Arizona 2022 2022 Regular Session

Arizona Senate Bill SB1175 Comm Sub / Analysis

Filed 03/07/2022

                      	SB 1175 
Initials AF 	Page 1 	Appropriations 
 
ARIZONA HOUSE OF REPRESENTATIVES 
Fifty-fifth Legislature 
Second Regular Session 
Senate: APPROP DP 5-4-1-0 | 3
rd
 Read 16-13-1-0 
 
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) 
☐ Prop 105 (45 votes)     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes) ☐ Fiscal Note