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ARIZONA STATE SENATE
Fifty-Fourth Legislature, First Regular Session
ENACTED
AMENDED
FACT SHEET FOR h.b. 2751/S.B. 1550
budget procedures; budget reconciliation; 2019-2020.
Purpose
Makes statutory and session law changes relating to budget procedures 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.
H.B. 2751 contains the budget reconciliation provisions for changes relating to budget procedures.
Provisions
County Contributions to the Voter Registration System Fund
1. Establishes the County Contributions to the Voter Registration System Fund consisting of monies transferred from counties to the Secretary of State (SOS) pursuant to an agreement relating to developing and administering the statewide database of voter registration information.
2. Requires the SOS to administer the County Contributions to the Voter Registration System Fund and specifies that monies in the Fund are continuously appropriated to the SOS to develop and administer the statewide database of voter registration information.
3. Exempts monies in the County Contributions to the Voter Registration Fund from lapsing.
Motor Vehicle Pool Consolidation Fund
4. Establishes, beginning July 1, 2020, the Motor Vehicle Pool Consolidation Fund which is administered by the Arizona Department of Transportation (ADOT) and consists of monies transferred from the Motor Vehicle Pool Revolving Fund.
5. Requires Motor Vehicle Pool Consolidation Fund monies to 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.
6. Specifies that monies in the Motor Vehicle Pool Consolidation Fund are subject to legislative appropriation and exempt from lapsing.
2020 Presidential Preference Election (PPE)
7. Allows a political party eligible to participate in the 2020 PPE to opt out of participating in the PPE by sending a written notice to the SOS by September 16, 2019.
8. Requires the SOS, if a political party opts out of participating in the PPE, to notify each county recorder, officer in charge of elections and clerk of a county Board of Supervisors within five business days of receipt of the opt-out notice from the political party that the 2020 PPE for that party is canceled.
Fund Contributions, Expenditures and Transfers
9. Increases, from .30 percent to .43 percent of total payroll the pro rata share contributed by budget units and the legislative and judicial branches for deposit into the Information Technology Fund, retroactive to July 1, 2019.
10. Increases the Capital Outlay Stabilization Fund square-footage rental rates for state-owned buildings from $16.08 in FY 2019 to $17.87 in FY 2020 for office space and from $5.79 in FY 2019 to $6.43 in FY 2020 for storage space.
11. Allows monies in the State Web Portal Fund to be used for operating costs of the Government Transformation Office.
12. Allows, as permanent law, monies in the Liability Setoff Program Revolving Fund to be used for the general operating expenses of the Arizona Department of Revenue.
13. Transfers any unexpended and unencumbered monies remaining in the State Treasurer's Management Fund to the State Treasurer's Operating Fund.
14. Asserts that the Legislature is not required to appropriate monies to or transfer monies from the Budget Stabilization Fund in FY 2020, FY 2021 and FY 2022.
15. Continues to require, retroactive to July 1, 2019, any unrestricted federal monies received by Arizona in FY 2020 to be deposited in the state General Fund and to be used to pay essential governmental services.
Annual State Agency Budget Estimates
16. Prohibits state agencies from electronically submitting annual budget estimates of financial requirements and receipts to the Governor.
17. Requires the Governor to transmit forms on which budget estimates and requests for appropriations must be submitted to the administrative head of each budget unit by July 1 of each year, rather than by June 1 of each year.
18. Requires the administrative head of each budget unit to submit two copies, rather than five copies, of the budget unit's annual budget estimates of financial requirements and receipts to the Governor.
Governor's Office of Strategic Planning and Budgeting (OSPB)
19. Requires an allotment schedule to be approved and established by the OSPB, in addition to the ADOA, before monies from an authorized appropriation or any other source can be obligated.
20. Requires the OSPB, in addition to the ADOA, to approve a budget unit's transfer:
a) of spending authority from one expenditure class to another;
b) of spending authority between and within programs, if spending authority is appropriated to the budget unit by a program; or
c) to or from personal services or employee-related expenditures from or to any other budget program or expenditure class, if recommended by the Joint Legislative Budget Committee (JLBC).
21. Requires the OSPB, in addition to the JLBC, to approve a transfer of spending authority within the ADOA.
State Agency Reporting
22. Requires the Director of the ADOA to annually report, by December 1, to the JLBC:
a) the ADOA's expenditure plan for the current fiscal year for the Emergency Telecommunication Services Revolving Fund; and
b) the status of the ADOA's implementation of improvements to the 911 Emergency System.
23. Requires the ADOA to annually report, by December 1, to the JLBC on the Arizona Financial Information System transaction count by agency and fund source.
24. Requires the Industrial Development Authority to annually report, by October 1, revenues, expenditures and program activity for the previous fiscal year to the President of the Senate, Speaker of the House of Representatives and Directors of the JLBC and OSPB.
25. Requires the following Public Safety Personnel Retirement System (PSPRS) annual reports to be submitted by December 1 in 2019 and 2020, rather than by December 31:
a) the Corrections Officer Retirement Plan, Elected Officials' Retirement Plan and PSPRS final reports on the contribution rate for the ensuing fiscal year;
b) the reports on the status of the Elected Officials' Defined Contribution Retirement System and Public Safety Personnel Defined Contribution Retirement Plan;
c) the detailed report of the operation and investment performance of the Elected Officials' Defined Contribution Disability Program, including the contribution rate for the ensuing fiscal year; and
d) the report on the shared-cost structure of employees and employers, the funding status, rate of return and when the trigger of reduction in the employee rate is met for the PSPRS.
26. Requires, by October 1, 2019, and October 1, 2020, the ADOA and ADOT to submit a joint report to the JLBC on transitioning the operation of the state motor vehicle fleet from the ADOA to ADOT.
27. Requires the joint-report submitted by the ADOA and ADOT to identify suggested legislative changes that are required to fully implement the transition.
Miscellaneous
28. Requires the ADOA to submit a proposed transaction fee for state agencies that use the Arizona Financial Information System to the JLBC before establishing or changing the fee, rather than submitting proposed transaction fees to the JLBC for review before establishing or changing the fee.
29. Makes technical and conforming changes.
30. Becomes effective on the general effective date, with retroactive provisions as noted.
Amendments Adopted by Committee of the Whole
1. Allows a political party to opt out of participating in the 2020 PPE by sending written notice to the SOS by September 16, 2019.
2. Requires the SOS, within five business days of receipt of the written opt-out notice by the political party, to notify the county recorder, officer in charge of elections and clerk of a county Board of Supervisors that the 2020 PPE for that party is canceled.
3. Makes the increased Information Technology Fund contribution rate of .43 percent of the total payroll, retroactive to July 1, 2019.
House Action Senate Action
APPROP 5/22/19 DP 7-4-0-0 APPROP 5/22/19 DPA 6-4-0
3rd Read 5/24/19 31-29-0 3rd Read 5/27/19 16-13-1
(H.B.
2751 was substituted for S.B. 1550 on
3rd Read)
Signed by the Governor 5/31/19
Chapter 267
Prepared by Senate Research
June 4, 2019
MH/gs