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| Home > Statutes > Usa Arizona |
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USA Statutes : arizona
Title : Amusements and Sports
Chapter : STATE LOTTERY
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5-501 Definitions
In this chapter, unless the context otherwise requires:
1. "Commission" means the ARIZONA state lottery commission.
2. "Director" means the executive director of the ARIZONA state lottery commission.
3. "Lottery" or "state lottery" means the lottery created and operated pursuant to
this chapter.
5-502 ARIZONA state lottery commission;membership; appointment; term; chairman; removal; reimbursement ofexpenses
A. There is established the ARIZONA state lottery commission consisting of five
members who shall be citizens and residents of this state and appointed by the governor
pursuant to section 38-211. No more than three members may be from the same political
party. The term of members appointed to the commission is five years. The commission
members shall annually elect one of the members to serve as chairman of the commission.
B. At least one member of the commission shall have a minimum of five years'
experience in law enforcement.
C. At least one member of the commission shall have a minimum of five years'
experience as a certified public accountant.
D. At least one member of the commission shall have a minimum of five years'
experience in marketing or advertising, or both.
E. At least one member of the commission shall have a minimum of five years'
experience in convenience store, minimart or grocery retailing.
F. Any member of the commission may be removed from office by the governor for
cause upon notice and opportunity to be heard at a public hearing.
G. Members of the commission are eligible to receive compensation pursuant to
section 38-611.
H. The commission shall hold at least one meeting each quarter.
I. No commission member may have a pecuniary interest in any contract or agreement
to which the commission is a party.
J. No action of the commission is binding unless taken at a meeting with at least
three members present voting in favor of the action in question.
5-503 Executive director; appointment
A. An executive director appointed by the governor pursuant to section 38-211 shall
exercise immediate supervision over the lottery. The director shall be a person
qualified by training and experience to administer the state lottery. The director shall
be appointed by the governor and shall serve at the pleasure of the governor.
B. The director shall devote his entire time and attention to the administration of
the state lottery and shall not be engaged in any other profession or occupation. The
director is eligible to receive compensation pursuant to section 38-611.
5-504 Commission; director; powers and duties;definitions
A. The commission shall meet with the director not less than once each quarter to
make recommendations and set policy, receive reports from the director and transact other
business properly brought before the commission.
B. The commission shall oversee a state lottery to produce the maximum amount of
net revenue consonant with the dignity of the state. To achieve these ends, the
commission shall authorize the director to adopt rules in accordance with title 41,
chapter 6. Rules adopted by the director may include provisions relating to the
following:
1. Subject to the approval of the commission, the types of lottery games and the
types of game play-styles to be conducted.
2. The method of selecting the winning tickets or shares for noncomputerized
on-line games, except that no method may be used which, in whole or in part, depends on
the results of a dog race, a horse race or any sporting event.
3. The manner of payment of prizes to the holders of winning tickets or shares
including providing for payment by the purchase of annuities in the case of prizes
payable in installments, except that the commission staff shall examine claims and may
not pay any prize based on altered, stolen or counterfeit tickets or based on any tickets
which fail to meet established validation requirements, including rules stated on the
ticket or in the published game rules, and confidential validation tests applied
consistently by the commission staff. No particular prize in a lottery game may be paid
more than once, and in the event of a binding determination that more than one person is
entitled to a particular prize, the sole remedy of the claimants is the award to each of
them of an equal portion of the single prize.
4. The method to be used in selling tickets or shares, except that no elected
official's name may be printed on such tickets or shares. The overall estimated odds of
winning some prize or some cash prize, as appropriate, in a given game shall be printed
on each ticket or share.
5. The licensing of agents to sell tickets or shares, except that a person under
the age of eighteen shall not be licensed as an agent.
6. The manner and amount of compensation to be paid licensed sales agents necessary
to provide for the adequate availability of tickets or shares to prospective buyers and
for the convenience of the public, including provision for variable compensation based on
sales volume.
7. Matters necessary or desirable for the efficient and economical operation and
administration of the lottery and for the convenience of the purchasers of tickets or
shares and the holders of winning tickets or shares.
C. The commission shall authorize the director to issue orders and shall approve
orders issued by the director for the necessary operation of the lottery. Orders issued
under this subsection may include provisions relating to the following:
1. The prices of tickets or shares in lottery games.
2. The themes, game play-styles, and names of lottery games and definitions of
symbols and other characters used in lottery games, except that each ticket or share in a
lottery game shall bear a unique distinguishable serial number.
3. The sale of tickets or shares at a discount for promotional purposes.
4. The prize structure of lottery games, including the number and size of prizes
available. Available prizes may include free tickets in lottery games and merchandise
prizes.
5. The frequency of drawings, if any, or other selections of winning tickets or
shares, except that:
(a) All drawings shall be open to the public.
(b) The actual selection of winning tickets or shares may not be performed by an
employee or member of the commission.
(c) Noncomputerized on-line game drawings shall be witnessed by an independent
observer.
6. Requirements for eligibility for participation in grand drawings or other runoff
drawings, including requirements for the submission of evidence of eligibility within a
shorter period than that provided for claims by section 5-518.
7. Incentive and bonus programs designed to increase sales of lottery tickets or
shares and to produce the maximum amount of net revenue for this state.
D. Notwithstanding title 41, chapter 6 and subsection B of this section, the
director, subject to the approval of the commission, may establish a policy, procedure or
practice that relates to an existing on-line game or a new on-line game which is the same
type and has the same type of game play-style as an on-line game currently being
conducted by the lottery or may modify an existing rule for an existing on-line game or a
new on-line game which is the same type and has the same type of game play-style as an
on-line game currently being conducted by the lottery, including establishing or
modifying the matrix for an on-line game by giving notice of the establishment or
modification at least thirty days before the effective date of the establishment or
modification.
E. The commission shall maintain and make the following information available for
public inspection at its offices during regular business hours:
1. A detailed listing of the estimated number of prizes of each particular
denomination expected to be awarded in any instant game currently on sale.
2. After the end of the claim period prescribed by section 5-518, a listing of the
total number of tickets or shares sold and the number of prizes of each particular
denomination awarded in each lottery game.
3. Definitions of all play symbols and other characters used in each lottery game
and instructions on how to play and how to win each lottery game.
F. Any information that is maintained by the commission and that would assist a
person in locating or identifying a winning ticket or share or that would otherwise
compromise the integrity of any lottery game is deemed confidential and is not subject to
public inspection.
G. The commission shall, in addition to other games authorized by this article,
establish two special games for each year to be conducted concurrently with other lottery
games authorized under subsection B of this section. The monies for prizes, for
operating expenses and for payment to the commerce and economic development commission
fund, as provided in section 5-522, subsection A, paragraph 3, shall be accounted for
separately as nearly as practicable in the lottery commission's general accounting
system. The monies shall be derived from the revenues of the special games, and monies
for prizes do not become an expense to the lottery commission's annual appropriation as
provided in section 5-505, subsection D and section 5-522, subsection H. Monies saved
from the revenues of the special games, by reason of operating efficiencies, shall become
other revenue of the lottery commission and revert to the state general fund.
H. The commission may, in addition to other games authorized by this article,
establish multistate lottery games to be conducted concurrently with other lottery games
authorized under subsections B and H of this section. The monies for prizes, for
operating expenses and for payment to the local transportation assistance fund, as
provided in section 28-8101, and the state general fund shall be accounted for separately
as nearly as practicable in the lottery commission's general accounting system. The
monies shall be derived from the revenues of multistate lottery games.
I. The commission or director shall not establish or operate any on-line or
electronic keno game or any game played on the internet.
J. The director shall print, in a prominent location on each lottery ticket or
share, a statement that help is available if a person has a problem with gambling and a
toll free telephone number where problem gambling assistance is available. The director
shall require all licensed agents to post a sign with the statement that help is
available if a person has a problem with gambling and the toll free telephone number at
the point of sale as prescribed and supplied by the director. The requirements of this
subsection apply to tickets and shares printed after July 18, 2000.
K. For the purposes of this section:
1. "Game play-style" means the process or procedure that a player must follow to
determine if a lottery ticket or share is a winning ticket or share.
2. "Matrix" means the odds of winning a prize and the prize payout amounts in a
given game.
5-505 Apportionment of revenue
A. Not more than eighteen and one-half per cent of the total annual revenues
accruing from the sale of lottery tickets or shares and from all other sources shall be
deposited in the state lottery fund established pursuant to section 5-521 to be expended
for the following:
1. The payment of costs incurred in the operation and administration of the
lottery, including the expenses of the commission and the costs resulting from any
contract or contracts entered into for consulting or operational services, or for
promotional and advertising services. Not more than four per cent of the total annual
gross revenues of the lottery shall be expended for promotional or advertising services.
2. Independent audits, which shall be performed annually in addition to the audits
required by section 5-524.
3. Incentive programs for lottery sales agents and lottery employees.
4. Payment of compensation to licensed sales agents necessary to provide for the
adequate availability of tickets or services to prospective buyers and for the
convenience of the public. Compensation of licensed sales agents shall be at least six
and one-half per cent but not more than seven per cent of the price of each ticket or
share that a retail sales agent sells in instant games and on-line games, less the price
of any tickets or shares that are voided.
5. The payment of reasonable fees to redemption agents as authorized by section
5-519.
6. The purchase or lease of lottery equipment, tickets and materials.
B. Not less than twenty-nine per cent of the total annual revenues accruing from
the sale of lottery tickets or shares in on-line games and not less than twenty-one and
one-half per cent of the total annual revenues accruing from the sale of lottery tickets
or shares in instant games shall be deposited in the state lottery fund established
pursuant to section 5-521 to be used as prescribed in section 5-522, subsection A,
paragraphs 3, 4, 5 and 6, and section 5-522, subsections B, C, D and E.
C. Not less than fifty per cent of the total annual revenues accruing from the sale
of lottery tickets or shares shall be deposited in the state lottery prize fund
established pursuant to section 5-523 for payment of prizes to the holders of winning
tickets or shares or for other purposes provided for in section 5-518.
D. Except for monies for prizes expended as provided in section 5-504, subsection H
and section 41-1505.10, monies expended under subsection A of this section shall be
subject to legislative appropriation.
5-506 Powers and duties of director
In addition to other powers and duties prescribed in this chapter, the director
shall:
1. Supervise and administer the operation of the lottery in accordance with this
chapter and the rules adopted under this chapter, subject to the continuous duty to take
into account the particularly sensitive and responsible nature of the commission's
functions.
2. Enforce this chapter and the rules adopted under this chapter. The director
shall accept allegations of any violations of the laws of this state or rules pertaining
to the conduct of the lottery.
3. Pursuant to this chapter and the rules adopted by the commission, license as
agents to sell lottery tickets such persons as will best serve the public convenience and
promote the sale of tickets or shares.
4. Hire such professional, clerical, technical and administrative personnel as may
be necessary to carry out this chapter. The director shall conduct background checks of
prospective employees, and, in all employment decisions, shall take into account the
particularly sensitive and responsible nature of the operation of the state lottery.
5. Act as secretary and executive officer of the commission.
6. Confer regularly as necessary or desirable and not less than once every quarter
with the commission on the operation and administration of the lottery.
7. Make available for inspection by the commission, upon request, all books,
records, files and other information and documents of the commission.
8. Advise the commission and recommend matters as are necessary and advisable to
improve the operation and administration of the lottery.
9. Suspend or revoke any license issued pursuant to this chapter or the rules
adopted pursuant to this chapter, subject to appeal to the commission.
10. Within thirty days after receiving an allegation of a violation of the laws of
this state or rules pertaining to the conduct of the lottery by a licensed agent and
evidence substantiating the allegation, determine whether the agent has violated the
rules or if a criminal investigation is warranted.
5-507 Monthly reports; annual report
A. The director shall make a monthly report to the commission, the governor, the
speaker of the house of representatives and the president of the senate. The monthly
report shall include the total lottery revenue, prize disbursements and other expenses
for the preceding month.
B. The commission shall make an annual report to the governor, the speaker of the
house of representatives and the president of the senate. The annual report shall include
a full and complete statement of lottery revenues, prize disbursements and other expenses
for the preceding years, and recommendations for amendments to this chapter as the
commission deems necessary or desirable.
5-508 Studies and investigations
A. The director shall conduct an ongoing study and investigation of the lottery for
the following purposes:
1. To ascertain any defects in this chapter or in the rules through which any
abuses in the administration and operation of the lottery or any evasion of this chapter
or the rules may arise or be practiced.
2. To formulate recommendations for changes in this chapter.
3. To guard against the use of this chapter and the rules as a cloak for organized
gambling and crime.
4. To insure that this chapter and the rules are in a form and are administered to
serve the true purposes of this chapter.
B. The director shall conduct an ongoing study and investigation of the operation
and the administration of lottery laws in effect in other states or countries, any
literature on the subject that may be published or available, any federal laws that may
affect the operation of the lottery and the reaction of citizens to existing and
potential features of the lottery with a view to recommending or effecting changes that
will tend to serve the purposes of this chapter. 5-509 Contracts; limitation;restrictions
A. Notwithstanding any other statute, the director may:
1. Directly solicit bids and contract for the design and operation of the lottery
or the purchase of lottery equipment, tickets and related materials.
2. Contract to effectuate the purposes of this chapter and the rules promulgated
pursuant to this chapter.
3. Subject to joint legislative budget committee approval acquire administrative
office facilities and related facilities and equipment for the use of the commission by
lease, purchase or lease-purchase.
B. Procurement pursuant to this section shall be performed as prescribed in section
41-2501, subsection F. Bids received under this section may be deemed confidential in
whole or in part by the director if required on account of the sensitive and responsible
nature of the commission's functions and the paramount considerations of security and
integrity.
C. Any award made by the director pursuant to this section becomes effective and
binding on the commission unless it is rejected by the commission at a meeting held
within fourteen calendar days after the award is communicated to the members of the
commission.
D. A contract awarded or entered into by the director pursuant to this section
shall not be assigned by the holder except by specific approval of the director. In all
awards of contracts pursuant to this section, the director shall take particular account
of the sensitive and responsible nature of the commission's functions and the paramount
considerations of security and integrity.
5-510 Security operations; powers; peaceofficer status
A. The state lottery commission shall maintain operations responsible for
security. The director shall appoint a security officer to supervise the security
operations of the commission.
B. The security operations of the state lottery commission shall be a law
enforcement agency and the supervising security officer is designated a peace
officer. Such law enforcement agency and peace officer status shall be for the limited
purpose of receiving investigative information from law enforcement agencies pertaining
to investigations of lottery activities.
C. No employee of the lottery commission is eligible for participation in the
public safety personnel retirement system.
5-511 Department of public safety;investigation; authority; payment
The director of the department of public safety shall order an investigation into
any violation of a statute of this state which pertains to the conduct of the state
lottery. The director shall include in the commission's overhead expenses and pay, upon
certified invoice submitted by the director of the department of public safety, any
charges for actual expenses as a result of investigations and related law enforcement
activities, or for any activity directly or indirectly related to the lottery
operation. The charges may include costs for personnel, supplies, materials, equipment
and travel within or without the state.
5-512.01 Prosecution; payment of costs
A. The attorney general and county attorneys have concurrent prosecution authority
for any offense arising out of or in connection with the formation, management, operation
or conduct of the state lottery.
B. The director shall include, as an expense of the commission, all costs incurred
by the attorney general or a county attorney as a result of prosecution of a person for a
violation of the provisions of this article or for any violation directly or indirectly
related to the state lottery operation. The director shall authorize reimbursement of
prosecution costs on presentation of a certified invoice signed by the attorney general
or a county attorney.
C. As used in this section prosecution costs may include but are not limited to
costs for personnel, expenses, fees and other costs necessary in the preparation and
prosecution of a person charged with a violation of the provisions of this article.
5-512 Licenses to sell tickets or shares; fee;conditions; definitions
A. A license as an agent to sell lottery tickets or shares shall not be issued to
any person to engage in business exclusively as a lottery sales agent. Before issuing a
license as a lottery sales agent to any person the director shall consider factors such
as the financial responsibility and security of the person and the nature of the person's
business activity, the person's background and reputation in the community, the
accessibility of the person's place of business or activity to the public, the
accessibility of existing licensees to serve the public convenience and the volume of
expected sales.
B. A person lawfully engaged in nongovernmental business on state property may be
licensed as a lottery sales agent.
C. The director may establish by rule and collect a fee for a license issued
pursuant to this section.
D. A license is not assignable or transferrable.
E. A licensed agent or licensed agent's employee may sell lottery tickets or shares
only on the premises stated in the license of the agent.
F. The director may purchase a blanket bond covering the activities of licensed
agents.
G. A licensed agent shall display the licensed agent's license or a copy of the
license conspicuously in accordance with the rules prescribed by the director.
H. If a licensed agent sells lottery tickets or shares on leased premises and all
or part of the agent's rental payments are based on the total volume of sales made at the
premises, the compensation paid by the state lottery commission to the agent for the sale
of tickets and shares is the amount of the sale for the purposes of determining the
agent's rental payments. This subsection does not apply if the lease agreement expressly
provides that the total volume of sales made at the premises includes sales of lottery
tickets or shares.
I. By March 31, 2001, the commission shall adopt rules to establish penalties for a
licensed agent who violates section 5-515 or 5-515.01. The penalty for a subsequent
violation within any twelve month period shall be more severe than the penalty for a
prior violation.
J. The director shall not require a licensed agent, as a condition of securing or
continuing to hold a license to sell or to sell lottery tickets or shares to the public,
to sell such tickets or shares through or by the use of a self-service vending machine at
the licensed agent's premises.
K. For the purposes of this section, acts or omissions of an employee at the
premises of a licensed agent or sales of tickets or shares by vending machine in
violation of section 5-515 or 5-515.01 shall be deemed acts or omissions of the licensed
agent only at the premises where the acts, omissions or sales occurred.
L. For the purposes of this section:
1. "Person" means an individual, association, corporation, club, trust, estate,
society, company, joint stock company, receiver, trustee or referee, any other person
acting in a fiduciary or representative capacity who is appointed by a court, or any
combination of individuals. Person includes any department, commission, agency or
instrumentality of this state, including any county, city or town and any agency or
instrumentality of this state or of a county, city or town.
2. "Premises" means the physical location and address listed on the license of the
licensed agent where lottery tickets or shares may be sold.
5-513 Right to prize not assignable;exceptions
A. The right of any person to a prize is not assignable, except that:
1. Payment of any prize drawn or the remainder of any annuity purchased may be paid
to any of the following:
(a) The estate of a deceased prize winner.
(b) The beneficiary of a deceased prize winner.
(c) A person pursuant to an appropriate judicial order.
2. Payments to winners in an amount of six hundred dollars or more are subject to
setoff pursuant to section 5-525.
3. In the event of a voluntary assignment, the remainder of any annuity, or a
portion of the remainder of the annuity, may be assigned by a prize winner pursuant to an
appropriate judicial order if all of the following conditions are met:
(a) The prize winner provides an affidavit to the court to the effect that the
affiant is of sound mind, not acting under duress and has received independent financial
and tax advice concerning the assignment.
(b) The assignee pays the prize winner a lump sum for all amounts that are due to
the prize winner under the assignment agreement on or before the date that the assignment
takes effect.
(c) The parties to the assignment pay a fee to the commission to defray the
expenses incurred by the commission in processing the assignment. The commission shall
determine the amount of the fee. Monies collected by the commission pursuant to this
subdivision shall be deposited in the state lottery fund established by section 5-521.
B. On receipt of a court order that meets the requirements of subsection A,
paragraph 3 of this section, the director shall make the voluntary assignment.
C. The commission and director shall be discharged of all further liability upon
payment of a prize pursuant to this section.
5-514 Sale at unauthorized price or byunauthorized persons; violation; classification
A. A person shall not sell a ticket or share at a price greater than that fixed by
rule. A person other than a licensed lottery sales agent or any employee of an agent
acting within the scope of his employment shall not sell lottery tickets or shares. This
section does not prohibit a person from giving lottery tickets or shares to another
person as a gift.
B. A person who violates this section is guilty of a class 1 misdemeanor.
5-515.01 Sale to persons using state issued electronic benefits transfer cards; violation; classification
A. It is unlawful for a licensed agent to sell a lottery ticket or share to a
person who uses either a public assistance voucher issued by any public entity or an
electronic benefits transfer card issued by the department of economic security to
purchase the ticket or share.
B. It is unlawful for a licensed agent to sell a lottery ticket or share during the
same transaction in which a person uses either a public assistance voucher issued by any
public entity or an electronic benefits transfer card issued by the department of
economic security.
C. A person who violates this section is guilty of a class 3 misdemeanor.
5-515.02 Purchase of lottery tickets or shares by minors or persons under twenty-one years of age; penalty
A. Until June 1, 2003, it is unlawful for a person under eighteen years of age to
purchase a lottery ticket or share. Beginning on June 1, 2003, it is unlawful for a
person under twenty-one years of age to purchase a lottery ticket or share.
B. Until June 1, 2003, a person under eighteen years of age who knowingly purchases
a lottery ticket or share is guilty of a petty offense. Beginning on June 1, 2003, it is
unlawful for a person under twenty-one years of age to purchase a lottery ticket or
share.
5-515 Sale of tickets or shares to underagepersons; violation; classification
A. Until June 1, 2003, it is unlawful for a person to sell or offer to sell a
lottery ticket or share to any person who is under eighteen years of age. Beginning on
June 1, 2003, it is unlawful for a person to sell or offer to sell a lottery ticket or
share to any person who is under the age of twenty-one years.
B. A person who violates this section is guilty of a class 3 misdemeanor.
5-516 Alteration of lottery tickets; violation;classification
Any person who, with intent to defraud, falsely makes, alters, forges, utters,
passes or counterfeits a state lottery ticket or share is guilty of a class 3 felony.
5-517 Purchase of tickets and receipt of prizesby certain persons prohibited
A. A lottery ticket or share may not be purchased by and a prize may not be paid to
an officer or employee of the commission or to any spouse, child, brother, sister or
parent residing as a member of the same household in the principal place of residence of
such officer or employee.
B. A lottery ticket or share may not be purchased by and a prize may not be paid to
any of the following persons:
1. An officer or employee of any person contracting with the commission to supply
gaming equipment or lottery tickets, advertising or consulting services or to draw or
otherwise select winning tickets or shares if the officer or employee is involved in the
direct provision of goods or services to the commission or has access to information made
confidential by the commission.
2. A spouse, child, brother, sister or parent residing as a member of the same
household in the principal place of residence of a person described in paragraph 1.
3. The immediate supervisor of a person described in paragraph 1.
5-518 Disposition of unclaimed prizemoney
Unclaimed prize money for the prize on a winning ticket or share shall be retained
for the person entitled to the prize for one hundred eighty days after the drawing in
which the prize was won in the case of a drawing prize and for one hundred eighty days
after the announced end of the game in question in the case of a prize determined in any
manner other than by means of a drawing. If a claim is not made for the money within the
applicable period, seventy per cent of the prize money shall be held in the state lottery
prize fund for use as additional prizes in future games and thirty per cent shall be
transferred monthly to the court appointed special advocate fund established by section
8-524. 5-519 Lottery redemption agents
The director may make arrangements for redemption agents to perform functions,
activities or services in connection with the operation of the lottery, including direct
payment of prizes not exceeding five thousand dollars, as he deems advisable pursuant to
this chapter and the rules promulgated under this chapter. The director may make
arrangements for payment of reasonable fees for such services. Notwithstanding any other
statute, such functions, activities or services constitute lawful functions, activities
and services of banks, savings and loan associations and credit unions.
5-520 Award of prize to certain personsprohibited
Until June 1, 2003, no prize may be paid on any winning ticket or share to any
person who is under eighteen years of age. Beginning on June 1, 2003, no prize may be
paid on any winning ticket or share to any person who is under twenty-one years of age.
5-521 State lottery fund
The state lottery fund is established consisting of all revenues received from the
sale of lottery tickets or shares, the fees, if any, charged pursuant to section 5-504
and all other monies credited or transferred from any other fund or source pursuant to
statute, with the exception of those monies apportioned for payment of prizes and
deposited as provided in section 5-523.
5-522 Use of monies in state lotteryfund
(Caution: 1998 Prop. 105 applies)
A. The monies in the state lottery fund shall be expended only for the following
purposes and in the order provided:
1. For the expenses of the commission incurred in carrying out its powers and
duties and in the operation of the lottery.
2. For payment to the commerce and economic development commission fund established
by section 41-1505.10 of not less than twenty-one and one-half per cent of the revenues
received from the sale of two special lottery games conducted for the benefit of economic
development.
3. Except as provided in subsection F of this section, for payment to the local
transportation assistance fund established by section 28-8101 of not less than
twenty-nine per cent of the revenues received from the sale of multistate lottery games,
up to a maximum of eighteen million dollars each fiscal year.
4. For payment to the state general fund of not less than twenty-one and one-half
per cent of the revenues received from the sale of any instant bingo games conducted by
the state lottery and not less than twenty-nine per cent of the revenues received from
the sale of any on-line three-number games conducted by the state lottery, up to a
maximum of ten million dollars each fiscal year, except that if on or before June 1 of
each fiscal year the state lottery director determines that monies available to the
ARIZONA state parks board heritage fund under subsection D of this section may not equal
ten million dollars in that fiscal year or that the monies available to the ARIZONA game
and fish commission heritage fund under subsection D of this section may not equal ten
million dollars in that fiscal year, or both, the director shall authorize deposits to
the ARIZONA state parks board heritage fund in an amount so that the total monies in that
fund in that fiscal year equal ten million dollars or to the ARIZONA game and fish
commission heritage fund in an amount so that the total monies in that fund in that
fiscal year equal ten million dollars, or both. The state lottery director shall not make
any deposits pursuant to this paragraph until after the director's determination each
fiscal year.
5. Of the monies remaining in the state lottery fund from the sale of instant bingo
games and on-line three-number games each fiscal year, thirty per cent shall be allocated
to the funds and programs described in subsection E of this section and seventy per cent
shall be deposited in the local transportation assistance fund established by section
28-8101. The director shall not allocate more than the amount specified in subsection E
of this section for each fiscal year to the funds and programs described in subsection E
of this section from the state lottery fund pursuant to this paragraph and subsection E
of this section. A maximum of eighteen million dollars may be deposited in the local
transportation assistance fund each fiscal year from the state lottery fund pursuant to
this paragraph and paragraph 3 of this subsection.
B. Of the monies remaining in the state lottery fund after the appropriations
authorized in subsection A of this section seventy-five per cent up to a maximum of
twenty-three million dollars each fiscal year shall be deposited in the local
transportation assistance fund established pursuant to section 28-8101 and twenty-five
per cent up to a maximum of seven million six hundred fifty thousand dollars each fiscal
year shall be deposited in the county assistance fund established pursuant to section
41-175. Monies distributed pursuant to this subsection shall be in addition to monies
distributed pursuant to subsection A, paragraphs 4 and 6 of this section.
C. Notwithstanding subsection B of this section, if the state lottery director
determines at the beginning of any fiscal year that monies available to cities, towns and
counties under this section may not equal thirty million six hundred fifty thousand
dollars, the director shall not authorize deposits to the county assistance fund until
the deposits to the local transportation assistance fund equal twenty-three million
dollars.
D. Of the monies remaining in the state lottery fund each fiscal year after
appropriations and deposits authorized in subsections A, B and C of this section, ten
million dollars shall be deposited in the ARIZONA state parks board heritage fund
established pursuant to section 41-502 and ten million dollars shall be deposited in the
ARIZONA game and fish commission heritage fund established pursuant to section 17-297.
E. Of the monies remaining in the state lottery fund each fiscal year after
appropriations and deposits authorized in subsections A, B, C and D of this section, and
appropriations and deposits to the local transportation assistance fund authorized by
this section, five million dollars shall be allocated to the department of economic
security for the healthy families program established by section 8-701, four million
dollars shall be allocated to the ARIZONA board of regents for the ARIZONA area health
education system established by section 15-1643, three million dollars shall be allocated
to the department of health services to fund the teenage pregnancy prevention programs
established in Laws 1995, chapter 190, sections 2 and 3, two million dollars shall be
allocated to the department of health services for the health start program established
by section 36-697, two million dollars shall be deposited in the disease control research
fund established by section 36-274 and one million dollars shall be allocated to the
department of health services for the federal women, infants and children food
program. The allocations in this subsection shall be adjusted annually according to
changes in the GDP price deflator as defined in section 41-563 and the allocations are
exempt from the provisions of section 35-190, relating to lapsing of appropriations. If
there are not sufficient monies available pursuant to this subsection, the allocation of
monies for each program shall be reduced on a pro rata basis.
F. Notwithstanding subsection A, paragraph 3 of this section, if the state lottery
director determines that monies available to the state general fund from the sale of
multistate lottery games may not equal thirty-one million dollars in a fiscal year, the
director shall not authorize deposits to the local transportation assistance fund
pursuant to subsection A, paragraph 4 of this section until the deposits to the state
general fund from the sale of multistate lottery games equal thirty-one million dollars
in a fiscal year.
G. All monies remaining in the state lottery fund after the appropriations and
deposits authorized in this section shall be deposited in the state general fund.
H. Except for monies expended for prizes as provided in section 5-504, subsection H
and section 41-1505.10, monies expended under subsection A of this section shall be
subject to legislative appropriation. 5-523 State lottery prize fund; setoff forstate debts; notification to department of economic security
A. The state lottery prize fund is established. That portion of the gross proceeds
which is apportioned pursuant to section 5-505, subsection C shall be deposited, pursuant
to sections 35-146 and 35-147, directly in the state lottery prize fund as the commission
receives such proceeds and shall be available for payment of prizes to the holders of
winning tickets or shares or for the other purposes provided for in section
5-518. Procedures for payments to winners from this fund shall be established by rule or
order of the commission. Notwithstanding any other statute, transfers or payments to or
from the state lottery prize fund are not appropriations by the legislature, and
deposits in the state lottery prize fund are not subject to appropriation by the
legislature.
B. Payments to winners which are payable by the commission or lottery redemption
agents pursuant to this section in an amount of six hundred dollars or more are subject
to setoff under section 5-525.
C. The commission shall furnish the department of economic security with the names
and the social security numbers of persons who are paid lottery prizes or winnings in an
amount of six hundred dollars or more pursuant to this section for purposes prescribed by
section 41-1965. The department of economic security shall pay the commission for the
cost of furnishing the information.
5-524 Audit of accounts
The certified public accountant hired to perform the annual audit under section
5-505, subsection A, paragraph 2 shall conduct postaudits of all accounts and
transactions of the commission for each lottery game. The certified public accountant
conducting an audit under this chapter shall have access and authority to examine any and
all records of the commission, its redemption agents and its licensees.
5-525 Prizes; setoff for debts to stateagencies; definitions
A. The commission shall establish a liability setoff program by which state lottery
prize payments pursuant to section 5-523 may be used to satisfy debts which a person owes
this state. The program shall comply with the standards and requirements prescribed by
this section.
B. If a person owes an agency a debt, an agency may notify the commission,
furnishing at least the state agency or program identifier, the first name, last name,
middle initial and social security number of the debtor, and the amount of the
debt. This information shall be in the form the commission prescribes. Each agency
shall certify the information and update the information monthly. No information may be
transmitted by the department of revenue to the commission if the transmission would
violate title 42, chapter 2, article 1.
C. The commission shall match the information submitted by the agency with persons
who are entitled to a state lottery prize payment in an amount of six hundred dollars or
more. If there is a match, the commission shall set off the amount of the debt from the
prize due and notify the person of the person's right to appeal to the appropriate court,
or to request a review by the agency pursuant to agency rule. The person shall make such
a request or appeal within thirty days after the setoff. If the setoff accounts for only
a portion of the prize due, the remainder of the prize shall be paid to the person. The
commission shall promptly transfer the setoff, less the amount of the commission's fee,
to the agency.
D. If a person requests a review by the agency or provides the agency with proof
that an appeal has been taken to the appropriate court within thirty days after the
setoff and it is determined that the setoff was made in error under this section, the
agency shall reimburse the person with interest as determined pursuant to section
42-1123.
E. The basis for a request for review shall not include the validity of the claim
if its validity has been established at an agency hearing, by judicial review in a court
of competent jurisdiction in this or any other state or by final administrative decision
and shall state with specificity why the person claims the obligation does not exist or
why the amount of the obligation is incorrect.
F. The commission may prescribe a fee to be collected from each agency utilizing
the setoff procedure. The amount of the fee shall reasonably reflect the actual cost of
the service provided.
G. If agencies have two or more delinquent accounts for the same person, the
commission shall apportion the prize equally among them, except that a setoff to the
department of economic security for overdue support has priority over all other setoffs.
H. If the prize is insufficient to satisfy the entire debt, the remainder of the
debt may be collected by the agency as provided by law or resubmitted for setoff against
any other prize awarded.
I. An agency shall not enter into an agreement with a debtor for the assignment of
any prospective prize to the agency in satisfaction of the debt.
J. In this section:
1. "Agency" means a department, agency, board, commission or institution of this
state. Agency also means a corporation under contract with this state that provides a
service that would otherwise be provided by a department, agency, board, commission or
institution of this state if the contract specifically authorizes participation in the
liability setoff program and the attorney general's office has reviewed the contract and
approves of such authorization. The participation in the liability setoff program is
limited to debts related to the services the corporation provides for or on behalf of
this state.
2. "Debt" means an amount over one hundred dollars owed to an agency by a person
and may include interest, penalties, charges, costs, fees or any other amount. Debt also
includes monies owed by a person for overdue support and referred to the department of
economic security for collection.
3. "Overdue support" means a delinquency in court ordered payments for support or
maintenance of a child or for spousal maintenance to the parent with whom the child is
living if child support is also being enforced pursuant to an assignment or application
filed under 42 United States Code section 654 (6).
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