Read the full stored bill text
SB1501 - 572R - S Ver
Senate Engrossed
agencies; statutory
authority
State of Arizona
Senate
Fifty-seventh Legislature
Second Regular Session
2026
SENATE BILL 1501
AN
ACT
amending sections 41-1001.01 and 41-1048,
Arizona Revised Statutes; relating to administrative procedure.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it
enacted by the Legislature of the State of Arizona:
Section 1. Section 41-1001.01, Arizona Revised
Statutes, is amended to read:
START_STATUTE
41-1001.01.
Regulatory bill of rights; small businesses
A. To ensure fair and open regulation by state
agencies, a person:
1. Is eligible for reimbursement of fees and other
expenses if the person prevails by adjudication on the merits against an agency
in a court proceeding regarding an agency decision as provided in section 12-348.
2. Is eligible for reimbursement of the person's
costs and fees if the person prevails against any agency in an administrative
hearing as provided in section 41-1007.
3. Is entitled to have an agency not charge the
person a fee unless the fee for the specific activity is expressly authorized
as provided in section 41-1008.
4. Is entitled to receive the information and notice
regarding inspections and audits prescribed in section 41-1009.
5. May review the full text or summary of all
rulemaking activity, the summary of substantive policy statements and the full
text of executive orders in the register as provided in article 2 of this
chapter.
6. May participate in the rulemaking process as
provided in articles 3, 4, 4.1 and 5 of this chapter, including:
(a) Providing written comments or testimony on
proposed rules to an agency as provided in section 41-1023 and having the
agency adequately address those comments as provided in section 41-1052,
subsection D, including comments or testimony concerning the information
contained in the economic, small business and consumer impact statement.
(b) Filing an early review petition with the
governor's regulatory review council as provided in article 5 of this chapter.
(c) Providing written comments or testimony on rules
to the governor's regulatory review council during the mandatory sixty-day
comment period as provided in article 5 of this chapter.
7. Is entitled to have an agency not base a
licensing decision in whole or in part on licensing conditions or requirements
that are not specifically authorized by statute, rule or state tribal gaming
compact as provided in section 41-1030, subsection B.
8. Is entitled to have an agency not 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 as provided in section 41-1030,
subsection C.
9. Is entitled to have an agency not make a rule
under a specific grant of rulemaking authority that exceeds the subject matter
areas listed in the specific statute or not make a rule under a general grant
of rulemaking authority to supplement a more specific grant of rulemaking
authority as provided in section 41-1030, subsection D.
10. May allege that an existing agency practice or
substantive policy statement constitutes a rule and have that agency practice
or substantive policy statement declared void because the practice or
substantive policy statement constitutes a rule as provided in section 41-1033.
11. May file a complaint with the administrative
rules oversight committee concerning:
(a) A rule's, practice's or substantive policy
statement's lack of conformity with statute or legislative intent as provided
in section 41-1047.
(b) An existing statute, rule, practice alleged to
constitute a rule or substantive policy statement that is alleged to be
duplicative
,
or
onerous
or beyond an agency's statutory authority
as provided in
section 41-1048.
12. May have the person's administrative hearing on
contested cases and appealable agency actions heard by an independent
administrative law judge as provided in articles 6 and 10 of this chapter.
13. May have administrative hearings governed by
uniform administrative appeal procedures as provided in articles 6 and 10 of
this chapter and may appeal a final administrative decision by filing a notice
of appeal pursuant to title 12, chapter 7, article 6.
14. May have an agency approve or deny the person's
license application within a predetermined period of time as provided in
article 7.1 of this chapter.
15. Is entitled to receive written notice from an
agency on denial of a license application:
(a) That justifies the denial with references to the
statutes or rules on which the denial is based as provided in section 41-1076.
(b) That explains the applicant's right to appeal
the denial as provided in section 41-1076.
16. Is entitled to receive information regarding the
license application process before or at the time the person obtains an
application for a license as provided in sections 41-1001.02 and 41-1079.
17. May receive public notice and participate in the
adoption or amendment of agreements to delegate agency functions, powers or
duties to political subdivisions as provided in section 41-1026.01 and
article 8 of this chapter.
18. May inspect all rules and substantive policy
statements of an agency, including a directory of documents, in the office of
the agency director as provided in section 41-1091.
19. May file a complaint with the office of the
ombudsman-citizens aide to investigate administrative acts of agencies as
provided in chapter 8, article 5 of this title.
20. Unless specifically authorized by statute, may
expect state agencies to avoid duplication of other laws that do not enhance
regulatory clarity and to avoid dual permitting to the extent practicable as
prescribed in section 41-1002.
21. May have the person's administrative hearing on
contested cases pursuant to title 23, chapter 2 or 4 heard by an independent
administrative law judge as prescribed by title 23, chapter 2 or 4.
22. Pursuant to section 41-1009, subsection E,
may correct deficiencies identified during an inspection unless otherwise
provided by law.
B. The enumeration of the rights listed in
subsection A of this section does not grant any additional rights that are not
prescribed in the sections referenced in subsection A of this section.
C. Each state agency that conducts audits,
inspections or other regulatory enforcement actions pursuant to section 41-1009
shall create and clearly post on the agency's website a small business bill of
rights.� The agency shall create the small business bill of rights by selecting
the applicable rights prescribed in this section and section 41-1009 and
any other agency-specific statutes and rules. The agency shall
provide a written document of the small business bill of rights to the
authorized on-site representative of the regulated small
business. In addition to the rights listed in this section and
section 41-1009, the agency notice of the small business bill of rights
shall include the process by which a small business may file a complaint with
the agency employees who are designated to assist members of the public or
regulated community pursuant to section 41-1006. The notice
must provide the contact information of the agency's designated
employees. The agency notice must also state that if the regulated
person has already made a reasonable effort with the agency to resolve the
problem and still has not been successful, the regulated person may contact the
office of ombudsman-citizens aide.
END_STATUTE
Sec. 2. Section 41-1048, Arizona Revised
Statutes, is amended to read:
START_STATUTE
41-1048.
Committee review; duplicative, onerous or beyond authority;
rules, practices alleged to constitute rules and substantive policy statements
A. The committee shall receive complaints concerning
statutes, rules, agency practices alleged to constitute rules and substantive
policy statements that are alleged to be duplicative
,
or
onerous
or beyond an agency's statutory
authority
. The committee may review any statutes, rules,
agency practices alleged to constitute rules or substantive policy statements
alleged to be duplicative
,
or
onerous
or beyond an agency's statutory authority
and may
hold hearings regarding the allegations. The committee may comment
to an agency, the attorney general, the council or the legislature on whether
the statutes, rules, agency practices alleged to constitute rules or
substantive policy statements are duplicative
,
or
onerous
or beyond the agency's statutory
authority
. The comments may include committee recommendations
for alleviating the duplicative or onerous aspects of the statutes, rules,
agency practices alleged to constitute rules and substantive policy statements
or any aspects BEYOND the AGENCY'S STATUTORY
AUTHORITY
.
B. The committee shall prepare a report to the
legislature by December 1 of each year recommending legislation to alleviate
the effects of duplicative or onerous statutes, rules, agency practices alleged
to constitute rules and substantive policy statements
or statutes, rules, agency practices alleged to constitute rules and
substantive policy statements that are BEYOND AN AGENCY'S STATUTORY AUTHORITY
.
C. This section applies to all statutes, rules,
agency practices alleged to constitute rules and substantive policy statements,
regardless of whether the statutes, rules, agency practices alleged to
constitute rules or substantive policy statements were enacted or made before
or after January 1, 1996.
END_STATUTE