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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
FACT SHEET FOR S.B. 1037
health boards; fund balances; fees
Purpose
Requires a health profession regulatory board (health board) to temporarily reduce or
eliminate licensing or application fees if its fund balance exceeds a prescribed amount.
Background
To practice or perform a regulated occupation or profession or use certain occupational or
professional titles in Arizona, a person must meet certain qualifications and apply to the designated
regulatory entity for the license, certificate or authorization. The initial application and renewal
processes, including initial and renewal licensing or certification fees, vary across professions and
occupations (A.R.S. Title 32 and Title 36).
A health board is any board that regulates one or more health professionals in Arizona. A
health professional incudes a person who is certified or licensed by the following health boards:
1) Arizona State Board of Podiatry Examiners; 2) Arizona State Board of Chiropractic Examiners;
3) Arizona State Board of Dental Examiners; 4) Arizona Medical Board; 5) Arizona Naturopathic
Physicians Medical Board; 6) Arizona Board of Nursing; 7) Arizona State Board of Dispensing
Opticians; 8) Arizona State Board of Optometry; 9) Arizona Board of Osteopathic Examiners in
Medicine and Surgery; 10) Arizona State Board of Pharmacy; 11) Arizona State Board of Physical
Therapy; 12) Arizona State Board of Psychologist Examiners; 13) Arizona State Veterinary
Medical Examining Board; 14) Arizona Regulatory Board of Physician Assistants; 15) Arizona
Board of Homeopathic and Integrated Medicine Examiners; 16) Arizona State Board of Behavioral
Health Examiners; 17) Arizona Board of Occupational Therapy Examiners; 18) Arizona State
Board of Respiratory Care Examiners; 19) Arizona Acupuncture Board of Examiners; 20) Arizona
State Board of Athletic Training; 21) Arizona State Board of Massage Therapy; and 22) Arizona
Board of Examiners of Nursing Care Institution Administrators and Assisted Living Facility
Managers (A.R.S. ยง 32-3201).
If temporarily reducing or eliminating licensing or application fees results in a change in
revenues collected from fees that are otherwise directed to the state General Fund, there may be a
fiscal impact to the state General Fund.
Provisions
1. Requires each health board to review, in a public hearing at least once each fiscal year and
before establishing the amount of any fee for the subsequent fiscal year, the amount of each
fee authorized in the health board's statutes.
2. Requires the health board to ascertain and disclose its fund balance in the public meeting. FACT SHEET
S.B. 1037
Page 2
3. Prohibits the fund balance from being more than two years of the health board's annual
operating expenses plus five percent (allowable amount).
4. Requires the health board, if the fund balance is more than the allowable amount, to reduce or
eliminate licensing or application fees, or both, that are being charged to the health professional
under its jurisdiction until the fund balance is below the allowable amount.
5. Allows a health board to maintain additional monies in the fund in the amount of the last
operational funding request if the Legislature did not approve its operational funding request
in that fiscal year's state budget.
6. Becomes effective on the general effective date.
Prepared by Senate Research
January 17, 2025
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