House of Representatives

HB 2563

water quality fund transfers; repeal

Sponsors: Representatives Huffman, Allen, Miranda,

O'Halleran et al.

X	Committee on Environment
	Committee on Appropriations
	Caucus and COW
	Third Read
	As Passed the House

HB 2563 restores the corporate income tax transfer for the water quality assurance revolving fund (WQARF) for fiscal year 2002 –2003 at up to the full $15 million level. WQARF is the State's program designated to identify, assess and clean up groundwater sites contaminated with hazardous substances.

History

WQARF was created under the Environmental Quality Act of 1986 to support hazardous substance cleanup efforts in the state. The fund is dependent upon legislative appropriations, cost recovery from responsible parties, corporate income tax (approximately $15 million annually) and special fees.

Corporate income tax funding for WQARF was reduced to $5 million for FY 2001-2002, and eliminated for FY 2002-2003 during the 2nd Special Session of the 45th Legislature in December 2001 (chapter 2). WQARF continues to receive annual funding from special fees in the amount of approximately $3.6 million.

WQARF is funded in part from an annual $15 million transfer from the corporate income tax pursuant to ARS section 49-282. In addition, WQARF generates other revenue from various license and registration fees. The statute directs the Treasurer to adjust the corporate income tax transfer so that when combined with the other WQARF fee generated revenue, the program receives $18 million annually. In FY 00 WQARF fee revenue was about $3.6 million; DEQ estimates a similar amount for FY 02 and 03.

Provisions

· Restores the transfer of corporate income tax monies to WQARF in FY 2002-2003.

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45th Legislature

Second Regular Session 2 March 14, 2002

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