ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature

First Regular Session

Senate:  COM DP 5-0-2-0 | 3rd Read 16-14-0-0

House: RA DP 4-3-0-0

SB 1087: professional licensure fees; waiver; reduction

Sponsor: Senator Kern, LD 27

Caucus & COW

Overview

Requires a regulatory board or agency (regulatory entity) to waive or reduce its license or certification fees when its licensing fund exceeds 50% of its appropriation for the same fiscal year.

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteHistory

Arizona's professions and occupations are regulated by boards and commissions charged with protecting the health, welfare and safety of its citizens through licensing, certification and registration. Title 32 contains the laws related to the various professions and occupations, while Title 36 comprises public health and safety laws. The statutes are generally divided into three categories as follows:

1)   Article 1 - establishes the regulatory entity, membership qualifications, powers, duties and responsibilities;

2)   Article 2 – prescribes the training and education requirements to qualify for licensure; and

3)   Article 3 - outlines disciplinary and non-disciplinary actions the regulatory entity may take to enforce standards of practice, such as continuing education, letter of censure, license suspension or license revocation.

In general, an agency cannot charge or receive a fee without specific statutory authority (A.R.S. § 41-1008.) Regulatory entities are funded by user fees and most are 90/10 entities, since 90% of revenue is retained by the regulatory entity and the remaining 10% is transferred to the state General Fund. 

 

Provisions

1.   Requires, by September 1 each year, the regulatory entity to review pertinent fees and costs to determine if its year-end licensing fund balance will exceed 50% of its current fiscal year appropriation. Items for review include monies in the fund, incurred costs and collected fee revenues.  (Sec. 2)

2.   Outlines the procedures the regulatory entity should follow if the ending balance in the licensing fund exceeds 50% of its appropriation as follows:

a)   requires a one-time fee waiver or reduction in license or certificate renewal fees for the upcoming fiscal year or within the normal renewal cycle if longer than one year, to reduce the licensing fund balance to below the 50% appropriation amount;   

b)   in determining the amount of waiver or reduction, directs the regulatory entity to ensure existing licensees or certificate holders receive one waiver or reduction and that fees for new licensees or certificate holders are waived or reduced the next fiscal year;

c)   requires the regulatory entity to attempt to reduce fees the same for initial and renewal licenses and certificates;

d)   allows a temporary reduction or waiver of initial or renewal license or certification fees; and

e)   by July 1 each fiscal year, outlines notification to existing licensees and certificate holders of an intention to reduce or waive license fees along with the expected amount, which must be prominently noted on the regulatory entity's website.  (Sec. 2)

3.   Instructs each regulatory entity to report its fee plan by September 1 annually, to the Governor, President of the Senate and Speaker of the House of Representatives. (Sec. 2)

4.   Lists the minimum requirements a report of fee plan must include as follows:

a)   the amount of revenues and expenditures expected in the current fiscal year;

b)   the projected ending balances for the licensing fund; and

c)   the justification for how the regulatory entity's waiver or reduction plan will achieve required fee reductions. (Sec. 2)

5.   Allows a regulatory entity that believes it will require one-time monies greater than 50% of its annual appropriation for one-time capital, information technology or similar costs to include a report of the expected need in its budget estimate submission to the Governor. (Sec. 2)

6.   Applies the provisions to chapters of law that regulate professions and occupations as follows:

a)   State Board of Technical Registration (Title 32, Ch. 1)

b)   Barbering and Cosmetology Board (covers two chapters of law – Title 32, Ch. 3, 5)

c)   Arizona State Board of Accountancy (Title 32, Ch. 6)

d)   Board of Podiatry Examiners (Title 32, Ch. 7)

e)   Board of Chiropractic Examiners (Title 32, Ch. 8)

f) Registrar of Contractors (Title 32, Ch. 10)

g)   State Board of Dental Examiners (Title 32, Ch. 11)

h)   State Board of Funeral Directors and Embalmers (Title 32, Ch. 12)

i)   Arizona Medical Board (also Physician Assistants – Title 32, Ch. 13, 25)

j)   Naturopathic Physicians Medical Board (Title 32, Ch.14)

k)   State Board of Nursing (Title 32, Ch. 15)

l)   State Board of Dispensing Opticians (Title 32, Ch. 15.1)

m) State Board of Optometry (Title 32, Ch. 16)

n)   AZ Board of Osteopathic Examiners in Medicine and Surgery (Title 32, Ch. 17)

o)   Arizona State Board of Pharmacy (Title 32, Ch. 18)

p)   Board of Physical Therapy (Title 32, Ch. 19)

q)   State Board of Psychologist Examiners (Title 32, Ch. 19.1)

r) Arizona State Veterinary Medical Examining Board (Title 32, Ch. 21)

s)   Board of Homeopathic and Integrated Medicine Examiners (Title 32, Ch. 29)

t) State Board for Private Postsecondary Education (Title 32, Ch. 30)

u)   Board of Behavioral Health Examiners (Title 32, Ch. 33)

v)   Board of Occupational Therapy Examiners (Title 32, Ch. 34)

w) Board of Respiratory Care Examiners (Title 32, Ch. 35)

x)   Acupuncture Board of Examiners (Title 32, Ch. 39)

y)   Board of Athletic Training (Title 32, Ch. 41)

z)   Board of Massage Therapy (Title 32, Ch. 42)

aa) Board of Examiners Nursing Care Institution Administrators and Assisted Living Facility Managers (Title 36, Ch. 4, Art. 6) (Sec. 2)

 

7.   Makes a conforming change. (Sec. 1)

 

 

 

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                        SB 1087

Initials DC       Page 0 Caucus & COW

 

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