Assigned to APPROP                                                                                                             FOR COMMITTEE

 


 

 

 


ARIZONA STATE SENATE

Fifty-Fifth Legislature, First Regular Session

 

FACT SHEET FOR S.B. 1384

 

state parks; lottery; heritage fund

Purpose

            Requires $10,000,000 to be deposited from the State Lottery Fund to the Arizona State Parks Heritage Fund (Heritage Fund) annually if sufficient monies are available.

Background

            The State Lottery Fund consists of revenues received from the sale of lottery tickets or shares (A.R.S. § 5-571). Monies in the State Lottery Fund are first used to satisfy debt service obligations for state lottery revenue bonds and pay for all Arizona State Lottery Commission expenses. Afterwards, monies in the State 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 Heritage Fund; 3) $5,000,000 to the Department of Child Safety for the Healthy Families Program; 4) $4,000,000 to the Arizona Board of Regents for the Arizona Area Health Education System;
5) $3,000,000 to the Department of Health Services (DHS) for teenage pregnancy prevention programs; 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 Women, Infants and Children Food Program; 9) up to $1,000,000 to the Department of Economic Security for homeless shelters;
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 total annual payments of lease-to-own and bond agreements entered into by the Arizona Board of Regents. After all prior allocations have been met, all monies remaining in the State Lottery Fund are deposited into the state GF (A.R.S. §§
5-534 and 5-572).

            The Arizona State Parks Board administers the Heritage Fund, which consists of legislative appropriations, grants and donations (A.R.S. § 41-502). The monies in the Heritage Fund must be distributed 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 and state historic preservation projects; 3) 10 percent on local, regional and state nonmotorized trails; and 4) 10 percent on outdoor and environmental education (A.R.S. § 41-503). Currently, the Heritage Fund balance is zero (JLBC Baseline).

            All monies remaining in the State Lottery Fund after all required appropriations and deposits are made revert to the state GF. There may be a fiscal impact to the state GF as a result of the $10,000,000 distribution requirement to the Heritage Fund.

Provisions

1.   Requires $10,000,000 to be deposited from the State Lottery Fund to the Heritage Fund annually if sufficient monies are available after preceding distribution requirements are satisfied.

2.   Prohibits the deposit of monies into the Heritage Fund until $84,150,000 is deposited into the state GF from the State Lottery Fund for that fiscal year.

3.   Allows the Heritage Fund to include monies deposited from the State Lottery Fund and interest earned on those monies.

4.   Exempts the Arizona State Parks Board from rulemaking requirements for one year after the effective date of this act.

5.   Makes technical changes.

6.   Becomes effective on the general effective date.

Prepared by Senate Research

February 12, 2021

LMM/DH/kja