HB 4138 Arizona House · 57th Legislature - Second Regular Session

2026-2027; general appropriations act.

This bill, known as the 2026-2027 General Appropriations Act, allocates state funds to various Arizona agencies and departments for the upcoming fiscal year. It directly affects government entities such as the Department of Administration, the State Board of Accountancy, and the Acupuncture Board of Examiners by authorizing specific lump-sum payments and staffing levels. The legislation details how money from different state funds will be used for operations, risk management, technology projects, and assistance to smaller counties for retirement contributions and essential services. Additionally, the bill includes reporting requirements that mandate government officials submit financial and project status updates to legislative committees and the governor by specific deadlines. Although the bill passed the legislature, it was vetoed by the Governor, preventing these specific appropriations from becoming law.

Bill status vetoed 4 of 5 stages cleared

Introduction

Apr 2026

Committee Review

Apr 2026

House Passage

Apr 2026

Senate Passage

May 2026

Vetoed

May 2026

Introduced Apr 27, 2026 Vetoed May 5, 2026

Maddy AI version diff · 1 comparison

What changed between versions

Introduced Version → House Engrossed Version (04/29/2026) · 6 edits · May 4, 2026

MODERATE

The bill was reformatted from an introduced version to a House Engrossed version, which includes significant substantive additions regarding reporting requirements, fund usage restrictions, and specific allocations. Key changes include new reporting deadlines for the Department of Administration, expanded eligibility for small county assistance, and detailed specifications for tax system modernization projects.

Scope change

The bill's scope was expanded to include new reporting requirements for various departments, specific allocation rules for county assistance, and detailed technical specifications for IT projects.

REQUIREMENT

New reporting deadlines were added for the Department of Administration regarding cyber risk insurance, state surplus materials, and Maricopa county health care district deposits.

Detailed technical specifications were added for the Department of Revenue's integrated tax system modernization, requiring data capture, modeling capabilities, and confidentiality protections.

New reporting requirements were added for the Department of Child Safety regarding backlog cases, open reports, and long-term cases with specific benchmarks.

New restrictions were added to the Arizona Health Care Cost Containment System regarding graduate medical education funding, prioritizing distribution to hospitals in health professional shortage areas.

ELIGIBILITY

Eligibility for small county assistance was modified to specifically direct $500,000 to Graham County before distributing the remainder to counties with populations under 900,000.

FISCAL

Specific funding allocations were added for corrections officer employer contributions to specific counties and for graduate medical education in counties with populations under 500,000.

Floor votes · House Apr 29, 2026

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

May 5, 2026

Vetoed

Vetoed by Governor

executive

May 4, 2026

Upper · Passed

PASSED

upper

Apr 29, 2026

Lower · Passed

PASSED

lower

Apr 29, 2026

Lower · Passed

lower

Apr 28, 2026

Lower · Passed

lower

1 primary · 4 co-sponsors