This bill proposes to amend current statutes by introducing a new article that defines and regulates the appropriation of noncustodial federal monies. Under the new provisions, "noncustodial federal monies" will be defined as federal funds that allow the state discretion in their use, including block grants and general revenue sharing. The bill specifies that these funds do not include certain federal grants awarded to universities, the Department of Emergency and Military Affairs, or directly to school districts and community colleges. Additionally, it mandates that budget units receiving these funds must account for them in separate accounts to meet auditing requirements.

Furthermore, the bill grants the Legislature the authority to appropriate noncustodial federal monies and requires that the purposes for these appropriations be clearly specified. It allows for lump sum appropriations for unanticipated funds when the Legislature is not in session, with a requirement for budget units to submit proposed expenditures for review. The bill also outlines procedures for adjusting appropriations based on the actual amount of noncustodial federal monies received, ensuring that any excess funds are credited appropriately. The act is set to take effect on January 1, 2027.