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ARIZONA STATE SENATE

Fifty-Seventh Legislature, First Regular Session

 

FACT SHEET FOR S.B. 1374

 

special census; state population; appropriation

Purpose

Allows the state to conduct, during the fifth year after the U.S. Decennial Census, a special census of the state's population and requires the statewide special census to be used when apportioning certain state shared revenues. Appropriates $10,000,000 from the state General Fund (state GF) in FY 2026 to an unspecified department to conduct the statewide special census.

Background

The U.S. Decennial Census counts each resident of the country every 10 years ending in zero. The U.S. Constitution requires the enumeration to determine how to apportion the U.S. House of Representatives among the states. The U.S. Census Bureau is charged with conducting the U.S. Decennial Census and must notify the U.S. Congress of the planned subjects for the census no later than three years before the census and of the specific wording of questions to be asked no later than two years before the census (U.S. Census Bureau).

            The population shown in the U.S. Decennial Census must be used as the basis for apportioning Highway User Revenue Fund (HURF) monies, with outlined exceptions. During the fifth year after the U.S. Decennial Census, a county, city or town may request the U.S. Census Bureau to take a special census of the population of the county, city or town. The results must be certified to the State Treasurer and be used on July 1 in the year after the special census as the basis for apportioning HURF monies, except that a city or town may elect to use either the results of the special census or the most recent population estimates from the U.S. Census Bureau. A city or town may use the results of the special census for only one year and, beginning July 1 in the second year after the special census, the city or town must use the most recent population estimates from the U.S. Census Bureau (A.R.S. § 28-6532).

During the fifth year following the U.S. Decennial Census, a county, city or town may cause to be taken by the U.S. Census Bureau a special census of the population of the county, city or town. The results of the special census may be certified by the Director of the Arizona Department of Revenue. Beginning July 1 in the sixth year following the U.S. Decennial Census, the special census with any revisions certified by the U.S. Census Bureau must be used as the basis of apportioning the transaction privilege tax (TPT) distribution base until the next U.S. Decennial Census, except that a city or town may elect to use either the results of the special census or the most recent population estimates from the U.S. Census Bureau (A.R.S. § 42-5033).

In lieu of conducting a special census, a county, before May 1 of the sixth year following a U.S. Decennial Census, may choose to use one of the following three population estimates for distributing HURF monies and the TPT distribution base: 1) the county's population estimate as of the fifth year following the last U.S. Decennial Census as approved by the Office of Employment and Population Statistics; 2) a mid-decade resident survey certified by the U.S. Census Bureau; or 3) the most recent U.S. Decennial Census. The most recent U.S. Census Bureau population estimates must be used annually for distribution of HURF monies and the TPT distribution base to cities and towns, in lieu of the city or town conducting a special census (A.R.S. § 42-5033.01).

S.B. 1374 appropriates $10,000,000 from the state GF in FY 2026 to an unspecified department.

Provisions

1.   Allows the state, during the fifth year after the U.S. Decennial Census, to conduct a special census of the population of the state.

2.   Requires the results of the state special census to be certified to the State Treasurer, rather than allowing the Director of ADOR to certify the results.

3.   Requires the certified state special census, rather than the census certified by the U.S. Census Bureau, to be used as the basis of apportioning the TPT distribution base and HURF monies, with outlined exceptions.

4.   Appropriates $10,000,000 from the state GF in FY 2026 to an unspecified department to conduct a statewide special census.

5.   Exempts the appropriation from lapsing.

6.   Becomes effective on the general effective date.

Prepared by Senate Research

February 7, 2025

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