ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

First Regular Session

Senate: NR DP 5-3-0-0 | APPROP DP 6-3-1-0 | 3rd Read 16-11-3-0

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☒ Fiscal Note

SB 1126: equine economic improvement fund

Sponsor: Senator Shope, LD 16

Committee on Land, Agriculture & Rural Affairs

Overview

Outlines revenues that must be deposited into specified funds from the Fantasy Sports Contest Fund and the Event Wagering Fund.

History

The Arizona Breeders' Award Fund (Breeders' Fund) was established to protect the integrity of the racing industry and to promote, improve and advance the quality of racehorse and greyhound breeding in Arizona. The Arizona Department of Gaming (ADG) administers the Breeders' Fund and must distribute monies to the breeder of every winning horse or greyhound foaled or whelped in Arizona (A.R.S. §§ 5-113).

The Arizona Stallion Award Fund (Stallion Fund) was established to promote, improve and advance the quality of stallions in Arizona. ADG administers the Stallion Fund and must distribute monies to the owner or lessee of every Arizona stallion whose certified Arizona bred offspring finishes first, second or third in an eligible race in Arizona (A.R.S. §§ 5-113).

Laws 2021, Chapter 234 established laws governing fantasy sports contests and event wagering.  ADG is responsible for the administration and regulation of fantasy sports contests and event wagering operators.

The Fantasy Sports Contest Fund and the Event Wagering Fund consists of deposits of their respective licensing and privilege fees. ADG may spend up to 10% of each fund's monies on the costs of regulating and enforcing fantasy sports contests and event wagering laws, respectively. Any monies remaining revert to the state General Fund (A.R.S. §§ 5-1212 and 5-1318).

ADG must establish a fee for the privilege of operating fantasy sports contests and event wagering. When determining the fee, ADG must consider the highest percentage of revenue share that an Indian tribe pays in accordance with the tribal-state gaming compact. Fees are due monthly for deposit in the respective fund (A.R.S. § 5-1211).

Provisions

Equine Economic Improvement Fund (Equine Fund)

1.   Establishes the Equine Fund consisting of 5% of the annual revenues of the Fantasy Sports Contest Fund, 10% of the monthly revenues of the Event Wagering Fund and any other sources. (Sec. 2, 3 and 4)

2.   Instructs ADG, by August 1 of each year, to annually distribute Equine Fund monies as follows:

a)   $25,000 to the Retired Racehorse Adoption Fund; and

b)   any remaining monies to a recognized nonprofit horsemen's organization that has represented the horsemen participating in race meetings since 1988. (Sec. 2)

3.   States monies in the Equine Fund are continuously appropriated and exempt from lapsing. (Sec. 2)

Fantasy Sports Contest Fund

4.   Requires ADG to annually transfer 5% of the Fantasy Sports Contest Fund revenues to:

a)   the Breeders' Fund;

b)   the Stallion Fund; and

c) the Equine Fund. (Sec. 1, 2 and 3)

Event Wagering Fund

5.   Instructs ADG to transfer 5% of the Event Wagering Fund monthly revenues to the Breeders' Fund and 10% of the monthly revenues to the Equine Fund. (Sec. 1 and 4)

Retired Racehorse Adoption Fund

6.   Requires ADG to annually distribute $25,000 to the Retired Racehorse Adoption Fund from each of the:

a)   Breeders' Fund;

b)   Stallion Fund; and

c) Equine Fund. (Sec. 1 and 2)

7.   Makes technical and conforming changes. (Sec. 1, 3 and 4)

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11.                    SB 1126

12.  Initials BSR         Page 0 Land, Agriculture & Rural Affairs

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