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ARIZONA STATE SENATE
Fifty-Fifth Legislature, First Regular Session
AMENDED
state parks; lottery; heritage fund
Purpose
Requires $1,000,000 in FY 2022, $2,000,000 in FY 2023 and $3,000,000 in FY 2024 and each subsequent fiscal year 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 distribution requirements to the Heritage Fund.
Provisions
1. Requires the following sums to be deposited from the State Lottery Fund to the Heritage Fund annually if sufficient monies are available after preceding distribution requirements are satisfied:
a) $1,000,000 in FY 2022;
b) $2,000,000 in FY 2023; and
c) $3,000,000 in FY 2024 and each subsequent fiscal year.
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. Specifies the allocation to the Heritage Fund is adjusted annually according to changes in the Gross Domestic Product price deflator.
6. Exempts the appropriations from lapsing.
7. Makes technical changes.
8. Becomes effective on the general effective date.
Amendments Adopted by Committee
1. Decreases the deposit from $10,000,000 annually to $1,000,000 in FY 2022, $2,000,000 in FY 2023 and $3,000,000 in FY 24 and each subsequent fiscal year.
2. Specifies the deposit to the Heritage Fund in each fiscal year is adjusted annually for inflation and is exempt from lapsing.
Senate Action
APPROP 2/16/21 DPA 10-0-0
Prepared by Senate Research
February 17, 2021
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