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ARIZONA STATE SENATE
Fifty-Fifth Legislature, First Regular Session
AMENDED
exchange
teachers; technical correction
(NOW: elderly assistance fund; state treasurer)
Purpose
Effective January 1, 2022, establishes the Statewide Elderly Assistance Fund (Fund) and appropriates $4,600,000 from the state General Fund (state GF) in FY 2022 to the Fund to reduce primary school district taxes for qualified individuals in every county.
Background
An elderly assistance fund must be established in a county with a population greater than 2,000,000 persons. An elderly assistance fund is administered by the county treasurer and must be used to reduce the primary school district taxes for qualified individuals. To qualify, an individual must live in an organized school district in the county and be approved for the property valuation protection option established in the Arizona Constitution (A.R.S. § 42-17401).
To be eligible for a property valuation protection option, an Arizona resident must: 1) be 65 years old or older; 2) have an individual annual income of less than 400 percent of the supplemental security income benefit rate if the property is a single owner; 3) have a combined annual income of less than 500 percent of the supplemental security income benefit rate if the property is owned by two or more individuals; and 4) have used the property as their primary residence for at least two years. If the county assessor approves a property valuation protection option, the value of the primary residence must remain fixed as long as the owner remains eligible (Ariz. Const. art. 9 § 18).
The State Treasurer receives and securely keeps all state monies that are not assigned to another entity. The State Treasurer must file and keep documentation of deposited monies and keep an account of all monies received and distributed (A.R.S. § 41-172). The State Treasurer may invest and reinvest trust and treasury monies into repurchase agreements, bonds, securities and other financial resources (A.R.S. § 35-313).
The strike-everything amendment to S.B. 1500 appropriates $4,600,000 from the state GF in FY 2022 to the Fund.
Provisions
1. Establishes the Fund to be administered by the State Treasurer for the purpose of reducing primary school district taxes for qualified individuals.
2. Specifies that the Fund consists of legislative appropriations and that monies in the Fund are continuously appropriated.
3. Requires the State Treasurer to distribute monies in the Fund to each county treasurer to reduce the primary school district taxes of qualified individuals in that county.
4. Requires each county treasurer, by June 30 of each year, to report the total number of qualified individuals who live in the county to the State Treasurer.
5. Prohibits the State Treasurer from distributing monies from the Fund to a county for the following fiscal year if the county treasurer fails to provide the report on qualified individuals by June 30.
6. Requires the State Treasurer to annually determine:
a) the total amount of monies in the Fund;
b) the total number of qualified individuals as reported by the county treasurers; and
c) the total amount of monies to distribute to each county treasurer to proportionately reduce the primary school district taxes.
8. Directs the State Treasurer to invest and divest monies in the Fund and requires monies earned from investment to be credited to the Fund.
9. Appropriates $4,600,000 from the state GF in FY 2022 to the Fund to reduce primary school district taxes for qualified individuals.
10. Repeals the current Maricopa County Elderly Assistance Fund administered by the Maricopa County Treasurer.
11. Defines qualified individual as an individual who lives in an organized school district and is approved for the property valuation protection option established in the Arizona Constitution.
12. Exempts the monies in the Fund from lapsing.
13. Exempts the appropriation from lapsing.
14. States the Legislature's intent is that the appropriation be considered ongoing.
15. Makes technical and conforming changes.
16. Becomes effective on January 1, 2022.
Amendments Adopted by Committee
ˇ Adopted the strike-everything amendment.
Amendments Adopted by Committee of the Whole
ˇ Clarifies that the State Treasurer is prohibited from distributing monies from the Fund to a county for the following fiscal year if the county treasurer fails to provide the report on qualified individuals by June 30.
Senate Action
APPROP 2/23/21 DPA/SE 10-0-0
Prepared by Senate Research
February 26, 2021
LMM/DH/gs