177-037-0060 Vendor Application and Contract Disclosure Requirements (1) General: The Director may require any degree or type of disclosure deemed necessary to assure the security and integrity of the Lottery and Lottery games. (2) Forms and Procedures: The Director shall approve all the forms and procedures to be used by all Vendors who wish to apply for approval to be a Lottery Contractor. (3) Vendor Submission: A Vendor must complete the required application for approval to be a Lottery Contractor and provide any information and disclosures required, as determined by the Director and the Assistant Director of Security within the guidelines and timelines set forth in the Solicitation Document or as otherwise required by the Director and the Assistant Director for Security. (4) Complete Disclosure Required: The Director may reject an application for approval to be a Lottery Contractor if the Vendor has not provided all the information and disclosures required to be submitted or if any of the information or disclosures submitted is not accurate, current, or truthful. (5) Continuing Disclosure Requirement: If during the evaluation period for an Offer or Proposal there are any changes to the information or disclosures submitted, a Vendor must update the information as soon as possible. After the Award, a Vendor selected must immediately update any changes to the information or disclosures submitted. (6) Status Changes: Unless other standards are established in a Contract, during the term of the Contract any changes in the status of the Contractor, the status of a Control Person, or any employee or subcontractor for which information or disclosures were submitted, or the addition of any other Control Person, or the addition of any employee or subcontractor who may have access to sensitive or secure Lottery information, must be reported to the Director within thirty days of the known change. Those whose status has changed or who have been added as a Control Person or added as an employee or subcontractor who the Lottery determines may have access to sensitive or secure Lottery information will be required to submit the required information and disclosures. If there has been no change in Vendor status or Control Persons, the Vendor is required to certify annually on their vendor Contract anniversary date that there has been no change. (7) Burden of Proof: The burden of proof for satisfying the Lottery’s disclosure requirements resides with the Vendor or Contractor. (8) Vendor Consent: Each Vendor who submits an application for approval to be a Lottery Contractor must consent in writing to the examination of all accounts, bank accounts, and Vendor records under the Vendor’s possession or control. If required by the Director, a Vendor must permit an inspection of any portion of the Vendor’s business premises deemed necessary by the Lottery. (9) Investigation Costs: As authorized under ORS 461.700(2), the Director may charge a Vendor an amount necessary to reimburse the Lottery for the costs associated with conducting the security background investigation if the Director determines the costs of the investigation exceed the usual costs of such investigation. (10) Acceptance of Risk: Each Vendor or Contractor must accept any risk of adverse public notice, embarrassment, criticism, damages, or financial loss, including any publication or use by a third party, which may result from the disclosure or use by Lottery of any information or document submitted by the Vendor or Contractor. By submitting a Vendor application for approval to be a Lottery Contractor to the Lottery, the Vendor or Contractor expressly waives any claim against the State of Oregon, including the Lottery, the Director, the Commission, the Department of State Police, and their officers and employees for any and all damages resulting from the use or disclosure of any information or documents submitted to Lottery or from the use or disclosure of any information obtained by Lottery as a result of the security background investigation. (11) Indemnification: By submitting an application for approval to be a Lottery Contractor to the Lottery, the Vendor or Contractor agrees to indemnify, defend, and hold harmless the State of Oregon, the Lottery Commission, the Lottery, the Department of State Police, their agents, officers, employees, and representatives, from and against all claims, suits, actions, losses, damages, liabilities, costs, and expenses arising out of, or relating to, the use or disclosure of any information or disclosures submitted in the application for approval to be a Lottery Contractor or from the use or disclosure of any information obtained by Lottery as a result of the security background investigation. The Vendor’s or the Contractor’s obligations include, but are not limited to, any and all losses, damages, liabilities, settlements, judgments, fines, costs, fees, and expenses of any nature whatsoever, including, but not limited to, attorneys and other professional fees at trial and on appeal. (12) Chain of Custody: All required information and disclosures must be submitted in a secure manner and may only be opened for review by the Assistant Director for Security or his designee, or by the Director. (13) Submission Constitutes Consent: By submitting an Offer or Proposal, a Vendor binds itself, its officers, employees, agents, and any subcontractors to comply with all disclosure requirements established by the Director. Failure or refusal to comply with any applicable requirement may result in denial or revocation of a Contract Award. In the event of denial or revocation of the Award due to refusal or failure to comply with any applicable disclosure requirement set forth in these rules, the Vendor is liable under the bid bond or shall forfeit any security posted for the procurement. Statutory/Other Authority: OR Const., Art. XV, §4(4) & ORS 461 Statutes/Other Implemented: ORS 461.400, 461.410, 461.420, 461.430 & 461.440 History: LOTT 17-2005, f. 12-21-05, cert. ef. 12-31-05 LOTT 13-2005(Temp), f. & cert. ef. 11-3-05 thru 4-30-06