HB2009 - 511S

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

Section 1. Section 32-1134, Arizona Revised Statutes, is amended to read:

START_STATUTE32-1134. Powers and duties of registrar

A. The registrar shall:

1. Establish assessments and maintain the fund balance at a level sufficient to pay operating costs and anticipated claims using the cash basis of accounting.

2. Cause an examination of the fund to be made every three years by an independent certified public accountant.

3. File with the department of insurance an annual statement of the condition of the fund.

4. Employ accountants and attorneys from monies in the fund, but not to exceed ten thousand dollars in any fiscal year, that are necessary for the performance of the duties prescribed in this section.

5. Employ or contract with individuals and procure equipment and operational support, to be paid from or purchased with monies in the fund, but not to exceed ten per cent of the fund in any fiscal year fourteen per cent of the total amount deposited in the fund in the prior fiscal year as may be necessary to monitor, process or oppose claims filed by injured persons which may result in collection from the recovery fund.

B. Notwithstanding section 32‑1135, the registrar may expend interest monies from the fund to increase public awareness of the fund. This expenditure shall not exceed fifty thousand dollars in any fiscal year. END_STATUTE

Sec. 2. Section 35-144, Arizona Revised Statutes, is amended to read:

START_STATUTE35-144. Budget stabilization fund; definitions

A. The budget stabilization fund is established consisting of monies transferred from the state general fund pursuant to subsection B of this section. The state treasurer shall administer the fund and invest and divest monies in the fund as provided by sections 35‑313 and 35‑314.02, and monies earned from investment shall be credited to the fund except as provided in subsection J of this section. Except as provided by this section:

1. Monies in the fund are exempt from the provisions of section 35‑190 relating to the reversion of monies to the state general fund.

2. The monies in the fund are separate monies to be used only for the purposes of the fund.

B. In a calendar year in which the annual growth rate exceeds the trend growth rate, the excess growth when multiplied by total general fund revenue of the fiscal year ending in the calendar year determines the amount to be appropriated by the legislature to the budget stabilization fund in the fiscal year in which the calendar year ends.

C. In a calendar year in which the annual growth rate is both less than two per cent and less than the trend growth rate, the difference between the annual growth rate and the trend growth rate when multiplied by the total general fund revenue of the fiscal year ending in the calendar year determines the amount to be transferred by the legislature from the budget stabilization fund to the state general fund at the end of the fiscal year in which the calendar year ends. The transfer calculated pursuant to this subsection shall not exceed the available balance in the fund, nor shall the legislature transfer an amount which exceeds the amount sufficient to balance the general fund budget.

D. The legislature shall pass a bill which contains the emergency clause if the legislature either:

1. Reduces the amount for appropriation to the budget stabilization fund under subsection B of this section.

2. Increases the amount for transfer to the state general fund under subsection C of this section.

E. The annual budget recommendations of the governor and the joint legislative budget committee shall include estimates of appropriations or transfers required under subsection B or C of this section.

F. A final determination of the amount to be appropriated to or transferred from the budget stabilization fund shall be made using personal income and price deflator estimates as reported in the second calendar quarter for the preceding calendar year. The economic estimates commission shall determine the annual growth rate, the trend growth rate and the required appropriation to or transfer from the budget stabilization fund at its first meeting following the second calendar quarter report of the United States department of commerce, but not later than June 1. The commission shall certify and report its findings to the governor, the state treasurer, the president of the senate, the speaker of the house of representatives and the joint legislative budget committee.

G. The appropriation calculated pursuant to subsection B of this section may be included in the general appropriation bill for that fiscal year. Any additional appropriation calculated pursuant to subsection F of this section shall be made by separate act.

H. At the end of a fiscal year, the budget stabilization fund balance shall not exceed 5.634 per cent for fiscal year 1997‑1998, 6.333 per cent for fiscal year 1998‑1999 and seven per cent for fiscal year 1999‑2000 and each subsequent fiscal year of general fund revenue for each fiscal year. Any surplus monies above the allowable percentages shall be transferred by the state treasurer to the state general fund.

I. The state treasurer may temporarily divest monies in the budget stabilization fund to avoid a negative cash balance in operating monies. The amount divested shall not exceed the amount required to meet immediate cash needs. The state treasurer may divest monies in the budget stabilization fund only when the general fund has a negative cash balance.

J. Interest income earned from investment of budget stabilization fund monies shall be distributed equally to the Arizona state parks board established by section 41-511 and the Arizona commission on the arts established by section 41-981 to be used by those agencies to perform their respective duties. This distribution is exempt from the provisions of section 35-190 relating to the lapsing of appropriations.

J. K. In this section:

1. "Adjusted personal income" means personal income minus transfer payments, as reported by the United States department of commerce, bureau of economic analysis, or its successor agency.

2. "Annual growth rate" means the percentage change in real adjusted personal income in the calendar year ending during a fiscal year as compared to real adjusted personal income for the preceding calendar year. The annual growth rate shall be rounded to the nearest one‑hundredth of one per cent.

3. "GDP price deflator" means the gross domestic product price deflator reported by the United States department of commerce, bureau of economic analysis, or its successor agency.

4. "Personal income" means the total personal income of all persons in this state reported by the United States department of commerce, bureau of economic analysis, or its successor agency.

5. "Real adjusted personal income" means an amount which is determined by dividing adjusted personal income by the GDP price deflator and multiplying the result by one hundred.

6. "Transfer payments" means that portion of personal income which represents a government expenditure for which no service is rendered or product is delivered, as determined by the United States department of commerce, bureau of economic analysis, or its successor agency.

7. "Trend growth rate" means the average annual growth rate for the most recent seven calendar years, rounded to the nearest one‑hundredth of one per cent. END_STATUTE

Sec. 3. Section 42-5031.01, Arizona Revised Statutes, is amended to read:

START_STATUTE42-5031.01. Distribution of revenues for Indian tribal postsecondary educational institutions; definition

A. Subject to subsection C of this section, each month the state treasurer shall transmit to the treasurer or other designated depository of each qualifying Indian tribe the amount of transaction privilege tax revenues received pursuant to this article in the preceding month from all sources located on the Indian reservation established for the qualifying Indian tribe as determined pursuant to section 42‑5029, subsection A, paragraph 3.

B. The monies distributed pursuant to this section are for the exclusive purpose of supporting the maintenance, renewal and capital expenses of one or more community colleges college campuses in this state that are owned, operated or chartered by each qualifying Indian tribe on its own Indian reservation. Before receiving any monies under this section, a qualifying Indian tribe shall enter into an initial compact with this state on or before September 1, 2012, signed by the governor, to account for the use of monies distributed pursuant to this section. The compact shall:

1. Be for a term of at least ten years. After a hearing and review of the compact by the joint legislative budget committee held during the last year of the compact's term, a compact may be renewed for an additional term of up to ten years.

2. Require the monies to be used primarily for capital needs including maintenance and renewal of existing facilities at designated community college campuses on the qualifying Indian tribe's own reservation in this state.

3. Provide for audits by the auditor general of the use of the monies. The auditor general shall submit copies of each audit to the joint legislative budget committee.

4. If necessary, provide for reimbursement to the department of revenue of costs associated with implementing this section, not to exceed one hundred fifty thousand dollars, from revenues that would otherwise be paid to the qualifying Indian tribe pursuant to this section.

C. Notwithstanding subsection A of this section, the state treasurer shall not transmit in any fiscal year more than the sum of the following amounts:

1. With respect to a single community college, one million seven hundred fifty thousand dollars or more than one-tenth ten per cent of transaction privilege tax revenues received pursuant to this article from all sources located on the reservation, whichever is less.

2. With respect to an additional technical college located on the same indian reservation, eight hundred seventy-five thousand dollars or more than five per cent of transaction privilege tax revenues received pursuant to this article from all sources located on the reservation, whichever is less.

D. For the purposes of this section, "qualifying Indian tribe" means an Indian tribe that owns, operates and charters any community college or postsecondary educational institution located on its own reservation in this state. END_STATUTE

Sec. 4. Racing and boxing fees; increases; rule making exemption

A. The Arizona department of racing is exempt from the rule making requirements of title 41, chapter 6, Arizona Revised Statutes, for the purpose of increasing fees pursuant to sections 5‑104 and 5‑230, Arizona Revised Statutes, until July 1, 2014.

B. It is the intent of the legislature that the revenue generated by the fees collected pursuant to sections 5‑104 and 5‑230, Arizona Revised Statutes, not exceed $2,062,000 in fiscal year 2013‑2014.

Sec. 5. Fees for providing services; increases; intent; exemption from rule making

A. Notwithstanding any other law, the director of each of the following agencies may increase fees in fiscal year 2013‑2014 for services provided in fiscal year 2013-2014:

1. Office of pest management.

2. Radiation regulatory agency.

B. It is the intent of the legislature that the revenue generated by the fees collected pursuant to subsection A of this section not exceed the amounts listed below:

1. Office of pest management $525,000.

2. Radiation regulatory agency $561,000.

C. Monies received from any fees pursuant to subsection A, paragraph 1 of this section shall be deposited in the pest management fund established by section 32-2305, Arizona Revised Statutes.

D. Monies received from any fees pursuant to subsection A, paragraph 2 of this section shall be deposited in the radiation regulatory fee fund established by section 30‑658, Arizona Revised Statutes.

E. The agencies prescribed in subsection A of this section are exempt from the rule making requirements of title 41, chapter 6, Arizona Revised Statutes, for the purpose of establishing fees pursuant to this section until July 1, 2014.

Sec. 6. Agricultural fees; intent; rule making exemption

A. Notwithstanding any other law, the director of the Arizona department of agriculture, with the assistance of the agriculture advisory council, may continue existing fees from fiscal year 2012‑2013 in fiscal year 2013-2014 for services provided in fiscal years 2013‑2014.

B. It is the intent of the legislature that the additional revenue generated by the fees established as prescribed in subsection A of this section not exceed $218,000 to the state general fund, $113,000 to the pesticide trust fund and $26,000 to the dangerous plants, pests and diseases trust fund in fiscal year 2013‑2014.

C. The Arizona department of agriculture is exempt from the rule making requirements of title 41, chapter 6, Arizona Revised Statutes, for the purpose of establishing fees pursuant to this section until July 1, 2014.

Sec. 7. Department of insurance; fee and assessment adjustment suspension

Notwithstanding section 20-167, subsection F, Arizona Revised Statutes, and section 20-466, subsection J, Arizona Revised Statutes, the director of insurance shall not revise fees or assessments in fiscal year 2013-2014 for the purpose of meeting the requirement to recover at least ninety-five per cent but not more than one hundred ten per cent of the department of insurance's appropriated budget.

Sec. 8. County fiscal obligations; report

A. Notwithstanding any other law, for fiscal year 2013‑2014, a county with a population of less than 200,000 persons according to the 2010 United States decennial census may meet any county fiscal obligation from any source of county revenue designated by the county, including funds of any countywide special taxing jurisdiction in which the board of supervisors serves as the board of directors.

B. On or before October 1, 2013, all counties with a population of less than 200,000 persons according to the 2010 United States decennial census shall report to the director of the joint legislative budget committee whether the county used a revenue source to meet a county fiscal obligation pursuant to subsection A of this section and, if so, the specific source and amount of revenues that the county intends to use in fiscal year 2013‑2014.

Sec. 9. Automobile theft authority; fees; adjustment; fiscal year 2013‑2014; rule making exemption

A. Notwithstanding section 41‑3451, subsection J, Arizona Revised Statutes, the automobile theft authority shall adjust the semiannual fee paid by insurers issuing motor vehicle liability insurance policies in this state so that the amount collected in fiscal year 2013‑2014 does not exceed one hundred ten per cent of the automobile theft authority's appropriated budget.

B. The automobile theft authority is exempt from the rule making requirements of title 41, chapter 6, Arizona Revised Statutes, for the purpose of adjusting fees pursuant to subsection A of this section until June 30, 2014.