Assigned to APPROP AS PASSED BY COW
ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
AMENDED
FACT SHEET FOR H.B. 2317
appropriation; border fence construction
(NOW: revenue distribution; border security)
Purpose
Requires the State Treasurer, beginning the month following the general effective date, to
distribute $335,000,000 proportionately for each month remaining in the fiscal year from the
portion of the transaction privilege tax (TPT) revenues not designated as the distribution base to
the Border Security Fund (Fund).
Background
The Fund consists of legislative appropriations, gifts, grants and other donations and is
administered by the Arizona Department of Emergency and Military Affairs (DEMA). Fund
monies may be used for: 1) preventing human trafficking; 2) preventing the entry into the United
States of illegal aliens, terrorists, instruments of terrorism, contraband, narcotics and controlled
substances; 3) planning, designing, constructing and maintaining transportation, technology and
commercial vehicle inspection infrastructure near the international border; 4) clearing
nonindigenous plants; 5) administering and managing the construction and maintenance of a
physical border fence; 6) awarding grants to counties to provide housing in secure facilities; and
7) awarding grants to counties for prosecuting individuals that commit any of the outlined crimes
(A.R.S. § 26-105).
In FY 2021, $55,000,000 was appropriated from the state General Fund (state GF) to the
Fund (JLBC).
H.B. 2317 distributes $335,000,000 of TPT revenues to the Fund.
Provisions
1. Requires the State Treasurer, beginning the month following the general effective date, to
distribute $335,000,000 proportionately for each month remaining in the fiscal year from the
portion of the TPT revenues not designated as the distribution base to the Fund.
2. Requires DEMA to use the monies to construct and maintain a physical border fence, purchase
or install border security technologies, including cameras, sensors, drones and software, and
pay associated administrative costs.
3. Requires DEMA to use existing infrastructure and fence materials for the construction of the
physical border fence when feasible. FACT SHEET – Amended
H.B. 2317
Page 2
4. Requires DEMA, by July 1, 2023, to report to the Joint Legislative Budget Committee (JLBC)
on the use of existing infrastructure and fence materials for the construction of the physical
border fence.
5. Requires DEMA, in consultation with the Arizona Department of Homeland Security and
Department of Public Safety, to submit quarterly reports to JLBC on the use of the monies.
6. Declares the Legislature's intent that the TPT distributions not impact the portion that cities,
towns and counties receive.
7. Becomes effective on the general effective date.
Amendments Adopted by Committee of the Whole
1. Removes the $150,000,000 appropriation from the state GF in FY 2023 to the Fund.
2. Requires the State Treasurer to distribute $335,000,000 in TPT revenues to the Fund.
3. Requires DEMA to use the monies to construct and maintain a physical border fence and
purchase and install border security technologies.
4. Requires DEMA to report to JLBC on the use of existing infrastructure and the use of the
monies.
5. Declares the Legislature's intent that the TPT distribution not impact the portion that cities,
towns and counties receive.
6. Makes technical and conforming changes.
House Action Senate Action
MAPS 1/31/22 DP 8-7-0-0 APPROP 3/15/22 DP 6-4-0
APPROP 2/2/22 DP 8-5-0-0
3
rd
Read 2/24/22 31-28-1
Prepared by Senate Research
July 5, 2022
LMM/IJ/slp