A.R.S. § 5-1169 — Arizona Code / Title 5 / Chapter 9 / Article 3 / Section 1169
5-1169 Bond purchase for cancellation
Status: in_force

5-1169. Bond purchase for cancellation

(Conditionally Rpld.)

The authority board may purchase bonds for cancellation, using any available monies, at a price not exceeding the following:

1. If the bonds are redeemable at the time of purchase, the applicable redemption price plus accrued interest to the next interest payment date.

2. If the bonds are not redeemable at the time of purchase, the applicable redemption price on the first date after purchase on which the bonds become subject to redemption plus accrued interest to that date.
A.R.S. § 5-535 — Arizona Code / Title 5 / Chapter 5.1 / Article 1 / Section 535
5-535 Securing principal and interest; refunding bonds
Status: in_force

5-535. Securing principal and interest; refunding bonds

A. In connection with issuing state lottery revenue bonds authorized by this article and to secure the principal and interest on the bonds, the director may:

1. Segregate the state lottery revenue bond debt service fund into one or more accounts and subaccounts and provide that bonds issued under this article may be secured by a lien on all or part of the monies paid into the state lottery revenue bond debt service fund or into any account or subaccount in the fund.

2. Provide that the bonds issued under this article are secured by a first lien on the monies paid into the state lottery revenue bond debt service fund and paid into the state lottery fund to be placed in the state lottery bond debt service fund as provided in this article and pledge and assign to or in trust for the benefit of the holder or holders of the bonds all or part of the monies in the state lottery revenue bond debt service fund, in any account or subaccount in the state lottery revenue bond debt service fund or in the state lottery revenue bond proceeds fund as is necessary to secure and pay the principal, the interest and any premium on the bonds as they come due.

3. Establish priorities among bondholders based on criteria adopted by the director.

4. Set aside, regulate and dispose of reserves and sinking accounts.

5. Prescribe the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent to and the manner in which the consent may be given.

6. Provide for payment of bond related expenses from the proceeds of the sale of the bonds or other revenues authorized by this article and available to the director.

7. Provide for the services of trustees, cotrustees, agents and consultants and other specialized services with respect to the bonds.

8. Take any other action that in any way may affect the security and protection of the bonds or interest on the bonds.

9. Refund any bonds issued by the director by issuing new bonds, if these bonds are secured from the same source of revenues as the bonds authorized by this article.

10. Issue bonds partly to refund outstanding bonds and partly for any other purpose consistent with this article.

B. If state lottery revenue bonds are issued, the director shall provide to the state lottery commission a schedule of the amount needed to pay each fiscal year's debt service on outstanding state lottery revenue bonds, including sinking fund and reserve fund deposits pursuant to the terms of the bonds, bond related expenses and amounts payable with respect to bond related obligations.
A.R.S. § 5-532 — Arizona Code / Title 5 / Chapter 5.1 / Article 1 / Section 532
5-532 Authorization of state lottery revenue bonds
Status: in_force

5-532. Authorization of state lottery revenue bonds

A. The director shall issue state lottery revenue bonds pursuant to this article in an amount sufficient to provide monies to:

1. Deposit in the state general fund by December 31, 2010 an amount of not more than four hundred fifty million dollars.

2. Pay bond related expenses.

3. Pay fees, charges and expenses incurred with respect to bond related obligations.

4. Fully or partially fund any reserves or sinking accounts for debt service on the bonds established by the bond documents.

B. The director shall authorize the bonds by an appropriate document signed by the director.  The bond authorizing document shall prescribe:

1. The fixed or variable rate or rates of interest, the date or dates on which interest is payable and the denominations of the bonds.

2. The date or dates of the bonds and maturity, within twenty years after the date of issuance.

3. The form of the bonds.

4. The manner of executing the bonds.

5. The medium and place of payment.

6. The terms of redemption, which may provide for a premium for early redemption.

C. The bonds issued pursuant to this article shall be known as state lottery revenue bonds.

D. The director shall notify the joint legislative budget committee of the bond's proposed terms and conditions at least ten days before an initial public offering document is released.
A.R.S. § 5-835 — Arizona Code / Title 5 / Chapter 8 / Article 2 / Section 835
5-835 Tourism revenue clearing account
Status: in_force

5-835. Tourism revenue clearing account

A. The authority shall maintain a tourism revenue clearing account within the general fund consisting of monies transmitted to the authority by the state treasurer pursuant to sections 5-839 and 5-840. On the second Tuesday of each month, the treasurer of the authority shall distribute all monies in the account as provided by this section.

B. For as long as the authority owes debt service on bonds or other debt obligations payable from revenues or monies deposited in the tourism revenue clearing account, the treasurer shall distribute all monies in the account in the following order of priority:

1.  To the debt service account established by section 5-865, an amount equal to one-twelfth of the annual debt service on bonds and other debt obligations issued by the authority for not more than one-half of three hundred thirty-one million dollars of the capital costs associated with constructing the multipurpose facility, plus interest earned on any monies escrowed before payment to the debt service account, amortized over a thirty year repayment term and that are secured in whole or in part by and payable from revenues or monies deposited in the tourism revenue clearing account, or a lesser amount as determined by the authority.

2. To the tourism fund established by section 41-2306, an amount equal to one-twelfth of four million dollars over the first twelve months of distribution, increased in each subsequent twelve month period by an additional five per cent over the preceding twelve months’ distribution.

3. To the cactus league promotion account established by section 5-837, an amount equal to:

During the first eighty-four months             $250,000 per month

During the eighty-fifth through one

hundred twentieth months                      $333,333 per month

During the one hundred twenty-first through

one hundred forty-fourth months               $500,000 per month

During the one hundred forty-fifth through

one hundred ninety-second months              $583,333 per month

During the one hundred ninety-third through

two hundred fortieth months                   $666,667 per month

During the two hundred forty-first through

two hundred eighty-eighth months              $750,000 per month

During the two hundred eighty-ninth through

three hundred twelfth months                  $833,333 per month

During the three hundred thirteenth through

three hundred sixtieth months                 $916,667 per month

4. To the youth and amateur sports facilities account established by section 5-838, an amount equal to one-twelfth of one million dollars over the first twelve months of distribution, increased in each subsequent twelve month period by an additional one hundred thousand dollars over the prior twelve months' distribution.

5. To the operating account established by section 5-836, an amount equal to one-twelfth of the authority's adopted budget for the period for the purposes set forth in section 5-836, subsection B, paragraphs 1 and 2.

6. To the youth and amateur sports facilities reserve established by section 5-838, subsection B, an amount required to be distributed pursuant to paragraph 4 during the preceding fiscal year to the youth and amateur sports facilities account established by section 5-838, subsection A, less any amount on deposit in the youth and amateur sports facilities reserve.

7. To the operating account established by section 5-836, any monies remaining unallocated each month.

C. After all bonds and other debt obligations of the authority that are secured in whole or in part by and payable from revenues or monies deposited in the tourism revenue clearing account are redeemed or fully provided for, the treasurer of the authority shall distribute all monies remaining in the account after the distributions provided for by subsection B, paragraphs 2, 3 and  4 of this section, and after the authority’s repair and replacement requirements are funded pursuant to section 5-836, subsection C, paragraph 2, as follows:

1. Seventy per cent to the tourism fund established by section 41-2306.

2. Thirty per cent to the cactus league promotion account established by section 5-837.
A.R.S. § 5-565.01 — Arizona Code / Title 5 / Chapter 5.1 / Article 2 / Section 565.01
5-565.01 Sale to persons using state issued electronic benefits transfer cards; violation; classification
Status: in_force

5-565.01. Sale to persons using state issued electronic benefits transfer cards; violation; classification

A. It is unlawful for a licensed agent to sell a lottery ticket or share to a person who uses either a public assistance voucher issued by any public entity or an electronic benefits transfer card issued by the department of economic security to purchase the ticket or share.

B. It is unlawful for a licensed agent to sell a lottery ticket or share during the same transaction in which a person uses either a public assistance voucher issued by any public entity or an electronic benefits transfer card issued by the department of economic security.

C. A person who violates this section is guilty of a class 3 misdemeanor.
A.R.S. § 5-401 — Arizona Code / Title 5 / Chapter 4 / Article 1 / Section 401
5-401 Definitions
Status: in_force

5-401. Definitions

In this chapter, unless the context otherwise requires:

1. "Adjusted gross receipts" means the receipts remaining after deducting the monies paid for prizes from gross receipts.

2. "Applicant" means a person, a group of persons or an organization that submits an application to the licensing authority for a license required under this chapter.

3. "Assistant" means a person who is not a manager, supervisor or proceeds coordinator, who assists in conducting bingo games and who is designated as an assistant in the application for a license.

4. "Auxiliary" means a formally organized body formed for the purpose of assisting a qualified organization in accomplishing its primary purposes and recognized by a licensee in writing to the licensing authority as the licensee for the purposes of this chapter.

5. "Charitable organization" means any organization including not more than one auxiliary of the organization, not for pecuniary profit, which is operated for charitable purposes within this state and which has been so engaged for two years prior to making application for a license under this article.

6. "Chartered branch or lodge or chapter of a national or state organization" means any branch or lodge or chapter of a national or state qualified organization.

7. "Equipment" means the receptacle and numbered objects drawn from it, the master board upon which such objects are placed as drawn, the cards or sheets bearing numbers or other designations to be covered and the objects used to cover them, the board or signs, however operated, used to announce or display the numbers or designations as they are drawn, the public address system, and all other articles essential to the operation, conduct and playing of bingo.

8. "Fraternal organization" means any organization within this state, except college and high school fraternities, not for pecuniary profit, which is a branch or lodge or chapter of a national or state organization and exists for the common business, brotherhood or other interests of its members and which national or state organization has so existed for two years in Arizona prior to making application for a license under this article. Fraternal organization shall also include not more than one auxiliary of such organization.

9. "Gross receipts" means the total of the following:

(a) The receipts from the sale of shares, tickets or rights in any manner connected with participation in a game of bingo or the right to participate therein, including any admission fee, charge for cards, daubers or other devices, the sale of equipment or supplies and all other miscellaneous receipts, excluding sales of food or beverages or other products which are not required to play bingo games.

(b) Interest collected on the special account or interest bearing accounts established pursuant to section 5-407.

10. "Homeowners association" means a nonprofit corporation or association that is established to own, lease or manage common, limited access lots, parcels, areas, grounds or streets of a real estate development and that has continuously engaged in those activities in this state for at least two years immediately before applying for a license.

11. "Lawful purposes" means the expenditure of net proceeds of a game of bingo exclusively by a licensee for the purposes of carrying out its mission and its aims or for the purpose of charity.

12. "Lawful use" means the devotion of the entire net proceeds of a game of bingo exclusively to a lawful purpose or to lawful purposes.

13. "License" means a license issued by the licensing authority pursuant to this article.

14. "Licensee" means any person or qualified organization to which a license has been issued by the licensing authority.

15. "Licensing authority" means the department of revenue.

16. "Local governing body" means the governing body of a city or town or the board of supervisors of the county for locations outside a city or town.

17. "Manager" means a person who has overall responsibility for conducting bingo games by a licensee and is designated as a manager in the application for a license.

18. "Member" means an individual who has qualified for membership in a qualified organization or its auxiliary pursuant to its bylaws, articles of incorporation, charter, rules or similar written instrument and who has been a member in good standing for at least two years.

19. "Net proceeds" means the receipts less such expenses, charges, fees and deductions as are specifically authorized under this article.

20. "New member" means an individual who has qualified and been approved by the appropriate parent organization or state or national organization for membership in a qualified organization including auxiliaries pursuant to its bylaws, articles of incorporation, charter, rules or similar written instrument and who has been a member in good standing for at least thirty days but less than two years.

21. "Occasion" means a gathering at which bingo games are played.

22. "Person" means a natural person, firm, association, corporation or other legal entity.

23. "Premises" means any room, hall, building, enclosure or outdoor area used for the purpose of playing a game of bingo. Premises shall not be subdivided to provide multiple premises.

24. "Proceeds coordinator" means a person who has primary responsibility for the use of bingo game proceeds in accordance with law and for all checks issued from bingo game proceeds and is designated as the proceeds coordinator in the application for a license.

25. "Qualified organization" means a homeowners association or any bona fide charitable, fraternal, religious, social, veterans' organization or volunteer firefighters organization, or nonprofit ambulance service as defined in section 41-1831 or any chartered branch or lodge or chapter of such national or state organization which operates without profit to its members and which has been in existence continuously for a period of two years in Arizona immediately before applying for a license under this article, and may include not more than one identified auxiliary of any such organization.

26. "Religious organization" means any organization, church, body of communicants or group, not for pecuniary profit, gathered in common membership for regular worship and religious observances and which organization has been so gathered or united for two years prior to making application for a license under this article. Religious organization shall also include not more than one auxiliary of the organization.

27. "Reporting period" means the applicable reporting period prescribed in section 5-413.

28. "Revocation" means the disciplinary termination of bingo license activity.

29. "Supervisor" means a person who is primarily responsible for the conduct of bingo games on each occasion including the supervision of all activities and the making of any report required by the licensing authority for the occasion.

30. "Suspension" means the disciplinary termination of bingo license activity for a period of less than five years.

31. "Veterans' organization" means any congressionally chartered organization within this state, or any branch, lodge or chapter of a national or state organization within this state, not for pecuniary profit, the membership of which consists of individuals who were members of the armed services or forces of the United States, which has been in existence for two years prior to making application for a license under this article.  Veterans' organization shall also include not more than one auxiliary of such organization.

32. "Volunteer firefighters organization" means any organization within this state, not for pecuniary profit, established pursuant to title 48, chapter 5 which has been in existence continuously for two years immediately before applying for a license under this article.
A.R.S. § 5-1210 — Arizona Code / Title 5 / Chapter 10 / Article 1 / Section 1210
5-1210 Violations; classification; penalties
Status: in_force

5-1210. Violations; classification; penalties

A. A person may not do any of the following:

1. Except as otherwise provided in this chapter, offer a fantasy sports contest in this state unless the person is licensed by the department.

2. Knowingly make a false statement on an application for a license under this chapter.

3. Knowingly provide false testimony to the department or any authorized representative of the department.

B. The department may not issue a license under this chapter to a person that violates subsection A of this section.

C. A person that violates subsection A, paragraph 1 of this section is guilty of a crime as follows:

1. For the first or second violation, the person is guilty of a class 3 misdemeanor.

2. For a third or subsequent violation, the person is guilty of a class 1 misdemeanor.

D. The department may issue a cease and desist order and obtain injunctive relief against a person that violates this chapter.

E. The department may impose a civil penalty of not more than $10,000 for a violation of this chapter, a rule adopted under this chapter or an order of the department.  A civil penalty imposed under this section is payable to this state and may be collected in a civil action brought by the department.

F. The department may suspend, revoke or restrict the license of a fantasy sports contest operator that violates this chapter, a rule adopted under this chapter or an order of the department.
A.R.S. § 5-403.01 — Arizona Code / Title 5 / Chapter 4 / Article 1 / Section 403.01
5-403.01 License location transfers
Status: in_force

5-403.01. License location transfers

A licensee shall not transfer the location for which a license is issued unless the governing body of the city or town or the board of supervisors of the county to which the license is proposed to be transferred gives prior written approval after a public hearing. The licensee shall transmit the approval document from the local governing body and its existing license to the licensing authority, and, upon a determination that the transfer would not result in a violation of any provision of this article, the licensing authority shall issue a new license identifying the new location. The transfer is not effective until the new license is issued. Temporary transfers of location are prohibited.
A.R.S. § 5-601.02 — Arizona Code / Title 5 / Chapter 6 / Article 1 / Section 601.02
5-601.02 New standard form of tribal-state gaming compact; effects
Status: reserved

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 Arizona commerce authority 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 Arizona commerce authority 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."
A.R.S. § 5-1163 — Arizona Code / Title 5 / Chapter 9 / Article 3 / Section 1163
5-1163 Authorization of bonds
Status: in_force

5-1163. Authorization of bonds

(Conditionally Rpld.)

A. The authority may issue bonds pursuant to this article in a principal amount that is necessary to:

1. Provide sufficient monies for any sports authority purposes.

2. Establish and fully or partially fund any required reserves or sinking accounts.

3. Issue refunding bonds to refund bonds issued by the authority if the authority board considers refunding to be expedient. The board may provide for investing and holding the proceeds of the refunding bonds in trust for the benefit of the holders of the bonds being refunded.

B. The authority board shall authorize the bonds by resolution.  The resolution shall prescribe:

1. The revenue sources that are pledged and dedicated to secure the bonds.

2. The rate or rates of interest, which may be fixed or variable, the date or dates on which interest is payable and the denominations of the bonds.

3. The date or dates of the bonds and maturity, which shall be within thirty years after the date of issuance.

4. The manner of executing the bonds.

5. The medium and place of payment.

6. The terms of redemption, which may provide for a premium for early redemption.
A.R.S. § 5-868 — Arizona Code / Title 5 / Chapter 8 / Article 3 / Section 868
5-868 Bond purchase; cancellation
Status: in_force

5-868. Bond purchase; cancellation

The board may purchase bonds for cancellation, using any available monies, at a price not exceeding the following:

1. If the bonds are redeemable at the time of purchase, the applicable redemption price plus accrued interest to the next interest payment date.

2. If the bonds are not redeemable at the time of purchase, the applicable redemption price on the first date after purchase on which the bonds become subject to redemption plus accrued interest to that date.
A.R.S. § 5-575 — Arizona Code / Title 5 / Chapter 5.1 / Article 2 / Section 575
5-575 Prizes; setoff for debts to state agencies; definitions
Status: in_force

5-575. Prizes; setoff for debts to state agencies; definitions

A. The commission shall establish a liability setoff program by which state lottery prize payments pursuant to section 5-573 may be used to satisfy debts which a person owes this state. The program shall comply with the standards and requirements prescribed by this section.

B. If a person owes an agency a debt, an agency may notify the commission, furnishing at least the state agency or program identifier, the first name, last name, middle initial and social security number of the debtor, and the amount of the debt. This information shall be in the form the commission prescribes. Each agency shall certify the information and update the information monthly. No information may be transmitted by the department of revenue to the commission if the transmission would violate title 42, chapter 2, article 1.

C. The commission shall match the information submitted by the agency with persons who are entitled to a state lottery prize payment in an amount of six hundred dollars or more. If there is a match, the commission shall set off the amount of the debt from the prize due and notify the person of the person's right to appeal to the appropriate court, or to request a review by the agency pursuant to agency rule. The person shall make such a request or appeal within thirty days after the setoff. If the setoff accounts for only a portion of the prize due, the remainder of the prize shall be paid to the person. The commission shall promptly transfer the setoff, less the amount of the commission's fee, to the agency.

D. If a person requests a review by the agency or provides the agency with proof that an appeal has been taken to the appropriate court within thirty days after the setoff and it is determined that the setoff was made in error under this section, the agency shall reimburse the person with interest as determined pursuant to section 42-1123.

E. The basis for a request for review shall not include the validity of the claim if its validity has been established at an agency hearing, by judicial review in a court of competent jurisdiction in this or any other state or by final administrative decision and shall state with specificity why the person claims the obligation does not exist or why the amount of the obligation is incorrect.

F. The commission may prescribe a fee to be collected from each agency utilizing the setoff procedure. The amount of the fee shall reasonably reflect the actual cost of the service provided.

G. If agencies have two or more delinquent accounts for the same person, the commission shall apportion the prize equally among them, except that a setoff to the department of economic security for overdue support has priority over all other setoffs.

H. If the prize is insufficient to satisfy the entire debt, the remainder of the debt may be collected by the agency as provided by law or resubmitted for setoff against any other prize awarded.

I. An agency shall not enter into an agreement with a debtor for the assignment of any prospective prize to the agency in satisfaction of the debt.

J. In this section:

1. "Agency" means a department, agency, board, commission or institution of this state. Agency also means a corporation under contract with this state that provides a service that would otherwise be provided by a department, agency, board, commission or institution of this state if the contract specifically authorizes participation in the liability setoff program and the attorney general's office has reviewed the contract and approves of such authorization. The participation in the liability setoff program is limited to debts related to the services the corporation provides for or on behalf of this state.

2. "Debt" means an amount over one hundred dollars owed to an agency by a person and may include interest, penalties, charges, costs, fees or any other amount. Debt also includes monies owed by a person for overdue support and referred to the department of economic security for collection.

3. "Overdue support" means a delinquency in court ordered payments for support or maintenance of a child or for spousal maintenance to the parent with whom the child is living if child support is also being enforced pursuant to an assignment or application filed under 42 United States Code section 654(6).
A.R.S. § 5-1317 — Arizona Code / Title 5 / Chapter 11 / Article 1 / Section 1317
5-1317 Sports governing body agreements
Status: in_force

5-1317. Sports governing body agreements

This chapter does not prohibit a sports governing body on whose events the department has authorized wagering from entering into agreements with licensees in which the sports governing body may share in the amount bet from sports wagering on the events of the sports governing body.  A sports governing body is not required to obtain a license or any other approval from the department to lawfully accept such amounts.
A.R.S. § 5-396.01 — Arizona Code / Title 5 / Chapter 3 / Article 10 / Section 396.01
5-396.01 Aggravated operating or actual physical control of a motorized watercraft while under the influence of intoxicating liquor or drugs; forfeiture of motorized watercraft; disposition
Status: in_force

5-396.01. Aggravated operating or actual physical control of a motorized watercraft while under the influence of intoxicating liquor or drugs; forfeiture of motorized watercraft; disposition

A. If a person is convicted of violating section 5-396 the court, in addition to any other penalty imposed by law, shall order the motorized watercraft owned and operated by the person at the time of the offense forfeited in the same manner as provided under title 13, chapter 39.

B. A motorized watercraft used by any person as a common carrier in the transaction of business as a common carrier is not subject to forfeiture unless it appears that the owner or other person in charge of the vehicle consented to or was privy to a violation described in subsection A of this section.

C. Any property that is subject to forfeiture and all interests in property that are forfeited under this section shall be disposed of and allocated in the same manner as provided in title 13, chapter 39, except that all monies that are obtained as a result of forfeiture under this section shall be deposited, pursuant to sections 35-146 and 35-147, in the state general fund.
A.R.S. § 5-1301 — Arizona Code / Title 5 / Chapter 11 / Article 1 / Section 1301
5-1301 Definitions
Status: in_force

5-1301. Definitions

In this chapter, unless the context otherwise requires:

1. "Adjusted gross event wagering receipts" means an event wagering operator's gross wagering receipts, excluding voided bets, minus winnings paid to authorized participants and any federal excise tax. A deduction from adjusted gross event wagering receipts equal to the value of free bets or promotional credits redeemed by authorized participants may be taken as provided in this paragraph.  The deduction under this paragraph for free bets or promotional credits is limited to the first five years following the effective date of this section as follows:

(a) For years one and two, a deduction not to exceed twenty percent of an event wagering operator's gross wagering receipts.

(b) For year three, a deduction not to exceed fifteen percent of an event wagering operator's gross wagering receipts.

(c) For years four and five, a deduction not to exceed ten percent of an event wagering operator's gross wagering receipts.

(d) For year six and each year thereafter, a deduction of free bets is not allowed. January 1 following the year in which the event wagering operator begins event wagering operations is considered the first year of event wagering for the purposes of this paragraph. An event wagering operator may deduct up to twenty percent of an event wagering operator's gross wagering receipts during any period that the operator conducts event wagering before January 1 of the first year of event wagering operations.

2. "Department" means the department of gaming.

3. "E-sport" means an organized, multiplayer video game competition, particularly between professional players, individually or as teams.

4. "Event wagering":

(a) Means accepting wagers on sports events or other events, portions of sports events or other events, the individual performance statistics of athletes in a sports event or combination of sports events or the individual performance of individuals in other events or a combination of other events by any system or method of wagering, including in person or over the Internet through websites and on mobile devices.

(b) Does not include a fantasy sports contest as defined in section 5-1201.

5. "Event wagering employee" means an employee of an event wagering operator, sports facility, management services provider or limited event wagering operator who is directly involved in the management or control of the conduct of event wagering under this chapter in this state.

6. "Event wagering facility" means a facility at which event wagering is conducted under this chapter.

7. "Event wagering operator" means either:

(a) An owner or operator of an Arizona professional sports team or franchise, an operator of a sports facility in this state that hosts an annual tournament on the PGA tour or a promoter of a national association for stock car auto racing national touring race in this state, or the designee of such an owner, operator or promoter, who is licensed to offer event wagering under this chapter.  If an owner, operator or promoter that qualified for an event wagering operator license appoints a designee, the designee will be considered the event wagering operator and the licensee with respect to the applicable license for the purposes of this chapter.

(b) An Arizona Indian tribe or an entity fully owned by an Arizona Indian tribe, or its designee, licensed to operate only mobile event wagering outside the boundaries of its Indian lands and throughout this state if it has signed the most recent tribal-state gaming compact and any applicable appendices or amendments.  If an Indian tribe that qualified for an event wagering operator license appoints a designee, the designee will be considered the event wagering operator and the licensee with respect to the applicable license for the purposes of this chapter.

8. "Limited event wagering operator" means a racetrack enclosure or additional wagering facility that holds a permit issued by the division of racing to offer wagers on horseracing and that is licensed under this chapter.

9. "Official league data" means statistics, results, outcomes and other data related to a sports event or other event obtained pursuant to an agreement with the relevant sports governing body or an entity expressly authorized by the sports governing body to provide such information to licensees that authorizes the use of such data for determining the outcome of sports wagers on sports events or other events.

10. "Licensee" means a person that holds an event wagering operator license, limited event wagering license, supplier license or management services provider license.

11. "Management services provider" means a person that operates, manages or controls event wagering authorized by this chapter on behalf of an event wagering operator or limited event wagering operator, including developing or operating event wagering platforms and providing odds, lines and global risk management, and may provide services to more than one licensed event wagering operator or licensed limited event wagering operator.

12. "Other event" means a competition of relative skill or an event authorized by the department under this chapter.

13. "Person" means an individual, partnership, committee, association, corporation, Indian tribe or an entity fully owned by an Indian tribe, or any other organization or group of persons.

14. "Professional sport" means a sport conducted at the highest level league or organizational play for its respective sport and includes baseball, basketball, football, golf, hockey, soccer and motorsports.

15. "Prohibited conduct" includes any statement, action or other communication intended to unlawfully influence, manipulate or control a betting outcome of a sports event or other event of any individual occurrence or performance in a sports event or other event in exchange for financial gain or to avoid financial or physical harm.

16. "Prohibited participant" means:

(a) Any individual whose participation may undermine the integrity of the wagering, the sports event or the other event.

(b) Any individual who is prohibited from placing a wager as an agent, proxy or because of self-exclusion.

(c) Any individual who is an athlete, coach, referee, player, trainer or personnel of a sports organization in any sports event or other event overseen by that individual's sports organization who, based on information that is not publicly available, has the ability to determine or to unlawfully influence the outcome of a wager.

(d) An individual who holds a position of authority or influence sufficient to exert influence over the participants in a sporting contest, including coaches, managers, handlers and athletic trainers, such that their actions can affect the outcome of a wager.

(e) An individual with access to exclusive information on any sports event or other event overseen by that individual's sports governing body that is not publicly available information or any individual identified by any lists provided by the sports governing body to the department.

17. "Sports event" means a professional sport or athletic event, a collegiate sport or athletic event, a motor race event, an e-sport event or an olympic event.

18. "Sports facility" means a facility that is owned by a commercial, state or local government or quasi-governmental entity that hosts professional sports events and that holds a seating capacity of more than ten thousand persons at its primary facility, one location in this state that hosts an annual golf tournament on the PGA tour and one location that holds an outdoor motorsports facility that hosts a national association for stock car auto racing national touring race.

19. "Sports governing body" means an organization headquartered in the United States that prescribes final rules and enforces codes of conduct with respect to a sports event and participants in a sports event.

20. "Tier one sports wager" means a sports wager that is determined solely by the final score or final outcome of the sports event and that is placed before the sports event has begun.

21. "Tier two sports wager" means a sports wager that is not a tier one sports wager.

22. "Supplier" means a person that manufactures, distributes or supplies event wagering equipment or software, including event wagering systems.

23. "Wager":

(a) Means a sum of money or thing of value risked on an uncertain occurrence.

(b) Includes tier one and tier two sports wagers, single-game bets, teaser bets, parlays, over-under bets, moneyline bets, pools, exchange wagering, in-game wagering, in-play bets, proposition bets, straight bets and other wagers approved by the department.
A.R.S. § 5-1177 — Arizona Code / Title 5 / Chapter 9 / Article 3 / Section 1177
5-1177 Validity of bonds; legal opinion
Status: in_force

5-1177. Validity of bonds; legal opinion

(Conditionally Rpld.)

A. This article constitutes full authority for authorizing and issuing bonds without reference to any other law of this state.  No other law with regard to authorizing or issuing obligations or that in any way impedes or restricts performing the acts authorized by this article may be construed to apply to any proceedings taken or acts done pursuant to this article.

B. The validity of bonds issued under this article does not depend on and is not affected by the legality of any proceeding relating to the acquisition, construction, improvement, operation or maintenance of a stadium or multipurpose facility for which the bonds are issued.

C. The authority board may submit any bonds to be issued under this article to a nationally recognized bond counsel after all proceedings for authorizing the bonds have been completed.  On submission the counsel shall examine and pass on the validity of the bonds and the regularity of the proceedings.  If the proceedings comply with this article, and if the bonds when delivered and paid for will constitute binding and legal obligations of the authority, the counsel shall certify on the back of each bond, in substance, that it is issued according to the constitution and laws of this state and that the interest on the bonds will be exempt from state taxes as provided by law.

D. The bonds shall recite that they are regularly issued pursuant to this article.  That recital, together with the legal opinion under subsection C, constitutes prima facie evidence of the legality and validity of the bonds. From and after the sale and delivery of the bonds, they are incontestable by this state or the authority.
A.R.S. § 5-812 — Arizona Code / Title 5 / Chapter 8 / Article 1 / Section 812
5-812 Performance audit
Status: in_force

5-812. Performance audit

A. Beginning not later than 2004 and at least every fifth year thereafter, the auditor general shall conduct a performance audit, as defined in section 41-1278, of the authority.

B. On or before November 30 of the respective year the auditor general shall issue a public report of the performance audit including findings and specific recommendations for statutory and administrative changes to improve the operation of the authority. The auditor general shall submit copies of the report to the governor, president of the senate, speaker of the house of representatives, secretary of state and the director of the Arizona state library, archives and public records.
A.R.S. § 5-1203 — Arizona Code / Title 5 / Chapter 10 / Article 1 / Section 1203
5-1203 Prohibited employees; procedures and controls
Status: in_force

5-1203. Prohibited employees; procedures and controls

A. The fantasy sports contest operator may not employ an individual and, if already employed, shall terminate an employee who is identified through regulations issued by the department if the individual meets any of the following criteria:

1. Has been convicted of any gaming offense.

2. Has been convicted of a felony in the seven years before submission of the employment application unless that felony has been set aside.

3. Has ever been convicted of a felony related to extortion, burglary, larceny, bribery, embezzlement, robbery, racketeering, money laundering, forgery, fraud, murder, voluntary manslaughter or a sexual offense that requires the individual to register pursuant to section 13-3821.

4. Has knowingly and wilfully provided materially important false statements or information or omitted materially important information on the individual's employment application or background questionnaire.

5. Is an individual whose prior activities, criminal record, if any, or reputation, habits and associations pose a threat to the public interest or to the effective regulation and control of gaming or create or enhance the dangers of unsuitable, unfair or illegal practices, methods and activities in conducting gaming or carrying on the business and financial arrangements incidental to gaming.

B. As a condition of licensure, a fantasy sports contest operator must submit to and receive approval from the department for commercially reasonable procedures and internal controls intended to do all of the following:

1. Prevent the fantasy sports contest operator or its owners, directors, officers and employees and any relative of any of these individuals living in the same household from participating in a fantasy sports contest offered to the public.

2. Prevent the employees or agents of the fantasy sports contest operator from sharing protected information with third parties unless the protected information is otherwise made publicly available.

3. Prevent participants and officials in an athletic event from participating in a fantasy sports contest that is based on the athletic event.

4. Establish the number of entries a single fantasy sports contest player may enter in a single fantasy sports contest and take reasonable steps to prevent fantasy sports contest players from submitting more than the allowable number of entries.

5. Identify each highly experienced player by a symbol attached to the highly experienced player's username.

6. Offer some fantasy sports contests that are open only to players other than highly experienced players.

7. Either of the following:

(a) Segregate the deposits in the fantasy sports contest players' accounts from operational money.

(b) Maintain a reserve in the form of cash, cash equivalents, payment processor reserves, payment processor receivables, an irrevocable letter of credit, a bond or a combination of these, the aggregate amount of which exceeds the total dollar value amount of deposits in the fantasy sports contest players' accounts.  The reserve may not be used for operational activities.

8. Ensure compliance with the applicable state and federal requirements to protect the privacy and online security of a fantasy sports contest player and the fantasy sports contest player's account.

9. Otherwise ensure the integrity of fantasy sports contests.

C. A licensed fantasy sports contest operator shall comply with the procedures and internal controls that are submitted to and approved by the department under subsection B of this section.  A licensed fantasy sports contest operator may make technical adjustments to its procedures and internal controls if the adjustments are not material and it notifies the department within twenty-one days of the changes becoming effective and continues to meet or exceed the standards required by this chapter and any rules adopted by the department.

D. Procedures submitted to the department under subsection B of this section are confidential and privileged and are not subject to disclosure under title 39, chapter 1, article 2.
A.R.S. § 5-568 — Arizona Code / Title 5 / Chapter 5.1 / Article 2 / Section 568
5-568 Disposition of unclaimed prize money
Status: in_force

5-568. Disposition of unclaimed prize money

Unclaimed prize money for the prize on a winning ticket or share shall be retained for the person entitled to the prize for one hundred eighty days after the drawing in which the prize was won in the case of a drawing prize and for one hundred eighty days after the announced end of the game in question in the case of a prize determined in any manner other than by means of a drawing. If a claim is not made for the money within the applicable period, the money shall be transferred in the following amounts:

1. Fifty-five percent of the prize money shall be held in the state lottery prize fund for use as additional prizes in future games, except that if the amount of monies transferred by the commission pursuant to section 5-554, subsection H, paragraph 1 is less than $900,000 each fiscal year, the difference shall be transferred to the internet crimes against children enforcement fund established by section 41-199 and if the amount of monies transferred by the commission pursuant to section 5-554, subsection H, paragraph 2 is less than $100,000 each fiscal year, the difference shall be transferred to the victims' rights enforcement fund established by section 41-1727.

2. Thirty percent shall be transferred quarterly to the court appointed special advocate and vulnerable persons fund established by section 8-524.

3. Fifteen percent shall be transferred monthly to the tribal college dual enrollment program fund established by section 15-244.01. The amount transferred may not exceed $325,000 in any fiscal year.
A.R.S. § 5-326 — Arizona Code / Title 5 / Chapter 3 / Article 3 / Section 326
5-326 Nonresidents; registration; payment of fees; exemption
Status: in_force

5-326. Nonresidents; registration; payment of fees; exemption

A. A nonresident owner of a watercraft who establishes this state as the state of principal operation shall register and number that watercraft pursuant to this article and pay an additional boating safety infrastructure fee assessed pursuant to section 5-327 before placing that watercraft on the waterways of this state.

B. A member of the armed forces of the United States who is on active duty and stationed in this state for a period of at least thirty days immediately before applying for watercraft registration is exempt from this section.

C. The owner shall carry and display proof of payment of the fee required by this section in a manner prescribed by the commission while the watercraft is underway, moored or anchored on the waterways of this state.

D. Subsection A of this section does not apply to nonrecreational or commercial motorized watercraft.
A.R.S. § 5-571 — Arizona Code / Title 5 / Chapter 5.1 / Article 2 / Section 571
5-571 State lottery fund
Status: in_force

5-571. State lottery fund

The state lottery fund is established consisting of all revenues received from the sale of lottery tickets or shares, including revenues from games authorized pursuant to section 5-554, subsection G, the fees, if any, charged pursuant to section 5-554 and all other monies credited or transferred from any other fund or source pursuant to statute, with the exception of those monies apportioned for payment of prizes and deposited as provided in section 5-573.
A.R.S. § 5-371 — Arizona Code / Title 5 / Chapter 3 / Article 7 / Section 371
5-371 Boat liveries; requirements
Status: in_force

5-371. Boat liveries; requirements

A. The owner of a boat livery shall keep or cause to be kept a record of the name and address of the person or persons hiring any watercraft which is designed or permitted by him to be operated as a watercraft, the identification number thereof, the departure date and time and the expected and actual time of return. Such record shall be preserved for at least three months.

B. Neither the owner of a boat livery nor his agent or employee shall permit any watercraft to be operated from his premises unless it shall have been provided, either by the owner or renter, with the equipment required by this chapter.

C. The certificate of number for a watercraft less than twenty-six feet in length that is leased or rented to a person for noncommercial use of less than twenty-four hours may be retained on shore by the owner or his representative at the place from which the watercraft departs or returns to the possession of the owner or his representative. A watercraft which does not have the certificate of number on board shall be identified while in use as may be prescribed by the regulations of the commission.
A.R.S. § 5-112 — Arizona Code / Title 5 / Chapter 1 / Article 1 / Section 112
5-112 Wagering legalized; simulcasting of races; unauthorized wagering prohibited; classification; report; anticompetitive or deceptive practices prohibited
Status: in_force

5-112. Wagering legalized; simulcasting of races; unauthorized wagering prohibited; classification; report; anticompetitive or deceptive practices prohibited

A. Except as provided in subsection J of this section, section 5-101.01, subsection F and title 13, chapter 33, any person within the enclosure of a racing meeting held pursuant to 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, on request by a permittee, may grant permission for electronically televised simulcasts of horse, harness or dog races to be received by the permittee. In counties with a population of one million five hundred thousand persons or more, the simulcasts shall be received at the racetrack enclosure where a horse or harness racing meeting is being conducted, provided that the simulcast may only be received during, immediately before or immediately after a minimum of nine posted races for that racing day. In counties with a population of five hundred thousand persons or more but less than one million five hundred thousand persons, the simulcasts shall be received at the racetrack enclosure where a horse or harness 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 are limited to horse, harness or dog races.  The simulcasts are limited to the same type of racing as authorized in the permit for live racing conducted by the permittee. The department, on request by a permittee, may grant permission for the permittee to transmit the live race from the racetrack enclosure where a horse or harness 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 horseracing act of 1978 (P.L. 95-515; 92 Stat. 1811; 15 United States Code chapter 57).  All forms of pari-mutuel wagering are allowed on horse, harness or dog races, whether or not televised by simulcasting.  All monies wagered by patrons on these horse, harness or dog races shall be computed in the amount of money wagered each racing day for the purposes of section 5-111.

C. Notwithstanding subsection B of this section, in counties with a population of one million five hundred thousand persons or more, simulcasts may be received at the racetrack enclosure, and the permittee may offer pari-mutuel wagering on the simulcast racing 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 facilities and whether or not posted races have been conducted on the day the simulcast is received, if the permittee's racing permit requires the permittee to conduct a minimum of one hundred fifty-six days of live racing with an average of nine posted races on an average of five racing days each week at the permittee's racetrack enclosure during the period beginning on October 1 and ending on the first full week in May, unless otherwise agreed in writing by the permittee and the recognized horsemen's organization that represents the horsemen participating in the race meet at the racetrack enclosure, subject to approval by the department.

D. Notwithstanding subsection B of this section, in counties with a population of seven hundred thousand persons or more but less than one million five hundred thousand persons, simulcasts may be received at the racetrack enclosure, and the permittee may offer pari-mutuel wagering on the simulcast racing 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 facilities and whether or not posted races have been conducted on the day the simulcast is received. The permittee may conduct wagering on dark day simulcasts for twenty days, provided the permittee conducts a minimum of seven posted races on each of the racing days mandated in the permittee's commercial racing permit. In order to conduct wagering on dark day simulcasts for more than twenty days, the permittee is required to conduct a minimum of seven posted races on one hundred forty racing days at the permittee's racetrack enclosure, unless otherwise agreed in writing by the permittee and the recognized horsemen's organization that represents the horsemen participating in the race meet at the racetrack enclosure, subject to approval by the department.

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

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

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

H. Except as provided in subsection J of this section, section 5-101.01, subsection F and title 13, chapter 33, any person within a racetrack enclosure or an additional facility authorized for wagering pursuant to section 5-111, subsection A may wager on the results of a race televised to the facility pursuant to section 5-111, subsection A by contributing to a pari-mutuel pool operated as provided by this article.

I. 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 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.

J. 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.

K. Except as provided in title 13, chapter 33, any person who violates this article with respect to any wagering or betting, whether the race is conducted in or outside this state, is guilty of a class 6 felony.

L. Simulcasting may only be authorized for the same type of racing authorized by a permittee's live racing permit.

M. In addition to pari-mutuel wagering otherwise authorized by this chapter, a commercial live-racing permittee or a commercial dog racing permittee that conducted live dog racing in 2016 may conduct advance deposit wagering as approved by the commission. The commission also may allow advance deposit wagering by an advance deposit wagering provider if a racing authority in the state where the advance deposit wagering provider is located approves the advance deposit wagering provider and, for horse racing, if the advance deposit wagering provider annually secures the approval of the commercial live horse racing permittees in a county where the advance deposit wagering provider or commercial live-racing permittee accepts advance deposit wagers for horse racing and of the organization that represents the majority of owners and trainers at each of the commercial live horse racing enclosures in each county. An advance deposit wagering provider that the commission approves shall pay source market fees on wagers placed on horse racing from this state to commercial live horse racing permittees in this state. The advance deposit wagering provider shall divide the source market fees on horse racing wagers on the basis of the proportion of the permittees' total live and simulcast handle during the previous year and the advance deposit wagering provider shall pay source market fees on wagers on dog racing from the county in which the live or simulcast racing is conducted to the commercial live racing permittee in that county. The advance deposit wagering provider shall divide the source market fees on dog racing from wagering in any other county as provided in a written agreement that is submitted to the department between all commercial dog racing permittees.

N. The commission may issue a permit to authorize an advance deposit wagering provider to accept advance deposit wagering on racing from persons in this state. The procedures for the approval of the permit must be similar to the procedures for the approval of racing permits under this article, subject to the following requirements:

1. The commission shall issue an advance deposit wagering permit only if the state agency that regulates racing in the state where the advance deposit wagering provider is located approves the permittee or provider to conduct advance deposit wagering.

2. An advance deposit wagering provider may accept advance deposit pari-mutuel wagers from natural persons in this state on racing conducted by a commercial live-racing permittee in this state or on racing conducted outside this state if the commercial live-racing permittee in this state at a racetrack enclosure in a county where live horse or live dog racing has been conducted for a period of at least forty days per year for at least twelve consecutive years beginning after 1992 or at a new racetrack enclosure in the same county that replaced the previously existing racetrack enclosure on which advance deposit wagering is accepted or that conducts a racing program with the same type of racing on which the advance deposit wagering is accepted enters into an agreement with the advance deposit wagering provider providing for the payment of a source market fee that is agreed to by the commercial live-racing permittee on all advance deposit wagering.

3. An advance deposit wagering provider shall pay source market fees in an amount that is agreed to by the commercial live-racing permittee on all advance deposit wagering by persons in this state on the same type of racing the commercial live-racing permittee conducts. Source market fees from wagers by persons in this state through an advance deposit wagering provider shall be allocated as provided in paragraph 7 of this subsection to a commercial live horse racing permittee at a racetrack enclosure in a county where live horse racing has been conducted for a period of at least forty days per year for at least twelve consecutive years beginning after 1992 or at a new racetrack enclosure in the same county that replaced the previously existing racetrack enclosure during the period of time that the commercial live-racing permittee conducts a racing program. Source market fees for dog racing from wagering through the advance deposit wagering provider from persons wagering in a county shall be allocated as provided in paragraph 7 of this subsection to a commercial dog racing permittee at a racetrack enclosure in a county where live dog racing had been conducted in 2016 or had been conducted for a period of at least forty days per year for at least twelve consecutive years beginning after 1992 or at a new racetrack enclosure in the same county that replaced the previously existing racetrack enclosure. Source market fees from wagers by persons in this state in all other counties for pari-mutuel wagering on dog racing through an advance deposit wagering provider shall be allocated as provided in paragraph 7 of this subsection.

4. Advance deposit wagering agreements that are executed between permittees in this state must contain the same or substantially equivalent terms and conditions, including provisions for revenue sharing, as the terms and conditions contained in simulcasting agreements that are executed between those same permittees in order to accept advance deposit wagering on horse racing from a county with a commercial dog racing permittee.

5. The advance wagering provider shall transmit daily a percentage determined by the department of the gross revenues generated by advance deposit wagers to the department for deposit in the racing regulation fund established by section 5-113.01.

6. The advance deposit wagering provider shall file the consent provided for in this subsection with the commission, and the consent is valid for a period of at least one year.

7. The source market fees are allocated, after deductions, as provided for in section 5-111, subsection C for horse racing for any fees or payments to the state, county and city for taxes or other fees, in the same manner as the proceeds of simulcast pari-mutuel wagering as provided in section 5-111, subsection C for horse racing. From the source market fees from advance deposit wagering on horse racing allocated for purses as provided in section 5-111, subsection C, five percent is paid to the department for deposit in the Arizona breeders' award fund account for distributions for Arizona bred horses as provided in section 5-114.

O. The owner of the advance deposit wagering account may make an advance deposit pari-mutuel wager only by telephone.

P. Only the advance deposit wagering provider may make an advance deposit wager, pursuant to wagering instructions the owner of the monies issues by telephone. The advance deposit wagering provider shall ensure the identification of the owner of the account by using methods and technologies approved by the commission. Any advance deposit wagering provider that accepts wagering instructions on races that are conducted in this state, or accepts wagering instructions originating in this state, shall provide a daily report that contains a full accounting and verification of the source of the wagers made, including the postal zip code of the source of the wagers and all pari-mutuel data, in a form and manner that is approved by the commission. All reasonable costs associated with the creation, provision and transfer of the data is the responsibility of the advance deposit wagering provider.

Q. Any person other than a permittee or any advance deposit wagering provider who is approved by the commission under this article and who accepts a wager or who bets on the results of a race, whether the race is conducted in or outside 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 an additional wagering facility that is approved by the commission and that is located in this state is guilty of a class 6 felony.

R. Pursuant to section 13-108, a pari-mutuel wager or a bet placed or made by a person in this state is deemed for all purposes to occur in this state.

S. The department and the attorney general shall enforce subsections Q and R of this section and shall submit an annual report that summarizes these enforcement activities to the governor, the speaker of the house of representatives and the president of the senate. The department and the attorney general shall provide a copy of this report to the secretary of state.

T. Each commercial live-racing permittee in this state shall enter into an agreement that complies with this subsection. Simulcasts that originate from a racetrack enclosure that conducts live racing in this state shall be offered to each commercial live-racing permittee in this state and additional wagering facility in this state. Each simulcast agreement executed pursuant to this subsection is subject to approval by the commission.  The commission shall approve the simulcast agreement if the commission determines that the agreement is reasonable and complies with the requirements of this subsection.  A permittee may not engage in any anticompetitive or deceptive practice in offering to send the permittee's simulcast to another commercial live-racing permittee or additional wagering facility in this state. For the purposes of this subsection, an anticompetitive or deceptive practice includes any of the following:

1. Any agreement to charge excessive or unreasonable fees for the right to receive the simulcasts. In determining whether a fee is excessive or unreasonable, the commission shall consider prevailing rates paid for comparable simulcast signals in the past, prevailing rates paid outside this state and whether any commonality of ownership or revenue sharing exists, partially or wholly, between the permittee in this state and the entity that receives the simulcast fee.

2. Any agreement, combination, trust or joint enterprise with any other racetrack or entity in which multiple simulcast signals are bundled together for the purpose of securing an excessive or unreasonable fee for one or more simulcast signals in the group in exchange for the right to receive any of the signals in that group.

3. Any other activity with the purpose or effect of artificially inflating prices beyond reasonable market rates.

U. Any simulcast of live racing into this state that originates from outside this state shall comply with this subsection.  The simulcast must be offered to each commercial live-racing permittee in this state and additional wagering facility in this state. Each simulcast agreement executed pursuant to this subsection is subject to approval by the commission.  The commission shall approve the simulcast agreement if the commission determines that the agreement is reasonable and complies with the requirements of this subsection.  A provider of simulcasts originating from outside of this state may not engage in any anticompetitive or deceptive practice in offering to contract for the privilege to send any interstate simulcast to a commercial live-racing permittee or additional wagering facility in this state.  For the purposes of this subsection, an anticompetitive or deceptive practice includes any of the following:

1. Any agreement to charge excessive or unreasonable fees for the right to receive the interstate simulcasts.  In determining whether a fee is excessive or unreasonable, the commission shall consider prevailing rates paid for comparable simulcast signals in the past, prevailing rates paid outside this state and whether any commonality of ownership or revenue sharing exists, partially or wholly, between the permittee in this state and the entity receiving the simulcast fee.

2. Any agreement, combination, trust or joint enterprise with any other racetrack or entity in which multiple interstate signals are bundled together for the purpose of securing an excessive or unreasonable fee for one or more simulcast signals in the group in exchange for the right to receive any of the signals in that group.

3. Any other activity with the purpose or effect of artificially inflating prices beyond reasonable market rates.
A.R.S. § 5-1310 — Arizona Code / Title 5 / Chapter 11 / Article 1 / Section 1310
5-1310 License fees; bond
Status: in_force

5-1310. License fees; bond

A. The department shall establish and collect fees for applications, initial licenses and renewals of the following:

1. Event wagering operator licenses.

2. Limited event wagering operator licenses.

3. Management services provider licenses.

4. Supplier licenses.

B. If actual costs incurred by the department to investigate the background of an applicant exceed the fees pursuant to subsection A of this section, those costs may be assessed to the applicant during the investigation process. Payment in full to the department shall be required before the department issues a license. The department may require event wagering operators, limited event wagering operators and suppliers applying for licensure to post a bond sufficient to cover the actual costs that the department anticipates will be incurred in conducting a background investigation of the applicant.
A.R.S. § 5-1305 — Arizona Code / Title 5 / Chapter 11 / Article 1 / Section 1305
5-1305 License review; approval; fees; material change; exemption; display; transferability
Status: in_force

5-1305. License review; approval; fees; material change; exemption; display; transferability

A. On receipt of a completed application and the required fee, the department shall conduct the necessary background investigation to ensure the applicant is qualified for licensure.  On completion of the necessary background investigation, the department shall either issue a license or deny the application.  If the application is denied, the department shall forward a statement setting forth the grounds for denial to the applicant together with all other documents on which the department relied, to the extent allowed by law.

B. The department may conduct additional background investigations of any person required to be licensed at any time while the license remains valid.  The issuance of a license does not create or imply a right of employment or continued employment. The event wagering operator or limited event wagering operator may not employ and, if already employed, shall terminate an event wagering employee if it is determined that the person meets any of the following criteria:

1. Has been convicted of any gaming offense.

2. Has been convicted of a felony in the seven years before submitting an application unless that felony has been set aside.

3. Has ever been convicted of a felony related to extortion, burglary, larceny, bribery, embezzlement, robbery, racketeering, money laundering, forgery, fraud, murder, voluntary manslaughter, a sexual offense that requires the individual to register pursuant to section 13-3821 or kidnapping.

4. Knowingly and wilfully provides materially important false statements or information or omits materially important information on the person's employment application or background questionnaire.

5. Is a person whose prior activities, criminal record, if any, or reputation, habits and associations pose a threat to the public interest or to the effective regulation and control of gaming or create or enhance the dangers of unsuitable, unfair or illegal practices, methods and activities in the conduct of gaming or the carrying on of the business and financial arrangements incidental thereto.

C. Not later than sixty days after the department receives a complete application, the department shall issue a license to the applicant unless the background investigation the department conducts discloses that the applicant has a criminal history or unless other grounds sufficient to disqualify the applicant are apparent on the face of the application. If more than ten applications are received for a particular license type, the department shall adopt a process for ensuring an equal opportunity for all qualified applicants to obtain a license. The department shall review and approve or deny an application for a license as provided in title 41, chapter 6, article 10.

D. For each application for licensure or renewal of a license that is approved under this section, the amount of the application fee must be credited toward the licensee's license fee and the licensee shall remit the balance of the initial license fee to the department on approval of a license. The fees collected from licensees under this section shall be deposited in the event wagering fund established by section 5-1318 and used by the department to pay the actual operating and administrative expenses incurred for event wagering.

E. Each person licensed under this chapter shall give the department written notice within thirty days after a material change is made to information provided in the licensee's application for a license or renewal.

F. Indian tribes within this state operating event wagering exclusively on Indian lands are exempt from the licensure requirements of this section. Event wagering on Indian lands is governed by the tribal-state gaming compact, its appendices, any amendments and the Indian gaming regulatory act (P.L. 100-497; 102 Stat. 2467).

G. Each licensee shall display its license conspicuously in the licensee's place of business or have the license available for inspection by an agent of the department or a law enforcement agency.  Each licensee that operates an event wagering platform shall conspicuously display a notice of the license on its platform's landing page.

H. The department shall keep all information, records, interviews, reports, statements, memoranda or other data supplied to or used by the department in the course of its review or investigation of an application for an event wagering operator license or renewal of a license confidential.  The materials described in this subsection are exempt from disclosure pursuant to title 39, chapter 1, article 2.

I. A license issued under this chapter may not be transferred to another person or entity without prior approval of the department. The department shall work with applicants and licensees to ensure there is no gap in the validity of the license.
A.R.S. § 5-869 — Arizona Code / Title 5 / Chapter 8 / Article 3 / Section 869
5-869 Payment of bonds
Status: in_force

5-869. Payment of bonds

A. The bonds shall be paid solely from monies in the debt service account.

B. Neither the members of the board nor any person executing the bonds is personally liable for the payment of the bonds.

C. The treasurer or fiscal agent of the authority shall cancel all bonds when paid.
A.R.S. § 5-554 — Arizona Code / Title 5 / Chapter 5.1 / Article 2 / Section 554
5-554 Commission; director; powers and duties; definitions
Status: in_force

5-554. Commission; director; powers and duties; definitions

A. The commission shall meet with the director not less than once each quarter to make recommendations and set policy, receive reports from the director and transact other business properly brought before the commission.

B. The commission shall oversee a state lottery to produce the maximum amount of net revenue consonant with the dignity of the state.  To achieve these ends, the commission shall authorize the director to adopt rules in accordance with title 41, chapter 6. Rules adopted by the director may include the following:

1. Subject to the approval of the commission, the types of lottery games and the types of game play-styles to be conducted.

2. The method of selecting the winning tickets or shares for noncomputerized online games, except that a method may not be used that, in whole or in part, depends on the results of a dog race, a horse race, any gaming activity conducted pursuant to the 2021 tribal-state gaming compact amendments or any sports event or other event.

3. The manner of payment of prizes to the holders of winning tickets or shares, including providing for payment by the purchase of annuities in the case of prizes payable in installments, except that the commission staff shall examine claims and may not pay any prize based on altered, stolen or counterfeit tickets or based on any tickets that fail to meet established validation requirements, including rules stated on the ticket or in the published game rules, and confidential validation tests applied consistently by the commission staff.  No particular prize in a lottery game may be paid more than once, and in the event of a binding determination that more than one person is entitled to a particular prize, the sole remedy of the claimants is the award to each of them of an equal portion of the single prize.

4. The method to be used in selling tickets or shares, except that no elected official's name may be printed on the tickets or shares. The overall estimated odds of winning some prize or some cash prize, as appropriate, in a given game shall be printed on each ticket or share.

5. The licensing of agents to sell tickets or shares, except that a person who is under eighteen years of age shall not be licensed as an agent.

6. The manner and amount of compensation to be paid licensed sales agents necessary to provide for the adequate availability of tickets or shares to prospective buyers and for the convenience of the public, including provision for variable compensation based on sales volume.

7. Matters necessary or desirable for the efficient and economical operation and administration of the lottery and for the convenience of the purchasers of tickets or shares and the holders of winning tickets or shares.

8. The licensing of authorized keno locations, including the persons that control the business or other activity conducted at an authorized keno location.

C. The commission shall authorize the director to issue orders and shall approve orders issued by the director for the necessary operation of the lottery.  Orders issued under this subsection may include the following:

1. The prices of tickets or shares in lottery games.

2. The themes, game play-styles, and names of lottery games and definitions of symbols and other characters used in lottery games, except that each ticket or share in a lottery game shall bear a unique distinguishable serial number.

3. The sale of tickets or shares at a discount for promotional purposes.

4. The prize structure of lottery games, including the number and size of prizes available. Available prizes may include free tickets in lottery games and merchandise prizes.

5. The frequency of drawings, if any, or other selections of winning tickets or shares, except that:

(a) All drawings shall be open to the public.

(b) The actual selection of winning tickets or shares may not be performed by an employee or member of the commission.

(c) Noncomputerized online game drawings shall be witnessed by an independent observer.

6. Requirements for eligibility for participation in grand drawings or other runoff drawings, including requirements for the submission of evidence of eligibility within a shorter period than that provided for claims by section 5-568.

7. Incentive and bonus programs designed to increase sales of lottery tickets or shares and to produce the maximum amount of net revenue for this state.

8. The method used for the validation of a ticket, which may be by physical or electronic presentation of a ticket.

D. Notwithstanding title 41, chapter 6 and subsection B of this section, the director, subject to the approval of the commission, may establish a policy, procedure or practice that relates to an existing online game or a new online game that is the same type and has the same type of game play-style as an online game currently being conducted by the lottery or may modify an existing rule for an existing online game or a new online game that is the same type and has the same type of game play-style as an online game currently being conducted by the lottery, including establishing or modifying the matrix for an online game by giving notice of the establishment or modification at least thirty days before the effective date of the establishment or modification.

E. The commission shall maintain and make the following information available for public inspection at its offices during regular business hours:

1. A detailed listing of the estimated number of prizes of each particular denomination expected to be awarded in any instant game currently on sale.

2. After the end of the claim period prescribed by section 5-568, a listing of the total number of tickets or shares sold and the number of prizes of each particular denomination awarded in each lottery game.

3. Definitions of all play symbols and other characters used in each lottery game and instructions on how to play and how to win each lottery game.

F. Any information that is maintained by the commission and that would assist a person in locating or identifying a winning ticket or share or that would otherwise compromise the integrity of any lottery game is deemed confidential and is not subject to public inspection.

G. The commission, in addition to other games authorized by this article, may establish multijurisdictional lottery games to be conducted concurrently with other lottery games authorized under subsection B of this section.  The monies for prizes, for operating expenses and for payment to the state general fund shall be accounted for separately as nearly as practicable in the lottery commission's general accounting system. The monies shall be derived from the revenues of multijurisdictional lottery games.

H. The commission, in addition to other games authorized by this article, shall establish special instant ticket games with play areas protected by paper tabs designated for use by charitable organizations.  The monies for prizes and for operating expenses shall be accounted for separately as nearly as practicable in the lottery commission's general accounting system.  Monies saved from the revenues of the special games, by reason of operating efficiencies, shall become other revenue of the lottery commission and revert to the state general fund, except that the commission shall transfer the proceeds from any games that are sold from a vending machine in an age-restricted area to the state treasurer for deposit in the following amounts:

1. Nine hundred thousand dollars each fiscal year in the internet crimes against children enforcement fund established by section 41-199.

2. One hundred thousand dollars each fiscal year in the victims' rights enforcement fund established by section 41-1727.

3. Any monies in excess of the amounts listed in paragraphs 1 and 2 of this subsection, in the state lottery fund established by section 5-571.

I. The commission or director shall not establish or operate any online or electronic keno game or any game played on the internet, except for the electronic keno game and the mobile draw game authorized in subsection J of this section.

J. From and after the date on which the conditions prescribed in sections 5-1213 and 5-1321 are met, the commission or director, in addition to any other game authorized in this section, may establish and operate a single electronic keno game and a single mobile draw game on a centralized computer system controlled by the lottery that allows a player to place wagers, view the outcome of a game and receive winnings over the internet, including on personal electronic devices.

K. An electronic keno game conducted pursuant to subsection J of this section may be operated only within an authorized keno location. If the electronic keno game is authorized to be played on personal electronic devices, players shall be geographically restricted by means of geofencing to authorized keno locations. Electronic keno game draws may not be conducted more frequently than once every four minutes. The number of authorized keno locations may not exceed the number published annually by the director, which is equal to the total number of establishments licensed by the department of gaming to allow wagering on live horse races and simulcast wagering pursuant to section 5-107, plus the total number of class 14 liquor licenses that the department of liquor licenses and control issued to fraternal organizations or veterans' organizations as of January 1, 2021. The total number of authorized keno locations shall be automatically increased by two percent every two years.

L. A mobile draw game conducted pursuant to subsection J of this section may offer players multiple game play styles and wagering options.  Players of the mobile draw game may not play or win a prize more frequently than once per hour.

M. An electronic keno game or mobile draw game conducted pursuant to this section may not present the player with a user interface depicting spinning reels or that replicates a slot machine, blackjack, poker, roulette, craps or any other casino-style game other than traditional keno or a traditional lottery draw game.

N. Except as provided in subsections J, K, L and M of this section, the commission or director shall not establish or operate any lottery game or any type of game play-style, either individually or in combination, that uses gaming devices or video lottery terminals as those terms are used in section 5-601.02, including monitor games that produce or display outcomes or results more than once per hour.

O. The director shall print, in a prominent location on each lottery ticket or share, a statement that help is available if a person has a problem with gambling and a toll-free telephone number where problem gambling assistance is available.  The director shall require all licensed agents to post a sign with the statement that help is available if a person has a problem with gambling and the toll-free telephone number at the point of sale as prescribed and supplied by the director.

P. For the purposes of this section:

1. "Additional wagering facility" has the same meaning prescribed in section 5-101.

2. "Authorized keno location" means a physical facility located at least five miles from an Indian gaming facility that is licensed by the director in the same manner as licenses issued pursuant to section 5-562 but only to a fraternal organization or veterans' organization or to a racetrack enclosure or additional wagering facility where pari-mutuel wagering on horse races is conducted.

3. "Charitable organization" means any nonprofit organization, including not more than one auxiliary of that organization, that has operated for charitable purposes in this state for at least two years before submitting a license application under this article.

4. "Electronic keno game" means a house banking game in which:

(a) A player selects from one to twenty numbers on a card that contains the numbers one through eighty.

(b) The lottery randomly draws twenty numbers.

(c) Players win if the numbers they select correspond to the numbers drawn by the lottery.

(d) The lottery pays all winners, if any, and collects from all losers.

5. "Fraternal organization" has the same meaning prescribed in section 5-401.

6. "Game play-style" means the process or procedure that a player must follow to determine if a lottery ticket or share is a winning ticket or share.

7. "Matrix" means the odds of winning a prize and the prize payout amounts in a given game.

8. "Mobile draw game" conducted pursuant to subsection J of this section, means a lottery draw game offered to players over the internet, including on mobile devices, in which:

(a) A combination of numbers, symbols or characters is selected.

(b) A computer system authorized by the lottery randomly selects a winning combination of numbers, symbols or characters.

(c) A computer system validates any prize awarded to the players.

9. "Other event" has the same meaning prescribed in section 5-1301.

10. "Sports event" has the same meaning prescribed in section 5-1301.

11. "Veterans' organization" has the same meaning prescribed in section 5-401.
A.R.S. § 5-324 — Arizona Code / Title 5 / Chapter 3 / Article 3 / Section 324
5-324 Public records; identification of requester; supplying information by mail; records custodians; certification of records
Status: in_force

5-324. Public records; identification of requester; supplying information by mail; records custodians; certification of records

A. All records of the department made or kept pursuant to this article are public records.

B. The department shall furnish information or copies from the records kept pursuant to this section subject to sections 39-121.01 and 39-121.03.

C. Persons requesting a copy of a public record pursuant to this section shall identify themselves and state the reason for making the request. The department shall verify the name and address of the person making the request by requiring the person to produce necessary information to ensure that the information given is true and correct.

D. The department shall not divulge any information from a watercraft registration record unless the person requesting the information provides the following:

1. The name of the owner.

2. The hull identification number of the watercraft.

3. The department-issued number assigned to the watercraft.

E. The procedures required by subsections C and D of this section do not apply to:

1. This state or any of its departments, agencies or political subdivisions.

2. A court.

3. A law enforcement officer.

4. A licensed private investigator.

5. Financial institutions and enterprises under the jurisdiction of the department of insurance and financial institutions or a federal monetary authority.

6. The federal government or any of its agencies.

7. An attorney admitted to practice in this state who alleges the information is relevant to any pending or potential court proceeding.

8. An operator of a self-service storage facility located in this state who alleges both of the following:

(a) That the watercraft on which the operator is requesting the record is in the operator's possession.

(b) That the record is requested to allow the operator to notify the registered owner and any lienholders of record of the operator's intent to foreclose its lien and to sell the watercraft.

9. A towing company located in this state that alleges both of the following:

(a) That the watercraft on which the towing company is requesting the record is in the towing company's possession.

(b) That the record is requested to allow the towing company to notify the registered owner and any lienholders of record, if known, of the towing company's intent to sell the watercraft.

10. An insurance company.

F. The department may supply the requested information by mail or telecommunications.

G. The director may designate as custodian of the department's public records those department employees the director deems necessary. If a public record of the department has been certified by a records custodian and authenticated as required under proof of records (records of public officials), rules of civil procedure and the rules of evidence for courts in this state, it is admissible in evidence without further foundation.

H. Notwithstanding subsection D of this section, information may be supplied for commercial purposes, as defined in section 39-121.03, if the information is transmitted in a machine-readable form such as computer magnetic tape to the person making the request.

I. The department shall maintain for a period of at least one year a file of requests for information that shall be maintained by the name of the person whose record was requested, except those requests made by government agencies.
A.R.S. § 5-111.04 — Arizona Code / Title 5 / Chapter 1 / Article 1 / Section 111.04
5-111.04 Repayment of nonapproved expenditures of capital monies; judicial review
Status: in_force

5-111.04. Repayment of nonapproved expenditures of capital monies; judicial review

A. If it is determined by the commission, through the findings of the commission or through information provided to the commission by the department or the auditor general, that a permittee has retained monies for approved capital improvements pursuant to section 5-111.02 in excess of the amount approved for such capital improvements, the permittee shall repay the excess amount to this state within one year after notification of the determination by the commission. The commission shall determine the repayment method, and the repayment may be made directly by the permittee or through reductions in future entitlements for capital improvements which have been approved by the commission. This section shall not prohibit the use of capital expenditure monies received pursuant to section 5-111.02 for repayment of obligations of the permittee which directly relate to approved capital improvements.

B. Except as provided in section 41-1092.08, subsection H, final decisions of the commission are subject to judicial review pursuant to title 12, chapter 7, article 6.