Current through Register Vol. 46, No. 19, March 20, 2024
(1) The lottery may
suspend or revoke any license issued pursuant to these rules for one or more of
the following reasons:
a. Failing to meet or
maintain the eligibility criteria for license application and issuance
established by Iowa Code chapter 99G or these rules.
b. Violating any of the provisions of Iowa
Code chapter 99G, these rules, or the license terms and conditions.
c. Failing to file any return or report or to
keep records required by the lottery; failing to maintain an acceptable level
of financial responsibility as evidenced by the financial condition of the
business, incidents of failure to pay taxes or other debts, or by the giving of
financial instruments that are dishonored or electronic funds transfers that
are not paid; fraud, deceit, misrepresentation, or other conduct prejudicial to
the public confidence in the lottery.
d. If public convenience is adequately served
by other licensees.
e. Failing to
sell a minimum number of tickets as established by the lottery.
f. A history of thefts or other forms of
losses of tickets or revenue from the business.
g. Violating federal, state, or local law or
allowing the violation of any of these laws on premises occupied by or
controlled by any person over whom the retailer has substantial
control.
h. Obtaining a license by
fraud, misrepresentation, concealment or through inadvertence or
mistake.
i. Making a
misrepresentation of fact to the board or lottery on any report, record,
application form, or questionnaire required to be submitted to the board or
lottery.
j. Denying the lottery or
its authorized representative, including authorized local law enforcement
agencies, access to any place where a licensed activity is conducted.
k. Failing to promptly produce for inspection
or audit any book, record, document, or other item required to be produced by
law, these rules, or the terms of the license.
l. Systematically pursuing economic gain in
an occupational manner or context which is in violation of the criminal or
civil public policy of this state if such pursuit creates cause to believe that
the participation of such person in these activities is inimical to the proper
operation of an authorized lottery.
m. Failing to follow the instructions of the
lottery for the conduct of any particular game or special event.
n. Failing to follow security procedures of
the lottery for the management of personnel, handling of tickets, or for the
conduct of any particular game or special event.
o. Making a misrepresentation of fact to a
purchaser, or prospective purchaser, of a ticket, or to the general public with
respect to the conduct of a particular game or special event.
p. For a licensee who is an individual, when
the lottery receives a certificate of noncompliance from the child support
recovery unit in regard to the licensee, unless the unit furnishes the
department with a withdrawal of the certificate of noncompliance.
q. Allowing activities on the licensed
premises that could compromise the dignity of the state.
r. Failing to accurately or timely account or
pay for lottery products, lottery games, revenues, or prizes as required by the
lottery.
s. Filing for or being
placed in bankruptcy or receivership.
t. Engaging in any conduct likely to result
in injury to the property, revenue, or reputation of the lottery.
u. Making any material change, as determined
in the sole discretion of the lottery, in any matter considered by the lottery
in executing the contract with the retailer.
v. When the lottery receives a certificate of
noncompliance from the centralized collection unit of the department of revenue
in regard to nonpayment of a state debt, unless the unit furnishes the lottery
with a withdrawal of the certificate of noncompliance. This paragraph applies
both to sole proprietorships and to persons with the requisite ownership
interest in or relation to any other organized business entity as set forth in
531-12.3 (99G). This paragraph applies in addition to the procedures set forth
in Iowa Code chapter 272D.
(2) The effective date of revocation or
suspension of a license, or denial of the issuance or renewal of a license, as
specified in the notice required by Iowa Code section 252J.8, shall be 60 days
following service of the notice upon the licensee. The effective date of
revocation or suspension of a license, or denial of the issuance or renewal of
a license, for nonpayment of state debt, as specified in the notice required by
Iowa Code section 272D.8, shall be 60 days following service of the notice upon
the licensee. The effective date for all other notices of revocation or
suspension shall be 20 days following service upon a licensee.
(3) If a retailer's license is suspended for
more than 180 days from the effective date of the suspension, the lottery will
revoke the retailer's license upon 15 days' notice served in conformance with
531-12.13 (99G,252J,272D).
(4) Upon
suspicion that a retailer has sold a ticket to an underage player, the lottery
will investigate and provide a written warning to the retailer describing the
report of the event and of the potential violation of Iowa Code section
99G.30(3). In the event a retailer sells a ticket to an underage player and the
lottery can substantiate the claim, the lottery may suspend the retailer's
license for 7 days. When a retailer sells a ticket to an underage player and
the lottery can substantiate the claim a second time in a period of one year
from the date of the first event, the lottery may suspend the retailer's
license for a period of 30 days. When a retailer sells a ticket to an underage
player and the lottery can substantiate the claim a third time in a period of
one year from the date of the first event as described in this rule, the
retailer's license may be suspended for one year.
(5) Upon revocation or suspension of a
retailer's license of 30 days or longer, the retailer shall surrender to the
lottery, by a date designated by the lottery, the license, lottery
identification card, and all other lottery property. The lottery will settle
the retailer's account as if the retailer had terminated its relationship with
the lottery voluntarily.
This rule is intended to implement Iowa Code sections 99G.9(3),
99G.21(2), 99G.24, 99G.27, 99G.30(3), 99G.35, 252J.8, and
272D.8(2).