AZ SB1096

Amends Arizona Revised Statutes Title 35 by adding Chapter 1.1 to establish procedures for appropriating noncustodial federal monies.

Defines "noncustodial federal monies" as federal funds designated as block grants, general revenue sharing, or funds providing the state broad spending authority, but excludes funds awarded to universities, the Department of Emergency and Military Affairs, and school districts or community colleges.

Requires budget units receiving noncustodial federal monies to maintain separate accounts or funds for accounting, budgeting, and auditing purposes.

Grants the legislature authority to appropriate noncustodial federal monies; if the legislature does not appropriate specific funds, the budget unit with lawful authority may spend the monies pursuant to federal and state law.

Allows the legislature to make lump sum appropriations for unanticipated federal monies, with budget units required to submit proposed expenditures to the Joint Legislative Budget Committee for review before spending; effective December 31, 2022.