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House Engrossed
EORP; appropriations; repayment |
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State of Arizona House of Representatives Fifty-sixth Legislature First Regular Session 2023
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HOUSE BILL 2430 |
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An Act
amending sections 12-119.01, 12-120.31, 12-284.03, 22-281 and 38-810, Arizona Revised Statutes; amending title 38, chapter 5, article 3, Arizona Revised Statutes, by adding section 38-824; repealing section 38-824, Arizona Revised Statutes; amending section 41-178, Arizona Revised Statutes; appropriating monies; relating to public retirement systems.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 12-119.01, Arizona Revised Statutes, is amended to read:
12-119.01. Supreme court fees; distribution
A. Except as otherwise provided by law, fees for the supreme court shall be established and classified as follows:
Class Description Fee
A Initial case filing fee
Petitions for review and
cross petitions for
review $ 140.00
Direct appeals and cross
appeal appellant 140.00
Special actions petitioner 140.00
B Subsequent case filing fee
Intervenors direct appeals
and special action $ 70.00
Direct appeals appellee 70.00
Special actions respondent 70.00
Response to petition
for review 70.00
E Minimum clerk fee
Certifications alone $ 17.00
Certificate of good standing
Certificates 17.00
F Per page fee
Copies — each page $ .50
G Special fees
New and duplicate certificates $ 35.00
B. The clerk of the supreme court shall deposit, pursuant to sections 35-146 and 35-147, all of the monies collected pursuant to subsection A of this section as follows:
1. 27.78 per cent percent in the judicial collection enhancement fund established by section 12-113.
2. 26.00 per cent percent with the state treasurer for transmission to the elected officials' retirement plan fund established by section 38-802. The monies shall be transmitted by the state treasurer to the fund public safety personnel retirement system's board's office for distribution pursuant to section 38-810.
3. 46.22 per cent percent in the state general fund.
C. The supreme court may increase the class A and B fees prescribed in subsection A of this section.
Sec. 2. Section 12-120.31, Arizona Revised Statutes, is amended to read:
12-120.31. Fees and costs; distribution
A. Fees and costs in the court of appeals shall be the same as supreme court fees and costs pursuant to section 12-119.01.
B. Fees charged by the court of appeals for electronic filing of documents and electronic access shall be the same amount as fees charged by the supreme court and are subject to the provisions of section 12-119.02.
C. The court of appeals shall retain 8.36 per cent percent of all of the monies it collects monthly pursuant to subsection A of this section. The retained monies shall be used to improve, maintain and enhance the ability to collect and manage monies assessed or received by the court, to improve court automation and to improve case processing or the administration of justice. The clerk of the court of appeals shall submit a plan to the supreme court that the supreme court shall approve before the court spends the retained monies.
D. Excluding the monies that are retained pursuant to subsection C of this section, the clerk of the court of appeals shall deposit, pursuant to sections 35-146 and 35-147, all monies collected pursuant to subsection A of this section as follows:
1. 19.42 per cent percent in the judicial collection enhancement fund established by section 12-113.
2. 26.00 per cent percent with the state treasurer for transmission to the elected officials' retirement plan fund established by section 38-802. The monies shall be transmitted by the state treasurer to the fund public safety personnel retirement system's board's office for distribution pursuant to section 38-810.
3. 46.22 per cent percent in the state general fund.
Sec. 3. Section 12-284.03, Arizona Revised Statutes, is amended to read:
12-284.03. Distribution of fees
A. Excluding the monies that are kept by the court pursuant to subsection B of this section, the county treasurer shall transmit, distribute or deposit all monies received from the clerk of the superior court pursuant to section 12-284, subsection K as follows:
1. 1.20 percent to the state treasurer for deposit in the resource center fund established by and for the purposes of section 41-2402, subsection G.
2. 8.18 percent to the state treasurer for deposit in the domestic violence services fund established by section 36-3002.
3. 1.78 percent to the state treasurer for deposit in the child abuse prevention fund established by section 8-550.01.
4. In the county law library fund established by section 12-305, either:
(a) 7.02 percent if the county treasurer is serving in a county with a population of more than five hundred thousand persons.
(b) 14.09 percent if the county treasurer is serving in a county with a population of five hundred thousand persons or less.
5. 0.32 percent to the state treasurer for deposit in the alternative dispute resolution fund established by section 12-135.
6. To the elected officials' retirement plan fund established by section 38-802, either of the following percentages, which shall be distributed to the fund public safety personnel retirement system's board's office for distribution pursuant to section 38-810:
(a) 21.91 percent if the county treasurer is serving in a county with a population of more than five hundred thousand persons.
(b) 14.09 percent if the county treasurer is serving in a county with a population of five hundred thousand persons or less.
7. 17.62 percent to the state treasurer for deposit in the judicial collection enhancement fund established by section 12-113.
8. 0.24 percent to the state treasurer for deposit in the confidential intermediary and fiduciary fund established by section 8-135.
9. In the county general fund, the following percentages:
(a) 28.81 percent if the county treasurer is serving in a county with a population of more than five hundred thousand persons.
(b) 29.56 percent if the county treasurer is serving in a county with a population of five hundred thousand persons or less.
10. 6.00 percent to the elected officials' retirement plan, fund established by section 38-802 for the purpose of funding a portion of the employers' contributions required public safety personnel retirement system's board's office for distribution pursuant to section 38-810.
B. 6.92 percent of the monies transmitted, distributed or deposited pursuant to subsection A of this section shall be kept and used by the court collecting the fees in the same manner as the seven dollars $7 of the time payment fee prescribed by section 12-116, subsection B.
Sec. 4. Section 22-281, Arizona Revised Statutes, is amended to read:
22-281. Fees and deposits
A. Justices of the peace shall receive fees established and classified as follows in civil actions:
Class Description Fee
A Initial case filing fee
Civil filing fees $ 73.00
B Subsequent case filing fee
Civil filing fees — defendant $ 40.00
C Initial case filing fee
Forcible entry and detainer filings $ 35.00
Small claims filing 25.00
D Subsequent case filing fee
Small claims answer $ 15.00
E Minimum clerk fee
Document and transcript transfer on appeal $ 28.00
Certification of any documents 28.00
Issuance of writs 28.00
Filing any paper or performing any act
for which a fee is not specifically
prescribed 28.00
Subpoena (civil) 28.00
Research in locating a document 28.00
Seal a court file 28.00
Reopen a sealed court file 28.00
Record duplication 28.00
F Per page fee
Copies of any documents per page $ 0.50
G Special fees
Small claims service by mail $ 8.00
B. This section does not deprive the parties to the action of the privilege of depositing amounts with the justice, in addition to those set forth in this section, for use in connection with the payment of constable's and sheriff's fees for service of process, levying of writs and other services for which fees are otherwise provided by law.
C. Excluding the monies that are kept by the court pursuant to subsection D of this section, justices of the peace shall transmit monthly to the county treasurer all monies collected pursuant to subsection A of this section. The county treasurer shall distribute or deposit all of the monies received pursuant to this subsection as follows:
1. To the state treasurer for deposit in the judicial collection enhancement fund established by section 12-113, in the following percentages:
(a) 14.80 percent if the county treasurer is serving in a county with a population of more than five hundred thousand persons.
(b) 16.23 percent if the county treasurer is serving in a county with a population of five hundred thousand persons or less.
2. To the state treasurer for deposit in the alternative dispute resolution fund established by section 12-135, in the following percentages:
(a) 1.69 percent if the county treasurer is serving in a county with a population of more than five hundred thousand persons.
(b) 1.89 percent if the county treasurer is serving in a county with a population of five hundred thousand persons or less.
3. To the elected officials' retirement plan fund established by section 38-802, either of the following percentages, which shall be distributed to the fund public safety personnel retirement system's board's office for distribution pursuant to section 38-810:
(a) 21.91 percent if the county treasurer is serving in a county with a population of more than five hundred thousand persons.
(b) 14.09 percent if the county treasurer is serving in a county with a population of five hundred thousand persons or less.
4. To the county general fund, in the following percentages:
(a) 49.95 percent if the county treasurer is serving in a county with a population of more than five hundred thousand persons.
(b) 55.51 percent if the county treasurer is serving in a county with a population of five hundred thousand persons or less.
5. 6.00 percent to the elected officials' retirement plan, fund established by section 38-802 for the purpose of funding a portion of the employers' contributions required public safety personnel retirement system's board's office for distribution pursuant to section 38-810.
D. In counties with a population of more than five hundred thousand persons, 5.65 percent of the monies transmitted pursuant to subsection C of this section shall be kept and used by the court collecting the fees in the same manner as the $7 of the time payment fee prescribed by section 12-116, subsection B.
E. In counties with a population of five hundred thousand persons or less, 6.28 percent of the monies transmitted pursuant to subsection C of this section shall be kept and used by the court collecting the fees in the same manner as the $7 of the time payment fee prescribed by section 12-116, subsection B.
F. The supreme court may increase the fees prescribed in subsection A of this section in an amount not to exceed the percent of change in the average consumer price index as published by the United States department of labor, bureau of labor statistics between that figure for the latest calendar year and the calendar year in which the last fee increase occurred.
Sec. 5. Section 38-810, Arizona Revised Statutes, is amended to read:
38-810. Contributions; appropriations
A. Each member shall contribute to the fund an amount equal to the amount prescribed in subsection G of this section. Contributions of members shall be made by payroll deductions. Every member is deemed to consent to these deductions. Payment of a member's compensation, less these payroll deductions, constitutes a full and complete discharge and satisfaction of all claims and demands by the member relating to remuneration for the member's services rendered during the period covered by the payment, except with respect to the benefits provided under the plan. A member may not, under any circumstance, borrow from, take a loan against or remove contributions from the member's account before the termination of membership in the plan or the receipt of a pension.
B. The board's office shall be credited monthly with monies collected pursuant to section 12-119.01, subsection B, paragraph 2, section 12-120.31, subsection D, paragraph 2, section 12-284.03, subsection A, paragraph 6, section 22-281, subsection C, paragraph 3 and section 41-178. Through June 30, 2023, the monies credited to the fund pursuant to this subsection shall be deposited in the fund on a monthly basis, and there shall be a complete accounting of the determination of these monies deposited in the fund. Beginning July 1, 2023, the monies collected pursuant to this subsection shall be distributed by the board pursuant to subsection J of this section.
C. Beginning on July 1, 2018, as determined by actuarial valuations performed by the plan's actuary each employer shall make contributions on a level percent of compensation basis for all employees of the employer who are either members under this article, article 3.1 of this chapter or article 2 of this chapter pursuant to section 38-727, subsection B sufficient under the actuarial valuation to meet both the normal cost plus the actuarially determined amount required to amortize the unfunded accrued liability over a closed period of at least twenty and not more than thirty years that is established by the board taking into account the recommendation of the plan's actuary and the employer's contribution under the elected officials' defined contribution retirement system established pursuant to article 3.1 of this chapter and the employer's contribution under article 2 of this chapter for members who are eligible pursuant to section 38-727, subsection B. The employer also shall pay the amount required by section 38-797.05 for members under article 2 of this chapter who are eligible pursuant to section 38-727, subsection B and the amount required by article 3.2 of this chapter for members under article 3.1 of this chapter. The monies deposited in the fund pursuant to subsection B of this section shall be used to supplement the contributions required of all employers under the plan. The employer level percent compensation contribution that is paid pursuant to this subsection, less the amount contributed by the employer pursuant to section 38-833 and section 38-737 for members eligible pursuant to section 38-727, subsection B, shall not be used to pay for an increase in benefits that is otherwise payable to members but shall be used to meet the normal cost plus an amount to amortize the unfunded accrued liability.
D. In any fiscal year, an employer's contribution to the plan in combination with member contributions may not be less than the actuarially determined normal cost for that fiscal year. After the close of any fiscal year, if the plan's actuary determines that the actuarial valuation of the fund contains excess valuation assets and is more than one hundred percent funded, the board shall account for fifty percent of the excess valuation assets in a stabilization reserve account. After the close of any fiscal year, if the plan's actuary determines that the actuarial valuation of the fund has a valuation asset deficiency and an unfunded actuarial accrued liability, the board shall use any valuation assets in the stabilization reserve account, to the extent available, to limit the decline in the fund's funding ratio to not more than two percent.
E. The department of administration and the treasurer of each county and participating city and town shall transfer to the board the contributions provided for in subsections A and C of this section within ten working days after each payroll date. The state, county treasurers and clerks of the superior court shall transfer the monies credited under subsection B of this section to the board on or before the fifteenth day of each calendar month that follows the month in which the court fees were collected. Contributions and monies credited under subsection B of this section and transferred after these dates shall include a penalty equal to ten percent a year, compounded annually, for each day that the contributions or monies credited under subsection B of this section are late. Delinquent payments due under this subsection, together with interest charges as provided in this subsection and court costs, may be recovered by action in a court of competent jurisdiction against the person or persons responsible for the payments or, at the request of the board, may be deducted from any other monies, including excise revenue taxes, payable to a political subdivision by any department or agency of this state. Through June 30, 2023, if requested by the board, the state, county treasurers or clerks of the superior court shall transfer the monies credited under subsection B of this section, in an amount determined by the board, directly to the qualified governmental excess benefit arrangement established pursuant to section 38-803.01.
F. The employer shall pay the member contributions required of members on account of compensation earned after August 7, 1985. The paid contributions shall be treated as employer contributions for the purpose of determining tax treatment under the United States internal revenue code. The effective date of the employer payment shall not be before the date the retirement plan has received notification from the United States internal revenue service that pursuant to section 414(h) of the United States internal revenue code the member contributions paid will not be included in gross income for income tax purposes until the paid contributions are distributed by refund or pension payments. The employer shall pay the member contributions from monies established and available in the retirement deduction account, which monies would otherwise have been designated as member contributions and paid to the retirement plan. Member contributions paid pursuant to this subsection shall be treated for all other purposes, in the same manner and to the same extent, as member contributions made before August 7, 1985.
G. An elected official who became a member of the plan before July 20, 2011 shall contribute seven percent of the member's gross salary pursuant to subsection A of this section. The amount contributed pursuant to subsection A of this section by an elected official who became a member of the plan on or after July 20, 2011 is:
1. For fiscal year 2011-2012, ten percent of the member's gross salary.
2. For fiscal year 2012-2013, eleven and one-half percent of the member's gross salary.
3. For fiscal year 2013-2014 and each fiscal year thereafter, thirteen percent of the member's gross salary.
H. For fiscal year 2011-2012 and each fiscal year thereafter, the amount of the member's contribution that exceeds seven percent of the member's compensation shall not be used to reduce the employer's contributions that are calculated pursuant to subsection C of this section.
I. In fiscal years 2013-2014 through 2042-2043 2022-2023, the sum of $5,000,000 is appropriated in each fiscal year from the state general fund to the elected officials' retirement plan fund to supplement the normal cost plus an amount to amortize the unfunded accrued liability pursuant to subsection C of this section. Monies appropriated pursuant to this subsection shall not be used to pay for an increase in benefits that is otherwise payable to members and shall only be used as specified in this subsection. Monies appropriated pursuant to this subsection are exempt from the provisions of section 35-190 relating to lapsing of appropriations.
J. For fiscal year 2023-2024 and each fiscal year thereafter, the monies collected pursuant to subsection B of this section shall be distributed as follows:
1. As determined by the board, an amount directly to the qualified governmental excess benefit arrangement established pursuant to section 38-803.01.
2. After transferring monies pursuant to paragraph 1 of this subsection, on or before June 30, the board shall transfer any remaining monies collected during a fiscal year to the state general fund.
Sec. 6. Title 38, chapter 5, article 3, Arizona Revised Statutes, is amended by adding section 38-824, to read:
38-824. Repayment; local governments; pension liability; payment schedule; treasurer notification
A. From and after June 30, 2023 through June 30, 2033, the following amounts shall be paid annually by the following cities, towns and counties to repay this state for the amounts paid in fiscal year 2022-2023 on the local governments' behalf to the elected officials' retirement plan for unfunded accrued liability:
1. Apache county $ 138,000
2. Cochise county $ 464,500
3. Coconino county $ 456,000
4. Gila county $ 134,900
5. Graham county $ 113,100
6. Greenlee county $ 49,300
7. La Paz county $ 61,500
8. Maricopa county $11,995,200
9. Mohave county $ 1,187,200
10. Navajo county $ 616,600
11. Pima county $ 4,052,900
12. Pinal county $ 1,828,200
13. Santa cruz county $ 122,200
14. Yavapai county $ 727,200
15. Yuma county $ 786,200
16. City of tucson $ 151,700
17. City of Safford $ 41,800
18. Town of marana $ 95,100
19. Town of Gilbert $ 133,300
20. Town of Sahuarita $ 38,200
21. City of phoenix $ 455,100
22. City of Surprise $ 159,800
23. City of San Luis $ 74,800
24. City of Scottsdale $ 137,100
25. City of Flagstaff $ 139,700
26. City of South Tucson $ 14,800
27. City of Tempe $ 196,600
28. City of Mesa $ 248,700
29. City of Glendale $ 188,600
30. City of Avondale $ 59,700
31. City of Apache Junction $ 59,500
32. City of Peoria $ 131,400
33. City of Tolleson $ 86,800
34. City of Globe $ 26,300
35. City of Chandler $ 196,900
36. City of Yuma $ 220,900
37. Town of Thatcher $ 26,000
B. not later than January 15 of each year, the state treasurer shall annually bill Each city, town and county specified in subsection A of this section the amount due. The city, town or county may pay an additional amount in any year, and the additional amount paid will be credited against the last scheduled remaining payment due for that city, town or county. The state treasurer shall include in each billing statement the city's, town's or county's remaining payment schedule.
C. If a city, town or county specified in subsection A of this section fails to pay the annual repayment amount in full on or before March 15, the state treasurer shall withhold the amount owed from the distribution of monies to the affected city, town or county pursuant to section 42-5029 and continue to withhold monies until the entire amount of the annual repayment amount has been satisfied. All monies paid to the state treasurer or withheld by the state treasurer shall be deposited, pursuant to sections 35-146 and 35-147, in the state general fund.
Sec. 7. Delayed repeal
Section 38-824, Arizona Revised Statutes, as added by this act, is repealed from and after June 30, 2034.
Sec. 8. Section 41-178, Arizona Revised Statutes, is amended to read:
41-178. Distribution of notary bond fees
The state treasurer shall transmit, distribute or deposit all monies received pursuant to section 41-126, subsection A, paragraphs 11 and 12 as follows:
1. 1.31 percent for deposit in the resource center fund established by and for the purposes of section 41-2402, subsection G.
2. 8.87 percent for deposit in the domestic violence services fund established by section 36-3002.
3. 1.93 percent for deposit in the child abuse prevention fund established by section 8-550.01.
4. 7.62 percent for proportional deposit in each county's law library fund established by section 12-305, based on the number of notaries commissioned per county.
5. 0.35 percent for deposit in the alternative dispute resolution fund established by section 12-135.
6. 23.79 percent for deposit in the elected officials' retirement plan fund established by section 38-802, which shall be distributed to the fund transmission to the public safety personnel retirement system's board's office for distribution pursuant to section 38-810.
7. 17.07 percent for deposit in the judicial collection enhancement fund established by section 12-113.
8. 0.26 percent for deposit in the confidential intermediary and fiduciary fund established by section 8-135.
9. 31.29 percent for deposit in the notary bond fund established by section 41-314.
10. 7.51 percent shall be distributed to the county where the notary is commissioned in the same manner as the seven dollars $7 of the time payment fee prescribed by section 12-116, subsection B.
Sec. 9. Appropriation; elected officials' retirement plan; pension liability
A. In addition to any other appropriations made in fiscal year 2022-2023, the sum of $609,054,500 is appropriated from the state general fund in fiscal year 2022-2023 to the elected officials' retirement plan fund established by section 38-802, Arizona Revised Statutes, to pay the unfunded accrued liability for the elected officials' retirement plan.
B. The board of trustees of the public safety personnel retirement system shall account for the appropriation made in subsection A of this section in the June 30, 2023 actuarial valuation of the elected officials' retirement plan. The board shall account for the appropriation when calculating the employee contribution rates and the employer contribution rates pursuant to section 38-810, Arizona Revised Statutes, as amended by this act, during fiscal year 2023-2024.
Sec. 10. Appropriation reductions; department of administration; fiscal year 2023-2024
A. The sum of ($3,000,000) is reduced from appropriations made from the state general fund in fiscal year 2023-2024 to the department of administration. This reduction shall be applied to monies the department of administration distributes to counties for required employer contributions to the elected officials' retirement plan.
B. The sum of ($9,488,300) is reduced from appropriations made from the state general fund in fiscal year 2023-2024 to the judiciary—superior court judges' compensation line item.
C. The sum of ($3,115,900) is reduced from appropriations made from the state general fund in fiscal year 2023-2024 to the judiciary—court of appeals as follows:
1. ($2,114,400) division one line item.
2. ($1,001,500) division two line item.
D. The following sums are reduced from appropriations made from the state general fund in fiscal year 2023-2024 to the following agencies' operating lump sum appropriation line item:
1. Attorney general ($ 52,700)
2. Corporation commission ($232,800)
3. Superintendent of public instruction ($ 49,800)
4. Office of the governor ($ 55,600)
5. Judiciary — supreme court ($844,600)
6. Legislature — senate ($421,700)
7. Legislature — house of representatives ($843,400)
8. State mine inspector ($ 29,300)
9. Department of state — secretary of state ($ 41,000)
10. State treasurer ($ 41,000)
Sec. 11. Emergency
This act is an emergency measure that is necessary to preserve the public peace, health or safety and is operative immediately as provided by law.