public resources; expenditures; prohibition

HB 2722, titled the "Taxpayer Protection Act," restricts Arizona state and local governments from spending public funds on private entities unless three conditions are met: (1) the spending serves a direct government function (not economic development subsidies), (2) it involves direct, proportional payment for services (not speculative benefits), and (3) the government maintains ongoing control over the expenditure. The bill defines key terms like "public purpose" (excluding private business aid) and "consideration" (requiring direct payment). It allows taxpayers or the attorney general to challenge non-compliant spending in court, requiring proof that the expenditure lacks public purpose, proper consideration, or government oversight. This directly affects all state agencies, cities, counties, and school districts managing public funds.