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THE DISTRICT OF COLUMBIA
LOTTERY AND CHARITABLE GAMES CONTROL BOARD
NOTICE OF PROPOSED RULEMAKING
The Executive Director of the District of Columbia Lottery and Charitable Games Control Board, pursuant to the authority set forth in D.C. Official Code § 3-1306, District of Columbia Financial Responsibility and Management Assistance Authority Order issued September 21, 1996, and Office of the Chief Financial Officer Financial Management Control Order No. 96-22 issued November 18, 1996, hereby gives notice of the adoption of amendments to Chapters 2 and 3 of Title 30 DCMR, “Lottery and Charitable Games.” These amendments are necessary to implement various changes in the licensing and commission schedules of Agency Agents. The Executive Director gives notice of his intent to take final rulemaking action to adopt the amendments in not less than thirty (30) days from the date of publication of this notice in the D.C. Register.
Chapter 2, “LOTTERY LICENSES,” of Title 30, of the DCMR is amended as follows:
Section 207, SPECIAL EVENT LICENSES,” is repealed and replaced with:
207 OTHER LOTTERY LICENSES
207.1 In addition to the normal agency license as provided for in this Title, the agency may offer different variations of lottery licenses that are listed below. Note all licensees must adhere to all laws, rules and regulations of the Agency, with the exceptions noted below.
207.2 Special Event Licenses
(a) The Agency may license Agents for Special Events located in the District of Columbia for the purpose of selling lottery tickets at special events that are open to the public. For purposes of this section the term "Special Events" includes festivals and other special events so designated by the Agency.
(b) Agents licensed to sell lottery tickets at one (1) or more locations may apply for permission to sell lottery tickets at special events on a form provided by the Agency. A separate license shall be issued for each special event indicating the time, place, duration and manner of the sale of lottery tickets at that special event.
(c) License for the sale of tickets at a special event may include more than one (1) location at that event.
(d) Before a license is issued for the sale of lottery tickets at a special event, the agent shall submit a plan for approval by the Agency to protect the integrity and security of the Agency's games, property and records during the special event and obtain any other licenses required by the District.
(e) Special events licenses shall be issued only to agents who have obtained all other licenses required by the District to operate a lawful establishment including licenses required for the special event.
207.3 Corporate Client License
(a) The Executive Director may establish a separate commission schedule for agents that are corporate clients whose stores that are located in the District of Columbia and are also lottery Agents.
207.4 Player Activated Terminal License
(a) Nothing in these rules shall be construed to prohibit an applicant who meets the requirements of section 201, “Eligibility Requirements,” 202. “Application For Original and Renewal Licenses,” and 203, Evaluation of Application for License and Assignment of On-Line Computer Terminal” of these rules from being licensed to sell lottery tickets as a Player Activated Terminal (PAT) only licensed agent.
(b) An agent who sells lottery tickets as a Player Activated Terminal (PAT) only licensed agent shall operate in accordance with subsection 301.1 and 308 Agent Responsibilities of these rules.
(c) Nothing in these rules shall be construed to prohibit an agent operating as a Player Activated Terminal (PAT) only agent from selling lottery tickets by means of Instant Ticket Vending Machines (ITVM).
207.5 Remote Location License
(a) An agent may be licensed to sell lottery tickets at a remote location that may be separate from their actual business and that the remote location satisfies the requirements of subsection 201.2 of this Title.
207.6 Agent Plus License
(a) The Executive Director may license Agents to also be an Agents Plus. An Agent Plus may validate and cash winning lottery tickets above the normal five hundred ninety-nine dollars and ninety-nine cent ($599.99) D.C. Lottery Agent limit. An Agent Plus may validate and cash winning lottery tickets up to Five Thousand Dollars ($5,000.00).
(b) An Agent Plus must refer prizes above $5,000 to the D.C. Lottery Claims Center for validation and claiming of the prize.
(c) An Agent Plus assumes all responsibilities associated with cashing and handling of lottery tickets. The D.C. Lottery and Charitable Games Control Board, nor the District of Columbia Government assumes any liability for Agent’s being an Agent Plus.
(d) For claims in excess of six hundred ($600.00) or more, an Agent Plus must obtain and verify the winner’s Social Security Number (SSN). It is the Agent Plus’ responsibility to verify and confirm the winner’s accurate SSN and identification.
(e) All Agent Plus must visually check that each ticket is signed by the ticket owner and matches the name on the claim form before cashing the ticket.
(f) An Agent Plus must obtain two (2) valid and current identifications of the winner and indicate the types of identification presented from the winner’s submitted claim form. The two forms of identification include a primary: government issued photo I.D. such as State license (driver, etc.), Military identification, Passport, and other government photographic (i.e., work I.D.) And a secondary identification which includes: Social Security Card, Insurance Card/Medicaid/Medicare, Major Credit Card and or Government Photographic I.D. One of the I.D.’s presented must include an accurate Social Security Number (SSN). The preferred forms of acceptable identification are a valid driver's license with current address and a Social Security Card.
(g) An Agent Plus must promptly submit claim forms to the Agency weekly. Failure of the Agent Plus to submit claim forms to the Agency may result in loss of commission and/or an adjustment to agent’s weekly invoice.
(h) An Agent Plus shall not process any claim in which the winner’s prize payment is subject to any tax, child support or any other withholdings subject to attachment for funds owed to the District as provided by section 612 of this Title.
(i) An Agent Plus will not be paid a cashing fee /commission for tickets directed to D.C. Lottery Claim Center.
(j) Agents Plus may pay at least six hundred ($600.00) of the validated claim in cash, and may pay the balance with cash, a business check, and/or money order. The Agent Plus will make a copy of the check issued to the winner and attach it to the claim form.
(k) If an Agent Plus issues the winner a check or money order for the prize and the winner seeks to have the Agent Plus cash the check, the Agent Plus shall not charge a fee for writing or cashing either a check or money order.
(l) In the event that an Agent Plus issues a check or money order which is dishonored for any reason, the Agent Plus is responsible for any fees and penalties assessed for the recovery of all monies due. If an Agent Plus is a Corporation, Limited Liability Company, or Partnership the persons associated with the business entity, shall be personally liable to the Agency for all fees and penalties.
(m) All information obtained from the winner is confidential, and must be carefully safeguarded by an Agent Plus. An Agent Plus must retain a copy of the claim form in a secure location and keep a copy of the claim form for at least two (2) months from the date of the claim.
(n) An Agent Plus may receive three percent (3%) for cashing winning on-line tickets and four percent (4%) for cashing winning scratch tickets based on a properly validated and cashed ticket which meets all the requirements and all required paperwork has been timely submitted the Agency.
(o) The Agency may impose penalties and fees upon the Agent Plus for failure to obtain or safeguard required information. Additionally, any fees or penalties imposed upon the Agency by Federal or D.C. Office of Tax and Revenue or any other institution may also be assessed to the Agent if arising out of the Agent’s actions or omissions.
(p) The Agency may impose service charges, fines and penalties upon the Agent Plus, if a payment issued to a winner by the Agent is dishonored for any reason, non-negotiable or drawn upon insufficient funds, or if the Agent Plus fails to keep accurate financial records. The service charges, fines and penalties assessed by the Agency under this section shall not be less than the costs associated with the Agent Plus’ violation of any applicable law or regulation.
(q) Although an Agent Plus may be paid commission prior to receipt of associated paperwork, the D.C. Lottery has the right to deduct any commission paid if the Agent fails to submit required documentation.
(r) An Agent Plus is responsible for having sufficient funds available to pay all validated prizes. The D.C. Lottery will not advance mid-week reimbursements to Agents for validations.
(s) An Agent Plus shall act as a fiduciary to the Agency maintaining a separate bank account for the purpose of participating in the Agent Plus Program.
(t) Agent participation as an Agent Plus Program requires that they stay in good financial standing and not to incur a non-sufficient-fund (NSF). If the NSF is invalid due to bank error, then a letter from the bank is required. If the NSF is invalid due to other mitigating circumstances then the Executive Director of the Agency may grant an exception upon written explanation.
(u) An Agent Plus must make processed claim forms available for submission to the D.C. Lottery weekly.
(v) All Agent Plus claim records shall be subject to inspection and audit by the Agency and agrees to permit representatives of the Agency to conduct on-site inspections for the proposes conducting audits and inspection of lottery equipment, during the agent’s normal hours of operation.
(w) An Agent Plus will be subject to fines, penalties up to license revocation by the D.C. Lottery for any failure to comply with all applicable laws, regulations, rules and procedures.
(x) Change of ownership voids an Agent Plus License.
(y) Any assessment of fines, penalties, or other charges shall be made by the Executive Director. Agent’s participation in Agent Plus program is voluntary and at the sole discretion of the D.C. Lottery. An Agent Plus agrees that such participation in the program is subject to periodic review of sales and cashing and may be terminated at any time by the D.C. Lottery. All decisions regarding program participation are at the discretion of the Agency’s Executive Director; with licensees having the right to appeal.
Chapter 3, “AGENT REQUIREMENTS” of Title 30 of the DCMR is amended as follows:
Section 303, “AGENT REQUIREMENTS,” is amended to read as follows:
303 AGENT COMPENSATION
303.1 The Board shall establish agents’ commissions for the sale of tickets and payment of prizes for each game in advance of the sale of tickets for the game. Nothing in this title shall preclude the Board from changing the agents’ commissions.
303.2 For purposes of subsection 303.1, the term “each game” means a particular instant game or a particular on-line game.
303.3 The Executive Director may establish a separate commission schedule for agents that are corporate clients whose stores are located and the District.
303.4 Lottery licenses granted pursuant to section 207 must adhere to all applicable laws and regulations for D.C. Lottery agents except as denoted in subsection 207.1 of this Title.
All persons desiring to comment on the subject matter of this proposed rulemaking should file comments in writing no later than thirty (30) days from the date of publication of this notice in the D.C. Register. Comments should be filed with the Executive Director, District of Columbia Lottery and Charitable Games Control Board, 2101 Martin Luther King, Jr., Avenue, S.E. Washington, D.C. 20020. Copies of these proposed rules may be obtained from the address stated above.
