ARIZONA STATE SENATE
Fifty-Fourth Legislature, Second Regular Session
ENACTED
FACT SHEET FOR S.B. 1691/H.B. 2908
capital outlay; appropriations; 2020-2021.
Purpose
Makes statutory and session law changes relating to capital outlay 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.
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 lifecycle of a building.
S.B. 1691 contains the budget reconciliation provisions for changes relating to capital outlay.
Provisions
Building Renewal
1. Appropriates the following amounts in FY 2021 to the following agencies from the specified Funds for major maintenance and repair activities for state buildings:
|
Agency |
Fund |
Amount |
|
Arizona Department of Corrections (ADC) |
ADC Building Renewal Fund |
$5,464,300 |
|
Arizona Game and Fish Department (AZGFD) |
AZGFD Fund |
$1,157,900 |
|
Arizona State Lottery Commission |
State Lottery Fund |
$146,700 |
|
ADOT |
State Highway Fund (SHF) |
$13,000,000 |
|
State Aviation Fund |
$281,700 |
2. Appropriates $16,000,000 from the Capital Outlay Stabilization Fund (COSF) in FY 2021 to ADOA for the allocation to state agencies for necessary building renewal.
3. Continues to allow up to $275,000 of the monies appropriated to ADOA to be used for personal services and employee-related expenditures for up to five full-time equivalent positions each fiscal year until building renewal projects are completed.
4. Continues to prohibit all other appropriated monies from being used for personal services, employee-related expenditures or maintenance contracts on building components and equipment without review by the JCCR.
5. Reduces the appropriation to ADOA for building renewal by the difference between the amount appropriated and the balance in the COSF, if monies in the COSF are insufficient to fund the appropriation.
6. Requires ADOA to report, by January 31, 2021, and July 31, 2021, to the Joint Legislative Budget Committee (JLBC) on the status of all capital projects and expenditures.
7. Prohibits ADC from spending any monies from the appropriation on personal services or overhead expenses related to managing projects funded by the appropriation.
8. Requires ADC and AZGFD to report, by January 31, 2021, and July 31, 2021, to JLBC on the status of all capital projects and expenditures.
9. Requires ADOT to report, by January 31, 2021, and July 31, 2021, to JLBC on the status of all nonhighway construction capital projects and expenditures.
10. Reverts unexpended appropriations on June 30, 2022, back to the fund from which they were appropriated.
Capital Projects
11. Appropriates the following monies from the following funds in FY 2021 to ADC to replace locking, heating, ventilation and air conditioning (HVAC) and fire suppression systems at the Lewis and Yuma State Prison Complexes:
a) $11,000,000 from the state General Fund;
b) $7,000,000 from the Arizona Correctional Industries Revolving Fund;
c) $4,000,000 from the Corrections Fund;
d) $2,000,000 from the Inmate Store Proceeds Fund;
e) $2,000,000 from the Penitentiary Land Fund;
f) $2,000,000 from the State Charitable, Penal and Reformatory Institutions Fund; and
g) $2,000,000 from the Special Services Fund.
12. Requires ADC to submit the scope, purpose and estimated cost of capital improvements to the JCCR for review before spending appropriations.
13. Reverts appropriations, if unexpended by June 30, 2022, made to ADC to replace locking, HVAC and fire suppression systems at the Lewis and Yuma State Prison Complexes back to the Funds from which they were appropriated.
ADOT Statewide Highway Construction
14. Appropriates $378,733,000 from the SHF in FY 2021 to ADOT to plan and construct state highways, acquire rights-of-way and provide for the cost of contracted field administration and engineering on construction projects and debt service payments on bonds issued for highway construction.
15. Appropriates balances and collections in the SHF that exceed the amount appropriated by the General Appropriations Act and the Capital Outlay Budget Reconciliation Act to ADOT for authorized purposes.
16. Requires ADOT, by November 1, 2020, to report to the Directors of JLBC and the Governor's Office of Strategic Planning and Budgeting (OSPB) on:
a) ADOT's actual prior year, estimated current year and upcoming budget year highway construction expenses from all fund sources;
b) capital outlay information for FYs 2020, 2021 and 2022; and
c) ADOT's estimated outstanding debt principal balance at the end of FY 2022 and the estimated debt service payment amounts for FYs 2022, 2023, 2024 and 2025.
17. Requires ADOT's highway construction expenses report to:
a) include appropriated monies, federal monies, local agency monies, state highway monies, bond proceeds and regional area road monies; and
b) be in the same format as the prior year, unless modifications have been approved by the Directors of JLBC and OSPB.
18. Requires ADOT's reported capital outlay information to be in the same format as tables two, three and six of the FY 2020 Appropriations Report.
19. Requires ADOT's estimated outstanding debt principal balance and estimated debt service payment report to include SHF state construction bonds, Arizona Highway User Revenue Fund bonds, Maricopa Association of Governments and Pima Association of Governments controlled access bonds, Maricopa Regional Area Road Fund bonds and grant anticipation notes.
20. Specifies that ADOT's estimated outstanding debt principal balance and estimated debt services payment report to be comparable to the information in the FY 2020 Appropriations Report.
21. Exempts the appropriation to ADOT for state highway construction from:
a) review by the JCCR; and
b) lapsing until the purpose for which the appropriation was made has been accomplished or abandoned or the appropriation stands for a full fiscal year unexpended or unencumbered.
ADOT Airport Planning and Development
22. Appropriates $30,900,000 from the State Aviation Fund in FY 2021 to ADOT to plan, construct, develop and improve state, county and city or town airports as determined by the State Transportation Board.
23. Appropriates any balances and collections in the State Aviation Fund that exceed the amount appropriated by the General Appropriations Act and the Capital Outlay Budget Reconciliation Act to ADOT for authorized purposes.
24. Requires ADOT, by December 31, 2020, to report to JLBC on the status of all aviation grant awards and distributions and requires the report to delineate projects by individual airport and fiscal year, including future fiscal year commitments.
25. Exempts the appropriation to ADOT for airport planning and development from:
a) JCCR review; and
b) lapsing until the purpose for which the appropriation was made has been accomplished or abandoned or the appropriation stand for a full fiscal year unexpended or unencumbered.
Miscellaneous
26. Prohibits the use of appropriated monies from being spent for personal services or employee‑related expenditures of state employees, except for services provided as part of the Inmate Construction Program for correctional facilities.
27. Specifies that the FY 2019 appropriation to the Department of Emergency and Military Affairs (DEMA) for construction of a readiness center that remains unexpended on June 30, 2022, reverts to the fund from which it was appropriated.
28. Specifies that the FY 2020 appropriation to DEMA for construction of a readiness center that remains unexpended on June 30, 2023, reverts to the fund from which the monies were appropriated.
29. Requires the JCCR to review the scope, purpose and estimated cost of a new capital project that has an estimated cost of more than $250,000.
30. Becomes effective on the general effective date.
Senate Action House Action
RULES 3/18/20 DP/PFC 6-1-1 RULES 3/18/20 DP/C&P 5-3-0-0
3rd Read 3/19/20 29-1-0 3rd
Read 3/23/20 58-2-0
(S.B. 1691 was substituted for H.B. 2908 on
3rd Read)
Signed by the Governor 3/28/20
Chapter 57
Prepared by Senate Research
April 15, 2020
MH/gs/kja