Assigned to RAGE AS PASSED BY COMMITTEE
ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
REVISED
AMENDED
FACT SHEET FOR S.B. 1037
health boards; fund balances; fees
Purpose
Requires a health profession regulatory board (health board) or nonhealth profession
licensing authority (licensing authority) 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. § 32-3201).
The Joint Legislative Budget Committee fiscal note estimates that S.B. 1037 would require
two agencies to adjust fee collections beginning in FY 2026. The Arizona Board of Barbering and
Cosmetology would be required to reduce fees by $379,000 and the Naturopathic Physicians
Medical Board would be required to reduce fees by $352,000. Some regulatory boards and
licensing agencies deposit a portion of licensing fees into the state General Fund. In FY 2026,
these fee reductions would result in a state General Fund revenue reduction of $129,000 (JLBC
fiscal note). FACT SHEET – Amended/Revised
S.B. 1037
Page 2
Provisions
1. Requires each health board or licensing authority 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 of its fees authorized in statute.
2. Requires the health board or licensing authority to ascertain and disclose its fund balance in
the public meeting.
3. Prohibits the fund balance from being more than two years of annual operating expenses plus
five percent (allowable amount).
4. Requires the health board or licensing authority, if the fund balance is more than the allowable
amount, to reduce or eliminate the licensing or application fees, or both, that are being charged
to the professionals under its jurisdiction until the fund balance is below the allowable amount.
5. Defines licensing authority as any Arizona agency, department, board or commission that
issues a license, permit, certificate or registration to an individual who provides a service to
any person in accordance with the professions and occupations title of statute.
6. Excludes, from the definition of licensing authority, the Board of Certified Reporters and
health profession regulatory boards.
7. Becomes effective on the general effective date.
Amendments Adopted by Committee
1. Includes licensing authorities to the fund balance and fee reduction requirements, rather than
only health boards.
2. Removes the authorization for a health board to maintain additional monies in its fund in the
amount of the last operational funding request if the Legislature does not approve its
operational funding request in that fiscal year's state budget.
3. Defines licensing authority as any Arizona agency, department, board or commission that
issues a license, permit, certificate or registration to an individual who provides a service to
any person in accordance with the professions and occupations title of statute.
4. Excludes, from the definition of licensing authority, the Board of Certified Reporters and
health profession regulatory boards.
5. Makes technical changes.
Revision
• Updates the fiscal impact statement. FACT SHEET – Amended/Revised
S.B. 1037
Page 3
Senate Action
RAGE 1/22/25 DPA 7-0-0
Prepared by Senate Research
February 5, 2025
JT/ci