PURPOSE: The purpose of this rule is to authorize the payment of cash or its equivalent by cash, check, annuity or other investment vehicle.

1. (1) The director shall have the authority to designate in 12 CSR 40-85, any game prize to be paid in periodic payments as set forth in this rule. Any prize not designated to be paid in periodic payments will be paid in a lump sum.

2. (2) Lump sum payments may be paid out as follows:

   1. (A) Checks drawn upon the state treasury; or
   2. (B) Cash payments by retailers up to a maximum of five hundred ninety-nine dollars ($599) per prize.

3. (3) Periodic payments shall be made as follows:

   1. (A) The director shall designate the payment of a periodic prize over a total payment period of not more than twenty (20) years;
   2. (B) The director shall designate the length of periodic payment period;
   3. (C) The first payment shall be in the first periodic payment period in which the prize is won; thereafter, there shall be one (1) payment per periodic payment period; and
   4. (D) The director shall purchase annuities from annuity sellers to provide periodic prize payments under this section. Annuity sellers shall meet the requirements of 12 CSR 40- 60.040. Annuities shall be created only for specified prize winners or beneficiaries. Funds held by an annuity seller under this section are the property of the prize winner or beneficiary and shall not be considered state funds.

AUTHORITY: sections 313.220 and 313.230(2), RSMo (1986). Original rule filed Jan. 10, 1986, effective Jan. 20, 1986. Amended: Filed Jan. 23, 1986, effective Feb. 1, 1986. Amended: Filed April 27, 1987, effective July 11, 1987.