Assigned to APPROP AS
ENACTED
Assigned to APPROP AS
ENACTED
ARIZONA STATE SENATE
Fifty-Third Legislature, Second Regular Session
ENACTED
AMENDED
FACT SHEET FOR S.B. 1524/H.B. 2667
budget procedures; budget reconciliation; 2018-2019
Purpose
Makes statutory and session law changes relating to budget procedures necessary to implement the FY 2019 state budget.
Background
The Arizona Constitution prohibits substantive law from being included in the general appropriations, capital outlay appropriations and supplemental appropriations bills. However, it is often necessary to make statutory and session law changes to effectuate the budget. Thus, separate bills called budget reconciliation bills (BRBs) are introduced to enact these provisions. Because BRBs contain substantive law changes, the Arizona Constitution provides that they become effective on the general effective date, unless an emergency clause is enacted.
S.B. 1524/ H.B. 2667 contains the budget reconciliation provisions for changes relating to budget procedures.
Provisions
Arizona Department of Administration (ADOA)
1. Increases state-owned building square-footage rental rates from $13.08 to $16.08 for office space and from $4.74 to $5.79 for storage space.
2. Requires agencies that receive state monies, except universities, community college districts and the Board of Regents, to submit the total number of FTEs and salary amounts, delineated by employee tier, retirement system and fund source, to ADOA for transmittal to the JLBC and the Governor's Office of Strategic Planning and Budgeting (OSPB) by October 1, annually.
3. Requires biennially appropriated agencies to be annually appropriated.
4. Extends the deadline, from June 1 to July 1, for the OSPB transmission of budget request forms to state agencies.
Technology Projects - ADOA
5. Increases agency contributions to the Information Technology Fund from 0.20 percent of payroll to 0.30 percent of payroll.
6. Requires the Information Technology Authorization Committee to approve or deny any proposed information technology projects expected to exceed $1,000,000 and involving more than one state department, commission, board, institution or other executive agency.
7. Requires Automation Project Fund (APF) expenditure plans submitted to JLBC for review to include the project cost, deliverables, timeline for completion and method of procurement.
8. Requires ADOA to establish separate APF subaccounts, subject to legislative appropriation, for each agency that implements automation or technology projects and prohibits fund transfers between subaccounts.
Capitol Mall - ADOA
9. Repeals the Capitol Mall Commission and delegates its authority to ADOA.
10. Establishes the Capitol Mall Consolidation Fund consisting of legislatively appropriated monies for JLBC-approved building renewal or renovation.
11. Appropriates, to the Capitol Mall Consolidation Fund, proceeds from the sale of the following state-owned properties:
a) the building at 2910 North 44th Street in Phoenix;
b) the building at 2162 North Vickey Street in Flagstaff; and
c) the land at the corner of South Horne Street and East Baseline Road in Mesa.
12. Requires JLBC to approve or deny any proposed contract for placement of a light rail station in the governmental mall within 120 days of agreement submission to the JLBC.
Joint Legislative Audit Committee
13. Continues, retroactive to July 1, 2018, the Joint Legislative Audit Committee until July 1, 2026.
Arizona Department of Transportation (ADOT)
14. Establishes a fee, set by ADOT rulemaking, for a second requested special license plate.
15. Repeals the requirement that ADOT must issue a third special license plate on request.
Fund Expenditures
16. Allows the Secretary of State to pay for election services with monies in the Record Services Fund and Data Processing Acquisition Fund.
17. Allows the Department of Insurance to pay for surprise out-of-network medical billing arbitration with FY 2019 and FY 2020 monies in the Assessment Fund for Voluntary Plans.
18. Allows the Department of Revenue to pay for general operating expenses with monies in the Liability Setoff Program Revolving Fund.
19. Allows Personnel Division Fund monies to be appropriated to the Governor's Office of Equal Opportunity.
Retirement
20. Requires Arizona State Retirement System, Public Safety Personnel Retirement System and Elected Officials' Defined Contribution Disability Program Trust Fund annual reports to be submitted to the Legislature and the Governor by December 1 of each year, rather than December 15 or December 31.
Miscellaneous
21. Exempts the Legislature from Budget Stabilization Fund appropriation requirements in FY 2019, FY 2020 and FY 2021.
22. Deposits all unrestricted federal monies, received between July 1, 2018, and June 30, 2019, in the state General Fund for essential government services.
23. Repeals the inactive Pipeline Safety Revolving Fund and transfers remaining balances to the state General Fund.
24. Makes technical and conforming changes
25. Becomes effective on the general effective date, with a retroactive provision as noted.
Amendments Adopted by Committee of the Whole
1. Establishes a 120-day time frame for JLBC approval or denial of an agreement for the placement of a light rail station in the governmental mall.
2. Makes a technical change.
Senate Action House Action
APPROP 5/1/18 DP 6-4-0 APPROP
3rd Read 5/2/18 16-13-1 3rd Read 5/3/18 33-26-11
(S.B. 1524 was substituted for H.B. 2667 on 3rd Read)
Signed by the Governor 5/3/18
Chapter 279
Prepared by Senate Research
May 7, 2018
GH/lb