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HB4099 • 2026

child care; state lottery fund

HB4099 - child care; state lottery fund

Children Education
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Alma Hernandez, Consuelo Hernandez, Lydia Hernandez
Last action
2026-02-12
Official status
House second read
Effective date
Not listed

Plain English Breakdown

The official bill text contains blank lines where specific dollar amounts should be listed for the Arizona Working Parents Support Fund.

HB4099: Distributing State Lottery Money for Child Care and Other Programs

This bill directs how leftover state lottery money is shared among specific programs, including a new fund for working parents, health education, wildlife conservation, homeless shelters, and university projects.

What This Bill Does

  • Sets aside $10 million annually for the Arizona Game and Fish Commission Heritage Fund after paying bond debts and operating costs.
  • Allocates money to several programs including child safety, area health education, teenage pregnancy prevention, Health Start, disease control research, and food assistance.
  • Deposits an unspecified amount into the new Arizona Working Parents Support Fund for child care support.
  • Adjusts funding amounts each year based on changes in the GDP price deflator to account for inflation.
  • Reduces payments to all programs equally if there is not enough lottery money available after other deposits are made.
  • Requires that at least $84,150,000 be deposited into the state general fund before any money goes to the wildlife or working parents funds.
  • Provides up to $1 million for grants to nonprofit organizations running homeless emergency and transitional shelters.
  • Deposits $1.75 million into the Arizona Competes Fund if at least $99,640,000 has been deposited in the state general fund that year.
  • Sends any remaining lottery money after all other deposits to university capital improvement funds or back to the state general fund.

Who It Names or Affects

  • The Arizona Working Parents Support Fund
  • State agencies managing health, safety, and education programs
  • Nonprofit organizations providing homeless shelters
  • Universities receiving funds for building projects

Terms To Know

Arizona Working Parents Support Fund
A new account created by this bill to hold lottery money intended for child care support.
Pro rata basis
Reducing every program's share of funding by the same percentage if there is not enough total money available.
GDP price deflator
A number used to measure how prices change over time, which adjusts the dollar amounts in this bill each year.

Limits and Unknowns

  • The exact amount of money for child care is not written as a specific number in the text provided.
  • Funding stops if lottery revenue does not reach $84,150,000 for the general fund first.

Bill History

  1. 2026-02-12 House

    House second read

  2. 2026-02-11 House

    House Rules: None

  3. 2026-02-11 House

    House Appropriations: None

  4. 2026-02-11 House

    House Health & Human Services: None

  5. 2026-02-11 House

    House first read

Official Summary Text

HB4099 - child care; state lottery fund

Current Bill Text

Read the full stored bill text
HB4099 - 572R - I Ver

REFERENCE TITLE:
child care; state lottery fund

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 4099

Introduced by

Representatives
Hernandez A: Hernandez C, Hernandez L

AN
ACT

amending section 5-572, arizona
revised statutes, as amended by laws 2024, chapter 210, section 2; amending
section 5-572, arizona revised statutes, as amended by laws 2024, chapter
210, section 3; Amending title 46, chapter 7, article 1, arizona revised
statutes, by adding section 46-812; relating to child care.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 5-572, Arizona Revised
Statutes, as amended by Laws 2024, chapter 210, section 2, is amended to read:

START_STATUTE
5-572.

Use of monies in state lottery fund; report

A. If there are any bonds or bond related
obligations payable from the state lottery revenue bond debt service fund, the
state lottery revenue bond debt service fund shall be secured by a first lien
on the monies in the state lottery fund after the payment of operating costs of
the lottery, as prescribed in section 5-555, subsection A, paragraph 1,
until the state lottery bond debt service fund contains sufficient monies to
meet all the requirements for the current period as required by the bond
documents. Debt service for revenue bonds issued pursuant to this
chapter shall be paid first from monies that would have otherwise been
deposited pursuant to this section in the state general fund. After
the requirements for the current period have been satisfied as required by the
bond documents, the monies in the state lottery fund shall be expended for the
expenses of the commission incurred in carrying out its powers and duties and
in the operation of the lottery.

B. Of the monies remaining in the state lottery fund
each fiscal year after appropriations and deposits authorized in subsection A
of this section, $10,000,000 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,
$_______________ shall be deposited in
the Arizona working parents support fund established by section 46-812,
$5,000,000
shall be allocated to the department of child safety for the healthy families
program established by section 8-481, $4,000,000 shall be allocated to
the Arizona board of regents for the Arizona area health education system
established by section 15-1643, $3,000,000 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, $2,000,000 shall be
allocated to the department of health services for the health start program
established by section 36-697, $2,000,000 shall be deposited in the
disease control research fund established by section 36-274 and
$1,000,000 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 $84,150,000 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
or the Arizona working parents support fund pursuant to subsection C
of this section
until the deposits to the state general fund equal
$84,150,000 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, $1,000,000 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. 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 $99,640,000 has
been deposited in the state general fund, $1,750,000 shall be deposited in the
Arizona competes fund established by section 41-1545.01. The
balance in the state lottery fund remaining after deposits into the Arizona
competes 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 percent 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 debt service of
revenue bonds as provided in subsection A of this section, monies expended
under subsection A of this section are subject to legislative appropriation.

I. The commission shall transfer monies prescribed
in this section on a quarterly basis.
END_STATUTE

Sec. 2. Section 5-572, Arizona Revised
Statutes, as amended by Laws 2024, chapter 210, section 3, is amended to read:

START_STATUTE
5-572.

Use of monies in state lottery fund; report

A. If there are any bonds or bond related
obligations payable from the state lottery revenue bond debt service fund, the
state lottery revenue bond debt service fund shall be secured by a first lien
on the monies in the state lottery fund after the payment of operating costs of
the lottery, as prescribed in section 5-555, subsection A, paragraph 1,
until the state lottery bond debt service fund contains sufficient monies to
meet all the requirements for the current period as required by the bond
documents. Debt service for revenue bonds issued pursuant to this
chapter shall be paid first from monies that would have otherwise been
deposited pursuant to this section in the state general fund. After
the requirements for the current period have been satisfied as required by the
bond documents, the monies in the state lottery fund shall be expended for the
expenses of the commission incurred in carrying out its powers and duties and
in the operation of the lottery.

B. Of the monies remaining in the state lottery fund
each fiscal year after appropriations and deposits authorized in subsection A
of this section, $10,000,000 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,
$__________________ shall be deposited in
the Arizona working parents support fund established by section 46-812,
$5,000,000
shall be allocated to the department of child safety for the healthy families
program established by section 8-481, $4,000,000 shall be allocated to
the Arizona board of regents for the Arizona area health education system
established by section 15-1643, $3,000,000 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, $2,000,000 shall be
allocated to the department of health services for the health start program
established by section 36-697, $2,000,000 shall be deposited in the
disease control research fund established by section 36-274 and
$1,000,000 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 $84,150,000 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
or the Arizona working parents support fund pursuant to subsection C
of this section
until the deposits to the state general fund equal
$84,150,000 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, $1,000,000 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. 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 $99,640,000 has
been deposited in the state general fund, $3,500,000 shall be deposited in the
Arizona competes fund established by section 41-1545.01. The
balance in the state lottery fund remaining after deposits into the Arizona
competes 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 percent 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 debt service of
revenue bonds as provided in subsection A of this section, monies expended
under subsection A of this section are subject to legislative appropriation.

I. The commission shall transfer monies prescribed
in this section on a quarterly basis.
END_STATUTE

Sec. 3. Title 46, chapter 7, article 1, Arizona
Revised Statutes, is amended by adding section 46-812, to read:

START_STATUTE
46-812.

Arizona working parents support fund; Arizona working parents
child care program; rules; report; definitions

A. The arizona working parents
support fund is established consisting of monies received from the state
lottery fund as prescribed in section 5-572, subsection C.� The
department shall administer the fund.� Monies in the fund are continuously
appropriated and are exempt from the provisions of section 35-190
relating to lapsing of appropriations.�

B. The department shall use the
monies in the fund to support the Arizona working parents child care program
that is established in the department to provide child care to eligible
families.� The department shall allow all eligible parents to participate in
the program without paying fees and regardless of income. The
department shall pay participating child care providers directly for services
provided to eligible children rather than reimbursing eligible families. The
department shall set the rates for child care based on a biennial market rate
study that is designed to cover the true cost of quality care, including wages,
benefits and operation expenses. The department may adopt tiered reimbursement
rates to incentivize quality of child care, extended child care hours and
infant and toddler care.

C. The department shall adopt rules
that include all of the following:

1. The eligibility requirements and
verification procedures.

2. The requirements for participating
Child care providers.

3. The type of Payment systems to be
used, including fraud prevention.

D. On or before June 30, 2027, the
department shall submit an annual report to the governor, the president of the
senate and the speaker of the house of representatives and shall provide a copy
of this report to the secretary of state. The report must include
all of the following:

1. The number of eligible children
and eligible families who benefited from the program.

2. The number of child care providers
that participated in the program, separated by geographic area.

3. The total expenditure amount,
including any fund balance.

4. How the program impacted the
workforce rates for working parents.

E. The department may implement the
program in phases based on available funding and prioritize the program based
on the following:

1. Infants and toddlers.

2. Parents without child care.

3. Parents who work nontraditional
hours and who are in need of child care.

4. Parents who reside is rural areas
and who are in need of child care.

F. For the purposes of this section:

1. "Eligible children"
means children from infancy until entry into kindergarten.

2. "Eligible family" means
a parent or legal guardian who:

(
a
) Is
currently employed or self-employed, is enrolled in job training,
education or workforce development program or is engaged in a job search.

(
b
) Resides in
this state.

3. "Program" means the
Arizona working parents child care program.
END_STATUTE

Sec. 4.
Effective date

Section 5-572, Arizona Revised
Statutes, as amended by Laws 2024, chapter 210, section 3 and this act, is
effective from and after June 30, 2027.