State SealARIZONA HOUSE OF REPRESENTATIVES

 

HB 2589: department of gaming omnibus

PRIME SPONSOR: Representative Cook, LD 8

BILL STATUS: House Engrossed

 

Legend: Division – Division of Racing Director – Director of Division of Racing Fund – Racing Regulation Fund RWA – Regulatory Wagering Assessment Amendments – BOLD and Stricken (Committee)

Abstract

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteRelating to the regulation of the horse racing industry.

Provisions

1.       Places the regulation of racing as a Division under the Arizona Department of Gaming (Department).  (Sec. 1)

2.       States the Director position is the Director of the Division, rather than the Department.  (Sec. 2)

3.       Stipulates that at the end of each fiscal year (FY):  the Division may retain up to 20% of the unexpended and unencumbered monies in the Racing Regulation Fund, but excludes the balance of the fund at the end of FY 2018; and, any remaining monies in the Fund must be used to reduce the RWA.  (Sec. 22)

4.       Caps the RWA of pari-mutuel pools in FY 2019 at .5%.  (Sec. 22)

5.       Modifies the Arizona Racing Commission (Commission) by adding an additional member of the horse or harness racing industry and removes the dog racing industry member.  (Sec. 2)

6.       Increases the licensing period from three to five years maximum.  (Sec. 3)

7.       Clarifies the annual racing report is submitted to the Arizona Secretary of State, rather than the Arizona State Library, Archives and public records.  (Sec. 3)

8.       Rewrites and clarifies the Boxing and Mixed Martial Arts provisions of law and places the language into its own separate section of statute, directly under the regulatory authority of the Department.  (Sec. 27)

9.       Contains Session Law as follows:

a.       Confirms the retention of members on the Arizona Racing Commission and authorizes their replacements through governor appointment as terms expire.  (Sec. 31)

 

b.       Exempts the Department from rulemaking for one year after this legislation's effective date to adopt pertinent rules that include a pari-mutuel wager known as Cactus Pick 6.  (Sec. 32)

c.        Establishes the Rural County Fair Racing Fund administered by the Department as follows:

i.         Transfers $200,000 in FY 2019 from the Racing Regulation Fund to the Rural County Fair Racing Fund.  (Sec. 33) (COM)

 

ii.       Directs the Department to set up matching grants for application by counties with a population of less than 800,000 persons if they operate county fair racing.  (Sec. 33)

iii.     Charges the Racing Commission with establishing application requirements, reviewing all applications and distributing grants on a first come, first serve basis.  (Sec. 33)

iv.     Excludes counties unless they agree to contribute county fair revenues equal to at least 50% of the grant amount.  (Sec. 33)

v.       Caps the grant awards for any county to a maximum $40,000 during any FY.  (Sec. 33)

vi.     Repeals the grant program on July 1, 2020 and transfers any unspent/unencumbered monies remaining in the Rural County Fair Racing Fund to the Racing Regulation Fund.  (Sec. 33)

10.   Removes and repeals obsolete language.  (Sec. 2, 3, 5)

11.   Defines terms.  (Sec. 1)

12.   Makes technical and conforming changes.  (Sec. 1-4, 6-30)

Current Law

Arizona Racing Commission

The Arizona Racing Commission consists of five members appointed by the governor, who have been Arizona residents for at least five years before their appointment (A.R.S. § 5-103)

The Arizona Racing Commission's duties include, in part: issuing racing dates; preparing and adopting rules for meetings to protect and promote the safety and welfare of animals participating in racing meets; protecting and promoting the public health and safety during racing and pari-mutuel wagering; conducting hearings on applications for permits and reviewing all applications for capital improvements at racetracks.  (A.R.S. § 5-104)

Arizona State Boxing and Mixed Martial Arts Commission

Laws 2015, Chapter 19, placed the Arizona State Boxing and Mixed Martial Arts Commission (Boxing and MMA Commission) under the Department of Gaming, Division of Racing.  Laws 2016, Chapter 22, continued the Boxing and MMA Commission for two years, until July 1, 2018.

The Boxing and MMA Commission consists of three members appointed by the Governor and confirmed by the Senate to serve three year terms (A.R.S. § 5-223).  The Boxing and MMA Commission licenses fighters, promoters, trainers, managers and officials to ensure that all laws and rules are followed (A.R.S. § 5-228).

Additional Information

HB 2170 this session ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note(boxing; mixed martial arts; continuation) continues the Arizona State Boxing and Mixed Martial Arts Commission for eight years until July 1, 2026.

 

 

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Fifty-third Legislature                  HB 2589

Second Regular Session                               Version 3: House Engrossed

 

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