AN INITIATIVE MEASURE

AN INITIATIVE MEASURE AMENDING TITLE 5, CHAPTER 6, ARIZONA REVISED STATUTES BY ADDING NEW SECTIONS 5-601.02, 5-601.03, 5-601.04, 5-601.05 AND 5-601.06; AMENDING TITLE 13, CHAPTER 33, ARIZONA REVISED STATUTES BY ADDING SECTION 13-3302.01; RELATING TO INDIAN GAMING

TEXT OF PROPOSED AMENDMENT

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

SECTION 1. Title.

THIS MEASURE SHALL BE KNOWN AND MAY BE CITED AS THE "TRIBAL-STATE GAMING COMPACT, COLLEGE SCHOLARSHIP AND ELDERLY CARE ACT OF 2002."

SECTION 2. Findings and Declarations.

THE PEOPLE OF THE STATE OF ARIZONA HEREBY FIND AND DECLARE ALL OF THE FOLLOWING:

(a) SINCE 1993, THE STATE OF ARIZONA HAS ENTERED INTO GAMING COMPACTS WITH 17 OF ARIZONA'S INDIAN TRIBES TO ALLOW GAMING ON TRIBAL LANDS.

(b) GAMING ALLOWED UNDER THE COMPACTS HAS PRODUCED SIGNIFICANT ECONOMIC BENEFITS FOR ALL ARIZONANS AND HAS ENHANCED SELF-SUFFICIENCY AMONG ARIZONA'S INDIAN TRIBES.

(c)DESPITE THESE IMPORTANT GAINS, MANY OF ARIZONA'S INDIAN TRIBES FACE CONTINUING NEEDS AS UNEMPLOYMENT ON RESERVATIONS REMAINS HIGH AND THOUSANDS OF TRIBAL MEMBERS REMAIN IMPOVERISHED.

(d) IN ORDER TO ALLEVIATE POVERTY AND FURTHER PROMOTE SELF-SUFFICIENCY AMONG ARIZONA'S INDIAN TRIBES, NEW TRIBAL-STATE GAMING COMPACTS ARE NEEDED THAT ESTABLISH POLICIES AND STANDARDS FOR THE CONDUCT OF GAMING ON INDIAN RESERVATIONS.

(e) AS PART OF NEW TRIBAL-STATE GAMING COMPACTS, ARIZONA’S INDIAN TRIBES ARE WILLING TO CONTRIBUTE TO THE WELFARE OF BOTH YOUNG AND ELDERLY ARIZONANS BY DONATING A PORTION OF GAMING REVENUES TO THE ARIZONA COLLEGE EDUCATION SCHOLARSHIP AND ELDERLY CARE FUND. THIS FUND WILL PAY FOR COLLEGE SCHOLARSHIPS FOR ARIZONA STUDENTS TO ATTEND ARIZONA UNIVERSITIES, COMMUNITY AND TRIBAL COLLEGES, FUND PROGRAMS FOR SENIOR CITIZENS THROUGHOUT ARIZONA, AND FUND GENERAL EDUCATIONAL PROGRAMS ON INDIAN RESERVATIONS.

(f) THE STATE SHOULD MONITOR GAMING ON INDIAN RESERVATIONS AND THE COST FOR SUCH MONITORING SHOULD BE PAID FROM GAMING REVENUES.

SECTION 3. Purpose and Intent.

THE PEOPLE OF THE STATE OF ARIZONA HEREBY DECLARE THEIR PURPOSE AND INTENT IN ENACTING THE MEASURE TO BE AS FOLLOWS:

(a) TO CONTINUE TO PERMIT GAMING ONLY ON INDIAN RESERVATIONS.

(b) TO PRODUCE SIGNIFICANT ECONOMIC BENEFITS FOR ALL ARIZONANS AND ENHANCE SELF-SUFFICIENCY AMONG ARIZONA'S INDIAN TRIBES.

(c) TO MEET THE CONTINUING NEEDS OF ARIZONA’S INDIAN TRIBES AS UNEMPLOYMENT ON THE RESERVATIONS REMAINS HIGH AND THOUSANDS OF TRIBAL MEMBERS REMAIN IMPOVERISHED.

(d) TO REQUIRE THAT THE STATE OF ARIZONA ENTER INTO COMPACTS FOR THE CONDUCT OF GAMING ON INDIAN RESERVATIONS IN ORDER TO ALLEVIATE POVERTY AND FURTHER PROMOTE SELF-SUFFICIENCY.

(e) TO ALLOW ARIZONA’S INDIAN TRIBES THE ABILITY TO CONTRIBUTE A PORTION OF GAMING REVENUES TO FUND COLLEGE SCHOLARSHIPS FOR ARIZONA RESIDENTS AND PROVIDE ADDITIONAL RESOURCES FOR ELDERLY CARE.

(f) TO MONITOR GAMING ON INDIAN RESERVATIONS AT NO COST TO THE ARIZONA TAXPAYERS.

SECTION 4. Title 5, Chapter 6, Article 1, Arizona Revised Statutes, is amended by adding Section 5-601.02 to read:

5-601.02. TRIBAL-STATE GAMING COMPACTS; POLICIES AND STANDARDS; AMENDMENTS TO EXISTING GAMING COMPACTS; LIMITATIONS ON GAMING DEVICES AND TABLES; ESTABLISHMENT OF THE ARIZONA COLLEGE SCHOLARSHIP AND ELDERLY CARE FUND; ESTABLISHMENT OF TRIBAL-STATE COMPACT FUND; FUND EXPENDITURES; CONDITIONS FOR REPEAL OF COMPACT PROVISIONS; INTER-TRIBAL TRANSFER OF GAMING DEVICES; DEFINITIONS.

A. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE GOVERNOR, ON BEHALF OF THE STATE OF ARIZONA, SHALL ENTER INTO A TRIBAL-STATE GAMING COMPACT PURSUANT TO THIS SECTION WITH EACH INDIAN TRIBE THAT REQUESTS SUCH A COMPACT. UPON RECEIPT OF A REQUEST FROM AN INDIAN TRIBE, THE GOVERNOR SHALL WITHIN NINETY DAYS ENTER INTO A TRIBAL-STATE GAMING COMPACT WITH THE REQUESTING INDIAN TRIBE.

B. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, ANY TRIBAL-STATE GAMING COMPACT THAT IS EXECUTED, AMENDED OR RENEWED PURSUANT TO THIS SECTION SHALL REFLECT THE FOLLOWING POLICIES AND STANDARDS FOR THE CONDUCT OF GAMING ON INDIAN RESERVATIONS AND SHALL CONTAIN THE FOLLOWING TERMS:

(1) TERM OF GAMING COMPACT. THE TERM OF THE TRIBAL-STATE GAMING COMPACT SHALL BE FOR TWENTY YEARS. A TRIBAL-STATE GAMING COMPACT SHALL BE EXTENDED FOR ADDITIONAL TWENTY-YEAR TERMS AT ANY TIME BEFORE THE EXPIRATION OF THE TERM OF THE TRIBAL-STATE GAMING COMPACT THEN IN EXISTENCE UPON THE REQUEST OF AN INDIAN TRIBE.

(2) AUTHORIZED GAMING. AN INDIAN TRIBE SHALL BE AUTHORIZED TO CONDUCT GAMING AT THREE GAMING FACILITIES, AND SUCH ADDITIONAL GAMING FACILITIES AS SHALL BE AGREED UPON BY THE GOVERNOR AND EACH INDIAN TRIBE. FOR PURPOSES OF THIS SECTION, GAMING SHALL INCLUDE ALL FORMS OF CLASS I, CLASS II, AND CLASS III GAMING AS DEFINED IN 25 UNITED STATES CODE SECTION 2703, PARAGRAPHS (6), (7) AND (8) IN EFFECT AS OF THE EFFECTIVE DATE OF THIS ACT, IT BEING UNDERSTOOD THAT THE STATE OF ARIZONA SHALL NOT HAVE ANY AUTHORITY OR JURISDICTION OVER OR POWER TO REGULATE OR MONITOR CLASS I OR CLASS II GAMING THAT TAKES PLACE ON ANY INDIAN RESERVATION.

(3) FORMS OF PAYMENT. ALL PAYMENT FOR WAGERS MADE ON AUTHORIZED FORMS OF GAMING CONDUCTED BY AN INDIAN TRIBE, INCLUDING THE PURCHASE OF TOKENS FOR USE IN WAGERING, SHALL BE MADE BY CASH, CASH EQUIVALENT, CREDIT CARD OR PERSONAL CHECK. PERSONAL CHECKS SHALL NOT BE HONORED IN EXCESS OF ONE THOUSAND DOLLARS PER PERSON PER DAY. AUTOMATIC TELLER MACHINES MAY BE INSTALLED AT THE GAMING FACILITIES. PERSONAL CHECKS GUARANTEED BY A THIRD PARTY CHECK GUARANTEE COMPANY SHALL BE CONSIDERED AUTOMATIC TELLER MACHINE TRANSACTIONS.

(4) WAGERING LIMITATIONS. THE MAXIMUM WAGER AUTHORIZED FOR ANY SINGLE PLAY OF A GAMING DEVICE IS TWENTY-FIVE DOLLARS. THE MAXIMUM WAGER FOR ANY SINGLE PLAY AT ANY TABLE GAME SHALL BE DETERMINED THROUGH NEGOTIATIONS BETWEEN THE GOVERNOR AND EACH INDIAN TRIBE WITH THE OBJECTIVE OF AGREEING ON WAGERING LIMITATIONS CONSISTENT WITH GAMING INDUSTRY PRACTICE LIMITATIONS. ALL WAGERING LIMITATIONS ESTABLISHED PURSUANT TO THIS PARAGRAPH SHALL BE INCREASED IN AN AMOUNT EQUAL TO THE ANNUAL INCREASE IN THE CONSUMER PRICE INDEX. IN THIS PARAGRAPH, "CONSUMER PRICE INDEX" MEANS THE CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS, UNITED STATES CITY AVERAGE, THAT IS PUBLISHED BY THE UNITED STATES DEPARTMENT OF LABOR, BUREAU OF LABOR STATISTICS.

(5) HOURS OF OPERATION. AN INDIAN TRIBE MAY ESTABLISH BY ORDINANCE OR REGULATION THE PERMISSIBLE HOURS AND DAYS OF OPERATION OF GAMING ACTIVITIES, PROVIDED, HOWEVER, THAT THE INDIAN TRIBE SHALL COMPLY WITH ALL APPLICABLE STATE LIQUOR LAWS AT ALL GAMING FACILITIES.

(6) OWNERSHIP OF THE GAMING FACILITIES AND GAMING ACTIVITIES. INDIAN TRIBES SHALL HAVE THE SOLE PROPRIETARY INTEREST IN AND RESPONSIBILITY FOR THE CONDUCT OF ANY GAMING ACTIVITIES. NOTHING IN THIS PROVISION SHALL BE CONSTRUED TO PREVENT AN INDIAN TRIBE FROM GRANTING SECURITY INTEREST OR OTHER FINANCIAL ACCOMMODATIONS TO SECURED PARTIES, LENDERS OR OTHERS, OR TO PREVENT AN INDIAN TRIBE FROM ENTERING INTO TRUE LEASES OR FINANCING LEASE ARRANGEMENTS OR TO HIRE OR RETAIN AN OPERATOR, MANAGER OR MANAGEMENT COMPANY TO OPERATE OR MANAGE THE GAMING FACILITY.

(7) RESTRICTIONS ON MINORS. UNLESS OTHERWISE PERMITTED UNDER STATE LAW, NO PERSON UNDER TWENTY-ONE YEARS OF AGE SHALL BE PERMITTED TO PLACE ANY WAGER, DIRECTLY OR INDIRECTLY, AS PART OF ANY GAMING ACTIVITY CONDUCTED AT A GAMING FACILITY OR BE EMPLOYED IN THE SERVICE OF ALCOHOLIC BEVERAGES AT ANY GAMING FACILITY.

(8) RECORD KEEPING. THE GAMING FACILITY OPERATOR SHALL MAINTAIN A SURVEILLANCE LOG RECORDING ALL MATERIAL SURVEILLANCE ACTIVITIES IN THE SURVEILLANCE ROOM OF THE GAMING FACILITIES, WHICH LOG SHALL BE AVAILABLE FOR INSPECTION BY THE DEPARTMENT ON NOT LESS THAN TWENTY-FOUR HOURS NOTICE TO THE INDIAN TRIBE.

(9) OPERATION AS PART OF A NETWORK. GAMING DEVICES AUTHORIZED PURSUANT TO A TRIBAL-STATE GAMING COMPACT MAY BE OPERATED TO OFFER AN AGGREGATE PRIZE OR PRIZES AS PART OF A NETWORK WITH THE GAMING DEVICES OF OTHER INDIAN TRIBES LOCATED WITHIN THE STATE THAT HAVE ENTERED INTO GAMING COMPACTS WITH THE STATE.

(10) GAMING CONTRIBUTION. EACH INDIAN TRIBE ENTERING INTO A TRIBAL-STATE GAMING COMPACT PURSUANT TO THIS SECTION SHALL ANNUALLY CONTRIBUTE TO THE STATE AN AMOUNT EQUAL TO THREE PER CENT OF EACH INDIAN TRIBE’S ANNUAL NET INCOME AS DEFINED IN SUBSECTION M, PARAGRAPH 1 OF THIS SECTION FOR DEPOSIT IN THE ARIZONA COLLEGE SCHOLARSHIP AND ELDERLY CARE FUND ESTABLISHED IN SUBSECTION H OF THIS SECTION. THE STATE TREASURER SHALL ADMINISTER THE FUND. THE DEPARTMENT SHALL KEEP THE AMOUNT OF THE ANNUAL CONTRIBUTION MADE PURSUANT TO THIS PARAGRAPH BY EACH INDIAN TRIBE CONFIDENTIAL, BUT MAY MAKE PUBLIC THE AMOUNT OF THE TOTAL ANNUAL CONTRIBUTION MADE PURSUANT TO THIS SECTION BY ALL OF THE GAMING INDIAN TRIBES.

(11) GAMING COMPACT MONITORING COSTS. EACH INDIAN TRIBE ENTERING INTO A TRIBAL-STATE GAMING COMPACT PURSUANT TO THIS SECTION SHALL PAY AN ANNUAL FEE OF FIVE HUNDRED DOLLARS PER OPERATING GAMING DEVICE TO THE ARIZONA STATE TREASURER FOR DEPOSIT INTO THE TRIBAL-STATE COMPACT FUND ESTABLISHED IN SUBSECTION J OF THIS SECTION. THE STATE SHALL NOT IMPOSE ANY OTHER FEES OR ASSESSMENTS ON AN INDIAN TRIBE, EXCEPT AS PROVIDED IN THIS SUBSECTION.

(12) RESTRICTION ON FIREARMS. ANY INDIAN TRIBE MAY RESTRICT THE POSSESSION OF A FIREARM WITHIN A GAMING FACILITY. THE RESTRICTION SHALL NOT APPLY TO CERTIFIED LAW ENFORCEMENT OFFICERS AUTHORIZED BY AN INDIAN TRIBE TO BE ON THE PREMISES AS WELL AS ANY PRIVATE SECURITY SERVICE RETAINED TO PROVIDE SECURITY AT A GAMING FACILITY OR ARMORED CAR SERVICES.

(13) INVESTIGATION AND REPORTING OF VIOLATIONS. EACH INDIAN TRIBE SHALL INVESTIGATE ANY REPORTED VIOLATION OF THE TRIBAL-STATE GAMING COMPACT ENTERED INTO PURSUANT TO THIS SECTION OR ANY TRIBAL GAMING ORDINANCE AND SHALL REQUIRE THE GAMING FACILITY OPERATOR TO CORRECT THE VIOLATION UPON SUCH TERMS AND CONDITIONS AS THE INDIAN TRIBE DETERMINES ARE NECESSARY AND PROPER UNDER THE PROVISIONS OF THE TRIBAL-STATE GAMING COMPACT OR THE INDIAN TRIBE’S GAMING ORDINANCE. WITHIN FORTY-EIGHT HOURS OF THE TIME A VIOLATION OR SUSPECTED VIOLATION OF A TRIBAL-STATE GAMING COMPACT OR OF A TRIBAL GAMING ORDINANCE IS REPORTED, AN INDIAN TRIBE SHALL NOTIFY THE DEPARTMENT. AN INDIAN TRIBE SHALL PROVIDE COPIES OF ITS INVESTIGATIVE REPORT TO THE DEPARTMENT, IF THE DISCLOSURE OF THE REPORT WILL NOT COMPROMISE ANY CONTINUING LAW ENFORCEMENT INVESTIGATION.

(14) PROCEDURES FOR EMPLOYMENT OF ENROLLED MEMBERS OF AN INDIAN TRIBE BY THAT INDIAN TRIBE’S GAMING FACILITY OPERATOR. THE GAMING FACILITY OPERATOR OF AN INDIAN TRIBE’S GAMING FACILITY SHALL BE FREE TO EMPLOY ENROLLED TRIBAL MEMBERS OF THAT INDIAN TRIBE IN ITS GAMING FACILITIES PURSUANT TO SUCH RULES AND REGULATIONS ESTABLISHED BY THAT INDIAN TRIBE, IT BEING UNDERSTOOD THAT THE STATE SHALL HAVE NO AUTHORITY OR ROLE IN THE APPROVAL OF ENROLLED TRIBAL MEMBERS EMPLOYED BY THAT INDIAN TRIBE’S GAMING FACILITY OPERATOR.

(15) PROCEDURES FOR NON-ENROLLED TRIBAL MEMBER LICENSING, STATE CERTIFICATION AND STATE CERTIFICATION RENEWAL. EVERY NON-ENROLLED TRIBAL MEMBER APPLICANT FOR A CLASS III TRIBAL GAMING LICENSE AND EVERY NON-ENROLLED TRIBAL MEMBER APPLICANT FOR STATE CERTIFICATION AND RENEWAL OF STATE CERTIFICATION SHALL SUBMIT THE COMPLETED APPLICATION, ALONG WITH ANY OTHER REQUIRED INFORMATION, TO BOTH THE INDIAN TRIBE AND TO THE DEPARTMENT. EACH NON-ENROLLED TRIBAL MEMBER APPLICATION FOR STATE CERTIFICATION AND FOR A CLASS III TRIBAL GAMING LICENSE SHALL BE ACCOMPANIED BY THE APPLICANT’S FINGERPRINT CARD OR CARDS AND A CURRENT PHOTOGRAPH. THE DEPARTMENT SHALL APPROVE OR DENY EACH NON-ENROLLED TRIBAL MEMBER APPLICATION FOR STATE CERTIFICATION OR RENEWAL OF STATE CERTIFICATION WITHIN TEN DAYS OF RECEIPT OF SUCH AN APPLICATION. THE DEPARTMENT SHALL NOT DENY AN APPLICATION OF A NON-ENROLLED TRIBAL MEMBER FOR STATE CERTIFICATION OR RENEWAL OF STATE CERTIFICATION UNLESS SUCH DENIAL IS SOLELY BASED UPON SPECIFIC TERMS AGREED TO BY THE STATE AND EACH INDIAN TRIBE THAT HAS ENTERED INTO A TRIBAL-STATE GAMING COMPACT PURSUANT TO THIS SECTION. ALL OF THE COSTS INCURRED BY THE DEPARTMENT TO COMPLY WITH THIS SECTION SHALL BE PAID FROM THE TRIBAL-STATE COMPACT FUND ESTABLISHED PURSUANT TO SUBSECTION J OF THIS SECTION. THE DEPARTMENT SHALL NOT CHARGE A FEE FOR THE RENEWAL OF STATE CERTIFICATION. THE COST OF BACKGROUND CHECKS TO COMPLY WITH THIS PARAGRAPH SHALL NOT EXCEED THE COMMERCIAL RATE CHARGED FOR SUCH SERVICES AS DETERMINED BY THE STATE AUDITOR GENERAL. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE STATE SHALL ONLY HAVE THE AUTHORITY TO CERTIFY NON-ENROLLED TRIBAL MEMBERS WHO ARE GAMING EMPLOYEES AS DEFINED IN SUBSECTION M PARAGRAPH 6 OF THIS SECTION TO THE EXTENT THE GAMING EMPLOYEES ARE ENGAGED IN CLASS III GAMING ACTIVITIES.

(16) APPENDIXES. EXCEPT AS OTHERWISE AGREED UPON BY THE GOVERNOR AND EACH INDIAN TRIBE, EACH TRIBAL-STATE GAMING COMPACT ENTERED INTO PURSUANT TO THIS SECTION SHALL CONTAIN THE SAME APPENDIX PROVISIONS RELATING TO THE DEFINITIONS, OPERATIONAL STANDARDS, SPECIFICATIONS AND REGULATIONS GOVERNING KENO, THE TECHNICAL STANDARDS FOR ELECTRONIC GAMES OF CHANCE AND THE SECURITY AND SURVEILLANCE REQUIREMENTS AS CONTAINED IN THAT INDIAN TRIBE’S GAMING COMPACT IN EFFECT AS OF JANUARY 1, 2002. IN THE EVENT THAT AN INDIAN TRIBE DOES NOT HAVE A TRIBAL-STATE GAMING COMPACT AS OF JANUARY 1, 2002, THE GOVERNOR AND THAT INDIAN TRIBE SHALL NEGOTIATE IN GOOD FAITH TO AGREE ON APPENDIX PROVISIONS SIMILAR TO THOSE IN EFFECT IN TRIBAL-STATE GAMING COMPACTS AS OF JANUARY 1, 2002. EACH INDIAN TRIBE ENTERING INTO A TRIBAL-STATE GAMING COMPACT PURSUANT TO THIS SECTION SHALL BE AUTHORIZED TO OPERATE KENO GAMES AT TWO LOCATIONS AND SUCH ADDITIONAL NUMBER OF KENO GAMES AS THE GOVERNOR AND EACH INDIAN TRIBE MAY AGREE UPON. IN THE EVENT OF A CONFLICT BETWEEN ANY PROVISION OF THE APPENDIXES AND ANY PROVISION OF THIS SECTION, THE SPECIFIC LANGUAGE OF THIS SECTION SHALL CONTROL.

(17) ARBITRATION. EACH TRIBAL-STATE GAMING COMPACT ENTERED INTO PURSUANT TO THIS SECTION SHALL CONTAIN ALL OF THE PROVISIONS FOR ARBITRATION ESTABLISHED IN § 5-601.05.

(18) LIMITATION ON EXPANSION OF GAMING. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, IF GAMING DEVICES OR TABLE GAMES THAT WOULD OTHERWISE QUALIFY AS CLASS III GAMING PURSUANT TO 25 UNITED STATES CODE SECTION 2703 IN EFFECT AS OF THE EFFECTIVE DATE OF THIS ACT ARE AUTHORIZED BY LAW TO BE CONDUCTED FOR PROFIT OTHER THAN ON AN INDIAN RESERVATION LOCATED WITHIN THE STATE OR IF ANY ADDITIONAL FEES, TAXES OR ASSESSMENTS NOT AUTHORIZED PURSUANT TO THIS SECTION OR SECTION 5-601.03, 5-601.04, 5-601.05 OR 5-601.06 ARE IMPOSED ON AN INDIAN TRIBE RELATING TO GAMING CONDUCTED PURSUANT TO A TRIBAL-STATE GAMING COMPACT ENTERED INTO PURSUANT TO THIS SECTION, BOTH OF THE FOLLOWING SHALL OCCUR: (1) SUBSECTION B PARAGRAPHS 10 AND 11 OF THIS SECTION SHALL BECOME NULL AND VOID AND NO INDIAN TRIBE ENTERING INTO A TRIBAL-STATE GAMING COMPACT PURSUANT TO THIS SECTION SHALL BE REQUIRED TO PAY ANY FEES, ASSESSMENTS OR CONTRIBUTIONS RELATED TO GAMING TO THE STATE; AND (2) SUBSECTIONS E AND F OF THIS SECTION SHALL BECOME NULL AND VOID AND THERE SHALL BE NO LIMITATIONS ON THE NUMBER OF GAMING DEVICES OR TABLE GAMES THAT AN INDIAN TRIBE IS AUTHORIZED TO OPERATE IN THIS STATE. NOTHING IN THIS SUBSECTION IS INTENDED TO RESTRICT OR LIMIT THE USE OF GAMING DEVICES AND TABLE GAMES FOR CHARITY FUNDRAISING.

(19) OTHER GAMING COMPACT TERMS. EXCEPT FOR THE TRIBAL-STATE GAMING COMPACT TERMS SET FORTH IN SUBSECTION B PARAGRAPHS ONE THROUGH EIGHTEEN OF THIS SECTION, THE GOVERNOR, ON BEHALF OF THE STATE, AND AN INDIAN TRIBE MAY MUTUALLY AGREE UPON SUCH OTHER TERMS TO BE INCLUDED IN THAT INDIAN TRIBE’S TRIBAL-STATE GAMING COMPACT AS THE STATE AND EACH INDIAN TRIBE DEEM APPROPRIATE. AFTER THE GOVERNOR, ON BEHALF OF THE STATE, AND AN INDIAN TRIBE HAVE SIGNED A TRIBAL-STATE GAMING COMPACT PURSUANT TO THIS SECTION, THE GOVERNOR, ON BEHALF OF THE STATE, AND AN INDIAN TRIBE MAY MUTUALLY AGREE TO AMEND THE TRIBAL-STATE GAMING COMPACT TERMS CONTAINED IN SUBSECTION B PARAGRAPHS ONE THROUGH EIGHTEEN OF THIS SECTION.

C. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, ANY TRIBAL-STATE GAMING COMPACT BETWEEN AN INDIAN TRIBE AND THE STATE IN EXISTENCE AS OF JANUARY 1, 2003 SHALL BE AMENDED TO CONFORM TO THE PROVISIONS OF THIS SECTION UPON THE WRITTEN REQUEST OF AN INDIAN TRIBE.

D. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE PROVISIONS OF SECTION 5-601 AND SECTION 5-601.01 SHALL NOT APPLY TO ANY TRIBAL-STATE GAMING COMPACT AMENDED CONSISTENT WITH THIS SECTION OR ENTERED INTO BY AN INDIAN TRIBE PURSUANT TO THIS SECTION.

E. EACH INDIAN TRIBE ENTERING INTO A TRIBAL-STATE GAMING COMPACT PURSUANT TO THIS SECTION SHALL BE AUTHORIZED TO OPERATE ONE THOUSAND GAMING DEVICES OR THE NUMBER OF GAMING DEVICES THAT AN INDIAN TRIBE IS OPERATING ON THE EFFECTIVE DATE OF THIS ACT, WHICHEVER IS GREATER, PLUS THAT NUMBER OF GAMING DEVICES OBTAINED BY TRANSFER PURSUANT TO SUBSECTION G OF THIS SECTION. THE MAXIMUM NUMBER OF GAMING DEVICES AUTHORIZED PURSUANT TO THIS SECTION SHALL ANNUALLY MAY INCREASE BY THE ANNUAL PERCENTAGE INCREASE IN THE STATEWIDE POPULATION AS ESTIMATED BY THE DEPARTMENT OF ECONOMIC SECURITY OR ITS SUCCESSOR AGENCY AS OF JULY 1 FOR EACH CALENDAR YEAR BEGINNING ON JANUARY 1, 2005 AND EVERY YEAR THEREAFTER. FOR PURPOSES OF THIS SUBSECTION, GAMING DEVICES OBTAINED BY TRANSFER, LICENSE OR LEASE PURSUANT TO SUBSECTION G OF THIS SECTION SHALL NOT BE CONSIDERED IN CALCULATING THE PERCENTAGE INCREASE IN GAMING DEVICES AUTHORIZED PURSUANT TO THIS SUBSECTION.

F. EACH INDIAN TRIBE ENTERING INTO A TRIBAL-STATE GAMING COMPACT PURSUANT TO THIS SECTION SHALL BE AUTHORIZED TO OPERATE IN EACH GAMING FACILITY TWENTY TABLES AT WHICH TABLE GAMES MAY BE CONDUCTED.

G. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, UNTIL DECEMBER 31, 2007 EACH INDIAN TRIBE THAT HAS NOT ENTERED INTO A TRIBAL-STATE GAMING COMPACT PURSUANT TO § 5-601 OR § 5-601.01 ON THE EFFECTIVE DATE OF THIS ACT OR THAT ENTERED INTO A TRIBAL-STATE GAMING COMPACT PURSUANT TO § 5-601 OR § 5-601.01 BUT IS NOT OPERATING A GAMING FACILITY ON THE EFFECTIVE DATE OF THIS ACT AND WHO ENTERS INTO A TRIBAL-STATE GAMING COMPACT PURSUANT TO THIS SECTION SHALL BE AUTHORIZED TO TRANSFER, LICENSE OR LEASE SOME OR ALL OF THE ALLOTMENT OF GAMING DEVICES THAT ARE AUTHORIZED PURSUANT TO THAT INDIAN TRIBE’S TRIBAL-STATE GAMING COMPACT TO ANOTHER INDIAN TRIBE THAT HAS ENTERED INTO A TRIBAL-STATE GAMING COMPACT PURSUANT TO THIS SECTION ON SUCH TERMS AND CONDITIONS AS THE CONTRACTING INDIAN TRIBES MAY AGREE. BEGINNING ON JANUARY 1, 2008, EACH INDIAN TRIBE ENTERING INTO A TRIBAL-STATE GAMING COMPACT PURSUANT TO THIS SECTION SHALL BE AUTHORIZED TO TRANSFER, LICENSE OR LEASE SOME OR ALL OF THE ALLOTMENT OF GAMING DEVICES THAT ARE AUTHORIZED PURSUANT TO THAT INDIAN TRIBE’S TRIBAL-STATE GAMING COMPACT TO ANOTHER INDIAN TRIBE THAT HAS ENTERED INTO A TRIBAL-STATE GAMING COMPACT PURSUANT TO THIS SECTION ON SUCH TERMS AND CONDITIONS AS THE CONTRACTING INDIAN TRIBES MAY AGREE.

H. THE ARIZONA COLLEGE SCHOLARSHIP AND ELDERLY CARE FUND IS ESTABLISHED CONSISTING OF MONIES RECEIVED PURSUANT TO SUBSECTION B, PARAGRAPH 10 OF THIS SECTION AND MONIES RECEIVED AS DONATIONS. THE MONIES IN THE ARIZONA COLLEGE SCHOLARSHIP AND ELDERLY CARE FUND SHALL ANNUALLY BE EXPENDED ONLY FOR THE FOLLOWING PURPOSES:

(1) SEVENTY-FIVE PER CENT OF THE MONIES SHALL BE DISTRIBUTED TO UNIVERSITIES, COMMUNITY COLLEGES AND TRIBAL COLLEGES FOR SCHOLARSHIPS PURSUANT TO § 5-601.04 BY THE STATE TREASURER UPON RECEIPT OF NOTIFICATION FROM THE ARIZONA DEPARTMENT OF EDUCATION PURSUANT TO § 5-601.04(E);

(2) ONE PER CENT OF THE MONIES, UP TO A MAXIMUM OF TWO HUNDRED THOUSAND DOLLARS IN EACH YEAR, SHALL BE DISTRIBUTED TO THE ARIZONA DEPARTMENT OF EDUCATION FOR REIMBURSEMENT OF EXPENSES INCURRED FOR COMPLIANCE WITH THE PROVISIONS OF § 5-601.04;

(3) FIVE PER CENT OF THE MONIES SHALL BE ANNUALLY TRANSFERRED ON THE FIRST BUSINESS DAY OF EACH JANUARY BEGINNING IN JANUARY 2004 TO THE ARIZONA DEPARTMENT OF EDUCATION FOR DISTRIBUTION IN EQUAL SHARES TO EACH INDIAN TRIBE TO BE EXCLUSIVELY USED FOR EDUCATIONAL PURPOSES, AND THE ARIZONA DEPARTMENT OF EDUCATION SHALL NOT IMPOSE ANY CONDITIONS ON THE INDIAN TRIBE’S RECEIPT OR USE OF THE MONIES DISTRIBUTED PURSUANT TO THIS SECTION;

(4) FOURTEEN PER CENT OF THE MONIES SHALL BE ANNUALLY TRANSFERRED ON THE FIRST BUSINESS DAY OF EACH JANUARY BEGINNING IN JANUARY 2004 TO THE ARIZONA DEPARTMENT OF HEALTH SERVICES FOR PROGRAMS THROUGHOUT THE STATE THAT BENEFIT SENIOR CITIZENS;

(5) FIVE PER CENT OF THE MONIES SHALL BE ANNUALLY TRANSFERRED ON THE FIRST BUSINESS DAY OF EACH JANUARY BEGINNING IN JANUARY 2004 TO THE ARIZONA DEPARTMENT OF HEALTH SERVICES FOR DISTRIBUTION IN EQUAL SHARES TO EACH INDIAN TRIBE TO BE EXCLUSIVELY USED FOR ELDERLY HEALTH CARE SERVICES, AND THE ARIZONA DEPARTMENT OF HEALTH SERVICES SHALL NOT IMPOSE ANY CONDITIONS ON THE INDIAN TRIBE’S OR USE RECEIPT OF THE MONIES DISTRIBUTED PURSUANT TO THIS SECTION.

I. MONIES DEPOSITED IN THE ARIZONA COLLEGE SCHOLARSHIP AND ELDERLY CARE FUND ESTABLISHED IN SUBSECTION H OF THIS SECTION ARE NOT SUBJECT TO LEGISLATIVE APPROPRIATION AND ARE CONTINUOUSLY APPROPRIATED AND EXEMPT FROM THE PROVISIONS OF SECTION 35-190 RELATING TO LAPSING OF APPROPRIATIONS.

J. A TRIBAL-STATE COMPACT FUND IS ESTABLISHED CONSISTING OF MONIES RECEIVED PURSUANT TO SUBSECTION B PARAGRAPH 11 OF THIS SECTION. THE STATE TREASURER SHALL ADMINISTER THE FUND. THE DIRECTOR OF 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 THAT HAS EXECUTED A TRIBAL-STATE GAMING COMPACT WITH THE STATE DISCLOSING IN DETAIL THE ACTIVITIES OF THE DEPARTMENT INCLUDING A FULL AND COMPLETE STATEMENT OF REVENUES DEPOSITED IN AND EXPENDITURES FROM THE TRIBAL-STATE COMPACT FUND. MONIES IN THE TRIBAL-STATE COMPACT FUND SHALL ONLY BE USED: (1) FOR THE PURPOSES ESTABLISHED IN SUBSECTION B, PARAGRAPH 15 OF THIS SECTION; (2) FOR REIMBURSEMENT OF ADMINISTRATIVE AND MONITORING EXPENSES INCURRED BY THE DEPARTMENT PURSUANT TO THIS SECTION; AND (3) FOR EXPENSES INCURRED BY THE COMMISSION ON INDIAN GAMING DISPUTES PURSUANT TO § 5-601.05 AND § 5-601.06. NO MONIES FROM THE TRIBAL-STATE COMPACT FUND SHALL BE USED TO PAY THE COSTS OF LITIGATION OR ARBITRATION INCURRED BY THE DEPARTMENT UNDER THE PROVISIONS OF THIS CHAPTER. IF ANY MONIES REMAIN IN THE TRIBAL-STATE COMPACT FUND AFTER EXPENDITURES PURSUANT TO THIS SECTION AT THE END OF EACH FISCAL YEAR, THE STATE TREASURER SHALL DISTRIBUTE THE REMAINING MONIES TO INDIAN TRIBES ENTERING INTO A TRIBAL-STATE GAMING COMPACT IN AN AMOUNT PROPORTIONATE TO EACH INDIAN TRIBE’S ANNUAL PAYMENT TO THE TRIBAL-STATE COMPACT FUND.

K. MONIES DEPOSITED IN THE TRIBAL-STATE COMPACT FUND ARE SUBJECT TO LEGISLATIVE APPROPRIATION. MONIES IN THE FUND ARE EXEMPT FROM THE PROVISIONS OF § 35-190 RELATING TO THE PROVISIONS ON LAPSING OF APPROPRIATIONS.

L. NOTHING IN THIS SECTION SHALL CREATE OR GIVE RISE TO A PRIVATE CAUSE OF ACTION TO ANY PERSON FOR ANY ACTION OR INACTION PURSUANT TO THIS SECTION TAKEN OR NOT TAKEN BY AN INDIAN TRIBE.

M. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, IF GAMING DEVICES OR TABLE GAMES THAT WOULD OTHERWISE QUALIFY AS CLASS III GAMING PURSUANT TO 25 UNITED STATES CODE SECTION 2703 ARE AUTHORIZED BY LAW TO BE CONDUCTED FOR PROFIT OTHER THAN ON AN INDIAN RESERVATION LOCATED WITHIN THE STATE, SUBSECTION B PARAGRAPHS 10 AND 11 OF THIS SECTION SHALL BECOME NULL AND VOID. NOTHING IN THIS SUBSECTION IS INTENDED TO RESTRICT OR LIMIT THE USE OF GAMING DEVICES AND TABLE GAMES FOR CHARITY FUNDRAISING.M. IN THIS SECTION AND SECTIONS 5-601.03, 5-601.04, 5-601.05 AND 5-601.06, UNLESS THE CONTEXT OTHERWISE REQUIRES:

(1) “ANNUAL NET INCOME” MEANS THE ANNUAL TOTAL AMOUNT OF MONEY COLLECTED FROM CLASS III GAMING, LESS ANY ANNUAL AMOUNTS PAID OUT AS PRIZES OR PAID FOR PRIZES AWARDED AND ANNUAL LABOR AND OTHER OPERATING EXPENSES AND ANNUAL INTEREST EXPENSES, DEPRECIATION AND AMORTIZATION.

(2) “DEPARTMENT” MEANS THE ARIZONA DEPARTMENT OF GAMING.

(3) “ENROLLED TRIBAL MEMBER” MEANS A PERSON WHO IS ENROLLED IN THE INDIAN TRIBE, WHOSE NAME APPEARS IN THE TRIBAL MEMBERSHIP ROLL AND WHO MEETS THE WRITTEN CRITERIA FOR MEMBERSHIP.

(4) “GAMING ACTIVITY” MEANS ALL FORMS OF CLASS I, CLASS II OR CLASS III GAMING CONDUCTED AT A GAMING FACILITY.

(5) “GAMING DEVICE” MEANS A MECHANICAL, ELECTROMECHANICAL ELECTRONIC, MICROPROCESSOR OR OTHER CONTROLLED DEVICE THAT ALLOWS A PLAYER OR PLAYERS TO PLAY GAMES OF CHANCE, WHETHER OR NOT THE OUTCOME IS ALSO AFFECTED, IN WHOLE OR IN PART, BY SKILL, IN WHICH THE DEVICE MAY ACCEPT COINS, TOKENS, BILLS, COUPONS, TICKET VOUCHERS, SMART CARDS, ELECTRONIC IN-HOUSE ACCOUNTING SYSTEM, OR OTHER SIMILAR FORM OF CONSIDERATION AND, THROUGH THE APPLICATION OF CHANCE, SKILL, OR BOTH, ALLOWS THE 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, OR OTHER SIMILAR FORM OF VALUE.

(6) “GAMING EMPLOYEE” MEANS ONLY THOSE PERSONS EMPLOYED BY THE GAMING FACILITY OPERATOR DIRECTLY IN THE CONDUCT OF CLASS III GAMING ACTIVITIES, INCLUDING CAGE PERSONNEL, COUNTING ROOM PERSONNEL, BOXMEN, CASHIERS, CHANGE PERSONNEL, FINANCIAL ACCOUNTING PERSONNEL DIRECTLY INVOLVED IN THE RECORD KEEPING OR THE EXAMINATION OF RECORDS ASSOCIATED WITH REVENUE FROM GAMING ACTIVITIES, FLOORMEN, KENO RUNNERS, KENO WRITERS, MACHINE MECHANICS, ODDS MAKERS, SECURITY PERSONNEL, SURVEILLANCE PERSONNEL, SHIFT OF PIT BOSSES, SUPERVISORS OR MANAGERS OF THE CONDUCT OF GAMING ACTIVITIES, TICKET WRITERS, AND PERSONS WITH UNSUPERVISED ACCESS TO SECURE AREAS OF A GAMING FACILITY.

(7) “GAMING FACILITY” MEANS AND IS LIMITED TO THE AREAS WITHIN A BUILDING SPECIFIED IN WRITING BY THE INDIAN TRIBE IN WHICH GAMING TAKES PLACE IN A BUILDING AND THE SECURE AREAS OF THAT BUILDING.

(8) “GAMING FACILITY OPERATOR” MEANS AN INDIAN TRIBE, AN ENTERPRISE OWNED BY AN INDIAN TRIBE, OR SUCH OTHER ENTITY OF AN INDIAN TRIBE THAT AN INDIAN TRIBE MAY DESIGNATE BY WRITTEN NOTICE TO THE STATE AS THE WHOLLY-OWNED TRIBAL ENTITY HAVING FULL AUTHORITY AND RESPONSIBILITY FOR THE OPERATION AND MANAGEMENT OF CLASS III GAMING ACTIVITIES.

(9) “GAMING GOODS AND SERVICES” MEANS ANY GOODS OR SERVICES, EXCEPT FOR LEGAL SERVICES, PROVIDED TO AN INDIAN TRIBE IN CONNECTION WITH THE OPERATION OF CLASS III GAMING IN A GAMING FACILITY, INCLUDING BUT NOT LIMITED TO, EQUIPMENT OTHER THAN GAMING DEVICES, TRANSPORTATION, FOOD, LINENS, JANITORIAL SUPPLIES, MAINTENANCE, OR SECURITY SERVICES FOR THE GAMING FACILITY.

(10) “INDIAN RESERVATION” MEANS INDIAN LANDS AS DEFINED IN 25 UNITED STATES CODE SECTION 2703 (4) (A) AND (B), SUBJECT TO THE PROVISION OF 25 UNITED STATES CODE SECTION 2719.

(11) “INDIAN TRIBE” MEANS ANY FEDERALLY RECOGNIZED INDIAN TRIBE WITH A RESERVATION LOCATED WITHIN THE STATE.

(12) “SECURE AREAS” MEANS THE GAMING FACILITY SURVEILLANCE ROOM, ALL CASINO FINANCE AREAS, INCLUDING THE HARD COUNT ROOM, THE SOFT COUNT ROOM, THE COIN VAULT, THE MAIN VAULT, THE CHIP COUNT ROOM, THE CHIP OR VAULT STORAGE ROOM, AND ANY OTHER AREAS OF THE GAMING FACILITY DESIGNATED BY THE GOVERNING BODY OF AN INDIAN TRIBE.

(13) “STATE” MEANS THE STATE OF ARIZONA.

(14) “TABLE GAME” MEANS A HOUSE BANKED GAME OF CHANCE, SKILL, OR BOTH, CUSTOMARILY PLAYED IN CASINOS, INCLUDING BUT NOT LIMITED TO, CARD GAMES OF ANY KIND, ROULETTE, CRAPS AND BACCARAT.

SECTION 5. Title 5, Chapter 6, Article 1, Arizona Revised Statutes, is amended by adding Section 5-601.03 to read:

5-601.03. TRIBAL-STATE LICENSING CERTIFICATION REQUIREMENTS.

A. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, EACH MANUFACTURER AND SUPPLIER OF GAMING DEVICES, AND EACH PERSON PROVIDING GAMING GOODS AND SERVICES IN AN AMOUNT IN EXCESS OF FIFTY THOUSAND DOLLARS IN ANY SINGLE MONTH, WITHIN OR WITHOUT THE GAMING FACILITY, SHALL BE LICENSED BY THE TRIBAL GAMING OFFICE AND SHALL BE CERTIFIED BY THE DEPARTMENT BEFORE THE SALE OR LEASE OF ANY GAMING DEVICES OR GAMING GOODS AND SERVICES. EACH INDIAN TRIBE ENTERING INTO A TRIBAL-STATE GAMING COMPACT PURSUANT TO § 5-601.02 SHALL ON A QUARTERLY BASIS, PROVIDE TO THE DEPARTMENT A LIST OF NAMES AND ADDRESSES OF ALL VENDORS PROVIDING GAMING DEVICES AND A SEPARATE LIST OF NAMES AND ADDRESSES OF ALL VENDORS PROVIDING GAMING GOODS AND SERVICES IN AN AMOUNT IN EXCESS OF FIFTY THOUSAND DOLLARS IN ANY SINGLE MONTH. THE STATE SHALL NOT BE ENTITLED TO CHARGE ANY MANUFACTURER OR SUPPLIER OF GAMING DEVICES OR PERSON PROVIDING GAMING GOODS AND SERVICES THAT IS LICENSED BY THE TRIBE ANY FEE FOR CERTIFICATION BY THE DEPARTMENT.

SECTION 6. Title 5, Chapter 6, Article 1, Arizona Revised Statutes, is amended by adding Section 5-601.04 to read:

5-601.04. ARIZONA COLLEGE SCHOLARSHIPS; APPLICATION; SELECTION; DISTRIBUTION OF FUNDS; ADOPTION OF RULES.

A. BEGINNING ON JANUARY 15, 2004, AND EVERY YEAR THEREAFTER THE ARIZONA DEPARTMENT OF EDUCATION SHALL MAKE APPLICATION FORMS, CREATED BY THE ARIZONA DEPARTMENT OF EDUCATION, FOR ARIZONA COLLEGE SCHOLARSHIPS AVAILABLE AT ALL HIGH SCHOOLS IN THE STATE AND TO THE PUBLIC. ARIZONA COLLEGE SCHOLARSHIPS SHALL ONLY BE AWARDED TO RESIDENTS OF ARIZONA FOR USE AT A PUBLIC UNIVERSITY, COMMUNITY COLLEGE OR TRIBAL COLLEGE WITHIN THE STATE. OF THE MONIES RECEIVED BY THE ARIZONA DEPARTMENT OF EDUCATION FOR ARIZONA COLLEGE SCHOLARSHIPS FROM THE ARIZONA COLLEGE SCHOLARSHIP AND ELDERLY CARE FUND ESTABLISHED IN § 5-601.02 (H), SIXTY PER CENT OF THE MONIES SHALL BE USED FOR SCHOLARSHIPS TO ATTEND PUBLIC UNIVERSITIES IN THE STATE AND FORTY PER CENT OF THE MONIES SHALL BE USED FOR SCHOLARSHIPS TO ATTEND COMMUNITY COLLEGES OR TRIBAL COLLEGES IN THE STATE. THE AMOUNT OF EACH SCHOLARSHIP AWARDED PURSUANT TO THIS SECTION TO ATTEND A PUBLIC UNIVERSITY OR FOUR-YEAR TRIBAL COLLEGE IN THE STATE SHALL BE SUFFICIENT TO COVER THE COST OF TUITION FOR EACH SCHOOL YEAR UP TO A MAXIMUM OF FOUR SCHOOL YEARS PER AWARD RECIPIENT. THE AMOUNT OF EACH SCHOLARSHIP AWARDED PURSUANT TO THIS SECTION TO ATTEND A COMMUNITY COLLEGE OR TWO-YEAR TRIBAL COLLEGE IN THE STATE SHALL BE SUFFICIENT TO COVER THE COST OF TUITION FOR EACH SCHOOL YEAR UP TO A MAXIMUM OF TWO SCHOOL YEARS PER AWARD RECIPIENT.

B. FOR EACH YEAR BEGINNING IN 2004, THE ARIZONA DEPARTMENT OF EDUCATION SHALL DETERMINE THE NUMBER OF AVAILABLE SCHOLARSHIPS TO BE AWARDED FOR THAT SCHOOL YEAR.

C. FOR EACH YEAR BEGINNING IN 2004, THE ARIZONA DEPARTMENT OF EDUCATION SHALL NOTIFY BY FIRST CLASS MAIL EACH PERSON CHOSEN TO RECEIVE A SCHOLARSHIP PURSUANT TO THIS SECTION.

D. FOR EACH YEAR BEGINNING IN 2004, EACH SCHOLARSHIP RECIPIENT SHALL SUBMIT TO THE ARIZONA DEPARTMENT OF EDUCATION PROOF OF FULL-TIME ENROLLMENT FOR EACH SEMESTER IN AN ARIZONA UNIVERSITY, COMMUNITY COLLEGE OR TRIBAL COLLEGE. THE ARIZONA DEPARTMENT OF EDUCATION SHALL DETERMINE THE NECESSARY PROOF REQUIRED TO SATISFY THE REQUIREMENTS OF THIS SUBSECTION. IF AN AWARD RECIPIENT DOES NOT COMPLY WITH THE REQUIREMENTS OF THIS SUBSECTION, ANY MONIES ALLOCATED FOR THE PAYMENT OF TUITION FOR THAT AWARD RECIPIENT SHALL REVERT TO THE ARIZONA COLLEGE EDUCATION SCHOLARSHIP AND ELDERLY CARE FUND ESTABLISHED IN § 5-601.02(H) TO BE REALLOCATED AS PART OF ANOTHER SCHOLARSHIP PURSUANT TO THIS SECTION.

E. FOR EACH YEAR BEGINNING IN 2004, THE ARIZONA DEPARTMENT OF EDUCATION SHALL NOTIFY THE STATE TREASURER OF THE AMOUNT TO BE DISTRIBUTED TO EACH UNIVERSITY, COMMUNITY COLLEGE AND TRIBAL COLLEGE TO COVER THE COST OF TUITION SCHOLARSHIPS AWARDED FOR THAT SCHOOL YEAR. THE ARIZONA DEPARTMENT OF EDUCATION SHALL ALSO NOTIFY THE STATE TREASURER OF THE AMOUNT TO BE DISTRIBUTED FOR EXPENSES INCURRED TO COMPLY WITH THE REQUIREMENT OF THIS SECTION.

F. FOR EACH YEAR BEGINNING IN 2004, THE ARIZONA DEPARTMENT OF EDUCATION SHALL PROVIDE A LIST OF SCHOLARSHIP RECIPIENTS FOR THAT SCHOOL YEAR TO EACH UNIVERSITY, COMMUNITY COLLEGE AND TRIBAL COLLEGE REGISTRATION OFFICE.

G. THE ARIZONA DEPARTMENT OF EDUCATION SHALL ADOPT RULES TO IMPLEMENT THE REQUIREMENTS OF THIS SECTION, INCLUDING RULES ESTABLISHING AWARD CRITERIA FOR SCHOLARSHIPS BASED ON AN APPLICANT’S MERIT OR FINANCIAL NEED AND ESTABLISH DEADLINES TO ENSURE THE TIMELY DISTRIBUTION OF SCHOLARSHIP MONIES. RULES ADOPTED BY THE ARIZONA DEPARTMENT OF EDUCATION SHALL BE CONSISTENT WITH THE PURPOSE OF PROVIDING SCHOLARSHIPS TO ARIZONA RESIDENTS TO ATTEND ARIZONA INSTITUTIONS OF HIGHER LEARNING. FOR THE PURPOSES OF THIS SECTION, THE ARIZONA DEPARTMENT OF EDUCATION IS EXEMPT FROM THE RULE MAKING REQUIREMENTS OF TITLE 41, CHAPTER 6.

SECTION 7. Title 5, Chapter 6, Article 1, Arizona Revised Statutes, is amended by adding Section 5-601.05 to read:

5-601.05. ARBITRATION OF GAMING RELATED DISPUTES; NOTICE; PROCESS.

A. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, ALL DISPUTES, CLAIMS, QUESTIONS OR DISAGREEMENTS BETWEEN THE STATE AND AN INDIAN TRIBE ARISING UNDER THIS CHAPTER SHALL BE RESOLVED PURSUANT TO THIS SECTION.

B. EACH TRIBAL-STATE GAMING COMPACT ENTERED INTO BETWEEN THE STATE AND AN INDIAN TRIBE PURSUANT TO § 5-601.02 SHALL CONTAIN A PROVISION REQUIRING THAT ANY DISPUTE, CLAIM, QUESTION, OR DISAGREEMENT ARISING FROM OR RELATING TO THE TRIBAL-STATE GAMING COMPACT OR OTHER PROVISION OF THIS CHAPTER SHALL BE RESOLVED THROUGH GOOD FAITH NEGOTIATIONS BETWEEN INDIAN TRIBES AND THE STATE AND IF SUCH NEGOTIATIONS FAIL, THROUGH ARBITRATION. THE GOVERNOR SHALL REPRESENT THE STATE AS A PARTY TO ANY NEGOTIATION OR ARBITRATION HELD UNDER THIS SECTION.

C. ANY PARTY ASSERTING THAT A DISPUTE, CLAIM, QUESTION, OR DISAGREEMENT HAS ARISEN UNDER THE TRIBAL-STATE GAMING COMPACT OR THIS CHAPTER SHALL SERVE WRITTEN NOTICE ON THE OTHER PARTY IDENTIFYING THE SPECIFIC NATURE OF THE DISPUTE, CLAIM, QUESTION, OR DISAGREEMENT AND ITS FACTUAL BASIS. SERVICE OF THE NOTICE REQUIRED UNDER THIS SECTION SHALL BE MADE IN COMPLIANCE WITH THE ARIZONA RULES OF CIVIL PROCEDURE FOR SERVICE OF PROCESS OR BY REGISTERED OR CERTIFIED MAIL.

D. WITHIN THIRTY DAYS OF COMPLIANCE WITH THE NOTICE REQUIREMENTS IN SUBSECTION C OF THIS SECTION, THE PARTIES SHALL MEET AND ATTEMPT TO RESOLVE IN GOOD FAITH THE DISPUTE, CLAIM, QUESTION, OR DISAGREEMENT. IF GOOD FAITH NEGOTIATIONS DO NOT RESOLVE THE DISPUTE, CLAIM, QUESTION, OR DISAGREEMENT TO THE SATISFACTION OF EITHER PARTY, THE DISSATISFIED PARTY SHALL SERVE WRITTEN NOTICE STATING THE NATURE OF THE DISSATISFACTION ACCORDING TO THE REQUIREMENTS OF SUBSECTION C OF THIS SECTION ON THE OTHER PARTY AND ON THE COMMISSION ON INDIAN GAMING DISPUTES.

E. WITHIN THIRTY DAYS OF RECEIPT OF THE NOTICE PURSUANT TO SUBSECTION D OF THIS SECTION, THE COMMISSION ON INDIAN GAMING DISPUTES APPOINTED PURSUANT TO § 5-601.06 SHALL MEET TO APPOINT AN ARBITRATOR TO RESOLVE THE DISPUTE, QUESTION, CLAIM OR DISAGREEMENT. THE ARBITRATION SHALL BE GOVERNED ACCORDING TO RULES ESTABLISHED BY THE COMMISSION ON INDIAN GAMING DISPUTES.

F. UNLESS THE PARTIES AND THE ARBITRATOR OTHERWISE AGREE, WITHIN FIFTEEN DAYS OF APPOINTMENT PURSUANT TO SUBSECTION E OF THIS SECTION, THE ARBITRATOR SHALL MEET WITH THE PARTIES TO DETERMINE AN ARBITRATION SCHEDULE INCLUDING WHETHER AND TO WHAT EXTENT DISCOVERY IS REQUIRED. UPON CONCLUSION OF THE DISCOVERY PERIOD, IF ANY, ESTABLISHED BY THE ARBITRATOR, THE ARBITRATOR SHALL SCHEDULE AN ARBITRATION HEARING UNLESS THE PARTIES AGREE IN WRITING TO RESOLVE THE DISPUTE WITH WRITTEN SUBMISSIONS ONLY. ANY ARBITRATION UNDER THIS SECTION SHALL OCCUR AT A LOCATION AGREED TO BY THE PARTIES. IF THE PARTIES FAIL TO AGREE ON A LOCATION, THE ARBITRATOR SHALL SELECT THE LOCATION FOR THE ARBITRATION HEARING. THE ARBITRATOR SHALL RENDER A DECISION WITHIN TWENTY DAYS OF THE CONCLUSION OF THE ARBITRATION HEARING. UNLESS THE PARTIES AND THE ARBITRATOR OTHERWISE AGREE, THE WRITTEN AND SIGNED DECISION OF THE ARBITRATOR SHALL BE NONAPPEALABLE AND BINDING UPON THE PARTIES, AND JUDGMENT THEREON MAY BE CONFIRMED AND ENFORCED IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF ARIZONA IN ACCORDANCE WITH THE LAWS OF THE UNITED STATES OR IN ANY TRIBAL COURT IN ACCORDANCE WITH APPLICABLE TRIBAL LAW.

G. AN INDIAN TRIBE ENTERING INTO A TRIBAL-STATE GAMING COMPACT AND THE STATE EACH WAIVES ITS SOVEREIGN IMMUNITY SOLELY FOR THE PURPOSE OF ALLOWING A BINDING ARBITRATION AS PROVIDED BY THIS SECTION TO PROCEED AND BE ENFORCED CONSISTENT WITH THE PROVISIONS OF THIS SECTION.

H. EACH PARTY SHALL PAY ITS OWN ATTORNEY FEES AND EXPENSES AND AN EQUAL SHARE OF THE COSTS OF ARBITRATION, EXCEPT AS OTHERWISE ORDERED BY THE ARBITRATOR.

I. FOR PURPOSES OF THIS SECTION, “PARTY” OR “PARTIES” MEANS THE GOVERNOR, AN INDIAN TRIBE, OR BOTH.

SECTION 8. Title 5, Chapter 6, Article 1, Arizona Revised Statutes, is amended by adding Section 5-601.06 to read:

5-601.06. COMMISSION ON INDIAN GAMING DISPUTES; POWERS AND DUTIES.

A. A COMMISSION ON INDIAN GAMING DISPUTES IS ESTABLISHED CONSISTING OF TWO MEMBERS APPOINTED BY THE GOVERNOR, TWO MEMBERS APPOINTED BY THE ATTORNEY GENERAL, AND FIVE MEMBERS APPOINTED BY THE GOVERNOR FROM A LIST OF INDIAN TRIBAL MEMBERS SUBMITTED TO THE GOVERNOR BY INDIAN TRIBAL LEADERS OF INDIAN TRIBES THAT HAVE ENTERED INTO A TRIBAL-STATE GAMING COMPACT PURSUANT TO SECTION 5-601.02. THE GOVERNOR SHALL MAKE THE APPOINTMENTS OF INDIAN TRIBAL MEMBERS AND THE APPOINTMENTS SHALL BE MADE SOLELY FROM THE LIST SUBMITTED BY THE INDIAN TRIBAL LEADERS NOT MORE THAN THIRTY DAYS AFTER THE GOVERNOR RECEIVES THE LIST OF TRIBAL MEMBERS SUBMITTED PURSUANT TO THIS SUBSECTION. ALL MEMBERS OF THE INITIAL COMMISSION ON INDIAN GAMING DISPUTES SHALL BE APPOINTED BY MARCH 1, 2003. COMMISSION MEMBERS SHALL VOTE FOR A COMMISSION CHAIRMAN.

B. MEMBERS OF THE COMMISSION SHALL SERVE FIVE-YEAR TERMS. IF A VACANCY OCCURS ON THE COMMISSION, A NEW COMMISSIONER SHALL BE APPOINTED WITHIN THIRTY DAYS OF THE VACANCY BY THE SAME APPOINTING OFFICER OR THEIR SUCCESSOR WHO MADE THE APPOINTMENT OF THE MEMBER WHOSE POSITION ON THE COMMISSION IS VACANT AND IN THE SAME MANNER AS THE VACANT COMMISSIONER’S APPOINTMENT WAS MADE.

C. THE COMMISSION SHALL MEET BY APRIL 1, 2003 TO SELECT A POOL OF AT LEAST FOUR QUALIFIED TRIBAL-STATE GAMING COMPACT DISPUTE ARBITRATORS. ARBITRATORS SELECTED UNDER THIS SECTION SHALL BE APPOINTED TO THREE-YEAR TERMS THAT MAY BE RENEWED BY THE COMMISSION. THE COMMISSION SHALL ESTABLISH QUALIFICATIONS FOR ARBITRATORS AND SOLICIT APPLICATIONS IN A MANNER REASONABLY CALCULATED TO ATTRACT QUALIFIED ARBITRATORS. AFTER THE APPOINTMENT OF THE INITIAL POOL OF ARBITRATORS PURSUANT TO THIS SUBSECTION, THE COMMISSION SHALL MEET WHENEVER THE COMMISSION CHAIRMAN DEEMS NECESSARY TO CARRY OUT THE PURPOSES OF THE COMMISSION.

D. BY JUNE 1, 2003, THE COMMISSION SHALL ESTABLISH ARBITRATION RULES THAT SHALL GOVERN ARBITRATION PROCEEDINGS CONDUCTED PURSUANT TO SECTION 5-601.05.

E. WITHIN TWENTY DAYS AFTER RECEIPT OF THE NOTICE PURSUANT TO SECTION 5-601.05(D), THAT AN ARBITRATION IS NECESSARY TO RESOLVE A DISPUTE, CLAIM, QUESTION OR DISAGREEMENT PURSUANT TO A TRIBAL-STATE GAMING COMPACT OR OTHERWISE UNDER THIS CHAPTER, THE COMMISSION SHALL MEET AND APPOINT AN ARBITRATOR TO PRESIDE OVER THE ARBITRATION. THE ARBITRATOR SHALL CONDUCT THE ARBITRATION IN COMPLIANCE WITH THE PROVISIONS OF § 5-601.05 AND THE RULES ESTABLISHED BY THE COMMISSION PURSUANT TO SUBSECTION D OF THIS SECTION. ARBITRATORS SELECTED PURSUANT TO THIS SECTION MAY CHARGE A REASONABLE FEE FOR CONDUCTING THE ARBITRATION THAT SHALL BE EVENLY DIVIDED AMONG THE PARTIES TO THE ARBITRATION, EXCEPT AS MAY OTHERWISE BE ORDERED BY THE ARBITRATOR.

F. COMMISSION MEMBERS ARE ELIGIBLE TO RECEIVE COMPENSATION IN THE AMOUNT OF ONE HUNDRED FIFTY DOLLARS FOR EACH DAY OF ACTUAL SERVICE IN THE BUSINESS OF THE COMMISSION. COMMISSION MEMBERS ARE ELIGIBLE TO RECEIVE COMPENSATION FOR ALL EXPENSES NECESSARILY AND PROPERLY INCURRED IN ATTENDING COMMISSION MEETINGS. THE COMPENSATION OF COMMISSION MEMBERS PURSUANT TO THIS SUBSECTION SHALL BE ANNUALLY INCREASED FROM AND AFTER JANUARY 1, 2003 BY THE PERCENTAGE CHANGE IN THE CONSUMER PRICE INDEX. IN THIS SUBSECTION, "CONSUMER PRICE INDEX" MEANS THE CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS, UNITED STATES CITY AVERAGE, THAT IS PUBLISHED BY THE UNITED STATES DEPARTMENT OF LABOR, BUREAU OF LABOR STATISTICS.

G. EXPENSES INCURRED BY THE COMMISSION TO PERFORM ITS DUTIES UNDER THIS SECTION AND § 5-601.05 SHALL BE PAID FROM THE TRIBAL-STATE COMPACT FUND PURSUANT TO § 5-601.02(J).

H. FOR PURPOSES OF THIS SECTION, “COMMISSION” MEANS THE COMMISSION ON INDIAN GAMING DISPUTES ESTABLISHED PURSUANT TO THIS SECTION.

SECTION 9. Title 13, Chapter 33, Arizona Revised Statutes, is amended by adding section 13-3302.01 to read:

13-3302.01. EXCLUSION FOR GAMBLING ON INDIAN RESERVATIONS; APPLICABILITY; GAMBLING AGE.

A. EXCEPT AS PROVIDED IN SUBSECTION B, THE PROVISIONS OF THIS CHAPTER SHALL NOT APPLY TO GAMBLING OCCURRING ON THE RESERVATION OF A FEDERALLY RECOGNIZED INDIAN TRIBE PURSUANT TO A TRIBAL-STATE GAMING COMPACT ENTERED INTO PURSUANT TO TITLE 5, CHAPTER 6.

B. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, GAMBLING CONDUCTED BY A FEDERALLY RECOGNIZED INDIAN TRIBE THAT INCLUDES ALL FORMS OF CLASS I, CLASS II, AND CLASS III GAMING AS DEFINED IN 25 UNITED STATES CODE SECTION 2703, PARAGRAPHS (6), (7) AND (8) IN EFFECT AS OF THE EFFECTIVE DATE OF THIS ACT BY PERSONS TWENTY-ONE YEARS OF AGE OR OLDER SHALL BE LEGAL ON AN INDIAN RESERVATION OF A FEDERALLY RECOGNIZED INDIAN TRIBE IN THE STATE.

Section 10. Conflict with inconsistent statutes.

IF ANY PART OF THIS ACT CONFLICTS WITH ANY LAW OF THE STATE IN EFFECT AS OF NOVEMBER 1, 2002, THE PROVISIONS OF THIS ACT SHALL PREVAIL IN ALL PARTICULARS AS TO WHICH THERE IS A CONFLICT.

Section 11. Conflict with legislative referendum.

THE PROVISIONS OF THIS ACT ARE INTENDED TO CONFLICT WITH ANY REFERENDUM RELATING TO INDIAN GAMING REFERRED BY THE STATE LEGISLATURE FOR PLACEMENT ON THE NOVEMBER 5, 2002 GENERAL ELECTION STATEWIDE BALLOT AND THE PROVISIONS OF THIS ACT SHALL PREVAIL IN ALL PARTICULARS AS TO WHICH THERE IS A CONFLICT.

SECTION 12. Conflict with other ballot initiatives.

THE PROVISIONS OF THIS ACT ARE INTENDED TO CONFLICT WITH ANY OTHER INITIATIVE RELATING TO INDIAN GAMING ON THE NOVEMBER 5, 2002 GENERAL ELECTION STATEWIDE BALLOT AND THE PROVISIONS OF THIS ACT SHALL PREVAIL IN ALL PARTICULARS AS TO WHICH THERE IS A CONFLICT.

SECTION 13. Severability.

IF ANY PROVISION OF THIS ACT, OR PART THEREOF, IS FOR ANY REASON HELD TO BE INVALID OR UNCONSTITUTIONAL, THE REMAINING PROVISIONS SHALL NOT BE AFFECTED, BUT SHALL REMAIN IN FULL FORCE AND EFFECT, AND TO THIS END THE PROVISIONS OF THE ACT ARE SEVERABLE.