177-045-0060 Equipment Loss or Damage (1) Loss Claim Under $2,500: (a) A retailer is responsible for the actual cost of replacing, repairing, or removing lost, damaged, or destroyed Lottery equipment when the loss per occurrence is under $2,500 and the retailer: (A) Failed to exercise reasonable care to protect the equipment from damage, destruction, or theft; (B) Intentionally damaged, destroyed, or stole the equipment, or allowed others to damage, destroy, or steal Lottery equipment; or (C) Unless waived by the Director, previously had a loss claim (whether charged to the retailer or not) within the preceding twelve months. (b) The Lottery will investigate whether a retailer failed to exercise reasonable care to prevent loss, damage, or destruction of Lottery equipment in the possession of the retailer, or whether the retailer intentionally damaged, destroyed, or stole, or allowed others to damage, destroy, or steal Lottery equipment. The Lottery Director shall determine if the retailer is responsible for the actual costs of replacing, repairing, or removing the Lottery equipment under subsection (a) of this section. If the retailer is determined to be responsible, the Lottery will bill the retailer and may electronically debit the retailer’s account for the amount billed. (2) Ordinary Wear and Tear Excepted: A retailer is not responsible for costs of replacing, repairing, or removing Lottery equipment resulting from ordinary wear and tear due to normal use of the equipment. (3) Loss Claim of $2,500 or More: Notwithstanding section (1) of this rule, a Lottery retailer is responsible for any loss, damage, or destruction to Lottery equipment when the loss is $2,500 or more per occurrence. In the event of such loss, damage, or destruction, the Lottery will report it to the State of Oregon Department of Administrative Services Risk Management Division in accordance with ORS Chapter 278. Any claim that the Lottery may have against a retailer arising from the loss, damage, or destruction of such property is subrogated to the Risk Management Division upon payment of the claim by Risk Management to the Lottery. When requested, the retailer must reimburse Risk Management the amount paid to the Lottery for replacement or repair of the lost, damaged, or destroyed equipment. (4) Loss Management: At its option, the Lottery may repair, replace, or remove any lost, damaged, or destroyed Lottery equipment, none of which has any effect on a retailer’s liability to the State of Oregon, if any, for the loss, damage, or destruction of such equipment. (5) Contract Termination: In addition to requiring payment for the loss, damage, or destruction of Lottery equipment, the Director may terminate the retailer contract of any Lottery retailer who failed to exercise reasonable care to protect Lottery’s equipment. The Director shall terminate the retailer contract of any Lottery retailer who intentionally damages, destroys, or steals, or allows others to damage, destroy, or steal Lottery equipment. (6) Threats: The Director may terminate the retailer contract of any Lottery retailer who threatens to damage or destroy Lottery equipment. Statutory/Other Authority: ORS 461 & OR Const. Art. XV & Sec. 4(4) Statutes/Other Implemented: ORS 461.200, 461.217 & 461.300 History: LOTT 9-2004, f. & cert. ef. 5-26-04 LOTT 5-2004(Temp), f. & cert. ef. 4-6-04 thru 6-25-04 LOTT 1-2004(Temp), f. & cert. ef. 1-5-04 thru 6-25-04