5-512. Licenses to sell tickets or shares; fee; conditions; definitions

A. A license as an agent to sell lottery tickets or shares shall not be issued to any person to engage in business exclusively as a lottery sales agent. Before issuing a license as a lottery sales agent to any person the director shall consider factors such as the financial responsibility and security of the person and the nature of the person's business activity, the person's background and reputation in the community, the accessibility of the person's place of business or activity to the public, the accessibility of existing licensees to serve the public convenience and the volume of expected sales.

B. A person lawfully engaged in nongovernmental business on state property may be licensed as a lottery sales agent.

C. The director may establish by rule and collect a fee for a license issued pursuant to this section.

D. A license is not assignable or transferrable.

E. A licensed agent or licensed agent's employee may sell lottery tickets or shares only on the premises stated in the license of the agent.

F. The director may purchase a blanket bond covering the activities of licensed agents.

G. A licensed agent shall display the licensed agent's license or a copy of the license conspicuously in accordance with the rules prescribed by the director.

H. If a licensed agent sells lottery tickets or shares on leased premises and all or part of the agent's rental payments are based on the total volume of sales made at the premises, the compensation paid by the state lottery commission to the agent for the sale of tickets and shares is the amount of the sale for the purposes of determining the agent's rental payments. This subsection does not apply if the lease agreement expressly provides that the total volume of sales made at the premises includes sales of lottery tickets or shares.

I. By March 31, 2001, the commission shall adopt rules to establish penalties for a licensed agent who violates section 5-515 or 5-515.01. The penalty for a subsequent violation within any twelve month period shall be more severe than the penalty for a prior violation.

J. The director shall not require a licensed agent, as a condition of securing or continuing to hold a license to sell or to sell lottery tickets or shares to the public, to sell such tickets or shares through or by the use of a self-service vending machine at the licensed agent's premises.

K. For the purposes of this section, acts or omissions of an employee at the premises of a licensed agent or sales of tickets or shares by vending machine in violation of section 5-515 or 5-515.01 shall be deemed acts or omissions of the licensed agent only at the premises where the acts, omissions or sales occurred.

L. For the purposes of this section:

1. "Person" means an individual, association, corporation, club, trust, estate, society, company, joint stock company, receiver, trustee or referee, any other person acting in a fiduciary or representative capacity who is appointed by a court, or any combination of individuals. Person includes any department, commission, agency or instrumentality of this state, including any county, city or town and any agency or instrumentality of this state or of a county, city or town.

2. "Premises" means the physical location and address listed on the license of the licensed agent where lottery tickets or shares may be sold.

5-512. Licenses to sell tickets or shares; fee; conditions; definitions

A. A license as an agent to sell lottery tickets or shares shall not be issued to any person to engage in business exclusively as a lottery sales agent. Before issuing a license as a lottery sales agent to any person the director shall consider factors such as the financial responsibility and security of the person and the nature of the person's business activity, the person's background and reputation in the community, the accessibility of the person's place of business or activity to the public, the accessibility of existing licensees to serve the public convenience and the volume of expected sales.

B. A person lawfully engaged in nongovernmental business on state property may be licensed as a lottery sales agent.

C. The director may establish by rule and collect a fee for a license issued pursuant to this section.

D. A license is not assignable or transferrable.

E. A licensed agent or licensed agent's employee may sell lottery tickets or shares only on the premises stated in the license of the agent.

F. The director may purchase a blanket bond covering the activities of licensed agents.

G. A licensed agent shall display the licensed agent's license or a copy of the license conspicuously in accordance with the rules prescribed by the director.

H. If a licensed agent sells lottery tickets or shares on leased premises and all or part of the agent's rental payments are based on the total volume of sales made at the premises, the compensation paid by the state lottery commission to the agent for the sale of tickets and shares is the amount of the sale for the purposes of determining the agent's rental payments. This subsection does not apply if the lease agreement expressly provides that the total volume of sales made at the premises includes sales of lottery tickets or shares.

I. By March 31, 2001, the commission shall adopt rules to establish penalties for a licensed agent who violates section 5-515 or 5-515.01. The penalty for a subsequent violation within any twelve month period shall be more severe than the penalty for a prior violation.

J. The director shall not require a licensed agent, as a condition of securing or continuing to hold a license to sell or to sell lottery tickets or shares to the public, to sell such tickets or shares through or by the use of a self-service vending machine at the licensed agent's premises.

K. For the purposes of this section, acts or omissions of an employee at the premises of a licensed agent or sales of tickets or shares by vending machine in violation of section 5-515 or 5-515.01 shall be deemed acts or omissions of the licensed agent only at the premises where the acts, omissions or sales occurred.

L. For the purposes of this section:

1. "Person" means an individual, association, corporation, club, trust, estate, society, company, joint stock company, receiver, trustee or referee, any other person acting in a fiduciary or representative capacity who is appointed by a court, or any combination of individuals. Person includes any department, commission, agency or instrumentality of this state, including any county, city or town and any agency or instrumentality of this state or of a county, city or town.

2. "Premises" means the physical location and address listed on the license of the licensed agent where lottery tickets or shares may be sold.