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ARIZONA STATE SENATE
Fifty-Fourth Legislature, First Regular Session
AMENDED
state agencies; fee increase; limit
Purpose
Prohibits a state agency from increasing a fee by more than the percentage change in the average consumer price index (CPI) between the most recent calendar year and the calendar year in which the fee was last increased, unless certain criteria are met.
Background
State agencies may only charge a fee or make a rule establishing a fee if expressly authorized by statute. State agencies must comply with all rulemaking requirements to establish or increase a statutorily-authorized fee, unless specifically exempted from rulemaking requirements by the Legislature. A fee established or increased by exempt rulemaking is effective for two years. When a fee is established, the state agency must identify the statute that authorizes the fee on any documents relating to the collection of the fee (A.R.S. § 41-1008).
The CPI is a measure of the average change in the prices paid for a market basket of consumer goods and services as calculated monthly by the U.S. Department of Labor Bureau of Labor Statistics. The market basket is determined by expenditure information of goods and services purchased by families and individuals (Bureau of Labor Statistics).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Prohibits a state agency from increasing a fee in an amount that exceeds the percentage of change in the average CPI between the most recent calendar year and the calendar year in which the fee was last increased.
2. Specifies that a state agency can increase a fee in an amount that exceeds the percentage change in the average CPI if either:
a) the agency submits the fee increase to the Joint Legislative Budget Committee (JLBC) for review before the fee is increased; or
b) the agency is required to submit an annual report including information about the fee to members of the Legislature.
3. Becomes effective on the general effective date.
Amendments Adopted by Committee of the Whole
· Subjects state agency fee increases to prior JLBC review, rather than JLBC approval, if the fee increase exceeds the percentage of change in the average CPI between the most recent year and the year in which the fee was last increased.
Amendments Adopted by the House of Representatives
· Authorizes a state agency to increase a fee in an amount that exceeds the percentage of change in the average CPI if the agency either submits the proposed fee increase to the JLBC for review or is required to submit an annual report to the Legislature that includes information about the fee.
Senate Action House Action
GOV 2/11/19 DP 4-3-0 GOV 3/28/19 DPA 6-5-0-0
3rd Read 3/4/19 17-13-0 APPROP 4/3/19 DP 6-5-0-0
3rd Read 5/24/19 31-29-0
Prepared by Senate Research
May 24, 2019
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