SB 1575
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ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
Second Regular Session
Senate: GOV DPA 4-3-1-0 | 3
rd
Read 16-12-2-0
House: GOV DPA 5-4-0-0
SB 1575: racing; boxing; transfer; gaming commission
Sponsor: Senator Borrelli, LD 30
House Engrossed
Overview
Establishes the Arizona Gaming Commission (Commission).
History
The Arizona Racing Commission is established to issue racing dates, prepare and adopt
complete rules to govern racing meetings, conduct hearings on applications for permits and
approve permits and conduct reviews of applications to construct capital improvements at
racetracks (A.R.S. § 5-104).
The Department of Gaming is responsible for certifying prospective gaming employees,
facility support employees, tribal gaming employees, financiers, management contractors,
providers of gaming services and manufacturers and distributors of gaming devices to ensure
individuals or companies are not involved in Indian gaming permitted under the tribal-state
compacts. This department must seek to promote the public welfare and safety and seek to
prevent corrupt influences from infiltrating Indian gaming (A.R.S. § 5-602).
Provisions
1. Removes current specifications regarding tribal-state gaming compacts. (Sec. 2)
2. Establishes the Commission. (Sec. 8)
3. Outlines the following members of the Commission who must be citizens of the United
States and residents of Arizona and appointed pursuant to statute:
a) a licensed certified public accountant that has at least five years of experience in
general accounting, principles and practice of corporate finance, general finance,
gaming or economics;
b) one member with at least five years of experience in investigation, law enforcement
or gaming law;
c) the Director of the Commission;
d) three public members; and
e) three members who have experience in horse racing. (Sec. 8)
4. Instructs the Governor to appoint the Director pursuant to statute. (Sec. 8)
5. Declares that the Director serves at the pleasure of the Governor and is eligible for
compensation pursuant to statute. (Sec. 8)
6. States that the Director and all other employees of the Commission are subject to statute
relating to the State Personnel System. (Sec. 8) SB 1575
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7. Provides that the Director must have at least five years' experience in public or business
administration. (Sec. 8)
8. Prescribes a four-year term for Commission members. (Sec. 8)
9. Allows a Commission member to be removed by:
a) the Governor for cause; or
b) a vote of a majority of the Commission members without cause. (Sec. 8)
10. Requires each Commission member to take the official oath before entering on the
discharge of the appointee's duties. (Sec. 8)
11. Declares that Commission members are eligible to receive compensation pursuant to
statute for each day spent in the discharge of their duties and reimbursement for all
expenses necessarily and properly incurred in attending a meeting of or for the
Commission, including mileage expenses. (Sec. 8)
12. Specifies that a person who has a financial interest, directly or indirectly, in gaming is
not qualified for membership on, appointment to or employment by the Commission. (Sec.
8)
13. Provides that a person who holds elected office in Arizona or any officer or official of a
political party or convention are not qualified for membership on, appointment to or
employment by the Commission. (Sec. 8)
14. Declares that the Commission meets at the discretion of the Director and a majority of
the Commission members constitutes a quorum. (Sec. 8)
15. Prescribes that the Commission must have an office located in Phoenix and allows an
office to be maintained in Tucson. (Sec. 8)
16. Directs a state agency or a political subdivision, upon request of the Commission, to
provide the Commission with its documents, equipment, facilities, personnel and services
to the extent possible without cost to the Commission. (Sec. 8)
17. Requires the Commission to:
a) assume all powers and duties of the Arizona Racing Commission and the Department
of Gaming;
b) enforce all adopted rules related to gaming;
c) ensure the continued growth and success of gaming in Arizona by establishing public
confidence;
d) regulate the activities, association, location and practice relating to the operation of
licensed gaming establishments and the manufacture, sale or distribution of gaming
devices and associated equipment; and
e) license all establishments where gaming is conducted and where gaming devices are
operated to protect the public health, safety, order and general welfare of Arizona
residents. (Sec. 8)
18. Establishes that the employment or financial interest of any relative to the first degree
of consanguinity or affinity to the Director or any other Commission employee in the
gambling industry in Arizona is grounds for dismissal. (Sec. 8)
19. Establishes the Commission Appointment Recommendation Board (Board) that consists
of members appointed by the Governor and confirmed by the Senate. (Sec. 8) SB 1575
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20. Includes, in the Board, one person who is a United States citizen and has been a resident
of Arizona for at least five years from each of the following qualifying groups:
a) one member actively engaged in an organization that has been in existence for at least
five years and operates in the horse and dog racing industry;
b) one member actively engaged in an organization that has been in existence for at least
five years and operates in the event wagering and fantasy sports industry;
c) one member actively engaged in an organization that has been in existence for at least
five years and operates in the tribal gaming industry; and
d) two members who have at least five years of experience in investigations, law
enforcement or gaming law. (Sec. 8)
21. States that Board members serve five-year terms of office. (Sec. 8)
22. Requires a Board member to maintain continuous membership in the organization the
member represented when appointed during the entire term of office. (Sec. 8)
23. Allows the Governor to remove a Board member for inefficiency, conflict of interest,
neglect of duty or misconduct in office and replace the member with an individual from
the same organization. (Sec. 8)
24. Instructs the Governor, if a Board member dies, resigns or is removed from office, to
appoint an individual to fill the vacancy within 30 days from the same organization. (Sec.
8)
25. Specifies the following regarding the Board:
a) three members constitute a quorum;
b) Board meetings must be held at a location determined by the Board;
c) the Board must issue a public notice at least one week before a meeting; and
d) Board members are not eligible for compensation or reimbursement of expenses. (Sec.
8)
26. Outlines how the Board assists the Governor by interviewing, evaluating and
recommending candidates to fill vacancies on the Commission. (Sec. 8)
27. Directs the Board to assist the Governor in identifying Commission applicants. (Sec. 8)
28. Continues the Commission until July 1, 2034. (Sec. 12)
29. Repeals the governing statutes of the Commission on January 1, 2035. (Sec. 12)
30. Contains a purpose statement that states the Legislature establishes the Commission to
regulate and promote gaming. (Sec. 13)
31. Establishes that the Commission succeeds to the powers and duties of:
a) the Arizona Racing Commission; and
b) the Department of Gaming. (Sec. 14)
32. Declares that all certificates, licenses, permits, registrations and other indicia of
authority and qualification issued by the Arizona Racing Commission and the
Department of Gaming retain their validity as provided by law. (Sec. 14)
33. Transfers to the Commission, on the general effective date, all equipment, furnishings,
records and other property and all unexpended and unencumbered appropriated monies
of the Arizona Racing Commission and the Department of Gaming. (Sec. 14) SB 1575
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34. States that all personnel under the state personnel system, who are employed by the
Arizona Racing Commission and the Department of Gaming are transferred, on the
general effective date, to comparable positions and pay classifications in the respective
administrative units of the Commission. (Sec. 14)
35. Specifies that the initial terms of the Commission are as follows:
a) the certified public accountant term expires on the last Monday in January 2027;
b) the member with investigation, law enforcement or gaming law experience term
expires on the last Monday in January 2028; and
c) the public members must assign themselves by lot to terms of two, three and four
years in office and notification must be sent to the Governor. (Sec. 14)
36. Directs Legislative Council staff to prepare proposed conforming legislation for
consideration in the Fifty-seventh Legislature, First Regular Session. (Sec. 15)
37. Defines gaming. (Sec. 8)
38. Makes technical and conforming changes. (Sec. 1-7, 9-11)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note