72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
Enrolled
Senate Bill 170
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 Theodore R.
Kulongoski for the Oregon State Lottery)
CHAPTER ................
AN ACT
Relating to age restrictions for participation in Oregon State
Lottery; amending ORS 79.0406, 79.0408, 461.250, 461.257,
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 - } { + A + } prize { - shall - } { + may
not + } be paid to { - any - } { + a + } person under 18
years of age.
{ + (3) A video lottery game prize may not be paid to a
person under 21 years of age. + }
{ - (3) - } { + (4) + } { - No - } { + A + } prize may
{ + not + } 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.
Enrolled Senate Bill 170 (SB 170-INTRO) Page 1
{ - (4) - } { + (5) + } { - No - } { + A + } particular
prize in any lottery game may { + not + } 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) - } { + (6) + } 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) - } { + (7) + } 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) - } { + (8)(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) - } { + (9) + }A ticket or share { - shall - }
{ + may + } not be purchased by, and a prize { - shall - }
{ + may + } 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) - } { + (10) + } 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) - } { + (11) + } 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) - } { + (7) + } 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 is amended to read:
Enrolled Senate Bill 170 (SB 170-INTRO) Page 2
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 - } { + Nothing in this subsection is
intended to + } 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 - } { + A + } person under the age of 18 { - shall - }
{ + may not + } 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.
Enrolled Senate Bill 170 (SB 170-INTRO) Page 3
(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 - }
{ + A person who is a lottery game retailer may not be + }
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 - } { + is + } 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 - }
{ + retailer based on the grounds for termination + } included
in { - such - } { + the + } contract { - , which bases shall
include, but not be limited to, - } { + or commission rules
governing the contract. The grounds for termination must include,
but are not limited to, + } the knowing sale of lottery tickets
or shares to any person under the age of 18 years { + or
knowingly permitting a person under the age of 21 years to
operate a video lottery game terminal + }.
(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
Enrolled Senate Bill 170 (SB 170-INTRO) Page 4
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. { - No tickets or shares in lottery games shall be
sold to persons under the age of 18 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
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 commission shall establish
safeguards to help assure that such vending machines or devices
are not operated by persons under the age of 18 years. - }
{ + (1) Tickets or shares in lottery games, including tickets or
shares sold from vending machines or other devices, may not be
sold to a person under 18 years of age.
(2) Video lottery game terminals may not be operated by a
person under 21 years of age.
(3) The Oregon State Lottery Commission shall establish
safeguards to ensure that lottery game + } { + retailers
comply with the requirements of this section. + }
SECTION 4. ORS 79.0406 is amended to read:
79.0406. (1) Subject to subsections (2) to (9) of this section,
an account debtor on an account, chattel paper or a payment
intangible may discharge its obligation by paying the assignor
until, but not after, the account debtor receives a notification,
authenticated by the assignor or the assignee, that the amount
due or to become due has been assigned and that payment is to be
made to the assignee. After receipt of the notification, the
account debtor may discharge its obligation by paying the
assignee and may not discharge the obligation by paying the
assignor.
(2) Subject to subsection (8) of this section, notification is
ineffective under subsection (1) of this section:
(a) If it does not reasonably identify the rights assigned;
(b) To the extent that an agreement between an account debtor
and a seller of a payment intangible limits the account debtor's
duty to pay a person other than the seller and the limitation is
effective under law other than this chapter; or
(c) At the option of an account debtor, if the notification
notifies the account debtor to make less than the full amount of
any installment or other periodic payment to the assignee, even
if:
(A) Only a portion of the account, chattel paper or payment
intangible has been assigned to that assignee;
(B) A portion has been assigned to another assignee; or
(C) The account debtor knows that the assignment to that
assignee is limited.
(3) Subject to subsection (8) of this section, if requested by
the account debtor, an assignee shall seasonably furnish
reasonable proof that the assignment has been made. Unless the
assignee complies, the account debtor may discharge its
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obligation by paying the assignor, even if the account debtor has
received a notification under subsection (1) of this section.
(4) Except as otherwise provided in subsection (5) of this
section and ORS 72A.3030 and 79.0407, and subject to subsection
(8) of this section, a term in an agreement between an account
debtor and an assignor or in a promissory note is ineffective to
the extent that it:
(a) Prohibits, restricts or requires the consent of the account
debtor or person obligated on the promissory note to the
assignment or transfer of, or the creation, attachment,
perfection or enforcement of a security interest in, the account,
chattel paper, payment intangible or promissory note; or
(b) Provides that the assignment or transfer or the creation,
attachment, perfection or enforcement of the security interest
may give rise to a default, breach, right of recoupment, claim,
defense, termination, right of termination or remedy under the
account, chattel paper, payment intangible or promissory note.
(5) Subsection (4) of this section does not apply to the sale
of a payment intangible or promissory note.
(6) Except as otherwise provided in ORS 72A.3030 and 79.0407
and subject to subsections (8) and (9) of this section, a rule of
law, statute or regulation that prohibits, restricts or requires
the consent of a government, governmental body or official, or
account debtor to the assignment or transfer of, or creation of a
security interest in, an account or chattel paper is ineffective
to the extent that the rule of law, statute or regulation:
(a) Prohibits, restricts or requires the consent of the
government, governmental body or official, or account debtor to
the assignment or transfer of, or the creation, attachment,
perfection or enforcement of a security interest in the account
or chattel paper; or
(b) Provides that the assignment or transfer or the creation,
attachment, perfection or enforcement of the security interest
may give rise to a default, breach, right of recoupment, claim,
defense, termination, right of termination or remedy under the
account or chattel paper.
(7) Subject to subsection (8) of this section, an account
debtor may not waive or vary its option under subsection (2)(c)
of this section.
(8) This section is subject to law other than this chapter
which establishes a different rule for an account debtor who is
an individual and who incurred the obligation primarily for
personal, family or household purposes.
(9)(a) This section does not apply to the assignment of a
health-care-insurance receivable.
(b) Subsections (4) and (6) of this section do not apply to the
assignment or transfer of, or the creation of a security interest
in, a claim or right to receive compensation for injuries or
sickness as described in 26 U.S.C. 104(a)(2), provided that such
transaction constitutes a sale of such claim or right. The
limitation in this paragraph is intended to leave to the court
the determination of the proper rules in such cases. The court
may not infer from that limitation the nature of the proper rule
in such cases and may continue to apply established approaches.
(c) Subsections (4) and (6) of this section do not apply to the
following:
(A) The assignment or transfer of, or the creation of a
security interest in, a claim or right to receive compensation
for injuries or sickness as described in 26 U.S.C. 104(a)(1);
Enrolled Senate Bill 170 (SB 170-INTRO) Page 6
(B) The assignment or transfer of, or the creation of a
security interest in, a claim or right to receive benefits under
a special needs trust as described in 42 U.S.C. 1396p(d)(4); or
(C) The assignment or transfer of, or the creation, attachment,
perfection or enforcement of a security interest in, the
benefits, rights, privileges or options accruing under an annuity
policy, to the extent that the annuity policy provides for such a
restriction and the restriction is permitted under ORS 743.049.
(d) Subsection (6) of this section does not apply to the
assignment or transfer of, or the creation, attachment,
perfection or enforcement of a security interest in, a right when
the transfer of the right is prohibited or restricted by ORS
147.325, 461.250 { - (7) - } { + (8) + } or 656.234, to the
extent that ORS 147.325, 461.250 { - (7) - } { + (8) + } or
656.234 is inconsistent with subsection (6) of this section.
(10) Except to the extent otherwise provided in subsection (9)
of this section, this section prevails over any inconsistent
provision of an existing or future statute unless the provision
refers expressly to this section and states that the provision
prevails over this section.
SECTION 5. ORS 79.0408 is amended to read:
79.0408. (1) Except as otherwise provided in subsection (2) of
this section, a term in a promissory note or in an agreement
between an account debtor and a debtor which relates to a
health-care-insurance receivable or a general intangible,
including a contract, permit, license or franchise, and which
term prohibits, restricts or requires the consent of the person
obligated on the promissory note or the account debtor to, the
assignment or transfer of, or creation, attachment or perfection
of a security interest in, the promissory note,
health-care-insurance receivable or general intangible, is
ineffective to the extent that the term:
(a) Would impair the creation, attachment or perfection of a
security interest; or
(b) Provides that the assignment or transfer or the creation,
attachment or perfection of the security interest may give rise
to a default, breach, right of recoupment, claim, defense,
termination, right of termination or remedy under the promissory
note, health-care-insurance receivable or general intangible.
(2) Subsection (1) of this section applies to a security
interest in a payment intangible or promissory note only if the
security interest arises out of a sale of the payment intangible
or promissory note.
(3) A rule of law, statute or regulation that prohibits,
restricts or requires the consent of a government, governmental
body or official, person obligated on a promissory note or
account debtor to the assignment or transfer of, or creation of a
security interest in, a promissory note, health-care-insurance
receivable or general intangible, including a contract, permit,
license or franchise between an account debtor and a debtor, is
ineffective to the extent that the rule of law, statute or
regulation:
(a) Would impair the creation, attachment or perfection of a
security interest; or
(b) Provides that the assignment or transfer or the creation,
attachment or perfection of the security interest may give rise
to a default, breach, right of recoupment, claim, defense,
termination, right of termination or remedy under the promissory
note, health-care-insurance receivable or general intangible.
Enrolled Senate Bill 170 (SB 170-INTRO) Page 7
(4) To the extent that a term in a promissory note or in an
agreement between an account debtor and a debtor which relates to
a health-care-insurance receivable or general intangible or a
rule of law, statute or regulation described in subsection (3) of
this section would be effective under law other than this chapter
but is ineffective under subsection (1) or (3) of this section,
the creation, attachment or perfection of a security interest in
the promissory note, health-care-insurance receivable or general
intangible:
(a) Is not enforceable against the person obligated on the
promissory note or the account debtor;
(b) Does not impose a duty or obligation on the person
obligated on the promissory note or the account debtor;
(c) Does not require the person obligated on the promissory
note or the account debtor to recognize the security interest,
pay or render performance to the secured party, or accept payment
or performance from the secured party;
(d) Does not entitle the secured party to use or assign the
debtor's rights under the promissory note, health-care-insurance
receivable or general intangible, including any related
information or materials furnished to the debtor in the
transaction giving rise to the promissory note,
health-care-insurance receivable or general intangible;
(e) Does not entitle the secured party to use, assign, possess
or have access to any trade secrets or confidential information
of the person obligated on the promissory note or the account
debtor; and
(f) Does not entitle the secured party to enforce the security
interest in the promissory note, health-care-insurance receivable
or general intangible.
(5)(a) Subsections (1) and (3) of this section do not apply to
the assignment or transfer of, or the creation of a security
interest in, a claim or right to receive compensation for
injuries or sickness as described in 26 U.S.C. 104(a)(2),
provided that such transaction constitutes a sale of such claim
or right. The limitation in this paragraph is intended to leave
to the court the determination of the proper rules in such cases.
The court may not infer from that limitation the nature of the
proper rule in such cases and may continue to apply established
approaches.
(b) Subsections (1) and (3) of this section do not apply to the
following:
(A) The assignment or transfer of, or the creation of a
security interest in, a claim or right to receive compensation
for injuries or sickness as described in 26 U.S.C. 104(a)(1);
(B) The assignment or transfer of, or the creation of a
security interest in, a claim or right to receive benefits under
a special needs trust as described in 42 U.S.C. 1396p(d)(4); or
(C) The assignment or transfer of, or the creation, attachment,
perfection or enforcement of a security interest in, the
benefits, rights, privileges or options accruing under an annuity
policy, to the extent that the annuity policy provides for such a
restriction and the restriction is permitted under ORS 743.049.
(c) Subsection (3) of this section does not apply to the
assignment or transfer of, or the creation, attachment,
perfection or enforcement of a security interest in, a right when
the transfer of the right is prohibited or restricted by ORS
147.325, 461.250 { - (7) - } { + (8) + } or 656.234, to the
extent that ORS 147.325, 461.250 { - (7) - } { + (8) + } or
656.234 is inconsistent with subsection (3) of this section.
Enrolled Senate Bill 170 (SB 170-INTRO) Page 8
(6) Except to the extent otherwise provided in subsection (5)
of this section, this section prevails over any inconsistent
provision of an existing or future statute unless the provision
refers expressly to this section and states that the provision
prevails over this section.
SECTION 6. ORS 461.257 is amended to read:
461.257. Notwithstanding ORS 461.250 { - (7) - }
{ + (8) + } or 461.253, if it is ever determined that prize
winners who do not seek to assign their prize payments are
subject to immediate income taxes on the prize payments just as
if those prize winners had so assigned their prizes, the Oregon
State Lottery Commission may intervene in a proceeding commenced
under ORS 461.253 in order to raise the issue of adverse tax
consequences in the proceeding. If the court determines that ORS
461.250 { - (7) - } { + (8) + } and 461.253 or the issuance
of an order approving an assignment of prize payments subjects
prize winners who do not seek assignment of prize payments to
immediate income taxes on their prize payments, the court shall
refuse to authorize an assignment and shall issue an order that
ORS 461.250 { - (7) - } { + (8) + } and 461.253 are suspended
and are of no force or effect so long as such determination and
adverse tax consequences are in effect. An order issued by a
court under this section shall suspend ORS 461.250 { - (7) - }
{ + (8) + } and 461.253 throughout this state. An order issued
under this section shall be final and shall remain in effect
unless or until overturned or modified by a subsequent court
order or the order of a reviewing court.
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Passed by Senate February 4, 2003
...........................................................
Secretary of Senate
...........................................................
President of Senate
Passed by House April 9, 2003
...........................................................
Speaker of House
Enrolled Senate Bill 170 (SB 170-INTRO) Page 9
Received by Governor:
......M.,............., 2003
Approved:
......M.,............., 2003
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2003
...........................................................
Secretary of State
Enrolled Senate Bill 170 (SB 170-INTRO) Page 10