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HB4141 - 572R - H Ver
House Engrossed
capital outlay;
2026-2027; appropriations.
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
HOUSE BILL 4141
AN
ACT
Amending laws 2024, chapter 211, section
6; Making capital outlay appropriations for the different departments of the
state and for state institutions; providing for review of capital outlay
projects.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it
enacted by the Legislature of the State of Arizona:
Section 1. Laws 2024, chapter 211, section 6 is
amended to read:
Sec
. 6.
Appropriation reduction; fiscal year 2021-2022; appropriation;
fiscal year 2028-2029; department of veterans' services; veterans' home
facility; site selection; review; exemption
A. Notwithstanding
any other law, the following amounts are reduced from appropriations made to
the following state agency in fiscal year 2021-2022 by Laws 2021, chapter 406,
section 29 for the following project:
B. DEPARTMENT
OF VETERANS' SERVICES
Veterans' home
facility ����������������������� $(25,000,000)
Fund
source:
State general fund����������������������������� $(25,000,000)
C. The
sum of $25,000,000 is appropriated from the state general fund in fiscal year
2027-2028
2028-2029
to the
department of veterans' services to construct and establish a veterans' home
facility in the northwestern portion of this state.
D. The
appropriation made in subsection C of this section is intended to be this
state's share of the costs and is not subject to expenditure for any purpose
unless the department of veterans' services has irrevocable commitments from
the United States government to fund at least sixty-five percent of the total
costs.
E. The
department shall submit the proposed site location in the northwestern portion
of this state to the Arizona veterans' service advisory commission established
by section 41-602, Arizona Revised Statutes, for approval. The department
shall provide the commission a feasibility analysis of suitable sites to
consider when approving the site location.
F. Before spending the appropriation made in
subsection C of this section, the department of veterans' services shall submit
the scope, purpose and estimated cost of the capital improvements to the joint
committee on capital review for its review pursuant to section 41-1252, Arizona
Revised Statutes.
G. The
appropriation made in subsection C of this section is exempt from the
provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of
appropriations.
Building Renewal
Sec. 2.
Capital outlay appropriations; major maintenance and
repair of state buildings
A. Notwithstanding
section 41-793.01, Arizona Revised Statutes, the amounts appropriated in this
section are appropriated for fiscal year 2026-2027 to be used by the applicable
agency for major maintenance and repair activities for state buildings in
accordance with title 41, chapter 4, article 7, Arizona Revised Statutes.
B. DEPARTMENT OF
ADMINISTRATION��������������������� $16,800,000
Fund
source:
Capital outlay stabilization fund�������������� $16,800,000
The department of administration shall
allocate the monies to state agencies for necessary building
renewal. If monies in the capital outlay stabilization fund
established by section 41-792.01, Arizona Revised Statutes, are insufficient to
fund the appropriation to the department of administration for building
renewal, the appropriation to the department of administration is reduced by
the difference between the amount appropriated to the department of
administration from the capital outlay stabilization fund and the balance in
the capital outlay stabilization fund.� Notwithstanding title 41, chapter 4,
article 7, Arizona Revised Statutes, the department of administration may use
monies appropriated for building renewal in fiscal year 2026-2027 for building
projects related to retrofitting facilities for space consolidation
initiatives.
C. STATE DEPARTMENT OF
CORRECTIONS������������������ $ 5,864,300
Fund
source:
Department of corrections building
renewal fund�������������������������������� $ 5,864,300
The state department of corrections
may not spend any of this appropriation on personal services or overhead
expenses related to managing the funded projects.
D. ARIZONA GAME AND FISH
DEPARTMENT����������������� $ 1,932,900
Fund source:
Game and fish fund����������������������������� $ 1,932,900
E. ARIZONA STATE LOTTERY
COMMISSION����������������� $ 237,800
Fund source:
State lottery fund����������������������������� $ 237,800
F. DEPARTMENT OF
TRANSPORTATION��������������������� $23,385,300
Fund
sources:
State highway fund����������������������������� $22,990,400
State aviation fund���������������������������� $ 394,900
Department of Transportation Statewide Highway
Construction
Sec.
3.
Appropriation; department of transportation; statewide highway
construction; reports; exemption
A. The
amount appropriated in this section is appropriated for fiscal year 2026-2027
to plan and construct state highways, including the national system of
interstate highways within this state, the state primary or secondary system,
the county primary or secondary system and urban rural routes, to acquire
rights-of-way and to provide for the cost of contracted field
administration and field engineering on construction projects and debt service
payments on bonds issued for highway construction.
B. DEPARTMENT
OF TRANSPORTATION��������������������� $432,663,000
Fund
source:
State highway fund����������������������������� $432,663,000
Any balances and collections in the
state highway fund established by section 28-6991, Arizona Revised
Statutes, that exceed the specific amounts appropriated in the general appropriations
act and in this act are appropriated to the department of transportation for
the purposes provided in this section.
C. On or before November 1,
2026, the department of transportation shall report to the directors of the
joint legislative budget committee and the governor's office of strategic
planning and budgeting on its actual prior year, estimated current year and
upcoming budget year highway construction expenses from all fund sources,
including appropriated monies, federal monies, local agency monies, state
highway monies, bond proceeds and regional area road monies. The
report shall be in the same format as in the prior year unless the directors of
the joint legislative budget committee and the governor's office of strategic
planning and budgeting have approved modifications to the format.
D. On or before November 1,
2026, the department of transportation shall report capital outlay information
for fiscal years 2025-2026, 2026-2027 and 2027-2028 to the
directors of the joint legislative budget committee and the governor's office
of strategic planning and budgeting. This information shall appear in the same
format as tables two, three and seven, as found in the fiscal year 2025-2026
appropriations report.
E. On or before November 1,
2026, the department of transportation shall report the department's estimated
outstanding debt principal balance at the end of fiscal year 2027-2028 and the
estimated debt service payment amount for each of fiscal years 2027-2028,
2028-2029, 2029-2030 and 2030-2031 to the directors of the
joint legislative budget committee and the governor's office of strategic
planning and budgeting. This report shall include state highway fund
statewide construction bonds, Arizona highway user revenue fund bonds, Maricopa
association of governments and Pima association of governments controlled
access bonds, Maricopa regional area road fund bonds and grant anticipation
notes and is intended to be comparable to the information in the fiscal year
2025-2026 appropriations report.
F. Notwithstanding section
41-1252, Arizona Revised Statutes, the appropriation made in this section is
not subject to review by the joint committee on capital review.
Sec. 4.
Department of transportation; U.S. Route 191
pavement rehabilitation; transfer
On or before June 30, 2026, the
reduction of $2,500,000 made by Laws 2022, chapter 309, section 8, as amended
by Laws 2023, chapter 135, section 3 and Laws 2025, chapter 235, section 1,
from the state highway project to rehabilitate of pavement along United States
Route 191 between Armory Road and East Safford is transferred from the state
highway fund established by section 28-6991, Arizona Revised Statutes, to
the state general fund for the support and maintenance of agencies of this
state.
Sec. 5.
Appropriation;
fiscal year 2028-2029; state match advantage for rural transportation fund
The sum of $26,300,000 is appropriated
from the state general fund in fiscal year 2028-2029 to the state match
advantage for rural transportation fund established by section 28-339,
Arizona Revised Statutes.
Department
of Transportation Airport Planning and Development
Sec. 6.
Appropriation;
department of transportation; airport planning and development; report;
exemption
A. The amount appropriated
in this section is appropriated in fiscal year 2026-2027 to plan, construct,
develop and improve state, county, city or town airports as determined by the
state transportation board.
B. DEPARTMENT OF
TRANSPORTATION��������������������� $ 29,048,900
Fund source:
State aviation fund���������������������������� $ 29,048,900
Any balances and collections in the
state aviation fund established by section 28-8202, Arizona Revised
Statutes, that exceed the specific amounts appropriated in the general
appropriations act and in this act are appropriated to the department of
transportation in fiscal year 2026-2027 for the purposes provided in this
section.
C. On or before December
31, 2026, the department of transportation shall report to the joint
legislative budget committee staff on the status of all aviation grant awards
and aviation grant distributions.� The report shall delineate projects by
individual airport and fiscal year, including any future year commitments.
D. Notwithstanding section
41-1252, Arizona Revised Statutes, the appropriation made in this section is
not subject to review by the joint committee on capital review.
Sec
. 7.
Use of appropriations
A. The department of
administration may spend up to five percent of the amounts appropriated to the
department in this act, excluding amounts to be distributed to nonstate
agencies, for expenditures for project management of building renewal and
capital projects. All other monies appropriated to the department in
this act may not be spent for personal services or employee-related
expenditures or for maintenance contracts on building components and equipment
without review by the joint committee on capital review.
B. Except as provided in subsection
A of this section, the monies appropriated in this act may not be spent for
personal services or employee-related expenditures of state employees,
excluding any services provided as part of the inmate construction program for
correctional facilities.