Bill Text: AZ HB2011 | 2020 | Fifty-fourth Legislature 2nd Regular | Introduced
Bill Title: Schools; bank accounts; vendor payments
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2020-01-16 - House read second time [HB2011 Detail]
Download: Arizona-2020-HB2011-Introduced.html
PREFILED NOV 19 2019
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REFERENCE TITLE: schools; bank accounts; vendor payments |
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State of Arizona House of Representatives Fifty-fourth Legislature Second Regular Session 2020
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HB 2011 |
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Introduced by Representative Fillmore
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AN ACT
amending section 15‑1221, arizona revised statutes; relating to school district governing board bank accounts.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 15-1221, Arizona Revised Statutes, is amended to read:
15-1221. Bank account; federal savings bonds; withholdings; vendor electronic payments; payroll direct deposit
A. The governing board may establish a bank account for the purpose of depositing the monies it withholds for each employee for payments under federal savings bond plans until the employee accumulates sufficient monies for the purchase of bonds under the plan. The governing board may make disbursements from the bank account only by check payable to the financial institution in which the monies are deposited for the purchase of bonds by the employee from the financial institution. The bank account may be interest‑bearing, and the governing board shall transfer any interest at the end of the fiscal year to the county treasurer for credit to the maintenance and operation fund of the school district.
B. The governing board may establish a bank account for the purpose purposes of making electronic payments to vendors and clearing accounts to the county in a manner that protects against potential fraud. Deposits from other accounts may be transferred to the bank account in amounts that are equal to the amount of each vendor payment. The account may be a revolving account, funded by the school district by a warrant requested from the county school superintendent and drawn on the county treasurer for an amount equal to the vendor's payment amount. The account may be an interest bearing interest-bearing account. The account shall be a clearing account maintaining a zero balance and shall not accumulate funds except for any account interest balances. The district governing board shall transfer any interest at the end of the fiscal year to the county treasurer for credit to the maintenance and operation fund of the school district.
C. The governing board of a school service program established pursuant to section 15‑365 may establish a bank account for the purpose of making electronic payments to vendors. The account may be a revolving account, funded by the school service program by a warrant requested from the county school superintendent and drawn on the county treasurer for an amount equal to the vendor's payment amount. The account may be an interest bearing interest-bearing account. The account shall be a clearing account maintaining a zero balance and shall not accumulate funds except for any account interest balances.
D. The governing board may establish a bank account for the purpose of making payroll direct deposit payments to financial institutions designated by school district employees. The account shall be funded by the school district with warrants requested from the county school superintendent and drawn by the county treasurer for an amount equal to the payroll direct deposit payment. The account shall be a clearing account that maintains a zero balance and that does not accumulate monies except for interest earned on the account. The school district governing board shall transfer any interest earned on the account at the end of the fiscal year to the county treasurer who shall credit a corresponding amount to the maintenance and operation fund of the school district.
E. The auditor general in conjunction with the department of education shall prescribe the procedures for accounting for the monies withheld pursuant to this section in the uniform system of financial records.
