42-7A-21.   Rules and regulations. The commission shall promulgate rules pursuant to chapter 1-26 governing the establishment and operation of a state lottery as necessary to carry out the purposes of this chapter. The commission shall promulgate rules concerning the following:

             (1)      The types of ticket lottery games to be conducted as authorized pursuant to this chapter;

             (2)      The manner of selecting the winning tickets. However, if a lottery game utilizes a drawing of winning numbers, a drawing among entries, or a drawing among finalists, such drawings shall always be open to the public and shall be recorded on both video and audio tape;

             (3)      The manner of payment of prizes to the holders of winning tickets;

             (4)      The frequency of the drawings or selections of winning tickets;

             (5)      The types of locations at which tickets may be sold;

             (6)      The methods to be used in selling tickets;

             (7)      Additional qualifications for the selection of lottery retailers, video lottery machine manufacturers, distributors, or operators and the amount of application fees to be paid by each;

             (8)      The amount and method of compensation to be paid to lottery retailers, including special bonuses and incentives;

             (9)      Deadlines for claims for prizes by winners of each lottery game. However, in no instance may such deadline be for more than one year;

             (10)      The mechanical and electronic specifications for each video lottery machine. At a minimum, each video lottery machine shall meet the requirements of § 42-7A-37;

             (11)      Machine security testing and inspection procedures;

             (12)      Liability for machine malfunction;

             (13)      Machine maintenance and repair;

             (14)      Financial responsibility of persons licensed under this chapter;

             (15)      Accounting procedures for net machine income;

             (16)      Licensing procedures under this chapter; and

             (17)      Such other matters necessary or desirable for the efficient or economical operation of the lottery or for the convenience of the public.

Source: SL 1987, ch 313, § 21; SL 1989, ch 368, § 9; SL 1991, ch 353, § 1; SL 1995, ch 243, § 1.

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