ARIZONA
HOUSE OF REPRESENTATIVES
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SB 1274: public monies; recovery; illegal payments |
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PRIME SPONSOR: Senator Petersen, LD 12 BILL STATUS: Caucus & COW |
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Relating to the recovery of illegally paid public
monies.
Provisions
County Attorney
1. Permits the County Attorney to bring an action against a county or school district officer, employee or agent to enjoin the illegal payment of public monies or to recover illegally paid public monies. (Sec. 1)
o Currently, the County Attorney may only bring an action against the BOS (A.R.S. § 11-641).
2. Prohibits a county or school district officer, employee or agent, who disburses public monies pursuant to a warrant or claim, from being held liable for an illegal payment unless that individual knew or should have known that the warrant or claim would result in an illegal payment. (Sec. 1)
a. Applies this prohibition to a public official, employee, budget unit or agent of the state or any of its political subdivisions. (Sec. 3)
Attorney General
3. Permits the AG to bring an action to recover illegally paid public monies against:
a. Any person who received the illegal payment;
b. The public body, officer or supervisor of the person who ordered or caused the illegal payment; or
c. The public official, employee or agent who ordered or caused the illegal payment. (Sec. 3)
4. SPECIFIES THAT RECOVERED PUBLIC MONIES OF A POLITICAL SUBDIVISION MUST BE PAID BACK TO THE POLITICAL SUBDIVISION. (GOV)
5. REQUIRES AN ACTION BY THE AG TO BE BROUGHT WITHIN FIVE YEARS AFTER THE ILLEGAL PAYMENT WAS ORDERED. (GOV)
6. SPECIFIES THAT AN ACTION TO RECOVER ILLEGALLY PAID PUBLIC MONIES IS SUBJECT TO THE STATUTORY REQUIREMENTS REGARDING ACTIONS AGAINST PUBLIC ENTITIES OR EMPLOYEES. (GOV)
o Title 12, Chapter 7, Article 2 outlines requirements for actions against public entities or employees.
7. Specifies that an action to recover illegally paid monies against any person who received the illegal payment or the public official, employee or agent who ordered or caused the illegal payment may only be brought by the AG. (Sec. 6)
8. Allows a taxpayer to bring an action against a public body, officer or supervisor of the person who ordered or caused an illegal payment if the AG fails to bring an action within 60 days of a written request.
a. Specifies that a request regarding a political subdivision may only be made by a taxpayer of that political subdivision.
b. Specifies that a request regarding a county may only be submitted 21 days after a request is made to the County Attorney. (Sec. 6)
9. SPECIFIES THAT THE PERSON BRINGING AN ACTION MUST PROSECUTE THE ACTION WITH DILIGENCE AND FINALITY AND PAY ALL DAMAGES SUSTAINED AND COSTS INCURRED, INCLUDING ATTORNEY FEES AWARDED TO THE DEFENDANT. (GOV)
o Currently, statute specifies the person must prosecute the action with diligence and finality or pay damages sustained and costs incurred (A.R.S. § 35-213).
10. PERMITS THE COURT TO AWARD THE PREVAILING PARTY COSTS AND REASONABLE ATTORNEY FEES. (GOV)
o Currently, statute specifies that if the taxpayer prevails, the court is required to award the taxpayer costs and attorney fees (A.R.S. § 35-213).
11. Allows a public official, employee or agent charged with collecting, receiving, safekeeping, transferring or disbursing of public monies to be held personally liable for an illegal payment of public monies. (Sec. 3)
Miscellaneous
12. Expands the definition of public monies to include all monies coming into the lawful possession, custody or control of a TAX-SUPPORTED political subdivision or any of its officers, employees or agents. (Sec. 3) (GOV)
13. MAKES CLARIFYING CHANGES. (GOV)
14. Makes technical and conforming changes. (Sec. 1-4)
Current Law
If a BOS orders any monies to be paid from the county treasury without the authority of law, the BOS and party in whose favor the order is made are jointly and severally liable for the monies with interest at the legal rate, and 20% additional on the principal amount. The County Attorney may bring an action against the BOS to enjoin the payment of the monies or to recover the monies (A.R.S. § 11-641). If the County Attorney fails to bring an action within 20 days after written request, any taxpayer of the county is permitted to bring an action in their own name and own expense (A.R.S. § 11-642).
Additionally, the AG may bring an action to enjoin the illegal payment of public monies or, if the monies have been paid, to recover the monies plus 20% of that amount together with interest and costs, including attorney fees (A.R.S. § 35-212). If the AG fails to bring an action within 60 after written request, a taxpayer is permitted to bring an action in their own name and at their own expense (A.R.S. § 35-213).
Public monies include all monies coming into the lawful possession, custody or control of state agencies, boards, commissions, departments or a state officer, employee or agent, irrespective of the source or manner in which the monies are received (A.R.S. § 35-212).
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Fifty-third Legislature SB 1274
Second Regular Session Version 2: Caucus & COW
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