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ARIZONA STATE SENATE
Fifty-Sixth Legislature, First Regular Session
state parks; lottery; heritage fund
Requires $10,000,000 to be deposited into the Arizona State Parks Heritage Fund (Heritage Fund) annually from the State Lottery Fund (Lottery Fund) after preceding distributions are satisfied.
Background
The Lottery
Fund consists of all revenues received from the sale of lottery tickets or
shares, any fees collected by the Arizona State Lottery Commission (Commission)
and all other monies credited or transferred from any other fund or source,
with the exception of monies apportioned for the payment of prizes (A.R.S.
§ 5-571). Monies in the Lottery Fund are first used to satisfy state
lottery revenue bond debt service obligations and Commission expenses.
Afterwards, monies in the Lottery Fund are distributed in the following order:
1) $84,150,000 to the state General Fund (state GF); 2) $10,000,000 to the
Arizona Game and Fish Commission Heritage Fund;
3) $5,000,000 to the Arizona Department of Child Safety for the Healthy
Families Program;
4) $4,000,000 to the Arizona Board of Regents (ABOR) for the Arizona Area
Health Education System; 5) $3,000,000 to the Arizona Department of Health
Services (DHS) to fund the Teenage Pregnancy Prevention Program; 6) $2,000,000
to DHS for the Health Start Program; 7) $2,000,000 to the Disease Control
Research Fund; 8) $1,000,000 to DHS for the Federal Woman, Infants and Children
Food Program; 9) up to $1,000,000 to the Arizona Department of Economic
Security for grants to nonprofit organizations for homeless emergency and
transition shelters and related support services; 10) $15,490,000 to the state
GF; 11) $3,500,000 to the Arizona Competes Fund; and 12) up to 80 percent of
the of the total annual payments of lease-to-own and bond agreements entered
into by ABOR. After all preceding distributions are satisfied, all monies
remaining in the Lottery Fund are deposited into the state GF (A.R.S.
§ 5-572). The Joint Legislative Budget Committee (JLBC) FY 2024 Baseline
for the Non-Appropriated portion of the Lottery Fund is $966,923,700 (JLBC).
The seven-member Arizona State Parks Board (ASPB) administers the Heritage Fund, which consists of legislative appropriations, grants and donations (A.R.S. § 41-502). Monies in the Heritage Fund are used as follows: 1) 50 percent on local, regional or state parks for outdoor recreation and open space development, restoration or renovation; 2) 30 percent on local, regional or state historic preservation projects; 3) 10 percent for local nonmotorized trails; and 4) 10 percent on outdoor and environmental education (A.R.S. § 41-503). The JLBC FY 2024 Baseline for the Heritage Fund is $0 (JLBC). In FY 2023, $2,500,000 was appropriated from the state GF to the Heritage Fund (JLBC).
S.B. 1224 transfers $10,000,000 annually from the Lottery Fund to the Heritage Fund, if the state GF receives the $84,150,000 distribution from the Lottery Fund. If depositing monies into the Heritage Fund reduces the available monies that are otherwise directed to the state GF in succeeding distributions, there may be a fiscal impact to the state GF.
Provisions
1. Requires $10,000,000, adjusted annually according to changes in the GDP price deflator, to be deposited into the Heritage Fund annually from monies remaining in the Lottery Fund after preceding distribution requirements are satisfied.
2. Prohibits Lottery Fund monies from being deposited into the Heritage Fund unless the $84,150,000 distribution is deposited into the state GF.
3. Adds, to the Heritage Fund sources, monies deposited from the Lottery Fund and interest earned on those monies.
4. Exempts Lottery Fund monies deposited into the Heritage Fund from lapsing.
5. Exempts the ASPB from rulemaking requirements for one year after the general effective date.
6. Makes technical changes.
7. Becomes effective on the general effective date.
Prepared by Senate Research
January 30, 2023
RA/FB/slp