Assigned to ATT                                                                                                                            AS ENACTED

ARIZONA STATE SENATE

Fifty-Seventh Legislature, Second Regular Session

ENACTED

FACT SHEET FOR H.B. 4164/S.B. 1857

local government; 2026-2027

Purpose

Makes session law changes relating to local government necessary to implement the FY 2027 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.

H.B. 4164 contains the budget reconciliation provisions for changes relating to local government.

Provisions

1. Continues to allow a county with a population of fewer than 250,000 persons to meet any fiscal obligation for FY 2027 from any source of county revenue designated by the county, including monies of any countywide special taxing jurisdiction where the board of supervisors serves as the board of directors.

2. Continues to cap, at $1,250,000, the amount of money a county may use for purposes outside the county's revenue source.

3. Continues to require a county with a population of fewer than 250,000 persons, by October 1, 2026, to report to the Director of the Joint Legislative Budget Committee:

a) whether the county used a revenue source for purposes other than the revenue source's intended purposes to meet a county fiscal obligation; and

b) the specific source and amount of revenues that the county intends to use in FY 2027.

4. Becomes effective on the general effective date.

House Action Senate Action

APPROP       6/10/26     DP       15-1-2-0            ATT            6/10/26            DP       8-2-0

3^rd Read         6/11/26                 49-8-3               3^rd Read      6/11/26                        23-5-2

(H.B. 4164 was substituted for S.B. 1857 on 3^rd Read)

Signed by the Governor 6/13/26

Chapter 136

Prepared by Senate Research

June 19, 2026

AN/KP/hk