AZ HB2538

Requires the state treasurer to distribute transaction privilege tax (TPT) revenues collected on Indian reservations to qualifying Indian tribes, with distribution percentages increasing over time: 5% in fiscal year 2019-2020, 10% in 2020-2021, and 15% in subsequent fiscal years.

Qualifying Indian tribes must enter into a compact with the state (signed by the governor) before receiving any distributions, establishing requirements for use of funds and accountability measures.

Distributed monies must be used primarily for economic development, infrastructure development, and public safety purposes for the tribe, though they may be supplemented with funding from other sources.

Requires audits by the auditor general of how distributed monies are used, with audit results submitted to the joint legislative budget committee, and mandates annual submission of plans to the department of administration.

Defines "qualifying Indian tribe" as any federally recognized Indian nation, tribe, band, or community holding trust lands in Arizona.