AZ HB2500

Adds Chapter 1.1 to Title 35 of Arizona Revised Statutes to establish procedures for appropriating federal monies received by state agencies.

Defines "noncustodial federal monies" as federal funds that are block grants, general revenue sharing, provide broad spending authority, or are essential for matching federally required programs (excluding university research grants, military affairs funds, and direct school/community college awards).

Requires all noncustodial federal monies to be accounted for in separate accounts or funds and grants the Department of Administration authority to establish efficient accounting systems consistent with legal requirements.

Retains legislative authority to appropriate noncustodial federal monies, with agencies authorized to administer and spend unappropriated funds according to federal and state law.

Allows the legislature to make lump sum appropriations for unanticipated federal monies when not in session, subject to advance review by the joint legislative budget committee, and adjusts appropriations proportionately if federal monies received differ from amounts appropriated.