Section 140. Deposit of lottery receipts; interest and penalty for late payment; dishonored EFT transactions or checks

A. Payments shall be due from retailers as specified by the director in accordance with agency policies.

B. Any retailer who fails to make payment when payment is due will be contacted by the agency and instructed to make immediate deposit of the funds due. If the retailer is not able to deposit the necessary funds or if the item is returned to the department unpaid for a second time, the retailer's license may be inactivated. If inactivated, the license will not be reactivated until payment is made by cashier's check, certified check or EFT transaction, and if the retailer is deemed a continuing credit risk by the agency, not until an informal conference is held to determine if the licensee is able and willing to meet the terms of his retailer contract. Additionally, interest may be charged on the moneys due plus a $25 penalty. The interest charge will be equal to the "Underpayment Rate" established pursuant to § 58.1-15 of the Code of Virginia. The interest charge will be calculated beginning the date following the retailer's due date for payment through the day preceding receipt of the late payment by the agency for deposit.

C. In addition to the penalty authorized by subsection B of this section, the director may assess a $25 service charge against any retailer whose payment through EFT transaction or by check is dishonored.

D. The service charge, interest, and penalty charges may be waived if it is determined by the agency that the event that otherwise would result in the assessment of a service charge, interest, or penalty is not in any way the fault of the lottery retailer.

Historical Notes

Derived from Volume 19, Issue 15, eff. May 7, 2003; amended, Virginia Register Volume 31, Issue 03, eff. November 5, 2014.

Statutory Authority

§ 58.1-4007 of the Code of Virginia.