Assigned to GOV FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
FACT SHEET FOR H.B. 2594
GRRC; continuation
Purpose
Continues the Governor's Regulatory Review Council (GRRC) for two years. Prescribes
requirements for GRRC regulatory rule review and approval including prohibiting GRRC from
approving a rule during a study session. Modifies GRRC membership and outlines requirements
for the Chairperson of GRRC.
Background
Established in 1981, GRRC is responsible for review and approval of state agency rules
and policies. Before an agency may file a rule with the Secretary of State, the agency must submit
the rule to GRRC for approval. GRRC's review process consists of evaluating the economic, small
business and consumer impact of the agency's proposed rule. GRRC considers the overall burden
and costs of implementing the proposed rule and determines whether it is necessary for the
agency's underlying regulatory objective. Statute outlines that unless a rule meets all requirements,
GRRC must not approve the rule.
GRRC consists of six members who are appointed by the Governor and confirmed by the
Senate. GRRC membership must consist of: 1) one member who represents the public interest;
2) one member who represents the business community; 3) one member who is a small business
owner; 4) one member from a list of three people who are not legislators submitted by the Senate
President; 5) one member from a list of three people who are not legislators submitted by the
Speaker of the House of Representatives (House); and 6) one member who is an attorney licensed
to practice law in Arizona. The Director or Assistant Director of the Arizona Department of
Administration (ADOA) is responsible for administering GRRC. The Governor must appoint the
members of GRRC for staggered terms of three years. A vacancy that occurs on GRRC must be
filled by an appointment from the Governor for the unexpired portion of the term in the same
manner as outlined by statute.
A person may petition GRRC to request 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
or is not demonstrated to be necessary to fulfill a public health, safety or welfare concern. GRRC
must not approve a rule with an immediate effective date unless two-thirds of the voting quorum
vote to approve the rule. GRRC may require a representative of an agency whose rule is under
examination to attend a meeting and answer questions. GRRC terminates on July 1, 2025, unless
continued by the Legislature (Executive Order 81-3; A.R.S. Title 41, Chapter 6).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation. FACT SHEET
H.B. 2594
Page 2
Provisions
Continuation
1. Continues, retroactive to July 1, 2025, GRRC until July 1, 2027.
2. Repeals GRRC on January 1, 2028.
GRRC Membership
3. Modifies GRRC membership to consist of:
a) the Director or the Assistant Director of the ADOA;
b) two members who are appointed by the Governor, subject to Senate confirmation;
c) one member who is appointed by the Governor from a list of five people who are not
legislators and who are submitted jointly by the Senate President and Speaker of the House;
d) one member who is appointed by the Senate President;
e) one member who is appointed by the Speaker of the House; and
f) one member who is appointed jointly by the Senate President and Speaker of the House.
4. Prescribes the order of GRRC membership appointments by requiring:
a) the member appointed by the Senate President to be appointed first;
b) the member appointed by the Speaker of the House to be appointed second;
c) the member appointed jointly by the Senate President and Speaker of the House to be
appointed third;
d) the member appointed by the Governor for the list submitted jointly by the Senate President
and Speaker of the House to be appointed fourth; and
e) the members appointed by the Governor, subject to Senate confirmation, to be appointed
fifth.
5. Requires all subsequent GRRC membership appointments to be made as prescribed by statute.
6. Designates the Director or Assistant Director of ADOA as the Chairperson of GRRC.
7. Requires the Director or Assistant Director of ADOA to oversee the legal and economic
analysis of any rules received by GRRC.
8. Prohibits the Assistant Director of ADOA from being the General Counsel of ADOA.
9. Requires GRRC to elect a Vice-Chairperson to serve as Chairperson in the Chairperson's
absence.
10. Allows a GRRC member who is appointed as outlined to be reappointed.
11. Requires any vacancy that occurs on GRRC during the term of office for any member to be
filled in the same manner as the initial appointment.
12. Stipulates that all members serving on GRRC as of the effective date may continue to serve
until the expiration of the member's term. FACT SHEET
H.B. 2594
Page 3
GRRC Review
13. Adds that a person may petition GRRC to request a review of an existing agency practice,
substantive policy statement, final rule or regulatory licensing requirement that the petitioner
alleges violates a person's fundamental legal rights.
14. Prohibits GRRC from approving a rule during a study session meeting.
15. Specifies that GRRC may only vote to approve a rule at a GRRC meeting following each study
session meeting.
16. Requires GRRC, for all meetings that are open to the public for comment, to allot an equal
amount of time to the agency and individuals who support or oppose a rule.
17. Requires GRRC staff to:
a) independently review the Arizona Constitution and any relevant statutes and advise GRRC
on the constitutionality of a rule independent of an agency's statutory justification for the
rule; and
b) distribute all GRRC meeting materials to the Senate President and Speaker of the House at
the same time the materials are distributed to GRRC members.
18. Defines study session meeting as a public meeting where GRRC members meet with agency
representatives, the public and GRRC staff to discuss proposed rules and review reports.
Miscellaneous
19. Contains a purpose statement.
20. Makes technical and conforming changes.
21. Becomes effective on the general effective date, with a retroactive provision as noted.
House Action
GOV 2/19/25 DPA 4-2-1-0
3
rd
Read 3/10/25 31-25-4
Prepared by Senate Research
March 24, 2025
AN/DL/slp