                                 CODE OF VIRGINIA

DEPOSIT OF MONEYS RECEIVED BY AGENTS; PERFORMANCE OF FUNCTIONS, ETC., IN
CONNECTION WITH OPERATION OF LOTTERY; COMPENSATION OF AGENTS (§ 58.1-4021)

A. The Director shall require all lottery sales agents to deposit to the credit
of the Virginia Lottery Fund in banks, designated by the State Treasurer, all
moneys received by such agents from the sale of lottery tickets or shares, less
any amount paid as prizes or retained as compensation to agents for the sale of
the tickets or shares, and to file with the Director, or his designated agents,
reports of their receipts, transactions and disbursements pertaining to the sale
of lottery tickets in such form and containing such information as he may
require. Such deposits and reports shall be submitted at such times and within
such intervals as shall be prescribed by rule and regulation of the Department.
The Director may arrange for any person, including a bank, to perform such
functions, activities or services in connection with the operation of the
lottery as he may deem advisable pursuant to this chapter and the rules and
regulations of the Department, and such functions, activities and services shall
constitute lawful functions, activities and services of the person.

B. The rules and regulations of the Department shall provide for a service
charge to the licensed agent if any payor bank dishonors a check or draft
tendered for deposit to the credit of the Virginia Lottery Fund by a licensed
agent or for an electronic transfer of funds to the Virginia Lottery Fund from
the account of a licensed agent for money received from the sale of lottery
tickets.
			The regulations of the Department shall provide for a service charge and
penalty to a licensed agent if any payor bank dishonors a check or draft from
the account of a licensed agent tendered for payment of any prize by a licensed
agent to any claimant. Any such charge or penalty so collected by the Department
shall be used first to reimburse the claimant for any charges or penalties
incurred by him as a result of the licensed agent&#8217;s dishonored check
tendered as payment of any prize and the remainder to offset the
Department&#8217;s administrative costs.

C. A licensed agent shall be charged interest as provided in &#xA7; 58.1-15 on
the money that is not timely paid to the Virginia Lottery Fund in accordance
with the rules and regulations of the Department and shall in addition thereto
pay penalties as provided by rules and regulations of the Department.

D. Should the Department refer the debt of any licensed agent to the Attorney
General, the Department of Taxation as provided in &#xA7; 58.1-520 et seq., or
any other central collection unit of the Commonwealth, an additional service
charge shall be imposed in the amount necessary to cover the administrative
costs of the Department and agencies to which such debt is referred.

E. Notwithstanding the provisions of Chapter 5 (&#xA7; 8.01-257 et seq.) of
Title 8.01, in any action for the collection of a debt owed by any licensed
agent to the lottery, venue shall lie in the City of Richmond.

F. All proceeds from the sale of lottery tickets or shares received by a person
in the capacity of a sales agent shall constitute a trust fund until deposited
into the Virginia Lottery Fund either directly or through the Department&#8217;s
authorized collection representative. Proceeds shall include cash proceeds of
the sale of any lottery products, less any amount paid as prizes or retained as
compensation to agents for the sale of the tickets or shares. Sales agents shall
be personally liable for all proceeds.

G. If the Director determines that the deposit or collection from any sales
agent of any moneys or proceeds under this section is or will be jeopardized or
will otherwise be delayed, he may adjust either the time or the interval or both
for such deposits or collections of any sales agent; require that all such
moneys or proceeds shall be kept separate and apart from all other funds and
assets and shall not be commingled with any other funds or assets prior to their
deposit or collection under this section; and require such other security of any
sales agent as he may deem advisable to ensure the timely deposit or collection
of moneys or proceeds to the credit of the Virginia Lottery Fund.
			Collection of moneys or proceeds &#8220;is or will be jeopardized or will
otherwise be delayed&#8221; when (i) a check, draft, or electronic funds
transfer to the credit of the Virginia Lottery Fund is dishonored as described
in subsection B; (ii) an independent auditor states that the lottery sales
agent&#8217;s financial condition raises substantial doubt about its ability to
continue as a going concern; or (iii) the lottery sales agent (a) closes for
business or fails to maintain normal business hours without reasonable
explanation, (b) has a credit record reflecting recent actions which cast doubt
as to its creditworthiness, (c) states it has or may have cash flow problems or
may be unable to meet its financial obligations, (d) states it may seek the
protection of the federal bankruptcy or state insolvency law, (e) refuses to
purchase additional lottery tickets or returns tickets ordered without good
cause, or (f) does any other act tending to prejudice or to render wholly or
partially ineffectual proceedings to collect moneys or proceeds which are or
will become due and payable to the Virginia Lottery Fund.

HISTORY: 1987, c. 531; 1990, c. 732; 1990, Sp. Sess., c. 1; 2006, c. 598; 2014,
c. 225.