Assigned to COM                                                                                                         FOR COMMITTEE

 

 


 

ARIZONA STATE SENATE

Phoenix, Arizona

 

FACT SHEET FOR H.B. 2249

 

corporation commission; funding

 

Purpose

 

Modifies the distribution of resources appropriated to the Arizona Corporation Commission (ACC) to allow expenditures for general administrative and legal expenses of the ACC.

 

Background

 

The ACC staff is organized into six divisions: Administrative Division, Hearings Division, Utilities Division, Securities Division, Corporations Division and Legal Division.  According to the ACC, the current appropriation does not properly reflect the total amount of resources necessary to support three of these divisions, the Administrative, Hearing and Legal Divisions, which are currently funded from the state general fund and provide services to the other three divisions.  In addition, the ACC is requesting changes in select divisions funding source distribution to reflect whom they support more accurately.

 

The affected funds, which consist of non-general fund monies and are subject to legislative appropriation, include:

 

·        Public Access Fund – Monies come from the fees for expedited service for the filings of articles of incorporation and other documents.  Monies currently are used for an improved data processing system that allows direct, on-line access by any person at a remote location to all public records concerning corporations and associations.

·        Utility Regulation Revolving Fund – Monies come from assessments against public utilities regulated by the ACC.  Monies currently are used for all expenses of the Utilities Division for attorneys employed to represent the ACC.

·        Securities Division and Enforcement Fund – Monies come from registration fees for securities dealers and salespersons, and from registration fees for securities exchanges established in this state.  Monies currently are used for education, regulatory, investigative and enforcement operations in the Securities Division.

 

The House and Senate Appropriations Subcommittees on Criminal Justice and Transportation recommended adoption of the provisions of H.B. 2249 in the Omnibus Reconciliatory Budget Act.

 

According to the Joint Legislative Budget Committee, the fiscal impact associated with this measure would be an addition of $621,700 other fund monies in FY 2001-2002 and FY 2002-2003 to the Utility Regulatory Revolving Fund; $36,000 other fund monies in FY 2001-2002 and FY 2002-2003 to the Securities Regulatory and Enforcement Fund; and $34,500 other fund monies in FY 2001-2002 and FY 2002-2003 to the Public Access Fund.  Correspondingly, there would be a reduction of $622,200 general fund monies in FY 2001-2002 and $692,200 general fund monies in FY 2002-2003 that would be appropriated to the ACC.

 

 

Provisions

 

1.      Allows monies in the public access fund to be allocated for a part of the general administrative and legal expenses of the ACC.

 

2.      Allows monies in the utility regulation revolving fund to be allocated for a part of the administrative and hearing divisions’ expenses of the ACC.

 

3.      Expands the number of employees who can receive compensation from the utility regulation revolving fund to include other legal staff.

 

4.      Expands the annual assessment by the ACC against public service corporations to include a part of the administrative, hearing and legal divisions’ expenses. 

 

5.      Allows monies in the securities regulatory and enforcement fund to be allocated for a part of the general administrative and hearing expenses of the ACC.

 

6.      Makes technical and conforming changes.

 

7.      Provides for a general effective date.

 

 

House Action

 

EUT                 1/24/01            10-0-0-0         

APPROP         2/13/01            15-0-0-1

3rd Read           2/27/01            60-0-0-0

 

 

Prepared by Senate Staff

March 12, 2001