AZ HB2362

Repeals section 41-194.01, Arizona Revised Statutes, which authorized the attorney general to notify the state treasurer to withhold shared revenues from counties, cities, or towns for violations of state law or the Constitution of Arizona.

Removes subsection L from section 42-5029 (transaction privilege and severance tax distribution) that allowed withholding of state shared revenues to counties, cities, or towns upon attorney general notice of legal violations.

Removes subsection F from section 43-206 (urban revenue sharing fund) that allowed withholding of urban revenue sharing fund distributions to cities or towns upon attorney general notice of legal violations.

Eliminates the mechanism by which the state could redistribute withheld revenues from non-compliant municipalities among other counties, cities, or towns based on population.