SB1060 - 452R - House Bill Summary

House of Representatives

SB 1060

~~finances; technical correction~~

now: budget reconciliation; 2002

Sponsor: Senator Solomon

DPAS/E	Committee on Appropriations
DPA	Caucus and COW
DP	Third Read
X	As Transmitted to the Governor

SB 1060 makes a technical correction to the statutes regulating public finances.

History

The FY 2001-2002 GF budget, as enacted during the Forty-fifth Legislature, Third Special Session relies on the Budget Stabilization Fund (BSF) as a contingency source, should revenues fall below provided estimates. Prior to the end of the Third Special Session, new areas of shortfall have been identified. This trailer bill addresses these additional concerns.

Provisions

Department of Administration (ADOA)

· Entitles an officer or employee of the State to a leave of absence without loss of pay if the Governor calls a State of Emergency or if the President of the United States orders military personnel to active service.

· States that employees will continue to receive salary or compensation from the State, less the amount of pay and allowances for military activities. However, employees are not allowed to accrue annual leave or sick leave during active duty, and in order to receive differential pay, employees must first exhaust all leave balances.

· Allows employees to receive differential pay or compensation one time, for up to 270 days, within a five year period.

· Requires the employee, within 60 days of the completion of active duty, to provide proof of duty. If the employee fails to provide proof of duty, the State may seek recovery of compensation.

· States that the Director of ADOA shall establish procedures to implement these new guidelines.

Arizona Health Care Cost Containment System (AHCCCS)

· Allocates an additional $3.5 million for FY 2002 in county acute care contributions for hospitalization and medical care to AHCCCS. These monies were originally collected in FY 2002 pursuant to Laws 2001, Chapter 344 (Proposition 204 implementation bill) from the counties to fund the Disproportionate Uncompensated Care pool (DUC), which would have been distributed to private hospitals.

· The $3.5 M collected from the counties would no longer be used for the DUC pool; instead being used in the Acute Care program for the provision of hospitalization and medical care. This results in a $3.5 million GF reduction in AHCCCS’ Acute Care program.

· Due to savings in AHCCCS’ Federal Emergency Services (FES) program, the Fee-For-Service (FFS) line item in Acute Care is reduced by $1.1 million in GF dollars and $2.1 million in federal dollars.

· The $1.1 million in FES GF savings is appropriated to the SES program to pay for doctor and clinic provider claims for SES enrollees. These monies will not be used for inpatient or outpatient hospital reimbursement.

Department of Corrections (DOC)

· Appropriates an additional $4 million from the Corrections Fund to the DOC for health care related costs. Additionally, reduces the lump sum reduction to the DOC budget by $600,000.

· Allows prisoners to include the time they served in county jails towards their earned released credit total. Earned released credit is calculated at one day for every six days served.

· Stipulates that, pursuant to rules adopted by the director of the DOC, each prisoner shall be placed in parole class one beginning on their sentence begin date.

Department of Economic Security (DES)

· Provides supplemental increases to DES for General Assistance and Adoption Services.

· States that DES will deposit $2,392,600 of prior year Health and Dental Reimbursements in to the General Fund by May 15, 2002 to reimburse the General Fund.

Department of Education (ADE)

· Provides a supplemental of $2 million to Arizona Department of Education for Basic State Aid.

Department of Juvenile Corrections (DJC)

· Delays the building of the DJC medical unit. This is a $600,000 savings to the Corrections Fund.

State Land Department

· Appropriates $2.7 million from the state general fund to the Fire Suppression Revolving Fund for suppression of wild land fires and support of other unplanned risk activities.

· States that all monies remaining unencumbered or unexpended on June 30, 2003 shall revert to the state general fund.

Osteopathic Board

· Provides a $29,000 other fund supplemental for the Osteopathic Board.

Department of Revenue (DOR)

· Allocates $75 million in FY 2003 to DOR for the costs associated with the case of Ladewig v. State of Arizona. From this allocation, DOR may use up to $15 million for administration and review of payments.

· Requires DOR, prior to the expenditure of any money for administrative expenses, to present an expenditure plan for JLBC approval.

School Facilities Board (SFB)

· States that for projects approved after December 31, 2001, unified school districts that do not have a high school are not eligible to receive high school space unless the school district qualifies for the geographic factors exemption in calculating minimum square footage requirements.

Makes technical and conforming changes.

Contains an Emergency Clause.

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45th Legislature