5-522

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

(Caution: 1988 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.

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

C. Of the monies remaining in the state lottery fund each fiscal year after
appropriations and deposits authorized in subsections A and B of 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.

D. If the state lottery director determines that monies available to the state
general fund may not equal eighty million six hundred fifty thousand dollars in a fiscal
year, the director shall not authorize deposits to the Arizona game and fish commission
heritage fund pursuant to subsection B of this section until the deposits to the state
general fund equal eighty million six hundred fifty thousand dollars in a fiscal year.

E. Of the monies remaining in the state lottery fund each fiscal year after
appropriations and deposits authorized in subsections A through D 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.

F. Beginning in fiscal year 2010-2011, of the monies remaining in the state lottery
fund each fiscal year after appropriations and deposits authorized in subsections A
through E of this section, and after a total of at least ninety-six million one hundred
forty 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.

G. 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.

H. 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.