Arizona Administrative Code, Title 19 — Alcohol, Horse and Dog Racing, Lottery, and Gaming

Title 4 PROFESSIONS AND OCCUPATIONS

Chapter 15 Board of Massage Therapy

Article 2 LICENSING

Ariz. Admin. Code tit. 4, ch. 15, art. 2, tbl. 1 Time-frames (in Days)

| Type of Approval | Statutory Authority | Overall Time-frame | Administrative Completeness Time-frame | Substantive Review Time-frame | | --- | --- | --- | --- | --- | | Regular license R4-15-201 | A.R.S. § 32-4222 | 120 | 60 | 60 | | License by Reciprocity R4-15-203 | A.R.S. § 32-4223 | 120 | 60 | 60 | | Board-recognized school R4-15-204 | A.R.S. § 32-4228 | 120 | 60 | 60 | | Renewal License | A.R.S. § 32-4225 | 60 | 30 | 30 |

History

• New Table made by final rulemaking at 10 A.A.R. 2668, effective June 8, 2004 (Supp. 04-2). Amended by final rulemaking at 12 A.A.R. 2759, effective September 9, 2006 (Supp. 06-3).

Chapter 2 ARIZONA RACING COMMISSION

Article 6 STATE BOXING AND MIXED MARTIAL ARTS COMMISSION: ADMINISTRATION OF UNARMED COMBAT SPORTS

Part D UNARMED COMBAT RULES

Ariz. Admin. Code tit. 19, ch. 2, art. 6, pt. D, tbl. 2 Bandages (Gauze and Tape)

| Maximum Gauze Dimensions | Maximum Tape Dimensions | Method of Wrapping | | | --- | --- | --- | --- | | Boxing, per hand | 2" wide 60' long | 2" wide 10' long | * Tape shall not extend higher on the hand beyond three-fourths of an inch from the knuckles, when the hand is clenched to make a fist. | | MMA, per hand | 2" wide 39' long | 1" wide 10' long | * Tape may extend to cover and protect the knuckles when the hand is clenched to make a fist. | | Kickboxing, per hand | 2" wide 30' long | 1.5" wide 6' long | * Tape shall not extend higher on the hand beyond one inch from the knuckles, when the hand is clenched into a fist. * It is acceptable to place 1 strip of tape between the fingers not to exceed 1/4" in width and 4" in length to hold bandages in place. | | Kickboxing, per foot | None | 1.5" wide 12' long | * Tape may be used to protect the ankles. * Gauze shall not be used on the feet. * A single elastic or neoprene style supportive sleeve may be worn on each foot and around each knee as long as it has no padding, braces, hinges, or anything that could injure the wearer or his opponent or create an advantage of any kind. | | Muay Thai, per hand | 2" wide 30' long | 1.5" wide 6' long | * Tape shall not extend higher on the hand beyond one inch of the knuckles when the hand is clenched to make a fist. |

History

• Adopted by final rulemaking at 24 A.A.R. 445, effective 2/7/2018.

Chapter 3 ARIZONA STATE LOTTERY COMMISSION

Article 4 DESIGN AND OPERATION OF LOTTERY GAMES GENERALLY

Ariz. Admin. Code tit. 19, ch. 3, art. 4, exh. 3 [REPEALED]

History

• Exhibit 3 adopted effective June 27, 1997 (Supp. 97-2). Repealed by final rulemaking at 11 A.A.R. 393, effective February 15, 2005 (Supp. 04-4).

Ariz. Admin. Code tit. 19, ch. 3, art. 4, exh. 4 [REPEALED]

History

• Exhibit 4 adopted effective June 27, 1997 (Supp. 97-2). Repealed by final rulemaking at 11 A.A.R. 393, effective February 15, 2005 (Supp. 04-4).

Ariz. Admin. Code tit. 19, ch. 3, art. 4, exh. 5 [REPEALED]

History

• Exhibit 5 adopted effective June 27, 1997 (Supp. 97-2). Repealed by final rulemaking at 11 A.A.R. 393, effective February 15, 2005 (Supp. 04-4).

Ariz. Admin. Code tit. 19, ch. 3, art. 4, exh. 6 [REPEALED]

History

• Exhibit 6 adopted effective June 27, 1997 (Supp. 97-2). Repealed by final rulemaking at 11 A.A.R. 393, effective February 15, 2005 (Supp. 04-4).

Ariz. Admin. Code tit. 19, ch. 3, art. 4, exh. 7 [REPEALED]

History

• Exhibit 7 adopted effective June 27, 1997 (Supp. 97-2). Repealed by final rulemaking at 11 A.A.R. 393, effective February 15, 2005 (Supp. 04-4).

Ariz. Admin. Code tit. 19, ch. 3, art. 8 RESERVED

Ariz. Admin. Code tit. 19, ch. 3, art. 9 RESERVED

Article 4 DESIGN AND OPERATION OF LOTTERY GAMES GENERALLY

Ariz. Admin. Code tit. 19, ch. 3, art. 4, exh. 10 [REPEALED]

History

• Exhibit 10 adopted effective June 27, 1997 (Supp. 97-2). Repealed by final rulemaking at 11 A.A.R. 393, effective February 15, 2005 (Supp. 04-4).

Ariz. Admin. Code tit. 19, ch. 3, art. 4, exh. 11 [REPEALED]

History

• Exhibit 11 adopted effective June 27, 1997 (Supp. 97-2). Repealed by final rulemaking at 11 A.A.R. 393, effective February 15, 2005 (Supp. 04-4).

Ariz. Admin. Code tit. 19, ch. 3, art. 4, exh. 12 [REPEALED]

History

• Exhibit 12 adopted effective June 27, 1997 (Supp. 97-2). Repealed by final rulemaking at 11 A.A.R. 393, effective February 15, 2005 (Supp. 04-4).

Ariz. Admin. Code tit. 19, ch. 3, art. 4, exh. 13 [REPEALED]

History

• Exhibit 13 adopted effective June 27, 1997 (Supp. 97-2). Repealed by final rulemaking at 11 A.A.R. 393, effective February 15, 2005 (Supp. 04-4).

Ariz. Admin. Code tit. 19, ch. 3, art. 4, exh. 14 [REPEALED]

History

• Exhibit 14 adopted effective June 27, 1997 (Supp. 97-2). Repealed by final rulemaking at 11 A.A.R. 393, effective February 15, 2005 (Supp. 04-4).

Ariz. Admin. Code tit. 19, ch. 3, art. 4, exh. 15 [REPEALED]

History

• Exhibit 15 adopted effective June 27, 1997 (Supp. 97-2). Repealed by final rulemaking at 11 A.A.R. 393, effective February 15, 2005 (Supp. 04-4).

Chapter 1 DEPARTMENT OF LIQUOR LICENSES AND CONTROL

Article 3 LICENSEE RESPONSIBILITIES

Ariz. Admin. Code tit. 19, ch. 1, art. 3, tbl. A [REPEALED]

History

• Table adopted by final rulemaking at 5 A.A.R. 386, effective January 8, 1999 (Supp. 99-1). Table A recodified from a position after R19-1-305 to a position after R19-1-317 under A.R.S. § 41-1011 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Table A repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2).

Chapter 3 ARIZONA STATE LOTTERY COMMISSION

Article 3 REPEALED

Ariz. Admin. Code tit. 19, ch. 3, art. 3, Illustration B [Repealed]

History

• Illustration B repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code tit. 19, ch. 3, art. 3, Illustration C [Repealed]

History

• Illustration C repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code tit. 19, ch. 3, art. 3, exh. D [Repealed]

History

• Exhibit D repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Chapter 1 DEPARTMENT OF LIQUOR LICENSES AND CONTROL

Article 1 GENERAL PROVISIONS

Ariz. Admin. Code § R19-1-101 Definitions

A. The definitions in A.R.S. §§ 4-101, 4-205.02, 4-205.03, 4-205.06, 4-207, 4-210, 4-227, 4-243, 4-243.01, 4-244, 4-248, 4-251, and 4311 apply to this Chapter. Additionally, in A.R.S. Title 4 and this Chapter, unless the context otherwise requires:

1. "Association" means a group of individuals who have a common interest that is organized as a non-profit corporation or fraternal or benevolent society and owns or leases a business premises for the group's exclusive use.

2. "Bar license" (Series 6) means authorization issued to an on-sale retailer to sell:

a. Spirituous liquors in individual portions for consumption on the licensed premises;

b. Spirituous liquors in an original, unopened, container for consumption off the licensed premises provided sales for consumption off the licensed premises, by total retail sales of spirituous liquor at the licensed premises, are no more than the percentage of the sales price of on-sale spirituous liquor established under A.R.S. § 4-206.01(G); and

c. Beer in accordance with A.R.S. § 4-244(32)(c).

3. "Beer and wine bar license" (Series 7) means authorization issued to an on-sale retailer to sell:

a. Beer and wine in individual portions for consumption on the licensed premises;

b. Beer and wine in an original, unopened, container for consumption off the licensed premises provided sales for consumption off the licensed premises, by total retail sales of spirituous liquor at the licensed premises, are no more than the percentage of the sales price of on-sale spirituous liquor established under A.R.S. § 4-206.01(G); and

c. Beer in accordance with A.R.S. § 4-244(32)(c).

4. "Beer and wine store license" (Series 10) means authorization issued to an off-sale retailer to sell:

a. Wine and beer in an original, unopened, container for consumption off the licensed premises; and

b. Beer in accordance with A.R.S. § 4-244(32)(c).

"Business" means an enterprise or organized undertaking conducted regularly for profit, which may be licensed or unlicensed.

6. "Business premises" means real property and improvements from which a business operates.

7. "Catering establishment" means a business that is available for hire for a particular event and at which food and service is provided for people who attend the event.

8. "Club license" (Series 14) means authorization issued to a club to sell spirituous liquors only to members and members' bona fide guests for consumption only on the premises of the club.

9. "Cocktail mixer" means a non-alcoholic liquid or solid mixture used for mixing with spirituous liquor to prepare a beverage.

10. "Conveyance license" (Series 8) means authorization issued to the owner or lessee of an airplane, train, or boat to sell spirituous liquors for consumption only on the airplane, train, or boat.

"Cooler product" means an alcoholic beverage made from wine or beer and fruit juice or fruit flavoring, often in combination with a carbonated beverage and sugar but does not include a formula wine as defined at 27 CFR 24.10.

12. "Deal" means to sell, trade, furnish, distribute, or do business in spirituous liquor.

13. "Department" means the Director of the Department of Liquor Licenses and Control and the State Liquor Board.

14. "Direct shipment license" (Series 17) means authorization issued to producer, exporter, importer, or rectifier to take an order for spirituous liquor and ship the order under A.R.S. § 4-203.04(A) -(I).

15. "Domestic farm winery license" (Series 13) means authorization issued to a domestic farm winery that produces at least 200 gallons but not more than 40,000 gallons of wine annually. For the purposed of A.R.S. § 4-243, a domestic farm winery is considered an "other producer."

16. "Domestic microbrewery license" (Series 3) means authorization issued to a domestic microbrewery that produces at least 5,000 gallons of beer following its first year of operation and not more than 1.24 million gallons of beer annually and includes authorization to sell beer in a clean glass container that is sealed and labeled as described in A.R.S. § 4-244(32) . For the purposed of A.R.S. § 4-243, a domestic microbrewery is considered an "other producer."

17.15. "Entertainment," as used in A.R.S. § 4-244.05, means any form of amusement including a theatrical, opera, dance, or musical performance, motion picture, videotape, audiotape, radio, television, carnival, game of chance or skill, exhibit, display, lecture, sporting event, or similar activity.

18.16. "Erotic entertainer," as used in A.R.S. § 4-112(G), means an employee who performs in a manner or style designed to stimulate or arouse sexual thoughts or actions.

17. "Farm winery license" (Series 13) means authorization issued to a farm winery that produces at least 200 gallons but not more than 40,000 gallons of wine annually. For the purposed of A.R.S. § 4-243, a farm winery is considered an "other producer."

19.18. "Government license" (Series 5) has the meaning set forth at A.R.S. § 4-101.

20.19. "Hotel-motel license" (Series 11) means authorization issued to a hotel or motel that has a restaurant where food is served to sell spirituous liquors for consumption on the premises of the hotel or motel or by means of a mini-bar.

21.20. "Incidental convenience," as used in A.R.S. § 4-244.05(I), means allowing a customer to possess and consume the amount of spirituous liquor stated in R19-1-324 while at a business to obtain goods or services regularly offered to all customers.

22.21. "In-state producer license" (Series 1) means authorization issued to an entity to produce or manufacture spirituous liquor in Arizona.

23.22. "Interim permit" means temporary authorization issued under A.R.S. § 4-203.01 that allows continued sale of spirituous liquor.

24.23. "Licensed" means a license or interim permit is issued under A.R.S. Title 4 and this Chapter, including a license or interim permit on nonuse status.

25.24. "Licensed retailer" means an on-sale or off-sale retailer.

26.25. "Limited out-of-state producer license" (Series 2L) means authorization issued to an out-of-state producer to sell no more than 50 cases of spirituous liquor through a wholesaler annually.

27.26. "Liquor store license" (Series 9) means authorization issued to an off-sale retailer to sell:

a. Spirituous liquors in an original, unopened, container for consumption off the licensed premises; and

b. Beer in accordance with A.R.S. § 4-244(32) (c).

"Microbrewery license" (Series 3) means authorization issued to a microbrewery that produces at least 5,000 gallons of beer following its first year of operation and not more than 6.2 million gallons of beer annually and includes authorization to sell beer in a clean glass container that is sealed and labeled as described in A.R.S. § 4-244(32)(c). For the purposed of A.R.S. § 4-243, a microbrewery is considered an "other producer."

28. "Non-technical error" means a mistake on an application that has the potential to mislead regarding the truthfulness of information provided.

29. "Nonuse" means a license is not used to engage in business activity authorized by the license for at least 30 consecutive days.

30. "Out-of-state producer license" (Series 2) means authorization issued to an entity to produce, export, import, or rectify spirituous liquors outside of Arizona and ship the spirituous liquors to a wholesaler.

31. "Party" has the same meaning as prescribed in A.R.S. § 41-1001.

32. "Physical barrier" means a wall, fence, rope, railing, or other temporary or permanent structure erected to restrict access to a designated area of a licensed premises.

33. "Producer" means the holder of an in-state, out-of-state, or limited out-of-state producer license.

34. "Product display" means a wine rack, bin, barrel, cask, shelving, or similar item with the primary function of holding and displaying spirituous liquor or other products.

35. "Production and storage spaces" means the same as in A.R.S. § 4-205.10.

36. "Public area" means the same as in A.R.S. § 4-205.10.

35.37. "Quota license" means a bar, beer and wine bar, or liquor store license.

36.38. "Rectify" means to color, flavor, or otherwise process spirituous liquor by distilling, blending, percolating, or other processes.

37.39. "Reset" means a wholesaler adjusts spirituous liquor on the shelves of a licensed retailer.

38.40. "Restaurant continuation authorization" means authorization issued to the holder of a restaurant license to operate under the restaurant license after it is determined that food sales comprise at least 30 percent but less than 40 percent of the business's gross revenue.

39.41. "Restaurant license" (Series 12) means authorization issued to a restaurant, as defined in A.R.S. § 4-205.02, to sell spirituous liquors for consumption only on the restaurant premises.

40.42. "Second-party purchaser" means an individual who is of legal age to purchase spirituous liquor and buys spirituous liquor for an individual who may not lawfully purchase spirituous liquor in Arizona.

41.43. "Special event license" (Series 15) means the authorization provided under A.R.S. § 4-203.02(E).

42.44. "Tapping equipment" means beer, wine, and distilled spirit dispensers as stated in R19-1-326.

43.45. "Technical error" means a mistake on an application that does not mislead regarding the truthfulness of the information provided.

44.46. "Transfer" means to:

a. Move a license from one location to another location within the same county; or

b. Change ownership, directly or indirectly, in whole or in part, of a business.

45.47. "Wholesaler license" (Series 4) means authorization issued to a wholesaler, as prescribed at A.R.S. § 4-243.01, to warehouse and distribute spirituous liquors to a licensed retailer or another licensed wholesaler.

46.48. "Wine festival or fair license" (Series 16) means authorization issued for a specified period to a farm winery to serve samples of its products and sell the products in individual portions for consumption on the premises or in original, unopened, containers for consumption off the premises.

B. This Section is authorized by A.R.S. § 4-112(B)(1)(a).

History

• Former Rule 1; Former Section R4-15-01 renumbered as Section R4-15-101 without change effective October 8, 1982 (Supp. 82-5). Section repealed, new Section adopted effective March 3, 1993 (Supp. 93-1). R19-1-101 recodified from R4-15-101 (Supp. 95-1). Amended effective June 4, 1997, under an exemption from certain provisions of the Administrative Procedure Act pursuant to Laws 1996, Ch. 307, §18 (Supp. 97-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2). New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2). Amended by final expedited rulemaking at 30 A.A.R. 389, effective 2/9/2024.

Ariz. Admin. Code § R19-1-102 Fees and Surcharges; Service Charges

A. Most of the fees and surcharges collected by the Department are established by statute.

B. After a license other than a special event, wine festival or fair, or direct shipment license is approved but before the license is issued, the person that applied for the license shall pay the issuance fee and all applicable surcharges. If the license will be issued less than six months before it is scheduled to be renewed, the person that applied for the license shall also pay one-half of the annual renewal fee.

C. After a new bar, beer and wine bar, or liquor store license is approved but before the license is issued, the person that applied for the license shall, as required by A.R.S. § 4-206.01(A) -(E), pay the fair market value of the license.

D. After a restaurant continuation authorization is approved but before the authorization is issued, the person that applied for the authorization shall pay a one-time fee of $30,000.

E. D. A licensee shall pay the renewal fee established under A.R.S. 4-209(D) annually or double the renewal fee established under A.R.S. 4-209(D) biennially, as specified by the Department. A licensee that fails to submit a renewal application by the deadline established by the Department shall pay a penalty of $150 in addition to the renewal fee.

F. E. At the time of application for a license, an individual required under A.R.S. Title 4 or this Chapter to submit fingerprints for a criminal history background check, shall pay the charge established by the Department of Public Safety for processing the fingerprints. The individual may have the fingerprints taken by a law enforcement agency, other qualified entity, or the Department. If the fingerprints are taken by the Department, the individual shall pay to the Department the actual cost of this service to a maximum of $20.

G. F. Under A.R.S. § 4-205.02(G), the Director shall collect from an applicant for a restaurant license the actual amount incurred to conduct a site inspection to a maximum of $50.

H. G. Under A.R.S. § 4-207.01(B), the Director shall collect from a licensee the actual amount incurred to review and act on an application for approval to alter or change a licensed premise to a maximum of $50.

I. H. Under A.R.S. § 4-206.01(K), the Director establishes and shall collect a fee of $100 from an applicant that applies for sampling privileges associated with a liquor or beer and wine store license and $60 to renew the sampling privilege.

J. I. Under A.R.S. § 4-244.05(J)(4), the Director shall collect from the owner of an unlicensed establishment or premises acting under A.R.S. § 4-244.05 the actual amount incurred to conduct an inspection for compliance with R19-1-324 to a maximum of $50.

K. J. If a check provided to the Department by an applicant or licensee is dishonored by the bank upon presentment, the Department shall:

1. As allowed by A.R.S. § 44-6852, require the applicant or licensee to pay the actual charges assessed by the bank plus a service fee of $25;

Not issue a license, permit, or other approval to the applicant or licensee until all fees, including those referenced in subsection (K)(1), are paid by money order; and

3. Require the applicant or licensee to pay all future fees to the Department by money order.

L. K. As allowed under A.R.S. § 35-142(L), the Department may impose a convenience fee for accepting payment made by credit or debit card.

M. L. This Section is authorized by A.R.S. §§ 4-112(G)(10), 4-205.02, 4-206.01, 4-207.01(B), 4-209, 4-244.05, and 35-142(L).

History

• Former Rule 2; Former Section R4-15-02 renumbered as Section R4-15-102 without change effective October 8, 1982 (Supp. 82-5). Repealed effective July 11, 1983 (Supp. 83-4). New Section adopted effective March 3, 1993 (Supp. 93-1). R19-1-102 recodified from R4-15-102 (Supp. 95-1). Amended by final rulemaking at 11 A.A.R. 5119, effective January 9, 2006 (Supp. 05-4). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2). New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2). Amended by final expedited rulemaking at 30 A.A.R. 389, effective 2/9/2024.
• The following Section was amended under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1996, Ch. 307 § 18. Although exempt from certain provisions of the rulemaking process, the Department was required to provide for reasonable notice and hearing. This Section was not reviewed by the Governor's Regulatory Review Council; and the Department did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register (Supp. 97-2).

Ariz. Admin. Code § R19-1-103 A.r.s. Title 4 Training Course: Minimum Standards

A. As authorized by A.R.S. § 4-112(G)(2), the Department establishes the following minimum standards for an A.R.S. Title 4 training course.

1. A provider of a training course shall ensure that course content, training materials, and examination provide current reference and practical application of statute and this Chapter for:

a. Basic liquor law applicable to an on-sale retail licensee,

b. Management training applicable to an on-sale retail licensee,

c. Basic liquor law applicable to an off-sale retail licensee, and

d. Management training applicable to an off-sale retail licensee;

2. A provider of a Basic On-sale training course shall ensure that the course is a minimum of three hours, excluding sign-in and break times, and course content includes the following topics:

a. General law regarding spirituous liquor.

i. Review of requirements for licensees and employees in Title 4 and this Chapter,

ii. Role and function of the Arizona Department of Liquor Licenses and Control,

iii. Potential legal risks to an on-sale retail licensee,

iv. Potential legal risks to an employee of an on-sale retail licensee,

v. Distinction between off- and on-sale license privileges, and

vi. Types and privileges of on-sale retail licenses,

b. Law regarding a licensed premises.

i. The licensed premises defined;

ii. Entertainment within or on the licensed premises, private parties, special events, or gambling;

iii. Spirituous liquor brought onto or removed from the licensed premises; and

iv. Extending or changing the licensed premises.

c. Law regarding age.

i. Selling spirituous liquor to persons of legal age;

ii. When to require identification of legal age;

iii. Recognizing acceptable forms of identification;

iv. Recognizing invalid forms of identification;

v. Documenting identification inspection by using an ID Log;

vi. Underage individuals in a bar or restaurant at which spirituous liquor is served;

vii. The Covert Underage Buyer Program; and

viii. Refusing to sell spirituous liquor to an underage individual using policy, procedure, and skill assessment;

d. Law regarding intoxication.

i. The effects of spirituous liquor and recognizing signs of obvious intoxication;

ii. Responsibility for the safety of customers;

iii. Service limitations of spirituous liquor at a licensed premises, special event, or sampling event;

iv. Monitoring customer consumption and intervention techniques using skill assessment; and

v. Refusing spirituous liquor service or sale to an intoxicated individual using policy, procedure, and skill assessment;

e. Law regarding second-party sales of spirituous liquor.

i. Definition of second-party sale,

ii. Licensee responsibilities regarding second-party sales,

iii. Recognizing a second-party purchaser,

iv. Preventing a second-party sale, and

v. Refusing to sell to a second-party purchaser;

f. Employee consumption of spirituous liquor;

g. Law regarding legal hours of sale and payment for spirituous liquor at retail locations;

h. Disorderly conduct and acts of violence.

i. Defining disorderly conduct and acts of violence;

ii. Maintaining order on the licensed premises using policy, procedures, and skill assessment;

iii. Locating forms and reporting requirements for an act of violence;

iv. Repeated acts of violence; and

v. Firearms on the licensed premises;

i. Management of problem situations.

i. Kinds of problem situations that may arise,

ii. Recognizing a problem situation, and

iii. Employee responsibilities in a problem situation; and

j. Course review.

i. Summarize course content,

ii. Administer to all participants the examination required under subsection (A)(10),

iii. Have all participants complete the Course Evaluation Form required under subsection (A)(9), and

iv. Issue to qualifying participants the Certificate of Completion required under subsection (A)(11).

3. A provider of a Management On-sale training course shall ensure that the course is a minimum of two hours, excluding sign-in and break times, is preceded by the Basic On-sale training course outlined in subsection (A)(2), and management content includes the following topics:

a. Making changes to and deactivating a liquor license.

i. Liquor license application requirements;

ii. The "capable, qualified, and reliable" requirements for licensure;

iii. Definition of controlling person, types of ownership, and ownership that is unlawful;

iv. Local government approval of liquor license application, including an application for a special event;

v. Distinction between the Director and the Board; and

vi. License application protests, requirements, and procedure;

b. Law enforcement regarding spirituous liquor.

i. Routine liquor inspection of premises,

ii. Common liquor law violations,

iii. Compliance meetings and actions,

iv. Office of Administrative Hearings,

v. Grounds for suspension or revocation,

vi. Administrative liability,

vii. Criminal liability, and

viii. Civil liability;

c. Licensed premises.

i. Diagramming licensed premises, including hotel and motel locations;

ii. Altering licensed premises;

iii. Changing name of business;

iv. Patio requirements; and

v. Unlicensed locations;

d. Liquor license.

i. Posting the liquor license,

ii. Required and optional signs,

iii. Renewing license,

iv. Recordkeeping requirements,

v. Employee log, and

vi. Change in active or nonuse status;

e. Management requirements.

i. Defining on-site manager, responsibilities, and completion of the required questionnaire;

ii. Managing employee and customer safety;

iii. Changing managers;

iv. Changing agents;

v. Restructure; and

vi. Locating forms and required reporting;

f. Spirituous liquor marketing.

i. Coupons and rebates,

ii. Happy hour,

iii. Advertising and signage, and

iv. Promotional and novelty items;

g. General business practices.

i. Sources of spirituous liquor;

ii. Credit purchase of spirituous liquor;

iii. Delivering, shipping, and internet selling of spirituous liquor;

iv. Off-premise storage of spirituous liquor;

v. Wholesaler and retailer relationship and inducements;

vi. Sampling events of spirituous liquor;

vii. Special events and auction of spirituous liquor;

viii. Wine and food clubs;

ix. Cooperative purchase of spirituous liquor,

x. Locking entrance to licensed premises and private parties,

xi. Limiting service to and consumption of spirituous liquor by employees, and

xii. Owner service and consumption of spirituous liquor;

h. Disorderly conduct and acts of violence. The information specified under subsection (A)(2)(h) and management responsibilities; and

i. Course review. The activities specified under subsection (A)(2)(j).

4. A provider of a Basic Off-sale training course shall ensure that the course is a minimum of two hours, excluding sign-in and break times, and course content includes the following topics:

a. General law regarding spirituous liquor.

i. The information specified under subsections (A)(2)(a)(i) and (ii),

ii. Potential legal risks to an off-sale retail licensee,

iii. Potential legal risks to an employee of an off-sale retail licensee, and

iv. Types and privileges of off-sale retail licenses;

b. Law regarding a licensed premises. The information specified under subsections (A)(2)(b)(i), (ii), and (iv);

c. Law regarding age. The information specified under subsections (A)(2)(c)(i) through (v) and (vii) and (viii);

d. Law regarding intoxication. The information specified under subsections (A)(2)(d)(i) through (iii), and (v);

e. Law regarding second-party sales of spirituous liquor. The information specified under subsections (A)(2)(e);

f. Employee consumption of spirituous liquor.

g. Law regarding legal hours of sale.

i. Legal hours of sale in Arizona, and

ii. Refusing an after-hour sale using skill assessment;

h. Law regarding sale of broken packages and on-premises consumption.

i. Definition of broken package and on-premises consumption,

ii. Advising a customer of off-sale consumption restrictions using skill assessment,

iii. Refusing to allow a customer to open or consume spirituous liquor on the licensed premises using skill assessment, and

iv. Refusing to allow a customer to consume spirituous liquor in parking area or property adjacent to licensed premises using skill assessment;

i. Disorderly conduct and acts of violence. The information specified under subsection (A)(2)(h);

j. Management of problem situations. The information specified under subsections (A)(2)(i); and

k. Course review. The activities specified under subsection (A)(2)(j).

5. A provider of a Management Off-sale training course shall ensure that the course is a minimum of two hours, excluding sign-in and break times, and is preceded by the Basic Off-sale training course outlined in subsection (A)(4), and management content includes the following topics:

a. Making changes to and deactivating a liquor license. The information specified under subsection (A)(3)(a);

b. Law enforcement regarding spirituous liquor. The information specified under subsection (A)(3)(b);

c. Licensed premises. The information specified under subsection (A)(3)(c);

d. Liquor license. The information specified under subsection (A)(3)(d);

e. Management requirements. The information specified under subsection (A)(3)(e);

f. Spirituous liquor marketing. The information specified under subsections (A)(3)(f)(i), (iii), and (iv);

g. General business practices.

i. The information specified under subsections (A)(3)(g)(i) through (vii) and (ix) though (xii), and

ii. Drive-through purchase of spirituous liquor;

h. Disorderly conduct and acts of violence. The information specified under subsection (A)(2)(h) and management responsibilities; and

i. Course review. The activities specified under subsection (A)(2)(j).

6. A provider of a Basic Off-sale with On-sale Privileges training course shall ensure that the course addresses the topics specified under subsections (A)(2) and (4).

7. A provider of a Management Off-sale with On-sale Privileges training course shall ensure that the course addresses the topics specified under subsections (A)(3) and (5).

8. A provider of a management training course shall ensure that a sign-in roster is completed and provides the following information:

a. Name of the course provider,

b. Date on which the course was conducted,

c. Location at which the course was conducted,

d. Name of individual who taught the course,

e. Printed name and signature of each participant, and

f. Form of identification accepted by the provider to verify each participant's identity and the number and expiration date of the identification;

9. The Department shall provide a training provider with a Course Evaluation Form that allows a course participant to evaluate the knowledge and competence of the course trainer and the quality of the course.

10. A provider of a training course shall administer an objective examination to measure each participant's completion of the course.

11. The Department shall provide a training provider with an authorized Certificate of Completion form to issue to each participant who attends the course in its entirety, takes the examination required under subsection (A)(10), and completes the Course Evaluation form required under subsection (A)(9). The Department shall ensure that the Certificate of Completion contains the following information:

a. Name of the participant who completed the course,

b. Date on which the course was attended,

c. Notice that the Certificate of Completion expires three years from the date of issuance,

d. Whether the completed course addressed on-sale or off-sale retail requirements or a combination of both,

e. Whether the completed course addressed basic or management information or a combination of both,

f. Name of individual who taught the training course, and

g. Name of the course provider.

12. A provider of a training course shall:

a. Maintain for two years:

i. A record of all Certificates of Completion issued under subsection (A)(11),

ii. Course Evaluation Forms completed by participants as required under subsection (A)(9),

iii. Examination results for each course participant as required under subsection (A)(10), and

iv. Course sign-in rosters required under subsection (A)(8); and

b. Submit to the Department by August 1 of each year, either by mail or electronically, an updated syllabus, examination, and other course materials for each training course provided. The provider shall ensure that the updated syllabus, course materials, and examination clearly indicate:

i. Whether the course is on-sale, off-sale, or a combination of both;

ii. Whether the course is basic or basic plus management;

iii. The name of each trainer authorized by the provider to teach each course;

iv. A list of individuals who are no longer authorized by the provider to teach its courses; and

v. The name, daytime telephone number, and e-mail address of the person responsible for the course provider.

B. Before providing a training course to participants, the provider of the training course shall apply to the Department for approval of the course content.

C. The provider of an approved training course shall, upon request, make the following available to the Department:

1. Record of the Certificates of Completion maintained under subsection (A)(11);

2. All current training course syllabi, course materials, examinations, and Employee Information Forms;

3. A copy of all materials provided to course participants;

4. A copy of all teaching aids used in the training course; and

5. A copy of the Course Evaluations Forms completed under subsection (A)(9).

D. The Department may, at any time, review an approved training course to determine that the course continues to meet the minimum standards specified in this Section. A provider shall inform the Department, upon request, of the date, time, and location of all scheduled training courses and allow the Department to audit the courses for:

1. Compliance with this Section, and

2. Quality and accuracy of the training course content.

E. If the Department determines that a training course fails to meet the minimum standards specified in this Section, the Department shall give notice to the course provider regarding the areas of non-compliance, the steps required to be in compliance, and the date by which compliance must be achieved.

F. If the Department determines that a provider who received notice under subsection (E) failed to achieve compliance by the date specified, the Department may take action to suspend or revoke approval of the training course.

G. This Section is authorized by A.R.S. § 4-112(G)(2).

History

• Former Rule 3; Former Section R4-15-03 renumbered as Section R4-15-103 without change effective October 8, 1982 (Supp. 82-5). Section repealed, new Section adopted effective March 3, 1993 (Supp. 93-1). R19-1-103 recodified from R4-15-103 (Supp. 95-1). Amended effective June 4, 1997, under an exemption from certain provisions of the Administrative Procedure Act pursuant to Laws 1996, Ch. 307, § 18 (Supp. 97-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2). New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-1-104 Shipping Container Labeling; Shipping Requirements

A. An individual or entity, whether licensed or unlicensed under A.R.S. Title 4 and this Chapter, shall ensure that spirituous liquor shipped or offered for shipping within this state for a commercial purpose is in a container that is clearly and conspicuously labeled with or is accompanied by a shipping document containing the following information:

1. Name of the individual or entity consigning or shipping the spirituous liquor,

2. Name and address of the individual or entity to whom the spirituous liquor will be delivered, and

3. Identification of the spirituous liquor.

B. An individual who transports spirituous liquor other than beer from a wholesaler to a licensed retailer shall ensure that:

The individual possesses a bill or memorandum from the wholesaler to the licensed retailer showing the:

a. Name and address of the wholesaler,

b. Name and address of the licensed retailer, and

c. Quantity and type of the spirituous liquor sold and transported; and

2. The bill or memorandum referenced under subsection (B)(1) is exhibited on demand by any peace officer.

C. An individual or entity that ships or offers for shipping spirituous liquor from a point outside Arizona to a final destination in Arizona shall ensure that:

1. With the exception of wine that is being shipped by a common carrier under A.R.S. § 4-203.04(J) or by a licensed farm winery under A.R.S. § 4-205.04(C)(7) or (9), beer that is being shipped by a licensed microbrewery under A.R.S. §5-205.08(D)(4), or distilled spirits that are being shipped by a licensed craft distiller under A.R.S. § 4-205.10(C)(5), the spirituous liquor is consigned to a wholesaler authorized to sell or deal in the particular spirituous liquor being shipped; and

2. The spirituous liquor is placed for shipping with:

a. A common carrier or transportation company that is in compliance with all Arizona and federal law regarding operation of an interstate transportation business, or

b. The wholesaler to whom the spirituous liquor is consigned with the exception of:

i. Wine that is being shipped under A.R.S. § 4-203.04(J) by a common carrier or A.R.S. § 4-205.04(C)(7) or (9) by a licensed farm winery,

ii. Beer that is being shipped under A.R.S. § 4-205.08(D) by a licensed microbrewery, or

iii. Distilled spirits that are being shipped under ARS 4-205.10(C)(5) by a licensed craft distiller.

D. A common carrier or transportation company hired to transport spirituous liquor from a point outside Arizona to a final destination in Arizona shall ensure that:

The common carrier or transportation company maintains possession of the spirituous liquor from the time the spirituous liquor is placed for shipping until it is delivered; and

2. With the exception of spirituous liquor that is being shipped under A.R.S. § 4-203.04(J) or A.R.S. § 4-205.04(C)(7) or (9) by a farm winery licensee, the spirituous liquor is delivered to the licensed premises of the wholesaler to whom the spirituous liquor is consigned.

E. An individual or entity shall not construe this Section in a manner that interferes with the interstate shipment of spirituous liquor, including beer and wine, through this state if the spirituous liquor, as it passes through this state, is under the control of a common carrier or transportation company hired to transport the spirituous liquor.

F. This Section is authorized by A.R.S. § 4-112(B)(1)(a).

History

• Former Rule 4; Former Section R4-15-04 renumbered as Section R4-15-104 without change effective October 8, 1982 (Supp. 82-5). Repealed effective March 3, 1993 (Supp. 93-1). R19-1-104 recodified from R4-15-104 (Supp. 95-1). New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2). Amended by final expedited rulemaking at 30 A.A.R. 389, effective 2/9/2024.
• The following Section was amended under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1996, Chapter 307 § 18. Although exempt from certain provisions of the rulemaking process, the Department was required to provide for reasonable notice and hearing. This Section was not reviewed by the Governor's Regulatory Review Council; and the Department did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register (Supp. 97-2).

Ariz. Admin. Code § R19-1-105 Standards for a Non-contiguous Area of a Licensed Premises

A. When an application is made for inclusion of a non-contiguous area in a licensed premises, the Department shall approve inclusion of the non-contiguous area only if the following standards are met:

1. Unless application is made by a club licensee, the public convenience requires and the best interest of the community will be substantially served by approving inclusion of the non-contiguous area in the licensed premises;

2. The non-contiguous area does not violate A.R.S. § 4-207;

3. The non-contiguous area will be a permanent part of the licensed premises;

4. The walkway or driveway that separates the non-contiguous area from the remainder of the licensed premises is no more than 30 feet wide;

5. The non-contiguous area is completely enclosed by a permanently installed fence that is at least three feet in height;

6. Construction of the business premises in the non-contiguous area will comply with all applicable building and safety standards before spirituous liquor is sold or served in the non-contiguous area; and

7. The licensee demonstrates control of the taking of spirituous liquor between the non-contiguous area and the remainder of the licensed premises.

B. This Section is authorized by A.R.S. § 4-101(31).

History

• Former Rule 5; Former Section R4-15-05 renumbered as Section R4-15-105 without change effective October 8, 1982 (Supp. 82-5). R19-1-105 recodified from R4-15-105 (Supp. 95-1). Amended effective June 4, 1997, under an exemption from certain provisions of the Administrative Procedure Act pursuant to Laws 1996, Ch. 307, § 18 (Supp. 97-2). Section renumbered to R19-1-108, new Section R19-1-105 made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2). Amended by final expedited rulemaking at 30 A.A.R. 389, effective 2/9/2024.
• The following Section was amended under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1996, Ch. 307 § 18. Although exempt from certain provisions of the rulemaking process, the Department was required to provide for reasonable notice and hearing. This Section was not reviewed by the Governor's Regulatory Review Council; and the Department did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register (Supp. 97-2).

Ariz. Admin. Code § R19-1-106 Severability

A. In this Chapter, the subsections of each Section are severable and each Section is severable from the Chapter. If a Section or subsection or the application of a Section or subsection to a particular individual, entity, or circumstance is held to be invalid, the invalidity does not affect the validity of other Sections or subsections and does not affect the validity of the Section or subsection to a different individual, entity, or circumstance.

B. This Section is authorized by A.R.S. § 4-112(B)(1)(b).

History

• Former Rule 6; Former Section R4-15-06 renumbered as Section R4-15-106 without change effective October 8, 1982 (Supp. 82-5). Amended effective July 11, 1983 (Supp. 83-4). Section repealed, new Section adopted effective March 3, 1993 (Supp. 93-1). R19-1-106 recodified from R4-15-106 (Supp. 95-1). Amended effective June 4, 1997, under an exemption from certain provisions of the Administrative Procedure Act pursuant to Laws 1996, Ch. 307, § 18 (Supp. 97-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2). New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).
• The following Section was amended under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1996, Ch. 307 § 18. Although exempt from certain provisions of the rulemaking process, the Department was required to provide for reasonable notice and hearing. This Section was not reviewed by the Governor's Regulatory Review Council; and the Department did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register (Supp. 97-2).

Ariz. Admin. Code § R19-1-107 Electronic Signatures

A. An applicant, licensee, or other person that submits to the Department a form or document required under A.R.S. Title 4 or this Chapter may submit the form or document electronically.

B. This Section is authorized by A.R.S. § 4-112(G)(11).

History

• Adopted effective April 26, 1977 (Supp. 77-2). Former Section R4-15-07 renumbered as Section R4-15-107 without change effective October 8, 1982 (Supp. 82-5). Amended effective January 28, 1987 (Supp. 87-1). R19-1-107 recodified from R4-15-107 (Supp. 95-1). Amended effective June 4, 1997, under an exemption from certain provisions of the Administrative Procedure Act pursuant to Laws 1996, Ch. 307, § 18 (Supp. 97-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2). New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-1-108 [REPEALED]

History

• New Section R19-1-108 renumbered from R19-1-105 by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2). Repealed by final rulemaking at 20 A.A.R. 1207, effective 7/6/2014.

Ariz. Admin. Code § R19-1-109 [REPEALED]

History

• Adopted as an emergency effective September 30, 1981, pursuant to A.R.S. § 1003, valid for only 90 days (Supp. 81-5). Former Section R4-15-09, Quota license selection process, adopted as an emergency, renumbered as Section R4-15-109, expired (Supp. 82-5). Adopted effective December 9, 1982 (Supp. 82-6). Spelling correction, subsection (B), paragraph (3) to adoption effective December 9, 1982 (Supp. 87-1). R19-1-109 recodified from R4-15-109 (Supp. 95-1). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-1-110 Sign Limitations

A. A person, firm, or corporation engaged in business as a manufacturer, distiller, brewer, vintner, or wholesaler or any officer, director, agent, or employee of such person may lend, to the retailer any sign for interior or exterior use provided:

1. The sign must bear conspicuous and substantial advertising matter about a product of the manufacturer, distiller, brewer, vintner, or wholesaler.

2. The cost of the sign may not exceed $400.

3. A sign may not be utilitarian except as to its advertising or information content.

4. No such signs shall be offered or furnished by any manufacturer, distiller, brewer, vintner or wholesaler or by any officer, director, agent, or employee thereof, or by any other person as an inducement to the retailer to purchase or use the products of such manufacturer, distiller, brewer, vintner or wholesaler to the exclusion in whole or in part of the product of any competitor.

B. No signs or other advertising matter used in connection with the licensed premises of any retailer of alcoholic beverages shall be obscene as determined by applying contemporary state standards.

C. Licensed special events are not subject to the limitations of subsections (A)(1) through (3).

History

• New Section R19-1-110 renumbered from R19-1-210 by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-1-111 [REPEALED]

History

• Adopted effective March 3, 1993 (Supp. 93-1). R19-1-111 recodified from R4-15-111 (Supp. 95-1). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-1-112 [REPEALED]

History

• New Section R19-1-112 renumbered from R19-1-228 by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2). Repealed by final rulemaking at 20 A.A.R. 1207, effective 7/6/2014.

Ariz. Admin. Code § R19-1-113 [REPEALED]

History

• New Section R19-1-113 renumbered from R19-1-315 by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2). ARTICLE 2. LICENSING . Repealed by final rulemaking at 20 A.A.R. 1207, effective 7/6/2014.
• The following Section was amended under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1996, Ch. 307 § 18. Although exempt from certain provisions of the rulemaking process, the Department was required to provide for reasonable notice and hearing. This Section was not reviewed by the Governor's Regulatory Review Council; and the Department did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register (Supp. 97-2). Previous amendments were made under a different exemption (Supp. 96-4).

Article 2 LICENSING

Ariz. Admin. Code § R19-1-201 Who May Apply for a License

A. Except as provided in subsection (B) and not withstanding any other law, the following pre-requisites apply for a license under A.R.S. Title 4 and this Chapter.

1. If an individual applies for a license, the individual shall be:

a. A citizen of the United States or a legal resident alien, and

b. A bona fide resident of Arizona;

2. If a partnership applies for a license, each partner shall meet the criteria in subsection (A)(1);

3. Except as provided in subsection (A)(6), if a corporation or limited liability company applies for a license, the corporation or limited liability company shall:

a. Be qualified to do business in Arizona, and

b. Hold the license through an agent who is an individual that meets the criteria in subsection (A)(1);

4. If a limited partnership applies for a license:

a. An individual general partner, but not a limited partner, shall meet the criteria in subsection (A)(1); and

b. A corporate general partner shall meet the criteria in subsection (A)(3);

5. If a club or governmental entity applies for a license, the club or governmental entity shall hold the license through an agent who is an individual that meets the criteria in subsection (A)(1);

If an out-of-state entity applies for a license, the out-of-state entity shall hold the license through an agent who meets the standard described in A.R.S. § 4-202(A).

B. An entity organized outside the U.S. that applies for an out-of-state producer or limited out-of-state producer license is not required to meet the pre-requisites in subsection (A) if the person makes application through an agent who meets the criteria listed in A.R.S. § 41-1080(B).

C. The Department shall accept as evidence that an individual is a citizen of the United States or a legal resident alien the documents listed in A.R.S. § 41-1080(A).

D. The Department shall accept a driver license or voter registration card as evidence that an individual is a bona fide resident of Arizona.

E. The Department shall accept the following, provided by or filed with the Arizona Corporation Commission, as evidence that an entity is qualified to do business in Arizona:

1. Corporation file number, or

2. L.L.C. file number.

F. This Section is authorized by A.R.S. §§ 4-202(A) and 41-1080.

History

• Former Rule 1; Former Section R4-15-20 renumbered as Section R4-15-201 without change effective October 8, 1982 (Supp. 82-5). R-19-1-201 recodified from R4-15-201 (Supp. 95-1). Amended effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996, as required pursuant to Laws 1996, Ch. 307, § 19 (Supp. 96-4). Historical note corrected for clarification. Amended effective June 4, 1997, under an exemption from certain provisions of the Administrative Procedure Act pursuant to Laws 1996, Ch. 307, § 18 (Supp. 97-2). Former Section R19-1-201 recodified to R19-1-314 ; new Section R19-1-201 recodified from R19-1-301 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2). New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-1-202 Application Required

A. An individual or entity that wishes to obtain a license or other approval from the Department shall complete and submit to the Department an application using a form that is available from the Department at its office or online.

B. This Section is authorized by A.R.S. §§ 4-201, 4-202, 4-203, 4-203.01, 4-203.04, and 4-228.

History

• Former Rule 2; Former Section R4-15-21 renumbered as Section R4-15-202 without change effective October 8, 1982 (Supp. 82-5). R19-1-202 recodified from R4-15-202 (Supp. 95-1). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2). New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-1-203 Registration of a Retail Agent

A. Pre-requisites for registration as a retail agent. A person may act as a retail agent only if the person:

1. Holds one of the licenses listed in A.R.S. § 4-222(A);

2. Has a written Cooperative-purchase Agreement, using a form available from the Department, with one or more licensees; and

3. Submits the materials required under subsections (B) and (C) to the Department.

B. To register as a retail agent, a licensee shall submit to the Department the application form prescribed by the Department. The licensee registering shall include the licensee's notarized signature affirming that the licensee will comply with all laws and this Chapter regarding cooperative purchases and that all information provided is true, correct, and complete.

C. In addition to submitting the application form required under subsection (B), an applicant for registration as a retail agent shall submit:

1. A copy of every Cooperative-purchase Agreement reached with another licensee, and

2. The fee prescribed at A.R.S.§ 4-222(B).

D. This Section is authorized by A.R.S. §§ 4-112(B)(1)(d) and 4-222.

History

• Former Rule 3; Former Section R4-15-22 renumbered as Section R4-15-203 without change effective October 8, 1982 (Supp. 82-5). R19-1-203 recodified from R4-15-203 (Supp. 95-1). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2). New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).
• The following Section was amended under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1989, Ch. 234, § 22. The Office of the Secretary of State was not allowed by law to file or publish exempt rules when the Section was amended by the Department. The Department has now filed this Section with the Office of the Secretary of State as required pursuant to Laws 1996, Ch. 307, § 19.

Ariz. Admin. Code § R19-1-204 Obtaining a Quota License

A. The number of quota licenses that the Department may issue in a county is limited.

B. Before issuing a new quota license in a particular county, the Department shall provide notice through available media of its intent to issue a new quota license, the particular kind of quota license to be issued, and invite interested persons in the county to inform the Department of their interest in the manner prescribed by the Department.

C. If the number of interested persons in a particular county exceeds the number of specified quota licenses available, the Department shall use a random selection method to determine priority of individuals who have applied for a new quota license.

D. Before a new quota license is issued to a successful applicant, the applicant shall pay:

1. The issuance fee and applicable surcharges prescribed under A.R.S. § 4-209;

2. One-half of the annual renewal fee if the license will be issued less than six months before it is scheduled to be renewed; and

3. The fair market value of the quota license, as determined by the Department.

E. This Section is authorized by A.R.S. § 4-206.01.

History

• Former Rule 4; Amended effective September 10, 1979 (Supp. 79-5). Former Section R4-15-23 renumbered as Section R4-15-204 without change effective October 8, 1982 (Supp. 82-5). R19-1-204 recodified from R4-15-204 (Supp. 95-1). Amended effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). Amended by exempt rulemaking at 7 A.A.R. 5252, effective November 2, 2001 (Supp. 01-4). Former Section R19-1-204 recodified to R19-1-210 ; new Section R19-1-204 recodified from R19-1-220 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2). New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-1-205 Requirements for a Special Event License

A. To apply for a special event license, an entity authorized under A.R.S. § 4-203.02(B) shall submit to the Department an application form, which is available from the Department.

B. At the same time application is made to the Department under subsection (A), the entity shall submit a copy of the application form to the board of supervisors if the special event is to be held in an unincorporated area or to the governing body of a city or town if the special event is to be held in a city or town. The Department shall issue a special event license subject to the approval of the board of supervisors or governing body.

C. The Department shall issue a special event license to an entity authorized under A.R.S. § 4-203.02(B) for no more than 10 days in each calendar year.

D. This Section is authorized by A.R.S. § 4-203.02.

History

• Former Rule 5; Former Section R4-15-24 renumbered as Section R4-15-205 without change effective October 8, 1982 (Supp. 82-5). R19-1-205 recodified from R4-15-205 (Supp. 95-1). Former Section R19-1-205 recodified to R19-1-211 ; new Section R19-1-205 recodified from R19-1-253 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section expired under A.R.S. § 41-1056(E) at 12 A.A.R. 1784, effective January 31, 2006 (Supp. 06-2). New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).
• The following Section was repealed and a new Section adopted under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6), pursuant to Laws 1993, Ch. 133, § 49. Exemption from A.R.S. Title 41, Chapter 6 means that the Department did not submit notice of this rulemaking to the Secretary of State's Office for publication in the Arizona Administrative Register; the Department did not submit these rules to the Governor's Regulatory Review Council; the Department was not required to hold public hearings on these rules; and the Attorney General did not certify these rules.

Ariz. Admin. Code § R19-1-206 Criteria for Issuing a Restaurant License

A. The Department shall not issue a restaurant license to an applicant if the Department finds there is sufficient evidence that the applicant will be unable to operate as a restaurant as defined in A.R.S. § 4-205.02(M)(2).

B. The following criteria are evidence of an ability to operate a restaurant as defined in A.R.S. § 4-205.02(M)(2). The Department shall consider these criteria when determining whether to issue a restaurant license to an applicant:

1. Number of cooks, other food preparation personnel, and wait staff are sufficient to prepare and provide the proposed restaurant services;

2. Restaurant equipment is of sufficient grade or appropriate for the offered menu;

3. Proposed menu is of a type and price likely to achieve 40 percent food sales; and

4. Dinnerware and small-ware, including dining utensils, are compatible with the offered menu.

C. The following criteria are evidence of an inability to operate a restaurant as defined in A.R.S. § 4-205.02(M)(2). The Department shall consider these criteria when determining whether to issue a restaurant license to an applicant:

1. More than 60 percent of the public seating area consists of barstools, cocktail tables, and similar seating indicating the area is used primarily for consumption of spirituous liquor;

2. Name, signage, or promotional materials of the proposed business premises contain a term such as bar, tavern, pub, spirits, club, lounge, cabaret, or saloon that denotes sale of spirituous liquor;

3. Proposed business premises has a jukebox, live entertainment, or dance floor; and

4. Proposed business premises contain bar games and equipment.

D. This Section is authorized by A.R.S. § 4-205.02(E).

History

• Former Rule 6; Former Section R4-15-25 renumbered as Section R4-15-206 without change effective October 8, 1982 (Supp. 82-5). Section repealed, new Section adopted effective May 26, 1993, under an exemption from A.R.S. Title 41, Chapter 6, pursuant to Laws 1993, Ch. 133, § 49 (Supp. 93-2). R19-1-206 recodified from R4-15-206 (Supp. 95-1). Former Section R19-1-206 recodified to R19-1-221 ; new Section R19-1-206 recodified from R19-1-217 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2). New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2). Amended by final expedited rulemaking at 30 A.A.R. 389, effective 2/9/2024.
• The following Section was repealed under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1996, Ch. 307 § 18. Although exempt from certain provisions of the rulemaking process, the Department was required to provide for reasonable notice and hearing. This Section was not reviewed by the Governor's Regulatory Review Council; and the Department did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register (Supp. 97-2). Previous amendments were made under a different exemption (Supp. 96-4).

Ariz. Admin. Code § R19-1-207 Extension of Premises

A. A licensee shall ensure that no spirituous liquor is served to a customer seated outside the licensed premises, as defined in A.R.S. § 4-101(31), without first making application for an extension of premises.

B. An application under subsection (A) is required for either a temporary or permanent extension of premises.

C. This Section is authorized by A.R.S. § 4-101(31) and 4-203(B).

History

• Former Rule 7; Former Section R4-15-26 renumbered as Section R4-15-207 without change effective October 8, 1982 (Supp. 82-5). R19-1-207 recodified from R4-15-207 (Supp. 95-1). Amended effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). Repealed effective June 4, 1997, under an exemption from certain provisions of the Administrative Procedure Act pursuant to Laws 1996, Ch. 307, § 18 (Supp. 97-2). New Section R19-1-207 recodified from R19-1-221 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2). New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2). Amended by final expedited rulemaking at 30 A.A.R. 389, effective 2/9/2024.
• The following Section was amended under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1996, Ch. 307 § 18. Although exempt from certain provisions of the rulemaking process, the Department was required to provide for reasonable notice and hearing. This Section was not reviewed by the Governor's Regulatory Review Council; and the Department did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register (Supp. 97-2). Previous amendments were made under a different exemption (Supp. 96-4).

Ariz. Admin. Code § R19-1-208 Notice of Application for a Conveyance License

A. An individual or entity qualified under R19-1-201 who submits an application under R19-1-202 for a conveyance license shall post a copy of the application and the notice required under A.R.S. § 4-201(B) conspicuously at the location from which the applicant conducts its principal business in Arizona.

B. This Section is authorized by A.R.S. § 4-201(B).

History

• Former Rule 8; Former Section R4-15-27 renumbered as Section R4-15-208 without change effective October 8, 1982 (Supp. 82-5). R19-1-208 recodified from R4-15-208 (Supp. 95-1). Amended effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996, as required pursuant to Laws 1996, Ch. 307, § 19 (Supp. 96-4). Historical note corrected for clarification. Amended effective June 4, 1997, under an exemption from certain provisions of the Administrative Procedure Act pursuant to Laws 1996, Ch. 307, § 18 (Supp. 97-2). Former Section R19-1-208 recodified to R19-1-219 ; new Section R19-1-208 recodified from R19-1-231 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2). New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).
• The following Section was amended under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1989, Ch. 234, § 22. The Office of the Secretary of State was not allowed by law to file or publish exempt rules when the Section was amended by the Department. The Department has now filed this Section with the Office of the Secretary of State as required pursuant to Laws 1996, Ch. 307, § 19.

Ariz. Admin. Code § R19-1-209 Licensing Time Frames

A. For the purpose of compliance with A.R.S. § 41-1073, the Department establishes time frames that apply to licenses issued by the Department. The licensing time frames consist of an administrative completeness review time frame, a substantive review time frame, and an overall time frame as defined in A.R.S. § 41-1072.

B. The Department shall not forward a liquor license application for review and consideration by local governing authorities until the application is administratively complete. A liquor license application is administratively complete when:

1. Every piece of information required by the form prescribed by the Department is provided;

2. All required materials specified on the form prescribed by the Department are attached to the form;

3. The non-refundable license application fee specified at A.R.S. § 4-209(A) is attached to the form; and

4. If required, a questionnaire and complete set of fingerprints are attached to the form from:

a. Every individual who is a controlling person of the business to be licensed,

b. Every individual who has an aggregate beneficial interest of at least 10 percent in the business to be licensed,

c. Every individual who owns at least 10 percent of the business to be licensed,

d. Every individual who holds a beneficial interest of at least 10 percent of the liabilities of the business to be licensed, and

e. The agent and managers of the business to be licensed.

C. Except as provided in subsection (D), the time frame for the Department to act on a license application is as follows:

1. Administrative completeness review time frame: 75 days;

2. Substantive review time frame: 30 days; and

Over-all time frame: 105 days.

D. The time frame for the Department to act on an application for a special event license, wine festival or fair license, extension or change of licensed premises, or approval of a liquor law training course is as follows:

1. Administrative completeness review time frame: 10 days;

2. Substantive review time frame: 20 days; and

3. Over-all time frame: 30 days.

E. Administrative completeness review time frame.

1. The administrative completeness review time frame begins when the Department receives an application. During the administrative completeness review-time frame, the Department shall determine whether the application is:

a. Complete,

b. Contains a technical error, or

c. Contains a non-technical error.

2. If the Department determines that an application is incomplete or contains a non-technical error, the Department shall return the application to the applicant. If the applicant wishes to be considered further for a license, the applicant shall submit to the Department a new, completed application and non-refundable application fee.

3. If the Department determines that an application contains a technical error, the Department shall notify the applicant in writing of the technical error.

4. An applicant that receives a notice regarding a technical error in an application shall correct the technical error within 30 days from the date of the notice or within the time specified by the Department. The administrative completeness review and over-all time frames are suspended from the date of the notice referenced under subsection (E)(3) until the date the technical error is corrected.

5. If an applicant fails to correct a technical error within the specified time, the Department shall close the file. An applicant whose file is closed may apply again for a license by submitting a new, completed application and non-refundable application fee.

F. Substantive review time frame.

1. The substantive review time frame begins when an application is administratively complete or at the end of the administrative completeness review time frame listed in subsection (C)(1) or (D)(1). If a hearing is required under A.R.S. § 4-201 regarding the license application, the Department shall ensure that the hearing occurs during the substantive review time frame.

2. If the Department determines during the substantive review that additional information is needed, the Department shall send the applicant a comprehensive written request for additional information. An applicant from whom additional information is requested shall supply the additional information within 30 days from the date of the request or within the time specified by the Department. Both the substantive review and over-all time frames are suspended from the date of the Department's request until the date that the Department receives the additional information.

3. If an applicant fails to submit the requested information within the specified time, the Department shall close the file. An applicant whose file is closed may apply again for a license by submitting a new, completed application and non-refundable application fee.

G. Within the overall time frame, the Department shall:

Deny a license to an applicant if the Department determines that the applicant does not meet all the substantive criteria required by A.R.S. Title 4 and this Chapter, or

2. Grant a license to an applicant if the Department determines that the applicant meets all the substantive criteria required by A.R.S. Title 4 and this Chapter.

H. If the Department denies a license under subsection (G)(1), the Department shall provide a written notice of denial to the applicant that explains:

The reason for the denial, with citations to supporting statutes or rules;

2. The applicant's right to appeal the denial; and

3. The time for appealing the denial.

I. This Section is authorized by A.R.S. §§ 41-1073, 4-201(E), and 4-202(B).

History

• Former Rule 9; Former Section R4-15-28 renumbered as Section R4-15-209 without change effective October 8, 1982 (Supp. 82-5). R19-1-209 recodified from R4-15-209 (Supp. 95-1). Amended effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). Former Section R19-1-209 recodified to R19-1-232 ; new Section R19-1-209 recodified from R19-1-210 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2). New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2). Amended by final expedited rulemaking at 30 A.A.R. 389, effective 2/9/2024.

Ariz. Admin. Code § R19-1-210 Renumbered

History

• Former Rule 10; Former Section R4-15-29 renumbered as Section R4-15-210 without change effective October 8, 1982 (Supp. 82-5). R19-1-210 recodified from R4-15-210 (Supp. 95-1). Former Section R19-1-210 recodified to R19-1-209 ; new Section R19-1-210 recodified from R19-1-204 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section renumbered to R19-1-110 by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).
• The following Section was amended under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1996, Ch. 307 § 18. Although exempt from certain provisions of the rulemaking process, the Department was required to provide for reasonable notice and hearing. This Section was not reviewed by the Governor's Regulatory Review Council; and the Department did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register (Supp. 97-2). Previous amendments were made under a different exemption (Supp. 96-4).

Ariz. Admin. Code § R19-1-211 [REPEALED]

History

• Former Rule 11; Former Section R4-15-30 renumbered as Section R4-15-211 without change effective October 8, 1982 (Supp. 82-5). R19-1-211 recodified from R4-15-211 (Supp. 95-1). Amended effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). Amended effective June 4, 1997, under an exemption from certain provisions of the Administrative Procedure Act pursuant to Laws 1996, Ch. 307, § 18 (Supp. 97-2). Former Section R19-1-211 recodified to R19-1-224 ; new Section R19-1-211 recodified from R19-1-205 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2).
• The following Section was repealed under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1996, Ch. 307 § 18. Although exempt from certain provisions of the rulemaking process, the Department was required to provide for reasonable notice and hearing. This Section was not reviewed by the Governor's Regulatory Review Council; and the Department did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register (Supp. 97-2).

Ariz. Admin. Code § R19-1-212 [REPEALED]

History

• Former Rule 12; Former Section R4-15-31 renumbered as Section R4-15-212 without change effective October 8, 1982 (Supp. 82-5). R19-1-212 recodified from R4-15-212 (Supp. 95-1). Repealed effective June 4, 1997, under an exemption from certain provisions of the Administrative Procedure Act pursuant to Laws 1996, Ch. 307, § 18 (Supp. 97-2). New Section R19-1-212 recodified from R19-1-228 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2).
• The following Section was amended under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1996, Ch. 307 § 18. Although exempt from certain provisions of the rulemaking process, the Department was required to provide for reasonable notice and hearing. This Section was not reviewed by the Governor's Regulatory Review Council; and the Department did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register (Supp. 97-2). Previous amendments were made under a different exemption (Supp. 96-4).

Ariz. Admin. Code § R19-1-213 [REPEALED]

History

• Former Rule 13; Former Section R4-15-32 renumbered as Section R4-15-213 without change effective October 8, 1982 (Supp. 82-5). R19-1-213 recodified from R4-15-213 (Supp. 95-1). Amended effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). Amended effective June 4, 1997; amended again effective June 10, 1997. Both amendments were made under an exemption from certain provisions of the Administrative Procedure Act pursuant to Laws 1996, Ch. 307, § 18 (Supp. 97-2). Former Section R19-1-213 recodified to R19-1-234 ; new Section R19-1-213 recodified from R19-1-235 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 11 A.A.R. 1564, effective June 4, 2005 (Supp. 05-2). Editor's Note: The following Section was repealed and a new Section adopted under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1991, Ch. 136, § 2 and 3. The Office of the Secretary of State was not allowed by law to file or publish exempt rules when the Section was repealed and new Section adopted by the Department. The Department has now filed this Section with the Office of the Secretary of State as required pursuant to Laws 1996, Ch. 307, § 19.

Ariz. Admin. Code § R19-1-214 [REPEALED]

History

• Former Rule 14; Former Section R4-15-33 renumbered as Section R4-15-214 without change effective October 8, 1982 (Supp. 82-5). Former Section R4-15-214 repealed, new Section R4-15-214 adopted effective April 26, 1984 (Supp. 84-2). R19-1-214 recodified from R4-15-214 (Supp. 95-1). Section repealed, new Section adopted effective April 1, 1992, under an exemption from the Administrative Procedure Act pursuant to Laws 1991, Ch. 136, §§ 2 and 3; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). Former Section R19-1-214 recodified to R19-1-235 ; new Section R19-1-214 recodified from R19-1-236 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed; new Section made by final rulemaking at 11 A.A.R. 1564, effective June 4, 2005 (Supp. 05-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2).
• The following Section was amended under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1989, Ch. 234, § 22. The Office of the Secretary of State was not allowed by law to file or publish exempt rules when the Section was amended by the Department. The Department has now filed this Section with the Office of the Secretary of State as required pursuant to Laws 1996, Ch. 307, § 19.

Ariz. Admin. Code § R19-1-215 [REPEALED]

History

• Former Rule 15; Former Section R4-15-34 renumbered as Section R4-15-215 without change effective October 8, 1982 (Supp. 82-5). R19-1-215 recodified from R4-15-215 (Supp. 95-1). Amended effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). Former Section R19-1-215 recodified to R19-1-225 ; new Section R19-1-215 recodified from R19-1-237 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2).
• The following Section was amended under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1989, Ch. 234, § 22. The Office of the Secretary of State was not allowed by law to file or publish exempt rules when the Section was amended by the Department. The Department has now filed this Section with the Office of the Secretary of State as required pursuant to Laws 1996, Ch. 307, § 19.

Ariz. Admin. Code § R19-1-216 [REPEALED]

History

• Former Rule 16; Former Section R4-15-35 renumbered as Section R4-15-216 without change effective October 8, 1982 (Supp. 82-5). R19-1-216 recodified from R4-15-216 (Supp. 95-1). Amended effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). Former Section R19-1-216 recodified to R19-1-222 ; new Section R19-1-216 recodified from R19-1-255 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2).
• The following Section was amended under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1989, Ch. 234, § 22. The Office of the Secretary of State was not allowed by law to file or publish exempt rules when the Section was amended by the Department. The Department has now filed this Section with the Office of the Secretary of State as required pursuant to Laws 1996, Ch. 307, § 19.

Ariz. Admin. Code § R19-1-217 [REPEALED]

History

• Former Rule 17; Former Section R4-15-36 renumbered as Section R4-15-217 without change effective October 8, 1982 (Supp. 82-5). R19-1-217 recodified from R4-15-217 (Supp. 95-1). Amended effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). Former Section R19-1-217 recodified to R19-1-206 ; new Section R19-1-217 recodified from R19-1-248 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2).
• The following Section was amended under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1996, Ch. 307 § 18. Although exempt from certain provisions of the rulemaking process, the Department was required to provide for reasonable notice and hearing. This Section was not reviewed by the Governor's Regulatory Review Council; and the Department did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register (Supp. 97-2). Previous amendments were made under a different exemption (Supp. 96-4).

Ariz. Admin. Code § R19-1-218 [REPEALED]

History

• Former Rule 18; Former Section R4-15-37 renumbered as Section R4-15-218 without change effective October 8, 1982 (Supp. 82-5). R19-1-218 recodified from R4-15-218 (Supp. 95-1). Amended effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). Amended effective June 4, 1997, under an exemption from certain provisions of the Administrative Procedure Act pursuant to Laws 1996, Ch. 307, § 18 (Supp. 97-2). Former Section R19-1-218 recodified to R19-1-305 ; new Section R19-1-218 recodified from R19-1-222 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2).
• The following Section was amended under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1996, Ch. 307 § 18. Although exempt from certain provisions of the rulemaking process, the Department was required to provide for reasonable notice and hearing. This Section was not reviewed by the Governor's Regulatory Review Council; and the Department did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register (Supp. 97-2). Previous amendments were made under a different exemption (Supp. 96-4).

Ariz. Admin. Code § R19-1-219 [REPEALED]

History

• Former Rule 19; Former Section R4-15-38 renumbered as Section R4-15-219 without change effective October 8, 1982 (Supp. 82-5). R19-1-219 recodified from R4-15-219 (Supp. 95-1). Amended effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). Amended effective June 4, 1997, under an exemption from certain provisions of the Administrative Procedure Act pursuant to Laws 1996, Ch. 307, § 18 (Supp. 97-2). Former Section R19-1-219 recodified to R19-1-306 ; new Section R19-1-219 recodified from R19-1-208 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2).
• The following Section was amended under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1996, Ch. 307 § 18. Although exempt from certain provisions of the rulemaking process, the Department was required to provide for reasonable notice and hearing. This Section was not reviewed by the Governor's Regulatory Review Council; and the Department did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register (Supp. 97-2). Previous amendments were made under a different exemption (Supp. 96-4).

Ariz. Admin. Code § R19-1-220 [REPEALED]

History

• Former Rule 20; Former Section R4-15-39 renumbered as Section R4-15-220 effective October 8, 1982 (Supp. 82-5). R19-1-220 recodified from R4-15-220 (Supp. 95-1). Amended effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). Amended effective June 4, 1997; amended again effective June 10, 1997. Both amendments were exempt from certain provisions of the Administrative Procedure Act pursuant to Laws 1996, Ch. 307, § 18 (Supp. 97-2). Former Section R19-1-220 recodified to R19-1-204 ; new Section R19-1-220 recodified from R19-1-229 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2).
• The following Section was amended under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1989, Ch. 234, § 22. The Office of the Secretary of State was not allowed by law to file or publish exempt rules when the Section was amended by the Department. The Department has now filed this Section with the Office of the Secretary of State as required pursuant to Laws 1996, Ch. 307, § 19.

Ariz. Admin. Code § R19-1-221 [REPEALED]

History

• Former Rule 21; Former Section R4-15-40 renumbered as Section R4-15-221 without change effective October 8, 1982 (Supp. 82-5). R19-1-221 recodified from R4-15-221 (Supp. 95-1). Amended effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). Former Section R19-1-221 recodified to R19-1-207 ; new Section R19-1-221 recodified from R19-1-206 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2).
• The following Section was amended under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1996, Ch. 307 § 18. Although exempt from certain provisions of the rulemaking process, the Department was required to provide for reasonable notice and hearing. This Section was not reviewed by the Governor's Regulatory Review Council; and the Department did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register (Supp. 97-2). Previous amendments were made under a different exemption (Supp. 96-4).

Ariz. Admin. Code § R19-1-222 [REPEALED]

History

• Former Rule 22; Former Section R4-15-41 renumbered as Section R4-15-222 without change effective October 8, 1982 (Supp. 82-5). R 19-1-222 recodified from R4-15-222 (Supp. 95-1). Amended effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). Amended effective June 4, 1997, under an exemption from certain provisions of the Administrative Procedure Act pursuant to Laws 1996, Ch. 307, § 18 (Supp. 97-2). Former Section R19-1-222 recodified to R19-1-218 ; new Section R19-1-222 recodified from R19-1-216 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2).
• The following Section was repealed and a new Section adopted under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1989, Ch. 234, § 22. The Office of the Secretary of State was not allowed by law to file or publish exempt rules when the Section was repealed and a new Section adopted by the Department. The Department has now filed this Section with the Office of the Secretary of State as required pursuant to Laws 1996, Ch. 307, § 19.

Ariz. Admin. Code § R19-1-223 [REPEALED]

History

• Former Rule 23; Former Section R4-15-42 renumbered as Section R4-15-223 without change effective October 8, 1982 (Supp. 82-5). R19-1-223 recodified from R4-15-223 (Supp. 95-1). Section repealed, new Section adopted effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). Former Section R19-1-223 recodified to R19-1-312 ; new Section R19-1-223 recodified from R19-1-226 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2).
• The following Section was repealed under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1989, Ch. 234, § 22. The Office of the Secretary of State was not allowed by law to file or publish exempt rules when the Section was repealed by the Department. The Department has now filed this Section with the Office of the Secretary of State as required pursuant to Laws 1996, Ch. 307, § 19.

Ariz. Admin. Code § R19-1-224 [REPEALED]

History

• Former Rule 24; Former Section R4-15-43 renumbered as Section R4-15-224 without change effective October 8, 1982 (Supp. 82-5). R-19-1-224 recodified from R4-15-224 (Supp. 95-1). Repealed effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). New Section R19-1-224 recodified from R19-1-211 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2).
• The following Section was amended under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1996, Ch. 307 § 18. Although exempt from certain provisions of the rulemaking process, the Department was required to provide for reasonable notice and hearing. This Section was not reviewed by the Governor's Regulatory Review Council; and the Department did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register (Supp. 97-2). Previous amendments were made under a different exemption (Supp. 96-4).

Ariz. Admin. Code § R19-1-225 [REPEALED]

History

• Former Rule 25; Former Section R4-15-44 renumbered as Section R4-15-225 without change effective October 8, 1982 (Supp. 82-5). R19-1-225 recodified from R4-15-225 (Supp. 95-1). Amended effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). Amended effective June 4, 1997, under an exemption from certain provisions of the Administrative Procedure Act pursuant to Laws 1996, Ch. 307, § 18 (Supp. 97-2). Former Section R19-1-225 recodified to R19-1-307 ; new Section R19-1-225 recodified from R19-1-215 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2).
• The following Section was amended under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1996, Ch. 307 § 18. Although exempt from certain provisions of the rulemaking process, the Department was required to provide for reasonable notice and hearing. This Section was not reviewed by the Governor's Regulatory Review Council; and the Department did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register (Supp. 97-2).

Ariz. Admin. Code § R19-1-226 [REPEALED]

History

• Former Rule 26; Former Section R4-15-45 renumbered as Section R4-15-226 without change effective October 8, 1982 (Supp. 82-5). R19-1-226 recodified from R4-15-226 (Supp. 95-1). Amended effective June 4, 1997, under an exemption from certain provisions of the Administrative Procedure Act pursuant to Laws 1996, Ch. 307, § 18 (Supp. 97-2). Former Section R19-1-226 recodified to R19-1-223 ; new Section R19-1-226 recodified from R19-1-245 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2).
• The following Section was repealed under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1989, Ch. 234, § 22. The Office of the Secretary of State was not allowed by law to file or publish exempt rules when the Section was repealed by the Department. The Department has now filed this Section with the Office of the Secretary of State as required pursuant to Laws 1996, Ch. 307, § 19.

Ariz. Admin. Code § R19-1-227 [REPEALED]

History

• Former Rule 27; Former Section R4-15-46 renumbered as Section R4-15-227 without change effective October 8, 1982 (Supp. 82-5). R19-1-227 recodified from R4-15-227 (Supp. 95-1). Repealed effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). New Section R19-1-227 recodified from R19-1-254 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2).
• The following Section was amended under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1989, Ch. 234, § 22. The Office of the Secretary of State was not allowed by law to file or publish exempt rules when the Section was amended by the Department. The Department has now filed this Section with the Office of the Secretary of State as required pursuant to Laws 1996, Ch. 307, § 19.

Ariz. Admin. Code § R19-1-228 Renumbered

History

• Former Rule 28; Former Section R4-15-47 renumbered as Section R4-15-228 without change effective October 8, 1982 (Supp. 82-5). R19-1-228 recodified from R4-15-228 (Supp. 95-1). Amended effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). Former Section R19-1-228 recodified to R19-1-212 ; new Section R19-1-228 recodified from R19-1-250 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section renumbered to R19-1-112 by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-1-229 [REPEALED]

History

• Former Rule 29; Former Section R4-15-48 renumbered as Section R4-15-229 without change effective October 8, 1982 (Supp. 82-5). R-19-1-229 recodified from R4-15-229 (Supp. 95-1). Former Section R19-1-229 recodified to R19-1-220 ; new Section R19-1-229 recodified from R19-1-247 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2).
• The following Section was repealed under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1996, Ch. 307 § 18. Although exempt from certain provisions of the rulemaking process, the Department was required to provide for reasonable notice and hearing. This Section was not reviewed by the Governor's Regulatory Review Council; and the Department did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register (Supp. 97-2).

Ariz. Admin. Code § R19-1-230 [REPEALED]

History

• Former Rule 30; Former Section R4-15-49 renumbered as Section R4-15-230 without change effective October 8, 1982 (Supp. 82-5). R19-1-230 recodified from R4-15-230 (Supp. 95-1). Repealed effective June 4, 1997, under an exemption from certain provisions of the Administrative Procedure Act pursuant to Laws 1996, Ch. 307, § 18 (Supp. 97-2). New Section R19-1-230 recodified from R19-1-241 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2).
• The following Section was amended under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1989, Ch. 234, § 22. The Office of the Secretary of State was not allowed by law to file or publish exempt rules when the Section was amended by the Department. The Department has now filed this Section with the Office of the Secretary of State as required pursuant to Laws 1996, Ch. 307, § 19.

Ariz. Admin. Code § R19-1-231 [REPEALED]

History

• Former Rule 31; Former Section R4-15-50 renumbered as Section R4-15-231 without change effective October 8, 1982 (Supp. 82-5). R19-1-231 recodified from R4-15-231 (Supp. 95-1). Amended effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). Former Section R19-1-231 recodified to R19-1-208 ; new Section R19-1-231 recodified from R19-1-246 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2).
• The following Section was repealed under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1989, Ch. 234, § 22. The Office of the Secretary of State was not allowed by law to file or publish exempt rules when the Section was repealed by the Department. The Department has now filed this Section with the Office of the Secretary of State as required pursuant to Laws 1996, Ch. 307, § 19.

Ariz. Admin. Code § R19-1-232 [REPEALED]

History

• Former Rule 32; Former Section R4-15-51 renumbered as Section R4-15-232 without change effective October 8, 1982 (Supp. 82-5). R19-1-232 recodified from R4-15-231 (Supp. 95-1). Repealed effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). New Section R19-1-232 recodified from R19-1-209 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2).
• The following Section was amended under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1989, Ch. 234, § 22. The Office of the Secretary of State was not allowed by law to file or publish exempt rules when the Section was amended by the Department. The Department has now filed this Section with the Office of the Secretary of State as required pursuant to Laws 1996, Ch. 307, § 19.

Ariz. Admin. Code § R19-1-233 [REPEALED]

History

• Former Rule 33; Former Section R4-15-52 renumbered as Section R4-15-233 without change effective October 8, 1982 (Supp. 82-5). R19-1-233 recodified from R4-15-233 (Supp. 95-1). Amended effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). Former Section R19-1-233 recodified to R19-1-311 ; new Section R19-1-233 recodified from R19-1-305 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2).
• The following Section was repealed under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1989, Ch. 234, § 22. The Office of the Secretary of State was not allowed by law to file or publish exempt rules when the Section was repealed by the Department. The Department has now filed this Section with the Office of the Secretary of State as required pursuant to Laws 1996, Ch. 307, § 19.

Ariz. Admin. Code § R19-1-234 [REPEALED]

History

• Former Rule 34; Former Section R4-15-53 renumbered as Section R4-15-234 without change effective October 8, 1982 (Supp. 82-5). R19-1-234 recodified from R4-15-234 (Supp. 95-1). Repealed effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). New Section R19-1-234 recodified from R19-1-213 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2).
• The following Section was amended under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1989, Ch. 234, § 22. The Office of the Secretary of State was not allowed by law to file or publish exempt rules when the Section was amended by the Department. The Department has now filed this Section with the Office of the Secretary of State as required pursuant to Laws 1996, Ch. 307, § 19.

Ariz. Admin. Code § R19-1-235 [REPEALED]

History

• Former Rule 35; Former Section R4-15-54 renumbered as Section R4-15-235 without change effective October 8, 1982 (Supp. 82-5). R19-1-235 recodified from R4-15-235 (Supp. 95-1). Amended effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). Former Section R19-1-235 recodified to R19-1-213 ; new Section R19-1-235 recodified from R19-1-214 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2).
• The following Section was amended under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1989, Ch. 234, § 22. The Office of the Secretary of State was not allowed by law to file or publish exempt rules when the Section was amended by the Department. The Department has now filed this Section with the Office of the Secretary of State as required pursuant to Laws 1996, Ch. 307, § 19.

Ariz. Admin. Code § R19-1-236 Recodified

History

• Former Rule 36; Former Section R4-15-55 renumbered as Section R4-15-236 without change effective October 8, 1982 (Supp. 82-5). R19-1-236 recodified from R4-15-236 (Supp. 95-1). Amended effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). Section R19-1-236 recodified to R19-1-214 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2).
• The following Section was amended under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1989, Ch. 234, § 22. The Office of the Secretary of State was not allowed by law to file or publish exempt rules when the Section was amended by the Department. The Department has now filed this Section with the Office of the Secretary of State as required pursuant to Laws 1996, Ch. 307, § 19.

Ariz. Admin. Code § R19-1-237 Recodified

History

• Former Rule 37; Former Section R4-15-56 renumbered as Section R4-15-237 without change effective October 8, 1982 (Supp. 82-5). R19-1-237 recodified from R4-15-237 (Supp. 95-1). Amended effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). Section R19-1-237 recodified to R19-1-215 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2).
• The following Section was repealed under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1989, Ch. 234, § 22. The Office of the Secretary of State was not allowed by law to file or publish exempt rules when the Section was repealed by the Department. The Department has now filed this Section with the Office of the Secretary of State as required pursuant to Laws 1996, Ch. 307, § 19.

Ariz. Admin. Code § R19-1-238 [REPEALED]

History

• Former Rule 38; Former Section R4-15-57 renumbered as Section R4-15-238 without change effective October 8, 1982 (Supp. 82-5). R19-1-238 recodified from R4-15-238 (Supp. 95-1). Repealed effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4).
• The following Section was amended under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1996, Ch. 307 § 18. Although exempt from certain provisions of the rulemaking process, the Department was required to provide for reasonable notice and hearing. This Section was not reviewed by the Governor's Regulatory Review Council; and the Department did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register (Supp. 97-2). Previous amendments were made under a different exemption (Supp. 96-4).

Ariz. Admin. Code § R19-1-239 Recodified

History

• Former Section R4-15-58 renumbered as Section R4-15-239 without change effective October 8, 1982 (Supp. 82-5). R19-1-239 recodified from R4-15-239 (Supp. 95-1). Amended effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). Amended effective June 4, 1997, under an exemption from certain provisions of the Administrative Procedure Act pursuant to Laws 1996, Ch. 307, § 18 (Supp. 97-2). Section R19-1-239 recodified to R19-1-302 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2).
• The following Section was adopted under an exemption from the provisions of the Administrative Procedure Act. Exemption from this Act means that the rule was not reviewed by the Governor's Regulatory Review Council; the rule not submitted to the Secretary of State's Office for publication as a proposed rule in the Arizona Administrative Register; the public did not have an opportunity to comment on the rule; and the rule was not certified by the Attorney General.

Ariz. Admin. Code § R19-1-240 Recodified

History

• Adopted effective October 11, 1977 (Supp. 77-5). Repealed effective January 5, 1979 (Supp. 79-1). Former Section R4-15-59 renumbered as Section R4-15-240 effective October 8, 1982 (Supp. 82-5). Amended effective August 3, 1994, under an exemption from the Administrative Procedure Act (Supp. 94-3). R19-1-240 recodified from R4-15-240 (Supp. 95-1). Section R19-1-240 recodified to R19-1-310 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2).
• The following Section was amended under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1989, Ch. 234, § 22. The Office of the Secretary of State was not allowed by law to file or publish exempt rules when the Section was amended by the Department. The Department has now filed this Section with the Office of the Secretary of State as required pursuant to Laws 1996, Ch. 307, § 19.

Ariz. Admin. Code § R19-1-241 Recodified

History

• Adopted effective October 8, 1982 (Supp. 82-5). R19-1-241 recodified from R4-15-241 (Supp. 95-1). Amended effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). Section R19-1-241 recodified to R19-1-230 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2).
• The following Section was amended under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1996, Ch. 307 § 18. Although exempt from certain provisions of the rulemaking process, the Department was required to provide for reasonable notice and hearing. This Section was not reviewed by the Governor's Regulatory Review Council; and the Department did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register (Supp. 97-2). Previous amendments were made under a different exemption (Supp. 96-4).

Ariz. Admin. Code § R19-1-242 Recodified

History

• Adopted effective April 9, 1979; Amended effective April 10, 1979 (Supp. 79-2). Former Section R4-15-61 renumbered as Section R4-15-242 without change effective October 8, 1982 (Supp. 82-5). R19-1-242 recodified from R4-15-242 (Supp. 95-1). Amended effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). Amended effective June 4, 1997, under an exemption from certain provisions of the Administrative Procedure Act pursuant to Laws 1996, Ch. 307, § 18 (Supp. 97-2). Section R19-1-242 recodified to R19-1-303 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2).
• The following Section was amended under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1996, Ch. 307 § 18. Although exempt from certain provisions of the rulemaking process, the Department was required to provide for reasonable notice and hearing. This Section was not reviewed by the Governor's Regulatory Review Council; and the Department did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register (Supp. 97-2). Previous amendments were made under a different exemption (Supp. 96-4).

Ariz. Admin. Code § R19-1-243 Recodified

History

• Adopted effective Aug. 2. 1982 (Supp. 82-4). Former Section R4-15-62 renumbered as Section R4-15-243 without change effective October 8, 1982 (Supp. 82-5). Correction, (A)(3)(a) (Supp. 83-3). R19-1-243 recodified from R4-15-243 (Supp. 95-1). Amended effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). Amended effective June 4, 1997, under an exemption from certain provisions of the Administrative Procedure Act pursuant to Laws 1996, Ch. 307, § 18 (Supp. 97-2). Section R19-1-243 recodified to R19-1-308 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2).
• The following Section was amended under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1996, Ch. 307 § 18. Although exempt from certain provisions of the rulemaking process, the Department was required to provide for reasonable notice and hearing. This Section was not reviewed by the Governor's Regulatory Review Council; and the Department did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register (Supp. 97-2). Previous amendments were made under a different exemption (Supp. 96-4).

Ariz. Admin. Code § R19-1-244 Recodified

History

• Adopted effective March 31, 1981 (Supp. 81-2). Former Section R4-15-63 renumbered as Section R4-15-2 without change effective October 9, 1982 (Supp. 82-5). R19-1-244 recodified from R4-15-244 (Supp. 95-1). Amended effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). Amended effective June 4, 1997, under an exemption from certain provisions of the Administrative Procedure Act pursuant to Laws 1996, Ch. 307, § 18 (Supp. 97-2). Section R19-1-244 recodified to R19-1-309 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2).
• The following Section was amended under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1996, Ch. 307 § 18. Although exempt from certain provisions of the rulemaking process, the Department was required to provide for reasonable notice and hearing. This Section was not reviewed by the Governor's Regulatory Review Council; and the Department did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register (Supp. 97-2). Previous amendments were made under a different exemption (Supp. 96-4).

Ariz. Admin. Code § R19-1-245 Recodified

History

• Adopted effective January 29, 1982 (Supp. 82-1). Former Section R4-15-64 renumbered and amended subsection (A), paragraph (1) effective October 8, 1982 (Supp. 82-5). Correction, (A)(1) and (4) (Supp. 83-3). R19-1-245 recodified from R4-15-245 (Supp. 95-1). Amended effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). Amended effective June 4, 1997, under an exemption from certain provisions of the Administrative Procedure Act pursuant to Laws 1996, Ch. 307, § 18 (Supp. 97-2). Section R19-1-245 recodified to R19-1-226 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2).
• The following Section was repealed and a new Section adopted under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1989, Ch. 234, § 22. The Office of the Secretary of State was not allowed by law to file or publish exempt rules when the Section was repealed and a new Section adopted by the Department. The Department has now filed this Section with the Office of the Secretary of State as required pursuant to Laws 1996, Ch. 307, § 19.

Ariz. Admin. Code § R19-1-246 Recodified

History

• Adopted as an emergency effective Feb. 8, 1985 pursuant to A.R.S. SS 41-1003, valid for only 90 days (Supp. 85- 1). Emergency expired. Adopted as a permanent rule effective Aug. 6, 1985 (Supp. 85-4). R19-1-246 recodified from R4-15-246 (Supp. 95-1). Section repealed, new Section adopted effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). Section R19-1-246 recodified to R19-1-231 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2).
• The following Section was adopted under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1989, Ch. 234, § 22. The Office of the Secretary of State was not allowed by law to file or publish exempt rules when the Section was adopted by the Department. The Department has now filed this Section with the Office of the Secretary of State as required pursuant to Laws 1996, Ch. 307, § 19.

Ariz. Admin. Code § R19-1-247 Recodified

History

• Adopted effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). Section R19-1-247 recodified to R19-1-229 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2).
• The following Section was adopted under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1989, Ch. 234, § 22. The Office of the Secretary of State was not allowed by law to file or publish exempt rules when the Section was adopted by the Department. The Department has now filed this Section with the Office of the Secretary of State as required pursuant to Laws 1996, Ch. 307, § 19.

Ariz. Admin. Code § R19-1-248 Recodified

History

• Adopted effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). Section R19-1-248 recodified to R19-1-217 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2).
• The following Section was repealed under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1996, Ch. 307 § 18. Although exempt from certain provisions of the rulemaking process, the Department was required to provide for reasonable notice and hearing. This Section was not reviewed by the Governor's Regulatory Review Council; and the Department did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register (Supp. 97-2). Previous amendments were made under a different exemption (Supp. 96-4).

Ariz. Admin. Code § R19-1-249 [REPEALED]

History

• Adopted effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). Repealed effective June 4, 1997, under an exemption from certain provisions of the Administrative Procedure Act pursuant to Laws 1996, Ch. 307, § 18 (Supp. 97-2).
• The following Section was amended under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1996, Ch. 307 § 18. Although exempt from certain provisions of the rulemaking process, the Department was required to provide for reasonable notice and hearing. This Section was not reviewed by the Governor's Regulatory Review Council; and the Department did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register (Supp. 97-2). Previous amendments were made under a different exemption (Supp. 96-4).

Ariz. Admin. Code § R19-1-250 Recodified

History

• Adopted effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). Amended effective June 4, 1997, under an exemption from certain provisions of the Administrative Procedure Act pursuant to Laws 1996, Ch. 307, § 18 (Supp. 97-2). Amended by exempt rulemaking at 7 A.A.R. 5252, effective November 2, 2001 (Supp. 01-4). Section R19-1-250 recodified to R19-1-228 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2).
• The following Section was repealed under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1996, Ch. 307 § 18. Although exempt from certain provisions of the rulemaking process, the Department was required to provide for reasonable notice and hearing. This Section was not reviewed by the Governor's Regulatory Review Council; and the Department did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register (Supp. 97-2). Adoption was made under a different exemption (Supp. 96-4).

Ariz. Admin. Code § R19-1-251 [REPEALED]

History

• Adopted effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). Repealed effective June 4, 1997, under an exemption from certain provisions of the Administrative Procedure Act pursuant to Laws 1996, Ch. 307, § 18 (Supp. 97-2).
• The following Section was amended under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1996, Ch. 307 § 18. Although exempt from certain provisions of the rulemaking process, the Department was required to provide for reasonable notice and hearing. This Section was not reviewed by the Governor's Regulatory Review Council; and the Department did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register (Supp. 97-2). Adoption was made under a different exemption (Supp. 96-4).

Ariz. Admin. Code § R19-1-252 Recodified

History

• Adopted effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). Amended effective June 4, 1997, under an exemption from certain provisions of the Administrative Procedure Act pursuant to Laws 1996, Ch. 307, § 18 (Supp. 97-2). Section R19-1-252 recodified to R19-1-313 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2).
• The following Section was adopted under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1989, Ch. 234, § 22. The Office of the Secretary of State was not allowed by law to file or publish exempt rules when the Section was adopted by the Department. The Department has now filed this Section with the Office of the Secretary of State as required pursuant to Laws 1996, Ch. 307, § 19.

Ariz. Admin. Code § R19-1-253 Recodified

History

• Adopted effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). Section R19-1-253 recodified to R19-1-205 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2).
• The following Section was adopted under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1989, Ch. 234, § 22. The Office of the Secretary of State was not allowed by law to file or publish exempt rules when the Section was adopted by the Department. The Department has now filed this Section with the Office of the Secretary of State as required pursuant to Laws 1996, Ch. 307, § 19.

Ariz. Admin. Code § R19-1-254 Recodified

History

• Adopted effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). Section R19-1-254 recodified to R19-1-227 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2).
• The following Section was adopted under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1989, Ch. 234, § 22. The Office of the Secretary of State was not allowed by law to file or publish exempt rules when the Section was adopted by the Department. The Department has now filed this Section with the Office of the Secretary of State as required pursuant to Laws 1996, Ch. 307, § 19.

Ariz. Admin. Code § R19-1-255 Recodified

History

• Adopted effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). Section R19-1-255 recodified to R19-1-216 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2).
• The following Section was amended and then repealed under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1996, Ch. 307 § 18. Although exempt from certain provisions of the rulemaking process, the Department was required to provide for reasonable notice and hearing. This Section was not reviewed by the Governor's Regulatory Review Council; and the Department did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register (Supp. 97-2). Adoption was made under a different exemption (Supp. 96-4)

Ariz. Admin. Code § R19-1-256 [REPEALED]

History

• Adopted effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). Amended effective June 4, 1997; repealed effective June 10, 1997. Both actions were exempt from certain provisions of the Administrative Procedure Act pursuant to Laws 1996, Ch. 307, § 18 (Supp. 97-2).
• The following Section was adopted under an exemption from the provisions of the Arizona Administrative Procedure Act. Exemption from this Act means that the rule was not reviewed by the Governor's Review Council; the rule was not submitted to the Secretary of State's Office for publication as a proposed rule in the Arizona Administrative Register; the public did not have an opportunity to comment on the rule; and the rule was not certified by the Attorney General.

Ariz. Admin. Code § R19-1-257 Recodified

History

• Adopted effective August 3, 1994, under an exemption from the Administrative Procedure Act (Supp. 94-3). R19-1-257 recodified from R4-15-257 (Supp. 95-1). Section R19-1-257 recodified to R19-1-304 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2).

Article 3 LICENSEE RESPONSIBILITIES

Ariz. Admin. Code § R19-1-301 Recodified

History

• Adopted effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). Amended effective June 4, 1997; amended again effective June 10, 1997. Both amendments were exempt from certain provisions of the Administrative Procedure Act pursuant to Laws 1996, Ch. 307, § 18 (Supp. 97-2). Section R19-1-301 recodified to R19-1-201 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2).

Ariz. Admin. Code § R19-1-302 Knowledge of Liquor Law; Responsibility

A.A licensee shall take reasonable steps to ensure the following individuals acquire knowledge of A.R.S. Title 4 and this Chapter:

1. The licensee;

2. The manager;

3. Any employee who serves, sells, or furnishes spirituous liquor to a retail customer; and

4. Any individual who will be physically present and operating the licensed premises.

B.This Section is authorized by A.R.S. § 4-112(G)(2).

History

• Adopted effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). Amended effective June 4, 1997, under an exemption from certain provisions of the Administrative Procedure Act pursuant to Laws 1996, Ch. 307, §18 (Supp. 97-2). Former Section R19-1-302 recodified to R19-1-315 ; new Section R19-1-302 recodified from R19-1-239 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2). New section by final rulemaking at 20 A.A.R. 1207, effective 7/6/2014.

Ariz. Admin. Code § R19-1-303 Authorized Spirituous Liquor

A. A licensee shall not directly or indirectly manufacture, sell, or deal in spirituous liquor in Arizona other than the spirituous liquors authorized by the license issued to the licensee under A.R.S. Title 4 and this Chapter.

B. A licensee shall ensure that no spirituous liquor other than the spirituous liquors authorized by the license issued to the licensee under A.R.S. Title 4 and this Chapter is on the licensed premises for any purpose.

C. This Section is authorized by A.R.S. § 4-203(B)(1).

History

• Adopted effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). Repealed effective June 4, 1997, under an exemption from certain provisions of the Administrative Procedure Act pursuant to Laws 1996, Ch. 307, § 18 (Supp. 97-2). Adopted by final rulemaking at 5 A.A.R. 386, effective January 8, 1999 (Supp. 99-1). Former Section R19-1-303 recodified to R19-1-317 ; new Section R19-1-303 recodified from R19-1-242 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2). New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).
• The following Section was amended under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to Laws 1996, Ch. 307 § 18. Although exempt from certain provisions of the rulemaking process, the Department was required to provide for reasonable notice and hearing. This Section was not reviewed by the Governor's Regulatory Review Council; and the Department did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register (Supp. 97-2). Adoption was made under a different exemption (Supp. 96-4).

Ariz. Admin. Code § R19-1-304 Storing Spirituous Liquor on Unlicensed Premises

A. Except as provided in subsection (B), a licensee shall not accept delivery of or store spirituous liquor at any premises other than the business premises described on the license issued to the licensee under A.R.S. Title 4 and this Chapter.

B. The Department shall authorize a licensee to accept delivery of or store spirituous liquor at a premises other than the business premises described on the license issued to the licensee under A.R.S. Title 4 and this Chapter if:

1. The licensee submits a written request to the Department that:

a. Identifies the unlicensed premises,

b. Provides a diagram that shows the geographical location of the unlicensed premises in relation to the business premises, and

c. Explains how the licensee will safeguard the spirituous liquor at the unlicensed premises; and

2. The Department determines that the licensee will safeguard the spirituous liquor at the unlicensed premises in a manner that protects the public health, safety, and welfare and that authorizing the licensee to store spirituous liquor at the unlicensed premises is consistent with the best interest of the state.

C. A licensee granted authorization under subsection (B) shall provide evidence of the authorization to a wholesaler before asking the wholesaler to make delivery of spirituous liquor at the unlicensed premises.

D. This Section is authorized by A.R.S. § 4-203(B).

History

• Adopted effective September 14, 1990, under an exemption from the Administrative Procedure Act pursuant to Laws 1989, Ch. 234, § 22; filed with the Office of the Secretary of State October 25, 1996 (Supp. 96-4). Amended effective June 4, 1997, under an exemption from certain provisions of the Administrative Procedure Act pursuant to Laws 1996, Ch. 307, § 18 (Supp. 97-2). Former Section R19-1-304 recodified to R19-1-316 ; new Section R19-1-304 recodified from R19-1-257 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2). New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).
• The following Section was adopted and amended under an exemption from the Arizona Administrative Procedure Act (A.R.S. Title 41, Chapter 6). Although exempt from certain provisions of the rulemaking process, the Department was required to provide for reasonable notice and hearing on the original rule. This Section was not reviewed by the Governor's Regulatory Review Council; and the Department did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register (Supp. 97-2).

Ariz. Admin. Code § R19-1-305 Paying Taxes Required

A. The Director shall not issue an interim permit on a quota license if the Director has notice that the quota-license licensee is delinquent in paying any tax to the state or a political subdivision unless:

1. The licensee or transferee enters into an agreement with the taxing authority to pay the delinquent tax; and

2. The taxing authority submits written verification of the agreement to the Director.

B. This Section is authorized by A.R.S. §§ 4-112(B)(1)(c), 4-205.04(E), and 4-210(A)(5).

History

• Adopted effective June 4, 1997, under an exemption from certain provisions of the Administrative Procedure Act pursuant to Laws 1996, Ch. 307, § 18 (Supp. 97-2). Amended effective November 24, 1998, under an exemption from provisions of the Administrative Procedure Act pursuant to Laws 1998, Ch. 259, § 23 (Supp. 98-4). Former Section R19-1-305 recodified to R19-1-233 ; new Section R19-1-305 recodified from R19-1-218 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2). New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-1-306 Bottle Labeling Requirements

A. A licensee and any officer, director, agent, or employee of the licensee shall not directly or indirectly or through an affiliate sell, ship, deliver for sale or shipment, or receive or remove from federal custody any bottled spirituous liquor unless the spirituous liquor is bottled, packaged, and labeled in conformity with all federal requirements.

B. This Section is authorized by A.R.S. § 4-112(B)(1)(a).

History

• New Section R19-1-306 recodified from R19-1-219 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2). New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-1-307 Bottle Reuse or Refilling Prohibited

A. Except as authorized under A.R.S. § 4-244(32), a retail licensee shall ensure that a bottle or other container authorized by law for packaging spirituous liquor:

1. Is not reused to package spirituous liquor after the spirituous liquor originally packaged in the bottle or other container is removed from the bottle or other container, and

2. Bears a label that accurately indicates the kind and brand of spirituous liquor in the bottle or other container.

B. Except as authorized under A.R.S. § 4-244(32) and (45), a retail licensee shall ensure that no substance is added to a bottle or other container authorized by law for packaging spirituous liquor that has the effect of increasing the amount of liquid originally packaged or remaining in the bottle or other container.

C. This Section is authorized by A.R.S. § 4-244(21), (32), and (45).

History

• New Section R19-1-307 recodified from R19-1-225 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2). New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-1-308 Age Requirement for Erotic Entertainers

A. A licensee shall ensure that an individual employed by or performing as an erotic entertainer at the licensed premises is at least 19 years old.

B. This Section is authorized by A.R.S. § 4-112(G)(6).

History

• New Section R19-1-308 recodified from R19-1-243 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2). New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-1-309 Prohibited Acts

A. A licensee or an employee of a business shall take reasonable steps to ensure that an individual on the licensed premises, including an employee or independent contractor of the licensed premises, does not:

1. Expose any portion of the individual's anus, vulva, or genitals;

2. Grope, caress, or fondle or cause to be groped, caressed, or fondled the breasts, anus, vulva, or genitals of another individual with any part of the body; or

3. Perform an act of sexual intercourse, masturbation, sodomy, bestiality, or oral copulation.

B. This Section is authorized by A.R.S. § 4-112(B)(1)(b).

History

• New Section R19-1-309 recodified from R19-1-244 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2). New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-1-310 Prohibited Films and Pictures

A. A licensee shall ensure that a film, slide picture, or other reproduction is not shown on the licensed premises if the film, slide picture, or other reproduction depicts:

1. An act of sexual intercourse, masturbation, sodomy, bestiality, oral copulation, or a sexual act prohibited by law;

2. An individual being touched, caressed, or fondled on the breast, anus, vulva, or genitals;

3. An individual displaying a portion of the individual's pubic hair, anus, vulva, or genitals; or

4. Use of an artificial device or inanimate object to depict an activity described under subsections (1) through (3).

B. This Section is authorized by A.R.S. § 4-112(B)(1)(b).

History

• New Section R19-1-310 recodified from R19-1-240 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2). New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-1-311 [Repealed]

History

• New Section R19-1-311 recodified from R19-1-233 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-1-312 Accurate Labeling of Dispensing Equipment Required

A. A licensee shall ensure that equipment through which spirituous liquor is dispensed is accurately labeled with the brand, grade, or class of spirituous liquor, including wine and beer, dispensed and that nothing on the equipment label directly or indirectly misleads the public regarding the spirituous liquor dispensed, sold, or used.

B. Except as provided in subsection (C), a licensee shall ensure that a faucet, spigot, or other outlet from which spirituous liquor is dispensed is clearly and conspicuously labeled with the name or brand adopted by the manufacturer of the spirituous liquor being dispensed.

C. If a faucet, spigot, or other outlet from which spirituous liquor is dispensed is not located in the area in which the spirituous liquor is served, a licensee shall post a notice in the area in which the spirituous liquor is served that lists the names or brands adopted by the manufacturers of only the spirituous liquors served.

D. This Section is authorized by A.R.S. § 4-243.

History

• New Section R19-1-312 recodified from R19-1-223 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2). New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-1-313 [Repealed]

History

• New Section R19-1-313 recodified from R19-1-252 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-1-314 Prohibited Inducement to Purchase or Consume Spirituous Liquor

A. Except as specified in subsection (B), an on-sale retailer shall not offer or furnish to a customer an inducement such as a gift, prize, coupon, premium, or rebate, including assumption of an excise or transaction privilege tax, if receipt of the inducement is contingent on the purchase or consumption of spirituous liquor.

B. A bar or beer and wine bar licensee may offer or furnish a coupon to a customer if the coupon can be used only for an off-sale purchase.

C. An on-sale retailer may furnish to a customer an advertising novelty of nominal value or a service that is a customary trade practice if receipt of the novelty or service is not contingent on the purchase or consumption of spirituous liquor.

D. This Section is authorized by A.R.S. § 4-112(B)(1).

History

• New Section R19-1-314 recodified from R19-1-201 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section expired under A.R.S. § 41-1056(E) at 12 A.A.R. 1784, effective January 31, 2006 (Supp. 06-2). New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-1-315 Responsibilities of a Licensee that Operates a Delivery Service

A. A licensed retailer that operates a delivery service under A.R.S. § 4-203(J), a licensed farm winery that delivers wine under A.R.S. § 4-205.04(C)(9), a common carrier that delivers wine under A.R.S. § 4-203.04(J), or a licensed craft distiller that delivers distilled spirits under A.R.S. § 4-205.10(C)(7) shall ensure that delivery of spirituous liquor:

1. Is made only to an individual who is at least 21 years old,

2. Is made only after an inspection of identification shows that the individual accepting delivery of the spirituous liquor is of legal drinking age,

3. Is made only during the hours of lawful service of spirituous liquor,

4. Is not made to an intoxicated or disorderly individual, and

5. Is not made to the licensed premises of a licensed retailer.

B. A licensed retailer that operates a delivery service under A.R.S. § 4-203(J), a licensed farm winery that delivers wine under A.R.S. § 4-205.04(C)(9), a common carrier that delivers wine under A.R.S. § 4-203.04(J), or a licensed craft distiller that delivers distilled spirits under A.R.S. § 4-205.10(C)(7) shall refuse to complete a delivery if the licensee or common carrier believes the delivery may constitute a violation of A.R.S. Title 4 or this Chapter.

C. This Section is authorized by A.R.S. §§ 4-112(B)(1)(d), 4-203(J) and (M), 4-203.04(J), 4-205.04(C)(9), and 4-205.10(C)(7).

History

• New Section R19-1-315 recodified from R19-1-302 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section renumbered to R19-1-113, new Section R19-1-315 made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2). Amended by final expedited rulemaking at 30 A.A.R. 389, effective 2/9/2024.

Ariz. Admin. Code § R19-1-316 Responsibilities of a Liquor Store or Beer and Wine Store Licensee

A. Except for a broken package, as defined at A.R.S. § 4-101, used in sampling conducted under A.R.S. § 4-206.01(K), 4-243(B)(3) or 4-244.04, a liquor store or beer and wine store licensee shall not have a broken package of spirituous liquor on the licensed premises.

B. This Section is authorized by A.R.S. § 4-244(19).

History

• New Section R19-1-316 recodified from R19-1-304 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2). New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2). Amended by final expedited rulemaking at 30 A.A.R. 389, effective 2/9/2024.

Ariz. Admin. Code § R19-1-317 Responsibilities of a Hotel-Motel or Restaurant Licensee

A. If a hotel-motel or restaurant licensee ceases to provide complete restaurant services before 10:00 p.m., the licensee shall cease to sell spirituous liquor at the same time that the licensee ceases to provide complete restaurant services.

B. If a hotel-motel or restaurant licensee provides complete restaurant services until at least 10:00 p.m., the licensee may continue to sell spirituous liquor during the hours allowed by law.

C. If a hotel-motel or restaurant licensee refuses to serve a meal requested before 10:00 p.m. and continues to serve spirituous liquor, the Department shall assume that the hotel-motel or restaurant licensee has ceased to operate as a restaurant and has the primary purpose of selling or dispensing spirituous liquor for consumption.

D. In the event of an audit to determine whether a hotel-motel or restaurant licensee meets the standard at A.R.S. § 4-205.02(M), the licensee shall submit records that enable the Department to determine the amount of gross revenue that the licensee derives from the sale of food and from the sale of spirituous liquor. If the Department is unable to determine the amount of gross revenue attributed to the sale of food, the Department shall assume that the licensee does not meet the standard at A.R.S. § 4-205.02(M).

E. To ensure that the Department is able to determine the amount of gross revenue derived from the sale of food and from the sale of spirituous liquor, a hotel-motel or restaurant licensee shall maintain the majority of the following documents in the following order for the time specified in R19-1-501:

1. Vendor invoices. Sorted by vendor by year;

2. Inventory records; financial statements; general ledger; sales journals or schedules; cash receipts or disbursement journals; and bank statements. Sorted by month by year;

3. Daily sales report, guest checks, and cash register journal. Segregated by the sale of food and the sale of spirituous liquor and sorted by day by month by year;

4. Bank deposit slips. Sorted by day by month by year and maintained with the daily sales report, guest checks, and cash register journal;

5. Transaction privilege tax returns. Sorted by month by year;

6. Income tax returns. Sorted by year; and

7. Payroll records. Sorted by pay period by year.

F. If a licensee holds multiple licenses for business premises, one of which is for a hotel-motel or restaurant, the licensee shall ensure that records for purchases and sales for the hotel-motel or restaurant are maintained and accounted for separate from records for purchases and sales for the other license on the same premises.

G. This Section is authorized by A.R.S. §§ 4-205.01 and 4-205.02.

History

• New Section R19-1-317 recodified from R19-1-303 at 8 A.A.R. 2636, effective May 30, 2002 (Supp. 02-2). Section repealed by final rulemaking at 19 A.A.R. 1355, effective July 6, 2013 (Supp. 13-2). New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2). Amended by final expedited rulemaking at 30 A.A.R. 389, effective 2/9/2024.

Ariz. Admin. Code § R19-1-318 Responsibilities of a Special Event Licensee

A. If a special event occurs at an otherwise unlicensed location, the special event licensee shall conduct all dispensing, serving, and selling of spirituous liquor;

B. If a special event occurs at the licensed premises of a licensed retailer, the special event licensee shall ensure that one of the following occurs during the special event:

1. The licensed retailer places the license in non-use status and ceases to sell spirituous liquor and the special event licensee dispenses and serves spirituous liquor and ensures that all sales of spirituous liquor comply with A.R.S. Title 4 and this Chapter;

2. The licensed retailer dispenses and serves all spirituous liquor under the licensed retailer's license and the special event licensee does not dispense or serve spirituous liquor. The licensed retailer shall dispense and serve only spirituous liquor purchased from a wholesaler and ensure that all sales of spirituous liquor comply with A.R.S. Title 4 and this Chapter;

3. The licensed retailer dispenses and serves all spirituous liquor under the special event license and the special event licensee does not dispense or serve spirituous liquor. The licensed retailer shall dispense and serve only spirituous liquor purchased by or donated to the special event licensee. Both the licensed retailer and special event licensee shall ensure that all sales of spirituous liquor comply with A.R.S. Title 4 and this Chapter; or

4. The licensed premises of the licensed retailer are divided into two areas as follows:

a. In the first area, the licensed retailer shall dispense and serve spirituous liquor that is purchased from a wholesaler and ensure that all sales of spirituous liquor comply with A.R.S. Title 4 and this Chapter; and

b. In the second area, the special event licensee shall dispense and serve spirituous liquor purchased by or donated to the special event licensee and ensure that all sales of spirituous liquor comply with A.R.S. Title 4 and this Chapter.

C. If a special event involving sampling of spirituous liquor occurs at the licensed premises of a licensed retailer, the special event licensee shall comply with the procedures in A.R.S. § 4-243(B).

D. This Section is authorized by A.R.S. §§ 4-112(B)(1)(b) and 4-203.02(E).

History

• New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-1-319 Commercial Coercion or Bribery Prohibited

A. A distiller, vintner, brewer, rectifier, blender, or other producer or wholesaler shall not directly or indirectly or through an affiliate engage in any of the following activities unless specifically authorized under A.R.S. Title 4 or this Chapter:

1. Furnishing, giving, renting, lending, or selling to a licensed retailer an article of primary utilitarian value in the conduct of the business;

2. Selling food or food products to a licensed retailer at less than the cost that the producer or wholesaler paid for the food or food products;

3. Selling non-alcoholic malt beverage, non-alcoholic wine, or other non-alcoholic beverage or cocktail mixer to a licensed retailer at less than the cost that the producer or wholesaler paid for the non-alcoholic malt beverage, non-alcoholic wine, or cocktail mixer.

4. Extending credit or furnishing financing to a licensed retailer through the licensed retailer's purchase of spirituous liquor or other products;

5. Providing a service to a licensed retailer, including stocking, resetting, or pricing merchandise;

6. Paying or crediting a licensed retailer for a promotion, advertising, display, public relations effort, or distribution service;

7. Sharing with a licensed retailer the cost of a promotion or advertising through any medium;

8. Guaranteeing a loan to or repayment of a financial obligation of a licensed retailer;

9. Providing financial assistance to a licensed retailer;

10. Engaging in a practice that requires a licensed retailer to take and dispose of a quota of spirituous liquor;

11. Offering or giving a meal, local ground transportation, or event ticket to a licensed retailer unless the item is deductible as a business entertainment expense under the Internal Revenue Code;

12. Offering a product to an on-sale licensee at a price not available to all on-sale licensees. A price based on the volume delivered within a 24-hour period is permitted if the volume-based price is available to all on-sale licensees; or

13. Offering a product to an off-sale licensee at a price not available to all off-sale licensees. A price based on the volume delivered within a 24-hour period is permitted if the volume-based price is available to all off-sale licensees.

B. A licensed retailer shall not require that a producer or wholesaler provide stocking or resetting services as a condition for being allocated shelf, cold box, or product display space.

C. A licensed retailer shall not solicit from a distiller, vintner, brewer, rectified, blender, or other producer or wholesaler any activity outlined in subsections (A)(1) through (A)(13) unless specifically authorized under A.R.S. Title 4 or this Chapter.

D. This Section is authorized by A.R.S. § 4-243(A).

History

• New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-1-320 Practices Permitted by a Producer or Wholesaler

A. In addition to practices specifically authorized under A.R.S. Title 4 and 27 CFR, Chapter 1, Subchapter A, the practices outlined in subsections (B) through (Q) allow a distiller, vintner, brewer, rectifier, blender, or other producer or wholesaler to furnish something of value to a licensed retailer or other specified licensee as long as the producer or wholesaler does not furnish something of value to induce the licensed retailer or other specified licensee to purchase spirituous liquor from the producer or wholesaler to the exclusion, in whole or in part, of another producer or wholesaler. A distiller, vintner, brewer, rectifier, blender, or other producer or wholesaler shall not furnish something of value to a licensed retailer or other specified licensee unless specifically authorized under A.R.S. Title 4, 27 CFR, Chapter 1, Subchapter A, or this Chapter. If there is a conflict between the practices authorized in 27 CFR, Chapter 1, Subsection A and this Chapter, this Chapter governs.

B. A licensed retailer shall not solicit or knowingly accept from a distiller, vintner, brewer, rectifier, blender, or other producer or wholesaler any activity not outlined in subsections (C) through (Q) unless the activity is specifically authorized under A.R.S. Title 4 or this Chapter.

C. Participating in a special event.

1. A producer or wholesaler may furnish advertising, sponsorship, services, or other things of value at a special event at which spirituous liquor is sold if:

a. A special event license is issued for the special event. A producer or wholesaler shall not pay for advertising, sponsorship, services, or other things of value until the wholesaler or producer confirms that a special event application has been submitted for approval under A.R.S. § 4-203.02;

b. The special event license is issued to a charitable, civic, religious, or fraternal organization;

c. The special event license is not issued to a political committee or organization;

d. The producer or wholesaler ensures that nothing of value given to a licensed retailer or employees of a licensed retailer during or after the special event is left on the licensed premises of a licensed retailer except that the wholesaler may leave items of value with the licensed retailer or at the licensed premises if the retailer is an on-sale retailer and leaving the items of value complies with the restrictions at A.R.S. § 4-243(D); and

e. The producer or wholesaler pays financial sponsorship, if any, to the organization to which the special event license is issued.

2. A producer or wholesaler may donate spirituous liquor to a special event licensee identified under subsection (C)(1)(b).

3. A producer or wholesaler may dispense spirituous liquor donated by the producer or wholesaler at a special event.

4. A producer or wholesaler may provide a sign to a special event licensee identified under subsection (C)(1)(b). If the producer or wholesaler provides a sign to a special event licensee, the sign is not subject to R19-1-313.

5. A producer or wholesaler may furnish a vehicle for use by a special event licensee identified under subsection (C)(1)(b). The producer or wholesaler shall ensure the vehicle is used to dispense spirituous liquor only during the days of the special event.

D. Providing an item of value to a customer of a licensed retailer. A producer or wholesaler or its employee or independent contractor may provide an item of value to a customer of a licensed retailer if:

1. The item is provided directly to the customer of the licensed retailer by the producer or wholesaler or an employee or independent contractor of the producer or wholesaler except that a schedule of sporting events, as defined in subsection (F), may be provided to the customer through the licensed retailer;

2. The item provided has a value less than $5 and bears advertising about the producer, wholesaler, or spirituous liquor available from the producer or wholesaler. The producer or wholesaler may provide an unlimited number of items;

3. The item provided has a value more than $5 and bears advertising about the producer, wholesaler, or spirituous liquor available from the producer or wholesaler. The producer or wholesaler shall ensure that the total value of all items provided does not exceed $100 during any 6:00 a.m. to 2:00 a.m. period per licensed premises; and

4. The producer or wholesaler ensures that no item of value is provided to the licensed retailer or an employee of the licensed retailer or is left on the licensed premises.

E. Furnishing advertising. A producer or wholesaler may furnish advertising copy in the form of a digital file or camera- or internet-ready images of nominal value to a licensed retailer.

F. Sponsoring a sporting event. If the licensed premises of a licensed retailer has a permanent occupancy of more than 1,000 people and is used primarily for live sporting events, a producer or wholesaler may sponsor and provide advertising to the licensed retailer in conjunction with a live sporting event or telecast of a sporting event at the licensed premises. If the producer or wholesaler provides a sign as part of the sponsorship of a sporting event, the sign is not subject to the value limitation or information content restrictions in R19-1-313 . The producer or wholesaler shall ensure no item of value remains with the licensed retailer or at the licensed premises after the sporting event except that the wholesaler may leave items of value with the licensed retailer or at the licensed premises if the retailer is an on-sale retailer and leaving the items of value complies with the restrictions at A.R.S. § 4-243(D). For the purpose of this subsection, live sporting event means an athletic competition governed by a set of rules or customs to which pre-sold tickets are made available to the public. For nationally recognized sporting events that are seasonal, including but not limited to baseball, football, basketball, soccer, and NASCAR, the conclusion of a live sporting event occurs when the season ends rather than after each individual event of the season. A golf tournament is not a live sporting event unless:

1. The golf tournament is regulated by a golf association; or

2. The golf tournament is held for the benefit of an unlicensed organization and the sponsoring producer or wholesaler ensures that:

a. All sponsorship proceeds are provided to the unlicensed organization, and

b. Nothing of utilitarian value or other consideration is provided to a licensed retailer.

G. Sponsoring a concert. If the licensed premises of a licensed retailer has a permanent occupancy of more than 1,000 people and is used primarily as a concert or live sporting event venue, a producer or wholesaler may sponsor and provide advertising to the licensed retailer in conjunction with a concert at the licensed premises. For the purpose of this subsection, "concert" is a live event with presold tickets for a musical, vocal, theatrical, or comedic performance at the licensed premises or a live musical, vocal, theatrical, or comedic performance at the licensed premises that is not open to the public. If the producer or wholesaler provides a sign as part of the sponsorship of a concert, the sign is not subject to the value limitation or information content restrictions in R19-1-313 . The producer or wholesaler shall ensure that no item of value remains with the licensed retailer or at the licensed premises after the conclusion of the concert event except that the wholesaler may leave items of value with the licensed retailer or at the licensed premises if the retailer is an on-sale retailer and leaving the items of value complies with the restrictions at A.R.S. § 4-243(D).

H. Participating in a tradeshow or convention. A producer or wholesaler may provide for a licensee sampling, advertising, and event sponsorship to a trade association in conjunction with a tradeshow or convention if the trade association consists of five or more retail licensees that have no common ownership. If the producer or wholesaler provides a sign as part of the sponsorship of a tradeshow or convention, the sign is not subject to the value limitation or information content restrictions in R19-1-313 . The producer or wholesaler shall ensure the sign is physically placed at the location where the tradeshow or convention is held. The producer or wholesaler shall remove the sign within one business day after the conclusion of the tradeshow or convention and ensure that no item of value remains with the licensed retailer after the conclusion of the tradeshow or convention event except that the wholesaler may leave items of value with the licensed retailer if the retailer is an on-sale retailer and leaving the items of value complies with the restrictions at A.R.S. § 4-243(D).

I. Participating in an educational seminar. A producer or wholesaler may participate in an educational seminar for employees of a licensed retailer if:

1. The educational seminar occurs on the licensed premises of a producer, wholesaler, or retailer;

2. Content of the educational seminar is substantially related to spirituous liquor available from the producer or wholesaler;

3. Lodging and transportation expenses incurred by employees of the licensed retailer or the licensed retailer to attend the educational seminar are not paid or reimbursed by the producer or wholesaler. The producer or wholesaler may provide a meal and snacks of nominal value to participants in the education seminar;

4. The retailer's expenses associated with organizing, producing, or hosting the educational seminar are not paid or reimbursed by the producer or wholesaler; and

5. No item of value remains with the licensed retailer after the conclusion of the educational seminar event except that the wholesaler may leave items of value with the licensed retailer if the retailer is an on-sale retailer and leaving the items of value complies with the restrictions at A.R.S. § 4-243(D).

J. Furnishing a printed menu. A producer or wholesaler may furnish a printed menu for use by a retailer if:

1. All printed menus furnished to the licensed retailer during a calendar year have a fair market value within the limit prescribed by A.R.S. § 4-243(D),

2. A similar menu is made available to all retail accounts that use menus,

The menu has no utilitarian value to the licensed retailer except as a menu, and

4. The menu conspicuously bears the name of spirituous liquor available from the producer or wholesaler or the name of the producer or wholesaler.

K. Distributing coupons or rebates. A producer or wholesaler may distribute coupons or rebates to consumers by any means including providing the coupons or rebates to a licensed retailer if the coupons or rebates:

1. Can be used only for an off-sale purchase by the consumer from a licensed retailer,

2. Do not specify a licensed retailer at which the coupons or rebates are required to be used, and

3. Are available in approximately the same number of qualifying products the licensed retailer has available for customers if the coupons or rebates are ultimately redeemed by the licensed retailer.

L. Providing holiday decorations. A producer or wholesaler may lend decorations commonly associated with a specific holiday to a licensed retailer for use on the licensed premises if the decorations:

1. Bear advertising about a brand, producer, or wholesaler that is substantial, conspicuous, and permanently inscribed or securely affixed; and

2. The decorations have no utilitarian value to the licensed retailer other than as decorations for a specific holiday.

M. Providing a sample to a customer of a licensed retailer. A producer or wholesaler may provide a sample of spirituous liquor to a customer of a licensed:

1. On-sale retailer without off-sale privileges if the producer or wholesaler complies with the procedures at A.R.S. § 4-243(B)(2)(b), which limit sampling to 12 ounces of beer or cooler product, six ounces of wine, or two ounces of distilled spirits per person, per brand to be consumed on the licensed premises;

2. Off-sale retailer if the producer or wholesaler complies with the procedures at A.R.S. § 4-243(B)(3)(c), which limit sampling to three ounces of beer, one and one-half ounces of wine, or one ounce of distilled spirits per person, per day if consumed on the licensed premises. If the sample provided is for consumption off the licensed premises, the producer or wholesaler shall ensure the sample is limited to 72 ounces of beer and two ounces of distilled spirits per person per day; or

3. On-sale retailer with off-sale privileges if the producer or wholesaler complies with subsection (M)(1) when providing samples under the on-sale portion of the license and subsection (M)(2) when providing samples under the off-sale portion of the license.

N. Conducting market research. A producer or wholesaler may participate in market research regarding spirituous liquor under the following conditions:

1. The spirituous liquor is provided to research participants by personal delivery or through a delivery service provider;

2. The spirituous liquor provided to research participants is obtained from or shipped through a wholesaler;

3. All research participants are of legal drinking age;

4. Any employee of the producer or wholesaler and any employee of a marketing research business conducting the market research that handles the spirituous liquor is at least 19 years old; and

5. The amount of spirituous liquor provided to each research participant does not exceed 72 ounces of beer, cooler product, or wine or 750 milliliters of distilled spirits.

O. Providing a sample to a licensed retailer. A producer or wholesaler may provide a licensed retailer with a sample of a brand of spirituous liquor that the licensed retailer has not purchased for sale within the last 12 months if the sample does not exceed the following:

1. Wine. Three liters;

2. Beer. Three gallons; and

3. Distilled spirits. Three liters.

P. Providing a shelf plan or schematic. A producer or wholesaler may provide a recommended shelf plan or schematic for use by a licensed retailer in displaying spirituous liquor or other product in a point-of-sale area.

Q. Providing meals, beverages, event tickets, and local ground transportation. Except as provided under subsection (I), a producer or wholesaler may provide a licensed retailer with meals, beverages, event tickets, and local ground transportation if:

1. The producer or wholesaler accompanies the licensed retailer while meals and beverages are consumed and ground transportation is used; and

2. The value of the meals, beverages, event tickets, and local ground transportation is deductible as a business entertainment expense under the Internal Revenue Code.

R. A producer or wholesaler that sells spirituous liquor to another producer or wholesaler is exempt from the credit prohibition in A.R.S. § 4-242.

S. Section is authorized by A.R.S. §§ 4-242, 4-243 and 4-244(3).

History

• New section by final rulemaking at 20 A.A.R. 1207, effective 7/6/2014. Amended by final expedited rulemaking at 30 A.A.R. 389, effective 2/9/2024.

Ariz. Admin. Code § R19-1-321 Practices Permitted by a Wholesaler

A.In addition to practices specifically authorized under A.R.S. Title 4 and 27 CFR, Chapter 1, Subchapter A, the following practices allow a wholesaler to furnish something of value to a licensed retailer or other specified licensee as long as the wholesaler does not furnish something of value to induce the licensed retailer or other specified licensee to purchase spirituous liquor from the wholesaler to the exclusion, in whole or in part, of another wholesaler. A wholesaler shall not furnish something of value to a licensed retailer or other specified licensee unless specifically authorized under A.R.S. Title 4, 27 CFR, Chapter 1, Subchapter A, or this Chapter. If there is a conflict between the practices authorized in 27 CFR, Chapter 1, Subsection A and this Chapter, this Chapter governs.

B.A licensed retailer shall not solicit or knowingly accept from a wholesaler any activity not outlined in subsections (C) through (N) unless the activity is specifically authorized under A.R.S. Title 4 or this Chapter.

C.Providing stocking services. A wholesaler may stock any spirituous liquor or other product that the wholesaler sells to a licensed retailer. The stocking service provided by a wholesaler:

1. Shall not alter or disturb any spirituous liquor or other product of another wholesaler;

2. Shall be performed at a point-of-sale area, including a cold box, from which a consumer may purchase spirituous liquor sold by the retailer. A wholesaler may move spirituous liquor to or from the following locations on the licensed premises:

a. A designated delivery entrance, and

b. A storage area; and

3. May include:

a. Rotating, cleaning, or otherwise preparing the spirituous liquor or other product for sale at a point-of-sale area; and

b. Furnishing advertising materials displayed at a point-of-sale area as authorized under R19-1-313.

D.Providing resetting services. A wholesaler may reset spirituous liquor sold to a licensed retailer if requested by the licensed retailer and the resetting does not alter or disturb the product of another wholesaler. The resetting services provided by a wholesaler:

1. Shall be performed only in a point-of-sale area, including a cold box;

Shall not be performed unless the retailer provides at least two working days' notice to any other wholesaler whose product needs to be affected so the resetting can be performed; and

Shall not be performed more frequently than once per year if the resetting involves a substantial reconfiguration of the spirituous liquor department of a retailer.

E.Furnishing tapping equipment. A wholesaler may furnish tapping equipment under R19-1-326 to a retail licensee.

F.Making a driver sale. A wholesaler may sell to a licensed retailer, through a driver sale, at the current market price, spirituous liquor not previously ordered.

G.Delivering a specially discounted quantity purchase. A wholesaler may provide a licensed retailer with a specially discounted price for a quantity purchase if the wholesaler delivers the entire quantity purchased to an approved storage facility of the licensed retailer.

H.Accepting returned spirituous liquor products.

1. A wholesaler may allow a licensed retailer that intends to be closed for at least 30 days to exchange beer or other malt beverage products purchased from the wholesaler or to receive a credit for or refund of the amount paid for the malt beverage products;

2. With permission from the Director, a wholesaler may allow a licensed retailer that is discontinuing sale of a particular beer or other malt beverage product to exchange the product purchased from the wholesaler or to receive a credit for or refund of the amount paid for the beer or other malt beverage product; and

3. A wholesaler may exchange or accept return of other spirituous liquors as permitted under 27 U.S.C. 205(d) and 27 C.F.R. Subchapter A, Part 11.

I.Selling tobacco products or foodstuffs. A wholesaler may sell tobacco products or foodstuffs to a licensed retailer if the price paid by the retailer equals or exceeds the cost to the wholesaler.

J.Furnishing promotional items. A wholesaler may provide promotional items to an on-sale retailer. Promotional items, as defined and limited by A.R.S. § 4-243(D) does not include spirituous liquor.

K.Facilitating a special event. A wholesaler may facilitate a special event by:

1. Donating spirituous liquor directly to the special event licensee and issuing a net zero cost billing invoice in the name of the special event licensee,

Leaving a delivery vehicle and other equipment necessary for the sale or service of spirituous liquor on the premises of the special event for the duration of the special event and up to one business day before and after the special event,

3. Leaving spirituous liquor at the special event if:

a. The spirituous liquor is properly described on a preliminary billing invoice issued in the names of both the off-sale retailer from which the special event licensee is purchasing the spirituous liquor and the special event licensee,

b. The wholesaler issues a final billing invoice in the names of both the off-sale retailer from which the special event licensee is purchasing the spirituous liquor and the special event licensee within five business days after the special event ends, and

c. The spirituous liquor is stored securely to ensure only intended persons gain access to the spirituous liquor; and

4. Selling spirituous liquor directly to the special event licensee at the same price the wholesaler sells the spirituous liquor to on-sale retailers. If the wholesaler sells spirituous liquor directly to the special event licensee, both the preliminary and final billing invoices shall be in the name of the special event licensee.

L.Providing shelves, bins, or racks. A wholesaler may lend a shelf, bin, or rack to a licensed off-sale retailer if the following conditions are met:

1. The shelf, bin, or rack lent to the licensed off-sale retailer is located in a point-of-sale area.

2. The shelf, bin, or rack lent to the licensed off-sale retailer does not have an actual cost of more than $300 per brand, as defined at 27 C.F.R. Subchapter A, Section 6.11, at any one time in the licensed premises. The cost of the shelf, bin, or rack excludes the cost of transporting and installing the shelf, bin, or rack. The wholesaler shall not pool or combine dollar limitations to provide the licensed off-sale retailer with a shelf, bin, or rack that exceeds the dollar limitation in this subsection;

The shelf, bin, or rack bears advertising regarding spirituous liquor available from the wholesaler that is conspicuous, substantial, and permanently inscribed or securely affixed. The name and address of the licensed off-sale retailer may appear on the shelf, bin, or rack;

4. The primary function of the shelf, bin, or rack is to hold and display spirituous liquor available from the wholesaler;

5. The spirituous liquor on the shelf, bin, or rack is only the spirituous liquor advertised on the shelf, bin, or rack by the wholesaler. The shelf, bin, or rack may also hold non-spirituous-liquor products that are being promoted or advertised with the spirituous liquor available from the wholesaler; and

6. The shelf, bin, or rack is not temperature controlled.

M.Providing product display enhancers. A wholesaler may lend to a licensed off-sale retailer a non-functional copy or reproduction of an item that enhances the display of spirituous liquor sold from the display.

N.Providing staff assistance. A wholesaler may use its staff to provide a licensed retailer with assistance in performing the activities outlined in this Section. A wholesaler shall not maintain full-time staff or permanently occupy office space on the licensed premises or at the corporate office of a licensed retailer.

O.This Section is authorized by A.R.S. §§ 4-203.02(H) through (J) and 4-243.

History

• New section by final rulemaking at 20 A.A.R. 1207, effective 7/6/2014.

Ariz. Admin. Code § R19-1-322 Responsibilities of a Registered Retail Agent

A. A retail agent registered under A.R.S. § 4-222 and R19-1-203 shall provide a licensee that enters into a cooperative-purchase agreement with the registered retail agent a copy of the cooperative-purchase agreement. The licensee shall make the copy of the cooperative-purchase agreement available for inspection on request by the Department or a peace officer.

B. A retail agent registered under A.R.S. § 4-222 and R19-1-203 shall:

1. Display the Certificate of Registration obtained from the Department on request by the Department, a peace officer, or a licensee;

2. Place all cooperative-purchase orders with a wholesaler;

3. Pay the wholesaler for all cooperative-purchase orders;

4. Not attempt to exchange merchandise after it is delivered by the wholesaler but may request that a delivery error be corrected if the error is recognized at the time of delivery and documented;

Provide each licensee under subsection (A) with a copy of the master invoice prepared by the wholesaler from which a cooperative purchase is made; and

6. Charge each licensee under subsection (A) the price listed on the master invoice prepared by the wholesaler for spirituous liquor delivered to the licensee.

C. A retail agent registered under A.R.S. § 4-222 and R19-1-203 may charge a licensee with which the registered retail agent has a cooperative-purchase agreement a fee for services provided to the licensee.

D. This Section is authorized by A.R.S. § 4-222.

History

• New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-1-323 Underage Individuals on Licensed Premises

A. An individual under the legal drinking age may be on the licensed premises of an on-sale retailer under the conditions established in A.R.S. § 4-244(22).

B. Additionally, an individual under the legal drinking age may be on the licensed premises of an on-sale retailer if:

1. The licensed premises have an occupancy limit of at least 1,000 as determined by the fire marshal;

2. The primary purpose of the licensed premises is not to sell spirituous liquor but rather, to show live sporting events or concerts;

3. The on-sale retailer ensures that spirituous liquor is sold only to individuals who are of the legal drinking age; and

4. The on-sale retailer implements security measures necessary to ensure that an individual under the legal drinking age does not purchase, possess, or consume spirituous liquor on the licensed premises.

C. Additionally, an individual under the legal drinking age may be on the licensed premises of an on-sale retailer if:

1. The licensed premises have an occupancy limit less than 1,000 as determined by the fire marshal;

2. The primary purpose of the licensed premises is not to sell spirituous liquor but rather, to show live sporting events or concerts; and

3. The on-sale retailer establishes a physical barrier that prevents an underage individual from:

a. Entering a portion of the licensed premises where spirituous liquor is sold, possessed, or served; and

b. Receiving, purchasing, possessing, or consuming spirituous liquor in that portion of the licensed premises.

D. This Section is authorized by A.R.S. § 4-210(M) and 4-244(22).

History

• New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-1-324 Standards for Exemption of an Unlicensed Business

A.The owner of a small restaurant or business establishment, business premises, or association hosting a private social function may act under A.R.S. § 4-244.05 if the owner of the small restaurant or business establishment, business premises, or association hosting a private social function:

1. Submits a Request for Exemption form, which is available from the Department and on its web site;

2. Pays the inspection fee specified in R19-1-102(J) ; and

3. Ensures that:

a. Possession or consumption of spirituous liquor on the business premises is permitted only as an incidental convenience to customers;

b. Possession or consumption of spirituous liquor on the business premises is limited as follows:

i. Small restaurant: between noon and 10:00 p.m.; and

ii. Business establishment, business premises, or association hosting a private social function: between 4:00 p.m. and 2:00 a.m.

c. A customer is allowed to possess or consume no more than:

i. Forty ounces of beer,

ii. Seven hundred fifty milliliters of wine, or

iii. Four ounces of distilled spirits;

d. The occupancy limitation of the small restaurant or business establishment, business premises, or association hosting a private social function does not exceed the following maximum:

i. Small restaurant: 50; and

ii. Business establishment, business premises, or association hosting a private social function: 300; and

e. The owner, manager, comptroller, controlling person, and any employee of the small restaurant or business establishment, business premises, or association hosting a private social function complies with all applicable provisions of A.R.S. Title 4 and this Chapter.

B.As provided under A.R.S. § 4-244.05(J)(4), the Director, agent of the Director, or peace officer empowered to enforce A.R.S. Title 4 and this Chapter may visit and inspect a small restaurant, business establishment, business premises, or association operating under A.R.S. § 4-244.05 and this Section during business hours of the premises.

C.This Section is authorized by A.R.S. § 4-244.05.

History

• New section by final rulemaking at 20 A.A.R. 1207, effective 7/6/2014.

Ariz. Admin. Code § R19-1-325 Display of Warning Sign Regarding Consumption of Alcohol; Posting Notice Regarding Firearms

A. As prescribed under A.R.S. § 4-261, a licensed retailer shall post one or more warning signs, which are available without charge from the Department, regarding consumption of alcohol during pregnancy.

B. An on-sale retailer that wishes to prohibit possession of a weapon on the licensed premises shall post the notice described in A.R.S. § 4-229, which is available without charge from the Department,:

1. In a conspicuous location accessible to the general public, and

Immediately adjacent to the license posted as required under A.R.S. § 4-262 and R19-1-301.

C. This Section is authorized by A.R.S. §§ 4-229, 4-261 and 4-262.

History

• New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-1-326 Tapping Equipment

A. A wholesaler may furnish, install, and maintain tapping equipment for a licensed retailer for use with all spirituous liquor. The wholesaler shall maintain ownership of the tapping equipment that is provided free.

B. A wholesaler that sells tapping equipment listed in subsection (C) to a licensed retailer shall maintain a written record of the name and address of the licensed retailer to which the tapping equipment is sold, the equipment sold, and an invoice indicating payment was made. The wholesaler shall make these records available to the Department upon request.

C. A wholesaler may only sell the following items to a licensed retailer for cash at the market value for the items:

1. CO2 or other dispensing gas,

2. CO2 or other dispensing gas regulator,

3. CO2 or other dispensing gas filter,

4. Faucet or complete faucet standard,

5. Shank or bent tube,

6. Air distributor,

7. Blower assembly,

8. Switch;

9. Drip pan,

10. P.V.C. pipe;

11. Sanitizing materials,

12. Backflow device,

13. Coupling gasket,

14. Beer pump,

15. Tower,

16. Trunk line, and

17. Another item necessary to prepare and maintain a tapping-equipment system in proper operating condition.

D. A wholesaler may replace at no charge to a licensed retailer the following items:

1. Bonnet washer;

2. Friction ring;

3. Valve stem;

4. Hardware, unions, clamps, air tees, and screws;

5. Tapping devices, including tower heads; and

Single air and beer lines.

E. A wholesaler may clean a tapping-equipment system for a licensed retailer at no charge to the licensed retailer.

F. This Section is authorized by A.R.S. § 4-243(A)(4).

History

• New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-1-327 Farm Winery Sampling

A. A licensed farm winery that conducts sampling of the product of the licensed farm winery on the premises of an off-sale retailer or a retailer with off-sale privileges, as allowed by A.R.S. § 4-244.04, shall ensure that:

1. No more than six ounces of the product of the licensed farm winery is served to each consumer each day,

2. An employee of the licensed farm winery serves or supervises the serving of the product of the licensed farm winery, and

3. There is no violation of A.R.S. Title 4 or this Chapter.

B. As provided in A. R. S. § 4-205.04(C)(2), a licensed farm winery may provide samples of the product of the licensed farm winery on the premises of the farm winery.

C. This Section is authorized by A.R.S. § 4-244.04.

History

• New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2). Amended by final expedited rulemaking at 30 A.A.R. 389, effective 2/9/2024.

Article 4 REQUIRED NOTICES TO DEPARTMENT

Ariz. Admin. Code § R19-1-401 Notice of License Surrender or Application Withdrawal

A. A licensee that intends to surrender a license that is not a quota license or an applicant that intends to withdraw an application shall submit to the Department a file deactivation form prescribed by the Department.

B. The Department shall deem a license surrendered if all of the following apply:

1. The licensed premises are vacant during normal operating hours for at least 30 consecutive days;

2. The licensee fails to notify the Department of the licensee's intention to suspend the business authorized by the license, as required under A.R.S. § 4-203;

3. The Department is unable to contact the licensee using information available in the Department's records; and

4. The individual who informs the Department that the licensee has abandoned the license submits to the Department:

a. The license, if available; and

b. A signed and notarized statement indicating that to the best of the individual's knowledge, the licensed premises have been vacant during normal operating hours for at least 30 consecutive days and the licensee has abandoned the license and licensed premises.

C. The Department shall deny surrender of a license if the Department determines that:

1. It has notice that the licensee is delinquent in paying taxes to the state or a political subdivision,

2. A complaint is pending against the licensee alleging violation of A.R.S. Title 4 or this Chapter,

3. Ownership of the license is contested,

4. Civil proceedings involving the license are pending before any court, or

5. A hearing is pending before the Board.

D. This Section is authorized by A.R.S. §§ 4-203, 4-203.01, 4-205.02 and 4-210(I).

History

• New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-1-402 Registered Retail Agent: Notice of Change in Cooperative-purchase Agreement; List of Cooperative Members

A. As required under A.R.S. § 4-222(A), a retail agent registered under R19-1-203 shall provide written notice to the Department within 10 days after a licensee with whom the registered retail agent has a cooperative-purchase agreement terminates the registered retail agent's authority. The registered retail agent shall ensure that the notice identifies the licensee terminating the cooperative-purchase agreement and shall send a copy of the notice to all affected wholesalers.

B. A retail agent registered under R19-1-203 shall submit to the Department a copy of a new cooperative purchase agreement between the registered retail agent and another licensee within 10 days after entering into the cooperative-purchase agreement.

C. In addition to submitting a copy of each cooperative-purchase agreement to the Department, a retail agent registered under R19-1-203 shall submit to the Department a list that includes the following information regarding each licensee with which the registered retail agent has a cooperative-purchase agreement:

1. Name of licensee,

2. Address of licensed premises, and

3. License numbers of each licensee with which the registered retail agent has a cooperative-purchase agreement.

D. A registered retail agent shall report to the Department a change in any of the information submitted under subsection (C) within 10 days of the change.

E. This Section is authorized by A.R.S. § 4-222.

History

• New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-1-403 Hotel-motel or Restaurant Licensee: Notice of Change to Restaurant Facility

A. Under A.R.S. § 4-205.01(E) or 4-205.02(F), a hotel-motel or restaurant licensee that intends to alter the seating capacity or dimensions of a restaurant facility shall provide advance notice to the Department.

B. To provide the notice required under subsection (A), a hotel-motel or restaurant licensee shall complete and submit to the Department the form prescribed by the Department.

C. This Section is authorized by A.R.S. § 4-205.02(F).

History

• New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-1-404 Notice of Sampling on a Licensed Off-sale Retail Premises

A. A distiller, vintner, brewer, rectifier, blender, or other producer or wholesaler that intends to conduct a sampling under A.R.S. § 4-243(B)(3) or 4-244.04 on the licensed premises of a licensed off-sale retailer shall submit a Store Sampling Notice, which is a form available from the Department, to the Department at least 10 days before the sampling.

B. This Section is authorized by A.R.S. §§ 4-243(B)(3)(b) and 4-244.04.

History

• New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-1-405 Notice of Change in Status: Active or Nonuse

A. A licensee that ceases to manufacture, sell, or deal in spirituous liquor for 30 consecutive days shall submit notice to the Department, on a form that is available from the Department.

B. Except as provided in subsection (D), a licensee that puts a license on nonuse status by complying with subsection (A) may put the license on active status by submitting notice to the Department, on a form that is available from the Department.

C. If a license is on nonuse status for more than five months, the licensee shall pay the surcharge prescribed at A.R.S. § 4-203(G) when the license is returned to active status by complying with subsection (B).

D. Under A.R.S. § 4-203(G), if a license is on nonuse status for 36 months, the license automatically reverts to the state unless extended by the Director for good cause.

E. This Section is authorized by A.R.S. § 4-203.

History

• New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-1-406 Notice of Change in Manager

A. As required under A.R.S. § 4-202(C), a licensee shall provide notice to the Department and file a manager's agreement within 30 days after a change in manager.

B. If a licensee is designated as the manager, the licensee shall comply with subsection (A) when the licensee will be away from the licensed premises, while under normal operating conditions, for more than 30 days.

C. This Section is authorized by A.R.S. § 4-202(C).

History

• New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-1-407 Notice of Legal or Equitable Interest

A. To enable the Department to fulfill its responsibility under A.R.S. § 4-112(B)(3), a person that has a legal or equitable interest in a license issued under A.R.S. Title 4 and this Chapter shall file with the Department a statement of the interest. A person filing a statement of legal or equitable interest shall use a form that is available from the Department.

B. A person that has a legal or equitable interest in a license issued under A.R.S. Title 4 and this Chapter shall file with the Department an amended statement of the interest by complying with subsection (A) when:

1. Any of the information provided in a previous statement of interest changes, or

2. The person's legal or equitable interest terminates.

C. To enable the Department to fulfill its responsibility under A.R.S. § 4-112(B)(3), the Department shall periodically request that the holders of a legal or equitable interest in a license verify in writing to the Director that the statement on file with the Department is correct and accurate. If the holder of a legal or equitable interest in a license fails to respond within 30 days to the Department's request for verification of interest, the Department shall deem the interest terminated.

D. The Department shall provide notice to a person that files a statement of interest under subsection (A) when there is a disciplinary or compliance action or transfer affecting the license in which the person has an interest and shall allow the person to participate in any proceeding regarding the license.

E. This Section is authorized by A.R.S. § 4-112(B)(3).

History

• New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-1-408 Notice of Change in Business Name, Address, E-mail, or Telephone Number

A. A licensee shall not change the name of the business as specified on the license issued by the Department without first providing notice, using a form that is available from the Department.

B. The Department shall communicate with a licensee using the business name, U.S. Postal Service address on file with the Department, and e-mail, when provided. To ensure timely communication from the Department, a licensee shall provide the Department with current contact information for the licensee. When contact information for a licensee changes, the licensee shall submit a notice, using a form that is available from the Department.

C. If the name or U.S. Postal Service address of a business changes and notice is provided under subsection (A) or (B), the Department shall issue a replacement license that reflects the current name and U.S. Postal Service address of the business.

D. This Section is authorized by A.R.S. § 4-112(B)(1)(a).

History

• New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).

Article 5 REQUIRED RECORDS AND REPORTS

Ariz. Admin. Code § R19-1-501 General Recordkeeping

A. A licensee may maintain any record required under A.R.S. Title 4 or this Chapter in electronic form so long as the licensee is readily able to access and produce a paper copy of the electronic record.

B. A licensee shall maintain all invoices, records, bills, and other papers and documents relating to the purchase, sale, or delivery of spirituous alcohol for two years.

C. A hotel-motel or restaurant licensee shall maintain all invoices, records, bills, and other papers and documents relating to the purchase, sale, or delivery of food in the manner specified in R19-1-317 for two years.

D. A licensee shall make the invoices, records, bills, and other papers and documents maintained under subsections (B) and (C) available, upon request, to the Department for examination or audit. During an examination or audit and upon request, the licensee shall provide valid identification to the Department.

E. This Section is authorized by A.R.S. §§ 4-210(A)(7), and 4-119.

History

• New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2). Amended by final expedited rulemaking at 30 A.A.R. 389, effective 2/9/2024.

Ariz. Admin. Code § R19-1-502 On-sale Retail Personnel Records

A. As required by A.R.S. § 4-119, an on-sale retail licensee shall maintain a record of every employee of the business that includes the following information about the employee:

1. Full legal name,

2. Residential address,

3. Date of birth, and

4. Description of the employee's responsibilities.

B. A licensee shall maintain the records required under subsection (A) for two years after an individual ceases to be an employee of the business.

C. A licensee shall make the records maintained under subsection (A) available, upon request, to the Department for examination.

D. This Section is authorized by A.R.S. § 4-119.

History

• New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-1-503 Records Regarding Cooperative Purchases

A. A retail agent registered under A.R.S. § 4-222 and R19-1-203 shall maintain a copy of every cooperative-purchase agreement between the registered retail agent and another licensee for two years after termination of the cooperative-purchase agreement.

B. A retail agent registered under A.R.S. § 4-222 and R19-1-203 shall maintain in accordance with R19-1-501:

1. A copy of a cooperative purchase order placed with a wholesaler,

2. A copy of a cooperative-purchase invoice provided by a wholesaler, and

3. A record of the following regarding each cooperative member:

a. The kind and quantity of spirituous liquor ordered and delivered,

b. Monies received from the cooperative member, and

c. The date on and location at which spirituous liquor is delivered to the cooperative member.

C. A wholesaler that fills a cooperative-purchase order submitted by a retail agent registered under A.R.S. § 4-222 and R19-1-203 shall prepare and provide to the registered retail agent a master invoice of the cooperative purchase that shows the spirituous liquor purchased by each cooperative member and the amount of the discount provided for the cooperative purchase.

D. This Section is authorized by A.R.S. § 4-222.

History

• New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-1-504 Record of Delivery of Spirituous Liquor

A. A retail licensee having off-sale privileges, or A licensed farm winery under A.R.S. § 4-205.04(C)(9), common carrier under A.R.S. § 4-203.04(J), or a licensed craft distiller under A.R.S. § 4-205.10(C)(7) that delivers spirituous liquor, as authorized by A.R.S. § 4-203(J) and R19-1-315, shall complete a record of each delivery at the time of delivery. The licensee or common carrier shall ensure that the record provides the following information:

1. Name of licensee making the delivery,

2. Address of licensee making the delivery,

3. License number,

4. Date and time of delivery,

5. Address at which delivery is made,

6. Type and brand of spirituous liquor delivered, and

7. Printed name and signature of the individual making the delivery.

B. In addition to the information required under subsection (A), a retail licensee having off-sale privileges that delivers spirituous liquor, as authorized by A.R.S. § 4-203(J), shall obtain the following information about the individual accepting delivery of the spirituous liquor:

1. Name,

2. Date of birth,

3. Type of and number on the identification used to verify the individual's date of birth, and

4. The signature of the individual accepting delivery. The retail licensee making delivery may use an electronic signature system to comply with this subsection.

C. A licensed farm winery under A.R.S. § 4-205.04(C)(9), common carrier under A.R.S. § 4-203.04(J), or licensed craft distiller under A.R.S. § 4-205.10(C)(7) that delivers spirituous liquor may rely on an electronic signature system operated by the United Parcel Service or Federal Express to comply with the requirements in subsection (A).

D. A licensed retailer that delivers spirituous liquor under A.R.S. § 4-203.04(H) or a direct shipment licensee that ships wine under A.R.S. § 4-203.04(J) or A.R.S. § 4-205.04(C)(9), or licensed craft distiller that ships distilled spirits under A.R.S. § 4-205.10(C)(7) may rely on an electronic signature system operated by the United Parcel Service or Federal Express.

E. This Section is authorized by A.R.S. §§ 4-112(B)(1)(d), 4-203(J) and (M), 4-203.04(H) and (J), 4-205.04(C)(9), and 4-205.10(C)(7).

History

• New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2). Amended by final expedited rulemaking at 30 A.A.R. 389, effective 2/9/2024.

Ariz. Admin. Code § R19-1-505 Report of Act of Violence

A. As required under A.R.S. § 4-244(37), a licensee shall report an act of violence that occurs on the licensed premises.

B. A licensee shall report an act of violence that occurs on property immediately adjacent to the licensed premises if the act of violence involves a customer who is entering or leaving the licensed premises and if the licensee knew or reasonably should have known of the act of violence.

C. A licensee shall submit the report required under subsection (A) to the Department or a law enforcement agency. A licensee shall submit the report required under subsection (B) to the Department.

D. A licensee shall submit the report required under subsection (A) or (B) within seven days after the act of violence occurs.

E. A licensee that submits a report under subsection (A) or (B) to the Department shall use a form that is available from the Department and provide the following information to the best of the licensee's knowledge:

1. Name of licensee or licensee's agent;

2. License number;

3. Name of business;

4. Address of licensed premises;

5. Date of the report;

6. Date and time of the incident being reported;

7. A statement whether the police were summoned and if so:

a. Name of the police jurisdiction summoned,

b. Name of the individual who placed the call to the police,

c. Police report number, and

d. A statement whether an arrest was made;

8. A statement whether emergency services were summoned and if so, the name of the individual who placed the call for emergency services;

9. Names or description of participants in the incident;

10. Names of individuals injured in the incident and a description of the injury;

11. Detailed description of the incident; and

12. Name, title, and signature of the individual preparing the report affirming that the information provided is true and accurate to the best of the individual's knowledge.

F. This Section is authorized by A.R.S. § 4-244(37).

History

• New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).

Article 6 VIOLATIONS; HEARINGS; DISCIPLINE

Ariz. Admin. Code § R19-1-601 Appeals and Hearings

A. Under A.R.S. § 4-210.02(A), a decision of the Director, except as provided under A.R.S. § 4-203.01(E), is not final until it is appealed to and ruled on by the Board or until the time for appeal expires.

B. As required by A.R.S. § 4-210(H), the Department, Board, or a panel of the Board established under A.R.S. § 4-111(D) shall ensure that all hearings are conducted according to the procedures at A.R.S. Title 41, Chapter 6, Article 10.

C. This Section is authorized by A.R.S. § 4-210(H).

History

• New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-1-602 Actions during License Suspension

A. If the Director suspends a license issued under A.R.S. Title 4 and this Chapter, the licensee:

1. Shall not take any action on or about the business premises for which a license is required under A.R.S. Title 4 or this Chapter, and

2. Shall prominently display the notice of suspension on the business premises during the suspension.

B. This Section is authorized by A.R.S. § 4-244(1).

History

• New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-1-603 Seizure of Spirituous Liquor

A. If a peace officer has probable cause to believe that a spirituous liquor is being or is intended to be used in a manner that is inconsistent with a provision of A.R.S. Title 4 or this Chapter, the peace officer shall seize the spirituous liquor.

B. This Section is authorized by A.R.S. § 4-244.05(F).

History

• New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-1-604 Closure Due to Violence

A. If the Director determines that an act of violence is apt to occur at a licensed premises and that action is needed to protect the public health, safety, or welfare, the Director shall order that:

1. The licensee closes the doors of the licensed premises to the public;

2. No spirituous liquor be sold or served to any individual on the licensed premises; and

3. Only the licensee, employees of the licensee, and peace officers are allowed on the licensed premises.

B. This Section is authorized by A.R.S. § 4-210.

History

• New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).

Article 7 STATE LIQUOR BOARD

Ariz. Admin. Code § R19-1-701 Election of Officers

A. The Board shall elect a chairperson and vice chairperson in February of each year.

B. If a vacancy occurs in the chairperson or vice chairperson office, the Board shall hold an election for the vacant office at its next scheduled meeting.

C. This Section is authorized by A.R.S. § 4-111(C).

History

• New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-1-702 Determining Whether to Grant a License for a Certain Location

A. To determine whether public convenience requires and the best interest of the community will be substantially served by issuing or transferring a license at a particular unlicensed location, local governing authorities and the Board may consider the following criteria:

1. Petitions and testimony from individuals who favor or oppose issuance of a license and who reside in, own, or lease property within one mile of the proposed premises;

2. Number and types of licenses within one mile of the proposed premises;

3. Evidence that all necessary licenses and permits for which the applicant is eligible at the time of application have been obtained from the state and all other governing bodies;

4. Residential and commercial population of the community and its likelihood of increasing, decreasing, or remaining static;

5. Residential and commercial population density within one mile of the proposed premises;

6. Evidence concerning the nature of the proposed business, its potential market, and its likely customers;

7. Effect on vehicular traffic within one mile of the proposed premises;

8. Compatibility of the proposed business with other activity within one mile of the proposed premises;

9. Effect or impact on the activities of businesses or the residential neighborhood that might be affected by granting a license at the proposed premises;

10. History for the past five years of liquor violations and reported criminal activity at the proposed premises provided that the applicant received a detailed report of the violations and criminal activity at least 20 days before the hearing by the Board;

11. Comparison of the hours of operation at the proposed premises to the hours of operation of existing businesses within one mile of the proposed premises; and

12. Proximity of the proposed premises to licensed childcare facilities as defined by A.R.S. § 36-881.

B. This Section is authorized by A.R.S. § 4-201(I).

History

• New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-1-703 Rehearing or Review of a Decision

A. As permitted under A.R.S. § 41-1092.09, a party may file with the Board a motion for rehearing or review of a decision issued by the Board.

B. A party may amend a motion for rehearing or review at any time before the Board rules on the motion.

C. The Board may grant a rehearing or review for any of the following reasons materially affecting a party's rights:

1. Irregularity in the proceedings or any order or abuse of discretion that deprived the moving party of a fair hearing;

2. Misconduct of the Director or Board, Department staff, or an administrative law judge;

3. Accident or surprise that could not have been prevented by ordinary prudence;

4. Newly discovered material evidence that could not, with reasonable diligence, have been discovered and produced at the hearing;

5. Excessive or insufficient penalty;

6. Error in the admission or rejection of evidence or other errors of law occurring at the hearing or during the progress of the proceedings; and

7. The findings of fact or decision is not justified by the evidence or is contrary to law.

D. The Board may affirm or modify a decision or grant a rehearing or review to all or some of the parties on all or some of the issues for any of the reasons listed in subsection (C). The Board shall specify with particularity the grounds for an order modifying a decision or granting a rehearing or review. If a rehearing or review is granted, the rehearing or review shall cover only the matters specified in the order.

E. Not later than 30 days after the date of a decision and after giving the parties notice and an opportunity to be heard, the Board may, on its own initiative, order a rehearing or review of the decision for any reason it might have granted a rehearing or review on motion of a party. The Board may grant a motion for rehearing or review, timely served, for a reason not stated in a motion. The Board shall specify with particularity the grounds on which a rehearing or review is granted under this subsection.

F. When a motion for rehearing or review is based upon affidavits, they shall be served with the motion. An opposing party may, within 15 days after service, serve opposing affidavits. This period may be extended by the Board for five additional days for good cause or by written stipulation of the parties. Reply affidavits may be permitted.

G. If, in a particular decision, the Board makes a specific finding that the immediate effectiveness of the decision is necessary for preservation of the public health, safety, or welfare and that a rehearing or review of the decision is impracticable, unnecessary, or contrary to the public interest, the decision may be issued as a final decision without an opportunity for a rehearing or review.

H. This Section is authorized by A.R.S. §§ 4-210.02 and 41-1092.09.

History

• New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-1-704 Submitting Documents to the Board

A. To facilitate the Board's review of documents submitted to it, a party shall submit documents to the Board in printed form and:

1. In an electronic format directed by the Board, or

2. By means of a removable data-storage device such as a compact disc or flash drive.

B. To provide the Board with time to consider adequately documents requiring its action, the following deadlines apply:

1. An applicant, local governing body, or aggrieved party that wishes to submit information regarding an application shall submit the information at least 15 calendar days before the meeting at which the Board will consider the application;

2. An applicant, local governing body, or aggrieved party that wishes to rebut information submitted under subsection (B)(1) shall submit the rebuttal information within five calendar days before the meeting at which the Board will consider the application; and

3. An appellant shall submit a brief at least 21 calendar days before the meeting at which the Board will consider the appeal.

C. A party who is unable to submit documents in an electronic format or by means of a removable data storage device may ask the Board for an exemption from the requirement in subsection (A).

D. This Section is authorized by A.R.S. §§ 4-112(A)(2) and 4-201(E).

History

• New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-1-705 Judicial Review

A. A party may file a complaint for judicial review of a final decision of the Board under A.R.S. § 12-901 et seq.

B. A party that files a complaint for judicial review of a final decision of the Board shall serve a copy of the complaint for judicial review on the Director at the Department's office in Phoenix, Arizona.

C. This Section is authorized by A.R.S. §§ 4-211 and 12-901e t seq.

History

• New Section made by final rulemaking at 19 A.A.R. 1338, effective July 6, 2013 (Supp. 13-2).

Article 8 LEASING OFF-SALE PRIVILEGES

Ariz. Admin. Code § R19-1-801 Leasing Off-sale Privileges: Preliminary Considerations

A. Only a restaurant licensee may enter an agreement to lease the off-sale privileges of another licensee.

B. A restaurant licensee may enter an agreement with only a bar or liquor store licensee to lease the bar or liquor store licensee's privilege to sell mixed cocktails, as defined at A.R.S. § 4-101, for consumption off the licensed premises.

C. A restaurant licensee may enter an agreement with only a bar, beer and wine bar, or liquor store licensee to lease the bar, beer and wine bar, or liquor store licensee's privilege to sell spirituous liquor other than mixed cocktails for consumption off the licensed premises.

D. When the Director approves an agreement under subsection (B), the bar or liquor store licensee retains the bar or liquor store licensee's privilege to sell mixed cocktails for consumption off the licensed premises during the term of the lease.

E. When the Director approves an agreement under subsection (C), the Director transfers the off-sale privilege of the bar, beer and wine bar, or liquor store regarding spirituous liquor other than mixed cocktails to the restaurant licensee for the term of the lease and the bar, beer and wine bar, or liquor store licensee shall stop the off-sale of spirituous liquor other than mixed cocktails.

F. A restaurant licensee that wishes to enter a privileges lease agreement under subsection (B) or (C) shall apply to the Department under R19-1-802 or R19-1-803 and obtain the Director's approval.

G. This Section is authorized by A.R.S. §§ 4-203.06 and 4-203.07.

History

• New Section made by final exempt rulemaking at 28 A.A.R. 3436, effective 10/13/2022.

Ariz. Admin. Code § R19-1-802 Leasing an Off-sale Privilege regarding Mixed Cocktails

A. Applicant responsibilities. To apply under A.R.S. § 4-203.06 to lease the privilege of a bar or liquor store licensee to sell mixed cocktails for consumption off the licensed premises, a restaurant licensee shall submit to the Department:

1. An application form that is available from the Department at its office or on the Department's website;

2. A non-refundable application fee of $200; and

3. A privileges lease form, which is available from the Department at its office or on the Department's website, signed and dated by the restaurant licensee.

B. Director responsibilities. The Director shall:

1. Within 30 days after receiving an application under subsection (A), approve or deny the application based on the location or history of the applicant. If the Director denies the application, the Director shall provide to the restaurant licensee the notice required under R19-1-209(H) ;

2. Randomly select a bar or liquor store licensee to enter a privileges lease agreement with the approved restaurant licensee to lease the bar or liquor store licensee's privilege to sell mixed cocktails for consumption off the licensed premises. A bar or liquor store licensee is not required to opt-in but may opt-out of being selected by the Director. The bar or liquor store licensee selected may be located in the same or a different county from the county of the restaurant licensee;

3. Establish a lease amount to be paid by the restaurant licensee that fairly recognizes and is derived from the commercial value of the privilege being leased; and

4. Act as a third-party facilitator of the funds paid under subsection (C)(1) to ensure the lease payment is made to the bar or liquor store licensee.

C. Restaurant licensee responsibilities. A restaurant licensee whose application is approved under subsection (B)(1) shall:

1. Pay in full to the Department the lease amount established under subsection (B)(3) when the application is approved under subsection (B)(1);

2. Comply with all Department statutes and rules including:

a. A.R.S. § 4-203(S)(5) regarding the sale of menu food items, as defined at A.R.S. § 4-101;

b. A.R.S. § 4-205.02(M) regarding the percentage of gross revenue derived from the sale of food; and

c. A.R.S. § 4-206.01(G) regarding the percentage of spirituous liquor sales derived under the privileges lease agreement; and

3. If desired, apply to the Department for renewal of the privileges lease agreement. To renew the privileges lease agreement, a restaurant licensee shall:

a. Submit to the Department a renewal application form that is available from the Department at its office or on the Department's website;

b. Pay a renewal fee that includes renewal of the restaurant license and is specified on the Department's website; and

c. Pay in full the lease amount established under subsection (B)(3).

D. This Section is authorized by A.R.S. § 4-203.06. Under A.R.S. § 4-203.06(A), this Section is not applicable on and after January 1, 2026.

History

• New Section made by final exempt rulemaking at 28 A.A.R. 3436, effective 10/13/2022.

Ariz. Admin. Code § R19-1-803 Leasing an Off-sale Privilege regarding Spirituous Liquor other than Mixed Cocktails

A. Applicant responsibilities. To apply under A.R.S. § 4-203.07 to lease the privilege of a bar, beer and wine bar, or liquor store licensee to sell spirituous liquor other than mixed cocktails for consumption off the licensed premises, a restaurant licensee shall submit to the Department within one of the lease windows established by the Department:

1. An application form that is available from the Department at its office or on the Department's website;

2. A non-refundable application fee of $200; and

3. A privileges lease form that is available from the Department at its office or on the Department's website; and:

a. Is signed and dated by both the restaurant licensee and the bar, beer and wine bar, or liquor store licensee, both of which are located in the same county; and

b. Specifies the lease amount to which the parties agree, which may be the amount determined by the Department under A.R.S. § 4-203.07(C).

B. Director responsibilities. The Director shall:

1. Establish and make available on the Department's website:

a. At least four windows throughout a calendar year during which leases may be made;

b. Suggested lease amounts under the terms specified at A.R.S. § 4-203.07(C).

2. Within 30 days after receiving an application under subsection (A), approve or deny the application:

a. If the Director denies the application, the Director shall provide to the restaurant licensee the notice required under R19-1-209(H) and

b. If the Director approves the application, the Director shall transfer to the restaurant licensee the privilege of the bar, beer and wine bar, or liquor store licensee to sell spirituous liquor other than mixed cocktails for consumption off the licensed premises; and

3. Act as a third-party facilitator of the funds paid under subsection (C)(1) to ensure the lease payment is made to the bar, beer and wine bar, or liquor store licensee.

C. Restaurant licensee responsibilities. A restaurant licensee whose application is approved under subsection (B)(2) shall:

1. Pay in full to the Department the lease amount established under subsection (A)(3)(b) when the privileges lease agreement is made;

2. Comply with all Department statutes and rules including:

a. A.R.S. § 4-205.02(M) regarding the percentage of gross revenue derived from the sale of food, and

b. A.R.S. § 4-206.01(G) regarding the percentage of spirituous liquor sales derived under the privileges lease agreement; and

3. If desired, apply to the Department for renewal of the privileges lease agreement. To renew the privileges lease agreement, a restaurant licensee shall:

a. Submit to the Department a renewal application form that is available from the Department at its office or on the Department's website;

b. Submit to the Department an updated privileges lease form that is signed and dated by both the restaurant licensee and the bar, beer and wine bar, or liquor store licensee and specifies the lease amount to which the parties agree;

c. Pay a renewal fee that includes renewal of the restaurant license and is specified on the Department's website; and

d. Pay in full the lease amount established under subsection (C)(3)(b).

D. This Section is authorized by A.R.S. § 4-203.07.

History

• New Section made by final exempt rulemaking at 28 A.A.R. 3436, effective 10/28/2022.

Ariz. Admin. Code § R19-1-804 Registration of an Alcohol Delivery Contractor

A. To register as an alcohol delivery contractor, as defined at A.R.S. § 4-101, an individual who is qualified under R19-1-201 shall submit to the Department:

1. An application form that is available from the Department at its office or on the Department's website;

2. Documentation, as described in A.R.S. § 41-1080(A), of U.S. citizenship or alien status indicating presence in the U.S. is authorized under federal law; and

3. A non-refundable application fee of $100.

B. Within 30 days after receiving an application under subsection (A), the Director shall approve or deny the application. If the Director denies the application for good cause, the Director shall provide the notice required under R19-1-209(H).

C. If required by the Director, a newly registered alcohol delivery contractor shall complete an approved training course regarding knowledge of liquor law and pass any required examination.

D. Operational limits for delivery of spirituous liquor. A registered alcohol delivery contractor shall ensure that delivery of spirituous liquor as authorized under A.R.S. § 4-203(T):

1. Is made only to an individual who is at least 21 years old;

2. Is made only after an inspection of identification that complies with A.R.S. § 4-241(K) shows the individual accepting delivery of the spirituous liquor is of legal drinking age;

3. Is made on the same business day, as defined at A.R.S. § 4-203(T), as the order for delivery of spirituous liquor is placed;

4. Is not made to an intoxicated or disorderly individual; and

5. Is not made to the licensed premises of a licensed retailer.

E. A registered alcohol delivery contractor shall refuse to complete a delivery if the registered alcohol delivery contractor believes the delivery may constitute a violation of A.R.S. Title 4 or this Chapter.

F. To renew a registration as an alcohol delivery contractor, the registered alcohol delivery contractor shall, by April 30 of each year:

1. Submit to the Department a renewal application form that is available from the Department at its office or on the Department's website; and

Pay the renewal fee of $25.

G. This Section is authorized by A.R.S. §§ 4-203(T) and 4-205.13.

History

• New Section made by final exempt rulemaking at 28 A.A.R. 3436, effective 10/13/2022.

Chapter 2 ARIZONA RACING COMMISSION

Article 1 HORSE RACING

Ariz. Admin. Code § R19-2-101 Power and Authority

A.All powers of the Department and Commission not specifically defined in this Chapter are reserved to the Department and Commission under the law creating the Department and Commission and specifying its powers and duties.

B.The jurisdiction of the Department and Commission over matters covered by A.R.S. Title 5, Chapter 1 and this Chapter is continuous throughout the year.

C. A.R.S. Title 5, Chapter 1, this Chapter, and the orders of the Department and Commission take precedence over the conditions of a race or the conditions of a race meet.

D.The Director may sustain, reverse, or modify any penalty or decision imposed by the stewards.

E.The Commission may sustain, reverse, or modify any penalty or decision imposed by the Director.

History

• Adopted effective August 5, 1983 (Supp. 83-4). Editor spelling correction to subsection (C) (Supp. 88-4). R19-2-101 recodified from R4-27-101 (Supp. 95-1). Amended by final rulemaking at 19 A.A.R. 3412, effective November 30, 2013

Ariz. Admin. Code § R19-2-102 Definitions

The definitions in A.R.S. § 5-101 apply to this Chapter. Additionally, unless the context requires otherwise, in this Article:

1. "Added money" means money a permittee adds to the nominating and starting fees in a race.

2. "Age" means the age of a horse as computed from the first day of January in the year in which the horse is foaled.

3. "Allowance race" means an overnight race for which a horse's eligibility and weight to be carried are determined according to specified conditions that include age, sex, earnings, and number of wins.

4. "Also eligible" means a horse, properly entered for a race, which is not drawn for inclusion in the race but becomes eligible according to preference or lot if an entry is scratched before the scratch-time deadline.

3. 5. "Authorized agent" means a person appointed under R19-2-106(G).

6. "Breakage" means net pool minus payout.

4. 7. "Breeder" means the owner or lessee of a horse's dam at the time the horse is foaled.

5. 8. "Breeding place" means the place of birth of a horse.

9. "Business day" means a day on which live racing is conducted or a day on which entries are taken.

10. "Carryover" means non-distributed pool monies that are retained and added to a corresponding pool in accordance with this Chapter.

11. "Claiming race" means a horse race in which each owner declares in advance the price at which the owner's horse will be offered for sale after the race.

6. Commission" means the Arizona Racing Commission.

"Complaint" means a written allegation of a violation of A.R.S. Title 5, Chapter 1, or this Chapter.

"Contest" means a competitive racing event on which pari-mutuel wagering is conducted.

7. Course" means the track over which horses race.

8. 14. "Declaration" means the act of withdrawing an entered horse from a race.

9. Department" means the Arizona Department of Racing.

10. Director" means the Director of the Arizona Department of Racing.

11. 15. "Entrance fee" means a fee set by a permittee that must be paid to make a horse eligible for a stakes race.

12. 16. "Entry" means, according to its context, either:

a. A horse eligible and entered in a race, or

b. Two or more horses that are entered in a race as a single wagering unit and are:

i. Owned, in whole or in part, by the same owner; or

ii. Trained by a trainer who owns an interest in another horse in the race.

13. 17. "Equipment" means whips, blinkers, tongue straps, muzzles, hoods, nose bands, shadow rolls, martingales, breast plates, bandages, boots, plates (shoes), and all other paraphernalia that is or might be used on or attached to a horse while racing.

14. 18. "Field" means:

a. The entire group of horses in a race; or

b. Two or more starting horses running as a single wagering unit when there are more starting horses in a race than positions of the tote.

15. 19. "Foreign substance" means any drug, medicine, metabolite, or other substance that does not exist naturally in an untreated horse and that may have a pharmacological effect on the racing performance of a horse or may affect sampling or testing procedures. Foreign substances include but are not limited to stimulants, depressants, local anesthetics, narcotics, and analgesics.

16. 20. "Foul" means any action by a horse or jockey that interferes with another horse or jockey in the running of a race.

17. 21. "Grounds" means the entire area used by a permittee to conduct a race meet including, but not limited to, the track, grandstand, stables, concession areas, and parking facilities.

22. "Handicap" means a race in which the weight to be carried by each entered horses is adjusted to equalize each horse's chance of winning.

18. 23. "Horse" means a filly, mare, colt, horse, gelding, and ridgling except when referring to sex, "horse" means a male that is five years or older and retains all reproductive organs.

a. In general when referring to sex, a horse is an entire male 5 years old or older.

b. Ridgling shall mean a half-castrated male horse or a horse with one or both organs of reproduction absent from the sac.

24. "Hurdle race" means a race over a track in which jumps or hurdles are used.

25. "Immediate," for the purpose of suspension or revocation of a license issued under this Chapter, means the first date that the suspension or revocation does not negatively impact another licensee, as determined by the Department.

26. "Inactive person" means an individual who has never been licensed or whose license has expired, been revoked, or been suspended for more than 30 days.

27. "Inquiry" means an investigation of possible interference in a contest conducted by the stewards before the stewards declare the result of the contest official.

28. "In-today horse" means a horse that is entered and has drawn a position to run on one race day and also is entered for the next race day.

19. 29. "Lawfully issued prescription" means a prescription-only drug, as defined at A.R.S. § 13-3401, obtained directly from or under a valid prescription order written by a licensed physician acting in the course of professional practice.

20. 30. "Lessee" or "lessor" means a person who leases a horse for racing purposes.

21. 31. "Maiden" means a horse that at the time of starting has never won a race on the flat in any country on a recognized track or that was disqualified after finishing first.

32. "Match race" means a race between two or more horses, each of which is the property of different owners, on terms agreed to by the owners and approved by the Department.

22. Meeting" means the entire period for which a permit to conduct racing has been granted to any permittee by the Commission.

33. "Minus pool" means there is not enough money, after deductions of state tax and statutory commissions, to pay the legally prescribed minimum on each winning wager.

34. "Net pool" means the sum of all wagers on a race minus refundable wagers and statutory commissions.

35. "Net take" means the amount of a track's commission minus allowed deductions.

23. 36. "Nominating fee" means a fee set by a permittee that must be paid to make a horse eligible for a stakes or handicap race.

24. 37. "Nomination" means naming a horse or its foal in utero to compete in a specific race or series of races, eligibility for which may require paying a fee at the time of naming.

25. 38. "Nominator" means the person in whose name a horse is nominated for a stakes or handicap race.

39. "Official laboratory" means the facility with which the Department contracts under A.R.S. § 5-105(A).

40. "Official race program" means a published listing of all contests and contestants for a specific performance.

26. 41. "Off time" means the moment at which, on signal of the starter, the horses break and run.

42. "Overnight race" means a race for which entries close 96 or fewer hours before the time set for the first race of the day on which the race is to be run.

27. 43. "Overpayment" means the amount by which purses paid exceed the amount due horsemen based on the net take and breakage.

28. 44. "Owner" means any person possessing all or part of the legal title to a horse.

45. "Payout" means the amount of money payable to winning wagers.

"Performance" means a schedule of races run consecutively as one program.

29. 47. "Place" means a horse finishes in one of the first three positions in a race.

"Pool" means the sum of all wagers on a race.

30. 49. "Post position" means the position assigned to a horse for the start of a race.

31. 50. "Post time" means the time set for horses in a race to arrive at the starting point.

51. "Preferred list" means a record of a horse with a prior right to starting usually because the horse was previously entered in a race that did not fill with the required minimum number of horses.

52. "Program trainer" means a licensed trainer identified in the official race program as the trainer of a horse that is actually under the control of and trained by another individual who may or may not hold a trainer's license in any jurisdiction and who is not identified in the official race program as the trainer of the horse.

32. 53. "Prohibited substance" means any substance regulated by A.R.S. Title 13, Chapter 34.

54. "Purse" means the total dollar amount for which a race is contested.

55. "Purse race" means a race for money or other prize to which owners of horses engaged in the race do not contribute an entry fee.

56. "Quarter race" means a race on the flat of 1,000 yards or less.

33. 57. "Race" means a contest among horses for purse, stakes, premium, or wager for money, that is run in the presence of racing officials of the track and a Department representative.

a. Claiming race" means a race in which any horse entered may be claimed in conformity with these rules.

b. "Graded quarter race" means a quarter race for which horses are classified by the racing secretary on the basis of prior racing times and past performances.

c. "Handicap" means a race in which weights to be carried by the entered horses are adjusted by a handicapper for the purpose of equalizing their respective chances of winning.

d. "Hurdle race" means a race over a course in which jumps or hurdles are used.

e. "Match race" means a race between two or more horses, each the property of different owners, on terms agreed upon by the owners and approved by the Department.

f. "Overnight race" means a race for which entries close 96 hours or less before the time set for the first race of the day on which such race is to be run.

g. "Purse race" means a race for money or other prize to which the owners of the horses engaged in the race do not contribute an entry fee.

h. "Quarter race" means a race on the flat at 870 yards or less.

i. "Race on the flat" means a race over a course in which no jumps or other obstacles are placed.

j. "Stakes race" means a race in which any monies are to be deposited by the owners of the horses engaged in the race, including a race in which money or other prize is added, and in which nominations must close more than 72 hours before the time for the first race of the day on which such stakes race is to be run.

58. "Race meet" means the period for which a permit to conduct racing is granted to a permittee by the Commission.

59. "Race on the flat" means a race over a track on which no jumps or other obstacles are placed.

34. 60. "Racing Regulation Fund" means the fund established under A.R.S. § 5-113.01 and administered by the Department to receive funding for regulation of racing from various pari-mutuel racing industry sources.

61. "Racing secretary" means the official who drafts conditions of races.

35. 62. "Recognized track" means a track where pari-mutuel wagering is authorized by law or that is recognized by the American Quarter Horse Association.

63. "Restricted area" means an enclosed portion of a permittee grounds to which access is limited to licensees whose occupation or participation requires access.

64. "Result" means the part of the official order of finish used to determine the pari-mutuel payout of pools for each contest.

65. "Ridgling" means a male horse that has one or both testicles absent from the scrotum.

36. 66. "Ruled off" means the act of:

a. Barring a licensee from the grounds of a permittee and denying the licensee all racing privileges; or

b. Preventing a horse from being entered because the stewards have determined that preventing the horse from racing is in the best interest of the health, safety, and welfare of licensees and the state.

37. 67. "Scratch" means to withdraw an entered horse from a race after overnight entries have been closed.

38. 68. "Scratch time" means the time set by the permittee for withdrawing entered horses from the races of a particular day.

69. "Stakes race" means a race for which the owner of an entered horse is required to pay a fee to which the track may add money or other prize to make up the total purse and for which nominations close more than 72 hours before the time for the first race of the day on which the stakes race is to be run.

"Starter race" means an allowance or handicap race restricted to horses that have previously started for a specified claiming price or less and for which the racing secretary may establish other conditions.

39. 71. "Starting fee" means the amount of money, specified by the conditions of the race and set by the permittee, which must be paid by a horse's owner for the horse to start in a race.

40. 72. "Starting horse" means a horse that leaves the paddock for the post, excluding:

a. A horse subsequently excused by the stewards, or

b. A horse for which the starting gate stall doors do not open in front of the horse at the time the starter dispatches the field.

73. "Steward" means an official of a race meet responsible for enforcing A.R.S. Title 5, Chapter 1 and this Chapter.

41. 74. "Subscription" means the fee paid by the owner to nominate a horse for a stakes race.

42. 75. "Supplemental fee" means a fee set by a permittee that must be paid by a horse's owner at a time prescribed by the permittee to make the horse eligible for a stakes race after the time for nominations is closed.

43. 76. "Suspended" means that a privilege granted by the officials of a race meet or by the Commission or Department has been temporarily withdrawn.

44. 77. "Sustaining fees" mean fees that must be paid periodically, as prescribed by the conditions of a race, to keep a horse eligible for the race.

78. "TCO₂" means total carbon dioxide.

45. 79. "Tote or totalisator" means the machines from which pari-mutuel tickets are sold and the board on which the approximate odds for a race are posted.

46. 80. "Track" means the course over which a race takes place.

47. 81. "Trainer" means a person employed by an owner or lessee to condition a horse for racing.

48. 82. "Underpayment" means the amount by which the amount due horsemen, based on the net take and breakage, exceeds the amount of purses paid.

49. 83. "Walkover" means a race in which there are not two or more horses of separate interest sent to post.

50. 84. "Weight" means the standard weight described in R19-2-118.

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended paragraph (15), added new paragraphs (26) and (45) and renumbering accordingly effective June 6, 1986 (Supp. 86-3). Amended by adding paragraphs (19) and (32) and renumbering accordingly effective November 30, 1988 (Supp. 88-4). Amended effective March 20, 1990 (Supp. 90-1). R19-2-102 recodified from R4-27-102 (Supp. 95-1). Amended by exempt rulemaking at 17 A.A.R. 1484, effective July 20, 2011 (Supp. 11-3). Amended by final rulemaking at 19 A.A.R. 3412, effective November 30, 2013

Ariz. Admin. Code § R19-2-103 Permit Applications

A. A person or persons, associations, or corporations desiring to hold or conduct a horse racing meeting within the state of Arizona shall file with the Commission its permit application that contains the information required in A.R.S. § 5-107 in paper copy and in an electronic medium. All electronic media submissions shall be compatible with the Department's computer system and software. If any addendum to the permit application cannot be submitted in an electronic medium, the applicant shall submit the addendum in a paper copy.

B. The Department shall not issue a permit until the applicant has furnished evidence of compliance with A.R.S. § 23-901 et seq. (Workers' Compensation).

C. Permit applicants shall submit to the Commission the names of the proposed track officials at least 60 days prior to the beginning of their meet, along with a short biographical sketch of each official not previously licensed in the same capacity by the Department.

D. A permit application shall specify the number of races to be run on a daily basis.

E. Racing shall be conducted only on those days granted by permit.

F. Permit Application Time-frames.

1. Administrative completeness review time-frame.

a. Within 728 days after receiving an application package, the Department shall determine whether the application package contains the information required by subsections (A), (B), (C), and (D).

b. If the application package is incomplete, the Department shall issue a written notice that specifies what information is required and return the application. If the application package is complete, the Department shall provide a written notice of administrative completeness.

c. The Department shall deem an application package withdrawn if the applicant fails to file a complete application package within 180 days of being notified that the application package is incomplete.

2. Substantive review time-frame. Within 30 days after receipt of a complete application package, the Commission, with the recommendation of the Department, shall determine whether the applicant meets all substantive requirements and issue a written notice granting or denying the permit.

3. Overall time-frame. For the purpose of A.R.S. § 41-1073, the Department establishes the following time-frames for issuing a permit.

a. Administrative completeness review time-frame: 728 days;

b. Substantive review time-frame: 30 days;

c. Overall time-frame: 758 days.

4. Renewal and temporary permit time-frames. The administrative completeness review time-frame is 30 days, the substantive review time-frame is 30 days, and the overall time-frame is 60 days, excluding time for mailing. The renewal or temporary permit is considered administratively complete unless the Department issues a written notice of deficiencies to the applicant. Temporary permits are valid until a full permit is awarded or until the Commission revokes the temporary permit.

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended effective March 20, 1990 (Supp. 90-1). R19-2-103 recodified from R4-27-103 (Supp. 95-1). Amended effective January 6, 1998 (Supp. 98-1). Amended by final rulemaking at 11 A.A.R. 5534, effective February 4, 2006 (Supp. 05-4).

Ariz. Admin. Code § R19-2-104 Permittee Responsibilities

A. A permittee shall maintain the grounds in a neat, clean, and safe condition. If a steward determines that a permittee is not in compliance with this Section, the steward shall require that the permittee immediately bring the grounds into compliance.

B. The permittee shall prevent any person, corporation, firm, or association not licensed by the Department from performing any act at its track which requires a license under A.R.S. Title 5, Chapter 1, or this Article.

C. Each permittee department head shall see that the permittee department head's employees are licensed and furnish a list of the employees upon request.

D. A permittee shall take all steps necessary to deny the privileges of a license to anyone whose license has been revoked or suspended and to keep such a person off the grounds of the permittee and to prevent a person who has been ruled off from entering the grounds of the permittee.

E. A permittee or its employees shall not obstruct a representative of the Department performing the representative's duties.

F. A permittee shall not knowingly allow on its grounds any betting or other operations in contravention of any law of the state of Arizona or of the United States.

G. The permittee shall immediately report all observed violations of any racing regulation or statute to the Department and shall cooperate with the Department and with state, federal, and local authorities in investigations of alleged violations.

H. A permittee shall provide the following services at the track:

1. A horse ambulance, approved by the Department, for the removal of crippled animals from the track.

2. A physician or emergency paramedic certified under A.R.S. § 36-2205 on duty during racing hours.

3. An ambulance, available during morning works and racing hours.

4. First aid quarters, available during morning works and racing hours.

A detention paddock (test barn) where all winners and other horses selected by the stewards are taken and kept under the supervision of the Department veterinarian until saliva, urine, blood, and other samples have been obtained.

6. An adequate security force whose duties include:

a. Maintaining order.

b. Excluding from the grounds all handbooks, touts, and operators of gambling devices.

c. Excluding from the grounds all persons ruled off by the stewards or the Department.

d. Excluding from the grounds all persons not eligible for a license under A.R.S. § 5-108.

e. Immediately reporting to the stewards any licensee who, while on the premises of the permittee, creates a disturbance, is intoxicated, interferes with any racing operation, or acts in an abusive or threatening manner to any racing official or other person.

7. A security guard stationed at the stable area entrance whose duties include:

a. Denying entrance to all persons not holding a license or credentials issued by the Department or a Departmental pass issued by the permittee.

b. Allowing any person seeking employment within the stable area to have access to that area for a period of one day, provided that:

i. The person is given a numbered card.

ii. A list of recipients of the numbered cards is provided to the track office of the Department upon request.

iii. The numbered card is retrieved by the security guard when the person leaves the stable area.

iv. The track office of the Department is notified of the retrieval.

8. A furnished office, including utilities and necessary office equipment, for the exclusive use of Department employees and officials.

9. A uniformed security official approved by the Department, on duty in the Department test barn during its regular business hours. The official shall provide security and monitor the collection procedure and sealing of samples taken from the horses.

10. A copy of all tip sheets offered for sale in the parking area or elsewhere on the grounds of the permittee, furnished daily to the stewards not later than three hours before first post.

I. A person shall not sell tip sheets, pamphlets, or other printed matter purporting to predict the outcome of a race other than official programs, the Daily Racing Form, and newspapers in the betting area.

J. Wagering shall be conducted upon the grounds of a permittee only under the pari-mutuel method as provided by statute and this Article and by the use of such mechanical or other equipment as the Department may require. Bookmaking or betting other than by the pari-mutuel method is prohibited.

K. A permittee shall not allow the official racing of horses on any track under its control except as provided by subsection (P) below unless:

1. The conditions of the race have been written by the racing secretary at the meeting.

2. The entries have been made in accordance with the requirements set forth in R19-2-113.

3. The race programmed as a part of a regular racing card conducted under the pari-mutuel system.

L. On a daily basis, and as soon as the entries have been closed and compiled and the declarations have been made, the permittee posts a list of the entries and declarations in a conspicuous place.

M. A permittee shall print on a daily racing program a list of all officials and directors of the permittee and of track and racing officials, together with such pertinent rules as the Department may designate.

N. A permittee shall not allow an official to act until the official's appointment has been approved by the Department; provided that, in the case of sickness or inability to act, the provisions of R19-2-121(A)(5) apply.

O. The permittee shall provide a photo finish and videotape device, approved by the Department, for the purpose of recording all races. The photographs and videotapes may be used to aid the stewards in determining the finishes of races. Permittees shall retain for three months all official race photographs and videotapes. The Department may require that specific photographs and videotapes be retained for a longer period of time or be transmitted to the Department for subsequent administrative or judicial proceedings.

P. Notwithstanding subsection (K), wagering may be conducted, by permission of the Department, on electronically televised simulcasts provided:

1. The simulcasts originate from a racing facility outside the state of Arizona.

2. The race is televised on the grounds of the permittee.

3. The televised race is included with the posted races for that racing day.

4. The televised race complies with the Interstate Horseracing Act of 1978 (15 U.S.C. 3001 et seq.).

5. Monies wagered are computed in the total daily handle.

6. An out-of-state facility, receiving a simulcast originating from a racing facility within the state of Arizona, operates under the approval and regulation of an official agency of that state.

Q. Any automatic timing device installed by the permittee shall have the approval of the Department.

R. Each commercial horse racing permittee shall furnish the Department with annual financial statements audited and certified by a firm approved by the auditor general.

1. The firm shall conduct the audit in accordance with audit standards prescribed by the auditor general.

2. The firm shall prepare the financial statements in accordance with generally accepted accounting practices.

3. The firm shall use the following accounting practices:

a. Overpayments shall be treated as an asset to the extent that they are recoverable. Overpayments are reported as an asset titled "Purse Overpayments," immediately following current assets. If the permittee and the accountant determine that all or part of any overpayment is not recoverable, the dollar amount expensed and the basis of the determination shall be disclosed in the notes to the financial statements.

b. Underpayments shall be reflected as an account payable.

c. Wagering income shall be reported net of sales taxes.

d. Amounts which a permittee is seeking to recover through litigation shall not be reported as assets.

4. The firm shall submit the following information with the financial statements in a form prescribed by the Department:

a. An analysis of the composition of and changes in accounts payable which include underpayments and asset accounts which include overpayments,

b. A summary of current year purse expense and over- or underpayment,

c. The total amount of salaries and bonuses expense,

d. Legal and accounting expense attributable to racing-related matters,

e. An explanation of the types of revenues and expenses classified in accounts titled "other," and

f. Other financial information requested by the Commission or Department.

5. Financial statements of permittees granted original permits prior to July 1, 1982, shall be on a fiscal year basis. Financial statements of permittees granted original permits after July 1, 1982, may be on a fiscal or calendar year basis at the discretion of the Director.

6. The firm shall submit financial statements within 120 calendar days of the end of the fiscal or calendar year.

7. The firm shall report overpayments and underpayments to the Department in a form prescribed by the Department within 10 working days after the end of each condition book period.

S. Each permittee shall comply with the provisions of Article 2 of this Chapter.

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended subsection (H) paragraph (9) effective August 2, 1985 (Supp. 85-4). Amended subsection (R) effective June 6, 1986 (Supp. 86-3). Amended effective March 20, 1990 (Supp. 90-1). Amended effective August 6, 1991 (Supp. 91-3). R19-2-104 recodified from R4-27-104 (Supp. 95-1). Amended effective January 6, 1998 (Supp. 98-1). Amended by exempt rulemaking at 17 A.A.R. 1484, effective July 20, 2011 (Supp. 11-3).

Ariz. Admin. Code § R19-2-105 Charity Races

A. A permittee shall provide the Commission with:

1. The name of any nonprofit organization or corporation selected by the permittee as a charity entitled to benefit from a charity racing day or race.

2. A list of the names and addresses of all directors, officers, and shareholders holding 10% or more of the total number of outstanding voting shares of the charitable corporation.

3. A brief description of the purposes and activities to be benefited by monies received from the charity racing day or race.

4. A copy of an Internal Revenue Service letter of determination qualifying the particular charity as an exempt organization or corporation for federal income tax purposes.

B. No permittee shall charge any expenses incurred by operation of racing against the pari-mutuel handle of a charity racing day or race except those prorated expenses incurred on the day of that particular charity racing day or race.

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended effective March 20, 1990 (Supp. 90-1). R19-2-105 recodified from R4-27-105 (Supp. 95-1).

Ariz. Admin. Code § R19-2-106 Licensing

A.A person that participates in any capacity in a race meet, including a person who performs services in connection with the conduct of the race meet, shall obtain a license from the Department, except:

1. A person that performs services during a county fair meet and is identified by a steward as a volunteer; or

2. A person that owns less than 10 percent of outstanding shares of stock, regardless of classification or type, of a permittee or licensee.

B. License application.

1. To apply for a license, a person shall complete the license application prescribed by the Department, which requires the following information, and submit the completed application to a steward:

a. Name, including all aliases or other names ever used;

b. Mailing and local addresses;

c. Telephone number;

d. Date of birth;

e. Physical description;

f. Social Security or alien status number;

g. Documentation, as specified under A.R.S. § 41-1080(A), of lawful presence in the U.S.;

h. Complete criminal history information including any racing-related sanctions; and

i. License category for which application is made.

The Department may issue written instructions regarding preparation and execution of the license application The instructions may be a part of or separate from the application, or both.

3. When an applicant submits a license application, the applicant shall also submit the fee established by the Department under R19-2-202(C) . The Department shall ensure that a schedule of license and fingerprint processing fees is displayed prominently at each track and on its web site.

4. An applicant who is at least 18 years old shall submit two full sets of fingerprints to the Department. The applicant shall ensure that the fingerprints are taken by the Department, a law enforcement agency, or other authority acceptable to the Department and in a format acceptable to the Arizona Department of Public Safety and the Federal Bureau of Investigation.

5. An applicant for a trainer license who has not been licensed as a trainer in any jurisdiction during the last 10 years shall demonstrate knowledge and skill in protecting and promoting the safety and welfare of animals participating in race meets by passing an examination, which may include written, oral, and skill demonstration parts, prescribed by the Department. An applicant who fails to pass the examination shall wait at least 90 days before retaking the examination.

6. An applicant for a racing license shall indicate on the license application whether the applicant hires employees or independent contractors to work at an Arizona racetrack. For the purposes of this Section, "employee" has the meaning in A.R.S. & 23-902(B) and "independent contractor" has the meaning in A.R.S. & 23-902(C).

a. An applicant that hires employees to work at an Arizona racetrack shall provide proof of compliance with A.R.S. & 23-961(A) by providing to the Department a copy of the declaration page of the applicant's workers' compensation insurance policy.

b. The Department shall notify the Industrial Commission of Arizona of an applicant that fails to provide proof of workers' compensation insurance as required in this Section. The Department shall notify the Industrial Commission of Arizona of an applicant that hires independent contractors to enable the Industrial Commission of Arizona to investigate the characterization of the applicant's workers as independent contractors.

C. The Department shall presume that an applicant or licensee knows the law governing racing in Arizona. An applicant or licensee shall follow A.R.S. Title 5, Chapter 1 and this Chapter.

D.License procedure.

1. Under delegation from the Director, on receipt of a license application, a steward shall grant or deny a temporary license and transmit the license application to the Director.

2. In considering each application for a license, a steward may require the applicant, as well as individuals attesting to the applicant's abilities, to appear before the steward and show that the applicant is qualified to receive the license requested. The steward shall grant a temporary license only if the steward determines that the applicant meets all the requirements in A.R.S. Title 5, Chapter 1, and this Chapter.

3. Licensing time-frames.

a. Administrative completeness review time-frame.

i. Within 85 days after receiving a license application, the Department shall determine whether the license application contains the information required under subsection (B).

ii. If the license application is incomplete, the Department shall issue a written notice that specifies what information is required and return the license application. If the license application is complete, the Department shall provide a written notice of administrative completeness.

iii. The Department shall deem a license application withdrawn if the applicant fails to file a complete license application within 15 days of the date on the notice that the license application is incomplete.

b. Substantive review time-frame. Within five days after determining that a license application is administratively complete, the Department shall determine whether the applicant meets all substantive requirements and the Director, or designee, shall issue a written notice granting or denying a license.

c. Overall time-frame. For the purpose of A.R.S. § 41-1073, the Department establishes the following time-frames for issuing a license:

i. Administrative completeness review time-frame: 85 days.

ii. Substantive review time-frame: five days.

iii. Overall time-frame: 90 days.

4. Temporary license. All licenses are temporary for 90 days under A.R.S. § 5-108(F). Unless the Director denies a license to an applicant, a temporary license automatically becomes the license after 90 days.

5. The Department shall perform a background investigation of an applicant who is at least 18 years old, including fingerprint processing through the Department of Public Safety and the FBI, and reviewing records of a national database containing license information and rulings, information systems, courts, law enforcement agencies, and the Department within the time-frame prescribed under subsection (D)(3)(a).

E.Denials.

1. The Department shall base a decision to deny a license on an assessment of whether the applicant:

a. Has been or is intoxicated at the time of application or has a history as a user of a narcotic drug, as defined at A.R.S. § 36-2501(A)(8), within the grounds of the permittee, or

b. Fails to disclose the true ownership or interest in any horse.

2. When a license is denied, the Director shall report the reason for the denial in writing to the applicant and a national database listing license information and rulings.

F.General requirements and restrictions.

1. A licensee who is employed in more than one license category or who changes from one category to another shall be licensed in each category.

2. A licensee who is an official at more than one type of track (horse, harness, or greyhound) shall be licensed at each type of track. The requirement in this subsection does not apply to a pari-mutuel manager who may use the same license at any type of track.

3. The Director or designee shall not license a person who is younger than 16 years old in any capacity other than as an owner, and shall not license a person who is younger than 18 years old as an official, trainer, or assistant trainer. A person who is younger than 18 years old is not eligible to be licensed as an owner unless the person's parent or guardian signs the owner's license application and assumes full financial responsibility for the owner.

4. When present in the barn area of a horse track, paddock area, or any other restricted area, a person shall wear in full view a photo identification badge issued by the Department or a pass issued by the permittee.

G.Authorized agents.

1. A person may hold a license only as an authorized agent or be licensed as an authorized agent and in another category.

2. The principal shall sign a license application on behalf of an authorized agent and clearly identify the powers of the agent, including whether the agent is empowered to collect money from the permittee. The principal shall have the license application either notarized or signed in the presence of a Department employee and a copy filed with the horsemen's bookkeeper and the Department. If there is a separate power of attorney, the principal shall file a copy of the instrument with the bookkeeper and the Department.

3. To change an agent's powers or revoke an agent's authority, the principal shall describe the changed powers or revoked authority in writing that is either notarized or signed in the presence of a Department employee and filed with the Department and the horsemen's bookkeeper.

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended subsections (G) and (I) effective January 25, 1985 (Supp. 85-1). Amended subsections (F) and (G) effective December 5, 1985 (Supp. 85-6). Amended subsections (F) and (G) effective February 19, 1987 (Supp. 87-1). Amended subsections (A) and (B) effective October 23, 1987 (Supp. 87-4). Amended subsections (E), (F) and (G) effective November 30, 1988 (Supp. 88-4). Amended effective March 20, 1990 (Supp. 90-1). Amended effective January 13, 1995 (Supp. 95-1). R19-2-106 recodified from R4-27-106 (Supp. 95-1). Amended effective January 6, 1998 (Supp. 98-1). Amended by final rulemaking at 10 A.A.R. 717, effective April 3, 2004 (Supp. 04-1). Amended by final rulemaking at 10 A.A.R. 4483, effective December 4, 2004 (Supp. 04-4). Amended by exempt rulemaking at 17 A.A.R. 1484, effective July 20, 2011 (Supp. 11-3). Amended by final rulemaking at 19 A.A.R. 3412, effective November 30, 2013

Ariz. Admin. Code § R19-2-107 Stable Names

A. A licensed owner who wishes to race under a stable name shall register the stable name with the Department and pay the fee listed in R19-2-106 .

1. Only an owner may register or secure a license under a stable name.

2. A name other than the legal name of an owner is a stable name.

B. When registering a stable name, a licensed owner shall identify any individual or business entity operating under the stable name.

1. An individual operating under a stable name shall possess and be able to produce the individual's owner's license upon request by a racing official.

2. An individual operating under a stable name shall sign the authorized agent's application.

3. A business entity operating under a stable name shall:

a. Register to do business according to the laws of the state of Arizona;

b. Submit a list that identifies each stockholder who owns more than 10% of the existing shares, or each partner in a partnership;

c. Notify the Department immediately of any change in ownership; and

d. Use the name under which the business entity does business in Arizona as its stable name.

C. If consistent with other laws, a licensed owner may change a stable name by registering the new stable name and paying the applicable fee in R19-2-106.

D. To abandon a registered stable name, a licensed owner shall provide written notice to the Department.

E. A licensed owner shall select a stable name that is distinguishable from other registered stable names.

F. Upon registration, the Department shall determine whether a prospective stable name will be:

1. Misleading to the public, or

2. Unbecoming to the sport.

G. The Department shall not register a stable name that is misleading to the public or unbecoming to the sport.

H. A licensed owner shall register a separate name for each of the owner's stables.

I. A licensed owner operating under a stable name shall pay all entry fees for and penalties against the stable.

J. At the time of entry, a licensed owner shall ensure that the applicable stable name is furnished for the official program.

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended effective March 20, 1990 (Supp. 90-1). R19-2-107 recodified from R4-27-107 (Supp. 95-1). Amended by final rulemaking at 9 A.A.R. 4919, effective December 6, 2003 (Supp. 03-4).

Ariz. Admin. Code § R19-2-108 Leases

A. The lessee of a horse shall file a copy of the leasing arrangement with the Department. The leasing arrangement shall include:

1. The name of the horse,

2. The name and address of the owner-lessor,

3. The name and address of the lessee,

The stable name, if any, of each party,

5. The terms of the lease.

B. No corporation having more than 10 stockholders who are the registered or beneficial owners of stock or membership in the corporation shall lease any horse owned or controlled by it to any person or partnership for racing purposes.

C. No owner's license shall be granted to a lessee of any corporation referred to in subsection (B) of these rules.

D. A corporation which leases horses for racing purposes in this state, its stockholders, and its members shall file with the Department, upon request, a report containing such information as the Department may specify.

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended effective March 20, 1990 (Supp. 90-1). R19-2-108 recodified from R4-27-108 (Supp. 95-1).

Ariz. Admin. Code § R19-2-109 Jockeys and Apprentice Jockeys

A. In this Chapter, unless the context requires otherwise:

1. A jockey shall pass a physical examination by a physician designated by a permittee. A physical examination is valid for 12 months. A steward may require that a jockey take an additional physical examination if the steward reasonably believes a jockey's physical condition may endanger himself, his mount, or others. A steward may refuse to allow a jockey to ride until the jockey successfully passes another physical examination. A steward or a steward's designee may require that a jockey provide blood or urine samples for analysis upon request under A.R.S. § 5-104(C).

2. Unless excused by the stewards, a jockey engaged to ride in a race shall report to the jockey room at least one hour before post time of the first race in which the jockey is scheduled to ride and, unless excused by the stewards, shall remain in the jockey room between races until all engagements for the day have been fulfilled.

3. A jockey shall wear standard jockey attire in official races.

4. Only a jockey, an attendant, and a racing official are permitted in the jockey room.

5. A jockey is entitled to a mount fee as established by agreement between the jockey and the owner or trainer when the jockey is weighed out by the clerk of scales except when:

a. The jockey refuses to ride a mount without proper cause; and

b. A steward replaces the jockey with a substitute jockey, unless the jockey is being replaced because of an injury received after weighing out and before the start of a race.

6. An owner or trainer may replace a jockey named at the draw by lot or by a steward without payment of a mount fee by notifying a steward or the steward's designee by 9:00 a.m. MST the entry day following the draw.

7. An owner or trainer shall pay a mount fee to a replaced jockey that is equal to the fee paid to the jockey who rides the race unless:

a. The owner or trainer replaces the jockey by notifying a steward or the steward's designee no later than 9:00 a.m. MST on the next business day after the jockey is replaced. If this notice is made, the owner shall pay a losing fee to each jockey the owner replaced in a race. The Director may establish an earlier deadline for jockey changes in consultation with a permittee, steward, jockey, owner, and trainer, or their representatives at the race meet. The Director shall not establish a deadline for jockey changes later than noon of a race day at any race meet with an average daily handle of $100,000.00 or less; or

b. The replaced jockey or jockey's agent waives the fee.

B.Equipment.

1. A steward shall ensure that a bridle used in a race does not exceed two pounds in weight.

2. If a jockey uses a whip in a race, the jockey shall ensure that the whip is at least 1/4 inch in diameter and not more than one pound in weight or 30 inches in length including the popper.

3. When a jockey races without a whip, notice that the jockey is racing without a whip shall be made in the official race program or announced to the general public through effective, usual, and customary means intended and expected to reach the majority of the racing public.

3. 4. A jockey, apprentice jockey, exercise rider, pony person, and any other person shall wear a properly fastened helmet at all times when mounted on a racing surface.

5. A jockey, apprentice jockey, and exercise rider shall wear an industry-approved safety vest at all times when mounted on a racing surface.

C.Weight; weighing.

1. An owner shall deposit a losing mount fee with a permittee before a jockey is weighed out for a race. If an owner fails to comply with this subsection, a steward may declare the owner's horse out of the race.

2. A jockey shall weigh out and weigh in for a race without a whip or bridle.

3. A jockey's weight is measured against the jockey's assigned weight as published in the official race program.

4. A jockey shall not ride in a race if the jockey weighs out more than one pound less than the jockey's assigned weight published in the official race program.

5. A jockey shall report the jockey's weight to the clerk of scales one hour before the time set for the first scheduled race of the race day.

a. A jockey shall not ride in a race if more than two pounds overweight without the consent of the owner or trainer of the horse the jockey is to ride.

b. A jockey shall not ride in a race if more than seven pounds overweight without the consent of a steward.

c. A steward shall not disqualify a horse because of any overweight the horse carries.

d. A permittee shall notify the public of any weight different from that published in the official race program through effective, usual, and customary mechanisms intended and expected to reach the majority of the wagering public.

6. Immediately after pulling up, a jockey shall ride to the place of weighing in, dismount after obtaining permission from the official in charge, and wait to be weighed by the clerk of the scales.

7. A jockey shall not intentionally touch any person or thing other than the jockey's own equipment before weighing in.

a. A jockey shall unsaddle the jockey's own horse, unless the jockey obtains permission from an official in charge.

b. An attendant shall touch a horse only by the horse's bridle unless the attendant obtains permission from an official in charge.

c. A person shall not touch the equipment of a jockey who has returned to the winner's circle to dismount until the jockey has been weighed in unless the person obtains permission from an official in charge.

8. A jockey who is not able to ride to the place of weighing in because of an accident or illness that disables either the jockey or the horse shall walk or be assisted to the scales.

D.Apprentice jockey.

1. Licenses.

a. An applicant for an apprentice jockey license shall submit to the Department a certified copy of the applicant's birth certificate or other satisfactory evidence of date of birth.

b. A steward shall issue an apprentice jockey license if an applicant:

i. Is more than 16 years old and, if less than age 18 years old, a parent or guardian signs the license application assuming full financial responsibility for the applicant;

ii. Is approved by a starter for working a horse out of the gate ;

iii. Successfully demonstrates to a steward the ability to gallop or exercise a horse; and

iv. Has the necessary tack and apparel.

Expiration of license; weight allowance.

a. An apprentice jockey license expires when the apprentice jockey can no longer claim the weight allowances under subsection (D)(2)(b). When an apprentice jockey license expires, the apprentice jockey shall surrender the license to the Department. If an apprentice jockey license expires during the term of the current licensing cycle, the Department shall issue a jockey license at no additional cost.

b. An apprentice jockey who has not been licensed previously in any country may claim a weight allowance as follows in all overnight races except handicaps and stakes :

i. Five pounds for one year from the date of the apprentice jockey's fifth winner; or

ii. If the apprentice jockey has not ridden at least 40 winners within one year from the date of the apprentice jockey's fifth winner, five pounds for three years from the date of the apprentice jockey's first winner or until the apprentice jockey has ridden a total of 40 winners, whichever comes first.

c. The calculation of the time for which an apprentice jockey may claim a weight allowance shall not include time:

i. In the armed forces, or

ii. The apprentice jockey is physically incapacitated from performing as a jockey.

d. An apprentice jockey may ride quarter horses under the following conditions:

i. The apprentice jockey does not claim an apprentice jockey weight allowance in the race; and

ii. The Department does not consider a winner in the race for the purpose of computing the expiration of the right of the apprentice jockey to claim a weight allowance.

E.Prohibited acts.

1. A jockey shall not fail or refuse to fulfill an engagement for a race unless:

a. The race or race card is canceled, or

b. A steward excuses the jockey.

2. A jockey shall not own, either in whole or in part, a horse registered for racing at a track where the jockey is riding.

3. A jockey shall not engage in any pari-mutuel wagering transaction except through the owner of and on the horse that the jockey rides.

4. A jockey attendant, jockey valet, or any licensee employed inside a jockey room shall not place a wager for themselves or another person while they are acting under the authority of their license.

5. A jockey shall not ride against a horse trained by the jockey's spouse except as part of an entry.

6. A jockey shall not whip a horse:

a. On the head, flanks, or any part of the horse's body other than the shoulders or hind quarters;

b. During the post parade except when necessary to control the horse;

c. Excessively or brutally causing welts or breaks in the skin;

d. When the horse clearly is out of the race or has obtained its maximum placing; or

e. Persistently even though the horse is showing no response to the whip.

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended effective March 20, 1990 (Supp. 90-1). R19-2-109 recodified from R4-27-109 (Supp. 95-1). Amended by final rulemaking at 5 A.A.R. 812, effective February 24, 1999 (Supp. 99-1). Amended by final rulemaking at 10 A.A.R. 717, effective April 3, 2004 (Supp. 04-1). Amended by final rulemaking at 19 A.A.R. 3412, effective November 30, 2013.

Ariz. Admin. Code § R19-2-110 Jockey Agents

A. When applying for a jockey agent license, an applicant shall be accompanied by a jockey that the applicant will represent as jockey agent.

B.A person who has not previously been licensed as a jockey agent in any jurisdiction shall demonstrate the knowledge to be licensed as a jockey agent by passing an examination prescribed by the Department. An applicant who fails to pass the examination shall wait 60 days before retaking the examination.

B. C.A jockey agent shall not contract riding engagements for more than three jockeys at the same time.

C. D. The Department shall charge only one fee for a jockey agent's license no matter how many jockeys the jockey agent represents.

D. E.A jockey agent shall not change a rider unless the stewards grant permission.

E. F.A jockey agent shall not work in any other capacity at the track where the jockey agent is licensed without permission of the stewards and without being licensed in the other capacity.

F. G.A jockey agent may enter a horse in a race if the jockey agent has the permission of the horse's trainer.

G. H.Riding engagements shall be made only by a jockey or the jockey's jockey agent.

H. I.A jockey agent shall not communicate with a jockey the jockey agent represents during racing hours. A jockey agent shall notify a jockey the jockey agent represents of riding engagements made during racing hours through the stewards or a designated official.

I. J.A jockey may act as the jockey's own agent. If a jockey chooses to act as the jockey's own agent, the jockey shall:

1. Notify the stewards of that intention ,

2. Comply with provisions of this Chapter governing jockey agents,

Not obtain a jockey agent's license, and

4. Be present at the time entries are drawn unless other arrangements have been made with the stewards.

J. K.When a jockey or the jockey's jockey agent wishes to terminate the agent agreement, the jockey and jockey agent shall appear together before the stewards to advise the stewards that the agent agreement has been terminated.

L.A jockey agent or jockey acting as the jockey's own agent shall honor a call given to an owner or trainer for a mount in a race. If the Department determines that a jockey agent or jockey violated this subsection, the Department shall fine the jockey agent or jockey, suspend the license of the jockey agent or jockey, or both.

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended effective March 20, 1990 (Supp. 90-1). R19-2-110 recodified from R4-27-110 (Supp. 95-1). Amended by final rulemaking at 19 A.A.R. 3412, effective November 30, 2013.

Ariz. Admin. Code § R19-2-111 Trainers

A. A trainer shall know and follow the provisions of A.R.S. Title 5, Chapter 1 and this Chapter governing racing in the state of Arizona.

B. A trainer and the trainer's employees shall comply with the decisions of the stewards on all questions to which the stewards' authority extends, subject to the right of appeal to the Department under R19-2-123.

C. A trainer is responsible for the condition of horses under the trainer's care and shall protect the horses from acts of other parties.

D. A trainer shall ensure that each person employed by the trainer at a licensed track is licensed by the Department and that the owner of each horse that is to be entered by the trainer in a race is licensed by the Department at least one hour before the scheduled post time of the race in which the horse is entered.

1. A trainer shall refuse to act on behalf of any participant at a licensed track if the trainer has reasonable cause to believe that the participant is not licensed by the Department.

2. A trainer shall not start a horse in a race if the trainer has reason to believe that an owner of the horse is not licensed by the Department . A trainer may enter a horse for an unlicensed owner in a race. If there are no horses on the also-eligible list for the race and the owner of the horse entered by the trainer is not licensed at least one hour before post time of the first race of the day, the trainer shall have the horse scratched. If there are horses on the also-eligible list, a trainer who entered a horse of an owner who remains unlicensed at the designated scratch time for the race shall have the horse scratched.

3. A trainer shall report to the stewards the existence of the circumstances described in subsections (D)(1) and (2) .

4. A trainer shall present the trainer's horse in the paddock at least 17 minutes before post time or at another time specified by the stewards before the race in which the horse is entered.

E. A trainer shall file all registration papers with the racing secretary within 48 hours of the trainer's arrival on the grounds of the permittee.

F. If track colors are not in use, a trainer shall ensure that each of the trainer's horses has a set of colors registered in the office of the racing secretary and possessed by the jockey room custodian before the horses are entered in a race.

G. A trainer shall pick up all registration papers and colors at the close of the race meet.

H.A trainer shall notify the stewards before the transfer of a horse to or from another trainer during a race meet. The trainer shall not make a transfer until the transfer is approved by the stewards.

I.A trainer shall not shoe a horse that is not under the trainer's care except by permission of the stewards.

J.When a trainer is absent from the grounds where the trainer's horse is racing, the trainer shall provide a substitute licensed trainer to be responsible for the horse . If there is a violation of subsection (C) or R19-2-120(O)(1), the stewards shall take appropriate action against the responsible party. No provision of this Chapter relieves an absent trainer of responsibility or limits the absent trainer's responsibility under subsection (C). Both the absent and substitute trainers shall sign a "Trainers' Responsibility Form" provided by the Department, which shall be submitted to and approved by a steward.

K.A trainer shall not have an ownership interest in a horse unless the trainer trains the horse and the horse is located at the track where the trainer trains. For purposes of this subsection, a reversionary interest created by an agreement transferring control of a horse is not an ownership interest.

L.A trainer may employ an assistant trainer with the approval of the stewards. An assistant trainer shall comply with all requirements for a trainer prescribed by this Section.

M.A trainer shall not train a horse for the benefit, credit, reputation, or satisfaction of an inactive person at a location under the jurisdiction of the Department.

1. A trainer shall not:

a. Assume the responsibilities of an inactive person at a location under the jurisdiction of the Department,

b. Complete a race entry form for or on behalf of an inactive person or an owner for whom the inactive person works,

c. Pay or advance an entry fee for or on behalf of an inactive person or an owner for whom the inactive person works, or

d. Pay or provide consideration in any form to an inactive person or a person associated with the inactive person; and

If a trainer fails to comply fully with this subsection, the trainer shall not:

a. Be paid a salary directly or indirectly by or on behalf of the inactive person, and

b. Receive consideration in any form however denominated.

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended subsection (D) paragraph (2) effective February 7, 1984 (Supp. 84-1). Amended effective March 20, 1990 (Supp. 90-1). R19-2-111 recodified from R4-27-111 (Supp. 95-1). Amended by final rulemaking at 10 A.A.R. 717, effective April 3, 2004 (Supp. 04-1). Amended by final rulemaking at 19 A.A.R. 3412, effective November 30, 2013.

Ariz. Admin. Code § R19-2-112 Prohibited Acts

In addition to other prohibitions described in A.R.S. Title 5, Chapter 1 and this Chapter:

1. A licensee shall not enter, or cause or permit to be entered, or start a horse that the licensee knows or has reason to believe should be disqualified or may be ineligible to race.

2. A veterinarian or plater, licensed to practice on a track under the jurisdiction of the Department, shall not own, lease, or train a horse racing at the track on which the veterinarian or plater practices.

3. A licensee shall not enter a stall, shed row, tack room, or feed shed assigned to another licensee without prior approval from the licensee to whom the area is assigned. The Department shall discipline a licensee determined to have violated this subsection, including voiding the transfer of a horse to which the licensee has made a successful claim.

4. A licensee shall not subject or permit an animal under the licensee's control, custody, or supervision to be subjected to any form of cruelty, mistreatment, neglect, or abuse and shall not abandon, injure, maim, kill, administer a noxious substance to, or deprive the animal of necessary care, sustenance, or shelter.

3. 5. A licensee shall not participate in an unauthorized race on a track while a race meet is in progress on the track.

4. 6. A licensee shall not offer or receive money or other consideration for declaring an entry out of a purse or stakes race.

5. 7. A licensee shall not possess, within the grounds of a permittee, an electrical, mechanical, or other device, except a whip, which may be used to affect the speed or racing condition of a horse. Possession includes, but is not limited to, having the device:

a. On the licensee's person;

b. In living or sleeping quarters;

c. In an assigned stall, tack room, or other area; and

d. In a motor vehicle or trailer.

6. Other than a physician or veterinarian licensed by the Department, a person shall not possess, within the grounds of any permittee, any foreign or prohibited substance, injectable vial, hypodermic needle, syringe, or any other instrument which might be used for injection, without written permission of the stewards. Possession includes, but is not limited, to possession:

a. On the person;

b. In living or sleeping quarters;

c. In an assigned stall, tack room, or other area;

d. In a motor vehicle or trailer.

7. 8. A person holding a license listed in A.R.S. § 5-104(C) shall not apply, inject, inhale, ingest, be under the influence of, possess, or use a narcotic, dangerous drug, or controlled or prohibited substance regulated under A.R.S. Title 13, Chapter 34 while on permittee grounds unless, on the request of a steward, the licensee can produce evidence that the licensee has a lawfully issued prescription for possession or use of the narcotic, dangerous drug, or controlled or prohibited substance.

8. 9. A jockey, apprentice jockey, exercise rider, or pony rider shall not consume any quantity of an alcoholic beverage on a race day before completing riding commitments for the day.

9. 10. A licensee or employee of a permittee shall not accept, either directly or indirectly, a bribe, gift, or gratuity in any form that is intended to or might influence the results of a race or the conduct of a race meet.

10. 11. A licensee, while on the premises of a permittee, shall not create a disturbance, be intoxicated, interfere with a racing operation, or act in an abusive or threatening manner to a racing official or other person.

12. A licensee shall not engage in conduct that is prohibited by the Department or detrimental to the best interests of horse racing including, but not limit to, soliciting, aiding, or abetting another person to participate in conduct prohibited by the Department or detrimental to the best interests of horse racing.

11. Only veterinarians licensed by the Department shall administer to or prescribe for horses on the premises of any permittee.

a. A licensed veterinarian shall maintain a written record of the name, date, and amount of any drugs or treatments prescribed or administered at the track.

b. Notwithstanding the provisions of subsection (11) of this rule, any veterinarian may treat a horse if an emergency involving the life or health of such horse exists.

12. Notwithstanding the provisions of subsection (16) of this Section, a person shall not administer or cause to be administered a foreign substance, internally or externally, to a horse entered in a race, prior to the race on the calendar day in which the horse is to run, except that:

a. With permission of the Department veterinarian, a licensed veterinarian may administer furosemide or conjugated estrogens on the day of the race to control exercise-induced pulmonary hemorrhage, subject to the restrictions prescribed in R19-2-121(P)(5), (6), and (7). The Department veterinarian shall place these horses on the lasix list. The Department veterinarian shall grant permission for placement of a horse on the lasix list if a veterinarian licensed by the Department determines that a horse suffers from exercise-induced pulmonary hemorrhage or a racing regulatory agency has placed the horse on a bleeders' list at a track outside of Arizona.

b. A person shall not administer furosemide within four hours prior to post time of a race in which the horse is run.

c. A permittee shall clearly identify horses given furosemide on the program or on a list located in areas where mutuel tickets are sold.

13. The Commission has established permissible trace levels of the following foreign substances, as defined in R19-2-102(15) .

a. The trace level of Phenylbutazone shall not exceed 5 micrograms per milliliter of plasma of the horse.

b. The trace level of Oxyphenbutazone shall not exceed 5 micrograms per milliliter of plasma of the horse.

14. A person shall not participate in the nerving of a horse intended to be entered in a race at a track within the state of Arizona.

a. Registration papers will not be accepted on nerved horses.

b. A person shall not enter a nerved horse in a race.

c. A person shall not race a horse which is desensitized by the application of cold, chemical, or mechanical freezing devices at the time of arrival at the receiving barn or saddling paddock.

15. Test samples

a. Animal testing

i. A steward or Department veterinarian may subject an entry in a race to saliva, urine, blood, or other tests for the purpose of finding foreign substances.

ii. Persons approved by the Department shall take samples of saliva, urine, blood, or other substances.

iii. A steward may authorize the splitting of any sample.

iv. A Department veterinarian may require blood, urine, or saliva samples to be stored in a frozen state forfuture analysis.

v. The owner, trainer, or their representative may be present at all times during the taking and sealing of suchtests and samples.

vi. The owner, trainer, or representatives of either shall sign documents evidencing the procedure.

vii. A person shall not interfere with the collection or procedures conducted under this ruleSection.

b. Human testing

i. 13. A licensee shall immediately submit to blood, urine, breath, or other tests ordered by the stewards if the stewards have reason to believe the licensee is under the influence of or in possession of a prohibited substance or has consumed alcohol in violation of subsection (8) (10) or (11).

ii. a. A licensee ordered by a steward to submit to a test under this subsection shall provide a sample in the presence of the steward or the steward's designee and submit the sample to the steward or the steward's designee in a container furnished by the Department;

b. The steward or steward's designee shall immediately seal the sample container in the presence of the licensee being tested;

iii. c. The steward or steward's designee shall mark the sample container with the following items: sample identification number; time, date, and location at which the sample was given; and signature of Department personnel sealing the container;

iv. d. The steward or steward's designee shall submit the sample to the official laboratory for analysis;

v. e. If analysis of the sample provided under this subsection indicates the presence of a prohibited substance or alcohol, the licensee who provided the sample shall be subject to disciplinary action authorized under A.R.S. § 5-108.05(A);

vi. f. The Department shall ensure that results and information obtained as a result of analysis of the sample provided under this subsection are accessible only to members of the Commission, the Director or designees, and the tested licensee until any disciplinary action or administrative proceeding is complete; and

vii. g. Compliance with this subsection by the steward or steward's designee constitutes prima facie evidence that the chain of custody of the test sample is secure. The presiding officer or administrative law judge in an administrative proceeding of the Department or Commission shall admit the results of the tests as evidence.

16. The trainer, groom, and any other person charged with the custody and care of a horse is required to protect and guard the horse against the administration, either internally or externally, of any foreign substance. A positive test indicating the presence of a foreign substance (except as set forth in subsections (12) and (13) of this Section) creates the presumption of failure to meet the duty imposed by this rule.

17. The owner of a horse disqualified in a race because of an infraction of these rules shall forfeit and return the purse or stakes, the trophy received from the race, and the entry or subscription money.

a. The stewards shall distribute winnings forfeited pursuant to this subsection among the remaining entitled entries in the race.

b. The stewards shall disqualify and may declare a horse unplaced for every purpose except pari-mutuel wagering if the chemical analysis performed pursuant to subsection (15)(a) of this Section indicates the presence of a foreign substance classified as Class 1 or Class 2 under the Association of Racing Commissioners International, Inc., February 14, 1995, Uniform Classification Guidelines for Foreign Substances incorporated by reference, on filewith the Office of the Secretary of State, and not including any later amendments or editions.

c. The stewards may disqualify and declare a horse unplaced for every purpose except pari-mutuel wagering if the chemical analysis performed pursuant to subsection (15)(a) of this Section indicates the presence of a foreign substance classified as Class 3, Class 4, or Class 5 under the Association of Racing Commissioners International, Inc., February 14, 1995, Uniform Classification Guidelines for Foreign Substances incorporated by reference, on file with the Office of the Secretary of State, and not including any later amendments or editions.

d. The stewards may disqualify and declare a horse unplaced for every purpose except pari-mutuel wagering if the chemical analysis performed pursuant to subsection (15)(a) of this Section shows that a horse on the lasix list raced without the medication described in subsection (12) of this Section, or that the plasma of the horse contained trace levels of medication in excess of the level permitted by subsection (13) of this Section.

e. The Department veterinarian shall review all reports indicating the presence of a foreign substance and consult with the stewards prior to the initiation of disciplinary action. When a report indicates the presence of a substance classified as Class 3, Class 4, or Class 5, the Department veterinarian's review shall specifically address trace-level detection to prevent the initiation of disciplinary action based upon pharmacologically insignificant traces of a substance.

18. 14. A licensee shall promptly pay any financial obligation incurred in connection with racing in this state. If failure or refusal to pay a financial obligation incurred in connection with racing in this state results in the financial obligation being reduced to a judgment against a licensee, the Department shall take disciplinary action against the licensee as authorized under A.R.S. § 5-108.05.

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended paragraphs (10) and (11) effective June 6, 1986 (Supp. 86-3). Amended paragraphs (10) and (11) effective August 3, 1987 (Supp. 87-3). Amended effective November 30, 1988 (Supp. 88-4). Amended effective March 20, 1990 (Supp. 90-1). R19-2-112 recodified from R4-27-112 (Supp. 95-1). Amended effective January 12, 1996 (Supp. 96-1). Amended by final rulemaking at 19 A.A.R. 3412, effective November 30, 2013.

Ariz. Admin. Code § R19-2-113 Entries and Subscriptions

A. Entry.

1. An owner, trainer, or authorized agent shall not register a horse for racing under this Chapter unless the horse is registered by the Jockey Club, American Quarter Horse Association, Arabian Horse Club Registry of America, Inc., Appaloosa Horse Club Inc., American Paint Horse Association, American Donkey and Mule Society, or American Mule Association.

2. An owner, trainer, or authorized agent shall list each person with an ownership interest in a horse on the back of the horse's registration papers.

3. An owner, trainer, or authorized agent may enter a horse in person, by telephone or telegram, or in writing.

4. An owner, trainer, or authorized agent shall declare at the time of entry whether the jockey will carry a whip.

5. A person shall not enter a horse in a race unless the horse is eligible in all aspects at the time of entry, except with permission of the stewards.

4. 6. The stewards shall assume a horse entered for a purse is a starting horse unless the stewards declare the horse out of the race.

5. 7. A person nominating a horse in a stakes race shall write the person's full name, mailing address, and telephone number on the nomination form.

6. 8. A person shall not enter a horse in more than one race in one day.

7. 9. An owner shall not transfer a horse to a new trainer after entry.

8. 10. An owner shall not enter a horse unless the horse's performance records for the preceding calendar year :

a. Are printed in the Daily Racing Form Monthly Chart Book, or

b. The owner provides the horse's performance records to the racing secretary before entry.

9. 11. An owner, trainer, or authorized agent shall sign and certify a horse's performance record and shall provide the following information for the horse's last four races to ensure that all of the horse's races are in the record:

a. Where and when the horse raced;

b. The distance, weight carried, and amount earned; and

c. The finishing position and time of the race.

10. 12. If a race overfills, the racing secretary shall ensure that the second half of an entry has no starting preference over a single entry except in stakes, handicap, and qualifying races.

11. 13. An owner entering two or more horses in a race shall indicate the owner's preference for the horse that is to start if the race overfills. The owner shall make the claim of preference by noting the preference on the entry blank. An owner who fails to make a claim of preference loses the preference.

14. The racing secretary shall ensure that a horse excluded because a race overfills receives no consideration.

12.15. Two or more horses entered in a race may be uncoupled for wagering purposes if approved by the stewards, and:

a. All horses are owned, in whole or in part, by the same person; or

b. All horses are trained by a trainer who owns an interest in one of the horses.

13. 16. In a race in which spouses who are both licensed trainers have entered horses, the trainers are not required to list an overfill preference unless there is common ownership of the horses entered.

14. 17. The racing secretary shall decide whether to use an also-eligible list for any race meet:

a. The racing secretary shall determine the number of also-eligibles if the number of entries in a race exceeds the capacity of the starting gate;

b. If the number of entries in a race exceeds the number of horses permitted to start, the racing secretary shall determine the starters in a drawing supervised by a steward and witnessed by those making entries. If any of the starters declare out, the racing secretary shall draw from the also-eligible list the number of horses needed to fill the vacancies in the race;

c. The racing secretary shall assign horses, other than quarter horses, that gain a position in a race from the also-eligible list, to the outside post positions in the order in which they are drawn from the list. The racing secretary shall assign a quarter horse to the stall of a horse that is declared out;

d. If a horse on the also-eligible list does not start because of insufficient declarations, the racing secretary shall place the horse on the preferred list unless the owner has declined to accept an opportunity to start the horse;

e. A horse whose owner, trainer, or authorized agent has drawn its position in a race and entered it again for the next race day is called an "in today horse."

i. e. If a race in which a horse is entered overfills, the racing secretary shall not consider an in-today horse for the race unless the conditions for the race read "Arizona Breds Preferred," or the race is a stakes or handicap race.

ii. f. The racing secretary shall not consider a horse on the also-eligible list as an in-today horse until it has been given a position in a race or an opportunity to run.

f. g. At tracks where entries are taken two or more days before the date of a race, an owner, trainer, or authorized agent may enter a horse for the next race date if the horse has been placed on the also-eligible list for the first race date. If the horse is drawn into a race from its position on the also-eligible list, the racing secretary shall declare the horse an in-today horse and withdraw the horse from the race on the next race day in favor of a horse on the also-eligible list for that race.

15. A person shall make a claim of preference at the time of entry by noting it on the entry blank or the preference will be lost.

a. 18. After a horse is entered in a race, a person shall withdraw the horse only with permission of the stewards.

b. 19. The racing secretary shall post a copy of the preferred list each afternoon. The stewards shall recognize a claim of error in the preferred list only if the claim of error is made by 10:00 a.m. of the day after the preferred list is posted.

16. 20. If an owner, trainer, or authorized agent does not declare a horse from the also-eligible list by the prescribed time, the racing secretary shall consider the owner or trainer willing to start the horse if another horse is scratched from the race. The racing secretary shall not place a horse on the preferred list if the owner or trainer does not accept the opportunity to start the horse.

17. 21. A person shall not alter an entry after the closing of entries. The racing secretary may correct an error in an entry at any time.

18. 22. If the name of a horse is changed, the racing secretary shall publish the new name and the former name in the official entries for the horse's first three starts after the name change. If the name of an Arizona-bred horse is changed, the racing secretary shall report the name change to the Department in writing within 30 days, listing both the new and former names.

B.Conditions for entry.

1. A person shall not enter a horse in a race unless the horse's certificate of foal registration, certificate of foreign registration, or racing permit is on file in the office of the racing secretary or permission is granted by the stewards. Foal certificates that are registered with the racing secretary and are in transit between the office of the racing secretary and the American Quarter Horse Association because of a transfer of ownership are considered to be in the possession of the racing secretary.

2. A horse that has reached its 14th birthday is ineligible to race in Arizona.

3. The stewards shall not permit a horse to run in a purse or stakes race unless the horse is entered in and eligible for the race.

4. The stewards may require a person in whose name a horse is entered to produce proof that the horse entered is not the property, either in whole or in part, of a person who is disqualified, or to produce proof of the extent of the person's interest in the horse. If the person fails to produce satisfactory proof, the stewards shall declare the horse out of the race if the stewards determine that declaring the horse is necessary to protect the public peace, safety, or welfare.

5. A person shall not enter a horse if the horse is on the stewards', paddock judge's, starter's, or veterinarian's list, or if the horse has been ruled off.

6. The racing secretary shall consider the performance record of a horse racing on the county fair circuit to determine the horse's eligibility at a commercial meet. A county fair racing secretary shall place a county fair win on the back of the horse's foal certificate.

7. The owner, trainer, or authorized agent shall ensure that a horse that has not started during the 45 days before a commercial meet has one official workout before starting at the commercial meet.

8. The racing secretary shall not allow a first-time starter to race until the horse has gate approval and at least two timed workouts, one of which is out of the gate and within 30 days before the race in which the horse is entered.

9. The racing secretary shall not allow a horse, other than a first-time starter, that has not started for one year or more to race unless the horse:

a. Completes at least two timed workouts within 60 days before the race in which the horse is entered; and

b. One of the timed workouts is performed in the presence of the track veterinarian at a distance determined by the track veterinarian.

10. The racing secretary shall not allow a quarter horse to be entered for the first time in a race around a turn unless the horse has at least one timed workout around the turn.

11. The Department shall waive workout requirements for a county fair meet not run at a commercial track except the owner or trainer of a horse that has not started for one year or more shall complete a workout schedule with and determined by the state veterinarian before entry in the country fair meet.

C.Starts.

1. A person shall not start a horse in a race unless the horse is fully identified and tattooed, or otherwise authorized by the stewards. The Department shall hold a person, including the breeder, owner, trainer, and identifier, responsible for the accuracy of information the person provides regarding the identity of a horse.

2. An owner, trainer, or authorized agent shall not start a horse in a race until all stakes, forfeits, entry fees, and arrears due on the horse have been paid.

3. The racing secretary shall not permit a horse to start in a stakes race unless it has passed the entry box on the day on which entries for the stakes race are taken.

4. 3. An owner, trainer, or authorized agent shall not start a horse in a race unless all persons having an ownership interest in the horse or an interest in the winnings of the horse have registered with the racing secretary.

5. 4. The racing secretary shall display the post-position numbers of the horses in a race after overnight entries are closed and post positions are drawn. If a horse with an assigned post-position number does not start or run the track, the stewards may require an explanation from the owner, trainer, or jockey.

D.Fees.

1. Entrance to a purse race is free unless otherwise stipulated in the conditions of the race. If the conditions require an entrance fee, the fee is due at the time of entry.

2. The licensee entering a horse shall pay the nominating, sustaining, and starting fees. Except as provided in subsection (D)(4), the permittee shall not refund any fees paid to enter a horse in a race even if the horse dies, is withdrawn, or there is a mistake in the horse's entry if the horse was eligibleat the time of entry.

3. If the conditions of a purse race require that an entrance fee be paid, the permittee shall not refund the entrance fee if the purse race is run even if a horse fails to start or dies except as provided in the conditions of the race.

4. The permittee shall distribute the entrance money, starting, and subscription fees as provided in the conditions of the race. If a race is not run, the permittee shall refund all stakes or entrance money.

5. The death of a nominator or subscriber does not void an entry, subscription, or right of entry.

6. A licensee shall not transfer a horse to an owner or trainer to avoid disqualification. As provided in A.R.S. § 5-108.05, the Department may fine or suspend the licensee making or receiving a transfer to avoid disqualification.

E.Closing.

1. The racing secretary shall close entries for a purse race at the time advertised in the condition book specifying the terms of the race and shall not accept an entry after that time. If a race fails to fill, additional time for entries may be granted by the stewards.

2. Unless contrary notice is provided by the permittee, nominations for stakes that close during or on the eve of a race meet close at the office of the racing secretary at the published time.

3. The racing secretary shall not accept entries or declarations for stakes after the designated closing time.

4. The racing secretary shall not accept an entry after a race has been drawn even if the number of horses on the also-eligible list is insufficient to provide a full field.

5. The racing secretary shall consider a horse to be a scratch if the horse is withdrawn from a race after the overnight entries are closed. The scratched horse loses all of the horse's accrued preferences up to the date of the scratch unless the horse is excused by the stewards.

F.Declarations.

1. An owner, trainer, or authorized agent shall declare a horse from a stakes, handicap, or qualifying race in writing no later than one hour before post time for the race.

2. The racing secretary shall not give preference to a horse that is declared from the also-eligible list of a race . The horse may retain the position previously held on the preferred list if a full field is left in the race at scratch time.

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended effective March 20, 1990 (Supp. 90-1). Age reference to "16th birthday" in subsection (B)(2) corrected to read "6th birthday" (Supp. 93-1). R19-2-113 recodified from R4-27-113 (Supp. 95-1). Amended effective April 7, 1995 (Supp. 95-2). Amended effective March 7, 1996 (Supp. 96-1). Amended by final rulemaking at 10 A.A.R. 717, effective April 3, 2004 (Supp. 04-1). Amended by final rulemaking at 19 A.A.R. 3412, effective November 30, 2013.

Ariz. Admin. Code § R19-2-114 Penalties and Allowances

A. After consideration of the reports, records, and statistics published by the Daily Racing Form and other racing statistical publications, the stewards shall determine eligibility, penalties, and allowances. The owner and trainer of a horse shall ensure that the horse is eligible and carries the correct weight.

B.Penalties and allowances are not cumulative unless the racing secretary declares penalties and allowances to be cumulative by the conditions of the race. Penalties and allowances take effect at the time a race starts except that in an overnight event, a horse shall have only the allowance to which it was entitled at the time of entry.

C.Penalties are obligatory. Allowances are optional in whole or in part. In an overnight event, if an allowance is claimed, a horse's owner or trainer shall claim the allowance at the time of entry.

D. The stewards shall not disqualify a horse if the failure of the horse's owner or trainer to claim a weight allowance results from an omission made by the racing secretary on the overnight listing of races. If an owner or trainer claims a weight allowance to which a horse is not entitled, the stewards shall disqualify the horse only if the incorrect weight is carried in the race. The Department shall subject a person who claims a weight allowance to which the person's horse is not entitled to discipline authorized under A.R.S. § 5-108.05.

E. The stewards shall ensure that a horse does not receive a weight allowance or is not relieved from a weight penalty as a result of having lost one or more races. This Section does not prohibit a maiden allowance or an allowance to a horse that has not won a race within a specified period or a race of a specified value.

F. The stewards shall ensure that a horse:

1. Does not incur a weight penalty for placing in a race from which the horse is disqualified;

2. Incurs a weight penalty if the horse places as a result of the disqualification of another horse ; and

3. Is not disqualified for failing to take a weight penalty in a race if the penalty results from the horse placing in a previous race after the race to which the weight penalty would be applicable is run.

G. The stewards shall ensure that when a race is in dispute, both the horse that finished first and any horse claiming to have finished first incur the weight penalty that attaches to the winner of the race until the matter is decided.

H. The stewards shall consider a horse that starts for a claiming price in optional or combination races to have started in a claiming race.

I. When the conditions of a race indicate the race is to be run under "scale weights" or "weights for age," the stewards shall ensure that the race is run under the scale approved by the Department.

J. The stewards shall ensure that in races of intermediate length, all horses carry weights for the shorter distances

K.In all races except handicap races and races in which conditions expressly provide otherwise:

1. Two-year-old fillies are allowed three pounds,

2. Fillies and mares that are 3 years old and older are allowed five pounds from January 1 through August 31 and three pounds from September 1 through December 31; and

3. The provisions of subsections (K)(1) and (2) do not apply to quarter horse fillies and mares.

L. The racing secretary may write races either above or below the scale, in the racing secretary's discretion; provided that:

1. Not more than 10 pounds shall be deducted from the scale of weights for age with the exception of allowances in overnight races.

2. The total allowances of any type shall not reduce the lowest weights below 100 pounds in any race.

3. The provisions of subsection (L)(1) of this Section shall not apply to handicap races.

4. The provisions of subsection (L)(2) of this Section shall not apply to 2-year-olds racing with older horses.

M. Starter allowance eligibility conditions.

1. A horse shall have started in a claiming race, or in an optional claiming race to be claimed, in order to establish eligibility in a starter allowance race.

2. In addition to the provisions of subsection (M)(1) of this Section, to be eligible for a starter allowance a horse shall:

a. Have started for the claiming price designated in the conditions of the race or have started for a price less than that claiming race.

b. Not have won for a price higher than that designated in the conditions of the race since last starting for that price or for less than that price.

c. Not have won a race other than a claiming race since last starting for the claiming price designated in the conditions of the race or for less than that price.

3. A horse claimed in a claiming race must subsequently start for a claiming price to establish new eligibility for a starter allowance race.

4. Eligibility for a starter allowance race remains unchanged following a private sale.

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended effective March 20, 1990 (Supp. 90-1). R19-2-114 recodified from R4-27-114 (Supp. 95-1). Amended by final rulemaking at 10 A.A.R. 717, effective April 3, 2004 (Supp. 04-1). Amended by final rulemaking at 19 A.A.R. 3412, effective November 30, 2013.

Ariz. Admin. Code § R19-2-115 Claiming Races

A.Eligibility for claiming. In a claiming race, any horse is subject to being claimed for the horse entered price by any licensed owner of a horse duly registered for racing at the track, the owner's licensed authorized agent, or the holder of a claiming authorization issued by the stewards.

B.Duration of race meets. For the purpose of claiming:

1. A commercial race meet includes county fair race meets that may be run at the commercial track before, during, or after the commercial race meet; and

2. A county fair race meet includes both spring and fall of the county fair circuit.

C.Steward claiming authorization.

1. The following persons may apply to the stewards for claiming authorization:

a. A licensed owner whose last horse was lost by claim, death, or career-ending injury during a commercial or county fair race meet;

b. An individual licensed in partnership or other form of multiple ownership who wants to claim a horse in sole ownership;

c. A currently licensed individual who wants to join in a multiple ownership venture;

d. A licensed owner whose horse is not participating at an Arizona track during the current Arizona licensing cycle; and

e. An individual who submits an application for an owner's license under R19-1-106 and intends to obtain a first horse through claiming. If the stewards determine the individual is qualified for an owner's license except for the requirement of horse ownership, the stewards may authorize the individual to claim a horse. The Department shall issue an owner's license to the individual if the individual is successful in claiming a horse.

2. To apply for claiming authorization, an individual shall submit to the stewards a written:

a. Application, using a form available from the Department; and

b. Acknowledgment that a successfully claimed horse will be entrusted to the care and custody of a licensed trainer only.

3. Claiming authorization obtained under this subsection is valid for six months or until the authorized individual successfully claims a horse, whichever occurs first.

D.Claiming restrictions.

1. An authorized agent, even if representing more than one owner, shall not submit more than one claim in any race.

2. An authorized agent shall not claim a horse for the authorized agent in the capacity as authorized agent.

3. When a stable consists of horses owned by more than one person, the stable owners shall ensure that no more than one claim is submitted in a race by or on behalf of the stable owners.

4. The stewards may, at their discretion, require a person making a claim for a horse to provide a written affidavit that the claim is made for the person's own account or as an authorized agent and not for any other person.

5. A person shall not:

a. Enter into or offer to enter into an agreement to claim or not to claim a horse in a claiming race,

b. Attempt to prevent another person from claiming a horse in a claiming race, and

c. Attempt to prevent anyone from running a horse in a claiming race.

6. The owner of one horse and the trainer of a second horse running in the same claiming race shall not make or offer to make an agreement not to claim each other's horses.

7. A person shall not enter or allow to be entered in a claiming race a horse against which there is a lien unless written consent from the lien holder is first filed with the clerk of the track or the racing secretary.

8. A person shall not assert an ownership interest in a horse after the horse has run in a claiming race in the name of another person who, at the time of the race, had peaceable and undisputed possession of the horse.

9. A person shall not claim or cause to be claimed, directly or indirectly, for the person's account, a horse in which the person has an ownership interest.

10. An owner shall not claim a horse in the care and custody of the owner's trainer.

E.Delivery of a claimed horse.

1. The owner of a claimed horse shall ensure that the horse is delivered to the claimant after the claiming race is run. The claimant shall present to the owner the written claiming authorization obtained from the stewards under subsection (C).

2. The owner of a claimed horse sent to the detention area for post-race testing shall deliver the horse to the claimant at the detention area. The owner of a claimed horse not sent for post-race testing shall deliver the horse to the claimant as instructed by the stewards.

3. If the stewards do not send a claimed horse for post-race testing, the claimant may require post-race testing if physical delivery of the claimed horse has not occurred and the claimant pays for the testing. The trainer of a claimed horse sent for post-race testing shall maintain care and custody of the horse. If a post-race test of a claimed horse is positive for a prohibited substance, the claim may be voided at the direction of the stewards.

4. The owner of a claimed horse shall not refuse to deliver the horse to the claimant.

F.Irrevocability of a claim. A claimed horse shall race for the account of the horse's original owner but title to the horse shall transfer to the claimant when the horse becomes a starting horse. After title to the horse transfers to the claimant, the claimant becomes the owner of the horse regardless of whether it is alive or dead, sound or unsound, or injured before, during, or after the claiming race.

G.Ownership restrictions.

1. If a horse is claimed, the claimant:

a. Shall not sell or transfer the horse to anyone, wholly or in part, except in another claiming race, for 30 days from the day of claim; and

b. Shall not return the horse to the same stable or under control or management of the horse's former owner or trainer for 30 days from the day of claim unless the horse is reclaimed in another claiming race.

c. Shall ensure that the claimed horse does not race outside of Arizona until the race meet at which the horse was claimed is closed or for 60 days from the day of claim, whichever is less, except:

i. To fulfill a stakes engagement that transferred automatically to the claimant, or

ii. If the horse was claimed for a price that causes the horse to be ineligible to be reentered at the track where claimed.

The stewards shall ensure that a horse claimed in another state and entered to race in Arizona is subject to the claiming restrictions in the state where the claim was made. Restrictions preventing the horse from racing in Arizona are applicable only until the close of the race meet at which the horse was claimed or for 60 days, whichever is less, except:

a. To fulfill a stakes engagement that transferred automatically to the claimant, or

b. If the horse was claimed for a price that causes the horse to be ineligible to be reentered at the track where claimed.

3. In this subsection, the day following the claim is the first day.

H.Claiming price. The permittee shall ensure that the claiming price of each horse in a claiming race is published in the official race program. A person who wishes to claim a particular horse shall submit a claim for the amount published.

I.Determining the winner of a claim. If more than one claim is filed for the same horse, the stewards shall ensure that the successful claimant is chosen in a drawing that is conducted under the supervision and direction of the stewards.

J.Responsibility for determining sex and age of horse. The claimant shall determine the sex and age of a horse before submitting a claim for the horse and shall not rely on any designation of the horse's sex and age that appears in the official race program or any other racing publication.

K.Claiming procedures.

1. To make a valid claim, a person who has a claiming authorization obtained under subsection (C) shall:

a. Deposit with the horsemen's bookkeeper an amount equal to the claiming price;

b. Compete a written claim using a form furnished by the permittee and approved by the Department;

c. Identify the horse to be claimed by the spelling of the horse's name on the horse's certificate of registration or as spelled in the official race program;

d. Write the following information on the outside of an envelope provided by the permittee with the claim form:

i. Number of the race on which the claim is made; and

ii. Day, month, and year of the claiming race;

e. Seal the completed claim form in the completed envelope and ensure there are no identifying markers on the outside of the envelope except as described in subsection (K)(d); and

f. Deposit the completed claim form and envelope in the claim box at least 10 minutes before post time of the race on which the claim is made.

2. The stewards shall open the claim envelops for a claiming race when the horses for the race enter the track on the way from paddock to post.

3. The stewards shall ascertain from the horsemen's bookkeeper whether an amount equal to the claiming price is on deposit.

4. After a claim form is deposited in the claim box as described in subsection (K)(1)(f), the claim is irrevocable by the claimant. The stewards shall ensure that a claim form deposited in the claim box is not withdrawn from the claim box except by the stewards at the time designated by the stewards.

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended subsection (A) effective December 5, 1985 (Supp. 85-6). Amended effective March 20, 1990 (Supp. 90-1). Former Section R4-27-115 renumbered to R4-27-115, R4-27-115.02 through R4-27-115.07, and R4-27-115.09; new Section R4-27-115 renumbered from R4-27-115(A)(1) through (5) and (B) and amended effective September 8, 1992 (Supp. 92-3). R19-2-115 recodified from R4-27-115 (Supp. 95-1). Amended by final rulemaking at 19 A.A.R. 3412, effective November 30, 2013.

Ariz. Admin. Code § R19-2-115.01 [REPEALED]

History

• Adopted effective September 8, 1992 (Supp. 92-3). R19-2-115.01 recodified from R4-27-115.01 (Supp. 95-1). Repealed by final rulemaking at 19 A.A.R. 3412, effective November 30, 2013.

Ariz. Admin. Code § R19-2-115.02 [REPEALED]

History

• Section R4-27-115.02 renumbered from R4-27-115(A)(6)(a), (b), and (d), (C)(3), (4), (6)(c)(i) and (ii), (10)(a) and (12) and amended effective September 8, 1992 (Supp. 92-3). R19-2-115.02 recodified from R4-27-115.02 (Supp. 95-1). Amended by final rulemaking at 19 A.A.R. 3412, effective November 30, 2013.

Ariz. Admin. Code § R19-2-115.03 [REPEALED]

History

• Section R4-27-115.03 renumbered from R4-27-115(C)(1), (7) and (8), (F)(1), (2), and (3), (G)(1) and (2), (L), (M), and (N) and amended effective September 8, 1992 (Supp. 92-3). R19-2-115.03 recodified from R4-27-115.03 (Supp. 95-1). Amended by final rulemaking at 19 A.A.R. 3412, effective November 30, 2013.

Ariz. Admin. Code § R19-2-115.04 [REPEALED]

History

• Section R4-27-115.04 renumbered from R4-27-115(H), (H)(1), (2), (3) and (4), and (I) and amended effective September 8, 1992 (Supp. 92-3). R19-2-115.04 recodified from R4-2-115.04 (Supp. 95-1). Amended by final rulemaking at 19 A.A.R. 3412, effective November 30, 2013.

Ariz. Admin. Code § R19-2-115.05 [REPEALED]

History

• Section R4-27-115.05 renumbered from R4-27-115(C)(10) and (11) and (E) and amended effective September 8, 1992 (Supp. 92-3). R19-2-115.05 recodified from R4-27-115.05 (Supp. 95-1). Amended by final rulemaking at 19 A.A.R. 3412, effective November 30, 2013.

Ariz. Admin. Code § R19-2-115.06 [REPEALED]

History

• Section R4-27-115.06 renumbered from R4-27-115(J)(1), (2), (3), and (4) and (K) and amended effective September 8, 1992 (Supp. 92-3). Amended effective December 17, 1993 (Supp. 93-4). R19-2-115.06 recodified from R4-27-115.06 (Supp. 95-1). Amended by final rulemaking at 10 A.A.R. 717, effective April 3, 2004 (Supp. 04-1). Amended by final rulemaking at 19 A.A.R. 3412, effective November 30, 2013.

Ariz. Admin. Code § R19-2-115.07 [REPEALED]

History

• Section R4-27-115.07 renumbered from R4-27-115(C)(9) and (D) and amended effective September 8, 1992 (Supp. 92-3). R19-2-115.07 recodified from R4-27-115.07 (Supp. 95-1). Amended by final rulemaking at 19 A.A.R. 3412, effective November 30, 2013.

Ariz. Admin. Code § R19-2-115.08 [REPEALED]

History

• Section R4-27-115.08 adopted effective September 8, 1992 (Supp. 92-3). R19-2-115.08 recodified from R4-27-115.08 (Supp. 95-1). Amended by final rulemaking at 19 A.A.R. 3412, effective November 30, 2013.

Ariz. Admin. Code § R19-2-115.09 [REPEALED]

History

• Section R4-27-115.09 renumbered from R4-27-115(C), (C)(2), (5), and (6) and amended effective September 8, 1992 (Supp. 92-3). R19-2-115.09 recodified from R4-27-115.09 (Supp. 95-1). Amended by final rulemaking at 19 A.A.R. 3412, effective November 30, 2013.

Ariz. Admin. Code § R19-2-115.10 [REPEALED]

History

• Section R4-27-115.10 adopted effective September 8, 1992 (Supp. 92-3). R19-2-115.10 recodified from R4-27-115.10 (Supp. 95-1). Amended by final rulemaking at 19 A.A.R. 3412, effective November 30, 2013.

Ariz. Admin. Code § R19-2-116 Arizona Bred Eligibility and Breeders' Award Payments

A. A breeder shall file a notarized certificate affirming eligibility under A.R.S. § 5-113(F), with the Department. The certificate shall include name, color, and sex of the foal; name of the sire; name of the dam; date and location of foaling; The Jockey Club registration number or American Quarter Horse Association number; name, address, and telephone number of the breeder; a statement that the animal is eligible pursuant to A.R.S. § 5-113(F), and that the person shown as the breeder was the owner of the dam at the time of foaling; and such other information as may be required by the Department to determine eligibility and shall be signed by the breeder. The breeder shall submit a copy of The Jockey Club registration papers with certificates for thoroughbreds.

1. Certification is deemed to occur upon the Department's receipt of the completed certificate.

2. The horse shall be certified by the Department at the time of the win to be eligible for an award.

B. A permittee shall recognize any horse for which there is an Arizona Bred Certificate on file with the Department or an association contractor as an Arizona bred horse.

C. For races that offer a guaranteed purse value of $50,000 or less, the Department shall make an award based on the total amount earned by the winner, including nominating, sustaining, and starting fees. For races that offer a guaranteed purse value of more than $50,000, the Department shall not include nominating, sustaining, or starting fees when calculating an award.

D. The Department shall calculate and pay breeders' awards to eligible breeders.

1. Definitions

a. "Quarterly Breeders' Award" means an amount of money based on the quarterly breeders' award payment factor determined by the Department each fiscal year by October 30.

b. "Substitute Breeders' Award" means an amount of money based on a substitute payment factor because of the lack of sufficient money to pay conventional Quarterly Breeders' Awards.

c. "Supplemental Breeders' Award" means an amount of money that corrects a shortfall between conventional Quarterly Breeders' Awards and Substitute Breeders' Awards.

d. "End-of-year Bonus Award" means an amount of money that may be paid to breeders from available monies that remain in the breeders' award fund after payment of Quarterly Breeders' Awards, Substitute Breeders' Awards and Supplemental Breeders' Awards.

2. The Department shall pay awards at the end of each fiscal year quarter, provided that the total amount of the awards payments does not exceed the total amount of money available in the fund less the amount required to be set aside for contingent liabilities in subsection (D)(8).

3. Quarterly Breeders' Awards. Before October 30 of each year, the Department shall determine a quarterly breeders' award payment factor that will be applied during the entire fiscal year. The payment factor determined by the Department is not subject to appeal.

a. The Department shall evaluate anticipated revenues for the breeders' award fund and anticipated purses for eligible Arizona-bred animals and set the payment factor at a level that permits recipients of quarterly breeders' awards to receive awards throughout the fiscal year based on the same payment factor.

b. The Department shall notify representatives of each breeders' association of the quarterly breeders' award payment factor in writing before October 30 of each year.

c. The Department shall calculate quarterly breeders' awards by multiplying the amount of each purse won by an eligible animal during that quarter by the quarterly breeders' award payment factor established for the fiscal year.

d. The Department shall make quarterly breeders' awards not later than 30 days after the end of each quarter, unless full quarterly breeders' awards cannot be made due to the lack of available money in the fund.

4. Substitute Breeders' Awards. The Department shall make substitute breeders' awards if there are sufficient monies in the fund to allow for an award but not enough monies to provide for full payments of quarterly breeders' awards based on the quarterly breeders' award payment factor.

a. The Department shall determine the substitute payment factor by dividing the total amount of monies in the Arizona breeders' award fund at the end of the quarter less the amount required to be set aside for contingent liabilities in subsection (D)(8) by the total amount of purses won by eligible Arizona-bred animals during that quarter.

b. The Department shall calculate substitute breeders' awards by multiplying the amount of each purse won by an eligible animal during that quarter by the substitute payment factor for that quarter.

End-of-year bonus pool. After payment of all quarterly breeders' awards and any substitute breeders' awards has been calculated, the Department shall determine the amount of monies remaining in the fund. The end-of-year-bonus pool is the amount of monies remaining in the Arizona breeders' award fund after the payment of all quarterly breeders' awards for the fiscal year less the amount required to be set aside for contingent liabilities in subsection (D)(8).

6. Supplemental Breeders Awards. The Department shall first pay any monies in the end-of-year bonus pool in the form of supplemental breeders awards to recipients of substitute breeders' awards.

a. The Department shall pay supplemental breeders' awards in an amount equal to the difference between the substitute breeders' award and the quarterly breeders' award the breeder would have received if there had been enough in the fund to pay an award based on the quarterly award payment factor.

b. In the event the end-of-year bonus pool cannot pay supplemental breeders' awards to make up for the shortfall to all substitute breeders' award recipients, the Department shall pay supplemental breeders' awards to all breeders eligible to receive a supplemental breeders' award on a pro-rata basis.

c. A breeder is eligible to receive a supplemental breeders' award from the end-of-year bonus pool only if the breeder received a substitute breeders' award during that fiscal year.

d. The Department shall not make supplemental breeders' awards if all eligible breeders received quarterly breeders' awards during the fiscal year.

7. End-of-year Bonus Awards. The Department shall pay end-of-year bonus awards if monies remain in the end-of-year bonus pool following any supplemental payments.

a. The Department shall determine an end-of-year bonus payment factor by dividing the monies in the end-of-year bonus pool by the total amount of purses won by an eligible animal during the fiscal year.

b. The Department shall calculate end-of-year bonus awards by multiplying the amount of each purse won by an eligible animal by the bonus payment factor.

8. Contingent liabilities. The Department shall retain $10,000 in the Breeders' Award fund for contingent liabilities.

9. The Department shall not make quarterly breeders' awards, substitute breeders' awards, supplemental breeders' awards or end-of-year bonus breeders' awards if the total amount available for distribution is less than $10,000. In the event the Department does not pay an award because less than $10,000 is available for distribution, the Department shall carry forward the amount in the fund for payment of awards when the Department next calculates awards.

10. Appeal of Director's Rulings

a. The Director shall make the final decision concerning a breeders' award.

b. The Department shall give written notice of the decision to an applicant by mailing it to the address of record filed with the Department.

c. After service of the Director's decision, an aggrieved party may obtain a hearing under A.R.S. §§ 41-1092.03 through 41-1092.11.

d. The aggrieved party shall file a notice of appeal with the Department within 30 days after receiving the notice prescribed in R19-2-116(D)(10)(b).

e. The Department shall notify the Office of Administrative Hearings, which shall schedule and conduct the hearing.

E. The permittees shall submit to the Department an Arizona Breeders' Award Report in the form prescribed by the Department. The report shall include name of the animal, name of the breeder, date of win, win purse amount, type of race, name of track, and such other information as may be required by the Department to calculate awards.

F. The Arizona Thoroughbred Breeder's Association, Arizona Quarter Racing Association, Arizona Greyhound Breeder's Association, and such other associations as may represent breeders in this state may assist the Department in periodic reviews of eligibility lists and may provide such other assistance in administering the fund as may be required by the Department.

G. At least every other three years the Commission shall select a committee, consisting of representatives of each breeders' association and the Department, which shall review this rule and submit written recommendations to the Commission.

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended subsection (A) effective December 5, 1985 (Supp. 85-6). Amended subsection (A) and added subsections (D) through (G) effective August 13, 1986 (Supp. 86-4). Amended subsection (D) effective February 19, 1987 (Supp. 87-1). Amended effective March 20, 1990 (Supp. 90-1). R19-2-116 recodified from R4-27-116 (Supp. 95-1). Amended effective January 10, 1997 (Supp. 97-1). Amended effective June 3, 1997 (Supp. 97-2).

Ariz. Admin. Code § R19-2-117 Objections

A. Every objection shall be made by an owner or by such owner's authorized agent, a trainer, or the jockey of some other horse engaged in the same race, or by the officials of the course. Such objection shall be made to the stewards, who may require that the objection be made in writing with a copy thereof sent immediately to the Director.

1. Any objection to a horse, pertaining to any matter occurring in a race, except as otherwise provided, shall be made before the official numbers of the horse's place in the race are posted on the odds board.

2. Any objection to a horse that has run in a race on the grounds that it was not trained by a licensed trainer, or ridden by a licensed jockey, or that the names of all those having ownership in it or an interest in its winnings have not been registered with the secretary shall be made not later than the day after that upon which the race was run.

3. Any objection on the grounds of fraudulent or intentional misstatement or omission in the entry under which a horse has run, or on the grounds that the horse which ran was not the horse it was represented to be in the entry or at the time of the race, or was not of the age it was represented to be shall be received within three days after the race.

B. Every objection, unless otherwise provided, shall be made within 72 hours after the race is run and shall be determined by the stewards.

C. Pending the determination of an objection, any money or prize which the horse objected to may have won, or may win in the race, shall be withheld until the objection is determined, and any sum payable to the owner of the horse objected to shall be paid to the horsemen's book keeper and held for the person who may be determined to be entitled to it.

D. Pending the disposition by the stewards, Department, or Commission of any question, both the horse which finished first and any horse which has claimed to be the winner of the race shall be liable to all the penalties attaching to the winner of that race until the matter is decided.

E. If an objection to a horse which has won or been placed in a race is declared valid, that horse may be disqualified in the place in which he finished and replaced at the discretion of the stewards.

F. The stewards shall have the power at any time, whether or not an objection has been made, to order an examination by such person or persons as they deem fit as to the age of any horse entered for a race, or which has run a race and shall withhold any money the horse may have won until such examination is made. If the horse is declared of wrong age, the expense of such examination shall be paid by the owner.

G. No person shall lodge an unsubstantiated objection with the stewards.

H. The stewards may require a cash deposit of $200 to cover costs and expenses in determining an objection. The deposit posted herein may be forfeited if the objection should prove to be without foundation.

I. Every objection which is not decided by the stewards during the meeting shall be filed in writing with the Director.

J. Permission of the stewards shall be necessary before an objection may be withdrawn.

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended effective March 20, 1990 (Supp. 90-1). Section number corrected (Supp. 93-1). R19-2-117 recodified from R4-27-117 (Supp. 95-1).

Ariz. Admin. Code § R19-2-118 Scale of Weights for Age

Generally:

1. For thoroughbreds in races exclusively for 3-year-olds and up, the weight is 118 to 124 pounds; for 2-year-olds, the weight is 117 to 120 pounds.

2. For quarter horses in races exclusively for 3-year-olds or 4-year-olds, the weight is 126 pounds; and in races exclusively for 2-year-olds, it is 120 to 122 pounds.

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended effective March 20, 1990 (Supp. 90-1). Section number corrected (Supp. 93-1). R19-2-118 recodified from R4-27-118 (Supp. 95-1).

Ariz. Admin. Code § R19-2-119 Running the Race and Winnings

A.Generally.

1. The permittee shall conspicuously post all track rules and file a copy of the rules with the Department.

2. The permittee shall ensure that post times are based on the number of races run daily and that all races are off at regular intervals. The permittee shall set the intervals with the approval of the stewards.

3. The permittee shall pay purse monies earned by a horse to only the horse's registered owner or the owner's authorized agents.

4. In a stakes race that is a walkover, unless otherwise specified in the conditions of the race, the entry that appears for the race may walk over the track and be declared the winner. The permittee shall pay the walkover the entire stakes and the winning percentage of the purse.

B.Pre-race activity.

1. The paddock judge shall ensure that the number on the saddle cloth of a horse corresponds with the horse's number on the official race program.

2. When a horse arrives in the paddock, the trainer shall remove all blankets and bandages except bandages the horse will wear during the race.

3. The stewards shall scratch a horse that arrives late in the paddock and is not ready to step onto the track with other horses entered in the same race.

2. 4. Each horse shall parade and carry the horse's weight from the paddock to the starting post.

3. 5. If a horse is led to the post with permission of the paddock judge, the horse shall carry the horse's weight and pass the stewards' stand on the way to the post.

4. 6. After the horses are ordered to the starting post and until the stewards direct the track gates to be reopened, the stewards shall exclude all persons except licensees designated by the stewards from the track.

5. 7. After the horses enter the track, no more than 12 minutes shall elapse during the parade of the horses to the post, except with the approval of the stewards.

6. 8. After passing the stand once, the horses may break formation, canter, warm up, or move in any other manner until the horses are within 100 yards of the post.

C.Races.

1. The Department shall ensure that all races are started by a starting gate approved by the Department.

a. A race may be started without a stall gate or a gate with the doors open may be used if necessary and with the permission of the stewards.

b. If a race is started without a stall gate, the official starter shall insure there is no start until, and no recall after, a starter's assistant drops the starter's flag in response to the order of the official starter.

2. If there is an unavoidable delay in starting a race, the starter shall instruct the riders to dismount and lead their horses.

3. A horse may be excused by the stewards and, if excused, shall not be considered to have started in the race if the horse is:

a. Deemed unfit to start during the post parade, or

b. Injured by an accident in the gate.

4. A horse that misbehaves in the gate and causes an undue delay in the start of a race may be excused by the starter after consultation with the stewards. The horse shall not be considered to have started in the race, but shall be penalized by being put on the schooling list. As specified in R19-2-113(B)(1)(5), a horse on the starter's schooling list is not eligible for entry in races until the starter, with the approval of the stewards, removes the horse from the schooling list.

5. A race shall not be run if conditions do not allow the horses to be plainly seen from the stand by the judges and stewards.

6. Every horse in a race is entitled to racing room. A horse or jockey shall not deliberately pocket another horse. In a straightaway race, each horse shall maintain the position in the lane in which the horse starts as nearly as possible.

7. If a horse is ridden or drifts out of its lane in a manner that interferes with or impedes another horse, a foul is committed. The stewards may disqualify the horse committing the foul if the outcome of the race is affected by the foul. The stewards may place the horse committing the foul behind the horse fouled. The provisions of this subsection apply to fouls caused by the horse or the jockey and fouls caused intentionally or unintentionally.

a. If part of an entry is disqualified, the stewards shall decide whether the disqualification extends to all of the entry. If the disqualification does not extend to all of the entry, the stewards shall specify the part of the entry to which the disqualification extends.

b. The stewards shall not penalize a jockey if the stewards rule that the foul under subsection (C)(7) was caused by the horse, despite obvious efforts of the jockey to maintain the horse in its lane position.

c. If the stewards rule that the foul under subsection (C)(7) was caused by the jockey failing to attempt to prevent the foul or willfully riding the horse out of its lane, the jockey shall be subject to imposition of penalties by the stewards.

8. d. In a race run around a turn, a horse that is in the clear may be taken to any part of the track. If the stewards determine that weaving back and forth in front of another horse is interference or intimidation, the jockey shall be penalized.

9. 8. A jockey shall not cause the jockey's horse to shorten stride with a view to making a complaint. If the stewards decide that an intentional foul was committed in the riding of a race or that a jockey was instructed or induced to ride in a manner that caused a foul, the stewards shall suspend all persons the stewards determine, following a hearing, are guilty of complicity in the foul .

10. 9. When a horse is disqualified by the stewards under A.R.S. Title 5, Chapter 1 and this Chapter, the stewards shall disqualify and replace every horse in the race that belongs wholly or in part to the same owner or is under the management of the same trainer, if the stewards find there is good cause to disqualify and replace the other horses.

11. 10. A horse shall be ridden across the finish line carrying the horse's assigned weight to participate in the purse distribution of a race unless the nomination blank for the race states otherwise.

12. 11. A whip shall not be carried on a 2-year-old in a race on the straightaway before March 1. After April 30, following satisfactory performance out of the gate with a whip and with approval of the starter, a whip may be carried in a race under this subsection.

13. 12. An owner, trainer, handler, or jockey shall not attempt to prevent a horse from running the horse's best and winning.

D.Dead heats.

1. When a race results in a dead heat, the heat shall not be run off.

2. If a race results in a dead heat, all prizes to which the horses finishing in the dead heat would have been entitled shall be divided equally between them.

3. When a dead heat is run for second place and an objection is made and sustained to the winner of the race, the horses that ran the dead heat shall be deemed to have run a dead heat for first place.

4. If the dividing owners cannot agree which owner is to have a cup or other prize that cannot be divided, the question shall be determined by a drawing conducted by the permittee.

5. Each horse that runs a dead heat for a race or place shall be deemed a winner of that race or place and shall be liable as the winner for any penalty or disability incurred.

E.Winnings or wins.

1. To calculate the total winnings of a horse, include all prizes and wins:

a. Until the time for the start of a race regardless of the country in which the prize or win occurred;

b. Until the time of entry for a county fair race meet that does not have an also-eligible list; and

c. This subsection does not apply to a maiden race at a county fair race meet.

2. Winnings include prizes earned by walking over or receiving forfeit.

Winnings do not include second and third place money or the value of any non-monetary prize.

3. 4. Winnings during a year shall be computed from January 1 of the year.

4. 5. If the conditions of a race refer to a winner of a certain sum, the condition means a winner of that sum in a single race unless the conditions specify otherwise.

5. 6. In estimating the net value of a race to the winner, all sums contributed by winner's owner or nominator shall be deducted from the amount won.

6. 7. Winners or losers of steeplechases, hurdle races, thoroughbred races, or mixed quarter horse races shall be considered winners or losers on the flat, and winners or losers on the flat shall be considered winners or losers of steeplechases, hurdle races, thoroughbred races, or mixed quarter horse races.

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended effective March 20, 1990 (Supp. 90-1). Section number corrected (Supp. 93-1). R19-2-119 recodified from R4-27-119 (Supp. 95-1). Amended by final rulemaking at 19 A.A.R. 3412, effective November 30, 2013.

Ariz. Admin. Code § R19-2-120 Veterinary Practices, Animal Medication, and Animal Testing

A. Veterinary practices.

1. The state veterinarian and stewards have authority over a veterinarian licensed by the Department and practicing at a location under the Department's jurisdiction. The state veterinarian shall inform the stewards or Department of a licensed veterinarian who violates A.R.S. Title 5, Chapter 1 or this Chapter.

2. Treatment restrictions.

a. The Department shall authorize only a veterinarian licensed under A.R.S. Title 32, Chapter 21 and by the Department to administer a prescription or controlled medication, drug, or other substance, including a medication, drug, or other substance administered by injection, to a horse at a location under the Department's jurisdiction.

b. Subsection (A)(2)(a) does not apply to administration of the following substances if the substances are administered in levels that do not interfere with post-race testing:

i. A non-injectable nutritional supplement or other substance approved by the state veterinarian;

ii. A non-injectable substance on direction or by prescription of a licensed veterinarian; or

iii. A non-injectable, non-prescription, substance.

c. A licensee shall not possess a hypodermic needle, syringe, or other injectable device at a location under the Department's jurisdiction unless the hypodermic needle, syringe, or other injectable device has been approved by the Department. At a location under the Department's jurisdiction, a veterinarian shall use only one-time use, disposable, hypodermic needles and shall dispose of used needles in a manner approved by the Department.

d. A licensee who has a medical condition that makes it necessary for the licensee to have a hypodermic needle, syringe, or other injectable device at a location under the Department's jurisdiction shall make a written request for permission to the stewards or Department before bringing the device to a location under the Department's jurisdiction. The licensee shall attach to the written request for permission a letter from a licensed physician explaining why it is necessary for the licensee to possess the device and shall comply with all conditions and restriction established by the stewards or Department.

e. A private veterinarian employed by a horse owner shall not have contact with an entered horse on race day before the race in which the horse is entered except to administer furosemide according to standards established in this Section or if the contact is approved by the state veterinarian.

f. The trainer or owner of an entered horse shall ensure that the horse is present at a location under the Department's jurisdiction at least five hours before post time of a race in which the horse is entered.

g. Notwithstanding the provisions of this Section, any veterinarian may treat a horse if an emergency involving the life or health of the horse exists.

3. Veterinarians' records.

a. A veterinarian who treats a horse or performs another professional service at a location under the Department's jurisdiction or who treats a horse that is actively participating in a race meet even if the treatment is provided at a location not under the Department's jurisdiction, shall ensure that a treatment record is maintained on all horses for which the veterinarian prescribes, administers, or dispenses medication or performs other professional services. The veterinarian shall ensure that the treatment record includes at least the following information:

i. Name of horse treated;

ii. Name of medication, drug, or substance administered or prescribed and description of any other professional service performed;

iii. Date and time of treatment;

iv. Name of the horse's trainer;

v. Other information requested by the state veterinarian; and

vi. The treating veterinarian's signature.

b. The veterinarian shall ensure that treatment records are current at all times and make the treatment records available to the stewards or Department within 24 hours after a request is made. The veterinarian shall retain the treatment records for at least one year after the date of treatment.

c. The veterinarian shall retain a copy of all bills or statements provided to the owner or trainer of a treated horse for at least one year after the date of treatment and make the copies available to the Department within 48 hours after a request is made.

B.Prohibited practices.

1. A licensee shall not possess or use a medication, drug, or substance at a location under the Department's jurisdiction if:

a. There is no recognized analytical method to detect and confirm that the medication, drug, or substance has been administered to a horse;

b. Use of the medication, drug, or substance may:

i. Endanger the health and welfare of the horse to which it is administered,

ii. Endanger the safety of the rider of the horse to which it is administered, or

iii. Adversely affect the integrity of racing; or

c. The medication, drug, or substance has not been approved by the U.S. Food and Drug Administration for human or animal use and the Department has not approved use of the medication, drug, or substance.

2. A licensee shall not possess or use a blood doping agent, including but not limited to the following, at a location under the Department's jurisdiction:

a. Erythropoietin,

b. Darbepoetin,

c. Oxyglobin®,

d. Hemopure®,

e. ITPP, or

f. AICAR.

3. A veterinarian who uses extracorporeal shock wave or radial pulse wave therapy on a horse at a location under the Department's jurisdiction shall ensure that all of the following conditions are met:

a. The veterinarian is licensed under A.R.S. Title 32, Chapter 21 and by the Department;

b. The veterinarian informs the Department of the plan to use an extracorporeal shock wave or radial pulse wave therapy machine before the machine is used at a location under the Department's jurisdiction;

c. An extracorporeal shock wave or radial pulse wave therapy treatment is reported to the state veterinarian on a form prescribed by the Department no later than 24 hours after the time of treatment; and

d. A horse treated with extracorporeal shock wave therapy or radial pulse wave therapy does not race for at least 10 days following treatment.

4. A licensee shall not use a nasogastric tube that is longer than six inches to administer a medication, drug, or other substance to a horse within 24 hours before post time of a race in which the horse is entered without permission of the state veterinarian.

5. A licensee shall not participate in chemical or surgical desensitizing of the nerves of a horse intended to be entered in a race at a location under the Department's jurisdiction.

a. The racing secretary shall not accept registration papers for a desensitized horse,

b. A licensee shall not enter a desensitized horse in a race at a location under the Department's jurisdiction, and

c. A licensee shall not race a horse that is desensitized at the time the horse arrives at the receiving barn or saddling paddock.

C.Drug classification and penalties.

1. If the stewards determine that a licensee has violated this Section, the stewards shall consult the Uniform Classification Guidelines of Foreign Substances and Recommended Penalties and the model rule, both of which are established by the Association of Racing Commissioners International (ARCI). After determining the classification level of the violation, the stewards shall impose a penalty on the licensee.

2. The stewards shall investigate an alleged violation of this Section and determine a penalty on a case-by-case basis. The stewards shall consider at least the following factors when determining the penalty to impose:

a. The disciplinary record of the licensee involving a medication, drug, or substance;

b. The potential of the medication, drug, or substance to influence a horse's racing performance;

c. The legal availability of the medication, drug, or substance;

d. Whether there is reason to believe the responsible licensee knew of the administration of the medication, drug, or substance or intentionally administered the medication, drug, or substance;

e. The steps taken by the trainer to safeguard the horse to which the medication, drug, or substance was administered;

f. The probability of environmental contamination or inadvertent exposure due to human drug use;

g. The purse of the race in which the affected horse was entered;

h. Whether the medication, drug, or substance found was one for which the horse was receiving a treatment as disclosed to the Department;

i. Whether there was a suspicious betting pattern in the race in which the affected horse was entered; and

j. Whether the licensed trainer was acting under the advice of a licensed veterinarian.

3. In making a penalty decision under this subsection, the stewards shall distinguish between a medication, drug, or substance that is routinely used to treat a horse and a medication, drug, or substance for which there is no reason that the medication, drug, or substance should be found in any concentration in a test sample taken from a horse on race day.

4. If a licensed veterinarian administers or prescribes a medication, drug, or substance that is not listed in materials identified in subsection (C)(1), the licensed veterinarian shall timely forward the identity of the medication, drug, or substance to the ARCI Drug Testing Standards and Practices Committee or the Racing Medication and Testing Consortium for classification.

5. The Department shall classify a medication, drug, or substance or a metabolite of the medication, drug, or substance found in a pre- or post-race sample that is not classified in the materials identified in subsection (C)(1) as ARCI Class 1 and impose a penalty commensurate with the Class 1 classification on the trainer or owner of the horse from which the sample was taken unless the trainer or owner provides information from the ARCI Drug Testing Standards and Practices Committee or the Racing Medication and Testing Consortium that a different classification is applicable.

6. The Department shall provide written notice of a hearing to a licensee alleged to be involved in a violation of this Section. The Department shall provide an opportunity for the licensee to attend the hearing and written notice of the Department's order.

7. In addition to a penalty issued by the stewards or the Department, the Department shall refer a veterinarian found to be involved in the administration of a medication, drug, or substance carrying a category "A" penalty, as specified in the materials identified in subsection (C)(a), to the Veterinary Medical Examining Board for consideration of further disciplinary action.

8. If the stewards or Department believe a licensee may have committed an act that violates state criminal law, the Department shall make a referral to an appropriate law enforcement agency. Administrative action taken by the stewards or Department does not prohibit criminal prosecution. Criminal prosecution does not prohibit administrative action by the stewards or Department.

9. If the license of a trainer is suspended, the suspended trainer shall not benefit financially during the period of suspension by transferring the custody, care, and control of a horse to another person. The Department shall approve all transfers of the custody, care, and control of a horse from one person to another.

D.Prohibited medications.

1. If the official laboratory finds a prohibited medication, drug, or other substance in a sample from a horse, the Department shall view this as prima facie evidence that the prohibited medication, drug, or other substance was administered to the horse. If a prohibited medication, drug, or other substance is found in a sample from a horse after the horse has raced, the Department shall conclude that the prohibited medication, drug, or substance was present in the horse's body while the horse participated in the race.

2. The following medications, drugs, and substances are prohibited:

a. A medication or drug for which no acceptable threshold concentration has been established,

b. A therapeutic medication in excess of the established threshold concentration,

c. A substance present in a horse in excess of the concentration at which the substance could occur naturally, and

d. A substance foreign to a horse present at a concentration that could interfere with testing procedures.

3. Except as otherwise provided in this Chapter, a licensee shall not administer or cause to be administered to a horse a prohibited medication, drug, or other substance during the 24 hours before post time for a race in which the horse is entered.

E.Medical labeling.

1. Except as provided in subsection (E)(2), a licensee at a location under the Department's jurisdiction shall not have in the licensee's personal property, including a vehicle, or under the licensee's care, custody, or control, a medication, drug, or other substance that is prohibited in a horse on a race day unless the medication, drug, or other substance is prescribed and labeled as specified in subsection (E)(3).

2. Subsection (E)(1) does not apply to a veterinarian licensed under A.R.S. Title 32, Chapter 21 and this Chapter.

3. A licensed veterinarian shall ensure that a prescription is issued for a medication, drug, or other substance that is used or kept at a location under the Department's jurisdiction if federal or state law requires a prescription for the medication, drug, or other substance. The licensed veterinarian shall ensure that the medication, drug, or other substance has a securely attached prescription label containing the following information:

a. Name of the medication, drug, or other substance;

b. Name, address, and telephone number of the veterinarian prescribing or dispensing the medication, drug, or other substance;

c. Name of the horse for which the medication, drug, or other substance is prescribed;

d. Dose, dosage, duration of treatment, and expiration date of the prescribed medication, drug, or other substance; and

e. Name of the licensee to whom the medication, drug, or other substance is dispensed.

F.Non-steroidal anti-inflammatory drugs (NSAIDs).

1. A licensee who determines it is necessary to administer a NSAID to a horse, shall ensure that only the following NSAIDs are used:

a. Phenylbutazone,

b. Flunixin, or

c. Ketoprofen.

2. A licensee who administers one of the NSAIDs listed in subsection (F)(1) to a horse shall ensure that:

a. The administration occurs at least 24 hours before the post time for a race in which the horse is entered; and

b. The serum or plasma threshold concentration of the NSAID does not exceed the following, which is consistent with administration of a single intravenous injection:

i. Phenylbutazone - 5 micrograms per milliliter;

ii. Flunixin - 20 nanograms per milliliter; and

iii. Ketoprofen - 10 nanograms per milliliter.

3. A licensee shall ensure that administration of more than one of the NSAIDs listed in subsection (F)(1) to a horse is discontinued at least 48 hours before the post time for a race in which the horse is entered.

4. A licensee shall not administer a NSAID to a horse within 24 hours before post time for a race in which the horse is entered.

5. The Department shall subject a horse to which a NSAID has been administered to post-race blood or urine sampling supervised by the state veterinarian. The Department shall ensure that the samples are tested to determine the quantitative NSAID level and whether other medications, drugs, or substances are present. The Department shall take disciplinary action against the horse's trainer if the test results show:

a. The presence of more than one of the NSAIDs listed in subsection (F)(1) unless the second NSAID is Phenylbu-tazone in a concentration of less than .5 micrograms per milliliter of serum or plasma or Flunixin in a concentration of less than 5 nanograms per milliliter of serum or plasma; or

b. A NSAID not listed in subsection (F)(1).

G.Furosemide.

1. Unless the state veterinarian instructs otherwise, a licensee shall administer furosemide intravenously to an entered horse only after the state veterinarian places the horse on the Furosemide List.

2. The following procedure applies to place a horse on or take a horse off the Furosemide List:

a. If the horse's trainer and veterinarian determine that it is in the horse's best interest to race with furosemide, the trainer and veterinarian shall notify the state veterinarian or designee, using a form prescribed by the Department, and request that the horse be placed on the Furosemide List;

b. The horse's trainer and veterinarian shall ensure that the state veterinarian or designee receives the notice required under subsection (G)(2)(a) no later than the time for entering the horse in a race;

c. After a horse is placed on the Furosemide List, the horse shall remain on the list until the horse's trainer and veterinarian submit a written request for removal to the state veterinarian, using a form prescribed by the Department. The horse's trainer and veterinarian shall ensure that the required request for removal is submitted no later than the time for entering the horse in a race;

d. After a horse is removed from the Furosemide List, the state veterinarian shall not allow the horse to be placed on the Furosemide List for 60 days unless the state veterinarian determines that failure to put the horse on the Furo-semide List is detrimental to the welfare of the horse;

e. If a horse is removed from the Furosemide List a second time in 365 days, the state veterinarian shall not allow the horse to be placed on the Furosemide List for 90 days; and

f. The state veterinarian shall ensure that the provisions in subsections (G)(2)(d) and (e) are not applied to a horse that was mandated by the conditions of entry to race without furosemide in the horse's previous race. The horse may be placed on the Furosemide List, at the election of the horse's trainer or veterinarian, by following the procedures in subsections (G)(2)(a) and (b).

3. On request by the Department, a veterinarian who administers furosemide to a horse shall surrender the syringe used in the administration for testing.

4. A veterinarian shall administer furosemide to a horse only at a location under the Department's jurisdiction.

5. If a location under the Department's jurisdiction is used for administration of furosemide, the trainer or veterinarian of a horse to which furosemide is to be administered shall ensure that the following conditions are met:

a. The horse is on the Furosemide List;

b. The horse is brought to the detention barn at least four hours before post time of a race in which the horse is entered;

c. The furosemide is administered no fewer than four hours before post time of a race in which the horse is entered;

d. The dose of furosemide administered is between 150 mg. and 500 mg.;

e. The dose of furosemide is administered by a single, intravenous injection; and

f. After the furosemide is administered, the horse remains in the detention barn in the care, custody, and control of the horse's trainer and under Department supervision until called to the saddling paddock.

6. After furosemide is administered, the trainer or veterinarian of the treated horse shall deliver the following information to the state veterinarian, at least three hours before post time for a race in which the horse is entered, under oath and on a form prescribed by the Department:

a. Name of the horse to which furosemide was administered,

b. Name of the track at which the horse is entered to race,

c. Date and time the furosemide was administered,

d. Dosage of furosemide administered,

e. Side of the horse in which the furosemide was administered, and

f. Printed name and signature of the veterinarian who administered the furosemide.

7. The state veterinarian shall ensure that a post-race urine, serum, or plasma sample from a horse is tested to determine the concentration of furosemide in the horse. If a horse was scheduled to race with furosemide, the post-race testing shall show:

a. A specific gravity of urine of 1.010 or greater, or

b. A concentration of no more than 100 nanograms of furosemide per milliliter of serum or plasma.

H. Bleeder list.

1. The state veterinarian or designee shall maintain a Bleeder List of all horses, regardless of age, for which the state veterinarian or designee observes external evidence of exercise-induced pulmonary hemorrhage from one or both nostrils during or after a race or workout.

2. A horse placed on the Bleeder List shall be ineligible to race for the following periods:

a. First incident - 10 days;

b. Second incident within a 365-day period - 60 days;

c. Third incident within a 365-day period - 180 days; and

d. Fourth incident within a 365-day period - lifetime bar from racing.

3. For the purpose of counting the number of days a horse is ineligible to run, the day the veterinarian witnessed the horse bleed externally is the first day of the required recovery period.

4. The state veterinarian or designee shall not place a horse on the Bleeder List if furosemide is voluntarily administered to the horse under subsection (G) without an external bleeding incident.

5. The Department shall authorize only the state veterinarian to remove a horse from the Bleeder List. To remove a horse from the Bleeder List, the state veterinarian shall certify the recommendation for removal in writing to the stewards.

6. The state veterinarian or designee shall place a horse on the Bleeder List if the horse has been placed on a Bleeder List in another jurisdiction.

I.Anti-ulcer medications. A veterinarian who determines it is necessary to administer an anti-ulcer medication to a horse shall administer one of the following anti-ulcer medications, at the stated dosage, no less than 24 hours before post time for a race in which the horse is entered:

1. Cimetidine (Tagamet ^®) - 8 to 20 mg/kg PO BID-TID;

2. Omeprazole (Gastrogard^®) - 2.2 Grams PO SID; or

3. Ranitidine (Zantac^®) - 8 mg/kg PO BID.

J.Environmental contaminants and substances of human use.

1. The Department shall take disciplinary action against a trainer responsible for a horse that has more than 100 nano-grams of caffeine in a milliliter of serum or plasma at the time of a pre- or post-race test.

2. If a preponderance of the evidence presented during a hearing shows that a positive test conducted on a horse results from environmental contamination or inadvertent exposure to human use of a medication, drug, or other substance, the Department shall consider the evidence as a mitigating factor in determining the disciplinary action to take against the affected trainer.

K.Androgenic-anabolic steroids (AAS).

1. The Department shall take disciplinary action against a trainer responsible for a horse if a urine test conducted on the horse shows:

a. The presence of an AAS other than those listed in subsection (K)(2), or

b. A concentration of an AAS listed in subsection (K)(2) greater than the threshold concentration listed in subsection (K)(2).

2. The Department shall permit the presence of the following AAS at a concentration at or less than the indicated threshold in the urine of a horse:

a. 16 [BETA]-hydroxystanozolol (metabolite of stanozolol (Winstrol) in all horses regardless of sex - 1 ng/ml in urine or 100 pg/ml in serum or plasma;

b. Boldenone (Equipoise® is the undecylenate ester of boldenone) in:

i. Male horses other than geldings - 15 ng/ml in urine or 100 pg/ml in serum or plasma; and

ii. Geldings and female horses - 100 pg/ml in serum or plasma;

c. Nandrolone (Durabolin® is the phenylproprionate ester and Deca-Durabolin^® is the decanoate ester) in:

i. Geldings, fillies, and mares - 1 ng/ml in urine or 100 pg/ml in serum or plasma; and

ii. Intact males -- 500 pg/ml in serum or plasma; and

d. Testosterone in:

i. Geldings - 20 ng/ml in urine;

ii. Fillies and mares - 55 ng/ml in urine or 100 pg/ml in serum or plasma; and

iii. Intact males - 2,000 pg/ml in serum or plasma.

The state veterinarian shall ensure that a urine sample is identified with the sex of the horse from which the urine sample was obtained before the urine sample is forwarded to the official laboratory for testing.

4. The state veterinarian shall place a horse to which an AAS has been administered to assist in recovery from illness or injury on the Veterinarian's List to allow concentration of the AAS or metabolite in the horse's urine to be monitored. The state veterinarian may remove the horse from the Veterinarian's List when the concentration of the AAS or metabolite in urine is less than the threshold indicated in subsection (K)(2).

L.TCO₂ testing and procedures

1. A steward or Department veterinarian may order that a blood sample be collected from a horse before or after a race to determine the TCO₂ concentration in the serum or plasma of the horse. If it is determined that testing for TCO₂concentration is necessary, the state veterinarian shall ensure that the following procedure is used:

a. The state veterinarian shall ensure that at least two tubes of blood are obtained from the horse for TCO₂ testing;

b. If the owner or trainer of a horse to be tested for TCO₂ concentration wishes to have split sample testing performed, the owner or trainer shall request the split sample testing before the sample is collected;

c. The owner or trainer of a horse to be tested for TCO₂ concentration who requests split sample testing shall pay all costs related to obtaining, handling, shipping and analyzing the split;

d. If the official laboratory determines that the concentration of TCO₂ in the blood of a horse exceeds 37 millimoles per liter, the official laboratory shall inform the Department immediately of the positive finding; and

e. If the Department, in its discretion, determines the split sample cannot be tested within five days after the sample is collected, the determination of TCO₂ concentration made by the official laboratory is final.

2. The stewards shall declare a horse ineligible to race if the owner, trainer, or other person responsible for the horse refuses or fails to permit a blood sample to be collected from the horse.

3. If the result obtained by the official laboratory shows that a horse has a concentration of TCO₂ greater than 37 milli-moles per liter and the owner or trainer of the horse certifies in writing to the stewards within 24 hours after receiving notice of the test result that the concentration is normal for the horse, the owner or trainer may request that the horse be held in quarantine. If quarantine is requested, the permittee shall make guarded quarantine available for the horse for a period up to 72 hours as determined by the stewards.

a. The owner or trainer of the horse shall pay all expenses associated with maintaining the quarantine;

b. During quarantine, the state veterinarian shall ensure that the horse's TCO₂ concentration is re-tested;

c. The stewards shall not allow the horse to race during the quarantine period but may allow the horse to be exercised and trained at times and in a manner that allows monitoring of the horse by the Department;

d. The stewards shall ensure that the horse is fed only hay, oats, and water during the quarantine period; and

e. If the state veterinarian is satisfied that the horse's TCO₂ concentration, as registered in the original test, is physiologically normal for the horse, the stewards shall:

i. Permit the horse to race; or

ii. Require that the quarantine procedure in this subsection be repeated to verify that the horse's TCO₂ concentration is physiologically normal.

M.Blood- and gene-doping agents.

1. The Department may subject a horse at a location under the Department's jurisdiction or under the care or control of a licensee to testing for blood- and gene-doping agents.

2. The state veterinarian is authorized to:

a. Take a urine, blood, or hair sample from a horse to test for blood- and gene-doping agents;

b. Select a horse for testing at random or with probable cause; and

c. Conduct the sampling at any time without advance notice.

3. The Department shall take disciplinary action against a licensee responsible for a horse if the results of a test conducted on a sample obtained under subsection (M)(2) shows the presence of:

a. Blood-doping agents including, but not limited to, Erthropoietin (EPO), Darbepoetin, Oxyglobin, Hemopure, Aransep, or any substance that abnormally enhances oxygenation of body tissues; or

b. Gene-doping agents or the non-therapeutic use of genes, genetic elements, or cells that have the capacity to enhance athletic performance or produce analgesia.

4. Subsection (M)(3) does not apply to a therapeutic medication that has been approved by the U.S. Food and Drug Administration for use in a horse.

5. A licensee at a location under the Department's jurisdiction shall cooperate with a veterinarian acting under subsection (M)(2) by:

a. Assisting to locate and identify a horse selected for testing,

b. Providing a stall or other safe location at which samples can be collected, and

c. Assisting the veterinarian to procure a sample properly.

6. A veterinarian who obtains a sample under subsection (M)(2) shall split the sample as described in subsection (N).

N.Testing.

1. Reporting to the test barn.

a. The trainer of an official winning horse, or a designee of the trainer, shall take the horse to the test barn immediately after the race to have blood and urine samples taken.

b. The Department or stewards shall order random or extra testing of any horse at a location under the Department's jurisdiction if the Department or stewards determine that the testing is in the best interest of racing. The trainer of a horse ordered to testing, or a designee of the trainer, shall take the horse directly, or at a time designated by the stewards or state veterinarian, to the test barn to have blood and urine samples taken.

c. A track security guard shall monitor access to the test-barn area during and immediately after each race. A person who wishes to enter the test-barn area shall:

i. Be at least 18 years old,

ii. Be currently licensed by the Department,

iii. Display an identification badge issued by the Department, and

iv. Have a reason to be in the test-barn area that the track security guard determines is legitimate.

2. Sample collection.

a. The state veterinarian or designee shall take blood and urine samples from a horse.

b. The state veterinarian shall ensure that blood samples are taken at a consistent time, preferably within one hour after a race.

c. The state veterinarian shall determine the minimum sample required for testing by the official laboratory:

i. If the sample obtained is less than the minimum required, the state veterinarian shall send the entire sample to the official laboratory;

ii. If the sample obtained is more than the minimum required but less than twice the minimum required, the state veterinarian shall secure the portion of the sample that is greater than the minimum required as a split sample; and

iii. If the sample obtained is more than twice the minimum required, the state veterinarian shall secure a portion of the sample equal to the minimum required as a split sample.

3. Storage and shipment of split samples.

a. The state veterinarian shall secure a split sample obtained under subsection (N)(2)(c) and make the split sample available for testing.

b. To secure a split sample, the state veterinarian shall:

i. Maintain the split sample in the test barn in the same manner as the portion of the sample from which it is split;

ii. Transfer the split sample to a freezer at a secure location approved by the Department when the portion of the sample from which it is split is packaged and shipped to the official laboratory;

iii. Ensure that the split-sample freezer is closed and locked except when depositing or removing a split sample, conducting inventory of split samples, or checking the condition of split samples;

iv. Maintain a log that specifies the following information for each time the split-sample freezer is opened: name of each person present; purpose of opening the freezer; identification of the split sample deposited or removed; date and time the freezer is opened; time the freezer is closed; and verification that both locks were secure before and after opening the freezer; and

v. Document in the log and report immediately to the Department any evidence that the split-sample freezer malfunctioned or split samples are not frozen.

c. If the official laboratory determines that a sample submitted under this subsection tests positive for a foreign substance, the trainer or owner of the horse from which the sample was obtained may, within 72 hours, deliver a written request to the stewards that the sample split from the sample for which the positive result was obtained be sent for testing by a Department-approved laboratory selected by the trainer or owner. The trainer or owner who requests that a split sample be tested shall:

i. Witness the split sample being removed from the split-sample freezer, packed for shipping, and transferred to the carrier charged with delivery of the package;

ii. Be allowed to inspect the package containing the split sample to verify that the package has not been tampered with before transfer to the carrier charged with delivery of the package and is correctly addressed to the Department-approved laboratory selected by the trainer or owner;

iii. Sign a form provided by the Department verifying that the rights described under subsections (N)(3)(c)(i) and (ii) have been provided; and

iv. Pay for shipping and testing the split sample.

d. A trainer or owner who fails to appear at the time and place designated by the state veterinarian to witness a split sample being removed from the split-sample freezer, packed for shipping, and transferred to a delivery carrier waives the right to split-sample testing.

e. The state veterinarian shall ensure that a split sample is packed and shipped for testing to a Department-approved laboratory within 72 hours after a written request for split-sample testing is delivered to the stewards under subsection (N)(3)(c).

f. When preparing a split sample for shipment, the state veterinarian shall ensure that:

i. The split sample is removed from the split-sample freezer and packed for shipping in the presence of the trainer or owner of the horse from which the sample was obtained;

ii. The split sample is packed for shipping in a safe and secure manner;

iii. The exterior of the package containing the split sample is secured in a manner designed to prevent tampering; and

iv. The package containing the split sample is transported to the location where custody is transferred to the carrier charged with delivering the package to the Department-approved laboratory selected by the trainer or owner.

g. During the process of retrieving, packing, and shipping a split sample, the state veterinarian shall prepare a chain-of-custody verification form containing the following information:

i. Date and time the split sample is removed from the split-sample freezer,

ii. Number of the split sample,

iii. Address of the Department-approved laboratory selected by the trainer or owner of the horse from which the split sample was obtained,

iv. Name of the carrier charged with delivering the package,

v. Address at which custody of the package is transferred to the carrier charged with delivering the package, and

vi. Date and time that custody of the package is transferred from the Department to the carrier charged with delivering the package.

h. The state veterinarian shall ensure that both the state veterinarian and the trainer or owner of the horse from which the split sample was obtained sign the chain-of-custody verification form indicating that:

i. The correct split sample was removed from the split-sample freezer,

ii. The split sample was packed in accordance with subsection (N)(3)(f)(ii),

iii. The package containing the split sample was correctly addressed to the Department-approved laboratory selected by the trainer or owner, and

iv. There is no evidence of tampering on the package containing the split sample.

i. The state veterinarian shall keep the original of the chain-of-custody verification form and provide a copy to the trainer or owner of the horse from which the split sample was obtained.

4. Frozen samples. As specified in the Department's contract with the official laboratory, the Department has authority to require the official laboratory to retain and preserve by freezing the left-over portion of a sample submitted for testing.

5. Laboratory minimum standards. The official laboratory and any Department-approved laboratory that conducts primary or split-sample testing shall meet the following minimum standards:

a. General adherence to the requirements for competence of testing and calibration specified by the International Organization for Standardization;

b. Have or have access to liquid chromatograph and mass spectrometer instruments for screening and confirmation purposes; and

c. Be able to detect medications, drugs, and other substances at the specific concentration or regulatory threshold established.

O.Trainer responsibilities.

1. The trainer of a horse at a location under the Department's jurisdiction shall:

a. Ensure that if the horse entered in an official workout, the horse is in physical condition for the workout;

b. Ensure that if the horse is entered in a race, the horse is in physical condition to perform creditably at the distance entered;

c. Prevent administration to the horse of a prohibited medication, drug, or other foreign substance;

d. Prevent administration to the horse of a permitted medication, drug, or other foreign substance in excess of the maximum allowable concentration;

e. Maintain knowledge of the medications, drugs, or other substances administered to the horse;

f. Report immediately to the stewards and state veterinarian knowledge of or reason to believe a prohibited medication, drug, or other foreign substance has been administered or a permitted medication, drug, or other foreign substance has been administered in excess of the maximum allowable concentration;

g. Maintain an assigned stable area in a clean, neat, and sanitary condition at all times;

h. Use the services of only a veterinarian licensed by the Department while at a location under the Department's jurisdiction;

i. Ensure the proper identity, custody, care, health, and safety of the horse;

j. Ensure that the horse has a valid health certificate and a negative Equine Infectious Anemia test certificate on file with the racing secretary;

k. Report no later than the time of entry to the horse identifier and racing secretary if the horse is gelded;

l. Report immediately to the state veterinarian when the horse has a reportable disease or unusual incidence of a communicable illness;

m. Report immediately to the stewards and state veterinarian when the horse has a serious injury or dies;

n. Comply with the provisions in subsection (R) governing postmortem examination;

o. Ensure that an entered horse is present at the horse's assigned stall for the pre-race inspection prescribed under subsection (P);

p. Ensure that the horse has proper bandages, equipment, and shoes;

q. Be present in the paddock at least 17 minutes before post time of a race for which the horse is entered or another time designated by the stewards;

r. Supervise saddling the horse in the paddock unless excused by the stewards;

s. Attend, or ensure that the owner or a licensed employee of the owner attend, collection of a blood or urine sample from the horse; and

t. Report no later than the time of entry to the state veterinarian and racing secretary that a mare is in foal.

2. If the official laboratory reports that a horse tests positive for a prohibited medication, drug, or other foreign substance or for a permitted medication, drug, or other substance in excess of the maximum allowable concentration, the Department shall view the positive test as prima facie evidence that the trainer of the horse violated subsection (O)(1).

3. A trainer whose horse has been claimed shall comply with all provisions of subsection (O)(1) until after the race in which the horse was claimed.

P.Physical inspection of horses.

1. A horse entered in a race at a location under the Department's jurisdiction is subject to inspection by a veterinarian before the race.

2. A pre-race inspection of an entered horse shall be conducted by the track veterinarian.

3. The trainer of an entered horse or a representative of the trainer shall present the horse for pre-race inspection as required by the track veterinarian. The trainer shall ensure that when the horse is presented for pre-race inspection:

a. All bandages are removed,

b. The horses' legs are clean,

c. The horse has not been placed in ice before the inspection, and

d. No device or substance that might impede veterinary clinical assessment is applied to the horse.

4. The track veterinarian shall ensure that a pre-race inspection of an entered horse includes the following:

a. Proper identification of the horse inspected;

b. Observation of the horse in motion;

c. Manual palpation and passive flexion of both forelimbs;

d. Visual inspection of the entire horse and assessment of overall condition;

e. Observation of the horse in the paddock and saddling area, during the parade to post, and at the starting gate; and

f. Any other inspection the state veterinarian deems necessary.

5. The track veterinarian shall maintain and regularly update a health and racing soundness record of each horse inspected.

6. The trainer or owner of a horse at a location under the Department's jurisdiction shall allow the state or track veterinarian to have access to the horse regardless of whether the horse is entered in a race.

If the state or track veterinarian determines that a horse is unfit for competition or is unable to determine the horse's racing soundness, the state veterinarian shall recommend to the stewards that the horse be scratched from a race in which the horse is entered.

8. If a horse is scratched from a race based on the recommendation of the state or track veterinarian, the veterinarian shall ensure that the horse is placed on the Veterinarian's List described in subsection (Q).

Q.Veterinarian's List.

1. The track veterinarian shall maintain the Veterinarian's List of all horses determined to be unfit to compete in a race due to illness, physical distress, unsoundness, infirmity, or other medical condition.

2. The trainer of a horse on the Veterinarian's List shall not enter the horse in a race unless approved the track and Department veterinarians.

3. The trainer of a horse on the Veterinarian's List shall not enter the horse in a race until the horse has been on the Veterinarian's List at least 72 hours.

4. The track veterinarian shall ensure that a horse is removed from the Veterinarian's List only when the track veterinarian determines the condition that caused the horse to be placed on the Veterinarian's List is resolved and the horse has been returned to racing soundness.

5. The trainer or owner of a horse on the Veterinarian's List shall comply with all provisions of this Chapter including testing.

R.Postmortem Examination.

1. The trainer or owner of a horse that dies or is euthanized at a location under the Department's jurisdiction shall submit the horse for a postmortem examination if requested by the Department.

2. If required under subsection (R)(1) to submit a horse to the Department for postmortem examination, the trainer or owner of the horse shall ensure that all shoes and equipment are left on the horse's legs.

3. If an analysis of blood, urine, bodily fluids, or other biologic specimens collected during a postmortem examination shows the presence of a prohibited medication, drug, or other substance or a permitted medication, drug, or other substance in excess of the maximum allowable concentration in the horse's body, the Department shall take disciplinary action allowed under A.R.S. Title 5, Chapter 1 and this Chapter against the trainer or owner of the horse.

4. In proceeding with a postmortem examination of a horse, the Department shall coordinate with the horse's owner to determine and address any insurance requirements.

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended by adding subsection (O) effective November 23, 1983 (Supp. 83-6). Amended by adding subsection (P) effective January 24, 1985 (Supp. 85-1). Amended by adding subsections (Q) and (R) effective September 24, 1986 (Supp. 86-5). Amended by adding subsections (S), (T), (U) and (V) effective February 19, 1987 (Supp. 87-1). Amended by adding subsections (W) and (X) effective October 14, 1988 (Supp. 88-4). Repealed effective March 20, 1990 (Supp. 90-1). R19-2-120 recodified from R4-27-120 (Supp. 95-1). New section made by final rulemaking at 19 A.A.R. 3412, effective November 30, 2013.

Ariz. Admin. Code § R19-2-121 Officials

A. Generally.

1. In this Article, the term track official means the following persons employed by the permittee and approved and licensed by the Department: Director of Racing, one steward, pari-mutuel manager, patrol judges, clerk of the scales, starter, timer, placing judge, paddock judge, track veterinarian, track superintendent, racing secretary, assistant racing secretary, handicapper, horsemen's bookkeeper, jockey room custodian, and chief of security.

2. The term Department official means the following persons appointed by the Department: two stewards, state pari-mutuel supervisor, state veterinarian, identifier, and investigator. Other track officials may be appointed by the Department for a county fair race meet.

3. A person may serve in more than one position as a track or Department official if the person can do so without detriment to any of the other positions and the person has the consent and approval of the Department except that neither the racing secretary nor the permittee director of racing may serve as a steward.

4. A ruling by the stewards is controlling if made by a majority of the stewards participating in making the ruling.

5. Vacancies.

a. When a vacancy occurs among officials other than stewards, the stewards shall fill the vacancy before post time of the first race of the day or immediately if the vacancy occurs after post time of the first race. An appointment made by the stewards is effective only for the day on which the appointment is made unless the permittee fails to fill the vacancy on the following day and notifies the stewards of its action not less than one hour before post time of the first race of the following day. A permittee shall promptly report the appointment of an official to the Department.

b. As required under subsection (E)(1), three stewards shall view the running of a race. If a vacancy occurs among the stewards, the stewards present shall appoint one or two persons to serve as temporary stewards. The stewards making an appointment under this subsection shall report the appointment in writing to the Department.

c. In case of emergency, the stewards may appoint a substitute official to fill a vacancy for only as long as the emergency exists.

6. The Department shall not license or appoint minors as officials.

7. A person with a financial interest in the result of a race, such as an ownership interest in any entered horse or a wager shall not act as an official at the race meet in which the race occurs.

B.Prohibited acts.

1. An official or an official's assistant shall not purchase pari-mutuel tickets on races.

2. An official or an official's assistant shall not consume alcoholic beverages while on duty.

3. An official shall not accept, directly or indirectly, a bribe, gift, or other form of gratuity that is intended to or might influence the results of a race or the conduct of a race meet.

4. An official or employee of a permittee shall not write or solicit horse insurance at a race meet.

5. An official or employee of a permittee at a race meet shall not buy or sell a contract upon a jockey or apprentice jockey for another official or employee of a permittee or for another individual, either directly or indirectly.

C. An official or employee or a permittee shall report all observed violations of this Chapter to the stewards.

D.Complaints.

1. A person with a grievance or complaint against a track official, an employee of the permittee, or a licensee shall submit the grievance or complaint in writing to the stewards within five days of the alleged act or omission giving rise to the grievance or complaint. The stewards shall consider the matter, take appropriate action, and make a full written report of the stewards' action to the Department.

2. A person with a grievance or complaint against an official or employee of the Department shall report the grievance or complaint in writing to the Director or designee within five days of the alleged act or omission giving rise to the grievance or complaint.

3. The Department shall take disciplinary action allowed under A.R.S. Title 5, Chapter 1 against an official or employee of the Department who fails to comply with this Chapter.

E.Stewards.

1. Two stewards appointed by the Director, and one steward appointed by the permittee and licensed by the Department, shall supervise each race meet.

a. The stewards shall be in attendance at the office of the racing secretary or on the grounds of the permittee on any day in which entries are being taken or racing is being conducted and represent the Department in all matters pertaining to the enforcement and interpretation of this Chapter.

b. The stewards shall advise the Director of all hearings and rulings made.

c. If a steward is unable to perform the steward's duties for more than one day, the steward shall immediately notify the Director so an alternate steward may be named to act in the steward's place.

2. The stewards shall enforce A.R.S. Title 5, Chapter 1 and this Chapter.

3. The stewards shall interpret A.R.S. Title 5, Chapter 1 and this Chapter and decide all questions not specifically covered by the A.R.S. Title 5, Chapter 1 and this Chapter. In all interpretations and decisions, an order of the stewards supersede an order of the permittee.

a. The stewards shall have control over and free access to all stands, weighing rooms, enclosures, and all other places within the grounds of the permittee.

b. The stewards shall investigate and render a decision promptly on each objection properly made to them under R19-2-117 . Even if all stewards agree on a ruling, only a majority need to sign the ruling.

c. The stewards shall supervise all entries and declarations. The stewards may refuse entries or the transfer of entries for violation of A.R.S. Title 5, Chapter 1 or this Chapter .

d. The stewards shall regulate and control the conduct of officials and other persons attending or participating in a race meet.

e. When necessary to maintain safety and health conditions and protect public confidence in the sport of racing, the stewards shall :

i. Authorize a person to enter in or on and examine the buildings, stables, rooms, motor vehicles, trailers, or other places within the grounds of a permittee;

ii. Inspect and examine the person, personal property, and effects of any person within the grounds or a permittee; and

iii. Seize any items prohibited under R19-2-112(7) or (8) or any other illegal article.

f. Under subsection (E)(6), the stewards may impose a civil penalty in an amount not to exceed $2,500 on any person subject to the stewards' control for violation of A.R.S. Title 5, Chapter 1 or this Chapter. After a hearing, the stewards may suspend a person violating A.R.S. Title 5, Chapter 1 or this Chapter for up to six months and may rule off a licensee violating A.R.S. Title 5, Chapter 1 or this Chapter. The stewards may impose both a civil penalty and suspension for the same violation. The stewards may refer any ruling made by the stewards to the Director, recommending further action, including license revocation.

g. If a laboratory report or other evidence shows the administration or presence of a foreign substance, the stewards shall immediately investigate the matter and may disqualify the horse, suspend the trainer or other person involved, refer the matter to the Director, and impose a fine.

h. Every person or entry expelled or ruled off by any recognized turf authority for fraudulent or improper practice or conduct is ruled off all permittee locations in the state.

i. Unless specifically ordered otherwise, if the stewards suspend one license held by an individual, all licenses held by the individual are suspended for the term of the suspension.

i. j. When a person is suspended, the stewards shall rule off every horse wholly or partly owned by the person for as long as the person's suspension continues. The suspended person shall not, whether acting as agent or otherwise, subscribe for, enter, or run a horse in any race, in either the person's name or that of another person. The stewards shall disqualify a horse if the horse is wholly or partly owned by the suspended person or under the suspended person's care, management, training, or supervision, or the suspended person has an interest in the horse's winnings. At the time it is discovered, the stewards shall void an entry from a suspended person or of a horse that stands ruled off . The suspended person shall forfeit the entry or subscription money and return the money or prize won.

4. The stewards may excuse a horse that has left the paddock for the post if the stewards consider the horse to be disabled or unfit to run. In claiming races, if there is a claim entered on an excused horse, the claim is invalid.

5. The stewards shall determine the finish of a race by the relative position of the noses of each horse. At the end of a race, the stewards shall immediately notify the pari-mutuel department of the numbers of the first four horses.

a. The stewards shall promptly display the numbers of the first four horses in each race in the order that they finished. If the stewards differ as to the order in which the horses finished, the conclusion of the majority of the stewards shall prevail.

b. The stewards may review a photo-finish picture provided by the permittee to aid the stewards in determining the finish of a race.

i. If the photo-finish picture furnished by the permittee is not adequate or usable, the stewards shall make the final decision.

ii. If the stewards consider it advisable to review the photo-finish picture, the stewards may post the placements that the stewards determine are unquestionable without waiting for a picture. After reviewing the picture, the stewards shall make the other placements. The stewards shall not declare the race official until the stewards have determined which horses finished first, second, third, and fourth.

c. The stewards shall correct an error before the display of the official sign or recall the official sign if it is displayed through error.

6. The stewards shall adhere to the following procedure when the stewards have reason to believe that a person has violated A.R.S. Title 5, Chapter 1 or this Chapter :

a. The stewards shall summon the person to a hearing with all the stewards present;

b. The stewards shall give 24-hours' written notice of the hearing to the person, using a form supplied by the Department. The stewards shall time and date the notice, and the person notified shall sign the notice and return the notice to the stewards. The stewards shall retain the original notice and include the notice as part of the case file. The stewards shall give a copy of the notice to the person summoned;

c. Except as provided in subsection (E)(6)(g), the stewards shall not impose a penalty without a hearing;

d. If a summoned person fails to appear at a scheduled hearing, the person waives the right to a hearing before the stewards;

e. The stewards shall permit the summoned person to present witnesses on the person's behalf;

f. The stewards shall take appropriate action, including suspension, civil penalty, or both, if there is substantial evidence to find a violation of A.R.S.Title 5, Chapter 1 or this Chapter. The stewards shall promptly forward the written decision or ruling to the Director and to the summoned person;

g. The stewards may summarily declare a horse scratched and may suspend a license pending a stewards' hearing if the stewards make a specific finding that the action is in the best interest of the public health, safety, and welfare;

h. The stewards shall recover and forward to the Department any license the stewards suspend;

i. The stewards shall act by majority vote on all matters within the stewards' jurisdiction;

j. The stewards have the power to modify, change, or remit any ruling imposed by the stewards; and

k. A licensee shall promptly pay to the Department any civil penalty imposed by the stewards for deposit with the state treasurer.

7. During a term of suspension of an owner, trainer, or other person at a location under the jurisdiction of the Department, the stewards and permittee shall ensure that a ruling against the owner, trainer, or other person is enforced.

F.Racing secretary.

1. The racing secretary shall report to the stewards all violations of A.R.S. Title 5, Chapter 1 and this Chapter or of the regulations of the permittee that come to the racing secretary's attention.

b. 2. The racing secretary shall keep a complete record of all races.

2. 3. The racing secretary or authorized representative shall inspect all documents dealing with owners and trainers, partnership agreements, appointments of authorized agents, and adoption of stable names. The racing secretary may demand production of the documents to verify their validity and authenticity and to ensure that A.R.S. Title 5, Chapter 1 and this Chapter has been followed.

3. 4. The racing secretary shall write the conditions of all races and publish the conditions sufficiently before closing time for entries to allow the conditions to be read by all owners and trainers. The racing secretary shall not alter the conditions of the races after closing time.

a. The racing secretary shall not write race conditions that conflict with A.R.S. Title 5, Chapter 1 or this Chapter.

b. The racing secretary shall include in the race conditions or post a list of eligible horses before the time of entry for every graded quarter-horse race. The racing secretary shall not add a horse to this list after entering has begun without the consent of those who have entered eligible horses.

4. 5. The racing secretary shall act as the official handicapper in all races.

a. The racing secretary shall assign weight to all horses entered in a handicap race.

b. The racing secretary shall post the weights assigned in a handicap race before 10:30 a.m. on the day set for publication.

5. 6. The racing secretary shall determine the character and condition of substitute and extra races and submit the substitute and extra races to the stewards for approval.

a. If a stakes or overnight handicap race does not fill, the unfilled race may be replaced by another overnight race carrying a guaranteed purse consistent with the daily average purse.

b. If a race is canceled, the racing secretary may split any race programmed for the same day that previously was closed.

c. The racing secretary shall give preference to races printed in the condition book over substitute and extra races.

6. 7. The racing secretary or designee shall conduct the drawing of horses in all races and immediately post an overnight listing of the horses in each race.

7. 8. The office of the racing secretary shall keep the preferred list of all horses.

8. 9. The racing secretary shall not allow a horse to start in a race unless the horse is entered in the name of the legal owner and the owner's name appears on the back of the horse's registration papers or on a legal lease or bill of sale attached to the horse's registration papers.

G.Assistant racing secretary. The assistant racing secretary shall, under the racing secretary's supervision, assist the racing secretary to perform the racing secretary's duties.

H.Starter.

1. The starter has:

a. Complete jurisdiction over the starting of any field of horses,

b. Authority to give orders necessary to ensure a fair start, and

c. Authority to recommend to the stewards that a person be fined or suspended for violating the starter's orders.

2. The starter may place a horse on a schooling list. The racing secretary shall not accept an entry on a horse until the horse is removed from the schooling list by the starter.

3. The starter may recommend to the stewards that a horse be ruled off if the horse is unmanageable at the starting gate or refuses to break properly, after a reasonable schooling period.

I.Starter's assistant.

1. The starter's assistant may help horses into the starting gate.

2. The starter's assistant may handle or otherwise restrain unruly or fractious horses before the start.

J.Clerk of the scales.

1. The clerk of the scales shall:

a. Weigh all jockeys out and in;

b. Post promptly the names of jockeys who are overweight at weigh out ;

c. Notify a trainer that the trainer's jockey is overweight;

d. Report all late scratches, changes in riders, overweight jockeys, and corrected weights for posting on a bulletin board located in a place conspicuous to the wagering public; and

e. Record winning records of apprentice jockeys and attest to the date and track on the jockey's apprentice certificate.

2. A jockey shall not pass the scale more than seven pounds overweight without consent of the stewards.

3. A jockey shall not be more than one pound short at weigh in.

4. The clerk of the scales shall report to the stewards any violation of weight requirements or any attempt to alter specified weights.

K.Paddock judge.

1. The paddock judge shall:

a. 1. Check all contestants for each race,

b. 2. Keep a record of all equipment carried by all horses in each race under the paddock judge's jurisdiction,

c. 3. Not allow a change of equipment unless the change is approved by the stewards;

2. 4. Ensure that only the owner or trainer of a horse or an employee of the owner or trainer touch a horse in the paddock without permission of the paddock judge; and

3. 5. Report any irregularities to the stewards.

L.Patrol judge.

1. The patrol judge shall:

a. View the portion of the track allotted to the patrol judge, and

b. Report to the stewards any irregular incident occurring during a race.

2. The stewards may require a patrol judge to submit a written report on each race.

3. The number of patrol judges in use at a track may vary with the size of the track and need to ensure clean racing.

M.Timers. Timers shall:

1. Accurately record the time of each race,

2. Accurately record the fractional times of each race if required, and

3. Use an electrical timing device approved by the Department in all races restricted to quarter horses.

N.Jockey room custodian.

1.The jockey room custodian shall:

a. 1. Maintain the jockey room in proper order as a restricted area;

b. 2. Ensure that jockeys conduct themselves in accordance with A.R.S. Title 5, Chapter 1 and this Chapter;

c. 3. Ensure that jockeys are on time for races;

d. 4. Supervise the valets employed to assist the jockeys;

e. 5. Assist the clerk of scales to ensure jockeys have proper equipment and carry the correct weight; and

2. 6. Report immediately to the stewards any horse's colors not in the jockey room custodian's possession for the day's racing.

O.Horsemen's bookkeeper.

1. The horsemen's bookkeeper shall receive all stakes, forfeits, entrance monies, fees (including jockey fees), and purchase money in claiming races.

2. The horsemen's bookkeeper shall pay all money on deposit to the persons entitled to it within 14 days after the close of a race meet.

3. The horsemen's bookkeeper shall be bonded in an amount determined by the Director.

4. The horsemen's bookkeeper shall segregate and hold as trust funds all fees paid in added money events, early closing events, stakes, and futurities until the event is contested. The horsemen's bookkeeper shall submit proof of segregation by bank letter or bank statement to the Department through the bank's authorized representative.

5. The horsemen's bookkeeper shall not pay purse money earned by a horse to anyone except the horse's registered owner or the owner's authorized agent. The Department shall authorize the release of purse monies only after the results of laboratory analysis are obtained.

6. If the stewards notify the horsemen's bookkeeper that there is an objection or a post-race sample tests positive for a foreign substance, the horsemen's bookkeeper shall hold the purse monies until the Department authorizes release of the purse monies.

P.Veterinarians.

1. The Department shall approve two official veterinarians who are licensed to practice veterinary medicine by the state of Arizona. Each permittee shall employ one of the official veterinarians, who is called the track veterinarian. The Department shall employ the other official veterinarian, who is called the state veterinarian.

2. The state veterinarian shall be in charge of all sample collection.

3. An official veterinarian shall inspect each horse in the receiving barn or paddock and shall recommend to the stewards that a horse be scratched if the veterinarian finds the horse is unsafe to race or physically unfit to produce a satisfactory result in a race.

The track veterinarian shall examine all horses before to a race.

5. Either the state veterinarian or track veterinarian shall place a horse deemed to be unsafe, unsound, or unfit on a suspension list approved by the stewards.

6. The racing secretary may accept the entry of a horse on the veterinarian's list only after approval by the track and Department veterinarian and if three calendar days have elapsed since the horse was placed on the veterinarian's list.

7. 6. A veterinarian licensed by the Department shall keep a written record of the veterinarian's practice on the grounds of a permittee relating to horses participating in racing.

a. The veterinarian shall include the following in the record :

i. The name of the horse treated,

ii. The nature of the horse's ailment,

iii. The type of treatment prescribed and performed for the horse, and

iv. The date and time of the treatment;

b. The veterinarian shall keep the record for practice engaged in at all licensed tracks;

c. The veterinarian shall produce the record without delay on request of the stewards or the Department;

d. A veterinarian engaged in private practice at a location under the jurisdiction of the Department shall be licensed by the Arizona State Board of Veterinarian Medical Examiners and the Department;

e. A veterinarian who administers to or prescribes for horses on the premises of a permittee shall be licensed by the Department except, as specified in R19-2-120(A)(2)(g), in case of emergency ; and

f. When recommended by the state veterinarian, the Department shall evaluate new and experimental medications and drugs and determine whether the medications and drugs may be used on the grounds of a permittee.

7. If an official veterinarian determines that an injured horse should be destroyed, the official veterinarian shall destroy the horse quickly, humanely, and out of sight of the public unless any delay will prolong suffering by the horse.

Q.Horse identifier.

1. The horse identifier or designee shall examine all horses registered for racing at tracks under the jurisdiction of the Department.

2. The horse identifier shall ensure that all horses starting at any track in Arizona are tattooed unless otherwise authorized by the stewards.

3. The horse identifier may make photographs or permanent identification records for horses referred to in subsection (Q)(1) . The horse identifier shall include the tattoo number, markings, cowlicks, dimples, and other characteristics on the horse's identification record.

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended subsections (A) and (D) effective November 30, 1988 (Supp. 88-4). Amended effective March 20, 1990 (Supp. 90-1). R19-2-121 recodified from R4-27-121 (Supp. 95-1). Amended effective September 14, 1995 (Supp. 95-3). Amended effective January 12, 1996 (Supp. 96-1). Amended effective August 7, 1996 (Supp. 96-3). Spelling correction made in subsection (1) "permitee" changed to "permittee" to reflect rules on file with the Office of the Secretary of State (Supp. 98-3). Amended by final rulemaking at 11 A.A.R. 5534, effective February 4, 2006 (Supp. 05-4). Amended by final rulemaking at 19 A.A.R. 3412, effective November 30, 2013.

Ariz. Admin. Code § R19-2-122 Transfers

A. Any change in the ownership or lease of a horse registered with the racing secretary must be effected by a bill of sale or lease agreement.

1. A copy of the bill of sale or lease agreement shall be filed in the track office of the Department and with the racing secretary.

2. The stewards shall be advised of any change in the ownership or trainer transfer of a horse registered with the racing secretary.

3. A horse shall not be transferred to a new trainer after entry.

4. More than one owner may be indicated on the program by the use of the name of one owner and the phrase "et al."

B. If a horse is sold with all its engagements or any part of them, the seller shall not strike it from such engagements.

1. In all private sales, the written acknowledgment of both parties that the horse was sold with all, or part of, its engagements is necessary to entitle the seller or buyer to the benefit of this rule. If certain engagements are specified, only those engagements so specified shall be sold with the horse.

2. In all public auctions, the advertised conditions of the sale are sufficient evidence of sale with all engagements. If certain engagements are specified, only those engagements so specified shall be sold with the horse.

3. If a horse is transferred with its engagements, that horse shall not be eligible to start in any stakes race unless, at the time of the running of the stakes or prior thereto, the transfer of the horse and its engagements is exhibited upon demand to the racing secretary.

4. No transfer of a horse or an engagement shall be made for the purpose of avoiding disqualification.

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended effective March 20, 1990 (Supp. 90-1). R19-2-122 recodified from R4-27-122 (Supp. 95-1).

Ariz. Admin. Code § R19-2-123 Procedure before the Department

A. Appeal of stewards' rulings and referrals.

1. A person aggrieved by a ruling of the stewards may appeal to the Director. An appeal shall be filed in writing to the office of the Director within three days after receipt of the steward's ruling.

2. The failure of the stewards to convene a hearing within 10 days after an objection is made shall be deemed a denial by the stewards and may be appealed by filing a written appeal in the office of the Director within 10 days from the date the objection was denied.

3. 2. An appeal shall be signed by the person making the appeal or by the person's attorney and shall contain the grounds for appeal and the reasons for believing the person is entitled to a hearing.

4. A person filing an appeal of a ruling may be required by the Director or the Commission to furnish a bond in the amount equal to an assessed fine and an additional $200 to cover the costs, which may be forfeited should the appeal be denied.

5. 3. The stewards may refer any ruling to the Director, recommending further action, including revocation of a license suspended by the stewards. On receipt of a referral, the Director shall review the record and may affirm, reverse, or modify the stewards' ruling or conduct other proceedings the Director deems appropriate.

6. 4. If the Director decides that hearing or other proceeding is appropriate, the Director shall fix a time and place for a hearing. The Director shall give written notice of the hearing to the appellant at least 30 days before the date set for the hearing unless the 30 days' notice is waived in writing by the appellant.

7. Nothing contained in this Section shall affect the distribution of the pari-mutuel pools.

8. In case of an appeal or protest, the purse money affected shall be retained by the permittee subject to order of the Director.

B.Appeal of stewards' inquiry and objection rulings.

1. Failure of the stewards to convene a hearing within 10 days after an objection is made shall be deemed a denial that may be appealed by filing a written appeal to the office of the Director within 10 days after the date the objection is denied.

2. A person making an appeal or the person's attorney shall sign the appeal and ensure that it contains the grounds for appeal and reasons for believing the person is entitled to a hearing.

3. After an appeal is filed under subsection (B)(2), the Director shall fix a time and place for hearing or refer the matter to a hearing officer. The Director shall give written notice of the hearing to the appellant at least 30 days before the date set for the hearing unless the 30 days' notice is waived in writing by the appellant.

4. Nothing contained in this Section shall affect distribution of pari-mutuel pools.

5. The Department shall retain purse money affected by an appeal until an order regarding the appeal is issued by the Director.

B. C.License denial, suspension, or revocation.

1. The Director may deny a license without prior notice to a license applicant. However, if the applicant files an appeal with the Director within 30 days after receipt of the denial notice, the Director shall fix a time and place for a hearing on the matter and give written notice of the hearing to the applicant at least 30 days before the date set for the hearing, unless the 30 days' notice is waived in writing by the applicant.

2. The Director may revoke or, independently of the stewards, suspend a license only after notice and opportunity for hearing. The Director shall give written notice of the hearing at least 30 days before the date set for hearing unless the 30 days' notice is waived in writing by the licensee.

3. Unless specifically ordered otherwise, if the Director suspends one license held by an individual, all licenses held by the individual are suspended for the term of the suspension.

C. D. Director's hearings.

1. A party appearing before the Director or the Director's designee shall be afforded an opportunity to a hearing and to respond and present evidence and argument on all issues.

2. An individual appearing before the Director or the Director's designee has the right to appear in person or by counsel. A corporation appearing before the Director shall appear only through counsel. A party may submit the party's case in writing. If a party fails to appear for a hearing, the Director may act on the evidence without further notice to the party. The Director may reopen a proceeding if a party to the proceeding submits a written petition to the Director within XX days after the proceeding.

D. E.Hearing officer. If the Director assigns a matter to a hearing officer, the hearing officer shall submit to the Director within 15 days after conclusion of the hearing a written decision that includes proposed findings of fact, conclusions of law, and order. The Director may accept, reject, or modify the decision of the hearing officer . Unless modified, the decision of the hearing officer becomes the decision of the Director 45 days after the hearing officer submits the decision to the Director.

E. F.Depositions.

1. If a party desires to take the oral deposition of a witness residing outside the state or otherwise unavailable as a witness, the party shall file with the Director a petition for permission to take the deposition of the witness. The party shall specify in the deposition petition the name and address of the witness and the nature and substance of the testimony expected to be given by the witness. The Director shall grant permission to take the deposition if the Director is able to determine from the deposition petition that the witness resides outside the state or is otherwise unavailable and the witness's testimony is relevant and material.

2. The Director may, at the Director's discretion, designate the time and place at which the deposition may be taken. The party that takes a deposition is responsible for all expenses involved in taking the deposition.

3. A party taking a deposition under this subsection shall return and file the deposition with the Director within 30 days after permission for taking the deposition is granted.

F. G.Service.

1. The Department shall make service of a decision, order, or other process in person or by mail. The Department shall make service by mail by enclosing a copy of the material to be served in a sealed envelope and depositing the envelope in the United States mail, postage prepaid, addressed to the party served at the address shown by the records of the Department.

2. The Department shall calculate time periods prescribed or allowed by this Chapter, order of the Department, or applicable statute as provided in the Arizona Rules of Civil Procedure.

3. Service on an attorney who has appeared on behalf of a party constitutes service on the party. A person required to serve papers on the Director or Commission shall file the papers in the office of the Department and serve a copy on the Attorney General.

4. Proof of service may be made by the affidavit or oral testimony of the person making service.

G. H.Rehearing, review, or appeal.

1. Except as provided in subsection (H)(7), a party aggrieved by a final administrative decision rendered by the Director, may file with the Director within 30 days after service of the final administrative decision, a written motion for rehearing or review. A party filing a motion for rehearing or review of the decision shall specify in the motion the particular grounds on which the motion is made.

2. A motion for rehearing or review may be amended at any time before it is ruled on by the Director. A response may be filed within 10 days after service of the motion or amended motion by any other party. The Director may require the filing of written briefs on the issues raised in the motion and may provide for oral argument.

3. The Department may grant a rehearing or review of a decision for any of the following causes materially affecting a party's rights:

a. Irregularity in the administrative proceedings, or an order or abuse of discretion that deprived a party of a fair hearing;

b. Misconduct of the hearing officer, Director, or the prevailing party;

c. Accident or surprise that could not have been prevented by ordinary prudence;

d. Newly discovered material evidence that could not, with reasonable diligence, have been discovered and produced at the hearing;

e. Excessive or insufficient penalty;

f. Error in the admission or rejection of evidence or other errors of law occurring at the administrative hearing or during the progress of the proceedings; and

g. The findings of fact or decision is not justified by the evidence or is contrary to law.

4. The Director may affirm or modify a decision or grant a rehearing to all or any of the parties on all or part of the issues for any of the reasons listed in subsection (H)(3). The Director shall specify with particularity the grounds for an order modifying a decision or granting a rehearing. A rehearing shall cover only the matters specified.

5. Not later than 10 days after the date of a decision, after giving the parties notice and an opportunity to be heard, the Director may, on the Director's initiative, order a rehearing or review for any reason for which the Director might have granted a rehearing or review on motion of a party. After giving the parties or their counsel notice and an opportunity to be heard, the Director may grant a motion for rehearing or review for a reason not stated in the motion. In either case, the Director shall ensure that the order granting a rehearing or review specifies the grounds for the order.

6. When a motion for rehearing or review is based on affidavits, the party making the motion shall serve the affidavits with the motion. An opposing party may, within 15 days after service, serve opposing affidavits. This period may be extended by the Director for an additional 20 days for good cause shown or by written stipulation of the parties. Reply affidavits may be permitted.

7. If the Director makes a specific finding that a particular decision needs to be effective immediately to preserve the public peace, health, safety, and welfare and that a rehearing or review of the decision is impracticable, unnecessary, or contrary to the public interest, the Director shall issue the decision as a final decision without an opportunity for a rehearing or review.

8. For purposes of this subsection the terms "contested case" and "party" shall be defined as provided in A.R.S. & 41-1001.

9. 8. If the provisions of this Section are in conflict with the provisions of a statute providing for rehearing of decisions of the Director, the statutory provisions shall govern.

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended effective March 20, 1990 (Supp. 90-1). R19-2-123 recodified from R4-27-123 (Supp. 95-1). Amended by final rulemaking at 19 A.A.R. 3412, effective November 30, 2013.

Ariz. Admin. Code § R19-2-124 Procedure before the Commission

A.Appeal of Director's rulings.

1. A person aggrieved by a ruling of the Director may appeal to the Commission. An appeal shall be filed in writing to the office of the Commission within 30 days after service of the Director's ruling.

2. The appeal shall be signed by the person making the appeal or by the person's attorney and contain the grounds for appeal and the reasons for believing the person is entitled to a hearing.

3. When an appeal is filed, the Commission shall review the record and may affirm, reverse, or modify the Director's ruling or conduct other proceedings the Commission deems appropriate.

B.Permit denial, suspension, or revocation.

1. As required under A.R.S. § 5-108.01(A), the Commission shall hold a hearing on an application for an original or renewal permit. The Commission shall provide 30 days' notice of the hearing.

2. The Commission shall revoke or suspend a permit only after notice and opportunity for hearing. The Commission shall give notice of the hearing in writing at least 30 days before the date set for hearing, unless the 30 days' notice is waived in writing by the permittee.

3. Unless specifically ordered otherwise, if the Commission suspends one license held by an individual, all licenses held by the individual are suspended for the term of the suspension.

3. 4. A party appearing before the Commission shall be afforded an opportunity for a hearing and to respond and present evidence and argument on all issues.

4. 5. An individual appearing before the Commission has the right to appear in person or by counsel. A corporation appearing before the Commission shall appear through counsel. A party may submit the party's case in writing. If a party fails to appear for a hearing, the Commission may act on the evidence without further notice to the party. The Commission may reopen a proceeding if a party to the proceeding submits a written petition to the Commission within XX days after the proceeding.

C.Hearing officer. If the Commission assigns a matter to a hearing officer, the hearing officer shall submit to the Commission within 15 days after conclusion of the hearing a written decision that includes proposed findings of fact, conclusions of law, and order. The Commission may accept, reject, or modify the decision of the hearing officer . Unless modified, the decision of the hearing officer becomes the decision of the Commission 45 days after the hearing officer submits the decision to the Commission.

D.Depositions.

1. If a party desires to take the oral deposition of a witness residing outside the state or otherwise unavailable as a witness, the party shall file with the Commission a petition for permission to take the deposition of the witness. The party shall specify in the deposition petition the name and address of the witness and the nature and substance of the testimony expected to be given by the witness. The Commission shall grant permission to take the deposition if the Commission is able to determine from the petition that the witness resides outside the state or is otherwise unavailable and the witness's testimony is relevant and material.

2. The Commission may, at Commission's discretion, designate the time and place at which the deposition may be taken. The party that takes a deposition is responsible for all expenses involved in taking the deposition.

3. A party taking a deposition under this subsection shall return and file the deposition with the Commission within 30 days after permission for taking the deposition is granted.

E.Service.

1. The Commission shall make service of a decision, order, or other process in person or by mail. The Commission shall make service by mail by enclosing a copy of the material to be served in a sealed envelope and depositing the envelope in the United States mail, postage prepaid, addressed to the party served, at the address shown by the records of the Department,. The Commission shall mail a notice of a hearing before the Commission by certified mail to the last known address of the party shown by the records of the Department.

Proof of service may be made by the affidavit or oral testimony of the person making the service.

3. The Commission shall calculate time periods prescribed or allowed by this Chapter, order of the Department, or applicable statute as provided in the Rules of Civil Procedure.

4. Service upon an attorney who has appeared on behalf of a party constitutes service upon the party. A person required to serve papers upon the Commission, shall file an original and five copies in the office of the Department and serve a copy on the Attorney General.

F.Rehearing or review.

1. Except as provided in subsection (F)(7), a party aggrieved by a final administrative decision rendered by the Commission may file with the Commission within 30 days after service of the final administrative decision, a written motion for rehearing or review of the decision. A party filing a motion for rehearing or review of a decision shall specify the particular grounds on which the motion is made.

2. A motion for rehearing or review may be amended at any time before it is ruled upon by the Commission. A response may be filed within 10 days after service of the motion or amended motion by any other party. The Commission may require the filing of written briefs on the issues raised in the motion and may provide for oral argument.

3. The Commission may grant a rehearing or review of decision for any of the following causes materially affecting a party's rights:

a. Irregularity in the administrative proceedings, or an order or abuse of discretion that deprived a party of a fair hearing;

b. Misconduct of the hearing officer, Commission, or the prevailing party;

c. Accident or surprise that could not have been prevented by ordinary prudence;

d. Newly discovered material evidence that could not, with reasonable diligence, have been discovered and produced at the original hearing;

e. Excessive or insufficient penalty;

f. Error in the admission or rejection of evidence or other errors of law occurring at the administrative hearing or during the progress of the proceedings; and

g. The findings of fact or decision is not justified by the evidence or is contrary to law.

4. The Commission may affirm or modify a decision or grant a rehearing to all or any of the parties on all or part of the issues for any of the reasons listed in subsection (F)(3). The Director shall specify with particularity the grounds for an order modifying a decision or granting a rehearing. A rehearing shall cover only the matters specified.

5. Not later than 10 days after the date of a decision, after giving the parties notice and an opportunity to be heard, the Commission may, on its own initiative, order a rehearing or review for any reason for which the Commission may have granted a rehearing on motion of a party. After giving the parties or their counsel notice and an opportunity to be heard, the Commission may grant a motion for rehearing or review for a reason not stated in the motion. In either case, the Commission shall ensure that the order granting a rehearing or review specifies the grounds for the order.

6. When a motion for rehearing or review is based upon affidavits, the party making the motion shall serve the affidavits with the motion. An opposing party may, within 15 days after service, serve opposing affidavits. This period may be extended by the Commission for an additional 20 days for good cause shown or by written stipulation of the parties. Reply affidavits may be permitted.

7. If the Commission makes a specific finding that a particular decision needs to be effective immediately to preserve the public peace, health, safety, and welfare and that a rehearing or review of the decision is impracticable, unnecessary, or contrary to the public interest, the Commission shall issue the decision as a final decision without an opportunity for a rehearing or review.

8. For purposes of this subsection the terms "contested case" and "party" shall be defined as provided in A.R.S. & 41-1001.

9. 8. To the extent that the provisions of this Section are in conflict with the provisions of any statute providing for rehearing of decisions of the Commission, the statutory provisions shall govern.

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended effective March 20, 1990 (Supp. 90-1). R19-2-124 recodified from R4-27-124 (Supp. 95-1). Amended by final rulemaking at 19 A.A.R. 3412, effective November 30, 2013.

Ariz. Admin. Code § R19-2-125 Arizona Stallion Awards

A. Definitions

1. "Arizona stallion" means an uncastrated, adult male horse that stands the entire breeding season in Arizona.

2. "Breeding year" means the period beginning January 1 and ending July 31.

3. "Fiscal year" means the period beginning July 1 and ending June 30.

"Owner" means the person who possesses the stallion at the time of the person's certification application for the fiscal year, according to the records of the Department.

B. Owner and lessee eligibility. For an owner or the lessee of an Arizona stallion to be eligible for an award of funds for a fiscal year:

1. The owner or lessee shall:

a. Apply for stallion certification by the due date set by the breeders association for complying with the requirement in subsection (D);

b. Submit the breeder report required in subsection (E); and,

c. Comply with subsection (F) if applicable.

2. In the event of death or the retirement of a stallion, the owner or lessee remains eligible for awards if the requirements in subsection (D) are followed.

3. The stallion shall be certified at the time its eligible Arizona-bred offspring earn purse money in races listed in subsection (H).

C. Qualifications for Arizona stallion certification. To qualify for Arizona stallion certification for the fiscal year, an owner or lessee shall:

Permanently domicile the stallion in Arizona from January 1 through July 31. During this time, the owner or lessee may move the stallion outside of Arizona for racing or for medical treatment;

2. Register the stallion with the Arizona breed registry that corresponds to the stallion's national breed registry; and

3. Notify the appropriate Arizona breed registry within 10 days of the stallion entering or leaving Arizona during the breeding year.

D. Application procedure for stallion certification

1. By the due date set by the appropriate Arizona breeders association, and approved by the Commission in accordance with subsection (D)(2)(b), an owner or lessee may apply for Arizona stallion certification for the fiscal year. The owner or lessee shall:

a. File an official application form with the Arizona breeders' association for each stallion owned or leased; and

b. Pay a certification fee for each stallion when the application form is filed.

2. The Arizona breeders association shall:

a. Forward a legible copy of the completed application to the Department;

b. Set an application due date and reasonable certification fee, if these actions are authorized by the Commission in a contract permitted under A.R.S. § 5-114(D).

3. The Commission shall review and approve or reject each contract for stallion certification.

E. Breeding report

1. A quarter horse stallion owner or lessee shall submit a legible copy of the annual "Stallion Breeding Report" to the breeders association monitoring quarter horse stallions by November 30 of the current breeding year.

2. Except as provided in subsection (F), a thoroughbred stallion owner or lessee shall submit a legible copy of the annual "Report of Mares Bred" to the breeders association monitoring thoroughbred stallions by August 1 of the current breeding year.

F. Thoroughbred stallion bred to quarter horse mares

1. If a thoroughbred stallion is being bred to quarter horse mares, an owner or lessee shall send the application, fees, and breeding report required in subsections (D) and (E)(1) to the breeders association monitoring quarter horse stallions.

2. If a thoroughbred stallion is being bred to thoroughbred and quarter horse mares, an owner or lessee shall send the application, fees, and breeding reports required in subsections (D) and (E) to both of the Arizona breeders associations.

G. Disqualification and Reinstatement

1. If a stallion owner or lessee fails to comply with applicable requirements in subsections (B), (C), (D), (E), and (F) the Department shall disqualify the owner or lessee from receiving an award of fund monies during the affected fiscal year.

2. To reinstate eligibility for subsequent years, the owner or lessee shall pay the certification fee prescribed in subsection (D)(1)(b) and comply with applicable requirements in subsections (B), (C), (D), (E), and (F).

H. Award races. Except for maiden claiming and maiden allowance races at Arizona racetracks, the following are eligible races:

1. Quarter horses:

a. All races with a purse value of $10,000 or more;

b. All allowance races;

c. At the Turf Paradise meet, all claiming races with a claiming price of $3,500 or more; and

d. At other Arizona racetracks, all claiming races with a claiming price of $2,500 or more.

2. Thoroughbreds:

a. The Prescott Futurity, the Prescott Derby, and all races with a purse value of $15,000 or more;

b. The Inaugural, the Mile High, and all allowance races;

c. At the Turf Paradise meet, all claiming races with a claiming price of $6,000 or more; and

d. At other Arizona racetracks, all claiming races with a claiming price of $3,500 or more.

I. Fund distribution procedures

1. The Arizona breeders associations shall submit to the Department, at least annually, a written report that contains the following information:

a. The names of certified Arizona stallions for the fiscal year;

b. The names of certified Arizona-bred offspring of the Arizona stallions. Arizona-bred horses may be certified by following the procedures prescribed in R19-2-116(A) and (B) ;

c. The first, second, and third place finishes of each certified Arizona-bred horse, sired by a certified Arizona stallion, in each eligible race; and,

d. The earnings in each race of each Arizona-bred horse sired by a certified Arizona stallion.

2. The Department shall:

a. Hold 10% of the monies accumulated prior to the 1996-97 fiscal year for contingent liabilities;

b. Calculate a payment factor at the end of each fiscal year by dividing the total monies available, under subsections (I)(2)(d), (e), (f), or (g), by the total dollar value of purses, not to exceed $30,000 per horse per race, won in eligible races during the fiscal year;

c. Multiply the payment factor by the total purse amount won in eligible races during the fiscal year;

d. Distribute to eligible owners or lessees 40% of the amount accumulated in the fund prior to the 1996-97 fiscal year and the amount earned by the fund during the 1996-97 fiscal year;

e. Distribute to eligible owners or lessees 25% of the amount accumulated in the fund prior to the 1996-97 fiscal year and the amount earned by the fund during the 1997-98 fiscal year;

f. Distribute to eligible owners or lessees 25% of the amount accumulated in the fund prior to the 1996-97 fiscal year and the amount earned by the fund during the 1998-99 fiscal year; and,

g. Distribute to eligible owners or lessees the amount earned by the fund during the fiscal year for the years after the 1998-99 fiscal year.

3. The owner or lessee shall designate, on a form provided by the Department, the single payee to whom Arizona stallion award checks shall be issued when there is more than one owner of a stallion.

J. Appeal of Director's rulings

1. The Director shall make the final decision concerning a stallion award.

2. The Department shall give written notice of the decision to an applicant by mailing it to the address of record filed with the Department.

3. After service of the Director's decision, an aggrieved party may obtain a hearing under A.R.S. §§ 1092.03 through 41-1092.11.

4. The aggrieved party shall file a notice of appeal with the Department within 30 days after receiving the notice prescribed in R19-2-125(J)(2).

5. The Department shall notify the Office of Administrative Hearings, which shall schedule and conduct the hearing.

History

• Adopted effective November 7, 1996 (Supp. 96-4).

Ariz. Admin. Code § R19-2-126 Race Horse Adoption Grants

A. The Commission shall provide financial grants to nonprofit enterprises to promote the adoption of retired race horses. The Commission shall distribute all of the retired race horse adoption surcharge funds generated from A.R.S. § 5-104(G) to nonprofit enterprises.

B. Procedures.

1. A nonprofit enterprise that wishes to receive a financial grant shall submit a Department-generated application form to the Commission. In 2005, the Commission shall set the date by which applications are to be received. After 2005, the Commission shall accept applications until March 1 of each year. The nonprofit enterprise shall provide the following information:

a. A written description of the nonprofit enterprise,

b. Proof of nonprofit status,

c. The proposed use of the grant,

d. A description of the nonprofit enterprise's procedures to acclimate the horses as required by subsection (C)(6),

e. A description of the nonprofit enterprise's adoption procedures as required by subsection (C)(7),

f. A copy of the application form and adoption agreement required by subsections (C)(7)(a) and (c), and

g. A copy of the transfer of registration or bill of sale required by subsection (C)(8).

2. If the Commission finds that the adoption program of a nonprofit enterprise is in the best interest of the racing industry and this state, the Commission shall decide whether to make a grant to the nonprofit enterprise, the amount of the grant, and the date of disbursement of the grant.

3. A recipient of a grant shall report annually to the Commission on a form provided by the Department to gather the following information:

a. The number of horses the nonprofit enterprise received;

b. The number of horses adopted;

c. The number of horses returned by an adoptee and reason for each return;

d. The actual use of the grant;

e. A list of people who adopted the horses, or a copy of the contract between the nonprofit enterprise and each adoptee; and

f. The most recent Articles of Incorporation filing with the Arizona Corporation Commission.

C. Minimum qualifications.

1. The enterprise shall be nonprofit.

2. The enterprise shall not:

a. Allow a horse to be used for racing, wagering, or slaughter; or

b. Place a horse with a humane society or research facility;

3. The enterprise shall not euthanize an adoptable horse unless, as determined by a licensed veterinarian, it is medically necessary for humane reasons.

4. The enterprise shall be affiliated with a racetrack that conducts horse racing. Affiliation is satisfied when the general manager or other executive from the racetrack submits to the Commission a written recommendation on behalf of the enterprise.

5. The enterprise shall require that a licensed veterinarian perform a complete check-up on each horse before releasing the horse to an adoptee. The enterprise shall ensure that each horse receives all medical care necessary to maintain its good health.

6. The enterprise shall employ procedures for acclimating a horse that include:

a. Exposure to the public,

b. Exposure to a new diet, and

c. Training for off-track life.

7. The enterprise shall employ procedures for adopting-out horses that include:

a. An application process for prospective adoptees;

b. A visual check of each prospective adoptee's farm with written documentation of the visit;

c. A written adoption agreement between the enterprise and adoptee;

d. At a minimum, follow-ups conducted by phone or visit after seven and 30 days with written documentation; and

e. Procedures for the return of a horse.

8. Before assuming care of a horse, the enterprise shall obtain a transfer of registration or bill of sale for the horse.

9. The enterprise shall make available a person to complete and submit all filing requirements and to answer questions from a prospective or current adoptee.

10. The enterprise shall keep a file on each horse that includes:

a. The transfer of registration or bill of sale;

b. The vaccination record, health record, and all veterinarian reports;

c. The adoptee's application form;

d. The written adoption agreement between the enterprise and adoptee; and

e. The written documentation of pre-adoption check and follow-ups.

11. The enterprise shall state in the adoption agreement the rules and responsibilities required of the adoptee.

12. The enterprise shall make the records required in subsection (C)(11) available for inspection by a representative of the Department.

13. The enterprise shall allow the Department to inspect the facilities, farm, or location of the adopted horses.

History

• New Section made by final rulemaking at 11 A.A.R. 1566, effective June 4, 2005 (Supp. 05-2).

Article 2 RACING REGULATION FUND

Ariz. Admin. Code § R19-2-201 Racing Regulation Fund

The Racing Regulation Fund, established by A.R.S. § 5-113.01, and administered by the Department of Racing, shall collect funding for regulation of racing from the pari-mutuel racing industry from the sources listed below. The Department shall review assessments from each source at least twice a year for the purposes of meeting its budget.

1. Annual license fees established by the Department and set forth in R19-2-202, except for those fees deposited to the Greyhound Adoption Fund pursuant to A.R.S. § 5-113(H).

2. A regulatory assessment based on the number of dark days on which wagering is conducted in excess of live racing days for each racetrack permittee issued a racing permit. The assessment shall be in an amount established by the Department and set forth in R19-2-204.

3. A regulatory assessment from all racetracks that have been issued a commercial racing permit to be paid from the amount deducted by the permittee from pari-mutuel pools. The assessment amount may be deducted from pari-mutuel pools in addition to the amounts the permittee is authorized to deduct in A.R.S. § 5-111(C). The assessment shall be based on amounts wagered on live and simulcast races from in-state and out-of-state wagering handled by the permittee in an amount established by the Department, and as set forth in R19-2-205 . A permittee shall not reduce the amounts payable to the Department under this subsection for hardship tax credits under A.R.S. § 5-111(I) or for capital improvement credits under A.R.S. §§ 5-111.02 and 5-111.03.

4. License fees collected pursuant to A.R.S. § 5-230(A).

5. The overpayment of a regulatory assessment by a permittee shall be credited to and may be deducted from any regulatory assessment payment due from the permittee in the current fiscal or the following fiscal year.

History

• New Section made by exempt rulemaking at 17 A.A.R. 1484, effective July 20, 2011 (Supp. 11-3). Amended by exempt rulemaking at 18 A.A.R. 3260, effective November 16, 2012 (Supp. 12-4).

Ariz. Admin. Code § R19-2-202 Licensing Fees

A. When an applicant submits a license application pursuant to R19-2-106 or R19-2-306, the applicant shall also submit the fee listed in subsections (C) and (D). The Department shall ensure that a schedule of license and fingerprint processing fees is displayed prominently at each licensing location.

B. A license shall be for a period of no less than one year except as stated in subsection (B)(1)(a).

1. Horse racing licenses expire each year on June 30 except that:

a. Apprentice jockey licenses expire as provided in R19-2-109(D)(2) ; and

b. All licenses issued prior to July 1, 2013, will expire on June 30, 2014.

2. Greyhound licenses expire each year on January 31 except that all licenses issued prior to February 1, 2013, will expire on January 31, 2014.

Pari-mutuel licenses expire each year on January 31 except that all licenses issued prior to February 1, 2013, will expire on January 31, 2014.

C. Annual License Fees

1. Group 1 (assistant starter/valet, coolout, exercise rider, groom, leadout, occupational, OTB [owner, manager], outrider, pari-mutuel [including OTB], pony person, security) - $15.

2. Group 2 (authorized agent-partial, greyhound hauler, jockey agent, vendor employee) - $50.

3. Group 3 (county fair manager, county fair treasurer, official) - $100.

Group 4 (assistant trainer, commercial track key people: owner [10% or more], general manager, assistant general manager, chief financial officer; owner, RBO [kennel, racing or breeding], stable name, temporary claim to owner, trainer) - $150.

5. Group 5 (apprentice jockey, authorized agent - full, combination RBO [racing/breeding combination], farrier/plater, jockey, owner/trainer, veterinarian) - $200.

6. Group 6 - fees above $200

a. Tote companies - $1,250;

b. All other vendors (video, photo finish, concessionaires, security) - $500.

D. Annual Permittee Fees.

1. Commercial racing permit (40 or fewer days of live racing or no live racing) - $1,000;

2. Commercial racing permit (more than 40 days of live racing) - $2,500;

County fair permit - $250.

History

• New Section made by exempt rulemaking at 17 A.A.R. 1484, effective July 20, 2011 (Supp. 11-3). Amended by exempt rulemaking at 18 A.A.R. 1752, effective July 1, 2012 (Supp. 12-2). Amended by exempt rulemaking at 19 A.A.R. 68, effective January 1, 2013 (Supp. 12-4).

Ariz. Admin. Code § R19-2-203 [REPEALED]

History

• New Section made by exempt rulemaking at 17 A.A.R. 1484, effective July 20, 2011 (Supp. 11-3). Repealed by exempt rulemaking at 18 A.A.R. 3260, effective November 16, 2012 (Supp. 12-4).

Ariz. Admin. Code § R19-2-204 Regulatory Assessment for Dark Day Simulcasting

A. The Department shall collect an annual regulatory assessment from each racetrack permittee conducting horse or greyhound racing in Arizona and which qualifies under A.R.S. § 5-112 for dark day simulcasting.

B. Each permittee shall pay an amount established by the Department based on the number of dark days on which wagering is conducted in excess of the number of live days approved in the racing permit issued the permittee.

1. The Department shall at the start of the year on or before July 1 assess each permittee $25 per dark day based upon the total number of dark days approved in the permittee's racing permit. The calculation will be determined by the number of dark days approved by the Arizona Racing Commission in excess of the number of live days approved each year during the period of the permit.

2. The permittee shall transmit the total dark day assessment to the Racing Regulation Fund no later than July 15 of each year.

History

• New Section made by exempt rulemaking at 17 A.A.R. 1484, effective July 20, 2011 (Supp. 11-3).

Ariz. Admin. Code § R19-2-205 Regulatory Wagering Assessment of Pari-Mutuel Pools

A. The Department shall establish and collect a regulatory wagering assessment payable from the amounts deducted from pari-mutuel pools by the permittee, in addition to the amounts the permittee is authorized to deduct in A.R.S. § 5-111(C) from amounts wagered on all live and simulcast races from in-state and out-of-state wagering authorized by the Department to the permittee. A permittee shall not reduce the amounts payable to the Department under this subsection for hardship tax credit under A.R.S. § 5-111(I) or for capital improvement credits under A.R.S. §§ 5-111.02 and 5-111.03.

B. The regulatory wagering assessment for each racing meeting on all in-state and/or out-of-state, on-track, off-track, live, import and/or export wagers and/or wager types (the "RWA") shall be 0.75 percent from May 1 to September 30 of each year and, the RWA shall be 0.85 percent beginning October 1 of each year through April 30 of the next year.

C. Each permittee shall transmit its assessment daily, unless otherwise approved by the Department, to the Racing Regulation Fund beginning July 1, 2011. A report detailing the assessment shall be transmitted to the Director at the time the assessment is transmitted.

D. The Department may audit the permittee's pari-mutuel accounts periodically under the authority of A.R.S. § 5-104.01. The permittee shall cooperate fully with the Department during these audits.

History

• New Section made by exempt rulemaking at 17 A.A.R. 1484, effective July 20, 2011 (Supp. 11-3). Amended by exempt rulemaking at 18 A.A.R. 1316, effective July 1, 2012 (Supp. 12-2). Amended by exempt rulemaking at 19 A.A.R. 68, effective January 1, 2013 (Supp. 12-4). Amended by exempt rulemaking at 19 A.A.R. 1767, effective July 1, 2013 (Supp. 13-2). Amended by exempt rulemaking at 20 A.A.R. 717, effective 3/1/2014. Amended by exempt rulemaking at 21 A.A.R. 640, effective 4/20/2015. Amended by exempt rulemaking at 23 A.A.R. 837, effective 3/20/2017.

Article 3 EXPIRED

Ariz. Admin. Code § R19-2-301 Expired

History

• Adopted effective August 5, 1983 (Supp. 83-4). R19-2-301 recodified from R4-27-301 (Supp. 95-1). Section expired under A.R.S. § 41-1056(J) at 26 A.A.R. 3259, effective December 2, 2020 (Supp. 20-4).

Ariz. Admin. Code § R19-2-302 Expired

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended effective November 30, 1988 (Supp. 88-4). Amended effective March 20, 1990 (Supp. 90-1). Amended effective February 28, 1995; R19-2-302 recodified from R4-27-302 (Supp. 95-1). Amended by exempt rulemaking at 17 A.A.R. 1484, effective July 20, 2011 (Supp. 11-3). Amended by final rulemaking at 19 A.A.R. 3412, effective November 30, 2013 (Supp. 13-4). Section expired under A.R.S. § 41-1056(J) at 26 A.A.R. 3259, effective December 2, 2020 (Supp. 20-4).

Ariz. Admin. Code § R19-2-303 Expired

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended effective March 20, 1990 (Supp. 90-1). R19-2-303 recodified from R4-27-303 (Supp. 95-1). Amended effective January 6, 1998 (Supp. 98-1). Amended by final rulemaking at 11 A.A.R. 5534, effective February 4, 2006 (Supp. 05-4). Section expired under A.R.S. § 41-1056(J) at 26 A.A.R. 3259, effective December 2, 2020 (Supp. 20-4).

Ariz. Admin. Code § R19-2-304 Expired

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended subsection (Q) effective June 6, 1986 (Supp. 86-3). Amended effective March 20, 1990 (Supp. 90-1). Amended effective August 6, 1991 (Supp. 91-3). R19-2-304 recodified from R4-37-304 (Supp. 95-1). Amended by final rulemaking at 12 A.A.R. 1771, effective July 1, 2006 (Supp. 06-2). Amended by exempt rulemaking at 17 A.A.R. 1484, effective July 20, 2011 (Supp. 11-3). Section expired under A.R.S. § 41-1056(J) at 26 A.A.R. 3259, effective December 2, 2020 (Supp. 20-4).

Ariz. Admin. Code § R19-2-305 Expired

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended effective March 20, 1990 (Supp. 90-1). R19-2-305 recodified from R4-27-305 (Supp. 95-1). Section expired under A.R.S. § 41-1056(J) at 26 A.A.R. 3259, effective December 2, 2020 (Supp. 20-4).

Ariz. Admin. Code § R19-2-306 Expired

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended subsections (G) and (I) effective January 25, 1985 (Supp. 85-1). Amended subsections (F) and (G) effective December 5, 1985 (Supp. 85-6). Amended subsections (F) and (G) effective February 19, 1987 (Supp. 87-1). Amended subsections (A) and (B) effective October 23, 1987 (Supp. 87-4). Amended subsections (E), (F) and (G) effective November 30, 1988 (Supp. 88-4). Amended effective March 20, 1990 (Supp. 90-1). Amended effective January 13, 1995 (Supp. 95-1). R19-2-306 recodified from R4-27-306 (Supp. 95-1). Amended effective January 6, 1998 (Supp. 98-1). Amended by final rulemaking at 10 A.A.R. 4483, effective December 4, 2004 (Supp. 04-4). Amended by exempt rulemaking at 17 A.A.R. 1484, effective July 20, 2011 (Supp. 11-3). Amended by final rulemaking at 19 A.A.R. 3412, effective November 30, 2013. Section expired under A.R.S. § 41-1056(J) at 26 A.A.R. 3259, effective December 2, 2020 (Supp. 20-4).

Ariz. Admin. Code § R19-2-307 Expired

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended effective March 20, 1990 (Supp. 90-1). R19-2-307 recodified from R4-27-307 (Supp. 95-1). Amended by final rulemaking at 19 A.A.R. 3412, effective November 30, 2013. Section expired under A.R.S. § 41-1056(J) at 26 A.A.R. 3259, effective December 2, 2020 (Supp. 20-4).

Ariz. Admin. Code § R19-2-308 Expired

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended effective November 30, 1988 (Supp. 88-4). Amended effective March 20, 1990 (Supp. 90-1). R19-2-308 recodified from R4-27-308 (Supp. 95-1). Amended by final rulemaking at 12 A.A.R. 1771, effective July 1, 2006 (Supp. 06-2). Section expired under A.R.S. § 41- 1056(J) at 26 A.A.R. 3259, effective December 2, 2020 (Supp. 20-4).

Ariz. Admin. Code § R19-2-309 Expired

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended subsections (A) and (E) effective November 30, 1988 (Supp. 88-4). Amended effective March 20, 1990 (Supp. 90-1). R19-2-309 recodified from R4-27-309 (Supp. 95-1). Amended effective August 7, 1996 (Supp. 96-3). Amended by final rulemaking at 11 A.A.R. 5534, effective February 4, 2006 (Supp. 05-4). Amended by final rulemaking at 19 A.A.R. 3412, effective November 30, 2013 (Supp. 13-4). Section expired under A.R.S. § 41-1056(J) at 26 A.A.R. 3259, effective December 2, 2020 (Supp. 20-4).

Ariz. Admin. Code § R19-2-310 Expired

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended effective March 20, 1990 (Supp. 90-1). R19-2-310 recodified from R4-27-310 (Supp. 95-1). Section expired under A.R.S. § 41-1056(J) at 26 A.A.R. 3259, effective December 2, 2020 (Supp. 20-4).

Ariz. Admin. Code § R19-2-311 Expired

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended effective November 30, 1988 (Supp. 88-4). Amended effective March 20, 1990 (Supp. 90-1). R19-2-311 recodified from R4-27-311 (Supp. 95-1). Citations corrected in subsections 12 and 17 at the request of the Arizona Department of Racing (Supp. 96-4). Amended by final rulemaking at 19 A.A.R. 3412, effective November 30, 2013 (Supp. 13-4). Section expired under A.R.S. § 41-1056(J) at 26 A.A.R. 3259, effective December 2, 2020 (Supp. 20-4).

Ariz. Admin. Code § R19-2-312 Expired

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended effective March 20, 1990 (Supp. 90-1). R19-2-312 recodified from R4-27-312 (Supp. 95-1). Amended by final rulemaking at 12 A.A.R. 1771, effective July 1, 2006 (Supp. 06-2). Section expired under A.R.S. § 41- 1056(J) at 26 A.A.R. 3259, effective December 2, 2020 (Supp. 20-4).

Ariz. Admin. Code § R19-2-313 Expired

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended effective March 20, 1990 (Supp. 90-1). R19-2-313 recodified from R4-27-313 (Supp. 95-1). Amended by final rulemaking at 12 A.A.R. 1771, effective July 1, 2006 (Supp. 06-2). Section expired under A.R.S. § 41- 1056(J) at 26 A.A.R. 3259, effective December 2, 2020 (Supp. 20-4).

Ariz. Admin. Code § R19-2-314 Expired

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended effective March 20, 1990 (Supp. 90-1). R19-2-314 recodified from R4-27-314 (Supp. 95-1). Amended by final rulemaking at 12 A.A.R. 1771, effective July 1, 2006 (Supp. 06-2). Section expired under A.R.S. § 41- 1056(J) at 26 A.A.R. 3259, effective December 2, 2020 (Supp. 20-4).

Ariz. Admin. Code § R19-2-315 Expired

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended effective March 20, 1990 (Supp. 90-1). R19-2-315 recodified from R4-27-315 (Supp. 95-1). Amended by final rulemaking at 12 A.A.R. 1771, effective July 1, 2006 (Supp. 06-2). Section expired under A.R.S. § 41- 1056(J) at 26 A.A.R. 3259, effective December 2, 2020 (Supp. 20-4).

Ariz. Admin. Code § R19-2-316 Expired

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended effective March 20, 1990 (Supp. 90-1). R19-2-316 recodified from R4-27-316 (Supp. 95-1). Amended by final rulemaking at 12 A.A.R. 1771, effective July 1, 2006 (Supp. 06-2). Section expired under A.R.S. § 41- 1056(J) at 26 A.A.R. 3259, effective December 2, 2020 (Supp. 20-4).

Ariz. Admin. Code § R19-2-317 Expired

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended effective March 20, 1990 (Supp. 90-1). R19-2-317 recodified from R4-27-317 (Supp. 95-1). Amended by final rulemaking at 12 A.A.R. 1771, effective July 1, 2006 (Supp. 06-2). Section expired under A.R.S. § 41- 1056(J) at 26 A.A.R. 3259, effective December 2, 2020 (Supp. 20-4).

Ariz. Admin. Code § R19-2-318 [REPEALED]

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended effective March 20, 1990 (Supp. 90-1). R19-2-318 recodified from R4-27-318 (Supp. 95-1). Section repealed by final rulemaking at 12 A.A.R. 1771, effective July 1, 2006 (Supp. 06-2).

Ariz. Admin. Code § R19-2-319 Expired

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended subsection (A) effective August 21, 1985 (Supp. 85-4). Amended subsection (A) and added subsections (D) through (G) effective August 13, 1986 (Supp. 86-4). Amended subsection (D) effective February 19, 1987 (Supp. 87-1). Amended effective March 20, 1990 (Supp. 90-1). R19-2-319 recodified from R4-27-319 (Supp. 95-1). Amended effective January 10, 1997 (Supp. 97-1). Section expired under A.R.S. § 41-1056(J) at 26 A.A.R. 3259, effective December 2, 2020 (Supp. 20-4).

Ariz. Admin. Code § R19-2-320 Expired

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended effective March 20, 1990 (Supp. 90-1). R19-2-320 recodified from R4-27-320 (Supp. 95-1). Amended by final rulemaking at 12 A.A.R. 1771, effective July 1, 2006 (Supp. 06-2). Section expired under A.R.S. § 41- 1056(J) at 26 A.A.R. 3259, effective December 2, 2020 (Supp. 20-4).

Ariz. Admin. Code § R19-2-321 [REPEALED]

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended by adding subsection (O) effective September 17, 1984. Amended subsection (D) paragraph (6) effective October 18, 1984 (Supp. 84-5). Amended by adding subsection (P) effective April 4, 1985 (Supp. 85-2). Amended subsection (N) effective November 29, 1985 (Supp. 85-6). Amended subsection (P) paragraph (19) effective June 6, 1986 (Supp. 86-3). Amended by adding subsections (Q), (R), (S), (T), (U) and (V) effective February 19, 1987 (Supp. 87-1). Amended by adding subsections (W) and (X) effective October 14, 1988 (Supp. 88-4). Repealed effective March 20, 1990 (Supp. 90-1). R19-2-321 recodified from R4-27-321 (Supp. 95-1).

Ariz. Admin. Code § R19-2-322 Expired

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended effective March 20, 1990 (Supp. 90-1). R19-2-322 recodified from R4-27-322 (Supp. 95-1). Amended by final rulemaking at 19 A.A.R. 3412, effective November 30, 2013 (Supp. 13-4). Section expired under A.R.S. 41-1056(J) at 26 A.A.R. 3259, effective December 2, 2020 (Supp. 20-4).

Ariz. Admin. Code § R19-2-323 Expired

History

• Adopted effective August 5, 1983 (Supp. 83-4). Amended effective March 20, 1990 (Supp. 90-1). R19-2-323 recodified from R4-27-323 (Supp. 95-1). Amended by final rulemaking at 19 A.A.R. 3412, effective November 30, 2013 (Supp. 13-4). Section expired under A.R.S. § 41-1056(J) at 26 A.A.R. 3259, effective December 2, 2020 (Supp. 20-4).

Ariz. Admin. Code § R19-2-324 Expired

History

• Adopted effective March 1, 1995; R19-2-324 recodified from R4-27-324 (Supp. 95-1). Section expired under A.R.S. § 41-1056(J) at 26 A.A.R. 3259, effective December 2, 2020 (Supp. 20-4).

Ariz. Admin. Code § R19-2-325 Expired

History

• Adopted effective March 1, 1995; R19-2-325 recodified from R4-27-325 (Supp. 95-1). Amended effective August 7, 1996 (Supp. 96-3). Section expired under A.R.S. § 41- 1056(J) at 26 A.A.R. 3259, effective December 2, 2020 (Supp. 20-4).

Ariz. Admin. Code § R19-2-326 Expired

History

• Adopted effective March 1, 1995; R19-2-326 recodified from R4-27-326 (Supp. 95-1). Section expired under A.R.S. § 41-1056(J) at 26 A.A.R. 3259, effective December 2, 2020 (Supp. 20-4).

Ariz. Admin. Code § R19-2-327 Expired

History

• Adopted effective March 1, 1995; R19-2-327 recodified from R4-27-327 (Supp. 95-1). Section expired under A.R.S. § 41-1056(J) at 26 A.A.R. 3259, effective December 2, 2020 (Supp. 20-4).

Ariz. Admin. Code § R19-2-328 Expired

History

• Adopted effective March 1, 1995; R19-2-328 recodified from R4-27-328 (Supp. 95-1). Amended by final rulemaking at 12 A.A.R. 1771, effective July 1, 2006 (Supp. 06-2). Section expired under A.R.S. § 41-1056(J) at 26 A.A.R. 3259, effective December 2, 2020 (Supp. 20-4).

Ariz. Admin. Code § R19-2-329 Expired

History

• Adopted effective March 1, 1995; R19-2-329 recodified from R4-27-329 (Supp. 95-1). Amended by final rulemaking at 12 A.A.R. 1771, effective July 1, 2006 (Supp. 06-2). Section expired under A.R.S. § 41-1056(J) at 26 A.A.R. 3259, effective December 2, 2020 (Supp. 20-4).

Ariz. Admin. Code § R19-2-330 Expired

History

• Adopted effective March 1, 1995; R19-2-330 recodified from R4-27-330 (Supp. 95-1). Section expired under A.R.S. § 41-1056(J) at 26 A.A.R. 3259, effective December 2, 2020 (Supp. 20-4).

Ariz. Admin. Code § R19-2-331 Expired

History

• Adopted effective February 28, 1995; R19-2-331 recodified from R4-27-331 (Supp. 95-1). Section expired under A.R.S. § 41-1056(J) at 26 A.A.R. 3259, effective December 2, 2020 (Supp. 20-4).

Ariz. Admin. Code § R19-2-332 Expired

History

• Adopted effective January 6, 1998 (Supp. 98-1). Section expired under A.R.S. § 41-1056(J) at 26 A.A.R. 3259, effective December 2, 2020 (Supp. 20-4).

Article 4 ADVANCED DEPOSIT WAGERING, TELETRACKING, AND SIMULCASTING

Ariz. Admin. Code § R19-2-401 Definitions

In addition to the definitions in R19-2-102 and R19-2-302, unless the context otherwise requires, the following definitions apply in this Article:

1. "Account holder" means "natural person" not otherwise precluded from wagering by any Arizona statute or rule.

2. "Advance deposit wagering (ADW)" means a mechanism for pari-mutuel wagering in which wagers are debited and payouts credited to an advance deposit account held by an association or ADWP on behalf of an account holder.

3. "Advance deposit wagering permit" means a permit issued by the Commission allowing an entity to conduct advance deposit wagering on behalf of a contracted Arizona racetrack permittee.

4. "Advance Deposit Wagering Vendor or Provider (ADWP)" means the Arizona licensed and racetrack permittee-contracted vendor providing advance deposit wagering services for Arizona resident account holders.

5. "Confidential Information" means advance deposit wagering account holders and their accounts; may include money transactions in to or out of accounts, specifics of monies wagered from any account on any race or series of races, the account number and security code of any account holder, the specifics of wagering interests wagered on, the specific identifying details of any account unless authorized by the account holder.

6. "Limited Event Wagering Operator" means a Racetrack enclosure or additional wagering facility that holds a permit issued by the Division of Racing to offer wagers on horseracing and that is licensed under this chapter and that is in compliance with licensure requirements under A.R.S. Title 5, Chapter 11 and A.A.C. Title 19, Chapter 4, Article 1.

6. 7. "Operating Hours" means the hours in which pari-mutuel windows are open at a teletrack facility.

7. 8. "Pari-Mutuel Output Data" means any data provided by the totalisator system other than sales transaction data including, but not limited to, odds, will pays, race results, and pay-off prices.

8. 9. "Racing Program" means the live races conducted at an authorized track, approved dark-day simulcasts and any simulcast races shown to the public in conjunction with live racing on which pari-mutuel wagering is allowed.

9. 10. "Sales transaction data" means the electronic signals transmitted between totalisator ticket-issuing machines or approved ADW wager-issuing equipment and the totalizator central processing unit for the purpose of accepting wagers and generating, canceling, and cashing pari-mutuel tickets; also, the financial information resulting from processing sales transaction data, such as handle and revenues.

10. 11. "Sending track" means the enclosure where a racing program of authorized live racing is conducted and from which teletracking originates.

11. 12. "Telephone" means any device that a person uses for voice communications in connection with the services of a telephone company, but does not include digital devices utilizing non-verbal communications.

12. 13. "Teletrack facility" means an additional wagering facility owned or leased by an Arizona permittee that is used for handling legal wagers.

13. 14. "Teletracking" means the telecast of live audio and visual signals of live or simulcast horse, mule, or greyhound racing programs conducted at an authorized enclosure within Arizona to an authorized additional wagering facility within Arizona, by a racetrack permittee for the purpose of pari-mutuel wagering, or the teletrack wagering conducted on the racing program.

14. 15. "Teletrack wagering" means pari-mutuel wagering conducted at a teletrack facility within Arizona on a racing program conducted at an authorized track within Arizona regardless of whether the racing program is telecast to the teletrack location.

15. 16. "Teletrack wagering permit" means a permit issued by the Commission authorizing an Arizona racetrack permittee to operate a single or multiple teletrack wagering facilities within the state for the purpose of pari-mutuel wagering.

16. 17. "TIM-to-tote linkage" means the connection in which ticket issuing machines (TIM) are directly connected to the permittee's own calculating or compiling totalizator with no intermediate totalisator systems within that connection.

17. 18. "Tote-to-tote linkage" means the connection between totalisator systems in which one of the systems is not part of the permittee's calculating system and may or may not be used for the compilation of TIM-to-tote wagers within its own wagering network that are then forwarded to the permittee's calculating totalisator system.

18. 19. "Transmission" means the point-to-point sending and receiving of an audio or visual signal by any method approved by the Arizona Department of Racing.

History

• Adopted effective April 3, 1984 (Supp. 84-2). Amended by adding paragraphs (8) and (9) effective August 21, 1985 (Supp. 85-4). Repealed effective December 14, 1994 (Supp. 94-4). R19-2-401 recodified from R4-27-401 (Supp. 95-1). New Section adopted effective February 26, 1996, pursuant to an exemption from the rulemaking process (Supp. 96-1). Amended effective July 22, 1998, pursuant to an exemption from the rulemaking process (Supp. 98-3). Amended by exempt rulemaking at 5 A.A.R. 532, effective January 29, 1999 (Supp. 99-1). Amended by exempt rulemaking at 20 A.A.R. 2874, effective 10/10/2014. Amended by exempt rulemaking at 21 A.A.R. 643, effective 4/20/2015. Amended by exempt rulemaking at 27 A.A.R. 1437, effective 8/20/2021.
• Section R19-2-401 was adopted and subsequently amended under an exemption from the provisions of the Arizona Administrative Procedure Act pursuant to A.R.S. § 41-1005(A)(18). Exemption from the rulemaking process means that the agency did not submit these rules to the Secretary of State's Office for publication in the Register as proposed rules, the agency was not required to accept public comment, and the rules were not approved by either the Governor's Regulatory Review Council or the Attorney General.

Ariz. Admin. Code § R19-2-402 Adwp Licensing Requirements

A. An ADWP shall be licensed by the Department.

B. An ADWP shall comply with these and all other rules relating to entities permitted by the Commission as they apply to pari-mutuel wagering.

C. The Department may suspend or revoke an ADWP license, withdraw approval of a contract between an ADWP and a racetrack permittee, or impose fines if the ADWP, its officers, directors or employees violate these rules or applicable sections of A.R.S. Title 5 or fail to abide by orders of the Department.

D. An ADWP shall accept wagers only on the species for which the contracted Arizona racetrack permittee has a permit.

History

• Adopted effective April 3, 1984 (Supp. 84-2). Amended effective August 21, 1985 (Supp. 85-4). Repealed effective December 14, 1994 (Supp. 94-4). R19-2-402 recodified from R4-27-401 (Supp. 95-1). New Section adopted effective February 26, 1996, pursuant to an exemption from the rulemaking process (Supp. 96-1). New Section made by exempt rulemaking at 20 A.A.R. 2874, effective 10/10/2014.
• Section R19-2-402 was adopted under an exemption from the provisions of the Arizona Administrative Procedure Act pursuant to A.R.S. § 41-105(A)(18). Exemption from the rulemaking process means that the agency did not submit these rules to the Secretary of State's Office for publication in the Register as proposed rules, the agency was not required to accept public comment, and the rules were not approved by either the Governor's Regulatory Review Council or the Attorney General.

Ariz. Admin. Code § R19-2-403 Adw Permit Applications

The following rules shall apply to each teletrack facility:

1. At the Director's discretion, a Department representative may be present during all operating hours.

2. Suitable back-up or replacement tote equipment shall be available such that down time in the event of equipment failure shall be 60 minutes or less, during operating hours. At teletrack sites with multiple teller equipment installed, back-up equipment may consist of the remaining operating teller machines provided that the remaining machines are sufficient to handle the reasonably anticipated volume of sales transactions without unreasonable delays or inconvenience to patrons.

3. The permittee controlling the teletrack wagering permit is responsible during the racing program for reporting any problems or delays to the public.

4 Security requirements will be adequate to control disturbances.

5. Communications must allow the sending track and teletrack facility to communicate without delay. In a Tote-to-Tote situation, if the data transmission link between the tote systems fail, the permittee holding the teletrack permit shall decide the policy for paying off or refunding pari-mutuel tickets and all other communication failures at the teletrack site.

6. Photo finish pictures of the previous day's live races will be available for viewing upon request within 48 hours.

7. A video display showing the following information must be in operation at each teletrack facility during all operating hours:

a. All wagering information including pool totals, will pays, or odds as offered to the general public at the permittee racetrack location;

b. Each race shown live, as it is run;

c. Race Results;

d. Prices or payoff;

e. Minutes to post;

f. The corresponding race number and track for which the above information is displayed.

8. Notwithstanding subsection (7), should a video breakdown occur in the display of the race and wagering information, the permittee shall immediately contact the Director or his designee. Wagering may continue at the teletrack facility on the affected racing program for the remainder of that racing day provided the following conditions are met:

a. The racetrack permittee shall notify the wagering public at the affected teletrack facility of the nature of the breakdown;

b. The racetrack permittee shall make immediate and continuing efforts to repair the video breakdown;

c. The racetrack permittee shall provide the Director a written report concerning the circumstances within 48 hours of any such breakdown;

d. The racetrack permittee shall not accept wagers at the teletrack facility on the affected racing program for any performance on a subsequent racing day until the breakdown has been repaired. The Director may, upon written request, authorize the racetrack permittee to accept wagers at a teletrack facility despite an ongoing video breakdown;

e. If there is not a reasonable expectation of video reception, the racetrack permittee shall not accept wagers at the teletrack facility on the affected racing program. The Director may upon written request, authorize the racetrack permittee to accept wagers at a teletrack facility despite the lack of expectation of video reception.

9. Arizona pari-mutuel rules must be available in the wagering area.

10. Notice of any race cancellation, scratches, and other changes shall be posted conspicuously as soon as possible in the wagering area. In addition, it shall be the responsibility of the mutuel manager at the host permittee to disseminate all changes in wagering information to all teletrack wagering locations.

11. The results of each race, and the winnings therefrom, shall be posted as soon as possible at each teletrack facility and shall be available to the wagering public for 24 hours on the race day following the day of the race.

12. A permittee shall report to the Department any violation or suspected violation of law which occurs on or about the premises of the teletrack facility.

13. The permittee shall make daily handle and attendance reports for each teletrack facility as prescribed by the Department.

14. Betting Period:

a. Wagering may only be conducted during periods approved by the Director or Commission in respect to any race, racing card, pool or feature pool.

b. The Director may prescribe the closing time for pari-mutuel equipment at each facility based on the level of sophistication of the pari-mutuel equipment and transmission equipment.

15. The method used to transmit sales transaction and pari-mutuel output data shall be approved in writing by the Director, based upon the Director's determination that provisions to secure the system and transmissions are satisfactory.

16. The permittee shall provide computer reports pertaining to pari-mutuel activity as required by the Director.

A. A person, association, or corporation desiring to operate advance deposit wagering and open accounts for residents of Arizona shall file with the Department both a paper and electronic permit application that contains the information required in A.R.S. § 5-107. All electronic submissions shall be compatible with the Department's computer system and software. If any addendum to the permit application cannot be submitted electronically, the applicant shall submit the addendum in a paper copy.

B. An ADW permittee shall contract only with ADWPs licensed by the Department.

C. An ADWP shall pay daily the Regulatory Wagering Assessment (RWA) to the Department.

D. An ADWP shall provide daily wagering information to the Department and the contracted racetrack permittee for verification of RWA and source market fees at a time and in a manner specified by the Department.

E. A racetrack permittee shall verify that the total RWA paid each day for the both the racetrack's and the ADW's wagering activity is correct.

F. The following reports shall be available for inspection upon request by the Department in a form acceptable to the Department and at a place of the Department's choosing within a reasonable time:

1. ADW handle and related pari-mutuel data such as commission and breakage sorted by date, track or event, race and pool or by Source such as customer account; in total or detail;

2. Reports for taxation purposes;

3. Customer complaints;

4. List of active accounts;

5. List of excluded persons;

6. List of account holders;

7. Log of all system accesses; and

8. List of all deposits, withdrawals, wagers and winning payouts, in summary or detail.

G. An ADWP shall certify that the ADWP will provide the Department unrestricted access to all records and financial information of the ADWP, including all account information. The ADWP shall make this information available to the Department upon notice from the Department to the extent that disclosure is not expressly prohibited by law. Department access to and use of information concerning wager transactions and ADWP customers shall be considered proprietary and shall not be disclosed publicly, except as may be required by law. This information may be shared for multi-jurisdiction investigative purposes. An ADWP shall report to the Department any known or suspected rule violations by any person involving ADWP and cooperate in any subsequent investigations.

H. An ADWP shall detail each method used for placing wagers through the ADW system and specify what information and place of recording constitutes proof of a wager placed through each wagering method.

I. An ADWP shall give access to the Department, or its designee, for review and audit of all records. The ADWP or applicant shall make the required information available at the ADWP's location during business hours. The Department may require an ADWP to submit an annual audited financial statement.

J. The Department may conduct investigations and inspections or request additional information from an ADWP or applicant if required to determine whether to approve an application.

History

• Adopted effective April 3, 1984 (Supp. 84-2). Amended paragraphs (16) and (17) effective August 21, 1985 (Supp. 85-4). Repealed effective December 14, 1994 (Supp. 94-4). R19-2-403 recodified from R4-27-403 (Supp. 95-1). New Section adopted effective February 26, 1996, pursuant to an exemption from the rulemaking process (Supp. 96-1). Amended effective July 22, 1998, pursuant to an exemption from the rulemaking process (Supp. 98-3). Amended by exempt rulemaking at 5 A.A.R. 532, effective January 29, 1999 (Supp. 99-1). New Section made by exempt rulemaking at 20 A.A.R. 2874, effective 10/10/2014.
• Section R19-2-403 was adopted and subsequently amended under an exemption from the provisions of the Arizona Administrative Procedure Act pursuant to A.R.S. § 41-1005(A)(18). Exemption from the rulemaking process means that the agency did not submit these rules to the Secretary of State's Office for publication in the Register as proposed rules, the agency was not required to accept public comment, and the rules were not approved by either the Governor's Regulatory Review Council or the Attorney General.

Ariz. Admin. Code § R19-2-404 Application for Adwp Permit; Plan of Operation

Before operating advance deposit wagering in Arizona, a person shall submit to the Department an application for an ADWP permit and a plan of operation. The Department shall issue an ADWP permit for no more than three years. An ADWP permit shall expire when the racing permit expires. If necessary, the Department may request additional information regarding any plan of operation.

History

• Adopted effective April 3, 1984 (Supp. 84-2). Amended effective August 21, 1985 (Supp. 85-4). Repealed effective December 14, 1994 (Supp. 94-4). R19-2-404 recodified from R4-27-404 (Supp. 95-1). New Section adopted effective February 26, 1996, pursuant to an exemption from the rulemaking process (Supp. 96-1). New Section made by exempt rulemaking at 20 A.A.R. 2874, effective 10/10/2014.
• Section R19-2-404 was adopted under an exemption from the provisions of the Arizona Administrative Procedure Act pursuant to A.R.S. § 41-105(A)(18). Exemption from the rulemaking process means that the agency did not submit these rules to the Secretary of State's Office for publication in the Register as proposed rules, the agency was not required to accept public comment, and the rules were not approved by either the Governor's Regulatory Review Council or the Attorney General.

Ariz. Admin. Code § R19-2-405 Contracts and Agreements

A. A permittee who holds a permit for teletrack wagering shall submit an Application for Approval and a Plan of Operation for each additional teletrack wagering facility to the Racing Commission. The length of the permit for an additional wagering facility shall not exceed three years. The Plan of Operation shall include but not be limited to the following:

1. Feasibility and accounts. A feasibility study denoting the estimated gross revenue from the teletrack facility and the estimated costs to operate the facility. The feasibility study shall include:

a. The number of races to be displayed,

b. The types of wagering to be offered and the hours during which pari-mutuel windows will be in operation,

c. The estimated attendance at the teletrack facility,

d. The level of anticipated wagering activity,

e. The source and amount of estimated revenues from sources other than pari-mutuel wagering,

f. The cost of operating the facility,

g. The amount and source of revenues needed for financing the teletrack wagering operation,

h. Proof of financial stability and assets sufficient to cover projected costs,

i. An estimate of the total amount of anticipated revenues to be paid to the state of Arizona resulting from teletrack wagering.

2. Contracts and agreements. The following information must be submitted in relation to any groups, concessions, or contracts, whether within or outside of Arizona, which are connected with the operation of a teletrack facility, unless such information is already on record.

a. Listing and background of the management groups responsible for the operation of the facility;

b. The names of all individuals who own 10% or more of the facility;

c. Other information which, in the Director's judgment, is or may be material, such as information pertaining to financial background and persons associated with the parties to the contract.

3. Security. The measures to be employed to protect the facility, the employees, the public, and the wagering dollars.

4. Location of the teletrack wagering facility.

5. Proof that approval for use of the facility to handle pari-mutuel wagering has been given by the governing body of the city or town or by the board of supervisors, if the facility is located in an unincorporated area.

6. Building plans and specifications. Adequate provision shall be made for areas appropriate for patrons to handicap the races and the facilities shall allow reasonable access by handicapped persons.

B. Approval and amendments shall be the same as provided in R19-2-404(B) .

C. Renewal. A permittee shall apply to the Department for renewal of its additional wagering facility permits at the time it makes application to renew its Teletrack Wagering Permit. Upon receipt of a completed application, the Director may approve the:

1. Renewal of a teletrack wagering facility,

2. A permittee's application to begin operation at a teletrack wagering facility previously approved by the Racing Commission and currently used by another permittee.

D. After receiving approval from the Racing Commission, a new facility may not open for business for a period of five working days or until all licensing requirements are satisfied. Should the necessary licensing requirements be completed in less than five working days, the remaining days may be waived by the Director.

An ADWP shall submit the following information regarding any group, concession, or contract related to the ADW operation whether within or outside of Arizona:

1. Copy of all contracts to provide services, including totalisator vendor services, within or on behalf of Arizona racetrack permittees or residents;

2. Name and background of the individuals responsible for operating the ADW accounts system;

3. Other information that, in the Director's judgment, is or may be material, such as information pertaining to financial background and persons associated with the parties to the contract;

4. Security measures to be employed to protect the ADWP account maintenance and wagering facilities;

5. Security measures to be employed to protect transmission of sales transaction and pari-mutuel output data;

6. Type of data processing, communication, and transmission equipment to be used;

7. Description of all computer services and all other methods used to transmit any data or signal; and

8. Description of any alternate or backup system in case of principal system failure of communications or data-processing equipment used for forwarding wagers.

History

• Adopted effective April 3, 1984 (Supp. 84-2). Amended effective August 21, 1985 (Supp. 85-4). Repealed effective December 14, 1994 (Supp. 94-4). R19-2-405 recodified from R4-27-405 (Supp. 95-1). New Section adopted effective February 26, 1996, pursuant to an exemption from the rulemaking process (Supp. 96-1). New Section made by exempt rulemaking at 20 A.A.R. 2874, effective 10/10/2014.
• Section R19-2-405 was adopted under an exemption from the provisions of the Arizona Administrative Procedure Act pursuant to A.R.S. § 41-105(A)(18). Exemption from the rulemaking process means that the agency did not submit these rules to the Secretary of State's Office for publication in the Register as proposed rules, the agency was not required to accept public comment, and the rules were not approved by either the Governor's Regulatory Review Council or the Attorney General.

Ariz. Admin. Code § R19-2-406 Plan of Operation Approval and Amendments

After a permit has been granted by the Commission but prior to beginning operation, if the applicant is required to utilize encoding and decoding systems, applicant will submit the following to the Director:

1. A description of the coding system used for any authorized encoding and decoding systems;

2. Number and manufacturer of any encoders and decoders;

3. Serial numbers of all encoders and decoders, updated monthly;

4. Number and location of decoders, updated monthly.

An ADWP shall conduct an ADW operation only according to the provisions of an approved plan of operation. The ADWP shall obtain the Director's written approval for any change to the plan of operation. The ADWP shall:

1. Notify the Department of any anticipated change in the plan of operation,

2. Report to the Department any change in ownership or management groups,

Provide the Department with a copy of all new contracts or amendments to existing ones, and

4. Request the approval of the Director for any change in technology used to transmit sales transaction data.

History

• Adopted effective April 3, 1984 (Supp. 84-2). Amended effective August 21, 1985 (Supp. 85-4). Repealed effective December 14, 1994 (Supp. 94-4). R19-2-406 recodified from R4-27-406 (Supp. 95-1). New Section adopted effective February 26, 1996, pursuant to an exemption from the rulemaking process (Supp. 96-1). New Section made by exempt rulemaking at 20 A.A.R. 2874, effective 10/10/2014.
• Section R19-2-406 was adopted under an exemption from the provisions of the Arizona Administrative Procedure Act pursuant to A.R.S. § 41-105(A)(18). Exemption from the rulemaking process means that the agency did not submit these rules to the Secretary of State's Office for publication in the Register as proposed rules, the agency was not required to accept public comment, and the rules were not approved by either the Governor's Regulatory Review Council or the Attorney General.

Ariz. Admin. Code § R19-2-407 Adwp Permit Renewal

A. Only persons authorized in writing by the Director will have access to the encoder and decoder. An updated list of the location of all decoders, controlled by the sending track or its designee, capable of obtaining the race signal of Arizona racetracks, shall be provided to the Department every 30 days.

B. Decoder authorization codes shall be changed more often than every 30 days and changes may be required more often by the Director.

C. The sending track or its licensed designee (who must be approved by the Director) will be the sole controller of the codes.

A permittee shall apply to the Department for renewal of its ADWP permit before the permit expires. The application for renewal shall provide the information required on a form available from the Department.

History

• Adopted effective April 3, 1984 (Supp. 84-2). Repealed effective December 14, 1994 (Supp. 94-4). R19-2-407 recodified from R4-27-407 (Supp. 95-1). New Section adopted effective February 26, 1996, pursuant to an exemption from the rulemaking process (Supp. 96-1). New Section made by exempt rulemaking at 20 A.A.R. 2874, effective 10/10/2014.
• Section R19-2-407 was adopted under an exemption from the provisions of the Arizona Administrative Procedure Act pursuant to A.R.S. § 41-105(A)(18). Exemption from the rulemaking process means that the agency did not submit these rules to the Secretary of State's Office for publication in the Register as proposed rules, the agency was not required to accept public comment, and the rules were not approved by either the Governor's Regulatory Review Council or the Attorney General.

Ariz. Admin. Code § R19-2-408 Adwp Licensing

A. The following individuals shall be licensed as required by the Department:

1. An individual with at least 10 percent ownership interest in the ADW; and

2. All ADWP employees working in Arizona.

B. An ADWP shall ensure that all ADWP employees working in another jurisdiction are licensed as required by that jurisdiction.

History

• Adopted effective April 3, 1984 (Supp. 84-2). Repealed effective December 14, 1994 (Supp. 94-4). R19-2-408 recodified from R4-27-408 (Supp. 95-1). New Section adopted effective February 26, 1996, pursuant to an exemption from the rulemaking process (Supp. 96-1). New Section made by exempt rulemaking at 20 A.A.R. 2874, effective 10/10/2014.
• Section R19-2-408 was adopted under an exemption from the provisions of the Arizona Administrative Procedure Act pursuant to A.R.S. § 41-105(A)(18). Exemption from the rulemaking process means that the agency did not submit these rules to the Secretary of State's Office for publication in the Register as proposed rules, the agency was not required to accept public comment, and the rules were not approved by either the Governor's Regulatory Review Council or the Attorney General.

Ariz. Admin. Code § R19-2-409 Adw - Racetrack Permittee Contracts

A. An ADWP that accept accounts from Arizona residents shall obtain and maintain a contract with one or more Arizona racetrack permittees. The ADWP shall ensure that the contract includes:

1. Disclosure of Regulatory Wagering Assessments (RWA) assignment of responsibility for payment of:

a. The assessment on wagers placed by Arizona account holders on races conducted in Arizona, which will be considered to be live, in-state, off-track wagers; and

b. The assessment on wagers placed by Arizona account holders on races conducted outside of Arizona, which will be considered to be simulcast, in-state, off-track wagers;

2. Disclosure of all ADWs wagering on any races run in this jurisdiction, and all ADWs wagering on races run in other jurisdictions that would be available for wagering in this jurisdiction under the contract;

3. Certification of ADW licensing, authorization, or approval by the recognized pari-mutuel authority in the other jurisdiction;

4. Disclosure of all fees, market share revenue, and distribution details and other financial considerations relating to the contract and any other non-contracted Arizona racetrack permittees;

5. Certification of prompt access for the Department, in print or electronic form acceptable to the Department, to:

a. Reports, logs, wagering transaction detail, and customer account detail;

b. Records relating to customer identify, age, and residency;

c. Records of customer account detail for individuals:

i. In any jurisdiction who place wagers on races conducted in this jurisdiction and races available for wagering by individuals in this jurisdiction;

ii. The Department has reason to investigate based on possible placing of wagers for individuals other than the account holder; and

iii. Determined by the Department to be relevant to an investigation by the Department;

A detailed description and certification of systems and procedures used to validate the identity, age, and jurisdiction of legal residence of account holders and to validate the legality of wagers accepted;

7. Certification of secure retention of and prompt Department access to all records related to wagering and customers' accounts, including deposits, withdrawals, wagers, and winning payouts for at least three years or a longer period specified by the Department; and

B. An ADWP shall attach the following to all contracts under this subsection:

1. A certified copy of rules governing the acceptance and management of accounts, and

2. A certified copy of any change in the rules provided at least thirty days before the change takes effect.

History

• Adopted effective April 3, 1984 (Supp. 84-2). Repealed effective December 14, 1994 (Supp. 94-4). R19-2-409 recodified from R4-27-409 (Supp. 95-1). New Section adopted effective February 26, 1996, pursuant to an exemption from the rulemaking process (Supp. 96-1). New Section made by exempt rulemaking at 20 A.A.R. 2874, effective 10/10/2014.
• Section R19-2-409 was adopted under an exemption from the provisions of the Arizona Administrative Procedure Act pursuant to A.R.S. § 41-105(A)(18). Exemption from the rulemaking process means that the agency did not submit these rules to the Secretary of State's Office for publication in the Register as proposed rules, the agency was not required to accept public comment, and the rules were not approved by either the Governor's Regulatory Review Council or the Attorney General.

Ariz. Admin. Code § R19-2-410 ADW Accounts

A. An individual who wishes to establish an ADW account shall establish the account in person or by mail, telephone, or other electronic means before making any wager. The individual establishing an ADW account shall:

1. Establish the account in the individual's name,

2. Be at least 21 years old, and

3. Not be prohibited from wagering by Arizona rules or statutes.

B. An ADW account is not transferable.

C. An ADWP shall obtain the following regarding an individual who wishes to establish an ADW account:

1. Full legal name;

2. Address of principal residence;

3. Address to which communications are to be delivered if different from the principal residence address;

4. Telephone number;

5. Social Security number;

6. Copy of evidence that the individual is at least 21 years old; and

7. Whether the individual will make ADW deposits through the use of cash, personal check, credit or debit card, or electronic funds transfers.

D. An ADWP shall electronically verify an ADW-account applicant's name, principal residence address, date of birth, and Social Security number at the time application is made using a Department-approved national, independent, individual reference company or other independent technology approved by the Department.

E. An ADWP may refuse to establish an ADW account if it determines that any of the information supplied is untrue or incomplete and may at any other time, with reasonable cause, refuse to accept a wager or deposit.

F. An ADWP shall designate each ADW account with a unique account number. The ADWP may change an ADW account number if the ADWP provides notice to the account holder before the change is made.

G. An ADWP shall ensure that an ADW-account holder is able to access the account holder's account by means of personal identification or account password.

H. When an ADW account is established, the ADWP shall:

1. Inform the account holder of the assigned account number; and

Provide the account holder a copy of the ADWP's advance deposit wagering procedures, terms and conditions and other information pertaining to the operation of the ADW account including any rules the ADWP has made concerning deposits, withdrawals, average daily balance, user fees (including for EFT deposits), interest payments, and any other aspect of the operation of the account.

I. An ADWP shall notify an account holder before making any change to the rules governing the account and provide an opportunity for the account holder to close or cash-in the account. The ADWP may deem an account holder to have accepted the rules of account operation when the account holder opens or does not close the account.

J. An ADWP shall comply with Internal Revenue Service (IRS) requirements for reporting and withholding proceeds from advance deposit wagers by account holders. The ADWP shall send an account holder subject to IRS reporting or withholding a form W2-G summarizing the information for tax purposes following a winning wager being deposited into the account holder's account. Upon written request, the ADWP shall provide an account holder with summarized tax information on advance deposit wagering activities.

K. An account holder is deemed to be aware of the status of the account holder's account at all times. An ADWP shall not accept a wager that exceeds the available balance of an account. An account not updated when a transaction is completed shall be inoperable until the account balance is updated and the transaction is posted.

L. When an ADW account is entitled to a payout or refund, the ADWP shall credit the monies to the account. This will increase the balance in the account. The account holder shall verify that proper credits have been made and, if in doubt, notify the ADWP within the agreed upon time for consideration. The ADWP or the account holder may forward an unresolved dispute to the Department. The Department shall not consider a dispute unless it is submitted in writing and accompanied by supporting evidence.

M. Account Operation

1. An ADWP shall maintain complete records of every deposit, withdrawal, wager, and winning payout for each ADW account. The ADWP shall make these records available to the Department promptly upon request and retain the records for the time required under R19-2-502(A).

2. An ADWP may allow an ADW account holder to make wagers on racing meetings or simulcasted races from the account by telephone, in person, or over the internet through websites and on mobile devices, as authorized under A.R.S. § 5-1314(B). Additionally, only Arizona racetracks or additional wagering facilities granted permits by the Racing Division may be licensed as Limited Event Wagering Operators in compliance with A.R.S. Title 5, Chapter 11 and A.A.C. Title 19, Chapter 4, Article 1.

3. Placing or accepting wagers on racing meetings or simulcasted races over the communications facility known as the Internet is authorized to the extent that such activity complies with A.R.S. § 5-1314(B). Transmittal of handicapping data, race results, or other information relating to pari-mutuel wagering over the Internet is permitted.

4. An ADWP shall ensure that the ADW system provides for the account holder to review and finalize a wager before the wager is accepted by the ADW system. Neither the account holder nor the ADWP shall change a wager after the account holder has reviewed and finalized the wager except as allowed under R19-2-504(C).

N. An ADWP may close an ADW account when the account holder attempts to operate with an insufficient balance or when the account is dormant for a period approved by the Department. When an ADWP closes an ADW account, the ADWP shall refund the remaining account balance to the account holder.

History

• Adopted effective April 3, 1984 (Supp. 84-2). Repealed effective December 14, 1994 (Supp. 94-4). R19-2-410 recodified from R4-27-410 (Supp. 95-1). New Section adopted effective February 26, 1996, pursuant to an exemption from the rulemaking process (Supp. 96-1). New Section made by exempt rulemaking at 20 A.A.R. 2874, effective 10/10/2014. Amended by exempt rulemaking at 27 A.A.R. 1437, effective 8/20/2021.
• Section R19-2-410 was adopted under an exemption from the provisions of the Arizona Administrative Procedure Act pursuant to A.R.S. § 41-105(A)(18). Exemption from the rulemaking process means that the agency did not submit these rules to the Secretary of State's Office for publication in the Register as proposed rules, the agency was not required to accept public comment, and the rules were not approved by either the Governor's Regulatory Review Council or the Attorney General.

Ariz. Admin. Code § R19-2-411 Advance Deposit Wagering

A. All Department rules governing pari-mutuel wagering govern advance deposit wagering. Advance deposit monies wagered are part of the pool of the sending track.

B. An ADWP shall maintain sales transaction data from the ADWP to each host track as a separate account for audit purposes.

C. An ADWP shall make sales transactions using currently approved technology.

D. An ADWP shall pay to the Department an advance deposit wagering assessment of 0.6 percent from the gross revenues generated by advance deposit wagering.

History

• New Section made by exempt rulemaking at 20 A.A.R. 2874, effective 10/10/2014.

Ariz. Admin. Code § R19-2-412 Teletrack Wagering

A. All applicable Department rules governing pari-mutuel wagering are incorporated by reference as also governing teletrack wagering. Teletrack monies wagered shall be made a part of the pool of the sending track.

B. Sales transaction data from a teletrack facility to the sending track must be maintained as a separate account for audit purposes.

C. Sales transaction data shall, by the use of currently approved technology, be transmitted separately from pari-mutuel data and the visual display of the races.

D. In case of interruption of transmission of sales transaction or pari-mutuel output data to or from the teletrack facility, the designated representative of the Department may require that the amount of wagers which have been accepted be deducted from the sending track pool, the odds recalculated, and those monies bet at the teletrack facility refunded, taking into consideration time, the extent of the breakdown, and the amount of monies wagered.

A. All Department rules governing pari-mutuel wagering govern teletrack wagering. Teletrack monies wagered are part of the pool of the sending track for reporting purposes.

B. An ADWP shall maintain sales transaction data from a teletrack facility to the sending track as a separate account for audit purposes.

C. An ADWP shall make sales transaction data using currently approved technology and transmit the data separately from pari-mutuel data and the visual display of races.

D. If there is an interruption of transmission of sales transaction or pari-mutuel output data to or from the teletrack facility, the designated representative of the Department may require that the amount of wagers that have been accepted be deducted from the sending track pool, the odds recalculated, and monies bet at the teletrack facility refunded, taking into consideration time, the extent of the breakdown, and the amount of monies wagered.

History

• Renumbered by exempt rulemaking at 20 A.A.R. 2874, effective 10/10/2014.

Ariz. Admin. Code § R19-2-413 General Provisions Regarding Teletrack Facilities

A. At the Director's discretion, a Department representative may be present during all operating hours at a teletrack facility.

B. A teletrack wagering permittee shall, during all operating hours, have back-up or replacement tote equipment available so the down time in the event of equipment failure does not exceed 60 minutes. At teletrack sites with multiple teller equipment installed, back-up equipment may consist of the remaining operating teller machines if the remaining teller machines are sufficient to handle the reasonably anticipated volume of sales transactions without unreasonable delays or inconvenience to patrons.

C. During a racing program, the teletrack wagering permittee shall report any problems or delays to the public.

D. A teletrack wagering permittee shall ensure that security measures are adequate to control disturbances.

E. A teletrack wagering permittee shall ensure that communications between the sending track and teletrack facility occur without delay. In a tote-to-tote situation, if the data transmission link between the tote systems fails, the teletrack wagering permittee shall decide the policy for paying off or refunding pari-mutuel tickets and all other communication failures at the teletrack site.

F. A teletrack wagering permittee shall make photo finish pictures of the previous day's live races available for viewing upon request within 48 hours.

G. If a video display of any portion of a racing program is provided at a teletrack location, the video display shall include the following, if possible:

1. All wagering information including pool totals, will pays, or odds as offered to the general public at the permittee racetrack location;

2. Each race shown live, as it is run or received at the permittee premises;

3. Race results;

4. Prices or payoff;

5. Minutes to post; and

6. The race number and track for which the above information is displayed.

H. A teletrack wagering permittee shall make Arizona pari-mutuel rules available in the wagering area. This requirement may be met by publishing the Department's rules-page web address in the racing program and on the permittee's web site.

I. A teletrack wagering permittee shall make the results of each race, and the winnings from each race, available from tellers or results-posting terminals as soon as possible at each teletrack facility and shall make the results available to the wagering public for 24 hours on the race day following the day of the race.

J. A teletrack wagering permittee shall report to the Department any violation or suspected violation of law that occurs on or about the premises of the teletrack facility.

K. A teletrack wagering permittee shall make daily handle and attendance reports for each teletrack facility as prescribed by the Department.

L. Betting period:

1. A teletrack wagering permittee shall conduct wagering only during periods approved by the Director or Commission in respect to any race, racing card, pool, or feature pool.

2. The Director may prescribe the closing time for pari-mutuel equipment at each facility based on the level of sophistication of the pari-mutuel equipment and transmission equipment.

M. A teletrack wagering permittee shall obtain the Director's written approval of the method used to transmit sales transaction and pari-mutuel output data. The Director shall base approval on determination that provisions to secure the system and transmissions are satisfactory.

N. A teletrack wagering permittee shall provide computer reports pertaining to pari-mutuel activity as required by the Director.

History

• New Section made by exempt rulemaking at 20 A.A.R. 2874, effective 10/10/2014.

Ariz. Admin. Code § R19-2-414 Application for Original Teletrack Wagering Permit; Plan of Operation; Renewals of Teletrack Wagering Permit

An applicant must submit an Application for a Teletrack Wagering permit and a Plan of Operation to the Commissionbefore the Commission may grant a teletrack wagering permit. The length of the permit shall not exceed three years. ThePlan of Operation shall include but not be limited to the following:

1. Feasibility and accounts. A feasibility study denoting the estimated gross revenue from the teletrack wagering operation and the estimated costs to operate. The feasibility study shall include:

a. The number of races to be displayed,

b. The types of wagering to be offered and hours during which pari-mutuel windows will be in operation,

c. The estimated attendance at all additional wagering facilities,

d. The level of anticipated wagering activity,

e. The source and amount of estimated revenues other than pari-mutuel wagering,

f. The cost of operating the teletrack wagering system,

g. The amount and source of revenues needed for financing the teletrack wagering operation,

h Proof of financial stability and assets sufficient to cover projected costs,

i. An estimate of the total amount of anticipated revenues to be paid to the state of Arizona resulting from teletrack wagering operations.

2. Proof of compliance with applicable FCC regulations, and applicable FCC licensing requirements.

3. Contracts and agreements. The following information must be submitted in relation to any groups, concessions, orcontracts whether within or outside of Arizona which are related to the teletrack wagering operation unless such information is already on record with the Department as part of the permittee's original application to operate racing meet:

a. Copy of all contracts to provide service within Arizona;

b. Names and background of the individuals responsible for operating the teletrack wagering system;

c. Copies of proposed agreements for the transmission of audio-visual signals of racing events and transmission of sales transaction and pari-mutuel output data;

d. Other information which, in the Director's judgment, is or may be material, such as information pertaining to financial background and persons associated with the parties to the contract.

4. Security.

a. The security measures to be employed to protect the teletrack wagering facilities,

b. The security measures to be employed to protect the public,

c. The security measures to be employed to prevent the interception of audio and video signal transmission of races,

d. The security measures to be employed to protect transmission of sales transaction and pari-mutuel output data.

5. Equipment, communication, and transmission.

a. The type of data processing, communication, and transmission equipment to be utilized;

b. A description of all computer services and all other methods utilized for the transmission of any data or signal;

c. A description of any alternate or backup system in case of principal system failure of communications or data-processing equipment used for forwarding wagers;

d. Identification of satellite, if applicable;

e. Additional information which may be required, at the discretion of the Director, such as the names, addresses, and phone numbers of all individuals who will be involved in the delivery of the signal.

B. Approval and amendments. A permittee shall conduct a teletrack wagering operation only according to the provisions of an approved Plan of Operation. Any change to the Plan of Operation will be allowed only when approved in writing by the Director. A permittee shall:

1. Report to the Department any changes in ownership/management groups,

2. Provide to the Department new contracts or amendments to existing ones,

3. Request the approval of the Director for any change in technology used to transmit sales transaction data,

4. Notify the Department of any change in the Plan of Operation.

C. Renewal. A permittee shall apply to the Racing Commission for renewal of its teletrack wagering permit at the time it makes application for a permit to operate a racing meet. The application for renewal shall provide the information required in subsections (A)(1) through (5) above.

A. An applicant for a teletrack wagering permit shall submit an application and plan of operation to the Commission. The Commission shall issue a teletrack wagering permit for no more than three years.

B. An applicant shall include the following in the plan of operation:

1. A feasibility study that estimates both gross revenue from the teletrack wagering operation and costs to operate. The feasibility study shall include:

a. Types of wagering to be offered and hours during which pari-mutuel windows will be in operation,

b. Estimated attendance at all additional wagering facilities,

c. Level of anticipated wagering activity,

d. Source and amount of estimated revenues other than pari-mutuel wagering,

e. Cost of operating the teletrack wagering system,

f. Amount and source of revenues needed for financing the teletrack wagering operation,

g. Proof of financial stability and assets sufficient to cover projected costs, and

h. Estimate of the total amount of anticipated revenues to be paid to the state resulting from teletrack wagering operations;

2. The following information regarding any group, concession, or contract related to the teletrack wagering operation whether within or outside of Arizona unless the information is already on record with the Department as part of the applicant's original application to operate a racing meet:

a. Copy of all contracts to provide service within Arizona;

b. Name and background of the individuals responsible for operating the teletrack wagering system;

c. Copies of proposed agreements for any transmission of audio-visual signals of racing events and the transmission of sales transaction and pari-mutuel output data; and

d. Other information that, in the Director's judgment, is or may be material, such as information pertaining to financial background and persons associated with the parties to the contract;

3. The following information regarding security:

a. Security measures to be employed to protect the teletrack wagering facilities,

b. Security measures to be employed to protect the public, and

c. Security measures to be employed to protect transmission of sales transaction and pari-mutuel output data; and

4. The following information regarding equipment, communication, and transmission:

a. Type of data processing, communication, and transmission equipment to be used;

b. Description of all computer services and all other methods used to transmit any data or signal; and

c. Description of any alternate or backup system in case of principal system failure of communications or data-processing equipment used for forwarding wagers.

C. Approval and amendments. A teletrack wagering permittee shall conduct a teletrack wagering operation only according to the provisions of an approved plan of operation. The teletrack wagering permittee shall obtain the Director's written approval for any change to the plan of operation. The teletrack wagering permittee shall:

1. Notify the Department of any anticipated change in the plan of operation;

Report to the Department any changes in ownership or management groups,

3. Provide the Department with a copy of all new contracts or amendments to existing ones, and

4. Request the approval of the Director for any change in technology used to transmit sales transaction data.

D. Renewal. A teletrack wagering permittee shall apply to the Commission for renewal of its teletrack wagering permit at the time the permittee makes application for a permit to operate a racing meet. The teletrack wagering permittee shall include in the renewal application the information required in subsections (B)(1) through (4).

History

• Renumbered by exempt rulemaking at 20 A.A.R. 2874, effective 10/10/2014.

Ariz. Admin. Code § R19-2-415 Approval of Additional Wagering Facilities; Plan of Operation; Renewal or Approval of Additional Wagering Facilities

A. A teletrack wagering permittee shall request approval from and submit a plan of operation to the Commission for each additional teletrack wagering facility. The Commission shall issue a permit for an additional wagering facility for no more than three years.

B. The teletrack wagering permittee shall include the following in the plan of operation regarding the additional teletrack wagering facility:

1. A feasibility study that estimates both gross revenue from the teletrack facility and estimated costs to operate the facility. The feasibility study shall include:

a. Types of wagering to be offered and the hours during which pari-mutuel windows will be in operation,

b. Level of anticipated wagering activity,

c. Source and amount of revenues needed for financing the teletrack wagering operation,

d. Proof of financial stability and assets sufficient to cover projected costs, and

e. Estimate of the total amount of anticipated revenues to be paid to the state resulting from teletrack wagering operations;

2. The following information regarding any group, concession, or contract related to the teletrack wagering operation whether within or outside of Arizona unless the information is already on record with the Department:

a. Listing and background of the management groups responsible for operation of the facility;

b. Name of all individuals who own at least 10 percent of the facility; and

c. Other information that, in the Director's judgment, is or may be material, such as information pertaining to financial background and persons associated with the parties to the contract;

3. Measures to be employed by the teletrack wagering permittee to protect the facility, employees, public, and wagering dollars;

4. Location of the teletrack wagering facility;

Proof that approval for use of the facility to handle pari-mutuel wagering has been given by the governing body of the city or town or by the board of supervisors, if the facility is located in an unincorporated area; and

6. Building plans and specifications that demonstrate sufficient area for patrons to handicap the races and reasonable access by individuals with a disability.

C. Approval and amendments. The requirements in R19-2-414(C) apply.

D. Renewal. When a teletrack wagering permittee makes application to renew the teletrack wagering permit, the permittee shall provide the Department a list of its existing additional teletrack wagering facilities. When the Director approves renewal of the teletrack wagering permit, the Director may approve:

1. Renewal of the existing additional teletrack wagering facilities, and

2. The permittee's application to begin operation at a teletrack wagering facility previously approved by the Commission and currently used by another permittee.

E. After the Commission approves an additional teletrack wagering facility, the permittee shall not open the additional facility for business for five working days or until all licensing requirements are satisfied. If the necessary licensing requirements are completed in less than five working days, the Director may waive the remaining days.

History

• New Section made by exempt rulemaking at 20 A.A.R. 2874, effective 10/10/2014.

Ariz. Admin. Code § R19-2-416 Suspension of Teletrack Permit

A. The Director or the Director's designee may suspend any permit authorizing the operation of teletrack wagering or may suspend any permit to operate an additional wagering facility granted to a permittee if such permittee fails to conduct operations in accordance with the provisions of the applicable Plan of Operation, the applicable rules, or directives, or statutes.

B. If the Director finds that the public health, safety, or welfare imperatively requires emergency action, the Director may order summary suspension of a teletrack wagering permit or may order summary suspension of any permit authorizing operation of an additional wagering facility, pending a hearing.

A. The Director or the Director's designee may suspend a teletrack wagering permit or a permit to operate an additional tele-track wagering facility if the permittee fails to conduct operations in accordance with the provisions of the approved plan of operation, A.R.S. Title 5, Chapter 1, this Chapter, or directives from the Director.

B. If the Director finds that the public health, safety, or welfare imperatively requires emergency action, the Director shall order summary suspension of a teletrack wagering permit or any permit authorizing operation of an additional teletrack wagering facility, pending a hearing.

History

• Renumbered by exempt rulemaking at 20 A.A.R. 2874, effective 10/10/2014.

Ariz. Admin. Code § R19-2-417 Licensing of Employees at Teletrack Facilities

A. A teletrack wagering facility shall not participate in teletrack wagering unless all individuals required to be licensed in subsection (B) have been licensed.

B. The following individuals shall be licensed by the Department prior to participating in teletrack wagering:

1. All persons employed at any teletrack facility by any permittee,

2. All persons who own 10% or more in a teletrack facility leased be a permittee,

3. Any individual employed by the facility who has responsibility as manager of the facility during operating (racing) hours,

4. Any other person designated by the Director.

A. A teletrack wagering permittee shall ensure that no teletrack wagering occurs at a teletrack facility until all individuals required to be licensed under subsection (B) have been licensed.

B. A teletrack wagering permittee shall ensure that the following individuals are licensed by the Department before participating in teletrack wagering and as circumstances or personnel change during the course of the teletrack permit period:

1. All individuals employed by the permittee at any teletrack wagering facility,

2. All persons who own at least 10 percent of a teletrack wagering facility leased by the permittee,

3. Any individual employed by the teletrack wagering facility who has responsibility as manager of the facility during operating (racing) hours, and

Any other person designated by the Director.

History

• Renumbered by exempt rulemaking at 20 A.A.R. 2874, effective 10/10/2014.

Ariz. Admin. Code § R19-2-418 Directives

Notwithstanding anything contained in this Article, decisions on matters concerning teletrack wagering facility operations may be made by the Director, within the scope of the Director's statutory authority. The Director's decisions shall be effective immediately upon written notification.

History

• Renumbered by exempt rulemaking at 20 A.A.R. 2874, effective 10/10/2014.

Ariz. Admin. Code § R19-2-419 Simulcast Wagering

A. The Department may authorize a racetrack permittee to conduct simulcasting as defined in A.R.S. § 5-101 and authorized under A.R.S. § 5-112 and the Interstate Horse Racing Act of 1978.

B. A racetrack permittee that wishes to conduct simulcasting shall submit a request for sending or receiving of simulcasts in writing to the Director of the Department.

C. For initial approval of horse simulcasts, the Department requires the following:

1. A completed simulcast agreement between a racetrack permittee and out-of-state entity;

2. Written approval of the out-of-state horsemen's group, if applicable;

3. Written approval of the out-of-state racing commission; and

4. Written approval of the local horsemen's group. For purposes of this Section, horsemen's group is the group that represents a majority of the horsemen racing at or contracted with the racetrack permittee.

D. For initial approval of greyhound simulcasts, the Department requires the following:

1. A completed simulcast agreement between a racetrack permittee and out-of-state entity, and

2. Written approval of the out-of-state racing commission.

E. Withdrawal of any of the written approvals required under subsections (C) and (D) constitutes grounds for the Department to rescind authorization for simulcasting.

F. To renew approval for simulcasting, a racetrack permittee shall submit any changes to the previous contract or addendums and current signature pages. Alternatively, and at the Department's option, the Department may accept an updated list of simulcast import host signals to be received and export guest wagering locations to be hosted by the Arizona racetrack permittee.

G. Additional wagering facilities.

1. A racetrack permittee may conduct simulcasting at the racetrack enclosure and at any additional wagering facility operated by the racetrack permittee if the additional wagering facility is included in the simulcast agreement.

2. A racetrack permittee may send its simulcast signal to an out-of-state racetrack enclosure and any additional wagering facilities operated or used by the out-of-state entity if all locations receiving the simulcast signal are included in the simulcast agreement.

H. Duties of Arizona sending racetrack permittee.

1. If video is to be transmitted, the sending racetrack permittee is responsible for the content of the simulcast video program and shall use all reasonable effort to present a simulcast that offers viewers an exemplary depiction of each performance.

2. Unless otherwise permitted by the Department, every sent simulcast video program shall contain in its video content a digital signal of actual time of day, the name of the host facility from which the signal emanates, the number of the contest being displayed, minutes to post, and any other relevant information available to patrons at the sending facility.

I. Duties of Arizona receiving racetrack permittee.

1. A receiving racetrack permittee conducting a commercial racing meet in this state may, with approval of the Department, conduct and operate a pari-mutuel wagering system on the results of contests being held or conducted and simulcast from the enclosures of one or more sending racetrack permittees outside this state.

2. A receiving racetrack permittee shall provide:

a. If video will be displayed, adequate receiving equipment of acceptable broadcast quality for providing any sending-facility patron information;

b. Pari-mutuel terminals, pari-mutuel odds displays, modems, and switching units enabling pari-mutuel data transmissions and data communications between the sending and receiving racetrack permittees; and

c. In the case of separate pool simulcasting, a voice communication system between the receiving racetrack permittee and the sending racetrack permittee providing timely voice contact among Department designees, placing judges, and pari-mutuel departments.

3. A receiving racetrack permittee shall conduct pari-mutuel wagering in compliance with this Chapter.

4. The Department may appoint at least one designee to supervise all approved simulcast facilities and may require additional designees as is reasonably necessary to protect the public interest.

J. In accordance with R19-2-505, a racetrack permittee may make a written request to the Director for authorization to conduct advance performance wagering.

History

• New Section made by exempt rulemaking at 20 A.A.R. 2874, effective 10/10/2014.

Ariz. Admin. Code § R19-2-420 Interstate Common Pool Wagering

A. General provisions.

1. All contracts governing participation by a racetrack permittee in interstate common pools shall be submitted to the Department. All parties to the contracts shall certify to the other parties that each will provide the others or their regulatory bodies full and prompt access to necessary requested records.

2. Individual wagering transactions are made at the point of sale in the state where placed. Pari-mutuel pools are combined solely for computing odds and calculating payoffs but will be held separate for auditing and all other purposes.

3. The content and format of the visual display of racing and wagering information at facilities in other jurisdictions where wagering is permitted in the interstate common pool need not be identical to the information permitted or required to be displayed under these rules.

4. A racetrack permittee may participate in common pool wagering only on the same type of racing as authorized by the permit for live racing conducted by the racetrack permittee.

B. Participation in interstate common pools by receiving racetrack permittee.

1. With prior approval of the Department, pari-mutuel wagering pools may be combined with corresponding wagering pools at the sending facility outside of this state.

2. The Department may permit adjustment of the takeout from the pari-mutuel pool so the takeout rate in this jurisdiction is identical to that at the sending track (within the limits permitted by state law).

3. Where takeout rates in the merged pool are not identical, the net price calculation shall be the method by which the differing takeout rates are applied.

4. Rules of racing established for the contest in the sending track apply to the merged pool.

5. If, for any reason, it becomes impossible to merge successfully the bets placed into the interstate common pool, the racetrack permittee shall declare the accepted bets void and make refunds in accordance with applicable rules except that, with permission of the Department, the racetrack permittee may determine to make payoffs in accordance with payoff prices that would have been in effect if prices for the pool of bets were calculated without regard to wagers placed elsewhere or pay winning tickets at the payoff prices at the sending track. The permittee shall publish the chosen policy under this subsection in the daily racing program and on the permittee's web site and post the policy in all wagering locations.

C. Participation in merged pools by sending racetrack permittee.

1. With prior approval of the Department, a racetrack permittee conducting a live race meet and pari-mutuel wagering may determine that all or part of the racing program be used for pari-mutuel wagering by sending all or part of the racing program to facilities outside this state and may also determine that pari-mutuel pools at the out-of-state facilities be combined with corresponding wagering pools established by the permittee as the sending track.

2. This Chapter applies to interstate common pools unless the Department specifically determines otherwise.

3. A racetrack permittee shall ensure that any contract for interstate common pools entered contains a provision providing that if, for any reason, it becomes impossible to merge successfully the bets placed in another state into the interstate common pool formed by the racetrack permittee or if, for any reason, the Department's or the racetrack permittee's representative determines that attempting to effect transfer of pool data from the receiving facility may endanger the racetrack permittee's wagering pool, the racetrack permittee has no liability for any measures taken that may result in the receiving facility's wagers not being accepted into the pool.

4. Amounts wagered in an interstate common pool other than amounts wagered within this state are not considered part of the racetrack permittee's pari-mutuel wagering pool for purposes of A.R.S. § 5-111. A racetrack permittee may charge a fee to a receiving facility or location outside this state for the privilege of conducting pari-mutuel wagering on a race and participating in the interstate common pool and for payment of costs incurred to transmit the broadcast of the race.

D. Takeout rates in interstate common pools. With prior approval of the Department, a racetrack permittee wishing to participate in an interstate common pool may change its takeout rate (within the limits permitted by state law) to achieve a common pool takeout rate with all other participants in the interstate common pool.

History

• New Section made by exempt rulemaking at 20 A.A.R. 2874, effective 10/10/2014.

Article 5 PARI-MUTUEL WAGERING

Ariz. Admin. Code § R19-2-501 General

Each permittee shall conduct wagering in accordance with applicable laws and these rules. Such wagering shall employ a pari-mutuel system approved by the Department. The totalisator shall be tested prior to and during the meeting as required by the Department.

History

• Adopted effective October 21, 1993, under an exemption from the Administrative Procedure Act pursuant to A.R.S. § 41-1005(A)(18) (Supp. 93-4). R19-2-501 recodified from R4-27-501 (Supp. 95-1).
• The following Section was adopted under an exemption from the provisions of the Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to A.R.S. § 41-1005(A)(18). Exemption from A.R.S. Title 41, Chapter 6 means that the Arizona Racing Commission did not submit these rules to the Governor's Regulatory Review Council for Review; the Commission did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register; the Commission was not required to hold public hearings on these rules; and the Attorney General did not certify these rules.

Ariz. Admin. Code § R19-2-502 Records

A. The permittee shall maintain records of all wagering for one year from the end of the racing meet or end of the racetrack's fiscal year, the same term for which outs tickets are valid, so the Department may review the records for any contest. Wagering records maintained shall include the opening line, subsequent odds fluctuation, the amount and at which window wagers were placed on any betting, interest, and other information as may be required. The wagering records shall be retained by each permittee and safeguarded for the period specified by the Department. The Department may require that certain records be made available to the wagering public at the completion of each contest.

B. The permittee shall provide the Department with a list of the licensed individuals afforded access to pari-mutuel records and equipment at the wagering facility.

History

• Adopted effective October 21, 1993, under an exemption from the Administrative Procedure Act pursuant to A.R.S. § 41-1005(A)(18) (Supp. 93-4). R19-2-502 recodified from R4-27-502 (Supp. 95-1). Amended by exempt rulemaking at 20 A.A.R. 2874, effective 10/10/2014.
• The following Section was adopted under an exemption from the provisions of the Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to A.R.S. § 41-1005(A)(18). Exemption from A.R.S. Title 41, Chapter 6 means that the Arizona Racing Commission did not submit these rules to the Governor's Regulatory Review Council for Review; the Commission did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register; the Commission was not required to hold public hearings on these rules; and the Attorney General did not certify these rules.

Ariz. Admin. Code § R19-2-503 Pari-mutuel Tickets

A pari-mutuel ticket is evidence of a contribution to the pari-mutuel pool operated by the permittee and is evidence of the obligation of the permittee to pay to the holder thereof such portion of the distributable amount of the pari-mutuel pool as is represented by such valid pari-mutuel ticket. The permittee shall cash all valid winning tickets when such are presented for payment during the course of the meeting where sold, and for a one-year period after the last day of the meeting. Each pari-mutuel ticket purchaser agrees to abide by the terms and provisions of these rules, other applicable rules of the Arizona Racing Commission, and by the laws of the state of Arizona.

1. To be deemed a valid pari-mutuel ticket, such ticket shall have been issued by a pari-mutuel ticket machine operated by the permittee and recorded as a ticket entitled to a share of the pari-mutuel pool and contain imprinted information as to:

a. The name of the permittee operating the meeting,

b. A unique identifying number or code,

c. Identification of the terminal at which the ticket was issued,

d. A designation of the performance for which the wagering transaction was issued,

e. The contest number for which the pool is conducted,

f. The type or types of wagers represented,

g. The number or numbers representing the betting interests for which the wager is recorded,

h. The amount or amounts of the contributions to the pari-mutuel pool or pools for which the ticket is evidence.

2. No pari-mutuel ticket recorded or reported as previously paid, cancelled, or nonexistent shall be deemed a valid pari-mutuel ticket by the permittee. The permittee may withhold payment and refuse to cash any pari-mutuel ticket deemed not valid, except as provided in R19-2-504(E) of these rules.

History

• Adopted effective October 21, 1993, under an exemption from the Administrative Procedure Act pursuant to A.R.S. § 41-1005(A)(18) (Supp. 93-4). R19-2-503 recodified from R4-27-503 (Supp. 95-1).
• The following Section was adopted under an exemption from the provisions of the Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to A.R.S. § 41-1005(A)(18). Exemption from A.R.S. Title 41, Chapter 6 means that the Arizona Racing Commission did not submit these rules to the Governor's Regulatory Review Council for Review; the Commission did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register; the Commission was not required to hold public hearings on these rules; and the Attorney General did not certify these rules.

Ariz. Admin. Code § R19-2-504 Pari-mutuel Ticket Sales

A. Pari-mutuel tickets shall be sold only by a permittee licensed to conduct pari-mutuel wagering or a racetrack permittee-contracted ADWP. All tickets shall be sold as prescribed under A.R.S. §§ 5-111 and 5-112.

B. A pari-mutuel ticket may not be sold on a contest for which wagering has been closed and a permittee shall not be responsible for sales entered into but not completed by issuance of a ticket before the totalisator is closed for wagering on the contest.

C. Claims pertaining to a mistake on an issued or unissued ticket must be made by the bettor before leaving the seller's window. Cancellation or exchange of tickets issued shall not be permitted after a patron has left a seller's window except in accordance with written policies established by the racetrack permittee and approved by the Department. An ADWP shall abide by the most restrictive policy established by any of the racetrack permittees with which the ADWP contracts.

D. Payment on winning pari-mutuel wagers shall be made on the basis of the order of finish as purposely posted and declared "official." Any change in the order of finish or award of purse money that results from a subsequent ruling by the stewards or Department shall in no way affect the pari-mutuel payoff. If an error in the posted order of finish or payoff figures is discovered, the official order of finish or payoff prices may be corrected and an announcement concerning the change shall be made to the public.

E. A racetrack permittee shall not satisfy claims on lost, mutilated, or altered pari-mutuel tickets without authorization of the Department.

F. A racetrack permittee has no obligation to enter a wager into a betting pool if unable to do so due to equipment failure.

G. Pari-mutuel tickets shall neither be sold to nor purchased by anyone less than 21 years old.

History

• Adopted effective October 21, 1993, under an exemption from the Administrative Procedure Act pursuant to A.R.S. § 41-1005(A)(18) (Supp. 93-4). R19-2-504 recodified from R4-27-504 (Supp. 95-1). Amended by exempt rulemaking at 20 A.A.R. 2874, effective 10/10/2014.
• The following Section was adopted under an exemption from the provisions of the Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to A.R.S. § 41-1005(A)(18). Exemption from A.R.S. Title 41, Chapter 6 means that the Arizona Racing Commission did not submit these rules to the Governor's Regulatory Review Council for Review; the Commission did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register; the Commission was not required to hold public hearings on these rules; and the Attorney General did not certify these rules.

Ariz. Admin. Code § R19-2-505 Advance Performance Wagering

No permittee shall permit wagering to begin more than one day before scheduled post time of the first contest of a performance unless it has first obtained the authorization of the Department.

History

• Adopted effective October 21, 1993, under an exemption from the Administrative Procedure Act pursuant to A.R.S. § 41-1005(A)(18) (Supp. 93-4). R19-2-505 recodified from R4-27-505 (Supp. 95-1).
• The following Section was adopted under an exemption from the provisions of the Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to A.R.S. § 41-1005(A)(18). Exemption from A.R.S. Title 41, Chapter 6 means that the Arizona Racing Commission did not submit these rules to the Governor's Regulatory Review Council for Review; the Commission did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register; the Commission was not required to hold public hearings on these rules; and the Attorney General did not certify these rules.

Ariz. Admin. Code § R19-2-506 Claims for Payment from Pari-mutuel Pool

At a designated location, a written, verified claim for payment from a pari-mutuel pool shall be accepted by the permittee in any case where the permittee has withheld payment or has refused to cash a pari-mutuel wager. The claim shall be made on such form as approved by the Department, and the claimant shall make such claim under penalty of perjury. The original of such claim shall be forwarded to the Department within 48 hours.

1. In the case of a claim made for payment of a mutilated pari-mutuel ticket which does not contain the total imprinted elements required pursuant to R19-2-503(1) of these rules, the permittee shall make a recommendation to accompany the claim forwarded to the Department as to whether or not the mutilated ticket has sufficient elements to be positively identified as a winning ticket.

2. In the case of a claim made for payment on a pari-mutuel wager, the Department shall adjudicate the claim and may order payment thereon from the pari-mutuel pool or by the permittee, or may deny the claim, or may make such other order as it may deem proper.

History

• Adopted effective October 21, 1993, under an exemption from the Administrative Procedure Act pursuant to A.R.S. § 41-1005(A)(18) (Supp. 93-4). R19-2-506 recodified from R4-27-506 (Supp. 95-1).
• The following Section was adopted under an exemption from the provisions of the Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to A.R.S. § 41-1005(A)(18). Exemption from A.R.S. Title 41, Chapter 6 means that the Arizona Racing Commission did not submit these rules to the Governor's Regulatory Review Council for Review; the Commission did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register; the Commission was not required to hold public hearings on these rules; and the Attorney General did not certify these rules.

Ariz. Admin. Code § R19-2-507 Payment for Errors

If an error occurs in the payment amounts for pari-mutuel wagers which are cashed or entitled to be cashed and, as a result of such error, the pari-mutuel pool involved in the error is not correctly distributed among winning ticket holders, the following shall apply:

1. Verification is required to show that the amount of the commission, the amount in breakage, and the amount in payoffs is equal to the total gross pool. If the amount of the pool is more than the amount used to calculate the payoff, the underpayment shall be paid to the Department for deposit into the State Treasury.

2. Any claim not filed with the permittee within 30 days, inclusive of the date on which the underpayment was publicly announced, shall be deemed waived, and the permittee shall have no further liability therefore.

3. In the event the error results in an overpayment to winning wagers, the permittee shall be responsible for such payment.

History

• Adopted effective October 21, 1993, under an exemption from the Administrative Procedure Act pursuant to A.R.S. § 41-1005(A)(18) (Supp. 93-4). R19-2-507 recodified from R4-27-507 (Supp. 95-1).
• The following Section was adopted under an exemption from the provisions of the Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to A.R.S. § 41-1005(A)(18). Exemption from A.R.S. Title 41, Chapter 6 means that the Arizona Racing Commission did not submit these rules to the Governor's Regulatory Review Council for Review; the Commission did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register; the Commission was not required to hold public hearings on these rules; and the Attorney General did not certify these rules.

Ariz. Admin. Code § R19-2-508 Betting Explanation

A racetrack permittee shall ensure that a summary explanation of pari-mutuel wagering and each type of betting pool offered is published in the racing program for every wagering performance. The racetrack permittee shall make the rules of racing relative to each type of pari-mutuel pool offered available upon request through permittee representatives at all permittee wagering locations and shall post a link to the Department's rules page on all permittee web sites.

History

• Adopted effective October 21, 1993, under an exemption from the Administrative Procedure Act pursuant to A.R.S. § 41-1005(A)(18) (Supp. 93-4). R19-2-508 recodified from R4-27-508 (Supp. 95-1). Amended by exempt rulemaking at 20 A.A.R. 2874, effective 10/10/2014.
• The following Section was adopted under an exemption from the provisions of the Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to A.R.S. § 41-1005(A)(18). Exemption from A.R.S. Title 41, Chapter 6 means that the Arizona Racing Commission did not submit these rules to the Governor's Regulatory Review Council for Review; the Commission did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register; the Commission was not required to hold public hearings on these rules; and the Attorney General did not certify these rules.

Ariz. Admin. Code § R19-2-509 Display of Betting Information

A. A racetrack permittee shall ensure that odds or will-pay amounts for win pool betting are posted on display devices within view of the wagering public and updated at intervals of not more than 90 seconds.

B. The racetrack permittee shall ensure that amounts wagered in total for the other pools and on each betting interest or wager combination are displayed to the wagering public at intervals and in a manner approved by the Department.

C. Official results and payoffs shall be displayed when a contest is declared official.

History

• Adopted effective October 21, 1993, under an exemption from the Administrative Procedure Act pursuant to A.R.S. § 41-1005(A)(18) (Supp. 93-4). R19-2-509 recodified from R4-27-509 (Supp. 95-1). Amended by exempt rulemaking at 20 A.A.R. 2874, effective 10/10/2014.
• The following Section was adopted under an exemption from the provisions of the Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to A.R.S. § 41-1005(A)(18). Exemption from A.R.S. Title 41, Chapter 6 means that the Arizona Racing Commission did not submit these rules to the Governor's Regulatory Review Council for Review; the Commission did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register; the Commission was not required to hold public hearings on these rules; and the Attorney General did not certify these rules.

Ariz. Admin. Code § R19-2-510 Cancelled Contests

A. If a contest is cancelled or declared "no contest," refunds shall be granted on valid wagers in accordance with this Chapter.

B. Should less than three contestants in a greyhound race finish, the contest shall be declared "no contest," and refunds shall be granted on valid wagers in accordance with these rules.

History

• Adopted effective October 21, 1993, under an exemption from the Administrative Procedure Act pursuant to A.R.S. § 41-1005(A)(18) (Supp. 93-4). R19-2-510 recodified from R4-27-510 (Supp. 95-1). Amended by exempt rulemaking at 20 A.A.R. 2874, effective 10/10/2014.
• The following Section was adopted under an exemption from the provisions of the Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to A.R.S. § 41-1005(A)(18). Exemption from A.R.S. Title 41, Chapter 6 means that the Arizona Racing Commission did not submit these rules to the Governor's Regulatory Review Council for Review; the Commission did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register; the Commission was not required to hold public hearings on these rules; and the Attorney General did not certify these rules.

Ariz. Admin. Code § R19-2-511 Refunds

A. Notwithstanding other provisions of these rules, refunds of the entire pool shall be made on:

1. Win pools, Exacta pools, and first-half Double pools offered in contests in which the number of betting interests has been reduced to fewer than 2.

Place pools, Quinella pools, Trifecta pools, first-half Quinella Double pools, first-half Twin Quinella pools, first-half Twin Trifecta pools, and first-half Tri-Superfecta pools offered in contests in which the number of betting interests has been reduced to fewer than 3.

3. Show pools, Superfecta pools, and first-half Twin Superfecta pools offered in contests in which the number of betting interests has been reduced to fewer than 4.

B. Authorized refunds shall be paid upon presentation and surrender of the affected pari-mutuel ticket.

History

• Adopted effective October 21, 1993, under an exemption from the Administrative Procedure Act pursuant to A.R.S. § 41-1005(A)(18) (Supp. 93-4). R19-2-511 recodified from R4-27-511 (Supp. 95-1).
• The following Section was adopted under an exemption from the provisions of the Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to A.R.S. § 41-1005(A)(18). Exemption from A.R.S. Title 41, Chapter 6 means that the Arizona Racing Commission did not submit these rules to the Governor's Regulatory Review Council for Review; the Commission did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register; the Commission was not required to hold public hearings on these rules; and the Attorney General did not certify these rules.

Ariz. Admin. Code § R19-2-512 Coupled Entries and Mutuel Fields

A. Contestants coupled in wagering as a coupled entry or mutuel field shall be considered part of a single betting interest for the purpose of price calculations and distribution of pools. Should any contestant in a coupled entry or mutuel field be officially withdrawn or scratched, the remaining contestants in that coupled entry or mutuel field shall remain valid betting interests and no refunds will be granted. If all contestants within a coupled entry or mutuel field are scratched, then tickets on such betting interests shall be refunded, notwithstanding other provisions of these rules.

B. For the purpose of price calculations only, coupled entries and mutuel fields shall be calculated as a single finisher, using the finishing position of the leading contestant in that coupled entry or mutuel field to determine order of placing. This rule shall apply to all circumstances, including situations involving a dead heat, except as otherwise provided by these rules.

History

• Adopted effective October 21, 1993, under an exemption from the Administrative Procedure Act pursuant to A.R.S. § 41-1005(A)(18) (Supp. 93-4). R19-2-512 recodified from R4-27-512 (Supp. 95-1).
• The following Section was adopted under an exemption from the provisions of the Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to A.R.S. § 41-1005(A)(18). Exemption from A.R.S. Title 41, Chapter 6 means that the Arizona Racing Commission did not submit these rules to the Governor's Regulatory Review Council for Review; the Commission did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register; the Commission was not required to hold public hearings on these rules; and the Attorney General did not certify these rules.

Ariz. Admin. Code § R19-2-513 Pools Dependent upon Betting Interests

A. Unless the Department otherwise provides, at the time the pools are opened for wagering, the racetrack permittee:

1. May offer win, place, and show wagering on all contests with six or more betting interests.

2. May be allowed to prohibit show wagering on any contest with five or fewer betting interests scheduled to start.

3. May be allowed to prohibit place wagering on any contest with four or fewer betting interests scheduled to start.

4. May be allowed to prohibit Quinella wagering on any contest with three or fewer betting interests scheduled to start.

5. May be allowed to prohibit Quinella Double wagering on any contests with three or fewer betting interests scheduled to start.

6. May be allowed to prohibit Exacta wagering on any contest with three or fewer betting interests scheduled to start.

7. Shall prohibit Trifecta wagering on any horse racing contest with five or fewer betting interests scheduled to start. The permittee shall prohibit Trifecta wagering on any greyhound contest with five or fewer betting interests scheduled to start.

8. Shall prohibit Superfecta wagering on any contest with six or fewer betting interests scheduled to start.

9. May be allowed to prohibit Twin Quinella wagering on any contests with three or fewer betting interests scheduled to start.

10. Shall prohibit Twin Trifecta wagering on any contests with six or fewer betting interests scheduled to start.

11. Shall prohibit Tri-Superfecta wagering on any contests with of seven or fewer betting interests scheduled to start.

12. Shall prohibit Twin Superfecta wagering on any contests with seven or fewer betting interests scheduled to start.

13. May prohibit wagering on any particular contestant or contestants in stakes races, if such exclusions are clearly indicated within the program.

1. Shall offer Win wagering on all contests with three or more betting interests and may offer Win wagering on all contests with two or more betting interests.

2. Shall offer Place wagering on all contests with four or more betting interests and may offer Place wagering on all contests with three or more wagering interests.

3. Shall offer Show wagering on all contests with five or more betting interests and may offer Show wagering on all contests with four or more betting interests.

4. May offer Quinella wagering on all contests with three or more betting interests.

5. May offer Quinella Double wagering on all contests with three or more betting interests.

6. May offer Exacta wagering on all contests with two or more betting interests.

7. May offer Trifecta wagering on all contests with three or more betting interests.

8. May offer Superfecta wagering on all contests with four or more betting interests.

9. May offer Twin Quinella wagering on all contests with three or more betting interests.

10. Shall not offer first- or second-leg Twin-Trifecta or Tri-Superfecta wagering on any contests with six or fewer betting interests in either leg of the wager.

11. May offer Pick-N wagering on any consecutive contests that allow Win wagering.

12. May offer Place Pick-N wagering on any consecutive contests that allow Place wagering.

13. May prohibit wagering on any particular contestant in stakes races, if the exclusions are clearly indicated in the racing program.

B. Before each racing meet, the racetrack permittee shall establish and submit to the Department the pools to be offered with each number of betting interests.

History

• Adopted effective October 21, 1993, under an exemption from the Administrative Procedure Act pursuant to A.R.S. § 41-1005(A)(18) (Supp. 93-4). R19-2-513 recodified from R4-27-513 (Supp. 95-1). Amended effective July 3, 1996 (Supp. 96-3). Amended by exempt rulemaking at 6 A.A.R. 786, effective February 1, 2000 (Supp. 00-1). Amended by exempt rulemaking at 20 A.A.R. 2874, effective 10/10/2014.
• The following Section was adopted under an exemption from the provisions of the Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to A.R.S. § 41-1005(A)(18). Exemption from A.R.S. Title 41, Chapter 6 means that the Arizona Racing Commission did not submit these rules to the Governor's Regulatory Review Council for Review; the Commission did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register; the Commission was not required to hold public hearings on these rules; and the Attorney General did not certify these rules.

Ariz. Admin. Code § R19-2-514 Prior Approval Required for Betting Pools

A. A permittee that desires to offer new forms of wagering must apply in writing to the Department and receive written approval prior to implementing the new betting pool.

B. The permittee may suspend previously approved forms of wagering with the prior approval of the Department. Any carryover shall be held until the suspended form of wagering is reinstated. A permittee may request approval of a form of wagering or separate wagering pool for specific performances.

History

• Adopted effective October 21, 1993, under an exemption from the Administrative Procedure Act pursuant to A.R.S. § 41-1005(A)(18) (Supp. 93-4). R19-2-514 recodified from R4-27-514 (Supp. 95-1).
• The following Section was adopted under an exemption from the provisions of the Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to A.R.S. § 41-1005(A)(18). Exemption from A.R.S. Title 41, Chapter 6 means that the Arizona Racing Commission did not submit these rules to the Governor's Regulatory Review Council for Review; the Commission did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register; the Commission was not required to hold public hearings on these rules; and the Attorney General did not certify these rules.

Ariz. Admin. Code § R19-2-515 Closing of Wagering in a Contest

A. A Department representative shall close wagering for each contest. After wagering is closed, no pari-mutuel tickets shall be sold for that contest.

B. The racetrack permittee shall maintain, in good order, a system approved by the Department for closing wagering.

1. If the totalisator fails mechanically and become unreliable as to the amounts wagered, all money wagered on the contest shall be refunded.

2. If a breakdown of the totalisator cannot be repaired during wagering on a contest, the wagering for that contest shall be declared closed. The payoff for a race closed because of totalisator breakdown shall be computed on the sums wagered in each pool before the breakdown

History

• Adopted effective October 21, 1993, under an exemption from the Administrative Procedure Act pursuant to A.R.S. § 41-1005(A)(18) (Supp. 93-4). R19-2-515 recodified from R4-27-515 (Supp. (5-1). Amended by exempt rulemaking at 20 A.A.R. 2874, effective 10/10/2014.
• The following Section was adopted under an exemption from the provisions of the Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to A.R.S. § 41-1005(A)(18). Exemption from A.R.S. Title 41, Chapter 6 means that the Arizona Racing Commission did not submit these rules to the Governor's Regulatory Review Council for Review; the Commission did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register; the Commission was not required to hold public hearings on these rules; and the Attorney General did not certify these rules.

Ariz. Admin. Code § R19-2-516 Complaints Pertaining to Pari-mutuel Operations

A. When a patron makes a complaint regarding the pari-mutuel department to a permittee, the permittee shall immediately issue a complaint report setting out:

1. The name of the complainant;

2. The nature of the complaint;

3. The name of the persons, if any, against whom the complaint was made;

4. The date of the complaint;

5. The action taken or proposed to be taken, if any, by the permittee.

B. The permittee shall submit every complaint report to the Department within 48 hours after the complaint was made.

History

• Adopted effective October 21, 1993, under an exemption from the Administrative Procedure Act pursuant to A.R.S. § 41-1005(A)(18) (Supp. 93-4). R19-2-516 recodified from R4-27-516 (Supp. 95-1).
• The following Section was adopted under an exemption from the provisions of the Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to A.R.S. § 41-1005(A)(18). Exemption from A.R.S. Title 41, Chapter 6 means that the Arizona Racing Commission did not submit these rules to the Governor's Regulatory Review Council for Review; the Commission did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register; the Commission was not required to hold public hearings on these rules; and the Attorney General did not certify these rules.

Ariz. Admin. Code § R19-2-517 Licensed Employees

All licensees shall report any known irregularities or wrongdoings by any person involving pari-mutuel wagering immediately to the Department and cooperate in subsequent investigations.

History

• Adopted effective October 21, 1993, under an exemption from the Administrative Procedure Act pursuant to A.R.S. § 41-1005(A)(18) (Supp. 93-4). R19-2-517 recodified from R4-27-517 (Supp. 95-1).
• The following Section was adopted under an exemption from the provisions of the Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to A.R.S. § 41-1005(A)(18). Exemption from A.R.S. Title 41, Chapter 6 means that the Arizona Racing Commission did not submit these rules to the Governor's Regulatory Review Council for Review; the Commission did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register; the Commission was not required to hold public hearings on these rules; and the Attorney General did not certify these rules.

Ariz. Admin. Code § R19-2-518 State Mutuel Supervisor

A. The Director shall appoint a state mutuel supervisor who shall monitor the pari-mutuel department and wagering at all race meetings and additional wagering facilities.

B. A permittee shall grant the state mutuel supervisor and Department unrestricted access to its facilities and equipment and to all books, ledgers, accounts, documents, and records pertaining to pari-mutuel wagering.

C. The state mutuel supervisor shall receive all requested information from a permittee's officers and employees promptly and shall receive full cooperation while carrying out the duties of that office.

D. The state mutuel supervisor shall report to the Director and stewards any failure of the permittee, including its officers and employees, to comply with both the provisions of these rules and the laws of the state of Arizona.

History

• Adopted effective October 21, 1993, under an exemption from the Administrative Procedure Act pursuant to A.R.S. § 41-1005(A)(18) (Supp. 93-4). R19-2-518 recodified from R4-27-518 (Supp. 95-1).
• The following Section was adopted under an exemption from the provisions of the Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to A.R.S. § 41-1005(A)(18). Exemption from A.R.S. Title 41, Chapter 6 means that the Arizona Racing Commission did not submit these rules to the Governor's Regulatory Review Council for Review; the Commission did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register; the Commission was not required to hold public hearings on these rules; and the Attorney General did not certify these rules.

Ariz. Admin. Code § R19-2-519 Mutuel Manager

A. In the event of an emergency in connection with the pari-mutuel department not covered in these rules, the mutuel manager representing the permittee shall report the problem to the stewards and the permittee, and the stewards shall render a full report to the Department within 48 hours.

B. The mutuel manager shall be responsible for the correctness of all payoff prices posted on the odds board, subject to the limitations of nonfraudulent human and mechanical errors. In the event that a payoff is both incorrectly posted and paid, the mutuel manager shall file with the Department a complete report explaining the circumstances prior to the next racing day.

C. The mutuel manager shall provide the Department with, upon request, complete and detailed reports of each race day; including the handle of each race, the total handle and attendance, the payoffs on each race, breakage and commission, opening and closing lines, and sellers' shortages and overages.

History

• Adopted effective October 21, 1993, under an exemption from the Administrative Procedure Act pursuant to A.R.S. § 41-1005(A)(18) (Supp. 93-4). R19-2-519 recodified from R4-27-519 (Supp. 95-1).
• The following Section was adopted and subsequently amended under an exemption from the provisions of the Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to A.R.S. § 41-1005(A)(18). Exemption from A.R.S. Title 41, Chapter 6 means that the Arizona Racing Commission did not submit these rules to the Governor's Regulatory Review Council for Review; the Commission did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register; the Commission was not required to hold public hearings on these rules; and the Attorney General did not certify these rules.

Ariz. Admin. Code § R19-2-520 Stored Value Instruments

A. Pari-mutuel cash vouchers. A racetrack permittee may offer pari-mutuel cash vouchers at a wagering location that issues pari-mutuel tickets.

1. Cash vouchers shall be dispensed through the totalisator system;

2. The stored value on a cash voucher may be redeemed in the same manner as a value of a winning pari-mutuel ticket for wagers placed at a pari-mutuel window or a self-service terminal, and may be redeemed for the cash value at any time;

3. The tote system transaction record for all pari-mutuel cash vouchers shall include the voucher identification number in subsequent pari-mutuel transactions; and

4. Pari-mutuel wagers made from a voucher shall include the voucher by identification number.

B. A racetrack permittee may, with prior approval of the Department, issue special pari-mutuel cash vouchers as incentives or promotional prizes, and may restrict the use of the special vouchers to the purchase of pari-mutuel wagers.

C. Other stored value instruments and systems. A racetrack permittee shall not, without the prior approval of the Department, use any form of stored value instrument or system other than a pari-mutuel cash voucher for making or cashing pari-mutuel wagers. A request for approval of a stored value instrument or system other than a pari-mutuel cash voucher shall include a detailed description of the standards used to:

1. Identify the specific stored value instrument or account in the pari-mutuel system wagering transaction record;

2. Verify the identity and business address of the person obtaining, holding, and using the stored value instrument or system; and

3. Record and maintain records of deposits, credits, debits, transaction numbers, and account balances involving the stored value instruments or accounts.

D. A stored value instrument or system:

1. Shall prevent a wagering transaction if the wagering transaction will create a negative balance in the account, and

2. Shall not operate to automatically facilitate a transfer of funds into a stored value instrument or account without direct authorization of each deposit transfer by the person holding the instrument or account.

E. A request for approval of a stored value instrument or system shall include:

1. An affirmation that records and reports relating to all transactions, account records, and customer identification and verification will be made available on request to the Department in both paper or and electronic form approved by the Department; and

2. Certification of secure retention of all records for the time specified in R19-2-502.

History

• New Section made by exempt rulemaking at 20 A.A.R. 2874, effective 10/10/2014.

Ariz. Admin. Code § R19-2-521 [REPEALED]

History

• Adopted effective October 21, 1993, under an exemption from the Administrative Procedure Act pursuant to A.R.S. § 41-1005(A)(18) (Supp. 93-4). R19-2-521 recodified from R4-27-521 (Supp. 95-1). Amended effective February 17, 1998, under an exemption from the Administrative Procedure Act pursuant to A.R.S. § 41-1005(A)(18) (Supp. 98-1). Amended effective July 22, 1998, pursuant to an exemption under the Administrative Procedure Act. (Supp. 98-3). Amended by exempt rulemaking at 5 A.A.R. 532, effective January 29, 1999 (Supp. 99-1). Amended by exempt rulemaking at 5 A.A.R. 2176, effective June 15, 1999 (Supp. 99-2). Repealed by exempt rulemaking at 20 A.A.R. 2874, effective 10/10/2014.
• The following Section was adopted and subsequently amended under an exemption from the provisions of the Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to A.R.S. § 41-1005(A)(18). Exemption from A.R.S. Title 41, Chapter 6 means that the Arizona Racing Commission did not submit these rules to the Governor's Regulatory Review Council for Review; the Commission did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register; the Commission was not required to hold public hearings on these rules; and the Attorney General did not certify these rules.

Ariz. Admin. Code § R19-2-522 [REPEALED]

History

• Adopted effective October 21, 1993, under an exemption from the Administrative Procedure Act pursuant to A.R.S. § 41-1005(A)(18) (Supp. 93-4). R19-2-522 recodified from R4-27-522 (Supp. 95-1). Amended effective February 17, 1998, under an exemption from the Administrative Procedure Act pursuant to A.R.S. § 41-1005(A)(18) (Supp. 98-1). Amended by exempt rulemaking at 5 A.A.R. 532, effective January 29, 1999 (Supp. 99-1). Repealed by exempt rulemaking at 20 A.A.R. 2874, effective 10/10/2014.
• The following Section was adopted under an exemption from the provisions of the Administrative Procedure Act (A.R.S. Title 41, Chapter 6) pursuant to A.R.S. § 41-1005(A)(18). Exemption from A.R.S. Title 41, Chapter 6 means that the Arizona Racing Commission did not submit these rules to the Governor's Regulatory Review Council for Review; the Commission did not submit notice of proposed rulemaking to the Secretary of State for publication in the Arizona Administrative Register; the Commission was not required to hold public hearings on these rules; and the Attorney General did not certify these rules.

Ariz. Admin. Code § R19-2-523 Calculation of Payoffs and Distribution of Pools

A. General

1. All permitted pari-mutuel wagering pools shall be separately and independently calculated and distributed. Takeout shall be deducted from each gross pool as stipulated by law. The remainder of the monies in the pool shall constitute the net pool for distribution as payoff on winning wagers.

2. For each wagering pool, the amount wagered on the winning betting interest or betting combinations is deducted from the net pool to determine the profit; the profit is then divided by the amount wagered on the winning betting interest or combinations, such quotient being the profit per dollar.

3. Either the standard or net price calculation procedure may be used to calculate single commission pools, while the net price calculation procedure must be used to calculate multi-commission pools.

a. Standard Price Calculation Procedure

SINGLE PRICE POOL (WIN POOL)

gross pool = sum of wagers on all betting interests - refunds

takeout = gross pool x percent takeout

net pool = gross pool - takeout

profit = net pool - gross amount bet on winner

profit per dollar = profit / gross amount bet on winner

$1 unbroken price = profit per dollar + $1

$1 broken price = $1 unbroken price rounded down to the break point

total payout = $1 broken price x gross amount bet on winner

total breakage = net pool - total payout

PROFIT SPLIT (PLACE POOL)

Profit is net pool less gross amount bet on all place finishers. Finishers split profit 1/2 and 1/2 (place profit), then divide by gross amount bet on each place finisher for two unique prices.

PROFIT SPLIT (SHOW POOL)

Profit is net pool less gross amount bet on all show finishers. Finishers split profit 1/3 and 1/3 and 1/3 (show profit), then divide by gross amount bet on each show finisher for three unique prices.

b. Net Price Calculation Procedure

SINGLE PRICE POOL (WIN POOL)

gross pool = sum of wagers on all betting interests - refunds

takeout = gross pool x percent takeout

* for each source:

net pool = gross pool - takeout net bet on winner = gross amount bet on winner x (1 - percent takeout)

total net pool = sum of all sources net pools

total net bet on

winner = sum of all sources net bet on winner

total profit = total net pool - total net bet on winner

profit per dollar = total profit / total net bet on winner

$1 unbroken base

price = profit per dollar + $1

* for each source:

$1 unbroken price = $1 unbroken base price x (1 - percent takeout)

$1 broken price = $1 unbroken price rounded down to the break point

total payout = $1 broken price x gross amount bet on winner

total breakage = net pool - total payout

PROFIT SPLIT (PLACE POOL)

Total profit is the total net pool less the total net amount bet on all place finishers. Finishers split total profit 1/2 and 1/2 (place profit), then divide by total net amount bet on each place finisher for two unique unbroken base prices.

PROFIT SPLIT (SHOW POOL)

Total profit is the total net pool less the total net amount bet on all show finishers. Finishers split total profit 1/3 and 1/3 and 1/3 (show profit), then divide by total net amount bet on each show finisher for three unique unbroken base prices.

4. If a profit split results in only one covered winning betting interest or combinations, it shall be calculated the same as a single price pool.

Minimum payoffs and the method used for calculating breakage shall be established by the Department.

The individual pools outlined in these rules may be given alternative names by each permittee, provided prior approval is obtained from the Department.

B. Win Pools

1. The amount wagered on the betting interest which finishes first is deducted from the net pool, the balance remaining being the profit; the profit is divided by the amount wagered on the betting interest finishing first, such quotient being the profit per dollar wagered to Win on that betting interest.

2. The net Win pool shall be distributed as a single price pool to winning wagers in the following precedence, based upon the official order of finish:

a. To those whose selection finished first; but if there are no such wagers, then

b. To those whose selection finished second; but if there are no such wagers, then

c. To those whose selection finished third; but if there are no such wagers, then

d. The entire pool shall be refunded on Win wagers for that contest.

3. If there is a dead heat for first involving:

a. Contestants representing the same betting interest, the Win pool shall be distributed as if no dead heat occurred.

b. Contestants representing two or more betting interests, the Win pool shall be distributed as a profit split.

Table 1. Win Pool - Standard Price Calculation

Click here to view Image

C. Place Pools

1. The amounts wagered to Place on the first two betting interests to finish are deducted from the net pool, the balance remaining being the profit; the profit is divided into two equal portions, one being assigned to each winning betting interest and divided by the amount wagered to Place on that betting interest, the resulting quotient is the profit per dollar wagered to Place on that betting interest.

2. The net Place pool shall be distributed to winning wagers in the following precedence, based upon the official order of finish:

a. If contestants of a coupled entry or mutuel field finished in the first two places, as a single price pool to those who selected the coupled entry or mutuel field; otherwise

b. As a profit split to those whose selection is included within the first two finishers; but if there are no such wagers on one of those two finishers, then

c. As a single price pool to those who selected the one covered betting interest included within the first two finishers; but if there are no such wagers, then

d. As a single price pool to those who selected the third-place finisher, but if there are no such wagers, then

e. The entire pool shall be refunded on Place wagers for that contest.

3. If there is a dead heat for first involving:

a. Contestants representing the same betting interest, the Place pool shall be distributed as a single price pool.

b. Contestants representing two or more betting interests, the Place pool shall be distributed as a profit split.

4. If there is a dead heat for second involving:

a. Contestants representing the same betting interest, the Place pool shall be distributed as if no dead heat occurred.

b. Contestants representing two or more betting interests, the Place pool is divided with half of the profit distributed to Place wagers on the betting interest finishing first and the remainder is distributed equally amongst Place wagers on those betting interests involved in the dead heat for second.

Table 2. Place Pool - Standard Price Calculation

Click here to view Image

D. Show Pools

1. The amounts wagered to Show on the first three betting interests to finish are deducted from the net pool, the balance remaining being the profit; the profit is divided into three equal portions, one being assigned to each winning betting interest and divided by the amount wagered to Show on that betting interest, the resulting quotient being the profit per dollar wagered to Show on that betting interest.

2. The net Show pool shall be distributed to winning wagers in the following precedence, based upon the official order of finish:

a. If contestants of a coupled entry or mutuel field finished in the first three places, as a single price pool to those who selected the coupled entry or mutuel field; otherwise

b. If contestants of a coupled entry or mutuel field finished as two of the first three finishers, the profit is divided with two-thirds distributed to those who selected the coupled entry or mutuel field and one-third distributed to those who selected the other betting interest included within the first three finishers; otherwise

c. As a profit split to those whose selection is included within the first three finishers; but if there are no such wagers on one of those three finishers, then

d. As a profit split to those who selected one of the two covered betting interests included within the first three finishers; but if there are no such wagers on two of those three finishers, then

e. As a single price pool to those who selected the one covered betting interest included within the first three finishers; but if there are no such wagers, then

f. As a single price pool to those who selected the fourth-place finisher; but if there are no such wagers, then

g. The entire pool shall be refunded on Show wagers for that contest.

3. If there is a dead heat for first involving:

a. Two contestants representing the same betting interest, the profit is divided with 2/3rds distributed to those who selected the first-place finishers and one-third distributed to those who selected the betting interest finishing third.

b. Three contestants representing a single betting interest, the Show pool shall be distributed as a single price pool.

c. Contestants representing two or more betting interests, the Show pool shall be distributed as a profit split.

4. If there is a dead heat for second involving:

a. Contestants representing the same betting interest, the profit is divided with one-third distributed to those who selected the betting interest finishing first and two-thirds distributed to those who selected the second-place finishers.

b. Contestants representing two betting interests, the Show pool shall be distributed as a profit split.

c. Contestants representing three betting interests, the Show pool is divided with one-third of the profit distributed to Show wagers on the betting interest finishing first and the remainder is distributed equally among Show wagers on those betting interests involved in the dead heat for second.

5. If there is a dead heat for third involving:

a. Contestants representing the same betting interest, the Show pool shall be distributed as if no dead heat occurred.

b. Contestants representing two or more betting interests, the Show pool is divided with 2/3rds of the profit distributed to Show wagers on the betting interests finishing first and second and the remainder is distributed equally among Show wagers on those betting interests involved in the dead heat for third.

Table 3. Show Pool - Standard Price Calculation

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Table 4. Show Pool - Single Takeout Rate & Single Betting Source

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E. Double Pools

1. The Double requires selection of the first-place finisher in each of two specified contests.

2. The net Double pool shall be distributed to winning wagers in the following precedence, based upon the official order of finish:

a. As a single price pool to those whose selection finished first in each of the two contests; but if there are no such wagers, then

b. As a profit split to those who selected the first-place finisher in either of the two contests; but if there are no such wagers, then

c. As a single price pool to those who selected the one covered first-place finisher in either contest; but if there are no such wagers, then

d. As a single price pool to those whose selection finished second in each of the two contests; but if there are no such wagers, then

e. The entire pool shall be refunded on Double wagers for those contests.

3. If there is a dead heat for first in either of the two contests involving:

a. Contestants representing the same betting interest, the Double pool shall be distributed as if no dead heat occurred.

b. Contestants representing two or more betting interests, the Double pool shall be distributed as a profit split if there is more than one covered winning combination.

4. Should a betting interest in the first-half of the Double be scratched prior to the first Double contest being declared official, all money wagered on combinations including the scratched betting interest shall be deducted from the Double pool and refunded.

5. Should a betting interest in the second-half of the Double be scratched prior to the close of wagering on the first Double contest, all money wagered on combinations including the scratched betting interest shall be deducted from the Double pool and refunded.

6. Should a betting interest in the second-half of the Double be scratched after the close of wagering on the first Double contest, all wagers combining the winner of the first contest with the scratched betting interest in the second contest shall be allocated a consolation payoff. In calculating the consolation payoff the net Double pool shall be divided by the total amount wagered on the winner of the first contest and an unbroken consolation price obtained. The broken consolation price is multiplied by the dollar value of wagers on the winner of the first contest combined with the scratched betting interest to obtain the consolation payoff. Breakage is not declared in this calculation. The consolation payoff is deducted from the net Double pool before calculation and distribution of the winning Double payoff. Dead heats including separate betting interests in the first contest shall result in a consolation payoff calculated as a profit split.

7. If either of the Double contests are cancelled prior to the first Double contest, or the first Double contest is declared "no contest," the entire Double pool shall be refunded on Double wagers for those contests.

8. If the second Double contest is cancelled or declared "no contest" after the conclusion of the first Double contest, the net Double pool shall be distributed as a single price pool to wagers selecting the winner of the first Double contest. In the event of a dead heat involving separate betting interests, the net Double pool shall be distributed as a profit split.

Table 5. Double Pool - Standard Price Calculation

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Table 6. Double Pool - Consolation Pricing

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F. Pick 3 Pools

1. The Pick 3 requires selection of the first-place finisher in each of three specified contests.

2. The net Pick 3 pool shall be distributed to winning wagers in the following precedence, based upon the official order of finish:

a. As a single price pool to those whose selection finished first in each of the three contests; but if there are no such wagers, then

b. As a single price pool to those who selected the first-place finisher in any two of the three contests; but if there are no such wagers, then

c. As a single price pool to those who selected the first-place finisher in any one of the three contests; but if there are no such wagers, then

d. The entire pool shall be refunded on Pick 3 wagers for those contests.

3. If there is a dead heat for first in any of the three contests involving:

a. Contestants representing the same betting interest, the Pick 3 pool shall be distributed as if no dead heat occurred.

b. Contestants representing two or more betting interests, the Pick 3 pool shall be distributed as a single price pool with each winning wager receiving an equal share of the profit.

Should a betting interest in any of the three Pick 3 contests be scratched, the actual favorite, as evidenced by total amounts wagered in the Win pool at the close of wagering on that contest, shall be substituted for the scratched betting interest for all purposes, including pool calculations. In the event that the Win pool total for two or more favorites is identical, the substitute selection shall be the betting interest with the lowest program number. The totalisator shall produce reports showing each of the wagering combinations with substituted betting interests which became winners as a result of the substitution, in addition to the normal winning combination.

5. If all three Pick 3 contests are cancelled or declared "no contest," the entire pool shall be refunded on Pick 3 wagers for those contests.

6. If one or two of the Pick 3 contests are cancelled or declared "no contest," the Pick 3 pool shall remain valid and shall be distributed in accordance with subsection (F)(2) of this rule.

G. Pick (n) Pools

1. The Pick (n) requires selection of the first-place finisher in each of a designated number of contests. The permittee must obtain written approval from the Department concerning the scheduling of Pick (n) contests, the designation of one of the methods prescribed in subsection (G)(2), and the amount of any cap to be set on the carryover. Any changes to the approved Pick (n) format require prior approval from the Department.

The Pick (n) pool shall be apportioned under one of the following methods:

a. Method 1, Pick (n) with Carryover: The net Pick (n) pool and carryover, if any, shall be distributed as a single price pool to those who selected the first-place finisher in each of the Pick (n) contests, based upon the official order of finish. If there are no such wagers, then a designated percentage of the net pool shall be distributed as a single price pool to those who selected the first-place finisher in the greatest number of Pick (n) contests; and the remainder shall be added to the carryover.

b. Method 2, Pick (n) with Minor Pool and Carryover: The major share of the net Pick (n) pool and the carryover, if any, shall be distributed to those who selected the first-place finisher in each of the Pick (n) contests, based upon the official order of finish. The minor share of the net Pick (n) pool shall be distributed to those who selected the first-place finisher in the second greatest number of Pick (n) contests, based upon the official order of finish. If there are no wagers selecting the first-place finisher of all Pick (n) contests, the minor share of the net Pick (n) pool shall be distributed as a single price pool to those who selected the first-place finisher in the greatest number of Pick (n) contests; and the major share shall be added to the carryover.

c. Method 3, Pick (n) with No Minor Pool and No Carryover: The net Pick (n) pool shall be distributed as the single price pool to those who selected the first-place finisher in the greatest number of Pick (n) contests, based upon the official order of finish. If there are no winning wagers, the pool is refunded.

d. Method 4, Pick (n) with Minor Pool and No Carryover: The major share of the net Pick (n) pool shall be distributed to those who selected the first-place finisher in the greatest number of Pick (n) contests, based upon the official order of finish. The minor share of the net Pick (n) pool shall be distributed to those who selected the first-place finisher in the second greatest number of Pick (n) contests, based upon the official order of finish. If there are no wagers selecting the first-place finisher in a second greatest number of Pick (n) contests, the minor share of the net Pick (n) pool shall be combined with the major share for distribution as a single price pool to those who selected the first-place finisher in the greatest number of Pick (n) contests. If the greatest number of first-place finishers selected is 1, the major and minor shares are combined for distribution as a single price pool. If there are no winning wagers, the pool is refunded.

e. Method 5, Pick (n) with Minor Pool and No Carryover: The major share of net Pick (n) pool shall be distributed to those who selected the first-place finisher in each of the Pick (n) contests, based upon the official order of finish. The minor share of the net Pick (n) pool shall be distributed to those who selected the first-place finisher in the second greatest number of Pick (n) contests, based upon the official order of finish. If there are no wagers selecting the first-place finisher in all Pick (n) contests, the entire net Pick (n) pool shall be distributed as a single pool to those who selected the first-place finisher in the greatest number of Pick (n) contests. If there are no wagers selecting the first-place finisher in a second greatest number of Pick (n) contests, the minor share of the net Pick (n) pool shall be combined with the major share for distribution as a single price pool to those who selected the first-place finisher in each of the Pick (n) contests. If there are no winning wagers, the pool is refunded.

f. Method 6, Pick (n) with Minor Pool and Carryover with "Unique Winning Ticket" Provision (referred to as the "Unique Pick" for purposes of this rule only) : The Unique Pick net pool and carryover, if any, shall be distributed to the sole holder of a unique winning ticket that selected the first-place finisher in every one of the Unique Pick contests, based upon the official order of finish. If there is no sole holder of a unique winning ticket selecting the first-place finisher in every one of the Unique Pick contests, or if there are no wagers selecting the first-place finisher of all Unique Pick contests, the minor share of the Unique Pick net pool shall be distributed as a single price pool to those who selected the first-place finisher in the greatest number of Unique Pick contests, and the major share shall be added to the carryover. Where there is no correct selection of the first-place finisher in at least one of the Unique Pick contests, based upon the official order of finish, the day's net pool shall be refunded and the previous carryover pool amount, if any, shall be carried over to the next scheduled corresponding pool.

i. Request for Mandatory Distribution. In lieu of the event of a sole jackpot winner, the permittee may request permission to distribute the Unique Pick jackpot pursuant to subsections (G)(8) and (9) of this rule.

ii. Unique Pick Jackpot Identification. Permittees must clearly identify one of the following methods that will be relied upon for determining the existence of a Unique Pick winning ticket. The first method is when there is one and only one winning ticket that correctly selected the first place finisher in each of the Unique Pick contests, based upon the official order of finish, to be verified by the unique serial number assigned by the tote company that issued the winning ticket. The second method is when the total amount wagered on one and only one winning combination selecting the first-place finisher in each of the Unique Pick contests, based up on the official order of finish, is equal to no more than the minimum allowable wager.

3. If there is a dead heat for first in any of the Pick (n) contests involving:

a. Contestants representing the same betting interest, the Pick (n) pool shall be distributed as if no dead heat occurred.

b. Contestants representing two or more betting interests, the Pick (n) pool shall be distributed as a single price pool with each winning wager receiving an equal share of the profit.

4. Should a betting interest in any of the Pick (n) contests be scratched, the actual favorite, as evidenced by total amounts wagered in the Win pool at the host association for the contest at the close of wagering on that contest, shall be substituted for the scratched betting interest for all purposes, including pool calculations. In the event that the Win pool total for two or more favorites is identical, the substitute selection shall be the betting interest with the lowest program number. The totalisator shall produce reports showing each of the wagering combinations with substituted betting interests which became winners as a result of the substitution, in addition to the normal winning combination.

5. The Pick (n) pool shall be cancelled and all Pick (n) wagers for the individual performance shall be refunded if:

a. At least two contests included as part of a Pick 3 are cancelled or declared "no contest."

b. At least three contests included as part of a Pick 4, Pick 5, or Pick 6 are cancelled or declared "no contest."

c. At least four contests included as part of a Pick 7, Pick 8, or Pick 9 are cancelled or declared "no contest."

d. At least five contests included as part of a Pick 10 are cancelled or declared "no contest."

6. If at least one contest included as part of a Pick (n) is cancelled or declared "no contest," but not more than the number specified in subsection (G)(5) of this rule, the net pool shall be distributed as a single price pool to those whose selection finished first in the greatest number of Pick (n) contests for that performance. Such distribution shall include the portion ordinarily retained for the Pick (n) carryover but not the carryover from previous performances.

7. The Pick (n) carryover may be capped at a designated level approved by the Department so that if, at the close of any performance, the amount in the Pick (n) carryover equals or exceeds the designated cap, the Pick (n) carryover will be frozen until it is won or distributed under other provisions of this rule. After the Pick (n) carryover is frozen, 100% of the net pool, part of which ordinarily would be added to the Pick (n) carryover, shall be distributed to those whose selection finished first in the greatest number of Pick (n) contests for that performance.

8. A written request for permission to distribute the Pick (n) carryover on a specific performance may be submitted to the Department. The request shall contain justification for the distribution, an explanation of the benefit to be derived, and the intended date and performance for the distribution.

9. Should the Pick (n) carryover be designated for distribution on the final day of the meeting or on another specified date on which there are no wagers selecting the first-place finisher in each of the Pick (n) contests, the entire pool shall be distributed as a single price pool to those whose selection finished first in the greatest number of Pick (n) contests. The Pick (n) carryover shall be designated for distribution on a specified date and performance only under the following circumstances:

a. Upon written approval from the Department as provided in subsection (G)(8) of this rule.

b. Upon written approval from the Department when there is a change in the carryover cap, a change from one type of Pick (n) wagering to another, or when the Pick (n) is discontinued.

c. On the closing performance of the meet or split meet.

10. If, for any reason, the Pick (n) carryover must be held over to the corresponding Pick (n) pool of a subsequent meet, the carryover shall be deposited in an interest-bearing account approved by the Department. The Pick (n) carryover plus accrued interest shall then be added to the net Pick (n) pool of the following meet on a date and performance so designated by the Department.

11. With the written approval of the Department, the permittee may contribute to the Pick (n) carryover a sum of money up to the amount of any designated cap.

12. Providing information to any person regarding covered combinations, amounts wagered on specific combinations, number of tickets sold, or number of live tickets remaining is strictly prohibited. This shall not prohibit necessary communication between totalisator and pari-mutuel department employees for processing of pool data.

13. The permittee may suspend previously approved Pick (n) wagering with the prior approval of the Department. Any carryover shall be held until the suspended Pick (n) wagering is reinstated. A permittee may request approval of a Pick (n) wager or separate wagering pool for specific performances.

Table 7. Pick 7 Pool - Multiple Takeout Rates & Multiple Betting Sources

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H. Place Pick (n) Pools

1. The Place Pick (n) requires selection of the first- or second-place finisher in each of a designated number of contests. The permittee must obtain written approval from the Department concerning the scheduling of Place Pick (n) contests, the designation of one of the methods prescribed in subsection (H)(2), the distinctive name identifying the pool and the amount of any cap to be set on the carryover. Any changes to the approved Place Pick (n) format require prior approval from the Department.

2. The Place Pick (n) pool shall be apportioned under one of the following methods:

a. Method 1, Place Pick (n) with Carryover: The net Place Pick (n) pool and carryover, if any, shall be distributed as a single price pool to those who selected the first- or second-place finisher in each of the Place Pick (n) contests, based upon the official order of finish. If there are no such wagers, then a designated percentage of the net pool shall be distributed as a single price pool to those who selected the first- or second-place finisher in the greatest number of Place Pick (n) contests; and the remainder shall be added to the carryover.

b. Method 2, Place Pick (n) with Minor Pool and Carryover: The major share of the net Place Pick (n) pool and the carryover, if any, shall be distributed to those who selected the first- or second-place finisher in each of the Place Pick (n) contests, based upon the official order of finish. The minor share of the net Place Pick (n) pool shall be distributed to those who selected the first- or second-place finisher in the second greatest number of Place Pick (n) contests, based upon the official order of finish. If there are no wagers selecting the first- or second-place finisher of all Place Pick (n) contests, the minor share of the net Place Pick (n) pool shall be distributed as a single price pool to those who selected the first- or second-place finisher in the greatest number of Place Pick (n) contests; and the major share shall be added to the carryover.

c. Method 3, Place (n) Pick with No Minor Pool and No Carryover: The net Place Pick (n) pool shall be distributed as a single price pool to those who selected the first- or second-place finisher in the greatest number of Place Pick (n) contests, based upon the official order of finish. If there are no major winning wagers, the pool is refunded.

d. Method 4, Place Pick (n) with Minor Pool and No Carryover: The major share of the net Place Pick (n) pool shall be distributed to those who selected the first- or second-place finisher in the greatest number of Place Pick (n) contests, based upon the official order of finish. The minor share of the net Place Pick (n) pool shall be distributed to those who selected the first- or second-place finisher in the second greatest number of Place Pick (n) contests, based upon the official order of finish. If there are no wagers selecting the first- or second-place finisher in a second greatest number of Place Pick (n) contests, the minor share of the net Place Pick (n) pool shall be combined with the major share for distribution as a single price pool to those who selected the first- or second-place finisher in the greatest number of Place Pick (n) contests. If the greatest number of first- or second-place finishers selected is 1, the major and minor shares are combined for distribution as a single price pool. If there are no winning wagers, the pool is refunded.

e. Method 5, Place Pick (n) with Minor Pool and No Carryover: The major share of the net Place Pick (n) pool shall be distributed to those who selected the first- or second-place finisher in each of the Place Pick (n) contests, based upon the official order of finish. The minor share of the net Place Pick (n) pool shall be distributed to those who selected the first- or second-place finisher in the second greatest number of Place Pick (n) contests, based upon the official order of finish. If there are no wagers selecting the first- or second-place finisher in all Place Pick (n) contests, the entire net Place Pick (n) pool shall be distributed as a single price pool to those who selected the first- or second-place finisher in the greatest number of Place Pick (n) contests. If there are no wagers selecting the first or second-place finisher in a second greatest number of Place Pick (n) contests, the minor share of the net Place Pick (n) pool shall be combined with the major share for distribution as a single price pool to those who selected the first- or second-place finisher in each of the Place Pick (n) contests. If there are no winning wagers, the pool is refunded.

3. If there is a dead heat for first in any of the Place Pick (n) contests involving:

a. Contestants representing the same betting interest, the Place Pick (n) pool shall be distributed as if no dead heat occurred.

b. Contestants representing two or more betting interests, the Place Pick (n) pool shall be distributed as a single price pool with a winning wager including each betting interest participating in the dead heat.

4. If there is a dead heat for second in any of the Place Pick (n) contests involving:

a. Contestants representing the same betting interest, the Place Pick (n) pool shall be distributed as if no dead heat occurred.

b. Contestants representing two or more betting interests, the Place Pick (n) pool shall be distributed as a single price pool with a winning wager including the betting interest which finished first or any betting interest involved in a dead heat for second.

5. Should a betting interest in any Place Pick (n) contest be scratched, the actual favorite, as evidenced by total amounts wagered in the Win pool at the host association for the contest at the close of wagering on that contest, shall be substituted for the scratched betting interest for all purposes, including pool calculations. In the event that the Win pool total for two or more favorites is identical, the substitute selection shall be the betting interest with the lowest program number. The totalisator shall produce reports showing each of the wagering combinations with substituted betting interests which became winners as a result of the substitution, in addition to the normal winning combination.

6. The Place Pick (n) pool shall be cancelled and all Place Pick (n) wagers for the individual performance shall be refunded if:

a. At least two contests included as part of a Place Pick 3 are cancelled or declared "no contest."

b. At least three contests included as part of a Place Pick 4, Place Pick 5, or Place Pick 6 are cancelled or declared "no contest."

c. At least four contests included as part of a Place Pick 7, Place Pick 8, or Place Pick 9 are cancelled or declared "no contest."

d. At least five contests included as part of a Place Pick 10 are cancelled or declared "no contest."

7. If at least one contest included as part of a Place Pick (n) is cancelled or declared "no contest," but not more than the number specified in subsection (H)(6) of this rule, the net pool shall be distributed as a single price pool to those whose selection finished first or second in the greatest number of Place Pick (n) contests for that performance. Such distribution shall include the portion ordinarily retained for the Place Pick (n) carryover but not the carryover from previous performances.

8. The Place Pick (n) carryover may be capped at a designated level approved by the Department so that if, at the close of any performance, the amount in the Place Pick (n) carryover equals or exceeds the designated cap, the Place Pick (n) carryover will be frozen until it is won or distributed under other provisions of this rule. After the Place Pick (n) carryover is frozen, 100% of the net pool, part of which ordinarily would be added to the Place Pick (n) carryover, shall be distributed to those whose selection finished first or second in the greatest number of Place Pick (n) contests for that performance.

9. A written request for permission to distribute the Place Pick (n) carryover on a specific performance may be submitted to the Department. The request must contain justification for the distribution, an explanation of the benefit to be derived, and the intended date and performance for the distribution.

10. Should the Place Pick (n) carryover be designated for distribution on a specified date and performance in which there are no wagers selecting the first- or second-place finisher in each of the Place Pick (n) contests, the entire pool shall be distributed as a single price pool to those whose selection finished first or second in the greatest number of Place Pick (n) contests. The Place Pick (n) carryover shall be designated for distribution on a specified date and performance under any of the following circumstances:

a. Upon written approval from the Department as provided in subsection (H)(9) of this rule.

b. Upon written approval from the Department when there is a change in the carryover cap, a change from one type of Place Pick (n) wagering to another, or when the Place Pick (n) is discontinued.

c. On the closing performance of the meet or split meet.

11. If, for any reason, the Place Pick (n) carryover must be held over to the corresponding Place Pick (n) pool of a subsequent meet, the carryover shall be deposited in an interest-bearing account approved by the Department. The Place Pick (n) carryover plus accrued interest shall then be added to the net Place Pick (n) pool of the following meet on a date and performance so designated by the Department.

12. With the written approval of the Department, the permittee may contribute to the Place Pick (n) carryover a sum of money up to the amount of any designated cap.

13. Providing information to any person regarding covered combinations, amounts wagered on specific combinations, number of tickets sold, or number of live tickets remaining is strictly prohibited. This shall not prohibit necessary communication between totalisator and pari-mutuel department employees for processing of pool data.

14. The permittee may suspend previously approved Place Pick (n) wagering with the prior approval of the Department. Any carryover shall be held until the suspended Place Pick (n) wagering is reinstated. A permittee may request approval of a Place Pick (n) wager or separate wagering pool for specific performances.

I. Quinella Pools

1. The Quinella requires selection of the first two finishers, irrespective of order, for a single contest.

2. The net Quinella pool shall be distributed to winning wagers in the following precedence, based upon the official order of finish:

a. If contestants of a coupled entry or mutuel field finish as the first two finishers, as a single price pool to those selecting the coupled entry or mutuel field combined with the next separate betting interest in the official order of finish; otherwise

b. As a single price pool to those whose combination finished as the first two betting interests; but if there are no such wagers, then

c. As a profit split to those whose combination included either the first- or second-place finisher; but if there are no such wagers on one of the those two finishers, then

d. As a single price pool to those whose combination included the one covered betting interest included within the first two finishers; but if there are no such wagers, then

e. The entire pool shall be refunded on Quinella wagers for that contest.

3. If there is a dead heat for first involving:

a. Contestants representing the same betting interest, the Quinella pool shall be distributed to those selecting the coupled entry or mutuel field combined with the next separate betting interest in the official order of finish.

b. Contestants representing two betting interests, the Quinella pool shall be distributed as if no dead heat occurred.

c. Contestants representing three or more betting interests, the Quinella pool shall be distributed as a profit split.

4. If there is a dead heat for second involving contestants representing the same betting interest, the Quinella pool shall be distributed as if no dead heat occurred.

5. If there is a dead heat for second involving contestants representing two or more betting interests, the Quinella pool shall be distributed to wagers in the following precedence, based upon the official order of finish:

a. As a profit split to those combining the winner with any of the betting interests involved in the dead heat for second, but if there is only one covered combination, then

b. As a single price pool to those combining the winner with the one covered betting interest involved in the dead heat for second; but if there are no such wagers, then

c. As a profit split to those combining the betting interests involved in the dead heat for second; but if there are no such wagers, then

d. As a profit split to those whose combination included the winner and any other betting interest and wagers selecting any of the betting interests involved in the dead heat for second; but if there are no such wagers, then

e. The entire pool shall be refunded on Quinella wagers for that contest.

J. Quinella Double Pools

1. The Quinella Double requires selection of the first two finishers, irrespective of order, in each of two specified contests.

2. The net Quinella Double pool shall be distributed to winning wagers in the following precedence, based upon the official order of finish:

a. If a coupled entry or mutuel field finishes as the first two contestants in either contest, as a single price pool to those selecting the coupled entry or mutuel field combined with the next separate betting interest in the official order of finish for that contest, as well as the first two finishers in the alternate Quinella Double contest; otherwise

b. As a single price pool to those who selected the first two finishers in each of the two Quinella Double contests; but if there are no such wagers, then

c. As a profit split to those who selected the first two finishers in either of the two Quinella Double contests; but if there are no such wagers on one of those contests, then

d. As a single price pool to those who selected the first two finishers in the one covered Quinella Double contest; but if there were no such wagers, then

e. The entire pool shall be refunded on Quinella Double wagers for those contests.

3. If there is a dead heat for first in either of the two Quinella Double contests involving:

a. Contestants representing the same betting interest, the Quinella Double pool shall be distributed to those selecting the coupled entry or mutuel field combined with the next separate betting interest in the official order of finish for that contest.

b. Contestants representing two betting interests, the Quinella Double pool shall be distributed as if no dead heat occurred.

c. Contestants representing three or more betting interests, the Quinella Double pool shall be distributed as a profit split.

4. If there is a dead heat for second in either of the Quinella Double contests involving contestants representing the same betting interest, the Quinella Double pool shall be distributed as if no dead heat occurred.

5. If there is a dead heat for second in either of the Quinella Double contests involving contestants representing two or more betting interests, the Quinella Double pool shall be distributed as profit split.

6. Should a betting interest in the first half of the Quinella Double be scratched prior to the first Quinella Double contest being declared official, all money wagered on combinations including the scratched betting interest shall deducted from the Quinella Double pool and refunded.

7. Should a betting interest in the second half of the Quinella Double be scratched prior to the close of wagering on the first Quinella Double contest, all money wagered on combinations including the scratched betting interest shall be deducted from the Quinella Double pool and refunded.

8. Should a betting interest in the second half of the Quinella Double be scratched after the close of wagering on the first Quinella Double contest, all wagers combining the winning combination in the first contest with a combination including the scratched betting interest in the second contest shall be allocated a consolation payoff. In calculating the consolation payoff, the net Quinella Double pool shall be divided by the total amount wagered on the winning combination in the first contest and an unbroken consolation price obtained. The unbroken consolation price is multiplied by the dollar value of wagers on the winning combination in the first contest combined with a combination including the scratched betting interest in the second contest to obtain the consolation payoff. Breakage is not utilized in this calculation. The consolation payoff is deducted from the net Quinella Double pool before calculation and distribution of the winning Quinella Double payoff. In the event of a dead heat involving separate betting interests, the net Quinella Double pool shall be distributed as a profit split.

9. If either of the Quinella Double contests is cancelled prior to the first Quinella Double contest, or the first Quinella Double contest is declared "no contest," the entire Quinella Double pool shall be refunded on Quinella Double wagers for those contests.

10. If the second Quinella Double contest is cancelled or declared "no contest" after the conclusion of the first Quinella Double contest, the net Quinella Double pool shall be distributed as a single price pool to wagers selecting the winning combination in the first Quinella Double contest. If there are no wagers selecting the winning combination in the first Quinella Double contest, the entire Quinella Double pool shall be refunded on Quinella Double wagers for those contests.

K. Exacta Pools

1. The Exacta requires selection of the first two finishers, in their exact order, for a single contest.

2. The net Exacta pool shall be distributed to winning wagers in the following precedence, based upon the official order of finish:

a. If contestants of a coupled entry or mutuel field finish as the first two finishers, as a single price pool to those selecting the coupled entry or mutuel field combined with the next separate betting interest in the official order of finish; otherwise

b. As a single price pool to those whose combination finished in correct sequence as the first two betting interests; but if there are no such wagers, then

c. As a profit split to those whose combination included either the first-place betting interest to finish first or the second-place betting interest to finish second; but if there are no such wagers on one of those two finishers, then

d. As a single price pool to those whose combination included the one covered betting interest to finish first or second in the correct sequence; but if there are no such wagers, then

e. The entire pool shall be refunded on Exacta wagers for that contest.

3. If there is a dead heat for first involving:

a. Contestants representing the same betting interest, the Exacta pool shall be distributed as a single price pool to those selecting the coupled entry or mutuel field combined with the next separate betting interest in the official order of finish.

b. Contestants representing two or more betting interests, the Exacta pool shall be distributed as a profit split.

4. If there is a dead heat for second involving contestants representing the same betting interest, the Exacta pool shall be distributed as if no dead heat occurred.

5. If there is a dead heat for second involving contestants representing two or more betting interests, the Exacta pool shall be distributed to ticket holders in the following precedence, based upon the official order of finish:

a. As a profit split to those combining the first-place betting interest with any of the betting interests involved in the dead heat for second; but if there is only one covered combination, then

b. As a single price pool to those combining the first-place betting interest with the one covered betting interest involved in the dead heat for second; but if there are no such wagers, then

c. As a profit split to those wagers correctly selecting the winner for first place and those wagers selecting any of the dead-heated betting interests for second place; but if there are no such wagers, then

d. The entire pool shall be refunded on Exacta wagers for that contest.

L. Trifecta Pools

1. The Trifecta requires selection of the first three finishers, in their exact order, for a single contest.

2. The net Trifecta pool shall be distributed to winning wagers in the following precedence, based upon the official order of finish:

a. As a single price pool to those whose combination finished in correct sequence as the first three betting interests; but if there are no such wagers, then

b. As a single price pool to those whose combination included, in correct sequence, the first two betting interests; but if there are no such wagers, then

c. As a single price pool to those whose combination correctly selected the first-place betting interest only; but if there are no such wagers, then

d. The entire pool shall be refunded on Trifecta wagers for that contest.

3. If less than three betting interests finish and the contest is declared official, payoffs will be made based upon the order of finish of those betting interests completing the contest. The balance of any selection beyond the number of betting interests completing the contest shall be ignored.

4. If there is a dead heat for first involving:

a. Contestants representing three or more betting interests, all of the wagering combinations selecting three betting interests which correspond with any of the betting interests involved in the dead heat shall share in a profit split.

b. Contestants representing two betting interests, both of the wagering combinations selecting the two dead-heated betting interests, irrespective of order, along with the third-place betting interest shall share in a profit split.

5. If there is a dead heat for second, all of the combinations correctly selecting the winner combined with any of the betting interests involved in the dead heat for second shall share in a profit split.

6. If there is a dead heat for third, all wagering combinations correctly selecting the first two finishers, in correct sequence, along with any of the betting interests involved in the dead heat for third shall share in a profit split.

M. Superfecta Pools

1. The Superfecta requires selection of the first four finishers, in their exact order, for a single contest.

2. The net Superfecta pool shall be distributed to winning wagers in the following precedence, based upon the official order of finish:

a. As a single price pool to those whose combination finished in correct sequence as the first four betting interests; but if there are no such wagers, then

b. As a single price pool to those whose combination included, in correct sequence, the first three betting interests; but if there are no such wagers, then

c. As a single price pool to those whose combination included, in correct sequence, the first two betting interests; but if there are no such wagers, then

d. As a single price pool to those whose combination correctly selected the first-place betting interest only; but if there are no such wagers, then

e. The entire pool shall be refunded on Superfecta wagers for that contest.

3. If less than four betting interests finish and the contest is declared official, payoffs will be made based upon the order of finish of those betting interests completing the contest. The balance of any selection beyond the number of betting interests completing the contest shall be ignored.

4. If there is a dead heat for first involving:

a. Contestants representing four or more betting interests, all of the wagering combinations selecting four betting interests which correspond with any of the betting interests involved in the dead heat shall share in a profit split.

b. Contestants representing three betting interests, all of the wagering combinations selecting the three dead-heated betting interests, irrespective of order, along with the fourth-place betting interest shall share in a profit split.

c. Contestants representing two betting interests, both of the wagering combinations selecting the two dead-heated betting interests, irrespective of order, along with the third-place and fourth-place betting interests shall share in a profit split.

5. If there is a dead heat for second involving:

a. Contestants representing three or more betting interests, all of the wagering combinations correctly selecting the winner combined with any of the three betting interests involved in the dead heat for second shall share in a profit split.

b. Contestants representing two betting interests, all of the wagering combinations correctly selecting the winner, the two dead-heated betting interests, irrespective of order, and the fourth-place betting interest shall share in a profit split.

6. If there is a dead heat for third, all wagering combinations correctly selecting the first two finishers, in correct sequence, along with any two of the betting interests involved in the dead heat for third shall share in a profit split.

7. If there is a dead heat for fourth, all wagering combinations correctly selecting the first three finishers, in correct sequence, along with any of the betting interests involved in the dead heat for fourth shall share in a profit split.

N. Twin Quinella Pools

1. The Twin Quinella requires selection of the first two finishers, irrespective of order, in each of two designated contests. Each winning ticket for the first Twin Quinella contest must be exchanged for a free ticket on the second Twin Quinella contest in order to remain eligible for the second-half Twin Quinella pool. Such tickets may be exchanged only at attended ticket windows prior to the second Twin Quinella contest. There will be no monetary reward for winning the first Twin Quinella contest. Both of the designated Twin Quinella contests shall be included in only one Twin Quinella pool.

2. In the first Twin Quinella contest only, winning wagers shall be determined using the following precedence, based upon the official order of finish for the first Twin Quinella contest:

a. If a coupled entry or mutuel field finishes as the first two finishers, those who selected the coupled entry or mutuel field combined with the next separate betting interest in the official order of finish shall be winners; otherwise

b. Those whose combination finished as the first two betting interests shall be winners; but if there are no such wagers, then

c. Those whose combination included either the first- or second-place finisher shall be winners; but if there are no such wagers on one of those two finishers, then

d. Those whose combination included the one covered betting interest included within the first two finishers shall be winners; but if there are no such wagers, then

e. The entire pool shall be refunded on Twin Quinella wagers for that contest.

3. In the first Twin Quinella contest only, if there is a dead heat for first involving:

a. Contestants representing the same betting interest, those who selected the coupled entry or mutuel field combined with the next separate betting interest in the official order of finish shall be winners.

b. Contestants representing two betting interests, the winning Twin Quinella wagers shall be determined as if no dead heat occurred.

c. Contestants representing three or more betting interests, those whose combination included any two of the betting interests finishing in the dead heat shall be winners.

4. In the first Twin Quinella contest only, if there is a dead heat for second involving contestants representing two or more betting interests, the Twin Quinella pool shall be distributed to wagers in the following precedence, based upon the official order of finish:

a. As a profit split to those combining the winner with any of the betting interests involved in the dead heat for second; but if there is only one covered combination, then

b. As a single price pool to those combining the winner with the one covered betting interest involved in the dead heat for second, but if there are no such wagers, then

c. As a profit split to those combining the betting interests involved in the dead heat for second; but if there are no such wagers, then

d. As a profit split to those whose combination included the winner and any other betting interest and wagers selecting any of the betting interests involved in the dead heat for second; but if there are no such wagers, then

e. The entire pool shall be refunded on Twin Quinella wagers for the contest.

5. In the second Twin Quinella contest only, the entire net Twin Quinella pool shall be distributed to winning wagers in the following precedence, based upon the official order of finish for the second Twin Quinella contest:

a. If a coupled entry or mutuel field finishes as the first two finishers, as a single price pool to those who selected the coupled entry or mutuel field combined with the next separate betting interest in the official order of finish; otherwise

b. As a single price pool to those whose combination finished as the first two betting interests; but if there are no such wagers, then

c. As a profit split to those whose combination included either the first- or second-place finisher; but if there are no such wagers on one of those two finishers, then

d. As a single price pool to those whose combination included the one covered betting interest included within the first two finishers; but if there are no such wagers, then

e. As a single price pool to all the exchange ticket holders for that contest; but if there are no such tickets, then

f. In accordance with subsection (N)(2) of the Twin Quinella rules.

6. In the second Twin Quinella contest only, if there is a dead heat for first involving:

a. Contestants representing the same betting interest, the net Twin Quinella pool shall be distributed to those selecting the coupled entry or mutuel field combined with the next separate betting interest in the official order of finish.

b. Contestants representing two betting interests, the net Twin Quinella pool shall be distributed as if no dead heat occurred.

c. Contestants representing three or more betting interests, the net Twin Quinella pool shall be distributed as a profit split to those whose combination included any two of the betting interests finishing in the dead heat.

7. In the second Twin Quinella contest only, if there is a dead heat for second involving contestants representing two or more betting interests, the Twin Quinella pool shall be distributed to wagers in the following precedence, based upon the official order of finish:

a. As a profit split to those combining the winner with any of the betting interests involved in the dead heat for second; but if there is only one covered combination, then

b. As a single price pool to those combining the winner with the one covered betting interest involved in the dead heat for second; but if there are no such wagers, then

c. As a profit split to those combining the betting interests involved in the dead heat for second; but if there are no such wagers, then

d. As a profit split to those whose combination included the winner and any other betting interest and wagers selecting any of the betting interests involved in the dead heat for second, then

e. As a single price pool to all the exchange ticket holders for that contest; but if there are no such tickets, then

f. In accordance with subsection (N)(2) of the Twin Quinella rules.

8. If a winning ticket for the first-half of the Twin Quinella is not presented for exchange prior to the close of betting on the second-half Twin Quinella contest, the ticket holder forfeits all rights to any distribution of the Twin Quinella pool resulting from the outcome of the second contest.

9. Should a betting interest in the first half of the Twin Quinella be scratched, those Twin Quinella wagers including the scratched betting interest shall be refunded.

10. Should a betting interest in the second half of the Twin Quinella be scratched, an announcement concerning the scratch shall be made and a reasonable amount of time shall be provided for exchange of tickets that include the scratched betting interest. If tickets have not been exchanged prior to the close of betting for the second Twin Quinella contest, the ticket holder forfeits all rights to the Twin Quinella pool.

11. If either of the Twin Quinella contests is cancelled prior to the first Twin Quinella contest, or the first Twin Quinella contest is declared "no contest," the entire Twin Quinella pool shall be refunded on Twin Quinella wagers for that contest.

12. If the second-half Twin Quinella contest is cancelled or declared "no contest" after the conclusion of the first Twin Quinella contest, the net Twin Quinella pool shall be distributed as a single price pool to wagers selecting the winning combination in the first Twin Quinella contest and all valid exchange tickets. If there are no such wagers, the net Twin Quinella pool shall be distributed as described in subsection (N)(2) of the Twin Quinella rules.

O. Twin Trifecta Pools

1. The Twin Trifecta requires selection of the first three finishers, in their exact order, in each of two designated contests. Each winning ticket for the first Twin Trifecta contest must be exchanged for a free ticket on the second Twin Trifecta contest in order to remain eligible for the second-half Twin Trifecta pool. Such tickets may be exchanged only at attended ticket windows prior to the second Twin Trifecta contest. Winning first-half Twin Trifecta wagers will receive both an exchange and a monetary payoff. Both of the designated Twin Trifecta contests shall be included in only one Twin Trifecta pool.

2. After wagering closes for the first half of the Twin Trifecta and commissions have been deducted from the pool, the net pool shall then be divided into separate pools: the first-half Twin Trifecta pool and the second-half Twin Trifecta pool.

3. In the first Twin Trifecta contest only, winning wagers shall be determined using the following precedence, based upon the official order of finish for the first Twin Trifecta contest:

a. As a single price pool to those whose combination finished in correct sequence as the first three betting interests; but if there are no such wagers, then

b. As a single price pool to those whose combination included, in correct sequence, the first two betting interests; but if there are no such wagers, then

c. As a single price pool to those whose combination correctly selected the first-place betting interest only; but if there are no such wagers, then

d. The entire Twin Trifecta pool shall be refunded on Twin Trifecta wagers for that contest and the second half shall be cancelled.

4. If no first-half Twin Trifecta ticket selects the first three finishers of that contest in exact order, winning ticket holders shall not receive any exchange tickets for the second-half Twin Trifecta pool. In such case, the second-half Twin Trifecta pool shall be retained and added to any existing Twin Trifecta carryover pool.

5. Winning tickets from the first half of the Twin Trifecta shall be exchanged for tickets selecting the first three finishers of the second-half of the Twin Trifecta. The second-half Twin Trifecta pool shall be distributed to winning wagers in the following precedence, based upon the official order of finish for the second Twin Trifecta contest:

a. As a single price pool, including any existing carryover monies, to those whose combination finished in correct sequence as the first three betting interests; but if there are no such tickets, then

b. The entire second-half Twin Trifecta pool for that contest shall be added to any existing carryover monies and retained for the corresponding second-half Twin Trifecta pool of the next consecutive performance.

6. If a winning first-half Twin Trifecta ticket is not presented for cashing and exchange prior to the second-half Twin Trifecta contest, the ticket holder may still collect the monetary value associated with the first-half Twin Trifecta pool but forfeits all rights to any distribution of the second-half Twin Trifecta pool.

7. Should a betting interest in the first half of the Twin Trifecta be scratched, those Twin Trifecta wagers including the scratched betting interest shall be refunded.

8. Should a betting interest in the second-half of the Twin Trifecta be scratched, an announcement concerning the scratch shall be made and a reasonable amount of time shall be provided for exchange of tickets that include the scratched betting interest. If tickets have not been exchanged prior to the close of betting for the second Twin Trifecta contest, the ticket holder forfeits all rights to the second-half Twin Trifecta pool.

9. If, due to a late scratch, the number of betting interests in the second half of the Twin Trifecta is reduced to fewer than the minimum, all exchange tickets and outstanding first-half winning tickets shall be entitled to the second-half Twin Trifecta pool for that contest as a single price pool, but not the Twin-Trifecta carryover.

10. If there is a dead heat or multiple dead heats in either the first- or second-half of the Twin Trifecta, all Twin Trifecta wagers selecting the correct order of finish, counting a betting interest involved in a dead heat as finishing in any dead-heated position, shall be a winner. In the case of a dead heat occurring in:

a. The first half of the Twin Trifecta, the payoff shall be calculated as a profit split.

b. The second half of the Twin Trifecta, the payoff shall be calculated as a single price pool.

11. If either of the Twin Trifecta contests are cancelled prior to the first Twin Trifecta contest, or the first Twin Trifecta contest is declared "no contest," the entire Twin Trifecta pool shall be refunded on Twin Trifecta wagers for that contest and the second half shall be cancelled.

12. If the second-half Twin Trifecta contest is cancelled or declared "no contest," all exchange tickets and outstanding first-half winning Twin Trifecta tickets shall be entitled to the net Twin Trifecta pool for that contest as a single price pool, but not Twin-Trifecta carryover. If there are no such tickets, the net Twin Trifecta pool shall be distributed as described in subsection (O)(3) of the Twin Trifecta rules.

13. The Twin-Trifecta carryover may be capped at a designated level approved by the Department so that if, at the close of any performance, the amount in the Twin- Trifecta carryover equals or exceeds the designated cap, the Twin-Trifecta carryover will be frozen until it is won or distributed under other provisions of this rule. After the Twin Trifecta carryover is frozen, 100% of the net Twin Trifecta pool for each individual contest shall be distributed to carryover winners of the first half of the Twin Trifecta pool.

14. A written request for permission to distribute the Twin-Trifecta carryover on a specific performance may be submitted to the Department. The request must contain justification for the distribution, an explanation of the benefit to be derived, and the intended date and performance for the distribution.

15. Should the Twin-Trifecta carryover be designated for distribution on a specified date and performance, the following precedence will be followed in determining winning tickets for the second half of the Twin Trifecta after completion of the first half of the Twin Trifecta:

a. As a single price pool to those whose combination finished in correct sequence as the first three betting interests; but if there are no such wagers, then

b. As a single price pool to those whose combination included, in correct sequence, the first two betting interests; but if there are no such wagers, then

c. As a single price pool to those whose combination correctly selected the first-place betting interest only; but if there are no such wagers, then

d. As a single price pool to holders of valid exchange tickets.

e. As a single price pool to holders of outstanding first-half winning tickets.

16. Contrary to subsection (O)(4) of the Twin Trifecta rules, during a performance designated to distribute the Twin-Trifecta carryover, exchange tickets will be issued for those combinations selecting the greatest number of betting interests in their correct order of finish for the first half of the Twin Trifecta. If there are no wagers correctly selecting the first-, second-, and third-place finishers, in their exact order, then exchange tickets shall be issued for combinations correctly selecting the first- and second-place betting interests. If there are no wagers correctly selecting the first- and second-place finishers, in their exact order, then exchange tickets shall be issued for combinations correctly selecting the first-place betting interest only. If there are no wagers selecting the first-place betting interest only in the first half of the Twin Trifecta, all first-half tickets will become winners and will receive 100% of that day's net Twin Trifecta pool and any existing Twin-Trifecta carryover as a single price pool.

17. The Twin-Trifecta carryover shall be designated for distribution on a specified date and performance only under the following circumstances:

a. Upon written approval from the Department as provided in subsection (O)(15) of the Twin Trifecta rules.

b. Upon written approval from the Department when there is a change in the carryover cap or when the Twin Trifecta is discontinued.

c. On the closing performance of the meet or split meet.

18. If, for any reason, the Twin-Trifecta carryover must be held over to the corresponding Twin Trifecta pool of a subsequent meet, the carryover shall be deposited in an interest-bearing account approved by the Department. The Twin-Trifecta carryover plus accrued interest shall then be added to the second-half Twin Trifecta pool of the following meet on a date and performance so designated by the Department.

19. Providing information to any person regarding covered combinations, amounts wagered on specific combinations, number of tickets sold, or number of valid exchange tickets is prohibited. This shall not prohibit necessary communication between totalisator and pari-mutuel department employees for processing of pool data.

20. The permittee must obtain written approval from the Department concerning the scheduling of Twin Trifecta contests, the percentages of the net pool added to the first-half pool and second-half pool, and the amount of any cap to be set on the carryover. Any changes to the approved Twin Trifecta format require prior approval from the Department.

P. Tri-Superfecta Pools

1. The Tri-Superfecta requires selection of the first three finishers, in their exact order, in the first of two designated contests and the first four finishers, in exact order, in the second of the two designated contests. Each winning ticket for the first Tri-Superfecta contest must be exchanged for a free ticket on the second Tri-Superfecta contest in order to remain eligible for the second-half Tri-Superfecta pool. Such tickets may be exchanged only at attended ticket windows prior to the second Tri-Superfecta contest. Winning first-half Tri-Superfecta tickets will receive both an exchange and a monetary payoff. Both of the designated Tri-Superfecta contests shall be included in only one Tri-Superfecta pool.

2. After wagering closes for the first-half of the Tri-Superfecta and commissions have been deducted from the pool, the net pool shall then be divided into two separate pools: the first-half Tri-Superfecta pool and the second-half Tri-Superfecta pool.

3. In the first Tri-Superfecta contest only, winning tickets shall be determined using the following precedence, based upon the official order of finish for the first Tri-Superfecta contest:

a. As a single price pool to those whose combination finished in correct sequence as the first three betting interests; but if there are no such wagers, then

b. As a single price pool to those whose combination included, in correct sequence, the first two betting interests; but if there are no such wagers, then

c. As a single price pool to those whose combination correctly selected the first-place betting interest only; but if there are no such wagers, then

d. The entire Tri-Superfecta pool shall be refunded on Tri-Superfecta for that contest and the second half shall be cancelled.

4. If no first-half Tri-Superfecta ticket selects the first three finishers of that contest in exact order, winning ticket holders shall not receive any exchange tickets for the second-half Tri-Superfecta pool. In such case, the second-half Tri-Superfecta pool shall be retained and added to any existing Tri-Superfecta carryover pool.

5. Winning tickets from the first half of the Tri-Superfecta shall be exchanged for tickets selecting the first four finishers of the second-half of the Tri-Superfecta. The second-half Tri-Superfecta pool shall be distributed to winning wagers in the following precedence, based upon the official order of finish for the second Tri-Superfecta contest:

a. As a single price pool, including any existing carryover monies, to those whose combination finished in correct sequence as the first four betting interests; but if there are no such tickets, then

b. The entire second-half Tri-Superfecta pool for that contest shall be added to any existing carryover monies and retained for the corresponding second-half Tri-Superfecta pool of the next performance.

6. If a winning first-half Tri-Superfecta ticket is not presented for cashing and exchange prior to the second-half Tri-Superfecta contest, the ticket holder may still collect the monetary value associated with the first-half Tri-Superfecta pool but forfeits all rights to any distribution of the second-half Tri-Superfecta pool.

7. Coupled entries and mutuel fields shall be prohibited in Tri-Superfecta contests.

8. Should a betting interest in the first-half of the Tri-Superfecta be scratched, those Tri-Superfecta tickets including the scratched betting interest shall be refunded.

9. Should a betting interest in the second-half of the Tri-Superfecta be scratched, an announcement concerning the scratch shall be made and a reasonable amount of time shall be provided for exchange of tickets that include the scratched betting interest. If tickets have not been exchanged prior to the close of betting for the second Tri-Superfecta contest, the ticket holder forfeits all rights to the second-half Tri-Superfecta pool.

10. If, due to a late scratch, the number of betting interests in the second-half of the Tri-Superfecta is reduced to fewer than the minimum, all exchange tickets and outstanding first-half winning tickets shall be entitled to the second-half Tri-Superfecta pool for that contest as a single price pool, but not the Tri-Superfecta carryover.

11. If there is a dead heat or multiple dead heats in either the first or second half of the Tri-Superfecta, all Tri-Superfecta tickets selecting the correct order of finish, counting a betting interest involved in a dead heat as finishing in any dead-heated position, shall be a winner. In the case of a dead heat occurring in

a. The first-half of the Tri-Superfecta, the payoff shall be calculated as a profit split.

b. The second-half of the Tri-Superfecta, the payoff shall be calculated as a single price pool.

12. If either of the Tri-Superfecta contests are cancelled prior to the first Tri-Superfecta contest, or the first Tri-Superfecta contest is declared "no contest," the entire Tri-Superfecta pool shall be refunded on Tri-Superfecta wagers for that contest and the second half shall be cancelled.

13. If the second-half Tri-Superfecta contest is cancelled or declared "no contest," all exchange tickets and outstanding first-half winning Tri-Superfecta tickets shall be entitled to the net Tri-Superfecta pool for that contest as a single price pool, but not the Tri-Superfecta carryover. If no there are no such tickets, the net Tri-Superfecta pool shall be distributed as described in subsection (P)(3) of the Tri-Superfecta rules.

14. The Tri-Superfecta carryover may be capped at a designated level approved by the Department so that if, at the close of any performance, the amount in the Tri-Superfecta carryover equals or exceeds the designated cap, the Tri-Superfecta carryover will be frozen until it is won or distributed under other provisions of this rule. After the second-half Tri-Superfecta carryover is frozen, 100% of the net Tri-Superfecta pool for each individual contest shall be distributed to winners of the first-half of the Tri-Superfecta pool.

15. A written request for permission to distribute the Tri-Superfecta carryover on a specific performance may be submitted to the Department. The request must contain justification for the distribution, an explanation of the benefit to be derived, and the intended date and performance for the distribution.

16. Should the Tri-Superfecta carryover be designated for distribution on a specified date and performance, the following precedence will be followed in determining winning tickets for the second half of the Tri-Superfecta after completion of the first half of the Tri-Superfecta:

a. As a single price pool to those whose combination finished in correct sequence as the first four betting interests; but if there are no such wagers, then

b. As a single price pool to those whose combination included, in correct sequence, the first three betting interests; but if there are no such wagers, then

c. As a single price pool to those whose combination included, in correct sequence, the first two betting interests; but if there are no such wagers, then

d. As a single price pool to those whose combination included, in correct sequence, the first-place betting interest only; but if there are no such wagers, then

e. As a single price pool to holders of valid exchange tickets.

f. As a single price pool to holders of outstanding first-half winning tickets.

17. Contrary to subsection (P)(4) of the Tri-Superfecta rules, during a performance designated to distribute the Tri-Superfecta carryover, exchange tickets will be issued for those combinations selecting the greatest number of betting interests in their correct order of finish for the first-half of the Tri-Superfecta. If there are no wagers correctly selecting the first-, second-, and third-place finishers, in their exact order, then exchange tickets shall be issued for combinations correctly selecting the first- and second-place betting interests. If there are no wagers correctly selecting the first- and second-place finishers, in their exact order, then exchange tickets shall be issued for combinations correctly selecting the first-place betting interest only. If there are no wagers selecting the first-place betting interest only in the first half of the Tri-Superfecta, all first-half tickets will become winners and will receive 100% of that day's net Tri-Superfecta pool and any existing Tri-Superfecta carryover as a single price pool.

18. The Tri-Superfecta carryover shall be designated for distribution on a specified date and performance only under the following circumstances:

a. Upon written approval from the Department as provided in subsection (P)(15) of the Tri-Superfecta rules.

b. Upon written approval from the Department when there is a change in the carryover cap or when the Tri-Superfecta is discontinued.

c. On the closing performance of the meet or split meet.

19. If, for any reason, the Tri-Superfecta carryover must be held over to the corresponding Tri-Superfecta pool of a subsequent meet, the carryover shall be deposited in an interest-bearing account approved by the Department. The Tri-Superfecta carryover plus accrued interest shall then be added to the second-half Tri-Superfecta pool of the following meet on a date and performance so designated by the Department.

Providing information to any person regarding covered combinations, amounts wagered on specific combinations, number of tickets sold, or number of valid exchange tickets is prohibited. This shall not prohibit necessary communication between totalisator and pari-mutuel department employees for processing of pool data.

21. The permittee must obtain written approval from the Department concerning the scheduling of Tri-Superfecta contests, the percentages of the net pool added to the first-half pool and second-half pool, and the amount of any cap to be set on the carryover. Any changes to the approved Tri-Superfecta format require prior approval from the Department.

Q. Twin Superfecta Pools

1. The Twin Superfecta requires selection of the first four finishers, in their exact order, in each of two designated contests. Each winning ticket for the first Twin Superfecta contest must be exchanged for a free ticket on the second Twin Superfecta contest in order to remain eligible for the second-half Twin Superfecta pool. Such tickets may be exchanged only at attended ticket windows prior to the second Twin Superfecta contest. Winning first-half Twin Superfecta tickets will receive both an exchange and a monetary payoff. Both of the designated Twin Superfecta contests shall be included in only one Twin Superfecta pool.

2. After wagering closes for the first half of the Twin Superfecta and commissions have been deducted from the pool, the net pool shall then be divided into two separate pools: the first-half Twin Superfecta pool and the second-half Twin Superfecta pool.

3. In the first Twin Superfecta contest only, winning wagers shall be determined using the following precedence, based upon the official order of finish for the first Twin Superfecta contest:

a. As a single price pool to those whose combination finished in correct sequence as the first four betting interests; but if there are no such wagers, then

b. As a single price pool to those whose combination included, in correct sequence, the first three betting interests; but if there are no such wagers, then

c. As a single price pool to those whose combination included, in correct sequence, the first two betting interests; but if there are no such wagers, then

d. As a single price pool to those whose combination correctly selected the first-place betting interest only; but if there are no such wagers, then

e. The entire Twin Superfecta pool shall be refunded on Twin Superfecta wagers for that contest and the second half shall be cancelled.

4. If no first-half Twin Superfecta ticket selects the first four finishers of that contest in exact order, winning ticket holders shall not receive any exchange tickets for the second-half Twin Superfecta pool. In such case, the second-half Twin Superfecta pool shall be retained and added to any existing Twin Superfecta carryover pool.

5. Winning tickets from the first half of the Twin Superfecta shall be exchanged for tickets selecting the first four finishers of the second half of the Twin Superfecta. The second-half Twin Superfecta pool shall be distributed to winning wagers in the following precedence, based upon the official order of finish for the second Twin Superfecta contest:

a. As a single price pool, including any existing carryover monies, to those whose combination finished in correct sequence as the first four betting interests; but if there are no such tickets, then

b. The entire second-half Twin Trifecta pool for that contest shall be added to any existing carryover monies and retained for the corresponding second-half Twin Superfecta pool of the next performance.

6. If a winning first-half Twin Superfecta ticket is not presented for cashing and exchange prior to the second-half Twin Superfecta contest, the ticket holder may still collect the monetary value associated with the first-half Twin Superfecta pool but forfeits all rights to any distribution of the second-half Twin Trifecta pool.

7. Coupled entries and mutuel fields shall be prohibited in Twin Superfecta contests.

8. Should a betting interest in the first half of the Twin Superfecta be scratched, those Twin Superfecta tickets including the scratched betting interest shall be refunded.

9. Should a betting interest in the second half of the Twin Superfecta be scratched, an announcement concerning the scratch shall be made and a reasonable amount of time shall be provided for exchange of tickets that include the scratched betting interest. If tickets have not been exchanged prior to the close of betting for the second Twin Superfecta contest, the ticket holder forfeits all rights to the second-half Twin Superfecta pool.

10. If, due to a late scratch, the number of betting interests in the second-half of the Twin Superfecta is reduced to fewer than the minimum, all exchange tickets and outstanding first-half winning tickets shall be entitled to the second-half Twin Superfecta pool for that contest as a single price pool but not the Twin Superfecta carryover.

11. If there is a dead heat or multiple dead heats in either the first- or second-half of the Twin Superfecta, all Twin Superfecta tickets selecting the correct order of finish, counting a betting interest involved in a dead heat as finishing in any dead-heated position, shall be a winner. In the case of a dead heat occurring in:

a. The first half of the Twin Superfecta, the payoff shall be calculated as a profit split.

b. The second half of the Twin Superfecta, the payoff shall be calculated as a single price pool.

12. If either of the Twin Superfecta contests is cancelled prior to the first Twin Superfecta contest, or the first Twin Superfecta contest is declared "no contest," the entire Twin Superfecta pool shall be refunded on Twin Superfecta wagers for that contest and the second half shall be cancelled.

13. If the second-half Twin Superfecta contest is cancelled or declared "no contest," all exchange tickets and outstanding first-half winning Twin Superfecta tickets shall be entitled to the net Twin Superfecta pool for that contest as a single price pool but not the Twin Superfecta carryover. If there are no such tickets, the net Twin Superfecta pool shall be distributed as described in subsection (Q)(3) of the Twin Superfecta rules.

14. The Twin Superfecta carryover may be capped at a designated level approved by the Department so that if, at the close of any performance, the amount in the Twin Superfecta carryover equals or exceeds the designated cap, the Twin Superfecta carryover will be frozen until it is won or distributed under other provisions of this rule. After the second-half Twin Superfecta carryover is frozen, 100% of the net Twin Superfecta pool for each individual contest shall be distributed to winners of the first half of the Twin Superfecta pool.

15. A written request for permission to distribute the Twin Superfecta carryover on a specific performance may be submitted to the Department. The request must contain justification for the distribution, an explanation of the benefit to be derived, and the intended date and performance for the distribution.

16. Should the Twin Superfecta carryover be designated for distribution on a specified date and performance, the following precedence will be followed in determining winning tickets for the second half of the Twin Superfecta after completion of the first half of the Twin Superfecta:

a. As a single price pool to those whose combination finished in correct sequence as the first four betting interests; but if there are no such wagers, then

b. As a single price pool to those whose combination included, in correct sequence, the first three betting interests; but if there are no such wagers, then

c. As a single price pool to those whose combination included, in correct sequence, the first two betting interests; but if there are no such wagers, then

d. As a single price pool to those whose combination correctly selected the first-place betting interest only; but if there are no such wagers, then

e. As a single price pool to holders of valid exchange tickets.

f. As a single price pool to holders of outstanding first-half winning tickets.

17. Contrary to subsection (Q)(4) of the Twin Superfecta rules, during a performance designated to distribute the Twin Superfecta carryover, exchange tickets will be issued for those combinations selecting the greatest number of betting interests in their correct order of finish for the first-half of the Twin Superfecta. If there are no wagers correctly selecting the first-, second-, third-, and fourth-place finishers, in their exact order, then exchange tickets shall be issued for combinations correctly selecting the first-, second-, and third-place betting interests. If there are no wagers correctly selecting the first-, second-, and third-place finishers, in their exact order, then exchange tickets shall be issued for combinations correctly selecting the first- and second-place betting interests. If there are no wagers correctly selecting the first- and second-place finishers, in their exact order, then exchange tickets shall be issued for combinations correctly selecting the first-place betting interest only. If there are no wagers selecting the first-place betting interest only in the first half of the Twin Superfecta, all first-half tickets will become winners and will receive 100% of that day's net Twin Superfecta pool and any existing Twin Superfecta carryover as a single price pool.

18. The Twin Superfecta carryover shall be designated for distribution on a specified date and performance only under the following circumstances:

a. Upon written approval from the Department as provided in subsection (Q)(15) of the Twin Superfecta rules.

b. Upon written approval from the Department when there is a change in the carryover cap or when the Twin Superfecta is discontinued.

c. On the closing performance of the meet or split meet.

19. If, for any reason, the Twin Superfecta carryover must be held over to the corresponding Twin Superfecta pool of a subsequent meet, the carryover shall be deposited in an interest-bearing account approved by the Department. The Twin Superfecta carryover plus accrued interest shall then be added to the second-half Twin Superfecta pool of the following meet on a date and performance so designated by the Department.

20. Providing information to any person regarding covered combinations, amounts wagered on specific combinations, number of tickets sold, or number of valid exchange tickets is prohibited. This shall not prohibit necessary communications between totalisator and pari-mutuel department employees for processing of pool data.

21. The permittee must obtain written approval from the Department concerning the scheduling of Twin Superfecta contests, the percentages of the net pool added to the first-half pool and second-half pool, and the amount of any cap to be set on the carryover. Any changes to the approved Twin Superfecta format require prior approval from the Department.

R. Grand Slam Pools

1. The Grand Slam requires selection of the Exacta, Trifecta, and Superfecta, respectively, in three consecutive contests. Each winning ticket for the first Grand Slam contest must be exchanged for a free ticket on the second Grand Slam contest in order to remain eligible for the second contest share of the Grand Slam pool. Such tickets may be exchanged only at attended ticket windows prior to the second Grand Slam contest. Winning Grand Slam tickets on the first race shall receive both an exchange and a monetary payoff. Each winning ticket for the second Grand Slam contest must be exchanged for a free ticket on the third Grand Slam Contest in order to remain eligible for the third contest share of the Grand Slam pool. Such tickets must be exchanged only at attended ticket windows prior to the third Grand Slam contest. Winning tickets on the second race shall receive both an exchange and a monetary payoff. The three designated Grand Slam contests shall be included in only one Grand Slam pool.

2. After wagering closes for the first contest of the Grand Slam and commissions have been deducted from the pool, the net pool shall be divided into three separate pools: the first contest pool (25%), the second contest pool (25%), and the third contest pool (50%).

3. In the first Grand Slam contest only, winning wagers shall be determined using the following precedence, based upon the official order of finish for the first Grand Slam contest:

a. If contestants of a coupled entry or mutuel field finish as the first two finishers, as a single price pool to those selecting the coupled entry or mutuel field combined with the next separate betting interest in the official order of finish; otherwise

b. As a single price pool to those whose combination finished in correct sequence as the first two betting interests; but if there are no such wagers, then

c. As a profit split to those whose combination included either the first-place betting interest to finish first or the second-place betting interest to finish second; but if there are no such wagers on one of those two finishers, then

d. As a single price pool to those whose combination included the one covered betting interest to finish first or second.

4. Winning tickets from the first contest of the Grand Slam shall be exchanged for tickets selecting the first three finishers of the second contest of the Grand Slam. The second contest pool shall be distributed to winning wagers in the following precedence, based upon the official order of finish for the second Grand Slam contest:

a. As a single price pool to those whose combination finished in correct sequence as the first three betting interests; but if there are no such wagers, then

b. The entire pool for the second and third contests shall be added to any existing carryover monies and retained for the third contest pool of the next performance.

5. Winning tickets for the second contest of the Grand Slam shall be exchanged for tickets selecting the first four finishers of the third contest of the Grand Slam. The third contest pool and any existing carryover monies shall be distributed to winning wagers in the following precedence, based upon the official order of finish for the third Grand Slam contest:

a. As a single price pool to those whose combination finished in correct sequence as the first four betting interests; but if there are no such wagers, then

b. The entire pool for the third contest shall be added to any existing carryover monies and retained for the corresponding third contest pool of the next performance.

6. If a winning Grand Slam ticket is not presented for cashing and exchange prior to the next Grand Slam contest, the ticket holder may still collect the monetary value associated with the corresponding pool but forfeits all rights to any distribution of subsequent Grand Slam pools.

7. Coupled entries and mutuel fields shall be prohibited in the second and third races of the Grand Slam.

8. Should a betting interest in the first contest of the Grand Slam be scratched, those Grand Slam wagers including the scratched betting interest shall be refunded.

9. Should a betting interest in the second or third contests of the Grand Slam be scratched, an announcement concerning the scratch shall be made and a reasonable amount of time shall be provided for exchange of tickets that include the scratched betting interest. If tickets have not been exchanged prior to the close of betting for the corresponding contest, the ticket holder forfeits all rights to the remainder of the Grand Slam pool.

10. If there is a dead heat or multiple dead heats in any of the contests of the Grand Slam, all Grand Slam wagers selecting the correct order of finish, counting a betting interest involved in a dead heat as finishing in any dead-heated position, shall be winners. Contrary to the usual practice, the aggregate number of winning tickets shall be divided into the net pool and paid the same price.

11. If any of the Grand Slam contests are cancelled prior to the first Grand Slam contest, or the first Grand Slam contest is declared "no contest," the entire Grand Slam pool shall be refunded on Grand Slam wagers for that contest and the remaining Grand Slam contests shall be cancelled. Any existing carryover monies pursuant to subsections (R)(4) and (5) of this rule shall carryover to the next consecutive racing program of that meeting.

12. If the second contest of the Grand Slam is canceled or declared "no contest," or if less than three contestants finish, the second contest pool of the Grand Slam shall be distributed equally among holders of second contest Grand Slam exchange tickets, and the third-contest pool of the Grand Slam shall carryover to the third-contest pool of the next performance.

13. If the third contest of the Grand Slam is canceled or declared "no contest" before the second contest has been made official but after the first contest (pursuant to subsection (R)(11) of this rule), that racing day's third-contest pool shall be distributed equally among holders of second-contest Grand Slam exchange tickets. If the third contest of the Grand Slam is cancelled or declared "no contest" after the second contest has been made official, that racing day's third contest shall be distributed equally among holders of the third-contest Grand Slam exchange tickets. In such instance, no carryover pool would be generated from that racing day.

14. If no distribution is made pursuant to subsection (R)(5)(a) of this rule, on the last day of the race meeting the permittee shall distribute the third-race pool and any existing carryover monies equally among the holders of exchange tickets selecting the finishing contestants in the third race. The net pool shall be distributed to winning wagers in the following precedence, based upon the official order of finish:

a. As a single price pool to those whose combination finished in correct sequence as the first three betting interests; but if there are no such wagers, then

b. As a single price pool to those whose combination included, in correct sequence, the first two betting interests; but if there are no such wagers, then

c. As a single price pool to those whose combination correctly selected the first-place betting interest only; but if there are no such wagers, then

d. As a single price pool to all holders of third-race tickets.

15. If there were no winning wagers in the second race of the Grand Slam on the last day of the race meeting, the permittee shall distribute the second-race pool and any existing carryover monies equally among the holders of exchange tickets selecting the finishing contestants in the second race. The net pool shall be distributed to winning wagers in the following precedence, based upon the official order of finish:

a. As a single price pool to those whose combination included, in correct sequence, the first two betting interests; but if there are no such wagers, then

b. As a single price pool to those whose combination correctly selected the first-place betting interest only; but if there are no such wagers, then

c. As a single price pool to all holders of second-race tickets.

16. If there were no winning wagers in the first race of the Grand Slam on the last day of the race meeting, the permittee shall distribute the first-race pool and any existing carryover monies as a profit split to the holders of tickets selecting either the first-place finisher to finish first or the second-place finisher to finish second. If there were still no winning wagers in the first race of the Grand Slam, such monies shall be distributed to all ticket holders.

17. Grand Slam tickets shall be issued in multiples of $1.00.

History

• Adopted effective October 21, 1993, under an exemption from the Administrative Procedure Act pursuant to A.R.S. § 41-1005(A)(18) (Supp. 93-4). Amended effective November 16, 1993, under an exemption from the Administrative Procedure Act pursuant to A.R.S. § 41-1005(A)(18); inadvertently omitted from Supp. 93-4 (Supp. 94-2). Typographical corrections made to subsections (F)(6), (P)(3)(d), and (P)(21) (Supp. 94-4). R19-2-523 recodified from R4-27-523 (Supp. 95-1). Amended effective July 3, 1996 (Supp. 96-3). Amended effective September 17, 1997, under an exemption from the Administrative Procedure Act pursuant to A.R.S. § 41-1005(A)(18) (Supp. 97-3). Amended by exempt rulemaking at 6 A.A.R. 786, effective February 1, 2000 (Supp. 00-1). Amended by final exempt rulemaking at 24 A.A.R. 2962, effective 9/28/2018.

Article 6 STATE BOXING AND MIXED MARTIAL ARTS COMMISSION: ADMINISTRATION OF UNARMED COMBAT SPORTS

Ariz. Admin. Code § R19-2-601 Renumbered

History

• New Section recodified from Section R4-3-415 at 5 A.A.R. 1175, April 23, 1999 (Supp. 99-2). Amended by final rulemaking at 7 A.A.R. 805, effective January 18, 2001 (Supp. 01-1). Section R19-2-601 renumbered to Section R19-2-A601 by final rulemaking at 24 A.A.R. 445, effective February 7, 2018 (Supp. 18-1).

Ariz. Admin. Code § R19-2-602 Renumbered

History

• New Section recodified from Section R4-3-416 at 5 A.A.R. 1175, April 23, 1999 (Supp. 99-2). Amended by final rulemaking at 7 A.A.R. 805, effective January 18, 2001 (Supp. 01-1). Section R19-2-602 renumbered to Section R19-2-A602 by final rulemaking at 24 A.A.R. 445, effective February 7, 2018 (Supp. 18-1).

Ariz. Admin. Code § R19-2-603 Renumbered

History

• New Section recodified from Section R4-3-417 at 5 A.A.R. 1175, April 23, 1999 (Supp. 99-2). Amended by final rulemaking at 7 A.A.R. 805, effective January 18, 2001 (Supp. 01-1). Section R19-2-603 renumbered to Section R19-2-B607 by final rulemaking at 24 A.A.R. 445, effective February 7, 2018 (Supp. 18-1).

Ariz. Admin. Code § R19-2-604 Renumbered

History

• New Section recodified from Section R4-3-418 at 5 A.A.R. 1175, April 23, 1999 (Supp. 99-2). Section repealed; new Sect ion adopted by fina l rulemaking at 7 A.A.R. 805, effective January 18, 2001 (Supp. 01-1). Section R19-2-604 renumbered to Section R19-2-B608 by final rulemaking at 24 A.A.R. 445, effective February 7, 2018 (Supp. 18-1).

Ariz. Admin. Code § R19-2-605 Renumbered

History

• New Section recodified from Section R4-3-419 at 5 A.A.R. 1175, April 23, 1999 ( Supp. 99-2). Former Section R19-2-605 repealed; new Section R19-2-605 renumbered from R19-2-609 and amended by final rulemaking at 7 A.A.R. 805, effective January 18, 2001 (Supp. 01-1). Section R19-2-605 renumbered to Section R19-2-C603 by final rulemaking at 24 A.A.R. 445, effective February 7, 2018 (Supp. 18-1).

Ariz. Admin. Code § R19-2-606 Renumbered

History

• New Section recodified from Section R4-3-420 at 5 A.A.R. 1175, April 23, 1999 ( Supp. 99-2). Former Section R19-2-606 repealed; new Section R19-2-606 renumbered from R19-2-610 and amended by final rulemaking at 7 A.A.R. 805, effective January 18, 2001 (Supp. 01-1). Section R19-2-606 renumbered to Section R19-2-C607 by final rulemaking at 24 A.A.R. 445, effective February 7, 2018 (Supp. 18-1).

Ariz. Admin. Code § R19-2-607 [Repealed]

History

• New Section recodified from Section R4-3-421 at 5 A.A.R. 1175, April 23, 1999 (Supp. 99-2). Section repealed by final rulemaking at 7 A.A.R. 805, effective January 18, 2001 (Supp. 01-1).

Ariz. Admin. Code § R19-2-608 [Repealed]

History

• New Section recodified from Section R4-3-422 at 5 A.A.R. 1175, April 23, 1999 (Supp. 99-2). Section repealed by final rulemaking at 7 A.A.R. 805, effective January 18, 2001 (Supp. 01-1).

Ariz. Admin. Code § R19-2-609 Renumbered

History

• New Section recodified from Section R4-3-423 at 5 A.A.R. 1175, April 23, 1999 (Supp. 99-2). Section renumbered to R19-2-605 by final rulemaking at 7 A.A.R. 805, effective January 18, 2001 (Supp. 01-1).

Ariz. Admin. Code § R19-2-610 Renumbered

History

• New Section recodified from Section R4-3-424 at 5 A.A.R. 1175, April 23, 1999 (Supp. 99-2). Section renumbered to R19-2-606 by final rulemaking at 7 A.A.R. 805, effective January 18, 2001 (Supp. 01-1).

Part A GENERAL ADMINISTRATION

Ariz. Admin. Code § R19-2-A601 Definitions and Interpretation Guidance

A. The following terms apply to this Article:

1. "Abdominal guard" means a protective device that is designed to protect the abdomen below the umbilicus, and the term includes a pelvic girdle for women designed to protect the pubic area, ovaries, coccyx, and sides of hips. Unless otherwise indicated herein, the term "abdominal guard" will include a "groin guard."

2. "Admission fee" means the charge paid to gain access to an unarmed combat event, as evidenced by a "ticket."

1. 3. "Annual bond" means the cash or surety bond, required under A.R.S. § 5-228(E), to be deposited with the Department by a promoter as a prerequisite for a promoter's license.

4. "Business entity" means any corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity except an individual or sole proprietorship.

5. "Combatant" means any person who practices the sport of unarmed combat in this state.

2. 6. "Commission" means the Arizona State Boxing and Mixed Martial Arts Commission, and staff delegated to provide support to the Commission. Unless otherwise stated, reference to the Commission includes the Executive Director.

7. "Contestant" means any combatant who is engaged in an unarmed combat contest or exhibition.

3. 8. "Department" means the Arizona Department of Gaming.

9. "Division" means the Arizona Department of Gaming, Racing Division.

"Event" means any unarmed-combat contest or exhibition for which tickets are issued and sold.

4. 11. "Event bond" means the cash or surety bond, authorized under A.R.S. § 5-229(B), which the Commission may require a promoter to deposit with the Department before each event.

12. "Executive Director" means the director appointed to execute the directions of the Commission.

13. "Exhibition" means any demonstration of technique or training in unarmed combat, which is attended by members of the public, including any such demonstration involving the sale of tickets or collection of admission fees.

14. "Groin guard" means a foul-proof athletic cup or other protection of the pubic area.

5. 15. "Gross receipts" means all gross receipts as defined by A.R.S. § 5-104.02(E).

16. "Industry" means all matters or business related to regulated unarmed-combat events.

17. "License" means any permit, license, approval, sanction, authority, registration, or other permission received from the Commission under these rules or Title 5, Chapter 2, Article 2. For purposes of these rules, a permit is equivalent to a license.

18. "Majority of rounds" means a sufficient number of completed rounds to render a decision via the score cards. For example, two completed rounds in a three-round bout, or three completed rounds in a five-round bout.

"Mismatch" means a pairing of unarmed combatants for a contest who have unequal ability. Factors to be considered in matching combatants include, but are not limited to:

a. Experience;

b. Training;

c. Fighting record;

d. Age;

e. Physical condition;

f. Height;

g. Weight;

h. Skill sets;

i. Arm or leg length; and

j. Any other differences in the ability of combatants that would create a competitive imbalance between them or that would render a match unsafe.

20. "MMA" means mixed martial arts as defined by A.R.S. § 5-221(8).

21. "Official" means a licensed referee, judge, timekeeper, ringside physician, or inspector.

22. "Permit" means any approval or license to conduct an event.

23. "Prohibited list" means the prohibited substance list published by the World Anti-Doping Agency ("WADA").

24. "Prohibited substance" means any substance, or class of substances, identified as prohibited on the prohibited list. Alcohol shall also be considered a prohibited substance regardless of whether it appears on the prohibited list.

25. "Ticket" means the tangible proof of the right to purchase admission to an event.

6. 26. "Ticket agent" means a person authorized by a promoter to print tickets.

7. 27. "Ticket vendor" means a person authorized by a promoter to sell tickets.

8. 28. "Tickets issued" means all tickets printed for an event.

29. "A.R.S. Title 5, Chapter 2, Article 2" means Arizona Revised Statutes ("A.R.S.") §§ 5-221 to 5-240, and any successor provisions.

30. "Unarmed combat" means any professional or amateur training, contest, or exhibition regulated by the Commission, whether or not conducted for profit, including boxing, kickboxing, MMA, Muay Thai fighting, or Toughman competition.

B. Wherever appropriate, and if not expressly indicated, words in the singular form shall be construed to include the plural and vice versa. Nouns and pronouns in masculine, feminine and neuter genders shall be construed to include any other gender.

C. Examples shall not be construed to limit, expressly or by implication, the matter they illustrate.

D. The word "includes" and its derivatives means "includes, but is not limited to" and corresponding derivative expressions.

History

• Amended and renumbered from R19-2-601 by final rulemaking at 24 A.A.R. 445, effective 2/7/2018.

Ariz. Admin. Code § R19-2-A602 Delegation by and Reports to the Commission

A. The Commission may delegate execution of its statutory powers and duties to the Executive Director.

B. The Executive Director shall regularly keep the Commission informed regarding those matters which have been delegated to the Executive Director by the Commission.

History

• Amended and renumbered from R19-2-602 by final rulemaking at 24 A.A.R. 445, effective 2/7/2018.

Part B EVENTS

Ariz. Admin. Code § R19-2-B601 Notice and Approval of Events; Publicity

A. A promoter's request to the Commission for reservation of an event date shall be made as soon as possible and shall be deemed by the Commission to be a representation by the promoter of the promoter's good faith intention to actually hold the event on that date. A promoter is prohibited from requesting event dates solely for the purpose of preempting the organization of an event by others on or near the scheduled event date or for any other anti-competitive reason, which may be demonstrated by a pattern of requesting and cancelling dates.

B. The Commission's approval of an event shall constitute a license to conduct, hold or give an unarmed combat event. A promoter shall not hold an event of unarmed combat unless:

1. No less than 60 calendar days before the event is held, the promoter submits to the Commission a written request for permission to hold the event, and for approval of the date for the event; and

2. The Commission has approved the request and the date for the event.

C. The Commission shall not approve an event scheduled to take place within 72 hours before a previously approved event in the same county, unless the second promoter compensates the first promoter or the Commission has determined that special circumstances exist. A promoter is required to have a commitment for an arena, and have advanced funds with respect to his or her scheduled event, in order for a promoter to have a date protected by the Commission in accordance with this rule.

D. Contracts signed by the combatants for the main event shall be filed with the Commission at least 72 hours prior to the date of the event. Contracts signed by the combatants for preliminary events shall be filed with the Commission 48 hours prior to the date of the event. Copies of all fully-executed contracts, on a form approved by the Commission, shall be filed with the Commission prior to the weigh-in.

E. Publicity for a scheduled event shall be factual and not misleading to the public. An event may not be publicized prior to approval of the event by the Commission. Tickets shall be priced and available as represented to the public. All promotion materials, both prior to and during an event, shall clearly designate the professional, amateur, or mixed status of the event.

F. The Commission shall not approve a scheduled event until the promoter discloses in writing all persons having a financial interest in the event, as defined in A.R.S. § 5-228(B), and otherwise complies with these rules insofar as they apply to promoters.

G. A written request for permission to hold an event shall include, without limitation:

1. The proposed site for the event;

2. A listing and description of all fights, with designation of all title fights to be held in the event;

3. A listing of the number of rounds per each fight, and number of contestants; and

4. If the event will be televised, the date and network on which the program will be premiered, and the date and network of second showings, if known.

H. The event permit fee required by the Commission, pursuant to R19-2-C603(C), shall be submitted with the application. The Commission shall return the fee if the permit is not approved. The failure of the promoter to notify the Commission of a cancellation at least 30 calendar days before the date of the event shall result in the forfeiture of the permit fee and may subject the promoter to disciplinary action, provided that, if the promoter is able to schedule another date that is acceptable to the Commission, the permit fee shall apply to the rescheduled event.

I. In determining whether to approve a permit for an event of unarmed combat, the Commission may take into account any factors that affect the best interests of the combatants, the state, the industry, and the Commission.

J. A promoter who wishes to present an event of unarmed combat for charitable purposes shall file with the Commission an application for a permit to present the event.

1. The application shall contain the name of the charity, charitable fund, or organization which is to benefit from the event, with evidence satisfactory to the Commission that the benefitted organization is recognized as exempt from federal income tax pursuant to the Internal Revenue Code of 1986, 26 U.S.C. § 501(c)(3), and the amount or percentage of the receipts of the event which is to be paid to the charity.

2. Within 10 days after such an event is held, the promoter shall furnish to the Commission a certified itemized statement of the receipts and expenditures in connection with the event and the net amount paid to the charitable fund or organization. If the promoter fails to file the statement within the prescribed time, the Commission:

a. May suspend or revoke the promoter's license, or impose a civil penalty; and

b. May thereafter refuse to issue a permit to the promoter for the holding of any event of unarmed combat for charitable purposes.

K. The Commission may waive any deadline requirements if good cause is shown and the Commission can accommodate the request.

L. If approval of events has been generally delegated to the Executive Director, the Executive Director may defer the approval of a specific event to the Commission.

History

• Amended by final rulemaking at 24 A.A.R. 445, effective 2/7/2018.

Ariz. Admin. Code § R19-2-B602 State Championships

A. The Commission may approve a contest as one for a state championship where:

1. One of the contestants is a bona fide resident of Arizona and the other is either:

a. Also a bona fide resident of Arizona; or

b. A resident of California, Nevada, Texas, Utah, Colorado, or New Mexico, who has fought in Arizona at least two times within the 12-month period prior to the time the Commission's approval is requested.

The contestants are qualified to fight for a state championship by virtue of demonstrated ability and record, and.

3. The contestants make the weight for the pertinent weight classification at the weigh-in.

B. The Commission shall determine how many rounds are appropriate for any state championship contests.

C. A contest may not be promoted as one for a state championship, or as a state championship elimination, without the prior consent of the Commission.

D. State championships shall be defended in Arizona.

E. The Commission may vacate a state championship title for violation of these rules.

History

• Amended by final rulemaking at 24 A.A.R. 445, effective 2/7/2018.

Ariz. Admin. Code § R19-2-B603 Duty of Matchmakers

A. Matchmakers shall use due diligence to determine and report to the Commission in writing, on a form to be provided by the Commission, no later than 48 hours prior to a scheduled event, the following information:

1. The true identity of contestants;

2. The contestant's complete record, including the date and result of the last contest engaged in by the contestant and any fight or medical records obtained from commissions in other states (the Commission has the discretion to disregard non-sanctioned bouts, in the interests of the industry or the health and safety of combatants);

3. Whether contestants are under suspension from any unarmed combat regulatory commission; and

4. The ability of the contestants to compete.

B. Matchmakers shall be held responsible for the making of mismatches. For the protection of contestants and the public, repeated making of mismatches is grounds for discipline, up to and including civil penalties and suspension or revocation of a matchmaker's license. The Commission reserves the right to disapprove any matches that are deemed by the Commission to be mismatches.

C. The matchmaker's cost of obtaining any fight or medical records from regulatory bodies in other states shall be charged back to the promoter unless the promoter has supplied the Commission with the requisite information.

D. Matchmakers shall verify that all matched fighters, trainers, seconds, or other persons involved in a proposed match are licensed in accordance with these rules.

History

• Amended by final rulemaking at 24 A.A.R. 445, effective 2/7/2018.

Ariz. Admin. Code § R19-2-B604 Insurance for Contestants

For each contestant, a promoter shall provide to the Commission proof of insurance that complies with A.R.S. § 5-233.

History

• Amended by final rulemaking at 24 A.A.R. 445, effective 2/7/2018.

Ariz. Admin. Code § R19-2-B605 Selection and Payment of Officials

A. Any referees, judges, timekeepers, ringside physicians, and inspectors shall be finally selected by the Commission and notice of the selections shall be provided to the promoter or matchmaker 36 to 48 hours prior to the scheduled event. The Executive Director shall ensure that all officials receive compensation from the promoter immediately after the last scheduled bout in accordance with the Commission's fee schedule. The fee schedule shall be made known to the promoter before the scheduled event when requested by the promoter.

B. A promoter or matchmaker may protest the assignment of officials only upon specific grounds submitted to the Commission in writing no less than 24 hours prior to the start of the scheduled event.

C. Referees shall be given a physical examination by the ringside physician before officiating a contest.

D. A promoter may be disciplined, up to and including license revocation, if rules of selection of officials and participants are not followed for an event.

1. Bouts may only be arranged by a promoter or a matchmaker licensed by the Commission.

2. Every combatant and announcer selected by the promoter shall be licensed by the Commission. The promoter's selection of announcer shall be approved by the Commission.

History

• Amended by final rulemaking at 24 A.A.R. 445, effective 2/7/2018.

Ariz. Admin. Code § R19-2-B606 Commission Seating at Events

As designated by the Executive Director, the promoter shall provide a table and front row or contiguous ringside seating for Commission members, the Executive Director, and those officials assigned to work the event, including the judges, timekeepers, ringside physicians, or other staff. Commission representatives or officials who will be working the event have priority for ringside seating with a table.

History

• Amended by final rulemaking at 24 A.A.R. 445, effective 2/7/2018.

Ariz. Admin. Code § R19-2-B607 Ticket Manifest, Collection, Accounting

A. General requirements.

1. Admission fees shall be charged for every unarmed-combat event. Tickets may also be sold for an exhibition if approved by the Commission.

a. The right of admission to any event of unarmed combat shall not be sold to a person unless that person is provided with a ticket.

b. Every ticket shall have the price, name and date of the event, and name of the promoter plainly stated on it. Every ticket stub shall state the price.

2. No admission fees shall be charged for any event until:

a. The promoter achieves compliance with occupant load, fire apparatus and exits, aisle spacing, and other building and fire code permissions or approval required by the relevant regulatory authorities, and provides verification of such approval to the Commission upon request; and

b. The Commission issues a permit for the event.

1. 3. No later than five days after the completion of an event, a promoter shall provide the Commission with an electronic ticket manifest or an accounting from each ticket agent as follows:

a. The manifest shall list the total number of tickets issued and the number of tickets in each price category. The manifest shall account for any tickets that are overprints, changes, or extras. The manifest shall be accompanied by a signed affidavit from the ticket agent or the ticket agent's designee, certifying that the manifest is accurate and complete.

b. If tickets issued are sold through a system that cannot produce an electronic manifest, an accounting from each ticket agent of the total number of tickets in each price category shall be provided. The accounting shall be accompanied by a signed affidavit from the ticket agent or the ticket agent's designee, certifying that the accounting is accurate and complete.

2. The ticket price shall be clearly printed on each ticket and ticket stub.

3. 4. A promoter shall ensure that tickets are distributed only through ticket vendors specified by the promoter. Notwithstanding the above, a promoter may provide tickets to contestants for sale to friends or family.

4. 5. The Commission shall, upon request, provide the Department with the names and contract information for all ticket agents and vendors.

B. Reduced-price tickets. A promoter shall ensure that the actual price of tickets sold for less than the printed price is plainly displayed by over-stamping or other mechanism on the printed face of the ticket and ticket stub, and the tickets are itemized correctly on the ticket manifest.

C. Complimentary tickets.

1. A promoter shall ensure that the total number of complimentary tickets does not exceed the maximum number of tickets specified under A.R.S. § 5-104.02(D). This maximum number shall be referred to as the "Cap."

2. Complimentary tickets in excess of the Cap are treated as non-complimentary and shall be subject to the levy on attendance under subsection (D).

3. If complimentary tickets are provided from different price categories, the amount of money that shall be exempt from the attendance levy (the "Total Exemption") shall be calculated in the order of highest to lowest priced tickets, as follows:

a. The Cap under Subsection (C)(1) shall be computed;

b. Highest-priced complimentary tickets are classified as Tier 1 tickets, and complimentary tickets in successively lower levels of price categories are classified as Tier 2 through Tier X, as needed;

c. If the Cap is less than the number of Tier 1 tickets, then the Total Exemption shall be equal to the Cap multiplied by the price of the Tier 1 tickets, and no further calculation need be made;

d. If the Cap is higher than the number of Tier 1 tickets, then the next highest Tier shall be applied, in whole or in part, to reach the Cap, and the calculation shall continue in that manner until the total Cap is met;

e. The number of complimentary tickets in each Tier used to satisfy the Cap shall be multiplied by the price of the tickets in that Tier to determine the Tier Exemption;

f. The Total Exemption for the event shall be the sum of Tier Exemptions.

3. 4. The word "Complimentary" shall be plainly displayed on complimentary tickets and ticket stubs.

D. Ticket accounting and levy payment. Representatives of the promoter and Commission shall meet within 10 days after an event to account for all tickets sold and pay the required attendance levy.

1. The promoter shall provide the Commission with the following information on the Commission's attendance levy form:

a. The number of tickets sold and unsold in each price category;

b. The amount of the gross receipts calculated using the printed price on each ticket sold; and

c. The signature of the promoter, certifying that the information is true and correct.

2. The Commission shall consider as sold any tickets listed as issued, but not reported as being unsold.

3. The promoter shall pay the Department an attendance levy of 4% of the gross receipts after the deduction of city, state, and federal taxes, of the event.

History

• Amended by final rulemaking at 24 A.A.R. 445, effective 2/7/2018.

Ariz. Admin. Code § R19-2-B608 Annual Bond, Event Bond, Claims

A. Annual bond under A.R.S. § 5-228(E).

1. The approval of a promoter's license is contingent upon deposit of the annual bond with the Department.

2. Upon written request of the promoter, the Commission may release the promoter from the annual bond requirement, if the Commission determines that the promoter has satisfied all past obligations and is not planning additional events for that year.

B. Event bond under A.R.S. § 5-229(B).

1. The Commission shall notify the promoter in writing of the imposition and amount of an event bond and the promoter shall deposit the bond with the Commission no later than 48 hours prior to the event. The Commission shall retain the event bond until the promoter has satisfied all obligations for the event, at which time the Commission shall return the bond to the promoter.

2. Upon receipt of written notice from the Commission that the promoter's obligations for an event are satisfied, the Department shall return the bond to the promoter.

3. 2. If an event is not held, the promoter shall notify the Commission, not later than 22 business days after the scheduled event, whether the promoter's obligations for the event have been satisfied, at which time the promoter's event bond can be returned.

C. Commission claim. If a promoter fails to comply with payment of the attendance levy on gross receipts under R19-2-B607(D), the Commission shall notify the promoter and the Department. Notification to the promoter shall be made by registered or certified mail, return receipt requested, and shall state that:

a. 1. The unpaid levy on gross receipts shall be paid within 10 business days from receipt of the notice; and

b. 2. If the payment is not received within the 10 business days, forfeiture proceedings against the bond may be initiated based on the Commission's determination of whether a promoter's obligations have been faithfully performed.

2. The Commission if a promoter fails to pay the required tax on gross receipts.

D. The Department and Commission shall not release any bond for which a claim is pending.

History

• Amended by final rulemaking at 24 A.A.R. 445, effective 2/7/2018.

Ariz. Admin. Code § R19-2-B609 Payment of Contestants

A. All contestants shall be paid in full according to their contracts, and no part or percentage of their remuneration may be withheld except by order of the Commission, nor shall any part of their remuneration be returned through arrangement with the combatant or the combatant's manager to any matchmaker or promoter.

B. Payment shall be made immediately after the event under the supervision of a Commission representative.

C. In cases where the Commission does not require an event bond, the promoter shall execute an assignment in favor of the Commission of box office proceeds to the extent necessary to secure the payment of purses. Such assignment is a condition precedent to the approval of an event. When all contestants have been paid, the assignment shall be returned to the promoter and the promoter shall be released therefrom.

History

• Amended by final rulemaking at 24 A.A.R. 445, effective 2/7/2018.

Part C LICENSING AND DISCIPLINE

Ariz. Admin. Code § R19-2-C601 Licensing, General Requirements

A. An application for a license for every industry combatant, promoter, matchmaker, inspector, manager, second, including trainers and cutmen, referee, judge, timekeeper, announcer, or physician, shall be made in writing on a form supplied by the Commission and signed by the applicant under penalty of perjury. The Commission shall accept electronic signatures on applications, which may include faxed signatures, electronic facsimiles of signatures, or any other electronic methods that comply with state policy and are designed to facilitate the application process for the public. The Commission, in its discretion, may act on an applicant's request for a license before the form is submitted, but a license shall not be issued to the applicant until the applicant complies with the licensing requirements pursuant to this Section. Issuance of a license is in the reasonable discretion of the Commission.

B. Every combatant shall be licensed prior to participating in any event, with the exception of those individuals excluded under A.R.S. § 5-222.

C. All licenses shall expire on December 31 at midnight on the year of their issuance and each licensee has the responsibility to apply for renewal prior to such expiration. A combatant may petition the Commission for waiver of medical licensing requirements upon renewal if the combatant fulfilled those requirements within 90 days prior to December 31.

D. Before issuing a license, the Commission or its staff may require an applicant to provide independent proof of the applicant's true identity, fingerprints, and other material information requested on the license application or otherwise required by the Commission.

E. An applicant for an official's license shall submit to the Commission a signed copy of the Commission's Code of Ethics and Conduct for the type of license being sought, acknowledging that the applicant has read and understands the Code, and agrees to comply with its terms.

F. Each license issued is subject to the conditions and agreements set forth in the application.

G. The applicant shall demonstrate to the satisfaction of the Commission an understanding of the Commission's drug testing program, including, without limitation, an understanding of anti-doping violations and the penalties for those violations.

H. The Commission may require an applicant to appear before the Commission to answer questions or provide documents in conjunction with an application for a license.

I. Expenses necessarily incurred by the Commission in the investigation of an applicant shall be charged back to the applicant.

J. The Commission may take disciplinary action or refuse to issue or renew a license for those reasons stated in A.R.S. § 5-235.01, or if the applicant:

1. Has violated any industry laws or regulations of any other state;

2. Does not possess a good reputation or moral character, or demonstrates a lack of honesty, ethics, or moral character so as to reflect discredit to the industry and thereby render adverse action consistent with the public interest and the purpose of A.R.S. Title 5, Chapter 2, Article 2, and these rules adopted thereunder;

3. Has an industry license that has previously been suspended, revoked, or denied in this or other jurisdictions;

4. Does not, in the sole discretion of the Commission, possess the health, fitness or skills to safely participate in the industry;

5. Has committed any actions that would be grounds for discipline under R19-2-C605 ; or

6. Is not qualified to be granted a license or permit, based on the best interest of the safety, welfare, economy, health, and peace of the industry or the people of the state of Arizona.

K. A manager need not obtain a manager's license if the manager is not a resident of Arizona and comes into Arizona for the sole purpose of working the corner of the manager's combatant. A second's license is sufficient.

L. A licensed manager may act as a second.

M. A manager or promoter contract shall not be recognized by the Commission as valid unless the parties to the contract are licensed. Such contracts shall be in a format approved by the Commission.

N. Prior to licensing, a promoter or matchmaker shall provide to the Commission:

1. A copy of any agreement with a combatant that binds the applicant to pay a fixed fee or percentage of gate receipts to the combatant;

2. If a business entity, a list of all persons who control 25% or more of the entity;

3. If a corporation, a copy of the latest financial statement of the entity; and

4. A copy of the insurance contract required by A.R.S. Title 5, Chapter 2, Article 2.

History

• Amended by final rulemaking at 24 A.A.R. 445, effective 2/7/2018.

Ariz. Admin. Code § R19-2-C602 Licensing Time-Frames

A. Overall time-frame. The Commission shall issue or deny a license within the overall time-frames listed in Table 1 after receipt of the complete application. The overall time-frame is the total of the number of days provided for the administrative completeness review and the substantive review.

B. Administrative completeness review.

1. The applicable administrative completeness review time-frame established in Table 1 begins on the date the Commission receives the application. The Commission shall notify the applicant in writing within the administrative completeness review time-frame whether the application or request is incomplete. The notice shall specify what information is missing. If the Commission does not provide notice to the applicant, the license application shall be considered complete.

2. An applicant with an incomplete license application shall supply the missing information within the completion request period established in Table 1. The administrative completeness review time-frame is suspended from the date the Commission mails the notice of missing information to the applicant until the date the Commission receives the information.

3. If the applicant fails to submit the missing information before expiration of the completion request period, the Commission shall close the file, unless the applicant requests an extension. An applicant whose file has been closed may submit a new application.

C. Substantive review. The substantive review time-frame established in Table 1 begins after the application is administratively complete.

1. If the Commission makes a comprehensive written request for additional information, the applicant shall submit the additional information identified by the request within the additional information period provided in Table 1. The substantive review time-frame is suspended from the date the Commission mails the request until the information is received by the Commission. If the applicant fails to timely provide the information identified in the written request, the Commission shall consider the application withdrawn.

2. The Commission shall issue a written notice granting or denying a license within the substantive review time-frame. If the application is denied, the Commission shall send the applicant written notice explaining the reason for the denial with citations to supporting statutes or rules, the applicant's right to seek a fair hearing, and the time period in which the applicant may appeal the denial.

History

• Amended by final rulemaking at 24 A.A.R. 445, effective 2/7/2018.

Ariz. Admin. Code § R19-2-C603 License Fees

A. The following applicants shall complete an authorized fingerprint card and pay a fingerprint processing fee per A.R.S. § 41-1750(G)(2) and (J): inspectors, ringside physicians, judges, timekeepers, referees, managers, matchmakers, and promoters.

B. Fees for the issuance of annual licenses shall be as follows:

1. Promoters, $400;

2. Matchmakers, $125;

3. Managers, $100;

4. Inspectors, judges, referees, timekeepers, announcers, and ringside physicians, $30;

5. Cutmen, professional combatants, trainers, and seconds, $25; and

6. Amateur combatants, $10.

C. At the time an event permit request is submitted for Commission approval, the following fees for events shall be paid to the Commission:

1. $750 for non-live televised events at a venue seating 5000 persons or less;

2. $1500 for:

a. Non-live televised events at a venue seating more than 5000 persons;

b. Events streamed live for a charge on Facebook or other equivalent Internet broadcast; and

c. Live televised events on cable or satellite television;

3. $2000 for live televised events on cable or satellite television that include a recognized world title bout (e.g., WBA, WBC, IBF, WBO, UFC, IBO); and

$4000 for live pay-per-view events on cable or satellite television (e.g., HBO, Showtime).

5. If an event has been previously approved by the Commission, any time an event date change request is submitted for Commission approval, an additional fee of $250 shall be paid to the Commission.

6. The Commission may establish a fee not to exceed $2000 for an event that is not within the categories set forth in subsections (C)(1) through (4). If a fee is initially paid for a type of event and that event type later changes to a higher fee category, the promoter shall pay the difference in fees prior to the event date.

A. D. The Commission shall forward license fees to, or deposit them in the account of, the Department within five business days of receipt with the following information:

1. The type of license issued;

2. The name and date of birth of the licensee;

3. The license number; and

4. The date and amount of payment received and/or deposited.

B. E. The Commission shall retain a current list of the licenses issued and the additional applicable licensing information and make the information available to the Department.

F. Licensing fees shall be waived for those persons who qualify for exemption under A.R.S. § 41-1080.01. For purposes of waiving licensing fees under A.R.S. § 41-1080.01:

1. The costs for background checks and fingerprint processing shall not be waived;

2. Any fees that are waived shall be fully reimbursed to the Division or Department if investigation indicates the applicant does not qualify for waiver;

3. Licensing fees may only be waived if the applicant complies with the process established by the Commission to determine eligibility and the request for waiver is submitted at the same time that the application is submitted;

4. A first-time application shall mean the first application for any license and not the first application for each separate category of license.

History

• Amended and renumbered from R19-2-605 by final rulemaking at 24 A.A.R. 445, effective 2/7/2018.

Ariz. Admin. Code § R19-2-C604 Licensing Requirements Related to Ability and Fitness

A. Age and physical condition of combatant applying for license.

1. Prior to issuance or renewal of a license, an applicant for a license to engage in unarmed combat shall be examined by a physician approved by the Commission, and satisfy the Commission that the applicant has the ability to compete, if the applicant:

a. Reached 36 years of age or will reach 36 years of age during the licensing year;

b. Has not competed in unarmed combat for at least 36 consecutive months; or

c. Has any medical, physical or mental unfitness that could affect the applicant's safety or welfare if the applicant were licensed.

2. The Commission may revoke, suspend, or refuse to issue or renew the license of any combatant because of injury or unfitness that could affect the safety or welfare of the licensee or other industry participants. The combatant's license shall be reinstated when and if the Commission, in its sole discretion, determines that the injury or unfitness has been resolved. The Commission may consult with a physician selected by the Commission in making this determination.

3. The Commission shall not issue or renew a license to engage in unarmed combat to an applicant or combatant who is found to be blind in one eye or whose vision in one eye is so poor that a physician recommends that the license not be granted or renewed. This rule applies regardless of how good the vision of the applicant or combatant may be in the other eye.

4. Together with the medical exams required by A.R.S. § 5-228(F)(1) - (5), an applicant shall submit to testing as follows:

a. Before the Commission issues a license, the applicant shall undergo a base-line concussion examination conducted or supervised by a physician who is licensed pursuant to A.R.S. Title 32, Chapter 13 or 17. The base-line concussion examination shall consist of any neurological testing protocol approved by the American Academy of Neurology, that includes the following tests, or the reasonable and recognized equivalent to the following tests:

i. A Post-Concussion Symptom Scale (PCSS), to determine if the applicant is exhibiting any current symptoms that may be related to concussion;

ii. A recognized quantitative test of cognition, such as the Cogstate Computerized Cognitive Assessment Tool (CCAT), ImPACT, or the Standardized Assessment of Concussion (SAC);

iii. A recognized quantitative test of oculomotor function, such as the King-Devick Test;

iv. A recognized quantitative test of balance, such as the Balance Error Scoring System (BESS), the Rhomberg test, pronator drift, or the timed tandem gait test.

b. Every ringside physician, trainer, second, or cutman present at an event, and every trainer present at a practice session, has the responsibility of acting as a "spotter" and notifying the Commission if the spotter reasonably suspects that a combatant has suffered a head injury or concussion. A spotter's knowing failure to notify the Commission of a suspected head injury or concussion of a combatant shall result in discipline, up to and including revocation. A spotter who, in good faith, reports a suspected head injury or concussion shall be immune from civil liability with respect to all decisions made and actions taken that are based on good faith implementation of the requirements of this subsection, except in cases of gross negligence, intentional misconduct, or wanton or willful neglect. A referee or a ringside physician shall be responsible for stopping a bout if he or she suspects that a combatant has a head injury or concussion.

c. The license of every combatant who is suspected of having a head injury or concussion shall be suspended until he or she undergoes a post-injury concussion assessment, and is able to provide to the Commission clearance from his or her treating neurologist that the combatant is cleared to resume participation in the sport of unarmed combat. The post-injury concussion assessment shall consist of the same testing used to perform the base-line concussion examination required above, and shall be compared to the base-line test to determine the concussion status of the combatant.

5. The Commission may hold a hearing to determine whether the license should be denied, granted or renewed, or granted or renewed on a conditional basis, in view of the applicant's ability and fitness.

6. All combatants shall have attained their 18th birthday before being licensed.

B. Drug testing and anti-doping.

1. It is the duty of each combatant to ensure that no prohibited substance enters the combatant's body, and a combatant is strictly liable for the presence of any prohibited substance or its metabolites or markers found to be present in the combatant's sample or specimen. To establish a violation of this Section, it is not necessary to establish that the combatant intentionally, knowingly or negligently used a prohibited substance or that the combatant is otherwise at fault for the presence of the prohibited substance or its metabolites or markers found to be present in the combatant's sample or specimen.

At any time upon request by the Commission or its representative, whether in or out of competition, a combatant shall submit to a drug test.

a. A test of any sample or specimen of a combatant may be performed by a laboratory approved by the Commission or a laboratory approved and accredited by the World Anti-Doping Agency. Approval by the Commission will be based, in part, on whether the laboratory has implemented the International Standard for Laboratories and the Decision Limits for the Confirmatory Quantification of Threshold Substances .

b. The sample or specimen taken for testing will be referred to as the primary sample. The combatant may request that another sample be collected and preserved, which shall be referred to as the secondary sample.

3. A combatant who utilizes, applies, ingests, injects, or consumes by any means, or attempts to utilize, apply, ingest, inject, or consume by any means, a prohibited substance or prohibited method, whether successful or not, commits an anti-doping violation and is subject to disciplinary action by the Commission. An anti-doping violation is established when:

a. Analysis of either the primary or secondary sample indicates that one or both of the samples contains any quantity of a prohibited substance or its metabolites or markers, even if the results of testing on both samples is not identical regarding the amount.

b. A combatant, without compelling justification, refuses or fails to submit to the collection of a sample or specimen upon the request of the Commission or its representative or who otherwise evades the collection of a sample or specimen.

c. An in-competition combatant possesses any prohibited substance or prohibited method, or an out-of-competition combatant who possesses any prohibited substance or prohibited method which is prohibited out of competition.

4. A combatant does not violate the provisions of this Section if:

a. The quantity of the prohibited substance or its metabolites or markers found to be present in the combatant's sample or specimen does not exceed the threshold established in the prohibited list for the prohibited substance or its metabolites or markers.

b. The special criteria in the prohibited list for the evaluation of a prohibited substance that can be produced endogenously indicate that the presence of the prohibited substance or its metabolites or markers found to be present in the sample or specimen of the combatant is not the result of the combatant's use of a prohibited substance.

c. If one sample is conclusively positive and one is conclusively negative, and there is no reasonable explanation for the variance.

5. A combatant commits an anti-doping violation and is subject to discipline by possessing any prohibited substance or prohibited method in or out of competition. Any other licensee who possesses a prohibited substance or prohibited method and who is in direct contact with a combatant at the time of possession, has also committed an anti-doping violation.

6. For the purposes of this Section, "possession" means actual physical or constructive possession of the prohibited substance or prohibited method. "Constructive possession" means exclusive control or the intent to exercise exclusive control over a prohibited substance or prohibited method or the premises on or in which a prohibited substance or prohibited method is located.

7. The following are anti-doping violations if committed by any means, and will subject a licensee to discipline:

a. Supervise, facilitate, or participate in the use of a prohibited substance or prohibited method by another person;

b. Sell, give, transport, send, deliver, or distribute a prohibited substance or prohibited method to another person; or

c. Possess with the intent to sell, give, transport, send, deliver, or distribute a prohibited substance or prohibited method to another person.

8. A physician or other bona fide medical personnel who provides or supplies a prohibited substance or prohibited method to a combatant, or who supervises, facilitates or otherwise participates in the use or attempted use of a prohibited substance or prohibited method by a combatant, for genuine and legal therapeutic purposes or any other purposes deemed appropriate by the Commission, is not in violation of this Section.

9. The Commission will report any violation of this Section that also violates any other law or regulation of this state to the appropriate law enforcement, administrative, professional or judicial authority.

10. A combatant may obtain a therapeutic use exemption from an anti-doping violation by submitting to the Commission an application and any medical information the Commission deems necessary to determine whether to grant the therapeutic use exemption. The Commission may grant a therapeutic use exemption if the medical information provided demonstrates that the therapeutic use will not confer an unfair advantage or disadvantage on the combatant, in the sole discretion of the Commission.

a. The Commission will not grant:

i. A therapeutic use exemption that applies to a contest or exhibition in which the applicant has already participated; or

ii. A therapeutic use exemption for testosterone replacement therapy or any similar therapy designed to induce or stimulate testosterone replacement.

b. A therapeutic use exemption granted by the Commission pursuant to this Section is valid until the end of the calendar year in which it was granted, and may be renewed at the time that a combatant applies for the issuance or renewal of his or her license or at such time as the Commission determines.

11. If the Commission grants a therapeutic use exemption to a combatant, the combatant, a person who is licensed, approved, registered or sanctioned by the Commission, and any other person associated with unarmed combat in this state who acts consistently with the therapeutic use exemption, does not commit an anti-doping violation set forth under this rule.

History

• Amended by final rulemaking at 24 A.A.R. 445, effective 2/7/2018.

Ariz. Admin. Code § R19-2-C605 Grounds for Disciplinary Action; Penalties

A. Disciplinary action against a person licensed by the Commission, or otherwise associated with unarmed combat in this state, may include denial, revocation, or suspension of license; ban on participation; imposition of a civil penalty; forfeiture of all or part of a purse; altering the result of a bout; or any combination of such actions as may be appropriate under the aggravating or mitigating circumstances.

B. A licensee shall be held responsible for knowing these rules and the provisions of A.R.S. Title 5, Chapter 2, Article 2 related to unarmed combat.

C. In addition to those grounds listed in A.R.S. § 5-235.01(B), grounds for disciplinary action are:

Violation of an order of the Commission;

2. Breach of an industry contract;

3. Where the licensee's conduct is lacking in honesty, ethics, or moral character so as to reflect discredit to the industry and thereby render disciplinary action consistent with the public interest and the purpose of A.R.S. Title 5, Chapter 2, Article 2 and these rules;

4. Where the licensee has been disciplined in another jurisdiction, if the disciplinary action is ordered for conduct which relates to safety, would be a violation in this state, or tends to reflect negatively on the reputation of this state or the industry;

5. Where the licensee had knowledge or, in the judgment of the Commission, should have had knowledge that a combatant suffered a concussion or serious injury during training or an event and the licensee failed or refused to inform the Commission of that knowledge; or

6. Where the licensee has committed any actions that would be grounds for denial of license under R19-2-C601.

History

• Amended by final rulemaking at 24 A.A.R. 445, effective 2/7/2018.

Ariz. Admin. Code § R19-2-C606 Effect of Discipline

A. Every promoter and matchmaker shall take notice of the suspensions or revocations listed on registries recognized by the Commission and shall not permit any person under suspension or revocation to participate in, arrange, or conduct events during the period of suspension or revocation.

B. A person whose license has been denied, suspended or revoked by the Commission is prohibited from participating in, matchmaking, or holding events during the period of denial, suspension or revocation.

C. A person whose license has been suspended or revoked is barred from:

1. The dressing rooms at the premises where any event of unarmed combat is being held;

2. Occupying any seat within six rows of the ring platform or cage; and

Communicating in the arena or near the dressing rooms with any of the event principals, their managers, their seconds, or the referee, whether directly or by a messenger, during any event.

D. A person who violates a provision of this subsection may be ejected from the arena or building where the event is being held, and the price paid for his or her ticket shall be forfeited. Thereafter, the person is barred entirely from all premises used for events during the contest or exhibition.

E. A manager who is revoked or under temporary suspension is considered to have forfeited all rights in this state under the terms of any contract with a combatant licensed by the Commission. Any attempt by a suspended manager to exercise those contract rights in this state shall result in a revocation of the manager's license. The Commission may also revoke a license of any combatant, matchmaker, or promoter who continues to engage in any contractual relations with a revoked or suspended manager within the state of Arizona.

F. A combatant whose manager has been suspended or revoked may continue competing independently during the term of that suspension or revocation, by personally negotiating and signing the combatant's event contracts or entering into contracts with other managers. Payment of the earnings of a combatant may not be made by any promoter to a manager who is under suspension, or to the manager's agent. Instead the purse must be paid in full to the combatant.

G. Unless otherwise specified in these rules, any applicant who has been denied a license or whose license has been suspended or revoked by the Commission shall not file a new application or application for reinstatement until one year after the date of the denial, revocation, or suspension (unless the suspension has been lifted by the Commission prior to expiration of the license) and the applicant has paid in full all fees and fines imposed on the applicant by the Commission. The Commission may require a person who has had his or her license suspended for any period because of an anti-doping violation to submit to the Commission documentation satisfactory to the Commission that indicates that a test performed on a sample or specimen obtained from the person did not indicate the presence of a prohibited substance or the use of a prohibited method. Documentation would be unsatisfactory if the documentation creates articulable suspicion that the test may not be valid. Examples of unsatisfactory documentation include:

1. Documentation from a laboratory that does not meet the standards of R19-2-C604(B)(2)(a) ; and

2. Documentation that does not establish sufficient controls to eliminate the potential of tampering with samples or specimens.

H. The expiration of, or failure to obtain, a license from the Commission does not deprive the Commission of jurisdiction to:

Proceed with an investigation of any person associated with unarmed combat in this state;

2. Proceed with an action or disciplinary proceeding against any person associated with unarmed combat in this state;

3. Render a decision to suspend or revoke the license, approval, registration or sanctioning, or the privilege to obtain such license, approval, registration or sanctioning, as applicable; or

Otherwise discipline any licensee, person approved, registered or sanctioned by the Commission, or any person otherwise associated with unarmed combat in this state, including, without limitation, banning such a person from participation in unarmed combat in this state for any period of time, including, without limitation, a lifetime ban from participation in unarmed combat in this state.

History

• Amended by final rulemaking at 24 A.A.R. 445, effective 2/7/2018.

Ariz. Admin. Code § R19-2-C607 Civil Penalties

A. The Commission shall notify the Department in writing if a licensee is issued a civil penalty under A.R.S. § 5-235.01(A)(3) or (C).

B. Upon receipt, the Commission shall immediately forward the civil penalty to the Department for deposit.

C. Failure to pay a civil penalty of any kind shall result in a suspension of a license until the penalty is paid.

History

• Amended and renumbered from R19-2-606 by final rulemaking at 24 A.A.R. 445, effective 2/7/2018.

Ariz. Admin. Code § R19-2-C608 Appeal, Rehearing, or Review of Decision

A. Except as provided in subsection (I), any party in a contested case before the Commission who is aggrieved by a decision rendered in such case by the Executive Director may file with the Commission, not later than 10 days after service of the decision, a written motion for appeal of the decision specifying the particular grounds therefor. For purposes of this subsection, a decision shall be deemed to have been served when personally delivered or mailed by certified mail to the party at the party's last known residence or place of business; or by electronic mail if the party has agreed to receive electronic notifications.

B. An appeal, or a motion for rehearing or review under this rule may be amended at any time before it is ruled upon. A party shall provide a copy of any pleading on all opposing parties or parties who may be directly affected by the issues presented, and the pleading shall contain a certification of delivery to listed recipients. A response may be filed by any other party within 10 days after delivery of such pleading on the other party. The Commission may require the filing of written briefs upon the issues raised in the motion and may provide for oral argument.

C. The Commission may affirm or modify the decision, or grant a rehearing to all or any of the parties, on all or part of the issues for any of the following reasons materially affecting the moving party's rights:

1. Irregularity in the administrative proceedings that causes the moving party to be deprived of a fair hearing;

2. Misconduct of the Commission or its hearing officer or the prevailing party;

3. Accident or surprise that could not have been prevented by ordinary prudence;

4. Newly discovered material evidence that could not, with reasonable diligence, have been discovered and produced at the original hearing;

5. Excessive or insufficient penalties;

6. Error in the admission or rejection of evidence or other errors of law occurring at the administrative hearing or during the progress of the proceedings; or

7. The decision is not justified by the evidence or is contrary to law.

D. If a rehearing is granted, the Commission may hear the case or may refer the case to the Office of Administrative Hearings. The decision of the administrative law judge becomes the decision of the Commission unless rejected or modified by the Commission in accordance with A.R.S. Title 41, Chapter 6, Article 10. A decision of the Commission at this level of review is a final decision.

E. Except for a decision under subsection (I), a rehearing or review of the final Commission decision shall be requested in order for the aggrieved party to have the right to appeal under A.R.S. Title 12, Chapter 7, Article 6. The Commission shall rule on the motion for rehearing or review within 15 days after the response to the motion is filed or at the Commission's next meeting after the motion is received, whichever is later.

F. Not later than 10 days after a decision is rendered, and after giving the parties or their counsel notice and an opportunity to be heard on the matter, the Commission may, on its own initiative, order a rehearing or review of its decision for any reason for which it might have granted a rehearing on motion of a party.

G. Any order granting a rehearing shall specify with particularity the ground or grounds on which the rehearing is granted, and the rehearing shall cover only those matters so specified.

H. When a motion for rehearing is based upon affidavits, they shall be served with the motion. An opposing party may, within 10 days after such service, serve opposing affidavits, which period may be extended by the Commission for an additional period not exceeding 20 days for good cause shown or by written stipulation of the parties. Reply affidavits may be permitted.

I. If, in a particular decision, the Commission makes specific findings that the immediate effectiveness of such decision is necessary for the immediate preservation of the public peace, health, and safety and that a rehearing or review of the decision is impracticable, unnecessary, or contrary to the public interest, the decision may be issued as a final decision without an opportunity for a rehearing or review. If a decision is issued as a final decision without an opportunity for rehearing, any application for judicial review of the decision shall be made within the time limits permitted for applications for judicial review of the Commission's final decisions under A.R.S. Title 12, Chapter 7, Article 6.

J. For purposes of this Section, the terms "contested case" and "party" shall be defined as provided in A.R.S. § 41-1001.

K. To the extent that the provisions of this rule are in conflict with the provisions of any statute providing for rehearing of decisions of the Commission, such statutory provisions shall govern.

L. The Commission may deny a petition or application that is not filed in accordance with this Section without a hearing.

M. The final result of an unarmed combat bout, even if based upon errors of judgment of the referee or the judges, shall not be overturned or modified by the Commission unless there is substantial evidence that the following have occurred:

1. The compilation of the scorecards of the judges shows an error if such error would result in the win being given to the wrong contestant; or

2. There has been fraud or collusion affecting the result.

History

• Amended by final rulemaking at 24 A.A.R. 445, effective 2/7/2018.

Ariz. Admin. Code § R19-2-C609 Registration of Amateur Sanctioning Organizations: Requirements; Application; Fees; Revocation, Suspension or Setting Conditions

A. All sanctioning organizations that are required to be approved under A.R.S. § 5-222(A)(4) shall be registered with the Commission. A sanctioning organization that is required to be registered shall submit to the Commission:

1. A completed application for registration on a form provided by the Commission;

2. A complete set of rules adopted by the sanctioning organization to govern the particular discipline, which must be substantially equivalent to the rules of this Article 6 with regard to safety of the combatants; and

3. An application or renewal fee of $1,000.

B. A sanctioning organization that is required to be registered may have its registration denied, revoked, suspended, or conditioned by the Commission for:

Failing to provide information as requested by the Commission or the Executive Director;

2. Failing to establish or follow its own complete set of rules;

3. Failure to dismantle and remove all equipment, ring, cage, and seating upon conclusion of an event; or

4. Any other cause for the revocation, suspension or conditioning of a license set forth in A.R.S. Title 5, Chapter 2, Article 2, and these rules adopted thereunder.

C. A sanctioning body that is required to be registered shall not participate, directly or indirectly, in any amateur event of unarmed combat if registration is not obtained.

D. The Commission may approve one amateur sanctioning organization for each Muay Thai discipline. The Commission may limit, deny, suspend, or revoke registration of a separate organization, if the Commission, in its sole discretion, determines registration of the organization is not in the best interest of the industry.

E. The Commission may waive the requirements of subsections (A), (B), (C), and (D).

F. The provisions of this Section do not apply to professional Muay Thai events, which shall be sanctioned by the Commission, or to a professional Muay Thai promoter whose license is issued by the Commission and who is in good standing.

History

• Amended by final rulemaking at 24 A.A.R. 445, effective 2/7/2018.

Part D UNARMED COMBAT RULES

Ariz. Admin. Code § R19-2-D601 General Provisions for All Unarmed Combat Disciplines

A. Applicability of requirements/alteration. This Section shall apply to all regulated unarmed combat disciplines, unless otherwise noted herein. In case of a conflict between this general Section and a provision relating to a specific discipline, the specific provision shall control. The Commission may approve the alteration of requirements of Part D if it is determined that the alteration is dictated by the event venue or by nationally-accepted rules and that the alteration will not compromise the safety of the combatants. If the rules regarding a specific unarmed combat discipline do not adequately cover an issue pertinent to that discipline, the Commission may refer to and use rules applicable to a different unarmed combat discipline as guidance.

B. Time between bouts. Unless special approval is obtained from the Commission, a contestant shall not be allowed to compete until the following time periods have elapsed:

1. Five days, if the contestant has competed anywhere in a bout of six rounds or less; or

2. Ten days, if the contestant has competed anywhere in a bout of more than six rounds.

C. Dressing rooms. The promoter shall provide contestants with dressing rooms or areas which shall be equipped with showers, be sanitary, safe, ventilated, and have sufficient seating. Separate dressing rooms shall be provided for contestants of separate genders.

D. Mouthpiece.

1. During competition, each contestant is required to wear a mouthpiece that has been fitted to the contestant's mouth. The mouthpiece shall be subject to examination by and approval of the referee. A round cannot begin without the mouthpiece in place.

2. If the mouthpiece is dislodged or spit out during the course of a round, the referee shall call time at the first opportune moment without interfering with the immediate action or the advantage the aggressor may have. As soon as it can be properly replaced, the referee shall direct a second to wash the mouthpiece and the referee shall then replace it with all deliberate speed. For professional kickboxing contests, a round will not be stopped by the loss of a mouthpiece.

3. A contestant who intentionally spits out a mouthpiece in an apparent attempt to cause the progress of a round to be interrupted is subject to penalty to be determined by the referee.

E. Stools. The promoter shall provide an appropriate number of stools or chairs for each combatant's corner. The stools or chairs shall be of a type approved by the Commission. All stools and chairs shall be thoroughly cleaned or replaced after each bout.

F. Bell. The term "bell" shall refer to a bell, horn, gong, or other sound device approved by the Commission, which shall be positioned at a location approved by the Commission, and shall carry a clear tone so that the contestants may easily hear its sound.

G. Injured Combatants.

1. The ringside physician shall enter the fighting enclosure and examine and tend to a contestant who has been knocked out or is otherwise injured. The physician may enter at the conclusion of a bout, when called in by the referee, or when it is deemed medically necessary by the physician. The seconds of the injured contestant shall not interfere with the physician.

2. Contestants who have been knocked down and out shall be kept in a stable position until they have recovered.

3. A contestant who has been knocked out shall not be permitted to compete until the Executive Director and a physician approved by the Executive Director jointly clear the contestant's return to competition. In making this decision, the consideration of the Executive Director and the physician shall include, but shall not be limited to, the requirements under R19-2-C604(A)(3).

4. A combatant who has been knocked out three times within a 12-month period shall be suspended from competition for six months from the date of the last knock-out, and must satisfy the Commission that he or she is capable of returning to competition, including, but not limited to, documenting clearance under R19-2-C604(A)(3).

5. The term "knockout" as used in this subsection includes a technical knockout that is injury-based.

H. Female Combatant. A female combatant shall not be matched or engage in a bout with a male combatant, unless approved by the Commission.

I. Weigh-in; when contestants are required to appear.

1. The weigh-in shall be held at a time and place approved by the Commission in conformance with A.R.S. § 5-225(E). It shall be supervised by a Commission representative. Promoters are required to contact the Commission at least 48 hours in advance of the weigh-in to make appropriate arrangements therefor. Contestants shall appear at the weigh-in and the failure to do so may subject the contestant to discipline, up to and including disqualification from competing.

2. Contestants shall appear at the event location at least one hour before the scheduled bout in which they will compete.

3. Contestants who are already licensed and scheduled to fight shall be present in the city of the scheduled event at least 24 hours before the event and make their presence known to the Commission.

J. Physical examination, appearance and weight.

1. Each contestant shall be required to complete a pre-fight physical examination by an appointed physician as directed by the Commission. The examining physician shall be satisfied that a contestant is in good physical condition and able to compete in the scheduled event. Each contestant shall be re-examined within one hour after the bout in which he or she has competed.

Facial and head hair shall not create a hazard to safety or interfere with the supervision or conduct of the event. The Commission may require alteration to facial and head hair in the sole discretion of the Commission representative at the weigh-in. Hair stays must be approved by the Commission. Jewelry and piercing accessories are prohibited during competition.

3. A contestant who exceeds his or her contractual weight by more than one pound at the weigh-in is in breach of his or her contract. At the discretion of the Commission, the contestant may be permitted a second opportunity to make the weight within two hours. In the alternative, the Commission may impose a penalty consisting of a forfeiture of no more than 20% of the gross purse. Penalty amounts may be added to the purse of the contestant's opponent.

There shall be allowed variations in weight allowances and weight classes in non-championship fights, if both contestants and the Commission approve the variation.

K. Illness and absence.

1. Whenever a contestant, because of injuries or illness, is unable to take part in an event for which the contestant is under contract, that contestant or the contestant's designated representative shall immediately report that fact to the Commission. The Commission may then require the contestant to submit to an examination by a physician. The examination fee of the physician shall be paid by the contestant, or by the promoter, if the latter requests the examination.

2. Any contestant who fails to appear for an event in which the contestant is under contract shall be subject to disciplinary action, unless the contestant has submitted to the Commission a written valid excuse or physician's certification of illness or injury in advance of the event.

L. Substances.

1. It is prohibited for drugs, injections, intravenous fluids, or stimulants to be administered to, possessed by, or used by, a contestant during, or within 24 hours preceding an event. This includes smelling salts, ammonia capsules, or similar irritants. Caffeine or caffeinated beverages cannot be consumed during or within two hours before a fight.

2. The Commission may order anti-doping examinations immediately before and/or after the event. A sample (blood, breath, or urine) shall be provided, using sterile containers, in the presence of the Commission representative, the physician appointed by the Commission, or his or her appointee; and a representative of the combatant.

3. During an event, administering to a contestant any substance other than plain water or Commission-approved electrolyte drinks is absolutely prohibited.

4. Coagulants such as adrenalin 1/1000, and others expressly approved by the ringside physician, may be used between rounds to stop bleeding of cuts. "Iron type" coagulants, such as Monsel's solution, are absolutely prohibited and shall be grounds for disqualification.

5. In the discretion of the referee, a small amount of petroleum jelly may be used around the eyes. The use of lubricants, grease, or any other foreign substance on the arms, legs, or body is prohibited. The referee of a Commission representative has the right to require the removal of excessive lubricants or other foreign substances.

M. Inspectors.

1. The Commission shall appoint a minimum of one chief inspector for each event for the purpose of overseeing and coordinating the activities occurring in the dressing rooms with the activities occurring at ringside and the television coordinator.

2. Chief Inspectors shall:

a. Enforce the rules regarding hand wraps, glove weights and types, approved substances, and equipment and supplies that must be in the corner during a match, conduct of the seconds in the corner during the match, how a fight may be stopped by the chief second, and drug test administration;

b. Have drug testing kits, tape, pens, gloves, and other equipment available and in good working condition, for use by the Commission; and

c. Ensure that the promoter has provided the required emergency medical personnel and their equipment.

3. The Commission shall appoint additional inspectors as necessary for each event for the purpose of overseeing, directing, and controlling the activities occurring in the dressing room and at ringside.

4. Inspectors shall know and follow these rules and the Inspector's Training Guidelines provided by the Commission.

N. Presence of medical assistance.

1. At least one licensed physician shall be assigned to cover every contest, and shall sit at the immediate ringside of all bouts, unless the Commission determines that more than one assigned physician is necessary to protect the safety of fighters or promote the success of the event. No bout shall be allowed to proceed until at least one assigned physician is seated ringside. No assigned ringside physician shall leave the fighting venue until the dressing rooms are cleared after the final bout. Every physician shall be prepared to assist if any serious emergency arises and shall render temporary or emergency treatments for cuts and minor injuries sustained by the contestants.

2. No manager or second shall attempt to render aid to a contestant during the course of a round before the assigned ringside physician has had an opportunity to examine the contestant who may have been injured.

3. No event shall take place, whether amateur, professional, or both, without a team of fully equipped, qualified paramedics and a paramedic ambulance (collectively, a "paramedic unit") present at the event venue for each bout at all times.

a. If a paramedic unit leaves the site of the event to transport an unarmed combatant to a medical facility, the unarmed combat event must not continue until another paramedic unit is present and available. If the event cannot be stopped, as in the case of a televised event, the promoter shall make prior arrangements to ensure that there will be a paramedic unit present at all times, including arranging for the presence of additional paramedic units at the event start.

b. If a paramedic unit is not available because of the location of the site, the highest level of paramedic assistance and transportation in that location shall be present, able, and available to treat and transport an unarmed combatant to a medical facility.

c. The medical personnel described in this subsection shall be designated to render service only to the unarmed combatants in the event, and shall be positioned in a location that is deemed appropriate by the ringside physician.

d. Each promoter shall give notice of the event to:

i. The paramedic-unit companies that are located nearest to the site of the event and ascertain from the service the length of time required for one of its ambulances to reach the site; and

ii. The nearest hospital emergency room.

e. For purposes of this subsection (N), an event of unarmed combat begins with the commencement of the first bout and ends when the last unarmed combatant leaves the site.

f. The Commission may waive all or part of the paramedic unit requirement, in its discretion, if the person requesting the waiver demonstrates that adequate alternative medical facilities are readily accessible.

O. Conduct of seconds.

1. A contestant may have up to three seconds and shall designate to the referee which of them is the chief second. The chief second is responsible for the conduct of the assistant seconds. Only one second can be inside the ring during a period of rest, unless a greater number is approved by the Commission, except that there may be two seconds in the ring during a Muay Thai rest. The Commission, in its sole discretion, may approve an increase in the number of seconds to four in a championship contest or in a special event.

2. A second shall remain seated outside of, and shall not enter, the fighting area or stand on the apron during the progress of a round. A second shall not administer aid to a contestant during a round. During an officially interrupted round, a second may stand on the apron only with the express permission of the referee.

3. Seconds shall not interfere with the progress of a round, for example, by banging on the apron or excessive coaching. The referee has the discretion to disqualify a second whose conduct is interfering with a bout.

4. Any excessive or undue spraying or throwing of water on a combatant by a second during a period of rest is prohibited.

5. A chief second may signal a referee to stop the fight in the manner approved by the Commission.

P. Referee.

1. The referee shall have direction and control over contestants and their seconds during a bout subject to the governing laws and rules. The referee shall have final authority to decide if an injury is produced by a fair or foul blow and if an act is intentional or accidental. The referee shall have final authority to stop a bout when in the referee's opinion a contestant is unfit to continue or otherwise cannot compete. When instant replay is available, the referee, in the referee's sole discretion, may utilize the instant replay to determine the actual result of the fight-ending sequence in the case where a fight has been officially stopped and the result may have been caused by any type of foul, under the following rules:

a. A fight-ending sequence shall mean the final exchange of strikes or maneuvers that results in the ending of a bout.

b. The referee, and only the referee, may use the instant replay if the referee indicates to the Commission the need to do so ("Call for Replay Review") within three minutes from the stoppage of the fight.

c. The referee may have no more than five minutes to review the fight-ending sequence once the instant replay is made available and shall make a final decision within that period of time.

d. The information obtained from the replay shall not be used to restart the fight as the fight is officially over and cannot be resumed.

e. If there is technical difficulty in accessing the instant replay that cannot be resolved within 10 minutes of the Call for Replay Review, the referee's initial determination shall be final.

f. Instant replay shall not to be used by any party to challenge the decisions of the referee.

2. In the case of a cut or other injury which the referee believes may be incapacitating, the referee may consult with the ringside physician before making a decision and may interrupt a round and have the clock stopped for this purpose. The Referee shall notify Commission representatives of any cuts or injury observed, regardless of the severity of the injury.

3. When a contestant is incapacitated because of a foul, the referee has the discretion to interrupt a round and have the clock stopped for up to five minutes to enable the contestant to recover.

4. If the referee reasonably suspects that the contestants are not honestly competing, the referee shall stop the bout and declare a "no contest." Purses of both contestants shall be held pending investigation and disposition by the Commission, in its sole discretion.

5. Prior to giving a warning for rule infringement, the referee shall stop the fight, use the correct warning signal to ensure the contestant's understanding and then indicate the offending contestant to the judges. Any contestant, who is warned three times or more, may be disqualified.

6. The referee shall pick up the count for knock downs from the timekeeper by the fourth second.

7. The referee shall provide a 10-second warning to the seconds to leave the fighting area. The seconds must be out of the fighting area when the bell rings.

8. Should the contestant causing a knockdown fail to stay in the farthest neutral corner during the count, the referee shall cease counting until the contestant has returned to that corner. The referee shall then go on with the count from the point at which it was interrupted.

9. The referee shall wave both arms to indicate that a contestant has been counted out or cannot otherwise continue.

10. The referee shall raise the hand of the winner at the end of the bout.

Q. Judges.

1. The judges shall be independent and free to score according to the rules and normal practice.

2. Each judge shall sit separately from each other and from the audience.

3. The judges shall remain neutral during the match. However, a Muay Thai judge may notify the referee of a rule violation during the round interval.

4. At the end of each round, the judges shall complete the score card for that round.

5. The judges are not allowed to leave their seat until the match ends and result has been announced.

R. Type of results. Unless otherwise indicated in these rules, the following result types apply to every unarmed combat discipline regulated by the Commission:

1. A knockout occurs by failure of a combatant to rise from the canvas. The failure to resume fighting after a rest period shall be considered as if a knockout or technical knockout occurred in the next round.

2. A technical knockout occurs when:

a. The referee stops a bout;

b. The ringside physician stops a bout; or

c. An injury as a result of a legal maneuver is severe enough to terminate a bout.

3. A decision via score cards occurs when there is no knockout or technical knockout. A score card decision is of three types:

a. Unanimous - when all three judges score the bout for the same contestant;

b. Split Decision - when two judges score the bout for one contestant and one judge scores for the opponent; or

c. Majority Decision - when two judges score the bout for the same contestant and one judge scores a draw.

4. A draw is of three types:

a. Unanimous - when all three judges score the bout a draw;

b. Majority - when two judges score the bout a draw; or

c. Split - Where one of the three judges scores the contest in favor of one fighter, another judge scores the contest in favor of the other fighter, and the third judge scores the contest as a draw.

5. Disqualification of a contestant who has committed fouls may occur when the referee determines that a foul was intentional, severe, or flagrant, there is a combination of fouls of any type, or the bout is terminated as a result of an injury resulting from an intentional foul. A disqualification shall result in a win for the opponent of the disqualified contestant.

6. Forfeiture may occur when a contestant fails to begin competition or prematurely ends the bout for reasons other than those listed in these rules.

7. A technical draw may occur when an injury sustained during competition as a result of an intentional foul causes the injured contestant to be unable to continue and the injured contestant is even or behind on the score cards at the time of stoppage. A technical draw will also occur when both fighters are simultaneously knocked out ("double knockout"), both contestants are in such condition that a continuance may subject them to serious injury, or, in kickboxing, an accidental foul terminates a bout during the first round.

8. A technical decision may occur when the bout is prematurely stopped due to injury and a contestant is leading on the score cards.

9. No contest may occur when a bout is prematurely stopped due to accidental injury and a majority of rounds has not been completed to render a decision via the score cards. A no contest shall render the contest a nullity, with no winner or loser.

10. In a discipline using a 10-point must system of scoring, an even 10-10 score is allowed, but shall be a relatively rare result.

S. Timekeeper.

1. The timekeeper shall keep precise timing of each round and the breaks, following the referee's instructions to start or stop, according to the rules and normal practice. A timekeeper is responsible for keeping the official time of each bout and shall:

a. Start and end the round by striking the bell or other sound device approved for the bout.

b. Warn contestants when there is only 10 seconds remaining in a round by the method approved for the unarmed combat discipline.

c. Signal the end of each rest period by use of a distinctive whistle or other approved sound.

d. Correctly regulate all periods of time and counts by a stop watch or clock, but shall only stop the clock when instructed by the referee with the command "time," then resuming timekeeping when the referee gives the command "time in."

e. Use two stop watches or clocks for regulating rounds and rehabilitation periods.

f. For all disciplines other than MMA, start the knock down count by standing and signaling to the referee, audibly and by hand gestures, the correct count in one-second intervals.

2. There is no saving by the bell during a count, except during the last round.

T. Announcer. The announcer has the responsibility to:

1. Announce the combatants' names, corner, and weight or weight class prior to the fight and again as they arrive in the ring;

2. Hold the microphone for the referee to announce the rules or guidelines;

3. Announce the round number at the start of each round;

4. Announce the correct winner's name and corner, when the referee raises the combatant's hand; and

5. Announce any other information required by the unarmed combat discipline or the Commission.

U. Gloves. The Commission may require that promoters provide, for approval, a deconstructed sample of non-certified gloves to be used in any match, together with a list of materials used to construct the gloves.

V. Bandaging.

1. As a general rule, soft surgical bandage ("gauze") and surgeon's adhesive tape ("tape") may be used to protect the hands or feet of combatants, depending on the discipline.

2. With regard to hand bandaging, tape shall be placed directly on the skin of the hand nearest to the wrist to protect that part of the hand. Said tape may cross the back of the hand twice, but shall not exceed one winding's width (for example two inches for boxing hand wraps). Bandages shall be evenly distributed across the hand.

3. Contestants shall not wet wraps or apply a substance to the wrapping.

Bandages and tape shall be applied in the dressing room in the presence of the inspector. Gloves shall not be placed on the hands of a contestant until the bandages are approved by the inspector. If approved by the Commission, a contestant has the right to have a second or manager witness the bandaging of an opponent's hands.

5. Variations specific to each discipline are listed in Table 2.

6. All other wraps or bandages that are not specifically allowed in these rules must be approved by the Commission.

W. Fouls. The following actions are fouls in every unarmed combat discipline:

1. Striking or abusing an official;

2. Hitting on a break, after the round has ended, or after the referee has stopped the bout;

3. Butting with the head;

4. Groin attacks of any kind;

5. Refusal to obey the commands of the referee;

6. Timidity (avoiding contact, intentionally falling down, faking an injury, intentional stalling, refusing to engage, intentionally dropping the mouthpiece, or using passive tactics);

7. Spitting or biting;

8. Use of swearing or abusive language during the event by a contestant or the contestant's representatives;

9. Eye gouging;

10. Hair pulling;

11. Strikes to the spine, back of the head, or base of the skull ("rabbit blows");

12. Interference by seconds;

13. Intentionally throwing an opponent out of fighting area;

14. Holding the ropes or onto the cage for any reason; and

15. Any unsportsmanlike conduct that, in the opinion of the referee, does, or is likely to, cause an injury to an opponent or interference with the contest.

X. Rounds.

1. A round of unarmed combat includes a period of unarmed combat immediately followed by a period of rest, with the exception that there is no period of rest after the final round.

2. The Commission may approve a variation on the standard number and duration of rounds during a bout.

3. A round only begins upon the sounding of the bell. Any stoppage during the match for any reason, will not be counted as part of the round time.

History

• Amended by final rulemaking at 24 A.A.R. 445, effective 2/7/2018.

Ariz. Admin. Code § R19-2-D602 Boxing

A. The ring. The promoter is responsible for providing a safe ring in accordance with the following:

1. The ring shall be four sided, between 16 and 20 feet per side, with two feet outside the ropes, and securely assembled.

2. The floor shall be covered with shock-absorbent padding, such as Ensolite or the equivalent.

3. The padding shall be covered with tightly-stretched clean canvas securely laced to the platform.

4. There shall be four ropes, stretched and linked to four corner posts. The rope shall not be less than one inch in diameter, and shall be covered by a soft or cushioning material. Positioning and tensioning of the rope shall be approved by the Commission.

B. Gloves. The promoter is responsible for providing boxing gloves for contestants in accordance with the following:

1. Gloves shall be 8 ounces in weight for all divisions under 135 pounds; and 10 ounces in weight for all divisions over 135 pounds, except that fighters of weight between 135 to 147 pounds may mutually agree in writing to use 8-ounce gloves. The promoter shall have two extra sets of 8-ounce and 10-ounce gloves available during an event.

2. All gloves shall be nationally-approved brands or shall be submitted for approval to the Commission, and shall be in sanitary, safe, and good condition.

3. Gloves for title bouts shall be new and delivered to the Commission representative with the packaging unbroken.

C. Contestant's equipment and apparel. Each contestant has the duty to provide personal hand bandaging, uniforms, robe, boxing or combat shoes, abdominal guard, mouthpiece, water bottle, bucket, and towel for use during a bout, unless certain items are provided under the promoter/fighter contract. A contestant's equipment is subject to the approval of the Commission or its representative and the following requirements apply to the equipment and apparel of all contestants:

1. The contestants may not wear the same colors in the ring, without the approval of the Commission's representative. Each contestant shall have two uniforms in contrasting colors, with each uniform consisting of trunks for male contestants and a top and shorts for female contestants.

2. The belt of the trunks or shorts shall not extend above the waistline.

3. Facial cosmetics shall be prohibited.

4. Each contestant shall wear an abdominal guard that will protect him or her against injury from a foul blow. The abdominal guard shall not cover or extend above the umbilicus.

D. Weight classes. The following traditional weight classes shall be used as a general guide:

| Weights | Weight Range in Pounds | | --- | --- | | Flyweight | Less than 118 | | Bantamweight | 118-125.9 | | Featherweight | 126-134.9 | | Lightweight | 135-146.9 | | Welterweight | 147-159.9 | | Middleweight | 160-174.9 | | Light Heavyweight | 175-199.9 | | Heavyweight | 200+ |

E. Fair blows and fouls.

1. Fair blows are delivered by a combatant with the padded knuckle part of the glove to the front or sides of the head, shoulders, arms, and front torso above the belt line of an opponent.

2. All blows that are not fair as described in subsection (E)(1) above are fouls. In addition to the foul blows listed in R19-2-D601(W), the following practices are also classified as fouls in boxing:

a. Hitting an opponent who is down or in the process of getting up after being down;

b. Holding an opponent with one hand and hitting with the other, or duck so low that the contestant's head is below an opponent's belt line;

c. Holding or maintaining a clinch after directed by the referee to break, or failure to take a full step back when the referee breaks a clinch;

d. Pushing, tripping, kicking, or wrestling;

e. Hitting with elbows, shoulder, or forearm;

f. Hitting with an open glove, the inside of the glove, the wrist, the backhand, or the side of the hand; and

g. Punching an opponent's back or the kidneys (kidney punch).

F. Intentional foul.

1. The referee shall have discretion as to the penalty for fouling. The referee may direct the deduction of points, and may also disqualify the wrongdoer, in the case of persistent or major fouling, or where the foul prevents continuance of the bout. Normally, in the case of minor fouling, the referee is expected to issue a warning before imposing a penalty. Penalties shall be imposed during or immediately after the round in which the foul occurs. The referee shall personally advise the corners and each judge of the points deducted immediately upon imposition of the penalty.

2. If a contestant is injured (e.g., cut) by an intentional foul but can continue, the referee shall notify the judges and the Commission representative at ringside that if the foul-inflicted injury is subsequently aggravated to the point that the injured contestant cannot continue, a technical win will be rendered in favor of the injured contestant if the injured contestant is ahead on points, or the points are even, and a technical draw will be rendered if the injured contestant is behind on points.

G. Accidental foul.

1. If a contestant is accidentally fouled so that the contestant cannot continue, the referee shall stop the bout and a technical decision shall be rendered in favor of the contestant ahead on points. If the points are even, or if the foul occurs in the first three rounds, a no contest shall be declared.

2. If a contestant is injured by an accidental foul but can continue, the referee shall notify the judges and the Commission representative at ringside that if the foul-inflicted injury is subsequently aggravated to the point that the injured contestant cannot continue, the bout will be stopped and a technical win will be rendered in favor of the contestant ahead on points. If the points are even, or if the injury occurs in the first three rounds, a no contest shall be declared.

H. Results specific to boxing.

1. In addition to the type of results listed in R19-2-D601(R), the following results are specific to boxing:

a. When contestant is considered knocked down. A contestant is considered to be knocked down when any part of the contestant's body, other than the soles of the feet are on the canvas, or the contestant hangs helplessly on the ropes, unable to stand, or the contestant is knocked out of the ring.

b. Counting. When the contestant is knocked down the referee shall order the opponent to the farthest neutral corner of the ring, pointing to the corner. The count shall begin by the timekeeper immediately upon the knockdown. The timekeeper, by audible counting and hand signaling, shall give the referee the correct one-second interval for the count. The referee shall pick up and audibly announce the passing of the seconds, accompanying the count with appropriate hand motions. The referee's count is the official count.

c. Length of Count. A contestant who is knocked down shall not be allowed to resume boxing until the referee has finished counting 8 ("mandatory 8 count"). A contestant may take the count either on the floor or standing. If the contestant taking the count is not standing in a complete upright position when the referee calls the count of 10, the referee shall wave both arms indicating that the contestant has been knocked out.

d. No saving by bell. Except in the last round, there is no saving by the bell. If a contestant is knocked down during the last 10 seconds of a round, the count shall continue after the end of the round as if the round was not ended. The one-minute rest period will begin from the time the contestant rises after the knockdown. If a contestant is knocked down during a round, and counted out after the end of a round, the knockout shall be considered as having taken place during the round which was last finished.

e. Wiping gloves. Before a contestant resumes boxing after having been knocked down, or having slipped, to the floor, the referee shall wipe any foreign substance from the contestant's gloves before allowing the bout to resume.

f. Three knockdowns. When a contestant is knocked down for the third time in a round, the referee shall stop the bout. The opponent shall be declared the winner. This rule shall not apply to championship contests, unless both contestants and the Commission agree that it should apply.

g. Knocked out of ring. A contestant who is knocked or fallen out of the ring, may be helped back onto the ring apron by anyone except the contestant's manager or seconds. The contestant has a total of 20 seconds to get into the ring and rise.

I. Method of judging.

1. Three judges shall score all bouts. Under special circumstances two judges and the referee may score. The method of judging shall be the 10-point must system. In this system the better contestant receives 10 points and the opponent proportionately less, but not less than 7 points. If the round is even, each contestant receives 10 points. A fraction of points may not be given. Points for each round shall be awarded immediately after the termination of the round and not subsequently changed. Judges shall sign their scorecards.

2. After each round, the referee shall pick up the scorecards of the judges and then deliver the cards to the Commission representative assigned to check them for mathematical accuracy. When the Commission representative has completed checking the final scorecards, the representative shall advise the announcer of the decision, and the announcer shall then inform the audience of the decision over the speaker system. The Commission representative shall be present at the ring apron when checking the score-cards.

J. Rounds.

1. The number of rounds in a boxing bout shall not exceed a maximum of 12.

2. The duration of each round shall be a maximum of three minutes, followed by a one-minute rest period after each non-final round.

History

• Amended by final rulemaking at 24 A.A.R. 445, effective 2/7/2018.

Ariz. Admin. Code § R19-2-D603 Mixed Martial Arts

A. The fighting area.

1. Regardless of the shape of the fighting area, the fighting area canvas shall be no smaller than 518 square feet and no larger than 746 square feet. The fighting area canvas shall be padded in a manner as approved by the Commission, with at least a 1-inch layer of foam padding. Padding shall extend beyond the fighting area and over the edge of the platform. Vinyl or other plastic rubberized covering shall not be permitted unless approved by the Commission.

2. The fighting area canvas shall not be more than 4 feet above the surface upon which the fighting area is constructed and shall have suitable steps or ramp for use by the participants. Posts shall be made of metal not more than 6 inches in diameter, extending from the floor of the building to a minimum height of 58 inches above the fighting area canvas and shall be properly padded in a manner approved by the Commission.

3. The fighting area shall be enclosed by a fence made of such material as will not allow a fighter to fall out or break through it onto the floor or spectators, including, but not limited to, vinyl coated chain link fencing. All metal parts shall be covered and padded in a manner approved by the Commission and shall not be abrasive to the contestants.

4. The fence may provide two separate entries onto the fighting area canvas, but one entrance is acceptable.

B. Gloves. The promoter is responsible for providing gloves for contestants in accordance with the following:

1. The gloves shall be new for all main events and in good condition, or they must be replaced.

2. All contestants shall wear gloves of 4, 5, or 6 ounces in weight, approved by the Commission. No contestant shall supply their own gloves for participation, unless approved by the Commission and mutually agreed upon by the contestants.

C. Contestant's equipment and apparel.

1. For each bout, the promoter shall provide at least one clean water bucket and clean plastic water bottle in each corner.

2. Male contestants shall wear a groin guard of their own selection, of a type approved by the Commission.

3. Female contestants are prohibited from wearing groin guards, but may be required to wear a chest protector during competition, of a type approved by the Commission.

4. Gis, shirts, socks, and shoes are prohibited during competition. Each contestant shall wear MMA shorts, biking shorts, or kick-boxing shorts, and women contestants shall also wear approved tops.

D. Weight classes. The following weight classes shall be used as a general guide:

| Weights | Weight Range in Pounds | | --- | --- | | Flyweight | Less than 126 | | Bantamweight | 126-134.9 | | Featherweight | 135-144.9 | | Lightweight | 145-154.9 | | Welterweight | 155-169.9 | | Middleweight | 170-184.9 | | Light Heavyweight | 185-204.9 | | Heavyweight | 204-264.9 | | Super-Heavyweight | 265+ |

E. Fouls.

In addition to the foul blows listed in R19-2-D601(W), the practices addressed in subsections (E)(1) and (2) below are classified as fouls in MMA.

1. The following infractions shall receive a warning for the first instance, and thereafter shall result in a penalty:

a. Holding or grabbing the fence;

b. Holding an opponent's shorts or gloves; and

c. The presence of more than one second in the fighting area during a period of rest or the presence of a second on the apron without permission from the referee.

2. The following infractions shall receive a penalty if committed at any time:

a. Fish hooking;

b. Intentionally placing a finger in any orifice of an opponent;

c. Downward pointing of elbow strikes (i.e. a "12-to-6" downward elbow strike);

d. Small joint manipulation;

e. Heel kicks to the kidney;

f. Throat strikes of any kind;

g. Clawing, pinching, twisting the flesh or grabbing the clavicle;

h. Kicking or kneeing the head of a grounded contestant;

i. Stomping a grounded contestant, or kneeing or kicking the head of a grounded contestant;

j. Spiking an opponent to the canvas on the opponent's head or neck; and

k. For amateurs only:

i. Elbow strikes to the head of a grounded opponent;

ii. Twisting leg submissions;

iii. Linear kicks to the knees; or

iv. Foot stomps.

3. Only a referee can assess a foul. If the referee does not call the foul, judges shall not make that assessment on their own and cannot factor such into their scoring calculations.

4. If a foul is committed, the referee shall:

a. Call time;

b. Check the condition and safety of the fouled contestant; and

c. Assess the foul to the offending contestant, deduct points, and notify each corner's seconds, judges, and the official score-keeper of that decision.

5. There shall be no scoring of an incomplete round. If the referee penalizes either contestant, the appropriate deduction of points will occur when the final score is calculated.

6. For purposes of MMA, a "grounded" contestant occurs when any part of the contestant's body, aside from a single hand and soles of the feet, are touching the fighting-area floor. To be grounded, both hands palm/fist down, and/or other body part, will be touching the fighting-area floor. If a single knee or arm is touching the fighting-area floor, the combatant or contestant is grounded without having to have another body part touching the fighting area floor.

F. Intentional fouls. For intentional fouls, the following rules shall apply:

1. An intentional foul that does not result in an injury shall result in a deduction of one point from the offending combatant's score. If an injury results from an intentional foul, the referee shall inform the scorekeeper to deduct two points from the score of the offending contestant.

2. The offending contestant loses by disqualification if the referee determines that any of the offenses were intentional, severe, or flagrant, there is a combination of three of the fouls listed in subsection (E)(2) above, or the bout is terminated as a result of an injury resulting from an intentional foul.

3. If an injury sustained during competition as a result of an intentional foul causes the injured contestant to be unable to continue at a subsequent point in the bout:

a. The injured contestant will win by a technical decision, if the injured contestant was ahead on the score cards; or

b. The outcome will be declared a technical draw, if the injured contestant was behind on the score cards.

4. If a contestant incurs injury while attempting to foul an opponent, the referee shall not take any action in the contestant's favor, and the injury shall be treated in the same manner as an injury produced by a fair blow.

5. If, during grappling, the contestant on the bottom commits a foul, the bout will continue to protect the superior position of the topmost contestant, unless the contestant on the top is too injured to continue.

G. Accidental fouls.

1. Accidental fouls will result in one point being deducted by the official scorekeeper from the offending combatant's score if directed by the referee.

2. If an injury sustained during competition as a result of an accidental foul is severe enough for the referee to stop the bout immediately, the bout shall result in a no contest, if stopped before a majority of rounds have been completed.

3. If an injury sustained during competition as a result of an accidental foul is severe enough for the referee to stop the bout immediately, the bout shall result in a technical decision awarded to the contestant who is ahead on the score cards at the time the bout is stopped only when the bout is stopped after a majority of rounds have been completed.

H. Results specific to MMA. In addition to the type of results listed in R19-2-D601(R), bout results can include submission by:

1. Tap out, which occurs when a contestant physically uses his or her hand to indicate that he or she no longer wishes to continue; or

2. Verbal tap out, which occurs when a contestant verbally announces to the referee that he or she does not wish to continue.

I. Method of judging.

1. All bouts will be evaluated and scored by three judges.

2. The 10-point must system will be the standard system of scoring a bout. Under the 10-point must scoring system, 10 points must be awarded to the winner of the round and 9 points or less must be awarded to the loser, except for an even (10-10) round.

3. Judges shall evaluate the following MMA techniques in the following order of importance: effective striking, grappling, control of the fighting area, aggressiveness, and defense.

a. Effective striking is judged by determining the total number of legal heavy strikes landed by a contestant.

b. Effective grappling is judged by considering the amount of successful executions of a legal takedown and reversals. Examples of factors to consider are takedowns from standing position to mount position, passing the guard to mount position, and bottom position contestant using an active, threatening guard.

c. Effective fighting area control is judged by determining who is dictating the pace, location, and position of the bout. Examples of factors to consider are countering a grappler's attempt at takedown by remaining standing and legally striking, taking down an opponent to force a ground fight, creating threatening submission attempts, passing the guard to achieve mount, and creating striking opportunities.

d. Effective aggressiveness means moving forward and landing a legal strike.

e. Effective defense means avoiding being struck, taken down, or reversed while countering with offensive attacks.

4. The following objective scoring criteria shall be utilized by the judges when scoring a round:

a. A round is to be scored as a 10-10 round when both contestants appear to be fighting evenly and neither contestant shows clear dominance in a round;

b. A round is to be scored as a 10-9 round when a contestant wins by a close margin, landing the greater number of effective legal strikes, grappling and other maneuvers;

c. A round is to be scored as a 10-8 round when a contestant overwhelmingly dominates by striking or grappling in a round; and

d. A round is to be scored as a 10-7 round when a contestant totally dominates by striking or grappling in a round.

5. Judges shall use a sliding scale and recognize the length of time the contestants are either standing or on the ground, as follows:

a. If the contestants were on the canvas most of the round, then:

i. Effective grappling is weighed first; and

ii. Effective striking is then weighed.

b. If the contestants were standing most of the round, then:

i. Effective striking is weighed first; and

ii. Effective grappling is then weighed.

c. If a round ends with a relatively even amount of standing and canvas fighting, striking and grappling are weighed equally.

J. Rounds.

1. The number of rounds in a professional MMA bout shall not exceed a maximum of five rounds.

2. The duration of each professional round shall be a maximum of five minutes, followed by a one-minute rest period after each non-final round.

3. The number of rounds in an amateur MMA bout shall not exceed a maximum of three rounds.

4. The duration of each amateur round shall be a maximum of three minutes, followed by a one-minute rest period after each non-final round.

History

• Amended by final rulemaking at 24 A.A.R. 445, effective 2/7/2018.

Ariz. Admin. Code § R19-2-D604 Kickboxing

A. The ring. The promoter is responsible for providing a safe ring in accordance with the following:

1. The ring shall be four-sided, not less than 17 feet nor more than 20 feet per side measured within the ropes.

2. The ring platform shall not be more than 4 feet above the surface upon which the ring is constructed and shall be provided with suitable steps for use of the contestants. Ring posts shall be of metal, not more than 4 inches in diameter, extending from the floor of the building to a height of 58 inches above the ring floor and shall be properly padded.

3. The floor shall be covered with shock-absorbent padding, as approved by the Commission, which shall extend beyond the ring ropes and over the edge of the platform.

4. The padding shall be covered with tightly-stretched clean canvas securely laced to the platform.

5. There shall be four ropes, stretched and linked to four corner posts. The rope shall not be less than 1 inch in diameter and shall be covered by a soft or cushioning material. Positioning and tensioning of the rope shall be approved by the Commission.

B. Gloves and footpads.

1. World title bouts for men shall be fought with 8-ounce regulation gloves. All other male professional bouts may be fought with 8-ounce or 10-ounce gloves by agreement between the promoter and the contestants. All women's professional bouts, including world title bouts, and all amateur competitions shall be held with 10-ounce regulation gloves. Those contestants matched at a weight heavier than super welterweight may be required to wear gloves with more extensive padding than those contestants matched at a lighter weight.

2. All gloves must be nationally-approved brands or shall be submitted for approval to the Commission, and shall be in sanitary, safe, and good condition. Matched contestants shall wear padded protective equipment on the hands and feet of an identical size, shape, style and manufacture as provided by the promoter.

3. Gloves for title fights shall be new and delivered to the Commission representative with the packaging unbroken.

4. If footpads or shin guards are used, they shall be new and unbroken and shall be approved by the Commission.

C. Contestant's equipment and apparel.

1. For each bout, the promoter shall provide at least one clean water bucket in each corner, and shall provide the gloves for each contestant to ensure that matched contestants wear equipment of the same size, shape, style and manufacture.

2. Each contestant has the duty to provide the contestant's own hand bandaging, at least one light-colored and one dark-colored uniform, padded protective equipment to be worn on the feet, abdominal guard, breast protector (for women), mouthpiece, water bottle, and towel for use during an event. A contestant's equipment is subject to the approval of the Commission or its representative and the following requirements apply to the equipment and apparel of contestants:

a. The combatants may not wear the same colors in the ring, without the approval of the Commission's representative. In bouts involving a champion currently recognized by the Commission, the champion shall choose which color uniform to wear. In all other bouts, the referee or the Commission representative in charge will designate which contestant will wear the light-colored uniform and which contestant will wear the dark-colored uniform.

b. All contestants must follow the World Kickboxing Association Dress Code approved for the discipline their bout is fought under.

c. Facial cosmetics shall be prohibited.

d. Male contestants must wear a foul-proof groin guard or abdominal guard. A plastic or aluminum cup with an athletic supporter is adequate. Female contestants must wear foul-proof breast guards. Plastic breast covers are adequate. Female contestants may also wear an abdominal guard.

D. Weight classes. No bout shall be scheduled when the weight difference between combatants exceeds an allowance of three and one-half percent of the division weight.

The following weight classes shall be used as a general guide for men:

| Weights | Weight Range in Pounds | | --- | --- | | Strawweight | Less than 108 | | Atomweight | 108-111.9 | | Flyweight | 112-116.9 | | Bantamweight | 117-121.9 | | Featherweight | 122-126.9 | | Lightweight | 127-131.9 | | Super Lightweight | 132-136.9 | | Light Welterweight | 137-141.9 | | Welterweight | 142-146.9 | | Super Welterweight | 147-152.9 | | Light Middleweight | 153-158.9 | | Middleweight | 159-164.9 | | Super Middleweight | 165-171.9 | | Light Heavyweight | 172-178.9 | | Light Cruiserweight | 179-185.9 | | Cruiserweight | 186-194.9 | | Super Cruiserweight | 195-214.9 | | Heavyweight | 215-234.9 | | Super Heavyweight | 235+ |

The following weight classes shall be used as a general guide for women:

| Weights | Weight Range in Pounds | | --- | --- | | Strawweight | Less than 108 | | Atomweight | 108-111.9 | | Flyweight | 112-116.9 | | Bantamweight | 117-121.9 | | Featherweight | 122-126.9 | | Lightweight | 127-131.9 | | Super Lightweight | 132-136.9 | | Light Welterweight | 137-141.9 | | Welterweight | 142-146.9 | | Super Welterweight | 147-152.9 | | Light Middleweight | 153-158.9 | | Middleweight | 159-164.9 | | Super Middleweight | 165-174.9 | | Cruiserweight | 175-184.9 | | Super Cruiserweight | 185-214.9 | | Heavyweight | 215-234.9 | | Super Heavyweight | 235+ |

E. Fair blows and fouls.

1. All punches must land with the knuckle part of the glove, and no other part of the glove or forearm can be used. All kicks must connect with the ball of the foot, the instep, the heel, side of the foot, or the shin from below the knee to the instep.

2. In professional kickboxing competition there is a minimum kick expectation of eight kicks per round, although kick counters will not be used. If the referee feels that a contestant is not kicking enough he or she may give a verbal warning. If the contestant continues without using enough kicks, the referee may deduct a point, and judges shall implement that deduction.

Contestants may kick or sweep to the inside or outside region of the leg. Any deliberate kick to the knee, groin, or hip joint shall be prohibited and shall constitute a foul. The referee may issue a warning, order point deductions from the judges scoring, or may disqualify the offending contestant for repeated violations.

4. In addition to the foul blows listed in R19-2-D601(W), the following practices are classified as fouls in kickboxing:

a. Knee strikes, elbow strikes, palm-heel strikes, slapping, or clubbing blows with the hands.

b. Striking the throat, collarbone, the kidneys, or a female contestant's breasts.

c. Hitting with the open glove, or with the wrist.

d. Kicking into the knee, or striking below the belt in any unauthorized manner.

e. Anti-joint techniques (i.e. striking or applying leverage against any joint).

f. Holding an opponent with one hand and hitting with the other.

g. Grabbing or holding onto an opponent's leg or foot.

h. Leg checking the opponent's leg (act of extending the leg or foot to stop the kick of an opponent) or stepping on the opponent's foot to prevent the opponent from moving or kicking.

i. Holding any part of the body or deliberately maintaining a clinch for any purpose.

j. Throwing or taking an opponent to the floor in any unauthorized manner.

k. Striking a downed opponent, or an opponent who is getting up after being down. A contestant is "downed" when any part of the contestant's body other than the soles of the feet touches the floor.

F. Intentional foul.

1. The referee shall have discretion as to the penalty for fouling. The referee may direct the deduction of one to two points and may also disqualify the wrongdoer, in the case of persistent or major fouling, or where the foul prevents continuance of the bout. Normally, in the case of minor fouling, the referee is expected to issue a warning before imposing a penalty. Penalties shall be imposed during or immediately after the round in which the foul occurs. The referee shall personally advise the corners and each judge of the points deducted immediately upon imposition of the penalty.

If a contestant is injured (e.g., cut) by an intentional foul but can continue, the referee shall notify the judges and the Commission representative at ringside that if the foul-inflicted injury is subsequently aggravated to the point that the injured contestant cannot continue, a technical win will be rendered in favor of the injured contestant if that contestant is ahead on points, or the points are even, and a technical draw will be rendered if the injured contestant is behind on points.

G. Accidental foul.

1. If a bout is stopped because of an accidental foul, the referee shall determine whether or not the contestant who has been fouled can continue. The referee may consult with the attending physician. If the contestant's chances have not been seriously jeopardized as a result of the foul, the referee may order the bout continued after a reasonable interval.

2. On the other hand, if by reason of accidental foul a contestant shall be rendered unfit to continue the bout, it shall be terminated. The scorekeeper shall tally all scores, subtracting all penalties. If the injured contestant is behind on points in the majority opinion of the judges, then the referee shall declare the bout to be a technical draw. But if the injured contestant has a lead in points, then the referee shall declare the injured contestant to be the winner by technical decision.

3. Should an accidental foul terminate a bout during the first round, the referee shall declare the bout to be a technical draw.

H. Results specific to kickboxing.

1. When contestant is considered knocked down. A contestant shall be declared knocked down if any portion of the contestant's body, other than the feet touch the floor, or if the contestant hangs helplessly over the ropes. A contestant shall not be declared knocked down if he or she is pushed, thrown, or accidentally slips to the floor. The determination as to whether a contestant is pushed, thrown or slips to the floor, rather than being knocked down, shall be made by the referee.

2. Counting. Whenever a contestant is knocked down, the referee shall order the contestant's opponent to retire to the farthest neutral corner of the ring, pointing to the corner and immediately begin the count over the knocked down contestant. The time-keeper, through effective signaling, shall give the referee the correct one-second intervals for the count. The referee will audibly announce the passing of each one-second interval, indicating its passage with a downward motion of the arm. The referee's count is the only official count.

3. Length of Count.

a. Any time a contestant is knocked down, the referee shall automatically begin a mandatory 8 count and then, if the contestant appears able to continue, will allow the bout to resume.

i. The referee may, at his or her discretion, administer an 8 count to a contestant who has been stunned, but who remains standing. He or she shall direct the contestant's opponent to a neutral corner, then begin counting from 1 to 8, examining the stunned contestant as during the counts.

ii. If, after completing the standing 8 count, the referee determines that the contestant is able to continue, the referee shall order the bout to resume. But if the referee determines that the contestant is not able to continue, the referee shall stop the bout and declare the contestant's opponent to be the winner by technical knockout.

b. If the contestant taking the count is still down when the referee calls the count of 10, the referee shall wave both arms to indicate that the contestant has been knocked out and will signal that the contestant's opponent is the winner. A round's ending before the referee reached the count of 10 will have no bearing on the count. The contestant must still rise before the count of 10 to avoid a knockout.

c. Should a downed contestant rise before the count of 10 is reached and then go down again before being struck, the referee shall resume the count where he or she stopped counting.

d. Should both contestants go down at the same time, the referee shall continue to count as long as one of the contestants is down. If both contestants remain down until the count of 10, the bout will be stopped and the referee shall declare the bout to be a technical draw. But if one contestant rises before the count of 10 and the other contestant remains down, the first contestant to rise shall be declared the winner by knockout. Should both contestants rise before the count of 10, the round will continue.

4. Should a contestant be knocked down three times in one round from blows to the head, the referee shall stop the bout and declare the contestant's opponent to be the winner by technical knockout.

5. Whenever a contestant is knocked out primarily as a result of a kick, whether or not the kick occurred in combination with punches, the referee shall declare the contestant's opponent to be the winner by either kick knockout or technical kick knockout whichever is appropriate and shall be entered into the contestant's official record as a KKO.

6. A contestant who has been wrestled, pushed, or who has fallen through the ropes during the bout, may be helped back by anyone except the contestant's own seconds or manager. The referee shall allow reasonable time for the return. When on the ring platform outside the ropes, the contestant must enter the ring immediately. Should the contestant stall for time outside the ropes, the referee shall start the count without waiting for the contestant to re-enter the ring.

a. Once a fallen contestant re-enters the ring, the referee shall start the round from the moment that the contestant is back in the ring.

b. Whenever contestant falls through the ropes, the contestant's opponent must retire to the farthest neutral corner, as directed by the referee, and remain there until ordered to resume the bout.

c. A contestant who deliberately wrestles or throws an opponent from the ring, or who hits an opponent who is partly out of the ring and thus prevented by the ropes from assuming a position of defense, may be penalized.

7. Wiping gloves. Before a fallen contestant resumes competition, after having been knocked to, slipped to, or fallen to the floor, the referee shall wipe the contestant's gloves free of any foreign substance.

8. If after consulting with the physician, the referee decides that further contact below the belt, whether from fair or foul blow, will result in injury to a contestant's knee, the referee shall prohibit striking below the belt for the remainder of the bout.

I. Method of judging.

1. The judges shall score all bouts and determine the winner through the use of the 10-point must system. In this system the winner of each round receives 10 points and the opponent receives a proportionately smaller number. But in no circumstances shall a judge award the loser of each round with fewer than 7 points. If a round is judged even, each contestant shall receive 10 points. No fraction of points may be given.

2. Judges should base their scores on the relative effectiveness of each contestant in a given round. An official knockdown always demonstrates superior effectiveness. However, a contestant who is knocked down more from instability than from an opponent's blow, may be able to return from the knockdown and dominate the round by a large enough margin to be judged the winner. Also, the weight given to an official knockdown scored by one contestant must be equal to the weight given to an official knockdown scored by the contestant's opponent.

3. Generally, sweeps should not be given the same weight as an official knockdown. Judges should watch for the technique's effectiveness in slowing down an opponent.

4. A contestant who wins the round and does so with exceptional above-the-belt kicking technique, should be given a more favorable point advantage than the contestant who wins a round with a predominance of punching technique. Below-the-belt kicking technique should be given the same weight as punching techniques. A round should be awarded to the overall most effective above-the-waist kicker.

5. Further, a contestant who aggressively presses an opponent throughout a round, but cannot land a threatening kick or punch, should not be judged as favorably as the contestant who back pedals throughout the round but counter attacks with visible impact.

6. Judges shall award points to contestants on the basis of round by round outcomes and in accordance with the following scores:

a. 10 points to 10 points whenever neither contestant dominates the other with a superiority in effectiveness.

b. 10 points to 9 points whenever the winning contestant dominates the losing contestant with a marginal superiority in effectiveness.

c. 10 points to 8 points whenever the winning contestant dominates the losing contestant with exceptional above-the-waist kicking technique, or whenever the winning contestant dominates the losing contestant with a significant superiority in effectiveness as might be indicated by one knockdown.

d. 10 points to 7 points whenever the winning contestant dominates the losing contestant with an overwhelming superiority in effectiveness as must be indicated by more than one knockdown.

7. In the case of a professional or Pro Am title bout that ends in a draw, there shall be a tie-breaking extra round, that shall be decided by the referee.

J. Rounds.

1. The number of rounds in a kickboxing bout shall not exceed a maximum of 12 rounds.

2. The duration of each round shall be a maximum of two minutes, followed by a one-minute rest period after each non-final round.

History

• Amended by final rulemaking at 24 A.A.R. 445, effective 2/7/2018.

Ariz. Admin. Code § R19-2-D605 Muay Thai.

A. The ring. The promoter is responsible for providing a safe ring in accordance with the following:

1. The ring shall be four-sided, not less than 16 feet nor more than 24 feet per side, measured within the ropes.

2. The floor and corner shall be well constructed with no obstructions and with a minimum extension outside the ring of at least 3 feet. The minimum floor height should be 4 to 5 feet from the surface upon which the ring is constructed. The corner posts shall have a diameter of between 4 to 5 inches with a height of 58 inches from the ring floor. All four posts must be properly cushioned.

3. The ring floor must be padded by either cushioning, rubber, soft cloth, rubber mat, or similar material with a thickness of 1 to 1 1/2 inches. The padding shall be completely covered by a canvas cloth.

4. There shall be four ropes, stretched and linked to four corner posts. The rope shall not be less than 1 inch in diameter and shall be covered by a soft or cushioning material. Positioning and tensioning of the rope shall be approved by the Commission.

5. The ring shall have suitable steps for use of the contestants.

B. Gloves.

1. Promoters are responsible for providing gloves for contestants in accordance with the following:

a. Mini Flyweight - Junior Featherweight shall use 6-ounce gloves.

b. Featherweight - Welterweight shall use 8-ounce gloves.

c. Junior Middleweight and heavier classes shall use no less than 10-ounce gloves; and higher weights may use gloves of 12, 14, 16, or 18 ounces in weight, as approved by the Commission.

d. The promoter shall have one extra set of gloves for each glove weight, corresponding with the contestants' weight classes participating in the event.

2. All gloves will be inspected by a Commission inspector prior to the fight.

3. In the case of any problem with the boxing gloves themselves, the referee may temporarily halt the match until the problem is corrected.

C. Contestant's equipment and apparel.

1. Only boxing shorts may be worn by all contestants, and women shall also wear approved tops. Contestants shall have one extra set of apparel for an event.

2. To ensure the combatant's safety, a groin guard must be worn and shall be checked by an inspector.

3. Long hair may be worn, but hair shall be tied back, and facial hair shall be trimmed.

4. The Mongkol may be worn when performing the Wai Kru (paying respect to one's teacher) prior to the match start.

5. Arm bands may be worn.

6. Single elastic bandages are allowed to be worn on the arms or legs to prevent sprains, however insertion of a shin guard, or similar object, is not allowed.

7. No decoration, jewelry, or material with sharp or metal components is allowed to be worn during the bout.

8. The use of liniment is allowed as long as both contestants and Commission agree. Contestants shall not use liniment on the face.

9. Contestants may wear elastic ankle socks to protect their feet.

10. Any infringement to the dress code may result in the contestant's disqualification.

D. Weight classes. The following weight classes shall be used as a general guide:

| Weights | Weight Range in Pounds | | --- | --- | | Mini Flyweight | Less than 105 | | Junior Flyweight | 105-107.9 | | Flyweight | 108-111.9 | | Junior Bantamweight | 112-114.9 | | Bantamweight | 115-117.9 | | Junior Featherweight | 118-121.9 | | Featherweight | 122-125.9 | | Junior Lightweight | 126-129.9 | | Lightweight | 130-134.9 | | Junior Welterweight | 135-139.9 | | Welterweight | 140-146.9 | | Junior Middleweight | 147-153.9 | | Middleweight | 154-159.9 | | Super Middleweight | 160-167.9 | | Light Heavyweight | 168-174.9 | | Cruiserweight | 175-189.9 | | Heavyweight | 190-208.9 | | Super Heavyweight | 209+ |

E. Fair blows and fouls.

1. A fair strike may be made by a punch, kick, knee, or elbow. Contestants may strike with punches above the waist, kicks above the waist and to the inside and outside of an opponent's legs, but not to the groin or leg joints. Direct kicks (side-kick style) to the front of an opponent's legs are not allowed. Fighters, promoters, trainers, and the Commission may agree prior to the event to use modified rules, which agreement shall be documented in the promoter/fighter contract.

2. Clinching is allowed if one contestant is active within the clinch.

3. Contestants are allowed to catch their opponent's leg and take one step forward. After one step, the contestant holding the leg must strike before taking further steps.

4. A contestant may kick his or her opponent's supporting leg with the top of the contestant's foot or shin, but may not use the instep as in a karate-style sweep.

5. In addition to the foul blows listed in R19-2-D601(W), the following practices are classified as fouls in Muay Thai:

a. Slapping with the lace side of the gloves;

b. Holding an opponent's head or arm and hitting;

c. Strikes to leg joints or other joint attacks;

d. Palm heel strikes;

e. Wrestling, back or arm locks or any similar judo or wrestling hold, takedowns or grappling;

f. Spinning sweeps;

g. Karate-style chopping strikes;

h. Striking opponent when the opponent has slipped or fallen down (an opponent is down or downed when any part of his or her body other than the soles of his or her feet touches the floor of the ring);

i. Spinning forearm or elbow strike. A spinning backhand strike is allowed if the hit is made with the portion of the glove that is above the wrist line (from the tape line at the wrist to the end of the glove);

j. Deliberately falling on an opponent;

k. Hip throws.

F. Intentional foul. If a contestant commits an intentional foul in the ring, the referee shall have the discretion to do the following, depending on the nature and seriousness of the foul:

1. Deduct one point from the fouling contestant per foul;

2. Disqualify the contestant who has fouled; or

3. If there is a disqualification, the purse may be withheld and the contestant may be automatically suspended.

G. Accidental foul.

1. If a contestant commits an accidental foul in the ring, the referee shall have the discretion to do the following, depending on the nature and seriousness of the foul:

a. Give the contestant who has fouled a caution or a warning (only one warning may be given per bout, and a caution may not follow a warning given for the same type of foul);

b. Deduct one point from the fouling contestant per foul; or

c. Disqualify the contestant who has fouled, if it is a serious accidental foul or if multiple accidental fouls have been committed.

2. When a self-inflicted injury or an accidental foul causes the bout to be stopped, the result would be a no contest or a disqualification if the bout is stopped before a majority of rounds have been completed. If the injury occurs after a majority of rounds have been completed, then the judge's scorecards will be totaled and the decision of the bout will be announced.

H. Results specific to Muay Thai.

1. In addition to the type of results listed in R19-2-D601(R), the following are the types of bout results:

a. A draw will be declared if both contestants are injured and cannot continue the bout, when the stoppage occurs before a majority of rounds have been completed.

b. Individual scores will decide a match if both contestants are injured and cannot continue the bout after the majority of rounds have been completed.

2. Counting. The count interval will be at one-second intervals, from 1 to 10. During the count, the referee will signal with his or her hand, to ensure that the contestant receiving the count understands.

a. A contestant, upon receiving a count, cannot continue the match prior to a count of 8 and loses immediately on receiving a count of 10.

b. If both contestants fall down, the referee will direct the count to the last contestant that fell. If both contestants receive a 10 count, a draw will be declared. Should the contestants lean against each other while sitting up, the referee shall stop counting at that time.

c. The referee shall continue the count from the count of 8 when a contestant is "down" as a result of a hit, the contestant rises at or before the complete count of 8, and the bout is continued after the count of 8 is completed, but the contestant falls again without receiving a fresh hit.

d. A contestant not ready to fight again when the bell rings after a break, shall receive a count, unless the failure to fight is caused by an equipment problem. The referee will determine the length of time that will be allowed to fix an equipment problem. If the problem cannot be fixed, the result will be a forfeiture under R19-2-601(R)(6).

3. Knocked out of ring.

a. If a contestant falls partially or completely through the ring ropes onto the apron, the referee shall order the opponent to stand in the farthest neutral corner and if the contestant remains partially outside the ropes, the referee shall start to count to 10. If a contestant falls completely out of the ring, the referee shall count to 20. A contestant must re-enter the ring on his own without assistance from another person.

i. If the contestant returns to the ring before the count ends, the contestant will not be penalized.

ii. If anyone prevents the fallen contestant from returning to the ring, the referee shall stop the count and warn such person or stop the fight until such interference ceases.

iii. If both contestants fall out of the ring and one tries to prevent his or her opponent from returning to the ring before the count ends, the interfering contestant will be warned or disqualified.

iv. If both contestants fall out of the ring, the one that returns to the ring before the count ends will be considered the winner. If neither contestant can return to the ring, the result will be considered a technical draw.

4. "Flash knockdowns," where the downed contestant rises up immediately, are usually not counted as knockdowns with a standing 8 count. However, if the contestant is stunned by the knockdown, the referee may decide to perform an 8 count if he or she deems it necessary, no matter how fast the contestant rises after the fall.

I. Method of judging.

1. The following are the scoring rules:

a. The maximum score for each round is 10 points, the loser scoring either 9, 8, or 7;

b. A round that is a draw is scored as 10 points for both contestants;

c. The winner and loser in an indecisive round score 10 to 9 respectively;

d. The winner and loser in a decisive round score 10 to 8 respectively;

e. The winner and loser in an indecisive round with a single count score 10 to 8 respectively;

f. The winner and loser in a decisive round with a single count score 10 to 7 respectively; and

g. The contestant scoring two counts against his or her opponent will score 10 to 7.

2. Strikes are scored as follows:

a. Points are awarded for a correct Thai boxing style, combined with hard and accurate strikes;

b. Points are awarded for aggressive and dominating Muay Thai skill;

c. Points are awarded for a contestant actively dominating an opponent; and

d. Points are awarded for the use of a traditional Thai style of defense and counter-attack.

3. The following strikes will not receive points:

a. A strike which is against the rules;

b. A strike in defense against the leg or arm of an opponent; or

c. A weak strike.

4. Fouls will be scored as follows:

a. Any contestant who commits a foul will have one point deducted from his or her score for each foul committed;

b. The judges will deduct points for fouls as directed by the referee; and

c. Any foul observed by the judges but not by the referee, will be penalized accordingly.

J. Rounds.

1. Prior to the start of the first round, both contestants may perform the Wai Kru (paying respect to the teacher), accompanied by the appropriate Thai traditional music.

2. The number of rounds in a Muay Thai bout shall not exceed a maximum of five rounds.

3. The duration of each round shall be a maximum of three minutes, followed by a two-minute rest period after each non-final round.

History

• Amended by final rulemaking at 24 A.A.R. 445, effective 2/7/2018.

Ariz. Admin. Code § R19-2-D606 Toughman

A. Unless otherwise specified herein, R19-2-D602 shall apply to Toughman events, with the following exceptions:

1. Toughman contestants shall wear headgear, padded kidney belt, and abdominal guards, as approved by the Commission.

2. A bout shall consist of three one-minute rounds, with a one-minute rest period between each round, and may involve two or more contestants.

3. No kicking is permitted.

4. The following weight classes shall be used as a general guide:

| Weights | Weight Range in Pounds | | --- | --- | | Lightweight | Less than 140 | | Middleweight | 140 to 159.9 | | Light Heavyweight | 160 to 184.9 | | Heavyweight | 185+ |

The Commission reserves the right to disallow Toughman events or licenses for Toughman participants, if, in the Commission's discretion, the event or licensing would not be in the best interests of the combatants, the state, the industry, and the Commission.

History

• Amended by final rulemaking at 24 A.A.R. 445, effective 2/7/2018.

Ariz. Admin. Code § R19-2-D607 Exhibitions; Fee

A. Exhibitions may only be allowed if approved by both the Commission and the Executive Director, and shall be subject to all requirements of A.R.S. Title 5, Chapter 2, Article 2 and these rules adopted thereunder.

B. The fee for an Exhibition shall be $1000, to be paid by the promoter.

History

• Amended by final rulemaking at 24 A.A.R. 445, effective 2/7/2018.

Chapter 3 ARIZONA STATE LOTTERY COMMISSION

Article 1 EXPIRED

Ariz. Admin. Code § R19-3-101 Expired

History

• Adopted as an emergency effective May 26, 1981, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 81-3). New Section R4-37-101 adopted effective August 17, 1981 (Supp. 81-4). Amended effective September 12, 1989 (Supp. 89-3). R19-3-101 recodified from R4-37-101 (Supp. 95-1). Amended by final rulemaking at 12 A.A.R. 354, effective March 11, 2006 (Supp. 06-1). Section expired under A.R.S. § 41-1056(E) at 17 A.A.R. 300, effective January 31, 2011 (Supp. 11-1).

Article 2 RETAILERS

Ariz. Admin. Code § R19-3-201 Definitions

In this Article, unless the context otherwise requires:

1. "Act" means A.R.S. Title 5, Chapter 5.1, Article 2.

"Activated" means the process taken by retailers to make a pack of instant scratch tickets valid for sale to the general public.

3. "Age-restricted retailer" means a licensed provider of sales and redemptions services for Lottery products that also holds a series 06 or 14 liquor license issued by the Arizona Department of Liquor Licenses and Control.

4. "Chapter" means Arizona Administrative Code, Title 19, Chapter 3.

5. "Charitable Organization" means an organization including not more than one auxiliary, to which the United States Internal Revenue Service has issued a letter of determination of the organization's tax-exempt status, and the organization has operated for charitable purposes in Arizona for at least two years.

6. "Controlling agent" means a stockholder, director, officer, managerial employee, or other person directly or indirectly controlling or operating the retailer's business.

7. "Controlling person" means a person at least 21 years of age accountable for the Lottery license.

8. "Chain account retailer" means a group of stores in a retail chain utilizing one central bank account.

9. "Debit card" means an open loop bank card backed by a national financial entity with no diminishing value over time and that shall be honored by any retailer or bank with no fees to the card holder.

10. "Draw game ticket" or "On-line ticket" means a ticket purchased through a network of Lottery-authorized equipment linked to a central computer that records the wagers.

11. "Endorsement" means written approval and certification by the Lottery for a retailer with a general product license to provide additional games or services in accordance with specialized requirements.

9 12. "Flare" means the board or placard that accompanies each package of instant tab tickets and that has printed on or affixed to it the following information:

a. Game name,

b. Serial number,

c. Ticket count,

d. Prize structure, and

e. Cost per play.

13. "Fraternal Organization" means any organization within this state, except college and high school fraternities, not for pecuniary profit, which is a branch or lodge or chapter of a national or state organization and exists for the common business, brotherhood or other interests of its members and which national or state organization has so existed for two years in Arizona prior to making application for a license under this Article. Fraternal organization shall also include not more than one auxiliary of such organization.

"Guarantor" means a person who promises to pay the Licensee's debt to the Arizona Lottery in the event that the Licensee defaults on any payment obligation. A Licensee may act as their own guarantors, by pledging personal assets to ensure payment of debts.

10 15. "Instant scratch ticket" or "Scratchers^®" means an instant game ticket where the protective covering is made of latex or another substance that is scratched off.

11 16. "Instant tab ticket" or "instant pull tab" means an instant game ticket where the protective covering is a perforated paper tab that is opened. Instant tab ticket is the brand name for Arizona Lottery pull tabs.

12 17.

a. "Full product license" means a license to sell the products authorized by the Lottery.

b. "Charitable organization license" means a license issued to a qualified charitable organization to sell only instant tab tick-

c. "Instant tab license" means a license to sell only instant tab tickets.

d. "Limited license" means a license issued by the Lottery that restricts the duration of the license, the type of Lottery products sold, methods of selling, methods of validating Lottery products, or the type of applicant that qualifies for a Lottery license.

13 18. "Local premise manager" means a person who resides in Arizona that manages or is responsible for the operation of a premise or a number of premises.

14 19. "Minor" means an individual under the age of 18.

15. "On-line ticket" means a ticket purchased through a network of Lottery-authorized equipment linked to a central computer that records the wagers.

16 20. "Partial pack of tickets" means less than a complete pack of consecutively numbered and connected instant scratch tickets.

17 21. "Premise manager" means the contact representative for a specific premise of a business or charitable organization.

18. "Pull tab" means an instant game ticket where the protective covering is a perforated paper tab that is opened to reveal the predetermined winning and non-winning symbols.

"Person" means an individual, association, corporation, club, trust, estate, society, company, joint stock company, receiver, trustee or referee, any other person acting in a fiduciary or representative capacity who is appointed by a court, or any combination of individuals. Person includes any department, commission, agency or instrumentality of this state, including any county, city or town and any agency or instrumentality of this state or of a county, city or town.

19 23. "Raffle" means the selling of numbered tickets, where each ticket has an equal chance of winning a prize in a random drawing held after the completion of all ticket sales.

24. "Redemption Agent" means a retailer licensed to sell Lottery products in accordance with this Article and provide prize redemption services up to $4,999 as authorized by Arizona Revised Statutes § 5-569.

20 25. "Retailer" means a person licensed to sell Lottery products in accordance with this Article and provides prize redemption services up to $599.

21 26. "Retailer bonus" means a sum of money credited to the retailer in addition to the retailer commission for specific actions or efforts in selling or validating Lottery products.

22 27. "Retailer commission" means a retailer incentive designed to maximize the sale of Lottery products by establishing a specific percent of the sales price of each ticket sold as payment for services in selling Lottery tickets.

23 28. "Retailer compensation" means all types of cash and noncash compensation to the retailer for selling Lottery tickets.

24 29. "Retailer compensation profile" means the written document in which the Lottery Commission authorizes the Director to issue an order that contains all the fundamentals required by these rules for retailer compensation including commission, bonus, and incentive compensation to be credited to Lottery retailers.

25 30. "Retailer incentive" means cash and non-cash methods to motivate action by the Lottery retailer to stimulate sales.

26 31. "Sales benchmark" means sales objectives established by the Lottery based upon previous performance.

27 32. "Ticket" means one or more Lottery game plays.

28 33. "Validation" means confirmation of a winning Lottery ticket.

34. "Veterans' Organization" means any congressionally chartered organization within this state, or any branch, lodge or chapter of a national or state organization within this state, not for pecuniary profit, the membership of which consists of individuals who were members of the armed services or forces of the United States, which has been in existence for two years prior to making application for a license under this Article. Veterans' organization shall also include not more than one auxiliary of such organization.

History

• Adopted as an emergency effective May 26, 1981, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 81-3). New Section R4-37-201 adopted effective August 17, 1981 (Supp. 81-4). Amended subsection (A) effective September 14, 1983 (Supp. 83-5). Amended subsection (E) and added subsection (F) effective January 6, 1987 (Supp 87-1). Amended effective September 12, 1989 (Supp. 89-3). R19-3-201 recodified from R4-37-201 (Supp. 95-1). Amended effective October 9, 1998 (Supp. 98-4). Amended by final rulemaking at 10 A.A.R. 3073, effective September 11, 2004 (Supp. 04-3). Former R19-3-201 renumbered to R19-3-202 ; new R19-3-201 made by final rulemaking at 13 A.A.R. 2639, effective September 8, 2007 (Supp. 07-3). Amended by final rulemaking at 16 A.A.R. 2388, effective November 16, 2010 (Supp. 10-4). Amended by final rulemaking at 18 A.A.R. 1471, effective August 7, 2012 (Supp. 12-2). Amended by final rulemaking at 22 A.A.R. 1379, effective 7/8/2016. Amended by final rulemaking at 28 A.A.R. 439, effective 4/5/2022.

Ariz. Admin. Code § R19-3-202 General Requirements for All Retailer License Applications

A. Only retailers licensed in accordance with this Article may sell Lottery products.

B. All applicants shall provide the Director with the following to apply for a license to sell Lottery tickets:

1. A verified application on forms prescribed by the Director containing the following information:

a. The applicant's name, and if different, the trade name of the business premise, address of the physical location of the place of business, the mailing address if different, email address, primary phone number, and secondary phone number;

b. The applicant's current transaction privilege tax license number issued under A.R.S. § 42-5005 and federal taxpayer identification number issued by the Internal Revenue Service and recorded on Form W-9;

c. Certification that access to the applicant's business complies with the Americans with Disabilities Act;

d. Marketing and sales information on the forms provided by the Lottery. The information required includes the number of cash registers, hours of operation, products presently offered for sale, and the approximate daily volume of customers entering the place of business;

e. Evidence the applicant operates a business with other products or services unrelated to lottery products or services concerning lotteries;

f. Financial relationship and any outstanding debt owed to the state of Arizona, any of its political subdivisions, or the United States government;

g. Evidence the applicant for a license other than a charitable organization license is financially solvent. The evidence may include either of the following:

i. Evidence the applicant has established business credit, has a record of meeting its business debts as they became due for the three years immediately preceding the date of application, and does not have outstanding legal actions, judgments, or tax liens; or

ii. Personal guarantee, in writing, of applicant's Lottery account signed by a guarantor and the guarantor's spouse, if community property is being used to guarantee the account, or by the guarantor only, if guarantor provides proof that the guarantee is based on sole and separate property. The guarantor shall provide a written authorization to perform a credit check. If the guarantee is based on community property, the guarantor and guarantor's spouse shall provide written authorization for the Lottery to perform a credit check.

h. An Electronic Funds Transfer Authorization agreement showing a valid bank account number for the full product applicant from which the Lottery will withdraw any amounts due.

i. Government-issued current proof of identification including a photo.

2. If the applicant does business as a sole proprietorship or partnership:

a. The name, home address, and home phone number of each owner or partner, including spouse if community property owner, unless applicant provides proof that the business is sole property separate from the community; and

b. Written authorization and tax identification number for the business entity and Social Security number of each applicant in order to obtain a credit check from a credit reporting agency.

3. If the applicant does business as a limited liability partnership ("LLP") or a limited liability company ("LLC"):

a. The name, home address, email address, primary phone number, and secondary phone number of each partner or member, or the local premise manager if the partners or members are out of state; and

b. Written authorization and a tax identification number to perform a credit check.

4. If the applicant does business as a corporation:

a. The name, corporate address, and corporate phone number of each officer and director, and the name, home address email address, primary phone number, and secondary phone number of the responsible local premise manager who is the contact representative for the applicant's corporate location in Arizona; and

b. Written authorization and a tax identification number to perform a credit check.

5. If the applicant does business as a charitable organization:

a. A copy of the organization charter or formation, documentation of current membership status in the organization, and if applicable, the authorization of the auxiliary;

b. The name, home address, email address, primary phone number, and secondary phone number of each officer and local premise manager, or if an auxiliary, of each officer and local premise manager of the auxiliary;

c. A letter of determination issued in the organization's name by the United States Internal Revenue Service verifying the organization's tax-exempt status; and

d. Evidence the charitable organization has maintained a premise within the state of Arizona for the two years immediately preceding the date of application.

6. If the Lottery licenses an applicant under subsection (1)(g)(ii), the guarantor shall provide a written authorization to perform a credit check. If the guarantee is based on community property, the guarantor and guarantor's spouse shall provide written authorization for the Lottery to perform a credit check.

7 6. An application fee of $45.00, or if the applicant does business as a corporation, limited liability company, limited liability partnership, or partnership, an application fee of $67 which includes a credit check fee.

8 7. If the applicant is a business with more than one currently licensed location, the application fee for the new location shall be prorated at $1.25 per month from the application date until the date the other licenses are due for renewal under R19-3-202.04(B)(3).

9 8. If the applicant's personal information shows no history through a public records criminal background check, the Lottery may require a completed authorized fingerprint card and fee per A.R.S. § 41-1750(G)(2) and (J).

B C. Applicants must demonstrate good character and reputation. The Lottery may find that a person lacks good character and reputation if it determines the person has committed any act which, if committed by a licensed retailer, would be grounds for suspension or revocation of a license granted by the state of Arizona pursuant to R19-3-204(B).

C D. An applicant, a director or officer of a corporation, partner, or member of a limited liability company, or charitable organization has not had a business license required by statute in Arizona or any other state suspended or revoked within the last 12 months.

D E. An applicant, a director or officer of a corporation, partner, or member of a limited liability company, or charitable organization has not had a Lottery license denied or revoked at the address and location of the applicant's place of business, and/or has not sold Lottery products without being licensed within the 12 months preceding the person's application.

F. An applicant must demonstrate financial solvency based on the information obtained through the application, credit check, or pending litigation, if any, or tax liens, if any.

G. An applicant must be one of the following to fulfill residency requirements:

1. A resident of Arizona;

2. A corporation incorporated in Arizona or authorized to do business in Arizona;

3. A limited liability company authorized to do business in Arizona in which a member or manager resides in Arizona, or if none of the members or managers resides in Arizona, the applicant shall provide a personal guarantor who is an Arizona resident;

4. A partnership in which at least one of the general partners resides in Arizona;

5. A limited liability partnership in which at least one of the partners resides in Arizona; or

6. A charitable organization authorized to do business in Arizona.

History

• Adopted as an emergency effective May 26, 1981, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 81-3). New Section R4-37-202 adopted effective August 17, 1981 (Supp. 81-4). Spelling correction, subsection (A) to adoption effective August 17, 1981 (Supp. 87-1). Amended effective September 12, 1989 (Supp. 89-3). R19-3-202 recodified from R4-37-202 (Supp. 95-1). Section repealed; new Section R19-3-202 renumbered from R19-3-203 and amended effective October 9, 1998 (Supp. 98-4). Amended by final rulemaking at 10 A.A.R. 3073, effective September 11, 2004 (Supp. 04-3). Former R19-3-202 renumbered to R19-3-203 ; new R19-3-202 renumbered from R19-3-201 and amended by final rulemaking at 13 A.A.R. 2639, effective September 8, 2007 (Supp. 07-3). Amended by final rulemaking at 16 A.A.R. 2388, effective November 16, 2010 (Supp. 10-4). Amended by final rulemaking at 18 A.A.R. 1471, effective August 7, 2012 (Supp. 12-2). Amended by final rulemaking at 20 A.A.R. 953, effective 6/1/2014. Amended by final rulemaking at 22 A.A.R. 1379, effective 7/8/2016. Amended by final rulemaking at 28 A.A.R. 439, effective 4/5/2022.

Ariz. Admin. Code § R19-3-202.01 License Endorsement Types; Specific Requirements

A. Evidence the applicant is of good character and reputation. The Lottery may find that a person lacks good character and reputation if it determines the person has committed any act which, if committed by a licensed retailer, would be grounds for suspension or revocation of a license granted by the state of Arizona.

B. An applicant, a director or officer of a corporation, partner, or member of a limited liability company, or charitable organization shall not have had a business license required by statute in Arizona or any other state suspended or revoked within the last 12 months.

C. An applicant, a director or officer of a corporation, partner, or member of a limited liability company, or charitable organization shall not have had a Lottery license denied or revoked at the address and location of the applicant's place of business for reasons other than noncompliance with the Americans with Disabilities Act, and shall not have sold Lottery products without being licensed within one year of the person's date of application.

D. An applicant for a license other than an instant tab license or charitable organization license shall have demonstrated financial solvency based on the information obtained through the application, credit check, or pending litigation, if any, or tax liens, if any.

E. An applicant shall be one of the following to fulfill residency requirements:

1. A resident of Arizona;

2. A corporation incorporated in Arizona or authorized to do business in Arizona;

3. A limited liability company authorized to do business in Arizona in which a member or manager resides in Arizona, or if none of the members or managers resides in Arizona, the applicant shall provide a personal guarantor who is an Arizona resident;

4. A partnership in which at least one of the general partners resides in Arizona;

5. A limited liability partnership in which at least one of the partners resides in Arizona; or

6. A charitable organization authorized to do business in Arizona.

F. As a condition of licensure, each retailer shall agree to release, indemnify, defend, and hold harmless, the Lottery, its commissioners, officers, and employees, from and against any and all liability, damage, cost, claim, loss, or expense, including, without limitation, reasonable attorney's fees and disbursements, resulting from or arising by reason of loss of use, temporary or permanent cessation of Lottery equipment, or terminal operations. This should not be construed in any way to affect the rights of the retailer to recover for losses caused by any third party.

A. Lottery retailers shall hold a general product license in addition to any qualifying endorsements. Retailers who qualify for specific license endorsements may submit the additional required information when applying for a general product license, or at a later date.

B. A retailer with a license endorsement may voluntarily relinquish the endorsement in writing at any time. Relinquishment of an endorsement will not automatically terminate the general product license.

C. General Product License

1. A general product license permits a retailer to sell all Lottery products that do not require a specific license endorsement under this section.

Retailers selling Lottery products or providing Lottery services prior to receiving applicable license endorsements are in violation of this Article.

3. Retailers with a general product license shall refer prizewinners of prizes greater than $599 to an official Lottery office for validation and redemption.

D. Charitable. A charitable endorsement permits the licensed retailer to sell Lottery products in accordance with A.R.S. § 5-554(H). Applicants for a charitable endorsement must provide documentation of the following:

1. Recognition by the United States Internal Revenue Service of the licensee's tax-exempt status,

2. Operation within the state of Arizona for at least two years.

E. Keno

1. A Keno endorsement permits the licensed retailer to offer Keno in accordance with A.R.S. § 5-554(J) and (K). Applicants for a Keno endorsement must provide documentation of one of the following:

a. Fraternal organization auxiliary location,

b. Veterans' organization auxiliary location, or

c. Racetrack enclosure or additional wagering facility where pari-mutuel wagering on horse races is conducted.

Applicants for a Keno endorsement must demonstrate to the Lottery that the physical location of the retail facility is located at least five miles from an Indian gaming facility.

F. Redemption Agent

1. A Redemption Agent endorsement permits the licensed retailer to validate and pay winning Lottery tickets up to $4,999.

2. Applicants for a Redemption Agent endorsement must demonstrate the ability to pay prizes up to $4,999 in accordance with this Article.

3. A retailer with a Redemption Agent endorsement shall provide a separate accounting of Lottery monies upon request by the Lottery.

4. A retailer with a Redemption Agent endorsement is responsible for verification of identity and social security number and shall require prizewinners to provide acceptable identification and documentation.

5. Payment for any prizewinners who cannot provide required documentation shall be referred to an official Lottery office.

6. The confidentiality of all player data shall be maintained at all times. Disclosing any personal information to anyone other than the Lottery or as required by law is prohibited. Any known or suspected loss of protected data must be reported to Lottery within one hour.

7. For prizes over $599, retailers with a Redemption Agent endorsement shall determine, through the Lottery provided terminal and prior to paying the prize, whether the holder of a winning lottery ticket is subject to Arizona debt set-off requirements under A.R.S. § 5-575. Prizewinners shall be referred to an official Lottery office if Retailer is notified as such through the claim redemption process.

8. Retailers with a Redemption Agent endorsement shall provide claim documentation and original tickets for each validation to Lottery at the end of each week.

G. Route Services

1. Applicants for a Route Services endorsement must have sufficient space for installation of Lottery equipment as close to the front of the store as reasonably possible. Equipment shall be close to the checkout area and/or entry/exit door and in regular view of retail staff.

2. Retailer shall deposit Lottery cash receipts on behalf of the Lottery and timely return any adjustment forms and/or request for credit.

Lottery may compensate a retailer with a Route Services endorsement with a periodic rental fee for the space occupied by each vending machine.

H. The Lottery may issue a limited license with regard to duration, type of products, methods of selling or validating products, or qualification requirements.

History

• New Section made by final rulemaking at 18 A.A.R. 1471, effective August 7, 2012 (Supp. 12-2). Amended by final rulemaking at 22 A.A.R. 1379, effective 7/8/2016. Amended by final rulemaking at 28 A.A.R. 439, effective 4/5/2022.

Ariz. Admin. Code § R19-3-202.02 Time-frame for Licensure

A. For the purpose of A.R.S. §§ 41-1072 through 41-1079, the Director establishes the time-frames for a license to sell Lottery tickets:

1. Administrative completeness review time-frame: 15 days.

2. Substantive review time-frame: 75 days.

Overall time-frame: 90 days.

B. The Director shall finish an administrative completeness review within 15 days from the date of receipt of the application and fees prescribed in R19-3-202 .

1. The Director shall issue a notice of administrative completeness to the applicant if no deficiencies are found in the application.

2 1. If the application is incomplete or the fee is not submitted, the Director shall provide the applicant with a written notice that includes a comprehensive list of the missing or deficient information.

3 2. The 15-day time-frame for the administrative completeness review is suspended from the date the notice of incompleteness is sent until the applicant provides the Director with all missing information.

4 3. If the Director does not provide the applicant with notice regarding administrative completeness, the application shall be deemed complete 15 days after receipt by the Director.

C. An applicant shall respond to a request for missing information within 20 days of notice of incompleteness.

D. If an applicant fails to submit a complete application within the time allowed, the Director may close the applicant's file. An applicant whose file is closed and who later wishes to obtain a license shall apply again according to R19-3-202.

E. From the date on which the administrative completeness review of an application is finished, the Director shall complete a substantive review of the applicant's qualifications in no more than 75 days.

1. If an applicant is found to be ineligible, the Director shall issue a written notice of denial to the applicant.

2. If an applicant is found to be eligible for a license, the Director shall issue a license to the applicant permitting the applicant to engage in business as a retailer under the terms of this Chapter.

If the Director finds deficiencies during the substantive review of an application, the Director shall issue a written request to the applicant for additional information.

4. The 75-day time-frame for substantive review is suspended from the date of a written request for additional information until the date that all information is received.

5. If the applicant and the Director mutually agree in writing, the 75-day substantive review time-frame may be extended.

F. If the Director does not provide the applicant with written notice granting or denying a license within the overall time-frame, the Director shall refund the applicant's application fee within 30 days after the expiration of the overall time-frame or the time-frame extension.

History

• New Section made by final rulemaking at 18 A.A.R. 1471, effective August 7, 2012 (Supp. 12-2). Amended by final rulemaking at 28 A.A.R. 439, effective 4/5/2022.

Ariz. Admin. Code § R19-3-202.03 Indemnification

The Lottery shall not issue a license to an applicant if any of the following applies:

1. The applicant is a minor, a partnership or LLP in which one of the partners is a minor, an LLC in which one of the members or managers is a minor, or a corporation in which a corporate officer, director, or manager of Lottery sales is a minor;

2. The organization is an adult-oriented business as defined in A.R.S. § 13-1422 or displays sexually explicit material in violation of A.R.S. § 13-3507 ;

3. The applicant has sold a Lottery product without a license, or operated gaming machines or equipment that are required to be licensed, without a license, or

4. The applicant fails to have a controlling person at least 21 years of age; or

5. The organization is an age-restricted business that does not have a valid series 06 or 14 liquor license issued by the Arizona Department of Liquor Licenses and Control.

As a condition of licensure, each retailer shall agree to release, indemnify, defend, and hold harmless, the Lottery, its commissioners, officers, and employees, from and against any and all liability, damage, cost, claim, loss, or expense, including, without limitation, reasonable attorney's fees and disbursements, resulting from or arising by reason of loss of use, temporary or permanent cessation of Lottery systems, equipment, or terminal operations. This should not be construed in any way to affect the rights of the retailer to recover for losses caused by any third party.

History

• New Section made by final rulemaking at 18 A.A.R. 1471, effective August 7, 2012 (Supp. 12-2). Amended by final rulemaking at 22 A.A.R. 1379, effective 7/8/2016. Adopted by final rulemaking at 28 A.A.R. 439, effective 4/5/2022.

Ariz. Admin. Code § R19-3-202.04 Duration and Renewal of License

A. Any license issued under this Chapter shall expire three years from the license issuance date by operation of law.

B. A retailer may renew a license to sell Lottery tickets by submitting to the Director a verified application for license renewal on forms prescribed by the Director containing the information required in R19-3-202 and R19-3-202.01 . By filing an application for renewal, a retailer holding a full product license or limited license authorizes the Lottery to collect a $45.00 renewal fee by an electronic transfer of funds from the bank account from which the Lottery regularly bills the retailer. A retailer holding a charitable organization license or instant tab license shall submit cash, check, or a money order for $45 with its renewal application.

1. An application for renewal of a Lottery license received by the Director or deposited in the United States mail postage prepaid on or before the renewal date shall authorize the retailer to continue to operate until actual issuance of the renewal license.

2. The Director may refuse to renew a license according to the provisions of R19-3-204.

3. A retailer holding more than one license may elect to renew all licenses on the same date. If more than one license is renewed under this subsection, the application fee shall be pro-rated at $1.25 per month from the license expiration date until the next renewal date of the other licenses held by the same retailer.

C. A license issued under this Chapter is subject to termination by the Director according to the provisions of this Chapter.

D. A retailer may voluntarily surrender a license unless an investigation or action has been initiated against the retailer.

E. The Lottery may issue a license which is limited with regard to duration, type of products, methods of selling or validating products, or qualification requirements.

History

• New Section made by final rulemaking at 18 A.A.R. 1471, effective August 7, 2012 (Supp. 12-2). Amended by final rulemaking at 22 A.A.R. 1379, effective 7/8/2016. Amended by final rulemaking at 28 A.A.R. 439, effective 4/5/2022.

Ariz. Admin. Code § R19-3-202.05 Display of License and Point-of-sale Material

A. A retailer shall conspicuously display to the public that it is a licensed Lottery retailer. A retailer may do this by:

1. Posting the Lottery license in a prominent place on the premises; or

Posting the authorized Lottery retailer decal in a prominent place in public view, and retaining a copy of the license on the premise, available upon request.

B. A retailer shall prominently display the Americans with Disabilities Act Notice and Arizona Problem Gambling Helpline toll-free telephone number.

C. A retailer holding a charitable organization license or instant tab license shall prominently display the flare for each instant tab game currently on sale at or near the point of sale.

D. A violation of this subsection is grounds for disciplinary action according to the provisions of R19-3-204.

History

• New Section made by final rulemaking at 18 A.A.R. 1471, effective August 7, 2012 (Supp. 12-2).

Ariz. Admin. Code § R19-3-202.06 Use of Lottery Logo and Trademark

A. Only a licensed retailer may use the logos, trademarks, or other advertising materials of the Lottery:

1. With prior written permission or authorization from the Lottery;

Except for materials provided by the Lottery.

B. A retailer shall not display or publish on the licensed premises material which may be considered derogatory or adverse to the operation or dignity of the Lottery or the state of Arizona. A retailer shall remove any such materials from the licensed premise upon request of the Lottery.

History

• New Section made by final rulemaking at 18 A.A.R. 1471, effective August 7, 2012 (Supp. 12-2). Amended by final rulemaking at 28 A.A.R. 439, effective 4/5/2022.

Ariz. Admin. Code § R19-3-203 Direct and Promotional Sales

A. The Lottery may sell Lottery tickets at its main office or any branch it establishes in the state.

B. The Lottery may sell Lottery tickets at any promotional event.

C. The Lottery may temporarily authorize a licensed retailer to sell Lottery tickets at a secondary location for a promotional event.

History

• Adopted as an emergency effective May 26, 1981, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 81-3). New Section R5-37-203 adopted effective August 17, 1981 (Supp. 81-4). Amended effective September 12, 1989 (Supp. 89-3). R19-2-203 recodified from R4-37-203 (Supp. 95-1). R19-2-203 renumbered to R19-3-202 ; new Section R19-2-203 renumbered from R19-4-204 and amended effective October 9, 1998 (Supp. 98-4). Amended by final rulemaking at 6 A.A.R. 914, effective February 10, 2000 (Supp. 00-1). Amended by final rulemaking at 10 A.A.R. 3073, effective September 11, 2004 (Supp. 04-3). Former R19-3-203 renumbered to R19-3-204 ; new R19-3-203 renumbered from R19-3-202 by final rulemaking at 13 A.A.R. 2639, effective September 8, 2007 (Supp. 07-3). Amended by final rulemaking at 18 A.A.R. 1471, effective August 7, 2012 (Supp. 12-2). Amended by final rulemaking at 28 A.A.R. 439, effective 4/5/2022.

Ariz. Admin. Code § R19-3-204 Denial, Revocation, or Suspension of Retailer's License

A. The Lottery shall not issue or renew a license to an applicant if any of the following applies:

1. The applicant is a minor, a partnership or LLP in which one of the partners is a minor, an LLC in which one of the members or managers is a minor, or a corporation in which a corporate officer, director, or manager of Lottery sales is a minor;

2. The organization is an adult-oriented business as defined in A.R.S. § 13-1422 or displays sexually explicit material in violation of A.R.S. § 13-3507;

3. The applicant has sold a Lottery product without a license, or operated gaming machines or equipment that are required to be licensed, without a license, within one year of the person's date of application;

4. The applicant fails to have a controlling person at least 21 years of age; or

5. The applicant fails to meet all the application requirements of R19-3-202 and R19-3-201.01.

A B. A license may be revoked, suspended, or denied renewal by the Director for any of the following reasons:

1. The retailer violates a provision of the criminal laws of the state of Arizona or the United States, which could be punished by jail time or imprisonment;

2. The retailer offers to sell a Lottery ticket, sells a Lottery ticket, or pays a prize on any winning Lottery ticket to a person under 21 years of age;

3. The retailer sells a Lottery ticket in any transaction to a person using a public assistance voucher issued by any public entity or an electronic benefits transfer card issued by the Arizona Department of Economic Security;

4. The retailer fails to maintain minimum sales requirements or does not follow the guidelines established by the Lottery. The Lottery shall provide minimum sales requirements to retailers at least 30 days prior to the effective change date;

5. The retailer commits an act that impairs the retailer's reputation for honesty and integrity;

6. The retailer sells a ticket at a price greater than face value;

7. The retailer pays less than the full prize value of the ticket at validation;

8. The retailer advises a player that a winning ticket presented for validation was not a prize winner;

9. The retailer sells tickets not activated for sale on three or more occasions within any 12-month period;

10. The retailer sells a ticket while license is suspended for insufficient funds;

11. The retailer does not make purchase or redemption of Lottery tickets convenient and readily accessible to the public;

12. The retailer provides to the Lottery a statement, representation, warranty, or certificate that the Lottery determines is false, incorrect, incomplete, or omits relevant information;

13. The retailer's actions cause two or more payments to be returned to the Lottery for insufficient funds;

14. The retailer becomes insolvent, unable or unwilling to pay debts, or is declared bankrupt;

15. The retailer, or officer, director, partner, LLC member or manager, controlling agent, or local premise manager of the retailer:

a. Is convicted of a felony, felony theft that is designated as a misdemeanor, misdemeanor theft, embezzlement, or a crime involving gambling or fraudulent schemes and artifices; or

b. Is the subject of a civil order, judgment, or decree of a federal or state authority for misrepresentation, consumer fraud, or any other fraud.

16. Facts are discovered which, if known at the time the retailer's license was issued or renewed, would have been grounds to deny licensure;

17. The retailer adds a minor as an owner, partner, officer, or controlling agent of the business;

18. The retailer, or an officer, employee, or agent of the retailer does any of the following:

a. Plays any Lottery game while working,

b. Fails to purchase or validate the ticket from another on-duty employee or through a Lottery product vending machine, or

c. Fails to pay for the ticket prior to playing the Lottery game.

19. The retailer, or an officer, employee, or agent of the retailer sells any Lottery product for consideration other than U.S. currency, check, credit card, debit card or, if a player requests, the exchange of a winning Lottery ticket;

20. The retailer, or an officer, employee, or agent of the retailer sells a Lottery ticket by telephone, mail, fax, on the internet, or on premises not authorized by the Lottery;

21. The retailer, or an officer, employee, or agent of the retailer sells an altered Lottery ticket, an expired Lottery ticket, or a Lottery ticket after the announced end of the game;

22. The retailer fails to display the Authorized Retailer Notice, which includes the Americans with Disabilities Act Notice and Arizona Problem Gambling Helpline toll-free telephone number;

23. The retailer fails to report a change event defined in R19-3-210 ;

24. The retailer fails to comply or cooperate with an investigation concerning Arizona state laws, Lottery regulations, or denies access to Lottery personnel;

25. The retailer selling instant tab tickets fails to prominently display the flare for each instant tab game currently on sale within public view near the point of sale;

26. The retailer holding a charitable organization license no longer qualifies as a charitable organization or its letter of determination of tax-exempt status is suspended or revoked;

27. The retailer fails to comply with the rules governing its license; or

A retailer violates a provision of the state of Arizona liquor laws under A.R.S. Title 4.

29. A retailer violates a provision of the state of Arizona gaming laws under A.R.S. Title 5, Chapters 1 through 4.

30. A retailer harasses or displays violence towards any Lottery player, employee, vendor, or subcontractor.

B C. An investigation of a violation of Lottery rules may be initiated by action of the Director or by a written complaint of any person.

1. An investigation initiated by a written complaint shall be investigated within 30 days of receiving the complaint.

2. During an investigation the Director may temporarily suspend a license under an emergency action, or impose specific conditions on a retailer.

C D. An action to suspend or revoke a license shall be initiated by a notice of action to the retailer. Notice may be made by mail, handdelivery, or electronic mail with a copy by regular mail.

1. Notice to the retailer is effective notice if it is sent to the address in the application or the last address provided under R19-3-210.

2. A hard copy of the notice is not required if the retailer has consented in writing to receive notices via electronic mail.

History

• Adopted as an emergency effective May 26, 1981, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 81-3). New Section R4-37-204 adopted effective August 17, 1981 (Supp. 81-4). Amended as an emergency effective June 26, 1983 pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 83-3). Correction, former emergency amendment shown effective June 26, 1983 should read effective June 10, 1983. Former emergency amendment now adopted as a permanent amendment without change effective September 14, 1983 (Supp. 83-5). Amended effective March 6, 1986 (Supp. 86-2). Amended subsection (B) effective January 6, 1987 (Supp. 87-1). Amended effective September 12, 1989 (Supp. 89-3). R19-3-204 recodified from R4-37-204 (Supp. 95-1). Section R19-3-204 renumbered to R19-3-203 ; new Section R19-3-204 renumbered from R19-3-205 and amended effective October 9, 1998 (Supp. 98-4). Amended by final rulemaking at 10 A.A.R. 3073, effective September 11, 2004 (Supp. 04-3). Former R19-3-204 repealed; new R19-3-204 renumbered from R19-3-203 and amended by final rulemaking at 13 A.A.R. 2639, effective September 8, 2007 (Supp. 07-3). Amended by final rulemaking at 16 A.A.R. 2388, effective November 16, 2010 (Supp. 10-4). Amended by final rulemaking at 18 A.A.R. 1471, effective August 7, 2012 (Supp. 12-2). Amended by final rulemaking at 22 A.A.R. 1379, effective 7/8/2016. Amended by final rulemaking at 28 A.A.R. 439, effective 4/5/2022.

Ariz. Admin. Code § R19-3-204.01 Procedure for Requesting a Hearing

A. A retailer may request a hearing on any notice to deny, revoke, or suspend a Lottery license.

B. The hearing shall be held before the Office of Administrative Hearings. The procedures and requirements set forth in A.R.S. Title 41, Chapter 6, Article 10 apply to hearings under this subsection.

C. The Director may accept, modify, reject, or allow the recommended decision of the Administrative Law Judge to become final by expiration of time. This is a final administrative decision of the Lottery.

History

• New Section made by final rulemaking at 18 A.A.R. 1471, effective August 7, 2012 (Supp. 12-2). Amended by final rulemaking at 28 A.A.R. 439, effective 4/5/2022.

Ariz. Admin. Code § R19-3-204.02 Lottery Determination of Need for Emergency Action

A. The Director may determine the need for emergency action to disable a retailer's Lottery-issued equipment, suspend sales of Lottery games, or remove tickets if the public welfare is threatened pending a proceeding for revocation, suspension, or denial of renewal, in the following circumstances:

1. The Lottery's regularly-scheduled electronic transfer of the retailer's bank account is unsuccessful;

2. The retailer fails to comply or cooperate with an investigation concerning Arizona state laws or Lottery regulations;

3. The retailer, or officer, director, partner, LLC member or manager, controlling agent, or local premise manager is charged with a felony, felony theft that is designated as a misdemeanor, misdemeanor theft, embezzlement, or a crime involving gambling or fraudulent schemes and artifices;

4. The retailer sells a Lottery ticket in any transaction to a person using a public assistance voucher issued by any public entity or an electronic benefits transfer card issued by the Arizona Department of Economic Security;

5. The retailer, or an officer, employee, or agent of the retailer sells an altered or expired Lottery ticket, or a Lottery ticket after the announced end of the game;

6. The retailer sells a ticket at a price greater than face value, including adding debit card fees to Lottery purchases;

7. The retailer pays less than the full prize value of the ticket at validation;

8. A retailer violates a provision of the state of Arizona liquor laws under A.R.S. § 4-101 Title 4.

9. A retailer violates a provision of the state of Arizona gaming laws under A.R.S. Title 5, Chapters 1 through 4

10. The retailer offers to sell a Lottery ticket, sells a Lottery ticket, or pays a prize on any winning Lottery ticket to a person under 21 years of age;

11. The retailer advises a player that a winning ticket presented for validation was not a prize winner;

12. The retailer, or an officer, employee, or agent of the retailer sells any Lottery product for consideration other than U.S. currency, check, credit card, debit card or, if a player requests, the exchange of a winning Lottery ticket;

13. The retailer, or an officer, employee, or agent of the retailer sells a Lottery ticket by telephone, mail, fax, on the internet, or on premises not authorized by the Lottery;

B. A retailer who receives a Notice of Intent to Revoke a Retailer's License with a finding of emergency action shall:

1. Immediately cease all sales of Lottery products, and

2. Surrender the license and all other Lottery property and products upon request by the Director's representative.

Immediately settle all financial accounts with the Lottery.

C. The Director shall notify the retailer in writing within five days of taking an emergency action that an expedited hearing or informal conference may be obtained before the Office of Administrative Hearings under A.A.C. R2-19-103 and A.A.C. R2-19-110.

D. If the retailer fails to settle the financial account and surrender the license and all other Lottery property and products, the Director shall take steps allowed by law to secure payment and return of Lottery property and products.

History

• New Section made by final rulemaking at 18 A.A.R. 1471, effective August 7, 2012 (Supp. 12-2). Amended by final rulemaking at 22 A.A.R. 1379, effective 7/8/2016. Amended by final rulemaking at 28 A.A.R. 439, effective 4/5/2022.

Ariz. Admin. Code § R19-3-204.03 Appealing a Final Administrative Decision of the Lottery

A. An optional motion for rehearing may be made to the Lottery Commission by filing a Notice of Appeal to the Lottery Commission within 10 days of receipt of the final administrative decision.

1. The notice shall contain:

a. A copy of the Director's final administrative decision, and

b. The alleged factual or legal error in the final administrative decision from which the appeal is taken.

A person appealing the decision of the Director may file a written brief stating the factual and legal position on the appeal within 30 days after receipt of the decision being appealed.

3. The Lottery may file a response brief within 15 days after receipt of the appellant's brief.

4. The Lottery Commission may rule based on the written briefs, or if requested, may provide for oral argument.

5. The Lottery Commission shall make its ruling on the appeal on the record.

6. A decision of the Lottery Commission is a final administrative decision subject to judicial review under A.R.S. Title 12, Chapter 7, Article 6.

B. A direct appeal of a final decision of the Director under R19-3-204.01(C) may be taken for judicial review pursuant to A.R.S. Title 12, Chapter 7, Article 6.

History

• New Section made by final rulemaking at 18 A.A.R. 1471, effective August 7, 2012 (Supp. 12-2).

Ariz. Admin. Code § R19-3-204.04 Surrender of Lottery Equipment and Property Upon Revocation

A. A retailer who discontinues their license or receives a final administrative decision revoking the license shall:

Immediately cease all sales of Lottery products; and

2. Surrender the license and all other Lottery equipment, property, and products upon request of the Director's representative.

3. Immediately settle all financial accounts with the Lottery.

B. If the retailer fails to settle the financial account and surrender the license and all other Lottery property and products, the Director shall take all steps allowed by law to secure payment and the return of Lottery property and products.

History

• New Section made by final rulemaking at 18 A.A.R. 1471, effective August 7, 2012 (Supp. 12-2). Amended by final rulemaking at 28 A.A.R. 439, effective 4/5/2022.

Ariz. Admin. Code § R19-3-205 Lottery-issued Equipment

A. Retailers selling only instant tab products shall not be issued Lottery terminal equipment to sell or validate Lottery products, but may use an authorized Lottery product vending machine in accordance with subsection (C).

B. Retailers shall only sell or validate Lottery products using authorized Lottery-issued equipment.

1. A retailer shall locate the equipment at a site approved by the Lottery and shall not move the equipment from that site without prior approval from the Lottery.

2. A retailer shall ensure electrical service to the equipment location is installed according to the specifications established by the Lottery. The cost of electrical service shall be the responsibility of the retailer.

A retailer shall cooperate with the Lottery to the extent reasonable and practicable to accomplish any modifications to the equipment or systems in a timely and economical fashion.

The Lottery shall not be liable for damages of any kind due to interruption or failure of any Lottery-issued or authorized equipment.

5. A retailer shall operate the Lottery-issued equipment and accessories only in the ordinary course of its Lottery business and only according to the requirements established by the Lottery.

6. A retailer shall exercise diligence and care to prevent damage to the Lottery-issued equipment and other property of the Lottery, or property of Lottery contractors.

7. A retailer shall maintain the Lottery-issued equipment and accessories in a clean and orderly condition.

8. A retailer shall minimize equipment downtime by notifying the Lottery or its contractor immediately of any equipment failure, malfunction, damage, or accident.

9. A retailer shall make the equipment available for repair, adjustment, or replacement at all times during the retailer's regular business hours.

10. A retailer shall order and use equipment supplies exclusively from the Lottery or its designated contractor. The Lottery shall furnish equipment supplies, at no cost, to the retailer.

11. A retailer shall install and use only approved Lottery paper stock, for Lottery-issued equipment, specifically assigned to that retailer and location.

C. Retailers may sell tickets using the appropriate authorized Lottery product vending machine in accordance with the Act and this Chapter.

1. A retailer shall establish loss prevention policies to ensure Lottery product vending machines are not operated by persons under 21 years of age to purchase Lottery tickets.

2. The Lottery product vending machine shall remain operational during the retailer's regular business hours and be placed in an area visible to retail personnel and easily accessible to players.

3. A retailer shall maintain an adequate supply of tickets and paperstock in the Lottery product vending machine.

D. All Lottery licensed retailers shall provide an accessible path of travel to, and sufficient clear floor space at, all Lottery equipment and other areas where Lottery products are sold, and any associated Lottery materials and redemption areas. Should individuals with disabilities request assistance in accessing Lottery programs, services or activities and in purchasing and redeeming Lottery tickets and products, any licensed retailers shall provide assistance.

E. "Authorized Lottery-issued equipment" may include Lottery-owned or rented equipment, or equipment provided to a retailer by a Lottery approved and authorized third-party vendor in accordance with an appropriate Lottery-vendor contract.

History

• Adopted as an emergency effective May 26, 1981, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 81-3). New Sections R4-37-205 adopted effective August 17, 1981 (Supp. 81-4). Amended effective September 12, 1989 (Supp. 89-3). R19-3-205 recodified from R4-37-205 (Supp. 95-1). Section R19-3-205 renumbered to R19-3-204 ; new Section R19-3-205 renumbered from R19-3-206 and amended effective October 9, 1998 (Supp. 98-4). Amended by final rulemaking at 10 A.A.R. 3073, effective September 11, 2004 (Supp. 04-3). Amended by final rulemaking at 13 A.A.R. 2639, effective September 8, 2007 (Supp. 07-3). Amended by final rulemaking at 16 A.A.R. 2388, effective November 16, 2010 (Supp. 10-4). Amended by final rulemaking at 18 A.A.R. 1471, effective August 7, 2012 (Supp. 12-2). Amended by final rulemaking at 22 A.A.R. 1379, effective 7/8/2016. Amended by final rulemaking at 28 A.A.R. 439, effective 4/5/2022.

Ariz. Admin. Code § R19-3-206 Retailer Training

A. A licensed retailer shall participate in training provided by the Lottery in the operation of Lottery equipment and sale of Lottery products. Training may take place at a retailer's place of business.

B. A licensed retailer shall ensure all employees selling Lottery products or operating Lottery equipment are:

1. Properly trained in these areas prior to actually selling any Lottery products; and

2. Ensure all employees have access to all materials and videos provided by the Lottery relating to the sales and promotion of Lottery products and the operation of Lottery equipment.

C. A licensed retailer shall be responsible for any compensation and other associated costs payable to employees for participation in Lottery training courses and instruction.

D. A retailer shall provide all employees operating Lottery equipment with copies of the procedures manual, bulletins, and technical materials furnished to the retailer by the Lottery or its contractors.

E. A retailer holding a charitable organization license or instant tab license shall ensure all employees or volunteers selling instant tab tickets are properly trained.

History

• Adopted effective August 17, 1981 (Supp. 81-4). Amended subsection (B) as an emergency effective January 13, 1982, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 82-1). Subsection (B), amended as an emergency, now adopted as permanent with further amendment effective April 21, 1982 (Supp. 82-2). Amended subsection (A)(1), (3) and (4) as an emergency effective November 24, 1982, pursuant to A.R.S. § 41-1003, valid for only 90 days. Former emergency amendment effective November 24, 1982 now adopted as permanent effective December 28, 1982 (Supp. 82-6). Amended as an emergency effective June 10, 1983 pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 83-3). Former Section R4-37-206 adopted as an emergency effective June 10, 1983, now adopted and amended as a permanent rule effective September 14, 1983 (Supp. 83-5). Amended subsection (A)(4) effective September 26, 1986 (Supp. 86-5). Amended effective September 12, 1989 (Supp. 89-3). R19-3-206 recodified from R4-37-206 (Supp. 95-1). R19-3-206 renumbered to R19-3-205 ; new Section R19-3-206 renumbered from R19-3-207 and amended effective October 9, 1998 (Supp. 98-4). Amended by final rulemaking at 10 A.A.R. 3073, effective September 11, 2004 (Supp. 04-3). Amended by final rulemaking at 13 A.A.R. 2639, effective September 8, 2007 (Supp. 07-3). Amended by final rulemaking at 16 A.A.R. 2388, effective November 16, 2010 (Supp. 10-4). Amended by final rulemaking at 18 A.A.R. 1471, effective August 7, 2012 (Supp. 12-2). Amended by final rulemaking at 28 A.A.R. 439, effective 4/5/2022.

Ariz. Admin. Code § R19-3-207 Compliance Investigations

A. A retailer shall comply with all provisions of the Act and this Chapter. The Lottery may conduct inspections to verify compliance and, if necessary, order an audit or investigation of the business.

B. A retailer shall allow investigations by authorized Lottery investigators during the retailer's regular business hours to determine whether the retailer is complying with the provisions of the Act and this Chapter.

C. A retailer shall keep all documentation relating to the purchase, sale, and validation of Lottery products that are kept in the normal course of business for tax purposes for three years. This documentation shall be easily accessible to the Lottery-authorized investigator for examination or audit.

History

• Adopted as an emergency effective June 10, 1983 pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 83-3). Former Section R4-37-207 adopted as an emergency effective June 10, 1983, now adopted and amended as a permanent rule effective September 14, 1983 (Supp. 83-5). Amended subsections (B) and (J) effective September 26, 1986 (Supp. 86-5). Amended effective September 12, 1989 (Supp. 89-3). R19-3-207 recodified from R4-37-207 (Supp. 95-1). R19-3-207 renumbered to R19-3-206 ; new Section R19-3-207 adopted effective October 9, 1998 (Supp. 98-4). Amended by final rulemaking at 10 A.A.R. 3073, effective September 11, 2004 (Supp. 04-3). Amended by final rulemaking at 13 A.A.R. 2639, effective September 8, 2007 (Supp. 07-3). Amended by final rulemaking at 18 A.A.R. 1471, effective August 7, 2012 (Supp. 12-2).

Ariz. Admin. Code § R19-3-208 Penalties

A. The Director shall assess a civil penalty against a retailer for any of the following acts:

1. Offering to sell or selling a Lottery ticket to any person who is under 21 years of age, or

2. Selling a Lottery ticket in any transaction to a person using a public assistance voucher issued by any public entity or an electronic benefits transfer card issued by the Arizona Department of Economic Security.

B. The Director shall, on the written complaint of any person, or upon receipt of information indicating a retailer has committed an act listed in subsection (A), investigate the act or acts. The Director shall give notice to the retailer as provided in A.R.S. §§ 41-1092.03 and 41-1092.04 of imposition of a civil penalty if the Director finds the retailer has committed such an act. A violation of an act listed in subsection (A) is a civil penalty in the amount of:

1. Up to $300 for the first violation within a 12-month period;

2. More than $300 and up to $500 for the second violation within a 12-month period; and

3. More than $500 and up to $1,000 for the third violation within a 12-month period.

C. A retailer against whom a penalty is assessed shall pay the penalty to the Lottery by the 31st day after the retailer receives notice of imposition of the civil penalty, if the retailer does not request a hearing as provided in subsection (D).

D. A retailer may request a hearing regarding imposition of a civil penalty. The procedures and requirements set forth in A.R.S. Title 41, Chapter 6, Article 10 apply to hearings under this subsection.

E. A decision of the Director accepting, modifying or rejecting the recommended decision of the Administrative Law Judge is a final administrative decision subject to judicial review under A.R.S. Title 12, Chapter 7, Article 6.

1. If the retailer decides not to seek judicial review of the Director's final administrative decision, the retailer shall pay the civil penalty to the Lottery by the 36th day after the retailer receives the Director's decision.

2. If the retailer decides to seek judicial review of the Director's final administrative decision, the retailer shall pay the civil penalty to the Lottery by the 36th day after the date of the Superior Court's decision.

3. If the retailer decides to appeal the Superior Court's decision, the retailer shall pay the civil penalty to the Lottery by the 36th day after the date of the decision on appeal.

4. A retailer shall pay interest at the rate provided in A.R.S. § 44-1201 from the date final judgment assessing a civil penalty is entered until satisfaction of the judgment.

History

• New Section made by final rulemaking at 7 A.A.R. 3043, effective June 19, 2001 (Supp. 01-2). Amended by final rulemaking at 10 A.A.R. 3073, effective September 11, 2004 (Supp. 04-3). Amended by final rulemaking at 13 A.A.R. 2639, effective September 8, 2007 (Supp. 07-3). Amended by final rulemaking at 18 A.A.R. 1471, effective August 7, 2012 (Supp. 12-2).

Ariz. Admin. Code § R19-3-209 Notice and Service

A. Service of process shall be deemed made by the Lottery for any notice, decision, order, subpoena, or other process when the document or a copy is delivered to the retailer, premise manager, guarantor, or the attorney of record, or is deposited as certified mail in the United States Postal Service, addressed to the retailer or guarantor at the address listed on the application for license or as reported as a change event under R19-3-210.

B. All other notices shall be made as stated in R19-3-204(C)

History

• New Section made by final rulemaking at 10 A.A.R. 3073, effective September 11, 2004 (Supp. 04-3). Amended by final rulemaking at 13 A.A.R. 2639, effective September 8, 2007 (Supp. 07-3). Amended by final rulemaking at 16 A.A.R. 2388, effective November 16, 2010 (Supp. 10-4). Amended by final rulemaking at 18 A.A.R. 1471, effective August 7, 2012 (Supp. 12-2). Amended by final rulemaking at 28 A.A.R. 439, effective 4/5/2022.

Ariz. Admin. Code § R19-3-210 Reportable Events

A. A retailer shall report the following events to the Lottery in writing a minimum of 10 business days before the event:

1. Change in business location of the licensed premise;

2. Sale of ownership, merger, or acquisition of the licensed entity;

Addition, removal, or change of address, email address, or primary phone number of the following persons:

a. A partner in a partnership or a limited liability partnership;

b. A member or manager in a limited liability company;

c. An officer holding the position or functional equivalent of president, secretary, or treasurer of a corporation; or

d. A controlling agent, local premise manager, or designated corporate contact representative.

4. A charge of felony, felony theft that is designated as a misdemeanor, misdemeanor theft, embezzlement, or a crime involving gambling or fraudulent schemes and artifices that is brought against any person listed in subsection (3);

5. Divorce or legal separation action filed by a sole proprietor or partner licensed as a retailer, or retailer's spouse;

6 4. Retailer or guarantor becomes insolvent, files bankruptcy, or a receivership is ordered;

7 5. Change in bank account from which the Lottery's electronic funds transfers are made;

8. Revocation, suspension, or other action against a charitable organization's letter of determination of tax-exempt status; or

9. Change in the status of liquor license issued by the Arizona Department of Liquor Licenses and Control.

B. A retailer shall report the following events to the Lottery within 10 business days after the event occurs.

1. The death of a sole proprietor or partner licensed as a retailer;

2. A charge of felony, felony theft that is designated as a misdemeanor, misdemeanor theft, embezzlement, or a crime involving gambling or fraudulent schemes and artifices that is brought against any person listed in R19-3-210(A)(3) ;

3. Divorce or legal separation action filed by a sole proprietor or partner licensed as a retailer, or retailer's spouse;

4. Revocation, suspension, or other action against a charitable organization's letter of determination of tax-exempt status; or

5. Change in the status of liquor license issued by the Arizona Department of Liquor Licenses and Control.

History

• New Section made by final rulemaking at 13 A.A.R. 2639, effective September 8, 2007 (Supp. 07-3). Amended by final rulemaking at 16 A.A.R. 2388, effective November 16, 2010 (Supp. 10-4). Amended by final rulemaking at 18 A.A.R. 1471, effective August 7, 2012 (Supp. 12-2). Amended by final rulemaking at 22 A.A.R. 1379, effective 7/8/2016. Amended by final rulemaking at 28 A.A.R. 439, effective 4/5/2022.

Ariz. Admin. Code § R19-3-211 Change of Ownership or Business Location

A license is not assignable or transferable. A license authorizes the entity described in the application to sell Lottery tickets only at the specific premise authorized by the Lottery.

1. If there is a change of business location or ownership as reportable in R19-3-210(A)(1) through (3) or R19-3-210(B), a criminal charge as reportable in R19-3-210(B)(2), or a change in liquor license status as reportable in R19-3-210(B)(5), the retailer shall:

a. Surrender the license to the Director on the date of the event,

b. Not sell any additional Lottery tickets, and

c. Not allow the sale of Lottery products under a subcontract to avoid the repercussions of a change of status under this section.

2. The retailer must notify the Lottery of a change in ownership or business location at least 10 business days before the change to receive appropriate credit for applicable inventory.

3. The new owner shall apply for a license according to R19-3-202.

History

• New Section made by final rulemaking at 13 A.A.R. 2639, effective September 8, 2007 (Supp. 07-3). Amended by final rulemaking at 18 A.A.R. 1471, effective August 7, 2012 (Supp. 12-2). Amended by final rulemaking at 22 A.A.R. 1379, effective 7/8/2016. Amended by final rulemaking at 28 A.A.R. 439, effective 4/5/2022.

Ariz. Admin. Code § R19-3-212 Retailer Compensation

A. Retailer compensation shall be set within the statutory limits by a retailer compensation profile ordered by the Lottery Commission. Each retail compensation profile shall contain the following information:

1. Retailer compensation profile number;

2. Specific type of retailer compensation: commission, bonus, or other incentive;

3. The retailer group to which the retailer commission, bonus, or other incentive applies;

4. Criteria required to qualify for the commission, bonus, or other incentive;

5. Duration of the retailer commission, bonus, or other incentive;

Targeted games, if any; and

Special features, if any.

B. The category of retailer commissions, bonuses, or other incentives shall be one or more of the following:

1. General product license basic commission rate,

2. Limited license basic commission rate,

3. Sales benchmark rate,

4. Game product rate,

5. Promotional incentive or bonus rate,

6. Temporary incentive or bonus rate, or

7. Alternate incentive or bonus rate.

C. More than one retailer commission, bonus, or other incentive may run concurrently.

D. Promotion bonuses or incentives may be held during a designated period, specific days of the week, specific hours of the day, or a combination thereof.

E. The Commission shall approve and the Director shall distribute a schedule of available retailer compensation to licensed retailers at least 30 days prior to its effective date and shall post it on the Lottery web site. A technological problem or failure that either prevents the posting of the retailer commission, bonus, or other incentive on the Lottery web site or that temporarily or permanently prevents the use of all or part of the web site does not preclude the authorization of the retailer compensation.

History

• New Section made by final rulemaking at 13 A.A.R. 2639, effective September 8, 2007 (Supp. 07-3). Amended by final rulemaking at 16 A.A.R. 2388, effective November 16, 2010 (Supp. 10-4). Amended by final rulemaking at 18 A.A.R. 1471, effective August 7, 2012 (Supp. 12-2). Amended by final rulemaking at 28 A.A.R. 439, effective 4/5/2022.

Ariz. Admin. Code § R19-3-213 Ticket Sales to Players

A. A retailer shall sell only the type of Lottery products authorized by its Lottery-issued license and any approved license endorsements.

B. The Director may require a retailer to sell any one or combination of Lottery game products based on the retailer's license.

C. A retailer shall not make any representation to a player regarding a likelihood to win, a guaranteed return on a percentage of purchases, or better chances or odds of winning.

D. Draw Game tickets.

1. All draw Game ticket sales are final. If a retailer accepts a returned draw game ticket from a player or generates an draw Game ticket refused by the player and the retailer does not resell the ticket, the Lottery shall deem the draw Game ticket to be owned by the retailer.

2. A retailer shall not devote more than 15 consecutive minutes of sales to draw game purchase by any single player if other customers are waiting to make a purchase.

3. A retailer shall only use selection slips, materials, or methods authorized by the Lottery to generate plays selected by the player.

E. Instant scratch tickets.

1. All instant scratch ticket sales are final.

2. A retailer shall sell instant scratch tickets within each pack in sequential order.

3. A retailer shall not sell an instant scratch ticket after the announced end of game.

F. All instant tab ticket sales are final.

G. Keno

1. All keno game ticket sales are final.

2. A retailer selling Keno games shall only use selection slips, materials, equipment, or methods authorized by the Lottery to generate plays selected by the player.

History

• New Section made by final rulemaking at 13 A.A.R. 2639, effective September 8, 2007 (Supp. 07-3). Amended by final rulemaking at 16 A.A.R. 2388, effective November 16, 2010 (Supp. 10-4). Amended by final rulemaking at 18 A.A.R. 1471, effective August 7, 2012 (Supp. 12-2). Amended by final rulemaking at 28 A.A.R. 439, effective 4/5/2022.

Ariz. Admin. Code § R19-3-214 Payments to Lottery

A. Money collected from the sale of Lottery tickets by retailers are trust monies required to be collected for the benefit of the state and shall be paid to the Lottery according to subsections (B) and (C).

B. Except for instant tab tickets, a retailer shall pay for ticket sales in the following manner:

1. Pay to the Lottery weekly, the amount due from the sale of its Lottery tickets for the period one week previous, or as otherwise agreed upon in writing.

2. Unless otherwise agreed upon according to (D) of this section, the amount due for Draw Game tickets means the retailer's gross Draw Game sales revenue, minus any promotional tickets, prize winnings paid out by the retailer, the retailer's sales commission, and plus or minus any accounting or prize adjustments.

3. Unless otherwise agreed upon according to (D) of this section, the amount due for instant scratch tickets is based on billing for instant ticket packs issued to a retailer with billing occurring 45 days after a pack is activated, or after 85% of winning tickets in the pack are validated, whichever occurs first, minus any promotional tickets, returned tickets, prize winnings paid out by the retailer, the retailer's sales commission, and plus or minus any accounting or prize adjustments. Corporate account retailers may elect to settle in 21 days with no associated validation percentage.

4. The retailer shall deposit funds in a timely manner into a bank account from which the electronic funds transfer will be made to the Lottery.

a. The retailer shall provide the Lottery with an electronic funds transfer authorization showing a valid bank account number from which the amounts due to the Lottery will be transferred, and

b. The retailer shall notify the Lottery of any bank account changes a minimum of 10 business days before the effective date of the change.

If the electronic funds transfer is returned to the Lottery for any reason, the retailer shall immediately make arrangements to become current on the amount owed. Additionally, if the retailer's payment is returned to the Lottery:

a. The Director may require that the retailer's Lottery-issued equipment be disabled;

b. The Director may revoke, suspend, or deny renewal of the retailer's license according to R19-3-204 ;

c. The Director may require payment for instant scratch tickets upon activating the pack for sale;

d. The Director may require the return of the retailer's current inventory of instant scratch tickets and suspend further delivery of instant scratch tickets; and

e. The Director may charge a processing fee.

C. A retailer selling instant tab tickets shall pay the Lottery's authorized representative for instant tab tickets.

D. The Lottery may agree in writing to an alternative payment arrangement if such arrangement is in the best interest of the Lottery.

D E. If the retailer owes money to the Lottery, the Lottery may offset that debt with any monies that are owed to the retailer by the Lottery.

History

• New Section made by final rulemaking at 13 A.A.R. 2639, effective September 8, 2007 (Supp. 07-3). Amended by final rulemaking at 16 A.A.R. 2388, effective November 16, 2010 (Supp. 10-4). Amended by final rulemaking at 18 A.A.R. 1471, effective August 7, 2012 (Supp. 12-2). Amended by final rulemaking at 22 A.A.R. 1379, effective 7/8/2016. Amended by final rulemaking at 28 A.A.R. 439, effective 4/5/2022.

Ariz. Admin. Code § R19-3-215 Prize Validation and Payment

A. Licensed General Products Retailer

1. A licensed retailer shall provide prize validation and payment services for instant scratch tickets or on-line tickets to any Lottery claimant regardless of where the ticket was purchased to be eligible for the highest sales commission compensation rate.

B. 2. A licensed retailer shall pay all winning prizes for instant scratch tickets or draw Game tickets up to and including $100, and may pay all winning prizes from $101 up to and including $599.

1.a. A winning instant scratch ticket shall satisfy the validation criteria in R19-3-705 and R19-3-706 and have a proper validation receipt issued by the Lottery-authorized equipment.

2.b. A winning on-line ticket shall satisfy the validation criteria in R19-3-406 and R19-3-407 and have a proper validation receipt issued by the Lottery-authorized equipment.

c. Tickets that are damaged, torn in half, or have questionable information shall be referred to an official Lottery office.

B. Licensed Redemption Agent Endorsement

1. To be eligible for the highest sales commission compensation rate, a licensed retailers with a Redemption Agent endorsement shall provide prize validation and payment services for all Lottery products, to any Lottery claimant, regardless of where the ticket was purchased.

2. A licensed retailer with a Redemption Agent endorsement shall pay winning prizes for instant scratch tickets or draw game tickets up to and including $4,999.

a. A winning instant scratch ticket shall satisfy the validation criteria in R19-3-705 and R19-3-706 and have a proper validation receipt issued by the Lottery-authorized equipment.

b. A winning draw game ticket shall satisfy the validation criteria in R19-3-406 and R19-3-407 and have a proper validation receipt issued by the Lottery-authorized equipment.

c. For prizes over $600, a licensed retailer with a Redemption Agent endorsement shall determine, through the Lottery provided equipment, and prior to paying the prize, whether the holder of a winning lottery ticket is subject to Arizona debt setoff requirements under A.R.S. § 5-575.

3. A licensed retailer with a Redemption Agent endorsement shall be responsible for verification of identity and social security number and shall require prizewinners to provide acceptable identification and documentation.

a. Prizewinners who cannot provide a licensed retailer with a Redemption Agent endorsement the documentation as required shall be referred to Lottery for prize payment.

b. Tickets that are damaged, torn in half, or have questionable information shall be referred to an official Lottery office.

C. A retailer selling instant tab tickets shall pay all winning prizes for tickets sold at its location.

1. A winning instant tab ticket shall satisfy the validation criteria in R19-3-705(A) and (B)(1) through (8), and contain the necessary play, prize, and win symbol captions that enable visual confirmation of a prize.

2. Prizes shall not be paid by the Lottery or by another retailer.

D. Prizes paid by any retailer or licensed retailer with a Redemption Agent endorsement shall be paid by cash, check, money order, prepaid debit card, or if requested by the player, by Lottery tickets.

1. If a retailer pays a prize with a money order, any associated fees will be paid by the retailer.

2. If a retailer pays a prize with a prepaid debit card, the retailer will be responsible for providing any customer service associated with faulty or lost cards.

History

• New Section made by final rulemaking at 13 A.A.R. 2639, effective September 8, 2007 (Supp. 07-3). Amended by final rulemaking at 16 A.A.R. 2388, effective November 16, 2010 (Supp. 10-4). Amended by final rulemaking at 18 A.A.R. 1471, effective August 7, 2012 (Supp. 12-2). Amended by final rulemaking at 28 A.A.R. 439, effective 4/5/2022.

Ariz. Admin. Code § R19-3-216 Distribution and Return of Instant Tickets

A. The Lottery or its authorized representative shall distribute instant scratch tickets and accept returned instant scratch tickets as follows:

Distribute to each retailer holding a general product license the quantity of tickets on which the Lottery and the retailer agree, based on the retailer's anticipated sales volume.

Collect full and partial packs of tickets during a game if the Lottery and the retailer holding a general product license determine the retailer's sales for a specific game are minimal.

Collect full and partial packs of tickets when a game is ended. The Lottery shall announce the ending date of a game and communicate this information to all retailers holding a general product license in a timely manner.

4. Credit to a retailer holding a general product license in the billing period following the receipt of the Lottery-authorized returned tickets, the net dollar value of any unopened full packs and any partial packs of tickets, subject to R19-3-211(A)(2).

B. The Lottery or its authorized representative shall distribute instant tab tickets to retailers licensed to sell instant tab tickets as follows:

Retailers shall order instant tab tickets only from authorized Lottery vendors.

2. Instant tab tickets shall become the property of the retailer.

3. Lottery shall not accept returns of instant tab tickets or reimburse for any unsold tickets.

History

• New Section made by final rulemaking at 13 A.A.R. 2639, effective September 8, 2007 (Supp. 07-3). Amended by final rulemaking at 16 A.A.R. 2388, effective November 16, 2010 (Supp. 10-4). Amended by final rulemaking at 18 A.A.R. 1471, effective August 7, 2012 (Supp. 12-2). Amended by final rulemaking at 28 A.A.R. 439, effective 4/5/2022.

Ariz. Admin. Code § R19-3-217 Unaccounted for and Stolen Instant Scratch Tickets

A. All Lottery tickets issued to a retailer holding a full product license or limited license shall be the property of the retailer until their return is acknowledged by the Lottery. The Lottery is not responsible for lost or stolen tickets.

B. A licensed retailer authorized to sell instant scratch tickets may be eligible for reimbursement of all or some stolen inventory if:

1. The retailer report s the stolen Lottery tickets to the local law enforcement agency and the Lottery Investigations unit within one hour from the time the theft occurs or the theft first could have been discovered;

1 2. The retailer provides a copy of the written police report to the Lottery;

2 3. The retailer cooperates in any investigation and prosecution of the theft;

3. Sign an affidavit providing the details as known by the retailer, and

4. The retailer provides accurate game, pack, and ticket information for the stolen inventory;

5. The retailer provides documentation a claim for the stolen inventory has been made to the retailer's insurance company and the claim was denied or if the retailer is self-insured, documentation of self-insurance; and

6. The stolen inventory had not been validated at the time it was reported stolen.

C. If a retailer holding a full product license or limited license sustains a loss from stolen tickets, the retailer's insurance is the loss payee.

D C. If a retailer licensed to sell instant scratch tickets has insufficient insurance to pay for the retailer's loss and the retailer complies with subsection (B), the Lottery may credit the retailer's account for stolen instant tickets as follows:

1. The Lottery may credit all charges against the account of the retailer for the stolen tickets if the Lottery determines the theft was from a source not associated with the retailer or by an unknown party.

2. The Lottery may credit 50% of the charges against the account of the retailer for the stolen tickets if the Lottery determines the theft was from an employee, manager, officer, director, or a relative with access to Lottery tickets.

3. Each retailer is limited to no more than two stolen ticket credit requests within any 12-month period.

E D. The Lottery shall not issue a credit for stolen tickets if the Lottery finds a retailer holding a full product license or limited license was negligent or did not enforce reasonable loss-prevention procedures to protect tickets, ticket processing, and ticket accounting.

F E. If a prize claim is made against a ticket that has been reported as stolen or a ticket unaccounted for by the retailer holding a full product license or limited license, the Lottery shall hold the prize money in trust pending the findings of an investigation by an appropriate law enforcement agency.

G F. The loss of instant tab tickets is the responsibility of the retailer.

History

• New Section made by final rulemaking at 13 A.A.R. 2639, effective September 8, 2007 (Supp. 07-3). Amended by final rulemaking at 16 A.A.R. 2388, effective November 16, 2010 (Supp. 10-4). Amended by final rulemaking at 18 A.A.R. 1471, effective August 7, 2012 (Supp. 12-2). Amended by final rulemaking at 22 A.A.R. 1379, effective 7/8/2016. Amended by final rulemaking at 28 A.A.R. 439, effective 4/5/2022.

Article 3 REPEALED

Ariz. Admin. Code § R19-3-301 [REPEALED]

History

• Adopted as an emergency effective May 26, 1981, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 81-3). New Section R4-37-301 adopted effective August 17, 1981 (Supp. 81-4). Former Section R4-37-301 repealed, new Section R4-37-301 adopted effective March 6, 1986 (Supp. 86-2). Amended subsections (F) and (I) effective September 26, 1986 (Supp. 86-5). Amended effective September 12, 1989 (Supp. 89-3). Emergency amendment adopted effective April 20, 1993, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 93-2). Emergency amendments permanently adopted with changes effective July 20, 1993 (Supp. 93-3). R19-3-301 recodified from R4-37-301 (Supp. 95-1). Repealed effective October 25, 1996 (Supp. 96-4).

Ariz. Admin. Code § R19-3-302 [REPEALED]

History

• Adopted as an emergency effective May 26, 1981, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 81-3). New Section R4-37-302 adopted as an emergency effective August 13, 1981, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 81-4). Former Section R4-37-302 adopted R4-37-302 adopted as an emergency now adopted as a permanent rule effective October 15, 1981 (Supp. 81-5). Former Section R4-37-302 repealed, new Section R4-37-302 adopted effective March 6, 1986 (Supp. 86-2). Repealed effective September 12, 1989 (Supp. 89-3). New Section adopted effective February 28, 1992 (Supp. 92-1). Repealed effective November 28, 1994 (Supp. 94-4). R-19-3-302 recodified from R4-37-302. Adopted effective September 13, 1995 (Supp. 95-3). Section repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code § R19-3-303 [REPEALED]

History

• Adopted as an emergency effective October 14, 1981, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 81-5). Former Section R4-37-303 adopted as an emergency now adopted as a permanent rule effective December 17, 1981 (Supp. 81-6). Repealed effective March 6, 1986 (Supp. 86-2). New Section R4-37-303 adopted effective May 2, 1986 (Supp. 86-2). Repealed effective September 12, 1989 (Supp. 89-3). New Section adopted effective February 28, 1992 (Supp. 92-1). Repealed effective November 28, 1994 (Supp. 94-4). R19-3-303 recodified from R4-37-303. (Supp. 95-1). Adopted effective September 13, 1995 (Supp. 95-3). Section repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code § R19-3-304 [REPEALED]

History

• Adopted as an emergency effective January 13, 1982, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 82-1). Former Section R4-37-304 adopted as an emergency now adopted as a permanent rule effective February 16, 1982 (Supp. 82-1). Repealed effective March 6, 1986 (Supp. 86-2). New Section R4-37-304 adopted effective June 30, 1986 (Supp. 86-3). Repealed effective September 12, 1989 (Supp. 89-3). New Section adopted effective March 28, 1992 (Supp. 92-1). Repealed effective November 28, 1994 (Supp. 94-4). R19-3-304 recodified from R4-37-304 (Supp. 95-1). Adopted effective September 13, 1995 (Supp. 95-3). Section repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code § R19-3-305 [REPEALED]

History

• Adopted as an emergency effective May 21, 1982, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 82-3). Former Section R4-37-305 adopted as an emergency now adopted as a permanent rule effective August 19, 1982 (Supp. 82-4). Repealed effective March 6, 1986 (Supp. 86-2). New Section R4-37-305 adopted effective August 28, 1986 (Supp. 86-4) Repealed effective September 12, 1989 (Supp. 89-3). Former R4-37-323 adopted and renumbered as R4-37-305 effective November 1, 1989 (Supp. 89-4). Repealed effective November 28, 1994 (Supp. 94-4). R19-3-305 recodified from R4-37-305 (Supp. 95-1). New Section R19-3-305 adopted effective November 3, 1995 (Supp. 95-4). Section, including Illustration A, B and C, repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code § R19-3-306 [REPEALED]

History

• Adopted as an emergency effective July 15, 1982, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 82-4). Former Section R4-37-306 adopted as an emergency now adopted as a permanent rule effective October 20, 1982 (Supp. 82-5). Repealed effective March 6, 1986 (Supp. 86-2). New Section R4-37-306 adopted as an emergency effective November 14, 1986, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 86-6). Adopted without change as a permanent rule effective February 12, 1987 (Supp. 87-1). Repealed effective September 12, 1989 (Supp. 89-3). New Section adopted effective January 5, 1990 (Supp. 90-1). Repealed effective November 28, 1994 (Supp. 94-4). R19-3-306 recodified from R4-37-306. (Supp. 95-1). New Section adopted effective December 6, 1995 (Supp. 95-4). Section repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code § R19-3-307 [REPEALED]

History

• Adopted as an emergency effective September 24, 1982, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 82-5). Readopted without change as an emergency effective December 20, 1982, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 82-5). Former Section R4-37-307 adopted as an emergency now adopted as a permanent rule without change effective March 23, 1983 (Supp. 83-2). Repealed effective March 6, 1986 (Supp. 86-2). New Section R4-37-307 adopted effective January 6, 1987 Supp. 87-1). Repealed effective September 12, 1989 (Supp. 89-3). New Section adopted effective March 7, 1990 (Supp. 90-1). Repealed effective November 28, 1994 (Supp. 94-4). R19-3-307 recodified from R4-37-307. (Supp. 95-1). New Section adopted effective December 6, 1995 (Supp. 95-4). Section repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code § R19-3-308 [REPEALED]

History

• Adopted as an emergency effective December 28, 1982, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 82-6). Former Section R4-37-308 adopted as an emergency now adopted as a permanent rule without change effective March 23, 1983 (Supp. 83-2). Repealed effective March 6, 1986 (Supp. 86-2). New Section R4-37-308 adopted effective March 5, 1987 (Supp. 87-2). Repealed effective September 12, 1989 (Supp. 89-3). New Section adopted effective April 10, 1990 (Supp. 90-2). Repealed effective November 28, 1994 (Supp. 94-4). R19-3-308 recodified from R4-37-308 (Supp. 95-1). New Section adopted effective December 6, 1995 (Supp. 95-4). Section repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code § R19-3-309 [REPEALED]

History

• Adopted as an emergency effective February 18, 1983, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 82-6). Former Section R4-37-309 adopted as an emergency now adopted as a permanent rule with amendments in subsection (F)(1) and (4) effective April 13, 1983 (Supp. 83-2). Repealed effective March 6, 1986 (Supp. 86-2). New Section R4-37-309 adopted effective April 8, 1987 (Supp. 87-2). Repealed effective September 12, 1989 (Supp. 89-3). New Section adopted effective June 25, 1990 (Supp. 90-2). Repealed effective November 28, 1994 (Supp. 94-4). R19-3-309 recodified from R4-37-309 (Supp. 95-1). New Section adopted effective January 30, 1996 (Supp. 96-1). Section repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code § R19-3-310 [REPEALED]

History

• Adopted as an emergency effective May 18, 1983, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 83-3). Former Section R4-37-310 adopted as an emergency now adopted as a permanent rule without change effective August 17, 1983 (Supp. 83-4). Repealed effective March 6, 1986 (Supp. 86-2). New Section R4-37-310 adopted effective June 26, 1987 (Supp. 87-3). Repealed effective September 12, 1989 (Supp. 89-3). New Section R4-37-310 adopted effective August 2, 1990 (Supp. 90-3). Repealed effective November 28, 1994 (Supp. 94-4). R19-3-310 recodified from R4-37-310 (Supp. 95-1). New Section adopted effective March 6, 1996 (Supp. 96-1). Section repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code § R19-3-311 [REPEALED]

History

• Adopted as an emergency effective July 1, 1983, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 83-4). Former Section R4-37-301 adopted as an emergency now adopted as a permanent rule without change effective September 29, 1983 (Supp. 83-5). Repealed effective March 6, 1986 (Supp. 86-2). New Section R4-37-311 adopted effective September 10, 1987 (Supp. 87-3). Repealed effective September 12, 1989 (Supp. 89-3). New Section R4-37-311 adopted effective August 2, 1990 (Supp. 90-3). Labels for subsections (E) and (F) changed (Supp. 91-1). Repealed effective November 28, 1994 (Supp. 94-4). R19-3-311 recodified from R4-37-311 (Supp. 95-1). New Section adopted effective March 6, 1996 (Supp. 96-1). Section repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code § R19-3-312 [REPEALED]

History

• Adopted effective September 21, 1983 (Supp. 83-5). Repealed effective March 6, 1986 (Supp. 86-2). New Section R4-37-312 adopted effective November 12, 1987 (Supp. 87-4). Repealed effective September 12, 1989 (Supp. 89-3). New Section R4-37-312 adopted effective October 12, 1990 (Supp. 90-4). Repealed effective November 28, 1994 (Supp. 94-4). R19-3-312 recodified from R4-37-312 (Supp. 95-1). New Section adopted effective May 13, 1996 (Supp. 96-2). Section repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code § R19-3-313 [REPEALED]

History

• Adopted effective December 1, 1983 (Supp. 83-6). Repealed effective March 6, 1986 (Supp. 86-2). New Section R4-37-313 adopted effective January 7, 1988 (Supp. 88-1). Automatically repealed effective January 7, 1989 (Supp. 89-1). New Section R4-37-313 adopted effective November 6, 1990 (Supp. 90-4). Repealed effective November 28, 1994 (Supp. 94-4). R19-3-313 recodified from R4-37-313 (Supp. 95-1). New Section adopted effective May 13, 1996 (Supp. 96-2). Section repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code § R19-3-314 [REPEALED]

History

• Adopted effective January 6, 1984 (Supp. 84-1). Repealed effective March 6, 1986 (Supp. 86-2). New Section R4-37-314 adopted effective March 11, 1988 (Supp. 88-1). Automatically repealed effective March 11, 1989 (Supp. 89-1). New Section R4-37-314 adopted effective December 12, 1990 (Supp. 90-4). Repealed effective November 28, 1994 (Supp. 94-4). R19-3-314 recodified from R4-37-314 (Supp. 95-1). New Section adopted effective June 21, 1996 (Supp. 96-2). Section repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code § R19-3-315 [REPEALED]

History

• Adopted effective March 22, 1984 (Supp. 84-2). Repealed effective March 6, 1986 (Supp. 86-2). New Section R4-37-315 adopted effective May 5, 1988. Automatically repealed effective May 5, 1989 (Supp. 89-2). New Section R4-37-315 adopted effective January 21, 1991 (Supp. 91-1). Repealed effective November 28, 1994 (Supp. 94-4). R19-3-315 recodified from R4-37-315 (Supp. 95-1). New Section adopted effective June 21, 1996 (Supp. 96-2). Section repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code § R19-3-316 [REPEALED]

History

• Adopted effective May 31, 1984 (Supp. 84-3). Repealed effective March 6, 1986 (Supp. 86-2). New Section R4-37-316 adopted effective June 30, 1988 (Supp. 88-2). Amended by deleting subsection (C) effective June 12, 1989 (Supp. 89-2). Repealed effective November 28, 1994 (Supp. 94-4). R19-3-316 recodified from R4-37-316 (Supp. 95-1). New Section adopted effective June 21, 1996 (Supp. 96-2). Section repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code § R19-3-317 [REPEALED]

History

• Adopted effective July 12, 1984 (Supp. 84-4). Repealed effective September 12, 1989 (Supp. 89-3). New Section R4-37-317 adopted effective January 21, 1991 (Supp. 91-1). Repealed effective November 28, 1994 (Supp. 94-4). R19-3-317 recodified from R4-37-317 (Supp. 95-1). New Section adopted effective June 21, 1996 (Supp. 96-2). Section repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code § R19-3-318 [REPEALED]

History

• Adopted effective July 26, 1984 (Supp. 84-4). Repealed effective March 6, 1986 (Supp. 86-2). New Section R4-37-318 adopted effective August 10, 1988 (Supp. 88-3). Repealed effective November 28, 1994 (Supp. 94-4). R19-3-318 recodified from R4-37-318 (Supp. 95-1). New Section adopted effective July 19, 1996 (Supp. 96-3). Section repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code § R19-3-319 [REPEALED]

History

• Adopted effective September 14, 1984 (Supp. 84-5). Repealed effective March 6, 1986 (Supp. 86-2). New Section R4-37-319 adopted effective November 9, 1988 (Supp. 88-4). Section expired November 9, 1989 (Supp. 90-1). R19-3-319 recodified from R4-37-319 (Supp. 95-1). New Section adopted effective July 19, 1996 (Supp. 96-3). Section repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code § R19-3-320 [REPEALED]

History

• Adopted effective November 15, 1984 (Supp. 84-6). Repealed effective March 6, 1986 (Supp. 86-2). New Section R4-37-320 adopted effective January 6, 1989 (Supp. 89-1). Section expired effective January 6, 1990 (Supp. 90-1). R19-3-320 recodified from R4-37-320 (Supp. 95-1). New Section adopted effective July 19, 1996 (Supp. 96-3). Section repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code § R19-3-321 [REPEALED]

History

• Adopted effective November 15, 1984 (Supp. 84-6). Repealed effective March 6, 1986 (Supp. 86-2). New Section R4-37-321 adopted effective March 10, 1989 (Supp. 89-1). Section expired effective March 10, 1990 (Supp. 90-1). R19-3-321 recodified from R4-37-321 (Supp. 95-1). New Section adopted effective July 19, 1996 (Supp. 96-3). Section repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code § R19-3-322 [REPEALED]

History

• Adopted effective March 7, 1985 (Supp. 85-2). Repealed effective March 6, 1986 (Supp. 86-2). New Section R4-37-222 adopted effective May 3, 1989 (Supp. 89-2). Repealed effective November 28, 1994 (Supp. 94-4). R19-3-222 recodified from R4-37-222 (Supp. 95-1). New Section adopted effective August 27, 1996 (Supp. 96-3). Section repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code § R19-3-323 [REPEALED]

History

• Adopted effective May 1, 1985 (Supp. 85-3). Repealed effective March 6, 1986 (Supp. 86-2). New Section R4-37-323 adopted and renumbered as R4-37-305 effected November 1, 1989 (Supp. 89-4). New Section R4-37-323 adopted effective March 25, 1991 (Supp. 91-1). Repealed effective November 28, 1994 (Supp. 94-4). R19-3-323 recodified from R4-37-323 (Supp. 95-1). New Section adopted effective October 2, 1996 (Supp. 96-4). Section repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code § R19-3-324 [REPEALED]

History

• Adopted effective June 12, 1985 (Supp. 85-3). Repealed effective May 2, 1986 (Supp. 86-3). New Section adopted effective May 2, 1991 (Supp. 91-2). Repealed effective November 28, 1994 (Supp. 94-4). R19-3-324 recodified from R4-37-324 (Supp. 95-1). New Section adopted effective October 2, 1996 (Supp. 96-4). Section repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code § R19-3-325 [REPEALED]

History

• Adopted effective September 4, 1985 (Supp. 85-5). Repealed effective August 28, 1986 (Supp. 86-4). New Section adopted effective July 3, 1991 (Supp. 91-3). Repealed effective November 28, 1994 (Supp. 94-4). R19-3-325 recodified from R4-37-325 (Supp. 95-1). New Section adopted October 2, 1996 (Supp. 96-4). Section repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code § R19-3-326 [REPEALED]

History

• Adopted effective October 28, 1985 (Supp. 85-5). Repealed effective January 6, 1987 (Supp. 87-1). Adopted effective July 3, 1991 (Supp. 91-3). New Section adopted effective July 3, 1991 (Supp. 91-3). Repealed effective November 28, 1994 (Supp. 94-4). R19-3-326 recodified from R4-37-326 (Supp. 95-1). New Section adopted effective October 25, 1996 (Supp. 96-4). Section repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code § R19-3-327 [REPEALED]

History

• Adopted effective January 9, 1986 (Supp. 86-1). Repealed effective January 6, 1987 (Supp. 87-1). New Section adopted effective July 3, 1991 (Supp. 91-3). Repealed effective November 28, 1994 (Supp. 94-4). R19-3-327 recodified from R4-37-327 (Supp. 95-1). New Section adopted effective October 24, 1996 (Supp. 96-4). Section repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code § R19-3-328 [REPEALED]

History

• Adopted effective October 28, 1985 (Supp. 85-5). Repealed effective January 6, 1987 (Supp. 87-1). Adopted effective July 3, 1991 (Supp. 91-3). New Section adopted effective September 3, 1991 (Supp. 91-3). Repealed effective November 28, 1994 (Supp. 94-4). R19-3-328 recodified from R4-37-328 (Supp. 95-1). New Section adopted effective October 24, 1996 (Supp. 96-4). Section repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code § R19-3-329 [REPEALED]

History

• Adopted effective January 9, 1986 (Supp. 86-1). Repealed effective January 6, 1987 (Supp. 87-1). New Section adopted effective September 3, 1991 (Supp. 91-3). Repealed effective November 28, 1994 (Supp. 94-4). R19-3-329 recodified from R4-37-329 (Supp. 95-1). New Section adopted November 22, 1996 (Supp. 96-4). Section, including Exhibit A, B and C, repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code § R19-3-330 [REPEALED]

History

• Adopted effective November 21, 1991 (Supp. 91-4). Repealed effective November 28, 1994 (Supp. 94-4). R19-3-330 recodified from R4-37-330 (Supp. 95-1).

Ariz. Admin. Code § R19-3-331 [REPEALED]

History

• Adopted effective December 20, 1991 (Supp. 91-4). Repealed effective November 28, 1994 (Supp. 94-4). R19-3-331 recodified from R4-37-331 (Supp. 95-1).

Ariz. Admin. Code § R19-3-332 [REPEALED]

History

• Adopted effective March 13, 1992 (Supp. 92-1). Repealed effective November 28, 1994 (Supp. 94-4). R19-3-332 recodified from R4-37-332 (Supp. 95-1).

Ariz. Admin. Code § R19-3-333 [REPEALED]

History

• Adopted effective July 10, 1992 (Supp. 92-3). Repealed effective November 28, 1994 (Supp. 94-4). R19-3-333 recodified from R4-37-333 (Supp. 95-1).

Ariz. Admin. Code § R19-3-334 [REPEALED]

History

• Adopted effective July 10, 1992 (Supp. 92-3). Repealed effective November 28, 1994 (Supp. 94-4). R19-3-334 recodified from R4-37-334 (Supp. 95-1).

Ariz. Admin. Code § R19-3-335 [REPEALED]

History

• Adopted effective July 10, 1992 (Supp. 92-3). Repealed effective November 28, 1994 (Supp. 94-4). R19-3-335 recodified from R4-37-335 (Supp. 95-1).

Ariz. Admin. Code § R19-3-336 [REPEALED]

History

• Adopted effective December 18, 1992 (Supp. 92-4). Repealed effective November 28, 1994 (Supp. 94-4). R19-3-336 recodified from R4-37-336 (Supp. 95-1).

Ariz. Admin. Code § R19-3-337 [REPEALED]

History

• Adopted effective December 18, 1992 (Supp. 92-4). Repealed effective November 28, 1994 (Supp. 94-4). R19-3-337 recodified from R4-37-337 (Supp. 95-1).

Ariz. Admin. Code § R19-3-338 [REPEALED]

History

• Adopted effective December 18, 1992 (Supp. 92-4). Repealed effective November 28, 1994 (Supp. 94-4). R19-3-338 recodified from R4-37-338 (Supp. 95-1).

Ariz. Admin. Code § R19-3-339 [REPEALED]

History

• Adopted effective December 23, 1992 (Supp. 92-4). Repealed effective November 28, 1994 (Supp. 94-4). R19-3-339 recodified from R4-37-339 (Supp. 95-1).

Ariz. Admin. Code § R19-3-340 [REPEALED]

History

• Adopted effective December 23, 1992 (Supp. 92-4). Repealed effective November 28, 1994 (Supp. 94-4). R19-3-340 recodified from R4-37-340 (Supp. 95-1).

Ariz. Admin. Code § R19-3-341 [REPEALED]

History

• Adopted effective December 23, 1992 (Supp. 92-4). Repealed effective November 28, 1994 (Supp. 94-4). R19-3-341 recodified from R4-37-341 (Supp. 95-1).

Ariz. Admin. Code § R19-3-342 [REPEALED]

History

• Adopted effective December 23, 1992 (Supp. 92-4). Repealed effective November 28, 1994 (Supp. 94-4). R19-3-342 recodified from R4-37-342 (Supp. 95-1).

Ariz. Admin. Code § R19-3-343 [REPEALED]

History

• Adopted effective February 3, 1993 (Supp. 93-1). Repealed effective November 28, 1994 (Supp. 94-4). R19-3-343 recodified from R4-37-343 (Supp. 95-1).

Ariz. Admin. Code § R19-3-344 [REPEALED]

History

• Adopted effective February 3, 1993 (Supp. 93-1). Repealed effective November 28, 1994 (Supp. 94-4). R19-3-344 recodified from R4-37-344 (Supp. 95-1).

Ariz. Admin. Code § R19-3-345 [REPEALED]

History

• Adopted effective March 4, 1993 (Supp. 93-1). R19-3-345 recodified from R4-37-345 (Supp. 95-1). Repealed effective April 18, 1997 (Supp. 97-2).

Ariz. Admin. Code § R19-3-346 [REPEALED]

History

• Adopted effective March 4, 1993 (Supp. 93-1). R19-3-346 recodified from R4-37-346 (Supp. 95-1). Repealed effective April 18, 1997 (Supp. 97-2)

Ariz. Admin. Code § R19-3-347 [REPEALED]

History

• Adopted effective March 4, 1993 (Supp. 93-1). R19-3-347 recodified from R4-37-347 (Supp. 95-1). Repealed effective April 18, 1997 (Supp. 97-2).

Ariz. Admin. Code § R19-3-348 [REPEALED]

History

• Adopted effective March 4, 1993 (Supp. 93-1). R19-3-348 recodified from R4-37-348 (Supp. 95-1). Repealed effective April 18, 1997 (Supp. 97-2).

Ariz. Admin. Code § R19-3-349 [REPEALED]

History

• Adopted effective April 20, 1993 (Supp. 93-2). R19-3-349 recodified from R4-37-349 (Supp. 95-1). Repealed effective April 18, 1997 (Supp. 97-2).

Ariz. Admin. Code § R19-3-350 [REPEALED]

History

• Reserved; Section repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code § R19-3-351 [REPEALED]

History

• Adopted effective July 30, 1993 (Supp. 93-3). R19-3-351 recodified from R4-37-351 (Supp. 95-1). Repealed effective April 18, 1997 (Supp. 97-2).

Ariz. Admin. Code § R19-3-352 [REPEALED]

History

• Adopted effective July 30, 1993 (Supp. 93-3). R19-3-352 recodified from R4-37-352 (Supp. 95-1). Repealed effective April 18, 1997 (Supp. 97-2).

Ariz. Admin. Code § R19-3-353 [REPEALED]

History

• Adopted effective July 30, 1993 (Supp. 93-3). R19-3-353 recodified from R4-37-353 (Supp. 95-1). Repealed effective April 18, 1997 (Supp. 97-2).

Ariz. Admin. Code § R19-3-354 [REPEALED]

History

• Adopted effective July 30, 1993 (Supp. 93-3). R19-3-354 recodified from R4-37-354 (Supp. 95-1). Repealed effective April 18, 1997 (Supp. 97-2).

Ariz. Admin. Code § R19-3-355 [REPEALED]

History

• Adopted effective October 1, 1993 (Supp. 93-4). R19-3-355 recodified from R4-37-355 (Supp. 95-1). Repealed effective April 18, 1997 (Supp. 97-2).

Ariz. Admin. Code § R19-3-356 [REPEALED]

History

• Adopted effective October 1, 1993 (Supp. 93-4). R19-3-356 recodified from R4-37-356 (Supp. 95-1). Repealed effective April 18, 1997 (Supp. 97-2).

Ariz. Admin. Code § R19-3-357 [REPEALED]

History

• Adopted effective December 2, 1993 (Supp. 93-4). R19-3-357 recodified from R4-37-357 (Supp. 95-1). Repealed effective April 18, 1997 (Supp. 97-2).

Ariz. Admin. Code § R19-3-358 [REPEALED]

History

• Adopted effective December 2, 1993 (Supp. 93-4). R19-3-358 recodified from R4-37-358 (Supp. 95-1). Repealed effective April 18, 1997 (Supp. 97-2).

Ariz. Admin. Code § R19-3-359 [REPEALED]

History

• Adopted effective December 2, 1993 (Supp. 93-4). R19-3-359 recodified from R4-37-359 (Supp. 95-1). Repealed effective April 18, 1997 (Supp. 97-2).

Ariz. Admin. Code § R19-3-360 [REPEALED]

History

• Adopted effective December 2, 1993 (Supp. 93-4). R19-3-360 recodified from R4-37-360 (Supp. 95-1). Repealed effective May 13, 1997 (Supp. 97-2).

Ariz. Admin. Code § R19-3-361 [REPEALED]

History

• Adopted effective December 2, 1993 (Supp. 93-4). R19-3-361 recodified from R4-37-361 (Supp. 95-1). Section repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code § R19-3-362 [REPEALED]

History

• Adopted effective January 6, 1994 (Supp. 94-1). R19-3-362 recodified from R4-37-362 (Supp. 95-1). Repealed effective May 13, 1997 (Supp. 97-2).

Ariz. Admin. Code § R19-3-363 [REPEALED]

History

• Adopted effective January 6, 1994 (Supp. 94-1). R19-3-363 recodified from R4-37-363 (Supp. 95-1). Repealed effective May 13, 1997 (Supp. 97-2).

Ariz. Admin. Code § R19-3-364 [REPEALED]

History

• Adopted effective January 6, 1994 (Supp. 94-1). R19-3-364 recodified from R4-37-364 (Supp. 95-1). Repealed effective May 13, 1997 (Supp. 97-2).

Ariz. Admin. Code § R19-3-365 [REPEALED]

History

• Adopted effective January 6, 1994 (Supp. 94-1). R19-3-365 recodified from R4-37-365 (Supp. 95-1). Repealed effective May 13, 1997 (Supp. 97-2).

Ariz. Admin. Code § R19-3-366 [REPEALED]

History

• Adopted effective May 23, 1994 (Supp. 94-2). R19-3-366 recodified from R4-37-366 (Supp. 95-1). Repealed effective May 13, 1997 (Supp. 97-2).

Ariz. Admin. Code § R19-3-367 [REPEALED]

History

• Adopted effective May 23, 1994 (Supp. 94-2). R19-3-367 recodified from R4-37-367 (Supp. 95-1). Repealed effective May 13, 1997 (Supp. 97-2).

Ariz. Admin. Code § R19-3-368 [REPEALED]

History

• Adopted effective May 23, 1994 (Supp. 94-2). R19-3-368 recodified from R4-37-368 (Supp. 95-1). Repealed effective May 13, 1997 (Supp. 97-2).

Ariz. Admin. Code § R19-3-369 [REPEALED]

History

• Adopted effective June 10, 1994 (Supp. 94-2). R19-3-369 recodified from R4-37-369 (Supp. 95-1). Section repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code § R19-3-370 [REPEALED]

History

• Adopted effective June 10, 1994 (Supp. 94-2). R19-3-370 recodified from R4-37-370 (Supp. 95-1). Repealed effective May 13, 1997 (Supp. 97-2).

Ariz. Admin. Code § R19-3-371 [REPEALED]

History

• Adopted effective June 10, 1994 (Supp. 94-2). R19-3-371 recodified from R4-37-371 (Supp. 95-1). Repealed effective May 13, 1997 (Supp. 97-2).

Ariz. Admin. Code § R19-3-372 [REPEALED]

History

• Adopted effective July 15, 1994 (Supp. 94-3). R19-3-372 recodified from R4-37-372 (Supp. 95-1). Repealed effective May 13, 1997 (Supp. 97-2).

Ariz. Admin. Code § R19-3-373 [REPEALED]

History

• Adopted effective July 15, 1994 (Supp. 94-3). R19-3-373 recodified from R4-37-373 (Supp. 95-1). Repealed effective May 13, 1997 (Supp. 97-2).

Ariz. Admin. Code § R19-3-374 [REPEALED]

History

• Adopted effective July 15, 1994 (Supp. 94-3). R19-3-374 recodified from R4-37-374 (Supp. 95-1). Repealed effective May 13, 1997 (Supp. 97-2).

Ariz. Admin. Code § R19-3-375 [REPEALED]

History

• Adopted effective September 15, 1994 (Supp. 94-3). R19-3-375 recodified from R4-37-375 (Supp. 95-1). Repealed effective May 13, 1997 (Supp. 97-2).

Ariz. Admin. Code § R19-3-376 [REPEALED]

History

• Adopted effective September 15, 1994 (Supp. 94-3). R19-3-376 recodified from R4-37-376 (Supp. 95-1). Repealed effective May 13, 1997 (Supp. 97-2).

Ariz. Admin. Code § R19-3-377 [REPEALED]

History

• Adopted effective October 11, 1994 (Supp. 94-4). R19-3-377 recodified from R4-37-377 (Supp. 95-1). Repealed effective May 13, 1997 (Supp. 97-2).

Ariz. Admin. Code § R19-3-378 [REPEALED]

History

• Adopted effective October 11, 1994 (Supp. 94-4). R19-3-378 recodified from R4-37-378 (Supp. 95-1). Repealed effective May 13, 1997 (Supp. 97-2).

Ariz. Admin. Code § R19-3-379 [REPEALED]

History

• Adopted effective November 28, 1994 (Supp. 94-4). R19-3-379 recodified from R4-37-379 (Supp. 95-1). Repealed effective May 13, 1997 (Supp. 97-2).

Ariz. Admin. Code § R19-3-380 [REPEALED]

History

• Adopted effective November 28, 1994 (Supp. 94-4). R19-3-380 recodified from R4-37-380 (Supp. 95-1). Repealed effective May 13, 1997 (Supp. 97-2).

Ariz. Admin. Code § R19-3-381 [REPEALED]

History

• Adopted effective December 20, 1994 (Supp. 94-4). R19-3-381 recodified from R4-37-381 (Supp. 95-1). Repealed effective May 13, 1997 (Supp. 97-2).

Ariz. Admin. Code § R19-3-382 [REPEALED]

History

• Adopted effective January 13, 1995 (Supp. 95-1). R19-3-382 recodified from R4-37-382 (Supp. 95-1). Repealed effective May 13, 1997 (Supp. 97-2).

Ariz. Admin. Code § R19-3-383 [REPEALED]

History

• Adopted effective January 13, 1995 (Supp. 95-1). R19-3-383 recodified from R4-37-383 (Supp. 95-1). Repealed effective May 13, 1997 (Supp. 97-2).

Ariz. Admin. Code § R19-3-384 [REPEALED]

History

• Adopted effective May 11, 1995 (Supp. 95-2). Repealed effective May 13, 1997 (Supp. 97-2).

Ariz. Admin. Code § R19-3-385 [REPEALED]

History

• Adopted effective May 11, 1995 (Supp. 95-2). Repealed effective May 13, 1997 (Supp. 97-2).

Ariz. Admin. Code § R19-3-386 [REPEALED]

History

• Adopted effective May 11, 1995 (Supp. 95-2). Repealed effective May 13, 1997 (Supp. 97-2).

Ariz. Admin. Code § R19-3-387 [REPEALED]

History

• Adopted effective April 20, 1995 (Supp. 95-2). Section repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code § R19-3-388 [REPEALED]

History

• Adopted effective April 20, 1995 (Supp. 95-1). Section repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code § R19-3-389 [REPEALED]

History

• Adopted effective April 20, 1995 (Supp. 95-2). Section repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code § R19-3-390 [REPEALED]

History

• Adopted effective April 20, 1995 (Supp. 95-2). Section repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code § R19-3-391 [REPEALED]

History

• Adopted effective April 20, 1995 (Supp. 95-2). Section repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code § R19-3-392 [REPEALED]

History

• Adopted effective April 20, 1995 (Supp. 95-2). Section repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code § R19-3-393 [REPEALED]

History

• Adopted effective July 17, 1995 (Supp. 95-3). Section repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code § R19-3-394 [REPEALED]

History

• Adopted effective July 17, 1995 (Supp. 95-3). Section, including Exhibit A and B, repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code § R19-3-395 [REPEALED]

History

• Adopted effective July 17, 1995 (Supp. 95-3). Section, including Exhibit C, repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code § R19-3-396 [REPEALED]

History

• Adopted effective July 17, 1995 (Supp. 95-3). Section, including Exhibit D, repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code § R19-3-397 [REPEALED]

History

• Adopted effective September 13, 1995 (Supp. 95-3). Section repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code § R19-3-398 [REPEALED]

History

• Adopted effective September 13, 1995 (Supp. 95-3). Section repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Ariz. Admin. Code § R19-3-399 [REPEALED]

History

• Adopted effective September 13, 1995 (Supp. 95-3). Section repealed by final rulemaking at 11 A.A.R. 3075, effective September 16, 2005 (05-3).

Article 4 DESIGN AND OPERATION OF LOTTERY GAMES GENERALLY

Ariz. Admin. Code § R19-3-401 Definitions

Definitions. In this Article, unless the context otherwise requires, these words and terms shall have the following meanings:

1. "Cash Value" means payment of the jackpot prize pool share amount paid in one lump sum as provided in the prize structure in the Game Profile.

2. "Drawing" means the process used to randomly select the winning play symbols from the defined game matrix.

3. "Draw game" or "On-line Game" means a game where tickets are purchased through a network of Arizona Lottery- authorized computer terminals located in retail outlets. The terminals are linked to central computerized systems that record the wagers.

4. "Fixed payout" means a set prize dollar amount for that specific prize in the prize structure.

5. "Game" or "Lottery game" means any form of play, irrespective of whether a wager is involved, played according to official rules, and determined by skill, strategy, or luck.

6. "Game option" means a game feature that is tied to a specific game which the player has a choice to play.

7. "Game play" or "play" means the selected play symbols which appear on a ticket as a single wager. More than one game play may appear on a ticket.

8. "Game Profile" means the written document in which the Lottery Commission authorizes the Director to issue an order that contains all of the non-confidential game fundamentals for a Lottery game.

9. "Game ticket" or "ticket" means a receipt produced by the Lottery or a Lottery- authorized device evidencing participation in a Lottery game or game option.

10. "Matrix" means the predetermined pool of play symbols for a game.

"Multiple winners" means a situation in which more than one claimant redeems an individual share in one wager.

"Pari-mutuel" means a system in which those holding winning tickets divide the total prize amount in proportion to their wagers.

13. "Play slip" means a form that may be used by players to select numbers, symbols and game options. A play slip entered into the lottery system will generate a ticket for a terminal-based lottery game. A single play slip may allow selection for multiple games.

13 14. "Play style" means the description in the Game Profile of the play symbols and the manner in which the game is played.

14 15. "Play symbols" means the numbers, letters, symbols, or pictures used in the matrix to determine if a player is entitled to a prize.

15. "POWERBALL" means a multi-state game that is conducted pursuant to the rules of the Multi-State Lottery Association (MUSL) and approved by a game profile.

16. "Prize category" means the value of a specific prize.

"Prize structure" means the chart of the prize value, number of prizes or prize payout percentage, any fixed payments, any parimutuel payments, and the approximate overall odds of winning the prizes.

"Prohibited games" mean on-line or electronic keno or internet games.

19. "Quick pick" means the random selection by a terminal of one or more play symbols from the defined game matrix.

20. "Selection slip" means a preprinted set of game boards provided by the Lottery upon which the player selects play symbols and game options. Each selection slip may have multiple game boards.

21 19. "Share" means any single winning game play, which is equal to any other share in the same prize division.

22 20. "Terminal" means a device authorized by the Lottery linked to central computerized systems that records the wagers for the purpose of issuing Lottery tickets and entering, receiving, and processing Lottery transactions.

23 21. "Winning numbers or winning play symbols" means the numbers or play symbols from the defined game matrix randomly selected at each drawing which determine winning game plays contained on a ticket.

History

• Adopted as an emergency effective June 10, 1983, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 83-3). Former Section R4-37-401 adopted as an emergency effective June 10, 1983, now adopted without change as a permanent rule effective September 14, 1983 (Supp. 83-5). Amended subsections (A), (D), (E), (J), (K) effective September 7, 1984 (Supp. 84-4). Amended subsection (K) effective March 14, 1985 (Supp. 85-2). Amended effective September 26, 1986 (Supp. 86-5). Amended effective June 29, 1989 (Supp. 89-2). Amended as an emergency effective September 25, 1991, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 91-3). Emergency expired. Emergency amendments permanently adopted effective March 3, 1992 (Supp. 92-1). Amended effective March 9, 1992 (Supp. 92-1). Amended effective April 4, 1994 (Supp. 94-2). R19-3-401 recodified from R4-37-401 (Supp. 95-1). Amended by final rulemaking at 11 A.A.R. 393, effective February 15, 2005 (Supp. 04-4). Amended by final rulemaking at 28 A.A.R. 3668, effective 1/3/2023.

Ariz. Admin. Code § R19-3-402 Applicability; Game Profile

A. This article applies to all Lottery games generally. Additional requirements for instant games may will be found in Article 7 of this Chapter.

B. Each game or game option shall have a Game Profile containing the following information:

1. Game name or game option name;

2. Game number;

2 3. Playstyle or Matrix and a description of how to play and win;

3. Retail sales price;

4. Purchase conditions and characteristics;

5. Play symbols and prize symbols, if any;

6. Prize structure, including the approximate odds, the prize value available, the prize payout percentage, if alternate prize structures are to be used, any subsection (C) provisions, and any special multi-jurisdictional prize specifications;

7. Special features, if any; and

8. Prize draw eligibility requirements, including filing period for eligibility in a winners drawing, if applicable.

B C. Each game or Game option may include specific variants that provide added or alternative methods of play or winning. Any variants shall be described in the Game Profile.

C D. The Commission shall approve the Game Profile prior to the game being sold to the public.

History

• Adopted effective June 27, 1997 (Supp. 97-2). Section repealed; new Section made by final rulemaking at 11 A.A.R. 393, effective February 15, 2005 (Supp. 04-4). Amended by final rulemaking at 28 A.A.R. 3668, effective 1/3/2023.

Ariz. Admin. Code § R19-3-403 Game Purchases, Characteristics, and Restrictions

A. Participation in a game may be purchased with U.S. currency, check, credit card, debit card, the exchange of a winning Lottery ticket, or any other State of Arizona approved consideration.

A B. To play any draw game, a player shall select the specified number of play symbols from the defined game matrix approved in the Game Profile for input into the terminal. Selection methods include:

Communicating the play symbols and game options to a retailer, or

2. Marking the play slip and submitting the play slip to a retailer, or

Requesting a "Quick Pick," or

Marking a "Quick Pick" box on a play slip.

B C. draw Game plays must be entered into the Lottery terminal manually or by inserting a Lottery play slip that is hand marked by the player. Facsimiles, simulations, copies of play slips, or other materials not printed or approved by the Lottery are prohibited from use.

C D. To claim a prize, a player must submit the original ticket or Lottery-approved proof of purchase for validation. play slips, store receipts, digital logs, or photographs are not proof of purchase.

D E. The ticket holder is responsible for the accuracy of ticket data when specific game symbols are requested. The Lottery shall not be liable for ticket errors.

History

• Adopted effective April 30, 1998 (Supp. 98-2). Section repealed; new Section made by final rulemaking at 11 A.A.R. 393, effective February 15, 2005 (Supp. 04-4). Amended by final rulemaking at 28 A.A.R. 3668, effective 1/3/2023.

Ariz. Admin. Code § R19-3-404 Drawings

A. Drawings, when applicable, shall be held at the times and places established in the Game Profile.

B. Mechanical, electronic, or computerized drawing methods may be used to make the random selection of winning play symbols as defined in the Game Profile.

History

• New Section made by final rulemaking at 11 A.A.R. 393, effective February 15, 2005 (Supp. 04-4). Amended by final rulemaking at 28 A.A.R. 3668, effective 1/3/2023.

Ariz. Admin. Code § R19-3-405 Determination of a Winning Game Play

A. A player shall win the prize(s) indicated in the prize structure in the Game Profile in the manner described in the approved Game Profile.

B. Players may win on each game play on a ticket.

C. There may be multiple ways to win in a single Game as described in the Game Profile.

D. The prize structure ordered in the Game Profile shall determine the pari-mutuel and/or fixed prize amount to be paid on a single winning game play.

History

• New Section made by final rulemaking at 11 A.A.R. 393, effective February 15, 2005 (Supp. 04-4). Amended by final rulemaking at 28 A.A.R. 3668, effective 1/3/2023.

Ariz. Admin. Code § R19-3-406 Ticket Ownership and Responsibility; Prize Payment

A. Until a ticket is signed, the ticket is owned by its physical possessor.

B. The owner of a winning Game ticket is the person whose signature appears upon the ticket in the area designated for that purpose.

1. If more than one signature appears on the ticket, the Director is authorized to require that one or more of those claimants be designated to receive the payment. A claim form shall be submitted by each claimant who is designated to receive a portion of the prize claimed from the winning ticket.

2. Prior to payment of a prize, a claimant who has signed the ticket may designate another claimant to receive the prize by signing a relinquishment of claim statement.

3. When the winning ticket was purchased by a group of players, the group shall designate one of the claimants to sign the ticket for the group. Each claimant shall complete an individual claim form to receive the claimant's portion of the prize.

4. In the event there is an inconsistency in the information submitted on a claim form and as shown on the winning ticket, the Director shall authorize an investigation and withhold all winnings payable to the ticket owner or holder until such time as the Director is satisfied that the proper person is being paid.

C. Prior to paying the claimant a prize of $600 or more, the Lottery shall match the winner's name against the lists of persons owing a debt to a participating state agency, furnished to the Lottery under A.R.S. § 5-575.

1. If there is a match on any of the claim forms submitted with a ticket, the amount that is owed shall be deducted from the prize due the claimant.

2. The claimant shall be notified in writing of the amount of the debt set-off and the agency to which it shall be paid.

3. If the claimant has two or more agencies which are owed a debt, the Lottery shall pay a pro-rata share to each of the agencies, except that a Department of Economic Security overdue child support set-off shall be paid in full before any amount shall be paid to another agency.

4. The claimant shall be notified in writing that a right to appeal the set-off exists and must be commenced within 30 days of the receipt of this notification. The notification shall include the name and address of the agency with which to file the appeal.

5. If, after deducting withholding taxes and the set-off, a portion of the prize remains, then that portion shall be paid to the winner with the notification of set-off.

6. The amount of set-off shall be forwarded to the agency, and that agency shall be responsible for any appeal and crediting of the payment against the amount owed or refunding any amount to the winner.

7. Upon a determination that a set-off is due, the winner loses the right under subsection (B)(2) to assign any portion of the claim.

D. Prizes shall be paid by cash, check, pre-paid debit card, or if requested by the player, by Lottery tickets.

1. If a ticket contains more than one winning game play, any prize amounts shall be combined and paid in accordance with the prize payment limits specified in Section R19-3-408.

2. Each winning game play wins the prize amount specified in the Game Profile.

E. The Lottery is not responsible for lost or stolen tickets.

History

• New Section made by final rulemaking at 11 A.A.R. 393, effective February 15, 2005 (Supp. 04-4). Pursuant to authority of A.R.S. § 41-1011(C), Laws 2010, 6th Special Session, Ch. 2, authorizes the transfer of A.R.S. citations. Therefore the A.R.S. citation in subsection (C) was updated. Agency request filed September 24, 2012, Office File No. M12-343 (Supp. 12-3). Amended by final rulemaking at 28 A.A.R. 3668, effective 1/3/2023.

Ariz. Admin. Code § R19-3-407 Ticket Validation Requirements

A. Each game ticket shall be validated prior to the payment of a prize.

B. To be eligible for a prize, a ticket holder must present the original ticket or other Lottery-approved proof of ticket purchase meeting all of the following requirements;

1. Issued by the Lottery through a licensed retailer approved self-service terminal, or other legally authorized manner;

2. Intact and not mutilated, altered, unreadable, reconstituted, or tampered with in any manner;

3. Not blank, partially blank, misregistered, defectively printed, or produced in error;

4. Not a reprinted ticket stating "Not for Sale" or "VOID" on the ticket;

Not counterfeit or forged in whole or in part;

6. Not stolen or appearing on any list of omitted or missing tickets on file with the Lottery;

7. The display printed on the ticket shall correspond precisely with the approved artwork on file at the Lottery;

6 8. Able to pass all other confidential validation tests determined by the Director; and

7. Validated in accordance with the provisions of sections R19-3-406 and R19-3-408.

8 9. Where available, the ticket data is:

a. Recorded in the designated central computer system prior to the drawing;

b. In agreement with the computer record; and

c. In the Lottery's official file of winning tickets;

9 10. Any winning game play on the ticket consists of a selected set of play symbols from the defined game matrix shown in the Game Profile.

11. Where required by the Game Profile, play and prize symbols shall have the captions that confirm and agree with those applicable to the game;

10 12. Not previously paid.

C. If the ticket fails to pass any of the requirements in Section R19-3-407(B), the ticket is void and ineligible for any prize payout.

History

• New Section made by final rulemaking at 11 A.A.R. 393, effective February 15, 2005 (Supp. 04-4). Amended by final rulemaking at 28 A.A.R. 3668, effective 1/3/2023.

Ariz. Admin. Code § R19-3-408 Procedure for Claiming Prizes

A. To claim a prize of up to and including $599, the claimant shall present the ticket or other Lottery-approved proof of game purchase to any participating licensed Lottery retailer or to a Lottery office, or mail the ticket to a Lottery office for validation. The licensed retailer shall pay a winner a prize up to and including $100 and may pay a winner a prize up to and including $599 provided that:

1. All applicable ticket validation criteria in this chapter has been satisfied; and

2. A proper validation slip, which is an authorization to pay, has been issued by the terminal.

B. To claim a prize that the retailer does not validate or is not authorized to pay, including all prizes of $600 or more, the claimant shall submit a claim form, available from any retailer and online, and the ticket to the Lottery. If the claim is:

1. Verified and validated by the Lottery as a winning ticket, the Lottery shall make payment of the amount due to the claimant, less any authorized debt set-off amounts and/or withheld taxes.

2. Denied by the Lottery, the claimant shall be notified within 15 days from the day the claim is received in the Lottery office.

C. If a prize winner dies prior to receiving full payment, the Lottery shall pay all remaining prize money to the prize winner's beneficiary or to any person designated by an appropriate judicial order.

D. The Lottery is discharged of all liability upon claim verification and payment of the prize.

E. By accepting a prize, the winner, his or her heirs, or legal representative agrees to indemnify and hold harmless, release, and discharge the Lottery, its employees, directors, and Commissioners from and against loss, claim, damage, suit, or injury arising out of or relating to the acceptance of the prize.

F. Payment of prize money shall not be accelerated ahead of its normal date of payment.

History

• New Section made by final rulemaking at 11 A.A.R. 393, effective February 15, 2005 (Supp. 04-4). Amended by final rulemaking at 28 A.A.R. 3668, effective 1/3/2023.

Ariz. Admin. Code § R19-3-409 Claim Period

A. In order for the claimant to receive payment, a winning on-line game ticket shall be received by the Lottery or a retailer no later than 5:00 p.m. (Phoenix time) on the 180th calendar day following the game drawing date or the announced end of the game in question.

B. If a claimant presents a valid winning ticket to a retailer for payment on the last day of the applicable claim period and is not paid the prize, the Director is authorized to pay the prize if the claimant presents the valid winning ticket to the Lottery no later than 5:00 p.m. (Phoenix time) on the following business day.

C. The end of any game shall be designated by the Director and on file at the Lottery.

History

• New Section made by final rulemaking at 11 A.A.R. 393, effective February 15, 2005 (Supp. 04-4). Amended by final rulemaking at 28 A.A.R. 3668, effective 1/3/2023.

Ariz. Admin. Code § R19-3-410 Disputes Concerning a Ticket or Prize

A. If a dispute between the Lottery and a claimant occurs concerning a ticket or prize, the Lottery, at the sole discretion of the Director, is authorized to may replace the disputed ticket or prize with a ticket or tickets of equivalent sales price for any subsequent drawing from the same game, or any current game of equivalent value.

B. If a defective ticket is purchased, the Lottery, at the sole discretion of the Director, may replace the defective ticket with a ticket or tickets of equivalent sales price from the same game, or any current game of equivalent value.

C. Replacement of the disputed ticket is the sole and exclusive remedy for a claimant.

D If a dispute between the Lottery and a claimant occurs concerning the eligibility of an entry into an.y drawing, the Director is authorized to place any person's eligible entry into a subsequent drawing or drawings.

History

• New Section made by final rulemaking at 11 A.A.R. 393, effective February 15, 2005 (Supp. 04-4). Amended by final rulemaking at 28 A.A.R. 3668, effective 1/3/2023.

Ariz. Admin. Code § R19-3-411 Prize Fund

A. Not less than 50 percent of the total annual revenue accruing from the sale of on-line draw game tickets shall be deposited in the state lottery prize fund for payment of prizes to the holders of winning tickets.

B. If a draw game is terminated for any reason, any remaining prize monies shall be held by the Lottery for a period of 180 days from the date of the last drawing and then used for additional prizes in any other Lottery game.

History

• New Section made by final rulemaking at 11 A.A.R. 393, effective February 15, 2005 (Supp. 04-4). Amended by final rulemaking at 28 A.A.R. 3668, effective 1/3/2023.

Ariz. Admin. Code § R19-3-412 Multi-State Lottery Association Games

A. The Arizona Lottery is a participating member of the Multi-State Lottery Association (MUSL) referred to as a "party lottery" in the MUSL game rules.

B. A Game Profile approved by the Commission and conforming to the information required in R19-3-403 shall be on file at the Arizona State Lottery for all MUSL games played in Arizona.

History

• New Section made by final rulemaking at 11 A.A.R. 393, effective February 15, 2005 (Supp. 04-4). Amended by final rulemaking at 28 A.A.R. 3668, effective 1/3/2023.

Article 5 PROCUREMENTS

Ariz. Admin. Code § R19-3-501 Definitions

In this Article, unless the context otherwise requires:

1. "Affiliate" means any person whose governing instruments require it to be bound by the decision of another person or whose governing board includes enough voting representatives of the other person to cause or prevent action, whether or not the power is exercised. The term applies to persons doing business under a variety of names, persons in a parent-subsidiary relationship, or persons that are similarly affiliated.

2. "Aggregate dollar amount" means purchase price, including taxes and delivery charges, for the term of the contract and accounting for all allowable extensions and options.

3. "Best and Final Offer" means a revision to an offer submitted after negotiations are completed that contain the offeror's most favorable terms for price, service, and products to be delivered.

3.4. "Best interests of the Lottery" means advantageous to the Lottery.

4.5. "Bid" means an offer in response to solicitation.

5.6. "Business" means a corporation, partnership, individual, sole proprietorship, joint stock company, joint venture, or other private legal entity.

6.7. "Change order" means a written order that is signed by the procurement officer and that directs the contractor to make changes that the changes clause of the contract authorizes the procurement officer to order.

7. "Competitive range" is a range determined by the procurement officer on the basis of the criteria stated in the solicitation and an initial review of the proposals submitted. Those proposals that are susceptible for award after the initial review of all original proposals in accordance with the evaluation criteria and a comparison and ranking of original proposals shall be in the competitive range. Those proposals that have no reasonable chance for award when compared on a relative basis with more highly ranked proposals will not be in the competitive range. Proposals to be considered within the competitive range must, at a minimum, demonstrate the following:

a. Affirmative compliance with mandatory requirements designated in the solicitation.

b. An ability to deliver goods or services on terms advantageous to the Lottery sufficient to be entitled to continue in the competition.

c. That the proposal is technically acceptable as submitted.

"Contract" means an agreement, regardless of what it is called, for the procurement of Lottery equipment, tickets, and related materials.

9. "Contract amendment" means a written alteration in the terms or conditions of a contract accomplished by mutual action of the parties to the contract or a unilateral exercise of a right contained in the contract.

"Contractor" means a person who has a contract with the Lottery.

11. "Cost data" means information concerning the actual or estimated cost of labor, material, overhead, and other cost elements that have been incurred or are expected to be incurred by the contractor in performing the contract.

12. "Cost-plus-a-percentage-of-cost-contract" means the parties to a contract agree that the fee will be a predetermined percentage of the cost of work performed and the contract does not limit the cost and fee before authorization of performance.

13. "Cost reimbursement contract" means a contract under which a contractor is reimbursed for costs that are reasonable, allowable, and allocable in accordance with the contract terms and the provisions of this Article, and a fee, if provided for in the contract.

14. "Day" means a calendar day and is computed under A.R.S. § 1-243, unless otherwise specified in the solicitation or contract.

15. "Defective data" means data that is inaccurate, incomplete, or outdated.

16. "Director" means the Executive Director of the State Lottery.

"Discussions" means oral or written negotiation between the Lottery and an offeror during which information is exchanged about specifications, scope of work, terms and conditions, and price included in an initial proposal. Communication with an offeror for the sole purpose of clarification does not constitute "discussions."

"Filed" means delivered to the procurement officer or to the Director, whichever is applicable, in a manner specified by the Arizona Procurement Code or a solicitation.

19. "Governing instruments" means legal documents that establish the existence of an organization and define its powers, including articles of incorporation or association, constitution, charter, bylaws, or similar documents.

20. "Interested party" means an offeror or prospective offeror whose economic interest may be affected substantially and directly by the issuance of a solicitation, the award of a contract, or by the failure to award a contract. Whether an offeror or prospective offeror has an economic interest depends upon the circumstances of each case.

21. "Invitation for bids" means all documents, whether attached or incorporated by reference, that are used to solicit bids in accordance with R19-3-508.

22. "Minor informality" means any mistake, excluding a judgmental error, that has negligible effect on price, quantity, quality, delivery, or other contractual terms and the waiver or correction of which does not prejudice other bidders or offerors.

23. "Multiple award" means a grant of an indefinite quantity contract for one or more similar materials or services to more than one bidder or offeror.

24. "Multi-step sealed bidding" means a two-phase bidding process consisting of a technical phase and a price phase.

25. "Negotiation" means an exchange or series of exchanges, including a request for a best and final offer, between the Lottery and an offeror or contractor that allows the Lottery or the offeror or contractor to revise an offer or contract, unless revision is specifically prohibited by these rules or statutes.

26. "Offer" means a response to a solicitation.

27. "Offeror" means a person who responds to a solicitation.

28. "Person" means any corporation, limited liability company, limited liability partnership, partnership, business, individual, union, committee, club, other organization, or group of individuals.

29. "Price data" means information concerning prices, including profit, for materials, services, or construction substantially similar to the materials, services, or construction to be procured under a contract or subcontract. In this definition, "prices" refers to offered selling prices, historical selling prices, or current selling prices of the items to be purchased.

30. "Procurement" means all functions that pertain to obtaining any materials or services for the design or operation of a Lottery game or the purchase of Lottery equipment, tickets, and related materials.

31. "Procurement file" means the official records file of the Lottery. The procurement file shall include (electronic or paper) the following:

a. List of notified vendors;

b. Final solicitation;

c. Solicitation amendments;

d. Bids and offers;

e. Offer revisions and best and final offers;

f. Discussions;

g. Clarifications;

h. Final evaluation reports; and

i. Additional information, if requested by the procurement officer.

32. "Proposal" means an offer submitted in response to a solicitation.

"Prospective offeror" means a person that expresses an interest in a specific solicitation.

34. "Purchase description" means the words used in a solicitation to describe Lottery materials to be procured and includes specifications attached to, or made a part of, the solicitation.

"Purchase request" or "purchase requisition" means a document or electronic transmission in which the Director requests that a contract be entered into for a specific need and may include a description of a requested item, delivery schedule, transportation data, criteria for evaluation, suggested sources of supply, and information needed to make a written determination required by this Article.

36. "Request for proposals" means all documents, whether attached or incorporated by reference, that are used to solicit proposals in accordance with R19-3-509.

37. "Responsible bidder or offeror" means a person who has the capability to perform contract requirements and the integrity and reliability necessary to ensure a good faith performance.

38. "Responsive bidder or offeror" means a person who submits a bid that conforms in all material respects to the invitation for bids or request for proposals.

39. "Reverse auction" means a procurement method in which offerors are invited to bid on specified goods or services through online bidding and real-time electronic bidding. During an electronic bidding process, offerors' prices or relative ranking are available to competing offerors and offerors may modify their offer prices until the closing date and time.

40. "Services" means the labor, time, or effort furnished by a contractor with no expectation that a specific end product other than required reports and performance will be delivered. Services does not include employment agreements or collective bargaining agreements.

"Significant procurement role":

a. Means any role that includes any of the following duties:

i. Participating in the development of a procurement.

ii. Participating in the development of an evaluation tool.

iii. Approving a procurement or an evaluation tool.

iv. Soliciting quotes greater than ten thousand dollars for the provision of materials or services.

v. Serving as a technical advisor or an evaluator who evaluates a procurement.

vi. Recommending or selecting a vendor that will provide materials or services to the Lottery.

vii. Serving as a decision maker or designee on a protest or an appeal by a party regarding a Lottery procurement selection or decision.

b. Does not include making a decision on developing specifications and the scope of work for a procurement if the decision is based on the application of commonly accepted industry standards or known published standards of the Lottery as applied to the project, services, goods, or materials.

41.42. "Small business" means a for-profit or not-for-profit organization, including its affiliates, with fewer than 100 full-time employees or gross annual receipts of less than four million dollars for the last complete fiscal year.

42.43. "Solicitation" means an invitation for bids, a request for technical offers, a request for proposals, a request for quotations, or any other invitation or request issued by the Lottery to invite a person to submit an offer.

43.44. "Specification" means a description of the physical or functional characteristics, or of the nature of a Lottery material or service. Specification includes a description of any requirement for inspecting, testing, or preparing a Lottery material for delivery.

44.45. "Subcontractor" means a person who contracts to perform work or render service to a contractor or to another subcontractor as a part of a contract with the Lottery.

45.46. "Suspension" means an action taken by the Director of the Department of Administration under R2-7-C901 that temporarily disqualifies a person from participating in a state procurement process.

46.47. "Technical offer" means unpriced written information from a prospective contractor stating the manner in which the prospective contractor intends to perform certain work, its qualifications, and its terms and conditions.

47.48. "Trade secret" means information, including a formula, pattern, device, compilation, program, method, technique, or process, that is the subject of reasonable efforts to maintain its secrecy and that derives independent economic value, actual or potential, as a result of not being generally known to and not being readily ascertainable by legal means.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-501 repealed, new Section R4-37-501 renumbered from R4-37-502 and amended effective May 7, 1990 (Supp. 90-2). R19-3-501 recodified from R4-37-501 (Supp. 95-1). Amended effective December 16, 1997 (Supp. 97-4). Amended by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Amended by final rulemaking at 19 A.A.R. 1641, effective August 4, 2013 (Supp. 13-2). Amended by final rulemaking at 22 A.A.R. 2966, effective 11/21/2016.

Ariz. Admin. Code § R19-3-502 Written Determination

A. If a written determination is required under applicable law, the procurement officer shall include the basis for the action taken in the written determination.

B. The procurement officer shall place the written determination into the Lottery's procurement file.

C. A procurement file is considered the official records file of the Lottery.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-502 renumbered to R4-37-501, new Section R4-37-502 renumbered from R19-3-503 and amended effective May 7, 1990 (Supp. 90-2). R19-3-502 recodified from R4-37-502 (Supp. 95-1). Amended effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4).

Ariz. Admin. Code § R19-3-503 Confidential Information

A. If a person wants to assert that a person's offer, specification, or protest contains a trade secret or other proprietary information, a person shall include with the submission a statement supporting this assertion. A person shall clearly designate the beginning and end of any information that is designated a trade secret or other proprietary information, using the term "confidential." Contract terms and conditions, pricing, and information generally available to the public are not considered confidential information under this Section.

B. Until a final determination is made under subsection (D), the procurement officer shall not disclose information designated as confidential under subsection (A) except to those individuals deemed by the procurement officer to have a legitimate Lottery interest.

C. Upon protest to a confidential submission, the procurement officer shall request that the offeror and protester submit factual and legal comments on the issue by a date certain.

D. After reviewing the statements or expiration of the time to comment, or both, the procurement officer shall make a determination that:

The designated information is confidential and the procurement officer shall not disclose the information except to those individuals deemed by the procurement officer to have a legitimate Lottery interest,

2. The designated information is not confidential, or

3. Additional information is required before a final confidentiality determination can be made.

E. If the procurement officer determines that information submitted is not confidential, a person who made the submission shall be notified in writing. The notice shall include a time period for requesting a review of the determination. The procedures and requirements for review in A.R.S. Title 41, Chapter 6, Article 10 apply to such a review by the Director.

F. The procurement officer may release information designated as confidential under subsection (A) if:

1. A request for review is not received by the procurement officer within the time period specified in the notice; or

2. The Director, after review of the recommended findings of fact and conclusions of law, makes a written determination that the designated information is not confidential.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-503 renumbered to R4-37-502, new Section R4-37-503 renumbered from R19-3-504 and amended effective May 7, 1990 (Supp. 90-2). R19-3-503 recodified from R4-37-503 (Supp. 95-1). Amended effective December 16, 1997 (Supp. 97-4). Amended by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Amended by final rulemaking at 19 A.A.R. 1641, effective August 4, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-3-504 General Provisions

A. A person that participates in any aspect of a specific procurement as an advisor to the Lottery shall not receive any direct or indirect benefit from a contract for the procurement.

B. The Director shall not pay for any material or service unless fully approved.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-504 renumbered to R4-37-503, new Section R4-37-504 renumbered from R4-37-505 and amended effective May 7, 1990 (Supp. 90-2). R19-3-504 recodified from R4-37-504 (Supp. 95-1). Amended effective December 16, 1997 (Supp. 97-4). Amended by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4).

Ariz. Admin. Code § R19-3-505 Prospective Suppliers List

A. The procurement officer may refer to a prospective suppliers list maintained by the state procurement administrator as a resource for selection of suppliers.

B. The procurement officer may choose to compile and maintain a Lottery prospective suppliers list as a resource for selection of suppliers.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R19-3-505 renumbered to R4-37-504, new Section R19-3-505 renumbered from R4-37-507 and amended effective May 7, 1990 (Supp. 90-2). R19-3-505 recodified from R4-37-505 (Supp. 95-1). Amended effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Amended by final rulemaking at 19 A.A.R. 1641, effective August 4, 2013 (Supp. 13-2). Amended by final rulemaking at 22 A.A.R. 2966, effective 11/21/2016.

Ariz. Admin. Code § R19-3-506 Source Selection Method: Determination Factors

A. The procurement officer shall determine the applicable source selection method for a procurement, estimating the aggregate dollar amount of the contract and ensuring that the procurement is not artificially divided, fragmented, or combined to circumvent A.R.S. §§ 5-559 and 41-2501(G).

B. If the procurement officer believes that an existing Arizona state contract is sufficient to satisfy the Lottery's requirements, the procurement officer may procure those materials and services covered by such contracts.

C. The procurement officer shall determine in writing that an invitation for bid is not practicable or advantageous to the Lottery before soliciting for offers for a competitive sealed proposal. An invitation for bid may not be practicable or advantageous if it is necessary to:

1. Use a contract other than a fixed-price type;

2. Negotiate with offerors concerning the technical and price aspects of their offers and any other aspects of their offer or the solicitation;

3. Permit offerors to revise their offers; or

4. Compare the different price, quality, and contractual factors of the offers submitted.

D. The procurement officer may make a class determination that it is either not practicable or not advantageous to the Lottery to procure specified types of materials or services by invitation for bid. The procurement officer may modify or revoke a class determination at any time.

E.C. The procurement officer shall not award a contract or incur an obligation on behalf of the Lottery unless sufficient funds are available for the procurement, consistent with A.R.S. § 35-154. If it is reasonable to believe that sufficient funds will become available for a procurement, the procurement officer may issue a notice with the solicitation indicating that funds are not currently available and that any contract awarded will be conditioned upon the availability of funds.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-506 repealed, new Section R4-37-506 renumbered from R4-37-508 and amended effective May 7, 1990 (Supp. 90-2). R19-3-506 recodified from R4-37-506 (Supp. 95-1). Amended effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Pursuant to authority of A.R.S. § 41-1011(C), Laws 2010, 6th Special Session, Ch. 2, authorizes the transfer of A.R.S. citations. Therefore the first A.R.S. citation in subsection (A) was updated. Agency request filed September 24, 2012, Office File No. M12-343 (Supp. 12-3). Amended by final rulemaking at 19 A.A.R. 1641, effective August 4, 2013 (Supp. 13-2). Amended by final rulemaking at 22 A.A.R. 2966, effective 11/21/2016.

Ariz. Admin. Code § R19-3-507 Solicitation

A. The procurement officer shall issue a solicitation at least 14 days before the offer due date and time, unless the procurement officer determines a shorter time is necessary for a particular procurement. If a shorter time is necessary, the procurement officer shall document the specific reasons in the procurement file.

B. The procurement officer shall:

1. Advertise the procurement not less than two weeks before offer due date at least one time in a newspaper of general circulation and place the notice on the Lottery web site; and

2. At a minimum, provide written notice to the prospective suppliers that have registered with the Lottery's procurement officer for the specific material, service, or construction solicited.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-507 renumbered to R4-37-505, new Section R4-37-507 renumbered from R4-37-509 and amended effective May 7, 1990 (Supp. 90-2). R19-3-507 recodified from R4-37-507 (Supp. 95-1). Amended effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4).

Ariz. Admin. Code § R19-3-508 Bid Solicitation Requirements

The procurement officer shall include the following in the solicitation:

1. Instruction to offerors, including:

a. Instructions and information to offerors concerning the offer submission requirements, offer due date and time, the location where offers or other documents will be received, and the offer acceptance period;

b. The deadline date for requesting a substitution or exception to the solicitation;

c. The manner by which the offeror is required to acknowledge amendments;

d. The minimum required information in the offer;

e. The specific requirements for designating trade secrets and other proprietary information as confidential;

f. Any specific responsibility criteria;

g. Whether the offeror is required to submit samples, descriptive literature, or technical data with the offer;

h. Any evaluation criteria;

i. A statement of where documents incorporated by reference are available for inspection and copying;

j. A statement that the agency may cancel the solicitation or reject an offer in whole or in part;

k. Certification by the offeror that submission of the offer did not involve collusion or other anticompetitive practices;

l. Certification by the offeror of compliance with A.R.S. § 41-3532 when offering electronics or information technology products, services, or maintenance;

m. That the offeror is required to declare whether the offeror has been debarred, suspended, or otherwise lawfully prohibited from participating in any public procurement activity, including, but not limited to, being disapproved as a subcontractor of any public procurement unit or other governmental body;

n. Any bid security required;

o. The means required for submission of an offer. The solicitation shall specifically indicate whether hand delivery, U.S. mail, electronic mail, facsimile, or other means are acceptable methods of submission;

p. Any designation of the specific bid items and amounts to be recorded at offer opening; and

q. Any other offer submission requirements;

Specifications, including:

a. Any purchase description, specifications, delivery or performance schedule, and inspection and acceptance requirements;

b. If a brand name or equivalent specification is used, instructions that the use of a brand name is for the purpose of describing the standard of quality, performance, and characteristics desired and is not intended to limit or restrict competition. The solicitation shall state that products substantially equivalent to the brands designated qualify for consideration; and

c. Any other specification requirements;

3. Terms and Conditions, including:

a. Whether the contract will include an option for extension, and

b. Any other contract terms and conditions.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-508 renumbered to R4-37-506, new Section R4-37-508 renumbered from R4-37-510 and amended effective May 7, 1990 (Supp. 90-2). R19-3-508 recodified from R4-37-508 (Supp. 95-1). Amended effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Amended by final rulemaking at 19 A.A.R. 1641, effective August 4, 2013 (Supp. 13-2). Amended by final rulemaking at 22 A.A.R. 2966, effective 11/21/2016.

Ariz. Admin. Code § R19-3-509 Request for Proposal Solicitation Requirements

The procurement officer shall include the following in the solicitation:

1. Instructions to offerors, including:

a. Instructions and information to offerors concerning the offer submission requirements, offer due date and time, the location where offers will be received, and the offer acceptance period;

b. The deadline date for requesting a substitution or exception to the solicitation;

c. The manner by which the offeror is required to acknowledge amendments;

d. The minimum information required in the offer;

e. The specific requirements for designating trade secrets and other proprietary information as confidential;

f. Any specific responsibility or susceptibility criteria;

g. Whether the offeror is required to submit samples, descriptive literature, and technical data with the offer;

h. Evaluation factors and the relative order of importance;

i. A statement of where documents incorporated by reference are available for inspection and copying;

j. A statement that the agency may cancel the solicitation or reject an offer in whole or in part;

k. Certification by the offeror that submission of the offer did not include collusion or other anticompetitive practices;

l. Certification by the offeror of compliance with A.R.S. § 41-3532 when offering electronics or information technology products, services, or maintenance;

m. That the offeror is required to declare whether the offeror has been debarred, suspended, or otherwise lawfully prohibited from participating in any public procurement activity, including, but not limited to, being disapproved as a subcontractor of any public procurement unit or other governmental body;

n. Any offer security required;

o. The means required for submission of offer. The solicitation shall specifically indicate whether hand delivery, U.S. mail, electronic mail, facsimile, or other means are acceptable methods of submission;

p. Any cost or pricing data required;

q. The type of contract to be used;

r. A statement that negotiations may be conducted with offerors reasonably susceptible of being selected for award; and

s. Any other offer requirements specific to the solicitation.

2. Specifications, including:

a. Any purchase description, specifications, delivery or performance schedule, and inspection and acceptance requirements;

b. If a brand name or equivalent specification is used, instructions that the use of a brand name is for the purpose of describing the standard of quality, performance, and characteristics desired and is not intended to limit or restrict competition. The solicitation shall state that products substantially equivalent to those brands designated shall qualify for consideration; and

c. Any other specification requirements specific to the solicitation.

3. Terms and Conditions, including:

a. Whether the contract is to include an extension option, and

b. Any other contract terms and conditions.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-509 renumbered to R4-37-507, new Section R4-37-509 renumbered from R4-37-512 and amended effective May 7, 1990 (Supp. 90-2). R19-3-509 recodified from R4-37-509 (Supp. 95-1). Amended effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Amended by final rulemaking at 19 A.A.R. 1641, effective August 4, 2013 (Supp. 13-2). Amended by final rulemaking at 22 A.A.R. 2966, effective 11/21/2016.

Ariz. Admin. Code § R19-3-510 Pre-Offer Conferences

The procurement officer may conduct one or more pre-offer conferences. If a pre-offer conference is conducted for a solicitation, it shall be within a reasonable time prior to the offer due date and time to discuss the procurement requirements and solicit comments from prospective offerors. Amendments to the solicitation may be issued, if necessary, in accordance with R19-3-511.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-510 renumbered to R4-37-508, new Section R4-37-510 renumbered from R4-37-513 and amended effective May 7, 1990 (Supp. 90-2). R19-3-510 recodified from R4-37-510 (Supp. 95-1). Amended effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Amended by final rulemaking at 22 A.A.R. 2966, effective 11/21/2016.

Ariz. Admin. Code § R19-3-511 Solicitation Amendment

A. The procurement officer shall issue a solicitation amendment to do any or all of the following:

1. Make changes in the solicitation,

2. Correct defects or ambiguities,

3. Provide additional information or instructions, or

Extend the offer due date and time if the procurement officer determines that an extension is in the best interest of the Lottery.

B. If a solicitation is changed by a solicitation amendment, the procurement officer shall notify suppliers to whom the procurement officer distributed the solicitation.

C. It is the responsibility of the offeror to obtain any solicitation amendments. An offeror shall acknowledge receipt of an amendment in the manner specified in the solicitation or solicitation amendment on or before the offer due date and time.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-511 repealed, new Section R4-37-511 renumbered from R4-37-514 and amended effective May 7, 1990 (Supp. 90-2). R19-3-511 recodified from R4-37-511 (Supp. 95-1). Former Section R19-3-511 renumbered to R19-3-513 and amended; new Section R19-3-511 adopted effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Amended by final rulemaking at 19 A.A.R. 1641, effective August 4, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-3-512 Modification or Withdrawal of Offer before Offer Due Date and Time

A. An offeror may modify or withdraw its offer, in writing, before the offer due date and time.

B. The procurement officer shall place the document submitted by the offeror in the procurement file as a record of the modification or withdrawal.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-512 renumbered to R4-37-509, new Section R4-37-512 renumbered from R4-37-515 and amended effective May 7, 1990 (Supp. 90-2). R19-3-512 recodified from R4-37-512 (Supp. 95-1). Former Section R19-3-512 renumbered to R19-3-514 and amended; new Section R19-3-512 adopted effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4).

Ariz. Admin. Code § R19-3-513 Cancellation of a Solicitation before Offer Due Date and Time

A. Based on the best interest of the Lottery, the procurement officer may cancel a solicitation before the offer due date and time.

B. The procurement officer shall notify suppliers to whom the procurement officer distributed the solicitation.

C. The procurement officer shall not open offers after cancellation. The procurement officer may discard the offer after 30 days from notice of solicitation cancellation, unless the offeror requests the offer be returned.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-513 renumbered to R4-37-510, new Section R4-37-513 renumbered from R19-3-516 and amended effective May 7, 1990 (Supp. 90-2). R19-3-513 recodified from R4-37-513 (Supp. 95-1). Former Section R19-3-513 renumbered to R19-3-515 and amended; new Section R19-3-513 renumbered from R19-3-511 and amended effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4).

Ariz. Admin. Code § R19-3-514 Receipt, Opening, and Recording of Offers

A. The procurement officer shall maintain a record of offers received for each solicitation and shall record the time and date when an offer is received. The procurement officer shall store each unopened offer in a secure place until the offer due date and time.

B. The Lottery may open an offer to identify the offeror. If this occurs, the procurement officer shall record the reason for opening the offer, the date and time the offer was opened, and the solicitation number. The procurement officer shall secure the offer and retain it for public opening.

C. For a bid solicitation, the procurement officer shall open offers after the offer due date and time. The procurement officer shall record the name of each offeror, the amount of each offer, and any other relevant information as determined by the procurement officer. The procurement officer shall make the record of offers available for public viewing.

D. For a proposal solicitation, the procurement officer shall open offers after the offer due date and time. The procurement officer shall record the name of each offeror and any other relevant information as determined by the procurement officer. The procurement officer shall make the record of offers available for public viewing.

E. Except for the information identified in subsections (C) and (D), the procurement officer shall ensure that information contained in the offer remains confidential until the contract becomes effective and binding and is shown only to those persons assisting in the evaluation process and the Lottery Commissioners, after award, and before the contract becomes effective and binding.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-514 renumbered to R4-37-511, new Section R4-37-514 renumbered from R4-37-517 and amended effective May 7, 1990 (Supp. 90-2). R19-3-514 recodified from R4-37-514 (Supp. 95-1). Former Section R19-3-514 renumbered to R19-3-516 and amended; new Section R19-3-514 renumbered from R19-3-512 and amended effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Amended by final rulemaking at 19 A.A.R. 1641, effective August 4, 2013 (Supp. 13-2). Amended by final rulemaking at 22 A.A.R. 2966, effective 11/21/2016.

Ariz. Admin. Code § R19-3-515 Late Offers, Modifications, Withdrawals

A. If an offer, modification, or withdrawal is received after the due date and time, at the location designated in the solicitation, the procurement officer shall determine the offer, modification, or withdrawal as late.

B. The procurement officer shall reject a late offer, modification, or withdrawal unless:

1. The document is received before the contract award at the location designated in the solicitation; and

2. The document would have been received by the offer due date and time, but for the action or inaction of Lottery personnel.

C. Upon receiving a late offer, modification, or withdrawal, the procurement officer shall:

1. If the document is hand delivered, refuse to accept delivery; or

2. If the document is not hand delivered, record the time and date of receipt and promptly send written notice of late receipt to the offeror. The procurement officer may discard the document within 30 days after the date on the notice unless the offeror requests the document be returned.

D. The procurement officer shall document a refusal under subsection (C)(1) and place the document or a copy of the notice required in subsection (C)(2) in the procurement file.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-515 renumbered to R4-37-512, new Section R4-37-515 renumbered from R4-37-518 and amended effective May 7, 1990 (Supp. 90-2). R19-3-515 recodified from R4-37-515 (Supp. 95-1). Amended effective December 16, 1997 (Supp. 97-4). Former Section R19-3-515 renumbered to R19-3-517 and amended; new Section R19-3-515 renumbered from R19-3-513 and amended effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4).

Ariz. Admin. Code § R19-3-516 Cancellation of Solicitation after Receipt of Offers and before Award

A. Based on the best interest of the Lottery, the procurement officer may cancel a solicitation after offer due date and time. The procurement officer shall prepare a written justification for cancellation and place it in the procurement file.

B. The procurement officer shall notify offerors of the cancellation in writing.

C. The procurement officer shall retain offers received under the cancelled solicitation in the procurement file. If the Lottery intends to issue another solicitation within six months after cancellation of the procurement, the procurement officer shall withhold the offers from public inspection. After award of a contract under the subsequent solicitation, the procurement officer shall make offers submitted in response to the cancelled solicitation available for public inspection except for information determined to be confidential pursuant to R19-3-503.

D. In the event of cancellation, the procurement officer shall promptly return any bid security provided by an offeror.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-516 renumbered to R4-37-513, new Section R4-37-516 renumbered from R4-37-519 and amended effective May 7, 1990 (Supp. 90-2). R19-3-516 recodified from R4-37-516 (Supp. 95-1). Former Section R19-3-516 renumbered to R19-3-518 and amended; new Section R19-3-516 renumbered from R19-3-514 and amended effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4).

Ariz. Admin. Code § R19-3-517 One Offer Received

A. If only one offer is received in response to a solicitation, the procurement officer shall review the offer and either:

1. Award the contract to the offeror and prepare a written determination that:

a. The price submitted is fair and reasonable under R19-3-550,

b. The offer is responsive, and

c. The offeror is responsible, or

2. Reject the offer and:

a. Resolicit for new offers,

b. Cancel the procurement, or

c. Use a different source selection method authorized under these rules.

B. If the procurement officer awards a contract for a solicitation under (A)(1), the award shall comply with R19-3-527 for a bid solicitation and R19-3-528 for a proposal solicitation.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-517 renumbered to R4-37-514, new Section R4-37-517 renumbered from R4-37-520 and amended effective May 7, 1990 (Supp. 90-2). R19-3-517 recodified from R4-37-517 (Supp. 95-1). Former Section R19-3-517 renumbered to R19-3-519 and amended; new Section R19-3-517 renumbered from R19-3-515 and amended effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Amended by final rulemaking at 19 A.A.R. 1641, effective August 4, 2013 (Supp. 13-2). Amended by final rulemaking at 22 A.A.R. 2966, effective 11/21/2016.

Ariz. Admin. Code § R19-3-518 Offer Mistakes Discovered After Offer Opening and Before Award

A. If an apparent mistake in an offer, relevant to the award determination, is discovered after opening and before award, the procurement officer shall contact the offeror for written confirmation of the offer. The procurement officer shall designate a time-frame within which the offeror shall either:

1. Confirm that no mistake was made and assert that the offer stands as submitted; or

2. Acknowledge that a mistake was made, and include all of the following in a written response:

a. Explanation of the mistake and any other relevant information,

b. A request for correction including the corrected offer or a request for withdrawal, and

c. The reasons why correction or withdrawal is consistent with fair competition and in the best interest of the Lottery.

B. An offeror who discovers a mistake in its offer may request correction or withdrawal in writing and shall include all of the following in the written request:

Explanation of the mistake and any other relevant information,

2. A request for correction including the corrected offer or a request for withdrawal, and

3. The reasons why correction or withdrawal is consistent with fair competition and in the best interest of the Lottery.

C. The procurement officer may permit an offeror to correct a mistake if the mistake involves a minor informality or if the mistake and the intended offer are evident in the uncorrected offer; for example, an error in the extension of unit prices. The procurement officer shall not permit a correction that is prejudicial to the Lottery or fair competition.

D. The procurement officer shall permit an offeror to furnish information called for in the solicitation but not supplied if the intended offer is evident and submittal of the information is not prejudicial to other offerors.

E. The procurement officer shall make a written determination of whether correction or withdrawal is permitted, based on whether the action is consistent with fair competition and in the best interest of the Lottery.

F. If the offeror fails to act under subsection (A) the offeror is considered nonresponsive and the procurement officer shall place a written determination that the offeror is nonresponsive in the procurement file.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-518 renumbered to R4-37-515, new Section R4-37-518 renumbered from R4-37-521 and amended effective May 7, 1990 (Supp. 90-2). R19-3-518 recodified from R4-37-518 (Supp. 95-1). Former Section R19-3-518 renumbered to R19-3-520 and amended; new Section R19-3-518 renumbered from R19-3-516 and amended effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Amended by final rulemaking at 19 A.A.R. 1641, effective August 4, 2013 (Supp. 13-2). Amended by final rulemaking at 22 A.A.R. 2966, effective 11/21/2016.

Ariz. Admin. Code § R19-3-519 Extension of Offer Acceptance Period

A. To extend the offer acceptance period, the procurement officer shall notify all offerors in writing of an extension and request written concurrence from each offeror.

B. To be eligible for a contract award, an offeror shall submit a written concurrence to the extension. The procurement officer shall reject an offer as nonresponsive if written concurrence is not provided as requested.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-519 renumbered to R4-37-516, new Section R4-37-519 renumbered from R4-37-522 and amended effective May 7, 1990 (Supp. 90-2). R19-3-519 recodified from R4-37-519 (Supp. 95-1). Former Section R19-3-519 renumbered to R19-3-521 and amended; new Section R19-3-519 renumbered from R19-3-517 and amended effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4).

Ariz. Admin. Code § R19-3-520 Determination of Not Susceptible for Award

A. The procurement officer may determine at any time during the evaluation period and before award that an offer is not susceptible for award. The procurement officer shall place a written determination, based on one or more of the following, in the procurement file:

1. The offer fails to substantially meet one or more of the mandatory requirements of the solicitation;

2. The offer fails to comply with any susceptibility criteria identified in the solicitation; or

3. The offer is not susceptible for award in comparison to other offers based on the criteria set forth in the solicitation. When there is doubt as to whether an offer is susceptible for award, the offer should be included for further consideration.

B. The procurement officer shall promptly notify the offeror in writing of the final determination that the offer is not susceptible for award, unless the procurement officer determines notification to the offeror would compromise the Lottery's ability to negotiate with other offerors.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-520 renumbered to R4-37-517, new Section R4-37-520 renumbered from R4-37-523 and amended effective May 7, 1990 (Supp. 90-2). R19-3-520 recodified from R4-37-520 (Supp. 95-1). Former Section R19-3-520 renumbered to R19-3-522 and amended; new Section R19-3-520 renumbered from R19-3-518 and amended effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Amended by final rulemaking at 19 A.A.R. 1641, effective August 4, 2013 (Supp. 13-2). Amended by final rulemaking at 22 A.A.R. 2966, effective 11/21/2016.

Ariz. Admin. Code § R19-3-521 Bid Evaluation

A. The procurement officer shall evaluate offers to determine which offer provides the lowest cost to the Lottery in accordance with any objectively measurable factors set forth in the solicitation.

B. The procurement officer may consider life cycle costs and application benefits when evaluating offers for the procurement of materials.

C. The procurement officer shall conduct an evaluation to determine whether an offeror is responsive, based upon the requirements set forth in the solicitation. The procurement officer shall reject as nonresponsive any offer that does not meet the solicitation requirements.

D. If there are two or more low, responsive offers from responsible offerors that are identical in price, the procurement officer shall make the award by drawing lots. If time permits, the procurement officer shall provide the offerors involved an opportunity to attend the drawing. The procurement officer shall ensure that the drawing is witnessed by at least one person other than the procurement officer.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-521 renumbered to R4-37-518, new Section R4-37-521 renumbered from R4-37-524 and amended effective May 7, 1990 (Supp. 90-2). R19-3-521 recodified from R4-37-521 (Supp. 95-1). Former Section R19-3-521 renumbered to R19-3-523 and amended; new Section R19-3-521 renumbered from R19-3-519 and amended effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Amended by final rulemaking at 19 A.A.R. 1641, effective August 4, 2013 (Supp. 13-2). Amended by final rulemaking at 22 A.A.R. 2966, effective 11/21/2016.

Ariz. Admin. Code § R19-3-522 Clarification of Proposal Offers

A. The purpose for clarifications is to provide for a greater mutual understanding of the offer. Clarifications are not negotiations and material changes to the request for proposal or offer shall not be made by clarification.

B. The procurement officer may request clarifications from offerors at any time after receipt of offers. Clarifications may be requested orally or in writing. If clarifications are requested orally, the offeror shall confirm the request in writing. A request for clarifications shall not be considered a determination that the offeror is susceptible for award.

C. The procurement officer shall retain any clarifications in the procurement file.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-522 renumbered to R4-37-519, new Section R4-37-522 renumbered from R4-37-525 and amended effective May 7, 1990 (Supp. 90-2). R19-3-522 recodified from R4-37-522 (Supp. 95-1). Former Section R19-3-522 renumbered to R19-3-524 and amended; new Section R19-3-522 renumbered from R19-3-520 and amended effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4).

Ariz. Admin. Code § R19-3-523 Proposal Negotiations with Responsible Offerors and Revisions of Offers

A. The procurement officer shall establish procedures and schedules for conducting negotiations. The procurement officer shall ensure there is no disclosure of one offeror's price or any information derived from competing offers to another offeror.

B. Negotiations may be conducted orally or in writing. If oral negotiations are conducted, the procurement officer shall confirm the negotiations in writing and provide the document to the offeror.

C. If negotiations are conducted, negotiations shall be conducted with all offerors determined to be reasonably susceptible for award. Offerors may revise offers based on negotiations provided that any revision is confirmed in writing.

D. The procurement officer may conduct negotiations with responsible offerors to improve offers in such areas as cost, price, specifications, performance, or terms, to achieve best value for the Lottery based on the requirements and the evaluation factors set forth in the solicitation.

E. Responsible offerors determined to be susceptible for award, with which negotiations have been held, may revise their offer in writing during negotiations.

F. An offeror may withdraw an offer at any time before the best and final offer due date and time by submitting a written request to the procurement officer.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-523 renumbered to R4-37-520, new Section R4-37-523 renumbered from R4-37-526 and amended effective May 7, 1990 (Supp. 90-2). R19-3-523 recodified from R4-37-523 (Supp. 95-1). Former Section R19-3-523 renumbered to R19-3-525 and amended; new Section R19-3-523 renumbered from R19-3-521 and amended effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Amended by final rulemaking at 19 A.A.R. 1641, effective August 4, 2013 (Supp. 13-2). Amended by final rulemaking at 22 A.A.R. 2966, effective 11/21/2016.

Ariz. Admin. Code § R19-3-524 Offer Revisions and Best and Final Offers

A. The procurement officer may request written revisions to an offer. The procurement officer shall include in the written request:

1. The date, time, and place for submission of offer revisions; and

2. A statement that if offerors do not submit a written notice of withdrawal or a written offer revision, their immediate previous written offer will be accepted as their final offer.

B. The procurement officer shall request best and final offers from any offeror with whom negotiations have been conducted, however it is not mandatory to conduct negotiations prior to requesting a best and final offer. The procurement officer shall include in the written request:

1. The date, time, and place for submission of best and final offer; and

2. A statement that if offerors do not submit a written best and final offer, their immediate previous written offer will be accepted as their best and final offer.

B.C. The procurement officer shall request written best and final offers only once, unless the procurement officer makes a written determination that it is advantageous to the Lottery to conduct further negotiations or change the Lottery's requirements.

C.D. If an apparent mistake, relevant to the award determination, is discovered after opening of best and final offers, the procurement officer shall contact the offeror for written confirmation. The procurement officer shall designate a time-frame within which the offeror shall either:

Confirm that no mistake was made and assert that the offer stands as submitted; or

2. Acknowledge that a mistake was made, and include the following in a written response:

a. Explanation of the mistake and any other relevant information,

b. A request for correction including the corrected offer or a request for withdrawal, and

c. The reasons why correction or withdrawal is consistent with fair competition and in the best interest of the Lottery.

D.E. An offeror who discovers a mistake in their best and final offer may request withdrawal or correction in writing, and shall include the following in the written request:

1. Explanation of the mistake and any other relevant information,

2. A request for correction including the corrected offer or a request for withdrawal, and

3. The reasons why correction or withdrawal is consistent with fair competition and in the best interest of the Lottery.

E. F.In response to a request made under subsections (D) or (E), the procurement officer shall make a written determination of whether correction or withdrawal will be allowed based on whether the action is consistent with fair competition and in the best interest of the Lottery. If an offeror does not provide written confirmation of the best and final offer, the procurement officer shall make a written determination that the most recent written best and final offer submitted is the final best and final offer.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-524 renumbered to R4-37-521, new Section R4-37-524 renumbered from R4-37-527 and amended effective May 7, 1990 (Supp. 90-2). R19-3-524 recodified from R4-37-524 (Supp. 95-1). Former Section R19-3-524 renumbered to R19-3-526 and amended; new Section R19-3-524 renumbered from R19-3-522 and amended effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Amended by final rulemaking at 19 A.A.R. 1641, effective August 4, 2013 (Supp. 13-2). Amended by final rulemaking at 22 A.A.R. 2966, effective 11/21/2016.

Ariz. Admin. Code § R19-3-525 Evaluation of Proposal Offers

A. The procurement officer shall evaluate offers and best and final offers based on the evaluation criteria contained in the request for proposals. The procurement officer shall not modify evaluation criteria or their relative order of importance after offer due date and time.

B. The procurement officer may appoint an evaluation committee to assist in the evaluation of offers. If offers are evaluated by an evaluation committee, the evaluation committee shall prepare an evaluation report for the procurement officer. This evaluation report shall supersede all previous draft evaluations or evaluation reports. The procurement officer may:

1. Accept or reject the findings of the evaluation committee,

Request additional information from the evaluation committee, or

3. Replace the evaluation committee.

C. The procurement officer shall prepare an award determination and place the determination, including any evaluation report or other supporting documentation, in the procurement file.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-525 renumbered to R4-37-522, new Section R4-37-525 renumbered from R4-37-522 and amended effective May 7, 1990 (Supp. 90-2). R19-3-525 recodified from R4-37-525 (Supp. 95-1). Former Section R19-3-525 renumbered to R19-3-527 and amended; new Section R19-3-525 renumbered from R19-3-523 and amended effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Amended by final rulemaking at 19 A.A.R. 1641, effective August 4, 2013 (Supp. 13-2). Amended by final rulemaking at 22 A.A.R. 2966, effective 11/21/2016.

Ariz. Admin. Code § R19-3-526 Responsibility Determinations

A. The procurement officer shall determine before an award whether an offeror is responsible or nonresponsible.

B. The procurement officer shall consider the following factors before determining that an offeror is responsible or nonresponsible:

1. The offeror's financial, business, personnel, or other resources, such as subcontractors;

2. The offeror's record of performance and integrity;

3. Whether the offeror has been debarred or suspended;

Whether the offeror is legally qualified to contract with the Lottery;

5. Whether the offeror promptly supplied all requested information concerning its responsibility; and

6. Whether the offeror meets the responsibility criteria specified in the solicitation.

C. If the procurement officer determines an offeror is nonresponsible, the procurement officer shall promptly send a determination to the offeror stating the basis for the determination, except when notification to the offeror would compromise the Lottery's ability to negotiate with other offerors. The procurement officer shall file a copy of the determination in the procurement file.

D. The procurement officer shall only disclose responsibility information furnished by an offeror in accordance with A.R.S. § 41-2540.

E. For the offeror awarded a contract, the procurement officer's signature on the contract constitutes a determination that the offeror is responsible.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-526 renumbered to R4-37-523, new Section R4-37-526 renumbered from R4-37-529 and amended effective May 7, 1990 (Supp. 90-2). R19-3-526 recodified from R4-37-526 (Supp. 95-1). Former Section R19-3-526 renumbered to R19-3-528 and amended; new Section R19-3-526 renumbered from R19-3-524 and amended effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Amended by final rulemaking at 22 A.A.R. 2966, effective 11/21/2016.

Ariz. Admin. Code § R19-3-527 Bid Contract Award

A. The procurement officer shall award the contract to the lowest responsible and responsive offeror whose offer conforms in all material respects to the requirements and criteria set forth in the solicitation. Unless otherwise provided in the solicitation, an award may be made for an individual line item, any group of line items, or all line items.

B. The procurement officer shall keep a record showing the basis for determining the successful offeror or offerors in the procurement file.

C. The procurement officer shall notify the Director and the Lottery Commission of an award. The award will be final and binding unless rejected by the Lottery Commission at a meeting held within 14 calendar days after the award is communicated to the Commissioners. The procurement officer shall send notice of the meeting to all offerors.

D. After an award becomes effective and binding, the procurement officer shall return any bid security provided by the offeror.

E. Within 3 days after an award is effective and binding, the procurement officer shall make the procurement file, including all offers, available for public inspection, redacting information that is confidential under R19-3-503.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-527 renumbered to R4-37-524, new Section R4-37-527 renumbered from R4-37-530 effective May 7, 1990 (Supp. 90-2). R19-3-527 recodified from R4-37-527 (Supp. 95-1). Former Section R19-3-527 renumbered to R19-3-529 and amended; new Section R19-3-527 renumbered from R19-3-525 and amended effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Amended by final rulemaking at 22 A.A.R. 2966, effective 11/21/2016.

Ariz. Admin. Code § R19-3-528 Proposal Contract Award

A. The procurement officer shall award the contract to the responsible offeror whose offer is determined to be most advantageous to the Lottery based on the evaluation factors set forth in the solicitation. The procurement officer shall make a written determination explaining the basis for the award and place it in the procurement file.

B. Before awarding any cost reimbursement contract, the procurement officer shall determine in writing that:

1. The offeror's accounting system will permit timely development of all necessary cost data in the form required by the specific contract type contemplated, and

2. It is adequate to allocate costs under R19-3-550 through R19-3-553 .

C.B. The procurement officer shall notify the Director and the Lottery Commission of an award. The award will be final and binding unless rejected by the Lottery Commission at a meeting held within 14 calendar days after the award is communicated to the Commissioners. The procurement officer shall send notice of the meeting to all offerors.

D.C. If the procurement officer makes a written determination that it is in the best interest of the Lottery that the award not be made public until reviewed by the Lottery Commission, the Director may authorize a meeting of the Lottery Commission to be held for consideration of the award.

1. The Director shall provide notice of the meeting in compliance with Open Meeting Law, including notice of an executive session to provide information concerning the award and the procurement officer's evaluation of the offers.

2. The Lottery Commission shall not take action in the executive session.

In open meeting the Lottery Commission may vote to approve or reject the award. The Lottery Commission may also direct that it will reject the award unless further negotiations occur regarding specified issues. If further negotiations are directed, the procurement officer shall withhold the recommended award from public inspection.

E.D. The procurement officer shall notify all offerors of an award that has become effective and binding.

F.E. After an award becomes effective and binding, the procurement officer shall return any offer security provided by the offeror.

G.F. Within 3 days after an award is effective and binding, the procurement officer shall make the procurement file, including all offers, available for public inspection, redacting information that is confidential under R19-3-503.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-528 renumbered to R4-37-525, new Section R4-37-528 renumbered from R4-37-531 and amended effective May 7, 1990 (Supp. 90-2). R19-3-528 recodified from R4-37-528 (Supp. 95-1). Former Section R19-3-528 renumbered to R19-3-530 and amended; new Section R19-3-528 renumbered from R19-3-526 and amended effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Amended by final rulemaking at 19 A.A.R. 1641, effective August 4, 2013 (Supp. 13-2). Amended by final rulemaking at 22 A.A.R. 2966, effective 11/21/2016.

Ariz. Admin. Code § R19-3-529 Mistakes Discovered after Bid Award

A. If a mistake in the offer is discovered after the award, the offeror may request withdrawal or correction in writing and shall include all of the following in the written request:

1. Explanation of the mistake and any other relevant information,

2. A request for correction including the corrected offer or a request for withdrawal, and

3. The reasons why correction or withdrawal is consistent with fair competition and in the best interest of the Lottery.

B. Based on the considerations of fair competition and the best interest of the Lottery, the procurement officer may:

1. Allow correction of the mistake, if the resulting dollar amount of the correction is less than the next lowest offer;

Cancel all or part of the award; or

3. Deny correction or withdrawal.

C. After cancellation of all or part of an award, if the offer acceptance period has not expired, the procurement officer may award all or part of the contract to the next lowest responsible and responsive offeror, based on the considerations of fair competition and the best interest of the Lottery.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-529 renumbered to R4-37-526, new Section R4-37-529 renumbered from R4-37-532 and amended effective May 7, 1990 (Supp. 90-2). R19-3-529 recodified from R4-37-529 (Supp. 95-1). Former Section R19-3-529 renumbered to R19-3-531 and amended; new Section R19-3-529 renumbered from R19-3-527 and amended effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Amended by final rulemaking at 19 A.A.R. 1641, effective August 4, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-3-530 Mistakes Discovered after Proposal Award

A. If a mistake in the offer is discovered after the award, the offeror may request correction or withdrawal in writing, and shall include all of the following in the written request:

1. Explanation of the mistake and any other relevant information,

2. A request for correction including the corrected offer or a request for withdrawal, and

3. The reasons why correction or withdrawal is consistent with fair competition and in the best interest of the Lottery.

B. Based on the considerations of fair competition and the best interest of the Lottery, the procurement officer may:

1. Allow correction of the mistake,

Cancel all or part of the award, or

3. Deny correction or withdrawal.

C. After cancellation of all or part of an award, if the offer acceptance period has not expired, the procurement officer may award all or part of the contract to the next responsible offeror whose offer is determined to be the next most advantageous to the Lottery according to the evaluation factors contained in the solicitation.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-530 renumbered to R4-37-527, new Section R4-37-530 renumbered from R4-37-533 and amended effective May 7, 1990 (Supp. 90-2). R19-3-530 recodified from R4-37-530 (Supp. 95-1). Former Section R19-3-530 renumbered to R19-3-533 and amended; new Section R19-3-530 renumbered from R19-3-528 and amended effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Amended by final rulemaking at 19 A.A.R. 1641, effective August 4, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-3-531 Procurements not Exceeding the Amount Prescribed in A.R.S. Section 41-2535

For purchases not exceeding the amount prescribed in A.R.S. § 41-2535, the procurement officer shall issue a request for quotation under R19-3-532 unless any of the following apply:

The purchase can be made from a state or agency contract,

2. The purchase can be made from a set-aside organization as established in A.R.S. § 41-2636,

3. The purchase is not expected to exceed $10,000.00, or

4. The purchase is made as a sole-source procurement, or

5.4. The procurement officer makes a written determination that competition is not practicable under the circumstances. The purchase shall be made with as much competition as is practicable under the circumstances.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-531 renumbered to R4-37-528, new Section R4-37-531 renumbered from R4-37-534 and amended effective May 7, 1990 (Supp. 90-2). R19-3-531 recodified from R4-37-531 (Supp. 95-1). Former Section R19-3-531 renumbered to R19-3-535 and amended; new Section R19-3-531 renumbered from R19-3-529 and amended effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Amended by final rulemaking at 19 A.A.R. 1641, effective August 4, 2013 (Supp. 13-2). Amended by final rulemaking at 22 A.A.R. 2966, effective 11/21/2016.

Ariz. Admin. Code § R19-3-532 Solicitation - Request for Quotation

A. A request for quotation shall be issued for purchases estimated to exceed $10,000 but less than that specified in A.R.S. § 41-2535. The procurement officer shall include the following in the solicitation:

1. Offer submission requirements, including offer due date and time, where offers will be received, and offer acceptance period;

2. Any purchase description, specifications, delivery or performance schedule, and inspection and acceptance requirements;

3. The minimum information that the offer shall contain;

4. Any evaluation factors;

5. Whether negotiations may be held;

6. Any contract options including renewal or extension;

The uniform terms and conditions by text or reference; and

8. Any other terms, conditions, or instructions specific to the procurement.

B. The procurement officer shall issue the request for quotation by distributing the request for quotation to a minimum of three small businesses registered on the prospective suppliers list.

B.C. The request for quotation shall include a statement that only a small business, as defined in R19-3-501, shall be awarded a contract, unless any of the following apply:

1. The purchase has been unsuccessfully competed under Subsection (B) of this Section, including failure to obtain fair and reasonable prices;

2. The procurement officer has made a written determination that less than three small businesses are registered on the prospective suppliers list, or

2.3. The procurement officer has made a written determination prior to issuing a request for quotation that restricting the procurement to small business is not practical under the circumstances.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-532 renumbered to R4-37-529, new Section R4-37-532 renumbered from R4-37-535 and amended effective May 7, 1990 (Supp. 90-2). R19-3-532 recodified from R4-37-532 (Supp. 95-1). Former Section R19-3-532 renumbered to R19-3-536 and amended; new Section adopted effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Amended by final rulemaking at 22 A.A.R. 2966, effective 11/21/2016.

Ariz. Admin. Code § R19-3-533 [Repealed]

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-533 renumbered to R4-37-530, new Section R4-37-533 renumbered from R4-37-536 and amended effective May 7, 1990 (Supp. 90-2). R19-3-533 recodified from R4-37-533 (Supp. 95-1). Former Section R19-3-533 renumbered to R19-3-537 and amended; new Section R19-3-533 renumbered from R19-3-530 and amended effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Amended by final rulemaking at 19 A.A.R. 1641, effective August 4, 2013 (Supp. 13-2). Repealed by final rulemaking at 22 A.A.R. 2966, effective 11/21/2016.

Ariz. Admin. Code § R19-3-534 Quotation Contract Award

A. If only one responsive offer is received, the procurement officer shall determine if the price is fair and reasonable, and in the best interest of the Lottery to award a contract, and place the determination in the procurement file. If time permits, the procurement officer may initiate a second request for quotation if it is reasonable to believe that additional responses will be received.

B. The procurement officer shall award a contract to the small business determined to be most advantageous to the Lottery in accordance with any evaluation factors identified in the request for quotation.

C. The procurement officer shall notify the Director and the Lottery Commission of an award. The award will be final and binding unless rejected by the Lottery Commission at a meeting held within 14 calendar days after the award is communicated to the Commissioners. The procurement officer shall send notice of the meeting to all offerors.

D. The procurement officer shall make the procurement file available to the public on the date the contract award becomes effective and binding.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-534 renumbered to R4-37-531, new Section R4-37-534 renumbered from R4-37-538 and amended effective May 7, 1990 (Supp. 90-2). R19-3-534 recodified from R4-37-534 (Supp. 95-1). Former Section R19-3-534 renumbered to R19-3-538 and amended; new Section R19-3-534 adopted December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Amended by final rulemaking at 19 A.A.R. 1641, effective August 4, 2013 (Supp. 13-2). Amended by final rulemaking at 22 A.A.R. 2966, effective 11/21/2016.

Ariz. Admin. Code § R19-3-535 Sole Source Procurements

A. For the purposes of this Section, the term "sole-source procurement" means a material or service procured without competition when:

1. There is only a single source for the material or service, or

2. No reasonable alternative source exists.

B. This Section applies only to sole source procurements, estimated to exceed the amount prescribed in A.R.S. § 41-2535.

B.C. The procurement officer shall make a written determination that includes the following information:

1. A description of the procurement need and the reason why there is only a single source available or no reasonable alternative exists,

2. The name of the proposed supplier,

3. The duration and estimated total dollar value of the proposed procurement,

4. Documentation that the price submitted is fair and reasonable pursuant to R19-3-550, and

5. A description of efforts made to seek other sources.

C.D. The procurement officer shall post the request on the Lottery website and send notice to registered vendors on the state's electronic system to invite comments on the sole-source request for three working days. Following this period, the procurement officer shall either:

1. Issue a written determination with any conditions or restrictions, or

2. Retract the determination if input or information received shows that more than one source is available or a reasonable alternative source exists for the procurement need.

D.E. If the sole-source procurement is determined, the procurement officer shall negotiate a contract advantageous to the Lottery.

E.F. The procurement officer shall notify the Director and the Lottery Commission of a contract award. The award will be final and binding unless rejected by the Lottery Commission at a meeting held within 14 calendar days after the award is communicated to the Commissioners. The procurement officer shall send notice of the meeting to the sole source.

F.G. The procurement officer shall keep a record of all sole-source procurements.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-535 renumbered to R4-37-532, new Section R4-37-535 renumbered from R4-37-539 and amended effective May 7, 1990 (Supp. 90-2). R19-3-535 recodified from R4-37-535 (Supp. 95-1). Former Section R19-3-535 renumbered to Section R19-3-339 and amended; new Section R19-3-535 renumbered from R19-3-531 and amended, effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Amended by final rulemaking at 19 A.A.R. 1641, effective August 4, 2013 (Supp. 13-2). Amended by final rulemaking at 22-2966, effective 11/21/2016.

Ariz. Admin. Code § R19-3-536 Emergency Procurements

A. For the purposes of this Section, the term "emergency" means any condition creating an immediate and serious need for materials, services, or construction in which the Lottery's best interests are not met through the use of other source-selection methods. The condition must seriously threaten the functioning of the Lottery, the preservation or protection of property, or the health or safety of a person.

B. This Section applies to only emergency procurements, estimated to exceed the amount prescribed in A.R.S. § 41-2535. The procurement officer may procure a material or service without competition when there is an emergency by complying with this Section.

C. A Lottery employee with the approval of the immediate supervisor or the Director may proceed with an emergency procurement without approval from the procurement officer if the emergency necessitates immediate response and it is impracticable to contact the procurement officer. The supervisor or Director shall submit a written confirmation of the emergency procurement to the procurement officer within five working days of the emergency.

D. An emergency procurement shall be limited to such actions necessary to address the emergency.

E. An emergency procurement shall employ maximum competition, given the circumstances, to protect the interests of the Lottery.

F. The procurement officer shall keep a record of all emergency procurements.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-536 renumbered to R4-37-533, new Section R4-37-536 renumbered from R4-37-540 and amended effective May 7, 1990 (Supp. 90-2). R19-3-536 recodified from R4-37-536 (Supp. 95-1). Former Section R19-3-536 renumbered to Section R19-3-541 and amended; new Section R19-3-536 renumbered from R19-3-532 and amended, effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4).

Ariz. Admin. Code § R19-3-537 Competition Impracticable Procurements

A. For the purposes of this Section, "competition impracticable" means a procurement requirement exists which makes compliance with A.R.S. § 5-559 and these rules impracticable, unnecessary, or contrary to the public interest, but which is not an emergency under R19-3-536 . Procurements with a documented lack of available vendors in the marketplace and which require an open and continuous availability of offerors may be procured by this method.

B. The procurement officer shall make a written determination that includes the following information:

1. An explanation of the competition impracticable need and the unusual or unique situation that makes compliance with A.R.S. § 5-559 and these rules impracticable, unnecessary, or contrary to the public interest;

2. A definition of the proposed procurement process to be utilized and an explanation of how this process will foster as much competition as is practicable;

3. An explanation of why the proposed procurement process is advantageous to the Lottery; and

4. The scope, duration, and estimated total dollar value of the procurement need.

C. The procurement officer shall keep a record of all competition impracticable procurements.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-537 repealed, new Section R4-37-537 renumbered from R4-37-541 and amended effective May 7, 1990 (Supp. 90-2). R19-3-537 recodified from R4-37-537 (Supp. 95-1). Former Section R19-3-537 renumbered to R19-3-542 and amended; new Section R19-3-537 renumbered from R19-3-533 and amended effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Pursuant to authority of A.R.S. § 41-1011(C), Laws 2010, 6th Special Session, Ch. 2, authorizes the transfer of A.R.S. citations. Therefore the A.R.S. citations in subsections (A) and (B)(1) were updated. Agency request filed September 24, 2012, Office File No. M12-343 (Supp. 12-3). Amended by final rulemaking at 19 A.A.R. 1641, effective August 4, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-3-538 Request for Information

The procurement officer may issue a request for information to obtain price, delivery, technical information or capabilities for planning purposes.

1. Responses to a request for information are not offers and cannot be accepted to form a binding contract.

2. Information contained in a response to a request for information shall be considered confidential until the procurement process is concluded or two years, whichever occurs first unless authorized by the procurement officer.

3. There is no required format to be used for requests for information.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-538 renumbered to R4-37-534, new Section R4-37-538 renumbered from R4-37-542 and amended effective May 7, 1990 (Supp. 90-2). R19-3-538 recodified from R4-37-538 (Supp. 95-1). Former Section R19-3-538 renumbered to R19-3-543 and amended; new Section R19-3-538 renumbered from R19-3-534 and amended effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Amended by final rulemaking at 19 A.A.R. 1641, effective August 4, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-3-539 Demonstration Projects

A. The procurement officer may award a contract for a demonstration project. The written determination shall contain the following:

1. Name of the contractor;

2. Description of the project, including unique and innovative features of the project;

3. Statement and explanation that the project is in the best interest of the Lottery;

4. Duration of the project; and

5. Proposed contract terms and conditions.

B. Demonstration projects shall be provided by the contractor at no cost and the Lottery shall not be obligated to purchase or lease the services or materials from the contractor.

C. The procurement officer may purchase or lease from the demonstration contractor within 12 months after the demonstration project begins or within 12 months after the demonstration project ends by making a written determination that contains the following:

1. Name of the contractor;

2. Description of the project, including unique and innovative features of the project;

3. Statement and explanation that lease or purchase is in the best interest of the Lottery;

4. Cost to the Lottery;

5. Duration of the proposed contract; and

6. Proposed contract terms and conditions.

D. The term of the contract resulting from a demonstration project shall not exceed two years.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-539 renumbered to R4-37-535, new Section R4-37-539 renumbered from R4-37-543 effective May 7, 1990 (Supp. 90-2). R19-3-539 recodified from R4-37-539 (Supp. 95-1). Former Section R19-3-539 renumbered to R19-3-547 and amended; new Section R19-3-539 renumbered from R19-3-535 and amended effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Amended by final rulemaking at 19 A.A.R. 1641, effective August 4, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-3-540 General Services Administration Contracts

A. The procurement officer may purchase products or services using General Services Administration (GSA) schedules or contracts under the following conditions:

Use of the GSA contract or schedule is cost effective and in the best interest of the Lottery,

2. Price is equal to or less than the contractor's current GSA price,

3. Price is fair and reasonable,

4. Contractor is willing to offer GSA pricing and terms to the Lottery,

Comparable products or services are not available under a state or agency contract,

6. Comparable products or services are not restricted under a set-aside contract, and

7. Contractor accepts required Lottery contract terms and conditions.

B. The procurement officer shall make a written determination that use of the GSA contract or schedule is in the best interest of the Lottery. The determination shall contain the following:

1. Name of the contractor;

2. GSA contract or schedule number;

3. Procurement description;

4. Analysis of price, quality, and other relevant factors; and

5. Statement that the price is fair and reasonable.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-540 renumbered to R4-37-536, new Section R4-37-540 renumbered from R4-37-544 and amended effective May 7, 1990 (Supp. 90-2). R19-3-540 recodified from R4-37-540 (Supp. 95-1). Former Section R19-3-540 renumbered to R19-3-549 and amended; new Section R19-3-540 adopted effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Amended by final rulemaking at 19 A.A.R. 1641, effective August 4, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-3-541 Contract Clauses

The procurement officer shall include in solicitations and contracts all contract clauses necessary to ensure the Lottery's interests are addressed.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-541 renumbered to R4-37-538, new Section R4-37-541 renumbered from R4-37-545 and amended effective May 7, 1990 (Supp. 90-2). R19-3-541 recodified from R4-37-541 (Supp. 95-1). Former Section R19-3-541 renumbered to R19-3-551 and amended; new Section R19-3-541 renumbered from R19-3-536 and amended effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4).

Ariz. Admin. Code § R19-3-542 Assignment of Rights and Duties

A contractor shall not assign or transfer the rights or duties of a Lottery contract without the written consent of the Director.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-542 renumbered to R4-37-539, new Section R4-37-542 renumbered from R4-37-546 and amended effective May 7, 1990 (Supp. 90-2). R19-3-542 recodified from R4-37-542 (Supp. 95-1). Former Section R19-3-542 repealed; new Section R19-3-542 renumbered from R19-3-537 and amended effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4).

Ariz. Admin. Code § R19-3-543 Change of Name

If a contractor requests to change the name in which it holds a Lottery contract, the procurement officer may, upon receipt of a document indicating name change and any other information requested by the procurement officer in the best interest of the Lottery concerning the name change, enter into a written amendment with the contractor to effect the name change. The amendment shall provide that no other terms and conditions of the contract are changed.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-543 renumbered to R4-37-540, new Section R4-37-543 renumbered from R4-37-547 and amended effective May 7, 1990 (Supp. 90-2). R19-3-543 recodified from R4-37-543 (Supp. 95-1). Former Section R19-3-543 repealed; new Section R19-3-543 renumbered from R19-3-538 and amended effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4).

Ariz. Admin. Code § R19-3-544 Contract Change Orders and Amendments

A. The procurement officer may extend or authorize options in a contract provided the price of the extension or option was evaluated under the contractor's original offer.

B. Any contract change order or amendment or aggregate change orders or amendments of a contract not covered under subsection (A) that exceeds 25% of the original contract amount may be executed only if approved by the budget manager and the procurement officer determines in writing that the change order or amendment is advantageous to the Lottery and the price is determined fair and reasonable pursuant to R19-3-550.

C. The procurement officer may, in situations in which time or economic considerations preclude resolicitation, negotiate a reduction to the contract, including scope, price, and contract requirements in accordance with A.R.S. § 41-2537.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R4-37-544 renumbered to R4-37-541, new Section R4-37-544 renumbered from R4-37-548 and amended effective May 7, 1990 (Supp. 90-2). R19-3-544 recodified from R4-37-544 (Supp. 95-1). Former Section R19-3-544 repealed; new Section R19-3-544 adopted effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Amended by final rulemaking at 19 A.A.R. 1641, effective August 4, 2013 (Supp. 13-2). Amended by final rulemaking at 22 A.A.R. 2966, effective 11/21/2016.

Ariz. Admin. Code § R19-3-545 Multi-term Contracts

A. Unless otherwise provided by law, a contract may be entered into for a period of time up to five years, if the term of the contract and conditions of renewal or extension, if any, are included in the solicitation and monies are available for the first fiscal period at the time of contracting.

B. A contract may be entered into for a period exceeding five years if the procurement officer makes a written determination that such a contract would be advantageous to the Lottery and the Lottery Commission pre-approves the extended contract period. The written determination shall include:

1. The initial and renewal option periods for the contract,

2. Documentation that the estimated requirements are reasonable and continuing, and

3. Documentation that such a contract will serve the best interests of the Lottery by encouraging effective competition or otherwise promoting economies in Lottery procurement.

C. The procurement officer shall include in all multi-term contracts a clause specifying that the contract shall be cancelled if monies are not appropriated or otherwise made available to support the continuation of performance in a subsequent fiscal year. If the contract is cancelled under this Section, the contractor may only be reimbursed for the reasonable value of any nonrecurring costs incurred but not amortized in the price of the materials or services delivered under the contract or which are otherwise not recoverable.

History

• Adopted as an emergency effective June 5, 1985, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 85-3). Adopted as a permanent rule effective August 29, 1985 (Supp. 85-4). Former Section R19-3-545 renumbered to R19-3-541, new Section R4-37-545 renumbered from R4-37-549 and amended effective May 7, 1990 (Supp. 90-2). R19-3-545 recodified from R4-37-545 (Supp. 95-1). Former Section R19-3-545 renumbered to R19-3-552 and amended; new Section R19-3-545 adopted effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Amended by final rulemaking at 19 A.A.R. 1641, effective August 4, 2013 (Supp. 13-2). Amended by final rulemaking at 22 A.A.R. 2966, effective 11/21/2016.

Ariz. Admin. Code § R19-3-546 Terms and Conditions

A. The procurement officer shall use the uniform terms and conditions published by the state procurement administrator for state contracts.

B. The procurement officer may make changes to uniform terms and conditions by making a written determination that it is in the best interest of the Lottery and does not conflict with any statutory requirements, provided that the procurement officer gives notice to the state procurement administrator of those changes.

History

• Renumbered to Section R4-37-542 effective May 7, 1990 (Supp. 90-2). R19-3-546 recodified from R4-37-546 (Supp. 95-1). New Section adopted effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Amended by final rulemaking at 22 A.A.R. 2966, effective 11/21/2016.

Ariz. Admin. Code § R19-3-547 Mandatory Statewide Contracts

The Lottery shall use existing Arizona state contracts to satisfy the need for materials and services covered under such contracts for all non-Lottery specific materials and services, unless an off-contract request is approved by the state procurement administrator.

History

• Renumbered to Section R4-37-543 effective May 7, 1990 (Supp. 90-2). R19-3-547 recodified from R4-37-547 (Supp. 95-1). New Section R19-3-547 renumbered from R19-3-339 and amended effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Section R19-3-547 renumbered to R19-3-550 ; new Section R19-3-547 made by final rulemaking at 19 A.A.R. 1641, effective August 4, 2013 (Supp. 13-2). Amended by final rulemaking at 22 A.A.R. 2966, effective 11/21/2016.

Ariz. Admin. Code § R19-3-548 Multiple Source Contracts

Multiple award contracts shall be limited to the least number of suppliers necessary to meet the requirements of the Lottery, unless a written determination is made by the procurement officer providing otherwise.

History

• Renumbered to Section R4-37-544 effective May 7, 1990 (Supp. 90-2). R19-3-548 recodified from R4-37-548 (Supp. 95-1). New Section adopted effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Section R19-3-548 renumbered to R19-3-551 ; new Section R19-3-548 made by final rulemaking at 19 A.A.R. 1641, effective August 4, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-3-549 Conflict of Interest

A. A person preparing or assisting in the preparation of specifications, plans, or scopes of work shall not receive any direct benefit from the utilization of those specifications, plans, or scopes of work.

B. The procurement officer may waive the restriction set forth in subsection (A) if the procurement officer determines in writing that the rule's application would not be in the Lottery's best interest. The determination shall state the specific reasons that the restriction in subsection (A) has been waived. If the procurement officer is the individual with the restriction, the Director may waive the restriction set forth in subsection (A) if the Director determines in writing that the rule's application would not be in the Lottery's best interest. If the Director is the person with the restriction, the restriction may be waived by a determination of the office of the Governor.

History

• Renumbered to Section R4-37-545 effective May 7, 1990 (Supp. 90-2). R19-3-549 recodified from R4-37-549 (Supp. 95-1). R19-3-549 renumbered from R19-3-540 and amended effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Section R19-3-549 renumbered to R19-3-552 ; new Section R19-3-549 made by final rulemaking at 19 A.A.R. 1641, effective August 4, 2013 (Supp. 13-2). Amended by final rulemaking at 22 A.A.R. 2966, effective 11/21/2016.

Ariz. Admin. Code § R19-3-550 Determination of Fair and Reasonable Price

A. For contracts or contract modifications that exceed $100,000, the procurement officer shall determine in writing that the price is fair and reasonable only when one of the following requirements is met:

1. The contract or modification is based on adequate price competition;

Price is supported by an established catalog or market prices;

3. Price is set by law or rule; or

4. Price is supported by relevant, historical price data.

B. The procurement officer shall request the submission of cost or pricing data from the offeror or contractor when:

1. The procurement officer cannot determine the price is fair and reasonable based on the criteria in subsection (A), or

2. The procurement officer determines in writing that it is in the best interest of the Lottery regardless of the amount of the contract or contract modification.

History

• Adopted effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Section R19-3-550 renumbered to R19-3-553 ; new Section R19-3-550 renumbered from R19-3-547 and amended by final rulemaking at 19 A.A.R. 1641, effective August 4, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-3-551 Submission and Certification of Cost or Pricing Data

A. The offeror or contractor shall submit certified cost or pricing data in the manner, and within the time-frames, prescribed by the procurement officer.

B. The offeror or contractor shall keep all cost or pricing data submitted current until the negotiations are concluded.

C. The offeror or contractor shall certify cost or pricing data by including a signed statement with the submission that all data is accurate, complete, and current to the best of the offeror's or contractor's knowledge and belief, as of a date mutually determined with the procurement officer.

History

• Section R19-3-551 renumbered from R19-3-541 and amended effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Section R19-3-551 renumbered to R19-3-554 ; new Section R19-3-551 renumbered from R19-3-548 by final rulemaking at 19 A.A.R. 1641, effective August 4, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-3-552 Refusal to Submit Cost or Pricing Data

A. If an offeror fails to submit cost or pricing data in the required form and within the time-frames required, the procurement officer may reject the offer.

B. If a contractor fails to submit data to support a contract modification in the form required and within the time-frames required, the procurement officer may:

Reject the contract modification; or

2. Set the amount of the contract modification subject to the contractor's rights under A.R.S. Title 41, Chapter 6, Article 10.

History

• Section R19-3-552 renumbered from R19-3-545 and amended effective December 16, 1997 (Supp. 97-4). Section repealed; new Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Section R19-3-552 renumbered to R19-3-555 ; new Section R19-3-552 renumbered from R19-3-549 by final rulemaking at 19 A.A.R. 1641, effective August 4, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-3-553 Defective Cost or Pricing Data

A. The procurement officer may reduce the contract price if, upon written determination, the cost or pricing data is defective.

B. The procurement officer shall reduce the contract price in the amount of the defect plus related overhead and profit or fee, if the defective data was used in awarding the contract or contract modification.

C. The offeror or contractor may appeal any dispute regarding the existence of defective cost or pricing data or the amount of an adjustment due to defective cost or pricing data as a contract claim under R19-3-565 through R19-3-567 . The price, as adjusted by the procurement officer, shall remain in effect until any claim is settled or resolved under A.R.S. Title 41, Chapter 6, Article 10.

History

• New Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Section R19-3-553 renumbered to R19-3-556 ; new Section R19-3-553 renumbered from R19-3-550 and amended by final rulemaking at 19 A.A.R. 1641, effective August 4, 2013 (Supp. 13-2). Amended by final rulemaking at 22 A.A.R. 2966, effective 11/21/2016.

Ariz. Admin. Code § R19-3-554 Protest of Solicitations and Contract Awards

A. Any interested party may protest a solicitation, a determination of not susceptible for award, or the award of a contract.

B. The interested party shall file the protest in writing with the procurement officer and shall include the following information:

1. The name, address, and telephone number of the interested party;

2. The signature of the interested party or the interested party's representative;

3. Identification of the solicitation or contract number;

4. A detailed statement of the legal and factual grounds of the protest including copies of relevant documents; and

5. The form of relief requested.

C. If the protest is based upon alleged improprieties in a solicitation that are apparent before the offer due date and time, the interested party shall file the protest before the offer due date and time.

D. In cases other than those covered in subsection (C), the interested party shall file the protest within 10 days after the procurement officer makes the procurement file available for public inspection.

E. The interested party may submit a written request to the procurement officer for an extension of the time limit for protest filing set forth in subsection (D). The written request shall be submitted before the expiration of the time limit set forth in subsection (D) and shall set forth good cause as to the specific action or inaction of the Lottery that resulted in the interested party being unable to submit the protest within the 10 days. The procurement officer shall approve or deny the request in writing, state the reasons for the determination, and, if an extension is granted, set forth a new date for submission of the filing.

F. If the interested party shows good cause, the procurement officer may consider a protest that is not timely filed.

G. The procurement officer shall immediately give notice of a protest to all offerors.

History

• New Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Section R19-3-554 renumbered to R19-3-557 ; new Section R19-3-554 renumbered from R19-3-551 and amended by final rulemaking at 19 A.A.R. 1641, effective August 4, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-3-555 Stay of Procurements during the Protest

A. If a protest is filed before the solicitation due date, before the award of a contract, or before performance of a contract has begun, the procurement officer shall make a written determination to either:

1. Proceed with the award or contract performance, or

2. Stay all or part of the procurement if there is a reasonable probability the protest will be upheld or that a stay is in the best interest of the Lottery.

B. The procurement officer shall provide the interested party and other interested parties with a copy of the written determination.

C. Determination of a stay decision shall be issued no later than the time of issuance of the procurement officer's decision in accordance with R19-3-556.

D. Should a stay request be denied by the procurement officer, the protestant may request a procurement stay from the Director. Such requests for a procurement stay shall be submitted within 10 days of notification of the stay denial by the procurement officer.

History

• New Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Section R19-3-555 renumbered to R19-3-561 ; new Section R19-3-555 renumbered from R19-3-552 and amended by final rulemaking at 19 A.A.R. 1641, effective August 4, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-3-556 Resolution of Solicitation and Contract Award Protests

A. The procurement officer has the authority to resolve a protest.

B. The procurement officer shall issue a written decision within 14 days after a protest has been filed under R19-3-554 . The decision of the procurement officer shall contain the factual and legal basis for the decision and a statement that the decision of the Lottery may be appealed as an appealable agency action under A.R.S. Title 41, Chapter 6, Article 10 within 30 days from receipt of the decision.

C. The procurement officer shall furnish the decision to the interested party, by certified mail, return receipt requested, or by any other method that provides evidence of receipt and provide a copy to the Director.

D. The time limit for decisions under subsection (B) may be extended for good cause by a written determination. The extension shall not exceed an additional 30 days. The procurement officer shall notify the interested party in writing that the time for the issuance of a decision has been extended and the date by which a decision shall be issued.

E. If the procurement officer fails to issue a decision within the time limits set forth in this Article, the interested party may proceed as if the procurement officer had issued an adverse decision.

History

• New Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Section R19-3-556 renumbered to R19-3-564 ; new Section R19-3-556 renumbered from R19-3-553 and amended by final rulemaking at 19 A.A.R. 1641, effective August 4, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-3-557 Remedies by the Procurement Officer

A. If the procurement officer sustains a protest in whole or part and determines that a solicitation, a determination of not susceptible for award, or contract award does not comply with the procurement statutes and regulations, the procurement officer shall implement an appropriate remedy.

B. In determining an appropriate remedy, the procurement officer shall consider all the circumstances surrounding the procurement or proposed procurement including:

1. The seriousness of the procurement deficiency,

2. The degree of prejudice to other interested parties or to the integrity of the procurement system,

3. The good faith of the parties,

4. The extent of performance,

5. The costs to the Lottery,

6. The urgency of the procurement,

7. The impact on the agency's mission, and

8. Other relevant issues.

C. The procurement officer may implement any of the following appropriate remedies:

1. Decline to exercise an option to renew under the contract,

2. Terminate the contract,

3. Amend the solicitation,

4. Issue a new solicitation,

5. Award a contract consistent with procurement statutes and regulations, or

6. Render such other relief as determined necessary to ensure compliance with procurement statutes and regulations.

History

• New Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). R19-3-557 renumbered to R19-3-565 ; new Section R19-3-557 renumbered from R19-3-554 and amended by final rulemaking at 19 A.A.R. 1641, effective August 4, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-3-558 Appeals to the Director Regarding Protest Decision

A. An interested party may appeal the decision entered or deemed to be entered by the procurement officer to the Director within 30 days after the date the decision is received or deemed received under R19-3-556 . The interested party shall file a copy of the appeal with the Director and the procurement officer.

B. The interested party shall file the appeal in writing and shall include the following information:

1. The information prescribed in R19-3-554(B) including the identification of confidential information under R19-3-503,

2. A copy of the decision of the procurement officer, and

3. The precise factual or legal error in the decision of the procurement officer from which an appeal is taken.

C. The Director may consider any appeal that is not filed timely if:

1. The interested party shows good cause, or

2. The Director finds there is a good cause.

D. The Director shall resolve appeals of solicitation decisions as an appealable agency action under A.R.S. Title 41, Chapter 6, Article 10.

History

• New Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Section repealed; new Section made by final rulemaking at 19 A.A.C. 1641, effective August 4, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-3-559 Notice of Appeal to the Director Regarding Protests

A. The procurement officer shall promptly give notice of the appeal to all offerors.

B. The Director shall, upon request, furnish copies of the appeal to all offerors subject to the provisions of R19-3-503.

History

• New Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Section R19-3-559 renumbered to R19-3-566 ; new Section R19-3-559 made by final rulemaking at 19 A.A.R. 1641, effective August 4, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-3-560 Stay of Procurement during Appeal to Director

A. If a stay is issued under R19-3-555, the filing of an appeal shall automatically continue the stay, unless the Director makes a written determination that the award of the contract or a notice to proceed with contract performance is necessary to protect the substantial interests of the Lottery.

B. Following a review of the procurement officer's decision and the interested party's appeal, the Director may stay the procurement if the Director determines that there is a reasonable probability the protest will be upheld or that a stay is in the best interests of the Lottery.

History

• New Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Section R19-3-560 renumbered to R19-3-567 ; new Section R19-3-560 made by final rulemaking at 19 A.A.R. 1641, effective August 4, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-3-561 Agency Report Regarding Protest Appeals

A. The procurement officer shall file a complete report on any appeal under A.R.S. Title 41, Chapter 6, Article 10 within 21 days after the date the appeal is filed, at the same time furnishing a copy of the report to the interested party. The procurement officer shall also provide a copy of the report to any interested parties who request a copy, at their cost. The report shall contain copies of:

1. The appeal;

2. The offer submitted by the interested party;

3. The offer of the firm that is being considered for award;

4. The solicitation, including the specifications or portions relevant to the appeal;

5. The abstract of offers or relevant portions;

6. Any other documents that are relevant to the protest; and

7. A statement by the procurement officer setting forth findings, actions, recommendations and any additional evidence or information necessary to determine the validity of the appeal.

B. The time limit for filing the agency report under subsection (A) may be extended for good cause by a written determination. The extension shall not exceed an additional 30 days. The procurement officer shall notify the interested party in writing that the time for the issuance of the agency report has been extended and the date by which a decision shall be issued.

C. The interested party shall file comments on the agency report with the procurement officer within 10 days after receipt of the report. The interested party shall provide copies of the comments to the other interested parties.

D. The interested party may submit a written request to the Director for an extension of the period for submission of comments, identifying the reasons for the extension. The procurement officer shall approve or deny the request in writing, state the reasons for the determination, and, if an extension is granted, set forth a new date for the submission of filing comments.

History

• New Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Section repealed; new Section R19-3-561 renumbered from R19-3-555 and amended by final rulemaking at 19 A.A.C. 1641, effective August 4, 2013 (Supp. 13-2).

Ariz. Admin. Code § R19-3-562 Remedies by the Director

If the Director sustains the appeal in whole or part and determines that a solicitation, a not-susceptible-for-award determination, or an award does not comply with procurement statutes and rules, the Director shall implement remedies as provided in R19-3-557 or R19-3-563.

History

• New Section made by final rulemaking at 12 A.A.R. 4495, effective January 6, 2007 (Supp. 06-4). Section R19-3-562 renumbered to R19-3-568 ; new Section R19-3-562 made by final rulemaking at 19 A.A.C. 1641, effective August 4, 2013 (Supp. 13-2). Amended by final rulemaking at 22 A.A.R. 2966, effective 11/21/2016.

Ariz. Admin. Code § R19-3-563 Informal Settlement Conference

A. In any protest, claim or debarment proceeding, the Director may request to hold an informal settlement conference with all interested parties. The conference may be held at any time prior to a final administrative decision.

B. If an informal settlement conference is held, a person with the authority to act on behalf of the interested party must be present. The procurement officer shall notify the interested parties in writing that statements, either written or oral, made at the conference, including a written document, created or expressed solely for the purpose of settlement negotiations are inadmissible in any subsequent administrative or judicial hearing.

C. If any interested party chooses not to participate in an informal settlement conference, the Director, or the Director's designee, in his or her discretion, may conduct the conference with those interested parties that appear, or reschedule the conference, or terminate the conference.

D. If the informal settlement conference results in a full settlement agreement between all interested parties, that agreement shall be reduced to writing, signed by the interested parties, and entered as the final administrative decision in the proceeding. If the interested parties do not reach agreement on all matters at issue in the proceedings, but do agree to resolve one or some of the issues, that partial agreement shall be reduced to writing, be signed by the interested parties, and bind the interested parties through the remainder of the proceedings.

E. If the Director, or the Director's designee, participates in an informal settlement conference, the Director, or the Director's designee, may not participate in or attempt to influence the outcome of the final administrative decision.

F. When making a final administrative decision, the Director shall not give any weight to whether or not an informal settlement conference has been held, or to any consideration of the perceived success or failure of the informal settlement conference.

History

• New Section made by final rulemaking at 19 A.A.C. 1641, effective August 4, 2013 (Supp. 13-2). Adopted by final rulemaking at 22 A.A.R. 2966, effective 11/21/2016.

Ariz. Admin. Code § R19-3-564 Dismissal Before Hearing

A. The Director may dismiss, upon written determination, an appeal in whole or in part before scheduling a hearing if:

1. The appeal does not state a valid basis for protest,

2. The appeal is untimely as prescribed under R19-3-558, or

3. The appeal attempts to raise issues not raised in the protest.

B. The procurement officer shall notify the interested party in writing of a determination to dismiss an appeal before hearing.

History

• New Section R19-3-564 renumbered from R19-3-556 by final rulemaking at 19 A.A.C. 1641, effective August 4, 2013 (Supp. 13-2). Renumbered from R19-3-563 final rulemaking at 22 A.A.R. 2966, effective 11/21/2016.

Ariz. Admin. Code § R19-3-565 Controversies Involving Contract Claims Against the Lottery

A. A claimant shall file a contract claim with the procurement officer within 180 days after the claim arises. The claim shall include the following:

1. The name, address, and telephone number of the claimant;

2. The signature of the claimant or claimant's representative;

Identification of the solicitation or contract number;

4. A detailed statement of the legal and factual grounds of the claim including copies of the relevant documents; and

5. The form and dollar amount of the relief requested.

B. The procurement officer shall have the authority to settle and resolve contract claims.

History

• New Section R19-3-565 renumbered from R19-3-557 and amended by final rulemaking at 19 A.A.C. 1641, effective August 4, 2013 (Supp. 13-2). Renumbered from R19-3-564 final rulemaking at 22 A.A.R. 2966, effective 11/21/2016.

Ariz. Admin. Code § R19-3-566 Procurement Officer's Decision Regarding Contract Claims

A. If a claim cannot be resolved under R19-3-565, the procurement officer shall, upon a written request by the claimant for a final decision, issue a written decision no more than 60 days after the request is filed. Before issuing a final decision, the procurement officer shall review the facts pertinent to the claim and secure any necessary assistance from legal, fiscal, and other advisors.

B. The procurement officer shall furnish the decision to the claimant, by certified mail, return receipt requested, or by any other method that provides evidence of receipt, with a copy to the Director. The decision shall include:

1. A description of the claim;

2. A reference to the pertinent contract provision;

3. A statement of the factual areas of agreement or disagreement;

4. A statement of the procurement officer's decision, with supporting rationale; and

5. A paragraph which substantially states: "This is the final decision of the procurement officer. This decision may be appealed under A.R.S. Title 41, Chapter 6, Article 10 within 30 days from receipt of the decision. If you appeal, you must file a written notice of appeal containing the information required in R19-3-567(B) with the procurement officer within 30 days from the date you receive this decision."

C. If the procurement officer fails to issue a decision on a contract claim within 60 days after the request is filed, the claimant may proceed as if the procurement officer had issued an adverse decision.

History

• New Section R19-3-566 renumbered from R19-3-559 and amended by final rulemaking at 19 A.A.C. 1641, effective August 4, 2013 (Supp. 13-2). Renumbered from R19-3-565 final rulemaking at 22 A.A.R. 2966, effective 11/21/2016.

Ariz. Admin. Code § R19-3-567 Appeals and Reports to the Director Regarding Contract Claims

A. The claimant may appeal the final decision of the procurement officer to the Director within 30 days from the date the decision is received. The claimant shall file a copy of the appeal with the Director and the procurement officer.

B. The claimant shall file the appeal in writing and shall include the following:

1. A copy of the decision of the procurement officer,

2. A statement of the factual areas of agreement or disagreement, and

The precise factual or legal error in the decision of the procurement officer from which an appeal is taken.

C. The procurement officer shall file a complete report on the appeal with the Director within 14 days from the date the appeal is filed, providing a copy to the claimant at that time by certified mail, return receipt requested, or by any other method that provides evidence of receipt. The report shall include a copy of the claim, a copy of the procurement officer's decision, if applicable, and any other documents that are relevant to the claim.

D. The Director shall resolve appeals on claim decisions as contested cases under A.R.S. § 41-1092.07.

History

• New Section R19-3-567 renumbered from R19-3-560 by final rulemaking at 19 A.A.C. 1641, effective August 4, 2013 (Supp. 13-2). Renumbered from R19-3-566 final rulemaking at 22 A.A.R. 2966, effective 11/21/2016.

Ariz. Admin. Code § R19-3-568 Controversies Involving Lottery Claims Against the Contractor

If the procurement officer is unable to resolve, by mutual agreement, a claim asserted by the Lottery against a contractor, the procurement officer shall seek resolution under A.R.S. § 41-1092.07. The procurement officer shall furnish a copy of the claim to the Director.

History

• New Section R19-3-568 renumbered from R19-3-562 and amended by final rulemaking at 19 A.A.C. 1641, effective August 4, 2013 (Supp. 13-2). Renumbered from R19-3-567 final rulemaking at 22 A.A.R. 2966, effective 11/21/2016.

Ariz. Admin. Code § R19-3-569 Guidance

If a procedure is not provided by these rules, the procurement officer may issue a written determination using for guidance A.R.S. § 41-2501 through § 41-2591 or 2 A.A.C. 7, including, but not limited to a procurement utilizing a cooperative contract.

History

• Renumbered from R19-3-568 final rulemaking at 22 A.A.R. 2967, effective 11/21/2016.

Article 6 ANNUITY ASSIGNMENTS

Ariz. Admin. Code § R19-3-601 Voluntary Assignment of Prizes Paid in Installments

A. A prize winner may request a voluntary assignment of an annuity or a portion of the remaining installments of the annuity by filing an action in a court of competent jurisdiction requesting judicial approval of the assignment. The prize winner and the purchaser of the annuity shall name the state of Arizona as a defendant in the action and shall bear all costs associated with filing the request for judicial approval of the assignment.

B. A prize winner shall include in the request for judicial approval under subsection (A) the following:

1. The affidavit required under A.R.S. § 5-563(A)(3);

2. A copy of the signed assignment agreement between the prize winner and the assignee; and

3. Proof that the fee under subsection (D) has been paid to the Lottery.

C. After the court approves the assignment, the prize winner shall send the written judicial approval to the Lottery. Upon receipt of judicial approval of the voluntary assignment, the Director shall direct the insurance company to make future annuity payments as provided in the Court order.

D. The prize winner or assignee shall pay a fee of $235.00 to the Lottery to process the voluntary assignment.

History

• Adopted as an emergency effective October 31, 1986, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 86-5). Adopted without change as a permanent rule effective February 25, 1987 (Supp. 87-1). Amended effective May 7, 1993 (Supp. 93-2). R19-3-601 recodified from R4-37-601 (Supp. 95-1). Repealed effective June 14, 1997 (Supp. 97-2). New Section made by final rulemaking at 11 A.A.R. 2028, effective July 2, 2005 (Supp. 05-2). Pursuant to authority of A.R.S. § 41-1011(C), Laws 2010, 6th Special Session, Ch. 2, authorizes the transfer of A.R.S. citations. Therefore the A.R.S. citation in subsection (B)(1) was updated. Agency request filed September 24, 2012, Office File No. M12-343 (Supp. 12-3).

Article 7 DESIGN AND OPERATION OF INSTANT GAMES

Ariz. Admin. Code § R19-3-701 Definitions

In this Article, unless the context otherwise requires:

1. "Caption" means the printed characters appearing below a play symbol or prize symbol that verify and correspond with that symbol. No more than one caption will appear under a symbol.

2. "Game Profile" means the written document in which the Lottery Commission authorizes the Director to issue an order that contains all of the non-confidential game fundamentals required by these rules for an instant game.

3. "Instant game" means a game in which the outcome is predetermined, and the player discovers if they are a winner through game play and/or by scanning the game's barcode.

4. "Instant scratch game" means an instant game in which a protective coating covering the game data is scratched off.

5. "Instant tab game" means an instant game in which the protective covering is a perforated paper tab that is opened.

6. "Pack" means a group of tickets bearing a common identification number.

7. "Pack-ticket number" means a unique multi-digit number that includes a game number, a pack number, and a ticket number which distinguishes each ticket from every other ticket within an instant game.

8. "PIN" means the designated characters within the validation number that allows an on-line terminal to validate an instant ticket.

9 8. "Play area" means the portion or portions of a ticket which contains the play symbol or symbols. More than one play area may appear on a ticket.

10 9. "Play symbols" means the printed image or images that appear within the defined play area of the ticket.

11 10."Prize structure" means the estimated number of prizes, prize values, and overall odds of winning prizes for a game.

12 11. "Prize symbol" means the printed image or images that indicates the prize or prizes available in a game.

13. "Retailer validation code" means the multiple letters in the play area, under the protective covering that verify prizes less than.

14 12. "Validation code" means the unique barcode on a ticket that is used to authenticate winning tickets.

History

• Adopted effective October 25, 1996 (Supp. 96-4). Amended by final rulemaking at 13 A.A.R. 1031, effective April 27, 2007 (Supp. 07-1). Amended by final rulemaking at 17 A.A.R. 53, effective December 28, 2010 (Supp. 10-4). Amended by final rulemaking at 28 A.A.R. 3668, effective 1/3/2023.

Ariz. Admin. Code § R19-3-702 Instant Game Profile

A. Each instant game shall have a Game Profile and at a minimum, the Profile shall contain the following information: that includes the requirements of R19-3-402 and a detailed description of how to play and win the game.

1. Game name;

2. Game number;

3. Prize structure;

4. Game Playstyle;

5. Play symbols;

6. Retailer validation codes, if any;

7. Special features, if any;

8. Retail sales price;

9. How to play and win instructions; and

10. Prize draw eligibility requirements, including filing period for eligibility in a winners drawing, if applicable.

B. The Commission shall approve the individual Game Profile prior to the game being sold to the public.

C. A new Game Profile is not required on a previously approved instant game where the only change is the game number.

History

• Adopted effective October 25, 1996 (Supp. 96-4). Amended by final rulemaking at 13 A.A.R. 1031, effective April 27, 2007 (Supp. 07-1). Amended by final rulemaking at 17 A.A.R. 53, effective December 28, 2010 (Supp. 10-4). Amended by final rulemaking at 28 A.A.R. 3668, effective 1/3/2023.

Ariz. Admin. Code § R19-3-703 Instant Game Playstyle

A. The playstyle for an individual game shall be fully described in the Game Profile and shall be one of the following methods of play unless otherwise approved by the Commission:

1. Match Two,

2. Match Three,

3. Add-up,

4. Tic-Tac-Toe,

5. Key Symbol or Symbols Match,

6. Key Symbol or Symbols Beat,

7. Symbols in Sequence,

8. Spell Outs,

9. In Between,

10. Bingo,

11. Pattern,

12. Legend,

13. Coordinates,

14. Find,

15. Maze,

16. Grid,

17. Elimination,

18. Sets.

B. More than one game and more than one playstyle may appear on a ticket.

History

• Adopted effective October 25, 1996 (Supp. 96-4). Amended by final rulemaking at 13 A.A.R. 1031, effective April 27, 2007 (Supp. 07-1). Amended by final rulemaking at 28 A.A.R. 3668, effective 1/3/2023.

Ariz. Admin. Code § R19-3-704 Determination of a Winning Instant Game Ticket

A. The play symbols are the only determining factor for prize eligibility for a valid ticket.

B. Eligibility to win a prize is based on compliance with the designated playstyle. One or more of the following playstyles may be used on a game:

Match Two. The player shall win the prize or prizes indicated by uncovering two identical play symbols on a play area.

2. Match Three. The player shall win the prize or prizes indicated by uncovering three identical play symbols on a play area.

3. Add-Up. The player shall win the prize or prizes indicated in either of the following ways:

a. The player adds up the play symbols and the amount is greater than or equal to the designated key symbol on the ticket, or

b. The player adds up the play symbols designated for the player and the total is greater than or equal to the control key symbol or symbols.

4. Tic-Tac-Toe. The player shall win the prize or prizes indicated by uncovering three identical play symbols, in any horizontal row, or any vertical column, or any diagonal, on a multi-symbol grid on the play area.

5. Key Symbol or Symbols Match. The player shall win the prize or prizes indicated by uncovering the play symbol or symbols identical to the designated key play symbol or symbols.

6. Key Symbol or Symbols Beat. The player shall win the prize or prizes indicated by uncovering the play symbol or symbols designated for the player in the ticket play area which is greater than the control play symbol or symbols.

7. Symbols in Sequence. The player shall win the prize or prizes indicated by uncovering the designated play symbols in the specified sequential order.

Spell Outs. The player shall win the prize or prizes indicated by uncovering the play symbols to form the designated word or words.

9. In Between. The player shall win the prize or prizes indicated by uncovering the play symbol or symbols designated for the player with a value less than the highest control play symbol or symbols and greater than the play lowest control play symbol or symbols.

10. Bingo. The player shall win the prize or prizes indicated by uncovering the play symbols on the designated play area or areas that are identical to the play symbols uncovered on the control play area to form the specified pattern or patterns.

11. Pattern. The player shall win the prize or prizes indicated by uncovering the play symbol or symbols on a multi-symbol play area that follow a designated pattern.

12. Legend. The player shall win the prize or prizes indicated by uncovering the designated number or type of play symbols that correspond to a legend.

Coordinates. The player shall win the prize or prizes indicated by uncovering a play symbol or symbols that direct the player to a location on the play area to reveal the specified play symbol, or the number or pattern of play symbols.

14. Find. The player shall win the prize or prizes indicated by uncovering the designated play or prize symbol.

15. Maze. The player shall win the prize or prizes indicated by uncovering the directional symbols to make a path or paths leading to a designated prize symbol.

16. Grid. The player shall win the prize or prizes indicated by uncovering a specified number or pattern of play symbols on a grid on the play area.

Elimination. The player shall win the prize indicated by uncovering the corresponding prize or symbol on a prize table to eliminate all but one remaining prize amount or symbol.

18. Sets. The player shall win the prize or prizes indicated by uncovering the designated group or groups of play symbols, without repetition or deletion of any play symbol, within a specified location of the play area.

C. Each of the playstyles described in subsection (B) may include one or more special features such as "automatic win," "multiplier," "wild," "win all," "extra chance," or "free space" that provides an added or alternative method of winning.

History

• Adopted effective October 25, 1996 (Supp. 96-4). Amended by final rulemaking at 13 A.A.R. 1031, effective April 27, 2007 (Supp. 07-1). Amended by final rulemaking at 28 A.A.R. 3668, effective 1/3/2023.

Ariz. Admin. Code § R19-3-705 Ticket Validation and Confirmation Requirements

A. Each instant game ticket shall be validated prior to payment of a prize.

B. To be eligible for a prize, a ticket holder shall present a ticket meeting all of the requirements of R19-3-407 .

1. The ticket shall not be stolen or appear on any list of omitted tickets on file with the Lottery;

2. The ticket shall not be counterfeit or forged, in whole or in part;

3. The ticket shall not be mutilated, altered, unreadable, reconstituted, or tampered with in any manner;

4. The ticket shall not be blank, partially blank, misregistered, defective, or printed or produced in error;

5. The play and prize symbols shall have the captions that confirm and agree with those applicable to that instant game;

6. The ticket shall have been issued by the Lottery in an authorized manner;

7. The ticket shall have been legally obtained;

8. The ticket shall pass all other confidential validation tests determined by the Director;

9. The ticket shall be validated in accordance with the provisions of R19-3-706 and R19-3-708 ;

10. The display printed on the ticket shall correspond precisely with the approved artwork on file at the Lottery;

11. All of the ticket symbols originally printed on the ticket shall appear in the play area on the ticket and shall correspond to those shown in the Game Profile; and

12. The play and prize symbols shall have the required captions that confirm and agree with those of the appropriate instant game.

C. In addition to the requirements in R19-3-407, each instant scratch game ticket shall meet the following:

1. The ticket contains a game number, a pack-ticket number, a retailer validation code, and at least one ticket validation code; and

2. The validation code of a winning ticket appears in the Lottery's official file of validation codes of winning tickets and has not been previously paid.

D. In addition to the requirements in R19-3-407, each instant tab game ticket shall include the following:

1. The ticket shall contain a game number and a serial number, and

2. A winning tab ticket shall contain the necessary prize and win symbol captions to enable visual confirmation of a prize.

E. If the ticket fails to pass any of the applicable requirements in this Section, the ticket is void and ineligible for any prize payout.

History

• Adopted effective October 25, 1996 (Supp. 96-4). Amended by final rulemaking at 13 A.A.R. 1031, effective April 27, 2007 (Supp. 07-1). Amended by final rulemaking at 17 A.A.R. 53, effective December 28, 2010 (Supp. 10-4). Amended by final rulemaking at 28 A.A.R. 3668, effective 1/3/2023.

Ariz. Admin. Code § R19-3-706 [Repealed]

History

• Adopted effective October 25, 1996 (Supp. 96-4). Amended by final rulemaking at 13 A.A.R. 1031, effective April 27, 2007 (Supp. 07-1). Amended by final rulemaking at 17 A.A.R. 53, effective December 28, 2010 (Supp. 10-4). Pursuant to authority of A.R.S. § 41-1011(C), Laws 2010, 6th Special Session, Ch. 2, authorizes the transfer of A.R.S. citations. Therefore the A.R.S. citation in subsection (C) was updated. Agency request filed September 24, 2012, Office File No. M12-343 (Supp. 12-3). Repealed by final rulemaking at 28 A.A.R. 3668, effective 1/3/2023.

Ariz. Admin. Code § R19-3-707 Instant Games Claim Period

A. For the claimant to receive payment, Unless otherwise approved by the Commission in the Game Profile, a winning instant scratch game ticket, except an instant tab ticket, shall be received by the Lottery or a retailer no later than 5:00 p.m. (Phoenix time) on the 180th calendar day following the announced end of the instant game as designated by R19-3-409 .

1. If a claimant presents a valid winning instant scratch ticket to a retailer for payment on the 180th calendar day following the announced end of the instant scratch game and is not paid the prize, the Director is authorized to pay the prize if the claimant presents the valid winning ticket to the Lottery no later than 5:00 p.m. (Phoenix time) on the following business day.

2. In the case of a drawing prize associated with an instant scratch game, the claimant shall claim the prize no later than 5:00 p.m. (Phoenix time) on the final day designated by the Director and on file at the Lottery.

B. Unless otherwise approved by the Commission in the Game Profile, a winning instant tab game ticket must be presented to the selling retailer on the same day as purchased.

History

• Adopted effective October 25, 1996 (Supp. 96-4). Amended by final rulemaking at 13 A.A.R. 1031, effective April 27, 2007 (Supp. 07-1). Amended by final rulemaking at 17 A.A.R. 53, effective December 28, 2010 (Supp. 10-4). Amended by final rulemaking at 28 A.A.R. 3668, effective 1/3/2023.

Ariz. Admin. Code § R19-3-708 Procedure for Claiming Instant Ticket Prizes

A. To claim an instant game ticket prize, except an instant tab ticket prize, the claimant shall meet the requirements of R19-3-408 .

1. All of the ticket validation criteria in Section R19-3-705 have been satisfied; and

2. A proper validation slip, which is an authorization to pay, has been generated by the terminal.

B. To claim an instant scratch ticket prize that the retailer does not validate or is not authorized to pay, including all prizes of $600 or more, the claimant shall submit a claim form, available from any retailer, and the ticket to the Lottery. If the claim is:

1. Verified and validated by the Lottery as a winning ticket, the Lottery shall make payment of the amount due to the claimant, less any authorized debt setoff amounts, or withheld taxes, or both.

2. Denied by the Lottery, the claimant shall be notified within 15 days from the day the claim is received in the Lottery office.

C. If an instant scratch ticket prize winner dies prior to receiving full payment, the Lottery shall pay all remaining prize money to the prize winner's beneficiary or to any person designated by an appropriate judicial order.

D. To claim an instant tab ticket prize, the claimant shall present the ticket to the selling retailer on the same day as purchased. The selling retailer shall pay all winning prizes

1. All of the ticket validation criteria in R19-3-705(A) and (B)(1) through (8) have been satisfied; and

2. after the retailer has performed a visual confirmation of the winning play, prize, and win symbol captions.

E. Payment of prize money shall not be accelerated ahead of its normal date of payment.

F. The Lottery is discharged of all liability upon payment of the instant scratch ticket prize money.

G. The retailer has sole responsibility to pay prizes on instant tab tickets. The Lottery is discharged of all liability to pay prizes on instant tab tickets.

History

• Adopted effective October 25, 1996 (Supp. 96-4). Amended by final rulemaking at 13 A.A.R. 1031, effective April 27, 2007 (Supp. 07-1). Amended by final rulemaking at 17 A.A.R. 53, effective December 28, 2010 (Supp. 10-4). Amended by final rulemaking at 28 A.A.R. 3668, effective 1/3/2023.

Ariz. Admin. Code § R19-3-709 [Repealed]

History

• Adopted effective October 25, 1996 (Supp. 96-4). Amended by final rulemaking at 13 A.A.R. 1031, effective April 27, 2007 (Supp. 07-1). Amended by final rulemaking at 17 A.A.R. 53, effective December 28, 2010 (Supp. 10-4). Repealed by final rulemaking at 28 A.A.R. 3668, effective 1/3/2023.

Article 10 PROMOTIONS

Ariz. Admin. Code § R19-3-1001 Definitions

In this Article, unless the context otherwise requires:

1. "Category" means player, consumer, retailer, vendor, or other person who participates in the promotion.

2. "Charitable organization" means a non-profit organization organized and operated exclusively for charitable purposes and is qualified under § 502(c)(3) of the United States Internal Revenue Code.

3. "Media" means the method of communication including any social media, such as television, radio, print, outdoor, digital, or Internet, with wide reach and influence.

4. "Prize type" means cash, gift cards, free ticket or tickets, coupon or coupons, merchandise, retailer or vendor product or service, or discount on retailer or vendor product or service.

5. "Promotion" means a program designed to increase awareness of the Lottery, Lottery beneficiaries, and Lottery games that is intended to increase the sale of Lottery games to produce the maximum amount of net revenue for the state.

6. "Promotion playstyle" means the type of process or procedure used to control the promotion.

7. "Promotion Profile" means the written document in which the Lottery Commission authorizes the Director to issue an order that contains all of the non-confidential promotion fundamentals required by statute for a promotion.

8. "Promotional merchandise" means Lottery related goods, consumer products, or services provided by the Lottery for use in a promotion.

9. "Promotional Game" means a Lottery Game for use in a promotion.

10. "Targeted game or targeted games" means the specific game or games a promotion is intended to increase sales or awareness of.

11. "Tickets" means one or more Lottery game plays from the targeted game or games.

History

• New Section adopted by final rulemaking at 6 A.A.R. 1077, effective March 3, 2000 (Supp. 00-1). Amended by final rulemaking at 13 A.A.R. 2775, effective September 15, 2007 (Supp. 07-3). Amended by final rulemaking at 28 A.A.R. 3668, effective 1/3/2023.

Ariz. Admin. Code § R19-3-1002 Promotion Profile

A. Each promotion shall have a Promotion Profile and at a minimum, the Profile shall contain the following information:

Promotion name;

2. Promotion playstyle;

3. Category;

4. Targeted game, games or Lottery beneficiaries involved in the promotion;

5. Promotion description;

6. Promotion selection criteria, if applicable;

7. Prize type and structure, including the estimated number and size of monetary prizes, free tickets, coupons, certificates, discounts, and merchandise prizes available, if applicable;

8. Retail sales price, if applicable;

9. Promotion date range (beginning and ending promotion dates);

10. Time range, if applicable;

11. Day or days of the week, if applicable;

12. Special feature, if any; and

13. Prize draw eligibility requirements, including filing period for eligibility in a winners drawing, if applicable.

B. The Commission shall approve the Promotion Profile prior to the promotion being introduced to the public for participation.

History

• New Section adopted by final rulemaking at 6 A.A.R. 1077, effective March 3, 2000 (Supp. 00-1). Amended by final rulemaking at 13 A.A.R. 2775, effective September 15, 2007 (Supp. 07-3).

Ariz. Admin. Code § R19-3-1003 Promotion Playstyle - Promotion Type

A. The playstyle for a specific promotion shall be fully described in the Promotion Profile and shall be one of the following methods of play unless otherwise approved by the Commission:

1. Second Chance Drawing - Player.

2. Second Chance Drawing - Retailer.

3. Retailer's Second Chance Drawing - Retailer/Player.

4. Increased Prize Payment.

5. Buy X and Get Y - Player.

6. Sell X and Get Y - Retailer.

7. Validate X and Get Y - Retailer.

8. Buy X and Get Y, Every Nth Transaction - Player.

9. Sell X and Get Y, Every Nth Transaction - Retailer.

Complete Survey.

11. Special Events

• Player.

12. Retailer Incentive.

13. Cross Promotion.

14. Media Promotion.

15. Customer Service.

16. Mystery Shopper - Retailer.

17. Ask For the Sale - Retailer.

18. Charitable Organization.

19. Public Contest - not related to specific Lottery game.

20. Multi-State Lottery (MUSL) Promotions.

21. Sweepstakes Drawing.

22. Applicant Incentive

B. More than one promotion may run concurrently.

C. Promotion may be held only on specific days of the week.

D. Promotion may be held only during specific hours of the day.

E. Promotion may be available for selected regions, zones, retailer groups or player groups. Groups may be made by business codes, regions, county, zip code, chain designator, field representative or sales quota.

History

• New Section adopted by final rulemaking at 6 A.A.R. 1077, effective March 3, 2000 (Supp. 00-1). Amended by final rulemaking at 13 A.A.R. 2775, effective September 15, 2007 (Supp. 07-3). Amended by final rulemaking at 28 A.A.R. 3668, effective 1/3/2023.

Ariz. Admin. Code § R19-3-1004 Determination of a Winning Promotion

Eligibility to win a prize is based on compliance with the designated promotion playstyle as follows:

1. Second Chance Drawing - Player. The player shall submit, as entry into a second chance drawing, the required coupon, tickets or entry form as defined in the Promotion Profile. The player or players selected in the prize drawing procedure shall win the prize type designated in the Promotion Profile.

2. Second Chance Drawing - Retailer. The retailer shall submit, as entry into a second chance drawing, the required coupon, tickets or entry form as defined in the Promotion Profile, or the Lottery may use information collected on its database as defined in the Promotion Profile to qualify the retailer. The retailer or retailers selected in the prize drawing procedure shall win the prize type designated in the Promotion Profile.

3. Retailer's Second Chance Drawing - Retailer/Player. Retailers participating in the promotion shall ask players to deposit the required coupon, tickets or entry form into a Drawing Container at the retailer's location. The retailer shall perform random drawings according to the Promotion Profile. The players selected in the drawings shall win the prize type designated in the Promotion Profile. The Lottery shall provide the participating retailer with a predetermined number of prizes for the promotion.

4. Increased Prize Payout. Players who win a particular prize denomination in the target game or games shall win an additional amount specified in the Promotion Profile. The Promotion Profile shall define any required level of participation to be eligible.

5. Buy X and Get Y - Player. Each time a player buys a predetermined number of tickets from the targeted game or games, the player shall receive entry into a drawing or the prize type designated in the Promotion Profile. The Buy X requirement and the Get Y shall be specified in the Promotion Profile.

6. Sell X and Get Y - Retailer. Each time a retailer sells a predetermined number of tickets from the targeted game or games, the retailer shall receive entry into a drawing or the prize type designated in the Promotion Profile. The Sell X requirement and the Get Y shall be specified in the Promotion Profile.

7. Validate X and Get Y - Retailer. Each time a retailer validates a predetermined number or prize amount from the targeted game or games, the retailer shall receive entry into a drawing or the prize type designated in the Promotion Profile. The Validate X requirement and the Get Y shall be specified in the Promotion Profile.

8. Buy X and Get Y, Every Nth Transaction - Player. Each time a player buys a predetermined number or type of ticket or tickets from the target game or games and that purchase is the Nth transaction produced by the on-line system, the player shall receive the entry into a drawing or prize type designated in the Promotion Profile. The Buy X requirement, the Get Y, and the Nth transaction shall be specified in the Promotion Profile.

9. Sell X and Get Y, Every Nth Transaction - Retailer. Each time a retailer sells a predetermined number of tickets from the target game or games and that sale is the Nth transaction produced by the on-line system, the retailer shall receive the entry into a drawing or prize type designated in the Promotion Profile. The Sell X requirement, the Get Y, and the Nth transaction shall be specified in the Promotion Profile.

10. Complete Survey. The player or retailer who completes a designated survey shall receive the prize type designated in the Promotions Profile.

11. Special Events - Players. Players who attend a Lottery sponsored special event may participate in activities designed to promote Lottery products. Player participation may include spinning the Lottery prize wheel, various carnival type games of little or no skill, or purchase of tickets for targeted game or games. The prize type shall be designated and awarded according to the Promotion Profile.

12. Retailer Incentive. The retailer shall become eligible to earn the designated prize type through participation as defined in the Promotion Profile.

13. Cross Promotion. Players who present a predetermined number of non-winning tickets of the targeted game or games to a participating retailer or vendor shall win the prize type designated in the Promotion Profile.

14. Media Promotion. Players who participate in media-related promotions shall be eligible to receive the prize type designated in the Promotion Profile. The Lottery shall provide the participating media outlet with coupons or tickets from the targeted game or games or promotional merchandise items.

15. Customer Service. If a player is inconvenienced or dissatisfied as a result of Lottery actions below the usual level of service the Lottery provides, the Lottery may provide the player with the prize type designated in the Promotions Profile.

16. Mystery Shopper - Retailer. The Lottery shall send mystery shoppers or spotters to visit randomly selected retailers in the promotional area. Each retailer who meets the requirements specified in the Promotion Profile shall win the designated prize type.

17. Ask For The Sale - Retailer. Each retailer participating in the promotion shall ask all customers who are determined to be of legal gaming age if they want to purchase a Lottery ticket for the targeted game or games. If the retailer does not ask an eligible customer, the customer shall receive the prize type designated in the Promotion Profile.

18. Charitable Organization. The Lottery shall provide a qualifying charitable organization with a predetermined number of tickets, coupons, or promotional merchandise from a targeted game or games to distribute during their charitable event.

19. Public Contest - not related to specific Lottery game. The Lottery may conduct a contest not related to any specific Lottery game as defined in the Promotion Profile.

20. Multi-State Lottery (MUSL) Promotions. The Lottery may participate in a Multi-State Lottery game-related promotion adopted by the MUSL board.

Sweepstakes Drawing. The player shall enter into a Sweepstakes drawing as defined in the Promotion Profile. The player or players selected in the prize drawing procedure shall win the prize type designated in the Promotion Profile.

22. Applicant Incentive. A prospective retailer shall become eligible to earn the designated prize type through timely submission of a Retailer application as defined in the Promotion Profile.

History

• New Section adopted by final rulemaking at 6 A.A.R. 1077, effective March 3, 2000 (Supp. 00-1). Amended by final rulemaking at 13 A.A.R. 2775, effective September 15, 2007 (Supp. 07-3). Amended by final rulemaking at 28 A.A.R. 3668, effective 1/3/2023.

Ariz. Admin. Code § R19-3-1005 [REPEALED]

History

• New Section adopted by final rulemaking at 6 A.A.R. 1077, effective March 3, 2000 (Supp. 00-1). Section repealed by final rulemaking at 13 A.A.R. 2775, effective September 15, 2007 (Supp. 07-3).

Ariz. Admin. Code § R19-3-1006 [REPEALED]

History

• New Section adopted by final rulemaking at 6 A.A.R. 1077, effective March 3, 2000 (Supp. 00-1). Section repealed by final rulemaking at 13 A.A.R. 2775, effective September 15, 2007 (Supp. 07-3).

Ariz. Admin. Code § R19-3-1007 Procedure for Claiming Promotion Prizes and Claim Period

A. To claim a promotion prize, a claimant must follow the procedures provided in the Promotion Profile.

B. Promotion details are subject to the terms of the Promotion Profile which may modify or specify the ownership, authentication, validation procedures, or the time period for claiming a prize.

History

• New Section adopted by final rulemaking at 6 A.A.R. 1077, effective March 3, 2000 (Supp. 00-1). Amended by final rulemaking at 13 A.A.R. 2775, effective September 15, 2007 (Supp. 07-3). Amended by final rulemaking at 28 A.A.R. 3668, effective 1/3/2023.

Ariz. Admin. Code § R19-3-1008 Disputes Concerning a Promotion Game, or a Promotion Winner

A. If a dispute between the Lottery and a claimant occurs concerning a promotion ticket or the winning of a promotion prize, the Director is authorized to replace the disputed ticket or promotion prize with a ticket or promotion prize of equivalent value from any current promotion. The decision of the Director is a final, appealable agency action.

B. Upon claim verification and payment of a prize, the Lottery shall be discharged of all liability to the claimant.

C. By accepting a prize, the winner, his or her heirs, or legal representative agrees to indemnify and hold harmless, release, and discharge the Lottery, its employees, directors, and Commissioners from and against loss, claim, damage, suit, or injury arising out of or relating to the acceptance of the prize.

All disputes concerning a Promotion Game or a Promotion Prize are subject to the requirements of R19-3-410.

History

• New Section adopted by final rulemaking at 6 A.A.R. 1077, effective March 3, 2000 (Supp. 00-1). Amended by final rulemaking at 13 A.A.R. 2775, effective September 15, 2007 (Supp. 07-3). Amended by final rulemaking at 28 A.A.R. 3668, effective 1/3/2023.

Chapter 4 DEPARTMENT OF GAMING

Article 1 EVENT WAGERING

Ariz. Admin. Code § R19-4-101 Definitions

A. The definitions in A.R.S. § 5-1301 apply to this Article

B. Additionally, for purposes of this Article and the Act, and unless the context requires otherwise:

1. "Act" means Title 5, Arizona Revised Statutes, Chapter 11.

"Affiliate" means a person, directly or indirectly, through one or more intermediaries, who controls or is controlled by, a responsible party.

3. "Applicant" means any person who has applied for a license under the provisions of the Act or this Article.

4. "Application" means all the forms and documents that are required to be submitted or completed to obtain a license under the provisions of the Act or this Article.

5. "Article" means Arizona Administrative Code, Title 19, Chapter 4, Article 1.

6. "Commercially Reasonable Terms" includes, for the purposes of league data only, the following non-exclusive factors:

a. The extent to which event wagering operators have purchased the same or similar official league data on the same or similar terms;

b. The speed, accuracy, timeliness, reliability, quality, and quantity of the official league data as compared to comparable nonofficial league data;

c. The quality and complexity of the process used to collect and distribute the official league data as compared to comparable non-official league data; and

d. The availability and cost of similar league data from multiple sources.

7. "Designee" means a person authorized to act on behalf of an event wagering operator and who is responsible for the management and control of event wagering operations. A designee is not independently eligible to become an event wagering operator, nor is it eligible to transfer licensure. The term is not inclusive of designee as referenced in A.R.S. § 5-1316(C).

8. "Event Wager" means a wager on sports events or other events, portions of sports events or other events, the individual performance statistics of athletes in a sports event or combination of sports events or the individual performance of individuals in other events or a combination of other events through any system or method of wagering.

9. "Event Wagering Platform" means the internet interface to a single event wagering system, which is designed to accept mobile event wagers through a website and/or a mobile application.

10. "Event Wagering System" means the hardware, software, firmware, communications technology or other equipment to allow patrons to place event wagers, regardless of whether event wagers are offered at retail, to include kiosks, and/or over the internet on an event wagering platform.

"Geofence Provider" means a person who creates a virtual perimeter for a real geographic location.

12. "Global Risk Management" means the management of risks associated with event wagering, the setting or changing of event wagers, cutoff times for event wagers, acceptance or rejection of event wagers, laying off of event wagers, lines, point spreads, and odds for event wagers, and other activity relating to event wagering.

13. "Independent Test Laboratory" means a person who provides testing services for responsible parties to certify that event wagering systems, processes, and programs meet the technical requirements of the Act and this Article.

14. "Integrity Monitoring Provider" means an independent third person who assists in the identification of suspicious wagering activity.

15. "Internal Control System" means the minimum level of operational controls developed by a responsible party to ensure the integrity of event wagering.

16. "Kiosk" means a device located within a retail wagering area that interfaces with an event wagering system and may be utilized by a patron to place event wagers, redeem winning tickets, redeem vouchers, open a player account, and make player account deposits and withdrawals.

17. "League Data Provider" means a person who provides statistical results, outcomes, and other data related to approved events.

18. "License" means an approval issued by the Department to a person pursuant to this Article to be involved in the operation of event wagering.

19. "Licensee" includes any person licensed by the Department under this Article.

20. "Marketing Affiliate" means a person who is involved in the promotion, marketing, and recruitment for event wagering business in exchange for a commission or other fee based on the number of registrations, wagering activity, or a percentage of adjusted gross event wagering receipts. Owners, operators, promoters, tribes, tribally owned entities, and their designees, as referenced in A.RS. § 5-1307(a) and (b), shall not be subject to licensure as Marketing Affiliates.

"Outstanding Event Wagering Liability" means the sum of the aggregate amount wagered on events whose outcomes have not been determined and the amount owed but unpaid on winning wagers.

"Patron" means a player or participant who places event wagers pursuant to the Act and this Article.

23. "Player Account" means an account established by a patron with a responsible party so that the patron may place event wagers with that responsible party. Player accounts may also be referred to as event wagering accounts.

24. "Responsible Party" means event wagering operators, designees, limited event wagering operators, and management services providers.

25. "Retail Wagering Area" or "Retail" means the designated area within an event wagering facility where event wagering activity under the Act takes place.

26. "State" means the State of Arizona not to include the Indian lands within its boundaries.

27. "Supplier" or "Vendor" includes persons who satisfy the definition of supplier in the Act and persons who provide goods and/or services, directly or indirectly, to a responsible party in connection with event wagering pursuant to the Act, including those referred to as ancillary suppliers for purposes of the licensing fee structure. Ancillary suppliers include:

a. Affiliates;

b. Bookmakers;

c. Data centers providing physical security and infrastructure;

d. Geofence providers;

e. Identity verification service providers;

f. Independent test laboratories;

g. Integrity monitoring providers;

h. League data providers;

i. Marketing affiliates;

j. Payment processors; and

k. Any other person as determined by the Department.

28. "Suspicious Wagering Activity" means unusual event wagering activity that cannot be explained and is indicative of any of the following: match fixing, the manipulation of an event, misuse of inside information, a potential breach of a sports governing body's internal rules or code of conduct pertaining to event wagering, any other conduct that corrupts the outcome of an event, and any other prohibited activity.

29. "Ticket" means a printed or electronic document utilized to record a wager by an event wagering system.

30. "Unusual Wagering Activity" means abnormal wagering activity exhibited by one or more authorized participants and considered by a responsible party as a potential indicator of suspicious wagering activity.

31. "Voucher" means a printed or electronic wagering instrument which may also be redeemed for cash or cash equivalents.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021. Amended by final exempt rulemaking at 28 A.A.R. 919, effective 4/15/2022.

Ariz. Admin. Code § R19-4-102 Event Wagering Permitted

Event wagering in the State, except that which is permitted pursuant to Title 13, Chapter 33, shall only be conducted by licensed responsible parties who operate in compliance with, and meet the terms of, the Act and this Article. Event wagers, except those which are permitted pursuant to Title 13, Chapter 33, shall only be accepted from persons within the State pursuant to the Act and this Article.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021.

Ariz. Admin. Code § R19-4-103 Power and Authority

A. The Department reserves all powers, duties, and authority granted to it by the Act and in this Article.

B. As a condition of holding a license, all licensees agree to be subject to State jurisdiction for purposes of compliance with, and enforcement of, the Act and this Article.

C. The Department shall monitor licensees, audit compliance with this Act and Article, and investigate suspected violations of any provision in the Act or this Article and may, at any time:

1. Access and inspect all or any part of each event wagering system;

2. Access and inspect kiosks;

3. Access, review, and/or copy all books, records, and/or data maintained by a licensee related to event wagering in the State; and

4. Inspect all or any part of an event wagering facility or server location.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021.

Ariz. Admin. Code § R19-4-104 License Categories

A. Event wagering employees shall have obtained a license from the Department prior to commencing employment or performing the duties of the position. Event wagering employees include those persons who are primary management officials responsible for event wagering in the State, those persons in the State who accept wagers, redeem tickets, and/or handle monies, and any additional persons the Department determines meet the definition in A.R.S. § 5-1301(5). The event wagering employee license shall be in effect for two years and the employee shall have obtained a renewal from the Department thereafter as a condition of continuing employment.

B. Event wagering operators are subject to the licensing requirements of the Act and this Article. Event wagering operators shall have obtained from the Department a renewal of the license every five years thereafter before continuing to operate event wagering. Pursuant to A.R.S. § 5-1304(A)(1-2), if a qualified event wagering operator designates a designee, the designee shall be subject to licensure including any fees and the event wagering operator shall not be subject to licensure including any fees.

C. Designees appointed by an event wagering operator shall have obtained a license from the Department prior to providing event wagering services. The designee license shall be in effect for five years and the designee shall have obtained a renewal from the Department thereafter as a condition of continuing operation. A designee shall maintain a designation from a qualified event wagering operator in order to provide event wagering services. If a designee operates event wagering, including developing and operating event wagering systems and platforms and providing odds, lines, and global risk management, a separate management services provider license is not required.

D. Limited event wagering operators are subject to the licensing requirements of the Act and this Article. Limited event wagering operators shall have obtained from the Department a renewal of the license every two years thereafter before continuing to operate event wagering. An additional wagering facility shall be under contract with a qualified racetrack enclosure in order to apply, hold, and/or renew a limited event wagering license.

E. Management services providers are subject to the licensing requirements of the Act and this Article. Management services providers shall have obtained from the Department a renewal of the license every two years thereafter before continuing to manage event wagering services.

F. Suppliers, including ancillary suppliers, are subject to the licensing requirements of the Act and this Article. Suppliers, including ancillary suppliers, shall have obtained from the Department a renewal of the license every two years thereafter before continuing to provide goods and/or services.

G. On a quarterly basis, responsible parties shall provide to the Department a list of the names and addresses of their suppliers, including ancillary suppliers, who provide goods and/or services for event wagering in the State.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021. Amended by final exempt rulemaking at 28 A.A.R. 919, effective 4/15/2022.

Ariz. Admin. Code § R19-4-105 Procedures for Licensing

A. Every applicant for a license shall submit a complete application in the form prescribed by the Department, which shall include all information and documentation required by the Department, along with the applicable fees.

1. Responsible parties shall submit a non-refundable application fee. The application fee shall be credited towards the initial license fee if the applicant is granted a license.

2. Event wagering employees and suppliers shall submit a non-refundable license fee.

B. The fees for licensure shall be the following:

| 1. | Event Wagering Operator | | --- | --- | | a. Application Fee | $ 100,000 | | b. Initial License | $ 750,000 | | c. Annual License Fee | $ 150,000 | | 2. | Designee | | a. Application Fee | $ 100,000 | | b. Initial License | $ 750,000 | | c. Annual License Fee | $ 150,000 | | 3. | Limited Event Wagering Operator | | a. Application Fee | $ 1,000 | | b. Initial License | $ 10,000 | | c. Annual License Fee | $ 5,000 | | 4. | Management Services Provider | | a. Application Fee | $ 1,000 | | b. Initial License | $ 10,000 | | c. Annual License Fee | $ 5,000 | | 5. | Supplier | | a. Initial License | $ 1,500 | | b. Renewal | $ 500 | | 6. | Ancillary Supplier | | a. Initial License | $ 1,500 | | b. Renewal | $ 500 | | 7. | Employee | | a. Initial License | $ 250 | | b. Renewal | $ 125 |

C. Within 180 days of being issued a license, the responsible party shall conduct event wagering in the State or the license shall revert to the Department.

D. Within five days following its receipt of a complete application for licensure of an event wagering employee or supplier, the Department shall issue a temporary license to the applicant unless the Department does not believe that the applicant will qualify for licensure. If the employee or supplier does not receive a response from the Department regarding the approval or denial of the applicant's temporary license by the close of the fifth day following the receipt of a complete application for licensure, then the applicant's temporary license shall be deemed approved by the Department. The results of a Department background investigation shall not be required prior to the issuance of a temporary license. The temporary license shall become void and be of no effect upon either the issuance of licensure or upon the issuance of a notice of denial.

E. Responsible parties shall require all event wagering employees in a retail wagering area to wear in plain view identification cards issued by the Department. The identification cards will include a photograph, first and last name, an identification number unique to the license, the Department's seal or signature, and a date of expiration.

F. Responsible parties shall remit the annual license fee to the Department within 12 months of the date in which they were issued a license, and annually thereafter.

G. If a responsible party has remitted each of the annual license fees and is applying for license renewal, the responsible party shall submit their completed renewal application to the Department at least 30 days prior to the expiration date of their license. Responsible parties may continue to be engaged under their expired license until action is taken on the renewal application by the Department.

H. If event wagering employees or suppliers are applying for license renewal, event wagering employees and suppliers shall submit their completed renewal application along with the license renewal fee to the Department at least 30 days prior to the expiration date of their license. Event wagering employees and suppliers may continue to be engaged under their expired license until action is taken on the renewal application by the Department.

I. As part of the reporting of material changes required by A.R.S. § 5-1305(E), after an applicant other than an event wagering employee is licensed, it shall file a report of each change of its principals with the Department. Each new principal shall file a complete application within 30 days after appointment or election. The license shall remain valid unless the Department denies the application.

J. The Department may revoke a license if the responsible party fails to continue operations.

J. K. Applicants and licensees may appeal a summary suspension, or a determination by the Department of a revocation, suspension, or denial of licensure.

K. L. An applicant for licensure or renewal that wishes to withdraw an application shall submit a request to the Department in writing. The application shall not be considered withdrawn without the written permission of the Department.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021. Amended by final exempt rulemaking at 28 A.A.R. 919, effective 4/15/2022.

Ariz. Admin. Code § R19-4-106 Allocation for Applicants

A. Once licenses initially become available, the Department will announce an initial application period of no less than ten (10) days in which to accept license applications and supplemental allocation applications. Within five (5) ten (10) days of the conclusion of the initial application period, the Department will evaluate all applicants under the criteria established in .B, .C, and/or .D to determine who is qualified for licensure and will provide written notification to the applicants that were deemed initially qualified. If there are more qualified applicants than licenses available, the Department shall review each supplemental allocation application and shall make a determination within eight (8) ten (10) days of the initial licensure qualification determination and will provide written notification to the applicants that were selected for allocation.

B. For a tribe (to include its wholly owned entity, designee, or management services provider relevant to the initial application) to be qualified for an event wagering operator license:

1. It must meet the definition of an event wagering operator in A.R.S. § 5-1301(7)(b) and the requirements of A.R.S. § 5-1304(A)(2), (B) and (C).

2. It and its event wagering employees must submit to background checks under A.R.S. § 5-1302(C) and (E), must not be prohibited participants under A.R.S. § 5-1301(16), and must not have a criminal history or other grounds sufficient to disqualify the applicant apparent on the face of the application as noted in A.R.S. § 5-1305(C), which will be determined by the factors listed in A.R.S. § 5-1305(B)(1-5).

C. For a professional sports team (to include the PGA operator, the NASCAR promoter, designee, or management services provider relevant to the initial application) to be qualified for an event wagering operator license:

1. It must meet the definition of an event wagering operator in A.R.S. § 5-1301(7)(a) and the requirements of A.R.S. § 5-1304(A)(1), (B) and (C).

2. It and its event wagering employees must submit to background checks under A.R.S. § 5-1302(C) and (E), must not be prohibited participants under A.R.S. § 5-1301(16), and must not have a criminal history or other grounds sufficient to disqualify the applicant apparent on the face of the application as noted in A.R.S. § 5-1305(C), which will be determined by the factors listed in A.R.S. § 5-1305(B)(1) - (5).

D. For a racetrack enclosure or additional wagering facility (to include management services provider) to be qualified for a limited event wagering operator license:

It must meet the definition of a limited event wagering operator in A.R.S. § 5-1301(8) and the requirements of A.R.S. § 5-1307(A), (B) and (C).

2. It and its event wagering employees must submit to background checks under A.R.S. § 5-1302(C) and (E), must not be prohibited participants under A.R.S. § 5-1301(16), and must not have a criminal history or other grounds sufficient to disqualify the applicant apparent on the face of the application as noted in A.R.S. § 5-1305(C), which will be determined by the factors listed in A.R.S. § 5-1305(B)(1) - (5).

E. If more than 10 tribes and/or more than 10 professional sports teams qualify for an event wagering operator license, the Department shall allocate the licenses among the qualifying tribes and/or qualifying professional sports teams and ensure an equal opportunity for all qualified applicants required by A.R.S. § 5-1305(C) by considering the following criteria (which may include information from a wholly owned entity, designee, management services provider, affiliate, or other partner):

1. Business ability, experience, and track record of the event wagering operator applicant, designee applicant, and/or management services provider applicant, both local and international, which establishes the ability to create and maintain a successful event wagering operation;

2. Experience and track record of the event wagering operator applicant, designee applicant, and/or management services provider, both local and international, in the operation of gaming or related activity;

Contributions to the surrounding tribal, local, or State community to include:

a. Consideration of the size of the community impacted, or to be impacted in the future;

b. The extent to which the community has already benefited from gaming, or may do so in the future; and

c. The use of revenue to assist the community in the past, and how event wagering revenue will assist in the future;

4. Good standing in terms of obtaining and maintaining licenses/permits in all markets;

5. Demonstrated vision, willingness, and commitment to make local investments in the State, or on tribal lands, including prior investments in other states, if applicable;

6. Demonstrated culture of player protection, investments in player protection, and an effective governance program;

Responsiveness, approachability, and involvement of local management;

8. Competency to conduct event wagering, including proposed internal controls, and the maximization of privilege fees to the State;

9. Ability to begin operating event wagering within six months after obtaining the license;

10. Demonstrated financial stability, resources, integrity, and business ability and acumen;

11. Demonstrated regulatory compliance and cooperation with regulatory authorities;

12. The lack of opportunity to benefit from event wagering type activity in some manner or location without a license;

13. Whether the issuance of the license will provide benefits to other qualified applicants through partnerships or other opportunities;

14. Increased employment and enhancement of the labor market in the State or on tribal lands;

15. A preference for applicants who are located, headquartered, and/or own or operate a physical facility in the State, or applicants who will use a designee or management services provider, or are partners with an entity located, headquartered, and/or who own or operate a physical facility in the State;

For tribal licenses, a preference that licenses be distributed among non-gaming tribes, rural gaming tribes, and to tribes located relatively near metropolitan areas in the State;

17. Whether the event wagering operator applicant would appeal to a unique or unaddressed market or introduce a unique brand or affiliate;

18. Whether the issuance of a license to the event wagering operator applicant would increase the patron base in the State; and

19. Any other criteria, or the weighting of them, deemed by the Department to be in the best interests of the State.

F. If more than 10 racetrack enclosures or additional wagering facilities qualify for a limited event wagering operator license, the Department shall allocate the licenses and ensure an equal opportunity for all qualified applicants required by A.R.S. § 5-1305(C) by considering the following criteria (which may include information from a management services provider, affiliate, or other partner):

1. Business ability, experience, and track record of the limited event wagering operator applicant and/or management services provider applicant, both local and international which establishes the ability to create and maintain a successful limited event wagering operation;

2. Experience and track record of the limited event wagering operator applicant and/or management services provider, both local and international, in the operation of pari-mutuel wagering, gaming, or related activity;

3. Good standing in terms of obtaining and maintaining licenses/permits in all markets;

4. Demonstrated vision, willingness, and commitment to make local investments in the State including prior investments in other states, if applicable;

Demonstrated culture of player protection, investments in player protection, and an effective governance program;

6. Responsiveness, approachability, and involvement of local management;

Competency to conduct event wagering, including proposed internal controls, and the maximization of privilege fees to the State;

8. Ability to begin operating event wagering within six months after obtaining the license;

9. Demonstrated financial stability, resources, integrity, and business ability and acumen;

10. Demonstrated regulatory compliance and cooperation with regulatory authorities;

11. Increased employment and enhancement of the labor market in the State, as well as enhancement of other racing enterprises in the State;

12. A preference for locations with a large, unique, or unaddressed market;

13. Whether the limited event wagering operator applicant would introduce a unique brand or affiliate;

14. Whether the issuance of a license to the limited event wagering operator applicant would increase the patron base in the State; and

15. Any other criteria, or the weighting of them, deemed by the Department to be in the best interests of the State.

G. Any applicant deemed qualified for licensure, or who was allocated a license, must be deemed suitable for licensure under A.R.S. § 51305.

H. In the event one or more licenses become available, the Department will announce an application period and follow the allocation procedures in R19-4-106.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021. Amended by final exempt rulemaking at 28 A.A.R. 919, effective 4/15/2022.

Ariz. Admin. Code § R19-4-107 Event Wagering Facility Location

A. An event wagering operator, designee, or limited event wagering operator shall provide written notice to the Department of the proposed physical location of the event wagering facility, or of any proposed changes to the location of an existing event wagering facility. The notice shall be provided to the Department at least 60 days prior to the intended opening date of the new or relocated event wagering facility so that the Department may determine whether the proposed physical location meets the requirements of the Act.

B. The Department shall provide a written response within 30 days of receipt of the notice.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021. Amended by final exempt rulemaking at 28 A.A.R. 919, effective 4/15/2022.

Ariz. Admin. Code § R19-4-108 Retail Wagering Area Determination

A. The responsible party authorized to operate an event wagering facility shall determine and document the retail wagering area or areas of its facility. The determination and documentation shall be provided to the Department prior to the pre-operation inspection required under R19-4-109(B).

B. Any changes to the retail wagering area or areas shall be submitted to the Department in writing for review and approval at least 30 days prior to implementation.

C. The Department shall issue a letter approving the determination or otherwise delineating the retail wagering area or areas.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021.

Ariz. Admin. Code § R19-4-109 Retail Wagering Area Inspection

A. A responsible party may not operate a retail wagering area without the written approval of the Department.

B. Prior to the initial opening of the retail wagering area, or any changes to the retail wagering area approved under R19-4-108(B), the Department shall conduct a pre-operation inspection to verify that the proposed retail wagering area complies with the applicable requirements of the Act and this Article. The Department shall send the results of the inspection in writing within seven days of the inspection and shall approve the opening of the retail wagering area if it determines that the area meets the required compliance.

C. If the Department determines that the retail wagering area does not comply with the applicable requirements of the Act and this Article, a non-compliance letter shall be sent within seven days of the inspection that shall set forth the matters of non-compliance upon which the Department bases its decision. If the matters of non-compliance identified by the Department are resolved, the Department shall approve the opening of the retail wagering area. The Department's decision to deny opening of a retail wagering area shall become final 60 days after the pre-operation inspection if the issues of non-compliance identified by the Department are not resolved.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021.

Ariz. Admin. Code § R19-4-110 Responsible Advertising

A. Advertising, marketing, and promoting of event wagering shall not target, or otherwise be of a kind that specifically appeals to, persons under 21 years of age.

B. Advertising, marketing, and promoting of event wagering shall not be misleading or contain false information.

C. Advertising, marketing, and promotion of event wagering shall not promote irresponsible or excessive participation in event wagering, or suggest that social, financial, or personal success is guaranteed by engaging in event wagering.

D. Advertising, marketing, and promoting of event wagering shall not occur at event venues where most of the audience at most of the events at the venue is reasonably expected to be under 21 years of age.

E. Event wagering messages, including logos, trademarks, or brands, shall not be used, or licensed for use, on clothing, toys, games, or game equipment intended primarily for persons under 21 years of age.

F. Event wagering shall not be promoted or advertised in college or university-owned news assets, including digital news assets.

G. Event wagering shall not be promoted or advertised on college or university campuses, except for generally available advertising, including television, radio, and digital advertising.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021. Amended by final exempt rulemaking at 28 A.A.R. 919, effective 4/15/2022.

Ariz. Admin. Code § R19-4-111 Internal Control System

A. Responsible parties shall operate event wagering, including each event wagering system, retail wagering area, kiosk, and/or event wagering platform, pursuant to a written internal control system approved by the Department. The internal control system shall be designed to reasonably assure that for the purposes of event wagering in the State:

1. Assets are safeguarded and accountability over assets is maintained;

2. Liabilities are properly recorded and contingent liabilities are properly disclosed;

3. Financial records including records relating to revenues, expenses, assets, liabilities, and equity/fund balances are accurate and reliable;

Transactions are performed in accordance with the responsible party's general or specific authorization;

Access to assets is permitted only in accordance with the responsible party's specific authorization;

6. Recorded accountability for assets is compared with actual assets at frequent intervals and appropriate action is taken with respect to any discrepancies; and

7. Functions, duties, and responsibilities are appropriately segregated and performed in accordance with sound practices by qualified personnel.

B. The internal control system shall include:

1. A description of, and the inter-relationships and dependencies of, the event wagering system, hardware, software, and all integrated supplier modules;

2. A description of, and physical/logical security for, event wagering servers;

3. Procedures for verifying geolocation services and establishing a patron's geographic location;

4. A detailed security and surveillance plan;

5. Procedures for the use, access, and security of all keys utilized in the operation of event wagering;

6. A description of the procedures for responding to a failure of the event wagering system and/or event wagering platform;

Automated and manual risk management procedures;

8. Change management procedures;

9. Procedures for identifying and reporting fraudulent and/or suspicious wagering activity, including identifying unusual betting patterns and reporting them to integrity monitoring providers;

10. Procedures for the mitigation of risk of fraud and cheating;

11. Bank Secrecy Act procedures;

12. Procedures for advertising and marketing in a responsible manner;

Procedures to mitigate problem gambling and curtail compulsive gambling;

14. A responsible gaming training and education program;

Procedures for the identification, notice, and removal of self-excluded or barred persons from event wagering facilities and event wagering platforms;

16. Procedures for selling tickets, cashing tickets, canceling event wagers, voiding tickets, handling lost tickets, and issuing tax or other required forms;

17. Procedures for, and definition of, obvious errors;

18. Procedures for setting and moving lines;

Procedures for the reconciliation of assets and documents contained in a cashier's drawer, kiosk, or player account, including drop, fill, and count procedures;

20. Procedures for the verification of player identification;

21. Procedures for the issuance and acceptance of promotional and/or bonus credit for event wagers;

22. Procedures for handling patron disputes;

23. Procedures for creating, updating, adjusting, and closing player accounts;

24. Procedures for internal audit;

25. Procedures for the retention of event wagering records;

26. Procedures for the disposition of claims arising from personal injury or property damage, loss of funds, and/or compromised personal or financial information alleged to have been suffered by patrons; and

27. Procedures for the identification and prohibition of prohibited participants from participation in event wagering.

C. Responsible parties shall have obtained written approval of the internal control system, or any changes to it, from the Department prior to implementation. The Department shall review the system, or any changes, and issue a written approval or disapproval of the system.

1. Prior to the commencement of operations in the State, the responsible party shall have obtained written approval from the Department for the internal control system.

2. After the commencement of operations in the State, the responsible party shall submit any changes to the internal control system to the Department for review and approval. If, after five days, the responsible party has not received a response from the Department regarding the changes to the internal control system, then the changes shall be deemed approved by the Department.

D. For event wagering under the Act, responsible parties shall maintain:

Accurate, complete, legible, and permanent records of all transactions in a manner suitable for audit under the standards of the American Institute of Certified Public Accountants;

General accounting records using a double entry system of accounting with transactions recorded on a basis consistent with generally accepted accounting principles;

3. Detailed supporting and subsidiary records;

4. Detailed records identifying revenues, expenses, assets, liabilities and fund balances or equity;

5. All records required by the internal control system including, but not limited to, those relating to any event wagering activity authorized by the Act;

6. Journal entries;

7. Detailed records sufficient to accurately reflect gross income and expenses relating to its operations;

8. Detailed records of any reviews or audits, whether internal or otherwise, performed in addition to the annual audit required in R19-4-111(E), including, but not limited to, management advisory letters, agreed upon procedure reviews, notices of non-compliance, and reports on the internal control system; and

9. Records of any proposed or adjusting entries made by an independent certified public accountant.

E. Financial statements, or a specific element financial statement related to event wagering operations in the State, shall be audited, not less than annually at its fiscal year end, by an independent certified public accountant at the expense of the responsible party. The audit shall also include, or be supplemented with, an attestation by the auditor that adjusted gross event wagering receipts are accurately reported.

F. The Department shall be authorized to confer with the independent certified public accountant at the conclusion of the audit process and to review all the independent certified public accountant's work papers and documentation relating to the responsible party.

G. Responsible parties shall notify the Department in writing of their fiscal year end and any changes to the fiscal year end within 10 days after deciding on a fiscal year end or a change to that year end. If the responsible party changes its fiscal year end, it may elect either to prepare financial statements for a short fiscal year or for an extended fiscal year, but in no event shall an extended fiscal year extend more than 15 months.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021.

Ariz. Admin. Code § R19-4-112 Privilege Fee

A. As per A.R.S. § 5-1318(A), the established fee for the privilege of operating event wagering shall be 8% of adjusted gross event wagering receipts for retail operations and 10% of adjusted gross event wagering receipts for mobile operations.

B. The calculation of adjusted gross event wagering receipts shall be reported in the format required by the Department. The responsible party shall submit all necessary supporting documentation as directed by the Department to confirm the calculation of adjusted gross event wagering receipts. The report and supporting documentation shall be submitted to the Department no later than the 25th day of each month for the preceding month.

1. Fees paid pursuant to the Act and this Article shall be paid to the Department in the manner prescribed by the Department.

2. Following the Department's receipt of the annual audit pursuant to A.R.S. § 5-1319, any overpayment of fees by the responsible party shall be credited to the responsible party's next monthly fee payment. Any underpayment of fees shall be paid by the responsible party within 30 days of the Department's receipt of the annual audit.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021.

Ariz. Admin. Code § R19-4-113 Reserve Requirements and Bank Accounts

A. Responsible parties shall maintain a reserve in the form of cash, cash equivalents, payment processor reserves, payment processor receivables, an irrevocable letter of credit, a bond, or any combination of the aforementioned, in an amount that is the greater of either $500,000 or the amount that is necessary to ensure the responsible party's ability to cover all outstanding event wagering liability and the funds held for player accounts.

B. The responsible party shall maintain bank account or accounts for funds in player accounts that are separate and distinct from all other corporate accounts, unless otherwise agreed to by the Department. The account or accounts for player funds shall be used for all player deposits, receipts, and disbursements relating to event wagering under the Act. The responsible party shall utilize a software accounting system that separates and distinguishes all receipts and disbursements regarding or in any way relating to event wagering activity under the Act, the operation, and the construction or operation of event wagering facilities.

C. The responsible party shall notify the Department no less than one hundred eighty (180) days prior to ceasing operations and shall provide a written plan to settle any outstanding liabilities and/or refund player account funds.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021. Amended by final exempt rulemaking at 28 A.A.R. 919, effective 4/15/2022.

Ariz. Admin. Code § R19-4-114 League Data

A. The governing body of a sports league, organization or association, or other authorized entity that maintains official league data may notify the Department that official league data for proposition wagers, in-play wagers, and in-game wagers, which may be placed before or after a sports event has begun, is available for responsible parties.

B. The Department shall notify responsible parties within seven days of receipt of the notification from the governing body of a sports league, organization or association, or other authorized entity that maintains official league data of the availability of official league data.

C. Official league data offered to responsible parties by the governing body of a sports league, sports organization, or sports association or other authorized entity that maintains official league data for the purposes of event wagering shall be offered on commercially reasonable terms.

D. Responsible parties may submit a written request to the Department for the use, or continued use, of non-official league data within 60 days of receiving the notification from the Department regarding the availability of official league data. The request shall include a detailed analysis of the necessity of the use, or continued use, of non-official league data. Responsible parties may use a non-official league data provider during the 60 day period and the pendency of the Department's consideration of a responsible party's request.

E. Within seven days of receipt of the written request from a responsible party to utilize a non-official league data provider, the Department shall issue a written approval or disapproval.

F. The Department shall publish a list of official league data providers and approved non-official league data providers on its website.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021.

Ariz. Admin. Code § R19-4-115 Integrity Monitoring

A. Responsible parties shall utilize an integrity monitoring service.

B. All integrity monitoring providers shall share information with each other and shall disseminate all reports of unusual and/or suspicious wagering activity to their members. Responsible parties shall review such reports and notify their integrity monitoring provider whether they have experienced similar activity.

C. The integrity monitoring providers shall notify the Department and the appropriate sport's governing body of any suspicious wagering activity as soon as practically possible.

D. Responsible parties receiving a report of suspicious wagering activity shall be permitted to suspend wagering on events related to the report but shall not cancel related event wagers until receiving written approval from the Department.

E. If a sports governing body submits a written request to the Department requesting access to information relating to suspicious wagering activity, responsible parties shall comply with the request pursuant to A.R.S. § 5-1316.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021.

Ariz. Admin. Code § R19-4-116 Servers and Cloud Storage

A. Responsible parties shall only accept event wagers on a server or servers located in the State. Responsible parties shall provide the Department with the physical location of each server used to conduct event wagering. The server or servers shall have physical and logical security as provided in the responsible party's internal control system.

B. Upon written approval by the Department, the responsible party may utilize cloud storage for duplicate transactional wagering data and/or for data not related to transactional wagering.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021. Amended by final exempt rulemaking at 28 A.A.R. 919, effective 4/15/2022.

Ariz. Admin. Code § R19-4-117 Geofencing

A. The responsible party shall utilize a geofence system to dynamically monitor the physical location of patrons attempting to place wagers on event wagering platforms.

B. The geofence system shall perform a geolocation check prior to the placement of an event wager in an authorized session.

C. The geofence system shall perform recurring geolocation checks throughout a patron's authorized session.

D. If a geolocation check determines that a patron is not located in the State, the patron shall be blocked from placing event wagers on the event wagering platform.

E. The responsible party or the geofence provider shall implement a means to notify a patron of a geolocation failure.

F. The geofence provider shall provide to the Department access to real-time geofence data.

G. Attempts to place wagers from unauthorized locations shall be entered into a log by the geofence provider and/or the responsible party. The log shall be available to the Department upon request.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021.

Ariz. Admin. Code § R19-4-118 Technical Standards

Event wagering systems shall comply with Gaming Laboratories International (GLI) Standard Series GLI-33: Standards for Event Wagering Systems, and all appendices, version 1.1, dated May 14, 2019, but not including any later amendments or additions.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021.

Ariz. Admin. Code § R19-4-119 Systems and Platforms

A. An event wagering system shall be designed to ensure the integrity and confidentiality of all patron communications, security and confidentiality of patron data including personal and financial information, and the proper identification of the sender and receiver of all communications.

B. Each event wagering operator may only have one event wagering system, whether its own or as provided by a management services provider which may include one separate and distinct set of hardware, software, firmware, communications technology, or other equipment to allow patrons to place event wagers on an event wagering platform and, if applicable, one set of hardware, software, firmware, communications technology, or other equipment to allow patrons to place event wagers at an event wagering facility.

C. Responsible parties may utilize one event wagering platform. Responsible parties may utilize a second event wagering platform only upon approval by the Department. In no event shall a responsible party utilize more than two event wagering platforms.

D. In order to operate a second event wagering platform, responsible parties shall submit a written request to the Department. The Department shall exercise its discretion in its consideration of the written request for a second event wagering platform. Factors the Department may consider in reaching its determination include:

1. Numbers of responsible parties and authorized event wagering platforms;

2. The introduction of a unique brand or affiliate;

3. The expansion of the patron base in the State;

4. Market size, scope, development, and growth;

5. Advances in technology; and

6. Other factors deemed relevant by the Department or the responsible party.

E. Within 30 days of receipt of the written request from a responsible party to utilize a second event wagering platform, the Department shall issue a written approval or disapproval.

F. Each event wagering platform shall display the name, brand, and/or logo of the responsible party and/or affiliate.

1. If the responsible party changes the name, brand, and/or logo of its event wagering platform, it shall submit the changes to the Department prior to implementation.

2. The responsible party shall not terminate use of an event wagering platform without prior written approval from the Department.

G. Responsible parties shall establish test accounts for the Department to be used to test the various components and operations of the event wagering system.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021.

Ariz. Admin. Code § R19-4-120 Event Wagering System Testing

A. An independent test laboratory shall test to determine whether an event wagering system complies with all applicable technical standards referenced in the Act and this Article, including, if applicable, an initial geofence system test to verify that event wagers can only be accepted from persons located within the State.

B. The responsible party shall provide the independent test laboratory all information necessary for the independent test laboratory to render its opinion.

C. The Department shall have secure access to the independent test laboratory certification report that contains the results of the testing.

D. The Department reserves the right to require additional testing.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021. Amended by final exempt rulemaking at 28 A.A.R. 919, effective 4/15/2022.

Ariz. Admin. Code § R19-4-121 Event Wagering System Shipping (Retail and Kiosk)

Responsible parties and/or suppliers shall provide the Department 24 hours advanced notice of any shipment or delivery of a kiosk and/or shipment or download of event wagering system software.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021. Amended by final exempt rulemaking at 28 A.A.R. 919, effective 4/15/2022.

Ariz. Admin. Code § R19-4-122 Event Wagering System Installation

A. The responsible party shall notify the Department in writing at least 10 days prior to the tentative date when the responsible party intends to place an event wagering system into use. The responsible party and Department shall then agree upon a firm date and time for testing.

B. The Department's testing of an event wagering system shall be conducted to determine compliance with the Act and this Article. These tests shall include, but need not be limited to:

1. Verifying event wagering system software;

2. For retail and kiosks, verifying equipment serial numbers;

3. Verifying that all applicable event wagering system software and/or hardware has been certified by an independent test laboratory;

4. Verifying system reporting processes; and

Verifying physical and logical security.

C. If approval is denied, the Department shall provide written notice to the responsible party detailing the reasons for the denial no later than three days after the completion of testing.

D. For kiosks, the Department shall affix an identifying approval seal or equivalent when it is approved for use.

E. For retail and kiosks, the Department shall ensure that event wagering system equipment and event wagering activity under the Act have the required surveillance coverage.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021.

Ariz. Admin. Code § R19-4-123 Change Management

Responsible parties shall implement a change management process that details evaluation procedures for all updates and changes to an event wagering system and event wagering platforms. The change management process shall address at a minimum:

A clear and transparent framework to assist in managing deployments and other changes in the regulated live production environment.

2. A description of the process, to include roles in the change management process, handling requests for change, and the change classification categories.

3. The categories of requests for change which shall be based on their impact to the security, integrity, recovery, confidentiality, accountability, and availability of an event wagering system:

a. High impact changes which have a high impact on regulated components or reporting of the event wagering system. Responsible parties shall not implement these changes without the written approval of the Department. The Department shall provide a written response to the responsible party within five days of the notification. The Department will determine if additional testing or certification is required by an independent test laboratory. Examples include:

i. Implementation of a new wagering feature or a change which impacts wagering logic;

ii. A change impacting required regulatory reports or data used for financial reconciliation;

iii. A change implemented by the responsible party that impacts geolocation services; or

iv. A change impacting the handling or storage of personally identifiable information.

b. Low impact changes. Responsible parties may implement these changes with prior notification to the Department. Examples include:

i. Firewall rule changes;

ii. Database maintenance;

iii. Changes to the physical location of backup data;

iv. Any change or addition of physical hardware component or components; or

v. Changes to non-wagering logic components.

c. No impact changes. Responsible parties may implement these changes without prior notification to the Department. Examples include:

i. Installation or changes to backup software and/or hardware;

ii. Adding or removing users;

iii. Database maintenance that modifies or deletes non-critical data;

iv. Installation of operating system security patches; or

v. Background images, color schemes, or similar ancillary front-end updates.

vi. Emergency changes. Responsible parties may implement these changes immediately without prior notification to the Department to deal with open threats or liabilities. Responsible parties shall notify the Department as soon as practically possible of the necessity of the emergency and its resolution.

4. The use of a change management log, which shall include at a minimum:

a. Date and time that a change is internally approved for release;

b. Components to be changed;

c. Details of the change;

d. Anticipated release date of the change;

e. Category of the change; and

f. Name of the authorized employee or employees.

Implementation procedures to include notification to system users, scheduling, project planning, and recovery.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021.

Ariz. Admin. Code § R19-4-124 Self-Monitoring of Critical Components

Event wagering systems shall perform a self-authentication process on all critical components contained on an event wagering system upon initial installation of the software and every 24 hours thereafter.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021.

Ariz. Admin. Code § R19-4-125 Event Wagering System Communication

If an event wagering system is unable to accept a wager or validate a ticket for more than two hours, the responsible party shall notify the Department as soon as practically possible.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021.

Ariz. Admin. Code § R19-4-126 Event Wagering System Recertification

A. At least once every 15 months, the event wagering system shall be submitted to an independent test laboratory for recertification under R19-4-120 . Recertification shall not be required if the event wagering system did not have any updates or changes during the previous 15 months. If a change referenced in R19-4-123(3)(a) requires comprehensive testing of the event wagering system by an independent test laboratory, this recertification shall be deferred for 15 months from the date of testing.

B. The independent test laboratory's certification report shall be submitted to the Department no later than three days after the recertification is complete. The Department shall test the recertified event wagering system as per R19-4-122(B) at an agreed upon date and time.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021. Amended by final exempt rulemaking at 28 A.A.R. 919, effective 4/15/2022.

Ariz. Admin. Code § R19-4-127 Integrity and Security Assessment

A. The responsible party shall perform an integrity and security assessment of the event wagering system within 120 days after the commencement of operations, and annually thereafter. The assessment shall be conducted by an independent integrity and security assessment professional. The scope of the assessment shall include, at a minimum, the following:

A vulnerability assessment of mobile platforms, mobile applications, internal, external, and wireless networks with the intent of identifying vulnerabilities of all devices, platforms, and applications connected to or present on the networks;

2. A penetration test of all mobile platforms, mobile applications, internal, external, and wireless networks to confirm if identified vulnerabilities of all devices, platforms, and applications are susceptible to compromise;

3. A policy and procedures review against the current ISO 27001 standard or another similar standard approved by the Department;

4. A review of the firewall rules to verify the operating condition of the firewall and the effectiveness of its security configuration; and

5. Any other specific criteria or standards for the integrity and security assessment as required by the Department.

B. The full independent integrity and security assessment professional's report on the assessment shall be submitted to the Department no later than 30 days after the assessment is completed and shall include the following:

1. Assessment procedures and scope;

2. Name and company affiliation of the individual or individuals who conducted the assessment;

3. Date of assessment;

4. Findings;

5. Recommended corrective action, if applicable; and

6. The responsible party's response to the findings and recommended corrective action.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021. Amended by final exempt rulemaking at 28 A.A.R. 919, effective 4/15/2022.

Ariz. Admin. Code § R19-4-128 Forms of Payment

A. Payment for event wagering activity or for deposit into a player account shall be made by cash, cash equivalent, electronic funds transfer, credit card, debit card, check, wire transfer, winnings, and/or promotional or bonus credit. Other forms of payment may be utilized upon written approval of the Department.

B. In the retail wagering area, the responsible party shall not allow a patron to conduct an electronic benefit transfer card transaction from a program intended to provide temporary assistance for needy families pursuant to A.R.S. § 46-297.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021.

Ariz. Admin. Code § R19-4-129 Events and Wagers

A. The responsible party shall submit a catalogue to the Department of the events on which it intends to accept wagers and types of wagers it intends to offer. The catalogue and any changes shall be submitted to the Department prior to implementation.

B. The responsible party shall submit a written request to the Department for an event not previously authorized. The request shall include a detailed description of the event and its governing body so that the Department may determine:

1. How wagers will be placed and how winning wagers will be determined;

2. How the event will be conducted and supervised;

3. Whether any wager could affect the outcome of the event;

4. How the outcome of the event will be verifiable and generated through a reliable and independent process; and

5. How the event would be conducted in compliance with any applicable laws.

C. The responsible party shall submit a written request to the Department for a wager type not previously authorized. The request shall include a detailed description of the wager type so that the Department may determine:

1. How the wager will be placed and how winning will be determined;

2. Whether the wager could affect the outcome of an event; and

3. How the wager could be made in compliance with any applicable laws.

D. Within seven days of receipt of the written request for an event and/or wager type, the Department shall issue a written approval or disapproval to the responsible party.

E. The Department shall publish a list of authorized events and wager types on its website.

F. The Department may prohibit a particular event or wager type; provided that:

1. The Department shall not prohibit, and it may authorize, event wagers placed on the final outcomes of live in-person poker tournaments played by living individuals located in the same physical room, such as a poker room; and

2. Except as provided in R19-4-129(F)(1), activities that present the player with a user interface depicting spinning reels or games authorized to the tribes pursuant to the 2021 Amended and Restated Compact are prohibited.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021. Amended by final exempt rulemaking at 28 A.A.R. 919, effective 4/15/2022.

Ariz. Admin. Code § R19-4-130 Wager Rules

A. All event wagering shall be transacted through an event wagering system. In the event of a computer or power failure, no tickets shall be manually written.

1. Anonymous event wagers shall only be accepted in the retail wagering area or at a kiosk; and

2. Mobile event wagers shall only be accepted from a verified player account through an event wagering platform.

B. An event wager shall not be accepted from a person who is placing the event wager for the benefit of another for compensation or is placing the event wager in violation of state or federal law.

C. An event wager shall not be accepted upon an event whose outcome has already been determined.

D. Upon acceptance of an event wager, a ticket shall be immediately issued.

E. The responsible party may cancel an accepted wager for obvious error as defined in the responsible party's internal control system.

F. Except for obvious error, the responsible party shall not unilaterally cancel any wager without prior written approval of the Department.

G. If a patron wishes to void a ticket written prior to the start of an event, and the void request is approved by the responsible party, the ticket shall be verified by the event wagering system and a refund shall be given to the patron. For printed tickets, a void designation shall be branded on the ticket.

H. Upon verification by the responsible party, winnings from player account wagers shall be immediately deposited into the player account.

I. Winnings from anonymous wagers shall be immediately payable to the patron upon validation of the ticket by an event wagering system and verification by the responsible party.

J. In the case of a computer or power failure, tickets may be manually paid. All manually paid tickets shall be marked as "paid" and entered into an event wagering system as soon as possible to verify the accuracy of the payout. All manually paid tickets shall be reviewed as part of the daily audit process.

K. A log for all manually paid tickets shall be maintained and include:

1. The unique transaction identified;

2. Date and time;

3. Amount of the payout; and

4. Employee name.

L. Winning tickets shall be honored for at least one year after the conclusion of the event or events unless otherwise approved by the Department. Redemption by mail shall be accepted and payment shall be made by the responsible party no later than 10 days after receipt.

M. Funds from abandoned tickets or vouchers shall be remitted to the Arizona Department of Revenue as required by A.R.S. § 44-307.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021.

Ariz. Admin. Code § R19-4-131 Layoff Wagers

A. The responsible party may accept event wagers placed under the Act with another responsible party. The responsible party shall inform the other responsible party accepting the event wager that the event wager is being placed and shall disclose its identity.

B. The amounts of event wagers placed with a responsible party and the amounts received by the responsible party as payments on such event wagers shall not affect the computation of the adjusted gross event wagering revenue.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021.

Ariz. Admin. Code § R19-4-132 House Rules

A. The house rules shall be conspicuously displayed in the retail wagering area and/or on the event wagering platform. House rules shall address:

1. Types of event wagers accepted;

2. Minimum and maximum event wager amounts accepted;

3. Method for calculation and payment of winning event wagers;

4. Effect of scheduling changes and/or cancelled events;

5. Process for handing incorrectly posted events, odds, or results;

6. Method of notifying patrons of odds or proposition changes;

7. Methods of funding an event wager or player account;

8. Methods for redeeming a winning event wager;

9. Lost or damaged ticket policy;

10. Process for accepting event wagers at other than posted terms;

11. Process for canceling event wagers for obvious errors, including notification;

12. Process for patrons to submit questions and/or complaints;

13. Notification of the patron dispute process; and

14. Notification of the self-exclusion process.

B. Responsible parties shall submit the house rules to the Department prior to implementation. The Department shall review the house rules and issue a written approval or disapproval of them. Any proposed changes to the house rules shall be approved by the Department prior to implementation. If, after five days, the responsible party has not received a response from the Department regarding the house rules, or any changes to them, then the house rules shall be deemed approved by the Department.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021.

Ariz. Admin. Code § R19-4-133 Player Account Creation

A. A patron may establish a player account in person or by electronic means.

B. Responsible parties shall verify a patron's age and identity before allowing that patron to utilize a player account to place event wagers.

C. Responsible parties may utilize an identity verification service provider to confirm a patron's age and identity.

D. Responsible parties shall prohibit a patron from having more than one player account and username.

E. Responsible parties shall establish and maintain each player account file with the following:

1. Patron's legal name;

2. Patron's date of birth;

3. The last four digits of the patron's social security number, the patron's driver's license number, or an equivalent identification number for a noncitizen;

4. Patron's account number or username;

5. Patron's residential address;

6. Patron's e-mail address;

7. The method used to verify the patron's identity;

The date of verification; and

Acknowledgement of event wagering terms and conditions, including any subsequent updates.

F. Responsible parties shall notify patrons of the establishment of a player account and the associated terms and conditions.

G. Responsible parties shall re-verify a patron's identification upon reasonable suspicion that the patron's identification has been compromised or the player account has been misused, or upon any suspicious activity involving the patron or player account.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021.

Ariz. Admin. Code § R19-4-134 Player Account Terms and Conditions

Player account terms and conditions shall include the following:

1. Name of the responsible party with whom the patron is entering into a contractual relationship;

2. Patron's consent to have the responsible party confirm the patron's age and identity;

3. Rules and obligations applicable to the patron with regard to allowing any other person to access or use his or her player account and being physically present in the State to place a wager;

4. Patron's consent to the monitoring and recording by the responsible party of any event wagering communication and geographic location information;

5. Privacy policy;

6. Legal age policy;

7. Rules for player account suspension;

8. Rules for dormant player accounts;

9. Rules for closing player accounts;

Availability of player account statements; and

11. The statewide problem gambling toll-free helpline telephone number, text message and website information.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021.

Ariz. Admin. Code § R19-4-135 Player Account Maintenance

A. All adjustments to a player account shall be authorized by the responsible party and periodically reviewed by an employee independent of the adjustment.

B. A patron shall be allowed to withdraw the funds maintained in his or her player account.

1. Upon verification by the responsible party, the patron's request to withdraw funds shall be honored within seven days of the request.

2. The responsible party may decline to honor a patron request to withdraw funds if the responsible party believes that the patron engaged in either fraudulent conduct or other conduct that would put the responsible party in violation of the law or this Article. In such cases, the responsible party shall:

a. Provide notice to the patron of the delay in honoring the request to withdraw funds from the player account;

b. Investigate in an expedient fashion;

c. Notify the patron of the final determination of the request to withdraw funds; and

d. Notify the Department of any investigation that confirmed fraudulent conduct.

C. The responsible party shall consider a player account to be dormant if the patron has not logged into the player account for at least three years. A dormant account shall be closed by the responsible party. Upon closure of a dormant account, the responsible party shall make reasonable efforts to contact the account holder to return any unclaimed funds as required by A.R.S. § 44-307(E).

D. After one hundred and 120 days of attempting to contact the account holder, the unclaimed funds in a dormant account shall be presumed abandoned. Responsible parties shall remit all abandoned funds to the Arizona Department of Revenue as required by A.R.S. § 44-307.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021.

Ariz. Admin. Code § R19-4-136 Promotions and/or Bonuses

A. Responsible parties may offer promotions and/or bonuses.

B. The responsible party shall submit a written notification to the Department for a promotion and/or bonus prior to implementation. The responsible party need not submit structurally similar or ongoing promotions and/or bonuses after the initial submission, unless otherwise determined by the Department.

C. The promotion and/or bonus rules shall be clear and unambiguous, and include:

1. Date and time the promotion or bonus is active and expires;

2. Rules of play;

3. Nature and value of prizes or awards;

4. Eligibility restrictions or limitations;

5. Wagering and redemption requirements, including any limitations;

6. Eligible events or wagers;

7. Cancellation requirements; and

8. Terms and conditions that are full, accurate, concise, transparent, and do not contain misleading information.

D. Promotions and/or bonuses described as free shall clearly disclose material facts, terms, and conditions.

E. Promotions and/or bonuses shall not restrict the patron from withdrawing their own funds, or withdrawing winnings from wagers placed using their own funds.

F. Responsible parties shall make the promotion or bonus rules available to eligible patrons.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021.

Ariz. Admin. Code § R19-4-137 Tournaments

A. Responsible parties may conduct event wagering tournaments. At such tournaments only events and wagers approved and authorized by the Department may be played.

B. The responsible party shall submit to the Department the rules and procedures governing the conduct and play of any event wagering tournament prior to implementation.

C. The tournament rules and procedures shall include but are not limited to:

Qualification or selection criteria which limit the eligibility of tournament patrons;

2. Regulations of the tournament (e.g., beginning and ending times, number of events, entry fee, elimination factors, cash handling procedures, etc.); and

3. Prizes to be awarded.

D. Responsible parties shall make the rules available to all tournament patrons prior to the beginning of the tournament.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021.

Ariz. Admin. Code § R19-4-138 Cashiering (Retail)

A. A cashier shall begin a shift with an imprest amount of event wagering inventory, consisting of currency and coin. No funds shall be added to or removed from the event wagering inventory during the shift except:

1. Collection of event wagers;

2. Making change for a patron buying a ticket;

3. Collection of vouchers;

4. Payment of winning tickets;

5. Payment of voided tickets;

6. Payment of vouchers; and

7. Cash transfers or miscellaneous cash transactions with appropriate documentation.

B. An event wagering inventory count sheet shall be completed and signed by the cashier and a verifying employee on a per shift basis.

The following shall be recorded on the count sheet:

1. The date, time, and shift of preparation;

2. The total amount of each denomination of currency and coin in the event wagering inventory issued to the cashier; and

3. The window number to which the cashier is assigned.

C. If the count of the inventory does not agree, the cashier and the verifying employee shall attempt to determine the cause of the variance in the count. Any variance not resolved by the cashier and the verifying employee shall be reported in writing to the responsible party. Any variance over $500 shall be reported to the Department within 72 hours. The report shall include the following:

1. The date on which the variance occurred;

2. The shift during which the variance occurred;

3. The name of the cashier;

4. The name of the verifying employee;

5. The window number; and

6. The amount of the variance.

D. If the event wagering system generated net receipts for the shift do not agree with the count sheet, the verifying employee shall record any overage or shortage. Any variance not resolved by the verifying employee shall be reported in writing to the responsible party. Any variance over $500 shall be reported to the Department within 72 hours. The report shall include the following:

1. The date on which the variance occurred;

2. The shift during which the variance occurred;

3. The name of the cashier;

4. The name of the verifying employee;

5. The window number; and

6. The amount of the variance.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021.

Ariz. Admin. Code § R19-4-139 Accounting

Responsible parties shall maintain an accounting department that is independent from the operation of event wagering. Accounting/revenue audit personnel shall perform the following:

1. Daily, for each cashier station except for kiosks, the write and payouts shall be compared to the cash proceeds/disbursements with a documented investigation being performed on all large variances (i.e., overages or shortages greater than $100 per cashier).

2. Daily, reconcile the dollar amount of player account transactions to the transaction summary report and investigate and document any variances.

3. Daily, select a random sample of five paid retail transactions from the event wagering system transaction report and trace the transaction to the customer's copy of the paid ticket.

4. Daily, for all winning retail payouts equal to or greater than $10,000 and for a random sample of 10 of all other winning retail payouts:

a. The tickets shall be recalculated and regraded using the event wagering system record of event results; and

b. The date and starting time of the event per the results report shall be compared to the date and time on the ticket and in the event wagering system transaction report.

5. Daily, for retail payouts made without event wagering system authorization at the time of payment including such payouts for contest/tournament winners, shall:

a. Trace all payouts to the event wagering system transaction report or the purged tickets report to verify authenticity of the initial event wager;

b. For payouts subsequently entered into the event wagering system by employees, compare the manual payout amount to the event wagering system amount; and

c. For payouts not entered into the event wagering system by employees, enter the payout into the event wagering system and compare the manual payout amount to the event wagering system amount. If the system is inoperative, manually regrade the ticket to ensure the proper payout amount was made.

6. Daily, for all retail voided tickets:

a. The event wagering system reports which display voided ticket information shall be examined to verify that tickets were properly voided in the computer system;

b. The voided tickets shall be examined for a void designation; and

c. If the event wagering system prints void tickets, a void ticket shall be attached to the original ticket.

Daily, event wagering system exception reports shall be reviewed for propriety of transactions and unusual occurrences. All noted improper transactions or unusual occurrences noted during the review of exception reports shall be investigated with the results documented.

8. Monthly, foot the customer copy of paid retail tickets for a minimum of one cashier station and trace the totals to those produced by the event wagering system.

9. Quarterly, for each kiosk, foot the vouchers redeemed for a minimum of one day and trace the totals to the totals recorded in the event wagering system and the related accountability document. This procedure may be performed for different kiosks throughout the quarter as long as each kiosk's activity is examined once a quarter. Accounting/revenue audit shall document the test and the results of variance investigations, by kiosk.

10. Quarterly, for a minimum of one day, the event wagering system reports shall be reviewed for the proper calculation of the following:

a. Amounts held by the responsible party for player accounts (if applicable);

b. Amounts accepted by the responsible party as wagers on events whose outcomes have not been determined (futures); and

c. For retail, amounts owed but unpaid on winning event wagers through the period established for honoring winning wagers (unpaid winners and unredeemed vouchers).

11. Quarterly, for a minimum of one day:

a. If future wagers are accepted, review the event wagering system reports to ascertain that future wagers are properly included in write on the day of the event;

b. For retail, recalculate and verify the change in the unpaid winners and unredeemed vouchers balance to the total purged tickets and vouchers; and

c. For retail, select two winning tickets to verify that the wager was accepted, and payouts were made in accordance with the posted house rules.

12. Annually, foot the write on the event wagering system record of written tickets for a minimum of three cashiers for each wagering pool for one day and trace the total to the total produced by the event wagering system.

13. Annually, for a minimum of one day, foot the redeemed vouchers for one cashier station and trace the totals to those produced by the event wagering system.

14. Daily, reconcile all tournament entries and payouts to the dollar amounts recorded in the appropriate accountability document and/or event wagering system report.

15. When payment is made to the winners of a tournament, reconcile the tournament entry fees collected to the actual tournament payouts made.

Monthly, review all tournaments, promotions, and bonuses to determine proper accounting treatment and proper win/loss computation.

17. Monthly, perform procedures to ensure that promotions and bonuses are conducted in accordance with conditions provided to the patrons.

Documentation shall be maintained evidencing the performance of audit procedures, the exceptions noted, and follow-up of all audit exceptions.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021.

Ariz. Admin. Code § R19-4-140 Information Technology

A. Responsible parties shall maintain an information technology department that is responsible for the quality, reliability, and accuracy of all computer systems used in the operation.

B. Responsible parties shall ensure that duties in the information technology department are adequately segregated and monitored to detect procedural errors, unauthorized access to financial transactions and assets, and to prevent the concealment of fraud.

C. The information technology environment and infrastructure shall be maintained in a secured physical location that is restricted to authorized employees.

D. Responsible parties shall adopt procedures for responding to, monitoring, investigating, resolving, documenting, and reporting security incidents associated with information technology systems.

E. Information technology employees shall test the recovery procedures of the event wagering system on a sample basis at specified intervals at least annually. The results shall be documented and available to the Department upon request.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021.

Ariz. Admin. Code § R19-4-141 Internal Audit

A. Responsible parties shall maintain a separate audit department, independent of the event wagering operation, whether internal or through an ancillary supplier

B. The internal audit department shall be responsible for auditing the responsible party's compliance with the Act and this Article, the internal control system, and any other applicable rules and regulations.

C. An internal audit shall be performed at least annually with the results documented in a written report which shall be available to the Department.

D. Documentation shall be maintained to evidence all internal audit work performed as it relates to the requirements of this section, including all instances of noncompliance.

E. Follow-up observations and examinations shall be performed to verify that corrective action has been taken regarding all instances of noncompliance. The verification shall be performed within six months following the date of notification.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021.

Ariz. Admin. Code § R19-4-142 Security and Surveillance Plan

Each responsible party shall establish, maintain, and adhere to a written security and surveillance plan for the retail wagering areas, kiosks, and/or event wagering platforms. The plan shall provide for the following:

1. The physical safety of employees;

2. The physical safety of patrons in a retail wagering area and at kiosks;

3. The physical and logical security of a patron's information on an event wagering system;

4. The physical safeguarding of assets in a retail wagering area and/or kiosk;

5. The logical safeguarding of assets on an event wagering system;

6. The physical safeguarding of assets transported to and from a retail wagering area and/or kiosk; and

7. The protection of patron and responsible party property from illegal activity.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1167, effective 7/26/2021.

Ariz. Admin. Code § R19-4-143 Surveillance

A. Responsible parties shall have a surveillance system which monitors and records general activities in the retail wagering area.

B. Each cashier station or window shall be equipped with at least one dedicated camera covering all activity, with sufficient clarity to identify the employees performing the different functions.

C. Each kiosk shall be equipped with at least one dedicated camera covering all activities with sufficient clarity to identify the activity and the individuals performing it, including maintenance, drops or fills, and redemption of tickets.

D. The surveillance system shall monitor and record a general overview of all areas where cash or cash equivalents may be stored or counted.

E. The surveillance system shall monitor and record patrons placing wagers with sufficient clarity to allow for them to be identified and their activities to be monitored.

F. The surveillance system shall record an accurate date and time stamp on recorded events. The displayed date and time shall not significantly obstruct the recorded view.

G. Each camera shall be installed in a manner that prevents it from being readily obstructed, tampered with, or disabled.

H. A periodic inspection of the surveillance system shall be conducted by the responsible party. When a malfunction of the surveillance system is discovered, the malfunction and necessary repairs shall be documented, and repairs initiated within 72 hours.

I. All recordings required by this section shall be retained for a minimum of seven days.

J. Suspected crimes and/or suspicious wagering activity shall be copied, documented, and retained for at least one year unless otherwise authorized by the Department.

K. The Department shall have remote access to the surveillance system and its transmissions.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1168, effective 7/26/2021.

Ariz. Admin. Code § R19-4-144 Keys

A. Access to, and return of, keys or equivalents utilized in the operation of event wagering shall be documented with the date, time, and signature or other unique identifier of the agent accessing or returning the key or keys.

B. Documentation of all keys, including duplicates, shall be maintained, including:

Unique identifier for each individual key;

2. Key storage location;

3. Number of keys made, duplicated, and destroyed; and

4. Authorization and access.

C. The responsible party shall identify those keys (ex. kiosk, restricted computer storage media) which are considered sensitive and require additional access control.

D. The kiosk release and contents shall require a separate and unique key lock or alternative secure access method.

E. Annually, an inventory of all sensitive keys shall be performed by internal audit and reconciled to records of keys made, issued, and destroyed.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1168, effective 7/26/2021.

Ariz. Admin. Code § R19-4-145 Reporting Requirements

A. The responsible party shall report to the Department any violation or suspected violation of the Act or this Article, security breaches, breaches of confidentiality of a patron's personal information, and any other activity as required by the Department.

B. Responsible parties shall report the information listed above to the Department in writing within 72 hours of discovery.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1168, effective 7/26/2021.

Ariz. Admin. Code § R19-4-146 Remedies

The Department may place conditions on a license, fine, or otherwise sanction, licensees, for violations of this Statute, or the administrative rules of the Department. The Department's ability to impose fines and/or sanctions is subject to the following:

1. The Department shall notify the responsible party of the results of its investigation or investigations and any administrative proceedings. The results of any investigation shall not be disclosed if such disclosure will compromise ongoing law enforcement investigations or activities, or would violate applicable state and federal law.

2. All monetary fines collected by the Department, including any interest earned thereon, shall be deposited in the Event Wagering Fund established by A.R.S. § 5-1318(B).

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1168, effective 7/26/2021.

Ariz. Admin. Code § R19-4-147 Liability for Damage to Persons and Property

Responsible parties shall maintain a policy of commercial general liability insurance with a combined single limit for a security breach, personal injury, and/or property damage of not less than $5,000,000 per occurrence and in the aggregate. A copy of the policy, as well as any updates and/or renewals, shall be available to the Department.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1168, effective 7/26/2021.

Ariz. Admin. Code § R19-4-148 Patron Disputes

A. Whenever the responsible party refuses payment of alleged winnings to a patron or there is otherwise a dispute with a patron regarding their player account, wagers, wins, or losses from event wagering, and the responsible party and the patron are unable to resolve the dispute to the satisfaction of the patron, the responsible party shall notify the patron of their right to file a written complaint. The notice shall include the procedure for filing a written complaint and the responsible party's complaint resolution process.

B. Upon receipt of a complaint, the responsible party shall investigate and provide a written response to the patron within 10 days. The response shall include a statement that if the dispute is not resolved to the satisfaction of the patron, the patron may submit their complaint in writing to the Department.

1. If the Department receives a written complaint from a patron with regard to an unresolved patron dispute, the Department shall contact the responsible party and the responsible party shall provide to the Department a written response and any additional documentation relating to the patron's complaint.

2. The Department, in its sole discretion, may investigate the dispute and reach a final decision which may include a requirement for appropriate corrective action.

3. The Department shall provide a written response to the responsible party and the patron of the results of its investigation and the corrective action it directs, if any, within five days of the completion of its investigation.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1168, effective 7/26/2021.

Ariz. Admin. Code § R19-4-149 Barred Persons

The Department shall establish a list of persons barred from retail wagering areas, kiosks, and event wagering platforms because their conduct, criminal history, and association with career offenders or career offender organizations poses a threat to the integrity of event wagering or to the public health, safety, or welfare. The responsible party shall, upon having knowledge of a barred person's presence in a retail wagering area, prohibit that barred person from placing any wager, directly or indirectly, in a retail wagering area, on a kiosk, or on an event wagering platform. To the extent not previously provided, the Department shall send a copy of its list on a monthly basis to the responsible party, along with detailed information regarding why the person has been barred. Such persons shall be barred from all retail wagering areas, kiosks, and event wagering platforms within the State.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1168, effective 7/26/2021.

Ariz. Admin. Code § R19-4-150 Self-Exclusion and Responsible Gaming

A. As part of their procedures and programs to mitigate problem gaming and curtail compulsive gambling, responsible parties shall:

1. Post at all public entrances and exits of the retail wagering area signage in English and Spanish stating that help is available if a person has a problem with gambling, to include the statewide toll-free helpline telephone number, text message, website information established by the Department, and any other information as directed by the Department.

Display on each event wagering platform and/or kiosk, obvious and easily accessible messaging stating that help is available if a person has a problem with gambling, to include the statewide toll-free helpline telephone number, text message, website information established by the Department, and any other information as directed by the Department.

3. Include a responsible gaming message with the Department's statewide toll-free crisis helpline telephone number, or another toll-free crisis helpline telephone number as approved by the Department, on all advertisements for event wagering, including on television, radio, internet, printed advertisements, and billboards.

B. The self-exclusion list shall not be provided to any licensed supplier without the written approval of the Department. Approval shall only be granted by the Department when sharing of the list is deemed necessary to effectuate the terms of the Act and this Article.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1168, effective 7/26/2021.

Ariz. Admin. Code § R19-4-151 Debt Setoff

A. If a responsible party is required to file a form W2G or a substantially similar form, regardless of whether those winnings are claimed at a retail wagering area or on an event wagering platform, the responsible party shall check to determine if the player has a past due, setoff obligation.

B. The responsible party shall withhold past due, setoff obligations from those winnings which triggered the filing of a form W2G or a substantially similar form.

C. The Department shall supply the responsible party with the lists of outstanding obligations as provided by the Arizona Department of Economic Security, Child Support Enforcement, Supplemental Nutrition Assistance Program and Assistance Overpayment, the Arizona Supreme Court, the Arizona Health Care Cost Containment System, and the Arizona Department of Revenue (State tax debt) on a monthly basis.

D. The outstanding obligation lists shall not be provided to any licensed supplier without the written approval of the Department. Approval shall only be granted by the Department when sharing of the list is deemed necessary to effectuate the terms of the Act and this Article.

E. The responsible party shall provide a receipt to the patron for any funds withheld for outstanding obligations.

F. Any funds withheld by the responsible party shall be remitted to the Department within seven days in a format provided by the Department.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1168, effective 7/26/2021.

Ariz. Admin. Code § R19-4-152 Retention of Records

The responsible party shall require that all books, records, and data relating to the operation and management of event wagering in the State are maintained for at least five years from the date of creation. Upon written approval of the Department, books, records, and/or data may be destroyed prior to passage of the required five year retention period.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1168, effective 7/26/2021.

Ariz. Admin. Code § R19-4-153 Calculation of Time

In computing any period prescribed or allowed by the Act or this Article, the day of the act, event, or default from which the designated period begins to run shall not be included. The last day of the period so computed shall be included, unless it is a Saturday, a Sunday, or a legal holiday under state law or federal law. When the time prescribed or allowed is less than 11 days, intermediate Saturdays, Sundays and legal holidays under state law or federal law shall be excluded from the computation period.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1168, effective 7/26/2021.

Article 2 FANTASY SPORTS

Ariz. Admin. Code § R19-4-201 Definitions

A. The definitions in A.R.S. § 5-1201 apply to this Article.

B. Additionally, in this Article and in the Act, unless the context requires:

1. "Act" means Title 5, Arizona Revised Statutes, Chapter 10.

2. "Article" means Arizona Administrative Code, Title 19, Chapter 4, Article 2.

3. "Cash Equivalent" means, for the purposes of this Article 2 only, an electronic funds transfer, credit card, debit card, check, wire transfer, winnings, promotional or bonus credit, and any other form of payment as approved by the Department.

4. "Fantasy Sports Contest Entry" means the method to participate in a fantasy sports contest.

5. "Geofence Provider" means a person who creates a virtual perimeter for a real geographic location.

6. "Internal Control System" means the minimum level of operational controls developed by a responsible party to ensure the integrity of fantasy sports contests.

7. "Licensee" includes any person licensed by the Department under this Article.

8. "Responsible Party" means the fantasy sports contest operator or the management company who is responsible for the operation of fantasy sports contests.

9. "State" means the State of Arizona not to include the Indian lands within its exterior boundaries.

10. "Supplier" means persons who provide goods or services to a responsible party in connection with fantasy sports contests pursuant to the Act, to include:

a. Fantasy sports contest platform providers;

b. Identity verification service providers;

c. Payment processors;

d. Geofence providers; and

e. Any other person as determined by the Department.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1186, effective 7/26/2021.

Ariz. Admin. Code § R19-4-202 Fantasy Sports Contests Permitted

Fantasy sports contests in the State, except those which are permitted pursuant to Title 13, Chapter 33, shall only be conducted by licensed responsible parties who operate in compliance with, and meet the terms of, the Act and this Article

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1186, effective 7/26/2021.

Ariz. Admin. Code § R19-4-203 Power and Authority

A. The Department reserves all powers, duties, and authority granted to it by the Act and in this Article.

B. As a condition of holding a license, all licensees agree to be subject to State jurisdiction for purposes of compliance with, and enforcement of, the Act and this Article.

C. The Department shall monitor licensees, audit compliance with this Act and Article, and investigate suspected violations of any provision in the Act or this Article and may, at any time:

1. Access and inspect all, or any part of, any fantasy sports contest platform;

2. Access and inspect any fantasy sports contest server; and

3. Access, review, and/or copy all books, records, and/or data maintained by a licensee related to fantasy sports contests in the State.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1186, effective 7/26/2021.

Ariz. Admin. Code § R19-4-204 License Categories

A. Fantasy sports contest operators are subject to the licensing requirements of the Act and this Article. Fantasy sports contest operators shall have obtained from the Department a renewal of the license every two years thereafter before continuing to operate fantasy sports contests.

B. Management companies are subject to the licensing requirements of the Act and this Article. Management companies shall have obtained from the Department a renewal of the license every two years thereafter before continuing to offer management services.

C. A fantasy contest operator and/or management company shall identify any holding company which holds an ownership interest or voting rights of 10% or more of their operation. The Department, in its sole discretion, may require a holding company to obtain licensure in order to preserve the integrity of fantasy sports contests.

D. Suppliers shall have obtained a license from the Department prior to providing goods and/or services. The supplier license shall be in effect for two years and the supplier shall have obtained a renewal from the Department thereafter before continuing to provide goods and/or services.

E. On a quarterly basis, responsible parties shall provide to the Department a list of the names and addresses of their suppliers for fantasy sports contests in the State.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1186, effective 7/26/2021.

Ariz. Admin. Code § R19-4-205 Procedures for Licensing

A. Every applicant for a license shall submit a complete application in the form prescribed by the Department, which shall include all information and documentation required by the Department, along with the non-refundable initial license fee.

B. The fees for licensure shall be the following:

| 1. | Fantasy Contest Operator | | | --- | --- | --- | | a. Initial License Fee | $ 2,000 | | | b. Renewal | $ 1,000 | | | 2. | Management Company a. Initial License Fee | $ 2,000 | | b. Renewal | $ 1,000 | | | 3. | Holding Company a. Initial License Fee | $ 500 | | b. Renewal | $ 250 | | | 4. | Suppliers a. Initial License Fee | $ 250 | | b. Renewal | $ 125 | |

C. Within five days following its receipt of a complete application for licensure of a supplier, the Department shall issue a temporary license to the applicant unless the Department does not believe that the applicant will qualify for licensure. If the supplier does not receive a response from the Department regarding the approval or denial of the applicant's temporary license by the close of the fifth day following the receipt of a complete application for licensure then the applicant's temporary license shall be deemed approved by the Department. The results of a Department background investigation shall not be required prior to the issuance of a temporary license. The temporary license shall become void and be of no effect upon either the issuance of licensure or upon the issuance of notice of denial.

D. If fantasy sports contest operators, management companies, holding companies, or suppliers are applying for license renewal, fantasy sports contest operators, management companies, holding companies, and suppliers shall submit their completed renewal application along with the license renewal fee to the Department at least 30 days prior to the expiration date of their license. An applicant for renewal may continue to be engaged under their expired license until action is taken on the renewal application by the Department.

E. If a fantasy sports contest operator changes key employees, each new key employee shall file a complete disclosure application within 15 days after the change.

F. If a fantasy sports contest operator, management company, and/or holding company has a change of principals, directors, officers, and/or individual owners of 10% or more, each individual shall file a complete disclosure application within 30 days after the change, appointment, or election.

G. Applicants and licensees may appeal a summary suspension or a determination by the Department of a revocation, suspension, or denial of licensure.

H. An applicant for licensure, or renewal that wishes to withdraw an application shall submit a request to the Department in writing. The application shall not be considered withdrawn without the written permission of the Department.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1186, effective 7/26/2021.

Ariz. Admin. Code § R19-4-206 Responsible Advertising

A. Advertising, marketing, and promoting of fantasy sports contests shall not target, or otherwise be of a kind that specifically appeals to, persons under 21 years of age.

B. Advertising, marketing, and promoting of fantasy sports contests shall not be misleading or contain false information.

C. Advertising, marketing, and promotion of fantasy sports contests shall not promote irresponsible or excessive participation in fantasy sports contests, or suggest that social, financial, or personal success is guaranteed by engaging in fantasy sports contests.

D. Advertising, marketing, and promoting of fantasy sports contests shall not occur at event venues where most of the audience at many of the events at the venue is reasonably expected to be under 21 years of age.

E. Fantasy sports contest messages, including logos, trademarks, or brands, shall not be used, or licensed for use, on clothing, toys, games, or game equipment intended primarily for persons under 21 years of age.

F. Fantasy sports contests shall not be promoted or advertised in college or university-owned news assets, including digital news assets.

G. Fantasy sports contests shall not be promoted or advertised on college or university campuses, except for generally available advertising, including television, radio, and digital advertising.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1186, effective 7/26/2021. Amended by final exempt rulemaking at 28 A.A.R. 925, effective 4/15/2022.

Ariz. Admin. Code § R19-4-207 Internal Control System

A. Responsible parties shall operate fantasy sports contests pursuant to a written internal control system approved by the Department. The internal control system shall be designed to reasonably assure that for the purposes of fantasy sports contests offered in the State:

1. Assets are safeguarded and accountability over assets is maintained;

2. Liabilities are properly recorded and contingent liabilities are properly disclosed;

3. Financial records including records relating to revenues, expenses, assets, liabilities, and equity/fund balances are accurate and reliable;

Transactions are performed in accordance with the responsible party's general or specific authorization;

Access to assets is permitted only in accordance with the responsible party's specific authorization;

6. Recorded accountability for assets is compared with actual assets at frequent intervals and appropriate action is taken with respect to any discrepancies; and

7. Functions, duties and responsibilities are appropriately segregated and performed in accordance with sound practices by qualified personnel.

B. The internal control system shall include:

1. A description of, and the inter-relationships and dependencies of, the fantasy sports contest platform, hardware, software, and all integrated supplier platforms;

2. Procedures for verifying geolocation services and establishing a fantasy sports contest player's geographic location;

3. Procedures for monitoring, investigating, resolving, documenting, and reporting security incidents associated with information technology systems;

4. Procedures for the access to, and use of scripts;

5. Procedures for the mitigation of risk of fraud, cheating, and/or money laundering;

6. Procedures for the identification of highly experienced fantasy sports contest players;

7. Procedures to mitigate problem gambling and curtail compulsive gambling;

A responsible gaming training and education program;

9. Procedures for the identification, notice, and removal of self-excluded or barred persons from fantasy sports contest platforms;

10. Procedures for accepting entry fees, canceling fantasy sports contest entries, paying out prizes or awards, and issuing tax or other required forms;

11. Procedures for the recording and reconciliation of all fantasy sports contest transactions to fantasy sports contest platform reports;

Procedures for the reconciliation of assets contained in player accounts;

13. Procedures for the verification of player identification;

14. Procedures for the issuance and acceptance of promotional and/or bonus credit for fantasy sports contests;

15. Procedures for handling fantasy sports contest player disputes;

16. Procedures for creating, updating, adjusting, and closing player accounts;

17. Procedures for the retention of fantasy sports contest records; and

Procedures for the identification and prohibition of prohibited participants from participation in fantasy sports contests.

C. Responsible parties shall have obtained written approval of the internal control system, or any changes deemed material by the responsible party, from the Department prior to implementation. The Department shall review the system, or any material changes, and issue a written approval or disapproval of the system.

1. Prior to the commencement of operations in the State, the responsible party shall have obtained written approval from the Department for the internal control system.

2. After the commencement of operations in the State, the responsible party shall submit any material changes to the internal control system to the Department for review and approval. If, after five days, the responsible party has not received a response from the Department regarding the material changes to the internal control system, then the material changes shall be deemed approved by the Department.

D. For fantasy sports contests under the Act, responsible parties shall maintain:

1. Accurate, complete, legible and permanent records of all transactions in a manner suitable for audit under the standards of the American Institute of Certified Public Accountants;

2. General accounting records using a double entry system of accounting with transactions recorded on a basis consistent with generally accepted accounting principles;

3. Detailed supporting and subsidiary records;

4. Detailed records identifying revenues, expenses, assets, liabilities and fund balances or equity;

5. All records required by the internal control system including, but not limited to, those relating to any fantasy sports contest activity authorized by the Act;

6. Journal entries;

7. Detailed records sufficient to accurately reflect gross income and expenses relating to its operations; and

8. Records of any proposed or adjusting entries made by an independent certified public accountant.

E. The responsible party shall maintain bank account or accounts that are separate and distinct from all other corporate accounts, unless otherwise agreed to by the Department. The account or accounts shall be used for all player deposits, receipts, and disbursements relating to its operation of fantasy sports contests under the Act. The responsible party shall utilize a software accounting system that separates and distinguishes all receipts and disbursements regarding or in any way relating to fantasy sports contest activity under the Act.

F. Responsible parties shall notify the Department in writing of their fiscal year end and any changes to the fiscal year end within 10 days after deciding on a fiscal year end or a change to that year end.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1186, effective 7/26/2021.

Ariz. Admin. Code § R19-4-208 Privilege Fee

A. As per A.R.S. § 5-1211(A), the established fee for the privilege of operating fantasy sports contests shall be 5% of fantasy sports contest adjusted revenues.

B. The responsible party has the option to choose either the cash accrual or modified accrual basis method of accounting for purposes of calculating the amount of the privilege fee.

C. The calculation of fantasy sports contest adjusted revenues shall be reported in a format required by the Department. The responsible party shall submit all necessary supporting documentation as directed by the Department to confirm the calculation of fantasy sports contest adjusted revenues. The report and supporting documentation shall be submitted to the Department no later than the 25th day of each month for the preceding month.

1. Fees paid pursuant to the Act and this Article shall be paid to the Department in the manner prescribed by the Department.

2. Following the Department's receipt of the annual audit pursuant to A.R.S. § 5-1204, any overpayment of fees by the responsible party shall be credited to the responsible party's next monthly fee payment. Any underpayment of fees shall be paid by the responsible party within 30 days of the Department's receipt of the annual audit.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1186, effective 7/26/2021. Amended by final exempt rulemaking at 28 A.A.R. 925, effective 4/15/2022.

Ariz. Admin. Code § R19-4-209 Servers and Cloud Storage

A. Responsible parties shall provide the Department with the physical location of each server that accepts fantasy sports contest entries. The server or servers shall have physical and logical security.

B. The responsible party may utilize cloud storage upon written approval by the Department.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1186, effective 7/26/2021.

Ariz. Admin. Code § R19-4-210 Geofencing

A. The responsible party shall utilize a geofence system to dynamically monitor the physical location of a player attempting to pay an entry fee on a fantasy sports contest platform.

B. The geofence system shall perform a geolocation check prior to each payment of an entry fee in an authorized session.

C. If a geolocation check determines that a player is not located in the State or another jurisdiction where fantasy sports contests are legal and the activity is permitted, the player shall be blocked from paying an entry fee on the fantasy sports contest platform.

D. The responsible party or the geofence provider shall implement a means to notify a player of a geolocation failure.

E. Attempts to pay an entry fee from unauthorized locations within the State shall be entered into a log by the geofence provider and/or the responsible party. The log shall be available to the Department upon request.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1186, effective 7/26/2021.

Ariz. Admin. Code § R19-4-211 Fantasy Sports Contest Platform

A. The fantasy sports contest platform shall be designed to ensure the integrity and confidentiality of all player communications, security and confidentiality of player data including personal and financial information, and the proper identification of the sender and receiver of all communications.

B. The responsible party shall notify the Department in writing prior to the installation of a fantasy sports contest platform that the platform meets the design requirements of R19-4-211(A) and the geofence requirements of R19-4-210(A) - (D).

C. The responsible party shall notify the Department in writing prior to the installation of a fantasy sports contest platform, and annually thereafter, that the platform properly calculates entry fees and payouts.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1186, effective 7/26/2021.

Ariz. Admin. Code § R19-4-212 Fantasy Sports Contest Platform Communication

If the fantasy sports contest platform is unable to accept a fantasy sports contest entry or validate a winning entry for more than two hours, the responsible party shall notify the Department as soon as practically possible.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1186, effective 7/26/2021.

Ariz. Admin. Code § R19-4-213 Fees and Entry Rules

A. Entry fees shall be paid from funds in a player account deposited by cash or cash equivalent.

B. All entry fees shall be transacted through the fantasy sports contest platform.

C. Upon acceptance of an entry fee, an electronic fantasy sports contest entry shall be immediately issued.

D. Upon verification, winnings from fantasy sports contest entries shall be immediately deposited into the player account.

E. A fantasy sports contest entry shall only be purchased from a verified player account.

F. A fantasy sports contest entry shall not be accepted upon an event whose outcome has already been determined.

G. If a player cancels a fantasy sports contest entry prior to the start of the fantasy sports contest, and the cancel request is approved by the responsible party, the fantasy sports contest entry fee shall be refunded to the player account after verification by the fantasy sports contest platform.

H. An entry fee shall not be accepted from a person who is purchasing the fantasy sports contest entry for the benefit of another for compensation or is purchasing the fantasy sports contest entry in violation of tribal, state, or federal law.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1186, effective 7/26/2021.

Ariz. Admin. Code § R19-4-214 Events and Fantasy Sports Contests

A. The responsible party shall submit a catalogue of the events and fantasy sports contests it intends to offer. The catalogue and any changes shall be submitted to the Department prior to implementation.

B. The Department shall publish a list of authorized events and fantasy sports contests on its website.

C. The Department may prohibit a particular event or fantasy sports contest if it does not comply with A.R.S. § 5-1201(6).

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1186, effective 7/26/2021.

Ariz. Admin. Code § R19-4-215 House Rules

A. The house rules shall be conspicuously displayed on the fantasy sports contest platform. House rules shall address:

1. Types of entry fees accepted;

2. Minimum and maximum fantasy sports contest entry amounts accepted;

3. The maximum number of entries a player may have in a fantasy sports contest;

4. Method for calculation and payment of winnings;

5. Effect of scheduling changes and/or cancelled events;

Process for handing incorrectly posted results;

7. Methods of funding an account;

8. Methods for redeeming winnings;

9. Policy and process for canceling fantasy sports contest entries;

10. Process for fantasy sports contest players to submit questions and/or complaints;

11. Notification of the fantasy sports contest player dispute process; and

12. Notification of the self-exclusion process.

B. Responsible parties shall submit the house rules to the Department prior to implementation. The Department shall review the house rules and issue a written approval or disapproval of them. Any proposed changes to the house rules shall be approved by the Department prior to implementation. If, after five days, the responsible party has not received a response from the Department regarding the house rules, or any changes to them, then the house rules shall be deemed approved by the Department.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1186, effective 7/26/2021.

Ariz. Admin. Code § R19-4-216 Player Account Creation

A. Responsible parties shall verify a fantasy sports contest player's age and identity before allowing that player to utilize a player account to purchase fantasy sports contest entries.

B. Responsible parties may utilize an identity verification service provider to confirm a fantasy sports contest player's age and identity.

C. Responsible parties shall prohibit a fantasy sports contest player from having more than one player account and username for each fantasy sports contest platform.

D. Responsible parties shall establish and maintain each player account file with the following:

1. Player's legal or full name;

2. Player's date of birth;

3. Player's account number or username;

4. Player's residential address;

5. Player's e-mail address;

6. The method used to verify the player's identity;

The date of verification; and

Acknowledgement of fantasy sports contest terms and conditions, including any subsequent updates.

E. Responsible parties shall notify players of the establishment of a player account and the associated terms and conditions.

F. Responsible parties shall re-verify a player's identification upon reasonable suspicion that the player's identification has been compromised or the player account has been misused, or upon any suspicious activity involving the player or player account.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1186, effective 7/26/2021.

Ariz. Admin. Code § R19-4-217 Player Account Terms and Conditions

Player account terms and conditions shall include the following:

1. Name of the responsible party with whom the player is entering into a contractual relationship;

2. Player's consent to have the responsible party confirm the player's age and identity;

3. Rules and obligations applicable to the player with regard to allowing any other person to access or use his or her player account;

4. Player's consent to the monitoring and recording by the responsible party of any fantasy sports contest entry communication and geographic location information;

5. Privacy policy;

6. Legal age policy;

7. Rules for player account suspension;

8. Rules for dormant player accounts;

9. Rules for closing player accounts; and

Availability of player account statements.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1186, effective 7/26/2021.

Ariz. Admin. Code § R19-4-218 Player Account Maintenance

A. All adjustments to a player account shall be authorized by the responsible party and periodically reviewed by an employee independent of the adjustment.

B. A player shall be allowed to withdraw the funds maintained in his or her player account.

1. Upon verification by the responsible party, the player's requests to withdraw funds shall be honored within seven days of the request.

2. The responsible party may decline to honor a player request to withdraw funds if the responsible party believes that the player engaged in either fraudulent conduct or other conduct that would put the responsible party in violation of the law or this Article. In such cases, the responsible party shall:

a. Provide notice to the player of the delay in honoring the request to withdraw funds from the player account;

b. Investigate in an expedient fashion; and

c. Notify the player and the Department of the results of the investigation within two days of the completion of the investigation.

C. The responsible party shall consider a player account to be dormant if the player has not logged into the player account for at least three years. A dormant account shall be closed by the responsible party. Upon closure of a dormant account, the responsible party shall make reasonable efforts to contact the account holder to return any unclaimed funds as required by A.R.S. § 44-307(E).

D. After one hundred and 120 days of attempting to contact the account holder, the unclaimed funds in a dormant account shall be presumed abandoned. Responsible parties shall remit all abandoned funds to the Arizona Department of Revenue as required by A.R.S. § 44-307.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1186, effective 7/26/2021.

Ariz. Admin. Code § R19-4-219 Promotions and Bonuses

A. Responsible parties may offer promotions and/or bonuses.

B. Responsible parties shall make promotion and/or bonus rules and advertisements available to the Department upon request.

C. The promotion and/or bonus rules shall be clear and unambiguous, and include:

1. Date and time the promotion or bonus is active and expires;

2. Rules of play;

3. Nature and value of prizes or awards;

4. Eligibility restrictions or limitations;

Participation requirements and limitations;

6. Eligible fantasy sports contests;

7. Cancellation requirements; and

8. Terms and conditions that are full, accurate, concise, transparent, and do not contain misleading information.

D. Promotions and/or bonuses described as free shall clearly disclose material facts, terms, and conditions.

E. Promotions and/or bonuses shall not restrict the player from withdrawing their own funds, or withdrawing winnings from fantasy sports contest entries purchased with their own funds.

F. Responsible parties shall make the promotion or bonus rules available to eligible players.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1186, effective 7/26/2021.

Ariz. Admin. Code § R19-4-220 Information Technology

A. Responsible parties shall ensure the quality, reliability, and accuracy of all computer systems used in the operation.

B. Responsible parties shall ensure that information technology duties are adequately segregated and monitored to detect procedural errors, unauthorized access to financial transactions and assets, and to prevent the concealment of fraud.

C. The information technology environment and infrastructure shall be maintained in a secured physical location that is restricted to authorized employees.

D. Responsible parties shall test the recovery procedures of the fantasy sports contest platform on a sample basis at specified intervals at least annually. The results shall be documented and available to the Department upon request.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1186, effective 7/26/2021.

Ariz. Admin. Code § R19-4-221 Annual Audit

The responsible party shall be audited not less than annually, at its own expense, on its financial condition and compliance standing.

1. Financial statements, or a specific element financial statement related to fantasy sports contests in the State, shall be audited at the responsible party's fiscal year end by an independent certified public accountant. The audit shall include or be supplemented with an attestation from the independent certified public accountant that fantasy sports contest adjusted revenues are accurately reported. The Department shall be authorized to confer with the independent certified public accountant at the conclusion of the audit process and to review all the work papers and documentation relating to the responsible party.

2. The responsible party shall submit an annual compliance audit, prepared by an independent test laboratory, or another professional service provider as approved by the Department, to verify compliance with the operational aspects of the Act and this Article. The compliance audit shall include testing of the internal control system, verification of the integrity of the fantasy sports contest platform, and the geofence system.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1186, effective 7/26/2021.

Ariz. Admin. Code § R19-4-222 Reporting Requirements

A. The responsible party shall report to the Department any violation or suspected violation of the Act or this Article, security breaches, breaches of confidentiality of a player's personal information, suspicious activity, and any other activity as required by the Department.

B. Responsible parties shall report the information listed above to the Department in writing within 72 hours of discovery.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1186, effective 7/26/2021.

Ariz. Admin. Code § R19-4-223 Remedies

The Department may place conditions on a license, fine, or otherwise sanction, licensees, for violations of this Statute, or the administrative rules of the Department. The Department's ability to impose sanctions is subject to the following:

1. The Department shall notify the responsible party of the results of its investigation or investigations and any administrative proceedings. The results of any investigation shall not be disclosed if such disclosure will compromise ongoing law enforcement investigations or activities, or would violate applicable state and federal law.

2. All monetary fines collected by the Department, including any interest earned thereon, shall be deposited in the fantasy sports contest fund established by A.R.S. § 5-1212(A).

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1186, effective 7/26/2021.

Ariz. Admin. Code § R19-4-224 Player Disputes

A. Whenever the responsible party refuses payment of alleged winnings to a player or there is otherwise a dispute with a player regarding their player account, entries, wins, or losses from fantasy sports contests, and the responsible party and the player are unable to resolve the dispute to the satisfaction of the player, the responsible party shall notify the player of their right to file a written complaint. The notice shall include the procedure for filing a written complaint and the complaint resolution process.

B. Upon receipt of a complaint, the responsible party shall investigate and provide a written response to the player within 10 days. The response shall include a statement that if the dispute is not resolved to the satisfaction of the player, the player may submit their complaint in writing to the Department.

1. If the Department receives a written complaint from a player with regard to an unresolved dispute, the responsible party shall provide to the Department a written response to the player's complaint.

2. The Department, in its sole discretion, may investigate the dispute and reach a final decision which may include a requirement for appropriate corrective action.

3. The Department shall provide a written response to the responsible party and the player of the results of its investigation and the corrective action it directs, if any, within five days of the completion of its investigation.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1186, effective 7/26/2021.

Ariz. Admin. Code § R19-4-225 Barred Persons

The Department shall establish a list of persons barred from fantasy sports contests because their conduct, criminal history, and association with career offenders or career offender organizations poses a threat to the integrity of fantasy sports contests or to the public health, safety, or welfare. The responsible party shall prohibit barred persons from participating in fantasy sports contests. To the extent not previously provided, the Department shall send a copy of its list on a monthly basis to the responsible party, along with detailed information regarding why the person has been barred. Such persons shall be barred from all fantasy sports contests within the State.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1186, effective 7/26/2021.

Ariz. Admin. Code § R19-4-226 Self-Exclusion and Responsible Gaming

A. As part of their procedures and programs to mitigate problem gambling and curtail compulsive gambling, responsible parties shall:

1. Display on the fantasy sports contest platform, obvious and easily accessible messaging stating that help is available if a person has a problem with gambling, to include the statewide toll-free helpline telephone number, text message, website information established by the Department, and any other information as directed by the Department.

Include a responsible gaming message with the Department's statewide toll-free crisis helpline telephone number, or another toll-free crisis helpline telephone number as approved by the Department, on all advertisements for fantasy sports contests, including on television, radio, internet, printed advertisements, and billboards.

B. The self-exclusion list shall not be provided to any licensed supplier without the written approval of the Department. Approval shall only be granted by the Department when sharing of the list is deemed necessary to effectuate the terms of the Act and this Article.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1186, effective 7/26/2021.

Ariz. Admin. Code § R19-4-227 Debt Setoff

A. If a responsible party is required to file a form 1099-MISC or other substantially similar form, the responsible party shall check to determine if the player has a past due, setoff obligation

B. The responsible party shall withhold past due, setoff obligations from funds held in a player account at the time the form 1099-MISC or other substantially similar form is issued.

C. The Department shall supply the responsible party with the lists of outstanding obligations as provided by the Arizona Department of Economic Security, Child Support Enforcement, Supplemental Nutrition Assistance Program and Assistance Overpayment, the Arizona Supreme Court, and the Arizona Health Care Cost Containment System on an annual basis.

D. The outstanding obligation lists shall not be provided to any licensed supplier without the written approval of the Department. Approval shall only be granted by the Department when sharing of the list is deemed necessary to effectuate the terms of the Act and this Article.

E. The responsible party shall provide a receipt to the player for any funds withheld for outstanding obligations.

F. Any funds withheld by the responsible party shall be remitted to the Department within seven days in a format provided by the Department.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1186, effective 7/26/2021.

Ariz. Admin. Code § R19-4-228 Retention of Records

The responsible party shall require that all books, records, and data relating to the operation and management of fantasy sports contests are maintained for at least three years from the date of creation. Upon written approval of the Department, books, records, and/or data may be destroyed prior to passage of the required three-year retention period.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1186, effective 7/26/2021.

Ariz. Admin. Code § R19-4-229 Calculation of Time

In computing any period prescribed or allowed by the Act or this Article, the day of the act, event, or default from which the designated period begins to run shall not be included. The last day of the period so computed shall be included, unless it is a Saturday, a Sunday, or a legal holiday under state law or federal law. When the time prescribed or allowed is less than 11 days, intermediate Saturdays, Sundays and legal holidays under state law or federal law shall be excluded from the computation period.

History

• Adopted by final exempt rulemaking at 27 A.A.R. 1186, effective 7/26/2021.