AZ HB2354

Repeals section 41-194.01 of Arizona Revised Statutes, which previously authorized the attorney general to notify the state treasurer of local violations of state law or the Arizona Constitution.

Removes provisions from section 42-5029 (transaction privilege tax distribution) that allowed the state treasurer to withhold revenue distributions to counties, cities, and towns upon notice from the attorney general regarding violations of state law.

Removes corresponding provisions from section 43-206 (urban revenue sharing fund distribution) that authorized withholding distributions to cities and towns for violations of state law or the Constitution.

Eliminates the mechanism by which the attorney general could trigger financial penalties against local governments through revenue distribution withholding based on alleged legal violations.