This bill proposes to amend Title 41, chapter 49 of the Arizona Revised Statutes by adding a new article that specifically addresses the appropriation of federal monies. It introduces definitions for "budget unit" and "noncustodial federal monies," the latter of which includes federal funds designated as block grants, general revenue sharing, or those that provide the state with broad spending authority. The bill mandates that budget units receiving these noncustodial federal funds must maintain separate accounts to comply with accounting and auditing requirements.

Additionally, the bill clarifies the legislature's authority to appropriate noncustodial federal monies and outlines procedures for handling appropriations. If the legislature does not appropriate funds, the budget unit can still administer the federal monies according to applicable laws. The bill also stipulates that appropriations must specify the intended use of the funds, allows for lump sum appropriations for unanticipated funds, and establishes protocols for adjusting appropriations based on the actual amount of federal funds received. The act is set to take effect on December 31, 2027.