AMENDING SECTIONS 3-1005, 23-981, 28-3398, 28-7006, 35-101, 35-111, 35-112,
35-113, 35-114, 35-115, 35-116, 35-121, 35-193.02, 36-694.01, 36-2913,
36-3002, 38-654, 38-737, 38-803, 38-848, 38-883, 41-723, 41-792.01, 41-793,
41-793.01, 41-1273, 41-2402, 42-133, 49-551 AND 49-818, ARIZONA REVISED STATUTES; AMENDING SECTION 5-113, ARIZONA REVISED STATUTES, AS AMENDED BY
LAWS 1996, CHAPTER 353, SECTION 2; AMENDING TITLE 35, CHAPTER 1, ARTICLE 2,
ARIZONA REVISED STATUTES, BY ADDING SECTION 35-122; REPEALING SECTION
36-431.01, ARIZONA REVISED STATUTES, AS AMENDED BY LAWS 1996, CHAPTER 220,
SECTION 48; AMENDING SECTION 36-431.01, ARIZONA REVISED STATUTES, AS AMENDED
BY LAWS 1996, CHAPTER 102, SECTION 31; AMENDING TITLE 36, CHAPTER 4, ARTICLE
2, ARIZONA REVISED STATUTES, BY ADDING SECTION 36-431.02; AMENDING TITLE 41,
CHAPTER 7, ARTICLE 10, ARIZONA REVISED STATUTES, BY ADDING SECTION 41-1275;
AMENDING SECTION 41-2401, ARIZONA REVISED STATUTES, AS AMENDED BY LAWS 1996,
CHAPTER 87, SECTION 3 AND CHAPTER 172, SECTION 4; REPEALING LAWS 1993,
CHAPTER 252, SECTION 11, AS AMENDED BY LAWS 1995, CHAPTER 283, SECTION 3 AND
LAWS 1993, CHAPTER 252, SECTION 13, AS AMENDED BY LAWS 1995, CHAPTER 283,
SECTION 4; AMENDING LAWS 1995, CHAPTER 283, SECTION 5, AS AMENDED BY LAWS
1996, CHAPTER 339, SECTION 3; PROVIDING FOR DELAYED REPEAL; BLENDING MULTIPLE
ENACTMENTS; RELATING TO PUBLIC FINANCES.
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 3-1005, Arizona Revised Statutes, is amended to
read:
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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