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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
REVISED
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
Statewide Database of Voter Registration Information (AVID)
1. Removes the specification that the County Contributions to the Voter Registration System Fund must be established pursuant to an agreement between a county and the Secretary of State (SOS) relating to developing and administering AVID.
2. Requires monies in the County Contributions to the Voter Registration System Fund to be used to develop and administer AVID.
3. Specifies that the County Contributions to the Voter Registration System Fund consists of monies charged to counties by the SOS, rather than monies transferred from the counties to the SOS.
4. Requires the SOS, beginning in FY 2026, to assess and collect monies from each county each fiscal year to be used to support AVID.
5. Requires the SOS to deposit monies collected for AVID in the County Contributions to Voter Registration System Fund.
6. Requires the SOS to determine the assessment amount by computing the total contractual and staffing costs necessary to administer AVID for the fiscal year and multiplying the total cost by 50 percent.
7. Requires the SOS to assess each county its proportionate share of the computed assessment amount based on each county's share of the total number of active registered voters in the state as of January 1 of the fiscal year.
8. Prohibits staff members included in the AVID assessment computation from performing any functions for the SOS that are not related to the implementation and maintenance of AVID.
9. Requires the SOS, by March 1 of each fiscal year, to send an invoice to each county for the county's assessment for the fiscal year.
10. States that the assessment is due immediately on receipt by the county.
11. Allows a county to pay the assessment from any source of county revenue designated by the county.
12. Requires the SOS to notify the State Treasurer if a county fails to pay the assessment in full by May 1 of each fiscal year.
13. Requires the State Treasurer to withhold the delinquent amount from the distribution of state shared revenues to the county that fails to pay the assessment and continue to withhold monies from the county until the entire amount of the assessment has been satisfied.
Budget Stabilization Fund
14. 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.
15. 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.
Miscellaneous
16. 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.
17. 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.
18. Renames the Arizona Commission of African-American Affairs to the Arizona Office of African-American Affairs.
19. Makes technical and conforming changes.
20. Becomes effective on the general effective date, with retroactive provisions as noted.
Revisions
ˇ Corrects the provision relating to depositing unrestricted federal monies to reflect the correct fiscal year.
Prepared by Senate Research
June 17, 2025
AN/ci