5-104

5-104. Racing commission; director; department;
powers and duties

A. The commission shall:

1. Issue racing dates.

2. Prepare and adopt such complete rules to govern the racing meetings as may be
required to protect and promote the safety and welfare of the animals participating in
such racing meetings, to protect and promote public health, safety and the proper conduct
of racing and pari-mutuel wagering and any other matter pertaining to the proper conduct
of racing within this state.

3. Conduct hearings on applications for permits and approve permits and shall
conduct such rehearings on licensing and regulatory decisions made by the director as
required pursuant to rules adopted by the commission.

4. Conduct all reviews of applications to construct capital improvements at
racetracks as provided in this chapter.

5. Adopt rules governing the proper and humane methods for the disposition and
transportation of dogs by breeders, kennels or others.

B. The director shall license personnel and shall regulate and supervise all racing
meetings held and pari-mutuel wagering conducted in this state and cause the various
places where racing meetings are held and wagering is conducted to be visited and
inspected on a regular basis. The director may delegate to stewards such of the
director's powers and duties as are necessary to fully carry out and effectuate the
purposes of this chapter. The director shall exercise immediate supervision over the
department of racing. The director is subject to ongoing supervision by the commission,
and the commission may approve or reject decisions of the director in accordance with
rules established by the commission.

C. The commission or the department is authorized to allow stewards, with the
written approval of the director, to require a jockey, apprentice jockey, sulky driver,
groom, horseshoer, outrider, trainer, assistant trainer, exercise rider, pony rider,
starter, assistant starter, jockey's agent, veterinarian, assistant veterinarian,
cool-out, lead-out, paddock employee, security or maintenance worker, official or
individual licensed in an occupational category whose role requires direct hands-on
contact with horses or greyhounds, while on the grounds of a permittee, to submit to a
test if the stewards have reason to believe the licensee is under the influence of or
unlawfully in possession of any prohibited substance regulated by title 13, chapter 34.

D. The department shall employ the services of the office of administrative
hearings to conduct hearings on matters requested to be heard by the director or the
commission for the department except for those rehearings that are required by the terms
of this chapter to be conducted by the commission. Any person adversely affected by a
decision of a steward or by any other decision of the department may request a hearing on
such decision. The decision of the administrative law judge becomes the decision of the
director unless rejected or modified by the director within thirty days. The commission
may hear any appeal of a decision of the director in accordance with title 41, chapter 6,
article 10.

E. The department may visit and investigate the offices, tracks or places of
business of any permittee and place in those offices, tracks or places of business expert
accountants and such other persons as it deems necessary for the purpose of ascertaining
that the permittee or any licensee is in compliance with the rules adopted pursuant to
this article.

F. The department shall collect the fees payable for a license issued by it, as
follows:

1. Occupational licenses, up to fifty dollars.

2. Owner, trainer, veterinarian, authorized agent, officials, assistant trainer,
stable name renewal or kennel name renewal, up to seventy-five dollars.

3. Owner-trainer, driver, jockey, jockey agent or apprentice jockey, up to one
hundred fifty dollars.

4. New stable name or new kennel name, up to five hundred dollars.

5. Duplicate license, up to five dollars.

6. Temporary license, up to fifty dollars.

7. If not licensed pursuant to paragraph 9 of this subsection with a combination
license, greyhound racing kennels, up to one hundred dollars.

8. If not licensed pursuant to paragraph 9 of this subsection with a combination
license, farms or other operations where greyhounds are raised for the purpose of dog
racing, up to one hundred dollars.

9. Any combination of greyhound racing kennels, farms or other operations where
greyhounds are raised for the purpose of dog racing, up to one hundred dollars.

G. The commission shall establish financial assistance procedures for promoting
adoption of racing greyhounds as domestic pets and for promoting adoption of retired
racehorses. The provision of financial assistance to nonprofit enterprises for the
purpose of promoting adoption of racing greyhounds as domestic pets and for the purpose
of promoting adoption of retired racehorses is contingent on a finding by the commission
that the program presented by the enterprise is in the best interest of the racing
industry and this state. Upon a finding by the commission, the commission is authorized
to make grants to nonprofit enterprises whose programs promote adoption of racing
greyhounds or adoption of retired racehorses. The commission shall develop an
application process. The commission shall require an enterprise to report to the
commission on the use of grants under this subsection. Financial assistance for
nonprofit enterprises for the purpose of promoting adoption of racing greyhounds as
domestic pets under this subsection shall not exceed the amount collected for license
fees under subsection F, paragraphs 7, 8 and 9 of this section. Financial assistance for
nonprofit enterprises that promote adoption of retired racehorses under this subsection
shall not exceed the amount of retired racehorse adoption surcharges collected pursuant
to this subsection. The commission shall collect a retired racehorse adoption surcharge
in addition to each civil penalty assessed in connection with horse or harness racing
pursuant to this article. The amount of the retired racehorse adoption surcharge shall
be five per cent of the amount collected for each applicable civil penalty.

H. A license is valid for the period established by the commission, but not to
exceed three years, except for a temporary license issued pursuant to section 5-107.01,
subsection F. The licensing period for horse racing shall begin July 1. The licensing
period for greyhound racing shall begin February 1.

I. Upon application in writing by an objector to any decision of track stewards,
made within three days after the official notification to the objector of the decision
complained of, the department or administrative law judge shall review the objection. In
the case of a suspension of a license by the track stewards, such suspension shall
commence at once and run for a period of not more than sixty days. Before the end of
this suspension period, filing an application for review is not cause for reinstatement.
If at the end of this suspension period the department or administrative law judge has
not held a hearing to review the decision of the stewards, the suspended license shall be
reinstated until such time as the department or administrative law judge holds a hearing
to review the objection. Except as provided in section 41-1092.08, subsection H, a final
decision of the commission is subject to judicial review pursuant to title 12, chapter 7,
article 6.

J. The commission or the director may issue subpoenas for the attendance of
witnesses and the production of books, records and documents relevant and material to a
particular matter before the commission or department. Such subpoenas shall be served and
enforced in accordance with title 41, chapter 6, article 10.

K. Any member of the commission, the administrative law judge or the director or
the director's designee may administer oaths, and such oaths shall be administered to any
person who appears before the commission to give testimony or information pertaining to
matters before the commission.

L. The commission shall adopt rules which require permittees to retain for three
months all official race photographs and videotapes. The department shall retain all
such photographs and videotapes which are used as evidence in an administrative
proceeding until the conclusion of the proceeding and any subsequent judicial
proceeding. All photographs and videotapes must be available to the public on request,
including photographs and videotapes of races concerning which an objection is made,
regardless of whether the objection is allowed or disallowed.

M. The director may establish a management review section for the development,
implementation and operation of a system of management reports and controls in major
areas of department operations, including licensing, work load management and staffing,
and enforcement of the provisions of this article and the rules of the commission.

N. In cooperation with the department of public safety, the director shall
establish a cooperative fingerprint registration system. Each applicant for a license or
permit under this article or any other person who has a financial interest in the
business or corporation making the application shall submit to fingerprint registration
as part of the background investigation conducted pursuant to section 5-108. The
cooperative fingerprint registration system shall be maintained in an updated form using
information from available law enforcement sources and shall provide current information
to the director upon request as to the fitness of each racing permittee and each racing
licensee to engage in the racing industry in this state.

O. The director shall develop and require department staff to use uniform
procedural manuals in the issuance of any license or permit under this article and in the
enforcement of this article and the rules adopted under this article.

P. The director shall submit an annual report containing such operational and
economic performance information as is necessary to evaluate the department's budget
request for the forthcoming fiscal year to the governor, the speaker of the house of
representatives, the president of the senate and the Arizona state library, archives and
public records no later than September 30 each year. The annual report shall be for the
preceding fiscal year and contain such performance information as:

1. The total state revenues for the previous fiscal year from the overall
pari-mutuel handle with an itemization for each dog racing meeting, each horse racing
meeting, each harness racing meeting and each additional wagering facility.

2. The total state revenues for the previous fiscal year from the regulation of
racing, including licensing fees assessed pursuant to subsection F of this section and
monetary penalties assessed pursuant to section 5-108.02.

3. The amount and use of capital improvement funds pursuant to sections 5-111.02
and 5-111.03 which would otherwise be state revenues.

4. The number of licenses and permits issued, renewed, pending and revoked during
the previous fiscal year.

5. The investigations conducted during the previous fiscal year and any action
taken as a result of the investigations.

6. The department budget for the immediately preceding three fiscal years,
including the number of full-time, part-time, temporary and contract employees, a
statement of budget needs for the forthcoming fiscal year and a statement of the minimum
staff necessary to accomplish these objectives.

7. Revenues generated for this state for the preceding fiscal year by persons
holding horse, harness and dog racing permits.

8. Recommendations for increasing state revenues from the regulation of the racing
industry while maintaining the financial health of the industry and protecting the public
interest.

Q. The commission may certify animals as Arizona bred or as Arizona stallions. The
commission may delegate this authority to a breeders' association it contracts with for
these purposes. The commission may authorize the association, racing organization or
department to charge and collect a reasonable fee to cover the cost of breeding or
ownership certification or transfer of ownership for racing purposes.

R. The department has responsibility for the collection and accounting of revenues
for the state boxing and mixed martial arts commission including, but not limited to,
licensing fees required by section 5-230, the levy of the tax on gross receipts imposed
by section 5-104.02 and cash deposited pursuant to section 5-229. All revenues collected
pursuant to this subsection, from whatever source, shall be reported and deposited
pursuant to section 5-104.02, subsection C. The director shall adopt rules as necessary
to accomplish the purposes of this subsection and chapter 2, article 2 of this title.

S. The commission may obtain the services of the office of administrative hearings
on any matter which the commission is empowered to hear.

T. The department may adopt rules pursuant to title 41, chapter 6 to carry out the
purposes of this article, ensure the safety and integrity of racing in this state and
protect the public interest.