Assigned to COM & APPROP AS PASSED BY COW ARIZONA STATE SENATE Fifty-Fifth Legislature, Second Regular Session AMENDED FACT SHEET FOR H.B. 2741 state licensing; fee waiver Purpose Requires an agency to waive a first-time applicant's initial licensing fee if the applicant is the spouse of an active-duty service member or an honorably discharged veteran. Background Current statute requires an agency to waive any fee charged for an initial license for any individual applicant whose family income does not exceed 200 percent of the federal poverty guidelines if the individual is applying for that specific license in Arizona for the first time (A.R.S. § 41-1080.01). Statute defines license as any agency permit, certificate, approval, registration, charter or similar form of authorization that is required by law and that is issued by any agency for the purposes of operating a business in Arizona or to an individual who provides a service to any person where the license is necessary in performing that service. Statute defines agency as any Arizona state agency, department, board or commission or any political subdivision of Arizona that issues a license for the purposes of operating a business in Arizona or to an individual who provides a service to any person (A.R.S. § 41-1080). If the licensing fee waiver changes agency revenues, there may be a fiscal impact to the state General Fund (state GF). Provisions 1. Requires an agency to waive any fee charged for an initial license, if the individual is applying for that specific license in Arizona for the first time, for: a) any active military service member's spouse; and b) any honorably discharged veteran who has been discharged not more than two years before application. 2. Requires the Arizona Department of Administration (ADOA), by March 1 of each year, to report the total number of waived licensing fees by each agency to: a) the President of the Senate; b) the Speaker of the House of Representatives; c) the Joint Legislative Budget Committee; and d) the Governor's Office of Strategic Planning and Budgeting. 3. Requires the report to specify for which purpose the licensing fee was waived in accordance with statute. FACT SHEET – Amended H.B. 2741 Page 2 4. Makes conforming changes. 5. Becomes effective on the general effective date. Amendments Adopted by the Committee of the Whole 1. Eliminates the $300,000 appropriation from the state GF in each fiscal year to ADOA to reimburse an agency for licensing fee waivers. 2. Eliminates the requirement for an agency to apply to ADOA for reimbursement of licensing fees that the agency waived. 3. Requires ADOA, by March 1 of each year, to report the total number of waived licensing fees by each agency to: a) the President of the Senate; b) the Speaker of the House of Representatives; c) the Joint Legislative Budget Committee; and d) the Governor's Office of Strategic Planning and Budgeting. 4. Requires the report to specify for which purpose the licensing fee was waived in accordance with statute. 5. Makes conforming changes. House Action Senate Action MAPS 2/14/22 DP 15-0-0-0 COM 3/16/22 DP 8-1-0 APPROP 2/21/22 DP 13-0-0-0 APPROP 3/29/22 DP 10-0-0 3 rd Read 2/23/22 52-7-1 Prepared by Senate Research June 22, 2022 JT/CY/sr