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Administrative Rules
Rule 48:02:03 LICENSING OF MANUFACTURERS, DISTRIBUTORS, OPERATORS, AND ESTABLISHMENTS

CHAPTER 48:02:03

LICENSING OF MANUFACTURERS, DISTRIBUTORS, OPERATORS, AND ESTABLISHMENTS

 

Section

48:02:03:01        Form of application.

48:02:03:02        Submission of application.

48:02:03:03        Application fees.

48:02:03:04        Consideration of applications by commission.

48:02:03:05        Issuance of license.

48:02:03:06        Provisional licensure.

48:02:03:07        Notice of incomplete application.

48:02:03:08        Notice of unapproved investigation or testing.

48:02:03:09        Procedure for review of license denial.

48:02:03:10        Hearing on review of denial by commission.

48:02:03:11        License fees -- Renewal fees and dates.

48:02:03:12        Renewal of license.

48:02:03:13        Notice of change affecting license.




Rule 48:02:03:01 Form of application.

          48:02:03:01.  Form of application. All applicants required to be qualified and licensed as manufacturers, distributors, operators, establishments, and persons under subdivision 48:02:02:02(5) must provide all information required in chapter 48:02:02 and complete the forms provided by the lottery.

          Source: 16 SDR 27, effective August 18, 1989; 17 SDR 51, effective October 8, 1990.

          General Authority: SDCL 42-7A-21(16).

          Law Implemented: SDCL 42-7A-21(16).




Rule 48:02:03:02 Submission of application.

          48:02:03:02.  Submission of application. All applications shall be submitted to the South Dakota Lottery at its office in Pierre.

          Source: 16 SDR 27, effective August 18, 1989.

          General Authority: SDCL 42-7A-21(16).

          Law Implemented: SDCL 42-7A-21(16).




Rule 48:02:03:03 Application fees.

          48:02:03:03.  Application fees. An application fee of $50 shall accompany each application. An application fee of $25 shall accompany each application of those persons who qualify under subdivision 48:02:02:02(5) only and who are not included under subdivisions (1) to (4), inclusive, of § 48:02:02:02.

          Source: 16 SDR 27, effective August 18, 1989; 17 SDR 51, effective October 8, 1990.

          General Authority: SDCL 42-7A-21(16).

          Law Implemented: SDCL 42-7A-16(7), 42-7A-41.




Rule 48:02:03:04 Consideration of applications by commission.

          48:02:03:04.  Consideration of applications by commission. The lottery shall only consider complete applications for licensure. Applications are complete when the applicant has submitted the following:

          (1)  All information required or requested by the lottery in chapter 48:02:02;

          (2)  Completed and executed forms and documents; and

          (3)  Payment of the application fees and costs in § 48:02:03:03.

          Source: 16 SDR 27, effective August 18, 1989.

          General Authority: SDCL 42-7A-21(16).

          Law Implemented: SDCL 42-7A-21(16).




Rule 48:02:03:05 Issuance of license.

          48:02:03:05.  Issuance of license. The lottery shall issue the applicable license after the background investigations are concluded; the lottery determines the applicant is qualified under SDCL 42-7A and this article; and the applicable license fees in § 48:02:03:11 are remitted.

          Source: 16 SDR 27, effective August 18, 1989.

          General Authority: SDCL 42-7A-21(16).

          Law Implemented: SDCL 42-7A-43.




    48:02:03:06.  Provisional licensure. The lottery may issue a provisional license subject to the applicant meeting the conditions required by the lottery. The lottery may issue a provisional license to applicants whose applications are complete under § 48:02:03:04 for purposes of allowing persons named in the application to participate in training seminars in preparation for qualification as a Type I or II technician. The lottery shall restrict the type of activities the applicant may engage in under the terms of the provisional license. The lottery shall issue a license to the applicant if the lottery verifies the performance of the conditions.

    Source: 16 SDR 27, effective August 18, 1989; 21 SDR 219, effective June 26, 1995; 49 SDR 51, effective November 27, 2022.

    General Authority: SDCL 42-7A-21(16).

    Law Implemented: SDCL 42-7A-21.

    Cross-Reference: Maintenance of video lottery machines, chapter 48:02:10.




Rule 48:02:03:07 Notice of incomplete application.

          48:02:03:07.  Notice of incomplete application. The lottery shall notify applicants if their application is incomplete and shall state the areas in which it is deficient.

          Source: 16 SDR 27, effective August 18, 1989.

          General Authority: SDCL 42-7A-21(16).

          Law Implemented: SDCL 42-7A-21(16).




Rule 48:02:03:08 Notice of unapproved investigation or testing.

          48:02:03:08.  Notice of unapproved investigation or testing. The lottery shall notify applicants in writing of denial for licensure or machine approval and cite the reasons for its determination.

          Source: 16 SDR 27, effective August 18, 1989.

          General Authority: SDCL 42-7A-21(16).

          Law Implemented: SDCL 42-7A-21(16).

          Cross-References: General video lottery machine requirements, ch 48:02:07; Video lottery machine hardware and software requirements, ch 48:02:08.




Rule 48:02:03:09 Procedure for review of license denial.

          48:02:03:09.  Procedure for review of license denial. Applicants may request a hearing before the commission to review a license denial. A request for hearing must be made in writing and received by the lottery within ten days from the date of denial. The request for hearing must be signed by the applicant and state the applicant's reasons, including supporting documentation, for license approval.

          Source: 16 SDR 27, effective August 18, 1989.

          General Authority: SDCL 42-7A-21(16).

          Law Implemented: SDCL 42-7A-21(16).




Rule 48:02:03:10 Hearing on review of denial by commission.

          48:02:03:10.  Hearing on review of denial by commission. A hearing to review a license denial shall be heard by the commission at its next regularly scheduled meeting and shall be conducted in accordance with the contested case provisions of SDCL 1-26.

          Source: 16 SDR 27, effective August 18, 1989.

          General Authority: SDCL 42-7A-21(16).

          Law Implemented: SDCL 1-26, 42-7A-21(16).




Rule 48:02:03:11 License fees -- Renewal fees and dates.

          48:02:03:11.  License fees -- Renewal fees and dates. A licensee shall pay the following license fees annually, as applicable:

 

          (1)  Manufacturer, $5,000;

          (2)  Distributor, $5,000;

          (3)  Operator, the greater of $1,000 or $100 for each machine licensed;

          (4)  Establishment, $100.

 

          A manufacturer or a distributor shall pay the fee at the time of license issuance and shall pay the renewal fee by June 30 each year.

 

          An operator shall remit the license fee for each new machine licensed on the date specified on the billing statement. By July 31 each year, an operator shall pay a renewal fee of $100 for each machine licensed as of June 30 or $1,000, whichever is greater.

 

          An establishment shall pay the fee at the time of license issuance and shall pay the renewal fee annually by the end of the quarter in which the license was first issued. Effective renewal dates are September 30, December 30, March 31, and June 30.

 

          Source: 16 SDR 27, effective August 18, 1989; 17 SDR 51, effective October 8, 1990; 19 SDR 62, effective October 27, 1992; 37 SDR 215, effective May 31, 2011.

          General Authority: SDCL 42-7A-21(16).

          Law Implemented: SDCL 42-7A-41.

 

          Declaratory Ruling:

          "New machine" as used in the above-cited rule is defined as any machine that is brought into service and for which the annual $100 renewal fee has not been paid. The additional fee is to be charged for machines new to the system. South Dakota Lottery Commission Declaratory Ruling dated March 27, 1997.

 




Rule 48:02:03:12 Renewal of license.

          48:02:03:12.  Renewal of license. The lottery shall renew all video lottery licenses annually provided each licensee submits the applicable renewal fee, completes the renewal forms provided by the lottery, and continues to meet the qualifications in chapter 48:02:02.

          Source: 16 SDR 27, effective August 18, 1989.

          General Authority: SDCL 42-7A-21(16).

          Law Implemented: SDCL 42-7A-41.




Rule 48:02:03:13 Notice of change affecting license.

          48:02:03:13.  Notice of change affecting license. Licensees must immediately notify the lottery of any proposed change of ownership or any transaction that requires approval of qualifications under chapter 48:02:02.

          Source: 16 SDR 27, effective August 18, 1989.

          General Authority: SDCL 42-7A-21(16).

          Law Implemented: SDCL 42-7A-41.

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