Section 101. Operating Provisions

01. Purpose. These rules are established by the Commission to define and regulate the operation an d administration of the Lottery and the Commission. (3-25-22) 02. Lottery Commission. The Commission is charged with the authority and duty to regulate Lotter y activities in the state of Idaho, consistent with the Idaho Constitution and the enabling legislation. The headquarter s of the Commission and of the Lottery is in Boise. (3-25-22) 03. Powers and Duties of the Commission. (3-25-22) a. Rule Promulgation. The Commission promulgates rules and conditions under which the statewid e Lottery will be conducted. Subjects covered in such rules include but need not be limited to: (3-25-22) i. The types of Lottery games to be conducted; (3-25-22) ii. The prices of tickets in the Lottery; (3-25-22) iii. In general the numbers and sizes of prize disbursements, the manner and frequency of priz e drawings, and the manner in which payment will be made to holders of winning tickets; (3-25-22) iv. The locations at which Lottery tickets may be sold, the manner in which they are to be sold, an d contracting with Lottery vendors, retailers and contractors; (3-25-22) v. The manner in which Lottery sales revenues are to be collected; (3-25-22) vi. The amount of compensation to be paid to retailers; (3-25-22) vii. Other areas relating to the efficient and economical operation and administration of a statewide Lottery consonant with the public interest. (3-25-22) b. Delegation to Director. In addition to those duties assigned to the Director in the Act, the Commission may, insofar as is consistent with the Idaho Constitution and the Act, delegate the performance o f executive or administrative functions to the Director. (3-25-22) 04. Time and Place of Meetings. (3-25-22) a. Regular meetings of the Commission will be held at least quarterly; the date, time, and place will be set by the Commission and, if possible, with at least two (2) weeks’ advance notice

sion may, insofar as is consistent with the Idaho Constitution and the Act, delegate the performance o f executive or administrative functions to the Director. (3-25-22) 04. Time and Place of Meetings. (3-25-22) a. Regular meetings of the Commission will be held at least quarterly; the date, time, and place will be set by the Commission and, if possible, with at least two (2) weeks’ advance notice. The Commission may meet wit h the Director to make recommendations and set policy, to approve or reject reports of the Director, to adopt rules, an d to transact other business. (3-25-22) b. Additional meetings necessary to discharge the business of the Commission may be called fro m time to time by the chairman or by a quorum of the Commission. (3-25-22) 05. Open Meeting Law. All meetings of the Commission will be held in accordance with Idaho’ s Open Meeting Law, Sections 67-2340, et seq., Idaho Code, and in accordance with Section 67-7442, Idaho Code. Al l meetings of the Commission are open to the public, except when executive session is allowed for part of the meeting under the Open Meeting Law. (3-25-22) 06. Director. The Director is responsible for the operation of the Lottery and for managing the affairs of the Commission. A Deputy Director designated by the Director may act for the Director in the absence of the Director. If there is a vacancy in the office of Director, the Commission will designate the Deputy Director as Interi m Director until the vacancy can be filled. (3-25-22) 07. Powers and Duties of the Director. (3-25-22) a. The Director has the authority to implement and execute procedures that he may deem appropriat e for the efficient administration of the Lottery. The Director may also recommend rules governing the establishment , administration, and operation of the Lottery to the Commission for its approval; (3-25-22) b. The Director is authorized to employ sufficient staff as may be required to carry out the functions o f the Commission and the Lottery; (3-25-22) c

procedures that he may deem appropriat e for the efficient administration of the Lottery. The Director may also recommend rules governing the establishment , administration, and operation of the Lottery to the Commission for its approval; (3-25-22) b. The Director is authorized to employ sufficient staff as may be required to carry out the functions o f the Commission and the Lottery; (3-25-22) c. The Director may contract with retailers for the sale of Lottery games and will suspend or terminat e any contract in accordance with the provisions of the Act and the rules of the Commission; (3-25-22) d. The Director will continuously study and investigate all matters pertinent to the efficient operatio n of the Lottery; and (3-25-22) e. The Director will maintain full and complete records of the operation of the Lottery and report on a t least a monthly basis to the Commission and to the governor on the status of the Lottery. (3-25-22) f. The duties and responsibilities of the Director that are not otherwise specified in Idaho law or th e rules adopted by the Commission may be maintained as a policy of the Commission for the purpose of establishing a working relationship between the Director and the Commission. (3-25-22) 08. Lottery Budgets and Financial Statements. The Director must: (3-25-22) a. Submit quarterly financial statements to the Commission, the governor, the state treasurer, and th e legislature. The quarterly financial statements must be prepared in accordance with generally accepted accountin g principles and include a balance sheet, a statement of operations, a statement of changes in financial position, an d related footnotes. The quarterly financial statements must be provided within forty-five (45) days of the last day o f each quarter. (3-25-22) b. Submit annual financial statements to the Commission, the governor, the state treasurer, and each member of the legislature

accountin g principles and include a balance sheet, a statement of operations, a statement of changes in financial position, an d related footnotes. The quarterly financial statements must be provided within forty-five (45) days of the last day o f each quarter. (3-25-22) b. Submit annual financial statements to the Commission, the governor, the state treasurer, and each member of the legislature. The annual financial statements must be prepared in accordance with generally accepte d accounting principles and must include a balance sheet, a statement of operations, a statement of changes in financial position, and related footnotes. The annual financial statements must be examined by the state controller or a firm o f independent certified public accountants in accordance with generally accepted auditing standards and must b e provided within ninety (90) days of the last day of the Lottery’s fiscal year. (3-25-22) 09. Contingency Reserve. (3-25-22) a. The Director may, with the approval of the Commission, allot from moneys available to pa y administrative expenses an amount to be transferred to a contingency reserve established by the Commission. The money allotted can include amounts retained to fund specific future expenses or can be undesignated as to purpose. (3-25-22) b. When the Commission approves a contingency reserve, it must determine the amount necessary fo r a reasonable contingency reserve. (3-25-22) c. Upon approval of the Commission, money in the contingency reserve may be authorized to be used for specific purposes of the Lottery or to be used to fund general administrative expenses if there is a revenue shortfall. Expenses funded from the contingency reserve cannot be included with other administrative expenses fo r purposes of determining compliance with current administrative expenditure limitations. (3-25-22) 10. Special Drawings. (3-25-22) a

ncy reserve may be authorized to be used for specific purposes of the Lottery or to be used to fund general administrative expenses if there is a revenue shortfall. Expenses funded from the contingency reserve cannot be included with other administrative expenses fo r purposes of determining compliance with current administrative expenditure limitations. (3-25-22) 10. Special Drawings. (3-25-22) a. The Director may authorize special drawings to award prizes, such as vacation trips, automobiles , or other tangible items in addition to, or in lieu of, cash awards. The Director will determine the nature and number o f awards for each special drawing. Special drawings for promotional awards may be held independently of th e Lottery’s regular prize drawings or may be incorporated therein. The promotional drawings may be cosponsored and conducted in conjunction with Lottery retailers or other independent businesses. In view of the temporary nature an d indeterminate frequency of the promotional awards drawings, a press announcement and normal advertising media will be used to inform the public of the rules and prizes for each special drawing. (3-25-22) b. Notwithstanding the provisions of Paragraph 100.11.a. of this rule, the Director may, at hi s discretion, award in-lieu equivalent cash awards to the winners of tangible items, in those instances where the Director deems it appropriate. The value of noncash items will be estimated by using either the cost of the item or it s fair-market value. (3-25-22) 11. Retail Drawings. The Director and his designee may authorize retailers to conduct drawings using non-winning Lottery tickets in conjunction with a particular Lottery game. Such authorization will be in writing , specify the type of drawing to be conducted, and forth the methodology to be used in conducting the drawing. (3-25-22) 12. Retail Ticket Price Discounts. (3-25-22) a

t value. (3-25-22) 11. Retail Drawings. The Director and his designee may authorize retailers to conduct drawings using non-winning Lottery tickets in conjunction with a particular Lottery game. Such authorization will be in writing , specify the type of drawing to be conducted, and forth the methodology to be used in conducting the drawing. (3-25-22) 12. Retail Ticket Price Discounts. (3-25-22) a. Notwithstanding the price adopted for the retail sale of a ticket in the rules for a specific Lotter y game, the Commission may offer discounts for the retail sale of Lottery tickets. (3-25-22) i. Discounts for the retail sale of Lottery tickets may be offered to the public through the use o f coupons approved by the Director or by any other method approved by the Director. (3-25-22) ii. Coupons that offer a discount on the retail price of Lottery tickets will be distributed using method s designed to reach the public. (3-25-22) b. Rules for a promotion conducted by the Lottery using retail ticket discounts will be published b y the Director and made available at the Lottery’s offices and retailer locations. (3-25-22) 13. Allocation of Revenues for Prizes. (3-25-22) a. Purpose: The primary objective of the Lottery is to produce the maximum amount of net revenue s to benefit the public purpose of raising revenue consonant with the dignity of the state and the sensibilities of it s citizens. In accomplishing this objective, at least forty-five percent (45%) of the total annual revenues will b e returned in the form of prizes. The Lottery may design and conduct games that return more than forty-five percent (45%) of the revenues received from the sale of tickets in the form of prizes as an incentive to increase the total amount of game sales over the level of sales that otherwise would have been reasonably expected using a lower prize percentage

(45%) of the total annual revenues will b e returned in the form of prizes. The Lottery may design and conduct games that return more than forty-five percent (45%) of the revenues received from the sale of tickets in the form of prizes as an incentive to increase the total amount of game sales over the level of sales that otherwise would have been reasonably expected using a lower prize percentage. Games may also be authorized that return less than forty-five percent (45%) of that game’s revenues s o long as forty-five percent (45%) of the total annual revenues is returned as prizes. (3-25-22) b. Prize payments: In addition to cash prize payments, money set aside by the Lottery and restricte d for the payment of prizes is considered in satisfying the requirement of returning at least forty-five percent (45%) of total revenues to the public in the form of prizes. (3-25-22) c. Averaging game prize payments: Notwithstanding the prize structure adopted for a Lottery game , the amount of revenue returned for prizes among all the games offered by the Lottery may be reallocated so long as a t least forty-five percent (45%) of the total revenue earned from all games is returned to the public in the form of prize s on an annual basis. The Director will report to the Commission on any reallocations made pursuant to Section 100 o f these rules. (3-25-22) 14. Ownership of Lottery Tickets. (3-25-22) a. Except for tickets claimed jointly in accordance with the provisions of Paragraph 100.14.d. of thi s rule, until a name is printed or placed upon a Lottery ticket in the designated area, the ticket is owned by the bearer , who is entitled to any prize attributable to the ticket. (3-25-22) b. If more than one (1) name appears on a ticket, the ticket must be claimed in accordance with th e joint ownership procedures listed in Paragraph 100.14.d. of this rule. (3-25-22) c

aragraph 100.14.d. of thi s rule, until a name is printed or placed upon a Lottery ticket in the designated area, the ticket is owned by the bearer , who is entitled to any prize attributable to the ticket. (3-25-22) b. If more than one (1) name appears on a ticket, the ticket must be claimed in accordance with th e joint ownership procedures listed in Paragraph 100.14.d. of this rule. (3-25-22) c. Groups, family units, clubs, or other organizations may claim a winning ticket if the organizatio n possesses a Federal Employer Identification Number (FEIN) issued by the Internal Revenue Service and that numbe r is shown on the claim form. (3-25-22) d. If a ticket is claimed to be owned by two (2) or more people, the following steps will be taken fo r payment of the prize: (3-25-22) i. All people claiming ownership must complete and sign a claim form and declare their percentag e of the prize prior to processing the claim. After the claim form is submitted to the Lottery, the percentage cannot b e amended. The percentages claimed must add up to one hundred percent (100%) of the prize. (3-25-22) ii. At least one (1) of the people claiming ownership of the ticket must sign the ticket and also sign th e claim form. (3-25-22) iii. The Lottery reserves the right to issue a single prize check instead of multiple prize checks to th e owners of a ticket if the value of each individual prize check would be less than fifty dollars ($50). (3-25-22) iv. Multiple winners of a Lottery prize will be paid only through the Boise Lottery office. Lotter y retailers will not be required to pay more than one (1) winner of a single prize. (3-25-22) 15. Claims. (3-25-22) a. Liability. By submitting a claim, the player agrees that the state, the Commission, the Lottery an d all officials, officers, and employees of each are discharged from all further liability upon payment of the prize. (3-25-22) b. Publicity

through the Boise Lottery office. Lotter y retailers will not be required to pay more than one (1) winner of a single prize. (3-25-22) 15. Claims. (3-25-22) a. Liability. By submitting a claim, the player agrees that the state, the Commission, the Lottery an d all officials, officers, and employees of each are discharged from all further liability upon payment of the prize. (3-25-22) b. Publicity. By submitting a claim, the player also agrees that the Lottery may use the prize winner’ s name and photograph for publicity purposes. (3-25-22) c. Claim period. Prizes may be claimed for a period of one hundred eighty (180) days after th e drawing in which the prize was won or from the last day tickets from the specific instant game were sold. Prizes wo n through an electronic terminal are payable in accordance with the Lottery’s rules. If a claim is not made for the priz e within the applicable period, the prize money may be added to future prize pools, to be used in addition to priz e allotments already allocated, except as provided in Section 67-7433, Idaho Code. (3-25-22) d. Invalid tickets. If a ticket presented to the Lottery is invalid pursuant to the terms of these rules o r the specific game rules, the ticket is not entitled to prize payment. (3-25-22) e. Ticket a bearer instrument. A ticket is a bearer instrument until signed in the space designated on the ticket for signature. The person who signs the ticket is considered the owner of the ticket. Payment of any priz e may be made to a person in possession of an unsigned ticket. All liability of the state, the Commission, the Lottery , the Director, and Lottery employees terminates upon payment. (3-25-22) f. Time of prize payment. All prizes will be paid within a reasonable time after a claim is verified b y the Lottery and a winner is determined

icket is considered the owner of the ticket. Payment of any priz e may be made to a person in possession of an unsigned ticket. All liability of the state, the Commission, the Lottery , the Director, and Lottery employees terminates upon payment. (3-25-22) f. Time of prize payment. All prizes will be paid within a reasonable time after a claim is verified b y the Lottery and a winner is determined. The date of the first installment payment of any prize to be paid in installmen t payments is the date the claim is validated and processed, unless a different date is specified for a particular game in these rules or in the specific game rules. Later installment payments will be made approximately weekly, monthly, or annually, from the date the claim is processed and validated in accordance with the type of prize won and the rule s applicable to the prize. The Lottery may, at any time, delay any prize payment in order to review a change i n circumstances concerning the prize awarded, the payee, or the claim. (3-25-22) g. Prizes payable for winner’s life. If any prize is for the life of the winner, only an individual ma y claim and receive the prize for life. If a group, corporation, or other organization is the winner, the life of the winne r is deemed to be twenty (20) years. (3-25-22) 16. Prizes Payable After Death of Winner. All prizes, and portions of prizes, that remain unpaid a t the time of the prize winner’s death will be payable to the personal representative of the prize winner’s estate onc e satisfactory evidence of the personal representative’s appointment has been provided, and the Director is satisfied that payment to the personal representative is lawful and proper. The Director may rely on a certified copy of a court orde r appointing a personal representative (or similar person responsible for the prize winner’s estate, whether denominate d an administrator, executor, executrix, or other representative of the prize winner’s estate) or may petition the court t o determine the proper payee

fied that payment to the personal representative is lawful and proper. The Director may rely on a certified copy of a court orde r appointing a personal representative (or similar person responsible for the prize winner’s estate, whether denominate d an administrator, executor, executrix, or other representative of the prize winner’s estate) or may petition the court t o determine the proper payee. Payment to the personal representative of the estate of the deceased owner of any priz e winnings will absolve the Director and the Lottery’s employees of any further liability for payment of prize winnings. (3-25-22) 17. Disability of Prize Winner. The Lottery may petition any court of competent jurisdiction for a determination of the rightful payee for the payment of any prize winnings that are or may become due to a perso n under a disability including, but not limited to, mental deficiency, or physical or mental incapacity. (3-25-22) 18. Stolen or Lost Tickets. The Lottery has no responsibility for paying prizes attributable to stolen o r lost tickets. (3-25-22) 19. Effect of Game Rules. In purchasing a ticket the player agrees to comply with Title 67, Chapte r 74, Idaho Code, these rules, the specific game rules, Lottery instructions and procedures, and the final decisions of the Lottery. The Lottery’s decisions and judgments in respect to the determination of winning tickets or any othe r dispute arising from the payment or awarding of prizes will be final and binding upon all participants in the Lottery . If a dispute between the Lottery and a player occurs as to whether a ticket is a winning ticket and the prize is not paid , the Lottery may, solely at the Director’s option, replace the ticket with an unplayed ticket of an equivalent price from any game or refund the price of the ticket. This will be the sole and exclusive remedy of the player. (3-25-22) 20. Disputed Prizes

ipants in the Lottery . If a dispute between the Lottery and a player occurs as to whether a ticket is a winning ticket and the prize is not paid , the Lottery may, solely at the Director’s option, replace the ticket with an unplayed ticket of an equivalent price from any game or refund the price of the ticket. This will be the sole and exclusive remedy of the player. (3-25-22) 20. Disputed Prizes. If there is a dispute, or it appears that there may a dispute concerning payment o r ownership of any prize or any other legal issue involving the prize, the Lottery may refrain from making payment o f the prize pending a final determination by the Lottery or by a court of competent jurisdiction as to the proper paymen t of the prize. (3-25-22) 21. Sale of Lottery Tickets. Lottery tickets may be sold for cash, check, money order, credit card, electronic funds transfer, or debit card. (3-25-22)