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Chapter 0138 - 572R - H Ver of HB4166
House Engrossed
state budget
implementation; 2026-2027
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
CHAPTER 138
HOUSE BILL 4166
AN
ACT
Amending section 18-104, Arizona
Revised Statutes; Appropriating monies; relating to implementation of budgetary
revisions.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 18-104, Arizona Revised
Statutes, is amended to read:
START_STATUTE
18-104.
Powers and duties of the department; violation; classification
A. The department shall:
1. Develop, implement and maintain a coordinated
statewide plan for information technology. This includes:
(a) Adopting statewide technical and coordination
standards for information technology
, WHICH MAY INCLUDE a
requirement that BUDGET units adopt certain technologies and data sharing
practices to improve the efficiency of administering information technology
.
(b) Serving as statewide coordinator for information
technology resources.
(c) Developing a statewide disaster recovery plan,
identifying risks in each budget unit and directing agencies to adopt risk
mitigation strategies, methods and procedures to minimize the risks.
(d) Developing a list of approved department
projects by priority category.
(e) Developing a detailed list of information
technology assets that are owned, leased or employed by this state.
(f) Evaluating and either approving or disapproving
budget unit information technology plans. Budget units shall submit
information technology plans that include quality assurance plans and disaster
recovery plans to the department each year on or before May 15. The
legislative and judicial departments of state government shall submit
information technology plans on or before September 1 for information purposes.
(g) Evaluating specific information technology
projects relating to the approved budget unit and statewide information
technology plans in consultation with the statewide information security and
privacy office in the Arizona department of homeland security. The
department shall approve or reject projects with total costs of at least
$25,000 but not more than $1,000,000 and may establish conditional approval
criteria, including procurement purchase authority. If the total
project costs exceed $1,000,000, the department shall evaluate the project and
make recommendations to the information technology authorization
committee. If the total project costs exceed $5,000,000, the
department shall require the budget unit to contract with an independent third
party to review and guide the technology approach, scope, estimated cost,
timeline for completion and overall feasibility of the project before making
recommendations to the information technology authorization
committee. On or before the thirtieth day following the last day of
each calendar quarter, the budget unit shall submit a report from the
independent third party to the information technology authorization committee
and the joint legislative budget committee regarding the progress of each
ongoing project. As part of a budget request for an information
technology project that has total costs of at least $25,000, a budget unit
shall indicate the status of review by the department.� Projects shall not be
artificially divided to avoid review by the department.
(
h
) developing
a statewide data strategic plan for the PURPOSES of improving the EFFICIENCY
and effectiveness of data sharing and data governance activities.
2. Require that budget units incorporate a life-cycle
analysis into the information technology planning, budgeting and procurement
processes.
3. Require that budget units demonstrate expertise
to carry out information technology plans, either by employing staff or
contracting for outside services.
4. Monitor information technology projects that the
department considers to be major or critical, including expenditure and
activity reports and periodic review.
5. Temporarily suspend the expenditure of monies if
the department determines that the information technology project is at risk of
failing to achieve its intended results or does not comply with the
requirements of this section.
6. Continuously study emergent technology and
evaluate its impact on this state's system.
7. Advise each budget unit as necessary and report
to the committee on an annual basis.
8. Provide to budget units information technology
consulting services it deems necessary, either directly or by procuring outside
consulting services.
9. Maintain all otherwise confidential information
received from a budget unit pursuant to this section as confidential.
10. Provide staff support to the committee.
11. Subject to section 35-149, accept, spend
and account for grants, monies and direct payments from public or private
sources and other grants of monies or property to conduct programs that it
deems consistent with the government information technology purposes and
objectives of the department.
12. Adopt rules it deems necessary or desirable to
further the government information technology objectives and programs of the
department.
13. Formulate policies, plans and programs to
effectuate the government information technology purposes of the department.
14. Advise and make recommendations to the governor
and the legislature on all matters concerning its objectives.
15. Contract and enter into interagency and
intergovernmental agreements pursuant to title 11, chapter 7, article 3 with
any public or private party.
16. Have an official seal that shall be judicially
noticed.
17. Establish an interactive online directory of
codes, rules, ordinances, if available electronically, and statutes to assist
individuals and businesses with regulatory requirements and obligations.� As
provided in this paragraph, counties, municipalities and budget units shall
submit information in a manner and format prescribed by the agency.
18. Manage enterprise-level information
technology infrastructure, except that the
statewide
information security and privacy office in the Arizona department of homeland
security shall manage the information security aspects of the infrastructure.
19. Develop strategies to protect the information
technology infrastructure of this state and the data that is stored on or
transmitted by the infrastructure.
20. Temporarily suspend access to information
technology infrastructure when directed by the Arizona department of homeland
security and consult with the Arizona department of homeland security regarding
security policies, standards and procedures.
21. Have the ability to delegate
authority or specific information technology functions to any budget unit.
22. Have the authority to ENTER into
agreements with any state agency or political subdivision of this state to
furnish information technology services. Unless monies have been
appropriated by the LEGISLATURE for this purpose, any agreement shall provide
for reimbursement to the department FOR the costs of the services furnished as
determined by the department.
B. The department shall advise the judicial and
legislative branches of state government concerning information technology.
C. The department may examine all books, papers,
records and documents in the office of any budget unit and may require any
state officer of the budget unit to furnish information or statements necessary
to carry out this chapter.
D. The director, any member of the director's staff
or any employee who knowingly divulges or makes known in any manner not
permitted by law any particulars of any confidential record, document or
information is guilty of a class 5 felony.
END_STATUTE
Sec. 2.
Unrestricted
federal monies; essential government services; retroactivity
A. Any unrestricted federal
monies received by this state beginning July 1, 2026 through June 30, 2027 shall
be deposited in the state general fund. The monies shall be used to
pay essential government services.
B. This section applies
retroactively to from and after June 30, 2026.
Sec. 3.
Budget stabilization fund;
exceptions
Notwithstanding
section 35-144, Arizona Revised Statutes:
1. For
fiscal years 2026-2027 and 2027-2028, the legislature is not
required to appropriate monies to or transfer monies from the budget
stabilization fund.
2. For fiscal year 2026-2027,
the budget stabilization fund is not limited to ten percent of the state
general fund revenue for the fiscal year, and the state treasurer may not
transfer any surplus monies from the budget stabilization fund to the state
general fund.
APPROVED BY THE GOVERNOR JUNE 13, 2026.
FILED IN THE OFFICE OF THE SECRETARY OF STATE JUNE 13, 2026.