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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
AMENDED
2025-2026; state budget implementation
Purpose
Makes statutory and session law changes relating to budget implementation necessary to implement the FY 2026 state budget.
Background
The Arizona Constitution prohibits substantive law from being included in the general appropriations, capital outlay appropriations and supplemental appropriations bills. However, it is often necessary to make statutory and session law changes to effectuate the budget. Thus, separate bills called budget reconciliation bills (BRBs) are introduced to enact these provisions. Because BRBs contain substantive law changes, the Arizona Constitution provides that they become effective on the general effective date, unless an emergency clause is enacted.
S.B. 1748 contains the budget reconciliation provisions for changes relating to budget implementation.
Provisions
1. States that the Legislature is not required to appropriate monies to or transfer monies from the Budget Stabilization Fund in FY 2026, FY 2027 and FY 2028.
2. Continues to suspend the Budget Stabilization Fund cap of 10 percent of the state General Fund (state GF) revenue for FY 2026 and prohibits the State Treasurer from transferring any surplus monies from the Budget Stabilization Fund to the state GF.
3. Requires the Director of the Arizona Department of Administration (ADOA), during FY 2026, to consult with and accommodate the policies of the budget units of the legislative branch of government in implementing ADOA's personnel and financial data management system and applications.
4. Continues to require, retroactive to July 1, 2025, any unrestricted federal monies received by Arizona in FY 2026 to be deposited in the state GF and used to pay essential governmental services.
5. Prohibits a public agency from allowing a person to serve in any capacity as a state officer or employee if the person's salary, wages or other compensation for performing official state duties is paid in whole or in part by private monies, except for the Department of Public Safety, Department of Environmental Quality and any public university under the jurisdiction of the Arizona Board of Regents.
6. Defines private monies as monies from a source other than the state, a political subdivision of the state or the federal government, including monies from a nonprofit organization, charitable foundation university, private donor or advocacy group.
7. Renames the Arizona Commission of African-American Affairs to the Arizona Office of African-American Affairs.
9. Makes technical and conforming changes.
10. Becomes effective on the general effective date, with retroactive provisions as noted.
Amendments Adopted by Committee of the Whole
1. Removes the requirement that all counties must pay a prorated share of the computed assessment amount to administer the statewide database of voter registration information.
2. Prohibits a public agency from allowing a person to serve in any capacity as a state officer, employee or contractor if the person's salary, wages or other compensation is paid in whole or in part by private monies and outlines exemptions.
3. Defines terms.
4. Makes conforming changes.
Senate Action
APPROP 6/17/25 DP 8-2-0
Prepared by Senate Research
June 17, 2025
AN/ci