HomeMy WebLinkAbout2022-4093CONTRACT #2022-4093
` Retailer Number
269225
MINNESOTA
LOTTERY
MINNESOTA STATE LOTTERY
RETAILER CONTRACT
THIS AGREEMENT is entered into this'-.15t" day of March 2022, by and between
the MINNESOTA STATE LOTTERY (hereinafter referred to as .the "MSL" or the "Lottery") and,
TOP VALU LIQUOR a Corporation whose business address is
2105 37TH AVE NE COLUMBIA HEIGHTS MN 55421 (hereinafter referred to
as the "Retailer"),
In .signing this agreement, the parties acknowledge that they have read and understood the
terms of this Contract and agree to be bound thereby.
THE MINNESOTA STATE LOTTERY TOP VALU. LIQUOR
04'. <�Z4
By: By.
Lottery Signature i2�tailer Signature
Title: Lottery Director.
Date: March 15, 2022
1. Definitions
FY2n22
Title; City M'anage.r
Date:
a. "Accounting Week" - The start of business on Tuesday through the end of business -on the subsequent
Monday,
b, "Business Location" " The. site, as described by the address stated in this Contract, where the Retailer is
authorized to sell Lottery Tickets.
C. 'eContract" — This agreement between the, Retailer and the MSL authorizing the Retailer to sell Lottery
Tickets.
d. ''Director" = The'Director of the Minnesota State Lottery or the Director's designee.
e. "Lottery Games" - Lotto Games and Scratch Games.
f. "Lottery Tickets" - Lotto Game Tickets and Scratch Game Tickets.
g. "MSL" - The Minnesota Lottery;
h. "Lotto Game" - A lottery game sold to the public through the use of a Lotto Game Terminal.
1. "Lotto Game Terminal' - A terminal installed by the MSL at the Retailer's Business Location that is
connected to a MSL system for the putpose:af selling and redeeming Lofto Game Tickets and Scratch
Game Tickets.
j "Lotto Game Ticket" - A ticket purchased for participation in a Lotto -Game.
k. "Retailer" - The business-authcrized by the MSL to sell Lottery Tickets.
1. "Scratch Game" - A lottery game sold to the public on pre=printed tickets containing play data under a latex,
coating.
m. "Scratch Game Ticket" - A pre-printed ticket purchased for participation in a Scratch Garde.
2. Scrape of the Contraot; Terra
This Contract authorizes the Retailer to sell Lottery Tickets for the MSL according'to the terms. of this- Contract.
The Retailer agrees to Dilly -sell Lottery Tickets at the Retailer's Business Location. This Contract is subject to
the terns and provlsiorts, ,af Mihnesota Statutes, chapter 349A, Minnesota Pule's, chapter 7856, and the: game
procedures adopted by the Director for each Lottery Game and the Retailer agrees'to comply and be bound byany applicable law, rule, instruction and order. issued by the Lottery. This Contract is effective on the date ft:ls
finallye�cecuted by both. parties and shall remain in effect for one,year, from larch 15, 2-022 until mi.dnight
on 14, ,2023 unless canceleb'or.suspended by'either party. This Contract Is not assignable or
transferable to any person or entity, nor is it trartsferable'to any location. The Retailer shall not conduct any
business or hold Itself out as a Lottery Retailer unless a renewal Contract has been tirraely granted..
3. Sale and Redemption of Lottery Tickets
a. The Retailer must. offer for sale all Ldtto Games offered by the MSL and must offer for sale a minimum
number of Scratch Games set by the MSL,
b'. The. Retailer may not sell Lottery Tickets to any person under the age of 1$ years or redeem a prize for a
person under'the age -of 15 years.
c. The Retailer Must prominently display the rrost current odds posters for Lottery Games supplied by the
1VISL,
d. The Retailer must display the problem, gambling helpiine sticker supplied by the MSL at or near the. point
where Lottery Tickets are sold.
e. The Retailer must display at its Business Location, the certificate to sell Lottery Tickets Issued by the MSL.
f, The Retailer must mount a decal provided by -the N4SL in a prominent place near the entrance to its
Business LDcatton,
g. The Retailer midst sell Lottery Tickets only for coin,, currency, money Orders, debiticheck cards or.checks.
h. The Retailer must only sell Lottery T ickets ata pr6 set by the Director pursuant to the game procedures
adopted for each Lottery Game.
i. The Retailer must not condition the sale of Lottery Tickets on the purchase of any other item or service or
impose any similar restriction upon the sale -of -a Lottery Ticket,
j. The Retailer must make the purchase -of Lottery Tickets convenient an& readily accessible to the public
.and crake Lottery Tickets available for purchase during normal business hours.
k: The Retailer-; nusi begin the sale of Scratch Game. Tickets on the date set by the MSL for:each. Scratch
Game and must cease- selling Scratch Game Tickets for a particular Scratch Game -on -the. date set by the
MSL.
I: The Retailer must validate and pay all prizes fram winning Lottery Tickets up to $500, consistent with the.
Retailer`s normal business hours and cash on hand policies or as agreed to between the MSL and the
Retailer. The Retailer may be responsible for redeemmed Lottery Tickets -that are not validated prior to
payment to a player.
m. The. Retallef must settle packs of Scratch Game Tickets tb activate billing according to procedures
established by the MSL,
n. The Retailer acknowledges thatfunds received from the sale of Lottery Tickets constitute a trust fund until
- paid to the MSL and that the Retailer is personally liable for those funds.
o. The Retailer must maintain a bank account for paymbrit of proceeds to the: MSL.
p. The Retailer must deposit In its designated bank- accountaH funds due the MSL from the previous
Accounting Week .prior to the Thursday following the end of the accounting weak. The amount due. to the
M5L will be electronically taken from (his bank.accoubt by 16e M.SL each Thursday.
-q., FailuTo to timely pay the MSL all amount due from a particular Accounting Week may subject the Retailer
to a penalty of $20 and interest as designated by ruto. The Retailer agrees thatit may be liable far, costs
incurred by the MSL to collect anyarnount due to the MSL under this Contract, Including a.ttorney's fees_
4. Compensatiion/Paym.6nts to Retaliers
The MSL,wfll pay the Retailer a commission of 5'/z°/Q for lotto sold by the Retailer; aZ% dommission for each
pack of scratch tickets sold by the Retailer,.and pay the Reta)ler.a.commission of 1%%.of the value of Lottery
Tickets redeemed and validated by the Retailer. The MSL will reimburse the Retailer for all prizes paid by the
Retailer according to the procedures established by the MSL.
F Y2022 4
5. Marketing Requirements:
The Retailer agrees to comply with all MSL marketing requirements and to display MSL provided paint-cf-
purchase,matorials and sighage In a prominent area of its Business Location according :to. instructions.. issued
bythe.MSL. Retailer agrees to utilize Scratch ticket dispensers (inc[uding any in -counter dispensers) provided
by the MSL in the manner prescribed: by the MSL, The Retailer agrees.to abide by -all pramotionai guidelines
adopted by the MSL.
Sec.urity Deposit
The MSL may require the Retailer to, maintain a;security deposit in the amount set by the Director if the
Retailer does not have a favorable credit history, has repeated accounting problems and/or NSF's, or has no
credit history. The security deposit must be in a Form: as set out in Minnesota Statutes., section 34.9A.06,
subdivision 3.
7, Minimum Sales
The MSL tics the right to seta minimum sales level for a Retailer. if the MSL sets 'a minimum sales. level For a
retailer, the Retailer must maintain that sales level in order to remain a Lottery Retailer:
8. Property Provided by MS.L
All property -provided to the Retailer by the MSL, or a vendor under Contract with the MSL, is, and shall remain
the property of the MSL or its vendors. The MSL or Its vendors shall have the rPght to' enter the. -property .of the
Retailer during regular business hours to install and remove any arid all such property at any time. The
Retailer agrees not to relocate, repair, or modify any property of the MSL or its vendors withoul1he: prior
written agreement of the MSL. The MSL will provide the Retailer with dispensers. to -be utilized to sell Scratch
Garne Tickets and a Lotto Game Terminal. The Retaller must provide sufficient counter space for the Lotto
Terminal and Scratch Game Ticket dispensers. The Retailer must provide appropriate electrical utilities for
MSL provided gUipment. Upon expiration of this Contract, the Retailer shall return, or allow MSL employee$
or vendors to 'remave,'all MSL properly:
9. Responsibility for Tickets
The Retailer agrees that all Scratch Game Tickets accepted from the: MSL .or its distributor are. deemed to
have been .purchased by the Retailer at .the price established by the MSL less appropriate Retailer
commission, unless the unsold -tickets are returned to:the MSL according to procedures established.by the
MSL_ The Retailer agrees that all Lotto -Game Tickets- issued by the Retailerrs .Wto. Game Terminal are
deemed. to have been-purchased'l�y. the Retailer unless canceled as authorized by the MSL game procedures.
The Retailer will -exercise diligenae in the storage of Lotto Game Ticket stock and to provide physical security
and control of the Latta Game Ticket stock.. The Retailer.agrees not to borrow or lend Lotto Game Ticket "stack
or Scratch Game Tickets-tolor from. another Retailer or location. The Retailer is responsible for lost, stolen, or
missing Lottery Tickets.
10. Audit of Retailers
The Retailer must'rhaintain current aria aceurate records of all. lottery transac#ions and make them.availabie for
inspection ar audit -by employees of the MSL and to employees of the Department of,Oublic,Safety, 'Alcohol
and Gambling Enforcement Division. The Director may select an auditor to perform the -audit and the Retailer
may be required to pay the costs of the audit.
11. Cancellation; Suspension and Refusal to Renew Contract
A. This Contract may be .cancelled by the Retailer at any.tirrie upon notice to the MSL.
B, The Director must cancel .this Contract or prohibit the sale of Lottery Tickets if the Retailer has:
a) been convicted.of a felony, gross •misOemeanor,.or a gambling related' offense;
b) a person that,owns more then 5% of the Retailer, or an.,officer ar director of the Retailer that has been
convicted of a felony, gross misdemeanor, or gambling rotated offense;
c) committed fraud, misrepresenta€ion, or deceit;
d) provided false or misleading information to the MSL;
e) acted -in a manner prejudicial.to the public confidence:in the iritegrity.of the MSL,
fj owes $500 or more in delinquent taxes io the State of Minnesota; or
g) been conducting business solely to sell Lottery Tickets.
FY2022
C. The Director may cancel, suspend, or non -renew this Contract, or prohibit the sale of Lottery Tickets if the
Retailer has:
a) ceased conducting business at the Business Location.;
b) failed to whiply.with any provision of this Contract;
c) failed to accurately account for the proceeds from the sale of Lottery Tickets;
d) failed to remit to the MSL on a timely balls:the proceeds from the sale of Lottery Tickets;
e) failed to account for Lottery Tickets. received from the. MSL;
f) acted1p a.manner such that the Retailer's, participation as a Retailer is inconsistent with the public
interest, convenience and necessity;
g) experienced a material -change in any factor considered by the Director in eniering into this Contract;
h) failed to rnalntain a security'deposit a&.required by the MSL;
1) failed to maintain a minimum level of Lottery Ticket, sales as set by the MSL;
j) retained an emp.loy,ee''involved. In the.sale of Lottery Tickets who has been convicted of a gambling -
related offense or a .crime involving mpral turpitude;
k) bartered, furnished, or. given alcoholic beverages to a. person under 21 years of age in violation of
Minnesota law, two, or more times within a.two-year period;
1) experienced a change so that it no longer has the financial stability or responsibility to aci as a
Retailer;:.
m) experienced a -substantial change in ownership;
n) committed an act which impairs the Retailer's reputation for honesty and integrity;
.o) sold.Lottery Tickets to a person that the Retailer knows ar has reason to know will re-se(l the Lottery
Tickets to another person;
p) conducted illegal gambling at the Business Locatidh'or has. allowed illegal gambling to be conducted
by othersat the Business Location;
q) violated a provision of'Minnesoia Statutes, chapter-349A or Minnesota.Rules, chapter 7856, game
procedures, order or directive issued by the ❑irector; or
r) experienced -any material change in any of -the qualificdtions for. a Retailer under Minnesota Statutes,
section *A.06, subdivision 2 or Minnesota Rules part 7856.2020.
D, The Director may temporarily suspend this Contract .orprohibit the -safe of Lottery Tickets at the Business
Location without prior notice -Jo the Retailer, for any reason specified in this Contract., provided that
pursuant to Minnesota 'Statutes,.section 340A,06= subd.Wision.11(e), a hearing is conducted within seven
days after' a request for a hearing is made by the Retailer.
R. The.cancellatlon, suspension,. or no.n-renewal of this Contract, or thb prohibition of the sale.of Lottery
Tickets is a contested case under the Administrative Procedures Act (Minnesota Statutes; Chapter 14).
12. Liability and indemnification
The Retailer agrees that in its capacity as a contract& to sell Lottery Tickets, the lRotaller is not acting on
behalf of the-MSL or the State of Minnesota as an agent, officer, or employee, but is asking in the capacity of''
an independent contractor. The Retailer agrees to re#ease, indemnify and bald harmless the ,MSL and the.
State of'Minnesota, its officers, directors, ernployees'and agents from and against any and, all loss, claims,
damages, expenses and costs (in cluding€ attorney fees) arising out of or resulting from any and all actsar
Omissions of'the.Retailer, its owners, employees or agents arising. in the -connection with conducting the sale
of Lottery Tickets, The Retailer further agrees that any .contractual or tortuous liabfll(y incurred by the Retailer
in gonnection with the sale of Lottery Tickets shall be. the Retailer's sole responsibility.
13. Miscellaneous
The Retailer agrees that if they fail .to comply with any term of this Contract, the Lottery may temporarily stop
delivery of additional Scratch Game Tickets and prohibit the use of the -Retailer's Lotto .Game Terminal and
pursue any other appropriate remedy to protect its interests and property.
14; Applicable Lauri and Venue
This Contract and all matters related to it shall be governed by and. interpreted -by the. laws of the State of
Minnesota. Any matter arising under this Contract shall be brought in a court of competent jurisdiction in
Ramsey County, Minnesota.
FY2022