Chapter 0263 - 461R - S Ver of HB2533

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

Section 1. Section 5-504, Arizona Revised Statutes, is amended to read:

START_STATUTE5-504. Commission; director; powers and duties; definitions

A. The commission shall meet with the director not less than once each quarter to make recommendations and set policy, receive reports from the director and transact other business properly brought before the commission.

B. The commission shall oversee a state lottery to produce the maximum amount of net revenue consonant with the dignity of the state. To achieve these ends, the commission shall authorize the director to adopt rules in accordance with title 41, chapter 6. Rules adopted by the director may include provisions relating to the following:

1. Subject to the approval of the commission, the types of lottery games and the types of game play‑styles to be conducted.

2. The method of selecting the winning tickets or shares for noncomputerized on‑line games, except that no method may be used which, in whole or in part, depends on the results of a dog race, a horse race or any sporting event.

3. The manner of payment of prizes to the holders of winning tickets or shares including providing for payment by the purchase of annuities in the case of prizes payable in installments, except that the commission staff shall examine claims and may not pay any prize based on altered, stolen or counterfeit tickets or based on any tickets which fail to meet established validation requirements, including rules stated on the ticket or in the published game rules, and confidential validation tests applied consistently by the commission staff. No particular prize in a lottery game may be paid more than once, and in the event of a binding determination that more than one person is entitled to a particular prize, the sole remedy of the claimants is the award to each of them of an equal portion of the single prize.

4. The method to be used in selling tickets or shares, except that no elected official's name may be printed on such tickets or shares. The overall estimated odds of winning some prize or some cash prize, as appropriate, in a given game shall be printed on each ticket or share.

5. The licensing of agents to sell tickets or shares, except that a person under the age of eighteen shall not be licensed as an agent.

6. The manner and amount of compensation to be paid licensed sales agents necessary to provide for the adequate availability of tickets or shares to prospective buyers and for the convenience of the public, including provision for variable compensation based on sales volume.

7. Matters necessary or desirable for the efficient and economical operation and administration of the lottery and for the convenience of the purchasers of tickets or shares and the holders of winning tickets or shares.

C. The commission shall authorize the director to issue orders and shall approve orders issued by the director for the necessary operation of the lottery. Orders issued under this subsection may include provisions relating to the following:

1. The prices of tickets or shares in lottery games.

2. The themes, game play‑styles, and names of lottery games and definitions of symbols and other characters used in lottery games, except that each ticket or share in a lottery game shall bear a unique distinguishable serial number.

3. The sale of tickets or shares at a discount for promotional purposes.

4. The prize structure of lottery games, including the number and size of prizes available. Available prizes may include free tickets in lottery games and merchandise prizes.

5. The frequency of drawings, if any, or other selections of winning tickets or shares, except that:

(a) All drawings shall be open to the public.

(b) The actual selection of winning tickets or shares may not be performed by an employee or member of the commission.

6. Requirements for eligibility for participation in grand drawings or other runoff drawings, including requirements for the submission of evidence of eligibility within a shorter period than that provided for claims by section 5‑518.

7. Incentive and bonus programs designed to increase sales of lottery tickets or shares and to produce the maximum amount of net revenue for this state.

D. Notwithstanding title 41, chapter 6 and subsection B of this section, the director, subject to the approval of the commission, may establish a policy, procedure or practice that relates to an existing on‑line game or a new on‑line game which is the same type and has the same type of game play‑style as an on‑line game currently being conducted by the lottery or may modify an existing rule for an existing on‑line game or a new on‑line game which is the same type and has the same type of game play‑style as an on‑line game currently being conducted by the lottery, including establishing or modifying the matrix for an on‑line game by giving notice of the establishment or modification at least thirty days before the effective date of the establishment or modification.

E. Employees of the lottery, except employees who are involved in sales that require the employees to handle property that produces revenue for the lottery, are subject to title 41, chapter 4, articles 5 and 6. Employees who are involved in these sales activities are subject to personnel rules adopted by the commission. When adopting these personnel rules, the commission shall provide due process protections for the sales employees while taking into consideration the security and integrity necessary for the operation of the lottery.

F. The commission shall maintain and make the following information available for public inspection at its offices during regular business hours:

1. A detailed listing of the estimated number of prizes of each particular denomination expected to be awarded in any instant game currently on sale.

2. After the end of the claim period prescribed by section 5‑518, a listing of the total number of tickets or shares sold and the number of prizes of each particular denomination awarded in each lottery game.

3. Definitions of all play symbols and other characters used in each lottery game and instructions on how to play and how to win each lottery game.

G. Any information that is maintained by the commission and that would assist a person in locating or identifying a winning ticket or share or that would otherwise compromise the integrity of any lottery game is deemed confidential and is not subject to public inspection.

H. The commission shall, in addition to other games authorized by this article, establish two special games for each year to be conducted concurrently with other lottery games authorized under subsection B of this section. The monies for prizes, for operating expenses and for payment to the commerce and economic development commission fund, as provided in section 5‑522, subsection A, paragraph 2 3, shall be accounted for separately as nearly as practicable in the lottery commission's general accounting system. The monies shall be derived from the revenues of the special games, and monies for prizes do not become an expense to the lottery commission's annual appropriation as provided in section 5‑505, subsection D and section 5‑522, subsection H. Monies saved from the revenues of the special games, by reason of operating efficiencies, shall become other revenue of the lottery commission and revert to the state general fund.

I. The commission may, in addition to other games authorized by this article, establish multistate lottery games to be conducted concurrently with other lottery games authorized under subsections B and H of this section. The monies for prizes, for operating expenses and for payment to the local transportation assistance fund, as provided in section 28‑8101, and the state general fund shall be accounted for separately as nearly as practicable in the lottery commission's general accounting system. The monies shall be derived from the revenues of multistate lottery games.

J. The commission or director shall not establish or operate any on‑line or electronic keno game or any game played on the internet.

K. The director shall print, in a prominent location on each lottery ticket or share, a statement that help is available if a person has a problem with gambling and a toll free telephone number where problem gambling assistance is available. The director shall require all licensed agents to post a sign with the same statement that help is available if a person has a problem with gambling and the same toll free telephone number at the point of sale as prescribed and supplied by the director. The requirements of this subsection apply to tickets and shares printed after the effective date of this section July 18, 2000.

L. For the purposes of this section:

1. "Game play‑style" means the process or procedure that a player must follow to determine if a lottery ticket or share is a winning ticket or share.

2. "Matrix" means the odds of winning a prize and the prize payout amounts in a given game.END_STATUTE

Sec. 2. Section 5-505, Arizona Revised Statutes, is amended to read:

START_STATUTE5-505. Apportionment of revenue

A. Not more than eighteen and one‑half per cent of the total annual revenues accruing from the sale of lottery tickets or shares and from all other sources shall be deposited in the state lottery fund established pursuant to section 5‑521 to be expended for the following:

1. The payment of costs incurred in the operation and administration of the lottery, including the expenses of the commission and the costs resulting from any contract or contracts entered into for consulting or operational services, or for promotional and advertising services. Not more than four per cent of the total annual gross revenues of the lottery shall be expended for promotional or advertising services.

2. Independent audits, which shall be performed annually in addition to the audits required by section 5‑524.

3. Incentive programs for lottery sales agents and lottery employees.

4. Payment of compensation to licensed sales agents necessary to provide for the adequate availability of tickets or services to prospective buyers and for the convenience of the public. Compensation of licensed sales agents shall be at least six and one‑half per cent but not more than seven per cent of the price of each ticket or share that a retail sales agent sells in instant games and on‑line games, less the price of any tickets or shares that are voided.

5. The payment of reasonable fees to redemption agents as authorized by section 5‑519.

6. The purchase or lease of lottery equipment, tickets and materials.

7. Abstinence-only education programs that are funded in the department of health services and that are designed to reduce teenage pregnancy in this state. The amounts for these programs shall be specified in the general appropriations act.

B. Not less than twenty‑nine per cent of the total annual revenues accruing from the sale of lottery tickets or shares in on‑line games and not less than twenty‑one and one‑half per cent of the total annual revenues accruing from the sale of lottery tickets or shares in instant games shall be deposited in the state lottery fund established pursuant to section 5‑521 to be used as prescribed in section 5‑522, subsection A, paragraphs 2, 3, 4, and 5 and 6, and section 5‑522, subsections B, C, D and E.

C. Not less than fifty per cent of the total annual revenues accruing from the sale of lottery tickets or shares shall be deposited in the state lottery prize fund established pursuant to section 5‑523 for payment of prizes to the holders of winning tickets or shares or for other purposes provided for in section 5‑518.

D. Except for monies for prizes expended as provided in section 5‑504, subsection H and section 41‑1505.10, monies expended under subsection A of this section shall be subject to legislative appropriation. END_STATUTE

Sec. 3. Section 5-522, Arizona Revised Statutes, as amended by Laws 2002, third special session, chapter 1, section 1, is amended to read:

START_STATUTE5-522. Use of monies in state lottery fund

A. The monies in the state lottery fund shall be expended only for the following purposes and in the order provided:

1. For the expenses of the commission incurred in carrying out its powers and duties and in the operation of the lottery.

2. For abstinence-only education programs that are funded in the department of health services and that are designed to reduce teenage pregnancy in this state. The amounts for these programs shall be specified in the general appropriations act.

2. 3. For payment to the commerce and economic development commission fund established by section 41-1505.10 of not less than twenty-one and one‑half per cent of the revenues received from the sale of two special lottery games conducted for the benefit of economic development.

3. 4. Except as provided in subsection F of this section, for payment to the local transportation assistance fund established by section 28-8101 of not less than twenty-nine per cent of the revenues received from the sale of multistate lottery games, up to a maximum of eighteen million dollars each fiscal year.

4. 5. For payment to the Arizona clean air fund established by section 41-1516 state general fund of not less than twenty-one and one-half per cent of the revenues received from the sale of any instant bingo games conducted by the state lottery and not less than twenty-nine per cent of the revenues received from the sale of any on-line three-number games conducted by the state lottery, up to a maximum of ten million dollars each fiscal year, except that if on or before June 1 of each fiscal year the state lottery director determines that monies available to the Arizona state parks board heritage fund under subsection D of this section may not equal ten million dollars in that fiscal year or that the monies available to the Arizona game and fish commission heritage fund under subsection D of this section may not equal ten million dollars in that fiscal year, or both, the director shall authorize deposits to the Arizona state parks board heritage fund in an amount so that the total monies in that fund in that fiscal year equal ten million dollars or to the Arizona game and fish commission heritage fund in an amount so that the total monies in that fund in that fiscal year equal ten million dollars, or both. The state lottery director shall not make any deposits pursuant to this paragraph until after the director's determination each fiscal year.

5. 6. Of the monies remaining in the state lottery fund from the sale of instant bingo games and on-line three-number games each fiscal year, thirty per cent shall be allocated to the funds and programs described in subsection E of this section and seventy per cent shall be deposited in the local transportation assistance fund established by section 28-8101. The director shall not allocate more than the amount specified in subsection E of this section for each fiscal year to the funds and programs described in subsection E of this section from the state lottery fund pursuant to this paragraph and subsection E of this section. A maximum of eighteen million dollars may be deposited in the local transportation assistance fund each fiscal year from the state lottery fund pursuant to this paragraph and paragraph 3 4 of this subsection.

B. Of the monies remaining in the state lottery fund after the appropriations authorized in subsection A of this section seventy-five per cent up to a maximum of twenty-three million dollars each fiscal year shall be deposited in the local transportation assistance fund established pursuant to section 28-8101 and twenty-five per cent up to a maximum of seven million six hundred fifty thousand dollars each fiscal year shall be deposited in the county assistance fund established pursuant to section 41-175. Monies distributed pursuant to this subsection shall be in addition to monies distributed pursuant to subsection A, paragraphs 3 4 and 5 6 of this section.

C. Notwithstanding subsection B of this section, if the state lottery director determines at the beginning of any fiscal year that monies available to cities, towns and counties under this section may not equal thirty million six hundred fifty thousand dollars, then the director shall not authorize deposits to the county assistance fund until the deposits to the local transportation assistance fund equal twenty-three million dollars.

D. Of the monies remaining in the state lottery fund each fiscal year after appropriations and deposits authorized in subsections A, B and C of this section, ten million dollars shall be deposited in the Arizona state parks board heritage fund established pursuant to section 41-502 and ten million dollars shall be deposited in the Arizona game and fish commission heritage fund established pursuant to section 17-297.

E. Of the monies remaining in the state lottery fund each fiscal year after appropriations and deposits authorized in subsections A, B, C and D of this section, and appropriations and deposits to the local transportation assistance fund authorized by this section, five million dollars shall be allocated to the department of economic security for the healthy families program established by section 8-701, four million dollars shall be allocated to the Arizona board of regents for the Arizona area health education system established by section 15-1643, three million dollars shall be allocated to the department of health services to fund the teenage pregnancy prevention programs established in Laws 1995, chapter 190, sections 2 and 3, two million dollars shall be allocated to the department of health services for the health start program established by section 36-697, two million dollars shall be deposited in the disease control research fund established by section 36‑274 and one million dollars shall be allocated to the department of health services for the federal women, infants and children food program. The allocations in this subsection shall be adjusted annually according to changes in the GDP price deflator as defined in section 41-563 and the allocations are exempt from the provisions of section 35-190, relating to lapsing of appropriations. If there are not sufficient monies available pursuant to this subsection, the allocation of monies for each program shall be reduced on a pro rata basis.

F. Notwithstanding subsection A, paragraph 3 of this section, for fiscal years through fiscal year 2000‑2001, if the state lottery director determines that monies available to the state general fund from the sale of multistate lottery games may not equal twenty-one million dollars in a fiscal year, then the director shall not authorize deposits to the local transportation assistance fund pursuant to subsection A, paragraph 3 of this section until the deposits to the state general fund from the sale of multistate lottery games equal twenty-one million dollars in a fiscal year. Notwithstanding subsection A, paragraph 3 4 of this section, for fiscal years beginning from and after June 30, 2001, if the state lottery director determines that monies available to the state general fund from the sale of multistate lottery games may not equal thirty-one million dollars in a fiscal year, then the director shall not authorize deposits to the local transportation assistance fund pursuant to subsection A, paragraph 3 4 of this section until the deposits to the state general fund from the sale of multistate lottery games equal thirty-one million dollars in a fiscal year.

G. All monies remaining in the state lottery fund after the appropriations and deposits authorized in this section shall be deposited in the state general fund.

H. Except for monies expended for prizes as provided in section 5-504, subsection H and section 41-1505.10, monies expended under subsection A of this section shall be subject to legislative appropriation. END_STATUTE

Sec. 4. Repeal

Section 5-522, Arizona Revised Statutes, as amended by Laws 2002, chapter 260, section 1, is repealed.

Sec. 5. Section 11-539, Arizona Revised Statutes, is amended to read:

START_STATUTE11-539. State aid to county attorneys fund

A. The state aid to county attorneys fund is established consisting of monies appropriated to the fund and monies allocated pursuant to section 41‑2421, subsections B and J. The purpose of the fund is to provide state aid to county attorneys for the processing of criminal cases.

B. The Arizona criminal justice commission shall administer the fund. The commission shall allocate fund monies to each county pursuant to section 41‑2409, subsection A.

C. All monies distributed or spent from the fund shall be used to supplement, not supplant, funding at the level provided in fiscal year 1997‑1998 by the counties for the processing of criminal cases by county attorneys.

D. Monies in the state aid to county attorneys fund are exempt from the provisions of section 35‑190 relating to lapsing of appropriations and monies allocated pursuant to section 41-2421, subsections B and J are subject to legislative appropriation. Any state general fund monies appropriated to the fund may be spent without further legislative appropriation.

E. On notice from the commission, the state treasurer shall invest and divest monies in the fund as provided by section 35‑313, and monies earned from investment shall be credited to the fund. END_STATUTE

Sec. 6. Section 11-588, Arizona Revised Statutes, is amended to read:

START_STATUTE11-588. State aid to indigent defense fund

A. The state aid to indigent defense fund is established consisting of monies appropriated to the fund and monies allocated to the fund pursuant to section 41-2421, subsections B and J. The purpose of the fund is to provide state aid to the county public defender, legal defender and contract indigent defense counsel for the processing of criminal cases.

B. The Arizona criminal justice commission shall administer the fund. The commission shall allocate monies in the fund to each county pursuant to section 41-2409, subsection C.

C. All monies distributed or spent from the fund shall be used to supplement, not supplant, funding at the level provided in fiscal year 1997‑1998 by counties for the processing of criminal cases by the county public defender, legal defender and contract indigent defense counsel in each county.

D. Monies in the state aid to indigent defense fund are exempt from the provisions of section 35‑190 relating to lapsing of appropriations and monies allocated pursuant to section 41-2421, subsections B and J are subject to legislative appropriation. Any state general fund monies appropriated to the fund may be spent without further legislative appropriation.

E. On notice from the commission, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund. END_STATUTE

Sec. 7. Section 12-102.02, Arizona Revised Statutes, is amended to read:

START_STATUTE12-102.02. State aid to the courts fund

A. The state aid to the courts fund is established consisting of monies appropriated to the fund and monies allocated pursuant to section 41‑2421, subsections B and J. The purpose of the fund is to provide state aid to the superior court, including the clerk of the superior court, and justice courts for the processing of criminal cases.

B. The supreme court shall administer the fund. The supreme court shall allocate monies in the fund to the superior court, including the clerk of the court, and the justice courts in each county according to the following composite index formula:

1. The three year average of the total felony filings in the superior court in the county, divided by the statewide three year average of the total felony filings in the superior court.

2. The county population, as adopted by the department of economic security, divided by the statewide population, as adopted by the department of economic security.

3. The sum of paragraphs 1 and 2 divided by two equals the composite index.

4. The composite index for each county shall be used as the multiplier against the total funds appropriated from the state general fund and other monies distributed to the fund pursuant to section 41‑2421.

C. The presiding judge of the superior court in each county, in coordination with the chairman of the county board of supervisors or the chairman's designee, the clerk of the superior court and the presiding justice of the peace of the county shall submit a plan to the supreme court that details how the funds allocated to the county pursuant to this section will be used and how the plan will assist the county in improving criminal case processing. The presiding judge of the superior court, the chairman of the board of supervisors or the chairman's designee, the clerk of the superior court and the presiding justice of the peace shall sign the plan and shall indicate their endorsement of the plan as submitted or shall outline their disagreement with any provisions of the plan. The supreme court may approve the plan or require changes to the plan in order to achieve the goal of improved criminal case processing.

D. By January 8, 2001 and every year thereafter by January 8, the supreme court shall report to the governor, the legislature, the joint legislative budget committee, each county board of supervisors and the Arizona criminal justice commission on the expenditure of the fund monies for the prior fiscal year and on the progress made in achieving the goal of improved criminal case processing. This information may be combined into one report with the information required pursuant to section 12‑102.01, subsection D.

E. All monies spent or distributed from the fund shall be used to supplement, not supplant, funding at the level provided in fiscal year 1997‑1998 by the counties for the processing of criminal cases in the superior court, including the office of the clerk of the superior court, and justice courts.

F. Monies in the state aid to the courts fund are exempt from the provisions of section 35‑190 relating to lapsing of appropriations and monies allocated pursuant to section 41-2421, subsections B and J are subject to legislative appropriation. Any state general fund monies appropriated to the fund may be spent without further legislative appropriation.

G. On notice from the supreme court, the state treasurer shall invest and divest monies in the fund as provided by section 35‑313, and monies earned from investment shall be credited to the fund. END_STATUTE

Sec. 8. Title 12, chapter 1, article 1, Arizona Revised Statutes, is amended by adding section 12-116.04, to read:

START_STATUTE12-116.04. County and municipal judicial collections; baseline limitation; transfer to state general fund; definition

A. On or before september 1, 2003, each county board of supervisors and each city or town council shall certify to the state treasurer baseline court collections for each quarter of fiscal year 2002-2003.

B. Beginning on September 15, 2003, and on a quarterly basis thereafter, each county board of supervisors and each city or town council shall certify to the state treasurer the amount collected above baseline court collections within fifteen days after the end of each quarter. If the reporting court determines that the total revenues exceed baseline collections for that quarter, seventy-five per cent of any amount above the baseline shall be transmitted to the state treasurer within fifteen days after the end of the quarter. Any monies received for the fourth quarter of any fiscal year shall be credited to that quarter.

C. The state treasurer shall deposit monies collected pursuant to subsection B in the state general fund.

D. Monies deposited in the state general fund pursuant to this section shall not exceed forty-five million dollars. Any monies received exceeding forty-five million dollars above baseline court collections shall be allocated as otherwise provided by law. If forty-five million dollars is deposited in the state general fund before the end of the fiscal year, the state treasurer shall notify each city or town council and county board of supervisors to no longer transmit revenues pursuant to subsection B.

E. In any quarter in a fiscal year, if year to date revenues received by the state treasurer exceed forty-five million dollars for that fiscal year, the state treasurer shall continue to collect monies from city or town councils and county boards of supervisors for that quarter. Once monies for that quarter are collected, the state treasurer shall determine the amount by which year to date collections exceed forty-five million dollars. Any monies collected by the state treasurer above forty-five million dollars in a fiscal year shall be distributed on a proportionate basis to city or town councils and to county boards of supervisors that have transmitted revenues pursuant to subsection B. The amount reallocated shall be based on the amount contributed by each city and county for that fiscal year.

F. For the purposes of this section, "baseline court collections" means the amount collected in filing fees, clerk fees, diversion fees, adult and juvenile probation fees, juvenile monetary assessments, fines, penalties, surcharges, sanctions and forfeitures in each municipal court, justice court and division of the superior court in fiscal year 2002-2003, but does not include any monies collected by the courts for clean elections, child support, restitution or exonerated bonds.

G. The state treasurer shall report by January 15, 2004 and April 15, 2004 on the amount of collections pursuant to subsections B and C of this section to the speaker of the house of representatives and the president of the senate. The collections deposited in the state general fund pursuant to this section are appropriated for costs of increased state employee health insurance and retirement rates in fiscal year 2003-2004 as provided in subsection H of this section.

H. Based on the amounts reported and appropriated pursuant to subsection G of this section, the joint legislative budget committee staff shall determine and the department of administration shall allocate to each agency’s or department’s employee related expenditures an amount for costs of increased state employee health insurance and retirement rates. In making its determination, the joint legislative budget committee staff shall allocate the first twenty three million dollars for increases in state employee health insurance costs and any remaining amount up to twenty one million dollars for increases in state employee retirement costs. END_STATUTE

Sec. 9. Section 13-901.02, Arizona Revised Statutes, is amended to read:

START_STATUTE13-901.02. Drug treatment and education fund

A. The drug treatment and education fund is established. The administrative office of the supreme court shall administer the fund.

B. Fifty per cent of the monies deposited in the drug treatment and education fund shall be distributed by the administrative office of the supreme court to the superior court probation departments to cover the costs of placing persons in drug education and treatment programs administered by a qualified agency or organization that provides such programs to persons who abuse controlled substances. Such monies shall be allocated to superior court probation departments according to a formula based on probation caseload to be established by the administrative office of the supreme court.

C. Fifty per cent of the monies deposited in the drug treatment and education fund shall be deposited in the state general fund except that the first six hundred fifty thousand dollars shall be distributed to the Arizona parents commission on drug education and prevention established by section 41‑1604.17.

D. The administrative office of the supreme court shall cause to be prepared at the end of each fiscal year after 1997 an accountability report card that details the cost savings realized from the diversion of persons from prisons to probation. A copy of the report shall be submitted to the governor and the legislature, and a copy of the report shall be sent to each public library in the state. The administrative office of the supreme court shall receive reimbursement from the drug treatment and education fund for any administrative costs it incurs in the implementation of this section.END_STATUTE

Sec. 10. Repeal

Section 13-3114, Arizona Revised Statutes, is repealed.

Sec. 11. Section 13-3827, Arizona Revised Statutes, is amended to read:

START_STATUTE13-3827. Internet sex offender web site; investigation of records; immunity; fund

A. The department of public safety shall establish and maintain an internet sex offender web site for offenders whose risk assessment has been determined to be a level two or level three. The purpose of the internet sex offender web site is to provide sex offender information to the public.

B. The internet sex offender web site shall include the following information for each convicted sex offender in this state who is required to register pursuant to section 13‑3821:

1. The offender's name, address and date of birth.

2. A current photograph.

3. The offense committed and notification level pursuant to section 13‑3826, subsection E, if a risk assessment has been completed pursuant to section 13‑3825.

C. The department of public safety shall annually update on the web site the name, address and photograph of each sex offender.

D. The motor vehicle division of the department of transportation shall send copies of each sex offender's nonoperating identification license or driver license photograph to the department of public safety for inclusion on the sex offender web site.

E. The department of public safety shall annually verify the addresses of all sex offender registration records contained within the Arizona criminal justice information system. Before including the address of a sex offender on the web site, the department of public safety shall confirm that the address is correct. To confirm a sex offender's address, the department shall conduct a search of the Arizona criminal justice information system. If this search does not provide the necessary confirmation, the department shall use alternative public and private sector resources that are currently used for criminal investigation purposes to confirm the address. The department of public safety is prohibited from using or releasing the information from the alternative public and private sector resources except pursuant to this section. A custodian or public or private sector resource that releases information pursuant to this subsection is not civilly or criminally liable in any action alleging a violation of confidentiality.

F. The department of public safety may petition the superior court for enforcement of subsection E of this section if a public or private sector resource refuses to comply. The court shall grant enforcement if the department has reasonable grounds to believe the records sought to be inspected are relevant to confirming the identity and address of a sex offender.

G. A person who provides or fails to provide information required by this section is not civilly or criminally liable unless the act or omission is wanton or wilful.

H. For the purposes of implementing this section, the department may charge and collect fees as determined by the director.

I. A sex offender monitoring fund is established consisting of fees collected pursuant to this chapter, and monies in the fund are subject to legislative appropriation. END_STATUTE

Sec. 12. Title 15, chapter 11, article 1, Arizona Revised Statutes, is amended by adding section 15-1306, to read:

START_STATUTE15-1306. Arizona state schools for the deaf and the blind telecommunications tax fund

A. The Arizona state schools for the deaf and the blind telecommunications tax fund is established consisting of monies received from the telecommunications tax levied pursuant to section 42-5252, subsection A, paragraph 6. The Arizona state schools for the deaf and the blind shall administer the fund.

B. Monies in the fund shall be used for operating expenses of the Arizona state schools for the deaf and the blind and are subject to legislative appropriation.

C. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations. END_STATUTE

Sec. 13. Section 27-102, Arizona Revised Statutes, is amended to read:

START_STATUTE27-102. Duties; mines and mineral resources fund

A. The department shall:

1. Promote the development of the mineral resources and industry of this state by participating in conferences, seminars, forums, speaking engagements, public news media and other functions necessary to achieve its objectives.

2. Conduct studies of the economic problems of prospectors and operators of small mines for the purpose of assisting in their solution and investigate their properties to assist in development.

3. Maintain:

(a) An information bank and library of mineral and mining information, including books, periodicals, films, videotapes and individual mine files.

(b) Underground mine map repository files, mining district data and an archive of mine data.

(c) A mineral museum as the state depository for collecting, cataloging and displaying mineral specimens of various ores, gemstones, lapidary material and other valuable mineral specimens. the director may establish entrance fees to the museum for persons who are at least eighteen years of age.

4. Provide quality mining data, evaluation and assistance relating to mineral development to the legislature and other state and county agencies.

5. Make surveys of potential economic mineral resources and conduct field and other investigations which may interest capital in the development of the state's mineral resources.

6. Serve as a center of mining information for this state in matters relating to its mineral resources and monitor current mining and exploration activities.

7. Publish and disseminate information and data necessary or advisable to attain its objectives. The director may establish reasonable fees for publications.

8. Cooperate with the state land department to encourage mining activity on state lands.

9. Cooperate with the corporation commission in its investigations and administration of laws relating to the sale of mining securities.

10. Cooperate with the state geologist and deliver to the Arizona geological survey problems which the field work of the department shows to be within the scope of the activities of the Arizona geological survey.

11. Cooperate with federal and other agencies in matters related to developing mineral resources in this state.

12. Oppose congressional acts favoring reciprocal or duty free imports of foreign minerals.

13. Use its authority in other ways to assist in more extensive exploration and development of the mineral resources of the state.

B. A mines and mineral resources fund is established consisting of monies received pursuant to subsection A, paragraph 3, subdivision (c) and paragraph 7 of this section and section 27‑105, paragraph paragraphs 6 and 7. Monies in the fund are continuously appropriated to the department for purposes of administration of the provisions of this article, and monies in the fund are exempt from the provisions of section 35‑190 relating to lapsing of appropriations.END_STATUTE

Sec. 14. Section 27-111, Arizona Revised Statutes, is amended to read:

START_STATUTE27-111. Financial provisions

A. Monies received from any source by the department shall be deposited, pursuant to sections 35‑146 and 35‑147, in the appropriate funds mines and mineral resources fund established by section 27-102. Monies received pursuant to section 27‑105, paragraphs 6 and 7 shall be credited to a special account in the fund, designated as the department of mines and mineral resources fund account, to be used by the department in accordance with the provisions of section 27‑105, paragraph 6 or 7, as appropriate. monies received pursuant to section 27-102, subsection a, paragraph 3, subdivision (c) shall be credited to an account in the mines and mineral resources fund to be used for operations of the mineral museum. Monies obtained from the sale of publications under section 27‑102, subsection A, paragraph 7 shall be credited to the department's printing revolving account in the fund for printing further publications. Monies in the department's printing revolving fund account that at any time are in excess of ten thousand dollars shall immediately revert to the state general fund.

B. Monies in the department's printing revolving fund account up to an amount of ten thousand dollars and monies in other accounts in the department of mines and mineral resources fund are exempt from the provisions of section 35‑190 relating to the lapsing of appropriations.

C. Claims for expenses shall be approved by the director. END_STATUTE

Sec. 15. Section 28-401, Arizona Revised Statutes, is amended to read:

START_STATUTE28-401. Intergovernmental agreements

A. The department may contract under title 11, chapter 7, article 3 with a state public agency in this state or any other state if the general welfare of this state will be promoted and protected and if not in conflict with any other law.

B. The director shall enter into agreements on behalf of this state with political subdivisions or Indian tribes for the improvement or maintenance of state routes or for the joint improvement or maintenance of state routes.

C. The department may enter into an intergovernmental agreement pursuant to title 11, chapter 7, article 3 with a county with a population of more than two million persons according to the most recent United States decennial census for the construction, design, acquisition and attendant acquisition costs of a county highway bridge to provide direct access to commercial, residential and recreational facilities. The agreement shall:

1. Contain the commitment of the county to pay other monies for the purpose of financing the bridge.

2. State the responsibilities of each party with regard to planning, designing, constructing, owning and maintaining the bridge.

3. Provide that payment for the costs of the bridge shall be made from contributions from the parties to the agreement and other contributors before the use of state transaction privilege tax distributions.

D. The department may enter into an intergovernmental agreement pursuant to title 11, chapter 7, article 3 with a county with a population of more than two million persons for the design, reconstruction and improvement costs of a county highway approaching and traversing a bridge constructed pursuant to subsection C of this section. The agreement shall:

1. Contain the commitment of the county to pay other monies for the purpose of financing the highway improvements.

2. State the responsibilities of each party with regard to planning, designing, constructing, owning and maintaining the highway.

3. Provide that payment for the costs shall be made from contributions from the parties to the agreement and other contributors before the use of state transaction privilege tax distributions.

4. Provide for reimbursement to the state general fund of the amount of highway improvement revenues paid to the highway improvement interest fund or redemption fund under section 28-7656, subsection B on the voluntary conveyance of a majority ownership interest in a sports entertainment facility as prescribed by SECTION 42-5032, subsection B.

5. Be submitted to the joint legislative budget committee for its review before the execution of the agreement.

D. E. The department may enter into agreements with Indian tribes to provide a method or formula to refund taxes paid on exempt motor fuel purchases or use pursuant to this title. For the purposes of this subsection, "motor fuel" has the same meaning prescribed in section 28‑5601.

E. F. The department may enter into an intergovernmental agreement pursuant to title 11, chapter 7, article 3 that obligates the department to indemnify and defend a city, town, county, flood control district, irrigation district or agricultural improvement district or any other political subdivision or governmental agency against claims of liability for injuries, losses or damages incurred in any way as a result of the acts or omissions of the department, including acts, errors, omissions or mistakes of any person for which the department may be liable, and arising out of the construction, operation or maintenance of department projects or facilities or use of department projects or facilities. A city, town, county, flood control district, irrigation district or agricultural improvement district or any other political subdivision or governmental agency may enter into an intergovernmental agreement pursuant to title 11, chapter 7, article 3 that obligates such an entity to indemnify and defend the department against claims of liability for injuries, losses or damages incurred in any way as a result of the acts or omissions of such entity, including acts, errors, omissions or mistakes of any person for which the entity may be liable, and arising out of the construction, operation or maintenance of projects or facilities or use of projects or facilities. Any indemnification pursuant to an intergovernmental agreement must be approved by state risk management in the department of administration.END_STATUTE

Sec. 16. Section 28-737, Arizona Revised Statutes, is amended to read:

START_STATUTE28-737. High occupancy vehicle lanes; civil penalty; definition

A. Except as provided in section 28‑2416 and subsections B and C of this section, a person shall not drive a vehicle carrying fewer than two persons, including the driver, in a high occupancy vehicle lane at any time the use of the high occupancy vehicle lane is restricted to vehicles carrying two or more persons, including the driver.

B. If the department receives approval from the federal government allowing the use of high occupancy vehicle lanes by hybrid vehicles, a person may drive a hybrid vehicle with alternative fuel vehicle special plates, or an alternative fuel vehicle sticker, and a hybrid vehicle sticker issued pursuant to section 28‑2416 in high occupancy vehicle lanes at any time, regardless of occupancy level, without penalty.

C. During the performance of a tow truck operator's duties, a tow truck operator may drive a tow truck in a high occupancy vehicle lane, regardless of occupancy level, without penalty.

D. A person who violates subsection A of this section is subject to a civil penalty of two hundred dollars.

E. Notwithstanding section 28‑1554, one hundred dollars of each civil penalty collected pursuant to subsection D of this section shall be deposited in the Arizona clean air state general fund. established by section 49‑411 to provide grants to a regional planning agency in a county with a population of more than one million two hundred thousand persons for conversion of diesel fleets in the county to use alternative fuels or for acquisition of alternative fuel vehicles to replace diesel fleets in the county.

F. For the purposes of this section, "hybrid vehicle" means a factory‑manufactured vehicle that satisfies all of the following:

1. Combines two or more power train technologies to produce a vehicle with significantly lower fuel consumption than the average of its class.

2. Exhibits the storage of kinetic energy by use of regenerative braking and batteries or capacitors, and the stored energy is used to assist or provide full acceleration of the vehicle.

3. Allows a portion of the energy to be supplied from an internal combustion engine or fuel cell for vehicle acceleration and to store electrical energy on board.

4. Obtains all energy required to operate from storage fuel tanks placed on board the vehicle.

5. Has been approved by the United States environmental protection agency as meeting, at a minimum, the United States environmental protection agency ultralow emission vehicle standard pursuant to 40 Code of Federal Regulations section 88.104‑94.END_STATUTE

Sec. 17. Section 28-876, Arizona Revised Statutes, is amended to read:

START_STATUTE28-876. Parking spaces for electric vehicles; civil penalty

A. A person shall not stop, stand or park a motor vehicle within any parking space specially designated for parking and fueling motor vehicles fueled by electricity unless the motor vehicle is powered by electricity and has been issued an alternative fuel vehicle special plate or sticker pursuant to section 28‑2416.

B. If a law enforcement officer finds a motor vehicle in violation of this section, the law enforcement officer shall issue a complaint to the operator or other person in charge of the motor vehicle or, if an operator or other person is not present, to the registered owner of the motor vehicle for a civil traffic violation.

C. A person who is found responsible for a violation of this section is subject to a civil penalty of at least three hundred fifty dollars. Notwithstanding section 28‑1554, the civil penalties collected pursuant to this subsection shall be deposited in the Arizona clean air state general fund. established by section 49‑411.END_STATUTE

Sec. 18. Section 28-2413, Arizona Revised Statutes, is amended to read:

START_STATUTE28-2413. Environmental special plates

A. The department shall issue environmental special plates. The environmental special plates shall have the same basic color and design as the environmental license plates issued on or before December 31, 1992, except that the department may make minor alterations of environmental special plates to make the plates more reflective and readable during the daylight and nighttime hours.

B. Of the twenty‑five dollar fee required by section 28‑2402 for original environmental special plates and for renewal of environmental special plates, eight dollars is a special plate administration fee and seventeen dollars is an environmental plate annual donation.

C. The department shall deposit, pursuant to sections 35‑146 and 35‑147, all special plate administration fees in the state highway fund established by section 28‑6991 and shall deposit the environmental plate annual donations in the environmental special plate fund established by section 37‑1015 for disbursement by the state land department for environmental education programs for appropriation by the legislature. END_STATUTE

Sec. 19. Section 28-2416, Arizona Revised Statutes, is amended to read:

START_STATUTE28-2416. Alternative fuel vehicle special plates; stickers; use of high occupancy vehicle lanes; definitions

A. Beginning on April 1, 1997, a person who owns a motor vehicle that has either been converted or manufactured to use an alternative fuel and the alternative fuel was subject to the use fuel tax imposed pursuant to chapter 16 of this title before April 1, 1997 shall apply for alternative fuel vehicle special plates pursuant to this section.

B. A person who owns a motor vehicle that is a hybrid vehicle may apply for alternative fuel vehicle special plates pursuant to this section. The department shall issue alternative fuel vehicle special plates, or an alternative fuel vehicle sticker as provided in subsection E of this section, and a hybrid vehicle sticker to a person who satisfies the requirements prescribed in subsection C of this section. The hybrid vehicle sticker shall be designed by the department and shall be placed on the motor vehicle as prescribed by the department.

C. The department shall issue alternative fuel vehicle special plates, or an alternative fuel vehicle sticker as provided in subsection E of this section, to a person who satisfies all of the following:

1. Owns a motor vehicle that is powered by an alternative fuel or that is a hybrid vehicle.

2. Provides proof as follows:

(a) For an original equipment manufactured alternative fuel vehicle or hybrid vehicle, the dealer who sells the motor vehicle shall provide to the department of transportation and the owner of the motor vehicle a certificate indicating:

(i) That the motor vehicle is powered by an alternative fuel or is a hybrid vehicle.

(ii) The emission classification of the motor vehicle as low, inherently low, ultralow or zero.

(b) For a converted motor vehicle or a motor vehicle that is assembled by the owner, the department of environmental quality or an agent of the department of environmental quality shall provide a certificate to the department of transportation and the owner of the motor vehicle indicating that the motor vehicle is powered by an alternative fuel or is a hybrid vehicle.

3. Pays an eight dollar special plate administrative fee, except that vehicles that are registered pursuant to section 28‑2511 are exempt from that fee. The department shall deposit, pursuant to sections 35‑146 and 35‑147, all special plate administrative fees in the state highway fund established by section 28‑6991.

D. The color and design of the alternative fuel vehicle special plates are subject to the approval of the department of commerce energy office. The director may allow a request for alternative fuel vehicle special plates to be combined with a request for personalized special plates. If the director allows such a combination, the request shall be in a form prescribed by the director and is subject to the fees for the personalized special plates in addition to the fees required for alternative fuel vehicle special plates. Alternative fuel vehicle special plates are not transferable, except that if the director allows alternative fuel vehicle special plates to be personalized a person who is issued personalized alternative fuel vehicle special plates may transfer those plates to another alternative fuel vehicle for which the person is the registered owner or lessee.

E. If a motor vehicle qualifies pursuant to this section and any other special plates are issued pursuant to article 7, 8 or 13 of this chapter or section 28‑2514 for the motor vehicle, the department may issue an alternative fuel vehicle sticker to the person who owns the motor vehicle. The alternative fuel vehicle sticker shall be diamond‑shaped, shall indicate the type of alternative fuel used by the vehicle and shall be placed on the motor vehicle as prescribed by the department.

F. Except as provided in section 28‑737, subsection B, a person may drive a motor vehicle with alternative fuel vehicle special plates or an alternative fuel vehicle sticker in high occupancy vehicle lanes at any time, regardless of occupancy level, without penalty.

G. A person shall not drive a motor vehicle in a high occupancy vehicle lane with an alternative fuel vehicle sticker if the motor vehicle is not an alternative fuel vehicle or a hybrid vehicle for which an alternative fuel vehicle sticker and a hybrid vehicle sticker have been issued pursuant to this section. A person who violates this subsection is subject to a civil penalty of three hundred fifty dollars. Notwithstanding section 28‑1554, the civil penalty collected pursuant to this subsection shall be deposited in the Arizona clean air state general fund. established by section 49‑411.

H. The department shall mark high occupancy vehicle lane signs to indicate that those lanes may be used by alternative fuel vehicles regardless of the number of occupants. The design of the sign shall be the same as the design of the alternative fuel vehicle special plate, and the sign shall be at least as large as the high occupancy vehicle lane sign. These high occupancy vehicle lane signs are official traffic control devices. On highway exit signs the department shall also indicate access to alternative fuel vehicle fueling stations that are open to the public.

I. If the department publishes maps of the state highway system that are distributed to the general public, the department shall indicate on those maps the approximate location of alternative fuel delivery facilities that are open to the public.

J. For the purposes of this section:

1. "Alternative fuel" has the same meaning prescribed in section 1‑215.

2. "Hybrid vehicle" has the same meaning prescribed in section 28‑737. END_STATUTE

Sec. 20. Heading change

The article heading of title 28, chapter 21, article 4, Arizona Revised Statutes, is changed from "BONDS SECURED BY BRIDGE CONSTRUCTION REVENUES" to "BONDS SECURED BY BRIDGE CONSTRUCTION OR HIGHWAY IMPROVEMENT REVENUES".

Sec. 21. Section 28-7651, Arizona Revised Statutes, is amended to read:

START_STATUTE28-7651. Definitions

In this article, unless the context otherwise requires:

1. "Bond" means a bond secured solely by bridge construction revenues or a bond secured solely by highway improvement revenues as authorized and issued pursuant to this article.

2. "Bridge construction revenues" means monies received pursuant to section 42‑5032, subsection A, and deposited in the bridge construction interest fund or redemption fund under section 28‑7656, subsection A.

3. "Highway improvement revenues" means monies received pursuant to section 42-5032, subsection B and deposited in the highway improvement interest fund or redemption fund under section 28-7656, subsection B.END_STATUTE

Sec. 22. Section 28-7652, Arizona Revised Statutes, is amended to read:

START_STATUTE28-7652. Agreement for construction of bridge

A. The department and a county with a population of more than two million persons according to the most recent United States decennial census may enter into an intergovernmental agreement pursuant to title 11, chapter 7, article 3 for the construction of a bridge to provide direct access to commercial, residential and recreational facilities.

B. The agreement shall:

1. Contain the commitment of this state and the county to transfer bridge construction revenues to the county treasurer for deposit in the bridge construction interest fund or redemption fund under section 28‑7656, subsection A for the purpose of financing the construction, design, acquisition and attendant acquisition costs of the bridge.

2. Contain the commitment of the county to pay other monies for the purpose of financing the bridge.

3. Include this state's pledge of sufficient bridge construction revenues to fulfill this state's obligation for funding the bridge.

4. State the responsibilities of each party with regard to planning, designing, constructing, owning and maintaining the bridge.

5. Provide that payment for the costs of the bridge shall be made from contributions from the parties to the agreement and other contributors before the use of bond proceeds.

B. The department and the county may enter into an intergovernmental agreement pursuant to title 11, chapter 7, article 3 for the design, reconstruction and improvement of a county highway approaching and traversing a bridge constructed pursuant to subsection A of this section. The agreement shall:

1. Contain the commitment of this state and the county to transfer highway improvement revenues to the county treasurer for deposit in the highway improvement interest fund or redemption fund pursuant to section 28‑7656, subsection B for the purpose of financing the design, reconstruction and improvement costs of the highway.

2. Contain the commitment of the county to pay other monies for the purpose of financing the highway improvements.

3. Include this state's pledge of sufficient highway improvement revenues to fulfill this state's obligation for funding the highway improvements.

4. State the responsibilities of each party with regard to planning, designing, reconstructing, owning and maintaining the highway.

5. Provide that payment for the costs of the highway improvements shall be made from contributions from the parties to the agreement and other contributors before the use of bond proceeds. END_STATUTE

Sec. 23. Section 28-7653, Arizona Revised Statutes, is amended to read:

START_STATUTE28-7653. Bonds secured by bridge construction revenues; bonds secured by highway improvement revenues

A. If a majority of the members of the county board of supervisors authorizes the issuance of bonds secured by bridge construction revenues by resolution dated before July 1, 1998, the county may issue the bonds so authorized in the manner provided in this article. The bonds secured by bridge construction revenues may be authorized in an aggregate principal amount of not more than five million dollars.

B. If a majority of the members of the county board of supervisors authorizes the issuance of bonds secured by highway improvement revenues by resolution dated before December 31, 2003, the county may issue the bonds so authorized in the manner provided in this article. Bonds secured by highway improvement revenues may be authorized in an aggregate principal amount of not more than five million dollars.

C. All proceeds, revenues, accounting and payments with respect to bonds secured by bridge construction revenues pursuant to this article shall be conducted and maintained separately from those with respect to bonds secured by highway improvement revenues pursuant to this article.

B. d. The Bonds issued pursuant to this article shall not be considered to be a debt of the county or the state within any constitutional or statutory debt limit.

C. E. When the bonds issued pursuant to this article are sold, a schedule shall be filed with the county treasurer showing the amounts of principal and interest to be paid at each principal and interest payment date.

D. F. The county shall pledge all or any part of the bridge construction revenues to be received and the county's rights in the bridge construction intergovernmental agreement to the payment of an amount of the bonds secured by bridge construction revenues. The county shall pledge all or any part of the highway improvement revenues to be received and the county's rights in the highway improvement intergovernmental agreement to the payment of an amount of the bonds secured by highway improvement revenues. This pledge constitutes The pledges constitute an irrevocable assignment to the officer charged with paying the applicable bonds that is binding on the county. No notice of the assignment need be filed or recorded and no public notice of any nature is required to make the pledge effective against any person claiming an interest in the bridge construction revenues or highway improvement revenues, as applicable, except a holder of the bonds. On receipt of any payment of bridge construction revenues or highway improvement revenues, the county treasurer shall cause a sufficient portion of the amount received to be deposited in the bridge construction redemption fund and interest fund, or the highway improvement redemption fund or interest fund, established under section 28‑7656 pertaining to the applicable bonds.

E. G. No bridge construction bondholder may claim a preference as to source of payment over any other bridge construction bondholder of the same series. No highway improvement bondholder may claim a preference as to source of payment over any other highway improvement bondholder of the same series.END_STATUTE

Sec. 24. Section 28-7654, Arizona Revised Statutes, is amended to read:

START_STATUTE28-7654. Issuance of bonds

A. The county board of supervisors is authorized to issue bonds secured by a pledge of bridge construction revenues.

B. The county board of supervisors is authorized to issue bonds secured by a pledge of highway improvement revenues.

B. C. The Any bonds issued pursuant to this article may be issued in one or more series, bear the dates, be payable in the medium of payment and at the places, bear the rates of interest, including variable rates, carry the registration privileges and prior redemption provisions, be executed in the manner, contain the other terms, covenants and conditions and be in the form the board of supervisors prescribes. The bonds shall be sold at, above or below par in the manner as the board of supervisors determines.END_STATUTE

Sec. 25. Section 28-7655, Arizona Revised Statutes, is amended to read:

START_STATUTE28-7655. Characteristics of bonds

The bonds issued under this article:

1. Are fully negotiable within the meaning and for all purposes provided by title 47.

2. Are payable only according to their terms from bridge construction revenues or highway improvement revenues, as applicable, and are not general, special or other obligations of the issuing county or this state. The bonds do not constitute a legal debt of this state and are not enforceable against this state. Payment of the bonds shall not be made from any monies other than those allowed to be pledged.END_STATUTE

Sec. 26. Section 28-7656, Arizona Revised Statutes, is amended to read:

START_STATUTE28-7656. Interest funds; redemption funds

A. The treasurer of the county issuing the bonds secured by bridge construction revenues shall establish an interest fund and a redemption fund for paying the bonds. The treasurer shall deposit into the funds bridge construction revenues in amounts sufficient to pay the interest and principal of the bonds as they mature. The funds shall be used solely to pay principal and interest on the bonds.

b. The treasurer of the county issuing bonds secured by highway improvement revenues shall establish an interest fund and a redemption fund for paying the bonds. The treasurer shall deposit into the funds highway improvement revenues in amounts sufficient to pay the interest and principal of the bonds as they mature. The funds shall be used solely to pay the principal and interest on the bonds.

C. the funds under subsections A and B shall be established and maintained separately and used exclusively for the respective purposes for which they are established.END_STATUTE

Sec. 27. Section 28-7657, Arizona Revised Statutes, is amended to read:

START_STATUTE28-7657. Pledge of revenues to secure debt instruments

A. Notwithstanding any other provision of this article, a county that receives bridge construction revenues may pledge, by separate covenant included in the resolution authorizing the issuance of any bridge construction revenue bonds under this article or obligations it may incur, future receipts of the revenues to the payment of the bridge construction revenue bonds or to the costs of the bridge. The pledge may be included in the resolution authorizing the issuance of the bonds.

B. The resolution authorizing the issuance of the bonds may also authorize assigning bridge construction revenues to a trustee or paying agent to secure the bonds.

B. Notwithstanding any other provision of this article, a county that receives highway improvement revenues may pledge, by separate covenant included in the resolution authorizing the issuance of highway improvement revenue bonds under this article or obligations it may incur, future receipts of the revenues to the payment of the highway improvement revenue bonds or to the costs of the highway improvements. The pledge may be included in the resolution authorizing the issuance of the bonds. The resolution authorizing the issuance of the bonds may also authorize assigning highway improvement revenues to a trustee or paying agent to secure the bonds.END_STATUTE

Sec. 28. Section 28-7658, Arizona Revised Statutes, is amended to read:

START_STATUTE28-7658. Agreement of state

A. This state pledges to and agrees with the holders of the bonds secured by bridge construction revenues and highway improvement revenues that it will not limit, alter or impair the rights vested in a county under this article to receive bridge construction revenues or highway improvement revenues, as applicable, and as necessary to produce sufficient revenue to fulfill the terms of any intergovernmental agreements made with the county, or in any way impair the rights and remedies of the bondholders to receive bridge construction the necessary revenues, until all the applicable bonds issued under this article, are fully met and discharged.

B. The county may include this pledge and undertaking in its resolutions and indentures securing the bonds under this article.END_STATUTE

Sec. 29. Section 28-8101, Arizona Revised Statutes, is amended to read:

START_STATUTE28-8101. Local transportation assistance fund

A. A local transportation assistance fund is established consisting of:

1. Monies deposited from the state lottery fund pursuant to section 5‑522.

2. Monies appropriated pursuant to subsection B of this section.

3. Monies deposited pursuant to section 28‑5808, subsection C.

4. Interest earned on local transportation assistance monies as provided in subsection C of this section.

B. The legislature shall appropriate an amount that is necessary to provide that the total monies available in the local transportation assistance fund for each fiscal year equal twenty million five hundred thousand dollars.

C. The state treasurer shall invest and divest monies in the local transportation assistance fund as provided by section 35‑313, and monies earned from investment shall be credited to the fund.

D. A maximum amount of twenty‑three million dollars may be deposited in the local transportation assistance fund each fiscal year from the state lottery fund as provided in section 5‑522, subsection B.

E. A maximum amount of eighteen million dollars may be deposited in the local transportation assistance fund each fiscal year from the state lottery fund as provided in section 5‑522, subsection A, paragraphs 3 4 and 5 6.END_STATUTE

Sec. 30. Section 28-8103, Arizona Revised Statutes, is amended to read:

START_STATUTE28-8103. Special lottery and vehicle license tax monies; fund distribution; notice; proposals; annual financial report; definitions

A. Monies in the local transportation assistance fund pursuant to section 5‑522, subsection A, paragraphs 3 4 and 5 6 and section 28‑5808, subsection C shall be available for distribution by the department to the following in the proportion that the population of each bears to the total population of this state:

1. In each county with a population of one million two hundred thousand or more persons, to the public transportation fund established by section 48‑5103.

2. In each county with a population of five hundred thousand or more persons but less than one million two hundred thousand persons, to the metropolitan planning organization in the county.

3. In each county with a population of less than five hundred thousand persons, to cities and towns located in the county and to the county board of supervisors. The distribution to the county board of supervisors shall be based on the unincorporated population of the county.

B. The department shall not distribute more than eighteen million dollars in any one fiscal year as provided in this section. Monies distributed pursuant to this section are exempt from the provisions of section 35‑190 relating to lapsing of appropriations.

C. The department shall distribute monies to a public transportation fund or a metropolitan planning organization pursuant to subsection A, paragraphs 1 and 2 of this section when a regional public transportation authority or metropolitan planning organization certifies that its local monies have been spent or are in the process of being spent. The monies distributed pursuant to subsection A, paragraphs 1 and 2 of this section shall be further distributed as matching grants to cities and towns located in the county in the proportion that the population of each city or town bears to the total population in that county and to the board of supervisors in the proportion that the unincorporated population of the county bears to the total population in that county. The monies distributed pursuant to subsection A, paragraph 3 of this section shall be distributed as matching grants to cities, towns and boards of supervisors.

D. Monies distributed pursuant to subsection C of this section shall only be distributed to cities, towns and counties that satisfy the following match requirements:

1. For counties with a population of five hundred thousand or more persons, a match that is at least equal to the amount of grant monies requested by a county.

2. For counties with a population of less than five hundred thousand persons, a match that is at least equal to one‑fourth of the amount of grant monies requested by a county.

3. For cities with a population of fifty thousand or more persons, a match that is at least equal to the amount of grant monies requested by a city.

4. For cities or towns with a population of less than fifty thousand persons, a match that is at least equal to one‑fourth of the amount of the grant monies requested by a city or town.

E. A regional public transportation authority, a metropolitan planning organization and the department shall notify cities, towns and boards of supervisors within their jurisdictions of the maximum amount of matching grant monies available to them each year pursuant to this section. Each year cities, towns and counties may submit proposals to a regional public transportation authority, a metropolitan planning organization or the department requesting some or all of the matching grant monies available to them in that year. For distributions pursuant to subsection A, paragraph 1 or 2 of this section, each proposal shall certify that the city, town or county will invest local monies in an amount that is at least equal to the amount prescribed in subsection D of this section and shall detail a plan for spending all matching grant and local monies, and if a city, town or county complies with this section, the regional public transportation authority or metropolitan planning organization shall distribute matching grant monies to the city, town or county. For distributions pursuant to subsection A, paragraph 3 of this section, each proposal shall certify that the city, town or county will invest local monies in an amount that is at least equal to the amount prescribed in subsection D of this section and shall detail a plan for spending all matching grant and local monies.

F. Except as provided in subsection G of this section, monies distributed pursuant to this section shall be used only for public transit purposes, including operating and capital purposes, that are determined by the distributing agency to conform with the long‑range transportation plan or regional transportation plan.

G. A city, town or county may use monies it receives pursuant to this section for other transportation purposes if it receives less than two thousand five hundred dollars pursuant to this section in a calendar year pursuant to this section.

H. On or before November 1 of each year, a regional public transportation authority or metropolitan planning organization that receives monies pursuant to this section shall submit an annual report to the director that contains the following information that is attested to by an independent certified public accountant:

1. A schedule of beginning and ending fund balances.

2. All monies received pursuant to this section and the specific purposes for which they are spent, including whether they are spent for operating or capital purposes.

3. All local matching expenditures made pursuant to this section.

I. On or before January 1 of each year, the director shall submit a report on compliance with the reporting requirements prescribed in this section to the governor, the president of the senate, the speaker of the house of representatives and the joint legislative budget committee. The director's report shall include:

1. A determination of whether each regional public transportation authority and metropolitan planning organization has complied with the reporting requirements prescribed in this section.

2. A summary of the monies allocated to each regional public transportation authority and metropolitan planning organization pursuant to this section in the preceding fiscal year.

3. A summary of local monies spent on public transit pursuant to this section.

J. The director shall notify by certified mail each regional public transportation authority and metropolitan planning organization that is not in compliance with the reporting requirements prescribed in this section of its noncompliance. A regional public transportation authority or metropolitan planning organization that receives this notice shall comply with the reporting requirements prescribed in this section within thirty days after receipt of the notice. If a regional public transportation authority or metropolitan planning organization fails to comply with the reporting requirements prescribed in this section within thirty days after receipt of the notice, it is not eligible to receive any monies pursuant to this section in the next fiscal year.

K. A metropolitan planning organization, city, town or county may enter into an intergovernmental agreement with a federally recognized Indian tribe to provide financial assistance pursuant to this section for maintaining or operating an existing public transit service provided by the Indian tribe.

L. For the purposes of this section:

1. "Local monies" means:

(a) Revenue that is generated by a city, town or county from nonfederal sources and that was first appropriated by the city, town or county for public transit activities in or after fiscal year 1993‑1994.

(b) Donations that are received by a city, town or county from nongovernmental sources and that are in the form of monies or in‑kind contributions.

2. "Population" means the population of a city, town or county as defined pursuant to section 41‑563.

3. "Public transit" means local, regional or intercity transportation of passengers by means of a public conveyance, including para‑transit, and local transportation of passengers by car pool vehicle. For the purposes of this paragraph, "car pool vehicle" means any motor vehicle when operated by a car pool operator as defined in section 28‑4032.END_STATUTE

Sec. 31. Section 28-8345, Arizona Revised Statutes, is amended to read:

START_STATUTE28-8345. Registration fees; penalties; taxes; distribution

A. Monies received from the registration and penalties fees collected pursuant to this article shall be deposited, pursuant to sections 35‑146 and 35‑147, in the state aviation fund. MOnies received from civil penalties collected pursuant to this article shall be deposited, pursuant to sections 35-146 and 35-147, in the state general fund.

B. Not later than the fifteenth day of each month, the department shall transmit monies received from the taxes imposed under this article to the state treasurer who shall deposit the monies in the state aviation fund for use in the construction, development and improvement of airports. END_STATUTE

Sec. 32. Section 35-131, Arizona Revised Statutes, is amended to read:

START_STATUTE35-131. Accounting system; reports; notice of deficiency; forms

A. In accordance with generally accepted governmental accounting principles, the department of administration shall develop and prescribe for the use of all budget units a uniform accounting system so designed as to insure ensure compliance with all legal and constitutional requirements including those respecting the receipt and expenditure of and the accountability for public monies.

B. The department of administration shall maintain complete, accurate and current financial records relating to state monies and to other public monies in the state treasury available to, encumbered or expended by each budget unit, including trust monies or other monies not subject to appropriation, setting out all revenues, charges against all funds, fund and appropriation balances, interfund transfers, outstanding warrants and encumbrances, in a manner consistent with the uniform state accounting system, for the preparation of statewide financial statements in accordance with generally accepted governmental accounting principles.

C. Each month the department of administration shall prepare and submit to the governor a report summarizing by budget unit and appropriation or other fund source the above information in such form as will most clearly and accurately set out the current fiscal condition of the state and shall furnish to each budget unit a report of its transactions by appropriation or other fund source in a form that will clearly and accurately show the fiscal activity and condition of such appropriation or fund source.

D. The responsible official for each budget unit shall monitor reports prepared pursuant to subsection C of this section to identify any projected total deficiency for the budget unit fiscal year. On a determination of a projected deficiency, the official shall take any action necessary to assure continuing compliance with section 1-254 by notifying the governor, the speaker of the house of representatives, the president of the senate and the chairman of the joint legislative budget committee of the deficiency and the reasons for the deficiency. The initial notification of the deficiency shall be followed within ten business days by a report from the responsible budget unit official that includes the following:

1. A complete explanation of the causes of the deficiency.

2. A plan that assures that the deficiency will be resolved within the fiscal year without supplemental appropriation and that includes the policy and programmatic implications of the deficiency and the plan.

2. 3. A commitment to provide a progress report if the projected degree of deficiency changes substantially. The report shall include additional measures necessary to assure resolution of the deficiency within the fiscal year.

E. On request of the governor, the speaker of the house of representatives, the president of the senate or the chairman of the joint legislative budget committee, the responsible official for a budget unit shall also include in the report prescribed in subsection D of this section a plan that assures that the deficiency will be resolved within the fiscal year without supplemental appropriation and that includes the policy and programmatic implications of the deficiency and the plan.

F. E. On or before December 1 of each year the director of the department of administration shall submit to the governor a complete report of the financial transactions of the preceding fiscal year and of the financial condition of the state at the end of that year with such comments and supplementary data as the director of the department of administration deems necessary to make the report complete and readily understandable.

G. f. The director of the department of administration shall prescribe uniform classifications for assets, liabilities, receipts and expenditures and forms for the periodic reporting of financial accounts, transactions and other matters by budget units compatible with the reports required of the director of the department of administration under this section. Such records and accounts shall be maintained and reconciled by budget units. If required for reporting, the department of administration may establish or delete funds and budget units may maintain additional records for reporting to the federal government or other funding source.

H. G. Each organization that is included in the state's reporting entity as defined by generally accepted accounting principles shall submit all necessary financial statements or information to the department of administration on a basis of accounting that is consistent with generally accepted accounting principles and that is in accordance with the policies and procedures of the department of administration.END_STATUTE

Sec. 33. Repeal

Section 35-193.01, Arizona Revised Statutes, is repealed.

Sec. 34. Section 38-619, Arizona Revised Statutes, is amended to read:

START_STATUTE38-619. Performance based incentives program oversight committee

A. A performance based incentives program oversight committee is established consisting of:

1. The director of the department of administration or the director's designee.

2. The executive director of the Arizona board of regents or the executive director's designee.

3. Two members of the senate who are appointed by the president of the senate. The appointees shall be members of different political parties. One of these appointees shall be designated to cochair the committee.

4. Two members of the house of representatives who are appointed by the speaker of the house of representatives. The appointees shall be members of different political parties. One of these appointees shall be designated to cochair the committee.

5. The executive manager of the governor's office for excellence in government or the executive manager's designee.

6. 5. An agency director who is appointed by the governor.

7. 6. A representative from the governor's office of affirmative action equal opportunity who is appointed by the governor.

8. 7. Two public members who have expertise in compensation analysis. The speaker of the house of representatives shall appoint one of these members, and the president of the senate shall appoint one of these members.

B. The committee shall:

1. Develop and adopt guidelines for a state employee performance based incentives program. The guidelines shall include agency or university goals that result in cost reduction, increased productivity and improved quality of the delivery of state services or products.

2. Identify incentives and available resources to provide incentives, such as vacancy savings achieved in each state agency and state university.

3. Coordinate with state agencies and universities participating in the ongoing performance based incentives program to evaluate the success of the program.

4. Review agency and university requests to participate in a pilot incentive program or an established performance based incentive program and make recommendations on those requests to the director of the department of administration or the executive director of the Arizona board of regents.

C. The committee may recommend that the director of the department of administration or the executive director of the Arizona board of regents place an approved program on probationary status or terminate an approved program for failing to meet approved goals and objectives. END_STATUTE

Sec. 35. Section 40-109, Arizona Revised Statutes, is amended to read:

START_STATUTE40-109. Salaries and expenses of corporation commissioners

A. Each member of the corporation commission shall receive an annual salary pursuant to section 41-1904.

B. Except as provided in section 40-408, all salaries and expenses of members of the corporation commission incurred pursuant to the provisions of this article, including the actual and necessary traveling and other expenses and disbursements of the commissioners, their officers and their employees incurred while on business of the commission, are payable from the state general fund and the appropriation made other monies appropriated to the commission in the general appropriation bill. END_STATUTE

Sec. 36. Section 40-408, Arizona Revised Statutes, is amended to read:

START_STATUTE40-408. Disposition of assessment proceeds; utility regulation revolving fund; exemption from lapsing

A. The utility regulation revolving fund is established.

B. All monies received by the commission under the provisions of section 40‑401 shall be deposited, pursuant to sections 35‑146 and 35‑147, in the utility regulation revolving fund.

C. Subject to legislative appropriation, the commission shall use the monies in the utility regulation revolving fund for attorneys and other legal staff employed pursuant to section 40‑106, and all expenses of the utilities division, including compensation of auditors, economists and other staff, including staff with expertise in the area of corporate accounting, finance and management efficiency of all types of public service corporations, and a part of the expenses for the administrative and hearing and administration divisions, including expenses associated with the commissioners.

D. Monies in the utility regulation revolving fund do not revert to the state general fund pursuant to section 35‑190.

E. Monies not appropriated or expended from the utility regulation revolving fund at the end of the fiscal year shall be used to calculate the annual assessment prescribed in section 40‑401.

F. The utilities division shall not use any monies from the utility regulation revolving fund unless such monies are appropriated by the legislature. END_STATUTE

Sec. 37. Section 40-442, Arizona Revised Statutes, is amended to read:

START_STATUTE40-442. Civil penalty for violation; deduction; other remedies

A. Any person, firm or corporation that violates any provision of this article or any rule or order adopted pursuant to this article pertaining to the safety of the transportation of gas and hazardous liquids and pipeline facilities shall be subject to a civil penalty of not to exceed ten thousand dollars for each violation with each day constituting a separate violation. In no event shall the maximum civil penalty exceed five hundred thousand dollars for any related series of violations.

B. Any civil penalty pertaining to gas and hazardous liquid pipeline safety may be compromised by the commission. In determining the amount of the penalty, or the amount agreed upon in compromise, the appropriateness of the penalty to the size of the business of the person, firm or corporation charged, the gravity of the violation and the good faith of the person, firm or corporation charged in attempting to achieve compliance, after notification of a violation, shall be considered. The amount of the penalty, when finally determined, or the amount agreed upon in compromise, may be deducted from any sums owing by the state to the person, firm or corporation charged or may be recovered in a civil action in the superior court of this state.

C. All monies collected from civil penalties assessed pursuant to this article and any fines collected by the commission in enforcing this article and rules relating to pipeline safety shall be deposited, pursuant to sections 35-146 and 35-147, in the state general fund.

C. D. The commission may avail itself of any other authority or remedies available under the Constitution of Arizona and this chapter to effect the purpose of this article, including the provisions of article 9 of this chapter. END_STATUTE

Sec. 38. Section 40-443, Arizona Revised Statutes, is amended to read:

START_STATUTE40-443. Pipeline safety revolving fund

A. There is established A pipeline safety revolving fund is established. consisting of all monies collected from civil penalties assessed pursuant to this article and any other fine collected by the commission in enforcing this article and rules and regulations relating to pipeline safety.

B. Subject to legislative appropriation, monies in the fund shall be used for the purpose of meeting expenses and paying costs associated with gas and hazardous liquids and gas and hazardous liquids pipeline facilities safety, including public education, training, purchasing equipment, inspecting for leaks and other hazards, reviewing pipeline plans, installation and operation and any other activity of the commission under this article.

C. The monies in the fund are exempt from section 35-190 relating to lapsing of appropriations. END_STATUTE

Sec. 39. Title 41, chapter 1, article 5, Arizona Revised Statutes, is amended by adding section 41-191.09, to read:

START_STATUTE41-191.09. Attorney general legal services cost allocation charge

A. Beginning on July 1, 2003, all state agency appropriated and nonappropriated funds shall contribute a pro rata share of general agency counsel services provided by the department of law. The pro rata share is payable by payroll fund source, and the resultant amount shall be deposited in the state general fund. Beginning on July 1, 2003, the pro rata share for each fund shall be 0.53 per cent of the total payroll. For the purposes of this subsection, "total payroll" includes federal monies, special revenue funds, intergovernmental revenue monies, trust funds and other payroll fund sources. total payroll does not include any state general fund monies.

B. A claim for the pro rata share percentage payment shall be submitted according to the fund source, with the accompanying payroll, to the department of administration for deposit in the state general fund.

C. The following agencies are exempt from this section:

1. The department of water resources.

2. The residential utility consumer office.

3. The industrial commission.

4. The universities.

5. the auditor general.

6. The corporation commission.

7. The office of the governor.

8. The department of law.

9. The house of representatives.

10. the senate.

11. The joint legislative budget committee.

12. the ARizona state library, archives and public records.

13. The legislative council.

14. The department of administration risk management fund.

15. The department of transportation. END_STATUTE

Sec. 40. Section 41-511.23, Arizona Revised Statutes, is amended to read:

START_STATUTE41-511.23. Conservation acquisition board; land conservation fund; conservation donation and public conservation accounts

A. The conservation acquisition board is established, as an advisory body to the Arizona state parks board, consisting of the following members who are appointed by the governor, at least one of whom shall be experienced in soliciting money from private sources:

1. One state land lessee.

2. One member who is qualified by experience in managing large holdings of private land for income production or conservation purposes.

3. One member of the state bar of Arizona who is experienced in the practice of private real estate law.

4. One real estate appraiser who is licensed or certified under title 32, chapter 36.

5. One member who is qualified by experience in marketing real estate.

6. One representative of a conservation organization.

7. One representative of a state public educational institution.

B. The governor shall designate a presiding member of the board. The term of office is five years except that initial members shall assign themselves by lot to terms of one, two, three, two members for four and two members for five years in office.

C. The conservation acquisition board shall:

1. Solicit donations to the conservation donation account.

2. Consult with entities such as private land trusts, state land lessees, the state land department, the Arizona state parks board and others to identify conservation areas that are reclassified pursuant to section 37‑312 and that are suitable for funding.

3. Recommend to the Arizona state parks board appropriate grants from the land conservation fund.

D. The land conservation fund is established consisting of the following accounts:

1. The conservation donation account consisting of monies received as donations. Donations to the account are subject to any lawful conditions the donor may prescribe, including any conditions on the use of the money or reversion to the donor. Monies in the account are exempt from the provisions of section 35‑190 relating to lapsing of appropriations.

2. The public conservation account consisting of monies appropriated to the account from the state general fund and monies from any other designated source. In fiscal years 2000‑2001 through 2010‑2011, the sum of twenty million dollars is appropriated each fiscal year from the state general fund to the public conservation account in the land conservation fund for the purposes of this section. Monies in the account are appropriated for the purposes of this section, and the Arizona state parks board may spend monies in the account without further legislative authorization. Each expenditure of monies from the public conservation account for purposes listed under subsection G, paragraph 1 of this section shall be matched by an equal expenditure of monies from the conservation donation account or from other private or governmental sources.

E. If the legislature fails to appropriate monies to the public conservation account in a fiscal year, and if there are no other monies in the public conservation account, the Arizona state parks board may either grant nothing from the fund in that year or, on recommendation by the conservation acquisition board, may grant available monies in the conservation donation account for purposes authorized in subsection G of this section.

F. The monies in the fund are exempt from the provisions of section 35‑190 relating to lapsing of appropriations.

G. Monies in the public conservation account, with matching monies from the conservation donation account, are appropriated to the Arizona state parks board for the exclusive purpose of granting monies:

1. To the state or any of its political subdivisions, or to a nonprofit organization that is exempt from federal income taxation under section 501(c) of the internal revenue code and that has the purpose of preserving open space, for the following purposes only:

(a) To purchase or lease state trust lands that are classified as suitable for conservation purposes pursuant to title 37, chapter 2, article 4.2. A grant of money under this subdivision to a nonprofit organization is conditioned on the organization providing reasonable public access to any land that is wholly or partly purchased with that money. The organization shall agree with the Arizona state parks board that it will impose a restrictive covenant, running with the title to the land, granting such access and providing for reversion to this state of any interest in the property acquired with money granted under this subdivision on the failure to comply with the terms of the covenant. The Arizona state parks board and the state land commissioner have standing to either enforce the covenant or recover the amount of the grant from the current owner, with interest from the date the grant was awarded to the nonprofit organization.

(b) To purchase the development rights of state trust lands throughout this state under the following conditions:

(i) The development rights shall be sold at public auction as provided in section 37‑258.01.

(ii) The lessee of the state trust land at the time the development rights are purchased shall be notified of the purchase in writing.

(iii) The purchase of the development rights shall not result in cancellation or modification of the current lease.

(iv) The purchase of the development rights shall not affect the existing lessee's current economic use of the land and rights pursuant to title 37, chapter 2, article 4.2.

(v) As a condition of the sale of the development rights, the purchaser shall agree in perpetuity not to exercise the development rights and that the land shall remain as open space.

(vi) The state trust land shall retain any other rights and attributes as prescribed by law at the time of the purchase.

2. To an individual landowner or grazing or agricultural lessee of state or federal land who contracts with the Arizona state parks board to implement conservation based management alternatives using livestock or crop production practices, or reduce livestock or crop production, to provide wildlife habitat or other public benefits that preserve open space. The conservation acquisition board shall give priority under this paragraph to lessees of state or federal land who are required to reduce livestock production to provide public benefits, such as wildlife species conservation or wildlife habitat.

H. The Arizona state parks board shall not grant more than:

1. Ten per cent of the monies in the public conservation account for purposes of subsection G, paragraph 2 of this section in any fiscal year.

2. Fifty per cent of the monies under subsection G of this section with respect to land in one county in any fiscal year.

I. A grant of money under subsection G of this section is valid for eighteen months and may be extended one time for twelve additional months if a required public auction has not been held.

J. The Arizona state parks board may adopt rules to establish qualifications of nonprofit organizations for purposes of applying for and receiving money granted for purposes of subsection G of this section.

K. The owner of property that is wholly or partly acquired with money granted under subsection G, paragraph 1 of this section shall not restrict or unreasonably limit access to private lands. Any sale of land with money granted under subsection G of this section shall include a condition requiring that permanent access to private lands be allowed.

L. The Arizona state parks board shall administer the land conservation fund. On notice from the board, the state treasurer shall invest and divest monies in either account in the fund as provided by section 35-313, and monies earned from investments shall be credited to a separate administration account to pay the expenses of administering the land conservation and acquisition program under this section, which shall not exceed five per cent of the amount deposited in the public conservation account in any fiscal year or five hundred thousand dollars, whichever is less. Any unobligated amount remaining in the administration account at the end of the fiscal year shall be credited to the public conservation account for purposes of subsection D of this section. any remaining monies in the administration account may be used by the state parks board for park operations, subject to legislative appropriation.

M. Members of the conservation acquisition board may be reimbursed for travel and lodging expenses and per diem subsistence allowances incurred while on public business for the board. Reimbursement amounts shall not exceed those allowed under title 38, chapter 4, article 2.END_STATUTE

Sec. 41. Section 41-764, Arizona Revised Statutes, is amended to read:

START_STATUTE41-764. Contribution of pro rata share for personnel division fund

A. For the fiscal year beginning July 1, 1978, State service agencies within the covered service shall contribute a pro rata share of the overall cost of personnel administration services provided by the department. The pro rata share shall be payable by payroll fund source and the resultant amount shall be deposited, pursuant to sections 35-146 and 35-147, in a personnel division fund for appropriation by the legislature for the personnel division of the department. Beginning July 1, 1990 through June 30, 1992, the pro rata share shall be .70 per cent of the total payroll of the agency and shall increase by .05 per cent each fiscal year thereafter until January 1, 1997. Beginning January 1, 1997 through June 30, 1997, the pro rata share shall be .80 per cent of the total payroll of the agency. Beginning on July 1, 1997 through June 30, 2003, the pro rata share shall be 90 per cent of the total payroll of the agency. beginning on july 1, 2003, the pro rata share shall be 1.04 per cent of the total payroll of the agency. Total payroll shall include all fund sources including the state general fund, federal monies, special revenue funds, intergovernmental revenue monies, trust funds and other payroll fund sources.

B. A claim for the pro rata share percentage payment shall be submitted according to the fund source, with the accompanying payroll to the department for deposit in the personnel division fund.

C. Notwithstanding section 35-190, only monies in excess of five hundred thousand dollars revert to the state general fund at the end of each fiscal year. The state comptroller shall pay any monies determined to be owed to the federal government from the personnel division fund before calculating the reversion.END_STATUTE

Sec. 42. Section 41-803, Arizona Revised Statutes, is amended to read:

START_STATUTE41-803. Operation of state motor vehicle fleet; announcement; energy conservation; alternative and clean burning fuels; definitions

A. The director shall operate a motor vehicle fleet for all state owned motor vehicles for the purpose of providing transportation for state officers and employees, except those officers and employees of any agency or department excluded by subsection E of this section. The director shall make fleet motor vehicles available to state agencies and departments on the request of the chosen representative for that agency or department.

B. The director may adopt rules necessary for the administration of the motor vehicle fleet. State agencies and departments, including agencies and departments listed in subsection E of this section, may accept compensation for placing public service announcements on state owned motor vehicles, and monies received shall be deposited, pursuant to sections 35-146 and 35-147, in the state general fund. The agency or department director shall determine the appropriateness of the announcements, may exempt any vehicles that are not suitable for advertising and may contract with private parties for design and placement of the announcements.

C. The director shall provide for detailed cost, operation, maintenance, mileage and custody records for each state owned vehicle. On or before August 1 of each year, all state agencies and departments, including those listed in subsection E of this section, shall make information available to the director regarding vehicle cost, operation, maintenance and mileage and other information as established by the director in policies and procedures for the purposes of the report prescribed in subsection R of this section.

D. Each state department and agency shall pay from available monies the cost of motor vehicle services received from the state motor vehicle fleet at a rate determined by the director.

E. The following departments and agencies are excluded from participation in the state motor vehicle fleet:

1. Department of public safety.

2. Department of transportation.

3. Department of economic security.

4. State department of corrections.

5. Universities and community colleges.

6. Arizona state schools for the deaf and the blind.

7. Cotton research and protection council.

F. The director shall appoint a person in the office of the director who is the state motor vehicle fleet alternative fuel and clean burning fuel coordinator. The coordinator shall develop, implement, document, monitor and modify as necessary a statewide alternative fuels plan in consultation with all state agencies and departments that are subject to the alternative fuel and clean burning fuel requirements prescribed in this section or any other law. The approval of the coordinator is required for all acquisitions of vehicles pursuant to this section, except for acquisitions by community college districts.

G. Purchases of all new motor vehicles that primarily operate in counties with a population of more than two hundred fifty thousand persons and that have a gross vehicle weight of eight thousand five hundred pounds or less, including those agency motor vehicle fleets listed in subsection E of this section, shall meet the following minimum requirements for vehicles:

1. For model year 1997, ten per cent of new motor vehicles purchased shall be capable of operating on alternative fuels.

2. For model year 1998, fifteen per cent of new motor vehicles purchased shall be capable of operating on alternative fuels.

3. For model year 1999, twenty‑five per cent of new motor vehicles purchased shall be capable of operating on alternative fuels.

4. For model year 2000, fifty per cent of new motor vehicles purchased shall be capable of operating on alternative fuels.

5. For model year 2001 and all subsequent model years, seventy‑five per cent of new motor vehicles purchased shall be capable of operating on alternative fuels or clean burning fuels.

H. Purchases of new alternative fuel and clean burning fuel vehicles that have a gross vehicle weight of eight thousand five hundred pounds or less shall meet the following minimum requirements for vehicles that primarily operate in counties with a population of more than one million two hundred thousand persons:

1. For model year 2000, forty per cent of new alternative fuel and clean burning fuel vehicles purchased shall comply with the United States environmental protection agency standards for low emission vehicles pursuant to 40 Code of Federal Regulations section 88.104‑94 or 88.105‑94.

2. For model year 2001, fifty per cent of new alternative fuel and clean burning fuel vehicles purchased shall comply with the United States environmental protection agency standards for low emission vehicles pursuant to 40 Code of Federal Regulations section 88.104‑94 or 88.105‑94.

3. For model year 2002, sixty per cent of new alternative fuel and clean burning fuel vehicles purchased shall comply with the United States environmental protection agency standards for low emission vehicles pursuant to 40 Code of Federal Regulations section 88.104‑94 or 88.105‑94.

4. For model year 2003, seventy per cent of new alternative fuel and clean burning fuel vehicles purchased shall comply with the United States environmental protection agency standards for low emission vehicles pursuant to 40 Code of Federal Regulations section 88.104‑94 or 88.105‑94.

I. The coordinator may waive the requirements of subsection G of this section for any state agency on receipt of certification supported by evidence acceptable to the coordinator that:

1. The agency's vehicles will be operating primarily in an area in which neither the agency nor a supplier has established or can reasonably be expected to establish a central refueling station for alternative fuels or clean burning fuels.

2. The agency is unable to acquire or be provided equipment or refueling facilities necessary to operate vehicles using alternative fuels or clean burning fuels at a projected cost that is reasonably expected to result in net costs of no greater than thirty per cent more than the net costs associated with the continued use of traditional gasoline or diesel fuels measured over the expected useful life of the equipment or facilities supplied. Applications for waivers shall be filed with the department of environmental quality pursuant to section 49‑412. An entity that receives a waiver pursuant to this section shall retrofit fleet heavy‑duty diesel vehicles with a gross vehicle weight of eight thousand five hundred pounds or more that were manufactured in or before model year 1993 and that are the subject of the waiver with a technology that is effective at reducing particulate emissions at least twenty‑five per cent or more and that has been approved by the United States environmental protection agency pursuant to the urban bus engine retrofit/rebuild program. The entity shall comply with the implementation schedule pursuant to section 49‑555.

J. The department of administration, through the coordinator, may acquire or be provided equipment or refueling facilities necessary to operate such vehicles using alternative fuels or clean burning fuels:

1. By purchase or lease as authorized by law.

2. By gift or loan of the equipment or facilities.

3. By gift or loan of the equipment or facilities or any other arrangement pursuant to a service contract for the supply of alternative fuels or clean burning fuels.

K. The coordinator and the department of commerce energy office shall develop and implement a vehicle fleet energy conservation plan for the purposes of reducing vehicle fuel consumption and to encourage and progressively increase the use of alternative fuels and clean burning fuels in state owned vehicles. The plans shall include:

1. A timetable by which fleet vehicles shall be replaced with vehicles that have demonstrated high fuel economy estimates within their vehicle class.

2. A timetable for increasing the use of alternative fuels and clean burning fuels in fleet vehicles either through purchase or conversion. The timetable shall reflect the following schedule and percentage of vehicles which operate on alternative fuels or clean burning fuels:

(a) Not less than forty per cent of the total fleet by December 31, 1995, except for community college districts. Community college districts shall comply by December 31, 2002.

(b) Not less than ninety per cent of the total fleet operating primarily in counties with populations exceeding one million two hundred thousand persons according to the most recent federal decennial census by December 31, 1997, except for community college districts. Community college districts shall comply by December 31, 2004.

3. Options for increasing, whenever possible, the use of vehicles that have the capability to use available alternative fuels or clean burning fuels, or vehicles that may be economically converted, if needed, for the use of alternative fuels or clean burning fuels.

4. Options for the use of demonstrated innovative technologies that promote energy conservation and reduced fuel consumption.

5. Methods that promote efficient trip planning and state vehicle use.

6. Car pooling and van pooling for agency employees for commuting and job related travel.

L. The coordinator shall identify specific vehicle models within each vehicle class that would meet the demands of each state agency and that demonstrate a high degree of fuel economy. Vehicle classes and fuel economy comparisons shall be based on United States department of energy and United States environmental protection agency data pursuant to title 15 United States Code sections 2003 through 2006. For the use of an alcohol fueled vehicle, the state agency shall demonstrate to the director that the fuel for the vehicle is available within a ten mile radius of the primary home base of that vehicle.

M. Subsections G, H, I, J, K, L, N, O and P of this section do not apply to the purchase or lease of the following:

1. A vehicle to be used primarily for criminal law enforcement.

2. A motorcycle.

3. An all‑terrain vehicle.

4. An ambulance.

5. A fire truck, a fire engine or any other fire suppression apparatus.

N. Any contract for conversion of vehicles to alternative fuels pursuant to this section shall be entered into by competitive sealed proposals pursuant to section 41‑2534.

O. If everything else is equal, when contracting for vehicles to satisfy the requirements prescribed in this section, preference shall be given to vehicles with the lowest emissions levels.

P. The departments and agencies excluded from participation in the state motor vehicle fleet pursuant to subsection E of this section shall develop and implement a program for alternative fuels and clean burning fuels and fuel economy for their motor vehicle fleets substantially similar to the standards set forth in this section, and the program shall be submitted to the coordinator for review.

Q. All agencies, including those listed in subsection E of this section, shall comply with the plan developed and implemented by the coordinator pursuant to subsection F of this section.

R. On or before November 1 of each year, the director shall submit a report to the governor, the speaker of the house of representatives, the president of the senate, the governor's office of strategic planning and budgeting and the joint legislative budget committee concerning the use of alternative fuels and clean burning fuels in the state motor vehicle fleet. The report shall include at least the following:

1. The number of state fleet vehicles.

2. The number of state fleet vehicles used primarily in Maricopa county.

3. The number of state fleet vehicles capable of using alternative fuels or clean burning fuels.

4. Progress on compliance with federal and state guidelines mandating the conversion of state fleet vehicles to alternatively fueled vehicles.

5. Alternative fuels and clean burning fuels usage data.

6. Information received from state agencies pursuant to subsection C of this section.

7. Information gathered from local offices of federal agencies regarding progress made toward implementing the federal mandates relating to the conversion of motor vehicle fleets to alternative fuels or clean burning fuels pursuant to subsection G of this section.

S. For the purposes of this section:

1. "Alternative fuels" has the same meaning prescribed in section 1‑215.

2. "Clean burning fuels" has the same meaning prescribed in section 1‑215.

3. "New motor vehicle" means an original equipment manufactured vehicle, a converted original equipment manufactured vehicle or an original equipment manufactured vehicle that will be converted.END_STATUTE

Sec. 43. Section 41-1514.02, Arizona Revised Statutes, is amended to read:

END_STATUTE41-1514.02. Environmental technology assistance; definitions

A. The department of commerce shall establish and conduct an environmental technology assistance program to promote business and economic development by recruiting and expanding companies that manufacture, produce or process solar and other renewable energy products or products from recycled materials under the conditions prescribed by this section. The department shall:

1. Assist qualified environmental technology manufacturers, producers or processors in locating or expanding facilities in this state.

2. Encourage the use of environmental technology products.

3. Encourage the development of an environmental technology industry in this state.

B. Until June 30, 1996, the department of commerce shall identify and certify to the department of revenue the names and relevant information relating to the facilities of qualified environmental technology manufacturers, producers and processors for purposes of available tax incentives. The department of commerce may revoke the certification for failure to qualify and comply with the terms and conditions prescribed by this section and shall immediately notify the department of revenue of a revocation. The department of revenue may also revoke the certification if it obtains information indicating a failure to qualify and comply. If the department of revenue proposes to revoke the certification of an environmental technology manufacturer, producer or processor, it shall afford that person the rights of appeal as provided in title 42, chapter 1, article 6. The department of commerce shall not certify any new qualified environmental technology manufacturers, producers or processors for the purposes of this section after June 30, 1996. To obtain and maintain certification, an environmental technology manufacturer, producer or processor must:

1. Apply to the department of commerce.

2. Submit and retain copies of all required information including information relating to the actual or projected number of employees at qualified environmental technology facilities in this state and the actual or projected annual capital investment in those facilities.

3. Allow such inspections and audits as are necessary to verify the accuracy of the submitted information.

4. Upon initial application, submit to the department of commerce the information required by section 49‑109, subsection B in the manner prescribed in section 49‑109, subsection C or the information required by section 49‑109, subsection G, as applicable. The department of commerce shall consider the information submitted pursuant to this paragraph in its determination of certification and may deny certification if after consultation with the department of environmental quality serious, substantial and continuing violations of federal or state environmental laws are found.

C. Within sixty days after receipt of a complete application and all information required, as prescribed by the department of commerce, the department of commerce shall grant or deny certification and give written notice by certified mail to the applicant. The applicant is certified as a qualified environmental technology manufacturer, producer or processor on the date the notice of certification is delivered to the applicant.

D. To qualify for assistance under this section, an environmental technology manufacturer, producer or processor must meet the following requirements:

1. A manufacturer, producer or processor that is certified not later than July 1, 1995 by the department of commerce pursuant to this section, shall not import hazardous waste, as defined in section 49-921 as of July 1, 1993, or special waste, as defined in section 49-851 as of July 1, 1993, into this state from another state or country. Any other manufacturer, producer or processor that is certified by the department of commerce pursuant to this section, after July 1, 1995, shall not as of the date of certification import hazardous waste, as defined in section 49-921, and as interpreted by federal and state regulations or special waste, as defined in section 49-851, into this state from another state or country. This paragraph does not apply to any environmental technology manufacturer, producer or processor, or facilities and their subsequent expansions and replacements that, as of July 1, 1993, hold a storage or treatment facility permit issued by the department of environmental quality pursuant to 40 Code of Federal Regulations section 270.10 or has obtained plan approval from the department of environmental quality pursuant to section 49-762, that specifically authorizes the acceptance of special waste, for an existing or proposed recycling operation, or import hazardous or special wastes for recycling purposes.

2. The manufacturer, producer or processor shall locate or make an additional capital investment in a facility in this state that:

(a) Is either owned by the a qualified environmental technology manufacturer, producer or processor, or leased by the a qualified environmental technology manufacturer, producer or processor for a term of five or more years.

(b) Is used predominantly to do any of the following:

(i) Sort, store, prepare, convert, fabricate, manufacture or otherwise process finished products consisting of at least ninety per cent recycled materials.

(ii) Prepare, fabricate, manufacture or otherwise process finished products that are powered exclusively with solar or other specific renewable energy.

(iii) Prepare, fabricate, manufacture or otherwise process raw material or intermediate product exclusively through a hydrometallurgical process where at least eighty-five per cent of the process solution used to produce the finished product is recycled on site for additional production.

(iv) Fabricate or manufacture finished paper products that consist of at least eighty per cent recycled material.

(c) Costs, or is expected to cost, an aggregate of at least twenty million dollars of new capital investment in this state within five years after construction begins or commencement of installation of improvements.

E. Certification and qualification by an environmental technology manufacturer, producer or processor for purposes of this section does not constitute compliance with any provision of title 49 or any rule, order, procedure, permit or other regulatory measure required pursuant to title 49. An environmental technology manufacturer, producer or processor shall comply with all applicable environmental requirements of the department of environmental quality separately and independently from qualifying for assistance under this section. For purposes of complying with title 49, all definitions in that title and those adopted in rules pursuant to that title shall be applicable.

F. To qualify for tax incentives the taxpayer shall:

1. Agree with the department of commerce in writing to furnish information relating to the amount of tax benefits the taxpayer receives each year. If the taxpayer fails to provide the required information, the department of commerce shall immediately revoke the taxpayer's qualification and notify the department of revenue.

2. Enter into a memorandum of understanding with this state through the department of commerce containing employment goals. Each year the taxpayer shall report in writing to the department of commerce its performance in achieving the goals. The memorandum shall contain provisions that allow:

(a) The department of commerce to stop, readjust or recapture all or part of the tax incentives provided to the taxpayer on noncompliance with the terms of the memorandum.

(b) The department of commerce to notify the department of revenue of the conditions of noncompliance.

(c) The department of revenue to require the taxpayer to file appropriate amended tax returns reflecting the recapture of the tax incentives.

G. A manufacturer, producer or processor who is certified by the department of commerce to qualify for assistance under this section shall not have the certification revoked and shall not be disqualified because of the adoption after certification of a rule or a federal regulation relating to the requirements under subsection D of this section.

H. Retroactive to July 1, 1996, the certification of a qualified environmental technology manufacturer, producer or processor may be assigned or transferred to one or more successor taxpayers, manufacturers, producers or processors that have acquired and continue to operate a facility that was used to meet the qualifications prescribed in subsection D of this section and that continues to be used predominantly for the purposes prescribed in subsection D, paragraph 2, subdivision (b) of this section.

H. I. For purposes of this section:

1. "Environmental technology" means solar and other renewable energy products or recycled materials.

2. "Facility" includes a single facility, a combination of facilities, land, improvements, building improvements, real and personal property used for environmental protection facilities as defined in section 42‑14154, property used to generate on-site power or energy and machinery and equipment.

3. "Finished paper product" means a paper item or commodity or one of its components, including newsprint, paper napkins, paper towels, corrugated paper and related cellulosic products, that contains not more than ten per cent noncellulosic material such as laminates, binders or saturants, that has economic value to a consumer or purchaser and that is ready to be used with or without further altering its form.

4. "Finished product" means a marketable product or component of a product that has economic value to a consumer or purchaser and that is ready to be used with or without further altering its form.

5. "Hydrometallurgical processing" includes facilities used exclusively for solvent extraction electrowinning, hydrometallurgical recovery, precipitation and refining, but does not include smelters, open pit and underground mines, and concentrator processes.

6. "Machinery and equipment" means machinery and equipment that are directly or indirectly used to do any of the following:

(a) Sort, store, prepare, convert, fabricate, manufacture or otherwise process finished products consisting of at least ninety per cent recycled materials, including all machinery and equipment designed and used for environmental protection on site as well as all machinery and equipment used to generate power or energy for use on site.

(b) Prepare, fabricate, manufacture or otherwise process finished products that are powered exclusively with solar or other specific renewable energy.

(c) Prepare, fabricate, manufacture or otherwise process raw material or intermediate product exclusively through a hydrometallurgical process where at least eighty-five per cent of the process solution used to produce the finished product is recycled on site for additional production.

(d) Fabricate or manufacture finished paper products that consist of at least eighty per cent recycled materials, including all machinery and equipment that is designed and used for environmental protection on site and machinery and equipment that is used to generate power or energy for use on site.

7. "Process solution" means solution that is required throughout the hydrometallurgical process and from which the finished product is extracted.

8. "Qualified environmental technology manufacturer, producer or processor" or "qualified environmental technology facility" means an entity that for purposes of titles 42 and 43 meets the qualifications prescribed in subsection D of this section and is certified by the department of commerce pursuant to subsection B of this section.

9. "Recycled materials" means materials that have been separated, recovered or diverted from the solid waste stream and processed and returned to the economic stream in the form of raw materials or finished products. Recycled materials include work in process by the environmental technology manufacturing, producing or processing company that is composed of at least ninety per cent recycled materials and that will be further processed into a finished product.

10. "Renewable energy" means energy that is supplied from sources that are continually replenished from the sun, the earth or the waste stream, including hydroelectric, solar-thermal, photovoltaic, biomass, wind and geothermal processes.

11. "Solid waste" means any garbage, trash, rubbish, refuse, sludge from a waste treatment plant, water supply treatment plant or pollution control facility and other discarded material, including solid, liquid, semisolid or contained gaseous material resulting from industrial, agricultural, silvicultural and commercial operations and from community activities, but not including domestic sewage or hazardous waste unless such waste is received by an environmental technology manufacturer, producer or processor that holds a storage facility permit issued by the department of environmental quality pursuant to 40 Code of Federal Regulations section 270.10 as of July 1, 1993. START_STATUTE

Sec. 44. Section 41-1544, Arizona Revised Statutes, is amended to read:

START_STATUTE41-1544. Arizona job training fund; definitions

A. The Arizona job training fund is established consisting of legislative appropriations, monies deposited pursuant to section 23‑769, gifts, grants and other monies. The department shall administer the fund. On notice from the department, the state treasurer shall invest and divest monies in the fund as provided by section 35‑313, and monies earned from investment shall be credited to the fund. before any monies are disbursed pursuant to this section, the legislature may appropriate monies in the Arizona job training fund to be used for the department of economic security’s jobs program to provide job training for welfare clients.

B. The director may accept and expend federal monies and private grants, gifts and contributions to assist in carrying out the purposes of this article. All monies for the program shall be expended only for the costs related to training, except that the department of commerce shall reimburse the department of economic security for the development costs for establishing a system to collect the job training employer tax imposed pursuant to section 23‑769 in an amount of not more than four hundred thousand dollars and for incremental costs incurred by the department of economic security relating to the collection of the job training employer tax imposed pursuant to section 23‑769. Monies in the Arizona job training fund are exempt from the provisions of section 35‑190 relating to lapsing of appropriations.

C. The Arizona job training fund monies shall be spent on approval of the department at the direction of the director in accordance with the guidelines and procedures adopted by the governor's council on workforce policy.

D. A minimum of twenty‑five per cent of the monies appropriated to the Arizona job training fund shall be used to provide training to small businesses employing fewer than one hundred employees, until June 15 of each fiscal year. After June 15 of each fiscal year, any unexpended monies may be made available to any qualified applicant.

E. A minimum of twenty‑five per cent of the monies appropriated to the Arizona job training fund shall be used to provide training to businesses located in rural areas of the state, until June 15 of each fiscal year. After June 15 of each fiscal year, any unexpended monies may be made available to any qualified applicant.

F. If a business receives monies for training from the Arizona job training fund and the business employs fewer than one hundred employees and is located in a rural area of this state, the business shall be included in the minimum percentages prescribed in subsections D and E of this section.

G. No more than fifty per cent of the monies in the Arizona job training fund shall be used to provide incumbent worker training.

H. A single grant awarded pursuant to this article shall not be more than ten per cent of the estimated annual total of monies deposited in the Arizona job training fund.

I. For the purposes of this section:

1. "Rural area" means either:

(a) A county with a population of less than four hundred thousand persons according to the most recent United States decennial census.

(b) A census county division with less than fifty thousand persons in a county with a population of four hundred thousand or more persons according to the most recent United States decennial census.

2. "Small business" means a concern, including its affiliates that employs fewer than one hundred employees. END_STATUTE

Sec. 45. Section 41-1609.01, Arizona Revised Statutes, is amended to read:

START_STATUTE41-1609.01. Adult incarceration contracts; criteria

A. On publication, any request for proposals shall be provided to the joint legislative budget committee for its review.

B. To be considered for an award of a contract, the proposer must demonstrate that it has:

1. The qualifications, operations and management experience and experienced personnel necessary to carry out the terms of the contract.

2. The ability to comply with applicable correctional standards and any specific court order, if required.

3. A demonstrated history of successful operation and management of other secure facilities.

C. The proposer of a contract for correctional services must agree that this state may cancel the contract at any time after the first year of operation, without penalty to this state, on giving ninety days' written notice.

D. A contract may provide for annual contract price or cost adjustments, except that any adjustments may be made only once each year effective on the anniversary of the effective date of the contract. If any adjustment is made pursuant to the terms of the contract, it shall be applied to the total payments made to the contractor for the previous contract year and shall not exceed the per cent 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 next previous calendar year.

E. Any price or cost adjustments to a contract different than those authorized in subsection D of this section may be made only if the legislature specifically authorizes the adjustments and appropriates monies for that purpose, if required.

F. An award of a contract shall not be made unless an acceptable proposal is received pursuant to any request for proposals. For the purposes of this subsection, "acceptable proposal" means a proposal which substantially meets all of the requirements or conditions set forth in this section and which meets all of the requirements in the request for proposals.

G. A proposal shall not be accepted unless the proposal offers cost savings to this state. Cost savings shall be determined based upon the standard cost comparison model for privatization established by the director and the governor's office for excellence in government.

H. A proposal shall not be accepted unless the proposal offers a level and quality of services that are at least functionally equal to those that would be provided by this state.

I. Notwithstanding section 41‑2546, a contract to provide correctional services as described in this section may be for an initial period of not more than ten years.

J. The initial contract may include an option to renew for two subsequent renewal periods of not more than five years each.

K. The performance of the contractor shall be compared to the performance of this state in operating similar facilities, as provided in this section. The department shall conduct a biennial comparison of the services provided by the vendor for the purpose of comparing private versus public provision of services. The comparison of services shall be based on professional correctional standards specified by the director and incorporated into the contract and shall be used for the purpose of determining if the contractor is providing at least the same quality of services as this state at a lower cost or if the contractor is providing services superior in quality to those provided by this state at essentially the same cost. In conducting the comparison of services the director shall consider:

1. Security.

2. Inmate management and control.

3. Inmate programs and services.

4. Facility safety and sanitation.

5. Administration.

6. Food service.

7. Personnel practices and training.

8. Inmate health services.

9. Inmate discipline.

10. Other matters relating to services as determined by the director.

L. The director of the state department of corrections and the governor's office for excellence in government shall conduct a cost comparison of executed privatization contracts once every five years for each contract.

M. The director of the state department of corrections shall provide the most recent service comparison and cost comparison for contractors who exclusively contract with the department to the joint legislative budget committee for its review.

N. A contract for correctional services described in this section shall not be entered into unless the following requirements are met:

1. The contractor provides audited financial statements for the previous five years, or for each of the years the contractor has been in operation, if fewer than five years, and provides other financial information as requested.

2. The contractor provides an adequate plan of insurance, specifically including coverage or insurance for civil rights claims and liabilities as approved by the risk management division of the department of administration.

3. The contractor agrees to be liable for the costs of any emergency, public safety or security services provided to the contractor by the state or any political subdivision of the state and to reimburse the state or any political subdivision of the state for the cost of any such services.

O. The sovereign immunity of this state does not apply to the contractor. Neither the contractor nor the insurer of the contractor may plead the defense of sovereign immunity in any action arising out of the performance of the contract.

P. A contract for correctional services shall not authorize, allow or imply a delegation of authority or responsibility to a prison contractor for any of the following:

1. Developing and implementing procedures for calculating inmate release dates.

2. Developing and implementing procedures for calculating and awarding sentence credits.

3. Approving the type of work inmates may perform and the wages or sentence credits which may be given to inmates engaging in the work.

4. Granting, denying or revoking sentence credits, placing an inmate under less restrictive custody or more restrictive custody or taking any disciplinary actions.END_STATUTE

Sec. 46. Section 41-1712, Arizona Revised Statutes, is amended to read:

START_STATUTE41-1712. Organization of department; divisions; sections; other divisions

A. The department shall consist of the following divisions:

1. Arizona highway patrol.

2. Narcotics enforcement and criminal investigation.

3. Scientific criminal analysis.

4. Training and education.

5. Liquor control.

B. The department may establish district headquarters and stations at various places in the state, using existing facilities wherever possible, with the personnel and equipment necessary for the proper functioning and operation thereof of the headquarters and stations.

C. The director may establish other divisions or reserves or reorganize or consolidate the department. END_STATUTE

Sec. 47. Repeal

Sections 41-1791, 41-1792 and 41-1793, Arizona Revised Statutes, are repealed.

Sec. 48. Section 41-1794, Arizona Revised Statutes, is amended to read:

START_STATUTE41-1794. Additional responsibilities of director; alcohol‑related offenses; annual report

A. The director shall take such steps as are necessary to maintain effective liaison with the department of liquor licenses and control and all local law enforcement agencies in the enforcement of the laws of this state including enforcement against regarding the consumption of spirituous liquor by persons under the age of twenty-one years.

B. All local law enforcement agencies and the department shall forward all investigative reports of licensee violations of title 4 or department of liquor licenses and control rules and regulations to the department of liquor licenses and control.

C. The director shall submit by September 30 of each year an annual report to the governor, the speaker of the house of representatives and the president of the senate detailing liaison actions taken by the department during the previous fiscal year to enforce the regarding the liquor laws of this state including liaison actions taken against the consumption of spirituous liquor by persons under twenty-one years of age. END_STATUTE

Sec. 49. Section 41-2141, Arizona Revised Statutes, is amended to read:

START_STATUTE41-2141. Department of building and fire safety; establishment; purposes; components

A. The department of building and fire safety is established to further the public interest of safety and welfare by maintaining and enforcing standards of quality and safety for manufactured homes, mobile homes, and factory-built buildings and recreational vehicles and by reducing hazards to life and property through the maintenance and enforcement of the state fire code. It is also the purpose of the department to establish a procedure to protect the consumer of such products and services.

B. The department of building and fire safety consists of the board of manufactured housing, the installation standards committee, the state fire safety committee and the director of the department. The director's office consists of the office of manufactured housing, the office of state fire marshal and the office of administration.

C. The attorney general shall act for the department in all legal actions or proceedings and shall advise the department on all questions of law arising out of the administration of this chapter. END_STATUTE

Sec. 50. Section 41-2142, Arizona Revised Statutes, is amended to read:

START_STATUTE41-2142. Definitions

In this chapter, unless the context otherwise requires:

1. "Accessory structure" means the installation, assembly, connection or construction of any one-story habitable room, storage room, patio, porch, garage, carport, awning, skirting, retaining wall, evaporative cooler, refrigeration air conditioning system, solar system or wood decking attached to a new or used manufactured home, mobile home or residential single family factory-built building.

2. "Act" means the national manufactured home construction and safety standards act of 1974 and title VI of the housing and community development act of 1974 (P.L. 93-383, as amended by P.L. 95-128, 95-557, 96-153 and 96‑339).

3. "Alteration of units" means the replacement, addition, modification or removal of any equipment or installation after the sale by a manufacturer to a dealer or distributor but prior to the sale by a dealer to a purchaser, which may affect compliance with the standards, construction, fire safety, occupancy, plumbing or heat-producing or electrical system. Alteration does not mean the repair or replacement of a component or appliance requiring plug-in to an electrical receptacle if the replaced item is of the same configuration and rating as the component or appliance being repaired or replaced. Alteration also does not mean the addition of an appliance requiring plug-in to an electrical receptacle if such appliance is not provided with the unit by the manufacturer and the rating of the appliance does not exceed the rating of the receptacle to which such appliance is connected.

4. "Board" means the board of manufactured housing.

5. "Broker" means any person who, on behalf of another, sells, exchanges, buys, offers or attempts to negotiate or acts as an agent for the sale or exchange of a used manufactured home or mobile home except as exempted in section 41‑2178.

6. "Component" means any part, material or appliance which is built‑in as an integral part of the unit during the manufacturing process.

7. "Consumer" means either a purchaser or seller of a unit regulated by this chapter who utilizes the services of a person licensed by the department.

8. "Consummation of sale" means that a purchaser has received all goods and services that the dealer or broker agreed to provide at the time the contract was entered into or the transfer of title. Consummation of sale does not include warranties.

9. "Dealer" means any person who sells, exchanges, buys, offers or attempts to negotiate or acts as an agent for the sale or exchange of recreational vehicles, factory-built buildings, subassemblies, manufactured homes or mobile homes except as exempted in section 41‑2178. A lease or rental agreement by which the user acquired ownership of the unit with or without additional remuneration is considered a sale under the provisions of this chapter.

10. "Defect" means any defect in the performance, construction, components or material of a unit that renders the unit or any part of the unit unfit for the ordinary use for which it was intended.

11. "Department" means the department of building and fire safety.

12. "Director" means the director of the department.

13. "Earnest monies" means all monies given by a purchaser or a financial institution to a dealer or broker before consummation of the sale.

14. "Factory-built building" means a residential or nonresidential building including a dwelling unit or habitable room thereof which is either wholly or in substantial part manufactured at an off‑site location to be assembled on‑site, except that it does not include a manufactured home, recreational vehicle or mobile home as defined in this section.

15. "HUD" means the United States department of housing and urban development.

16. "Imminent safety hazard" means an imminent and unreasonable risk of death or severe personal injury.

17. "Insignia of approval" means a numbered or serialized label or seal issued by the assistant director of the office of administration as certification of compliance with the provisions of this chapter.

18. "Installation" means:

(a) Connecting new or used mobile homes, manufactured homes or factory-built buildings to on-site utility terminals or repairing these utility connections.

(b) Placing new or used mobile homes, manufactured homes, accessory structures or factory-built buildings on foundation systems or repairing these foundation systems.

19. "Installation supervision" means that the installer may act as an installer of accessory structures for manufactured homes, mobile homes or residential single family factory-built buildings and may also contract with the purchaser or owner of a unit, or a dealer licensed under this chapter, to arrange for, control and supervise all aspects of the installation of a unit and accessory structures, including retaining and supervising persons whose activities are licensed under this chapter. A licensed installer may not contract with the purchaser or owner of a unit or with a dealer licensed under this chapter, to arrange for, retain and supervise a person who is licensed or regulated by an agency other than the office of manufactured housing, unless the licensed installer is also licensed by the same agency which licenses or regulates the person whom the installer retains and supervises. Installation supervision also includes the installer's right, if authorized by the purchaser, owner or dealer, to seek and obtain recourse, remedies or relief against all persons whose activities are supervised. If requested by a licensed installer or an applicant for an installer's license, and approved by the assistant director pursuant to sections 41‑2175 and 41‑2176, an installer may obtain a license that includes installation supervision.

20. "Installer" means any person who engages in the business of performing installations of manufactured homes, mobile homes or residential single family factory-built buildings.

21. "Installer of accessory structures" means any person who engages in the business of installing accessory structures.

22. "Listing agreement" means a document which contains the name and address of the seller, a description of the unit to be listed and the terms which include the period of time that the agreement is in force, the price the seller is requesting for the unit, the commission to be paid to the licensee and the signatures of the sellers and the licensee who obtains the listing.

23. "Local enforcement agency" means a zoning or building department of a city, town or county or its agents.

24. "Manufactured home" means a structure built in accordance with the act.

25. "Manufacturer" means any person engaged in manufacturing, assembling or reconstructing any unit regulated by this chapter.

26. "Mobile home" means a structure built prior to June 15, 1976, on a permanent chassis, capable of being transported in one or more sections and designed to be used with or without a permanent foundation as a dwelling when connected to on-site utilities except recreational vehicles and factory-built buildings.

27. "Purchaser" means a person purchasing a unit in good faith from a licensed dealer or broker for purposes other than resale.

28. "Qualifying party" means a person who is an owner, employee, corporate officer or partner of the licensed business and who has active and direct supervision of and responsibility for all operations of that licensed business.

29. "Reconstruction of a unit" means construction work performed for the purpose of restoration or modification of a unit by changing or adding structural components, or electrical, plumbing or heat or air producing systems.

30. "Recreational vehicle" means a vehicular type unit which is:

(a) A portable camping trailer mounted on wheels and constructed with collapsible partial sidewalls which fold for towing by another vehicle and unfold for camping.

(b) A motor home designed to provide temporary living quarters for recreational, camping or travel use and built on or permanently attached to a self-propelled motor vehicle chassis or on a chassis cab or van that is an integral part of the completed vehicle.

(c) A park trailer built on a single chassis, mounted on wheels and designed to be connected to utilities necessary for operation of installed fixtures and appliances and has a gross trailer area of not less than three hundred twenty square feet and not more than four hundred square feet when it is set up, except that it does not include fifth wheel trailers.

(d) A travel trailer mounted on wheels, designed to provide temporary living quarters for recreational, camping or travel use, of a size or weight that may or may not require special highway movement permits when towed by a motorized vehicle and has a trailer area of less than three hundred twenty square feet. This subdivision includes fifth wheel trailers. If a unit requires a size or weight permit, it shall be manufactured to the standards for park trailers in A 119.5 of the American national standards institute code.

(e) A portable truck camper constructed to provide temporary living quarters for recreational, travel or camping use and consisting of a roof, floor and sides designed to be loaded onto and unloaded from the bed of a pickup truck.

31. "Salesperson" means any person who, for a salary, commission or compensation of any kind, is employed by or acts on behalf of any dealer or broker of manufactured homes, mobile homes or factory-built buildings to sell, exchange, buy, offer or attempt to negotiate or act as an agent for the sale or exchange of an interest in a manufactured home, mobile home or factory-built building.

32. "Seller" means a natural person who enters into a listing agreement with a licensed dealer or broker for the purpose of resale.

33. "Site development" means the development of an area for the installation of the unit's or units' locations, parking, surface drainage, driveways, on-site utility terminals and property lines at a proposed construction site or area.

34. "Statutory agent" means an adult person who has been a bona fide resident of this state for at least three years and has agreed to act as agent for a licensee.

35. "Subassembly" means a prefabricated wall, floor, ceiling, roof or similar combination of components.

36. "Title transfer" means a true copy of the application for title transfer which is stamped or validated by the appropriate government agency.

37. "Unit" means a manufactured home, mobile home, recreational vehicle, factory-built building, subassembly or accessory structures.

38. "Unit safety" means the performance of a unit in such a manner that the public is protected against any unreasonable risk of the occurrence of accidents due to the design or construction of such unit, or any unreasonable risk of death or injury to the user or to the public if such accidents occur.

39. "Used unit" means any unit which is regulated by this chapter and which has been sold, bargained, exchanged or given away from a purchaser who first acquired the unit which was titled in the name of such purchaser.

40. "Workmanship" means a minimum standard of construction or installation reflecting a journeyman quality of the work of the various trades. END_STATUTE

Sec. 51. Section 41-2144, Arizona Revised Statutes, is amended to read:

START_STATUTE41-2144. Powers and duties of board

A. The board shall:

1. Adopt rules imposing minimum construction requirements for factory‑built buildings, subassemblies and components thereof which shall be reasonably consistent with nationally recognized and accepted publications or generally accepted manufacturing practices pertinent to the construction and safety standards for such item to be manufactured. Such standards shall include minimum requirements for the safety and welfare of the public.

2. Adopt rules imposing requirements for body and frame design and construction and installation of plumbing, heating and electrical systems for manufactured homes which are consistent with the rules and regulations for construction and safety standards adopted by the United States department of housing and urban development.

3. Adopt rules imposing minimum construction requirements for recreational vehicles which shall be reasonably consistent with nationally recognized and accepted publications for such item to be manufactured. Such standards shall include minimum requirements for the safety and welfare of the public.

4. 3. Adopt rules relating to plan approvals as to requirements for the design, construction, alteration, reconstruction and installation of units or accessory structures as deemed necessary by the board to carry out the provisions of this chapter.

5. 4. Establish a schedule of fees, payable by persons, licensees or owners of units regulated by this chapter, for inspections, licenses, permits, plan reviews, administrative functions and insignia so that the total annual income derived from such fees will not be less than ninety‑five per cent and not more than one hundred five per cent of the anticipated expenditures for the operation of the office of manufactured housing.

6. 5. Adopt rules relating to the inspection throughout the state by the assistant director of the office of manufactured housing of the installation of manufactured homes, mobile homes, factory-built buildings and accessory structures included as part of a sales contract for a new or used mobile or manufactured home or part of an agreement to move a new or used mobile or manufactured home.

7. 6. Establish and maintain licensing standards and bonding requirements for all manufacturers of manufactured homes, recreational vehicles, factory‑built buildings and subassemblies regulated pursuant to this chapter.

8. 7. Establish and maintain licensing standards and bonding requirements for all dealers and brokers of manufactured homes, mobile homes, recreational vehicles, factory-built buildings and subassemblies thereof who sell or arrange the sale of such products within this state.

9. 8. Establish and maintain licensing standards and bonding requirements for all installers of manufactured homes, mobile homes and accessory structures and certified standards for all persons who repair these homes and structures under warranties and who are not employees of the manufacturer.

10. 9. Establish and maintain licensing standards for all salespersons of manufactured homes, mobile homes and factory-built buildings. These standards shall not include educational requirements.

11. 10. Adopt rules consistent with the United States department of housing and urban development procedural and enforcement regulations and enter into such contracts necessary to administer the federal manufactured home regulations.

12. 11. Adopt rules imposing minimum fire and life safety requirements in the categories of fire detection equipment, flame spread for gas furnace and water heater compartments, egress windows, electrical system and gas system for mobile homes entering this state.

13. 12. Adopt rules for inspections and permits for minimum fire and life safety requirements and establish fees for such inspections and permits for mobile homes entering this state.

14. 13. Adopt such other rules as the board deems necessary for the director to carry out the provisions of this chapter and, to the extent not authorized by other provisions of this section, adopt rules as necessary to interpret, clarify, administer or enforce the provisions of this article and articles 2 and 4 of this chapter.

15. 14. Adopt rules relating to the installation of manufactured homes, mobile homes, factory‑built buildings and accessory structures included as part of a sales contract for a new or used mobile or manufactured home or part of an agreement to move a new or used mobile or manufactured home. This paragraph does not apply to:

(a) Single wide factory-built buildings that are used for construction project office purposes and that are not used by the public.

(b) Storage buildings of less than one hundred sixty‑eight square feet that are not used by the public.

16. 15. Adopt rules relating to acceptable workmanship standards.

17. 16. Adopt rules relating to issuing permits to licensees, owners of units or other persons for the installation of manufactured homes, mobile homes, factory‑built buildings and accessory structures.

18. 17. Adopt rules including a requirement that a permit shall be obtained before the installation of a mobile or manufactured home.

B. In adopting rules pursuant to subsection A, paragraph 4 3, the board shall consider for adoption any amendments to the codes and standards referred to in subsection A, paragraphs 1, and 2 and 3. If the board adopts the amendments to such codes and standards, the director shall notify the manufacturers licensed pursuant to article 4 of this chapter ninety or more days prior to the effective date of such amendments.

C. Chapter 6 of this title does not apply to the setting of fees under subsection A, paragraph 5 4.

D. Rules adopted pursuant to subsection A, paragraph 15 14 shall be standard throughout this state and may be enforced by the local enforcement agencies upon installation to ensure a standard of safety. The board may make an exception to the standard if, on petition by a local jurisdiction participating in the installation inspection program, local conditions justify the exemption or it is necessary to protect the health and safety of the public. On its own motion, the board may revise or repeal any exception. END_STATUTE

Sec. 52. Section 41-2151, Arizona Revised Statutes, is amended to read:

START_STATUTE41-2151. Office of manufactured housing; purpose

The purpose of the office of manufactured housing within the department is to maintain standards of quality and safety for manufactured homes, factory-built buildings, mobile homes, recreational vehicles, and accessory structures and installation of manufactured and mobile homes, factory‑built buildings and accessory structures. The affairs of the office of manufactured housing shall be conducted consistently with minimum standards of the United States department of housing and urban development so as to be designated the "state inspector" for manufactured homes and related industries. The office shall implement all existing laws and regulations mandated by the federal government, its agencies and this state for such purposes. END_STATUTE

Sec. 53. Section 41-2154, Arizona Revised Statutes, is amended to read:

START_STATUTE41-2154. Submission of construction, reconstruction or alteration plans by manufacturers; approval; revocation

A. Prior to the construction of any new model of recreational vehicle, factory-built building or subassembly, each manufacturer who intends to manufacture for delivery or sell such unit in this state shall submit to the director for approval detailed plans of each model and shall have obtained such approval.

B. Prior to reconstruction of any factory-built building, or recreational vehicle including those for which the director has not approved plans before construction, the licensee shall submit to the director for approval detailed plans of the factory-built building or recreational vehicle that indicate conformance with this state's adopted codes as certified by an engineer who is registered pursuant to title 32, chapter 1.

C. Prior to installation of a factory-built building or accessory structure, each licensee who intends to accomplish the construction shall submit to the director for approval detailed plans for each project and shall obtain the director's approval.

D. The office or a third party inspector who is authorized by the assistant director to verify compliance with the approved plans shall inspect the factory-built building or recreational vehicle.

E. A plan approval may be immediately suspended by the written notice of the assistant director if the assistant director has reasonable cause to believe that the licensee is not complying with the plan as approved or that the licensee has used inferior materials or workmanship in construction. This notice shall be served by personal service to an in‑state licensee and by certified mail to an out‑of‑state licensee. Service of process by certified mail is complete after forty-eight hours from the time of deposit in the mail. END_STATUTE

Sec. 54. Section 41-2155, Arizona Revised Statutes, is amended to read:

START_STATUTE41-2155. Preemption of local building codes; responsibility for maintenance of utility connections

A. No building code or local enforcement agency or its adopted building codes may require, as a condition of entry into or sale in any county or municipality, that any unit which has been certified pursuant to this article be subjected to any local enforcement inspection to determine compliance with any standard covering any aspect of the unit which is inspected pursuant to this article.

B. Except where a local enforcement agency participates in the office permit and insignia issuance program for the installation of manufactured homes, mobile homes, factory‑built buildings and accessory structures and inspection of such installations, no local enforcement agency shall subject any unit installed to any local inspections or charge a fee for any services provided pursuant to this article.

C. A local enforcement agency in any county or municipality shall recognize the minimum standards of the act as equal to any nationally accepted or locally adopted building code standard.

D. Nothing in subsection A, B or C of this section shall prevent the application of local codes and ordinances governing zoning requirements, fire zones, building setback, maximum area and fire separation requirements, site development and property line requirements and requirements for on‑site utility terminals for factory-built buildings, manufactured homes, and mobile homes and recreational vehicles.

E. Notwithstanding any other provision of this section, the owner of a manufactured home or mobile home located in a park subject to title 33, chapter 11 is responsible for the maintenance of utility connections from any outlets furnished by the landlord pursuant to section 33‑1434 to the unit, except that the landlord is responsible for the maintenance of connections for any distance greater than twenty‑five feet to the point at which the utility connections are the property of the providing utility company if the outlet is located outside the lot line of the owner's unit and is more than twenty‑five feet from the unit. A local enforcement agency that determines that local code requirements are not being met or that maintenance or safety activities are needed for utility connections may not require anyone except the responsible party to perform or pay for such activities. END_STATUTE

Sec. 55. Section 41-2178, Arizona Revised Statutes, is amended to read:

START_STATUTE41-2178. Exemptions

A. Any person engaged in installing manufactured homes, mobile homes or accessory structures and licensed in an appropriate category by the registrar of contractors pursuant to title 32, chapter 10, article 2 is exempt only from the licensing requirements of this article.

B. The requirements of this chapter applicable to dealers and brokers do not apply to persons performing the following transactions:

1. Real estate brokers and real estate salesmen licensed under section 32‑2122 who engage in activities proscribed by this chapter with respect to used manufactured homes, mobile homes, factory‑built buildings or subassemblies if the activity is incidental to the transfer of an interest in real property and the manufactured home, mobile home, factory-built building or subassembly is installed on the real property.

2. Receivers, trustees, administrators, executors, guardians or other persons appointed by or acting under the judgment of any court.

3. Public officers while performing their official duties.

4. Banks and other financial institutions, and their subsidiaries, and other corporations qualified to do business in this state, if they are proceeding as repossessors or liquidators, but only to the extent that they finance the sales transaction by which the repossessed property is liquidated or are a holder in due course with respect to the transaction.

5. A purchaser who sells no more than two recreational vehicles, factory-built buildings, subassemblies, manufactured homes or mobile homes in any twelve month period. END_STATUTE

Sec. 56. Section 41-2194, Arizona Revised Statutes, is amended to read:

START_STATUTE41-2194. Unlawful acts

It is unlawful for any person to:

1. Manufacture recreational vehicles, manufactured homes, factory‑built buildings or subassemblies in this state or for delivery or sale in this state unless such person is licensed as a manufacturer by the office.

2. Engage in the business of installing manufactured homes, mobile homes or accessory structures unless such person is licensed as an installer by the office.

3. Engage in the business of a salesperson of manufactured homes, mobile homes or factory-built buildings unless the person is licensed as a salesperson by the office.

4. Engage in the business of contracting to sell any new or used unit or subassemblies regulated by this article or otherwise act in the capacity of a dealer or broker unless such person is licensed as a dealer or broker by the office.

5. Make alterations to or reconstruct any manufactured homes, or factory‑built buildings or recreational vehicles unless such person is licensed or certified. END_STATUTE

Sec. 57. Section 41-2195, Arizona Revised Statutes, is amended to read:

START_STATUTE41-2195. Violation; classification; penalty

A. No person required to be licensed pursuant to this article may sell or offer to sell in this state any manufactured home, recreational vehicle, factory‑built building or subassembly unless the proper state insignia or HUD label is affixed to such unit.

B. No person required to be licensed pursuant to this article may manufacture for delivery, sell or offer to sell in this state any manufactured home, recreational vehicle, factory-built building or subassembly unless the unit and its components, systems and appliances have been constructed and assembled in accordance with the standards and rules adopted pursuant to this chapter.

C. A person shall not occupy or otherwise use a mobile home which has been brought into this state or move a mobile home from one mobile home park in this state to another mobile home park in this state unless it meets the standards adopted pursuant to this chapter and displays the proper state insignia. A mobile home that is rehabilitated in accordance with rehabilitation rules adopted by the department and receives an insignia of approval shall be deemed by a county or municipality to be acceptable for relocation into an existing mobile home park. This subsection does not apply to a person bringing a mobile home into this state as a tourist.

D. A person shall not advertise or offer for sale a mobile home which has been brought into this state unless it meets the standards adopted pursuant to this chapter and displays the proper state insignia.

E. No person may remove or cause to be removed an insignia of approval or a notice of violation without prior authorization of the office.

F. A person shall not occupy or use a mobile home in violation of an order to vacate issued pursuant to section 41‑2153, subsection B, paragraph 6.

G. Except as provided in subsection subsections I and J of this section, a person who violates any provision of this chapter, or any such rule or standard, is guilty of a class 2 misdemeanor.

H. The assistant director may, after notice and a hearing pursuant to the provisions of section 41-2181, subsection A, may deny the issuance of a license or revoke or suspend the license of, impose an administrative penalty on or place on probation any manufacturer, dealer, broker, salesperson or installer who has violated any provision of this chapter or any standards and rules issued adopted pursuant to this chapter.

I. Any manufacturer, dealer, broker, salesperson or installer who knowingly violates any provision of this chapter or the rules adopted pursuant to section 41‑2144, subsection A, paragraph 1, 2, 3, 10 9 or 11 10 or any person who knowingly provides false information to seek reimbursement of expenses under section 41‑2157 is guilty of a class 1 misdemeanor. Each violation of this chapter shall constitute a separate violation with respect to each failure or refusal to allow or perform an act required by this chapter, except that the maximum fine may not exceed one million dollars for any related series of violations occurring within one year from the date of the first violation.

J. An individual or a director, officer or agent of a corporation who knowingly violates the provisions of this chapter or the rules adopted pursuant to this chapter in a manner which threatens the health or safety of any purchaser is guilty of a class 1 misdemeanor.

K. A manufacturer, dealer, salesperson or broker shall not knowingly sell a unit regulated by this chapter to an unlicensed person for the purpose of resale, nor shall a dealer offer for sale or sell a new unit manufactured by an unlicensed person.

L. In addition to any other obligations imposed by law or contract during the term of a listing agreement, a licensee who has agreed to act as an agent to offer a manufactured home for sale shall promptly submit all offers to purchase the listed unit from any source to the client. The offers shall be in writing and signed and dated by the party making the offer and the client on receipt. A copy of the executed document shall be maintained as part of the record of sales.

M. No licensee, owner or other persons may manufacture, alter, reconstruct or install units regulated by this chapter, unless it is accomplished in a workmanlike manner in accordance with the rules adopted pursuant to this chapter and is suitable for the intended purpose. END_STATUTE

Sec. 58. Section 41-2773, Arizona Revised Statutes, is amended to read:

START_STATUTE41-2773. Powers and duties of the office of management and budget relating to competitive government

In addition to the duties assigned by the governor, the office:

1. Shall develop, implement and manage a statewide competitive government program.

2. Shall identify, with the assistance of state agencies, functions in state government appropriate for submittal to the competitive government process.

3. May require a state agency to conduct an in-house total cost estimate, a management study or any hearing, study, review or cost estimate concerning any aspect of a target function to determine the potential for privatization.

4. May require a state agency to release a request for proposal or invitation to bid for any target function the office deems appropriate for competitively contracting.

5. Shall develop minimum savings criteria for governing the award of contracts resulting from the competitive government process.

6. Shall instruct the governor's office for excellence in government, or its successor, to:

(a) 6. Shall develop a costing model that accurately estimates and accounts for the total cost of providing a state function and develop methods by which state in-house costs can be compared to private sector costs. The model shall:

(i) (a) Take into account relevant costs for determining whether savings would result from the privatization of a target function.

(ii) (b) Specifically account for conversion, transaction, disruption, contract monitoring costs, and revenue increases and decreases related to a privatization.

(iii) (c) Include uniform definitions of direct costs and indirect costs.

(b) 7. Shall develop a handbook and training program that educates state agencies in the competitive government process.

(c) 8. Shall preapprove requests for proposals and invitations to bid, as the office deems appropriate, that could result in the privatization or transfer to another state agency of a target function.END_STATUTE

Sec. 59. Section 41-3521, Arizona Revised Statutes, is amended to read:

START_STATUTE41-3521. Information technology authorization committee; members; terms; duties; compensation; definition

A. The information technology authorization committee is established consisting of the following fourteen fifteen members:

1. One member of the house of representatives who is appointed by the speaker of the house of representatives and who shall serve as an advisory member.

2. One member of the senate who is appointed by the president of the senate and who shall serve as an advisory member.

3. Four members from private industry who are appointed by the governor pursuant to section 38‑211 and who are knowledgeable in information technology.

4. One local government member and one federal government member who are appointed by the governor and who shall serve as advisory members.

5. Two members who are directors of state agencies and who are appointed by the governor.

6. The administrative director of the courts or the director's designee.

7. The director of the government information technology agency. The director shall be the chairperson of the committee but for all other purposes shall serve as an advisory member.

8. Two members from either private industry or state government who are appointed by the governor.

9. The staff director of the joint legislative budget committee, or the staff director's designee, who shall serve as an advisory member.

B. Committee members who are from private industry serve two year terms. The other members serve at the pleasure of their appointing officers.

C. For all budget units and the legislative and judicial branches of state government, the committee shall:

1. Review established statewide information technology standards and the statewide information technology plan.

2. Review the minimum qualifications established by the director for each position authorized for the agency.

3. Approve or disapprove all proposed information technology projects that exceed a total cost of one million dollars, excluding public monies from county, municipal and other political subdivision sources that are not deposited in a state fund. Beginning on June 1, 1998, As part of a budget request for an information technology project that has total costs of more than one million dollars, a budget unit and the legislative and judicial branches of state government shall indicate the status of review by the committee. Projects shall not be artificially divided to avoid review by the committee.

4. Develop a report format that incorporates the life cycle analysis prescribed by section 41‑2553 for use in submitting project requests to the committee.

5. Require expenditure and activity reports from a budget unit or the legislative or judicial branches of state government on implementing information technology projects approved by the committee.

6. Conduct periodic reviews on the progress of implementing information technology projects approved by the committee.

7. Monitor information technology projects that the committee considers to be major or critical.

8. Temporarily suspend the expenditure of monies if the committee determines that the information technology project is at risk of failing to achieve its intended results or does not comply with the requirements of this chapter.

9. Hear and decide appeals made by budget units regarding the agency's rejection of their proposed information technology plans or projects.

10. Report to the governor, the speaker of the house of representatives, the president of the senate, the secretary of state and the director of the Arizona state library, archives and public records at least annually on all matters concerning its objectives. This includes:

(a) Its review of the statewide information technology plan developed by the agency.

(b) The findings and conclusions of its periodic reviews.

11. Adopt rules it deems necessary or desirable to further the objectives and programs of the committee.

D. The committee shall meet at the call of the chairperson.

E. Members of the committee are not eligible to receive compensation but are eligible to receive reimbursement for expenses pursuant to title 38, chapter 4, article 2.

F. For the purposes of this section, "advisory member" means a member who gives advice to the other members of the committee at committee meetings but who is not eligible to vote and is not a member for purposes of determining whether a quorum is present.END_STATUTE

Sec. 60. Section 41-3956, Arizona Revised Statutes, is amended to read:

START_STATUTE41-3956. Housing development fund; purpose

A. The housing development fund is established for the purpose of implementing a housing demonstration program in areas in this state that contain state prison facilities. The fund consists of monies provided from the housing trust fund pursuant to section 44‑313, subsection A, paragraph 2 1. The department shall administer the fund.

B. The department shall allocate fund monies as loans or grants for the construction or renovation of facilities for housing pursuant to this section or for advancing down payments, closing costs or mortgage amount reductions.

C. A project is eligible to receive funding if the project is within a twenty mile radius of an existing or future prison site. The communities of Buckeye, Douglas, Florence, Safford, Winslow and Yuma and other communities that are selected as sites for future prison facilities are eligible to receive monies pursuant to this section.

D. The department shall give preference to projects with local government support and commitments, including local general funds, fee waivers, government sponsored infrastructure improvements and land donations, and to projects that provide housing and shelter to families and individuals who are employed by state prison facilities.

E. Monies in the fund shall be used to provide long‑term housing opportunities for low and moderate income households and for housing affordability for areas authorized under subsection C of this section.

F. Five hundred thousand dollars of the monies in the fund shall be used for housing in eligible areas. Other monies in the fund shall be used for any purpose provided by this section.

G. The director may issue loans from the fund to assist eligible communities in funding housing. The director may issue loans pursuant to the following terms and conditions:

1. The loans shall be made only for projects that meet the requirements of this section and that demonstrate financial viability.

2. The director may assess an administrative fee on each loan to cover the annual cost to this state of administering the loan program.

3. Each loan shall be evidenced by a contract or contracts between a political subdivision, a for profit or nonprofit housing developer and the director acting on behalf of the state or any combination of a political subdivision, a housing developer and the director. The contract shall provide for at least annual payments of principal and may provide for payment of administrative fees for the term of the loan.

4. Each contract shall provide that the attorney general may commence any action that is necessary to enforce the contract and to achieve the repayment of loans that are made pursuant to this section.

H. Loan payments and administrative fees received pursuant to subsection G of this section shall be deposited, pursuant to sections 35‑146 and 35‑147, in the housing development fund.

I. Monies in the fund may also be spent for grants or other purposes that meet the requirements that are imposed on the use of the monies.

J. The director shall report annually to the legislature on the status of the fund. The report shall include a summary of facilities for which funding was provided during the preceding fiscal year and shall show the cost and geographic location of each facility and the number of individuals who benefited from the construction or renovation of the facility. The report shall be submitted to the president of the senate and the speaker of the house of representatives no later than September 1 of each year.

K. Monies in the fund are continuously appropriated. On notice from the department, the state treasurer shall invest and divest monies in the fund as provided by section 35‑313, and monies earned from investment shall be credited to the fund. Monies in the fund are exempt from the provisions of section 35‑190 relating to lapsing of appropriations.

L. For any construction project financed by the department pursuant to this section, the department shall notify a city, town, county or tribal government that a project is planned for its jurisdiction and, before proceeding, shall seek comment from the governing body of the city, town, county or tribal government or an official authorized by the governing body of the city, town, county or tribal government. The department shall not interfere with or attempt to override the local jurisdiction's planning, zoning or land use regulations.END_STATUTE

Sec. 61. Section 42-5032, Arizona Revised Statutes, is amended to read:

START_STATUTE42-5032. Distribution of county bridge construction and county highway improvement revenues; definitions

A. Through June 30, 2010, If, by June 30, 1998, the department of transportation enters into an intergovernmental agreement pursuant to section 28‑401, subsection C or section 28‑7652, subsection A for the construction of a bridge, the state treasurer shall pay each month, beginning from and after June 30, 1998 through June 30, 2010, pursuant to section 42‑5029, subsection D, paragraph 4, one-twelfth of the amount determined under this subsection B of this section to a county that issues bonds pursuant to title 28, chapter 21, article 4 or enters into an intergovernmental agreement pursuant to section 28‑401, subsection C.

B. The amount to be paid under this subsection A of this section is the amount of state transaction privilege tax revenues received each calendar year, up to four hundred sixteen thousand six hundred sixty‑seven dollars, from taxpayers described in subsection C of this section.

B. If, by December 30, 2003, the department of transportation enters into an intergovernmental agreement pursuant to section 28-401, subsection D or section 28-7652, subsection B for the design, reconstruction and improvement of a county highway approaching and traversing a bridge financed pursuant to subsection A of this section, the state treasurer shall pay each month, beginning from and after June 30, 2006 through June 30, 2018, pursuant to section 42-5029, subsection D, paragraph 4, one-twelfth of the amount determined under this subsection to a county that issues bonds pursuant to title 28, chapter 21, article 4 or enters into an intergovernmental agreement pursuant to section 28-401, subsection D. The amount to be paid under this subsection is the amount of state transaction privilege tax revenues received each calendar year, up to four hundred sixteen thousand six hundred sixty‑seven dollars, from taxpayers described in subsection C of this section. if an owner of a sports entertainment facility described in this section voluntarily conveys a majority ownership INTEREST in the facility to another entity or owner on or before june 30, 2013, the county must reimburse the state general fund the amount paid to the county pursuant to this subsection through the date of the conveyance, either by withholding transaction PRIVILEGE tax revenues otherwise payable to the county under section 42-5029, subsection D or as otherwise provided by the intergovernmental AGREEMENT entered into pursuant to section 28-401, subsection d. The reimbursement of monies to the state general fund pursuant to this subsection does not affect the continuing payment of highway improvement revenues to the highway improvement interest fund or the redemption fund under section 28-7656, subsection b. For the purposes of this subsection, a conveyance occurs on the date a transfer of ownership or an option to acquire ownership becomes irrevocable.

C. This section applies with respect to transaction privilege tax revenues collected from all persons conducting business under any business classification under this article at a sports entertainment facility, destination resort or retail center that both complies with all of the following:

1. Produces a total of at least six hundred thousand dollars each year in transaction privilege tax revenues to this state pursuant to this article.

2. Will acquire direct county highway access either:

(a) Across a river by the bridge constructed.

(b) By way of the county highway being widened and improved.

3. Produces at least nine hundred thousand dollars in each of the years 2006 through 2010 in transaction privilege tax revenues to this state.

C. D. The department shall report the amount amounts under subsection subsections A and B of this section to the state treasurer on or before March 31 of each year for payment for the following fiscal year.

D. E. For purposes of this section:

1. "Destination resort" means a person engaged in businesses classified under both the transient lodging classification and the amusement classification that provides on-site recreational facilities such as a golf course, tennis courts or a riding stable.

2. "Retail center" means a complex consisting of at least two businesses classified under the retail classification.

3. "Sports entertainment facility" means a complex located on at least three hundred acres that requires a ticket for admission for viewing a sporting event.END_STATUTE

Sec. 62. Section 42-5252, Arizona Revised Statutes, is amended to read:

START_STATUTE42-5252. Levy of tax

A. A tax is levied on every provider in an amount as follows:

1. For the fiscal years beginning from and after June 30, 2001 and ending before July 1, 2006, thirty‑seven cents per month for each activated wire and wireless service account for the purpose of financing emergency telecommunication services.

2. For the fiscal years beginning from and after June 30, 2006 and ending before July 1, 2007 fiscal year 2006-2007, twenty‑eight cents per month for each activated wire and wireless service account for the purpose of financing emergency telecommunication services.

3. For the fiscal years beginning from and after June 30, 2007, twenty cents per month for each activated wire and wireless service account for the purpose of financing emergency telecommunication services.

4. One and one‑tenth 0.69 per cent of the provider's gross proceeds of sales or gross income derived from the business of providing exchange access services for the purpose of financing telecommunication devices for the deaf and the severely hearing and speech impaired under the program established pursuant to section 36‑1947.

5. 0.18 per cent of the provider's gross proceeds of sales or gross income derived from the business of providing exchange access services for the purpose of financing the ARizona poison control system. These monies shall be deposited in the poison control fund administered by the department of health services and are subject to legislative appropriation.

6. 0.23 per cent of the provider's gross proceeds of sales or gross income derived from the business of providing exchange access services for the purpose of financing the operating expenses of the ARizona state schools for the deaf and the blind pursuant to section 15-1306.

B. Each provider shall state on the invoice to customers a separate line item stating the amount of tax levied pursuant to subsection A of this section.

C. Unless the context otherwise requires, article 1 of this chapter governs the administration of the tax imposed under this section. END_STATUTE

Sec. 63. Section 43-401, Arizona Revised Statutes, is amended to read:

START_STATUTE43-401. Withholding tax; rates; election by employee

A. Every employer at the time of the payment of wages, salary, bonus or other emolument to any employee whose compensation is for services performed within this state shall deduct and retain therefrom from the compensation the greater of:

1. Notwithstanding section 43-403, subsection A, paragraphs 2, 3 and 4, five dollars per month or a proportionate rate for any shorter pay period.

2. An amount equal to a percentage, determined pursuant to subsection B of this section, of the total amount of the federal income tax deducted and withheld by an employer from the total value of such wages, bonus or other emolument of an employee under the provisions of the United States internal revenue code computed without deductions for any amount withheld.

B. The percentage deducted and retained under subsection A of this section shall be:

1. If the employee's annual compensation is less than fifteen thousand dollars, ten 10.0 per cent, eighteen 18.2 per cent, twenty-one 21.3 per cent, twenty-three 23.3 per cent, twenty-nine 29.4 per cent or thirty-four 34.4 per cent, at the employee's election pursuant to subsection E of this section.

2. If the employee's annual compensation is fifteen thousand dollars or more, eighteen 18.2 per cent, twenty-one 21.3 per cent, twenty-three 23.3 per cent, twenty-nine 29.4 per cent or thirty-four 34.4 per cent, at the employee's election pursuant to subsection E of this section.

3. Zero per cent at the election of an employee who had no state income tax liability in the prior taxable year and expects to have no state income tax liability for the current taxable year.

C. If the amount collected and payable by the employer to the department in each of the preceding four calendar quarters did not exceed an average of one thousand five hundred dollars, the amount collected shall be paid to the department on or before April 30, July 31, October 31 and January 31 for the preceding calendar quarter. If such amount exceeded one thousand five hundred dollars in each of the preceding four calendar quarters, the employer shall pay to the department the amount the employer deducts and retains pursuant to this section at the same time as the employer is required to make deposits of federal tax pursuant to section 6302 of the internal revenue code. On or before April 30, July 31, October 31 and January 31 each year the employer shall reconcile the amounts payable during the preceding calendar quarter in a manner prescribed by the department. For taxable years or reporting periods that begin from and after December 31, 1997, the department by rule may allow and determine which employers qualify for annual payments of withholding taxes, with an annual report by the employer pursuant to section 43-412, subsection B, if the qualifying employer has established sufficient payment history to indicate that the employer is current and in good standing pursuant to standards established by rule. For any business which has not had a withholding certificate for the four preceding consecutive quarters, the quarterly average shall be computed in a manner prescribed by the department.

D. If an employer fails to make a timely monthly payment because prior to that reporting period it reported on a quarterly basis instead of on a monthly basis, the department shall notify the employer that it is out of compliance with this section. Notwithstanding section 42-1125, the department shall not assess a penalty against an employer for failing to make a timely monthly payment if the employer had filed and remitted all taxes due on a quarterly basis and brings all filings and payments into current compliance within thirty days after being notified by the department.

E. Each employee shall elect the amount authorized by subsection B of this section to be withheld for application toward the employee's state income tax liability. The election provided under this subsection shall be exercised by each employee, in writing on a form prescribed by the department. The election shall be made within five days of employment. Each employer shall notify the employees of the election made available under this subsection and shall have election forms available at all times. Each form shall be completed in triplicate, with one copy each for the department, the employer and the employee. The employer shall file a copy of each completed form with the department. Any employee failing to complete an election form as prescribed shall be deemed to have elected the smallest applicable withholding percentage. END_STATUTE

Sec. 64. Section 44-313, Arizona Revised Statutes, is amended to read:

START_STATUTE44-313. Deposit of monies; definition

A. Except as otherwise provided in this section or section 44‑314, the department shall deposit, pursuant to sections 35‑146 and 35‑147, in the state general fund all monies received pursuant to this chapter, including the proceeds from the sale of abandoned property pursuant to section 44‑312, except that:

1. Thirty‑five per cent of the monies shall be deposited in the housing trust fund established by section 41‑3955.

2. Twenty per cent of the monies shall be deposited in the housing trust fund established by section 41‑3955. These monies shall be used exclusively for the development of eligible and viable housing in rural areas and for the purposes authorized under the housing development fund established by section 41‑3956.

1. Fifty-five per cent of the monies shall be deposited in the housing trust fund established by section 41-3955. The first two million five hundred thousand dollars deposited in the housing trust fund pursuant to this section shall be transferred to the state general fund. Of the remaining monies, thirty-six per cent shall be used exclusively for the development of eligible and viable housing in rural areas and for the purposes authorized under the housing development fund established by section 41-3956.

3. 2. Twenty per cent of the monies shall be deposited in the funds in the amounts provided in section 5‑113, subsection A.

B. The department shall deposit monies from unclaimed shares and dividends of any corporation incorporated under the laws of this state in the permanent state school fund pursuant to article XI, section 8, Constitution of Arizona.

C. The department shall deposit monies from unclaimed victim restitution payments in the victim compensation and assistance fund established by section 41‑2407 for the purpose of establishing, maintaining and supporting programs that compensate and assist victims of crime.

D. The department shall retain in a separate trust fund at least one hundred thousand dollars from which the department shall pay claims.

E. Before making the deposit, the department shall record the name and last known address of each person who appears from the holders' reports to be entitled to the property and the name and last known address of each insured person or annuitant and beneficiary. The department shall also record the policy or contract number of each policy or contract of an insurance company that is listed in the report, the name of the company and the amount due. The department shall make the record available for public inspection during reasonable business hours.

F. Before making any deposit to the credit of the state general fund, the department may deduct, subject to legislative appropriation, administrative expenses in the following order of priority:

1. Any costs in connection with the sale of abandoned property.

2. Costs of mailing and publication in connection with any abandoned property.

3. Reasonable department service charges.

4. Costs incurred in examining records of holders of property and in collecting the property from those holders.

5. Lawful holder charges.

G. The department shall deposit monies received pursuant to section 35‑187 in the homeless trust fund as provided in section 41‑2021 in an amount of not more than one million dollars. The department shall deposit monies in excess of one million dollars pursuant to the distribution described in subsections A and B of this section. Before making any deposit in the homeless trust fund, the department shall deduct any amounts related to owner claims and interest payments.

H. For the purposes of this section, "rural area" means either:

1. A county with a population of less than four hundred thousand persons.

2. A census county division with less than fifty thousand persons in a county with a population of four hundred thousand or more persons. END_STATUTE

Sec. 65. Laws 1997, first special session, chapter 3, section 5, as amended by Laws 1999, first special session, chapter 3, section 9 and Laws 2001, chapter 286, section 2, is amended to read:

Sec. 5. Flight property tax; distribution of monies

Notwithstanding section 42-14255, subsection A, Arizona Revised Statutes, through June 30, 2003 2004, the state treasurer shall deposit fifty per cent of the revenues from the flight property tax in the state general fund and fifty per cent in the aviation fund.

Sec. 66. Laws 2001, chapter 286, section 3 is amended to read:

Sec. 3. Delayed repeal

Laws 1997, first special session, chapter 3, section 5, as amended by Laws 1999, first special session, chapter 3, section 9, Laws 2001, chapter 286, section 2 and this act, is repealed from and after June 30, 2003 2004.

Sec. 67. Laws 2002, chapter 321, section 18, as amended by Laws 2003, first special session, chapter 2, section 6, is amended to read:

Sec. 18. Settlement payments; Ladewig v. State

A. The legislature allocates $15,000,000 in fiscal year 2002-2003 for the purposes of covering the first year payments and costs associated with the case of Ladewig v. State of Arizona. The department of revenue shall draw all amounts necessary pursuant to the authority prescribed in section 42‑1117, Arizona Revised Statutes, for the payments and costs.

B. From the allocation made in subsection A of this section, up to $15,000,000 may be used by the department of revenue for the purposes of administration and review of payments. Additional administrative funding may be required as part of future allocations. Before the expenditure of up to $15,000,000 for administrative expenses, the department of revenue shall present an expenditure plan for joint legislative budget committee approval that includes an estimate and scope of the entire administrative requirement associated with disbursing payments and costs for this case.

C. From the allocation made in subsection A of this section, any unused amount from subsection B of this section shall be held in reserve for future payments related to the case of Ladewig v. State of Arizona available for the purposes of subsection B of this section in fiscal year 2003-2004.

Sec. 68. Reversion of appropriations; state general fund

Notwithstanding any other law, all unexpended and unencumbered monies remaining in the following appropriation and any subsequent amendments to or repeals of the appropriation revert to the state general fund on the effective date of this act:

Laws 1997, first special session, chapter 1, section 2 relating to the performance incentive pilot program.

Sec. 69. Settlement payments; Ladewig v. State

A. The legislature allocates $75,000,000 in fiscal year 2003-2004 for the purposes of covering the second year payments and costs associated with the case of Ladewig v. State of Arizona. The department of revenue shall draw all amounts necessary pursuant to the authority prescribed in section 42-1117, Arizona Revised Statutes, for the payments and costs.

B. From the allocation made in subsection A of this section, up to $7,300,000 may be used by the department of revenue for the purposes of administration and review of payments. Additional administrative funding may be required as part of future allocations. Before the expenditure of any monies allocated in this subsection, the department of revenue shall present an expenditure plan for joint legislative budget committee approval that includes an estimate and scope of the entire administrative requirement associated with disbursing payments and costs for this case.

C. From the allocation made in subsection A of this section, any unused amounts from subsections A and B of this section shall be held in reserve for future payments related to the case of Ladewig v. State of Arizona.

Sec. 70. Lottery deposits

Notwithstanding section 5-505, subsection B, Arizona Revised Statutes, for fiscal year 2003-2004 not less than 31.6 per cent of the total annual revenues accruing from the sale of multistate lottery tickets shall be deposited in the state lottery fund established by section 5-521, Arizona Revised Statutes, to be used as prescribed in section 5-522, Arizona Revised Statutes.

Sec. 71. Adult probation ratios; suspension

Notwithstanding section 12-251, subsection A, Arizona Revised Statutes, and section 13-916, subsection B, Arizona Revised Statutes, or any other law, adult probation ratios are suspended for Maricopa county for fiscal year 2003-2004.

Sec. 72. 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 2003-2004 for the purposes of meeting the requirement to recover at least ninety-five per cent but not more than one hundred ten per cent of the department's appropriated budget.

Sec. 73. Department of mines and mineral resources; rental adjustment

Notwithstanding any other law, the department of administration shall reduce the department of mines and mineral resources rental charge for state‑owned space in fiscal years 2003-2004 and 2004-2005 by $205,100.

Sec. 74. Off-highway vehicle recreation fund; use for operation of parks

Notwithstanding section 28-1176, subsection C, Arizona Revised Statutes, the Arizona state parks board may spend up to $692,100 from the Arizona game and fish department allocation in section 28-1176, subsection C, Arizona Revised Statutes, in fiscal year 2003-2004 for parks board operating expenses from the off-highway vehicle recreation fund established by section 28-1176, Arizona Revised Statutes.

Sec. 75. Real estate department; fee adjustment suspension

Notwithstanding section 32-2103, subsection B, Arizona Revised Statutes, the real estate commissioner shall not revise fees in fiscal year 2003-2004 for the purposes of meeting the requirement to recover at least ninety-five per cent but not more than one hundred ten per cent of the department's appropriated budget.

Sec. 76. Water protection fund; appropriation

Notwithstanding section 45-2112, subsection B, Arizona Revised Statutes, the annual appropriation from the state general fund to the Arizona water protection fund for fiscal year 2003-2004 shall be as specified in the general appropriations act.

Sec. 77. WQARF transfer from corporate income tax; suspension

Notwithstanding section 49-282, subsection B, Arizona Revised Statutes, or any other law, the state treasurer shall transfer only $10,000,000 from the corporate income tax collected pursuant to title 43, chapter 11, article 2, Arizona Revised Statutes, to the water quality assurance revolving fund in fiscal year 2003-2004. These monies are in addition to revenues from sources specified in section 49-282, subsection A, paragraphs 2 through 11 and 13, Arizona Revised Statutes. No monies from the transaction privilege and severance tax clearing account established pursuant to section 42-5029, subsection D, paragraph 4, Arizona Revised Statutes, shall be deposited in the water quality assurance revolving fund in fiscal year 2003-2004.

Sec. 78. Private incarceration facilities; procurement exemption

Notwithstanding any other law, for fiscal year 2003-2004 the state department of corrections is exempt from the provisions of title 41, chapter 23, Arizona Revised Statutes, for private incarceration facility contracts. All other procurement by the department shall be as prescribed by title 41, chapter 23, Arizona Revised Statutes.

Sec. 79. Criminal justice enhancement fund; general fund deposit; crime laboratory assessment fund

Notwithstanding any other provision of law, for fiscal year 2003-2004, any monies distributed from the criminal justice enhancement fund pursuant to section 41-2401, subsection D, paragraph 11, Arizona Revised Statutes, shall be deposited in the crime laboratory assessment fund established by section 41-2415, Arizona Revised Statutes. Notwithstanding section 41-2415, subsection C, Arizona Revised Statutes, monies distributed by this section pursuant to section 41-2401, subsection D, paragraph 11, Arizona Revised Statutes, are for use by the department of public safety and are exempt from distribution to other political subdivisions.

Sec. 80. Department of public safety; highway funds; distribution

Notwithstanding sections 28-6537 and 28-6993, Arizona Revised Statutes, the statutory cap limiting the level of highway user revenue fund monies and state highway fund monies available to fund department of public safety highway patrol costs is suspended for fiscal year 2003-2004.

Sec. 81. Department of public safety; notice to federal bureau of investigation; firearms checks

The director of the department of public safety shall notify the director of the federal bureau of investigation that the responsibility to perform background checks to determine whether purchases, sales or transfers of firearms to any person violate any federal law or any law of this state prohibiting the possession of firearms is transferred to the federal bureau of investigation on the effective date of this act.

Sec. 82. Adult and juvenile probation programs; reimbursement of costs

A. For fiscal year 2003-2004 and fiscal year 2004-2005, the administrative office of the courts shall require a county with a population of more than five hundred thousand persons but less than one million five hundred thousand persons to quarterly reimburse the administrative office of the courts for adult and juvenile probation costs. The total county reimbursement for any one fiscal year shall equal $1,381,900. The administrative office of the courts shall deposit, pursuant to sections 35‑146 and 35-147, Arizona Revised Statutes, these monies in the state general fund.

B. The county shall make the reimbursement for costs pursuant to subsection A of this section within thirty days after a request. If the county does not make the reimbursement, the director of the administrative office of the courts shall notify the state treasurer of the amounts owed and the treasurer shall withhold the amount, including any additional interest as provided in section 42-1123, Arizona Revised Statutes, from any transaction privilege tax distributions to the county. The treasurer shall deposit, pursuant to sections 35-146 and 35-147, Arizona Revised Statutes, the withholdings in the state general fund.

Sec. 83. Maricopa county; adult probation; caseload

A. For fiscal year 2003-2004 and fiscal year 2004-2005, it is the intent of the legislature that Maricopa county will pay for adult probation programs in that county. For the purposes of this section, adult probation programs shall include standard probation, intensive probation, interstate compact probation and community punishment. It is not the intent of the legislature that the administrative office of the courts withdraw allocation of funds to Maricopa county for other adult probation programs, or for support services it provides to the county for adult probation.

B. The administrative office of the courts shall not allocate any monies appropriated for adult probation services to Maricopa county. The administrative office of the courts may allocate monies to Maricopa county for juvenile probation programs.

C. The board of supervisors shall provide administrative oversight and establish program standards for adult probation programs in Maricopa county.

D. The Maricopa county adult probation department shall prepare and submit a monthly performance report to the joint legislative budget committee and the county board of supervisors. The report shall include performance measures for adult standard probation, adult intensive probation, interstate compact probation and the community punishment program. For each program, the measures shall include, but are not limited to, the following:

1. The total caseload capacity.

2. The total number of active cases.

3. A comparison of caseload capacity in the current month to the caseload capacity funded by the state and Maricopa county as of December 1, 2002.

4. The average number of offenders supervised by each probation officer or probation officer team for that month.

5. The number of officers currently supervising offenders.

6. The number of individuals receiving treatment services.

7. The average supervision cost per probationer.

8. The average treatment cost per probationer.

9. The number of probation violators recommended to be committed to state prison.

10. The number of probation violators committed to state prison.

E. For the programs listed in subsection A, Maricopa county shall provide the level of funding necessary to maintain the caseload capacity existing as of December 1, 2002. Maricopa county maintenance of caseload capacity shall include the caseload capacity funded by the state and Maricopa county as of December 1, 2002. To ensure that offenders are not imprisoned who would otherwise be assigned to probation, Maricopa county shall maintain adult probation caseload capacity in fiscal years 2003-2004 and 2004-2005 to allow a continuum of sanctions from standard probation to intensive probation so that offenders may be sentenced pursuant to law.

Sec. 84. County expenditure limitations; adult probation; fiscal year 2003-2004 and fiscal year 2004-2005 adjustment formula

A. As a result of the transfer of funding for adult probation as provided in this act from the state to Maricopa county beginning in fiscal year 2003-2004, the economic estimates commission shall increase the county's base expenditure limit by an amount determined as follows:

1. Divide the amount of the state payments received by the county for adult standard probation, adult intensive probation, community punishment, adult interstate compact probation and adult probation treatment services in fiscal year 2002-2003 by the GDP price deflator, as defined in section 41‑563, Arizona Revised Statutes, for the same fiscal year used to calculate expenditure limitations for fiscal year 2003-2004 and multiply the resulting quotient by the GDP price deflator determined for fiscal year 1979-1980.

2. Divide the amount determined in paragraph 1 for fiscal year 2003‑2004 by the population of the county, as defined in article IX, section 20, subsection (3), paragraph (f), Constitution of Arizona, for the same fiscal year used to calculate expenditure limitations for fiscal year 2003‑2004 and multiply the resulting quotient by the population of the county for fiscal year 1979-1980.

B. The economic estimates commission shall adjust the county expenditure limitation for fiscal year 2003-2004 based on this section. The calculation shall use the same base limit of $156,635,737 for Maricopa county for the purpose of determining the adjustment.

Sec. 85. State and county tax amnesty; definitions

A. Notwithstanding title 42, chapter 1, article 3, Arizona Revised Statutes, the director of the department of revenue shall establish a tax amnesty program as provided by this section.

B. If a taxpayer complies with the requirements of this section by applying to the department for amnesty during the amnesty period and complying with the applicable tax requirements in the time and manner prescribed by this section, the director shall abate or waive all or part of the civil penalties and impose interest at a reduced rate for tax liabilities that have been or could be assessed or imposed for any taxable period during the applicable liability period without the need for the taxpayer to show reasonable cause or the absence of wilful neglect. For the purposes of this subsection, "liability period" means:

1. For taxpayers filing annually, any taxable period beginning from and after December 31, 1982 and ending before January 1, 2002.

2. For taxpayers having a 52-53 week tax year, any taxable period beginning from and after December 25, 1983 and ending before January 15, 2002.

3. For all other taxpayers, any taxable period beginning from and after December 31, 1982 and ending before January 1, 2003.

C. The director may grant amnesty only for the taxable periods and tax liabilities identified in the application and only if the taxpayer satisfies all of the amnesty conditions and requirements prescribed by this section.

D. To qualify for amnesty, the taxpayer must:

1. Submit a complete and correct application as provided by subsection F of this section during the amnesty period.

2. Pay the tax, plus any interest due pursuant to the provisions of this section, either with the application or in installments as follows:

(a) At least one-third of the total amount due must be paid on or before October 31, 2003.

(b) The balance due must be paid in full on or before May 1, 2004.

E. A taxpayer does not qualify for amnesty under this section if:

1. An audit determination has become final with respect to the taxable period for which amnesty is sought.

2. The taxpayer is a party to any criminal investigation or to any criminal administrative proceeding or criminal litigation that is pending on September 1, 2003 in any court of the United States or of this state for failure to file or failure to pay, or for fraud with respect to, any tax imposed by any law of this state and required to be collected by the department.

3. The taxpayer has been the subject of a past tax-related criminal investigation, indictment or prosecution if the investigation, indictment or prosecution resulted in a conviction, a guilty plea or a plea of no contest.

4. The taxpayer has been convicted of a crime relating to any period or assessment of a tax that is the basis of the penalty or interest with respect to which amnesty is sought.

5. The taxpayer is a party to a closing agreement with the department for the tax periods included in the amnesty application.

F. An application for amnesty:

1. Must be on an application form furnished by the department that requires the applicant to identify the tax, the qualifying taxable period and the tax liability for which amnesty is sought and to furnish other information prescribed by the director. The taxpayer shall include any returns and reports, including amended returns and reports, for the tax and taxable periods. Any return or report filed under this section is subject to verification as provided by law. A taxpayer who has insufficient information to file a full income tax return may file a gross income return and compute the tax pursuant to established rate brackets based on average tax rates for the applicable taxable years.

2. Must be filed with the department as prescribed by the director during the amnesty period.

G. An application for amnesty constitutes an express and absolute waiver of all administrative and judicial rights of appeal that have not run or otherwise expired as of the date of application. The state board of tax appeals and any court shall dismiss each such action or proceeding before that body on receiving a notification from the director that amnesty has been granted for the taxable period. If the audit determination is not final, the taxpayer must withdraw from the proceeding or litigation before amnesty is granted.

H. On reviewing the application and determining compliance with the requirements of the amnesty program under this section:

1. The director shall notify the taxpayer regarding the application for amnesty, waiving or abating the civil penalties and imposing a reduced interest rate for tax liabilities that were or could have been assessed for the taxable periods covered by the application.

2. No administrative, civil or criminal action may be brought for failure to comply with the tax requirements for the taxable periods covered by the application.

I. A grant of amnesty under this section does not entitle any affected taxpayer or other person to a refund or credit of any amount previously paid.

J. The director shall deny or revoke the amnesty of a person who files a false or fraudulent application, return or report for purposes of this section, or otherwise attempts to defeat or evade a tax through the amnesty program. If a person who applies for amnesty fails to pay all amounts due as provided by this section, any amnesty granted pursuant to this section is void.

K. The director may:

1. Do all things necessary to provide for the timely implementation of this section.

2. Adopt emergency rules pursuant to section 41-1026, Arizona Revised Statutes, as necessary to administer this section.

L. The tax revenues collected pursuant to amnesty payments shall be distributed by the department as provided by law on or after March 1, 2004 but before June 1, 2004.

M. For the purposes of this section:

1. "Amnesty period" means September 1, 2003 through October 31, 2003.

2. "Tax" means any tax administered or collected by the department of revenue on behalf of this state or a county except estate tax and ad valorem property taxes.

3. "Tax liability" includes any payment of estimated tax, withholding tax, interest and penalties required by law.

4. "Tax requirement" means:

(a) Timely filing a complete and correct tax return or report required by law.

(b) Timely paying a tax liability.

N. Beginning November 15, 2003 through June 15, 2004, the department shall submit a cumulative monthly report to the governor, the speaker of the house of representatives and the president of the senate. The report shall include:

1. The number of taxpayers that have applied for amnesty under this section.

2. The number of taxpayers that have been granted amnesty.

3. The amount of revenue received from taxpayers for amnesty periods.

4. The amount of outstanding liability from taxpayers that have begun paying.

Sec. 86. Delayed repeal

Section 85 of this act, relating to tax amnesty, is repealed from and after June 30, 2004.

Sec. 87. County contribution fund; county payments

A. The county contribution fund is established and shall consist of monies paid into it in accordance with subsections C and D of this section. Monies remaining in the fund at the end of the fiscal year revert to the state general fund.

B. Monies in the fund shall be used for state operations and are subject to legislative appropriation. The state treasurer shall administer the fund.

C. For fiscal year 2003‑2004 and fiscal year 2004-2005, on the fifteenth of each month, each county shall pay one-twelfth of the amount listed in subsection D of this section into the county contribution fund. If a county does not make the payment, the state treasurer shall withhold the required amount, including any additional interest as provided in section 42‑1123, Arizona Revised Statutes, from the monthly transaction privilege tax distributions to the county. The state treasurer shall deposit the required withholding in the county contribution fund.

D. For fiscal year 2003‑2004 and fiscal year 2004-2005, on the fifteenth of each month, each county listed shall pay one‑twelfth of the following amounts into the county contribution fund:

Apache County $ 32,400

Cochise County $ 447,000

Coconino County $ 463,300

Gila County $ 101,000

Graham County $ 38,100

Greenlee County $ 19,400

La Paz County $ 27,900

Mohave County $ 583,200

Navajo County $ 89,400

Pima County $3,827,600

Pinal County $ 705,500

Santa Cruz County $ 67,800

Yavapai County $ 687,500

Yuma County $ 356,400

Sec. 88. Delayed repeal

Section 87 of this act, relating to the county contribution fund, is repealed from and after June 30, 2005.

Sec. 89. Self-insurance; prohibition

Notwithstanding section 38-651, Arizona Revised Statutes, the department of administration shall not self-insure for the purposes of providing indemnity health insurance, hospital and medical service plans, dental plans and health maintenance organization during the fiscal year 2003‑2004.

Sec. 90. Collection enforcement revolving fund

Notwithstanding section 41-191.03, subsection B, Arizona Revised Statutes, the attorney general may use monies in the collection enforcement revolving fund established by section 41-191.03, Arizona Revised Statutes, for any operating expenses incurred by the department in fiscal year 2003‑2004.

Sec. 91. Fiscal year 2003-2004 conditional adjustment; efficiency savings reporting

A. State general fund revenue for fiscal year 2002-2003, not including the beginning balance, revenues collected from the six-tenths of one per cent transaction privilege tax for education, an estimated $348,543,900 of previously enacted available fund transfers to the general fund, an estimated $50,000,000 received pursuant to Laws 2003, first special session, chapter 2, section 21 and an estimated $900,000 received pursuant to Laws 2003, first special session, chapter 2, section 20, is forecasted to be $5,630,501,900. If, as determined by the staff director of the joint legislative budget committee and the governor’s office of strategic planning and budgeting on September 1, 2003, the actual state general fund revenue exceeds $5,635,501,900, the eighty million dollars in general fund efficiency savings assumed for the fiscal year 2003‑2004 budget shall be reduced by the difference between $5,635,501,900 and the actual fiscal year 2002-2003 state general fund revenue.

B. The governor's office of strategic planning and budgeting shall report by January 15, 2004 and April 15, 2004 on the status, amount to date and future anticipated amounts of efficiency savings to the speaker of the house of representatives and the president of the senate. The report shall also identify the programs generating efficiency savings.

Sec. 92. County transportation contribution fund; county payments

A. The county transportation contribution fund is established and shall consist of monies paid into it in accordance with subsections C and D of this section. Monies remaining in the fund at the end of the fiscal year shall revert to the state general fund.

B. Monies in the fund shall be used for state operations related to highway and law enforcement services and are subject to legislative appropriation. The state treasurer shall administer the fund.

C. For fiscal year 2003-2004 and fiscal year 2004-2005, on the fifteenth of each month, each county shall pay one-twelfth of the amount listed in subsection D of this section into the county transportation contribution fund. If a county does not make the payment, the state treasurer shall withhold the required amount, including any additional interest as provided in section 42-1123, Arizona Revised Statutes, from the highway user revenue fund distributions to the county. The state treasurer shall deposit the required withholding in the county transportation contribution fund.

D. For fiscal year 2003-2004 and fiscal year 2004-2005, on the fifteenth of each month, each county listed shall pay one‑twelfth of the following fiscal year amounts into the county transportation contribution fund:

2003-2004 2004-2005

Apache County $ 90,900 $ 90,900

Cochise County $ 543,900 $ 543,900

Coconino County $ 779,900 $ 779,900

Gila County $ 284,300 $ 284,300

Graham County $ 107,100 $ 107,100

Greenlee County $ 54,500 $ 54,500

La Paz County $ 78,400 $ 78,400

Maricopa County -0- $4,800,000

Mohave County $ 740,700 $ 740,700

Navajo County $ 251,200 $ 251,200

Pima County $2,881,400 $2,881,400

Pinal County $ 771,700 $ 771,700

Santa Cruz County $ 190,500 $ 190,500

Yavapai County $ 726,200 $ 726,200

Yuma County $ 706,100 $ 706,100

E. Notwithstanding section 28-6533, subsection B, Arizona Revised Statutes, a county may use its allocation of highway user revenue fund monies for the purposes of meeting the requirements of this section.

Sec. 93. Delayed repeal

Section 92 of this act, relating to the county transportation contribution fund, is repealed from and after June 30, 2005.

Sec. 94. Heritage fund; distribution; suspension

Notwithstanding section 41-503, Arizona Revised Statutes, the distribution percentages established in section 41-503, Arizona Revised Statutes, for monies in the Arizona state parks board heritage fund are suspended in fiscal year 2002-2003 and fiscal year 2003-2004. Distribution of any fund monies remaining after any transfers included in any general appropriation acts for fiscal year 2002-2003 and fiscal year 2003-2004 shall be at the discretion of the Arizona state parks board.

Sec. 95. Arizona state parks board heritage fund; uses; operating expenses

Notwithstanding sections 41-502 and 41-503, Arizona Revised Statutes, or any other law, Arizona state parks board heritage fund monies related to local, regional and state trails, parks, outdoor recreation and open space pursuant to section 41-503, subsection D, Arizona Revised Statutes, in amounts appropriated by the legislature may be used for operating expenses and community service projects of the Arizona commission on the arts in fiscal year 2003-2004.

Sec. 96. Arts endowment deposits

Notwithstanding section 42-5029, subsection D, paragraph 4, subdivision (a), item (iii), Arizona Revised Statutes, deposits into the Arizona arts endowment fund established by section 41-986, Arizona Revised Statutes, shall be zero in fiscal year 2003-2004.

Sec. 97. Department of public safety; transfer of vehicles

The department of public safety shall transfer two vehicles with less than 80,000 miles from the criminal investigations division to the department of liquor licenses and control for use in liquor enforcement activities.

Sec. 98. In lieu fees; deposit

A. Notwithstanding sections 49-543 and 49-551, Arizona Revised Statutes, or any other law, the first $11,700,000 in revenues received from in lieu fees pursuant to section 49-543, subsection B, paragraph 2, Arizona Revised Statutes, shall be deposited in the state general fund in fiscal year 2003-2004 and fiscal year 2004-2005.

B. Notwithstanding sections 49-543 and 49-551, Arizona Revised Statutes, or any other law, up to $1,700,000 of in lieu fee revenues received in excess of $11,700,000 shall be deposited in the air quality fund in fiscal year 2003-2004 and fiscal year 2004-2005. Monies deposited in the air quality fund pursuant to this subsection shall be appropriated in fiscal year 2003-2004 and fiscal year 2004-2005 for the purpose of providing diesel vehicle low emissions incentive grants pursuant to section 49-551.01, Arizona Revised Statutes.

Sec. 99. Justices of the peace; payment of compensation; fiscal year 2003-2004 and fiscal year 2004-2005

Notwithstanding section 22-117, subsection B, Arizona Revised Statutes, for fiscal year 2003-2004 and fiscal year 2004-2005, the state shall pay 38.5 per cent of the compensation and employee related expenditures of a justice of the peace and the county shall pay 61.5 per cent of the compensation and employee related expenditures of a justice of the peace, except that the county shall pay the full amount of the employer contribution to the Arizona state retirement system or any county health plan.

Sec. 100. Unrestricted federal grant monies

Monies received from the jobs and growth tax relief reconciliation act as of June 1, 2003 shall be deposited in the state general fund. The monies shall be used for the payment of essential government services.

Sec. 101. Telecommunications services; request for proposals

A. On or before October 31, 2003, the government information technology agency, in consultation with the department of administration, shall prepare and submit to the joint committee on capital review for review an actionable request for proposals to privatize telecommunications services. The request for proposals shall have received a minimum of conditional approval by the information technology authorization committee.

B. The department of administration shall provide comments on the final draft of the request for proposals to the joint committee on capital review on or before October 31, 2003.

C. The request for proposals shall provide for the telecommunications requirements of state agencies and branch offices of state agencies regardless of location, excluding state universities and community colleges. The request for proposals shall require that all responses leverage network equipment that is already procured by state agencies. The request for proposals shall provide for a scalable, centralized, statewide, voice, video and data converged solution pursuant to the government information technology agency target architecture that will streamline state agency communications and enable other services such as state government N11 abbreviated dialing.

D. Any contracts that result from the request for proposals shall be implemented under the supervision of the department of administration.

E. The department of administration shall issue the request for proposals within ten business days after the review by the joint committee on capital review.

F. Contingent on approval of the information technology authorization committee, the department of administration shall award a contract or contracts within one hundred twenty days after the issuance of the request for proposals.

G. At least ten days before the department of administration enters into a contract or contracts that result from the request for proposals, the director of the department of administration shall submit the provisions of the contract or contracts for review by the joint committee on capital review in executive session. The materials submitted by the department of administration shall provide an analysis of the short-term and long-term annual capital and operating costs that would result from the contracts. The department of administration shall also include a comparison of the architecture and funding of the current Arizona telecommunications system and the telecommunications system that would result from acceptance of the contract or contracts and shall provide an analysis of the compatibility of the contracted system with current telecommunications assets. Information provided in executive session shall remain confidential until the contract award is made in compliance with title 41, chapter 23, Arizona Revised Statutes.

H. The government information technology agency and the department of administration shall report monthly, beginning on the effective date of this act, to the joint committee on capital review on the status of activities and expenditures related to this section.

I. The sum of $500,000 from the technology and telecommunications fund in fiscal year 2003-2004 is available to the government information technology agency for preparation of the request for proposals pursuant to this section.

Sec. 102. Retroactivity

A. Sections 5-504, 5-505, 5-522, 28-737, 28-876, 28-2416, 28-8101, 28‑8103, 42-5252 and 43-401, Arizona Revised Statutes, as amended by this act, apply retroactively to from and after June 30, 2003 and sections 4, 87 and 92 of this act and section 15-1306, Arizona Revised Statutes, as added by this act, are effective retroactively to from and after June 30, 2003.

B. Section 100 of this act is effective retroactively to from and after May 31, 2003.

Sec. 103. Authorization to transfer title to certain state owned property; Maricopa county

Notwithstanding section 37-803, Arizona Revised Statutes, or any other law, the director of the department of administration shall convey title to state owned real properties located at 3815 North Black Canyon to Maricopa county as reimbursement for the transfer of one million eight hundred thousand dollars from Maricopa county to the state general fund.

Sec. 104. Conditional repeal; North Black Canyon properties

Laws 2003, first special session, chapter 2, section 20 is repealed if all the conditions prescribed by section 103 of this act, relating to the transfer of ownership of state owned real properties located at 3815 North Black Canyon, are met.

Sec. 105. State land department; federal reclamation trust fund; research

Notwithstanding section 37-106, Arizona Revised Statutes, or any other law, the state land department may use up to $80,000 from the federal reclamation trust fund in fiscal year 2003-2004 for consultants to develop unit agreements pursuant to section 27-557, Arizona Revised Statutes, and other agreements related to gas extraction on state trust land. It is the intent of the legislature that the department develop a cost sharing agreement between the state and lessee through a unit agreement for future legal research and administrative costs. The state land department shall provide quarterly status reports on the progress of any unit agreement or related agreements to the speaker of the house of representatives, the president of the senate and the joint legislative budget committee.

Sec. 106. Conditional enactment; notice

A. Sections 15, 20 through 28 and 61 of this act are not effective unless a sports entertainment facility, as defined by section 42-5032, Arizona Revised Statutes, is selected as the site of an additional major national sporting event by December 31, 2003.

B. On or before December 31, 2003, the director of the department of revenue shall notify the director of the legislative council whether this condition occurred.

Sec. 107. State parks enhancement fund; operating

Notwithstanding section 41-511.11, Arizona Revised Statutes, or any other law, all monies, except those necessary for the lease-purchase payments for the Tonto Natural Bridge State Park, are available for the operating of state parks in fiscal year 2003-2004 as appropriated by the legislature in the general appropriations act.

Sec. 108. Retroactivity

Section 12-116.04, Arizona Revised Statutes, as added by this act, is effective retroactively to from and after August 31, 2003.

Sec. 109. Authorization to transfer title to certain state owned property; Maricopa county

Notwithstanding section 37-803, Arizona Revised Statutes, or any other law, the director of the department of administration shall convey title to state owned real properties located at 342 North 32^nd street to Maricopa county as reimbursement for the transfer of three million dollars from Maricopa county to the state general fund.

Sec. 110. County billing

A. For fiscal year 2003-2004 and fiscal year 2004-2005, the state treasurer shall bill a county with a population of one million five hundred thousand or more persons for state operations. The state treasurer shall bill the county each year in twelve equal monthly billings that have an annual total of five million four hundred two thousand eight hundred dollars. The state treasurer shall deposit the payments from the county in the state general fund.

B. If the county does not make the payment within fifteen days of billing, the state treasurer shall withhold the required amount, including any additional interest as provided in section 42-1123, Arizona Revised Statutes, from the monthly transaction privilege tax distributions to the county. The state treasurer shall deposit the required withholding in the state general fund.

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