58.1-4007 - Powers of the Board.

§ 58.1-4007. Powers of the Board.

A. The Board shall have the power to adopt regulations governing theestablishment and operation of a lottery. The regulations governing theestablishment and operation of the lottery shall be promulgated by the Boardafter consultation with the Director. Such regulations shall be in accordancewith the Administrative Process Act (§ 2.2-4000 et seq.). The regulationsshall provide for all matters necessary or desirable for the efficient,honest and economical operation and administration of the lottery and for theconvenience of the purchasers of tickets or shares, and the holders ofwinning tickets or shares. The regulations, which may be amended, repealed orsupplemented as necessary, shall include, but not be limited to, thefollowing:

1. The type or types of lottery or game to be conducted in accordance with §58.1-4001.

2. The price or prices of tickets or shares in the lottery.

3. The numbers and sizes of the prizes on the winning tickets or shares,including informing the public of the approximate odds of winning and theproportion of lottery revenues (i) disbursed as prizes and (ii) returned tothe Commonwealth as net revenues.

4. The manner of selecting the winning tickets or shares.

5. The manner of payment of prizes to the holders of winning tickets orshares.

6. The frequency of the drawings or selections of winning tickets or shareswithout limitation.

7. Without limitation as to number, the type or types of locations at whichtickets or shares may be sold.

8. The method to be used in selling tickets or shares.

9. The advertisement of the lottery in accordance with the provisions ofsubsection E of § 58.1-4022.

10. The licensing of agents to sell tickets or shares who will best serve thepublic convenience and promote the sale of tickets or shares. No person underthe age of 18 shall be licensed as an agent. A licensed agent may employ aperson who is 16 years of age or older to sell or otherwise vend tickets atthe agent's place of business so long as the employee is supervised in theselling or vending of tickets by the manager or supervisor in charge at thelocation where the tickets are being sold. Employment of such person shall bein compliance with Chapter 5 (§ 40.1-78 et seq.) of Title 40.1.

11. The manner and amount of compensation, if any, to be paid licensed salesagents necessary to provide for the adequate availability of tickets orshares to prospective buyers and for the convenience of the public.Notwithstanding the provisions of this subdivision, the Board shall not berequired to approve temporary bonus or incentive programs for payments tolicensed sales agents.

12. Apportionment of the total revenues accruing from the sale of tickets orshares and from all other sources and establishment of the amount of thespecial reserve fund as provided in § 58.1-4022 of this chapter.

13. Such other matters necessary or desirable for the efficient andeconomical operation and administration of the lottery.

The Department shall not be subject to the provisions of Chapter 43 (§2.2-4300 et seq.) of Title 2.2; however, the Board shall promulgateregulations, after consultation with the Director, relative to departmentalprocurement which include standards of ethics for procurement consistent withthe provisions of Article 6 (§ 2.2-4367 et seq.) of Chapter 43 of Title 2.2and which ensure that departmental procurement will be based on competitiveprinciples.

The Board shall have the power to advise and recommend, but shall have nopower to veto or modify administrative decisions of the Director. However,the Board shall have the power to accept, modify or reject any revenueprojections before such projections are forwarded to the Governor.

B. The Board shall carry on a continuous study and investigation of thelottery throughout the Commonwealth to:

1. Ascertain any defects of this chapter or the regulations issued hereunderwhich cause abuses in the administration and operation of the lottery and anyevasions of such provisions.

2. Formulate, with the Director, recommendations for changes in this chapterand the regulations promulgated hereunder to prevent such abuses and evasions.

3. Guard against the use of this chapter and the regulations promulgatedhereunder as a subterfuge for organized crime and illegal gambling.

4. Ensure that this law and the regulations of the Board are in such form andare so administered as to serve the true purpose of this chapter.

C. The Board shall make a continuous study and investigation of (i) theoperation and the administration of similar laws which may be in effect inother states or countries, (ii) any literature on the subject which may bepublished or available, (iii) any federal laws which may affect the operationof the lottery, and (iv) the reaction of Virginia citizens to the potentialfeatures of the lottery with a view to recommending or effecting changes thatwill serve the purpose of this chapter.

D. The Board shall hear and decide an appeal of any denial by the Director ofthe licensing or revocation of a license of a lottery agent pursuant tosubdivision 10 of subsection A of this section and subdivision 5 ofsubsection B of § 58.1-4006 of this chapter.

E. The Board shall have the authority to initiate procedures for theplanning, acquisition, and construction of capital projects as set forth inArticle 4 (§ 2.2-1129 et seq.) of Chapter 11 and Article 3 (§ 2.2-1819 etseq.) of Chapter 18 of Title 2.2.

(1987, c. 531; 1988, c. 788; 1989, c. 228; 1990, c. 732; 1999, c. 716; 2004,c. 630; 2006, c. 598; 2008, c. 302.)