Bill Text: AZ HB2325 | 2010 | Forty-ninth Legislature 2nd Regular | Introduced
Bill Title: Business reporting; contracts; tax disclosures
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-01-20 - Referred to House COM Committee [HB2325 Detail]
Download: Arizona-2010-HB2325-Introduced.html
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REFERENCE TITLE: business reporting; contracts; tax disclosures |
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State of Arizona House of Representatives Forty-ninth Legislature Second Regular Session 2010
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HB 2325 |
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Introduced by Representative Chabin
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AN ACT
Amending title 44, Arizona Revised Statutes, by adding chapter 35; relating to business reporting.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 44, Arizona Revised Statutes, is amended by adding chapter 35, to read:
CHAPTER 35
BUSINESS REPORTING
ARTICLE 1. GENERAL PROVISIONS
44-7801. Definitions
In this chapter, unless the context otherwise requires:
1. "Consulting services" means work that a person other than a regular employee of a state contracting agency or local contracting agency does for or on behalf of the agency in return for compensation provided under the terms of a public contract. The work may include:
(a) Performing or providing research, analysis, assessments, data processing or computer programming, training or education, accounting, audits or evaluations, treatment or security.
(b) Giving professional advice or recommendations.
(c) Designing business or communications processes, procedures, methods or strategies.
(d) Other work related to the functions of the state contracting agency or local contracting agency.
2. "Contract" means any expenditure of public monies of at least twenty‑five thousand dollars for the purpose of establishing an agreement outlining a transaction between an entity and a government body to perform a specific service for compensation.
3. "Contracting agency" means any agency of this state or a local government unit that awards contracts.
4. "Contractor" means any person other than a regular employee of a state contracting agency or local contracting agency who performs work for or on behalf of the agency in return for compensation provided under the terms of a public contract.
5. "Corporate parent" means any person, association, corporation, joint venture, partnership or other entity that owns or controls fifty per cent or more of a recipient corporation.
6. "Corporation":
(a) Means any entity subject to the tax levied by title 43, chapter 11 or by section 11 of the internal revenue code of 1986, as amended.
(b) Does not include qualified personal service corporations as defined in section 448 of the internal revenue code of 1986, as amended.
7. "Date of subsidy" means the date that a granting body provides the initial monetary value of a development subsidy to a recipient corporation, except if the subsidy is for:
(a) The installation of new equipment, the date of subsidy is the date the corporation puts the equipment into service.
(b) Improvements to property, the date of subsidy is the date the improvements are finished, or the date the corporation occupies the property, whichever is earlier.
8. "Development subsidy" means any expenditure of public monies of at least twenty‑five thousand dollars for the purpose of stimulating economic development in this state, including bonds, grants, loans, loan guarantees, enterprise zones, empowerment zones, tax increment financing, grants, fee waivers, land price subsidies, matching monies, tax abatements, tax exemptions and tax credits.
9. "Doing business in this state" means any of the following:
(a) Owning or renting real or tangible personal property physically located in this state.
(b) Having employees, agents or representatives acting on the corporation's behalf in this state.
(c) Making sales of tangible personal property to purchasers that take possession of such property in this state.
(d) Performing services for customers located in this state.
(e) Performing services in this state.
(f) Earning income from intangible property that has a business situs in this state.
(g) Engaging in regular and systematic solicitation of sales in this state.
(h) Being a partner in a partnership engaged in any of the activities stated in subdivisions (a) through (g) of this paragraph.
(i) Being a member of a limited liability company engaged in any of the activities stated in subdivisions (a) through (g) of this paragraph.
10. "Full-time position" means a position in which an individual is employed by a recipient corporation for at least thirty‑five hours per week.
11. "Granting body" means any agency, board, office, public benefit corporation or authority of this state or a local government unit that provides a development subsidy.
12. "Local government unit" means an agency, board, commission, office, public benefit corporation or public authority of a political subdivision of this state.
13. "Part-time position" means a position in which an individual is employed by a recipient corporation for less than thirty‑five hours per week.
14. "Project site" means the site of a project for which any development subsidy is provided.
15. "Recipient contractor" means any person, association, corporation, joint venture, partnership or other entity that is awarded a contract bid.
16. "Recipient corporation" means any person, association, corporation, joint venture, partnership or other entity that receives a development subsidy.
17. "Small business" means a corporation whose corporate parent, and all subsidiaries thereof, that employed less than twenty full-time employees or had total gross receipts of less than one million dollars during the calendar year.
18. "State" means an agency, board, commission, office, public benefit corporation or public benefit authority of this state.
19. "Subsidy value” means the face value of a development subsidy provided to a recipient corporation.
20. "Tax expenditure" means a statutory provision, however denominated, that exempts certain persons, property, goods or services, in whole or in part, from the operation of a tax.
21. "Tax expenditure budget" means a compilation of information about this state's tax expenditures that includes data from the previous, current and upcoming fiscal years.
22. "Temporary position" means a position in which an individual is hired for a season or for a limited period of time.
44-7802. Private enforcement action
If a granting body or contracting agency fails to enforce any provision of this chapter, any individual who paid personal income taxes to this state in the calendar year before the year in dispute, or any organization representing such taxpayers, may bring a civil action in state court to compel enforcement under this chapter. The court shall award reasonable attorney fees and costs to the prevailing taxpayer or organization.
44-7803. Public record disclosure
All records required to be prepared or maintained under this chapter, including applications, cost analyses, audits, progress reports and any other records, are subject to disclosure under title 39, chapter 1, article 2.
44-7804. Preemption
This chapter shall not be construed to require or authorize any recipient corporation to reduce wages or benefits established under any collective bargaining agreement or state or federal prevailing wage law.
44-7805. Applicability
The requirements of this chapter are in addition to any other requirement in law except where specifically stated.
ARTICLE 2. APPLICANT AND RECIPIENT CORPORATION REPORTING
44-7821. Application for development subsidies
A. Each granting body and the applicant for a development subsidy shall complete an application for the subsidy on a form prepared by the department of commerce. The information required on the application shall include the following:
1. An application tracking number for the granting body and the project.
2. The name, street and mailing address and telephone number of the chief officer of the granting body.
3. The name, street and mailing address and telephone number of the chief officer of the applicant's corporate parent.
4. The name, street and mailing address and telephone number of the chief officer of the applicant.
5. The name, street and mailing address and telephone number of the granting agency official responsible for monitoring the subsidy.
6. The street address of the project site.
7. The name, type and description of the development subsidy.
8. The three-digit North American industry classification system number of the project site.
9. The total number of individuals employed by the applicant at the project site on the date of the application, specified by full-time, part‑time and temporary positions.
10. The total number of individuals employed in this state by the applicant's corporate parent and all subsidiaries of the applicant's corporate parent as of December 31 of the prior fiscal year specified by full-time, part-time and temporary positions.
11. The development subsidy or subsidies that the applicant is applying for with the granting body and the value of the subsidy or subsidies.
12. The name of any other granting body from which the applicant is seeking or has obtained development subsidies.
13. The aggregate value of all development subsidies that the applicant has requested or received from all sources.
14. The number of new jobs to be created by the applicant at the project site specified by full-time, part-time and temporary positions.
15. The average hourly wage to be paid to all current and new employees at the project site specified by full-time, part-time and temporary positions and enumerated by wage groups as follows:
(a) Six dollars or less an hour.
(b) six dollars and one cent to seven dollars an hour.
(c) Seven dollars and one cent to eight dollars an hour.
(d) Eight dollars and one cent to nine dollars an hour.
(e) Nine dollars and one cent to ten dollars an hour.
(f) Ten dollars and one cent to eleven dollars an hour.
(g) Eleven dollars and one cent to twelve dollars an hour.
(h) Twelve dollars and one cent to thirteen dollars an hour.
(i) Thirteen dollars and one cent to fourteen dollars an hour.
(j) Fourteen dollars and one cent or more an hour.
16. The type and amount of health care coverage to be provided by the applicant within ninety days of commencement of employment at the project site, including any costs to be borne by the employees.
17. The number of current employees who are provided health benefits.
18. The number of current employees and anticipated new employees represented by a collective bargaining agreement.
19. For project sites located in a metropolitan statistical area, as defined by the United States office of management and budget, the average hourly wage paid to nonmanagerial employees in this state for the industries involved at the project as established by the United States bureau of labor statistics.
20. For project sites located outside of metropolitan statistical areas, the average weekly wage paid to nonmanagerial employees in the county for industries involved at the project site, as established by the United States department of commerce.
21. Whether or not the project will be LEED certified and the project's rating, if applicable.
22. The start and end dates for the development subsidy.
23. The project site's proximity to mass transit, a regional rail line or a major highway off-ramp.
24. A statement as to whether the development subsidy may reduce employment at any other work site controlled by the applicant, or its corporate parent, in this state or in any other state resulting from automation, merger, acquisition, corporate restructuring or other business activity.
25. A statement confirming the subsidy applicant's past legal compliance, including compliance with minimum wage, employee rights and affirmative action laws.
26. A statement as to whether or not the project involves the relocation of work from another address and the number and the location of jobs to be relocated.
27. The projected net tax revenue accruing to the local governmental unit as a result of the development subsidy.
28. Inclusion of any material documents that are necessary to ensure the subsidy is reasonably crafted and geared towards its public interest within a cofinanced or leveraged project, such as insurance policies, rating agency reports or other pertinent documents.
29. The projected subsidy value.
30. A certification by the chief officer of the applicant as to the accuracy of the application.
B. If the granting body approves the application, it shall send a copy of the application to the department of commerce within fifteen days after the approval. If the application is not approved, the granting body shall retain the application in its records.
C. Before granting a development subsidy, each local governmental unit shall provide public notice and a hearing regarding the development subsidy. A public hearing and notice under this subsection is not required if a hearing and notice regarding the development subsidy is otherwise required by law.
44-7822. Application for contract bid
A. Each contracting agency and the applicant for a contract bid shall complete an application for the contract on a form prepared by the department of administration. The information required on the application shall include the following:
1. An application tracking number for the contracting agency and the contract.
2. The name, street and mailing address and telephone number of the chief officer of the contracting agency.
3. The name, street and mailing address and telephone number of the chief officer of the applicant's corporate parent.
4. The name, street and mailing address and telephone number of the chief officer of the applicant.
5. The name, street and mailing address, employer and employment category or job description of each person that will provide consulting services under the contract, including subcontractors.
6. The name, street and mailing address and telephone number of the contracting agency official responsible for monitoring the contract.
7. The three-digit North American industry classification system number of the entity applying for a bid.
8. The type of service required by contract.
9. The total number of individuals employed by the applicant on the date of the application specified by full-time, part-time and temporary positions.
10. The total number of individuals employed in this state by the applicant's corporate parent and all subsidiaries of the applicant's corporate parent as of December 31 of the prior fiscal year specified by full-time, part-time and temporary positions.
11. The bids the applicant is applying for with the contracting agency and the value of the contract or contracts.
12. The name of any other contracting agencies from which the applicant is seeking or has obtained bids.
13. The aggregate value of all bids the applicant has requested or received from all sources.
14. The number of contractors or subcontractors needed to perform the required services specified by full-time, part-time and temporary positions.
15. The types of services the contractor, subcontractor and any contract employees will provide under the contract.
16. The average hourly wage to be paid to each contractor, subcontractor and contract employee specified by full-time, part-time and temporary positions and enumerated by wage groups as follows:
(a) Six dollars or less an hour.
(b) Six dollars and one cent to seven dollars an hour.
(c) Seven dollars and one cent to eight dollars an hour.
(d) Eight dollars and one cent to nine dollars an hour.
(e) Nine dollars and one cent to ten dollars an hour.
(f) Ten dollars and one cent to eleven dollars an hour.
(g) Eleven dollars and one cent to twelve dollars an hour.
(h) Twelve dollars and one cent to thirteen dollars an hour.
(i) Thirteen dollars and one cent to fourteen dollars an hour.
(j) Fourteen dollars and one cent or more an hour.
17. The number of hours each person, including each subcontractor and contract employees, is expected to work in providing consulting services to the contracting agency under the terms of the contract.
18. The total compensation of each contractor and subcontractor.
19. The type and amount of health care coverage to be provided by the applicant within ninety days of commencement of the contract, including any costs to be borne by the employees.
20. The number of contractors or subcontractors associated with the contract represented by a collective bargaining agreement.
21. For applicants based in a metropolitan statistical area, as defined by the United States office of management and budget, the average hourly wage paid to nonmanagerial employees in this state for the industries involved at the project, as established by the United States bureau of labor statistics.
22. For applicants based outside of metropolitan statistical areas, the average weekly wage paid to nonmanagerial employees in the county for industries involved at the project, as established by the United States department of commerce.
23. The start and end dates for the contract.
24. A statement confirming the applicant's past legal compliance, including compliance with minimum wage, employee rights and affirmative action laws.
25. The projected savings accruing to the contracting agency.
26. The projected total cost of the contract.
27. A certification by the chief officer of the applicant as to the accuracy of the application.
B. If the contracting agency approves the bid, it shall send a copy of the bid to department of administration within fifteen days after the approval. If the application is not approved, the contracting agency shall retain the application in its records.
C. Before approving a contract bid, each contracting agency shall provide public notice and a hearing regarding the contract bid. A public hearing and notice under this subsection is not required if a hearing and notice regarding the contract bid is otherwise required by law.
ARTICLE 3. REPORTS ON SUBSIDIES AND CONTRACTS
44-7831. Establishment of measurable standards
A. Before entering into a public contract, a contracting agency shall establish measurable standards for assessing the quality of the goods or services, personal services, personal property, public improvements, public works, alterations, repairs or maintenance that a contractor will provide or perform under the contract. The contracting agency may develop the quality standards applicable to the public contract in cooperation with or as a result of negotiations with the contractor to which the contracting agency has awarded the public contract. Unless the contracting agency for good cause specifies otherwise, the quality standards may not be less than the highest standards prevalent in the industry or business most closely involved in providing the appropriate goods or services, personal services, personal property, public improvements, public works, alterations, repairs or maintenance.
B. If a contracting agency performs a cost analysis before a procurement for goods or services with an estimated contract price that exceeds twenty‑five thousand dollars, that analysis is subject to disclosure under title 39, chapter 1, article 2. The contracting agency shall provide a comparison of the findings of the cost analysis with the actual cost of the contract in the reports prescribed in section 44‑7833.
44-7832. Reports on economic development subsidies; civil penalty
A. Each granting body and the recipient corporation shall annually complete a report regarding the development subsidy on a form prepared by the department of commerce no later than thirty days after the start of the fiscal year. The report shall include the following information:
1. The application tracking number.
2. The name, street and mailing address and telephone number of the chief officer of the granting body.
3. The name, street and mailing address and telephone number of the chief officer of the recipient corporation.
4. The name, street and mailing address and telephone number of the granting body official responsible for monitoring the subsidy.
5. A summary of the number of jobs required, created and lost specified by full-time, part-time and temporary positions.
6. The name, type and description of the development subsidy.
7. The average hourly wage to be paid to all current and new employees at the project site specified by full-time, part-time and temporary positions and enumerated by wage groups as follows:
(a) Six dollars or less an hour.
(b) Six dollars and one cent to seven dollars an hour.
(c) Seven dollars and one cent to eight dollars an hour.
(d) Eight dollars and one cent to nine dollars an hour.
(e) Nine dollars and one cent to ten dollars an hour.
(f) Ten dollars and one cent to eleven dollars an hour.
(g) Eleven dollars and one cent to twelve dollars an hour.
(h) Twelve dollars and one cent to thirteen dollars an hour.
(i) Thirteen dollars and one cent to fourteen dollars an hour.
(j) Fourteen dollars and one cent or more an hour.
8. The Location of all employees by zip code.
9. The type and amount of health care coverage provided to the employees at the project site, including any costs borne by the employees.
10. The number of current employees represented by a collective bargaining Agreement.
11. Whether the project was LEED certified and the rating, if applicable.
12. The start and end dates and schedule for the development subsidy.
13. The project site's proximity to mass transit, regional rail line or a major highway off-ramp.
14. The comparison of the total employment in this state by the development subsidy recipient's corporate parent on the date of the application and the date of the report specified by full-time, part-time and temporary positions.
15. A statement as to whether the use of the development subsidy during the previous fiscal year has reduced employment at any other site controlled by the development subsidy recipient's corporation, or its corporate parent, in this state or in any other state as a result of automation, merger, acquisition, corporate restructuring or other business activity.
16. A statement as to whether any affordable housing has been displaced by the project.
17. A statement as to whether or not the project has involved the relocation of work from another address and the number and location of the jobs to be relocated.
18. The identification of all sources of public and private financing relating to the project.
19. The inclusion of any cost analysis or feasibility study that may have been conducted by this state or the granting body before the subsidy was awarded.
20. The inclusion of any material documents that are necessary to ensure the subsidy is reasonably crafted and geared towards its public interest within a cofinanced or leveraged project, such as insurance policies, rating agency reports or other pertinent documents.
21. The net tax revenue accruing to the local governmental unit as a result of the development subsidy.
22. the total subsidy value.
23. The Record of any action the granting body has taken against the development subsidy recipient for potential noncompliance.
24. A signed certification by the chief officer of the recipient corporation as to the accuracy of the progress report.
B. The granting body shall file the report specified in subsection A with the department of commerce for each project for which a development subsidy has been granted no later than sixty days after the start of the fiscal year.
C. After an initial report on a project for which a development subsidy was granted has been filed, the granting body shall indicate in each subsequent annual progress report whether the recipient corporation is still in compliance with its job creation, wage and benefit goals and whether the recipient corporation's corporate parent is still in compliance with its state employment requirements.
D. The Granting body and the recipient corporation shall compile and file annual reports as specified in subsections A, B and C for the duration of the development subsidy or for five years, whichever period is greater.
E. In addition to the reporting requirements of subsections A, B, c and D, no later than fifteen days after the second anniversary of the date of subsidy, the granting body shall file with the department of commerce a two‑year progress report including the same information as required under subsection A. The recipient corporation shall certify as to the accuracy of the report. The granting body shall state in the two-year report whether the recipient corporation has achieved its job creation, wage and benefit goals and whether the recipient corporation's corporate parent is still in compliance with its state employment requirements.
F. The department of commerce shall compile and publish all data from the progress reports in both written and electronic format. The report shall be included on the department of commerce's website. The website shall provide an easily accessible, searchable database of the specified data.
G. The granting body shall provide a final report at the conclusion of each development subsidy that shall contain the information described in subsection A in written form available to the public and through its Website. The granting body's website shall provide an easily accessible, searchable database of the specified data.
H. The granting body and the department of commerce shall have access at all reasonable times to the project site and the records of the recipient corporation in order to monitor the project and to prepare progress reports. A recipient corporation that fails to provide the granting body with the information required under this section within thirty days after the start of the fiscal year or access required under this section is subject to a civil penalty of not less than five hundred dollars per day.
44-7833. Reports on contracts; civil penalty
A. Each contracting agency and the recipient contractor shall annually complete a report regarding the contract on a form prepared by the department of administration no later than thirty days after the start of the fiscal year. The report shall include the following information:
1. An application tracking number for the contracting agency for the service.
2. The name, street and mailing address and telephone number of the chief officer of the contracting agency.
3. The name, street and mailing address and telephone number of the chief officer of the recipient contractor's corporate parent.
4. The name, street and mailing address and telephone number of the chief officer of the recipient contractor.
5. The name, street and mailing address, employer and employment category or job description of each person that provided consulting services under the contract, including subcontractors.
6. The name, street and mailing address and telephone number of the contracting agency official responsible for monitoring the contract.
7. The three-digit North American industry classification system number of the entity that received the bid.
8. The procedure the contracting agency used to solicit and award the contract. The record should note whether the procedure involved competitive bidding or competitive proposals and summarize the extent to which the procedure sought to solicit and succeeded in soliciting bids or proposals from minorities, women or emerging small businesses.
9. The Type of service required by contract.
10. The total number of individuals employed by the recipient contractor on the date of the application and the date of the report specified by full-time, part-time and temporary positions.
11. The total number of individuals employed in this state by the recipient contractor's corporate parent and all subsidiaries of the recipient contractor's corporate parent as of December 31 of the prior fiscal year, specified by full-time, part-time and temporary positions.
12. The bids the recipient contractor applied for with the contracting agency and the value of the contract or contracts.
13. The name of any other contracting agencies from which the recipient contractor is seeking or has obtained bids.
14. The aggregate value of all bids the recipient contractor has requested or received from all sources.
15. The number of contractors, subcontractors and contract employees who performed required services specified by full-time, part-time and temporary positions.
16. The types of services the contractor, subcontractor and any contract employees provide under the contract.
17. The average hourly wage paid to each contractor, subcontractor, and contract employee specified by full-time, part-time and temporary positions and enumerated by wage groups as follows:
(a) Six dollars or less an hour.
(b) Six dollars and one cent to seven dollars an hour.
(c) Seven dollars and one cent to eight dollars an hour.
(d) Eight dollars and one cent to nine dollars an hour.
(e) Nine dollars and one cent to ten dollars an hour.
(f) Ten dollars and one cent to eleven dollars an hour.
(g) Eleven dollars and one cent to twelve dollars an hour.
(h) Twelve dollars and one cent to thirteen dollars an hour.
(i) Thirteen dollars and one cent to fourteen dollars an hour.
(j) Fourteen dollars and one cent or more an hour.
18. The number of hours each person, including each subcontractor, works in providing consulting services to the contracting agency under the terms of the contract.
19. The total compensation of each contractor, subcontractor and any contract employees.
20. A summary of each amendment to the contract that changed the contract term, the contract price or the estimated total value of the contract.
21. A summary of the nature of the consulting services provided under the contract along with the identity of each person providing consulting services under the contract, including the identity of subcontractors.
22. The type and amount of health care coverage provided by the recipient contractor within ninety days of commencement of the contract, including any costs to be borne by the employees.
23. The number of contractors or subcontractors associated with the contract represented by a collective bargaining agreement.
24. For recipient contractors based in a metropolitan statistical area, as defined by the United States office of management and budget, the average hourly wage paid to nonmanagerial employees in this state for the industries involved at the project, as established by the United States bureau of labor statistics.
25. For recipient contractors based outside of metropolitan statistical areas, the average weekly wage paid to nonmanagerial employees in the county for industries involved at the project, as established by the United States department of commerce.
26. The start and end dates for the contract.
27. A statement confirming the recipient contractor's past legal compliance, including compliance with minimum wage, employee rights and affirmative action laws.
28. The savings accrued to the contracting agency.
29. The total cost of contract.
30. The Inclusion of any cost analysis, if previously conducted by the contracting agency.
31. A comparison of the actual cost with the findings of a cost analysis, if previously conducted by the contracting agency.
32. A copy of the contract and any revisions or amendments.
33. A certification by the chief officer of the recipient contractor as to the accuracy of the report.
B. Each contracting agency shall file the report specified in subsection A of this section with the department of administration for each contract no later than sixty days after the start of the fiscal year.
C. After an initial report on a contract has been filed, the contracting agency shall indicate in each subsequent annual progress report whether the recipient contractor is still in compliance with its savings, wage and benefit goals and has met the measurable standards set by the agency pursuant to section 44‑7831.
D. The contracting agency and the recipient corporation shall compile and file annual reports as specified in subsections A, B and C of this section for the duration of the contract or for five years, whichever period is greater.
E. In addition to the reporting requirements of subsections A, B, c and D of this section, no later than fifteen days after the second anniversary of the date of contract, the contracting agency shall file with the department of administration a two-year progress report including the same information as required under subsection A of this section. The recipient contractor shall certify as to the accuracy of the report. The contracting agency shall state in the two-year report whether the recipient contractor has achieved its savings, wage, and benefit goals and has met the measurable standards set by the agency pursuant to section 44‑7831.
F. The department of administration shall compile and publish all data from the progress reports in both written and electronic format. The report shall be included on the department of administration's website. The website shall provide an easily accessible, searchable database of the specified data.
G. The contracting agency shall provide a final report at the conclusion of each contract that contains the information described in subsection A of this section in written form available to the public and through its Website. The contracting agency's website shall provide an easily accessible, searchable database of the specified data.
H. A recipient contractor that fails to provide the contracting agency with the information required under this section within thirty days after the start of the fiscal year is subject to a civil penalty of not less than five hundred dollars per day.
44-7834. Contract audits
A. The auditor general may audit a recipient contractor's performance under a public contract with a state contracting agency. The audit shall use generally accepted accounting principles and may:
1. Examine the recipient contractor's books, papers, correspondence and other records related to the public contract.
2. Assess whether the recipient contractor has met the quality standards set forth in the contract pursuant to section 44‑7831.
3. Determine whether the recipient contractor has met commercial standards of good faith and fair dealing in the contractor's course of dealing with the contracting agency.
4. Examine other issues that the auditor general deems germane to assessing the recipient contractor's performance under the contract.
B. A state contracting agency may request the auditor general to audit a contractor's performance under a public contract for any reason and at any time the public contract is in effect or for a period of six years after the date on which the public contract terminates.
C. The terms of a public contract shall require a recipient contractor to keep books, papers and other records and to document the contractor's performance under the terms of the public contract, with particular reference to the contractor's compliance with the quality standards set forth in the contract in as much detail as will enable the auditor general to conduct an audit under this section. The recipient contractor shall keep the records described in this subsection for a period of no less than six years after the date on which the public contract terminates.
D. A local contracting agency shall designate a person to audit contractor performance under a public contract with the local contracting agency. The person the local contracting agency designates to conduct the audit shall do so in accordance with the standards prescribed in this section and shall follow as closely as practicable the procedures employed by the auditor general.
E. The contracting agency and the recipient contractor shall cooperate with the auditing agency in all respects and shall permit full access to all information that the auditing agency deems necessary for a true and complete review.
ARTICLE 4. UNIFIED REPORTING
44-7841. Unified tax expenditure budget
A. No later than sixty days after the end of the fiscal year, department of revenue shall compile a tax expenditure budget for the previous fiscal year and present the tax expenditure budget, including an analysis of tax expenditures, to the governor and the legislature. The tax expenditure budget shall report on tax expenditures with revenue impacts of at least five thousand dollars in the aggregate for a specific tax expenditure and shall include:
1. The amount of uncollected state tax revenues resulting from every tax credit, abatement, exemption and reduction provided by this state or a local governmental unit, including gross receipts, income, sales, use, raw materials, excise, property, utility and inventory taxes.
2. The name of each corporate taxpayer that claimed any tax credit, abatement, exemption or reduction under paragraph 1 of this subsection and the dollar amount received by each corporation.
3. A projection of the costs of tax expenditures for all significant general fund revenue sources.
4. The identification of each tax expenditure and its statutory basis, purpose, year of enactment and date of repeal, if any.
5. The identification, to the extent possible, of the beneficiaries of each tax expenditure, including the number of businesses that used the tax expenditure and the number of businesses that potentially qualified for but failed to use the tax expenditure.
6. The identification of any unintended consequences of the tax expenditure that have come to the attention of the department.
7. An estimate of total state revenue distributed for tax expenditures in the current fiscal year.
8. An estimate of total state revenue to be distributed for tax expenditures in the upcoming fiscal year.
9. All state appropriated expenditures for economic development, including line item budgets for every state funded entity concerned with economic development, including the department of commerce, the department of economic security, university research programs, workforce investment boards, economic development commissions, industrial development authorities, regional development authorities and finance authorities.
10. A comprehensive presentation of the costs of all development subsidies to this state during the prior fiscal year, an estimate of the anticipated costs of development subsidies for the current fiscal year and an estimate of the costs of all development subsidies for the fiscal year of the requested budget, including:
(a) The total cost to this state of tax expenditures resulting from the development subsidies, the costs for each category of tax expenditure and the amounts of tax expenditures by geographical area.
(b) The cost to this State of all appropriated expenditures for development subsidies, including line item budgets for every State funded entity concerned with economic development.
B. Any tax credit, abatement, exemption or reduction received by a corporation of less than five thousand dollars each shall not be itemized. The department of revenue shall report an aggregate dollar amount of the expenditures and the number of companies so aggregated for each tax expenditure.
C. The department of revenue may request from a state agency or a local government agency official information necessary to complete the tax expenditure budget required by this section. An agency or official shall comply with a request made pursuant to this section by the department.
D. Before the conclusion of any tax expenditure under subsection A, paragraph 1 of a value of at least five thousand dollars, the department of revenue shall submit a report to the legislature and governor to assess whether to reappraise the particular tax credit, abatement, exemption or reduction that includes:
1. A statement of the purpose served by the tax expenditure.
2. An appraisal of the tax expenditure's effectiveness in serving its purpose.
3. An evaluation of whether the tax expenditure serves a public need.
4. An evaluation of whether other statutes have enhanced or impeded the tax expenditure's effectiveness in serving its purpose.
5. An appraisal of whether the tax expenditure promotes economic growth and development.
6. An estimate of the amount of revenue lost each fiscal year because of the tax expenditure.
7. A recommendation as to whether the tax expenditure should be allowed to expire, be renewed or be repealed.
8. Any other relevant information.
E. The department of revenue shall compile and publish all data from the report in both written and electronic format. The report shall be included on the department of revenue's website. The website shall provide an easily accessible, searchable database of the specified data.
44-7842. Unified reporting of contracts
A. Each contracting agency shall provide a comprehensive report to the department of administration no later than three months after the end of the fiscal year detailing:
1. The total number of contracts that the contracting agency awarded in the previous fiscal year along with the total expenditures for all of the contracts up until the date on which the agency produced the report, including contracts for:
(a) Consulting services.
(b) Construction.
(c) Equipment.
(d) Grants.
(e) Leases.
(f) Miscellaneous services.
(g) Printing.
(h) Repayment agreements.
(i) Intergovernmental agreements.
(j) Goods.
2. The total workforce of the contracting agency.
3. The total number of persons, including subcontractors, that provided consulting services to the agency.
4. A calculation of contractors as a percentage of total agency workforce.
5. The total number of minorities, women or emerging small businesses that provided consulting services to the contracting agency.
6. The total number of bids or proposals the contracting agency received in connection with each contract.
7. A description of the types of contracts the contracting agency awarded.
8. The frequency of contracts awarded during the previous fiscal year arranged by the number of bids or proposals and the source selection method.
9. The number of contracts not approved by the contracting agency during the previous fiscal year, the reasons for disapproval arranged by contracting agency and source selection method and the number and outcome of bid protests.
10. The total compensation the contracting agency paid to each person including subcontractors, that provided consulting services to the contracting agency under all contracts the contracting agency awarded to the person.
11. The average wages paid.
12. The total savings the contracting agency accrued from using contractors.
13. The estimated number and costs of contracts to be awarded in the following fiscal year.
14. The total cost of all contracts awarded.
15. A comparison of the number of contracts the contracting agency solicited and awarded independently to the number of contracts the contracting agency solicited and awarded in connection with a cooperative procurement process.
B. The department of administration shall compile the data provided under subsection A and provide to the legislature and governor a comprehensive presentation of the data that includes the following:
1. The costs of all contracts to this state during the prior fiscal year.
2. An estimate of the anticipated costs of contracts for the current fiscal year.
3. An estimate of the costs of all contracts for the fiscal year of the requested budget.
C. The department of administration shall compile and publish all data from the report in both written and electronic format. The report shall be included on the department of administration's website. The website shall provide an easily accessible, searchable database of the specified data.
44-7843. Unified reporting of property tax reductions; abatements
A. Each political subdivision that collects property taxes shall annually submit a report to department of revenue regarding any real property in the political subdivision's jurisdiction that has received a property tax abatement or reduction during the fiscal year. The report shall contain information including:
1. The name of the property owner.
2. The address of the property.
3. The start and end dates of the property tax reduction or abatement.
4. The schedule of the tax reduction or abatement.
5. Each tax abatement, reduction and exemption for the property.
6. The amount of property tax revenue not paid to the political subdivision as a result of the reduction or abatement.
B. Each political subdivision that collects property taxes shall also submit a report to the department of revenue setting forth the total property tax revenue not paid to the political subdivision during the fiscal year as a result of all property tax reductions and abatements in the political subdivision's jurisdiction.
C. The reports required under subsections A and B shall be prepared on two forms prepared by the department of revenue and shall be submitted to the department by the political subdivision no later than three months after the end of the fiscal year.
D. The department of revenue shall compile and publish all data from the report in both written and electronic format. The report shall be included on the department of revenue's website. The website shall provide an easily accessible, searchable database of the specified data.
E. If a political subdivision that collects property taxes fails to submit its reports to the department of revenue within the prescribed time, the department of revenue shall notify the state comptroller and the comptroller shall withhold further tax reductions or abatements to the delinquent political subdivision until the political subdivision files its reports with the department of revenue.
ARTICLE 5. CORPORATE TAX DISCLOSURE
44-7851. Tax disclosure statement; applicability
The following corporations, if doing business in this state, shall file with the secretary of state the statement described in section 44‑7852:
1. All publicly traded corporations, including corporations traded on foreign stock exchanges.
2. All corporations with fifty per cent or more of the voting stock of which is owned, directly or indirectly, by a publicly traded corporation.
44-7852. Tax disclosure statement; content
A. A tax disclosure statement shall be filed annually in an electronic format specified by the secretary of state no more than thirty days following the filing of the tax return required by title 43, chapter 11 or, in the case of a corporation not required to file such a tax return, within ninety days of the filing of such corporation's federal tax return, including the corporation's inclusion in a federal consolidated return. The tax disclosure statement shall contain the information specified in subsections B, C, D and E of this section and the following information:
1. The name of the corporation and the street address of its principal executive office.
2. The name of any corporation that owns, directly or indirectly, fifty per cent or more of the voting stock of the corporation and the street address of the former corporation's principal executive office, if different from paragraph 1 of this subsection.
3. The corporation's four-digit North American industry classification system code number.
4. A unique code number that is assigned by the secretary of state to identify the corporation and that will remain constant from year to year.
B. The following information reported on or used in preparing the corporation's tax return filed under title 43, chapter 11, or, in the case of a corporation included in a state consolidated tax return, reported on or used in preparing the state consolidated tax return filed under section 43‑947, or, in the case of a corporation not required to file a tax return under title 43, chapter 11, the information that would be required to be reported on or used in preparing the tax return were the corporation required to file such a return:
1. Arizona gross income as defined by section 43‑1101.
2. Arizona taxable income before net operating loss subtraction or apportionment.
3. Property, payroll and sales apportionment factors.
4. Calculated overall apportionment factor in this state.
5. Total business income apportioned to this state.
6. Net operating loss pursuant to section 43‑1123.
7. Total nonbusiness income and the amount of nonbusiness income allocated to the state.
8. Total Arizona taxable income.
9. Total tax before credits.
10. Tax credits claimed with each credit individually enumerated.
11. Tax due.
12. Tax paid.
13. Amount of tax paid under protest, if any.
C. The following is additional information:
1. Total deductions taken on the federal return for management services fees, for rent and for royalty, interest, license fee and similar payments for the use of intangible property paid to any affiliated entity that is not included in the state consolidated income tax return, if any, that includes the corporation and the names and principal executive office addresses of the entities to which the payments were made.
2. A description of the source of any nonbusiness income reported on the return and the identification of the state to which such income was reported.
3. A listing of all corporations included in the consolidated tax return that includes the corporation, if such a return is filed, and the corporations' state identification number assigned under this section.
4. Full-time-equivalent employment of the corporation in this state on the last day of the taxable year for which the return is being filed and for the three previous taxable years.
5. In the case of a publicly traded corporation incorporated in the United States or an affiliate of such a publicly traded corporation, profits before tax reported on the securities and exchange commission form 10−K for the corporation or the consolidated group of which the corporation is a member for the corporate fiscal year that contains the last day of the taxable year for which the return is filed.
6. Accumulated tax credit carryovers, enumerated by credit.
D. The following information reported on or used in preparing the corporation's tax return filed under title 43, chapter 11, or, in the case of a corporation not required to file a tax return under title 43, chapter 11, the information that would be required to be reported on or used in preparing the tax return were the corporation required to file such a return:
1. Arizona gross income of the unitary group of which the corporation is a member.
2. Arizona taxable income of the unitary group of which the corporation is a member before net operating loss subtractions or apportionment.
3. Property, payroll and sales apportionment factors of the corporation as calculated on the combined report.
4. Calculated overall apportionment factor in this state for the corporation as calculated on the combined report.
5. Total business income of the corporation apportioned to this state.
6. Net operating loss pursuant to section 43‑1123, if any, of the corporation apportioned to this state.
7. Total nonbusiness income of the corporation and the amount of nonbusiness income allocated to this state.
8. Total Arizona taxable income of the corporation.
9. Total tax before credits.
10. Tax due.
11. Tax paid.
12. Amount of tax paid under protest, if any.
E. The following is additional information:
1. Total deductions taken on the federal return for management services fees, for rent and for royalty, interest, license fee and similar payments for the use of intangible property paid to any affiliated entity that is not included in the unitary combined group that includes the corporation and the names and principal office addresses of the entities to which the payments were made.
2. A description of the source of any nonbusiness income reported on the return and the identification of the state to which such income was reported.
3. A listing of all corporations included in the unitary group that includes the corporation, the corporation's state identification number assigned under this section, if applicable, and a listing of all variations in the unitary group that includes the corporation used in filing corporate income or franchise tax returns in any of the following states:
(a) Alaska.
(b) Arizona
(c) California.
(d) Colorado.
(e) Hawaii.
(f) Idaho.
(g) Illinois.
(h) Kansas.
(i) Maine.
(j) Minnesota.
(k) Montana.
(l) Nebraska.
(m) New Hampshire.
(n) North Dakota.
(o) Oregon.
(p) Utah.
(q) Vermont.
4. Full-time-equivalent employment of the corporation in this state on the last day of the taxable year for which the return is being filed and for the three previous taxable years.
5. In the case of a publicly-traded corporation incorporated in the United States or the affiliate of such a publicly-traded corporation, profits before tax reported on the securities and exchange commission form 10-K for the corporation or the consolidated group of which the corporation is a member for the corporate fiscal year that contains the last day of the taxable year for which the return is filed.
6. Accumulated tax credit carryovers, enumerated by credit.
44-7853. Alternative statement option for corporations not required to file tax return
In lieu of the statement described in section 44‑7852, a corporation doing business in this state but not required to file a tax return under title 43, chapter 11 may elect to file a statement with the Secretary of State on a form specified by the secretary of state containing the following information:
1. The information specified in section 44‑7852, subsection A.
2. An explanation of why the corporation is not required to file a corporate income tax return in this state. This explanation may take the form of checking one or more possible explanations specified on the form.
3. Identification of which of the following ranges the corporation's total gross receipts from sales to purchasers in this state fell into the taxable year for which this statement is filed:
(a) Less than ten million dollars.
(b) At least ten million dollars but less than fifty million dollars.
(c) At least fifty million dollars but less than one hundred million dollars.
(d) At least one hundred million dollars but less than two hundred fifty million dollars.
(e) At least two hundred fifty million dollars.
44-7854. Supplemental information; statement
Any corporation submitting a statement required by this article may submit supplemental information that, in the corporation's sole judgment, could facilitate proper interpretation of the information included in the statement. The mechanisms of public dissemination of the information contained in the statements shall ensure that any supplemental information be publicly available and that notification of its availability shall be made to any person seeking information contained in a statement.
44-7855. Amended tax disclosure statements; requirement
If a corporation files an amended tax return, the corporation shall file a revised statement within sixty calendar days after the amended return is filed. If a corporation's tax liability for a taxable year is changed as the result of an uncontested audit adjustment or final determination of liability by the department of revenue or by a court of law, the corporation shall file a revised statement within sixty calendar days after the final determination of liability.
44-7856. Public access to tax disclosure statements
The statements required under this article shall be a public record. The secretary of state shall make all information contained in the statements required under this article for all filing corporations available to the public on an ongoing basis in the form of a searchable database accessible through the Internet. The secretary of state shall make available and set charges for providing copies on appropriate computer readable media of the entire database for statements filed during each calendar year as well as hard copies of an individual annual statement for a specific corporation. A statement for any corporation for a particular tax year shall not be publicly available until the first day of the third calendar year that follows the calendar year in which the particular tax year ends.
44-7857. Enforcing compliance
The accuracy of the statements required under this article shall be attested to in writing by the chief operating officer of the corporation and shall be subject to audit by the department of revenue as the agent of the secretary of state in the course of and under the normal procedures applicable to corporate income tax return audits. The secretary of state shall develop and implement an oversight and penalty system applicable to both the chief operating officer of the corporation and the corporation itself to ensure that corporations doing business in this state, including those not required to file a return under title 43, chapter 11, shall provide the required attestation and disclosure statements, respectively, in a timely and accurate manner. The secretary of state shall publish the name and penalty imposed on any corporation subject to a penalty for failing to file the required statement or filing an inaccurate statement. The secretary of state shall adopt rules to implement this article.
