Assigned to APPROP AS ENACTED
ARIZONA STATE SENATE
Fifty-Sixth Legislature, First Regular Session
ENACTED
FACT SHEET FOR S.B. 1722/H.B. 2812
capital outlay; appropriations; 2023-2024.
Purpose
Makes session law changes relating to capital outlay necessary to implement the FY 2024
state budget.
Background
The Arizona Constitution prohibits substantive law from being included in the general
appropriations, capital outlay appropriations and supplemental appropriations bills. However, it is
often necessary to make statutory and session law changes to effectuate the budget. Thus, separate
bills called budget reconciliation bills (BRBs) are introduced to enact these provisions. Because
BRBs contain substantive law changes, the Arizona Constitution provides that they become
effective on the general effective date, unless an emergency clause is enacted.
S.B. 1722 contains the budget reconciliation provisions for changes relating to capital
outlay.
Provisions
Building Renewal
1. Appropriates the following amounts in FY 2024 to the following state agencies from the
specified funds for major maintenance and repair activities for state buildings:
Agency Fund Source Amount % of Formula
Arizona Department
of Administration
(ADOA)
state General Fund
(state GF)
$25,124,700 64.22%
Capital Outlay
Stabilization Fund
(COSF)
$14,000,000 35.78%
Arizona Department
of Corrections,
Rehabilitation and
Reentry (ADCRR)
state GF $33,942,600
85.27%
Department of
Corrections Building
Renewal Fund
$5,864,300 14.73% FACT SHEET – Enacted
S.B. 1722/H.B. 2812
Page 2
Agency Fund Source Amount % of Formula
Arizona Department
of Transportation
(ADOT)
State Highway Fund
(SHF)
$21,978,300 98.03%
State Aviation Fund $441,900 1.97%
Arizona Game and
Fish Department
(AZGFD)
Game and Fish Fund $1,776,400 100%
Arizona State Lottery
Commission
State Lottery Fund $214,200 100%
2. Requires ADOA to allocate monies from the capital outlay appropriation to state agencies for
necessary building renewal.
3. Reduces the ADOA appropriation for building renewal by the difference between the amount
appropriated and the balance in the COSF, if monies in the COSF are insufficient to fund the
appropriation.
4. Allows ADOA to use monies appropriated for building renewal in FY 2024 to retrofit facilities
for space consolidation initiatives.
5. Prohibits ADCRR from spending any monies from the capital outlay appropriation on personal
services or overhead expenses related to managing projects funded by the appropriation.
Individual Capital Projects
6. Appropriates the following amounts in FY 2024 to the following state agencies from the
specified funds for individual capital projects:
Agency Purpose Fund Amount
ADCRR Replace evaporative
cooling statewide
with HVAC
state GF $66,783,600
ADCRR Statewide door, lock
and fire systems
replacement
state GF $48,650,600
ADOA Electric vehicle
charging and advance
fuel infrastructure
state GF $5,000,000
ADOT Replace vehicle
fueling facilities in
Springerville,
Holbrook and
Chambers
SHF $2,600,000 FACT SHEET – Enacted
S.B. 1722/H.B. 2812
Page 3
Agency Purpose Fund Amount
ADOT Electric vehicle
charging and advance
fuel infrastructure at
ADOT facilities open
and accessible to the
public, excluding rest
areas
SHF $2,500,000
ADOT Electric vehicle
charging and advance
fuel infrastructure at
ADOT fleet facilities
SHF $5,000,000
ADOT Renovate motor
vehicle division in
north Tucson
SHF $4,100,000
ADOT Water conservation
projects
SHF $2,500,000
ADOT Planning of passenger
rail service from
Phoenix to Tucson
state GF $3,500,000
ADOT Construct new
maintenance facility
in Keams Canyon
SHF $3,400,000
Department of
Emergency and
Military Affairs
(DEMA)
Additional
construction monies
for Surprise readiness
center
state GF $1,125,000
Arizona Exposition
and State Fair Board
Capital
improvements
Arizona Exposition
and State Fair Fund
$3,802,100
Arizona Pioneers’
Home
Capital
improvements
Miners' Hospital for
Miners with
Disabilities Land
Fund
$468,700
Arizona Pioneers’
Home
Cemetery
columbarium
Miners' Hospital for
Miners with
Disabilities Land
Fund
$75,000
Arizona Pioneers’
Home
Cemetery parking Miners' Hospital for
Miners with
Disabilities Land
Fund
$250,000
Arizona State Parks
Board (ASPB)
Capital
improvements
State Parks Revenue
Fund
$3,034,400 FACT SHEET – Enacted
S.B. 1722/H.B. 2812
Page 4
Agency Purpose Fund Amount
ASPB Verde River State
Park
state GF $7,000,000
AZGFD Dam maintenance Capital Improvement
Fund
$150,000
AZGFD Hatchery
maintenance
Capital Improvement
Fund
$400,000
AZGFD Property maintenance Capital Improvement
Fund
$300,000
AZGFD Water conservation
projects
Game and Fish Fund $500,000
Department of Health
Services (DHS)
Arizona State
Hospital (ASH) water
pump replacements
ASH Fund $209,000
DHS ASH water isolation
valves
ASH Fund $200,000
Department of Public
Safety
Renovate Flagstaff
aviation hangar
state GF $320,000
7. Directs the ASPB to establish a state park at the headwaters of the Verde River.
8. Requires the ASPB to report promptly to the Joint Committee on Capital Review (JCCR) and
the Governor's Office of Strategic Planning and Budgeting (OSPB) if the ASPB revises the
plan for any project for which monies are appropriated because the ASPB receives land and
water conservation grant funding.
9. Exempts the $10,000,000 ADOA appropriation for capital improvements from individual
review by JCCR.
ADOT Statewide Highway Construction
10. Appropriates $367,709,600 in FY 2024 from the state GF to ADOT for specified highway
projects as follows:
Project Amount
Construct an emergency evacuation bridge in Lake Havasu City $35,500,000
Construct turn lanes along State Route (SR) 95 near Bullhead City $8,000,000
Design a freeway interchange on Interstate 10 (I-10) at Jackrabbit Trail $5,000,000
Design of SR 87 intersection improvements at Arica Road and Shedd Road $700,000
Design work and engineer improvements on SR 85 between mile post 123 and
Maricopa Road
$6,500,000
Distribute to Apache County for SR 264 turn lane construction into the Ganado
senior citizens center and veterans building development area
$538,700
Distribute to Cochise County for Moson Road drainage and safety
improvements between SR 90 and Hereford Road
$6,100,000 FACT SHEET – Enacted
S.B. 1722/H.B. 2812
Page 5
Distribute to Gila County for Houston Mesa Road improvements between SR
260 and .4 miles south of Forest Road 198
$243,600
Distribute to Graham County for intersection reconstruction at Norton Road and
Reay Lane
$500,000
Distribute to Graham County for Safford Bryce Road improvements in the
vicinity of Talley Wash Crossing
$1,781,500
Distribute to Pinal County for engineering and design of the West Pinal
Parkway East-West Corridor
$9,240,000
Distribute to Santa Cruz County for improvements to traffic interchanges at
Interstate 19 (I-19) and Rio Rico Drive and I-19 and Ruby Road
$8,600,000
Distribute to the Canyon Water Improvement District to make improvements to
infrastructure, including fire hydrants and other related water needs
$610,000
Distribute to the City of Coolidge for Coolidge Avenue reconstruction between
Christensen Road and Clemans Road
$5,300,000
Distribute to the City of Douglas for road development and construction
connecting the Douglas international commercial port of entry and SR 80
$8,170,000
Distribute to the City of Eloy for Sunland Gin Road I-10 overpass and road
improvements between I-10 and Arica Road
$5,000,000
Distribute to the City of Globe for Cottonwood Street bridge replacement and
improvements at Pinal Creek
$632,500
Distribute to the City of Globe for Jesse Hayes Road bridge replacement and
improvements at Pinal Creek
$643,200
Distribute to the City of Globe for sidewalk construction along Jesse Hayes
Road and Six Shooter Canyon Road
$3,501,100
Distribute to the City of Phoenix for improvements on Happy Valley Road
between 35th Avenue and 67th Avenue
$12,500,000
Distribute to the City of Phoenix to extend 43rd Avenue between Dove Valley
Road and SR 74
$6,500,000
Distribute to the City of Sierra Vista for Theater Drive corridor improvement
between 7th Street and Carmichael Avenue
$1,800,000
Distribute to the City of Tucson for improvements to the Drexel Road bridge $15,000,000
Distribute to the Navajo Nation for improvements to N9402 Road near Lupton
and Houck
$10,000,000
Distribute to the Town of Cave Creek to study the construction of expanding
lanes along Cave Creek Road between Loop 101 and Carefree Highway
$250,000
Distribute to the Town of Clarkdale to replace the current bridge over Bitter
Creek wash
$6, 321,400
Distribute to the Town of Huachuca City for Skyline Drive reconstruction
between SR 90 and Huachuca City Landfill
$1,565,200
Distribute to the Town of Huachuca City for Skyline Pathway development
along Skyline Drive between Gila Avenue and Edgewood Street
$506,000
Distribute to the Town of Marana for design costs for traffic interchange
between I-10 and Cortaro Road
$10,000,000
Distribute to the Town of Patagonia for McKeown Avenue reconstruction
between Fourth Avenue West and SR 82
$1,500,000 FACT SHEET – Enacted
S.B. 1722/H.B. 2812
Page 6
11. Requires ADOT, within 30 days after the last day of each calendar quarter, to report to JLBC
the projected cost and status of the outlined projects.
12. Requires ADOT to submit a report for review by JCCR, prior to transferring monies between
the outlined projects.
13. Exempts the FY 2024 appropriation of $369,239,400 for state highway construction from
review by the JCCR.
14. Declares the Legislature's intent that the City of Phoenix contribute $14,800,000 to the project
for improvements on Happy Valley Road.
15. Conditions ADOT's distribution of $9,900,000 on whether the Town of Prescott Valley can
demonstrate to ADOT that the Town has a commitment of at least $1,100,000 in matching
monies of gifts, grants and donations for improvements to Glassford Hill Road from sources
other than the state.
16. Deems the $87,500,000 distribution to the Town of Queen Creek as eligible to be used for all
necessary expenses from the current project status until completion.
17. Requires the Town of Queen Creek to collaborate with Pinal County before spending the
$87,500,000 distribution for the project.
18. Appropriates a total of $165,200,000 from the state GF in FY 2024 to ADOT, including:
a) $89,000,000 to widen I-10 between Chandler and Casa Grande; and
b) $76,200,000 to widen I-17 between Anthem and Black Canyon City.
Distribute to the Town of Payson for roundabout construction and
improvements at intersection of Longhorn Road and McLane Road
$1,529,800
Distribute to the Town of Pinetop-Lakeside for Porter Mountain Road
improvements in the vicinity of Blue Ridge elementary school
$2,242,200
Distribute to the Town of Prescott Valley to improve Glassford Hill Road $9,900,000
Distribute to the Town of Queen Creek to extend SR 24, including a
traffic interchange at SR 24 and Ironwood Road
$87,500,000
Distribute to the Town of Superior for Panther Drive bridge design and
construction at Queen Creek
$2,486,700
Distribute to the Town of Thatcher for 8th Street improvements between 1st
Avenue and 20th Avenue
$4,526,400
Distribute to the Town of Winkelman for improvements to Golf Course Road
and Quarelli Street
$1,560,900
Distribute to Yuma County for U.S. Route 95 pavement rehabilitation between
County 22nd Street and County 11th Street
$5,910,400
Improve intersection on SR 347 at Casa Blanca Road and Cement Plant access $18,000,000
Improve SR 260 within Navajo County $4,250,000
Improve SR 83 within Santa Cruz County $9,000,000
Improve the interchange at SR 303 and U.S. Route 60 $4,500,000
Improve U.S. Route 95 between Wellton Mohawk Canal Road and Aberdeen
Road
$33,300,000
Repave U.S. Route 60 between Morristown and Wickenburg $10,500,000 FACT SHEET – Enacted
S.B. 1722/H.B. 2812
Page 7
19. Requires ADOT to use the $89,000,000 an d $76,200,000 appropriations for
construction-related activities, including drawing down federal matching monies for the
projects.
20. Appropriates $444,243,000 from the SHF in FY 2024 to ADOT to:
a) plan and construct state highways;
b) acquire rights-of-way; and
c) provide for the cost of contracted field administration and engineering on construction
projects and debt service payments on bonds issued for highway construction.
21. Exempts the $444,243,000, $89,000,000 and $76,200,000 appropriations from review by the
JCCR.
22. Appropriates balances and collections in the SHF that exceed the amount appropriated by the
FY 2024 General Appropriations Act and the Capital Outlay Budget Reconciliation Act to
ADOT for authorized purposes.
23. Requires ADOT, by November 1, 2023, to report to the Directors of JLBC and OSPB on:
a) ADOT's actual prior year, estimated current year and upcoming budget year highway
construction expenses from all fund sources;
b) capital outlay information for FYs 2023, 2024 and 2025; and
c) ADOT's outstanding debt principal balance at the end of FY 2025 and the estimated debt
service payment amounts for FYs 2025 through 2028.
24. Requires ADOT's highway construction expenses report to:
a) include appropriated monies, federal monies, local agency monies, state highway monies,
bond proceeds and regional area road monies; and
b) be in the same format as the prior year unless the Directors of JLBC and OSPB have
approved modifications.
25. Requires ADOT's reported capital outlay information to be in the same format as tables two,
three and six of the FY 2023 Appropriations Report.
26. Requires ADOT's estimated outstanding debt principal balance and estimated debt service
payments report to include SHF statewide construction bonds, 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.
27. Directs ADOT's estimated outstanding debt principal balance and estimated debt service
payments report to be comparable to the information in the FY 2023 Appropriations Report.
Tribal Highway Construction and Improvements
28. Appropriates $10,000,000 from the state GF in FY 2024 to ADOA to distribute to the Diné
College Board of Regents for capital improvements.
29. Exempts the $10,000,000 appropriation from JCCR review. FACT SHEET – Enacted
S.B. 1722/H.B. 2812
Page 8
ADOT Airport Planning and Development
30. Appropriates $35,000,000 from the State Aviation Fund in FY 2024 to ADOT to plan,
construct, develop and improve state, county, city or town airports as determined by the State
Transportation Board.
31. Exempts the $35,000,000 appropriation for airport planning and development from JCCR
review.
32. Appropriates any balances and collections in the State Aviation Fund that exceed the amount
appropriated by the General Appropriations Act and the Capital Outlay Budget Reconciliation
Act to ADOT in FY 2024 for authorized purposes.
33. Requires ADOT, by December 31, 2023, to report to JLBC Staff on the status of all aviation
grant awards and distributions.
34. Requires the report on aviation grant awards to delineate projects by individual airport and
fiscal year, including any future year commitments.
FY 2023 Appropriations
35. Appropriates $5,000,000 from the state GF in FY 2023 to ADOA for West Adams Street
building renovation projects.
36. Appropriates $54,300,000 from the state GF in FY 2023 to ADOT for pavement rehabilitation
projects that:
a) are not located in Maricopa or Pima County;
b) on roads that are graded as being in fair or poor condition by ADOT; and
c) not contained in ADOT's 2023-2027 Five-Year Transportation Facilities Construction
Program.
37. Exempts the $54,300,000 appropriation from JCCR review.
38. Appropriates $52,090,000 from the state GF in FY 2023 to ADOT to design and construct
additional vehicle lanes, separated by a lighted median, on I-10 between SR 85 and Citrus
Road.
39. Exempts the $52,090,000 appropriation from JCCR review.
40. Appropriates $7,000,000 from the state GF in FY 2023 to ADOT to distribute to the Phoenix-
Mesa Gateway Airport.
41. Exempts the $7,000,000 appropriation to Phoenix-Mesa Gateway Airport from JCCR review.
42. Reallocates $13,000,000 of the $19,000,000 appropriation from the SHF in FY 2023 to ADOT
for the design to widen lanes along SR 347 between I-10 and City of Maricopa as follows:
a) $10,300,000 to ADOT to distribute to the City of Maricopa to design and construct
improvements to SR 238 or SR 347, or both;
b) $2,000,000 to ADOT to distribute to the Gila River Indian Community for transportation
infrastructure; and
c) $700,000 to ADOT for engineering and design costs associated with improvements along
SR 87 near the City of Coolidge. FACT SHEET – Enacted
S.B. 1722/H.B. 2812
Page 9
43. Exempts the reallocated appropriations from:
a) JCCR review; and
b) lapsing until the purpose for which the appropriations were made has been accomplished
or abandoned or the appropriations stand unexpended or unencumbered for a full fiscal
year.
44. Redirects the $1,000,000 appropriation from the state GF in FY 2023 to ADOA to distribute
to the Navajo Nation, rather than Navajo County, to construct a Little Colorado River visitor
center.
45. Increases the appropriation, from $5,000,000 to $8,100,000, from the state GF in FY 2023 to
ADOT to:
a) construct a traffic circle at the intersection of North Lake Powell Boulevard and U.S. Route
89 in Page, Arizona; and
b) install traffic control devices at the intersection of U.S. Route 89 and the road to the
Horseshoe Bend parking lot.
46. Increases the following appropriations from the SHF in FY 2023 to ADOT for highway
projects:
a) from $1,645,000 to $1,823,000, to repave SR 69 in Prescott Valley;
b) from $8,750,000 to $24,000,000 to construct an overpass at Riggs Road and SR 347;
c) from $16,330,000 to $18,981,000, to rehabilitate pavement along U.S. Route 191 between
Armory Road and East Safford;
d) from $1,500,000 to $8,022,500, to construct a roundabout at the intersection of SR 69 and
SR 169; and
e) from $568,000 to $1,085,000, to install lighting on the Sentinel exit in Gila Bend.
47. Reduces the following appropriations from the SHF in FY 2023 to ADOT for highway
projects:
a) from $64,200,000 to $60,910,000, to design and construct additional vehicle lanes,
separated by a lighted median, on I-10 between SR 85 and Citrus Road;
b) from $39,200,000 to $38,620,000, to rehabilitate pavement along SR 90 between Campus
Drive and the U.S. Border Patrol Station in Huachuca City;
c) from $3,000,000 to $600,000, to design traffic interchange on SR 89 at SR 89A;
d) from $19,534,600 to $13,373,000, to repave SR 95 in Mohave County;
e) from $1,464,100 to $1,455,000, to repair SR 186 and State Business Route 10 in Willcox;
and
f) from $3,710,000 to $3,300,000, to improve SR 90 from Moson Road to Campus Drive.
48. Removes the following appropriations from the SHF in FY 2023 to ADOT for highway
projects:
a) $6,142,800 to construct and improve former SR 279;
b) $3,500,000 to improve U.S. Route 95 near Yuma Proving Ground; and
c) $2,625,000 for the final design plan, right-of-way and easements for an overpass at Riggs
Road and SR 347.
49. Repeals the FY 2023 appropriation of $25,000,000 from the state GF to ADOT for the Loop
101 slip ramp access project. FACT SHEET – Enacted
S.B. 1722/H.B. 2812
Page 10
50. Exempts the $1,800,000 appropriation to DEMA for additional construction monies for the
Tucson readiness center from lapsing.
FY 2022 Appropriations
51. Exempts the following FY 2022 appropriations from lapsing until June 30, 2024:
a) $24,200,000 to ADOA for ADOA building renewal;
b) $1,215,800 to AZGFD for AZGFD building renewal;
c) $2,800,000 to ADOA to demolish the state-owned buildings located at 1601 West Jefferson
Street and 1645 West Jefferson Street and convert the building's physical plant to provide
service to 1535 West Jefferson Street;
d) $3,500,000 to ADOA to replace capitol mall air handler units at the House of
Representatives and Senate buildings;
e) $1,000,000 to the Arizona Exposition and State Fair Board for capital improvements;
f) $1,000,000 to the Arizona Exposition and State Fair Board for replacement of the fire alarm
system in the Arizona Veterans Memorial Coliseum building on the state fairgrounds;
g) $2,500,000 to the Arizona Department of Juvenile Corrections to replace doors in four
units at the Adobe Mountain School facility;
h) $2,396,700 to ASPB for capital improvements;
i) $126,000 to ASPB to replace the fire suppression system at Red Rock State Park;
j) $750,000 to ASPB to construct a new day-use park at the Rockin' River Ranch State Park;
k) $353,100 to the Arizona Pioneers' Home for capital improvements; and
l) $3,150,000 to ADOT to construct new maintenance facilities in Wickenburg.
52. Exempts, from lapsing until June 30, 2025, the $25,564,400 appropriation to ADCRR in FY
2022 for fire and life safety upgrades at the Eyman State Prison Complex.
FY 2021 Appropriations
53. Modifies the following appropriations from the state GF in FY 2021 to ADOT for highway
projects by:
a) removing the $10,000,000 appropriation to improve U.S. Route 95 near Yuma Proving
Ground; and
b) increasing the appropriation, from $13,600,000 to $15,807,500, to rehabilitate pavement
along SR 77 near Oro Valley.
54. Requires ADOT, before transferring monies between FY 2021 highway projects, to submit a
report for review by the JCCR.
FY 2020 Appropriations
55. Exempts, from lapsing until June 30, 2023, the $4,600,000 appropriation to ADOT in FY 2020
to construct new maintenance facilities in Wickenburg.
Miscellaneous
56. Appropriates $12,500,000 from the state GF in FY 2024 to the State Match Advantage for
Rural Transportation Fund. FACT SHEET – Enacted
S.B. 1722/H.B. 2812
Page 11
57. Allows ADOA to spend up to five percent of all capital outlay appropriations that are
distributed to state agencies by ADOA for expenditures for project management of building
renewal and capital projects.
58. Prohibits ADOA from spending any other capital outlay appropriations:
a) on personal services or employee-related expenditures; or
b) for maintenance contracts on building components and equipment without review by
JCCR.
59. Prohibits all other capital outlay appropriations from being spent for personal services or
employee-related expenditures of state employees, excluding services provided as part of the
Inmate Construction Program for correctional facilities.
60. Makes technical and conforming changes.
61. Becomes effective on signature of the Governor.
Senate Action House Action
APPROP 5/9/23 DP 6-4-0 APPROP 5/9/23 DP 10-5-0-0
3
rd
Read 5/10/23 25-5-0 3
rd
Read 5/10/23 47-12-0-0-1
(S.B. 1722 was substituted for H.B. 2812 on 3
rd
Read)
Signed by the Governor 5/11/23
Chapter 135
Prepared by Senate Research
May 23, 2023
KJA/sr