(1) A change in ownership of a retailerís business:
(a) Automatically voids the existing retailer license; and
(b) Requires an application for a new license.
(2) If a retailer is a corporation, partnership, or LLC, a transfer of ownership includes a:
(c) Share exchange of a majority of stock;
(d) Transfer of a majority of assets or transfer of stock of the majority shareholder; and
(e) Transfer of a majority partner's interest, or transfer of memberís or principalís interest.
(3) A transfer of interest to a spouse currently identified as an owner on the retailerís license by gift or through operation of law is not a transfer of ownership.
(4) A retailer who transfers ownership remains responsible for all tickets and lottery sales up to the date of final accounting.
(5) A retailer shall pay all outstanding funds due to the Agency upon change of ownership.
(6) The purchaser of a business where a lottery terminal is installed shall apply for continuation of the existing license at least 30 days before the transfer of ownership.
B. Approval Process for Change of Ownership.
(1) The Director shall:
(a) Require that a new application for a lottery retailer license be completed when a retailer notifies the Agency of a change in ownership; and
(b) Review the existing location and the applications on file for that trading area.
(2) If the application of the proposed new owner meets all lottery requirements to become a licensed retailer, preference will be given to retaining the license at the existing location.
(3) The Director may reasonably determine that circumstances and conditions exist that do not warrant the approval of a license at that location.
(4) The Director's decision to approve or deny the application of the proposed new owner at the existing location shall be in writing and state the reasons for the decision.
(5) The decision to deny the application of the proposed new owner shall:
(a) Be treated in the same manner as a denial of an application for a retailer license; and
(b) Create the same rights of review and appeal as the denial of an application for a retailer license.