What does the legislation outline regarding the disposition of fees?

The correct choice highlights that fees and supply forms are managed by the state. This aligns with the overarching principles of regulatory frameworks, where state agencies manage the processing and distribution of fees related to licensing and permits. When handling manufactured housing licensing, it is essential for the state to oversee these fees to ensure proper allocation, transparency, and adherence to established guidelines. This oversight helps prevent financial discrepancies and supports the infrastructure necessary for the administration of housing regulations.

The other options do not accurately reflect the established norms regarding fee management. For example, retaining fees by the applicant would undermine the state's regulatory role, and refunding fees upon request could disrupt the necessary funding for the regulatory processes. Additionally, voiding fees upon application approval contradicts the principle that fees serve a purpose within the regulatory framework.