Reference Title: county treasurers; procedures

AN ACT
AMENDING SECTIONS 11-496, 15-185, 15-1464, 15-1467 AND 35-327, ARIZONA REVISED STATUTES; AMENDING TITLE 11, CHAPTER 3, ARTICLE 4, ARIZONA REVISED STATUTES, BY ADDING SECTION 11-499; RELATING TO COUNTY TREASURERS.

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

Section 1. Section 11-496, Arizona Revised Statutes, is amended to read:

11-496 . Public records copy; proceeds of sale; agent duties; surcharge; deposit

A. In addition to the fee prescribed by section 39-121.01, subsection D, paragraph 1 or section 39-121.03, subsection A, the county treasurer may impose a surcharge of not more than twenty-five per cent of the fee charged for furnishing a copy, printout or photograph. The county treasurer shall deposit monies collected pursuant to this section in the taxpayers' information fund established by section 11-495.

B. A COUNTY TREASURER WHO IS DESIGNATED AS A REGISTRAR PURSUANT TO SECTION 35-491 MAY IMPOSE A SURCHARGE OF NOT MORE THAN TWENTY-FIVE PER CENT OF THE AVERAGE FEE CHARGED BY COMMERCIAL BANK TRUST DEPARTMENTS DURING THE PREVIOUS CALENDAR YEAR FOR DISCHARGING REGISTRAR, TRANSFER AND PAYING AGENT DUTIES.

C. THE COUNTY TREASURER SHALL DEPOSIT MONIES COLLECTED PURSUANT TO THIS SECTION IN THE TAXPAYERS' INFORMATION FUND ESTABLISHED BY SECTION 11-495.

Sec. 2. Title 11, chapter 3, article 4, Arizona Revised Statutes, is amended by adding section 11-499, to read:

11-499 . Issuance of county bonds; liability

THE BOARD OF SUPERVISORS AND NOT THE COUNTY TREASURER IS THE OFFICIAL ISSUER OF COUNTY BONDS, AND THE BOARD OF SUPERVISORS SHALL ASSUME ALL LIABILITY ON THE BONDS INCLUDING BONDS ISSUED PURSUANT TO SECTIONS 11-254.03, 11-264.01, 11-271, 11-281, 11-307, 11-371 AND 11-721 AND ALL OTHER COUNTY BONDS.

Sec. 3. Section 15-185, Arizona Revised Statutes, is amended to read:

15-185 . Charter schools; financing; definition

A. Financial provisions for a charter school that is sponsored by a school district governing board are as follows:

1. Until June 30, 1999, the charter school shall be included in the district's budget and financial assistance calculations pursuant to section 15-185.01, subsection B and chapter 9 of this title. From and after June 30, 1999, the charter school shall be included in the district's budget and financial assistance calculations pursuant to paragraph 3 of this subsection and chapter 9 of this title, except for chapter 9, article 4 of this title. The charter of the charter school shall include a description of the methods of funding the charter school by the school district. The school district shall send a copy of the charter and charter school application, including a description of how the school district plans to fund the school, to the state board of education before the start of the first fiscal year of operation of the charter school. The charter or application shall include an estimate of the student count for the charter school for its first fiscal year of operation. This estimate shall be computed pursuant to the requirements of paragraph 3 of this subsection.

2. A school district is not financially responsible for any charter school that is sponsored by the state board of education or the state board for charter schools.

3. A school district that sponsors a charter school may:

(a) Increase its student count as provided in subsection B, paragraph 2 of this section during the first year of the charter school's operation to include those charter school pupils who were not previously enrolled in the school district. From and after June 30, 1999, a charter school sponsored by a school district governing board is eligible for the assistance prescribed in subsection B, paragraph 5 of this section if at least ninety per cent of the pupils enrolled in the charter school were not enrolled in the school district in the year before the first year of enrollment in the charter school. The soft capital allocation as provided in section 15-962 for the school district sponsoring the charter school shall be increased by the amount of the additional assistance. The school district shall include the full amount of the additional assistance in the funding provided to the charter school.

(b) Until June 30, 1999, increase its transportation support level as provided in subsection B, paragraph 3 of this section to include the increases caused by the transportation of eligible pupils enrolled in the charter school.

4. If a school district uses the provisions of paragraph 3 of this subsection, the school district is not eligible to include those pupils in its student count for the purposes of computing an increase in its revenue control limit and district support level as provided in section 15-948.

5. A school district that sponsors a charter school is not eligible to include the charter school pupils in its student count for the purpose of computing an increase in its capital outlay revenue limit as provided in section 15-961, subsection C, except that if the charter school was previously a school in the district, the district may include in its student count any charter school pupils who were enrolled in the school district in the prior year.

6. A school district that sponsors a charter school is not eligible to include the charter school pupils in its student count for the purpose of computing the revenue control limit which is used to determine the maximum budget increase as provided in chapter 4, article 4 of this title unless the charter school is located within the boundaries of the school district.

B. Financial provisions for a charter school that is sponsored by the state board of education or the state board for charter schools are as follows:

1. The charter school shall calculate a base support level as prescribed in section 15-943, and until June 30, 1999, a transportation support level as prescribed in section 15-945 and paragraph 3 of this subsection, a capital outlay revenue limit as prescribed in section 15-961 and a capital levy revenue limit as prescribed in section 15-962, except that sections 15-941 and 15-942 do not apply to these charter schools.

2. Notwithstanding paragraph 1 of this subsection, the student count shall be determined initially using an estimated student count based on actual registration of pupils before the beginning of the school year. After the first one hundred days or two hundred days in session, as applicable, the charter school shall revise the student count to be equal to the actual average daily membership, as defined in section 15-901, or the adjusted average daily membership, as prescribed in section 15-902, of the charter school. Before the one hundredth day or two hundredth day in session, as applicable, the state board of education or the state board for charter schools may require a charter school to report periodically regarding pupil enrollment and attendance and the department of education may revise its computation of equalization assistance based on the report. A charter school shall revise its student count, base support level, and until June 30, 1999, transportation support level and capital outlay revenue limit, and from and after June 30, 1999, additional assistance, before May 15. A charter school that overestimated its student count shall revise its budget before May 15. A charter school that underestimated its student count may revise its budget before May 15.

3. Until June 30, 1999, notwithstanding paragraph 1 of this subsection, the transportation support level shall be determined using an estimated transportation support level as prescribed in section 15-945 before the beginning of the school year. After the first one hundred days or two hundred days in session, as applicable, the charter school shall revise the transportation support level to be equal to the actual transportation support level of the charter school. Before the one hundredth day or two hundredth day in session, as applicable, the state board of education or the state board for charter schools may require a charter school to report periodically regarding the daily route mileage and the number of eligible students transported. A charter school that overestimated its transportation support level shall revise its budget before May 15. A charter school that underestimated its transportation support level may revise its budget before May 15.

4. A charter school may utilize section 15-855 for the purposes of this section. The charter school and the department of education shall prescribe procedures for determining average daily attendance and average daily membership.

5. Equalization assistance for the charter school shall be determined by adding the amount of the base support level, and until June 30, 1999, the transportation support level, the capital levy revenue limit and the capital outlay revenue limit as calculated pursuant to this section, and additional capital assistance calculated pursuant to section 15-185.01, subsection A. From and after June 30, 1999, the amount of the additional assistance is one thousand two hundred four dollars sixty-seven cents per student count in kindergarten programs and grades one through eight and one thousand four hundred four dollars one cent per student count in grades nine through twelve.

6. The state board of education shall apportion state aid from the appropriations made for such purposes to the state treasurer for disbursement to the counties for the charter school SCHOOLS in each county in an amount as determined by this paragraph. The apportionments shall be as follows:

(a) During the first year of operation:

(i) On July 1, one-third of the total amount to be apportioned during the fiscal year.

(ii) On October 15, one-twelfth of the total amount to be apportioned during the fiscal year.

(iii) On December 15, one-twelfth of the total amount to be apportioned during the fiscal year.

(iv) On January 15, one-twelfth of the total amount to be apportioned during the fiscal year.

(v) On February 15, one-twelfth of the total amount to be apportioned during the fiscal year.

(vi) On March 15, one-twelfth of the total amount to be apportioned during the fiscal year.

(vii) On April 15, one-twelfth of the total amount to be apportioned during the fiscal year.

(viii) On May 15, one-twelfth of the total amount to be apportioned during the fiscal year.

(ix) On June 15, one-twelfth of the total amount to be apportioned during the fiscal year.

(b) During the second and subsequent years of operation, one-twelfth of the total amount to be apportioned during the fiscal year on the fifteenth day of each month of the school year.

7. Notwithstanding the provisions of paragraph 6 of this subsection, if sufficient appropriated monies are available after the first forty days in session of the current year, a charter school may request additional state monies to fund the increased state aid due to anticipated student growth through the first one hundred days or two hundred days in session, as applicable, of the current year as provided in section 15-948. In no event shall a charter school have received more than three-fourths of its total apportionment before April 15 of the fiscal year. Early payments pursuant to this subsection must be approved by the state treasurer, the director of the department of administration and the superintendent of public instruction.

8. The charter school shall not charge tuition, levy taxes or issue bonds.

9. NOT LATER THAN NOON ON THE DAY PRECEDING EACH APPORTIONMENT DATE ESTABLISHED BY SECTION 15-185, SUBSECTION B, PARAGRAPH 6, the superintendent of public instruction shall furnish to the county STATE treasurer an abstract of the apportionment and shall certify the apportionment to the department of administration, which shall draw its warrant in favor of the county treasurer of each county CHARTER SCHOOLS for the amount apportioned.

C. If a pupil is enrolled in both a charter school and a public school that is not a charter school, the sum of the daily membership, which includes enrollment as prescribed in section 15-901, subsection A, paragraph 2, subdivisions (a) and (b) and daily attendance as prescribed in section 15-901, subsection A, paragraph 6, for that pupil in the school district and the charter school shall not exceed 1.0. If the pupil is enrolled in both a charter school and a public school that is not a charter school and the sum of the daily membership or daily attendance for that pupil is greater than 1.0, the sum shall be reduced to 1.0 and shall be apportioned between the public school and the charter school based on the percentage of total time that the pupil is enrolled or in attendance in the public school and the charter school. The uniform system of financial records shall include guidelines for the apportionment of the pupil enrollment and attendance as provided in this section.

D. Charter schools are allowed to accept grants and gifts to supplement their state funding , but it is not the intent of the charter school law to require taxpayers to pay twice to educate the same pupils. The base support level for a charter school or for a school district sponsoring a charter school shall be reduced by an amount equal to the total amount of monies received by a charter school from a federal or state agency if the federal or state monies are intended for the basic maintenance and operations of the school. The superintendent of public instruction shall estimate the amount of the reduction for the budget year and shall revise the reduction to reflect the actual amount before May 15 of the current year. If the reduction results in a negative amount, the negative amount shall be used in computing all budget limits and equalization assistance, except that:

1. Equalization assistance shall not be less than zero.

2. For a charter school sponsored by the state board of education or the state board for charter schools, the total of the base support level, and until June 30, 1999, the transportation support level, the capital outlay revenue limit and the capital levy revenue limit, and from and after June 30, 1999, the additional assistance, shall not be less than zero.

3. For a charter school sponsored by a school district, the base support level for the school district shall not be reduced by more than the amount that the charter school increased the district's base support level, and until June 30, 1999, the transportation support level, capital outlay revenue limit and capital levy revenue limit, and from and after June 30, 1999, the soft capital allocation.

E. From and after June 30, 1999, notwithstanding subsection B, paragraph 5 of this section, equalization assistance for charter schools shall be provided as a single amount based on average daily membership without categorical distinctions between maintenance and operations or capital.

F. At the request of a charter school, the county school superintendent of the county where the charter school is located may provide the same educational services to the charter school as prescribed in section 15-308, subsection A. The county school superintendent may charge a fee to recover costs for providing educational services to charter schools.

G. For the purposes of this section, "monies intended for the basic maintenance and operations of the school" means monies intended to provide support for the educational program of the school, except that it does not include supplemental assistance for a specific purpose or P.L. 81-874 monies. The auditor general shall determine which federal or state monies meet the definition in this subsection.

Sec. 4. Section 15-1464, Arizona Revised Statutes, is amended to read:

15-1464 . State aid per capita distribution for capital outlay; capital outlay fund; appropriation

A. In addition to the appropriation prescribed in section 15-1463, subsection A, this state shall pay to each community college district state aid for capital outlay in the following manner:

1. For fiscal year 1992-1993 for a community college district which had less than five thousand actual full-time equivalent students according to the most recent fiscal year actual full-time equivalent student count, the amount determined by multiplying the number of actual full-time equivalent students according to the most recent fiscal year actual full-time equivalent student count by two hundred seven dollars.

2. For fiscal year 1992-1993 for a community college district which had five thousand or more actual full-time equivalent students according to the most recent fiscal year actual full-time equivalent student count, the amount determined by multiplying the number of actual full-time equivalent students according to the most recent fiscal year actual full-time equivalent student count by one hundred fifty-eight dollars.

3. Beginning with fiscal year 1993-1994 the legislature shall adjust by the growth rate for common and high school districts as provided by law, subject to appropriation , the amount of state aid to community college districts as provided in paragraphs 1 and 2 of this subsection.

B. The basis for computing full-time equivalent students for the capital outlay per capita distribution shall be on the same basis as the computation prescribed in section 15-1466.01.

C. In addition to the formula to determine the appropriations prescribed in section 15-1463, subsection A and subsection A of this section, this state may pay additional amounts for capital outlay to a community college district based on requests from the district. Before requesting an appropriation as provided in this subsection, the state board shall follow the provisions of section 41-793, subsections C and D for the projects for which the monies are requested and shall submit the required information to the department of administration.

D. Appropriations for capital outlay made pursuant to subsections A and C of this section and section 15-1463 shall be made to an account designated as the capital outlay fund.

E. At the beginning of each fiscal year the state board shall present to the department of administration a claim for the annual amount appropriated by the legislature and assigned to each district for capital outlay purposes. The department of administration shall draw a warrant in payment of the claim and the county treasurer of the district shall place the proceeds to the credit of the district funds to be established and maintained by the county treasurer AND SHALL TRANSMIT THE WARRANT TO THE STATE TREASURER WHO SHALL DISBURSE THE FUNDS TO THE DISTRICTS for capital outlay purposes of the district , to be expended as provided by law. Where a district consists of more than one county, the department of administration shall draw a warrant in payment of the claim to the credit of the county treasurer of the county in which the community college is located, or If no community college exists, in the county in which the community college is to be located THE DEPARTMENT SHALL ESTABLISH A FUND FOR NEW FUTURE COMMUNITY COLLEGE DISTRICTS TO BE DISBURSED AS NEEDED .

F. NOTWITHSTANDING SUBSECTION E OF THIS SECTION, A COMMUNITY COLLEGE DISTRICT MAY REQUEST THE STATE TREASURER TO DISBURSE THE MONIES TO THE LOCAL GOVERNMENT INVESTMENT POOL FOR DEPOSIT INTO THE DISTRICT'S ACCOUNT AS ESTABLISHED IN SECTION 35-326.

F. G. Each district has the option of using up to twenty per cent of its total capital outlay aid appropriation for operating aid purposes or taking this same amount out of the district's total operating state aid appropriation and using it for capital outlay purposes.

Sec. 5. Section 15-1467, Arizona Revised Statutes, is amended to read:

15-1467 . State aid appropriations; disbursement procedure; district fund

A. Appropriations for state aid to community colleges shall be made to the state board for distribution to each community college district in accordance with section 15-1466.

B. On the fifteenth day of July 15 , October 15 , January 15 and April 15 , the state board shall present to the director of the department of administration, on behalf of each district for which an appropriation is made, a claim for one-fourth of the annual amount appropriated to the district. The director of the department of administration shall draw his A warrant in payment of the claim , and the county treasurer of the district shall place the proceeds to the credit of the district funds to be established and maintained by the county treasurer AND TRANSMIT THE WARRANT TO THE STATE TREASURER WHO SHALL DISBURSE THE FUNDS TO EACH DISTRICT for the support and maintenance of the district, to be expended as provided by law. Where a district consists of more than one county the director of the department of administration shall draw his warrant in payment of the claim to the credit of the county treasurer of the county where the community college is located, or If no community college exists, the county where the community college is to be located THE DEPARTMENT SHALL ESTABLISH A FUND FOR NEW FUTURE COMMUNITY COLLEGE DISTRICTS TO BE DISBURSED AS NEEDED .

C. NOTWITHSTANDING SUBSECTION B OF THIS SECTION, A COMMUNITY COLLEGE DISTRICT MAY REQUEST THE STATE TREASURER TO DISBURSE THE MONIES TO THE LOCAL GOVERNMENT INVESTMENT POOL FOR DEPOSIT INTO THE DISTRICT'S ACCOUNT AS ESTABLISHED IN SECTION 35-326.

Sec. 6. Section 35-327, Arizona Revised Statutes, is amended to read:

35-327 . Treasurer; duties; safekeeping of securities; warrants of financial officers; interest; exemptions; responsibilities

A. In the investment of trust funds, the responsible financial officer shall draw a warrant at the direction of the treasurer, payable from the proper fund for the payment of the security purchased.

B. A treasurer is responsible for the safekeeping of all securities acquired by the treasurer under this section. Any such securities may be deposited for safekeeping with any trust company that has its principal place of business in this state or that is qualified to do a trust business in this state.

C. A treasurer shall regularly account for, itemize and inventory according to general public fund accounting practices all securities coming lawfully into the treasurer's possession. Such practice shall be audited by the auditor general for the counties and by an independent auditor for cities and towns at the time of the regular audit as prescribed by law.

D. The treasurer may at the expense of the subdivision and with the approval of the governing board enter into an agreement with the trust department of any bank or banks authorized to do a trust business in this state, for the safekeeping and handling of securities of which the treasurer is lawful custodian. The agreement shall be entered into under terms and conditions which secure the proper safeguarding, inventory, withdrawal and handling of the securities. Access to, deposits or withdrawals of the securities from any place of deposit selected by the officers shall not be permitted or made except as the terms of the agreement provide. The agreement need not require that securities be physically located in this state, if the securities are represented by safekeeping receipts issued for the account of the treasurer by a federal reserve bank or any bank located in a reserve city whose combined capital and surplus on the date of the safekeeping receipt is ten million dollars or more.

E. When securities acquired under this section mature and become due and payable, the treasurer shall present them for payment according to their terms and collect the monies payable on them. The monies collected shall be treated as subdivision monies subject to reinvestment or operating needs or trust monies subject to the provisions of the trust.

F. Interest and appreciation realized on any investment authorized by this section shall be collected by the treasurer and credited by the treasurer in accordance with general public fund accounting practices. Interest realized on subdivision monies included POOLED within a public deposit which are collected for individual tax funds or other similar funds shall be apportioned pro rata among such funds except for accounts otherwise invested as provided by any law applicable to such a fund AND NOT MAINTAINED BY A TREASURER FOR MORE THAN SIXTY DAYS SHALL BE CREDITED TO THE DEPOSITING AGENCY'S GENERAL FUND. INTEREST REALIZED ON PUBLIC DEPOSIT MONIES THAT ARE MAINTAINED SOLELY BY THE TREASURER SHALL BE DISTRIBUTED ON A PRO RATA BASIS TO SUBDIVISION ACCOUNTS . All other interest realized on any public deposits not otherwise apportioned by law shall be credited to the general fund of this state or the subdivision making the deposit.

G. As provided in this article, the governing body of any subdivision or of any agency, department, board or commission of this state or of any subdivision may, by the adoption of a resolution of continuing effect, authorize the treasurer to invest funds collected for the governing body.

H. The investment of public monies as provided in this section is exempt from the provisions of section 35-142, subsection B and sections 35-154, 35-181.01, 35-181.02, 35-182 through 35-185, 35-185.01, 35-185.02, 35-186 through 35-190, 35-190.01, 35-191, 35-192, 35-192.01, 35-192.02, 35-193, 35-193.02 and 41-732.

I. A treasurer is responsible for the safekeeping, management and disbursement of any investment made and any interest received in compliance with this article.

Sec. 7. Retroactivity

This act applies retroactively to from and after June 30, 1999.

APPROVED BY THE GOVERNOR APRIL 28, 1999.

FILED IN THE OFFICE OF THE SECRETARY OF STATE APRIL 28, 1999.