SB1329 - 472R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 5-110, Arizona Revised Statutes, is amended to read:

START_STATUTE5-110. Racing days, times and allocations; emergency transfer; county fairs; charity days

A. Permits for horse, harness or dog racing meetings shall be approved and issued for substantially the same dates allotted to permittees for the same type of racing during the preceding year or for other dates that permittees request, provided that, in the event there is a conflict in dates requested between two or more permittees in the same county for the same kind of racing, the permittee whose application is for substantially the same dates as were allotted to the permittee in the preceding year shall be entitled to have preference over other permittees. In the event two or more permittees have agreed that the dates to be allotted to each of them each year shall be alternated from one year to the next, the commission shall recognize their agreement and such permittees may be accorded preference over any other permittee as to those dates to be allotted to such permittees on an alternating basis. Except as otherwise provided, the commission shall allot dates to the respective permittees after giving due consideration to all of the factors involved and the interests of permittees, the public and this state.

B. The commission may require by the terms of any permit that the permittee offer such number of races during any racing meeting as the commission shall determine, provided that the permittee shall be permitted to offer not less than the same number of races each day as offered in the prior year. The commission shall require each horse racing permittee to conduct for a period of thirty days a number of races equal to an average of not less than two races for each day of racing exclusively for quarter horses. If, in the opinion of the commission, the permittee is offering acceptable quarter horse races but an honest effort is not being put forth to fill these races by the horsemen, the commission may rescind the two race per day quarter horse requirement.

C. Live racing and wagering on simulcast races shall be permissible conducted as follows:

1. In either daytime or nighttime, but there shall be no live daytime dog racing or harness racing on the same day that there is live daytime horse or harness racing in any county in which commercial horse or harness racing has been conducted prior to February 1, 1971, and no live nighttime horse or harness racing on the same day that there is live nighttime dog racing in the same county. There shall be no wagering on simulcast dog races or simulcast harness races offered by a dog racing permittee before 4:15 4:00 p.m., mountain standard time, on the same day that there is live daytime horse racing or harness racing in any county in which commercial horse or harness racing has been conducted before February 1, 1971, and no wagering on simulcast horse races or simulcast harness racing races offered by a horse racing permittee after 7:30 p.m., mountain standard time, on the same day that there is live nighttime dog racing in the same county. The hours during which any other dog, harness or horse racing is to be conducted shall be determined by the commission. The application for a permit shall state the exact days on which racing will be held and the time of day during which racing will be conducted.

2. In addition to the wagering on simulcast racing otherwise allowed by this section:

(a) A commercial live horse racing permittee at a race track enclosure where live horse racing has been conducted for a period of at least ten years after 1992 or at a new race track enclosure in the same county that replaced a previously existing race track enclosure, during the period of time that the permittee is authorized to conduct live or simulcast horse racing, may offer and conduct wagering after 7:30 p.m. on simulcast horse racing received at the race track enclosure where the live racing is conducted and at any additional wagering facility owned or leased by the permittee in any county in this state, except that if there is any commercial live dog racing permittee in a county at a race track enclosure or at a new race track enclosure that replaced the previously existing race track enclosure in a county where live dog racing has been conducted for a period of at least ten years after 1992, the commercial live horse racing permittee shall obtain the consent of the commercial live dog racing permittee for the wagering on the simulcast horse racing in that county.

(b) A commercial live dog racing permittee at a race track enclosure where live dog racing has been conducted for a period of at least ten years beginning after 1992 or at a new race track enclosure in the same county that replaced a previously existing race track enclosure, during the period of time that the permittee is authorized to conduct live or simulcast dog racing, may offer and conduct wagering before 4:00 p.m. on simulcast dog racing received at the race track enclosure where the live racing is conducted and in any county in this state, except that if there is any commercial live horse racing permittee in a county at a race track enclosure or at a new race track enclosure in the same county that replaced the previously existing race track enclosure in a county where live horse racing has been conducted for a period of at least ten years beginning after 1992, the commercial live dog racing permittee shall obtain the consent of the commercial live horse racing permittee for the wagering on the simulcast dog racing in that county.

3. In addition to the wagering on simulcast harness racing otherwise allowed by this section:

(a) A commercial live horse racing permittee at a race track enclosure where live horse racing has been conducted for a period of at least ten years beginning after 1992 or at a new race track enclosure in the same county that replaced a previously existing race track enclosure may offer wagering on simulcast harness racing after 7:30 p.m. during the periods that the permittee is authorized to conduct live or simulcast racing at the permittee's race track enclosure and at any additional wagering facility operated by the permittee in any county in this state, except that if there is any commercial live dog racing permittee in a county at a race track enclosure where live dog racing has been conducted for a period of at least ten years beginning after 1992 or at a new race track enclosure in the same county that replaced the previously existing race track enclosure, the commercial live horse racing permittee shall obtain the consent of the commercial live dog racing permittee for the wagering on the simulcast harness racing in that county.

(b) A commercial live dog racing permittee at a race track enclosure where live dog racing has been conducted for a period of at least ten years beginning after 1992 or at a new race track enclosure in the same county that replaced a previously existing race track enclosure may offer wagering on simulcast harness racing before 4:00 p.m. during the periods that the permittee is authorized to conduct live or simulcast racing at the permittee's race track enclosure and at any additional wagering facility operated by the permittee in any county in this state, except that if there is any commercial live horse racing permittee in a county at a race track enclosure where live horse racing has been conducted for a period of at least ten years after 1992 or at a new race track enclosure in the same county that replaced the previously existing race track enclosure, the commercial live dog racing permittee shall obtain the consent of the commercial live horse racing permittee for the wagering on the simulcast harness racing in that county.

D. During the period of a permit for conducting simulcast harness racing by a commercial live horse or dog racing permittee, the state shall receive a regulatory fee from the daily pari-mutuel pool of the permittee in an amount as determined by the department by rule subject to the approval of the commission. The balance of the amount in the pari-mutuel pool for dog racing permittees shall be distributed as provided in section 5-111, subsection B. The balance of the amount in the Pari-mutuel pool for horse racing permittees shall be distributed as provided in section 5-111, subsection D. A deduction shall not be allowed from the amount received by this state for capital improvements deductions under sections 5-111.02 and 5‑111.03 or for hardship tax credits determined under section 5-111.

D. E. If the commission determines that an emergency has obligated or may obligate a permittee to discontinue racing at a location, the commission may authorize the permittee to transfer racing for the number of days lost to any other location.

E. F. A racing meeting, when operated by a county fair racing association or under lease during the county fair to any individual, corporation or association, shall not come under the limitation placed on days of racing in this section.

F. G The department shall be the judge of whether a county fair racing meeting is being operated in accordance with the provisions of this section. A county fair racing meeting conducted by an individual, corporation or association, other than the properly authorized county fair racing association, shall come under the general provisions of this article the same as a commercial meeting. Notwithstanding this subsection, a county fair racing meeting, whether conducted by a county fair racing association or by an individual, corporation or association other than a county fair racing association, is exempt from the requirement prescribed in section 5‑111 to pay to the state a percentage of the pari‑mutuel pool collected at the meeting.

G. H. The commission may allow a permittee, in addition to the days specified in this permit, to operate up to three racing days during any one meeting as charity days. From the amount deducted from the total handled in the pari‑mutuel pool on charity days, the permittee shall deduct an amount equal to the purses and the cost of conducting racing on these days, and shall donate the balance to nonprofit organizations and corporations which that benefit the general public, which that are engaged in charitable, benevolent and other like work and which that are selected by the permittee and approved by the department. In no event shall the amount given to charity from charity racing days be less than the amount which otherwise would have gone to this state as the state's share on a noncharity racing day.

H. I. Notwithstanding any other provision of this chapter, any dog racing permittee to which a permit to conduct dog racing in this state has been issued may in any racing year modify the racing date allocations made to the permittee for conducting dog racing at a track by reallocating up to two‑thirds of the racing dates allocated to that permittee for dog racing at a track to another track in this state at which the permittee or a corporation of common ownership to the permittee conducts dog racing. For the purpose of this section a corporation of common ownership to the permittee is a corporation which that is owned or controlled, directly or indirectly, by the same corporation that owns or controls the permittee and which that holds a permit to conduct dog racing in this state.

I. J. Notwithstanding any other provision of this article, any dog racing permittee that has offered live dog racing in eight out of ten calendar years from 1980 to 1990 in counties that have a population of less than five hundred thousand persons according to the most recent United States decennial census shall be considered as operating a racetrack enclosure for all purposes under this article and shall not be required to conduct live racing as a condition of that permittee's racing permit. Any permittee qualified under this subsection may conduct wagering on telecasts of races conducted at racetrack enclosures within this state or at racetrack enclosures outside this state without offering live racing at that permittee's racetrack enclosure. END_STATUTE

Sec. 2. Section 5-111, Arizona Revised Statutes, is amended to read:

START_STATUTE5-111. Wagering percentage to permittee and state; exemptions

A. The commission shall prescribe rules governing wagering on races under the system known as pari‑mutuel wagering. Wagering shall be conducted by a permittee only by pari‑mutuel wagering and only on the dates for which racing or dark day simulcasting has been authorized by the commission. Wagering for a licensed during a racing meeting shall be conducted by a commercial or county fair live racing permittee only within an enclosure in which authorized live racing takes place and, in counties having a population of less than five hundred thousand persons or at least one million five hundred thousand persons, as shown by the most recent United States decennial census, at those additional facilities which that are owned or leased by a permittee, and which that are approved by the commission and that are used by a permittee for handling wagering as part of the pari‑mutuel system and pool of the permittee at the enclosure where the authorized racing is conducted of the commercial or county fair live racing permittee. In all other counties, wagering may also be conducted at additional facilities which are owned or leased by a permittee who is licensed to conduct live racing in those counties or who has the consent of all commercial permittees currently licensed to conduct live racing in those counties and which are used by a permittee for handling wagering and as part of the pari‑mutuel system and pool of the permittee at the enclosure where the authorized racing is conducted. If the additional facilities have not been used for authorized racing before their use for handling wagering, a permittee shall not use the facilities for handling wagering before receiving approval for such use by the governing body of the city or town, if located within the corporate limits, or by the board of supervisors, if located in an unincorporated area of the county. A permittee may televise the any live races or any simulcast races received at the permittee's racing enclosure to the additional facilities at the times the races are conducted or received at the permittee's racing enclosure. For the purpose of section 5‑110, subsection C only, a race upon which wagering is permitted under this subsection shall be deemed to also occur at the additional facility in the county in which the additional facility is located, and as such shall be limited in the same manner as actual live racing in such county. For the purpose of subsections B and C of this section, the wagering at the additional facility shall be deemed to occur in the county in which the additional facility is located.

B. During the period of any permit for dog racing in any county, the state shall receive five and one‑half per cent of all monies handled in the pari‑mutuel pool operated by the permittee, to be paid daily during the racing meeting. In all counties having a population of one million five hundred thousand persons or more, according to the most recent United States decennial census, four and three‑quarters per cent of the gross amount of monies handled in a pari‑mutuel pool shall be deducted from the pari‑mutuel pool and shall be deposited daily into a trust account for the payment of purse amounts. In counties having a population of less than one million five hundred thousand persons according to the most recent United States decennial census, four per cent of the gross amount of monies handled in a pari‑mutuel pool shall be deducted from the pari‑mutuel pool and shall be deposited daily in a trust account for the payment of purse amounts. In addition, twenty‑five per cent of any reduction in pari‑mutuel taxes each year resulting from the application of the hardship tax reduction credit determined pursuant to subsection I of this section shall be deposited in the trust account for supplementing purse amounts in an equitable manner over the racing meeting as determined by the commission. Notwithstanding any other provision of this subsection, the percentage paid by a commercial live dog racing permittee to the state does not apply to monies handled in a pari‑mutuel pool for wagering on simulcasts of out‑of‑state dog races. During a week in which a permittee conducts live racing at the permittee's racetrack enclosure, the permittee shall deduct from monies handled in a pari‑mutuel pool for wagering on simulcasts of out‑of‑state races and deposit daily in a trust account for the payment of purse amounts the same percentage of the pari‑mutuel pool as is deducted for purses for live races unless otherwise agreed by written contract. Unless otherwise agreed by written contract, if the commission reasonably determines that live racing will not be conducted within one calendar year at a racetrack enclosure, the permittee shall deduct from monies handled in a pari‑mutuel pool for wagering on simulcasts of out‑of‑state races and deposit daily in a trust account to supplement purses of any dog track where live racing is conducted within a one hundred mile radius. The supplementing provided by this subsection shall be in the most equitable manner possible as determined by the commission. The permittee shall allocate the funds in the trust account and pay purse amounts at least biweekly. The permittee may, at the permittee's discretion, may pay additional amounts to augment purses from the amounts received by the permittee under this subsection.

C. During the period of a permit for horse, harness or dog racing, the permittee which that conducts such meeting may deduct up to and including twenty‑five per cent of the total amount handled in the regular pari‑mutuel pools and may, at the permittee's option, may deduct up to and including thirty per cent of the total amount handled in the exacta, daily double, quinella and other wagering pools involving two horses or dogs, and up to and including thirty‑five per cent of the total amount handled in the trifecta or other wagering pools involving more than two horses or dogs in one or more races. The amounts if deducted shall be distributed as prescribed in subsection D of this section and section 5‑111.02 for horse or harness racing permittees. For dog racing permittees, unless otherwise agreed by written contract, the permittee shall allocate to purses from amounts wagered on live racing conducted in this state an amount equal to fifty per cent of any amounts that are deducted pursuant to this subsection in excess of twenty per cent of the total amount handled in the regular pari‑mutuel pools, twenty‑one per cent of the total amount handled in the exacta, daily double, quinella and other wagering pools involving two dogs or twenty‑five per cent of the total amount handled in the trifecta or other wagering pools involving more than two dogs in one or more races. For dog racing permittees the percentages prescribed in subsection B of this section shall be distributed to the state and to the trust account for payment of purse amounts and the permittee shall receive the balance. If the dog racing permittee has made capital improvements, the distribution to the state shall be adjusted as provided in section 5‑111.03. Monies deposited in the trust account for payment of purses pursuant to this subsection shall be in addition to amounts deposited pursuant to subsection B of this section.

D. During the period of a permit for horse or harness racing, the state shall receive two per cent of the gross amount of the first one million dollars of the daily pari‑mutuel pools and five per cent of the gross amount exceeding one million dollars of the daily pari‑mutuel pools. Notwithstanding any other provision of this subsection, the percentage paid by a permittee to the state does not apply to monies handled in a pari‑mutuel pool for wagering on simulcasts of out‑of‑state horse races by a commercial live horse racing permittee or on simulcasts of out-of-state harness races by a commercial live harness racing permittee. The permittee shall retain the balance of the total amounts deducted pursuant to subsection C of this section. Of from the amount retained by the permittee, less the amount deducted pursuant to subsection C of this section from wagering on live or simulcast horse racing or simulcast harness racing, after deductions for allocations to this state as provided in subsection C of this section and the amounts payable to the permittee for capital improvements pursuant to section sections 5‑111.02 and 5-111.03, breakage distributed to the permittee pursuant to section 5‑111.01 and other applicable state, county and city transaction privilege or other taxes, unless otherwise agreed by written contract, a commercial horse or harness racing permittee shall allocate fifty per cent shall of the balance to be used for purses at the race track enclosure where the commercial horse or harness racing permittee conducts live racing. A commercial live dog racing permittee shall allocate amounts net of costs of advertising deducted from the proceeds received from wagering on simulcast harness racing in the same manner provided in subsection B of this section. Unless otherwise agreed by written contract, fifty per cent of the revenues received by the a commercial live horse racing permittee from simulcasting races as provided in section 5‑112, net of costs of advertising, shall be utilized as a supplement to the general purse structure. All amounts which that are deducted from the pari‑mutuel pool for purses pursuant to this section and sections 5‑111.01, 5‑112 and 5‑114 and revenues which proceeds that are received from simulcasting and which that are to be used as a supplement to the general purse structure pursuant to this subsection shall be deposited daily into a trust account for the payment of purse amounts.

E. Any county fair racing association may apply to the commission for one racing meeting each year and the commission shall set the number of days and the dates of such meetings. A racing meeting conducted under this subsection shall be operated in such manner that all profits accrue to the county fair racing association, and the county fair racing association may deduct from the pari‑mutuel pool the same amount as prescribed in subsection C of this section. All county fair racing meetings, whether conducted by county fair racing associations under the provisions of this subsection or by an individual, corporation or association other than a county fair racing association, are exempt from the payment to the state of the percentage of the pari‑mutuel pool prescribed by subsection D of this section and are also exempt from the provisions of section 5‑111.01.

F. Monies from charity racing days are exempt from the state percentage of the pari‑mutuel pool prescribed in this section.

G. Sums held by a permittee for payment of unclaimed pari‑mutuel tickets are exempt from the provisions of the revised Arizona unclaimed property act, title 44, chapter 3.

H. All of the amounts received by a permittee from the gross amount of monies handled in a pari‑mutuel pool and all amounts held by a permittee for payment of purses pursuant to this section and sections 5‑111.01, 5‑112 and 5‑114 are exempt from the provisions of title 42, chapter 5.

I. On August 1 of each year a permittee is eligible for a hardship tax credit pursuant to this subsection. For the purposes of this subsection, "permittee" shall include includes any person who has succeeded to the interest of a permittee and who is authorized to conduct racing at the facility for which the permit was issued. The department shall determine the amount of any hardship tax credit as follows:

1. Determine the percentage decrease in pari‑mutuel wagering by determining the percentage decrease in pari‑mutuel wagering between the base period amount and the amount of pari‑mutuel wagering in the previous fiscal year at the racetrack and the additional wagering facilities operated by the permittee. The base period amount is the highest total annual pari‑mutuel wagering at the racetrack and all additional wagering facilities as reported to the department for fiscal year 1989‑1990, 1990‑1991, 1991‑1992, 1992‑1993 or 1993‑1994.

2. Determine the permittee's hardship tax credit by multiplying the total pari‑mutuel tax due as a result of wagering at the racetrack and all additional wagering facilities for the previous fiscal year before applying any hardship tax credit amount by the percentage decrease in pari‑mutuel wagering determined pursuant to paragraph 1 of this subsection and multiplying the result by three.

3. The permittee's pari‑mutuel tax due as otherwise determined under subsections B and D of this section shall be reduced for the current period and any future periods by an amount equal to the amount of the hardship tax credit determined pursuant to this subsection. The hardship tax credit is in addition to any other tax exemptions, rebates and credits. END_STATUTE

Sec. 3. Section 5-112, Arizona Revised Statutes, is amended to read:

START_STATUTE5-112. Wagering legalized; simulcasting of races; unauthorized wagering prohibited; classification

A. Except as provided in subsection L of this section, section 5‑101.01, subsection G and title 13, chapter 33, any person within the enclosure of a racing meeting held pursuant to the provisions of this article may wager on the results of a race held at the meeting or televised to the racetrack enclosure by simulcasting pursuant to this section by contributing money to a pari‑mutuel pool operated by the permittee as provided by this article.

B. The department may, upon request by a permittee, may grant permission for electronically televised simulcasts of horse, harness or dog races to be received by the permittee commercial or county fair racing permittee at the permittee's racing enclosure. In counties having a population of one million five hundred thousand persons or more according to the most recent United States decennial census, the simulcasts shall be received at the racetrack enclosure where a horse, harness or dog racing meeting is being conducted, provided that the simulcast may only be received during, immediately before or immediately after a minimum of nine posted eight races have been posted for that racing day. In counties having a population of five hundred thousand persons or more, but less than one million five hundred thousand persons according to the most recent United States decennial census, the simulcasts shall be received at the racetrack enclosure where a horse, harness or dog racing meeting is being conducted provided that the simulcast may only be received during, immediately before or immediately after a minimum of four posted races for that racing day. In all other counties, the simulcasts shall be received at a racetrack enclosure at which authorized racing has been conducted whether or not posted races have been offered for the day the simulcast is received. The simulcasts shall be limited to horse, harness or dog races. The simulcasts shall be limited to the same type of racing as authorized in the permit for live racing conducted by the permittee. The department may, upon request by a permittee, may grant permission for the permittee to transmit the live race from the racetrack enclosure where a horse, harness or dog racing meeting is being conducted to a facility or facilities in another state. All simulcasts of horse or harness races shall comply with the interstate horse racing act of 1978 (P.L. 95‑515; 92 Stat. 1811; 15 United States Code chapter 57). All forms of pari‑mutuel wagering shall be allowed on live or simulcast horse, harness or dog races televised by simulcasting that are available for wagering and that are conducted by a commercial horse or dog racing permittee under this chapter. All monies wagered by patrons on these horse, harness or dog races shall be computed in the amount of money wagered each racing day for purposes of section 5‑111.

C. Notwithstanding subsection B of this section, in counties having a population of one million five hundred thousand persons or more according to the most recent United States decennial census, simulcasts may be received at the racetrack enclosure and at the permittee may offer pari-mutuel wagering on the simulcasts at any additional wagering facility used by a permittee for handling wagering as provided in section 5‑111, subsection A during a permittee's racing meeting as approved by the commission, whether or not the simulcasts are televised to the additional wagering facility and whether or not posted races have been conducted on the day the simulcast is received, if:

1. For horse and harness racing, the permittee's racing permit requires the permittee to conduct a minimum of nine eight posted live races per day but not less than forty-five posted live races on an average of five racing days each week at the permittee's racetrack enclosure during the period beginning on October 1 and ending on the first full week in May, unless a lesser number of live races is agreed to in a written agreement between the permittee and the group representing the majority of the horsemen at the permittee's racing facility that has represented the horsemen for not less than five years prior to the agreement if the agreement does not reduce the number of posted live race days during the period to less than one hundred fifty posted live race days.

2. For dog racing, the permittee is required to conduct a minimum of twelve posted races on each of five days each week for fifty weeks during a calendar year at the permittee's racetrack enclosure.

D. Notwithstanding subsection B of this section, in counties having a population of five hundred thousand persons or more but less than one million five hundred thousand persons according to the most recent United States decennial census, simulcasts may be received at the racetrack enclosure and the permittee may offer pari-mutuel wagering on the simulcasts at any additional wagering facility used by a permittee for handling wagering as provided in section 5‑111, subsection A during a permittee's racing meeting as approved by the commission, whether or not the simulcasts are televised to the additional wagering facility and whether or not posted races have been conducted on the day the simulcast is received, subject to the following conditions:

1. For horse and harness racing, the permittee may conduct wagering on dark day simulcasts for twenty days, provided the permittee conducts a minimum an average of seven posted races on each of the racing days mandated in the permittee's commercial racing permit. In order to conduct wagering on dark day simulcasts for more than twenty days, the permittee is required to conduct a minimum of seven posted races on one hundred forty racing days at the permittee's racetrack enclosure.

2. For dog racing, the permittee is required to conduct a minimum of nine posted races on each of four days each week for fifty weeks during a calendar year at the permittee's racetrack enclosure.

E. In an emergency and upon a showing of good cause by a permittee, the commission may grant an exception to the minimum racing day requirements of subsections C and D of this section.

F. The minimum racing day requirements of subsections C and D of this section shall be computed by adding all racing days, including any county fair racing days operated in accordance with section 5‑110, subsection F G, allotted to the permittee's racetrack enclosure in one or more racing permits and all racing days allotted to the permittee's racetrack enclosure pursuant to section 5‑110, subsection H I.

G. Notwithstanding subsection B of this section and subject to subsections C and D of this section, during the period of the permit for horse racing, wagering on dark day simulcasts of horse races at a permittee's additional wagering facilities shall only be allowed for a maximum number of days equal to the number of days of live horse racing scheduled to be conducted at that permittee's racetrack enclosure during the permittee's racing meeting, and during the period of a permit for dog racing, wagering on dark day simulcasts of dog races at a permittee's additional wagering facilities shall only be allowed for a maximum number of days equal to the number of days of live dog racing scheduled to be conducted at that permittee's racetrack enclosure during the permittee's racing meeting. The number of days allowed for dark day simulcasting under this subsection shall be computed by adding all racing days, including any county fair racing days operated in accordance with section 5‑110, subsection F G, allotted to the permittee's racetrack enclosure in one or more racing permits and all racing days allocated to the permittee's racetrack enclosure pursuant to section 5‑110, subsection H I.

H. Simulcast signals or teletracking of simulcast signals does not prohibit live racing or teletracking of that live racing in any county at any time.

I. Except as provided in subsection L of this section, section 5‑101.01, subsection G and title 13, chapter 33, any person within a racetrack enclosure or an additional facility authorized for wagering pursuant to section 5‑111, subsection A may wager on the results of a race televised to the facility permittee's live racing enclosure pursuant to section 5‑111, subsection A by contributing to a pari‑mutuel pool operated as provided by this article.

J. Notwithstanding subsection B of this section, the department, in counties having a population of one million five hundred thousand persons or more according to the most recent United States decennial census, may, upon and on request by a permittee for one day each year, may grant permission for simulcasts to be received without compliance with the minimum of nine eight posted races requirement.

K. Except as provided in this article and in title 13, chapter 33, all forms of wagering or betting on the results of a race, including but not limited to buying, selling, cashing, exchanging or acquiring a financial interest in pari‑mutuel tickets, except by operation of law, whether the race is conducted in this state or elsewhere, are illegal.

L. Until June 1, 2003, a permittee shall not knowingly permit a minor to be a patron of the pari‑mutuel system of wagering. Beginning on June 1, 2003, A permittee shall not knowingly permit a person who is under twenty‑one years of age to be a patron of the pari‑mutuel system of wagering.

M. Except as provided in title 13, chapter 33, any person violating any provision of who violates this article with respect to any wagering or betting, whether the race is conducted within or without this state, is guilty of a class 6 felony.

N. Except as otherwise provided in this chapter for harness racing, simulcasting may only be authorized for the same type of racing authorized by a permittee's live racing permit.

O. Any person other than a permittee under this article who accepts a wager or bet on the results of a race whether the race is conducted within or without this state, including buying, selling, cashing, exchanging or acquiring a financial interest in a pari-mutuel ticket from a person in this state outside of a racing enclosure or additional wagering facility that is approved by the commission and located in this state is guilty of a class 6 felony.

P. Pursuant to the provisions of section 13-108, a pari-mutuel wager or bet placed or made by a person in this state shall be deemed for all purposes to occur within this state. END_STATUTE

Sec. 4. Exemption from rule making

For the purposes of establishing the regulatory fee for conducting simulcast harness racing pursuant to section 5-110, subsection D, Arizona Revised Statutes, as amended by this act, the department of racing is exempt from the rule making requirements of title 41, chapter 6, Arizona Revised Statutes, for six months after the effective date of this act, except that the department shall file the rules pursuant to title 41, chapter 6, Arizona Revised Statutes, and hold at least one public hearing and the rules must be filed with the secretary of state.