AZ HB2400

Adds Chapter 1.1 to Title 35, Arizona Revised Statutes to establish procedures for appropriating federal monies received by state budget units.

Defines "noncustodial federal monies" as block grants, revenue sharing funds, or federal funds that give the state broad authority over spending decisions, excluding university research grants, military affairs funds, and school district or community college allocations.

Requires all noncustodial federal monies to be accounted for in separate accounts or funds to meet accounting, budgetary, and auditing requirements.

Retains legislative authority to appropriate federal monies; if the legislature does not appropriate funds, budget units may administer and spend them pursuant to federal and state law.

Provides that if received federal monies exceed appropriated amounts, excess funds are credited to the appropriate budget unit account, while shortfalls reduce program activities proportionately.