CHAPTER 9. RETAILERS OF LOTTERY TICKETS
IC 4-30-9
Chapter 9. Retailers of Lottery Tickets
IC 4-30-9-1
Terms and conditions for contracting with retailers; adoption ofrules
Sec. 1. The commission shall adopt rules under IC 4-22-2specifying the terms and conditions for contracting with retailerswho will best serve the public interest and promote the sale of lotterytickets.
As added by P.L.341-1989(ss), SEC.1.
IC 4-30-9-2
Selection of retailers; considerations
Sec. 2. (a) In the selection of retailers, the commission shallconsider factors such as the following:
(1) Financial responsibility.
(2) Integrity.
(3) Reputation.
(4) Accessibility of the place of business or activity to thepublic.
(5) Security of the premises.
(6) The sufficiency of existing retailers to serve the public.
(7) Convenience.
(8) The projected volume of sales for the lottery game involved.
(b) In consideration of the factors in subsection (a), thecommission may require the information it considers necessary ofany person proposing to enter into a retailer's contract. However, thecommission may not establish a limitation on the number of retailersand shall make every effort to include small business participation asretailers. Retailer selections shall be based on businessconsiderations and public convenience. Retailers shall be selectedwithout regard to political affiliation.
As added by P.L.341-1989(ss), SEC.1.
IC 4-30-9-3
Prohibited retailers
Sec. 3. The commission may not contract with a person as aretailer that:
(1) is less than eighteen (18) years of age;
(2) is engaged exclusively in the business of selling lotterytickets, although this does not preclude the commission fromselling lottery tickets;
(3) is on the most recent tax warrant list provided to thecommission by the department of state revenue;
(4) has been convicted of, or entered a plea of guilty or nolocontendere to, a felony committed in the preceding ten (10)years, regardless of adjudication, unless the commissiondetermines that:
(A) the person has been pardoned or the person's civil rights
have been restored;
(B) subsequent to the conviction or entry of the plea theperson has engaged in the kind of law abiding commerce andgood citizenship that would reflect well upon the integrity ofthe lottery; or
(C) if the person is a firm, an association, a partnership, atrust, a corporation, a limited liability company, or otherentity, the person has terminated its relationship with theindividual whose actions directly contributed to the person'sconviction or entry of the plea; or
(5) is:
(A) a department, an agency, a commission, a division, anauthority, a board, a bureau, a hospital, or an office of thestate, including a state educational institution;
(B) an entity that performs an essential governmentalfunction;
(C) part of the judicial department of government;
(D) part of the legislative department of government; or
(E) a political subdivision of the state, including an agency,an authority, a board, a bureau, a commission, a committee,a council, a department, a division, an institution, an office,an officer, or other similar body of a political subdivision.
As added by P.L.341-1989(ss), SEC.1. Amended by P.L.32-1990,SEC.4; P.L.8-1993, SEC.36; P.L.2-2007, SEC.62.
IC 4-30-9-4
Certificate of authority
Sec. 4. The commission shall issue a certificate of authority toeach person with whom it contracts as a retailer for purposes ofdisplay under section 6 of this chapter. The issuance of a certificatedoes not confer upon the retailer any right apart from thatspecifically granted in the contract. The authority to act as a retaileris not assignable or transferable.
As added by P.L.341-1989(ss), SEC.1.
IC 4-30-9-5
Suspension or termination of contracts
Sec. 5. A contract executed by the commission under this chaptermust specify the reasons for a suspension or termination of thecontract by the commission, including the following:
(1) Commission of a violation of this article, IC 35-45-5-3,IC 35-45-5-3.5, IC 35-45-5-4, or a rule adopted under thisarticle.
(2) Failure to accurately account for lottery tickets, revenues, orprizes as required by the commission.
(3) Commission of a fraud, deceit, or misrepresentation.
(4) Insufficient sale of tickets.
(5) Conduct prejudicial to public confidence in the lottery.
(6) A material change in a matter considered by the commissionexecuting the contract with the retailer.As added by P.L.341-1989(ss), SEC.1. Amended by P.L.227-2007,SEC.1.
IC 4-30-9-6
Displaying of certificate of authority and estimated odds ofwinning
Sec. 6. Each retailer shall post and keep conspicuously displayedin a location on the premises accessible to the public the following:
(1) Its certificate of authority.
(2) With respect to each game, a statement supplied by thecommission of the estimated odds of winning a prize for thegame.
As added by P.L.341-1989(ss), SEC.1.
IC 4-30-9-7
Tax clearance statement
Sec. 7. Before the commission may enter into a contract with aretailer, the retailer must provide a tax clearance statement from thedepartment of state revenue that certifies that the retailer does notowe delinquent state taxes.
As added by P.L.341-1989(ss), SEC.1.
IC 4-30-9-8
Sale of lottery tickets; restrictions
Sec. 8. A contract with a retailer may not authorize the sale oflottery tickets at more than one (1) location. The commission mayenter into more than one (1) contract with a retailer that has morethan one (1) business location. A retailer must have a separatecertificate of authority to sell lottery tickets for each businesslocation approved by the commission. A retailer may sell lotterytickets only at the location stated on the certificate of authority.
As added by P.L.341-1989(ss), SEC.1.
IC 4-30-9-9
Retailers whose rental payments for premises are contractuallycomputed on basis of a percentage of retail sales; amount of retailsales for lottery tickets
Sec. 9. With respect to a retailer whose rental payments forpremises are contractually computed in whole or in part on the basisof a percentage of retail sales, and where the computation of retailsales is not explicitly defined to include the sale of tickets in alottery, for purposes of such a computation the amount of retail salesfor lottery tickets by the retailer may not exceed the amount of thecompensation received by the retailer from the commission.
As added by P.L.341-1989(ss), SEC.1.
IC 4-30-9-10
Bond or letter of credit; alternatives
Sec. 10. (a) The commission may require each retailer to post anappropriate bond or provide a letter of credit as determined by the
commission, using an insurance company acceptable to thecommission. The amount of the bond or letter of credit may notexceed two (2) times the average lottery ticket sales of the retailer forthe period during which the retailer is required to remit lottery fundsto the commission. For the first ninety (90) days of sales for a newretailer, the amount of the bond or letter of credit may not exceedtwo (2) times the average estimated lottery ticket sales for the periodduring which the retailer is required to remit lottery funds to thecommission. This subsection does not apply to lottery tickets that areprepaid by the retailer.
(b) Instead of a bond or letter of credit, the commission maypurchase blanket bonds or a crime insurance policy endorsed toinclude faithful performance covering all or selected retailers, or mayallow a retailer to deposit and maintain with the treasurer of statesecurities that are interest bearing or accruing and that, with theexception of those specified in subdivisions (1) and (2), are rated inone (1) of the four (4) highest classifications by an establishednationally recognized investment rating service. Securities eligibleunder this subsection are limited to the following:
(1) Certificates of deposit issued by solvent banks or savingsassociations organized and existing under Indiana law or underthe laws of the United States and having their principal place ofbusiness in Indiana.
(2) United States bonds, notes, and bills for which the full faithand credit of the government of the United States is pledged forthe payment of principal and interest.
(3) General obligation bonds and notes of a politicalsubdivision of the state.
(4) Corporate bonds of a corporation that is not an affiliate orsubsidiary of the depositor.
These securities shall be held in trust and must have a market valueat least equal to an amount required by the commission.
(c) Instead of a bond, letter of credit, blanket bond, or crimeinsurance policy endorsed to include faithful performance, thecommission may establish a self-insurance fund to provide protectionto the commission for a breach of contract by a retailer. The fundshall be administered by the treasurer of state. The commission maycharge a fee to a retailer for deposit into the fund. The fee shall bereasonably calculated to cover the cost of administering the fund,must be reasonably proportionate to the risk of loss under thecontract with the retailer, as determined by the commission, and mustbe sufficient to maintain an appropriate balance in the fund in thedetermination of the commission. The expenses of administering thefund shall be paid from the fund, from the collections of all claimsagainst retailers for which withdrawals had been made, and by thereceipt of all interest and other earnings of the insurance fund fromany source. All fees, interest, income, or other money or propertypaid to the fund is exempt from all taxes imposed by the state or apolitical subdivision. All fees assessed by the commission under thissection shall be delivered to the treasurer of state and shall be
deposited into an investment account at the bank providingdepository services to the commission. Money in the fund at the endof a state fiscal year does not revert to the state general fund, and themoney in the fund is continually appropriated to the commission forthe purposes specified in this section. Money in the fund shall bepaid to the commission by the treasurer of state in reimbursement ofmonetary loss, costs, or expense, including attorney's fees, incurredby the commission as a result of a breach of contract by a retailer.The fees paid by retailers and the money reimbursed to thecommission by the treasurer of state under this section do notconstitute money received by the commission under IC 4-30-15-1.
(d) The commissioner of insurance shall prescribe the form of thebonds or crime policies required by this section.
As added by P.L.341-1989(ss), SEC.1. Amended by P.L.32-1990,SEC.5; P.L.49-1995, SEC.2.
IC 4-30-9-11
Liquidated damages
Sec. 11. Each contract entered into by the commission under thischapter must contain a provision for payment of liquidated damagesto the commission for a breach of contract by the retailer.
As added by P.L.341-1989(ss), SEC.1.
IC 4-30-9-12
Warrantless searches; prohibition
Sec. 12. A contract entered into by the commission under thischapter may not include a provision allowing for warrantlesssearches.
As added by P.L.341-1989(ss), SEC.1.
IC 4-30-9-13
Accounting of tickets sold; procedures; sale of tickets; payments tocommission; reports; service charges; interest and penalties
Sec. 13. The commission shall establish procedures by which eachretailer must account for all tickets sold by the retailer and accountfor all funds received by the retailer from sales. The contract witheach retailer must include provisions relating to the sale of tickets,payments of money to the commission, reports, service charges, andinterest and penalties, if necessary, that the commission considersappropriate.
As added by P.L.341-1989(ss), SEC.1.
IC 4-30-9-14
Payments to commission for tickets; form
Sec. 14. A payment by a retailer to the commission for tickets maynot be in cash. All payments must be in the form of a check, bankdraft, electronic funds transfer, or other financial instrumentauthorized by the director.
As added by P.L.341-1989(ss), SEC.1.