House of Representatives

HB 2010

criminal justice; budget reconciliation

Sponsor: Representative Adams



Committee on Appropriations


Caucus and COW


As Transmitted to the Governor


HB 2010 makes various changes related to criminal justice that are necessary to implement the FY 2009-10 state budget.



As Permanent Law:

·          Increases the probation surcharge from $10 to $20. 

·          Increases the average number of adults supervised by each deputy adult probation officer from 60 to 65.

·          Increases the adult intensive probation fee from $50 to $75 and specifies that all of these monies must be deposited into each county’s Adult Probation Services Fund, rather than any amount over $40.   

·          Expands the definition of adult intensive probation team to include two adult probation officers.

·          Establishes the following minimum monthly supervision fees:

v      $50 for persons on parole;

v      $65 for persons on probation; and

v      $75 for persons on intensive probation.

·          Makes conforming changes to the interstate compacts statutes pertaining to probationer and parolee fees.

As Session Law:

·          Suspends the county non-supplanting requirements associated with the following:

v      Criminal case processing (A.R.S. §§12-102.02, 12-102.03);

v      Alternative dispute resolution programs (A.R.S. § 12-135);

v      Probation services for adults and juveniles (A.R.S. §§ 12-267, 12-268, 12-299.01); and

v      Community based sentencing (A.R.S. §12-299.01).

·          Suspends the requirements for the following reports in FY 2009-10 and as permanent law further requires the following annual reports to be submitted electronically beginning in FY 2011-12:

v      Juvenile Intensive Probation;

v      Community Punishment Program;

v      Drug Treatment and Education Fund;

v      Annual Lengthy Trial Fund;

v      Domestic Relations Committee;

v      Child Support Committee; and

v      Emancipation of Minors.

·          Mandates the state to pay 19.25% of compensation and employee-related expenditures of a justice of the peace, and requires the county to pay the other 80.75%.  Further requires the county to pay the full amount of the employer contribution of the state retirement system or plan or any county health plan.

·          Continues to exempt the photo radar citations issued from being included in the judicial productivity credit calculations in FY 2010, and applies this exemption retroactively from and after June 30, 2009.

Arizona Department of Corrections

As Permanent Law:

·          Stipulates that if a prisoner in a secure care facility requires health care services that the Department of Corrections (ADC), the facility or a private prison provider contracted by the ADC cannot provide, the ADC must pay approved claims from a facility or provider that provides the following:

v      For inpatient and outpatient hospital services, the ADC must reimburse at a level that does not exceed the hospital reimbursement methodology outlined in A.R.S. § 36-2903.01.

v      For health and medical services, the ADC must reimburse at a level that does not exceed the capped fee-for-service schedule that is adopted by the Arizona Health Care Cost Containment System Administration (AHCCCS) and that is in effect at the time the services are delivered.

·          Requires that the 11.70% of the Criminal Justice Enhancement monies designated for county sheriffs be allocated through the Office of the State Treasurer rather than the Arizona Department of Corrections. 

As Session Law:

·          Effective from and after September 30, 2009, requires the ADC to report actual FY 2008-09, estimated FY 2009-10 and requested FY 2010-11 expenditures for each line item delineated in FY 2009-10 General Appropriations Act when the ADC submits it’s FY 2010-11 budget request.

·          Effective from and after September 30, 2009, requires the ADC to issue a request for proposal to privatize correctional health services, including medical and dental services.  The request for proposal must be submitted to JLBC before it is issued.  This contract must:

v      Cost less than these services did in FY 2007-08; and

v      Be awarded by May 1, 2010.

·          Allows monies deposited in the Transition Office Fund to be used for any costs of operating transition programs. 

·          Requires DOA to enter into a lease purchase agreement for the state’s prisons or other state owned facilities and specifies that the agreement must be awarded by June 30, 2010 and must:

v      Result in net available proceeds of $735,419,300 million in the General Fund;

v      Be for a fixed term of up to 20 years; and

v      Require the initial payment due in FY 2010-11.


·          Clarifies that net available proceeds of the lease-purchase agreements need not be more than $250 million by December 31, 2009.

·          Allows the DOA to use any state owned facility as collateral and to transfer interest in any other state owned facility in the lease purchase finance agreements.

·          Requires DOA to issue a request for information before October 1, 2009 to identify the feasibility of a concession agreement that would allow a private vendor to operate a prison facility.  The request for proposal must be submitted to JCCR for review. 

·          Requires DOA to issue a request for proposals for a concession agreement that would allow private vendors to operate one or more prison facilities other than the prison complex at Yuma. The request for proposal must be submitted to JCCR by April 1, 2010 for review.  The terms must include:

v      The cost efficiency savings be equally divided between the state and the private vendor; and

v      An annual cost efficiency savings to the state.


·          Clarifies that the intent of the Legislature is that the privatization of prison operations generate at least $100 million from private vendors at the beginning of the term.

·          Permits the ADC to use any non-appropriated monies for the payment of inmate health care expenditures incurred during FY 2007-08.

·          Requires the ADC to issue request for proposals and contract for 5000 private prison beds for either an expansion of current private prisons in this state or new locations in this state.

·          Allows:

v      The private vendor to bid for all or a portion of the 5000 beds;

v      The ADC to award the contract to one or more private vendors;

v      The ADC to use any non-appropriated monies for any start up and operating costs that are associated with the 4000 new state beds authorized in 2007: 

o       2000 in the Yuma;

o       1000 in the Perryville; and

o       1000 in the Tucson prison complexes. 

·          Requires:

v      The request for proposals to specify the length of the contract period, which must not exceed 20 years;

v      The request for proposal be submitted for review to the Joint Legislative Budget Committee (JLBC) no later than November 1, 2009;

v      All contracts to be awarded by June 30, 2010; and

v      The ADC, each calendar quarter until all new beds are occupied, to submit a report to the JLBC on the status of the beds.

Department of Public Safety

As Permanent Law:

·          Establishes the Crime Laboratory Operations Fund (CLOF) and, retroactively from and after June 30, 2009, requires the State Treasurer to deposit the first $10.4 million in annual revenue generated from defensive driving school surcharges in the CLOF and the remaining revenue in the state general fund.

·          Specifies that monies in the CLOF are to be used for crime laboratory operations.


As Session Law:

·          Reduces the amount appropriated to the DNA Identification System Fund in Laws 2007, Chapter 261, from $3,484,000 to $980,000 for FY 2009-10.

·          Suspends the statutory caps limiting the level of the Highway User Revenue Fund (HURF) and the State Highway Fund monies available to fund Department of Public Safety (DPS) highway patrol costs for FY 2009-10.

·          Requires any monies distributed from the Criminal Justice Enhancement Fund to be deposited in the Crime Laboratory Assessment Fund for use by the DPS.

Attorney General

As Session Law:

·          Allows the Attorney General to use the monies in the Consumer Protection-Consumer Fraud Revolving Fund for any operating expenses, including any cost or expense associated with the Tobacco Master Settlement Agreement arbitration.

·          Allows the Attorney General to use monies in the Collection Enforcement Revolving Fund for operating expenses incurred by the Department of Law. 


As Permanent Law:

·          Changes the definition of compensation in relation to DPS salaries to specify that for the purposes of computing retirement benefits, compensation does not include payments for work performed by DPS employees for a third party on a contracted basis or where a third party pays or reimburses DPS for the work performed, but does include, for the purpose of calculating retirement benefits, third party contracts performed with another public safety agency for primary police enforcement activities.

·          Requires new dispatchers hired after the effective date of the bill to participate in Arizona State Retirement System, rather than Corrections Officer Retirement Plan.

Board of Executive Clemency

As Session Law:

·          Requires the Chairman of the Board of Executive Clemency to also act as the Executive Director of the Board in FY 2009-10.

·          Requires all the members of the Board of Executive Clemency, except for the Chairman, to serve on a part-time basis.  The members are not permitted to work more than 30 hours per week and are not eligible for paid leave or benefits.


·          As permanent law, requires the Drug and Gang Prevention Resource Center to enter into an agreement with the Arizona Criminal Justice Commission (ACJC) to provide $235,200 to the ACJC for the Arizona Youth Survey.

·          As session law, requires Legislative Council staff to prepare proposed legislation conforming the Arizona Revised Statutes to the provisions of this act for consideration in the 49th Legislature, Second Regular Session.

·          Makes technical and conforming changes.





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Forty-ninth Legislature

Third Special Session  5          August 21, 2009


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