Current through Register Vol. 63, No. 9, September 1, 2024
(1)
General Approval: A manufacturer shall apply to the Director of the Oregon
Lottery for approval to manufacture or service gray machines within Oregon.
(a)
Director's Approval: The
Director may authorize a manufacturer to manufacture or service gray machines
within the state of Oregon only if the manufacturer intends to export the gray
machines to another state or jurisdiction where the operation or possession of
the machines is legal. The Director shall require a manufacturer to cite the
law that authorizes the legal operation or possession of the machines in the
state or jurisdiction, and may require additional evidence that the gray
machines will be sold or otherwise provided to a person who is authorized to
operate or possess the machines in that jurisdiction. The authorization
includes approval to engage in ongoing research and development related to the
improvement and development of Video LotterySM game terminals the manufacturer
intends to manufacture.
(b)
Disclosure Requirements: The manufacturer is subject to the same
disclosure and background investigation requirements as an applicant for a
major procurement. The manufacturer may be required by the Director to
reimburse the Lottery for the costs of background investigations.
(c)
Inspections and Audits: A
manufacturer's premises, and all production, shipping, service, and financial
records, shall be made available for routine and unannounced inspections and
audits by the Assistant Director of Security. A manufacturer shall provide to
the Lottery, upon request of the Assistant Director for Security, a report
listing: the types and numbers of gray machines manufactured; the types and
number of machines in storage; the types and number of machines serviced; the
name and address of each individual or entity who purchased, leased, or
otherwise was provided gray machines or who agreed or expressed an intent to
purchase, lease, or otherwise acquire gray machines, or who own, operate, or
otherwise possess gray machines serviced by the manufacturer; the number of
shipments; destinations of all shipments; and methods of shipment, including
carrier used. The information in the report shall be for a time period
designated by the Assistant Director for Security. Shipment or transport of
gray machines to a destination outside of Oregon also must comply with OAR
177-100-0160.
(2)
Temporary Approval: The Director may temporarily authorize a
manufacturer to manufacture or service gray machines within the state of Oregon
that the manufacturer intends to export to another state or jurisdiction where
the operation or possession of the machines is legal. The temporary
authorization is subject to such terms, conditions, or limitations as the
Director deems necessary.
(a) The manufacturer
must submit the following:
(A) The information
required by ORS 461.410(1);
(B) A written description of the proposed use
of the gray machines;
(C) A cite
for the law that authorizes the legal operation or possession of the gray
machines in the state or jurisdiction where the machines will be used;
and
(D) The identity of the
individuals or entities who have agreed to or have expressed an intent to
purchase or otherwise acquire gray machines from the manufacturer, or who own,
operate, or otherwise possess gray machines serviced by the
manufacturer.
(b) When
the Lottery receives the above materials for temporary approval, the Lottery
will conduct an abbreviated background investigation of the manufacturer. The
investigation includes, but is not limited to:
(A) A computerized criminal background check
of all control persons and any employee deemed necessary by the Assistant
Director for Security.
(B) A credit
check using the services of a commercial credit reporting company,
and
(C) An inspection of the
manufacturer's business premises where the gray machines will be manufactured
or serviced.
(c) If the
Director issues a temporary approval, it is effective for no longer than 180
days.
(3)
Cancellation of Approval: The Director may cancel any general or
temporary approval if the Director determines that the manufacturer has failed
to adhere to the qualifications or conditions required for authorization of the
manufacturer or otherwise poses a threat to the integrity, security, or honesty
of the Lottery. Approval also may be cancelled if within a reasonable time from
the date of production, the manufacturer is unable to show the machines have
been purchased, leased, or otherwise acquired by a person or entity authorized
to obtain or possess the machines.
Stat. Auth.: OR Const. Art. XV, Sec. 4(4) & ORS
461
Stats. Implemented: ORS
167.117 &
167.164
