Fla. Admin. Code Ann. R. 53ER07-15 - Suspension and Termination of Retailer Contract

Current through Reg. 48, No. 66; April 5, 2022

(1) A retailer contract can be terminated by the retailer at any time upon written notice to the Lottery.
(2) The Lottery will review a retailer's contract and any later-filed application for a new contract, if the retailer has failed to comply with the terms of the current or former retailer contract, or under any of the circumstances listed below, and, based upon the findings of its review, will determine whether to suspend or terminate the current contract or reject the later-filed application.
(a) Retailer has provided false or misleading information in obtaining or attempting to obtain a retailer contract and Certificate of Authority.
(b) Retailer has been convicted of, or has entered a plea of guilty or nolo contendere, regardless of adjudication, to an offense punishable as a felony; or has been convicted of, or has entered a plea of guilty or nolo contendere, regardless of adjudication, to any gambling-related offense.
(c) Retailer has outstanding tax delinquencies owed to the federal government or any taxing authority within the State of Florida.
(d) Retailer has jeopardized the integrity, security or efficient operation of the Lottery.
(e) The ownership or location of the business has changed.
(f) Retailer has failed to accurately account for lottery tickets, revenues or prizes as required by the Lottery.
(g) Retailer has failed to remit or is delinquent in remitting money owed to the Lottery.
(h) Retailer has committed any fraud, deceit or misrepresentation to the Lottery or to any individual purchasing a lottery ticket or tickets from Retailer.
(i) Retailer has sold a lottery ticket or paid a prize to any person under eighteen (18) years of age.
(j) Retailer has sold a lottery ticket at any place other than the place authorized in its Certificate of Authority.
(k) Retailer has not prominently displayed its Certificate of Authority at the approved sales location.
(l) Retailer has not prominently displayed and maintained ticket displays/dispensers and point-of-sale materials provided by the Lottery.
(m) Retailer has not made point-of-sale information for lottery products accessible to the public.
(n) Retailer has sold tickets at a price other than established by the Lottery.
(o) Retailer has violated any rule or regulation promulgated by the Lottery.
(p) Retailer has violated any directive or instruction issued by the Lottery.
(q) Retailer has violated any provision of Chapter 24, F.S.
(r) Retailer's reputation is no longer consistent with the protection of the public interest.
(s) Retailer has materially changed any factor considered by the Lottery in selecting the retailer.
(t) Retailer has engaged in conduct prejudicial to public confidence in the Lottery.
(u) Retailer has exchanged a book(s), ticket(s), or ticket stock with another retailer or location.
(v) Retailer has purchased a book(s) or ticket(s) from another lottery retailer for resale.
(w) Retailer has charged a fee to redeem a lottery ticket or has required a customer to purchase another item in order to purchase a lottery ticket.
(x) Retailer has paid a prize of $600 or more.
(y) Retailer has violated the Lottery's ethics rules or policies.
(3) The Lottery will review the retailer contract of the retailer with the lowest average weekly ticket sales of all Lottery retailers statewide who have been active for at least 26 weeks upon receipt of a retailer application from a business whose sales are projected to exceed the weekly sales average of the retailer that is under review and will terminate such retailer contract, subject to considerations of public convenience (whether the retailer is in a remote location or whether there are other retailers available within a reasonable distance); whether there are extenuating circumstances that have adversely impacted sales volume (for example, the retailer's business is seasonal; road construction has caused a temporary decrease in normal sales volume; or other factors that are temporary in nature); the impact, if any, on the status of a corporate or chain (multi-location) retailer if a terminal is removed from one of the retailer's locations; and the impact, if any, on the overall level of participation of minority businesses as Lottery retailers.
(4) If a retailer possesses multiple locations, restriction, suspension or termination of one (1) location is grounds for restriction, suspension or termination of the others.
(5) The Lottery will review a retailer contract for immediate suspension without prior notice if the Lottery determines that immediate suspension is necessary to ensure the integrity, security, honesty, or fairness of the operation of the Lottery. Reasons that would result in such a determination include, for example, circumstances in which the retailer intentionally fails to tender a ticket or coupon to the player.
(6) The Lottery will review a retailer contract for temporary suspension if the Lottery determines that the retailer, or any of its officers, directors, or employees has been arrested for any violation of law occurring on the retail premises, such as dealing in stolen property, unlawful sale of controlled substances, or maintaining a nuisance.
(7) A retailer whose contract has been terminated for the reasons set forth in paragraph (2)(b) above is prohibited from reapplying for a retailer contract for a period of one (1) year from the date of conviction or entry of plea and any application received during this time period will be rejected. In reviewing any subsequent application from such a retailer, the Lottery will consider the following factors:
(a) Whether the retailer has been pardoned or had his civil rights restored; and
(b) Whether, subsequent to such conviction or plea, the retailer has engaged in the kind of law-abiding commerce and good citizenship that would reflect well upon the integrity of the Lottery. Examples of such conduct would include sustained active involvement in community service organizations or activities; and sustained active involvement in professional or trade associations. To be considered by the Lottery, such law-abiding commerce and good citizenship must be of sufficient duration and degree as to offset any negative effects on the retailer's reputation and, by association, the Lottery's reputation. Under this paragraph, the burden shall be on the retailer to prove to the satisfaction of the Lottery that the retailer has engaged in the kind of law-abiding commerce and good citizenship that would reflect well upon the integrity of the Lottery; and
(c) Whether, if the retailer is a firm, association, partnership, trust, corporation or other entity, the retailer has terminated its relationship with the person whose actions directly contributed to the conviction or plea.
(8) A retailer's sole remedy following termination or suspension of its retailer contract is by such civil action as may be appropriate.

Notes

Fla. Admin. Code Ann. R. 53ER07-15
Specific Authority 24.109(1), 24.112(1) FS. Law Implemented 24.112(5) FS.
New 3-16-07, Replaces 53ER06-24, F.A.C.

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