SB1550 - 541R

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

Section 1. Title 16, chapter 1, article 5, Arizona Revised Statutes, is amended by adding section 16-168.01, to read:

START_STATUTE16-168.01. County contributions to the voter registration system fund; exemption

The county contributions to the voter registration system fund is established consisting of monies transferred from counties to the secretary of state pursuant to an agreement between a county and the secretary of state relating to developing and administering the statewide database of voter registration information required by section 16-168. The secretary of state shall administer the fund. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations. Monies in the fund are continuously appropriated to the secretary of state to develop and administer the statewide database of voter registration information. END_STATUTE

Sec. 2. Section 18-305, Arizona Revised Statutes, is amended to read:

START_STATUTE18-305. Reports; electronic submission; exception; posting

A. Notwithstanding any other law, state government agencies may submit all statutorily required reports and budget estimates electronically, except those required by section 35-113.

B. Each state government agency shall post all statutorily required reports and budget estimates on the state government's agency's website.

C. Each state government agency shall consult with the secretary of state to ensure that the Arizona state library, archives and public records receives an adequate number of copies of the statutorily required reports and budget estimates in a format that is agreed on for the purposes of the state archives pursuant to section 41‑151.08.

D. Each state government agency that maintains a generally accessible internet website, or for which a generally accessible website is maintained, shall include a link on that website to the website of the ombudsman-citizens aide and a statement that reads as follows: "The ombudsman-citizens aide helps citizens to resolve ongoing issues with state agencies. END_STATUTE

Sec. 3. Section 18-401, Arizona Revised Statutes, is amended to read:

START_STATUTE18-401. Information technology fund

A. The information technology fund is established for use by the department and the committee. Monies in the fund are subject to legislative appropriation.

B. State agencies that are subject to section 41‑750, all budget units and the legislative and judicial branches of state government shall contribute a pro rata share of the overall cost of information technology services provided by the department or committee. The pro rata share is payable by payroll fund source, and the resultant amount shall be deposited in the information technology fund. For all budget units and the legislative and judicial branches of state government, the pro rata share is .30 .43 percent of the total payroll. Total payroll includes all fund sources, including the state general fund, federal monies, special revenue funds, intergovernmental revenue monies, trust funds and other payroll fund sources.

C. 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 information technology fund.

D. Notwithstanding section 35‑190, monies in the information technology fund do not revert to the state general fund at the end of each fiscal year. END_STATUTE

Sec. 4. Section 18-421, Arizona Revised Statutes, is amended to read:

START_STATUTE18-421. State web portal fund; exemption

A. The state web portal fund is established and is subject to legislative appropriation. The department shall administer the fund. The state web portal fund shall consist of:

1. Monies appropriated to the fund by the legislature.

2. Any web portal usage fees collected by this state or under any agreement between this state and an independent contractor providing services for the common web portal minus the amount of fees collected pursuant to section 28‑446 for deposit in the Arizona highway user revenue fund.

3. Monies received from private grants or donations if designated for the fund by the grantor or donor.

4. Monies received from the federal government by grant or otherwise to assist this state in providing any common web portal projects.

B. Monies in the state web portal fund may be used for:

1. Improving or expanding this state's information technology services and projects, including the common web portal.

2. Operating costs of the government transformation office.

C. If this state chooses to use an independent contractor to provide services for the state web portal, the selection of the independent contractor may be made using a competitive bid process.

D. Monies in the state web portal fund are exempt from the provisions of section 35‑190 relating to lapsing of appropriations. END_STATUTE

Sec. 5. Title 28, chapter 2, article 4, Arizona Revised Statutes, is amended by adding section 28-414, to read:

START_STATUTE28-414. Motor vehicle pool consolidation fund; exemption

Beginning July 1, 2020, the motor vehicle pool consolidation fund is established consisting of monies transferred from the motor vehicle pool revolving fund established by section 41-804. The department of transportation shall administer the fund. Monies in the fund are subject to legislative appropriation and shall be used to reimburse the department of transportation for costs related to implementing an intergovernmental agreement with the department of administration to operate the state motor vehicle fleet established pursuant to section 41-803. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations. END_STATUTE

Sec. 6. Section 35-112, Arizona Revised Statutes, is amended to read:

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

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

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

Sec. 7. Section 35-113, Arizona Revised Statutes, is amended to read:

START_STATUTE35-113. Submission of budget estimates

The administrative head of each budget unit, not later than September 1 of each year or at a later date not to exceed thirty days after September 1 if approved by the director of the governor's office of strategic planning and budgeting, shall submit to the governor, with five two copies, estimates of the financial requirements and of receipts, including appropriated and nonappropriated monies in no less detail than the state general fund, of the budget unit for the next fiscal year. The estimates shall be on the forms and in the manner prescribed by the governor with explanatory data that may be required, together with additional information the head of the budget unit desires to submit. The estimates submitted shall bear the approval of the administrative head of the budget unit. END_STATUTE

Sec. 8. Section 35-173, Arizona Revised Statutes, is amended to read:

START_STATUTE35-173. Definition of allotment schedule; appropriations; requirements; limits; exceptions

A. An "Allotment schedule" means a detailed plan of expenditures for a full fiscal year within a budget program or expenditure class.

B. Before monies from an authorized appropriation, or any other source, can be obligated, an allotment schedule must be approved and established by the department of administration and the governor's office of strategic planning and budgeting. The allotment schedule shall be based on the estimated annual requirement and shall distribute the available spending authority to cover the entire fiscal year's operations.

C. With the exception of the department of administration, the budget unit, may, upon on approval of the director of the department of administration and the governor's office of strategic planning and budgeting, may:

1. Transfer spending authority from one expenditure class to another.

2. Transfer spending authority between and within programs if spending authority is appropriated to the budget unit by programs.

D. A transfer within a budget unit of spending authority appropriated for land acquisition, capital projects or building renewal shall be permissible is allowed only on approval of the joint committee on capital review.

E. No A transfer to or from personal services or employee related expenditures from or to any other budget program or expenditure class shall be permitted is not allowed unless recommended by the joint legislative budget committee and approved by the director of the department of administration and the governor's office of strategic planning and budgeting, except that the director of the department of administration may transfer amounts equal to the gross payroll and related employee expenses of a budget unit from the monies of a budget unit available for this purpose to payroll imprest accounts for the purpose of paying employees of the budget unit and disbursing related employee expenses.

F. A transfer of spending authority within the department of administration shall be made only with the approval of the joint legislative budget committee and the governor's office of strategic planning and budgeting, except as provided in subsection E of this section.

G. The provisions of This section shall does not apply to the universities. END_STATUTE

Sec. 9. Section 41-704, Arizona Revised Statutes, is amended to read:

START_STATUTE41-704. Emergency telecommunication services; administration; annual report; revolving fund

A. The director of the department of administration shall:

1. Adopt rules and procedures for administering and disbursing monies deposited in the emergency telecommunication services revolving fund, and at least quarterly review and approve requests by political subdivisions of this state for payment for operating emergency telecommunication service systems.

2. In fiscal year 2001‑2002 and every two years thereafter, recommend to the legislature the amount of the telecommunication services excise tax that will be required during the following two fiscal years for the purposes of this section, with supporting documentation and information. The legislature shall review the recommendation and take legislative action regarding the recommendation.

3. On or before December 1 of each YEAR, submit a report to the director of the joint legislative budget committee containing:

(a) The department's expenditure plan for the current fiscal year for the emergency telecommunication services revolving fund established by this section.

(b) The status of the department's implementation of improvements to the 911 emergency system.

B. An The emergency telecommunication services revolving fund is established to be administered by the director. The fund shall be used for:

1. Necessary or appropriate equipment or service for implementing and operating emergency telecommunication services through political subdivisions of this state. Priority shall be given to establishing emergency telecommunication services in those areas of the state that are without emergency telecommunication services.

2. Necessary or appropriate administrative costs or fees for consultants' services, not to exceed five per cent percent of the amounts deposited annually in the revolving fund. The department may use up to two‑thirds of the five per cent percent of the amounts deposited annually in the revolving fund for administrative costs. The remainder of the five per cent percent may be allocated for local network management of contracts with public safety answering points for emergency telecommunication services.

3. Monthly recurring costs of emergency telecommunication services, including expenditures for capital, maintenance and operation purposes.

4. A wireless carrier's costs associated with the provision, development, design, construction and maintenance of the wireless emergency telecommunication services in an amount that the wireless carrier has not recovered through the deduction mechanism specified in federal law.

C. At the end of each fiscal year, any unexpended monies in the fund, including interest, shall be carried over and do not revert to the state general fund but shall be applied to the extent possible to reduce the levy under section 42‑5252, subsection A for the following fiscal year. END_STATUTE

Sec. 10. Section 41-740.01, Arizona Revised Statutes, is amended to read:

START_STATUTE41-740.01. Arizona financial information system collections fund; purpose; transaction fee; joint legislative budget committee; annual report

A. The Arizona financial information system collections fund is established consisting of monies collected pursuant to subsection C of this section. The department shall administer the fund. Monies in the fund are subject to legislative appropriation. Monies in the fund are exempt from the provisions of section 35‑190 relating to lapsing of appropriations.

B. Monies in the fund shall be used to reimburse the department for the costs of operating the Arizona financial information system.

C. The department may charge a transaction fee to each state agency that uses the Arizona financial information system. The department shall submit a proposed transaction fee to the joint legislative budget committee for review before establishing or changing the fee. On or before December 1 of each year, the department shall submit a report to the joint legislative budget committee on the Arizona financial information system transaction count by agency and fund source. END_STATUTE

Sec. 11. Section 41-5356, Arizona Revised Statutes, is amended to read:

START_STATUTE41-5356. Duties of board; advisory board; annual report; board termination

A. The board shall:

1. Establish an industrial development authority under title 35, chapter 5 and, notwithstanding the requirements of section 35‑705, serve as the board of the industrial development authority.

2. Serve as the board of the greater Arizona development authority and have all powers and authority to take action on behalf of the greater Arizona development authority pursuant to chapter 18 of this title.

3. Serve as the board of the water infrastructure finance authority of Arizona and have all powers and authority to take action pursuant to title 49, chapter 8 regarding water infrastructure financing.

4. Approve the authority's budget.

5. Establish a water and infrastructure finance authority advisory board to advise the board of directors of the authority consisting of relevant state agency representatives and the following additional members:

(a) One member who represents a public water system that serves five hundred or more connections.

(b) One member who represents a public water system that serves less than five hundred connections.

(c) One member who represents a sanitary district in a county with a population of less than five hundred thousand persons.

(d) One member who represents a sanitary district in a county with a population of five hundred thousand or more persons.

(e) One member who represents a city or town with a population of less than fifty thousand persons.

(f) One member who represents a city or town with a population of fifty thousand or more persons.

(g) One member who represents a county with a population of five hundred thousand or more persons.

B. On or before October 1 of each year, the Industrial development authority shall submit a report to the president of the senate, the speaker of the house of representatives and the directors of the joint legislative budget committee and the governor's office of strategic planning and budgeting regarding the authority's revenues, expenditures and program activity for the previous fiscal year.

B. C. The board established pursuant to subsection A, paragraph 5 of this section ends on July 1, 2024 pursuant to section 41‑3103. END_STATUTE

Sec. 12. Section 42-1122, Arizona Revised Statutes, is amended to read:

START_STATUTE42-1122. Setoff for debts to state agencies, political subdivisions and courts; revolving fund; definitions

A. The department shall establish a liability setoff program by which refunds under sections 42‑1118 and 43‑1072 may be used to satisfy debts that the taxpayer owes to this state, a political subdivision or a court. The program shall comply with the standards and requirements prescribed by this section.

B. If a taxpayer owes an agency, political subdivision or court a debt, the agency, political subdivision or court, by November 1 of each year, may notify the department, furnishing at least the state agency, court or program identifier, the taxpayer's first name, last name, middle initial or middle name and suffix and social security number and any other available identification that the agency, political subdivision or court deems appropriate of the debtor as shown on the records of the agency, political subdivision or court, and the amount of the debt.

C. The department shall match the information submitted by the agency, political subdivision or court by at least two items of identification of the taxpayer with taxpayers who qualify for refunds under section 42‑1118 and shall:

1. Notify the agency, political subdivision or court of a potential match, the taxpayer's home address and any additional taxpayer identification numbers used by the taxpayer. Even if the taxpayer is not entitled to a refund, the department of revenue shall provide to:

(a) The court, the clerk of the court and the department of economic security, for child support and spousal maintenance purposes only, the home address of a taxpayer whose debt for overdue support is referred for setoff and any additional taxpayer identification numbers used by the taxpayer.

(b) The court the home address and any additional taxpayer identification numbers used by the taxpayer whose debt for a court obligation is referred for setoff and who is identified by the court as a probationer on absconder status.

2. Request final agency, political subdivision or court confirmation in writing or electronically as determined by the department within ten days of after the match and of the continuation of the debt. If the agency, political subdivision or court fails to provide confirmation within forty‑five days after the request, the department shall release the refund to the taxpayer.

D. An agency, political subdivision or court may submit updated information, additions, deletions and other changes on a quarterly or more frequent basis, at the convenience of the agency, political subdivision or court.

E. On confirmation pursuant to subsection C, paragraph 2 of this section, the agency or political subdivision shall notify the taxpayer, by mail to the most recent physical address or electronically to the most recent e-mail address provided by the taxpayer to the department:

1. Of the intention to set off the debt against the refund due.

2. Of the taxpayer's right to appeal to the appropriate court or to request a review by the agency or political subdivision pursuant to agency or political subdivision rule, within thirty days after the physical or electronic mailing of the notice.

F. In addition, the taxpayer shall receive notice that if the refund is intercepted in error through no fault of the taxpayer, the taxpayer is entitled to the full refund plus interest and penalties from the agency, political subdivision or court as provided by subsection O of this section.

G. The basis for a request for review as provided by subsection E of this section shall not include the validity of the claim if its validity has been established at an agency hearing, by judicial review in a court of competent jurisdiction in this or any other state or by final administrative decision and shall state with specificity why the taxpayer claims the obligation does not exist or why the amount of the obligation is incorrect.

H. If, within thirty days after the physical or electronic mailing of the notice, the taxpayer requests a review by the agency or political subdivision or provides the agency or political subdivision with proof that an appeal has been taken to the appropriate court, the agency or political subdivision shall immediately notify the department and the setoff procedure shall be stayed pending resolution of the review or appeal.

I. If the department does not receive notice of a timely appeal, it shall draw and deliver a warrant in the amount of the available refund up to the amount of the debt in favor of the agency or political subdivision and notify the taxpayer of the action by physical mail or e-mail.

J. Subsections E, G, H and I of this section do not apply to a debt imposed by a court except that the taxpayer shall receive notice of the intent to set off the debt against the refund due and the right to appeal to the court that imposed the debt within thirty days after the physical or electronic mailing of the notice. The basis for the request for review shall not include the validity of the claim and shall state with specificity why the taxpayer claims the obligation does not exist or why the obligation is incorrect.

K. If the setoff accounts for only a portion of the refund due, the remainder of the refund shall be sent to the taxpayer. A court shall not use this section to satisfy a judgment or payment of a fine or civil penalty until the judgment has become final or until the time to appeal the imposition of a fine or civil penalty has expired.

L. A revolving fund is established to recover and pay the cost of operating the setoff program under this section. Monies in the fund may also be used for the general operating expenses of the DEPARTMENT. The department may prescribe a fee to be collected from each agency, political subdivision or court using the setoff procedure or from the taxpayer, and the amount shall be deposited in the fund. The amount of the fee shall reasonably reflect the actual cost of the service provided. Monies in the revolving fund are subject to legislative appropriation.

M. If agencies, political subdivisions or courts have two or more delinquent accounts for the same taxpayer, the refund may be apportioned among them pursuant to rules prescribed by the department of revenue, except that a setoff to the department of economic security for overdue support has priority over all other setoffs.

N. If the refund is insufficient to satisfy the entire debt, the remainder of the debt may be collected by the agency, political subdivision or court as provided by law or resubmitted for setoff against subsequent refunds.

O. In the case of a refund that is intercepted in error through no fault of the taxpayer under this section, the taxpayer shall be reimbursed by the agency, political subdivision or court with interest pursuant to section 42‑1123. In addition, if all or part of a refund is intercepted in error due to an agency, political subdivision or court incorrectly identifying a taxpayer as a debtor through no fault of the taxpayer, the agency, political subdivision or court shall also pay the taxpayer a penalty as follows:

1. If the agency, political subdivision or court reimburses the taxpayer sixteen through one hundred eighty days after the agency, political subdivision or court receives notification that the refund was erroneously intercepted and the refund was received by the agency, political subdivision or court, the penalty is equal to ten percent of the amount of the refund that was intercepted.

2. If the agency, political subdivision or court reimburses the taxpayer one hundred eighty‑one through three hundred sixty-five days after the agency, political subdivision or court receives notification that the refund was erroneously intercepted and the refund was received by the agency, political subdivision or court, the penalty is equal to fifteen percent of the amount of the refund that was intercepted.

3. If the agency, political subdivision or court fails to reimburse the taxpayer within three hundred sixty-five days after the agency, political subdivision or court receives notification that the refund was erroneously intercepted and the refund was received by the agency, political subdivision or court, the penalty is equal to twenty percent of the amount of the refund that was intercepted.

P. The time periods set forth in subsection O of this section shall be stayed during a review of an agency decision pursuant to section 25‑522.

Q. Except as is reasonably necessary to accomplish the purposes of this section, the department shall not disclose under this section any information in violation of chapter 2, article 1 of this title.

R. An agency, political subdivision or court shall not enter into an agreement with a debtor for:

1. The assignment of any prospective refund to the agency, political subdivision or court in satisfaction of the debt.

2. Payment of the debt if the debt has been confirmed to the department for setoff under subsection C, paragraph 2 of this section.

S. If a tax refund is based on a joint income tax return and the department of economic security receives a written claim from the nonobligated spouse within forty‑five days after the notice of a setoff for overdue child support, the setoff only applies to that portion of the refund due to the obligor. The nonobligated spouse shall provide to the department of economic security copies of both the obligated and nonobligated spouse's federal W‑2 forms and evidence of estimated tax payments supporting the proportionate share of each spouse's payment of tax. The department of economic security shall retain the amount of the setoff refund due to the obligated spouse determined by a proration based on the tax payments of each spouse by estimated tax payment or tax withheld from wages.

T. For the purposes of this section:

1. "Agency" means:

(a) A department, agency, board, commission or institution of this state.

(b) A corporation that is under contract with this state and that provides a service that would otherwise be provided by a department, agency, board, commission or institution of this state, if the contract specifically authorizes participation in the liability setoff program and the attorney general's office has reviewed the contract and approves such authorization. The participation in the liability setoff program shall be limited to debt related to the services the corporation provides for or on behalf of this state.

2. "Court" means all courts of record, justice courts and municipal courts.

3. "Debt":

(a) Means an amount over fifty dollars $50 that is owed to an agency, political subdivision or court by a taxpayer and may include a judgment in favor of this state or a political subdivision of this state, interest, penalties, charges, costs, fees, fines, civil penalties, surcharges, assessments, administrative charges or any other amount.

(b) Includes monies that are owed by a taxpayer for overdue support and that are referred to the department of economic security or the clerk of the court for collection.

4. "Overdue support" means a delinquency in court ordered payments for spousal maintenance or support of a child or for spousal maintenance to the parent with whom the child is living if child support is also being enforced pursuant to an assignment or application filed under 42 United States Code section 654(6) or other applicable law.

5. "Political subdivision" means a county or an incorporated city or town in this state. END_STATUTE

Sec. 13. Unrestricted federal monies; essential government services; retroactivity

A. Any unrestricted federal monies received by this state beginning July 1, 2019 through June 30, 2020 shall be deposited in the state general fund. The monies shall be used to pay essential governmental services.

B. This section applies retroactively to from and after June 30, 2019.

Sec. 14. Rental rates; state-owned buildings; fiscal year 2019‑2020

Notwithstanding section 41‑792.01, subsection D, Arizona Revised Statutes, the capital outlay stabilization fund rental rates for state‑owned buildings in fiscal year 2019‑2020 are $17.87 per square foot for office space and $6.43 per square foot for storage space.

Sec. 15. Budget stabilization fund; exceptions

Notwithstanding section 35‑144, Arizona Revised Statutes, for fiscal years 2019‑2020, 2020‑2021 and 2021-2022 the legislature is not required to appropriate monies to or transfer monies from the budget stabilization fund.

Sec. 16. State motor vehicle fleet operations; transition; reporting requirements

On or before October 1, 2019 and October 1, 2020, the department of administration and the department of transportation shall submit a joint report to the joint legislative budget committee on transitioning the operation of the state motor vehicle fleet established pursuant to section 41-803, Arizona Revised Statutes, from the department of administration to the department of transportation. The report shall identify suggested legislative changes that are required to fully implement the transition.

Sec. 17. State treasurer's management fund; transfer

Any unexpended and unencumbered monies remaining in the state treasurer's management fund established by section 35-326.01, Arizona Revised Statutes, as amended by Laws 2019, chapter 154, section 2, are transferred to the state treasurer's operating fund established by section 35-316, Arizona Revised Statutes, as amended by Laws 2019, chapter 154, section 1, on the effective date of this act.

Sec. 18. PSPRS reporting requirements

The reports by the public safety personnel retirement system that are due by December 31 of each year pursuant to sections 38-803, 38‑832, 38‑840.01, 38-848, 38-848.02, 38-866 and 38-883, Arizona Revised Statutes, are due on or before December 1 of each year in 2019 and 2020.