ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

First Regular Session

Senate: APPROP DP 7-2-1-0 | 3rd Read 17-12-1-0

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

SB 1736: 2025-2026; amusements

Sponsor: Senator Kavanagh (with permission of committee on Rules), LD 3

Caucus & COW

Overview

Contains provisions relating to amusements needed to implement the FY 2026 budget.

History

The Arizona Legislature adopts a budget for each fiscal year (FY) that contains general appropriations. Article IV, Section 20, Part 2 of the Constitution of Arizona requires the General Appropriations Act (feed bill) to contain only appropriations for the different state departments, state institutions, public schools and interest on public debt. Statutory changes necessary to reconcile the appropriations made in the feed bill and other changes are drafted into separate budget bills. These bills are prepared according to subject area.

Provisions

1.   Directs boxing and mixed martial arts licensing fees be deposited in the Unarmed Combat Subaccount in the Racing Regulation Fund, rather than directly into the Racing Regulation Fund. (Sec. 3)

2.   Continues for FY 2026, as session law, to set the Arizona Department of Gaming's (ADG) regulatory assessment to 0.5% of the amounts wagered on live and simulcast races from in-state and out-of-state wagering handled by a commercial racing permittee. (Sec. 4)

3.   Continues to authorize, as session law, ADG, for race meetings in 2025 and 2026, to allow a first-time starter horse to race as long as the horse has gate approval and at least two timed workouts. (Sec. 5)

4.   Requires one of the timed workouts to be an out-of-the-gate workout that is conducted within 60 days of the race in which the horse is entered. (Sec. 5)

5.   Repeals the gate approval authorization January 1, 2027. (Sec. 5)

6.   Authorizes, as session law, a liquor producer or wholesaler, through June 30, 2027, to sponsor and provide advertising to a licensed on-sale retailer in connection with a concert that is held at a temporary extension of the on-sale retailer's licensed premises if the on-sale retailer's temporarily extended premises meets both of the following:

a)   has an occupancy of more than 1,000 persons; and

b)   is located adjacent to a multipurpose facility. (Sec. 6)

7.   Repeals the sponsorship and advertising authorization on January 1, 2028. (Sec. 6)

8.   Makes conforming changes. (Sec. 1, 2)

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12.                    SB 1736

13.  Initials PB           Page 0 Caucus & COW

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