AN ACT

amending sections 20‑1098.18, 44-2039 and 44-3324, Arizona Revised Statutes; making appropriations; relating to regulation budget reconciliation.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1.  Section 20-1098.18, Arizona Revised Statutes, is amended to read:

START_STATUTE20-1098.18.  Captive insurance regulatory and supervision fund; purpose

A.  The captive insurance regulatory and supervision fund is established within the department consisting of monies deposited pursuant to section 20‑1098.01, subsection J.  The director shall administer the fund as prescribed in subsection subsections B and C of this section.  Monies in the fund are exempt from the provisions of section 35‑190 relating to lapsing of appropriations, except that, on the close of each fiscal year, all unencumbered monies in the fund exceeding one hundred thousand dollars revert to the state general fund.

B.  In addition to the purposes specified in subsection C of this section, the director may use up to one hundred thousand dollars in the captive insurance regulatory and supervision fund each fiscal year to administer programs in accordance with the department's other statutory responsibilities.

B.  C.  The director shall use monies in the captive insurance regulatory and supervision fund to pay the costs of administering this article and for reasonable expenses incurred in promoting this state's captive insurance industry, pursuant to written guidelines adopted by the director.

C.  D.  The department shall not receive a general fund appropriation for operation of the captive insurance program and promotion of this state's captive insurance industry for any fiscal year in which the department had at least twenty‑five captive insurers holding an active certificate of authority as of the immediately preceding calendar year end. END_STATUTE

Sec. 2.  Section 44-2039, Arizona Revised Statutes, is amended to read:

START_STATUTE44-2039.  Securities regulatory and enforcement fund; purpose

A.  A  The securities regulatory and enforcement fund is established and shall be administered by the commission under the conditions and for the purposes provided by this section.  Monies in the fund are exempt from the provisions of section 35‑190 relating to lapsing.

B.  Fees collected pursuant to section 44‑1861, subsections A, D and P and section 44‑3324 shall be deposited, pursuant to sections 35‑146 and 35‑147, in the securities regulatory and enforcement fund, except as provided in subsection D of this section and except that all other revenues collected in each fiscal year in excess of the amount appropriated from the fund by the legislature shall be deposited in the state general fund.

C.  Monies in the fund are subject to legislative appropriation.  The commission shall use the monies in the fund for education and regulatory, investigative and enforcement operations in the securities division and a part of general administrative and hearing expenses of the commission.

D.  On February 1 and June 30 of each year, monies deposited in the securities regulatory and enforcement fund pursuant to section 44-3324 are transferred to the state general fund. END_STATUTE

Sec. 3.  Section 44-3324, Arizona Revised Statutes, is amended to read:

START_STATUTE44-3324.  Notice filing fees

A.  When filing its initial notice filing, an open-end company shall pay a nonrefundable notice filing fee for sales to be made during the initial notice period.  The open‑end company may elect to pay either a minimum fee of two hundred dollars or a maximum fee of three thousand five hundred dollars.  If paying the maximum fee, an open-end company is not required to file a sales report at the expiration of the notice period.

B.  An open‑end company that renews its notice filing in accordance with section 44‑3322, subsection B shall pay both of the following nonrefundable notice filing fees no later than the expiration of the current notice period:

1.  For sales to be made during the current fiscal year, the open-end company may elect to pay either a minimum fee of two hundred dollars or a maximum fee of three thousand five hundred dollars.  If paying the maximum fee, an open‑end company is not required to file a sales report at the time of its next renewal notice filing.

2.  A fee for sales that occurred during the prior fiscal year, as those sales are reported pursuant to section 44‑3323, subsection C.  The fee is equal to one‑tenth of one per cent of the aggregate dollar amount of securities actually sold in this state during the prior fiscal year minus two hundred dollars, but in no event more than three thousand three hundred dollars.  If the maximum fee was previously paid for the prior fiscal year, the open‑end company is not required to pay any additional fees under this paragraph.

C.  An open-end company that does not renew its notice filing in accordance with section 44‑3322, subsection B and that did not previously pay the maximum fee for the notice period shall pay a nonrefundable notice filing fee no later than two months after the expiration of its current notice period for sales that occurred during the prior fiscal year and during the two month period from the end of the prior fiscal year to the expiration of the notice period, as those sales are reported pursuant to section 44‑3323, subsection D.  The fee is equal to one-tenth of one per cent of the aggregate dollar amount of securities actually sold in this state during the prior fiscal year and during the two month period from the end of the prior fiscal year to the expiration of the notice period minus two hundred dollars, but in no event more than three thousand three hundred dollars.  If the maximum fee was previously paid for the prior fiscal year, the open‑end company is not required to pay any additional fees under this subsection.

D.  When filing its initial notice filing, a unit investment trust shall pay a nonrefundable notice filing fee for sales to be made during the initial notice period.  The unit investment trust may elect to pay either a minimum fee of two hundred dollars or a maximum fee of three thousand five hundred dollars.  If paying the maximum fee, the unit investment trust is not required to file a sales report at the end of the expiration of the notice period.

E.  A unit investment trust that elects to renew its notice filing in accordance with section 44‑3322, subsection C shall pay both of the following nonrefundable notice filing fees:

1.  For sales to be made during the renewal notice period, a unit investment trust may elect to pay either a minimum fee of two hundred dollars or a maximum fee of three thousand five hundred dollars.  The fee shall be paid no later than the expiration date of the current notice period.  If paying the maximum fee, a unit investment trust is not required to file a sales report within two months after the expiration of the renewal notice period.

2.  A fee for sales that occurred during the expiring notice period, as those sales are reported pursuant to section 44‑3323, subsection E.  The fee shall be equal to one‑tenth of one per cent of the aggregate dollar amount of securities actually sold in this state by the unit investment trust during the prior notice period minus two hundred dollars, but in no event more than three thousand three hundred dollars.  The fee shall be paid no later than two months after the expiration date of the prior notice period.  If the maximum fee was previously paid for the expiring notice period, the unit investment trust is not required to pay any additional fees under this paragraph.

F.  A unit investment trust that does not renew its notice filing in accordance with section 44‑3322, subsection C and that did not previously pay the maximum fee for the notice period shall pay, within two months after the expiration of the notice period, a nonrefundable notice filing fee for sales that occurred during the prior notice period as such sales are reported pursuant to section 44‑3323, subsection F.  The fee is equal to one-tenth of one per cent of the aggregate dollar amount of securities actually sold in this state by the unit investment trust during the prior notice period minus two hundred dollars, but in no event more than three thousand three hundred dollars.  If the maximum fee was previously paid for the expiring notice period, the unit investment trust is not required to pay any additional fees under this subsection.

G.  An issuer that fails to timely file any sales report required by section 44‑3323 shall pay a late filing fee in the amount of two hundred dollars.  An issuer that fails to timely pay any notice filing fees required pursuant to this section shall pay the required notice filing fee together with a late payment fee equal to one-half of the amount of the required notice filing fee.

H.  The fees collected pursuant to this section shall be deposited as follows:

1.  Eighty per cent in the state general fund securities regulatory and enforcement fund established by section 44-2039.

2.  Ten per cent in the commerce and economic development commission fund established by section 41‑1505.10.

3.  Ten per cent in the investment management regulatory and enforcement fund established by section 44-3298.END_STATUTE

Sec. 4.  Department of insurance; fee and assessment adjustment suspension

Notwithstanding section 20-167, subsection F, Arizona Revised Statutes, and section 20-466, subsection J, Arizona Revised Statutes, the director of insurance shall not revise fees or assessments in fiscal year 2010-2011 for the purpose of meeting the requirement to recover at least ninety-five per cent but not more than one hundred ten per cent of the department of insurance's appropriated budget.

Sec. 5.  Registrar of contractors; residential contractors' recovery fund; contracted services, equipment and operational costs; fiscal year 2010‑2011

Notwithstanding section 32-1134, subsection A, paragraph 5, Arizona Revised Statutes, the registrar of contractors shall employ or contract with individuals and procure equipment and operational support, to be paid from or purchased with monies in the residential contractors' recovery fund, but not to exceed in fiscal year 2010-2011 fourteen per cent of the total amount deposited in the fund in fiscal year 2009-2010, as may be necessary to monitor, process or oppose claims filed by injured persons that may result in collection from the fund.

Sec. 6.  Office of administrative hearings; prompt hearings

Notwithstanding section 41-1092.05, subsection A, Arizona Revised Statutes, for fiscal year 2010-2011, the office of administrative hearings shall hold hearings for appealable agency actions and contested cases as soon as reasonably possible after a notice of appeal is filed or a request for a hearing is made.

Sec. 7.  Arizona board of osteopathic examiners in medicine and surgery; annual licensure

Notwithstanding section 32‑1825, Arizona Revised Statutes, on or before January 1, 2012, the Arizona board of osteopathic examiners in medicine and surgery may require a licensee to renew the licensee's license annually.  The board shall prorate the cost of the license to conform with the period of licensure.

Sec. 8.  Department of fire, building and life safety

If proposition 100 is not approved by the voters at the May 18, 2010 special election, for fiscal year 2010‑2011, notwithstanding any other law, the department of fire, building and life safety shall perform only those duties that the director of the department determines are possible within available appropriations.