Chapter 0041 - 541R - H Ver of HB2274

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 30-108, Arizona Revised Statutes, is amended to read:

START_STATUTE30-108. Powers and duties of commission; annual report

A. The members of the commission shall devote to their duties as members such time and attention as is necessary to effectuate the purposes of this chapter and to carry out their duties and exercise their powers. The commission shall designate a person or persons who shall execute all documents and instruments on behalf of the authority.

B. The commission shall acquire suitable offices, furnishings and articles of equipment and necessary supplies.

C. Subject to title 41, chapter 4, article 4, the commission may employ a person in the capacity of director, manager or chief engineer who shall be a duly licensed engineer, but who need not be a resident or licensed in this state. The person shall be actively engaged in the practice of the person's profession and trained and experienced in the performance of the person's duties. The person shall not hold any other public office or have any interest in a business that may be adversely affected by the operation of the authority in the exercise of the authority's powers and discharge of the authority's duties.

D. The commission shall make and submit to the governor, the president of the senate, the speaker of the house of representatives, the chairman of the senate natural resources, energy and water committee and the chairman of the house of representatives energy, environment and natural resources committee, or their successor committees, on or before December January 1 each year a report containing a full and complete account of the commission's transactions and proceedings for the preceding fiscal year, together with other facts, suggestions and recommendations deemed of public value.END_STATUTE

Sec. 2. Section 30-201, Arizona Revised Statutes, is amended to read:

START_STATUTE30-201. Administrative and operation budgets

A. The authority shall on or before July 1 in September 30 each fiscal year adopt an administrative budget for the next succeeding fiscal year. The budget shall not exceed the amount of seventy‑five thousand dollars for each fiscal year, and shall consist of a complete statement of administrative expenditures from the fund during the past fiscal year and an estimate of the different amounts which expenditures that may be deemed necessary to meet administrative requirements of the authority for the ensuing fiscal year, fixing the amounts proposed for all recurring items of expense and an amount for contingencies or emergencies not anticipated. No administrative expenditures shall be made therefrom in excess of the total amount of the budget. Economies resulting in remaining balances for any fiscal year shall be available for subsequent administration or operating purposes.

B. The authority shall likewise also for each similar period fiscal year prepare an operation budget covering operations and including capital items. The budget shall consist of a full and complete statement of all incoming receipts and expenditures for the past fiscal year and an estimate of anticipated income and expenditures for the next ensuing period. The budget shall also give a complete asset and liability statement and statement of profit and loss, together with an itemized statement of cash on hand, commitments, reserves and obligations anticipated for the ensuing fiscal year, together with such other information as will give a full and complete disclosure of the current financial condition of the authority.

C. The original budgets shall be filed with the department of administration and copies thereof of the budgets with the governor and state treasurer.

D. The authority's budget and audit fiscal years shall be based on the federal fiscal year of October 1 through September 30. END_STATUTE

Sec. 3. Section 30-203, Arizona Revised Statutes, is amended to read:

START_STATUTE30-203. Receipt of monies; disbursements; operation of accounting system; annual audit

A. Monies due the authority under agreements for the sale of electric power or other service, proceeds of revenue bond issues or any other obligations may be made payable at the office of the authority. All monies derived from operations of the authority of any nature and received by any officer, agent or employee of the authority shall be deposited, pursuant to sections 35‑146 and 35‑147, in the appropriate Arizona power authority fund. All operation monies of the authority received shall be accounted for and kept separate from any monies made available to the authority by any legislative appropriation and shall be paid out only in accordance with the regularly adopted authority operation budget on warrants in discharge of claims and obligations approved by the authority commission, signed by the authority chairman and countersigned by the authority director or other duly authorized authority officer.

B. The appropriate claim vouchers shall be regularly entered in the operations accounting system of the authority and preserved and exhibited for auditing purposes. The operations accounting system set up by the authority shall conform as nearly as practicable to the uniform accounting system prescribed for public service corporations.

C. The department of administration may at any time examine the books, accounts and vouchers of the authority. On notice from the authority, 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. END_STATUTE

Sec. 4. Section 30-204, Arizona Revised Statutes, is amended to read:

START_STATUTE30-204. Audit of operation funds and collateral deposits

A. At the authority's request, a district and state agencies authorized to issue revenue bonds subject to approval of the state certification board shall cause an annual audit to be made of their respective operation funds. Districts, state agencies and municipalities pledging any assessments, funds or property presently owned or to be provided, accumulated or acquired shall similarly cause an audit to be made of their respective collateral deposits. The audits shall be made by a certified public accountant within thirty sixty days after the close of the respective fiscal years of the districts, state agencies and municipalities, and each shall file a certified copy thereof of the audits with the auditor general.

B. The auditor general may, if he deems it advisable, at the expense of the district, state agency or municipality concerned, may make such further audits and examinations as he the auditor general deems necessary and take appropriate action in relation thereto to the audits as provided by title 41, chapter 7, article 10.1. Unless the auditor general takes official action within thirty days after filing the audit, it the audit shall be deemed sufficient.

C. The audits shall be in lieu of all other official audits of all operation funds or collateral deposits of the districts, state agencies and municipalities, except as ordered by a court of competent jurisdiction. END_STATUTE