Section 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.

2.        “Activated” means the process taken by retailers to make a pack of instant scratch tickets valid for sale to the gen- eral public.

3.        “Chapter” means Arizona Administrative Code, Title 19, Chapter 3.

4.        “Charitable Organization” means an organization includ- ing 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.

5.        “Controlling agent” means a stockholder, director, offi- cer, managerial employee, or other person directly or indirectly controlling or operating the retailer’s business.

6.        “Controlling person” means a person at least 21 years of age accountable for the Lottery license.

7.        “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.

8.        “Instant scratch ticket” means an instant game ticket where the protective covering is made of latex or another substance that is scratched off.

9.        “Instant tab ticket” 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.

10.     “License” means:

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 tickets.

c.         “Instant tab license” means a license to sell only instant tab tickets.

11.     “Limited license” means a license issued by the Lottery that restricts 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.

12.     “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.

13.     “Minor” means an individual under the age of 18.

14.     “On-line ticket” means a ticket purchased through a net- work of Lottery-authorized equipment linked to a central computer that records the wagers.

15.  “Partial pack of tickets” means less than a complete pack of consecutively numbered and connected tickets.

16.  “Premise manager” means the contact representative for a specific premise of a business or charitable organization.

17.     “Pull tab” means an instant game ticket where the protec- tive covering is a perforated paper tab that is opened to reveal the predetermined winning and non-winning sym- bols.

18.     “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.

19.  “Retailer” means a licensed provider of sales and redemp- tions services for Lottery products. A retailer may hold a full product license, a charitable organization license, an instant tab license, or a combination of licenses.

20.     “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.

21.     “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 tick- ets.

22.     “Retailer compensation” means all types of cash and non- cash compensation to the retailer for selling Lottery tick- ets.

23.     “Retailer compensation profile” means the written docu- ment in which the Lottery Commission authorizes the Director to issue an order that contains all the fundamen- tals required by these rules for retailer compensation including commission, bonus, and incentive compensa- tion to be credited to Lottery retailers.

24.     “Retailer incentive” means cash and non-cash methods to motivate action by the Lottery retailer to stimulate sales.

25.     “Sales benchmark” means sales objectives established by the Lottery based upon previous performance.

26.     “Ticket” means one or more Lottery game plays.

27.     “Validation” means confirmation of a winning Lottery ticket.

Historical Note

Adopted as an emergency effective May 26, 1981, pursu- ant 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 Septem- ber 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).