SB1509 - 541R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 5-572, Arizona Revised Statutes, is amended to read:

START_STATUTE5-572. Use of monies in state lottery fund; report

A. If there are any bonds or bond related obligations payable from the state lottery revenue bond debt service fund, the state lottery revenue bond debt service fund shall be secured by a first lien on the monies in the state lottery fund after the payment of operating costs of the lottery, as prescribed in section 5‑555, subsection A, paragraph 1, until the state lottery bond debt service fund contains sufficient monies to meet all the requirements for the current period as required by the bond documents. Debt service for revenue bonds issued pursuant to this chapter shall be paid first from monies that would have otherwise been deposited pursuant to this section in the state general fund. After the requirements for the current period have been satisfied as required by the bond documents, the monies in the state lottery fund shall be expended for the expenses of the commission incurred in carrying out its powers and duties and in the operation of the lottery.

B. Of the monies remaining in the state lottery fund each fiscal year after appropriations and deposits authorized in subsection A of this section, ten million dollars $10,000,000 shall be deposited in the Arizona game and fish commission heritage fund established by section 17‑297.

C. Of the monies remaining in the state lottery fund each fiscal year after appropriations and deposits authorized in subsections A and B of this section, five million dollars $10,000,000 shall be deposited in the Arizona state parks board heritage fund established by section 41-502, $5,000,000 shall be allocated to the department of child safety for the healthy families program established by section 8‑481, four million dollars $4,000,000 shall be allocated to the Arizona board of regents for the Arizona area health education system established by section 15‑1643, three million dollars $3,000,000 shall be allocated to the department of health services to fund the teenage pregnancy prevention programs established in Laws 1995, chapter 190, sections 2 and 3, two million dollars $2,000,000 shall be allocated to the department of health services for the health start program established by section 36‑697, two million dollars $2,000,000 shall be deposited in the disease control research fund established by section 36‑274 and one million dollars $1,000,000 shall be allocated to the department of health services for the federal women, infants and children food program. The allocations in this subsection shall be adjusted annually according to changes in the GDP price deflator as defined in section 41‑563 and the allocations are exempt from the provisions of section 35‑190 relating to lapsing of appropriations. If there are not sufficient monies available pursuant to this subsection, the allocation of monies for each program shall be reduced on a pro rata basis.

D. If the state lottery director determines that monies available to the state general fund may not equal eighty‑four million one hundred fifty thousand dollars $84,150,000 in a fiscal year, the director shall not authorize deposits to the Arizona game and fish commission heritage fund pursuant to subsection B of this section until the deposits to the state general fund equal eighty‑four million one hundred fifty thousand dollars $84,150,000 in a fiscal year.

E. Of the monies remaining in the state lottery fund each fiscal year after appropriations and deposits authorized in subsections A through D of this section, one million dollars $1,000,000 or the remaining balance in the fund, whichever is less, is appropriated to the department of economic security for grants to nonprofit organizations, including faith based organizations, for homeless emergency and transitional shelters and related support services. The department of economic security shall submit a report on the amounts, recipients, purposes and results of each grant to the governor, the speaker of the house of representatives and the president of the senate on or before December 31 of each year for the prior fiscal year and shall provide a copy of this report to the secretary of state.

F. Of the monies remaining in the state lottery fund each fiscal year after appropriations and deposits authorized in subsections A through E of this section, and after a total of at least ninety‑nine million six hundred forty thousand dollars $99,640,000 has been deposited in the state general fund, three million five hundred thousand dollars $3,500,000 shall be deposited in the Arizona competes fund established by section 41‑1545.01. The balance in the state lottery fund remaining after deposits into the Arizona competes fund shall be deposited in the university capital improvement lease‑to-own and bond fund established by section 15‑1682.03, up to a maximum of eighty percent of the total annual payments of lease-to-own and bond agreements entered into by the Arizona board of regents.

G. All monies remaining in the state lottery fund after the appropriations and deposits authorized in this section shall be deposited in the state general fund.

H. Except for monies expended for debt service of revenue bonds as provided in subsection A of this section, monies expended under subsection A of this section are subject to legislative appropriation.

I. The commission shall transfer monies prescribed in this section on a quarterly basis. END_STATUTE

Sec. 2. Title 41, chapter 3, Arizona Revised Statutes, is amended by adding article 1, to read:

ARTICLE 1. ARIZONA STATE PARKS BOARD HERITAGE FUND

START_STATUTE41-501. Definitions

In this article, unless the context otherwise requires:

1. "Environmental education" means educational processes, programs and activities that are specifically designed to enhance student acquisition of knowledge of scientific and economic principles, concepts and facts as they relate to environmental topics and issues and that are taught in an unbiased, fair and balanced manner.

2. "Fund" means the Arizona state parks board heritage fund established by section 41-502.

3. "Historic preservation" means archaeological or historic properties that are listed on or eligible for listing on the Arizona register of historic places and that require funding for easements, stabilization, rehabilitation, education and preservation program development, reconstruction, restoration, interpretive development, acquisition and maintenance.

4. "Natural areas" means parcels of land or water that contain examples of unique natural terrestrial or aquatic ecosystems, rare species of plants and animals or unusual or outstanding geologic or hydrologic features.

5. "Trails" means those trails for nonmotorized use that are nominated for inclusion in the state trails system, including urban, cross-state, recreation, interpretive or historic trails. END_STATUTE

START_STATUTE41-502. Arizona state parks board heritage fund

A. The Arizona state parks board heritage fund is established consisting of monies deposited from the state lottery fund pursuant to section 5‑572 and interest earned on those monies.

B. The fund shall be administered by the Arizona state parks board. Monies in the fund are not subject to legislative appropriation. Expenditures from the fund are not subject to additional approval notwithstanding section 41‑511.05 or 41‑511.11 or any other law to the contrary. Monies received pursuant to section 5‑572 shall be deposited directly with the Arizona state parks board heritage fund. On notice from the Arizona state parks board, the state treasurer shall invest and divest monies in the fund as provided by section 35‑313, and monies earned from investment shall be credited to the fund.

C. The Arizona state parks board may not use its power of eminent domain under section 41‑511.06 to acquire property to be paid for with monies from the Arizona state parks board heritage fund.

D. The Arizona state parks board shall spend all monies in the Arizona state parks board heritage fund only for the purposes of and in the percentages set forth in this article. Monies in the fund do not revert to the state general fund and are exempt from the provisions of section 35‑190 relating to lapsing of appropriations. END_STATUTE

START_STATUTE41-503. Expenditures from fund; purpose and amounts; report

A. The Arizona state parks board shall spend monies in the Arizona state parks board heritage fund as follows:

1. Five percent on local, regional and state trails.

2. Thirty-five percent on local, regional or state parks, for outdoor recreation and open space.

3. Seventeen percent on acquisition of natural areas.

4. Four percent on maintenance, operation and management of natural areas administered by the Arizona state parks board.

5. Seventeen percent on local, regional and state historic preservation projects. The Arizona state parks board through the state historic preservation officer shall administer monies provided under this paragraph.

6. Seventeen percent on state park acquisition or development.

7. Five percent on environmental education.

B. Expenditures of fund monies that are allocated pursuant to subsection a, paragraphs 1 and 2 of this section are subject to the review of the Arizona outdoor recreation coordinating commission pursuant to section 41-511.25. Fund monies that are allocated pursuant to subsection A, paragraphs 1 and 2 of this section shall be available as matching funds.

C. An entity receiving monies under subsection A, paragraphs 1 and 2 of this section may not receive more than twenty percent of the monies available in any fiscal year.

D. All monies earned as interest on monies received pursuant to section 5‑572 shall be spent only in the percentages and for the purposes described in subsections A through C of this section or for costs of administering the fund in amounts as determined by the Arizona state parks board.

E. On or before June 30 of the following fiscal year the Arizona state parks board shall submit an annual report to the president of the senate, the speaker of the house of representatives and the chairpersons of the senate natural resources and energy committee and the house of representatives natural resources, energy and water committee, or their successor committees, and shall provide a copy of this report to the secretary of state. The annual report shall include information on the following:

1. The amount of monies spent or encumbered in the fund during the preceding fiscal year and a summary of the projects, activities and expenditures relating to:

(a) Local, regional and state trails.

(b) Local, regional or state parks for outdoor recreation and open space.

(d) Local, regional and state historic preservation projects.

(e) State park acquisition and development.

(f) Environmental education.

2. The number and location of parcels of property acquired during the preceding fiscal year.

3. For personal and real properties acquired with fund monies during the preceding fiscal year, the amount of property tax revenue paid to each taxing jurisdiction during the last full tax year before acquisition.

4. The amount of money spent from the fund during the preceding fiscal year for employee personal services.

5. The number of full-time employees who are employed in the preceding fiscal year in connection with property acquisition, including survey, appraisal and other related activities. END_STATUTE

START_STATUTE41-504. Performance audit

The auditor general shall conduct a performance audit, as defined in section 41‑1278, of the programs and expenditures pursuant to this article of the fund at the same time any agency performance audit of the Arizona state parks board is conducted. The auditor general shall submit copies of the performance audit to the president of the senate, the speaker of the house of representatives and the chairpersons of the senate natural resources and energy committee and the house of representatives natural resources, energy and water committee, or their successor committees. END_STATUTE