Assigned to FIN                                                                                                  AS PASSED BY COMMITTEE

 


 

 

 


ARIZONA STATE SENATE

Fifty-Fifth Legislature, First Regular Session

 

AMENDED

FACT SHEET FOR S.B. 1298

 

fire districts; pension liability; financing

Purpose

An emergency measure that allows a fire district board to lease, lease-purchase or grant a lien on any of its present or future property to pay amounts to the Public Safety Personnel Retirement System (PSPRS), State Treasurer-managed pension prefunding plan investment accounts or the Arizona Employers' Pension Prefunding Plan (AEPP Plan).

Background

Fire districts are governed by three-member or five-member boards, depending on the population of the fire district. A fire district board may: 1) employ personnel; 2) finance the acquisition of property; 3) enforce fire code; and 4) enter into intergovernmental agreements (A.R.S. § 48-805).

The State Treasurer may invest and reinvest pension prefunding plan monies in equity securities and must be kept separate from other funds. Pension prefunding plan monies are for the purpose of allowing an employer that provides a defined benefit (DB) pension plan to prefund the employers required DB pension payments (A.R.S. § 35-314.04).

The AEPP Plan is a special trust fund that allows an employer who participates in PSPRS, the Elected Officials Retirement Plan or the Correction Officers Retirement Plan to prefund required pension contributions (A.R.S. § 38-932).

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1.   Allows a fire district board to lease, lease-purchase or grant a lien on any of its present or future property to pay amounts to PSPRS, State Treasurer-managed pension prefunding plan investment accounts or the AEPP Plan and to create reserves to supplement payments deemed necessary by the fire district board. 

2.   Makes technical and conforming changes.

3.   Becomes effective on signature of the Governor, if the emergency clause is enacted.

Amendments Adopted by Committee

· Adds an emergency clause.

Senate Action

FIN                 2/10/21      DPA     6-2-2

Prepared by Senate Research

February 10, 2021

MG/FDR/gs