Lottery sales agent

# (a)

CLC certification. The CLC shall certify on each lottery sales agent license application that it authorizes submission of the application by such applicant at such location and that it shall activate such applicant as a lottery sales agent upon licensure.

# (b)

Qualifications for licensure. Any person desiring a lottery sales agent license shall make application, under oath, on forms prescribed by the division. An applicant for a lottery sales agent license shall be required to supply in its application, at a minimum: The name, nature, and location of applicant's business; applicant's federal tax identification number, Connecticut tax registration number, and, where applicable, social security number; names, addresses and dates of birth of officers, principal owners, and designated employee in charge of applicant's business; an explanation of any criminal conviction, other than minor traffic offenses, of applicant, its officers, principal owners, or employee-in-charge; an explanation of any tax disputes or delinquencies involving taxes owed to the state of Connecticut by applicant; and the names and addresses of two business references. No applicant will be issued a license to engage in business exclusively as a lottery sales agent. In determining an applicant's qualifications for licensure as a lottery sales agent, the division shall consider the following factors:

# (1)

The financial responsibility of the applicant. In this connection, the division may conduct an investigation into the credit worthiness of the applicant as it relates to the integrity of the applicant utilizing the services of a commercial credit-reporting agency. The CLC may require that the applicant post and maintain a surety bond at applicant's sole expense in an amount determined by the CLC;

# (2)

The veracity and completeness of the information submitted with the license application;

# (3)

The applicant's reputation for honesty and integrity;

# (4)

Insofar as permitted by law, any record of criminal convictions;

# (5)

The security of the particular business premises designated in the application as a lottery sales location;

# (6)

Certification of municipal tax compliance; and

# (7)

Such other information as the division may deem pertinent to the issuance of a lottery sales agent license, including, but not limited to, the provisions of section 12-568a-10(d) of the Regulations of Connecticut State Agencies.

# (c)

Corporate or limited liability company or partnership applicants. In the event the applicant is a corporation, limited liability company or limited liability partnership, the division shall require that its principal owner or a natural person connected with the corporate, limited liability company or limited liability partnership applicant acceptable to the division, assume in writing, joint and several liability with said corporate, limited liability company or limited liability partnership applicant prior to the issuance of said lottery sales agent license. In the event said corporate or limited liability company or partnership lottery sales agent licensee shall thereafter be adjudicated a delinquent agent pursuant to section 12-568a-13 of the Regulations of Connecticut State Agencies, and the CLC Rules of Operation, the division and/or the CLC may avail itself of any appropriate collection procedures against said corporate or limited liability company or partnership licensee or natural person or both.

Division of Special Revenue § 12-568a-6

# (d)

Change of operations. A lottery sales agent license shall not be transferred or sold. Changes in the ownership, location, or name of an agent's business may only be made in accordance with the following provisions:

# (1)

When the ownership of the licensee's business enterprise is to be transferred, if the proposed transferee wishes to continue lottery sales in connection with such enterprise, said transferee must submit an application for a new lottery sales agent license in advance of such transfer. Provision shall be made at closing for the resolution of any obligations owed the CLC as a result of the transferor's lottery business, and no license will be issued to the transferee if the transferor's lottery obligations are unpaid. This subsection shall also apply when there is any change in the parties who comprise the ownership of an agent's business or when there is a forty-nine percent (49%) or greater change in the ownership of any corporate stock of a corporate agent.

# (2)

An agent desiring to move its lottery business from one location to another must make proper application on forms provided by the division.

# (3)

An agent wishing to change its name must inform the division in writing. In considering whether to issue a license to such transferee or to permit lottery sales following a change in business name or location the division may apply the same criteria used in determining initial eligibility. The division, however, may defer action on any such application or request if a delinquency assessment has been imposed, a license suspension or revocation action is pending against the agent or decision having been rendered, an appeal is pending.

# (e)

License suspension and revocation. The executive director or any designee authorized by him shall have the authority to suspend or revoke a lottery sales agent's license after a hearing held in accordance with chapter 54 of the Connecticut General Statutes for good cause for any one of the following reasons:

# (1)

If the agent's license application contains false or misleading information;

# (2)

If the agent violates or fails to comply with the provisions of sections 12-568a and 12-800 to 12-818, inclusive, of the Connecticut General Statutes or with sections 12-568a-1 to 12-568a-23, inclusive, of the Regulations of Connecticut State Agencies;

# (3)

If the agent commits an act which seriously impairs its reputation for honesty and integrity; or

# (4)

If the agent fails to sell and redeem lottery tickets in accordance with the official procedures of the CLC.

# (f)

License renewal.

# (1)

Any lottery sales agent license issued by the division shall be valid for no more than one year.

# (2)

A licensed lottery sales agent having applied for a license renewal prior to its expiration may continue lottery sales activity until final agency action on the renewal application in accordance with section 4-182 of the Connecticut General Statutes.

# (3)

Each applicant for license renewal shall certify on the application that all information on file with the division is current, accurate and complete. In the event of any changes, such changes shall be reported to the division within 30 days of such change and the division may require an applicant to apply for a license pursuant to the provisions of this section.

# (4)

The division shall notify each agent 60 days in advance of the due date for such renewal application.