Mr. Hollis has retired and was not available yesterday for comment.
The charges against Mr. Babbitt came to light in early 1977, and an FBI investigation began in May 1977. After the eight-week investigation, which did not include interviews with several potential witnesses, authorities concluded that the allegations could not be substantiated.

Mr. Babbitt's involvement in gambling debts was mentioned in a November 1986 tape recording that surfaced during the Bolles probe. In the Phoenix police tape, Keith Nation, an undercover informant, is told by Leo Lane, a Colorado man tied in Arizona's greyhound racing industry, that Mr. Babbitt had received a mob payoff.

In the grand jury transcript, Mr. Weisz, who could not be reached yesterday for comment, confirmed that Mr. Lane is heard saying Mr. Babbitt got $45,000 in cash. A January 1986 report by Mr. Weisz quoted Mr. Lane on the tape as saying the "money is a payoff."

The payoff, according to the transcript, dealt with a decision by Arizona legislators to order Emprise Corp. of Buffalo, N.Y., to sell its stake in six Arizona dog tracks. The order was entered after the company was found guilty of conspiring to hide mob interests in a Las Vegas casino in which it held a partnership.

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