53ER19-23. Change in Retailer Condition or Retailer Ownership

(1) Change in Retailer Condition.

A retailer or any person listed on the retailer’s application or renewal application shall report to the Lottery any of the below-listed adverse events during the term of the retailer’s contract:

(a) Arrest or conviction of, or entry of a plea of guilty or nolo contendere, regardless of adjudication, to an offense punishable as a felony or an offense involving dishonesty or gambling;

(b) Incurrence of a tax delinquency with the federal government or any taxing authority within the State of Florida; or

(c) Commencement of a voluntary or involuntary bankruptcy case.

Notification shall be made in writing within fifteen days of the occurrence of the events listed in paragraphs (1)(a) and (b), above. Notification for commencement of a bankruptcy case shall be made immediately. Notification should first be sent via email to Florida Lottery [e-mail] followed by a letter of notification sent to Florida Lottery, Retailer Contracting, 250 Marriott Drive, Tallahassee, Florida 32399-6573.

(2) Change in Retailer Ownership.

(a) No Certificate of Authority or retailer contract is assignable or transferable between persons or locations. To avoid an interruption or termination of lottery ticket sales, any change in ownership of a retailer’s place of business shall be preceded by the filing and approval of a Retailer Application as provided in accordance with rules of the Florida Lottery governing retailer applications, and the issuance of a new Certificate of Authority. A copy of the current rule governing retailer applications can be obtained from the Florida Lottery’s website at flalottery.com or from the Florida Lottery’s retailer website at retailerwizard.flalottery.com.

(b) Any of the following will be considered a change of ownership:

1. Sale of the business;

2. Change in the form of ownership of the business;

3. Change of general partners in a limited or general partnership; or

4. Death of a sole proprietor.

(c) A retailer shall notify the Lottery immediately of the occurrence or pending occurrence of any of the change of ownership conditions listed in the preceding subparagraphs.

(d) A retailer that is a corporation or limited liability company shall immediately notify the Lottery of any change of officers or directors, managing members, and transfers of 10 percent or more of its corporate stock.

Notification shall be given by filing a retailer application and following the procedures set out in accordance with rules of the Florida Lottery governing retailer applications. If as a result of its investigation, the Lottery determines that any new officer, director, managing member or shareholder of 10 percent or more of the corporate stock would have caused the initial retailer application to be denied, the retailer will be given an opportunity to sever its relationship with the officer, director, managing member, or shareholder. If the retailer does not sever the relationship, the Lottery shall terminate the retailer contract. A non-refundable background investigation fee of $25 per person investigated shall accompany the notice of change by the retailer.

(3) The effective date of this emergency rule is April 15, 2019.

(4) This emergency rule replaces Emergency Rule 53ER17-44, F.A.C.

Rulemaking Authority 24.109(1), 24.112(1) FS. Law Implemented 24.112 FS. History–New 4-15-19, Replaces 53ER17-44.