N.J. Admin. Code § 17:20-5.1

Current through Register Vol. 56, No. 11, June 3, 2024

Section 17:20-5.1 - Reasons for denial, revocation, suspension, renewal rejection, or imposition of civil penalties

(a) In the discretion of the Director, an agent application or courier registration may be denied, or an agent license or courier registration suspended, revoked, or its renewal rejected for any one or more of the following reasons:

1. Whenever the application for an agent license or renewal thereof, or a courier service registration or renewal thereof, contains knowingly false or misleading information or is incomplete or whenever an agent or courier service fails to complete and submit the license or registration renewal application form within the specified time requested;

2. Whenever the agent or courier service violates or fails to perform in accordance with any of the provisions of the Act or these rules and regulations or the general operational procedures of the Lottery;

3. Whenever a person:

i. Has been indicted, arrested for, or convicted of a crime, disorderly persons offense, or violation of ordinance or administrative regulation relating adversely to the duties of a lottery agent, courier service, or as an incident to obtaining or attempting to obtain a Lottery license or courier service registration; or

ii. Has been the subject of a verified complaint or accusation for such offense; or

iii. Has failed to notify the Director in writing within five days of any of the above actions.

4. Whenever an agent or courier service engages in conduct detrimental to a sound business relationship between the agent and the Lottery or the courier service and the Lottery;

5. Whenever it is determined that such action would be in the best interest of the Lottery based on actions that reflect upon the agent's or courier service's moral character or affect the integrity of the Lottery;

6. Whenever an agent applicant or courier service applicant does not, or an agent or courier service can no longer, satisfy the criteria set forth in N.J.S.A. 5:9-11 or this chapter for the issuance of a license or registration;

7. Whenever ownership of the agent or courier service has been changed without the Director's approval;

8. Whenever an agent or courier service fails to report any change in status, control, address, or other data relevant to licensure within 10 days of occurrence;

9. Whenever the agent or courier service fails to meet minimum sales quotas set by the Director;

10. Whenever the agent or courier service fails to make prompt and timely payment of a civil penalty imposed under N.J.A.C. 17:20-9;

11. Whenever it is determined that an agent or courier service has discounted a prize associated with a winning ticket resulting in a reduced prize payment to the holder of a winning ticket of less than the actual prize or prize share value;

12. Whenever an agent or courier service has violated the Federal Organized Crime Control Act of 1970, or committed the crime of embezzlement, theft, forgery, bribery, falsification or destruction of records, perjury, false swearing, receiving stolen property, obstruction of justice, or any other offense indicating a lack of business integrity or honesty or committed an act of moral turpitude;

13. Whenever an agent or courier service has violated the Federal or State antitrust statutes or the Federal Anti-Kickback Act ( 18 U.S.C. § 874, 40 U.S.C. § 276b, c);

14. Whenever an agent or courier service has violated any laws governing the conduct of elections of the Federal government, State of New Jersey or of its political subdivisions, or any other state;

15. Whenever an agent or courier service has violated any laws governing the conduct of occupations or professions or regulated industries;

16. Whenever an agent or courier service has violated any laws, ordinances, regulations of the Federal government, State of New Jersey, its political subdivisions, or any other state that may bear upon a lack of fiscal responsibility or moral integrity;

17. Whenever an agent or courier service has made any offer or agreement to pay or has made payment either directly or indirectly, any fee, commission, compensation, gift, gratuity, or other thing of value of any kind to any State officer or employee as defined by the New Jersey Conflicts of Interest Law (N.J.S.A. 52:13D-13b and c) in the Department of Treasury or any other agency with which such an agent transacts and offers or proposes to transact business, or to any member of the immediate family as defined by the New Jersey Conflicts of Interest Law (N.J.S.A. 52:13D-13i) of any such officer or employee, or any partnership, firm, or corporation with which they are employed or associated, or in which such officer or employee has an interest within the meaning of the New Jersey Conflicts of Interest Law (N.J.S.A. 52:13D-13.g) under circumstances from which it might reasonably be inferred that such offer, agreement, or payment was made for the purpose of influencing the recipient as to the discharge of official duties regarding the agent by the recipient or by any person affiliated with the recipient within the meaning of the New Jersey Conflicts of Interest Law (N.J.S.A. 52:13D-13b, 13c, or 13d);

18. Whenever any agent or courier service has influenced or attempted to influence or caused to be influenced, any State officer or employee or special State officer or employee in his or her official capacity in any manner that might tend to impair the objectivity or independence of judgment of said officer or employee;

19. Whenever any agent or courier service has caused or influenced or attempted to cause or influence any State officer or employee or special State officer or employee to use, or attempt to use, his or her official position to secure unwarranted privileges or advantages for the agent or any other person;

20. Whenever it is determined that an agent has intentionally removed or defaced any portion of an instant scratch off ticket latex overlay coating for the purpose of compromising the outcome of the ticket;

21. Whenever a courier service alters a courier customer's order for ticket purchases without the courier customer's authorization; or

22. Whenever a courier service alters a courier customer's personal information contained in their account without the courier customer's authorization.

(b) The Director may summarily suspend an agent license or courier service registration for up to five consecutive days without prior notice if such suspension is deemed imminently necessary:

1. To prevent a breach of security;

2. In the event of the misuse of a lottery machine or other lottery equipment;

3. To protect the Lottery from economic harm; or

4. Whenever any activity, policy, or conduct of an agent or courier service presents a serious or imminent hazard to the health, safety, and well-being of the public or whenever any activity, policy, or conduct presents a threat to the integrity or business operations of the State Lottery.

(c) Notices of summary suspension, including the reasons there for, shall be given to agents or courier services as promptly as possible and by means deemed most effective by the Director.

(d) The following conditions shall apply to any licensing or registration action including the suspension, non-renewal, or revocation of a lottery agent license or courier service registration or the rejection of an application there for:

1. The existence of any of the causes set forth in (a) above shall not necessarily require the Director to take license or registration action. In each instance, the decision to take licensing or registration action shall be made within the discretion of the Director in the best interest of the State;

2. All mitigating factors shall be considered in determining the seriousness of the offense, failure, or inadequacy of performance in deciding whether licensing or registration action is warranted;

3. Any licensing or registration action shall be taken in accordance with the provisions of the Administrative Procedure Act, N.J.S.A. 52:14B-1et seq., and the Uniform Administrative Procedure Rules, N.J.A.C. 1:1. Any action to summarily suspend a license shall be given immediate effect.

(e) In addition to an action to suspend, revoke, or not renew a license or registration or to reject an application of an agent or courier service for violations of this section, the Director may take any other action permitted by law, including action to impose civil penalties pursuant to N.J.A.C. 17:20-9.

N.J. Admin. Code § 17:20-5.1

Amended by 50 N.J.R. 1826(b), effective 8/6/2018