5-522. Use of monies in state lottery fund; report

(Caution: 1998 Prop. 105 may apply)

A. The monies in the state lottery fund shall be expended only for the following purposes and in the order provided:

1. For the expenses of the commission incurred in carrying out its powers and duties and in the operation of the lottery.

2. For payment to the commerce and economic development commission fund established by section 41-1505.10 of not less than twenty-one and one-half per cent of the revenues received from the sale of two special lottery games conducted for the benefit of economic development.

3. Except as provided in subsection F of this section, for payment to the local transportation assistance fund established by section 28-8101 of not less than nine million dollars, increasing each year that total revenues to the state lottery fund increase up to a maximum of eighteen million dollars each fiscal year, except that payments pursuant to this paragraph shall not increase by more than ten per cent per year.

B. Of the monies remaining in the state lottery fund after the appropriations authorized in subsection A of this section, up to a maximum of twenty-three million dollars each fiscal year shall be deposited in the local transportation assistance fund established by section 28-8101 and up to a maximum of seven million six hundred fifty thousand dollars each fiscal year shall be deposited in the county assistance fund established by section 41-175. Monies distributed pursuant to this subsection shall be in addition to monies distributed pursuant to subsection A, paragraph 3 of this section.

C. Notwithstanding subsection B of this section, if the state lottery director determines at the beginning of any fiscal year that monies available to cities, towns and counties under this section may not equal thirty million six hundred fifty thousand dollars, the director shall not authorize deposits to the county assistance fund until the deposits to the local transportation assistance fund equal twenty-three million dollars.

D. Of the monies remaining in the state lottery fund each fiscal year after appropriations and deposits authorized in subsections A, B and C of this section, ten million dollars shall be deposited in the Arizona state parks board heritage fund established by section 41-502 and ten million dollars shall be deposited in the Arizona game and fish commission heritage fund established by section 17-297.

E. Of the monies remaining in the state lottery fund each fiscal year after appropriations and deposits authorized in subsections A, B, C and D of this section, and appropriations and deposits to the local transportation assistance fund authorized by this section, five million dollars shall be allocated to the department of economic security for the healthy families program established by section 8-701, four million dollars shall be allocated to the Arizona board of regents for the Arizona area health education system established by section 15-1643, three million dollars 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 shall be allocated to the department of health services for the health start program established by section 36-697, two million dollars shall be deposited in the disease control research fund established by section 36-274 and one million dollars 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.

F. Notwithstanding subsection A, paragraph 3 of this section, if the state lottery director determines that monies available to the state general fund may not equal thirty-one million dollars in a fiscal year, the director shall not authorize deposits to the local transportation assistance fund pursuant to subsection A, paragraph 3 of this section until the deposits to the state general fund equal thirty-one million dollars in a fiscal year.

G. Of the monies remaining in the state lottery fund each fiscal year after appropriations and deposits authorized in subsections A through F of this section, one million dollars 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 and the director of the Arizona state library, archives and public records.

H. Beginning in fiscal year 2009-2010, of the monies remaining in the state lottery fund each fiscal year after appropriations and deposits authorized in subsections A through G of this section, and after a total of at least forty-six million four hundred ninety thousand dollars has been deposited in the state general fund, the remaining balance in the state lottery 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 per cent of the total annual payments of lease-to-own and bond agreements entered into by the Arizona board of regents.

I. Beginning in fiscal year 2009-2010, of the monies remaining in the state lottery fund each fiscal year after appropriations and deposits authorized in subsections A through H of this section, ten million dollars or the remaining balance in the fund, whichever is less, is appropriated to the department of environmental quality's water supply development fund line item.

J. Beginning in fiscal year 2009-2010, of the monies remaining in the state lottery fund each fiscal year after appropriations and deposits authorized in subsections A through I of this section, three million dollars or the remaining balance in the fund, whichever is less, is appropriated to the community protection initiative fund established by section 37-641.

K. 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.

L. Except for monies expended for prizes as provided in section 5-504, subsection G and section 41-1505.10, monies expended under subsection A of this section are subject to legislative appropriation.