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Oregon Bulletin

January 1, 2013

Oregon State Lottery, Chapter 177

Rule Caption: Clarifies top $1,000 prize with multiple winners; Selling bonus; Claiming prize Lottery Headquarters; Other changes.

Adm. Order No.: LOTT 8-2012

Filed with Sec. of State: 11-30-2012

Certified to be Effective: 12-16-12

Notice Publication Date: 11-1-12

Rules Amended: 177-094-0080, 177-094-0085

Rules Repealed: 177-094-0080(T), 177-094-0085(T)

Subject: The Oregon State Lottery adopted permanent rules to establish the maximum annual payout when there are more than three winning tickets for the Win for Life $1,000 a week top prize in a single drawing, the calculation of the retailer selling bonus under such circumstances, and to require in-person presentation of a winning ticket for the Win for Life top prize of $1,000 a week for life at Lottery Headquarters in Salem, Oregon.

 The rule making further specifies that only one natural person may sign a Win for Life top prize of $1,000 per week for life ticket; that ownership of a winning ticket for a Win for Life top prize of $1,000 per week cannot be relinquished; specifies the process for claiming the Win for Life top prize by the personal representative of the estate of an owner who dies before the prize is claimed; and specifies that annual payments of the Win for Life top prize of $1,000 per week for life will be paid on the anniversary date of the validation or on the next Lottery business day if the anniversary date is a Saturday, Sunday, holiday, or furlough closure day.

Rules Coordinator: Mark W. Hohlt—(503) 540-1417

177-094-0080

Prizes

(1) General: Prizes for a winning ticket are determined by matching each horizontal set in the ticket’s game play with the winning numbers from the relevant drawing. [Table not included. See ED. NOTE.]

(2) Prize Percentage Payout: The number of prizes for the Win for LifeSM game is not predetermined by the Lottery. The overall prize percentage payout for the Win for LifeSM game is estimated at approximately 65% over time, but the actual prize payout may vary from day-to-day and year-to-year due to factors that include, but are not limited to, the numbers of players participating each day and the number of winning wagers.

(3) Disputes: In the event of a dispute over the value of a prize or whether a ticket contains winning numbers or is a winning ticket, the Director’s determination is controlling.

(4) Multiple Prizes:

(a) Subject to the validation requirements in OAR 177-094-0060, for each drawing, a player may receive multiple prizes on each ticket for which a ticket containing a winning game play is eligible.

(b) Only the top-prize associated with each set of numbers within the Win for LifeSM, $50,000, $20,000, and $10,000 prize categories shall be paid.

(5) Claiming a Prize: Prize payments must be claimed, and shall be made, in accordance with the provisions of OAR 177-070-0025. Notwithstanding OAR 177-070-0025(2) and subject to section (7) of this rule, a person who claims a Win for LifeSM top prize of $1,000 a week for life must present the winning ticket and completed claim form in person, at Lottery Headquarters in Salem, Oregon.

(6) Payment of Prizes: Upon validation of a winning ticket, a prize resulting from that winning ticket shall be paid to the prize winner in one lump-sum except for the Win for LifeSM prize of $1,000 per week for life.

(7) Win for LifeSM Top Prize:

(a) General: The Win for LifeSM top prize is $1000 per week for life. Only one natural person may own a winning ticket for the Win for LifeSM top prize of $1,000 per week for life, and claim the Win for LifeSM top prize of $1,000 per week for life. Notwithstanding OAR 177-046-0110(6), a winning ticket of the Win for LifeSM top prize cannot be owned jointly and the top prize will only be paid to the owner of the winning ticket.

(b) Ownership: Only one natural person may sign a Win for LifeSM top prize of $1000 per week for life winning ticket. A winning ticket of a Win for LifeSM top prize is owned by the natural person who first signs the ticket and cannot be claimed by multiple owners. In the event a single winning ticket is signed by more than one natural person, the natural persons who signed the ticket must identify the natural person who first signed the ticket on a form provided by the Lottery.

(A) No Relinquishment: Notwithstanding OAR 177-024-0110(6)(c), ownership of a winning ticket of a Win for LifeSM top prize of $1000 per week for life cannot be relinquished.

(B) Deceased Signatory: If the owner of a winning ticket of a Win for LifeSM top prize dies before the prize is claimed, the personal representative of the owner’s estate as appointed by a court, may claim the prize on behalf of the owner’s estate. The maximum prize is $260,000 as set forth in subsection (f) and will be paid by the Lottery to the owner’s estate in one lump sum.

(c) Payment Options: The Win for LifeSM top prize is $1,000 per week for life and shall be paid, based upon a selection made by the prize winner, either as:

(A) Weekly: A prize payment of $1000 each week beginning on the date prize payment is initiated upon validation of the winning ticket and thereafter on the same day each week, or if such day falls on a non-business day, then the next business day; or

(B) Annually: A payment of $52,000 paid annually beginning on the date prize payment is initiated upon validation of the winning ticket and thereafter on the anniversary date of the first payment, or if such date falls on a non-business day, then the first business day following the anniversary date of the first payment.

(d) Payments to Cease upon Winner’s Death: The Win for LifeSM top prize of $1,000 per week for life will be paid to the prize winner until such time as the prize winner dies at which time all further prize payments shall cease.

(e) Five-Year Guaranteed Payment: Notwithstanding subsection (d) of this section, if the prize winner dies within five years of the date of prize validation, the Lottery shall pay any remaining prize payments the prize winner would have received within the first five years after prize validation in one lump sum to the individual designated on a beneficiary designation form or to the prize winner’s estate.

(f) Maximum Five-Year Guaranteed Payment: Notwithstanding subsections (d) and (e) of this section, for Win for LifeSM tickets purchased on or after December 1, 2010, if the prize winner dies within five years of the date of prize validation, the Lottery shall pay any remaining prize payment the prize winner would have received within the first five years after prize validation in one lump sum, up to a maximum of $260,000, to the individual designated on a beneficiary designation form or to the prize winner’s estate.

(g) Election of Payment Schedule:

(A) Limitations of Election: At the time of the validation of a winning Win for LifeSM ticket for the top prize of $1000 per week for life, the prize winner of the top prize must elect either the weekly or annual prize payment schedule described in subsection (b) of this section. A prize winner who elects the annual payment schedule cannot subsequently convert to the weekly payment schedule. The election of the annual payment schedule is irrevocable. A prize winner who elected the weekly payment schedule may convert to the annual payment schedule at any time, and the Lottery will issue payment to the prize winner for the sum of the remaining weekly payments from that date to the next anniversary date. Subsequent annual payments will be made on the anniversary date.

(B) Election When Child Support Owed: Notwithstanding subsection (A) of this subsection and subsection (g) of this section, when a search of delinquent child support obligors performed pursuant to ORS 461.715 and OAR 177-010-0090 Child Support Validation Check results in a positive match with the prize winner and the Division of Child Support of the Department of Justice (DOJ) or its successor initiates garnishment proceedings, the prize winner of the Win for LifeSM top prize of $1,000 per week for life has no payment options from which to select and will be placed on the annual payment schedule as described in subsection (7)(b)(B) of this section. This placement on the annual payment schedule is irrevocable.

(C) Conversion to Annual Payment Schedule upon Garnishment from Department of Justice: Upon receipt of garnishment proceedings from DOJ directed to the Lottery for monies due or to become due to a prize winner receiving weekly payments under the Win for LifeSM top prize of $1000 per week for life, the Lottery will place that prize winner on the annual payment schedule as described in subsection (7)(b)(B) of this section. Conversion of the prize winner’s payment schedule from weekly to annual under this section of the rule is irrevocable. The Lottery shall make payments to such a prize winner as follows:

(i) Payment Less Garnishment Amounts: Within a reasonable time after the disposition of the garnishment proceeding, the Lottery shall pay the prize winner the sum of the prize winner’s weekly payments from the date the Lottery placed the prize winner’s payments on hold to the prize winner’s next anniversary date less any amounts withheld pursuant to the garnishment proceedings and applicable tax laws.

(ii) Subsequent Payments: The Lottery shall make any subsequent annual payments, less any amounts withheld pursuant to the garnishment proceedings and applicable tax laws, on the anniversary date of the validation of the prize or on the next business day following if the anniversary date is a Saturday, Sunday, holiday or furlough closure day.

(h) Limitation on Prize Amount for Multiple Top Prize Winning Tickets: Where there are more than three winning tickets in a single Win for LifeSM drawing, the maximum combined annual top prize payout for a single Win for LifeSM drawing is $156,000.

(A) More Than Three Winning Tickets: Notwithstanding the $1,000 per week amount referred to in this rule, if there are more than three winning tickets for a Win for LifeSM top prize of $1,000 per week for life in a single drawing, the annual top prize payment per winning ticket shall be limited to $156,000 divided by the number of winning tickets of the Win for LifeSM top prize in that drawing.

(B) Example: For example, if there are four Win for LifeSM top prize winning tickets in a single drawing, the annual top prize amount is calculated by dividing 4 into $156,000 which equals $39,000 as the annual prize payment amount per each winning ticket.

(C) Payment: Notwithstanding subsection (g) of this section, the prize winner will be paid on an annual prize payment schedule. This placement on the annual prize payment schedule is irrevocable.

(D) Effect of Subsequent Events: Subsequent events, including, but not limited to, the death of one of the prize winners, shall not alter the other prize winners’ original pro rata share of the calculated prize amount.

(i) Initiation of Payment: Prize payment is initiated upon validation of a winning ticket.

(j) Electronic Fund Transfer: After the initial prize payment issued to a Win for LifeSM top prize winner, the Lottery shall pay both weekly and annualized Win for LifeSM prize installments via electronic funds transfer in the usual course of Lottery business.

(k) Annual Affidavit Required:

(A) General: Once each year and no earlier than thirty days prior to the anniversary of the original validation date, a prize winner of a Win for LifeSM top prize of $1,000 per week for life shall provide the Lottery with an affidavit on a form provided by the Lottery, signed by the prize winner, bearing the seal of a notary public, verifying the prize winner is living, containing the prize winner’s current address, and a bank account number to which the prize shall be paid.

(B) Termination of Prize: If a prize winner of a Win for LifeSM prize of $1,000 per week for life does not provide the Lottery with the affidavit described in subsection (i)(A) of this section, then the Lottery shall not make further prize payments to the prize winner. If the failure of a prize winner to provide the affidavit continues to the next anniversary of the validation date, the remainder of the prize shall be terminated.

(C) Exception: Notwithstanding paragraph (B) of this subsection, when it is reasonable and prudent to do so based on the facts underlying a prize winner’s failure to provide an annual affidavit, the Director may authorize prize payment even though an affidavit has not been provided or is not timely provided. No interest shall be paid by the Lottery on the value of the prize during the period a prize remained unclaimed.

(l) Death During a Payment Year: If a prize winner of a Win for LifeSM top prize of $1,000 per week for life dies after five years have elapsed from the date of validation and if a sequence of weekly prize payments are paid over the course of the year in which the prize winner dies or if a single annual prize payment has been paid prospectively to the winning player for that year, the prize could be overpaid. It is the policy of the Lottery that the difference between the prize that should have been paid based on the date of the death of the prize winner relative to the anniversary date of validation of the prize and the prize amount that was actually paid during the year in which the prize winner died will not be subject to reimbursement by the Lottery. Any prize payment paid after the year in which the prize winner dies relative to the anniversary date of validation of the prize shall be subject to reimbursement to the Lottery.

(m) Non-Assignability: A Win for LifeSM top prize of $1,000 per week for life is based on the unknown duration of the life of the prize winner and is therefore a prize of unspecified value and uncertain periodicity. Consequently, a Win for LifeSM top prize of $1,000 per week for life is not a future periodic prize payment as described in ORS 461.253(1) and cannot be assigned, gifted, sold, or transferred in any manner from the winner to another person or entity except under the circumstances as described in subsection (d) of this rule.

[ED. NOTE: Tables referenced are available from the agency.]

Stat. Auth.: OR Const. Art. XV, Sec. 4(4) & ORS 461
Stats. Implemented: ORS 461
Hist.: LOTT 11-2000, f. & cert. ef. 12-1-00; LOTT 1-2001(Temp), f. & cert. ef. 1-22-01 thru 7-21-01; LOTT 7-2001, f. 4-25-01, cert. ef. 4-26-01; LOTT 8-2002(Temp), f. & cert. ef. 7-15-02 thru 1-3-03; LOTT 20-2002, f. & cert. ef. 9-30-02; LOTT 11-2010, f. 11-19-10, cert. ef. 12-1-10; LOTT 4-2012(Temp), f. & cert. ef. 6-29-12 thru 12-21-12; LOTT 8-2012, f. 11-30-12, cert. ef. 12-16-12

177-094-0085

Retailer Selling Bonus

(1) General: For the purposes of OAR 177-040-0025(2)(a), a retailer who sells any winning and validated Win for LifeSM top prize of $1,000 per week for life shall receive a bonus of $13,000 which is based on one percent (1%) of an estimated prize value of $52,000 per year paid over a period of 25 years ($52,000 x 25 = $1,300,000 x .01 = $13,000).

(2) Multiple Top Prize Winning Tickets: Notwithstanding section (1) of this rule, if the Win for LifeSM top prize of $1,000 per week for life is reduced in accordance with OAR 177-094-0080(7)(g), the selling retailer shall receive a bonus based on one percent of the actual prize amount paid over a period of 25 years. For example, if the prize value paid is $31,200 per year, the bonus shall be $31,200 x 25 = $780,000 x .01 = $7,800.

Stat. Auth.: OR Const. Art. XV, Sec. 4(4) & ORS 461
Stats. Implemented: ORS 461
Hist.: LOTT 11-2000, f. & cert. ef. 12-1-00; LOTT 18-2002(Temp), f. 9-6-02, cert. ef. 9-9-02 thru 3-6-03; LOTT 29-2002, f. & cert. ef. 11-25-02; LOTT 4-2012(Temp), f. & cert. ef. 6-29-12 thru 12-21-12; LOTT 8-2012, f. 11-30-12, cert. ef. 12-16-12

Notes
1.) This online version of the OREGON BULLETIN is provided for convenience of reference and enhanced access. The official, record copy of this publication is contained in the original Administrative Orders and Rulemaking Notices filed with the Secretary of State, Archives Division. Discrepancies, if any, are satisfied in favor of the original versions. Use the OAR Revision Cumulative Index found in the Oregon Bulletin to access a numerical list of rulemaking actions after November 15, 2012.

2.) Copyright 2013 Oregon Secretary of State: Terms and Conditions of Use

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