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ARIZONA STATE SENATE
Fifty-Fourth Legislature, Second Regular Session
revenue; budget reconciliation; 2020-2021.
Purpose
Makes statutory and session law changes relating to general revenues necessary to implement the FY 2021 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.
S.B. 1684 contains the budget reconciliation provisions for changes relating to general revenues.
Provisions
Department of Insurance and Financial Institutions (DIFI)
1. Removes the requirement that the Director of DIFI revise all fees within the statutory limits, if the revenues collected from fees during the prior fiscal year is less than 95 percent or more than 110 percent of the appropriated budget for the current fiscal year.
2. Removes the requirement that the Director of DIFI revise the fees in a manner that the revenue derived from the fees during the subsequent fiscal year equals at least 95 percent but not more than 110 percent of the appropriated budget for the current fiscal year.
3. Removes the requirement that the Director of DIFI annually revise the fee of $1,050 assessed on each insurer authorized to transact business in Arizona for the administration and operation of the Fraud Unit within DIFI to equal at least 95 percent and not more than 110 percent of the budget of the Fraud Unit within DIFI.
Arizona Department of Agriculture (AZDA)
4. Continues to allow AZDA to continue, increase or lower existing fees from FY 2019 and FY 2020 in FY 2021 for services provided in FY 2021.
5. Limits additional revenues generated by the continuation, increase or reduction of existing AZDA fees to:
a) $218,000 for the state General Fund;
b) $113,000 for the Pesticide Trust Fund; and
c) $26,000 for the Dangerous Plants, Pests and Diseases Trust Fund.
6. Exempts AZDA from rulemaking requirements for the purpose of establishing fees until July 1, 2021.
Counties
7. Continues to allow counties with a population of fewer than 250,000 persons to use any source of county revenue, up to $1,250,000, to meet any county fiscal obligation in FY 2021.
8. Continues to require a county using the flexible authority to report to the Director of the Joint Legislative Budget Committee by October 1, 2020 on:
a) whether the county used a revenue source for purposes other than the purposes of the revenue source to meet a county fiscal obligation; and
b) the specific source and amount of revenues that the county intends to use in FY 2021.
Arizona Department of Gaming (ADG)
9. Continues to require the ADG, in FY 2021, to establish and collect, in addition to amounts already authorized, a regulatory assessment from each commercial racing permittee in the amount of 0.5 percent of the amounts wagered, payable from pari-mutuel pools from in-state and out-of-state live and simulcast races.
Arizona Department of Revenue (ADOR)
10. Continues to express the Legislature's intent that local fees to fund ADOR not exceed $20,755,835 in any fiscal year and are to be allocated among cities, towns, counties, the Maricopa Association of Governments and the Pima Association of Governments based on the prorated share of all distributed revenues, excluding Highway User Revenue Fund monies.
Miscellaneous
11. Makes technical and conforming changes.
12. Becomes effective on the general effective date.
Prepared by Senate Research
March 18, 2020
MG/gs