AZ SB1491

Repeals section 41-194.01, Arizona Revised Statutes, which authorized the attorney general to notify the state treasurer to withhold tax revenue distributions from local governments violating state law or the Arizona Constitution.

Removes provisions from section 42-5029 (transaction privilege and severance tax distribution) that allowed the state treasurer to withhold distributions to counties, cities, and towns upon attorney general notice of legal violations, and redirects withheld funds to other municipalities.

Removes similar withholding provisions from section 43-206 (urban revenue sharing fund distribution to cities and towns) that were tied to attorney general enforcement of state law compliance.

Makes technical corrections including standardizing dollar amount formatting ($50,000 instead of "fifty thousand dollars") and fixing subsection numbering in the affected statutes.

Effective date: Section 42-5029 amendments become effective December 31, 2024.