Current through Register Vol. 56, No. 18, September 16, 2024
(a) The Director may request additional
information from the applicant after receipt of an application. An applicant
for a courier service registration shall cooperate fully with the Division's
requests in the course of the application process. Failure to cooperate with
the Division shall be a violation of this section and shall be in itself
sufficient grounds for denial of such application. In evaluating an application
for a courier service registration, the Division shall consider the following
factors, including, but not limited to:
1.
Financial responsibility and security of the business or activity in which such
person or business entity is engaged;
2. The sufficiency of the audit and financial
controls, technical standards, and internal controls for the proposed courier
service system, including the safeguarding of courier customer personal
information, including credit cards, banking information, and other personal
financial information, and the safeguarding of the system as a whole;
3. Business experience operating a courier
service system;
4. Whether the
application submitted contains a business plan demonstrating that compliance
with all conditions of a courier service registration is achievable;
5. Criminal history background. All key
personnel of courier service shall consent to disclosure of such information
and to undergo such investigations as needed to substantiate their moral
character and integrity. The criminal history background check of all key
employees must be performed by the New Jersey Division of Gaming Enforcement
and will be at the expense of the courier service applicant;
6. Credit reporting;
7. Sufficiency of existing lottery sales
agents and courier service registrations to serve the public
convenience;
8. Volume of expected
sales;
9. Disclosure of any
previous application for agent licensure or courier service registration with
the New Jersey Lottery and/or any other state or international lottery.
Disclosure of any courier service business or similar business conducted by the
courier service applicant, or any entity controlling, controlled by, or under
common control with the applicant, and any license, permit, or other
authorization related thereto;
10.
Veracity and completeness of information supplied on the application form or
any supplement thereto;
11.
Reputation of the applicant and verification of references including review of
licensure/registration by other lotteries worldwide;
12. All officers, shareholders, and/or
partners, including limited partners, holding a 10 percent or more ownership
interest shall be disclosed and listed with the percentage of shares owned by
each. In addition, any shareholder under the age of 21 that holds a 10 percent
or more ownership interest shall also be disclosed and listed with the
percentage of shares owned by each such owner. The corporate identification
number and Federal identification number including all New Jersey Division of
Taxation assigned suffixes shall also be noted. Failure to disclose the above
information shall be cause for denial of a New Jersey Lottery registration
under N.J.A.C.
17:20-5.1(a);
13. A courier service applicant shall submit
a disengagement plan in the event that a courier service ceases operations in
New Jersey for any reason, including bankruptcy. A disengagement plan should
discuss, in sufficient detail, the following: full reimbursement of courier
customers, including all winnings, delivery of winning tickets, protection of
courier customer's personal information, disposition of tickets in storage, and
all other related termination activities;
14. A courier service applicant shall
describe, in sufficient detail, its process to securely deliver tickets to
courier customers and the time frame for delivering tickets to courier
customers. See N.J.A.C. 17:20-12.17(b);
15. A courier service applicant shall provide
the name, address, and copy of written contractual relationship for each of its
prospective affiliate agents. See N.J.A.C. 17:20-12.10(a)1;
16. A courier service applicant shall
describe, in sufficient detail, how it will facilitate the requirement of the
Courier Service Act that courier customers have the option at all times to
obtain their ticket(s). See N.J.A.C. 17:20-12.15(d);
17. A courier service applicant shall
describe, in sufficient detail, its internal controls. See N.J.A.C.
17:20-12.13;
18. A courier service
applicant that is a business entity shall provide copies of all incorporation
charters or other formation documents and copies of its bylaws or other
procedures concerning its business entity governance; and
19. A courier service applicant shall
describe, in sufficient detail, its responsible gambling/responsible play plan,
including a description of related experience.
(b) The Director shall not register a courier
service unless the courier service demonstrates it can comply with the
requirements of the Courier Service Act and this subchapter, and demonstrates
that the courier service website and/or courier service mobile application can
operate in accordance with such requirements, including, but not limited to:
1. Displaying the disclosures required by the
Courier Service Act and this subchapter;
2. Establishing successful geolocation and
age verification of courier customers by presenting to the Division a live
demonstration of the website and mobile application;
3. Securing the personal and financial
information of all courier customers, including those on the self-exclusion
list;
4. Meeting all of the
required features and technical standards for a courier service in this
subchapter;
5. If a courier service
intends to employ courier service-produced play slips in its business plan, the
courier service produced play slips must be at least as accurate as the play
slips supplied by the Lottery. A courier service applicant must supply a
sufficient number of courier service produced sample play slips to the Division
for testing and written approval prior to use. Any changes to play slips will
require re-testing and approval, in writing, prior to use. See N.J.A.C.
17:20-12.11(n).
(c) The
courier service shall have independent third-party testing performed per the
requirements of N.J.A.C. 17:20-12.14.
(d) After the Director makes a determination
on an application, the Director shall notify the applicant, in writing, if the
Director will permit it to become a registered courier service. Such notice
shall list all requirements under this chapter that must be in place and
verified prior to the courier service commencing operations. Additionally, such
written notification will address the parts of the application where the
prospective courier service is to propose solutions for the Director's review
and approval, such as ticket delivery method(s). The notification will document
which solutions are approved, disapproved, whether additional information is
needed, or any other requirement that needs addressing. When the Director
provides such a notice but the prospective courier service has not promptly
taken steps to satisfy such requirements, or the Division has not been able to
verify that the requirements are in place within 90 days after the notice was
issued, the Director may issue another notice, either setting forth a date by
which such requirements must be met or the notice permitting registration will
be rescinded.
(e) In making a
determination on an application the Director may:
1. Relax one or more requirements of this
chapter to the extent that fulfilment of same is deemed unnecessary for the
satisfactory completion of a particular application review. Relaxation will
only be granted when the Director otherwise determines, in his or her
discretion, that the applicant will operate a courier service in compliance
with the Courier Services Act and this chapter, and in a manner necessary to
ensure the integrity and reputation of the New Jersey Lottery is maintained;
and
2. Grant a registration subject
to conditions as may reasonably assure the Director, in her or his discretion,
that the prospective courier service will, at the time the prospective courier
service begins operations, meet the registration criteria set forth in the
Courier Service Act and this chapter. In the event that a courier service is
ready to begin operations and the Director determines that one or more of the
conditions listed in the notice pursuant to (e)3 below have not been satisfied,
the conditional registration will be revoked until such time that the Director
determines that the courier service is in conformance with the
notice;
3. Any such relaxation of
the requirements of this chapter or conditions upon the registration shall be
set forth in detail in the notice provided pursuant to this section;
and
4. Upon successful
registration, the Division will issue the following:
i. A courier service registration approval
letter. This letter will serve as the notification that a courier service is
officially approved as a registered courier service in New Jersey and that the
courier service can commence courier service sales in the State of New Jersey.
This letter will also detail any restrictions or limitations that the lottery
may impose on a courier service, based on the courier service approved
application. Additionally, the letter will document any waiver granted pursuant
to N.J.A.C. 17:20-12.14(c);
ii. An
official courier service certificate of registration will be issued for each
location at which the courier service proposes to process tickets. These
certificates must be displayed in a prominent area within the courier service's
processing facilities; and
iii. An
electronic logo signifying that the courier service is an officially registered
courier service in New Jersey. This logo must be prominently displayed on the
courier service's website and/or mobile application.