AZ HB2756

Prohibits cities and towns from reducing the annual operating budget for municipal police departments below the previous year's budget amount.

Requires cities and towns that reduce law enforcement budgets to notify the state treasurer, which then withholds state shared revenues equal to the reduction amount under sections 42-5029 and 43-206.

Withheld state funds continue until the city or town restores the law enforcement budget reduction, with exceptions for debt service on bonds issued before the reduction.

Exempts cities and towns from this requirement if they lack sufficient funds to maintain the previous year's law enforcement budget level.

Defines "law enforcement agency" as a municipal police department for purposes of this law.