HB 2895 — general appropriations act; 2021-2022.

State general fund                 $  16,726,400 Air quality fund                        1,499,100 Sec.

StatesARIZONA theHEALTH LegislatureCARE intendsCOST theCONTAINMENT moniesSYSTEM appropriated                                                    to2021-22 FTE positions                             2,348.3 Operating lump sum appropriation  $  112,240,600 Administration ADOA data center                       19,325,800 DES foreligibility                        child-care88,874,500 providerProposition rate204 increases— beAHCCCS contingentadministration on                      available13,964,300 fundingProposition 204 — DES eligibility     44,358,700 Medicaid services Traditional medicaid services       6,858,335,700 Proposition 204 services            6,504,234,100 Adult expansion services            1,569,961,900 Comprehensive medical and notdental continueprogram                      227,089,300 KidsCare services                     141,691,200 ALTCS services                      2,022,877,700 Behavioral health services in futureschools                           years10,003,300 afterNonmedicaid thebehavioral appropriatedhealth moniesservices haveCrisis beenservices                        spent.16,391,300 Nonmedicaid seriously mentally ill services                         77,646,900 Supported housing                      65,324,800 Onetime substance use disorder services fund deposit                 6,000,000 Hospital payments Disproportionate share payments         5,087,100 Disproportionate share payments — voluntary match                      48,666,500 Rural hospitals                        28,612,400 Graduate medical education            351,322,800 Targeted investments program       50,000,000 Total appropriation and expenditure authority — Arizona health                      care cost containment system      $18,262,008,900 Fund sources:

10.State general fund                $ 1,916,287,300 Budget neutrality compliance fund       4,076,200 Children's health insurance program fund                        117,754,900 Prescription drug rebate fund — state                       175,237,600 Seriously mentally ill housing trust fund                      200,000 Substance abuse services fund           2,250,200 Tobacco products tax fund — emergency health services account                              17,921,600 Tobacco tax and health care fund — medically needy account      69,002,100 Expenditure authority              15,959,279,000 Operating budget The amount appropriated for the DES eligibility line item shall be used for intergovernmental agreements with the department of economic security for eligibility determination and other functions.

AppropriatesThe anstate additionalgeneral $560,000fund toshare ADEQmay be used for one-timeeligibility startupdetermination costsfor ofother programs administered by the Surfacedivision Waterof Protectionbenefits Programand frommedical eligibility based on the Voluntaryresults Vehicleof Repairthe andArizona Retrofitrandom Fund.moment sampling survey.

11.The amounts included in the proposition 204 — AHCCCS administration, proposition 204 — DES eligibility and proposition 204 services line items include all available sources of funding consistent with section 36-2901.01, subsection B, Arizona Revised Statutes.

RemovesOf appropriationsthe amount appropriated for the operating lump sum, $100,000 shall be used for a suicide prevention coordinator to assist school districts and charter schools in suicide prevention efforts.  The Arizona health care cost containment system administration, in consultation with the Departmentdepartment of Forestryeducation, andshall Firereport Managementto forthe governor, the healthypresident forestof initiativethe senate, the speaker of the house of representatives, the director of the joint legislative budget committee and firethe suppressiondirector thatof werethe fundedgovernor's inoffice HBof 2001strategic duringplanning and budgeting on or before September 1, 2022 on the 1suicide Specialprevention Session.coordinator's accomplishments in fiscal year 2021-2022.

Medical services and behavioral health services Before making fee-for-service program or rate changes that pertain to fee-for-service rate categories, the Arizona health care cost containment system administration shall report its expenditure plan for review by the joint legislative budget committee.

The Arizona health care cost containment system administration shall report to the joint legislative budget committee on or before March 1, on preliminary actuarial estimates of the capitation rate changes for the following fiscal year along with the reasons for the estimated changes.

For any actuarial estimates that include a range, the total range from minimum to maximum may not be more than two percent.

Before implementing any changes in capitation rates, the administration shall report its expenditure plan for review by the joint legislative budget committee.

Before the administration implements any change in policy affecting the amount, sufficiency, duration and scope of health care services and who may provide services, the administration shall prepare a fiscal impact analysis on the potential effects of this change on the following year's capitation rates.

If the fiscal impact analysis demonstrates that this change will result in additional state costs of $500,000 or more for any fiscal year, the administration shall submit the policy change for review by the joint legislative budget committee.

The legislature intends that the percentage attributable to administration and profit for the regional behavioral health authorities be nine percent of the overall capitation rate.

The Arizona health care cost containment system administration shall transfer up to $1,200,000 from the traditional medicaid services line item for fiscal year 2021-2022 to the attorney general for costs associated with e-cigarette enforcement and tobacco settlement litigation.

The Arizona health care cost containment system administration shall transfer $836,000 from the traditional medicaid services line item for fiscal year 2021-2022 to the department of revenue for enforcement costs associated with the March 13, 2013 master settlement agreement with tobacco companies.

On or before June 30, 2022, the Arizona health care cost containment system administration shall report to the joint legislative budget committee on the progress in implementing the Arnold v.

Sarn lawsuit settlement.  The report shall include, at a minimum, the administration's progress toward meeting all criteria specified in the 2014 joint stipulation, including the development and estimated cost of additional behavioral health service capacity in Maricopa county for supported housing services for 1,200 class members, supported employment services for 750 class members, eight assertive community treatment teams and consumer operated services for 1,500 class members.

The administration shall also report by fund source the amounts it plans to use to pay for expanded services.

On or before September 30, 2022, the Arizona health care cost containment system administration shall report to the joint legislative budget committee on its progress in implementing services specified in the housing and health opportunities section 1115 waiver amendment.

The report shall include, at a minimum, the types of services provided for eligible AHCCCS members, expenditures by service category, the number of members receiving services by eligibility category, the number of members waitlisted for housing services and progress toward achieving program outcomes, including changes in hospital utilization rates and utilization of primary care and preventive health services.

The appropriated amount for the supported housing line item includes $60,000,000 of federal medicaid expenditure authority.

 If the administration's housing and health opportunities section 1115 waiver amendment is denied federal approval, the amount of $60,000,000 of federal medicaid expenditure authority is reduced from the supported housing line item appropriation.

Long-term care Any federal monies that the Arizona health care cost containment system administration passes through to the department of economic security for use in long-term care for persons with developmental disabilities do not count against the long-term care expenditure authority.

Pursuant to section 11-292, subsection B, Arizona Revised Statutes, the county portion of the fiscal year 2021-2022 nonfederal costs of providing long-term care system services is $283,194,000. This amount is included in the expenditure authority fund source.

Any supplemental payments received in excess of $109,928,700 for nursing facilities that serve Arizona long-term care system medicaid patients in fiscal year 2021-2022, including any federal matching monies, by the Arizona health care cost containment system administration are appropriated to the administration in fiscal year 2021-2022.

Before spending these increased monies, the administration shall notify the joint legislative budget committee and the governor's office of strategic planning and budgeting of the amount of monies that will be spent under this provision.  These payments are included in the expenditure authority fund source.

Payments to hospitals The $5,087,100 appropriation for disproportionate share payments for fiscal year 2021-2022 made pursuant to section 36-2903.01, subsection O, Arizona Revised Statutes, includes $4,202,300 for the Maricopa county health care district and $884,800 for private qualifying disproportionate share hospitals.

Any monies received for disproportionate share hospital payments from political subdivisions of this state, tribal governments and any university under the jurisdiction of the Arizona board of regents, and any federal monies used to match those payments, in fiscal year 2021-2022 by the Arizona health care cost containment system administration in excess of $48,666,500 are appropriated to the administration in fiscal year 2021-2022.

Before spending these increased monies, the administration shall notify the joint legislative budget committee and the governor's office of strategic planning and budgeting of the amount of monies that will be spent under this provision.

The expenditure authority fund source includes voluntary payments made from political subdivisions for payments to hospitals that operate a graduate medical education program or treat low-income patients and for payments to qualifying providers affiliated with teaching hospitals.

The political subdivision portions of the fiscal year 2021-2022 costs of graduate medical education, disproportionate share payments — voluntary match, traditional medicaid services, proposition 204 services and adult expansion services line items are included in the expenditure authority fund source.

Any monies for graduate medical education received in fiscal year 2021-2022, including any federal matching monies, by the Arizona health care cost containment system administration in excess of $351,322,200 are appropriated to the administration in fiscal year 2021-2022.

Before spending these increased monies, the administration shall notify the joint legislative budget committee and the governor's office of strategic planning and budgeting of the amount of monies that will be spent under this provision.

Notwithstanding section 36-2903.01, subsection G, paragraph 9, subdivisions (a), (b) and (c), Arizona Revised Statutes, the amount for graduate medical education includes $3,333,400 from the state general fund and $7,782,600 from expenditure authority for the direct and indirect costs of graduate medical education programs located in a county with a population of less than five hundred thousand persons.  The state general fund amount may supplement, but not supplant, voluntary payments made from political subdivisions for payments to hospitals that operate a graduate medical education program.

The administration shall prioritize distribution to programs at hospitals in counties with a higher percentage of persons residing in a health professional shortage area as defined in 42 Code of Federal Regulations part 5.

Notwithstanding section 36-2903.01, subsection G, paragraph 9, subdivisions (a), (b) and (c), Arizona Revised Statutes, the amount for graduate medical education includes $2,666,600 from the state general fund and $6,225,700 from expenditure authority for the direct and indirect costs of graduate medical education programs located in a county with a population of more than five hundred thousand persons.  The state general fund amount may supplement, but not supplant, voluntary payments made from political subdivisions for payments to hospitals that operate a graduate medical education program.

The administration shall prioritize distribution to programs at hospitals in counties with a higher percentage of persons residing in a health professional shortage area as defined in 42 Code of Federal Regulations part 5.

Monies appropriated for graduate medical education in this section are exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until June 30, 2022.

Other On or before July 1, 2022, the Arizona health care cost containment system administration shall report to the director of the joint legislative budget committee the total amount of medicaid reconciliation payments and penalties received on or before that date since July 1, 2021.

The nonappropriated portion of the prescription drug rebate fund established by section 36-2930, Arizona Revised Statutes, is included in the federal portion of the expenditure authority fund source.

Sec.|10.

BOARD OF ATHLETIC TRAINING                                                     2021-22 FTE positions                                 1.5 Lump sum appropriation               $ 130,500 Fund sources:

Athletic training fund               $ 130,500 Sec.|11.

ATTORNEY GENERAL — DEPARTMENT OF LAW                                                     2021-22 FTE positions                               624.7 Operating lump sum appropriation     $ 55,707,300 Attorney stipend/retention bonus        2,000,000 Capital postconviction prosecution        824,800 Child and family advocacy centers         600,000 Criminal division major fraud unit      1,139,000 Internet crimes against children enforcement                           1,250,000 Expert witness and outside counsel      1,200,000 Federalism unit                         1,248,900 Government accountability and special litigation                    1,252,000 Study committee on missing and murdered indigenous peoples         40,000 Organized retail theft task force                            1,500,000 Risk management interagency service agreement                     9,927,300 State grand jury                          185,200 Southern Arizona law enforcement        1,571,300 Technology company antitrust            1,000,000 Tobacco enforcement                       834,200 Victims' rights                       3,783,300 Voter fraud unit                      530,000 Total appropriation — attorney general — department of law                     $84,593,300 Fund sources:

State general fund                   $ 25,326,000 Antitrust enforcement revolving fund                                  1,152,500 Attorney general legal services cost allocation fund                  2,166,600 Collection enforcement revolving fund                                  7,132,700 Consumer protection–consumer fraud revolving fund                 16,724,400 Interagency service agreements fund    16,980,500 Internet crimes against children enforcement fund                        900,000 Risk management revolving fund         10,427,300 Victims' rights fund                    3,783,300 All monies appropriated to the attorney general legal services line item in the department of child safety budget do not count toward the attorney general's interagency service agreements fund appropriation in fiscal year 2021-2022.

Within ten days after receiving a complaint alleging a violation of section 15-511, Arizona Revised Statutes, the attorney general shall forward a copy of the complaint to the governor, the president of the senate and the speaker of the house of representatives.

The amount appropriated for the child and family advocacy centers line item is allocated to the child and family advocacy center fund established by section 41-191.11, Arizona Revised Statutes.  The $900,000 appropriation from the internet crimes against children enforcement fund established by section 41-199, Arizona Revised Statutes, and the $350,000 appropriation from the state general fund for the internet crimes against children enforcement line item are continuing appropriations and are exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until June 30, 2023.

The $1,000,000 appropriation for the technology company antitrust line item shall be used to employ or retain attorneys to investigate and pursue enforcement actions against technology companies that engage in anticompetitive, anticonsumer or monopolistic behavior and is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations.

The attorney general shall establish an organized retail theft task force to combat crimes that relate to stealing, embezzling or obtaining retail merchandise by fraud, false pretenses or other illegal means for the purpose of reselling the items or for reentering the items into commerce.

The task force shall investigate only those offenses or violations that are under the attorney general's jurisdiction as prescribed by section 21-422, Arizona Revised Statutes.

The attorney general shall invite federal, state and local law enforcement personnel to participate in the task force in order to more effectively use the combined skills, expertise and resources of law enforcement personnel.  The task force shall review, investigate and prosecute appropriate cases brought before the task force by law enforcement agencies or authorized loss prevention personnel.

A member of the legislature may submit the name of a certified peace officer to the attorney general and recommend the officer's placement on the task force.  Members of the task force shall investigate, apprehend and prosecute, as appropriate, individuals or entities that participate in the purchase, sale or distribution of stolen property from a retail establishment or through the use of an internet or network site and shall target individuals or entities that commit theft and other property crimes for financial gain.  The attorney general may enter into one or more intergovernmental agreements with other state and local law enforcement agencies and with any similar organized retail theft task force program that coordinates a national network of coordinated task forces that assist federal, state, local and tribal law enforcement agencies in conducting investigations, forensic examinations and prosecutions related to organized retail theft.  The task force shall consist of at least one full-time prosecutor, paralegal and support staff person, at least two investigators and four peace officers.  The task force shall have regularly scheduled meetings to review cases and provide updates on ongoing cases to all members of the task force.  On or before July 1 of each year the task force is in existence, the task force shall submit a report to the legislature on the task force's activities and any recommendations for legislative action relating to criminal penalties for crimes that have a negative impact on this state's economy.  The task force ends on July 1, 2029.

The $1,500,000 appropriation for the organized retail theft task force line item shall be used for operational expenses of the organized retail task force and for hiring one attorney, one paralegal, two investigators and one support staff person within the office of the attorney general and four peace officers who are assigned to the task force to focus specifically on investigating and prosecuting organized retail crime.

Through June 30, 2023, the attorney general may not represent or provide legal advice to the secretary of state or the department of state on any matter.

Sec.

AppropriatesBOARD anOF additionalBARBERS $5,000,000                                                    from2021-22 theFTE statepositions                                 General4.0 FundLump forsum Racetrackappropriation               Purse$ and419,200 MaintenanceFund andsources: Operations Funding to be distributed based on the three-year average of race days reflected in the length of a race-track permit.

Board of barbers fund                $ 419,200 Sec.

AppropriatesBOARD $95,000OF andBEHAVIORAL 1HEALTH FTEEXAMINERS from                                                    the2021-22 stateFTE Generalpositions                                Fund17.0 toLump thesum Industrialappropriation               Commission$ of1,818,200 Arizona.Fund sources:

StatesBoard theof appropriationbehavioral ishealth intended||examiners tofund                     be$ used1,818,200 onlySec. for municipal firefighter cancer Amendment explanation prepared by T.

Grubbs Phone Number x63040 ls 6/23/2021 reimbursement administrative costs and does not convey any responsibility for firefighter cancer compensation and benefits claims on to the state.

SpecifiesSTATE theBOARD moniesFOR forCHARTER theSCHOOLS Family                                                    Health2021-22 PilotFTE Programpositions                                must24.0 beLump distributedsum toappropriation               at$ least2,152,100 twoFund nonprofits,sources: as opposed to just one.

State general fund                   $ 2,152,100 Sec.

ReducesDEPARTMENT theOF StateCHILD ParksSAFETY Heritage                                                    Fund2021-22 DepositFTE frompositions                             $10,000,0003,203.1 toOperating $5,000,000.lump sum appropriation     $113,172,200 Additional operating resources Attorney general legal services        25,522,800 Caseworkers                           113,949,000 General counsel                           161,700 Inspections bureau                      2,548,300 New case aides                          3,305,900 Office of child welfare investigations                        9,964,800 Records retention staff                   600,000 Training resources                      9,150,000 Out-of-home placements Congregate group care                 114,927,100 Extended foster care                   14,437,200 Foster home placement                  51,929,500 Foster home recruitment, study and supervision                32,753,600 Kinship care                            5,000,000 Permanent placements Adoption services                     278,258,500 Permanent guardianship subsidy         12,516,900 Support services DCS child care subsidy                152,075,400 In-home mitigation                     28,988,100 Out-of-home support services          116,164,000 Preventive services                15,148,300 Comprehensive health plan Comprehensive health plan services    197,055,400 Comprehensive health plan administration                       29,862,500 Comprehensive health plan premium tax                         4,405,100 Total appropriation and expenditure authority — department of child safety                      $ 1,331,896,300 Fund sources:

State general fund                $  408,432,200 Federal child care and development fund block grant        130,916,000 Federal temporary assistance for needy families block grant          159,091,100           Child abuse prevention fund             1,459,300 Children and family services training program fund                   217,000 Child safety expenditure authority    630,838,800 Child welfare licensing fee fund          941,900 Additional operating resources The department of child safety shall provide training to any new child safety FTE positions before assigning any client caseload duties to any of these employees.

The legislature intends that the department of child safety use its funding to achieve a one hundred percent investigation rate.

All expenditures made by the department of child safety for attorney general legal services shall be funded only from the attorney general legal services line item.  Monies in department of child safety line items intended for this purpose shall be transferred to the attorney general legal services line item before expenditure.

Of the amount appropriated for the DCS child care subsidy line item, a total of $90,400,000 from the federal child care and development fund block grant is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations.

Out-of-home placements The department of child safety may transfer up to ten percent of the total amount of federal temporary assistance for needy families block grant monies appropriated to the department of economic security and the department of child safety to the social services block grant.

Before transferring federal temporary assistance for needy families block grant monies to the social services block grant, the department of child safety shall report the proposed amount of the transfer to the director of the joint legislative budget committee.  This report may be in the form of an expenditure plan that is submitted at the beginning of the fiscal year and updated, if necessary, throughout the fiscal year.

The amount appropriated for kinship care shall be used for a stipend of $75 per month for a relative caretaker, including a grandparent, any level of great-grandparent or any nongrandparent relative, or a caretaker of fictive kinship, if a dependent child is placed in the care of a relative caretaker or caretaker of fictive kinship pursuant to department guidelines.

The department shall provide the stipend on behalf of all children placed with an unlicensed kinship foster care parent.

The unlicensed kinship foster care parent is not required to file an application to receive the stipend.  Before changing the eligibility for the program or the amount of the stipend, the department shall submit a report for review by the joint legislative budget committee detailing the proposed changes.

Departmentwide The amount appropriated for any line item may not be transferred to another line item or to the operating budget unless the transfer is reviewed by the joint legislative budget committee, except that transfers between any two line items relating to the comprehensive health plan are not subject to review.

Child safety expenditure authority includes all department funding sources excluding the state general fund, the federal child care and development fund block grant, the federal temporary assistance for needy families block grant, the child abuse prevention fund and the children and family services training program fund.

On or before December 1, 2021, the department of child safety shall submit a report to the joint legislative budget committee on the department's efforts to implement the family first prevention services act of 2018.

The report shall quantify the department's efforts in at least the following areas, including any associated fiscal impacts:

1.

Reducing the number of children placed for more than two weeks in congregate care settings, excluding qualified residential treatment programs, facilities for pregnant and parenting youth, supervised independent living and specialized programs for victims of sex trafficking.

2.

Assisting congregate care providers in attaining status as qualified residential treatment programs.

3.

Identifying alternative placements, including therapeutic foster homes, for children who would otherwise be placed in congregate care.

4.

Expanding evidence-based, in-home parent skill-based programs and mental health and substance abuse prevention and treatment services.

Benchmarks For the purposes of this section, "backlog case":

1.

Means any nonactive case for which documentation has not been entered in the child welfare automated system for at least sixty days and for which services have not been authorized for at least sixty days and any case that has had an investigation, has been referred to another unit and has had no contact for at least sixty days.

2.

Includes any case for which the investigation has been open without any documentation or contact for at least sixty days, any case involving in-home services for which there has been no contact or services authorized for at least sixty days and any case involving foster care in which there has been no contact or any documentation entered in the child welfare automated system for at least sixty days.

For the purposes of this section, "open report" means a report that is under investigation or awaiting closure by a supervisor.

On or before February 28, 2022 and August 31, 2022, the department of child safety shall present a report to the joint legislative budget committee on the progress made during July 2021 through December 2021 and January 2022 through June 2022, respectively, in meeting the caseload standard and reducing the number of backlog cases and out-of-home children.  Each report shall include the number of backlog cases, the number of open reports, the number of out-of-home children and the caseworker workload in comparison to the previous six months.  Each report shall provide the number of backlog cases by disposition, including the number of backlog cases in the investigation phase, the number of backlog cases associated with out-of-home placements and the number of backlog cases associated with in-home cases.

To determine the caseworker workload, the department shall report the number of case-carrying caseworkers at each field office and the number of investigations, in-home cases and out-of-home children assigned to each field office.

For backlog cases, the department's benchmark is 1,000 cases.

For open reports, the department's benchmark is fewer than 8,000 open reports.

For out-of-home children, the department's benchmark is 13,964 children.

If the department of child safety has not submitted a required report within thirty days after the report is due, the director of the joint legislative budget committee shall inform the general accounting office of the department of administration, which shall withhold two percent of the department of child safety's operating lump sum semiannual budget allocation until the department of child safety submits the required report.

Sec.

ExtendsSTATE theBOARD lapsingOF dateCHIROPRACTIC forEXAMINERS the                                          Arizona2021-22 TrailFTE appropriationpositions                                 through5.0 JuneLump 2023.sum appropriation               $ 450,600 Fund sources:

Board of chiropractic examiners ||fund                               $ 450,600 Sec.

LimitsARIZONA theCOMMERCE numberAUTHORITY of                                                    FTE2021-22 positionsOperating thatlump thesum Secretaryappropriation     of$ State10,000,000 isArizona permittedcompetes tofund hiredeposit           to5,500,000 serveBlockchain/wearable asresearch            legal5,000,000 advisorFrankfurt, andGermany totrade representoffice           the250,000 SecretaryIsrael oftrade Stateoffice                       to175,000 oneMexico FTEtrade position.offices                  500,000 Major events fund deposit             7,500,000 Total appropriation — Arizona commerce                    authority                            $ 28,925,000 Fund sources:

ProhibitsState general fund                   $ 28,925,000 Pursuant to section 43-409, Arizona Revised Statutes, of the Secretaryamounts listed above, $15,500,000 of Statethe fromstate makinggeneral expendituresfund orwithholding incurringtax indebtednessrevenues is allocated in fiscal year 2021-2022 to employthe outsideArizona orcommerce privateauthority, attorneysof which $10,000,000 is credited to providethe representationArizona orcommerce services.authority fund established by section 41-1506, Arizona Revised Statutes, and $5,500,000 is credited to the Arizona competes fund established by section 41-1545.01, Arizona Revised Statutes.

The Arizona commerce authority shall distribute monies appropriated in the blockchain/wearable research line item to applied research centers and institutes located in this state that specialize in blockchain or wearable technology to be allocated as follows:

1.

$2,500,000 for distribution to applied research centers that specialize in blockchain technology.

2.

$2,500,000 for distribution to applied research centers that specialize in wearable technology.

Subject to available funding, the authority shall distribute monies in the blockchain/wearable research line item to any applied research center in increments of up to $250,000 within thirty days after the applied research center notifies the authority in writing that the applied research center has received a matching amount from sources other than this state.  The authority is exempt from the requirements of title 41, chapter 23, Arizona Revised Statutes, for the purposes of making the distributions to the applied research centers.

An applied research center that receives a distribution pursuant to this section must collaborate with universities, nonprofit business associations, health science research centers, institutes or other technology businesses that do business in this state.  On or before September 15, 2025, the applied research center or institute shall return to the authority all monies received by the applied research center or institute pursuant to this section that remain unexpended and unencumbered on September 1, 2025.  The authority shall deposit the returned monies in the state general fund.  The authority shall notify the president of the senate and the speaker of the house of representatives on or before July 1, 2022 and July 1, 2023 if the authority has not distributed any monies pursuant to this section.

An applied research center or institute that receives monies pursuant to this section shall annually submit an expenditure and performance report to the authority.

The authority shall transmit the report to the joint legislative budget committee and the governor's office of strategic planning and budgeting on or before February 1, 2022, 2023, 2024, 2025 and 2026.

The appropriation made in the blockchain/wearable research line item is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, except that any amounts that remain unexpended and unencumbered on June 30, 2025 revert to the state general fund.

Sec.

DirectsARIZONA ADOTCOMMUNITY toCOLLEGES distribute                                                    the2021-22 $3,300,000Equalization toaid backfillCochise                              rental$ vehicle7,925,300 surchargeGraham                                 losses18,193,200 accordingNavajo                                  to9,171,000 theYuma/La VLTPaz                          excess 616,700 surchargeTotal distribution— insteadequalization ofaid                the$ 35,906,200 HURFOperating distribution.state aid Cochise                              $ 4,373,500 Coconino                                1,626,500 Gila                                      271,500 Graham                                  1,936,100 Mohave                                  1,205,500 Navajo                                  1,512,300 Pinal                                   1,356,500 Santa Cruz                                 17,100 Yavapai                                   590,500 Yuma/La Paz                           2,391,900 Total — operating state aid             $ 15,281,400 STEM and workforce programs state aid Cochise                              $ 928,400 Coconino                                  371,800 Gila                                      127,200 Graham                                    484,200 Mohave                                    465,700 Navajo                                    319,700 Pinal                                      96,500 Santa Cruz                                 29,800 Yavapai                                   699,200 Yuma/La Paz                           1,027,400 Total — STEM and workforce programs state aid                            $ 4,549,900 Rural aid Cochise                              $ 6,251,000 Coconino                                1,907,300 Gila                                      652,300 Graham                                  2,483,700 Mohave                                  2,388,900 Navajo                                  1,640,200 Pinal                                   3,666,000 Santa Cruz                                153,000 Yavapai                                 3,586,900 Yuma/La Paz                           5,270,700 Total — rural aid                       $ 28,000,000 Urban aid Maricopa                             $ 10,400,000 Pima                                  2,600,000 Total — urban aid                       $ 13,000,000 Rural county reimbursement subsidy       $ 1,773,800 Additional Gila workforce development aid                         200,000 Diné college remedial education           1,000,000 Total appropriation — Arizona community colleges                             $ 99,711,300 Fund sources:

State general fund                   $ 99,711,300 Of the $1,773,800 appropriated to the rural county reimbursement subsidy line item, Apache county receives $973,800 and Greenlee county receives $800,000.

On or before October 15, 2022, the Diné college board of regents shall submit to the governor, the speaker of the house of representatives, the president of the senate, the secretary of state and the joint legislative budget committee a report that details the course completion rate for students who received remedial education during the 2021-2022 academic year.

Sec.

ChangesREGISTRAR theOF StateCONTRACTORS Treasurer's                                                    distributions2021-22 fromFTE thepositions                               School105.6 SafetyOperating Programlump linesum itemappropriation     to$ 11,672,400 be:Office of administrative hearings ||costs                               1,017,600 Total appropriation — registrar of contractors                          $ 12,690,000 Fund sources:

a)Registrar $2,100,000of tocontractors thefund        Maricopa$ 12,690,000 CountySec. sheriff;

b) $300,000 to the Navajo County and Yavapai sheriffs;

and c) $100,000 to the Mohave County sheriff.

MovesCORPORATION theCOMMISSION $700,000                                                    appropriation2021-22 toFTE DPSpositions                               from300.9 theOperating Statelump Aidsum toappropriation     Indigent$ 27,842,400 DefenseCorporation Fundfilings, tosame-day theservice                                 Arizona417,700 CriminalUtilities Justiceaudits, Commission.studies, investigations and hearings        380,000* Total appropriation — corporation commission  $ 28,640,100 Fund sources:

State general fund                   $ 647,100 Arizona arts trust fund                    52,600 Investment management regulatory ||and enforcement fund                    745,500 Public access fund                      6,976,200 Securities regulatory and enforcement fund                      5,286,100 Utility regulation revolving fund      14,932,600 Sec.

AddsSTATE anDEPARTMENT additionalOF $1,500,000CORRECTIONS for                                                    the2021-22 ASUFTE Schoolpositions                             of9,566.0 CivicOperating andlump Economicsum Thoughtappropriation   and$ Leadership.917,888,200 Private prison per diem               215,012,100 Community corrections                  24,429,600 Inmate health care contracted services                          203,173,100 Medical staffing augmentation          15,000,000 Substance abuse treatment           5,000,600 Total appropriation — state department of corrections                         $1,380,503,600 Fund sources:

State general fund                 $1,327,159,000 State education fund for correctional education                  769,600 Alcohol abuse treatment fund              555,500 Penitentiary land fund                  2,804,000 State charitable, penal and reformatory institutions land fund                             2,661,800 Corrections fund                       30,312,300 Transition program fund                 2,400,100 Prison construction and operations fund                      12,500,000 Inmate store proceeds fund              1,341,300 Of the amount appropriated in the operating lump sum, $440,795,600 is designated for personal services and $282,452,500 is designated for employee-related expenditures.  The department shall submit an expenditure plan to the joint legislative budget committee for review before spending these monies other than for personal services or employee-related expenditures, except that until January 1, 2023, if the department makes a transfer between two line items to maximize the use of federal monies, the department shall submit an expenditure plan that is not subject to review before spending those monies.

Before placing any inmates in out-of-state provisional beds, the department shall place inmates in all available prison beds in facilities that are located in this state and that house Arizona inmates, unless the out-of-state provisional beds are of a comparable security level and price.

The state department of corrections shall forward to the president of the senate, the speaker of the house of representatives, the chairpersons of the senate and house of representatives appropriations committees and the director of the joint legislative budget committee a monthly report comparing department expenditures for the month and year-to-date as compared to prior-year expenditures on or before the thirtieth of the following month.  The report shall be in the same format as the prior fiscal year and include an estimate of potential shortfalls, potential surpluses that may be available to offset these shortfalls and a plan, if necessary, for eliminating any shortfall without a supplemental appropriation.  The report shall include the number of filled and vacant correctional officer and medical staff positions departmentwide and by prison complex.

On or before November 1, 2021, the state department of corrections shall provide a report on bed capacity to the joint legislative budget committee for review.  The report shall reflect the bed capacity for each security classification by gender at each state-run and private institution, divided by rated and total beds.  The report shall include bed capacity data for June 30, 2020 and June 30, 2021 and the projected capacity for June 30, 2022, as well as the reasons for any change within that time period.

Within the total bed count, the department shall provide the number of temporary and special use beds.

The report shall also address the department's rationale for eliminating any permanent beds rather than reducing the level of temporary beds.

The report shall also include any plans to vacate beds but not permanently remove the beds from the bed count.

If the department develops a plan after its November 1 report to open or close state-operated prison rated beds or cancel or not renew contracts for privately operated prison beds, the department shall submit a bed plan detailing the proposed bed closures for review by the joint legislative budget committee before implementing these changes.

One hundred percent of land earnings and interest from the penitentiary land fund shall be distributed to the state department of corrections in compliance with the enabling act and the Constitution of Arizona to be used to support state penal institutions.

On or before December 15, 2021 and July 15, 2022, the state department of corrections shall submit a report to the joint legislative budget committee on the progress made in meeting the staffing needs for correctional officers.

Each report shall include the number of filled correctional officer positions, the number of vacant correctional officer positions, the number of people in training, the number of separations and the number of hours of overtime worked year-to-date.

The report shall detail these amounts both departmentwide and by prison complex.

On or before March 31, 2022, the state department of corrections, in cooperation with the Arizona strategic enterprise technology office, shall submit a report to the joint legislative budget committee on the progress made to incorporate all sentence calculations into the Arizona corrections information system.  The report shall also include a detailed description of any other work needed to fully implement other system functions and the cost and staffing requirements to complete that work.

Twenty-five percent of land earnings and interest from the state charitable, penal and reformatory institutions land fund shall be distributed to the state department of corrections in compliance with the enabling act and the Constitution of Arizona to be used to support state penal institutions.

Before spending any state education fund for correctional education monies in excess of $769,600, the state department of corrections shall report the intended use of the monies to the director of the joint legislative budget committee.

On or before August 1, 2O21 and February 1, 2O22, the state department of corrections shall submit a report to the joint legislative budget committee on the status of the performance measures tracked by the department as required by the Parson v.

Ryan stipulation agreement, a copy of any court-ordered compliance reports filed by the department or a contracted provider during the reporting period and a copy of any report produced by a court-appointed monitor regarding the delivery of health services during each reporting period.

Each report shall include the number of performance measures in total and by facility with which the department is not in substantial compliance, an explanation for why the department is not in substantial compliance and the department's plans to comply with the measures.

The report shall also list the measures the department is no longer required to track as a result of compliance with the stipulation.

Before implementing any changes in contracted rates for inmate health care contracted services, the state department of corrections shall submit its expenditure plan for review by the joint legislative budget committee.

On or before August 1, 2021, the state department of corrections shall transfer to the public safety personnel retirement system via the department of administration its estimated required annual contribution to the corrections officer retirement plan for fiscal year 2021-2022.

On or before December 15, 2021 and July 15, 2022, the state department of corrections shall submit a report to the joint legislative budget committee on the medical staffing augmentation line item.

The report must include, at a minimum, the actual expenditures made to date by purpose and the expenditure plan for all remaining monies by purpose.

The $15,000,000 appropriation from the state general fund for the medical staffing augmentation line item is a continuing appropriation and is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriation.

Sec.

AddsBOARD anOF additionalCOSMETOLOGY $1,000,000                                                    for2021-22 theFTE UApositions                                Center24.5 forLump thesum Philosophyappropriation               of$ Freedom.1,904,200 Fund sources:

Board of cosmetology fund            $ 1,904,200 Sec.

AddsARIZONA anCRIMINAL additionalJUSTICE totalCOMMISSION of                                                    $25,000,0002021-22 FTE positions                                11.0 Operating lump sum appropriation     $ 1,292,700 Coordinated reentry planning database                     1,000,000 State aid to thecounty threeattorneys             973,700 State Universitiesaid forto theindigent Newdefense             Economy700,000 Initiative.Victim compensation and assistance                          4,229,900 Total appropriation — Arizona criminal justice commission                   $ 8,196,300 Fund sources:

State general fund                   $ 1,000,000 Criminal justice enhancement fund         668,500 Resource center fund                      624,200 State aid to county attorneys fund        973,700 State aid to indigent defense fund        700,000 Victim compensation and assistance ||fund                                  4,229,900 All victim compensation and assistance fund monies received by the Arizona criminal justice commission in excess of $4,229,900 in fiscal year 2021-2022 are appropriated to the crime victims program.

Before spending any victim compensation and assistance fund monies in excess of $4,229,900 in fiscal year 2021-2022, the Arizona criminal justice commission shall report the intended use of the monies to the joint legislative budget committee.

All monies received by the Arizona criminal justice commission in excess of $973,700 in fiscal year 2021-2022 from the state aid to county attorneys fund established by section 11-539, Arizona Revised Statutes, are appropriated to the state aid to county attorneys program.  Before spending any state aid to county attorneys fund monies in excess of $973,700 in fiscal year 2021-2022, the Arizona criminal justice commission shall report the intended use of the monies to the joint legislative budget committee.

Sec.

AppropriatesARIZONA $250,000STATE toSCHOOLS ASUFOR toTHE expandDEAF AND THE BLIND                                                     2021-22 FTE positions                               562.2 Administration/statewide             $ 7,946,600 Phoenix day school for the Politicaldeaf        History10,678,200 Tucson campus                          12,649,600 Preschool/outreach programs             6,538,800 School bus/agency vehicle replacement                         369,000 Cooperative services                   17,914,500 Total appropriation — Arizona state schools for the deaf and Leadershipthe Program.blind           $ 56,096,700 Fund sources:

State general fund                   $ 23,865,500 Schools for the deaf and the blind fund                           14,316,700 Cooperative services fund              17,914,500 Before spending any schools for the deaf and the blind fund monies in excess of $14,316,700 in fiscal year 2021-2022, the Arizona state schools for the deaf and the blind shall report to the joint legislative budget committee the intended use of the monies.

Before spending any cooperative services fund monies in excess of $17,914,500 in fiscal year 2021-2022, the Arizona state schools for the deaf and the blind shall report to the joint legislative budget committee the intended use of the monies.

Sec.

InstructsCOMMISSION theFOR DepartmentTHE ofDEAF WaterAND ResourcesTHE (DWR)HARD toOF useHEARING the                                                    monies2021-22 inFTE thepositions                                Agua17.0 FriaOperating floodlump insurancesum studyappropriation     line$ to4,493,900 completeSupport aservices hydrologicalfor the deaf-blind                          192,000 Total appropriation — commission for the deaf and hydraulicthe study.hard of hearing         $ 4,685,900 Fund sources:

AllowsTelecommunication DWRfund tofor contact||the withdeaf                           an$ engineering4,685,900 firmSec. that has not contracted with or otherwise associated with a county flood control district in Maricopa County.

Requires the report to be completed by March 31, 2023.

MovesSTATE theBOARD deadlineOF forDENTAL DESEXAMINERS to                                                    make2021-22 aFTE depositpositions                                to11.0 theLump Unemploymentsum Compensationappropriation               Fund$ from1,842,200 JuneFund 20,sources: 2021 to July 15, 2021.

Dental board fund                    $ 1,842,200 Sec.

MovesOFFICE datesOF ofECONOMIC reportOPPORTUNITY from                                                    ADE2021-22 andFTE claimspositions                                 from5.0 politicalLump subdivisionssum toappropriation               the$ counties485,500 forFund thesources: Transwestern settlement from June 15, 2021 and June 30, 2021 to July 15, 2021 and July 30, respectively.

State general fund                   $ 485,500 Sec.

PaysDEPARTMENT offOF anECONOMIC additionalSECURITY $35,000,000                                                    of2021-22 K-12FTE rolloverpositions                             4,381.8  Operating lump sum appropriation     $163,229,600 Administration Attorney general legal services        11,540,100 Aging and increasesadult theservices averageAdult dailyservices                         membership11,205,900 (ADM)Community requirementand emergency services        3,724,000 Coordinated homeless services           2,522,600 Domestic violence prevention           14,003,700 Sexual violence services                8,000,000 Long-term care ombudsman                1,000,000 After school and summer youth program                           500,000 Benefits and medical eligibility Temporary assistance for needy families — cash benefits            22,736,400 Pandemic emergency assistance          14,546,500 Coordinated hunger services             1,754,600 Tribal pass-through funding             4,680,300 Child support enforcement County participation                    8,539,700 Developmental disabilities DDD administration                    119,354,600 DDD premium tax payment                50,055,200 Case management — medicaid            87,972,500 Home and community based services — medicaid              1,822,493,000 Institutional services — medicaid                             34,881,700 Physical and behavioral health services — medicaid         465,349,400 Medicare clawback payments              4,661,200 Targeted case management — medicaid   13,191,900 Case management — state-only           6,311,900 Home and community based services — state-only               13,589,000  Cost effectiveness study — client services                              1,220,000 Arizona early intervention program      6,319,000 State-funded long-term care services                             41,579,100 Employment and rehabilitation services JOBS                                   11,005,600 Child care subsidy                  1,273,693,000 Independent living rehabilitation services                              1,289,400 Rehabilitation services                 7,249,100 Workforce investment act services                         53,654,600 Return to 2,000work insteadgrants               7,500,000 Total appropriation and expenditure authority — department of 1,350.economic security                  $4,289,353,600 Fund sources:

State general fund                 $ 853,324,200 Federal child care and development fund block grant      1,286,155,800 Federal temporary assistance for needy families block grant           65,839,800 Federal pandemic emergency assistance fund                      14,546,500 Long-term care system fund             32,463,800 Public assistance collections fund                                    423,600 Sexual violence service fund            8,000,000 Special administration fund             4,550,000 Spinal and head injuries trust fund                                  2,340,200 Statewide cost allocation plan fund                                  1,000,000 Child support enforcement administration fund                  17,531,300 Domestic violence services fund         4,000,000 Workforce investment act grant         56,085,500 Child support enforcement administration fund expenditure authority                            43,192,400 Developmental disabilities   medicaid expenditure authority    1,873,037,300 Health care investment fund                        expenditure authority                26,863,200 Aging and adult services All domestic violence services fund monies in excess of $4,000,000 received by the department of economic security are appropriated for the domestic violence prevention line item.

Before spending these increased monies, the department shall report the intended use of monies in excess of $4,000,000 to the joint legislative budget committee.

On or before December 15, 2021, the department of economic security shall report to the joint legislative budget committee the amount of state and federal monies available statewide for domestic violence prevention funding.

The report shall include, at a minimum, the amount of monies available and the state fiscal agent receiving those monies.

The amount appropriated for the after school and summer youth program line item shall be distributed to a charitable organization that is qualified under section 501(c)(3) of the internal revenue code, that is located in the city of Phoenix and that provides after school and summer youth programs dealing with gang violence for at-risk youth.

Benefits and medical eligibility The operating lump sum appropriation may be spent on Arizona health care cost containment system eligibility determinations based on the results of the Arizona random moment sampling survey.

On or before December 15, 2021 and July 15, 2022, the department of economic security shall submit a report to the president of the senate, the speaker of the house of representatives, the chairpersons of the senate and house of representatives appropriations committees and the joint legislative budget committee on federal pandemic emergency assistance monies provided from the American rescue plan act of 2021.

The report must include, at a minimum, the actual expenditures made to date by purpose, the expenditure plan for all remaining monies by purpose and the number of individuals served.

Child support enforcement All state shares of retained earnings, fees and federal incentives in excess of $17,531,300 received by the division of child support enforcement are appropriated for operating expenditures.

New FTE positions are authorized with the increased funding.

Before spending these increased monies, the department of economic security shall report the intended use of the monies to the joint legislative budget committee.

Before the department spends any monies to replace the child support information technology system, the Arizona strategic enterprise technology office shall submit, on behalf of the department of economic security, an expenditure plan to the joint legislative budget committee for review.  The expenditure plan shall include the project cost, deliverables, timeline for completion and method of procurement consistent with the department's prior reports for its appropriation from the automation projects fund pursuant to section 41-714, Arizona Revised Statutes.

Developmental disabilities On or before September 1, 2022, the department of economic security shall report to the president of the senate, the speaker of the house of representatives, the chairpersons of the senate and house of representatives appropriations committees and the director of the joint legislative budget committee any new placement into a state-owned ICF-IID or the Arizona training program at the Coolidge campus in fiscal year 2021-2022 and the reason this placement, rather than a placement into a privately run facility for persons with developmental disabilities, was deemed as the most appropriate placement.

The department shall also report if no new placements were made.  On or before September 1, 2022, the department shall also report to the director of the joint legislative budget committee the total costs associated with the Arizona training program at Coolidge in fiscal year 2021-2022.

The department shall report to the joint legislative budget committee on or before March 1 of each year on preliminary actuarial estimates of the capitation rate changes for the following fiscal year along with the reasons for the estimated changes.

For any actuarial estimates that include a range, the total range from minimum to maximum may not be more than two percent.

Before implementing any changes in capitation rates for the long-term care system, the department shall submit a report for review by the joint legislative budget committee.

Before the department implements any change in policy affecting the amount, sufficiency, duration and scope of health care services and who may provide services, the department shall prepare a fiscal impact analysis on the potential effects of this change on the following year's capitation rates.

If the fiscal impact analysis demonstrates that this change will result in additional state costs of $500,000 or more for any fiscal year, the department shall submit the policy change for review by the joint legislative budget committee.

Before implementing developmental disabilities or long-term care statewide provider rate adjustments that are not already specifically authorized by the legislature, court mandates or changes to federal law, the department shall submit a report for review by the joint legislative budget committee that includes, at a minimum, the estimated cost of the provider rate adjustment and the ongoing source of funding for the adjustment, if applicable.

Before transferring any monies in or out of the case management —medicaid, case management — state-only and DDD administration line items, the department shall submit a report for review by the joint legislative budget committee.

The department shall submit an expenditure plan report to the joint legislative budget committee of any new division of developmental disabilities salary adjustments not previously reviewed by the joint legislative budget committee.

On or before August 1, 2021, the department shall report to the joint legislative budget committee the number of filled positions for case managers and non-case managers in the division of developmental disabilities as of June 30, 2021.

The department shall submit an expenditure plan of its staffing levels for review by the joint legislative budget committee if the department plans on hiring staff for non-case manager, non-case aide, non-case unit supervisor and non-case section manager positions above the staffing level indicated in the August 1, 2021 report.

The legislature intends that the division reallocate $15,000,000 of its base appropriation that the division spent for onetime developmental disabilities purposes in fiscal year 2020-2021 in order to partially finance the $30,000,000 provider rate increase in fiscal year 2021-2022.

Employment and rehabilitation services On or before September 15, 2021 and March 15, 2022, the department of economic security shall submit a report to the president of the senate, the speaker of the house of representatives, the chairpersons of the senate and house of representatives appropriations committees and the joint legislative budget committee on child care development block grant monies provided from the coronavirus aid, relief, and economic security act, the consolidated appropriations act, 2021, and the American rescue plan act of 2021.

The report must include, at a minimum, the actual expenditures made to date by purpose and, separately, by federal legislation, the expenditure plan for all remaining monies by purpose and, separately, by federal legislation, the number of children served with the monies on average each month, the average child care reimbursement rates for the entire program, including these monies, and the number of child care settings with a quality rating.

On or before March 15, 2022, the department of economic security shall submit a report to the president of the senate, the speaker of the house of representatives, the chairpersons of the senate and house of representatives appropriations committees and the joint legislative budget committee on the number of individuals who have received child care support through return to work grants and the number of those individuals who did not return to receiving unemployment insurance within six months.

Of the amount appropriated for the child care subsidy line item, a total of $1,086,612,800 from the federal child care and development fund block grant is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations.

The legislature intends that provider rate increases funded from this amount be contingent on available federal funding and not continue in future years after these monies have been spent.

The department of economic security shall forward to the joint legislative budget committee a monthly report listing data on the child care population served.

The report must include, at a minimum, in each program the number of unduplicated children enrolled in child care within the department of economic security and the department of child safety by program and the average amount paid per child plus quality-related spending.

All workforce investment act grant monies that are received by this state in excess of $56,085,500 are appropriated to the workforce investment act services line item.

Before spending these increased monies, the department shall report the intended use of monies in excess of $56,085,500 to the joint legislative budget committee.

The appropriated amount for the return to work grants line item is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until June 30, 2024.

Departmentwide The above appropriations are in addition to monies granted to this state by the federal government for the same purposes but are deemed to include the sums deposited in the state treasury to the credit of the department of economic security pursuant to section 42-5029, Arizona Revised Statutes.

The department of economic security shall forward to the president of the senate, the speaker of the house of representatives, the chairpersons of the senate and house of representatives appropriations committees and the director of the joint legislative budget committee a monthly report comparing total expenditures for the month and year-to-date as compared to prior-year totals on or before the thirtieth of the following month.

The report shall include an estimate of potential shortfalls in entitlement programs and potential federal and other monies, such as the statewide assessment for indirect costs, and any projected surplus in state-supported programs that may be available to offset these shortfalls and a plan, if necessary, for eliminating any shortfall without a supplemental appropriation.

Sec.

AppropriatesSTATE $1,500,000BOARD toOF ADEQEDUCATION from                                                    the2021-22 RecyclingFTE Fundpositions                                for19.0 depositOperating intolump tosum theappropriation   Water$ Quality2,212,800 FeeArizona Fund.empowerment scholarship account appeals                   150,000 Total appropriation — state board of education         $ 2,362,800 Fund sources:

State general fund                 $ 2,362,800 Sec.

PaysSUPERINTENDENT offOF anPUBLIC additionalINSTRUCTION $470,000,000                                                    for2021-22 theFTE retirementpositions                               or202.9 defeasanceOperating oflump thesum financingappropriation  agreement$ made13,010,600 inFormula theprograms FYBasic 2010state criminalaid                     justice4,650,447,200 reconciliationResults-based billfunding                  68,600,000 Special education fund                 36,029,200 Other state aid to districts              983,900 Classroom site fund                   977,025,600 Instructional improvement fund         63,765,400 Property tax relief Additional state aid                  460,630,300 Non-formula programs Accountability and achievement testing                              21,428,100 Adult education                         5,005,900 Alternative teacher development program                                 500,000 Arizona empowerment scholarship account administration                2,233,400 Arizona structured English immersion fund                        4,960,400 CTED completion grants                  1,000,000 CTED soft capital and equipment         1,000,000 College credit by examination incentive program                     7,472,100 College placement exam fee waiver       1,265,800 Computer science pilot program          1,000,000 Early literacy                         12,000,000 Education learning and accountability system                 5,351,900 English learner administration          6,541,600 Extraordinary special education needs fund deposit                    5,000,000 Geographic literacy                       100,000 Gifted assessments                        850,000 Jobs for aArizona Departmentgraduates                100,000 School safety program                  31,950,900 State block grant for vocational education                            11,651,800 Student level data access                 350,000 Teacher certification                   2,467,200 Tribal college dual enrollment program                             325,000 Total appropriation and expenditure           authority — superintendent of Correctionspublic prisoninstruction              facility.$6,393,046,300 Fund sources:

State general fund                 $4,869,746,700 Proposition 301 fund                    7,000,000 Permanent state school fund           309,832,400 Teacher certification fund              2,420,700 Tribal college dual enrollment program fund                            325,000 Department of education professional development revolving fund                        2,700,000 Department of education empowerment scholarship account fund                350,000 Expenditure authority               1,200,671,500 Operating budget The operating lump sum appropriation includes $683,900 and 8.5 FTE positions for average daily membership auditing and $200,000 and 2 FTE positions for information technology security services.

The amount appropriated for the department's operating budget includes $500,000 for technical assistance and state-level administration of the K-3 reading program established pursuant to section 15-211, Arizona Revised Statutes.

Any monies available to the department of education pursuant to section 42-5029, subsection E, paragraph 8, Arizona Revised Statutes, for the failing schools tutoring fund established by section 15-241, Arizona Revised Statutes, in excess of the expenditure authority amounts are allocated for the purposes of section 42-5029, subsection E, paragraph 8, Arizona Revised Statutes.

Any monies available to the department of education pursuant to section 42-5029, subsection E, paragraph 6, Arizona Revised Statutes, for character education matching grants pursuant to section 15-154.01, Arizona Revised Statutes, in excess of the expenditure authority amounts are allocated for the purposes of section 42-5029, subsection E, paragraph 6, Arizona Revised Statutes.

Basic state aid The appropriation for basic state aid provides basic state support to school districts for maintenance and operations funding as provided by section 15-973, Arizona Revised Statutes, and includes an estimated $309,832,400 in expendable income derived from the permanent state school fund and from state trust lands pursuant to section 37-521, subsection B, Arizona Revised Statutes, for fiscal year 2021-2022.

Monies derived from the permanent state school fund and any other non-state general fund revenue source that is dedicated to fund basic state aid shall be spent, whenever possible, before spending state general fund monies.

Except as required by section 37-521, Arizona Revised Statutes, all monies received during the fiscal year from national forests, interest collected on deferred payments on the purchase of state lands, income from investing permanent state school funds as prescribed by the enabling act and the Constitution of Arizona and all monies received by the superintendent of public instruction from whatever source, except monies received pursuant to sections 15-237 and 15-531, Arizona Revised Statutes, when paid into the state treasury are appropriated for apportionment to the various counties in accordance with law.

An expenditure may not be made except as specifically authorized above.

Any monies available to the department of education pursuant to section 42-5029, subsection E, paragraph 5, Arizona Revised Statutes, for the increased cost of basic state aid due to added school days in excess of the expenditure authority amounts are allocated for the purposes of section 42-5029, subsection E, paragraph 5, Arizona Revised Statutes.

Other programs Any monies available to the department of education for the classroom site fund pursuant to section 37-521, subsection B, paragraph 4 and section 42-5029, subsection E, paragraph 10, Arizona Revised Statutes, in excess of expenditure authority amounts are allocated for the purposes of section 37-521, subsection B, paragraph 4 and section 42-5029, subsection E, paragraph 10, Arizona Revised Statutes.

Any monies available to the department of education from the instructional improvement fund established by section 15-979, Arizona Revised Statutes, in excess of the expenditure authority amounts are allocated for the purposes of section 15-979, Arizona Revised Statutes.

Before making any changes to the achievement testing program that will increase program costs, the department of education and the state board of education shall submit the estimated fiscal impact of those changes to the joint legislative budget committee for review.

Any monies available to the department of education for accountability purposes pursuant to section 42-5029, subsection E, paragraph 7, Arizona Revised Statutes, in excess of the expenditure authority amounts are allocated for the purposes of section 42-5029, subsection E, paragraph 7, Arizona Revised Statutes.

Monies appropriated for CTED completion grants are intended to help fund program completion for students who complete at least fifty percent of a career technical education program before graduating from high school and who successfully complete the career technical education district program after graduating from high school.

The application procedures shall award grant funding only after an eligible student has successfully completed a career technical education district program.

If the appropriated amount for CTED completion grants is insufficient to fund all grant requests from career technical education districts, the department of education shall reduce grant amounts on a proportional basis in order to cap total statewide allocations at $1,000,000.

The appropriated amount for CTED completion grants is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until June 30, 2023.

The department of education shall distribute the appropriated amount for CTED soft capital and equipment to career technical education districts with fewer than two thousand average daily membership pupils for soft capital and equipment expenses.

The appropriated amount shall be allocated on a pro rata basis based on the average daily membership of eligible career technical education districts.

The department of education shall use the appropriated amount for English learner administration to provide English language acquisition services for the purposes of section 15-756.07, Arizona Revised Statutes, and for the costs of providing English language proficiency assessments, scoring and ancillary materials as prescribed by the department of education to school districts and charter schools for the purposes of title 15, chapter 7, article 3.1, Arizona Revised Statutes.

The department may use a portion of the appropriated amount to hire staff or contract with a third party to carry out the purposes of section 15-756.07, Arizona Revised Statutes.

Notwithstanding section 41-192, Arizona Revised Statutes, the superintendent of public instruction also may use a portion of the appropriated amount to contract with one or more private attorneys to provide legal services in connection with the case of Flores v.

State of Arizona, No.

CIV 92-596-TUC-RCC.

The department of education shall use the appropriated amount for geographic literacy to issue a grant to a statewide geographic alliance for strengthening geographic literacy in this state.

The department of education shall use the appropriated amount for gifted assessments to procure an assessment that local education agencies may administer to pupils in second grade to identify gifted pupils as prescribed in section 15-779.02, Arizona Revised Statutes.

The department of education shall use the appropriated amount for jobs for Arizona graduates to issue a grant to a nonprofit organization for a JOBS for Arizona graduates program.

Any monies available to the department of education for school safety pursuant to section 42-5029, subsection E, paragraph 6, Arizona Revised Statutes, in excess of the expenditure authority amounts are allocated for the purposes of section 42-5029, subsection E, paragraph 6, Arizona Revised Statutes.

On or before December 31, 2021, the department of education shall report to the joint legislative budget committee how the monies appropriated for student level data access are being used to manage access and protect student level data as prescribed in section 15-1043, Arizona Revised Statutes.

After review by the joint legislative budget committee, in fiscal year 2021-2022, the department of education may use a portion of its fiscal year 2021-2022 state general fund appropriations for basic state aid, additional state aid or the special education fund, to fund a shortfall in funding for basic state aid, additional state aid or the special education fund, if any, that occurred in fiscal year 2020-2021.

The department shall provide an updated report on its budget status every three months for the first half of each fiscal year and every month thereafter to the president of the senate, the speaker of the house of representatives, the chairpersons of the senate and house of representatives appropriations committees, the director of the joint legislative budget committee and the director of the governor's office of strategic planning and budgeting.

Each report shall include, at a minimum, the department's current funding surplus or shortfall projections for basic state aid and other major formula-based programs and is due thirty days after the end of the applicable reporting period.

Within fifteen days after each apportionment of state aid that occurs pursuant to section 15-973, subsection B, Arizona Revised Statutes, the department shall post on its website the amount of state aid apportioned to each recipient and the underlying data.

Sec.

AllowsDEPARTMENT theOF ADOAEMERGENCY DirectorAND toMILITARY executeAFFAIRS and                                                    deliver2021-22 documents,FTE engagepositions                                fiduciaries63.1 andAdministration                       take$ or1,858,100 directEmergency allmanagement                      actions754,200 necessaryMilitary inaffairs                        connection2,083,300 withEmergency themanagement retirementmatching andfunds     defeasance1,590,300 National guard cyber response revolving fund deposit                  300,000 National guard matching funds           1,712,800 National guard tuition reimbursement                       1,000,000 Total appropriation — department of theemergency financingand agreement.military affairs       $ 9,298,700 Fund sources:

AmendmentState explanationgeneral preparedfund                   by$ T.9,298,700 The $1,712,800 national guard matching funds appropriation is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, except that all fiscal year 2021-2022 monies remaining unexpended and unencumbered on December 31, 2022 revert to the state general fund.

GrubbsThe Pageappropriated 2amount _________________________________________for 32.the national guard tuition reimbursement line item is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until September 30, 2022.

MakesSec. amounts remaining after the retirements or defeasances are executed revert to the state general fund.

32.

DEPARTMENT OF ENVIRONMENTAL QUALITY                                                     2021-22 FTE positions                               322.0 Operating lump sum appropriation     $ 48,297,700 Safe drinking water program             1,854,700 Emissions control contractor payment                            26,219,500 Total appropriation — department of environmental quality                $ 76,371,900 Fund sources:

Air quality fund                     $ 5,472,400 Emergency response fund                   132,800 Emissions inspection fund              30,365,800 Hazardous waste management fund         1,785,000 Indirect cost recovery fund            14,025,500 Permit administration fund              7,327,100 Recycling fund                          1,596,800 Safe drinking water program fund                                  2,254,700 Solid waste fee fund                    1,884,700 Underground storage tank revolving fund                          160,800 Voluntary vehicle repair and retrofit program fund                   560,000 Water quality fee fund                 10,806,300 The department of environmental quality shall report annually on the progress of WQARF activities, including emergency response, priority site remediation, cost recovery activity, revenue and expenditure activity and other WQARF-funded program activity.

The department shall submit the fiscal year 2021-2022 report to the joint legislative budget committee on or before September 1, 2021.  This report shall also include a budget for the WQARF program that is developed in consultation with the WQARF advisory board.  This budget shall specify the monies budgeted for each listed site during fiscal year 2021-2022.  In addition, the department and the advisory board shall prepare and submit to the joint legislative budget committee, on or before October 1, 2021, a report in a table format summarizing the current progress on remediation of each listed site on the WQARF registry.  The table shall include the stage of remediation for each site at the end of fiscal year 2020-2021, indicate whether the current stage of remediation is anticipated to be completed in fiscal year 2021-2022 and indicate the anticipated stage of remediation at each listed site at the end of fiscal year 2021-2022, assuming fiscal year 2021-2022 funding levels.

The department and advisory board may include other relevant information about the listed sites in the table.

All permit administration fund monies received by the department of environmental quality in excess of $7,327,100 in fiscal year 2021-2022 are appropriated to the department.

Before spending permit administration fund monies in excess of $7,327,100 in fiscal year 2021-2022, the department shall report the intended use of the monies to the joint legislative budget committee.

All indirect cost recovery fund monies received by the department of environmental quality in excess of $14,025,500 in fiscal year 2021-2022 are appropriated to the department.

Before spending indirect cost recovery fund monies in excess of $14,025,500 in fiscal year 2021-2022, the department shall report the intended use of the monies to the joint legislative budget committee.

Sec.

IncreasesGOVERNOR'S theOFFICE depositOF toEQUAL payOPPORTUNITY the                                                    Public2021-22 SafetyFTE Personnelpositions                                 Retirement4.0 SystemLump pensionsum liabilityappropriation             appropriation$ from197,700 $300,000,000Fund tosources: $500,000,000 and requires the PSPRS Board to account for the appropriation in the June 30, 2021 actuarial valuation and when calculating employee and employer contribution rates.

Personnel division fund            $ 197,700 Sec.

AppropriatesSTATE $500,000,000BOARD toOF reduceEQUALIZATION the                                                    unfunded2021-22 accruedFTE liabilitypositions                                 for7.0 theLump Departmentsum ofappropriation             Corrections$ Officer673,200 RetirementFund Plansources: Group and requires the PSPRS Board to account for the appropriation in the June 30, 2021 actuarial valuation and when calculating employee and employer contribution rates.

State general fund                 $ 673,200 Sec.

MakesBOARD changesOF toEXECUTIVE statewideCLEMENCY adjustment                                                    allocations.2021-22 FTE positions                                14.5 Lump sum appropriation              $ $1,184,500 Fund sources:

State general fund                  $  1,184,500 On or before November 1, 2021, the board of executive clemency shall report to the directors of the joint legislative budget committee and the governor's office of strategic planning and budgeting the total number and types of cases the board reviewed in fiscal year 2020-2021.

Sec.

MakesARIZONA otherEXPOSITION technicalAND changes.STATE FAIR BOARD                                                     2021-22 FTE positions                               184.0 Lump sum appropriation               $ 13,523,700 Fund sources:

AmendmentArizona explanationexposition preparedand bystate T.fair fund                          $ 13,523,700 Sec.

Grubbs37. Page 3 _________________________________________ Fifty-fifth Legislature Cobb First Regular Session H.B.

2895ARIZONA COBBDEPARTMENT FLOOROF AMENDMENTFORESTRY HOUSEAND OFFIRE REPRESENTATIVESMANAGEMENT AMENDMENTS                                          TO2021-22 H.B.FTE positions                               213.0 Operating lump sum appropriation     $ 3,205,800 Environmental county grants               250,000 Inmate firefighting crews                 727,500 Postrelease firefighting crews          1,063,400 Fire suppression                          200,000 Rural fire district reimbursement       2,500,000 State fire marshal                      1,120,600 State fire school                         275,300 Hazardous vegetation removal          3,000,000 Total appropriation — Arizona department of forestry and fire management       $12,342,600 Fund sources:

2895State (Referencegeneral tofund                    printed$12,342,600 bill)The Pageappropriation 1,for betweenthe linesrural 1fire anddistrict 2,reimbursement insert:line item is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations.

"SectionThe 1.appropriation for the hazardous vegetation removal line item is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until June 30, 2023.

Laws 2020, chapter 56, section 8 is amended to read:

38.

STATE BOARD OF FUNERAL DIRECTORS AND EMBALMERS                                           2021-22 FTE positions                                 4.0 Lump sum appropriation               $ 410,700 Fund sources:

Board of funeral directors' and ||embalmers' fund                    $ 410,700 Sec.

39.

ARIZONA GAME AND FISH DEPARTMENT                                                     2021-22 FTE positions                               273.5 Operating lump sum appropriation     $ 44,598,700 Pittman-Robertson/Dingell-Johnson act                                 3,058,000 Total appropriation — Arizona game and fish department                           $ 47,656,700 Fund sources:

Capital improvement fund             $ 1,001,200 Game and fish fund                     41,241,500 Wildlife endowment fund                    16,200 Watercraft licensing fund               5,030,400 Game, nongame, fish and endangered species fund                 367,400 Sec.

40.

DEPARTMENT OF GAMING                                                     2021-22 FTE positions                               155.8 Operating lump sum appropriation    $  9,973,100 Arizona breeders' award                   250,000 Casino operations certification         2,176,500 County fairs livestock and agriculture promotion                 5,759,500 Division of racing                      2,318,300 Racing purse enhancement                5,000,000 Racetrack purse and maintenance and operations funding                5,000,000 Problem gambling                    2,484,000 Total appropriation — department of gaming   $ 32,961,400 Fund sources:

State general fund                  $ 15,759,500 Fantasy sports contest fund               145,000 Tribal-state compact fund             2,176,500 Arizona benefits fund                  12,012,100 State lottery fund                        300,000 Racing regulation fund                  2,466,000 Racing regulation fund — unarmed combat subaccount                       102,300 The amount appropriated to the county fairs livestock and agriculture promotion line item is for deposit in the county fairs livestock and agriculture promotion fund established by section 5-113, Arizona Revised Statutes, and to be administered by the office of the governor.

The amount appropriated to the racing purse enhancement line item shall be distributed to a recognized nonprofit horsemen's organization that has represented since 1988 the horsemen participating in racing meetings to be used to promote racing and enhance the general purse structure for eligible horse races held in this state.

The appropriation made in the racetrack purse and maintenance and operations funding line item shall be distributed to commercial live racing permittees based on each permittee's three-year average of race days reflected in the length of the permit.  The monies shall be used to enhance the general purse structure and for track maintenance and operations.

Sec.

41.

OFFICE OF THE GOVERNOR                                                     2021-22 Operating lump sum appropriation    $ 7,424,800* Foster youth education success fund deposit                        1,500,000 Arizona civics corps                  1,000,000 Total appropriation — office of the governor  $ 9,924,800 Fund sources:

State general fund                   $ 9,924,800 Included in the lump sum appropriation of $7,424,800 for fiscal year 2021-2022 is $10,000 for the purchase of mementos and items for visiting officials.

Sec.

42.

GOVERNOR'S OFFICE OF STRATEGIC PLANNING AND BUDGETING                                                     2021-22 FTE positions                                22.0 Lump sum appropriation              $ 2,765,100* Fund sources:

State general fund                   $ 2,765,100 Sec.

43.

DEPARTMENT OF HEALTH SERVICES                                                     2021-22 FTE positions                             1,135.5 Operating lump sum appropriation     $ 55,409,900 Public health/family health Adult cystic fibrosis care                105,200 AIDS reporting and surveillance         1,000,000 Alzheimer's disease research            3,625,000 Biomedical research support             2,000,000 Breast and cervical cancer and bone density screening                1,369,400 County tuberculosis provider care and control                             590,700 Family health pilot program             1,500,000 Folic acid program                        400,000 High-risk perinatal services            2,343,400 Homeless pregnant women services          200,000 Medical student loan fund deposit       2,000,000 Newborn screening program              13,144,100 Nonrenal disease management               198,000 Nursing care special projects             100,000 Poison control centers funding            990,000 Radiation regulation                    2,360,200 Renal dental care and nutrition supplements                             300,000 Renal transplant drugs                    183,000 Arizona state hospital Arizona state hospital — operating                            65,862,900 Arizona state hospital — restoration to competency               900,000 Arizona state hospital — sexually violent persons           10,010,700 Total appropriation — department of                       health services                      $164,592,500 Fund sources:                                        State general fund                   $104,982,600 Arizona state hospital fund             2,883,400 Arizona state hospital land fund          650,000 Child fatality review fund                199,200 Disease control research fund           1,000,000 DHS indirect cost fund                 11,353,100 Emergency medical services operating fund                        3,912,600 Environmental laboratory licensure revolving fund                          952,000 Federal child care and development fund block grant                      1,911,500 Health services licensing fund         15,931,300 Health services lottery monies fund       200,000 Newborn screening program fund         13,576,900 Nursing care institution resident                protection revolving fund               138,200 Prescription drug rebate fund — state                         2,500,000 Tobacco tax and health care fund — medically needy account         700,000 Vital records electronic systems fund                                  3,701,700 Public health/family health The department of health services may use up to four percent of the amount appropriated for nonrenal disease management for the administrative costs to implement the program.

The department of health services shall distribute the monies appropriated for the family health pilot program line item to at least two nonprofit organizations to implement a statewide system to provide direct services, support services, social services case management and referrals to the biological or adoptive parents of children under two years of age, including unborn children.  The purpose of the statewide system is to encourage healthy childbirth, support childbirth as an alternative to abortion, promote family formation, aid successful parenting and increase families' economic self-sufficiency.  The statewide system services must be available to all residents of this state in both urban and rural areas.  Monies may not be used for abortion referral services or distributed to entities that promote, provide referrals for or perform abortions.

Each nonprofit organization that receives the monies must demonstrate both:

1.

Experience in marketing and serving the eligible patient population.

2.

That the organization can begin serving clients statewide within sixty days after receiving monies pursuant to this section.

When determining which nonprofit organizations will participate in the family health pilot program, the department shall give preference to nonprofit organizations that are working and providing services in this state.

Each nonprofit organization that participates in the family health pilot program shall submit to the department of health services on a form prescribed by the department a quarterly report of the services and referrals the nonprofit organization provides, including all of the following information:

1.

The number of clients served, either by referral or direct services.

2.

The number of direct services provided and referrals made.

3.

The number of women referred for medical services or medical care.

4.

The number of women who received prenatal care.

5.

The number of women who were referred for prenatal care.

6.

The number of women who received nutrition services.

7.

The number of women who were referred for nutrition services.

The number of individuals who received adoption services.

9.

The number of individuals who were referred for adoption services.

10.

The number of individuals who received educational and employment services.

The department of health services shall distribute monies appropriated for homeless pregnant women services to nonprofit organizations that are located in a county with a population of more than three million persons and whose primary function is to provide shelter, food, clothing, transportation for health services and support to homeless pregnant women and their children who are under one year of age.

Monies may not be granted for abortion referral services or distributed to entities that promote, refer or perform abortions.

The department of health services shall distribute monies appropriated for the biomedical research support line item to a nonprofit medical research institute headquartered in this state that specializes in biomedical research focusing on applying genomic technologies and sequencing to clinical care, that has served as a resource to this state to conduct molecular epidemiologic analyses to assist with disease outbreak investigations and that collaborates with universities, hospitals and health science research centers and other public and private bioscience and related industries in this state.  The recipient of these monies shall commission an audit of the expenditure of these monies and shall submit a copy of the audit to the department of health services on or before February 1, 2023.

The department of health services shall distribute monies appropriated for Alzheimer's disease research through a grant to a charitable organization that is qualified under section 501(c)(3) of the internal revenue code and that meets the following criteria:

1.

Is headquartered in this state.

2.

Has been operating in this state for at least the last ten years.

3.

Has participating member institutions that work together to end Alzheimer's disease within a statewide collaborative model by using their complementary strengths in brain imaging, computer science, genomics, basic and cognitive neurosciences and clinical and neuropathology research.

4.

Has participating member institutions that educate residents of this state about Alzheimer's disease, research progress and resources to help patients, families and professionals manage the disease.

The terms of the grant made to the charitable organization may not impose any requirements that were not imposed in prior grant agreements entered into between the department of health services and the charitable organization.

Arizona state hospital In addition to the appropriation for the department of health services, earnings on state lands and interest on the investment of the permanent state land funds are appropriated to the Arizona state hospital in compliance with the enabling act and the Constitution of Arizona.

Departmentwide The department of health services shall electronically forward to the president of the senate, the speaker of the house of representatives, the chairpersons of the senate and house of representatives appropriations committees and the director of the joint legislative budget committee a monthly report comparing total expenditures for the month and year-to-date as compared to prior-year totals on or before the thirtieth of the following month.

Each report shall include an estimate of potential shortfalls in programs, potential federal and other monies, such as the statewide assessment for indirect costs, that may be available to offset these shortfalls, and a plan, if necessary, for eliminating any shortfall without a supplemental appropriation.

Sec.

44.

ARIZONA HISTORICAL SOCIETY                                           2021-22 FTE positions                                50.9 Operating lump sum appropriation     $ 2,571,500 Field services and grants                  65,800 Papago park museum                    558,300 Total appropriation — Arizona historical society                              $ 3,195,600 Fund sources:

State general fund                   $ 3,195,600 Sec.

45.

PRESCOTT HISTORICAL SOCIETY                                                     2021-22 FTE positions                                13.0 Lump sum appropriation               $ 917,700 Fund sources:

State general fund                   $ 917,700 Sec.

46.

BOARD OF HOMEOPATHIC AND INTEGRATED MEDICINE EXAMINERS                                                     2021-22 FTE positions                                 1.0 Lump sum appropriation               $  46,600 Fund sources:

Board of homeopathic and integrated medicine examiners' fund                    $  46,600 Sec.

47.

ARIZONA DEPARTMENT OF HOUSING                                                     2021-22 FTE positions                                 3.0 Lump sum appropriation               $ 332,500 Fund sources:

Housing trust fund                        332,500 Sec.

48.

INDEPENDENT REDISTRICTING COMMISSION                                                     2021-22 FTE positions                                 6.0 Lump sum appropriation               $ 7,900,000* Fund sources:

State general fund                   $ 7,900,000 Sec.

49.

INDUSTRIAL COMMISSION OF ARIZONA                                                     2021-22 FTE positions                               236.6 Operating lump sum appropriation     $ 20,593,100 Municipal firefighter reimbursement administration                       95,000 Total appropriation – industrial commission  of Arizona                       $ 20,688,100 Fund sources:

State general fund                   $  95,000 Administrative fund                    20,593,100 The legislature intends that the state general fund appropriation be used only for administrative costs of title 23, chapter 11, Arizona Revised Statutes, and that this appropriation does not convey any responsibility for firefighter cancer compensation and benefits claims on to this state.

Sec.

50.

DEPARTMENT OF INSURANCE AND FINANCIAL INSTITUTIONS                                           2021-22 FTE positions                               151.4 Operating lump sum appropriation     $ 10,200,400 Arizona vehicle theft task force        4,343,500 Automobile theft authority operating budget                        672,300 Insurance fraud unit                    1,848,000 Local grants                              957,700 Reimbursable programs                50,000 Total appropriation — department of insurance and financial institutions           $ 18,071,900 Fund sources:

State general fund                   $ 7,840,700 Automobile theft authority fund         6,023,500 Financial services fund                 4,157,400 Department revolving fund                  50,300 Monies in the Arizona vehicle theft task force line item shall be used by the department of insurance and financial institutions to pay seventy-five percent of the personal services and employee-related expenditures for city, town and county sworn officers who participate in the Arizona vehicle theft task force.

Local grants shall be awarded with consideration given to areas with greater automobile theft problems and shall be used to combat economic automobile theft operations.

The department of insurance and financial institutions shall submit a report to the joint legislative budget committee before spending any monies for the reimbursable programs line item.  The department shall show sufficient monies collected to cover the expenses indicated in the report.

Of the department fees required to be deposited in the state general fund by statute, the legislature intends that the department of insurance and financial institutions shall assess and set the fees at a level to ensure that the monies deposited in the state general fund will equal or exceed the department's expenditure from the state general fund.

Sec.

51.

ARIZONA JUDICIARY                                                     2021-22 Supreme court FTE positions                               187.0 Operating lump sum appropriation     $ 16,062,400 Automation                             21,711,500 County reimbursements                     187,900 Court appointed special advocate        4,009,800 Courthouse security                       750,000 Domestic relations                        661,600 State foster care review board          3,343,800 Commission on judicial conduct            537,700 Judicial nominations and performance review                      553,000 Model court                               659,700 State aid                             5,735,800 Total appropriation — supreme court           $ 54,213,200 Fund sources:

State general fund                   $ 22,652,400 Confidential intermediary and fiduciary fund                          509,400 Court appointed special advocate fund                                  4,092,400 Criminal justice enhancement fund       4,497,100 Defensive driving school fund           4,316,900 Judicial collection enhancement fund                                 15,198,700 State aid to the courts fund            2,946,300 On or before September 1, 2021, the supreme court shall report to the joint legislative budget committee and the governor's office of strategic planning and budgeting on current and future automation projects coordinated by the administrative office of the courts.

The report shall include a list of court automation projects that receive or are anticipated to receive state monies in the current or next two fiscal years as well as a description of each project, the number of FTE positions, the entities involved and the goals and anticipated results for each automation project.

The report shall be submitted in one summary document.

The report shall indicate each project's total multiyear cost by fund source and budget line item, including any prior-year, current-year and future-year expenditures.

Automation expenses of the judiciary shall be funded only from the automation line item.

Monies in the operating lump sum appropriation or other line items intended for automation purposes shall be transferred to the automation line item before expenditure.

Included in the operating lump sum appropriation for the supreme court is $1,000 for the purchase of mementos and items for visiting officials.

Of the $187,900 appropriated for county reimbursements, state grand jury is limited to $97,900 and capital postconviction relief is limited to $90,000.

Of the amount appropriated in the automation line item, $133,900 is to expand and maintain the court's electronic case management system for water adjudication.

Court of appeals FTE positions                               136.8 Division one                         $ 11,895,500 Division two                          5,284,100 Total appropriation — court of appeals        $ 17,179,600 Fund sources:

State general fund                   $ 17,179,600 Of the 136.8 FTE positions for fiscal year 2021-2022, 98.3 FTE positions are for division one and 38.5 FTE positions are for division two.

Superior court FTE positions                               238.5 Operating lump sum appropriation     $ 4,819,700 Judges' compensation                   23,970,700 Centralized service payments            3,676,200 Adult standard probation               21,824,200 Adult intensive probation              12,892,100 Community punishment                    2,310,300 Court-ordered removals                    315,000 Interstate compact                        503,300 Drug court                              1,080,000 General adjudication personnel and support fund deposit              2,000,000 Juvenile standard probation             3,705,600 Juvenile intensive probation            5,969,300 Juvenile treatment services            20,697,900 Juvenile family counseling                500,000 Juvenile crime reduction                3,327,000 Juvenile diversion consequences         8,918,600 Probation incentive payments            1,000,000 Probation officer vehicles                187,500 Special water master                  502,100 Total appropriation — superior court          $118,199,500 Fund sources:

State general fund                   $106,205,100 Criminal justice enhancement fund       5,475,800 Drug treatment and education fund         503,400 Judicial collection enhancement fund                                  6,015,200 Operating budget All expenditures made by the administrative office of the courts to administer superior court line items shall be funded only from the superior court operating budget.

Monies in superior court line items intended for this purpose shall be transferred to the superior court operating budget before expenditure.

Judges Of the 238.5 FTE positions, 180 FTE positions represent superior court judges.

This FTE position clarification does not limit the counties' ability to add judges pursuant to section 12-121, Arizona Revised Statutes.

All monies in the judges' compensation line item shall be used to pay for fifty percent of superior court judges' salaries, elected officials' retirement plan costs and related state benefit costs for judges pursuant to section 12-128, Arizona Revised Statutes.

Monies in the operating lump sum appropriation or other line items intended for this purpose shall be transferred to the judges' compensation line item before expenditure.

Probation Monies appropriated to juvenile treatment services and juvenile diversion consequences shall be deposited in the juvenile probation services fund established by section 8-322, Arizona Revised Statutes.

Receipt of state probation monies by the counties is contingent on the county maintenance of fiscal year 2019-2020 expenditure levels for each probation program.

State probation monies are not intended to supplant county dollars for probation programs.

On or before November 1, 2021, the administrative office of the courts shall report to the joint legislative budget committee and the governor's office of strategic planning and budgeting the fiscal year 2020-2021 actual, fiscal year 2021-2022 estimated and fiscal year 2022-2023 requested amounts for each of the following:

1.

On a county-by-county basis, the number of authorized and filled case carrying probation positions and non-case carrying probation positions, distinguishing between adult standard, adult intensive, juvenile standard and juvenile intensive.  The report shall indicate the level of state probation funding, other state funding, county funding and probation surcharge funding for those positions.

2.

Total receipts and expenditures by county and fund source for the adult standard, adult intensive, juvenile standard and juvenile intensive probation line items, including the amount of personal services spent from each revenue source of each account.

All centralized service payments made by the administrative office of the courts on behalf of counties shall be funded only from the centralized service payments line item.

Centralized service payments include only training, motor vehicle payments, CORP review board funding, LEARN funding, research, operational reviews and GPS vendor payments.  This footnote does not apply to treatment or counseling services payments made from the juvenile treatment services and juvenile diversion consequences line items.  Monies in the operating lump sum appropriation or other line items intended for centralized service payments shall be transferred to the centralized service payments line item before expenditure.

All monies in the adult standard probation, adult intensive probation, community punishment, interstate compact, juvenile standard probation, juvenile intensive probation, juvenile treatment services, juvenile diversion consequences, juvenile crime reduction and probation incentive payments line items shall be used only as pass-through monies to county probation departments.

Monies in the operating lump sum appropriation or other line items intended as pass-through for the purpose of administering a county probation program shall be transferred to the appropriate probation line item before expenditure.

On or before November 1, 2021, the administrative office of the courts shall submit a report for review by the joint legislative budget committee on the county-approved salary adjustments provided to probation officers since the last report on November 1, 2020.

The administrative office shall also submit a copy of the report to the governor's office of strategic planning and budgeting.

The report shall include, for each county, the:

1.

Approved percentage salary increase by year.

2.

Net increase in the amount allocated to each probation department by the administrative office of the courts for each applicable year.

3.

Average number of probation officers by applicable year.

4.

Average salary of probation officers for each applicable year.

The amounts appropriated in the adult standard probation, adult intensive probation, interstate compact, drug court, juvenile standard probation, juvenile intensive probation, juvenile treatment services and juvenile diversion consequences line items in fiscal year 2021-2022 include an increase of $4,251,500 to cover the state's share of probation officer salary increases for fiscal years 2018-2019, 2019-2020, 2020-2021 and 2021-2022.

If the counties approve probation officer step or inflation salary increases in fiscal year 2021-2022 that increase the state's share above the amount appropriated, the legislature intends that the counties absorb any additional cost to this state in fiscal year 2021-2022 and subsequent years.

Water adjudication The amount appropriated in the special water master line item includes an increase of $147,600 for two paralegal FTE positions and $109,700 is for one law clerk FTE position.

Sec.

52.

DEPARTMENT OF JUVENILE CORRECTIONS                                                     2021-22 FTE positions                               738.5 Lump sum appropriation               $ 47,290,100 Fund sources:

State general fund                   $ 32,290,000 State charitable, penal and reformatory institutions land fund                             4,017,000 Criminal justice enhancement fund         546,200 State education fund for committed youth                                 1,986,000 Department of juvenile corrections local cost sharing fund               8,450,900 Twenty-five percent of land earnings and interest from the state charitable, penal and reformatory institutions land fund shall be distributed to the department of juvenile corrections, in compliance with section 25 of the enabling act and the Constitution of Arizona, to be used to support state juvenile institutions and reformatories.

Sec.

53.

STATE LAND DEPARTMENT                                                     2021-22 FTE positions                               129.7 Operating lump sum appropriation     $ 16,678,200 Natural resource conservation districts                               650,000 CAP user fees                           1,700,000 Due diligence fund deposit              1,500,000 Due diligence program                   5,000,000 Fire suppression                          800,000 Streambed navigability litigation     220,000 Total appropriation — state land department   $ 26,548,200 Fund sources:

State general fund                   $ 13,967,500 Environmental special plate fund          260,600 Due diligence fund                      5,000,000 Trust land management fund              7,320,100 The appropriation includes $1,700,000 for CAP user fees in fiscal year 2021-2022.

For fiscal year 2021-2022, from municipalities that assume their allocation of central Arizona project water for every dollar received as reimbursement to the state for past central Arizona water conservation district payments, $1 reverts to the state general fund in the year that the reimbursement is collected.

Of the amount appropriated for natural resource conservation districts in fiscal year 2021-2022, $30,000 shall be used to provide grants to natural resource conservation districts environmental education centers.

Sec.

54.

LEGISLATURE                                           2021-22 Senate Lump sum appropriation             $ 18,253,900* Fund sources:

State general fund                  $ 18,253,900 Included in the lump sum appropriation of $18,253,900 for fiscal year 2021-2022 is $1,000 for the purchase of mementos and items for visiting officials.

House of representatives Lump sum appropriation             $ 21,830,000* Fund sources:

State general fund                  $ 21,830,000 Included in the lump sum appropriation of $21,830,000 for fiscal year 2021-2022 is $1,000 for the purchase of mementos and items for visiting officials.

Legislative council FTE positions                                66.0 Operating lump sum appropriation     $ 9,121,800 Ombudsman-citizens aide office      1,141,300 Total appropriation — legislative                         council                             $ 10,263,100* Fund sources:

State general fund                   $ 10,263,100 Dues for the council of state governments may be expended only on an affirmative vote of the legislative council.

The legislature intends that the ombudsman-citizens aide prioritize investigating and processing complaints relating to the department of child safety.

Joint legislative budget committee FTE positions                                29.0 Lump sum appropriation              $ 2,934,700* Fund sources:

State general fund                   $ 2,934,700 Auditor general FTE positions                               200.8 Lump sum appropriation              $ 21,406,500* Fund sources:

State general fund                   $ 21,406,500 The auditor general shall compile information on how all Arizona school districts and charter schools spent or plan to spend stimulus monies specified in the federal acts related to the COVID-19 pandemic and how the department of education spent or plans to spend its stimulus discretionary monies specified in the federal acts related to the COVID-19 pandemic in fiscal years 2019-2020, 2020-2021 and 2021-2022.  On or before January 1, 2022, the auditor general shall issue a report that includes the fiscal years 2019-2020 and 2020-2021 information and on or before January 1, 2023, the auditor general shall issue a report that includes the fiscal year 2021-2022 information.

For both reports, the auditor general may develop recommendations, as necessary.

The school districts and charter schools shall cooperate with and provide information and records to the auditor general in a format prescribed by the auditor general to facilitate the reporting required in this section.

The department of education and other state or local agencies that passed stimulus monies through to school districts and charter schools shall cooperate with and provide necessary information to the auditor general.

The auditor general shall conduct a special audit of financial and related information of any private, nongovernmental grant monies used for this state's 2020 elections and Maricopa county's procurement of voting systems.

On or before March 31, 2022, the auditor general shall submit a report to the governor, the president of the senate and the speaker of the house of representatives on all of the following:

1.

Private, nongovernmental grant monies received and expended by the secretary of state's office for the 2020 elections and any balance remaining unexpended on June 30, 2021, for the following:

(a) Educating voters how to sign up for the permanent early voting list or how to request an early ballot.  The report shall include the type of information provided and where the information was provided.

(b) Recruiting poll workers.  The report shall include where the recruitment was targeted and advertised and the requirements for poll worker selection.

(c) Combating misinformation and disinformation about the 2020 elections.

The report shall include the methods used, the type of information provided and where the information was provided.

(d) Personnel and employee-related expenses.

The report shall include an analysis of why the monies were used for these specific purposes.

2.

Private, nongovernmental grant monies received and expended by Maricopa county on programs and processes for the 2020 elections, including the purpose of the expenditures, the amount spent for personnel and employee-related expenses and any balance remaining unexpended on June 30, 2021.

3.

Private, nongovernmental grant monies received and expended by Pima county on programs and processes for the 2020 elections, including the purpose of the expenditures, the amount spent for personnel and employee-related expenses and any balance remaining unexpended on June 30, 2021.

4.

Maricopa county's process to acquire Dominion Voting Systems, including information regarding:

(a) Compliance with the county's procurement code.

(b) Agreement terms, including acquisition costs, time frames and machine maintenance and security.

(c) The Maricopa county board of supervisors meetings to discuss the acquisition, including any public comment.

(d) The security and technical analysis that occurred before the acquisition.

Sec.

55.

DEPARTMENT OF LIQUOR LICENSES AND CONTROL                                                     2021-22 FTE positions                                51.2 Lump sum appropriation               $ 4,523,200 Fund sources:

Liquor licenses fund                 $ 4,523,200 Sec.

56.

ARIZONA STATE LOTTERY COMMISSION                                                     2021-22 FTE positions                                98.8 Operating lump sum appropriation     $ 9,498,700 Advertising                          15,500,000 Total appropriation — Arizona state lottery commission                   $ 24,998,700 Fund sources:

State lottery fund                   $ 24,998,700 An amount equal to twenty percent of tab ticket sales is appropriated to pay sales commissions to charitable organizations.  This amount is currently estimated to be $1,311,400 in fiscal year 2021-2022.