Oregon Administrative Rules
Chapter 177 - OREGON STATE LOTTERY
Division 40 - RETAILER CONTRACT
Section 177-040-0024 - Compensation Rate Study for Video Lottery Retailers
Current through Register Vol. 63, No. 9, September 1, 2024
(1) Purpose: The Director of the Oregon State Lottery may conduct a comprehensive Video Lottery retailer compensation study. The compensation study will assist the Lottery Commission in meeting its legal obligation to develop a compensation system that maximizes net revenue to the state for the public purpose and provides a reasonable rate of return for Video Lottery retailers for their sales of Lottery tickets or shares. If a Video Lottery retailer compensation study is conducted, it is to be completed prior to the start of the term of any new Lottery Retailer Contract.
(2) Selection of Independent Consulting Company or Consultant: The Video Lottery retailer compensation study shall be completed by an independent economic consulting company or economic consultant chosen by the Director. The Director may select a consulting company or consultant using any procurement process deemed appropriate by the Director, but in selecting the consulting company or consultant, the Director shall determine that the company or consultant has the requisite experience, expertise, and knowledge for this type of study. The Director shall submit a report to the Lottery Commission before entering into any contract for services with the consulting company or consultant selected by the Director.
(3) Analysis of Video Lottery Retailer Compensation Systems: The study shall provide an analysis and comparison of various Video Lottery retailer compensation systems, and shall set forth the pros and cons for each system and the estimated costs to Lottery if it were to use each system. The analysis shall include, but is not limited to, the following Video Lottery retailer compensation systems:
(4) Lottery Commission Responsibilities To Be Addressed: In analyzing the various compensation rate systems, as required in section (3) of this rule, the study must consider and address the following constitutional and statutory responsibilities of the Lottery Commission and the Lottery Director to:
(5) Other Factors: Notwithstanding section (4) of this rule, the Director shall determine what other factors are necessary for consideration and review in order to complete a comprehensive Video Lottery retailer compensation rate study.
(6) Completion: The studies required under this rule are to be completed no later than nine months prior to the start of the term of a new Video Lottery retailer contract.
Statutory/Other Authority: ORS 461.120, 461.260, 461.300 & OR Const. Art. XV § 4(4)(a)
Statutes/Other Implemented: OR Const. Art. XV § 4 & ORS 461.120, 461.260, 461.300, 461.310, 461.445