The proposed bill would amend current statutes by adding a new article to Title 41 of the Arizona Revised Statutes, specifically addressing the appropriation of noncustodial federal monies. It grants the Legislature the authority to appropriate these funds and requires that any budget unit receiving such funds must account for them separately. The bill defines "noncustodial federal monies" and outlines the criteria for these funds, while also specifying that they do not include certain federal monies related to emergency and military affairs or research grants awarded to universities.

Additionally, the bill stipulates that if the Legislature does not appropriate specific noncustodial federal funds, the relevant budget unit may still administer and spend those funds in accordance with applicable laws. It mandates that the Legislature specify the intended use of these appropriations and allows for lump sum appropriations for unanticipated funds. The bill also includes provisions for adjusting appropriations based on the actual amount of noncustodial federal funds received, ensuring that any excess funds are credited appropriately. The act is set to take effect on December 31, 2027.