 |
ARIZONA STATE SENATE
Fifty-Fourth Legislature, Second Regular Session
class III gaming; revenue distribution
Purpose
Allocates the state's share of revenue from class III gaming not authorized on the general effective date in specified establishments outside Indian reservations, if the state authorizes such class III gaming. Authorizes a city or town council or county board of supervisors to prohibit such gaming, if it is authorized by the state.
Background
Federal law defines class III gaming as all forms of gaming that are not social games, traditional forms of Indian gaming in connection with ceremonies or celebrations, or bingo games (25 U.S.C. § 2703). Arizona's Criminal Code prohibits promotion of gambling and benefiting from gambling, except for amusement gambling or regulated gambling (A.R.S. Title 13, Chapter 33). Regulated gambling is gambling conducted in accordance with: 1) an Arizona tribal-state gaming compact; or 2) Arizona or federal statute, rule or order for which all federal, state and local taxes, fees and charges in lieu of taxes have been paid (A.R.S. § 13-3301).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires the Legislature, if the state authorizes class III gaming in bars, beer and wine bars, casinos and racetracks located outside Indian reservations that was not authorized on the general effective date, to annually appropriate the state's share of revenue from such class III gaming as follows:
a) 40 percent to the Department of Public Safety (DPS) for purposes specified by the Director of DPS;
b) 40 percent to fund kindergarten programs and grades 1 through 12 in public schools;
c) 2.5 percent to the Attorney General to deposit in the Internet Crimes Against Children Enforcement Fund;
d) 2.5 percent to the Arizona Health Care Cost Containment System for opioid addiction treatment programs; and
e) 5 percent to Arizona counties, distributed in equal amounts.
2. Retains, in the state General Fund for use as prescribed by law, 10 percent of the state's share of revenue from new state-authorized class III gaming revenue in bars, beer and wine bars, casinos and racetracks located outside Indian reservations.
3. Limits, to slot machines, any state authorization of class III gaming at racetracks that was not authorized in Arizona on the general effective date.
4. Limits, to slot machines that operate on table tops, any state authorization of class III gaming in bars and beer and wine bars that was not authorized in Arizona on the general effective date.
5. Allows a city or town council where a bar, beer and wine bar, casino or racetrack is located to prohibit new state-authorized class III gaming in that establishment.
6. Allows a county board of supervisors where a bar, beer and wine bar, casino or racetrack that is not located in a municipality is located to prohibit new state-authorized class III gaming in that establishment.
7. Requires the ADG to assess and collect license fees for bars, beer and wine bars, casinos and racetracks that apply to the ADG to conduct class III gaming.
8. Specifies that this legislation does not authorize class III gaming that was not authorized in Arizona on the general effective date in bars, beer and wine bars, casinos and racetracks located outside Indian reservations.
9. Specifies that class III gaming has the same meaning as in federal law.
10. Becomes effective on the general effective date.
Prepared by Senate Research
January 21, 2020
JA/LB/kja