 |
ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
DPS; legal representation; appropriation
Purpose
Appropriates $6,400,000 from the Consumer Protection-Consumer Fraud Revolving Fund in FY 2026 to the Department of Public Safety (DPS).
Background
The Consumer Protection-Consumer Fraud Revolving Fund is administered by the Attorney General (AG) and Fund monies are subject to legislative appropriation. The Consumer Protection-Consumer Fraud Revolving Fund consists of any monies recovered for the state from investigative or court costs, attorney fees or civil penalties relating to consumer protection or consumer fraud. The FY 2026 estimated year-end balance is $26,480,700 (JLBC Baseline).
With certain
exceptions, statute prohibits state agencies from employing legal counsel or
making expenditures or incurring indebtedness for legal services. The 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 $6,400,000 from the Consumer Protection-Consumer Fraud Revolving Fund in FY 2026 to DPS as a supplemental appropriation.
2. Exempts DPS from the statutory prohibition against state agencies employing legal counsel or spending monies for legal services.
3. Makes technical changes.
4. Becomes effective on the general effective date.
House Action
PSLE 2/16/26 DPA 8-6-0-1
APPROP 2/18/26 DPA 11-7-0-0
3rd Read 3/2/26 31-25-3
Prepared by Senate Research
March 2, 2026
LMM/mg