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REFERENCE TITLE: certification; family‑oriented gaming |
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State of Arizona House of Representatives Fifty-first Legislature Second Regular Session 2014
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HB 2151 |
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Introduced by Representatives Farnsworth E, Lesko, Livingston, Thorpe: Allen, Boyer, Dial, Montenegro, Petersen, Pierce J, Senator Driggs
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AN ACT
AMENDING TITLE 5, ARIZONA REVISED STATUTES, BY ADDING CHAPTER 10; AMENDING SECTION 13‑3302, ARIZONA REVISED STATUTES; AMENDING SECTION 13‑3302, ARIZONA REVISED STATUTES, as amended by this act; RELATING TO GAMING; providing for conditional repeal; providing for conditional enactment.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 5, Arizona Revised Statutes, is amended by adding chapter 10, to read:
CHAPTER 10
FAMILY-ORIENTED GAMING
ARTICLE 1. GENERAL PROVISIONS
5-1201. Family-oriented gaming; certification requirements; fee
A. The department of gaming shall certify a business for family‑oriented gaming if the business complies with all of the following:
1. Offers to the public a device, game or contest that is played for entertainment and all of the following apply:
(a) The player or players actively participate in the game or contest or with the device.
(b) The outcome is not in the control to any material degree of any person other than the player or players.
(c) The prizes are not offered as a lure to separate the player or players from their money.
(d) Skill and not chance is clearly the predominant factor in the game and the odds of winning the game based on chance cannot be altered, provided the game complies with any licensing or regulatory requirements by the jurisdiction in which it is operated and no benefit for a single win is given to the player or players other than a merchandise prize that has a wholesale fair market value of six dollars or less or coupons that are redeemable only at the place of play.
2. Is located in a permanent structure.
3. If the business serves alcoholic beverages, its license is limited to serving alcoholic beverages with a restaurant license as provided in section 4‑205.02 or a hotel‑motel license as provided in section 4‑205.01.
4. Is primarily marketed for family entertainment.
5. Has no area or room or part of any area or room in the business that is age restricted.
B. The department of gaming may inspect a business that is certified for family-oriented gaming up to two times each calendar year for compliance with this section.
C. The department of gaming may prescribe a fee to be collected from each business that is certified pursuant to this section.
5-1202. Rules
The department of gaming may adopt rules pursuant to title 41, chapter 6 to carry out this chapter.
Sec. 2. Section 13-3302, Arizona Revised Statutes, is amended to read:
13-3302. Exclusions
A. The following conduct is not unlawful under this chapter:
1. Amusement gambling.
2. Social gambling.
3. Regulated gambling if the gambling is conducted in accordance with the statutes, rules or orders governing the gambling.
4. Gambling that is conducted at state, county or district fairs and that complies with section 13‑3301, paragraph 1, subdivision (d).
5. Family-oriented gaming at a business that is certified pursuant to section 5‑1201.
B. An organization that has qualified for an exemption from taxation of income under section 43‑1201, subsection A, paragraph 1, 2, 4, 5, 6, 7, 10 or 11 may conduct a raffle that is subject to the following restrictions:
1. The nonprofit organization shall maintain this status and no member, director, officer, employee or agent of the nonprofit organization may receive any direct or indirect pecuniary benefit other than being able to participate in the raffle on a basis equal to all other participants.
2. The nonprofit organization has been in existence continuously in this state for a five year period immediately before conducting the raffle.
3. No person except a bona fide local member of the sponsoring organization may participate directly or indirectly in the management, sales or operation of the raffle.
4. Nothing in paragraph 1 or 3 of this subsection prohibits a licensed general hospital, a licensed special hospital or a foundation established to support cardiovascular medical research that is exempt from taxation of income under section 43‑1201, subsection A, paragraph 4 or section 501(c)(3) of the internal revenue code from contracting with an outside agent who participates in the management, sales or operation of the raffle if the proceeds of the raffle are used to fund medical research, graduate medical education or indigent care and the raffles are conducted no more than three times per calendar year. The maximum fee for an outside agent shall not exceed fifteen per cent of the net proceeds of the raffle.
C. A state, county or local historical society designated by this state or a county, city or town to conduct a raffle may conduct the raffle subject to the following conditions:
1. No member, director, officer, employee or agent of the historical society may receive any direct or indirect pecuniary benefit other than being able to participate in the raffle on a basis equal to all other participants.
2. The historical society must have been in existence continuously in this state for a five year period immediately before conducting the raffle.
3. No person except a bona fide local member of the sponsoring historical society may participate directly or indirectly in the management, sales or operation of the raffle.
D. A nonprofit organization that is a booster club, a civic club or a political club or political organization as defined in section 16‑901 may conduct a raffle that is subject to the following restrictions:
1. No member, director, officer, employee or agent of the club or organization may receive any direct or indirect pecuniary benefit other than being able to participate in the raffle on a basis equal to all other participants.
2. No person except a bona fide local member of the sponsoring club or organization may participate directly or indirectly in the management, sales or operation of the raffle.
3. The maximum annual benefit that the club or organization receives for all raffles is ten thousand dollars.
4. The club or organization is organized and operated exclusively for pleasure, recreation or other nonprofit purposes and no part of the club's or organization's net earnings inures to the personal benefit of any member, director, officer, employee or agent of the club or organization.
Sec. 3. Section 13-3302, Arizona Revised Statutes, as amended by section 2 of this act, is amended to read:
13-3302. Exclusions
A. The following conduct is not unlawful under this chapter:
1. Amusement gambling.
2. Social gambling.
3. Regulated gambling if the gambling is conducted in accordance with the statutes, rules or orders governing the gambling.
4. Gambling that is conducted at state, county or district fairs and that complies with section 13‑3301, paragraph 1, subdivision (d).
5. Family-oriented gaming at a business that is certified pursuant to section 5‑1201.
B. An organization that has qualified for an exemption from taxation of income under section 43‑1201, subsection A, paragraph 1, 2, 4, 5, 6, 7, 10 or 11 may conduct a raffle that is subject to the following restrictions:
1. The nonprofit organization shall maintain this status and no member, director, officer, employee or agent of the nonprofit organization may receive any direct or indirect pecuniary benefit other than being able to participate in the raffle on a basis equal to all other participants.
2. The nonprofit organization has been in existence continuously in this state for a five year period immediately before conducting the raffle.
3. No person except a bona fide local member of the sponsoring organization may participate directly or indirectly in the management, sales or operation of the raffle.
4. Nothing in paragraph 1 or 3 of this subsection prohibits a licensed general hospital, a licensed special hospital or a foundation established to support cardiovascular medical research that is exempt from taxation of income under section 43‑1201, subsection A, paragraph 4 or section 501(c)(3) of the internal revenue code from contracting with an outside agent who participates in the management, sales or operation of the raffle if the proceeds of the raffle are used to fund medical research, graduate medical education or indigent care and the raffles are conducted no more than three times per calendar year. The maximum fee for an outside agent shall not exceed fifteen per cent of the net proceeds of the raffle.
C. A state, county or local historical society designated by this state or a county, city or town to conduct a raffle may conduct the raffle subject to the following conditions:
1. No member, director, officer, employee or agent of the historical society may receive any direct or indirect pecuniary benefit other than being able to participate in the raffle on a basis equal to all other participants.
2. The historical society must have been in existence continuously in this state for a five year period immediately before conducting the raffle.
3. No person except a bona fide local member of the sponsoring historical society may participate directly or indirectly in the management, sales or operation of the raffle.
D. A nonprofit organization that is a booster club, a civic club or a political club or political organization as defined in section 16‑901 may conduct a raffle that is subject to the following restrictions:
1. No member, director, officer, employee or agent of the club or organization may receive any direct or indirect pecuniary benefit other than being able to participate in the raffle on a basis equal to all other participants.
2. No person except a bona fide local member of the sponsoring club or organization may participate directly or indirectly in the management, sales or operation of the raffle.
3. The maximum annual benefit that the club or organization receives for all raffles is ten thousand dollars.
4. The club or organization is organized and operated exclusively for pleasure, recreation or other nonprofit purposes and no part of the club's or organization's net earnings inures to the personal benefit of any member, director, officer, employee or agent of the club or organization.
Sec. 4. Conditional repeal; conditional enactment; notice
A. Title 5, chapter 10, Arizona Revised Statutes, as added by this act, is repealed if a tribe finds that family-oriented gaming is a new form of gaming in this state and notifies this state of its finding pursuant to the tribal-state gaming compact under compact section 3(i) of section 5‑601.02, Arizona Revised Statutes.
B. Section 13-3302, Arizona Revised Statutes, as amended by section 3 of this act, does not become effective unless a tribe finds that family‑oriented gaming is a new form of gaming in this state and notifies this state of its finding pursuant to the tribal-state gaming compact under compact section 3(i) of section 5-601.02, Arizona Revised Statutes.
C. The department of gaming shall notify in writing the director of the Arizona legislative council of this date.