ARIZONA STATE SENATE

RESEARCH STAFF

MOLLY GRAVER

LEGISLATIVE RESEARCH INTERN

 

GRANT HANNA

LEGISLATIVE RESEARCH ANALYST

COMMERCE & PUBLIC SAFETY COMMITTEE

Telephone: (602) 926 -3171

 

 

TO:                  MEMBERS OF THE SENATE

                        COMMERCE & PUBLIC SAFETY COMMITTEE

                                     

DATE:            March 15, 2018

 

SUBJECT:      Strike everything amendment to H.B. 2120, relating to state law; local government violations

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Purpose

 

Increases the period for a local government to resolve a violation of state law or the Arizona Constitution (Constitution) and allows local governments to appeal to the Arizona Supreme Court (Supreme Court).

 

Background

 

The AG serves as the chief legal officer of the state and is the legal advisor for state departments. The AG is responsible for representing political subdivisions, school districts and municipalities in suits to enforce state or federal statute (A.R.S. § 41-192).

 

            Members may request an AG investigation if the Member suspects that a local ordinance or regulation violates state law or the Constitution. Within 30 days after receipt of the request, the AG is required to write a report of findings and conclusions of the investigation. If the governing body is found to have violated state law or the Constitution, the AG is required to notify the local government of the violation and to provide 30 days for the local government to resolve the violation. If the AG determines that the local government has failed to resolve the violation within 30 days, the AG must notify the State Treasurer to withhold and redistribute state shared monies from the local government (A.R.S. § 41-194.01).

 

If the AG finds that the governing body may have violated state law or the Constitution the AG files a special action in the Supreme Court to resolve the issue. No further action is pursued if the AG finds no violation (A.R.S. § 41-194.01).

 

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

 

Provisions

 

1.      Requires the AG to notify the local government alleged to violate state law or the Constitution of the investigation request.

 

2.      Grants local governments at least 30 days to respond to allegations before an AG determination.

 

3.      Modifies the timeframe for the AG to make a written report of findings and conclusions of the investigation from 30 days to 60 days after notifying the local government.

 

4.      Grants local governments 60 days, rather than 30, to resolve the violation by either:

a)      repealing or amending the ordinance, regulation, order or other action (ordinance) or otherwise resolve the violation if repeal or amendment is not possible;

b)      appeal the AG's conclusion by filing a special action in the Supreme Court to resolve the issue; or

c)      suspend the ordinance under investigation during the pendency of the special action, unless a local government obtains a stay from the Supreme Court within 60 days.

 

5.      Adds the local government to the parties notified by the AG upon resolution of the violation.

 

6.      Removes requirement for the local government to post a bond equal to the amount of state shared revenue paid for the preceding six months.

 

7.      Requires the Supreme Court to give precedence to a special action filed by the AG and an appeal by a local government of the AG's determination.

 

8.      Stipulates that if the Supreme Court finds that the ordinance violates state law or the Constitution then the local government must repeal or amend the ordinance or otherwise resolve the violation.

 

9.      Stipulates that only after the resolution of the violation or an appeal of the determination to the Supreme Court has failed the State Treasurer will withhold the distribution of state shared revenues to the local government until the AG certifies the violation has been resolved.

 

10.  Prohibits the state treasurer from withholding any amount of state shared revenues that the local government certifies as being necessary to make any required deposits or payments for debt service on bonds or other long-term obligations that were issued or incurred before the AG's determination, instead of before the violation was committed.

 

11.  Makes technical and conforming changes.

 

12.  Becomes effective on the general effective date.