Assigned to APPROP FOR
COMMITTEE
ARIZONA STATE SENATE
Fifty-Fifth Legislature, First Regular Session
revenue; budget reconciliation; 2021-2022
Purpose
Makes statutory and session law changes relating to general revenues necessary to implement the FY 2022 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. 1827 contains the budget reconciliation provisions for changes relating to general revenues.
Provisions
Arizona Department of Revenue (ADOR)
(Retroactive to July 1, 2021)
1. Repeals the requirement that ADOR assess and collect fees from cities, towns, counties, councils of governments and regional transportation authorities to recover a portion of administrative, program or other operating costs incurred in providing administrative and collection services to local governments.
2. Repeals the requirement that ADOR assess a fee to each:
a) city, county and town that receives state shared revenues from the transaction privilege tax distribution base or the Urban Revenue Sharing Fund;
b) council of governments that receives county transportation excise tax revenues; and
c) regional transportation authority located in a county with a population of 400,000 persons or more that receives county transportation excise tax revenues.
3. Repeals the permissive authority of a local government to meet their cost sharing obligation from any source of revenue designated by the appropriate county, city or town.
Arizona Department of Veterans Services (ADVS)
(Retroactive to January 1, 2020)
4. Extends the deadline for ADVS to accept Veterans' Income Tax Settlement Fund (VITS Fund) claims from December 31, 2019, to December 31, 2022.
5. Extends the date that the remaining monies from the VITS Fund revert to the state General Fund (state GF) from June 30, 2021, to June 30, 2023.
6. Extends the last date in which ADOR must annually report on the VITS Fund from October 1, 2021, to October 1, 2023.
7. Delays the repeal of the VITS program from January 1, 2022, to January 1, 2024.
City of Flagstaff
8. Requires, retroactive to July 1, 2021, the Arizona Department of Administration (ADOA) to assess and collect $1,110,992 from the City of Flagstaff in FY 2022 to reimburse the state for costs attributable to the establishment of a minimum wage that exceeds the statutory minimum wage.
Arizona Department of Gaming (ADG)
9. Continues to require the ADG, in FY 2022, 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 Agriculture (AZDA)
10. Continues to allow AZDA to continue, increase or lower existing fees from FY 2020 and FY 2021 in FY 2022 for services provided in FY 2022.
11. Limits additional revenues generated by the continuation, increase or reduction of existing AZDA fees to:
a) $218,000 for the state GF;
b) $113,000 for the Pesticide Trust Fund; and
c) $26,000 for the Dangerous Plants, Pests and Diseases Trust Fund.
12. Exempts AZDA from rulemaking requirements for the purpose of establishing fees until July 1, 2022.
Counties
13. 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 2022.
14. Continues to require a county using the flexible authority to report to the Director of the Joint Legislative Budget Committee by October 1, 2021 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 2022.
Miscellaneous
15. Makes technical and conforming changes.
16. Becomes effective on the general effective date, with retroactive provisions as noted.
Prepared by Senate Research
May 24, 2021
MG/ML/gs