Source: https://www.oregonlegislature.gov/bills_laws/ors/ors461.html
Timestamp: 2017-09-22 16:55:36
Document Index: 11772587

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Chapter 461 — Oregon State Lottery
461.010 Definitions
461.030 Local laws preempted; applicability of other laws; severability
461.050 Location of offices
461.100 Oregon State Lottery Commission; members; duties; meetings
461.110 Criminal identification information available to lottery; fingerprints; service and execution of warrants
461.120 Commission exempt from certain laws; rulemaking; applicability of Administrative Procedures Act
461.130 Authority of commission; delegation; contracts for security services
(State Lottery Director)
461.150 State lottery director; appointment; assistant directors; duties and powers
461.170 Coordination between director and commission
461.180 Studies; accountability; audits; delegation
OPERATION OF LOTTERY
461.200 Operation of lottery; Oregon State Lottery Responsible Gambling Code of Practice
461.202 Transportation of gambling devices
461.210 Security measures; ticket content; rules
461.217 Video lottery game regulation; limitation on number and placement of terminals; rules
461.220 Number and value of prizes; required information on lottery tickets; rules; advertising
461.230 Method for determining winners; rules
461.240 Sale price of tickets and shares; rules
461.250 Validation and payment of prizes; tabulation of sales and prizes; assignment of prizes; payment on behalf of deceased winner; claim period; ineligibility of lottery employees; rules
461.251 Reporting of certain prize winners to Department of Human Services
461.253 Voluntary assignment of prizes; petition for judicial order; issuance of order; commission intervention in proceeding
461.257 Judicial order suspending voluntary assignment laws upon finding of adverse tax consequences for all prize winners
461.260 Distribution of tickets and shares; rules
461.300 Selection of retailers; rules; contracts
461.310 Compensation for retailers
461.330 Display of certificate of authority; bond or letter of credit; payments for tickets or shares
461.335 Temporary letter of authority; grounds for revocation
LOTTERY VENDORS AND CONTRACTORS
461.400 Procurements
461.410 Vendor disclosure for major procurements
461.430 Contractor required to comply with applicable laws; performance bond
461.440 Commission’s authority to contract; rules
461.445 Policy on payment to contractors
LOTTERY FINANCES
461.500 Lottery to be self-supporting; allocation of revenues
461.510 State Lottery Fund; types of disbursements
461.512 Management of lottery moneys received by county; report on use of moneys
461.520 Establishment of checking accounts and petty cash fund
461.540 Administrative Services Economic Development Fund
461.543 Sports Lottery Account; distribution of revenues
461.547 Distribution of certain video lottery revenues to counties for economic development
461.549 Use of video lottery proceeds for treatment of gambling-related behavioral problems
461.550 Expenditure limitation not applicable to lottery
461.553 ODAS Economic Development Distributions Fund
461.555 Capital Construction Trust Fund; sources; uses
461.557 DOT Economic Development Distributions Fund
461.559 Reversion of lottery allocations
461.560 Taxation of sales and prizes
461.600 Sales to minors
461.700 Additional disclosure requirements; costs of investigation
461.715 Holding of certain lottery prizes for child support; rules; procedure
461.719 Holding of certain lottery prizes for overpayment of assistance; rules; procedures
461.725 Enforcement officers to enforce prohibition on gray machines
RESPONSIBLE GAMBLING CODE OF PRACTICES ACT
461.810 Definitions
461.820 Promotion of responsible gambling
461.010 Definitions. Unless the context requires otherwise, the definitions contained in this chapter shall govern the construction of this chapter.
(1) “Commissioner” means one of the members of the lottery commission appointed by the Governor pursuant to the Constitution of the State of Oregon and this chapter to oversee the state lottery.
(2) “Director” means the Director of the Oregon State Lottery appointed by the Governor pursuant to the Constitution of the State of Oregon and this chapter as the chief administrator of the Oregon State Lottery.
(3) “Lottery” or “state lottery” means the Oregon State Lottery established and operated pursuant to the Constitution of the State of Oregon and this chapter.
(4) “Lottery commission” or “commission” means the five-member body appointed by the Governor pursuant to the Constitution of the State of Oregon and this chapter to oversee the lottery and the director.
(5) “Lottery contractor” means a person with whom the state lottery has contracted for the purpose of providing goods and services for the state lottery.
(6) “Lottery game” or “game” means any procedure authorized by the commission whereby prizes are distributed among persons who have paid, or unconditionally agreed to pay, for tickets or shares that provide the opportunity to win such prizes.
(7) “Lottery game retailer” means a person with whom the lottery commission has contracted for the purpose of selling tickets or shares in lottery games to the public.
(8) “Lottery vendor” or “vendor” means any person who submits a bid, proposal or offer to provide goods or services to the commission or lottery.
(9) “Person” means any natural person or corporation, trust, association, partnership, joint venture, subsidiary or other business entity. [1985 c.2 §1(7); 1985 c.302 §1(7); 2013 c.1 §69]
461.015 Short title. This chapter shall be known as the Oregon State Lottery Act of 1984. [1985 c.2 §1(1); 1985 c.302 §1(1)]
461.020 Purpose. The people of the State of Oregon declare that the purpose and intent of this chapter is to provide additional moneys for the public purpose described in section 4, Article XV of the Constitution of the State of Oregon through the operation of a state lottery without the imposition of additional or increased taxes. [1985 c.2 §1(2); 1985 c.302 §1(2)]
461.030 Local laws preempted; applicability of other laws; severability. (1) This chapter shall be applicable and uniform throughout the state and all political subdivisions and municipalities therein, and no local authority shall enact any ordinances, rules or regulations in conflict with the provisions hereof.
(a) Statewide financial reporting required in ORS 291.040.
(b) The mass transit assessment under ORS 291.405.
(c) The deposit of state money to the State Treasurer under ORS 293.265. [1985 c.2 §8(2),(3),(5),(6),(9); 1985 c.302 §8(2),(3),(5),(6),(9)]
461.040 Effect on other gambling laws. Nothing contained in this chapter shall be construed to repeal or modify existing state laws with respect to gambling, except that the state-operated lottery established by the Constitution of the State of Oregon and this chapter shall not be subject to such laws. [1985 c.2 §1(3); 1985 c.302 §1(3)]
461.050 Location of offices. The Oregon State Lottery shall have its principal offices in the capital city. [1985 c.302 §8(7)]
461.055 [1995 c.341 §2; 1997 c.645 §1; 1999 c.1093 §16; 2003 c.794 §286; repealed by 2007 c.569 §1]
461.100 Oregon State Lottery Commission; members; duties; meetings. (1) The Oregon State Lottery Commission is hereby created in state government.
(10) The commission shall prepare quarterly and annual reports of the operation of the state lottery. Such reports shall include a full and complete statement of state lottery revenues, prize disbursements, expenses, net revenues and all other financial transactions involving state lottery funds. The commission shall, not less than annually, contact interested parties, including those named in ORS 461.180 (3), and provide them with such quarterly and annual reports as they may request. [1985 c.2 §2(1) to (10); 1985 c.302 §2(1) to (10); 1991 c.30 §1]
461.110 Criminal identification information available to lottery; fingerprints; service and execution of warrants. (1) Upon the request of the Oregon State Lottery Commission or the Director of the Oregon State Lottery, the office of the Attorney General and the Oregon State Police shall furnish to the director and to the Assistant Director for Security such information as may tend to ensure security, integrity, honesty and fairness in the operation and administration of the Oregon State Lottery as the office of the Attorney General and the Oregon State Police may have in their possession, including, but not limited to, manual or computerized information and data.
(2) In order to determine an applicant’s suitability to enter into a contract with or to be employed by the Oregon State Lottery, each applicant identified in this subsection shall be fingerprinted. The Assistant Director for Security may submit to the Department of State Police and to the Federal Bureau of Investigation, for the purpose of verifying the identity of the following persons and obtaining records of their arrests and criminal convictions, fingerprints of:
(3) For the purpose of requesting and receiving the information described in subsections (1) and (2) of this section, the Oregon State Lottery Commission is a state agency and a criminal justice agency and its enforcement agents are peace officers pursuant to ORS 181A.355 to 181A.670 and rules adopted thereunder.
461.120 Commission exempt from certain laws; rulemaking; applicability of Administrative Procedures Act. (1)(a) Except as otherwise provided by law, the provisions of ORS 279.835 to 279.855 and ORS chapters 279A, 279B, 279C, 282 and 283 do not apply to the Oregon State Lottery Commission unless otherwise provided by this chapter.
(c) ORS 276.004 (2), 276.021, 276.093 to 276.098, 276.410 to 276.426, 276.428, 276.440, 283.085 to 283.092, 291.038, 291.201 to 291.260 and 292.210 to 292.250 do not apply to the Oregon State Lottery Commission.
461.130 Authority of commission; delegation; contracts for security services. (1) Whenever a power is granted to the commission, the power may be exercised by such officer or employee within the Oregon State Lottery as is designated in writing by the commission. Any such designation shall be filed in the office of the Secretary of State.
461.140 Annual budget report. The Oregon State Lottery Commission shall:
(1) Prepare and provide an annual budget report to the Governor, the Legislative Fiscal Officer and the Legislative Revenue Officer in a manner and within a time frame established by the Legislative Fiscal Officer.
(2) Furnish the Legislative Assembly with any further information about the state lottery budget requested by the Legislative Fiscal Officer.
(3) Upon request, make available a representative to assist the Legislative Assembly, its Joint Committee on Ways and Means, appointed under ORS 171.555, and the Legislative Revenue Officer in the consideration of the state lottery budget and any accompanying measures. [1985 c.302 §15; 2009 c.440 §1]
461.150 State lottery director; appointment; assistant directors; duties and powers. (1) The Governor shall appoint a Director of the Oregon State Lottery, subject to confirmation by the Senate, who shall serve at the pleasure of the Governor. The director shall implement and operate a state lottery pursuant to the rules, and under the guidance, of the commission.
(2) The director shall be qualified by training and experience to direct the operations of a state-operated lottery. No person shall be appointed as lottery director who has been convicted of a felony or any gambling related offense.
(4) The director shall, subject to the approval of the commission, perform all duties, exercise all powers and jurisdiction, assume and discharge all responsibilities and carry out and effect the purposes of this chapter. The director shall act as secretary and executive officer of the commission. The director shall supervise and administer the operation of the Oregon State Lottery in accordance with this chapter, and the rules adopted by the commission. In all decisions, the director shall take into account the particularly sensitive nature of the state lottery, and shall act to promote and insure integrity, security, honesty and fairness of the operation and administration of the state lottery.
(5) The director shall recommend to the commission the establishment of rules pertaining to the employment, termination and compensation of all commission staff. The rules shall conform to generally accepted personnel practices based upon merit principles. Under the rules so established, the director may set the compensation, prescribe the duties and supervise persons so hired. The director may terminate or otherwise discipline persons so hired. No person shall be employed by the state lottery who has been convicted of a felony or any gambling related offense.
(8) The director and each assistant director shall file a verified statement of economic interest with the Oregon Government Ethics Commission and shall be subject to the provisions of ORS chapter 244. [1985 c.2 §3(1) to (7); 1985 c.302 §3(1) to (8)]
461.160 Authority of director to contract for services. Under the rules of the commission, the Director of the Oregon State Lottery may contract with any state agency or political subdivision for the performance of such duties, functions and powers as the director considers appropriate. [1985 c.302 §7(8)]
461.170 Coordination between director and commission. The Director of the Oregon State Lottery shall confer as frequently as necessary or desirable, but not less than monthly, with the commission, regarding the operation and administration of the Oregon State Lottery. The director shall make available for inspection by the commission, upon request, all books, records, files and other information and documents of the state lottery, and shall advise the commission and recommend such matters as deemed necessary and advisable to improve the operation and administration of the state lottery. [1985 c.2 §3(9); 1985 c.302 §3(10)]
461.180 Studies; accountability; audits; delegation. (1) The Director of the Oregon State Lottery shall make an ongoing study of the operation and the administration of the lotteries which may be in operation in other states or countries, of available literature on the subject, of federal laws which may affect the operation of the Oregon State Lottery and of the reaction of citizens of the state to existing or proposed features in lottery games, with a view toward recommending improvements that will tend to serve the purposes of this chapter. The director may make recommendations to the commission, Governor and Legislative Assembly on any matters concerning the secure and efficient operation and administration of the state lottery and the convenience of the purchasers of tickets and shares.
461.190 Assistant Director for Security. The Assistant Director for Security appointed pursuant to the Constitution of the State of Oregon and this chapter shall be responsible for a security division to assure integrity, security, honesty and fairness in the operation and administration of the Oregon State Lottery, including but not limited to, an examination of the background of all prospective employees, lottery game retailers, lottery vendors and lottery contractors. The Assistant Director for Security shall be qualified by training and experience, including at least five years of law enforcement experience, and knowledge and experience in computer security, to fulfill these responsibilities. The Assistant Director for Security shall, in conjunction with the Director of the Oregon State Lottery, confer with the Attorney General or designee as the Assistant Director of Security deems necessary and advisable to promote and insure integrity, security, honesty and fairness of the operation and administration of the state lottery. The Assistant Director for Security, in conjunction with the director, shall report any alleged violation of law to the Attorney General and any other appropriate law enforcement authority for further investigation and action. [1985 c.2 §3(8); 1985 c.302 §3(9)]
461.200 Operation of lottery; Oregon State Lottery Responsible Gambling Code of Practice. (1) The Oregon State Lottery must be operated so as to produce the maximum amount of net revenues to benefit the public purpose described in Article XV, section 4, of the Oregon Constitution, commensurate with the public good. To achieve this mission, in the operation of the Oregon State Lottery, the Oregon State Lottery Commission shall balance its obligation to maximize net revenues with its obligation to serve the public good through the implementation of an Oregon State Lottery Responsible Gambling Code of Practice.
(2) The Oregon State Lottery Responsible Gambling Code of Practice shall provide the manner in which the lottery commission plans to:
(a) Implement the values of the state lottery;
(b) Include guidance that identifies ethical standards and provides instruction for state lottery employees to meet the standards;
(c) Develop for state lottery employees, lottery contractors and lottery game retailers a system that promotes responsible gambling practices; and
(d) Establish responsible gambling practices to conduct the state’s lottery business in a manner that reduces the harm to the public caused by gambling.
(3) Other state government departments, boards, commissions, agencies and their officers shall cooperate with the lottery commission so as to aid the lottery commission in fulfilling these objectives. [1985 c.2 §4(1); 1985 c.302 §4(1); 1985 c.458 §1(1); 1985 c.520 §1(1); 2015 c.478 §1]
461.202 Transportation of gambling devices. Devices for playing lottery games, including video lottery game terminals, operated under the authority of the Oregon State Lottery Commission are exempted from the provisions of 15 U.S.C. 1172. [2009 c.221 §2]
461.210 Security measures; ticket content; rules. Upon recommendation of the Director of the Oregon State Lottery, the Oregon State Lottery Commission shall adopt rules specifying the types of lottery games to be conducted by the Oregon State Lottery, provided:
(1) Each lottery game shall contain security measures that are designed to prevent the redemption of fraudulent tickets. Every lottery ticket or stub printed after September 29, 1991, shall include a lottery fact which refers to a specific lottery funded project or the benefits and jobs created for a specific area of economic activity.
(2) No name of an elected official shall appear on the tickets of any lottery game. [1985 c.2 §4(2); 1985 c.302 §4(2); 1985 c.458 §1(2); 1985 c.520 §1(2); 1991 c.76 §1; 1991 c.613 §1; 1991 c.962 §1]
461.213 [1989 c.828 §4(1),(2); 1991 c.345 §1; 1991 c.613 §3; repealed by 2005 c.810 §3]
461.215 Video lottery games. (1) The Oregon State Lottery Commission may initiate a game or games using video devices, the proceeds from which shall be transferred to the Administrative Services Economic Development Fund for allocation as provided by law.
(2) In the approval and purchase of video lottery games, game terminals and equipment, the lottery commission and any game operator, distributor, retailer or owner shall prefer goods or services that have been manufactured in this state if price, fitness and quality are otherwise equal.
(3) The lottery commission shall separately record and account for the costs and net proceeds of games operated under this section. At such time as the lottery commission makes the quarterly transfer of net proceeds provided for by ORS 461.540, it shall certify to the Oregon Department of Administrative Services the amount of such transfer which represents the net proceeds of games provided for in subsection (1) of this section. [1989 c.828 §6; 1991 c.461 §80; 1991 c.962 §2; 1993 c.18 §117; 2009 c.221 §3]
461.217 Video lottery game regulation; limitation on number and placement of terminals; rules. (1) As used in this section, “video lottery game retailer” means a contractor under contract with the Oregon State Lottery to place video lottery game terminals on premises authorized by the contract.
(2) A video lottery game terminal that offers a video lottery game authorized by the Director of the Oregon State Lottery:
(a) May be placed for operation only in or on the premises of an establishment that has a contract with the Oregon State Lottery as a video lottery game retailer.
(b) Must be within the control of an employee of the video lottery game retailer.
(c) May not be placed in any other business or location.
(3) A video lottery game terminal may be placed only on the premises of an establishment licensed by the Oregon Liquor Control Commission with a full on-premises sales license, a limited on-premises sales license or a brewery-public house license. A video lottery game terminal may be placed only in that part of the premises that is posted by the Oregon Liquor Control Commission as being closed to minors. In addition to the requirements of this subsection, the director may by rule establish other criteria and conditions as the director determines appropriate for the placement of video lottery game terminals in establishments.
(4) No more than six video lottery game terminals may be placed in or on premises described in subsection (3) of this section.
(5) No more than 10 video lottery game terminals may be placed in or on the premises of a race meet licensee licensed under ORS 462.020 that qualifies as a video lottery game retailer. [1991 c.962 §10; 1999 c.351 §16; 2003 c.787 §1; 2007 c.631 §1; 2009 c.221 §4]
461.220 Number and value of prizes; required information on lottery tickets; rules; advertising. (1) 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.
(2) 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 online 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.”
(3) 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.
(4) Notwithstanding subsection (1) of this section, the commission may specify by rule the number and value of prizes for lottery games that use video devices or that use tickets or shares that allow a player to manually reveal covered play symbols, or the commission may make such information available at each location that offers such games using video devices, tickets or shares for sale to the public.
(5) 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.
(6) 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.”
(7) 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.
(8) 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 “Lottery games should not be played for investment purposes.”
(9) All billboard advertising intended to publicize projects or programs funded by lottery dollars shall include the disclaimer that “Lottery games should be played for entertainment only.”
(10) 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. [1985 c.2 §4(3); 1985 c.302 §4(3); 1985 c.458 §1(3); 1985 c.520 §1(3); 1991 c.63 §1; 1999 c.1069 §1; 2001 c.83 §1]
461.230 Method for determining winners; rules. (1) Upon recommendation of the Director of the Oregon State Lottery, the Oregon State Lottery Commission shall adopt rules that specify the method for determining winners in each lottery game.
(2) If a lottery game utilizes a manual drawing of winning numbers, a manual drawing among entries or a manual drawing among finalists:
(a) The drawing must be open to the public;
(b) The drawing must be witnessed by an independent certified public accountant or a professional representative of an independent certified public accountancy organization;
(c) Any equipment used in the drawing must be inspected by the independent certified public accountant or the professional representative of an independent certified public accountancy organization and an employee of the lottery both before and after the drawing; and
(d) The drawing and such inspections shall be recorded on both video and audio tape.
(3)(a) When a drawing is held out of this state in conjunction with other state lotteries, the Oregon State Lottery shall conduct periodic studies of the drawing’s security procedures. Any equipment used in a manual drawing must be inspected both before and after the drawing by a professional representative of an independent certified public accountancy organization and a representative of the state lottery designated by the director.
(b) Any manual drawing and such inspections shall be recorded on both video and audio tape.
(4) The lottery may use any of a variety of existing or future methods or technologies in determining winners. [1985 c.2 §4(4); 1985 c.302 §4(4); 1985 c.458 §1(4); 1985 c.520 §1(4); 1991 c.613 §2; 1997 c.146 §1; 1997 c.625 §2; 1999 c.322 §40; 2003 c.59 §1]
461.240 Sale price of tickets and shares; rules. (1) Upon recommendation of the Director of the Oregon State Lottery, the Oregon State Lottery Commission shall adopt rules specifying the retail sales price for each ticket or share for each lottery game. However, no ticket or share shall be sold for more than the retail sales price established by the commission.
(2) Notwithstanding subsection (1) of this section, the commission may specify by rule the retail sales price for tickets or shares that allow a player to manually reveal covered play symbols or may print the retail sales price on the ticket or share. [1985 c.2 §4(5); 1985 c.302 §4(5); 1985 c.458 §1(5); 1985 c.520 §1(5); 1989 c.418 §2; 2001 c.83 §2]
461.250 Validation and payment of prizes; tabulation of sales and prizes; assignment of prizes; payment on behalf of deceased winner; claim period; ineligibility of lottery employees; rules. 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) A prize may not be paid to 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.
(4) 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.
(5) 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.
(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.
(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.
(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.
(9) A ticket or share may not be purchased by, and a prize 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.
(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.
(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 (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. [1985 c.2 §4(6); 1985 c.302 §4(6); 1985 c.458 §1(6); 1985 c.520 §1(6); 1987 c.268 §1; 1991 c.22 §1; 1991 c.613 §4; 1993 c.206 §1; 1995 c.478 §3; 1997 c.249 §160; 1999 c.203 §1; 2003 c.58 §1]
461.251 Reporting of certain prize winners to Department of Human Services. For the purpose of complying with section 4009 of the Agricultural Act of 2014, P.L. 113-79, within seven days after paying a prize of $1,250 or more, the Director of the Oregon State Lottery shall notify the Department of Human Services of the name of the prize recipient, the Social Security number of the recipient, any other available identifying information about the recipient and the amount of the prize paid to the recipient. [2015 c.316 §2]
461.253 Voluntary assignment of prizes; petition for judicial order; issuance of order; commission intervention in proceeding. (1) Payment of a prize may be made to any person pursuant to a voluntary assignment of the right to receive future periodic prize payments, in whole or in part. Payment of a prize pursuant to an assignment made under this section must be made to a person designated as assignee under an appropriate judicial order of the circuit court for the county in which the assignor resides or in which the headquarters of the Oregon State Lottery Commission are located.
(2) A copy of the petition for an order described in subsection (1) of this section and copies of all notices of any hearing in the matter shall be served on the commission not later than 10 days prior to any hearing or entry of any order. A nonrefundable processing fee of $500 for each assignee shall be paid to the commission when the copy of the petition is served on the commission.
(3) The commission may intervene in a proceeding to protect the interests of the commission but shall not be considered an indispensable or necessary party. Notwithstanding the failure or refusal of the commission to appear in any proceeding, the Director of the Oregon State Lottery, the commission and the state shall be immune from liability for, and shall be discharged of all further liability with respect to, any amounts paid according to the terms of an order issued under this section.
(4) A circuit court receiving a petition may issue an order approving the assignment and directing the commission to pay to the assignee all future prize payments so assigned upon finding that all of the following conditions have been met:
(a) The assignment has been memorialized in writing and executed by the assignor and is subject to Oregon law;
(b) The assignor provides a sworn declaration to the court attesting that the assignor is represented by independent legal counsel in connection with the assignment, has had the opportunity to receive independent financial and tax advice concerning the effects of the assignment, is of sound mind and is not acting under duress;
(c) The proposed assignment does not and will not include or cover payments or portions of payments that are subject to a 30-day hold under ORS 461.715, unless appropriate provision is made in the order to satisfy the obligations giving rise to the hold; and
(d) The proposed assignment and court order shall not require the commission to divide any prize payment so that portions of a single prize payment must be made to more than three persons at a time.
(5) After receipt of a certified copy of a court order granted under this section, the commission shall acknowledge in writing to both the assignor and the assignee the agreement of the commission to make the prize payments in accordance with the provisions of the order. The commission shall thereafter make the prize payments in accordance with the order.
(6) No modification or amendment to any assignment authorized by this section, and no additional or subsequent assignment of any prize, shall be valid or binding on the commission unless the modification, amendment or assignment is authorized by a separate judicial order issued in compliance with this section. [1995 c.478 §2]
461.257 Judicial order suspending voluntary assignment laws upon finding of adverse tax consequences for all prize winners. Notwithstanding ORS 461.250 (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 (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 (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 (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. [1995 c.478 §5; 2003 c.58 §6]
461.260 Distribution of tickets and shares; rules. Upon recommendation of the Director of the Oregon State Lottery, the commission shall adopt rules specifying the manner of distribution, dissemination or sale of lottery tickets or shares to lottery game retailers or directly to the public, and the incentives, if any, for Oregon State Lottery employees, if any, engaged in such activities. [1985 c.2 §4(7); 1985 c.302 §4(7); 1985 c.458 §1(7); 1985 c.520 §1(7)]
461.300 Selection of retailers; rules; contracts. (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. 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. A person under the age of 18 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) Except when the director recommends, and the commission concludes, that it is reasonable and prudent to waive disclosure requirements under this section and that 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 nonprofit private club as described in ORS 471.175, the officers, each director who owns or controls three percent or more of the voting stock and each stockholder who owns 10 percent or more of the outstanding stock in such corporation.
(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 nonprofit 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 nonprofit private club as described in ORS 471.175, the officers, each director who owns or controls three percent or more of the voting stock and each stockholder who owns 10 percent or more of the outstanding stock of the parent corporation thereof.
(E) If the lottery game retailer is a partnership, joint venture or limited liability company, all of the general partners, limited partners, joint venturers, members of a limited liability company whose investment commitment or membership interest is 10 percent or more, and managers of a limited liability company.
(F) If the parent company, general partner, limited partner, joint venturer, stockholder, member or manager of a limited liability company is itself a corporation, trust, association, subsidiary, partnership, joint venture or limited liability company, then the director may require that all of the information required by this 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 paragraph shall be disclosed for such immediate family member as if the family member were a video lottery game retailer.
(H) 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 be required 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 nonprofit 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 nonprofit private club and each manager in charge of the food, beverage, lottery or other gambling-related activities of the nonprofit private club.
(J) Any other person required by rule of the commission.
(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) 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 is not assignable or transferable.
(4) The director may terminate a contract with a lottery game retailer based on the grounds for termination included in the contract 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 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.
(6) The commission shall adopt by rule an alternative dispute resolution process for disputes arising from a contract with a lottery game retailer that must be included in every contract between the commission and lottery game retailers. The commission shall develop the dispute resolution process required by this section in conformity with ORS 183.502. [1985 c.2 §5(1) to (4); 1985 c.302 §5(1) to (4); 1995 c.728 §1; 1997 c.483 §§1,2; 1999 c.351 §17; 2003 c.58 §2; 2005 c.166 §1; 2005 c.267 §1; 2010 c.33 §3]
461.310 Compensation for retailers. Upon recommendation of the Director of the Oregon State Lottery, the commission shall determine the compensation to be paid to lottery game retailers for their sales of lottery tickets or shares. Until the commission shall otherwise determine, the compensation paid to lottery game retailers shall be five percent of the retail price of the tickets or shares plus an incentive bonus of one percent based on attainment of sales volume or other objectives specified by the director for each lottery game. In cases of a lottery game retailer whose rental payments for premises are contractually computed in whole or in part, on the basis of a percentage of retail sales, and where such computation of retail sales is not explicitly defined to include sales of tickets or shares in a state-operated lottery, the compensation received by the lottery game retailer from the Oregon State Lottery shall be deemed to be the amount of the retail sale for the purposes of such contractual computation. [1985 c.2 §5(5); 1985 c.302 §5(5)]
461.330 Display of certificate of authority; bond or letter of credit; payments for tickets or shares. (1) No lottery tickets or shares shall be sold by a lottery game retailer unless the lottery game retailer has on display on the premises a certificate of authority signed by the Director of the Oregon State Lottery to sell lottery tickets or shares.
461.335 Temporary letter of authority; grounds for revocation. (1) The Oregon State Lottery Commission may grant a temporary letter of authority for a period not to exceed 90 days on change of ownership applications for certificates of authority granted under this chapter if the applicant pays the fee prescribed by the commission for a temporary letter of authority. A temporary letter of authority issued under this section does not constitute a lottery game retail contract for the purposes of ORS 461.300.
(2) The commission, summarily and without prior administrative proceedings, may revoke a temporary letter of authority any time during the 90 days if the commission finds that any of the grounds for refusing a lottery game retail contract or terminating a contract under ORS 461.300 exist.
(3) A person subject to subsection (2) of this section shall be given an interview under the direction of the commission if the person requests an interview prior to revocation of a temporary letter of authority. However, the proceedings are not a contested case under ORS chapter 183. [2001 c.150 §2]
461.400 Procurements. Notwithstanding other provisions of law, the Director of the Oregon State Lottery may purchase or lease such goods or services as are necessary for effectuating the purposes of this chapter. The commission may not contract with any private party or nongovernmental entity for the operation and administration of the Oregon State Lottery established by this chapter. However, the foregoing shall not preclude procurements which integrate functions such as lottery game design, supply of goods and services, advertising and public relations. In all procurement decisions, the director and Oregon State Lottery Commission shall take into account the particularly sensitive nature of the state lottery, shall consider the lottery’s potential contribution to the development of and citizen’s access to the state’s telecommunications infrastructure, and shall act to promote and insure integrity, security, honesty and fairness in the operation and administration of the state lottery and the objective of raising net revenues for the benefit of the public purpose described in section 4, Article XV of the Constitution of the State of Oregon. [1985 c.2 §6(1); 1985 c.302 §6(1); 1991 c.962 §11]
461.410 Vendor disclosure for major procurements. (1) In order to allow an evaluation by the Oregon State Lottery of the competence, integrity, background, character and nature of the true ownership and control of lottery vendors, any person who submits a bid, proposal or offer as part of a procurement for a contract for the printing of tickets used in any lottery game, any goods or services involving the receiving or recording of number selection in any lottery game, or any goods or services involving the determination of winners in any lottery game, which are hereby referred to as major procurements, shall first disclose at the time of submitting such bid, proposal or offer to the state lottery all of the following items:
(k) A disclosure of any economic interest as contemplated by ORS 244.060 and 244.070, known to the lottery vendor to be held by any of the persons named in ORS 244.050 (1)(a), any lottery commissioner, the lottery director, or the assistant directors of the state lottery, in any lottery vendor or its control persons.
461.420 Contract with vendor convicted of crime prohibited. No contract for a major procurement with any lottery vendor shall be entered into if any control person of that lottery vendor has been convicted of a crime, unless, after investigation, the finding of the commission determines that the crime bears no relationship to the lottery vendor’s ability to perform honestly in carrying out the contract. [1985 c.2 §6(2)(m); 1985 c.302 §6(2)(n)]
461.430 Contractor required to comply with applicable laws; performance bond. (1) A lottery contractor shall perform its contract consistent with the laws of this state, federal law, and laws of the state or states in which the lottery contractor, in whole or in part, performs services or produces goods required by the contract.
(2) At the time specified in the contract, a lottery contractor shall post performance security with the Oregon State Lottery Commission in a form and an amount acceptable to the commission and issued by a surety, financial institution, insurer, escrow agent or other person acceptable to the commission if the lottery contractor:
(a) Prints tickets used in a lottery game;
(b) Provides goods or performs services involving the receipt or recording of number selections in a lottery game; or
(c) Provides goods or performs services involving the determination of winners in a lottery game. [1985 c.2 §6(3),(4); 1985 c.302 §6(3),(4); 1989 c.418 §1; 2009 c.185 §1]
461.440 Commission’s authority to contract; rules. Subject to rules adopted by the commission, the Director of the Oregon State Lottery may enter into all contracts necessary to accomplish the purposes of this chapter. The rules shall cover contracts for materials, supplies, equipment, services and professional services and to the extent that is reasonable shall follow the public policy of open competitive procurement. The commission shall also consider security, competence, experience, timely performance and maximization of net revenues in developing rules governing procurement actions. All contract awards for major procurements shall be approved by the commission. [1985 c.2 §6(5); 1985 c.302 §6(5)]
461.445 Policy on payment to contractors. In establishing its schedule of payments to contractors, the Oregon State Lottery Commission shall undertake to develop a system that maximizes the net revenue to the state for the public purpose consistent with providing a reasonable rate of return for contractors. [1991 c.962 §12]
Note: 461.445 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 461 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.
461.500 Lottery to be self-supporting; allocation of revenues. (1) Except for such moneys as are necessary to temporarily fund the start-up of the state-operated lottery established by the Constitution of the State of Oregon and this chapter, the Oregon State Lottery shall operate as a self-supporting revenue-raising agency of state government and appropriations, loans or other transfers of state funds may not be made to it.
(2) At least 84 percent of the total annual revenues from the sale of state lottery tickets or shares shall be returned to the public in the form of prizes and net revenues benefiting the public purpose described in Article XV, section 4, of the Constitution of the State of Oregon. At least 50 percent of the total annual revenues shall be returned to the public in the form of prizes as described in this chapter. All unclaimed prize money shall remain the property of the commission and shall be allocated to the benefit of the public purpose.
(3) No more than 16 percent of the total annual revenues shall be allocated for payment of expenses of the state lottery as described in this chapter. To the extent that expenses, including the contingency reserve, of the state lottery are less than 16 percent of the total annual revenues as described in this chapter, any surplus funds shall also be allocated to the benefit of the public purpose.
(4) For the purpose of ensuring the integrity, security, honesty and fairness of the state lottery, the Oregon State Lottery may use moneys allocated, as costs of administration, for the payment of expenses of the state lottery pursuant to subsection (3) of this section for expenses incurred to:
(a) Adopt and implement rules intended to minimize problem gambling risks and mitigate problem gambling harms;
(b) Advertise the availability of problem gambling treatment programs in this state, including contact information for the programs;
(c) Collect and report data, and establish metrics, regarding problem gambling; and
(d) Cooperate with or assist the Oregon Health Authority and providers of problem gambling treatment programs to the extent that the cooperation or assistance is consistent with the mission, described in ORS 461.200, to operate the state lottery so as to produce the maximum amount of net revenues to benefit the public purpose described in Article XV, section 4, of the Constitution of the State of Oregon, commensurate with the public good. [1985 c.2 §1(4),(5); 1985 c.302 §1(4),(5); 2014 c.56 §1]
461.510 State Lottery Fund; types of disbursements. (1) All money payable to the commission shall be deposited in a fund known as the State Lottery Fund. The State Lottery Fund shall receive all proceeds from the sale of lottery tickets or shares, the temporary loan for initial start-up costs and all other moneys credited to the Oregon State Lottery from any other lottery-related source. The State Lottery Fund is continuously appropriated for the purpose of administering and operating the commission and the state lottery.
(5) The state lottery shall pay all prizes and all of its expenses out of the revenues it receives from the sale of tickets and shares to the public and turn over the net proceeds therefrom to a fund to be established by the Legislative Assembly from which the Legislative Assembly shall make appropriations for the benefit of the public purpose described in section 4, Article XV of the Constitution of the State of Oregon.
(6) Moneys in the State Lottery Fund may be invested as provided in ORS 293.701 to 293.857. Interest earned by the fund shall be credited to the fund. [1985 c.2 §7(1) to (5); 1985 c.302 §7(1) to (5); 1987 c.268 §2; 1989 c.966 §52; 2009 c.821 §30b]
461.512 Management of lottery moneys received by county; report on use of moneys. (1) For purposes of this section:
(c) Work and services provided by the person employed under subsection (2) of this section. [2011 c.385 §1]
Note: 461.512 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 461 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.
461.520 Establishment of checking accounts and petty cash fund. (1) The Director of the Oregon State Lottery is authorized to establish in the State Treasury checking accounts as may be required to disburse by check the payment of any disbursement authorized by ORS 461.510 (2) from the State Lottery Fund as well as any transfer to the State Lottery Fund as may be required.
(2) Notwithstanding the provisions of ORS 461.510 (1), the director is authorized to direct the deposit of any and all moneys payable to the commission to the credit of any checking account in the State Treasury created for processing State Lottery Fund moneys.
(3) The commission is authorized to establish a petty cash fund in an amount not to exceed $1,000 from any funds made available to the commission. The petty cash fund shall operate in accordance with the procedures defined in ORS 293.180. [1985 c.302 §7(6)]
461.530 Oregon State Lottery Fund. There is hereby created within the General Fund the Oregon State Lottery Fund which is continuously appropriated for the purpose of administering and operating the commission and the Oregon State Lottery. [1985 c.2 §1(6); 1985 c.302 §1(6)]
461.535 Intercollegiate Athletic Fund. The Intercollegiate Athletic Fund is created separate and distinct from the General Fund. The fund shall consist of revenues credited to the Sports Lottery Account under ORS 461.543 (4) and any other revenues available to the fund. [1989 c.828 §1; 1991 c.461 §81; 1991 c.962 §3; 2005 c.810 §1]
461.540 Administrative Services Economic Development Fund. (1) There is established in the General Fund of the State Treasury the Administrative Services Economic Development Fund. All moneys transferred from the State Lottery Fund, interest earnings credited to this fund and other moneys authorized to be transferred to this fund from whatever source are appropriated continuously for any of the following public purposes:
(b) Furthering economic development in Oregon; or
(c) Financing public education.
(2) Moneys shall be transferred from the Administrative Services Economic Development Fund to:
(a) The Education Stability Fund established under ORS 348.696 as described in section 4, Article XV of the Oregon Constitution; and
(b) The School Capital Matching Fund established under ORS 286A.806 as described in section 4, Article XI-P of the Oregon Constitution.
(3) As used in this section and section 4, Article XV of the Oregon Constitution:
(a) “Creating jobs” includes, but is not limited to:
(A) Supporting the creation of new jobs in Oregon;
(B) Helping prevent the loss of existing jobs in Oregon;
(C) Assisting with work transition to new jobs in Oregon; or
(D) Training or retraining workers.
(b) “Education” includes, but is not limited to, the Education Stability Fund established under ORS 348.696 and specific programs that support the following:
(A) Prekindergartens;
(B) Elementary and secondary schools;
(C) Community colleges;
(E) Continuing education;
(F) Workforce training and education programs; or
(G) Financial assistance to Oregon students.
(c) “Furthering economic development” includes, but is not limited to, providing:
(A) Services or financial assistance to for-profit and nonprofit businesses located or to be located in Oregon;
(B) Services or financial assistance to business or industry associations to promote, expand or prevent the decline of their businesses; or
(C) Services or financial assistance for facilities, physical environments or development projects, as defined in ORS 285B.410, that benefit Oregon’s economy. [1985 c.302 §7(7); 1995 c.12 §7; 2002 s.s.3 c.6 §18; 2005 c.835 §27; 2009 c.872 §3; 2011 c.699 §8]
461.543 Sports Lottery Account; distribution of revenues. (1) Except as otherwise specified in subsection (5) of this section, the Sports Lottery Account is continuously appropriated to and shall be used by the Higher Education Coordinating Commission to fund sports programs at public universities listed in ORS 352.002. Seventy percent of the revenues in the fund shall be used to fund nonrevenue producing sports and 30 percent shall be used for revenue producing sports. Of the total amount available in the fund, at least 50 percent shall be made available for women’s athletics.
(2) The commission shall allocate moneys in the Sports Lottery Account among the public universities, giving due consideration to:
(a) The athletic conference to which the public university belongs and the relative costs of competing in that conference.
(b) The level of effort being made by the public university to generate funds and support from private sources.
(3) As used in subsections (1) to (3) of this section, “revenue producing sport” is a sport that produces net revenue over expenditures during a calendar year or if its season extends into two calendar years, produces net revenue over expenditures during the season.
(4) An amount equal to one percent of the moneys transferred to the Administrative Services Economic Development Fund from the State Lottery Fund shall be allocated from the Administrative Services Economic Development Fund to the Sports Lottery Account.
(5) The amounts received by the Sports Lottery Account shall be allocated as follows:
(a) Eighty-eight percent for the purposes specified in subsections (1) to (3) of this section, but not to exceed $8 million annually, adjusted annually pursuant to the Consumer Price Index, as defined in ORS 327.006.
(b) Twelve percent for the purpose of scholarships, to be distributed equally between scholarships based on academic merit and scholarships based on need, as determined by rule of the commission, but not to exceed $1,090,909 annually.
(c) All additional money to the commission for the Oregon Opportunity Grant program under ORS 348.260. [1989 c.828 §§2,4(3) and (4); 1991 c.461 §82; 1991 c.780 §28; 1999 c.704 §25; 1999 c.1070 §16; 2005 c.810 §2; 2011 c.637 §275; 2013 c.768 §143b; 2015 c.27 §52; 2015 c.624 §6]
461.544 Use of proceeds of video lottery games. All net proceeds from video lottery games shall be allocated to the Administrative Services Economic Development Fund. [1991 c.461 §§1,78; 1993 c.18 §118; 1995 c.814 §9]
Note: 461.544 to 461.549, 461.555, 461.725 and 461.740 were enacted into law by the Legislative Assembly but were not added to or made a part of ORS chapter 461 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.
461.545 [1989 c.828 §7; repealed by 1991 c.461 §79 and 1991 c.962 §15]
461.546 [1991 c.962 §2a; 1993 c.18 §119; repealed by 1995 c.814 §4]
461.547 Distribution of certain video lottery revenues to counties for economic development. (1) The Oregon State Lottery Commission shall transfer an amount equal to 2.5 percent of the net receipts from video lottery games allocated to the Administrative Services Economic Development Fund to counties for economic development activities. Ninety percent of the moneys shall be distributed to each county in proportion to the gross receipts from video lottery games from each county. Ten percent of the moneys shall be distributed in equal amounts to each county.
(a) “Gross receipts from video lottery games” means the amount of money inserted into video lottery games plus the value of any free game prizes used by players for subsequent games.
(b) “Net receipts from video lottery games” means the amount of money that is received from the operation of video lottery games after the payment of prizes but prior to any other payment. [1991 c.461 §94; 1993 c.18 §118a; 2003 c.734 §§10,10a; 2007 c.51 §1]
Note: See note under 461.544.
461.548 Video lottery proceeds to be treated separately from other lottery proceeds. Notwithstanding any other provision of law, the Oregon State Lottery Commission shall meet the constitutional requirements for prizes and administrative costs separately for video and all other lottery games. The lottery commission shall not intermingle the results of video lottery games for the purpose of calculating the allowable limit on administrative expenses of other lottery games. [1991 c.962 §14]
461.549 Use of video lottery proceeds for treatment of gambling-related behavioral problems. (1) The Legislative Assembly finds that emotional and behavioral problems related to gambling may impose additional costs on state government and on the state economy, such as additional mental health expenditures, increased law enforcement costs and lost economic output. The use of a portion of the net receipts from video lottery games to pay the costs of preventing and treating emotional and behavioral problems related to gambling promotes the creation of jobs and this state’s economic development by offsetting and treating the negative economic consequences of such behavior.
(2) In each fiscal quarter of a biennium, commencing with the fifth fiscal quarter of the biennium beginning July 1, 2013, there is allocated from the Administrative Services Economic Development Fund to the Problem Gambling Treatment Fund established by ORS 413.522 an amount equal to the greater of:
461.550 Expenditure limitation not applicable to lottery. All expenditures from the State Lottery Fund or the fund established by the Legislative Assembly to disburse net lottery proceeds are exempt from any state expenditure limitation. [1985 c.302 §8(8)]
461.553 ODAS Economic Development Distributions Fund. (1) The ODAS Economic Development Distributions Fund is established in the State Treasury, separate and distinct from the General Fund. Interest earned on the moneys in the ODAS Economic Development Distributions Fund shall be credited to the fund. The fund consists of lottery bond proceeds appropriated to the Oregon Department of Administrative Services for further distribution to public or private entities that do not receive appropriations directly from the Legislative Assembly and interest credited to the fund.
(2) Moneys in the fund are continuously appropriated to the Oregon Department of Administrative Services for the purpose of distributions described in subsection (1) of this section. [2013 c.786 §23]
Note: 461.553 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 461 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.
461.555 Capital Construction Trust Fund; sources; uses. (1) There is established in the State Treasury a Capital Construction Trust Fund separate and distinct from the General Fund. Interest on the fund shall accrue to the fund.
(2) The fund shall consist of amounts allocated to it from the Administrative Services Economic Development Fund.
(3) The fund is to be used to meet capital construction costs. [1991 c.461 §77]
461.557 DOT Economic Development Distributions Fund. (1) The DOT Economic Development Distributions Fund is established in the State Treasury, separate and distinct from the General Fund. Interest earned on the moneys in the DOT Economic Development Distributions Fund shall be credited to the fund. The fund consists of lottery bond proceeds appropriated to the Department of Transportation for further distribution to public or private entities that do not receive appropriations directly from the Legislative Assembly and interest credited to the fund.
(2) Moneys in the fund are continuously appropriated to the Department of Transportation for the purpose of distributions described in subsection (1) of this section. [2013 c.786 §24]
Note: 461.557 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 461 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.
461.558 [2009 c.872 §1; 2011 c.699 §9; repealed by 2013 c.722 §37]
461.559 Reversion of lottery allocations. (1) On December 31 in each odd-numbered year, all amounts remaining unspent by a state agency from statutory allocations made from the Administrative Services Economic Development Fund to that agency for the prior biennium shall revert to the Administrative Services Economic Development Fund.
(2) Subsection (1) of this section does not apply to allocations for debt service, capital construction, continuing contracts, contested claims or special allocations designated by legislative action. [2013 c.722 §86; 2015 c.840 §29]
Note: 461.559 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 461 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.
461.560 Taxation of sales and prizes. (1) No state or local taxes shall be imposed upon the sale of lottery tickets or shares of the Oregon State Lottery established by this chapter or any prize awarded by the state lottery established by this chapter that does not exceed $600. A prize awarded by the state lottery that is greater than $600 shall be subject to tax under ORS chapters 314 to 318 and any other applicable state or local tax. For purposes of this section, “prize awarded by the state lottery” includes a prize awarded by a multistate lottery association of which the Oregon State Lottery is a member if the ticket upon which the prize is awarded was sold in this state.
(2) A city, county or other political subdivision in this state may not impose, by charter provision or ordinance, or collect a tax that is imposed on lottery game retailers only and that is measured by or based upon the amount of the commissions or other compensation received by lottery game retailers for selling tickets or shares in lottery games. However, if a city, county or other political subdivision levies or imposes generally on a nondiscriminatory basis throughout the jurisdiction of the taxing authority an income, gross income or gross receipts tax, as otherwise provided by law, such tax may be levied or imposed upon lottery game retailers. [1985 c.2 §8(1); 1985 c.302 §8(1); 1995 c.95 §1; 1997 c.849 §1; 1999 c.143 §6]
461.600 Sales to minors. (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. [1985 c.2 §5(6); 1985 c.302 §5(6); 2003 c.58 §3]
461.700 Additional disclosure requirements; costs of investigation. (1) Any person required to submit disclosure information under this chapter, in addition to the requirements specifically listed in this chapter, shall also submit for each individual the true name, as well any other name used, date of birth, place of birth, Social Security number, current residence address, and residence address for the last 10 years, current marital status including how long, spouse’s name, address, date of birth and Social Security number. The person required to disclose must submit an individual sworn statement as to any criminal convictions and the nature thereof. The sworn statement must also contain authorization for the Attorney General and the Assistant Director for Security to confirm with the Oregon Department of Revenue and the United States Internal Revenue Service the truthfulness of the sworn statement with regard to tax matters. The commission shall develop a disclosure form which identifies the information required to be disclosed, including a certification that the information provided is correct. The form shall be sworn and bear the warning that the applicant bears responsibility for excessive investigation costs and that the providing of false information constitutes the crime of false swearing under ORS 162.075 which is a Class A misdemeanor.
461.710 [Formerly 284.430; renumbered 280.518 in 1991]
461.715 Holding of certain lottery prizes for child support; rules; procedure. (1) The Oregon State Lottery Commission, by rule, shall develop procedures whereby:
(a) Before paying any portion of a lottery prize in excess of $600, the lottery commission shall check the name and Social Security number of the person entitled to payment against a computer database containing the names and Social Security numbers of obligors who are delinquent in paying child support obligations.
(b) When the person is listed in the database, the lottery commission shall:
(C) Notify the Division of Child Support of the Department of Justice that a delinquent obligor has won a lottery prize or is entitled to payment on a lottery prize.
(c) If a garnishment proceeding is initiated within the 30-day hold period, the lottery commission shall continue to hold any payment to the person pending disposition of the proceeding.
(d) If a garnishment proceeding is not initiated within the 30-day hold period, the lottery commission shall make payment on the prize to the person at the end of the 30-day hold period or when the division notifies the lottery commission that a garnishment proceeding will not be initiated, whichever is sooner.
(2) The lottery commission shall establish and operate a data match system using automated data exchanges with the division that identifies delinquent child support obligors. Any information necessary to identify delinquent obligors and hold a payment on a prize shall be available to the lottery commission through the data match system.
(3) The Department of Justice and the Oregon State Lottery Commission shall enter into an agreement regarding the procedures required by subsections (1) and (2) of this section. [1991 c.613 §§6,7; 2001 c.455 §25; 2003 c.73 §69]
461.719 Holding of certain lottery prizes for overpayment of assistance; rules; procedures. (1) As used in this section, “assistance” includes:
(a) Medical assistance as defined in ORS 414.025.
(b) Public assistance as defined in ORS 411.010.
(c) Supplemental nutrition assistance provided under ORS 411.806 to 411.845.
(c) If a garnishment proceeding is initiated under ORS 18.600 to 18.850 within the 30-day hold period, the commission must continue to hold any payment to the person pending disposition of the proceeding.
(d) If a garnishment proceeding is not initiated under ORS 18.600 to 18.850 within the 30-day hold period, the commission shall pay the prize to the person at the end of the 30-day hold period or when the department or authority notifies the commission that a garnishment proceeding will not be initiated, whichever is sooner.
461.720 [1985 c.829 §1; 1987 c.506 §27; renumbered 171.845 in 1991]
461.725 Enforcement officers to enforce prohibition on gray machines. Out of the funds available to the Oregon State Lottery Commission to meet the administrative expenses of the Oregon State Lottery, the lottery commission shall employ or contract for at least three undercover enforcement officers to enforce the prohibition on gray machines imposed by ORS 162.305, 164.377, 166.715, 167.117, 167.164, 167.166, 461.210, 461.215, 461.217, 461.400, 461.445, 461.535, 461.548, 461.725 and 464.250. [1991 c.962 §18; 1995 c.814 §3]
461.730 [1989 c.909 §49; renumbered 447.255 in 1991]
461.740 Policy on hiring by firms receiving lottery-funded benefits. (1) It is the policy of the State of Oregon that any firm receiving benefit from state lottery-funded programs should undertake a good faith effort to hire and retain as employees low-income individuals who have received job training assistance from publicly funded job training providers.
(2) The Oregon Business Development Department may require any firm receiving benefit from state lottery-funded programs the department administers to enter into a first-source hiring agreement with publicly funded job training providers.
(3) Publicly funded job training providers shall coordinate their services and establish an agreement outlining the process by which they will respond to firms receiving benefit. This agreement shall be submitted to the department for its review and approval.
(a) “Firm receiving benefit” means any business that benefits directly or substantially from any program financed by state lottery funds and is certified as such a firm by the state agency that administers the lottery-funded program.
(b) “First-source hiring agreement” means an agreement between a firm receiving benefits and a publicly funded job training provider whereby the job provider refers qualified candidates to the firm for new jobs and job openings, excluding professional, managerial, technical and seasonal positions which the Director of the Oregon Business Development Department determines cannot be filled by persons likely to be referred by publicly funded job training providers.
(c) “Publicly funded job training provider” includes, but is not limited to, community colleges, service providers under the federal Workforce Investment Act Title I-B (29 U.S.C. 2801 et seq.) and other similar programs. [1989 c.778 §1; 1991 c.105 §1; 2001 c.684 §28]
461.800 Short title. ORS 461.800 to 461.820 shall be known as and may be cited as the Oregon State Lottery Responsible Gambling Code of Practices Act. [2015 c.478 §5]
461.810 Definitions. As used in sections ORS 461.800 to 461.820:
(1) “Problem gambling” means playing lottery games in a manner that is characterized by difficulty in limiting money or time spent on gambling, which leads to adverse consequences for the gambler, the gambler’s family or the community.
(2) “Responsible gambling” means the provision of safe, socially responsible and supportive gambling environments in which the potential for harm that is associated with gambling is minimized and people can make informed decisions about participating in gambling.
(3) “Responsible or problem gambling community” means persons interested in responsible gambling or problem gambling. [2015 c.478 §3]
461.820 Promotion of responsible gambling. (1) The Oregon State Lottery Commission shall operate the Oregon State Lottery, in compliance with the Oregon State Lottery Responsible Gambling Code of Practice described in ORS 461.200:
(a) In environments that:
(A) Encourage responsible gambling practices; and
(B) Discourage problem gambling.
(b) In a manner that:
(A) Empowers individuals to make informed decisions about playing lottery games by providing information about responsible gambling and problem gambling; and
(B) Minimizes harm to individuals, families and communities caused by problem gambling.
(2) The lottery commission shall:
(a) Evaluate the operation of the state lottery annually, using stakeholder interviews, research and analysis of best in class gambling practices and consultations with researchers in the responsible or problem gambling community.
(b) Use a dynamic approach to developing new practices to facilitate responsible gambling and to discourage problem gambling.
(c) Rely on research to inform all areas of responsible gambling and problem gambling resource awareness efforts, providing adequate funding to support high-quality research that is performed by independent researchers and that protects the rights of human subjects.
(d) Engage a wide range of stakeholders in the responsible or problem gambling community to provide input regarding the development of lottery games and game marketing and advertising.
(e) Promote a shared sense of responsibility with lottery game retailers and educate lottery game retailers and retailers’ employees about how to provide an environment to facilitate responsible gambling and discourage problem gambling.
(f) Promote a shared sense of responsibility with state lottery employees and educate those employees about how to facilitate awareness of responsible gambling and problem gambling resources for assistance.
(g) Apply evidence-based considerations to the implementation of lottery games and game features to facilitate informed decision-making by lottery players and discourage problem gambling, including the incorporation of features that:
(A) Inform lottery players about the game being played;
(B) Provide lottery players with information about the status of their gambling and an opportunity to take a break from gambling; and
(C) Provide lottery players with information about responsible gambling and problem gambling resources.
(h) Integrate messages that promote informed decision-making by lottery players into a variety of broadly disseminated communications, including advertising and marketing, about lottery games.
(i) Use communications, including advertising and marketing, that:
(A) Do not appeal specifically to vulnerable groups, including individuals under 18 years of age; and
(B) Report accurately the odds of winning lottery games. [2015 c.478 §4]