Section 1770.40 License Revocation Without Prior Notice

Section 1770

Section 1770.40  License

Revocation Without Prior Notice

a)         Pursuant to Section 10.1 of the Lottery Law, the Director must

act to assure that no person whom the Lottery Law declares to be ineligible for

a license is granted a license, and that no Agent who becomes ineligible under

the Lottery Law is allowed to remain as an Agent.

1)         The Director may revoke or suspend a license without notice or

prior hearing when the Agent has:

A)        violated any of the provisions of the Lottery Law or this Part;

B)        failed to meet or maintain the eligibility requirements for

licensing as provided in the Lottery Law and this Part, and the conditions of licensing

set forth in Section 1770.60;

C)        been found guilty of fraud, deceit, misrepresentation or other

conduct prejudicial to public confidence in the Lottery, including

misrepresentation or failure to disclose a material fact on its application for

the sale of Lottery game tickets;

D)        been

convicted of a felony, reasonably related to the responsibilities of selling

Lottery products, in any jurisdiction, unless the requirements of Section 10.1

of the Act have been met;

E)        in

contravention of the agent's fiduciary duty:

i)          commingled

and has failed to segregate Lottery funds as a "trust fund" as

required by the Lottery Law;

ii)         failed

to surrender Lottery funds and/or unsold instant tickets upon demand by the

Department or its authorized agent;

iii)        carried

an accounts receivable balance in excess of $500 for more than 90 days; or

iv)        failed

to post a bond or security deposit as required by the Director;

F)         failed to take reasonable security precautions with regard to

the handling of Lottery game tickets and related materials;

G)        untimely offered new Lottery products for sale, altogether ceased

to offer Lottery products for sale, or changed business ownership, (see Section

1770.80(d)), with no prior notice to the Department by the seller or buyer;

H)

required by the Director;

F)         failed to take reasonable security precautions with regard to

the handling of Lottery game tickets and related materials;

G)        untimely offered new Lottery products for sale, altogether ceased

to offer Lottery products for sale, or changed business ownership, (see Section

1770.80(d)), with no prior notice to the Department by the seller or buyer;

H)        demonstrated, based on information made available to the Director

after the Agent was licensed, that the Agent's character and general fitness

are such that participation as an Agent is inconsistent with the public

interest, convenience and necessity;

I)         demonstrated,

based on information made available to the Director after the Agent was

licensed, that the Agent or an employee has engaged in discrimination and

harassment inconsistent with the public interest and State and federal law;

J)         demonstrated

insufficient financial stability, integrity and responsibility to conduct Lottery

activities;

K)        demonstrated

insufficient business ability and experience to create and maintain successful Lottery

activities;

L)        filed,

or had filed against it, a proceeding for bankruptcy or has ever been involved

in any formal process to adjust, defer, suspend, or otherwise work out the

payment of any debt;

M)       been

served with a complaint or other notice filed with any public body regarding a

payment of any tax or child support required under any law in any jurisdiction,

when the Agent has been in breach for one or more years; or

N)        currently

or previously been a defendant in litigation involving business practices that

would call into question suitability to be licensed

f any debt;

M)       been

served with a complaint or other notice filed with any public body regarding a

payment of any tax or child support required under any law in any jurisdiction,

when the Agent has been in breach for one or more years; or

N)        currently

or previously been a defendant in litigation involving business practices that

would call into question suitability to be licensed.

2)         The

Director may revoke or suspend a license without notice or prior hearing when

the Agent, or an employee of the Agent responsible for Lottery game ticket

sales, has:

A)

engaged in

bookmaking or other forms of illegal

gambling, theft or fraud in any jurisdiction

; or

B)        sold a

Lottery ticket to a person under the age of 18 or permitted any person under

the age of 18 years to use a Lottery terminal or application.

3)         The

Director will assess a fine of no more than $5,000 if a licensee has violated

any provision established under this subsection (a).

b)         In the event the Director revokes or suspends a license

without notice and an opportunity for a prior hearing, the Director shall, by

service of appropriate notice pursuant to 11 Ill. Adm. Code 1700.30 and this

Part, afford the person whose license has been revoked an opportunity for a

hearing within 30 days after the revocation order has been issued.  As a result

of any such hearing, the Director may confirm the action revoking the license

or may order the restoration of the license

a prior hearing, the Director shall, by

service of appropriate notice pursuant to 11 Ill. Adm. Code 1700.30 and this

Part, afford the person whose license has been revoked an opportunity for a

hearing within 30 days after the revocation order has been issued.  As a result

of any such hearing, the Director may confirm the action revoking the license

or may order the restoration of the license.  In determining whether to confirm

the action revoking the license or order the restoration of the license, the Director

shall take the following factors into consideration, if applicable:

1)         The Agent's history of past offenses;

2)         Whether the Agent's course of conduct constituted a threat to

the safety of the Agent, Department officials, or others;

3)         Any evidence of the Agent's ignorance of a material fact that

led to his or her improper or unlawful conduct;

4)         The degree of cooperation with Department officials exhibited

by the Agent;

5)         The degree to which the Agent profited economically as a

result of the Agent's conduct;

6)         Any

other evidence offered and noted by the Administrative Law Judge as

demonstrating factors in mitigation or factors in aggravation of the relief

sought in the complaint.

c)         Upon revocation of the Agent's license, the Department will

arrange, and the Agent shall participate in, a meeting with the Department's

representative for the purpose of rendering the Agent's final Lottery

accounting. At that meeting, the Agent shall surrender the license, unsold

Lottery game tickets and other Lottery equipment and materials supplied to the Agent

by the Department or its vendors.

d)         Nothing in this Section shall be construed to prevent the

immediate revocation of the Agent's license upon the Agent's request and the

Department's approval, or upon the effective date of a transfer for which the

Department has received written documentation (see Section 1770.80).  The right

to a hearing shall not apply in these circumstances.