Bill
Number: S.B. 1797
Rios
Floor Amendment
Reference
to: COMMERCE Committee amendment
Amendment
drafted by: Leg Council
FLOOR
AMENDMENT EXPLANATION
1. Requires the Arizona
Department of Gaming (ADG), when establishing the fee for the privilege of
operating event wagering or operating a fantasy sports contest, to consider the
highest percentage of revenue share that an Indian tribe pays to the state
under the gaming compacts, rather than requiring the ADG to establish the fee
that is at least the highest percentage of revenue share.
2. Requires the ADG, if
more than 10 applications are received for a license type, to adopt a process
to ensure equal opportunity for all qualified applicants to obtain a license,
rather than requiring the ADG to adopt a process ensuring equal opportunity
unless more than 10 applications are received.
3. Modifies the process
for withholding past-due setoff obligations by:
a) requiring a fantasy
sports contest to withhold monies if required to file a form 1099-MISC or
equivalent form and requiring an event wagering operator to withhold monies if
required to file a form W-2G or equivalent form, rather than requiring either
operator to withhold monies if required to file either form;
b) requiring the ADG to
provide the information to event wagering facility operators from periodic
information the state agencies provide to the ADG, rather requiring agencies to
provide the information to each facility operator;
c) replacing the Arizona
Supreme Court with the Administrative Office of the Courts as an entity who may
identify a person with a past-due setoff obligation; and
d)
replacing
the Arizona Supreme Court with the courts as a category in the order of
priority prescribed for liability satisfaction if a person has multiple liabilities.
4. Clarifies the
conditional enactment for the expanded gaming authorizations to be when each
Indian tribe with a gaming facility in Pima County and each Indian tribe with a
gaming facility in the Phoenix Metropolitan Area have entered into a 2021 compact
amendment, rather than each Indian tribe with a gaming facility in Pima County
and the Phoenix Metropolitan Area.
5. Specifies that a
licensee may not offer a wager on an event, outcome or occurrence, including a
high school sports event offered, sponsored or played in connection with an
institution offering secondary education, other than a sports event or other
event.
6. Specifies that free
bets, rather than free play, may not be deducted from adjusted gross event
wagering receipts after the fifth year.
7. Specifies that the
State Treasurer must invest and divest any 2021 Compact Trust Fund monies on
notice from the Director of the ADG.
8. Removes the inclusion
of computers and other cashless wagering systems in the prohibition on a
fantasy sports constituting, involving or being based on a mechanical,
electromechanical or electronic device, equipment or machine.
9. Modifies the definition
of event wagering operator to specify that a designee of an entity
qualified for an event wagering operator license is considered the operator and
licensee.
10. Modifies the definition of script
relating to fantasy sports contests.
11. Makes technical and conforming changes.
Page 1,
before line 1, insert:
"Page
6, line 19, after "director" insert "of the department of gaming""
Between
lines 5 and 6, insert:
"Line
25, after the second "contest" insert "that is"
Line 26,
after "fee" insert "and""
Strike lines
7 and 8, insert:
"Page
8, line 9, after "machine" insert a period
strike remainder of line
Strike line
10
Line 20,
strike "sports" insert "a
sport"; strike "constitute" insert
"constitutes"
Line 33,
strike "or "platform""
Page 10,
line 4, strike "fantasy-contest-related" insert
"fantasy contest-related""
Strike lines
10 through 25
Page 2,
strike lines 1 through 16, insert:
"Page
12, line 22, strike "if it is determined"
insert "who is identified"
Line 23,
strike "that" insert "if"
Page 13,
line 2, strike the first and second commas
Page 17,
strike lines 21 through 43, insert:
"e. if a fantasy sports contest operator is required to file
a form 1099-misc or other substantially equivalent form with the united states
internal revenue service for a person who is identified by the administrative
office of the courts, the department of economic security division of child
support enforcement, the department of economic security supplemental nutrition
assistance program and assistance overpayment or the arizona health care cost containment
system administration as owing an obligation, the fantasy sports contest
operator shall withhold from the person's account the amount of obligations
owed at the time the form 1099-misc or a substantially equivalent form is
issued, if the fantasy sports operator has been notified by this state of the
obligation. at that time, the fantasy sports contest operator shall transmit
the amount withheld for obligations to the department of gaming and shall also
transmit any INFORMATION requested by the department of gaming. the
department of gaming shall provide information to the fantasy sports contest
operator of persons with outstanding obligations. if the identified
person is also self-excluded, tax liabilities and setoff obligations shall be
satisfied before any monies are donated to the department of gaming division of
problem gambling pursuant to section 5-1206. if the identified
person has MULTIPLE liabilities, those liabilities shall be satisfied in the
following order:
1. child
support enforcement.
2. supplemental
nutrition assistance program and assistance overpayment.
3. the
courts.
4. The
Arizona health care cost containment system administration."
Page 18,
line 38, strike "of"
Line 39,
strike "of," insert "or";
after the second "of" insert "an"; after "for" insert
"a license"
Page 20,
line 19, strike "that is not less than" insert
". in determining the fee, the department shall
consider"
Line 22,
after "pay" insert "the fee""
Page 2,
between lines 18 and 19, insert:
"Line
12, after "and" insert "each
indian tribe with a gaming facility""
Line 21,
after "bets" insert a comma
Page 3, line
3, strike "no" insert "a";
strike "play" insert "bets"
Line 4,
after "is" insert "not"
Between
lines 16 and 17, insert:
"Line
12, after the period insert "if an owner, operator or
promoter that qualified for an event wagering operator license appoints a
designee, the designee will be considered the event wagering operator and the
licensee with respect to the applicable license for the purposes of this
chapter.""
Line 19,
after "tribe" and "designee"
insert a comma
Line 22,
strike "owner, operator, promoter or"
Between
lines 28 and 29, insert:
"Line
29, strike "tour" insert "touring""
Page 4, line
2, strike "1099-MISC or"
Line 5,
after the first quotation mark insert a comma
Between
lines 22 and 23, insert:
"Page
27, line 9, after "company" insert a comma
Line 34,
strike the comma
Line 35,
after "provider" insert a comma
Page 28,
line 16, strike "than" insert "that the""
Line 24,
strike the second comma
Strike lines
29 through 31
Page 5,
strike lines 1 through 3, insert:
"Page
29, line 12, after "operator" insert a period
Page 30,
line 3, strike "within thirty days" insert "not later than sixty days"; strike "receipt of" insert "the department
receives"
Page 30,
line 5, strike "undertaken by"; after "department" insert "conducts"
Line 7,
after the period insert "if more than ten applications are
received for a particular license type, the department shall adopt a process
for ensuring an equal opportunity for all qualified applicants to obtain a
license."
Page 31,
strike line 35, insert "revocation or denial of an
application for a license or forfeiture of a license."
Page 32,
line 29, strike "for obtaining" insert "to obtain"
Page 33,
lines 2 and 14, strike "licensee" insert "operator"
Line 16,
after the comma insert "the"
Line 28,
strike "Licensee" insert "operator"
Page 34,
line 12, strike "licensee" insert "operator"
Line 22,
strike the first and second "licensed"
Line 32,
strike "licenses" insert "licensees"
Page 35,
line 31, strike "other than a sports event or other event"
Line 33,
after "level" insert ",
other than a sports event or other event""
Page 5, line
6, strike "insert a comma"
Strike line
8, insert:
"Page
39, line 35, strike "That is not less than"
insert ". In determining the fee, the department shall
consider""
Between
lines 10 and 11, insert:
"Page
41, line 13, after "event" insert
"wagering""
Line 14,
strike "trigger" insert "triggers";
strike "1099-MISC or"
Strike lines
17 through 20, insert:
"Line
15, strike "set-off" insert "setoff"; strike "it"
insert "the department of gaming"
Line 16,
strike "Arizona supreme court" insert "administrative office of the courts"; strike "to it"
Line 20,
after "system" insert "administration";
after the period insert "the department of gaming shall
provide to the event wagering facility operator information of persons with
outstanding obligations."
Line 21,
after "person" insert "receives
a payout of winnings that triggers the licensee's obligation to file a form
w-2g or a substantially equivalent form with the united states internal REVENUE
service and""
Page 5,
between lines 24 and 25, insert:
"Line
35, strike "arizona supreme court" insert
"the courts"
Line 36,
after "system" insert "administration"
Line 42,
after "and" insert "each
indian tribe with a gaming facility"
Page 45,
line 14, strike "section 5-112" insert
"section 5-112 and""
Amend title to conform