HB 2810 — general appropriations act; 2023-2024

6.• Directs 100% of land earnings trust and interest from the School of Mines Land Fund to be distributed to the University of Arizona School of Mining and Mineral Resources.

DEPARTMENT• OFAdds ADMINISTRATIONa 2023-24$1,500,000 FTEGF positions 539.1 Operating lump sum appropriation $to 91,914,700the Utilities 7,649,900 Arizona financialDepartment informationof systemVeterans' 14,442,100Services Riskfor managementa administrativeTribal expensesConnectivity 10,870,700Project Riskline managementitem lossesfor andtelecommunications premiums 52,436,300 Workers' compensation losses and premiumsinternet 28,395,000capabilities Cyberto risktribal insurancechapter 23,037,200houses. Information technology project management and oversight 1,667,300 State surplus property sales agency proceeds 1,810,000 Employee compensation study 4,000,000 Health care interoperability grants 3,000,000 Fire incident management fund deposit 12,200,000 K-12 transportation grants 15,000,000 Miami unified school district gym floors 350,000 Southwest defense contracts 25,000 Government transformation office 2,063,000 Total appropriation — department of administration $268,861,200 - 2 - HB 2810 Fund sources:

State• generalMoves fundvarious $water-related 43,900,900projects Airfrom qualitythe fundTreasurer 928,000local Arizonadistribution financial information system collections fund 14,442,100 Automation operations fund 29,901,000 Capital outlay stabilization fund 19,200,200 Corrections fund 634,600 Cyber risk insurance fund 23,037,200 Federal surplus materials revolving fund 468,500 Information technology fund 2,292,000 Personnel division fund 13,779,500 Risk management revolving fund 99,955,800 Special employee health insurance trust fund 5,719,900 Special services revolving fund 1,257,300 State surplus materials revolving fund 3,064,600 State web portal fund 8,465,600 Telecommunications fund 1,814,000 The amount appropriated for southwest defense contracts shall be distributed to a nonprofitdistribution organizationfrom thatthe advocatesWater forInfrastructure preservingFinance andAuthority enhancing(WIFA) criticalfor defenselocal missionsdistributions. and assets in the southwestern United States.

The• appropriationOutlines fromuses thefor automationwater operationsprojects fundassistance establishedgrants. by section 41-711, Arizona Revised Statutes, is an estimate representing all monies, including balance forward, revenues and transfers during fiscal year 2023-2024.

These• moniesAllows areFY appropriated2023 toBorder theSecurity departmentFund ofdeposits administrationto be used for theother purposes establishedconsistent inwith sectionthe 41-711,Border ArizonaSecurity RevisedFund. Statutes.

The• appropriationIncreases isthe adjustedreduction asof necessarythe toFY reflect2024 moniesWIFA creditedLong-Term toWater theAugmentation automationFund operationsfrom fund$138,800,000 forto automation$143,800,000. operation center projects.

Before• spendingAppropriates anya automationnon-lapsing operations$1,000,000 fundfrom monies in excess of $29,901,000 in fiscal year 2023-2024, the departmentGF shallto report the intendedArizona usePower ofAuthority thefor moniesresource toplanning theand jointa legislativeneeds budgetassessment. committee.

On• orTransfers before September 1, 2024, the department shall submit a reportfirearm totraining thesimulator jointappropriation legislativefrom budgetFlagstaff committeePolice onDepartment the results of pilot projects implemented in fiscal year 2023-2024 for the state employee public transportation service reimbursements pursuant to sectionPhoenix 41-710.01,Police ArizonaDepartment. Revised Statutes, in a vehicle emissions control area as defined in section 49-541, Arizona Revised Statutes, of a county with a population of more than four hundred thousand persons.

-• 3Makes -technical HBrevenue 2810estimate Alladjustments. state surplus materials revolving fund monies received by the department of administration in excess of $3,064,600 in fiscal year 2023-2024 are appropriated to the department.

BeforeAmendment spendingexplanation stateprepared surplusby materialsAustin revolvingFairbanks fundPage monies3 in_________________________________________ excessFifty-sixth ofLegislature $3,064,600Livingston inFirst fiscalRegular yearSession 2023-2024,H.B. the department shall report the intended use of the monies to the joint legislative budget committee.

Of2810 theLIVINGSTON amountFLOOR appropriatedAMENDMENT forHOUSE theOF ArizonaREPRESENTATIVES financialAMENDMENTS informationTO systemH.B. line item in fiscal year 2023-2024, $4,000,000 is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until June 30, 2025.

On2810 or(Reference before November 1, 2024, the department shall submit a report to theprinted directorbill) ofPage the2, jointbetween legislativelines budget35 committeeand on36, expendituresinsert: made from the cyber risk insurance fund established by section 41-622, Arizona Revised Statutes, from the prior year.

On"Kirkland orschool beforedistrict Octoberdistribution 1,300,000 2024,Early theliteracy department250,000" shallLine submit42, astrike report"268,861,200" toinsert the"269,411,200" presidentPage of3, theline senate,2, thestrike speaker"43,900,900" ofinsert the"44,450,900" housePage of4, representatives,between thelines chairpersons24 of the senate and house25, ofinsert: representatives appropriations committees and the director of the joint legislative budget committee on the outcome of the employee compensation study.

The"The amount appropriated for the K-12early transportationliteracy grants line item inshall fiscalbe yeardistributed 2022-2023to pursuanta toliteracy Lawsprogram 2022,that chapterplaces 313,young sectionadult 5role ismodels exemptin fromhigh-need thepreschool provisionsclassrooms ofand sectionchildcare 35-190,centers Arizonawhere Revisedthey Statutes,deliver relatingtargeted early literacy interventions to thechildren lapsingwho ofmay appropriations,otherwise untilnever Junehave 30,had 2024.young adult role models.

Sec.The amount appropriated for the enduring freedom memorial repair line item in fiscal year 2021-2022 pursuant to Laws 2021, chapter 408, section 5 is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to the lapsing of appropriations, until June 30, 2024." Page 6, line 15, strike "7,977,675,900" insert "7,978,162,400" Between lines 28 and 29, insert:

7."Children's behavioral health services fund deposit 250,000" Line 40, strike "20,071,337,200" insert "20,072,073,700" Line 42, strike "2,515,415,000" insert "2,515,575,000" Page 7, line 4, strike "165,160,800" insert "165,410,800" Line 13, strike "17,148,071,600" insert "17,148,398,100" House Amendments to H.B.

DEPARTMENT2810 OFPage ADMINISTRATION,9, DIVISIONbetween OFlines SCHOOL12 FACILITIESand 2023-2413, FTEinsert: positions 17.0 Operating lump sum appropriation $ 1,647,100 School facilities inspections 1,000,000* New school facilities debt service 9,938,100 Building renewal grants deposit 199,967,900 Santa Cruz Valley new school 2,000,000 New school facilities 116,089,400 Total appropriation — department of administration, division of school facilities $330,642,500 Fund sources:

State"Of the amount appropriated in the traditional medicaid services line item, $160,000 from the state general fund $330,642,500and Pursuant$326,500 tofrom expenditure authority is for pilot coverage of rapid whole genome sequencing and is exempt from the provisions of section 35-142.01,35-190, Arizona Revised Statutes, anyrelating reimbursementto receivedlapsing byof orappropriations, allocateduntil toJune the30, division2026." Page 11, line 4, after "communities" strike remainder of schoolline facilitiesLine under5, strike "of less than three hundred fifty thousand persons" Line 7, strike "and rural hospitals" Line 9, after the federalperiod qualifiedinsert school"The constructionadministration bondmay programuse inup fiscalto yearfive 2023-2024percent shallof bethe depositedmonies appropriated in orthis revertline item for the administrative costs to implement the stateprogram." generalLine fund.40, strike "658.7" insert "671.7" Page 13, lines 40 and 42, strike "2,715,500" insert "2,915,500" Page 18, line 24, strike "25,000,000 insert "23,600,000" Lines 30 and 32, strike "64,050,000" insert "62,650,000" Page 21, between lines 6 and 7, insert:

-"Pima 42,000,000" -Line HB11, 2810strike At"13,648,000" leastinsert thirty"15,648,000" daysStrike before any monies are transferred out of the new school facilities debt service line item,41, theinsert: division of school facilities shall report the proposed transfer to the director of the joint legislative budget committee.

Pursuant"CTE toworkforce section15,000,000" 41-5741,Page Arizona22, Revisedlines Statutes,9 theand amount11, appropriatedstrike for"107,401,300" newinsert school"116,901,300" facilitiesPage shall23, beline used30, onlystrike for" facilities750,000" andinsert land" costs650,000" forLine school32, districtsstrike that"1,550,539,500" receivedinsert final"1,550,439,500" approvalLine 34, strike "1,492,641,000" insert "1,492,541,000" Page 27, line 37, after the period insert "The amount appropriated in the inmate dog training line item is exempt from the divisionprovisions of schoolsection facilities35-190, onArizona orRevised beforeStatutes, Decemberrelating 15,to 2022.lapsing of appropriations, until June 30, 2025." -2- House Amendments to H.B.

The2810 divisionPage of30, schoolbetween facilitieslines may17 also use the unencumbered balance of up to $22,811,800 in the new school facilities fund established by section 41-5741, Arizona Revised Statutes, for facilities and land18, costsinsert: for school districts that received final approval from the division of school facilities on or before December 15, 2022, pursuant to section 41-5741, Arizona Revised Statutes.

After"Area approvingagencies aon distributionaging ofhousing fundingassistance for5,000,000*" aPage land31, purchase,line a24, landstrike lease"4,914,403,600" orinsert the"4,919,403,600" constructionLine of26, astrike new"1,206,858,700" school,insert the"1,211,858,700" divisionPage of32, schoolbetween facilitieslines shall9 report to the joint legislative budget committee and the10, governor'sinsert: office of strategic planning and budgeting the final amount of the distribution.

Sec."The amount appropriated for the area agencies on aging housing assistance line item shall be distributed to area agencies on aging established pursuant to the older Americans act of 1965 (P.L.

8.89-73;

OFFICE79 OFStat. ADMINISTRATIVE HEARINGS 2023-24 FTE positions 12.0 Operating lump sum appropriation $ 998,900 Increased workload 180,000 Total appropriation — office of administrative hearings $ 1,178,900 Fund sources:

State218; general fund $ 1,178,900 The amount appropriated in the increased workload line item reverts to the state general fund if a bill addressing provider claims against insurers does not become law in the first regular session of the fifty-sixth legislature.

Sec.42 United States Code sections 3001 through 3058ff) for housing assistance for persons who are at least sixty years of age." Page 36, between lines 13 and 14, insert:

9."Center for high school success 1,000,000" Page 37, line 9, strike "8,324,585,500" insert "8,325,585,500" Line 11, strike "6,732,358,700" insert "6,733,358,700" Page 39, between lines 13 and 14, insert:

ARIZONA"The DEPARTMENTdepartment OFof AGRICULTUREeducation 2023-24may FTEuse positionsthe 209.9appropriated Operatingamount lumpfor sumaccountability appropriationand $achievement 17,504,200testing Agriculturalin employmentfiscal relationsyear board2023-2024 23,300for Animalcosts damageof controlthe 65,000English Redlanguage importedproficiency fireassessments antrequired controlby 23,200section Agricultural15-756.05, consulting and training 136,300 Total appropriation — Arizona departmentRevised ofStatutes." agriculturePage $43, 17,752,000between -lines 533 -and HB34, 2810insert: Fund sources:

State"Of the amount appropriated to the department of emergency and military affairs for onetime maintenance backfill in fiscal year 2022-2023 pursuant to Laws 2022, chapter 313, section 32, $13,300,000 from the state general fund $is 16,154,200exempt Airfrom qualitythe fundprovisions 1,597,800of Sec.section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations." Line 37, strike "70,050,000" insert "73,050,000" Page 44, line 6, strike "114,268,000" insert "117,268,000" Line 15, strike "1,522,400" insert "4,522,400" Page 46, between lines 17 and 18, insert:

10."Fire district grants 5,000,000*" Lines 22 and 24, strike "45,375,100" insert "50,375,100" -3- House Amendments to H.B.

ARIZONA2810 HEALTHPage CARE46, COSTbetween CONTAINMENTlines SYSTEM27 2023-24 FTE positions 2,358.3 Operating lump sum appropriation $ 137,506,600 Administration AHCCCS data storage 19,325,800 DES eligibility 97,074,500 Proposition 204 — AHCCCS administration 15,367,300 Proposition 204 — DES eligibility 44,358,700 Medicaid services Traditional medicaid services 7,977,675,900 Proposition 204 services 7,038,319,000 Adult expansion services 926,824,300 Comprehensive medical and dental28, programinsert: 203,903,500 KidsCare services 186,394,000 ALTCS services 2,680,175,800 Behavioral health services in schools 9,120,600 Nonmedicaid behavioral health services Crisis services 16,391,300 Nonmedicaid seriously mentally ill services 77,646,900 Supported housing 65,324,800 Hospital payments Disproportionate share payments 5,087,100 Disproportionate share payments — voluntary match 69,735,200 Rural hospitals 41,074,400 Graduate medical education 426,531,500 Targeted investments program 26,000,000 On-call obstetrics and gynecological services 7,500,000* Total appropriation and expenditure authority — Arizona health care cost containment system $20,071,337,200 Fund sources:

State"Monies generalin fundthe $fire 2,515,415,000district Budgetgrants neutralityline complianceitem fundshall 4,669,300be -used 6by -the HBArizona 2810department Children'sof healthforestry insurance program fund 150,835,600 Prescription drug rebate fund — state 165,160,800 Seriously mentally ill housing trust fund 217,300 Substance abuse services fund 2,250,200 Tobacco products tax fund — emergency health services account 17,458,500 Tobacco tax and healthfire caremanagement fundto —establish medicallya needyprogram accountto 67,258,900provide Expendituregrants authorityto 17,148,071,600fire Operatingdistricts budgetin Thethis amountstate. 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.

The statedepartment general fund share may beuse usedup forto eligibilitytwo determinationpercent forof otherthe programsmonies administeredin by the divisionfire ofdistrict benefitsgrants andline medicalitem eligibilityto basedadminister on the resultsprogram. of the Arizona random moment sampling survey.

TheGrant amountsapplications includedshall inbe theprioritized propositionbased 204on —the AHCCCSneed administration,of propositionthe 204fire —district DES eligibility and propositionaverage 204response servicestimes line items include all available sources of fundingthe consistentfire withdistrict. section 36-2901.01, subsection B, Arizona Revised Statutes.

OfA thefire amountdistrict appropriatedmay inuse thefire operatingdistrict lumpgrant sum,monies $700,000to: from the state general fund and $6,300,000 from expenditure authority is for replacement of the prepaid medicaid management information system and is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until June 30, 2025.

Before spending the monies for the replacement of the prepaid medicaid management information system, the Arizona strategic enterprise technology office shall submit, on behalf of the Arizona health care cost containment system, an expenditure plan for review by the joint legislative budget committee.

The report shall include the project cost, deliverables, the timeline for completion and the method of procurement that are consistent with the department's prior reports for its appropriations from the automation projects fund.

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.

- 7 - HB 2810 The Arizona health care cost containment system administration shall report to the joint legislative budget committee on or before March 1, 2024 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 $1,000,000 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 2023-2024 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 2023-2024 to the department of revenue for enforcement costs associated with the March 13, 2013 master settlement agreement with tobacco companies.

The amount appropriated for the ALTCS services line item includes $347,740,500 from expenditure authority to implement the American rescue plan act of 2021 (P.L.

117-2) home and community-based services spending plan in fiscal year 2023-2024.

The administration may not use these monies for marketing purposes, and any direct payments or grants provided with the monies shall include a notification to the recipient that the monies are onetime funding.

Beginning on or before July 31, 2023, the administration shall provide quarterly reports to the joint legislative budget committee at the same time that the information is provided to the centers for medicare and medicaid services, reflecting any changes to the administration's spending plan.

Of the amount appropriated for the ALTCS services line item in fiscal year 2023-2024, $347,740,500 is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations.

- 8 - HB 2810 On or before June 30, 2024, 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.

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 2023-2024 nonfederal costs of providing long-term care system services is $366,205,400.

This amount is included in the expenditure authority fund source.

Any supplemental payments received in excess of $101,756,900 for nursing facilities that serve Arizona long-term care system medicaid patients in fiscal year 2023-2024, including any federal matching monies, by the Arizona health care cost containment system administration are appropriated to the administration in fiscal year 2023-2024.

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 2023-2024 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 2023-2024 by the Arizona health care cost containment system administration in excess of $69,735,200 are appropriated to the administration in fiscal year 2023-2024.

Before spending these increased monies, the administration - 9 - HB 2810 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 2023-2024 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 2023-2024, including any federal matching monies, by the Arizona health care cost containment system administration in excess of $426,531,500 are appropriated to the administration in fiscal year 2023-2024.

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 $5,000,000 from the state general fund and $15,721,100 from expenditure authority for the direct and indirect costs of graduate medical education programs located in counties 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 $4,000,000 from the state general fund and $12,576,900 from expenditure authority for the direct and indirect costs of graduate medical education programs located in counties 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.

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, 2024.

- 10 - HB 2810 The Arizona health care cost containment system administration shall allocate the amount appropriated for the on-call obstetrics and gynecological services line item to maintain service availability in low-volume obstetric delivery areas and rural communities with populations of less than three hundred fifty thousand persons.

The administration shall distribute up to $2,500,000 each year to qualifying community health centers and rural hospitals for the unreimbursed cost necessary to maintain the availability of on-call obstetrics and gynecological services in low-volume obstetric delivery areas and rural communities.

On or before July 1 in 2024, 2025 and 2026, the Arizona health care cost containment system administration shall submit a report to the joint legislative budget commitregarding the use of the monies from the on-call obstetrics and gynecological services line item, including the number of deliveries and emergency procedures provided by the on-call health care providers for which the monies were spent.

The appropriated amount for the on-call obstetrics and gynecological services line item is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until June 30, 2026.

Other On or before July 1, 2024, 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, 2023.

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.|11.

ARIZONA COMMISSION ON THE ARTS 2023-24 Arizona arts trust fund deposit $ 5,000,000 Fund sources:

State general fund $ 5,000,000 Sec.|12.

BOARD OF ATHLETIC TRAINING 2023-24 FTE positions 1.5 Lump sum appropriation $ 150,000 Fund sources:

Athletic training fund $ 150,000 Sec.|13.

ATTORNEY GENERAL — DEPARTMENT OF LAW 2023-24 FTE positions 658.7 Operating lump sum appropriation $ 68,308,600 Capital postconviction prosecution 881,400 Child and family advocacy centers 600,000 - 11 - HB 2810 Criminal division major fraud unit 1,194,000 Internet crimes against children enforcement 1,271,500 Government accountability and special litigation 1,334,200 Organized retail theft task force 1,570,700 Opioid abatement 12,000,000 Risk management interagency service agreement 10,703,900 State grand jury 194,100 Southern Arizona law enforcement 1,678,900 Tobacco enforcement 877,600 Victims' rights 4,023,400 Total appropriation — attorney general — department of law $104,638,300 Fund sources:

State general fund $ 27,437,900 Antitrust enforcement revolving fund 161,400 Attorney general legal services cost allocation fund 2,326,200 Collection enforcement revolving fund 7,599,300 Consumer protection–consumer fraud revolving fund 19,003,900 Consumer restitution and remediation revolving fund – consumer remediation subaccount 12,000,000 Interagency service agreements fund 18,199,300 Internet crimes against children enforcement fund 900,000 Risk management revolving fund 13,197,600 Victims' rights fund 3,812,700 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 2023-2024.

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.

- 12 - HB 2810 The appropriated amount for the operating lump sum includes a onetime increase of $3,000,000 from the consumer protection-consumer fraud revolving fund established by section 44-1531.01, Arizona Revised Statutes, in fiscal year 2023-2024 for operating expenses.

This increase is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations.

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.

Of the amount appropriated for the child and family advocacy centers line item in fiscal year 2023-2024, $500,000 shall be used to support an entity that provides child victim advocacy and mental health services through a child advocacy center that is based in a county with a population of more than three million persons.

The $900,000 appropriation from the internet crimes against children enforcement fund established by section 41-199, Arizona Revised Statutes, and the $371,500 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, 2025.

The attorney general shall submit an expenditure plan for review by the joint legislative budget committee before spending any monies appropriated for the opioid abatement line item.

Monies in the opioid abatement line item shall be used to treat opioid use disorders, to support persons who are in opioid treatment and recovery or for any other specified purposes that are included in a court order or a settlement or compromise that is entered into by this state and other parties to the opioid litigation.

The $1,570,700 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.

Sec.

14.

BARBERING AND COSMETOLOGY BOARD 2023-24 FTE positions 29.5 Lump sum appropriation $ 2,715,500 Fund sources:

Barbering and cosmetology fund $ 2,715,500 - 13 - HB 2810 Sec.

15.

BOARD OF BEHAVIORAL HEALTH EXAMINERS 2023-24 FTE positions 20.0 Lump sum appropriation $ 2,123,000 Fund sources:

Board of behavioral health || examiners fund $ 2,123,000 Sec.

16.

STATE BOARD FOR CHARTER SCHOOLS 2023-24 FTE positions 25.0 Lump sum appropriation $ 2,939,200 Fund sources:

State general fund $ 2,939,200 Sec.

17.

DEPARTMENT OF CHILD SAFETY 2023-24 FTE positions 3,283.1 Operating lump sum appropriation $147,938,100 Additional operating resources Attorney general legal services 25,522,800 Caseworkers 124,293,500 Office of child welfare investigations 11,245,700 Training resources 9,150,000 Out-of-home placements Congregate group care 114,918,700 Extended foster care 26,553,900 Extended foster care service model fund deposit 19,243,300* Foster home placement 51,929,500 Foster home recruitment, study and supervision 32,753,600 Kinship care 24,811,200 Permanent placements Adoption services 294,923,500 Permanent guardianship subsidy 12,516,900 Positive parenting program for post permanency placements pilot 4,000,000* Support services DCS child care subsidy 61,675,400 In-home mitigation 28,988,100 Out-of-home support services 122,710,800 Preventive services 29,648,300 - 14 - HB 2810 Comprehensive health plan Comprehensive health plan services 161,546,700 Comprehensive health plan administration 27,461,200 Comprehensive health plan premium tax 3,857,300 Total appropriation and expenditure authority — department of child safety $1,335,688,500 Fund sources:

State general fund $ 496,179,600 Federal child care and development fund block grant 40,516,000 Federal temporary assistance for needy families block grant 161,082,200 Child abuse prevention fund 1,459,300 Children and family services training program fund 208,000 Child safety expenditure authority 442,357,400 Child welfare licensing fee fund 1,020,800 Comprehensive health plan expenditure authority fund — expenditure authority 192,865,200 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.

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 - 15 - HB 2810 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 $300 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.

On or before March 31, 2024, the department of child safety shall report to the joint legislative budget committee the number of children who are part of the kinship stipend program and reside with a nonrelative caretaker of fictive kinship.

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, the children and family services training program fund and the comprehensive health plan expenditure authority fund.

On or before December 1, 2023, 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:

ReducingPurchase thecapital numberequipment ofnecessary childrento placedrespond forto morepublic thansafety twoemergencies, weeksincluding infire congregateengines, careambulances, settings,radio excludingtelecommunications, qualifieduniforms residential treatment programs, facilities for pregnant and parentingequipment. youth, supervised independent living and specialized programs for victims of sex trafficking.

AssistingConstruct congregateor carerenovate providersfire instations. attaining status as qualified residential treatment programs.

IdentifyingPurchase alternativeand placements,provide includingemergency therapeuticalert fosterservices homes,that forare childrenavailable whothrough woulda otherwisemobile beapplication placedor inother congregatemeans." care.Page 47, line 18, strike "operator license" insert "application" Line 19, strike "500,000" insert "600,000" Between lines 21 and 22, insert:

-"Racetrack 16capital -projects HBand 2810maintenance 4.and operation funding 1,000,000" Line 24, strike "34,109,600" insert "35,209,600" Line 26, strike "12,059,600" insert "13,159,600" Page 48, between lines 24 and 25, insert:

Expanding"The evidence-based,appropriation in-homemade parentin skill-basedthe programsracetrack capital projects and mentalmaintenance healthand operation funding line item shall be distributed to commercial live racing permittees for capital projects and substancetrack abusemaintenance preventionand operations, including costs associated with the compliance costs associated with the horseracing integrity and treatmentsafety services.act of 2020 (P.L.

Benchmarks116-260; For the purposes of this section, "backlog case":

134 Stat.

3252;

15 United States Code sections 3051 through 3060).

From the amount appropriated in the racetrack capital projects and maintenance and operations funding line item, the department of gaming -4- House Amendments to H.B.

2810 shall allocate $1,000,000 to a commercial live racing permittee located in Maricopa county." Page 49, line 18, strike "500,000*" insert "750,000*" Between lines 28 and 29, insert:

"Nurse-family partnership programs 2,500,000" Page 50, line 6, strike "222,275,100" insert "225,025,100" Line 8, strike "164,233,600" insert "166,983,600" Page 54, between lines 37 and 38, insert:

"The Arizona department of housing may use a portion of the monies appropriated for the housing trust fund deposit to support an investment for a long-term lease facilitated by this state to create a campus for transitional housing, workforce affordable housing, crisis response, detox and recovery, workforce development programs and integrated wrap-around services.

The owner and lead operator of the campus must be a nonprofit homeless provider that:

MeansHas anyat nonactiveleast casethirty-five foryears whichof documentationexperience has not been entered in theproviding childemergency welfarehomeless automatedservices systemto foradult atmen leastand sixtywomen daysin andMaricopa forcounty, whichincluding servicesthe havechronically nothomeless, beenveterans, authorizedseniors, forpeople atwith leastdisabling sixtyconditions, daysyouth and anyfamilies case that has had an investigation, has been referred to another unit and haschildren. had no contact for at least sixty days.

IncludesHas anybeen caseproviding forrapid whichrehousing theservices investigationand hasflexible beenhousing opensupport without any documentation or contactrapid forexit athousing leastsupport sixty days, any case involving in-home services for whichpersons therewho hasdo beennot noqualify contact or services authorized for atrapid leastrehousing 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 sixtyfive days.years.

For the purposes of this section:

1.

"Long-term case" means any case in which the child has been in an out-of-home placement for at least eighteen months.

2.

"Open report" means a report that is under investigation or awaiting closure by a supervisor.

On or before February 28, 2024 and August 31, 2024, the department of child safety shall present a report to the joint legislative budget committee on the progress made during July 2023 through December 2023 and January 2024 through June 2024, respectively, in meeting the caseload standard and reducing the number of backlog and long-term cases.

Each report shall include the number of backlog cases, the number of open reports, the number of long-term cases 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 long-term cases 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 long-term cases, the department's benchmark is 3,323 cases.

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 - 17 - HB 2810 budget allocation until the department of child safety submits the required report.

Sec.

18.

STATE BOARD OF CHIROPRACTIC EXAMINERS 2023-24 FTE positions 5.0 Lump sum appropriation $ 537,200 Fund sources:

Board of chiropractic examiners ||fund $ 537,200 Sec.

19.

ARIZONA COMMERCE AUTHORITY 2023-24 Operating lump sum appropriation $ 13,500,000 Arizona competes fund deposit 500,000 Asia trade offices 750,000 Asia-Pacific trade office 750,000* Canada trade office 750,000* Economic development marketing and attraction 1,000,000 Economic transition resources 9,000,000 Frankfurt, Germany trade office 500,000 Israel trade office 300,000 Mexico trade offices 500,000 Rural broadband accelerated match fund deposit 25,000,000 Trade office funding 2,000,000 Water infrastructure and commerce grant fund deposit 7,000,000 Wearable technology research 2,500,000 Total appropriation — Arizona commerce authority $ 64,050,000 Fund sources:

State general fund $ 64,050,000 Pursuant to section 43-409, Arizona Revised Statutes, of the amounts listed above, $10,500,000 of the state general fund withholding tax revenues is allocated in fiscal year 2023-2024 to the Arizona commerce authority, of which $10,000,000 is credited to the Arizona commerce authority fund established by section 41-1506, Arizona Revised Statutes, and $500,000 is credited to the Arizona competes fund established by section 41-1545.01, Arizona Revised Statutes.

Of the amount appropriated in the operating lump sum, $3,500,000 is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, and is allocated as follows:

- 18 - HB 2810 1.

$1,000,000 to distribute to a federally recognized state rural development council in the national rural development partnership in this state to partner with businesses, community leaders, service organizations, economic development organizations and rural municipalities to work directly in rural communities across this state.

2.

$500,000 to establish and administer a small business incubator program to assist current and former inmates who are participating in a state program in which the state department of corrections and the department of economic security collaborate and bring comprehensive services to inmates who are nearing release.

On or before September 1, 2024, the authority shall submit a report to the directors of the joint legislative budget committee and the governor's office of strategic planning and budgeting on the program implementation, the number of participants, the industry of employment or entrepreneurship and program results, including the recidivism rates of program participants.

$500,000Has toat distributeleast toten ayears nonpartisanof publicexperience foundationrunning ina thismass statecongregate thatshelter isof qualifiedfour underhundred sectionor 501(c)(3)more ofbeds, theannually internalserves revenueat codeleast andfive thatthousand ispeople associated with ahomeless statewideshelter businessand traderelated organizationhousing thatservices, ishas qualifiedan underannual sectionbudget 501(c)(6) of theat internalleast revenue$10,000,000 code and thatparticipates representsin multiplethe industriescoordinate toentry developprocess aand strategicthe frameworkhomeless formanagement policymakersinformation tosystem." continuePage job56, growth,line economic13, diversificationstrike and"205.0" privateinsert sector"203.0" investmentsLine that14, willstrike make"18,543,200" thisinsert state"18,441,100" aLine top24, statestrike economy"733,300" andinsert international"609,500" trading-5- partnerHouse byAmendments 2030.to H.B.

4.2810 Page 56, line 31, strike "62,764,400" insert "62,538,500" Line 33, strike "29,496,900" insert "29,271,000" Page 60, strike lines 23 through 30 Page 65, line 6, strike "200,000" insert "450,000" Line 10, strike "6,385,900" insert "6,635,900" Line 12, strike "200,000" insert "450,000" Page 68, line 4, strike "281,533,100" insert "282,733,100" Line 28, strike "4,100,000" insert " 4,100,000" Strike line 29 Line 31, strike "453,408,200" insert "453,108,200" Line 33, strike "364,293,000" insert "363,993,000" Page 71, lines 1 and 3, strike "1,098,600" insert "798,600" Line 9, after the period insert "Resource providers must have coaches with backgrounds in law enforcement who have been trained in coaching with the best practices for law enforcement coaching from current or former federal bureau of investigation national academy instructors and must provide coaching services on an online platform that allows law enforcement professionals to choose a coach that fits their desired area of improvement.

$500,000The provider must offer a wide array of subject areas and must have analytics to distributemeasure impacts specific to aimprovement, membershipincluding organizationofficer inretention." thisLine state16, thatstrike is"trained" qualifiedLine under17, sectionafter 501(c)(6)"enforcement" strike remainder of line Line 18, strike "coaching services online" insert "who have been trained in coaching with the internalbest revenuepractices codefor law enforcement coaching from current or former federal bureau of investigation national academy instructors and thatmust servesprovide ascoaching aservices resourceon huban foronline allplatform smallthat businessesallows inlaw thisenforcement stateprofessionals to establishchoose a programcoach tothat recruitfits andtheir retaindesired truckarea drivers.of improvement.

5.The provider must offer a wide array of subject areas and must have analytics to measure impacts specific to improvement, including officer retention" -6- House Amendments to H.B.

$1,000,0002810 toPage the71, Arizonastrike statelines trade29 expansionthrough program.37, insert:

Monies"Of inthe amount appropriated to the economicdepartment transitionof resourcespublic linesafety itemfor shallonetime beK-9 distributedsupport toin afiscal nonprofityear organization2022-2023 forpursuant capitalto projects,Laws economic2022, sustainabilitychapter developments,313, renewablesection energy77, projects$1,900,000 andfrom broadbandthe projectsstate locatedgeneral withinfund twentyis milesexempt from the provisions of asection coal35-190, mineArizona thatRevised closedStatutes, withinrelating theto pastlapsing fiveof years.appropriations.

TheOf authoritythe shallamount useappropriated in the moniesoperating inlump thesum, rural$1,500,000 broadbandis acceleratedfor matcha fundonetime depositincrease linefrom itemthe tostate providegeneral fundingfund in fiscal year 2023-2024 for projectsrapid thatDNA willtesting receiveand matchinganalysis." moniesPage from75, federalline programs40, relatedstrike to"7,452,600" broadbandinsert expansion."7,952,600" Lines 43 and 45, strike "8,552,600" insert "9,052,600" After line 45, insert:

On"The ortourism beforefund Decemberdeposit 1,line 2023,item includes $250,000 that the authorityoffice of tourism shall reportdistribute to thea president501(c)(6) ofmembership theorganization senate,in thethis speakerstate ofthat therepresents housestatewide ofhotels representatives and theresorts, directortourism ofattractions, thedestination jointmarketing legislativeorganizations, budgetsports committeeteams, detailingairlines, theairports authority'sand implementationrelated planbusiness forpartners theto moniesadvance inworkforce thedevelopment tradeand officeeducation fundinginitiatives linefor item,the includinglodging proposedand tradetourism officeindustry. locations.

-The 19tourism -fund HBdeposit 2810line Theitem authorityincludes $250,000 that the office of tourism shall distribute theto moniesa 501(c)(6) membership organization in thethis wearablestate technologythat researchrepresents linerestaurants itemto advance workforce development initiatives and for campaigns to appliedhighlight researchthis centersstate's locatedrestaurant and hospitality industry in thissupport stateof thatincreasing specializeculinary tourism in wearablethis technology,state." includingPage hardware80, orstrike softwarelines components,18 orthrough both.28 Page 81, line 4, after "internships" insert "for program fees and housing costs" Line 6, after "internships" insert "and short-term programs" Line 7, after the period insert "Short-term programs include one-week seminars and learning opportunities shorter than one academic semester." -7- House Amendments to H.B.

Subject2810 toPage available81, funding,lines the10 authorityand shall11, distributeafter monies"internships" appropriatedinsert in"and theshort-term wearableprograms" technologyPage research86, line item15, tostrike any"16,200,000" appliedinsert research"15,200,000" centerLine in22, incrementsstrike of"670,522,100" upinsert to"669,522,100" $250,000Line within24, thirtystrike days"287,710,800" afterinset the"286,710,800" appliedBetween researchlines center32 notifiesand the33, authorityinsert: in writing that the applied research center has received a matching amount from sources other than this state.

An"Fall appliedprevention researchstudies center1,000,000" thatLine receives36, astrike distribution"146,073,000" pursuantinsert to"147,073,000" thisLine section38, muststrike collaborate"79,397,700" withinsert universities,"80,397,700" nonprofitPage business88, associations,between healthlines science26 researchand centers,27, institutesinsert: or other technology businesses that do business in this state.

On"One orhundred beforepercent Septemberof 15,the 2027,land earnings and interest from the appliedschool researchof centermines orland institutefund shall returnbe distributed to the authorityuniversity allof moniesArizona receivedschool byof themining appliedand researchmineral centerresources orin institutecompliance pursuantwith tothe thisenabling sectionact thatand remainthe unexpendedConstitution andof unencumberedArizona." onPage September89, 1,between 2027.lines 10 and 11, insert:

The"Tribal authorityconnectivity shallproject deposit1,500,000" theLine returned19, moniesstrike in"80,623,700" theinsert state"82,123,700" generalLine fund.21, strike "20,064,200" insert "21,564,200" Between lines 37 and 38, insert:

The"Monies authorityappropriated for the tribal connectivity project line item shall notifybe theused presidentto ofexpand the senatetelecommunications and thesatellite speakerinternet capabilities of thechapter househouses ofin representativesrural ontribal ornations beforeto Julyincrease 1,access 2024to services and Julybenefits." 1,Page 202591, ifline the3, authoritystrike has"Eastern notArizona distributedwater" anyinsert monies"Water" pursuantLine to4, thisstrike section."3,000,000*" insert "3,000,000" Between lines 4 and 5, insert:

An"Gilbert appliedwells researchproject center27,800,000 orGlendale instituteirrigation thatand receivesxeriscaping monies810,000 pursuantLittle toColorado thisRiver sectionlevee shall20,000,000 annuallyMohave submitwash anrecharge expenditurebasin and3,400,000 performancePeoria reportwells toproject the10,000,000" authority.-8- House Amendments to H.B.

On2810 orPage before91, Februarylines 16 ofand each8, year,strike the"3,000,000" authorityinsert shall"65,010,000" transmitStrike thelines report9 tothrough the17, jointinsert: legislative budget committee and the governor's office of strategic planning and budgeting.

For"The thewater purposesprojects ofassistance thisgrants distributingare theallocated moniesto provide financial assistance to cities and towns that provide water in theNavajo wearableand technologyApache researchcounties lineand itemto pursuantprovide financial assistance to thisirrigation section,districts thein authorityCochise isand exemptGraham fromcounties theto requirementscontract for services of titleoutside 41,advisors, chapterattorneys, 23,consultants Arizonaand Revisedaides Statutes.that are reasonably necessary to enable these cities and towns and irrigation districts to adequately perform their duties.

TheOf appropriationthe madeamount inappropriated to the wearablewater technologyprojects researchassistance grants line itemitem, $1,000,000 is exemptallocated fromto theprovide provisionsfinancial ofassistance sectionto 35-190,cities Arizonaand Revisedtowns Statutes,that relatingprovide water in Navajo and Apache counties to lapsingcontract for services of appropriations,outside exceptadvisors, thatattorneys, anyconsultants moniesand aides that remainare unexpendedreasonably andnecessary unencumberedor ondesirable Juneto 30,enable 2027the revertcities and towns to theadequately stateperform generaltheir fund.duties.

Sec.Of the amount appropriated to the water projects assistance grants line item, $1,000,000 is allocated to provide financial assistance to irrigation districts in Graham county to contract for services of outside advisors, attorneys, consultants and aides that are reasonably necessary or desirable to enable the irrigation districts to adequately perform their duties.

20.Of the amount appropriated to the water projects assistance grants line item, $1,000,000 is allocated to provide financial assistance to irrigation districts in Cochise county along the San Pedro River to contract for services of outside advisors, attorneys, consultants and aides that are reasonably necessary or desirable to enable the irrigation districts to adequately perform their duties.

ARIZONA-9- COMMUNITYHouse COLLEGESAmendments 2023-24to EqualizationH.B. aid Cochise $ 9,759,600 Graham 19,912,000 Navajo 11,189,600 Yuma/La Paz 716,100 Total — equalization aid $ 41,577,300 - 20 - HB 2810 Operating state aid Cochise $ 4,423,700 Coconino 1,415,900 Gila 151,400 Graham 1,661,900 Mohave 924,400 Navajo 1,346,100 Pinal 1,090,900 Yavapai 373,000 Yuma/La Paz 2,260,700 Total — operating state aid $ 13,648,000 STEM and workforce programs state aid Cochise $ 954,700 Coconino 309,500 Gila 88,700 Graham 409,700 Maricopa 7,927,600 Mohave 378,600 Navajo 262,500 Pima 1,769,000 Pinal 656,700 Santa Cruz 21,200 Yavapai 637,200 Yuma/La Paz 777,700 Total — STEM and workforce programs state aid $ 14,193,100 Rural aid Cochise $ 5,769,700 Coconino 1,520,600 Gila 439,500 Graham 1,917,800 Mohave 1,866,800 Navajo 1,322,400 Pinal 3,110,400 Santa Cruz 97,000 Yavapai 3,084,400 Yuma/La Paz 4,871,400 Total — rural aid $ 24,000,000 Rural county reimbursement subsidy $ 1,082,900 Arizona western college nursing program 7,500,000 Additional Gila workforce development aid 200,000 - 21 - HB 2810 Diné college remedial education 1,000,000 Tohono O'odham community college remedial education 2,000,000 San Carlos Apache college remedial education 2,000,000 Santa Cruz provisional community college funding 200,000 Total appropriation — Arizona community colleges $107,401,300 Fund sources:

State2810 generalThe fundapplications $107,401,300for Ofthese themonies $1,082,900shall appropriatedbe presented for approval to the ruralwater countyinfrastructure reimbursementfinance subsidyauthority lineof item,Arizona Apacheand countythe receivesauthority $699,300shall anddistribute Greenleethese countymonies receivesto $383,600.the qualified entities before December 31, 2023.

OnThe orwater beforeinfrastructure Octoberfinance 15,authority 2024, the Diné college board of regentsArizona shall submitdistribute to the governor,monies in the speakerGilbert ofwells theproject houseline ofitem representatives,to the presidenttown of theGilbert senate,for the secretaryrehabilitation of state and thedrilling jointof legislativenew budgetwater committeewells. a report that details the course completion rate for students who received remedial education during the 2023-2024 academic year.

OnThe orwater beforeinfrastructure Octoberfinance 15,authority 2024, the Tohono O'odham community college board of trusteesArizona shall submitdistribute to the governor,monies thein speaker of the houseGlendale ofirrigation representatives,and thexeriscaping presidentline ofitem theto senate, the secretarycity of stateGlendale and the joint legislative budget committee a report that details the course completion rate for studentsirrigation whosystem receivedand remedialxeriscaping. education during the 2023-2024 academic year.

OnThe orwater beforeinfrastructure Octoberfinance 15,authority 2024, the San Carlos Apache college board of regentsArizona shall submitdistribute to the governor,monies thein speaker of the houseLittle ofColorado representatives,River thelevee presidentline ofitem theto senate, the secretarycity of stateWinslow andto thereconstruct joint legislative budget committee a report that details the courseLittle completionColorado rateRiver forlevee. students who received remedial education during the 2023-2024 academic year.

Sec.The water infrastructure finance authority of Arizona shall distribute the monies in the Mohave wash recharge basin line item to Mohave county to design and construct the Mohave wash recharge basin.

21.The water infrastructure finance authority of Arizona shall distribute the monies in the Peoria wells project line item to the city of Peoria for new water wells and water infrastructure projects." Page 96, between lines 17 and 18, insert:

REGISTRAR"Sec. OF CONTRACTORS 2023-24 FTE positions 105.6 Operating lump sum appropriation $ 12,737,000 Office of administrative || hearings costs 1,017,600 Total appropriation — registrar of contractors $ 13,754,600 Fund sources:

Registrar of contractors fund $ 13,754,600 - 22 - HB 2810 Sec.

22.

CORPORATION COMMISSION 2023-24 FTE positions 301.9 Operating lump sum appropriation $ 36,288,500 Corporation filings, same-day service 417,000 Utilities audits, studies, investigations and hearings 380,000* Total appropriation — corporation commission $ 37,085,500 Fund sources:

State general fund $ 807,200 Arizona arts trust fund 58,800 Investment management regulatory || and enforcement fund 1,312,000 Public access fund 8,464,500 Securities regulatory and enforcement fund 7,706,900 Utility regulation revolving fund 18,736,100 Sec.

23.

STATE DEPARTMENT OF CORRECTIONS 2023-24 FTE positions 9,569.0 Operating lump sum appropriation $ 898,184,300 Private prison per diem 289,858,400 Community corrections 27,681,200 Inmate health care contracted services 321,620,200 Substance abuse treatment 5,445,400 Transitional and reentry housing 5,000,000* Transitional housing grants 2,000,000 Inmate dog training 750,000 Total appropriation — state department of corrections $1,550,539,500 Fund sources:

State general fund $1,492,641,000 State education fund for correctional education 738,900 Alcohol abuse treatment fund 555,800 Penitentiary land fund 2,777,600 State charitable, penal and reformatory institutions land fund 2,665,100 Corrections fund 31,312,500 - 23 - HB 2810 Transition program fund 4,400,300 Prison construction and operations fund 14,106,800 Inmate store proceeds fund 1,341,500 Of the amount appropriated in the operating lump sum, $495,853,200 is designated for personal services, $234,006,200 is designated for employee-related expenditures and $15,540,500 is designated for overtime expenditures.

The department shall submit an expenditure plan for review by the joint legislative budget committee before spending these monies other than for personal services or employee-related expenditures.

After the department submits an expenditure plan to the joint legislative budget committee, the department may transfer personal services and employee-related expenditures savings from the operating budget to the private prison per diem line item for private prison staff stipends.

The amount of any private prison staff stipend may not exceed the amount given to department staff.

The expenditure plan is not subject to review by the joint legislative budget committee.

Private prison vendors who contract with this state may use staff vacancy savings to pay for overtime costs without incurring a penalty or staffing offset.

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, 2023, the state department of corrections shall provide a report on bed capacity to the joint legislative budget committee.

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, 2022 and June 30, 2023 and the projected capacity for June 30, 2024, as well as the reasons for any change within that time - 24 - HB 2810 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 the department's November 1, 2023 report to open or close 100 or more state-operated or private prison rated beds, the department shall submit a plan detailing the proposed bed changes 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, 2023 and July 15, 2024, 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.

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 $738,900, the state department of corrections shall report the intended use of the monies to the director of the joint legislative budget committee.

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, 2023 and February 1, 2024, the state department of corrections shall submit a report to the joint legislative budget committee on the status of all inmate health care performance measures that are tracked by the department for contract monitoring purposes.

Each report must include:

1.

The total number of performance measures, by facility, for which the department is not in substantial compliance.

2.

An explanation for each instance of noncompliance.

3.

The department's plan to comply with the performance measures.

- 25 - HB 2810 On or before August 1, 2023, 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 2023-2024.

The department shall report actual fiscal year 2022-2023, estimated fiscal year 2023-2024 and requested fiscal year 2024-2025 expenditures as delineated in the prior year when the department submits its fiscal year 2024-2025 budget request pursuant to section 35-113, Arizona Revised Statutes.

On or before July 15, 2023, the state department of corrections shall submit a report to the joint legislative budget committee detailing the expenditure of monies appropriated in fiscal year 2021-2022 for medical staffing augmentation.

The department shall continue to report on July 15 of each year until all monies have been expended.

The amount appropriated in the transitional and reentry housing line item shall be used by the state department of corrections to secure through a competitive grant process a program that does all of the following:

1.

Provides evidence-based, evidence-informed and culturally competent substance use treatment and substance use early intervention services that includes referral services, stabilization, detox, inpatient treatment, transitional residence and outpatient services to individuals who may have one or a combination of the following conditions:

(a) Involvement with the justice system.

(b) A mental health diagnosis, including a diagnosis as being seriously mentally ill.

(c) A co-occurring chronic health condition.

(d) Experienced homelessness or are at a high risk of becoming homeless.

2.

Provides residential inpatient treatment services for up to ninety days and provides long-term recovery supportive housing for up to twenty-four months after inpatient treatment services end.

3.

Delivers forensic peer and family support services to enhance and strengthen successful reentry into the community that include workforce development, securing permanent housing, navigating systems of care, educational and professional development opportunities, family connection and reintegration services, supporting multiple pathways to recovery and providing sober social activities.

4.

Uses technology to promote long-term recovery.

5.

Delivers treatment for reentry and long-term recovery services and provides support via a campus-based continuum of care model where services and support are colocated.

- 26 - HB 2810 The amount appropriated in the transitional housing grants line item shall be used to establish a program to provide grants to nonprofit organizations that support individuals who are incarcerated by helping prepare them for release and transition back into the community.

To be eligible for a grant, a nonprofit organization must meet all of the following criteria:

1.

Have a verifiable record of mentoring at least three thousand inmates while the inmates were in prison for at least a two-year period.

2.

Use the grant monies for individuals that have been previously mentored by the nonprofit organization.

To receive resources from the grant, individuals being released from prison must have been mentored for at least three months by the nonprofit organization while the individual was in prison.

3.

Demonstrate that the nonprofit organization can provide individuals being released from prison with all of the following:

(a) Up to two weeks of housing at no cost to the individual, if necessary as assessed by the nonprofit organization and up to six months of housing at a reduced rate.

(b) Behavioral health services, including peer support and case management.

(c) Assistance with obtaining government-issued documents.

(d) Within four months after release, assistance with securing employment that offers health insurance and assistance with disenrolling from the Arizona health care cost containment system.

On or before August 31, 2024, the department shall submit a report to the governor, the president of the senate and the speaker of the house of representatives that includes all of the following for the prior year:

1.

The names of the nonprofit organizations that were awarded grants.

2.

The number of individuals who were served by the nonprofit organizations through the grant program.

3.

The number of individuals who were served by the nonprofit organizations, who found employment that provides health insurance and who were disenrolled from the Arizona health care cost containment system.

The amount appropriated in the inmate dog training line item shall be used to contract with a nonprofit organization that trains inmates to rehabilitate and resocialize at-risk shelter dogs.

Sec.

24.

ARIZONA CRIMINAL JUSTICE COMMISSION 2023-24 FTE positions 11.0 Operating lump sum appropriation $ 1,382,100 Law enforcement crime victim notification fund deposit 10,000,000 - 27 - HB 2810 Major incident regional law enforcement task force 600,000 State aid to county attorneys 973,700 State aid to indigent defense 700,000 State aid for juvenile dependency proceedings fund deposit 2,000,000 Victim compensation and assistance 6,224,600 Total appropriation — Arizona criminal justice commission $ 21,880,400 Fund sources:

State general fund $ 14,600,000 Criminal justice enhancement fund 708,900 Resource center fund 647,100 State aid to county attorneys fund 973,700 State aid to indigent defense fund 700,000 Victim compensation and assistance || fund 4,250,700 Of the $10,000,000 appropriated in the law enforcement crime victim notification fund deposit line item, the Arizona criminal justice commission may use up to $400,000 in fiscal year 2023-2024 to evaluate, certify and pay for any costs associated with the law enforcement crime victim notification fund established by section 41-180, Arizona Revised Statutes.

All victim compensation and assistance fund monies received by the Arizona criminal justice commission in excess of $4,250,700 in fiscal year 2023-2024 are appropriated to the crime victims program.

Before spending any victim compensation and assistance fund monies in excess of $4,250,700 in fiscal year 2023-2024, 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 2023-2024 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 2023-2024, the Arizona criminal justice commission shall report the intended use of the monies to the joint legislative budget committee.

Sec.

25.

ARIZONA STATE SCHOOLS FOR THE DEAF AND THE BLIND 2023-24 FTE positions 562.2 Administration/statewide $ 9,298,500 Phoenix day school for the deaf 12,098,200 - 28 - HB 2810 Tucson campus 11,967,500 Preschool/outreach programs 7,181,200 School bus/agency vehicle replacement 369,000 Cooperative services 20,125,900 Total appropriation — Arizona state schools for the deaf and the blind $ 61,040,300 Fund sources:

State general fund $ 25,571,700 Schools for the deaf and the blind fund 15,342,700 Cooperative services fund 20,125,900 Before spending any schools for the deaf and the blind fund monies in excess of $15,342,700 in fiscal year 2023-2024, 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 $20,125,900 in fiscal year 2023-2024, 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.

26.

COMMISSION FOR THE DEAF AND THE HARD OF HEARING 2023-24 FTE positions 21.0 Operating lump sum appropriation $ 4,644,000 Support services for the deaf-blind 192,000 Total appropriation — commission for the deaf and the hard of hearing $ 4,836,000 Fund sources:

Telecommunication fund for ||the deaf $ 4,836,000 The amount appropriated for the aging individuals research line item in fiscal year 2022-2023 pursuant to Laws 2022, chapter 313, section 26 is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to the lapsing of appropriations, until June 30, 2024.

Sec.

27.

STATE BOARD OF DENTAL EXAMINERS 2023-24 FTE positions 13.0 Lump sum appropriation $ 2,059,900 Fund sources:

Dental board fund $ 2,059,900 - 29 - HB 2810 Sec.

28.

OFFICE OF ECONOMIC OPPORTUNITY 2023-24 FTE positions 5.0 Operating lump sum appropriation $ 525,800 Microbusiness loan fund deposit 5,000,000 Total appropriation — office of economic opportunity $ 5,525,800 Fund sources:

State general fund $ 5,525,800 Sec.

29.

DEPARTMENT OF ECONOMIC SECURITY 2023-24 FTE positions 4,533.8 Operating lump sum appropriation $332,426,600 Administration Attorney general legal services 11,379,800 Aging and adult services Adult services 15,731,900 Community and emergency services 3,724,000 Coordinated homeless services 2,522,600 Coordinated hunger services 2,254,600 Produce incentive program 5,462,600* Globe-Miami area food bank 250,000 Domestic violence prevention 14,004,000 Long-term care ombudsman 1,000,000 Benefits and medical eligibility Temporary assistance for needy families — cash benefits 22,736,400 Tribal pass-through funding 4,680,300 Diaper and incontinence products assistance 1,000,000 Child support enforcement County participation 8,539,700 Developmental disabilities DDD premium tax payment 61,199,900 Case management — medicaid 104,597,100 Home and community based services — medicaid 2,349,691,300 Institutional services — medicaid 47,171,500 Physical and behavioral health services — medicaid 541,328,700 Medicare clawback payments 6,055,500 - 30 - HB 2810 Targeted case management — medicaid 15,321,600 State match transfer from AHCCCS 982,330,300 Case management — state-only 6,354,000 Home and community based services — state-only 14,089,000 Cost effectiveness study — client services 8,420,000 Arizona early intervention program 14,119,000 State-funded long-term care services 43,534,700 Group home monitoring program 1,200,000 Graham county rehabilitation center 830,000 Employment and rehabilitation services JOBS 11,005,600 Child care subsidy 187,080,200 Independent living rehabilitation services 1,289,400 Rehabilitation services 7,249,100 Workforce innovation and opportunity act services 85,824,200 Total appropriation and expenditure authority — department of economic security $4,914,403,600 Fund sources:

State general fund $1,206,858,700 Federal child care and development fund block grant 200,010,200 Federal temporary assistance for needy families block grant 66,591,200 Long-term care system fund 33,864,200 Public assistance collections fund 430,400 Special administration fund 4,643,200 Spinal and head injuries trust fund 2,388,200 Statewide cost allocation plan fund 1,000,000 Child support enforcement administration fund 17,683,300 Domestic violence services fund 4,000,300 Workforce investment act grant 87,110,800 - 31 - HB 2810 Child support enforcement administration fund expenditure authority 43,047,000 Developmental disabilities medicaid expenditure authority 3,192,363,800 Health care investment fund expenditure authority 54,412,300 Aging and adult services The amount appropriated for the Globe-Miami area food bank line item shall be distributed to a food bank that maintains its headquarters in the Globe-Miami area.

All domestic violence services fund monies in excess of $4,000,300 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 $4,000,300 to the joint legislative budget committee.

On or before December 15, 2023, 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.

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.

Child support enforcement All state shares of retained earnings, fees and federal incentives in excess of $17,683,300 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.

Developmental disabilities On or before September 1, 2024, 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 2023-2024 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, 2024, the department shall also report to the director of the joint legislative - 32 - HB 2810 budget committee the total costs associated with the Arizona training program at Coolidge in fiscal year 2023-2024.

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, except that transfers from the state match transfer from AHCCCS line item into those line items do not require a report for review.

On or before November 30, 2023 and November 30, 2024, the department of economic security shall submit a report to the joint legislative budget committee regarding expenditures from the cost effectiveness study – client services line item in the previous fiscal year.

The report shall include the number of clients and total amounts spent from the line item in each setting type along with expenditures for those clients in other line items.

The report shall also include cost effectiveness spending in other line items.

The amount appropriated for the home and community based services – medicaid line item includes $115,793,900 from expenditure authority to implement the American rescue plan act of 2021 (P.L.

117-2) home and community-based services spending plan in fiscal year 2023-2024.

The department may not use these monies for marketing purposes and any direct payments or grants provided with the monies shall include a notification to the recipient that the monies are onetime funding.

Beginning on or - 33 - HB 2810 before July 31, 2023, the department shall provide quarterly reports to the joint legislative budget committee at the same time that the information is provided to the centers for medicare and medicaid services reflecting any changes to the department's spending plan.

Of the amount appropriated for the home and community based services – medicaid line item, $115,793,900 is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations.

The amount appropriated for the Graham county rehabilitation center line item includes $800,000 to remodel the Graham county rehabilitation center facilities in Safford and $30,000 for an afterschool program.

Employment and rehabilitation services On or before September 15, 2023 and March 15, 2024, 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 (P.L.

117-2).

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.

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 $87,110,800 are appropriated to the workforce innovation and opportunity act services line item.

Before spending these increased monies, the department shall report the intended use of monies in excess of $87,110,800 to the joint legislative budget committee.

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.

- 34 - HB 2810 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.

30.

STATE BOARD OF EDUCATION 2023-24 FTE positions 23.0 Operating lump sum appropriation $ 3,155,100 Arizona empowerment scholarship account appeals 221,600 Total appropriation — state board of education $ 3,376,700 Fund sources:

State general fund $ 3,376,700 Sec.

31.

SUPERINTENDENT OF PUBLIC INSTRUCTION 2023-24 FTE positions 232.9 Operating lump sum appropriation $ 25,633,100 Formula programs Basic state aid 6,138,916,800 Onetime state aid supplement 300,000,000 Special education fund 36,029,200 Other state aid to districts 983,900 Classroom site fund 1,018,912,500 Instructional improvement fund 60,425,700 Property tax relief Additional state aid 511,613,100 Non-formula programs Accountability and achievement testing 16,442,300 Adult education 21,769,100 Alternative teacher development program 1,800,000 Arizona civics education and leadership development program 300,000 - 35 - HB 2810 Arizona English language learner fund 4,960,400 Art consumables 10,000,000 Broadband expansion fund deposit 5,000,000 CTED certification exam fee reimbursement 1,000,000 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 professional development program 1,000,000 Dual enrollment student development fund deposit 15,000,000 Dual enrollment teacher development fund deposit 500,000 Early education and career exploration program 5,000,000 Early literacy 18,880,000 Education learning and accountability system 5,447,100 English learner administration 6,597,100 Feminine hygiene products 2,000,000 Flagstaff robotics program 20,000 Geographic literacy 100,000 Gifted assessments 850,000 Gila county jail education 10,000 Jobs for Arizona graduates 500,000 Juvenile detention centers 52,600 K-12 transportation formula study 250,000 Live, remote instructional courses 100,000 Nonprofit education initiatives 100,000 Nonprofit low-income assistance 500,000 Phoenix science education programs 2,500,000 Public school campus community gardens 100,000* Public school campus trees 300,000* School safety program 81,992,600 State block grant for vocational education 11,774,700 - 36 - HB 2810 Student level data access 357,900 Teacher certification 2,554,500 Teacher professional development 3,000,000 Tribal college dual enrollment program 325,000 Youth summer education program 250,000 Total appropriation and expenditure authority — superintendent of public instruction $8,324,585,500 Fund sources:

State general fund $6,732,358,700 Education sales tax fund 7,000,000 Permanent state school fund 342,797,300 Teacher certification fund 2,527,900 Tribal college dual enrollment program fund 325,000 Department of education empowerment scholarship account fund 357,900 Expenditure authority 1,239,218,700 Operating lump sum The appropriated amount for the operating lump sum includes a onetime increase of $10,000,000 from the state general fund in fiscal year 2023-2024 for operating expenses.

The increase is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until June 30, 2026.

Any monies available to the department of education pursuant to section 42-5029.02, subsection A, 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 42-5029.02, subsection A, paragraph 8, Arizona Revised Statutes.

Any monies available to the department of education pursuant to section 42-5029.02, subsection A, 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 42-5029.02, subsection A, 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 $342,797,300 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 2023-2024.

- 37 - HB 2810 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 42-5029.02, subsection A, paragraph 5, Arizona Revised Statutes, for the increased cost of basic state aid under section 15-971, Arizona Revised Statutes, due to added school days in excess of the expenditure authority amounts are allocated for the purposes of section 42-5029.02, subsection A, paragraph 5, Arizona Revised Statutes.

Other programs The department of education shall allocate the appropriated amount for the onetime state aid supplement to school districts and charter schools on a pro rata basis using the weighted student count for the school district or charter school for the fiscal year pursuant to section 15-943, paragraph 2, subdivision (a), Arizona Revised Statutes, and increase the budget limits pursuant to section 15-947, Arizona Revised Statutes, accordingly.

For the purposes of this paragraph, the weighted student count for a school district that serves as the district of attendance for nonresident pupils shall be increased to include nonresident pupils who attend school in the school district.

A school district may budget the monies that it receives from the onetime state aid supplement line item in either the school district's maintenance and operation fund or unrestricted capital outlay fund.

Any monies available to the department of education for the classroom site fund pursuant to section 37-521, subsection B, paragraph 4, Arizona Revised Statutes, and section 42-5029.02, subsection A, paragraph 10, Arizona Revised Statutes, in excess of expenditure authority amounts are allocated for the purposes of section 37-521, subsection B, paragraph 4, Arizona Revised Statutes, and section 42-5029.02, subsection A, paragraph 10, Arizona Revised Statutes.

- 38 - HB 2810 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 42-5029.02, subsection A, paragraph 7, Arizona Revised Statutes, in excess of the expenditure authority amounts are allocated for the purposes of section 42-5029.02, subsection A, paragraph 7, Arizona Revised Statutes.

The appropriated amount for adult education includes $4,620,000 for the continuing high school and workforce training program established by section 15-217.01, Arizona Revised Statutes, $6,000,000 for deposit in the adult workforce diploma program fund established by section 15-217.02, subsection B, Arizona Revised Statutes and $6,000,000 for deposit in the community college adult education workforce development program fund established by section 15-217.03, subsection C, Arizona Revised Statutes.

The appropriated amount for art consumables shall be distributed for grants of not more than $1,000 per recipient to public school arts teachers and any public school teachers for preschool through third grade for arts supplies, materials and instructional aids that are of a consumable nature as defined by the uniform system of financial records prescribed by the auditor general pursuant to section 15-271, 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, 2025.

- 39 - HB 2810 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.

Before spending the $6,880,000 increase in the appropriated amount for the early literacy line item for literacy coaches, kindergarten entry assessments, dyslexia training or science of reading exams, the department of education shall submit an expenditure plan to the joint legislative budget committee and the governor's office of strategic planning and budgeting.

The department shall report its actual expenditures for the early literacy line item for literacy coaches, kindergarten entry assessments, dyslexia training and science of reading exams to the joint legislative budget committee on or before July 31, 2024.

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 jobs for Arizona graduates to issue a grant to a nonprofit organization for a JOBS for Arizona graduates program.

The appropriated amount for juvenile detention centers includes $22,600 for Yavapai county, $20,000 for Pinal county and $10,000 for Maricopa county.

The appropriated amount for the K-12 transportation formula study shall be used to develop a per pupil weighted transportation funding formula for K-12 students.

The appropriated amount shall be used only for the costs associated with developing the per pupil weighted transportation formula.

On or before December 31, 2023, the department of education 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 - 40 - HB 2810 representatives education committees, the director of the joint legislative budget committee and the director of the governor's office of strategic planning and budgeting that includes at least the following information:

1.

The amount determined to be the per pupil base transportation amount for every K-12 student.

2.

The appropriate weight for students with extraordinary needs.

3.

The appropriate weight for students in grades nine through twelve .

4.

The appropriate weight for foster and homeless students.

5.

The appropriate sparsity weight for rural, remote and isolated students, including long-distance open enrollment students.

The appropriated amount for live, remote instructional courses is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until December 31, 2025.

The department of education shall distribute the appropriated amount for nonprofit education initiatives to a nonprofit organization based in Scottsdale that is qualified under section 501(c)(3) of the internal revenue code and that provides scholarships and other educational programming and promotes youth activities, sports and cultural enrichment.

The department of education shall distribute the appropriated amount for nonprofit low-income assistance to a nonprofit organization that is qualified under section 501(c)(3) of the internal revenue code and that provides low-income children in kindergarten programs and grades one through eight with new clothing and shoes, hygiene kits, and new books.

The department of education shall distribute the appropriated amount for public school campus trees for grants to public schools to plant low-biogenic volatile organic compound-emitting trees on school campuses that are appropriate for each school's respective climate.

Until December 31, 2023, the department shall distribute the appropriated amount on a first-come, first-served basis only to public schools in this state at which seventy-five percent or more of the students are eligible for free or reduced-price lunches under the national school lunch and child nutrition acts (42 United States Code sections 1751 through 1793).

If any monies remain undistributed from and after December 31, 2023, the department shall distribute the monies on a first-come, first-served basis to public schools in this state.

The department may require each public school that receives grant monies to issue a report regarding the school's use of monies received.

A public school that receives monies from the department may partner with nonprofit organizations to plant the trees on the school's campus.

- 41 - HB 2810 The amount appropriated for the school safety program in fiscal year 2022-2023 pursuant to Laws 2022, chapter 313, section 31 included an increase of $50,000,000 for additional school safety grants.

In allocating the $50,000,000 increase, the department of education shall first distribute monies to schools on the school safety program waiting list to receive grants for the costs of placing school resource officers on school campuses.

The awarded grants may not supplant funding provided by local governments for school resource officers.

If the total cost of funding grants for school resource officer costs is less than $50,000,000, the department may allocate the remaining monies to grants to schools for the costs of placing school counselors and social workers on school campuses pursuant to section 15-154, Arizona Revised Statutes.

Any monies available to the department of education for school safety pursuant to section 42-5029.02, subsection A, paragraph 6, Arizona Revised Statutes, in excess of the expenditure authority amounts are allocated for the purposes of section 42-5029.02, subsection A, paragraph 6, Arizona Revised Statutes.

The department shall distribute the appropriated amount for Phoenix science education programs to an organization that is based in Phoenix and that provides science, technology, engineering and math education programs and professional development training.

The department shall distribute the appropriated amount for the youth summer education program to a nonprofit organization that is based in Globe and that provides summer education programs for youth.

After review by the joint legislative budget committee, in fiscal year 2023-2024, the department of education may use a portion of its fiscal year 2023-2024 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 2022-2023.

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.

- 42 - HB 2810 Sec.

32.

DEPARTMENT OF EMERGENCY AND MILITARY AFFAIRS 2023-24 FTE positions 65.1 Administration $ 2,558,000 Emergency management 876,800 Emergency management matching funds 1,544,900 Emergency hazard mitigation 1,333,300 Federal government matching repayment 759,200 Hazard mitigation assistance 462,900 Military affairs 2,142,200 National guard matching funds 3,370,000 National guard uniform allowance 300,000 National guard tuition reimbursement 1,000,000 Hazard mitigation revolving fund deposit 200,000 Total appropriation — department of emergency and military affairs $ 14,547,300 Fund sources:

State general fund $ 14,547,300 The $3,370,000 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 2023-2024 monies remaining unexpended and unencumbered on December 31, 2024 revert to the state general fund.

The $759,200 federal government matching repayment appropriation is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, except that all fiscal year 2023-2024 monies remaining unexpended and unencumbered on December 31, 2024 revert to the state general fund.

The appropriated amount for 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, 2024.

Sec.

33.

DEPARTMENT OF ENVIRONMENTAL QUALITY 2023-24 FTE positions 355.7 Operating lump sum appropriation $ 70,050,000 Direct potable reuse of treated wastewater program 1,500,000 Safe drinking water program 1,998,500 - 43 - HB 2810 Water quality fee fund deposit 9,500,000 PFAS mitigation 5,000,000* Emissions control contractor payment 26,219,500 Total appropriation — department of environmental quality $114,268,000 Fund sources:

State general fund $ 16,000,000 Air quality fund 5,830,900 Emergency response fund 132,800 Emissions inspection fund 30,484,400 Hazardous waste management fund 1,946,600 Indirect cost fund 18,629,000 Permit administration fund 7,285,600 Recycling fund 1,522,400 Safe drinking water program fund 1,998,500 Solid waste fee fund 2,589,600 Water quality fee fund 27,848,200 On or before July 31, 2024, the department of environmental quality shall report to the joint legislative budget committee on its progress expending monies for PFAS mitigation, including funded projects, anticipated projects and outcomes as a result of mitigation efforts.

The report shall include details about the scope and location of the projects.

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 2023-2024 report to the joint legislative budget committee on or before September 1, 2023.

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 2023-2024.

In addition, the department and the WQARF advisory board shall prepare and submit to the joint legislative budget committee, on or before October 1, 2023, 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 2022-2023, indicate whether the current stage of remediation is anticipated to be completed in fiscal year 2023-2024 and indicate the anticipated stage of remediation at each listed site at the end of fiscal year 2023-2024, assuming fiscal year 2023-2024 funding levels.

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

- 44 - HB 2810 All permit administration fund monies received by the department of environmental quality in excess of $7,285,600 in fiscal year 2023-2024 are appropriated to the department.

Before spending permit administration fund monies in excess of $7,285,600 in fiscal year 2023-2024, the department shall report the intended use of the monies to the joint legislative budget committee.

All monies in the department of environmental quality indirect cost fund, including the beginning balance, that are in excess of $18,629,000 in fiscal year 2023-2024 are appropriated to the department.

Before spending indirect cost fund monies in excess of $18,629,000 in fiscal year 2023-2024, the department shall report the intended use of the monies to the joint legislative budget committee.

Sec.

34.

GOVERNOR'S OFFICE OF EQUAL OPPORTUNITY 2023-24 FTE positions 5.0 Lump sum appropriation $ 311,400 Fund sources:

Personnel division fund $ 311,400 Sec.

35.

STATE BOARD OF EQUALIZATION 2023-24 FTE positions 7.0 Lump sum appropriation $ 737,900 Fund sources:

State general fund $ 737,900 Sec.

36.

BOARD OF EXECUTIVE CLEMENCY 2023-24 FTE positions 14.5 Lump sum appropriation $ 1,426,300 Fund sources:

State general fund $ 1,426,300 On or before November 1, 2023, 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 2022-2023.

Sec.

37.

ARIZONA EXPOSITION AND STATE FAIR BOARD 2023-24 FTE positions 184.0 Lump sum appropriation $ 16,056,800 Fund sources:

Arizona exposition and state fair fund $ 16,056,800 Of the monies in the Arizona exposition and state fair board operating budget, $2,000,000 shall be spent for enhanced state fair operations.

Before spending monies in the operating budget on capital projects, the board shall submit a report for review by the joint - 45 - HB 2810 committee on capital review on the scope, purpose and estimated cost of the capital improvements.

Of the monies appropriated to the Arizona exposition and state fair board in fiscal year 2022-2023 pursuant to Laws 2022, chapter 313, section 37, $2,300,000 of the lump sum appropriation is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until June 30, 2024.

Sec.

38.

ARIZONA DEPARTMENT OF FORESTRY AND FIRE MANAGEMENT 2023-24 FTE positions 235.5 Operating lump sum appropriation $ 3,937,200 Environmental county grants 250,000 Inmate firefighting crews 869,600 Postrelease firefighting crews 1,282,700 Fire suppression 200,000 State fire marshal 1,795,600 State fire school 289,100 Hazardous vegetation removal 3,040,300 US forest service land thinning 1,660,900 Wildfire mitigation 32,049,700 Total appropriation — Arizona department of forestry and fire management $ 45,375,100 Fund sources:

State general fund $ 45,375,100 The 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, 2025.

Sec.

39.

STATE BOARD OF FUNERAL DIRECTORS AND EMBALMERS 2023-24 FTE positions 4.0 Lump sum appropriation $ 476,800 Fund sources:

Board of funeral directors' and || embalmers' fund $ 476,800 Sec.

40.

ARIZONA GAME AND FISH DEPARTMENT 2023-24 FTE positions 273.5 Operating lump sum appropriation $48,091,600 Pittman-Robertson/Dingell-Johnson act 3,058,000 Total appropriation — Arizona game and fish department $51,149,600 - 46 - HB 2810 Fund sources:

Capital improvement fund $ 1,001,200 Game and fish fund 44,516,200 Wildlife endowment fund 16,200 Watercraft licensing fund 5,226,800 Game, nongame, fish and endangered species fund 389,200 Sec.

41.

DEPARTMENT OF GAMING 2023-24 FTE positions 155.8 Operating lump sum appropriation $ 13,740,100 Arizona breeders' award 250,000 Casino operations certification 2,308,700 County fairs livestock and agriculture promotion 6,029,500 Division of racing 2,431,200 Contract veterinarian 175,000 Event wagering operator license fee refund 500,000 Horseracing integrity and safety act assessment 355,100 Racing purse enhancement 5,000,000 Problem gambling _ 3,320,000 Total appropriation — department of gaming $ 34,109,600 Fund sources: