Audit finds tracking, meeting‑record weaknesses at regulatory review council; committee recommends 4‑year continuation

The Arizona House Government Committee on Tuesday heard a performance audit from the Auditor General's Office that found the Governor's Regulatory Review Council lacked formal tracking for rule reviews, sent some late notices for statutorily required five‑year reviews and failed to include required details in some executive‑session recordings.

The finding came as George Styles, a partner at the consulting firm that conducted the review under contract to the Auditor General, summarized the audit and its six recommendations. "The lack of a formal tracking process for all rule review requests increases the risk that it could miss rule review requests or that reviews may not be completed on time," Styles said.

Why it matters: The council reviews agency rule‑making packages and five‑year reviews intended to ensure administrative rules remain necessary and consistent with statute. Delays or missed notices can allow outdated or noncompliant rules to remain in effect for longer than intended, the audit said.

In the presentation, Styles told the committee the council completed most rule reviews within the 120‑day statutory window for rule‑making packages but that 5‑year report reviews sometimes exceeded similar benchmarks. The audit found 25 of 129 five‑year reports reviewed between 2021 and 2023 took longer than 120 days, with one taking 488 days.

Simon Larcheidt, a staff attorney for the Governor's Regulatory Review Council, answered the committee and described the council's corrective steps. "As of August 2024," Larcheidt said, "the council implemented separate tracking for all steps in the council's rulemaking review process" and consolidated notice and due‑date information into a single spreadsheet to prevent notices from being missed.

The audit also cited problems with executive‑session recordings, saying some lacked required details such as meeting date, time, place and attendance. Styles said the council updated its script for executive sessions in April 2024 to address confidentiality notices and recording consistency.

Committee members pressed staff on practical details. Representative Rachel Keshle asked whether the Auditor General's team could be sure five‑year reports were actually completed when the council failed to send timely notice. Styles said his team sampled reports and verified the selected items had been completed.

Action: Committee chair Representative Ben Blackman proposed shortening the council's review interval from eight years to four to increase oversight. The motion to recommend continuation of the Governor's Regulatory Review Council for four years was made and carried by the committee; the committee's roll call recorded the motion as approved (ayes: 4, nays: 3).

Next steps: The council agreed with the audit's recommendations and told the committee it would implement written procedures and the tracking changes. The Auditor General's Office said it will perform a six‑month follow‑up to monitor implementation.

The council provides a centralized check on agency rule making and on five‑year reviews statewide; the committee's recommendation will move to the full House for consideration.