HB2636 - 451R - House Bill Summary

House of Representatives

HB 2636

omnibus budget reconciliation; public finances

Sponsors: Representatives Weiers, Knaperek, Cheuvront, et al

DPA	Committee on Appropriations
X	Caucus and COW
	As Passed the House

HB 2636 is the omnibus budget reconciliation bill (ORB) containing public finance-related statutory and session law changes necessary to enact a balanced biennial state budget for the fiscal years (FY) 2002 and 2003, as contained in the General Appropriations Act, the Supplemental Appropriations Act, and the Capital Outlay Appropriations Act.

SPECIFIC PROVISIONS (BY AFFECTED AGENCY)

Corporation Commission

· Amends statute to allow expenditures from the Public Access Fund, Utility Regulatory Revolving Fund, and Securities Regulatory and Enforcement Fund for administrative and legal expenses. The proposal would save the General Fund $622,200 in FY 2002 and $692,200 in FY 2003. (Sections 1, 2, 5, 6, 7, 11.)

Department of Transportation

· Amends statute to increase the Department’s bonding authority from $800.0 million to $1.0 billion and board funding obligation (BFO) limit from $100.0 million to $200.0 million. (Sections 3, 4)

· Amends statute to allow after July 1, 2001 for up to $60 million of the proceeds from the sale of new BFOs to be deposited into the State Highway Fund and $40.0 million to be deposited in a separate subaccount for highway expansion and extension loan program. Allows after July 1, 2003 for up to $60.0 million from BFOs to be deposited in the State Highway Fund and up to $140.0 million may be deposited into the Highway Expansion and Extension Loan Program (HELP). (Section 4)

Arizona Historical Society

· Amends statute to eliminate the requirement that the Executive Director get Board approval before spending appropriated monies and allow the agency to retain interest earned on the Journal of Arizona History Fund and the Permanent Arizona Historical Society Revolving Fund. (Section 8, 9, 10).

Department of Environmental Quality

· Amends statute to repeal the requirement to complete a Strategic Program Area Review of the Water Quality Assurance Revolving Fund (WQARF). (Section 12).

Arizona State Lottery Commission

· Enacts session law to require the Arizona Lottery to return 31.6% of Powerball sales in both FY 2002 and FY 2003 to the General Fund. This is same amount required by session law enacted for FY 2001. The statutory requirement is the Lottery to return only 29.0%. The recommended change will ensure that the General Fund receives $19,878,700 from the Lottery Fund in FY 2002 and $18,626,700 from the Lottery Fund in FY 2003. (Section 13).

Department of Administration

· Enacts session law to increase the pro-rata share that state agencies contribute to the Arizona Department of Administration (ADOA) Personnel Division Fund from 0.9% of total Personal Services dollars to 0.95% in FY 2002 and 1.04% of total personal services dollars in FY 2003 to fund the replacement of the ADOA Human Resources/Payroll technology system. In FY 2002, this will have a General Fund cost of $663,200 and an Other Fund impact of $102,600 and in FY 2003 it will have a General fund cost of $1,201,700 and an Other Fund cost of $183,700. (Section 14).

Arizona Commission on the Arts

· Enacts session law to allow the Commission to expend up to $91,000 in both FY 2002 and FY 2003 from monies earned on the investment of the Arts Endowment Fund for the technology development plan. (Section 15).

Department of Water Resources

· Enacts session law to suspend the statutory requirement for a $5.0 million General Fund appropriation to the Water Protection Fund, and to specify that the amount appropriated to the Fund in FY 2002 and FY 2003 will be determined by the General Appropriations Act. (Section 16)

· Enacts session law to direct monies received via an interstate water banking agreement with Nevada to the General Fund. It is estimated that the General Fund will receive $2,000,000 in FY 2002 and $2,700,000 in FY 2003. (Section 20).

Attorney General

· Enacts session law to transfer $1.6 million from the Collection Enforcement Revolving Fund in FY 2002 to the Federal Funds account for the Model Court program. (Section 17).

Department of Public Safety

· Enacts session law to continue to redirect 9.0% of CJEF revenues formerly deposited to the General Fund to DPS to fund the Department’s crime lab system in both FY 2002 and FY 2003. This provisions avoids $2.9 million General Fund cost in FY 2002 and $3.0 million General Fund cost in FY 2003 for crime lab operations. (Section 18).

· Enacts session law to suspend for two years the schedule established by A.R.S. § 28-6537 and A.R.S. § 28-6993 reducing the level of Highway User Revenue Fund (HURF) and Highway Fund revenues available to fund DPS Highway patrol. This avoids at least $5.0 million in General Fund cost in FY 2002 and FY 2003 and increases the amount of HURF and Highway monies transferred to DPS to fund increased highway patrol officers. (Section 19).

HB 2636 was amended in the Committee on Appropriations as follows:

s Beginning in FY 03 and 04 $25M is appropriated from the State General Fund to the State Highway Fund to replace vehicle license tax reductions enacted in 1999-2000.

s Requires the State Transportation Board to retain the current transportation facilities construction programs and regional freeway program scheduled for completion in 2007.

s States that the program and projects shall not be delayed or postponed until the facilities are substantially complete.

s ---------- DOCUMENT FOOTER ---------

s 45th Legislature

s First Regular Session 3 April 12, 2001