Assigned to APPROP                                                                                                                        AS VETOED

ARIZONA STATE SENATE

Fifty-Sixth Legislature, First Regular Session

VETOED

FACT SHEET FOR S.B. 1531/h.b. 2578

local government; 2023-2024

Purpose

Makes session law changes relating to local government necessary to implement the FY 2024 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. 1531 contains the budget reconciliation provisions for changes relating to local government.

Provisions

1. Continues to allow a county with a population of fewer than 250,000 persons to meet any fiscal obligation for FY 2024 from any source of county revenue designated by the county, including monies of any countywide special taxing jurisdiction where the board of supervisors serves as the board of directors.

2. Continues to cap, at $1,250,000, the amount of money a county may use for purposes outside the county's revenue source.

3. Continues to require a county with a population of fewer than 250,000 persons by October 1, 2023, to report to the Director of the Joint Legislative Budget Committee:

a) whether the county used a revenue source for purposes other than the revenue sources' intended purposes to meet a county fiscal obligation; and

b) the specific source and amount of revenues that the county intends to use in FY 2024.

4. Becomes effective on the general effective date.

Governor's Veto Message

The Governor indicates in her veto message that S.B. 1531, and the FY 2024 state budget as a whole, does not address her priorities to work together on a budget that addresses the state's housing crisis, lowers costs, prepares the workforce and invests in public education.

Senate Action House Action

APPROP         1/31/23      DP      6-4-0                    APPROP         2/1/23        DP      9-6-0-0

3^rd Read           2/13/23                 17-13-0                3^rd Read           2/13/23                31-27-2

3^rd Read*        2/13/23                 16-14-0                (S.B. 1531 was substituted for H.B. 2578 on 3^rd

*on reconsideration                                                 Read)

Vetoed by the Governor 2/16/23

Prepared by Senate Research

February 17, 2023

AN/SB/slp