SB 1097 Summary

• Adds Arizona Revised Statutes Chapter 1.1 to establish procedures for appropriating noncustodial federal monies (block grants, revenue sharing, and funds providing broad spending authority).

• Excludes from noncustodial federal monies definition: university research grants, Department of Emergency and Military Affairs funds, and monies awarded directly to school districts or community colleges.

• Requires budget units receiving noncustodial federal monies to maintain separate accounts consistent with accounting, budgeting, and auditing requirements.

• Grants legislature authority to appropriate noncustodial federal monies; if legislature does not appropriate, the budget unit with lawful authority administers and spends the monies under federal and state law.

• Requires Joint Legislative Budget Committee review of proposed expenditures from lump sum appropriations made for unanticipated noncustodial federal monies when legislature is not in session; effective December 31, 2022.