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.