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AZ SB1807

AZ SB1807
Encumbered monies; unauthorized use; withholding


summary

Introduced
02/05/2026
In Committee
Crossed Over
Passed
Dead

Introduced Session

Fifty-seventh Legislature - Second Regular Session (2026)

Bill Summary

AN ACT Amending section 35-151, Arizona Revised Statutes; amending title 35, chapter 1, article 6, Arizona Revised Statutes, by adding section 35-216; amending sections 42-5029 and 43-206, Arizona Revised Statutes; relating to state monies.

AI Summary

This bill makes several changes to Arizona law regarding state monies and their use. It clarifies that once an "encumbrance document," which is a document used to reserve funds for a specific future expenditure, is approved and a purchase order is completed, the reserved amount must be held until the money is authorized to be released, regardless of when appropriations normally lapse (expire). Additionally, it establishes a process where any member of the legislature can file a complaint with the Attorney General if a county, city, or town is found to have spent legislative appropriations for purposes other than those intended. If the Attorney General determines misspent public monies have not been fully recovered, the State Treasurer will withhold and redistribute state-shared revenues (money collected by the state and then distributed to local governments) from the offending entity to other counties, cities, and towns until the misspent funds are recovered, with specific provisions to prevent withholding funds needed for debt service on existing bonds. This withholding mechanism is also applied to the Urban Revenue Sharing Fund, which distributes state income tax proceeds to cities and towns.

Committee Categories

Government Affairs

Sponsors (1)

Last Action

Senate read second time (on 02/09/2026)

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