AZ SB1561

Adds Chapter 1.1 to Title 35, Arizona Revised Statutes, establishing procedures for appropriating federal monies to state agencies.

Defines "noncustodial federal monies" as block grants, general revenue sharing funds, or federal monies that give the state broad spending authority over program development and operation.

Requires all noncustodial federal monies received by state budget units to be accounted for in separate accounts and funds meeting accounting, budgetary, and auditing requirements.

Grants the legislature authority to appropriate noncustodial federal monies; if the legislature does not appropriate specific federal funds, the responsible budget unit may administer and spend them under federal and state law.

Provides that if federal monies received fall short of appropriated amounts, the appropriation and activities shall be reduced proportionately; if federal monies exceed the appropriation, excess funds are credited to the appropriate budget unit account while total appropriation remains at the legislatively designated amount.