SB1274 - 532R

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

Section 1. Section 11-641, Arizona Revised Statutes, is amended to read:

START_STATUTE11-641. Monies illegally paid; liability; recovery

A. When If a board of supervisors or a county or school district officer, employee or agent, without authority of law, orders or causes any money public monies to be paid from the county treasury, the board or county or school district officer, employee or agent and the party in whose favor the order is made shall be are jointly and severally liable for the money monies with interest at the legal rate, and twenty per cent percent additional on the principal amount. If the money is monies are paid on a claim presented by a member of the board, the supervisor presenting the claim and the board shall be are jointly and severally liable for the money monies with interest at the legal rate, and twenty per cent percent additional on the principal amount.

B. A county or school district officer, employee or agent who is responsible for disbursing public monies pursuant to a warrant or other form of claim that does not originate from the officer, employee or agent making the disbursal may not be held liable under subsection a of this section for an illegal payment of public monies unless the county or school district officer, employee or agent responsible for disbursing public monies knew or should have known that a warrant or other claim would result in an illegal payment.

B. C. If an illegal payment of money monies is made as described in subsection A of this section, the county attorney shall may institute an action in the name of the county, against the board of supervisors and others liable or county or school district officer, employee or agent, to enjoin the payment of the money monies, or if it has been paid, to recover it the monies with interest at the legal rate, and twenty per cent percent additional on the principal amount, to be paid into the county treasury to the credit of the fund from which the allowance was made.

C. D. The board of supervisors may not dismiss, compromise or in any way control such an action. No A bond shall be is not required of a county in the action, on an injunction, or on an appeal. END_STATUTE

Sec. 2. Section 11-642, Arizona Revised Statutes, is amended to read:

START_STATUTE11-642. Action by taxpayer; recovery of monies illegally paid

A taxpayer of the county may request, in writing, the county attorney to institute an action pursuant to section 11-641. If a the county attorney fails for twenty days after the written request made by a taxpayer of the county to institute an action, as provided in section 11‑641, then any taxpayer of the county may bring the action in his the taxpayer's own name and at his the taxpayer's own cost, with the same effect as if brought by the county attorney, to recover public monies from the public body of the county that ordered or caused the illegal payment. The person instituting the action shall execute a bond with two or more sureties, made payable to the defendant and conditioned that if the plaintiff fails to prosecute the action with diligence and to effect, that the plaintiff will pay all damages sustained by the defendant by reason of the action and all costs incurred therein in the action. If the taxpayer prevails in the action, the court shall allow the taxpayer costs and a reasonable attorney fee not to exceed forty per cent percent of the amount recovered or saved to the county. END_STATUTE

Sec. 3. Section 35-212, Arizona Revised Statutes, is amended to read:

START_STATUTE35-212. Injunctive and civil remedies; definition

A. The attorney general in his the attorney general's discretion may bring an action in the name of the state to:

1. Enjoin the illegal payment of public monies, including violations of section 11‑952 and title 41, chapter 23. , or if the monies have been paid, to

2. Recover such illegally paid public monies plus twenty per cent percent of such that amount together with interest and costs, including reasonable attorney fees, to be paid to the state treasurer or other appropriate official, or, in the case of public monies of a political subdivision that did not originate or were not received from this state, to the political subdivision, to the credit of the fund from which the payment was made.

B. the attorney general may bring an action to recover illegally paid public monies against:

1. Any person who received the illegal payment.

2. the public body or the public officer acting in the officer's official capacity who ordered or caused the illegal payment or has supervisory authority over the person that ordered or caused the illegal payment.

3. The public official, employee or agent who ordered or caused the illegal payment, including a payment ordered or caused to be made without authorization of law.

C. A public official, employee or agent of this state, a political subdivision of this state or a budget unit who is charged with collecting, receiving, safekeeping, transferring or disbursing public monies may be held personally liable for an illegal payment of public monies, including payment made without authorization of law.

D. A public official, employee or agent of this state, a political subdivision of this state or a budget unit who is responsible for disbursing, collecting, receiving, safekeeping or transferring public monies pursuant to a warrant or other form of claim that does not originate from the public official, employee or agent making the disbursal may not be held personally liable for illegal payments made pursuant to such warrants or other claims unless the public official, employee or agent knew or should have known that a warrant or other claim would result in an illegal payment of public monies.

E. An action brought pursuant to this article is subject to title 12, chapter 7, article 2. If the action is brought by the attorney general, the action must be brought within five years after the date an illegal payment was ordered and section 12-821.01 does not apply to the action.

B. F. As used in For the purposes of this section, "public monies" includes all monies coming into the lawful possession, custody or control of budget units, state agencies, boards, commissions or departments or a state officer, employee or agent in his an official capacity, and all monies coming into the lawful possession, custody or control of a tax‑supported political subdivision or an officer, employee or agent of a tax-supported political subdivision in an official capacity irrespective of the source from which, or the manner in which, the monies are received. END_STATUTE

Sec. 4. Section 35-213, Arizona Revised Statutes, is amended to read:

START_STATUTE35-213. Failure of attorney general to bring action; action by taxpayer; bond; amount of recovery and attorney fees

A. An action to recover illegally paid public monies pursuant to section 35-212, subsection B, PARAGRAPH 1 or 3 may be brought only by the attorney general.

A. B. A taxpayer of this state may request, in writing, the attorney general to institute an action pursuant to section 35-212. A request made regarding a political subdivision may be made only by a taxpayer of the political subdivision that is the subject of the request. A request made regarding a county may only be submitted twenty-one days after a request is made to the county attorney pursuant to section 11-642. If, for sixty days after the request made by a the taxpayer of the state in writing, the attorney general fails to institute an action as provided in section 35‑212, any the taxpayer of the state who made the request may institute the action pursuant to section 35-212, subsection A or subsection B, paragraph 2 in his the taxpayer's own name and at his the taxpayer's own cost with the same effect as if brought by the attorney general.

B. C. The person instituting the action shall execute a bond payable to the defendant in the action, conditioned that the plaintiff will prosecute the action with diligence and finality or and will pay all damages sustained by the defendant by reason of the action and all costs incurred therein in the action, including attorney fees awarded to the defendant.

C. D. If the taxpayer prevails in the action, The court shall allow him may award the prevailing party costs and reasonable attorney's attorney fees, not to exceed forty per cent percent of the amount sought to be recovered or saved to the state, as the case may be or political subdivision. END_STATUTE