REFERENCE TITLE: public resources; expenditures; prohibition State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session 2025 HB 2722 Introduced by Representatives Carter N: Blackman, Kupper, Willoughby An Act amending title 1, chapter 5, Arizona Revised Statutes, by adding article 2; relating to public resources. (TEXT OF BILL BEGINS ON NEXT PAGE)
REFERENCE TITLE: public resources; expenditures; prohibition
State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session 2025
HB 2722
Introduced by Representatives Carter N: Blackman, Kupper, Willoughby
REFERENCE TITLE: public resources; expenditures; prohibition
State of Arizona
House of Representatives
Fifty-seventh Legislature
First Regular Session
2025
HB 2722
Introduced by
Representatives Carter N: Blackman, Kupper, Willoughby
An Act
amending title 1, chapter 5, Arizona Revised Statutes, by adding article 2; relating to public resources.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona: Section 1. Heading change The chapter heading of title 1, chapter 5, Arizona Revised Statutes, is changed from "PUBLIC PROGRAMS" to "PUBLIC RESOURCES". Sec. 2. Title 1, chapter 5, Arizona Revised Statutes, is amended by adding article 2, to read: ARTICLE 2. LIMIT ON PUBLIC ENTITY EXPENDITURES START_STATUTE1-551. Definitions in this article, unless the context otherwise requires: 1. "Consideration": (a) Means an exchange for goods, services or money that is proportional, direct, ascertainable and contractually obligatory. (b) Does not include indirect benefits that are speculative or anticipatory. 2. "Control" means that the public entity maintains strict and continuing authority over the public expenditure, loan or use of public resources to ensure that the public purpose of the expenditure, loan or use of public resources is accomplished. 3. "Public entity" includes this state, any agency or unit of state government and any city, town, county, school district or other political subdivision of this state and shall be broadly construed. 4. "Public purpose": (a) Means an activity that is directly related to a function of government and for which the primary beneficiary is the public as a whole and not a private entity. (b) Does not include providing subsidies, grants, loans or other aid to private businesses, individuals or entities for the purposes of economic development. 5. "Public resources" includes all revenue, real property and other assets owned and controlled by a public entity and shall be broadly construed. END_STATUTE START_STATUTE1-552. Limit on public entity expenditures A public entity may not spend, loan or allow the use of public resources or use the public entity's taxing power in aid of any individual, association, corporation or other private party unless the expenditure, loan or use of public resources is for a public purpose, is supported by consideration and the public entity exercises continuing control over the expenditure, loan or use of public resources. END_STATUTE START_STATUTE1-553. Enforcement A. The attorney general or a taxpayer in this state may file an action in a court of general jurisdiction to challenge an expenditure, loan or use of public resources. B. In an action filed pursuant to subsection A of this section, the plaintiff shall prevail if the court finds by a preponderance of evidence that any of the following applies: 1. The challenged expenditure, loan or use of public resources does not advance a public purpose. 2. The challenged expenditure, loan or use of public resources is not supported by consideration. 3. The public entity failed to maintain control over the expenditure, loan or use of public resources. END_STATUTE Sec. 3. Short title This act may be cited as the "Taxpayer Protection Act".
Be it enacted by the Legislature of the State of Arizona:
Section 1. Heading change
The chapter heading of title 1, chapter 5, Arizona Revised Statutes, is changed from "PUBLIC PROGRAMS" to "PUBLIC RESOURCES".
Sec. 2. Title 1, chapter 5, Arizona Revised Statutes, is amended by adding article 2, to read:
ARTICLE 2. LIMIT ON PUBLIC ENTITY EXPENDITURES
START_STATUTE1-551. Definitions
in this article, unless the context otherwise requires:
1. "Consideration":
(a) Means an exchange for goods, services or money that is proportional, direct, ascertainable and contractually obligatory.
(b) Does not include indirect benefits that are speculative or anticipatory.
2. "Control" means that the public entity maintains strict and continuing authority over the public expenditure, loan or use of public resources to ensure that the public purpose of the expenditure, loan or use of public resources is accomplished.
3. "Public entity" includes this state, any agency or unit of state government and any city, town, county, school district or other political subdivision of this state and shall be broadly construed.
4. "Public purpose":
(a) Means an activity that is directly related to a function of government and for which the primary beneficiary is the public as a whole and not a private entity.
(b) Does not include providing subsidies, grants, loans or other aid to private businesses, individuals or entities for the purposes of economic development.
5. "Public resources" includes all revenue, real property and other assets owned and controlled by a public entity and shall be broadly construed. END_STATUTE
START_STATUTE1-552. Limit on public entity expenditures
A public entity may not spend, loan or allow the use of public resources or use the public entity's taxing power in aid of any individual, association, corporation or other private party unless the expenditure, loan or use of public resources is for a public purpose, is supported by consideration and the public entity exercises continuing control over the expenditure, loan or use of public resources. END_STATUTE
START_STATUTE1-553. Enforcement
A. The attorney general or a taxpayer in this state may file an action in a court of general jurisdiction to challenge an expenditure, loan or use of public resources.
B. In an action filed pursuant to subsection A of this section, the plaintiff shall prevail if the court finds by a preponderance of evidence that any of the following applies:
1. The challenged expenditure, loan or use of public resources does not advance a public purpose.
2. The challenged expenditure, loan or use of public resources is not supported by consideration.
3. The public entity failed to maintain control over the expenditure, loan or use of public resources.
END_STATUTE
Sec. 3. Short title
This act may be cited as the "Taxpayer Protection Act".