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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
equine economic improvement fund
Purpose
Establishes the Equine Economic Improvement Fund (Fund) consisting of monies deposited from the Fantasy Sports Contest Fund, the Event Wagering Fund or from any other source.
Background
The Arizona Department of Gaming (ADG) must collect a monthly fee from the adjusted revenues of fantasy sports contests. The Fantasy Sports Contest Fund consists of monies deposited from outlined fees or any other source. The ADG must also collect a fee for the privilege of operating event wagering. The Event Wagering Fund consists of monies deposited from adjusted event wagering receipts. By the 25th of each month, 90 percent of the monies deposited in the Event Wagering Fund from the previous month must be transferred to the state General Fund (state GF) (A.R.S. §§ 5-1211; 5-1212 and 5-1318).
The Retired Racehorse Adoption Fund promotes adoption of retired racehorses through financial assistance to nonprofit enterprises whose programs have been found to be in the best interest of the racing industry and Arizona. Balances remaining in the Retired Racehorse Adoption Fund at the end of a fiscal year do not revert to the state GF (A.R.S. §§ 5-104 and 5-113).
The ADG must distribute monies from the Breeder's Award Fund to the breeder or the breeder's heirs, devisees or successors of every winning horse or greyhound to promote, improve and advance the quality of racehorse and greyhound breeding in Arizona. Balances remaining in the Breeder's Award Fund at the end of a fiscal year do not revert to the state GF (A.R.S. § 5-113).
The Arizona Stallion Award Fund, established under the jurisdiction of the ADG, promotes, improves and advances the quality of stallions in Arizona. The ADG must distribute monies from the Arizona Stallion Award Fund to the owner or lessee, or the owner or lessee's heirs, devisees or successors, 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).
There is no anticipated fiscal impact to the state GF associated with this legislation.
Provisions
1. Establishes the Fund consisting of monies deposited from the Fantasy Sports Contest Fund and the Event Wagering Fund or from any other source.
2. Requires the ADG to administer the Fund.
3. Requires the ADG, by August 1 of each year, to distribute monies in the Fund as follows:
a) $25,000 to the Retired Racehorse Adoption Fund; and
b) any remaining monies in the Fund after distribution to a recognized nonprofit horsemen's organization that has represented the horsemen participating in racing meetings since 1988.
4. Requires five percent of the annual revenue of the Fantasy Sports Contest Fund and five percent of the of the monthly revenue of the Event Wagering Fund to be deposited into the Arizona Breeders' Award Fund.
5. Distributes $25,000 annually from the Arizona Breeders' Award Fund to the Retired Racehorse Adoption Fund.
6. Requires five percent of the annual revenue of the Fantasy Sports Contest Fund to be deposited annually in the Arizona Stallion Award Fund.
7. Requires the ADG to distribute $25,000 annually from the Arizona Stallion Award Fund to the Retired Racehorse Adoption Fund.
8. Requires the ADG to annually transfer five percent of the annual revenue deposited in the Fantasy Sports Contest Fund to each of the following:
a) the Arizona Breeders' Award Fund;
b) the Arizona Stallion Award Fund; and
c) the Equine Economic Improvement Fund.
9. Requires, by the 25th of each month:
a) 75 percent, rather than 90 percent, of the monies deposited in the Event Wagering Fund from the previous month to be transferred to the state GF;
b) 10 percent of the monies deposited in the Event Wagering Fund from the previous month to be transferred to the Fund; and
c) five percent of the monies deposited in the Event Wagering Fund from the previous month to be transferred to the Arizona Breeders' Award Fund.
10. Stipulates that monies in the Fund are continuously appropriated and are exempt from lapsing.
11. Makes technical and conforming changes.
12. Becomes effective on the general effective date.
Prepared by Senate Research
January 31, 2025
SB/SN/slp