Current through Register Vol. 48, No. 38, September 20, 2024
a) It is the obligation of each Agent to
remain current on the Agent's financial obligations to the Department. Lottery
accounts are due and owing, in full, each Wednesday, unless the Agent has been
notified by the Department of an alternate settlement day due to a bank holiday
or other business disruption. Accounts not settled on the designated settlement
day shall be deemed delinquent.
b)
The Department will apply sanctions with respect to delinquent Agent accounts,
according to the following schedule of sanctions:
1) First delinquency: In the event an Agent
is delinquent in settlement of that Agent's Lottery account, and the
delinquency is the first within the past 30 days, including the month of
delinquency, the Agent will transfer the funds to the Department's account by
4:00 p.m. the next business day, if the delinquency was reported before noon
(12:00 p.m.), or by 10:00 a.m. the second business day if the delinquency was
reported after noon. If the delinquent settlement amount is paid by the
extended settlement deadline, the Agent will be charged with one delinquency
but will receive no further sanction. However, if the settlement amount is not
paid by the extended settlement deadline, the delinquent Agent's terminal and
any related terminals will be immediately deactivated and the account will be
referred to the Lottery's accounts receivable staff. The terminal or related
terminals will not be reactivated until the follow-up report is received and
reviewed by the Department's Chief Financial Officer or designee;
2) Second delinquency: In the event an Agent
is delinquent in settlement of that Agent's Lottery account, and the
delinquency is the second one in the past 90 days, including the month of the
delinquency, the delinquent Agent's terminal or related terminals will be
immediately deactivated and the Agent will be charged with a second
delinquency. When the delinquent settlement amount is deposited to an account
at a branch of the Department's chosen bank or wire transferred to the
Department's account, the terminal or related terminals will be reactivated
unless the second incident is within one month after the first, or the payment
was made after the extended payment deadline. If this occurs, the terminal and
any related terminals will be reactivated only after review and approval by the
Department's Chief Financial Officer or designee. In determining whether to
reactivate a terminal or related terminals, Department staff may consider the
Agent's prior history, general financial status as disclosed by a current
credit report, ability to provide a security deposit, letter of credit or bond
to protect against future delinquencies, and other relevant financial and
administrative information as may be available to or requested by the
Department;
3) Third delinquency:
In the event an Agent is delinquent in settlement of that Agent's Lottery
account or any extended payment deadline, and the delinquency is the third one
in the past 12 months, including the month of the delinquency, the delinquent
Agent's terminal and any related terminals will be immediately deactivated and
the Agent will be charged with a third and final delinquency, at which point
the Department will revoke an Agent's license.
c) The Department may suspend or revoke an
Agent's license after review of a delinquency, at any stage, if the Director
determines that suspension or termination is in the best interest of the
Lottery. Prior to making a determination to suspend or revoke, the Department
will conduct an evaluation of the circumstances surrounding delinquency,
including a review of a delinquent agent's past delinquency record, in order to
differentiate between incidental agent management error and lack of financial
stability or responsibility.
d) It
is the responsibility of the Agent to ensure that all payments due to the
Department are properly prepared. Failure to properly prepare and tender any
payment due to the Department shall not be an excuse for failure to fulfill
obligations due to the Department.
e) The deactivation or removal of an on-line
terminal, or the suspension or revocation of the license of an Agent, shall not
relieve the Agent of liability for any obligation due to the
Department.
