ARIZONA STATE SENATE
Phoenix, Arizona
county fairs; breeders’
awards; revenues
Purpose
Increases the funding distribution to seven specified racing related funds from pari-mutuel racing revenues and monies received from unclaimed and abandoned property.
Background
Current state law requires
pari-mutuel revenues paid to the state by commercial racing operations to be
distributed to eight funds that support county fairs, horse racing, greyhound
adoptions and agricultural consulting and training programs. Seven of the eight
funds have a statutory cap on the amount of money that each may receive in
either a specific dollar amount or a percentage of the funds available,
whichever is less.
Briefly, regarding the funds receiving monies:
¨ The Arizona county fairs racing betterment fund provides payments for
purses to county fair horsemen and county fair racing operators.
¨ The county fairs livestock and agriculture promotion fund, which is
administered by a committee appointed by the Governor, benefits county fairs
and the Arizona National Livestock Show.
¨ The Arizona breeders= award
fund provides payments to breeders of successful Arizona-bred horses and
greyhounds.
¨ The Arizona stallion award fund pays awards to owners of Arizona
stallions that sire successful Arizona bred horses.
¨ The county fair racing fund pays for Department of Racing staff to
oversee county fair racing.
¨ The agricultural consulting and training fund, which funds programs
within the Department, provides consultative services to the agricultural
community.
¨ The Arizona exposition and state fair fund maintains monies for capital
outlay purposes.
Legislation enacted in 1996
requires 20 percent of the monies received from unclaimed and abandoned
property be allocated to these funds that receive state pari-mutuel revenues
(Laws 1996, Chapter 353). The total
amount is distributed on a percentage basis to meet minimum funding levels for
the seven funds. In 1999, legislation
was passed and sent to the Governor that would have allowed these funds to
receive either the specified minimum dollar amount or a percentage of the total
funds available, whichever is more.
This would have allowed these funds to receive an additional $2.1
million in revenues from the unclaimed and abandoned property revenues that
otherwise would have reverted to the state general fund. Governor Jane Hull vetoed this legislation
because the fiscal impact of the bill was being deferred past the biennial
budget cycle.
S.B. 1325 removes the cap on
the distribution of pari-mutuel racing revenues and the unclaimed and abandoned
property proceeds to seven of the eight funds and allows these funds to receive
either the specified minimum dollar amount or a percentage of the total funds
available, whichever is more.
However, in FY 2001-2002 only $3 million will be eligible for
distribution to the race related funds from the unclaimed property fund. After FY 2001-2002, the entire 20 percent of the unclaimed and
abandoned property proceeds will be distributed to the eight funds and none
will revert to the state general fund, as is the practice under current
law. According to the Department of
Racing, in FY 2000 the remaining balance of unclaimed and abandoned property
revenues that reverted to the general fund after the distribution to the racing
funds was approximately $3.1 million.
Provisions
1. Distributes pari-mutuel racing revenues and monies received from unclaimed and abandoned property in the following manner:
|
Fund |
Current Distribution |
Ex. Distribution for FY 2000 Based on SB 1325 |
Changes in Revenue Distribution |
|
AZ County Fairs Racing Betterment Fund |
$800,000 or 22%, whichever is less |
$800,000 or 22%, whichever is more (22%= $1,474,798.80) |
$674,798.80 Plus $227,495.09*** Total= $902,293.89 |
|
County Fairs Livestock & Agriculture Promotion Fund |
$1,200,000 or 33%, whichever is less |
$1,200,000 or 33%, whichever is more (33%= $2,212,198.20) |
$1,012,198.20 |
|
AZ Breeders= Award Fund |
$800,000 or 22%, whichever is less |
$800,000 or 22%, whichever is more (22%= $1,474,798.80) |
$674,798.80 Plus $75,831.70*** Total= $750,630.50 |
|
AZ Stallion Award Fund |
$40,000 or 1%, whichever is less |
$40,000 or 1%, whichever is more (1%= $67,036.31) |
$27,036.31 |
|
County Fair Racing Fund *** |
$300,000 or 9%, whichever is less |
$300,000 or 9%, whichever is more (9%= $603,326.79)*** |
-0-*** |
|
Agricultural Consulting & Training Fund |
One percent |
One percent (1%= $67,036.31) |
-0- |
|
Department of Racing for administration of specified funds |
$45,000 or 1%, whichever is less |
$45,000 or 1%, whichever is more, (1%= $67,036.31) |
$22,036.31 |
|
AZ Exposition and State Fair Fund, for capital outlay |
$400,000 or 11%, whichever is less |
$400,000 or 11%, whichever is more (11%= $737,399.41) |
$337,399.41 |
*** Monies credited to the county fair racing fund in excess of $300,000 in any fiscal year are to be distributed as follows:
§ 75% to the AZ County Fairs Racing Betterment Fund. ($227,495.09)
§ 25% to the AZ Breeders’ Award Fund. ($75,831.70)
2. Stipulates that monies credited in excess of $300,000 in any fiscal year to the county fairs racing fund be distributed as follows: 75 percent to the Arizona county fairs racing betterment fund and 25 percent to the Arizona breeders’ award fund.
3. Establishes a $3 million cap in FY 2001-2002 on monies from the unclaimed property fund to be eligible for distribution to the seven racing related funds. Provides that from FY 2002-2003 and on, all eligible monies from the unclaimed property fund (20 percent) are to be dispersed to the race related funds and no monies will revert back to the general fund.
4. Provides for a general effective date.
Amendments Adopted by the Appropriations Committee
1. Establishes a $3 million cap in FY 2001-2002 on monies from the unclaimed property fund to be eligible for distribution to the seven racing related funds. Provides that from FY 2002-2003 and on, all eligible monies from the unclaimed property fund (20 percent) are to be dispersed to the race related funds and no monies will revert back to the general fund.
Senate Action
NRAE 2/15/01 DP 7-0-1-0
APPROP 3/6/01 DPA 10-0-2-0
Prepared by Senate Staff
March 9, 2001