ARIZONA STATE SENATE
Phoenix, Arizona
water quality fund
transfers; repeal
Reinstates the FY 2002-2003
state general fund support for the water quality assurance revolving fund.
Background
The water quality assurance
revolving fund (WQARF) helps pay for efforts by the Arizona Department of
Environmental Quality (ADEQ) to identify, assess and clean up soil and
groundwater that is contaminated with hazardous substances. WQARF is statutorily funded by an annual
transfer of approximately $15 million from corporate income tax collections, in
addition to special fees, legislative appropriations and cost recovery from
persons responsible for contamination.
During the Second Special
Session of the Forty-fifth Legislature, the corporate income tax funding for
WQARF was reduced to $5 million for FY 2001-2002, and eliminated for FY
2002-2003. For both fiscal years WQARF
will continue to receive funding from special fees in the amount of
approximately $3 million annually.
S.B. 1187 reinstates the
transfer of corporate income tax monies to WQARF in FY 2002-2003, restoring $15
million in funding for the fiscal year.
The fiscal impact of S.B.
1187 on the state general fund for FY 2002-2003 is approximately $15
million.
Provisions
1. Reinstates the transfer of $15 million in corporate income tax collections to WQARF in FY 2002-2003.
2. Reinstates the transfer of monies from the transaction privilege and severance clearing account to WQARF in FY 2002-2003.
3. Eliminates the requirement that all monies directed to WQARF from the collection of corporate income tax and legislative appropriations be appropriated by the Legislature.
4. Provides for a general effective date.
Prepared by Senate Staff
January 30, 2002