Section R19-3-204.02. Lottery Determination of Need for Emer- gency 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 retailer’s bank account has insufficient funds when the Lottery’s regularly-scheduled electronic transfer of the retailer’s account is returned by the bank as insuffi- cient funds or closed account and the retailer does not immediately pay the insufficiency;

2.        The retailer fails to comply or cooperate with an investi- gation concerning Arizona state laws or Lottery regula- tions;

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 arti- fices;

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 sells an altered or expired ticket;

6.        The retailer sells a ticket at a price greater than face value; or

7.        The retailer pays less than the full prize value of the ticket at validation.

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.

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.

Historical Note

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

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