Current through Register Vol. 48, No. 38, September 20, 2024
a) Notification of
Change
1) An Agent shall report to the
Director, at least 30 days prior to the effective date of the change, any:
A) Change of name;
B) Change of business organization;
or
C) Transfer, except to the
extent the change occurs as a result of the transfer of interest in publicly
traded securities, in which case the reporting must occur within 30 days after
the transfer or at the time that any reporting of the ownership interest must
be made to the federal Securities and Exchange Commission, whichever is
earlier.
2) Reporting
may be accomplished by completing a departmental form provided for that purpose
or by mailing notice of the proposed change by certified mail, return receipt
requested, postmarked on or before the 30th day
prior to the effective date of the change and addressed to the Department as
follows:
Illinois Lottery
P.O. Box 19081
Springfield, Illinois 62794-9081
b) Each notification of change of name,
ownership or form of business organization of a licensee communicated to the
Director shall include the following information:
1) The name, address and Agent identification
number of the Agent;
2) The name of
the business as it appears on the license application;
3) The proposed new name of the business, if
applicable;
4) The current form of
business organization;
5) The
proposed form of business organization, if applicable;
6) The current owners, managers or
shareholders of the business, as is indicated on the license
application;
7) The proposed
transfer, including the names and addresses of the proposed new owners,
managers or shareholders, the percentage of proposed transfer of equity,
management control, legal ownership, shares or stock; and
8) The anticipated date of the proposed
change in name, business organization or ownership.
c) The Director shall review the changes,
considering current licensing standards, as provided in the Lottery Law and
this Part.
d) The Director, upon
approval of a change in name or a change of business organization that does not
also involve a transfer, shall issue a replacement license reflecting the new
name or business structure. The replacement license shall have an expiration
date no later than the expiration date provided in the previous
license.
e) Except as provided in
this subsection (e), any change of business ownership shall necessitate
termination of the existing licensing agreement, as of the effective date of
the change of ownership. The new owner must submit an application and fee as
provided in Section 1770.20. If the existing Agent
has not provided the Department with required written notification of the
change, the applicant may be required to furnish documentation evidencing the
change in ownership, such as a sales contract. The current license number may
be assigned to the new owner of a location in the following circumstances:
1) If a chain account location previously
operated by a franchisee continues operation under the franchisor or chain
corporate management, and upon corporate guarantee and assumption of the
financial obligations of the licensee;
2) If transfer of the location is assumed by
an immediate family member of the original Agent (parent, sibling, child or
grandparent) and the following conditions are met:
A) The location is in good standing with the
Lottery;
B) The family member
assuming ownership was involved in the day-to-day operation of the business
prior to transfer; and
C) The
family member assuming transfer is qualified to hold a Lottery
license.
f)
Incapacity, Death, Receivership, Bankruptcy or Assignment
1) In the event of the proven incapacity,
death, receivership, bankruptcy or assignment for the benefit of creditors of
any licensed Agent, and upon approval of the Director, the license may continue
under a court-approved or court-confirmed guardian, executor or administrator,
receiver or trustee for the benefit of creditors, who may continue to operate
the business designated under the license, subject to the provisions of the
Lottery Law and this Part, if the person to whom the license is transferred is
otherwise qualified to hold a license.
2) The license, following the transfer, shall
be void in the event the license transferee ceases to hold the court-appointed
or court-confirmed position.
3) The
Director may condition the transfer of any license under this subsection (f)(3)
upon the posting of a bond, or a guaranteed payment in the form of a cashier's
check or money order, on such terms and under such conditions as the Director
may deem necessary to protect the financial interests of the State, provided
that any such bond shall reflect the reasonably anticipated risk of
transfer.
g) Every
change in the point of sale designated in the license shall be reported to the
Director no less than 30 days prior to the effective date of the change. If the
change results from severe damage to or destruction of the point of sale
specified in the license, as a result of fire, natural disaster or other cause
beyond the control of the Agent, the Agent shall promptly notify the Director
of that destruction or damage to the business premises and the consequent
change of location, but in no case shall the notification be made later than 3
days after the damage to or destruction of the premises or change of location.
Upon notification, the Director shall consider the factors set forth in Section
1770.20 to determine whether the
Agent should be licensed to sell Lottery game tickets at the new location. Upon
the Director's approval, a replacement license will be issued, with an
expiration date no later than that of the Agent's original license.
h) If an Agent fails to notify the Director,
in writing, of a transfer before the change occurs, all owners, officers or
other responsible persons named in the application for an Agent's license shall
remain liable to the Director for all Lottery game tickets and proceeds held by
the Agent. This liability extends to:
1)
Tickets issued to, or generated by, the Agent; and
2) All proceeds from the sale of the tickets
(less prizes paid and/or commissions retained) to the date written notice is
received by the Director and a final settlement is conducted, or the date the
Agent's license is revoked or otherwise terminated by the Director, whichever
occurs first.
