House Engrossed GRRC; continuation State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session 2025 HOUSE BILL 2594 AN ACT amending sections 41-1033, 41-1051 and 41-1052, Arizona Revised Statutes; repealing section 41-3025.05, Arizona Revised Statutes; amending title 41, chapter 27, article 2, Arizona Revised Statutes, by adding section 41-3027.09; relating to the governor's regulatory review council. (TEXT OF BILL BEGINS ON NEXT PAGE)
House Engrossed GRRC; continuation
State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session 2025
HOUSE BILL 2594
House Engrossed
GRRC; continuation
State of Arizona
House of Representatives
Fifty-seventh Legislature
First Regular Session
2025
HOUSE BILL 2594
AN ACT
amending sections 41-1033, 41-1051 and 41-1052, Arizona Revised Statutes; repealing section 41-3025.05, Arizona Revised Statutes; amending title 41, chapter 27, article 2, Arizona Revised Statutes, by adding section 41-3027.09; relating to the governor's regulatory review council.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona: Section 1. Section 41-1033, Arizona Revised Statutes, is amended to read: START_STATUTE41-1033. Petition for a rule or review of an agency practice, substantive policy statement, final rule or unduly burdensome licensing requirement; notice A. Any person may petition an agency to do either of the following: 1. Make, amend or repeal a final rule. 2. Review an existing agency practice or substantive policy statement that the petitioner alleges to constitute a rule. B. An agency shall prescribe the form of the petition and the procedures for the petition's submission, consideration and disposition. The person shall state on the petition the rulemaking to review or the agency practice or substantive policy statement to consider revising, repealing or making into a rule. C. Not later than sixty days after submission of the petition, the agency shall either: 1. Reject the petition and state its reasons in writing for rejection to the petitioner. 2. Initiate rulemaking proceedings in accordance with this chapter. 3. If otherwise lawful, make a rule. D. The agency's response to the petition is open to public inspection. E. If an agency rejects a petition pursuant to subsection C of this section, the petitioner has thirty days to appeal to the council to review whether the existing agency practice or substantive policy statement constitutes a rule. The petitioner's appeal may not be more than five double-spaced pages. F. A person may petition the council to request a review of a final rule based on the person's belief that the final rule does not meet the requirements prescribed in section 41-1030. A petition submitted under this subsection may not be more than five double-spaced pages. G. A person may petition the council to request a review of an existing agency practice, substantive policy statement, final rule or regulatory licensing requirement that the petitioner alleges is not specifically authorized by statute, exceeds the agency's statutory authority, is unduly burdensome, violates a person's fundamental legal rights or is not demonstrated to be necessary to specifically fulfill a public health, safety or welfare concern. On receipt of a properly submitted petition pursuant to this section, the council shall review the existing agency practice, substantive policy statement, final rule or regulatory licensing requirement as prescribed by this section. A petition submitted under this subsection may not be more than five double-spaced pages. This subsection does not apply to an individual or institution that is subject to title 36, chapter 4, article 10 or chapter 20. H. If the council receives information that alleges an existing agency practice or substantive policy statement may constitute a rule, that a final rule does not meet the requirements prescribed in section 41-1030 or that an existing agency practice, substantive policy statement, final rule or regulatory licensing requirement exceeds the agency's statutory authority, is not specifically authorized by statute or does not meet the guidelines prescribed in subsection G of this section, or if the council receives an appeal under subsection E of this section, and at least three council members request of the chairperson that the matter shall be heard in a public meeting: 1. Within ninety days after receiving the third council member's request, the council shall determine whether any of the following applies: (a) The agency practice or substantive policy statement constitutes a rule. (b) The final rule meets the requirements prescribed in section 41-1030. (c) An existing agency practice, substantive policy statement, final rule or regulatory licensing requirement exceeds the agency's statutory authority, is not specifically authorized by statute or meets does not meet the guidelines prescribed in subsection G of this section. 2. Within ten days after receiving the third council member's request, the council shall notify the agency that the matter has been or will be placed on the council's agenda for consideration on the merits. 3. Not later than thirty days after receiving notice from the council, the agency shall submit a statement of not more than five double-spaced pages to the council that addresses whether any of the following applies: (a) The existing agency practice or substantive policy statement constitutes a rule. (b) The final rule meets the requirements prescribed in section 41-1030. (c) An existing agency practice, substantive policy statement, final rule or regulatory licensing requirement exceeds the agency's statutory authority, is not specifically authorized by statute or meets the guidelines prescribed in subsection G of this section. I. At the hearing, the council shall allocate the petitioner and the agency an equal amount of time for oral comments not including any time spent answering questions raised by council members. The council may also allocate time for members of the public who have an interest in the issue to provide oral comments. J. For the purposes of subsection H of this section, the council meeting shall not be scheduled until the expiration of the agency response period prescribed in subsection H, paragraph 3 of this section. K. An agency practice, substantive policy statement, final rule or regulatory licensing requirement considered by the council pursuant to this section shall remain in effect while under consideration of the council. If the council determines that the agency practice, substantive policy statement or regulatory licensing requirement exceeds the agency's statutory authority, is not authorized by statute or constitutes a rule or that the final rule does not meet the requirements prescribed in section 41-1030, the practice, policy statement, rule or regulatory licensing requirement shall be void. If the council determines that the existing agency practice, substantive policy statement, final rule or regulatory licensing requirement is unduly burdensome or is not demonstrated to be necessary to specifically fulfill a public health, safety or welfare concern, the council shall modify, revise or declare void any such existing agency practice, substantive policy statement, final rule or regulatory licensing requirement. If an agency decides to further pursue a practice, substantive policy statement or regulatory licensing requirement that has been declared void or has been modified or revised by the council, the agency may do so only pursuant to a new rulemaking. L. A council decision pursuant to this section shall be made by a majority of the council members who are present and voting on the issue. Notwithstanding any other law, the council may not base any decision concerning an agency's compliance with the requirements of section 41-1030 in issuing a final rule or substantive policy statement on whether any party or person commented on the rulemaking or substantive policy statement. M. A decision by the council pursuant to this section is not subject to judicial review, except that, in addition to the procedure prescribed in this section or in lieu of the procedure prescribed in this section, a person may seek declaratory relief pursuant to section 41-1034. N. Each agency and the secretary of state shall post prominently on their websites notice of an individual's right to petition the council for review pursuant to this section.END_STATUTEN. Each agency and the secretary of state shall post prominently on their websites notice of an individual's right to petition the council for review pursuant to this section. N. Each agency and the secretary of state shall post prominently on their websites notice of an individual's right to petition the council for review pursuant to this section. Section Section 41-1033, Arizona Revised Statutes, is amended to read: 41-1033. Petition for a rule or review of an agency practice, substantive policy statement, final rule or unduly burdensome licensing requirement; notice A. Any person may petition an agency to do either of the following: 1. Make, amend or repeal a final rule. 2. Review an existing agency practice or substantive policy statement that the petitioner alleges to constitute a rule. B. An agency shall prescribe the form of the petition and the procedures for the petition's submission, consideration and disposition. The person shall state on the petition the rulemaking to review or the agency practice or substantive policy statement to consider revising, repealing or making into a rule. C. Not later than sixty days after submission of the petition, the agency shall either: 1. Reject the petition and state its reasons in writing for rejection to the petitioner. 2. Initiate rulemaking proceedings in accordance with this chapter. 3. If otherwise lawful, make a rule. D. The agency's response to the petition is open to public inspection. E. If an agency rejects a petition pursuant to subsection C of this section, the petitioner has thirty days to appeal to the council to review whether the existing agency practice or substantive policy statement constitutes a rule. The petitioner's appeal may not be more than five double-spaced pages. F. A person may petition the council to request a review of a final rule based on the person's belief that the final rule does not meet the requirements prescribed in section 41-1030. A petition submitted under this subsection may not be more than five double-spaced pages. G. A person may petition the council to request a review of an existing agency practice, substantive policy statement, final rule or regulatory licensing requirement that the petitioner alleges is not specifically authorized by statute, exceeds the agency's statutory authority, is unduly burdensome, violates a person's fundamental legal rights or is not demonstrated to be necessary to specifically fulfill a public health, safety or welfare concern. On receipt of a properly submitted petition pursuant to this section, the council shall review the existing agency practice, substantive policy statement, final rule or regulatory licensing requirement as prescribed by this section. A petition submitted under this subsection may not be more than five double-spaced pages. This subsection does not apply to an individual or institution that is subject to title 36, chapter 4, article 10 or chapter 20. H. If the council receives information that alleges an existing agency practice or substantive policy statement may constitute a rule, that a final rule does not meet the requirements prescribed in section 41-1030 or that an existing agency practice, substantive policy statement, final rule or regulatory licensing requirement exceeds the agency's statutory authority, is not specifically authorized by statute or does not meet the guidelines prescribed in subsection G of this section, or if the council receives an appeal under subsection E of this section, and at least three council members request of the chairperson that the matter shall be heard in a public meeting and the council shall notify the agency that the matter has been placed on the council's agenda. Before the public meeting is held, the following must be completed: 1. Within ninety days after receiving the third council member's request receiving the petition, the council shall determine whether any of the following applies: (a) The agency practice or substantive policy statement constitutes a rule. (b) The final rule meets the requirements prescribed in section 41-1030. (c) An existing agency practice, substantive policy statement, final rule or regulatory licensing requirement exceeds the agency's statutory authority, is not specifically authorized by statute or meets does not meet the guidelines prescribed in subsection G of this section. 2. Within ten days after receiving the third council member's request, the council shall notify the agency that the matter has been or will be placed on the council's agenda for consideration on the merits. 3. 2. Not later than thirty days after receiving notice from the council, the agency shall submit a statement of not more than five double-spaced pages to the council that addresses whether any of the following applies: (a) The existing agency practice or substantive policy statement constitutes a rule. (b) The final rule meets the requirements prescribed in section 41-1030. (c) An existing agency practice, substantive policy statement, final rule or regulatory licensing requirement exceeds the agency's statutory authority, is not specifically authorized by statute or meets the guidelines prescribed in subsection G of this section. I. At the hearing, the council shall allocate the petitioner and the agency an equal amount of time for oral comments not including any time spent answering questions raised by council members. The council may also allocate time for members of the public who have an interest in the issue to provide oral comments. J. For the purposes of subsection H of this section, the council meeting shall not be scheduled until the expiration of the agency response period prescribed in subsection H, paragraph 3 2 of this section. K. An agency practice, substantive policy statement, final rule or regulatory licensing requirement considered by the council pursuant to this section shall remain in effect while under consideration of the council. If the council determines that the agency practice, substantive policy statement or regulatory licensing requirement exceeds the agency's statutory authority, is not authorized by statute or constitutes a rule or that the final rule does not meet the requirements prescribed in section 41-1030, the practice, policy statement, rule or regulatory licensing requirement shall be void. If the council determines that the existing agency practice, substantive policy statement, final rule or regulatory licensing requirement is unduly burdensome or is not demonstrated to be necessary to specifically fulfill a public health, safety or welfare concern, the council shall modify, revise or declare void any such existing agency practice, substantive policy statement, final rule or regulatory licensing requirement. If an agency decides to further pursue a practice, substantive policy statement or regulatory licensing requirement that has been declared void or has been modified or revised by the council, the agency may do so only pursuant to a new rulemaking. L. A council decision pursuant to this section shall be made by a majority of the council members who are present and voting on the issue. Notwithstanding any other law, the council may not base any decision concerning an agency's compliance with the requirements of section 41-1030 in issuing a final rule or substantive policy statement on whether any party or person commented on the rulemaking or substantive policy statement. M. A decision by the council pursuant to this section is not subject to judicial review, except that, in addition to the procedure prescribed in this section or in lieu of the procedure prescribed in this section, a person may seek declaratory relief pursuant to section 41-1034. Sec. 2. Section 41-1051, Arizona Revised Statutes, is amended to read: START_STATUTE41-1051. Governor's regulatory review council; membership; terms; compensation; powers A. The governor's regulatory review council is established consisting of six members who are appointed by the governor pursuant to section 38-211 and who are subject to sections 38-291 and 38-295 and the director of the department of administration or the assistant director of the department of administration who is responsible for administering the council. The director or assistant director is an ex officio member and chairperson of the council. The assistant director may not be the general counsel of the DEPARTMENT of administration. and is responsible for the legal and economic analysis of any rules received by the councilThe council shall elect a vice-chairperson to serve as chairperson in the chairperson's absence. The governor shall appoint at least one member who represents the public interest, at least one member who represents the business community, at least one member who is a small business owner, one member from a list of three persons who are not legislators submitted by the president of the senate and one member from a list of three persons who are not legislators submitted by the speaker of the house of representatives. At least one member of the council shall be an attorney licensed to practice law in this state. The governor shall appoint the members of the council for staggered terms of three years. A vacancy occurring during the term of office of any member shall be filled by appointment by the governor for the unexpired portion of the term in the same manner as provided in this section. A. The governor's regulatory review council is established consisting of the following members: 1. the director of the department of administration or the assistant director of the department of administration who is responsible for administering the council. THE ASSISTANT DIRECTOR MAY NOT BE THE GENERAL COUNSEL OF THE DEPARTMENT OF ADMINISTRATION. The director or assistant director is an advisory member and chairperson of the council AND SHALL OVERSEE THE LEGAL AND ECONOMIC ANALYSIS OF ANY RULES RECEIVED BY THE COUNCIL. 2. two members who are appointed by the governor pursuant to section 38-211. 3. one member who is appointed by the governor from a list of five persons who are not legislators and who are submitted jointly by the president of the senate and the speaker of the house of representatives. 4. One member who is appointed by the president of the senate. 5. One member who is appointed by the speaker of the house of representatives. 6. One member who is appointed jointly by the president of the senate and the speaker of the house of representatives. B. Members of the council who are appointed pursuant to subsection A of this section shall be appointed for staggered terms of three years and may be reappointed. The council shall elect a vice chairperson to serve as chairperson in the chairperson's absence. A vacancy occurring during the term of office of any member shall be filled for the unexpired {{A. The governor's regulatory review council is established consisting of the following members: 1. the director of the department of administration or the assistant director of the department of administration who is responsible for administering the council. THE ASSISTANT DIRECTOR MAY NOT BE THE GENERAL COUNSEL OF THE DEPARTMENT OF ADMINISTRATION. The director or assistant director is an advisory member and chairperson of the council AND SHALL OVERSEE THE LEGAL AND ECONOMIC ANALYSIS OF ANY RULES RECEIVED BY THE COUNCIL. 2. two members who are appointed by the governor pursuant to section 38-211. 3. one member who is appointed by the governor from a list of five persons who are not legislators and who are submitted jointly by the president of the senate and the speaker of the house of representatives. 4. One member who is appointed by the president of the senate. 5. One member who is appointed by the speaker of the house of representatives. 6. One member who is appointed jointly by the president of the senate and the speaker of the house of representatives. B. Members of the council who are appointed pursuant to subsection A of this section shall be appointed for staggered terms of three years and may be reappointed. The council shall elect a vice chairperson to serve as chairperson in the chairperson's absence. A vacancy occurring during the term of office of any member shall be filled for the unexpired portion of the term in the same manner as the initial appointment. B. C. The council shall meet at least once a month at a time and place set by the chairperson and at other times and places as the chairperson deems necessary. C. D. Members of the council are eligible to receive compensation in an amount of two hundred dollars $200 for each day on which the council meets and reimbursement of expenses pursuant to title 38, chapter 4, article 2. D. E. The chairperson, subject to chapter 4, article 4 and, as applicable, articles 5 and 6 of this title, shall employ, determine the conditions of employment of and specify the duties of administrative, secretarial and clerical employees as the chairperson deems necessary. E. F. The council may make rules pursuant to this chapter to carry out the purposes of this chapter. F. G. The council shall make a list of agency rules approved or returned pursuant to sections 41-1027 and 41-1052 and section 41-1056, subsection C for the previous twelve-month period available to the public on request and on the council's website. H. Council staff shall do both of the following: 1. INDEPENDENTly review the constitution of this state and any relevant statutes and advise the council on the constitutionality of a rule independent of an agency's statutory justification for the rule. 2. distribute all council meeting materials to the president of the senate and the speaker of the house of representatives at the same time the materials are DISTRIBUTED to the members of the council.END_STATUTEG. Council staff shall: 1. INDEPENDENTly review the constitution of this state and any relevant state statutes and advise the council on the constitutionality of a rule that is independent of an agency's statutory justification for the rule. 2. distribute all required meeting materials to the president of the senate and the speaker of the house of representatives at the same time the materials are DISTRIBUTED to the members of the council. Sec. 3. Section 41-1052, Arizona Revised Statutes, is amended to read: START_STATUTE41-1052. Council review and approval; rule expiration; definition A. Before filing a final rule subject to this section with the secretary of state, an agency shall prepare, transmit to the council and the committee and obtain the council's approval of the rule and its preamble and economic, small business and consumer impact statement that meets the requirements of section 41-1055. The office of economic opportunity shall prepare the economic, small business and consumer impact statement. B. The council shall accept an early review petition of a proposed rule, in whole or in part, if the proposed rule is alleged to violate any of the criteria prescribed in subsection D of this section and if the early petition is filed by a person who would be adversely impacted by the proposed rule. The council may determine whether the proposed rule, in whole or in part, violates any of the criteria prescribed in subsection D of this section. C. Within one hundred twenty days after receipt of the rule, preamble and economic, small business and consumer impact statement, the council shall review and approve or return, in whole or in part, the rule, preamble or economic, small business and consumer impact statement. An agency may resubmit a rule, preamble or economic, small business and consumer impact statement if the council returns the rule, preamble or economic, small business and consumer impact statement or preamble, in whole or in part, to the agency. D. The council shall not approve the rule unless: 1. The economic, small business and consumer impact statement contains information from the state, data and analysis prescribed by this article. 2. The economic, small business and consumer impact statement is generally accurate. 3. The probable benefits of the rule outweigh within this state the probable costs of the rule and the agency has demonstrated that it has selected the alternative that imposes the least burden and costs to persons regulated by the rule, including paperwork and other compliance costs, necessary to achieve the underlying regulatory objective. 4. The rule is written in a manner that is clear, concise and understandable to the general public. 5. The rule is not illegal, inconsistent with legislative intent or beyond the agency's statutory authority and meets the requirements prescribed in section 41-1030. 6. The agency adequately addressed, in writing, the comments on the proposed rule and any supplemental proposals. 7. The rule is not a substantial change, considered as a whole, from the proposed rule and any supplemental notices. 8. The preamble discloses a reference to any study relevant to the rule that the agency reviewed and either did or did not rely on in the agency's evaluation of or justification for the rule. 9. The rule is not more stringent than a corresponding federal law unless there is statutory authority to exceed the requirements of that federal law. 10. If a rule requires a permit, the permitting requirement complies with section 41-1037. E. The council shall verify that a rule with new fees does not violate section 41-1008. The council shall not approve a rule that contains a fee increase unless two-thirds of the voting quorum present votes to approve the rule. F. The council shall verify that a rule with an immediate effective date complies with section 41-1032. The council shall not approve a rule with an immediate effective date unless two-thirds of the voting quorum present votes to approve the rule. The council may not vote to approve a rule during a study session meeting and may only vote to approve a rule at a council meeting following each study session meeting.The council may not vote to approve a rule during a study session meeting and may only MAY ONLY VOTE TO APPROVE A RULE DURING AN OFFICIAL COUNCIL MEETING.] G. If the rule relies on scientific principles or methods, including a study disclosed pursuant to subsection D, paragraph 8 of this section, and a person submits an analysis to the council questioning whether the rule is based on valid scientific or reliable principles or methods, the council shall not approve the rule unless the council determines that the rule is based on valid scientific or reliable principles or methods that are specific and not of a general nature. In making a determination of reliability or validity, the council shall consider the following factors as applicable to the rule: 1. The authors of the study, principle or method have subject matter knowledge, skill, experience, training and expertise. 2. The study, principle or method is based on sufficient facts or data. 3. The study is the product of reliable principles and methods. 4. The study and its conclusions, principles or methods have been tested or subjected to peer reviewed publications. 5. The known or potential error rate of the study, principle or method has been identified along with its basis. 6. The methodology and approach of the study, principle or method are generally accepted in the scientific community. H. The council may require a representative of an agency whose rule is under examination to attend a council meeting and answer questions. The council may also communicate to the agency its comments on any rule, preamble or economic, small business and consumer impact statement and require the agency to respond to its comments in writing. I. For all council meetings that are open to the public for comment, the council shall allot an equal amount of time to the agency and INDIVIDUALS who support or oppose a rule. I. For all council meetings that are open to the public for comment, the council shall allot an equal amount of time to INDIVIDUALS who support or oppose a rule.I. J. At any time during the thirty days immediately following receipt of the rule, a person may submit written comments to the council that are within the scope of subsection D, E, F or G of this section. The council may allow testimony at a council meeting within the scope of subsection D, E, F or G of this section. J. K. If the agency makes a good faith effort to comply with the requirements prescribed in this article and has explained in writing the methodology used to produce the economic, small business and consumer impact statement, the rule may not be invalidated after it is finalized on the ground that the contents of the economic, small business and consumer impact statement are insufficient or inaccurate or on the ground that the council erroneously approved the rule, except as provided by section 41-1056.01. K. L. The absence of comments pursuant to subsection D, E, F or G of this section or article 4.1 of this chapter does not prevent the council from acting pursuant to this section. L. M. The council shall review and approve or reject a notice of proposed expedited rulemaking pursuant to section 41-1027. M. N. An agency that seeks to expire a rule or rules may file a notice of intent to expire with the council. The notice shall describe the rule or rules to be expired and the reasons for expiration. The council shall place the notice on the agenda for the next scheduled council meeting for consideration. If a quorum of the council approves the notice, the council shall cause a notice of rule expiration to be prepared and provide the notice of rule expiration to the agency for filing with the secretary of state. o. For the purposes of this section, "STUDY session meeting" means a public MEETING where Council members meet with agency representatives, the public and Council staff to discuss proposed rules and review reports.N. For the purposes of this section, "STUDY session meeting" means the public MEETING where Councilmembers meet with agency representatives, the public and Council staff to discuss proposed rules and review reports.]END_STATUTE Sec. 4. Repeal Section 41-3025.05, Arizona Revised Statutes, is repealed. Sec. 5. Title 41, chapter 27, article 2, Arizona Revised Statutes, is amended by adding section 41-3027.09, to read: START_STATUTE41-3027.09. Governor's regulatory review council; termination July 1, 2027 A. The governor's regulatory review council terminates on July 1, 2027. B. Title 41, chapter 6, article 5 and this section are repealed on January 1, 2028. END_STATUTE Sec. 6. Purpose Pursuant to section 41-2955, subsection B, Arizona Revised Statutes, the legislature continues the governor's regulatory review council to review and approve or reject rules, preambles, economic, small business and consumer impact statements and summary rule packages that are submitted by agencies. Sec. 7. Retention of members Notwithstanding section 41-1051, Arizona Revised Statutes, as amended by this act, all persons serving as members of the governor's regulatory review council on the effective date of this act may continue to serve until the expiration of their normal terms. The member appointed by the president of the senate shall be appointed first, the member appointed by the speaker of the house of representatives shall be appointed second, the member appointed jointly by the president of the senate and the speaker of the house of representatives shall be appointed third, the member appointed by the governor from a list submitted by the president of the senate and the speaker of the house of representatives shall be appointed fourth and the members appointed by the governor pursuant to section 38-211, Arizona Revised Statutes, shall be appointed fifth. All subsequent appointments shall be as prescribed by statute.shall be appointed fourth and the members appointed by the governor pursuant to section 38-211, Arizona revised statutes, shall be appointed fifth. All subsequent appointments shall be as prescribed by statute. . The member appointed by the president shall be first, the member appointed by the speaker shall be second, the member appointed jointly by the president of the senate and the speaker of the house of representatives shall be appointed second, the members appointed by the governor from a list submitted by the president and the speaker of the house of representatives shall be appointed forth and the members appointed by the governor 7.Notwithstanding section 41-1051, Arizona Revised Statutes, as amended by this act, all persons serving as members of the Governor's regulatory review council on the effective date of this act may continue to serve until the expiration of their normal terms. All subsequent appointments shall be as prescribed by statute. Sec. 8. Retroactivity Sections 4 and 5 of this act apply retroactively to from and after July 1, 2025.
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 41-1033, Arizona Revised Statutes, is amended to read:
START_STATUTE41-1033. Petition for a rule or review of an agency practice, substantive policy statement, final rule or unduly burdensome licensing requirement; notice
A. Any person may petition an agency to do either of the following:
1. Make, amend or repeal a final rule.
2. Review an existing agency practice or substantive policy statement that the petitioner alleges to constitute a rule.
B. An agency shall prescribe the form of the petition and the procedures for the petition's submission, consideration and disposition. The person shall state on the petition the rulemaking to review or the agency practice or substantive policy statement to consider revising, repealing or making into a rule.
C. Not later than sixty days after submission of the petition, the agency shall either:
1. Reject the petition and state its reasons in writing for rejection to the petitioner.
2. Initiate rulemaking proceedings in accordance with this chapter.
3. If otherwise lawful, make a rule.
D. The agency's response to the petition is open to public inspection.
E. If an agency rejects a petition pursuant to subsection C of this section, the petitioner has thirty days to appeal to the council to review whether the existing agency practice or substantive policy statement constitutes a rule. The petitioner's appeal may not be more than five double-spaced pages.
F. A person may petition the council to request a review of a final rule based on the person's belief that the final rule does not meet the requirements prescribed in section 41-1030. A petition submitted under this subsection may not be more than five double-spaced pages.
G. A person may petition the council to request a review of an existing agency practice, substantive policy statement, final rule or regulatory licensing requirement that the petitioner alleges is not specifically authorized by statute, exceeds the agency's statutory authority, is unduly burdensome, violates a person's fundamental legal rights or is not demonstrated to be necessary to specifically fulfill a public health, safety or welfare concern. On receipt of a properly submitted petition pursuant to this section, the council shall review the existing agency practice, substantive policy statement, final rule or regulatory licensing requirement as prescribed by this section. A petition submitted under this subsection may not be more than five double-spaced pages. This subsection does not apply to an individual or institution that is subject to title 36, chapter 4, article 10 or chapter 20.
H. If the council receives information that alleges an existing agency practice or substantive policy statement may constitute a rule, that a final rule does not meet the requirements prescribed in section 41-1030 or that an existing agency practice, substantive policy statement, final rule or regulatory licensing requirement exceeds the agency's statutory authority, is not specifically authorized by statute or does not meet the guidelines prescribed in subsection G of this section, or if the council receives an appeal under subsection E of this section, and at least three council members request of the chairperson that the matter shall be heard in a public meeting:
1. Within ninety days after receiving the third council member's request, the council shall determine whether any of the following applies:
(a) The agency practice or substantive policy statement constitutes a rule.
(b) The final rule meets the requirements prescribed in section 41-1030.
(c) An existing agency practice, substantive policy statement, final rule or regulatory licensing requirement exceeds the agency's statutory authority, is not specifically authorized by statute or meets does not meet the guidelines prescribed in subsection G of this section.
2. Within ten days after receiving the third council member's request, the council shall notify the agency that the matter has been or will be placed on the council's agenda for consideration on the merits.
3. Not later than thirty days after receiving notice from the council, the agency shall submit a statement of not more than five double-spaced pages to the council that addresses whether any of the following applies:
(a) The existing agency practice or substantive policy statement constitutes a rule.
(b) The final rule meets the requirements prescribed in section 41-1030.
(c) An existing agency practice, substantive policy statement, final rule or regulatory licensing requirement exceeds the agency's statutory authority, is not specifically authorized by statute or meets the guidelines prescribed in subsection G of this section.
I. At the hearing, the council shall allocate the petitioner and the agency an equal amount of time for oral comments not including any time spent answering questions raised by council members. The council may also allocate time for members of the public who have an interest in the issue to provide oral comments.
J. For the purposes of subsection H of this section, the council meeting shall not be scheduled until the expiration of the agency response period prescribed in subsection H, paragraph 3 of this section.
K. An agency practice, substantive policy statement, final rule or regulatory licensing requirement considered by the council pursuant to this section shall remain in effect while under consideration of the council. If the council determines that the agency practice, substantive policy statement or regulatory licensing requirement exceeds the agency's statutory authority, is not authorized by statute or constitutes a rule or that the final rule does not meet the requirements prescribed in section 41-1030, the practice, policy statement, rule or regulatory licensing requirement shall be void. If the council determines that the existing agency practice, substantive policy statement, final rule or regulatory licensing requirement is unduly burdensome or is not demonstrated to be necessary to specifically fulfill a public health, safety or welfare concern, the council shall modify, revise or declare void any such existing agency practice, substantive policy statement, final rule or regulatory licensing requirement. If an agency decides to further pursue a practice, substantive policy statement or regulatory licensing requirement that has been declared void or has been modified or revised by the council, the agency may do so only pursuant to a new rulemaking.
L. A council decision pursuant to this section shall be made by a majority of the council members who are present and voting on the issue. Notwithstanding any other law, the council may not base any decision concerning an agency's compliance with the requirements of section 41-1030 in issuing a final rule or substantive policy statement on whether any party or person commented on the rulemaking or substantive policy statement.
M. A decision by the council pursuant to this section is not subject to judicial review, except that, in addition to the procedure prescribed in this section or in lieu of the procedure prescribed in this section, a person may seek declaratory relief pursuant to section 41-1034.
N. Each agency and the secretary of state shall post prominently on their websites notice of an individual's right to petition the council for review pursuant to this section.END_STATUTEN. Each agency and the secretary of state shall post prominently on their websites notice of an individual's right to petition the council for review pursuant to this section. N. Each agency and the secretary of state shall post prominently on their websites notice of an individual's right to petition the council for review pursuant to this section. Section Section 41-1033, Arizona Revised Statutes, is amended to read:
41-1033. Petition for a rule or review of an agency practice, substantive policy statement, final rule or unduly burdensome licensing requirement; notice
A. Any person may petition an agency to do either of the following:
1. Make, amend or repeal a final rule.
2. Review an existing agency practice or substantive policy statement that the petitioner alleges to constitute a rule.
B. An agency shall prescribe the form of the petition and the procedures for the petition's submission, consideration and disposition. The person shall state on the petition the rulemaking to review or the agency practice or substantive policy statement to consider revising, repealing or making into a rule.
C. Not later than sixty days after submission of the petition, the agency shall either:
1. Reject the petition and state its reasons in writing for rejection to the petitioner.
2. Initiate rulemaking proceedings in accordance with this chapter.
3. If otherwise lawful, make a rule.
D. The agency's response to the petition is open to public inspection.
E. If an agency rejects a petition pursuant to subsection C of this section, the petitioner has thirty days to appeal to the council to review whether the existing agency practice or substantive policy statement constitutes a rule. The petitioner's appeal may not be more than five double-spaced pages.
F. A person may petition the council to request a review of a final rule based on the person's belief that the final rule does not meet the requirements prescribed in section 41-1030. A petition submitted under this subsection may not be more than five double-spaced pages.
G. A person may petition the council to request a review of an existing agency practice, substantive policy statement, final rule or regulatory licensing requirement that the petitioner alleges is not specifically authorized by statute, exceeds the agency's statutory authority, is unduly burdensome, violates a person's fundamental legal rights or is not demonstrated to be necessary to specifically fulfill a public health, safety or welfare concern. On receipt of a properly submitted petition pursuant to this section, the council shall review the existing agency practice, substantive policy statement, final rule or regulatory licensing requirement as prescribed by this section. A petition submitted under this subsection may not be more than five double-spaced pages. This subsection does not apply to an individual or institution that is subject to title 36, chapter 4, article 10 or chapter 20.
H. If the council receives information that alleges an existing agency practice or substantive policy statement may constitute a rule, that a final rule does not meet the requirements prescribed in section 41-1030 or that an existing agency practice, substantive policy statement, final rule or regulatory licensing requirement exceeds the agency's statutory authority, is not specifically authorized by statute or does not meet the guidelines prescribed in subsection G of this section, or if the council receives an appeal under subsection E of this section, and at least three council members request of the chairperson that the matter shall be heard in a public meeting and the council shall notify the agency that the matter has been placed on the council's agenda. Before the public meeting is held, the following must be completed:
1. Within ninety days after receiving the third council member's request receiving the petition, the council shall determine whether any of the following applies:
(a) The agency practice or substantive policy statement constitutes a rule.
(b) The final rule meets the requirements prescribed in section 41-1030.
(c) An existing agency practice, substantive policy statement, final rule or regulatory licensing requirement exceeds the agency's statutory authority, is not specifically authorized by statute or meets does not meet the guidelines prescribed in subsection G of this section.
2. Within ten days after receiving the third council member's request, the council shall notify the agency that the matter has been or will be placed on the council's agenda for consideration on the merits.
3. 2. Not later than thirty days after receiving notice from the council, the agency shall submit a statement of not more than five double-spaced pages to the council that addresses whether any of the following applies:
(a) The existing agency practice or substantive policy statement constitutes a rule.
(b) The final rule meets the requirements prescribed in section 41-1030.
(c) An existing agency practice, substantive policy statement, final rule or regulatory licensing requirement exceeds the agency's statutory authority, is not specifically authorized by statute or meets the guidelines prescribed in subsection G of this section.
I. At the hearing, the council shall allocate the petitioner and the agency an equal amount of time for oral comments not including any time spent answering questions raised by council members. The council may also allocate time for members of the public who have an interest in the issue to provide oral comments.
J. For the purposes of subsection H of this section, the council meeting shall not be scheduled until the expiration of the agency response period prescribed in subsection H, paragraph 3 2 of this section.
K. An agency practice, substantive policy statement, final rule or regulatory licensing requirement considered by the council pursuant to this section shall remain in effect while under consideration of the council. If the council determines that the agency practice, substantive policy statement or regulatory licensing requirement exceeds the agency's statutory authority, is not authorized by statute or constitutes a rule or that the final rule does not meet the requirements prescribed in section 41-1030, the practice, policy statement, rule or regulatory licensing requirement shall be void. If the council determines that the existing agency practice, substantive policy statement, final rule or regulatory licensing requirement is unduly burdensome or is not demonstrated to be necessary to specifically fulfill a public health, safety or welfare concern, the council shall modify, revise or declare void any such existing agency practice, substantive policy statement, final rule or regulatory licensing requirement. If an agency decides to further pursue a practice, substantive policy statement or regulatory licensing requirement that has been declared void or has been modified or revised by the council, the agency may do so only pursuant to a new rulemaking.
L. A council decision pursuant to this section shall be made by a majority of the council members who are present and voting on the issue. Notwithstanding any other law, the council may not base any decision concerning an agency's compliance with the requirements of section 41-1030 in issuing a final rule or substantive policy statement on whether any party or person commented on the rulemaking or substantive policy statement.
M. A decision by the council pursuant to this section is not subject to judicial review, except that, in addition to the procedure prescribed in this section or in lieu of the procedure prescribed in this section, a person may seek declaratory relief pursuant to section 41-1034.
Sec. 2. Section 41-1051, Arizona Revised Statutes, is amended to read:
START_STATUTE41-1051. Governor's regulatory review council; membership; terms; compensation; powers
A. The governor's regulatory review council is established consisting of six members who are appointed by the governor pursuant to section 38-211 and who are subject to sections 38-291 and 38-295 and the director of the department of administration or the assistant director of the department of administration who is responsible for administering the council. The director or assistant director is an ex officio member and chairperson of the council. The assistant director may not be the general counsel of the DEPARTMENT of administration. and is responsible for the legal and economic analysis of any rules received by the councilThe council shall elect a vice-chairperson to serve as chairperson in the chairperson's absence. The governor shall appoint at least one member who represents the public interest, at least one member who represents the business community, at least one member who is a small business owner, one member from a list of three persons who are not legislators submitted by the president of the senate and one member from a list of three persons who are not legislators submitted by the speaker of the house of representatives. At least one member of the council shall be an attorney licensed to practice law in this state. The governor shall appoint the members of the council for staggered terms of three years. A vacancy occurring during the term of office of any member shall be filled by appointment by the governor for the unexpired portion of the term in the same manner as provided in this section.
A. The governor's regulatory review council is established consisting of the following members:
1. the director of the department of administration or the assistant director of the department of administration who is responsible for administering the council. THE ASSISTANT DIRECTOR MAY NOT BE THE GENERAL COUNSEL OF THE DEPARTMENT OF ADMINISTRATION. The director or assistant director is an advisory member and chairperson of the council AND SHALL OVERSEE THE LEGAL AND ECONOMIC ANALYSIS OF ANY RULES RECEIVED BY THE COUNCIL.
2. two members who are appointed by the governor pursuant to section 38-211.
3. one member who is appointed by the governor from a list of five persons who are not legislators and who are submitted jointly by the president of the senate and the speaker of the house of representatives.
4. One member who is appointed by the president of the senate.
5. One member who is appointed by the speaker of the house of representatives.
6. One member who is appointed jointly by the president of the senate and the speaker of the house of representatives.
B. Members of the council who are appointed pursuant to subsection A of this section shall be appointed for staggered terms of three years and may be reappointed. The council shall elect a vice chairperson to serve as chairperson in the chairperson's absence. A vacancy occurring during the term of office of any member shall be filled for the unexpired {{A. The governor's regulatory review council is established consisting of the following members:
1. the director of the department of administration or the assistant director of the department of administration who is responsible for administering the council. THE ASSISTANT DIRECTOR MAY NOT BE THE GENERAL COUNSEL OF THE DEPARTMENT OF ADMINISTRATION. The director or assistant director is an advisory member and chairperson of the council AND SHALL OVERSEE THE LEGAL AND ECONOMIC ANALYSIS OF ANY RULES RECEIVED BY THE COUNCIL.
2. two members who are appointed by the governor pursuant to section 38-211.
3. one member who is appointed by the governor from a list of five persons who are not legislators and who are submitted jointly by the president of the senate and the speaker of the house of representatives.
4. One member who is appointed by the president of the senate.
5. One member who is appointed by the speaker of the house of representatives.
6. One member who is appointed jointly by the president of the senate and the speaker of the house of representatives.
B. Members of the council who are appointed pursuant to subsection A of this section shall be appointed for staggered terms of three years and may be reappointed. The council shall elect a vice chairperson to serve as chairperson in the chairperson's absence. A vacancy occurring during the term of office of any member shall be filled for the unexpired portion of the term in the same manner as the initial appointment.
B. C. The council shall meet at least once a month at a time and place set by the chairperson and at other times and places as the chairperson deems necessary.
C. D. Members of the council are eligible to receive compensation in an amount of two hundred dollars $200 for each day on which the council meets and reimbursement of expenses pursuant to title 38, chapter 4, article 2.
D. E. The chairperson, subject to chapter 4, article 4 and, as applicable, articles 5 and 6 of this title, shall employ, determine the conditions of employment of and specify the duties of administrative, secretarial and clerical employees as the chairperson deems necessary.
E. F. The council may make rules pursuant to this chapter to carry out the purposes of this chapter.
F. G. The council shall make a list of agency rules approved or returned pursuant to sections 41-1027 and 41-1052 and section 41-1056, subsection C for the previous twelve-month period available to the public on request and on the council's website.
H. Council staff shall do both of the following:
1. INDEPENDENTly review the constitution of this state and any relevant statutes and advise the council on the constitutionality of a rule independent of an agency's statutory justification for the rule.
2. distribute all council meeting materials to the president of the senate and the speaker of the house of representatives at the same time the materials are DISTRIBUTED to the members of the council.END_STATUTEG. Council staff shall:
1. INDEPENDENTly review the constitution of this state and any relevant state statutes and advise the council on the constitutionality of a rule that is independent of an agency's statutory justification for the rule.
2. distribute all required meeting materials to the president of the senate and the speaker of the house of representatives at the same time the materials are DISTRIBUTED to the members of the council.
Sec. 3. Section 41-1052, Arizona Revised Statutes, is amended to read:
START_STATUTE41-1052. Council review and approval; rule expiration; definition
A. Before filing a final rule subject to this section with the secretary of state, an agency shall prepare, transmit to the council and the committee and obtain the council's approval of the rule and its preamble and economic, small business and consumer impact statement that meets the requirements of section 41-1055. The office of economic opportunity shall prepare the economic, small business and consumer impact statement.
B. The council shall accept an early review petition of a proposed rule, in whole or in part, if the proposed rule is alleged to violate any of the criteria prescribed in subsection D of this section and if the early petition is filed by a person who would be adversely impacted by the proposed rule. The council may determine whether the proposed rule, in whole or in part, violates any of the criteria prescribed in subsection D of this section.
C. Within one hundred twenty days after receipt of the rule, preamble and economic, small business and consumer impact statement, the council shall review and approve or return, in whole or in part, the rule, preamble or economic, small business and consumer impact statement. An agency may resubmit a rule, preamble or economic, small business and consumer impact statement if the council returns the rule, preamble or economic, small business and consumer impact statement or preamble, in whole or in part, to the agency.
D. The council shall not approve the rule unless:
1. The economic, small business and consumer impact statement contains information from the state, data and analysis prescribed by this article.
2. The economic, small business and consumer impact statement is generally accurate.
3. The probable benefits of the rule outweigh within this state the probable costs of the rule and the agency has demonstrated that it has selected the alternative that imposes the least burden and costs to persons regulated by the rule, including paperwork and other compliance costs, necessary to achieve the underlying regulatory objective.
4. The rule is written in a manner that is clear, concise and understandable to the general public.
5. The rule is not illegal, inconsistent with legislative intent or beyond the agency's statutory authority and meets the requirements prescribed in section 41-1030.
6. The agency adequately addressed, in writing, the comments on the proposed rule and any supplemental proposals.
7. The rule is not a substantial change, considered as a whole, from the proposed rule and any supplemental notices.
8. The preamble discloses a reference to any study relevant to the rule that the agency reviewed and either did or did not rely on in the agency's evaluation of or justification for the rule.
9. The rule is not more stringent than a corresponding federal law unless there is statutory authority to exceed the requirements of that federal law.
10. If a rule requires a permit, the permitting requirement complies with section 41-1037.
E. The council shall verify that a rule with new fees does not violate section 41-1008. The council shall not approve a rule that contains a fee increase unless two-thirds of the voting quorum present votes to approve the rule.
F. The council shall verify that a rule with an immediate effective date complies with section 41-1032. The council shall not approve a rule with an immediate effective date unless two-thirds of the voting quorum present votes to approve the rule. The council may not vote to approve a rule during a study session meeting and may only vote to approve a rule at a council meeting following each study session meeting.The council may not vote to approve a rule during a study session meeting and may only MAY ONLY VOTE TO APPROVE A RULE DURING AN OFFICIAL COUNCIL MEETING.]
G. If the rule relies on scientific principles or methods, including a study disclosed pursuant to subsection D, paragraph 8 of this section, and a person submits an analysis to the council questioning whether the rule is based on valid scientific or reliable principles or methods, the council shall not approve the rule unless the council determines that the rule is based on valid scientific or reliable principles or methods that are specific and not of a general nature. In making a determination of reliability or validity, the council shall consider the following factors as applicable to the rule:
1. The authors of the study, principle or method have subject matter knowledge, skill, experience, training and expertise.
2. The study, principle or method is based on sufficient facts or data.
3. The study is the product of reliable principles and methods.
4. The study and its conclusions, principles or methods have been tested or subjected to peer reviewed publications.
5. The known or potential error rate of the study, principle or method has been identified along with its basis.
6. The methodology and approach of the study, principle or method are generally accepted in the scientific community.
H. The council may require a representative of an agency whose rule is under examination to attend a council meeting and answer questions. The council may also communicate to the agency its comments on any rule, preamble or economic, small business and consumer impact statement and require the agency to respond to its comments in writing.
I. For all council meetings that are open to the public for comment, the council shall allot an equal amount of time to the agency and INDIVIDUALS who support or oppose a rule.
I. For all council meetings that are open to the public for comment, the council shall allot an equal amount of time to INDIVIDUALS who support or oppose a rule.I. J. At any time during the thirty days immediately following receipt of the rule, a person may submit written comments to the council that are within the scope of subsection D, E, F or G of this section. The council may allow testimony at a council meeting within the scope of subsection D, E, F or G of this section.
J. K. If the agency makes a good faith effort to comply with the requirements prescribed in this article and has explained in writing the methodology used to produce the economic, small business and consumer impact statement, the rule may not be invalidated after it is finalized on the ground that the contents of the economic, small business and consumer impact statement are insufficient or inaccurate or on the ground that the council erroneously approved the rule, except as provided by section 41-1056.01.
K. L. The absence of comments pursuant to subsection D, E, F or G of this section or article 4.1 of this chapter does not prevent the council from acting pursuant to this section.
L. M. The council shall review and approve or reject a notice of proposed expedited rulemaking pursuant to section 41-1027.
M. N. An agency that seeks to expire a rule or rules may file a notice of intent to expire with the council. The notice shall describe the rule or rules to be expired and the reasons for expiration. The council shall place the notice on the agenda for the next scheduled council meeting for consideration. If a quorum of the council approves the notice, the council shall cause a notice of rule expiration to be prepared and provide the notice of rule expiration to the agency for filing with the secretary of state.
o. For the purposes of this section, "STUDY session meeting" means a public MEETING where Council members meet with agency representatives, the public and Council staff to discuss proposed rules and review reports.N. For the purposes of this section, "STUDY session meeting" means the public MEETING where Councilmembers meet with agency representatives, the public and Council staff to discuss proposed rules and review reports.]END_STATUTE
Sec. 4. Repeal
Section 41-3025.05, Arizona Revised Statutes, is repealed.
Sec. 5. Title 41, chapter 27, article 2, Arizona Revised Statutes, is amended by adding section 41-3027.09, to read:
START_STATUTE41-3027.09. Governor's regulatory review council; termination July 1, 2027
A. The governor's regulatory review council terminates on July 1, 2027.
B. Title 41, chapter 6, article 5 and this section are repealed on January 1, 2028. END_STATUTE
Sec. 6. Purpose
Pursuant to section 41-2955, subsection B, Arizona Revised Statutes, the legislature continues the governor's regulatory review council to review and approve or reject rules, preambles, economic, small business and consumer impact statements and summary rule packages that are submitted by agencies.
Sec. 7. Retention of members
Notwithstanding section 41-1051, Arizona Revised Statutes, as amended by this act, all persons serving as members of the governor's regulatory review council on the effective date of this act may continue to serve until the expiration of their normal terms. The member appointed by the president of the senate shall be appointed first, the member appointed by the speaker of the house of representatives shall be appointed second, the member appointed jointly by the president of the senate and the speaker of the house of representatives shall be appointed third, the member appointed by the governor from a list submitted by the president of the senate and the speaker of the house of representatives shall be appointed fourth and the members appointed by the governor pursuant to section 38-211, Arizona Revised Statutes, shall be appointed fifth. All subsequent appointments shall be as prescribed by statute.shall be appointed fourth and the members appointed by the governor pursuant to section 38-211, Arizona revised statutes, shall be appointed fifth. All subsequent appointments shall be as prescribed by statute.
. The member appointed by the president shall be first, the member appointed by the speaker shall be second, the member appointed jointly by the president of the senate and the speaker of the house of representatives shall be appointed second, the members appointed by the governor from a list submitted by the president and the speaker of the house of representatives shall be appointed forth and the members appointed by the governor 7.Notwithstanding section 41-1051, Arizona Revised Statutes, as amended by this act, all persons serving as members of the Governor's regulatory review council on the effective date of this act may continue to serve until the expiration of their normal terms. All subsequent appointments shall be as prescribed by statute.
Sec. 8. Retroactivity
Sections 4 and 5 of this act apply retroactively to from and after July 1, 2025.