House Bill No. 463, introduced by Representative McFarland, seeks to allocate funds for the ancillary expenses of state government for the Fiscal Year 2025-2026, totaling $2,243,000,000. The bill establishes internal service funds, auxiliary accounts, or enterprise funds to support the operations of various state institutions and agencies, allowing them to conduct business enterprises that provide public and interagency services. It specifies appropriations from various sources, including $997,468,581 from interagency transfers, $2,043,929,010 from fees and self-generated revenues, $202,350,000 from statutory dedications, and $1,169,000 from federal funds. The bill also mandates that any agency with an appropriation of $30 million or more must include internal auditing positions in its budget request to ensure compliance with professional auditing standards.

Additionally, the bill outlines provisions for the management and administration of these funds, ensuring adherence to public bid laws and allowing for the transfer of unexpended cash balances to the next fiscal year. It requires that receipts from business operations be deposited into the respective ancillary funds and that all expenditures comply with public bid laws. The bill also stipulates that any increases in federal, interagency, statutory dedications, or self-generated revenues require approval from the division of administration and the Joint Legislative Committee on the Budget (JLCB). The effective date for this legislation is set for July 1, 2025.