Official Summary Text
HB2148 - 572R - Senate Fact Sheet
Assigned to
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COMMITTEE
ARIZONA STATE SENATE
Fifty-Seventh
Legislature, Second Regular Session
FACT SHEET FOR
H.B. 2148
noncustodial federal
monies; appropriation
Purpose
Effective
January 1, 2028, authorizes the Legislature to appropriate noncustodial federal
monies.
Background
The Legislature currently does not appropriate federal
monies, except for a limited number of block grants and federal funds by the
Department of Economic Security. There are two categories of federal monies
that come to Arizona: 1) custodial monies that do not provide the state any
discretion for disbursement, including university research grants, Social
Security payments and Medicare benefits; and 2) noncustodial monies which
include grants, block grants and general revenue sharing monies designated by
the federal government to allow the state discretion in the development,
implementation and operation of a program.
There is no anticipated fiscal impact to the state General Fund
associated with this legislation.
Provisions
1.
Defines
non-custodial federal monies
as federal monies that meet
one of the following criteria:
a)
are designated by the federal government as block grant monies;
b)
are
designated by the federal government as general revenue sharing monies;
c)
provides
the state with broad authority to make spending decisions to develop, implement
or operate a program or service; or
d)
are
considered essential to meet total spending obligations of a federally matched
program.
2.
Excludes, from the definition of
noncustodial federal monies
,
federal monies or research grants awarded to the universities, the Arizona
Board of Regents and the Department of Emergency and Military Affairs.
3.
Requires a budget unit that receives noncustodial federal monies to
account for the monies in separate accounts or funds as necessary to meet
accounting, budgeting and auditing requirements.
4.
Allows the Arizona Department of Administration to use necessary fiscal
safeguards and the most efficient system of accounts and records.
5.
States that the Legislature has the authority to appropriate
noncustodial federal monies.
6.
Requires the budget unit, if the Legislature does not appropriate
non-custodial federal monies, to administer and spend, unexpended monies from a
particular fund, specific grant program or a block of noncustodial federal
monies according to state and federal law.
7.
Requires the Legislature to specify, in each noncustodial federal monies
appropriation, the purposes for which the monies are to be used.
8.
Allows the Legislature, for the purposes of obtaining expenditure
authority for unanticipated noncustodial federal monies while the Legislature
is not in session, to make a lump sum appropriation.
9.
Requires a budget unit, before spending monies from the lump sum
appropriation, to submit the proposed expenditure to the Joint Legislative
Budget Committee for review.
10.
Requires the
appropriation of noncustodial federal monies to be reduced to the amount of the
monies received if the amount received is less than the amount appropriated.
11.
Specifies
that, if the amount of the noncustodial federal monies received is more than
the amount appropriated, the total appropriation of federal and state monies
for a program to remain at the amount appropriated by the Legislature.
12.
Requires
the State Treasurer to credit the excess noncustodial federal monies to the
appropriate budget unit.
13.
Defines
budget unit
as any department, commission, board, institution or other
agency of this state receiving, expending or disbursing state monies or
incurring obligations against the state.
14.
Becomes
effective on January 1, 2028.
House Action
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Prepared by Senate Research
February 26, 2026
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Current Bill Text
Read the full stored bill text
HB2148 - 572R - H Ver
House Engrossed
noncustodial federal
monies; appropriation
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
HOUSE BILL 2148
AN
ACT
Amending Title 41, chapter 49, Arizona
Revised Statutes, by adding article 2; relating to federal monies.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 41, chapter 49, Arizona
Revised Statutes, is amended by adding article 2, to read:
ARTICLE
2. APPROPRIATION OF FEDERAL MONIES
START_STATUTE
41-4921.
Definitions
In this article, unless the context otherwise
requires:
1. "Budget unit" has the
same meaning prescribed in section 35-101.
2. "Noncustodial federal
monies":
(
a
) Means
federal monies that meet one of the following criteria:
(
i
) Are
designated by the federal government as block grant monies.
(
ii
) Are
designated by the federal government as general revenue sharing monies.
(
iii
) Provide
this state with broad authority to make spending decisions regarding
developing, implementing or operating a program or service.
(
iv
) Are considered
essential to meet total spending obligations of a federally required or matched
program or service authorized by the legislature in which the federal
government requires at least one percent of the program or service funding to
come from this state.
(
b
) Does not
include
:
(
i
) federal
monies for use by the department of emergency and military affairs.
(
ii
) Federal
monies or research grants that are awarded to universities, university
employees or the Arizona board of regents for and on behalf of the universities
under jurisdiction of the Arizona board of regents.
END_STATUTE
START_STATUTE
41-4922.
Receipt of noncustodial federal monies; accounting
A budget unit that receives noncustodial federal
monies shall account for the noncustodial federal monies in separate accounts
or funds as necessary to meet accounting, budgetary and auditing
requirements. The department of administration may use the most
efficient system of accounts and records, consistent with legal requirements
and standards, and necessary fiscal safeguards.
END_STATUTE
START_STATUTE
41-4923.
Appropriation of
federal monies; legislative powers and duties
A. The legislature retains the
authority to appropriate noncustodial federal monies. If the
legislature does not make an appropriation for either a particular fund, a
specific grant program or a block of noncustodial federal monies, the budget
unit that has lawful authority shall administer and spend these monies pursuant
to federal and state law.
B. The legislature shall specify in
each noncustodial federal monies appropriation the purposes for which the
noncustodial federal monies are to be used, consistent with federal
law. For the purposes of obtaining expenditure authority for
unanticipated noncustodial federal monies that may become available when the
legislature is not in session, the legislature may make a lump sum
appropriation. Before spending monies from the lump sum
appropriation, the budget unit shall submit the proposed expenditure to The
joint legislative budget committee for review, subject to any condition
specified by the legislature.
C. If the amount of the noncustodial
federal monies received is less than the amount appropriated, the appropriation
of noncustodial federal monies shall be reduced to the amount of the
noncustodial federal monies received. The activities financed by the
noncustodial federal monies shall be reduced proportionately.
D. If the amount of the noncustodial
federal monies received is more than the amount appropriated, the total
appropriation of federal and state monies allocated for a program or service
shall remain at the amount designated by the legislature. The state
treasurer shall credit the excess noncustodial federal monies to the
appropriate budget unit account.
END_STATUTE
Sec. 2.
Effective date
This act is effective from and after
December 31, 2027.