State SealARIZONA HOUSE OF REPRESENTATIVES

 

HB 2751: budget procedures; budget reconciliation; 2019-2020.

PRIME SPONSOR: Representatives Cobb, LD 5

BILL STATUS: Transmitted to Governor

                               

 

Overview

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteContains budget procedures and reconciliation provisions needed for implementing the FY 2020 budget.

History

The Arizona Legislature adopts a budget for each fiscal year (FY) that contains general appropriations. Article IV, Section 20, Part 2, Constitution of Arizona, requires the General Appropriations Act (feed bill) to contain only appropriations for the different state departments, state institutions, public schools and interest on public debt. Statutory changes necessary to reconcile the appropriations made in the feed bill and other changes are drafted into separate bills known as Budget Reconciliation Bills (BRBs). These BRBs are prepared according to subject area.

Provisions

Secretary of State (SOS)

1.       Establishes the County Contributions to the Voter Registration System Fund (Voter Fund) consisting of monies transferred from counties to the SOS pursuant to an agreement between a county and the SOS relating to developing and administering the statewide database of voter registration information required by statute. (Sec. 1)

2.       Continuously appropriates monies to the SOS and exempts the funds from statutes relating to lapsing of appropriations. (Sec. 1)

3.       Stipulates that the SOS will administer the Voter Fund. (Sec. 1)

Statewide

4.       Allows state agencies to submit all statutorily required reports and budget estimates electronically, except those required by statute that are submitted to the Governor. (Sec. 2)

5.       Increases the pro rata share for all budget units, legislative and judicial branches of state government for information technology services from 0.30% to 0.43% of the total payroll, effective retroactively to July 1, 2019. (Sec. 3, 20)

6.       Modifies the deadline for the Governor to provide the forms for budget units to submit their budget estimates and request for appropriations from June 1 to July 1 each year. (Sec. 6)

7.       Reduces the number of copies of budget estimate submissions the administrative head of each budget unit must submit to the Governor from five to two copies. (Sec. 7)

8.       Requires state agencies to seek approval from the Governor's Office of Strategic Planning and Budgeting (OSPB) before monies from an authorized appropriation can be obligated and before a transfer of spending authority. (Sec. 8)

 

Transportation

9.       Establishes, beginning July 1, 2020, the Motor Vehicle Pool Consolidation Fund (Consolidation Fund) consisting of monies transferred from the Motor Vehicle Pool Revolving Fund established in statute. (Sec. 5)

10.   Requires the Arizona Department of Transportation (ADOT) to administer the Consolidation Fund. (Sec. 5)

11.   Stipulates that monies in the Consolidation Fund are subject to legislative appropriation and are exempt from statutes relating to lapsing of appropriations. (Sec. 5)

12.   Specifies that monies in the Consolidation Fund must be used to reimburse ADOT for costs related to implementing an intergovernmental agreement with the Arizona Department of Administration (ADOA) to operate the State Motor Vehicle Fleet established in statute. (Sec. 5)

ADOA

13.   Includes the operating costs of the Government Transformation Office to the allowable uses of the State Web Portal Fund. (Sec. 4)

14.   Requires the director of ADOA to submit a report by December 1 of each year to the director of the Joint Legislative Budget Committee (JLBC) containing the following:

a.       The expenditure plan of ADOA for the current fiscal year for the Emergency Telecommunication Services Revolving Fund established by statute; and

b.       The status of the implementation by ADOA of improvements to the 911 emergency system. (Sec. 9)

15.   Eliminates the JLBC review requirement for the Arizona Financial Information System (AFIS) transaction fee. (Sec. 10)

16.   Directs ADOA to submit a report by December 1 of each year to JLBC on the AFIS transaction count by agency and fund source. (Sec. 10)

Office of Economic Opportunity

17.   Requires the Arizona Industrial Development Authority (Authority) to submit a report by October 1 of each year regarding the Authority's revenues, expenditures and program activity to the following people:

a.       The President of the Senate;

b.       The Speaker of the House of Representatives; and

c.        The directors of JLBC and OSPB. (Sec. 11)

Department of Revenue (DOR)

18.   Continues to allow the monies in the Liability Setoff Program Revolving Fund to also be used for general operating expenses of DOR. (Sec. 12)

Session Law

19.   Retroactively to July 1, 2019 through June 30, 2020, continues to require any unrestricted federal monies to be deposited in the General Fund to pay essential governmental services. (Sec. 13)

20.   Increases the Capital Outlay Stabilization Fund rental rates for state-owned buildings in FY 2020 to $17.87 per square foot for office space and $6.43 per square foot for storage space. (Sec. 14)

21.   Continues to assert that the Legislature is not required to appropriate monies to or transfer monies from the Budget Stabilization Fund for FY 2020 through FY 2022. (Sec. 15)

22.   Requires ADOA and ADOT to submit a joint report by October 1, 2019 and October 1, 2020 to JLBC on transitioning the operation of the State Motor Vehicle Fleet established in statute from ADOA to ADOT. (Sec. 16)

23.   Transfers any unexpended and unencumbered monies remaining in the State Treasurer's Management Fund to the State Treasurer's Operating Fund on the effective date of this legislation. (Sec. 17)

24.   Specifies that the annual report on contribution rate for the ensuing fiscal year by the Public Safety Personnel Retirement System is due by December 1 of each year in 2019 and 2020. (Sec. 18)

25.   Allows a political party that is eligible to participate in the 2020 presidential preference election to opt out of participating in the presidential preference election if they send a written notice to the Secretary of State by September 16, 2019. (Sec. 19)

26.   Requires the Secretary of State to notify each county recorder and officer in charge of elections and the clerk of each county board of supervisors, if a political party opts out of participating in the presidential preference election, no later than five business days after receiving the written notice. (Sec. 19)

Miscellaneous

27.   Makes technical and conforming changes. (Sec. 2, 4, 6, 8, 9, 11, 12)

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31.   Fifty-fourth Legislature                       HB 2751

32.   First Regular Session                            Version 4: Transmitted

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34.   ---------- DOCUMENT FOOTER ---------