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ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
AMENDED
appropriation; border fence construction
(NOW: revenue distribution; border security)
Purpose
Requires the State Treasurer, beginning the month following the general effective date, to distribute $335,000,000 proportionately for each month remaining in the fiscal year from the portion of the transaction privilege tax (TPT) revenues not designated as the distribution base to the Border Security Fund (Fund).
Background
The Fund consists of legislative appropriations, gifts, grants and other donations and is administered by the Arizona Department of Emergency and Military Affairs (DEMA). Fund monies may be used for: 1) preventing human trafficking; 2) preventing the entry into the United States of illegal aliens, terrorists, instruments of terrorism, contraband, narcotics and controlled substances; 3) planning, designing, constructing and maintaining transportation, technology and commercial vehicle inspection infrastructure near the international border; 4) clearing nonindigenous plants; 5) administering and managing the construction and maintenance of a physical border fence; 6) awarding grants to counties to provide housing in secure facilities; and 7) awarding grants to counties for prosecuting individuals that commit any of the outlined crimes (A.R.S. § 26-105).
In FY 2021, $55,000,000 was appropriated from the state General Fund (state GF) to the Fund (JLBC).
H.B. 2317 distributes $335,000,000 of TPT revenues to the Fund.
Provisions
1. Requires the State Treasurer, beginning the month following the general effective date, to distribute $335,000,000 proportionately for each month remaining in the fiscal year from the portion of the TPT revenues not designated as the distribution base to the Fund.
2. Requires DEMA to use the monies to construct and maintain a physical border fence, purchase or install border security technologies, including cameras, sensors, drones and software, and pay associated administrative costs.
3. Requires DEMA to use existing infrastructure and fence materials for the construction of the physical border fence when feasible.
4. Requires DEMA, by July 1, 2023, to report to the Joint Legislative Budget Committee (JLBC) on the use of existing infrastructure and fence materials for the construction of the physical border fence.
5. Requires DEMA, in consultation with the Arizona Department of Homeland Security and Department of Public Safety, to submit quarterly reports to JLBC on the use of the monies.
6. Declares the Legislature's intent that the TPT distributions not impact the portion that cities, towns and counties receive.
7. Becomes effective on the general effective date.
Amendments Adopted by Committee of the Whole
1. Removes the $150,000,000 appropriation from the state GF in FY 2023 to the Fund.
2. Requires the State Treasurer to distribute $335,000,000 in TPT revenues to the Fund.
3. Requires DEMA to use the monies to construct and maintain a physical border fence and purchase and install border security technologies.
4. Requires DEMA to report to JLBC on the use of existing infrastructure and the use of the monies.
5. Declares the Legislature's intent that the TPT distribution not impact the portion that cities, towns and counties receive.
6. Makes technical and conforming changes.
House Action Senate Action
MAPS 1/31/22 DP 8-7-0-0 APPROP 3/15/22 DP 6-4-0
APPROP 2/2/22 DP 8-5-0-0
3rd Read 2/24/22 31-28-1
Prepared by Senate Research
July 5, 2022
LMM/IJ/slp