Section R19-3-202.01. Prerequisites to Issue or Renew a License

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, 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, 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 Disabili- ties Act, and shall not have sold Lottery products without being licensed within one year of the person’s date of applica- tion.

D.      An applicant for a full product 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 Ari- zona,

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 commis- sioners, officers, and employees, from and against any and all liability, damage, cost, claim, loss, or expense, including, without limitation, reasonable attorney’s fees and disburse- ments, resulting from or arising by reason of loss of use, tem- porary 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.

Historical Note

New Section made by final rulemaking at 18 A.A.R.

1471, effective August 7, 2012 (Supp. 12-2).