Bill Text: AZ HB2707 | 2011 | Fiftieth Legislature 1st Regular | Engrossed
Bill Title: General fund revenue limit
Spectrum: Partisan Bill (Republican 42-0)
Status: (Vetoed) 2011-04-28 - Governor Vetoed [HB2707 Detail]
Download: Arizona-2011-HB2707-Engrossed.html
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Senate Engrossed House Bill |
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State of Arizona House of Representatives Fiftieth Legislature First Regular Session 2011
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HOUSE BILL 2707 |
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AN ACT
Amending title 35, chapter 1, Arizona Revised Statutes, by adding article 2.2; relating to state revenue and expenditure limits.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 35, chapter 1, Arizona Revised Statutes, is amended by adding article 2.2, to read:
ARTICLE 2.2. STATE REVENUE AND EXPENDITURE LIMITS
35-132. Definition of state general fund revenues
In this article, unless the context otherwise requires, "state general fund revenues":
1. Includes all monies, revenues, fees, fines, penalties, funds, property and receipts deposited in the state general fund, after distributions to the urban revenue sharing fund established by section 43‑206, except as provided in this section.
2. Does not include:
(a) Any amounts or property received from the issuance or incurrence of bonds or other lawful long-term obligations issued or incurred for a specific purpose. For the purposes of this subsection, long-term obligations do not include warrants issued in the ordinary course of operation or registered for payment by this state.
(b) Any amounts or property received by this state in the capacity of trustee, custodian or agent.
(c) Any amounts received as grants, aid, contributions or gifts, except voluntary contributions or other contributions received directly or indirectly in lieu of taxes.
(d) Any amounts received as the proceeds from the sale, lease or redemption of property or as consideration for services or the use of property.
(e) Any amounts received pursuant to a transfer during a fiscal year from a dedicated fund to the state general fund that were included as general fund revenues for that fiscal year or that are excluded from state general fund revenues under other provisions of this paragraph.
(f) Any amounts received during a fiscal year as refunds, reimbursements or other recoveries of amounts appropriated that were applied against the limitation under this article for that fiscal year or that were excluded from state general fund revenues under other provisions of this paragraph.
35-132.01. Estimate of revenue limit
A. Before February 1 of each year, the joint legislative budget committee shall determine and publish:
1. The actual amount of state general fund revenues in the preceding fiscal year.
2. Preliminary estimates of the maximum amount of budgeted general fund revenues allowable under this article for the immediately following fiscal year.
B. Before April 1 of each year, the joint legislative budget committee shall determine and publish final estimates of the maximum amount of budgeted general fund revenues allowable under this article for the immediately following fiscal year. The final estimates shall be used in computing the general fund revenue limitation under this article for the following fiscal year.
35-132.02. Maximum annual general fund revenues
A. For fiscal year 2012-2013 and for each fiscal year thereafter, the maximum amount of budgeted general fund revenues for the fiscal year shall not exceed the maximum amount of budgeted general fund revenues under this article for the second preceding fiscal year, or the actual amount of state general fund revenues in the second preceding fiscal year, whichever is less, adjusted as determined by the joint legislative budget committee pursuant to this section.
B. For each fiscal year the joint legislative budget committee shall adjust the maximum amount of budgeted general fund revenues according to the sum of the positive or negative percentage changes for the most recent two years in:
1. The population of this state using only the most recent data from the United States decennial census or the revisions of population data by the department of administration or its successor.
2. Inflation according to the change in the metropolitan phoenix consumer price index published by the United States bureau of labor statistics.
35-132.03. Maximum annual general fund appropriations; disposition of excess general fund revenues
A. For fiscal year 2012-2013 and for each fiscal year thereafter, the legislature shall not appropriate general fund revenues in an amount exceeding the maximum budgeted general fund revenues as determined pursuant to section 35-132.02, except as provided by this section.
B. If general fund revenues in any fiscal year exceed the maximum amount of budgeted general fund revenues as determined pursuant to section 35-132.02, the legislature shall provide for the disposition of the excess amount in the following order of priority:
1. In the case of a catastrophic natural disaster, payments of the emergency costs incurred by this state. Monies appropriated pursuant to this paragraph:
(a) May be used only to pay current extraordinary nonrecurring expenses that could not have been reasonably foreseen or prevented and that are required immediately to preserve the health, safety and general welfare of the public.
(b) May not be used to pay the ordinary costs of administering, maintaining or operating state government or to meet revenue or budget shortfalls of state government.
2. Payments of:
(a) Certificates of participation and other instruments of indebtedness pursuant to lease-purchase and the sale and leaseback agreements relating to state capital assets, and revenue bonds whose proceeds were used to pay the ordinary costs of administering and operating state government.
(b) Any obligations for the restoration of general fund payments deferred from one fiscal year to another.
(c) Principal, interest and issuance, redemption and administrative costs, paid with state general fund monies, of obligations of this state or of any department, office, agency, commission, board or other instrumentality of state government, including instruments commonly known as certificates of participation, general OBLIGATION bonds, revenue bonds and long‑term notes and obligations not included in subdivision (a) of this paragraph.
3. Payments to the budget stabilization fund established by section 35-144.
4. Payments as a refund to persons who filed individual income tax returns in the fiscal year. The refunds must be paid within four months after the end of the fiscal year. The legislature may limit refunds under this paragraph to amounts of ten dollars or more.
C. In order to permit the assumption and devolution of governmental functions and responsibilities among the various levels of government, and consistent with the purposes of this section, the legislature shall provide for adjusting the limitation on state appropriations under subsection a of this section consistent with the following principles:
1. If the responsibility for funding all or part of the cost of a governmental function or program is transferred from this state to the federal government, a tribal government or a local level of government, the limitation on state appropriations under this section shall be commensurately reduced.
2. If the responsibility for funding all or part of the cost of a governmental function or program is transferred to this state from the federal government, a tribal government or a local level of government, the limitation on state appropriations under this section shall be commensurately increased.
3. Any adjustment pursuant to this subsection shall be made for the first fiscal year of the transfer and shall remain in effect until a subsequent adjustment.
4. Each act providing for the devolution from or assumption by this state of the responsibility for funding all or part of the cost of a governmental function or program shall include a separate provision describing the requirements of this subsection and providing for the increase or decrease in the limitation on state appropriations under this section.
D. If the legislature provides for the transfer or diversion of revenues, which would otherwise have been credited to the state general fund, to another state fund, the limitation on state appropriations under this section shall be commensurately reduced. An adjustment pursuant to this subsection shall be made in the first fiscal year of the transfer or diversion and shall remain in effect as long as the transfer or diversion continues.
Sec. 2. Short title
This act may be referred to as the "Fiscal Accountability Act".
