Louisiana Administrative Code › Title 42 - LOUISIANA GAMING › Part XV - Lottery › Chapter 5 - Retailer Regulations › Section XV-535 - Retailer Security

Current through Register Vol. 50, No. 6, June 20, 2024
A. The
				following rules shall apply to the retailer security, which §9053 of the
				Louisiana Lottery Corporation Law requires of retailers.
B. The security shall consist of a letter of
				credit or bond issued by a bank or surety company acceptable to the
				corporation. For purposes of this Section, the term "bond" shall include cash,
				cash-equivalent instruments or such other instruments as the corporation
				determines provide immediate liquidity.
C. The security may be in an amount of no
				greater than two times the retailer's average gross sales of lottery tickets
				for the period within which the retailer is required to remit sales proceeds to
				the corporation. The calculation of the security amount shall exclude the
				amount of lottery tickets for which the retailer has paid in advance.
D. The security under this Section shall
				constitute security for all obligations of the retailer to the corporation
				pursuant to these retailer regulations or the retailer's contract with the
				corporation. The obligations of retailers shall include, without limitation,
				the retailer's obligation to remit sales proceeds and unsold lottery tickets to
				the corporation. The corporation may enforce the security immediately upon a
				retailer's default in any such obligations for the full amount of the defaulted
				obligations up to the amount of the security, without affecting the
				corporation's right to any deficiency. Enforcement shall occur by drawing upon
				a letter of credit, request for payment under a bond or otherwise according to
				law.
E. In order to facilitate the
				acquisition of the required security by retailers, the corporation shall
				maintain the retailer security account, a special banking account for the
				pooling of retailer security and the acquisition of a letter of credit or bond
				as required by §9053 of the Louisiana Lottery Corporation Law. In lieu of
				posting security, a retailer having a security obligation may pay a
				non-refundable $10 fee to the corporation and the corporation shall deposit
				this fee into the retailer security account. Such fee may be increased or
				decreased by the corporation from time to time. Upon any default by any
				retailer, the corporation may pay such defaulted obligations, up to the amount
				of the security required of the retailer, from the letter of credit or bond
				secured by the retailer security account. Upon such payment, the retailer shall
				be obligated to reimburse the corporation for the full amount of such defaulted
				obligation and the corporation shall deposit the reimbursement into the
				retailer security account. At the end of each fiscal year, the president and
				the board may authorize inclusion of all or a portion of the unused amounts
				remaining in the retailer security account at the end of the fiscal year in the
				revenues of the corporation for the fiscal year.
F. The retailer's authority to sell lottery
				tickets shall be suspended for any period in which the retailer does not
				maintain the security required under this Section, but will be reinstated upon
				the reinstatement of the security. Failure to maintain adequate security shall
				be grounds for suspension or termination of a retailer contract and
				license.
AUTHORITY NOTE:
				  Promulgated in accordance with
				  R.S.
				  47:9001 et
				  seq.