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ARIZONA STATE SENATE
Fifty-Fourth Legislature, First Regular Session
AMENDED
capital outlay; appropriations; 2019-2020
Purpose
Makes statutory and session law changes relating to capital outlay necessary to implement the FY 2020 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.
For the purposes of capital management and planning, the state is divided into three building systems: 1) the Arizona Department of Administration (ADOA) Building System; 2) the Arizona Department of Transportation (ADOT) Building System; and 3) the Arizona Board of Regents (ABOR) Building System. Capital appropriations are typically made through the Capital Outlay Act but may be made through other bills as well.
Building renewal appropriations provide for the major maintenance and repair of state‑owned buildings. The appropriations are based on support of a formula determined by the Joint Committee on Capital Review (JCCR). The formula accounts for the replacement value, age and life-cycle of a building.
S.B. 1549 contains the budget reconciliation provisions for changes relating to capital outlay.
Provisions
Building Renewal
1. Appropriates the following amounts in FY 2020 to the following state agencies from the specified funds for major maintenance and repair activities for state buildings:
|
Fund Source |
Amount |
% of Formula |
|
|
Arizona Department of Corrections (ADC) |
ADC Building Renewal Fund |
$6,864,300 |
28.3% |
|
Arizona Game and Fish Department (AZGFD) |
AZGFD Fund |
$1,043,700
|
100% |
|
Arizona State Lottery Commission |
State Lottery Fund |
$134,100 |
100% |
|
ADOT |
State Highway Fund |
$13,000,000 |
93%
|
|
State Aviation Fund |
$281,700 |
2. Appropriates $17,000,000 in FY 2020 to the ADOA from the Capital Outlay Stabilization Fund (COSF).
3. Continues to allow the ADOA to allocate up to $275,000 of its appropriated amounts to personal services and employee-related expenditures for up to five fulltime equivalent positions each fiscal year until the building renewal projects are completed.
4. Continues to prohibit the ADOA from spending other appropriated monies for personal services, employee‑related expenditures or maintenance contracts on building components and equipment without review by JCCR.
5. Continues to require the ADOA to allocate monies to state agencies for necessary building renewal.
6. Reduces the appropriation to the ADOA if monies in the COSF are insufficient to fund the appropriation to the ADOA for building renewal. Funding is reduced by the difference between the appropriated amount to the ADOA and the balance in the COSF.
7. Allows the ADOA to use monies appropriated for building renewal in FY 2020 for building demolition.
8. Prohibits ADC from spending any of the appropriation on personal services or overhead expenses relating to the management of the funded projects.
Capital Projects
9. Appropriates the following amounts in FY 2020 to the following agencies from the specified funds for capital projects:
|
Agency |
Purpose |
Fund |
Amount |
|
ADOA |
Replacement of air handler units at the House of Representatives (House) and Senate Buildings |
Legislative, Executive and Judicial Public Buildings Land Fund |
$1,000,000 |
|
ADOA |
Distribution to the City of Kingman for the construction of Interstate 40 traffic interchanges in Kingman east of State Route 66 |
state General Fund |
$20,000,000 |
|
ADOA |
Replacement of elevators at the House, Senate and Executive Tower buildings |
Legislative, Executive and Judicial Public Buildings Land Fund |
$4,100,000 |
|
ADOA |
Distribution to the City of Globe for the repair or replacement of the Jesse Hayes Road Bridge over Pinal Creek |
state General Fund |
$2,810,000 |
|
ADOA |
Distribution to the City of Mesa for the construction of a State Route 24 Bridge over Ellsworth Road |
state General Fund |
$6,500,000 |
|
ADOA |
Distribution to the Greater Nogales Santa Cruz County Port Authority for the construction of a cold inspection facility at the Mariposa port of entry |
state General Fund |
$700,000 |
|
Department of Emergency and Military Affairs (DEMA) |
Construction of a readiness center |
state General Fund |
$3,875,000 |
|
Capital Improvements |
Arizona Exposition and State Fair Fund |
$1,300,000 |
|
|
AESFB |
Building repairs on the 1938 Works Progress Administration civic building on the state fair grounds |
Arizona Exposition and State Fair Fund |
$400,000 |
|
AZGFD |
Dam maintenance |
Capital Improvement Fund |
$150,000 |
|
AZGFD |
Property maintenance |
Capital Improvement Fund |
$300,000 |
|
AZGFD |
Hatchery maintenance |
Capital Improvement Fund |
$400,000 |
|
Demolition of the existing pedestrian bridge and construction of a new pedestrian bridge at the Tonto Natural Bridge State Park |
State Parks Revenue Fund |
$1,250,000 |
|
|
Arizona Pioneers' Home |
Capital improvements |
Miners' Hospital for Minders with Disabilities Land Fund |
$414,000 |
|
Department of Public Safety (DPS) |
Construction of a radio communications tower near the Loop 202 freeway extension |
Board of Fingerprinting Fund |
$309,000 |
|
DPS |
Remote housing replacement |
Board of Fingerprinting Fund |
$2,400,000 |
|
ADOT |
Construction of new maintenance buildings in Seligman and Williams |
State Highway Fund (SHF) |
$2,300,000 |
|
ADOT |
Construction of new maintenance facilities in Wickenburg |
SHF |
$4,600,000 |
|
ADOT |
Expansion of Interstate 17 between Anthem and Black Canyon City |
SHF |
FY 2020: $40,000,000 |
|
FY 2021: $45,000,000 |
|||
|
FY 2022: $45,000,000 |
|||
|
ADOT |
Conducting a study on widening of Interstate 10 between Phoenix and Casa Grande |
state General Fund |
$10,000,000 |
|
ADOT |
Deposit in the SAF for the planning, construction, development and improvement of county, city and town airports |
state General Fund |
$10,000,000 |
|
ADOT |
Expansion of U.S. Route 95 between Yuma and the Yuma proving ground |
state General Fund |
$28,000,000 |
|
ADOT |
Construction and maintenance projects for streets and highways in counties, cities and towns |
state General Fund |
$18,000,000 |
|
ADOT |
Planning and construction of state highways |
SHF |
$393,432,000 |
|
ADOT |
Planning and construction of state, county, city and town airports |
SAF |
$33,120,000 |
10. Distributes the $18,000,000 appropriation from the state General Fund to ADOT equally to each city and town in Arizona.
11. Requires that monies distributed to cities and towns from the $18,000,000 appropriation be used only for street and highway projects, including construction and maintenance of streets or highways.
12. Requires that at least $1,000,000 of the FY 2020 $10,000,000 ADOT appropriation to the SAF be distributed to the Ernest A. Love Airport in Prescott.
13. Requires the ADOA to report to Joint Legislative Budget Committee (JLBC) staff the status of all capital projects and expenditures on or before January 31 and May 30, 2020.
14. Requires ADC and AZGFD to report to JLBC staff the status of all capital projects and expenditures by January 31 and July 31, 2020.
15. Requires ADOT to report to JLBC staff the status of all non-highway construction capital projects and expenditures on or before January 31 and July 31, 2020.
16. Requires the ADOA, DEMA, AESFB, AZGFD, ASPB, Arizona Pioneers' Home, DPS and ADOT to provide the scope, purpose and estimated cost of specified projects to JCCR for its review prior to spending the appropriation.
17. Specifies that certain appropriated monies do not lapse until the project is complete, abandoned or if a full fiscal year passes without an expenditure or an encumbrance.
18. Exempts specified ADOT and ADOA capital projects from individual review by JCCR.
19. Requires DPS to submit a report, by December 31, 2019, to JCCR for review that compares the cost of providing housing and the cost of providing a housing allowance for state troopers stationed in remote areas prior to spending monies appropriated for the replacement of remote housing.
20. Conditions the distribution of appropriated ADOA monies for the construction of a cold inspection facility at the Mariposa port of entry on the Greater Nogales Santa Cruz Port Authority submitting to the Directors of the JLBC, Governor's Office of Strategic Planning and Budgeting (OSPB) and ADOA stating that the Port Authority has raised sufficient monies to pay for the remainder of the project's budget.
21. Reverts the appropriation of $700,000, made to the ADOA for the construction of a cold inspection facility at the Mariposa port of entry, to the state General Fund on June 30, 2020, if the Greater Nogales Santa Cruz County port authority has not submitted a report to the Directors of the JLBC, OSPB and ADOA stating that the Port Authority has raised sufficient monies to fund the remainder of the project's budget by June 30, 2022.
22. Conditions the distribution of appropriated ADOA monies to the City of Mesa for the State Route 24 bridge project on the State Transportation Board adopting a five-year transportation facilities construction plan developed by the Director of ADOT that includes a project to construct a State Route 24 bridge over Ellsworth Road.
23. Reverts the appropriation of $6,500,000, made to the ADOA for the State Route 24 bridge project, to the state General Fund on June 30, 2020, if the State Transportation Board does not adopt a program that includes a project to construct a State Route 24 bridge over Ellsworth Road.
24. Conditions the distribution of appropriated ADOA monies to the City of Kingman for the Interstate 40 traffic interchange project on the City of Kingman submitting a report to the Directors of the JLBC, OSPB and ADOA stating that the City has raised sufficient monies to pay for the remainder of the project's budget.
25. Reverts the appropriation of $20,000,000 made to the ADOA for the Interstate 40 traffic interchange project, to the state General Fund on June 30, 2024, if the City of Kingman has not submitted a report to the Directors of the JLBC, OSPB and ADOA stating that the City has raised sufficient monies to fund the remainder of the project's budget by June 30, 2024.
26. Requires the AESFB to transfer an amount sufficient to complete the repayment of building renewal monies from the FY 2020 $1,300,000 appropriation to the ADOA.
27. Specifies that the amount appropriated for highway construction from the State Highway Fund (SHF) and any balances and collections in the SHF in excess of the specific amount appropriated are appropriated to ADOT for the planning and construction of:
a) state and interstate highways within the state;
b) state and county primary or secondary system and urban rural routes;
c) acquisition of rights-of-way;
d) the cost of contracted field administration; and
e) field engineering on construction projects and debt service payments on bonds.
28. Requires ADOT, by November 1, 2019, to report on its actual prior year, estimated current year and upcoming budget year highway construction expenses from all fund sources to the Directors of the JLBC and OSPB.
29. Specifies that the report must be in the same format as the prior year unless modifications have been approved by the Directors of the JLBC and OSPB.
30. Requires ADOT, by November 1, 2019, to report capital outlay information for FY 2019, FY 2020 and FY 2021 to the Directors of the JLBC and OSPB and prescribes a format for the report.
31. Requires ADOT, by November 1, 2019, to report its estimated outstanding debt principal balance at the end of FY 2021 and the estimated debt service payment amount for FY 2021, FY 2022, FY 2023 and FY 2024 to the Directors of the JLBC and OSPB.
32. States that the ADOT estimated outstanding debt principal balance report is intended to be comparable to the information in the FY 2019 appropriations report and requires the report to include:
a) SHF statewide construction bonds;
b) Arizona Highway User Revenue Fund bonds;
c) Maricopa Association of Governments and Pima Association of Governments controlled access bonds;
d) Maricopa Regional Area Road Fund bonds; and
e) grant anticipation notes.
33. Specifies that the amount appropriated for airport construction from the State Aviation Fund (SAF) and any balances and collections in the SAF in excess of the specific amount appropriated are appropriated to ADOT for the planning, construction, development and improvement, as determined by the State Transportation Board, for state, county, city or town airports.
34. Requires ADOT, by December 31, 2019, to report the status of all aviation grant awards and aviation grant distributions to JLBC staff. The report must delineate projects by airport and fiscal year, including any future year commitments.
35. Requires ASPB to report to JLBC staff the status of all capital projects and capital expenditures by January 31 and July 31, 2020.
Miscellaneous
36. Prohibits the use of appropriated monies for personal services or employee-related expenditures of state employees, unless otherwise specified, excluding any services provided as part of the Inmate Construction Program for correctional facilities.
37. Reverts the following appropriations remaining unexpended on June 30, 2020, to the Funds from which the monies were appropriated:
a) $4,000,000 to ASPB for the Rockin' River Ranch State Park Project made by Laws 2017, Chapter 306; and
b) $1,300,000 to ASPB for capital improvements made by Laws 2017, Chapter 306.
38. Reverts the FY 2019 and FY 2020 appropriations remaining unexpended on June 30, 2021, to the Funds from which the monies were appropriated except as outlined.
39. Reverts the
FY 2018 appropriation of $10,000,000 to the ADOA for the renovation of
state-owned buildings made by Laws 2018, Chapter 277, that remains unexpended
on June 30, 2021, to the Fund from which the monies were appropriated.
41. Removes the FY 2016 appropriation allocation of $120,000 for the repair of the 1938 Works Progress Administration civic building and the requirement that the ADOA receive matching monies from the City of Phoenix in order to spend the allocated monies for the repairs.
42. Becomes effective on the general effective date.
Amendments Adopted by Committee of the Whole
1. Specifies that the FY 2020 $700,000 ADOA appropriation for the construction of a cold inspection facility at the Mariposa port of entry will be distributed to the Greater Nogales Santa Cruz County Port Authority by the ADOA.
2. Extends the reporting deadline, from June 30, 2021, to June 30, 2022, for the Greater Nogales Santa Cruz County Port Authority to submit a report to outlined recipients to prevent the $700,000 ADOA appropriation from reverting to the state General Fund.
3. Exempts the cold inspection facility project at the Mariposa port of entry from individual review by JCCR.
4. Requires the AESFB to transfer an amount sufficient to complete the repayment of building renewal monies, rather than $100,000, to the ADOA.
5. Requires that at least $1,000,000 of the FY 2020 $10,000,000 ADOT appropriation to the SAF be distributed to the Ernest A. Love Airport in Prescott.
6. Replaces the population-based distribution of the FY 2020 $18,000,000 appropriation to ADOT for cities, towns and counties with an equal distribution to each city and town in Arizona.
7. Makes technical and conforming changes.
Senate Action
APPROP 5/22/19 DP 6-4-0
Prepared by Senate Research
May 25, 2019
LMM/DRD/kja