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| Home > Statutes > Usa Arizona |
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USA Statutes : arizona
Title : Amusements and Sports
Chapter : HORSE AND DOG RACING
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5-101.01 ARIZONA department of racing; director; qualifications; term; deputy director; conflict of interest
A. There is established an ARIZONA department of racing.
B. The governor shall appoint a director of the department pursuant to section
38-211 and in accordance with the provisions of subsection C of this section. The
director serves at the pleasure of the governor for a term of five years. To be eligible
for appointment as director, a person must have a minimum of five years of experience in
business and administration and shall not have a financial interest in a racetrack or in
the racing industry in this state during the term of his appointment. The governor may
appoint an acting director if there is a vacancy in the office.
C. Within sixty days after a vacancy occurs in the position of director, the
commission shall forward a list of three candidates for appointment as director to the
governor. The governor may request one additional list to be submitted by the
commission. In the event the governor does not appoint the director within thirty days
following receipt of the list submitted by the commission, the commission shall select a
director for the department. In the event that the commission fails to submit the lists
requested by the governor, the governor may appoint any qualified person to the position
of director.
D. The commission may establish the position of deputy director of the department.
E. The positions of director and deputy director, if applicable, are exempt from
title 41, chapter 4, articles 5 and 6. Persons holding the positions of director and
deputy director, if applicable, are eligible to receive compensation pursuant to section
38-611.
F. The provisions of title 38, chapter 3, article 8, relating to conflict of
interest, apply to the director and all other employees of the department.
G. Neither the director, any employee of the department nor any member of the
immediate family of the director or other employee of the department may:
1. Have any pecuniary interest in a racetrack in this state or in any kennel,
stable, compound or farm licensed under this chapter.
2. Wager money at a racetrack enclosure or additional wagering facility in this
state or wager money on the results of any race held at a racetrack enclosure in this
state.
3. Hold more than a five per cent interest in any entity doing business with a
racetrack in this state.
4. Have any interest, whether direct or indirect, in a license issued pursuant to
this chapter or in a licensee, facility or entity that is involved in any way with
pari-mutuel wagering. For the purposes of this paragraph, "interest" includes
employment.
H. Failure to comply with subsection G of this section is grounds for dismissal.
I. For the purposes of subsection G of this section, "immediate family" means a
spouse or children who regularly reside in the household of the director or other
employee of the department.
5-101 Definitions
In this article, unless the context otherwise requires:
1. "Additional wagering facility" means a facility which is not the enclosure in
which authorized racing takes place but which meets the requirements of section 5-111,
subsection A and is used by a permittee for handling pari-mutuel wagering.
2. "Applicant" means a person, partnership, association or corporation placing
before the department an application for a permit or license.
3. "Association" means a body of persons, corporations, partnerships or
associations, united and acting together without a charter from the state for the
prosecution of some common enterprise.
4. "Commercial horse racing" means horse racing conducted other than by a county
fair association.
5. "Commission" means the ARIZONA racing commission.
6. "Concessionaire" means a person, partnership, association or corporation that
offers goods or services for sale to the public, a permittee or a licensee at an
enclosure in which authorized racing takes place or an additional wagering facility.
7. "County fair facility" means any place, enclosure or track constructed in
accordance with a permit issued by the commission for the purpose of running county fair
horse racing dates as well as any commercial dates for horse racing that may be awarded
by the commission in reference to such a location.
8. "County fair racing association" means an association duly authorized by the
board of supervisors to conduct a county fair racing meeting for the benefit of the
county.
9. "Dark day simulcast" means a simulcast received on a day when there are no
posted races conducted at the enclosure in which authorized racing takes place.
10. "Department" means the ARIZONA department of racing.
11. "Desensitized" means that a horse's or dog's legs upon arrival at the receiving
barn, saddling paddock or lockout kennel do not respond appropriately to tests for
feeling administered by an official veterinarian.
12. "Director" means the director of the ARIZONA department of racing.
13. "Dog racing" means racing in which greyhound dogs chase a mechanical lure.
14. "Entered" means that a horse or dog has been registered with an authorized
racing official as a participant in a specified race and has not been withdrawn prior to
presentation of the horse or dog for inspection and testing as provided in section 5-105.
15. "Financial interest" means any direct pecuniary interest.
16. "Firm" means a business unit or enterprise that transacts business.
17. "Handle" means the total amount of money contributed to all pari-mutuel pools by
bettors.
18. "Harness racing" means horse racing in which the horses are harnessed to a
sulky, carriage or similar vehicle and driven by a driver.
19. "Horse racing" means racing in which horses are mounted and ridden by
jockeys. For purposes of county fair racing meetings, "horse racing" means racing in
which horses or mules are mounted and ridden by jockeys.
20. "License" means the license issued by the department to each employee or other
person participating in any capacity in a racing meeting, including officials and
employees of the pari-mutuel department.
21. "Pari-mutuel wagering" means a system of betting which provides for the
distribution among the winning patrons of at least the total amount wagered less the
amount withheld under state law.
22. "Permit" means a permit for a racing meeting issued under the provisions of this
article.
23. "Racing meeting" means a number of days of racing allotted by the commission in
one permit.
24. "Simulcast" means the telecast shown within this state of live audio and visual
signals of horse, harness or dog races conducted at an out-of-state track or the telecast
shown outside this state of live audio and visual signals of horse, harness or dog races
originating within this state for the purpose of pari-mutuel wagering.
25. "Undesirable" includes known bookmakers, touts, persons convicted of a violation
of any provision of this article or of any law prohibiting bookmaking or any other
illegal forms of wagering, or any other person whose presence would, in the opinion of
the director, be inimical to the interests of the state.
26. "Week" means seven consecutive days beginning on Monday and ending on Sunday,
mountain standard time.
5-102 ARIZONA racing commission; members;appointment; terms
There shall be an ARIZONA racing commission consisting of five members, who shall be
appointed by the governor pursuant to section 38-211. Appointment shall be for a term of
five years which shall expire on the third Monday in January of the appropriate year.
5-103.01 Prohibited activities
An employee or appointee of the commission may not:
1. Enter into any business dealing, venture or contract with an owner or lessee of
a race track or any permittee.
2. Be employed in any capacity by any race track or permittee.
3. Participate as an owner-trainer, trainer or jockey in any racing meeting
conducted in this state.
5-103 Commissioners; qualifications; oath;interest in racing prohibited; exception
A. A member of the commission shall have been a resident of this state and a
qualified elector for not less than five years next preceding appointment.
B. Before entering upon the discharge of the appointee's duties, each appointee
shall take the official oath.
C. A person who has a financial interest, either directly or indirectly, in a
racetrack, or the operation of licensed wagering on the results of races, is not
qualified for membership on the commission or appointment or employment by the
commission, but this subsection shall not be construed to affect the entrance into a race
outside this state of a horse or dog belonging to a member, or the winning of a purse or
award by such horse or dog.
D. A commissioner or member or a relative of the commissioner or member to the
first degree of consanguinity may not have a financial interest in a licensee or
permittee regulated by the department.
E. Of the five members appointed to the commission:
1. One but not more than one shall have a financial interest or substantial
experience in the horse or harness racing industry.
2. One but not more than one shall have a financial interest or substantial
experience in the dog racing industry.
F. Members of the commission are eligible to receive compensation pursuant to
section 38-611 for each day spent in the discharge of their duties and reimbursement for
all expenses necessarily and properly incurred in attending meetings of or for the
commission.
G. The governor shall remove any commissioner who ceases to meet the qualifications
prescribed by this section.
5-104.01 Audits and special investigations; exemption
A. The department shall require that an annual financial audit be conducted of each
permittee licensed under this chapter. The department may also require a financial audit
from any concessionaire licensed under this article. The department may, for any audit
required by this section, require a permittee or concessionaire to supply a certified
audit to the department. The commission shall adopt rules that require each permittee to
select an accounting firm approved by the auditor general to conduct the annual financial
audit when a certified audit is required. Audits performed pursuant to this section
shall be conducted in accordance with auditing standards established by the auditor
general.
B. All permittees and licensees subject to the financial audit as prescribed by
this section shall afford reasonable and needed facilities and make returns and exhibits
to the department or audit firm in the form and at the time prescribed by the
department. The auditor representing the department shall have access to all
information, records, pari-mutuel betting devices and equipment necessary to conduct
electronic data processing and other audits and reviews. The computer software and other
proprietary information and records obtained by the auditor are not subject to disclosure
and are exempt from title 39, chapter 1.
C. The commission may reduce the number of racing days of a permittee or revoke the
permit or license of a person who knowingly fails or refuses to make the prescribed
returns or exhibits or give information as required.
D. The department may expend monies for the purpose of special investigations of
permittees or licensees to determine compliance with this chapter or the rules issued
pursuant to this chapter.
E. The department may require that the audit and investigation of a permittee and
licensee include any person who has a substantial interest, as defined in section 38-502,
in the permittee or licensee.
F. This section does not apply to a racing meeting operated by a county fair
association.
5-104.02 Levy of tax on gross receipts; disposition; verification and financial audit; definition
A. Any person who promotes a boxing contest in this state pursuant to chapter 2,
article 2 of this title shall comply with rules of the director adopted pursuant to
section 5-104 and shall within ten days after the contest pay to the department four per
cent of the gross receipts, after the deduction of city, state and federal taxes, of such
match or exhibition.
B. The department shall verify the gross receipts of a contest. The director may
require a person or corporation licensed under chapter 2, article 2 of this title to
supply a certified financial audit to the department. The director shall adopt rules
that require each person or corporation licensed under chapter 2, article 2 of this title
to select a certified public accountant to conduct the financial audit. The financial
statements prepared pursuant to this section shall be prepared in accordance with
generally accepted accounting principles and shall include any additional schedules the
director may require. A person subject to a financial audit under this section shall
afford reasonable and needed facilities and make returns and exhibits to the department
in the form and at the time prescribed by the director.
C. At the end of each month the director shall report to the department of
administration the total amount received under chapter 2, article 2 of this title from
all sources including license fees and shall deposit it, pursuant to sections 35-146 and
35-147, in the state general fund.
D. A promoter may issue complimentary tickets that are exempt from taxation
pursuant to this title. If a promoter issues complimentary tickets, the exemption from
taxation applies to two per cent of the total number of tickets issued for the event or
seventy-five tickets, whichever is greater.
E. As used in this section, "gross receipts" means all receipts from the face value
of tickets sold.
5-104 Racing commission; director; department;powers and duties
A. The commission shall:
1. Issue racing dates.
2. Prepare and adopt such complete rules to govern the racing meetings as may be
required to protect and promote the safety and welfare of the animals participating in
such racing meetings, to protect and promote public health, safety and the proper conduct
of racing and pari-mutuel wagering and any other matter pertaining to the proper conduct
of racing within this state.
3. Conduct hearings on applications for permits and approve permits and shall
conduct such rehearings on licensing and regulatory decisions made by the director as
required pursuant to rules adopted by the commission.
4. Conduct all reviews of applications to construct capital improvements at
racetracks as provided in this chapter.
5. Adopt rules governing the proper and humane methods for the disposition and
transportation of dogs by breeders, kennels or others.
B. The director shall license personnel and shall regulate and supervise all racing
meetings held and pari-mutuel wagering conducted in this state and cause the various
places where racing meetings are held and wagering is conducted to be visited and
inspected on a regular basis. The director may delegate to stewards such of the
director's powers and duties as are necessary to fully carry out and effectuate the
purposes of this chapter. The director shall exercise immediate supervision over the
department of racing. The director is subject to ongoing supervision by the commission,
and the commission may approve or reject decisions of the director in accordance with
rules established by the commission.
C. The commission or the department is authorized to allow stewards, with the
written approval of the director, to require a jockey, apprentice jockey, sulky driver,
groom, horseshoer, outrider, trainer, assistant trainer, exercise rider, pony rider,
starter, assistant starter, jockey's agent, veterinarian, assistant veterinarian,
cool-out, lead-out, paddock employee, security or maintenance worker, official or
individual licensed in an occupational category whose role requires direct hands-on
contact with horses or greyhounds, while on the grounds of a permittee, to submit to a
test if the stewards have reason to believe the licensee is under the influence of or
unlawfully in possession of any prohibited substance regulated by title 13, chapter 34.
D. The department shall employ the services of the office of administrative
hearings to conduct hearings on matters requested to be heard by the director or the
commission for the department except for those rehearings that are required by the terms
of this chapter to be conducted by the commission. Any person adversely affected by a
decision of a steward or by any other decision of the department may request a hearing on
such decision. The decision of the administrative law judge becomes the decision of the
director unless rejected or modified by the director within thirty days. The commission
may hear any appeal of a decision of the director in accordance with title 41, chapter 6,
article 10.
E. The department may visit and investigate the offices, tracks or places of
business of any permittee and place in those offices, tracks or places of business expert
accountants and such other persons as it deems necessary for the purpose of ascertaining
that the permittee or any licensee is in compliance with the rules adopted pursuant to
this article.
F. The department shall collect the fees payable for a license issued by it, as
follows:
1. Occupational licenses, up to fifty dollars.
2. Owner, trainer, veterinarian, authorized agent, officials, assistant trainer,
stable name renewal or kennel name renewal, up to seventy-five dollars.
3. Owner-trainer, driver, jockey, jockey agent or apprentice jockey, up to one
hundred fifty dollars.
4. New stable name or new kennel name, up to five hundred dollars.
5. Duplicate license, up to five dollars.
6. Temporary license, up to fifty dollars.
7. If not licensed pursuant to paragraph 9 of this subsection with a combination
license, greyhound racing kennels, up to one hundred dollars.
8. If not licensed pursuant to paragraph 9 of this subsection with a combination
license, farms or other operations where greyhounds are raised for the purpose of dog
racing, up to one hundred dollars.
9. Any combination of greyhound racing kennels, farms or other operations where
greyhounds are raised for the purpose of dog racing, up to one hundred dollars.
G. The commission shall establish financial assistance procedures for promoting
adoption of racing greyhounds as domestic pets and for promoting adoption of retired
racehorses. The provision of financial assistance to nonprofit enterprises for the
purpose of promoting adoption of racing greyhounds as domestic pets and for the purpose
of promoting adoption of retired racehorses is contingent on a finding by the commission
that the program presented by the enterprise is in the best interest of the racing
industry and this state. Upon a finding by the commission, the commission is authorized
to make grants to nonprofit enterprises whose programs promote adoption of racing
greyhounds or adoption of retired racehorses. The commission shall develop an application
process. The commission shall require an enterprise to report to the commission on the
use of grants under this subsection. Financial assistance for nonprofit enterprises for
the purpose of promoting adoption of racing greyhounds as domestic pets under this
subsection shall not exceed the amount collected for license fees under subsection F,
paragraphs 7, 8 and 9 of this section. Financial assistance for nonprofit enterprises
that promote adoption of retired racehorses under this subsection shall not exceed the
amount of retired racehorse adoption surcharges collected pursuant to this subsection.
The commission shall collect a retired racehorse adoption surcharge in addition to each
civil penalty assessed in connection with horse or harness racing pursuant to this
article. The amount of the retired racehorse adoption surcharge shall be five per cent of
the amount collected for each applicable civil penalty.
H. A license is valid for the period established by the commission, but not to
exceed three years, except for a temporary license issued pursuant to section 5-107.01,
subsection F. The licensing period for horse racing shall begin July 1. The licensing
period for greyhound racing shall begin February 1.
I. Upon application in writing by an objector to any decision of track stewards,
made within three days after the official notification to the objector of the decision
complained of, the department or administrative law judge shall review the objection. In
the case of a suspension of a license by the track stewards, such suspension shall
commence at once and run for a period of not more than sixty days. Before the end of this
suspension period, filing an application for review is not cause for reinstatement. If at
the end of this suspension period the department or administrative law judge has not held
a hearing to review the decision of the stewards, the suspended license shall be
reinstated until such time as the department or administrative law judge holds a hearing
to review the objection. Except as provided in section 41-1092.08, subsection H, a final
decision of the commission is subject to judicial review pursuant to title 12, chapter 7,
article 6.
J. The commission or the director may issue subpoenas for the attendance of
witnesses and the production of books, records and documents relevant and material to a
particular matter before the commission or department. Such subpoenas shall be served and
enforced in accordance with title 41, chapter 6, article 10.
K. Any member of the commission, the administrative law judge or the director or
the director's designee may administer oaths, and such oaths shall be administered to any
person who appears before the commission to give testimony or information pertaining to
matters before the commission.
L. The commission shall adopt rules which require permittees to retain for three
months all official race photographs and videotapes. The department shall retain all such
photographs and videotapes which are used as evidence in an administrative proceeding
until the conclusion of the proceeding and any subsequent judicial proceeding. All
photographs and videotapes must be available to the public on request, including
photographs and videotapes of races concerning which an objection is made, regardless of
whether the objection is allowed or disallowed.
M. The director may establish a management review section for the development,
implementation and operation of a system of management reports and controls in major
areas of department operations, including licensing, work load management and staffing,
and enforcement of the provisions of this article and the rules of the commission.
N. In cooperation with the department of public safety, the director shall
establish a cooperative fingerprint registration system. Each applicant for a license or
permit under this article or any other person who has a financial interest in the
business or corporation making the application shall submit to fingerprint registration
as part of the background investigation conducted pursuant to section 5-108. The
cooperative fingerprint registration system shall be maintained in an updated form using
information from available law enforcement sources and shall provide current information
to the director upon request as to the fitness of each racing permittee and each racing
licensee to engage in the racing industry in this state.
O. The director shall develop and require department staff to use uniform
procedural manuals in the issuance of any license or permit under this article and in the
enforcement of this article and the rules adopted under this article.
P. The director shall submit an annual report containing such operational and
economic performance information as is necessary to evaluate the department's budget
request for the forthcoming fiscal year to the governor, the speaker of the house of
representatives, the president of the senate and the ARIZONA state library, archives and
public records no later than September 30 each year. The annual report shall be for the
preceding fiscal year and contain such performance information as:
1. The total state revenues for the previous fiscal year from the overall
pari-mutuel handle with an itemization for each dog racing meeting, each horse racing
meeting, each harness racing meeting and each additional wagering facility.
2. The total state revenues for the previous fiscal year from the regulation of
racing, including licensing fees assessed pursuant to subsection F of this section and
monetary penalties assessed pursuant to section 5-108.02.
3. The amount and use of capital improvement funds pursuant to sections 5-111.02
and 5-111.03 which would otherwise be state revenues.
4. The number of licenses and permits issued, renewed, pending and revoked during
the previous fiscal year.
5. The investigations conducted during the previous fiscal year and any action
taken as a result of the investigations.
6. The department budget for the immediately preceding three fiscal years,
including the number of full-time, part-time, temporary and contract employees, a
statement of budget needs for the forthcoming fiscal year and a statement of the minimum
staff necessary to accomplish these objectives.
7. Revenues generated for this state for the preceding fiscal year by persons
holding horse, harness and dog racing permits.
8. Recommendations for increasing state revenues from the regulation of the racing
industry while maintaining the financial health of the industry and protecting the public
interest.
Q. The commission may certify animals as ARIZONA bred or as ARIZONA stallions. The
commission may delegate this authority to a breeders' association it contracts with for
these purposes. The commission may authorize the association, racing organization or
department to charge and collect a reasonable fee to cover the cost of breeding or
ownership certification or transfer of ownership for racing purposes.
R. The department has responsibility for the collection and accounting of revenues
for the state boxing commission including, but not limited to, licensing fees required by
section 5-230, the levy of the tax on gross receipts imposed by section 5-104.02 and cash
deposited pursuant to section 5-229. All revenues collected pursuant to this subsection,
from whatever source, shall be reported and deposited pursuant to section 5-104.02,
subsection C. The director shall adopt rules as necessary to accomplish the purposes of
this subsection and chapter 2, article 2 of this title.
S. The commission may obtain the services of the office of administrative hearings
on any matter which the commission is empowered to hear.
T. The department may adopt rules pursuant to title 41, chapter 6 to carry out the
purposes of this article, ensure the safety and integrity of racing in this state and
protect the public interest.
5-105 Appointment of personnel; tests; reports;detention of animals; testing facilities
A. For purposes of detecting violations of this article, the department shall
appoint qualified veterinarians, biochemists and such other personnel as the department
considers necessary or may contract with a duly qualified chemical laboratory located
either within or outside this state. The testing personnel may, in accordance with such
procedures as the commission by regulation prescribes:
1. Examine horses entered in a race within six hours before the start of the race
to determine if the horse has been desensitized or drugged. For the purposes of the
examination a horse does not have to be held in a retaining barn.
2. Examine dogs at weigh-in or weigh-out time to determine if the dog has been
desensitized or drugged.
3. Perform such other tests and inspections as the department considers necessary
to carry out this article including the random splitting of samples.
4. Store blood, urine and saliva samples in a frozen state or in any other
appropriate manner by which they may be preserved for future analysis.
5. Perform tests on horses or dogs that die while on property under the
jurisdiction of the department.
6. Analyze samples of urine, blood or saliva taken immediately after a race from
the horse that won the race to determine if the horse has been drugged. The department
may additionally analyze samples of any other animal entered in a race.
7. Analyze samples of urine or saliva taken either immediately prior to or after a
race from the dog that won the race to determine if the dog has been drugged. The
department may additionally analyze samples of any other animal entered in a race.
B. The veterinarian authorized by the department may order the taking and analysis
of samples from a losing favorite or from any other horse or dog when the veterinarian,
based upon the performance of the horse or dog in the race, has probable cause to believe
that the horse or dog has been drugged or desensitized. If a blood sample is required,
the veterinarian shall take the sample.
C. The identity of any horse or dog determined under this section to be drugged or
desensitized shall, in accordance with such procedures as the commission prescribes by
regulation, be reported to a steward and the appropriate county attorney. If any horse
or dog is not made available in accordance with such regulations as the commission
prescribes for any test or inspection required under this section the identity of such
horse or dog shall be reported to a steward.
D. A permittee shall, in accordance with regulations prescribed by the commission,
provide the testing personnel with adequate space and facilities so that the inspections,
tests and other procedures described in subsection A may be performed. Access to such
space and facilities shall be restricted in accordance with regulations prescribed by the
commission.
E. Testing personnel may detain for a period of not to exceed twenty-four hours for
examination, testing or the taking of evidence any horse or dog at a race which is
drugged or desensitized or which such person, based upon the results of an inspection,
test or other procedure conducted under this section, has probable cause to believe is
drugged or desensitized. Any horse or dog which is detained may not be moved during such
detention from the place where the horse or dog is detained except as authorized by
testing personnel pursuant to rule and regulation of the commission.
F. The department shall retain for three years copies of all post-mortem reports on
animals. The department shall retain all such reports which are used as evidence in a
judicial proceeding at least until the conclusion of the proceeding.
5-106 Supervisor of mutuels; pari-mutuelauditors; other employees; stewards
A. The director shall appoint a supervisor of mutuels, security personnel and as
many other employees as may be necessary for the enforcement of the laws of this state
and the rules relating to racing.
B. The director shall determine which employees shall give bond to the state for
the faithful performance of their respective duties in such amount as the department
shall prescribe. The cost of providing the bonds shall be a charge against the state.
C. The compensation of employees shall be as determined pursuant to section 38-611.
D. The director shall keep a record of all proceedings and preserve all books,
documents and papers of the commission and department.
E. The supervisor of mutuels shall monitor the wagering and the pari-mutuel
departments at all racing meetings and additional wagering facilities and shall enter
into no other employment or contracts of employment involving racing or pari-mutuel
wagering either within or without the state during days of racing in the state.
F. The security personnel appointed by the director shall assist in keeping the
peace at all racing meetings and additional wagering facilities, shall enforce all laws
of the state relating to racing and all rules of the commission and shall perform such
other duties as the commission or director shall prescribe and in the discharge of their
duties shall have the authority of peace officers.
G. The director shall establish a security section charged with the responsibility
for investigative matters relating to the proper conduct of racing and greyhound
breeding, inspections of off-track kenneling of greyhounds used, trained or bred for
racing purposes and pari-mutuel wagering including barring undesirables from racing,
undercover investigations, fingerprinting persons licensed by the department and
reviewing license applications. The person in charge of the security section shall have
at least five years of experience in law enforcement or in conducting or supervising
investigations in some aspect of racing law enforcement.
H. For purposes of inspecting off-track greyhound training or breeding facilities,
the director may request and accept volunteer assistance from a member or representative
of the national greyhound association in any instance in which the director believes
specialized knowledge or advice may be useful or necessary in the enforcement of this
chapter.
I. If upon investigation by the department there is substantial evidence indicating
that the security at any track or additional wagering facility is not satisfactory, the
director may order the permittee to remedy the deficiency. If after ten days following
such order the permittee has not remedied the deficiency, the department may institute
its own security personnel program until the deficiency in security is remedied and may
charge the permittee the actual costs incurred therefor. The permittee may petition the
department for a hearing at any time to review the necessity of the department further
maintaining its own security personnel.
J. Persons employed by the department as investigators must have training in a
general investigation course, including instruction in appropriate ARIZONA law, conducted
or approved by the director.
K. For each horse, harness or dog racing meeting, the director shall, with the
approval of the commission, employ two persons qualified as stewards. For each horse,
harness or dog racing meeting, the permittee shall, with the approval of the commission,
employ one person qualified and licensed by the department as a steward. An applicant
who wishes to be licensed or employed as a steward by the department for a commercial
horse or harness racing meeting must be certified as a steward by a national organization
approved by the department. Beginning on January 1, 2000, an applicant who wishes to be
licensed or employed as a steward by the department for a commercial dog racing meeting
must be certified as a steward by a national organization approved by the department. An
applicant as a steward for a commercial horse or harness racing meeting exceeding
forty-five days shall have been employed as a steward, patrol judge, clerk of scales or
other racing official at a horse or harness racing meeting for a period of not less than
forty-five days during three of the past five years, or have at least five years'
experience as a licensed jockey who has also served not less than one year as a licensed
racing official at a horse or harness racing meeting, or have ten years' experience as a
licensed horse trainer who has also served not less than one year as a licensed racing
official at a horse or harness racing meeting. The director shall designate one of the
two stewards employed by the department pursuant to this section as chief steward for
each horse, harness or dog racing meeting. The director shall designate the remaining
stewards as assistant stewards. A person employed by the department as a steward
pursuant to this subsection is considered an exempt state employee and not a state
service employee subject to title 41, chapter 4, articles 5 and 6. Stewards employed by
the department pursuant to this section are eligible to receive compensation pursuant to
section 38-611. For each horse, harness or dog racing meeting conducted by a county fair
racing association, the director shall, with the approval of the commission, employ three
persons qualified as stewards. The director shall designate one of the three stewards as
chief steward for each horse, harness or dog racing meeting conducted by a county fair
racing association, and shall designate the remaining stewards as assistant stewards.
5-107.01 Necessity for permits for racing meetings; licenses for officials and other persons
A. A person, association or corporation shall not hold any racing meeting without
having first obtained and having in full force and effect a permit that is issued by the
department.
B. No trainer, driver, jockey, apprentice jockey, horse owner, dog owner, greyhound
racing kennel owner or operator, breeder of racing greyhounds, exercise boy, agent,
jockey's agent, stable foreman, groom, valet, veterinarian, horseshoer, steward, stable
watchman, starter, timer, judge, food and beverage concessionaire, manager or other
person acting as a participant or official at any racing meeting including all employees
of the pari-mutuel department and any other person or official the department deems
proper shall participate in racing meetings without having first obtained and having in
full force and effect a license or credentials that are issued by the department,
pursuant to such rules as the commission shall make. The department shall not revoke a
license except for cause and after a hearing. For the purposes of this subsection,
participate in a dog racing meeting includes breeding, raising and training a dog and
certifying as an ARIZONA bred dog.
C. Each person, association or corporation that holds a permit or a license under
this chapter shall comply with all rules and orders of the commission or department.
D. Any credential or license that is issued by the department to a licensee shall
be used only as prescribed by commission rule or order of the director. Use for purposes
other than those prescribed is grounds for suspension or revocation or imposition of a
civil penalty as provided in section 5-108.02, subsection E.
E. All applicants for a permit or license shall submit to the department a full set
of fingerprints, background information and the fees that are required pursuant to
section 41-1750. The department of racing shall submit the fingerprints to the department
of public safety for the purpose of obtaining a state and federal criminal records check
pursuant to section 41-1750 and Public Law 92-544. The department of public safety may
exchange this fingerprint data with the federal bureau of investigation. The applicant
shall pay the fingerprint fee and costs of the background investigation in an amount that
is determined by the department. For such purpose the department of racing and the
department of public safety may enter into an intergovernmental agreement pursuant to
title 11, chapter 7, article 3. The fees shall be credited pursuant to section 35-148.
F. The director may issue a temporary license to an owner, trainer, driver or
jockey who is duly licensed in another jurisdiction for special races or special
circumstances for a period of not to exceed thirty days. The director may allow a
trainer so licensed to complete an application for a temporary license for an owner if
the owner is not immediately available to personally submit the application.
G. A licensed owner, lessee or trainer of a qualified horse who has applied to a
permittee to be stabled at a track and who has not been granted a stall shall not be
prohibited from bringing the horse on the race grounds for the purpose of entering the
animal in races that are held by the permittee or for the purposes of qualifying to race
solely for the reason that the animal is not being stabled at the track if the owner,
lessee or trainer is in compliance with rules adopted by the commission. No dog racing
permittee may prohibit a licensed owner or a licensed lessee of a qualified animal who
has applied to be kenneled at the track and who has not been granted a kennel to enter
the animal in races that are held by the permittee and to bring the animal on the track
for purposes of qualifying to race or to race solely for the reason that the animal is
not being kenneled at the track.
5-107.02 Qualification for eligibility of racing meeting operator
No person, association or corporation is eligible to operate a racing meeting with a
permit issued under this chapter unless he is an owner or the lessee of the track named
in the permit. A permit shall not be issued to any corporation or association unless the
corporation or association in its application for the permit has specifically named the
manager who will operate the racing meeting, has supplied the department with all
relevant information concerning this manager including his relationship with the
corporation or association, any previous experience in the racing field, and any other
relevant and material information the commission may have requested, and has obtained the
commission's approval of the manager so named in the application.
5-107.03 Separate financial records of permittee and concessionaire; violations
A. Each permittee and each concessionaire who has a proprietary interest in a
permit shall keep separate financial books, statements and records with respect to the
operations conducted by him at each particular place, track, additional wagering
facility or enclosure. A commercial racing permittee and concessionaire shall keep and
maintain the financial books, statements and records in accordance with generally
accepted accounting principles so as to reflect accurately the operations conducted by
each permittee and concessionaire who has a proprietary interest in a permit. A county
fair racing association may keep and maintain the financial books, statements and records
on a cash basis on approval of the department. Such financial books, statements and
records shall be open for examination by the director or his designated representative.
B. All financial information that is given by a commercial racing permittee or
concessionaire to any state agency, body or department shall accurately reflect the total
income of each permittee and concessionaire who has a proprietary interest in a permit
from each particular place, track or enclosure.
C. Any violation of this section by any permittee is a ground for refusal to renew
or for the revocation of a permit only after written notice to the permittee and a full
hearing thereon.
5-107 Nature of racing meeting permits;application for permit; cash deposit; return; bond; conditions andpriorities for satisfaction of bond
A. Permits to conduct racing meetings are deemed to be personal in nature, are
nontransferable and shall terminate upon a substantial change of ownership of the
permittee. The sale or transfer of twenty-five per cent or more of the equity of a
permittee shall be considered a substantial change of ownership. Nothing in this
subsection shall be construed so as to cause the termination of a permit upon the death
of the permittee, or if a corporation, the death of a shareholder thereof, during the
period for which such permit was granted.
B. Every applicant making application for a permit to hold a racing meeting shall
file an application with the commission. The commission shall promulgate rules and
regulations regarding application procedures. The application shall include:
1. The full name and address of the applicant, and if a corporation, the name of
the state under which it is incorporated. If such applicant is an association or
corporation, the residence addresses of the members of the association and the names of
all directors of the corporation shall be included, and the stock certificate records of
such applicant shall be made available to the department upon request of the
director. The department shall be notified within ten days of the election of any new
officer or director of a permittee, and the identity of every person who acquires ten per
cent or more of a permittee's equity or interest. Each new officer, director or
substantial owner shall furnish all information requested by the department to facilitate
approval of his participation in racing in this state.
2. The exact location where it is desired to conduct or hold a racing meeting.
3. A statement as to whether or not the racing plant is owned or leased, and if
leased, the name and residence of the fee owner, or if a corporation, the names and
addresses of the directors of the corporation.
4. A complete financial statement and balance sheet of the person, corporation or
other business entity making such application, completed and certified by a certified
public accountant. In the case of applications for renewal of dog racing meeting permits
which were in existence before May 5, 1972, such financial statement and balance sheet
shall be on a calendar year basis. In the case of applications for renewal of horse or
harness racing meeting permits which were in existence before May 5, 1972, such financial
statement and balance sheet shall be on a fiscal year basis. In the case of all new
permit applications made from and after May 5, 1972, and renewal applications of such
permits, such financial statement and balance sheet shall be on either a calendar year or
fiscal year basis, at the discretion of the department. In addition, the application
shall identify any guarantors or any indebtedness of the applicant, and the department
shall be provided, upon request, with a statement from a certified public accountant
certifying that the net worth of any guarantor or guarantors is at least equal to the
amount of the unpaid indebtedness so guaranteed. Applications for racing meetings
operated by county fair racing associations are exempt from this paragraph.
5. A complete list of all management and concession contracts in effect at the time
of the application, copies of which shall be furnished to the department upon
request. If the applicant is granted a permit he shall further be required, upon the
request of the department, to submit a complete list of all subsequent management and
concession contracts, and copies of such contracts shall be submitted to the department
upon request.
6. Such other relevant and material information pertaining to the application as
the department may require.
C. Not less than ten days prior to the commencement of a commercial racing meeting,
the permittee shall submit to the department a cash deposit in such amount, but not to
exceed five thousand dollars, as the director deems necessary to insure payment of fees
and the amount due the state as the percentage of pari-mutuel receipts payable to the
state as prescribed by law. Upon termination of the racing meeting, the deposit shall be
returned to the applicant, less any fees or pari-mutuel receipts remaining unpaid.
D. In addition to the cash deposit and prior to the issuance of a racing meeting
permit, the applicant shall deposit with the department a bond payable to the state for
the benefit of the state and any person covered by this section, in such amount, but not
to exceed one hundred thousand dollars in the case of dog racing meeting permittees, and
not to exceed three hundred thousand dollars in the case of horse or harness racing
meeting permittees, as the director deems necessary, with a surety or sureties to be
approved by the department and the attorney general and conditioned in accordance with
the following order of priorities:
1. That the permittee shall first faithfully pay to the state the percentage of the
pari-mutuel receipts, as applicable, prescribed by law and all taxes due to the state.
2. That thereafter the permittee shall pay to the owner thereof all funds held by
the permittee for the account of such owner, including purses won, if such owner is or
has been licensed by the department.
3. That thereafter the permittee shall pay all salaries and wages due to the
employees of such permittee in connection with the conduct of the racing meeting.
4. That thereafter the permittee shall pay all amounts due to the breeder of any
horse or dog for a breeder's award.
E. Any person, including the state, claiming against the bond may maintain an
action at law against the permittee and the surety or sureties, and the surety or
sureties may be sued upon the bond in successive actions until the penal sum thereof is
exhausted. If it appears that there is more than one claim upon such bond or if it
appears that the state may have an interest therein, the state or any other claimant may
move the court in which such actions are filed to intervene or to consolidate such
actions to determine the priority order of claims in accordance with subsection D. No
suit may be commenced upon the bond after the expiration of one year following the day of
the closing of the racing meeting during which any act or failure to act giving rise to a
claim against the bond shall arise.
F. The bond prescribed by this section shall be effective for the period of the
racing permit granted by the commission, and the liability of the surety for all claims
shall be limited to the face amount of the bond. If the surety desires to make payment
without awaiting court action, the amount of any bond filed in compliance with this
chapter shall be reduced to the extent of any payments made by such surety in good faith
thereunder. Any such payment shall be based first upon the priority of claim order as
established by subsection D and thereafter upon the priority of the date the written
claims are received by the surety prior to court action.
5-108.01 Hearing on application for or renewal of original permit; notice of hearing; decisions of commission and director; appeal; transfer of permit
A. The commission shall hold a public hearing on an original application for a
racing permit or renewal of a current racing permit under this article. At least fifteen
days' notice shall be given to all permittees holding a permit, and they may appear and
be heard as parties in interest upon the hearing of an application.
B. The commission may provide by rule for rehearings of any final decision of the
department in accordance with section 5-104, subsection D. Except as provided in section
41-1092.08, subsection H, the parties to the proceeding before the commission or
department may commence an action in the superior court in Maricopa county after a
decision of the commission or director has become final to review the decision pursuant
to title 12, chapter 7, article 6. Pending determination of the appeal, the decision and
order shall remain in full force and effect, and may not be superseded.
C. The commission shall not approve an original permit to conduct a horse racing,
harness racing or dog racing meeting at any place, enclosure or track not used for racing
purposes pursuant to permits actually issued as authorized by law prior to February 1,
1971, unless before the beginning of construction or preparation of the place, enclosure
or track the commission determines that each of the following applies:
1. The conducting of horse, harness or dog racing meetings at such place will serve
the public interest, convenience or necessity.
2. The plan of racing is economically feasible.
3. The issuance of a permit is in the best interest of racing and this state
generally.
D. No place, enclosure or track used for horse, harness or dog racing on or before
February 1, 1971 may be used for any other type of animal racing, except that in counties
with a population of less than seven hundred thousand persons as shown by the last United
States census, a place, enclosure or track used for one type of animal racing may be used
for any other type of animal racing. In considering an application for a permit under
this section, the commission shall give consideration to the number and location of
existing tracks, the number of permits already granted and the economic effect the
granting of a new permit may have on existing tracks and permittees and the revenues of
this state.
E. If the owner or lessee of any place, enclosure or track used for racing purposes
pursuant to permits issued as authorized by law on or before February 1, 1971 is
obligated for any reason to abandon the use of the place, enclosure or track, the owner
or lessee may transfer the use and rights to use the premises for racing purposes to any
other location in the same county. 5-108.02 Revocation of permits; penalties
A. The commission may revoke the permit of any permittee upon any of the grounds
upon which the commission could refuse to approve a permit in section 5-108 or who has
failed to pay the department all sums required under this chapter.
B. The commission may revoke the permit to hold a racing meeting of any corporate
permittee which transfers ten per cent of its stock after a permit to hold a racing
meeting is issued, and before the termination of the permit period, except as authorized
in section 5-108, subsection A, paragraph 2, subdivision (d).
C. Revocation shall be made only after a hearing before the commission for which
ten days' notice in writing by certified mail has been given to the permittee specifying
the grounds for the proposed revocation.
D. At the hearing, the permittee shall be given an opportunity to be heard and
present evidence in opposition to the proposed revocation.
E. When the grounds exist for the imposition of a civil penalty or revocation of a
permit issued pursuant to this chapter the department may impose a civil penalty, not to
exceed five thousand dollars per day nor more than a total of twenty-five thousand
dollars, on the permittee in lieu of or in addition to revocation of the permit by the
commission. The department in addition to any criminal penalties provided in this
chapter may levy a civil penalty as to a permittee in an amount not to exceed five
hundred dollars for violation of any provision of this chapter or rule or regulation
adopted pursuant to this chapter which does not constitute grounds for revocation of a
permit. All sums paid to the department pursuant to this subsection shall be deposited
in the general fund.
5-108.03 Restrictions on ownership of licenses, permits and tracks; exemptions; sale for fair market value
A. From and after December 31, 1978, no person, firm, partnership, corporation or
association or any affiliate thereof shall simultaneously hold or have an ownership
interest, direct or indirect, in permits to conduct racing meetings at more than four
racetracks within this state. For the purpose of this chapter a person, firm,
partnership, corporation or association holding or having an ownership interest, direct
or indirect, in a place, enclosure or track at which a racing meeting is conducted in
this state shall be considered as holding an ownership interest in the permit or permits
issued for a racing meeting at such location. This subsection shall not apply with
respect to a corporation unless the person, firm, partnership, corporation or association
otherwise subject to the provisions of this subsection owns or controls ten per cent or
more of any class of stock of such corporation.
B. From and after December 31, 1978, no person, firm, partnership, corporation or
association or any affiliate thereof, which holds or has an ownership interest, direct or
indirect, in a permit to conduct a racing meeting within a county having a population of
three hundred thousand persons, or more, as shown by the last United States decennial
census, shall simultaneously hold or have any ownership interest, direct or indirect, in
a permit to conduct the same kind of racing within any other county having a population
of three hundred thousand persons, or more, as shown by the last United States decennial
census.
C. Any person, firm, partnership, corporation or association which on the effective
date of this section holds or has an ownership interest in permits in excess of the
limits specified in subsections A and B shall use diligent effort to dispose of such
excess holdings and interests prior to January 1, 1979. If such person, firm,
partnership, corporation or association has failed to receive a reasonable offer,
containing adequate security provisions, for the acquisition of such excess holdings or
interest at the fair market value thereof prior to January 1, 1979, the department shall
grant an extension of the affected permits for a one-year period. At the expiration of
such extension, the department shall grant additional one-year extensions but in no event
shall the department grant more than three extensions for an affected permittee. Upon
the disposal of such excess holdings and interest or expiration of the maximum number of
extensions authorized, the limitations set forth in subsections A and B shall apply.
D. For the purposes of subsections A, B and C, a person, firm, partnership,
corporation or association shall be considered as itself holding or having any ownership
interest held directly or indirectly by its affiliates. For the purposes of this
chapter, one person, firm, partnership, corporation or association shall be considered
the affiliate of another person, firm, partnership, corporation or association if any of
the following applies:
1. They are either directly or indirectly under common control.
2. Any officer, director, manager, partner, supervisor, substantial stockholder,
owner, trustee or administrator of one such person, firm, partnership, corporation or
association is an officer, director, manager, partner, substantial stockholder, owner,
trustee or administrator of the other person, firm, partnership, corporation or
association. For the purposes of this paragraph, a substantial stockholder is one who
owns at least ten per cent of the issued and outstanding stock of a corporation.
3. They, at any time, within an immediately preceding three-year period, have each
had a substantial ownership interest in the same permittee authorized to conduct a racing
meeting in this state. For the purposes of this paragraph, the direct or indirect
ownership of ten per cent or more of the equity of a permittee shall be considered a
substantial ownership interest.
4. Notwithstanding the provisions of paragraph 3 of this subsection, any persons,
firms, corporations, partnerships or affiliates thereof having a substantial ownership
interest in the same permittee authorized to conduct a racing meeting in this state
during 1976 shall be considered to be affiliates for purposes of subsections A and B
until January 2, 1979, or until the termination of any extension granted by the
department pursuant to subsection C, whichever period is longer. For the purposes of
this paragraph, the direct or indirect owner of ten per cent or more of the equity of a
permittee shall be considered a substantial ownership interest.
E. For purposes of determining interest in a permit or permittee, insofar as such
determination is based on stock ownership:
1. Stock owned, directly or indirectly, by or for a corporation, partnership,
estate or trust shall be considered as being owned proportionately by its shareholders,
partners or beneficiaries.
2. An individual shall be considered as owning the stock owned, directly or
indirectly, by or for his family or by or for his partner. For purposes of this section,
the family of an individual includes only his brothers and sisters, whether by the whole
or half blood, spouse, ancestors and lineal descendants.
3. Stock constructively owned by a person by reason of the application of paragraph
1 of this subsection shall, for purposes of applying paragraph 1 or 2 of this subsection,
be treated as actually owned by such person. Stock constructively owned by such person
by reason of the application of paragraph 2 of this subsection shall not be treated as
owned by him for purposes of again applying paragraph 2 of this subsection in order to
make another the constructive owner of such stock.
5-108.04 Restrictions on loans; exemptions
From and after December 31, 1978, or from and after the termination of any extension
period granted by the department pursuant to section 5-108.03, whichever time is later,
no permittee or affiliate thereof shall borrow from or accept loans or guarantees of
loans from any licensed food and beverage concessionaire or any affiliate thereof, or
make payments pursuant to any such loans, except that a permittee may accept loans or
guarantees of loans, and may make payments pursuant to such loans, from a food and
beverage concessionaire which is an affiliate of such permittee.
5-108.05 Revocation and suspension of licenses; probation; civil penalties; exception
A. Except as provided by subsections C and D of this section the department may
revoke or suspend the license of a licensee or impose probation requirements or a civil
penalty, or any combination of these sanctions, based on any of the grounds for which the
department could refuse to issue a license pursuant to section 5-108 or for a violation
of any provision of this article or the rules of the commission or department.
B. The department shall suspend or revoke a license only after a hearing before the
department pursuant to rules adopted by the commission.
C. Except as provided in subsection E of this section, the department shall revoke
for a period of not to exceed one year the license of any person who commits an initial
violation of any provision of section 5-115. If the licensee is a corporation, the
department shall revoke the license if the corporation is controlled or operated directly
or indirectly by such a person.
D. Except as provided in subsection E of this section, the department shall revoke
permanently the license of any person who commits a subsequent violation of any provision
of section 5-115.
E. The department may impose a lesser penalty or sanction authorized by this
article for a violation of a rule with respect to medication if the department finds by
clear and convincing evidence that the permitted medication or medication which reduces
exercise induced pulmonary hemorrhage which is revealed in a sample or test was
administered to the animal in a lawful manner.
5-108 Issuance of permit or license; groundsfor refusal to issue; nontransferable; renewal
A. The department shall conduct a thorough investigation concerning the application
for a permit or a license and:
1. The department may refuse to issue or renew a license or the commission may
refuse to approve or renew a permit for any applicant if there is substantial evidence to
find that the applicant:
(a) Has been suspended or ruled off a recognized course in another jurisdiction by
the racing board or commission thereof.
(b) Is not of good repute and moral character.
(c) Has, when previously licensed or granted a permit, violated the racing laws of
this state or of any other state or the regulations of the commission.
(d) Is a corporation, firm or association not duly qualified and authorized to
conduct business within this state.
(e) If an individual, has been convicted of a felony or any crime involving moral
turpitude, or, if a corporation, firm or association, is controlled or operated directly
or indirectly by a person or persons who have been convicted of a felony or any crime
involving moral turpitude.
(f) If an individual, is engaged in or has been convicted of wagering by other than
the mutuel method or in pool selling or bookmaking in any state of the United States or
foreign country where such other method, pool selling or bookmaking is illegal or, if a
corporation, firm or association, is controlled or operated directly or indirectly by a
person who is engaged in or has been convicted of wagering by other than the mutuel
method or in pool selling or bookmaking in any state of the United States or foreign
country where such other method, pool selling or bookmaking is illegal.
(g) Has wilfully violated any provision of this chapter or any of the rules and
regulations of the commission.
(h) Should not, in the best interest of the safety, welfare, economy, health and
peace of the people of the state, be granted a license or permit.
(i) Has entered into any contract or contracts which will not further the best
interests of racing or be in the public interest or, in the case of permittees or
applicants for permits to conduct racing meetings, has failed to file with the department
a contract, as an addendum to an application for a permit to conduct a racing meeting,
providing for food and beverage concession rights, if any, at such racing meeting. A
food and beverage concessionaire contract filed with the department pursuant to this
section shall be available to the public upon request.
(j) Has failed to inform the department on or before May 15 of each year in writing
of any material change, occurring during the immediately preceding year of the license or
permit term, in the information supplied by the applicant in the application, for a
license or permit. In the event that a licensee or permittee fails to file such
information, the department shall notify the licensee or permittee of such failure to
file and the licensee or permittee shall have an additional fifteen days, after the
notice is mailed to the last known address of such licensee or permittee, to file such
information.
2. The commission may refuse to approve or renew a permit to conduct a racing
meeting or a food and beverage concessionaire license for any ground set forth in
paragraph 1 of this subsection or if there is substantial evidence to find that:
(a) The applicant is not possessed of or has not demonstrated financial
responsibility sufficient to meet adequately the requirements of the enterprise proposed
to be authorized.
(b) The applicant is not the true owner of the enterprise proposed to be granted a
permit, that other persons have ownership in the enterprise which fact has not been
disclosed or, if the applicant is a corporation, that ten per cent of the stock of such
corporation is subject to a contract or option to purchase at any time during the period
for which the permit is issued unless the contract or option was disclosed to the
department and the department approved the sale or transfer during the period of the
permit.
(c) The granting of a permit or license in the locality set out in the application
is not in the public interest or convenience.
(d) The applicant, if a corporation or any holder of more than ten per cent of the
outstanding stock of any class, transferred, pledged or in any other way collateralized
any of its stock after an application for a permit or license was filed with the
department, without prior department approval. The provisions of subdivision (b) and
this subdivision shall not apply to day-to-day transfers of stock of a publicly held
corporation unless the transfer, or a combination of transfers, involves a controlling
interest in or affects the operational control of the corporation, or involves ten per
cent or more of any class of stock of the corporation owned by the controlling
shareholders or the manager of any racing meeting.
(e) The applicant has, or if the applicant is a corporation, its officers,
managerial employees, directors or substantial stockholders have, committed acts of moral
turpitude in this state or have willfully violated a material racing statute of this
state or a material rule or regulation of the commission. If the commission makes such a
finding, with respect to an officer, managerial employee, director or substantial
stockholder, the applicant may be denied a permit only upon the failure to remove the
officer, managerial employee or director or the failure of the substantial stockholder to
sell its stock interest. For purposes of this subdivision a substantial stockholder is
one who owns ten per cent of the issued and outstanding stock of the applicant.
3. The department may deny or refuse to renew a license or the commission may
refuse to approve or renew a permit for any person who has made a knowingly false
statement of a material fact to the department.
4. The department may deny or refuse to renew a license or the commission may
refuse to approve or renew a permit to any applicant if such applicant has failed to meet
any monetary obligation in connection with any racing meeting held in this state.
5. The department shall refuse to issue or renew a license or the commission shall
refuse to approve or renew a permit for any applicant if there is substantial evidence to
find that the applicant, if an individual, has been convicted within the last five years
of a felony or any crime involving moral turpitude or, if a corporation, firm or
association, is controlled or operated directly or indirectly by a person or persons who
have been convicted within the last five years of a felony or any crime involving moral
turpitude.
B. The department in conducting the investigation referred to in this section shall
have the full cooperation of all state agencies and departments, including the department
of public safety, and such agencies and departments shall make their personnel available
to the department, upon request.
C. If the commission determines that the applicant for a permit, whether such
applicant is a lessee or an individual or corporate owner of the tracksite, meets the
requirements prescribed by this article and the rules and regulations of the commission,
it shall approve the permit. The permit shall be approved for a period of not to exceed
three years, except that the commission may at its discretion approve a permit for a
period of not to exceed five years for an applicant who has not previously been granted a
permit pursuant to this section and who purchases an excess holding and interest required
to be sold pursuant to section 5-108.03. Any renewal of a permit shall be pursuant to
subsection D of this section.
D. Except as provided by subsection C of this section, permits shall be renewed for
successive periods of not more than three years unless the commission revokes the permit
or refuses to renew the permit for any of the grounds enumerated in this section or
section 5-108.03. The renewal of a permit shall be denied only after a full hearing and
a finding of good cause for refusing renewal has been made by the commission.
E. The director shall suspend or revoke a license or the commission shall deny or
revoke a permit of a person who intentionally provides false information to the
department or any other governmental agency concerning his criminal history
background. The director may suspend or revoke a license or the commission may deny or
revoke a permit of a person who negligently or recklessly provides false information to
the department or any other governmental agency concerning his criminal history
background.
F. Except as provided by this subsection, the director may grant a license or the
commission may approve a permit to engage in the racing industry in this state only after
all necessary investigation of the background of the applicant required by this article
has been completed. A temporary permit approved by the commission or a temporary license
valid for a period of not to exceed ninety days may be issued by the director prior to
the time the investigation of the background of the applicant for the license or permit
has been completed. After a temporary license or permit has been issued, the director
may suspend or revoke a temporary license or the commission may revoke a temporary permit
for any reason which would be grounds to refuse to issue, approve or renew a license or
permit under the provisions of subsection A of this section.
5-109.01 Requirements of permittee regarding ARIZONA bred horses and dogs; powers of commission
A. A permittee, in addition to all other requirements, shall:
1. Admit to qualifying or official schooling races any horse that is foaled in this
state or any dog that is whelped and raised six months of the first year in this state at
a facility licensed by the department and that is:
(a) Of suitable racing age.
(b) Physically qualified and registered pursuant to department requirements.
(c) Owned by a resident of this state, who has been engaged for at least two
consecutive years, in this state, in the business of breeding, racing, raising or
training horses or dogs for racing purposes.
2. Adopt no rule which discriminates in any way against a resident of this state
who is engaged in this state in the business of breeding, racing, raising or training
horses or dogs for racing purposes.
B. Failure of a permittee to comply with subsection A constitutes grounds for
revocation of or refusal to renew any permit.
C. The commission may adopt rules to further the purposes of this section.
5-109 Identification of animals;exemptions
No horse or dog shall take part in any race conducted under this article unless
satisfactorily identified and registered by an association recognized by the
department. A horse shall not be allowed to leave the racetrack premises unless it is
accompanied by the certificate required by section 3-1335 unless:
1. An emergency situation requires immediate removal of the animal from the
premises.
2. The director of the ARIZONA department of agriculture issues special permission
in situations he determines to be in the best interest of the animal.
5-110 Racing days, times and allocations;emergency transfer; county fairs; charity days
A. Permits for horse, harness or dog racing meetings shall be approved and issued
for substantially the same dates allotted to permittees for the same type of racing
during the preceding year or for other dates that permittees request, provided that, in
the event there is a conflict in dates requested between two or more permittees in the
same county for the same kind of racing, the permittee whose application is for
substantially the same dates as were allotted to the permittee in the preceding year
shall be entitled to have preference over other permittees. In the event two or more
permittees have agreed that the dates to be allotted to each of them each year shall be
alternated from one year to the next, the commission shall recognize their agreement and
such permittees may be accorded preference over any other permittee as to those dates to
be allotted to such permittees on an alternating basis. Except as otherwise provided,
the commission shall allot dates to the respective permittees after giving due
consideration to all of the factors involved and the interests of permittees, the public
and this state.
B. The commission may require by the terms of any permit that the permittee offer
such number of races during any racing meeting as the commission shall determine,
provided that the permittee shall be permitted to offer not less than the same number of
races each day as offered in the prior year. The commission shall require each horse
racing permittee to conduct for a period of thirty days a number of races equal to an
average of not less than two races for each day of racing exclusively for quarter
horses. If, in the opinion of the commission, the permittee is offering acceptable
quarter horse races but an honest effort is not being put forth to fill these races by
the horsemen, the commission may rescind the two race per day quarter horse requirement.
C. Live racing and wagering on simulcast races shall be permissible in either
daytime or nighttime, but there shall be no live daytime dog racing on the same day that
there is live daytime horse or harness racing in any county in which commercial horse or
harness racing has been conducted prior to February 1, 1971, and no live nighttime horse
or harness racing on the same day that there is live nighttime dog racing in the same
county. There shall be no wagering on simulcast dog races before 4:15 p.m., mountain
standard time, on the same day that there is live daytime horse or harness racing in any
county in which commercial horse or harness racing has been conducted before February 1,
1971, and no wagering on simulcast horse or harness racing after 7:30 p.m., mountain
standard time, on the same day that there is live nighttime dog racing in the same
county. The hours during which any other dog, harness or horse racing is to be conducted
shall be determined by the commission. The application for a permit shall state the
exact days on which racing will be held and the time of day during which racing will be
conducted.
D. If the commission determines that an emergency has obligated or may obligate a
permittee to discontinue racing at a location, the commission may authorize the permittee
to transfer racing for the number of days lost to any other location.
E. A racing meeting, when operated by a county fair racing association or under
lease during the county fair to any individual, corporation or association, shall not
come under the limitation placed on days of racing in this section.
F. The department shall be the judge of whether a county fair racing meeting is
being operated in accordance with the provisions of this section. A county fair racing
meeting conducted by an individual, corporation or association, other than the properly
authorized county fair racing association, shall come under the general provisions of
this article the same as a commercial meeting. Notwithstanding this subsection, a county
fair racing meeting, whether conducted by a county fair racing association or by an
individual, corporation or association other than a county fair racing association, is
exempt from the requirement prescribed in section 5-111 to pay to the state a percentage
of the pari-mutuel pool collected at the meeting.
G. The commission may allow a permittee, in addition to the days specified in this
permit, to operate up to three racing days during any one meeting as charity days. From
the amount deducted from the total handled in the pari-mutuel pool on charity days, the
permittee shall deduct an amount equal to the purses and the cost of conducting racing on
these days, and shall donate the balance to nonprofit organizations and corporations
which benefit the general public, which are engaged in charitable, benevolent and other
like work and which are selected by the permittee and approved by the department. In no
event shall the amount given to charity from charity racing days be less than the amount
which otherwise would have gone to this state as the state's share on a noncharity racing
day.
H. Notwithstanding any other provision of this chapter, any dog racing permittee to
which a permit to conduct dog racing in this state has been issued may in any racing year
modify the racing date allocations made to the permittee for conducting dog racing at a
track by reallocating up to two-thirds of the racing dates allocated to that permittee
for dog racing at a track to another track in this state at which the permittee or a
corporation of common ownership to the permittee conducts dog racing. For the purpose of
this section a corporation of common ownership to the permittee is a corporation which is
owned or controlled, directly or indirectly, by the same corporation that owns or
controls the permittee and which holds a permit to conduct dog racing in this state.
I. Notwithstanding any other provision of this article, any dog racing permittee
that has offered live dog racing in eight out of ten calendar years from 1980 to 1990 in
counties that have a population of less than five hundred thousand persons according to
the most recent United States decennial census shall be considered as operating a
racetrack enclosure for all purposes under this article and shall not be required to
conduct live racing as a condition of that permittee's racing permit. Any permittee
qualified under this subsection may conduct wagering on telecasts of races conducted at
racetrack enclosures within this state or at racetrack enclosures outside this state
without offering live racing at that permittee's racetrack enclosure.
5-111.01 Breakage; definition; tax; disposition
A. The term "breakage" means the odd cents by which the amount payable on each
dollar wagered in a pari-mutuel pool exceeds a multiple of ten cents, except that in the
case of minus pools breakage means the odd cents by which the amount payable exceeds a
multiple of five cents. A person licensed under this chapter to conduct a racing meeting
shall deduct the breakage from the pari-mutuel pool and such amounts shall be distributed
as provided by law.
B. The breakage deducted by a horse racing or harness racing permittee shall be
distributed as follows:
1. Fifty per cent shall be retained by the permittee.
2. Twenty-five per cent shall be retained by the permittee and used to supplement
the general purse structure.
3. Twenty-five per cent shall be retained by the permittee to supplement purses in
races in which ARIZONA bred horses are winners.
C. The breakage deducted by a dog racing permittee shall be retained by the dog
racing permittee.
5-111.02 Capital improvements at horse tracks; reduction in percentage to state; approval by commission; definition
A. To encourage the improvement of racing facilities for the benefit of the public,
breeders and horse owners, and to increase the revenue to the state from the increase in
pari-mutuel wagering resulting from such improvements, the percentage paid by a permittee
to the state as provided in section 5-111, subsection D shall be reduced by one per cent
of the total amount wagered in connection with all racing meetings conducted in counties
having a population of five hundred thousand persons or more, according to the most
recent United States decennial census, and by two per cent of the total amount wagered in
connection with all racing meetings conducted in all other counties for those permittees
who make capital improvements to racetracks and such amount shall be retained by the
permittees making such capital improvements. When a permittee other than the permittee
making the capital improvements, such as a lessee, is authorized to conduct racing at the
facility being improved, the percentage paid by such permittee to the state as provided
in section 5-111, subsection D shall be reduced by one per cent of the total amount
wagered and such amount shall be paid by such permittee to the permittee making the
capital improvements.
B. In order to qualify for the reduction in percentage, a permittee shall first
apply to the commission in such form as the commission may require. The application
shall contain, but is not limited to, full details of the proposed capital improvement
and the cost and expenses to be incurred, economic justification for approval of the
application by an estimate of the additional pari-mutuel revenues accruing to this state
as the result of the proposed capital improvement, a description of any public safety
concerns to be resolved by the proposed capital improvement and a management and
construction plan for the indicated capital improvement, including:
1. The approach and structure of construction management.
2. Construction schedules and detailed cost estimates.
3. Construction progress and cost revision reporting systems.
C. More than one capital improvement at a horse track may be consolidated in one
application. Following receipt of the application the commission shall either approve or
disapprove the application within forty-five days thereafter and shall, within ten days
of taking action on the application, transmit a copy of the application and notification
of the action taken by the commission on the application to the president of the senate
and speaker of the house of representatives. If the application submitted by the
permittee is approved by the commission, the permittee qualifies for the decrease in
percentage prescribed by subsection A of this section. The commission shall not approve
an application submitted pursuant to this subsection unless the commission determines
that the capital improvement will promote the safety of racing horses or increase the
safety, convenience or comfort of the people and is in the best interest of horse racing
and this state generally. If the commission approves an application submitted pursuant
to this section, the director shall conduct periodic inspections of the capital
improvement at least monthly during the construction period of the capital improvement in
order to ascertain compliance with the permittee's application. In the event that such
approved project has not commenced within one year following approval by the commission,
unless such period is extended by the commission, the funds not expended pursuant to the
approval of the commission shall revert to the general fund of the state and a decrease
in the percentage paid to this state by reason of the approval of the commission shall
terminate. The commission may suspend or revoke the authority of the permittee to expend
capital improvement monies for failure to comply with the capital improvement application
approved pursuant to this subsection. The permittee shall notify the commission of the
completion of construction on each capital improvement authorized pursuant to subsection
B of this section.
D. Except as provided in subsection H of this section, the decrease in percentage
paid to this state by the permittee pursuant to this section starts from the date horse
racing is first conducted following the date of approval by the commission of the
permittee's application for the funding of a capital improvement at the horse track and
continues until sufficient funds have been obtained for completion of the capital
improvement approved by the commission.
E. Following commission approval of an application for funding of a capital
improvement at a horse track pursuant to this section, the permittee shall set aside in a
separate capital improvement escrow or trust account all monies retained from the
decrease in the state's share. The monies in the account and any interest on the monies
may be used only for the capital improvement previously approved by the commission. The
permittee shall provide to the commission quarterly reports on a form prescribed by the
director which show for the previous calendar quarter:
1. Payments to and expenditures from each capital improvement or trust account
established pursuant to this section.
2. The progress of construction on the capital improvement approved by the
commission.
F. The cost of a capital improvement shall be determined by generally accepted
accounting principles and verified upon completion of the project by an audit of the
permittee's records conducted by the auditor general acting at the instructions of the
commission or an independent certified public accountant selected by the permittee and
approved by the commission.
G. In this section, unless the context otherwise requires, "capital improvement"
means an addition, replacement or remodeling of a racetrack facility involving an
expenditure of at least fifty thousand dollars. Capital improvement also includes
architectural and design expenses directly related to such addition, replacement or
remodeling, whether incurred before or after project approval by the commission. Capital
improvement does not include the cost of ordinary repairs and maintenance required to
keep a racetrack facility in ordinary operating condition and does not include
operational expenses, but may include the direct acquisition of water trucks and
tractors.
H. In counties with a population of less than five hundred thousand persons
according to the most recent United States decennial census, a decrease in the percentage
paid to this state by the permittee pursuant to this section shall not begin until from
and after June 30, 1995.
I. This section expires on June 30, 1992 for counties with a population of five
hundred thousand persons or more according to the most recent United States decennial
census. This section expires on June 30, 1999 for counties with a population of less
than five hundred thousand persons according to the most recent United States decennial
census. Projects approved prior to either of these dates may continue until their
completion under the terms of this section and the decrease in percentage paid to the
state by the permittee shall continue until sufficient funds have been obtained for
completion of the approved capital improvement.
5-111.03 Capital improvements at dog tracks; approval by commission; reports; definitions
A. To encourage the improvement of racing facilities for the benefit of the public
and dog owners, and to increase the revenue to this state from the increase in
pari-mutuel wagering resulting from such improvements, the percentage paid by a permittee
to the state pursuant to section 5-111, subsection B in connection with all racing
meetings conducted by such permittee shall be reduced by one per cent of the total amount
wagered in connection with all racing meetings conducted in counties having a population
of five hundred thousand persons or more, as shown by the last United States census, and
by two per cent of the total amount wagered in connection with all racing meetings
conducted in all other counties for those permittees who qualify for such reduction as
provided in this section, and such amount shall be retained by those permittees. Such
decrease in percentage retained from the racing meets conducted by the permittee at
tracks located in this state for which the permittee holds a permit to conduct dog racing
thereon may be applied to a capital improvement at any of such tracks for which a capital
improvement has been approved. If a permittee other than the permittee making the
capital improvements, such as a lessee, is authorized to conduct racing at the facility
being improved, the percentage paid by the permittee to the state as provided in section
5-111, subsection B shall be reduced as provided in this section and such amount shall be
paid by such permittee to the permittee making the capital improvements. For the purpose
of this section, "permittee" shall include any group of one or more corporations each of
which is the holder of one or more permits to conduct dog racing in this state and all of
which are owned, one by the other, or owned or controlled, directly or indirectly, by the
same corporation.
B. In order to qualify for the reduction in percentage, a permittee must first
apply to the commission on such form as the commission may require. The application
shall contain, but is not limited to:
1. Complete details of the proposed capital improvement as prescribed by the
commission.
2. The cost and expenses to be incurred in completing the capital improvement.
3. Economic justification for approval of the application by an estimate of the
additional pari-mutuel revenues accruing to this state as the result of the proposed
capital improvement.
4. A description of any public safety concerns to be resolved by the proposed
capital improvement.
5. A management and construction plan for the indicated capital improvement,
including:
(a) The approach and structure of construction management.
(b) Construction schedules and detailed cost estimates.
(c) Construction progress and cost revision reporting systems.
More than one capital improvement at a single dog track may be consolidated in one
application.
C. Following receipt of the application, the commission shall either approve or
disapprove the application within forty-five days thereafter and shall, within ten days
of taking action on the application, transmit a copy of the application and notification
of the action taken by the commission on the application to the president of the senate
and the speaker of the house of representatives. If the application submitted by the
permittee is approved by the commission, the permittee qualifies for the decrease in
percentage prescribed by subsection A of this section. The commission shall not approve
an application submitted pursuant to this subsection unless the commission determines
that the capital improvement will promote the safety of racing dogs or increase the
safety, convenience or comfort of the people and is in the best interest of dog racing
and this state generally. If the commission approves an application submitted pursuant
to this section, the director shall conduct periodic inspections of the capital
improvement at least monthly during the construction period of the capital improvement in
order to ascertain compliance with the permittee's application. In the event that such
approved project has not commenced within one year following approval by the commission,
unless such period is extended by the commission, the funds not expended pursuant to
approval of the commission shall revert to the general fund of the state and the decrease
in the percentage paid to this state by reason of the approval of the commission shall
terminate. Where the approved project includes acquisition of a new racetrack facility
site, the funds not expended pursuant to the approval of the commission shall revert to
the general fund of the state if acquisition has not been completed and the project has
not commenced within two years of the approval of the project by the commission unless
such time has been extended by the commission. The commission may suspend or revoke the
authority of the permittee to expend capital improvement monies for failure to comply
with the capital improvement application approved pursuant to this subsection. The
permittee shall notify the commission of the completion of construction on each capital
improvement authorized pursuant to this section.
D. The decrease in percentage paid to the state by the permittee pursuant to this
section starts from the date dog racing is first conducted following the date of approval
by the commission of the permittee's application for the funding of a capital improvement
at the dog track and continues until sufficient funds have been obtained for completion
of the capital improvement approved by the commission.
E. Following commission approval of an application for funding of a capital
improvement at a dog track pursuant to this section, the permittee shall set aside in a
separate capital improvement escrow or trust account all monies retained from the
decrease in the state's share. The monies in the account and any interest on the monies
may be used only for the capital improvement previously approved by the commission. The
permittee shall provide to the commission quarterly reports on a form prescribed by the
director which show for the previous calendar quarter:
1. Payments to and expenditures from each capital improvement or trust account
established pursuant to this section.
2. The progress of construction on the capital improvement approved by the
commission.
F. The cost of a capital improvement shall be determined by generally accepted
accounting principles and verified upon completion of the project by an audit of the
permittee's records conducted by the auditor general acting at the instructions of the
commission or an independent certified public accountant selected by the permittee and
approved by the commission.
G. In this section, unless the context otherwise requires, "capital improvement"
means an addition, replacement or remodeling of a racetrack facility involving an
expenditure of at least fifty thousand dollars. Capital improvement also includes
architectural and design expenses directly related to such addition, replacement or
remodeling whether incurred before or after project approval by the commission. Capital
improvement does not include the cost of ordinary repairs and maintenance required to
keep a racetrack facility in ordinary operating condition and does not include
operational expenses, but may include the direct acquisition of water trucks and
tractors.
H. This section expires on June 30, 1992, except that projects approved prior to
this date may continue until their completion under the terms of this section and the
decrease in percentage paid to the state by the permittee shall continue until sufficient
funds have been obtained for completion of the approved capital improvement.
5-111.04 Repayment of nonapproved expenditures of capital monies; judicial review
A. If it is determined by the commission, through the findings of the commission or
through information provided to the commission by the department or the auditor general,
that a permittee has retained monies for approved capital improvements pursuant to
sections 5-111.02 and 5-111.03 in excess of the amount approved for such capital
improvements, the permittee shall repay the excess amount to this state within one year
after notification of the determination by the commission. The commission shall determine
the repayment method, and the repayment may be made directly by the permittee or through
reductions in future entitlements for capital improvements which have been approved by
the commission. This section shall not prohibit the use of capital expenditure monies
received pursuant to sections 5-111.02 and 5-111.03 for repayment of obligations of the
permittee which directly relate to approved capital improvements.
B. Except as provided in section 41-1092.08, subsection H, final decisions of the
commission are subject to judicial review pursuant to title 12, chapter 7, article 6.
5-111 Wagering percentage to permittee andstate; exemptions
A. The commission shall prescribe rules governing wagering on races under the
system known as pari-mutuel wagering. Wagering shall be conducted by a permittee only by
pari-mutuel wagering and only on the dates for which racing or dark day simulcasting has
been authorized by the commission. Wagering for a licensed racing meeting shall be
conducted by a permittee only within an enclosure in which authorized racing takes place
and, in counties having a population of less than five hundred thousand persons or at
least one million five hundred thousand persons, as shown by the most recent United
States decennial census, at those additional facilities which are owned or leased by a
permittee and which are used by a permittee for handling wagering as part of the
pari-mutuel system and pool of the permittee at the enclosure where the authorized racing
is conducted. In all other counties, wagering may also be conducted at additional
facilities which are owned or leased by a permittee who is licensed to conduct live
racing in those counties or who has the consent of all commercial permittees currently
licensed to conduct live racing in those counties and which are used by a permittee for
handling wagering and as part of the pari-mutuel system and pool of the permittee at the
enclosure where the authorized racing is conducted. If the additional facilities have
not been used for authorized racing before their use for handling wagering, a permittee
shall not use the facilities for handling wagering before receiving approval for such use
by the governing body of the city or town, if located within the corporate limits, or by
the board of supervisors, if located in an unincorporated area of the county. A
permittee may televise the races to the additional facilities at the times the races are
conducted. For the purpose of section 5-110, subsection C only, a race upon which
wagering is permitted under this subsection shall be deemed to also occur at the
additional facility in the county in which the additional facility is located, and as
such shall be limited in the same manner as actual live racing in such county. For the
purpose of subsections B and C of this section, the wagering at the additional facility
shall be deemed to occur in the county in which the additional facility is located.
B. During the period of any permit for dog racing in any county, the state shall
receive five and one-half per cent of all monies handled in the pari-mutuel pool operated
by the permittee, to be paid daily during the racing meeting. In all counties having a
population of one million five hundred thousand persons or more, according to the most
recent United States decennial census, four and three-quarters per cent of the gross
amount of monies handled in a pari-mutuel pool shall be deducted from the pari-mutuel
pool and shall be deposited daily into a trust account for the payment of purse
amounts. In counties having a population of less than one million five hundred thousand
persons according to the most recent United States decennial census, four per cent of the
gross amount of monies handled in a pari-mutuel pool shall be deducted from the
pari-mutuel pool and shall be deposited daily in a trust account for the payment of purse
amounts. In addition, twenty-five per cent of any reduction in pari-mutuel taxes each
year resulting from the application of the hardship tax reduction credit determined
pursuant to subsection I of this section shall be deposited in the trust account for
supplementing purse amounts in an equitable manner over the racing meeting as determined
by the commission. Notwithstanding any other provision of this subsection, the
percentage paid by a permittee to the state does not apply to monies handled in a
pari-mutuel pool for wagering on simulcasts of out-of-state races. During a week in
which a permittee conducts live racing at the permittee's racetrack enclosure, the
permittee shall deduct from monies handled in a pari-mutuel pool for wagering on
simulcasts of out-of-state races and deposit daily in a trust account for the payment of
purse amounts the same percentage of the pari-mutuel pool as is deducted for purses for
live races unless otherwise agreed by written contract. Unless otherwise agreed by
written contract, if the commission reasonably determines that live racing will not be
conducted within one calendar year at a racetrack enclosure, the permittee shall deduct
from monies handled in a pari-mutuel pool for wagering on simulcasts of out-of-state
races and deposit daily in a trust account to supplement purses of any dog track where
live racing is conducted within a one hundred mile radius. The supplementing provided by
this subsection shall be in the most equitable manner possible as determined by the
commission. The permittee shall allocate the funds in the trust account and pay purse
amounts at least biweekly. The permittee may, at the permittee's discretion, pay
additional amounts to augment purses from the amounts received by the permittee under
this subsection.
C. During the period of a permit for horse, harness or dog racing, the permittee
which conducts such meeting may deduct up to and including twenty-five per cent of the
total amount handled in the regular pari-mutuel pools and may, at the permittee's option,
deduct up to and including thirty per cent of the total amount handled in the exacta,
daily double, quinella and other wagering pools involving two horses or dogs, and up to
and including thirty-five per cent of the total amount handled in the trifecta or other
wagering pools involving more than two horses or dogs in one or more races. The amounts
if deducted shall be distributed as prescribed in subsection D of this section and
section 5-111.02 for horse or harness racing permittees. For dog racing permittees,
unless otherwise agreed by written contract, the permittee shall allocate to purses from
amounts wagered on live racing conducted in this state an amount equal to fifty per cent
of any amounts that are deducted pursuant to this subsection in excess of twenty per cent
of the total amount handled in the regular pari-mutuel pools, twenty-one per cent of the
total amount handled in the exacta, daily double, quinella and other wagering pools
involving two dogs or twenty-five per cent of the total amount handled in the trifecta or
other wagering pools involving more than two dogs in one or more races. For dog racing
permittees the percentages prescribed in subsection B of this section shall be
distributed to the state and to the trust account for payment of purse amounts and the
permittee shall receive the balance. If the dog racing permittee has made capital
improvements, the distribution to the state shall be adjusted as provided in section
5-111.03. Monies deposited in the trust account for payment of purses pursuant to this
subsection shall be in addition to amounts deposited pursuant to subsection B of this
section.
D. During the period of a permit for horse or harness racing, the state shall
receive two per cent of the gross amount of the first one million dollars of the daily
pari-mutuel pools and five per cent of the gross amount exceeding one million dollars of
the daily pari-mutuel pools. Notwithstanding any other provision of this subsection, the
percentage paid by a permittee to the state does not apply to monies handled in a
pari-mutuel pool for wagering on simulcasts of out-of-state races. The permittee shall
retain the balance of the total amounts deducted pursuant to subsection C of this
section. Of the amount retained by the permittee, less the amount payable to the
permittee for capital improvements pursuant to section 5-111.02, breakage distributed to
the permittee pursuant to section 5-111.01 and other applicable state, county and city
transaction privilege or other taxes, unless otherwise agreed by written contract, fifty
per cent shall be used for purses. Unless otherwise agreed by written contract, fifty
per cent of the revenues received by the permittee from simulcasting races as provided in
section 5-112, net of costs of advertising, shall be utilized as a supplement to the
general purse structure. All amounts which are deducted from the pari-mutuel pool for
purses pursuant to this section and sections 5-111.01, 5-112 and 5-114 and revenues which
are received from simulcasting and which are to be used as a supplement to the general
purse structure pursuant to this subsection shall be deposited daily into a trust account
for the payment of purse amounts.
E. Any county fair racing association may apply to the commission for one racing
meeting each year and the commission shall set the number of days and the dates of such
meetings. A racing meeting conducted under this subsection shall be operated in such
manner that all profits accrue to the county fair racing association, and the county fair
racing association may deduct from the pari-mutuel pool the same amount as prescribed in
subsection C of this section. All county fair racing meetings, whether conducted by
county fair racing associations under the provisions of this subsection or by an
individual, corporation or association other than a county fair racing association, are
exempt from the payment to the state of the percentage of the pari-mutuel pool prescribed
by subsection D of this section and are also exempt from the provisions of section
5-111.01.
F. Monies from charity racing days are exempt from the state percentage of the
pari-mutuel pool prescribed in this section.
G. Sums held by a permittee for payment of unclaimed pari-mutuel tickets are exempt
from the provisions of the revised ARIZONA unclaimed property act, title 44, chapter 3.
H. All of the amounts received by a permittee from the gross amount of monies
handled in a pari-mutuel pool and all amounts held by a permittee for payment of purses
pursuant to this section and sections 5-111.01, 5-112 and 5-114 are exempt from the
provisions of title 42, chapter 5.
I. On August 1 of each year a permittee is eligible for a hardship tax credit
pursuant to this subsection. For purposes of this subsection, "permittee" shall include
any person who has succeeded to the interest of a permittee and who is authorized to
conduct racing at the facility for which the permit was issued. The department shall
determine the amount of any hardship tax credit as follows:
1. Determine the percentage decrease in pari-mutuel wagering by determining the
percentage decrease in pari-mutuel wagering between the base period amount and the amount
of pari-mutuel wagering in the previous fiscal year at the racetrack and the additional
wagering facilities operated by the permittee. The base period amount is the highest
total annual pari-mutuel wagering at the racetrack and all additional wagering facilities
as reported to the department for fiscal year 1989-1990, 1990-1991, 1991-1992, 1992-1993
or 1993-1994.
2. Determine the permittee's hardship tax credit by multiplying the total
pari-mutuel tax due as a result of wagering at the racetrack and all additional wagering
facilities for the previous fiscal year before applying any hardship tax credit amount by
the percentage decrease in pari-mutuel wagering determined pursuant to paragraph 1 of
this subsection and multiplying the result by three.
3. The permittee's pari-mutuel tax due as otherwise determined under subsections B
and D of this section shall be reduced for the current period and any future periods by
an amount equal to the amount of the hardship tax credit determined pursuant to this
subsection. The hardship tax credit is in addition to any other tax exemptions, rebates
and credits.
5-112.01 Defense to a charge of false arrest
Reasonable cause shall be a defense to a civil or criminal action brought for false
arrest, false imprisonment or wrongful detention against a peace officer, employee or
security personnel of the department or the permittee by a person suspected of wagering
violations as provided pursuant to section 5-111, subsection A and section 5-112.
5-112 Wagering legalized; simulcasting ofraces; unauthorized wagering prohibited; classification
A. Except as provided in subsection L of this section, section 5-101.01,
subsection G and title 13, chapter 33, any person within the enclosure of a racing
meeting held pursuant to the provisions of this article may wager on the results of a
race held at the meeting or televised to the racetrack enclosure by simulcasting
pursuant to this section by contributing money to a pari-mutuel pool operated by the
permittee as provided by this article.
B. The department may, upon request by a permittee, grant permission for
electronically televised simulcasts of horse, harness or dog races to be received by
the permittee. In counties having a population of one million five hundred thousand
persons or more according to the most recent United States decennial census, the
simulcasts shall be received at the racetrack enclosure where a horse, harness or dog
racing meeting is being conducted, provided that the simulcast may only be received
during, immediately before or immediately after a minimum of nine posted races for that
racing day. In counties having a population of five hundred thousand persons or more,
but less than one million five hundred thousand persons according to the most recent
United States decennial census, the simulcasts shall be received at the racetrack
enclosure where a horse, harness or dog racing meeting is being conducted provided that
the simulcast may only be received during, immediately before or immediately after a
minimum of four posted races for that racing day. In all other counties, the
simulcasts shall be received at a racetrack enclosure at which authorized racing has
been conducted whether or not posted races have been offered for the day the simulcast
is received. The simulcasts shall be limited to horse, harness or dog races. The
simulcasts shall be limited to the same type of racing as authorized in the permit for
live racing conducted by the permittee. The department may, upon request by a
permittee, grant permission for the permittee to transmit the live race from the
racetrack enclosure where a horse, harness or dog racing meeting is being conducted to
a facility or facilities in another state. All simulcasts of horse or harness races
shall comply with the interstate horse racing act of 1978 (P.L. 95-515; 92 Stat. 1811;
15 United States Code chapter 57). All forms of pari-mutuel wagering shall be allowed
on horse, harness or dog races televised by simulcasting. All monies wagered by
patrons on these horse, harness or dog races shall be computed in the amount of money
wagered each racing day for purposes of section 5-111.
C. Notwithstanding subsection B of this section, in counties having a population
of one million five hundred thousand persons or more according to the most recent
United States decennial census, simulcasts may be received at the racetrack enclosure
and at any additional wagering facility used by a permittee for handling wagering as
provided in section 5-111, subsection A during a permittee's racing meeting as approved
by the commission, whether or not posted races have been conducted on the day the
simulcast is received, if:
1. For horse and harness racing, the permittee's racing permit requires the
permittee to conduct a minimum of nine posted races on an average of five racing days
each week at the permittee's racetrack enclosure during the period beginning on October
1 and ending on the first full week in May.
2. For dog racing, the permittee is required to conduct a minimum of twelve
posted races on each of five days each week for fifty weeks during a calendar year at
the permittee's racetrack enclosure.
D. Notwithstanding subsection B of this section, in counties having a population
of five hundred thousand persons or more but less than one million five hundred
thousand persons according to the most recent United States decennial census,
simulcasts may be received at the racetrack enclosure and at any additional wagering
facility used by a permittee for handling wagering as provided in section 5-111,
subsection A during a permittee's racing meeting as approved by the commission, whether
or not posted races have been conducted on the day the simulcast is received, subject
to the following conditions:
1. For horse and harness racing, the permittee may conduct wagering on dark day
simulcasts for twenty days, provided the permittee conducts a minimum of seven posted
races on each of the racing days mandated in the permittee's commercial racing
permit. In order to conduct wagering on dark day simulcasts for more than twenty days,
the permittee is required to conduct a minimum of seven posted races on one hundred
forty racing days at the permittee's racetrack enclosure.
2. For dog racing, the permittee is required to conduct a minimum of nine posted
races on each of four days each week for fifty weeks during a calendar year at the
permittee's racetrack enclosure.
E. In an emergency and upon a showing of good cause by a permittee, the
commission may grant an exception to the minimum racing day requirements of subsections
C and D of this section.
F. The minimum racing day requirements of subsections C and D of this section
shall be computed by adding all racing days, including any county fair racing days
operated in accordance with section 5-110, subsection F, allotted to the permittee's
racetrack enclosure in one or more racing permits and all racing days allotted to the
permittee's racetrack enclosure pursuant to section 5-110, subsection H.
G. Notwithstanding subsection B of this section and subject to subsections C and
D of this section, during the period of the permit for horse racing, wagering on dark
day simulcasts of horse races at a permittee's additional wagering facilities shall
only be allowed for a maximum number of days equal to the number of days of live horse
racing scheduled to be conducted at that permittee's racetrack enclosure during the
permittee's racing meeting, and during the period of a permit for dog racing, wagering
on dark day simulcasts of dog races at a permittee's additional wagering facilities
shall only be allowed for a maximum number of days equal to the number of days of live
dog racing scheduled to be conducted at that permittee's racetrack enclosure during the
permittee's racing meeting. The number of days allowed for dark day simulcasting under
this subsection shall be computed by adding all racing days, including any county fair
racing days operated in accordance with section 5-110, subsection F, allotted to the
permittee's racetrack enclosure in one or more racing permits and all racing days
allocated to the permittee's racetrack enclosure pursuant to section 5-110, subsection
H.
H. Simulcast signals or teletracking of simulcast signals does not prohibit live
racing or teletracking of that live racing in any county at any time.
I. Except as provided in subsection L of this section, section 5-101.01,
subsection G and title 13, chapter 33, any person within a racetrack enclosure or an
additional facility authorized for wagering pursuant to section 5-111, subsection A may
wager on the results of a race televised to the facility pursuant to section 5-111,
subsection A by contributing to a pari-mutuel pool operated as provided by this
article.
J. Notwithstanding subsection B of this section, the department, in counties
having a population of one million five hundred thousand persons or more according to
the most recent United States decennial census, may, upon request by a permittee for
one day each year, grant permission for simulcasts to be received without compliance
with the minimum of nine posted races requirement.
K. Except as provided in this article and in title 13, chapter 33, all forms of
wagering or betting on the results of a race, including but not limited to buying,
selling, cashing, exchanging or acquiring a financial interest in pari-mutuel tickets,
except by operation of law, whether the race is conducted in this state or elsewhere,
are illegal.
L. Until June 1, 2003, a permittee shall not knowingly permit a minor to be a
patron of the pari-mutuel system of wagering. Beginning on June 1, 2003, a permittee
shall not knowingly permit a person who is under twenty-one years of age to be a patron
of the pari-mutuel system of wagering.
M. Except as provided in title 13, chapter 33, any person violating any provision
of this article with respect to any wagering or betting, whether the race is conducted
within or without this state, is guilty of a class 6 felony.
N. Simulcasting may only be authorized for the same type of racing authorized by
a permittee's live racing permit.
5-113 Disposition of revenues and monies; funds;committee
A. All revenues derived from permittees, permits and licenses, as provided by this
article, and all monies transferred pursuant to section 44-313, subsection A shall be
deposited, pursuant to sections 35-146 and 35-147, or distributed as follows:
1. Eight hundred thousand dollars or twenty-two per cent, whichever is less, shall
be deposited in the ARIZONA county fairs racing betterment fund established by subsection
B of this section.
2. One million two hundred thousand dollars or thirty-three per cent, whichever is
less, shall be deposited in the county fairs livestock and agriculture promotion fund
established by subsection C of this section.
3. Eight hundred thousand dollars or twenty-two per cent, whichever is less, shall
be deposited in the ARIZONA breeders' award fund established by subsection F of this
section.
4. Forty thousand dollars or one per cent, whichever is less, shall be deposited in
the ARIZONA stallion award fund established by subsection G of this section.
5. Three hundred thousand dollars or nine per cent, whichever is less, shall be
deposited in the county fair racing fund established by subsection I of this section.
6. One per cent of the revenues and monies shall be deposited in the agricultural
consulting and training fund established by subsection J of this section.
7. Forty-five thousand dollars or one per cent, whichever is less, shall be subject
to legislative appropriation to the department for administration of the ARIZONA county
fairs racing betterment fund, the ARIZONA breeders' award fund, the ARIZONA stallion
award fund and the greyhound adoption fund. Monies that are distributed pursuant to this
paragraph and that remain unspent at the end of a fiscal year do not revert to the state
general fund.
8. Four hundred thousand dollars or eleven per cent, whichever is less, shall be
deposited in the ARIZONA exposition and state fair fund established by section 3-1005 for
the purpose of capital outlay.
9. Any revenues and monies that are not distributed pursuant to paragraphs 1
through 8 of this subsection at the end of a fiscal year shall be deposited in the state
general fund.
B. The ARIZONA county fairs racing betterment fund is established under the
jurisdiction of the department. The department shall distribute monies from the fund to
the county fair association or county fair racing association of each county conducting a
county fair racing meeting in such proportion as the department deems necessary for the
promotion and betterment of county fair racing meetings. All expenditures from the fund
shall be made upon claims approved by the department. In order to be eligible for
distributions from the fund, a county fair association must provide the department with
an annual certification in the form required by the department supporting expenditures
made from the fund. Balances remaining in the fund at the end of a fiscal year do not
revert to the state general fund.
C. The county fairs livestock and agriculture promotion fund is established under
the control of the governor and shall be used for the purpose of promoting the livestock
and agricultural resources of the state and for the purpose of conducting an annual
ARIZONA national livestock fair by the ARIZONA exposition and state fair board to further
promote livestock resources. The direct expenses less receipts of the livestock fair
shall be paid from this fund, but such payment shall not exceed thirty per cent of the
receipts of the fund for the preceding fiscal year. Balances remaining in the fund at the
end of a fiscal year do not revert to the state general fund. All expenditures from the
fund shall be made upon claims approved by the governor, as recommended by the livestock
and agriculture committee, for the promotion and betterment of the livestock and
agricultural resources of this state. The livestock and agriculture committee is
established and shall be composed of the following members, at least three of whom are
from counties that have a population of less than five hundred thousand persons,
appointed by the governor:
1. Three members representing county fairs.
2. One member representing ARIZONA livestock fairs.
3. One member representing the university of ARIZONA college of agriculture.
4. One member representing the livestock industry.
5. One member representing the farming industry.
6. One member representing the governor's office.
7. One member representing the ARIZONA state fair conducted by the ARIZONA
exposition and state fair board.
8. One member representing the general public.
D. The governor shall appoint a chairman from the members. Terms of members shall
be four years.
E. Members of the committee are not eligible to receive compensation but are
eligible to receive reimbursement for expenses pursuant to title 38, chapter 4, article
2.
F. The ARIZONA breeders' award fund is established under the jurisdiction of the
department. The department shall distribute monies from the fund to the breeder, or the
breeder's heirs, devisees or successors, of every winning horse or greyhound foaled or
whelped in this state, as defined by section 5-114, in a manner and in an amount
established by rules of the commission to protect the integrity of the racing industry
and promote, improve and advance the quality of race horse and greyhound breeding within
this state. The department may contract with a breeders' association to provide data,
statistics and other information necessary to enable the department to carry out the
purposes of this subsection. Persons who are not eligible to be licensed under section
5-107.01 or persons who have been refused licenses under section 5-108 are not eligible
to participate in the ARIZONA greyhound breeders' award fund. Balances remaining in the
fund at the end of a fiscal year do not revert to the state general fund. For the
purposes of this subsection, "breeder" means the owner or lessee of the dam of the animal
at the time the animal was foaled or whelped.
G. The ARIZONA stallion award fund is established under the jurisdiction of the
department to promote, improve and advance the quality of stallions in this state. The
department shall distribute monies from the fund to the owner or lessee, or the owner's
or lessee's heirs, devisees or successors, of every ARIZONA stallion whose certified
ARIZONA bred offspring, as prescribed in section 5-114, finishes first, second or third
in an eligible race in this state. The department may contract with a breeders'
association to provide data, statistics and other information necessary to enable the
department to carry out the purposes of this subsection. Balances remaining in the fund
at the end of a fiscal year do not revert to the state general fund. The commission shall
adopt rules pursuant to title 41, chapter 6 to carry out the purposes of this subsection.
The rules shall prescribe at a minimum:
1. The manner and procedure for distribution from the fund, including eligibility
requirements for owners and lessees.
2. Subject to availability of monies in the fund, the amount to be awarded.
3. The requirements for a stallion registered with the jockey club, Lexington,
Kentucky or with the American quarter horse association, Amarillo, Texas to be certified
as an ARIZONA stallion.
4. The types and requirements of races for which an award may be made.
H. The greyhound and retired racehorse adoption fund is established. The
department shall administer the fund and maintain separate accounts for greyhound
adoptions and retired racehorse adoptions. All revenues derived from license fees
collected from dog breeders, racing kennels and other operations pursuant to section
5-104, subsection F, paragraphs 7, 8 and 9 shall be deposited, pursuant to sections
35-146 and 35-147, in the greyhound adoption account of the fund. All revenues derived
from retired racehorse adoption surcharges collected pursuant to section 5-104,
subsection G shall be deposited, pursuant to sections 35-146 and 35-147, in the retired
racehorse adoption account of the fund. The department shall distribute monies from the
fund to provide financial assistance to nonprofit enterprises approved by the commission
to promote the adoption of former racing greyhounds as domestic pets and to promote the
adoption of retired racehorses pursuant to section 5-104, subsection G in a manner and in
an amount established by rules of the commission. Balances remaining in the fund at the
end of a fiscal year do not revert to the state general fund.
I. The county fair racing fund is established. The department shall administer the
fund. Subject to legislative appropriation, the department shall use fund monies for the
administration of county fair racing. Any monies remaining unexpended in the fund at the
end of the fiscal year in excess of seventy-five thousand dollars shall revert to the
state general fund.
J. The agricultural consulting and training fund is established. The ARIZONA
department of agriculture shall administer the fund. Subject to legislative
appropriation, the ARIZONA department of agriculture shall use monies in the fund for the
agricultural consulting and training program established by section 3-109.01. Balances
remaining in the fund at the end of a fiscal year do not revert to the state general
fund.
5-114 Races exclusively for ARIZONA bred horsesand dogs; breeders' awards; certification; fee
A. For the purpose of promoting and encouraging the breeding of ARIZONA bred dogs,
each meeting shall offer a number of races equal to an average of not less than one for
each day of racing which shall be exclusively for ARIZONA bred dogs. In the event the
race does not fill, it shall be offered as an open race in which ARIZONA bred dogs have a
preference of entry.
B. For the purpose of promoting and encouraging the breeding of ARIZONA bred
horses, each meeting shall offer not less than one race each day of racing which shall be
exclusively for ARIZONA bred horses. In the event such race does not fill, it shall be
offered as an open race in which ARIZONA bred horses have a preference of entry.
C. To promote and improve the breeding of horses and dogs within the state, a sum
of money equal to ten per cent of the first money of every purse won by a horse or dog
bred in this state shall be paid by the permittee to the owner or lessee, or his heirs,
devisees or successors, of the dam of the animal at the time the animal was foaled or
whelped. Such amount shall be paid within thirty days after the close of the racing
meeting. All claims or disputes as to the dam of a horse or dog bred in this state shall
be determined by the permittee, subject to review by the commission, and the decision of
the commission shall be final and conclusive. A horse or dog bred in this state means a
horse foaled or a dog whelped in this state and certified by the commission. To be
eligible for ARIZONA bred certification, the horse or dog must be physically present
within the state for not less than six months during the period from the date he is
foaled or whelped to the first anniversary date of his having been foaled or whelped. In
addition, a dog must be eligible to race pursuant to section 5-109 in order to be
eligible for ARIZONA bred certification.
D. The commission may contract with a breeders' association to certify that an
animal is ARIZONA bred or is an ARIZONA stallion. The commission may authorize the
association, racing organization or department to charge and collect a reasonable fee
from the breeder or a stallion owner to cover the cost of certification or transfer and
verification that the animal is ARIZONA bred or an ARIZONA stallion.
E. Persons who are not licensed under section 5-107.01 are not eligible to
participate in the ARIZONA greyhound breeders' award fund. 5-115 Violation; classification; civilpenalties
A. At any racing meeting conducted under the provisions of this article, a person
is guilty of a class 4 felony, if he:
1. Knowingly influences or has any understanding or connivance with any official,
owner, jockey, trainer, groom, starter, assistant starter or other person associated with
a stable, kennel or race in which any horse or dog participates to predetermine the
result thereof.
2. Knowingly gives or offers a bribe in any form to any official, owner, trainer,
jockey, driver or groom, starter or assistant starter or any other person licensed by the
department or accepts or solicits a bribe in any form.
3. Knowingly has in his possession or in use, while riding or driving in any horse
race, any mechanical or electric device capable of affecting a horse's performance other
than an ordinary whip.
4. Knowingly commits any other corrupt or fraudulent practice in relation to racing
which affects or may affect the result of a race.
5. For the purpose of selling or offering to sell predictions on horse races,
harness races or dog races, advertises that he has predicted the outcome of any race
which has been run in this state, unless such person has notified in writing the
department or a representative of the department of his predictions at least three hours
prior to the race involved on forms prescribed by the department. No person shall
advertise the fact that he has notified the department or use the name of the department
in any way whatsoever to promote the activities described in this section. For the
purposes of this paragraph, "advertise" means the use of any newspaper, magazine or other
publication, book, notice, circular, pamphlet, letter, handbill, tip sheet, poster, bill,
sign, placard, card, label, tag window display, store sign, radio or television
announcement, or other means or methods now or hereafter employed to bring to the
attention of the public information concerning the outcome of horse or dog
races. Nothing contained in this paragraph shall apply to any daily newspaper of general
circulation which is regularly entered in the United States mail, or any other daily
publication carrying complete past performances of horses or dogs entered in races, or to
any regularly published magazine or periodical devoted to racing news, which magazine or
periodical has been published for at least two years.
B. It is a class 4 felony for:
1. A trainer or owner to enter a horse or dog in a race if the trainer or owner
knows that the horse or dog is drugged or desensitized and that the racing performance of
the animal is affected.
2. A person to perform the drugging or desensitizing of a horse or dog if such a
person knows that the horse or dog will compete in a race while so drugged or
desensitized and knows that the racing performance of the animal is affected.
3. A person to intentionally fail to notify a steward as soon as reasonably
possible that a horse or dog entered in a race is drugged or desensitized or that a horse
or dog was not properly made available for the required tests or inspections and knows
that the racing performance of the animal may be affected.
4. A person to intentionally impair or alter the normal performance of a
pari-mutuel wagering system with the intent to defraud or injure the state or a
permittee. Alteration of the normal performance of a pari-mutuel system includes:
(a) Altering, changing or interfering with any equipment or device used in
connection with pari-mutuel wagering.
(b) Causing any false, inaccurate, delayed or unauthorized data, impulse or signal
to be fed into, transmitted over, registered in or displayed on any equipment or device
used in connection with pari-mutuel wagering.
5. A person to impair or alter the normal operation of simulcast broadcasts by
intentionally doing any of the following with the intent to defraud or injure the state
or a permittee:
(a) Intercepting or decoding a transmission of a simulcast signal, either in whole
or in part, which has been authorized in writing for the use of pari-mutuel wagering and
which the director has not provided written authorization for the person to receive or
decode.
(b) Without written authorization from the director, manufacturing, distributing or
selling a device, a plan or a kit for a device capable of intercepting or decoding a
transmission of a simulcast signal with the intent that the device, plan or kit be used
for interception or decoding.
(c) Without written authorization from the director, possessing a device, a plan or
a kit for a device capable of intercepting or decoding a transmission of a simulcast
signal with the intent that the device, plan or kit be used for the interception or
decoding.
C. The department, in addition to any criminal penalties provided in this chapter
and in addition to suspension or revocation of a credential or a license, may levy a
civil penalty as to a licensee or a holder of a credential as follows:
1. In an amount of not to exceed five thousand dollars for each violation of any
provision of subsection A.
2. In an amount of not to exceed one thousand dollars for each violation of any
provision of this chapter which constitutes grounds for suspension or revocation of a
credential or license, except for violation of those provisions contained in subsection
A. All sums paid to the department pursuant to this subsection shall be deposited,
pursuant to sections 35-146 and 35-147, in the state general fund.
D. Any person who holds or conducts any racing meeting or operates an additional
wagering facility without first complying with the provisions of this article, or any
person who fails to submit to a drug test as directed by stewards or who violates any
other provision of this article for which no other penalty is prescribed, is guilty of a
class 2 misdemeanor.
E. A member of the commission or an employee of the department who at any time,
directly or indirectly, knowingly receives any money, bribe, tip or other thing of value
or service from any person connected with racing given with an intent to influence his
official action, or any person connected with racing who, directly or indirectly,
knowingly gives such money, bribe, tip or other thing of value or service to a member of
the commission or an employee of the department with intent to influence his official
action, is guilty of a class 4 felony.
F. A person who knowingly removes or alters, either directly or indirectly, any
tattoo, other marking, device, coloration or special characteristic that is required by
the department for the purpose of identifying a greyhound used or bred for racing
purposes or a person who knowingly subjects a greyhound used or bred for racing purposes
regulated under this chapter to grossly inhumane conditions or severe mistreatment is
guilty of a class 6 felony. For purposes of this subsection:
1. "Grossly inhumane conditions" means conditions arising from a person's reckless
indifference to the consequences of an act or omission if the person, without any actual
intent to injure, is aware from his knowledge of existing circumstances and conditions
that his conduct will inevitably or probably result in injury to a greyhound used or bred
for racing purposes.
2. "Severe mistreatment" means the infliction of physical pain, suffering or death
on a greyhound used or bred for racing purposes in a manner that is either wanton or with
reckless indifference to pain or suffering.
5-131 Compact; authority to join
The department of racing and the racing commission may join with other states in an
interstate compact on licensure of participants in live racing with pari-mutuel wagering
as follows:
Article I
Rights and Responsibilities of Each Party State
Section 1. Rights and responsibilities of each party state.
A. By enacting this compact, each party state:
1. Agrees to accept the decisions of the compact committee regarding the issuance
of compact committee licenses to participants in live racing pursuant to the committee's
licensure requirements.
2. Agrees not to treat a notification to an applicant by the compact committee that
the compact committee will not be able to process the application further as the denial
of a license, or to penalize such an applicant in any other way based solely on such a
decision by the compact committee.
3. Reserves the right:
(a) To charge a fee for the use of a compact committee license in that state.
(b) To apply its own standards in determining whether, on the facts of a particular
case, a compact committee license should be suspended or revoked.
(c) To apply its own standards in determining licensure eligibility, under the laws
of that party state, for categories of participants in live racing that the compact
committee determines not to license and for individual participants in live racing who do
not meet the licensure requirements of the compact committee.
(d) To establish its own licensure standards for the licensure of nonracing
employees at pari-mutuel racetracks and employees at separate satellite wagering
facilities.
B. Any party state that suspends or revokes a compact committee license, through
its racing commission or its equivalent or otherwise, shall promptly notify the compact
committee of that suspension or revocation.
C. A party state shall not be held liable for the debts or other financial
obligations incurred by the compact committee.
D. The department of racing may adopt rules to carry out the purposes of this
section.
Article II
Construction and Severability
Section 2. Construction and severability.
This compact shall be liberally construed so as to effectuate its purposes. The
provisions of this compact shall be severable, and, if any phrase, clause, sentence or
provision of this compact is declared to be contrary to the Constitution of the United
States or of any party state, or the applicability of this compact to any government,
agency, person or circumstance is held invalid, the validity of the remainder of this
compact and its applicability to any government, agency, person or circumstance shall not
be affected thereby. If all or some portion of this compact is held to be contrary to the
constitution of any party state, the compact shall remain in full force and effect as to
the remaining party states and in full force and effect as to the state affected as to
all severable matters.
Article III
Definitions
For the purposes of this compact:
1. "Compact committee" means the organization of officials from the party states
that is authorized and empowered by the compact to carry out the purposes of this
compact.
2. "Official" means the appointed, elected, designated or otherwise duly elected
representative of a racing commission or the equivalent thereof in a party state who
represents that party as a member of the compact committee.
3. "Participants in live racing" means participants in live racing with pari-mutuel
wagering in the party states.
4. "Party state" means each state that has enacted this compact.
5. "State" means each of the several states of the United States, the District of
Columbia, the commonwealth of Puerto Rico and each territory or possession of the United
States.
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