ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fourth Legislature

Second Regular Session

House: LAG DP 5-0-0-2-0-0 | APPROP DPA 9-2-0-0-0-0

HB 2723: county fair racing; council; appropriations

Sponsor:  Representative Dunn, LD 13

Caucus & COW

Overview

Establishes the Arizona Quarter Horse Racing Circuit Coordinating Council (Council), the Arizona Quarter Horse Racing Circuit Fund (Fund) and a formula for distributing Fund monies and appropriates $1,000,000 from the state General Fund to the Fund in FYs 2021-2023.

History

The Arizona Department of Gaming (Department) regulates pari-mutuel horse racing and wagering. Pari-mutuel wagering is a form of wagering on an event outcome in which all wagers are pooled and held by a body for distribution of the total amount, less deductions authorized by law, to holders of tickets on the winning contestants (A.R.S. § 5-101(23)).

The Department has currently three funds which are intended to help county fair racing:

1)    The Arizona County Fairs Racing Betterment Fund provides monies to county fair association or county fair racing association of each county conducting a county fair racing meeting based on how much the Department deems necessary to promote these meetings. A county fair association must provide annual certification in the Department-required form to support expenditures made from this fund (A.R.S. § 5-113(B)); and

2)    The County Fair Racing Fund provides monies for administering county fair racing (A.R.S. § 5-113(I)).

3)    The Rural County Fair Racing Fund, which was created in 2018, provides matching grants to counties with less than 800,000 people that operate county fair racing. A county is not eligible for a grant unless it agrees to contribute revenues for county fair racing that amount to at least 50% of the grant amount. Grants are capped at $40,000. This fund was appropriated $200,000 in FY 2019. Monies in this fund are continuously appropriated (Laws 2018, Ch. 318, §11).

The Arizona Racing Commission (Commission), which is located within the Department, reviews and approves permits for horse and harness racing. The Commission requires each horse racing permittee to conduct an average of at least two races for quarter horses for each day of racing. However, the Commission can rescind this requirement if the permittee offers acceptable quarter horse races but an honest effort is not being made to fill these races with horseman (A.R.S. § 5-110(B)).

Provisions

Arizona Quarter Horse Racing Circuit Fund

1.    Establishes the Arizona Quarter Horse Racing Circuit Fund (Fund) which would be administered by the Department. (Sec. 6)

2.    Creates the following formula for dispersing Fund monies each fiscal year:

a)    No more than $100,000 on a first-come, first-served basis to a county fair racing association of any county that conducts a county fair racing meeting for capital improvements or purses, provided the county or association matches at least 40% from sources other than the State; and

b)    After making these dispersions, no more than $100,000 to counties or county fair racing association of any county that conducts a county fair racing meeting for operating expenses, soliciting sponsorships, and complying with audit and other financial compliance requirements. (Sec. 6)

3.    Allows the Department to distribute more than $100,000 to the county fair racing association of a county that conducts a county fair racing meeting in FY 2023. (Sec. 9)

4.    Appropriates $1,000,000 annually from the state General Fund to the Fund in FYs 2021-2023. (Sec. 8)

5.    Exempts Fund monies from lapsing until July 1, 2023. (Sec. 6)

Arizona Quarter Horse Racing Circuit Coordinating Council (Sec. 6 and 7)

6.    Establishes the Arizona Quarter House Racing Circuit Coordinating Council (Council) consisting of one member appointed by each county board of supervisors.

7.    Directs the Council to:

a)    Coordinate with each county and county fair racing associations to promote an Arizona quarter horse racing circuit with each participating county fair;

b)    Develop a coordinating racing schedule at participating county fair racing associations beginning with the 2021 racing season;

c)    Advise the Department on creating an application process and awarding a single permit for an Arizona quarter horse racing circuit; and

d)    Advise the Department on allocating Fund monies.

8.    Repeals the Council on July 1, 2023.

County Racing Meeting

9.    ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteRequires a county where a county fair association operated a racing meeting to conduct an audit of the racing meeting. (Sec. 1)

10.  Repeals the requirement that the Director must employ three persons qualified as stewards, and appoint one such person as a chief steward, for each horse or harness racing meeting conducted by a county fair racing association. (Sec. 2)

11.  Directs the Department to establish an applicant process and award a single permit for an Arizona quarter horse racing circuit. (Sec. 3)

12.  Removes the exemption for a county fair racing meeting to pay a percentage of the pari-mutuel pool collected at that meeting to the State. (Sec. 4 and 5).

Miscellaneous

13.  Makes technical and conforming changes. (Sec. 3 and 5)

Amendments

Committee on Appropriations

1.    Deletes all provisions of this act, including the appropriation, except for those related to the Arizona Quarter Horse Racing Circuit Coordinating Council.

2.    Directs this council to:

a)    Coordinate with each county fair racing association to promote an Arizona quarter horse racing circuit in conjunction with each participating county fair racing association.

b)    Develop coordinated racing schedule among no more than six participating county fair racing associations.

3.    Repeals this council on July 1, 2023.

 

 

 

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Initials PAB                 Caucus & COW

 

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