1. 1. A North Dakota lottery ticket may not be bought by or otherwise provided to, and a prize may not be paid to, the following individuals or to a parent, stepparent, child, stepchild, spouse, or sibling who is a regular member of the same household of the following individuals:

1. a. A member of the lottery advisory commission or employee of the lottery, unless authorized in writing by the director; or

2. b. An officer or employee of the lottery's gaming system vendor.

2. 2. An individual who knowingly violates subsection 1 is guilty of a class B misdemeanor on the first offense and a class A misdemeanor on a subsequent offense.

3. 3. A retailer or employee of a retailer may buy a ticket and be paid a prize for a winning ticket.

4. 4. Only a retailer may sell a ticket. A retailer may sell a ticket only at the site stated on the license or at a temporary site for a special event authorized by the lottery. A retailer may not sell a ticket at a price greater than the price set by the lottery rules. A person convicted of violating this subsection is guilty of a class A misdemeanor on the first offense and a class C felony on a subsequent offense.

5. 5. A retailer may conduct a second chance drawing of entry forms or tickets to promote the sale of a ticket at that site provided that an individual is not required to purchase a ticket to participate.

6. 6. No ticket may be sold or given to a minor. A retailer, employee of a retailer, or any other person who knowingly violates this subsection is guilty of a class B misdemeanor on the first offense and a class A misdemeanor on a subsequent offense.

7. 7. The prize to be paid or awarded for a winning ticket must be paid to the individual who the director determines is the owner of the ticket. However, the prize of a deceased winning player must be paid to the lawful representative of the estate. A prize may not be paid on a winning ticket that has been purchased by use of a stolen lottery gift certificate or acquired illegally.

8. 8. If an individual steals a ticket or lottery gift certificate from a retailer, the individual is guilty of a class A misdemeanor. However, if the total value of the tickets or gift certificates stolen exceeds five hundred dollars, the offense is a class C felony.

9. 9. A prize awarded is subject to state and federal income tax laws and rules.

10. 10. An individual who, with intent to defraud, falsely makes, alters, forges, passes, or counterfeits a ticket or gift certificate issued by the lottery, regardless of the amount gained, is guilty of a class C felony.

11. 11. The state, members of the lottery advisory commission, and employees of the lottery are discharged of all further liability upon payment of a prize.