SB1051 - 561R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 11-806, Arizona Revised Statutes, is amended to read:

START_STATUTE11-806. Rural planning areas; rural planning zones; formation

A. In counties with a population of less than four five hundred thousand persons, the board of supervisors shall receive petitions to form a rural planning area that are signed by persons who own real property in any specific portion of the county outside the corporate boundaries of any cities and towns. Owners of a majority of the acres of real property in the proposed planning area must sign the petition. Participation in the rural planning area is voluntary, and any person may withdraw real property owned by the person from the planning area. The board of supervisors shall encourage voluntary participation in the planning area and shall aid the planning areas in providing a sound factual and policy basis for planning. The recommendations of rural planning areas shall emphasize voluntary, nonregulatory incentives for compliance and accommodation of continuing traditional rural and agricultural enterprises. Rural planning areas shall transmit their recommendations to the board of supervisors for its consideration for inclusion in the county comprehensive plan.

B. In any county with a population of less than four five hundred thousand persons, any cities and towns and the county sharing a multijurisdictional area with a combined population of more than fifty thousand but less than one hundred thousand persons, according to the most recent department of economic security office of economic opportunity estimates, may voluntarily form rural planning zones to develop coordinated and comprehensive regional plans. END_STATUTE

Sec. 2. Section 28-6391, Arizona Revised Statutes, is amended to read:

START_STATUTE28-6391. Transportation excise tax distribution in counties with five hundred thousand persons or less; county regional area road fund

A. In a county with a population of four five hundred thousand persons or less, the officer collecting transportation excise tax monies pursuant to section 42-6107 shall immediately transfer the monies to the state treasurer. The state treasurer shall deposit the monies in a fund designated for the county as the county's regional area road fund. The state treasurer shall hold monies in the county's regional area road fund as a trustee for the county and the cities and towns in the county.

B. The county and the cities and towns in the county that receive the transportation excise tax monies have the beneficial interests in the fund. END_STATUTE

Sec. 3. Section 36-2944, Arizona Revised Statutes, is amended to read:

START_STATUTE36-2944. Qualified plan health service contracts; proposals; administration; contract terms

A. For each county that has a population of four five hundred thousand persons or less according to the most recent United States decennial census and that was not approved as a program contractor before January 1, 1994 or that officially states that it wishes to end its status as a program contractor, the director at least every five years shall prepare and issue a request for proposal and a proposed contract format to qualified group disability insurers, hospital and medical service corporations, health care services organizations and any other qualified public or private persons to be a program contractor and provide services pursuant to this article on a capitation rate basis to members who are enrolled with the program contractors by the system, who are not persons with developmental disabilities as defined in section 36-551 and who are residents of the county at the time of application for the system.

B. The director may adopt rules regarding the request for proposal process which that provide:

1. For the award of contracts by categories of members or services in order to secure the most financially advantageous proposals for the system.

2. That each qualified proposal shall be entered with separate categories for the distinct groups of members or services to be covered by the proposed contracts, as set forth in the request for proposal.

3. For the procurement of reinsurance for expenses incurred by any program contractor, any member or the system in providing services in excess of amounts specified by the director in any contract year.

4. For second round competitive proposals to request voluntary price reduction of proposals from only those proposals that have been tentatively selected for award, before the final award or rejection of proposals.

C. Contracts shall be awarded as otherwise provided by law, except that in no event may a contract be awarded to any program contractor which that will cause the system to lose any federal monies to which it is otherwise entitled.

D. After contracts are awarded pursuant to this section, the director may negotiate with any successful proposal respondent for the expansion or contraction of services or service areas if there are unnecessary gaps or duplications in services or service areas.

E. Payments to program contractors pursuant to this section shall be made monthly or quarterly and may be subject to contract provisions requiring the retention of a specified percentage of the payment by the director, a reserve fund or other contract provisions by which adjustments to the payments are made based on utilization efficiency, including incentives for maintaining quality care and minimizing unnecessary inpatient services. Reserve funds withheld from contracts shall be distributed to program contractors who meet performance standards established by the director. Any reserve fund established pursuant to this subsection shall be established as a separate account within the Arizona long-term care system fund.

F. Payments made pursuant to this section shall begin after a member is enrolled in the system.

G. Each program contractor pursuant to this section shall submit an annual audited financial and programmatic report for the preceding fiscal year as required by the administration. The report shall include beginning and ending fund balances, revenues and expenditures, including specific identification of administrative costs. The report shall include the number of members served by the program contractor and the cost incurred for various types of services provided to members in a format prescribed by the director.

H. The director shall require contract terms necessary to ensure adequate performance by the program contractor of the provisions of each contract executed pursuant to this section. Contract provisions required by the director shall include the maintenance of deposits, performance bonds, financial reserves or other financial security. END_STATUTE

Sec. 4. Section 49-474.07, Arizona Revised Statutes, is amended to read:

START_STATUTE49-474.07. Voluntary diesel equipment retrofit program; criteria; inventory; permits

A. A county with a population of more than four five hundred thousand persons shall operate and administer a voluntary diesel emissions retrofit program in the county for the purpose of reducing particulate emissions from diesel equipment. The program shall provide for real and quantifiable emissions reductions based on actual emissions reductions by an amount greater than that already required by applicable law, rule, permit or order and computed based on the percentage emissions reductions from the testing of the diesel retrofit equipment prescribed in subsection C of this chapter as applied to the rated emissions of the engine and using the standard operating hours of the equipment.

B. A person may participate in the program if both of the following apply:

1. The person is the owner of diesel powered equipment that requires a permit issued pursuant to this article for lawful operation.

2. The person reports to the control officer on the type of equipment that is retrofitted, provides a method for calculating the emissions reductions achieved that is approved by the control officer and provides evidence that the retrofitted equipment is actually used in a manner that results in lower particulate emissions with no increase in emissions of other pollutants.

C. The voluntary diesel retrofit program shall provide for the following:

1. Each person who participates shall allocate to the air quality emissions reduction inventory for that county one-half of the total particulate emissions reduction achieved through that person's retrofit of diesel equipment operating at the permitted site whether or not that equipment is required to have a permit.

2. Each person who participates shall retain one-half of the total particulate emissions reduction achieved through that person's retrofit of equipment at the site for purposes of receiving a modification to an existing permit or a provision in a new permit that allows for extended hours of operation for the permitted equipment, as compared to the existing permit, or for new permits, as compared to permits for similar equipment.

3. The diesel emissions reduction equipment that is retrofitted shall be registered with the department of environmental quality with notice to the applicable county, shall be tested with an ISO 8178 test by a properly equipped laboratory and shall demonstrate at least a thirty-five per cent percent reduction in particulate pollution with no increase in the generation or emission of other regulated pollutants. This paragraph applies without regard to whether the participant is required to obtain an air quality permit for the equipment.

4. The control officer shall provide a method for determining the participant's eligibility for the program and for the modification of existing permits or for incorporating this program's provisions into the terms of any applicable new permits as well as any reporting requirements to ensure continued use of the emissions reduction measures.

D. This section does not authorize a permit condition or a modification to a permit condition that would violate a requirement of the clean air act, this chapter or a rule adopted under this chapter, including the national ambient air quality standards. This section does not authorize the use of reductions in mobile source emissions for purposes of determining the applicability of new source review requirements. END_STATUTE