ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fourth Legislature

Second Regular Session

Senate: 3rd Read 27-3-0-0
House: 3rd Read 59-1-0-0


SB 1690: budget procedures; budget reconciliation; 2020-2021.

(Substituted for HB 2907)

Sponsor:  Senator Fann, LD 1

Transmitted to the Governor

Overview

Contains budget procedures and reconciliation provisions needed for implementing the FY 2021 budget.

History

The Arizona Legislature adopts a budget for each fiscal year (FY) that contains general appropriations.  Article IV, Section 20, Part 2, Constitution of Arizona, requires the General Appropriations Act (feed bill) to contain only appropriations for the different state departments, state institutions, public schools and interest on public debt.  Statutory changes necessary to reconcile the appropriations made in the feed bill and other changes are drafted into separate bills known as Budget Reconciliation Bills (BRBs).  These BRBs are prepared according to subject area.

Provisions

1.    ☐ Prop 105 (45 votes)	     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes)	☐ Fiscal NoteEstablishes the Motor Vehicle Pool Consolidation Fund on July 1, 2021, rather than July 1, 2020. (Sec. 1)

2.    Establishes the Contingency and Safety Net Fund (Fund) that consists of monies appropriated to the Fund and received by the Office of the Governor from any lawful private or public source. (Sec. 2)

3.    Specifies that the Office of the Governor administers the Fund and that the monies are continuously appropriated and exempt from lapsing. (Sec. 2)

4.    Allows the Office of the Governor to accept and spend local, state and federal monies and private grants, gifts, contributions and devises to assist in carrying out the Fund. (Sec. 2)

5.    Stipulates that the monies in the Fund may only be spent after the Governor's declaration of a state of emergency and only for the following forms of economic assistance during the state of emergency:

a)    Housing assistance, including payments to prevent foreclosure or eviction.

b)    Monies for entities to provide services for homeless people, including shelter, clothing, food and transportation.

c)    Economic assistance to small businesses with less than 50 employees, health care providers and nonprofit organizations.

d)    Monies for food bank operations. (Sec. 2)

6.    Requires the Office of the Governor to notify the following people before spending monies in the fund on the intended use of the monies:

a)    The President of the Senate;

b)    The Speaker of the House of Representatives; and

c)    The Joint Legislative Budget Committee. (Sec. 2)

7.    Directs the monies in the Fund to be used to supplement and not supplant any monies allocated by the federal government for economic assistance during a state of emergency. (Sec. 2)

8.    Appropriates $50 million from the state General Fund in FY 2020 to the Fund, in addition to any other appropriations made in FY 2020. (Sec. 8)

9.    States that any unexpended and unencumbered monies appropriated to the Fund revert to the state General Fund on June 30, 2021. (Sec. 8)

10.  Requires reimbursement of incurred expenses by counties to administer the 2020 presidential preference election to be made, as determined by the Secretary of State and prescribed in the FY 2021 feed bill. (Sec. 3)

11.  Stipulates that any unrestricted federal monies received beginning July 1, 2020 through June 30, 2021 must be deposited in the state General Fund and used to pay essential governmental services. (Sec. 4)

12.  States that the Capital Outlay Stabilization Fund rental rates for state-owned buildings in FY 2021 are $17.87 per square foot for office space and $6.43 per square foot for storage space. (Sec. 5)

13.  Specifies that the Legislature is not required to appropriate monies to or transfer monies from the Budget Stabilization Fund in FY 2021 through FY 2023. (Sec. 6)

14.  Contains a legislative intent clause. (Sec. 7)

15.  Applies the deposit of unrestricted federal monies retroactive to July 1, 2020. (Sec. 4)

16.  Contains a retroactivity clause of July 1, 2020 for the establishment of the Motor Vehicle Pool Consolidation Fund. (Sec. 9)

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20.                    SB 1690

21.  Initials SJ  Page 0 Transmitted

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