Administrative Code

Virginia Administrative Code
Title 11. Gaming
Agency 5. Virginia Lottery Board
8/11/2020

Chapter 20. Administration Regulations

Part I
General Parameters

11VAC5-20-10. Definitions.

The following words and terms when used in any of the agency's regulations shall have the following meanings unless the context clearly indicates otherwise:

"Administrative Process Act" or "APA" means Chapter 40 (§ 2.2-4000 et seq.) of Title 2.2 of the Code of Virginia.

"Agency" means the Virginia Lottery created by the Virginia Lottery Law (Chapter 40 (§ 58.1-4000 et seq.) of Title 58.1 of the Code of Virginia).

"Appeal" means a proceeding initiated by a retailer, bidder, or offeror (for a contract negotiated on a sole source basis), contractor or individual for an informal conference or formal hearing contesting the director's decision (i) to refuse to issue or renew, to suspend or to revoke a lottery license; or (ii) regarding a procurement action.

"Bank" means any commercial bank, savings bank, savings and loan association, credit union, trust company, and any other type or form of banking institution organized under the authority of the Commonwealth of Virginia or of the United States of America that is designated by the State Treasurer to perform functions, activities or services in connection with the operations of the lottery for the deposit, handling and safekeeping of lottery funds, accounting for those funds and the safekeeping of records.

"Board" means the Virginia Lottery Board established by the Virginia Lottery Law.

"Conference" or "consultation" means a type of appeal in the nature of an informational or factual proceeding of an informal nature provided for in § 2.2-4019 of the Administrative Process Act.

"Conference officer" means the director, or a person appointed by the director, who is empowered to preside at informal conferences or consultations and to provide a recommendation, conclusion or decision in such matter.

"Consideration" means something of value given for a promise to make the promise binding. It is one of the essentials of a legal contract.

"Contract" means a binding agreement, enforceable by law, between two or more parties for the supply of goods or services.

"Depository" means any person, including a bonded courier service, armored car service, bank, central or regional offices of the agency, or any state agency that performs any or all of the following activities or services for the lottery:

1. The safekeeping and distribution of tickets to retailers;

2. The handling of lottery funds;

3. The deposit of lottery funds; or

4. The accounting for lottery funds.

"Director" means the Executive Director of the Virginia Lottery or his designee.

"Electronic funds transfer" or "EFT" means a computerized transaction that withdraws or deposits money from or to a bank account.

"Goods" means all material, equipment, supplies, printing, and automated data processing hardware and software.

"Hearing" means agency processes other than those informational or factual inquiries of an informal nature provided in §§ 2.2-4007 and 2.2-4019 of the Code of Virginia and includes only (i) opportunity for private parties to submit factual proofs in formal proceedings as provided in § 2.2-4009 of the Code of Virginia in connection with the making of regulations or (ii) a similar right of private parties or requirement of public agencies as provided in § 2.2-4020 of the Code of Virginia in connection with case decisions.

"Household" means members of a group who reside at the same address.

"Immediate family" means (i) a spouse and (ii) any other person residing in the same household as the officer or employee, who is a dependent of the officer or employee or of whom the officer or employee is a dependent.

"Inspection" means the close and critical examination of goods and services delivered to determine compliance with applicable contract requirements or specifications. It is the basis for acceptance or rejection.

"Legal entity" means an entity, other than a natural person, which has sufficient existence in legal contemplation that it can function legally, sue or be sued and make decisions through agents, as in the case of a corporation.

"Lottery" or "state lottery" means the lottery or lotteries established and operated pursuant to Chapter 40 (§ 58.1-4000 et seq.) of Title 58.1 of the Code of Virginia.

"Person" means a natural person and may extend and be applied to groups of persons, as well as a corporation, company, partnership, association, club, trust, estate, society, joint stock company, receiver, trustee, assignee, referee, or any other person acting in a fiduciary or representative capacity, whether appointed by a court or otherwise, and any combination of individuals, as well as all departments, commissions, agencies, and instrumentalities of the Commonwealth, including counties, cities, municipalities, political subdivisions, agencies and instrumentalities thereof.

"Procurement" means the process for obtaining goods or services, including all activities from planning and preparation to processing of a request through the processing of a final invoice for payment.

"Retailer and sales agent" means a person or business licensed by the agency as an agent to sell lottery tickets or shares.

"Sales," "gross sales," "annual sales" and similar terms mean total ticket sales including any discount allowed to a retailer for his compensation.

"Services" means any work performed by an independent contractor where the service rendered does not consist primarily of acquisition of equipment or materials, or the rental of equipment, materials and supplies.

"Sole source" means that only one source is practicably available to furnish a product or service.

"Surety bond" means an insurance agreement in which a third party agrees to be liable to pay a specified amount of money to the agency in the event the retailer fails to meet his obligations to the agency.

"Transaction" means any matter considered by any governmental or advisory agency, whether in a committee, subcommittee, or other entity of that agency or before the agency itself, on which official action is taken or contemplated.

"Vendor" means one who provides goods or services to the agency.

"Virginia Lottery Law" means Chapter 40 (§ 58.1-4000 et seq.) of Title 58.1 of the Code of Virginia.

Statutory Authority

§ 58.1-4007 of the Code of Virginia.

Historical Notes

Derived from VR447-01-2 § 1.1, eff. December 1, 1988; amended, Virginia Register Volume 6, Issue 6, eff. January 17, 1990; Volume 7, Issue 13, eff. April 24, 1991; Volume 8, Issue 24, eff. September 24, 1992; Volume 10, Issue 11, eff. March 23, 1994; Volume 19, Issue 15, eff. May 7, 2003; Volume 28, Issue 26, eff. September 26, 2012; Volume 31, Issue 3, eff. November 5, 2014.

11VAC5-20-20 to 11VAC5-20-50. [Repealed]

Historical Notes

Derived from VR447-01-2 §§ 1.2 to 1.5, eff. December 1, 1988; amended, Virginia Register Volume 6, Issue 6, eff. January 17, 1990; Volume 7, Issue 13, eff. April 24, 1991; Volume 8, Issue 24, eff. September 24, 1992; Volume 10, Issue 11, eff. March 23, 1994; repealed, Virginia Register Volume 13, Issue 3, eff. November 28, 1996.

11VAC5-20-60. Advertising.

A. Advertising may include, but is not limited to, print advertisements; radio and television advertisements; digital, electronic, and video advertisements; billboards; point of purchase materials; point-of-sale display materials; and Internet and social media.

B. Any lottery retailer may use his own advertising materials unless the agency objects thereto. The agency shall develop written guidelines for such materials.

C. The agency may provide information displays or other material to the retailer, who shall position the material so it can be seen easily by the general public.

D. The agency may produce special posters, brochures or flyers describing various aspects of the lottery and provide these to lottery retailers to post or distribute.

Statutory Authority

§ 58.1-4007 of the Code of Virginia.

Historical Notes

Derived from VR447-01-2 § 1.6, eff. December 1, 1988; amended, Virginia Register Volume 6, Issue 6, eff. January 17, 1990; Volume 7, Issue 13, eff. April 24, 1991; Volume 8, Issue 24, eff. September 24, 1992; Volume 10, Issue 11, eff. March 23, 1994; Volume 13, Issue 3, eff. November 28, 1996; Volume 19, Issue 15, eff. May 7, 2003; Volume 28, Issue 26, eff. September 26, 2012; Volume 31, Issue 3, eff. November 5, 2014.

11VAC5-20-70. (Repealed.)

Historical Notes

Derived from VR447-01-2 § 1.7, eff. December 1, 1988; amended, Virginia Register Volume 6, Issue 6, eff. January 17, 1990; Volume 7, Issue 13, eff. April 24, 1991; Volume 8, Issue 24, eff. September 24, 1992; Volume 10, Issue 11, eff. March 23, 1994; Volume 13, Issue 3, eff. November 28, 1996; Volume 19, Issue 15, eff. May 7, 2003; repealed, Virginia Register Volume 28, Issue 26, eff. September 26, 2012.

Part II
Banks and Depositories

11VAC5-20-80. Approval of banks.

A. The State Treasurer, with the concurrence of the director, and in accordance with applicable Treasury directives, shall approve a bank or banks to provide services to the agency.

B. A bank or banks shall serve as agent or agents for electronic funds transfers between the agency and lottery retailers as required by 11VAC5-20, 11VAC5-31, and 11VAC5-41 and by contracts between the agency, the State Treasury, retailers, and the banks.

Statutory Authority

§ 58.1-4007 of the Code of Virginia.

Historical Notes

Derived from VR447-01-2 § 2.1, eff. December 1, 1988; amended, Virginia Register Volume 6, Issue 6, eff. January 17, 1990; Volume 7, Issue 13, eff. April 24, 1991; Volume 8, Issue 24, eff. September 24, 1992; Volume 10, Issue 11, eff. March 23, 1994; Volume 13, Issue 3, eff. November 28, 1996; Volume 19, Issue 15, eff. May 7, 2003; Volume 31, Issue 3, eff. November 5, 2014.

11VAC5-20-90 to 11VAC5-20-110. [Repealed]

Historical Notes

Derived from VR447-01-2 §§ 2.2 to 2.4, eff. December 1, 1988; amended, Virginia Register Volume 6, Issue 6, eff. January 17, 1990; Volume 7, Issue 13, eff. April 24, 1991; Volume 8, Issue 24, eff. September 24, 1992; Volume 10, Issue 11, eff. March 23, 1994; Volume 13, Issue 3, eff. November 28, 1996; repealed, Virginia Register Volume 19, Issue 15, eff. May 7, 2003.

Part III
Lottery Board Procedures

11VAC5-20-120. Officers of the board.

A. The board shall have a chairman and a vice chairman who shall be elected by the board members.

B. The board will elect its officers annually at its January meeting, or as soon thereafter as reasonably possible, to serve for the calendar year.

Statutory Authority

§ 58.1-4007 of the Code of Virginia.

Historical Notes

Derived from VR447-01-2 § 3.1, eff. December 1, 1988; amended, Virginia Register Volume 6, Issue 6, eff. January 17, 1990; Volume 7, Issue 13, eff. April 24, 1991; Volume 8, Issue 24, eff. September 24, 1992; Volume 10, Issue 11, eff. March 23, 1994; Volume 13, Issue 3, eff. November 28, 1996; Volume 19, Issue 15, eff. May 7, 2003.

11VAC5-20-130. Board meetings.

A. The board will hold regular public meetings to receive information and recommendations from the director on the operation and administration of the lottery and to take official action. The board may also request information or comment from the public.

B. The board may hold special meetings as may be necessary to carry out its work. The chairman may call a special meeting at any time and shall call a special meeting when requested to do so by at least two board members or at the request of the director. Public notice of special meetings shall be given contemporaneously with the notice provided to all board members. Written notice is preferred but telephonic notice may be accepted by any board member in lieu of written notice.

C. A majority of board members shall constitute a quorum for the conduct of business at both regular and special meetings of the board. The chairman is eligible to vote at all meetings.

Statutory Authority

§ 58.1-4007 of the Code of Virginia.

Historical Notes

Derived from VR447-01-2 § 3.2, eff. December 1, 1988; amended, Virginia Register Volume 6, Issue 6, eff. January 17, 1990; Volume 7, Issue 13, eff. April 24, 1991; Volume 8, Issue 24, eff. September 24, 1992; Volume 10, Issue 11, eff. March 23, 1994; Volume 13, Issue 3, eff. November 28, 1996; Volume 19, Issue 15, eff. May 7, 2003.

11VAC5-20-140. Committees of the board.

A. The board chairman may, at his discretion, appoint such committees as he deems necessary to assist the board in its work.

B. A committee may be established to advise the board on a matter referred to it. A committee established to act in an advisory capacity to the board may include members of the general public. At least two members of the committee shall be board members and the chairman shall be a board member appointed by the board chairman.

1. A majority of the members appointed to an advisory committee shall constitute a quorum.

2. Recommendations of an advisory committee may be adopted by a majority vote of those present and voting. The chairman of an advisory committee shall be eligible to vote on all recommendations.

3. All actions of advisory committees shall be presented to the board in the form of recommendations.

Statutory Authority

§ 58.1-4007 of the Code of Virginia.

Historical Notes

Derived from VR447-01-2 § 3.3, eff. December 1, 1988; amended, Virginia Register Volume 6, Issue 6, eff. January 17, 1990; Volume 7, Issue 13, eff. April 24, 1991; Volume 8, Issue 24, eff. September 24, 1992; Volume 10, Issue 11, eff. March 23, 1994; Volume 13, Issue 3, eff. November 28, 1996; Volume 19, Issue 15, eff. May 7, 2003.

11VAC5-20-150. Conferences on denial, suspension, or revocation of a retailer's license.

The conduct of license appeal conferences will conform to the provisions of Article 3 (§ 2.2-4018 et seq.) of Chapter 40 of Title 2.2 of the Code of Virginia relating to case decisions.

1. An initial conference consisting of an informal fact finding process will be conducted by the conference officer to attempt to resolve the issue to the satisfaction of the parties involved.

2. If an appeal is not resolved through the informal fact finding process, at the request of the appellant, a formal hearing will be conducted by the board in public. Following the close of the evidence, the board may consider its decision in closed session. The board will then issue its decision on the case.

3. Upon receipt of the board's decision on the case, the appellant may elect to pursue court action in accordance with the provisions of the Administrative Process Act relating to court review.

Statutory Authority

§ 58.1-4007 of the Code of Virginia.

Historical Notes

Derived from VR447-01-2 § 3.4, eff. December 1, 1988; amended, Virginia Register Volume 6, Issue 6, eff. January 17, 1990; Volume 7, Issue 13, eff. April 24, 1991; Volume 8, Issue 24, eff. September 24, 1992; Volume 10, Issue 11, eff. March 23, 1994; Volume 13, Issue 3, eff. November 28, 1996; Volume 19, Issue 15, eff. May 7, 2003; Volume 28, Issue 26, eff. September 26, 2012.

11VAC5-20-160. Procedure for appealing a licensing decision.

A. Upon receiving a notice that (i) an application for a license or the renewal of a license has been denied by the director, or (ii) the director intends to or has already taken action to suspend or revoke a current license, the applicant or licensed retailer may appeal by filing a written notice of appeal requesting a conference on the licensing action. The notice of appeal shall be submitted within 30 days of receipt of the notice of the licensing action.

1. Receipt of a notice of the licensing action that is mailed in an envelope bearing a United States Postal Service postmark is presumed to have taken place not later than the third day following the day of mailing to the last known address of the applicant or licensed retailer. If the third day falls upon a day on which mail is not delivered by the United States Postal Service, the notice is presumed to have been received on the next business day. The "last known address" means the address shown on the application of an applicant or licensed retailer unless a more current address has been provided to the agency by the applicant or licensed retailer.

2. The notice of appeal will be timely if it bears a United States Postal Service postmark showing mailing on or before the 30th day prescribed in subdivision 1 of this subsection.

B. A notice of appeal may be mailed or hand delivered to the director at the Virginia Lottery headquarters office.

1. A notice of appeal delivered by hand will be timely only if received at the headquarters of the Virginia Lottery within the time allowed by subsection A of this section.

2. Delivery to any other Virginia Lottery office or to lottery sales personnel by hand or by mail is not sufficient.

3. The appellant assumes full responsibility for the method chosen to file the notice of appeal.

C. The notice of appeal shall state:

1. The decision of the director that is being appealed;

2. The legal and factual basis for the appeal;

3. The retailer's license number; and

4. Any additional information the appellant may wish to include concerning the appeal.

Statutory Authority

§ 58.1-4007 of the Code of Virginia.

Historical Notes

Derived from VR447-01-2 § 3.5, eff. December 1, 1988; amended, Virginia Register Volume 6, Issue 6, eff. January 17, 1990; Volume 7, Issue 13, eff. April 24, 1991; Volume 8, Issue 24, eff. September 24, 1992; Volume 10, Issue 11, eff. March 23, 1994; Volume 13, Issue 3, eff. November 28, 1996; Volume 19, Issue 15, eff. May 7, 2003; Volume 28, Issue 26, eff. September 26, 2012; Volume 31, Issue 3, eff. November 5, 2014.

11VAC5-20-170. Procedures for conducting informal fact-finding licensing conferences.

A. The conference officer will conduct an informal fact-finding conference with the appellant for the purpose of resolving the licensing action at issue.

B. The conference officer will hold the conference as soon as possible but not later than 30 days after the notice of appeal is filed, unless an alternate date is designated by the conference officer or his designee and accepted by the appellant. A notice setting out the conference date, time, and location will be sent to the appellant, by certified mail, return receipt requested, at least 10 days before the day set for the conference, unless a shorter time is agreed to by the appellant.

C. A conference may be conducted by telephone, at the option of the appellant.

D. The conferences shall be informal.

1. The conferences will be electronically recorded. The recordings will be kept until the time limit for any subsequent appeal has expired.

2. A court reporter may be used. The court reporter shall be paid by the person who requested him. If the appellant elects to have a court reporter, a transcript shall be provided to the agency. The transcript shall become part of the agency's records.

3. The appellant may appear in person or may be represented by counsel to present his facts, argument, or proof in the matter to be heard and may request other parties to appear to present testimony.

4. The agency will present its facts in the case and may request other parties to appear to present testimony.

5. Questions may be asked by any of the parties at any time during the presentation of information subject to the conference officer's prerogative to regulate the order of presentation in a manner that, in his sole discretion, best serves the interest of fairly developing the facts.

6. The conference officer may exclude information at any time that he believes, in his sole discretion, is not germane or that repeats information already received.

7. The conference officer shall declare the conference completed when the time established by the conference officer has expired.

E. Normally, the conference officer shall issue his decision within 15 days after the conclusion of an informal conference. However, for a conference with a court reporter, the conference officer shall issue his decision within 15 days after receipt of the transcript of the conference. In all cases the agency shall comply with the APA. The decision will be in the form of a letter to the appellant summarizing the case and setting out his decision on the matter. The decision will be sent to the appellant by certified mail, return receipt requested.

F. After receiving the conference officer's decision on the informal conference, the appellant may elect to appeal to the board for a formal hearing on the licensing action. The request for appeal shall:

1. Be submitted in writing within 15 days of receipt of the conference officer's decision on the informal conference.

2. Be mailed or hand delivered to the chairman of the board at the headquarters of the Virginia Lottery.

3. Be governed by the same procedures in 11VAC5-20-160 B for filing the original notice of appeal.

4. State:

a. The decision of the conference officer that is being appealed;

b. The legal and factual basis for the appeal;

c. The retailer's license number; and

d. Any additional information the appellant may wish to include concerning the appeal.

Statutory Authority

§ 58.1-4007 of the Code of Virginia.

Historical Notes

Derived from VR447-01-2 § 3.6, eff. December 1, 1988; amended, Virginia Register Volume 6, Issue 6, eff. January 17, 1990; Volume 7, Issue 13, eff. April 24, 1991; Volume 8, Issue 24, eff. September 24, 1992; Volume 10, Issue 11, eff. March 23, 1994; Volume 13, Issue 3, eff. November 28, 1996; Volume 19, Issue 15, eff. May 7, 2003; Volume 28, Issue 26, eff. September 26, 2012; Volume 31, Issue 3, eff. November 5, 2014.

11VAC5-20-180. Procedures for conducting formal licensing hearings.

A. The board will conduct a formal hearing at its next regularly scheduled meeting following the receipt of a notice of appeal on a licensing action if the date of the scheduled meeting permits the required 10 days notice to the appellant or at a date to be determined by the chairman of the board and accepted by the appellant.

B. A majority of members of the board is required to hear an appeal. If the chairman and vice chairman of the board are not present, the members present shall choose one from among them to preside over the hearing.

C. The board chairman, at his discretion, may designate a committee of the board to hear licensing appeals and act on its behalf. Such committee shall have at least three members who will hear the appeal on behalf of the board. If the chairman of the board is not present, the members of the committee shall choose one from among them to preside over the hearing.

D. A notice setting the hearing date, time, and location will be sent to the appellant by certified mail, return receipt requested, at least 10 days before the day set for the hearing, unless a shorter time is agreed to by the appellant.

E. The hearing shall be conducted in accordance with the provisions of Article 3 (§ 2.2-4018 et seq.) of the APA and shall be open to the public.

1. The hearing will be electronically recorded and the recording will be kept until any time limits for any subsequent court appeals have expired.

2. A court reporter may be used. The court reporter shall be paid by the person who requested him. If the appellant elects to have a court reporter, a transcript shall be provided to the agency. The transcript shall become part of the agency's records.

3. The provisions of §§ 2.2-4020 through 2.2-4023 of the APA shall apply with respect to the rights and responsibilities of the appellant and of the agency.

F. Normally, the board will issue its written decision within 21 days of the conclusion of the hearing. However, for a hearing with a court reporter, the board will issue its written decision within 21 days of receipt of the transcript of the hearing. In all cases the agency shall comply with the APA.

1. A copy of the board's written decision will be sent to the appellant by certified mail, return receipt requested. The original written decision shall be retained by the agency and become a part of the case file.

2. The written decision will contain:

a. A statement of the facts to be called "Findings of Facts";

b. A statement of conclusions to be called "Conclusions" and to include as much detail as the board feels is necessary to set out the reasons and basis for its decision; and

c. A statement, to be called "Decision and Order," which sets out the board's decision and order in the case.

G. After receiving the board's decision on the case, the appellant may elect to pursue court review as provided for in the APA.

Statutory Authority

§ 58.1-4007 of the Code of Virginia.

Historical Notes

Derived from VR447-01-2 § 3.7, eff. December 1, 1988; amended, Virginia Register Volume 6, Issue 6, eff. January 17, 1990; Volume 7, Issue 13, eff. April 24, 1991; Volume 8, Issue 24, eff. September 24, 1992; Volume 10, Issue 11, eff. March 23, 1994; Volume 13, Issue 3, eff. November 28, 1996; Volume 19, Issue 15, eff. May 7, 2003; Volume 28, Issue 26, eff. September 26, 2012; Volume 31, Issue 3, eff. November 5, 2014.

11VAC5-20-190. [Repealed]

Historical Notes

Derived from VR447-01-2 § 3.8, eff. December 1, 1988; amended, Virginia Register Volume 6, Issue 6, eff. January 17, 1990; Volume 7, Issue 13, eff. April 24, 1991; Volume 8, Issue 24, eff. September 24, 1992; Volume 10, Issue 11, eff. March 23, 1994; repealed, Virginia Register Volume 13, Issue 3, eff. November 28, 1996.

Part IV
Procurement

11VAC5-20-200. Procurement in general.

The Virginia Lottery will purchase goods or services in accordance with procedures established by the board, after consultation with the director, pursuant to Chapter 40 (§ 58.1-4000 et seq.) of Title 58.1 of the Code of Virginia.

Statutory Authority

§ 58.1-4007 of the Code of Virginia.

Historical Notes

Derived from VR447-01-2 § 4.1, eff. December 1, 1988; amended, Virginia Register Volume 6, Issue 6, eff. January 17, 1990; Volume 7, Issue 13, eff. April 24, 1991; Volume 8, Issue 24, eff. September 24, 1992; Volume 10, Issue 11, eff. March 23, 1994; Volume 13, Issue 3, eff. November 28, 1996; Volume 22, Issue 25, eff. November 6, 2006; Volume 28, Issue 26, eff. September 26, 2012; Volume 31, Issue 3, eff. November 5, 2014.

11VAC5-20-210 to 11VAC5-20-520. [Repealed]

Historical Notes

Derived from VR447-01-2 §§ 4.2 to 5.9, eff. December 1, 1988; amended, Virginia Register Volume 6, Issue 6, eff. January 17, 1990; Volume 7, Issue 13, eff. April 24, 1991; Volume 8, Issue 24, eff. September 24, 1992; Volume 10, Issue 11, eff. March 23, 1994; Volume 13, Issue 3, eff. November 28, 1996; Volume 19, Issue 15, eff. May 7, 2003; repealed, Virginia Register Volume 22, Issue 25, eff. November 6, 2006.



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