48:01:02:06.  Criteria for suspension or cancellation of retailer's contract. The executive director may suspend or cancel a retailer's contract for any one or more of the following reasons:

 

          (1)  If the retailer's application for a contract contains false or misleading information;

 

          (2)  If the retailer violates any of the provisions of SDCL 42-7A or this article;

 

          (3)  If the retailer's business address is changed without notifying the lottery;

 

          (4)  If the retailer does not display lottery point-of-sale material in a manner which is readily seen by and available to the public;

 

          (5)  If the retailer does not make the purchase of tickets convenient and readily accessible to the public;

 

          (6)  If the retailer fails to meet minimum sales goals established by this lottery;

 

          (7)  If the retailer fails to display instant tickets in dispensers as provided by the lottery;

 

          (8)  If the retailer fails to pay all winning tickets of $100 or less;

 

          (9)  If a statement, representation, warranty, or certification made or furnished by the retailer to the lottery is determined by the lottery to be false, incorrect, or incomplete;

 

          (10)  If the retailer fails to participate in the automated instant ticket validation program;

 

          (11)  If the retailer fails to make timely payment of billings for instant tickets;

 

          (12)  If the retailer is unable or unwilling to pay its debts or is adjudged bankrupt; or

 

          (13)  If the retailer, any one of its stockholders holding five percent or more of any class of its stock or securities, a director, officer, managerial employee, or other person directly or indirectly controlling or operating the retailer's business is indicted for, charged with, or convicted of a felony or any crime involving moral turpitude or gambling or is the subject of any order, judgment, or decree of any federal or state authority barring, suspending, revoking, or otherwise limiting the right of the retailer or individual to engage in any business, practice or activity.

 

          Source: 14 SDR 53, effective October 11, 1987; 17 SDR 51, effective October 8, 1990; 20 SDR 166, effective April 12, 1994; 39 SDR 100, effective December 5, 2012.

          General Authority: SDCL 42-7A-4(1)(4), 42-7A-21(3)(5)(6)(7)(14)(16)(17).

          Law Implemented: SDCL 42-7A-4(1)(4), 42-7A-14, 42-7A-15, 42-7A-16, 42-7A-21(3)(5)(6)(7)(14)(16)(17).

 

          48:01:02:07.  Hearing on suspension or cancellation of retailer's contract. A hearing regarding the proposed suspension or cancellation of a retailer's contract shall be conducted by the commission in accordance with the contested case provisions of SDCL chapter 1-26. If requested by the retailer, the hearing shall be accelerated when further delivery of tickets has been withheld by the executive director.

 

          Source: 14 SDR 53, effective October 11, 1987; 17 SDR 51, effective October 8, 1990; 39 SDR 100, effective December 5, 2012.

          General Authority: SDCL 42-7A-4(1)(4), 42-7A-21(3)(5)(6)(7)(14)(16)(17).

          Law Implemented: SDCL 1-26-27, 42-7A-4(1)(4), 42-7A-21(3)(5)(6)(7)(14)(16)(17).

 

          48:01:02:08.  Ticket sales prohibited after contract ended -- Final accounting. No sales may be made by a retailer from the date of receipt of a notice of suspension or cancellation of the contract.

 

          Source: 14 SDR 53, effective October 11, 1987; 17 SDR 51, effective October 8, 1990; 39 SDR 100, effective December 5, 2012.

          General Authority: SDCL 42-7A-4(1)(4), 42-7A-21(16)(17).

          Law Implemented: SDCL 42-7A-4(1)(4), 42-7A-21(16)(17).

 

          48:01:02:09.  Display of promotional material -- Seasonal retailers. Repealed.

 

          Source: 14 SDR 53, effective October 11, 1987; 17 SDR 51, effective October 8, 1990; repealed, 39 SDR 100, effective December 5, 2012.