961 CMR, § 2.15 - Transfer of Location of License, Substantial Change of Ownership, or Complete Change of Ownership

A Sales Agent license is not transferable.

(1) The location of an existing sales agent license may be transferred. If the location of the place of business set forth in the Sales Agent license or in the Sales Agent Application for a license changes, the Sales Agent is to notify the Director immediately in writing and request transfer of the license to the new location or termination of the license. The Director reserves the right to grant or deny the request to transfer the license to the new location. In any event, the Sales Agent shall not sell Lottery tickets nor actively engage in Lottery business as a Sales Agent until such time as a new license is granted covering the new location.

(2) Change of Ownership.

(a) A substantial change in ownership of a business shall mean a transfer of 10% or more in the equity of any business licensed pursuant to law and 961 CMR 2.00. If a business to which a license is issued or its ownership substantially changes, it is incumbent upon those persons who are in control or in ownership of said business at the time the license was last issued to notify the Director of the change immediately in writing and request a retention or a termination of the license. The Director reserves the right to allow or deny the request for a retention of the license, and if the Director denies the request to retain the license, it shall forthwith be revoked.

(b) A complete change of ownership shall mean the sale or other change or transfer not otherwise detailed in 961CMR 2.15(2)(a) of a business.

1. The Director retains the right to deny the application of any prospective licensed sales agent if there is an unpaid obligation to the Lottery at the time of change of said business. It is incumbent upon the persons who are/were in control of said business at the time of license last issue to make all prospective sales agents aware of any and all obligations due to the Lottery. The prospective sales agent should be made aware that if there is a delay in the final accounting to the Lottery his/her/its newly granted license may be suspended until the obligation due the Lottery is satisfied.

2. The Director retains the right to deny the application of any prospective licensed sales agent if there is an unpaid obligation to the Lottery from any prior licensee at the location of the prospective sales agent's place of business.

(3) In the event the Director denies a request to retain a license as set forth in 961 CMR 2.15(2), the persons in control or who are in ownership or otherwise entrusted with the license of said business are to deliver forthwith said license and any other material given by the Director to a Lottery office and to terminate all sales of tickets or other Lottery business until otherwise notified by the Director.

(4) In the event that Sales Agent does not wish to terminate its sale of Lottery tickets or Lottery business because of a change in location or of a substantial change in ownership, the Sales Agent may apply in writing at least 20 days prior to any proposed change of location or substantial change in ownership as defined herein.

(5) The sale of Lottery tickets may be made only pursuant to a Sales Agent's license, and, except as provided in 961 CMR 2.15(6), in the specified locations listed therein. Any violation of this provision is subject to the penalties provided by law, the General Laws of the Commonwealth of Massachusetts, and any pertinent Federal Laws as the facts and 961 CMR 2.00 may warrant.

(6) The Director may permit any Sales Agent to sell Lottery tickets or shares in locations other than those specified in his/her license and:

(a) The Director shall specify the geographical area in which such sales may be made, and the types of locations in which such sales may be made.

(b) No such sales are made on premises used primarily for residential purposes, in or on the property of any school operated by any county or municipality, in or upon the property appurtenant to any facility operated primarily for religious purposes.

(c) Any person making such sales shall be individually approved by the Director or his/her designee, and shall prominently wear and display identification in such form and manner as may be prescribed by the Director.

(d) The Sales Agent and his/her employees shall abide by such other instructions and restrictions as may be prescribed by the Director to govern such sales.

(e) The Sales Agent's license shall bear the phrase "Limited off premises sales permitted", and the agent shall display with his/her license, in such form and manner as the Director may require, the terms and conditions on which such sales may be made.

Notes

961 CMR, § 2.15