HB2899 - 562R

Be it enacted by the Legislature of the State of Arizona:

Building Renewal

Section 1. Capital outlay appropriations; major maintenance and repair of state buildings

A. Notwithstanding section 41-793.01, Arizona Revised Statutes, the amounts appropriated in this section are appropriated for fiscal year 2024-2025 to be used by the applicable agency for major maintenance and repair activities for state buildings in accordance with title 41, chapter 4, article 7, Arizona Revised Statutes.

B. DEPARTMENT OF ADMINISTRATION $19,000,000

Fund source:

Capital outlay stabilization fund $19,000,000

The department of administration shall allocate the monies to state agencies for necessary building renewal. If monies in the capital outlay stabilization fund established by section 41-792.01, Arizona Revised Statutes, are insufficient to fund the appropriation to the department of administration for building renewal, the appropriation to the department of administration is reduced by the difference between the amount appropriated to the department of administration from the capital outlay stabilization fund and the balance in the capital outlay stabilization fund. Notwithstanding title 41, chapter 4, article 7, Arizona Revised Statutes, the department of administration may use monies appropriated for building renewal in fiscal year 2024-2025 for building projects related to retrofitting facilities for space consolidation initiatives.

C. STATE DEPARTMENT OF CORRECTIONS $ 8,557,000

Fund source:

Department of corrections building

renewal fund $ 5,864,300

Prison construction and operations fund $ 2,692,700

The state department of corrections may not spend any of this appropriation on personal services or overhead expenses related to managing the funded projects.

D. ARIZONA GAME AND FISH DEPARTMENT $ 1,795,000

Fund source:

Game and fish fund $ 1,795,000

E. ARIZONA STATE LOTTERY COMMISSION $ 218,200

Fund source:

State lottery fund $ 218,200

F. DEPARTMENT OF TRANSPORTATION $22,540,100

Fund sources:

State highway fund $22,082,800

State aviation fund $ 457,300

Individual Projects

Sec. 2. Appropriations; state agencies and boards capital projects

A. The amounts appropriated in this section are appropriated for fiscal year 2024-2025 to be used by the applicable agency or board for individual capital projects.

B. ARIZONA EXPOSITION AND STATE FAIR BOARD

Capital improvements $ 3,771,400

Fund source:

Arizona exposition and state fair fund $ 3,771,400

C. ARIZONA STATE PARKS BOARD

Capital improvements $ 3,022,000

Fund source:

State parks revenue fund $ 3,022,000

The Arizona state parks board shall report to the joint committee on capital review and the governor's office of strategic planning and budgeting if the board revises the plan for any project for which monies are appropriated by this subsection because the board receives land and water conservation grant funding.

D. ARIZONA PIONEERS' HOME

Capital improvements $ 465,000

Fund source:

Miners' hospital for miners with

disabilities land fund $ 465,000

E. DEPARTMENT OF TRANSPORTATION

Additional vehicle fueling replacement

funding for facilities located in Flagstaff,

Needle Mountain, Kingman, Tucson, Willcox,

Three Points, Saint David, Springerville,

Chambers and Holbrook $ 9,088,200

Fund source:

State highway fund $ 9,088,200

Department of Transportation Statewide Highway Construction

Sec. 3. Appropriation; department of transportation; statewide highway construction; reports; exemption

A. The amount appropriated in this section is appropriated for fiscal year 2024-2025 to plan and construct state highways, including the national system of interstate highways within this state, the state primary or secondary system, the county primary or secondary system and urban rural routes, to acquire rights-of-way and to provide for the cost of contracted field administration and field engineering on construction projects and debt service payments on bonds issued for highway construction.

B. DEPARTMENT OF TRANSPORTATION $462,488,000

Fund source:

State highway fund $462,488,000

Any balances and collections in the state highway fund established by section 28-6991, Arizona Revised Statutes, that exceed the specific amounts appropriated in the general appropriations act and in this act are appropriated to the department of transportation for the purposes provided in this section.

C. On or before November 1, 2024, the department of transportation shall report to the directors of the joint legislative budget committee and the governor's office of strategic planning and budgeting on its actual prior year, estimated current year and upcoming budget year highway construction expenses from all fund sources, including appropriated monies, federal monies, local agency monies, state highway monies, bond proceeds and regional area road monies. The report shall be in the same format as in the prior year unless the directors of the joint legislative budget committee and the governor's office of strategic planning and budgeting have approved modifications to the format.

D. On or before November 1, 2024, the department of transportation shall report capital outlay information for fiscal years 2023-2024, 2024-2025 and 2025-2026, to the directors of the joint legislative budget committee and the governor's office of strategic planning and budgeting. This information shall appear in the same format as tables two, three and six, as found in the fiscal year 2023-2024 appropriations report.

E. On or before November 1, 2024, the department of transportation shall report the department's estimated outstanding debt principal balance at the end of fiscal year 2025-2026 and the estimated debt service payment amount for each of fiscal years 2025-2026, 2026-2027, 2027-2028 and 2028-2029, to the directors of the joint legislative budget committee and the governor's office of strategic planning and budgeting. This report shall include state highway fund statewide construction bonds, Arizona highway user revenue fund bonds, Maricopa association of governments and Pima association of governments controlled access bonds, Maricopa regional area road fund bonds and grant anticipation notes and is intended to be comparable to the information in the fiscal year 2023-2024 appropriations report.

F. Notwithstanding section 41-1252, Arizona Revised Statutes, the appropriation made in this section is not subject to review by the joint committee on capital review.

Department of Transportation Airport Planning and Development

Sec. 4. Appropriation; department of transportation; airport planning and development; report; exemption

A. The amount appropriated in this section is appropriated in fiscal year 2024-2025 to plan, construct, develop and improve state, county, city or town airports as determined by the state transportation board.

B. DEPARTMENT OF TRANSPORTATION $ 25,550,000

Fund source:

State aviation fund $ 25,550,000

Any balances and collections in the state aviation fund established by section 28-8202, Arizona Revised Statutes, that exceed the specific amounts appropriated in the general appropriations act and in this act are appropriated to the department of transportation in fiscal year 2024-2025 for the purposes provided in this section.

C. On or before December 31, 2024, the department of transportation shall report to the joint legislative budget committee staff on the status of all aviation grant awards and aviation grant distributions. The report shall delineate projects by individual airport and fiscal year, including any future year commitments.

D. Notwithstanding section 41-1252, Arizona Revised Statutes, the appropriation made in this section is not subject to review by the joint committee on capital review.

Appropriation reductions; reappropriation

Sec. 5. Appropriation reduction; fiscal year 2021-2022; appropriation; fiscal year 2027-2028; department of veterans' services; veterans' home facility; site selection; review; exemption

A. Notwithstanding any other law, the following amounts are reduced from appropriations made to the following state agency in fiscal year 2021-2022 by Laws 2021, chapter 406, section 29 for the following project:

B. DEPARTMENT OF VETERANS' SERVICES

Veterans' home facility $(25,000,000)

Fund source:

State general fund $(25,000,000)

C. The sum of $25,000,000 is appropriated from the state general fund in fiscal year 2027-2028 to the department of veterans' services to construct and establish a veterans' home facility in the northwestern portion of this state.

D. The appropriation made in subsection C of this section is intended to be this state's share of the costs and is not subject to expenditure for any purpose unless the department of veterans' services has irrevocable commitments from the United States government to fund at least sixty-five percent of the total costs.

E. The department shall submit the proposed site location in the northwestern portion of this state to the Arizona veterans' service advisory commission established by section 41-602, Arizona Revised Statutes, for approval. The department shall provide the commission a feasibility analysis of suitable sites to consider when approving the site location.

F. Before spending the appropriation made in subsection C of this section, the department of veterans' services shall submit the scope, purpose and estimated cost of the capital improvements to the joint committee on capital review for its review pursuant to section 41-1252, Arizona Revised Statutes.

G. The appropriation made in subsection C of this section is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations.

Sec. 6. Appropriation reductions; department of administration; capital projects; fiscal year 2022-2023

A. Notwithstanding any other law, the following amounts are reduced from appropriations made to the following state agency in fiscal year 2022-2023 by Laws 2022, chapter 309, sections 2 and 3 for the following project:

B. DEPARTMENT OF ADMINISTRATION

1. Building renewal $(12,875,800)

2. Building demolition $ (68,600)

3. West Adams building renovations $(48,263,600)

Fund source:

State general fund $(61,208,000)

Sec. 7. Appropriation reductions; department of administration; state department of corrections; capital projects; fiscal year 2023-2024

A. Notwithstanding any other law, the following amounts are reduced from appropriations made to the following state agencies in fiscal year 2023-2024 by Laws 2023, chapter 135, sections 7 and 8 for the following projects:

B. DEPARTMENT OF ADMINISTRATION

1. Building renewal $(22,539,500)

2. Electric vehicle charging and advance

fuel infrastructure $ (5,000,000)

Fund source:

State general fund $(27,539,500)

C. STATE DEPARTMENT OF CORRECTIONS

1. Building renewal $(19,379,100)

2. Replace evaporative cooling statewide

with HVAC $(56,983,600)

Fund source:

State general fund $(76,362,700)

Sec. 8. Appropriation reductions; appropriation; department of transportation; Riggs Road overpass; fiscal years 2020-2021, 2022-2023 and 2027-2028; fund balance transfer

A. Notwithstanding any other law, the following amounts are reduced from appropriations made to the following state agency in fiscal year 2020-2021 by Laws 2021, chapter 406, section 33 for the following project:

B. DEPARTMENT OF TRANSPORTATION

Construct an overpass at Riggs Road

and State Route 347 $(25,000,000)

Fund sources:

State general fund $(25,000,000)

C. Notwithstanding any other law, the following amounts are reduced from appropriations made to the following state agency in fiscal year 2022-2023 by Laws 2022, chapter 309, section 12, as amended by Laws 2023, chapter 135, section 5, for the following project:

D. DEPARTMENT OF TRANSPORTATION

Construct an overpass at Riggs Road

and State Route 347 $(24,000,000)

Fund sources:

State highway fund $(24,000,000)

E. Notwithstanding any other law, on or before June 30, 2024, $24,000,000 from the state highway fund established by section 28-6991, Arizona Revised Statutes, is transferred to the state general fund for the purposes of providing adequate support and maintenance for agencies of this state. This amount reflects a portion of the revenues derived from the tax levied by title 42, chapter 5, articles 1 and 5, Arizona Revised Statutes, that were transferred to the state highway fund by Laws 2022, chapter 321, section 20, subsection A, paragraph 2.

F. The sum of $49,000,000 is appropriated from the state general fund in fiscal year 2027-2028 to the department of transportation to construct an overpass at Riggs Road and State Route 347.

Sec. 9. Appropriation reductions; appropriation; department of transportation; Interstate 10; fiscal years 2022-2023, 2023-2024 and 2027-2028; fund balance transfer

B. DEPARTMENT OF TRANSPORTATION

Design and construct additional vehicle

lanes, separated by a lighted median,

on Interstate 10 between State Route 85

and Citrus Road $(55,910,000)

Fund sources:

State highway fund $(55,910,000)

C. Notwithstanding any other law, the following amounts are reduced from appropriations made to the following state agency in fiscal year 2023-2024 by Laws 2023, chapter 135, section 20 for the following project:

D. DEPARTMENT OF TRANSPORTATION

Design and construct additional vehicle

lanes, separated by a lighted median,

on Interstate 10 between State Route 85

and Citrus Road $(52,090,000)

Fund sources:

State general fund $(52,090,000)

E. Notwithstanding any other law, on or before June 30, 2024, $55,910,000 from the state highway fund established by section 28-6991, Arizona Revised Statutes, is transferred to the state general fund for the purposes of providing adequate support and maintenance for agencies of this state. This amount reflects a portion of the revenues derived from the tax levied by title 42, chapter 5, articles 1 and 5, Arizona Revised Statutes, that were transferred to the state highway fund by Laws 2022, chapter 321, section 20, subsection A, paragraph 2.

F. The sum of $108,000,000 is appropriated from the state general fund in fiscal year 2027-2028 to the department of transportation to design and construct additional vehicle lanes, separated by a lighted median, on Interstate 10 between State Route 85 and Citrus Road.

Sec. 10. Appropriation reduction; department of transportation; pavement rehabilitation; fiscal year 2022-2023

B. DEPARTMENT OF TRANSPORTATION

Rehabilitate pavement on road projects

selected pursuant to Laws 2021,

chapter 406, section 34 $(29,343,200)

Fund sources:

State highway fund $(29,343,200)

C. Notwithstanding any other law, on or before June 30, 2024, $29,343,200 from the state highway fund established by section 28-6991, Arizona Revised Statutes, is transferred to the state general fund for the purposes of providing adequate support and maintenance for agencies of this state. This amount reflects a portion of the revenues derived from the tax levied by title 42, chapter 5, articles 1 and 5, Arizona Revised Statutes, that were transferred to the state highway fund by Laws 2022, chapter 321, section 20, subsection A, paragraph 2.

Sec. 11. Appropriation reduction; department of transportation; State Route 97; fiscal year 2023-2024

A. Notwithstanding any other law, the following amounts are reduced from appropriations made to the following state agency in fiscal year 2023-2024 by Laws 2022, chapter 309, section 18 for the following project:

B. DEPARTMENT OF TRANSPORTATION

Improve State Route 97 near Bagdad $(10,000,000)

Fund sources:

State general fund $(10,000,000)

Sec. 12. Appropriation reduction; department of transportation; pavement rehabilitation projects; fiscal year 2023-2024

A. Notwithstanding any other law, the following amounts are reduced from appropriations made to the following state agency in fiscal year 2023-2024 by Laws 2023, chapter 135, section 13 for the following project:

B. DEPARTMENT OF TRANSPORTATION

Pavement rehabilitation projects $(41,000,000)

Fund sources:

State general fund $(41,000,000)

Sec. 13. Fund balance transfer; state parks revenue fund; fiscal year 2023-2024

A. Notwithstanding any other law, on or before June 30, 2024, $38,237,100 from the state parks revenue fund established by section 41-511.21, Arizona Revised Statutes, is transferred to the state general fund for the purposes of providing adequate support and maintenance for agencies of this state. This amount reflects a portion of the revenues derived from the tax levied by title 42, chapter 5, articles 1 and 5, Arizona Revised Statutes, that were transferred to the state parks revenue fund by Laws 2022, chapter 321, section 20, subsection A, paragraph 5.

B. On or before September 1, 2024, the Arizona state parks board shall submit an expenditure report to the joint committee on capital review that describes how monies appropriated from the state parks revenue fund by Laws 2022, chapter 309, sections 6, 19 and 20 will be allocated for capital projects listed in those sections after deducting the amount of the transfer made in subsection A of this section. The department may only spend monies for capital projects that were favorably reviewed by the joint committee on capital review before the effective date of this section.

Department of Transportation Highway Project Reallocations

Sec. 14. Appropriation reduction; department of transportation; State Route 90; Fort Huachuca; fiscal year 2020-2021

B. DEPARTMENT OF TRANSPORTATION

Improve State Route 90 near Fort Huachuca $ (2,095,000)

Fund sources:

State general fund $ (2,095,000)

Sec. 15. Supplemental appropriation; department of transportation; State Route 69 roundabout; fiscal year 2023-2024

A. In addition to the appropriation made by Laws 2022, chapter 309, section 8, as amended by Laws 2023, chapter 135, section 3, the following amounts are appropriated in fiscal year 2023-2024 to the following state agency for the following project:

B. DEPARTMENT OF TRANSPORTATION

Construct roundabout at intersection of

State Route 69 and State Route 169 $ 939,100

Fund sources:

State highway fund $ 939,100

Sec. 16. Appropriation reduction; department of transportation; Sonoran Corridor study; fiscal year 2022-2023

B. DEPARTMENT OF TRANSPORTATION

Conduct a tier 2 study for the Sonoran

Corridor in Pima county $ (2,436,000)

Fund sources:

State highway fund $ (2,436,000)

Sec. 17. Appropriation reduction; department of transportation; State Route 90; Moson Road; fiscal year 2022-2023

B. DEPARTMENT OF TRANSPORTATION

Improve State Route 90 from Moson

Road to Campus Drive $ (3,300,000)

Fund sources:

State highway fund $ (3,300,000)

Sec. 18. Appropriation reduction; department of transportation; State Route 303; fiscal year 2022-2023

B. DEPARTMENT OF TRANSPORTATION

Design work for the interchange at

State Route 303 and Interstate 17 $ (4,000,000)

Fund sources:

State highway fund $ (4,000,000)

Sec. 19. Appropriation reduction; department of transportation; State Route 90; pavement rehabilitation; fiscal year 2022-2023

B. DEPARTMENT OF TRANSPORTATION

Rehabilitate pavement along State Route 90

between Campus Drive and the U.S. Border

Patrol station in Huachuca City $ (8,720,000)

Fund sources:

State highway fund $ (8,720,000)

Sec. 20. Appropriation reduction; department of transportation; United States Route 191; fiscal year 2022-2023

B. DEPARTMENT OF TRANSPORTATION

Rehabilitate pavement along United States

Route 191 between Armory Road and

East Safford $ (7,038,200)

Fund sources:

State highway fund $ (7,038,200)

Sec. 21. Supplemental appropriation; department of transportation; Riggs Road overpass; fiscal year 2023-2024

A. In addition to the appropriation made by Laws 2021, chapter 406, section 33, the following amounts are appropriated to the following state agency in fiscal year 2023-2024 for the following project:

B. DEPARTMENT OF TRANSPORTATION

Final design plan, right-of-way and

easements for an overpass at

Riggs Road and State Route 347 $ 1,500,000

Fund sources:

State highway fund $ 1,500,000

Sec. 22. Appropriation reduction; department of transportation; State Route 303; fiscal year 2023-2024

B. DEPARTMENT OF TRANSPORTATION

Improve the interchange at State Route

303 and U.S. Route 60 $ (500,000)

Fund sources:

State general fund $ (500,000)

Sec. 23. Supplemental appropriation; department of transportation; state Route 87; fiscal year 2023-2024

A. In addition to the appropriation made by Laws 2023, chapter 135, section 10, the following amounts are appropriated to the following state agency in fiscal year 2023-2024 for the following project:

B. DEPARTMENT OF TRANSPORTATION

Design of State Route 87 intersection

improvements at Arica Road and Shedd Road $ 315,000

Fund sources:

State general fund $ 315,000

Sec. 24. Supplemental appropriation; department of transportation; State Route 83; fiscal year 2023-2024

B. DEPARTMENT OF TRANSPORTATION

Improve State Route 83 within

Santa Cruz county $ 1,100,000

Fund sources:

State highway fund $ 1,100,000

Sec. 25. Supplemental appropriation; department of transportation; State Route 85; fiscal year 2023-2024

B. DEPARTMENT OF TRANSPORTATION

Design work and engineer improvements on

State Route 85 between mile post 123

and Maricopa Road $ 12,600,500

Fund sources:

State highway fund $ 12,600,500

Sec. 26. Supplemental appropriation; department of transportation; State Route 260; fiscal year 2023-2024

B. DEPARTMENT OF TRANSPORTATION

Improve State Route 260 within Navajo county $ 172,200

Fund sources:

State general fund $ 172,200

Sec. 27. Supplemental appropriation; department of transportation; U.S. Route 60; fiscal year 2023-2024

B. DEPARTMENT OF TRANSPORTATION

Repave U.S. Route 60 between Morristown

and Wickenburg $ 427,700

Fund sources:

State general fund $ 206,800

State highway fund $ 220,900

Sec. 28. Supplemental appropriation; department of transportation; State Route 347; fiscal year 2023-2024

B. DEPARTMENT OF TRANSPORTATION

Improve intersection on State Route 347

at Casa Blanca Road and Cement

Plant access $ 1,901,000

Fund sources:

State general fund $ 1,901,000

Sec. 29. Fund balance transfer; state highway fund; fiscal year 2023-2024

Notwithstanding any other law, on or before June 30, 2024, $9,133,700 from the state highway fund established by section 28-6991, Arizona Revised Statutes, is transferred to the state general fund for the purposes of providing adequate support and maintenance for agencies of this state. This amount reflects a portion of the revenues derived from the tax levied by title 42, chapter 5, articles 1 and 5, Arizona Revised Statutes, that were transferred to the state highway fund by Laws 2022, chapter 321, section 20, subsection A, paragraph 2.

Sec. 30. Joint committee on capital review; projects; review

A. The following projects are deemed to have been favorably reviewed by the joint committee on capital review:

1. $2,600,000 for the following Arizona game and fish department capital projects:

(a) Replace underground valves at the Canyon Creek Hatchery.

(b) Insulate the spring on the Cold Springs Ranch property against outside contaminants.

(d) Realign and install piping in a diversion ditch at the Sipe Wildlife Area.

(e) Construct an equipment storage building at Becker Lake Wildlife Area.

2. $214,200 for Arizona state lottery commission building renewal projects for structural repairs of the commission's facility in Phoenix.

3. $250,000 for the Arizona pioneers' home project to improve the cemetery parking lot.

4. $63,000,000 for Arizona state university system revenue bond issuances to implement information technology infrastructure improvements.

5. $22,000,000 for Arizona state university system revenue bond issuances to fund a utility expansion project on the Tempe campus.

6. $16,375,000 for Yavapai college bond projects to finance the creation of centers for learning and innovation, capital improvement projects and software system upgrades.

7. $8,704,900 for the state department of corrections to purchase HVAC units and electrical equipment for installation at the Eyman prison complex.

B. The following financing provisions apply to the projects deemed to have been favorably reviewed by subsection A, paragraphs 4 and 5 of this section:

1. The favorable review does not constitute endorsement of state general fund appropriations to offset any revenues that may be required for debt service or any operations and maintenance costs when the project is complete.

2. The university shall provide the final debt service schedule and interest rate for the projects to the joint committee on capital review as soon as the final debt service schedule and interest rate are available.

3. On or before October 15 of each year until completion of the project, the university shall report to the staff of the joint legislative budget committee on the status and expenditures of the projects. The report shall include the project expenditures to date, any changes to the planned construction timeline, the expected completion date and any change to the scope of the project.

C. The following financing provisions apply to the projects deemed to have been favorably reviewed by subsection A, paragraph 6 of this section:

1. The college shall provide the final debt service schedule and interest rate for the projects to the joint committee on capital review as soon as the final debt service schedule and interest rate are available.

2. On or before July 31 of each year until completion of the project, the college shall report to the staff of the joint legislative budget committee on the status and expenditures of the projects. The report shall include the project expenditures to date, any changes to the planned construction timeline, the expected completion date and any change to the scope of the project.

Sec. 31. Appropriation; vehicle fueling stations; exemption from lapsing

Notwithstanding section 35-190, Arizona Revised Statutes, the $1,800,000 appropriated to the department of transportation by Laws 2021, chapter 406, section 31 in fiscal year 2021-2022 to replace vehicle fueling facilities in Flagstaff, Holbrook and Kingman is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until June 30, 2025.

Sec. 32. Appropriation; extend State Route 24; distribution

Notwithstanding any other law, the $87,500,000 appropriated from the state general fund to the department of transportation by Laws 2023, chapter 135, section 10, subsection A, paragraph 20 to distribute to the town of Queen Creek to extend State Route 24, including a traffic interchange at State Route 24 and Ironwood Road, shall be distributed to the town of Queen Creek on or before June 30, 2024.

Sec. 33. Use of appropriations; limit

A. The department of administration may spend up to five percent of the amounts appropriated to the department in this act, excluding amounts to be distributed to nonstate agencies, for expenditures for project management of building renewal and capital projects. All other monies appropriated to the department in this act may not be spent for personal services or employee-related expenditures or for maintenance contracts on building components and equipment without review by the joint committee on capital review.

B. Except as provided in subsection A of this section, the monies appropriated in this act may not be spent for personal services or employee-related expenditures of state employees, excluding any services provided as part of the inmate construction program for correctional facilities.