AZ SB1807

Allows any state legislator to file a complaint with the Attorney General alleging a county, city, or town spent a legislative appropriation for an unauthorized purpose

Authorizes the Attorney General to bring legal action to enjoin illegal expenditure of public monies and recover illegally spent funds, which would be returned to the original appropriation fund

Requires the State Treasurer to withhold and redistribute state shared revenues from non-compliant local governments until misspent public monies are fully recovered, based on Attorney General notification

Creates an exception preventing withholding of funds that local governments certify as necessary for debt service on bonds or long-term obligations issued before the violation occurred

Amends encumbrance document rules so that once a purchase order is completed, the encumbered funds remain held until authorized for release, regardless of standard appropriation lapsing provisions