PREFILED JAN 10 2025 REFERENCE TITLE: EORP; appropriations; repayment State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session 2025 HB 2098 Introduced by Representative Livingston An Act amending sections 12-119.01, 12-120.31, 12-284.03, 22-281, 38-803.01 and 38-810, Arizona Revised Statutes; amending title 38, chapter 5, article 3, Arizona Revised Statutes, by adding section 38-824; repealing section 38-824, Arizona Revised Statutes; amending section 41-178, Arizona Revised Statutes; amending title 41, chapter 4, article 3, Arizona Revised Statutes, by adding section 41-727; amending section 42-5029, Arizona Revised Statutes; appropriating monies; relating to public retirement systems. (TEXT OF BILL BEGINS ON NEXT PAGE)
PREFILED JAN 10 2025
REFERENCE TITLE: EORP; appropriations; repayment
State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session 2025
HB 2098
Introduced by Representative Livingston
REFERENCE TITLE: EORP; appropriations; repayment
State of Arizona
House of Representatives
Fifty-seventh Legislature
First Regular Session
2025
HB 2098
Introduced by
Representative Livingston
An Act
amending sections 12-119.01, 12-120.31, 12-284.03, 22-281, 38-803.01 and 38-810, Arizona Revised Statutes; amending title 38, chapter 5, article 3, Arizona Revised Statutes, by adding section 38-824; repealing section 38-824, Arizona Revised Statutes; amending section 41-178, Arizona Revised Statutes; amending title 41, chapter 4, article 3, Arizona Revised Statutes, by adding section 41-727; amending section 42-5029, Arizona Revised Statutes; appropriating monies; relating to public retirement systems.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona: Section 1. Section 12-119.01, Arizona Revised Statutes, is amended to read: START_STATUTE12-119.01. Supreme court fees; distribution A. Except as otherwise provided by law, fees for the supreme court shall be established and classified as follows: Class Description Fee A Initial case filing fee Petitions for review and cross petitions for review $ 140.00 Direct appeals and cross appeal appellant 140.00 Special actions petitioner 140.00 B Subsequent case filing fee Intervenors direct appeals and special action $ 70.00 Direct appeals appellee 70.00 Special actions respondent 70.00 Response to petition for review 70.00 E Minimum clerk fee Certifications alone $ 17.00 Certificate of good standing Certificates 17.00 F Per page fee Copies each page $ .50 G Special fees New and duplicate certificates $ 35.00 B. The clerk of the supreme court shall deposit, pursuant to sections 35-146 and 35-147, all of the monies collected pursuant to subsection A of this section as follows: 1. 27.78 per cent percent in the judicial collection enhancement fund established by section 12-113. 2. Through June 30, 2025, 26.00 per cent percent with the state treasurer for transmission to the elected officials' retirement plan fund established by section 38-802. The monies shall be transmitted by the state treasurer to the fund public safety personnel retirement system's board's office for distribution pursuant to section 38-810. 3. Beginning July 1, 2025, 26.00 percent with the state treasurer for transmission to the department of administration for distribution pursuant to section 41-727. 3. 4. 46.22 per cent percent in the state general fund. C. The supreme court may increase the class A and B fees prescribed in subsection A of this section. END_STATUTE Sec. 2. Section 12-120.31, Arizona Revised Statutes, is amended to read: START_STATUTE12-120.31. Fees and costs; distribution A. Fees and costs in the court of appeals shall be the same as supreme court fees and costs pursuant to section 12-119.01. B. Fees charged by the court of appeals for electronic filing of documents and electronic access shall be the same amount as fees charged by the supreme court and are subject to the provisions of section 12-119.02. C. The court of appeals shall retain 8.36 per cent percent of all of the monies it collects monthly pursuant to subsection A of this section. The retained monies shall be used to improve, maintain and enhance the ability to collect and manage monies assessed or received by the court, to improve court automation and to improve case processing or the administration of justice. The clerk of the court of appeals shall submit a plan to the supreme court that the supreme court shall approve before the court spends the retained monies. D. Excluding the monies that are retained pursuant to subsection C of this section, the clerk of the court of appeals shall deposit, pursuant to sections 35-146 and 35-147, all monies collected pursuant to subsection A of this section as follows: 1. 19.42 per cent percent in the judicial collection enhancement fund established by section 12-113. 2. Through June 30, 2025, 26.00 per cent percent with the state treasurer for transmission to the elected officials' retirement plan fund established by section 38-802. The monies shall be transmitted by the state treasurer to the fund public safety personnel retirement system's board's office for distribution pursuant to section 38-810. 3. Beginning july 1, 2025, 26.00 percent with the state treasurer for transmission to the department of administration for distribution pursuant to section 41-727. 3. 4. 46.22 per cent percent in the state general fund. END_STATUTE Sec. 3. Section 12-284.03, Arizona Revised Statutes, is amended to read: START_STATUTE12-284.03. Distribution of fees A. Excluding the monies that are kept by the court pursuant to subsection B of this section, the county treasurer shall transmit, distribute or deposit all monies received from the clerk of the superior court pursuant to section 12-284, subsection K as follows: 1. 1.20 percent to the state treasurer for deposit in the resource center fund established by and for the purposes of section 41-2402, subsection G. 2. 8.18 percent to the state treasurer for deposit in the domestic violence services fund established by section 36-3002. 3. 1.78 percent to the state treasurer for deposit in the child abuse prevention fund established by section 8-550.01. 4. In the county law library fund established by section 12-305, either: (a) 7.02 percent if the county treasurer is serving in a county with a population of more than five hundred thousand persons. (b) 14.09 percent if the county treasurer is serving in a county with a population of five hundred thousand persons or less. 5. 0.32 percent to the state treasurer for deposit in the alternative dispute resolution fund established by section 12-135. 6. Through June 30, 2025, either of the following percentages to the elected officials' retirement plan fund established by section 38-802, either of the following percentages, which shall be distributed to the fund public safety personnel retirement system's board's office for distribution pursuant to section 38-810: (a) 21.91 percent if the county treasurer is serving in a county with a population of more than five hundred thousand persons. (b) 14.09 percent if the county treasurer is serving in a county with a population of five hundred thousand persons or less. 7. 17.62 percent to the state treasurer for deposit in the judicial collection enhancement fund established by section 12-113. 8. 0.24 percent to the state treasurer for deposit in the confidential intermediary and fiduciary fund established by section 8-135. 9. In the county general fund, the following percentages: (a) 28.81 percent if the county treasurer is serving in a county with a population of more than five hundred thousand persons. (b) 29.56 percent if the county treasurer is serving in a county with a population of five hundred thousand persons or less. 10. Through June 30, 2025, 6.00 percent to the elected officials' retirement plan, fund established by section 38-802 for the purpose of funding a portion of the employers' contributions required public safety personnel retirement system's board's office for distribution pursuant to section 38-810. 11. Beginning July 1, 2025, either of the following percentages to the department of administration for distribution pursuant to section 41-727: (a) 21.91 percent if the county treasurer is serving in a county with a population of more than five hundred thousand persons. (b) 14.09 percent if the county treasurer is serving in a county with a population of five hundred thousand persons or less. 12. Beginning July 1, 2025, 6.00 percent to the department of administration for distribution pursuant to section 41-727. B. 6.92 percent of the monies transmitted, distributed or deposited pursuant to subsection A of this section shall be kept and used by the court collecting the fees in the same manner as the seven dollars $7 of the time payment fee prescribed by section 12-116, subsection B. END_STATUTE Sec. 4. Section 22-281, Arizona Revised Statutes, is amended to read: START_STATUTE22-281. Fees and deposits A. Justices of the peace shall receive fees established and classified as follows in civil actions: Class Description Fee A Initial case filing fee Civil filing fees $ 73.00 B Subsequent case filing fee Civil filing fees defendant $ 40.00 C Initial case filing fee Forcible entry and detainer filings $ 35.00 Small claims filing 25.00 D Subsequent case filing fee Small claims answer $ 15.00 E Minimum clerk fee Document and transcript transfer on appeal $ 28.00 Certification of any documents 28.00 Issuance of writs 28.00 Filing any paper or performing any act for which a fee is not specifically prescribed 28.00 Subpoena (civil) 28.00 Research in locating a document 28.00 Seal a court file 28.00 Reopen a sealed court file 28.00 Record duplication 28.00 F Per page fee Copies of any documents per page $ 0.50 G Special fees Small claims service by mail $ 8.00 B. This section does not deprive the parties to the action of the privilege of depositing amounts with the justice, in addition to those set forth in this section, for use in connection with the payment of constable's and sheriff's fees for service of process, levying of writs and other services for which fees are otherwise provided by law. C. Excluding the monies that are kept by the court pursuant to subsection D of this section, justices of the peace shall transmit monthly to the county treasurer all monies collected pursuant to subsection A of this section. The county treasurer shall distribute or deposit all of the monies received pursuant to this subsection as follows: 1. To the state treasurer for deposit in the judicial collection enhancement fund established by section 12-113, in the following percentages: (a) 14.80 percent if the county treasurer is serving in a county with a population of more than five hundred thousand persons. (b) 16.23 percent if the county treasurer is serving in a county with a population of five hundred thousand persons or less. 2. To the state treasurer for deposit in the alternative dispute resolution fund established by section 12-135, in the following percentages: (a) 1.69 percent if the county treasurer is serving in a county with a population of more than five hundred thousand persons. (b) 1.89 percent if the county treasurer is serving in a county with a population of five hundred thousand persons or less. 3. Through June 30, 2025, either of the following percentages to the elected officials' retirement plan fund established by section 38-802, either of the following percentages, which shall be distributed to the fund public safety personnel retirement system's board's office for distribution pursuant to section 38-810: (a) 21.91 percent if the county treasurer is serving in a county with a population of more than five hundred thousand persons. (b) 14.09 percent if the county treasurer is serving in a county with a population of five hundred thousand persons or less. 4. To the county general fund, in the following percentages: (a) 49.95 percent if the county treasurer is serving in a county with a population of more than five hundred thousand persons. (b) 55.51 percent if the county treasurer is serving in a county with a population of five hundred thousand persons or less. 5. Through June 30, 2025, 6.00 percent to the elected officials' retirement plan, fund established by section 38-802 for the purpose of funding a portion of the employers' contributions required public safety personnel retirement system's board's office for distribution pursuant to section 38-810. 6. Beginning July 1, 2025, either of the following percentages to the department of administration for distribution pursuant to section 41-727: (a) 21.91 percent if the county treasurer is serving in a county with a population of more than five hundred thousand persons. (b) 14.09 percent if the county treasurer is serving in a county with a population of five hundred thousand persons or less. 7. Beginning July 1, 2025, 6.00 percent to the department of administration for distribution pursuant to section 41-727. D. In counties with a population of more than five hundred thousand persons, 5.65 percent of the monies transmitted pursuant to subsection C of this section shall be kept and used by the court collecting the fees in the same manner as the $7 of the time payment fee prescribed by section 12-116, subsection B. E. In counties with a population of five hundred thousand persons or less, 6.28 percent of the monies transmitted pursuant to subsection C of this section shall be kept and used by the court collecting the fees in the same manner as the $7 of the time payment fee prescribed by section 12-116, subsection B. F. The supreme court may increase the fees prescribed in subsection A of this section in an amount not to exceed the percent of change in the average consumer price index as published by the United States department of labor, bureau of labor statistics between that figure for the latest calendar year and the calendar year in which the last fee increase occurred.END_STATUTE Sec. 5. Section 38-803.01, Arizona Revised Statutes, is amended to read: START_STATUTE38-803.01. Qualified governmental excess benefit arrangement; definitions A. The board may establish a qualified governmental excess benefit arrangement for the sole purpose of enabling the board to continue to apply the same formula for determining benefits payable to all employees who are covered by the plan and whose benefits under the plan are limited by section 415 of the internal revenue code. B. The board shall administer the qualified governmental excess benefit arrangement. The board has full discretionary fiduciary authority to determine all questions arising in connection with the qualified governmental excess benefit arrangement, including its interpretation and any factual questions arising under the qualified governmental excess benefit arrangement. C. All members and retired members of the plan are eligible to participate in the qualified governmental excess benefit arrangement if their benefits under the plan would exceed the limitations imposed by section 415 of the internal revenue code. D. On or after the effective date of the qualified governmental excess benefit arrangement, the employer shall pay to each eligible member of the plan who retires on or after the effective date and to each retired member who retired before the effective date and that member's beneficiary, if required, a supplemental pension benefit equal to the amount by which the benefit that would have been payable under the plan, without regard to any provisions in the plan incorporating the limitation on benefits imposed by section 415 of the internal revenue code, exceeds the benefit actually payable taking into account the limitation imposed on the plan by section 415 of the internal revenue code. The board shall compute and pay the supplemental pension benefits under the same terms and conditions and to the same person as the benefits payable to or on account of a retired member under the plan. E. The employer shall not fund benefits payable under the qualified governmental excess benefit arrangement. The employer shall pay benefits payable under the qualified governmental excess benefit arrangement out of the general assets of the employer. For administrative purposes, the employer may establish a grantor trust for the benefit of eligible members. The employer shall be treated as grantor of the trust for purposes of section 677 of the internal revenue code. The rights of any person to receive benefits under the qualified governmental excess benefit arrangement are limited to those of a general creditor of the employer. F. The department of administration and the board shall coordinate to ensure that PAYMENTS and tax reporting are in accordance with federal tax requirements. G. The board shall provide all necessary information to the department of administration for the purposes of distributing monies pursuant to section 41-727. F. H. The terms and conditions contained in the plan, other than those relating to the benefit limitation imposed by section 415 of the internal revenue code, apply, unless the terms and conditions are inconsistent with the purpose of the qualified governmental excess benefit arrangement. G. I. For the purposes of this section: 1. "Internal revenue code" has the same meaning prescribed in section 42-1001. 2. "Qualified governmental excess benefit arrangement" means a portion of the plan if: (a) The portion is maintained solely to provide to members of the plan that part of a member's annual benefit that is otherwise payable under the terms of the plan and that exceeds the limitations imposed by section 415 of the internal revenue code. (b) Under that portion, a direct or indirect election to defer compensation is not provided at any time to the member. (c) Excess benefits are not paid from a trust that is a part of the plan unless the trust is maintained solely for the purpose of providing excess benefits. END_STATUTE Sec. 6. Section 38-810, Arizona Revised Statutes, is amended to read: START_STATUTE38-810. Contributions; appropriations A. Each member shall contribute to the fund an amount equal to the amount prescribed in subsection G of this section. Contributions of members shall be made by payroll deductions. Every member is deemed to consent to these deductions. Payment of a member's compensation, less these payroll deductions, constitutes a full and complete discharge and satisfaction of all claims and demands by the member relating to remuneration for the member's services rendered during the period covered by the payment, except with respect to the benefits provided under the plan. A member may not, under any circumstance, borrow from, take a loan against or remove contributions from the member's account before the termination of membership in the plan or the receipt of a pension. B. Through June 30, 2025, the board's office shall be credited monthly with monies collected pursuant to section 12-119.01, subsection B, paragraph 2, section 12-120.31, subsection D, paragraph 2, section 12-284.03, subsection A, paragraph paragraphs 6 and 10, section 22-281, subsection C, paragraph paragraphs 3 and 5 and section 41-178. Through June 30, 2025, the monies credited to the fund pursuant to this subsection shall be deposited in the fund on a monthly basis, and there shall be a complete accounting of the determination of these monies deposited in the fund. C. Beginning on July 1, 2018, as determined by actuarial valuations performed by the plan's actuary each employer shall make contributions on a level percent of compensation basis for all employees of the employer who are either members under this article, article 3.1 of this chapter or article 2 of this chapter pursuant to section 38-727, subsection B sufficient under the actuarial valuation to meet both the normal cost plus the actuarially determined amount required to amortize the unfunded accrued liability over a closed period of at least twenty and not more than thirty years that is established by the board taking into account the recommendation of the plan's actuary and the employer's contribution under the elected officials' defined contribution retirement system established pursuant to article 3.1 of this chapter and the employer's contribution under article 2 of this chapter for members who are eligible pursuant to section 38-727, subsection B. The employer also shall pay the amount required by section 38-797.05 for members under article 2 of this chapter who are eligible pursuant to section 38-727, subsection B and the amount required by article 3.2 of this chapter for members under article 3.1 of this chapter. The monies deposited in the fund pursuant to subsection B of this section shall be used to supplement the contributions required of all employers under the plan. The employer level percent compensation contribution that is paid pursuant to this subsection, less the amount contributed by the employer pursuant to section 38-833 and section 38-737 for members eligible pursuant to section 38-727, subsection B, shall not be used to pay for an increase in benefits that is otherwise payable to members but shall be used to meet the normal cost plus an amount to amortize the unfunded accrued liability. D. In any fiscal year, an employer's contribution to the plan in combination with member contributions may not be less than the actuarially determined normal cost for that fiscal year. After the close of any fiscal year, if the plan's actuary determines that the actuarial valuation of the fund contains excess valuation assets and is more than one hundred percent funded, the board shall account for fifty percent of the excess valuation assets in a stabilization reserve account. After the close of any fiscal year, if the plan's actuary determines that the actuarial valuation of the fund has a valuation asset deficiency and an unfunded actuarial accrued liability, the board shall use any valuation assets in the stabilization reserve account, to the extent available, to limit the decline in the fund's funding ratio to not more than two percent. E. The department of administration and the treasurer of each county and participating city and town shall transfer to the board the contributions provided for in subsections A and C of this section within ten working days after each payroll date. The state, county treasurers and clerks of the superior court shall transfer the monies credited under subsection B of this section to the board on or before the fifteenth day of each calendar month that follows the month in which the court fees were collected. Contributions and monies credited under subsection B of this section and transferred after these dates shall include a penalty equal to ten percent a year, compounded annually, for each day that the contributions or monies credited under subsection B of this section are late. Delinquent payments due under this subsection, together with interest charges as provided in this subsection and court costs, may be recovered by action in a court of competent jurisdiction against the person or persons responsible for the payments or, at the request of the board, may be deducted from any other monies, including excise revenue taxes, payable to a political subdivision by any department or agency of this state. Through June 30, 2025, if requested by the board, the state, county treasurers or clerks of the superior court shall transfer the monies credited under subsection B of this section, in an amount determined by the board, directly to the qualified governmental excess benefit arrangement established pursuant to section 38-803.01. F. The employer shall pay the member contributions required of members on account of compensation earned after August 7, 1985. The paid contributions shall be treated as employer contributions for the purpose of determining tax treatment under the United States internal revenue code. The effective date of the employer payment shall not be before the date the retirement plan has received notification from the United States internal revenue service that pursuant to section 414(h) of the United States internal revenue code the member contributions paid will not be included in gross income for income tax purposes until the paid contributions are distributed by refund or pension payments. The employer shall pay the member contributions from monies established and available in the retirement deduction account, which monies would otherwise have been designated as member contributions and paid to the retirement plan. Member contributions paid pursuant to this subsection shall be treated for all other purposes, in the same manner and to the same extent, as member contributions made before August 7, 1985. G. An elected official who became a member of the plan before July 20, 2011 shall contribute seven percent of the member's gross salary pursuant to subsection A of this section. The amount contributed pursuant to subsection A of this section by an elected official who became a member of the plan on or after July 20, 2011 is: 1. For fiscal year 2011-2012, ten percent of the member's gross salary. 2. For fiscal year 2012-2013, eleven and one-half percent of the member's gross salary. 3. For fiscal year 2013-2014 and each fiscal year thereafter, thirteen percent of the member's gross salary. H. For fiscal year 2011-2012 and each fiscal year thereafter, the amount of the member's contribution that exceeds seven percent of the member's compensation shall not be used to reduce the employer's contributions that are calculated pursuant to subsection C of this section. I. In fiscal years 2013-2014 through 2042-2043 2024-2025, the sum of $5,000,000 is appropriated in each fiscal year from the state general fund to the elected officials' retirement plan fund to supplement the normal cost plus an amount to amortize the unfunded accrued liability pursuant to subsection C of this section. Monies appropriated pursuant to this subsection shall not be used to pay for an increase in benefits that is otherwise payable to members and shall only be used as specified in this subsection. Monies appropriated pursuant to this subsection are exempt from the provisions of section 35-190 relating to lapsing of appropriations.END_STATUTE Sec. 7. Title 38, chapter 5, article 3, Arizona Revised Statutes, is amended by adding section 38-824, to read: START_STATUTE38-824. Repayment; local governments; pension liability; payment schedule; intergovernmental agreements; treasurer's notification requirements; withholding monies A. From and after June 30, 2025 through June 30, 2035, the following amounts shall be paid annually by the following cities, towns and counties to repay this state for the amounts paid in fiscal year 2024-2025 on the local governments' behalf to the elected officials' retirement plan for unfunded accrued liability: 1. Apache county $ 138,000 2. Cochise county $ 464,500 3. Coconino county $ 456,000 4. Gila county $ 134,900 5. Graham county $ 113,100 6. Greenlee county $ 49,300 7. La Paz county $ 61,500 8. Maricopa county $11,995,200 9. Mohave county $ 1,187,200 10. Navajo county $ 616,600 11. Pima county $ 4,052,900 12. Pinal county $ 1,828,200 13. Santa cruz county $ 122,200 14. Yavapai county $ 727,200 15. Yuma county $ 786,200 16. City of tucson $ 151,700 17. City of Safford $ 41,800 18. Town of marana $ 95,100 19. Town of Gilbert $ 133,300 20. Town of Sahuarita $ 38,200 21. City of phoenix $ 455,100 22. City of Surprise $ 159,800 23. City of San Luis $ 74,800 24. City of Scottsdale $ 137,100 25. City of Flagstaff $ 139,700 26. City of South Tucson $ 14,800 27. City of Tempe $ 196,600 28. City of Mesa $ 248,700 29. City of Glendale $ 188,600 30. City of Avondale $ 59,700 31. City of Apache Junction $ 59,500 32. City of Peoria $ 131,400 33. City of Tolleson $ 86,800 34. City of Globe $ 26,300 35. City of Chandler $ 196,900 36. City of Yuma $ 220,900 37. Town of Thatcher $ 26,000 B. not later than January 15 of each year, the state treasurer shall annually bill Each city, town and county specified in subsection A of this section the amount due. The state treasurer shall include in each billing statement the city's, town's or county's remaining payment schedule. C. Notwithstanding the repayment schedule and billing provisions prescribed in subsections A and B of this section, on request of a city, town or county specified in subsection A of this section, the state treasurer shall enter into an intergovernmental agreement with the city, town or county to establish an accelerated repayment schedule. Not later than January 15 of each year, the state treasurer shall bill the city, town or county for the amount prescribed in the intergovernmental agreement and may not bill the city, town or county pursuant to subsection B of this section. The intergovernmental agreement must include the following: 1. The total amount to be paid by the city, town or county to this state, which is equal to the amount prescribed for the city, town or county specified in subsection A of this section multiplied by ten. 2. The annual payment from the city, town or county to this state, which may not be less than the amount prescribed for the city, town or county specified in subsection A of this section. 3. The number and amount of annual payments due under the intergovernmental agreement. Annual payments shall begin from and after June 30, 2025 and be made in consecutive years. D. Payments made by a city, town or county to this state pursuant to an intergovernmental agreement entered into pursuant to subsection C of this section are payments required by a contractual long-term obligation under article IX, section 20, subsection 3, paragraph (d), subdivision (i), Constitution of Arizona, and are excluded from the city's, town's or county's expenditure limitation established pursuant to article IX, section 20, Constitution of Arizona. E. On entering into an intergovernmental agreement pursuant to subsection C of this section, the state treasurer shall report the following to the president of the senate, the speaker of the house of representatives, the chairpersons of the appropriations committees in the senate and the house of representatives, the joint legislative budget committee and the governor's office of strategic planning and budgeting: 1. The city, town or county that entered into an intergovernmental agreement. 2. The provisions of the intergovernmental agreement with that city, town or county as prescribed in subsection C of this section. F. If a city, town or county specified in subsection A of this section fails to pay the annual repayment amount as specified in subsection A of this section or in the intergovernmental agreement pursuant to subsection C of this section in full on or before March 15, the state treasurer shall withhold the amount owed from the distribution of monies to the affected city, town or county pursuant to section 42-5029 and continue to withhold monies until the entire annual repayment amount has been satisfied. All monies paid to the state treasurer or withheld by the state treasurer shall be deposited, pursuant to sections 35-146 and 35-147, in the state general fund.END_STATUTE Sec. 8. Delayed repeal Section 38-824, Arizona Revised Statutes, as added by this act, is repealed from and after June 30, 2036. Sec. 9. Section 41-178, Arizona Revised Statutes, is amended to read: START_STATUTE41-178. Distribution of notary bond fees The state treasurer shall transmit, distribute or deposit all monies received pursuant to section 41-126, subsection A, paragraphs 11 and 12 as follows: 1. 1.31 percent for deposit in the resource center fund established by and for the purposes of section 41-2402, subsection G. 2. 8.87 percent for deposit in the domestic violence services fund established by section 36-3002. 3. 1.93 percent for deposit in the child abuse prevention fund established by section 8-550.01. 4. 7.62 percent for proportional deposit in each county's law library fund established by section 12-305, based on the number of notaries commissioned per county. 5. 0.35 percent for deposit in the alternative dispute resolution fund established by section 12-135. 6. Through June 30, 2025, 23.79 percent for deposit in the elected officials' retirement plan fund established by section 38-802, which shall be distributed to the fund transmission to the public safety personnel retirement system's board's office for distribution pursuant to section 38-810. 7. Beginning July 1, 2025, 23.79 percent for transmission to the department of administration for distribution pursuant to section 41-727. 7. 8. 17.07 percent for deposit in the judicial collection enhancement fund established by section 12-113. 8. 9. 0.26 percent for deposit in the confidential intermediary and fiduciary fund established by section 8-135. 9. 10. 31.29 percent for deposit in the notary bond fund established by section 41-314. 10. 11. 7.51 percent shall be distributed to the county where the notary is commissioned in the same manner as the seven dollars $7 of the time payment fee prescribed by section 12-116, subsection B.END_STATUTE Sec. 10. Title 41, chapter 4, article 3, Arizona Revised Statutes, is amended by adding section 41-727, to read: START_STATUTE41-727. Court fees; distribution; definitions A. Beginning July 1, 2025, the department shall be credited monthly with monies collected pursuant to section 12-119.01, subsection B, paragraph 3, section 12-120.31, subsection D, paragraph 3, section 12-284.03, subsection A, paragraphs 11 and 12, section 22-281, subsection C, paragraphs 6 and 7 and section 41-178, paragraph 7. The department shall separately account for the monies collected pursuant to this subsection and shall distribute the monies pursuant to subsection B of this section. B. For fiscal year 2025-2026 and each fiscal year thereafter, the monies collected pursuant to subsection A of this section shall be distributed as follows: 1. As determined by the board, in amounts necessary to satisfy the qualified governmental excess benefit arrangement established pursuant to section 38-803.01. In distributing monies pursuant to this paragraph, the department may allocate monies to the board or to employers in order to comply with the requirements of section 38-803.01. 2. After distributing monies pursuant to paragraph 1 of this subsection, on or before June 30, the department shall transfer any remaining monies collected during a fiscal year to the state general fund. C. for the purposes of this section: 1. "Board" has the same meaning prescribed in section 38-801. 2. "Employer" has the same meaning prescribed in section 38-801. END_STATUTE Sec. 11. Section 42-5029, Arizona Revised Statutes, is amended to read: START_STATUTE42-5029. Remission and distribution of monies; withholding; definition A. The department shall deposit, pursuant to sections 35-146 and 35-147, all revenues collected under this article and articles 4, 5 and 8 of this chapter pursuant to section 42-1116, separately accounting for: 1. Payments of estimated tax under section 42-5014, subsection D. 2. Revenues collected pursuant to section 42-5070. 3. Revenues collected under this article and article 5 of this chapter from and after June 30, 2000 from sources located on Indian reservations in this state. 4. Revenues collected pursuant to section 42-5010, subsection G and section 42-5155, subsection D. 5. Revenues collected pursuant to section 42-5010.01 and section 42-5155, subsection E. 6. Revenues collected pursuant to section 42-5061 from a remote seller. B. The department shall credit payments of estimated tax to an estimated tax clearing account and each month shall transfer all monies in the estimated tax clearing account to a fund designated as the transaction privilege and severance tax clearing account. The department shall credit all other payments to the transaction privilege and severance tax clearing account, separately accounting for the monies designated as distribution base under sections 42-5010, 42-5164 and 42-5205. Each month the department shall report to the state treasurer the amount of monies collected pursuant to this article and articles 4, 5 and 8 of this chapter. C. On notification by the department, the state treasurer shall distribute the monies deposited in the transaction privilege and severance tax clearing account in the manner prescribed by this section and by sections 42-5164 and 42-5205, after deducting warrants drawn against the account pursuant to sections 42-1118 and 42-1254. D. Of the monies designated as distribution base, the department shall: 1. Pay twenty-five percent to the various incorporated municipalities in this state in proportion to their population to be used by the municipalities for any municipal purpose, except a municipality shall use monies paid from revenues separately accounted for pursuant to subsection A, paragraph 6 of this section and paid pursuant to this paragraph for public safety before any other municipal purpose. 2. Pay 38.08 percent to the counties in this state by averaging the following proportions: (a) The proportion that the population of each county bears to the total state population. (b) The proportion that the distribution base monies collected during the calendar month in each county under this article, section 42-5164, subsection B and section 42-5205, subsection B bear to the total distribution base monies collected under this article, section 42-5164, subsection B and section 42-5205, subsection B throughout the state for the calendar month. 3. Pay an additional 2.43 percent to the counties in this state as follows: (a) Average the following proportions: (i) The proportion that the assessed valuation used to determine secondary property taxes of each county, after deducting that part of the assessed valuation that is exempt from taxation at the beginning of the month for which the amount is to be paid, bears to the total assessed valuations used to determine secondary property taxes of all the counties after deducting that portion of the assessed valuations that is exempt from taxation at the beginning of the month for which the amount is to be paid. Property of a city or town that is not within or contiguous to the municipal corporate boundaries and from which water is or may be withdrawn or diverted and transported for use on other property is considered to be taxable property in the county for purposes of determining assessed valuation in the county under this item. (ii) The proportion that the distribution base monies collected during the calendar month in each county under this article, section 42-5164, subsection B and section 42-5205, subsection B bear to the total distribution base monies collected under this article, section 42-5164, subsection B and section 42-5205, subsection B throughout this state for the calendar month. (b) If the proportion computed under subdivision (a) of this paragraph for any county is greater than the proportion computed under paragraph 2 of this subsection, the department shall compute the difference between the amount distributed to that county under paragraph 2 of this subsection and the amount that would have been distributed under paragraph 2 of this subsection using the proportion computed under subdivision (a) of this paragraph and shall pay that difference to the county from the amount available for distribution under this paragraph. Any monies remaining after all payments under this subdivision shall be distributed among the counties according to the proportions computed under paragraph 2 of this subsection. 4. After any distributions required by sections 42-5030, 42-5030.01, 42-5031, 42-5032, 42-5032.01 and 42-5032.02, and after making any transfer to the water quality assurance revolving fund as required by section 49-282, subsection B, credit the remainder of the monies designated as distribution base to the state general fund. From this amount the legislature shall annually appropriate to: (a) The department of revenue, sufficient monies to administer and enforce this article and articles 5 and 8 of this chapter. (b) The department of economic security, monies to be used for the purposes stated in title 46, chapter 1. (c) The firearms safety and ranges fund established by section 17-273, $50,000 derived from the taxes collected from the retail classification pursuant to section 42-5061 for the current fiscal year. E. If approved by the qualified electors voting at a statewide general election, all monies collected pursuant to section 42-5010, subsection G and section 42-5155, subsection D shall be distributed each fiscal year pursuant to this subsection. The monies distributed pursuant to this subsection are in addition to any other appropriation, transfer or other allocation of public or private monies from any other source and shall not supplant, replace or cause a reduction in other school district, charter school, university or community college funding sources. The monies shall be distributed as follows: 1. If there are outstanding state school facilities revenue bonds pursuant to title 15, chapter 16, article 7, each month one-twelfth of the amount that is necessary to pay the fiscal year's debt service on outstanding state school improvement revenue bonds for the current fiscal year shall be transferred each month to the school improvement revenue bond debt service fund established by section 15-2084. The total amount of bonds for which these monies may be allocated for the payment of debt service shall not exceed a principal amount of eight hundred million dollars exclusive of refunding bonds and other refinancing obligations. 2. After any transfer of monies pursuant to paragraph 1 of this subsection, twelve per cent of the remaining monies collected during the preceding month shall be transferred to the technology and research initiative fund established by section 15-1648 to be distributed among the universities for the purpose of investment in technology and research-based initiatives. 3. After the transfer of monies pursuant to paragraph 1 of this subsection, three per cent of the remaining monies collected during the preceding month shall be transferred to the workforce development account established in each community college district pursuant to section 15-1472 for the purpose of investment in workforce development programs. 4. After transferring monies pursuant to paragraphs 1, 2 and 3 of this subsection, one-twelfth of the amount a community college that is owned, operated or chartered by a qualifying Indian tribe on its own Indian reservation would receive pursuant to section 15-1472, subsection D, paragraph 2 if it were a community college district shall be distributed each month to the treasurer or other designated depository of a qualifying Indian tribe. Monies distributed pursuant to this paragraph are for the exclusive purpose of providing support to one or more community colleges owned, operated or chartered by a qualifying Indian tribe and shall be used in a manner consistent with section 15-1472, subsection B. For the purposes of this paragraph, "qualifying Indian tribe" has the same meaning as defined in section 42-5031.01, subsection D. 5. After transferring monies pursuant to paragraphs 1, 2 and 3 of this subsection, one-twelfth of the following amounts shall be transferred each month to the department of education for the increased cost of basic state aid under section 15-971 due to added school days and associated teacher salary increases enacted in 2000: (a) In fiscal year 2001-2002, $15,305,900. (b) In fiscal year 2002-2003, $31,530,100. (c) In fiscal year 2003-2004, $48,727,700. (d) In fiscal year 2004-2005, $66,957,200. (e) In fiscal year 2005-2006 and each fiscal year thereafter, $86,280,500. 6. After transferring monies pursuant to paragraphs 1, 2 and 3 of this subsection, seven million eight hundred thousand dollars is appropriated each fiscal year, to be paid in monthly installments, to the department of education to be used for school safety as provided in section 15-154 and two hundred thousand dollars is appropriated each fiscal year, to be paid in monthly installments to the department of education to be used for the character education matching grant program as provided in section 15-154.01. 7. After transferring monies pursuant to paragraphs 1, 2 and 3 of this subsection, no more than seven million dollars may be appropriated by the legislature each fiscal year to the department of education to be used for accountability purposes as described in section 15-241 and title 15, chapter 9, article 8. 8. After transferring monies pursuant to paragraphs 1, 2 and 3 of this subsection, one million five hundred thousand dollars is appropriated each fiscal year, to be paid in monthly installments, to the failing schools tutoring fund established by section 15-241. 9. After transferring monies pursuant to paragraphs 1, 2 and 3 of this subsection, twenty-five million dollars shall be transferred each fiscal year to the state general fund to reimburse the general fund for the cost of the income tax credit allowed by section 43-1072.01. 10. After the payment of monies pursuant to paragraphs 1 through 9 of this subsection, the remaining monies collected during the preceding month shall be transferred to the classroom site fund established by section 15-977. The monies shall be allocated as follows in the manner prescribed by section 15-977: (a) Forty per cent shall be allocated for teacher compensation based on performance. (b) Twenty per cent shall be allocated for increases in teacher base compensation and employee related expenses. (c) Forty per cent shall be allocated for maintenance and operation purposes. F. The department shall credit the remainder of the monies in the transaction privilege and severance tax clearing account to the state general fund, subject to any distribution required by section 42-5030.01. G. Notwithstanding subsection D of this section, if a court of competent jurisdiction finally determines that tax monies distributed under this section were illegally collected under this article or articles 5 and 8 of this chapter and orders the monies to be refunded to the taxpayer, the department shall compute the amount of such monies that was distributed to each city, town and county under this section. Each city's, town's and county's proportionate share of the costs shall be based on the amount of the original tax payment each municipality and county received. Each month the state treasurer shall reduce the amount otherwise distributable to the city, town and county under this section by 1/36 of the total amount to be recovered from the city, town or county until the total amount has been recovered, but the monthly reduction for any city, town or county shall not exceed ten percent of the full monthly distribution to that entity. The reduction shall begin for the first calendar month after the final disposition of the case and shall continue until the total amount, including interest and costs, has been recovered. H. On receiving a certificate of default from the greater Arizona development authority pursuant to section 41-2257 or 41-2258 and to the extent not otherwise expressly prohibited by law, the state treasurer shall withhold from the next succeeding distribution of monies pursuant to this section due to the defaulting political subdivision the amount specified in the certificate of default and immediately deposit the amount withheld in the greater Arizona development authority revolving fund. The state treasurer shall continue to withhold and deposit the monies until the greater Arizona development authority certifies to the state treasurer that the default has been cured. In no event may the state treasurer withhold any amount that the defaulting political subdivision certifies to the state treasurer and the authority as being necessary to make any required deposits then due for the payment of principal and interest on bonds of the political subdivision that were issued before the date of the loan repayment agreement or bonds and that have been secured by a pledge of distributions made pursuant to this section. I. Except as provided by sections 42-5033 and 42-5033.01, the population of a county, city or town as determined by the most recent United States decennial census plus any revisions to the decennial census certified by the United States bureau of the census shall be used as the basis for apportioning monies pursuant to subsection D of this section. J. Except as otherwise provided by this subsection, on notice from the department of revenue pursuant to section 42-6010, subsection B, the state treasurer shall withhold from the distribution of monies pursuant to this section to the affected city or town the amount of the penalty for business location municipal tax incentives provided by the city or town to a business entity that locates a retail business facility in the city or town. The state treasurer shall continue to withhold monies pursuant to this subsection until the entire amount of the penalty has been withheld. The state treasurer shall credit any monies withheld pursuant to this subsection to the state general fund as provided by subsection D, paragraph 4 of this section. The state treasurer shall not withhold any amount that the city or town certifies to the department of revenue and the state treasurer as being necessary to make any required deposits or payments for debt service on bonds or other long-term obligations of the city or town that were issued or incurred before the location incentives provided by the city or town. K. On notice from the auditor general pursuant to section 9-626, subsection D, the state treasurer shall withhold from the distribution of monies pursuant to this section to the affected city the amount computed pursuant to section 9-626, subsection D. The state treasurer shall continue to withhold monies pursuant to this subsection until the entire amount specified in the notice has been withheld. The state treasurer shall credit any monies withheld pursuant to this subsection to the state general fund as provided by subsection D, paragraph 4 of this section. L. Except as otherwise provided by this subsection and section 38-824, subsection F, on notice from the attorney general pursuant to section 41-194.01, subsection B, paragraph 1 that an ordinance, regulation, order or other official action adopted or taken by the governing body of a county, city or town violates state law or the Constitution of Arizona, the state treasurer shall withhold the distribution of monies pursuant to this section to the affected county, city or town and shall continue to withhold monies pursuant to this subsection until the attorney general certifies to the state treasurer that the violation has been resolved. The state treasurer shall redistribute the monies withheld pursuant to this subsection among all other counties, cities and towns in proportion to their population as provided by subsection D of this section. The state treasurer shall not withhold any amount that the county, city or town certifies to the attorney general and the state treasurer as being necessary to make any required deposits or payments for debt service on bonds or other long-term obligations of the county, city or town that were issued or incurred before committing the violation. M. For the purposes of this section, "community college district" means a community college district that is established pursuant to sections 15-1402 and 15-1403 and that is a political subdivision of this state and, unless otherwise specified, includes a community college tuition financing district established pursuant to section 15-1409. END_STATUTE Sec. 12. Appropriation; elected officials' retirement plan; pension liability A. In addition to any other appropriations made in fiscal year 2024-2025, the sum of $604,013,100 is appropriated from the budget stabilization fund established by section 35-144, Arizona Revised Statutes, in fiscal year 2024-2025 to the elected officials' retirement plan fund established by section 38-802, Arizona Revised Statutes, to pay the unfunded accrued liability for the elected officials' retirement plan. B. The board of trustees of the public safety personnel retirement system shall account for the appropriation made in subsection A of this section in the June 30, 2025 actuarial valuation of the elected officials' retirement plan. The board shall account for the appropriation when calculating the employee contribution rates and the employer contribution rates pursuant to section 38-810, Arizona Revised Statutes, as amended by this act, during fiscal year 2025-2026. Sec. 13. Appropriation reductions; department of administration; fiscal year 2025-2026 A. The sum of ($3,000,000) is reduced from appropriations made from the state general fund in fiscal year 2025-2026 to the department of administration. This reduction shall be applied to monies the department of administration distributes to counties for required employer contributions to the elected officials' retirement plan. B. The sum of ($9,488,300) is reduced from appropriations made from the state general fund in fiscal year 2025-2026 to the judiciarysuperior court judges' compensation line item. C. The sum of ($3,115,900) is reduced from appropriations made from the state general fund in fiscal year 2025-2026 to the judiciarycourt of appeals as follows: 1. ($2,114,400) division one line item. 2. ($1,001,500) division two line item. D. The following sums are reduced from appropriations made from the state general fund in fiscal year 2025-2026 to the following agencies' operating lump sum appropriation line item: 1. Attorney general ($ 52,700) 2. Corporation commission ($232,800) 3. Superintendent of public instruction ($ 49,800) 4. Office of the governor ($ 55,600) 5. Judiciary supreme court ($844,600) 6. Legislature senate ($421,700) 7. Legislature house of representatives ($843,400) 8. State mine inspector ($ 29,300) 9. Department of state secretary of state ($ 41,000) 10. State treasurer ($ 41,000) Sec. 14. Emergency This act is an emergency measure that is necessary to preserve the public peace, health or safety and is operative immediately as provided by law.
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 12-119.01, Arizona Revised Statutes, is amended to read:
START_STATUTE12-119.01. Supreme court fees; distribution
A. Except as otherwise provided by law, fees for the supreme court shall be established and classified as follows:
Class Description Fee
A Initial case filing fee
Petitions for review and
cross petitions for
review $ 140.00
Direct appeals and cross
appeal appellant 140.00
Special actions petitioner 140.00
B Subsequent case filing fee
Intervenors direct appeals
and special action $ 70.00
Direct appeals appellee 70.00
Special actions respondent 70.00
Response to petition
for review 70.00
E Minimum clerk fee
Certifications alone $ 17.00
Certificate of good standing
Certificates 17.00
F Per page fee
Copies each page $ .50
G Special fees
New and duplicate certificates $ 35.00
B. The clerk of the supreme court shall deposit, pursuant to sections 35-146 and 35-147, all of the monies collected pursuant to subsection A of this section as follows:
1. 27.78 per cent percent in the judicial collection enhancement fund established by section 12-113.
2. Through June 30, 2025, 26.00 per cent percent with the state treasurer for transmission to the elected officials' retirement plan fund established by section 38-802. The monies shall be transmitted by the state treasurer to the fund public safety personnel retirement system's board's office for distribution pursuant to section 38-810.
3. Beginning July 1, 2025, 26.00 percent with the state treasurer for transmission to the department of administration for distribution pursuant to section 41-727.
3. 4. 46.22 per cent percent in the state general fund.
C. The supreme court may increase the class A and B fees prescribed in subsection A of this section. END_STATUTE
Sec. 2. Section 12-120.31, Arizona Revised Statutes, is amended to read:
START_STATUTE12-120.31. Fees and costs; distribution
A. Fees and costs in the court of appeals shall be the same as supreme court fees and costs pursuant to section 12-119.01.
B. Fees charged by the court of appeals for electronic filing of documents and electronic access shall be the same amount as fees charged by the supreme court and are subject to the provisions of section 12-119.02.
C. The court of appeals shall retain 8.36 per cent percent of all of the monies it collects monthly pursuant to subsection A of this section. The retained monies shall be used to improve, maintain and enhance the ability to collect and manage monies assessed or received by the court, to improve court automation and to improve case processing or the administration of justice. The clerk of the court of appeals shall submit a plan to the supreme court that the supreme court shall approve before the court spends the retained monies.
D. Excluding the monies that are retained pursuant to subsection C of this section, the clerk of the court of appeals shall deposit, pursuant to sections 35-146 and 35-147, all monies collected pursuant to subsection A of this section as follows:
1. 19.42 per cent percent in the judicial collection enhancement fund established by section 12-113.
2. Through June 30, 2025, 26.00 per cent percent with the state treasurer for transmission to the elected officials' retirement plan fund established by section 38-802. The monies shall be transmitted by the state treasurer to the fund public safety personnel retirement system's board's office for distribution pursuant to section 38-810.
3. Beginning july 1, 2025, 26.00 percent with the state treasurer for transmission to the department of administration for distribution pursuant to section 41-727.
3. 4. 46.22 per cent percent in the state general fund. END_STATUTE
Sec. 3. Section 12-284.03, Arizona Revised Statutes, is amended to read:
START_STATUTE12-284.03. Distribution of fees
A. Excluding the monies that are kept by the court pursuant to subsection B of this section, the county treasurer shall transmit, distribute or deposit all monies received from the clerk of the superior court pursuant to section 12-284, subsection K as follows:
1. 1.20 percent to the state treasurer for deposit in the resource center fund established by and for the purposes of section 41-2402, subsection G.
2. 8.18 percent to the state treasurer for deposit in the domestic violence services fund established by section 36-3002.
3. 1.78 percent to the state treasurer for deposit in the child abuse prevention fund established by section 8-550.01.
4. In the county law library fund established by section 12-305, either:
(a) 7.02 percent if the county treasurer is serving in a county with a population of more than five hundred thousand persons.
(b) 14.09 percent if the county treasurer is serving in a county with a population of five hundred thousand persons or less.
5. 0.32 percent to the state treasurer for deposit in the alternative dispute resolution fund established by section 12-135.
6. Through June 30, 2025, either of the following percentages to the elected officials' retirement plan fund established by section 38-802, either of the following percentages, which shall be distributed to the fund public safety personnel retirement system's board's office for distribution pursuant to section 38-810:
(a) 21.91 percent if the county treasurer is serving in a county with a population of more than five hundred thousand persons.
(b) 14.09 percent if the county treasurer is serving in a county with a population of five hundred thousand persons or less.
7. 17.62 percent to the state treasurer for deposit in the judicial collection enhancement fund established by section 12-113.
8. 0.24 percent to the state treasurer for deposit in the confidential intermediary and fiduciary fund established by section 8-135.
9. In the county general fund, the following percentages:
(a) 28.81 percent if the county treasurer is serving in a county with a population of more than five hundred thousand persons.
(b) 29.56 percent if the county treasurer is serving in a county with a population of five hundred thousand persons or less.
10. Through June 30, 2025, 6.00 percent to the elected officials' retirement plan, fund established by section 38-802 for the purpose of funding a portion of the employers' contributions required public safety personnel retirement system's board's office for distribution pursuant to section 38-810.
11. Beginning July 1, 2025, either of the following percentages to the department of administration for distribution pursuant to section 41-727:
(a) 21.91 percent if the county treasurer is serving in a county with a population of more than five hundred thousand persons.
(b) 14.09 percent if the county treasurer is serving in a county with a population of five hundred thousand persons or less.
12. Beginning July 1, 2025, 6.00 percent to the department of administration for distribution pursuant to section 41-727.
B. 6.92 percent of the monies transmitted, distributed or deposited pursuant to subsection A of this section shall be kept and used by the court collecting the fees in the same manner as the seven dollars $7 of the time payment fee prescribed by section 12-116, subsection B. END_STATUTE
Sec. 4. Section 22-281, Arizona Revised Statutes, is amended to read:
START_STATUTE22-281. Fees and deposits
A. Justices of the peace shall receive fees established and classified as follows in civil actions:
Class Description Fee
A Initial case filing fee
Civil filing fees $ 73.00
B Subsequent case filing fee
Civil filing fees defendant $ 40.00
C Initial case filing fee
Forcible entry and detainer filings $ 35.00
Small claims filing 25.00
D Subsequent case filing fee
Small claims answer $ 15.00
E Minimum clerk fee
Document and transcript transfer on appeal $ 28.00
Certification of any documents 28.00
Issuance of writs 28.00
Filing any paper or performing any act
for which a fee is not specifically
prescribed 28.00
Subpoena (civil) 28.00
Research in locating a document 28.00
Seal a court file 28.00
Reopen a sealed court file 28.00
Record duplication 28.00
F Per page fee
Copies of any documents per page $ 0.50
G Special fees
Small claims service by mail $ 8.00
B. This section does not deprive the parties to the action of the privilege of depositing amounts with the justice, in addition to those set forth in this section, for use in connection with the payment of constable's and sheriff's fees for service of process, levying of writs and other services for which fees are otherwise provided by law.
C. Excluding the monies that are kept by the court pursuant to subsection D of this section, justices of the peace shall transmit monthly to the county treasurer all monies collected pursuant to subsection A of this section. The county treasurer shall distribute or deposit all of the monies received pursuant to this subsection as follows:
1. To the state treasurer for deposit in the judicial collection enhancement fund established by section 12-113, in the following percentages:
(a) 14.80 percent if the county treasurer is serving in a county with a population of more than five hundred thousand persons.
(b) 16.23 percent if the county treasurer is serving in a county with a population of five hundred thousand persons or less.
2. To the state treasurer for deposit in the alternative dispute resolution fund established by section 12-135, in the following percentages:
(a) 1.69 percent if the county treasurer is serving in a county with a population of more than five hundred thousand persons.
(b) 1.89 percent if the county treasurer is serving in a county with a population of five hundred thousand persons or less.
3. Through June 30, 2025, either of the following percentages to the elected officials' retirement plan fund established by section 38-802, either of the following percentages, which shall be distributed to the fund public safety personnel retirement system's board's office for distribution pursuant to section 38-810:
(a) 21.91 percent if the county treasurer is serving in a county with a population of more than five hundred thousand persons.
(b) 14.09 percent if the county treasurer is serving in a county with a population of five hundred thousand persons or less.
4. To the county general fund, in the following percentages:
(a) 49.95 percent if the county treasurer is serving in a county with a population of more than five hundred thousand persons.
(b) 55.51 percent if the county treasurer is serving in a county with a population of five hundred thousand persons or less.
5. Through June 30, 2025, 6.00 percent to the elected officials' retirement plan, fund established by section 38-802 for the purpose of funding a portion of the employers' contributions required public safety personnel retirement system's board's office for distribution pursuant to section 38-810.
6. Beginning July 1, 2025, either of the following percentages to the department of administration for distribution pursuant to section 41-727:
(a) 21.91 percent if the county treasurer is serving in a county with a population of more than five hundred thousand persons.
(b) 14.09 percent if the county treasurer is serving in a county with a population of five hundred thousand persons or less.
7. Beginning July 1, 2025, 6.00 percent to the department of administration for distribution pursuant to section 41-727.
D. In counties with a population of more than five hundred thousand persons, 5.65 percent of the monies transmitted pursuant to subsection C of this section shall be kept and used by the court collecting the fees in the same manner as the $7 of the time payment fee prescribed by section 12-116, subsection B.
E. In counties with a population of five hundred thousand persons or less, 6.28 percent of the monies transmitted pursuant to subsection C of this section shall be kept and used by the court collecting the fees in the same manner as the $7 of the time payment fee prescribed by section 12-116, subsection B.
F. The supreme court may increase the fees prescribed in subsection A of this section in an amount not to exceed the percent of change in the average consumer price index as published by the United States department of labor, bureau of labor statistics between that figure for the latest calendar year and the calendar year in which the last fee increase occurred.END_STATUTE
Sec. 5. Section 38-803.01, Arizona Revised Statutes, is amended to read:
START_STATUTE38-803.01. Qualified governmental excess benefit arrangement; definitions
A. The board may establish a qualified governmental excess benefit arrangement for the sole purpose of enabling the board to continue to apply the same formula for determining benefits payable to all employees who are covered by the plan and whose benefits under the plan are limited by section 415 of the internal revenue code.
B. The board shall administer the qualified governmental excess benefit arrangement. The board has full discretionary fiduciary authority to determine all questions arising in connection with the qualified governmental excess benefit arrangement, including its interpretation and any factual questions arising under the qualified governmental excess benefit arrangement.
C. All members and retired members of the plan are eligible to participate in the qualified governmental excess benefit arrangement if their benefits under the plan would exceed the limitations imposed by section 415 of the internal revenue code.
D. On or after the effective date of the qualified governmental excess benefit arrangement, the employer shall pay to each eligible member of the plan who retires on or after the effective date and to each retired member who retired before the effective date and that member's beneficiary, if required, a supplemental pension benefit equal to the amount by which the benefit that would have been payable under the plan, without regard to any provisions in the plan incorporating the limitation on benefits imposed by section 415 of the internal revenue code, exceeds the benefit actually payable taking into account the limitation imposed on the plan by section 415 of the internal revenue code. The board shall compute and pay the supplemental pension benefits under the same terms and conditions and to the same person as the benefits payable to or on account of a retired member under the plan.
E. The employer shall not fund benefits payable under the qualified governmental excess benefit arrangement. The employer shall pay benefits payable under the qualified governmental excess benefit arrangement out of the general assets of the employer. For administrative purposes, the employer may establish a grantor trust for the benefit of eligible members. The employer shall be treated as grantor of the trust for purposes of section 677 of the internal revenue code. The rights of any person to receive benefits under the qualified governmental excess benefit arrangement are limited to those of a general creditor of the employer.
F. The department of administration and the board shall coordinate to ensure that PAYMENTS and tax reporting are in accordance with federal tax requirements.
G. The board shall provide all necessary information to the department of administration for the purposes of distributing monies pursuant to section 41-727.
F. H. The terms and conditions contained in the plan, other than those relating to the benefit limitation imposed by section 415 of the internal revenue code, apply, unless the terms and conditions are inconsistent with the purpose of the qualified governmental excess benefit arrangement.
G. I. For the purposes of this section:
1. "Internal revenue code" has the same meaning prescribed in section 42-1001.
2. "Qualified governmental excess benefit arrangement" means a portion of the plan if:
(a) The portion is maintained solely to provide to members of the plan that part of a member's annual benefit that is otherwise payable under the terms of the plan and that exceeds the limitations imposed by section 415 of the internal revenue code.
(b) Under that portion, a direct or indirect election to defer compensation is not provided at any time to the member.
(c) Excess benefits are not paid from a trust that is a part of the plan unless the trust is maintained solely for the purpose of providing excess benefits. END_STATUTE
Sec. 6. Section 38-810, Arizona Revised Statutes, is amended to read:
START_STATUTE38-810. Contributions; appropriations
A. Each member shall contribute to the fund an amount equal to the amount prescribed in subsection G of this section. Contributions of members shall be made by payroll deductions. Every member is deemed to consent to these deductions. Payment of a member's compensation, less these payroll deductions, constitutes a full and complete discharge and satisfaction of all claims and demands by the member relating to remuneration for the member's services rendered during the period covered by the payment, except with respect to the benefits provided under the plan. A member may not, under any circumstance, borrow from, take a loan against or remove contributions from the member's account before the termination of membership in the plan or the receipt of a pension.
B. Through June 30, 2025, the board's office shall be credited monthly with monies collected pursuant to section 12-119.01, subsection B, paragraph 2, section 12-120.31, subsection D, paragraph 2, section 12-284.03, subsection A, paragraph paragraphs 6 and 10, section 22-281, subsection C, paragraph paragraphs 3 and 5 and section 41-178. Through June 30, 2025, the monies credited to the fund pursuant to this subsection shall be deposited in the fund on a monthly basis, and there shall be a complete accounting of the determination of these monies deposited in the fund.
C. Beginning on July 1, 2018, as determined by actuarial valuations performed by the plan's actuary each employer shall make contributions on a level percent of compensation basis for all employees of the employer who are either members under this article, article 3.1 of this chapter or article 2 of this chapter pursuant to section 38-727, subsection B sufficient under the actuarial valuation to meet both the normal cost plus the actuarially determined amount required to amortize the unfunded accrued liability over a closed period of at least twenty and not more than thirty years that is established by the board taking into account the recommendation of the plan's actuary and the employer's contribution under the elected officials' defined contribution retirement system established pursuant to article 3.1 of this chapter and the employer's contribution under article 2 of this chapter for members who are eligible pursuant to section 38-727, subsection B. The employer also shall pay the amount required by section 38-797.05 for members under article 2 of this chapter who are eligible pursuant to section 38-727, subsection B and the amount required by article 3.2 of this chapter for members under article 3.1 of this chapter. The monies deposited in the fund pursuant to subsection B of this section shall be used to supplement the contributions required of all employers under the plan. The employer level percent compensation contribution that is paid pursuant to this subsection, less the amount contributed by the employer pursuant to section 38-833 and section 38-737 for members eligible pursuant to section 38-727, subsection B, shall not be used to pay for an increase in benefits that is otherwise payable to members but shall be used to meet the normal cost plus an amount to amortize the unfunded accrued liability.
D. In any fiscal year, an employer's contribution to the plan in combination with member contributions may not be less than the actuarially determined normal cost for that fiscal year. After the close of any fiscal year, if the plan's actuary determines that the actuarial valuation of the fund contains excess valuation assets and is more than one hundred percent funded, the board shall account for fifty percent of the excess valuation assets in a stabilization reserve account. After the close of any fiscal year, if the plan's actuary determines that the actuarial valuation of the fund has a valuation asset deficiency and an unfunded actuarial accrued liability, the board shall use any valuation assets in the stabilization reserve account, to the extent available, to limit the decline in the fund's funding ratio to not more than two percent.
E. The department of administration and the treasurer of each county and participating city and town shall transfer to the board the contributions provided for in subsections A and C of this section within ten working days after each payroll date. The state, county treasurers and clerks of the superior court shall transfer the monies credited under subsection B of this section to the board on or before the fifteenth day of each calendar month that follows the month in which the court fees were collected. Contributions and monies credited under subsection B of this section and transferred after these dates shall include a penalty equal to ten percent a year, compounded annually, for each day that the contributions or monies credited under subsection B of this section are late. Delinquent payments due under this subsection, together with interest charges as provided in this subsection and court costs, may be recovered by action in a court of competent jurisdiction against the person or persons responsible for the payments or, at the request of the board, may be deducted from any other monies, including excise revenue taxes, payable to a political subdivision by any department or agency of this state. Through June 30, 2025, if requested by the board, the state, county treasurers or clerks of the superior court shall transfer the monies credited under subsection B of this section, in an amount determined by the board, directly to the qualified governmental excess benefit arrangement established pursuant to section 38-803.01.
F. The employer shall pay the member contributions required of members on account of compensation earned after August 7, 1985. The paid contributions shall be treated as employer contributions for the purpose of determining tax treatment under the United States internal revenue code. The effective date of the employer payment shall not be before the date the retirement plan has received notification from the United States internal revenue service that pursuant to section 414(h) of the United States internal revenue code the member contributions paid will not be included in gross income for income tax purposes until the paid contributions are distributed by refund or pension payments. The employer shall pay the member contributions from monies established and available in the retirement deduction account, which monies would otherwise have been designated as member contributions and paid to the retirement plan. Member contributions paid pursuant to this subsection shall be treated for all other purposes, in the same manner and to the same extent, as member contributions made before August 7, 1985.
G. An elected official who became a member of the plan before July 20, 2011 shall contribute seven percent of the member's gross salary pursuant to subsection A of this section. The amount contributed pursuant to subsection A of this section by an elected official who became a member of the plan on or after July 20, 2011 is:
1. For fiscal year 2011-2012, ten percent of the member's gross salary.
2. For fiscal year 2012-2013, eleven and one-half percent of the member's gross salary.
3. For fiscal year 2013-2014 and each fiscal year thereafter, thirteen percent of the member's gross salary.
H. For fiscal year 2011-2012 and each fiscal year thereafter, the amount of the member's contribution that exceeds seven percent of the member's compensation shall not be used to reduce the employer's contributions that are calculated pursuant to subsection C of this section.
I. In fiscal years 2013-2014 through 2042-2043 2024-2025, the sum of $5,000,000 is appropriated in each fiscal year from the state general fund to the elected officials' retirement plan fund to supplement the normal cost plus an amount to amortize the unfunded accrued liability pursuant to subsection C of this section. Monies appropriated pursuant to this subsection shall not be used to pay for an increase in benefits that is otherwise payable to members and shall only be used as specified in this subsection. Monies appropriated pursuant to this subsection are exempt from the provisions of section 35-190 relating to lapsing of appropriations.END_STATUTE
Sec. 7. Title 38, chapter 5, article 3, Arizona Revised Statutes, is amended by adding section 38-824, to read:
START_STATUTE38-824. Repayment; local governments; pension liability; payment schedule; intergovernmental agreements; treasurer's notification requirements; withholding monies
A. From and after June 30, 2025 through June 30, 2035, the following amounts shall be paid annually by the following cities, towns and counties to repay this state for the amounts paid in fiscal year 2024-2025 on the local governments' behalf to the elected officials' retirement plan for unfunded accrued liability:
1. Apache county $ 138,000
2. Cochise county $ 464,500
3. Coconino county $ 456,000
4. Gila county $ 134,900
5. Graham county $ 113,100
6. Greenlee county $ 49,300
7. La Paz county $ 61,500
8. Maricopa county $11,995,200
9. Mohave county $ 1,187,200
10. Navajo county $ 616,600
11. Pima county $ 4,052,900
12. Pinal county $ 1,828,200
13. Santa cruz county $ 122,200
14. Yavapai county $ 727,200
15. Yuma county $ 786,200
16. City of tucson $ 151,700
17. City of Safford $ 41,800
18. Town of marana $ 95,100
19. Town of Gilbert $ 133,300
20. Town of Sahuarita $ 38,200
21. City of phoenix $ 455,100
22. City of Surprise $ 159,800
23. City of San Luis $ 74,800
24. City of Scottsdale $ 137,100
25. City of Flagstaff $ 139,700
26. City of South Tucson $ 14,800
27. City of Tempe $ 196,600
28. City of Mesa $ 248,700
29. City of Glendale $ 188,600
30. City of Avondale $ 59,700
31. City of Apache Junction $ 59,500
32. City of Peoria $ 131,400
33. City of Tolleson $ 86,800
34. City of Globe $ 26,300
35. City of Chandler $ 196,900
36. City of Yuma $ 220,900
37. Town of Thatcher $ 26,000
B. not later than January 15 of each year, the state treasurer shall annually bill Each city, town and county specified in subsection A of this section the amount due. The state treasurer shall include in each billing statement the city's, town's or county's remaining payment schedule.
C. Notwithstanding the repayment schedule and billing provisions prescribed in subsections A and B of this section, on request of a city, town or county specified in subsection A of this section, the state treasurer shall enter into an intergovernmental agreement with the city, town or county to establish an accelerated repayment schedule. Not later than January 15 of each year, the state treasurer shall bill the city, town or county for the amount prescribed in the intergovernmental agreement and may not bill the city, town or county pursuant to subsection B of this section. The intergovernmental agreement must include the following:
1. The total amount to be paid by the city, town or county to this state, which is equal to the amount prescribed for the city, town or county specified in subsection A of this section multiplied by ten.
2. The annual payment from the city, town or county to this state, which may not be less than the amount prescribed for the city, town or county specified in subsection A of this section.
3. The number and amount of annual payments due under the intergovernmental agreement. Annual payments shall begin from and after June 30, 2025 and be made in consecutive years.
D. Payments made by a city, town or county to this state pursuant to an intergovernmental agreement entered into pursuant to subsection C of this section are payments required by a contractual long-term obligation under article IX, section 20, subsection 3, paragraph (d), subdivision (i), Constitution of Arizona, and are excluded from the city's, town's or county's expenditure limitation established pursuant to article IX, section 20, Constitution of Arizona.
E. On entering into an intergovernmental agreement pursuant to subsection C of this section, the state treasurer shall report the following to the president of the senate, the speaker of the house of representatives, the chairpersons of the appropriations committees in the senate and the house of representatives, the joint legislative budget committee and the governor's office of strategic planning and budgeting:
1. The city, town or county that entered into an intergovernmental agreement.
2. The provisions of the intergovernmental agreement with that city, town or county as prescribed in subsection C of this section.
F. If a city, town or county specified in subsection A of this section fails to pay the annual repayment amount as specified in subsection A of this section or in the intergovernmental agreement pursuant to subsection C of this section in full on or before March 15, the state treasurer shall withhold the amount owed from the distribution of monies to the affected city, town or county pursuant to section 42-5029 and continue to withhold monies until the entire annual repayment amount has been satisfied. All monies paid to the state treasurer or withheld by the state treasurer shall be deposited, pursuant to sections 35-146 and 35-147, in the state general fund.END_STATUTE
Sec. 8. Delayed repeal
Section 38-824, Arizona Revised Statutes, as added by this act, is repealed from and after June 30, 2036.
Sec. 9. Section 41-178, Arizona Revised Statutes, is amended to read:
START_STATUTE41-178. Distribution of notary bond fees
The state treasurer shall transmit, distribute or deposit all monies received pursuant to section 41-126, subsection A, paragraphs 11 and 12 as follows:
1. 1.31 percent for deposit in the resource center fund established by and for the purposes of section 41-2402, subsection G.
2. 8.87 percent for deposit in the domestic violence services fund established by section 36-3002.
3. 1.93 percent for deposit in the child abuse prevention fund established by section 8-550.01.
4. 7.62 percent for proportional deposit in each county's law library fund established by section 12-305, based on the number of notaries commissioned per county.
5. 0.35 percent for deposit in the alternative dispute resolution fund established by section 12-135.
6. Through June 30, 2025, 23.79 percent for deposit in the elected officials' retirement plan fund established by section 38-802, which shall be distributed to the fund transmission to the public safety personnel retirement system's board's office for distribution pursuant to section 38-810.
7. Beginning July 1, 2025, 23.79 percent for transmission to the department of administration for distribution pursuant to section 41-727.
7. 8. 17.07 percent for deposit in the judicial collection enhancement fund established by section 12-113.
8. 9. 0.26 percent for deposit in the confidential intermediary and fiduciary fund established by section 8-135.
9. 10. 31.29 percent for deposit in the notary bond fund established by section 41-314.
10. 11. 7.51 percent shall be distributed to the county where the notary is commissioned in the same manner as the seven dollars $7 of the time payment fee prescribed by section 12-116, subsection B.END_STATUTE
Sec. 10. Title 41, chapter 4, article 3, Arizona Revised Statutes, is amended by adding section 41-727, to read:
START_STATUTE41-727. Court fees; distribution; definitions
A. Beginning July 1, 2025, the department shall be credited monthly with monies collected pursuant to section 12-119.01, subsection B, paragraph 3, section 12-120.31, subsection D, paragraph 3, section 12-284.03, subsection A, paragraphs 11 and 12, section 22-281, subsection C, paragraphs 6 and 7 and section 41-178, paragraph 7. The department shall separately account for the monies collected pursuant to this subsection and shall distribute the monies pursuant to subsection B of this section.
B. For fiscal year 2025-2026 and each fiscal year thereafter, the monies collected pursuant to subsection A of this section shall be distributed as follows:
1. As determined by the board, in amounts necessary to satisfy the qualified governmental excess benefit arrangement established pursuant to section 38-803.01. In distributing monies pursuant to this paragraph, the department may allocate monies to the board or to employers in order to comply with the requirements of section 38-803.01.
2. After distributing monies pursuant to paragraph 1 of this subsection, on or before June 30, the department shall transfer any remaining monies collected during a fiscal year to the state general fund.
C. for the purposes of this section:
1. "Board" has the same meaning prescribed in section 38-801.
2. "Employer" has the same meaning prescribed in section 38-801. END_STATUTE
Sec. 11. Section 42-5029, Arizona Revised Statutes, is amended to read:
START_STATUTE42-5029. Remission and distribution of monies; withholding; definition
A. The department shall deposit, pursuant to sections 35-146 and 35-147, all revenues collected under this article and articles 4, 5 and 8 of this chapter pursuant to section 42-1116, separately accounting for:
1. Payments of estimated tax under section 42-5014, subsection D.
2. Revenues collected pursuant to section 42-5070.
3. Revenues collected under this article and article 5 of this chapter from and after June 30, 2000 from sources located on Indian reservations in this state.
4. Revenues collected pursuant to section 42-5010, subsection G and section 42-5155, subsection D.
5. Revenues collected pursuant to section 42-5010.01 and section 42-5155, subsection E.
6. Revenues collected pursuant to section 42-5061 from a remote seller.
B. The department shall credit payments of estimated tax to an estimated tax clearing account and each month shall transfer all monies in the estimated tax clearing account to a fund designated as the transaction privilege and severance tax clearing account. The department shall credit all other payments to the transaction privilege and severance tax clearing account, separately accounting for the monies designated as distribution base under sections 42-5010, 42-5164 and 42-5205. Each month the department shall report to the state treasurer the amount of monies collected pursuant to this article and articles 4, 5 and 8 of this chapter.
C. On notification by the department, the state treasurer shall distribute the monies deposited in the transaction privilege and severance tax clearing account in the manner prescribed by this section and by sections 42-5164 and 42-5205, after deducting warrants drawn against the account pursuant to sections 42-1118 and 42-1254.
D. Of the monies designated as distribution base, the department shall:
1. Pay twenty-five percent to the various incorporated municipalities in this state in proportion to their population to be used by the municipalities for any municipal purpose, except a municipality shall use monies paid from revenues separately accounted for pursuant to subsection A, paragraph 6 of this section and paid pursuant to this paragraph for public safety before any other municipal purpose.
2. Pay 38.08 percent to the counties in this state by averaging the following proportions:
(a) The proportion that the population of each county bears to the total state population.
(b) The proportion that the distribution base monies collected during the calendar month in each county under this article, section 42-5164, subsection B and section 42-5205, subsection B bear to the total distribution base monies collected under this article, section 42-5164, subsection B and section 42-5205, subsection B throughout the state for the calendar month.
3. Pay an additional 2.43 percent to the counties in this state as follows:
(a) Average the following proportions:
(i) The proportion that the assessed valuation used to determine secondary property taxes of each county, after deducting that part of the assessed valuation that is exempt from taxation at the beginning of the month for which the amount is to be paid, bears to the total assessed valuations used to determine secondary property taxes of all the counties after deducting that portion of the assessed valuations that is exempt from taxation at the beginning of the month for which the amount is to be paid. Property of a city or town that is not within or contiguous to the municipal corporate boundaries and from which water is or may be withdrawn or diverted and transported for use on other property is considered to be taxable property in the county for purposes of determining assessed valuation in the county under this item.
(ii) The proportion that the distribution base monies collected during the calendar month in each county under this article, section 42-5164, subsection B and section 42-5205, subsection B bear to the total distribution base monies collected under this article, section 42-5164, subsection B and section 42-5205, subsection B throughout this state for the calendar month.
(b) If the proportion computed under subdivision (a) of this paragraph for any county is greater than the proportion computed under paragraph 2 of this subsection, the department shall compute the difference between the amount distributed to that county under paragraph 2 of this subsection and the amount that would have been distributed under paragraph 2 of this subsection using the proportion computed under subdivision (a) of this paragraph and shall pay that difference to the county from the amount available for distribution under this paragraph. Any monies remaining after all payments under this subdivision shall be distributed among the counties according to the proportions computed under paragraph 2 of this subsection.
4. After any distributions required by sections 42-5030, 42-5030.01, 42-5031, 42-5032, 42-5032.01 and 42-5032.02, and after making any transfer to the water quality assurance revolving fund as required by section 49-282, subsection B, credit the remainder of the monies designated as distribution base to the state general fund. From this amount the legislature shall annually appropriate to:
(a) The department of revenue, sufficient monies to administer and enforce this article and articles 5 and 8 of this chapter.
(b) The department of economic security, monies to be used for the purposes stated in title 46, chapter 1.
(c) The firearms safety and ranges fund established by section 17-273, $50,000 derived from the taxes collected from the retail classification pursuant to section 42-5061 for the current fiscal year.
E. If approved by the qualified electors voting at a statewide general election, all monies collected pursuant to section 42-5010, subsection G and section 42-5155, subsection D shall be distributed each fiscal year pursuant to this subsection. The monies distributed pursuant to this subsection are in addition to any other appropriation, transfer or other allocation of public or private monies from any other source and shall not supplant, replace or cause a reduction in other school district, charter school, university or community college funding sources. The monies shall be distributed as follows:
1. If there are outstanding state school facilities revenue bonds pursuant to title 15, chapter 16, article 7, each month one-twelfth of the amount that is necessary to pay the fiscal year's debt service on outstanding state school improvement revenue bonds for the current fiscal year shall be transferred each month to the school improvement revenue bond debt service fund established by section 15-2084. The total amount of bonds for which these monies may be allocated for the payment of debt service shall not exceed a principal amount of eight hundred million dollars exclusive of refunding bonds and other refinancing obligations.
2. After any transfer of monies pursuant to paragraph 1 of this subsection, twelve per cent of the remaining monies collected during the preceding month shall be transferred to the technology and research initiative fund established by section 15-1648 to be distributed among the universities for the purpose of investment in technology and research-based initiatives.
3. After the transfer of monies pursuant to paragraph 1 of this subsection, three per cent of the remaining monies collected during the preceding month shall be transferred to the workforce development account established in each community college district pursuant to section 15-1472 for the purpose of investment in workforce development programs.
4. After transferring monies pursuant to paragraphs 1, 2 and 3 of this subsection, one-twelfth of the amount a community college that is owned, operated or chartered by a qualifying Indian tribe on its own Indian reservation would receive pursuant to section 15-1472, subsection D, paragraph 2 if it were a community college district shall be distributed each month to the treasurer or other designated depository of a qualifying Indian tribe. Monies distributed pursuant to this paragraph are for the exclusive purpose of providing support to one or more community colleges owned, operated or chartered by a qualifying Indian tribe and shall be used in a manner consistent with section 15-1472, subsection B. For the purposes of this paragraph, "qualifying Indian tribe" has the same meaning as defined in section 42-5031.01, subsection D.
5. After transferring monies pursuant to paragraphs 1, 2 and 3 of this subsection, one-twelfth of the following amounts shall be transferred each month to the department of education for the increased cost of basic state aid under section 15-971 due to added school days and associated teacher salary increases enacted in 2000:
(a) In fiscal year 2001-2002, $15,305,900.
(b) In fiscal year 2002-2003, $31,530,100.
(c) In fiscal year 2003-2004, $48,727,700.
(d) In fiscal year 2004-2005, $66,957,200.
(e) In fiscal year 2005-2006 and each fiscal year thereafter, $86,280,500.
6. After transferring monies pursuant to paragraphs 1, 2 and 3 of this subsection, seven million eight hundred thousand dollars is appropriated each fiscal year, to be paid in monthly installments, to the department of education to be used for school safety as provided in section 15-154 and two hundred thousand dollars is appropriated each fiscal year, to be paid in monthly installments to the department of education to be used for the character education matching grant program as provided in section 15-154.01.
7. After transferring monies pursuant to paragraphs 1, 2 and 3 of this subsection, no more than seven million dollars may be appropriated by the legislature each fiscal year to the department of education to be used for accountability purposes as described in section 15-241 and title 15, chapter 9, article 8.
8. After transferring monies pursuant to paragraphs 1, 2 and 3 of this subsection, one million five hundred thousand dollars is appropriated each fiscal year, to be paid in monthly installments, to the failing schools tutoring fund established by section 15-241.
9. After transferring monies pursuant to paragraphs 1, 2 and 3 of this subsection, twenty-five million dollars shall be transferred each fiscal year to the state general fund to reimburse the general fund for the cost of the income tax credit allowed by section 43-1072.01.
10. After the payment of monies pursuant to paragraphs 1 through 9 of this subsection, the remaining monies collected during the preceding month shall be transferred to the classroom site fund established by section 15-977. The monies shall be allocated as follows in the manner prescribed by section 15-977:
(a) Forty per cent shall be allocated for teacher compensation based on performance.
(b) Twenty per cent shall be allocated for increases in teacher base compensation and employee related expenses.
(c) Forty per cent shall be allocated for maintenance and operation purposes.
F. The department shall credit the remainder of the monies in the transaction privilege and severance tax clearing account to the state general fund, subject to any distribution required by section 42-5030.01.
G. Notwithstanding subsection D of this section, if a court of competent jurisdiction finally determines that tax monies distributed under this section were illegally collected under this article or articles 5 and 8 of this chapter and orders the monies to be refunded to the taxpayer, the department shall compute the amount of such monies that was distributed to each city, town and county under this section. Each city's, town's and county's proportionate share of the costs shall be based on the amount of the original tax payment each municipality and county received. Each month the state treasurer shall reduce the amount otherwise distributable to the city, town and county under this section by 1/36 of the total amount to be recovered from the city, town or county until the total amount has been recovered, but the monthly reduction for any city, town or county shall not exceed ten percent of the full monthly distribution to that entity. The reduction shall begin for the first calendar month after the final disposition of the case and shall continue until the total amount, including interest and costs, has been recovered.
H. On receiving a certificate of default from the greater Arizona development authority pursuant to section 41-2257 or 41-2258 and to the extent not otherwise expressly prohibited by law, the state treasurer shall withhold from the next succeeding distribution of monies pursuant to this section due to the defaulting political subdivision the amount specified in the certificate of default and immediately deposit the amount withheld in the greater Arizona development authority revolving fund. The state treasurer shall continue to withhold and deposit the monies until the greater Arizona development authority certifies to the state treasurer that the default has been cured. In no event may the state treasurer withhold any amount that the defaulting political subdivision certifies to the state treasurer and the authority as being necessary to make any required deposits then due for the payment of principal and interest on bonds of the political subdivision that were issued before the date of the loan repayment agreement or bonds and that have been secured by a pledge of distributions made pursuant to this section.
I. Except as provided by sections 42-5033 and 42-5033.01, the population of a county, city or town as determined by the most recent United States decennial census plus any revisions to the decennial census certified by the United States bureau of the census shall be used as the basis for apportioning monies pursuant to subsection D of this section.
J. Except as otherwise provided by this subsection, on notice from the department of revenue pursuant to section 42-6010, subsection B, the state treasurer shall withhold from the distribution of monies pursuant to this section to the affected city or town the amount of the penalty for business location municipal tax incentives provided by the city or town to a business entity that locates a retail business facility in the city or town. The state treasurer shall continue to withhold monies pursuant to this subsection until the entire amount of the penalty has been withheld. The state treasurer shall credit any monies withheld pursuant to this subsection to the state general fund as provided by subsection D, paragraph 4 of this section. The state treasurer shall not withhold any amount that the city or town certifies to the department of revenue and the state treasurer as being necessary to make any required deposits or payments for debt service on bonds or other long-term obligations of the city or town that were issued or incurred before the location incentives provided by the city or town.
K. On notice from the auditor general pursuant to section 9-626, subsection D, the state treasurer shall withhold from the distribution of monies pursuant to this section to the affected city the amount computed pursuant to section 9-626, subsection D. The state treasurer shall continue to withhold monies pursuant to this subsection until the entire amount specified in the notice has been withheld. The state treasurer shall credit any monies withheld pursuant to this subsection to the state general fund as provided by subsection D, paragraph 4 of this section.
L. Except as otherwise provided by this subsection and section 38-824, subsection F, on notice from the attorney general pursuant to section 41-194.01, subsection B, paragraph 1 that an ordinance, regulation, order or other official action adopted or taken by the governing body of a county, city or town violates state law or the Constitution of Arizona, the state treasurer shall withhold the distribution of monies pursuant to this section to the affected county, city or town and shall continue to withhold monies pursuant to this subsection until the attorney general certifies to the state treasurer that the violation has been resolved. The state treasurer shall redistribute the monies withheld pursuant to this subsection among all other counties, cities and towns in proportion to their population as provided by subsection D of this section. The state treasurer shall not withhold any amount that the county, city or town certifies to the attorney general and the state treasurer as being necessary to make any required deposits or payments for debt service on bonds or other long-term obligations of the county, city or town that were issued or incurred before committing the violation.
M. For the purposes of this section, "community college district" means a community college district that is established pursuant to sections 15-1402 and 15-1403 and that is a political subdivision of this state and, unless otherwise specified, includes a community college tuition financing district established pursuant to section 15-1409. END_STATUTE
Sec. 12. Appropriation; elected officials' retirement plan; pension liability
A. In addition to any other appropriations made in fiscal year 2024-2025, the sum of $604,013,100 is appropriated from the budget stabilization fund established by section 35-144, Arizona Revised Statutes, in fiscal year 2024-2025 to the elected officials' retirement plan fund established by section 38-802, Arizona Revised Statutes, to pay the unfunded accrued liability for the elected officials' retirement plan.
B. The board of trustees of the public safety personnel retirement system shall account for the appropriation made in subsection A of this section in the June 30, 2025 actuarial valuation of the elected officials' retirement plan. The board shall account for the appropriation when calculating the employee contribution rates and the employer contribution rates pursuant to section 38-810, Arizona Revised Statutes, as amended by this act, during fiscal year 2025-2026.
Sec. 13. Appropriation reductions; department of administration; fiscal year 2025-2026
A. The sum of ($3,000,000) is reduced from appropriations made from the state general fund in fiscal year 2025-2026 to the department of administration. This reduction shall be applied to monies the department of administration distributes to counties for required employer contributions to the elected officials' retirement plan.
B. The sum of ($9,488,300) is reduced from appropriations made from the state general fund in fiscal year 2025-2026 to the judiciarysuperior court judges' compensation line item.
C. The sum of ($3,115,900) is reduced from appropriations made from the state general fund in fiscal year 2025-2026 to the judiciarycourt of appeals as follows:
1. ($2,114,400) division one line item.
2. ($1,001,500) division two line item.
D. The following sums are reduced from appropriations made from the state general fund in fiscal year 2025-2026 to the following agencies' operating lump sum appropriation line item:
1. Attorney general ($ 52,700)
2. Corporation commission ($232,800)
3. Superintendent of public instruction ($ 49,800)
4. Office of the governor ($ 55,600)
5. Judiciary supreme court ($844,600)
6. Legislature senate ($421,700)
7. Legislature house of representatives ($843,400)
8. State mine inspector ($ 29,300)
9. Department of state secretary of state ($ 41,000)
10. State treasurer ($ 41,000)
Sec. 14. Emergency
This act is an emergency measure that is necessary to preserve the public peace, health or safety and is operative immediately as provided by law.