§ 42-61-5. Sales agents. (a) For the purpose of this chapter, the term "person" shall be construed to mean and include an individual, association, partnership, corporation, trust, estate, company, receiver, trustee, referee, or other person acting in a fiduciary or representative capacity, whether appointed by a court or otherwise, and any combination of individuals. "Person" shall be construed to mean all departments, committees, commissions, agencies, and instrumentalities of the state, including counties and municipalities and agencies and instrumentalities of the state.

(b)(1) The director of lotteries may license any person as a lottery sales agent as provided in this chapter. No license shall be issued to any person to engage in the sale of lottery tickets as his or her sole occupation or business.

(2) As part of its investigation as to whether to issue a lottery sales agent license, the Rhode Island lottery shall require criminal background checks of the applicant for a retail sales agent license as it deems appropriate and said individuals shall apply to the bureau of criminal investigation of the Rhode Island state police or the Rhode Island department of the attorney general for a national criminal records check with fingerprinting. The applicant whose criminal records check is being conducted shall be responsible for the payment of the costs of said criminal records check. The Rhode Island state police or the Rhode Island department of attorney general, as applicable, shall send the results of such criminal records check to the Rhode Island lottery. Once said results are sent to and received by the Rhode Island lottery, the Rhode Island state police and the Rhode Island department of attorney general shall promptly destroy said fingerprint record(s). On or before February 1, 2011, the agency shall adopt rules and regulations establishing criteria to be used in determining whether based upon a criminal records check an application will be approved.

(c) Before issuing any license to a lottery sales agent the director shall consider:

(1) The financial responsibility and security of the person and his or her business or activity;

(2) The accessibility of his or her place of business or activity to the public;

(3) The sufficiency of existing licensed agents to serve the public interest;

(4) The volume of expected sales by the applicant;

(5) Any other factors pertaining to the public interest, convenience or trust.

(d) The director shall refuse to grant or shall suspend, pending a hearing before the division, or recommend a revocation of a license if the applicant or licensee:

(1) Has been convicted of a felony, or any crime involving moral turpitude;

(2) Has been engaging in gambling as a significant source of income;

(3) Has been convicted of violating any gambling statutes;

(4) Has been convicted of fraud or misrepresentation in any connection;

(5) Has been found to have violated any rule, regulation, or order of the state lottery division.

The license of an agent shall be suspended by the director for any charge which may result in a conviction for conduct prescribed in subdivisions (d)(1) - (d)(5); which suspension shall be effective until a final judicial determination.

(e) The director shall refuse to grant, or shall suspend, pending a hearing before the division, or recommend revocation of a license if the applicant or licensee is a corporation:

(1) Any of whose directors, officers, or controlling shareholders have been found guilty of any of the activities specified in subsection (d);

(2) In which it appears to the director of lotteries that due to the experience, character, or general fitness of any director, officer, or controlling shareholder, the granting of a license as a lottery sales agent would be inconsistent with the public interest, convenience, or trust;

(3) Not the owner or lessee of the business at which it will conduct a lottery sales agency pursuant to the license applied for, or that any person, firm, association, or corporation other than the applicant shares or will share in the profits of the applicant, other than receiving dividends as a shareholder, or will participate in the management of the affairs of the applicant.

(f) Every holder of a license as a lottery sales agent shall renew the license annually pursuant to the rules and regulations of the division. Licensees shall pay to the division a fee to be determined by the director upon receipt or renewal of a license.

(g) Whenever requested by the director, the division of criminal identification of the department of the attorney general, the superintendent of state police, any superintendent or chief of police or sergeant of any city or town, shall furnish all information on convictions, arrests and present investigations concerning any person who is an applicant for a license or who is a licensee of the state lottery.

(h) Notwithstanding any other provision of law, any person licensed as provided in this chapter is authorized and empowered to act as a lottery sales agent.

(i) Every licensed sales agent authorized pursuant to this section and every licensed, video-lottery retailer authorized by chapter 61.2 of this title shall keep conspicuously posted on his or her premises the name and telephone number of a council on problem gambling recognized by an appropriate authority within state government or within the professional field of addiction disorders and a statement of its availability to offer assistance. The lottery division shall supply each licensee with the required notice.

History of Section. (P.L. 1974, ch. 20, § 1; P.L. 1988, ch. 530, § 1; P.L. 1988, ch. 562, § 1; P.L. 1994, ch. 383, § 1; P.L. 2005, ch. 234, § 1; P.L. 2005, ch. 236, § 1; P.L. 2010, ch. 252, § 3.)