ARIZONA STATE SENATE
Phoenix, Arizona
bonds; bridge construction;
technical correction
(NOW: HURF funds; local
distribution; reductions)
An emergency measure, H.B.
2645 suspends for three years the “maintenance of effort” expenditure and
reporting requirements and sanctions for failing to comply with these
requirements for Maricopa and Pima counties and cities in Maricopa and Pima
counties with a population in excess of 30,000.
Current law requires
Maricopa and Pima counties and cities in Maricopa and Pima counties with a
population in excess of 30,000 to maintain expenditures of local revenue for
street and highway purposes at a level computed as an average of local funds
expended in any four of the five fiscal years during the period between FY
1981-1982 and FY 1985-1986. Local funds
do not include any state or federal grants, interest income, bond proceeds,
highway user revenue fund (HURF) monies, local transportation assistance fund
(LTAF) monies or funds specifically collected for debt service. Cities and counties required to comply with
the maintenance of effort statutes must annually certify their compliance to
the Arizona Department of Transportation by December 31. Failure to comply or certify would result in
a reduction of a city’s or county’s HURF distribution. This “maintenance of effort” requirement was
imposed to ensure that large cities and counties continued to spend local
revenue for street improvements and maintenance.
1. Suspends the “maintenance of effort” expenditure and reporting requirements and sanctions for failure to comply with these requirements for counties with a population greater than 400,000 and cities with a population in excess of 30,000 located in such a county until July 1, 2005.
2. Makes technical and conforming changes.
3. Becomes effective on signature of the Governor.
TRANS 3/18/02 DPA/SE 8-0-0-2-0
APPROP 4/2/02 DPA/SE 10-0-0-6-0
3rd Read 4/8/02 49-1-10-0
Prepared by Senate Staff
April 10, 2002