House Bill No. by Representative McFarland aims to establish and reestablish agency ancillary funds, including internal service funds, auxiliary accounts, and enterprise funds, to support the ancillary expenses of state government. The bill outlines the appropriation of funds for the Fiscal Year 2025-2026, specifying the amounts allocated to various state institutions and agencies. It mandates that these appropriated funds be used for working capital in business enterprises that provide public, auxiliary, and interagency services, with all receipts deposited into the respective ancillary funds. The bill emphasizes compliance with public bid laws for fund expenditures and includes provisions for managing these funds, such as incorporating prior year fund equity and transferring unexpended cash balances to the state treasury.

Additionally, the bill requires agencies with significant appropriations of $30 million or more to include internal auditing positions in their budget requests to ensure adherence to professional auditing standards. It stipulates that any increase in revenues must be approved by the commissioner of administration and the Joint Legislative Committee on the Budget. The bill also allows the treasurer to invest excess cash funds and authorizes the commissioner to transfer functions and resources between departments to enhance operational efficiency, with certain exceptions. The effective date of the Act is set for July 1, 2025.