ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

First Regular Session

Senate: APPROP DP 7-3-0-0 | 3rd Read 16-14-0-0

House: APPROP DP 8-4-0-1

SB 1112: noncustodial federal monies; appropriation

Sponsor: Senator Mesnard, LD 17

House Engrossed

Overview

Includes a definition for noncustodial federal monies and states that the Legislature retains the authority to appropriate the monies.

History

Currently, the only statutory definition of noncustodial federal monies applies to federal monies that are received by the Department of Education and that meet at least one of the following criteria:

1)   Designated by the Federal Government as block grant monies;

2)   Designated by the Federal Government as general revenue sharing monies;

3)   Provide Arizona with broad authority to make spending decisions regarding developing, implementing or operating a program or service; or

4)   Are considered essential to meet total spending obligations of a federally required or matched program.

Federal monies awarded directly to school districts or charter schools are excluded from the definition of noncustodial federal monies (A.R.S. § 15-1051).

Provisions

1.   ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteDefines Noncustodial Federal Monies as federal monies that meet one of the following criteria:

a)   Designated by the Federal Government as block grant monies;

b)   Designated by the Federal Government as general revenue sharing monies;

c)   Provide Arizona with broad authority to make spending decisions regarding developing, implementing or operating a program or service; or

d)   Are considered essential to meet total spending obligations of a federally required or matched program. (Sec. 1)  

2.   Excludes the following from the definition of noncustodial federal monies:

a)   Federal monies or research grants awarded to universities, university employees or the Arizona Board of Regents for and on behalf of the universities under its jurisdiction;

b)   Federal monies for use by the Department of Emergency and Military Affairs; and

c)   Federal monies awarded directly to school districts or community colleges. (Sec. 1)

3.   Requires a budget unit that receives noncustodial federal monies to account for the noncustodial federal monies in separate accounts or funds to meet account, budgeting and auditing requirements. (Sec. 1)

4.   Allows the Department of Administration to use the most efficient system of accounts and records, consistent with legal requirements and standards and necessary fiscal safeguards. (Sec. 1)

5.   States that the Legislature retains the authority to appropriate noncustodial federal monies. (Sec. 1)

6.   Specifies that if the Legislature does not make an appropriation for either a particular fund, specific grant program or block of noncustodial federal monies, the budget unit that has lawful authority must administer and spend the monies according to federal and state law. (Sec. 1)

7.   Requires the Legislature to specify in each appropriation of noncustodial federal monies, the purposes for which the monies are to be used, consistent with federal law. (Sec. 1)

8.   Allows the Legislature to make a lump sum appropriation to obtain expenditure authority for unanticipated noncustodial federal monies that may become available when Legislature is not in session. (Sec. 1)

9.   Requires the budget unit to submit the proposed expenditure to JBLC for review prior to spending monies from the lump sum appropriation, subject to any condition specified by the Legislature. (Sec. 1)

10.  States that if the amount of the noncustodial federal monies received is less than the amount appropriated, the appropriation of shall be reduced to the amount of noncustodial federal monies received and activities financed by the noncustodial federal monies shall be reduced proportionately. (Sec. 1)

11.  Stipulates that if the amount of noncustodial federal monies received is more than the amount appropriated, the total appropriation of federal and state monies allocated for a program shall remain at the amount designated by the Legislature.

a)   Requires the state Treasurer to credit the excess noncustodial federal monies to the appropriate budget unit account. (Sec. 1)

12.  Contains a delayed effective date of January 1, 2023. (Sec. 2)

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16.                    SB 1112

17.  Initials TG/SM       Page 0 House Engrossed

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