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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
behavioral health examiners board; continuation
(NOW: health boards; state agencies; continuations)
Purpose
Continues the Governor's Regulatory Review Council (GRRC), the Department of Insurance and Financial Institutions (DIFI), the Arizona Board of Behavioral Health Examiners, the Arizona Board of Dental Examiners (BODEX), the Arizona Board of Osteopathic Examiners in Medicine and Surgery and the Arizona Board of Respiratory Care Examiners. Modifies GRRC membership and appointment requirements and outlines requirements for GRRC meetings.
Background
GRRC
Established in 1981, GRRC is responsible for the review and approval of state agency rules and policies. 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. GRRC consists of six members who are appointed by the Governor and confirmed by the Senate (A.R.S. §§ 41-1051 and 41-1052).
The Senate Government Committee of Reference (COR) held a public meeting on Wednesday, March 26, 2025, to review the Auditor General's Performance Audit and Sunset Review Report, consider GRRC's responses to the statutorily outlined sunset factors and receive public testimony. The COR recommended that GRRC be continued for two years until July 1, 2027, with modifications to be determined in the authorizing legislation (COR Report). GRRC terminates on July 1, 2025, unless continued by the Legislature (A.R.S. § 41-3025.05)
DIFI
Established in 2020 by consolidating the Department of Financial Institutions and the Automobile Theft Authority into the Department of Insurance, DIFI is responsible for regulating the insurance industry, financial institutions, financial service professionals and business entities. DIFI registers and certifies state-chartered banks and credit unions and licenses financial and insurance professionals, including collection agencies, mortgage brokers, loan originators, premium finance companies and sales finance companies. DIFI conducts examinations on licensees and businesses and investigates fraud, deceptive practices, unprofessional conduct, claim delays and unfair claim settlement practices (A.R.S. Title 6).
The Senate Finance COR held a public meeting on Monday, January 27, 2025, to review the Auditor General's Performance Audit and Sunset Review Report, consider DIFI's responses to the statutorily outlined sunset factors and receive public testimony. The COR recommended that DIFI be continued with revisions (COR Report). DIFI terminates on July 1, 2025, unless continued by the Legislature (A.R.S. § 41-3025.02).
Health Profession Regulatory Boards
The Arizona Board of Behavioral Health Examiners is the regulatory body that oversees the licensing of licensed professional counselors, marriage and family therapists, addiction counselors and social workers in Arizona, consisting of 12 members appointed by the Governor. The Arizona Board of Behavioral Health Examiners terminates on July 1, 2025, unless continued by the Legislature (A.R.S. §§ 32-3252; 32-3253; and 41-3025.14).
BODEX is the regulatory body that oversees the licensing and practice of dental care in Arizona, consisting of 11 members appointed by the Governor. BODEX terminates on July 1, 2025, unless continued by the Legislature (A.R.S. §§ 32-1203; 32-1207; and 41-3025.09).
The Arizona Board of Osteopathic Examiners in Medicine and Surgery is the regulatory body that oversees the licensing and practice of osteopathic medicine in Arizona, consisting of seven members appointed by the Governor. The Arizona Board of Osteopathic Examiners in Medicine and Surgery terminates on July 1, 2025, unless continued by the Legislature (A.R.S. §§ 32-1801; 32-1803; and 41-3025.11).
The Arizona Board of Respiratory Care Examiners is the regulatory body that oversees the licensing and practice of respiratory care in Arizona, consisting of seven members appointed by the Governor. The Arizona Board of Respiratory Care Examiners terminates on July 1, 2025, unless continued by the Legislature (A.R.S. §§ 32-3502; 32-3504; and 41-3025.04).
The Senate and House of Representatives Health and Human Services Joint COR held a public meeting on January 17, 2025, to review and evaluate the Auditor General's performance audits and sunset reviews for each applicable board, consider each board's responses to the statutorily outlined sunset factors and receive public testimony. The COR recommended that the Arizona Board of Behavioral Health Examiners, BODEX, the Arizona Board of Osteopathic Examiners in Medicine and Surgery and the Arizona Board of Respiratory Care Examiners each be continued for six years until July 1, 2031 (COR Minutes).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
GRRC
1. Continues, retroactive to July 1, 2025, GRRC until July 1, 2029.
2. Repeals GRRC on January 1, 2030.
3. Requires GRRC staff to:
a) at the request of a council member, 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) electronically distribute all nonprivileged GRRC meeting materials to the Governor, Senate President and Speaker of the House at the same time the materials are distributed to GRRC members.
4. Exempts GRRC staff from the prohibition on a state agency employing legal counsel only for the purposes of GRRC rule review and allows GRRC staff to employ legal counsel and make an expenditure or incur an indebtedness for legal services to implement, advise or defend the requirement that GRRC staff advise GRRC on the constitutionality of a rule independent of an agency's statutory justification.
5. Modifies GRRC membership to consist of:
a) four members who are appointed by the Governor;
b) one member who is not a legislator and is appointed by the Senate President; and
c) one member who is not a legislator and is appointed by the Speaker of the House of Representatives.
6. Allows GRRC members currently serving to continue to serve until the end of their normal terms, at which point all subsequent appointments must be made according to statute.
7. Specifies that members of GRRC must be appointed for staggered terms of three years and may be reappointed.
8. Removes the requirement that a vacancy that occurs during the term of office of a member must be filled by appointment by the Governor.
9. Removes the membership criteria for members who are appointed by the Governor.
10. Limits GRRC's ability to vote to only during council meetings.
11. Requires GRRC, for all meetings that are open to the public for comment, to allot an equal amount of time to the individuals who support or oppose a rule.
12. Continues, retroactive to July 1, 2025, DIFI until July 1, 2033.
13. Repeals, subject to voter approval, DIFI on January 1, 2034.
Health Profession Regulatory Boards
14. Continues, retroactive to July 1, 2025, the Arizona Board of Behavioral Health Examiners until July 1, 2031.
15. Repeals the Arizona Board of Behavioral Health Examiners on January 1, 2032.
16. Continues, retroactive to July 1, 2025, BODEX until July 1, 2031.
17. Repeals BODEX on January 1, 2032.
18. Continues, retroactive to July 1, 2025, the Arizona Board of Osteopathic Examiners in Medicine and Surgery until July 1, 2031.
19. Repeals the Arizona Board of Osteopathic Examiners in Medicine and Surgery on January 1, 2032.
20. Continues,
retroactive to July 1, 2025, the Arizona Board of Respiratory Care Examiners until
July 1, 2031.
21. Repeals the Arizona Board of Respiratory Care Examiners on January 1, 2032.
Miscellaneous
22. Contains purpose statements.
23. Makes technical and conforming changes.
24. Becomes effective on the general effective date, with retroactive provisions as noted.
Amendments Adopted by Committee of the Whole
1. Continues each of the following health profession regulatory boards for six years until July 1, 2031:
a) BODEX;
b) Arizona Board of Osteopathic Examiners in Medicine and Surgery; and
c) Arizona Board of Respiratory Care Examiners.
2. Continues DIFI for eight years until July 1, 2033.
3. Continues GRRC for four years until July 1, 2029.
4. Modifies GRRC membership and membership appointment requirements.
5. Prescribes requirements for rule review by GRRC staff and allows GRRC staff to employ legal counsel only for the purposes of rule review for constitutionality on request by a member.
6. Outlines requirements for GRRC meetings including allowing GRRC to vote only at a council meeting.
HHS 2/13/25 DP 12-0-0-0 HHS 3/26/25 DP 7-0-0
3rd Read 2/26/25 45-13-2
Prepared by Senate Research
June 19, 2025
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