7856.6010 CANCELLATION, SUSPENSION, AND NONRENEWAL OF CONTRACT.
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Subpart 1.
Mandatory.
A contract or authorization for a lottery retailer to sell lottery tickets at a particular business location must be canceled if the retailer has been determined by the director to have:
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A.
been convicted of a felony or gross misdemeanor or a gambling related offense;
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B.
committed fraud, misrepresentation, or deceit;
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C.
provided false or misleading information to the lottery; or
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D.
acted in a manner prejudicial to the public confidence in the integrity of the lottery.
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Subp. 2.
Discretionary.
A contract or authorization for a lottery retailer to sell lottery tickets at a particular business location may be canceled, suspended, or not renewed if it is determined by the director that the retailer:
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A.
changed business location;
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B.
failed to account for lottery tickets received;
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C.
failed to account for proceeds from the sale of lottery tickets;
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D.
violated a provision of the law, rule, game procedures, or any order issued by the director;
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E.
failed to comply with any term or condition of the lottery retailer's contract;
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F.
failed to comply with the bond requirements of part 7856.4020;
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G.
failed to maintain assigned minimum levels of sales;
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H.
committed an act which impairs the retailer's reputation for honesty and integrity;
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I.
failed to properly display lottery point-of-sale material;
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J.
did not have the financial stability or responsibility to act as a lottery retailer;
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K.
acted in a manner that the director finds that the retailer's participation as a lottery retailer is inconsistent with the public interest, convenience, and necessity;
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L.
sold lottery tickets to a person who the retailer knows or has reason to know will resell the tickets to other persons;
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M.
had an employee who has been involved in the sales of lottery tickets who has been convicted of a gambling-related offense or crime of moral turpitude, if contracting with that retailer would endanger the security or integrity of the lottery; or
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N.
sold, bartered, furnished, or given alcoholic beverages to a person under 21 years of age in violation of Minnesota Statutes, section 340A.503, subdivision 2, clause (1), two or more times within a two-year period.
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Subp. 3.
Material change.
A retailer may be canceled, suspended, or not renewed if it is determined by the director that there has been a material change in any of the qualifications for a retailer's contract or factors to be considered under part 7856.2020.
History:
14 SR 2315; 21 SR 147; 30 SR 478