Section R1-6-301. Five-year Review Report

A.      To submit a five-year review report for consideration by the Council, an agency shall deliver to the Council office an origi- nal cover letter signed by the agency head; one set of paper documents and one set of electronic documents, prepared in the manner required by this subsection and subsections (C) and (D). The agency shall ensure that the submission contains one paper copy and one electronic copy of the five-year review report required by A.R.S. § 41-1056, including rules made pursuant to an exemption, in whole or in part, from A.R.S. Title 41, Chapter 6. Consistent with subsection (B), the agency shall concisely analyze and provide the following information in the five-year review report in the following order for each rule:

1.        General and specific statutes authorizing the rule, includ- ing any statute that authorizes the agency to make rules;

2.        Objective of the rule, including the purpose for the exis- tence of the rule;

3.        Effectiveness of the rule in achieving the objective, including a summary of any available data supporting the conclusion reached;

4.        Consistency of the rule with state and federal statutes and other rules made by the agency, and a listing of the stat- utes or rules used in determining the consistency;

5.        Agency enforcement policy, including whether the rule is currently being enforced and, if so, whether there are any problems with enforcement;

6.        Clarity, conciseness, and understandability of the rule;

7.        Summary of the written criticisms of the rule received by the agency within the five years immediately preceding the five-year review report, including letters, memoranda, reports, written analyses submitted to the agency ques- tioning whether the rule is based on valid scientific or reliable principles or methods, and written allegations

Governor’s Regulatory Review Council

made in litigation or administrative proceedings in which the agency was a party that the rule is discriminatory, unfair, unclear, inconsistent with statute, or beyond the authority of the agency to enact, and the result of the liti- gation or administrative proceedings;

8.        A comparison of the estimated economic, small business, and consumer impact of the rule with the economic, small business, and consumer impact statement prepared on the last making of the rule or, if no economic, small business, and consumer impact statement was prepared on the last making of the rule, an assessment of the actual economic, small business, and consumer impact of the rule;

9.        Any analysis submitted to the agency by another person regarding the rule’s impact on this state’s business com- petitiveness as compared to the competitiveness of busi- nesses in other states;

10.     If applicable, how the agency completed the course of action indicated in the agency’s previous five-year review report;

11.     A determination after analysis that the probable benefits of the rule within this state outweigh the probable costs of the rule, and the rule imposes the least burden and costs to persons regulated by the rule, including paperwork and other compliance costs necessary to achieve the underly- ing regulatory objective;

12.     A determination after analysis that the rule is not more stringent than a corresponding federal law unless there is statutory authority to exceed the requirements of that fed- eral law;

13.     For a rule adopted after July 29, 2010, that requires issu- ance of a regulatory permit, license or agency authoriza- tion, whether the rule complies with A.R.S. § 41-1037; and

14.     Course of action the agency proposes to take regarding each rule, including the month and year in which the agency anticipates submitting the rules to the Council if the agency determines it is necessary to amend or repeal an existing rule, or to make a new rule. If no issues are identified for a rule in the report, an agency may indicate that no action is necessary for the rule.

B.       To avoid repetition, an agency shall use a narrative format rather than a tabular format to present the information in the report. The narrative shall be organized according to the cate- gories in subsection (A). For subsection (A)(2), the agency shall provide a specific objective, including the purpose for the existence of each individual rule. Within the remaining catego- ries, an agency shall analyze each rule individually or, if the analysis for each rule is the same, consolidate the analysis, either by article or for all rules in the report. If the analysis for a category is identical for all of the rules in a report, the agency shall specify that the analysis within that category applies to all of the rules in the report. If the analysis for a category is identical for all of the rules in an article, the agency shall spec- ify that the analysis within that category applies to all of the rules in the article.

C.      In addition to the documents required in subsection (A), an agency shall submit one paper copy and one electronic copy of the cover letter. The cover letter shall provide the following information:

1.        A person to contact for information regarding the report,

2.        Any rule that is not reviewed with the intention that the rule will expire under A.R.S. § 41-1056(J),

3.        Any rule that is not reviewed because the Council rescheduled the review of an article under A.R.S. § 41- 1056(H), and

4.        The certification that the agency is in compliance with

A.R.S. § 41-1091.

D.      In addition to the documents required in subsections (A) and (C), an agency shall submit one electronic copy of the follow- ing reference documents:

1.        Rules being reviewed;

2.        General and specific statutes authorizing the rules, including any statute that authorizes the agency to make rules; and

3.        If an economic, small business, and consumer impact statement was prepared on the last making of a rule being reviewed, the economic, small business, and consumer impact statement for the rule.

E.       After a five-year review report is placed on a Council agenda, Council staff shall review the report for compliance with the requirements of A.R.S. § 41-1056 and this Chapter and may ask questions or suggest changes to the agency. If the agency revises any document in response to a question or suggested change, the agency shall submit one paper copy and one elec- tronic copy of the revised document to the Council for review, according to the schedule established by R1-6-103.

F.       After a five-year review report is placed on a Council agenda, an agency may have the report moved to the agenda of a later meeting by having the agency head send a written notice to the Chair that includes the date of the later meeting. If the agency makes a subsequent request to have a five-year review report moved, the Chair may grant or deny the request at the Chair’s discretion.

G.      A person may submit written comments to the Council that are within the scope of subsection (A). The Council may also per- mit testimony at a Council meeting within the scope of subsec- tion (A).

Historical Note

Adopted effective April 3, 1996 (Supp. 96-2). Former Section R1-6-301 renumbered to R1-6-302; new Section R1-6-301 adopted by final rulemaking at 6 A.A.R. 8, effective December 8, 1999 (Supp. 99-4). Amended by

final rulemaking at 9 A.A.R. 5538, effective December 2, 2003 (Supp. 03-4). R1-6-301 renumbered to R1-6-501; new R1-6-301 renumbered from R1-6-111 and amended by final rulemaking at 19 A.A.R. 2731, effective October 5, 2013 (Supp. 13-3).