71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 804
B-Engrossed
Senate Bill 374
Ordered by the House May 24
Including Senate Amendments dated March 21 and House Amendments
dated May 24
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Governor John A. Kitzhaber,
M.D., for Director of the Oregon State Lottery)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
Prohibits video lottery game wager by or payment of video
lottery game prize to person under 21 years of age.
Prohibits possession of ticket or share in lottery game by
person under 18 years of age. Prohibits control or possession of
credit or cash slip from video lottery game by person under 21
years of age. Permits confiscation of tickets, shares or credit
or cash slips found in possession of underage person.
Modifies disclosure requirements of lottery game retailers.
Allows termination of contract with lottery game contractor for
knowing sale of tickets or shares of video lottery games to
persons under 21 years of age.
{ + Requires disclaimer text on lottery billboard advertising
to begin with word warning and to be printed in boldfaced letters
at least 12 inches high. + }
A BILL FOR AN ACT
Relating to regulation of lottery games; amending ORS 461.220,
461.250, 461.300 and 461.600.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 461.250 is amended to read:
461.250. Upon recommendation of the Director of the Oregon
State Lottery, the Oregon State Lottery Commission shall adopt
rules to establish a system of verifying the validity of tickets
or shares claimed to win prizes and to effect payment of such
prizes, provided:
(1) For the convenience of the public, lottery game retailers
may be authorized by the commission to pay winners of up to
$5,000 after performing validation procedures on their premises
appropriate to the lottery game involved.
(2) No prize shall be paid to any person under 18 years of age.
{ + No video lottery game prize shall be paid to any person
under 21 years of age. + }
(3) No prize may be paid arising from claimed tickets or shares
that are stolen, counterfeit, altered, fraudulent, unissued,
produced or issued in error, unreadable, not received or not
recorded by the Oregon State Lottery by applicable deadlines,
lacking in captions that confirm and agree with the lottery play
symbols as appropriate to the lottery game involved or not in
compliance with such additional specific rules or with public or
confidential validation and security tests of the lottery
appropriate to the particular lottery game involved. However, the
commission may adopt rules to establish a system of verifying the
validity of claims to prizes greater than $600 that are otherwise
not payable under this subsection due to a lottery game
retailer's losing, damaging or destroying the winning ticket or
share while performing validation procedures thereon, and to
effect payment of verified claims. A verification system
established by the commission shall include appropriate public or
confidential validation and security tests.
(4) No particular prize in any lottery game may be paid more
than once, and in the event of a binding determination that more
than one claimant is entitled to a particular prize, the sole
remedy of such claimants is the award to each of them of an equal
share in the prize.
(5) The commission may specify that winners of less than $25
claim such prizes from either the same lottery game retailer who
sold the winning ticket or share or from the lottery itself and
may also specify that the lottery game retailer who sold the
winning ticket or share be responsible for directly paying that
prize.
(6) Holders of tickets or shares shall have the right to claim
prizes for one year after the drawing or the end of the lottery
game or play in which the prize was won. The commission may
define shorter time periods to claim prizes and for eligibility
for entry into drawings involving entries or finalists. If a
valid claim is not made for a prize payable directly by the
lottery commission within the applicable period, the unclaimed
prize shall remain the property of the commission and shall be
allocated to the benefit of the public purpose.
(7)(a) The right of any person to a prize shall not be
assignable, except that:
(A) Payment of any prize may be made according to the terms of
a deceased prize winner's signed beneficiary designation form
filed with the commission or, if no such form has been filed, to
the estate of the deceased prize winner.
(B) Payment of any prize shall be made to a person designated
pursuant to an appropriate judicial order or pursuant to a
judicial order approving the assignment of the prize in
accordance with ORS 461.253.
(b) The director, commission and state shall be discharged of
all further liability with respect to a specific prize payment
upon making that prize payment in accordance with this subsection
or ORS 461.253.
(8) A ticket or share shall not be purchased by, and a prize
shall not be paid to, a member of the commission, the director,
the assistant directors or any employee of the state lottery or
to any spouse, child, brother, sister or parent of such person.
(9) Payments made according to the terms of a deceased prize
winner's signed beneficiary designation form filed with the
commission are effective by reason of the contract involved and
this statute and are not to be considered as testamentary devices
or subject to ORS chapter 112. The director, commission and state
shall be discharged of all liability upon payment of a prize.
(10) In accordance with the provisions of the Soldiers' and
Sailors' Civil Relief Act of 1940 (50 U.S.C.A. app. 525), a
person while in active military service may claim exemption from
the one-year ticket redemption requirement under subsection (6)
of this section. However, the person must notify the commission
by providing satisfactory evidence of possession of the winning
ticket within the one-year period, and must claim the prize or
share no later than one year after discharge from active military
service.
SECTION 2. ORS 461.300, as amended by section 17, chapter 351,
Oregon Laws 1999, is amended to read:
461.300. (1) The Oregon State Lottery Commission shall adopt
rules specifying the terms and conditions for contracting with
lottery game retailers so as to provide adequate and convenient
availability of tickets or shares to prospective buyers of each
lottery game as appropriate for each such game. The foregoing
shall not preclude the lottery from selling tickets or shares
directly to the public.
(2)(a) The Director of the Oregon State Lottery shall, pursuant
to this chapter, and the rules of the commission, select as
lottery game retailers such persons as deemed to best serve the
public convenience and promote the sale of tickets or shares. No
person under the age of 18 shall be a lottery game retailer. In
the selection of a lottery game retailer, the director shall
consider factors such as financial responsibility, integrity,
reputation, accessibility of the place of business or activity to
the public, security of the premises, the sufficiency of existing
lottery game retailers for any particular lottery game to serve
the public convenience and the projected volume of sales for the
lottery game involved.
(b) { + Except when the director concludes that it is
reasonable and prudent to waive disclosure requirements under
this section and to do so will not jeopardize the fairness,
integrity, security and honesty of the lottery, + } prior to the
execution of any contract with a lottery game retailer, the
lottery game retailer shall disclose to the lottery the names and
addresses of the following:
(A) If the lottery game retailer is a corporation but not a
private club as described in ORS 471.175, the officers, directors
and each stockholder { + who owns at least 10 percent of the
outstanding stock + } in such corporation { - ; except that, in
the case of stockholders of publicly held equity securities of a
publicly traded corporation, only the names and addresses of
those known to the corporation to beneficially own five percent
or more of such securities need be disclosed - } .
(B) If the lottery game retailer is a trust, the trustee and
all persons entitled to receive income or benefit from the trust.
(C) If the lottery game retailer is an association but not a
private club as described in ORS 471.175, the members, officers
and directors.
(D) If the lottery game retailer is a subsidiary but not a
private club as described in ORS 471.175, the officers, directors
and each stockholder { + who owns at least 10 percent of the
outstanding stock + } of the parent corporation thereof { - ;
except that, in the case of stockholders of publicly held equity
securities of a publicly traded corporation, only the names and
addresses of those known to the corporation to beneficially own
five percent or more of such securities need be disclosed - } .
(E) If the lottery game retailer is a partnership { + , limited
liability company + } or joint venture, all of the general
partners, limited partners { + , members and managers of a
limited liability company + } or joint venturers.
(F) If the parent company, general partner, limited
partner { + , member or manager of a limited liability company,
stockholder + } or joint venturer of any lottery game retailer is
itself a corporation, trust { + , + } association, subsidiary,
partnership { + , limited liability company + } or joint
{ - venturer - } { + venture + }, then { + the director may
require that + } all of the information required { - in - }
{ + by + } this
{ - section shall - } { + paragraph + } be disclosed for such
other entity as if it were itself a lottery game retailer to the
end that full disclosure of ultimate ownership be achieved.
(G) If any member, 18 years of age or older, of the immediate
family of any video lottery game retailer, or any member, 18
years of age or older, of the immediate family of any individual
whose name is required to be disclosed under this paragraph, is
involved in the video lottery game retailer's business in any
capacity, then all of the information required in this
{ - section - } { + paragraph + } shall be disclosed for such
immediate family member as if the family member were a video
lottery game retailer.
(H) { - If any member, 18 years of age or older, of the
immediate family - } { + If any immediate family member, 18
years of age or older, + } of any lottery game retailer, other
than a video lottery game retailer, { + or of any person whose
name is required to be disclosed under this paragraph + } is
involved in the lottery game retailer's business in any capacity,
then the lottery game retailer shall identify the immediate
family member to the Oregon State Lottery, and shall report the
capacity in which the immediate family member is involved in the
lottery game retailer's business { + if requested by the
director + }. Full disclosure of immediate family members working
in the business may { - only - } be required { - as provided
in paragraph (c) of this subsection - } { + only if the
director has just cause for believing the immediate family member
may be a threat to the fairness, integrity, security or honesty
of the lottery + }.
(I) If the lottery game retailer is a private club as described
in ORS 471.175, the treasurer, officers, directors and trustees
who oversee or direct the operation of the food, beverage,
lottery or other gambling-related activities of the private club
and each manager in charge of the food, beverage, lottery or
other gambling-related activities of the private club.
{ + (J) Any other person required by rule of the
commission. + }
{ - (c) The director may require full disclosure of any
immediate family member of any lottery game retailer who is
involved in the lottery game retailer's business as if the family
member were a lottery game retailer if the director has just
cause for believing the family member may be a threat to the
integrity, honesty, fairness or security of the lottery and its
games. - }
{ + (c) Any person required to disclose information under
paragraph (b) of this subsection shall disclose additional
information for retail contract approval that the director
determines to be appropriate. + }
(d) The commission may refuse to grant a lottery game retail
contract to any lottery game retailer or any natural person whose
name is required to be disclosed under paragraph (b) of this
subsection, who has been convicted of violating any of the
gambling laws of this state, general or local, or has been
convicted at any time of any crime. The lottery may require
payment by each lottery game retailer to the lottery of an
initial nonrefundable application fee or an annual fee, or both,
to maintain the contract to be a lottery game retailer.
(e) No person shall be a lottery game retailer who is engaged
exclusively in the business of selling lottery tickets or shares.
A person lawfully engaged in nongovernmental business on state or
political subdivision property or an owner or lessee of premises
which lawfully sells alcoholic beverages may be selected as a
lottery game retailer. State agencies, except for the state
lottery, political subdivisions or their agencies or departments
may not be selected as a lottery game retailer. The director may
contract with lottery game retailers on a permanent, seasonal or
temporary basis.
(3) The authority to act as a lottery game retailer shall not
be assignable or transferable.
(4) The director may terminate a contract with a lottery game
contractor for { - such bases of termination as shall be
included in such contract, which bases shall include, but not be
limited to, the knowing sale of lottery tickets or shares to any
person under the age of 18 years. - } { + bases specified in
the contract. Such bases shall include, but are not limited to,
the knowing sale of lottery tickets or shares to a person under
18 years of age, or under 21 years of age in the case of video
lottery games. + }
(5) Notwithstanding subsection (4) of this section, when a
lottery game retail contract requires the lottery game retailer
to maintain a minimum weekly sales average, the lottery game
retailer may avoid termination of the contract for failure to
meet the minimum weekly sales average by agreeing, prior to
termination, to pay the state lottery the difference between the
actual weekly cost incurred by the lottery to maintain the
contract and the weekly proceeds that are collected by the
lottery from the sales of that lottery game retailer, less
expenses that are dedicated by statute, rule or contract to other
purposes. The director may not terminate the contract of a
lottery game retailer for failure to meet a minimum weekly sales
average unless the director first allows the lottery game
retailer an opportunity to make the payment described in this
subsection.
SECTION 3. ORS 461.600 is amended to read:
461.600. { + (1) + } No tickets or shares in lottery games
shall be sold to persons under the age of 18 years. { + No video
lottery game wagers shall be made by persons under the age of 21
years. + }In the case of lottery tickets or shares sold by
lottery game retailers or their employees, such persons shall
establish safeguards to help { - assure - } { + ensure + }
that such sales are not made to persons under the age of 18
years. In the case of sales of tickets or shares sold by vending
machines or other devices, the { + Oregon State Lottery + }
Commission shall establish safeguards to help { - assure - }
{ + ensure + } that such vending machines or devices are not
operated by persons under the age of 18 years { + and that no
video lottery game wagers are made by persons under the age of 21
years + }.
{ + (2)(a) A person under the age of 18 years may not possess
a ticket or share in a lottery game. A person under the age of 21
years may not control or possess a credit or cash slip from a
video lottery game device.
(b) An employee or agent of the commission or any peace officer
may seize a lottery game ticket or share from a person under the
age of 18 years or a credit or cash slip from a video lottery
game device from a person under the age of 21 years.
(c) The Director of the Oregon State Lottery may destroy, or
make such other disposition as may be in the public interest, any
ticket, share or credit or cash slip lawfully seized from a
person who possesses the ticket, share or credit or cash slip in
violation of this section. Any prize money otherwise payable on
the ticket, share or credit or cash slip shall remain the
property of the commission and shall be allocated to the benefit
of the public purpose. + }
SECTION 4. ORS 461.220 is amended to read:
461.220. Upon recommendation of the Director of the Oregon
State Lottery, the Oregon State Lottery Commission shall adopt
rules that specify the number and value of prizes for winning
tickets or shares in each lottery game including, without
limitation, cash prizes, merchandise prizes, prizes consisting of
deferred payments or annuities and prizes of tickets or shares in
the same lottery game or other lottery games conducted by the
Oregon State Lottery, provided:
(1) In each lottery game utilizing tickets, the following
information shall be printed on each ticket:
(a) A close approximation of the odds of winning some prize or
some cash prize, as appropriate for the lottery game.
(b) An approximation of a payout percentage that will be
returned to players in the form of prizes for the lottery game.
For on-line games, the approximation may be based on the average
payout percentage over several prior years.
(c) The statement that 'Lottery games are based on chance,
should be played for entertainment only and should not be played
for investment purposes. '
(2) A detailed tabulation of the estimated number of prizes of
each particular prize denomination that are expected to be
awarded in each lottery game and the close approximation of the
odds of winning such prizes shall be available at each location
at which tickets or shares in such lottery games are offered for
sale to the public.
(3) All television, radio and newspaper advertising of a
lottery game shall include a disclaimer representing a close
approximation of the odds of winning some prize and an
approximation of the amount that will be returned to the players
in the form of prizes for the game in the following words: 'The
odds of winning some prize are one in (some number). The prize
payout percentage is (some number).' where the numbers stated
represent a close approximation of the odds of winning some prize
and the prize payout percentage. However, this subsection does
not apply to advertising the purpose of which is to advertise the
location where tickets may be purchased or to provide information
about the winners.
(4) All television, radio and newspaper advertising of lottery
games funded by the lottery commission, including advertising
that is intended to indicate where tickets may be purchased or to
provide information about prize winners, shall include the
disclaimer that 'Lottery games are based on chance, should be
played for entertainment only and should not be played for
investment purposes. '
(5) All television, radio and newspaper advertising intended to
publicize projects or programs funded by lottery dollars shall
include the disclaimer that 'Lottery games are based on chance
and should be played for entertainment only.' However, this
subsection does not apply to any such advertising that has the
sole purpose of educating the public about gambling addiction or
available treatments.
(6) All billboard advertising intended to promote a lottery
game, to indicate where tickets may be purchased or to provide
information about prize winners shall include the disclaimer that
{ + reads: 'WARNING: + } { - ' - } Lottery games should not
be played for investment purposes.' { + This statement must be
printed in boldfaced letters that are at least 12 inches in
height. + }
(7) All billboard advertising intended to publicize projects or
programs funded by lottery dollars shall include the disclaimer
that { + reads: 'WARNING: + } { - ' - } Lottery games should
be played for entertainment only.' { + This statement must be
printed in boldfaced letters that are at least 12 inches in
height. + }
(8) A disclaimer required by this section to be included in a
written advertisement shall be of a size and in a form that
allows an individual to readily notice and read the statement. A
disclaimer required by this section to be included in a
television or radio advertisement shall be spoken aloud and, in
the case of television, must also be displayed visually in a form
that allows an individual to readily notice and read the
statement.
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