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 2992
 
                         Senate Bill 714
 
Sponsored by Senator GEORGE
 
 
                             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 as
introduced.
 
  Allows Director of Oregon State Lottery to renew or reissue
terminated lottery game contracts with charitable, fraternal or
religious organizations under certain circumstances.
 
                        A BILL FOR AN ACT
Relating to lottery game contracts; amending ORS 461.300.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. 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) 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 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 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 or joint
venture, all of the general partners, limited partners or joint
venturers.
  (F) If the parent company, general partner, limited partner or
joint venturer of any lottery game retailer is itself a
corporation, trust association, subsidiary, partnership or joint
venturer, then all of the information required in this section
shall 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
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 of any lottery game retailer, other than a video lottery
game retailer, 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. Full
disclosure of immediate family members working in the business
may only be required as provided in paragraph (c) of this
subsection.
  (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.
  (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.
  (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) { + (a) + } 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.
   { +  (b) When the lottery game contract of a charitable,
fraternal or religious organization has been terminated under the
provisions of paragraph (a) of this subsection, or for a
violation of any federal, state or local gambling law, the
director may renew or reissue a lottery game contract with the
organization if:
  (A) At least five years have passed since the action or
activity that served as the basis for termination of the
contract;
  (B) The organization has not committed any additional
violations of this chapter, ORS chapter 464 or any other statute
or rule of this state;
  (C) The governing documents of the organization formally
reflect a policy against gaming activities that run contrary to
any law or rule of this state;
  (D) All assessed fines have been paid in full; and
  (E) There has been a substantial change in leadership of the
organization that held the terminated lottery game contract. + }
  (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.
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