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ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
racing; boxing; transfer; gaming commission
Purpose
Effective July 1, 2023, establishes the Arizona Gaming Commission (Gaming Commission) to succeed the powers and duties of the Arizona Racing Commission (Racing Commission), the Arizona State Boxing and Mixed Martial Arts Commission (Boxing & MMA Commission) and the Arizona Department of Gaming (ADG).
Background
The ADG was established in 1995 and regulates tribal gaming activities in accordance with the Arizona tribal-state gaming compacts. The ADG is also responsible for certifying casino employees and vendors working with casinos and licensing fantasy sports contests and event wagering (A.R.S. Title 5). In 2015, the Legislature established a Division of Racing and a Division of Boxing and Mixed Martial Arts within the ADG to work with the Racing Commission and the Boxing & MMA Commission in regulating horse racing, boxing and mixed martial arts (Laws 2015, Ch. 19).
The Racing Commission was established in 1949 and has the power and duty to: 1) issue racing dates; 2) adopt rules to govern racing meetings to protect and promote the safety and welfare of animals; 3) promote the proper conduct of racing and parimutuel wagering; and 4) conduct hearings for permits and licensing and review applications for capital improvements at racetracks (A.R.S. § 5-104). The Racing Commission consists of five members, who are appointed by the Governor to five-year terms (A.R.S. § 5-102).
The Boxing & MMA Commission was established in 1982 and expanded to include mixed martial arts in 1997 with the power and duty to: 1) manage licensure for all referees, judges, matchmakers, promoters, trainers, ring announcers, timekeepers, ringside physicians, inspectors, mixed martial arts contestants, boxers, managers and seconds; 2) require medical examination and insurance coverage; 3) oversee all contests; 4) ensure payment to participants; and 5) conduct investigations and take appropriate disciplinary action (A.R.S. Title 5, Chapter 2). The Boxing & MMA Commission consists of three members who are appointed by the Governor to three-year terms (A.R.S. § 5-223).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Establishes the Arizona Gaming Commission to succeed the powers and duties of the Racing Commission, the Boxing & MMA Commission and the ADG.
2. Prescribes the Gaming Commission membership to consist of:
a) one governor-appointed member who is a certified public accountant licensed by Arizona or another state and have at least five years of experience in general accounting;
b) one governor-appointed member with at least five years of experience in law enforcement;
c) the Director of the Gaming Commission, who must have at least five years of public or business administration experience; and
d) three public members, one appointed by the Governor, one appointed by the President of the Senate and one appointed by the Speaker of the House of Representatives.
3. Requires the Governor to appoint the Director of the Gaming Commission.
4. Requires the initial terms for governor-appointed members of the Gaming Commission to expire in staggered years beginning the last Monday in January 2025, the last Monday in January 2026 and the last Monday in January 2027.
5. Requires the initial terms of Gaming Commission members appointed by the President of the Senate and the Speaker of the House of Representatives to expire on the last Monday in January 2026.
6. Requires each Gaming Commission member to be appointed to four-year terms, after initial terms.
7. Allows the Governor to remove any member of the Gaming Commission for cause.
8. Allows a vote of the majority of the Gaming Commission to remove a member without cause.
9. Requires each Gaming Commission member to take the official oath before entering on the discharge of the appointee's duties.
10. Disqualifies from Gaming Commission membership, appointment or employment any person who:
a) has a direct or indirect financial interest in gaming; or
b) holds elected office in Arizona or any officer or official of a political party or convention.
11. Declares that a majority of the Gaming Commission constitutes a quorum.
12. Requires the Commission to:
a) assume all the powers and duties of the Racing Commission, the Boxing & MMA Commission and the ADG;
b) enforce all rules adopted relating to gaming;
c) ensure the continued growth and success of gaming in Arizona by establishing public confidence;
d) regulates the location, practice, association and activities relating to the operation of licensed gaming establishments and the manufacture, sale or distribution of gaming devices and associated equipment;
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;
f) meet at the discretion of the Gaming Commission; and
g) have an office located in Phoenix.
13. Allows the Gaming Commission to have an office located in Tucson.
14. Requires, on request from the Gaming Commission, a state agency or political subdivision to provide the Gaming Commission with its services, equipment, documents, personnel and facilities to the extent possible without cost.
15. Repeals certain statutes relating to the ADG regulating gambling on Indian reservations.
16. Repeals the Racing Commission, the Boxing & MMA Commission and the ADG.
17. Terminates the Gaming Commission on July, 1, 2032.
18. Requires Legislative Council staff to prepare proposed conforming legislation for consideration in the Fifty-Sixth Legislature, First Regular Session.
19. Defines gaming to mean all racing, boxing, kickboxing, mixed martial arts, gambling on Indian reservations, fantasy sports contests and event wagering conducted in Arizona.
20. Contains a purpose statement.
21. Makes technical and conforming changes.
22. Becomes effective on July 1, 2023.
Prepared by Senate Research
February 7, 2022
JT/sr