ARIZONA HOUSE OF REPRESENTATIVES Fifty-sixth Legislature First Regular Session
	Senate: APPROP DP 8-2-0-0 | NREW DPA 7-0-0-0 | 3^rd Read 24-5-1-0

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SB1224: state parks; lottery; heritage fund

Sponsor: Senator Shope, LD 16

Committee on Land, Agriculture & Rural Affairs

Overview

Annually appropriates $10,000,000 from the State Lottery Fund to the Arizona State Parks Heritage Fund after appropriations and deposits related to the State Lottery Fund's bond obligations and the Arizona Game and Fish Heritage Fund if at least $84,150,000 of State Lottery Fund monies are available for the state General Fund (GF).

History

Arizona State Parks Heritage Fund

The Arizona State Parks Heritage Fund was originally created when voters passed Proposition 200 in 1990, which allowed this fund to annually receive $10 million from the State Lottery Fund at the same priority and under the same conditions as the Arizona Game and Fish Commission Heritage Fund. The Legislature eliminated the fund and redirected its monies and allocated lottery proceeds to the state GF in 2010 (Laws 2010, 7th S.S., Ch. 12, §§ 15 and 45).

The fund was recreated in 2019 without a dedicated revenue source. Instead, it could receive legislative appropriations, grants and donations (Laws 2019, Chapter 304). It received $5,000,000 in FY 2022 and $2,500,000 in FY 2023 from the state GF(Laws 2021, Chapter 408 and Laws 2022, Chapter 313).

The Arizona State Parks Board and Historical Advisory Commission decide how fund monies will be used as grants for outdoor recreation and open space development, restoration and renovation, historic preservation projects, nonmotorized trails and outdoor and environmental education. However, fund monies cannot be used to acquire property (A.R.S. § 41-503).

The Arizona State Parks Board annually reports on the fund's projects and expenditures and the Arizona Auditor General conducts a performance audit of these programs and expenditures as part of the Arizona State Parks Board's performance audit and sunset review (A.R.S. §§ 41-503 and 41-504). The most recent performance audit found that the fund's FY 2022 grant awards were consistent with statutory requirements.

State Lottery Fund Distributions

The State Lottery Fund consists of all revenues received from the sale of lottery tickets or shares, including any fees charged, revenues from games and all other monies credited or transferred from any other fund, except for monies apportioned to pay prizes (A.R.S. § 5-571). Fund monies are distributed in tiers. Certain distributions have a higher priority than others and some distributions are subject to certain conditions. The tiered distribution system is as follows:

1) Payable bonds or bond related obligations from the State Lottery Fund;

2) $10,000,000 to the Arizona Game and Fish Commission Heritage Fund provided at least $84,150,000 is available for deposit into the state GF;

3) Allocations ranging from $1,000,000 to $5,000,000 to several health and welfare-related entities and programs;

4) $1,000,000 to the Department of Economic Security for distribution to nonprofit organizations for the homeless;

5) $99,640,000 to the state GF;

6) $3,500,000 to the Arizona Competes Fund and

7) Remaining balance to the University Capital Improvement Lease-to-Own and Bond Fund up to 80% of the total annual payments of lease-to-own and bond agreements entered by the Arizona Board of Regents.

The remaining total balance is deposited into the state GF (A.R.S. § 5-572).

Provisions

1. Allocates $10,000,000 from the State Lottery Fund to the Arizona State Parks Heritage Fund in each fiscal year, after appropriations and deposits to bond related obligations for the State Lottery Fund and the Arizona Game and Fish Commission Heritage Fund. (Sec. 1)

2. Stipulates that the $10,000,000 appropriation to the Arizona State Parks Heritage Fund will not occur in a fiscal year in which less than $84,150,000 is available for deposit into the state GF. (Sec. 1)

3. Exempts the Arizona State Parks Board from rulemaking requirements for one year after the effective date of this act. (Sec. 3)

4. Designates the State Lottery Fund and interest earned on monies from the State Lottery Fund as sources of funding for the Arizona State Parks Heritage Fund. (Sec. 2)

5. Makes technical changes. (Sec. 1)

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9.                   SB 1224

10. Initials PAB/AH     Page 0 Land, Agriculture & Rural Affairs

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