AZ SB1381

Repeals Arizona Revised Statutes section 41-194.01, which authorized the Attorney General to notify the state treasurer about local ordinances violating state law or the Arizona Constitution.

Removes provisions in section 42-5029 (transaction privilege tax distribution) that allowed the state treasurer to withhold distributions to counties, cities, or towns upon Attorney General notice of legal violations, and redistribute those withheld funds to other jurisdictions.

Removes provisions in section 43-206 (urban revenue sharing fund) that allowed the state treasurer to withhold distributions to cities or towns upon Attorney General notice of legal violations.

Eliminates the state's ability to penalize local governments financially by withholding shared revenue distributions for adopting ordinances, regulations, or official actions deemed to violate state law or the Constitution.