HB 2814 Summary

• Adds Article 2 to Title 41, Chapter 49 of Arizona Revised Statutes to establish a framework for handling noncustodial federal monies received by state budget units.

• Defines "noncustodial federal monies" as federal funds designated as block grants, general revenue sharing, funds providing broad spending authority, or funds essential for federally-matched programs requiring at least 1% state funding; excludes federal monies for universities, military affairs, school districts, and community colleges.

• Requires budget units receiving noncustodial federal monies to account for them in separate accounts or funds to meet accounting, budgetary, and auditing requirements.

• Retains legislative authority to appropriate noncustodial federal monies and allows lump sum appropriations for unanticipated funds; if the legislature does not appropriate, the budget unit with lawful authority may spend according to federal and state law.

• Effective December 31, 2026.