Sec. 1770.40 - License Revocation Without Prior Notice

ยง 1770.40. License Revocation Without Prior Notice

a) Pursuant to Section 10.1 of the Act, the Superintendent must act to assure that no person whom the Act declares to be ineligible for a license is granted a license, and that no licensed sales agent who becomes ineligible under the Act is allowed to remain as a licensed sales agent. The Superintendent may revoke or suspend a license without notice or prior hearing, upon determining any of the following:

1) That the licensed sales agent has violated any of the provisions of the Act or this Part;

2) That the licensed sales agent has failed to meet or maintain the eligibility requirements for licensing as provided in the Act and this Part, and the conditions of licensing set forth in Section 1770.60;

3) That the licensed sales agent has been found guilty of fraud, deceit, misrepresentation or other conduct prejudicial to public confidence in the Lottery, including misrepresentation or failure to disclose a material fact on its application for the sale of lottery tickets;

4) That the licensed sales agent has been convicted of a felony, unless the requirements of Section 10.1 of the Act have been met;

5) That the licensed sales agent, or an employee of the licensed sales agent responsible for Lottery ticket sales, has engaged inbookmaking or other forms of illegal gambling;

6) That the licensed sales agent, or an employee of the licensed sales agent responsible for Lottery ticket sales, sold a Lottery ticket to a person under the age of 18;

7) That the licensed sales agent has commingled and has failed to segregate Lottery funds as a trust fund as required by the Act, has failed to surrender Lottery funds and/or unsold instant tickets upon demand by the Department or its authorized agent, has carried an accounts receivable balance in excess of $500 for more than 90 days, or has failed to post a bond or security deposit if required by the Superintendent;

8) That the licensed sales agent has failed to take reasonable security precautions with regard to the handling of Lottery tickets and related materials;

9) That the licensed sales agent has ceased to offer Lottery products for sale, or has changed business ownership, as defined in Section 1770.80(d), with no prior notice to the Department by the seller or buyer;

10) That, on the basis of information made available to the Superintendent since the licensed sales agent was licensed, the Superintendent finds that the licensed sales agent's character and general fitness are such that his or her participation as an agent is inconsistent with the public interest, convenience and necessity.

b) In the event the Superintendent revokes or suspends a license without notice and an opportunity for a prior hearing, the Superintendent shall, by service of appropriate notice pursuant to 11 Ill. Adm. Code 1700.30 and this Part, afford the person whose license has been revoked an opportunity for a hearing within 30 days after the revocation order has been issued. As a result of any such hearing, the Superintendent may confirm the action revoking the license or may order the restoration of the license. In determining whether to confirm the action revoking the license or order the restoration of the license, the Superintendent shall take the following factors into consideration, if applicable:

1) The licensed sales agent's history of past offenses;

2) Whether the licensed sales agent's course of conduct constituted a threat to the safety of the agent, Department officials, or others;

3) Any evidence of the licensed sales agent's ignorance of a material fact that led to his or her improper or unlawful conduct;

4) The degree of cooperation exhibited by the licensed sales agent with Department officials;

5) The degree to which the licensed sales agent profited economically as a result of his or her conduct;

6) Any other evidence offered and noted by the Hearing Officer as demonstrating factors in mitigation or factors in aggravation of the relief sought in the complaint.

c) Upon termination of the licensed sales agent's license, the Department shall arrange, and the licensed sales agent shall participate in, a meeting with the Department's representative for the purpose of rendering the licensed sales agent's final Lottery accounting. At that meeting, the licensed sales agent shall surrender his or her agent's license, unsold Lottery tickets and other Lottery equipment and materials supplied to the licensed sales agent by the Department or its vendors.

d) Nothing in this Section shall be construed to prevent the immediate termination of the licensed sales agent's license upon the licensed sales agent's request and the Department's approval, or upon the effective date of a change in ownership for which the Department has received written documentation, as required by Section 1770.80. The right to a hearing shall not apply in these circumstances.

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Amended at 36 Ill. Reg. 14356, effective September 14, 2012

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