AZ HB2701

Amends section 5-572 to redirect $10,000,000 annually from the state lottery fund to the Arizona state parks board heritage fund (established by new section 41-502), in addition to existing allocations to other programs.

Creates the Arizona state parks heritage fund to receive lottery revenues and be administered by the Arizona state parks board, with monies continuously appropriated and exempt from lapsing provisions.

Requires fund monies to be spent as follows: 50% for local/regional/state parks outdoor recreation and open space; 30% for historic preservation projects; 10% for nonmotorized trails; and 10% for outdoor and environmental education.

Prohibits any single entity from receiving more than 20% of available monies in each category per fiscal year and prohibits use of fund monies for property acquisition.

Requires the Arizona state parks board to submit annual reports by December 31 to the legislature detailing fund expenditures and activities, and mandates the auditor general conduct performance audits of the fund.