Arizona Revised Statutes

TITLE 5, CHAPTER 4, GAMES OF BINGO

Article 1. General Provisions page 4

Arizona Administrative Code - Rules

TITLE 15, CHAPTER 7, DEPARTMENT OF REVENUE - BINGO SECTION

Article 1. Repealed page 11

Article 2. General Provisions 12

Article 3. Licensing Provisions 16

Article 4. Tax Provisions 17

Article 5. Suspension; Revocation; Appeals 18

Article 6. Hearing and Appeal Procedures 18

TITLE 5. AMUSEMENTS AND SPORTS

CHAPTER 4. GAMES OF BINGO

ARTICLE 1. GENERAL PROVISIONS

Section

§ 5-401. Definitions

§ 5-402. Licensing authority; powers; duties

§ 5-403. Qualification for license; renewal; transfer

§ 5-403.01 License location transfers

§ 5-404. Application for license

§ 5-405. Form of license; display

§ 5-406. Persons permitted to conduct games; premises; equipment; expenses; compensation

§ 5-407. Statement of receipts; expenses; penalty

§ 5-408. Examination of books and records

§ 5-409. Forfeiture of license; ineligibility to apply for license; classification

§ 5-410. Violation; classification

§ 5-411. Credentials and authority of employees of the licensing authority

§ 5-412. Preemption by state of bingo taxation

§ 5-413. License classification; requirements

§ 5-414. Fees; tax

§ 5-415. Excessive gross receipts; change of license class

ARTICLE 1. GENERAL PROVISIONS

§ 5-401. Definitions

In this chapter, unless the context otherwise requires:

1. "Adjusted gross receipts" means the receipts remaining after deducting the monies paid for prizes from gross receipts.

2. "Applicant" means a person, a group of persons or an organization that submits an application to the licensing authority for a license required under this chapter.

3. "Assistant" means a person who is not a manager, supervisor or proceeds coordinator, who assists in conducting bingo games and who is designated as an assistant in the application for a license.

4. "Auxiliary" means a formally organized body formed for the purpose of assisting a qualified organization in accomplishing its primary purposes and recognized by a licensee in writing to the licensing authority as the licensee for the purposes of this chapter.

5. "Charitable organization" means any organization including not more than one auxiliary of the organization, not for pecuniary profit, which is operated for charitable purposes within this state and which has been so engaged for two years prior to making application for a license under this article.

6. "Chartered branch or lodge or chapter of a national or state organization" means any branch or lodge or chapter of a national or state qualified organization.

7. "Equipment" means the receptacle and numbered objects drawn from it, the master board upon which such objects are placed as drawn, the cards or sheets bearing numbers or other designations to be covered and the objects used to cover them, the board or signs, however operated, used to announce or display the numbers or designations as they are drawn, the public address system, and all other articles essential to the operation, conduct and playing of bingo.

8. "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.

9. "Gross receipts" means the total of the following:

(a) The receipts from the sale of shares, tickets or rights in any manner connected with participation in a game of bingo or the right to participate therein, including any admission fee, charge for cards, daubers or other devices, the sale of equipment or supplies and all other miscellaneous receipts, excluding sales of food or beverages or other products which are not required to play bingo games.

(b) Interest collected on the special account or interest bearing accounts established pursuant to section 5-407.

10. "Homeowners association" means a nonprofit corporation or association that is established to own, lease or manage common, limited access lots, parcels, areas, grounds or streets of a real estate development and that has continuously engaged in those activities in this state for at least two years immediately before applying for a license.

11. "Lawful purposes" means the expenditure of net proceeds of a game of bingo exclusively by a licensee for the purposes of carrying out its mission and its aims or for the purpose of charity.

12. "Lawful use" means the devotion of the entire net proceeds of a game of bingo exclusively to a lawful purpose or to lawful purposes.

13. "License" means a license issued by the licensing authority pursuant to this article.

14. "Licensee" means any person or qualified organization to which a license has been issued by the licensing authority.

15. "Licensing authority" means the department of revenue.

16. "Local governing body" means the governing body of a city or town or the board of supervisors of the county for locations outside a city or town.

17. "Manager" means a person who has overall responsibility for conducting bingo games by a licensee and is designated as a manager in the application for a license.

18. "Member" means an individual who has qualified for membership in a qualified organization or its auxiliary pursuant to its bylaws, articles of incorporation, charter, rules or similar written instrument and who has been a member in good standing for at least two years.

19. "Net proceeds" means the receipts less such expenses, charges, fees and deductions as are specifically authorized under this article.

20. "New member" means an individual who has qualified and been approved by the appropriate parent organization or state or national organization for membership in a qualified organization including auxiliaries pursuant to its bylaws, articles of incorporation, charter, rules or similar written instrument and who has been a member in good standing for at least thirty days but less than two years.

21. "Occasion" means a gathering at which bingo games are played.

22. "Person" means a natural person, firm, association, corporation or other legal entity.

23. "Premises" means any room, hall, building, enclosure or outdoor area used for the purpose of playing a game of bingo. Premises shall not be subdivided to provide multiple premises.

24. "Proceeds coordinator" means a person who has primary responsibility for the use of bingo game proceeds in accordance with law and for all checks issued from bingo game proceeds and is designated as the proceeds coordinator in the application for a license.

25. "Qualified organization" means a homeowners association or any bona fide charitable, fraternal, religious, social, as described in section 43-1201, paragraph 7, veterans' or volunteer fire fighters organization, or nonprofit ambulance service as defined in section 41-1831 or any chartered branch or lodge or chapter of such national or state organization which operates without profit to its members and which has been in existence continuously for a period of two years in Arizona immediately before applying for a license under this article, and may include not more than one identified auxiliary of any such organization.

26. "Religious organization" means any organization, church, body of communicants or group, not for pecuniary profit, gathered in common membership for regular worship and religious observances and which organization has been so gathered or united for two years prior to making application for a license under this article. Religious organization shall also include not more than one auxiliary of the organization.

27. "Reporting period" means the applicable reporting period prescribed in section 5-413.

28. "Revocation" means the disciplinary termination of bingo license activity.

29. "Supervisor" means a person who is primarily responsible for the conduct of bingo games on each occasion including the supervision of all activities and the making of any report required by the licensing authority for the occasion.

30. "Suspension" means the disciplinary termination of bingo license activity for a period of less than five years.

31. "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.

32. "Voluntary fire fighters organization" means any organization within this state, not for pecuniary profit, established pursuant to title 48, chapter 5 which has been in existence continuously for two years immediately before applying for a license under this article.

§ 5-402. Licensing authority; powers; duties

The department of revenue is designated as the "licensing authority" of this article. The department of revenue shall be in charge of enforcement of the terms and provisions of this article and, as state licensing authority, it shall:

1. Grant or refuse licenses under this article. In addition, the licensing authority shall have the power on its own motion based on reasonable grounds or on a complaint made and after an investigation and public hearing, at which the licensee shall be afforded an opportunity to be heard, to suspend or revoke any license issued by the licensing authority for any violation by the licensee or any officer, director, agent, member or employee of such licensee of the provisions of this article or any rule authorized under this article. Notice of suspension or revocation, as well as notice of such hearing, shall be given by certified mail to the licensee at the address contained in such license. The licensing authority may suspend the operation of a game pending a hearing, in which case, the hearing shall be held within ten days after such notice. Proceedings to suspend or revoke a license shall be held pursuant to title 41, chapter 6, article 10.

2. Supervise the administration of this article and adopt, amend and repeal rules governing the holding, operating and conducting of games of bingo, the rental or purchase of premises and the purchase of equipment and providing that games of bingo shall be held, operated and conducted only by licensees for the purposes and in conformity with the provisions of this article.

3. Keep records of all actions and transactions of the licensing authority.

4. Report on request to the governor or the legislature respecting the administration of this article and make such recommendations in regard to legislation as the licensing authority shall deem necessary and proper.

§ 5-403. Qualification for license; renewal; transfer

A. A person shall not conduct or assist in conducting activity for which a license is required under this article unless the person conducting the activity first obtains the specific class of license for the activity.

B. A license prescribed by this article shall not be issued to an applicant qualified under this article until the licensing authority receives an original or certified copy of the application from the local governing body and the nonrefundable license fee prescribed in section 5-414 is paid to the licensing authority. The license expires one year from the date it is issued and may be renewed upon the filing with the licensing authority of an application for renewal of the license provided by the licensing authority and the payment of the license fee prescribed in section 5-414. A thirty day grace period shall be allowed during which the license may be renewed if a late filing penalty equal to the license fee is submitted with the regular license fee. A licensee filing late shall not conduct occasions of bingo until the licensing authority has renewed the license for the next one year period. If the licensee fails to apply to the licensing authority within the thirty day grace period the licensee must reapply for a new license under section 5-404.

C. If a license is revoked the licensing authority shall not issue a new license to the licensee for a period of five years from the effective date of the revocation.

D. A license issued pursuant to this article is not transferable to another person.

E. The licensing authority shall not issue more than one license to an applicant or licensee.

§ 5-403.01. License location transfers

A licensee shall not transfer the location for which a license is issued unless the governing body of the city or town or the board of supervisors of the county to which the license is proposed to be transferred gives prior written approval after a public hearing. The licensee shall transmit the approval document from the local governing body and its existing license to the licensing authority, and, upon a determination that the transfer would not result in a violation of any provision of this article, the licensing authority shall issue a new license identifying the new location. The transfer is not effective until the new license is issued. Temporary transfers of location are prohibited.

§ 5-404. Application for license

A. Each applicant for an initial license to be issued pursuant to the provisions of this section shall submit to the local governing body the local governing body fee and the license fee prescribed in section 5-414 together with a written application in the form prescribed by the licensing authority, duly executed and verified, and in which shall be stated:

1. The name, telephone number and address of the applicant.

2. Sufficient facts to enable the licensing authority to determine whether or not the applicant is qualified for the specific class of license for which the applicant is applying.

3. If the applicant is a qualified organization the names and addresses of its officers.

4. The place where and day and time when such games of bingo are to be held, operated and conducted by the applicant, under the license applied for.

5. The items of expense intended to be incurred or paid in connection with the holding, operating and conducting of such games of bingo and the names and addresses of the persons to whom, and the purposes for which, they are to be paid.

6. The specific projected use of the net proceeds.

7. Such other information as shall be deemed advisable by the licensing authority.

B. The applicant shall designate in the application:

1. One or two persons who will serve as manager.

2. One person who will serve as proceeds coordinator.

3. At least one person who will serve as supervisor.

4. At least one person who will serve as assistant.

C. A person designated as a manager, proceeds coordinator or supervisor on a license shall not serve in any of these positions under any other license.

D. The applicant shall attach affidavits to the application which are executed by each manager and state that the manager:

1. Will conduct all bingo games in compliance with the license, this article and the rules of the licensing authority.

2. Is of good moral character.

3. Has never been convicted of a misdemeanor involving moral turpitude or a felony.

E. The applicant shall attach an affidavit to the application which is executed by the proceeds coordinator and states that the proceeds coordinator:

1. Will use the net proceeds in compliance with the terms of the license, this article and the rules of the licensing authority.

2. Is of good moral character.

3. Has never been convicted of a misdemeanor involving moral turpitude or a felony.

F. A person may serve as supervisor for more than one occasion for the same licensee. The supervisor shall be continuously present on the premises during the bingo games and until all associated activities have been completed. The applicant shall attach affidavits to the application which are executed by each supervisor and state that the supervisor:

1. Will comply with the terms of the license, this article and the rules of the licensing authority in supervising each occasion.

2. Is of good moral character.

3. Has never been convicted of a misdemeanor involving moral turpitude or a felony.

G. Except in an application for a class A license, the applicant shall attach affidavits to the application which are executed by each assistant and state that the assistant:

1. Will comply with the terms of the license, this article and the rules of the licensing authority in assisting in the conduct of all bingo games.

2. Is of good moral character.

3. Has never been convicted of a misdemeanor involving moral turpitude or a felony.

H. If any premises are to be leased or rented in connection with holding, operating or conducting any game of bingo pursuant to this article, an affidavit by the lessor shall accompany the application stating the lessor's name and address, the amount of rent, stated in a specific dollar amount and not relating to any percentage or portion of gross or net revenue, which will be paid for such premises and that the lessor is, or its officers and directors are, of good moral character and have not been convicted of any misdemeanor involving moral turpitude or a felony.

I. The local governing body shall upon receipt of the application immediately set a hearing on the application to be held within forty-five days.

J. Following the receipt of the application and the hearing the local governing body shall recommend approval or disapproval of the application and forward the original or a certified copy of the application endorsed with its approval or disapproval to the licensing authority. If the application is disapproved by the local governing body the endorsement shall contain the specific reasons for disapproval.

§ 5-405. Form of license; display

A. Each license shall contain a statement of the name and address of the licensee, the name of the manager and the place where bingo games are to be held.

B. Each license issued for the conduct of any game or games of bingo shall be conspicuously displayed at the place where any game is to be conducted at all times during any game.

§ 5-406. Persons permitted to conduct games; premises; equipment; expenses; compensation

A. A person shall not hold, operate or conduct any game of bingo under any license issued pursuant to this article unless the person has submitted affidavits as required in section 5-404 and has received prior written approval from the licensing authority. Persons seeking to replace a manager, proceeds coordinator, supervisor or assistant or to serve as an additional manager, supervisor or assistant shall submit the appropriate affidavit to the licensing authority as required in section 5-404.

B. Except as provided in section 5-413, only members and new members of a licensee or an applicant may participate or apply to participate in conducting any bingo game held by the licensee.

C. Except for a class A licensee, a person shall not hold, operate, conduct or assist in conducting any game or games of bingo under any license if the person or the person's spouse has a proprietary, equitable or credit interest, or is an officer, director, agent or employee of an individual or company that has a proprietary, equitable or credit interest, in the licensee.

D. Bookkeepers or accountants need not be members of the organization.

E. An item of expense shall not be incurred or paid in connection with holding, operating or conducting any game of bingo held, operated or conducted pursuant to any license issued under this article, except bona fide expenses in a reasonable amount for purposes described in section 5-407, subsection G. A game of bingo shall not be conducted with any equipment except equipment owned solely by the licensee, or jointly by not more than six licensees. No portion of the ownership of such equipment may be held by any person or organization not licensed pursuant to this chapter. A game of bingo shall not be conducted with rented equipment.

F. An applicant or a licensee shall not enter into any purchase agreement other than a bona fide purchase agreement. The seller may repurchase equipment only upon default of the buyer and then only at a price equal to or greater than ninety per cent of any money paid for equipment from buyer to seller. The seller may repurchase a building only upon default of the buyer at a fair market value per licensee.

G. A licensee shall not conduct or operate more than five occasions of bingo during any calendar week. No more than twelve hours of bingo shall be conducted in any building or on any premises during any calendar day.

H. The entire net proceeds of any game shall be devoted to a lawful use or uses. In addition to other unlawful uses, the following are not considered lawful uses under this subsection:

1. Compensation and expenses of directors, officers and management personnel.

2. Fees or commissions of consultants.

3. Compensation paid for legal services incurred by a licensee unsuccessfully defending against charges of violations of this article.

4. Donations to other than national, state or local nonprofit parent organizations in excess of five per cent of the net proceeds except with the permission of the licensing authority.

5. Donations or any payment from the lessor to the lessee.

I. The premises where any game of bingo is being held, operated or conducted, where it is intended that any game of bingo shall be held, operated or conducted or where it is intended that any equipment shall be used shall at all times be open to inspection by the licensing authority, its agents and employees and peace officers of any political subdivision of the state.

J. When any merchandise prize is awarded in a game of bingo, its value shall be its current retail price. A merchandise prize shall not be redeemable or convertible into cash directly or indirectly.

K. Equipment, prizes and supplies for games of bingo shall not be purchased or sold at prices in excess of one hundred fifteen per cent of the average price paid by other licensees as reported in the reports submitted to the licensing authority during the prior six month period by licensees having the same class of license. A licensee shall not enter into any contract or purchase agreement whereby it agrees to limit its source of supplies.

L. An alcoholic beverage shall not be offered or given as a prize in any such game.

M. The net profits derived from the holding of games of bingo must be devoted within one year from the date such profits were earned to the lawful purposes of the organization permitted to conduct such games. Any organization desiring to hold the net profits of games of bingo for a period longer than one year from the date such profits were earned must apply to the licensing authority for special permission and upon good cause shown the authority may grant the request.

N. Any licensee which does not report during any one-year period the amount of its net profits, if any, shall be required to show cause before the licensing authority why its license to conduct games of bingo should not be revoked.

O. The licensing authority shall require a licensee which does not conduct bingo games during any one year period to show cause why its license to conduct games of bingo should not be cancelled.

P. Except as otherwise provided by this section, a prize greater in amount or value than one thousand dollars shall not be offered or given in any single game of bingo conducted under any such license, and total prizes shall not exceed an amount or value greater than three thousand dollars for any occasion. Door prizes, discounts or other inducements with a value exceeding two hundred fifty dollars per occasion shall not be offered or given away.

Q. Except for a class A licensee, on application to the licensing authority by the licensee the licensing authority may authorize one special bonus game to be played at weekly consecutive occasions with a quarterly prize limit of twelve thousand dollars. A weekly consecutive occasion is an occasion played on the same day of each week during the quarter. The special bonus game may be played at each weekly consecutive occasion subject to the rules adopted by the licensing authority. The special bonus game is not subject to the prize limits prescribed by subsection P of this section.

R. The equipment used in playing bingo and the method of play shall be such that each card shall have an equal opportunity to be a winner. The objects or balls to be drawn shall be essentially the same as to size, shape, weight, balance and all other characteristics that may influence their selection. All objects or balls shall be present in the receptacle before each game is begun. All numbers announced shall be plainly and clearly audible or visible to all the players present. Where more than one room is used for any one game, the receptacle, the person calling the numbers as they are drawn and the person removing the objects or balls from the receptacle must be present in the room where the greatest number of players is present and all numbers announced shall be plainly audible or visible to the players in that room and also audible or visible to the players in the other room or rooms. The cards or sheets of the players shall be part of a deck, group or series of cards, no two of which shall be alike, and which deck, group or series shall not be so prepared or arranged as to prefer any card. A licensee may provide braille cards for legally blind persons as defined in section 41-1973 or allow legally blind persons to supply their own braille cards. A legally blind person supplying the person's own cards shall pay a fee to the licensee equal to that which would be charged if the legally blind person obtained the cards from the licensee. The bingo game activity shall be conducted and recorded in a manner as prescribed by the licensing authority to verify the gross receipts from each occasion.

S. The receptacle, the person calling the numbers as they are drawn and the person removing the objects or balls from the receptacle must be visible to all the players at all times except where more than one room is used for any one game and subsection R of this section applies.

T. The particular arrangement of numbers required to be covered in order to win the game and the amount of the prize shall be clearly and audibly or visibly described and announced to the players immediately before each game is begun.

U. Any players shall be entitled to call for a verification of all numbers drawn at the time a winner is determined, and for a verification of the objects or balls remaining in the receptacle and not yet drawn. The verification shall be made in the immediate presence of the supervisor and in full view of any player requesting the verification.

V. A person who is not physically present on the premises where the game is actually conducted shall not be allowed to participate as a player in the game.

W. A person who holds, operates or conducts, or assists in holding, operating or conducting, a game of bingo shall not play at any occasion at which such person works unless the game of bingo is conducted pursuant to a class A license.

X. A person shall not conduct a lottery or raffle within a twelve hour period before or after a bingo occasion or game on any premises used for bingo games or within one thousand feet of the bingo game. This subsection does not affect any legally conducted activity related to the state lottery.

§ 5-407. Statement of receipts; expenses; penalty

A. On or before the twentieth day after the end of every reporting period designated for the class of the license each licensee shall file with the licensing authority upon forms prescribed by the licensing authority a financial report which is signed and sworn to by the proceeds coordinator showing the amount of the gross receipts derived during the reporting period from games of bingo, the expenses paid, a brief description of the classification of such expenses, the ratio of net proceeds to the adjusted gross receipts received by the licensee during the reporting period, the name and address of each person to whom has been paid three hundred dollars or more and the purpose of such expenditure, the net proceeds derived from each such game of bingo and the uses to which such net proceeds have been or are to be applied. Each licensee shall maintain and keep such books and records as may be necessary to substantiate the particulars of each such report.

B. Except for class A licensees, if the net proceeds derived from the games of bingo for any six consecutive months do not amount to at least fifty per cent of adjusted gross receipts for those months in total, it shall be presumed that the expenses incurred for goods, wares, merchandise and services rendered are not bona fide and reasonable, and the operation of the game is deemed to be against public policy. If the net proceeds of the games operated by a licensee are less than fifty per cent of the adjusted gross receipts in any six consecutive months, the license may be revoked.

C. The failure to file reports within forty-five days after their due date, or if reports are not fully, accurately and truthfully completed, may be the basis of the revocation of the license. If the licensee fails to make and file a return on or before the due date, unless the failure is due to reasonable cause, a penalty equal to five per cent of the amount found to be due or remaining due under subsection H of this section shall be added to that amount for each month or fraction of a month between the due date of the return and the date on which filed, plus interest at a rate determined pursuant to section 42-1123. The total penalty shall not exceed twenty-five per cent of the amount found to be remaining due. The penalty is due and payable on notice and demand from the licensing authority. If an action has been filed by the licensing authority for revocation of a license, the court shall award reasonable attorney fees to the licensing authority as a part of the proceedings if the licensing authority prevails in the proceedings.

D. Except for a class A licensee, all monies collected or received from the sale of admission, extra regular cards, special game cards, sale of supplies and all other receipts from the games of bingo shall be deposited in a special account of the licensee which shall contain only such money. Except for a class A licensee, all expenses for bingo games, except cash prizes in the amount of less than one hundred fifty dollars, shall be withdrawn from the licensee's special account by consecutively numbered checks duly signed by a specified officer or officers of the licensee or the supervisor and payable to a specific person or organization. Class A licensees shall pay all bingo game prizes, except cash prizes in an amount less than one hundred fifty dollars, by check duly signed by a specified person or persons or the supervisor. A check shall not be drawn to "cash" or a fictitious payee. A check drawn on a licensee's special account shall not be payable to the licensee. Checks drawn against the net proceeds in the special account shall be drawn only for lawful uses and purposes. The licensee may establish interest bearing accounts which shall contain only monies transferred from the licensee's special account, but all monies, interest and other proceeds shall be redeposited to the special account before being used for lawful uses and purposes.

E. A licensee shall maintain a permanent record containing the signature of each player who receives a cash prize from such licensee and the amount of the cash prize awarded to such player.

F. The net profits after they have been given over to another organization shall not be used by the donee organization to pay any person for services rendered or materials purchased in connection with the conducting of bingo by the donor organization.

G. Expenses shall not be incurred or paid in connection with holding, operating or conducting any game of bingo pursuant to any license, except bona fide expenses of a reasonable amount. Expenses may be incurred only for the following purposes:

1. The purchase of goods, wares and merchandise furnished.

2. Payment for services rendered.

3. Rent.

4. Accountants' fees.

5. License fees.

6. Utility expenses.

7. Security guards.

8. Compensation not to exceed the current federal minimum wage plus twenty per cent.

9. Mortgage payments when a nonprofit charitable organization licensee is using the building or premises for both bingo and for the licensee's bona fide charity.

10. Advertising. In this subsection:

(a) "Goods, wares and merchandise" means prizes, equipment and articles of a minor nature such as pencils, crayons, tickets, envelopes, paper clips and coupons necessary for the conduct of games of bingo.

(b) "Services rendered" means repair to equipment, reasonable compensation to bookkeepers or accountants, not more than two in the aggregate, for services in preparing financial reports and a reasonable amount for janitorial service and security guards. Services rendered do not include and no item of expense may be incurred or paid for service of any nature whatever rendered by a member or new member, including, without limitation except as provided by paragraph 8 of this subsection, equipment repair, bookkeeping, accounting, janitorial service, security guard service or operating, conducting or managing a bingo game or providing any professional or consultation service related to bingo.

H. In lieu of the taxes collected under title 42, chapter 5, article 1 there shall be paid to the state licensing authority a tax in the amount prescribed in section 5-414. The taxes collected pursuant to this section shall be deposited in the state general fund. All administrative receipts, including license fees, penalties and interest, collected by the state pursuant to this article shall be deposited in the state general fund.

I. Each licensee, at the time each financial report is submitted to the licensing authority, shall pay to the order of the licensing authority the amount of tax provided in subsection H of this section.

§ 5-408. Examination of books and records

The licensing authority and its agents shall have power to examine or cause to be examined the books, records and bingo paper inventory of any licensee to which any such license is issued so far as they may relate to any transactions connected with the holding, operating and conducting of any game of bingo. Such records shall be maintained and available to the licensing authority for a period of three years.

§ 5-409. Forfeiture of license; ineligibility to apply for license; classification

Any person who knowingly makes any false statement in any application for any license pursuant to this article or in any statement annexed to the application or fails to keep sufficient books and records to substantiate the financial reports required under section 5-407 or knowingly falsifies any books or records so far as they relate to any transaction connected with the holding, operating and conducting of any game of bingo under any license or violates any of the provisions of this article or of any term of a license is guilty of a class 2 misdemeanor and shall, if convicted, in addition to suffering any other penalties which may be imposed, forfeit any license issued to it pursuant to this article and shall be ineligible to apply for a license pursuant to this article for at least five years thereafter.

§ 5-410. Violation; classification

Every licensee and every officer, agent or employee of the licensee and every other person or corporation who knowingly violates any provision of this article is guilty of a class 3 misdemeanor unless another classification is specifically prescribed in this article. Any person who knowingly files a false report under this article is guilty of a class 6 felony.

§ 5-411. Credentials and authority of employees of the licensing authority

Each employee designated by the licensing authority to investigate compliance with this chapter shall, for identification purposes, possess credentials signed by the chief administration officer of the licensing authority and countersigned by the governor. When bearing such credentials the employee has the authority of a peace officer for the limited purposes of enforcing this chapter but does not thereby participate in the public safety personnel retirement system.

§ 5-412. Preemption by state of bingo taxation

Excise taxation of bingo is preempted by the state, and a county, city, town or other political subdivision of this state shall not levy an excise tax on bingo.

§ 5-413. License classification; requirements

A. A class A license may be issued to a person for the conduct of bingo games for which the gross receipts do not exceed fifteen thousand six hundred dollars per year. A class A license shall not be issued to a person who holds a license issued pursuant to title 4 except a club license issued pursuant to section 4-205. For a class A license:

1. Any person may apply as prescribed in this article.

2. The manager, proceeds coordinator, supervisor and assistant are not required to be members or new members.

3. The reporting period is one year coinciding with the term of the license.

B. A class B license may be issued to a qualified organization for the conduct of bingo games for which the gross receipts do not exceed three hundred thousand dollars per year. For a class B license:

1. Only a qualified organization may apply.

2. The manager and supervisor shall be members of the licensee.

3. The proceeds coordinator shall be an officer or director and a member of the licensee and is responsible for completion of the required financial report.

4. An assistant shall be a member or new member of the licensee.

5. There are four reporting periods coinciding with the quarters of the term of the license.

C. A class C license may be issued to a qualified organization for the conduct of bingo games for which the gross receipts exceed three hundred thousand dollars per year. For a class C license:

1. Only a qualified organization may apply.

2. The manager and supervisor shall be members of the licensee.

3. The proceeds coordinator shall be an officer or director and a member of the licensee and is responsible for completion of the required financial report.

4. An assistant shall be a member or new member of the licensee.

5. There are twelve reporting periods coinciding with each month of the term of the license.

§ 5-414. Fees; tax

The following fees and tax shall be assessed as prescribed in this article for the different license classes:

Local Governing

§ 5-415. Excessive gross receipts; change of license class

A. If a licensee's gross receipts exceed the limit set for the licensee's class of license, the licensee:

1. Shall immediately notify the licensing authority that the limit has been exceeded.

2. Shall submit any additional documents and meet any additional requirements for the new class of license applicable to the level of gross receipts.

3. Shall pay to the licensing authority the fee for the appropriate class of the license less the amount originally submitted for the previous class of the license.

4. Is liable for tax at the rate applicable to the new class of license and shall pay to the licensing authority the tax computed at this higher rate on the gross receipts for the expired portion of the term of the previous license less the taxes previously paid for gross receipts earned during this period.

B. The new class of license shall be issued for the remainder of the term of the previous license. At the expiration of this term the licensee may renew its new class of license or apply for another class of license if it has a good faith belief that it will qualify for the other class of license.

TITLE 15. REVENUE

CHAPTER 7. DEPARTMENT OF REVENUE
BINGO SECTION

(Authority: A.R.S. §§ 5-402, 42-105)

Arizona Administrative Code Supp. 03-3 - Released Sept. 30, 2003

ARTICLE 1. REPEALED

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

Section

R15-7-101. Repealed

R15-7-102. Repealed

ARTICLE 2. GENERAL PROVISIONS

Section

R15-7-201. Definitions

R15-7-202. Special Bonus Game

R15-7-203. Repealed

R15-7-204. Affidavits

R15-7-205. Reserved

R15-7-206. Monitoring

R15-7-207. Equipment Verification and Replacement

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

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

R15-7-210. Multiple Winners

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

R15-7-212. Erroneous Calls

R15-7-213. Verification of Winning Cards

R15-7-214. Arizona State Lottery Tickets

R15-7-215. Sale of Bingo Cards

R15-7-216. Duplicate Cards

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

R15-7-218. Notice of Charges

R15-7-219. Notice of Prizes

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

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

R15-7-222. Inducements

R15-7-223. Minors Prohibited from Play

R15-7-224. Repealed

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

R15-7-226. Legal Debts

R15-7-227. Repealed

R15-7-228. Conditions for Deducting Mortgage Payments

R15-7-229. Repealed

R15-7-230. Financial Report

R15-7-231. Repealed

R15-7-232. Bingo Bank Accounts

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

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

ARTICLE 3. LICENSING PROVISIONS

Section

R15-7-301. Repealed

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

R15-7-303. Change of Name

R15-7-304. Changes to the License

R15-7-305. Change of Mailing Address

R15-7-306. Termination of License

R15-7-307. Cancellation of an Occasion

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

ARTICLE 4. TAX PROVISIONS

Section

R15-7-401. Repealed

R15-7-402. Excess Payments

R15-7-403. Payment under Protest

R15-7-404. Repealed

R15-7-405. Deficiencies; Payment; Appeal

ARTICLE 5. SUSPENSION; REVOCATION; APPEALS

Section

R15-7-501. Repealed

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

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

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

ARTICLE 6. HEARING AND APPEAL PROCEDURES

Section

R15-7-601. Reserved

R15-7-602. Proper Parties

R15-7-603. Form of Objection

R15-7-604. Manner of Filing

R15-7-605. Reserved

R15-7-606. Supplementation of Petition

R15-7-607. Repealed

R15-7-608. Withdrawal of Petition

R15-7-609. Repealed

R15-7-610. Repealed

R15-7-611. Repealed

R15-7-612. Repealed

R15-7-613. Repealed

R15-7-614. Repealed

R15-7-615. Repealed

R15-7-616. Repealed

R15-7-617. Reserved

R15-7-618. Repealed

R15-7-619. Repealed

R15-7-620. Repealed

R15-7-621. Objections to Proposed Decision or Order of Hearing Officer; Request for Rehearing

R15-7-622. Appeal to Superior Court

ARTICLE 1. REPEALED

R15-7-101. Repealed

R15-7-102. Repealed

R15-7-201. Definitions

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

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

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

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

Bank account records,

Journals and ledgers,

Receipts and invoices,

Winner signature sheets,

Verification reports required under R15-7-225,

Game programs, and

Any other documents used in connection with bingo operations.

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

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

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

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

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

"Department" means the Arizona Department of Revenue.

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

"Inducement" means:

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

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

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

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

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

A right to sell or lease to a licensee, or

A right to reacquire property sold to a licensee.

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

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

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

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

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

R15-7-202. Special Bonus Game

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

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

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

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

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

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

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

6. The dollar value of each designated prize;

7. The type of card to be used; and

8. The cost per card to the player.

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

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

R15-7-203. Repealed

R15-7-204. Affidavits

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

R15-7-206. Monitoring

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

R15-7-207. Equipment Verification and Replacement

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

R15-7-210. Multiple Winners

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

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

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

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

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

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

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

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

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

R15-7-212. Erroneous Calls

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

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

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

R15-7-213. Verification of Winning Cards

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

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

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

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

R15-7-214. Arizona State Lottery Tickets

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

R15-7-215. Sale of Bingo Cards

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

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

R15-7-216. Duplicate Cards

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

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

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

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

R15-7-218. Notice of Charges

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

R15-7-219. Notice of Prizes

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

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

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

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

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

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

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

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

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

R15-7-222. Inducements

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

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

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

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

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

R15-7-223. Minors Prohibited from Play

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

R15-7-224. Repealed

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

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

1. The licensee's name and license number,

2. The number of players,

3. The name of the supervisor,

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

5. The total income from cards sold,

6. Itemization of bingo supplies sold,

7. Itemization of inducements provided,

8. A cash reconciliation,

9. The computation of adjusted gross receipts, and

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

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

R15-7-226. Legal Debts

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

R15-7-227. Repealed

R15-7-228. Conditions for Deducting Mortgage Payments

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

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

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

R15-7-229. Repealed

R15-7-230. Financial Report

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

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

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

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

R15-7-231. Repealed

R15-7-232. Bingo Bank Accounts

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

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

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

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

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

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

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

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

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

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

R15-7-301. Repealed

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

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

R15-7-303. Change of Name

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

R15-7-304. Changes to the License

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

R15-7-305. Change of Mailing Address

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

R15-7-306. Termination of License

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

R15-7-307. Cancellation of an Occasion

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

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

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

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

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

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

3. If an applicant fails to submit a complete license application package within 30 calendar days from the notice, the Department shall close th