ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

First Regular Session

Senate: APPROP DP 8-2-0-0 | 3rd Read: 17-13-0-0

House: Rules DP/C&P 8-0-0-0 | 3rd Read: 40-16-4-0

Chapter: 246

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note

SB 1748: 2025-2026; state budget implementation

Sponsor: Senator Kavanagh (with permission of committee on Rules), LD 3

Signed by the Governor

Overview

Contains provisions relating to budgetary fund revisions needed to implement the FY 2026 budget.

History

The Arizona Legislature adopts a budget for each fiscal year (FY) that contains general appropriations. Article IV, Section 20, Part 2 of the Constitution of Arizona requires the General Appropriations Act (feed bill) to contain only appropriations for the different state departments, state institutions, public schools and interest on public debt. Statutory changes necessary to reconcile the appropriations made in the feed bill and other changes are drafted into separate budget bills. These bills are prepared according to subject area.

Provisions

Compensation of State Officers and Employees

1.   Prohibits an agency from allowing a person to serve in any capacity as a state officer or employee if their salary, wages or other compensation for the performance of official state duties is paid in whole or in part by private monies. (Sec. 1)

2.   Exempts the Department of Public Safety, The Department of Environmental Quality and any public university under the jurisdiction of the Arizona Board of Regents. (Sec. 1)

3.   Defines agency and private monies. (Sec. 1)

Arizona Office of African-American Affairs

4.   Changes the name of the Arizona Commission of African-American Affairs to the Arizona Office of African-American Affairs. (Sec. 2, 3, 4, 5, 6)

ADOA Data Management System

5.   Instructs the Director of the Arizona Department of Administration (ADOA) to consult with and accommodate the policies of the budget units of the Legislative Branch during FY 2026 in implementing ADOA's personnel and financial management system and applications. (Sec. 7)

Essential Government Services

6.   States that unrestricted federal monies received by this state beginning July 1, 2025, through June 30, 2026, must be deposited in the state General Fund and used to pay essential government services. (Sec. 8)

7.   Contains a retroactivity clause for provisions relating to the receipt of unrestricted federal monies. (Sec. 8)

Budget Stabilization Fund

8.   Specifies the Legislature is not required to appropriate or transfer monies from the Budget Stabilization Fund for FY 2026, FY 2027 and FY 2028. (Sec. 9)

9.   States the Budget Stabilization Fund is not limited to 10% of state General Fund revenue in FY 2026 and prohibits the State Treasurer from transferring any surplus monies from the fund to the state General Fund. (Sec. 9)

Miscellaneous

10.  Makes technical changes.

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14.                    SB 1748

15.  Initials JH           Page 0 Signed by the Governor

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