Assigned to APPROP                                                                                                                     AS ENACTED

ARIZONA STATE SENATE

Fifty-Fifth Legislature, Second Regular Session

ENACTED

FACT SHEET FOR H.B. 2855/S.B. 1722

amusements; 2022-2023

Purpose

Makes statutory and session law changes relating to amusements necessary to implement the FY 2023 state budget.

Background

The Arizona Constitution prohibits substantive law from being included in the general appropriations, capital outlay appropriations and supplemental appropriations bills. However, it is often necessary to make statutory and session law changes to effectuate the budget. Thus, separate bills called budget reconciliation bills (BRBs) are introduced to enact these provisions. Because BRBs contain substantive law changes, the Arizona Constitution provides that they become effective on the general effective date, unless an emergency clause is enacted.

H.B. 2855 contains the budget reconciliation provisions for changes relating to amusements.

Provisions

1. Caps the fee for the privilege to operate fantasy sports contests at 10 percent of the fantasy sports contest operator's adjusted revenues.

2. Caps the fee for the privilege to operate event wagering at 10 percent of the event wagering operator's adjusted gross event wagering receipts.

3. Specifies that any revenues collected in excess of the amount appropriated from the Fantasy Sports Contest Fund at the end of each fiscal year must be transferred to the state General Fund (state GF). 

4. Requires 90 percent of the monies deposited in the Event Wagering Fund from the previous month to be transferred to the state GF by the 25th of each month, rather than requiring any remaining monies be transferred to the state GF on the 25th of each month.

5. Continues to require the Arizona Department of Gaming, in FY 2023, to establish and collect, in addition to amounts already authorized, a regulatory assessment from each commercial racing permittee in the amount of 0.5 percent of the amounts wagered, payable from
pari-mutuel pools from in-state and out-of-state live and simulcast races.

6. Makes technical changes.

7. Becomes effective on the general effective date.

House Action Senate Action

APPROP         6/21/22      DP     8-5-0-0                 APPROP         6/22/22      DP    5-3-2

3^rd Read          6/22/22                 41-18-1                3^rd Read          6/23/22               18-10-2

                                                                                 (H.B. 2855 was substituted for S.B. 1722 on 3^rd Read)

Signed by the Governor 6/28/22

Chapter 306

Prepared by Senate Research

June 30, 2022

JT/sr