ASRS 2014 Bill Tracker
51st Legislature - 2nd Regular Session, 2014 Thursday, Jul 19 2018 6:40 AM
Posted Calendars and Committee Hearings
No hearings, calendars, or amendments posted.


Bills That Passed
Bill Summaries
H2039: CHARTER SCHOOLS; HIGHER EDUCATION SPONSORS Questions/Comments: nicholasp@azasrs.gov

The list of charter schools eligible to participate in the Arizona State Retirement System and designated as political subdivisions is expanded to include charter schools sponsored by universities, community college districts and groups of community college districts. Retroactive to July 1, 2011. AS SIGNED BY GOVERNOR.

First sponsor: Rep. Goodale


 

General Comments (all lists):

HB 2039

Provisions

  • Allows a charter schools who obtain their charter through a university to become members of the ASRS retroactive to July 1, 2011.

 

H2039 Daily History  Date Action
CHARTER SCHOOLS; HIGHER EDUCATION SPONSORS 4/16 signed by governor. Chap. 42, Laws 2014.
CHARTER SCHOOLS; HIGHER EDUCATION SPONSORS 4/15 House concurred in Senate amendments and passed on final reading 60-0; ready for governor.
CHARTER SCHOOLS; HIGHER EDUCATION SPONSORS 4/8 passed Senate 26-0; ready for House action on Senate amendments.
CHARTER SCHOOLS; HIGHER EDUCATION SPONSORS 4/8 Senate COW approved with amend #4390.
CHARTER SCHOOLS; HIGHER EDUCATION SPONSORS 3/17 from Senate rules okay.
CHARTER SCHOOLS; HIGHER EDUCATION SPONSORS 3/6 from Senate fin do pass.
CHARTER SCHOOLS; HIGHER EDUCATION SPONSORS 3/3 from Senate educ with amend #4390.
CHARTER SCHOOLS; HIGHER EDUCATION SPONSORS 2/27 Senate educ amended; report awaited.
CHARTER SCHOOLS; HIGHER EDUCATION SPONSORS 2/18 referred to Senate educ, fin.
CHARTER SCHOOLS; HIGHER EDUCATION SPONSORS 2/10 passed House 59-0; ready for Senate.
CHARTER SCHOOLS; HIGHER EDUCATION SPONSORS 2/4 from House rules okay.
CHARTER SCHOOLS; HIGHER EDUCATION SPONSORS 2/3 to House consent calendar.
CHARTER SCHOOLS; HIGHER EDUCATION SPONSORS 1/28 from House educ do pass.
CHARTER SCHOOLS; HIGHER EDUCATION SPONSORS 1/15 referred to House educ.
H2050: ASRS MEMBERSHIP; SECTION 218 REQS Questions/Comments: nicholasp@azasrs.gov

Eliminates the Arizona State Retirement System (ASRS) eligibility requirement that an employee must be covered by the state's section 218 agreement with the federal Social Security Administration. Repeals the ASRS defined contribution plan established by Laws 2013, Chapter 216. An employee who is participating in the plan must discontinue employee contributions to the plan and the long-term disability plan on the effective date of this legislation. At the employee's election, ASRS must either distribute the balance of the employee's account or transfer it to another eligible plan. An employee who is receiving benefits under the plan may continue to receive those benefits until the earliest of a list of specified conditions is met. ASRS employers are required to enroll as "eligible employee" (defined) in ASRS and the eligible employee is permitted to have the previous period of continuous employment credited to his/her service credit if s/he elects to purchase eligible service credit within 90 days after the effective date of this legislation and pays the amounts prescribed within 180 days after the effective date. Also specifies persons who are ineligible for membership in ASRS, including nonresident aliens temporarily residing in the U.S. and persons who perform services under a program designed to relieve the person from unemployment. AS SIGNED BY GOVERNOR.

First sponsor: Rep. Lovas
Others: Rep. Allen


 

General Comments (all lists):

HB 2050 is part of ASRS's 2014 Legislative Initiatives.

ASRS Staff Summary:

Provisions

  • The ASRS has had some concern with employers about which positions qualify for ASRS as related to the employer’s Section 218 Agreement. A few years ago, at the request of the legislature, the ASRS placed a moratorium on removing persons determined not to be eligible for ASRS membership.
  • Last year HB2562 was passed establishing a DC plan for those members who did not qualify for either PSPRS or ASRS if they were employed on or after 09/13/2013.
  • The proposal this year is to remove the Section 218 requirements from ASRS membership qualifications. In other words the employer would have a 5 point check:
    1. Does the employee work in a position that qualifies for PSPRS?
    2. If yes, follow PSPRS statutes for hours worked requirements and contributions.
    3. If no, is the employee engaged to work at or above 20 hours per week for twenty or more weeks in a fiscal year?
    4. If yes, remit contributions to ASRS.
    5. If no, do not remit contributions to ASRS.
  • On the effective date everyone in this group, 1) Those who are currently contributing but may not qualify, 2) Those who we removed from the program once we learned they were contributing illegitimately, 3) Those who were never enrolled in ASRS because their employer followed statute and 4) Those who are in the HB2562 DC plan, MUST join the ASRS on the effective date.
  • In Session Law the ASRS will allow groups 2, 3 & 4 to purchase their continuous past service at a reduced cost. They must make the request to purchase within 90 days and complete the purchase within another 90 days. If they do not engage in the service purchase they can still purchase past service at a later date however the cost will be based upon the actuarial present value.
  • In Session Law the ASRS will indicate that we are going to go to the IRS as it relates to group 1 and request that the IRS grandfather those folks into the ASRS Plan.

 

H2050 Daily History  Date Action
ASRS MEMBERSHIP; SECTION 218 REQS 4/16 signed by governor. Chap. 44, Laws 2014.
ASRS MEMBERSHIP; SECTION 218 REQS 4/15 House concurred in Senate amendments and passed on final reading 60-0; ready for governor.
ASRS MEMBERSHIP; SECTION 218 REQS 4/8 passed Senate 27-0; ready for House action on Senate amendments.
ASRS MEMBERSHIP; SECTION 218 REQS 4/2 Senate COW approved with the rules tech amendment.
ASRS MEMBERSHIP; SECTION 218 REQS 3/11 from Senate rules with a technical amendment.
ASRS MEMBERSHIP; SECTION 218 REQS 2/27 from Senate fin do pass.
ASRS MEMBERSHIP; SECTION 218 REQS 2/19 referred to Senate fin.
ASRS MEMBERSHIP; SECTION 218 REQS 2/18 passed House 60-0; ready for Senate.
ASRS MEMBERSHIP; SECTION 218 REQS 2/13 House COW approved with amend #4012.
ASRS MEMBERSHIP; SECTION 218 REQS 2/6 retained on House COW calendar.
ASRS MEMBERSHIP; SECTION 218 REQS 2/4 from House rules okay.
ASRS MEMBERSHIP; SECTION 218 REQS 1/29 from House ins-ret with amend #4012.
ASRS MEMBERSHIP; SECTION 218 REQS 1/15 referred to House ins-ret.
H2122: ASRS; ELECTION; EORP DEFINED CONTRIBUTION Questions/Comments: nicholasp@azasrs.gov

Retroactive to January 1, 2014, a state elected official who was elected or appointed before December 31, 2013 and who is a member of the Arizona State Retirement System because s/he previously elected not to participate in the Elected Officials' Retirement Plan (EORP) is no longer required to elect to continue or resume participation in ASRS in writing and is subject to the ASRS without the election. Also, an elected official who no longer holds office must apply for EORP defined contribution disability program benefits within one year of terminating office. Payment of the disability benefits can be made retroactive only to the date of application. Emergency clause. AS SIGNED BY GOVERNOR.

First sponsor: Rep. Lovas


 

General Comments (all lists):

HB 2122

Provisions

  • At the encouragement of PSPRS tax counsel this statute requires that elected officials who were previously members of ASRS must rejoin ASRS and do not have the option to elect to participate in the EORP DC plan.

H2122 Daily History  Date Action
ASRS; ELECTION; EORP DEFINED CONTRIBUTION 4/22 signed by governor. Chap. 131, Laws 2014.
ASRS; ELECTION; EORP DEFINED CONTRIBUTION 4/16 House concurred in Senate amendments and passed on final reading 42-15; ready for governor.
ASRS; ELECTION; EORP DEFINED CONTRIBUTION 4/16 passed Senate 27-1; ready for House action on Senate amendments.
ASRS; ELECTION; EORP DEFINED CONTRIBUTION 4/15 Senate COW approved with floor amend #4936.
ASRS; ELECTION; EORP DEFINED CONTRIBUTION 3/17 from Senate rules okay.
ASRS; ELECTION; EORP DEFINED CONTRIBUTION 3/13 from Senate fin do pass.
ASRS; ELECTION; EORP DEFINED CONTRIBUTION 2/25 referred to Senate fin.
ASRS; ELECTION; EORP DEFINED CONTRIBUTION 2/24 passed House 32-27 (lost emergency clause); ready for Senate.
ASRS; ELECTION; EORP DEFINED CONTRIBUTION 2/17 to House consent calendar. From House rules okay.
ASRS; ELECTION; EORP DEFINED CONTRIBUTION 1/22 from House ins-ret do pass.
ASRS; ELECTION; EORP DEFINED CONTRIBUTION 1/21 referred to House ins-ret. House ins-ret do pass; report awaited.
H2166: PSPRS CONTRIBUTIONS; COUNTY EMPLOYERS Questions/Comments: nicholasp@azasrs.gov

A county employer participating in the Public Safety Personnel Retirement Plan (PSPRS) that elected to pay a higher level percentage contribution rate is permitted to eliminate that higher level percentage contribution rate amount for members hired on or after January 1, 2015. Statutes creating separate 401(h) accounts for Elected Official’s Retirement Plan, PSPRS, and Corrections Officer Retirement Plan retiree health insurance subsidies are retroactive to the dates the subsidies were first offered under each plan in order to allow the subsidies to be excluded from retirees’ income for income tax purposes. AS SIGNED BY GOVERNOR.

First sponsor: Rep. Orr
Others: Rep. Steele


 
H2166 Daily History  Date Action
PSPRS CONTRIBUTIONS; COUNTY EMPLOYERS 4/23 signed by governor. Chap. 202, Laws 2014.
PSPRS CONTRIBUTIONS; COUNTY EMPLOYERS 4/21 House concurred in Senate amendments and passed on final reading 54-1; ready for governor.
PSPRS CONTRIBUTIONS; COUNTY EMPLOYERS 4/21 passed Senate 23-0; ready for House action on Senate amendments.
PSPRS CONTRIBUTIONS; COUNTY EMPLOYERS 4/17 Senate COW approved with amend #4783.
PSPRS CONTRIBUTIONS; COUNTY EMPLOYERS 4/10 from Senate rules okay.
PSPRS CONTRIBUTIONS; COUNTY EMPLOYERS 3/24 from Senate fin with amend #4783.
PSPRS CONTRIBUTIONS; COUNTY EMPLOYERS 3/19 Senate fin amended; report awaited.
PSPRS CONTRIBUTIONS; COUNTY EMPLOYERS 2/19 referred to Senate fin.
PSPRS CONTRIBUTIONS; COUNTY EMPLOYERS 2/18 passed House 60-0; ready for Senate.
PSPRS CONTRIBUTIONS; COUNTY EMPLOYERS 2/13 House COW approved with amend #4058.
PSPRS CONTRIBUTIONS; COUNTY EMPLOYERS 2/11 from House rules okay.
PSPRS CONTRIBUTIONS; COUNTY EMPLOYERS 2/5 from House ins-ret with amend #4058.
PSPRS CONTRIBUTIONS; COUNTY EMPLOYERS 1/28 House ins-ret held.
PSPRS CONTRIBUTIONS; COUNTY EMPLOYERS 1/22 referred to House ins-ret.
H2321: PROCUREMENT CODE OMNIBUS Questions/Comments: nicholasp@azasrs.gov

Various changes to the Arizona Procurement Code, including exempting the Department of Gaming for problem gambling treatment services contracts with licensed behavioral health professionals, and exempting contracts for credit reporting services. State employees who have a "significant procurement role" (defined) are prohibited from accepting a position with or having employment discussions with the successful offeror and their lobbyists during a period beginning on signature of the first nondisclosure agreement for a solicitation or at the time of request for a procurement and ending one year after the purchased materials are delivered or the purchase of services or construction begins. The Director of the Department of Administration is authorized to waive any or all of the waiting period in excess of 24 months. Beginning October 1, 2014, if an agency uses a qualified vendor list of persons or entities that are eligible to be selected to design, develop, implement or construct any form of project associated with the list, any procurement officer who evaluated or approved the vendor list or any employee having a significant procurement role in developing the vendor list is prohibited from accepting an offer of employment from or having employment discussions with a vendor on the list within one year after the initial publication of the list or with a newly added vendor within one year after the vendor is added to the original list. These prohibitions do not apply to procurement officers or employees who in good faith rely on a determination issued by the Director that s/he has not had a significant procurement role. AS SIGNED BY GOVERNOR.

First sponsor: Rep. J. Pierce


 
H2321 Daily History  Date Action
PROCUREMENT CODE OMNIBUS 4/22 signed by governor. Chap. 145, Laws 2014.
PROCUREMENT CODE OMNIBUS 4/17 House concurred in Senate amendments and passed on final reading 57-0; ready for governor.
PROCUREMENT CODE OMNIBUS 4/16 passed Senate 28-0; ready for House action on Senate amendments.
PROCUREMENT CODE OMNIBUS 4/15 Senate COW approved with floor amend #4937.
PROCUREMENT CODE OMNIBUS 4/3 from Senate rules okay.
PROCUREMENT CODE OMNIBUS 4/2 stricken from Senate consent calendar by Driggs.
PROCUREMENT CODE OMNIBUS 4/2 to Senate consent calendar.
PROCUREMENT CODE OMNIBUS 3/24 from Senate gov-env do pass.
PROCUREMENT CODE OMNIBUS 3/21 Senate gov-env do pass; report awaited.
PROCUREMENT CODE OMNIBUS 3/11 referred to Senate gov-env.
PROCUREMENT CODE OMNIBUS 3/10 passed House 57-0; ready for Senate.
PROCUREMENT CODE OMNIBUS 3/5 House COW approved with amend #4056.
PROCUREMENT CODE OMNIBUS 2/17 from House rules okay.
PROCUREMENT CODE OMNIBUS 2/5 from House gov with amend #4056.
PROCUREMENT CODE OMNIBUS 2/4 House gov amended; report awaited.
PROCUREMENT CODE OMNIBUS 1/28 referred to House gov.
S1082: ASRS; EMPLOYEE BACKGROUND CHECKS Questions/Comments: nicholasp@azasrs.gov

The Arizona State Retirement System Director is authorized to conduct criminal records checks for current or prospective ASRS employees, and to conduct credit checks for accounting, investment and other finance-related ASRS positions. AS SIGNED BY GOVERNOR.

First sponsor: Sen. Yarbrough


 

General Comments (all lists):

SB 1082 is part of the ASRS’s 2014 Legislative Initiatives.

ASRS Staff Summary:

Provisions

  • Allows ASRS to perform background checks and credit checks on current and prospective employees.
  • If the ASRS intends on performing credit checks the agency must first establish a policy on how credit checks would be performed and how the information would be relayed to the employee.

S1082 Daily History  Date Action
ASRS; EMPLOYEE BACKGROUND CHECKS 4/24 signed by governor. Chap. 218, Laws 2014.
ASRS; EMPLOYEE BACKGROUND CHECKS 4/22 passed House 57-0; ready for governor.
ASRS; EMPLOYEE BACKGROUND CHECKS 4/9 House COW approved.
ASRS; EMPLOYEE BACKGROUND CHECKS 3/24 from House rules okay.
ASRS; EMPLOYEE BACKGROUND CHECKS 3/19 from House gov do pass.
ASRS; EMPLOYEE BACKGROUND CHECKS 2/20 referred to House gov.
ASRS; EMPLOYEE BACKGROUND CHECKS 2/3 passed Senate 29-0; ready for House.
ASRS; EMPLOYEE BACKGROUND CHECKS 1/28 from Senate rules okay.
ASRS; EMPLOYEE BACKGROUND CHECKS 1/27 to Senate consent calendar.
ASRS; EMPLOYEE BACKGROUND CHECKS 1/23 from Senate fin do pass.
ASRS; EMPLOYEE BACKGROUND CHECKS 1/22 Senate fin do pass; report awaited.
ASRS; EMPLOYEE BACKGROUND CHECKS 1/16 referred to Senate fin.
S1083: ASRS; APPLICABLE INTEREST RATE; DEFINITION Questions/Comments: nicholasp@azasrs.gov

For specified actuarial adjustments for Arizona State Retirement System benefits, the stability period during which the "applicable interest rate" (defined) remains constant is the plan year, and the look-back month that is used to determine the applicable interest rate is the third full calendar month preceding the first day of the stability period. AS SIGNED BY GOVERNOR.

First sponsor: Sen. Yarbrough


 

General Comments (all lists):

SB 1083 is part of the ASRS’s 2014 Legislative Initiatives.

ASRS Staff Summary:

Provisions

  • Makes technical IRS conforming changes. Is a current process but places this process in statute.

S1083 Daily History  Date Action
ASRS; APPLICABLE INTEREST RATE; DEFINITION 4/23 signed by governor. Chap. 180, Laws 2014.
ASRS; APPLICABLE INTEREST RATE; DEFINITION 4/17 passed House 57-0; ready for governor.
ASRS; APPLICABLE INTEREST RATE; DEFINITION 3/13 from House rules okay. To House consent calendar.
ASRS; APPLICABLE INTEREST RATE; DEFINITION 2/26 from House ins-ret do pass.
ASRS; APPLICABLE INTEREST RATE; DEFINITION 2/20 referred to House ins-ret.
ASRS; APPLICABLE INTEREST RATE; DEFINITION 2/3 passed Senate 29-0; ready for House.
ASRS; APPLICABLE INTEREST RATE; DEFINITION 1/28 from Senate rules okay.
ASRS; APPLICABLE INTEREST RATE; DEFINITION 1/27 to Senate consent calendar.
ASRS; APPLICABLE INTEREST RATE; DEFINITION 1/23 from Senate fin do pass.
ASRS; APPLICABLE INTEREST RATE; DEFINITION 1/22 Senate fin do pass; report awaited.
ASRS; APPLICABLE INTEREST RATE; DEFINITION 1/16 referred to Senate fin.
S1084: ASRS; LONG-TERM DISABILITY COMPENSATION Questions/Comments: nicholasp@azasrs.gov

For the purpose of the Arizona State Retirement System Long-Term Disability Program, the definition of "monthly compensation" is modified to mean the amount determined by taking the six pay periods immediately preceding the date of the member's disability, disregarding the highest two and lowest two, and deriving the median of the two remaining pay periods. If the member was employed for fewer than six pay periods, the median of the number of pay periods the member worked in that fiscal year is used. AS SIGNED BY GOVERNOR.

First sponsor: Sen. Yarbrough


 

General Comments (all lists):

SB 1084 is part of the ASRS’s 2014 Legislative Initiatives.

ASRS Staff Summary:

Provisions

  • Clarifies how the ASRS calculates compensation for LTD benefits.
  • Statutes say the calculation used to determine a person's salary for LTD purposes is both “at the time of disability” and “an average of the previous 12 months’ salary”. ASRS is proposing to change the language to conform to our current process which is more in line with what one’s salary is at the time of their disability.

S1084 Daily History  Date Action
ASRS; LONG-TERM DISABILITY COMPENSATION 4/17 signed by governor. Chap. 69, Laws 2014.
ASRS; LONG-TERM DISABILITY COMPENSATION 4/16 passed House 59-0; ready for governor.
ASRS; LONG-TERM DISABILITY COMPENSATION 3/31 House COW approved.
ASRS; LONG-TERM DISABILITY COMPENSATION 3/18 Stricken from House consent calendar by Mach.
ASRS; LONG-TERM DISABILITY COMPENSATION 3/13 from House rules okay. To House consent calendar.
ASRS; LONG-TERM DISABILITY COMPENSATION 2/26 from House ins-ret do pass.
ASRS; LONG-TERM DISABILITY COMPENSATION 2/25 House ins-ret do pass; report awaited.
ASRS; LONG-TERM DISABILITY COMPENSATION 2/20 referred to House ins-ret.
ASRS; LONG-TERM DISABILITY COMPENSATION 2/3 passed Senate 28-1; ready for House.
ASRS; LONG-TERM DISABILITY COMPENSATION 1/28 from Senate rules okay.
ASRS; LONG-TERM DISABILITY COMPENSATION 1/27 to Senate consent calendar.
ASRS; LONG-TERM DISABILITY COMPENSATION 1/23 from Senate fin do pass.
ASRS; LONG-TERM DISABILITY COMPENSATION 1/22 Senate fin do pass; report awaited.
ASRS; LONG-TERM DISABILITY COMPENSATION 1/16 referred to Senate fin.
Posted Calendars and Committee Hearings
No hearings, calendars, or amendments posted.


Bills Failing to Pass
Bill Summaries
H2017: ASRS; DEFINED CONTRIBUTION PLAN Questions/Comments: nicholasp@azasrs.gov

If a retired member of a statewide retirement system or plan who meets the other eligibility requirements is enrolled in the ASRS defined contribution plan at the employer's option, the option is irrevocable for the remainder of the employee's employment and an agreement must be executed within 30 days of either the start of employment or the effective date of this legislation, whichever is later. Agreements between an employee and employer that require participation in an alternative retirement plan must be executed within 30 days of either the start of employment or the effective date of this legislation, whichever is later, instead of within two years of initial eligibility.

First sponsor: Rep. Lovas


 

General Comments (all lists):

HB 2017 is part of the ASRS’s 2014 Legislative Initiatives.

ASRS Staff Summary

Provisions

  • Makes technical changes to the Defined Contribution plan established in the 2013 session for members who were ineligible for PSPRS because they do not perform hazardous duty but are also ineligible for ASRS because their position is not covered by the employer’s Social Security Section 218 Agreement
  • Defines who is in fact eligible for this plan
  • Places a 30 day time limit on the amount of time a new employee has to make an election to join the DC plan or another plan established by the employer.

The ASRS requested this bill be held in the Senate because of the progress of HB2050. This bill is dead for the 2014 Legislative Session and will not be pursued in future sessions because HB2050 closes the 38-955 defined contribution plan created in the 2013 Legislative Session.

H2017 Daily History  Date Action
ASRS; DEFINED CONTRIBUTION PLAN 2/18 referred to Senate fin.
ASRS; DEFINED CONTRIBUTION PLAN 2/3 passed House 56-0; ready for Senate.
ASRS; DEFINED CONTRIBUTION PLAN 1/27 to House consent calendar.
ASRS; DEFINED CONTRIBUTION PLAN 1/27 from House rules okay.
ASRS; DEFINED CONTRIBUTION PLAN 1/15 from House ins-ret do pass.
ASRS; DEFINED CONTRIBUTION PLAN 1/14 House ins-ret do pass; report awaited.
ASRS; DEFINED CONTRIBUTION PLAN 1/13 referred to House ins-ret.
H2018: MORTGAGES; TRUST DEEDS; DEFICIENCY ACTIONS (ASRS; IN-SERVICE DISTRIBUTIONS) Questions/Comments: nicholasp@azasrs.gov

For mortgages and deeds of trust originated after December 31, 2014, anti-deficiency protection does not apply to real property owned by a person engaged in the business of constructing and selling dwellings that was acquired by the person in the course of that business, property that contains a dwelling that was never “substantially completed” (defined), or property that contains a dwelling that is never actually utilized as a dwelling. AS SIGNED BY GOVERNOR.

First sponsor: Rep. Lovas


 

General Comments (all lists):

HB2018 is part of the ASRS’s 2014 Legislative Initiatives.

ASRS Staff Summary:

Provisions

  • Makes changes to A.R.S. § 38-764(I) and § 38-766 regarding “in-service distributions” and “termination of employment”
  • 38-764: Currently a member that is at normal retirement is permitted to retire and receive their pension without terminating employment as long as they reduce their hours below membership criteria. This is in conflict with the IRS determination of Normal Retirement Age and thus they would deem those payments an in service distribution. In order to conform with IRS NRA the statute would say that, beginning 01/01/2015, in order to retire without terminating employment a member must be at least age 62.
  • 38-766: Currently a member can retire, terminate employment, and return to work as long as they maintain hours below membership criteria. In practice members have retired and “terminated” employment on one day and returned to work the subsequent day. In order to ensure that employees have a true break in service between the time they retire and the time they return to work the statute proposes that a member must be terminated from employment for at least 30 days before they can return to work for ANY ASRS employer.

The ASRS elected not to proceed with this bill for the 2014 Legislative Session. This bill has been used as a Striker to address an issue unrelated to ASRS.

H2018 Daily History  Date Action
MORTGAGES; TRUST DEEDS; DEFICIENCY ACTIONS 4/22 signed by governor. Chap. 129, Laws 2014.
MORTGAGES; TRUST DEEDS; DEFICIENCY ACTIONS 4/16 House concurred in Senate amendments and passed on final reading 55-2; ready for governor.
MORTGAGES; TRUST DEEDS; DEFICIENCY ACTIONS 4/15 Senate COW approved with amend #4780 and the rules tech amend. NOTE SHORT TITLE CHANGE. Passed Senate 29-1; ready for House action on Senate amendments.
ASRS; IN-SERVICE DISTRIBUTIONS 4/8 from Senate rules with a technical amendment.
ASRS; IN-SERVICE DISTRIBUTIONS 3/20 from Senate fin with amend #4780.
ASRS; IN-SERVICE DISTRIBUTIONS 3/19 Senate fin amended; report awaited.
ASRS; IN-SERVICE DISTRIBUTIONS 2/18 referred to Senate fin.
ASRS; IN-SERVICE DISTRIBUTIONS 2/3 passed House 56-0; ready for Senate.
ASRS; IN-SERVICE DISTRIBUTIONS 1/30 House COW approved with floor amend #4031.
ASRS; IN-SERVICE DISTRIBUTIONS 1/27 to House consent calendar. Stricken from consent calendar by Lovas.
ASRS; IN-SERVICE DISTRIBUTIONS 1/27 from House rules okay.
ASRS; IN-SERVICE DISTRIBUTIONS 1/15 from House ins-ret do pass.
ASRS; IN-SERVICE DISTRIBUTIONS 1/14 House ins-ret do pass; report awaited.
ASRS; IN-SERVICE DISTRIBUTIONS 1/13 referred to House ins-ret.
H2049: RETIREMENT PLANS; COMPENSATION; DEFINITION Questions/Comments: nicholasp@azasrs.gov

For the purpose of the Elected Officials’ Retirement Plan and the Public Safety Personnel Retirement System, the definition of “compensation” is modified to include amounts paid as shift differential pay and military differential wage pay, and to exclude overtime pay, various types of incentive pay, nonmonetary benefits, termination pay, short-term disability income or workers’ compensation benefits.

First sponsor: Rep. Allen


 

General Comments (all lists):

HB 2049

Provisions

  • Changes the definition of what qualifies as compensation for the purposes of calculating ones pension.
  • Compensation does not include merit awards, overtime pay, incentive pay (including payments received from ASRS or PSPRS incentive compensation plans), bonus pay, longevity pay, performance pay, termination incentive pay, etc.
  • Compensation does include shift differential pay and military differential pay.

This bill failed to pass in the House Insurance and Retirement Committee.

H2049 Daily History  Date Action
RETIREMENT PLANS; COMPENSATION; DEFINITION 1/21 FAILED House ins-ret 4-4.
RETIREMENT PLANS; COMPENSATION; DEFINITION 1/21 referred to House ins-ret.
H2056: RETIREMENT; RETURN TO WORK Questions/Comments: nicholasp@azasrs.gov

Statute allowing a retired Arizona State Retirement System member to return to work and still be eligible to receive retirement benefits under specified conditions is repealed. Prohibits ASRS, Public Safety Personnel Retirement System and Corrections Officer Retirement Plan employers from contracting or leasing a retired member to work in any capacity. A retired member currently working on contract or lease with an ASRS, PSPRS or CORP employer may complete the term of the current contract but may not renew the contract or lease.

First sponsor: Rep. Allen


 

General Comments (all lists):

HB 2056

Provisions

  • Does not allow a member to be receiving an ASRS pension and be employed with an ASRS employer.
  • States if a retired member returns to work with an ASRS employer the ASRS must suspend their pension and the member must remit contributions to ASRS.
  • Does not permit an employer to hire a retired member in a contract or leased position.

This bill was not heard in the Insurance and Retirement Committee before the deadline.

H2056 Daily History  Date Action
RETIREMENT; RETURN TO WORK 2/11 referred to House ins-ret.
H2058: PUBLIC PENSIONS; LIMIT ON COMPENSATION Questions/Comments: nicholasp@azasrs.gov

For employees hired on or after the effective date of this legislation, the annual compensation of each member of the Arizona State Retirement System (ASRS), Public Safety Personnel Retirement System and Corrections Officer Retirement Plan for any fiscal year or other specified 12 consecutive month period taken into account for retirement benefits cannot exceed $150,000. Every three years, the committee of reference responsible for the oversight of retirement issues is required to review the compensation limit to determine whether it should be increased. Appropriates $283,239 from the ASRS Administration Account Fund in FY2014-15 to the ASRS for implementation. AS PASSED SENATE.

First sponsor: Rep. Kavanagh


 

General Comments (all lists):

HB 2058

Provisions

  • Impliments a cap on earnings, prospectively, stating that only the first $150,000 dollars of a member's earnings can be used to determine contributions to the pension system.

Fiscal Impact

In present value the ASRS would collect $80m less in contributions because the $150,000 cap is not indexed with inflation. Although this bill would only apply to prospective members the ASRS currently has a population of just under 700 members earning more than $150,000 per year. Assuming future member earnings and increased salaries over time the ASRS actuary projects that 32,000 members would be impacted by this cap by 2044. Additionally, if this cap is imposed members earning less than $150,000 would be paying more, as a percent of their income, into the plan than would a member making in excess of $150,000 and thus lower income workers would be responsible for paying a larger portion of the fund deficit.

 

HB 2058 Failed upon House recondsideration April 22, 2014.

H2058 Daily History  Date Action
PUBLIC PENSIONS; LIMIT ON COMPENSATION 4/22 FAILED to pass House on final reading reconsideration 26-31.
PUBLIC PENSIONS; LIMIT ON COMPENSATION 4/21 House concurred in Senate amendments and FAILED to pass on final reading 29-26. House voted to reconsider failure to pass bill.
PUBLIC PENSIONS; LIMIT ON COMPENSATION 4/21 passed Senate 16-7; ready for House action on Senate amendments.
PUBLIC PENSIONS; LIMIT ON COMPENSATION 4/17 Senate COW approved with floor amend #5037 and #5038.
PUBLIC PENSIONS; LIMIT ON COMPENSATION 4/10 from Senate rules okay.
PUBLIC PENSIONS; LIMIT ON COMPENSATION 3/20 from Senate fin do pass.
PUBLIC PENSIONS; LIMIT ON COMPENSATION 3/19 Senate fin do pass; report awaited.
PUBLIC PENSIONS; LIMIT ON COMPENSATION 2/25 referred to Senate fin.
PUBLIC PENSIONS; LIMIT ON COMPENSATION 2/24 passed House 33-26; ready for Senate.
PUBLIC PENSIONS; LIMIT ON COMPENSATION 2/20 House COW approved with amend #4013.
PUBLIC PENSIONS; LIMIT ON COMPENSATION 2/17 from House rules okay.
PUBLIC PENSIONS; LIMIT ON COMPENSATION 1/29 from House ins-ret with amend #4013.
PUBLIC PENSIONS; LIMIT ON COMPENSATION 1/22 referred to House ins-ret.
H2060: PSPRS OVERSIGHT; RULEMAKING; PROCUREMENT Questions/Comments: nicholasp@azasrs.gov

The Public Safety Personnel Retirement System Board is no longer exempt from the Administrative Procedures Act or the Arizona Procurement Code. The Board is required to establish and maintain an Administration Account consisting of all monies for administrative purposes. Expenditures from the Account must be made in accordance with Board directives, subject to legislative appropriation. Specifies expenditures from the Account that are continuously appropriated in the amount the Board deems necessary.

First sponsor: Rep. Kavanagh


 

General Comments (all lists):

HB 2060

Provisions

  • Amendment provision indicates that the ASRS would not be required to go through the procurement process to obtain investment related goods or service and investment related legal services.

This bill as a stand alone bill is dead for this legislative session.

H2060 Daily History  Date Action
PSPRS OVERSIGHT; RULEMAKING; PROCUREMENT 2/27 House COW approved with amend #4117 and floor amend #4386. FAILED to pass House 24-33.
PSPRS OVERSIGHT; RULEMAKING; PROCUREMENT 2/24 from House rules okay.
PSPRS OVERSIGHT; RULEMAKING; PROCUREMENT 2/12 from House ins-ret with amend #4117.
PSPRS OVERSIGHT; RULEMAKING; PROCUREMENT 2/11 House ins-ret amended; report awaited.
PSPRS OVERSIGHT; RULEMAKING; PROCUREMENT 1/28 FAILED House ins-ret 4-4.
PSPRS OVERSIGHT; RULEMAKING; PROCUREMENT 1/22 referred to House ins-ret.
H2063: RETIREMENT SAVINGS; EMPLOYEES Questions/Comments: nicholasp@azasrs.gov

Adds a new chapter to Title 23 (Labor) establishing the Arizona Secure Choice Retirement Savings (ASCRS) Trust Program. Any person or entity engaged in business or other enterprise in Arizona, excluding public entities, that has five or more employees and has been in business at all times during the current and preceding calendar year is an eligible employer and may participate in the ASCRS Program. Establishes a 7-member ASCRS Board, specifies Board powers, and establishes an ASCRS Trust to be administered by the Board. The ASCRS Program must include one or more payroll deposit retirement savings arrangements as determined by the Board. Provides for enrollment, contributions and financial reports. The ASCRS Program terminates on July 1, 2024.

First sponsor: Rep. Quezada
Others: Sen. Gallardo, Rep. McCune Davis, Rep. Mendez


 

General Comments (all lists):

This bill was not heard in the Insurance and Retirement Committee by the deadline.

H2063 Daily History  Date Action
RETIREMENT SAVINGS; EMPLOYEES 1/22 referred to House ins-ret, appro.
H2069: ASRS; POLITICAL SUBDIVISION ENTITIES Questions/Comments: nicholasp@azasrs.gov

Employees of "political subdivision entities" (defined in statute) who are hired on or after the effective date of this legislation are excluded from membership in the Arizona State Retirement System.

First sponsor: Rep. Ugenti
Others: Rep. Kwasman, Rep. Mesnard, Rep. Petersen, Rep. Townsend


 

General Comments (all lists):

HB 2069

Provisions

  • States that new employees of a political subdivision entities are excluded from membership in ASRS.
  • The amendment provided in the Committee of the Whole on 02/27/2014 indicates that an employee who is currently of a member of ASRS and becomes employed with a political subdivision entity will maintain their membership in ASRS.

The ASRS has identified 15 employers that would be impacted by this bill:

Arizona Association of Counties, Arizona Counties Insurance Pool, Arizona Interscholastic Association, Arizona Municipal Water Users Association, Arizona Prosecuting Attorneys Advisory Council, Central Arizona Association of Governments, CountySupervisors Association, League of ArizonaCities and Towns, Maricopa Association of Governments, Northern Arizona Council of Governments, Northern Arizona Council of Governments Headstart, Pima Association of Governments, SouthEastern Arizona Governments Organization, Valley Schools Management Group, Western Arizona Council of Governments

Fiscal Impact

The ASRS actuary is predicting that total contributions will decrease by approximately $23.1M in present value (over 30 years), which would be paid by the remaining employees and employers of ASRS. This equates to a contribution rate increase of about 0.03 percent in most years. There is a ramping up of the contribution effect from 0.0 percent in FY2013 to the 0.03 percent in FY2023.

This bill as a stand alone bill is dead for this legislative session.

H2069 Daily History  Date Action
ASRS; POLITICAL SUBDIVISION ENTITIES 2/27 House COW approved with floor amend #4402.
ASRS; POLITICAL SUBDIVISION ENTITIES 2/24 from House rules okay.
ASRS; POLITICAL SUBDIVISION ENTITIES 2/12 from House ins-ret do pass.
ASRS; POLITICAL SUBDIVISION ENTITIES 1/22 referred to House ins-ret.
H2090: DEFINED CONTRIBUTION RETIREMENT PLANS; OPTION Questions/Comments: nicholasp@azasrs.gov

The Arizona State Retirement System is required to establish, administer and operate a defined contribution (DC) retirement plan for employees who are otherwise eligible for ASRS, the Public Safety Personnel Retirement System or the Corrections Officer Retirement Plan but who elect to participate in the DC plan. The ASRS Board is authorized to delegate authority to implement the plan to the ASRS Director, to administer the plan through contracts with multiple vendors and to employ the services of the third-party administrator that administers the ASRS supplemental defined contribution plan to also administer the plan. All employee contributions made to the defined contribution plan must be picked up and paid by the employer. Employees must elect to participate in the plan in writing, and the election is irrevocable for the remainder of the employee's employment. Specifies employee and employer contribution rates.

First sponsor: Rep. Lovas
Others: Rep. Allen, Rep. Kwasman, Rep. Lesko, Rep. Livingston, Rep. Mesnard, Rep. Mitchell, Rep. Olson, Rep. Orr, Rep. Petersen, Rep. Shope


 

General Comments (all lists):

HB 2090

Provisions

Permits employees who are not active, inactive, disabled, or retired members of the Plan or System to execute a DB Plan opt-out within 30 days of employment and join a DC Plan instead. Key provisions include:

  • Employees contribute 7.5% o salary to the DC Plan.
  • The employer contribution is determined by subtracting the Alternate Contribution Rate (ACR) from the Employer’s Total Rate. The ACR amount is contributed to the DB Plan from which the employee opted-out, and the remainder is contributed to the DC Plan as the employer match. The employer rate is capped at 8%.
  • Assets in the employee’s DC Plan account are immediately vested.
  • DC Plan members and employers contribute to and participate in the LTD Program administered by the DB Plan from which they opted-out.
  • Retirees from the DC Plan are permitted to join the Retiree Group Health Insurance Plan administered by the DB Plan from which they opted-out, but do not receive any Health Benefit Supplement.

This bill failed to pass in the House Insurance and Retirement Committee.

H2090 Daily History  Date Action
DEFINED CONTRIBUTION RETIREMENT PLANS; OPTION 1/28 FAILED House ins-ret 4-4
DEFINED CONTRIBUTION RETIREMENT PLANS; OPTION 1/22 referred to House ins-ret.
H2203: ASRS; PSPRS; BOARD MEMBERSHIP Questions/Comments: nicholasp@azasrs.gov

Increases the number of members and modifies the membership of the Arizona State Retirement System Board and the Public Safety Personnel Retirement System Board of Trustees. Session law provides that all current board members may continue to serve until the expiration of their normal terms.

First sponsor: Rep. Lovas
Others: Rep. Allen, Rep. Gray, Rep. Livingston, Rep. Montenegro


 

General Comments (all lists):

HB 2203

Provisions

  • This bills changes the construct of the current ASRS Board of Trustees.
  • The proposal would require that the ASRS board must have one employee of an employer in a county of 500,000 or more persons and one employee of an employer in a county of 500,000 or fewer persons.
  • Additionally, the legislation increases the number, from four to six, of members who must have ten years of significant investment experience.

 

This bill as a stand alone bill is dead for this legislative session.

H2203 Daily History  Date Action
ASRS; PSPRS; BOARD MEMBERSHIP 3/3 retained on House COW calendar.
ASRS; PSPRS; BOARD MEMBERSHIP 2/27 retained on House COW calendar.
ASRS; PSPRS; BOARD MEMBERSHIP 2/24 from House rules okay.
ASRS; PSPRS; BOARD MEMBERSHIP 1/22 from House ins-ret with amend #4004.
ASRS; PSPRS; BOARD MEMBERSHIP 1/21 referred to House ins-ret. House ins-ret amended; report awaited.
H2212: ASRS; EMPLOYER TERMINATION INCENTIVE PROGRAM Questions/Comments: nicholasp@azasrs.gov

For the purpose of statute requiring an ASRS employer to pay the amount of unfunded liability to ASRS resulting from a termination incentive program offered by that employer, the definition of "termination incentive program" means a total increase in compensation of 15 percent or more, decreased from 30 percent or more, given to a member in any year or years before termination that are ultimately used to calculate the member's retirement benefits.

First sponsor: Rep. McCune Davis


 

General Comments (all lists):

HB 2212

Provisions

  • Reduces the threshold, from thirty percent to fifteen percent, for salary increases wherein an employer is required to pay the unfunded liability to the ASRS, excluding promotions.
  • Defines promotions as a true change in job duties, job title, and position held.
  • This is an effort to stem potential salary spiking.

This bill was offered as an amendment to HB 2058.

H2212 Daily History  Date Action
ASRS; EMPLOYER TERMINATION INCENTIVE PROGRAM 1/22 referred to House ins-ret.
H2552: RETIREMENT; RETURN TO WORK; RESTRICTIONS Questions/Comments: nicholasp@azasrs.gov

Arizona State Retirement System, Public Safety Personnel Retirement System, and Corrections Officer Retirement Plan employers are prohibited from contracting with or leasing a retired member within 365 days after the member's retirement date.

First sponsor: Rep. Allen


 

General Comments (all lists):

HB 2552

Provisions

  • Would prohibit any employee from returning to work with an ASRS employer as a leased or contracted employee unless they wait 365 days from their date of termination of employment.

This bill was discussed in the Insurance and Retirement Committee but did not receive a vote.

H2552 Daily History  Date Action
RETIREMENT; RETURN TO WORK; RESTRICTIONS 2/11 referred to House ins-ret. House ins-ret held.
HCR2001: PUBLIC RETIREMENT SYSTEMS Questions/Comments: nicholasp@azasrs.gov

The 2014 general election ballot is to carry the question of whether to amend the state Constitution to provide that the Constitutional provision prohibiting public retirement system benefits from being diminished or impaired does not prohibit increases in member contributions or reductions in member benefits that are consistent with generally accepted actuarial standards and that are in the interest of the financial stability of the system.

First sponsor: Rep. Kavanagh


 

General Comments (all lists):

HCR 2001

Provisions

  • This bill is identical to HCR 2005 that was proposed in the 2013 session and was never introduced or debated in the House Insurance and Retirement Committee.
  • Attempts to place on the ballot an Amendment to Article 29 of the State Constitution which currently indicates benefits cannot be impaired or diminished.
  • The legislator is attempted to indicate that impaired or diminished does not mean that contribution rates cannot be increase and pension benefits cannot be decreased.

This bill was not heard in the Insurance and Retirement Committee or Appropriations by the deadline and is apparently dead this session.

HCR2001 Daily History  Date Action
PUBLIC RETIREMENT SYSTEMS 1/28 referred to House ins-ret.
S1085: ASRS; LONG-TERM DISABILITY PROGRAM Questions/Comments: nicholasp@azasrs.gov

For a member of the Arizona State Retirement System Long-Term Disability Program whose disability commences on or after January 1, 2015, monthly LTD Program benefits for a member who has received benefits for 24 months within a 5-year period and who is unable to perform any work for compensation are reduced to 60 percent, from 2/3, of a member's monthly compensation.

First sponsor: Sen. Yarbrough


 

General Comments (all lists):

SB 1085 is part of the ASRS’s 2014 Legislative Initiatives.

ASRS Staff Summary:

Provisions

  • Asks the legislature to identify what they deem as a reasonable income replacement ratio for individuals on LTD.
  • Currently a member placed on LTD receives 66-2/3% their salary for twenty-four (24) months if they are disabled from their job. After two years if they are disabled from doing ANY job then they are deemed to be disabled and continue receiving 66-2/3% their pre-disability salary.
  • The ASRS is asking the legislation to consider changing the income replacement after the first twenty-four months of disability from 66-2/3% to 60%.

 

This ASRS proposal is dead for the 2014 Legislative Session. This bill has been used as a Striker to address an issue unrelated to ASRS.

S1085 Daily History  Date Action
ASRS; LONG-TERM DISABILITY PROGRAM 3/13 referred to House ways-means.
ASRS; LONG-TERM DISABILITY PROGRAM 2/3 passed Senate 16-13; ready for House.
ASRS; LONG-TERM DISABILITY PROGRAM 1/30 Senate COW approved.
ASRS; LONG-TERM DISABILITY PROGRAM 1/28 from Senate rules okay.
ASRS; LONG-TERM DISABILITY PROGRAM 1/23 from Senate fin do pass.
ASRS; LONG-TERM DISABILITY PROGRAM 1/22 Senate fin do pass; report awaited.
ASRS; LONG-TERM DISABILITY PROGRAM 1/16 referred to Senate fin.
S1094: SCHOOL EMPLOYEES; PAYCHECK DEDUCTIONS; AUTHORIZATION Questions/Comments: nicholasp@azasrs.gov

School boards and school district superintendents are prohibited from deducting any third party payment from an employee's paycheck unless the employee annually provides advance express written or electronic authorization. Some exceptions. Violations are subject to a civil penalty of at least $10,000, to be deposited in the state general fund. Severability clause. Emergency clause.

First sponsor: Sen. Crandell
Others: Rep. Barton, Sen. Griffin, Rep. Mitchell, Rep. Seel, Rep. Shope, Rep. Thorpe, Sen. Ward


 

General Comments (all lists):

SB 1094

Provisions

  • States that employers must receive employee permission on an annual basis in order to take third-party deductions from that employee's paycheck.
  • Amendment was added to exlcude ASRS pension deductions from this requirement.

S1094 Daily History  Date Action
SCHOOL EMPLOYEES; PAYCHECK DEDUCTIONS; AUTHORIZATION 3/17 Senate COW approved with amend #4047. FAILED to pass Senate 13-16.
SCHOOL EMPLOYEES; PAYCHECK DEDUCTIONS; AUTHORIZATION 3/11 retained on Senate COW calendar.
SCHOOL EMPLOYEES; PAYCHECK DEDUCTIONS; AUTHORIZATION 2/17 retained on Senate COW calendar.
SCHOOL EMPLOYEES; PAYCHECK DEDUCTIONS; AUTHORIZATION 2/11 from Senate rules okay.
SCHOOL EMPLOYEES; PAYCHECK DEDUCTIONS; AUTHORIZATION 2/4 from Senate gov-env with amend #4047.
SCHOOL EMPLOYEES; PAYCHECK DEDUCTIONS; AUTHORIZATION 1/27 Senate gov-env held.
SCHOOL EMPLOYEES; PAYCHECK DEDUCTIONS; AUTHORIZATION 1/21 referred to Senate gov-env.
S1104: STATE EMPLOYEES; BACKFILLING; REWARD INCENTIVES Questions/Comments: nicholasp@azasrs.gov

The Department of Administration is authorized to adopt rules to provide incentive rewards to state employees for backfilling vacant positions. The head of each governmental unit is authorized to use vacancy savings to provide incentive rewards for employees who backfill vacant positions in an amount of up to 1/3 of the vacancy savings realized for that position for up to 5 years. The other 2/3 of the vacancy savings reverts to the fund from which it was appropriated.

First sponsor: Sen. Worsley
Others: Sen. Farley, Sen. D. Farnsworth, Sen. McComish, Sen. S. Pierce


 

General Comments (all lists):

This bill was not heard in the Government & Environment Committee by the deadline.

S1104 Daily History  Date Action
STATE EMPLOYEES; BACKFILLING; REWARD INCENTIVES 1/21 referred to Senate gov-env, appro.
S1240: TECH CORRECTION; EDUCATION; MEETINGS Questions/Comments: nicholasp@azasrs.gov

Minor change in Title 15 (Education) related to meetings of the State Board of Education. Apparent striker bus.

First sponsor: Sen. Yee


 

General Comments (all lists):

SB 1240 (STRIKER)

Provisions

  • States that an employer that is a school district or charter school cannot contract or lease a retired member within 365 days of that member's retirement date.

This bill as a stand alone bill is dead for this legislative session, 03/21/2014 is the last day that Seante Bills can be heard in House committees.

S1240 Daily History  Date Action
TECH CORRECTION; EDUCATION; MEETINGS 3/4 from Senate rules okay.
TECH CORRECTION; EDUCATION; MEETINGS 2/24 from Senate educ with amend #4302.
TECH CORRECTION; EDUCATION; MEETINGS 2/20 Senate educ amended; report awaited.
TECH CORRECTION; EDUCATION; MEETINGS 2/13 further referred to Senate educ.
TECH CORRECTION; EDUCATION; MEETINGS 1/28 referred to Senate rules only.
SCR1004: TECH CORRECTION; STATE LANDS; PRICE Questions/Comments: nicholasp@azasrs.gov

Proposes a minor change in Article X, Section 5, of the state Constitution related to state trust lands. Apparent striker bus for a proposition to be referred to the ballot at the next general election.

First sponsor: Sen. Biggs


 
SCR1004 Daily History  Date Action
TECH CORRECTION; STATE LANDS; PRICE 2/25 Senate appro held.
TECH CORRECTION; STATE LANDS; PRICE 2/20 further referred to Senate appro.
TECH CORRECTION; STATE LANDS; PRICE 1/30 referred to Senate rules only.