HCR 2038 Arizona House · 57th Legislature - First Regular Session

rulemaking; legislative ratification; regulatory costs

HCR 2038 requires Arizona state agencies to submit proposed rules likely to increase regulatory costs by over $100,000 annually to the Office of Economic Opportunity for review. If costs exceed $500,000 within five years, the rule cannot take effect without legislative ratification through a separate bill. The bill also allows the legislature to eliminate rules costing taxpayers over $1 million yearly via concurrent resolution. It directly affects state agencies creating new regulations and the businesses/citizens regulated by those rules. The measure applies to most agency rules but excludes emergency rules and the Corporation Commission.

Issues: ✓ Budget & Taxes

Bill status introduced 1 of 4 stages cleared

Introduction

Jan 2025

Committee Review

Floor Vote

Governor

Introduced Jan 29, 2025 Last action Feb 19, 2025

Maddy AI version diff · 1 comparison

What changed between versions

Introduced Version → House Engrossed Version · 7 edits

MODERATE

The bill was converted from an introduced version to a House Engrossed version, which includes substantive policy changes. The most significant change is the removal of the requirement for agencies to submit proposed rules for review if they are estimated to increase regulatory costs by more than $100,000 within five years. The engrossed version only includes one section (41-1049.01) that allows the legislature to eliminate agency rules costing taxpayers more than $1,000,000 per year by concurrent resolution, and allows citizens or businesses to request an assessment of a rule's impact on taxpayers. The original introduced version had additional provisions requiring agencies to terminate proposed rules if not ratified by the legislature and allowing any person to request a review of proposed rules.

Scope change

The bill's scope was significantly narrowed. The introduced version included comprehensive rulemaking review requirements with cost thresholds and ratification processes, while the engrossed version only includes provisions for rule elimination and taxpayer impact assessments.

REQUIREMENT

Removed requirement for agencies to submit proposed rules for review if estimated to increase regulatory costs by more than $100,000 within five years

Removed requirement that proposed rules must be ratified by the legislature before becoming effective

Removed requirement for agencies to terminate proposed rulemaking if not ratified by the legislature during the current session

Changed the Office of Economic Opportunity's role from reviewing proposed rules to conducting assessments of existing rules' impact on taxpayers

ELIGIBILITY

Removed provision allowing any person to request the Office of Economic Opportunity to review a proposed rule

SECTION

Changed the bill from amending two sections (41-1049 and 41-1049.01) to only amending one section (41-1049.01)

DEFINITION

Added provision allowing citizens or businesses to request an assessment of a rule's impact on taxpayers

Floor votes

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Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Feb 19, 2025

Lower · Passed

DPA

lower

Feb 4, 2025

Lower · Passed

DPA

lower

1 primary · 0 co-sponsors