Ariz. Admin. Code § 19-3-202

Current through Register Vol. 30, No. 44, November 1, 2024

Section 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. 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.

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).

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).

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).

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.

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.

Ariz. Admin. Code § R19-3-202

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.