encumbered monies; unauthorized use; withholding

SB 1807 requires Arizona state agencies to reserve funds before making most purchases by mandating encumbrance documents that verify sufficient budget balances. It directly affects state budget units and local governments (counties, cities, towns) that receive state appropriations. The bill creates a process where Arizona’s Attorney General can sue local governments misusing funds and, if they fail to repay, withhold future state shared revenues until repayment is complete. Key provisions include strict budget certification for expenditures and a new enforcement mechanism to recover improperly spent public monies.