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HB 4142

2026-2027; commerce.

57th Legislature - Second Regular Session Introduced by Michael Carbone and 4 co-sponsors

HB 4142 removes ongoing state lottery fund distributions to the Arizona Competes Fund, reallocating those funds to other uses under the existing lottery framework.

Transmit to Governor
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Bill Summary · HB 4142

Summary of HB 4142 (57th Legislature, 2nd Regular Session, Arizona)

Title

HB 4142 relates to commerce and amends provisions governing the use of monies in the state lottery fund.

Purpose and Intent

  • The bill primarily eliminates distributions from the state lottery fund to the Arizona Competes Fund.
  • It makes a conforming change to reflect this removal and clarifies related administrative and funding provisions tied to the FY 2027 budget process.

Key Provisions and Changes

  1. Elimination of Arizona Competes Fund distributions (Sec. 1)

    • Section 5-572 (as amended by Laws 2024, ch. 210, sec. 2) is amended to remove the ongoing transfer of monies from the state lottery fund to the Arizona Competes Fund (the “Arizona Competes Fund” is no longer funded from the lottery)
    • This represents a shift in how lottery proceeds are allocated, specifically removing a source of funding for the Competes Fund.

  2. Conforming and Repeal Provisions (Sec. 2)

    • Repeals Section 5-572, as amended by Laws 2024, ch. 210, sec. 3, effectively removing the prior statutory language related to the repealed distributions and ensuring consistency with the new framework.

  3. Other allocations from the state lottery fund (context from Sec. 1)

    • The bill’s text retains the broader structure of existing allocations from the state lottery fund to various programs and agencies, subject to the current statute’s sequencing (operating costs, debt service, and post-debt allocations to programs such as the Healthy Families program, health-related initiatives, and other specified uses).
    • Section 5-572 previously prescribed a waterfall of allocations after debt service, including:
      • Contributions to the Arizona Game and Fish Heritage Fund
      • Funding to the Department of Child Safety for healthy families
      • Funding to the Arizona Board of Regents for the Area Health Education System
      • Teen pregnancy prevention programs, Health Start, disease control research, WIC-related funding
      • Economic Security for homeless shelters
      • Contributions to the Arizona Competes Fund
      • The University capital improvement lease-to-own and bond fund (up to 80% of lease-to-own and bond payments)
      • Any remaining balance goes to the General Fund
    • The bill maintains the general framework for how remaining lottery funds are allocated if funds are available, but notably removes the Competes Fund allocation.

Who/What is Affected

  • Arizona Competes Fund: The primary policy impact is that it will no longer receive annual distributions from the state lottery fund.
  • State Lottery Fund allocations: Other statutory allocations and the general fund transfer structure remain in place, subject to the bill’s amendments and annual GDP deflator adjustments noted in existing statute.
  • State agencies and programs: Programs listed in the prior 5-572 allocations (Healthy Families, Area Health Education System, teenage pregnancy prevention, Health Start, disease research, WIC-related funding, homeless shelters, etc.) could see changes only insofar as overall lottery fund totals shift away from the Competes Fund to other uses or the General Fund.

Procedural and Timeline Aspects

  • Effective date: The bill amends and repeals specific sections of the Arizona Revised Statutes; typically, such changes become effective on the date of enactment or a specified effective date within the bill. The text provided does not specify an explicit date beyond the session context.
  • Budget context: The accompanying briefing notes indicate the bill is tied to the FY 2027 budget process and is intended to implement budget-related statutory reconciliations.

Additional Notes

  • The bill’s sponsor group includes Representatives Livingston, Carbone, Carter N, Montenegro, and Willoughby, with House Appropriations involvement.
  • The accompanying summary indicates the primary action is budgetary consolidation by removing the lottery fund transfer to the Arizona Competes Fund.

If you’d like, I can compare this to current law (pre-HB 4142) to show exact dollar-by-dollar differences and provide a side-by-side impact assessment for each affected program.

Compiled from official sources — confirm details with the bill’s official record.

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