Arizona Secretary of State - Ken Bennett


 
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TITLE 15. REVENUE

CHAPTER 7. DEPARTMENT OF REVENUE
BINGO SECTION


Supp. 07-1

(Authority: A.R.S. §§ 5-402, 42-105)

ARTICLE 1. REPEALED

Article 1, consisting of Section R15-7-101 and R15-7-102, repealed effective January 16, 1997 (Supp. 97-1).

Section

R15-7-101. Repealed

R15-7-102. Repealed

ARTICLE 2. GENERAL PROVISIONS

Section

R15-7-201. Definitions

R15-7-202. Special Bonus Game

R15-7-203. Repealed

R15-7-204. Affidavits

R15-7-205. Reserved

R15-7-206. Monitoring

R15-7-207. Equipment Verification and Replacement

R15-7-208. Conduct of Game - Official Comparison

R15-7-209. Method of Call and Announcement of "Bingo" by a Player

R15-7-210. Multiple Winners

R15-7-211. Declaration of a Completed Game; Prize Award

R15-7-212. Erroneous Calls

R15-7-213. Verification of Winning Cards

R15-7-214. Arizona State Lottery Tickets

R15-7-215. Sale of Bingo Cards

R15-7-216. Duplicate Cards

R15-7-217. Same-day Requirements for Play

R15-7-218. Notice of Charges

R15-7-219. Notice of Prizes

R15-7-220. Alternate Prize for Winning within a Specified Number of Calls

R15-7-221. Availability of Rules and Statutes for Players

R15-7-222. Inducements

R15-7-223. Minors Prohibited from Play

R15-7-224. Repealed

R15-7-225. Verification of Gross Receipts and Purchases

R15-7-226. Legal Debts

R15-7-227. Repealed

R15-7-228. Conditions for Deducting Mortgage Payments

R15-7-229. Repealed

R15-7-230. Financial Report

R15-7-231. Repealed

R15-7-232. Bingo Bank Accounts

R15-7-233. Persons Permitted to Conduct Games; Compensation Allowed

R15-7-234. Informal Resolution after Investigation or Complaint

ARTICLE 3. LICENSING PROVISIONS

Section

R15-7-301. Repealed

R15-7-302. Change in Ownership for Class A License

R15-7-303. Change of Name

R15-7-304. Changes to the License

R15-7-305. Change of Mailing Address

R15-7-306. Termination of License

R15-7-307. Cancellation of an Occasion

R15-7-308. Initial License Application Time-frames

ARTICLE 4. TAX PROVISIONS

Section

R15-7-401. Repealed

R15-7-402. Excess Payments

R15-7-403. Payment under Protest

R15-7-404. Repealed

R15-7-405. Deficiencies; Payment; Appeal

ARTICLE 5. SUSPENSION; REVOCATION; APPEALS

Section

R15-7-501. Repealed

R15-7-502. Suspension of License and Right of Appeal

R15-7-503. Revocation of License and Right of Appeal

R15-7-504. Injunction Against Conducting a Bingo Game after Suspension or Revocation

ARTICLE 6. REPEALED

Section

R15-7-601. Reserved

R15-7-602. Repealed

R15-7-603. Repealed

R15-7-604. Repealed

R15-7-605. Reserved

R15-7-606. Repealed

R15-7-607. Repealed

R15-7-608. Repealed

R15-7-609. Repealed

R15-7-610. Repealed

R15-7-611. Repealed

R15-7-612. Repealed

R15-7-613. Repealed

R15-7-614. Repealed

R15-7-615. Repealed

R15-7-616. Repealed

R15-7-617. Reserved

R15-7-618. Repealed

R15-7-619. Repealed

R15-7-620. Repealed

R15-7-621. Repealed

R15-7-622. Repealed

ARTICLE 1. REPEALED

R15-7-101. Repealed

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective December 22, 1989 (Supp. 89-4). Repealed effective January 16, 1997 (Supp. 97-1).

R15-7-102. Repealed

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective April 25, 1986 (Supp. 86-2). Amended effective December 22, 1989 (Supp. 89-4). Repealed effective January 16, 1997 (Supp. 97-1).

ARTICLE 2. GENERAL PROVISIONS

R15-7-201. Definitions

In addition to the definitions provided in A.R.S. § 5-401, unless the context requires otherwise, the following definitions apply to this Chapter and to A.R.S. Title 5, Chapter 4:

"Bingo" means a game of chance in which a prize is awarded to a player who obtains a designated pattern or sequence of numbers or symbols on a card that are the same as the pattern or sequence of numbers or symbols selected at random. When placed in quotation marks, "bingo" means the designated pattern or sequence of numbers or symbols needed to win a bingo game.

"Bingo worker" means a manager, supervisor, proceeds coordinator, or assistant who is participating in any manner in the holding, operating, or conducting of the bingo occasion.

"Books and records" means documents relating to the financial affairs of an organization kept in the organization's regular course of business and include the following:

Bank account records,

Journals and ledgers,

Receipts and invoices,

Winner signature sheets,

Verification reports required under R15-7-225,

Game programs, and

Any other documents used in connection with bingo operations.

"Calendar week" means seven days, beginning at 12:00:01 a.m. Sunday and ending midnight Saturday, Arizona time.

"Caller" means the person calling the bingo balls at an occasion.

"Card" means a device of bingo play such as a sheet of paper that is provided by a licensee to a player before the start of a game, that bears parallel rows of spaces with each space, except a designated "free" space, containing numbers or symbols, and that is part of a deck, group, or series of cards, no two of which are alike. A space on a card may contain a preprinted pattern in addition to a number or symbol.

"Cover-all" means a bingo game in which the designated bingo pattern is all spaces on a card.

"Day" means a 24-hour period beginning at 12:00:01 a.m. Arizona time and ending at 12:00:00 p.m.

"Department" means the Arizona Department of Revenue.

"Door prize" means a type of inducement in which a prize is given to an individual, selected at random, who is present on the premises during a bingo occasion.

"Inducement" means:

Anything of value given to a person at a bingo occasion, other than a prize awarded for obtaining "bingo"; or

The sale of anything to a person at a bingo occasion for less than its fair market value.

"Player" means an individual, 18 years of age or older, who pays the admission fee, if any, to be admitted to the premises and who plays one or more cards.

"Proprietary, equitable, or credit interest" includes any arrangement in which a person has:

A security interest or lien that is attached to any property of a licensee,

A right to sell or lease to a licensee, or

A right to reacquire property sold to a licensee.

"Receptacle" means a container, such as a blower and cage, that holds the bingo balls or objects used in bingo games.

"Special bonus game" means a series of bingo games, played on the same day of each week during a calendar quarter, with a quarterly prize limit of $12,000.

"Split-the-pot" means a bingo game in which the prize is a portion of the money received from card sales.

"Wild number bingo" means a game of bingo in which a ball is drawn from a receptacle or selected using another random method to determine all wild numbers for a game and all wild numbers are deemed called.

"Winner-take-all" means a game of bingo in which the prize is all money received from card sales.

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective April 25, 1986 (Supp. 86-2). Amended effective December 22, 1989 (Supp. 89-4). Amended by final rulemaking at 9 A.A.R. 4186, effective November 8, 2003 (Supp. 03-3).

R15-7-202. Special Bonus Game

A. A Class B or C licensee may hold only one special bonus game on the same respective day of each calendar week. A licensee shall continue a special bonus game throughout the calendar quarter in which the special bonus game begins or until the total prize amount awarded for the game reaches $12,000.00 in the aggregate per quarter. The licensee shall not carry over any unused portion of the $12,000.00 limit into any other quarter. A licensee may conduct no more than five different special bonus games per quarter.

B. A licensee wishing to conduct a special bonus game shall submit the application provided by the Department and receive written approval before initiating the special bonus game. A manager of the licensee shall attest to the accuracy of the application by signing the application. Each special bonus game application shall include the following:

1. The licensee's name, address, and license number;

2. The day of the week the special bonus game will be played;

3. A description of the manner in which the special bonus game will be conducted and the total amount of prize money to be offered each quarter;

4. The pattern that will be required to win the bingo game;

5. The number of calls within which the pattern must be accomplished to win the prize, if applicable;

6. The dollar value of each designated prize;

7. The type of card to be used; and

8. The cost per card to the player.

C. The Department shall approve only a special bonus game application that is complete and that describes a special bonus game that complies with A.R.S. Title 5, Chapter 4, and this Chapter. The Department shall return the application to the licensee with either an approval or an explanation for the disapproval within 14 days of the receipt of the application. The licensee may amend the application and resubmit it for the Department's approval.

D. A licensee may cancel a special bonus game by sending written notice to the Department before the beginning of a quarter. The licensee shall submit a special bonus game application before changing any aspect of the special bonus game as described in the application under subsection (B). A change of a special bonus game may take effect only on the first day of a quarter. The approval to hold special bonus games shall be conspicuously displayed at the place where the games of bingo are to be conducted at all times during any game.

Historical Note

Adopted effective April 25, 1986 (Supp. 86-2). Amended effective December 22, 1989 (Supp. 89-4). Amended by final rulemaking at 9 A.A.R. 4186, effective November 8, 2003 (Supp. 03-3).

R15-7-203. Repealed

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Repealed effective December 22, 1989 (Supp. 89-4).

R15-7-204. Affidavits

A person submitting an affidavit required under A.R.S. § 5-404 shall use a form provided by the Department and sign the affidavit under penalty of perjury.

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective December 22, 1989 (Supp. 89-4). Amended by final rulemaking at 9 A.A.R. 4186, effective November 8, 2003 (Supp. 03-3).

R15-7-205. Reserved

R15-7-206. Monitoring

A licensee shall prohibit any unauthorized person from conducting a bingo game.

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective December 22, 1989 (Supp. 89-4). Amended by final rulemaking at 9 A.A.R. 4186, effective November 8, 2003 (Supp. 03-3).

R15-7-207. Equipment Verification and Replacement

A. Before beginning a bingo occasion, the supervisor for the occasion shall:

1. Verify that all equipment is in sound working condition;

2. Verify that the use of the equipment and the methods of play provide each player an equal opportunity to win; and

3. Verify, in the presence of one or more players, that all bingo balls are present and that there are no duplicate balls.

B. The supervisor for a bingo occasion shall immediately replace all defective bingo balls before continuing with the game, regardless of the time of discovery.

C. An authorized representative of the Department may order that any defective equipment be repaired or replaced.

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective December 22, 1989 (Supp. 89-4). Amended by final rulemaking at 9 A.A.R. 4186, effective November 8, 2003 (Supp. 03-3).

R15-7-208. Conduct of Game - Official Comparison

A. A supervisor shall use the bingo balls that are placed on the master board for the official comparison to the designated bingo pattern or sequence, rather than a lighted number display board.

B. Wild number bingo balls need not be pulled from the receptacle or placed on the master board to be recognized as valid bingo balls called.

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective December 22, 1989 (Supp. 89-4). Amended by final rulemaking at 9 A.A.R. 4186, effective November 8, 2003 (Supp. 03-3).

R15-7-209. Method of Call and Announcement of "Bingo" by a Player

A. Once a caller has initiated a call, the caller shall complete the call. A call is initiated when the caller begins to vocally announce the letter designation on the bingo ball.

B. A caller shall allow a reasonable length of time for a player to announce "bingo" before proceeding with the next call.

C. A caller shall not remove more than one bingo ball at any time from the receptacle.

D. A caller shall not declare a player as the winner of a bingo game, unless the player has obtained "bingo" on the last called number and has announced the "bingo" to a bingo worker before initiation of the next call.

E. A caller may turn off the machine used to select the bingo balls during a game if the next bingo ball can be secured so that it does not fall into the receptacle. The caller shall call the number of the secured ball unless a valid bingo is declared on the prior number called.

Historical Note

Adopted effective June 5, 1984. Amended effective June 20, 1984 (Supp. 84-3). Amended effective December 22, 1989 (Supp. 89-4). Amended by final rulemaking at 9 A.A.R. 4186, effective November 8, 2003 (Supp. 03-3).

R15-7-210. Multiple Winners

If it is necessary to share a designated prize because there are multiple winners on the last called number, the following provisions apply:

1. If the designated prize consists of cash or check, a licensee shall divide the total amount of the prize equally between the verified winners. The licensee may round prize amounts up to the next higher dollar.

2. If the designated prize is an item of merchandise that cannot be divided, the bingo licensee shall do either of the following:

a. Award to each verified winner an identical prize or substitute merchandise prize closely approximate or equal in value to the other prizes awarded with the aggregate value of all prizes awarded not exceeding the value of the designated prize; or

b. Award to each verified winner an identical amount of money by check or cash with the total value of the amount awarded equaling the value of the designated prize.

3. Subject to subsections (1) and (2), a licensee may establish minimum prizes.

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective December 22, 1989 (Supp. 89-4). Amended by final rulemaking at 9 A.A.R. 4186, effective November 8, 2003 (Supp. 03-3).

R15-7-211. Declaration of a Completed Game; Prize Award

A. After a bingo worker verifies the existence of a winner of a bingo game, the caller shall identify the verified winner and ask if there are other winners. After the verification of each "bingo", the caller shall provide all other players with a reasonable opportunity to claim "bingo" on the same call. If no other players claim "bingo", the caller shall declare the game over and a bingo worker shall award the designated prize. If there are multiple winners, a bingo worker shall award prizes in accordance with R15-7-210.

B. A player shall not receive or share the designated prize unless the player obtains "bingo" and informs the caller of this fact before the caller declares that the game is over.

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective December 22, 1989 (Supp. 89-4). Amended by final rulemaking at 9 A.A.R. 4186, effective November 8, 2003 (Supp. 03-3).

R15-7-212. Erroneous Calls

A. If a caller makes an error calling the number on a bingo ball or identifying the number of bingo balls called, the caller shall immediately correct the error before proceeding with the game. The caller shall not correct the error calling the number on the bingo ball or identifying the number of bingo balls called after the game is completed in accordance with R15-7-211.

B. If, as the result of correcting an error, a player would have obtained "bingo" on the correct number or another number already called, the licensee shall award the game prize to the winning player as if the correct number had been the last number called.

C. If a player obtains "bingo" as a result of an erroneously called number, the licensee shall declare the bingo invalid. A licensee shall not award a prize based on an erroneous call.

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective April 25, 1986 (Supp. 86-2). Amended effective December 22, 1989 (Supp. 89-4). Amended by final rulemaking at 9 A.A.R. 4186, effective November 8, 2003 (Supp. 03-3).

R15-7-213. Verification of Winning Cards

A. After a player has announced "bingo" during a bingo game, a bingo worker shall verify whether the player's card has a winning bingo pattern in the presence of a disinterested player. Except as provided in subsections (A)(1) and (A)(2), the bingo worker shall verify a winning bingo pattern by announcing the numbers from the player's card.

1. If a licensee's bingo equipment is manufactured to automatically verify winning bingo patterns, a bingo worker shall verify a winning bingo pattern by announcing the card identification number.

2. For the cover-all bingo pattern, the bingo worker may announce the numbers not called during the bingo game.

B. A bingo worker shall verify only one winning bingo pattern on a card per game.

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective April 25, 1986 (Supp. 86-2). Amended effective December 22, 1989 (Supp. 89-4). Amended by final rulemaking at 7 A.A.R. 3467, effective July 17, 2001 (Supp. 01-3).

R15-7-214. Arizona State Lottery Tickets

A licensee may sell, or give as prizes, tickets or other chances to participate in the Arizona State Lottery.

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended by final rulemaking at 9 A.A.R. 4186, effective November 8, 2003 (Supp. 03-3).

R15-7-215. Sale of Bingo Cards

A. A licensee shall sell bingo cards on the premises where the game of bingo is to be played.

B. A licensee shall not reserve cards for a player.

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective April 25, 1986 (Supp. 86-2). Amended effective December 22, 1989 (Supp. 89-4). Amended by final rulemaking at 9 A.A.R. 4186, effective November 8, 2003 (Supp. 03-3).

R15-7-216. Duplicate Cards

A. A licensee shall not use duplicate cards during a bingo game.

B. If a licensee determines that there are multiple winners in a single game with duplicate cards, the licensee shall notify the Department's Bingo Section within seven days from the date of occurrence.

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective April 25, 1986 (Supp. 86-2). Amended subsection B. effective December 22, 1989 (Supp. 89-4). Amended by final rulemaking at 9 A.A.R. 4186, effective November 8, 2003 (Supp. 03-3).

R15-7-217. Same-day Requirements for Play

Any licensee conducting a bingo occasion shall sell cards, determine winners, and award all prizes within the same day. A bingo occasion begins when persons are admitted to the building or premises for the purpose of playing bingo.

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective December 22, 1989 (Supp. 89-4). Amended by final rulemaking at 9 A.A.R. 4186, effective November 8, 2003 (Supp. 03-3).

R15-7-218. Notice of Charges

A bingo licensee shall, before the sale of cards for a bingo occasion, post a notice in a conspicuous place on the premises listing the charges for admission and cards. The licensee shall charge all players the publicly posted rates.

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective April 25, 1986 (Supp. 86-2). Amended effective December 22, 1989 (Supp. 89-4). Amended by final rulemaking at 9 A.A.R. 4186, effective November 8, 2003 (Supp. 03-3).

R15-7-219. Notice of Prizes

A. Before the sale of cards for an occasion, a licensee shall post a notice in a conspicuous place on the premises, describing the nature and dollar value of each prize, including the method of determining any substitute prize for multiple winners.

B. If a licensee conducts a "split-the-pot" or "winner-take-all" special game, the licensee shall announce the dollar value of the minimum prize before the first number is called. The licensee shall announce the actual dollar value of the prize before the game is over.

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective December 22, 1989 (Supp. 89-4). Amended by final rulemaking at 9 A.A.R. 4186, effective November 8, 2003 (Supp. 03-3).

R15-7-220. Alternate Prize for Winning within a Specified Number of Calls

A. Within the dollar limits prescribed by A.R.S. § 5-406(P), a licensee may offer an alternate prize based on the number of calls within which a successful "bingo" is obtained, provided the licensee announces before the start of the game:

1. The number of calls within which the "bingo" must be obtained, and

2. The type or dollar value of any alternate prize.

B. In a bingo game offering an alternate prize for winning within a specified number of calls, the licensee shall have a disinterested player verify the number of balls called before the licensee awards any prize.

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective April 25, 1986 (Supp. 86-2). Amended subsection A effective December 22, 1989 (Supp. 89-4). Amended by final rulemaking at 9 A.A.R. 4186, effective November 8, 2003 (Supp. 03-3).

R15-7-221. Availability of Rules and Statutes for Players

A licensee shall have, on the premises during an occasion, a copy of this Chapter and A.R.S. Title 5, Chapter 4, available for inspection by any player upon request. The licensee shall post a notice in a prominent place on the premises stating that copies are available.

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective December 22, 1989 (Supp. 89-4). Amended by final rulemaking at 9 A.A.R. 4186, effective November 8, 2003 (Supp. 03-3).

R15-7-222. Inducements

A. A licensee that offers an inducement shall offer the inducement to all players on a nondiscriminatory basis.

B. The value of an inducement in the form of tangible property is the difference between the property's fair market value and the discounted price. A licensee shall not offer or give away inducements with an aggregate value of more than $250 per occasion.

C. If a licensee wishes to offer a door prize as an inducement, the licensee shall comply with A.R.S. § 5-406(X) regarding the manner in which the licensee determines the winner of the door prize.

D. A card given to a player at a reduced price, or without charge, in connection with the purchase of a card or cards is not an inducement.

E. A card given away with no purchase required is an inducement and is valued at the rate posted under R15-7-218.

Historical Note

Adopted effective April 25, 1986 (Supp. 86-2). Amended effective December 22, 1989 (Supp. 89-4). Amended by final rulemaking at 9 A.A.R. 4186, effective November 8, 2003 (Supp. 03-3).

R15-7-223. Minors Prohibited from Play

No bingo card shall be sold or bingo prize awarded to any person under 18 years of age.

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3).

R15-7-224. Repealed

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Repealed effective December 22, 1989 (Supp. 89-4).

R15-7-225. Verification of Gross Receipts and Purchases

A. The supervisor for an occasion shall accurately complete a verification report form prescribed by the Department for the occasion. The verification report form shall include the following:

1. The licensee's name and license number,

2. The number of players,

3. The name of the supervisor,

4. The total number and dollar value of cards sold,

5. The total income from cards sold,

6. Itemization of bingo supplies sold,

7. Itemization of inducements provided,

8. A cash reconciliation,

9. The computation of adjusted gross receipts, and

10. A bingo game worksheet for tracking the income and prizes for each game.

B. A licensee shall obtain invoices for all bingo supplies purchased by the licensee for resale to bingo patrons. The licensee shall retain these invoices with other records maintained under this Chapter.

Historical Note

Adopted effective April 25, 1986 (Supp. 86-2). Amended effective December 22, 1989 (Supp. 89-4). Amended by final rulemaking at 9 A.A.R. 4186, effective November 8, 2003 (Supp. 03-3).

R15-7-226. Legal Debts

A licensee shall pay all expenses of bingo games when due. If a licensee incurs debt in violation of this Section, the licensee shall not enter into any arrangement or agreement to forgive the debt, unless otherwise authorized by law.

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended by final rulemaking at 9 A.A.R. 4186, effective November 8, 2003 (Supp. 03-3).

R15-7-227. Repealed

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective April 25, 1986 (Supp. 86-2). Repealed effective December 22, 1989 (Supp. 89-4).

R15-7-228. Conditions for Deducting Mortgage Payments

A. A licensee may deduct mortgage payments from adjusted gross receipts for only one premises if the mortgage payments are a reasonable and bona fide expense under A.R.S. § 5-107(G). If there are multiple owners conducting games on the same premises, the owners shall prorate the mortgage payment deduction among themselves, based on the owners' percentage of use of the premises.

B. If no mortgage exists, taxes and insurance are considered on-going expenses of the organization and the licensee shall not deduct taxes and insurance from bingo adjusted gross receipts. The licensee may deduct taxes and insurance from bingo net proceeds.

C. A licensee shall purchase any premises on which the licensee intends to conduct bingo for a commercially reasonable purchase price. If the Department questions the reasonableness of the purchase price, the Department shall obtain an appraisal of the premises. The licensee may obtain and submit an independent appraisal by a certified appraiser that the Department shall consider in conjunction with the Department's appraisal.

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective December 22, 1989 (Supp. 89-4). Amended by final rulemaking at 9 A.A.R. 4186, effective November 8, 2003 (Supp. 03-3).

R15-7-229. Repealed

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective April 25, 1986 (Supp. 86-2). Repealed effective December 22, 1989 (Supp. 89-4).

R15-7-230. Financial Report

A. The financial report required under A.R.S. § 5-407 is due even if no occasions were held during the reporting period. A licensee may file the financial report in advance if the licensee knows that no occasions will be held and no bingo funds will be expended during the reporting period.

B. A licensee shall report all interest earned on the licensee's special checking account or additional interest-bearing accounts required under A.R.S. § 5-407 as gross receipts during the reporting period in which the interest is received. The Department considers interest received when the financial institution credits the interest to the licensee's account.

C. Financial reports that are filed in person are delinquent if received by the Department after the due date. If a licensee files a financial report by mail, the report is timely only if the financial report is postmarked on or before the due date. If a due date falls on Saturday, Sunday, or a legal holiday, the due date for filing is the business day following the Saturday, Sunday, or holiday.

D. A licensee that makes an expenditure, other than a prize paid to a bingo winner, of $300 or more during the reporting period shall include in the financial report the name and address of each person to whom $300 or more was paid and the purpose of the expenditure.

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective April 25, 1986 (Supp. 86-2). Amended effective December 22, 1989 (Supp. 89-4). Amended by final rulemaking at 9 A.A.R. 4186, effective November 8, 2003 (Supp. 03-3).

R15-7-231. Repealed

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective December 22, 1989 (Supp. 89-4). Section repealed by final rulemaking at 9 A.A.R. 4186, effective November 8, 2003 (Supp. 03-3).

R15-7-232. Bingo Bank Accounts

A. A licensee shall maintain only one, federally insured checking account for bingo purposes. The licensee shall maintain sufficient funds in the bingo checking account to cover all checks written. A licensee shall not stop payment on any prize check without first notifying the Department.

B. A licensee may establish interest-bearing accounts that are federally insured. If the licensee transfers funds from an interest bearing account, the licensee shall directly transfer the funds into the bingo checking account before making any expenditure.

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective April 25, 1986 (Supp. 86-2). Amended effective December 22, 1989 (Supp. 89-4). Amended by final rulemaking at 9 A.A.R. 4186, effective November 8, 2003 (Supp. 03-3).

R15-7-233. Persons Permitted to Conduct Games; Compensation Allowed

A. A member or new member of a parent organization may work at a bingo occasion held by the parent organization's auxiliary. A member or new member of an auxiliary organization may work at a bingo occasion held by the auxiliary's parent organization.

B. A licensee shall not pay and a bingo worker shall not accept a commission, salary, tips, or other compensation for rendering services related to bingo except as provided in A.R.S. § 5-407(G)(8). The term "compensation" includes discount dinners or other functions conducted specifically for bingo workers.

C. A licensee shall ensure that persons who participate in the conduct of bingo games satisfy membership requirements under A.R.S. § 5-413 on and after the submission date of the affidavit required by R15-7-204.

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective April 25, 1986 (Supp. 86-2). Amended effective December 22, 1989 (Supp. 89-4). Amended by final rulemaking at 9 A.A.R. 4186, effective November 8, 2003 (Supp. 03-3).

R15-7-234. Informal Resolution after Investigation or Complaint

A. If, as the result of an investigation by the Department, the Department finds that an error or violation of a rule or statute has occurred, Department personnel shall direct the licensee to rectify the error or violation and discontinue any practice causing the error or violation. The Department shall send written confirmation of the directive to the licensee and to the complainant, if applicable, by certified mail.

B. If the licensee disagrees with the Department's directive, the licensee may, within 10 days of the directive, request in writing an informal meeting with the Department's bingo administrator. Within 30 days after receipt of the request, the Department shall send written notice of the Department's final decision to the licensee by certified mail.

C. If a licensee fails to comply with a directive of the Department, the Department may institute suspension or revocation procedures, based on the severity of the violation. The licensee may appeal a suspension or revocation decision under A.R.S. Title 41, Chapter 6, Article 10.

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective December 22, 1989 (Supp. 89-4). Amended by final rulemaking at 9 A.A.R. 4186, effective November 8, 2003 (Supp. 03-3).

ARTICLE 3. LICENSING PROVISIONS

R15-7-301. Repealed

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective April 25, 1986 (Supp. 86-2). Amended effective December 22, 1989 (Supp. 89-4). Section repealed by final rulemaking at 9 A.A.R. 4186, effective November 8, 2003 (Supp. 03-3).

R15-7-302. Change in Ownership for Class A License

If a Class A licensee is not a natural person, the manager shall notify the Department of any change in licensee ownership or control within 30 days after the effective date of the change.

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective December 22, 1989 (Supp. 89-4). Amended by final rulemaking at 9 A.A.R. 4186, effective November 8, 2003 (Supp. 03-3).

R15-7-303. Change of Name

A licensee shall notify the Department of a change in the name under which the licensee is operating within seven days of the effective date of the change.

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective December 22, 1989 (Supp. 89-4). Amended by final rulemaking at 9 A.A.R. 4186, effective November 8, 2003 (Supp. 03-3).

R15-7-304. Changes to the License

A licensee shall conduct bingo occasions on days, at times, and with personnel listed on the license approved by the Department. The licensee shall obtain prior written consent of the Department before making any changes from information stated on its licensee.

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective April 25, 1986 (Supp. 86-2). Amended effective December 22, 1989 (Supp. 89-4). Amended by final rulemaking at 9 A.A.R. 4186, effective November 8, 2003 (Supp. 03-3).

R15-7-305. Change of Mailing Address

A licensee shall notify the Department in writing of any change in mailing address within seven days of the effective date of the change. The licensee shall specify whether the change is for mailing purposes only.

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended by final rulemaking at 9 A.A.R. 4186, effective November 8, 2003 (Supp. 03-3).

R15-7-306. Termination of License

Upon termination of bingo operations, the licensee shall surrender its bingo license to the Department, accompanied by a written statement that provides the date operations terminated. The surrender of the license is effective as of the date on the Department's written acceptance of the surrender. The Department may withhold its acceptance of the surrender if the licensee is being investigated or if suspension or revocation procedures are pending.

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective December 22, 1989 (Supp. 89-4). Amended by final rulemaking at 9 A.A.R. 4186, effective November 8, 2003 (Supp. 03-3).

R15-7-307. Cancellation of an Occasion

A licensee may cancel a bingo occasion after providing written notice to and obtaining approval from the Department, except that, in the case of an emergency, the licensee shall notify the Department in writing within three days after the scheduled date of the occasion and provide the reason for the cancellation.

Historical Note

Adopted effective April 25, 1986 (Supp. 86-2). Amended effective December 22, 1989 (Supp. 89-4). Amended by final rulemaking at 9 A.A.R. 4186, effective November 8, 2003 (Supp. 03-3).

R15-7-308. Initial License Application Time-frames

A. For an initial license, the overall time-frame described in A.R.S. § 41-1072(2) is 60 calendar days.

B. For an initial license, the administrative completeness review time-frame described in A.R.S. § 41-1072(1) is 30 calendar days and begins on the date the Department receives the license application package required by A.R.S. §§ 5-403(B) and 5-404.

1. The Department shall notify the applicant if the package is incomplete. The notice shall specify what information is missing. If the Department does not provide notice to the applicant, the license application package shall be deemed complete at the end of the administrative completeness review time-frame.

2. An applicant with an incomplete license application package shall supply the missing information within 30 calendar days from the date of the notice. The 30-calendar-day time-frame for the Department to finish the administrative review is suspended from the date the Department notifies the applicant of missing information until the date the Department receives the information.

3. If an applicant fails to submit a complete license application package within 30 calendar days from the notice, the Department shall close the file. An applicant whose file has been closed and who later wishes to obtain a license shall submit a new application.

C. For an initial license, the substantive review time-frame described in A.R.S. § 41-1072(3) is 30 calendar days and begins at the end of the administrative completeness review time-frame.

1. As part of the substantive review, the Department may schedule a visit to the premises.

2. At the end of the substantive review time-frame, the Department shall issue a license if the applicant and the premises meet the requirements of A.R.S. § 5-401 et seq. and these rules, or a written notice of denial if the applicant or the premises do not meet requirements of A.R.S. § 5-401 et seq. and these rules.

D. For the purposes of this Section, if the last day of the time-frame falls on a Saturday, Sunday, or legal holiday, the time-frame shall end on the next calendar day which is not a Saturday, Sunday, or legal holiday.

Historical Note

Adopted effective November 19, 1997 (Supp. 97-4).

ARTICLE 4. TAX PROVISIONS

R15-7-401. Repealed

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective December 22. 1989 (Supp. 89-4). Section repealed by final rulemaking at 9 A.A.R. 4186, effective November 8, 2003 (Supp. 03-3).

R15-7-402. Excess Payments

If, after examination of a financial report, the Department determines that the licensee has paid more than the tax lawfully due, the Department shall refund the excess payment or, at the option of the licensee, issue credit equivalent to the excess payment against future tax liability.

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective December 22. 1989 (Supp. 89-4). Amended by final rulemaking at 9 A.A.R. 4186, effective November 8, 2003 (Supp. 03-3).

R15-7-403. Payment under Protest

If a licensee pays any tax, penalty, or interest under protest, the licensee shall submit the protest in writing. The licensee may pursue a protest under A.R.S. Title 41, Chapter 6, Article 10.

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective December 22, 1989 (Supp. 89-4). Amended by final rulemaking at 9 A.A.R. 4186, effective November 8, 2003 (Supp. 03-3).

R15-7-404. Repealed

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Repealed effective December 22, 1989 (Supp. 89-4).

R15-7-405. Deficiencies; Payment; Appeal

A. If the Department determines that additional tax is due, the Department shall issue an assessment for the additional tax due plus any applicable penalty and interest. In any assessment the Department shall indicate the taxable income for the period of the audit, the tax that should have been paid, the tax actually paid, the additional tax due, and the amount of any penalty and interest owed. The Department shall mail an assessment by certified mail to the last known address of the licensee.

B. If a licensee fails to make a report as required under A.R.S. § 5-407, the Department shall obtain facts upon which to base an assessment. The Department may issue a subpoena requiring the licensee, its employees, and its agents to testify under oath.

C. A licensee may, within 30 days of receipt of an additional assessment or tax determination, file a petition for a hearing, correction, or redetermination of the Department's assessment. The licensee shall file the petition under A.R.S. Title 41, Chapter 6, Article 10.

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended by final rulemaking at 9 A.A.R. 4186, effective November 8, 2003 (Supp. 03-3).

ARTICLE 5. SUSPENSION; REVOCATION; APPEALS

R15-7-501. Repealed

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective December 22, 1989 (Supp. 89-4). Section repealed by final rulemaking at 6 A.A.R. 75, effective December 9, 1999 (Supp. 99-4).

R15-7-502. Suspension of License and Right of Appeal

A. The Department shall issue any notice of suspension under A.R.S. § 41-1092.11 and this Chapter.

B. Except as provided in subsection (C), the Department shall send a written suspension notice by certified mail. The Department shall include grounds for suspension and duration of the suspension in the notice, and indicate either:

1. That the suspension takes effect only after public hearing. The licensee may, within 30 days after receiving the notice of suspension, request in writing the modification or vacation of the notice of suspension. The licensee shall state with particularity the licensee's objections to the notice of suspension; or

2. That summary suspension is necessary for public health, safety, or welfare and that the Department has ordered summary suspension of the license pending proceedings for revocation or other action.

C. The Department may give notice of summary suspension orally or in writing, based on considerations of public health, safety, or welfare. If given orally, the Department shall send a written confirmation of the oral notice that contains the same information required in subsection (B) within three work days.

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective December 22, 1989 (Supp. 89-4). Amended by final rulemaking at 9 A.A.R. 4186, effective November 8, 2003 (Supp. 03-3).

R15-7-503. Revocation of License and Right of Appeal

The Department shall notify a licensee in writing, under A.R.S. § 41-1092.11, of license revocation. The Department shall specify the grounds for revocation in the notice. The licensee may, within 30 days after receiving the notice, request in writing modification or vacation of the revocation decision. The appellant shall state with particularity the appellant's objections to the notice of revocation.

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective December 22, 1989 (Supp. 89-4). Amended by final rulemaking at 9 A.A.R. 4186, effective November 8, 2003 (Supp. 03-3).

R15-7-504. Injunction Against Conducting a Bingo Game after Suspension or Revocation

If a licensee conducts or attempts to conduct any bingo game after license suspension or revocation, the Department shall request that the Attorney General's Office initiate legal action to enjoin the activity.

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective December 22, 1989 (Supp. 89-4). Amended by final rulemaking at 9 A.A.R. 4186, effective November 8, 2003 (Supp. 03-3).

ARTICLE 6. REPEALED

R15-7-601. Reserved

R15-7-602. Repealed

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective December 22, 1989 (Supp. 89-4). Section repealed by final rulemaking at 13 A.A.R. 1125, effective May 5, 2007 (Supp. 07-1).

R15-7-603. Repealed

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective December 22, 1989 (Supp. 89-4). Section repealed by final rulemaking at 13 A.A.R. 1125, effective May 5, 2007 (Supp. 07-1).

R15-7-604. Repealed

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective December 22, 1989 (Supp. 89-4). Section repealed by final rulemaking at 13 A.A.R. 1125, effective May 5, 2007 (Supp. 07-1).

R15-7-605. Reserved

R15-7-606. Repealed

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective December 22, 1989 (Supp. 89-4). Section repealed by final rulemaking at 13 A.A.R. 1125, effective May 5, 2007 (Supp. 07-1).

R15-7-607. Repealed

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective December 22, 1989 (Supp. 89-4). Section repealed by final rulemaking at 6 A.A.R. 75, effective December 9, 1999 (Supp. 99-4).

R15-7-608. Repealed

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective December 22, 1989 (Supp. 89-4). Section repealed by final rulemaking at 13 A.A.R. 1125, effective May 5, 2007 (Supp. 07-1).

R15-7-609. Repealed

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective December 22, 1989 (Supp. 89-4). Section repealed by final rulemaking at 6 A.A.R. 75, effective December 9, 1999 (Supp. 99-4).

R15-7-610. Repealed

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Section repealed by final rulemaking at 6 A.A.R. 75, effective December 9, 1999 (Supp. 99-4).

R15-7-611. Repealed

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Repealed effective December 22, 1989 (Supp. 89-4).

R15-7-612. Repealed

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Repealed effective December 22, 1989 (Supp. 89-4).

R15-7-613. Repealed

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective December 22, 1989 (Supp. 89-4). Section repealed by final rulemaking at 6 A.A.R. 75, effective December 9, 1999 (Supp. 99-4).

R15-7-614. Repealed

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective December 22, 1989 (Supp. 89-4). Section repealed by final rulemaking at 6 A.A.R. 75, effective December 9, 1999 (Supp. 99-4).

R15-7-615. Repealed

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective December 22, 1989 (Supp. 89-4). Section repealed by final rulemaking at 6 A.A.R. 75, effective December 9, 1999 (Supp. 99-4).

R15-7-616. Repealed

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective December 22, 1989 (Supp. 89-4). Section repealed by final rulemaking at 6 A.A.R. 75, effective December 9, 1999 (Supp. 99-4).

R15-7-617. Reserved

R15-7-618. Repealed

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective December 22, 1989 (Supp. 89-4). Section repealed by final rulemaking at 6 A.A.R. 75, effective December 9, 1999 (Supp. 99-4).

R15-7-619. Repealed

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective December 22, 1989 (Supp. 89-4). Section repealed by final rulemaking at 6 A.A.R. 75, effective December 9, 1999 (Supp. 99-4).

R15-7-620. Repealed

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective December 22, 1989 (Supp. 89-4). Section repealed by final rulemaking at 6 A.A.R. 75, effective December 9, 1999 (Supp. 99-4).

R15-7-621. Repealed

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective December 22, 1989 (Supp. 89-4). Section repealed by final rulemaking at 13 A.A.R. 1125, effective May 5, 2007 (Supp. 07-1).

R15-7-622. Repealed

Historical Note

Adopted effective June 5, 1984 (Supp. 84-3). Amended effective December 22, 1989 (Supp. 89-4). Section repealed by final rulemaking at 13 A.A.R. 1125, effective May 5, 2007 (Supp. 07-1).


Scott Cancelosi
Director
Public Services Division

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Arizona Administrative Code