State SealARIZONA HOUSE OF REPRESENTATIVES

 

HB2756: revenue; budget reconciliation; 2019-2020.

PRIME SPONSOR: Representative Bowers (with permission of committee on Rules), LD 25

BILL STATUS: House Engrossed

                               

 

Overview

Contains budget reconciliation provisions relating to the Ways & Means Committee needed for implementing the FY 2020 budget.☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note

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

1.       Requires the annual report published by the Governor's Office of Strategic Planning and Budget to include a detailed estimate of the cost to this state in the next fiscal year attributable to a county's, city's or town's establishment of a minimum wage if that wage exceeds the state minimum wage. (Sec. 2)

2.       Allows the Legislature to allocate, and the Arizona Department of Administration (ADOA) to collect from a county, city or town, an amount to reimburse the state for any excess cost to the state. (Sec. 3)

3.       Requires ADOA to assess the amount to be reimbursed by the county, city or town no later July 1 of each year. (Sec. 3)

4.       Requires the ADOA, if the county, city or town does not pay the amount allocated on or before December 31 of the year of the allocation, to notify the State Treasurer, who shall subtract the amount owed from any payments made for state shared revenue, retroactive to the first day the amount was due. (Sec. 3)

5.       Requires the State Treasurer, if the amount of state shared revenue is insufficient, to withhold from any other monies payable to that county, city or town from whatever state funding source is available an amount necessary to fulfill the requirement. (Sec. 3)

6.       Defines closed construction, commercial, open construction and residential as they pertain to manufactured housing. (Sec. 4)

7.       Excludes a panelized commercial building using open construction and a panelized residential building using open or closed construction from the definition of a factory-built building. (Sec. 4)

8.       Establishes a public safety interoperability fund consisting of monies appropriated by the legislature, which may only be used for interoperable communication systems. (Sec. 5)

9.       Requires licensed escrow agents to file an information return, using the same form and format of the return filed with the internal revenue service, to the Department of Revenue (DOR) by March 31 for the sale of real property in this state that are closed by December 31 of the prior year. (Sec. 6)

10.   Requires DOR, on or before June 30, 2020, to report to the Joint Legislative Budget Committee and the Governor's Office of Strategic Planning and Budgeting on the estimated amount of capital gains tax paid by nonresidents on real estate transactions from the most recent year before tax year 2019 based on internal revenue service data. (Sec. 6)

11.   Requires DOR, on or before June 30 of each year, to report to the Joint Legislative Budget Committee and the Governor's Office of Strategic Planning and Budgeting on the amount of capital gains tax paid by nonresidents on real estate transactions in the prior tax year based on the information returns prescribed. (Sec. 6)

12.   Expands the definition of multistate service provider to include a taxpayer that has more than 2,000 employees in this state and that derives more than 85% of its sales from support services provided to a regionally accredited institution of higher education. (Sec. 7)

13.   Provides that, in the case of a multistate service provider, the benefit of support services shall be deemed received at the billing address of the student to which the service relates. (Sec. 8)

14.   Continues, as session law, the Department of Gaming's Regulatory Wagering Assessment at the current rate of 0.5% of the amounts wagered for FY 2020. (Sec. 9)

15.   Continues, as session law, to prohibit the Director of the Department of Insurance from modifying fees or assessments in FY2020 for the purpose of meeting the statutory requirement that the department recover between 95% and 110% of its appropriated budget. (Sec. 10)

16.   Allows, as session law, the Director of the Arizona Department of Agriculture (ADA), with the assistance of the ADA advisory council, to continue, increase or decrease existing fees in FY 2020. (Sec. 11)

17.   States it is the Legislature's intent that the additional revenues generated by the ADA fees do not exceed:
a.     $218,000 to the state General Fund;
b.    $113,000 to the Pesticide Trust Fund; and
c.     $26,000 to the Dangerous Plants, Pests and Diseases Trust Fund. (Sec. 11)

18.   Continues to exempt the ADA from rulemaking requirements, until July 1, 2020, for the purpose of establishing fees. (Sec. 11)

19.   Continues, as session law, to permit a county with a population of less than 250,000 to use any source of county revenue up to $1.25 million to meet its FY 2020 obligations. (Sec. 12)

20.   Requires, by October 1, 2019, all counties with a population of less than 250,000 to report to JLBC the specific source and amount of revenues the county intends to use to meet the fiscal obligation in FY 2020. (Sec. 12)

21.   Continues, as session law, the legislative intent regarding the total amount of fees for all counties, cities, towns, councils of government and regional transportation authority to fund DOR are not to exceed $20,755,835 in any fiscal year and that those fees assessed to each local government must be in proportion to the distribution of revenues in the fiscal years two years prior to the current fiscal year. (Sec. 13)

22.   Provides an effective date for A.R.S. § 43-1147 of from and after December 31, 2019.

23.   Contains technical and conforming changes.

24.    

25.    

26.   ---------- DOCUMENT FOOTER ---------

27.   Fifty-fourth Legislature                       HB 2756

28.   First Regular Session                            Version 3: House Engrossed

29.    

30.   ---------- DOCUMENT FOOTER ---------