ARIZONA STATE SENATE
Phoenix, Arizona
REVISED
county treasurers;
procedures
Purpose
Makes
various changes to the county treasurer procedures and operations regarding
earned interest income, extends the maximum maturity of county treasurer
investments in securities and deposits from three to five years and expands the
list of eligible investments for a county treasurer to make. Allows school districts that have assumed
accounting responsibility to be designated in preference of payment of
warrants.
Background
Laws 1999, Chapter 96 made
various changes to the operations of county treasurers. Some of the changes required county
treasurers to credit interest income to the agencies’ general funds if the monies were collected and held by the
county treasurer for fewer than 60 days.
This measure separates the agencies that have monies held by treasurers
into two groups: involuntary pool participants (interest is deposited in
general fund of the collecting entity, i.e. the county general fund if monies
are held by the county treasurer) and agency pool participants (interest is
allocated on a pro rata basis to each entity).
Changes in computer
technology have rendered as antiquated many of the statutory requirements
regarding the method of payments, the issuing of receipts and the identifying
of property. This measure repeals many
of the requirements dealing with receipts and recording methods and allows
county treasurers to formulate their own policies and procedures.
School districts with a
student count of at least 4,000 students can apply for, and assume,
responsibility for their own accounting.
This legislation specifically acknowledges these entities in designating
a preference of payments of warrants drawn on the school fund of a school
district.
Finally, this measure
repeals requirements holding the county treasurers, recorders and assessors
personally liable for the wrongful act of an officer. According to the Arizona Association of Counties, all counties
are now self-insured, including errors and omissions liability insurance. Therefore, the personal liability provisions
are unnecessary.
The fiscal impact of this
legislation is unknown.
Provisions
1. Requires all interest earned on monies collected as taxes for a city or town during the previous month to be paid into the county general fund for use as determined by the board of supervisors.
2. Requires a treasurer to distribute pooled income earnings on a pro rata basis to “agency pool participants.”
3. Requires income earnings for the funds of “involuntary pool participants” to be deposited in the general fund of the “collecting entity.”
4. Removes requirement that a treasurer:
a.
credit
interest realized on subdivision monies that are not maintained by a treasurer
for more than 60 days to the depositing agency’s general fund,
b.
distribute
interest that is realized on monies that are maintained solely by the treasurer
on a pro rata basis to subdivision accounts,
c.
credit
all other interest not apportioned by law to the state general fund or the
depositing subdivision, and
d.
collect
and credit interest and appreciation in accordance with general public fund
accounting principles.
5. Defines “collecting entity” as the entity from which the treasurer receives general funding, including the county for collections performed by county treasurers, the city for collections performed by city treasurers and the district for collections performed by district treasurers.
6. Defines “agency pool participant” as a subdivision that has monies maintained by a treasurer and that has authority to draw negotiable instruments on a treasurer or to make other disbursements.
7. Defines “involuntary pool participant” as a subdivision that only receives the principal ratio of the monies collected, for which the principal monies are mandated to be distributed on a specific date and for which the interest earned on the monies between the time of collection and other statutory requirements reverts to the general fund of the collecting entity.
8. Allows the treasurers to establish policy and procedures for when and how to issue receipts. Repeals antiquated guidelines regarding the method and content of property tax receipts issued by county treasurers.
9. Removes the statutory requirement holding treasurers, recorders or assessors personally liable for interest on erroneous or wrongful sales of real property liens.
10. Reduces, from 12 percent to 10 percent, the interest rate paid to purchasers of erroneously or wrongfully sold real property tax liens.
11. Extends the maximum maturity of securities and investments in which a treasurer has invested public monies from three to five years.
12. Establishes the following as investments eligible for public monies held by a treasurer:
a.
commercial
paper of prime quality that is rated “P1” by Moody’s Investors Service or rated
“A1” or better by Standard and Poor’s rating service or their successors, and
b.
bonds,
debentures and notes that are issued by corporations organized and doing
business in the United States and that are rated “A” or better by Moody’s
Investor Service or Standard and Poor’s Rating Service or their successors.
13. Entitles warrants drawn on the county treasurer against the school fund of a school district by a finance officer of a school district that has assumed accounting responsibility to preference of payment out of the school fund according to priority of registration.
14. Voids warrants drawn on the school fund of a school district by a finance officer of a school district that has assumed accounting responsibility that are not presented for payment one year after the date of issuance.
15. Makes technical changes.
16. Provides for a general effective date.
Amendments Adopted by Committee
Clarifies references to school districts that have assumed accounting responsibility.
Senate Action
GOV 1/22/01 DPA 5-0-1-0
Prepared by Senate Staff
January 23, 2001