Bill Text: AZ SB1312 | 2017 | Fifty-third Legislature 1st Regular | Introduced
Bill Title: Electronic bingo
Spectrum: Partisan Bill (Republican 9-0)
Status: (Introduced - Dead) 2017-02-16 - Senate JUD Committee action: do pass amended/strike-everything, voting: (4-3-1-0) [SB1312 Detail]
Download: Arizona-2017-SB1312-Introduced.html
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REFERENCE TITLE: electronic bingo |
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State of Arizona Senate Fifty-third Legislature First Regular Session 2017
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SB 1312 |
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Introduced by Senators Borrelli: Burges, Fann, Montenegro, Worsley; Representatives Barton, Bowers, Cobb, Finchem
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AN ACT
Amending sections 5‑401, 5‑403, 5‑404, 5‑405, 5‑406, 5‑407, 5‑413 and 5‑414, Arizona Revised Statutes; amending title 5, chapter 4, article 1, Arizona Revised Statutes, by adding sections 5‑416, 5‑417, 5‑418, 5‑419, 5‑420, 5‑421, 5‑422, 5‑423, 5‑424, 5‑425, 5‑426, 5‑427, 5‑428, 5‑429, 5‑430, 5‑431, 5‑432, 5‑433, 5‑434, 5‑435, 5‑436, 5‑437, 5‑438, 5‑439, 5‑440, 5‑441, 5‑442, 5‑443, 5‑444 and 5‑445; relating to bingo.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 5-401, Arizona Revised Statutes, is amended to read:
5-401. Definitions
In this chapter, unless the context otherwise requires:
1. "Account access component" means A component within a technological aid that reads or recognizes account access media and that provides a patron with the ability to interact with an account.
2. "Account access medium" means A card that contains both a magnetic strip and a smart chip and that is inserted into or otherwise made to interact with an account access component in order to provide a patron with the ability to interact with an account.
1. 3. "Adjusted gross receipts" means the receipts remaining after deducting the monies paid for prizes from gross receipts.
4. "Advertised top prize" means The highest single prize available based on information contained in the prize schedule and help screens.
5. "Agent" means A person who is authorized to make decisions or to perform tasks or actions in conjunction with the operation of technological aids.
2. 6. "Applicant" means a person, a group of persons, or an organization or an authorized agent of a person, a group of persons or an organization that submits an application to the licensing authority for a license required under this chapter.
3. 7. "Assistant" means a person who is not a manager, supervisor or proceeds coordinator, who assists in conducting bingo games and who is designated as an assistant in the application for a license.
8. "Audit mode" means The mode in which it is possible to view the technological aid's accounting functions and statistics and perform nonplayer-related functions.
4. 9. "Auxiliary" means a formally organized body formed for the purpose of assisting a qualified organization in accomplishing its primary purposes and recognized by a licensee in writing to the licensing authority as the licensee for the purposes of this chapter.
10. "Bar license" means a bar license issued pursuant to section 4‑206.01.
11. "Beer and wine bar license" means a beer and wine bar license issued pursuant to section 4‑206.01.
12. "Cashless system" means A system that performs cashless transactions and that maintains records of those cashless transactions.
13. "Cashless transaction" means A movement of monies electronically from one component to another.
14. "CD-ROM" means Compact Disc Read‑Only Memory.
5. 15. "Charitable organization" means any organization including not more than one auxiliary of the organization, not for pecuniary profit, which that is operated for charitable purposes within this state and which that has been so engaged for two years prior to before making application for a license under this article.
6. 16. "Chartered branch or lodge or chapter of a national or state organization" means any branch or lodge or chapter of a national or state qualified organization.
17. "Club license" means a club license issued pursuant to section 4-205.
18. "Critical memory" means Memory locations that store data essential to the functionality of a technological aid and that maintain any of the following data:
(a) ACCOUNTING DATA.
(b) CURRENT CREDITS.
(c) CONFIGURATION DATA.
(d) LAST GAME PLAY RECALL INFORMATION REQUIRED BY this chapter.
(e) GAME PLAY RECALL INFORMATION FOR THE CURRENT GAME PLAY IF the game is INCOMPLETE.
(f) THE LAST NORMAL STATE that the SOFTWARE WAS IN BEFORE INTERRUPTION.
(g) Random Number Generator SEEDS IF those seeds are NECESSARY FOR MAINTAINING INTEGRITY.
(h) ENCRYPTION KEYS IF those keys are NECESSARY FOR MAINTAINING INTEGRITY.
(i) PROGRESSIVE PRIZE PARAMETERS AND CURRENT VALUES.
(j) THE FIVE MOST RECENT FINANCIAL INSTRUMENTS ACCEPTED BY TYPE.
(k) THE FIVE MOST RECENT CASHLESS TRANSACTIONS PAID AND THE FIVE MOST RECENT CASHLESS TRANSACTIONS ACCEPTED.
19. "DVD" means Digital Video Disc or Digital Versatile Disc.
20. "Electromagnetic interference" means The disruption of the operation of an electronic device when the device is in the vicinity of an electromagnetic field in the radio frequency spectrum that is caused by another electronic device.
21. "Electrostatic discharge" means A single event rapid transfer of electrostatic charge between two objects, usually resulting when two objects at different potentials come into direct contact with each other.
22. "Enroll" means The process by which a technological aid identifies and establishes communications with an additional system component to allow for bingo activity to take place on that component.
23. "EPROM" means Erasable Programmable Read‑Only Memory that is stored on a nonvolatile storage chip or device that may be filled with data and information and that, once written, is not modifiable, and that is retained even if there is no power applied to the system.
7. 24. "Equipment":
(a) Means the receptacle and numbered objects drawn from it, the master board upon on which such objects are placed as drawn, the cards or sheets bearing numbers or other designations to be covered and the objects used to cover them, the board or signs, however operated, used to announce or display the numbers or designations as they are drawn, the public address system, and all other articles essential to the operation, conduct and playing of bingo.
(b) includes any electronic, electromechanical or other physical COMPONENTS used in the operation, conduct and playing of bingo.
25. "Fault" means An event that, when detected by a bingo gaming system, causes a discontinuance of game play or other component functions.
26. "Financial instrument" means Cash in the form of United States currency.
27. "Financial instrument acceptor" means An Automated Teller Machine that allows a Patron to deposit cash into that Patron's deposit account.
28. "Financial instrument storage component" means Any component that stores financial instruments, such as an Automated Teller Machine.
29. "Flash memory" means a Nonvolatile memory that retains its data when the power is turned off and that can be electronically erased and reprogrammed without being removed from the circuit board.
8. 30. "Fraternal organization" means any organization within this state, except college and high school fraternities, not for pecuniary profit, which that is a branch or lodge or chapter of a national or state organization and exists for the common business, brotherhood or other interests of its members and which national or state organization has so existed for two years in Arizona prior to before making application for a license under this article. Fraternal organization shall also include not more than one auxiliary of such organization.
31. "Game software" means The operational program or programs that govern the operation, display of results or the awarding of prizes or credits for bingo.
32. "Gaming equipment" means All electronic, electromechanical, mechanical or other physical components used in the play of bingo.
9. 33. "Gross receipts" means the total of the following:
(a) The receipts from the sale of shares, tickets or rights in any manner connected with participation in a game of bingo or the right to participate therein, including any admission fee, charge for cards, daubers or other devices, the sale of equipment or supplies and all other miscellaneous receipts, excluding sales of food or beverages or other products which that are not required to play bingo games. Sales of technological aids between distributors and class A license holders are not considered gross receipts.
(b) Interest collected on the special account or interest bearing accounts established pursuant to section 5‑407.
34. "Hardware" means gaming equipment.
10. 35. "Homeowners association" means a nonprofit corporation or association that is established to own, lease or manage common, limited access lots, parcels, areas, grounds or streets of a real estate development and that has continuously engaged in those activities in this state for at least two years immediately before applying for a license.
36. "Interruption" means any form of improper or unexpected operation, component failure or interference to gaming equipment.
11. 37. "Lawful purposes" means the expenditure of net proceeds of a game of bingo exclusively by a licensee for the purposes of carrying out its mission and its aims or for the purpose of charity.
12. 38. "Lawful use" means the devotion of the entire net proceeds of a game of bingo exclusively to a lawful purpose or to lawful purposes.
13. 39. "License" means a license issued by the licensing authority pursuant to this article.
14. 40. "Licensee" means any person or qualified organization to which a license has been issued by the licensing authority.
15. 41. "Licensing authority" means the department of revenue.
16. 42. "Local governing body" means the governing body of a city or town or the board of supervisors of the county for locations outside a city or town.
17. 43. "Manager" means a person who has overall responsibility for conducting bingo games by on behalf of a licensee and is designated as a manager in the application for a license.
18. 44. "Member" means an individual who has qualified for membership in a qualified organization or its auxiliary pursuant to its bylaws, articles of incorporation, charter, rules or similar written instrument and who has been a member in good standing for at least two years.
45. "Modification" means a revision to any hardware or software used in a bingo gaming system.
19. 46. "Net proceeds" means the receipts less such expenses, charges, fees and deductions as are specifically authorized under this article.
20. 47. "New member" means an individual who has qualified and been approved by the appropriate parent organization or state or national organization for membership in a qualified organization including auxiliaries pursuant to its bylaws, articles of incorporation, charter, rules or similar written instrument and who has been a member in good standing for at least thirty days but less than two years.
21. 48. "Occasion" means a gathering at which bingo games are played.
49. "Patron" or "Player" means a person who is a customer or guest of the establishment in which bingo is OFFERED for play and who may interact with a bingo game.
50. "Patron deposit account" means an account that is assigned to and maintained on behalf of a particular patron for the purpose of depositing and withdrawing cashable monies for the primary purpose of playing bingo and that is funded by that patron.
22. 51. "Person" means a natural person, firm, association, corporation or other legal entity.
52. "Player interface" means any component of a bingo gaming system, including an electronic aid, a technologic aid, a terminal, a player station, a handheld device and a fixed unit, that directly enables player interaction with a bingo game.
23. 53. "Premises" means any room, hall, building, enclosure or outdoor area used for the purpose of playing a game of bingo. Premises shall not be subdivided to provide multiple premises.
54. "Prize schedule" means the set of prizes that are available to players for achieving predesignated patterns in a bingo game.
24. 55. "Proceeds coordinator" means a person who has primary responsibility for the use of bingo game proceeds in accordance with law and for all checks issued from bingo game proceeds and is designated as the proceeds coordinator in the application for a license.
56. "Program storage media" means An electronic data storage component, such as a CD-ROM, EPROM, hard disk or flash memory, on which software is stored and from which software is read.
57. "Progressive prize" means A prize that increases by a selectable or predefined amount based on play of a Bingo game.
25. 58. "Qualified organization" means a homeowners association or any bona fide charitable, fraternal, religious, social, as described in section 43‑1201, subsection A, paragraph 7, veterans' or volunteer fire fighters organization, or nonprofit ambulance service as defined in section 41‑1831 or any chartered branch or lodge or chapter of such national or state organization which that operates without profit to its members and which that has been in existence continuously for a period of two years in Arizona immediately before applying for a license under this article, and may include not more than one identified auxiliary of any such organization.
59. "Random number generator" means A software module, a hardware component or a combination of a software module and a hardware component that is designed to produce outputs that are effectively random.
60. "Reflexive software" means Any software that has the ability to manipulate or replace a randomly generated outcome for the purpose of changing the results of a Bingo game.
26. 61. "Religious organization" means any organization, church, body of communicants or group, not for pecuniary profit, gathered in common membership for regular worship and religious observances and which organization has been so gathered or united for two years prior to before making application for a license under this article. Religious organization shall also include not more than one auxiliary of the organization.
27. 62. "Reporting period" means the applicable reporting period prescribed in section 5‑413.
28. 63. "Revocation" means the disciplinary termination of bingo license activity.
64. "rewritable storage media" means Program or data storage components that can be removed from gaming equipment and be written to or rewritten by the gaming equipment or by other equipment designed for that purpose.
65. "server" means a computer that controls one or more applications or environments within a bingo gaming system.
29. 66. "Supervisor" means a person who is primarily responsible for the conduct of bingo games on each occasion including the supervision of all activities and the making of any report required by the licensing authority for the occasion.
30. 67. "Suspension" means the disciplinary termination of bingo license activity for a period of less than five years.
68. "Technological aid" means an electronic device that aids in the play of bingo.
69. "Test, diagnostic or demonstration mode" means A mode on a component that allows various tests to be performed on Bingo hardware and software.
70. "Testing laboratory" means A testing organization recognized by the department of gaming.
71. "Unenroll" means The process by which a technological aid disconnects an enrolled system component resulting in the disallowance of any live gaming activity on that component.
31. 72. "Veterans' organization" means any congressionally chartered organization within this state, or any branch, lodge or chapter of a national or state organization within this state, not for pecuniary profit, the membership of which consists of individuals who were members of the armed services or forces of the United States, which that has been in existence for two years prior to before making application for a license under this article. Veterans' organization shall also include not more than one auxiliary of such organization.
32. 73. "Voluntary Volunteer fire fighters organization" means any organization within this state, not for pecuniary profit, established pursuant to title 48, chapter 5 which has been in existence continuously for two years immediately before applying for a license under this article.
Sec. 2. Section 5-403, Arizona Revised Statutes, is amended to read:
5-403. Qualification for license; renewal; transfer
A. A person shall not conduct or assist in conducting activity for which a license is required under this article unless the person conducting the activity first obtains the specific class of license for the activity.
B. A license prescribed by this article shall not be issued to an applicant qualified under this article until the licensing authority receives an original or certified copy of the application from the local governing body and the nonrefundable license fee prescribed in section 5‑414 is paid to the licensing authority. The license expires one year from after the date it is issued and may be renewed upon on the filing with the licensing authority of an application for renewal of the license provided by the licensing authority and the payment of the license fee prescribed in section 5‑414. A thirty day thirty‑day grace period shall be allowed during which the license may be renewed if a late filing penalty equal to the license fee is submitted with the regular license fee. A licensee filing late shall not conduct occasions of bingo until the licensing authority has renewed the license for the next one year one‑year period. If the licensee fails to apply to the licensing authority within the thirty day thirty-day grace period the licensee must reapply for a new license under section 5‑404.
C. If a license is revoked the licensing authority shall not issue a new license to the licensee for a period of five years from after the effective date of the revocation.
D. A license issued pursuant to this article is not transferable to another person.
E. The licensing authority shall not issue more than one license to an applicant or licensee per location.
Sec. 3. Section 5-404, Arizona Revised Statutes, is amended to read:
5-404. Application for license
A. Each applicant for an initial license to be issued pursuant to the provisions of this section shall submit to the local governing body the local governing body fee and the license fee prescribed in section 5‑414 together with a written application in the form prescribed by the licensing authority, duly executed and verified, and in which shall be stated:
1. The name, telephone number and address of the applicant.
2. Sufficient facts to enable the licensing authority to determine whether or not the applicant is qualified for the specific class of license for which the applicant is applying.
3. If the applicant is a qualified organization the names and addresses of its officers.
4. The place where and day and time when such games of bingo are to be held, operated and conducted by the applicant, under the license applied for.
5. The items of expense intended to be incurred or paid in connection with the holding, operating and conducting of such games of bingo and the names and addresses of the persons to whom, and the purposes for which, they are to be paid.
6. For An applicant for a class A, B or C license, except with respect to class A licensees that are holders of a bar license, a beer and wine bar license or a club license, the specific projected use of the net proceeds.
7. Such other information as shall be deemed advisable by the licensing authority.
B. The applicant shall designate in the application:
1. A minimum of one or two persons person who will serve as manager.
2. For An applicant for a class A, B or C license, except with respect to class A licensees that are holders of a bar license, a beer and wine bar license or a club license, one person who will serve as proceeds coordinator.
3. For An applicant for a class A, B or C license, at least one person who will serve as supervisor.
4. For An applicant for a class A, B or C license, except with respect to class A licensees that are holders of a bar license, a beer and wine bar license or a club license, at least one person who will serve as assistant.
C. A person designated as a manager, proceeds coordinator or supervisor on a license shall not serve in any of these positions under any other license.
D. The applicant shall attach affidavits to the application which that are executed by each manager and state that the manager:
1. Will conduct ensure that all bingo games are conducted in compliance with the license, this article and the rules of the licensing authority.
2. Is of good moral character.
3. Has never been convicted of a misdemeanor involving moral turpitude or a felony.
E. The applicant for a class A, B or C license, except with respect to class A licensees that are holders of a bar license, a beer and wine bar license or a club license, shall attach an affidavit to the application which that is executed by the proceeds coordinator and states that the proceeds coordinator:
1. Will use the net proceeds in compliance with the terms of the license, this article and the rules of the licensing authority.
2. Is of good moral character.
3. Has never been convicted of a misdemeanor involving moral turpitude or a felony.
F. A person may serve as supervisor for more than one occasion for the same licensee. The supervisor shall be continuously present on the premises during the bingo games and until all associated activities have been completed. The applicant shall attach affidavits to the application which that are executed by each supervisor and state that the supervisor:
1. Will comply with the terms of the license, this article and the rules of the licensing authority in supervising each occasion.
2. Is of good moral character.
3. Has never been convicted of a misdemeanor involving moral turpitude or a felony.
G. Except in an application for a class A license, the applicant shall attach affidavits to the application which that are executed by each assistant and state that the assistant:
1. Will comply with the terms of the license, this article and the rules of the licensing authority in assisting in the conduct of all bingo games.
2. Is of good moral character.
3. Has never been convicted of a misdemeanor involving moral turpitude or a felony.
H. If any premises are to be leased or rented in connection with holding, operating or conducting any game of bingo pursuant to this article, an affidavit by the lessor shall accompany the application stating the lessor's name and address, the amount of rent, stated in a specific dollar amount and not relating to any or as a percentage or portion of gross or net revenue, which will be paid for such premises and that the lessor is, or its officers and directors are, of good moral character and have not been convicted of any misdemeanor involving moral turpitude or a felony.
I. The local governing body shall upon on receipt of the application immediately set a hearing on the application to be held within forty‑five days.
J. Following the receipt of the application and the hearing the local governing body shall recommend approval or disapproval of the application and forward the original or a certified copy of the application endorsed with its approval or disapproval to the licensing authority. If the application is disapproved by the local governing body the endorsement shall contain the specific reasons for disapproval.
Sec. 4. Section 5-405, Arizona Revised Statutes, is amended to read:
5-405. Form of license; display
A. Each license shall contain a statement of the name and address of the licensee. , Each manager's license shall contain the name of the manager and the place where bingo games are to be held.
B. Each license issued for the conduct of any game or games of bingo shall be conspicuously displayed at the place where any game is to be conducted at all times during any game.
Sec. 5. Section 5-406, Arizona Revised Statutes, is amended to read:
5-406. Persons permitted to conduct games; premises; equipment; expenses; compensation
A. A person shall not hold, operate or conduct any game of bingo under any license issued pursuant to this article unless the person has submitted affidavits as required in section 5‑404 and has received prior written approval from the licensing authority. Persons seeking to replace a manager, proceeds coordinator, supervisor or assistant or to serve as an additional manager, supervisor or assistant shall submit the appropriate affidavit to the licensing authority as required in section 5‑404.
B. Except as provided in section 5‑413, only technological aid providers, licensees and members, and new members, licensed employees and licensed designees of a licensee or an applicant may participate or, if an employee or designee of a licensee is unlicensed, apply to participate in conducting any bingo game held by the licensee.
C. Except for a class A licensee that is a holder of a bar license, a beer and wine bar license or a club license, a person shall not hold, operate, conduct or assist in conducting any game or games of bingo under any license if the person or the person's spouse has a proprietary, equitable or credit interest, or is an officer, director, agent or employee of an individual or company that has a proprietary, equitable or credit interest, in the licensee.
D. Bookkeepers or accountants need not be members of the organization.
E. An item of expense shall not be incurred or paid in connection with holding, operating or conducting any game of bingo held, operated or conducted pursuant to any license issued under this article, except bona fide expenses in a reasonable amount for purposes described in section 5‑407, subsection G. A game of bingo shall not be conducted with any equipment except equipment owned solely by the licensee, or the licensed designee of the licensee or jointly by not more than six licensees. No portion of the ownership of such equipment may be held by any person or organization not licensed pursuant to this chapter. A game of bingo shall not be conducted with rented equipment.
F. An applicant or a licensee shall not enter into any purchase agreement other than a bona fide purchase agreement. Except with respect to class A licensees that are holders of a bar license, a beer and wine bar license or a club license, the seller may repurchase equipment only upon on default of the buyer and then only at a price equal to or greater than ninety percent of any money paid for equipment from buyer to seller. The seller may repurchase a building only upon on default of the buyer at a fair market value per licensee.
G. A licensee shall not conduct or operate more than five seven occasions of bingo during any calendar week. No more than twelve twenty hours of bingo shall be conducted in any building or on any premises during any calendar day.
H. The entire net proceeds of any game shall be devoted to a lawful use or uses. In addition to other unlawful uses, the following are not considered lawful uses under this subsection:
1. Compensation and expenses of directors, officers and management personnel, except with respect to class A licensees that are holders of a bar license, a beer and wine bar license or a club license.
2. Fees or commissions of consultants.
3. Compensation paid for legal services incurred by a licensee unsuccessfully defending against charges of violations of this article.
4. Donations to other than national, state or local nonprofit parent organizations in excess of five percent of the net proceeds except with the permission of the licensing authority.
5. Donations or any payment from the lessor to the lessee.
I. The premises where any game of bingo is being held, operated or conducted, where it is intended that any game of bingo shall be held, operated or conducted or where it is intended that any equipment shall be used shall at all times be open to inspection by the licensing authority, its agents and employees and peace officers of any political subdivision of the state.
J. When any merchandise prize is awarded in a game of bingo, its value shall be its current retail price. A merchandise prize shall not be redeemable or convertible into cash directly or indirectly.
K. Equipment, prizes and supplies for games of bingo shall not be purchased or sold at prices in excess of one hundred fifteen percent of the average price paid by other licensees as reported in the reports submitted to the licensing authority during the prior six month sixth‑month period by licensees having the same class of license. A licensee shall not enter into any contract or purchase agreement whereby it agrees to limit its source of supplies.
L. An alcoholic beverage shall not be offered given away free to a player or given as a prize in any such game.
M. Except with respect to class A licensees that are holders of a bar license, a beer and wine bar license or a club license, the net profits derived from the holding of games of bingo must be devoted within one year from after the date such profits were earned to the lawful purposes of the organization permitted to conduct such games. Any organization desiring to hold the net profits of games of bingo for a period longer than one year from after the date such profits were earned must apply to the licensing authority for special permission and upon on good cause shown the authority may grant the request.
N. Any licensee which that does not report during any one‑year period the amount of its net profits, if any, shall be required to show cause before the licensing authority why its license to conduct games of bingo should not be revoked.
O. The licensing authority shall require a licensee which that does not conduct bingo games during any one year period to show cause why its license to conduct games of bingo should not be cancelled.
P. Except as otherwise provided by this section, a prize greater in amount or value than one thousand dollars shall not be offered or given in any single game of bingo conducted under any such license, and total prizes shall not exceed an amount or value greater than three thousand dollars for any occasion. Door prizes, discounts or other inducements with a value exceeding two hundred fifty dollars per occasion shall not be offered or given away.
Q. Except for a class A licensee, on application to the licensing authority by the licensee the licensing authority may authorize one special bonus game to be played at weekly consecutive occasions with a quarterly prize limit of twelve thousand dollars. A weekly consecutive occasion is an occasion played on the same day of each week during the quarter. The special bonus game may be played at each weekly consecutive occasion subject to the rules adopted by the licensing authority. The special bonus game is not subject to the prize limits prescribed by subsection P of this section.
R. The equipment used in playing bingo and the method of play shall be such that each card participant in a bingo game shall have an equal opportunity to be a winner. The objects or balls to be drawn shall be essentially the same as to size, shape, weight, balance and all other characteristics that may influence their selection. All objects or balls shall be present in the receptacle before each game is begun. If a random number generator is used for number selection, the random number generator must have been certified to give unbiased results in the selection of bingo numbers by a recognized testing laboratory. All numbers announced shall be plainly and clearly audible or visible to all each of the players present. Where If more than one room is used for any one game, the and if a receptacle is used, the person calling the numbers as they are drawn and the person removing the objects or balls from the receptacle must be present in the room where the greatest number of players is present and all numbers announced shall be plainly audible or visible to the players in that room and also audible or visible to the players in the other room or rooms. If physical cards or sheets are used, the cards or sheets of the players shall be part of a deck, group or series of cards, no two of which shall be alike, and which deck, group or series shall not be so prepared or arranged as to prefer any card. A licensee may provide braille cards for legally blind persons or allow legally blind persons to supply their own braille cards. A legally blind person supplying the person's own cards shall pay a fee to the licensee equal to that which would be charged if the legally blind person obtained the cards from the licensee. The bingo game activity shall be conducted and recorded in a manner as prescribed by the licensing authority to verify the gross receipts from each occasion.
S. If a receptacle is used, the receptacle, the person calling the numbers as they are drawn and the person removing the objects or balls from the receptacle must be visible to all the players at all times except where more than one room is used for any one game and subsection R of this section applies.
T. The particular arrangement of numbers required to be covered in order to win the game and the amount of the prize shall be clearly and audibly or visibly described and announced to the players immediately before each game is begun.
U. With respect to manually operated bingo games conducted by class A, B or C licensees, any players shall be entitled to call for a verification of all numbers drawn at the time a winner is determined, and for a verification of the objects or balls remaining in the receptacle and not yet drawn. The verification shall be made in the immediate presence of the supervisor and in full view of any player requesting the verification.
V. A person who is not physically present on the premises where the game is actually conducted shall not be allowed to participate as a player in the game. This subsection does not require a participant to be physically present on the premises that houses a server if a server is used in CONJUNCTION with the conduct of a bingo game.
W. A person who holds, operates or conducts, or assists in holding, operating or conducting, a game of bingo shall not play at any occasion at which such person works unless the game of bingo is conducted pursuant to a class A license.
X. A person shall not conduct a lottery or raffle within a twelve hour twelve-hour period before or after a bingo occasion or game on any premises used for bingo games or within one thousand feet of the bingo game. This subsection does not affect any legally conducted activity related to the state lottery.
Sec. 6. Section 5-407, Arizona Revised Statutes, is amended to read:
5-407. Statement of receipts; expenses; penalty
A. On or before the twentieth day after the end of every reporting period designated for the class of the license each licensee shall file with the licensing authority upon on forms prescribed by the licensing authority a financial report which that is signed and sworn to by the proceeds coordinator showing the amount of the gross receipts derived during the reporting period from games of bingo, the expenses paid, a brief description of the classification of such expenses, the ratio of net proceeds to the adjusted gross receipts received by the licensee during the reporting period, the name and address of each person to whom has been paid three hundred dollars or more and the purpose of such expenditure, the net proceeds derived from each such game of bingo and the uses to which such net proceeds have been or are to be applied. Each licensee shall maintain and keep such books and records as may be necessary to substantiate the particulars of each such report.
B. Except for class A licensees, if the net proceeds derived from the games of bingo for any six consecutive months do not amount to at least fifty per cent percent of adjusted gross receipts for those months in total, it shall be presumed that the expenses incurred for goods, wares, merchandise and services rendered are not bona fide and reasonable, and the operation of the game is deemed to be against public policy. If the net proceeds of the games operated by a licensee are less than fifty per cent percent of the adjusted gross receipts in any six consecutive months, the license may be revoked.
C. Except for class A licensees that are holders of a bar license, a beer and wine bar license or a club license, the failure to file reports within forty‑five days after their due date, or if filing reports that are not fully, accurately and truthfully completed, may be the basis of the revocation of the license. For class A licensees that are holders of a bar license, a beer and wine bar license or a club license, the failure to file reports within fifteen days after their due date, or filing reports that are not fully, accurately and truthfully completed, may be the basis of the suspension or revocation of the license. If the licensee fails to make and file a return on or before the due date, unless the failure is due to reasonable cause, a penalty equal to five per cent percent of the amount found to be due or remaining due under subsection H of this section shall be added to that amount for each month or fraction of a month between the due date of the return and the date on which filed, plus interest at a rate determined pursuant to section 42‑1123. The total penalty shall not exceed twenty‑five per cent percent of the amount found to be remaining due. The penalty is due and payable on notice and demand from the licensing authority. If an action has been filed by the licensing authority for revocation of a license, the court shall award reasonable attorney fees to the licensing authority as a part of the proceedings if the licensing authority prevails in the proceedings.
D. Except for a class A licensee, all monies collected or received from the sale of admission, extra regular cards, special game cards, sale of supplies and all other receipts from the games of bingo shall be deposited in a special account of the licensee which and shall contain only such money. Except for a class A licensee, all expenses for bingo games, except cash prizes in the amount of less than one hundred fifty dollars, shall be withdrawn from the licensee's special account by consecutively numbered checks duly signed by a specified officer or officers of the licensee or the supervisor and payable to a specific person or organization. Class A licensees that are not holders of a bar license, a beer and wine bar license or a club license shall pay all bingo game prizes, except cash prizes in an amount less than one hundred fifty dollars, by check duly signed by a specified person or persons or the supervisor. Class A licensees that are holders of a bar license, a beer and wine bar license or a club license shall immediately deposit all bingo prizes into the patron's individual gaming account. A check shall not be drawn to "cash" or a fictitious payee. A check drawn on a licensee's special account shall not be payable to the licensee. Checks drawn against the net proceeds in the special account shall be drawn only for lawful uses and purposes. The licensee may establish interest bearing accounts which shall that contain only monies transferred from the licensee's special account, but all monies, interest and other proceeds shall be redeposited to the special account before being used for lawful uses and purposes.
E. A licensee other than a class A licensee that is a holder of a bar license, a beer and wine bar license or a club license shall maintain a permanent record containing the signature of each player who receives a cash prize from such licensee and the amount of the cash prize awarded to such player.
F. The net profits after they have been given over to another organization shall not be used by the donee organization to pay any person for services rendered or materials purchased in connection with the conducting of bingo by the donor organization.
G. Expenses shall not be incurred or paid in connection with holding, operating or conducting any game of bingo pursuant to any license, except bona fide expenses of a reasonable amount. Expenses may be incurred only for the following purposes:
1. The purchase of goods, wares and merchandise furnished.
2. Payment for services rendered.
3. Rent.
4. Accountants' fees.
5. License fees.
6. Utility expenses.
7. Security guards.
8. Compensation not to exceed the current federal minimum wage plus twenty per cent percent. The restriction prescribed in this paragraph does not apply to class A licensees that are holders of a bar license, a beer and wine bar license or a club license.
9. Mortgage payments, including when a nonprofit charitable organization licensee is using the building or premises for both bingo and for the licensee's bona fide charity.
10. Advertising.
11. Business expenses.
In For the purposes of this subsection:
(a) "Goods, wares and merchandise" means prizes, equipment and articles of a minor nature such as pencils, crayons, tickets, envelopes, paper clips and coupons necessary for the conduct of games of bingo.
(b) "Services rendered" means repair to equipment, reasonable compensation to bookkeepers or accountants, not more than two in the aggregate, for services in preparing financial reports and a reasonable amount for janitorial service and security guards. Services rendered do not include and no item of expense may be incurred or paid for service of any nature whatever rendered by a member or new member, including, without limitation except as provided by paragraph 8 of this subsection, equipment repair, bookkeeping, accounting, janitorial service, security guard service or operating, conducting or managing a bingo game or providing any professional or consultation service related to bingo.
H. In lieu of the taxes collected under title 42, chapter 5, article 1 there shall be paid to the state licensing authority a tax in the amount prescribed in section 5‑414. The taxes collected pursuant to this section shall be deposited in the state general fund. All administrative receipts, including license fees, penalties and interest, collected by the state pursuant to this article shall be deposited in the state general fund.
I. Each licensee, at the time each financial report is submitted to the licensing authority, shall pay to the order of the licensing authority the amount of tax provided in subsection H of this section.
Sec. 7. Section 5-413, Arizona Revised Statutes, is amended to read:
5-413. License classification; requirements
A. A class A license may be issued to a person for the conduct of bingo games for which the gross receipts do not exceed fifteen thousand six hundred dollars per year. A class A license shall not be issued to a person who holds a license issued pursuant to title 4 except a club license issued pursuant to section 4‑205. For a class A license:
1. Any person may apply as prescribed in this article.
2. The manager, proceeds coordinator, supervisor and assistant are not required to be members or new members.
3. The reporting period is one year coinciding with the term of the license.
B. A class B license may be issued to a qualified organization for the conduct of bingo games for which the gross receipts do not exceed three hundred thousand dollars per year. For a class B license:
1. Only a qualified organization may apply.
2. The manager and supervisor shall be members of the licensee.
3. The proceeds coordinator shall be an officer or director and a member of the licensee and is responsible for completion of the required financial report.
4. An assistant shall be a member or new member of the licensee.
5. There are four reporting periods coinciding with the quarters of the term of the license.
C. A class C license may be issued to a qualified organization for the conduct of bingo games for which the gross receipts exceed three hundred thousand dollars per year. For a class C license:
1. Only a qualified organization may apply.
2. The manager and supervisor shall be members of the licensee.
3. The proceeds coordinator shall be an officer or director and a member of the licensee and is responsible for completion of the required financial report.
4. An assistant shall be a member or new member of the licensee.
5. There are twelve reporting periods coinciding with each month of the term of the license.
D. A class A license may be issued to the holder of a bar license, a beer and wine bar license or a club license. For a class A license issued to a holder of a bar license, a beer and wine bar license or a club license:
1. All managers and the supervisor, if any, shall either be the licensee or be employed by the licensee.
2. There are twelve reporting periods coinciding with each month of the term of the license.
3. The income restrictions prescribed in subsection A of this section do not apply to class A licensees that hold a bar license, a beer and wine bar license or a club license.
Sec. 8. Section 5-414, Arizona Revised Statutes, is amended to read:
5-414. Fees; tax
A. The following fees and tax shall be assessed as prescribed in this article for the different license classes:
Local Governing
License Class Body Fee License Fee Bingo Tax
A $ 5.00 $ 10.00 2.5% of adjusted gross receipts
B 25.00 50.00 1.5% of gross receipts
C 50.00 200.00 2.0% of gross receipts
B. Notwithstanding any other law, for Class A licenses issued to holders of a bar license, a beer and wine bar license or a club license:
1. The license fee shall be paid to the city or town where the licensee conducts Bingo, except that if the licensee conducts bingo outside the boundaries of any city or town, the license fee shall be paid to the county where the licensee conducts bingo.
2. The bingo tax shall be transmitted to the state treasurer for deposit in the state general fund. The legislature shall annually appropriate the monies in the state general fund that are collected from the bingo tax as follows:
(a) Seventy‑five percent of these monies shall be appropriated to provide funding for full‑day kindergarten instruction in the public schools of this state.
(b) Twenty‑five percent of these monies shall be appropriated to the department of public safety to be used for any purpose specified by the director of the department of public safety.
Sec. 9. Title 5, chapter 4, article 1, Arizona Revised Statutes, is amended by adding sections 5-416, 5‑417, 5‑418, 5‑419, 5‑420, 5‑421, 5‑422, 5‑423, 5‑424, 5‑425, 5‑426, 5‑427, 5‑428, 5‑429, 5‑430, 5‑431, 5‑432, 5‑433, 5‑434, 5‑435, 5‑436, 5‑437, 5‑438, 5‑439, 5‑440, 5‑441, 5‑442, 5‑443, 5‑444 and 5‑445, to read:
5-416. Bingo conducted by class A licensees that hold bar licenses, beer and wine bar licenses or club licenses; implementation
A. The laws prescribed in this chapter for bingo conducted by class A licensees that are holders of a bar license, a beer and wine bar license or a club license are minimum standards and the department of gaming may adopt rules to establish and implement additional standards applicable to bingo conducted by class A licensees that are holders of a bar license, a beer and wine bar license or a club license if those rules do not conflict with the laws prescribed in this chapter.
B. The laws prescribed in this chapter for bingo conducted by class A licensees that are holders of a bar license, a beer and wine bar license or a club license may not be interpreted to limit the use of technology or to preclude the use of any technology that is not specifically mentioned in this chapter.
C. All gaming equipment and software used in bingo conducted by class A licensees that are holders of a bar license, a beer and wine bar license or a club license shall comply with the laws prescribed in this chapter.
5-417. Bingo conducted by class A licensees that hold bar licenses, beer and wine bar licenses or club licenses; rules of general application
A. A technological aid used in bingo conducted by class A licensees that are holders of a bar license, a beer and wine bar license or a club license may not cheat or mislead patrons. All prizes advertised must be available to win during the game. A testing laboratory must calculate or verify, or both, the mathematical expectations of game play, where applicable, in accordance with the manufacturer's stated submission. The results must be included in the testing laboratory's report to the department of gaming. At the request of the director of the department of gaming, the manufacturer must also submit the mathematical expectations of the game play to the department of gaming.
B. All gaming equipment and software used with Bingo gaming systems of class A licensees that are holders of a bar license, a beer and wine bar license or a club license must be identical in all respects to a prototype that was reviewed and tested by a testing laboratory and that was approved for use by the department of gaming.
C. All gaming equipment and software used with Bingo gaming systems of class A licensees that are holders of a bar license, a beer and wine bar license or a club license must perform according to the manufacturer's design and operating specifications.
5-418. Bingo conducted by class A licensees that hold bar licenses, beer and wine bar licenses or club licenses; compliance
A. The Department of gaming shall submit technological aid software that affects the play of the Bingo game, together with the signature verification required by section 5-429, to a testing laboratory recognized pursuant to this section within one hundred twenty days after the effective date of this section.
B. The testing laboratory shall test the submissions required by subsection A of this section to the standards established by this chapter and to any additional technical standards adopted by the Department of gaming.
C. The testing laboratory shall provide the Department of gaming with a formal written report setting forth and certifying the findings and conclusions of the test required by subsection B of this section.
D. The Department of gaming may make a finding, in the form of a certificate provided to the supplier or manufacturer of the Bingo gaming system, that the technological aid qualifies for grandfather status under this section. The Department may make this finding only on receipt of a testing laboratory's report that the technological aid complies with this chapter and any other technical standards adopted by the Department. If the Department does not issue the certificate, or if the testing laboratory finds that the technological aid is not in compliance with this chapter or any other technical standards adopted by the Department, then the gaming system may not be used for bingo conducted by class A licensees that are holders of a bar license, a beer and wine bar license or a club license.
E. The Department of gaming shall retain a copy of any testing laboratory's report for the duration of the time that the technological aid that is the subject of the report remains available to the public for play.
F. The department of gaming may approve Any hardware or software modification to a bingo gaming system or to the software of a technological aid that the Department determines will maintain or advance the Bingo gaming system's compliance with this chapter and any other technical standards adopted by the Department if the department receives a new testing laboratory report that the modifications are compliant with this chapter and any other standards adopted by the Department and if the Department determines that the modifications will not detract from, compromise or prejudice The proper functioning, security or integrity of the Bingo gaming system. No such modification may be implemented without the approval of the Department. The Department must maintain a record of the modification for the duration of the time that the gaming system or the technological aid that is the subject of the modification remains available to the public for play.
G. The player interface must exhibit information consistent with this chapter and any other information required by the Department of gaming.
5-419. Emergency hardware and software modifications
a. The department of gaming, in its discretion, may allow the modification of previously approved hardware or software to be made available for play without prior laboratory testing or review if the modified hardware or software is either:
1. Necessary to correct a problem affecting the fairness, security or integrity of a game or accounting system or any cashless system.
2. Unrelated to game play, an accounting system or a cashless system.
B. If the department of gaming authorizes modified software or hardware to be made available for play or use without prior testing laboratory review, the department must subsequently require the hardware or software manufacturer to do all of the following:
1. Immediately advise other users of the same hardware or software of the importance and availability of the update.
2. Immediately submit the new or modified hardware or software and any applicable components that are testable by the testing laboratory to a testing laboratory for testing and verification of compliance with this chapter.
3. Immediately provide the department of gaming with a software signature verification tool that meets the requirements prescribed in section 5-429 for any new or modified software.
C. If the department of gaming authorizes a software or hardware modification under this section, it must maintain a record of the modification and a copy of the testing laboratory report for the duration of time that the technological aid that is the subject of the modification remains available to the public for play.
5-420. Testing laboratories
a. A testing laboratory may provide the examining, testing, evaluating and reporting functions required by this chapter if the testing laboratory:
1. demonstrates the testing laboratory's integrity, independence and financial stability to the department of gaming.
2. demonstrates the testing laboratory's technical skill and capability to the department of gaming.
3. is independent from the manufacturer and gaming operator for whom the testing laboratory is providing the examining, testing, evaluating and reporting functions required by this chapter.
B. The department of gaming may accept, in its discretion, a determination of suitability for the testing laboratory made by any other gaming regulatory authority in the United States if, After reviewing the suitability determination and the information provided by the testing laboratory, the department of gaming determines that the testing laboratory is qualified to test and evaluate Bingo gaming systems.
C. The department of gaming shall:
1. Maintain a record of all determinations made pursuant to this section for a minimum of three years.
2. Place the testing laboratory under a continuing obligation to notify the department of any adverse regulatory action in any jurisdiction where the testing laboratory conducts business.
3. Require the testing laboratory to provide notice to the department of gaming of any material changes to the information provided pursuant to this section.
5-421. Minimum technical standards for enrolling and enabling technological aid components
a. Bingo gaming systems conducted under a class A license issued to the holder of a bar license, a beer and wine bar license or a club license must provide a method to:
1. Enroll and unenroll technological aid components.
2. Enable and disable specific technological aid components.
B. Bingo gaming systems conducted under a class A license issued to the holder of a bar license, a beer and wine bar license or a club license must ensure that:
1. only enrolled and enabled technological aid components participate in gaming.
2. the default condition for technological aid components is unenrolled and disabled.
5-422. Minimum technical hardware standards applicable to bingo gaming systems
a. Printed circuit boards that have the potential to affect the outcome or integrity of a bingo game conducted under a class A license issued to the holder of a bar license, a beer and wine bar license or a club license and that are specially manufactured or proprietary must display a unique identifier, such as a part number or a revision number, or both, which must be updated to reflect new revisions or modifications to the circuit board. Switches or jumpers on all circuit boards that have the potential to affect the outcome or integrity of any game, progressive prize, financial instrument, cashless transaction or accounting record must be capable of being sealed.
B. Any technological aid component that is accessible to the public must be constructed so that the component exhibits immunity to human body electrostatic discharges on areas that are exposed to contact. electrostatic discharges of plus or minus fifteen kilovolts for air discharges and plus or minus seven and one‑half kiloVolts for contact discharges may not cause damage to or inhibit the operation or integrity of the Bingo gaming system.
C. Physical enclosures must be of a robust construction designed to resist determined illegal entry. All protuberances and attachments, such as buttons, identification plates and labels, must be sufficiently robust to avoid unauthorized removal.
D. The player interface must exhibit a serial number and date of manufacture and include a method or means to Display information to a player and Allow the player to interact with the Bingo gaming system.
e. A technological aid component that reads account access media must be located within a secure and locked area, cabinet or housing that is of a robust construction designed to resist determined illegal entry and to protect internal components. the account access component Must be constructed so that physical tampering leaves evidence of that tampering and Must provide a method to enable the technological aid to interpret and act on a valid or invalid input or error condition.
F. Any financial instrument storage component managed by technological aid software must be located within a secure and locked area, cabinet or housing that is of a robust construction designed to resist determined illegal entry and to protect internal components.
G. Any technological aid logic component that affects the game outcome must be located within a secure, locked and tamper-evident area or in a locked cabinet or housing that is of a robust construction designed to resist determined illegal entry and to protect internal components. DIP switches or jumpers that can affect the integrity of the Bingo game must be capable of being sealed by the department of gaming.
H. All components of the technological aid that are locked in order to meet the requirements of this chapter must include a sensor or other methods to monitor an open door. A door open sensor and its components or cables must be secure against attempts to disable the sensor or components or interfere with the sensor's or components' normal mode of operation.
5-423. Financial instrument transactions
a. Any technological aid component that handles financial instruments and that is not operated under the direct control of an agent must:
1. Be located within a secure and locked area, cabinet or housing that is of a robust construction designed to resist determined illegal entry and to protect internal components.
2. Be able to detect the entry of valid or invalid financial instruments and to provide a method to enable the technological aid to interpret and act on a valid or invalid input or error condition.
3. Be constructed to permit communication of the accounting information prescribed in this chapter and applicable rules that are adopted by the department of gaming and that govern minimum internal control standards.
b. Before the completion of a valid financial instrument transaction by the Bingo gaming system, no monetary amount related to that instrument may be available for play.
c. The monetary amount related to all valid financial instrument transactions by the technological aid must be recorded as prescribed in this chapter and the applicable rules that are adopted by the department of gaming and that govern minimum internal control standards.
d. The monetary amount related to all valid financial instrument transactions by the technological aid must be recorded as prescribed in this chapter and any rules that are adopted by the department of gaming and that govern minimum internal control standards.
e. This section does not prohibit the account access component, financial instrument storage component, financial instrument acceptor or financial instrument dispenser from being included within the same component or being separated into individual components.
5-424. Minimum technical software standards applicable to bingo gaming systems
a. If not otherwise provided to the player, the player interface of a bingo gaming system must display all of the following information:
1. The purchase or wager amount.
2. The Game results.
3. Any player credit balance.
B. Between plays of any game and until the start of the next play, or until the player selects a new game option such as a purchase or wager amount or card selection, whichever is earlier, if not otherwise provided to the player, the player interface must display all of the following:
1. The total purchase or wager amount, all prizes and the total credits won for the last game played.
2. The final results for the last game played.
3. Any default purchase or wager amount for the next play.
5-425. Game rules, initiation and play
a. Each game played on the technological aid must follow and not deviate from a constant set of rules for each game that is provided to players pursuant to this chapter. There may not be any undisclosed changes to those rules.
b. The technological aid may not alter or allow to be altered the card permutations used for play of a Bingo game unless specifically chosen by the player before the player commits to participate in the game. duplicate cards may not be sold for any common draw.
c. game play may not commence, and a financial instrument or credit may not be accepted on the affected player interface, in the presence of any fault condition that affects the outcome of the game or while in test, audit or lock-up mode.
d. Each player must initiate that player's participation in the play of a game.
5-426. Audit mode
a. If an audit mode is provided, the technological aid must, for those components actively involved in the audit:
1. Provide all accounting functions required by this chapter, by any applicable rules that are adopted by the department of gaming and that govern minimum internal control standards and by any internal controls adopted by the department.
2. Display the player interface identification.
3. Display the software version or the game identification.
b. Audit mode must be accessible by a secure method such as an agent PIN, key or other auditable access control.
c. Accounting function data must be accessible by an agent at any time except during play.
d. The technological aid must disable financial instrument acceptance on the affected player interface while in audit mode except during financial instrument acceptance testing.
5-427. Last game recall
The last game recall function must:
1. Be retrievable at all times, other than when the recall component is involved in the play of a game, on the operation of an external key-switch or the entry of an audit card or by using a similar method.
2. Display the results of recalled games as originally displayed or in text representation to enable the department of gaming or the operator to clearly identify the sequences and results that occurred.
3. Allow, on return to normal game play mode, the restoration of any affected display to the positions, forms and values displayed before access to the game recall information.
4. Provide and display the following information for the current game and previous four games played:
(a) The Play start time, end time and end date.
(b) The total number of credits at the start of play.
(c) The purchase or wager amount.
(d) The total number of credits at the end of play.
(e) The total number of credits won as a result of the game recalled and the value in dollars and cents for progressive prizes, if different.
5. display all of the following:
(a) The card or cards used by the player.
(b) The identifier of the bingo game played.
(c) The numbers or other designations drawn in the order that the numbers or other designations were drawn.
(d) The numbers or other designations and prize patterns covered on each card.
(e) All prizes won by the player, including winning patterns, if any.
(f) The unique identifier of the card on which prizes were won.
5-428. Credit transfer recall
Notwithstanding any other law, a technological aid must have the capacity to Display a complete transaction history for the last five cashless transactions made and the last five cashless transactions accepted.
5-429. Software signature verification
The manufacturer or developer of a technological aid must provide to the testing laboratory and to the department of gaming an industry‑standard methodology that is acceptable to the department for verifying the technological aid game software.
5-430. Test, diagnostic or demonstration modes
If test, diagnostic or demonstration modes are provided, the technological aid must, for those components actively involved in the test, diagnostic or demonstration mode:
1. Clearly indicate when that component is in the test, diagnostic or demonstration mode.
2. Not alter financial data on that component other than temporary data.
3. Only be available after entering a specific mode.
4. Disable credit acceptance and payment unless credit acceptance or payment is being tested.
5. Terminate all mode-specific functions when that mode is exited.
5-431. Multiple games
If multiple games are offered for player selection at the player interface, the player interface must:
1. Provide a display of available games.
2. Provide the means of selecting between games.
3. Display the full amount of the Patron's patron Deposit Account.
4. Identify the game selected or being played.
5. Not force the play of a game after that game is selected.
5-432. Program interruption and resumption
The technological aid software must be designed so that on resumption following any interruption, the system:
1. Is able to return to a known state.
2. Must check for any fault condition.
3. Must verify the integrity of data stored in critical memory.
4. Must return the purchase or wager amount to the player in accordance with the rules of the game.
5. Must detect any change or corruption in the technological aid software.
5-433. Technological aids; progressive components
A. Any Modification of progressive parameters in Bingo gaming systems with progressive controllers and with components that act as progressive controllers must be conducted in a secure manner that is approved by the department of gaming. These parameters may include:
1. Increment value.
2. Secondary pool increments.
3. Reset amounts.
4. Maximum values.
5. The Identity of participating player interfaces.
b. The technological aid component or other progressive controller must provide a means of creating a progressive balancing report for each progressive link that the component or controller controls. At a minimum, that report must balance the changes of the progressive amount, including progressive prizes won, for all participating player interfaces against current progressive amounts and progressive prizes. the report must also account for, and not be made inaccurate by, unusual events such as:
1. The clearance of critical memory from the technological aid.
2. The Modification, alteration or deletion of progressive prizes.
3. Off-line equipment.
4. Multiple site progressive prizes.
5-434. Critical memory
A. Critical memory may be located anywhere within the Bingo gaming system.
b. Critical memory must be maintained using a methodology that enables errors to be identified and acted on. All accounting and recall functions must be verified as necessary to ensure the ongoing integrity of those functions.
c. The validity of affected data stored in critical memory must be checked after each of the following events:
1. Each restart.
2. Each door closure that is monitored by a sensor.
3. Each reconfiguration, download or change of prize schedule or change in denomination that requires operator intervention or action.
5-435. Secured access
Bingo gaming systems that use a log-on or other means of secured access must include a user account lockout after a predetermined number of consecutive failed attempts to access the Bingo gaming system.
5-436. Minimum technical standards for technological aid accounting functions
a. The following minimum accounting data must be maintained by the Bingo gaming system:
1. The total value of all financial instruments and cashless transactions accepted by the Bingo gaming system. Each type of financial instrument accepted by the technological aid must be tracked independently as required by rules adopted by the department of gaming.
2. The total value of all financial instruments and cashless transactions paid by the Bingo gaming system and the total value of attendant pay. Each type of financial instrument paid by the technological aid must be tracked independently for each financial instrument dispenser and as required by rules adopted by the department of gaming.
b. If the technological aid electronically maintains accounting data:
1. Accounting data must be stored with at least eight decimal digits.
2. Credit balances must have sufficient digits to accommodate the design of the game.
3. Accounting data displayed to the player may be incremented or decremented using visual effects, except that the internal storage of this data must be immediately updated in full.
4. Accounting data must be updated on the occurrence of the relevant accounting event.
5. Modifications to accounting data must be recorded, including the identity of the person or persons who make the modifications, and be reportable by the Bingo gaming system.
C. Accounting data that rolls over to zero may not corrupt data.
D. Any credit balance maintained at the player interface must be prominently displayed at all times, except that display is not required for the following:
1. When the technological aid is In audit, configuration, recall or test mode.
2. during temporary, entertaining displays of game results.
E. Progressive prizes may be added to the player's credit balance if either of the following occur:
1. The player credit balance is maintained in dollars and cents.
2. The progressive accounting data is incremented in the number of credits.
3. The prize in dollars and cents is converted to player credits or transferred to the player's credit balance in a manner that does not mislead the player or cause any accounting imbalances.
F. If the player credit balance displays in credits, but the actual balance includes fractional credits, the technological aid must display the fractional credit when the player credit balance drops below one credit.
5-437. Minimum standards for critical events
a. The following are fault events that must be recorded by the Bingo gaming system:
1. Component fault. This fault event shall be Reported when a fault on a component is detected. If possible, an event message should indicate the nature of the COMPONENT fault.
2. Financial storage component full. This fault event shall be Reported when a financial instrument acceptor or dispenser includes storage and the storage becomes full. An event message must indicate which financial storage component is full.
3. Financial output component empty. This fault event shall be Reported when a financial instrument dispenser is empty. The event message must indicate which financial output component is affected and whether the component is empty.
4. Financial component fault. This fault event shall be Reported when an occurrence on a financial component results in a known fault state.
5. Critical memory error. When the data on a technological aid component can no longer be considered reliable, any game play on the affected component must cease immediately and, if possible, an appropriate message must be displayed.
6. Progressive communication fault. This fault event occurs when communication with a progressive controller component is in a known fault state.
7. Program storage medium fault. This fault event occurs when The software has failed an internal security check or the storage medium has some fault. When this fault event occurs, Any game play on the affected component must cease immediately and, if possible, an appropriate message must be displayed.
B. After clearing any fault event listed in subsection A of this section, the technological aid must do all of the following:
1. Record that the fault condition has been cleared.
2. Ensure the integrity of all related accounting data.
3. In the case of a malfunction, return a player's purchase or wager according to the rules of the game.
C. In addition to the requirements prescribed in subsection A of this section, the technological aid must perform all of the following for any component affected by any door open event that is detected by a sensor:
1. Indicate the state of a door change from closed to open or from open to closed.
2. Disable game play on the affected player interface.
3. Disable player inputs on the affected player interface, unless test mode is entered.
D. for any component affected by any door open event that is detected by a sensor, The technological aid may return the component to a ready-to-play state when all doors that are monitored by sensors are closed.
E. The following are nonfault events that are to be acted on as described in this subsection, if applicable:
1. Player interface off during play. This nonfault event Indicates that power has been lost during game play. This condition must be reported by the affected component or components.
2. Player interface power on. This nonfault event Indicates that the player interface has been turned on. This condition must be reported by the affected component or components.
3. The removal of a Financial instrument storage component container or stacker, or both. This nonfault event Indicates that a financial instrument storage container or stacker has been removed. The event message must indicate which storage container or stacker was removed.
5-438. Minimum technical standards for financial instrument and credit handling
a. When accepting a financial instrument, the technological aid must register the correct amount to the player's player account.
B. The technological aid must reject any financial instruments deemed invalid.
C. For cashable credits that are in the player's player account, the player must be allowed to cash out or redeem those credits, or both, at any time.
D. A technological aid may not automatically pay an award subject to mandatory tax reporting or withholding.
E. Credit redemption must conform to the following REQUIREMENTS:
1. A technological aid may not directly redeem credits by issuing a voucher or coupon and may not accept vouchers or coupons.
2. Credits may be redeemed either by replaying those credits by using the technological aid or through an Automated Teller Machine that is provided for that purpose.
F. a Technological Aid may not dispense any cash, coupon or other financial instrument.
5-439. Patron deposit accounts
after a player's initial or subsequent deposit into a patron deposit account, the player may use monies in that account to allow that player to participate in a game of bingo. All of a player's bingo winnings shall be automatically and immediately deposited back into the patron deposit account. An account holder may deposit monies into or withdraw monies from that player's Patron deposit account through designated Automated Teller Machines. In the case of a Class A licensee that is the holder of a bar license, a beer and wine bar license or a club license, all wagers shall be made from and all winnings paid into the Patron Deposit Account. A player may withdraw monies from that player's Patron Deposit Account through designated devices for purposes other than playing bingo and may close that player's Patron Deposit Account at any time.
5-440. Minimum technical standards for downloading on a bingo gaming system
a. Downloads from a bingo gaming system are permitted under this chapter as a means of transporting approved content, including software, files, data and prize schedules.
B. Downloads must use secure methodologies that will deliver the downloaded data without alteration or modification.
C. Downloads conducted during operational periods must be performed in a manner that will not affect game play.
D. Downloads may not affect the integrity of accounting data.
E. A technological aid must be capable of providing all of the following information:
1. The time and date of the initiation of each download.
2. The time and date of the completion of each download.
3. A list of The technological aid components to which software was downloaded.
4. The version or versions of download PACKAGES and the version or versions of any software downloaded. Logging of the unique software signature will satisfy the requirements of this paragraph.
5. The outcome of any software verification following the success or failure of the download.
6. The name and identification number, or other unique identifier, of any person or persons who conduct or schedule a download.
F. Downloaded software on a technological aid must be capable of verification by the technological aid through the use of a software signature verification method that meets the requirements of section 5‑429.
5-441. Minimum technical standards for program storage media
a. All removable program storage media used in technological aids must maintain an internal checksum or signature of the storage program media's contents. Verification of this checksum or signature shall be performed after every restart. If the verification fails, the affected technological aid component or components must lock up and enter a fault state.
B. All EPROMs and Programmable Logic Devices that are used in technological aids and that have erasure windows must be fitted with covers over those erasure windows.
C. All unused areas of EPROMs must be written with the inverse of the erased state, random data or repeats of the program data.
D. Flash memory storage components that are used in technological aids and that are intended to have the same logical function as Read‑Only Memory must be write protected or otherwise protected from unauthorized modification.
E. The write cycle must be closed or finished for all CD-ROMs used in technological aids so that it is not possible to write any further data to the compact disk.
F. Write‑protected hard disks used in technological aids are permitted if the hardware means of enabling the write protect is easily viewable and can be sealed in place. Write‑protected hard disks are permitted if the hard disk uses software‑write protection that is verifiable by a testing laboratory.
5-442. Writable and rewritable storage media
a. Writable and rewritable storage media, such as hard disk drives, Flash memory, writable CD-ROMs and writable DVDs, may be used in technological aids if the software stored on that media may be verified as prescribed in this chapter.
b. Program storage must be structured so that there is a verifiable separation of fixed data and variable data.
c. All program storage media that is not rewritable in circuit must be uniquely identified by displaying all of the following information:
1. The name of the Manufacturer.
2. The Program identifier.
3. The Program version number or numbers.
4. Location information if that information is critical.
5-443. Minimum technical standards for electronic random number generation
a. All Random Number Generators used in technological aids must produce output with all of the following:
1. Statistical randomness.
2. Unpredictability.
3. Nonrepeatability.
b. Numbers or other designations produced by a Random Number Generator must be individually statistically random and in the permutations and combinations used in the application under the rules of the game.
C. Numbers or other designations produced by a Random Number Generator must pass one or more statistical tests for randomness to a ninety‑nine percent confidence level, which may include any of the following:
1. The Chi-square test.
2. A Runs test.
3. An examination of the Serial correlation test potency and the degree of serial correlation.
4. An Equidistribution test.
5. A Gap test.
6. A Poker test.
7. A Coupon collector's test.
8. A Permutation test.
9. A Spectral test.
10. A Test on subsequences.
D. The prediction of future outputs of a Random Number Generator may not be feasible even if the algorithm and the past sequence of outputs are known. Unpredictability must be ensured by reseeding or by continuously cycling the Random Number Generator and by providing a sufficient number of Random Number Generator states for the applications supported. Reseeding may be used where the reseeding input is at least as statistically random as, and independent of, the output of the Random Number Generator being reseeded.
e. A Random Number Generator may not be initialized to reproduce the same output stream that the random number generator has previously produced and any two instances of a Random Number Generator may not produce the same streams. The REQUIREMENTS of this subsection are satisfied if the initial seeding comes from A source of true randomness, such as a hardware random noise generator or A combination of time stamps, parameters that are unique to a Bingo gaming system, previous Random Number Generator outputs or some other similar method.
F. Software that relies on a Random Number Generator to derive game outcome events must immediately use the output returned in accordance with the game rules.
G. The use of multiple Random Number Generators is permitted if each random number generator operates in accordance with this section.
H. Random Number Generator outputs may not be arbitrarily discarded or selected. If a sequence of random number generator outputs is required, the whole of the sequence in the order generated must be used in accordance with the game rules.
I. A technological aid may not adjust the Random Number Generator process or the game outcomes based on the history of prizes obtained in previous games and may not use any reflexive software or secondary decision that affects the results shown to the player or game outcome.
J. A Random Number Generator that provides output scaled to given ranges must meet all of the following requirements:
1. Be independent and uniform over the range.
2. Provide numbers scaled to the ranges required by game rules. notwithstanding any other law, a random number generator that provides output scaled to given ranges may discard numbers that do not map uniformly onto the required range but must use the first number in sequence that does map correctly to the range.
3. Be capable of producing every possible outcome of a game according to the game's rules.
4. Use an unbiased algorithm with a measured bias that is not greater than one in fifty million.
5-444. Minimum technical standards for electronic data communications between system components; definition
a. Communication of sensitive data used by, stored in or generated by technological aids must be secure from eavesdropping, access, tampering, intrusion or alteration, except as authorized by the department of gaming.
B. Wireless access points used for the transmission of sensitive data may not be accessible to the general public. Open or unsecured wireless communications used for the transmission of sensitive data are prohibited. Wireless communications must be secured using a methodology that makes eavesdropping, access, tampering, intrusion or alteration impractical.
c. Methodologies must be used that will ensure the reliable transfer of sensitive data and provide a reasonable ability to detect and take action when sensitive data is corrupted.
d. Bingo gaming systems must record detectable unauthorized access or intrusion attempts.
e. Remote communications used in bingo gaming systems may only be allowed if authorized by the department of gaming. Bingo gaming systems must have the ability to enable or disable remote access and the default state must be set to disable remote access.
f. The Failure of data communications used in bingo gaming systems may not affect the integrity of critical memory.
g. The technological aid must log the establishment, loss and reestablishment of data communications between technological aid components that use, store or transmit sensitive data.
H. For the purposes of this section, "Sensitive data" includes:
1. Random Number Generator seeds and outcomes.
2. Encryption keys if the implementation requires transmission of keys.
3. Personal Identification Numbers.
4. Passwords.
5. Financial instrument transactions.
6. Transfers of monies.
7. Player tracking information.
8. Download Packages.
9. Any information that affects the outcome of the game.
5-445. Minimum technical standards for game display
a. The following must at all times be displayed or made readily available to a player on request:
1. the name, rules and options of the game.
2. the Denomination used in the game.
3. Instructions for continuing play on and using the player interface, including the functions of all buttons and other player interface mechanisms.
4. A prize schedule or other type of prize explanation that is sufficient to allow a player to determine the correctness of all prizes awarded, including each of the following:
(a) The range and values obtainable for any variable prize.
(b) Whether the value of a prize depends on the purchase or wager amount.
(c) The means of division of any pari-mutuel prizes.
B. Notwithstanding subsection A of this section, For Bingo Gaming Systems, the prize schedule or other explanation is not required to state that subsets of winning patterns are not awarded as additional prizes, unless there are exceptions, which must be clearly stated to the player.
C. The Player Interface must continually display the following information:
1. A statement that "Malfunctions void all prizes and plays", or an equivalent statement.
2. A statement that "Actual Prizes are Determined by game Play and Other Displays are for Entertainment Only" or an equivalent statement.
3. If the odds of winning any advertised top prize exceed one hundred million to one, the Player Interface must display a statement that "The Odds of winning the advertised top prize exceed one hundred million to one" or an equivalent statement.
