Bill Text: AZ SB1616 | 2011 | Fiftieth Legislature 1st Regular | Chaptered
Bill Title: Revenue; 2011-2012; budget reconciliation
Sponsorship: Partisan Bill (Republican 16)
Status: (Passed) 2011-04-06 - Governor Signed [SB1616 Detail]
Download: Arizona-2011-SB1616-Chaptered.html
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House Engrossed Senate Bill |
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State of Arizona Senate Fiftieth Legislature First Regular Session 2011
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SENATE BILL 1616 |
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AN ACT
amending sections 9‑602 and 28‑5808, Arizona Revised Statutes; amending title 30, chapter 4, article 1, Arizona Revised Statutes, by adding section 30‑658; amending title 41, chapter 37, article 2, Arizona Revised Statutes, by adding section 41-3955.01; amending sections 42-1116.01 and 44‑313, Arizona Revised Statutes; making appropriations; prescribing transfers; relating to revenue budget reconciliation.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 9-602, Arizona Revised Statutes, is amended to read:
9-602. Fund operation
A. The Arizona convention center development fund consists of monies deposited pursuant to sections 42‑5029 and 42‑5030.
B. The state treasurer shall administer the fund.� The state treasurer shall invest and divest monies in the fund as provided by section 35‑313 as needed to facilitate distributions from the fund, and monies earned from investment shall be credited to the fund.
C. On or before August 1 of each year, the state treasurer shall distribute the amounts computed in subsection D of this section to each eligible city that has filed a certificate of completion of construction pursuant to section 9‑622 for each eligible project under section 9‑605.
D. The amount to be distributed pursuant to subsection C of this section shall be computed by dividing the total cost of the eligible project not funded from municipal sources as identified in the certificate of completion of construction filed pursuant to section 9‑622 by three hundred million and multiplying the quotient by the following amounts:
1. In the first fiscal year 2009-2010, five million dollars.
2. In the second fiscal year 2010-2011, ten million dollars.
3. In the third fiscal year 2011-2012, fifteen million zero dollars.
4. In the fourth fiscal year 2012-2013, twenty million dollars $5,595,000.
5. In the fifth fiscal year and each of the next thirty fiscal years, the amount distributed in the preceding fiscal year plus five hundred thousand dollars, except that the amount distributed shall not exceed thirty million dollars in any fiscal year years 2013-2014, 2014-2015, 2015-2016 and 2016-2017, $20,449,000.
6. In fiscal year 2017-2018, $22,499,000.
7. In fiscal year 2018-2019, $22,996,250.
8. In fiscal year 2019-2020, $23,499,950.
9. In fiscal year 2020-2021, $23,997,900.
10. In fiscal year 2021-2022, $24,498,450.
11. In fiscal year 2022-2023, $24,999,400.
12. In fiscal year 2023-2024, $25,498,550.
13. In fiscal year 2024-2025, $25,998,700.
14. In fiscal year 2025-2026, $26,497,375.
15. In fiscal year 2026-2027, $26,997,100.
16. In fiscal year 2027-2028, $27,495,125.
17. In fiscal year 2028-2029, $27,998,700.
18. In fiscal year 2029-2030, $28,499,525.
19. In fiscal year 2030-2031, $28,999,575.
20. In fiscal year 2031-2032, $29,495,550.
21. In fiscal year 2032-2033, $29,999,150.
22. In fiscal year 2033-2034, $29,996,250.
23. In fiscal year 2034-2035, $29,995,775.
24. In fiscal year 2035-2036, $29,999,975.
25. In fiscal year 2036-2037, $29,995,825.
26. In fiscal year 2037-2038, $29,995,850.
27. In fiscal year 2038-2039, $29,996,750.
28. In fiscal year 2039-2040, $29,995,225.
29. In fiscal year 2040-2041, $29,997,975.
30. In fiscal year 2041-2042, $29,996,150.
31. In fiscal year 2042-2043, $29,996,175.
32. In fiscal year 2043-2044, $29,998,925.
E. If sufficient distributions have been made to provide for all of the uses of the fund monies pursuant to section 9‑603 for an eligible project, the chief financial officer of the eligible city shall certify to the state treasurer that no additional distributions are required for the project, and on receiving the certification the state treasurer shall make no further distributions to the city for that project.
F. After the distributions required by subsection C of this section, any monies remaining in the fund on receipt of the certification of satisfaction of annual obligations pursuant to section 9‑623, or on the first Monday in August if a certificate of completion of construction has not been previously filed pursuant to section 9‑622, shall be transferred to the state general fund.
Sec. 2. Section 28-5808, Arizona Revised Statutes, is amended to read:
28-5808. Vehicle license tax distribution
A. Except as provided in subsection D of this section, the director shall distribute monies collected by the director pursuant to section 28‑5801, except monies deposited in the state general fund, on the first and fifteenth calendar day of each month as follows:
1. On the first calendar day, the director shall deposit, pursuant to sections 35‑146 and 35‑147, all of the Arizona highway user revenue fund monies received from the first through the fifteenth calendar day of the preceding month in the Arizona highway user revenue fund, except that on the first calendar day the director shall deposit, pursuant to sections 35‑146 and 35‑147, in the parity compensation fund established by section 41‑1720, 1.51 per cent of the portion of vehicle license tax revenues that otherwise would be deposited in the state highway fund from the first through the fifteenth calendar day of the preceding month.
2. On the fifteenth calendar day, the director shall deposit, pursuant to sections 35‑146 and 35‑147, all of the Arizona highway user revenue fund monies received from the sixteenth through the last day of the preceding month in the Arizona highway user revenue fund, except that on the fifteenth calendar day, the director shall deposit, pursuant to sections 35‑146 and 35‑147, in the parity compensation fund established by section 41‑1720, 1.51 per cent of the portion of vehicle license tax revenues that otherwise would be deposited in the state highway fund from the sixteenth through the last day of the preceding month.� On the fifteenth calendar day, the director shall distribute or deposit all other monies received during the entire preceding month as follows:
(a) The county general fund monies to the county general fund.
(b) The county transportation monies to the state treasurer to be apportioned among the counties for any purposes related to transportation, as determined by the board of supervisors, on the basis that the population of the unincorporated area of each county bears to the population of the unincorporated areas of all counties in this state.
(c) The incorporated cities and towns monies to the incorporated cities and towns of the county in proportion to the population of each.
3. The deposit of the monies in the parity compensation fund pursuant to paragraphs 1 and 2 of this subsection shall not impact the distribution of vehicle license tax revenues to the state general fund and to cities, towns and counties pursuant to this section.
B. The director shall distribute monies collected by the director pursuant to sections 28‑5804, 28‑5805, 28‑5806 and 28‑5810, except monies deposited in the state general fund, on the first and fifteenth calendar day of each month as follows:
1. On the first calendar day, the director shall deposit, pursuant to sections 35‑146 and 35‑147, 37.61 per cent of all monies received from the first through the fifteenth calendar day of the preceding month in the highway user revenue fund.
2. On the fifteenth calendar day, the director shall deposit, pursuant to sections 35‑146 and 35‑147, 37.61 per cent of all monies received from the sixteenth through the last day of the preceding month in the highway user revenue fund and distribute or deposit the following amounts as a percentage of all monies received pursuant to sections 28‑5804, 28‑5805, 28‑5806 and 28‑5810 during the entire preceding month as follows:
(a) 20.45 per cent to the county general fund.
(b) 4.91 per cent to the state treasurer to be apportioned among the counties for any purposes related to transportation, as determined by the board of supervisors, on the basis that the population of the unincorporated area of each county bears to the population of the unincorporated areas of all counties in this state.
(c) 20.45 per cent to the incorporated cities and towns of the county in proportion to the population of each.
(d) 1.64 per cent, pursuant to sections 35‑146 and 35‑147, in the state highway fund established by section 28‑6991.
(e) 4.09 per cent in the state highway fund established by section 28‑6991.
(f) 10.85 per cent, pursuant to sections 35‑146 and 35‑147, in the state general fund to aid school financial assistance.
C. For purposes of this section the population of a county, city or town shall be determined as provided by section 28‑6532 or 42‑5033.01.� If an incorporated city or town has had no federal enumeration of population, the supervisors shall both:
1. Appoint a qualified person to take an accurate census of the incorporated city or town.
2. Certify the results to the county treasurer, and the incorporated city or town shall share in the distribution as provided by this section.
D. On the fifteenth calendar day of each month, the director shall transfer to the state general fund from the portion of vehicle license tax revenues that otherwise would be deposited in the state highway fund pursuant to section 28‑6538, subsection A, paragraph 1, the following amounts:
1. An amount equal to ninety per cent of the fees collected pursuant to section 28‑4802, subsection A in the preceding month.
2. An amount equal to sixty per cent of the fees collected pursuant to section 28‑4802, subsection B in the preceding month.
E. On the fifteenth calendar day of each month, the director shall transfer to the state general fund from the portion of vehicle license tax revenues that otherwise would be deposited in the state highway fund pursuant to section 28‑6538, subsection A, paragraph 1 the difference between the actual amount of the vehicle license tax revenue collected as a result of registration of vehicles pursuant to section 28‑2159 in the preceding month for a five‑year registration period and the amount that would have been collected if those same vehicles had been registered for a two‑year vehicle registration period.
Sec. 3. Title 30, chapter 4, article 1, Arizona Revised Statutes, is amended by adding section 30-658, to read:
30-658. Radiation regulatory fee fund; exemption
The radiation regulatory fee fund is established consisting of fees directed by law to be deposited in the fund.� The agency shall administer the fund.� Monies in the fund are subject to legislative appropriation.� Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.
Sec. 4. Title 41, chapter 37, article 2, Arizona Revised Statutes, is amended by adding section 41-3955.01, to read:
41-3955.01. Seriously mentally ill housing trust fund; purpose
A. The seriously mentally ill housing trust fund is established. The director of the department of health services shall administer the fund.� The fund consists of monies received pursuant to section 44‑313 and investment earnings.
B. On notice from the department of health services, the state treasurer shall invest and divest monies in the fund as provided by section 35‑313, and monies earned from investment shall be credited to the fund.
C. Fund monies shall be spent on approval of the department of health services solely for housing projects for the seriously mentally ill.
D. The director of the department of health services shall report annually to the legislature on the status of the seriously mentally ill housing trust fund.� The report shall include a summary of facilities for which funding was provided during the preceding fiscal year and shall show the cost and geographic location of each facility and the number of individuals benefiting from the operation, construction or renovation of the facility.� The report shall be submitted to the president of the senate and the speaker of the house of representatives no later than September 1 of each year.
E. Monies in the seriously mentally ill housing trust fund are exempt from the provisions of section 35‑190 relating to lapsing of appropriations.
F. An amount not to exceed ten per cent of the seriously mentally ill housing trust fund monies may be appropriated annually by the legislature to the department of health services for administrative costs in providing services relating to the seriously mentally ill housing trust fund.
G. For any construction project financed by the department of health services pursuant to this section, the department of health services shall notify a city, town, county or tribal government that a project is planned for its jurisdiction and, before proceeding, shall seek comment from the governing body of the city, town, county or tribal government or an official authorized by the governing body of the city, town, county or tribal government. The department of health services shall not interfere with or attempt to override the local jurisdiction's planning, zoning or land use regulations.
Sec. 5. Section 42-1116.01, Arizona Revised Statutes, is amended to read:
42-1116.01. Department of revenue administrative fund
A. The department of revenue administrative fund is established consisting of monies from unclaimed property deposited in the fund pursuant to section 44-313.
B. The director shall administer the fund. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.
C. Subject to legislative appropriation, the director shall use monies in the fund solely for the administrative costs of the department.
Sec. 6. Section 44-313, Arizona Revised Statutes, is amended to read:
44-313. Deposit of monies
A. Except as otherwise provided in this section or section 44‑314, the department shall deposit, pursuant to sections 35‑146 and 35‑147, in the state general fund all monies received pursuant to this chapter, including the proceeds from the sale of abandoned property pursuant to section 44‑312, except that:
1. The first ten two million five hundred thousand dollars of the monies shall be deposited each fiscal year in the seriously mentally ill housing trust fund established by section 41‑3955 41‑3955.01.
2. The second two million five hundred thousand dollars of the monies shall be deposited in the housing trust fund established by section 41-3955.
2. 3. The second next twenty‑four million five hundred thousand dollars of the monies shall be deposited each fiscal year in the department of revenue administrative fund established by section 42‑1116.01.
B. The department shall deposit monies from unclaimed shares and dividends of any corporation incorporated under the laws of this state in the permanent state school fund pursuant to article XI, section 8, Constitution of Arizona.
C. The department shall deposit monies from unclaimed victim restitution payments in the victim compensation and assistance fund established by section 41‑2407 for the purpose of establishing, maintaining and supporting programs that compensate and assist victims of crime.
D. The department shall retain in a separate trust fund at least one hundred thousand dollars from which the department shall pay claims.
E. Before making the deposit, the department shall record the name and last known address of each person who appears from the holders' reports to be entitled to the property and the name and last known address of each insured person or annuitant and beneficiary. The department shall also record the policy or contract number of each policy or contract of an insurance company that is listed in the report, the name of the company and the amount due.� The department shall make the record available for public inspection during reasonable business hours.
Sec. 7. Fees for providing services; increases; intent; exemption from rule making
A. Notwithstanding any other law, the director of each of the following agencies may increase fees in fiscal year 2011‑2012 for services provided in fiscal year 2011-2012:
1. Office of pest management.
2. Radiation regulatory agency.
B. It is the intent of the legislature that the additional revenue generated by the fee increases shall not exceed the amounts listed below:
1. Office of pest management������������������ $525,000.
2. Radiation regulatory agency���������������� $500,000.
C. Monies received from any fees pursuant to subsection A, paragraph 1 of this section shall be deposited in the pest management fund established by section 32-2305, Arizona Revised Statutes.
D. Monies received from any fees pursuant to subsection A, paragraph 2 of this section shall be deposited in the radiation regulatory fee fund established by section 38‑658, Arizona Revised Statutes, as added by this act.
E. The agencies described in subsection A of this section are exempt from the rule making requirements of title 41, chapter 6, Arizona Revised Statutes, for the purpose of establishing fees pursuant to this section until July 1, 2012.
Sec. 8. County transfers; fiscal year 2011-2012; county expenditure limitations
A. Notwithstanding any other law, in fiscal year 2011‑2012, the following counties shall transfer the following amounts to the state treasurer for deposit in the state general fund:
1. Maricopa����������������������������������� $26,384,500
2. Mohave������������������������������������� 1,383,700
3. Pima��������������������������������������� 6,775,700
4. Pinal�������������������������������������� 2,597,400
5. Yavapai������������������������������������ 1,458,700
B. Notwithstanding any other law, a county may meet any statutory funding requirements of this section from any source of county revenue designated by the county, including funds of any countywide special taxing district in which the board of supervisors serves as the board of directors.
C. Contributions made pursuant to this section are excluded from the county expenditure limitations.
Sec. 9. Budget stabilization fund; exception
Notwithstanding section 35-144, Arizona Revised Statutes, for fiscal year 2011-2012, the legislature is not required to appropriate monies to or transfer monies from the budget stabilization fund.
Sec. 10. Department of transportation; distribution; state highway fund
A. Notwithstanding section 28-6538, Arizona Revised Statutes, from the revenues allocated pursuant to section 28-6538, subsection A, paragraph 1, Arizona Revised Statutes, and before the distribution required by section 28‑6538, subsection B, Arizona Revised Statutes, the department of transportation shall distribute the following amounts from the state highway fund in fiscal year 2011-2012 to the following counties to be used for highway purposes:
1. Apache������������������������������������� $485,900
2. Cochise������������������������������������ 578,900
3. Coconino����������������������������������� 686,400
4. Gila��������������������������������������� 274,000
5. Graham������������������������������������� 176,900
6. Greenlee����������������������������������� 58,800
7. La Paz������������������������������������� 270,300
8. Navajo������������������������������������� 584,900
9. Santa Cruz��������������������������������� 213,500
10. Yuma��������������������������������������� 760,400
B. The amounts distributed pursuant to subsection A of this section are in addition to any amounts allocated pursuant to section 28-6538, subsection A, paragraph 2, Arizona Revised Statutes.
Sec. 11. State and county tax recovery; delayed repeal; definitions
A. Notwithstanding title 42, chapter 1, article 3, Arizona Revised Statutes, the director of the department of revenue shall establish a tax recovery program as provided by this section.
B. If a taxpayer complies with the requirements of this section by applying to the department for recovery during the recovery period and complying with the applicable tax requirements in the time and manner prescribed by this section, the director shall abate or waive all or part of the civil penalties and impose interest at a reduced rate for tax liabilities that have been or could be assessed or imposed for any taxable period during the applicable liability period without the need for the taxpayer to show reasonable cause or the absence of wilful neglect.� For the purposes of this subsection, "liability period" means:
1. For taxpayers filing annually, any taxable period beginning from and after December 31, 2003 and ending before January 1, 2010.
2. For taxpayers having a 52-53 week tax year, any taxable period beginning from and after January 14, 2004 and ending before January 1, 2010.
3. For all other taxpayers, any taxable period beginning from and after December 31, 2004 and ending before January 1, 2010.
C. The director may grant recovery only for the taxable periods and tax liabilities identified in the application and only if the taxpayer satisfies all of the recovery conditions and requirements prescribed by this section.
D. To qualify for recovery, the taxpayer must:
1. Submit a complete and correct application as provided by subsection F of this section during the recovery period.
2. Pay the tax, plus any interest due pursuant to this section on or before October 1, 2011.
E. A taxpayer does not qualify for recovery under this section if:
1. An audit determination has become final with respect to the taxable period for which recovery is sought.
2. The taxpayer is a party to any criminal investigation or to any criminal administrative proceeding or criminal litigation that is pending on January 1, 2011 in any court of the United States or of this state for failure to file or failure to pay, or for fraud with respect to, any tax imposed by any law of this state and required to be collected by the department.
3. The taxpayer has been the subject of a past tax-related criminal investigation, indictment or prosecution if the investigation, indictment or prosecution resulted in a conviction, a guilty plea or a plea of no contest.
4. The taxpayer has been convicted of a crime relating to any period or assessment of a tax that is the basis of the penalty or interest with respect to which recovery is sought.
5. The taxpayer is a party to a closing agreement with the department for the tax periods included in the recovery application.
F. An application for recovery:
1. Must be on an application form furnished by the department that requires the applicant to identify the tax, the qualifying taxable period and the tax liability for which recovery is sought and to furnish other information prescribed by the director. The taxpayer shall include any returns and reports, including amended returns and reports, for the tax and taxable periods.� Any return or report filed under this section is subject to verification as provided by law.� A taxpayer who has insufficient information to file a full income tax return may file a gross income return and compute the tax pursuant to established rate brackets based on average tax rates for the applicable taxable years.
2. Must be filed with the department as prescribed by the director during the recovery period.
G. An application for recovery constitutes an express and absolute waiver of all administrative and judicial rights of appeal available at that time that have not run or otherwise expired as of the date of application. The state board of tax appeals and any court shall dismiss each such action or proceeding before that body on receiving a notification from the director that recovery has been granted for the taxable period for that taxpayer.� If the audit determination is not final, the taxpayer must withdraw from the proceeding or litigation before recovery is granted. A taxpayer that files an application for recovery retains all administrative and judicial rights of appeal with respect to any additional tax assessed in a subsequent audit by the department.
H. On reviewing the application and determining compliance with the requirements of the recovery program under this section:
1. The director shall notify the taxpayer regarding the application for recovery, waiving or abating the civil penalties and imposing a reduced interest rate for tax liabilities that were or could have been assessed for the taxable periods covered by the application.
2. No administrative, civil or criminal action may be brought for failure to comply with the tax requirements for the taxable periods covered by the application.
I. A grant of recovery under this section does not entitle any affected taxpayer or other person to a refund or credit of any amount previously paid.
J. The director shall deny or revoke the recovery of a person who files a false or fraudulent application, return or report for purposes of this section, or otherwise attempts to defeat or evade a tax through the recovery program.� If a person who applies for recovery fails to pay all amounts due as provided by this section, any recovery granted pursuant to this section is void.
K. The director may:
1. Do all things necessary to provide for the timely implementation of this section.
2. Adopt emergency rules pursuant to section 41-1026, Arizona Revised Statutes, as necessary to administer this section.
L. The tax revenues collected pursuant to recovery payments shall be distributed by the department as provided by law on or after October 1, 2011 but before November 1, 2011.
M. On or before December 1, 2011, the department shall submit a report to the governor, the speaker of the house of representatives and the president of the senate.� The report shall include:
1. The number of taxpayers that have applied for recovery under this section.
2. The number of taxpayers that have been granted recovery.
3. The amount of revenue received from taxpayers for the recovery period.
4. The amount of outstanding liability from taxpayers that have begun paying.
N. This section is repealed from and after December 31, 2011.
O. For the purposes of this section:
1. "Recovery period" means September 1 through October 1, 2011.
2. "Tax" means any tax administered or collected by the department of revenue on behalf of this state or a county except estate tax and ad valorem property taxes.
3. "Tax liability" includes any payment of estimated tax, withholding tax, interest and penalties required by law.
4. "Tax requirement" means:
(a) Timely filing a complete and correct tax return or report required by law.
(b) Timely paying a tax liability.
