ARIZONA HOUSE OF REPRESENTATIVES Fifty-fifth Legislature Second Regular Session
	Senate: APPROP DP 5-4-1-0 | 3^rd Read 16-13-1-0

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SB 1175: noncustodial federal monies; appropriation

Sponsor: Senator Gowan, LD  14

Committee on Appropriations

Overview

Effective July 1, 2023, provides a process for the Legislature to appropriate noncustodial federal monies.

History

All monies received by Arizona are credited to the state General Fund unless they meet statutorily outlined exceptions. All federal monies granted to Arizona must be accounted for in detail as required by federal law (A.R.S. § 35-142).

Education funding from the federal government to the Arizona Department of Education in the form of noncustodial federal monies must be accounted for separately and is subject to review by the Joint Legislative Budget Committee (JLBC). Education-related noncustodial federal monies include block grants and general revenue sharing monies (A.R.S. §§ 15-1051; 15-1052).

Provisions

1. Requires budget units to account for noncustodial federal monies separately. (Sec. 1)

2. Allows the Arizona Department of Administration to use the most efficient system of accounts and records that are consistent with necessary fiscal safeguards. (Sec. 1)

3. States that the Legislature retains the authority to appropriate noncustodial federal monies. (Sec. 1)

4. Provides that a budget unit may spend noncustodial federal monies in accordance with state and federal law if the Legislature does not make an appropriation. (Sec. 1)

5. Directs the Legislature to specify the purposes for which the noncustodial federal monies are to be used in each noncustodial federal monies appropriation. (Sec. 1)

6. Allows the Legislature to make a lump sum appropriation of unanticipated noncustodial federal monies that may become available when the Legislature is out of session, provided that budget units must undergo JLBC review prior to spending that appropriation. (Sec. 1)

7. Outlines procedures for the appropriation of noncustodial federal monies if the amount appropriated by the Legislature is greater than or less than the amount received. (Sec. 1)

8. Defines noncustodial federal monies. (Sec. 1)

9. Contains a delayed effective date of July 1, 2023. (Sec. 2)

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13.                   SB 1175

14. Initials AF  Page 0 Appropriations

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