USA Statutes : arizona
Title : Amusements and Sports
Chapter : GAMBLING ON INDIAN RESERVATIONS
5-601.02 New standard form of tribal-state gaming compact; effects
(Caution: 1998 Prop. 105 applies)
A. Notwithstanding any other law, within 30 days after receipt of a timely written
request by the governing body of an Indian tribe, the state, through the governor, shall
enter into the new standard form of tribal-state gaming compact with the requesting
Indian tribe by executing the new compact and forwarding it to the United States
department of the interior for any required approval.
B. The state, through the governor, may only enter into a new compact with an
Indian tribe with a pre-existing compact if the Indian tribe requests a new compact
pursuant to subsection A during the first 30 days after the effective date of this
section. The state, through the governor, shall serve a timely notice of nonrenewal of a
pre-existing compact on any Indian tribe that does not request a new compact during the
first 30 days after the effective date of this section. Any Indian tribe without a
pre-existing compact on the effective date of this section may request a new compact at
any time.
C. Notwithstanding any other law, an Indian tribe may conduct the following forms
of gambling as regulated gambling, as defined in section 13-3301, if the gambling is
conducted in accordance with the terms of a tribal-state gaming compact: gaming devices,
keno, offtrack pari-mutuel wagering, pari-mutuel wagering on horse racing, pari-mutuel
wagering on dog racing, blackjack, poker (including jackpot poker), and lottery.
D. The department of gaming shall administer and carry out its responsibilities
under the procedures for the transfer and pooling of unused gaming device allocations
described in section 3(d) of the new compact.
E. The state, through the governor, is authorized to negotiate and enter into
amendments to new compacts that are consistent with this chapter and with the policies of
the Indian gaming regulatory act.
F. At the request of any Indian tribe for which paragraph 6 of subsection I does
not specify a possible additional devices allocation, the state, through the governor,
shall negotiate with the Indian tribe for a possible additional devices allocation. This
allocation shall not be less than the smallest or greater than the largest possible
additional devices allocation provided to an Indian tribe with an equal number of devices
in the current device allocation column set forth in the new compact. At the option of
the Indian tribe, the possible additional devices allocation shall be included in either
the Indian tribe's new compact or an amendment to such new compact.
G. The authority and obligations of the state, through the governor, to negotiate
additional compact terms pursuant to subsections E and F are independent of and separate
from the obligations of the state pursuant to subsection A, and shall not constitute
grounds for any delay by the state in carrying out its obligations to execute and forward
new compacts to the United States department of the interior as required in subsection A.
H. The ARIZONA benefits fund is established consisting of monies paid to the state
by Indian tribes pursuant to section 12(c) of new compacts and interest earned on those
monies. An Indian tribe with a new compact satisfies the requirements of subsection F of
section 5-601. Tribal contributions paid to the state pursuant to a new compact shall be
deposited in the ARIZONA benefits fund, not the permanent tribal-state compact fund
pursuant to subsection G of section 5-601.
1. The department of gaming shall administer the ARIZONA benefits fund. The
department of gaming shall make an annual report to the governor, the president of the
senate, the speaker of the house of representatives and each Indian tribe with a new
compact within 90 days after the end of the state's fiscal year. This report shall be
separate from any other report of the department of gaming. The report shall include a
statement of aggregate gross gaming revenue for all Indian tribes, aggregate revenues
deposited in the ARIZONA benefits fund, including interest thereon, expenditures made
from the ARIZONA benefits fund, and aggregate amounts contributed by all Indian tribes to
cities, towns and counties pursuant to paragraph 4 of this subsection. The department of
gaming shall provide a copy of this report to the secretary of state and the director of
the ARIZONA state library, archives and public records.
2. Except for monies expended by the department of gaming as provided in
subdivision (a) of paragraph 3 of this subsection, which shall be subject to
appropriation, the ARIZONA benefits fund is not subject to appropriation, and
expenditures from the fund are not subject to outside approval notwithstanding any
statutory provision to the contrary. Monies paid to the state by Indian tribes pursuant
to a new compact shall be deposited directly with the ARIZONA benefits fund. On notice
from the department of gaming, the state treasurer shall invest and divest monies in the
ARIZONA benefits fund as provided by section 35-313, and monies earned from investment
shall be credited to the fund. Monies in the ARIZONA benefits fund shall be expended only
as provided in paragraph 3 of this subsection, and shall not revert to any other fund,
including the state general fund. Monies in the ARIZONA benefits fund are exempt from the
provisions of section 35-190 relating to the lapsing of appropriations.
3. Monies in the ARIZONA benefits fund, including all investment earnings, shall be
allocated as follows:
(a)(i) Eight million dollars or nine percent, whichever is greater, shall be used
for reimbursement of administrative and regulatory expenses, including expenses for
development of and access to any online electronic game management systems and for law
enforcement activities incurred by the department of gaming pursuant to this chapter.
Any monies that are allocated pursuant to this subsection 3(a) that are not appropriated
to the department of gaming shall be deposited in the instructional improvement fund
established by section 15-979.
(ii) Two percent shall be used by the department of gaming to fund state and local
programs for the prevention and treatment of, and education concerning, problem gambling.
(b) Of the monies in the ARIZONA benefits fund that are not allocated pursuant to
subdivision (a):
(i) Fifty-six percent shall be deposited in the instructional improvement fund
established by section 15-979 for use by school districts for classroom size reduction,
teacher salary increases, dropout prevention programs, and instructional improvement
programs.
(ii) Twenty-eight percent shall be deposited in the trauma and emergency services
fund established by section 36-2903.07.
(iii) Eight percent shall be deposited in the ARIZONA wildlife conservation fund
established by section 17-299.
(iv) Eight percent shall be deposited in the tourism fund account established by
paragraph 4 of subsection A of section 41-2306 for statewide tourism promotion.
4. In addition to monies contributed to the ARIZONA benefits fund, twelve percent
of tribal contributions pursuant to new compacts shall be contributed by Indian tribes to
cities, towns and counties as defined in title 11, ARIZONA Revised Statutes, for
government services that benefit the general public, including public safety, mitigation
of impacts of gaming, and promotion of commerce and economic development.
(a) An Indian tribe may distribute such funds directly to cities, towns and
counties for these purposes. The amount of monies so distributed by each Indian tribe
shall be reported to the department of gaming in the quarterly report required by the new
compact.
(b) Any monies comprising the twelve percent not so distributed by an Indian tribe
shall be deposited in the commerce and economic development commission local communities
fund established by section 41-1505.12 for grants to cities, towns and counties.
5. The deposit of monies required by subdivision (b) of paragraph 3 of this
subsection shall be made on a quarterly basis, or more frequently if practicable.
I. For the purposes of this section:
1. "Gaming devices" means gaming devices as defined in subdivision (b)(i) of
paragraph 6 of this subsection.
2. "Indian gaming regulatory act" means the Indian gaming regulatory act of 1988
(P.L. 100-497; 102 Stat. 2467; 25 United States Code sections 2701 through 2721 and 18
United States Code sections 1166 through 1168).
3. "Indian lands" means lands as defined in 25 United States Code section
2703(4)(a) and (b), subject to the provisions of 25 United States Code section 2719.
4. "Indian tribe" means:
(a) The Cocopah Indian tribe.
(b) The Fort Mojave Indian tribe.
(c) The Quechan tribe.
(d) The Tonto Apache tribe.
(e) The Yavapai-Apache nation.
(f) The Yavapai-Prescott Indian tribe.
(g) The Colorado River Indian tribes.
(h) The San Carlos Apache tribe.
(i) The White Mountain Apache tribe.
(j) The Ak-Chin Indian community.
(k) The Fort Mcdowell Yavapai nation.
(l) The Salt River Pima-Maricopa Indian community.
(m) The Gila River Indian community.
(n) The Pascua Yaqui tribe.
(o) The Tohono O'odham nation.
(p) The Havasupai tribe.
(q) The Hualapai tribe.
(r) The Kaibab-Paiute tribe.
(s) The Hopi tribe.
(t) The Navajo nation.
(u) The San Juan Southern Paiute tribe.
(v) Any Indian tribe, as defined in 25 United States Code section 2703(5), with
Indian lands in this state.
5. "Pre-existing compact" means an Indian tribe's tribal-state gaming compact and
amendments thereto as approved by the United States department of the interior, and all
appendices thereto, as of the effective date of this section.
6. "New standard form of tribal-state gaming compact" or "new compact" means:
(a) For an Indian tribe without a pre-existing compact, a tribal-state gaming
compact that contains the provisions of the most recent tribal-state gaming compact
entered into by the state and an Indian tribe and approved by the United States secretary
of the interior, and its appendices, prior to the effective date of this section,
modified to include the provisions described in subdivision (b)(i) through (xi) of this
paragraph.
(b) For an Indian tribe with a pre-existing compact, a tribal-state gaming compact
that contains the provisions of the Indian tribe's pre-existing compact, modified as
follows, with any cross references in a pre-existing compact to be conformed accordingly:
(i) The following definition shall replace the corresponding definition in section
2 of the pre-existing compact:
""Gaming device" means a mechanical device, an electro-mechanical device or a device
controlled by an electronic microprocessor or another manner, whether that device
constitutes class II gaming or class III gaming, that allows a player or players to play
games of chance, whether or not the outcome also is affected in some part by skill, and
whether the device accepts coins, tokens, bills, coupons, ticket vouchers, pull tabs,
smart cards, electronic in-house accounting system credits or other similar forms of
consideration and, through the application of chance, allows a player to become entitled
to a prize, which may be collected through the dispensing of coins, tokens, bills,
coupons, ticket vouchers, smart cards, electronic in-house accounting system credits or
other similar forms of value. Gaming device does not include any of the following:
(1) Those technological aids for bingo games that function only as electronic
substitutes for bingo cards.
(2) Devices that issue and validate paper lottery products and that are directly
operated only by ARIZONA state lottery licensed retailers and their employees.
(3) Devices that are operated directly by a lottery player and that dispense paper
lottery tickets, if the devices do not identify winning or losing lottery tickets,
display lottery winnings or disburse lottery winnings.
(4) Devices that are operated directly by a lottery player and that validate paper
lottery tickets for a game that does not have a predetermined number of winning tickets,
if:
(a) The devices do not allow interactive gaming;
(b) The devices do not allow a lottery player to play the lottery for immediate
payment or reward;
(c) The devices do not disburse lottery winnings; and
(d) The devices are not video lottery terminals.
(5) Player activated lottery terminals."
(ii) The following definitions shall be added to section 2 of the pre-existing
compact:
"(mm) "Additional gaming devices" means the number of additional gaming devices
allocated to the tribe in column (2) of the tribe's row in the table.
(nn) "Card game table" means a single table at which the tribe conducts the card
game of poker or blackjack.
(oo) "Class II gaming device" means a gaming device which, if operated on Indian
lands by an Indian tribe, would be class II gaming.
(pp) "Class III gaming device" means a gaming device which, if operated on Indian
lands by an Indian tribe, would be class III gaming.
(qq) "Class III net win" means gross gaming revenue, which is the difference
between gaming wins and losses, before deducting costs and expenses.
(rr) "CPI adjustment rate" shall mean the quotient obtained as follows: the CPI
index for the sixtieth (60th) calendar month of the applicable five-year period for which
the wager limitations are being adjusted shall be divided by the CPI index for the
calendar month in which the effective date occurs. The CPI index for the numerator and
the denominator shall have the same base year. If the CPI index is no longer published,
or if the format of the CPI index has changed so that this calculation is no longer
possible, then another substantially comparable index shall be substituted in the formula
by agreement of the tribe and the state so that the economic effect of this calculation
is preserved. If the parties cannot agree on the substitute index, the substitute index
shall be determined by arbitration in accordance with section 15.
(ss) "CPI index" means the "United States city average (all urban consumers) - all
items (1982-1984 = 100)" index of the consumer price index published by the bureau of
labor statistics, United States department of labor.
(tt) "CPR" means the CPR institute for dispute resolution.
(uu) "Current gaming device allocation" means the number of class III gaming
devices allocated to the tribe in column (1) of the tribe's row in the table as adjusted
under section 3(c)(4).
(vv) "Effective date" means the day this compact goes into effect after all of the
following events have occurred:
(1) It is executed on behalf of the state and the tribe;
(2) It is approved by the secretary of the interior;
(3) Notice of the secretary of the interior's approval is published in the federal
register pursuant to the act; and
(4) Each Indian tribe with a gaming facility in Maricopa, Pima or Pinal counties
has entered into a new compact as defined in A.R.S. section 5-601.02(I)(6), each of which
has been approved by the secretary of the interior, and notice of the secretary of the
interior's approval has been published in the federal register pursuant to the act,
unless the governor of the state waives the requirements of this section 2(vv)(4).
(ww) "Forbearance agreement" means an agreement between the state and an Indian
tribe in which the Indian tribe that is transferring some or all of its gaming device
operating rights waives its rights to put such gaming device operating rights into play
during the term of a transfer agreement.
(xx) "Gaming device operating right" means the authorization of an Indian tribe to
operate class III gaming devices pursuant to the terms of a new compact as defined in
A.R.S. section 5-601.02(I)(6).
(yy) "Maximum devices per gaming facility" means the total number of class III
gaming devices that the tribe may operate within a single gaming facility.
(zz) "Multi-station device" means an electronic class III gaming device that
incorporates more than one player station and contains one central processing unit which
operates the game software, including a single random number generator that determines
the outcome of all games at all player stations for that class III gaming device.
(aaa) "Player activated lottery terminal" means an on-line computer system that is
player activated, but that does not provide the player with interactive gaming, and that
uses the terminal for dispensing purposes only, in which:
(1) The terminal algorithm is used for the random generation of numbers;
(2) The tickets dispensed by the terminal do not allow the player the means to play
directly against the terminal;
(3) The player uses the dispensed ticket to participate in an off-site random
drawing; and
(4) The player's ability to play against the terminal for immediate payment or
reward is eliminated.
(bbb) "Player station" means a terminal of a multi-station device through which the
player plays an electronic game of chance simultaneously with other players at other
player stations of that multi-station device, and which:
(1) Has no means to individually determine game outcome;
(2) Cannot be disconnected from the gaming device central processing unit that
determines the game outcomes for all player stations without rendering that terminal
inoperable; and
(3) Does not separately contain a random number generator or other means to
individually determine the game outcome.
(ccc) "Population adjustment rate" means the quotient obtained as follows: the
state population for the calendar year immediately preceding the calendar year in which
the sixtieth (60th) calendar month of the applicable five-year period for which the
applicable figure or amount is being adjusted occurs divided by the state population for
the calendar year immediately preceding the calendar year in which the effective date
occurs. If the state population is no longer published or calculated by the ARIZONA
department of economic security, then another substantially comparable agency of the
state shall be substituted by agreement of the tribe and the state so that the effect of
this calculation is preserved. If the parties cannot agree on the substitute agency of
the state to provide the state population, the substitute agency or person shall be
determined by arbitration in accordance with section 15.
(ddd) "Previous gaming facility allocation" means the number of facilities
allocated to the tribe in column (3) of the tribe's row in the table.
(eee) "Revised gaming facility allocation" means the number of facilities allocated
to the tribe in column (4) of the tribe's row in the table or by section 3(c)(6).
(fff) "Rules" means the CPR rules for non-administered arbitration (2000 rev.).
(ggg) "State population" means the population of the state as determined using the
most recent estimates published by the ARIZONA department of economic security.
(hhh) "Table" means the gaming device allocation table set out at section 3(c)(5).
(iii) "Transfer agreement" means a written agreement authorizing the transfer of
gaming device operating rights between the tribe and another Indian tribe.
(jjj) "Transfer notice" means a written notice that the tribe must provide to the
state gaming agency of its intent to acquire or transfer gaming device operating rights
pursuant to a transfer agreement.
(kkk) "Wager" means:
(1) In the case of a gaming device, the sum of money placed into the gaming device
in cash, or cash equivalent, by the player which will allow activation of the next random
play of the gaming device.
(2) In the case of poker, the sum of money placed into the pot and onto the card
game table by the player in cash, or cash equivalent, which entitles the player to an
initial deal of cards, a subsequent deal of a card or cards, or which is required to be
placed into the pot and onto the card game table by the player entitling the player to
continue in the game.
(3) In the case of blackjack, the sum of money in cash, or cash equivalent, placed
onto the card game table by the player entitling the player to an initial deal of cards
and to all subsequent cards requested by the player."
(iii) Section 3 of the pre-existing compact shall be replaced with the following:
"Section 3. Nature, size, and conduct of class III gaming.
(a) Authorized class III gaming activities. Subject to the terms and conditions of
this compact, the tribe is authorized to operate the following gaming activities: (1)
class III gaming devices, (2) blackjack, (3) jackpot poker, (4) keno, (5) lottery, (6)
off-track pari-mutuel wagering, (7) pari-mutuel wagering on horse racing, and (8)
pari-mutuel wagering on dog racing.
(b) Appendices governing gaming.
(1) Technical standards for gaming devices. The tribe may only operate class III
gaming devices, including multi-station devices, which comply with the technical
standards set forth in appendix A to this compact. The tribal gaming office shall
require each licensed and certified manufacturer and distributor to verify under oath, on
forms provided by the tribal gaming office, that the class III gaming devices
manufactured or distributed by them for use or play at the gaming facilities meet the
requirements of this section 3(b)(1) and appendix A. The tribal gaming office and the
state gaming agency by mutual agreement may require the testing of any class III gaming
device to ensure compliance with the requirements of this section 3(b)(1) and appendix A.
Any such testing shall be at the expense of the licensed manufacturer or distributor.
(2) Operational standards for blackjack and jackpot poker. The tribe shall conduct
blackjack and jackpot poker in accordance with an appendix, which shall consist of the
minimum internal control standards of the commission as set forth in 25 C.F.R. part 542
as published in 64 Fed. Reg. 590 (Jan. 5, 1999) as may be amended from time to time,
without regard to the commission's authority to promulgate the standards, until an
appendix setting forth the operational standards, specifications, regulations and any
limitations governing such gaming activities is agreed to by the tribe and the state.
(3) Additional appendices.
(a) Except as provided in sections 3(b)(1) and (2), the tribe may not conduct any
gaming activities authorized in this compact without a mutually agreed-upon appendix
setting forth the operational standards, specifications, regulations and any limitations
governing such gaming activities. For purposes of this subsection, promotional activity
conducted as a lottery is a gaming activity for which an appendix shall be required. Any
disputes regarding the contents of such appendices shall be resolved in the manner set
forth in section 15.
(b) The gaming facility operator shall conduct its gaming activities under an
internal control system that implements the minimum internal control standards of the
commission as set forth in 25 C.F.R. part 542 as published in 64 Fed. Reg. 590 (Jan. 5,
1999) as may be amended from time to time, without regard to the commission's authority
to promulgate the standards.
(c) The tribal gaming office and the state gaming agency may agree to amend
appendices to this compact in order to continue efficient regulation and address future
circumstances. A change in an appendix or the addition of a new appendix shall not be
considered an amendment to this compact.
(4) Security and surveillance requirements. The tribe shall comply with the
security and surveillance requirements set forth in appendix C to this compact.
(a) If the gaming facility operator operates the surveillance system, the manager
of the surveillance department may report to management of the gaming facility operator
regarding administrative and daily matters, but must report to a person or persons
independent of the management of the gaming facility operator (e.g., the gaming facility
operator's management board or a committee thereof, the tribe's council or a committee
thereof, or the tribe's chairperson, president, or governor) regarding matters of policy,
purpose, responsibility, authority, and integrity of casino management.
(b) If the tribal gaming office operates the surveillance system, the manager of
its surveillance department must report directly to the executive director of the tribal
gaming office.
(5) Online electronic game management system. Each gaming facility must have an
online electronic game management system that meets the requirements of appendix A.
(a) If the tribe is Ak-Chin Indian community, Ft. McDowell Yavapai nation, Gila
River Indian community, Pascua Yaqui tribe, Salt River Pima-Maricopa Indian community, or
Tohono O'odham nation, then the gaming facility operator shall provide the state gaming
agency with real time read-only electronic access to the online electronic game
management system for each gaming facility of the tribe that is located within forty (40)
miles of a municipality with a population of more than four hundred thousand (400,000),
to provide the state gaming agency a more effective and efficient means of regulating
gaming devices and tracking revenues.
1. The state gaming agency's real time read-only electronic access shall be limited
to the following data maintained by the online electronic game management system,
provided that the data is available in real-time and providing real-time access does not
result in the loss of accumulation of data elements: coin in; coin out; drop (bills and
coins); individual bills denomination; vouchers; theoretical hold; variances; jackpots;
machine fills; ticket in; ticket out; slot door opening; drop door opening; cash box
opening; ticket in opening; ticket out opening; and no-communication. If providing this
data in real-time would result in the loss of accumulation of data elements, the gaming
facility operator must provide the state gaming agency with access to the data via
end-of-day reports containing the required data.
2. The state gaming agency shall phase in the system to provide it with real time
read-only access to the online electronic game management system over a three year
period. The state gaming agency shall pay the cost of:
A. Constructing and maintaining a dedicated telecommunications connection between
the gaming facility operator's server room and the state gaming agency's offices;
B. Obtaining, installing, and maintaining any hardware or software necessary to
interface between the gaming facility operator's online electronic game management system
and the dedicated telecommunications connection; and
C. Obtaining, installing, and maintaining any hardware or software required in the
state gaming agency's offices.
3. The state gaming agency's dedicated telecommunications connection from its
offices to each gaming facility must meet accepted industry standards for security
sufficient to minimize the possibility of any third-party intercepting any data
transmitted from the gaming facility operator's online electronic game management system
over the connection. The state gaming agency's system security policy must meet accepted
industry standards to assure that data received from the gaming facility operator's
online electronic game management system will not be accessible to unauthorized persons
or entities.
(b) The state gaming agency (and its officers, employees, and agents) are
prohibited from:
1. Using any information obtained from the gaming facility operator's online
electronic game management system for any purpose other than to carry out its duties
under this compact; and
2. Disclosing any information obtained from the gaming facility operator's online
electronic game management system to any person outside the state gaming agency, except
as provided in section 7(b) and section 12(c).
(c) Number of gaming device operating rights and number of gaming facilities.
(1) Number of gaming devices. The tribe's gaming device operating rights are equal
to the sum of its current gaming device allocation, plus any rights to operate additional
gaming devices acquired by the tribe in accordance with and subject to the provisions of
section 3(d). The tribe may operate one class III gaming device for each of the tribe's
gaming device operating rights.
(2) Class II gaming devices. The tribe may operate up to forty (40) class II gaming
devices in a gaming facility without acquiring gaming device operating rights under
section 3(d), but such class II gaming devices shall be counted against the tribe's
number of additional gaming devices. Each class II gaming device in excess of forty (40)
that the tribe operates within its Indian lands shall be counted against the tribe's
current gaming device allocation.
(3) Number of gaming facilities and maximum devices per gaming facility. The tribe
may operate gaming devices in the number of gaming facilities in column (3) or (4) of the
tribe's row in the table, whichever is lower, but shall not operate more than its maximum
devices per gaming facility in any one gaming facility. The maximum devices per gaming
facility for the tribe is the sum of the tribe's current gaming device allocation
(including automatic periodic increases under section 3(c)(4)), plus the tribe's
additional gaming devices, except if the tribe is Salt River Pima-Maricopa Indian
community, Gila River Indian community, Pascua Yaqui tribe, Tohono O'odham nation, or
Navajo nation, then the maximum devices per gaming facility is the same number as the
maximum devices per gaming facility for Ak-Chin Indian community and Ft. McDowell Yavapai
nation. If the tribe is the Tohono O'odham nation, and if the tribe operates four (4)
gaming facilities, then at least one of the four (4) gaming facilities shall:
(i) Be at least fifty (50) miles from the existing gaming facilities of the tribe
in the Tucson metropolitan area as of the effective date;
(ii) Have no more than six hundred forty-five (645) gaming devices; and
(iii) Have no more than seventy-five (75) card game tables.
(4) Periodic increase. During the term of this compact, the tribe's current gaming
device allocation shall be automatically increased (but not decreased), without the need
to amend this compact on each five-year anniversary of the effective date, to the number
equal to the current gaming device allocation specified in the table multiplied by the
population adjustment rate (with any fractions rounded up to the next whole number).
(5) Gaming device allocation table.
Gaming device allocation table
(1) (2) (3) (4) Current Additional Previous Revised
Listed tribe gaming gaming gaming gaming device devices facility facility allocation allocation allocation
The Cocopah Indian tribe 475 170 2 2
Fort Mojave Indian tribe 475 370 2 2
Quechan tribe 475 370 2 2
Tonto Apache tribe 475 170 2 1
Yavapai-Apache nation 475 370 2 1
Yavapai-Prescott tribe 475 370 2 2
Colorado River Indian tribes 475 370 2 2
San Carlos Apache tribe 900 230 3 2
White Mountain Apache tribe 900 40 3 2
Ak-Chin Indian community 475 523 2 1
Ft. McDowell Yavapai nation 475 523 2 1
Salt River Pima-Maricopa
Indian community 700 830 3 2
Gila River Indian community 1400 1020 4 3
Pascua Yaqui tribe 900 670 3 2
Tohono O'odham nation 1400 1020 4 4
Subtotal 10,475 38 29
Non-gaming tribes
(as of 5/1/02)
Havasupai tribe 475 2
Hualapai tribe 475 2
Kaibab-Paiute tribe 475 2
Hopi tribe 900 3
Navajo nation 2400 4
San Juan Southern Paiute
tribe ___ 475 2___
Subtotal 5,200 15
State total 15,675 53
(6) If the tribe is not listed on the table, the tribe's current device allocation
shall be four hundred seventy-five (475) gaming devices and the tribe's revised gaming
facility allocation shall be two (2) gaming facilities.
(7) Multi-station devices. No more than two and one-half percent (2.5%) of the
gaming devices in a gaming facility (rounded off to the nearest whole number) may be
multi-station devices.
(d) Transfer of gaming device operating rights.
(1) Transfer requirements. During the term of this compact, the tribe may enter
into a transfer agreement with one or more Indian tribes to acquire gaming device
operating rights up to the tribe's number of additional gaming devices or to transfer
some or all the tribe's gaming device operating rights up to the tribe's current gaming
device allocation, except that if the tribe is Navajo nation, then the tribe may transfer
only up to 1400 gaming devices of its current gaming device allocation. The tribe's
acquisition or transfer of gaming device operating rights is subject to the following
conditions:
(a) Gaming compact. Each Indian tribe that is a party to a transfer agreement must
have a valid and effective new compact as defined in A.R.S. section 5-601.02(I)(6) that
contains a provision substantially similar to this section 3(d) permitting transfers of
the Indian tribe's gaming device operating rights.
(b) Forbearance agreement. If the tribe enters into a transfer agreement to
transfer some or all of its gaming device operating rights the tribe shall also execute a
forbearance agreement with the state. The forbearance agreement shall include:
1. A waiver of all rights of the tribe to put into play or operate the number of
gaming device operating rights transferred during the term of the transfer agreement;
2. An agreement by the tribe to reduce its gaming facility allocation during the
term of the transfer agreement as follows:
Number of transferred Reductions in gaming
gaming device operating facility allocation
rights
1 - 475 1
476 - 1020 2
1021 - 1400 3
(i) If the tribe's number under column (4) of the table is lower than the tribe's
number under column (3), then the tribe shall be credited for the reduction, if the tribe
enters into a transfer agreement.
(ii) The numbers in the column under number of transferred gaming device operating
rights shall be increased on each five-year anniversary of the effective date by
multiplying each such number, other than one (1), by the population adjustment rate.
(iii) Reductions in the gaming facility allocation will be based on the cumulative
total number of gaming device operating rights transferred by the tribe under all
transfer agreements that are in effect.
(iv) If the tribe is the Navajo nation, then the tribe's gaming facility allocation
shall be two (2), even if the tribe transfers up to 1400 gaming device operating rights.
(c) Gaming facility not required. The tribe may transfer unused gaming device
operating rights whether or not it has a gaming facility allocation.
(d) Current operation. The tribe must operate gaming devices at least equal to its
current gaming device allocation before, or simultaneously with, the tribe acquiring the
right to operate additional gaming devices by a transfer agreement. The tribe is not
required to utilize any gaming device operating rights it acquires, or to utilize them
prior to acquiring additional gaming device operating rights.
(e) Transfer of acquired gaming device operating rights prohibited. The tribe shall
not at any time simultaneously acquire gaming device operating rights and transfer gaming
device operating rights pursuant to transfer agreements.
(2) Transfer agreements. Transfers of gaming device operating rights may be made
pursuant to a transfer agreement between two Indian tribes. A transfer agreement must
include the following provisions:
(a) Number. The number of gaming device operating rights transferred and acquired.
(b) Term. The duration of the transfer agreement.
(c) Consideration. The consideration to be paid by the Indian tribe acquiring the
gaming device operating rights to the Indian tribe transferring the gaming device
operating rights and the method of payment.
(d) Dispute resolution. The dispute resolution and enforcement procedures,
including a provision for the state to receive notice of any such proceeding.
(e) Notice. A procedure to provide quarterly notice to the state gaming agency of
payments made and received, and to provide timely notice of disputes, revocation,
amendment, and termination.
(3) Transfer notice. At least thirty (30) days prior to the execution of a transfer
agreement, the tribe must send to the state gaming agency a transfer notice of its intent
to acquire or transfer gaming device operating rights. The transfer notice shall include
a copy of the proposed transfer agreement, the proposed forbearance agreement and a copy
of the tribal resolution authorizing the acquisition or transfer.
(4) State gaming agency denial of transfer. The state gaming agency may deny a
transfer as set forth in a transfer notice only if:
(i) The proposed transfer violates the conditions set forth in section 3(d)(1), or
(ii) The proposed transfer agreement does not contain the minimum requirements
listed in section 3(d)(2). The state gaming agency's denial of a proposed transfer must
be in writing, must include the specific reason(s) for the denial (including copies of
all documentation relied upon by the state gaming agency to the extent allowed by state
law), and must be received by the tribe within thirty (30) days of the state gaming
agency's receipt of the transfer notice. If the tribe disputes the state gaming agency's
denial of a proposed transfer, the tribe shall have the right to have such dispute
resolved pursuant to section 15.
(5) Effective date of transfer. If the tribe does not receive a notice of denial of
the transfer from the state gaming agency within the time period specified above, the
proposed transfer agreement shall become effective on the later of the thirty-first
(31st) day following the state gaming agency's receipt of the transfer notice or the date
set forth in the transfer agreement.
(6) Use of brokers. The tribe shall not contract with any person to act as a broker
in connection with a transfer agreement. No person shall be paid a percentage fee or a
commission as a result of a transfer agreement, nor shall any person receive a share of
any financial interest in the transfer agreement or the proceeds generated by the
transfer agreement. Any person acting as a broker in connection with a transfer agreement
is providing gaming services.
(7) Revenue from transfer agreements. The tribe agrees that:
(i) All proceeds received by the tribe as a transferor under a transfer agreement
are net revenues from tribal gaming as defined by the act and that such proceeds shall be
used for the purposes permitted under the act; and
(ii) The tribe shall include the proceeds in an annual audit and shall make
available to the state that portion of the audit addressing proceeds from transfer
agreements.
(8) Agreed upon procedures report. The tribe agrees to provide to the state gaming
agency, either separately or with the other party to the transfer agreement, an agreed
upon procedures report from an independent certified public accountant. The procedures to
be examined and reported upon are whether payments made under the transfer agreement were
made in the proper amount, made at the proper time, and deposited in an account of the
Indian tribe transferring gaming device operating rights.
(9) State payment. Proceeds received by the tribe as a transferor under a transfer
agreement from the transfer of gaming device operating rights are not subject to any
payment to the state under this compact or otherwise.
(10) Compact enforcement; effect on transfer agreements. If the tribe acquires
gaming device operating rights under a transfer agreement, no dispute between the state
and the other party to the transfer agreement shall affect the tribe's rights under the
transfer agreement or the tribe's obligations to make the payments required under the
transfer agreement. If the tribe transfers gaming device operating rights under a
transfer agreement, no dispute between the state and the other party to the transfer
agreement shall affect the tribe's rights under the transfer agreement or the obligations
of the other party to the transfer agreement to make the payments required under the
transfer agreement. These provisions shall not apply to a dispute among the state and
both parties to a transfer agreement regarding the validity of a transfer agreement or to
a dispute between the parties to a transfer agreement regarding a breach of the transfer
agreement.
(11) Access to records regarding transfer agreement. The state gaming agency shall
have access to all records of the tribe directly relating to transfer agreements and
forbearance agreements under section 7(b).
(12) Transfer and acquisition of pooled gaming devices.
(a) The tribe is authorized to join with other Indian tribes to periodically
establish a pool to collect gaming device operating rights from Indian tribes that desire
to transfer gaming device operating rights and transfer them to Indian tribes that desire
to acquire gaming device operating rights. If the tribe is operating all of its current
gaming device allocation and, after making reasonable efforts to do so, the tribe is not
able to acquire additional gaming devices pursuant to an agreement described in section
3(d)(2), the tribe may acquire additional gaming devices up to the number specified in
the table for the tribe from a transfer pool under procedures agreed to by Indian tribes
participating in the transfer pool and the state.
(b) The tribe and the state are authorized to establish a pooling mechanism, under
procedures agreed to by the tribe and the state, by which the rights to operate gaming
devices that are not in operation may be acquired by an Indian tribe through an agreement
with the state. If the tribe is operating all of its current gaming device allocation
and, after making reasonable efforts to do so, the tribe is not able to acquire
additional gaming devices pursuant to an agreement described in section 3(d)(2) or from
any transfer pool established pursuant to section 3(d)(12)(a) within 90 days after the
opening of a transfer pool established pursuant to section 3(d)(12)(a), the tribe may
acquire additional gaming devices from the state up to the number specified in the table
for the tribe at a price that is at least one hundred percent (100%) of the highest price
paid to date for the transfer of at least one hundred (100) gaming device operating
rights for a term of at least five (5) years. The monies paid by an Indian tribe to
acquire additional gaming devices under an agreement pursuant to this section 3(d)(12)(b)
shall benefit Indian tribes that have the right to operate gaming devices that are
eligible to be transferred and are not in operation. The state shall provide Indian
tribes that are eligible to enter into an agreement with the state pursuant to this
section 3(d)(12)(b) the opportunity to participate in the pool pursuant to the procedures
agreed to by the tribe and the state.
(c) Prior to agreeing to any procedures with any Indian tribe pursuant to sections
3(d)(12)(a) or (b), the state shall provide notice to the tribe of the proposed
procedures.
(e) Number of card game tables.
(1) Number of card game tables; number of players per game. Subject to the terms
and conditions of this compact, the tribe is authorized to operate up to seventy-five
(75) card game tables within each gaming facility that is located more than forty (40)
miles from any municipality with a population of more than four hundred thousand
(400,000) persons; and up to one hundred (100) card game tables within each gaming
facility that is located within forty (40) miles of a municipality with a population of
more than four hundred thousand (400,000) persons. Each blackjack table shall be limited
to no more than seven (7) available player positions plus the dealer. Each poker table
shall be limited to no more than ten (10) available player positions plus the dealer.
The tribe agrees that it will not operate card games outside of a gaming facility.
(2) Periodic increases in the number of card game tables. The number of card game
tables that the tribe is authorized to operate in each gaming facility shall be
automatically increased (but not decreased), without the need to amend this compact on
each five-year anniversary of the effective date, to the number that is equal to the
number of card game tables the tribe is authorized to operate in each gaming facility set
forth in section 3(e)(1) multiplied by the applicable population adjustment rate (with
any fraction rounded up to the next whole number).
(f) Number of keno games. Subject to the terms and conditions of this compact, the
tribe is authorized to operate no more than two (2) keno games per gaming facility.
(g) Inter-tribal parity provisions.
(1) Gaming devices. Except as provided in section 3(g)(5), if, during the term of
this compact:
(a) An Indian tribe listed on the table is authorized or permitted to operate in
the state:
1. More class III gaming devices than the total number of that Indian tribe's
current gaming device allocation in column (1) of the table, plus the number of that
Indian tribe's additional gaming devices in column (2) of the table; or
2. More class III gaming devices than that Indian tribe's current gaming device
allocation in column (1) of the table without acquiring gaming device operating rights
pursuant to and in accordance with section 3(d); or
3. More class III gaming devices within a single gaming facility than that Indian
tribe's maximum devices per gaming facility (as adjusted in accordance with section
3(c)(3)); or
(b) Any Indian tribe not listed on the table is authorized or permitted after the
effective date to operate in the state more than four hundred seventy-five (475) class
III gaming devices, or more than five hundred twenty-three (523) additional gaming
devices under terms other than section 3(d); then
(c) The following remedies shall be available to the tribe to elect, as the tribe
may determine in its sole discretion, from time to time:
1. The tribe shall automatically be entitled to a greater number of gaming device
operating rights, without the need to amend this compact and without the need to acquire
any gaming device operating rights under section 3(d). The greater number of gaming
device operating rights is the product of a ratio (which is the total number of class III
gaming devices the other Indian tribe is in fact authorized or permitted to operate
following the occurrence of any of the events specified in subsections (a) or (b) of this
section 3(g)(1) divided by the total number assigned to the other Indian tribe under
column (1) plus column (2) of the table) multiplied by the total number assigned to the
tribe in column (1) plus column (2) of the table. If the tribe is not listed on the
table, then the ratio described in the previous sentence is multiplied by the tribe's
total number of gaming devices authorized in the compact; and
2. The tribe shall automatically be entitled to immediately reduce its obligations
to make contributions to the state under section 12. Instead of the amounts payable under
section 12(b), the tribe shall make quarterly contributions to the state equal to
seventy-five hundredths of one percent (.75%) of its class III net win for the prior
quarter. This remedy will not be available after any Indian tribe with a new compact as
defined in A.R.S. section 5-601.02(I)(6) enters its final renewal period as described in
section 23(b)(3).
(2) Contribution terms. If, during the term of this compact any other Indian tribe
is authorized or permitted to operate gaming devices in the state and the terms of the
other Indian tribe's obligation to make contributions to the state are more favorable to
the other Indian tribe than the obligation of the tribe to make contributions to the
state under the terms of section 12, then the tribe may elect to have section 12
automatically amended to conform to those more favorable terms.
(3) Additional class III gaming. Except as provided in section 3(g)(5), if during
the term of this compact, any Indian tribe is authorized to operate:
(a) A form of class III gaming in the state that is not listed in section 3(a),
then the tribe shall be entitled to operate the additional form of gaming that the other
Indian tribe is authorized to operate, without the need to amend this compact.
(b) Blackjack on more card game tables per gaming facility than authorized under
this compact, then the tribe shall be entitled to operate blackjack on the additional
number of card game tables that the other Indian tribe is authorized to operate, without
the need to amend this compact.
(4) Wager limits. Except as provided in section 3(g)(5), if, during the term of
this compact, any Indian tribe is authorized or permitted to operate in the state any
class III gaming devices or card game tables with higher wager limits than the wager
limits specified in section 3, then the tribe is also authorized to operate its gaming
devices and/or card game tables with the same higher wager limits, without the need to
amend this compact.
(5) Exceptions. The provisions of section 3(g) shall not be triggered:
(a) By the automatic periodic increases in:
(i) The current gaming device allocation provided in section 3(c)(4), or the
resulting increase in the maximum device per gaming facility;
(ii) The number of authorized card game tables provided in section 3(e)(2); or
(iii) The authorized wager limits for gaming devices or card game tables provided
in section 3(m)(4);
(b) If the state enters into a compact with an Indian tribe listed as a non-gaming
tribe on the table that provides a number of additional gaming devices that is no greater
than the largest number of additional gaming devices shown on the table for another
Indian tribe with the same current gaming device allocation as shown on the table for
such non-gaming tribe; and
(c) By the provisions of a pre-existing compact as defined in A.R.S. section
5-601.02(I)(5).
(h) Additional gaming due to changes in state law with respect to persons other
than Indian tribes.
(1) If, on or after May 1, 2002, state law changes or is interpreted in a final
judgment of a court of competent jurisdiction or in a final order of a state
administrative agency to permit either a person or entity other than an Indian tribe to
operate gaming devices; any form of class III gaming (including video lottery terminals)
that is not authorized under this compact, other than gambling that is lawful on May 1,
2002 pursuant to A.R.S. section 13-3302; or poker, other than poker that is lawful on May
1, 2002 pursuant to A.R.S. section 13-3302, then, upon the effective date of such state
law, final judgment, or final order:
(a) The tribe shall be authorized under this compact to operate class III gaming
devices without limitations on the number of gaming devices, the number of gaming
facilities, or the maximum gaming devices per gaming facility, and without the need to
amend this compact;
(b) The tribe shall be authorized under this compact to operate table games,
without limitations on the number of card game tables, on wagers, or on the types of
games, and without the need to amend this compact, subject to the provisions of 3(b)(3);
and
(c) In addition to sections 3(h)(1)(a) and (b), the tribe's obligation under
section 12 to make contributions to the state shall be immediately reduced. Instead of
the amounts payable under section 12(b), the tribe shall make quarterly contributions to
the state equal to seventy-five hundredths of one percent (.75%) of its class III net win
for the prior quarter.
(2) The provisions of this section 3(h) shall not apply to casino nights operated
by non-profit or charitable organizations pursuant to and qualified under A.R.S. section
13-3302(b); to social gambling as defined in A.R.S. section 13-3301(7); to any paper
product lottery games, including ticket dispensing devices of the nature used prior to
May 1, 2002, by the ARIZONA lottery; or to low-wager, non-banked recreational pools or
similar activities operated by and on the premises of retailers licensed under title 4,
ARIZONA Revised Statutes, as may be authorized by state law.
(i) Notice. Prior to the tribe obtaining rights under sections 3(g) or (h), either
the tribe or the state must first give written notice to the other describing the facts
which the tribe or the state contend either do or may satisfy the elements of sections
3(g) or (h). The receiving party shall serve a written response on the other party within
thirty (30) days of receipt of the notice. If the parties do not agree on whether
sections 3(g) or (h) have been triggered, the dispute may be submitted to dispute
resolution under section 15 by either the tribe or the state.
(j) Location of gaming facility.
(1) All gaming facilities shall be located on the Indian lands of the tribe. All
gaming facilities of the tribe shall be located not less than one and one-half (1 1/2)
miles apart unless the configuration of the Indian lands of an Indian tribe makes this
requirement impracticable. The tribe shall notify the state gaming agency of the physical
location of any gaming facility a minimum of thirty (30) days prior to commencing gaming
activities at such location. Gaming activity on lands acquired after the enactment of the
act on October 17, 1988 shall be authorized only in accordance with 25 U.S.C. § 2719.
(2) Notice to surrounding communities. The tribe shall notify surrounding
communities regarding new or substantial modifications to gaming facilities and shall
develop procedures for consultation with surrounding communities regarding new or
substantial modifications to gaming facilities.
(k) Financial services in gaming facilities. The tribe shall enact a tribal
ordinance establishing responsible restrictions on the provision of financial services at
gaming facilities. At a minimum, the ordinance shall prohibit:
(1) Locating an automatic teller machine ("ATM") adjacent to, or in close proximity
to, any gaming device;
(2) Locating in a gaming facility an ATM that accepts electronic benefit transfer
cards issued pursuant to a state or federal program that is intended to provide for needy
families or individuals;
(3) Accepting checks or other non-cash items issued pursuant to a state or federal
program that is intended to provide for needy families or individuals; and
(4) The gaming facility operator from extending credit to any patron of a gaming
facility for gaming activities.
(l) Forms of payment for wagers. All payment for wagers made for gaming activities
conducted by the tribe on its Indian lands, including the purchase of tokens for use in
wagering, shall be made by cash, cash equivalent, credit card or personal check.
Automatic teller machines (ATMs) may be installed at a gaming facility.
(m) Wager limitations.
(1) For gaming devices. The maximum wager authorized for any single play of a
gaming device is twenty five dollars ($25.00).
(2) For blackjack. The maximum wager authorized for any single initial wager on a
hand of blackjack by each individual player shall be (a) five hundred dollars ($500.00)
at up to ten (10) card game tables per gaming facility, and (b) two hundred and fifty
dollars ($250.00) for all other card game tables in a gaming facility. The foregoing
maximum wager limits shall apply to each subsequent wager that an individual player shall
be entitled to make on the same hand as the result of "splits" and/or "doubling down"
during the play of such hand.
(3) For poker. The wager limits for a hand of poker shall be (a) $75.00/$150.00 at
up to ten (10) card game tables per gaming facility, and (b) $20.00/$40.00 for all other
card game tables in a gaming facility.
(4) Periodic increases in wager limitations. During the term of this compact, the
wager limitations set forth in this section 3(m) shall each be automatically increased
(but not decreased) without the need to amend this compact on each five-year anniversary
of the effective date to an amount equal to the wager limitations specified in sections
3(m)(1), (2) and (3) multiplied by the CPI adjustment rate (with all amounts rounded up
to the next whole dollar). The tribe will notify the state gaming agency of such wager
limitation adjustments as soon as reasonably possible after the CPI adjustment rate has
been determined.
(n) Hours of operation. The tribe may establish by ordinance or regulation the
permissible hours and days of operation of gaming activities; provided, however, that
with respect to the sale of liquor the tribe shall comply with all applicable state
liquor laws at all gaming facilities.
(o) Ownership of gaming facilities and gaming activities. The tribe shall have the
sole proprietary interest in the gaming facilities and gaming activities. This provision
shall not be construed to prevent the tribe from granting security interests or other
financial accommodations to secured parties, lenders, or others, or to prevent the tribe
from entering into leases or financing arrangements.
(p) Prohibited activities. Any class III gaming not specifically authorized in this
section 3 is prohibited. Except as provided herein, nothing in this compact is intended
to prohibit otherwise lawful and authorized class II gaming upon the tribe's Indian lands
or within the gaming facilities.
(q) Operation as part of a network. Gaming devices authorized pursuant to this
compact may be operated to offer an aggregate prize or prizes as part of a network,
including a network:
(1) With the gaming devices of other Indian tribes located within the state that
have entered into tribal-state gaming compacts with the state, or
(2) Beyond the state pursuant to a mutually-agreed appendix containing technical
standards for wide area networks.
(r) Prohibition on firearms. The possession of firearms by any person within a
gaming facility shall be strictly prohibited. This prohibition shall not apply to
certified law enforcement officers authorized to be on the premises as well as any
private security service retained to provide security at a gaming facility, or armored
car services.
(s) Financing. Any third-party financing extended or guaranteed for the gaming
operation and gaming facilities shall be disclosed to the state gaming agency, and any
person extending such financing shall be required to be licensed by the tribe and
annually certified by the state gaming agency, unless said person is an agency of the
United States or a lending institution licensed and regulated by the state or the United
States.
(t) Record-keeping. The gaming facility operator or the tribal gaming office,
whichever conducts surveillance, shall maintain the following logs as written or
computerized records which shall be available for inspection by the state gaming agency
in accordance with section 7(b): a surveillance log recording all material surveillance
activities in the monitoring room of the gaming facilities; and a security log recording
all unusual occurrences investigated by the tribal gaming office. The gaming facility
operator or the tribal gaming office, whichever conducts surveillance, shall retain video
recordings made in accordance with appendix C for at least seven (7) days from the date
of original recording.
(u) Barred persons. The tribal gaming office shall establish a list of persons
barred from the gaming facilities because their criminal history or association with
career offenders or career offender organizations poses a threat to the integrity of the
gaming activities of the tribe. The tribal gaming office shall employ its best efforts to
exclude persons on such list from entry into its gaming facilities. To the extent not
previously provided, the tribal gaming office shall send a copy of its list on a monthly
basis to the state gaming agency, along with detailed information regarding why the
person has been barred and, to the extent available, the barred person's photograph,
driver's license information, and/or fingerprints, to the extent these items are in the
possession of the tribal gaming office. The state gaming agency will establish a list
which will contain the names, and to the extent available, photographs of, and other
relevant information regarding, persons whose reputations, conduct, or criminal history
is such that their presence within a gaming facility may pose a threat to the public
health, safety, or welfare. Such persons will be barred from all tribal gaming facilities
within the state. The tribe agrees that the state gaming agency may disseminate this
list, which shall contain detailed information about why each person is barred, to all
other tribal gaming offices.
(v) Problem gambling.
(1) Signage. At all public entrances and exits of each gaming facility, the gaming
facility operator shall post signs stating that help is available if a person has a
problem with gambling and, at a minimum, provide the statewide toll free crisis hotline
telephone number established by the ARIZONA state lottery commission.
(2) Self-exclusion. The state gaming agency and the tribe shall comply with the
following provisions:
(a) The state gaming agency shall establish a list of persons who, by acknowledging
in a manner to be established by the state gaming agency that they are problem gamblers,
voluntarily seek to exclude themselves from gaming facilities. The state gaming agency
shall establish procedures for the placement on and removal from the list of
self-excluded persons. No person other than the person seeking voluntary self-exclusion
shall be allowed to include any person's name on the self-exclusion list of the state
gaming agency.
(b) The tribe shall establish procedures for advising persons who inquire about
self-exclusion about the state gaming agency's procedures.
(c) The state gaming agency shall compile identifying information concerning
self-excluded persons. Such information shall contain, at a minimum, the full name and
any aliases of the person, a photograph of the person, the social security or driver's
license number of the person, and the mailing address of the person.
(d) The state gaming agency shall, on a monthly basis, provide the compiled
information to the tribal gaming office. The tribe shall treat the information received
from the state gaming agency under this section as confidential and such information
shall not be disclosed except to other tribal gaming offices for inclusion on their
lists, or to appropriate law enforcement agencies if needed in the conduct of an official
investigation or unless ordered by a court of competent jurisdiction.
(e) The tribal gaming office shall add the self-excluded persons from the list
provided by the state gaming agency to their own list of self-excluded persons.
(f) The tribal gaming office shall require the gaming facility operator to remove
all self-excluded persons from all mailing lists and to revoke any slot or player's
cards. The tribal gaming office shall require the gaming facility operator to take
reasonable steps to ensure that cage personnel check a person's identification against
the state gaming agency's list of self-excluded persons before allowing the person to
cash a check or complete a credit card cash advance transaction.
(g) The tribal gaming office shall require the gaming facility operator to take
reasonable steps to identify self-excluded persons who may be in a gaming facility and,
once identified, promptly escort the self-excluded person from the gaming facility.
(h) The tribal gaming office shall prohibit the gaming facility operator from
paying any hand-paid jackpot to a person who is on the tribal or state gaming agency
self-exclusion list. Any jackpot won by a person on the self-exclusion list shall be
donated by the gaming facility operator to an ARIZONA-based non-profit charitable
organization.
(i) Neither the tribe, the gaming facility operator, the tribal gaming office, nor
any employee thereof shall be liable to any self-excluded person or to any other party in
any proceeding and neither the tribe, the gaming facility operator, nor the tribal gaming
office shall be deemed to have waived its sovereign immunity with respect to any person
for any harm, monetary or otherwise, which may arise as a result of:
1. The failure of the gaming facility operator or the tribal gaming office to
withhold or restore gaming privileges from or to a self-excluded person; or
2. Otherwise permitting a self-excluded person to engage in gaming activity in a
gaming facility while on the list of self-excluded persons.
(j) Neither the tribe, the gaming facility operator, the tribal gaming office, nor
any employee thereof shall be liable to any self-excluded person or to any other party in
any proceeding, and neither the tribe, the gaming facility operator, nor the tribal
gaming office shall be deemed to have waived its sovereign immunity with respect to any
person for any harm, monetary or otherwise, which may arise as a result of disclosure or
publication in any manner, other than a willfully unlawful disclosure or publication, of
the identity of any self-excluded person or persons.
(k) Notwithstanding any other provision of this compact, the state gaming agency's
list of self-excluded persons shall not be open to public inspection.
(w) Restriction on minors.
(1) Until May 31, 2003, no person under 18 years of age shall be permitted to place
any wager, directly or indirectly, in any gaming activity.
(2) Prior to May 31, 2003, the tribe shall enact, as tribal law, a requirement that
beginning June 1, 2003, no person under 21 years of age shall be permitted to place any
wager, directly or indirectly, in any gaming activity.
(3) If, during the term of the compact, the state amends its law to permit wagering
by persons under 21 years of age in any gaming activity by a person or entity other than
an Indian tribe, the tribe may amend tribal law to reduce the lawful gaming age under
this compact to correspond to the lawful gaming age under state law.
(4) No person under 18 years of age shall be employed as a gaming employee. No
person under 21 years of age shall be employed in the service of alcoholic beverages at
any gaming facility, unless such employment would be otherwise permitted under state law.
(x) Advertising.
(1) Right to advertise. The state and the tribe recognize the tribe's
constitutional right to engage in advertising of lawful gaming activities and nothing in
this compact shall be deemed to abrogate or diminish that right.
(2) Prohibition on advertising directed to minors. The gaming facility operator
shall not advertise or market gaming activities in a manner that specifically appeals to
minors.
(3) Advertising guidelines. Within thirty days after the effective date, the gaming
facility operator shall adopt guidelines for the advertising and marketing of gaming
activities that are no less stringent than those contained in the American gaming
association's general advertising guidelines.
(4) Content of advertising. In recognition of the tribe's constitutional right to
advertise gaming activities, the specific content of advertising and marketing materials
shall not be subject to the provisions of section 15 of this compact.
(y) Internet gaming. The tribe shall not be permitted to conduct gaming on the
internet unless persons other than Indian tribes within the state or the state are
authorized by state law to conduct gaming on the internet.
(z) Lottery products. The tribe will not offer paper lottery products in
competition with the ARIZONA lottery's pick or powerball games.
(aa) Annual statement. The tribe shall submit to the state gaming agency either an
annual statement of compliance with the act regarding the use of net gaming revenues or a
copy of its current gaming ordinance requiring that net gaming revenues be used according
to the act."
(iv) The following provisions shall replace the corresponding provisions in section
4 of the pre-existing compact:
"(b) Gaming employees. Every gaming employee shall be licensed by the tribal gaming
office and every employee of the tribal gaming office shall be licensed by the tribe.
Any gaming employee or tribal gaming office employee that is not an enrolled tribal
member shall also be certified by the state gaming agency prior to commencement of
employment, and annually thereafter, subject to the temporary certification provided in
section 5(n). Enrolled tribal members are not required to be certified by the state as a
condition of employment. Gaming employees that hold the following positions are also not
required to be certified by the state, so long as they do not have unescorted access to
secure areas such as gaming device storage and repair areas, count rooms, vaults, cages,
change booths, change banks/cabinets, security offices and surveillance rooms, revenue
accounting offices, and rooms containing information systems that monitor or control
gaming activities (or, as may be agreed to by the state gaming agency and the tribal
gaming office in a separate agreement delineating the secure areas in the tribe's gaming
facilities):
(1) Food and beverage service personnel such as chefs, cooks, waiters, waitresses,
bus persons, dishwashers, food and beverage cashiers, and hosts;
(2) Gift shop managers, assistant managers, cashiers, and clerks;
(3) Greeters;
(4) Landscapers, gardeners, and groundskeepers;
(5) Maintenance, cleaning, and janitorial personnel;
(6) Stewards and valets;
(7) Wardrobe personnel;
(8) Warehouse personnel; and
(9) Hotel personnel.
(d) Manufacturers and suppliers of gaming devices and gaming services. Each
manufacturer and distributor of gaming devices, and each person providing gaming
services, within or without the gaming facility, shall be licensed by the tribal gaming
office and shall be certified by the state gaming agency prior to the sale or lease of
any gaming devices or gaming services. The tribe shall provide to the state gaming agency
a list of the names and addresses of all vendors providing gaming services on a periodic
basis at the time of the meetings required pursuant to section 6(h) of this compact.
Utilities which are the sole available source of any particular service to a gaming
facility are not required to be certified. A vendor licensed and regulated by another
governmental agency may submit a supplement to the application on file with the other
agency. The state gaming agency may waive the requirement that a vendor be certified if
it determines that certifying the vendor is not necessary to protect the public
interest."
(v) The following provision shall replace the corresponding provisions in section 5
of the pre-existing compact:
"(p) State administrative process; certifications. Any applicant for state
certification agrees by making such application to be subject to state jurisdiction to
the extent necessary to determine the applicant's qualification to hold such
certification, including all necessary administrative procedures, hearings and appeals
pursuant to the administrative procedures act, title 41, chapter 6, ARIZONA Revised
Statutes and the administrative rules of the state gaming agency.
(q) Administrative process; licenses.
(1) Any person applying for licensure by the tribal gaming office acknowledges that
by making such application, the state gaming agency, as set forth herein, may be heard
concerning the applicant's qualifications to hold such license. If the state recommends
revocation, suspension, or denial of a license, and the tribal gaming office revokes,
suspends, or denies the license based on the state gaming agency's recommendation, the
person may appeal that action to the tribe, to the extent any such right exists.
(2) If the tribal gaming office takes any action with respect to a license despite
a state recommendation to the contrary, the tribal gaming office shall afford the state
an opportunity for a hearing before an appropriate tribal forum to contest the tribal
gaming office licensing decision. The decision of the tribal forum shall be final, except
as provided in section 5(q)(4).
(3) The tribal gaming office shall afford the state gaming agency the opportunity
to be heard in an appropriate tribal forum on its recommendation to suspend or revoke the
license of any person in the same manner as if the state gaming agency had recommended
denial of the license in the first instance.
(4) Independent tribunal review of tribal forum.
(a) Tribunal appointment and process. If the tribal forum upholds a decision not to
follow a gaming employee license recommendation, the state gaming agency may appeal to an
independent three member tribunal by providing written notice to the tribal gaming office
within ten (10) days after receiving the tribal forum's decision. Within twenty (20) days
thereafter, the CPR or a similar dispute resolution service acceptable to the parties
(the "dispute resolution service"), shall select the tribunal members, except that upon
agreement by the parties, in lieu of selection by the dispute resolution service, each
party may select a tribunal member, and the two members shall select a third member. If,
within five (5) days after their appointment, the tribunal members appointed by the
parties have not agreed upon a third tribunal member, the dispute resolution service
shall select the third member. All tribunal members, whether appointed by the dispute
resolution service or the parties, shall be (a) impartial, (b) licensed by and in good
standing with a state bar association, and (c) independent from the state, the state
gaming agency, the tribe, and the tribal gaming office. The tribunal shall hold a
hearing and issue its decision within ninety (90) days after the state gaming agency
delivers its written notice of appeal to the tribal gaming office.
(b) Tribunal authority. The tribunal's sole authority shall be to review the
decision of the tribal forum and determine whether the decision is supported by
substantial evidence based on the record as a whole. The tribunal's hearing shall be
conducted in a fair and impartial manner. The hearing shall be held on the administrative
record presented to the tribal forum. The tribunal's decision shall be final and not
subject to further appeal or to section 15 dispute resolution procedures. If the tribunal
determines the employee should not be licensed, the tribal gaming office shall promptly
revoke the disputed license. The cost of the tribunal and the hearing shall be borne
equally between the state and the tribe."
(vi) The following provision shall be added to section 7 of the pre-existing
compact:
"(g) Compact compliance review. The state gaming agency is authorized to conduct an
annual, comprehensive compact compliance review of the gaming operation, gaming
facilities, and the gaming activities of the gaming facility operator to monitor
compliance with this compact, any amendments or appendices to this compact, and other
agreements relating to this compact."
(vii) Section 12 of the pre-existing compact shall be replaced with the following:
Section 12. Payment of regulatory costs; tribal contributions
(a) Payment of regulatory costs. The tribe agrees to pay the state the necessary
costs incurred by the state as a result of the state's performance of its rights or
duties under the terms of this compact. The tribe's contributions under this section 12
shall satisfy the agreement to pay those costs.
(b) Tribal contributions. In consideration for the substantial exclusivity
covenants by the state in section 3(h), the tribe shall contribute for the benefit of the
public a percentage of the tribe's class III net win for each fiscal year of the gaming
facility operator as follows:
(1) One percent (1%) of the first twenty-five million dollars ($25,000,000.00);
(2) Three percent (3%) of the next fifty million dollars ($50,000,000.00);
(3) Six percent (6%) of the next twenty-five million dollars ($25,000,000.00); and
(4) Eight percent (8%) of class III net win in excess of one hundred million
dollars ($100,000,000.00).
(c) ARIZONA benefits fund. The tribe shall make eighty-eight percent (88%) of its
total annual contribution under section 12(b) to the ARIZONA benefits fund established by
A.R.S. 5-601.02(H). The state agrees that the ARIZONA benefits fund shall be used for the
purpose of administering the contributions made by the tribe to the state in accordance
with the provisions of section 12(b). All contributions to the state from the tribe
pursuant to this section 12(c), and all contributions to the state from other Indian
tribes that have entered into tribal-state gaming compacts with the state that contain
similar provisions, shall be deposited in the ARIZONA benefits fund administered by the
state gaming agency. The state agrees to invest all monies in the ARIZONA benefits fund
in accordance with A.R.S. section 35-313; monies earned from such investment may only be
credited to the ARIZONA benefits fund. The state agrees that contributions paid to the
state by the tribe under this section 12(c) shall only be distributed as provided in
A.R.S. section 5-601.02, as adopted by the people of the state at the November 5, 2002
election, and the state shall not impose any tax, fee, charge, or other assessment upon
the tribe's gaming operations.
(d) Distributions by tribe to cities, towns and counties. The tribe shall make
twelve percent (12%) of its total annual contribution under section 12(b) in either or
both of the following forms:
(1) Distributions to cities, towns or counties for government services that benefit
the general public, including public safety, mitigation of impacts of gaming, or
promotion of commerce and economic development;
(2) Deposits to the commerce and economic development commission local communities
fund established by A.R.S. section 41-1505.12.
(e) Contribution schedule.
(1) Tribal contributions pursuant to section 12(b) shall be paid quarterly to the
state gaming agency, other than the amounts distributed or deposited to benefit cities,
towns and counties under section 12(d). The contributions shall be calculated based on
the tribe's class III net win for each quarter of the gaming facility operator's fiscal
year. Contributions shall be made no later than twenty-five (25) days after the last day
of each fiscal quarter.
(2) At the time each quarterly contribution is made, the tribe shall submit to the
state gaming agency a report indicating the class III net win by gaming activity for the
quarter, and the amounts paid under sections 12(c) and (d).
(3) The tribe's first quarterly contribution will be calculated based on the
tribe's class III net win for the first full fiscal quarter after the effective date.
(4) Following the state gaming agency's receipt of the annual audit pursuant to
section 11(c), any overpayment of monies by the tribe pursuant to this section shall be
credited to the tribe's next quarterly contribution. Any underpayment of monies shall be
paid by the tribe within thirty (30) days of the state gaming agency's receipt of the
annual audit.
(f) Reduction of tribal contributions. In the event that tribal contributions are
reduced pursuant to sections 3(g) or (h), the tribe shall make the reduced contributions
under the terms of this section 12, and these monies shall be used in the manner set
forth in A.R.S. section 5-601.02(H)(3)(a) as adopted by the people of the state at the
November 5, 2002 election."
(viii) The following provisions shall replace the corresponding provisions, or be
added to the provisions, as the case may be, in section 13 of the pre-existing compact:
"(b) Emergency service accessibility. The tribe shall require the gaming facility
operator to make provisions for adequate emergency accessibility and service. Mutual aid
and emergency response service agreements will be entered as needed with entities from
the surrounding communities.
(e) Law enforcement. The tribe shall implement a written law enforcement services
plan that provides a comprehensive and effective means to address criminal and
undesirable activity at the gaming facilities. This plan shall provide that sufficient
law enforcement resources are available twenty-four hours a day seven days per week to
protect the public health, safety, and welfare at the gaming facilities. The tribe and
the state shall investigate violations of state gambling statutes and other criminal
activities at the gaming facilities. To accommodate investigations and intelligence
sharing, the tribe will provide that a police officer holding current ARIZONA police
officer standards and training (POST) certification is employed by the gaming facility
operator, tribal gaming office, or tribal police department, and assigned to handle
gaming-related matters when they arise. Intelligence liaisons will be established at the
tribal police department or tribal gaming office and also at the state gaming
agency. There will be federal, tribal, and state cooperation in task force
investigations. The state gaming agency's intelligence unit will gather, coordinate,
centralize, and disseminate accurate and current intelligence information pertaining to
criminal and undesirable activity that may threaten patrons, employees, or assets of the
gaming industry. The state and the tribe will coordinate the use of resources, authority,
and personnel of the state and the tribe for the shared goal of preventing and
prosecuting criminal or undesirable activity by players, employees, or businesses in
connection with tribal gaming facilities. Violations of state criminal gambling statutes
on tribal lands may be prosecuted as federal crimes in federal court."
(ix) Section 15 of the pre-existing compact shall be replaced with the following:
"Section 15. Dispute resolution
(a) Notice/negotiation. If either the tribe or the state believes the other has
failed to comply with the requirements set forth in this compact, or if a dispute arises
as to the proper interpretation of those requirements, then either party may serve a
written notice on the other identifying the specific provision or provisions of the
compact in dispute and specifying in detail the factual bases for any alleged
non-compliance and/or the interpretation of the provision of the compact proposed by the
party providing notice. Within ten (10) days following delivery of the written notice of
dispute, the executive director of the tribal gaming office and the director of the state
gaming agency shall meet in an effort to voluntarily resolve the compliance or
interpretation dispute through negotiation. If those negotiations fail to resolve the
dispute, the executive director of the tribal gaming office, the director of the state
gaming agency, and representatives designated by the governor of ARIZONA and the chairman
of the tribe shall meet in a further effort to voluntarily resolve the dispute through
further negotiation.
(b) Mediation. If the tribe and the state are unable to resolve by negotiation any
dispute regarding compliance with the requirements of the compact, or the proper
interpretation of those requirements, within thirty (30) days after delivery of the
written notice of dispute, the tribe and the state shall, upon the request of either
party, endeavor to settle the dispute in an amicable manner by non-binding mediation
administered by the CPR under its mediation procedures dated April 1, 1998 (unless
otherwise agreed to by the parties), and the procedures set forth below. Although the
parties shall be required to participate in the mediation process if requested, a request
for mediation shall not preclude either party from pursuing any other available remedy.
(1) Selection of mediator. If the parties agree upon a mediator, that person shall
serve as the mediator. If the parties are unable to agree on a mediator within ten (10)
days of a request for mediation, then the CPR (i) shall select an attorney from the CPR
panel of distinguished neutrals to be the mediator or (ii) if requested by the parties,
shall select the mediator from a list of potential mediators approved by the parties.
(2) Conduct of mediation. The mediator shall control the procedural aspects of the
mediation and shall be guided by the mediation procedures promulgated by the CPR.
(3) Costs of mediation. The costs of mediation shall be borne equally by the
parties, with one-half (1/2) of the expenses charged to the tribe and one-half (1/2) of
the expenses charged to the state.
(c) Arbitration. If the tribe and the state fail to resolve such a dispute
regarding compliance with the requirements of the compact or the proper interpretation of
those requirements through negotiation or mediation under sections 15(a) or (b) within
thirty (30) days after delivery of the written notice of dispute, upon a demand by either
party, the dispute shall be settled through binding arbitration at a neutral location
and, unless otherwise agreed to by the parties, the arbitration shall be conducted in
accordance with the rules, as modified by the following:
(1) Demand for arbitration. No earlier than thirty (30) days after the delivery of
the notice required under section 15(a), either party may serve on the other a written
demand for arbitration of the dispute, in accordance with CPR rule 3. The demand shall
contain a statement setting forth the nature of the dispute and the remedy sought. The
other party shall file a notice of defense and any counterclaim within twenty (20) days,
in accordance with CPR rule 3. Failure to provide a notice of defense shall not delay the
arbitration. In the absence of a notice of defense, all claims set forth in the demand
shall be deemed denied.
(2) Arbitrators. Unless the parties agree in writing to the appointment of a
single arbitrator, the arbitration shall be conducted before a panel of three (3)
arbitrators. In the absence of an agreement to a single arbitrator, within twenty (20)
days of the defending party's receipt of the demand, each party shall select an
arbitrator. As soon as possible thereafter, but in no event more than forty (40) days
following delivery of the demand, the party-appointed arbitrators shall discuss and
select a third (3rd) arbitrator from the panel of distinguished neutrals, who shall chair
the tribunal. Alternatively, if the parties have agreed upon a list of arbitrators
acceptable to both parties, the CPR shall select the third (3rd) arbitrator from that
list. Unless the parties agree otherwise, at least one (1) of the arbitrators on the
tribunal shall be an attorney or retired judge knowledgeable about the act, federal
Indian law, and jurisdiction within Indian country. If the parties do not appoint an
arbitrator with those qualifications, the party-appointed arbitrators or the CPR shall do
so. Once the tribunal is impaneled, there shall be no ex parte contact with the
arbitrators, except for contacts with the office of the tribunal chair regarding
scheduling or other purely administrative matters that do not deal with substantive
matters or the merits of the issues.
(3) Selection of arbitrator(s) by the CPR. If a party fails to appoint an
arbitrator, or if the party-appointed arbitrators have failed to appoint a third (3rd)
arbitrator within the time period provided in section 15(c)(2), either party may request
appointment of the arbitrator by the CPR. The request shall be made in writing and served
on the other party. CPR shall fill any vacancies on the tribunal within ten (10) days of
a request in accordance with CPR rule 6.
(4) Neutrality of the arbitrators. All arbitrators shall be independent and
impartial. Upon selection, each arbitrator shall promptly disclose in writing to the
tribunal and the parties any circumstances that might cause doubt regarding the
arbitrator's independence or impartiality. Such circumstances may include, but shall not
be limited to, bias, interest in the result of the arbitration, and past or present
relations with a party or its counsel. Following such disclosure, any arbitrator may be
challenged in accordance with CPR rule 7.
(5) Cost of arbitration. The costs of arbitration shall be borne equally by the
parties, with one-half (1/2) of the expenses charged to the tribe and one-half (1/2) of
the expenses charged to the state.
(6) Preliminary conference/hearing. The tribunal shall hold an initial pre-hearing
conference no later than thirty (30) days following the selection of the members of the
tribunal and shall permit discovery and make other applicable decisions in accordance
with CPR rules 9 through 12. Unless the parties agree otherwise, or unless the tribunal
determines that compelling circumstances exist which demand otherwise, the arbitration
shall be completed within one hundred and eighty (180) days of the initial pre-hearing
conference.
(7) Discovery.
(a) Documents. Consistent with the expedited nature of arbitration, each party
will, upon the written request of the other party, promptly provide the other with copies
of documents relevant to the issues raised by any claim or counterclaim or on which the
producing party may rely in support of or in opposition to any claim or defense. Except
as permitted by the tribunal, all written discovery shall be completed within ninety (90)
days following the initial pre-hearing conference. Any dispute regarding discovery, or
the relevance or scope thereof, shall be determined by the tribunal, whose determination
shall be conclusive.
(b) Depositions. Consistent with the expedited nature of arbitration and unless the
parties agree otherwise, a party, upon providing written notice to the other party, shall
have the right to take the depositions of up to five (5) witnesses, each of which shall
last no longer than one (1) day. Unless the parties agree otherwise, additional
depositions shall be scheduled only with the permission of the tribunal and for good
cause shown. A party's need to take the deposition of a witness who is not expected to
be available for an arbitration hearing shall be deemed to be good cause. Except as
permitted by the tribunal, all depositions shall be concluded within one hundred and
twenty (120) days following the initial pre-hearing conference. All objections that might
be raised to deposition testimony shall be reserved for the arbitration hearing, except
for objections based on privilege, proprietary or confidential information, and
objections to form or foundation that could be cured if raised at the deposition.
(8) Injunctive relief in aid of arbitration. The tribe or the state may seek in a
court of competent jurisdiction (a) provisional or ancillary remedies, including
preliminary injunctive relief, pending the outcome of an arbitration proceeding, or (b)
permanent injunctive relief to enforce an arbitration award.
(9) Arbitration hearing.
(a) Notice/transcript. Unless the parties agree otherwise, the tribunal shall
provide the parties with at least sixty (60) days notice of the date of the arbitration
hearing. Unless the parties agree otherwise, there shall be a stenographic record made of
the hearing, with the cost to be shared by the tribe and the state. The transcript shall
be the official record of the proceeding.
(b) Last, best offer format. The arbitrators shall conduct each arbitration
proceeding using the "last, best offer" format, unless any party to an arbitration
proceeding opts out of the "last, best offer" arbitration format in the manner set forth
in section 15(c)(9)(c).
1. No later than forty (40) days before the arbitration hearing (or forty (40) days
before the date the dispute is to be submitted to the tribunal for decision if oral
hearings have been waived), each party shall submit to the other party or parties to the
arbitration a preliminary last, best offer for those issues that will be decided using
the last, best offer format.
2. No later than twenty (20) days before the arbitration hearing (or twenty (20)
days before the date the dispute is to be submitted to the tribunal for decision if oral
hearings have been waived), each party shall submit to the tribunal and the other party
or parties to the arbitration its pre-hearing last, best offer for those issues that will
be decided using the last, best offer format.
3. No later than ten (10) days after the conclusion of the arbitration hearing (or
ten (10) days before the date the dispute is to be submitted to the tribunal for decision
if oral hearings have been waived), each party shall submit to the tribunal and the other
party or parties to the arbitration its final last, best offer for those issues that will
be decided using the last, best offer format.
4. Except as otherwise provided in this section 15(c)(9)(b)(4), for each issue to
be decided using the last, best offer format, the tribunal shall, for its decision on the
issue, adopt one of the last, best offers submitted under section 15(c)(9)(b)(3) and no
other remedy (excepting only remedies in aid of the tribunal's decision). If the tribunal
expressly determines that a last, best offer submitted by a party with respect to an
issue or issues is not consistent with or does not comply with the act and/or the
compact, as they may be amended and as they are interpreted by courts of competent
jurisdiction, then the tribunal shall reject that last, best offer and shall not consider
it in rendering its decision. If the tribunal expressly determines that all the last,
best offers submitted by the parties with respect to an issue or issues are not
consistent with or do not comply with the act and/or the compact, as they may be amended
and as they are interpreted by courts of competent jurisdiction, then the tribunal shall
reject all the last, best offers and shall decide the related issue or issues as if the
parties had elected to have the issue or those issues decided without using the "last,
best offer" format. In addition, the tribunal shall have no authority to award money
damages against either party, regardless of whether a last, best offer proposes an award
of damages.
(c) Opting out of last, best offer format. Unless the parties agree otherwise, a
party desiring to opt out of the "last, best offer" arbitration format shall serve a
written notice of its election no later than fifty (50) days before the arbitration
hearing (or fifty (50) days before the date the dispute is to be submitted to the
tribunal for decision if oral hearings have been waived). The notice shall:
1. Identify with specificity the issue or issues that the arbitrators will decide
without using the "last, best offer" arbitration format, or
2. State that the arbitrators will not use the "last, best offer" arbitration
format.
(10) Decision of the tribunal. The decision of the tribunal shall be in writing,
setting forth detailed findings of fact and conclusions of law and a statement regarding
the reasons for the disposition of each claim. If the tribunal determines that a last,
best offer is not consistent with or does not comply with the act and/or the compact, the
decision of the tribunal shall set forth detailed findings of fact and conclusions of law
and a statement regarding the reasons for the tribunal's determination. The written
decision of the tribunal shall be made promptly and, unless otherwise agreed to by the
parties, no later than forty (40) days from the date of the closing of the hearing or, if
oral hearings have been waived, no later than forty (40) days from the date the dispute
is submitted to the tribunal for decision. The tribunal may take additional time to
render its decision if the tribunal determines that compelling circumstances require
additional time. The tribunal may issue awards in accordance with CPR rule 13, to the
extent that rule is consistent with section 15(c). The decision of the majority of the
arbitrators shall be final, binding, and non-appealable, except for a challenge to a
decision on the grounds set forth in 9 U.S.C. § 10. The failure to comply with a judgment
upon the award of the arbitrators shall be a breach of this compact.
(11) Governing law/jurisdiction. Title 9 of the United States Code (the United
States arbitration act) and the rules shall govern the interpretation and enforcement of
section 15(c), but nothing in section 15(c) shall be interpreted as a waiver of the
state's tenth amendment or eleventh amendment immunity or as a waiver of the tribe's
sovereign immunity. The tribunal shall resolve the disputes submitted for arbitration in
accordance with, and every decision of the tribunal must comply and be consistent with,
the act and the compact, as they may be amended and as they are interpreted by courts of
competent jurisdiction. The tribunal shall have no authority to award money damages
against either party.
(12) Judicial confirmation. Judgment upon any award rendered by the tribunal may be
entered in any court having competent jurisdiction.
(d) Injunctive relief. The parties acknowledge that, although negotiation followed
by mediation and arbitration are the preferred methods of dispute resolution, compact
section 15 shall not impair any rights to seek in any court of competent jurisdiction
injunctive relief pursuant to 25 U.S.C. § 2710(d)(7)(a)(ii), or a judgment upon an award
rendered by an arbitration tribunal in accordance with sections 15(c)(10) and
15(c)(11). In an action brought by the tribe against the state, one court of competent
jurisdiction is the ARIZONA superior court. In an action brought by the state against the
tribe, one court of competent jurisdiction is the United States district court for the
district of ARIZONA. Nothing in this compact is intended to prevent either party from
seeking relief in some other court of competent jurisdiction, or to constitute an
acknowledgement that the state courts have jurisdiction over the tribe or the tribal
courts have jurisdiction over the state."
(x) Section 17 of the pre-existing compact shall be replaced with the following:
"Section 17. Amendments
(a) Proposed compact amendments. To continue to ensure the fair and honest
operation of Indian gaming, no later than one hundred eighty (180) days after the
effective date, the state or the tribe may propose amendments to enhance the following
regulatory provisions of this compact:
(1) The process for tribal judicial review of disputes regarding the nonpayment of
alleged winnings to patrons;
(2) Compliance with United States public health service requirements regarding food
and beverage handling;
(3) Compliance with building codes and fire safety standards in the construction of
new gaming facilities and significant modifications to existing gaming facilities;
(4) The availability of adequate police, fire and emergency medical services to
serve each gaming facility;
(5) Remedies for violations of this compact, the gaming ordinance, federal law, or
state rules for certification holders;
(6) Liability insurance for gaming facilities and procedures for the disposition of
tort claims that arise from personal injuries or property damage suffered at gaming
facilities by patrons of the gaming facilities;
(7) Standards for background investigations, licensing and certification of gaming
employees by the tribe or the state gaming agency, or both;
(8) Standards for background investigations, licensing, and certification by the
tribe or the state gaming agency, or both, of persons or entities that provide gaming
goods or services on a significant basis;
(9) Reports and audits of revenue from gaming activities to allow tracking and
confirmation of such revenue;
(10) Minimum internal control standards, technical standards, testing procedures,
and inspection procedures for class III gaming devices and the online electronic game
management systems to which they are linked;
(11) Minimum internal control standards, operational standards, specifications, and
regulations for other gaming activities permitted under this compact, including rules for
game play and dealing procedures for blackjack and poker; and
(12) Surveillance requirements.
(b) Negotiations/mediation. Within ninety (90) days of receipt by the tribe or the
state of proposed amendments described in section 17(a), the tribe and the state shall
enter into good faith negotiations regarding the proposed amendments. If good faith
negotiations fail to result in a mutually-agreed upon amendment to this compact regarding
any of the issues listed in section 17(a), the parties shall participate in good faith in
a mediation conducted in accordance with the provisions of section 15(b) in an effort to
resolve their differences. The remaining provisions of section 15 shall not apply to
sections 17(a) or (b). Within thirty (30) days after the conclusion of a mediation, the
parties shall conclude negotiations and document any amendments consistent with section
17(c).
(c) Effect. Any amendment to this compact shall be in writing and signed by both
parties. The terms and conditions of this compact shall remain in effect until amended,
modified, or terminated."
(xi) Section 23 of the pre-existing compact shall be replaced with the following:
"Section 23. Effective date and duration
(a) Replacement of other gaming compacts. On the effective date, this compact shall
replace and supersede any other tribal-state gaming compact between the state and the
tribe. The tribe and the state shall execute an acknowledgement of the effective date.
(b) Duration.
(1) The initial term of this compact shall commence on the effective date. The
initial term of this compact shall be the remainder of the term under section 23(b)(1) of
the tribe's pre-existing compact as defined in A.R.S. section 5-601.02(I)(5), if any,
provided that such pre-existing compact was in effect on May 1, 2002, plus ten (10)
years.
(2) This compact shall thereafter be extended for a renewal term of ten (10) years,
unless the state or the tribe notifies the other in writing, not less than one hundred
eighty (180) days prior to the expiration of the initial term, that it does not intend to
renew the compact because of substantial non-compliance.
(3) This compact shall thereafter be extended for an additional renewal term of
three (3) years in order to provide the parties with an opportunity to negotiate new or
amended compact terms, unless the state or the tribe notifies the other in writing, not
less than one hundred eighty (180) days prior to the expiration of the renewal term, that
it does not intend to renew the compact because of substantial non-compliance.
(4) For purposes of this section 23, substantial non-compliance means the willful
failure or refusal to reasonably comply with the material terms of a final,
non-appealable court order, or a final, non-appealable award of an arbitrator or
arbitrators under section 15. Substantial non-compliance does not include technical
inadvertence or non-material variations or omissions in compliance with any such award or
judgment. If either party contends that the other is in substantial non-compliance, the
party so contending shall provide immediate written notice to the other, including the
specific reason(s) for the contention and copies of all documentation relied upon to the
extent allowed by law.
(5) A dispute over whether the state or the tribe has engaged in substantial
non-compliance shall be resolved under section 15. The compact shall remain in effect
until the dispute has been resolved by a final, non-appealable decision under section 15.
In any section 15 proceeding to determine substantial non-compliance, the burden of proof
shall be on the party alleging substantial non-compliance.
(6) The tribe may operate class III gaming only while this compact, or any
extension thereof, is in effect. Prior to the end of the final renewal term of this
compact, the state and the tribe shall negotiate under 25 U.S.C. section 2710(d)(3)(a),
or other applicable federal law, for a successor compact or other similar agreement."
5-601 Gambling on Indian reservations;tribal-state compacts; tribal-state compact fund
A. Notwithstanding any other law, this state, through the governor, may enter into
negotiations and execute tribal-state compacts with Indian tribes in this state pursuant
to the Indian gaming regulatory act of 1988 (P.L. 100-497; 102 Stat. 2467; 25 United
States Code sections 2701 through 2721 and 18 United States Code sections 1166 through
1168). Notwithstanding the authority granted to the governor by this subsection, this
state specifically reserves all of its rights, as attributes of its inherent sovereignty,
recognized by the tenth and eleventh amendments to the United States Constitution. The
governor shall not execute a tribal-state compact which waives, abrogates or diminishes
these rights.
B. Tribal-state gaming compacts shall prohibit persons under twenty-one years of
age from wagering on gaming activities conducted pursuant to the compact as follows:
1. Beginning on June 1, 2003, any tribal-state gaming compact that is executed,
modified, extended or renewed pursuant to this section shall include a provision that
prohibits persons who are under twenty-one years of age from wagering on gaming
activities.
2. Any tribal-state gaming compact that is executed, modified, extended or renewed
pursuant to this section from and after the effective date of this amendment to this
section but before June 1, 2003 shall include a provision that prohibits persons who are
under twenty-one years of age from wagering on gaming activities, except that the
provision shall not take effect until June 1, 2003.
C. The governor shall not concur in any determination by the United States
secretary of the interior that would permit gaming on lands acquired after October 17,
1988 pursuant to 25 United States Code section 2719.
D. The department of gaming is authorized to carry out the duties and
responsibilities of the state gaming agency in compacts executed by the state and Indian
tribes of this state pursuant to the Indian gaming regulatory act.
E. In carrying out its duties under tribal-state gaming compacts, the department of
gaming is exempt from the rule making requirements of title 41, chapter 6.
F. Indian tribes of this state that have executed compacts with the state shall pay
to the department of gaming their share of the regulatory costs necessary to carry out
the duties required by any executed tribal-state compact authorized by the Indian gaming
regulatory act. The department of gaming shall collect from each of the tribes that have
executed a compact with the state their share of the costs incurred by the department
pursuant to this chapter. The dates and methods of payment shall be as specified in the
tribal-state compacts.
G. A permanent tribal-state compact fund is established consisting of monies
received pursuant to subsection F of this section and other monies received pursuant to
this chapter. The department of gaming shall administer the fund. The director of the
department of gaming shall make an annual report to the governor, the president of the
senate, the speaker of the house of representatives and each tribe which has executed a
compact with the state disclosing in detail the activities of the department of gaming
pursuant to this chapter including a full and complete statement of revenues deposited in
and expenditures from the permanent tribal-state compact fund. Monies paid by the tribes
shall only be used for reimbursement of administrative and regulatory expenses incurred
by the department pursuant to this chapter.
H. Monies deposited in the permanent tribal-state compact fund are subject to
legislative appropriation. Monies in the fund are exempt from the provisions of section
35-190 relating to lapsing of appropriations.
I. Any tribal-state gaming compact that is executed, modified, extended or renewed
pursuant to this section shall include provisions that do all of the following:
1. Establish guidelines on automated teller machine use and on the use of credit
cards or other forms of credit in gaming facilities.
2. Require the Indian tribe to post at all public entrances and exits to the gaming
facilities signs that state that help is available if a person has a problem with
gambling and the statewide toll free crisis hotline telephone number, established by the
ARIZONA state lottery commission.
3. Prohibit gaming facility advertising and marketing that specifically appeal to
minors. The provisions shall include guidelines for determining acceptable advertising
and marketing.
4. Establish guidelines for the effective treatment and prevention of problem and
pathological gambling.
5. Establish guidelines for voluntary ban procedures from all gaming facilities in
the state, including but not limited to prohibiting the use of check cashing services,
automatic teller machines, credit cards or other forms of credit offered at a gaming
facility. A third person may not request a ban on behalf of another person.
5-602.01 Rules; civil penalties
A. The department of gaming may adopt rules to carry out the purposes of this
chapter. The rules shall be consistent with the provisions contained in tribal-state
compacts.
B. The department may impose a civil penalty not to exceed five thousand dollars
per day and not to exceed a total of twenty-five thousand dollars against a certificate
holder in lieu of or in addition to revocation of the certificate. The department may
impose a civil penalty against a certificate holder in an amount not to exceed five
hundred dollars for a violation of any rule adopted pursuant to this section if the
violation does not constitute grounds for revocation of the certificate. In determining
the amount of the civil penalty, the department shall consider the seriousness of the
violation and the financial impact that the penalty will have on the certificate holder.
All civil penalties collected by the department pursuant to this section shall be
transferred to the state treasurer for deposit in the state general fund.
C. At the director's request, the attorney general shall file an action in superior
court to recover civil penalties imposed pursuant to this section.
5-602 Gaming certification and enforcement;powers; duties; deputy director
A. The department of gaming shall certify, as provided in tribal-state compacts,
prospective gaming employees, facility support employees, tribal gaming office employees,
financiers, management contractors, providers of gaming services and manufacturers and
distributors of gaming devices to ensure that unsuitable individuals or companies are not
involved in Indian gaming permitted under the tribal-state compacts. In carrying out the
duties prescribed in this section, the department shall seek to promote the public
welfare and public safety and shall seek to prevent corrupt influences from infiltrating
Indian gaming.
B. Certification pursuant to this chapter is a privilege and not a right.
C. The department of gaming shall execute the duties of this state under the
tribal-state compacts in a manner that is consistent with this state's desire to have
extensive, thorough and fair regulation of Indian gaming permitted under the tribal-state
compacts.
D. The department of gaming shall establish a certification and enforcement unit
charged with the investigative duties relevant to tribal-state compacts, including
applications for certification, investigations and enforcement, and such other duties as
the director of the department of gaming prescribes.
E. To determine the suitability of prospective applicants for any tribal gaming
license or state certification, each applicant shall furnish a full set of fingerprints
and such fingerprints shall be submitted to the department of public safety for a
criminal records check. Each applicant's fingerprints shall also be submitted by the
department of public safety to the federal bureau of investigation for a federal criminal
records check. The department of gaming is authorized to receive criminal records
information from the department of public safety and from the federal bureau of
investigation for the purpose of evaluating the fitness of applicants for any tribal
gaming license, state certification or renewal.
F. Hearings shall be conducted pursuant to title 41, chapter 6, article 10. Except
as provided in section 41-1092.08, subsection H, any party who is aggrieved by a final
order or decision of the director of the department of gaming may seek judicial review
pursuant to title 12, chapter 7, article 6.
G. The director of the department of gaming may issue subpoenas for the attendance
of witnesses and the production of books, records and documents necessary for the
enforcement of this article and the tribal-state compacts. These subpoenas shall be
served and enforced in a manner consistent with title 41, chapter 6, article 10.
H. The director of the department of gaming may establish the position of deputy
director of the department of gaming. The deputy director of the department of gaming
position is exempt from title 41, chapter 4, articles 5 and 6. Persons holding the
position of deputy director of the department of gaming are eligible to receive
compensation pursuant to section 38-611.
I. The director of the department of gaming may enter into a contract or agreement
with any public agency for any joint and cooperative action as provided in title 11,
chapter 7, article 3.
J. The department of gaming may investigate violations of section 13-3306 that
occur on non-Indian lands in this state and may cooperate with appropriate law
enforcement authorities and prosecutorial agencies in the investigation and prosecution
of these violations. 5-603 Department of gaming investigators; peaceofficer status
An investigator who is regularly employed and paid by the department of gaming and
who is certified by the ARIZONA peace officer standards and training board has the
authority of a peace officer. 5-604 Department of gaming; director;qualifications; term; conflict of interest; grounds fordismissal
A. The department of gaming is established.
B. The governor shall appoint a director of the department of gaming pursuant to
section 38-211. The director serves at the pleasure of the governor. To be eligible for
appointment as director, a person shall not have a financial interest in a gambling
operation or in the gambling industry in this state during the term of appointment. The
governor may appoint an acting director if there is a vacancy in the office.
C. The director and all other employees of the department are exempt from title
41, chapter 4, articles 5 and 6. The director is eligible to receive compensation
pursuant to section 38-611.
D. The employment or financial interest of any relative to the first degree of
consanguinity or affinity to the director or any other employee of the department in the
gambling industry in this state is grounds for the dismissal of the director or any other
employee of the department.
