PUBLIC SAFETY PERSONNEL RETIREMENT SYSTEM

2009 PROPOSED LEGISLATION

 

Updated July 2, 2009

 

Bills enclosed 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

 

 

HB2110          PUBLIC RETIREMENT PLANS; FEDERAL CHANGES

 

Various technical changes to EORP, CORP, and PSPRS to conform the plans to federal law.

 

Provisions

·   Mandates that the plan make payments under the regulations of the Internal Revenue Code (IRC).

·   Instructs that payments of benefits shall not begin any later than April 1, following the year which the member reaches 70.5 years of age or the date the member terminates employment.

·   Caps member compensation at $150,000 from January 1, 1996 through December 31, 2001.

·   Caps member compensation at $200,000 beginning January 1, 2002.

·   States that if the compensation is established for a time less than 12 months, the compensation limit for that period of time will equal the dollar limit for the calendar year during which the period of time begins multiplied by time served.

·   Authorizes the fund manager to adjust annual compensation limits under IRC regulation.

·   Sets forth a maximum annual pension of the lesser of $90,000 or 100% percent of the member’s annual salary for years beginning before 1995.

·   Sets forth a maximum annual pension of $90,000 for years beginning in 1995 and ending before 2002.

·   Sets forth a maximum annual pension of $160,000 for years ending in and after 2002.

·   States that the maximum annual pensions will be determined by section 415 of the IRC, and allows the pensions to be reduced to prevent disqualification under this federal law.

·   Allows members to redeem services through a lump-sum payment, trustee-trustee transfer, direct rollover, an eligible rollover distribution from an individual retirement account, or annuity.

·   Determines that lump-sum payments are eligible for direct rollover distribution.

·   Validates service credits for active military service occurring before the member’s current employment if:

·   The member was honorably discharged from the military.

·   The active military service does not exceed 48 months.

·   The period of service for which the member receives credited service is not on account with another retirement system, unless provided by 10 U.S.C. § 12736.

·   The member pays to purchase the previous active military service.

·   States that an active member who volunteers or is ordered by the military may not receive more than 60 months of military service under the Uniformed Services Employment and Reemployment Rights Act.

·   Requires employer and employee contributions to continue if:

·   The employee was an active member of the plan the day prior to beginning military service.

·   The employee entered into the armed forces or is a member of the National Guard.

·   The employee complies with the notice and return to work requirements of 38 U.S.C. § 4312.       

·   Mandates that contributions made as a result of an active member volunteering or being ordered into military service must be for the period of time beginning on the date the member began military service and ending on the later of:

·   The date the member is separated from military service.

·   The date the member is released from service-related hospitalization or two years after the start of service-related hospitalization, whichever is earlier.

·   The date the member dies as a result of military service.

·   Stipulates that a member may not receive credit for any military service in excess of 60 months. 

·   Instructs the employer and member contributions to be based on the contributions the member would have received but for the military service, and if that rate is indeterminate the contribution rate is based on the member’s average rate of compensation during the 12-month period immediately preceding the military service.

·   Allows the member to make contributions up to three times the length of military service so long as that time does not exceed 60 months.

·   Requires the employer to make their contributions in a lump sum after the member has made his or her contributions, or upon receipt of the member’s death certificate.

·   Directs the employer to make contributions to the plan for any military differential wage pay the employer would have paid to members serving in the military.

·   Includes the time of military service in the computation of the member’s total credited service.

·   Mandates that the employer and member contributions on the member’s return to employment if the member performs military service due to a presidential call-up, not exceed 48 months.

·   States that the statute must be interpreted in a manner consistent with section 414(u) of the IRC.

·   Clarifies that a deferred annuity is not a retirement benefit and that annuitants are not permitted to receive a tax-equity benefit allowance, death benefits, benefit increases or group health and accident coverage for retirees.

·   States that a retired member of PSPRS is not eligible for pension payments if he or she becomes employed by the employer from which the member retired earlier than 12 months after the member’s retirement.

·   Stipulates that the statutes relating to deferred retirement under PSPRS apply to new members and current members who have not already applied for and begun receiving benefits.

·   Defines actuarial equivalent, annuitant, direct rollover, distributee, eligible retirement plan and eligible rollover distribution.

·   Makes the provisions of the bill retroactive to from and after December 31, 1993.

·   Contains a conditional enactment clause.

·   Makes technical and conforming changes.

 

Sponsor:  Rep. Boone

 

Current Action:  1/28 House Public Employees, Retirement & Entitlement Reform Committee with amendment #4004; 2/10 from House Rules Committee - Okay; 2/19 House COW approved with amendment #4004; 5/12 passed House; ready for Senate; 6/8 referred to Senate Retirement & Rural Development Committee; Hearing: Senate Retirement & Rural Development Committee - 6/18 at 9:00 a.m., Senate Rm. 3; 6/18 from Senate Retirement & Rural Development Committee with amendment #4660; Hearing:  Senate Rules Committee, 2nd Floor Caucus Room; 6/22 Senate Caucus; 6/22 from Senate Rules okay; 6/24 Senate COW approved with amendment #4660; 6/25 Senate Third Reading; 6/25 passed Senate; ready for House action on Senate amendments.

 

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HB2109          RETIREMENT SYSTEMS AND PLANS; AMENDMENTS

 

Changes in statutes governing the Elected Officials Retirement Plan, the Public Safety Personnel Retirement System and the Corrections Officer Retirement Plan pertaining to procedures used when the plan receives an order regarding distribution of a member's community property.  The proposed changes of HB2109 are already within A.R.S sections 9-956, 38-822, 38-860, and 38-910.  HB2109 relocates the latter provisions into alternative subsections of the aforementioned sections. 

 

Provisions

 

Sponsor:  Rep. Boone

 

Current Action:  1/21 House Public Employees, Retirement & Entitlement Reform Committee - DO PASS recommendation; 2/10 from House Rules Committee - Okay; 2/9 to House Consent Calendar (deadline for objections 2/12 at 2:30 p.m.); 2/12 House Consent; 6/15 House Third Reading, passed House; ready for Senate; 6/16 Referred to Senate Retirement & Rural Development Committee; Hearing:  Senate Retirement & Rural Development Committee - 6/25 at 9:00 a.m., Senate Rm. 3; 6/26 from Senate Retirement & Rural Development Committee - do pass.

 

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HB2327          RETIREMENT; PSPRS; OMNIBUS AMENDMENTS 

 

Various changes to statutes governing the Public Safety Personnel Retirement System, including exempting investment contracts made by the fund manager from requirements to be audited by the state, to certify that the contractor has no business operations in Sudan or Iran, and to certify that the contractor complies with federal and state immigration laws and nondiscrimination laws. Also allows the fund manager not to comply with local board decisions that violate the internal revenue code or threaten the plan’s status, gives the fund manager authority to settle litigation against the System, designates PSPRS as a jural entity that may sue and be sued, and makes clarifying changes to benefits for surviving spouses and children of deceased members.

 

Sponsor:  Rep. Boone

 

Current Action:  2/10 House Public Employees, Retirement & Entitlement Reform Committee - DO PASS recommendation; 2/16 to House Consent Calendar (deadline for objections 2/19 @ 3:15 p.m.); 2/17 from House Rules Committee – Okay; 2/19 House Consent; 6/16 passed House; ready for Senate; 6/16 referred to Senate Retirement & Rural Development Committee; Hearing:  Senate Retirement & Rural Development Committee - 6/18 at 9:00 a.m., Senate Rm. 3; 6/19 from Senate Retirement & Rural Development Committee with amendment #4661; Hearing:  Senate Rules Committee, 2nd Floor Caucus Room; 6/22 Senate Caucus; 6/22 from Senate Rules okay; 7/1 Senate COW approved with amendment #4661 and floor amendment #4963 and amendment #4964.

 

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SB1116           TECH CORRECTION; PSPRS; DEFERRED RETIREMENT 

 

Minor change in Title 38 (public officers and employees) pertaining to the Public Safety Personnel Retirement System. Apparent striker bus.

 

Sponsor:  Sen. S. Allen

 

Current Action:  6/4 referred to Senate Rules Committee only; 6/11 Referred to Senate Finance Committee.

 

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SB1161           RETIREMENT; PSPRS; REEMPLOYMENT 

 

If a retired member of the Public Safety Personnel Retirement System is re-hired by the same employer in any capacity within 30 days of the member's retirement or becomes employed in the same position with the previous employer at any time after retirement, the person's retirement benefit payments are suspended. They will resume after termination of the re-employment but at the rate to which the person was entitled before re-employment.

 

First sponsor:  Sen. Pearce

Others: Rep. Burges, Rep. Kavanagh, Rep. Konopnicki, Rep. Reagan, Rep. Tobin, Sen. Gorman, Sen. Harper, Sen. Verschoor

 

Current Action:  6/4 referred to Senate Retirement & Rural Development Committee; Hearing:  Senate Retirement & Rural Development Committee - 6/11 at 9:00 a.m., Senate Rm. 3; 6/11 from Senate Retirement & Rural Development Committee - do pass; Hearing:  Senate Rules Committee - 6/15 at 1:00 p.m., 2nd Flr. Caucus Room; 6/16 from Senate Rules Committee - okay; 6/16 Senate COW approved; 6/17 passed Senate; ready for House; 6/17 referred to House Public Employees, Retirement & Entitlement Reform Committee; Hearing:  House Government Committee - 6/26 at 9:00 a.m., House Rm. 4.  Striker:  LAW ENFORCEMENT OFFICERS; DISCIPLINE; JUST CAUSE; 6/25 withdrawn from House Public Employees, Retirement & Entitlement Reform Committee and additionally referred to governor; 6/26 from House Government Committee with amendment #4863; 6/30 from House Rules Committee - okay.

 

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SB1174           STATE EMPLOYEE HEALTH INSURANCE; COVERAGE 

 

Adds a definition of "dependent" in statutes pertaining to health care benefits for state employees and retired public employees and elected officials and their dependents that specifically excludes domestic partners.

 

Sponsor:  Sen. Pearce

 

Current Action:  6/4 Referred to Senate Government Institutions Committee.

 

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SB1349           PUBLIC RETIREMENT SYSTEMS; RURAL SUBSIDY

 

Provisions requiring the four state retirement plans to pay a health insurance premium subsidy to retired members in medically underserved areas are deleted.

 

First sponsor:  Sen. Gould

 

Current Action:  6/4 Referred to Senate Retirement & Rural Development Committee; Hearing:  Senate Retirement & Rural Development Committee - 6/18 at 9:00 a.m., Senate Rm. 3, Striker: INTRASTATE COMMERCE WEAPONS EXEMPTION; 6/18 from Senate Retirement & Rural Development Committee with amendment #4659.

 

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HB2636          BUDGET; GENERAL GOVERNMENT; FY09-10

 

HB2636 makes statutory and session law changes related to general government budget reconciliation in order to implement the FY 2009-10 state budget.

 

Provisions:

 

            Authorizes county governments to implement reductions in classified civil servant employee work hours in order to address budget shortfalls or structural imbalances.

            Exempts mandatory county furloughs for civil service employees from the appeals process.

            Authorizes state agency directors to implement reductions in covered employee work hours to comply with mandated fiscal year 2009-10 state General Fund appropriation reductions.

            Specifies that procedures for implementing reductions will be prescribed by the Director of the Arizona Department of Administration (ADOA) and exempts the Director from rule making requirements.

            Repeals ADOA’s authority to enter into a lease-purchase agreement for the design and construction of a state emergency operations center.

            Allows the Secretary of State to publish the Landlord and Tenant Act electronically.

            Eliminates state General Fund funding for nursing assistant applicant fingerprinting.

            Eliminates the $25,000,000 advance appropriation to the 21st Century Fund for FY 2009-10.

            Suspends the appropriations format for biennial state budget units.

            Reduces the state General Fund appropriation for the Military Installation Fund by $4,800,000 in FY 2009-10.

            Reduces the aggregate amount of all liabilities incurred during a declaration of emergency in FY 2009-10.

            Suspends the Tourism Fund formula for FY 2009-10.

            Increases contribution rates for members of the Elected Officials’ Retirement Plan, Public Safety Personnel Retirement System, and Corrections Officer Retirement Plan by 1.93 percent if current rates are less than fifty percent of the total contribution rate.

            Stipulates that contribution rate increases cannot exceed fifty percent of the total contribution rate.

            Reverts non-lapsing state General Fund appropriated monies that remain unexpended and unencumbered at the close of FY 2009-10 to the state General Fund.

            Requires that all unrestricted federal monies received from July 1, 2009 through June 30, 2010 be deposited into the state General Fund for the payment of essential government services.

            Makes technical and conforming changes.

 

First sponsor:  Rep. Yarbrough

Others:  Rep. Adams, Rep. Kavanagh, Rep. McComish, Rep. Tobin

 

Current Action:  5/5 House Appropriations Committee - do pass recommendation; 6/4 House COW, House Caucus; 6/4 from House Rules Committee – okay; 6/4 House COW approved with floor amendment #4363.  See S1035.

 

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SB  1028         BUDGET RECONCILIATION; CRIMINAL JUSTICE; FY 09-10

(TECH CORRECTION; PRIVATE FUNDS; DISPOSITION)

 

Purpose

 

Makes necessary statutory and session law changes relating to the criminal justice system to implement the FY 2009-2010 budget.

 

Background

 

The Arizona Constitution prohibits substantive law from being included in the general appropriations, capital outlay appropriations and supplemental appropriations bills.  However, it is often necessary to make statutory and session law changes to effectuate the budget.  Thus, separate bills called budget reconciliation bills (BRBs) are introduced to enact these provisions. Because BRBs contain substantive law changes, the Arizona Constitution provides that they become effective on the general effective date, unless an emergency clause is enacted.

 

The strike everything amendment to S.B. 1028 contains the budget reconciliation provisions for changes relating to criminal justice.

 

Provisions

 

Probation

 

1.  Increases, from $10 to $20, the surcharge levied on every fine, penalty and forfeiture imposed for criminal offenses and any civil penalty for a civil traffic violation, specified motor vehicle violations or for a violation of the game and fish statutes.

2.  Increases, from 60 to 65, the maximum number of probationers that a deputy adult probation officer is required to supervise.

3.  Increases, from $50 to $75, the probation fees for a person on intensive probation and allows, instead of only any amount greater than $40, any amount of the fee to be used to supplement monies used for probation and surveillance officer salaries and for the superior court adult probation department’s support of programs and services.

 

Courts

 

4.  Requires a majority of the justices of the peace of the county to endorse the state aid funding allocation plan before it is submitted to the Arizona Supreme Court.

5.  Changes, in a county with a population of less than 1,500,000 persons, the payment of the compensation and employee related expenditures of a justice of the peace as follows:

     a)  Through June 30, 2010, reduces the state’s payment from 40 percent to 19.25 percent and increases the county’s payment from 60 percent to 80.75 percent.

     b)  Beginning July 1, 2010, requires the county to pay 100 percent.

6.  Suspends, in FY 2009-2010, the provisions relating to supplanting of state monies contained in the State Aid to the Courts Fund, Local Courts Assistance Fund, Alternative Dispute Resolution Fund, Local Alternative Dispute Resolution Fund, Adult Probation Services Fund, Juvenile Probation Fund and Community Punishment Plan.  Requires, the Arizona Supreme Court to report to the Joint Legislative Budget Committee identifying any decrease in county funding related to these suspended provisions including the reasons for the decrease.

7.  Suspends, for FY 2009-2010, and requires, beginning FY 2010-2011, electronic submittal of the following reports:

     a)  Juvenile Intensive Probation.

     b)  Community Punishment Program Evaluation.

     c)  Emancipation of Minors.

     d)  Drug Treatment and Education Fund.

     e)  Lengthy Trial Fund.

     f)  Child Support Committee.

     g)  Domestic Relations Committee.

 

Arizona Department of Corrections (ADC)

 

8.  Prohibits ADC or any private prison contractor from providing correctional health care services, including medical and dental care services, beyond federally required health care services.

9.  Requires ADC to issue a request for proposal to privatize all correctional health services and award a contract to a private provider of correctional health services that will provide such services, including all medical and dental services, at a cost below the FY 2007-2008 total cost to the state for such services.  Requires the services provided to only include federally required health care services.

10.  Requires, in consultation with ADC, the Arizona Department of Administration to issue a request for proposals for a concession agreement allowing private vendors to operate the Arizona State Prison complexes at Yuma, Perryville and Eyman.

11.  Allows a private vendor to operate one or more prison complexes.

12.  Requires a concession agreement to be for a fixed term of 50 years and an annual cost efficiency savings to this state.

13.  Requires the annual cost efficiency savings to be equally divided between this state and the private vendor.

14.  Requires, not later than October 1, 2009, and before issuance, the request for proposals to be submitted for review to the Joint Committee on Capital Review (JCCR).

15.  Requires, not later than March 1, 2010, a proposed concession agreement to be submitted for review to JCCR.

16.  Specifies that the following does not apply to any concession agreement:

       a)  The requirement that the proposer of the contract allow the state to cancel the contract at any time after the first year of operation, without penalty to this state, on giving 90 days written notice.

       b)  The restriction that a contract to provide correctional services for an initial period cannot exceed ten years.

       c)  The option to renew for two subsequent renewal periods of five years each renewal period.

       d)  The use of a multi-term contract for materials or services or for job-order contracting construction services.

17.  Specifies, except as otherwise provided, the following apply to any concession agreement:

       a)  Agreements with federal or private agencies and institutions.

       b)  Adult incarceration contracts for correctional services.

       c)  Private prison facility contracts.

       d)  Adult incarceration private contractors.

       e)  Reimbursing the county for prosecution expenses.

18.  Contains an intent clause relating to the privatization of prison operations.

19.  Requires, notwithstanding any other law, ADC to report actual FY 2008-2009, estimated FY 2009-2010 and requested FY 2010-2011 expenditures for each line item delineated in the FY 2009-2010 general appropriations act when ADC submits the FY 2010-2011 budget request.  Requires the information submitted for each line item to contain as much detail as submitted in previous years for prior line items.

20.  Allows, notwithstanding any other law, any monies deposited in the Transition Office Fund to be used for any costs to operate transition programs.

 

Defensive Driving

 

21.  Allows, in lieu of attending a defensive driving school, an individual who is eligible to attend a defensive driving school to pay an alternate fee of $282.  Requires the court to dismiss the civil or criminal traffic citation and prohibits a record of the citation if the individual pays the alternate fee.

22.  Requires the court to collect the alternate fee, retain $85 of the fee and transmit the remainder of the fee to the State Treasurer for deposit in the following funds in the specified amounts:

       a)  $5 in the Criminal Justice Enhancement Fund.

       b)  $15 in the Defensive Driving School Fund.

       c)  $45 in the Crime Laboratory Operations Fund.

       d)  $132 in the state General Fund.

 

Crime Laboratory Operations Fund

 

23.  Establishes the Crime Laboratory Operations Fund consisting of the $45 surcharge an individual pays for attending a defensive driving school, which is currently deposited in the state General Fund, and $45 from the alternate fee an individual is allowed to pay in lieu of attending a defensive driving school.  Requires, subject to legislative appropriation, the monies to be used for crime laboratory services.

24.  Specifies the following is effective retroactively to July 1, 2009:

       a)  Prohibits, beginning July 1, 2009, until the effective date of this act and notwithstanding the defensive driving school surcharge collected, no more than $2 million to be deposited in the state General Fund.

       b)  Requires, beginning July 1, 2009, until the effective date of this act and notwithstanding any amount of the defensive driving surcharge monies collected, in excess of $2 million to be deposited in the Crime Laboratory Operations Fund.

       c)  Requires, beginning July 1, 2009, until the effective date of this act and if the surcharge monies collected are less than $2 two million, the State Treasurer to transfer the difference between the $2 million and the amount collected from the Crime Laboratory Operations Fund to the state General Fund on or before June 30, 2010.

 

Miscellaneous

 

25.  Excludes, for the purpose of computing retirement benefits for the Public Safety Personnel Retirement System, payments made directly or indirectly by the employer to the employee for work performed for a third party on a contracted basis or any other type of agreement under which the third party pays or reimburses the employer for the work performed by the employee for that third party.

26.  Restricts full-time dispatchers from participation in the Corrections Officer Retirement Plan to a person who was employed as a full-time dispatcher before October 1, 2009, if the governing body or agency of the employer of an eligible group enters into a joinder agreement with the fund manager to bring its full-time dispatchers into this plan before October 1, 2009.

27.  Decreases, from $3,484,000 to $980,000, in FY 2009-2010 the appropriation to the Deoxyribonucleic Acid Identification System Fund.

28.  Suspends, for FY 2009-2010 and notwithstanding the payment installment schedule by the Arizona Department of Transportation, the statutory caps limiting the level of Highway User Revenue Fund monies and State Highway Fund monies available to fund the Department of Public Safety (DPS) Highway Patrol costs.

29.  Allows, for FY 2009-2010 and notwithstanding monies used for the consumer protection division, the Attorney General to use monies in the Consumer Fraud Revolving Fund for any operating expenses incurred by the Department of Law, including any cost or expense associated with the tobacco master settlement agreement arbitration.

30.  Requires, for FY 2009-2010 and notwithstanding any other law, any monies distributed from the Criminal Justice Enhancement Fund to the state General Fund to be deposited in the Crime Laboratory Assessment Fund.

31.  Specifies, notwithstanding the DPS quarterly distribution to political subdivisions that operate crime labs, monies distributed to the Crime Laboratory Assessment Fund are for use by DPS and exempt from distribution to political subdivisions.

32.  Requires, in FY 2009-2010, the Drug and Gang Prevention Resource Center (Resource Center) to enter into an agreement with the Arizona Criminal Justice Commission (ACJC) to provide $235,200 to ACJC from the Resource Center Fund to fund the Arizona Youth Survey.

33.  Makes conforming changes relating to the increase of probation supervision fees for adult offenders and parolees and probationers who are being supervised under the Interstate Compact.

34.  Contains a conforming clause.

35.  Makes technical changes and conforming changes.

36.  Becomes effective on the general effective date, with a retroactive provision as noted.

 

First sponsor: Sen. Pearce

 

Current Action:  4/23 Referred to Senate Appropriations Committee; 5/20 Senate Appropriations Committee amended; 5/26 from Senate Appropriations Committee with amendment #4307; 6/3 Senate Caucus; 6/4 Senate COW & Third Reading; 6/4 from Senate Rules Committee with a technical amendment; Senate COW approved with amendment #4307 and floor amendment #4344, a substitute for the rules technical amendment; Short Title Change; Ready for House; 6/4 Substituted in House for identical HB2638 and passed; ready for governor; 7/1 Vetoed.

 

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SB 1035          BUDGET RECONCILIATION; GENERAL GOVERNMENT; FY09-10

(TECH CORRECTION; SCHOOL BONDS)

 

Purpose

 

Makes necessary statutory and session law changes relating to general government to implement the FY 2009-2010 budget.

 

Background

 

The Arizona Constitution prohibits substantive law from being included in the general appropriations, capital outlay appropriations and supplemental appropriations bills.  However, it is often necessary to make statutory and session law changes to effectuate the budget.  Thus, separate bills called budget reconciliation bills (BRBs) are introduced to enact these provisions.  Because BRBs contain substantive law changes, the Arizona Constitution provides that they become effective on the general effective date, unless an emergency clause is enacted.

 

The strike everything amendment to S.B. 1035 contains the budget reconciliation provisions for changes relating to general government.

 

Provisions

 

Establishing Lawful Presence

 

1.  Requires a recipient of federal and state public benefits (benefit) to present one of the following demonstrating lawful presence to the entity that administers the benefit:

     a)  an Arizona driver’s license issued after 1996 or an Arizona nonoperating identification license;

     b)  a birth certificate, delayed birth certificate or United States certificate of birth abroad;

     c)  a United States passport or foreign passport with a United States visa;

     d)  an I-94 travel authorization with a photograph;

     e)  a United States Citizenship and Immigration Services employment authorization document or refugee travel document;

     f)  a United States certificate of naturalization or certificate of citizenship; or

     g)  a tribal certificate of Indian blood or Bureau of Indian Affairs affidavit of birth.

2.  Requires applicants for benefits to sign a sworn affidavit attesting to the validity of the presented document.

3.  Establishes the failure to report violations of federal immigration law by an employee of the state that administers any federal or state public benefit as a class 2 misdemeanor.

4.  States that a resident of Arizona has standing in any court of record to bring suit against agents or agencies of the state who fail to require that a public benefit recipient demonstrate their lawful presence in the United States.

 

Miscellaneous

 

5.  Establishes, in FY 2009-2010, Public Safety Personnel Retirement System (PSPRS) employee contribution rates at the lesser of 9.58 percent or one-half of the employer and employee contribution rate percentage combined unless the employer contribution rate is less than or equal to 7.65 percent.

6.  Establishes, in FY 2009-2010, Corrections Officer Retirement Plan (CORP) employee contribution rates at the lesser of 10.34 percent or one-half of the employer and employee contribution rate percentage combined unless the employer contribution rate is actuarially determined to be less than or equal to 8.41 percent.

7.  Establishes, in FY 2009-2010, CORP employee contribution rates for dispatchers at the lesser of 9.89 percent or one half of the employer and employee contribution rate percentage combined unless the employer contribution rate is actuarially determined to be less than or equal to 8.41 percent.

8.  Establishes, in FY 2009-2010, Elected Officials’ Retirement Plan (EORP) employee contribution rates at the lesser of 8.93 percent or one half of the employer and employee contribution rate percentage combined.

9.  Reduces, in FY 2009-2010, PSPRS, CORP and EORP employer contribution rates by an amount that is equal to the revised employee contribution rate minus the employee’s statutorily fixed contribution rate.

10.  Eliminates a FY 2009-2010 appropriation of $25 million to the Arizona Twenty-First Century Competitive Initiative Fund.

11.  Eliminates the Department of Administration’s ability to enter into a lease purchase agreement for the design and construction of a state emergency operations center.

12.  Allows appropriations for all budget units in FY 2009-2010 to be limited to one fiscal year.

13.  Reduces the appropriation to the Department of Commerce for the Military Installation Fund by $4.8 million in FY 2009-2010.

14.  Limits the aggregate amounts of liabilities incurred by the state during a declaration of emergency in FY 2009-2010 to $3.5 million.

15.  Limits the allowable transfer of monies to the Tourism Fund to $10.6 million in FY 2009-2010.

16.  Requires nonlapsing, unexpended and unencumbered monies that remain at the close of FY 2009-2010 to be included in the state General Fund balance.

17.  Requires unrestricted federal monies received from July 1, 2009, through June 30, 2010, to be deposited in the state General Fund.

18.  Prohibits a state agency from conducting rulemaking that would result in increased monetary or regulatory costs on other state agencies, political subdivisions, businesses or individuals in FY 2009-2010.

19.  Allows a state agency to conduct rulemaking to avoid a violation of a court order or federal law that would result in sanctions to a state agency in FY 2009-2010 or to prevent an imminent threat to the public health or safety.

20.  Prohibits all state agencies, including universities and community colleges, from purchasing or renewing wireless communication devices and services during FY 2009-2010.

21.  Requires agencies receiving monies from the American Recovery and Reinvestment Act of 2009 to provide a report on the agency’s use of those monies to the Joint Legislative Budget Committee.

22.  Excludes classified civil service employees of a county furloughed to address budget shortfalls from the suspension or reduction in rank appeals process.

23.  Modifies the cap for Aviation Fund grants from ten percent of the fund balance to ten percent of the average revenues for the previous three years.

24.  Eliminates, for applicants for initial nursing assistant certification, state funding for federal criminal background checks.

25.  Allows the Secretary of State to publish the Landlord and Tenant Act online.

26.  Requires all new employees of the Secretary of State’s office to be classified as exempt from the state personnel system.

27.  States that the Legislature reserves the exclusive power, authority and jurisdiction to set forth statewide policy except where the Legislature has delegated authority to other agencies and utility rate setting to the extent delegated by the Arizona Constitution to other agencies, departments or political subdivisions of the state.

28.  Allows a state agency to require employees to work reduced hours in FY 2009-2010.

29.  Changes, for FY 2009-2010, the timing of mutual fund notice filing fee deposits to the state General Fund from continuously deposited to February 1, 2010, and June 30, 2010.

30.  Establishes the Tax Policy Advisory Committee (TPAC) consisting of the following members:

       a)  four members of the Senate, appointed by the President of the Senate;

       b)  four members of the House of Representatives, appointed by the Speaker of the House of Representatives;

       c)  one person who represents incorporated cities or towns, appointed by the President of the Senate;

       d)  one person who represents counties, appointed by the Speaker of the House of Representatives;

       e)  one person who represents school districts, appointed by the President of the Senate;

       f)  one person who represents a statewide taxpayer organization, appointed by the President of the Senate;

       g)  one person who represents the general public, appointed by the Speaker of the House of Representatives; and

       h)  two people who represent the business community, one appointed by the President of the Senate and one appointed by the Speaker of the House of Representatives.

31.  Stipulates that of the four members appointed by the President of the Senate and the Speaker of the House of Representative, no more than three may be from the same political party, and one must be the chairman of the House of Representatives Ways and Means Committee and one must be the chairman of the Senate Finance Committee.

32.  Requires the TPAC to study and make recommendations on state fiscal policy, including specific consideration of expansion of state resources and economic development strategies.

33.  Requires the TPAC to report its findings and recommendations to the President of the Senate, the Speaker of the House of Representatives and the Governor by September 15, 2010.

34.  Establishes the Arizona Budget Policy Advisory Committee (BPAC) consisting of the following members:

       a)  four members of the Senate, appointed by the President of the Senate;

       b)  four members of the House of Representatives, appointed by the Speaker of the House of Representatives;

       c)  one person who represents school districts, appointed by the President of the Senate;

       d)  one person who represents community colleges, appointed by the Speaker of the House of Representatives;

       e)  one person who represents a major state agency, appointed by the President of the Senate;

       f)  one person who represents a statewide taxpayer organization, appointed by the President of the Senate;

       g)  one person who represents the general public, appointed by the Speaker of the House of Representatives; and

       h)  two people who represent the business community, one appointed by the President of the Senate and one appointed by the Speaker of the House of Representatives.

35.  Stipulates that of the four members appointed by the President of the Senate and the Speaker of the House of Representative, no more than three may be from the same political party, and one must be the chairman of the House of Representatives Appropriations Committee and one must be the chairman of the Senate Appropriations Committee.

36.  Requires the BPAC to study and make recommendations on the expenditure policies of Arizona, including specific consideration to integrating services and eliminating duplicative programs.

37.  Requires the BPAC to report its findings and recommendations to the President of the Senate, the Speaker of the House of Representatives and the Governor by September 15, 2010.

38.  Makes technical and conforming changes.

39.  Becomes effective on the general effective date.

 

First sponsor: Sen. Pearce

 

Current Action:  4/23 Referred to Senate Appropriations Committee; 5/20 Senate Appropriations Committee amended; 5/26 from Senate Appropriations Committee with amendment #4308; 6/3 Senate Caucus; 6/4 Senate COW & Third Reading; 6/4 from Senate Rules Committee with a technical amendment; Senate COW approved with amendment #4308 and floor amendment #4346; a substitute for the rules tech amendment; Short Title Change; Ready for House; 6/4 Substituted in House for identical HB2636 and passed; ready for governor; 7/1 Vetoed.

 

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HB 2633         BUDGET; GENERAL APPROPRIATIONS; FY09-10

 

HB 2633 makes state General Fund (GF) and other fund (OF) appropriations for FY 2009-10 for the operatio