Illinois Administrative Code › Title 11 - ALCOHOL, HORSE RACING, LOTTERY, AND VIDEO GAMING › Part 1770 - LOTTERY (GENERAL) › Section 1770.90 - Delinquent Financial Obligations

Current through Register Vol. 48, No. 28, July 12, 2024
a) It is the obligation of each Agent to
			 remain current on the Agent's financial obligations to the Department. Lottery
			 accounts are due and owing, in full, each Wednesday, unless the Agent has been
			 notified by the Department of an alternate settlement day due to a bank holiday
			 or other business disruption. Accounts not settled on the designated settlement
			 day shall be deemed delinquent.
b)
			 The Department will apply sanctions with respect to delinquent Agent accounts,
			 according to the following schedule of sanctions:
1) First delinquency: In the event an Agent
			 is delinquent in settlement of that Agent's Lottery account, and the
			 delinquency is the first within the past 30 days, including the month of
			 delinquency, the Agent will transfer the funds to the Department's account by
			 4:00 p.m. the next business day, if the delinquency was reported before noon
			 (12:00 p.m.), or by 10:00 a.m. the second business day if the delinquency was
			 reported after noon. If the delinquent settlement amount is paid by the
			 extended settlement deadline, the Agent will be charged with one delinquency
			 but will receive no further sanction. However, if the settlement amount is not
			 paid by the extended settlement deadline, the delinquent Agent's terminal and
			 any related terminals will be immediately deactivated and the account will be
			 referred to the Lottery's accounts receivable staff. The terminal or related
			 terminals will not be reactivated until the follow-up report is received and
			 reviewed by the Department's Chief Financial Officer or designee;
2) Second delinquency: In the event an Agent
			 is delinquent in settlement of that Agent's Lottery account, and the
			 delinquency is the second one in the past 90 days, including the month of the
			 delinquency, the delinquent Agent's terminal or related terminals will be
			 immediately deactivated and the Agent will be charged with a second
			 delinquency. When the delinquent settlement amount is deposited to an account
			 at a branch of the Department's chosen bank or wire transferred to the
			 Department's account, the terminal or related terminals will be reactivated
			 unless the second incident is within one month after the first, or the payment
			 was made after the extended payment deadline. If this occurs, the terminal and
			 any related terminals will be reactivated only after review and approval by the
			 Department's Chief Financial Officer or designee. In determining whether to
			 reactivate a terminal or related terminals, Department staff may consider the
			 Agent's prior history, general financial status as disclosed by a current
			 credit report, ability to provide a security deposit, letter of credit or bond
			 to protect against future delinquencies, and other relevant financial and
			 administrative information as may be available to or requested by the
			 Department;
3) Third delinquency:
			 In the event an Agent is delinquent in settlement of that Agent's Lottery
			 account or any extended payment deadline, and the delinquency is the third one
			 in the past 12 months, including the month of the delinquency, the delinquent
			 Agent's terminal and any related terminals will be immediately deactivated and
			 the Agent will be charged with a third and final delinquency, at which point
			 the Department will revoke an Agent's license.