HB2554 - 572R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 35-111, Arizona Revised Statutes, is amended to read:

START_STATUTE35-111. Executive budget

Not later than five days after the first regular session of the legislature convenes, the governor shall submit to the legislature a budget containing a complete plan of expenditures proposed to be made before the close of the next two ensuing fiscal year years for budget units and all monies and revenues estimated to be available therefor, together with an explanation of the basis of the estimates and recommendations as to proposed legislation, if any, that the governor deems necessary to provide revenues sufficient to meet the proposed expenditures. The plan shall delineate each fiscal year separately. END_STATUTE

Sec. 2. Section 35-113, Arizona Revised Statutes, is amended to read:

START_STATUTE35-113. Submission of budget estimates

The administrative head of each budget unit, not later than September 1 of each even-numbered year or at a later date not to exceed thirty days after September 1 if approved by the director of the governor's office of strategic planning and budgeting, shall submit to the governor, with two copies, estimates of the financial requirements and of receipts, including appropriated and nonappropriated monies in no less detail than the state general fund, of the budget unit for the next two ensuing fiscal year years. The estimates shall include a detailed estimate of the cost to the budget unit in the next two ensuing fiscal year years attributable to a county's, city's or town's establishment of a minimum wage if that minimum wage exceeds the minimum wage established by this state pursuant to section 23-363. The estimates shall be on the forms and in the manner prescribed by the governor with explanatory data that may be required, together with additional information the head of the budget unit desires to submit. The estimates submitted shall bear the approval of the administrative head of the budget unit. END_STATUTE

Sec. 3. Section 35-114, Arizona Revised Statutes, is amended to read:

START_STATUTE35-114. Continuous financial planning; submission of tentative budget report; appropriations estimate report

A. The governor shall have in continuous process of preparation and revision a tentative budget report for the next two ensuing fiscal year years for budget units. On receipt of the estimates of the several budget units, the governor shall check the estimates with information available to the governor and shall make further inquiries and investigations and recommend changes in the tentative budget report the governor deems warranted.

B. The governor's office of strategic planning and budgeting in consultation with the joint legislative budget committee staff shall determine and report to the governor and the legislature an estimate of appropriations subject to the limit imposed by article IX, section 17, Constitution of Arizona. The report shall be published by February 15 of each odd-numbered year for the preceding fiscal year, for the current fiscal year and for the next two ensuing fiscal year years to reflect the budget recommendations of the governor. END_STATUTE

Sec. 4. Section 35-115, Arizona Revised Statutes, is amended to read:

START_STATUTE35-115. Contents of budget report

Each budget report required by section 35-114 shall include the following:

1. Summary statements of the financial condition of the state, including:

(a) A consolidated balance sheet showing all current assets and liabilities of the state at the close of the fiscal year last concluded.

(b) Summary statements of the actual income and expenditures of the fiscal year last concluded.

2. Schedules showing actual income from each source for the preceding fiscal year and the estimated income of the current fiscal year and for the next two ensuing fiscal year years for budget units. The statements of income and estimated income shall be itemized by source, by budget units and sources and by funds and shall show separately revenue from nonrevenue, all detailed by sources.

3. Detailed comparative statements of expenditures and requests for appropriations by funds, budget units, budget programs and budget classes, showing the expenditures for the fiscal year last concluded, the estimated expenditures for the current year, the request of each budget unit and the governor's recommendations for appropriations for the next two ensuing fiscal year years for budget units, all distributed according to budget programs and budget classes. In connection with each expenditure involving construction projects to be completed in one or more fiscal years, the budget report shall show the total estimated cost of each project and the amount recommended to be appropriated and expended in each ensuing fiscal year until completion of the project. The state capital improvement plan and the governor's recommendations concerning the plan shall be incorporated into the budget report.

4. A summary statement for each fund of the cash resources estimated to be available at the beginning of the next two ensuing fiscal year years for budget units and the estimated cash receipts for the next two ensuing fiscal year years for budget units, as compared with the total recommended amounts for appropriations for all budget programs and budget classes for the next two ensuing fiscal year years for budget units. If the total of the recommended expenditures exceeds the total of the estimated resources, the summary statement shall include recommendations as to how the deficiency is to be met and estimates of receipts from any proposed additional revenues.

5. A summary statement of expenditures and full-time equivalent positions for each retirement system, delineated by fund source.

6. Each two ensuing fiscal year years for budget units, a delineation of requested expenditures for administrative costs, including administrative personnel salaries and employee-related expenses and direct, indirect and shared costs for administrative office space, equipment, supplies and overhead. For the purposes of this paragraph, "administrative" means any supportive activity relating to management, supervision, budget or execution of the affairs of the budget unit as distinguished from activities relating to the budget unit's primary direct service functions. The process of delineation and determination of what constitutes administrative costs for each budget unit shall be developed by the governor's office of strategic planning and budgeting in consultation with the director and staff of the joint legislative budget committee.

7. A summary on one page or less providing selected performance measures of the budget unit for the previous fiscal year and the budget years. The performance measures may be expressed as service level measures on a unit cost basis and shall be established by the governor's office of strategic planning and budgeting in consultation with the director and staff of the joint legislative budget committee. END_STATUTE

Sec. 5. Section 35-116, Arizona Revised Statutes, is amended to read:

START_STATUTE35-116. Supervisory powers of governor relating to budget report; exceptions

A. Prior to submission of the budget report to the legislature, the governor shall examine the statements and estimates and shall make or cause to be made further investigations, with hearings before the governor, or the governor's designee, and shall make changes or revisions in appropriations requested that the governor deems advisable.

B. The legislature shall not be subject to the control of the governor in the preparation and submission of budgets, but shall submit its requests for appropriations for the two ensuing fiscal years to the governor for review by the legislature.

C. The judiciary shall not be subject to the control of the governor in the preparation and submission of budgets, but shall submit its requests for appropriations for the two ensuing fiscal year years to the governor for review by the legislature.

D. The appropriation requests of the Arizona board of regents and the department of transportation for the two ensuing fiscal year years may be revised by the governor, but the governor shall also submit the appropriation request prepared and submitted by the budget unit in its original form to the legislature for review. END_STATUTE

Sec. 6. Section 35-118, Arizona Revised Statutes, is amended to read:

START_STATUTE35-118. Transmission of budget report to legislature

The governor shall have the budget report prepared in such number of copies as he the governor deems necessary, and copies thereof of the budget report shall be transmitted to the legislature not later than five days after the first regular session of the legislature convenes. END_STATUTE

Sec. 7. Section 35-121, Arizona Revised Statutes, is amended to read:

START_STATUTE35-121. Format of appropriations

The format of the appropriations for the support and maintenance of state departments and institutions shall be for each two ensuing fiscal year years for all budget units, itemized separately for each fiscal year.END_STATUTE

Sec. 8. Section 35-122, Arizona Revised Statutes, is amended to read:

START_STATUTE35-122. Budget unit program lists; strategic plans; operating plans; compilation and publishing of master list

A. Consistent with instructions issued by the governor, the administrative head of each budget unit is responsible for developing a list of programs for the budget unit. For the purposes of this section, a program may include a subprogram as determined by the governor's office of strategic planning and budgeting and the staff of the joint legislative budget committee. In consultation with the staff of the joint legislative budget committee, the governor's office of strategic planning and budgeting may modify the list of programs submitted by each budget unit.

B. Consistent with instructions issued by the governor, the administrative head of each executive branch budget unit is responsible for developing a five-year strategic plan for the budget unit. The strategic plan shall be updated annually once every two years. The plan shall contain strategic issues, a mission statement, a description, strategies and resource assumptions. The resource assumptions shall include the number of full-time equivalent positions and budgetary data, including all funding sources categorized by state general fund, other appropriated funds, nonappropriated funds and federal funds that are required to support the strategic plan. The agency shall also provide an executive summary of the strategic plan. The executive summary shall not exceed five pages in length. The strategic plan, including the executive summary, shall be posted on the agency's official internet website and submitted to the governor's office of strategic planning and budgeting and to the staff of the joint legislative budget committee on or before January 1 of each odd-numbered year.

C. Consistent with instructions issued by the governor, the administrative head of each budget unit is responsible for:

1. Developing an operating plan for each program identified in subsection A of this section. The plan shall use the format required in subsection D of this section and be submitted to the governor's office of strategic planning and budgeting on or before September 1 of each even-numbered year. Each budget unit shall annually once every two years submit performance measures and budgetary data for the prior, current and two ensuing fiscal years.

2. Developing a mission statement, a description and strategic issues for the entire budget unit as part of the operating plan to be submitted to the governor's office of strategic planning and budgeting on or before September 1 of each even-numbered year. The mission statement, description and strategic issues shall be submitted at the same time to the staff of the joint legislative budget committee.

D. The operating plan shall include a mission statement, a description, goals, performance measures that emphasize results and budgetary data. The budgetary data shall include funding amounts, regardless of source.

E. The governor's office of strategic planning and budgeting shall compile the submissions required in subsection C, paragraphs 1 and 2 of this section and, not later than five days after the regular session of the legislature convenes of each even-numbered year, shall publish a master list of programs that are performed or overseen by state government. The master list shall include the program description, agency description, mission statement, strategic issues, goals, performance measures and budgetary data. END_STATUTE

Sec. 9. Section 38-737, Arizona Revised Statutes, is amended to read:

START_STATUTE38-737. Employer contributions; prepayment; definitions

A. Employer contributions shall be a percentage of compensation of all employees of the employers who meet the eligibility requirements contained in this article, excluding the compensation of those employees who are members of the defined contribution program administered by ASRS, as determined by the ASRS actuary pursuant to this section for June 30 of the fiscal year immediately preceding the preceding fiscal year, except that beginning with fiscal year 2001-2002 the contribution rate shall not be less than two percent of compensation of all employees of the employers. Beginning July 1, 2011 through June 29, 2016, the total employer contribution shall be determined on the projected unit credit method. Beginning June 30, 2016, the board shall determine the actuarial cost method pursuant to section 38-714. The total employer contributions shall be equal to the employer normal cost plus the amount required to amortize the past service funding requirement over a period that is determined by the board and consistent with generally accepted actuarial standards.

B. All contributions made by the employer and allocated to the fund established by section 38-712 are irrevocable and shall be used as benefits under this article or to pay expenses of ASRS.

C. The required employer contributions shall be determined on an annual a biennial basis by an actuary who is selected by the board and who is a fellow of the society of actuaries. ASRS shall provide by December 1 of each fiscal even-numbered year to the governor, the speaker of the house of representatives and the president of the senate the contribution rate for the ensuing two fiscal year years and the unfunded actuarial accrued liability, the funded status based on the actuarial value of assets and market value of assets and the annualized rate of return and the ten-year rate of return as of June 30 of the prior fiscal year.

D. Notwithstanding any other provision of this article, an employer may prepay the employer's 401(a) pension contributions directly to ASRS according to a written agreement between the employer and ASRS as follows:

1. 401(a) pension contributions that the employer prepays according to this subsection may be deposited, as determined by the employer and managed by ASRS, directly in either the ASRS trust fund established by section 38-712 or a section 115 trust.

2. ASRS shall determine the following options available to the employer:

(a) The amortization time periods.

(b) The frequency and dates that prepayments can be made.

(d) Any other options or obligations that the employer may have when entering into this written agreement.

3. The earnings accrual rate shall be the ASRS total 401(a) pension fund rate of return, or the actual rate of return of a short-term investment through ASRS, as requested by the employer and agreed to by ASRS.

4. The 401(a) pension contributions the employer prepays and the accrued earnings shall be managed at the discretion of ASRS subject to section 38-718.

5. 401(a) pension contributions that the employer prepays and accrued earnings may be used solely to reduce the employer's future 401(a) pension contributions as required from the employer pursuant to this section and section 38-735.

6. The employer shall determine when to use the 401(a) pension contributions the employer prepays and the accrued earnings from those 401(a) pension contributions.

7. ASRS shall provide the employer an annual statement of 401(a) pension contributions the employer prepaid and the accrued earnings.

8. Notwithstanding any other provision of this subsection, an employer may not prepay 401(a) pension contributions according to this subsection either:

(a) In an amount greater than the employer's net pension liability as reflected by ASRS in its most recent applicable governmental accounting standards report.

(b) After the total of the unamortized prepaid 401(a) pension contributions and the accrued earnings is equal to or greater than the employer's net pension liability as reflected by ASRS in its most recent applicable governmental accounting standards report.

9. After an employer elects amortization terms, ASRS shall provide the employer an amortization schedule annually that is current and based on the employer's election.

10. If ASRS determines to no longer offer the option of prepaying the employer's 401(a) pension contributions directly to ASRS, any 401(a) pension contributions the employer prepays and the accrued earnings remaining on account shall be used for future obligations according to the written agreement between the employer and ASRS.

11. Assets transferred in or out of or held in the ASRS trust fund established by section 38-712, or a section 115 trust, and the accrued earnings are exempt from state, county and municipal taxes.

12. The legislature intends that the accrued earnings not be subject to federal income tax. ASRS may adopt additional rules, policies and procedures as ASRS deems necessary or appropriate to fulfill the legislature's intent that the accrued earnings not be subject to federal income tax.

13. If ASRS receives notification from the United States internal revenue service that this subsection or any portion of this subsection will jeopardize the tax-exempt status of the 401(a) pension contributions the employer prepays according to this subsection and the accrued earnings, the portion of this subsection that will cause the disqualification does not apply.

E. In addition to the requirements of subsection D of this section, any prepayment agreement made between ASRS and this state or any state agency is subject to the following requirements:

1. Any prepayment amounts deposited with ASRS must be from an appropriation specifically for that purpose that is passed by the legislature and signed by the governor.

2. Any prepayment amounts or accrued earnings used to reduce the employer's 401(a) pension contributions must be authorized for a specific fiscal year by legislation that is passed by the legislature and signed by the governor.

F. For the purposes of this section:

1. "401(a) pension contributions" means the portion of an employer's pension contribution that is specific to the retirement program established under this article and qualified under section 401(a) of the internal revenue code.

2. "Section 115 trust" means a trust whose income is exempt from gross income pursuant to section 115 of the internal revenue code for essential government functions integral to this state and its political subdivisions. END_STATUTE

Sec. 10. Section 41-723, Arizona Revised Statutes, is amended to read:

START_STATUTE41-723. Governor's office of strategic planning and budgeting; duties

The director of the governor's office of strategic planning and budgeting shall:

1. Confer with officials of federal agencies concerning grants-in-aid generally, and particularly in regard to federal-aid programs in progress in this state.

2. On or before September 1 of each even-numbered year or with the submission of budget estimates as provided in section 35-113, report to the staff of the joint legislative budget committee findings and recommendations in the following areas:

(a) Except for a university under the jurisdiction of the Arizona board of regents, the use of federal monies by any state agency that receives federal monies, that anticipates receipt of federal monies or that administers a program supported by federal monies. A university shall submit an audited schedule of federal award spending for the preceding fiscal year to the staff of the joint legislative budget committee. The reports that all state agencies, except universities, are required to submit must:

(i) Delineate the federal monies received for the preceding fiscal year.

(ii) Delineate the federal monies to be used by the state agency for the current and upcoming fiscal year, including any programs supported by federal monies in which the loss of federal monies may impact the continuity or delivery of services.

(iii) Identify the date, if known, on which federal monies are set to expire.

(iv) Identify any obligations, agreements, joint exercise of powers agreements, maintenance of efforts agreements or memoranda of understanding that may be impacted by federal or state decisions regarding federal receipts, including any state matching requirements.

(v) Calculate the percentage of federal monies from the total monies available for the state agency for the fiscal year.

(b) If any state agency received notice of a reduction in federal monies from a specific federal grant of fifty percent or more from the previous fiscal year's funding, identify the plan to either reduce or eliminate the services provided through the grant or to continue services without any increase to any state resources.

(d) Legislation necessary for activation of federal programs in which this state does not participate.

(e) Legislation necessary for improved operation of federal grant-in-aid programs in progress in this state.

(f) The advisability of accepting new grant-in-aid programs or discontinuing programs already in progress.

3. Have access to the books, accounts, reports and vouchers and all other pertinent records of all state agencies for the purpose of carrying out the provisions of this section. END_STATUTE

Sec. 11. Section 41-792.01, Arizona Revised Statutes, is amended to read:

START_STATUTE41-792.01. Capital outlay stabilization fund; authorization for collection of rental; basis of payment; report; distribution of monies collected; transfer of payment; lease-purchase building operating and maintenance fund; definition

A. The capital outlay stabilization fund is established which shall consist consisting of monies paid into it in accordance with subsections D and F of this section and legislative appropriations to the account. All monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

B. The director shall make a recommendation for the allocation of a varying sum to the capital outlay stabilization fund each odd-numbered year. No part of the fund may be expended without specific appropriation from the legislature.

C. Each state department and each state agency when using space under the jurisdiction of the department as prescribed in section 41-791 or when using space in a building leased to the state shall pay rental and tenant improvement labor costs as prescribed in subsection D, E or F of this section.

D. The rental rates authorized for agencies occupying state-owned buildings shall be determined by the joint committee on capital review after recommendation by the director before July 1 of each even-numbered year. The rental is payable whether the state department or state agency is funded in whole or in part by state monies. The department of administration shall transfer the entire amount of the rental fee assessed on a state agency from the agency account into the capital outlay stabilization fund promptly at the start of each fiscal year. During the remainder of the fiscal year, the department of administration shall calculate pro rata adjustments to the rental fee on a monthly basis to reflect any changes in the occupancy of state-owned buildings. The department of administration shall transfer the amount of the rental fee adjustment assessed on a state agency from the agency account into the capital outlay stabilization fund. The rental fee authorized for state agencies occupying state-owned buildings is the greater of the amount included in each agency's annual operating budget as reported by the staff of the joint legislative budget committee or the pro rata adjusted amount based on actual occupancy. The director of the department of administration may authorize an exemption for periods of one year or more at a time for a state agency from the full payment account transfer requirements of this subsection if the agency can demonstrate a practice of making full payment of rent on a different basis necessitated by its cash flow. If a state agency does not have the financial resources for state-owned space, or does not occupy or vacates state-owned space after the beginning of the fiscal year, the director of the department of administration may authorize a whole or partial exemption from payment of the rental fee. On or before June 30 of each year, the department of administration shall submit a report to the staff of the joint legislative budget committee that details all rental fee exemptions authorized in the prior year.

E. The rental authorized for state agencies occupying state-leased buildings shall be the greater of the amount included in each agency's annual operating budget as reported by the staff of the joint legislative budget committee or the pro rata adjusted amount based on actual occupancy. The rental amount shall include the amount necessary to pay the lease or lease-purchase obligation and may include the amount necessary to pay operating costs associated with the lease-purchase buildings. The rental is payable whether the state department or state agency is funded in whole or in part by state monies. At the start of each fiscal year, the department of administration shall transfer the entire amount of the rental fee assessed on a state agency from the agency account into the department of administration's funds established for the purposes of this subsection. The department shall transfer from the applicable state agency budgets to the lease-purchase building operating and maintenance fund established in subsection I of this section amounts necessary to pay all operating costs associated with a lease-purchase building in the amounts reported by the staff of the joint legislative budget committee. During the remainder of the fiscal year, the department of administration shall calculate pro rata adjustments to the rental fee on a monthly basis to reflect any changes in the occupancy of state-leased buildings. The director of the department of administration may authorize an exemption for a state agency from the full payment account transfer requirements of this subsection for one-year periods or longer periods if the agency can demonstrate a practice of making full payment of rent on a different basis necessitated by its cash flow. If a state agency does not have the financial resources for state-leased space, or does not occupy or vacates state-leased space after the beginning of the fiscal year, the director of the department of administration may authorize a whole or partial exemption from payment of the rental fee. Before authorizing a rental fee exemption, the department of administration shall report the proposed rental fee exemption to the staff of the joint legislative budget committee.

F. The department of administration shall charge state agencies for the full costs of labor services it provides to accomplish tenant improvement projects within a building owned by or leased to the state. Charges for this labor shall be deposited in the capital outlay stabilization fund.

G. State universities, community colleges and the department of transportation are exempt from the provisions of this section, except when these state agencies are using space under the jurisdiction of the department of administration.

H. The department of administration shall not begin to charge rental or tenant improvement labor costs as prescribed in subsection D, E or F of this section until July 1, 2012 for any buildings operated by the secretary of state primarily for the purpose of storing, managing or preserving a large amount of public records or archival material.

I. The lease-purchase building operating and maintenance fund is established consisting of monies transferred into it in accordance with subsection E of this section. All monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations. Monies in the fund are subject to legislative appropriation.

J. For the purposes of this section, buildings leased by this state through the sale and lease-back deficit financing mechanism are considered state-owned buildings. State-leased buildings that are subject to subsection E of this section and that meet the requirements of section 41-791, subsection B are subject to subsection D of this section in the fiscal year following the retirement of the lease or lease-purchase debt service financing. On or before September 1 of each even-numbered year, the department of administration shall report to the joint legislative budget committee and the governor's office of strategic planning and budgeting on the cost associated with charging rental rates to state agencies with retired leases or lease purchases for the next two ensuing fiscal year years.

K. For the purposes of this section, "state department" or "state agency" means any department or agency of the executive or judicial branch of state government. END_STATUTE

Sec. 12. Section 41-793, Arizona Revised Statutes, is amended to read:

START_STATUTE41-793. Building systems; capital improvement plans

A. The department of administration, the Arizona board of regents and the department of transportation shall each be considered as a separate building system. Subject to approval by the joint committee on capital review, the director of the department of administration shall establish additional building systems for the purpose of computing and funding building renewal. Subject to approval by the joint committee on capital review, each building system shall designate an agency that is responsible for computing building renewal needs for each two ensuing fiscal year years pursuant to the formula approved by the committee and for allocating appropriated building renewal monies within the building system.

B. The agency responsible for each building system established pursuant to subsection A of this section shall prepare in each even-numbered year a capital improvement plan that contains proposals for state spending on land acquisition, capital projects, energy systems, energy management systems and building renewal for the building system. Copies of the plan shall be submitted to the governor no not later than October 15 of each even-numbered year. Each plan shall include:

1. A detailed list of all land acquisition and capital projects that are recommended to be undertaken or continued for the building system during the next two fiscal year years, an explanation as to the need for each acquisition or project, the effect of the recommended acquisition or capital project on the future operating expenses of this state, recommendations as to the priority of recommended acquisitions or capital projects and the means of financing those acquisitions or projects.

2. Forecasts as to the requirements for land acquisition and capital projects for the building system during the two fiscal years following the two fiscal year years provided for in paragraph 1 of this subsection and for any additional periods as may be necessary or desirable for an adequate presentation of the capital projects and a schedule for the planning and implementation or construction of those capital projects.

3. A report on the status of all ongoing or recently completed land acquisitions and capital projects for the building system, with a summary of monies expended for each acquisition or project.

4. A report on the condition, maintenance and utilization of all buildings within the building system that were inspected during the prior two fiscal year years.

5. A report on the building renewal activities undertaken during the past two fiscal year years, including the specific purposes for which monies were expended, proposed activities for the current fiscal year and a prioritized schedule of renewal projects proposed for the following fiscal year.

6. The amount of appropriation required in the following two fiscal year years for building renewal as determined by the building renewal formula set forth in section 41-793.01.

C. On or before June 1 of each year or thirty days after the state legislature adjourns its regular session sine die, whichever is later, each state agency under the department of administration building system and not later than August 1 of each year each agency under the Arizona board of regents building system shall provide to the agency responsible for its building system:

1. A detailed list of land acquisition and capital projects the agency seeks to undertake or continue in the next two fiscal year years, an explanation as to the need for each acquisition or project, the effect of the acquisitions or capital projects on future operating expenses of this state, including energy systems and energy management systems, and other relevant supporting data requested by the agency responsible for the building system.

2. Forecasts as to the requirements for land acquisition or capital projects of the agency for the two fiscal years following the two fiscal year years provided for in paragraph 1 of this subsection and for any additional periods as may be necessary or desirable for the adequate presentation of the capital projects and a schedule for the planning and implementation or construction of those capital projects.

3. A report on all ongoing or recently completed land acquisitions and capital projects of the agency, with a summary of monies expended for each acquisition or project, and energy consumption and expenditure information.

4. Any other information requested by the agency responsible for the building system.

5. A separate list that contains the status of all of its projects reviewed by, approved by or reported to the joint committee on capital review that have not yet been completed. The projects listed shall include third-party and commercial projects reported or reviewed pursuant to section 15-1682.02.

D. Each state agency in complying with subsection C, paragraph 1 of this section and the agency responsible for each building system in complying with subsection B, paragraph 1 of this section should give priority to fire and life safety projects.

E. The agency responsible for a building system shall inspect the condition, maintenance and utilization of each building within the building system not less than once every four fiscal years and shall report its findings pursuant to subsection B of this section. For purposes of complying with this requirement, the agency responsible for each building system shall inspect approximately fifty percent of its buildings within the first two years of the four-year cycle. The agency shall inspect the other fifty percent of the buildings in the remaining two years of the four-year cycle.

F. The governor shall prescribe standard forms in accordance with this section to be used by state agencies in preparing and submitting capital improvement plans. The forms prescribed shall be constructed so as to allow each building system to adequately provide information pertinent to its manner of operation.

G. Each plan, forecast and report required for two or more fiscal years in this section shall be delineated separately for each year. END_STATUTE

Sec. 13. Section 41-1273, Arizona Revised Statutes, is amended to read:

START_STATUTE41-1273. Budget analyst; employees; duties; reports

A. The joint legislative budget committee shall appoint a budget analyst and other clerical and technical employees that may be required.

B. The budget analyst shall serve full time as staff director and receive compensation as determined pursuant to section 38-611. The budget analyst, as a prerequisite for appointment, shall have demonstrated the budget analyst's competency and ability in the field of finance either in private business or public work.

C. The budget analyst may be removed from office prior to expiration of the budget analyst's term if, voting separately, a majority of the members of each body constituting the joint legislative budget committee votes in favor of removal.

D. The budget analyst shall prepare for distribution an analysis of the governor's budget as soon after the budget is presented to the legislature as is possible. The analysis, among other things, shall include recommendations of the budget analyst for revisions in expenditures.

E. In consultation with the governor's office of strategic planning and budgeting, the budget analyst shall determine and report to the governor and the legislature an estimate of appropriations subject to the limit imposed by article IX, section 17, Constitution of Arizona. The report shall be published on or before February 15 of each even-numbered year for the preceding two fiscal year years, for the current fiscal year and for the ensuing fiscal year to reflect the budget recommendations of the joint legislative budget committee.

F. On or before December 1 of each even-numbered year, the budget analyst shall report to the committee a listing of statutorily deleted and newly created funds and funds that changed appropriated status from the prior two fiscal year years.

G. On or before January 31 of each odd-numbered year, the budget analyst shall report to the committee the expenditures for each retirement system for the preceding two fiscal year years, including the expenditures made by this state for the employer contribution for each retirement system.

H. The legislature in making its appropriation for the operation of the legislature shall allocate a portion thereof for the operation of the joint legislative budget committee.

I. On or before December 1, 2019 and once every seven years thereafter, the budget analyst shall report to the committee the following:

1. The current amount of each surcharge and assessment that is authorized by law to be collected on every fine, penalty and forfeiture imposed and collected by the courts for criminal offenses and every civil penalty imposed and collected for a civil traffic violation and fine, penalty or forfeiture for a violation of the motor vehicle statutes, for any local ordinance relating to the stopping, standing or operation of a vehicle or for a violation of the game and fish statutes in title 17.

2. The items for which the collected surcharge or assessment monies are used. END_STATUTE

Sec. 14. Retroactivity

This act applies retroactively to from and after August 31, 2026.