Current through Register Vol. XLI, No. 36, September 6, 2024
Section 179-1-3 - Financial Administration3.1. Collection of Accounts - Agents and retailers shall establish private banking accounts in which to deposit payments for the purchase of lottery tickets or receipts from draw sales.3.1.a. The funds in each of the accounts established under this section shall be swept by electronic funds transfer ("EFT") and/or an Automated Clearing House ("ACH") transfer to an account of the State Treasurer as provided for in paragraph 3.2.b.1 of this section.3.1.b. The Director may authorize other methods of collection such as intra-governmental transfers in the case of other state agencies.3.2. State Lottery Fund - The Director shall implement the State Lottery Fund which shall consist of a group of accounts within the State Treasury.3.2.a. The accounts shall be established in accordance with applicable provisions of state law, and any applicable rules of the State Treasurer.3.2.b. In implementing the State Lottery Fund, the following accounts shall be used: 3.2.b.1. Revenues and Transfers Account - This account shall consist of all revenue received from the sale of lottery tickets. Transfers shall be made from this account for prizes, net profit, and operation and administration expenses, in amounts and for the purposes established by W.Va. Code § 29-22-18. Net profits shall be transferred to the accounts to which the Legislature has appropriated them. If net profits for any particular year exceed the amount appropriated by the Legislature, the excess funds shall be held in this account until such time as they are appropriated. The funds in this account shall be invested in the State Consolidated Fund until the point of transfer and are interest bearing.3.2.b.2. Operation and Administration Expenses Account - This account shall consist of transfers made from the Revenues and Transfers Account not to exceed fifteen percent (15%) of net lottery revenue. In the event that the balance of this account is equal to or greater than two hundred fifty thousand dollars ($250,000), any excess over that amount shall be considered and allocated as net profit.3.2.b.3. Jackpot Prize Trust Account - This account shall consist of jackpot prizes accumulated for the purpose of buying annuities for the payment of prizes due the winners over a period of years. Also, as the annuities mature, the funds shall be held in this account until payment is made to the winners.3.3. Prize Disbursement Account - The Director shall establish a Prize Disbursement Account, in a private banking institution, which shall permit the immediate payment of lottery prizes, by check, EFT and/or an ACH payment, to the winners. 3.3.a. The total expenditures from the Prize Disbursement Account and the Jackpot Prize Trust Account combined with any prizes paid by the sales agents and retailers, shall be a minimum annual average of forty-five percent (45%) of gross amount received.3.3.b. The Prize Disbursement Account shall be a demand deposit account established by the Director in accordance with applicable law and rules of the State Treasurer funded daily by transfers from the Revenue and Transfers Account.3.3.c. Access to the account for purposes of drawing checks shall be limited to those persons expressly authorized by the Director to operate secure check writing machines and who are provided security keys and computer keys for their operation incident to their official duties.3.3.d. All checks issued from the Prize Disbursement Account shall prominently display the logo of the West Virginia Lottery.3.3.e. Checks in payment of prizes drawn upon the Prize Disbursement Account may be issued under the signature of the Director or the authorized facsimile of his or her signature.3.3.f. The Director may also cause checks to be issued from the Prize Disbursement Account to lottery sales agents and lottery retailers to fulfill obligations of a bonus-incentive plan.3.3.g. The agency shall settle retailer and agent accounts no less frequently than weekly, unless the Director specifies a different time.3.3.h. The Director may make payments from the Prize Disbursement Account to sales agents and retailers for purposes of refund or credit for unsold lottery tickets, other lottery ticket sales adjustments or instant game account adjustments.