ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

First Regular Session

Senate: APPROP 6-4-1-0| 3rd Read 16-14-0-0

House: APPROP DP 7-6-0-0| 3rd Read 31-29-0-0

SB 1827: revenue; budget reconciliation; 2021-2022.

(Substituted for HB 2899)

Sponsor:  Representative Toma, LD 22

Transmitted to Governor

Overview

Contains budget reconciliation provisions relating to Revenue needed for implementing the FY 2021 - 2022 budget.

History

The Arizona Legislature adopts a budget for each fiscal year (FY) that contains general appropriations.  Article IV, Section 20, Part 2, Constitution of Arizona, requires the General Appropriations Act (feed bill) to contain only appropriations for the different state departments, state institutions, public schools and interest on public debt.  Statutory changes necessary to reconcile the appropriations made in the feed bill and other changes are drafted into separate bills known as Budget Reconciliation Bills (BRBs).  These BRBs are prepared according to subject area.

Provisions

1.   Establishes the municipal firefighter cancer reimbursement fund (Fund) consisting of fees assessed and collected from cities and towns by the Industrial Commission of Arizona (Commission).  (Sec. 1)

2.   Establishes, beginning July 1, 2021, an assessment not to exceed $15,000,000 in each fiscal year consisting of fees assessed and collected from cities and towns based on population determined by the United States Census Bureau as of July 1.  (Sec. 1)

3.   Requires the Commission to assess the fees by July 31 of each year.  (Sec. 1)

4.   Requires the Commission to notify the State Treasurer if a city or town does not pay the assessment in full by September 30 and for the Treasurer to withhold the revenue sharing distributions in the amount of the delinquency.  (Sec. 1)

5.   Defines terms for municipal firefighter cancer reimbursement purposes.  (Sec. 1)

6.   Allows cities and towns to meet their obligation from any source of revenue designated appropriate by the city or town.  (Sec. 1)

7.   Contains an intent clause for the Fund.  (Sec. 14)

8.   Repeals, effective July 1, 2021, the partial assessment of costs to local governments, councils and authorities used to recover a portion of the Department of Revenue's (DOR) administrative, program and other operating costs incurred in providing administrative and collection services to local governments.  (Sec. 3, 15)

9.   Creates an aggregate individual income tax rate cap of 4.5% for taxable years beginning January 1, 2021.  (Sec. 4)

10.  Exempts, for purposes of implementing the 4.5% rate cap, DOR from the rulemaking requirements for one year after the effective date of this act.  (Sec. 4, 13)

11.  Extends the date that the Veteran’s income tax settlement fund monies revert to the state General Fund from June 30, 2021 to June 30, 2023.  (Sec. 5)

12.  Extends the Department of Veterans Services acceptance of Veteran's income tax settlement claims from December 31, 2019 to December 31, 2022.  (Sec. 6)

13.  Extends the Veteran's income tax settlement annual reporting by DOR from October 1, 2021 to October 1, 2023.  (Sec. 7)

14.  Extends the repeal of provisions of law associated with the Veteran's income tax settlement from December 31, 2021 to December 31, 2023.  (Sec. 8)

15.  Continues, as session law, the Department of Gaming's regulatory wagering assessment at the current rate of 0.5% of the amounts wagered.  (Sec. 9)

16.  Allows, as session law, the Director of the Arizona Department of Agriculture (ADA), with the assistance of the ADA advisory council, to continue, increase or decrease existing fees in FY 2022 for services provided in FY 2022.  (Sec. 10)

17.  Continues, as session law, to permit a county with a population of less than 250,000, based on the 2010 United States decennial census, to use any source of county revenue up to $1.25 million to meet its FY 2022 obligations.  (Sec. 11)

18.  Requires, by October 1, 2021, all counties with a population of less than 250,000 to report to JLBC the specific source and amount of revenues, used for purposes other than the purpose of the revenue source, the county intends to use to meet the fiscal obligation in FY 2022.  (Sec. 11)

19.  Requires, in FY 2022, the Department of Administration to assess and collect $1,110,992 from the City of Flagstaff to reimburse the state for costs attributed to the establishment of a minimum wage that exceeds the state minimum wage.  (Sec. 12)

20.  Contains a retroactivity clause of January 1, 2020 for specific provisions associated with the Veteran's income tax settlement fund.  (Sec. 14)

21.  Contains technical changes.☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note

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25.                    HB 2899

26.  Initials VP  Page 0 Transmitted

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