ARIZONA STATE SENATE

RESEARCH STAFF

LIAM MAHER

LEGISLATIVE RESEARCH ANALYST

APPROPRIATIONS, TRANSPORTATION & TECHNOLOGY COMMITTEE

Telephone: (602) 926-3171

TO:                  MEMBERS OF THE SENATE

APPROPRIATIONS, TRANSPORTATION & TECHNOLOGY COMMITTEE

DATE:            March 27, 2026

SUBJECT:      Strike everything amendment to H.B. 2812, relating to department of public safety; appropriation

Purpose

            Appropriates $4,750,000 from the Arizona Highway Patrol Fund (Fund) in FY 2026 to the Department of Public Safety (DPS) and exempts DPS from the statutory prohibition against state agencies employing legal counsel until December 31, 2026.

Background

            The Fund is administered by DPS and monies are subject to legislative appropriation. The Fund consists of monies collected from premium tax paid by vehicle insurers, fees, rewards, awards, insurance recoveries and receipts from the sale or disposal of property held by the highway patrol. The FY 2026 estimated year-end balance is $65,994,800 (JLBC Baseline).

            With certain exceptions, statute prohibits state agencies from employing legal counsel or making expenditures or incurring indebtedness for legal services. The Attorney General (AG) and the following entities are exempt from the prohibition: 1) the Director of the Arizona Department of Water Resources; 2) the Residential Utility Consumer Office; 3) the Industrial Commission of Arizona; 4) the Arizona Board of Regents; 5) the Office of the Auditor General; 6) the Corporation Commissioners and the Arizona Corporation Commission other than the Securities Division;
7) the Office of the Governor; 8) the Constitutional Defense Council; 9) the Office of the State Treasurer; 10) the Arizona Commerce Authority; and 11) the Water Infrastructure Finance Authority. If the AG determines that the AG is disqualified from providing judicial or
quasi-judicial legal representation or legal services on behalf of any state agency in relation to any matter, the AG must give written notification to the state agency affected. Upon receipt of written notification from the AG that the AG is disqualified from providing judicial or quasi-judicial legal representation or legal services in relation to any particular manner, the state agency may make expenditures and incur indebtedness to employ attorneys to provide the representation or services (A.R.S. § 41-192).

            There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1. Appropriates $4,750,000 from the Fund in FY 2026 to DPS for the purposes of DPS' legal counsel.

2. Exempts DPS from the statutory prohibition against state agencies employing legal counsel or spending monies for legal services until December 31, 2026.

3. Exempts the appropriation from lapsing.

4. Makes technical and conforming changes.

5. Becomes effective on the general effective date.