Assigned to FS                                                                                                                                              AS ENACTED

 

 


 

ARIZONA STATE SENATE

Phoenix, Arizona

 

FINAL REVISED

FACT SHEET FOR S.B. 1031

 

DES; collection system; sale

 

Purpose

 

            An emergency act that gives the Department of Economic Security (DES) authority to sell the design, development and installation of support collection technology systems and provide related technical assistance to other states.  Allows DES to retain half the sales proceeds and forward half to the state general fund.

 

Background

 

                Current law prohibits a state agency, with certain exceptions, from the sale of technology,  and restricts any activity that competes with private enterprise.

 

            The state of Hawaii has expressed interest in purchasing the DES Accounts Receivable Integrated Collections System (ARICS) developed by DES with monies from the public assistance collections fund.  Hawaii cannot fund development of a new system and DES wants to use sales proceeds to enhance technology.

 

            The bill provides authority for DES to provide the rights of ARICS to other states and recoup some of the costs associated with its development.  The Arizona Health Care Cost Containment System previously received authority to sell their technology to recoup development costs.  An emergency clause is included because DES plans to finalize the sale to Hawaii before the anticipated general effective date for the Forty-Fifth Legislative Session.

 

According to DES, the state of Hawaii will pay approximately $150,000 for the system.  It is unknown whether future additional sales will occur.

 

 

Provisions

           

1.      Allows DES to sell support collection technology and related technical assistance to other states.

 

2.      Requires DES to transmit monies received for technology sales to the State Treasurer.

 

3.      Requires the State Treasurer to deposit half of the technology monies and 25 percent of other collections monies into the public assistance collections fund, and half of the technology monies and 75 percent of other collections monies into the state general fund.

 

4.      Allows DES to administer the public assistance collections fund.

 

5.      Makes technical and conforming changes.

 

6.      Contains an emergency clause.

 

Amendments Adopted by Committee

 

1.      Changes the distribution of collections.  Requires that all monies be deposited into the public assistance collections fund rather than a portion going to the state general fund.

 

2.      Makes technical changes.

 

Amendments Adopted by Committee of the Whole

 

Substitutes for the Family Services amendment.  Limits the 100 percent retention of monies to amounts collected from the sale of collections technology, without changing the distribution of other collections.

 

Amendments Adopted by the House of Representatives

 

            Diverts half the sales proceeds to the state general fund.

 

Senate Action                                                               House Action

 

FS                    1/17/01     DPA     6-0-0-0                  HS                   3/13/01    DP       6-0-0-4

3rd Read           2/5/01                    28-1-1-0E             EUT                 3/28/01     DP      6-0-0-4

Final Read        5/1/01                    26-2-2-0E             APPROP         4/18/01     DPA   14-1-0-1

                                                                                    3rd Read           4/24/01                55-0-5-0-E

 

 

Signed by the Governor 5/4/01

Chapter 315 E

 

Prepared by Senate Staff

May 16, 2001