AZ SB1512

Repeals section 41-194.01, Arizona Revised Statutes, which allowed the Attorney General to direct withholding of state shared revenues from local governments violating state law or the Arizona Constitution.

Removes the withholding mechanism from section 42-5029 (transaction privilege tax distributions) that permitted the state treasurer to withhold revenues from counties, cities, and towns found to violate state law upon Attorney General notice.

Removes the withholding mechanism from section 43-206 (urban revenue sharing fund distributions) that permitted the state treasurer to withhold revenues from cities and towns found to violate state law upon Attorney General notice.

Eliminates the state's ability to enforce compliance with state law through revenue withholding as a penalty for local government violations of state statutes or constitutional provisions.