Section 432.6. Conditions of licensing.

(1) Upon issuance of a license, the agent agrees that he or she shall do all of the following:

(a)   Be bound by and comply with the act, these rules, or instructions and directives of the commissioner or bureau.

(b)   Make tickets available for sale to the public during normal business hours.

(c)   Refrain from purchasing any winning ticket from its original purchaser or from subsequent purchasers.

(d)   Maintain authorized displays, notions, drop boxes, and other material used in conjunction with sales in accordance with instructions issued by the bureau.

(e)   Act in a fiduciary capacity with respect to all tickets accepted from the bureau or its authorized distributors until payment has been made.

(f)  Maintain current and accurate records of all operations in conjunction with sales in conformity with rules, instructions, and directives of the bureau. The agent shall make the records available to representatives of the bureau upon request for inspection and audit.

(g)   Ensure that a person under 18 years of age does not sell tickets or pay winning tickets.

(h)   Ensure that tickets will not be sold at any price greater than the price stated on the ticket.

(i)    Hold the bureau and the state harmless from any liability arising in connection with sales.

(j)   Remit funds due for lottery sales and other amounts owing to the bureau at the time and in the manner specified by the bureau.

(k)   Validate all winning tickets through the bureau gaming system and pay customers the full prize value of validated winning tickets up to the retailer’s cashing limit as determined by the commissioner.

(2) Subrule (1)(b) of this rule shall not apply to retailers who are considered “exempt from taxation” under Section 501(c) of the Internal Revenue Code, 26 U.S.C. §1 et seq.,

but only to the extent such retailers are restricted from making lottery sales to the general public as a condition of maintaining their status as “exempt from taxation.”

History: 1979 AC; 1998-2000 AACS; 2001 AACS; 2006 AACS; 2013 AACS.