PUBLIC SAFETY PERSONNEL RETIREMENT SYSTEM
2005 PROPOSED LEGISLATION

Updated May 20, 2005

FINAL UPDATE

***47^th Legislature � 1^st Regular Session adjourned sine die on Friday, May 13^th at 1:25 am.� Unless otherwise noted, enacted legislation will go into effect August 12, 2005.***

Bills in a border have been passed.
To review a bill in its entirety, please visit the State Legislature�s Website: www.azleg.state.az.us

H 2098� Tech Correction; Servicing Banks

This striker bill was amended to require state entities to make monthly or quarterly reports available to the public of those public monies and investments in the private sector that exceed $25,000.

Sponsor: Rep. Konopnicki

Current Action: 2/24 from House gov ref with amend #3541.

�

H 2404� Capitol Police; Transfer

Authority over the Capitol Police would be transferred from the Department of Administration to the Department of Public Safety.�

Sponsor: Rep. Pearce

Current Action: 1/27 referred to House appro P; 2/2 House appro P held; 2/9 from House appro P, do pass; 2/15 to House consent calendar; 2/16 from House rules okay; 2/21 passed House 59-0, ready for Senate; 2/22 referred to Senate gov, appro; 3/3 from Senate gov, do pass; 3/30 from Senate appro with amend #4233; 5/4 from Senate rules okay; 5/10 Senate COW approved with floor amend #4782, a substitute for amend #4233; 5/11 passed Senate 17-12, ready for House action on Senate amendments; 5/12 House concurred in Senate amendments and passed on final reading 41-8; ready for governor; GOVERNOR VETOED.

H 2473� Retirement; ASRS; Eligibility for AHCCCS

Would provide ASRS with the option of exploring the Arizona Health Care Cost Containment System (AHCCCS) business model and provider network by including a �retiree� as an �eligible person� in the AHCCCS definition statutes.��

Sponsor: Rep. McClure

Current Action: 1/18 referred to House pub-ret, hel; 1/31 House pub-ret held; 2/8 from House pub-ret, do pass.

H 2621� Retiree Health Insurance; Rural Subsidy

The provision that is set to expire June 30, 2005, whereby retirees living in certain rural areas (defined as �nonservice areas�) receive a subsidy for health insurance premiums, would be extended two years to June 30, 2007 only for those retirees who are medicare eligible.�

Sponsor: Rep. Konopnicki

Current Action: 2/9 referred to House pub-ret, gov ref, appro B.; 2/16 House gov ref amended, report awaited; 2/17 from House gov ref with amend #3353; 3/2 from House appro B with amend #3674; 3/8 from House appro B with corrected amend #3788 (replaces 3674); 3/9 from House rules okay; 3/10 House COW approved with amend #3788, amend 3353 was withdrawn; 3/21 passed House 45-7, ready for Senate; 3/23 referred to Senate fin, appro; 4/4 Senate fin, do pass; 4/6 Senate appro, do pass; 4/27 from Senate rules, okay; 4/28 Senate COW approved; 5/9 passed Senate 27-1, ready for governor; 5/20 signed by Governor, Chap. 297, Laws 2005.

H 2671� Retirement; State Retiree Health Insurance

The existing law on group health and accident coverage for retired public employees and officials would be replaced by a new requirement.� Under the new law, beginning January 1, 2007, retirees who elect not to obtain health insurance through their former employer would be entitled to obtain health and accident insurance through the ADOA.� The strike-everything amendment would establish a retiree health insurance committee to review and evaluate the recommendations of the Mercer Human Resource Consulting study on retiree health insurance.

Sponsor: Rep. Konopnicki

Current Action: 2/9 referred to House pub-ret, hel, appro P; 2/21 House pub-ret held; 3/1 from House pub-ret with amend #3650.

S 1359� Statewide Retiree Health Insurance Program

The Department of Administration would be authorized to establish group health and accident insurance for retired and disabled persons from all of the state�s four retirement plans.� Premiums may be deducted from retirement benefits.� The program would be implemented on January 1, 2007.

Sponsor: Sen. Huppenthal

Current Action: 2/1 referred to Senate fin.

S 1360� Retiree Health Insurance Committee

A Retiree Health Insurance Committee is formed to evaluate the options for retiree health insurance coverage proposed by the private entity retained by Legislative Council pursuant to Laws 2004, Ch. 325, � 8 (H 2542).� A report is due by the end of the year.

Sponsor: Sen. Huppenthal

S 1366� Minimum Employer Contribution Rate

Beginning with fiscal year 2006-2007, the PSPRS employer contribution rate floor would be increased from 2% to 5%.

Sponsor: Sen. Martin

Current Action: 2/1 referred to Senate fin; 2/17 Senate fin amended; 2/21 from Senate fin with amend #3412; 2/22 from Senate rules okay; 2/24 Senate COW approved with amend #3412; 3/2 passed Senate 29-1, ready for House; 3/8 referred to House pub-ret, appro B; 3/15 from House pub-ret do pass; 3/30 from House appro B with amend #4232; 4/11 from House rules okay; 4/12 House COW approved with amend #4232 and floor amend #4431; 4/14 passed House 53-3, ready for Senate action on House amendments; 4/19 Senate concurred in House amendments and passed on final reading 17-1, ready for governor; 4/25 signed by Governor, Chap. 208, Laws 2005.

S 1367 �Retirement; PSPRS; DROP Plan

Would allow a member of PSPRS who has 20 years of service and who has been called into active military duty for a period of no more than 48 months the option of electing to participate in the Deferred Retirement Option Plan (DROP) retroactive to either the member�s 20^th year service date or the day before the member began active military service.� The election must be made prior to the member resuming employment.� This provision applies retroactive to December 31, 2002.�

Sponsor: Sen. Martin

Current Action: 2/1 referred to Senate fin; 2/17 Senate fin held; 2/28 from Senate fin with amend #3601; 3/1 from Senate rules okay; 3/8 Senate COW approved with amend #3601; note short title change; 3/10 passed Senate 28-0, ready for House; 3/22 referred to House pub-ret, appro P; 3/29 from House pub-ret, do pass; 4/7 from House appro, do pass; 4/13 from House rules okay; 4/14 House COW approved; 4/18 passed House 58-0, ready for Governor; 4/25 signed by Governor, Chap. 209, Laws 2005.

~~S 1374� PSPRS; Reverse Deferred Retirement Option~~

Died on a technicality in Senate Finance.� Was brought back through a striker amendment under S 1375.

S 1375 �Retirement; PSPRS; Reverse Deferred Option

Would establish a �Reverse DROP.�� Any member who has not elected to participate in DROP and who has at least 20 years of credited service could elect to participate in Reverse DROP.� The member would designate either the first day of the calendar month immediately following the member�s completion of twenty years of credited service OR a date not more than sixty consecutive months before the date the member elects to participate in the Reverse DROP, whichever is later, as the member�s Reverse DROP Date.� The member would immediately retire and begin to receive a monthly pension calculated in the same manner as a normal pension using the factors of credited service and average monthly compensation as of the Reverse DROP Date.� The member would not receive a refund of contributions made after the Reverse DROP Date.� The member would receive an immediate lump sum distribution in an amount that is credited as though accrued monthly and that represents interest at a rate equal to three and one-half per cent.

Sponsor: Sen. Huppenthal

Current Action: 3/29 from House pub-ret with amend #4210; 4/11 from House rules okay; 4/12 House COW approved with amend #4210, note short title change; 4/14 passed House 51-7, ready for Senate action on House amendments; 4/28 Senate concurred in House amendments and passed on final reading 30-0, ready for governor; 5/4 signed by Governor, Chap. 258, Laws 2005.

S 1378 �PSPRS; Fund Manager; Membership

SB 1378 would amend the qualifications for certain positions on the Fund Manager board.�

Sponsor: Sen. Martin

Current Action: 2/1 referred to Senate fin; 2/17 Senate fin held; 2/24 Senate fin do pass; 2/28 from Senate fin to Senate consent calendar; 3/1 from Senate rules okay; 3/8 passed Senate 27-0, ready for House; 3/22 referred to House pub-ret; 3/29 from House pub-ret with amend #4211; 4/7 House COW approved with amend #4211; 4/12 passed House 56-2; ready for Senate action on House amendments; 4/14 Senate refused to concur in House amendments and named Martin, Garcia and Harper to a free conference committee; 4/18 House named McClure, Burns and Burton-Cahill to the free conference committee; 5/3 House adopted conference report #4670; 5/4 Senate adopted conference report #4670 and passed on final reading 28-1; awaits House final vote; 5/10 passed House on final reading 48-4, ready for governor; 5/20 signed by Governor, Chap. 319, Laws 2005.

S 1521 �Budget; State Budget Procedures

Budget bill dealing with various budgeting procedures, including the frequency of reports from the fund managers of PSPRS, CORP and EORP on employer and employee contribution rates is changed from even numbered years to every year.�

Sponsor: Sen. Burns

Current Action: 5/5 from Senate rules okay; 5/6 Senate COW approved with floor amend #4751, a substitute for amend #4645.� Passed Senate 29-0.� Substituted in House for identical HB 2772 and passed 37-20, ready for governor; 5/20 signed by Governor, Chap. 331, Laws 2005.