IC 4-30-9-1 Terms and conditions for contracting with retailers; adoption of
rules
Sec. 1. The commission shall adopt rules under IC 4-22-2
specifying the terms and conditions for contracting with retailers
who will best serve the public interest and promote the sale of lottery
tickets. 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 shall
consider factors such as the following:
(1) Financial responsibility.
(2) Integrity.
(3) Reputation.
(4) Accessibility of the place of business or activity to the
public.
(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), the
commission may require the information it considers necessary of
any person proposing to enter into a retailer's contract. However, the
commission may not establish a limitation on the number of retailers
and shall make every effort to include small business participation as
retailers. Retailer selections shall be based on business
considerations and public convenience. Retailers shall be selected
without 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 a
retailer that:
(1) is less than eighteen (18) years of age;
(2) is engaged exclusively in the business of selling lottery
tickets, although this does not preclude the commission from
selling lottery tickets;
(3) is on the most recent tax warrant list provided to the
commission by the department of state revenue;
(4) has been convicted of, or entered a plea of guilty or nolo
contendere to, a felony committed in the preceding ten (10)
years, regardless of adjudication, unless the commission
determines 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 the
person has engaged in the kind of law abiding commerce and
good citizenship that would reflect well upon the integrity of
the lottery; or
(C) if the person is a firm, an association, a partnership, a
trust, a corporation, a limited liability company, or other
entity, the person has terminated its relationship with the
individual whose actions directly contributed to the person's
conviction or entry of the plea; or
(5) is:
(A) a department, an agency, a commission, a division, an
authority, a board, a bureau, a hospital, or an office of the
state, including a state educational institution;
(B) an entity that performs an essential governmental
function;
(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 to
each person with whom it contracts as a retailer for purposes of
display under section 6 of this chapter. The issuance of a certificate
does not confer upon the retailer any right apart from that
specifically granted in the contract. The authority to act as a retailer
is 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 chapter
must specify the reasons for a suspension or termination of the
contract 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 this
article.
(2) Failure to accurately account for lottery tickets, revenues, or
prizes 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 commission
executing 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 of
winning
Sec. 6. Each retailer shall post and keep conspicuously displayed
in 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 the
commission of the estimated odds of winning a prize for the
game. 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 a
retailer, the retailer must provide a tax clearance statement from the
department of state revenue that certifies that the retailer does not
owe 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 of
lottery tickets at more than one (1) location. The commission may
enter into more than one (1) contract with a retailer that has more
than one (1) business location. A retailer must have a separate
certificate of authority to sell lottery tickets for each business
location approved by the commission. A retailer may sell lottery
tickets 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 contractually
computed on basis of a percentage of retail sales; amount of retail
sales for lottery tickets
Sec. 9. With respect to a retailer whose rental payments for
premises are contractually computed in whole or in part on the basis
of a percentage of retail sales, and where the computation of retail
sales is not explicitly defined to include the sale of tickets in a
lottery, for purposes of such a computation the amount of retail sales
for lottery tickets by the retailer may not exceed the amount of the
compensation 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 an
appropriate bond or provide a letter of credit as determined by the
commission, using an insurance company acceptable to the
commission. The amount of the bond or letter of credit may not
exceed two (2) times the average lottery ticket sales of the retailer for
the period during which the retailer is required to remit lottery funds
to the commission. For the first ninety (90) days of sales for a new
retailer, the amount of the bond or letter of credit may not exceed
two (2) times the average estimated lottery ticket sales for the period
during which the retailer is required to remit lottery funds to the
commission. This subsection does not apply to lottery tickets that are
prepaid by the retailer.
(b) Instead of a bond or letter of credit, the commission may
purchase blanket bonds or a crime insurance policy endorsed to
include faithful performance covering all or selected retailers, or may
allow a retailer to deposit and maintain with the treasurer of state
securities that are interest bearing or accruing and that, with the
exception of those specified in subdivisions (1) and (2), are rated in
one (1) of the four (4) highest classifications by an established
nationally recognized investment rating service. Securities eligible
under this subsection are limited to the following:
(1) Certificates of deposit issued by solvent banks or savings
associations organized and existing under Indiana law or under
the laws of the United States and having their principal place of
business in Indiana.
(2) United States bonds, notes, and bills for which the full faith
and credit of the government of the United States is pledged for
the payment of principal and interest.
(3) General obligation bonds and notes of a political
subdivision of the state.
(4) Corporate bonds of a corporation that is not an affiliate or
subsidiary of the depositor.
These securities shall be held in trust and must have a market value
at least equal to an amount required by the commission.
(c) Instead of a bond, letter of credit, blanket bond, or crime
insurance policy endorsed to include faithful performance, the
commission may establish a self-insurance fund to provide protection
to the commission for a breach of contract by a retailer. The fund
shall be administered by the treasurer of state. The commission may
charge a fee to a retailer for deposit into the fund. The fee shall be
reasonably calculated to cover the cost of administering the fund,
must be reasonably proportionate to the risk of loss under the
contract with the retailer, as determined by the commission, and must
be sufficient to maintain an appropriate balance in the fund in the
determination of the commission. The expenses of administering the
fund shall be paid from the fund, from the collections of all claims
against retailers for which withdrawals had been made, and by the
receipt of all interest and other earnings of the insurance fund from
any source. All fees, interest, income, or other money or property
paid to the fund is exempt from all taxes imposed by the state or a
political subdivision. All fees assessed by the commission under this
section shall be delivered to the treasurer of state and shall be
deposited into an investment account at the bank providing
depository services to the commission. Money in the fund at the end
of a state fiscal year does not revert to the state general fund, and the
money in the fund is continually appropriated to the commission for
the purposes specified in this section. Money in the fund shall be
paid to the commission by the treasurer of state in reimbursement of
monetary loss, costs, or expense, including attorney's fees, incurred
by the commission as a result of a breach of contract by a retailer.
The fees paid by retailers and the money reimbursed to the
commission by the treasurer of state under this section do not
constitute money received by the commission under IC 4-30-15-1.
(d) The commissioner of insurance shall prescribe the form of the
bonds 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 this
chapter must contain a provision for payment of liquidated damages
to 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 this
chapter may not include a provision allowing for warrantless
searches. As added by P.L.341-1989(ss), SEC.1.
IC 4-30-9-13 Accounting of tickets sold; procedures; sale of tickets; payments to
commission; reports; service charges; interest and penalties
Sec. 13. The commission shall establish procedures by which each
retailer must account for all tickets sold by the retailer and account
for all funds received by the retailer from sales. The contract with
each retailer must include provisions relating to the sale of tickets,
payments of money to the commission, reports, service charges, and
interest and penalties, if necessary, that the commission considers
appropriate. 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 may
not be in cash. All payments must be in the form of a check, bank
draft, electronic funds transfer, or other financial instrument
authorized by the director. As added by P.L.341-1989(ss), SEC.1.
IC 4-30-9-1 Terms and conditions for contracting with retailers; adoption of
rules
Sec. 1. The commission shall adopt rules under IC 4-22-2
specifying the terms and conditions for contracting with retailers
who will best serve the public interest and promote the sale of lottery
tickets. 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 shall
consider factors such as the following:
(1) Financial responsibility.
(2) Integrity.
(3) Reputation.
(4) Accessibility of the place of business or activity to the
public.
(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), the
commission may require the information it considers necessary of
any person proposing to enter into a retailer's contract. However, the
commission may not establish a limitation on the number of retailers
and shall make every effort to include small business participation as
retailers. Retailer selections shall be based on business
considerations and public convenience. Retailers shall be selected
without 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 a
retailer that:
(1) is less than eighteen (18) years of age;
(2) is engaged exclusively in the business of selling lottery
tickets, although this does not preclude the commission from
selling lottery tickets;
(3) is on the most recent tax warrant list provided to the
commission by the department of state revenue;
(4) has been convicted of, or entered a plea of guilty or nolo
contendere to, a felony committed in the preceding ten (10)
years, regardless of adjudication, unless the commission
determines 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 the
person has engaged in the kind of law abiding commerce and
good citizenship that would reflect well upon the integrity of
the lottery; or
(C) if the person is a firm, an association, a partnership, a
trust, a corporation, a limited liability company, or other
entity, the person has terminated its relationship with the
individual whose actions directly contributed to the person's
conviction or entry of the plea; or
(5) is:
(A) a department, an agency, a commission, a division, an
authority, a board, a bureau, a hospital, or an office of the
state, including a state educational institution;
(B) an entity that performs an essential governmental
function;
(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 to
each person with whom it contracts as a retailer for purposes of
display under section 6 of this chapter. The issuance of a certificate
does not confer upon the retailer any right apart from that
specifically granted in the contract. The authority to act as a retailer
is 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 chapter
must specify the reasons for a suspension or termination of the
contract 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 this
article.
(2) Failure to accurately account for lottery tickets, revenues, or
prizes 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 commission
executing 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 of
winning
Sec. 6. Each retailer shall post and keep conspicuously displayed
in 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 the
commission of the estimated odds of winning a prize for the
game. 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 a
retailer, the retailer must provide a tax clearance statement from the
department of state revenue that certifies that the retailer does not
owe 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 of
lottery tickets at more than one (1) location. The commission may
enter into more than one (1) contract with a retailer that has more
than one (1) business location. A retailer must have a separate
certificate of authority to sell lottery tickets for each business
location approved by the commission. A retailer may sell lottery
tickets 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 contractually
computed on basis of a percentage of retail sales; amount of retail
sales for lottery tickets
Sec. 9. With respect to a retailer whose rental payments for
premises are contractually computed in whole or in part on the basis
of a percentage of retail sales, and where the computation of retail
sales is not explicitly defined to include the sale of tickets in a
lottery, for purposes of such a computation the amount of retail sales
for lottery tickets by the retailer may not exceed the amount of the
compensation 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 an
appropriate bond or provide a letter of credit as determined by the
commission, using an insurance company acceptable to the
commission. The amount of the bond or letter of credit may not
exceed two (2) times the average lottery ticket sales of the retailer for
the period during which the retailer is required to remit lottery funds
to the commission. For the first ninety (90) days of sales for a new
retailer, the amount of the bond or letter of credit may not exceed
two (2) times the average estimated lottery ticket sales for the period
during which the retailer is required to remit lottery funds to the
commission. This subsection does not apply to lottery tickets that are
prepaid by the retailer.
(b) Instead of a bond or letter of credit, the commission may
purchase blanket bonds or a crime insurance policy endorsed to
include faithful performance covering all or selected retailers, or may
allow a retailer to deposit and maintain with the treasurer of state
securities that are interest bearing or accruing and that, with the
exception of those specified in subdivisions (1) and (2), are rated in
one (1) of the four (4) highest classifications by an established
nationally recognized investment rating service. Securities eligible
under this subsection are limited to the following:
(1) Certificates of deposit issued by solvent banks or savings
associations organized and existing under Indiana law or under
the laws of the United States and having their principal place of
business in Indiana.
(2) United States bonds, notes, and bills for which the full faith
and credit of the government of the United States is pledged for
the payment of principal and interest.
(3) General obligation bonds and notes of a political
subdivision of the state.
(4) Corporate bonds of a corporation that is not an affiliate or
subsidiary of the depositor.
These securities shall be held in trust and must have a market value
at least equal to an amount required by the commission.
(c) Instead of a bond, letter of credit, blanket bond, or crime
insurance policy endorsed to include faithful performance, the
commission may establish a self-insurance fund to provide protection
to the commission for a breach of contract by a retailer. The fund
shall be administered by the treasurer of state. The commission may
charge a fee to a retailer for deposit into the fund. The fee shall be
reasonably calculated to cover the cost of administering the fund,
must be reasonably proportionate to the risk of loss under the
contract with the retailer, as determined by the commission, and must
be sufficient to maintain an appropriate balance in the fund in the
determination of the commission. The expenses of administering the
fund shall be paid from the fund, from the collections of all claims
against retailers for which withdrawals had been made, and by the
receipt of all interest and other earnings of the insurance fund from
any source. All fees, interest, income, or other money or property
paid to the fund is exempt from all taxes imposed by the state or a
political subdivision. All fees assessed by the commission under this
section shall be delivered to the treasurer of state and shall be
deposited into an investment account at the bank providing
depository services to the commission. Money in the fund at the end
of a state fiscal year does not revert to the state general fund, and the
money in the fund is continually appropriated to the commission for
the purposes specified in this section. Money in the fund shall be
paid to the commission by the treasurer of state in reimbursement of
monetary loss, costs, or expense, including attorney's fees, incurred
by the commission as a result of a breach of contract by a retailer.
The fees paid by retailers and the money reimbursed to the
commission by the treasurer of state under this section do not
constitute money received by the commission under IC 4-30-15-1.
(d) The commissioner of insurance shall prescribe the form of the
bonds 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 this
chapter must contain a provision for payment of liquidated damages
to 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 this
chapter may not include a provision allowing for warrantless
searches. As added by P.L.341-1989(ss), SEC.1.
IC 4-30-9-13 Accounting of tickets sold; procedures; sale of tickets; payments to
commission; reports; service charges; interest and penalties
Sec. 13. The commission shall establish procedures by which each
retailer must account for all tickets sold by the retailer and account
for all funds received by the retailer from sales. The contract with
each retailer must include provisions relating to the sale of tickets,
payments of money to the commission, reports, service charges, and
interest and penalties, if necessary, that the commission considers
appropriate. 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 may
not be in cash. All payments must be in the form of a check, bank
draft, electronic funds transfer, or other financial instrument
authorized by the director. As added by P.L.341-1989(ss), SEC.1.
IC 4-30-9-1 Terms and conditions for contracting with retailers; adoption of
rules
Sec. 1. The commission shall adopt rules under IC 4-22-2
specifying the terms and conditions for contracting with retailers
who will best serve the public interest and promote the sale of lottery
tickets. 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 shall
consider factors such as the following:
(1) Financial responsibility.
(2) Integrity.
(3) Reputation.
(4) Accessibility of the place of business or activity to the
public.
(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), the
commission may require the information it considers necessary of
any person proposing to enter into a retailer's contract. However, the
commission may not establish a limitation on the number of retailers
and shall make every effort to include small business participation as
retailers. Retailer selections shall be based on business
considerations and public convenience. Retailers shall be selected
without 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 a
retailer that:
(1) is less than eighteen (18) years of age;
(2) is engaged exclusively in the business of selling lottery
tickets, although this does not preclude the commission from
selling lottery tickets;
(3) is on the most recent tax warrant list provided to the
commission by the department of state revenue;
(4) has been convicted of, or entered a plea of guilty or nolo
contendere to, a felony committed in the preceding ten (10)
years, regardless of adjudication, unless the commission
determines 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 the
person has engaged in the kind of law abiding commerce and
good citizenship that would reflect well upon the integrity of
the lottery; or
(C) if the person is a firm, an association, a partnership, a
trust, a corporation, a limited liability company, or other
entity, the person has terminated its relationship with the
individual whose actions directly contributed to the person's
conviction or entry of the plea; or
(5) is:
(A) a department, an agency, a commission, a division, an
authority, a board, a bureau, a hospital, or an office of the
state, including a state educational institution;
(B) an entity that performs an essential governmental
function;
(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 to
each person with whom it contracts as a retailer for purposes of
display under section 6 of this chapter. The issuance of a certificate
does not confer upon the retailer any right apart from that
specifically granted in the contract. The authority to act as a retailer
is 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 chapter
must specify the reasons for a suspension or termination of the
contract 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 this
article.
(2) Failure to accurately account for lottery tickets, revenues, or
prizes 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 commission
executing 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 of
winning
Sec. 6. Each retailer shall post and keep conspicuously displayed
in 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 the
commission of the estimated odds of winning a prize for the
game. 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 a
retailer, the retailer must provide a tax clearance statement from the
department of state revenue that certifies that the retailer does not
owe 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 of
lottery tickets at more than one (1) location. The commission may
enter into more than one (1) contract with a retailer that has more
than one (1) business location. A retailer must have a separate
certificate of authority to sell lottery tickets for each business
location approved by the commission. A retailer may sell lottery
tickets 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 contractually
computed on basis of a percentage of retail sales; amount of retail
sales for lottery tickets
Sec. 9. With respect to a retailer whose rental payments for
premises are contractually computed in whole or in part on the basis
of a percentage of retail sales, and where the computation of retail
sales is not explicitly defined to include the sale of tickets in a
lottery, for purposes of such a computation the amount of retail sales
for lottery tickets by the retailer may not exceed the amount of the
compensation 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 an
appropriate bond or provide a letter of credit as determined by the
commission, using an insurance company acceptable to the
commission. The amount of the bond or letter of credit may not
exceed two (2) times the average lottery ticket sales of the retailer for
the period during which the retailer is required to remit lottery funds
to the commission. For the first ninety (90) days of sales for a new
retailer, the amount of the bond or letter of credit may not exceed
two (2) times the average estimated lottery ticket sales for the period
during which the retailer is required to remit lottery funds to the
commission. This subsection does not apply to lottery tickets that are
prepaid by the retailer.
(b) Instead of a bond or letter of credit, the commission may
purchase blanket bonds or a crime insurance policy endorsed to
include faithful performance covering all or selected retailers, or may
allow a retailer to deposit and maintain with the treasurer of state
securities that are interest bearing or accruing and that, with the
exception of those specified in subdivisions (1) and (2), are rated in
one (1) of the four (4) highest classifications by an established
nationally recognized investment rating service. Securities eligible
under this subsection are limited to the following:
(1) Certificates of deposit issued by solvent banks or savings
associations organized and existing under Indiana law or under
the laws of the United States and having their principal place of
business in Indiana.
(2) United States bonds, notes, and bills for which the full faith
and credit of the government of the United States is pledged for
the payment of principal and interest.
(3) General obligation bonds and notes of a political
subdivision of the state.
(4) Corporate bonds of a corporation that is not an affiliate or
subsidiary of the depositor.
These securities shall be held in trust and must have a market value
at least equal to an amount required by the commission.
(c) Instead of a bond, letter of credit, blanket bond, or crime
insurance policy endorsed to include faithful performance, the
commission may establish a self-insurance fund to provide protection
to the commission for a breach of contract by a retailer. The fund
shall be administered by the treasurer of state. The commission may
charge a fee to a retailer for deposit into the fund. The fee shall be
reasonably calculated to cover the cost of administering the fund,
must be reasonably proportionate to the risk of loss under the
contract with the retailer, as determined by the commission, and must
be sufficient to maintain an appropriate balance in the fund in the
determination of the commission. The expenses of administering the
fund shall be paid from the fund, from the collections of all claims
against retailers for which withdrawals had been made, and by the
receipt of all interest and other earnings of the insurance fund from
any source. All fees, interest, income, or other money or property
paid to the fund is exempt from all taxes imposed by the state or a
political subdivision. All fees assessed by the commission under this
section shall be delivered to the treasurer of state and shall be
deposited into an investment account at the bank providing
depository services to the commission. Money in the fund at the end
of a state fiscal year does not revert to the state general fund, and the
money in the fund is continually appropriated to the commission for
the purposes specified in this section. Money in the fund shall be
paid to the commission by the treasurer of state in reimbursement of
monetary loss, costs, or expense, including attorney's fees, incurred
by the commission as a result of a breach of contract by a retailer.
The fees paid by retailers and the money reimbursed to the
commission by the treasurer of state under this section do not
constitute money received by the commission under IC 4-30-15-1.
(d) The commissioner of insurance shall prescribe the form of the
bonds 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 this
chapter must contain a provision for payment of liquidated damages
to 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 this
chapter may not include a provision allowing for warrantless
searches. As added by P.L.341-1989(ss), SEC.1.
IC 4-30-9-13 Accounting of tickets sold; procedures; sale of tickets; payments to
commission; reports; service charges; interest and penalties
Sec. 13. The commission shall establish procedures by which each
retailer must account for all tickets sold by the retailer and account
for all funds received by the retailer from sales. The contract with
each retailer must include provisions relating to the sale of tickets,
payments of money to the commission, reports, service charges, and
interest and penalties, if necessary, that the commission considers
appropriate. 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 may
not be in cash. All payments must be in the form of a check, bank
draft, electronic funds transfer, or other financial instrument
authorized by the director. As added by P.L.341-1989(ss), SEC.1.
