A. Monies received by the board, other than those referred to in
section 3-1003, subsection A, paragraph 9 and other than those received by
the board as ticket sales pursuant to a valid lease of the coliseum, shall
be deposited promptly with the state treasurer, who shall credit the deposits
to the Arizona coliseum and exposition center fund
B. Disbursements from
C. There is established a coliseum and exposition center board
permanent revolving fund for use in making change at fairs and for purchases
and activities requiring immediate cash outlay for events sponsored by the
Arizona coliseum and exposition center board
Sec. 2. Section 5-113, Arizona Revised Statutes, as amended by Laws 1996, chapter 353, section 2, is amended to read:
A. All revenues derived from permittees, permits and licenses, as provided by this article, and all monies transferred pursuant to section 44-323, subsection A shall be paid to the state treasurer, who shall distribute the revenues and monies as follows:
1. Eight hundred thousand dollars or twenty-two per cent, whichever is less, shall be credited to the Arizona county fairs racing betterment fund established by subsection B of this section.
2. One million two hundred thousand dollars or thirty-three per cent, whichever is less, shall be credited to the county fairs livestock and agriculture promotion fund established by subsection C of this section.
3. Eight hundred thousand dollars or twenty-two per cent, whichever is less, shall be credited to the Arizona breeders' award fund established by subsection F of this section.
4. Forty thousand dollars or one per cent, whichever is less, shall be credited to the Arizona stallion award fund established by subsection G of this section.
5. Three hundred thousand dollars or nine per cent, whichever is less, shall be credited to the county fair racing fund established by subsection I of this section.
6. One per cent of the revenues and monies shall be credited to the agricultural consulting and training fund established by subsection J of this section.
7. Forty-five thousand dollars or one per cent, whichever is less,
shall be
8. Four hundred thousand dollars or eleven per cent, whichever is less, shall be credited for capital outlay to the Arizona coliseum and exposition center fund established by section 3-1005.
9. Any revenues and monies remaining unexpended at the end of the fiscal year after the distributions made in paragraphs 1 through 8 of this subsection shall be deposited in the state general fund.
B. The Arizona county fairs racing betterment fund is established under the jurisdiction of the department. The department shall distribute monies from the fund to the county fair association or county fair racing association of each county conducting a county fair racing meeting in such proportion as the department deems necessary for the promotion and betterment of county fair racing meetings. All expenditures from the Arizona county fairs racing betterment fund shall be made upon claims approved by the department. In order to be eligible for distributions from the fund, a county fair association must provide the department with an annual certification in the form required by the department supporting expenditures made from the Arizona county fairs racing betterment fund.
C. The county fairs livestock and agriculture promotion fund is established under the control of the governor and shall be used for the purpose of promoting the livestock and agricultural resources of the state and for the purpose of conducting an annual Arizona national livestock fair by the Arizona coliseum and exposition center board to further promote livestock resources. The direct expenses less receipts of the livestock fair shall be paid from this fund, but such payment shall not exceed thirty per cent of the receipts of the fund for the preceding fiscal year. All expenditures from the county fairs livestock and agriculture promotion fund shall be made upon claims approved by the governor, as recommended by the livestock and agriculture committee, for the promotion and betterment of the livestock and agricultural resources of this state. The livestock and agriculture committee is established and shall be composed of the following members appointed by the governor:
1. Three members representing county fairs.
2. One member representing Arizona livestock fairs.
3. One member representing the university of Arizona college of agriculture.
4. One member representing the livestock industry.
5. One member representing the farming industry.
6. One member representing the governor's office.
7. One member representing the Arizona state fair conducted by the Arizona coliseum and exposition center board.
8. One member representing the general public.
Not less than three members shall be from counties of under five hundred thousand population.
D. The governor shall appoint a chairman from the members. Terms of members shall be four years.
E. Members of the committee are not eligible to receive compensation but are eligible to receive reimbursement for expenses pursuant to title 38, chapter 4, article 2.
F. The Arizona breeders' award fund is established under the jurisdiction of the department. The department shall distribute monies from the fund to the breeder, or the breeder's heirs, devisees or successors, of every winning horse or greyhound foaled or whelped in this state, as defined by section 5-114, in a manner and in an amount established by rules of the commission to protect the integrity of the racing industry and promote, improve and advance the quality of race horse and greyhound breeding within this state. Persons who are not eligible to be licensed under section 5-107.01 or persons who have been refused licenses under section 5-108 are not eligible to participate in the Arizona greyhound breeders' award fund. For the purposes of this subsection, "breeder" means the owner or lessee of the dam of the animal at the time the animal was foaled or whelped.
G. The Arizona stallion award fund is established under the jurisdiction of the department to promote, improve and advance the quality of stallions in this state. The department shall distribute monies from the fund to the owner or lessee, or the owner's or lessee's heirs, devisees or successors, of every Arizona stallion whose certified Arizona bred offspring, as prescribed in section 5-114, finishes first, second or third in an eligible race in this state. The commission shall adopt rules pursuant to title 41, chapter 6 to carry out the purposes of this subsection. The rules shall prescribe at a minimum:
1. The manner and procedure for distribution from the fund, including eligibility requirements for owners and lessees.
2. Subject to availability of monies in the fund, the amount to be awarded.
3. The requirements for a stallion registered with the jockey club, Lexington, Kentucky or with the American quarter horse association, Amarillo, Texas to be certified as an Arizona stallion.
4. The types and requirements of races for which an award may be made.
H. The greyhound adoption fund is established in the state treasury. The department shall administer the fund. The state treasurer shall credit to the fund twenty-five per cent of the revenues derived from license fees collected from dog breeders, racing kennels and other operations pursuant to section 5-104, subsection F, paragraphs 7, 8 and 9. The department shall distribute monies from the fund to provide financial assistance to nonprofit enterprises approved by the commission to promote the adoption of former racing greyhounds as domestic pets pursuant to section 5-104, subsection G in a manner and in an amount established by rules of the commission.
I. The county fair racing fund is established in the state treasury. The department shall administer the fund. Subject to legislative appropriation, the department shall use fund monies for the administration of county fair racing. Any monies remaining unexpended in the fund at the end of the fiscal year in excess of seventy-five thousand dollars shall revert to the state general fund.
J. The agricultural consulting and training fund is established in the
state treasury. The Arizona department of agriculture shall administer the
fund. Subject to legislative appropriation, the Arizona department of
agriculture shall use monies in the fund for the agricultural consulting and
training program established by section 3-109.01.
Sec. 3. Section 23-981, Arizona Revised Statutes, is amended to read:
A. There is established the state compensation fund which shall be
maintained for the purpose of insuring employers against liability for
workers' compensation, occupational disease compensation and medical,
surgical and hospital benefits pursuant to the provisions of chapter 5 of
this title and this chapter, and pursuant to the federal longshoremen's and
harbor workers' compensation act, the federal coal mine health and safety act
of 1969, as amended, and
B. The assets of the state compensation fund consist of all premiums
paid into the fund, all real and personal property, securities and all income
and interest earned upon monies belonging to the fund.
C. A manager shall administer the state compensation fund, subject to
the authority of the board of directors, without liability of the state. The
fund shall be applied to insurance and to payment of compensation and
expenses as provided in this chapter. The manager has full authority over
the fund and may do all things necessary or convenient in the administration
of the fund, or in connection with the compensation business to be carried
on by the manager under this chapter, may adopt rules for the collection,
maintenance and disbursement of the fund
D. The state compensation fund has the powers and privileges of a
corporation and in its name may sue and be sued. The manager, in the
administration of the fund, may lease or acquire real property and acquire
or construct buildings or other improvements on the property as are necessary
to house, contain and maintain offices and space for its departmental and
operational facilities. Title to the real estate, buildings and improvements
vests in the state compensation fund. The manager may lease or rent space
not needed for the fund's immediate requirements. Any real and personal
property owned by the state compensation fund is subject to ad valorem taxes.
E. The operating and capital outlay budget of the state compensation
fund
Sec. 4. Section 28-3398, Arizona Revised Statutes, is amended to read:
A. A defensive driving school fund is established in the state
treasury consisting of monies collected for the fee established by the
supreme court pursuant to section 28-3397.
B. The state treasurer shall transfer the monies in the fund on the
last day of each month to the supreme court to be used
C. The fund established in this section is not subject to reversion.
On notice from the supreme court, the state treasurer may invest and divest
monies in the fund as provided by section 35-313. The state treasurer shall
credit all interest earned on the fund monies to the fund.
Sec. 5. Section 28-7006, Arizona Revised Statutes, is amended to read:
A. A transportation department equipment fund is established in the
state treasury that consists of:
1. Monies appropriated by the legislature to the department for the
purchase, maintenance, service or repair of equipment and consumable
material, including monies appropriated to pay salaries, wages and benefits
of department employees engaged in maintaining, servicing or repairing
equipment or supervising these activities.
2. Monies received by the department from the sale of equipment and
consumable material at public auction or by other disposal methods provided
by law.
3. Monies credited and transferred to the fund pursuant to subsection
C of this section for the use of consumable material and for the use or
servicing of equipment.
4. Monies received from insurance recoveries for equipment and
consumable material losses.
5. Monies received from donations.
6. Monies received from the United States as reimbursement to provide
aid for the use of equipment and consumable materials in the construction,
maintenance or repair of transportation improvements.
7. Earnings on any monies in the transportation department equipment
fund that are invested pursuant to section 28-6996.
B. The director shall establish and from time to time modify or adjust
the equipment rental schedule and the other fee schedule to reflect all
current costs of ownership, maintenance, operation and service of equipment, including the costs of labor and supervision and consumable materials used
in the equipment.
C. Department equipment shall not be used for any purpose and the
department shall not incur an expense in the maintenance, service or repair
of equipment unless within thirty days after the end of any month in which
equipment is used or the expenses are incurred both:
1. The appropriate project, program, section, division, activity or
budget unit is charged for the use pursuant to the equipment rental schedule
or other fee schedule.
2. The transportation department equipment fund is credited and the
monies are transferred to that fund.
D. Monies in the transportation department equipment fund
1. Purchase equipment and consumable materials.
2. Rent equipment.
3. Pay salaries, wages and employee related costs and benefits and
operating expenses for employees engaged in repairing, maintaining or
servicing equipment or the administration of these activities.
4. Pay salaries, wages, employee related costs and benefits and the
operating expenses of the department motor pool.
E. Monies in the transportation department equipment fund
F. In this section, unless the context otherwise requires:
1. "Consumable material" means motor vehicle fuel, lubricants, tires,
batteries, replacement or repair parts, automotive accessories and any other
necessary article of supply or material consumed in the operation,
improvement, repair or maintenance of equipment.
2. "Equipment" means any automobile, truck, tractor, trailer, motor
driven vehicle, aircraft or other piece of equipment used by the department
in the enforcement of the traffic laws and in the administration,
maintenance, construction or repair of the state transportation system and
any necessary shop tool or device used in the improvement, repair or
maintenance of this equipment.
3. "Equipment rental schedule" means the list of rental rates for each
piece of rental equipment owned or rented by the department and used as the
basis of reimbursing the transportation department equipment fund for use of
any equipment owned by the department.
4. "Other fee schedule" means the list of all costs and expenses that
is used as the basis of reimbursing the transportation department equipment
fund for an expenditure for labor or consumable material that is not reflected in the equipment rental schedule but which cost or expense is
nevertheless incurred by the department in the maintenance, service or repair
of equipment.
Sec. 6. Section 35-101, Arizona Revised Statutes, is amended to read:
In this chapter, unless the context otherwise requires:
1. "Allotment" means the allocation of an appropriation or other fund
source over a full fiscal year within a budget program or expenditure class.
2. "Budget estimates" means statements with accompanying explanations,
as provided by this chapter, in which a budget unit states its financial
requirements and requests appropriations.
3. "Budget program" means functions and activities of a budget unit
or within a budget unit that are preplanned to fulfill a distinct mission.
4. "Budget unit" means any department, commission, board, institution
or other agency of the state organization receiving, expending or disbursing
state funds or incurring obligations against the state.
5. "Claim" means a demand against the state for payment for either:
(a) Goods delivered or, in the case of highway construction, goods or
facilities to be delivered by the federal government.
(b) Services performed.
6. "Encumbrance" means an obligation in the form of any purchase
order, contract or other commitment which is chargeable to an appropriation
or any other authorized fund source and for which a part of
7. "Expenditure class" means one of the kinds of expenditure denoting
a class of services or commodities purchased or properties acquired as
specified in the classification of expenditures prescribed by the director
of the department of administration for use in expenditure accounting, in
making budget estimates and in the budget reports and budgets.
Sec. 7. Section 35-111, Arizona Revised Statutes, is amended to read:
Sec. 8. Section 35-112, Arizona Revised Statutes, is amended to read:
A. The governor shall prescribe the forms to be used by the budget
units in submitting their budget estimates and requests for appropriations
in accordance with the provisions of this chapter
B. On or before June 1
Sec. 9. Section 35-113, Arizona Revised Statutes, is amended to read:
The head of each
Sec. 10. Section 35-114, Arizona Revised Statutes, is amended to read:
A. The governor shall have in continuous process of preparation and
revision a tentative budget report for the next
B. The
1. February 15 of each
2. November 1 of each year to reflect the total amount appropriated
for the current and preceding fiscal years.
Sec. 11. Section 35-115, Arizona Revised Statutes, is amended to read:
Each
1. Summary statements of the financial condition of the state, to
include:
(a) A consolidated balance sheet showing all current assets and
liabilities of the state
(b) Summary statements of the actual income and expenditures of the
fiscal year last concluded.
(c) Similar summary statements of estimated fund balances for the
current fiscal year.
2. Schedules showing actual income from each source for the preceding
fiscal year and the estimated income of the current fiscal year and of the
3. Detailed comparative statements of expenditures and requests for
appropriations by funds, budget units, budget programs and budget classes,
showing the expenditures for the fiscal year last concluded, and the
estimated expenditures for the current year, and the request of each budget
unit and the governor's recommendations for appropriations for the
4. A summary statement for each fund of the cash resources estimated
to be available at the beginning of the next
5. For the 1999-2000 fiscal year and thereafter, delineation, by
budget unit, of requested expenditures for administrative costs, including
administrative personnel salaries and employee related expenses and direct,
indirect and shared costs for administrative office space, equipment,
supplies and overhead. For purposes of this paragraph, "administrative"
means any supportive activity relating to management, supervision, budget or
execution of the affairs of the budget unit as distinguished from activities
relating to its primary direct service functions. The process of delineation
and determination of what constitutes administrative costs for each budget
unit shall be developed by the governor's office of strategic planning and
budgeting in consultation with the director and staff of the joint
legislative budget committee.
6.
Sec. 12. Section 35-116, Arizona Revised Statutes, is amended to read:
A. Prior to submission of the budget report to the legislature, the
governor shall examine the statements and estimates and shall make or cause
to be made
B. The judiciary and the legislature shall not be subject to the
control of the governor in the preparation and submission of budgets, but
C. The appropriation requests of the Arizona board of regents and the
department of transportation for the ensuing fiscal year may be revised by
the governor
Sec. 13. Section 35-121, Arizona Revised Statutes, is amended to read:
The format of the appropriations for the support and maintenance of
state departments and institutions shall be
Sec. 14. Title 35, chapter 1, article 2, Arizona Revised Statutes, is
amended by adding section 35-122, to read:
1. DEVELOPING A STRATEGIC PLAN FOR THE ENTIRE BUDGET UNIT. AT A
MINIMUM, THE PLAN SHALL EXTEND FOR THE CURRENT FISCAL YEAR AND THE TWO
ENSUING FISCAL YEARS AND SHALL CONTAIN A MISSION STATEMENT, GOALS, OBJECTIVES
AND PERFORMANCE MEASURES FOR THE BUDGET UNIT AS A WHOLE. THE PERFORMANCE
MEASURES SHALL BE STATED IN TERMS THAT ARE CONSISTENT WITH A BUDGET UNIT'S
GOALS AND OBJECTIVES AND THAT EMPHASIZE RESULTS. THE STRATEGIC PLAN SHALL
BE SUBMITTED TO THE GOVERNOR'S OFFICE OF STRATEGIC PLANNING AND BUDGETING AND TO THE STAFF OF THE JOINT LEGISLATIVE BUDGET COMMITTEE BY APRIL 1 OF EACH
EVEN-NUMBERED YEAR.
2. DEVELOPING A STRATEGIC PLAN FOR EACH PROGRAM IDENTIFIED IN
SUBSECTION B OF THIS SECTION. THE PLAN SHALL USE THE SAME FORMAT AS THE PLAN
REQUIRED UNDER PARAGRAPH 1. THESE PLANS SHALL NOT BE SUBMITTED TO THE
GOVERNOR'S OFFICE OF STRATEGIC PLANNING AND BUDGETING AND THE STAFF OF THE
JOINT LEGISLATIVE BUDGET COMMITTEE UNLESS OTHERWISE REQUIRED FOR A PROGRAM
AUTHORIZATION REVIEW AUTHORIZED BY SECTION 41-1275.
B. CONSISTENT WITH INSTRUCTIONS ISSUED BY THE GOVERNOR, THE
ADMINISTRATIVE HEAD OF EACH BUDGET UNIT IS RESPONSIBLE FOR DEVELOPING A LIST
OF PROGRAMS FOR THE BUDGET UNIT. FOR EACH PROGRAM THE LIST SHALL INCLUDE A
DESCRIPTION, ITS MISSION STATEMENT, GOALS, PERFORMANCE MEASURES THAT
EMPHASIZE RESULTS AND BUDGETARY DATA FOR THE CURRENT AND PRIOR FISCAL YEAR.
THE BUDGETARY DATA SHALL INCLUDE FUNDING AMOUNTS, REGARDLESS OF SOURCE. THE
LIST OF PROGRAMS SHALL BE SUBMITTED TO THE GOVERNOR'S OFFICE OF STRATEGIC
PLANNING AND BUDGETING BY APRIL 1 OF EACH EVEN-NUMBERED YEAR. THE GOVERNOR'S
INSTRUCTIONS SHALL ALLOW BUDGET UNITS WITH A MINIMAL NUMBER OF PROGRAMS TO
CONSOLIDATE THEIR SUBMISSIONS FOR THE STRATEGIC PLAN REQUIRED UNDER
SUBSECTION A OF THIS SECTION WITH THE LIST OF PROGRAMS REQUIRED UNDER THIS
SUBSECTION.
C. THE GOVERNOR'S OFFICE OF STRATEGIC PLANNING AND BUDGETING SHALL
COMPILE THE SUBMISSIONS REQUIRED IN SUBSECTION B OF THIS SECTION AND SHALL
PUBLISH BY JULY 1 OF EACH EVEN-NUMBERED YEAR A MASTER LIST OF PROGRAMS THAT
ARE PERFORMED OR OVERSEEN BY STATE GOVERNMENT. IN CONSULTATION WITH THE
STAFF OF THE JOINT LEGISLATIVE BUDGET COMMITTEE, THE GOVERNOR'S OFFICE OF
STRATEGIC PLANNING AND BUDGETING MAY MODIFY THE LIST OF PROGRAMS SUBMITTED
BY EACH BUDGET UNIT. THE MASTER LIST SHALL INCLUDE THE PROGRAM DESCRIPTION,
MISSION STATEMENT, GOALS, PERFORMANCE MEASURES AND BUDGETARY DATA. THE LIST
SHALL INCLUDE ALL PROGRAMS THAT ARE ADMINISTERED JOINTLY BY TWO OR MORE
BUDGET UNITS.
D. FOR PURPOSES OF THIS SECTION, A PROGRAM MAY INCLUDE A SUBPROGRAM
AS DETERMINED BY THE GOVERNOR'S OFFICE OF STRATEGIC PLANNING AND BUDGETING
AND THE STAFF OF THE JOINT LEGISLATIVE BUDGET COMMITTEE.
Sec. 15. Section 35-193.02, Arizona Revised Statutes, is amended to
read:
A. There is established a permanent revolving fund to be known as the
department of administration special services revolving fund. The services
covered by this fund shall include office supplies, office services, printing
and other administrative or management services. Payments into the fund shall
be made by state agencies which have been appropriated monies for the purpose
of paying for services performed by the department of administration for
other state agencies or to be performed by the department and for such other purposes as may be designated by the legislature.
B. The monies shall be expended only on authorization of the director
of the department of administration.
C. The director shall adopt rules regarding the time and manner in
which payment shall be made into the fund by the state agencies to which
appropriations are made in accordance with subsection A.
D. Any amounts in excess of two hundred fifty thousand dollars in the
revolving fund at the close of the fiscal year shall revert to the state
general fund.
Sec. 16.
Section
Sec. 17. Section 36-431.01, Arizona Revised Statutes, as amended by
Laws 1996, chapter 102, section 31, is amended to read:
A. Any person who violates any provision of this chapter or any rule
adopted under authority of this chapter may be assessed a civil penalty by
the director in an amount of not to exceed three hundred dollars for each
violation. Each day that a violation continues shall constitute a separate
violation. The director may issue a notice of assessment that shall include
the proposed amount of the assessment. A person may appeal the assessment
by requesting, within fifteen days of receipt of the formal notice of
assessment, a hearing before the director. The hearing shall be conducted
pursuant to title 41, chapter 6. When an assessment is appealed, the
director shall take no further action to enforce and collect the assessment
until after the hearing.
B. Pursuant to interagency agreement specified in section 36-409, the
director may assess a civil penalty, including interest, in accordance with
42 United States Code, section 1396r. A person may appeal this assessment
by requesting a hearing before the director in accordance with subsection A
of this section. Civil penalty amounts may be established by rules adopted
by the director that conform to guidelines or regulations adopted by the
secretary of the United States department of health and human services
pursuant to 42 United States Code, section 1396r.
C. Actions to enforce the collection of penalties assessed pursuant
to subsections A and B of this section shall be brought by the attorney
general or the county attorney in the name of the state in the justice court
or the superior court in the county in which the violation occurred.
D. Penalties assessed under this section are in addition to and not
in limitation of other penalties imposed pursuant to this chapter. All civil
penalties and interest assessed pursuant to this section shall be
Sec. 18. Title 36, chapter 4, article 2, Arizona Revised Statutes, is
amended by adding section 36-431.02, to read:
B. THE DIRECTOR SHALL USE MONIES IN THE FUND FOR THE PURPOSES
PRESCRIBED IN SECTION 36-431.01, SUBSECTION D, SUBJECT TO LEGISLATIVE
APPROPRIATION.
C. MONIES IN THE FUND ARE EXEMPT FROM THE PROVISIONS OF SECTION
35-190, RELATING TO THE LAPSING OF APPROPRIATIONS.
Sec. 19. Section 36-694.01, Arizona Revised Statutes, is amended to
read:
A. The newborn screening program fund is established
B.
C. Monies in the fund are exempt from the provisions of section 35-190
relating to lapsing of appropriations.
Sec. 20. Section 36-2913, Arizona Revised Statutes, is amended to
read:
A.
B. Separate accounts, including but not limited to a reserve fund, may
be established within the funds. Different accounts within the funds shall
be established in order to separately account for expense and income activity
associated with the system established pursuant to this article and article
2 of this chapter.
C. The Arizona health care cost containment system and long-term care
system fund shall be comprised of:
1. Monies paid by each of the counties of this state of the amounts
determined or withheld by the state treasurer pursuant to section 11-292.
2. Monies received pursuant to section 36-2905.01, subsection F.
3. Monies paid by each county resolving to participate in the system
equal to the actual cost, as limited by the board of supervisors, together
with employee contributions of providing hospitalization and medical care
under the system to full-time officers and employees of the county and its
departments and agencies.
4. Monies paid by this state equal to the actual cost, as limited by
section 38-651, together with employee contributions of providing
hospitalization and medical care under the system to full-time officers and
employees of this state, of its departments and agencies and of cities, towns
and school districts of this state.
5. Monies drawn against appropriations made by this state for the
costs of operating the Arizona health care cost containment system or the
long-term care system. Monies shall be drawn against appropriations and
transferred from the fund from which they were appropriated on an as needed
basis only.
6. Gifts, donations and grants from any source.
7. Federal monies made available to this state for the operation of
the Arizona health care cost containment system or the long-term care system.
8. Interest paid on monies deposited in the fund.
9. Monies paid by the owners of eligible businesses in this state,
including employee contributions, for the actual cost of providing
hospitalization and medical care under the system to their full-time
employees together with interest paid on monies deposited in the fund.
D. The third party liability fund is comprised of monies paid by third
party payors and lien and estate recoveries.
E. All monies in the funds other than monies appropriated by the state
shall not lapse.
F. All monies drawn against appropriations made by this state
remaining in the funds at the end of the fiscal year shall revert to the fund from which they were appropriated and drawn
G. Notwithstanding sections 35-190 and 35-191, all approved claims for
system covered services presented after the close of the fiscal year in which
they were incurred shall be paid either in accordance with subsection F of
this section or in the current fiscal year with the monies available in the
funds
H. Claims for system covered services which are determined valid by
the director pursuant to section 36-2904, subsection H and the department's
grievance and appeal procedure shall be paid from the funds
I. For purposes of this section, system covered services exclude
administrative charges for operating expenses.
J. All payments for claims from the funds
K. Notwithstanding any other law, county owned or contracted providers
are subject to all claims processing and payment requirements or limitations
of this chapter which are applicable to non-county providers.
Sec. 21. Section 36-3002, Arizona Revised Statutes, is amended to
read:
A. There is established the domestic violence shelter fund consisting
of monies received pursuant to section 12-284, subsection C and section
25-311.01, subsection E. The program administrator shall administer the fund
for the purposes prescribed in this section.
B. The department of economic security, after full consultation with
a statewide coalition against domestic violence, shall establish program
priorities for the fund.
C. Monies in the fund do not revert to the state general fund.
Sec. 22. Section 38-654, Arizona Revised Statutes, is amended to read:
A. There is established a special employee health insurance trust fund
for the purpose of administering the state employee health insurance benefit plans. The fund shall consist of legislative appropriations, monies
collected from the employer and employees for the health insurance benefit
plans and investment earnings on monies collected from employees. The fund
shall be administered by the director of the department of administration.
B. Upon notice from the department of administration, the state
treasurer shall invest and divest monies in the fund as provided by section
35-313. Monies earned from such investment shall be deposited in and
credited to the special employee health insurance trust fund. There shall
be a separate accounting of monies contributed by the employer, monies
collected from state employees and investment earnings on monies collected
from employees. Monies collected from state employees for health insurance
benefit plans shall be expended prior to expenditure of monies contributed
by the employer.
C. The director of the department of administration may authorize the
employer health insurance contributions by fund to be payable in advance
whether the budget unit is funded in whole or in part by state monies. By
July 15 each year, the joint legislative budget committee staff shall
determine the amount appropriated for employer health insurance
contributions. The department of administration may transfer to the special
employee health insurance trust fund in whole or in part the amount
appropriated to budget units for employer health insurance contributions as
deemed necessary.
D. Monies in the fund shall be used by the department of
administration for the following purposes for the benefit of officers and
employees who participate in a health insurance benefit plan pursuant to this
article:
1. To administer a health insurance benefit program for state officers
and employees.
2. To pay health insurance premiums, claims costs and related
administrative expenses.
3. To apply against future premiums, claims costs and related
administrative expenses.
4. To apply the equivalent of not more than one dollar
E. The provisions of subsection D of this section shall not be
construed to require that all monies in the special employee health insurance
trust fund shall be used within any one or more fiscal years. Any person who is no longer a state employee or an employee who is no longer a participant
in a health insurance plan under contract with the department of
administration shall have no claim upon monies in the fund.
F. Monies deposited in or credited to the fund are exempt from the
provisions of section 35-190 relating to lapsing of appropriations.
G. Claims for services rendered prior to July 1, 1989 shall not be
paid from the special employee health insurance trust fund.
H. The department of administration shall prepare an annual report on
the financial activity of the special employee insurance trust fund.
Sec. 23. Section 38-737, Arizona Revised Statutes, is amended to read:
A. Employer contributions
B. All contributions made by the employer and allocated to the fund
established by section 38-712 are irrevocable and shall be used as benefits
under this article or to pay expenses of ASRS.
C. The required employer contributions shall be determined
D. For the fiscal years ending June 30, 1995 through
Fiscal year ending Funding period ends
June 30, 1995 June 30, 2005
June 30, 1996 June 30, 2007
June 30, 1997 June 30, 2009
JUNE 30, 2000 JULY 1, 2001 TO JUNE 30, 2003 JUNE 30, 2015
JUNE 30, 2002 JULY 1, 2003 TO JUNE 30, 2005 JUNE 30, 2019
JUNE 30, 2004 JULY 1, 2005 TO JUNE 30, 2007 JUNE 30, 2023
JUNE 30, 2006 JULY 1, 2007 TO JUNE 30, 2009 JUNE 30, 2027
JUNE 30, 2008 JULY 1, 2009 TO JUNE 30, 2011 JUNE 30, 2031
JUNE 30, 2010 JULY 1, 2011 TO JUNE 30, 2013 JUNE 30, 2035
JUNE 30, 2012 JULY 1, 2013 TO JUNE 30, 2015 JUNE 30, 2039
E. If at any time between June 30, 1995 and June 30, 2013 ASRS becomes
underfunded, the funding period immediately and permanently reverts to the
period provided in subsection A of this section.
Sec. 24. Section 38-803, Arizona Revised Statutes, is amended to read:
A. The fund manager, in the administration, management and operation
of the plan and fund, shall:
1. Account for the operation, administration and investment expenses
and allocate them against investment income.
2. Contract on a fee basis with an actuary to make an actuarial
valuation of the plan based on the valuation method and valuation assumptions
recommended by the actuary and approved by the fund manager. The actuary
shall be a member of the American academy of actuaries.
3. Contract on a fee basis with an independent auditing firm to make
an annual audit of the accounting records of the fund and file a copy of the
audit with the auditor general.
4. Invest the monies in the fund as provided in section 38-848.
5. Within a period of six months after the close of each fiscal year,
submit a detailed report of the operation and the investment performance of
the plan to the governor, the legislature and the members of the plan.
B. The fund manager, in the administration, management and operation
of the plan and fund, may:
1. Employ
2. Either keep invested monies separate or commingle invested monies
as it deems appropriate.
3. Delegate authority as it deems necessary and prudent to the
administrator employed pursuant to section 38-848, subsection
4. Do all acts, whether expressly authorized, which may be deemed
necessary or proper for the protection of the fund.
Sec. 25. Section 38-848, Arizona Revised Statutes, is amended to read:
A. The fund manager shall consist of five members and shall have
1. Three members appointed by the governor pursuant to section 38-211.
The governor shall appoint one elected member from a local board to represent
the employees, one member to represent the state as an employer of public
safety personnel and one member to represent the cities as employers of
public safety personnel.
2. An elected county or state official or a judge of the superior
court, court of appeals or supreme court alternately appointed by the
president of the senate and the speaker of the house of representatives.
3. One public member alternately appointed by the president of the
senate and the speaker of the house of representatives.
B. All monies in the fund shall be deposited and held in a public
safety personnel retirement system depository. Monies in the fund shall be
disbursed from the depository separate and apart from all monies or funds of
the state and the agencies, instrumentalities and subdivisions thereof.
C. All contributions under this system shall be forwarded to the fund
manager and shall be held, invested and reinvested by the fund manager. All
property and funds of the fund, including income from investments and from
all other sources, shall be retained for the exclusive benefit of members,
as provided in the system, and shall be used to pay benefits to members or
their beneficiaries or to pay expenses of operation and administration of the
system and fund.
D. The fund manager shall have the full power in its sole discretion
to invest and reinvest, alter and change the monies accumulated under the
system. The fund manager may delegate
1. That not more than sixty per cent of the pension fund shall be
invested at any given time in corporate stocks, based on cost value of such
stocks irrespective of capital appreciation.
2. That no more than five per cent of the pension fund shall be
invested in securities issued by any one institution, agency or corporation,
other than securities issued as direct obligations of and fully guaranteed
by the United States government.
3. That not more than five per cent of the voting stock of any one
corporation shall be owned.
4. That stocks eligible for purchase shall be restricted to stocks
E. Notwithstanding any other law, the fund manager shall not be
required to invest in any type of investment
F. Conference call meetings of the fund manager of the public safety
personnel retirement system which are held for investment purposes only are
not subject to the provisions of chapter 3, article 3.1 of this title, except
that the fund manager shall maintain minutes of these conference call
meetings and make them available for public inspection within twenty-four
hours after the meeting. The fund manager shall review the minutes of each
conference call meeting and shall ratify all legal actions taken during each
conference call meeting at the next scheduled meeting of the fund manager.
G. The fund manager shall not be held liable for the exercise of more
than ordinary care and prudence in the selection of investments and
performance of its duties under the system and shall not be limited to
so-called "legal investments for trustees", but all funds of the system shall
be invested subject to all of the conditions, limitations and restrictions
imposed by law.
H. Except as provided in subsection D of this section, the fund
manager may:
1. Invest and reinvest the principal and income of the pension fund
without distinction between principal and income.
2. Sell, exchange, convey, transfer or otherwise dispose of any
investments of the fund held in the name of the system by private contract
or at public auction.
3. Also:
(a) Vote upon any stocks, bonds or other securities.
(b) Give general or special proxies or powers of attorney with or
without power of substitution.
(c) Exercise any conversion privileges, subscription rights or other
options and make any payments incidental to the exercise of
(d) Consent to or otherwise participate in corporate reorganizations
or other changes affecting corporate securities, delegate discretionary
powers and pay any assessments or charges in connection therewith.
(e) Generally exercise any of the powers of an owner with respect to
stocks, bonds, securities or other investments held in the fund.
4. Make, execute, acknowledge and deliver any other instruments that
may be necessary or appropriate to carry out the powers granted in this
section.
5. Register any investment held in the fund in the name of the fund
or in the name of a nominee.
6. At the expense of the system, enter into an agreement with any bank
or banks for the safekeeping and handling of securities and other investments
coming into the possession of the fund manager. The agreement shall be entered into under
7. Appear before local boards and the courts of this state and
political subdivisions of this state through counsel or appointed
representative to protect the fund. The fund manager is not responsible for
the actions or omissions of the local boards under this system but may seek
review or rehearing of actions or omissions of local boards. The fund
manager does not have a duty to review actions of the local boards but may
do so in its discretion in order to protect the fund.
8. Empower the fund administrator to take actions on behalf of the
fund manager that are necessary for the protection and administration of the
fund in accordance with the guidelines of the fund manager.
9. Do all acts, whether or not expressly authorized,
I. Investment expenses and operation and administrative expenses of
the fund manager shall be accounted for separately and allocated against
investment income.
J. The fund manager, as soon as possible within a period of six months
following the close of any fiscal year, shall transmit to the governor and
the legislature an annual statement on the operation of the system
containing, among other things:
1. A balance sheet.
2. A statement of income and expenditures for the year.
3. A report on an actuarial valuation of its assets and liabilities.
4. A detailed statement of the investments acquired and disposed of
during the year.
5. A list of investments owned.
6. The total rate of return, yield on cost, and per cent of cost to
market value of the fund.
7. Any other statistical and financial data
K. The fund manager shall:
1. Maintain the accounts of the system and issue statements to each
employer annually and to each member who may request it.
2. Report the results of the actuarial valuations to the local boards
and employers.
3. Contract on a fee basis with an independent investment counsel to
advise the fund manager in the investment management of the fund and with an
independent auditing firm to audit the fund manager's accounting.
4. Permit the auditor general to make an annual audit and the results
shall be transmitted to the governor and the legislature.
5. Contract on a fee basis with an actuary who shall make actuarial
valuations of the system, be the technical adviser of the fund manager on
matters regarding the operation of the funds created by the provisions of the
system and perform
6. Employ, as administrator, a person, state department or other body
to serve at the pleasure of the fund manager.
7. Establish procedures and guidelines for contracts with actuaries,
auditors, investment counsel, legal counsel and for safeguarding of
securities.
L. The administrator, under the direction of the fund manager, shall:
1. Administer the provisions of this article.
2. Invest the funds of the system as the fund manager deems necessary
and prudent as provided in subsections D and H of this section and subject
to the investment guidelines, statement of investment policy and fund
objectives promulgated by the fund manager.
3. Establish and maintain an adequate system of accounts and records
for the system which shall be integrated with the accounts, records and
procedures of the employers so that the system operates most effectively and
at minimum expense and that duplication of records and accounts is avoided.
4. In accordance with personnel rules and procedures and the budget
adopted by the fund manager, hire such employees and services
5. Be responsible for income, the collection of the income and the
accuracy of all expenditures.
6. Recommend to the fund manager annual contracts for the system's
actuary, auditor, investment counsel, legal counsel and safeguarding of
securities.
7. Perform
M. The fund manager, the administrator and all persons employed by
them are not under the jurisdiction of the department of administration or
subject to section 38-611 or title 41, chapter 4, articles 5 and 6. The
salaries of the administrator and other employees of the fund manager are the
sole determination of the fund manager. Contracts for goods and services
approved by the fund manager are not subject to title 41, chapter 23.
N. The attorney general or an attorney approved by the attorney
general and paid by the fund shall be the attorney for the fund manager and
shall represent the fund manager in any legal proceeding.
O. At least once in each five-year period after the effective date,
the actuary shall make an actuarial investigation into the mortality, service
and compensation experience of the members and beneficiaries of the system
and shall make a special valuation of the assets and liabilities of the funds
of the system. Taking into account the results of
P. On the basis of
Q. Neither the fund manager nor any member or employee
Sec. 26. Section 38-883, Arizona Revised Statutes, is amended to read:
A. The fund manager shall:
1. Maintain records of the operation and administration of the plan
and fund.
2. Contract on a fee basis for an independent annual audit of the
accounting records of the plan and fund and file a copy of the audit report
with the auditor general.
3. Employ on a fee basis an independent firm of actuaries to perform
annual actuarial valuations for each participating employer of the plan and
fund based on an actuarial cost method and actuarial assumptions recommended
by the actuary and adopted by the fund manager. The actuarial valuations
shall be performed by or under the direct supervision of an actuary who is
a member of the American academy of actuaries.
4. Invest and reinvest the monies and assets of the fund in accordance
with the investment provisions of the public safety personnel retirement
system. The fund manager may commingle securities and monies of the fund
subject to the crediting of receipts and earnings and charging of payments
to the account of the appropriate employer.
5. Submit a detailed annual report of the operation and investment
performance of the plan and fund to the governor, the legislature and the
members of the plan. The fund manager shall submit the annual report no
later than six months after the end of the fiscal year to which it pertains.
B. The fund manager may:
1. Employ
2. Utilize separate or commingled investment vehicles.
3. Delegate authority to the administrator employed pursuant to
section 38-848, subsection
4. Appear before local boards and the courts and political
subdivisions of this state through counsel or appointed representatives to
protect the fund. The fund manager is not responsible for the actions or
omissions of the local boards under this plan but may seek review or a
rehearing of actions or omissions of local boards. The fund manager does not
have a duty to review actions of the local boards but may do so, in its
discretion, in order to protect the fund.
5. Perform all acts, whether or not expressly authorized, which it
deems necessary and proper for the protection of the plan and fund.
Sec. 27. Section 41-723, Arizona Revised Statutes, is amended to read:
A. The director shall designate a person to be in charge of
preparation of the executive budget as the federal-state fiscal research
officer.
B. The director or the federal-state fiscal research officer shall:
1. Confer with officials of federal agencies concerning grants-in-aid
generally, and particularly in regard to federal-aid programs in progress in
the state of Arizona.
2. Report to the legislature at each regular session
(a) The total amount of federal grants-in-aid received by Arizona
agencies during the preceding fiscal year.
(b) The total amount of federal grants-in-aid available to Arizona
agencies during the preceding fiscal year, giving reasons for any difference
between the amount of funds available to and the amount of funds accepted by
Arizona agencies in all federal grant-in-aid programs.
(c) The adequacy of grant-in-aid programs in progress in the state of
Arizona.
(d) Federal grant-in-aid programs in which the state does not
participate.
(e) Legislation necessary for activation of federal programs in which
the state does not participate.
(f) Legislation necessary for improved operation of federal
grant-in-aid programs in progress in the state of Arizona.
(g) Advisability of accepting new grant-in-aid programs or
discontinuing programs already in progress.
3. Have access to the books, accounts, reports
Sec. 28. Section 41-792.01, Arizona Revised Statutes, is amended to
read:
A. The capital outlay stabilization fund is established which shall
consist of monies paid into it in accordance with the provisions of
subsection D of this section and legislative appropriations to the account.
All monies in the fund are exempt from the provisions of section 35-190
relating to lapsing of appropriations.
B. The director shall make a recommendation for the allocation of a
varying sum to the capital outlay stabilization fund each year. No part of
the fund may be expended without specific appropriation from the legislature.
C. Each state department and each state agency when using space under
the jurisdiction of the department as prescribed in section 41-791 or when
using space in a building owned by or leased to the state shall pay a rental
as prescribed in subsection D or E of this section.
D. The rental rate authorized for agencies occupying state owned
buildings shall be determined by the joint committee on capital review after
recommendation by the director prior to the beginning of each fiscal year.
The rental is payable whether the department or agency is funded in whole or
in part by state monies. The department of administration shall transfer the
entire amount of the rental fee assessed on an agency from the agency account
into the capital outlay stabilization fund promptly at the start of each
fiscal year. During the remainder of the fiscal year, the department of
administration shall calculate pro rata adjustments to the rental fee on a
monthly basis to reflect any changes in the occupancy of state owned
buildings. The department shall transfer the amount of the rental fee
adjustment assessed on an agency from the agency account into the capital
outlay stabilization fund. The rental fee authorized for agencies occupying
state owned buildings is the greater of the amount included in each agency's
annual operating budget as reported by the staff of the joint legislative
budget committee or the pro rata adjusted amount based on actual occupancy.
The director of the department of administration, upon recommendation of the
joint committee on capital review, may authorize an exemption for one year
at a time for an agency from the full payment account transfer requirements
of this subsection if the agency can demonstrate a practice of making full
payment of rent on a different basis necessitated by its cash flow. If an
agency does not occupy or vacates state owned space after the beginning of
the fiscal year, the director of the department of administration, on
recommendation of the joint committee on capital review, may authorize a
whole or partial exemption from payment of the rental fee. The department
of administration shall report quarterly to the director of the joint
legislative budget committee on the status of rental fee collections and
adjustments.
E. The rental authorized for agencies occupying state leased buildings
shall be the greater of the amount included in each agency's annual operating
budget as reported by the staff of the joint legislative budget committee
or the pro rata adjusted amount based on actual occupancy. The rental amount
shall include the amount necessary to pay the lease or lease-purchase
obligation and may include the amount necessary to pay operating costs
associated with the lease-purchase buildings. The rental is payable whether
the department or agency is funded in whole or in part by state monies. At
the start of each fiscal year, the department of administration shall
transfer the entire amount of the rental fee assessed on an agency from the
agency account into the department of administration's
F. State universities, community colleges and the department of
transportation are exempt from the provisions of this section, except when
these agencies are using space under the jurisdiction of the department of
administration.
Sec. 29. Section 41-793, Arizona Revised Statutes, is amended to read:
B. The agency responsible for each building system established
pursuant to
1. A detailed list of all land acquisition and capital projects that
are recommended to be undertaken or continued for the building system during
the next
2. Forecasts as to the requirements for land acquisition and capital
projects for the building system during the
3. A report on the status of all ongoing or recently completed land
acquisitions and capital projects for the building system, with a summary of
monies expended for each acquisition or project.
4. A report on the condition, maintenance and utilization of all
buildings within the building system that were inspected during the prior
5. A report on the building renewal activities undertaken during the
past fiscal year, including the specific purposes for which monies were
expended, proposed activities for the current fiscal year and a prioritized
schedule of renewal projects proposed for the following
6. The amount of appropriation required in the following
C. On or before June 1 of each year or thirty days after the state
legislature adjourns, whichever is later, each state agency under the
department of administration building system and not later than August 1 of
each year each agency under the board of regents building system shall
provide to the agency responsible for its building system:
1. A detailed list of land acquisition and capital projects the agency
seeks to undertake or continue in the next
2. Forecasts as to the requirements for land acquisition or capital
projects of the agency for the
3. A report on all ongoing or recently completed land acquisitions and
capital projects of the agency, with a summary of monies expended for each
acquisition or project, and energy consumption and expenditure information.
4. Any other information requested by the agency responsible for the
building system.
D. Each state agency in complying with subsection C, paragraph 1 of
this section and the agency responsible for each building system in complying
with subsection B, paragraph 1 of this section should give priority to fire
and life safety projects.
E. The agency responsible for a building system shall inspect the
condition, maintenance and utilization of each building within the building
system not less than once every
F. The portion of the plan relating to the first
G. The governor shall prescribe standard forms in accordance with the
provisions of this section to be used by state agencies in preparing and
submitting capital improvement plans. The forms prescribed shall be so
constructed as to allow each building system to adequately provide
information pertinent to its manner of operation.
Sec. 30. Section 41-793.01, Arizona Revised Statutes, is amended to
read:
A. The joint committee on capital review shall develop and approve a
uniform formula for computing annual funding needs of building systems for
building renewal. In developing a formula, the committee shall take into
consideration at least the following factors:
1. The current replacement value of buildings, including structures
capitalized as part of the original cost of the buildings.
2. The original construction cost of buildings, including structures
capitalized as part of the original cost of the buildings.
3. The current age of buildings.
4. The expected useful life of buildings, including any extraordinary
use or functions of the building.
Sec. 31. Section 41-1273, Arizona Revised Statutes, is amended to
read:
A. The joint legislative budget committee shall appoint a budget
analyst and
B. The budget analyst shall serve full time as staff director and
receive compensation as determined pursuant to section 38-611. The budget
analyst, as a prerequisite for appointment, shall have demonstrated his
competency and ability in the field of finance either in private business or
public work.
C. The budget analyst may be removed from office prior to expiration
of
D. The budget analyst shall prepare for distribution an analysis of
the governor's budget as soon after the budget is presented to the
legislature as is possible. The analysis, among other things, shall include
recommendations of the budget analyst for revisions in expenditures.
E. In consultation with the governor's office of strategic planning
and budgeting, the budget analyst shall determine and report to the governor
and the legislature an estimate of appropriations subject to the limit
imposed by article IX, section 17, Constitution of Arizona. The report shall
be published by:
1. February 15 of each
2. November 1 of each year to reflect the total amount appropriated
for the preceding and current fiscal years.
F. By November 1 of each
1. A listing of funds that are recommended for elimination or
consolidation that represents a minimum of ten per cent of the total number
of funds in existence
2. A listing of funds for conversion from nonappropriated status to
appropriated status that represents at least five per cent by dollar amount
estimated
G. The legislature in making its appropriation for the operation of
the legislature shall allocate a portion thereof for the operation of the
joint legislative budget committee.
Sec. 32. Title 41, chapter 7, article 10, Arizona Revised Statutes,
is amended by adding section 41-1275, to read:
B. THE BUDGET UNIT RESPONSIBLE FOR A PROGRAM THAT IS SUBJECT TO
PROGRAM AUTHORIZATION REVIEW SHALL PREPARE A SELF-ASSESSMENT OF ITS PROGRAM
BY APRIL 1 OF THE ODD-NUMBERED YEAR FOLLOWING THE ENACTMENT OF LEGISLATION
DESCRIBED IN SUBSECTION A OF THIS SECTION. THE SELF-ASSESSMENT SHALL ADDRESS
THE EFFICIENCY AND EFFECTIVENESS OF EACH PROGRAM OPERATION AND WHETHER ITS
CURRENT OPERATION IS CONSISTENT WITH THE ORIGINAL LEGISLATIVE INTENT. THE
SELF-ASSESSMENT SHALL BE CONSISTENT WITH INSTRUCTIONS ISSUED BY THE
GOVERNOR'S OFFICE OF STRATEGIC PLANNING AND BUDGETING AND JOINT LEGISLATIVE
BUDGET COMMITTEE STAFF AND SHALL BE SUBMITTED TO THE TWO OFFICES. BUDGET
UNITS MAY BE REQUIRED TO DEVELOP JOINT SELF-ASSESSMENTS IF THEIR PROGRAMS ARE
OF A SIMILAR NATURE.
C. THE STAFF OF THE JOINT LEGISLATIVE BUDGET COMMITTEE AND THE
GOVERNOR'S OFFICE OF STRATEGIC PLANNING AND BUDGETING SHALL REVIEW THE
PROGRAM AUTHORIZATION SELF-ASSESSMENT SUBMITTED BY EACH BUDGET UNIT. THE TWO
OFFICES SHALL EVALUATE THE PROGRAM ACCORDING TO AGREED UPON FACTORS AND SHALL
JOINTLY PRODUCE A REPORT OF THEIR FINDINGS NO LATER THAN OCTOBER 15 OF EACH
ODD-NUMBERED YEAR. THE FINDINGS SHALL ADDRESS THE VIEWS OF THE TWO OFFICES
ON THE PROGRAM'S EFFICIENCY AND EFFECTIVENESS. BEFORE THE PUBLIC HEARING
REQUIRED IN SUBSECTION D OF THIS SECTION IS HELD, EACH OFFICE MAY
INDEPENDENTLY RECOMMEND WHETHER TO RETAIN, ELIMINATE OR MODIFY FUNDING AND RELATED STATUTORY REFERENCES FOR THE PROGRAMS THAT ARE SUBJECT TO PROGRAM
AUTHORIZATION REVIEW.
D. THE SPEAKER OF THE HOUSE OF REPRESENTATIVES AND THE PRESIDENT OF
THE SENATE SHALL APPOINT SUFFICIENT JOINT PROGRAM AUTHORIZATION REVIEW
COMMITTEES TO EVALUATE THE PROGRAM AUTHORIZATION REVIEW FINDINGS AND ANY
RECOMMENDATIONS MADE PURSUANT TO SUBSECTION C OF THIS SECTION. EACH JOINT
PROGRAM AUTHORIZATION REVIEW COMMITTEE SHALL HAVE REPRESENTATION FROM MEMBERS
OF BOTH PARTIES IN A PROPORTION EQUAL TO THAT OF THE POLITICAL MAKE-UP OF
EACH HOUSE. IN ADDITION TO THE LEGISLATIVE MEMBERS, FOR EACH COMMITTEE, THE
GOVERNOR SHALL APPOINT A PRIVATE CITIZEN WITH EXPERIENCE IN COST BENEFIT
ANALYSIS, THE PRESIDENT OF THE SENATE SHALL APPOINT A PRIVATE CITIZEN WITH
A GENERAL BUSINESS BACKGROUND AND THE SPEAKER OF THE HOUSE OF REPRESENTATIVES
SHALL APPOINT A PRIVATE CITIZEN. EACH JOINT PROGRAM AUTHORIZATION REVIEW
COMMITTEE MAY BE RESPONSIBLE FOR MORE THAN ONE PROGRAM AUTHORIZATION REVIEW.
AFTER RECEIPT OF THE PROGRAM AUTHORIZATION REVIEW FINDINGS, THE JOINT PROGRAM
AUTHORIZATION REVIEW COMMITTEE SHALL HOLD AT LEAST ONE PUBLIC HEARING FOR THE
PURPOSE OF RECOMMENDING WHETHER TO RETAIN, ELIMINATE OR MODIFY FUNDING AND
RELATED STATUTORY REFERENCES FOR THE PROGRAMS SUBJECT TO REVIEW. THE JOINT
PROGRAM AUTHORIZATION REVIEW COMMITTEE SHALL MAKE ITS RECOMMENDATIONS TO THE
GOVERNOR, THE PRESIDENT OF THE SENATE AND THE SPEAKER OF THE HOUSE OF
REPRESENTATIVES BY DECEMBER 15 OF EACH ODD-NUMBERED YEAR. THE PROGRAM
AUTHORIZATION REVIEW COMMITTEE SHALL OVERSEE THE PREPARATION OF ANY PROPOSED
LEGISLATION TO IMPLEMENT ITS RECOMMENDATIONS AND IS RESPONSIBLE FOR THE
INTRODUCTION OF THIS LEGISLATION. EACH JOINT PROGRAM AUTHORIZATION REVIEW
COMMITTEE HAS THE POWER OF LEGISLATIVE SUBPOENA PURSUANT TO ARTICLE 4 OF THIS
CHAPTER.
E. FOR PURPOSES OF THIS SECTION, A PROGRAM MAY INCLUDE A SUBPROGRAM
AS DETERMINED BY THE GOVERNOR'S OFFICE OF STRATEGIC PLANNING AND BUDGETING
OR THE JOINT LEGISLATIVE BUDGET COMMITTEE STAFF.
Sec. 33. Section 41-2401, Arizona Revised Statutes, as amended by Laws
1996, chapter 87, section 3 and chapter 172, section 4, is amended to read:
A. A criminal justice enhancement fund is established in the state
treasury consisting of monies collected pursuant to section 12-116.01 and
monies available from any other source. The state treasurer shall administer
the fund.
B. On or before November 1 of each year, each department, agency or
office that receives monies pursuant to this section shall provide to the
Arizona criminal justice commission a report for the preceding fiscal year.
The report shall be in a form prescribed by the Arizona criminal justice
commission and
C. On or before December 1 of each year, the Arizona criminal justice
commission shall compile all reports into a single comprehensive report and
D. On the first day of each month, the state treasurer shall
distribute or deposit:
1.
2.
3.
4.
5.
6.
(a) To enhance projects that are designed to prevent residential and
commercial burglaries, to control street crime, including the activities of
criminal street gangs, and to locate missing children.
(b) To provide support to the Arizona automated fingerprint
identification system.
(c) Operational costs of the criminal justice information system.
7.
8.
9.
10.
11.
12.
13.
14.
15.
E. Monies distributed pursuant to subsection D, paragraphs 3
Sec. 34. Section 41-2402, Arizona Revised Statutes, is amended to
read:
A. A drug and gang enforcement account is established within the
criminal justice enhancement fund consisting of monies appropriated to the
account by the legislature and any other monies available from other sources,
public or private, to be used for the purpose of enhancing efforts to deter,
investigate, prosecute, adjudicate and punish drug offenders and members of
criminal street gangs as defined in section 13-2301.
B. The criminal justice commission shall distribute monies from the
drug and gang enforcement account in the following manner:
1. Up to thirty per cent to fund programs and agencies approved by the
commission to enhance the investigation of drug and gang offenses and related
criminal activity.
2. Up to thirty per cent to fund programs and agencies approved by the
commission to enhance the state and county prosecution of drug and gang
offenses and related criminal activity.
3. Up to ten per cent to fund programs and agencies approved by the
commission to enhance the city or town prosecution of drug and gang offenses
and related criminal activity.
4. Up to thirty per cent to fund programs and agencies approved by the
commission for the purpose of enhancing the ability of the courts to process
drug and gang offenses and related criminal cases, either through the
appointment of judges pro tempore or the establishment of additional
divisions of the courts only for the purposes of this section, enhancing
defense and probation services, including treatment, and funding the drug
testing program.
5. Up to thirty per cent to fund programs by county sheriffs, as
approved by the commission, to enhance the jail operations and facilities
available to detain and incarcerate drug offenders and members of criminal
street gangs as defined in section 13-2301.
C. Before any monies are expended from the account, the criminal
justice commission shall submit to the joint legislative budget committee a
plan of proposed expenditures from the account and the anticipated fiscal and
operational impact of those expenditures on all state and local agencies.
D. Any state agency which receives monies allocated from this account
shall not include such monies as part of its continuation budget base for the
purpose of requesting appropriations for the following fiscal year.
E. All the monies allocated from this account shall be dedicated
solely to the purpose of enhancing efforts to deter, investigate, prosecute,
adjudicate and punish drug and gang and related criminal offenders, except
those monies allocated pursuant to subsection H of this section.
F. Notwithstanding the limitations prescribed in subsection B of this
section, any federal monies or matching state monies in the drug and gang
enforcement account may only be allocated by the commission pursuant to a
plan approved by the federal government.
G. The auditor general shall annually perform a full and complete
audit of the fund or the commission shall annually contract with an
accounting firm to perform the audit and deliver a report to the governor and
the legislature. The audit shall be charged to the drug and gang enforcement
account.
H. A resource center fund
Sec. 35. Section 42-133, Arizona Revised Statutes, is amended to read:
A. The department shall establish a liability setoff program by which
refunds under sections 42-129, 43-1072 and 43-1073 may be used to satisfy
debts which the taxpayer owes this state or a court. The program shall
comply with the standards and requirements prescribed by this section.
B. If a taxpayer owes an agency or court a debt, the agency
C. The department shall match the information submitted by the agency
or court with taxpayers who qualify for refunds under section 42-129 and:
1. Notify the agency or court of a potential match, the taxpayer's
home address and any additional taxpayer identification numbers used by the
taxpayer. Even if the taxpayer is not entitled to a refund, the department
shall provide to the department of economic security, for child support
purposes only, the home address of a taxpayer whose debt for overdue support
is referred for setoff and any additional taxpayer identification numbers
used by the taxpayer.
2. Request final agency or court confirmation within ten days of the
match and of the continuation of the debt.
D. If an agency or court informs the department of a significant
reduction in or total payment of the debt referred for setoff before the
department finds a match, the department shall ensure that the taxpayer's
refund is not withheld to the extent that the debt has been paid.
E. On confirmation pursuant to subsection C, paragraph 2 of this
section, the agency shall notify the taxpayer, by mail to the most recent
address provided by the taxpayer to the department, of the intention to set
off the debt against the refund due and of the taxpayer's right to appeal to
the appropriate court, or to request a review by the agency pursuant to
agency rule, within thirty days of the mailing of the notice. The basis for
a request for review shall not include the validity of the claim if its
validity has been established at an agency hearing, by judicial review in a court of competent jurisdiction in this or any other state or by final
administrative decision and shall state with specificity why the taxpayer
claims the obligation does not exist or why the amount of the obligation is
incorrect. If the setoff accounts for only a portion of the refund due, the
remainder of the refund shall be sent to the taxpayer.
F. If, within thirty days of the mailing of the notice, the taxpayer
requests a review by the agency or provides the agency with proof that an
appeal has been taken to the appropriate court, the agency shall immediately
notify the department and the setoff procedure shall be stayed pending
resolution of the review or appeal.
G. If the department does not receive notice of a timely appeal, it
shall draw and deliver a warrant in the amount of the available refund up to
the amount of the debt in favor of the agency, identifying the debt so
satisfied, and notify the taxpayer of the action by certified mail.
H. The provisions of subsections E, F and G of this section do not
apply to a debt imposed by a court. A court shall not use this section to
satisfy a judgment or payment of a fine or civil sanction until the judgment
has become final or until the time to appeal the imposition of a fine or
civil sanction has expired.
I. A revolving fund is established to recover and pay the cost of
operating the setoff program under this section. The department may
prescribe a fee to be collected from each agency or court utilizing the
setoff procedure or from the taxpayer, and the amount shall be deposited in
the fund. The amount of the fee shall reasonably reflect the actual cost of
the service provided.
J. If agencies or courts have two or more delinquent accounts for the
same taxpayer, the refund may be apportioned among them pursuant to rules
prescribed by the department, except that a setoff to the department of
economic security for overdue support has priority over all other setoffs.
K. If the refund is insufficient to satisfy the entire debt, the
remainder of the debt may be collected by the agency or court as provided by
law or resubmitted for setoff against subsequent refunds.
L. In the case of a refund that is intercepted in error under this
section, the taxpayer shall be reimbursed by the agency or court with
interest pursuant to section 42-134.
M. Except as is reasonably necessary to accomplish the purposes of
this section, the department shall not disclose under this section any
information in violation of section 42-108.
N. An agency or court shall not enter an agreement with a debtor for:
1. The assignment of any prospective refund to the agency or court in
satisfaction of the debt.
2. Payment of the debt if the debt has been confirmed to the
department for setoff under subsection C, paragraph 2 of this section.
O. In this section:
1. "Agency" means a department, agency, board, commission or
institution of this state. Agency also means a corporation that is under
contract with this state and that provides a service that would otherwise be
provided by a department, agency, board, commission or institution of this
state, if the contract specifically authorizes participation in the liability
setoff program and the attorney general's office has reviewed the contract
and approves such authorization. The participation in the liability setoff
program shall be limited to debt related to the services the corporation
provides for or on behalf of this state.
2. "Court" means all courts of record, justice courts, municipal
courts and police courts.
3. "Debt" means an amount over fifty dollars owed to an agency or
court by a taxpayer and may include a judgment in favor of this state or a
political subdivision of this state, interest, penalties, charges, costs,
fees, fines, civil sanctions, surcharges, assessments, administrative charges
or any other amount. Debt also includes monies owed by a taxpayer for
overdue support and referred to the department of economic security for
collection.
4. "Overdue support" means a delinquency in court ordered payments for
support of a child or for spousal maintenance to the parent with whom the
child is living if child support is also being enforced pursuant to an
assignment or application filed under 42 United States Code section 654 (6).
Sec. 36. Section 49-551, Arizona Revised Statutes, is amended to read:
A. Every person who is required to register a motor vehicle in this
state pursuant to section 28-302 shall pay, in addition to the registration
fee, an annual air quality fee at the time of vehicle registration of one
dollar fifty cents.
B. The registering officer shall collect the fees and immediately
transmit the air quality fees to the state treasurer. The state treasurer
shall deposit the fees in the air quality fund established pursuant to
subsection C of this section.
C. An air quality fund is established in the state treasury consisting
of monies received pursuant to this section and section 15-214, gifts, grants
and donations, and monies appropriated by the legislature. The department
of environmental quality shall administer the fund. Monies collected
pursuant to section 15-214, monies appropriated for purposes prescribed by
paragraph 6 of this subsection and gifts, grants and donations designated for
purposes prescribed by paragraph 6 of this subsection shall be accounted for
in one separate account within the fund.
1. Air quality research, experiments and programs conducted by or for
the department for the purpose of bringing vehicle emissions control areas
into attainment status, improving air quality in areas of this state outside
of the vehicle emissions control areas and reducing levels of particulate and
ozone pollution both inside and outside of vehicle emissions control areas
of this state.
2. Funding the Arizona clean air fund established by section 41-1516.
The sum of two hundred fifty thousand dollars shall annually be transferred
to the fund.
3. Determining the cause of visual air pollution in counties with a
population of four hundred thousand persons or more according to the most
recent United States decennial census.
4. Conducting the hazardous air pollutants research program and
preparing the report as prescribed by section 49-426.08.
5. Developing and adopting rules in compliance with sections
49-426.03, 49-426.04, 49-426.05 and 49-426.06.
6. Conducting a public education program to reduce emissions of ozone
forming substances in cooperation with Maricopa county and other affected
parties, including private industries. To the extent possible, this program
shall be coordinated with other public and private efforts to increase public
awareness of air quality issues. This program shall be implemented on or
before May 1, 1995 and shall conclude no earlier than September 30, 1996.
In addition, the department shall accelerate pollution prevention technical
assistance efforts pursuant to section 49-965, subsection A, paragraph 6 in
order to avoid ozone violations in calendar years 1995 and 1996. The
department shall identify sources that emit ozone forming substances and
shall establish a clearinghouse for information on the supply of products
that may be used to substitute for substances that contribute to ozone
formation.
D. No disbursement or expenditure of monies in the air quality fund
may be made for any purposes other than those set forth in subsections C, E
and G of this section.
E. The department of environmental quality shall allocate and the
state treasurer shall distribute four hundred thousand dollars from the air
quality fund to the department of administration for the purposes prescribed
by section 49-588 in eight installments in each of the first eight months
of a fiscal year.
F. This section does not apply to an electrically powered golf cart
or an electrically powered vehicle.
G. Monies in the fund do not revert to the general fund. The
department may make grants to a regional planning agency, county, city or town located within a vehicle emissions control area or areas which have
achieved maintenance status for the purpose of air quality research or
implementation of programs designed to accomplish the purposes of this
section.
Sec. 37. Section 49-818, Arizona Revised Statutes, is amended to read:
A. A used oil fund is established. The director shall administer the
fund. The fund consists of monies appropriated by the legislature and used
oil penalties collected pursuant to section 49-814. On notice from the
director, the state treasurer shall invest and divest monies in the fund as
provided by section 35-313, and monies earned from investment shall be
credited to the fund. Monies deposited in the fund are exempt from the
provisions of section 35-190 relating to lapsing of appropriations.
B.
1. Sample collection and analysis of used oil fuel to assure the fuel
meets on-specification criteria pursuant to section 49-801, subsection A,
paragraph 6.
2. Program oversight including sample collection, analysis review,
data entry, contractor coordination, inspections, equipment, enforcement and
rule development for the used oil program.
Sec. 38.
A. Laws 1993, chapter 252, section 11, as amended by Laws 1995,
chapter 283, section 3 is repealed.
B. Laws 1993, chapter 252, section 13, as amended by Laws 1995,
chapter 283, section 4 is repealed.
Sec. 39. Laws 1995, chapter 283, section 5, as amended by Laws 1996,
chapter 339, section 3, is amended to read:
Sec. 5.
A. To implement the initial program authorization review process
established by Laws 1993, chapter 252, section 11, the appropriate
legislative committees shall consider at least a total of
1. The following
(a) Underground storage tank, department of environmental quality.
(b) State agricultural laboratory
(c) Enterprise network services
(d) Drop-out prevention, department of education.
(e) Complex administration, state department of corrections.
(f) Diagnostic services, department of juvenile corrections.
(g) Judicial collection enhancement, judicial system.
(h) Medical malpractice, primary health care and loan repayment,
department of health services.
(i) Pass-through program - Arizona health education centers, Arizona
board of regents.
(j) Medical student loan board.
The programs specified in subdivisions (h), (i) and (j) of this paragraph
shall be considered together in the state's role in rural health.
2. The following
(a) Sportsfish management, game and fish department.
(b) Cooperative programs, Arizona state schools for the deaf and the
blind.
(c) Facilities management
(d) Law, university of Arizona.
(e) College of law, Arizona state university.
(f) Corporations, corporation commission.
(g) Juvenile community corrections
(h) International trade and investment, department of commerce.
(i) Anti-gang enforcement, department of public safety.
(j) Inmate programs, state department of corrections.
(k) Comprehensive medical and dental program, department of economic
security.
(l) Highway maintenance, department of transportation.
(m) Arizona state hospital
(n) Compliance
The program specified in subdivision (n)
3. The following
(a) Fleet management, department of administration.
(b) Surplus property management, department of administration.
(c)
(d) Financial services, department of commerce.
(e) Arizona business assistance center, department of commerce.
(f) Sports development, department of commerce.
(g)
(h) Statewide planning, department of water resources.
(i) Adoption services, department of economic security.
(j) Vocational rehabilitation services, department of economic
security.
(k) Domestic violence, department of economic security.
(l) Domestic violence, judicial system.
(m) Substance abuse services
(n) Chemical abuse prevention, department of education.
(o) Oral health, department of health services.
(p) Justice of the peace salaries, state treasurer.
(q) Special services, department of public safety.
(r) Business administration and welcome center operations
(s) Medical services, state department of corrections.
(t) Dental services, state department of corrections.
(u) Health services, department of juvenile corrections.
(v) Adult intensive probation services, judicial system.
(w) Victim rights and witness assistance, attorney general -
department of law.
(x)
(y) Extended university, University of Arizona.
(z) College of extended education, Arizona State University.
(aa) Statewide academic programs, northern Arizona university. The
program specified in this subdivision shall focus on extended education
offerings.
B. The procedure for program authorization review shall be conducted
in the following three phases:
1. The budget unit responsible for a program or subprogram that is
subject to authorization review shall submit to the director of the joint
legislative budget committee and the director of the
2. The director of the joint legislative budget committee and the
director of the office of strategic planning and budgeting shall evaluate the
program or subprogram according to agreed upon factors and shall first
jointly review the program authorization evaluation submitted by the
department or departments responsible for the program or subprogram. After
the joint review, the two staffs shall jointly produce by the previous
October 1 for the 1997
3. As part of their ensuing respective budget recommendations, the
joint legislative budget committee and the office of strategic planning and
budgeting may independently determine whether to retain, eliminate or modify
funding and related statutory references for the programs or subprograms that
are subject to the program authorization review. It is the intent of the
legislature not to conduct a program authorization review on a program for
which funding is already eliminated.
4. For any program that is undergoing program authorization review,
that is being audited by the auditor general or reviewed by the office of
excellence in government, the auditor general and the office of excellence
in government shall share
Sec. 40.
A. Sections 3, 6 through 12, 14, 23 through 27, 29 through 31 of this
act are effective from and after February 28, 1998.
B. Sections 4, 5, 19 through 22, 28 and 33 of this act are effective
from and after June 30, 1998.
C. Sections 1, 2, 13, 15 and 34 through 37 of this act are effective
from and after June 30, 1999.
Sec. 41.
Section 39 of this act is repealed from and after June 30, 1998.
APPROVED BY THE GOVERNOR APRIL 28, 1997.
FILED IN THE OFFICE OF THE SECRETARY OF STATE APRIL 28, 1997.
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