biennial budget

HB2554 - 572R - I Ver

REFERENCE TITLE:
biennial budget

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 2554

Introduced by

Representatives
Chaplik: Biasiucci, Carter N, Fink, Gillette, Heap, Hendrix, Keshel,
Marshall, Martinez, Olson, Pingerelli, Wilmeth

AN
ACT

Amending sections 35-111, 35-113,
35-114, 35-115, 35-116, 35-118, 35-121, 35-122,
38-737, 41-723, 41-792.01, 41-793 and 41-1273,
Arizona Revised Statutes; relating to state budget procedures.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 35-111, Arizona Revised Statutes,
is amended to read:

START_STATUTE
35-111.

Executive budget

Not later than five days after the
first
regular
session of the legislature convenes, the governor shall submit to the
legislature a budget containing a complete plan of expenditures proposed to be
made before the close of the next
two ensuing
fiscal
year

years
for budget units and all monies
and revenues estimated to be available therefor, together with an explanation
of the basis of the estimates and recommendations as to proposed legislation,
if any, that the governor deems necessary to provide revenues sufficient to
meet the proposed expenditures.
The plan shall
delineate each fiscal year separately.

END_STATUTE

Sec. 2. Section 35-113, Arizona Revised
Statutes, is amended to read:

START_STATUTE
35-113.

Submission of budget estimates

The administrative head of each budget unit, not later than
September 1 of each
even-numbered
year or at a
later date not to exceed thirty days after September 1 if approved by the
director of the governor's office of strategic planning and budgeting, shall
submit to the governor, with two copies, estimates of the financial
requirements and of receipts, including appropriated and nonappropriated monies
in no less detail than the state general fund, of the budget unit for the next
two ensuing
fiscal
year

years
. The
estimates shall include a detailed estimate of the cost to the budget unit in
the next
two ensuing
fiscal
year

years
attributable to a county's, city's or town's
establishment of a minimum wage if that minimum wage exceeds the minimum wage
established by this state pursuant to section 23-363. The
estimates shall be on the forms and in the manner prescribed by the governor
with explanatory data that may be required, together with additional
information the head of the budget unit desires to submit. The
estimates submitted shall bear the approval of the administrative head of the
budget unit.
END_STATUTE

Sec. 3. Section 35-114, Arizona Revised
Statutes, is amended to read:

START_STATUTE
35-114.

Continuous financial planning; submission of tentative budget
report; appropriations estimate report

A. The governor shall have in continuous process of
preparation and revision a tentative budget report for the next
two
ensuing
fiscal
year

years
for
budget units. On receipt of the estimates of the several budget
units, the governor shall check the estimates with information available to the
governor and shall make further inquiries and investigations and recommend
changes in the tentative budget report the governor deems warranted.

B. The governor's office of strategic planning and
budgeting in consultation with the joint legislative budget committee staff
shall determine and report to the governor and the legislature an estimate of
appropriations subject to the limit imposed by article IX, section 17,
Constitution of Arizona. The report shall be published by February
15 of each
odd-numbered
year for the preceding
fiscal year, for the current fiscal year and for the
next two
ensuing
fiscal
year
years
to reflect the
budget recommendations of the governor.
END_STATUTE

Sec. 4. Section 35-115, Arizona Revised
Statutes, is amended to read:

START_STATUTE
35-115.

Contents of budget report

Each budget report required by section 35-114 shall
include the following:

1. Summary statements of the financial condition of
the state, including:

(a) A consolidated balance sheet showing all current
assets and liabilities of the state at the close of the fiscal year last
concluded.

(b) Summary statements of the actual income and
expenditures of the fiscal year last concluded.

(c) Similar summary statements of estimated fund
balances for the current fiscal year.

2. Schedules showing actual income from each source
for the preceding fiscal year and the estimated income of the current fiscal
year and for the next
two ensuing
fiscal
year

years
for budget units.� The statements of income and
estimated income shall be itemized by source, by budget units and sources and
by funds and shall show separately revenue from nonrevenue, all detailed by
sources.

3. Detailed comparative statements of expenditures
and requests for appropriations by funds, budget units, budget programs and
budget classes, showing the expenditures for the fiscal year last concluded,
the estimated expenditures for the current year, the request of each budget
unit and the governor's recommendations for appropriations for the next
two ensuing
fiscal
year

years

for budget units, all distributed according to budget programs and budget
classes. In connection with each expenditure involving construction
projects to be completed in one or more fiscal years, the budget report shall
show the total estimated cost of each project and the amount recommended to be
appropriated and expended in each ensuing fiscal year until completion of the
project. The state capital improvement plan and the governor's
recommendations concerning the plan shall be incorporated into the budget
report.

4. A summary statement for each fund of the cash
resources estimated to be available at the beginning of the next
two ensuing
fiscal
year

years

for budget units and the estimated cash receipts for the next
two
ensuing
fiscal
year

years
for
budget units, as compared with the total recommended amounts for appropriations
for all budget programs and budget classes for the next
two
ensuing
fiscal
year

years
for
budget units.� If the total of the recommended expenditures exceeds the total
of the estimated resources, the summary statement shall include recommendations
as to how the deficiency is to be met and estimates of receipts from any
proposed additional revenues.

5. A summary statement of expenditures and full-time
equivalent positions for each retirement system, delineated by fund source.

6. Each
two ensuing
fiscal
year

years
for budget units, a delineation
of requested expenditures for administrative costs, including administrative
personnel salaries and employee-related expenses and direct, indirect and
shared costs for administrative office space, equipment, supplies and overhead.�
For the purposes of this paragraph, "administrative" means any
supportive activity relating to management, supervision, budget or execution of
the affairs of the budget unit as distinguished from activities relating to the
budget unit's primary direct service functions. The process of
delineation and determination of what constitutes administrative costs for each
budget unit shall be developed by the governor's office of strategic planning
and budgeting in consultation with the director and staff of the joint
legislative budget committee.

7. A summary on one page or less providing selected
performance measures of the budget unit for the previous fiscal year and the
budget years. The performance measures may be expressed as service
level measures on a unit cost basis and shall be established by the governor's
office of strategic planning and budgeting in consultation with the director
and staff of the joint legislative budget committee.
END_STATUTE

Sec. 5. Section 35-116, Arizona Revised
Statutes, is amended to read:

START_STATUTE
35-116.

Supervisory powers of governor relating to budget report;
exceptions

A. Prior to submission of the budget report to the
legislature, the governor shall examine the statements and estimates and shall
make or cause to be made further investigations, with hearings before the
governor, or the governor's designee, and shall make changes or revisions in
appropriations requested that the governor deems advisable.

B. The legislature shall not be subject to the
control of the governor in the preparation and submission of budgets, but shall
submit its requests for appropriations for the two ensuing fiscal years to the
governor for review by the legislature.

C. The judiciary shall not be subject to the control
of the governor in the preparation and submission of budgets, but shall submit
its requests for appropriations for the
two
ensuing
fiscal
year

years
to the governor
for review by the legislature.

D. The appropriation requests of the Arizona board
of regents and the department of transportation for the
two
ensuing
fiscal
year

years
may be revised by
the governor, but the governor shall also submit the appropriation request
prepared and submitted by the budget unit in its original form to the
legislature for review.
END_STATUTE

Sec. 6. Section 35-118, Arizona Revised
Statutes, is amended to read:

START_STATUTE
35-118.

Transmission of budget report to legislature

The governor shall have the budget report prepared in such
number of copies as
he

the governor
deems
necessary, and copies
thereof

of the budget
report
shall be transmitted to the legislature not later than five days
after the
first
regular session of the legislature
convenes.
END_STATUTE

Sec. 7. Section 35-121, Arizona Revised
Statutes, is amended to read:

START_STATUTE
35-121.

Format of appropriations

The format of the appropriations for the support and
maintenance of state departments and institutions shall be for
each

two ensuing
fiscal
year

years
for all budget units
, itemized separately
for each fiscal year
.
END_STATUTE

Sec. 8. Section 35-122, Arizona Revised
Statutes, is amended to read:

START_STATUTE
35-122.

Budget unit program lists; strategic plans; operating plans;
compilation and publishing of master list

A. Consistent with instructions issued by the
governor, the administrative head of each budget unit is responsible for
developing a list of programs for the budget unit. For the purposes
of this section, a program may include a subprogram as determined by the
governor's office of strategic planning and budgeting and the staff of the
joint legislative budget committee. In consultation with the staff
of the joint legislative budget committee, the governor's office of strategic
planning and budgeting may modify the list of programs submitted by each budget
unit.

B. Consistent with instructions issued by the
governor, the administrative head of each executive branch budget unit is
responsible for developing a five-year strategic plan for the budget
unit. The strategic plan shall be updated
annually

once every two years
. The plan shall contain
strategic issues, a mission statement, a description, strategies and resource
assumptions. The resource assumptions shall include the number of
full-time equivalent positions and budgetary data, including all funding
sources categorized by state general fund, other appropriated funds,
nonappropriated funds and federal funds that are required to support the
strategic plan. The agency shall also provide an executive summary
of the strategic plan. The executive summary shall not exceed five
pages in length. The strategic plan, including the executive
summary, shall be posted on the agency's official internet website and
submitted to the governor's office of strategic planning and budgeting and to
the staff of the joint legislative budget committee on or before January 1 of
each
odd-numbered
year.

C. Consistent with instructions issued by the
governor, the administrative head of each budget unit is responsible for:

1. Developing an operating plan for each program
identified in subsection A of this section. The plan shall use the
format required in subsection D of this section and be submitted to the
governor's office of strategic planning and budgeting on or before September 1
of each
even-numbered
year. Each budget
unit shall
annually

once every two years

submit performance measures and budgetary data for the prior, current and
two
ensuing fiscal years.

2. Developing a mission statement, a description and
strategic issues for the entire budget unit as part of the operating plan to be
submitted to the governor's office of strategic planning and budgeting on or
before September 1 of each
even-numbered
year. The
mission statement, description and strategic issues shall be submitted at the
same time to the staff of the joint legislative budget committee.

D. The operating plan shall include a mission
statement, a description, goals, performance measures that emphasize results
and budgetary data. The budgetary data shall include funding
amounts, regardless of source.

E. The governor's office of strategic planning and
budgeting shall compile the submissions required in subsection C, paragraphs 1
and 2 of this section and, not later than five days after the regular session
of the legislature convenes of each even-numbered year, shall publish a
master list of programs that are performed or overseen by state
government. The master list shall include the program description,
agency description, mission statement, strategic issues, goals, performance
measures and budgetary data.
END_STATUTE

Sec. 9. Section 38-737, Arizona Revised
Statutes, is amended to read:

START_STATUTE
38-737.

Employer contributions; prepayment; definitions

A. Employer contributions shall be a percentage of
compensation of all employees of the employers who meet the eligibility
requirements contained in this article, excluding the compensation of those
employees who are members of the defined contribution program administered by
ASRS, as determined by the ASRS actuary pursuant to this section for June 30 of
the fiscal year immediately preceding the preceding fiscal year, except that
beginning with fiscal year 2001-2002 the contribution rate shall not be
less than two percent of compensation of all employees of the
employers. Beginning July 1, 2011 through June 29, 2016, the total
employer contribution shall be determined on the projected unit credit
method. Beginning June 30, 2016, the board shall determine the
actuarial cost method pursuant to section 38-714. The total
employer contributions shall be equal to the employer normal cost plus the
amount required to amortize the past service funding requirement over a period
that is determined by the board and consistent with generally accepted
actuarial standards.

B. All contributions made by the employer and
allocated to the fund established by section 38-712 are irrevocable and
shall be used as benefits under this article or to pay expenses of ASRS.

C. The required employer contributions shall be
determined on
an annual

a biennial

basis by an actuary who is selected by the board and who is a fellow of the
society of actuaries. ASRS shall provide by December 1 of each
fiscal

even-numbered
year to the
governor, the speaker of the house of representatives and the president of the
senate the contribution rate for the ensuing
two
fiscal
year

years
and the unfunded actuarial
accrued liability, the funded status based on the actuarial value of assets and
market value of assets and the annualized rate of return and the ten-year
rate of return as of June 30 of the prior fiscal year.

D. Notwithstanding any other provision of this
article, an employer may prepay the employer's 401(a) pension contributions
directly to ASRS according to a written agreement between the employer and ASRS
as follows:

1. 401(a) pension contributions that the employer
prepays according to this subsection may be deposited, as determined by the
employer and managed by ASRS, directly in either the ASRS trust fund
established by section 38-712 or a section 115 trust.

2. ASRS shall determine the following options
available to the employer:

(a) The amortization time periods.

(b) The frequency and dates that prepayments can be
made.

(c) The maximum and minimum amounts of 401(a)
pension contributions that the employer can prepay.

(d) Any other options or obligations that the
employer may have when entering into this written agreement.

3. The earnings accrual rate shall be the ASRS total
401(a) pension fund rate of return, or the actual rate of return of a
short-term investment through ASRS, as requested by the employer and agreed to
by ASRS.

4. The 401(a) pension contributions the employer
prepays and the accrued earnings shall be managed at the discretion of ASRS
subject to section 38-718.

5. 401(a) pension contributions that the employer
prepays and accrued earnings may be used solely to reduce the employer's future
401(a) pension contributions as required from the employer pursuant to this
section and section 38-735.

6. The employer shall determine when to use the
401(a) pension contributions the employer prepays and the accrued earnings from
those 401(a) pension contributions.�

7. ASRS shall provide the employer an annual
statement of 401(a) pension contributions the employer prepaid and the accrued
earnings.

8. Notwithstanding any other provision of this
subsection, an employer may not prepay 401(a) pension contributions according
to this subsection either:

(a) In an amount greater than the employer's net
pension liability as reflected by ASRS in its most recent applicable
governmental accounting standards report.

(b) After the total of the unamortized prepaid
401(a) pension contributions and the accrued earnings is equal to or greater
than the employer's net pension liability as reflected by ASRS in its most
recent applicable governmental accounting standards report.

9. After an employer elects amortization terms, ASRS
shall provide the employer an amortization schedule annually that is current
and based on the employer's election.

10. If ASRS determines to no longer offer the option
of prepaying the employer's 401(a) pension contributions directly to ASRS, any
401(a) pension contributions the employer prepays and the accrued earnings
remaining on account shall be used for future obligations according to the
written agreement between the employer and ASRS.

11. Assets transferred in or out of or held in the
ASRS trust fund established by section 38-712, or a section 115 trust,
and the accrued earnings are exempt from state, county and municipal taxes.

12. The legislature intends that the accrued
earnings not be subject to federal income tax. ASRS may adopt additional rules,
policies and procedures as ASRS deems necessary or appropriate to fulfill the
legislature's intent that the accrued earnings not be subject to federal income
tax.

13. If ASRS receives notification from the United
States internal revenue service that this subsection or any portion of this
subsection will jeopardize the tax-exempt status of the 401(a) pension
contributions the employer prepays according to this subsection and the accrued
earnings, the portion of this subsection that will cause the disqualification
does not apply.

E. In addition to the requirements of subsection D
of this section, any prepayment agreement made between ASRS and this state or
any state agency is subject to the following requirements:

1. Any prepayment amounts deposited with ASRS must
be from an appropriation specifically for that purpose that is passed by the
legislature and signed by the governor.

2. Any prepayment amounts or accrued earnings used
to reduce the employer's 401(a) pension contributions must be authorized for a
specific fiscal year by legislation that is passed by the legislature and
signed by the governor.

F. For the purposes of this section:

1. "401(a) pension contributions" means
the portion of an employer's pension contribution that is specific to the
retirement program established under this article and qualified under section
401(a) of the internal revenue code.

2. "Section 115 trust" means a trust whose
income is exempt from gross income pursuant to section 115 of the internal
revenue code for essential government functions integral to this state and its
political subdivisions.
END_STATUTE

Sec. 10. Section 41-723, Arizona Revised
Statutes, is amended to read:

START_STATUTE
41-723.

Governor's office of strategic planning and budgeting; duties

The director of the governor's office of strategic planning and
budgeting shall:

1. Confer with officials of federal agencies
concerning grants-in-aid generally, and particularly in regard to
federal-aid programs in progress in this state.

2. On or before September 1 of each
even-numbered

year or with the submission of budget estimates as provided in section
35-113, report to the staff of the joint legislative budget committee
findings and recommendations in the following areas:

(a) Except for a university under the jurisdiction
of the Arizona board of regents, the use of federal monies by any state agency
that receives federal monies, that anticipates receipt of federal monies or
that administers a program supported by federal monies. A university
shall submit an audited schedule of federal award spending for the preceding
fiscal year to the staff of the joint legislative budget
committee. The reports that all state agencies, except universities,
are required to submit must:

(i) Delineate the federal monies received for the
preceding fiscal year.

(ii) Delineate the federal monies to be used by the
state agency for the current and upcoming fiscal year, including any programs
supported by federal monies in which the loss of federal monies may impact the
continuity or delivery of services.

(iii) Identify the date, if known, on which federal
monies are set to expire.

(iv) Identify any obligations, agreements, joint
exercise of powers agreements, maintenance of efforts agreements or memoranda
of understanding that may be impacted by federal or state decisions regarding
federal receipts, including any state matching requirements.

(v) Calculate the percentage of federal monies from
the total monies available for the state agency for the fiscal year.

(b) If any state agency received notice of a
reduction in federal monies from a specific federal grant of fifty percent or
more from the previous fiscal year's funding,
identify
the
plan to either reduce or eliminate the services provided through the grant or
to continue services without any increase to any state resources.

(c) Federal grant-in-aid programs in
which this state does not participate.

(d) Legislation necessary for activation of federal
programs in which this state does not participate.

(e) Legislation necessary for improved operation of
federal grant-in-aid programs in progress in this state.

(f) The

advisability of
accepting new grant-in-aid programs or discontinuing programs
already in progress.

3. Have access to the books, accounts, reports and
vouchers and all other pertinent records of all state agencies for the purpose
of carrying out the provisions of this section.
END_STATUTE

Sec. 11. Section 41-792.01, Arizona Revised
Statutes, is amended to read:

START_STATUTE
41-792.01.

Capital outlay stabilization fund; authorization for collection
of rental; basis of payment; report; distribution of monies collected; transfer
of payment; lease-purchase building operating and maintenance fund; definition

A. The capital outlay stabilization fund is
established
which shall consist
consisting

of monies paid into it in accordance with subsections D and F of this section
and legislative appropriations to the account. All monies in the
fund are exempt from the provisions of section 35-190 relating to lapsing
of appropriations.

B. The director shall make a recommendation for the
allocation of a varying sum to the capital outlay stabilization fund each
odd-numbered
year. No part of the fund may be
expended without specific appropriation from the legislature.

C. Each state department and each state agency when
using space under the jurisdiction of the department as prescribed in section
41-791 or when using space in a building leased to the state shall pay
rental and tenant improvement labor costs as prescribed in subsection D, E or F
of this section.

D. The rental rates authorized for agencies
occupying state-owned buildings shall be determined by the joint committee on
capital review after recommendation by the director before July 1 of each even-numbered
year. The rental is payable whether the state department or state
agency is funded in whole or in part by state monies. The department
of administration shall transfer the entire amount of the rental fee assessed
on a state agency from the agency account into the capital outlay stabilization
fund promptly at the start of each fiscal year. During the remainder
of the fiscal year, the department of administration shall calculate pro rata
adjustments to the rental fee on a monthly basis to reflect any changes in the
occupancy of state-owned buildings. The department of administration
shall transfer the amount of the rental fee adjustment assessed on a state
agency from the agency account into the capital outlay stabilization
fund. The rental fee authorized for state agencies occupying
state-owned buildings is the greater of the amount included in each agency's
annual operating budget as reported by the staff of the joint legislative
budget committee or the pro rata adjusted amount based on actual
occupancy. The director of the department of administration may
authorize an exemption for periods of one year or more at a time for a state
agency from the full payment account transfer requirements of this subsection
if the agency can demonstrate a practice of making full payment of rent on a different
basis necessitated by its cash flow. If a state agency does not have
the financial resources for state-owned space, or does not occupy or vacates
state-owned space after the beginning of the fiscal year, the director of the
department of administration may authorize a whole or partial exemption from
payment of the rental fee. On or before June 30 of each year, the
department of administration shall submit a report to the staff of the joint
legislative budget committee that details all rental fee exemptions authorized
in the prior year.�

E. The rental authorized for state agencies
occupying state-leased buildings shall be the greater of the amount
included in each agency's annual operating budget as reported by the staff of
the joint legislative budget committee or the pro rata adjusted amount based on
actual occupancy. The rental amount shall include the amount
necessary to pay the lease or lease-purchase obligation and may include
the amount necessary to pay operating costs associated with the lease-purchase
buildings. The rental is payable whether the state department or
state agency is funded in whole or in part by state monies. At the
start of each fiscal year, the department of administration shall transfer the
entire amount of the rental fee assessed on a state agency from the agency
account into the department of administration's funds established for the
purposes of this subsection. The department shall transfer from the
applicable state agency budgets to the lease-purchase building operating
and maintenance fund established in subsection I of this section amounts
necessary to pay all operating costs associated with a lease-purchase
building in the amounts reported by the staff of the joint legislative budget
committee. During the remainder of the fiscal year, the department
of administration shall calculate pro rata adjustments to the rental fee on a
monthly basis to reflect any changes in the occupancy of state-leased
buildings. The director of the department of administration may
authorize an exemption for a state agency from the full payment account
transfer requirements of this subsection for one-year periods or longer
periods if the agency can demonstrate a practice of making full payment of rent
on a different basis necessitated by its cash flow. If a state
agency does not have the financial resources for state-leased space, or
does not occupy or vacates state-leased space after the beginning of the
fiscal year, the director of the department of administration may authorize a
whole or partial exemption from payment of the rental fee. Before
authorizing a rental fee exemption, the department of administration shall
report the proposed rental fee exemption to the staff of the joint legislative
budget committee.

F. The department of administration shall charge
state agencies for the full costs of labor services it provides to accomplish
tenant improvement projects within a building owned by or leased to the
state. Charges for this labor shall be deposited in the capital
outlay stabilization fund.

G. State universities, community colleges and the
department of transportation are exempt from the provisions of this section,
except when these state agencies are using space under the jurisdiction of the
department of administration.

H. The department of administration shall not begin
to charge rental or tenant improvement labor costs as prescribed in subsection
D, E or F of this section until July 1, 2012 for any buildings operated by the
secretary of state primarily for the purpose of storing, managing or preserving
a large amount of public records or archival material.

I. The lease-purchase building operating and
maintenance fund is established consisting of monies transferred into it in
accordance with subsection E of this section. All monies in the fund
are exempt from the provisions of section 35-190 relating to lapsing of
appropriations.� Monies in the fund are subject to legislative appropriation.

J. For the purposes of this section, buildings
leased by this state through the sale and lease-back deficit financing
mechanism are considered state-owned buildings. State-leased
buildings that are subject to subsection E of this section and that meet the
requirements of section 41-791, subsection B are subject to subsection D
of this section in the fiscal year following the retirement of the lease or
lease-purchase debt service financing.� On or before September 1 of each
even-numbered
year, the department of administration
shall report to the joint legislative budget committee and the governor's
office of strategic planning and budgeting on the cost associated with charging
rental rates to state agencies with retired leases or lease purchases for the next
two ensuing
fiscal
year

years
.

K. For the purposes of this section, "state
department" or "state agency" means any department or agency of
the executive or judicial branch of state government.
END_STATUTE

Sec. 12. Section 41-793, Arizona Revised
Statutes, is amended to read:

START_STATUTE
41-793.

Building systems; capital improvement plans

A. The department of administration, the Arizona
board of regents and the department of transportation shall each be considered
as a separate building system. Subject to approval by the joint
committee on capital review, the director of the department of administration
shall establish additional building systems for the purpose of computing and
funding building renewal. Subject to approval by the joint committee
on capital review, each building system shall designate an agency that is
responsible for computing building renewal needs for each
two
ensuing
fiscal
year
years

pursuant to the formula approved by the committee and for allocating
appropriated building renewal monies within the building system.

B. The agency responsible for each building system
established pursuant to subsection A of this section shall prepare
in
each
even-numbered
year a
capital improvement plan that contains proposals for state spending on land
acquisition, capital projects, energy systems, energy management systems and
building renewal for the building system. Copies of the plan shall
be submitted to the governor
no
not

later than October 15
of each even-numbered year
. Each
plan shall include:

1. A detailed list of all land acquisition and
capital projects that are recommended to be undertaken or continued for the
building system during the next
two
fiscal
year

years
, an explanation as to the need for each acquisition
or project, the effect of the recommended acquisition or capital project on the
future operating expenses of this state, recommendations as to the priority of
recommended acquisitions or capital projects and the means of financing those
acquisitions or projects.

2. Forecasts as to the requirements for land
acquisition and capital projects for the building system during the two fiscal
years following the
two
fiscal
year

years
provided for in paragraph 1 of this subsection and for
any additional periods as may be necessary or desirable for an adequate
presentation of the capital projects and a schedule for the planning and
implementation or construction of those capital projects.

3. A report on the status of all ongoing or recently
completed land acquisitions and capital projects for the building system, with
a summary of monies expended for each acquisition or project.

4. A report on the condition, maintenance and
utilization of all buildings within the building system that were inspected
during the prior
two
fiscal
year

years
.

5. A report on the building renewal activities
undertaken during the past
two
fiscal
year

years
, including the specific purposes for which monies
were expended, proposed activities for the current fiscal year and a
prioritized schedule of renewal projects proposed for the following fiscal
year.

6. The amount of appropriation required in the
following
two
fiscal
year

years
for building renewal as determined by the building
renewal formula set forth in section 41-793.01.

C. On or before June 1 of each year or thirty days
after the state legislature adjourns its regular session sine die, whichever is
later, each state agency under the department of administration building system
and not later than August 1 of each year each agency under the Arizona board of
regents building system shall provide to the agency responsible for its
building system:

1. A detailed list of land acquisition and capital
projects the agency seeks to undertake or continue in the next
two

fiscal
year

years
, an
explanation as to the need for each acquisition or project, the effect of the
acquisitions or capital projects on future operating expenses of this state,
including energy systems and energy management systems, and other relevant
supporting data requested by the agency responsible for the building system.

2. Forecasts as to the requirements for land
acquisition or capital projects of the agency for the two fiscal years
following the
two
fiscal
year

years
provided for in paragraph 1 of this subsection and for
any additional periods as may be necessary or desirable for the adequate
presentation of the capital projects and a schedule for the planning and
implementation or construction of those capital projects.

3. A report on all ongoing or recently completed
land acquisitions and capital projects of the agency, with a summary of monies
expended for each acquisition or project, and energy consumption and
expenditure information.

4. Any other information requested by the agency
responsible for the building system.

5. A separate list that contains the status of all
of its projects reviewed by, approved by or reported to the joint committee on
capital review that have not yet been completed. The projects listed
shall include third-party and commercial projects reported or reviewed pursuant
to section 15-1682.02.

D. Each state agency in complying with subsection C,
paragraph 1 of this section and the agency responsible for each building system
in complying with subsection B, paragraph 1 of this section should give
priority to fire and life safety projects.

E. The agency responsible for a building system
shall inspect the condition, maintenance and utilization of each building
within the building system not less than once every four fiscal years and shall
report its findings pursuant to subsection B of this section. For
purposes of complying with this requirement, the agency responsible for each
building system shall inspect approximately fifty percent of its buildings
within the first two years of the four-year cycle. The agency shall
inspect the other fifty percent of the buildings in the remaining two years of
the four-year cycle.

F. The governor shall prescribe standard forms in
accordance with this section to be used by state agencies in preparing and
submitting capital improvement plans. The forms prescribed shall be
constructed so as to allow each building system to adequately provide
information pertinent to its manner of operation.

G. Each plan, forecast and report required for two
or more fiscal years in this section shall be delineated separately for each
year.
END_STATUTE

Sec. 13. Section 41-1273, Arizona Revised
Statutes, is amended to read:

START_STATUTE
41-1273.

Budget analyst; employees; duties; reports

A. The joint legislative budget committee shall
appoint a budget analyst and other clerical and technical employees that may be
required.

B. The budget analyst shall serve full time as staff
director and receive compensation as determined pursuant to section 38-611. The
budget analyst, as a prerequisite for appointment, shall have demonstrated the
budget analyst's competency and ability in the field of finance either in
private business or public work.

C. The budget analyst may be removed from office
prior to expiration of the budget analyst's term if, voting separately, a
majority of the members of each body constituting the joint legislative budget
committee votes in favor of removal.

D. The budget analyst shall prepare for distribution
an analysis of the governor's budget as soon after the budget is presented to
the legislature as is possible. The analysis, among other things,
shall include recommendations of the budget analyst for revisions in
expenditures.

E. In consultation with the governor's office of
strategic planning and budgeting, the budget analyst shall determine and report
to the governor and the legislature an estimate of appropriations subject to
the limit imposed by article IX, section 17, Constitution of
Arizona. The report shall be published on or before February 15 of
each
even-numbered
year for the preceding
two
fiscal
year

years
,
for the current fiscal year and for the ensuing fiscal year to reflect the
budget recommendations of the joint legislative budget committee.

F. On or before December 1 of each
even-numbered

year, the budget analyst shall report to the committee a listing of
statutorily deleted and newly created funds and funds that changed appropriated
status from the prior
two
fiscal
year

years
.

G. On or before January 31 of each
odd-numbered

year, the budget analyst shall report to the committee the expenditures
for each retirement system for the preceding
two
fiscal
year

years
, including the expenditures
made by this state for the employer contribution for each retirement system.

H. The legislature in making its appropriation for
the operation of the legislature shall allocate a portion thereof for the
operation of the joint legislative budget committee.

I. On or before December 1, 2019 and once every
seven years thereafter, the budget analyst shall report to the committee the
following:

1. The current amount of each surcharge and
assessment that is authorized by law to be collected on every fine, penalty and
forfeiture imposed and collected by the courts for criminal offenses and every
civil penalty imposed and collected for a civil traffic violation and fine,
penalty or forfeiture for a violation of the motor vehicle statutes, for any
local ordinance relating to the stopping, standing or operation of a vehicle or
for a violation of the game and fish statutes in title 17.

2. The items for which the collected surcharge or
assessment monies are used.
END_STATUTE

Sec. 14.
Retroactivity

This act applies retroactively to from
and after August 31, 2026.