Summary of appropriations and legislation of the... Legislative Summary - House of Representatives

              7 ARIZONA

I HOUSE OF REPRESENTATIVES

I 36TH LEGISLATURE FIRST REGULAR SESSION

I 1983

I

I FRANK KELLEY

SPEAKER I 0 F

THE HOUSE

May 10, 1983

Dear Fellow Member:

I am pleased to transmit the enclosed report " Summary of

Appropriations and Legislation of the Thirty- sixth Arizona

Legislature First Regular Session - 1983".

This report contains a summary of all funds appropriated

by the Legislature during the last session and the legislation

passed and signed into law.

I hope you find the report both informative and useful.

Sincerely,

Speaker i

SUMMARY OF APPROPRIATIONS AND LEGISLATION

OF THE THIRTY- SIXTH LEGISLATURE

FIRST REGULAR SESSION

PREPARED BY

HOUSE RESEARCH STAFF

Rick Col1 ins - - Research Director

Research AnalystslResearch Economists

Pat Chumbley

Craig Cormier

Kitty Decker

Joyce Earl

Sheila Glenn

Ned King

Robert C. Lockwood

Jane McVay

Norman Moore

Marie Romano

John Thomas

Steven Betts

Bradley Carlyon

David Frank

Claudia Hi ggi ns

Kenneth Kirilenko

Barbara Lamb

Robert Langford

Kevin LeWi nter

Legislative Interns

Debi Horning

Grace Cartagena

Betsy Huff

Barbara Farnsworth

Carrie McCartan

Russ McElyea

Elizabeth Ann Merritt

Lisa Powel 1

Steve Sumsion

Susan Wall

Catherine Zirkel

Librarian

Assistant to the Librarian

Research Off ice Supervisor

Intern Secretary

-

Summary Coordinated By

Sheila Glenn

Assistant to Majority Whip

TABLE OF CONTENTS

I Letter of Transmittal ........................................... ( i 1

SECTION I. SUMMARY ANALYSIS OF APPROPRIATIONS FOR FISCAL

YEAR 1983- 1984 .................................

I 1

Statistical Summary of General Fund Appropriations.. . . . . . . . 4

Statistical Summary of General Fund Appropriations

for Education .................................... 6

I Statistical Summary of Appropriations, FY 1983- 84 .......... 8

Supplemental Appropriations for FY 1983- 84 which are not

included in the Statistical Summary of

I Appropriations ............................ s...... 13

Comparison of General Fund Appropriations, FY 1981- 82,

1982- 83 ( Revised) , and 1983- 84. . . . . . . . . . . . . . . . . . . 15

I SECTION 11. LEGISLATIVE ACTIVITY, FIRST REGULAR SESSION,

THIRTY- SIXTH ARIZONA LEGISLATURE ............... 16

Comparison Bill Introductions .............................. 17 I Bi 11 Introductions and Success Percentage.. . . . . . . . . . . . . . . . . 18

House Standing Committees Legislation

Agriculture ...................................... 19

I Appropriations ................................... 2 5

Banking & Insurance .............................. 3 3

Commerce ......................................... 4 3

I Counties & Municipalities ........................ 5 4

Education ........................................ 64

Government Operations ............................ 8 3

Health & Aging ................................... 94 I Human Resources .................................. 108

Judiciary ........................................ 116

Natural Resources & Energy ....................... 125

I Public Institutions .............................. 131

Tourism, Professions & Occupations ............... 135

Transportation ................................... 142

I Ways & Means ..................................... 156

SECTION 111. VETOED BILLS.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171

I SECTION IV. INDEX/ CROSS REFERENCE ............................ 175

I

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1 SECTION I. SUMMARY ANALYSIS OF APPROPRIATIONS FOR FISCAL YEAR 1983- 84

Page

Table 1. State of Arizona Summary Chart of

General Fund Appropriations :

FY 1983- 84 Operating Budget. . . . . . . . . . 4

Chart 1. State of Arizona Summary Chart of

General Fund Appropriations ;

FY 1983- 84 Operating Budget

($ 1,771,598,976) . . . . . . . . . . . . . . . 5

Table 2. State of Arizona Summary Chart of

General Fund Appropriations f o r

I Education Purposes : FY 1983- 84

Operating Budget . . . . . . . . . . . . . . . 6

Chart 2. State of Arizona Summary Chart of

General Fund Appropriations f o r

Education Purposes : FY 1983- 84

Operating Budget ($ 1,201,625,850). . . . . . . 7

I Table 3. State of Arizona S t a t i s t i c a l Summary

of Appropriations: Fiscal Year 1983- 84. . . . 8

TABLE 1

State of Arizona Summary Chart of General Fund Appropriations:

FY 1983- 84 Operatfng Budget

1 Percent: Total

I 1

Administration and Revenue Collection I

Agriculture

Civil and Criminal Justice

Corrections

Education*

Environmental

Heal th

Human Resources Devel opment

Recreation

Regulation and Licensing

Transportation

Compensation

* Does not include $ 19,697,200 in state aid and $ 95,700,000 in teachers'

retirement which were appropriated to the Department of Administration;

for the purpose of this table which details where the funds were actually

I

appropriated rather than the purpose of the appropriation, the funds are

included i n the function titled Administration and Revenue Collection.

See Table 2 for use of appropriations for Education.

TOTAL $ 1,771,598,976 100.0% - I

S t a t e of Arizona Sumary Chart of General Fund Appropriations:

FY 1983- 84 Operating Budget ($ 1,771,598,976)

I r Recreation, $ 7,040,400, 0.4%

/ r- Regulation and Licensing, $ 1 1,725,000, 0.7%

r- Civil and Criminal J u s t i c e , $ 64,999,500, 3.7%

TABLE 2

State of Arizona Summary Chart of General Fund Appropriations

for Education Purposes: FY 1983- 84 Operating Budget

State Aid to Pub1 ic Schools

Community Col 1 ege Board

Deaf and Blind School

Education Department

Northern Arizona University

Board of Regents

University of Arizona

College of Medicine

University Hospital

Board of Medical Student Loans

Teachers' Retirement 95,700,000**

TOTAL $ 1,201,625,850 100.0% 67.8% 1

* Includes $ 19,697,200 appropriated to the Department of Administration

for state aid to schools I

** Appropriated to Department of Administration 1

CHART 2

B S t a t e of Arizona Summary Chart of General Fund Appropriations

for Education Purposes : FY 1983- 84 Operating Budget ($ 1,201,625,850)

Board of Regents, $ 1,846,600, 0.2%

, - Deaf and Blind School, $ 5,893,500, 0.5%

University of Arizona - Col lege o f Medicine, $ 21,428,000, 1.8%

Northern Arizona University, $ 36,837,400, 3.1%

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H. B. 2476

H. B. 2476 Capital Outlay

H. 8.2477 Capd t a l Outlay Other Fund and

General Fund General Fund Other Fund Federal Fund st ima teda

Function Agency Appropriation Appropriation Appropriation Appropriation Federal Funds

HEALTH Department of Health Services . . . . .- $-_- 69,9j5, j!! d- $ _ _ _ _ - $ - 7,237 : 600 $ - 2J7.500 $ 76,241,900

Az. Health Care Cost Containment Sys. . Q B_ - - - - - - - - -- -- - . .-

PioneersVome. . . . . . . . . . . . .- .__- -_ _ 2,0_ 45_, 1! Il!- - _ - _ - _ _ _ -- . _ - _-- .- _ . - - 8,0~- G -_

HUMAN RESOURCES Department of Economic Security . . . . - - - -$ - 1- 5 - 4 -, 4- 2 8,000 - -- - $ - - -- - -- - - -.- - - - b - - -- - -- - -- - - -$ - - - -- 4- 5 0,00- 0- - - - -$ 18- 7,312,600

DEVELOPMENT Indian A f f a i r s Comnission . . . . . . . - -- --- - --- 1 - 2 z&! Lo_- __ ---_. - -- __ __ -_ _-. --- _- - -- __ -- -

Council f o r the Deaf. . . . . . . . . . - - -. - 8! Lrn -- -_ _ _--- _- - - - - - - - - - . - -

Veterans' Service Comnission. . . . . . _ _-_-__ _?_% LOO - _ _ _ _-. _ _ _ 1- 5080--- 6- k_ _ -- ,- I-- - _. - 159,800

RECREATION Comnission on the Arts. . . . .

Col iseum & Exposition Board . .

Outdoor Recreation Coord. Corn.

Department of Racing. . . . . .

Parks Board . . . . . . . . . .

Arizona H i s t o r i c a l Society. . .

Prescott H i s t o r i c a l Society . .

H. B. 2476

H. B. 2476 Capital Outlay

H. B. 2477 Capital Outlay Other Fund and

General Fund General Fund Other Fund Federal Fund ES timateda

Function Agency Appropriation Appropriation Appropriation Appropriation Federal Funds

REGULATION Banking Department. . . . . . . . . .

AND Registrar o f Contractors. . . . . . .

LICENSING Corporation Comnission. . . . . . . .

I n d u s t r i a l Commission . . . . . . . .

Occupation Safety & Health Review Bd.

Insurance Department. . . . . . . . .

Liquor Licenses & Control Dept. . . .

O f f i c e on Manufactured Housing. . . .

Mine Inspector. . . . . . . . . . . .

Optometry Board . . . . . . . . . . .

Real Estate Department. . . . . . . .

Copper T a r i f f Board . . . . . . . . .

Accountancy Board . . . . . . . . . .

Barber Examiners Bogrd. . . . . . . .

Boxing Co~ mission . . . . . . . . . .

Chiropractic Board. . . . . . . . . .

Cosnletology Board . . . . . . . . . .

Dental Board. . . . . . . . . . . . .

Funeral Directors & Embalmers Bd. . .

Honeopathic Board . . . . . . . . . .

Medical Exanliners Board . . . . . . .

Medical & Osteopathic J o i n t Bd. . . .

Naturopathic Board. . . . . . . . . . Nursing Board . . . . . . . . . . . . Nursing Care I n s t . Adrlin. Board . . .

Opticians Board, Dispensing . . . . .

Osteopathic Examiners . . . . . . . .

Pharmacy Board. . . . . . . . . . . .

Physical Therapy Board. . . . . . . .

Podiatry Examiners. . . . . . . . . .

Private, Technical & Business Schools.

I

4

IV

H. B. 2476 I

H. B. 2476 Capital Outlay

H. B. 2477 Capita1 Outlay Other Fund and

General Fund General Fund Other Fund Federal Fund st ima teda

Func t i o 1 1 Agency Appropriation Appropriation Appropriation Appropriation Federal Funds

REGULATION Psychologists Examiners Board . . . . . $ $ $ 41,900

AND 153,900

- - - - ~--. . . - . $ $ .. Structural Pest Control Board . . . . .

LlCENSING - . . - .. - - ---- -- - -.- --- --- -- - ... -- - - - - - .~--. ---

Technical Registration Board. . . . . . 363,200 . . . - - . . .. - .- - - . . . -. . - - . _ .- - -. - - - - . . . . - - - -- ... -- - .- 52 - m -'.. - -. ' 1 continued Veterinary Board. . . . . . . . . . . . - ~ .. -~ - . ..

TRANSPORTATION

COMPENSATION

Department of Transportation. . . . . . $ 75,000 $ $ 114,811,800 $ 47,762,900 $ 136,421,700 - - - - - - -- - - -- - - - - - - . - . - - - - - - - - - - - - - - - - - - - -- -- - - - - - - - - . - - - - - - - - - -

Administration. . . . . . . . . . . . . $- - 182861,300-- - L , $ 2,578,500 $ $ .-_ -- ._ __ -_ - -- -- -_ -_ _ - - -- - - -- ._ _ - -. _-_ ._ _ __

Division of Finance

TOTALS

TOTAL GENERAL FUND $ 1,782,482- 376

- -- -

GRAND TOTAL [ GEHERAL AN0 OTHER FUNDS] @ t745,869,116

. - - - - . - - --

( a) E s t ~ ~ ~ ~ artee cso ntained i n State of Arizona, Executive Budget 1983- 1984

( b) lrlrludes H. B. 2\ 84 ($ 870,000) for entergency county aid for Greenlee County, and $ 19,697,200 for State Aid to Schools

( c) lncludes H. B. 2177 ($ 845,560) for Western Army Aviation Training Site; H. B. 2182 ($ 287,075) for Nuclear Emergency

Management Fund; S. B. 1131 ($ 530.591) for Kingman and Sunnyslope armories

( d) $ 76,300 shall be reverted if federal funds become available for staffing requirements of hazardous waste/ environmental

protection a c t i v i t i e s

( e) Funds were appropriated to Treasurer's Office

( f ) lncludes $ 864,100 for equalization aid i n accordance with Section 15- 1468, ARS, for Graham County Comnuni ty College D i s t r i c t

( g) lncludes H. B. 2308 ($ 2,113,300) and $ 1,000,000 allocated i n Laws 1982, Chapter 115, for repair of ASU stadium

( h) Other receipts and balance forward

( i) Funds shall be expended from the Radiation Regulatory License and Registration Fund prior to expenditure of General Fund monies

( j) lncludes H. B. 2164 ($ 415,000) for appropriation to Water Quality Assurance Revolving Fund

( k) When $ 8,000 i s accumulated i n the Veterans' Cemetery Fund it shall be appropriated and transferred to the General Fund

( 1) Estimated revenue, of which an amount not to exceed $ 812,700 shall be from state tax revenues

(~ n) Includes S. B. 1030 ($ 533,040) f o r h i r i n g attorneys

( n) Includes S. B. 1275 ($ 5,000) appropriated from the Arizona Board of Osteopathic Examiners i n Medicine and Surgery Fund

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S E C T I O N I1

LEGISLATIVE ACTIVITY

FIRST REGULAR SESSION

THIRTY - SIXTH ARIZONA LEGISLATURE

- TABL- E 6

COMPARISON BILL INTRODUCTIONS - HOUSE AND SENATE

Year

1983

1 982

1981

1980

1979

1978

1977

1976

1975

1974

Ten-

Year

Average

L -

-- HOUSE BILLS I SENATE BILLS

HBs HBs Percent SBs SBs Percent

- I n- t r o . Member o f Total

477 8.0 55%

523 8.7 57

496 8.3 55

463 7.7 57

458 7.6 5 7

430 7.2 50

369 6.2 48

439 7.3 47

425 7.1 5 2

350 5.8 5 2

I n t r o . Member o f Total

13.2 45%

13.2 4 3

13.7 45

11.8 43

11.4 4 3

14.3 50

13.2 52

16.3 53

13.2 48

10.7 48

TOTAL BILLS

Total B i l l s /

I n t r o .

5' OE 50Z - 0- Z 5

L'OZ 06 L - 0- 1 - 0-

O'OZ 58 L 1 E - 0-

8- 22 CL i - 0- * S - 0-

0' 52 5 12 - 0- S 2

9' LZ I zz - 0- 1 Z 9

0' LE ESZ L S 1 6

C'SE LZE - 0- S 1 2

8' 9E 8E E - 0- 8 E

%[' LC 6ZE - 0- 8 Z

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L t l ZS L OlP 186 1

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I A G R I C U L T U R E

I - B i l l Chapter Short T i t l e Page

Mosquito control; pest abatement d i s t r i c t s 20

Board of pesticide control 2 1

Agriculture and horticulture; supplemental

appropriation 2 1

Agriculture employment relations board

appropr i a t i on 2 2

Citrus f r u i t rev01 ving fund; charges 22

Horse trader permit 22

Livestock service charges; waiver 23

Feed l o t s and dairies; self- inspection

fees 23

Animals with drug residue; i d e n t i f i c a t i o n 23

Aflatoxin standards 23

H. B. 2258 - Chapter 276 ( Mosquito control; pest abatement districts)

H. B. 2258 provides for the formation of pest abatement districts for the

purpose of checking for and pre. venting the spread of mosquitoes or pests.

Pests are defined as any arthropods, rats and mice determined by the

district as a public nuisance to persons or property, excluding arthropods

which primarily attack agricultural crops.

A group of fifteen or more landowner;, or any number of persons who col-lectively

own a t least 75% of the acreage of the prop~ sed district, may

petition the County Board of Supervisors for the establishment of a pest

abatement district. The petition must include: the kind of pest to be

eradicated; the boundaries of the proposed' di stri st; name, address and

signature of each signer and a description of the acreage owned by him;

and a 1 ist of the proposed district directors. The Board sf Supervisors

must schedule a hearing and handle i t i n the same manner as other public

hearings. The Board must also request certification from the State

Entomologist or a county health officer t o verify that the described pest

is a threat to the district. Testimony will be heard a t the hearing and

if any owner of agricultural land presents evidence sf an ongoing pest

control program his property shall be excluded.

After the hearing ballots are t o be sent to all of the landowners i n the

proposed district. The Board will tal ly the votes and establ ish the

district if 66 2/ 3% of the votes are in favor of the district and

landowners voting own a t least 50% of the land in the distrjct. Five

directors for the district will also be elected a t that time. Monies from

the district will cover the cost of the election, unless the initiative

fails, then the costs incurred will be charged against the signers of the

petition.

A landowner may ask a district to include his property in the district

after the district has been formed. If the Board believes inclusion will

benefit both the owner and the district i t can order the inclusion.

Directors. are elected for 2 year terms. Vacancies result if a director

sells the land he owns in the district, and are filled by appointments

by the Board. Directors must file an oath with the Clerk of the Board in

the same manner as all county officials.

Powers and duties of the directors include: meeting annually or as often

as necessary; preparing an annual report and a budget; maintaining a file

of signed consent forms from landowners giving the district permission

t~ enter property as provided for in statute; contracting for the perfor-mance

of district functions ; employing personnel ; purchasing equipment

and services ; sell ing or leasing lands and property; annual 1y assessing

land i n the district; and contracting w i t h agencies and' other departments

of the state, county and nation. The directors cannot use district monies

for the purchase of real property without written consent of the Board.

Powers of the d i s t r i c t include; entering any property within, or adjacent

to, the d i s t r i c t with p r i o r written consent to inspect insect breeding

sites ; conducting control measures ; entering into agreements with landowners

1 within or adjacent to the d i s t r i c t ; levying an assessment, not to exceed 256 on each $ 100 of assessed value on a l l taxable property; and the power

to sue and be sued. 1 A county tax collector w i l l collect the assessment i n the same manner and

a t the same time as other county taxes. Collected monies w i l l be paid

1 into the county treasury and can be withdrawn by warrant o f the d i s t r i c t .

D i s t r i c t property and equipment are exempt from state and county taxes.

If the d i s t r i c t intends on s e l l ing any real property it must give the f i r s t

I r i g h t o f refusal to the person from whom the d i s t r i c t acquired the property.

The d i s t r i c t does not have the power of eminent domain.

D i s t r i c t s may be dissolved by an order of the Board of Directors or by

I the 1a ndowners through the petition, hearing and election process. Monies remaining i n the d i s t r i c t fund a f t e r dissolution, satisfaction of obligations,

and sale of property w i l l be credited to landowners i n proportion to t h e i r

assessment.

An emergency clause has been enacted.

I

H. B. 2295 - Chapter 207 ( Board of pesticide control)

H. B. 2295 provides the Board of Pesticide Control with the authority to

revoke, suspend, refuse to issue or refuse to renew advisor licenses,

appl icator 1 icenses and agricul t u r a l a i r c r a f t p i 1 o t 1 icenses. The Board

may also place those individuals on probation or impose c i v i l penalties.

C i v i l penalties are not to exceed $ 100 for the f i r s t v i o l a t i o n o r $ 500

for a second incident involving the same violation. A l l monies collected

from penalties w i l l be deposited i n the General Fund.

This law also requires applicator reports to be turned i n on a weekly

basis. Reports are to be completed each week and postmarked by the Monday

following the application.

I To allow for a quorum of the 15 member board a t hearings the required

number of members present has been increased from 4 to 8 members.

I H. B. 2341 - Chapter 160 ( Agriculture and horticulture; supplemental

appropriation)

H. B. 2341 authorizes an additional appropriation of $ 25,500 to the

Agriculture and Horticul ture Commission. The money i s to be transferred

from the F r u i t and Vegetable Revolving Fund and used t o f u l fi 11 a

cooperative agreement between Arizona and Mexico' f o r watermel on inspections .

The money i s needed i n order to pay the United States Department of

Agriculture which i s contracted to perform the inspections.

H. B. 2362 - Chapter 161 ( Agriculture empl oyment relations board

appropriation)

I

H. B. 2362 authorizes an additional appropriation of $ 20, Q00 to the

Agricultural Employment Relations Board. The money is to be transferred

I

from the State General Fund in order to appeal a legal decision against

the Board, In United Farm Workers of America, AF of L- CIO, et al. v.

Agricultural Employment Re1 ations 00- ard, et a1. ( 9th ci r; 80- 57771, the

9th Circuit Court found the Board to have a built- in bias in its member

I

composition which the court claimed as unconstitutional because it does

not allow for due process of the law. Any funds not used by June 30, 1984,

to appeal this decision will go back into the General Fund.

I

An emergency clause has been enacted. I

H. B. 2387 - Chapter 103 ( Citrus fruit revolving fund; charges)

H. B. 2387 establishes maximum charges on cartons of citrus fruit, a new

ceiling for the Citrus Fruit Revolving Fund and a new date for Fund

accountability. Charges on bulk shipments of citrus to places outside

of Arizona are not to exceed $ 1.50 per lot or 1 oad. This money is put

into the revolving fund; the ceiling limit has been increased from

I

$ 10,000 to $ 50,000. The year- end date for accounting and reporting

purposes has been changed from August 1 to June 30. This change of dates

was also made for the Fruit and Vegetable Revolving Fund. I

S. B. 1009 - Chapter 166 ( Horse trader permit)

S. B. 1009 establishes requirements for obtaining, renewal, denial,

suspension and revocation o f horse trader permits. An applicant can

purchase a permit val id for one year by paying a fee of $ 100 and fi 1 ing

an application containing the applicant's full name plus any aliases,

business and residence addresses, date and place of birth, information

l

concerning horse trading permits from other states, information concerning

any felony convictions within seven years, including any convictions set

aside or resulting in restoration of civil rights, and any other information I

the Board may require. The permit can be renewed for $ 10.00 and by fil ing

another application containing the above information. I

The Board may deny, refuse to renew, suspend or revoke a permit for any

of the following reasons: violation of this title and any of its rules,

violation of any provision of consumer fraud, just revocation or suspension

of a horse trader permit from Arizona or any other state within five years,

I

or conviction of a felony for a horse trading related crime within seven

years. A decision of the Board is subject to judicial review and its

actions are subject to hearings for the effected party.

B

S. B. 1010 - Chapter 12 ( Livestock service charqes; waiver) ! S. B. 1010 provides the Livestock Board with the authority to waive 1 ivestock

service charges in cases it deems advisable. This authority is included

I with other powers of waiver under the genera1 powers and duties of the Board.

S. B. 1011 - Chapter 78 ( Feed lots and dairies; self- inspection fees)

P S. B. 101 1 provides for sel f- inspection agreements between the Livestock

Board and operators of feedlots and dairies. Livestock being moved from

feed lots and dairies because of a change in ownership can be self-inspected

if done according to the Board' s inspection requirements. Board

I appointed 1 ivestock inspectors may conduct periodic inspections to ascertain compl iance.

1 An inspection fee of 20 cents per head is imposed on self- inspections, rather than 25 cents per head as charged by livestock inspectors. Persons

conducting self- inspections do not have the same enforcement powers as I 1 ivestock inspectors.

I S. B. 1221 - Chapter 117 ( Animals with drug residue; identification)

I S. B. 1221 prescribes identification requirements and marketing procedures

for animals treated with antibiotics that have a specific withdrawal period.

Specific withdrawal periods result because residues remain in the tissues

of a treated animal creating health hazards if the animal is slaughtered

and consumed before the period is up. In order to market a treated animal

the period must have expired, or the animal must be identified as treated

and treatment restrictions disclosed to potential buyers. A producer

under restriction by the United States Department of Agriculture for residue

violations must disclose that information and identify the animals he markets.

To help clear his record such a producer can certify that an animal has

undergone the specific withdrawal period. In all cases, identification

must accompany an animal for 30 days or until it is slaughtered.

I Violation of this article is a class 2 misdemeanor.

I S. B. 1236 - Chapter 200 ( Aflatoxin standards)

1 S. B. 1236 increases the feeding levels of aflatoxin contaminated cotton-seed

and cottonseed meal from 100 parts per billion ( ppb) to 300 ppb for

non- lactating animals. Those selling cottonseed and cottonseed meal

contaminated in excess of these limits are guilty o f a class 2 misdemeanor

and liable for penalties.

I

Penalties will be assessed as twice the selling price of the purchased

feed, whether or not payment has actually been made, and are payable t o

the purchaser within 30 days. If the purchaser cannot be found the amount

, of the penalty will be paid i n t o the Commercial Feed Fund. The purchaser

I

is entitled to a refund upon return of any unused portion of a delivery

and can cancel an order for undel ivered feed without penalty or damages, I

The state chemist can declare feed contaminated in excess of the set limits

as adulterated based on the purchaser's sample if the sample was taken

in accordance w i t h the method described in statute. The decision of

the state chemist is final, but may be appealed as provided in statute.

APPROPS - 25-

A P P R O P R I A T I O N S

I B i l l Chapter Short T i t l e Page

201 0 88 + I. rr. 1 . .

I 7Now: Medical

examiners board; supplemental

appropriation 26

I 2020 5 Reversion o f appropriated monies 26

21 25 322 Revolving fund; amount 26

21 63 9 5 Outdoor recreation coordination

commission ; appropriation 26 I 21 65 142

ewwes Now: I n d u s t r i a l commission;

special fund loans 2 6

I 21 82 20 Appropriation; nuclear emergency

management fund 2 7

21 84 13 Appropriation; county financial emergency 2 8

I 2233 15 Department of state; supplemental

appropriation 28

2 308 30 7

Now: Appropriation; engineering center I of excel 1 ence 28

2474 285 Appropriation for c e r t a i n named claimants 29

2475 164 Appropriation; reapportionment attorney

I fees 2 9

2476 302 State capital outlay appropriations 29

2477 303 General appropriations 3 0

I 1074 193 Legislative appropriation; federal fund

monies 30

1085 11 Monies separate from general fund 30

1131 7 Reversion of funds; appropriations 31 I 11 33 6 Allocation of highway fund monies 3 1

1394 294 Dam on Show Low creek 3 1

I

I

I

I

I

I

- 26- APPROPS

I

This bill provides for a supplemental appropriation in 1982- 83 of

$ 32,700 from the State Medical Examiners Board Fund to defray unantici-

I

pated personal services expenses. I

H. B. 2020 - Chapter 5 ( Reversion of appropriated monies)

H. B. 2020 repeals Laws 1982, Chapter 284, the general appropriation bi 11. I

This bill provides for the re- appropriation of certain general fund monies

appropriated to state agencies. These re- appropriations were a part of

the proposal to balance the 1982- 1983 budget.

I

This bi 11 is retroactive to July 1 , 1982, and carries an emergency clause. I

- H. B. 21 25 - Chapter 322 ( Rev01 ving fund ; amount) I -

H. B. 2125 raises the ceiling for revolving fund amounts from $ 20,000 to

S50, OOO. This bill is retroactive to July 1, 1983. I

H. B. 2163 - Chapter 95 ( Outdoor recreation coordinating commission;

appropriation

This bill provides for a supplemental appropriation in 1982- 83 of

$ 10,700 from the Law Enforcement and Boating Safety Fund to the Arizona

Outdoor Recreation Coordinating Comission for 1 aw enforcement and

I

boating safety projectj. I

I

H. B. 2165 allows the Director of the Industrial Commission to provide

1 oans from the Industrial Commission Special Fund, subject to repayment, I

budgetary review and legislative appropriation, to the Industrial

Commission Administrative Fund for the purposes and subject to the

provisions of Section 23- 1081 , ARS ( administrative fund: purposes and

administration).

I

This bill contains an emergency clause. I

APRROPS - 27-

I H. B. 2182 - Chapter 20 ( Appropriation; nuclear emergency management fund)

H. B. 2182 amends Section 26- 306.01, ARS, as follows:

1. A 10% per annum interest shall be charged on the annual

assessments. The interest shall be charged on any amounts

appropriated pursuant to subsection C of Section 26- 306.01,

ARS, that have not been repaid, from the date the appropriation

becomes available for expenditure, until payment is received.

I 2. Repayment of the assessment must be within one year from the

date the assessment is made.

I Section 2 of this bill appropriates $ 521,456 and $ 287,075 in the

fiscal years 1982- 1983 and 1983- 1984 respectively, from the State General

Fund to the Nuclear Regulatory Fund for the following agencies for the I fol 1 owing purposes :

1. For use by the Division of Emergency Services, Department of

I Emergency Services, Department of Emergency and Military

Affairs as provided in Section 26- 306.02, ARS:

I 2. For use by the Radiation Regulatory Agency for programs relating

to off- site nuclear emergency response plans:

3. For use by the Divi sion of Emergency Services, Department of I Emergency and Military Affairs to departments and agencies of

Maricopa County assigned responsibilities under off- site

nuclear emergency response plans:

I This bill provides for the assessment of $ 708,531 against each consortium

constructing a commercial nuclear generating station in this state

I plus interest at 10% per annum as described in subsection D of

Section 26- 306 .01, ARS.

An emergency clause is contained in this bill and the appropriation is I exempted from Section 35- 190, ARS, relating to lapsing of appropriations.

I

I

- 28- APPROPS

H. B. 2184 - Chapter 13 ( Appropriation; county financial emergency) I

H. B. 2184 appropriates $ 870,000 from the state general fund for the f i s c a l I

year 1983- 1984 to the Department o f Administration f o r disbursement to

Green1 ee County f o r the purpose of providing temporary financial assistance

to a1 leviate eme~ gency financial conditions. I

The monies shall be repaid beginning March 1, 1984. The state treasurer

shall withhold from the monies to be distributed to Greenlee County pursuant

t o Section 42- 1342, Arizona Revised Statutes, any amount of monies i n excess

I

of $ 120,000, but not to exceed a payment o f $ 25,000 i n any one month f o r

repayment of 1 oan . I

There i s a 10% per annum interest on the loan: A1 1 payments by the county

shall be applied f i r s t to any interest due at the time of each payment

and the balance applied to the principal. I

Accelerated payment i s allowed and w i l l be applied against the remaining

bal ance.

This measure carries an emergency c l ause. I

H. B. 2233 - Chapter 15 ( Department of state; supplemental appropriation) I

H. B. 2233 i s a supplemental appropriation of $ 268,449 from the state general

fund to the Department o f State for the purchase of Arizona Revised Statutes

and pocket parts and for additional election- re1 ated expenses. I

H. B. 2308 appropriates $ 2,11' 3,300 from the state general fund for fiscal

year 1983- 84 to Arizona State University for persona1 services and other

operating expenses f o r no more than 29 positions i n the EngSneering Center

of Excellence. This appropriation w i l l not be included as part of the

University's operating budget base.

I

This b i l l requires Arizona State University to submit quarterly to the

Joint Legi sl ative Budget Committee a detai led expenditure of the monies

I

appropriated by t h i s act and the progress made i n developing the Engineering

Center of Excellence. I

The appropriation made i n H. B. 2308 i s exempt from Section 35- 190, ARS,

relating to lapsing of appropriations. I

APPROPS - 29-

I H. B. 2474 - Chapter 285 - ( Appropriation for certain named claimants)

I H. B. 2474 appropriates $ 595,661.22 from the s t a t e general fund and $ 9,907.33

from funds other than the state general fund for payment of claims against

the state. This i s an annual measure arising from: 1) failure of persons

I to submit claims or warrants against the state within the allotted time

period; or 2) court judgments against the s t a t e requiring payment.

I This b i l l contains an emergency clause.

H. B. 2475 - Chapter 164 ( Appropriation; reapportionment attorney fees)

I H. B. 2475 appropriates $ 245,534.69 from the State General Fund to the

Secretary of State for payment of certain attorney fees, supplemental

fees and costs awarded in the action Samuel P. Goddard, Art Hamilton, and

I Jones Osborn, Plaintiffs vs. Bruce Babbitt, Governor of Arizona and Rose

Mofford, Secretary of State of Arizona, Defendants ( CIV 81 1497). -

I This bill contains an emergency clause.

I H. B. 2476 - Chapter 302 ( State capital outlay appropriations)

I H. B. 2476 makes appropriations for land, buildings and improvements for

different departments and institutions of the state. The total appropri -

ation i s $ 58,770,400 w i t h $ 1,905,700 from the capital outlay stabilization

I account, $ 7,770,700 from the state general fund and $ 48,642,000 from other

funds .

Appropriated in this bill i s $ 452,000 ih federal fund monies to the Depart-

I ment of Economic Security in fiscal year 1982- 83. These funds are for administering i t s employment security programs a t the P. hoenix Southside Mu1 t i -

servi ce Center. I This bill carries an emergency clause and the appropriations are exempted

from 1 apsing of appropriations, unless, the purpose for the appropriation

I i s accomplished or abandoned, or no expenditure or encumbrance has been

made by July 1, 1985.

I

- 30- APPROPS

H. B. 2477 - Chapter 303 ( General appropriations)

H. B. 2477 i s the general appropriations b i l l which funds the various

agencies, departments and i n s t i t u t i o n s of the State of Arizona. Appro-priated

from the state genera1 fund was $! ,771,413,350 and $ 254,391,900

I

was appropriated from other funds. I -

Included i n the appropriations from H. B. 2477 was a 5% cost sf 1 iving

adjustment f o r state employees effective January I, 1984, and expendi ture

adjustments f o r increased group insurance benefits. I

S. B. 1074 - Chapter 193 ( Legislative appropriation; federal fund monies) I

S. B. 1074 requires budgetary units receiving block grants t s supply

estimates of amounts, pattern o f expenditure and additional informati on,

if requested, related to block grants i n t h e i r annual budget report. I

This b i l l requires the legislature to annually appropriate a l l block

grants to be received. Such amounts shall be appropriated to specific

programs within a budget unit. If the amounts anticipated to be received

I

pursuant to a block grant vary from the level reflected i n the appropria-t

i o n the head o f a budget u n i t may adjust the appropriated amounts to

r e f l e c t the variance, i f approved by the Joint Legislative Budget Comnittee.

I

The Division o f Finance i s required by the provisions of t h i s act to account

for block grants i n separate accounts or funds to meet accounting, budgetary

I

and auditing requirements. The b i l l defines f o r usage i n t h i s act the

terms: block grant, budget u n i t and program. I

S. B. 1074 carries a conditional enactment and shall not become effective

unless the Constitution o f Arizona i s amended by vote of the people at

the next general election, or at the next special election, that authorizes

the 1 egis1 ature to approve expenditures of and appropriate federal fund

I

monies i n a manner provided by law. I

S. B. 1085 - Chapter 11 ( Monies separate from qeneral fund) I

S. B. 1085 authorizes the use o f i d l e monies i n funds separate from the

state general fund and the interest from these monies which accrues to

the general fund, to be used to f a c i l i t a t e cash management and to effectuate

prompt payment of claims. The amounts attributable to each separate fund

I

w i l l s t i l l be accounted f o r separately and properly allocated to each

fund. Claims against each of the funds w i l l be charged against monies

i n the fund for accounting purposes.

I

- .

This b i l l contains an emergency clause. I

APPROPS - 31-

S. B. 1131 - Chapter 7 ( Reversion of funds; appropriations)

S. B. 1131 provides for the reversion of $ 10,841,856.83 general fund monies

I appropriated as continuing appropriations prior to and including 1982- 1983;

for the reversion of $ 1,915,000 in Capital Outlay Stabilization Fund monies

appropriated as continuing appropriations to the Department of Admini stration

prior to and including 1982- 1983; arid for the reversion of $ 1,615,000 from

the Department of Transportation to the state highway fund. These monies

were appropriated primarily for land, building, and improvement projects.

I The bill a1 so provides for the reversion of $ 5,000,000 of the monies. remaining

unexpended and unencumbered in the Department of Transportation equipment

fund to the state highway fund.

I Another provision re- appropriates on July 1, 1983, monies reverted by this

act from the Department of Emerg~ ncy and Military Affairs for additions to

I the Kingman and Sunnyslope Armories. This appropriation is exempt from

Section 35- 190, ARS, relating to lapsing of appropriations.

This bill carries an emergency clause. I

I S. B. 1133 - Chapter 6 ( Allocation of highway fund monies)

S. B. 1133 allocates $ 8,000,000, in fiscal year 1982- 1983, to the Arizona

highway patrol fund from the state highway fund. This bill carries an

emergency clause.

I S. 8. 1394 - Chapter 294 ( Dam on Show Low Creek)

S. B. 1394 amends Laws 1982, Chapter 235, Section 1, relating to appropriation

I for dam on Show Low Creek by delaying the fiscal year 1983- 84 appropriation

of $ 4,187,000 until fiscal year 1984- 85. The bill also delays the beginning

date of repayment of monies to the state general fund from July 1, 1984 until

July 1, 1985. I T h i s b i l l a l s o m a k e s t h e f o l l o w i n g a p p r o p r i a t i o n s f r o m t h e s t a t e g e n e r a l f u n d :

I 1. $ 1,550., 000 in fiscal years 1984- 85 and 1985- 86 to the

Department of Water Resources for the state's contribution

to the cost of planning and constructing a flood control I project for the Canada del Oro wash in the vicinity of the

town of Oro Val ley. Before this appropriation can be

disbursed to the Pima County flood control district; the

I Department of Water Resources must have approved the project

- 32- APPROPS

plans and have entered into an intergovernmental agreement

with the Pima County flood control district for construction

of the project.

2. $ 750,000 in fiscal year 1984- 85 and $ 1,450,000 in fiscal year

1985- 86 to the Department of Water Resources for paying or

I

reimbursing the Navajo County flood control district for the

state ' s contribution to the- cost of construction of the

Little Colorado River flood control prodect at Winslow.

I

3. $ 600,000 in fiscal year 1984- 85 to the Department of Water

Resources for the purpose of paying or reimbursing the

flood control district o f Maricopa County for the state's

contribution to the cost sf diking around Holly Acres between

113th Avenue and 123rd Avenue.

4. $ 616,000 in fiscal year 1984- 85 to the flood control loan fund

to be expended pursuant to Title 45, Chapter 14, article 3,

Arizona Revised Statutes,

I

S. B. 1394 contains an emergency clause and the appropriations are exempt Prom

Section 35- 190, ARS, relating to lapsing of appropriations, except that any

I

monies remaining unexpended or unencumbered on June 30, 1986 revert to the

state general fund. I

B A N K I N G a I N S U R A N C E

Bill Chapter Short Title

Health care services ; annual report

Mortgage guaranty insurance company

+ r . 9

Now: Depository institutions; powers

granted

Insurance department; health care

jurisdiction

Mandatory motor vehicle insurance

Premium finance company; notice

Financial responsibil i ty ; technical

corrections

Unauthorized use of checks

Standard fire policy; repeal

Consumer loans; insurance

Prepaid legal services

Banks and financial institutions

Issuance of bonds; form

Mandatory vehicle insurance; exceptions

Insurers; investments; type; percentage

Savings and loan associations;

investments

n . nh

. L. 9 bil

Now: Insurance ; psycho1 ogi sts

and chiropractors; benefit denial

prohibited

Vehicle insurance rates; older persons

I , ,

J b

++ kkw+ NOW: Sel f- insurance;

state; workmen's compensation and

employees' liability insurance

Life care facilities

Control1 ing interest in bank

Page

H. B. 2065 - Chapter 40 ( Health care services; annual report)

Currently, health care service organizations ( HCS08s) are required to file

an annual report with the Director of the Department of Insurance. This

I

bill changes the filing date from March 1 to March 31, which is the date

for authorized domestic insurers to file their annual reports. I

H. B. 2076 - Chapter 215 ( Mortgage guaranty insurance company)

This bill allows a mortgage guaranty insurance company to underwrfte

insurance for mortgages originated by an affiliate company as long as tne

insurance is underwritten on the same basis and subject to the same

I

requirements for insurance provided to nonaffi 1 iated lenders. This

provides a standard of equal treatment for t z i n ~ bu siness. I

H. B. 2078 - Chapter 321 - . n-"- n,,, cts; p- ( NOW: Depository

institutions; powers qranted) I

This bill expands the general corporate and banking powers of state I

chartered banks to permit them to engage in any business activity authorized

for federal ly chartered financial institutions, except as prohibited by

law. In addition, the state chartered banks may invest in real estate

in the state, including corporations, partnerships, and joint ventures which

I

acquire, develop, improve, hold, lease, operate and sell real estate. These

investments must comply with other statutes and regulations established

by the Superintendent of Banks.

I

Also, this bill expands the investment power of state chartered savings

and loan associations. The poweFs, which are subject to percentage of

assets limitations, include: ~ ffering accounts for fixed, minimum or

I

indefinite periods; making, investing or acquiring loans which are secured

or unsecured; securing 1 oans sf any residential or nonresi denti a1 property

interest; issuing debt securities for cash and investing in real or personal

I

property.

The powers of state chartered financial institutions dealing with real

property loans are subject to regulations and the prohibition of enforcement

of due on sale clauses. This section states that the interest rate on

certain real property loans transferred or assumed between July 8, 1971

and October 15, 1982, and prior to October 15, 1987, shall not be increased

by more than one- half of one percent. Until October 95, 1987, the enforce-abi

1 i ty of a due on sale clause in those real property 1 oans is sub jeet

I

to existing statutory and judicial restrictions.

A bank, savings and loan association or credit union not exercising trust

powers may act as a trustee for individual retirement accounts if the duties

I

of the institution are essentially custodial or ministerial in nature,

and if the funds are ir,. d. ested only in its own time and savings deyosits I

or shares.

I H . B . 2087 - Chapter 222 ( Insurance department; health care jurisdiction)

I This bill provides that any person or entity that provides insurance

coverage for certain health care services is presumed to be subject

to the jurisdiction of the Department of Insurance unless the entity

I can show that it is subject to the jurisdiction of another agency of this

state, any political subdivision of this state, another state or the

federal government. The means of showing that an entity is under the

I jurisdiction of another agency are provided for in the bill.

Any person or entity that is unable to show it is subject to the juris-diction

of another agency of this state, any pol itical subdivision of I this state, another state or the federal government shall submit to an

examination by the Director and is subject to all applicable provisions

regarding the conduct of the business of insurance. I A production agency or administrator who advertises, sells or administers

coverage for a person or entity that is unable to show it is subject to

I the jurisdiction of another governmental body shall advise any prospective

customer or covered person if the coverage provided is not fully insured

by an admitted 1 ife or di sabi 1 i ty insurer.

1 H. B. 2119 - Chapter 272 ( Mandatory motor vehicle insurance)

-

H. B. 2119 makes changes in the current mandatory motor vehicle insurance

law. This article requires a motor vehicle, while operated on any highway

in this state, to be covered by a motor vehicle liability policy or other

proof of financial responsibility. Motor vehicles which are exempt from

financial responsibility requirements of this article are farm tractors,

I trailers and semitrailers not used for commercial vehicles, mopeds, golf carts, motor carriers, motor vehicles rented without drivers, special

thirty- day nonresident registrations and United States motor vehicles. I Every person operating a motor vehicle on any highway in this state is

required to possess evidence of current and val id financial responsi bi 1 i ty I within the motor vehicle, and present the evidence to a law enforcement

officer upon request. Failure to produce the evidence is a class 2

misdemeanor and a citation will be issued, However, the citation will be

I dismissed upon proof of financial responsibility to the court. The crime

for failure to possess evidence of financial responsibility will become

a civil traffic violation beginning January 1, 1984. Surrender of

I operators' licenses when cited for involvement in automobile accidents

is no longer required.

A person applying for registration of a motor vehTc1e must certify that

! the motor vehicle is in compl iance with financial responsibil ity require- ments, and identify on the application the insurance pol icy or the a1 ternate

method of coverage applicable to the rotor vehicle. The signed statements

do not have to be notarized.

The Motor Vehicle Oivision shall annually sample at ledst ten percent of

the vehicle registrations whose operators have been convicted of any moving I

traffic violation to determine compliance, and shall inquire of any insurer

or other person identified on the registration application if the information

is correct. If the response indicates that the vehicle is not in compliance,

the Motor Vehicle Division shall suspend the registration and number plate

I

of the vehicle. Any registered owner failing to respond to the Motor Vehicle

Division's demand for evidence of fin. ancia1 responsi bil ity may be prosecuted. !

Criminal violations under this legislation include: failure to possess evi-dence

of financial responsibility in the motor vehicle, fa1 se certification

and failure to provide correct information to the Motor Vehicle Division

I

within 10 days of a change. The violations are a11 class 2 misdemanors.

The penalties for these violations are: the first violation is a minimum

fine of $ 250 and a 3- month suspension of 1 icense , registration and number I

plate; the second violation is a minimum fine ~ f $ 500 and a 6- month suspension

of l icense, registration and number plate; the third or subsequent violation

is a minimum fine of $ 758, a 1- year suspenslsn cf I icense, registration and

number plate and a minimum one- day jail sentencs.

I

The Auditor General shall conduct a perforv : e audit of the program and

present the report to the Speaker of the House and the President of the

u

Senate no later than October 7, 1987. This article is repealed from and

after December 31, 1988. I

This bill contains an emergency clause. I

H. B. 2248 - Chapter 21 7 ( Premium finance company; notice)

Under this bill, an insurance agent or broker must list any managing

general agent to whom the insurance agent or broker has to pay insurance

premiums for a1 I pol icies 1 isted on a premium finance agreement.

If a managing general agent is l isted on such an agreement, a premium

finance company must notify the agent that the company has entered

into an agreement within thirty days. In addition, any third party

must be given notice within five days of receiving a notice of can-cel

1 ati on of an agreement from a premium finance company.

H. B. 2291 - Chapter 152 ( Financial responsi bil i ty ; technical corrections)

Thjs bill provides for c~ rrections and conforming changes related to proof

of f i nanci a1 responsi bi 1 i ty i It changes the reference of the Superintendent

to the Assistant Director for the Motor Vehicle Division. Certificates

of deposit or cask replace the deposit of money or securities language.

The proof of financial responsibility, evidenced by a certificate of

I

deposit, must be issued by a financial institution and deposited with

the State Treasurer. Before, the proof of financial responsi bil i ty was

deposited with the State Treasurer, but the actual certificate of deposit

was left in a financial institution. Other changes are to simplify and

I

condense phrases contained in the sections. I

1 H. B. 2300 - Chapter 226 ( Unauthorized use of checks)

I The time in which a customer is allowed to report an unauthorized signature

or a1 teration of an item is lessened from one year to one hundred and

eighty days under the provisions of this bill. The time 1 imitations for I a customer to report an unauthorized endorsement is also shortened from

three years to one year. The notice periods do not require a customer

to declare his intention to take legal action against the bank within

those same time periods.

In addition, the bank shall send to the customer on or with each bank

I statement a prescribed notice informing the customer sf these time

limitations.

I H. B. 2304 - Chapter 156 ( Standard fire pol icy; ' repeal )

This bill dl lows the Director of the Department of Insurance to exempt I certain insurance documents or forms from the requirement of needing approval

if that approval is not desirable or necessary for public protection.

1 In addition, the Director may approve any pol icy which is substantially

equivalent to or more favorable than the standard provisions. Language

stating that this sectibn does not apply to the Arizona standard fire

policy is removed.

The time limitations for specific categories of insurance policies with

respect to an event ~ ausing a loss shall- be one year. However, the time

period may be extended as a provision in the pol icy.

I .

H. B 2305 - Chapter 278 ( Consumer loans; insurancer

-

This bill, relating to the insuring of property securing a consumer loan,

1 aIln lotwhse fevoern tt hoef 1 tihvees doeaft hb otohf beoirtrhoewre risn stuor edb e spionussuer, e d thife tihnesyu raedr eb aslpaonuscees .

due on the insured loan shall be paid off by the insurer.

I H. B. 2306 - Chapter 227 ( Prepaid legal services)

I H. B. 2306 establishes a new article to deal with prepaid legal services.

The bill provides definitions for " prepaid legal insurance contracts" and

" prepaid 1 egal insurance corporation" or " corporation. "

I Some exceptions to this article include lawyer referral services author'ized

by the state bar, retainer contracts; legal assistance by employee organi-zations

to its members, and the furnishing of legal assistance to members

I or dependents of organizations which contract directly with a 1 awyer or 1 aw

firm for legal services.

Before a person can provide prepaid legal service insurance, the person must

have a certificate of authority from the Director of Insurance. The appli-cation

for a certificate of authority must provide specific information, and

must meet certain requirements. Issuance of these certificates is prescribed.

In addition, a bond or deposit shall be maintained with the State Treasurer.

The amounts of the deposits depend on the face value sf the legal insurance

contracts in force. The handling and. the form of the deposit or securities

are prescribed. The amount of the required deposit may be increased by the

Director if there has been a substantial change in the facts*

Legal insurance contract provisions include the requirement that a copy of

the form is filed and approved by the Department; al so, a certificate of the

contract's coverage must be issued to each person under the policy. In

addition, the rates shall be establ ished in accordance with the requirements

of the open competi tion rates and rating organiezati ons statutes.

Regulations for underwriting contracts, payment of the prescribed fees and

taxes required of an insurer, advertising and so1 ieitation of legal ser-vices,

and registration of sales agents are provided in the bill. In

addition, there are capital , surplus, and reserve requirements , and the

valuation of assets is established.

An annual statement is required, and there is a civil penalty for failure to

comply. A late fee will also be assessed. Furthermore, the bill provides

for the suspension or revocation of certificates of authority, hearings,

civil penalties, and other rules and regulations set by the Director.

HOB. 2307 - Chapter 157 ( Banks and financial institutions)

Under this 1 egi sl ation, the Superintendent of the Banking Department has

the authority to administer and enforce regulations 1 imi ting insider

transactions in financial institutisns and enterprises. These insider

transactions consist of those transactions between an institution and

a director, officer, or employee of that institution. Added under the

powers of the Banking Department is the requirement that enterprises must

employ appraisers to appraise any property owned or held as security,

and these enterprises must incur the expenses of such appraisal s .

I

I

Records of the Banking Department relating to financial insti tutisns shall I

not be pub1 ic documents. However, a new section requires a9 1 documents

of an enterprise to be open to public inspection unless the Superintendent

determines it is necessary to withhold any information for the welfare

of the pub1 ic or that enterprise.

I

1

Another provision is for the recovery of expenses for investigations, I

1 i tigations , attorney fees, and other expenses in the event the Superintendent

prevails in any enforcement action. Currently, if a financial institution

or an enterprise prevails, they can recover all of their attorney fees. I

I The provisions i n a r t i c l e five were under the chapter pertaining to bank

organization and regulation. This b i l l puts them under the Banking

I Department ( Chapter 1 of T i t l e 6) where they apply to a1 1 financial

i n s t i t u t i o n s and enterprises. Included are procedures f o r the suspension

and removal of officers of a financial i n s t i t u t i o n or enterprise, and

I for enforcement of orders pursuant to t h i s a r t i c l e . The old laws on pro-ceedings

f o r cease and desist, and f o r o f f i c e r removal are repealea.

This b i l l raises the bond a person, f i r m , association, or corporation I 1 icensed as a mortgage broker must deposit with the Superintendent from

$ 5,000.00 to $ 25,000.00.

-

H. B. 2338 - Chapter 159 ( Issuance of bonds; form)

This b i l l allows e n t i t i e s , who are authorized by statute, to issue bonds

if those bonds are i n a form registrable as to the p r i n c i p a l , o r as

to both principal and interest. The bonds issued must be registered

by an authorized r e g i s t r a r or i n book entry forms of the registrar.

I n addition, the b i l l contains procedures for the registration, execution,

and issuance of bonds.

Provisions of payment of principal o r principal and interest on a bond,

and for establishing a record date have been included. A d e f i n i t i o n

of " registrar" has been added f o r the purposes of t h i s a r t i c l e . Costs.

incurred by employment of registrars are the 1 i a b i l i t i e s of the e n t i t y

obligated to repay the bonds and the costs may be paid from bond'proceeds. -

Contracts employing registrars are considered to be long- term obligations.

I n order to prescribe a form of bond which w i l l comply with the Tax Equity

and Fiscal Responsibility Act of 1982 ( P. L. 92- 248), the provisions of

t h i s a r t i c l e control i n the event the provisions are inconsistent with

other statutes.

I This b i l l carries an emergency clause.

B S . B. 1050 - Chapter 2 ( Mandatory vehicle insurance; exceptions)

S. B. 1050 exempts noncommercial t r a i l e r s , semitrailers, pedal bicycles

with helper motors ( mopeds), and golf carts which are not required to

I be registered from the mandatory motor vehicle insurance requirements that

became effective January 1, 1983. I n addition, t h i s b i l l removes the provision

that affirmation of financial responsi b i 1 i ty be a sworn notarized statement.

Certificates of deposit i n a financial i n s t i t u t i o n , along with' automobile I insurance, are accepted forms of financial responsi b i 1 i t y .

This b i l l i s an emergency measure and it i s effective retroactively to

I January 1 , 1983.

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S. B. 1201 - Chapter 116 ( Vehicle insurance rates; older persons)

This bill would allow insurers to provide additional reductions of motor

vehicle liability insurance rates for personal injury and property damage I to any individual over 55 years old who has successfully completed

an approved driver improvement course. Qualifying requirements of the

course are outlined, and a certificate issued by the agency sponsoring

I the course would be the basis for the premium reduction.

emp 1 oyees '

I Under this legislation, the state will be required to self- insure its

workmen Is compensation and employees ' 1 iabi 1 i ty through the Department

I of Administration, and the bill establ ishes a permanent workmen ' s com-pensation

1 iabil ity loss revolving fund for self- insured losses. Provisions

are made for the continued payment and processing by the State Compensation

Fund of claims against the state and for the purchase of excess loss

insurance from the State Compensation Fund.

In addition, the bill prescribes certain requirements contained in an

interagency contract, which includes provisions for the return of certain

reserves held by the State Compensation Fund. The distribution of the

returned reserves i s a1 so prescribed.

This bill carries an emergency clause.

S. B. 1319 - Chapter 235 ( Life care facilities)

1 The major revisions provided in this bill include definitions for

" administrator," " assets of a 1 ife care facility," and for " promoter."

I References to " applicants" are changed to " providers," " manager" to

" admini strator," and " disclosure statement" to " permit appl ication. "

The bill requires that certified financial statements of promoters,

I providers, and administrators must be included in the application for a permit to enter into 1 ife care contracts with respect to a particular

facility. The financial statements must include a balance sheet and related I statements of income, retained earnings or equity , and changes in financi a1

position for the three most recent years the provider, promoter or administra-tor

have been in existence. The financial statements must be reported u by a CPA.

In addition, a feasibility study shall be conducted, which will include

a financial forecast of the facility. This forecast is an estimate of I

the most likely financial position for the next thirteen years. An actuarial

study will be prepared by an independent consultant to determine if the

funds and reserves are sufficient for the life care facility to remain

solvent. The bill also provides that the Director of Insurance does not

I

determine the actual financial condition of a facility. The approval of

a permit is based solely on the information provided to the Director.

The faeil ity must provide an annual report, the contents of which are

specified, and the valuation of assets is provided, There is an annual

fee, and a civil penalty for failure to file the annual report.

I

The bill establishes a ratio of assets to liabilities. If funds and

revenues are inadequate or projected to be inadequate, the Director of the

1

Department of Insurance may hire an independent management consultant at

the expense of the 1 ife care provider. If a provider fails to implement

the recommendations of the consultant, the Director shall awl Y to the 1 . . -

Superior Court in order to assume management and rehabilitation of the

facility.

Furthermore, the bill provides that prior to the execution of a life care

contract and transfer of money or other property, the provider must deliver

to the person with whom the contract is entered into a disclosure statement

containing a copy of the certified financial statements and the feasibility

B

study, i

S. B. 1320 - Chapter 122 ( Controllins intePest in bank)

This bill adds holding companies to the definition of a financial institution,

and will place holding companies of state chartered financial institutions

under the jurisdiction of the State Banking Department. Holding companies

will be subject to examinations, investigations and supervision by the

I

Banking Department. I

C O M M E R C E

COM - 43-

B i l l Chapter Short T i t l e

269 A n t i - t r u s t action; fees; cost; penalties

92 Workmen's compensation; real estate

personnel

140 Workmen Is compensation; pub1 i c agency

emp 1 oyee

143 Mechanics ' and materialmen's 1 iens

21 Basis f o r sale o f gas01 ine

16 Shared work unempl oyment compensation ;

continuati on

203 Cc.

Y

Now: unemployment b e n e f i t s ; n a t i o n a l

guard and reserve pay

State compensation fund

Homestead and personal property exemptions

Racing ; c h a r i t y days

Limited partnerships

Racing; s a t e l l i t e f a c i l i t y

Juvenile alcohol offense

Shareholders of record; determination

date

C e r t i f i c a t e o f good standing; fee

Heal t h spas ; regulation

Beverage containers ; p u l l tabs prohibited

Spirituous l i q u o r franchises

Mobi 1 e home park ; 1 and1 ord- tenant

Uniform unclaimed property act

State l o t t e r y technical changes

Page

- 44- COM

H. B. 2049 - Chapter 269 ( Anti- trust action; fees; cost; penalties)

H. B. 2049 allows the Attorney General to collect taxable costs, fees and

expenses reasonably incurred and reasonable attorney fees for the state

in anti- trust actions. The costs recovered will be determined by the

court.

The bill also increased the civil pe- nalty for each anti- trust violation

from fifty thousand do1 jars to one hundred fifty thousand dollars.

H. B, 2102 - Chapter 92 ( Workmen's compensation ; real estate personnel )

H. B. 2102 exempts real estate 1 icensees from employee status for the

purposes of workmen's compensation under certain conditions.

This exclusion applies if the real estate licensee is paid based solely

upon the services, sales or other output he provides for the client rather

than on the number of hours he works.

A 1 icensee is also exempt if the services he provides for the client are

pursuant to a written contract that states the licensee is not being

treated as an employee with respect to such services for federal tax

purposes and for the purposes of this chapter.

H. B. 21 18 - Chapter 140 ( Workmen's compensation; pub1 ic agency employee)

H. B. 2118 makes an employee of a public agency who works under the

authority or jurisdiction of another public agency to be considered an

employee of both agencies for matters relating to workmen's compensation.

The primary employer remains solely responsible for the payment of

workmen's compensation benefits.

Both public agencies must first agree to this accordance through a contract

or agreement. Each agency which enters into this type of contract must

post a notice informing the employees of this accordance.

H. B. 2171 - Chapter 943 ( Mechanics' and materialmen's liens)

This bill expands the information needed in a preliminary 20 day notice

and notice of completion for mechanics' and materialmen's liens.

The notice must include a legal description using the subdivision plat,

street address or location of the job site in reference to landmarks

or commonly known roads in order to make a sufficient identification of

the property.

Anyone working for the owner or the original contractor must give notice

to the owner, contractor and the construction lender if the price for

Tabor, material s , machinery , fixtures or tool s that have been furnished

or that will be furnished exceeds 20% of the total price in any original

agreement or subsequent preliminary notice.

COM

A notice will not be considered defective if it includes a general

description of all the work done up until the date the notice was sent

as long as the additional expense has not exceeded 20% of the estimated

total price.

rn Finally, after the owner has recorded the completion of the project,

a notice of completion must be sent by either certified or registered l mail to the general contractor and a1 1 other people who have received

a preliminary 20 day notice. If the owner does not mail a copy of the

notice of completion to anyone who received a preliminary 20 day notice,

I then the general contractor has 90 days and a11 other people notified

have 60 days, to impress and secure the lien provided for in this article.

I H. B. 2201 - Chapter 21 ( Basis for sale of gasoline)

H. B. 2201 repeals ARS 41- 2082 which contained the formula used in the

determination of how many gallons of gasoline or diesel fuel would be

represented at 60" F. at the time it is loaded for sale. This formula

was inaccurate. I H. B. 2201 will continue to require the 60' F. calculations but does not

specify the actual formula. Instead, it refers to the use of the American

1 Society for Testing and Materials, Dl250- 80, Table 6B for the calculations.

Gasoline and diesel fuel vary in volume at different temperatures above or

below 60" F. This calculation gives a standard in quantities of 5,000

gallons or more of gasoline or diesel fuel to ensure the proper quantity is ' paid for and loaded.

1 H. B. 2232 - Chapter 16 ( Shared work unemployment compensation; continuation)

H. B. 2232 allows individuals who work in a shared work job situation to be

el igi ble to receive unemployment compensation for more than 26 weeks.

This applies only if the rate of insured unemployment in Arizona is equal

to or greater than 4% in that week and the preceeding 12 weeks. There

is no seasonal adjustment considered in the calculation of the rate of

insured unemployment.

This bill also removes the date shared work benefits would have been

repealed and makes conforming changes.

1 H. B. 2232 has an emergency clause.

H. B. 2235 - Chapter 203 - 0 I JNOW: Unemployment benefits; national guard and reserve pay)

I H. B. 2235 makes National Guard and Reservists weekend pay exempt from

the category of wages for the purpose of unemployment compensation. This

allows a guardsman or reservist to collect unemployment in an amount that

would equal, when added to their Guard or Reservist pay, their unemployment I compensation.

This bill contains an emergency clause.

- 46- COM

H. B. 2245 - Chapter 275 ( State compensation fund) I

This act will allow the State Compensation Fund to be on a more complete

regulatory parity with other private carriers. The Fund will be able to

expand coverage of employers who are already insured under the Fund, and

cover employees working outside the state on a temporary basis. The

assets of the State Compensation Fund shall consist of a7 1 premiums,

property, securities, income and interest earned. I

The manager of the Fund, in addition to acquiring property, may also

lease property. The manager may a1 so lease or rent space that is not

needed. A1 1 property owned by the Fund will be subject to ad valorem

taxes. The budget must be submitted to JLBC before Qctober l and must

be on a calendar year basis. The Board members, in addition to the $ 50

per day compensation, will be reimbursed for mileage and other expenses

as a1 lowed by law. Payments of dividends may . be made to pol icyholders

from the surplus of the State Compensation Fund if the Board so decides

by resolution.

Presently, the investment committee now invests surplus or reserve funds

under investment statutes of Publ ic Officers and Employees. The eommi ttee

wi 1 l now Pol 1 ow investment procedures under the Insurance statutes. In

addition, the State Compensation Fund will come under Title 20 relating to

insurance and the Department of Insurance, unless otherwise provided by

law. The marketing representative must obtain a 1 icense for sol iciting

workmen's compensation insurance.

If the Director of the Insurance Department finds that the State Csmpen-sation

Fund is not possessed of assets equal to liabilities and required

reserves, or that continuation of its business is hazardous to the pub7 ic

or policyholders, then the Director shall notify the manager and the chair-man

of the Board and furnish the Fund with his written recommendations.

The State Compensation Fund has 60 days to comply with the recommendations

and if they fail to do so, notice is given to the Governor, President of

the Senate, and Speaker of the House.

The State Compensation Fund is exempt from the following statutory pro-visions:

I

1. Publ ic Finance

2. Requirements for material s used in reqard to Pub1 i c Records

3. Department of Admini stration and State Personnel Board relating

to the Finance Division, Publ ic Building Maintenance and Surplus

Property

4. ~ ibrar~- and Archives

The Fund must determine the amount of federal tax they would pay if they

were a private carrier. ,

Issuance of 1 iabil ity insurance by the Fund shall be as full as any

private workmen's compensation insurer. I

This act would be effective after December 31, 1983.

COM

I H. B. 2257 - Chapter 237 ( Homestead and personal property exemptions)

H. B. 2257 makes revisions in the exemptions for homesteads and personal

property.

The changes include allowing a mobile home, the land it is located on,

and an apartment in a condominium to be eligible for the homestead

exemptions. The total exemption allqwed for one homestead shall not

exceed $ 50,000. I If a person does not claim a homestead exemption as stipulated, he is

still considered exempt from a1 l process prepaid rent, including security

I deposits, not exceeding $ 1000 or 13 month's rent.

If a homestead claim has been recorded before the date of a voluntary or

involuntary sale of the homestead, the claimant's interest will be

attached to identifiable cash proceeds from the sale. The homestead

exemption will continue for 18 months after the sale. At the end of 18

months the homestead exemption monies must have been reinvested or the

! exemption is considered void. Only one homestead exemption at a time may be held by a person.

1 A homestead exemption will be protected except in a case where the

claimant signed a consensual lien, including a mortgage, deed of trust,

contract or conveyance or a lien for labor or materials.

f A homestead is also no longer exempt to the extent that a judgment or

other lien, regardless of when the exemption is filed, may be satisfied

from the equity of the debtor exceeding the homestead exemption.

Abandonment :

@ A claimant may be removed from the homestead for up to two years without the homestead being considered abandoned or having a waiver of exemption.

A declaration of abandonment must be executed by the claimant and

8 acknowledged. The waiver or grant of the declaration of abandonment is e f f e c t i v e o n l y f r o m t h e t i m e o f i t s r e c o r d i n g i n t h e c o u n t y r e c o r d e r ' s

office. This article is not to be interpreted as a repealing of the I provisions of ARS 25- 214 subsection C dealing with the acquisition, con-veyance

and encumbrance of community property.

- Sale:

The sale of a homestead will be made by a judgment creditor other than a

mortgagee or beneficiary. Under a trust deed he may elect to sell by

1 judicial sale the property in which the debtor claims the homestead exemption. Bids will not be accepted that are lower than the debtors

homestead exemptions, plus the amount of any consensual 1 iens on the

property having a priority to the judgment, plus the costs of the sale.

I

I

- 48 - COM

After receiving a sufficient bid, the property will be sold and the f- irst

payment of money will be paid to the debtor in the amount of the exemption

plus any amount of any consensual 1 iens on the property having priority.

If there is no sale due to insufficient bids or in the ease of voluntary

I

abandonment, the judgment creditor may not charge the costs o f the sale

to the judgment debtor. 8

Availability of Exemptions: I

If married, each spouse is entitled to the exemptions allowed. They can

be combined in the same property or taken in different exempt property,

Exemptions for Personal Items:

----- WCVRRaalaatcoddctuiihhuoo em sao( lcrmal darersxmayti neemercrur lem oo c vka lue $ 100) - Motor vehicle ($ 1500 maximum value. If the debtor is crippled or

maimed it is a $ 4000 maximum value) - Professionally prescribed prothesis or a wheelchair

Equipment, instruments and books of the debtor or the spouse that are

necessary for the continuation of their trade, activity, business or

profession are a1 so exempt.

Money Benefits of Proceeds : 1

A9 1 monies received or payable to a legal guardian shall be exempt. The

maximum amount for this section is raised from $ 10,0QQ to $ 20,000. How-ever,

the benefits or proceeds are not exempt from normal service charges

assessed to the account at the financial institution carrying the account.

I

H. B. 2315 - Chapter 264 ( Racing; charity days)

On charity racing days for either dog or horse racing, it is required C

that the amount of money collected for the charity must not be less than

the amount which would otherwise have gone to the state as the state's

share on a nonckarity racing day. I

H. B. 2315 changes the date for the submission of the Racing Commission's

annual report to the Governor and Legislature, The report will now be

due on the same date as the budget estimates, which are submitted not later

than September 1 .

This bill establishes the County Fair Racing Fund. The State Treasurer

will deposit 3% of a1 1 the monies the state receives as the state's share

P

from racing into this Fund. The Fund monies will be used for the admi nis-tration

of county fair racing. The management of this money is subject

to legislative appropriation. Any monies in excess of $ 75,000 which remain

I

unused at the end of the fiscal year will be placed in the State's General

Fund.

COM

The amount of money a dog race permittee may deduct from the total amount I handled in the pari- mutuel pool may be increased from 18% under certain

terms. Presently 21% of the total may be deducted in dog races using

two animals and 25% in races involving three or more dogs. However,

1 H. B. 2315 will require that if that extra amount over 18% is deducted,

one- half of that excess shall be used to supplement the purses.

Finally, this bill requires that a copy of annual financial audits and

criminal investigation reports must be made pub1 ic record and be open for

inspection.

I H. B. 2414 - Chapter 208 ( Limited partnerships1

H. B. 2414 prescribes the effect of the revised Uniform Limited Partnership

Act, which was passed during the 1982 regular session, upon existing limited

partnerships. This bill is retroactive to July 24, 1982.

I In domestic limited partnerships a general partner cannot limit his

liability under the partnership agreement. Also, if one partner withdraws

from the partnership, the change must be executed and filed with the

Secretary of State. Certain filing requirements must also be made in the

office of the Secretary of State.

I Foreign limited partnerships formed in jurisdictions outside the United

States must comply with the filing requirements set forth in this Act.

Also set forth in this legislation is a section on what constitutes doing

I business in Arizona by a foreign limited partnership and under certain

circumstances a foreign limited partnership is allowed to proceed with

civil action if they have filed in Arizona.

Limited partnerships can restate their certificates of limited partnership

to include their original certificate and a1 1 the amendments. Fictitious

1 name certificates will not have to be recorded for limited partnerships

which are in compliance with this Act.

Finally, this bill includes the filing fees charged by the Secretary of I State's office and clarifies certain existing language.

This bill is an emergency measure.

- H. B. 2416 - Chapter 311 ( Racing; satellite facility1

I H. B. 2416 would allow pari- mutuel wagering for authorized races to take

place at one additional facjlity other than the race track itself. The

additional facility must be authorized for racing before it will be

allowed to handle wagering. The permittee must receive the approval of

the governing body of the city or town where the additional facility is

E located or, if the facility is within an unincorporated area of a county,

the authorization must be given by the Board of Supervisors.

The race may be televised at the additional facility at the time the race

1 oins thehled . r esAunlyt s peorfs otnh ew ittehlienv istehde aruatcheo raitz etdh ea dfdaictiilointayl byf acciolnittryi bmuatyi nwga gteo r

the pari- mutuel pool .

- 50- COM

Any race upon which wagering is permitted under this legislation, is also

considered to take place at the additional facility in the county in

which the additional facility is located and therefore will be limited in

the same manner as actual racing in that county.

This bill a1 so strikes lanquaqe that a1 lowed the Department of Racing to

revoke the 1 icense of any officer, director or employee of a permittee

I

who enters his own dog or horse in a race held at a meeting at the permittee's

facility or at any facility in which- the officer, director or employee

has a financial interest.

A study will be conducted by the Arizona Department of Racing prior to

October 1, 7983. The study will include the security requirements,

financ~ a1 and audit control s , hours of operation and condi tians necessary

for fhe operation for off- track facilities. It will also promulgate rules

and regulations for pari- mutuel wagering.

This act has a delayed effective date from and after September 30, 1983, , I

H. B. 2470 - Chapter 209 ( Juvenile alcohol offense)

H. B. 2470 allows the court the choice of requiring a juvenile who has

been convicted of unlawful ly purchasing, possessing or consuming 1 iquor,

to pay a fine or perform an equivalent amount of community service work.

This bill a1 so a1 lows a contested or uncontested citation for a juvenile

alcohol offense to be heard in the same manner as a traffic citation.

S. B. 1043 - Chapter 24 ( Shareholders of record; determination date) I

The fixing date for the determination of shareholders of record has been

increased from 60 days to not more than 70 days. The fixing date is

important in determining the shareholders who are entitled to receive

a notice for any vote or meeting of shareholders or the adjournment of

I

such a meeting, payment of dividends, distribution or allotment of any

rights or the change, conversion or exchange of shares.

S. B. 1174 - Chapter 27 ( Certificate of good standing; fee)

S. B. 1974 allows a state agency to obtain only a confirmation of good

standing from the Corporation Commission in order to renew a license or

reg1 stration of an association or corporation. The actual certificate

of good standing will not be required by the agency.

COM - 51 -

S. B. 1185 - Chapter 181 ( Health spas;. regulation)

1 S. B. 1185 provides for the formation and regulation of health spa service

contracts. The front page of the contract must conspicuously display

the customer's total payment price. An existing spa may not charge more

than 20% of the total price as a down payment or a maximum of 52 if the

spa has not opened for business. A customer may make a special written

request of the spa that a1 lows them to pay the total price. This is

appl icable only if the spa has been in operation in Arizona for two years

or more. The customer must receive a copy of his written request.

I The maximum life of a health spa contract is limited to a three year

period. A contract for any new or increased spa services offered during

this period may be cancelled by the customer by midnight of the third

I operating day. The customer must notify the spa of the cancel lation in

writing. Any monies paid pursuant to the contract must be fully refunded

within 30 days of receipt of the notice of cancellation.

I A contract may also be voided by the customer if the spa has given mis-leading

or false information, notice or advertisement about its facilities.

I S. B. 1185 also includes a section concerning a customer's right of action

or defense against a spa.

Finally, this bill defines health spa, health spa services, operating I day and excludes certain spas from these regulations.

Contracts executed prior to the effective date of this act are not affected

by these regulations.

S. B. 1202 - Chapter 29 ( Beverage containers; pull tabs prohibited) 1 S. B. 1202 sets forth definitions for " beverage," " consumer" and " container."

It is now a petty offense for anyone to sell or offer to sell to a consumer

a beverage in a container which has a. metal opening device that detaches

when openi ng the beverage container.

S. B. 1258 - Chapter 233 ( Spirituous liquor franchises)

It is no longer necessary for the agreement between a wholesaler and supplier

I of spirituous liquor to be in the form of a written agreement.

This bill also excludes a " wholesaler" from the definition of a " supplier."

I S. B. 1324 - Chapter 236 ( Mobile home park; landlord- tenant)

B S. B. 1324 provides for the appointment of special hearing officers to

hear only mobile home park landlord- tenant controversies arising under

Title 33, Chapter 11 which is the Mobile Home Park Residential Landlord- I Tenant Act or under the rental agreement between the landlord and the

tenant.

I The state has the power to control the rent on mobile home parks unless

the spaces are owned, financed, insured or subsidized by a state agency,

or by a charter city, city or town.

- 52- COM

If a tenant has repeatedly violated any provisions in Chapter 11, and

the landlord can provide clear and convincing evidence to this fact, the

landlord may terminate or refuse t o renew a rental agreement.

If the landlord purchases util i ty services from a pub1 ic service corporation

he must provide the tenant w i t h a statement of the average charge per

month for a mobile home space in the previous year for the inspection,

maintenance and the repair of the distribution system.

Finally, if the landlord redi. stributes the u t i l i t i e s from the public service

corporation to the tenants, the aggregate amount of the separately stated

charges shall not be in excess of what the landlord paid to the public

utility corporation. The only additional charge may be the cost of the

bill preparation and submeter reading. This charge will not exceed one

dollar per month for each mobile home space.

S. B. 1355 - Chapter 240 ( Uniform unclaimed property act)

S. B. 1355 repealed the Uniform Disposition of Unclaimed Property Act and

inserted the Uniform Unclaimed Property Act.

This bill increases the ability for the enforcement and the voluntary

compliance of unclaimed property due to the expansion of specific

coverage areas for unclaimed property.

A holder of unclaimed property must attempt to notify the owner in writing

before reporting the property as being unclaimed. There are also more

specific guidelines as to what costs may be recovered for the administra-tion

of unclaimed property.

More specific time periods are included for the dormancy period of

unclaimed property for the property to be considered abandoned. These

time periods were chosen in order t o reflect the properties' useful life.

Service charges on dormant accounts must be in the form of a written notice

which w i 7 1 provide for " 1 awful service charging. '"

There is an imposition of a 24- month moratorium on locator firms. During

the 24- month period the Unclaimed Property U n i t can attempt to locate

the owners of the property or the owners may ascertain the status of their

accounts.

The penal ties for the noncompliance w i t h this Act are based upon a specific

percentage of the properties ' value and there is a penalty of $ 100 a day

for each day a report on unclaimed property is withheld up to a maximum

fine of $ 5,000.

The administrator will have the authority to destroy property which has

no substantial value and is able ta receive property before the presumptive

period of abandonment.

S. B. 1355 also provides the procedure for the claiming by another state

of property in the custody of Arizona. Arizona may turn over the property

to another state if that state is the last known address of the owner.

Finally, this bill contains a severability clause and an effective date

of January 1 , 1984.

COM - 53-

S. B. 1381 - Chapter 305 ( State lottery technical changes)

S. B. 1381 makes several changes regulating the state lottery.

The advertising and promotional budget has been increased from 2% to not

more than 4% of the total gross revenues from the lottery.

The director of the lottery may determine that certain bids received

under ARS 5- 509 are confidential if the nature of the bid may impact on

the security and integrity of the lottery. S. B. 1381 also clarifies the

procedure for the awarding of a prize of $ 1,000 or more to a person under

the age of 18.

Current language was removed which stated that prizes paid out in a particular

game may not exceed the total revenues from the sale of that game. An

instant game drawing will not be allowed to be held more often than weekly

and drawings or selections in a numbers or other on- line computer game

may be held no more than once a week. No numbers or other on- line computer

game shall overlap another numbers or on- 1 i ne computer game.

Final ly, there is a technical change referencing an additional federal

tax code section which is used in the withholding on gambling winnings.

Lottery winnings prior to March 22, 1983, are not subject to state tax.

- Bill Chapter Short Title Page I

Hospital property; sale or lease

Towns ; real property exchange

Obsolete county statutes

County employee merit awards

Improvement districts ; enhanced

municipal services

Cities; towns; optional election

procedure

Municipalities; emergency assistance;

limited liability

Alternative method for incorporation

County purchases; competitive bidding

Political subdivisions; purchasing

agreements

Auditor general ; access to records

Fire district; fire protection charges

Recorded maps; specifications

County fair associations; leases

2292 97 111eg- a1 payment of pub1 ic monies

2329 21 3 Towns; construction of streets

1004 84 County park 1 aw enforcement ~ fifce rs

1015 63 Conciliation court; fees

1022 168 Annexation; notice to property owners

1026. 243 Recreation center districts

1027 31 2

Now: Taxation; taxable status of

municipal lease- purchase agreements

with rai 1 roads

11 15 197 Counties; hazard abatement authority

1135 231 Counties ; aid to arts organization

9169 69 Counties ; exemption for recording fees

1198 183 Update county treasurer statutes

1238 326 Industrial devel opmnt autkori ties

1 244 119 Sales tax license; building permit

1267 291 Counties; legal descriptions

1272 234 fir: & W~+ ctz ; f&~; rq3iwH- q

NOW: Property; forcible detainer

1371 128 County Suiiding code advisory board

I H. B. 2091 - Chapter 36 ( Hospital property; sale or lease)

I H. 8. 2091 allows the Board of Supervisors of a county w i t h a population

of less than 250,000 persons to lease, sublease or sell a hospital facility

I or hospital real property to a hospital district within the county without

a public auction and on terms approved by the Board of Supervisors.

H. B. 2107 - Chapter 57 ( Towns, real property exchange)

This bill allows incorporated towns w i t h a population of less than 5,000

to exchange a parcel of real property for another parcel of real - pro erty

within the incorporated town 1 imits as long as the parcels are o i su -

I stantially equal value. This bill requires that a notice of intent to

exchange be pub1 ished in a newspaper of general circulation.

I H. B. 2111 - Chapter 37 ( Obsolete county statutes)

I H. B. 211 1 states that a county officer shall not leave the state for more

than 30 days without the consent of the Board of Supervisors. This bill

a1 so repeal s several outdated county statutes.

I I t is an emergency measure.

I H. B. 2112 - Chapter 44 ( County employee merit awards)

H. B. 2112 allows a County Board of Supervisors to provide merit awards I for county employees. The award can be given for any of the following:

1 . An adopted procedure or idea which resul ted in el iminating or

I reducing county expenditures or improving operations in the public

interest which is not a part of an employees required employment

duties.

I 2. The performance of a special act or service in the pub1 ic interest

which is not a part of an employees regular enploynent duties.

I The award shall be administered by a Merit Award System Board appointed by the Board of Supervisors. The Merit Award System Board shall review

a1 1 suggestions and recommend for approval a1 1 merit awards with the

concurrence of the head of the department in which the cost saving occurred.

The size of the Merit System Board shall be equal to the number of

supervisors for that county and each supervisor shall name one member

I to serve on the Board.

No merit award may exceed the amount of $ 1000 and only county employees

are eligible for awards. The award is not to be considered extra

compensation.

H. B. 2172 allows an improvement district to be formed in a designated area,

an area of the municipal i ty designated as a slum; b'l ighted area, a pocket

of poverty, or a neighborhood strategy area as defined by the United States

Department of Housing and Urban Development, for the purpose of providing

certain services at a higher level or greater degree than those provided

in the remainder of the city. These services are:

publ ic safety

Pi re protection

refuse col 1 ection

street or s idewal k c1ean. ing

l andscape mi ntenance in publ i c areas

H. B. 21 78 - Chapter 60 ( Cities; towns; optional election procedure)

H. B. 2178 provides that a town with a population of 5,000 or less, may,

by a majority vote of the qua1 i fied electors, elect to off ice those

candidates receiving the highest number of votes in a primary election.

No further election shall be held if at least 3/ 5 of the seats are filled

by persons receiving a majority of the votes cast and there is no mention

on the ballot of the candidate's political party affiljatisn or support.

H. B. 2179 prescribes that a city, town, special district or an employee

of a political subdivision, if requested by a publ ic body to assist at

a traffic accident on a public right- of- way, or to render emergency aid

for an emergency which occurred outside the corporate 1 imits of the city

I

or town, is not 1 iable for any civil or other damages as the result of

any act or failure to act. If the actions of a political subdivision

or employee involved gross negligence, the political subdivision or

I

employee is liable. I

I H. B. 2188 - Chapter 77 ( Alternative method for incorporation)

I H. B. 2188 provides an alternative method of incorporation for a community

of 2,500 or more which includes four special road districts and a sanitary

district. This bill also provides a- method of dissolving the special I districts once the city is organized.

-

The bill requires at least 20% of the community to petition the Board

I of Supervisors, requesting that an election be ca1 led on whether to incor-porate

the community. If a majority of the community votes for incorpora-tion,

separate - elections shall be held on the issue of dissolving the

I special districts. If the electors fail to approve the incorporation

issue, or dissolution of the special districts, incorporation will not

occur. If approval in each of the elections is granted, the Board of

I Supervisors shall name the city and the community will be incorporated.

H. B. 2188 is an emergency measure. I

I H. B. 2194 - Chapter 145 ( County purchases; competitive bidding)

H. B. 21 94 provides an a1 ternative competitive bidding procedure for counties.

This bill specifies that a1 1 purchases of goods and supplies, except profes-

1 sional services, made by the county having an estimated cost of over $ 5,000 shall be based on sealed, competitive bids. Bids shall be opened

publicly and the county purchasing agent shall make awards with reasonable I promptness by written notice. The Board of Supervisors may reject a1 1

bids if the county purchasing agent determines that rejection is in the

pub1 ic interest. If the county Board of Supervisors adopts a resolution

I to make purchases using this method, these procedures must be used by

a11 budget units.

I H. B. 2196 - Chapter 50 ( Political subdivisions; purchasing agreements2

I H. B. 2196 allows the governing body of any city, county, town, school

district or other political subdivision to enter into purchasing agreements

with the purchasing section of the Department of Administration Division I of Finance for the purpose of joint bidding and purchase agreements.

Agreements entered into pursuant to this bi 11 are exempt from certain

requirements of intergovernmental agreements. The Attorney General must

I approve the form of an agreement prior to the agreement's consumation.

H. 8. 2200 - Chapter 274 ( Auditor genera1 ; access to records)

H. B. 2200 gives the Auditor General the authority ts examine the State

Banking Department" records or any records sf any political subdivioi~ n

of this state for the purpose of perfarming audits as required by law. I

All working records and files of the Auditor General are not public

records and are exempt from Title 39, chapter l prescribing the avail-ability

oftpublic records.

The Auditor General may also obtain minutes of discussions held in

executive session. Certain procedures are out1 ined which provide for

a complaint to be made to the County Attorney or Attorney General

regarding a violation of the confidentiality of minutes from an exee-utive

session.

H. B. 2218 - Chapter 51 ( fire district; fire protection charges)

H. B. 2218 allows a fire district to extinguish a fire which is located

outside the fire district if the fire presents a hazard to any

property within the fire district. The owner of land whose fire is

extinguished must pay the cost of extinguishing the fire.

H. B. 2219 - Chapter 96 ( Recorded maps; specifications)

H. B. 2219 requires all maps presented for recording to have % title that

at least % ndicates the name of the subdivision or area and describes the

location of the area by section, township and range. The original map

I

must also be drawn on polyester or 1 inen, or a copy reproduced on poly-ester

by a photographic silver imagery process, or other method that

assures archival qual i ty . I

H. B. 2231 - Chapter 52 ( County fair associations; leases1

This bill makes a technical correction in language prescribing those

qual ified te lease or sublease county owned land from the county without

public auction. I

H. B. 2292 - Chapter 97 ( Illegal payment of public monies)

I Hil. Bl. e ga22l 92p ayamlloenwt s oft hep uAblttiocr nmeoyn iGese, n eorra l, i f atth eh ims odniisecs rehativoe nb, eetno epnajiodi, n toth e

recover the monies plus 20% of such amount together w i t h interest and

1 Scotasttes Tinrcelausduirnegr oatrt oortnheeyr afepepsr. o prTihaet em oofnfiiecsi arelc otove rthede wcrielld ibte ofp atidh e tofu nthd e

from which the payment was made.

I

I H. B. 2329 - Chapter 213 ( Towns; construction of streets)

-

H. B.. 2329 a1 lows the comnon councils of cities and towns t o require owners

I of property to construct streets w i t h i n and adjacent to the property.

If the council determines that streets are necessary before development

of the property, the costs of construction may be paid by the town and ( assessed against the property a t the time of development provided that:

I 1. The assessment of property does not exceed the cost of improving

1/ 2 of the width or more than 1320 lineal feet of adjacent

arterial streets. If a parcel of land is presently being used. I for single family residential use and the width of such does not - exceed 200 lineal feet, such property shall not be assessed

greater than 1/ 2 the cost of, the average residential street

I w i t h i n such city or town.

2. The assessment of property does not exceed the actual expense

I of construction paid by the town.

I S. B. 1004 - Chapter 84 ( County park law enforcement officers)

S. B. 1004 allows the county parks and recreation commission to appoint

I Aann y aopfp oiitnste eo fmfiucset rsm eoert ethmep lmoyineiemsu ma s qpuaarlki fircanagtieorn sla wf oern flaowrc eemnfeonrtc eomffeinct ers.

officers. Park ranger law enforcement officers have the authority of

I pareeaaces ounfdfiecr etrhse w choomsem disustiioens's shsuaplle rbvei sitoon parnodt eccot ntthroe l paagrkasi nasntd daremcargeea, tiaosn

we1 1 as preserve the peace, pub1 ic health and safety. Park ranger law

enforcement officers are not el igible for participation i n the Pub1 ic 1 Safety Personnel Reti rement System.

( S. B. 1015 - Chapter 63 ( Conciliation court; fees)

This bill increases the dissolution and annulment filing fees for concil ia-

( tion courts. The increase is from $ 50 to $ 70 for the petitioner and from

$ 40 to $ 50 for the respondent.

I

S. B. 1022 - Chapter 168 ( Annexation; notice to property owners)

S. B. 1022 requires the governing body of a city or town to send by first

class mail written notice of an annexation proposal to each owner of real

property in the area to be annexed as shown on the list of property owners

I

furnished by the County Assessor and the Department of Property Valuation. I

S. B. 1026 - Chapter 243 ( Recreation center districts)

S. B. 1026 authorizes the creation of a recreation center district after

November 1 , 1983, after approval of 25% of the re i stered voters in the

district. A district must lie within the Nationa 9 Park System and must

contain at least 95% of National Park System lands. The district would

I

be created to maintain and operate existing recreation and library

facilities within the district. I

On or after January 1, 1984, the board of the district may levy and col 1 ect

a transaction privilege tax on retail sales within the district not to

exceed 1% in the first year and 0.5% for the remaining~ life of the district.

I

A11 districts formed under this act must be dissolved ' no later than

December 31 , 1 986. I -

S. B. 1027 - Chapter 312 - -% xb- ( MOW: Taxation;

taxable status of municipal lease- purchase agreements with

rai 1 roads1

This bill provides that in the case of a lease- purchase agreement entered

into between a municipality and a railroad company, the railroad property

contained in the agreement is exempt from property taxation. In order

I

for the exemption to be valid, the agreement must be entered into prior

to September 30, 1983. I

The purpose of this legislation is to preclude the destruction of the

railroad line between the city of Williams and the Grand Canyon National

Park while a1 lowing for the eventual private development and operation I -

of the line.

I S. B. 1115 - Chapter 197 ( Counties; hazard abatement authority)

S. B. 11 15 a1 lows the Board of Supervisors to, by ordinance, compel the

I owner, lessee or occupant of buildings, grounds or lots located in the

unincorporated areas of the county to remove rubbish, trash, weeds, filth

or debris which constitutes a hazard to public health and safety from

I bui 1 dings, grounds, lots, contiguous sidewal ks, streets and a1 leys . Any

ordinance requires proper written notice as outlined in statute and must

provide for appeal to the Board of Supervisors. If the rubbish is not

removed the Board may prescribe by ordinance the procedure for removing

I the rubbish and then charge the owner for the cost of removing the rubbish, plus 5% for inspection and incidental cost. Counties may provide that

unpaid assessments constitute a lien on the property. I

I S. B. 1135 - Chapter 231 ( Counties; aid to arts organization)

S. B. 1135 allows the boards of supervisors of counties having a population

I less than 1,300,000 to appropriate each year from the general fund $ 70,000 to support an arts support fund for arts organizations operated within

the boundaries of the county for the benefit of the public. It may also I be used for arts organizations operated by any incorporated city or town.

I S. B. 1169 - Chapter 69 ( Counties; exemption for recording fees)

I S. B. 1169 exempts an office, agency or department of the county which

records a document from paying a fee to the county recorder.

I S. B. 11 98 - Chapter 183 ( Update county treasurer statutes)

I S. B. 1198 makes conforming and substantive changes to legislation pertaining

to the duties of county treasurer.

The substantive changes include prescribing that the treasurer shall issue I a receipt for all monies he receives as treasurer or as tax collector,

except tax payments made by check. Failure to issue a receipt in the manner

described is a class 2 misdemeanor. I If a balance remains in the School Bond Building Fund after acquisition

or completion of construction of facilities for which the bonds were issued,

I the balance of the fund may be transferred to the debt service fund of

the district if the school district has outstanding bond indebtedness.

If the school district has no outstanding bonded indebtedness, the balance

remaining in the fund shall be transferred to the general fund of the district.

Interest on delinquent personal property taxer will be 16% per year simple,

I prorated monthly as of the first day of the month until paid.

S. B. 1238 - Chapter 326 ( Industrial development authorities) I

S. B. 1238 prescribes that industrial development facilities may also

include research and development faci 1 i ties as we9 l as commercial enter-prises,

office, recreational, hotel, motel and service used if the

faci 1 i ties authorized are located in a designated bl ighted area.

S. B. 1238 also specifies that any amount not allocated to a corporation

by September 30 of each year shall revert to the Housing Finance Review

Board. If any portion of the amount allocated to the Board is not used,

the amount may be transferred by the Board to any corporation that is

eligible to receive the funds under this section.

The Housing Finance Review Board may also exercise those powers granted

to corporations with respect to projects located anywhere in this state,

consisting of residential real property for single family dwell ing units.

The Board shall provide bonds on an equitable statewide basis. It shall

not permit the use of such monies within a city, town or county unless

the governing body of such city, town or county has approved such use.

The governing body must disapprove by formal action within 21 days PolSowing

written notice of the Board's intent to issue the bonds.

S. B. 1244 - Chapter 119 ( Sales tax license; building permit)

S. B. 1244 specifies that if a contractor is employed for any construction

exceeding the cost of $ 10,000, a building permit may not be issued unless

the contractor holds a valid privilege tax license for engaging in the

business of contracting.

- S . B. 1267 - Chapter 291 ( Counties; legal descriptions1 I

S. B. 1267 prescribes legal descriptions of Yuma and La Paz Counties and

makes conforming changes to other county legal descriptions and statutes. I

The bill creates a Joint Committee on Fiscal and Related Impacts of County

Boundary Changes to study the fiscal and other impacts of county boundary

changes and the process of forming new counties by initiative petition.

The committee wi 11 consist of one member appoi- nted by the Governor, six

legislators and six public members knowledgable about fiscal and other

problems existing in counties due to county boundary changes. The

commi ttee wi 11 prepare a report by December- 31 , 1983 containing its

legislative recommendations.

I

S. B. 1267 also places a moratorium on the formation of new counties

beginning May 16, 1983 through April 1, 1985.

I

This is an emergency measure. I

1. S. B. 1 2 7 2 - C h a p t e r 2 3 4 - C i r c B i s t ~ i ; t z ; f * & z ; r ~ ~ ( N o w : Property;

forcible detainer)

I This bill amends statutes relating to forcible detainer and renting agree- ments. A forcible detainer exists if a tenant has had his tenancy termi-nated

and remains in possession of the premises after the landlord has I made a written demand for possession of the premises.

If the forcible detainer action is decided by the court, the prevailing

I tpahritsy waisn ptrhoev aidcetdi onf owri liln tbeh ea wraenrtdaeld aagtrteoermneenyt . f ees regardless of whether

I

S. B. 1272 also requires that a landlord who purchases utility services I from a pub1 ic service corporation and distribuies the util i ties through

a system owned or operated by him, cannot charge the tenants more than

his actual costs. The tenants are not required to pay any other

( separately stated charges for the utility services.

Finally, if there is a breach in the rental agreement that is both

material and irreparable, such as the discharge of a weapon on the

premises, or if there is an infl iction of bodily harm upon the land-lord,

his agent or another tenant, the landlord may deliver a notice

I for the inmediate termination of the rental agreemgnt and may proceed with a forcible entry dnd detainer action. Any remedy provided for in

the recovery of damages, the injunctive re1 ief or recovery of possession

I aofn y threi gphrtesm iasreiss inpgu rsuunadnetr tsou bas efcatvioorna Ab leo fd AeRtSa in3e3r- 1a3c6t8i- o( nn onisc omipn- l aldadnicet iwoint ht o

rental agreement by tenant; failure to pay rent.)

S. B. 1371 - Chapter 128 ( County building code advisory board)

I S . B. 1371 a1 lows a person engaged in the electrical , mechanical or plumbing

trade to be a member of the County Building Code Advisory Board. If the

Advisory Board consists of more than five members the additional members

may be engaged in the construction and design industry. The county official

charged with the enforcement of the code shall serve, without vote, as

I an ex officio member of the Board and shall act as secretary. Members

will be appointed for a term of four years staggered so that at least

one, but no more than twa terms expire each year. This bill also a1 lows

I counties, cities or towns tq provide for enforcing codes by intergovernmental

agreements.

E D U C A T I O N

B i l l Chapter Short T i t l e Page

39 Schools; c a p i t a l levy plan; notice

267 Ir. ,,+

5 uu

Now: Schools; excess u t i l i t y costs

9 School s ; community colleges ; growth r a t e

220 Schools; revenue l i m i t ; state aid

89 Schools ; budgets ; c o n s t i t u t i o n a l

expenditure l i m i t a t i o n

21 4 Schools; county and state assistance

1 Deaf and b l ind school ; superintendent

141

Now: Community college d i s t r i c t ;

formation; tax levy

323

Now: Four day school week p i l o t

programs

62

Now: Tax rate ; educational purposes

146 Pupil d i s c i p l i n a r y proceedings

151 Schools; e l e c t i o n precincts; boundaries

154 Vocational and technical education

28 1 Teachers; criminal charges; salary

282 Community col leges ; board members ; terms

241 School funds ; county treasurer; duties

284 Board of regents development projects

325 Pupils; promotion; graduation;

requi rements

14 Schools; teacherages

171 School board members ; nomination

p e t i t i o n s

229 Schools; sudden growth adjustments

133 School s ; transportation revenue control

1 i m i t

174 Intermediate schools

114 School employees; annuity plan

182 Schools; i n s t r u c t i o n a l computer software

289 Universities ; faculty; merit increases

232 Universities; eminent scholars; matching

monies

184 Schools for deaf and b l ind; employees

118 Transporting school d i s t r i c t s ; merger

252 Special education; family insurance

coverage

1299 188 Regents; WICHE; c o l l e c t i o n s revolving

fund

H. B. 2012 - Chapter 39 ( Schools; capital levy plan; notice)

I This bill, as recommended by the State Board of Education, requires the

notice of a public hearing on the amendment to or adoption of a capital

levy plan to be published by the governing board in a newspaper of

I general circulation within the school district no later than fifteen days

prior to the hearing.

I This bill carries an emergency clause.

I H. B. 2018 - Chapter 267 - Sekee:;; t; t. d ;. t ;. --- L----------- 4- ( NOW: Schools

excess utility-

The following is an outline of the provisions included in H. B. 2018:

I I. Excess Utility Costs

This bill allows school districts to budget for excess utility costs

I outside the revenue control 1 imit ( RCL).

A. The Arizona Department of Education and the Auditor General's

I office shall specify expenditure items allowable as excess

utility costs. These expenditure items are limited to direct

operational costs of heating, cooling, water, electricity,

I telephone communications and sanitational fees.

B. School districts are permitted to expend m~ nies from two sources

for excess utility costs only after they have spent to the full I amount budgeted in their utility expenditure line of the budget.

The two sources are:

I 1. Interest earned on Maintenance and Operation ( M& O) monies

during the fiscal year.

2. Monies saved through pupil transportation efficiency

measures.

I C. The base for excess utility costs will be determined by multiplying

the actual utility costs for FY 1981 - 82 by the percent of increase

or decrease in the M& O budget from FY 1981 - 82 to FY 1982- 83.

I The sum of the resulting product and the actual util ity costs

for FY 1981- 82 will be the new base for excess utility costs

for FY 1983- 84.

I

I

11. Disposition of proceeds from the Sale, Lease or Rental of School

Property

Individual ly, the proceeds from the sale of school property,

long- term lease and a maintenance and operation ( M& O) budget

override cannot exceed 10% of the RCL. Proceeds from the sale

or long- term lease of school property may not exceed 5% of

the revenue control limit ( RCL) in any year in which a budget

increase above the RCL is authorized by the voters in the

district. Thus, a combination of the proceeds from the sale

of school property, 1 ong- tem lease and a M88 budget override

cannot exceed 15% of the RCL.

B. Proceeds from the rental of school property may be used in

the M& O budget and are specifical ly exempt from the WCb indefinitely. I

III. Compl iance with Court Ordered Desegregation for FY 1983- 84 and FY 1984- 85 1

This provision will exempt for fiscal years 1983- 84 and 9984- 85 the

expenses incurred by a school district for complying with a desegre-gation

order from the RCL. I

A. Limits t o the amounts which may be exempted from the RCL: I

1. High scnool and common school districts are 1 imi ted to an

amount not to exceed 106 on each $ 100 of limited property

val ue . I

2. Unified school districts and common school districts not

within a high school- district and common school districts

offering instructi~ ni n high school subjects are 1 imi ted

to an amount not to exceed 206 on each $ 900 of limited

property val ue . I

B. To budget monies outside the RCL the governing board shall

transfer monies from the Capital bevy Fund to the Maintenance

and Operation Fund in an amount equal to the excess desegregation

expenses which exceed the RCL. This must be done by June 30

I

of the current year. I

This bill was an emergency measure.

H. B. 2022 - Chapter 9 ( Schools; community colleges; growth rate)

The major issue this bill addresses is the annual growth rate in the school

finance formula for FY 1983- 84 and subsequent years. Beginning with FY

1974- 75 school district budget limits have been governed by a 7% annual

growth rate. From the 1974- 75 school year through the 1981- 82 school year

the 7% annual growth rate has led to an average annual increase of 10.8%

in total maintenance and operati on ( M& O) expenditures ( a 10.3% average

annual increase in M& O expenditures per ADM) . The GNP Price Deflator, the

measure of inflation used by the state in establ ishing various expenditure

limits, increased at an annual rate of 7.6% over the same period. Due to

the state's bleak financial outlook for FY 83- 84, spending cuts in most

areas were inevitable; however, this bill provided pub1 ic schools and

community college districts with a 4% growth rate for FY 1983- 84 and for

subsequent years thereafter would tie the growth rate to the GNP implicit

price deflator. While the state will provide state aid up to the 42

growth rate level, school districts may budget based upon a 6% growth rate

by using capital levy funds ( accumulated or to be collected) and/ or

PL 81 - 874 monies. The 4% growth rate also applies to the growth in school

district capital outlay monies and state aid for community colleges. The

FY 1983- 84 appropriations bi 11 provides $ 735.9 M for state basic/ addi ti onal

aid to schools, a $ 43.6 M increase of the prior year's amount. State aid

for community colleges increased $ 3.5 M to a 1 eve1 of $ 43.5 M in FY 1983-

84.

In addition to the growth rate issue, H. B. 2022 also makes modifications

in the provisions governing long- term leases. The fol lowing provisions

were added:

1. School districts may:

- long- term lease for a period of 1 to 5 years - long- term lease for a period of 5 to 99 years

with voter approval

2 . Proceeds from the sale of school property are exempt from

the revenue control 1 imit ( RCL) and the capital outlay

revenue 1 imit ( CORL) for a period of 3 to 10 years.

I 3. Proceeds from long- term leases and rentals are exempt from

the RCL and the CORL indefinitely.

I 4. Individually or in any combination, the proceeds from the

sale o f school property, long- term lease and rental of

school property and a maintenance and operation ( M& O) I budget override cannot exceed 10% of the RCL. [ This final

provision was changed to 15% -- see H. B. 2018.1

I Finally, the bill also provides that the completion date of the block grant

cost study be delayed from January 1 , 1985 to January 1 , 7986 due to the

possible availability of federal funds to help pay for the study.

This bill is an emergency measure.

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4. Should the Legislature fail t o authorize the excess i n I expenditures of local revenues above the limitation, the

State Board of Education shall inform each school d i s t r i c t

on or before March 5 of the amount by which each d i s t r i c t I is t o reduce i t s expenditures of local revenues. The bi 11

prescribes a formula which would establish a uniform per-centage

rate by which school districts would have to

I reduce their expenditures of 1 oca 1 revenues.

-

5. Finally, the governing board- of each school d i s t r i c t on

I or before April 1 shall adopt a revised budget for the

current year not t o exceed the new budget limit established

by the reduction in expenditures of local revenues.

I H. B, 2036 - Chapter 214 ( Schools; county and state assistance)

This bi 11 clarifies reporting requirements re1 ating t o school finance.

The following provisions are designed t o improve the reporting system

I involved in the school finance structure:

1 . The county school superintendent shall certify i n writing t o

the board of supervisors the ? qualitation assistance from I the primary property tax rate needed for eac, h school d i s t r i c t .

This must be done no later than the third day prior t o the

dav the board of su~ ervisors is required to l2vy school dis-t

r j c t taxes.

-

2. By September 1 , the governing board shall f i l e with the

B county school superintendent an estimate of the amount of

PL8l- 874 monies i t is eligible t o receive. By June 1 , the

governing board must report t o the county school superin-

I tendent the exact amount of PL81- 874 monies i t received

during the current year.

I 3. By September 15, the county school superintendent shall

prepare and transmit to the superintendent of public

instruction an estimate of the revenues from sources

other than property taxes each school d i s t r i c t will

receive for the current year.

4. By September 15, the county treasurer will provide t o the

superintendent of pub1 ic instruction an estimate of the

proceeds from the levy for county equal i zation that will

go for equalization assistance for education and the I amount of equalization assistance for each school d i s t r i c t .

The actual amounts of equaliz