Committee advances bill to require agency rule cost reviews, legislative ratification for higher-cost rules
Summary
House Bill 2632, directing agencies to submit rules estimated to cost more than $100,000 in five years to the Office of Economic Opportunity and requiring legislative ratification for rules over specified thresholds, received a due-pass recommendation from the committee by a 3-2 vote after extended debate.
House Bill 2632 received a due-pass recommendation from the Arizona House Committee on Regulatory Oversight after extended debate about regulatory scope, voter sentiment and legislative oversight. The committee recorded 3 ayes and 2 nays.
A committee staff member summarized that HB 2632 would require agencies to submit proposed rules to the Office of Economic Opportunity if a rule is estimated to cost the state more than $100,000 within five years. The bill would require legislative ratification for agency rules estimated to cost more than $500,000 over five years and authorizes the Legislature, by concurrent resolution, to eliminate any agency rule that costs taxpayers more than $1,000,000 annually. Staff also noted the bill contains a separability clause.
The bill sponsor framed HB 2632 as responding to voter concerns about the “administrative state” and said the measure would restore an opportunity for elected representatives to remove costly agency rules imposed without direct legislative action. The sponsor also linked the measure to a prior proposed constitutional amendment—the sponsor said prior HCR language was confusing to voters and that clearer statutory language may succeed.
Opponents said the bill could be interpreted as adding more regulation rather than reducing it and raised concerns about whether the committee’s purpose is to reduce regulatory burden. Several members said they would vote against the bill for that reason. Supporters argued the bill returns authority to elected representatives to eliminate expensive rules that function like taxes.
The roll call recorded: Representative Keshle — Aye; Representative Collin — Aye; Chairman Chapnick — Aye; Representative Contreras — No; Representative Hernandez — No. By that vote, 3 ayes, 2 nays, HB 2632 received a due-pass recommendation from the committee.
The text reported to the committee sets dollar thresholds ($100,000; $500,000; $1,000,000) for OEO review and legislative action; the process would allow citizens and businesses affected by agency rules to request OEO review. Further floor debate may change the bill’s thresholds or process details.
