Assigned to JUD                                                                                                                     FOR COMMITTEE

 


 

 

 


ARIZONA STATE SENATE

Fifty-Fifth Legislature, First Regular Session

 

FACT SHEET FOR H.B. 2242

 

agency actions; procedures; fee awards

Purpose

Modifies limitations placed on the fees awarded to a prevailing party in specified civil actions against the state or a political subdivision. States that license application completeness determinations are appealable agency actions, with exceptions.

Background

            In addition to any costs that are awarded as prescribed by statute, a court must award fees and other expenses to any party other than the state or a city, town or county that prevails by an adjudication on the merits in outlined civil actions. Examples of actions when costs are required to be awarded include: 1) civil actions brought by the state or a city, town or county against the party; 2) a court proceeding for judicial review of a state, city, town or country decision; 3) a special action proceeding brought by the party to challenge an action by the state, a city, town or county against the party; and 4) a civil action brought by the party to challenge the seizure and sale of personal property by the state or a city, town or county (A.R.S. § 12-348(A)).

            The court may award fees and other expenses to a party, other than the state or a city, town or county that prevails by an adjudication on the merits in an action brought by the party against the state or a city, town or county in tax-related cases challenging: 1) the assessment, collection or refund of taxes or in an action brought by the state or a city, town or county against the party to enforce the assessment or collection of taxes or the denial of a refund; 2) the adequacy or regularity of notice of delinquent taxes; or 3) the regularity of sales of property for delinquent taxes (A.R.S. 12-348(B)).

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

Provisions

1.   Removes, as it applies to specified mandatory fee awards in non-tax civil actions in an action against the state or a political subdivision, the requirement that:

a)   expert fee awards be limited to a rate below the highest rate of compensation for experts paid by the state or a city, town or county; and

b)   attorney fee awards be limited to:

i. the amount that the prevailing party has paid or has agreed to pay the attorney; or

ii. a maximum amount of $75 per hour.

2.   Limits the award of attorney fees in an action against the state or political subdivision in non-tax-related actions to $350 per hour.

3.   Removes the $10,000 cap on awards of fees against a city, town or county in specified actions.

4.   Increases, from $75,000 to $150,000, the maximum award of fees against the state or a political subdivision for fees incurred at each level of judicial appeal in specified actions.

5.   Removes the specification that a proceeding must be a contested case in the awarding of fees and other expenses in an action to review an agency decision.

6.   Adds, to the regulatory bill of rights, that an agency cannot base a decision regarding any filing or other matter submitted to an agency on a requirement or condition that is not specifically authorized by a statute, rule, federal law or regulation or state tribal gaming compact.

7.   Defines a licensing decision.

8.   Modifies the definition of licensing.

9.   Applies the section of the Administrative Procedures Act (APA) governing inspections and audits to all state agencies that conduct inspections and audits.

10.  Dictates that the section of the APA that governs inspections and audits takes precedent over other sections of statute if a conflict arises with the rights afforded to a regulated person in any other statute.

11.  Prohibits an agency from basing specified licensing decisions on a requirement or condition that is not specifically authorized by statute, rule, federal law or regulation or state tribal gaming compact.

12.  Provides that a general grant of authority in statute does not constitute a basis for imposing a requirement or condition for approval of a decision on any filing or other matter submitted by a licensee, unless a rule is made pursuant to that general grant of authority that specifically authorizes the requirement or condition.

13.  Stipulates that a determination by an agency that a license application is not administratively complete is an appealable agency action, unless it is an application submitted to the Arizona Department of Water Resources.

14.  Entitles the applicant of a timely submitted appeal to an adjudication on the merits of the administrative completeness of the application.

15.  Contains an applicability clause.

16.  Makes technical and conforming changes.

17.  Becomes effective on the general effective date.

House Action

COM               2/2/21       DPA     9-1-0-0

3rd Read          2/11/21                  59-1-0

Prepared by Senate Research

March 2, 2021

JA/gs