Chapter 0210 - 452R - S Ver of SB1436

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

Section 1. Section 35-101, Arizona Revised Statutes, is amended to read:

END_STATUTE35-101. Definitions

In this chapter, unless the context otherwise requires:

1. "Allotment" means the allocation of an appropriation or other fund source over a full fiscal year within a budget program or expenditure class.

2. "Annual BUDGET UNIT" MEANS THE FOLLOWING AGENCIES:

(a) The department of education.

(b) The Arizona board of regents.

(d) ArIzONa state university west campus.

(e) aRIZONA STATE UNIVERSITY EAST CAMPUS.

(f) The university of ARizona.

(g) Northern Arizona university.

(h) The state board of directors for community colleges.

(i) The school facilities board.

(j) The department of economic security.

(k) The state department of corrections.

(l) The department of juvenile corrections.

(m) The ARizona health care cost containment system.

(n) The department of health services.

(o) The department of administration.

(p) The department of transportation.

(q) The judiciary, including the supreme court, the court of appeals and the superior court.

2. 3. "Authorized agent" means a commercial enterprise contracted to process transactions on behalf of a state agency.

4. "Biennial budget unit" means any department, commission, board, institution or other agency of the state organization receiving, expending or disbursing state funds or incurring obligations against the state that is not an annual budget unit.

3. 5. "Budget estimates" means statements with accompanying explanations, as provided by this chapter, in which a budget unit states its financial requirements and requests appropriations.

4. 6. "Budget program" means functions and activities of a budget unit or within a budget unit that are preplanned to fulfill a distinct mission.

5. 7. "Budget unit" means any department, commission, board, institution or other agency of the state organization receiving, expending or disbursing state funds or incurring obligations against the state. BUDGET UNIT INCLUDES THE annual BUDGET UNITS and biennial budget units.

6. 8. "Cardholder" means any person:

(a) Named on the face of a credit card to whom or for whose benefit the credit card is issued by an issuer.

(b) In possession of a credit card with the consent of the person to whom the credit card was issued.

7. 9. "Claim" means a demand against the state for payment for either:

(a) Goods delivered or, in the case of highway construction, goods or facilities to be delivered, by the federal government.

(b) Services performed.

8. 10. "Convenience fee" means an additional fee THAT IS imposed by an authorized agent on an electronic transaction AND that would not be charged if the same transaction were completed in person.

9. 11. "Credit card" means:

(a) Any instrument or device, whether known as a credit card, charge card, credit plate, courtesy card or identification card or by any other name, issued with or without a fee by an issuer for the use of the cardholder in obtaining money, goods, services or anything else of value, either on credit or in possession or in consideration of an undertaking or guaranty by the issuer of the payment of a check drawn by the cardholder, on a promise to pay in part or in full at a future time, whether or not all or any part of the indebtedness represented by this promise to make deferred payment is secured or unsecured.

(b) Any debit card, electronic benefit transfer card or other access instrument or device, other than a check that is signed by the holder or other authorized signatory on the deposit account, that draws monies from a deposit account in order to obtain money, goods, services or anything else of value.

(c) Any stored value card, smart card or other instrument or device that enables a person to obtain goods, services or anything else of value through the use of value stored on the instrument or device.

(d) The number assigned to an instrument or device described in subdivisions SUBDIVISION (a), (b) and OR (c) of this paragraph even if the physical instrument or device is not used or presented.

10. 12. "Discount fee" means the fee calculated and charged by the card issuer or the processing financial institution, pursuant to a merchant agreement for the processing of any credit card transaction.

11. 13. "Encumbrance" means an obligation in the form of any purchase order, contract or other commitment which is chargeable to an appropriation or any other authorized fund source and for which a part of the fund source is reserved. It ceases to be an encumbrance when paid or canceled.

12. 14. "Expenditure class" means one of the kinds of expenditure denoting a class of services or commodities purchased or properties acquired as specified in the classification of expenditures prescribed by the director of the department of administration for use in expenditure accounting, in making budget estimates and in the budget reports and budgets.

13. 15. "Issuer" means any business organization, state agency or financial institution, or its duly authorized agent, that issues a credit card.

14. 16. "Prepayment" means the payment of a claim before receiving the goods or services.

15. 17. "Purchase order" means a document that is signed by the appropriate agency authorized signatory, that requests a vendor to deliver described goods or services at a specific price and that on delivery and acceptance of the goods or services by this state becomes an obligation of this state.

16. 18. "Transaction amount" means the total amount due to the state for any goods, service or license or anything else of value. END_STATUTE

Sec. 2. Section 35-111, Arizona Revised Statutes, is amended to read:

START_STATUTE35-111. Executive budget; revisions

Every year FOR annual BUDGET UNITS AND BIENNIALLY IN ODD-NUMBERED YEARS FOR biennial BUDGET UNITS, not later than five days after the regular session of the legislature convenes in odd-numbered years, the governor shall submit to the legislature a budget containing a complete plan of expenditures proposed to be made before the close of the two ensuing fiscal years for biennial budget units and for the next fiscal year for annual budget units and all monies and revenues estimated to be available therefor, together with an explanation of the basis of the estimates and recommendations as to proposed legislation, if any, which the governor deems necessary to provide revenues sufficient to meet the proposed expenditures. The plan shall delineate each fiscal year separately. Not later than five days after the regular session of the legislature convenes in even-numbered years, the governor may submit to the legislature any proposed revisions to the enacted budgets for the current and ensuing fiscal years. The plan shall include an estimate of all available monies and revenues and an explanation for any changes to the enacted budgets. END_STATUTE

Sec. 3. Section 35-112, Arizona Revised Statutes, is amended to read:

START_STATUTE35-112. Forms for budget unit estimates; date of transmittal

A. The governor shall prescribe the forms to be used by the budget units in submitting their budget estimates and requests for appropriations in accordance with the provisions of this chapter and shall prepare necessary instructions for guidance of officials in preparing the budget estimates and requests.

B. On or before June 1 of each even-numbered year, the governor shall transmit to the administrative head of each budget unit at least three complete sets of prescribed forms on which budget estimates and requests for appropriations for the next two ensuing fiscal years year are to be submitted. END_STATUTE

Sec. 4. Section 35-113, Arizona Revised Statutes, is amended to read:

START_STATUTE35-113. Submission of budget estimates

Every year for annual budget units and biennially in even-numbered years for biennial budget units, the head of each budget unit, not later than September 1 of each even-numbered year or at a later date not to exceed thirty days after September 1 if approved by the director of the governor's office of strategic planning and budgeting, shall submit to the governor, with five copies, estimates of the financial requirements and of receipts of the budget unit for the next two ensuing fiscal years for biennial budget units and for the next fiscal year for annual budget units. The estimates shall be on the forms and in the manner prescribed by the governor with explanatory data that may be required, together with additional information the head of the budget unit desires to submit. the governor may require biennial budget units to submit budget estimates more often than every two years. By July 1, 1998, the staff of the joint legislative budget committee and the governor's office of strategic planning and budgeting shall issue a schedule specifying the year in which each budget unit shall begin submitting the financial requirements for each program and subprogram for which the budget unit is wholly or partially responsible as determined pursuant to section 35‑122. All budget units shall be converted by fiscal year 2006. The estimate so submitted shall bear the approval of the administrative head of the budget unit. END_STATUTE

Sec. 5. Section 35-114, Arizona Revised Statutes, is amended to read:

START_STATUTE35-114. Continuous financial planning; submission of tentative budget report; appropriations estimate report

A. The governor shall have in continuous process of preparation and revision a tentative budget report for the next two ensuing years for biennial budget units and for the next fiscal year for annual budget units for which a budget report is required to be prepared. Upon receipt of the estimates of the several budget units the governor shall check the estimates with information available to the governor and shall make further inquiries and investigations and recommend changes in the tentative budget report the governor deems warranted.

B. The governor's office of strategic planning and budgeting in consultation with the joint legislative budget committee staff shall determine and report to the governor and the legislature an estimate of appropriations subject to the limit imposed by article IX, section 17, Constitution of Arizona. The report shall be published by:

1. February 15 of each odd-numbered year for the preceding fiscal year, for the current fiscal year and for the ensuing fiscal year to reflect the budget recommendations of the governor. for the two ensuing fiscal years.

2. November 1 of each year to reflect the total amount appropriated for the current and preceding fiscal years. END_STATUTE

Sec. 6. Section 35-115, Arizona Revised Statutes, is amended to read:

START_STATUTE35-115. Contents of budget report

Each budget report of odd-numbered years as required by section 35-111 shall include the following:

1. Summary statements of the financial condition of the state, to include:

(a) A consolidated balance sheet showing all current assets and liabilities of the state at the close of the fiscal year last concluded.

(b) Summary statements of the actual income and expenditures of the fiscal year last concluded.

2. Schedules showing actual income from each source for the preceding fiscal year and the estimated income of the current fiscal year and of the two ensuing fiscal years for biennial budget units and for the next fiscal year for annual budget units. The statements of income and estimated income shall be itemized by source, by budget units and sources, and by funds and shall show separately revenue from nonrevenue, all detailed by sources.

3. Detailed comparative statements of expenditures and requests for appropriations by funds, budget units, budget programs and budget classes, showing the expenditures for the fiscal year last concluded, and the estimated expenditures for the current year, and the request of each budget unit and the governor's recommendations for appropriations for the two ensuing fiscal years for biennial budget units and for the next fiscal year for annual budget units, all distributed according to budget programs and budget classes. In connection with each expenditure involving construction projects to be completed in one or more fiscal years, there shall be shown the total estimated cost of each project and the amount recommended to be appropriated and expended in each ensuing fiscal year until completion of the project. The state capital improvement plan and the governor's recommendations concerning the plan shall be incorporated into the budget report.

4. A summary statement for each fund of the cash resources estimated to be available at the beginning of the next two fiscal years for biennial budget units and for the next fiscal year for annual budget units and the estimated cash receipts for the two ensuing fiscal years for biennial budget units and for the next fiscal year for annual budget units, as compared with the total recommended amounts for appropriations for all budget programs and budget classes for the two ensuing fiscal years for biennial budget units and for the next fiscal year for annual budget units, and if the total of the recommended expenditures exceeds the total of the estimated resources, recommendations as to how the deficiency is to be met and estimates of receipts from any proposed additional revenues.

5. For the 1999-2000 each fiscal year and thereafter for annual budget units and biennially for biennial budget units, delineation, by budget unit, of requested expenditures for administrative costs, including administrative personnel salaries and employee related expenses and direct, indirect and shared costs for administrative office space, equipment, supplies and overhead. For purposes of this paragraph, "administrative" means any supportive activity relating to management, supervision, budget or execution of the affairs of the budget unit as distinguished from activities relating to its primary direct service functions. The process of delineation and determination of what constitutes administrative costs for each budget unit shall be developed by the governor's office of strategic planning and budgeting in consultation with the director and staff of the joint legislative budget committee.

6. A summary on one page or less providing selected performance measures of the budget unit for the previous fiscal year and the budget years. The performance measures may be expressed as service level measures on a unit cost basis and shall be established by the governor's office of strategic planning and budgeting in consultation with the director and staff of the joint legislative budget committee. END_STATUTE

Sec. 7. Section 35-116, Arizona Revised Statutes, is amended to read:

START_STATUTE35-116. Supervisory powers of governor relating to budget report; exceptions

A. Prior to submission of the budget report to the legislature, the governor shall examine the statements and estimates and shall make or cause to be made further investigations, with hearings before the governor, or the governor's designee, and shall make changes or revisions in appropriations requested that the governor deems advisable.

B. The judiciary and the legislature shall not be subject to the control of the governor in the preparation and submission of budgets, but shall submit their its requests for appropriations for the two ensuing fiscal years to the governor for review by the legislature.

C. The judiciary shall not be subject to the control of the governor in the preparation and submission of budgets, but shall submit its requests for appropriations for the ensuing fiscal year to the governor for review by the legislature.

C. D. The appropriation requests of the Arizona board of regents and the department of transportation for the ensuing fiscal year may be revised by the governor, but the governor shall also submit the appropriation request prepared and submitted by the budget unit in its original form to the legislature for review. END_STATUTE

Sec. 8. Section 35-119, Arizona Revised Statutes, is amended to read:

START_STATUTE35-119. Assistance to appropriation committees

From the time of transmission of the budget report to the legislature until the appropriation act or acts have been finally disposed of, the director of the department of administration governor's office of strategic planning and budgeting, in person or by an assistant, shall be available to the legislature and the appropriation committees thereof for explanation of any recommendation made in the governor's budget report to the legislature. END_STATUTE

Sec. 9. Section 35-121, Arizona Revised Statutes, is amended to read:

START_STATUTE35-121. Format of appropriations

The format of the appropriations for the support and maintenance of state departments and institutions shall be for each fiscal year for the annual budget units, and for the biennial budget units, for two fiscal years, itemized separately for each fiscal year. END_STATUTE

Sec 10. Section 35-122, Arizona Revised Statutes, is amended to read:

START_STATUTE35-122. Strategic plans; program lists; compilation

A. Consistent with instructions issued by the governor, the administrative head of each budget unit is responsible for developing a list of programs for the budget unit. For purposes of this section, a program may include a subprogram as determined by the governor’s office of strategic planning and budgeting and the staff of the joint legislative budget committee. In consultation with the staff of the joint legislative budget committee, the governor’s office of strategic planning and budgeting may modify the list of programs submitted by each budget unit. :

1. Developing a strategic plan for the entire budget unit. At a minimum, the plan shall extend for the current fiscal year and the two ensuing fiscal years and shall contain a mission statement, goals, objectives and performance measures for the budget unit as a whole. The performance measures shall be stated in terms that are consistent with a budget unit’s goals and objectives and that emphasize results. The strategic plan shall be submitted to the governor’s office of strategic planning and budgeting and to the staff of the joint legislative budget committee by September 1 of each year.

2. Developing a strategic plan for each program identified in subsection B of this section. The plan shall use the same format as the plan required under paragraph 1. These plans shall not be submitted to the governor’s office of strategic planning and budgeting and the staff of the joint legislative budget committee unless otherwise required for a strategic program area review authorized by section 41-1275.

B. Consistent with instructions issued by the governor, the administrative head of each annual budget unit is responsible for:

1. Developing a list of programs five-year strategic plan for the entire budget unit. For each program the list shall include a description, its mission statement, goals, performance measures that emphasize results and budgetary data for the current and prior fiscal year. The budgetary data shall include funding amounts, regardless of source. The list of programs shall be submitted to the governor’s office of strategic planning and budgeting by September 1 of each year. The governor’s instructions shall allow budget units with a minimal number of programs to consolidate their submissions for the strategic plan required under subsection A of this section with the list of programs required under this subsection. The strategic plan shall be updated annually as necessary. The plan shall contain strategic issues, a mission statement, description, goals, strategies and resource assumptions. The resoURce assumptions shall include the number of full-time equivalent positions and BUdgEtary data, including all funding sources categorized by general fund, other appropriated funds, non‑appropriated funds and federal funds that are required to support the strategic plan. The strategic plan shall be posted on the agency’s official internet website and submitted to the governor’s office of strategic planning and budgeting and to the staff of the joint legislative budget committee by january 1 of each year. The senate appropriations committee and the house of representatives appropriations committee shall review the strategic plans annually.

2. Developing an operating plan for each program identified in subsection A. The plan shall use the format required in subsection E and be submitted to the governor’s office of strategic planning and budgeting by September 1 of each year. Each year annual budget units shall submit performance measures and budgetary data for the prior, current and ensuing fiscal year.

3. Developing a mission statement, description and strategic issues for the entire budget unit as part of the operating plan to be submitted to the governor’s office of strategic planning and budgeting by September 1 of each year. The mission statement, description and strategic issues shall be submitted at the same time to the staff of the joint legislative budget committee.

C. Consistent with instructions issued by the governor, the administrative head of each biennial budget unit is rEsponsible for:

1. Developing an operating plan for each program identified in subsection A. The plan shall use the format required in subsection E and be submitted to the governor’s office of strategic planning and budgeting by September 1 of each year. In even numbered years, biennial budget units shall submit performance measures and budgetary data for the prior, current and two ensuing fiscal years. In odd numbered years, biennial budget units shall submit performance measures and budgetary data for the prior, current and one ensuing fiscal year.

2. Developing a mission statement, description and strategic issues for the entire budget unit as part of the operating plan to be submitted to the governor’s office of strategic planning and budgeting by September 1 of each year. The mission statement, description and strategic issues shall be submitted at the same time to the staff of the joint legislative budget committee.

D. Pursuant to subsection A, biennial budget units that have one program are responsible for the plan requirements of the program and the budget unit.

E. The operating plan shall include a mission statement, description, goals, performance measures that emphasize results and budgetary data. The budgetary data shall include funding amounts, regardless of source.

C. F. The governor’s office of strategic planning and budgeting shall compile the submissions required in subsection B, PARAGRAPHS 2 AND 3, AND SUBSECTION c of this section and no later than five days after the regular session of the legislature convenes of each even-numbered year shall publish a master list of programs that are performed or overseen by state government. In consultation with the staff of the joint legislative budget committee, the governor’s office of strategic planning and budgeting may modify the list of programs submitted by each budget unit. The master list shall include the program description, AGENCY DESCRIPTION, mission statement, strategic issues, goals, performance measures and budgetary data. The list shall include all programs that are administered jointly by two or more budget units.

D. For purposes of this section, a program may include a subprogram as determined by the governor’s office of strategic planning and budgeting and the staff of the joint legislative budget committee. END_STATUTE

Sec. 11. Section 41-723, Arizona Revised Statutes, is amended to read:

START_STATUTE41-723. Federal-state fiscal research officer; duties

A. The director shall designate a person to be in charge of preparation of the executive budget as the federal-state fiscal research officer.

B. The director or the federal-state fiscal research officer shall:

1. Confer with officials of federal agencies concerning grants‑in-aid generally, and particularly in regard to federal-aid programs in progress in the state of Arizona.

2. Report to the legislature at each regular session in odd‑numbered years findings and recommendations in the following areas:

(a) The total amount of federal grants-in-aid received by Arizona agencies during the preceding fiscal year.

(b) The total amount of federal grants-in-aid available to Arizona agencies during the preceding fiscal year, giving reasons for any difference between the amount of funds available to and the amount of funds accepted by Arizona agencies in all federal grant-in-aid programs.

(d) Federal grant-in-aid programs in which the state does not participate.

(e) Legislation necessary for activation of federal programs in which the state does not participate.

(f) Legislation necessary for improved operation of federal grant‑in‑aid programs in progress in the state of Arizona.

(g) Advisability of accepting new grant-in-aid programs or discontinuing programs already in progress.

3. Have access to the books, accounts, reports and vouchers and all other pertinent records of all state agencies for the purpose of carrying out the provisions of this section. END_STATUTE

Sec. 12. Section 41-793, Arizona Revised Statutes, is amended to read:

START_STATUTE41-793. Building systems; capital improvement plans

A. The department of administration, the Arizona board of regents and the department of transportation shall each be considered as a separate building system. Subject to approval by the joint committee on capital review, the director of the department of administration shall establish additional building systems for the purpose of computing and funding building renewal. Subject to approval by the joint committee on capital review, each building system shall designate an agency that is responsible for computing building renewal needs for the two ensuing each fiscal years year pursuant to the formula approved by the committee and for allocating appropriated building renewal monies within the building system.

B. The agency responsible for each building system established pursuant to subsection A of this section shall prepare every two years each year a capital improvement plan that contains proposals for state spending on land acquisition, capital projects, energy systems, energy management systems and building renewal for the building system. Copies of the plan shall be submitted to the governor no later than October 15 of each even‑numbered year. Each plan shall include:

1. A detailed list of all land acquisition and capital projects that are recommended to be undertaken or continued for the building system during the next two fiscal years year, an explanation as to the need for each acquisition or project, the effect of the recommended acquisition or capital project on the future operating expenses of this state, recommendations as to the priority of recommended acquisitions or capital projects and the means of financing those acquisitions or projects.

2. Forecasts as to the requirements for land acquisition and capital projects for the building system during the two fiscal years following the two fiscal years year provided for in paragraph 1 of this subsection and for any additional periods as may be necessary or desirable for an adequate presentation of the capital projects and a schedule for the planning and implementation or construction of those capital projects.

3. A report on the status of all ongoing or recently completed land acquisitions and capital projects for the building system, with a summary of monies expended for each acquisition or project.

4. A report on the condition, maintenance and utilization of all buildings within the building system that were inspected during the prior two fiscal years year.

5. A report on the building renewal activities undertaken during the past fiscal year, including the specific purposes for which monies were expended, proposed activities for the current fiscal year and a prioritized schedule of renewal projects proposed for the following two fiscal years year.

6. The amount of appropriation required in the following two fiscal years year for building renewal as determined by the building renewal formula set forth in section 41-793.01.

C. On or before June 1 of each even-numbered year or thirty days after the state legislature adjourns in an even-numbered year its regular session sine die, whichever is later, each state agency under the department of administration building system and not later than August 1 of each even‑numbered year each agency under the Arizona board of regents building system shall provide to the agency responsible for its building system:

1. A detailed list of land acquisition and capital projects the agency seeks to undertake or continue in the next two fiscal years year, an explanation as to the need for each acquisition or project, the effect of the acquisitions or capital projects on future operating expenses of this state, including energy systems and energy management systems, and other relevant supporting data requested by the agency responsible for the building system.

2. Forecasts as to the requirements for land acquisition or capital projects of the agency for the two fiscal years following the two fiscal years year provided for in paragraph 1 of this subsection and for any additional periods as may be necessary or desirable for the adequate presentation of the capital projects and a schedule for the planning and implementation or construction of those capital projects.

3. A report on all ongoing or recently completed land acquisitions and capital projects of the agency, with a summary of monies expended for each acquisition or project, and energy consumption and expenditure information.

4. Any other information requested by the agency responsible for the building system.

D. Each state agency in complying with subsection C, paragraph 1 of this section and the agency responsible for each building system in complying with subsection B, paragraph 1 of this section should give priority to fire and life safety projects.

E. The agency responsible for a building system shall inspect the condition, maintenance and utilization of each building within the building system not less than once every four fiscal years and shall report its findings pursuant to subsection B of this section. For purposes of complying with this requirement, the agency responsible for each building system shall inspect approximately fifty per cent of its buildings within the first two years of the four year cycle. The agency shall inspect the other fifty per cent of the buildings in the remaining two years of the four year cycle.

F. The portion of the plan relating to the first two fiscal years constitutes the recommendations of the agency responsible for the building system with respect to capital appropriations in the budget for the next two fiscal years.

G. F. The governor shall prescribe standard forms in accordance with the provisions of this section to be used by state agencies in preparing and submitting capital improvement plans. The forms prescribed shall be so constructed as to allow each building system to adequately provide information pertinent to its manner of operation.

H. G. Each plan, forecast and report required for two or more fiscal years in this section shall be delineated separately for each year.

END_STATUTE

Sec. 13. Section 41-1273, Arizona Revised Statutes, is amended to read:

START_STATUTE41-1273. Budget analyst; employees; duties

A. The joint legislative budget committee shall appoint a budget analyst and other clerical and technical employees that may be required.

B. The budget analyst shall serve full time as staff director and receive compensation as determined pursuant to section 38-611. The budget analyst, as a prerequisite for appointment, shall have demonstrated the budget analyst's competency and ability in the field of finance either in private business or public work.

C. The budget analyst may be removed from office prior to expiration of the budget analyst's term if, voting separately, a majority of the members of each body constituting the joint legislative budget committee votes in favor of removal.

D. The budget analyst shall prepare for distribution an analysis of the governor's budget as soon after the budget is presented to the legislature as is possible. The analysis, among other things, shall include recommendations of the budget analyst for revisions in expenditures.

E. In consultation with the governor's office of strategic planning and budgeting, the budget analyst shall determine and report to the governor and the legislature an estimate of appropriations subject to the limit imposed by article IX, section 17, Constitution of Arizona. The report shall be published by:

1. February 15 of each odd-numbered year for the preceding fiscal year, for the current fiscal year and for the ensuing fiscal year to reflect the budget recommendations of the joint legislative budget committee. for the ensuing fiscal year.

2. November 1 of each year to reflect the total amount appropriated for the preceding and current fiscal years.

F. By November 1 of each odd-numbered year, the budget analyst shall report and recommend to the committee:

1. A listing of funds that are recommended for elimination or consolidation that represents not more than seven per cent of the total number of funds in existence, including all federal, state and other sources of monies and grants.

2. A listing of funds for conversion from nonappropriated status to appropriated status that represents not more than seven per cent by dollar amount estimated of all state nonappropriated funds.

G. The legislature in making its appropriation for the operation of the legislature shall allocate a portion thereof for the operation of the joint legislative budget committee. END_STATUTE

Sec. 14. Applicability

The application of the provisions of this act shall begin for the 2003‑2004 fiscal year.