AZ SB1488

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

Defines "noncustodial federal monies" as block grants, revenue sharing, funds providing broad spending authority, or funds required for federally-matched programs; excludes university research grants, military affairs funds, and school district/community college funds.

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

Grants legislature authority to appropriate noncustodial federal monies; if not appropriated, budget units may administer funds per federal and state law; allows lump sum appropriations for unanticipated federal monies when legislature not in session, subject to joint legislative budget committee review.

Reduces appropriations proportionately if federal monies received are less than appropriated; credits excess federal monies to appropriate budget unit account if more is received than appropriated; effective December 31, 2014.