FOR THIRD READ                                                                                                                          AS VETOED

ARIZONA STATE SENATE

Fifty-Seventh Legislature, First Regular Session

VETOED

FACT SHEET FOR H.B. 2963

amusements; FY2026

Purpose

Makes statutory and session law changes relating to amusements necessary to implement the FY 2026 state budget.

Background

The Arizona Constitution prohibits substantive law from being included in the general appropriations, capital outlay appropriations and supplemental appropriations bills. However, it is often necessary to make statutory and session law changes to effectuate the budget. Thus, separate bills called budget reconciliation bills (BRBs) are introduced to enact these provisions. Because BRBs contain substantive law changes, the Arizona Constitution provides that they become effective on the general effective date, unless an emergency clause is enacted.

H.B. 2963 contains the budget reconciliation provisions for changes relating to amusements.

Provisions

1. Continues to require the Arizona Department of Gaming (ADG), in FY 2026, to establish and collect, in addition to the amounts already authorized, a regulatory assessment from each commercial racing permittee in the amount of 0.5 percent of the amounts wagered, payable from pari-mutuel pools from in-state and out-of-state live and simulcast races.

2. Allows the ADG, for race meetings in the years 2025 and 2026, to grant gate approval of all tested horses within 60 days of the race in which the horse is entered.

3. Requires the ADG amend the administrative code to allow for gate approval of all tested horses within 60 days of the race in which the horse is entered.

4. Repeals the authorization for the ADG to allow gate approval of all tested horses within 60 days of the race in which the horse is entered on January 1, 2027.

5. Becomes effective on the general effective date.

Governor's Veto Message

            The Governor indicates in her veto message that H.B. 2963, and this version of the FY 2026 budget as a whole, does not provide adequate funding for first responder pay raises, childcare, infrastructure, K-12 schools and higher education and removes efforts to combat veteran homelessness. The Governor encourages working in a productive fashion to deliver a bipartisan solution for Arizonans.

House Action Senate Action

APPROP         6/24/25      DP       11-6-0-2             3^rd Read          6/25/25                          16-11-3                     

3^rd Read          6/24/25                  31-25-4

Vetoed by the Governor 6/25/25

Prepared by Senate Research

June 26, 2025

JT/KP/ci