CODE OF VIRGINIA

UNCLAIMED PRIZES (§ 58.1-4020)

A. Unclaimed prizes for a winning ticket or share shall be retained by the
Director for the person entitled thereto for 180 days after the drawing in which
the prize was won in the case of a drawing prize and for 180 days after the
announced end of the lottery game in the case of a prize determined in any
manner other than by means of a drawing. If no claim is made for the prize
within the 180 days, the Director shall deem such prize forfeited by the person
entitled to claim such winnings.

B. All prizes deemed forfeited pursuant to subsection A shall be paid into the
Literary Fund. The Director may develop procedures, to be approved by the
Auditor of Public Accounts, for estimating the cumulative total of such
unclaimed prizes in any lottery game in lieu of specifically identifying
unclaimed prizes where such specific identification would not be cost effective.
The Director, within 60 days after the end of each 180-day retention period,
shall report the total value of prizes forfeited at the end of such period to
the Comptroller, who shall promptly transfer the total of such prizes to the
Literary Fund. The total value of prizes forfeited during the fiscal year shall
be audited by the Auditor of Public Accounts in accordance with § 58.1-4023. In
the case of a prize payable over time on one or more winning tickets, if one or
more winning tickets is not claimed within the 180-day redemption period, the
Department shall transfer the then current monetary value of such portion of the
prize remaining unclaimed to the Literary Fund in accordance with procedures
approved by the State Treasurer. “Current monetary value” shall be
determined by the net proceeds from the sale of that portion of jackpot
securities allocated to the unclaimed winner plus the amount of the initial cash
payment.

C. Subsection B of this section shall not apply to prizes of $ 25 or less
resulting from any lottery game other than a lottery game in which a drawing
determined the prize. The Board shall adopt regulations for the disposition of
all such unclaimed prizes of $ 25 or less not resulting from a drawing. Such
disposition shall be directed in whole or in part to either the Virginia Lottery
Fund or to other forms of compensation to licensed sales agents.

D. For purposes of this section, “prize” refers to a cash prize. In
the case of a prize payable over time and not as a lump sum payment,
“prize” means the present cash value of the prize, not the value
paid over time.

E. In accordance with the provisions of the Soldiers’ and Sailors’
Civil Relief Act of 1940 (50 App. U.S.C.A. § 525), any person whose unclaimed
prize was deemed forfeited pursuant to subsection A while he was in active
military service may claim such forfeited prize by presenting his winning ticket
to the Director no later than 180 days after his discharge from active military
service. Within 30 days of such presentation, the Director shall verify the
claim and report the verification to the Comptroller. The Comptroller shall
promptly pay the verified claim first from funds available in the Unclaimed
Property Trust Fund in § 3-2.00 of the general appropriations act; if such
funds are insufficient, then, from any undesignated, unreserved year-end balance
of the general fund. All verified claims shall be paid in accordance with the
Board’s rules and regulations then in effect regarding the manner of
payment of prizes to the holders of winning tickets or shares.

HISTORY: 1987, c. 531; 1989, c. 478; 1992, c. 449; 1994, c. 49; 1996, c. 975;
2014, c. 225.