 |
ARIZONA STATE SENATE
Fifty-Fifth Legislature, First Regular Session
county treasurer; investment earnings; operation
Purpose
Allows a county, city or town treasurer (treasurer) to deduct a monthly management fee from allocated pooled income earnings for the annual operation of the treasurer's office.
Background
The treasurer must allocate pooled income earnings on a pro rata basis to agency pool participants. An agency pool participant is a subdivision or an entity of a subdivision that has monies maintained by the treasurer and that has the authority to draw negotiable instruments or make other disbursements from monies that the treasurer holds for the subdivision. Involuntary pool participants must have the income earnings for their monies deposited in the general fund of the collecting entity. An involuntary pool participant is a subdivision that only receives the principal ratio of monies collected, which must be distributed on a specific date and the interest earned between the time of collection and other statutory requirements reverts to the general fund of the collecting entity (A.R.S. §§ 35-321 and 35-327).
Treasurer includes the treasurer or officer exercising the functions of treasurer of any county, noncharter city or town and excludes the State Treasurer. Charter cities may elect to operate under the statutes governing the investment of public monies and pooled income earnings (A.R.S. § 35-321).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Allows a treasurer to deduct a monthly management fee in an amount determined jointly by the treasurer and the county board of supervisors to be paid from allocated pooled income earnings.
2. Requires the management fee to be used to operate the treasurer's office.
3. Requires any management fee collected in excess of the annual budget of the county treasurer's office to be deposited in the county general fund.
4. Makes a conforming change.
5. Becomes effective on the general effective date.
Prepared by Senate Research
February 8, 2021
MG/gs