(A) Notwithstanding the provisions of this chapter, the commission has the authority to adopt temporary regulations to implement the provisions of this chapter, which must be consistent with the provisions of this chapter. These temporary regulations are not considered regulations as defined by the Administrative Procedures Act; however, these temporary regulations have the force and effect of law. The only lottery games that may be played pursuant to these temporary regulations are instant tickets and on- line lottery games. A multi-state lottery game must not be played under these temporary regulations, and may be implemented only when regulations have been promulgated and take effect pursuant to the Administrative Procedures Act. The commission must submit regulations for the implementation of this chapter as required in Sections 59-150-20, 59-150-30, 59-150-50, and 59-150-70 to the General Assembly for review in accordance with the Administrative Procedures Act by January 15, 2002.

(B) For purposes of this section, "temporary regulations" means regulations regarding the programs, policies, and procedures required to implement the provisions of this chapter.

(C) The temporary regulations authorized in this section are repealed on July 15, 2004, or on the effective date of regulations promulgated pursuant to the Administrative Procedures Act, whichever date occurs first. If regulations promulgated pursuant to the Administrative Procedures Act have not taken effect by July 15, 2004, the commission may promulgate the temporary regulations authorized by this section as emergency regulations pursuant to Section 1-23-130. For purposes of this subsection, the circumstances required for emergency regulations in Section 1-23-130(A) do not apply, but all other provisions of Section 1-23-130 are applicable.

(D) In accordance with the Administrative Procedures Act, the board may promulgate regulations which must specify, but are not limited to:

(1) categories of lottery games as described in Section 59-150-20(7). The lottery games may include the selling of lottery game tickets or shares or the use of electronic or mechanical devices, except those electronic or mechanical devices prohibited by Section 59-150-20(7), and except that the game or activity in which the winner is selected must not be based upon the outcome of a football, basketball, baseball, or similar game or sports event;

(2) sale price of lottery game tickets or shares and the manner of sale except that all sales must be for cash only. Payment by checks, credit cards, charge cards, or other form of deferred payment and payment by debit card are prohibited;

(3) number and amount of prizes;

(4) method and location of selecting or validating winning lottery game tickets or shares;

(5) manner and time of payment of prizes, which may include lump sum payments or installments over a period of years;

(6) manner of payment of prizes by a lottery retailer to the holders of a winning lottery game ticket or share including, without limitation, provision for payment of prizes not exceeding six hundred dollars after deducting the price of the lottery game ticket or share and after performing validation procedures appropriate to the game and as specified by the board; the board may provide for a limited number of retailers who may pay prizes of up to five thousand dollars after performing validation procedures appropriate to the game and as specified by the board without regard to where the lottery game ticket or share was purchased;

(7) frequency of lottery games and drawings or selection of winning lottery game tickets or shares;

(8) means of conducting drawings, except that an elected or appointed official, other than the members of the board or its designee, must not preside or appear at a drawing;

(9) method to be used in selling lottery game tickets or shares, which may include the use of electronic or mechanical devices, but the devices must be placed on the premises of the lottery retailer in a location which is only accessible to the lottery retailer or his employees;

(10) manner and amount of compensation to a lottery retailer within the limits of this chapter; and

(11) other matters necessary or desirable toward ensuring the efficient and effective operation of lottery games as defined in Section 59-150-20(7), the continued entertainment and convenience of the public, and the integrity of the lottery.

(E) The commission shall have tickets available for purchase by the public no later than November 1, 2001, or as soon as practicable.

(F) If the board submits a regulation for a lottery game resulting in an instant winner, the board must consider instituting an additional lottery game that makes use of the nonwinning instant tickets on a monthly or other periodic basis, so as to encourage nonwinners to accumulate their tickets instead of disposing of them separately and creating unsightly litter.

HISTORY: 2001 Act No. 59, Section 2.