STATE BUDGET – Amends existing law to revise provisions regarding expenditures made pursuant to certain funds that are not cognizable.

LEGISLATURE
OF
THE
STATE
OF
IDAHO
Sixty-eighth
Legislature
Second
Regular
Session
-
2026
IN
THE
HOUSE
OF
REPRESENTATIVES
HOUSE
BILL
NO.
835
BY
APPROPRIATIONS
COMMITTEE
AN
ACT
1
RELATING
TO
STATE
BUDGET;
AMENDING
SECTION
67
-
3516,
IDAHO
CODE,
TO
REVISE
A
2
PROVISION
REGARDING
THE
EXPENDITURE
OF
CERTAIN
FUNDS;
AND
DECLARING
AN
3
EMERGENCY
AND
PROVIDING
AN
EFFECTIVE
DATE.
4
Be
It
Enacted
by
the
Legislature
of
the
State
of
Idaho:
5
SECTION
1.
That
Section
67
-
3516,
Idaho
Code,
be,
and
the
same
is
hereby
6
amended
to
read
as
follows:
7
67
-
3516.
APPROPRIATION
ACTS
DEEMED
FIXED
BUDGETS
-
-
RATE
OF
EXPENDI
-
8
TURE.
(1)
Appropriation
acts
when
passed
by
the
legislature
of
the
state
of
9
Idaho,
and
spending
authority
made
thereunder,
whether
the
appropriation
is
10
fixed
or
continuing,
are
fixed
budgets
beyond
which
state
officers,
depart
-
1
1
ments,
bureaus,
and
institutions
may
not
expend.
12
(2)
Moneys
available
to
any
agency
from
sources
other
than
state
mon
-
13
eys,
if
not
cognizable
at
the
time
when
appropriations
were
made
whether
14
state
fiscal
liability
is
increased
or
not,
must
have
prior
approval
of
the
15
administrator
of
the
division
of
financial
management
and
the
board
of
ex
-
16
aminers
in
order
that
moneys
may
be
expended,
except
those
moneys
received
17
under
such
conditions
that
preclude
approval
by
the
administrator
of
the
18
division
and/or
the
board
of
examiners.
Receipts
from
the
sale
of
capital
19
outlay
items
and
insurance
claim
settlements
may,
with
the
approval
of
the
20
division
of
financial
management,
be
included
as
an
increase
to
an
agency's
21
appropriation
and
must
be
identified
at
an
account
category
level.
Expendi
-
22
ture
of
such
receipts
must
be
for
capital
outlay
items,
except
in
the
case
of
23
a
sale
of
a
motor
vehicle,
which,
notwithstanding
section
67
-
3511(3),
Idaho
24
Code,
may
be
transferred
to
operating
expenditures
with
the
approval
of
the
25
division
of
financial
management.
Cumulative
expenditures
made
pursuant
to
26
this
subsection
shall
not
exceed
ten
million
dollars
($10,000,000)
in
any
27
fiscal
year,
excluding
any
funds
expended:
28
(a)
Pursuant
to
declared
federal
or
state
emergencies;
29
(b)
For
construction
projects
at
the
orchard
combat
training
center
or
30
Gowen
field
that
are
funded
through
the
federal
national
guard
bureau;
31
or
32
(c)
To
fund
tuition
costs
for
Idaho
students
enrolled
at
public
insti
-
33
tutions
of
higher
education
in
the
state
of
Idaho.
34
(3)
One
state
agency
may
bill
another
state
agency
for
goods
and
ser
-
35
vices,
provided
the
billing
agency
receives
prior
approval
in
writing
from
36
the
billed
agency
or
such
billing
is
provided
for
by
law.
This
process
will
37
be
known
as
interagency
billing
to
which
the
following
rules
will
apply:
38
(a)
The
state
controller
will
treat
interagency
receipts
as
revenue
and
39
not
classify
such
revenue
as
a
reduction
of
the
expenditures
of
the
re
-
40
ceiving
agency.
Interagency
billing
credits
for
all
moneys
shall
be
de
-
41
posited
to
the
appropriate
fund
of
that
agency.
42

2
(b)
Interagency
receipts
may
be
expended
by
the
collecting
agency
to
1
the
extent
that
authority
to
do
so
has
been
requested
and
approved
by
the
2
legislature
through
an
appropriation.
3
(c)
The
agency
billed
for
the
goods
and
services
shall
classify,
treat,
4
and
account
for
such
expenses
in
the
same
manner
as
if
such
expenses
had
5
been
paid
by
warrant
and
may
encumber
unexpended
balances
and
may
carry
6
forward
the
encumbered
appropriation
to
liquidate
known
or
anticipated
7
interagency
billing
expenses
at
the
end
of
a
fiscal
year.
The
state
8
controller
shall
provide
for
the
method
of
liquidation
of
these
encum
-
9
brances.
10
(4)
State
agencies
selling
goods,
products,
and
services
to
another
1
1
state
agency
must
use
the
interagency
process
detailed
by
subsection
(3)
of
12
this
section.
State
agencies,
departments,
and
institutions
may
sell
goods,
13
products,
and
services
to
the
public
and/or
other
political
entities.
These
14
cash
receipts
may
be
expended
according
to
the
following
rules:
15
(a)
The
state
controller
will
classify
these
moneys
as
receipts.
16
(b)
Receipts
for
all
moneys
shall
be
deposited
to
the
appropriate
fund
17
of
that
agency.
18
(c)
The
collecting
agency
may
expend
all
such
receipts
only
to
the
ex
-
19
tent
that
authority
to
do
so
has
been
requested
and
approved
by
the
leg
-
20
islature
through
an
appropriation,
except
receipts
received
by
agen
-
21
cies
under
the
circumstances
cited
in
subsection
(2)
of
this
section.
22
SECTION
2.
An
emergency
existing
therefor,
which
emergency
is
hereby
23
declared
to
exist,
this
act
shall
be
in
full
force
and
effect
on
and
after
24
July
1,
2026.
25