A. Each standing committee of both legislative houses shall constitute a committee of reference in the committee’s respective subject matter areas and the committee’s respective house.

B. After receipt of the preliminary sunset review report, each committee of reference or each committee of reference meeting jointly shall hold at least one public hearing when the legislature is not in session or before the third Friday in January to receive testimony from the public and from the officials of the agency involved. The agency involved shall prepare a presentation for the first public meeting that addresses the elements of the written statement required by subsection G of this section.

C. Each committee of reference shall hold public hearings for the following purposes:

1. To determine the actual need of the agency to regulate or direct the particular activity.

2. To determine the extent to which the statutory requirements of the agency are necessary and are being met.

3. To receive testimony from the public as to the relationship of the agency with the public.

4. To receive testimony from the executive director or other head of the agency as to reasons for the continuation of the agency.

D. Each committee of reference shall consider but not be limited to the following factors in determining the need for continuation or termination of each agency:

1. The key statutory objectives and purposes in establishing the agency.

2. The agency’s effectiveness and efficiency in fulfilling its key statutory objectives and purposes.

3. The extent to which the agency’s key statutory objectives and purposes duplicate the objectives and purposes of other governmental agencies or private enterprises.

4. The extent to which rules adopted by the agency are consistent with the legislative mandate.

5. The extent to which the agency has provided appropriate public access to records, meetings and rulemakings, including soliciting public input in making rules and decisions.

6. The extent to which the agency timely investigated and resolved complaints that are within its jurisdiction.

7. The extent to which the level of regulation exercised by the agency is appropriate as compared to other states or best practices, or both.

8. The extent to which the agency has established safeguards against possible conflicts of interest.

9. The extent to which changes are necessary for the agency to more efficiently and effectively fulfill its key statutory objectives and purposes or to eliminate statutory responsibilities that are no longer necessary.

10. The extent to which the termination of the agency would significantly affect the public health, safety or welfare.

E. Each committee of reference that reviews an agency that administers an occupational regulation shall consider but not be limited to the following factors in determining the need for continuation or termination of each agency:

1. The extent to which the occupational regulation meets the requirements of section 41-3502.

2. The extent to which failure to regulate a profession or occupation will result in:

(a) The loss of insurance.

(b) An impact to the ability to practice in other states or as required by federal law.

(c) An impact to the required licensure or registration with the federal government.

(d) The loss of constitutionally afforded practices.

F. The committee of reference shall deliver the final sunset review report of its recommendations to the president of the senate, the speaker of the house of representatives, the governor, the auditor general and the affected agency on or before the third Friday in January. The recommendations shall include one or more of the following:

1. That the state agency be continued.

2. That the state agency be revised or consolidated.

3. That the state agency be terminated pursuant to this chapter.

4. If the state agency administers an occupational regulation, that the legislature:

(a) Repeal the occupational or professional license.

(b) Convert the occupational or professional license to a less restrictive regulation as defined in section 41-3501.

(c) Instruct the state agency to seek legislation or adopt rules to reflect the committee of reference’s recommendation to:

(i) Impose less restrictive regulations than occupational or professional licenses.

(ii) Change the requisite personal qualifications of an occupational or professional license.

(iii) Redefine the scope of practice in an occupational or professional license.

G. The final sunset review report by each committee of reference shall also include a written statement prepared by the agency involved that contains an assessment of:

1. The extent to which the agency potentially creates unexpected negative consequences that may require additional review by the committee of reference, including increasing the price of goods, affecting the availability of services, limiting the abilities of individuals and businesses to operate efficiently and increasing the cost of government.

2. The extent to which the agency has addressed deficiencies in its enabling statutes.

3. The extent to which the agency has determined whether the attorney general or any other agency in this state has the authority to prosecute or initiate actions.

4. The consequences of eliminating the agency or of consolidating it with another agency.

H. Each committee of reference shall oversee the preparation of any proposed legislation to implement the recommendations of that committee of reference and is responsible for the introduction of such legislation.

I. If an agency is continued, it is not necessary to reappoint any member of the governing board or commission of the agency. Such members are eligible to complete their original terms without reappointment or reconfirmation.

J. Each committee of reference shall have the power of legislative subpoena pursuant to chapter 7, article 4 of this title.

K. For the purposes of this section, "less restrictive regulation", "occupational or professional license" and "personal qualifications" have the same meanings prescribed in section 41-3501.