New Jersey Administrative Code › Title 17 - TREASURY - GENERAL › Chapter 20 - RULES OF THE LOTTERY COMMISSION › Subchapter 12 - COURIER SERVICES › Section 17:20-12.4 - Courier service application review

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The Director may request additional
				information from the applicant after receipt of an application. An applicant
				for a courier service registration shall cooperate fully with the Division's
				requests in the course of the application process. Failure to cooperate with
				the Division shall be a violation of this section and shall be in itself
				sufficient grounds for denial of such application. In evaluating an application
				for a courier service registration, the Division shall consider the following
				factors, including, but not limited to:
1.
				Financial responsibility and security of the business or activity in which such
				person or business entity is engaged;
2. The sufficiency of the audit and financial
				controls, technical standards, and internal controls for the proposed courier
				service system, including the safeguarding of courier customer personal
				information, including credit cards, banking information, and other personal
				financial information, and the safeguarding of the system as a whole;
3. Business experience operating a courier
				service system;
4. Whether the
				application submitted contains a business plan demonstrating that compliance
				with all conditions of a courier service registration is achievable;
5. Criminal history background. All key
				personnel of courier service shall consent to disclosure of such information
				and to undergo such investigations as needed to substantiate their moral
				character and integrity. The criminal history background check of all key
				employees must be performed by the New Jersey Division of Gaming Enforcement
				and will be at the expense of the courier service applicant;
6. Credit reporting;
7. Sufficiency of existing lottery sales
				agents and courier service registrations to serve the public
				convenience;
8. Volume of expected
				sales;
9. Disclosure of any
				previous application for agent licensure or courier service registration with
				the New Jersey Lottery and/or any other state or international lottery.
				Disclosure of any courier service business or similar business conducted by the
				courier service applicant, or any entity controlling, controlled by, or under
				common control with the applicant, and any license, permit, or other
				authorization related thereto;
10.
				Veracity and completeness of information supplied on the application form or
				any supplement thereto;
11.
				Reputation of the applicant and verification of references including review of
				licensure/registration by other lotteries worldwide;
12. All officers, shareholders, and/or
				partners, including limited partners, holding a 10 percent or more ownership
				interest shall be disclosed and listed with the percentage of shares owned by
				each. In addition, any shareholder under the age of 21 that holds a 10 percent
				or more ownership interest shall also be disclosed and listed with the
				percentage of shares owned by each such owner. The corporate identification
				number and Federal identification number including all New Jersey Division of
				Taxation assigned suffixes shall also be noted. Failure to disclose the above
				information shall be cause for denial of a New Jersey Lottery registration
				under N.J.A.C.
				17:20-5.1(a);
13. A courier service applicant shall submit
				a disengagement plan in the event that a courier service ceases operations in
				New Jersey for any reason, including bankruptcy. A disengagement plan should
				discuss, in sufficient detail, the following: full reimbursement of courier
				customers, including all winnings, delivery of winning tickets, protection of
				courier customer's personal information, disposition of tickets in storage, and
				all other related termination activities;
14. A courier service applicant shall
				describe, in sufficient detail, its process to securely deliver tickets to
				courier customers and the time frame for delivering tickets to courier
				customers. See N.J.A.C. 17:20-12.17(b);
15. A courier service applicant shall provide
				the name, address, and copy of written contractual relationship for each of its
				prospective affiliate agents. See N.J.A.C. 17:20-12.10(a)1;
16. A courier service applicant shall
				describe, in sufficient detail, how it will facilitate the requirement of the
				Courier Service Act that courier customers have the option at all times to
				obtain their ticket(s). See N.J.A.C. 17:20-12.15(d);
17. A courier service applicant shall
				describe, in sufficient detail, its internal controls. See N.J.A.C.
				17:20-12.13;
18. A courier service
				applicant that is a business entity shall provide copies of all incorporation
				charters or other formation documents and copies of its bylaws or other
				procedures concerning its business entity governance; and
19. A courier service applicant shall
				describe, in sufficient detail, its responsible gambling/responsible play plan,
				including a description of related experience.