Assigned to APPROP                                                                                                                                                                                                                                         AS ENACTED
 
 
 
 
ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
 
 
FACT SHEET FOR h.b. 2862/s.b. 1729
 
general appropriations act; 2022-2023
Purpose
Makes session law changes relating to general appropriations necessary to implement the FY 2023 state budget.
Background
The Arizona Constitution prohibits substantive law from being included in the general appropriations, capital outlay appropriations and supplemental appropriations bills. However, it is often necessary to make statutory and session law changes to effectuate the budget. Thus, separate bills called budget reconciliation bills (BRBs) are introduced to enact these provisions. Because BRBs contain substantive law changes, the Arizona Constitution provides that they become effective on the general effective date, unless an emergency clause is enacted.
The Joint Legislative Budget Committee (JLBC) Baseline includes an estimate of spending necessary to meet requirements of statutory formulas and other obligations (FY 2023 JLBC Baseline).
H.B. 2862 contains the budget provisions for changes relating to general appropriations.
Summary of Changes |
Source |
Comments |
FY 2023 Changes |
Credit Lending Report   |
GF |
  |
200,000 |
Major Footnote Changes
1. Removes the requirement that ADOA charge state agencies no more than $10.42 per user per month for the statewide email and calendar service.
2. Removes the requirement for JLBC to review the report submitted by ADOA on the results of the travel reduction pilot program.
3. Exempts the FY 2023 appropriation relating to Health Care Interoperability Grants from lapsing until July 1, 2025.
4. Requires ADOA to distribute $1,000,000 from the election security grants to one or more county recorders to test ballot paper in tabulation systems with outlined security features and requires the features to be used to authenticate the ballot as an official ballot.
5. Prohibits the specified security features from identifying a particular elector.
6. Requires the portion of the ADOA appropriation designated for testing ballot paper to allow for different sized ballots.
7. Requires ADOA, by May 1, 2023, to compile a report from the selected counties on recommended ballot security features and submit that report to the President of the Senate, Speaker of the House of Representatives and Secretary of State.
8. Requires ADOA, to distribute $500,000 out of the $1,500,000 election security grants to procure, install and maintain photo video surveillance 24 hours per day, seven days per week for secure ballot boxes in specified counties.
9. Requires the portion of the ADOA appropriation designated for fire incident management system grants to be used to provide grants to municipal fire departments and fire districts for hardware and software that meet specified criteria.
10. Exempts the FY 2022 appropriation for the Enduring Freedom Memorial repair from lapsing until July 1, 2023.
11. Allocates $20,000,000 of the ADOA appropriation for the School Safety Interoperability Fund to be distributed as follows:
a)   $3,050,000 to the Maricopa County Sheriff;
b)   $2,000,000 to the Tucson Police Department;
c)   $1,800,000 to the Pinal County Sheriff;
d)   $1,800,000 to the Yavapai County Sheriff;
e)   $1,500,000 to the Cochise County Sheriff;
f) $1,250,000 to the Navajo County Sheriff;
g)   $1,350,000 to the Yuma Police Department;
h)   $1,250,000 to the Mohave County Sheriff;
i) $1,250,000 to the Coconino County Sheriff;
j) $1,000,000 to the Apache County Sheriff;
k)   $1,000,000 to the Gila County Sheriff;
l) $750,000 to the Santa Cruz County Sheriff;
m) $750,000 to the Graham County Sheriff;
n)   $750,000 to the La Paz County Sheriff; and
o)   $500,000 to the Greenlee County Sheriff.
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes |
Source |
Comments |
FY 2023 Changes |
Formula |
GF |
  |
65,300,000 |
Increased Eligibility Determination |
GF |
  |
4,500,000 |
Eligibility Determination Older Foster Care Youth |
GF |
18 to 26 years old |
200,000 |
Transfer Suicide Prevention Coordinator |
GF |
Transfer to DHS |
(100,000) |
Federal IT Regulation Compliance |
GF |
  |
300,000 |
American Indian Health Program SMI Integration |
GF |
  |
200,000 |
Chiropractic Care |
GF |
  |
3,400,000 |
Postpartum Care |
GF |
  |
2,700,000 |
EPD Provider Rate Increases |
GF |
11 percent |
24,200,000 |
Secure Behavioral Health Facility Provider Rate Increase |
GF |
Beginning FY 2024 |
10,000,000 |
Pregnancy Care Provider Rate Increase |
GF |
  |
10,000,000 |
Diabetes Management |
GF |
  |
700,000 |
Behavioral Health Provider Rate Increase |
GF |
2.5 percent |
7,500,000 |
Pediatric Skilled Nursing Facilities Rate Increase |
GF |
  |
144,000 |
Major Footnote Changes
12. Requires AHCCCS, by October 1, 2022, to report to JLBC on the actual distribution of rate increases relating to behavioral health providers.
13. Requires AHCCCS to, by July 1, 2023, receive Centers for Medicare and Medicaid Services (CMS) authorization before expending monies relating to postpartum care.
14.  Requires AHCCCS, pending CMS approval, to distribute a differential adjusted payment of $1,250 per day to 24-bed pediatric skilled nursing facilities offering skilled nursing services in place of intensive care services.
15. Requires monies appropriated for the secure behavioral health residential facilities support five licensed secure behavioral health residential facilities to provide secure on-site supportive treatment to persons determined to be seriously mentally ill, chronically resistant to treatment and who are placed in the facility on a court order.
16. Requires three secure behavioral health residential facilities to be located in the central geographic service area, one to be located in the north geographic service area and one to be located in the south geographic service area.
17. Requires AHCCCS to allocate up to $5,000,000 for each recipient facility, prioritizing facilities that can open within 12 months after the effective date.
18. Specifies that the appropriation relating to the Arizona Long Term Care System includes $24,200,000 from the state GF, $19,400,000 from county funds and $100,100,000 in Medicaid Expenditure Authority to provide an 11 percent increase to provider rates for both home and community-based services and skilled nursing facilities.
19. Requires AHCCCS to prioritize health professional shortages in distributing urban graduate medical education payments.
20. Specifies that the Health Care Investment Fund assessment includes $400,000,000 in expenditure authority for expanded direct payments.
21. Increases, from $500,000 to $1,000,000, the threshold for JLBC review relating to AHCCCS expenditures.  
22. Increases the physician fee schedule rates associated with the AHCCCS global obstetrical package by 88 percent.
Attorney General (AG)
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes |
Source |
Comments |
FY 2023 Changes |
Additional Office of Victims Services Staff |
GF |
2 FTEs |
200,000 |
Major Footnote Changes
23. Exempts the $500,000 FY 2022 appropriation from the Risk Management Revolving Fund for election litigation expenses from lapsing through FY 2023.
State Board for Charter Schools
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes |
Source |
Comments |
FY 2023 Changes |
2022 IT Upgrade |
GF |
116,000 Ongoing / 389,000 Onetime |
505,000 |
Additional Staff |
GF |
4 FTEs |
500,000 |
AG Legal Services |
GF |
1 FTE |
100,000 |
Department of Child Safety (DCS)  
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes |
Source |
Comments |
FY 2023 Changes |
Federal Match Change |
GF |
 Beginning FY 2024 |
7,500,000 |
Healthy Families Expansion |
GF |
  |
10,000,000 |
Increase Foster Child Daily Stipend |
GF |
From $1.41 to $2.82 |
4,800,000 |
Increase Monthly Kinship Stipend |
GF |
$75 to $300 |