(A) A retail contract executed by the commission pursuant to this chapter must specify the reasons for which the contract may be canceled, suspended, revoked, or terminated by the commission including, but not be limited to:

(1) a violation of this chapter, a regulation, or a policy or procedure of the commission;

(2) failure to account accurately or timely for lottery game tickets, lottery games, revenues, or prizes as required by the commission;

(3) fraud, deceit, or misrepresentation;

(4) insufficient sales;

(5) conduct prejudicial to public confidence in the lottery;

(6) filing for or placement in bankruptcy or receivership of the lottery retailer;

(7) a material change, as determined in the sole discretion of the commission, in a matter considered material by the commission in executing the contract with the lottery retailer; or

(8) failure to meet any of the objective criteria established by the commission pursuant to this chapter.

(B) If cancellation, denial, revocation, suspension, or rejection of renewal of a lottery retailer contract is in the best interest of the lottery, the public welfare, or the State of South Carolina, the executive director or his designee, in his discretion, may cancel, suspend, revoke, or terminate, after notice and a right to a hearing, a contract issued pursuant to this chapter. A hearing must be held within sixty days of notice of cancellation, suspension, revocation, or termination and conducted by the executive director or his designee. A party to the contract aggrieved by the decision of the executive director or his designee may appeal the adverse decision to the board, and then to the Administrative Law Court, pursuant to the Administrative Procedures Act.

(C) If a party files an action to appeal the final decision of the board pursuant to subsection (B) and seeks to enjoin the implementation, termination, or performance of a contract, he must post a bond payable to the State in an amount determined by the trier of fact to be sufficient to compensate the State for its losses including, but not limited to, reasonable attorney's fees and court costs resulting from the delay, if the party does not prevail in its appeal.

HISTORY: 2001 Act No. 59, Section 2.

Code Commissioner's Note

At the direction of the Code Commissioner, "Administrative Law Court" was substituted for all references to "Administrative Law Judge Division", pursuant to 2004 Act No. 202, Section 3.