Assigned to COMPS &                                                                                                              FOR COMMITTEE

 

 


 

 

ARIZONA STATE SENATE

Fifty-Third Legislature, Second Regular Session

 

FACT SHEET FOR H.B. 2062

 

permits; licenses; denials; agency hearings

 

Purpose

 

Requires adjudication of contested agency cases to observe formal hearing procedures and establishes a preponderance of the evidence as the applicable burden of proof.

 

Background

 

Boards and commissions are statutorily established to license and regulate various professions and occupations. A board or commission may not base a licensing decision in whole or in part on a requirement or condition that is not specifically authorized by statute or rule (A.R.S. § 41-1030). Unless covered by an explicit exemption, a rule related to occupational licensing requires approval by the Governor's Regulatory Review Council (GRRC). GRRC may not approve a rule unless the probable benefits of the rule outweigh the probable costs. The board or commission must demonstrate that it has selected the alternative that imposes the least burden and costs necessary to achieve the underlying regulatory objective (A.R.S. § 41-1052).

 

The Administrative Procedures Act establishes procedures for adjudicating appeals of agency decisions. In contested agency actions, the agency may conduct a preliminary hearing informally without observing the rules of evidence required in judicial proceedings (A.R.S. § 41‑1062). Unresolved cases may be appealed to the Office of Administrative Hearings (OAH) to be adjudicated before an Administrative Law Judge (ALJ). All parties have the opportunity to respond, present evidence and deliver arguments on relevant issues discussed in the hearings (A.R.S. § 41-1092.07). The ALJ must issue a written decision within 20 days after the hearing is concluded (A.R.S. § 41-1092.08).

 

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

 

Provisions

 

Administrative Procedures Act

 

1.      Requires, unless knowingly and voluntarily waived by the parties, all adjudicative hearings to adhere to procedures observed during OAH or judicial proceedings.

 

2.      Repeals hearing procedures that allow contested cases to be adjudicated in an informal manner without adherence to rules of evidence required in judicial proceedings.

 

3.      Allows the hearing manner or the failure to adhere to rules of evidence to be grounds for evidence dismissal or decision reversal.

 

4.      Establishes that the burden of proof in all agency hearings is a preponderance of the evidence.

 

5.      Extends the burden of persuasion, assigned to the agency when setting fees, denying initial licenses or taking disciplinary actions, to the agency when denying a license renewal. 

 

License Information

 

6.      Requires an agency or political subdivision to specify license criteria in clear and unambiguous language that is subject to review by a court of competent jurisdiction without deference to the Legislature, agency or political subdivision.

 

7.      Presumes language approved by GRRC or issued as an agency clarification to be clear and unambiguous.

 

8.      Requires an agency or political subdivision to review a license approval or denial within 30 days of petition by the license applicant. 

 

Miscellaneous

 

9.      Becomes effective on the general effective date.

 

House Action

 

GOV               2/15/18     DPA     7-0-0-1

3rd Read          2/21/18                  60-0-0

 

Prepared by Senate Research

March 7, 2018

GH/lb