HB2645 - 452R - House Bill Summary

House of Representatives

HB 2645

bridge construction; technical correction

Sponsors: Representative Cooley

X	Committee on Transportation
	Caucus and COW
	Third Read	This bill as introduced contains *an Emergency clause.*
	As Passed the House

HB 2646 makes a technical change to the pledging of revenues to secure debt instruments.

A strike everything amendment will be offered in the Transportation Committee with the following provisions:

The strike everything amendment repeals the requirement that counties with a population of more than 400,000 persons or an incorporated city or town with a population of more that 30,000 persons located in a county of more than 400,000 persons budget and spend local revenues for street and highway purposes in an amount at least equal to the average amount of local revenues budgeted and spent for these purposes in any four of the five fiscal years during the period beginning with fiscal year 1981-1982 and ending with fiscal year 1985-1986. Sets an effective date of June 30, 2005.

History

As part of a 1981 transportation funding bill, the Arizona Legislature enacted the requirements that, beginning in 1985, local entities budget and spend local revenues for street and highway purposes in an amount equal to local revenues spent for these purposes in the preceding five years. Based on available information, it appears that the legislature increased funding for transportation improvements to local entities in the early 1980s, and the “maintenance of effort” provisions were enacted to ensure that local entities continued to maintain local expenditures for transportation so that the increased state funding was spent on the intended purpose: roads and streets. Current statute contains provisions that if local entities do not comply, the Arizona Department of Transportation withholds distribution of Highway User Revenue Funds.

Provisions

· Repeals ARS § 28-6543 and ARS § 28-6544 relating to “maintenance of effort” reporting requirements and sanctions for failure to comply with these requirements.

· Suspends current law pertaining to “maintenance of effort” for three years and sets an effective date of June 30, 2005.

· Adds an emergency clause.

· Makes technical and conforming changes.

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45th Legislature