ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature

First Regular Session

Senate: APPROP DP 6-4-0-0 | 3rd Read 16-14-0-0

House: 3rd Read 31-27-2-0

SB 1525: capital outlay; appropriations; 2023-2024. (Substituted for HB 2572)

Sponsor: Senator Kavanagh, LD 3

Vetoed

Overview

Makes capital appropriations to state agencies in FY 2024.

History

In addition to the annual General Appropriations Act (feed bill) that makes most operating appropriations for the state departments and public schools, the Arizona Legislature annually adopts a capital outlay bill that appropriates monies for the capital needs of the state. In addition to State Highway Fund appropriations, the capital outlay bill generally includes building renewal appropriations for the Arizona Department of Administration (ADOA) and Arizona Department of Transportation (ADOT) building systems (A.R.S. § 41-793). Within the ADOA building system, there are designated funds for building renewal at the Arizona Department of Corrections (ADC), Arizona Game and Fish Department and State Lottery Commission.

Provisions

Building Renewal (Sec. 1)

1.   ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteAppropriates the following amounts to the specified agencies in FY 2024 for major maintenance and repair of state buildings:

ADOA

a)   $16,000,000 from the Capital Outlay Stabilization Fund (COSF);

i.   Requires ADOA to allocate these monies to state agencies for necessary building renewal; and

ii. Reduces the appropriation from COSF to the amount available in that fund if the monies are insufficient to fund the full appropriation.

ADC

b)   $5,864,300 from the Department of Corections Buidling Renewal Fund;

i.   Prohibits ADC from spending these monies on personal services or overhead expenses related to managing the funded projects.

Arizona Game and Fish Department

c)   $1,776,400 from the Game and Fish Fund;

State Lottery Commission

d)   $214,200 from the State Lottery Fund;

Arizona Department of Transportation (ADOT)

e)   $18,139,400 from the State Highway Fund; and

f) $441,900 from the State Aviation Fund.

 

Individual Projects (Sec. 2)

2.   Appropriates $31,422,000 from the state General Fund (GF) to ADC to replace evaporative cooling at statewide prisons with HVAC.

Statewide Highway Construction (Sec. 3)

3.   Appropriates $444,243,000 from the State Highway Fund to ADOT in FY 2024 to:

a)   Plan and construct state highways;

b)   Acquire rights-of-way; and

c)   Provide for the cost of contracted field administration and field enginereing on construction projects and debt service payments on bonds issued for highway construction.

4.   Appropriates any excess balances and collections in the State Highway Fund to ADOT for the above purposes.

5.   Requires ADOT to report to the Directors of the Joint Legislative Budget Committee (JLBC) and Governor's Office of Strategic Planning and Budgeting by November 1, 2023 on:

a)   Highway construction expenses from all fund sources for the prior, current and upcoming fiscal years;

b)   Capital outlay information for FYs 2023 through 2025; and

c)   Estimated debt service payment amounts for FYs 2025 through 2028.

6.   Exempts the appropriation from review by JCCR.

7.   Prevents the appropriation from lapsing until the purpose for which the appropriation is made has been accomplished or abandoned, or the appropriation stands for a full year without an expenditure or encumbrance.

Airport Planning and Development (Sec. 4)

8.   Appropriates $35,000,000 from the State Aviation Fund to ADOT in FY 2024 to plan, construct, develop and improve public airports as determined by the State Transportation Board.

9.   Appropriates any excess balances and collections in the State Aviation Fund to ADOT for the above purposes in FY 2024.

10.  Requires ADOT to report to JLBC staff by December 31, 2023 on the status of all aviation grant awards and distributions.

11.  Exempts the appropriation from review by JCCR.

12.  Prevents the appropriation from lapsing until the purpose for which the appropriation is made has been accomplished or abandoned, or the appropriation stands for a full year without an expenditure or encumbrance.

Miscellaneous (Sec. 5)

13.  Allows ADOA to spend up to 5% of the amounts appropriated to it for project management.

14.  Prohibits all other monies from being spent for personal services of employee-related expenditures of state employees, excluding any services provided as part of the inmate construction program for correctional facilities.

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18.                    SB 1525

19.  Initials AF  Page 0 Vetoed

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