REQUEST TO ESTABLISH A CLEARANCCE LETTER SERVICES FEE FULL COST RECOVERY.DOCX

MARICOPA COUNTY SHERIFF’S OFFICE Memorandum
To: Chief. J. MacIntyre From: Capt. B. Roska #878
Bureau Commander Commander
Support Services II Judicial Enforcement Division
Subject: Authorization of a Date: 7/29/15
Sheriff’s Clearance Letter Services fee
Joseph M. Arpaio, Sheriff
Introduction:
The National Firearms Act of 1968 (NFA) defines a number of categories of regulated firearms. These weapons
are collectively known as NFA firearms (Class III) and include the following: machine guns, short-barreled rifles,
short barreled shotguns, suppressors (silencers). An act of Congress in the United States imposes a statutory
excise tax on the manufacture and transfer of certain firearms and mandates the registration of those firearms. The
Gun Control Act of 1968 ("GCA") additionally requires all transfers of ownership of registered NFA firearms
must be done through the federal NFA registry. The NFA also requires that permanent transport of NFA firearms
across state lines by the owner must be reported to the Bureau of Alcohol, Tobacco, Firearms and Explosives.
In compliance with these regulations the Bureau of Alcohol, Tobacco and Firearms (B.A.T.F.) of the U.S.
Department of Treasury requires that the Chief Law Enforcement Officer for the county in which an applicant for
a class III firearm resides certify:
I certify that I am the chief law enforcement officer of the organization named below having
jurisdiction in the area of residence of Maricopa County. I have no information indicating that the
transferee will use the firearm or device described on this application for other than lawful
purposes. I have no information that the receipt or possession of the firearm or device described
in item 4 would be place the transferee in violation of State or local law.
This declaration is required on B.A.T.F. form 1: Application to Make and Register a Firearm and B.A.T.F. form 4:
Application for Tax Paid Transfer and Registration of Firearm
Pursuant to A.R.S. §13-3121.A If a chief law enforcement officer's certification is required by federal law or
regulation for the transfer of a firearm, the chief law enforcement officer, within sixty days after receipt of a
request for certification by an applicant, shall provide the certification if the applicant is not prohibited by law
from receiving the firearm or is not the subject of a proceeding that could result in the applicant being prohibited
by law from receiving the firearm.
The Sheriff is the Chief Law Enforcement Officer in Maricopa County, and at his direction the Maricopa County
Sheriff’s Office A.T.F. certification letter unit is responsible for accepting and processing certification letter
requests from applicants.
There is currently no identified external funding source to contribute to expense of complying with this
requirement or address the yearly expenses incurred as the result of the mandated responsibilities of the Sheriff’s
Office concerning B.A.T.F. clearance letters.
A user service fee of $130.00 per certification letter request submitted would be utilized for the recovery of
various expenses (personnel, supplies, services, and capital) entailed in the development, enhancement and on-
going operation of the Sheriff’s Office A.T.F. clearance letters unit in complying with statutory mandated
responsibilities. The fee assessed by the Sheriff’s Office is on a limited user group who will contribute to the
funding necessary to support the processes for providing this service to residents of Maricopa County.
5000-135 R10-93 (MW97 v1.0 5/27/98)

Discussion:
The Sheriff’s Office has been the only agency in the County processing these documents since approximately
2007, prior to that the County Attorney Office had done them but stopped. The legislature enacted some changes
in the statute last session and that spurred some interest from other law enforcement (L.E.) to address these
requests however only Tempe PD has recently established a process only for residents of Tempe.
Currently all expenses to Maricopa County associated with compliance of State and Federal statutes are addressed
solely through tax revenues deposited into the general budget.
The County Board of Supervisors encourages county departments to pursue alternative revenue in lieu of
increasing taxation; and the citizens of Maricopa County, county departments, the Sheriff’s Office, and the Board
of Supervisors directly benefit from the use of alternative sources that support the continued development and
enhancement of Sheriff’s Office services.
There is currently no identified external funding source to contribute to expense of processing these requests for
clearance letters, which are required by the B.A.T.F. if a citizen desires to own that type of weapon or device.
For complying with statutory mandated responsibilities, a user service fee $130 per certification letter request
submitted by an applicant would be utilized for the recovery of various expenses (personnel, supplies, services,
and capital) entailed in the development, enhancement and on-going operation of the Sheriff’s Office A.T.F.
certification letter processing unit.
The steps in processing applications consist of the following and are required by AZ statute to be completed
within 60 days of initial submission to MCSO:
1. Sheriff’s Record Specialist (SRS):
a. Accepts application at MCSO public window. Applications can only be submitted in person by
the applicant themselves. All required documents must be submitted at that time and is reviewed
for completeness. Copies of the applicants AZ state issued identification and US citizenship
documents are made. Notary work is required on the B.A.T.F. forms and preformed (if necessary)
b. Runs computerized background check. Reviews accessible records, and prints copies for the file.
c. Contacts law enforcement agencies who have documented contact with the applicant and request
copies of reports, court records, etc…
d. Reviews records received/ submitted by other law enforcement agencies.
e. Verifies information self-disclosed by applicant against discovered background information.
f. Re-contacts applicant to request clarification of any self-disclosed information (if necessary).
g. Completes a written report of their findings/discoveries
2. SRS Supervisor- reviews work product of subordinate and verifies completeness and findings.
3. Sworn Lieutenant- Reviews completed applicant file, applies state and federal statutes, MCSO
requirements and makes a recommendation for issuance or denial of certification letter.
4. Sworn Captain- reviews applicant file and applies state and federal statutes, MCSO requirements and
makes a determination regarding issuance or denial of certification letter.
a. If denied applicant is notified by written correspondence as outlined in ARS13-3121.A
b. If approved file is forward to Deputy Chief for review and CLEO signature.
5. Deputy Chief –reviews applicant file and applies state and federal statutes, MCSO requirements and
makes a determination regarding issuance or denial of certification letter.
a. If a clearance letter is issued the file and signed letter returned to investigating SRS.
b. If denied the file returned to SRS for notification as outlined in ARS13-3121.A
6. SRS will finalize the processing of the request.

Additional steps not subject to the 60 day requirement:
7. Deputy required to transport deposits to bank (if fee implemented)
8. Auditing, financial reporting (if fee system is implemented)
Identified costs of fulfilling mandated statutory and MCSO requirements:
Employee Hourly rate (incl. fixed + variable costs) Time to process(hr.) Total cost
SRS $ 22.08 2.00 $ 44.16
SRS-supervisor $ 33.67 .25 $ 8.41
Lieutenant $ 73.23 .25 $ 18.30
Captain $ 94.17 .25 $ 23.54
Deputy Chief $ 108.50 .25 $ 27.12
Deputy $ 47.96 .05 $ 2.40
Miscellaneous Office supplies, computer, printer, etc… $ 1.00
Support costs Information technology, finance $ 5.00
Average total cost per applicant request (approx.) $129.93
-Personnel costs determined by MCSO-Finance section for F.Y. 2014-2015.
-Personnel cost will increase in future budget years.
-Miscellaneous & support cost are estimates
Applying a fee structure to historical data; cost recovery levels can be approximated. Below is an example of this
action using the last 3+ years of submissions in Maricopa County:
 B.A.T.F. form submitted to MCSO
2012 2013 2014 2015 (Jan-Jun)
Number of serialized weapons 486 212 140 88
 Cost recovery based on historical data:
Proposed Transaction Fee 2012 2013 2014 2015
$130 $ 63,180 $27,560 $18,200 $11,440*
We have seen an increase in the applications for 2015 and expect that trend to continue. If the program ever
returned to historical levels it is anticipated that the Clearance Letter Services fee program would eventually help
to fund a position for processing of the applications and; ensure compliance with statutorily imposed deadlines for
that processing.
Conclusion:
Constructing a fee structure will allow the Sheriff’s Office to minimize expenses to the tax payer, and establish a
cost recovery format for current and identified future expenses.
County Policies that guide this request are:
ARS: § 11-251.08. County fee for service authority; alternate fee schedule; fee limits; adoption procedures
A. In addition to any other county power or authority the board of supervisors may adopt fee schedules for any
specific products and services the county provides to the public. Notwithstanding fee schedules or individual
charges in statute, a board of supervisors may adopt an additional charge or separate individual charge.
B. Any fee or charge established pursuant to this section must be attributable to and defray or cover the expense of
the product or service for which the fee or charge is assessed. A fee or charge shall not exceed the actual cost
of the product or service.
C. Before adoption of a fee for service or an additional or separate charge pursuant to this section, the board of
supervisors shall hold a public hearing on the issue with at least fifteen days' published notice.
D. Nothing in this section shall apply to products and services provided to cities and towns.

County Budget policy: B1011 § V (B) (3). : Budgeting and Accountability Policy: Where appropriate, services
and programs will be supported by user fees. Fees should be developed based on current market conditions and on
full cost recovery, including Indirect Costs. Fees and fee revenue will be reviewed annually in conjunction with
the budget development process. Additional revenue from proposed fee increases may not be budgeted until fees
have been approved by the user.
Recommendations:
A service fee should be adopted that would allow for a sustainable and renewing funding source to recover some
of the expenses for current and projected future requirements upon M.C.S.O. for processing these requests. Fees
received would lessen the impact to the general tax payer and the general budget.
The decision to purchase a class III weapon is a voluntary one, and includes the voluntary decision to comply
with the legally imposed regulations and fees associated with that act. In exchange for complying with these fees
and regulations, the applicant receives a privilege not given to others, the ability to possess or transfer a class III
weapon.
The fee assessed by the Sheriff’s Office is on a limited user group and they will contribute to the funding
necessary to support appropriate services and associated regulatory activity for that group.
A service fee will contribute to the equipment and personnel necessary to comply with the 60 day deadline
required by state statute. Increased efficiency in the processing structure through personnel, computer and
peripheral replacement and upgrades is essential to the Sheriff’s Office success in providing high-quality service
to business owners, other government agencies, and the citizens of Maricopa County.