Oregon Administrative Rules › Chapter 177 - OREGON STATE LOTTERY › Division 37 - LOTTERY VENDOR DISCLOSURE RULES › Section 177-037-0070 - Criteria for Denying a Vendor or Control Person Application or Contract

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
General
: Before a Contract for a Major or Sensitive Procurement is
			 Awarded, a security background investigation must be conducted by the Assistant
			 Director for Security for any Vendor who is selected to be Awarded the
			 Contract. The Assistant Director for Security shall conduct any other security
			 background investigation specified by the Director.
(2)
Director's Determination
:
			 The Director may deny or revoke approval to be a Lottery Contractor to any
			 Vendor or Contractor when a security background investigation determines:
(a)
Business Qualifications
: The
			 Vendor or Contractor does not demonstrate, either individually or through its
			 employees or Control Persons, that the business has the ability and experience
			 to establish, operate, and maintain the business operations necessary to
			 provide the Goods or Services required in the Solicitation Document or under
			 the Contract, or to provide the security necessary to protect sensitive and
			 secure Lottery information, materials, or systems.
(b)
Financing
: The Vendor or
			 Contractor does not demonstrate adequate financing to be able to provide the
			 Goods or Services as required for performance of the Contract.
(c)
Integrity
: The Vendor, a
			 Control Person of the Vendor, or any employee or subcontractor of the Vendor
			 the Lottery determines may have access to sensitive or secure Lottery
			 information, materials or systems:
(A)
Criminal Conviction
: Has been convicted of any crime in any
			 jurisdiction.
(B)
Gambling
			 Offense Conviction
: Has been convicted of any gambling offense in any
			 jurisdiction.
(C)
Conduct
			 Constituting a Crime
: Has been imposed with a civil judgment based in
			 whole or in part upon conduct which constitutes a crime.
(D)
Material Omission
: Has
			 omitted any material fact that was to be disclosed to the Lottery or its
			 authorized agents during an initial or subsequent security background
			 investigation.
(E)
Threat to
			 the Public Interest
: Is an individual or entity whose background,
			 including criminal, civil, and financial records, or whose reputation, or whose
			 personal or business associations, pose a threat to the public interest of the
			 state or to the security and integrity of the Lottery.
(F)
Character
: Is not of good
			 character, honesty, or integrity.
(G)
Material Misstatement
: Has
			 provided a material misstatement or untrue statement of a fact deemed to be
			 material by the Director.
(H)
Other Conduct
: Has engaged in conduct the Director determines may,
			 in any way, adversely affect the integrity, security, honesty or fairness of
			 the Lottery.
(I)
Access
: Refuses to provide access to records or to inspection of
			 any part of the business premises deemed necessary by the Lottery.
(J)
Association
: Has an
			 association with a person or business having a known criminal background, or a
			 person the Lottery Director determines is of disreputable character or conduct,
			 and which may adversely affect the general credibility, security, integrity,
			 honesty, fairness or reputation of the Lottery.
(d)
Ownership Interest
: The
			 Vendor is qualified to be approved as a Lottery Contractor, but there is an
			 ownership interest in the Vendor's business operation by a Person who is
			 unqualified or disqualified to be approved as a Lottery Contractor.
(e)
Tax Violation
: The Vendor is
			 in violation of any tax laws described in ORS
			 305.380(4).