SB 1671

House Engrossed
  Senate Bill
gaming; racing;
  boxing; conflict-of-interest continuation
State of Arizona
Senate
Fifty-seventh Legislature
Second Regular Session
2026
CHAPTER 239
SENATE BILL 1671
AN
ACT
amending sections 5-101.01, 5-223
and 5-604, Arizona Revised Statutes; amending title 5, chapter 6, article
1, Arizona Revised Statutes, by adding section 5-606; amending section 5-1312,
Arizona Revised Statutes; Repealing sections 41-3026.04, 41-3026.13
and 41-3026.22, Arizona Revised Statutes; amending title 41, chapter 27,
article 2, Arizona Revised Statutes, by adding sections 41-3032.11, 41-3032.15
and 41-3032.20; relating to gaming.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 5-101.01, Arizona Revised
Statutes, is amended to read:
START_STATUTE5-101.01. Division of racing; director; qualifications; term; deputy
director; conflict of interest
A. There is established a division of racing within
the department of gaming.
B. The director shall administer the division. To be
eligible for appointment as director, a person must have a minimum of five
years of experience in business and administration and shall not have a
financial interest in a racetrack or in the racing industry in this state
during that person's appointment.
C. The director may establish the position of deputy
director of the division.
D. The position of deputy director, if applicable,
is exempt from title 41, chapter 4, articles 5 and 6. The deputy director, if
applicable, is eligible to receive compensation pursuant to section 38-611.
E. The provisions of Title 38,
chapter 3, article 8, relating to conflict of interest, apply applies to the director and all other employees of the
department.
F. Neither the director, any employee of the
department nor any member of the immediate family of the director or other
employee of the department may:
1. Have any pecuniary interest in a racetrack in
this state or in any stable, compound or farm licensed under this chapter.
2. Wager money at a racetrack enclosure or
additional wagering facility in this state or wager money on the results of any
race held at a racetrack enclosure in this state.
3. Hold more than a five percent interest in any
entity doing business with a racetrack in this state.
4. Have any interest, whether direct or indirect, in
a license issued pursuant to this chapter or in a licensee, facility or entity
that is involved in any way with pari-mutuel wagering. For the
purposes of this paragraph, "interest" includes employment.
G. The director, the deputy director,
if applicable, and all employees of the department shall complete a conflict-of-interest
disclosure form on initial appointment as director and deputy director, if
applicable, and on hiring as a new employee. The director, the
deputy director, if applicable, and all department employees shall submit an
updated conflict-of-interest disclosure form annually if any conflict-of-interest
information has changed.
G. H. Failure to comply with subsection F or G of this section is grounds for dismissal.
H. I. For the purposes of subsection F of this section,
"immediate family" means a spouse or children who regularly reside in
the household of the director or other employee of the department. END_STATUTE
Sec. 2. Section 5-223, Arizona Revised
Statutes, is amended to read:
START_STATUTE5-223. Arizona state boxing and mixed martial arts commission;
appointment; terms; compensation; conflict of interest; emergency ringside
meetings
A. The Arizona state boxing and mixed
martial arts commission consists of three members appointed by the
governor pursuant to section 38-211. The term of office of
commissioners is three years. The term of one member shall expire on
the third Monday in January each year.
B. Two members of the commission constitute a quorum
for conducting business. A concurrence of two members is necessary
to render a decision by the commission. Emergency ringside meetings
held immediately prior before and subsequent to after a scheduled contest
for the purpose of determining whether there has been a violation of the rules
and regulations of the commission or this chapter are exempt from the provisions of title 38, chapter 3, article 3.1.
C. The commissioners shall receive compensation as
determined pursuant to section 38-611 for each day they act in their
official capacity, not to exceed one hundred days each year.
D. A commissioner shall not during the
commissioner's term of office promote, sponsor or have any financial interest
in a combatant, a boxing contest or in the premises leased for a boxing
contest.
E. The executive DIRECTOR, all
commissioners and all department and commission employees shall complete a conflict-of-interest
disclosure form on initial appointment as a commissioner and on hiring as a new
employee. The executive director, all commissioners and all employees shall
submit an updated conflict-of-interest disclosure form annually if any conflict-of-interest
information has changed. END_STATUTE
Sec. 3. Section 5-604, Arizona Revised
Statutes, is amended to read:
START_STATUTE5-604. Department of gaming; director; qualifications; term; conflict of
interest; grounds for dismissal
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 subject to title 41, chapter 4, article 4. 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 employee of the department.
E. The director and all employees of
the department shall complete a conflict-of-interest disclosure form on initial
appointment as director and on hiring as a new employee. The
director and all department employees shall submit an updated
conflict-of-interest disclosure form annually if any conflict-of-interest
information has changed.END_STATUTE
Sec. 4. Title 5, chapter 6, article 1, Arizona
Revised Statutes, is amended by adding section 5-606, to read:
START_STATUTE5-606. Complaints; tracking system; annual report
A. The department shall create and
implement a complaint submission process and complaint tracking system that
allow the department to track and monitor complaints relating to this chapter
and chapters 2, 10 and 11 of this title. the department shall make the
complaint submission process available on the department website.
B. On or before september 30 of each
year, the department shall submit an annual report to the president of the
senate, the speaker of the house of representatives and the governor that
includes aggregate data of complaints that are received by the department
relating to persons or entities that are licensed or regulated pursuant to this
title and that are within the statutory AUTHORITY of the department.END_STATUTE
Sec. 5. Section 5-1312, Arizona Revised
Statutes, is amended to read:
START_STATUTE5-1312. Reporting
A. On or before September 30 of each year, the
department shall prepare and submit an annual report to the governor, the
president of the senate and the speaker of the house of representatives, and
shall provide a copy to the secretary of state that contains the following
information:
1. The number of active licensees by type.
2. The aggregate gross and net revenue of all
licensees.
3. The number of investigations conducted to enforce
this chapter.
4. The financial impact on this state of the event
wagering industry in this state.
B. The report may be included with other information
required to be submitted by the department annually. A report submitted under
subsection A of this section may be submitted electronically.
C. The report required pursuant to
subsection A of this section must include a statement that indicates the number
of independent audit results that are required to be submitted by licensed
event wagering operators and management services providers pursuant to section
5-1319 and that were received by the department and must include any
corrective actions taken by the department regarding overpayment or
underpayment of privilege fees. END_STATUTE
Sec. 6. Repeal
Sections 41-3026.04, 41-3026.13 and
41-3026.22, Arizona Revised Statutes, are repealed.
Sec. 7. Title 41, chapter 27, article 2,
Arizona Revised Statutes, is amended by adding sections 41-3032.11, 41-3032.15
and 41-3032.20 to read:
START_STATUTE41-3032.11. Arizona racing commission; termination July 1, 2032
A. The Arizona racing commission
terminates on July 1, 2032.
B. Title 5, chapter 1 and this
section are repealed on january 1, 2033. END_STATUTE
START_STATUTE41-3032.15. Arizona state boxing and mixed martial arts commission;
termination July 1, 2032
A. The Arizona state boxing and mixed
martial arts commission terminates on July 1, 2032.
B. Title 5, chapter 2 and this
section are repealed on January 1, 2033. END_STATUTE
START_STATUTE41-3032.20. Department of
gaming; termination July 1, 2032
A. The department of gaming
terminates on July 1, 2032.
B. Sections 5-601, 5-602,
5-602.01, 5-603 and 5-604, title 5, Chapters 10 and 11 and
this section are repealed on January 1, 2033. END_STATUTE
Sec. 8. Purpose
Pursuant
to section 41-2955, subsection B, Arizona Revised Statutes, the
legislature continues the department of gaming to:
1. Carry out the
responsibilities of the state gaming agency in compacts executed by the state
Indian tribes and this state pursuant to the Indian gaming regulatory act of
1988 (25 United States Code sections 2701 through 2721 and 18 United States
Code sections 1166 through 1168).
2. Ensure the integrity of
fantasy sports contests.
3. Enforce and supervise
compliance with the laws and rules relating to regulating and controlling event
wagering in this state.
4. Regulate racing and
boxing and mixed martial arts in this state in conjunction with their
respective commissions.
Sec. 9. Purpose
Pursuant to section 41-2955,
subsection B, Arizona Revised Statutes, the legislature continues the Arizona
racing commission to regulate the racing industry in this state for the
protection of the public peace, safety and welfare.
Sec. 10. Purpose
Pursuant
to section 41-2955, subsection B, Arizona Revised Statutes, the
legislature continues the Arizona state boxing and mixed martial arts
commission to provide the best protection for all interested parties in the
sports of boxing, kickboxing and mixed martial arts.
Sec. 11. Retroactivity
Sections 6 and 7 of this act are effective retroactively to from and
after July 1, 2026.
APPROVED BY THE GOVERNOR JUNE 22, 2026.
FILED IN THE OFFICE OF THE SECRETARY OF STATE JUNE 22, 2026.