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ARIZONA STATE SENATE
Fifty-Fourth Legislature, First Regular Session
Arizona power authority
Purpose
Requires the Arizona Power Authority (APA) budget to coincide with the federal fiscal year and modifies time frames and requirements for APA budgets and audits.
Background
The APA is statutorily established to manage the development of Arizona's hydroelectric power from Colorado River waters and the sale of power to qualified purchasers (A.R.S. Title 30, Chapter 1). The APA is managed by the 5-member appointed APA Commission (Commission). Statute requires the Commission to submit an annual report of transactions, proceedings and recommendations for each fiscal year to the Legislature and Governor by December 1 (A.R.S. §§ 30-105 and 30-108).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires the APA budget and audit fiscal years to coincide with the federal fiscal year of October 1 through September 30.
2. Requires the APA to adopt, by September 30, rather than July 1, its administrative budget for the next succeeding fiscal year.
3. Requires the Commission to submit, by January 1, rather than December 1, its annual report for each year.
4. Removes the $75,000 limit for the APA's administrative budget for each fiscal year.
5. Removes the requirement that the APA administrative budget include a complete statement of administrative expenditures for the preceding fiscal year.
6. Removes the requirement that the APA administrative budget include a fixed amount for recurring expenses and a fixed amount for contingencies or unanticipated emergencies.
7. Removes the prohibition from APA administrative expenditures exceeding the total amount of the budget.
8. Removes the requirements that the APA operating budget:
a) consist of a full and complete statement of all incoming receipts and expenditures for the preceding fiscal year and an estimate of anticipated income and expenditures for the succeeding period;
b) give a complete asset and liability statement;
c) give a statement of profit and loss and an itemized statement of cash on hand, commitments, reserves and obligations for the succeeding fiscal year; and
d) include other information to give a full and complete disclosure of the current financial condition of the APA.
9. Directs the deposit of monies derived from APA operations to the appropriate APA fund.
10. Requires a power organization or state agency to audit operation funds on request of the APA, rather than annually.
11. Increases, from 30 days to 60 days, the time frame after the close of the fiscal year for when a power organization, state agency or municipality must complete a required audit of collateral deposits.
12. Makes technical changes.
13. Becomes effective on the general effective date.
House Action
NREW 2/5/19 DP 13-0-0-0
3rd Read 2/14/19 60-0-0
Prepared by Senate Research
March 4, 2019
KN/gs