State Agency Fee Commission

Members Absent:

Sen. Frank Antenori

Sen. Jack Jackson

Staff Present:

Leah Koestner, OSPB Budget Analyst

1. Welcome & Introductions

Members of the Commission introduced themselves by stating their names and professional titles.

2. Review Commission Objectives.

John Arnold, OSPB Director briefly reviewed the statute that created the Commission, A.R.S. § 41-1008.01. Mr. Arnold also discussed how the downturn in the economy has created a shift in several agencies from being General Fund supported to being fee supported.

Representative Amanda Reeve, Chair of the Commission added her intentions when she ran H.B. 2314 in the 2011 Regular Session, including transparency.

Richard Bark, Vice Chair spoke about how the Commission should look at agencies as a whole, and not just specific fees.

3. Review and Action – Commission Bylaws

Representative Reeve, Chair, read the draft bylaws and asked for comments from the Commission.

There was discussion around the Conflict of Interest portion and whether or not it allows agency directors on the Commission to participate in the review of their agency.

The Commission also discussed the exemption of the 90-10 agencies. It was noted that the statute does not prevent 90-10s from being reviewed, and if the Commission would like to review a 90-10 agency, they could always amend the bylaws to make that possible.

Richard Bark moved that the bylaws be adopted.

John Halikowski seconded the motion.

The motion carried by a unanimous voice vote.

4. Selection of Agencies for Review in 2012

Spencer Kamps asked about the process for reviewing the agencies not exempted in the bylaws. Mr. Kamps also suggested that the process of developing fees, including the GRRC process should be reviewed.

John Halikowski mentioned that there are several statutory ways to create fees, and different agencies have different statutory abilities to create fees.

Representative Reeve suggested that the Commission will look at agencies individually, and look at each agency as a whole.

Sandra Fabritz-Whitney discussed the difference between reviewing authority to collect fees and the amount and use of fees.

Richard Bark, per the adopted bylaws, disclosed that the company he works for pays fees. Mr. Bark then talked about the four suggested agencies for review: the Department of Environmental Quality, the Department of Financial Institutions, the Land Department, and the Department of Weights and Measures

Mr. Bark moved that the Commission review the Department of Environmental Quality, the Department of Financial Institutions, the Land Department, and the Department of Weights and Measures in the following year’s report.

Basilio Aja seconded the motion.

The motion carried by a unanimous voice vote.

5. Call to the Public

No public comments.

6. Adjourn

The Committee adjourned at 4:20 pm.

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Prepared by OSPB 1

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