SC — LOTESC — CODESC Resolution No. 056, of April 28, 2004 — Regulates the authorization, control, supervision, and operation of instant and/or number lottery modalities for promotional purposes in the State of Santa Catarina.
The Santa Catarina State Development Company (CODESC), based on the provisions of Law No. 11.348 of January 17, 2000 and Complementary Law No. 243 of January 30, 2003.
RESOLVE:
CHAPTER I
EXPRELIMINARY PROVISIONS
Article 1 – To regulate, in the State of Santa Catarina, the modalities of instant and/or number lotteries, of the promotional lottery type, carried out through drawings, contests, or similar operations, which shall be called Promotional Lottery.
Sole paragraph – The promotional lotteries referred to in the "caput" of this article will be authorized to interested legal entities, which must submit the drawing and prize projects to CODESC for prior approval.
Article 2 – Promotional Lottery is defined as any form of prize distribution carried out by legal entities, which aims to promote or publicize companies, goods, products or services.
Sole paragraph – The raffle tickets (coupons, tickets, cards or any other form of advertising) of promotional lotteries may not be sold.
CHAPTER II
Regarding the qualification/authorization of companies
Article 3 – Legal entities interested in obtaining authorization to conduct a Promotional Lottery must submit to CODESC, at least 30 (thirty) days before the start of its promotion, a request containing the qualification, the type of promotion and the purpose.
Article 4 – The application for qualification/authorization must include the following information and documents, bound together, with the pages numbered and signed by the applicant's legal representative:
a) COMPANY QUALIFICATION
1. Certified copy of the respective articles of incorporation, and subsequent amendments, registered or recorded in the competent registry office or in the Commercial Registry of the State of Santa Catarina;
2. Copy of proof of registration with the National Registry of Legal Entities – CNPJ;
3. A copy of the last three balance sheets or trial balances;
4. Copy of the identity documents and CPF numbers (Brazilian taxpayer ID) of the legal guardians;
5. Copy of the operating license issued by the municipality where the company's headquarters are located;
6. Copy of proof of compliance with:
a) Federal Revenue Service;
b) social security;
c) state farm; and,
d) municipal farm.
7. Negative certificate from the Court Clerk's Office in the company's headquarters, in the name of the legal entity and its legal representatives (partners and/or administrators);
8. A certificate issued by the consumer protection agency in the municipality where the legal entity is headquartered, stating that there are no outstanding issues with consumers.
b) DRAW PLAN AND PRIZES
1. Name of the executing company, scope of the promotional lottery plan, and dissemination mechanism;
2. Detailed description of how the customer will obtain the right to participate in the raffle(s);
3. The plan's execution period, which may not exceed twelve months;
4. Detailed description of the methodology used in the process of determining the winner(s)
5. Method of determining the result and its disclosure mechanism;
6. Indication of the location, date(s) and time of the process(es) for determining the winner(s) (if applicable);
7. Proposal with a detailed description of the award to be offered as well as the prizes;
8. Indication of the quantity of prizes, with a breakdown of their unit and total values;
9. Order of ranking of the prize(s) and their link to the result(s) of the draw(s);
10. Indication of the location for the exhibition and delivery of the prize(s);
11. declaration of the expiration of the right to the prize, after 90 (ninety) days from the date of the event;
12. The model of the tickets, cards, coupons, and similar items containing the element to be raffled off must include:
a) condensed or complete regulations of the event;
b) order number and corresponding series, if applicable;
c) Name of the promoting company, its address and CNPJ (Brazilian tax ID);
d) location, date and method of determining the result;
(e) location and deadline for prize delivery;
f) list of prizes and their ranking order;
g) Address and/or telephone number for information or complaints;
h) logo of the Government of the State of Santa Catarina and CODESC, on the front;
i) CODESC authorization number.
Article 5 – The applicant company must present a contract with a qualified company or professional registered with the Regional Accounting Council of Santa Catarina to conduct an audit of the event during its course, as well as issue a detailed report on the activities and procedures adopted in each extraction.
Article 6 – The determination of the result as well as the identification of the winner(s) must be carried out in the presence of representatives of the authorized legal entity, CODESC, a qualified professional or contracted auditing firm, and the general public (clients).
Article 7 – The applicant company must present proof of payment of the processing fee to CODESC, in the amount of R$ 500,00 (five hundred reais), which will be adjusted annually in February by the annual update index of the IGP-M (FGV).
Article 8 – In the case of a promise of tangible assets as prizes (real estate, vehicles, household appliances and similar items), trips, shares or equity securities, the legal entity, when requesting authorization to hold the event, must present documents proving its effective and full ownership, without any encumbrances or restrictions of rights, which may be replaced by a bank guarantee or surety bond corresponding to the total value of the prize offered. In the case of an event held in more than one stage, the above requirements must be met when authorizing the execution of each stage.
Article 9 – In the case of a prize offered in cash, the legal entity must prove, when requesting authorization to hold the event, the deposit of the prize in a linked account at a banking institution in the amount corresponding to the prize offered, or a bank guarantee letter, or surety bond. The release of funds will always occur after the identification of the winner and formal release by CODESC to the banking institution. In the case of an event held in more than one stage, the above requirements must be met when releasing funds for the execution of each stage.
Article 10 – All promotional material must be submitted to CODESC for approval and must clearly and precisely state the authorization number, the logo of the Government of the State of Santa Catarina, and the logo of CODESC.
§ 1 – The printing of all lottery materials may only be carried out by a licensed printing company, in accordance with current legislation.
§ 2 – The printing authorization will be issued by CODESC directly to the accredited printing company after the final proposed model has been presented and approved.
Article 11 – No authorizations/licenses will be granted, or those already issued may be cancelled, to companies whose directors, partners, shareholders, managers, representatives or attorneys present situations deemed improper, irregular or inadequate in the registers consulted by CODESC.
Article 12 – The authorization to conduct a Promotional Lottery will be granted by CODESC and will allow for a date change due to force majeure, duly justified in the corresponding request submitted, provided that no other changes have occurred to the approved lottery plan, and whose content has been disclosed to the general public.
Article 13 – Upon receiving the authorization/permission, the authorized legal entity must immediately register the promotion regulations with the Registry of Deeds and Documents.
Article 14 – Legal entities may only request new authorization/permission to conduct raffles if the financial report for the previous event has been approved by CODESC.
CHAPTER III
Regarding the accountability report for the event.
Article 15 – Upon completion of the promotion, the authorized legal entity responsible for the Numbers Lottery and/or Instant Lottery must keep all documentation relating to the promotion in its custody for 5 (five) years and file, within fifteen days following the date of the event, extendable for a further fifteen days, the respective accountability report with CODESC, which document shall include:
1. A copy of the minutes or record of the event issued by the person responsible for the independent audit, certifying the regularity of the investigation and the respective procedures;
2. Proof of payment of federal, state, and municipal taxes applicable to the event, specifying the amount of the prize offered;
3. A list of all winners, with their respective prizes;
4. Copy of the CPF (Brazilian taxpayer ID), identity document, winning lottery unit, and a second copy of the "Prize Receipt Form" for each winner;
5. Other information considered relevant.
CHAPTER IV
ON TAXATION
Article 16 – Legal entities shall collect payment via bank slip, as authorized:
1. to CODESC: 10% (ten percent) on the total value of the prize offered; and,
2. to the State Social Assistance Fund: 3% (three percent) of the total value of the prize offered, to be deposited into a specific account for this purpose.
Sole paragraph – The amounts referred to in items 1 and 2 must be collected 30 (thirty) days after the authorization is issued.
CHAPTER V
GENERAL PROVISIONS
Article 17 – CODESC may promote or request investigations to verify the accuracy of data contained in certificates, documents and information submitted.
Article 18 – Any person, in order to handle the interests of legal entities, must present a public power of attorney and an authenticated copy of their identity document and CPF (Brazilian taxpayer identification number).
Article 19 – Only original documents, notarized copies, or copies authenticated by a notary public, or documents submitted with the originals for authentication by the General Secretariat of CODESC, will be accepted.
Sole paragraph – The addition of documents to any process must be done by official letter, through the CODESC protocol.
Article 20 – Failure to comply with the terms of this Resolution may result in the application of the sanctions contained in Chapter IV, Article 18, of Law No. 11.348, of January 17, 2000, without prejudice to other applicable legal penalties.
Article 21 – This Resolution shall enter into force on the date of its publication in the Official Gazette of the State of Santa Catarina, repealing Resolution CODESC/LOTESC No. 002/00 and other provisions to the contrary.
Florianópolis, April 28, 2004
Içuriti Pereira da Silva
Executive president
Aroldo Boschetti Soster
Director of Lotteries and Sports Development
