Sec. 1770.90 - Delinquent Financial Obligations

ยง 1770.90. Delinquent Financial Obligations

a) It is the obligation of each Lottery sales agent to remain current on his or her financial obligations to the Department. Lottery accounts are due and owing, in full, each Wednesday, unless the sales 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 licensed sales agent accounts, according to the following schedule of sanctions:

1) First delinquency: In the event a licensed sales agent is delinquent in settlement of his or her Lottery account, and the delinquency is the first within the past 12 months, including the month of delinquency, the licensed agent will deliver correct payment to one of the Department's regional offices or wire 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 licensed sales 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 licensed sales agent's Lottery sales terminal and any related terminals will be immediately deactivated and the account will be referred to the Lottery's accounts receivable staff or appropriate regional office for a follow-up report. The terminal or 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 a licensed sales agent is delinquent in settlement of his or her Lottery account, and the delinquency is the second one in the past 12 months, including the month of the delinquency, the delinquent licensed sales agent's Lottery sales terminal or terminals will be immediately deactivated and the agent will be charged with a second delinquency. When the delinquent settlement amount is paid to one of the Department's regional offices or wire transferred to the Department's account, the Lottery sales terminal or 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 sales 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, Department staff may consider the agent's prior history of delinquencies, 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 such other relevant financial and administrative information as may be available to the Department;

3) Subsequent delinquencies: In the event a licensed sales agent is delinquent in settlement of his or her Lottery account or any extended payment deadline, and the delinquency is the second within 30 days or the third or more in the past 12 months, including the month of the delinquency, the delinquent licensed sales agent's Lottery sales terminal and any related terminals will be immediately deactivated and the licensed sales agent will be charged with an additional delinquency. The terminal or terminals will be reactivated only after payment and after review and approval by the Department's Chief Financial Officer or designee. In determining whether to reactivate a terminal, Department staff may consider the agent's prior history of delinquencies, 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 such other relevant financial and administrative information as may be available to the Department.

c) The Department may suspend or revoke an agent's license after review of a delinquency, at any stage, if the Superintendent 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 licensed sales agent to insure that all payments due the Department are properly prepared. Failure to properly prepare and tender any payment due the Department shall not be an excuse for failure to fulfill obligations due the State Lottery.

e) The deactivation or removal of an on-line terminal, or the suspension or revocation of the license of a Lottery sales agent, shall not relieve the Lottery sales agent of liability for any obligation due the Department.

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

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