Chapter 461 — Chapter 461

ORS 461.010 Definitions. Unless the context requires otherwise, the definitions contained in this chapter shall govern the construction of this chapter

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ORS 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)]

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ORS 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)]

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ORS 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

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ORS 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)]

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ORS 461.050 Location of offices. The Oregon State Lottery shall have its principal offices in the capital city. [1985 c.302 §8(7)]

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ORS 461.055 [1995 c.341 §2; 1997 c.645 §1; 1999 c.1093 §16; 2003 c.794 §286; repealed by 2007 c.569 §1]

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ORS 461.100 Oregon State Lottery Commission; members; duties; meetings. (1) The Oregon State Lottery Commission is hereby created in state government

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ORS 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

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ORS 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

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ORS 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

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ORS 461.140 Annual budget report. The Oregon State Lottery Commission shall

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ORS 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

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ORS 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)]

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ORS 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)]

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ORS 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

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ORS 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 for 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)]

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ORS 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

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ORS 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]

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ORS 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

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ORS 461.213 [1989 c.828 §4(1),(2); 1991 c.345 §1; 1991 c.613 §3; repealed by 2005 c.810 §3]

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ORS 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

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ORS 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

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ORS 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

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ORS 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

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ORS 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

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ORS 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; disclosure of name and address of prize winner; 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

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ORS 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]

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ORS 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

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ORS 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]

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ORS 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)]

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ORS 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

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ORS 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)]

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ORS 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

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ORS 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

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ORS 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]

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ORS 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

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ORS 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)]

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ORS 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

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ORS 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)]

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ORS 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]

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ORS 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

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ORS 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

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ORS 461.512 Management of lottery moneys received by county; report on use of moneys. (1) For purposes of this section

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ORS 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

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ORS 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)]

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ORS 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]

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ORS 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

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ORS 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

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ORS 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]

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