South Dakota Administrative Code

Rule 20:04:33:42 Proscribed conduct. 20:04:33:42. Proscribed conduct. Any act, whether of the same or of a different character than specified in this article, that constitutes dishonesty or fraudulent conduct, whether arising within or without the pursuit of the license privilege…

Rule 20:04:33:43 Discovery of violations. 20:04:33:43. Discovery of violations. A licensee must immediately notify the executive secretary of the discovery of a violation or of a suspected violation of SDCL chapter 42-7 or this article. Source: 32 SDR 32, effective August 30, 200…

Rule 20:04:33:44 Termination of employment of key employee or hub employee. 20:04:33:44. Termination of employment of key employee or hub employee. A key employee or hub employee licensee, who changes employment, is terminated, or resigns employment must notify the executive secr…

Rule 20:04:33:45 Key employee. 20:04:33:45. Key employee. If it is the judgment of the commission that the public interest will be served by requiring a person to be licensed as a key employee, the commission shall serve notice of the determination upon the hub licensee who emplo…

Rule 20:04:33:46 Review of key licensee status. 20:04:33:46. Review of key licensee status. A person required to submit an application to be licensed as a key employee as required by § 20:04:33:45 may request the commission, in writing, to review its determination of that individ…

Rule 20:04:33:47 Power of commission to review and audit -- Disciplinary action. 20:04:33:47. Power of commission to review and audit -- Disciplinary action. The hub licensee must keep accurate, complete, legible, and permanent records for all business, account, and wagering acti…

Rule 20:04:33:48 Annual audited financial statements -- Disciplinary action. 20:04:33:48. Annual audited financial statements -- Disciplinary action. The commission or the executive secretary may require that the hub licensee submit annual audited financial statements to the comm…

Rule 20:04:33:49 Change of hub business year. 20:04:33:49. Change of hub business year. If the hub licensee wishes to change its business year after being licensed the licensee must notify the executive secretary in writing and submit to the executive secretary audited financial …

Rule 20:04:33:50 Other gaming activities, duty to notify commission. 20:04:33:50. Other gaming activities, duty to notify commission. Any licensee who intends to become involved in gaming or pari-mutuel operations outside of the State of South Dakota or on any Indian reservation …

Rule 20:04:33:51 Business contracts. 20:04:33:51. Business contracts. The hub licensee shall submit a copy of each proposed business contract to the executive secretary. The executive secretary or the commission may approve or deny any hub contract and require changes in the cont…

Rule 20:04:33:52 Legal process and pleadings. 20:04:33:52. Legal process and pleadings. A licensee shall deliver to the commission a copy of any process or pleading from any jurisdiction in which the licensee is a party within 30 days of being served. This requirement includes an…

Rule 20:04:33:53 Confidentiality. 20:04:33:53. Confidentiality. The following information is considered confidential and is not subject to public disclosure except pursuant to a court order: (1) Tax statements and information received by the commission during the licensing proces…

Rule 20:04:33:54 Compliance with the Interstate Horse Racing Act. 20:04:33:54. Compliance with the Interstate Horse Racing Act. A multi-jurisdictional totalizator hub licensee must comply with the provisions of the Interstate Horse Racing Act, 15 U.S.C. §§ 3001 to 3007 as of July…

Rule 20:04:33:55 Racing rules apply. 20:04:33:55. Racing rules apply. The provisions of chapters 20:04:01, 20:04:29, 20:04:31, and 20:04:32 generally apply to the licensing, operation, and regulation of multi-jurisdictional totalizator hub, unless superseded by a provision in thi…

Rule 20:04:33:56 Establishing an account. 20:04:33:56. Establishing an account. To establish an account with a multi-jurisdictional totalizator hub an application form must be signed or otherwise authorized in a manner approved by the commission and include the following informat…

Rule 20:04:33:57 Account application verification. 20:04:33:57. Account application verification. Each application submitted is subject to electronic verification of the name, principal residence address, date of birth, and social security number by either a national, independent…

Rule 20:04:33:58 Account identification number. 20:04:33:58. Account identification number. Each account shall have a unique account identification number assigned by the hub. Source: 32 SDR 32, effective August 30, 2005. General Authority: SDCL 42-7-56(15)(16). Law Implemented: …

Rule 20:04:33:59 Secure personal identification code. 20:04:33:59. Secure personal identification code. The applicant for an account shall supply the hub licensee with an alpha-numeric code to be used as a secure personal identification code when the account holder is placing an …

Rule 20:04:33:60 Information to be provided to account holder. 20:04:33:60. Information to be provided to account holder. At the time the account is approved, the account holder shall receive the following information: (1) Unique account identification number; (2) A copy of the a…

Rule 20:04:33:61 Accounts nontransferable. 20:04:33:61. Accounts nontransferable. No account may be transferred between individuals, hubs, or other legal entities. Source: 32 SDR 32, effective August 30, 2005. General Authority: SDCL 42-7-56(15)(16). Law Implemented: SDCL 42-7-56…

Rule 20:04:33:62 Hub licensee may close or refuse to open accounts. 20:04:33:62. Hub licensee may close or refuse to open accounts. The hub licensee may close or refuse to open an account for what the hub licensee considers good and sufficient reason. The hub licensee shall order…

Rule 20:04:33:63 Minimum account balance. 20:04:33:63. Minimum account balance. The account holder shall maintain the minimum account balance established in the hub’s operating plan. No wager may be made or accepted that lowers the account balance below the minimum balance. Sourc…

Rule 20:04:33:64 Hub licensee may refuse deposits. 20:04:33:64. Hub licensee may refuse deposits. The hub licensee may refuse deposits to an account for what the hub licensee considers good and sufficient reason. Source: 32 SDR 32, effective August 30, 2005. General Authority: SD…

Rule 20:04:33:65 Hub licensee may suspend or close accounts. 20:04:33:65. Hub licensee may suspend or close accounts. The hub licensee may suspend or close any account at any time provided that when an account is closed, the hub licensee within five business days returns to the a…

Rule 20:04:33:66 Account credits. 20:04:33:66. Account credits. After the initial establishment of an account, credits to an account may only be made as follows: (1) Deposits by the account holder in the form of: (a) Cash; (b) Check, money order, or negotiable order of withdrawal…

Rule 20:04:33:67 Account debits. 20:04:33:67. Account debits. The hub licensee may only debit an account as follows: (1) Upon receipt by the hub licensee of information instructing that a wagering transaction is to be placed, the hub licensee may only debit the account in the amo…

Rule 20:04:33:68 Inactive accounts. 20:04:33:68. Inactive accounts. The hub licensee may close any account in which there has been no activity for at least six months, returning funds remaining therein to the account holder by certified mail with return receipt requested to the a…

Rule 20:04:33:69 Deceased account holder. 20:04:33:69. Deceased account holder. In the event an account holder is deceased, funds accrued in the account shall be released to the decedent's legal representative upon receipt of a certified copy of a valid death certificate, tax rel…

Rule 20:04:33:70 Posting of credits. 20:04:33:70. Posting of credits. Checks, money orders, and other negotiable instruments shall be posted to the credit of the account holder in accordance with the financial institution funds availability schedule. Source: 32 SDR 32, effective …

Rule 20:04:33:71 Payment of interest not required. 20:04:33:71. Payment of interest not required. Interest is not required to be paid on monies deposited with the account wagering center for account wagering. Source: 32 SDR 32, effective August 30, 2005. General Authority: SDCL 4…

Rule 20:04:33:72 Manner of wagers approved by commission. 20:04:33:72. Manner of wagers approved by commission. Account wagers may only be accepted during times, days, and in manners as approved by the commission. Source: 32 SDR 32, effective August 30, 2005. General Authority: S…

Rule 20:04:33:73 Closing hub wagering. 20:04:33:73. Closing hub wagering. Notwithstanding any other rules, the managing employee of the hub licensee may at any time declare the hub operation closed for receiving wagers on any pari-mutuel pool, race, group of races, or closed for …

Rule 20:04:33:74 Refusal of wagers. 20:04:33:74. Refusal of wagers. A hub licensee may refuse any wager at any time for what the licensee considers good and sufficient reason. A written report of such action shall be sent to the commission within 48 hours of the action. Source: 3…

Rule 20:04:33:75 Account security - Account holder responsibility. 20:04:33:75. Account security -- Account holder responsibility. An account is for the personal use of the individual account holder only. The account holder is responsible for maintaining the confidentiality of th…

Rule 20:04:33:76 Payment on winning wagers -- Refunds. 20:04:33:76. Payment on winning wagers -- Refunds. A payment of any winning pari-mutuel wager and credit for an account wager which has been ordered refunded by the host track shall be posted to the credit of the account hold…

Rule 20:04:33:77 Errors in accounts. 20:04:33:77. Errors in accounts. Normal banking practices apply in the case of any errors in posting an amount to an account or a change in the pari-mutuel payout. Source: 32 SDR 32, effective August 30, 2005. General Authority: SDCL 42-7-56(1…

Rule 20:04:33:78 Monthly account statements. 20:04:33:78. Monthly account statements. The hub licensee shall provide to each account holder monthly written statements of an individual’s account activity. In addition, an account holder has the right to request a statement at any t…

Rule 20:04:33:79 Account holder’s principal residence address. 20:04:33:79. Account holder’s principal residence address. The principal residence address provided in writing by the account holder at the time of application is deemed to be the proper address for all mailing includ…

Rule 20:04:33:80 Wager information confidential -- Disciplinary action for violations. 20:04:33:80. Wager information confidential -- Disciplinary action for violations. No employee or agent of the hub licensee may divulge any confidential information related to the placing of an…

Rule 20:06:01:01 Definitions. 20:06:01:01. Definitions. Terms used in this article mean: (1) "Director," the director of the Division of Insurance, Department of Labor and Regulation; (2) "Division," the Division of Insurance, Department of Labor and Regulation; (3) "Department,"…

Rule 20:06:01:02 Determination of penalty amount. 20:06:01:02. Determination of penalty amount. In determining the penalty for a violation of an insurance law by an agent, broker, or insurer, the director may consider, but is not limited to, the following factors: (1) Prior viola…

Rule 20:06:01:03 Determination of good standing. 20:06:01:03. Determination of good standing. In determining whether a person is in good standing, the director may consider, but is not limited to, the following factors: (1) Suspension, revocation, or denial of license by a state;…

Rule 20:06:01:04 Determination of denial of license. 20:06:01:04. Determination of denial of license. In determining whether a license application should be denied or why a prior revocation or refusal to renew a license should not bar licensure, the director may, in addition to t…

Rule 20:06:01:05 Record keeping. 20:06:01:05. Record keeping. An insurer must keep for five years all insurance applications, riders, endorsements, or other documents which require the insured's signature to alter the terms or conditions of the policy or contract. Records may be …

Rule 20:06:01:05.01 Records to be maintained by producers. 20:06:01:05.01. Records to be maintained by producers. The following types of records are business records pertaining to transactions under the insurance producer's license and are required to be kept pursuant to SDCL 58-…

Rule 20:06:01:06 Qualifications of insurers providing security for judgments. 20:06:01:06. Qualifications of insurers providing security for judgments. Pursuant to SDCL chapter 21-3A, an insurer which is qualified to provide security for payment of a judgment is one which is lice…

Rule 20:06:01:07 Examination of foreign insurers. 20:06:01:07. Examination of foreign insurers. Foreign or alien insurers must be examined every five years unless they qualify for exemption under SDCL 58-3-4. Source: 20 SDR 36, effective September 19, 1993. General Authority: SDC…

Rule 20:06:03:01 Definitions. 20:06:03:01. Definitions. The terms "solicit" and "solicitation" for purposes of this chapter shall include: (1) Any request for a proxy, whether or not accompanied by or included in a form of proxy; (2) Any request to execute or not to execute, or t…

Rule 20:06:03:02 Limitations on definitions. 20:06:03:02. Limitations on definitions. The terms "solicit" and "solicitation" do not include: (1) Any solicitation by a person in respect to stock of which the person is the beneficial owner; (2) An action by a broker or other person…

Rule 20:06:03:03 Scope of chapter. 20:06:03:03. Scope of chapter. This chapter is applicable to all domestic stock insurers having 100 or more stockholders; provided, however, that this chapter shall not apply to any insurer if 95 percent or more of its stock is owned or controll…