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ARIZONA HOUSE OF REPRESENTATIVESFifty-fifth Legislature First Regular Session |
Senate: APPROP DPA 10-0-0-0 | 3rd Read 28-1-1-0
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SB 1384: state parks; lottery; heritage fund
Sponsor: Senator Shope, LD 8
Caucus & COW
Overview
Appropriates $1 million in fiscal year (FY) 2022, $2 million in FY 2023, and $3 million in FY 2024 and each year thereafter from the State Lottery Fund (SLF) to the Arizona State Parks Heritage Fund if sufficient monies are available after preceding distribution requirements are satisfied.
History
State Lottery Fund
In November 1980, Arizona voters approved Proposition 200, an initiative measure providing for a state lottery to generate revenue for various Arizona programs. Administered by the Arizona State Lottery Commission (Commission), the monies generated consist of revenues received from the sale of lottery tickets or shares, including revenues from drawing games and instant ticket "scratcher" games. These monies are deposited into the SLF and are first used to resolve debt service obligations for state lottery revenue bonds and pay for any Commission expenses. If sufficient monies are available after these distributions have been made, $10 million will be deposited into the Arizona Game and Fish Commission Heritage Fund. However, this deposit will not occur if there is less than $84,150,000 available for deposit to the state General Fund (GF) in that fiscal year (A.R.S. §§ 5-571 and 5-572).
Arizona State Parks Heritage Fund
The Arizona State Parks Heritage Fund was originally created when voters passed Proposition 200 in 1990. This fund annually received $10 million from the SLF at the same priority level and under the same conditions as the Arizona Game and Fish Commission Heritage Fund. The Legislature eliminated the Arizona State Parks Heritage Fund and redirected all of its monies and allocated lottery proceeds to the state General Fund in 2010 (Laws 2010, 7th S.S., Ch. 12, §§ 15 and 45).
Laws 2019, Chapter 304 re-established the fund. It is administered by the Arizona State Parks Board (Board) and consists of legislative appropriations, grants and donations. When notified by the Board, the State Treasurer invests and divests fund monies, and any monies earned are credited to the fund. Monies in the fund are continuously appropriated and exempt from lapsing (A.R.S. § 41-502). However, this fund does not have any dedicated revenue sources and has remained empty since its creation.
The Board, in consultation with the Historical Advisory Commission, creates criteria for using fund monies, establishes a grant application process and reviews and evaluates grant applications. Fund monies must be distributed as follows:
1) 50% to outdoor recreation and open space development, restoration or renovation of local, regional and state parks;
2) 30% on local, regional and state historic preservation projects;
3) 10% on local, regional and state nonmotorized trails; and
4) 10% on outdoor and environmental education.
However, fund monies cannot be used to acquire property (A.R.S § 41-503).
Provisions
1. Appropriates the following amounts from the
SLF to the Arizona State Parks Heritage Fund if monies are available after all
debt service obligation payments have been made, Commission expenses are paid
and $10 million is deposited into the Arizona Game and Fish Heritage Fund: 
a. $1 million in FY 2022;
b. $2 million in FY 2023; and
c. $3 million in FY 2024 and each subsequent fiscal year. (Sec. 1 and 4)
2. Stipulates that the allocation to the Arizona State Parks Heritage Fund is adjusted annually according to changes in the Gross Domestic Product price deflator. (Sec. 1)
3. Prohibits any SLF monies from being deposited into the Arizona State Parks Heritage Fund if less than $84,150,000 is available for the state GF for that fiscal year. (Sec. 1)
4. Specifies that monies deposited into the Arizona State Parks Heritage Fund from the SLF are exempt from lapsing. (Sec. 1)
5. Requires the Arizona State Parks Heritage Fund's allocation to be reduced on a pro rata basis with other state agencies, programs and funds receiving SLF monies if there are insufficient monies in SLF for these allocations. (Sec. 1)
6. Allows the Arizona State Parks Heritage Fund to include monies deposited from SLF and interest earned on those monies. (Sec. 2)
7. Exempts the Board from rulemaking requirements for one year after the effective date of this act. (Sec. 3)
8. Makes technical changes. (Sec. 1 and 2)
Amendment
Committee on Appropriations
1. Delays the appropriations by one fiscal year and increases the appropriations to the following amounts:
a) $3 million in FY 2023;
b) $4 million in FY 2024; and
c) $5 million in FY 2025 and each year thereafter.
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SB 1384
Initials PAB/AG Page 0 Caucus & COW
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