Arizona Revised Statute (ARS) 28-708 discusses Racing on highways.
Section A states that a person shall not drive a vehicle or participate in any manner in a race, speed competition or contest, drag race or acceleration contest, test of physical endurance or exhibition of speed or acceleration or for the purpose of making a speed record on a street or highway.
Section B goes on to sat that a person who violates this section of law is guilty of a class 1 misdemeanor. If a person is convicted of a second or subsequent violation of this section within twenty-four months of a first conviction, the person is guilty of a class 6 felony and is not eligible for probation, pardon, suspension of sentence or release on any other basis until the person has served not less than ten days in jail or prison.
The AZ statute states in the following sections the penalties that a motorist convicted of racing on the highway.
C. A person who is convicted of a first violation of this section shall pay a fine of not less than two hundred fifty dollars and may be ordered by the court to perform community restitution.
Here under section F it states a person is convicted of violating this section, the judge may require the surrender to a police officer of any driver license of the person and immediately forward the abstract of conviction to the department [Department of Transportation].
F goes on to say that on a first conviction, the judge may order the suspension of the driving privileges of the person for a period of not more than ninety days. In the case of a first conviction and on receipt of the abstract of conviction and order of the court, the department shall suspend the driving privileges of the person for the period of time ordered by the judge.
From this Arizona state statute it would appear that if you are convicted of a first violation for drag racing you will be charged with a Class 1 Misdemeanor and be required to pay a fine of not less than $250 and may be ordered by the court to perform community service. The judge may also order the suspension of your driver's license for up to 90 days. You are correct that it also comes with 8 points on your license.
Parts we skipped of the statute say that if convicted of two or more violations within 24 months, you will be charged with a Felony and the fine increases to no less than $500, possible community service and your driving privilege will be revoked for one year.
Courts may refer traffic violators to a Traffic Survival School as a condition of sentencing. Traffic Survival Schools (TSS) were designed by the State to reach individuals who have exhibited a disregard for traffic laws and the safety of others.
The TSS Program attempts to modify the behavior of these drivers by teaching them how to avoid adverse traffic situations by increasing their knowledge of Arizona traffic laws, defining their responsibilities while driving, and most importantly, improving their attitude toward safe driving. Whether taking such a course would benefit you any other way, you would need to check with the AZ MVD.
A drag racing citation is likely to affect your insurance by raising your rates by a bit since this is considered a major offense my most insurance providers. To find out exactly how it would affect your insurance rates you would need to speak with your agent about your insurer's rating system since each insurance company has their own rating system.