Oregon Administrative Rules
Chapter 177 - OREGON STATE LOTTERY
Division 50 - SCRATCH-ITSM TICKET GAME OPERATING RULES
Section 177-050-0037 - Stolen, Destroyed, and Damaged Scratch-It Tickets
Universal Citation: OR Admin Rules 177-050-0037
Current through Register Vol. 63, No. 9, September 1, 2024
(1) Defective, Damaged, or Destroyed Tickets: A Lottery retailer will not be billed for non-activated Scratch-itSM tickets that are defective, damaged, or destroyed, or the Lottery may credit a retailer's EFT account for activated Scratch-itSM tickets that are defective, damaged, or destroyed, under the following conditions:
(a) Manufacturing Defect: The defect is a
result of a manufacturing error or damage during shipment; or
(b) Reasonable Control: The damage or
destruction is due to circumstances beyond the retailer's reasonable control,
such as a structure fire, flood, or other natural disaster; and
(c) Time Limitation: Damaged or defective
Scratch-itSM tickets are returned to the Lottery within 30 days of discovering
the damage or defect. When the Scratch-itSM tickets cannot be returned because
they are completely destroyed or damaged beyond recognition, within 30 days of
when the tickets were destroyed or damaged the retailer must submit, on a form
provided by the Lottery, a signed and notarized affidavit which describes the
circumstances of how the Scratch-itSM tickets were destroyed or damaged. The
Lottery's Finance and Accounting department will review inventory and sales
records and confirm the value of the destroyed or damaged Scratch-itSM
tickets.
(d) Director's Approval:
Credit for defective, damaged, or destroyed Scratch-itSM tickets may be given
only upon approval of the Director.
(2) Theft of Activated Tickets: The Lottery may credit a retailer's EFT account for one-half of the uninsured loss of activated Scratch-itSM tickets that are stolen from the retailer's premises subject to the following:
(a) Loss Amount: The
theft results in a loss of $150 or more of activated Scratch-itSM
tickets.
(b) Security Measures: The
retailer has in place and was using at the time of the theft, reasonable
security measures to prevent the theft of Scratch-itSM tickets. The Director
will, in the Director's sole discretion, determine if a retailer was using
reasonable security measures at the time of the theft. For purposes of this
rule, "reasonable security measures" means that at a minimum, the retailer:
(A) Approved Dispensers: Keeps Lottery
Scratch-itSM tickets in Lottery approved dispensers, ITVMs, or stored in a
locked container inaccessible to customers and unauthorized employees if the
tickets are not yet being offered for sale;
(B) Inventory Control Process: Has an
inventory control process in place, including adequate record keeping,
Scratch-itSM ticket access controls, and ticket activation controls;
and
(C) Accounting Procedures: Uses
accounting or bookkeeping procedures that alert the retailer to the theft of
activated Scratch-itSM tickets within seven business days of the
theft.
(c) Reporting
Requirements: The retailer must:
(A) Report
the theft to a local law enforcement agency and to the Lottery within 48 hours
of discovering the theft. The report must include the game, pack, and
Scratch-itSM ticket numbers of the stolen tickets; and
(B) Submit to the Lottery a copy of a police
report showing the theft was reported to the local law enforcement
agency.
(d) Retailer
Affidavit: The retailer must submit to the Lottery, on an affidavit form
provided by the Lottery, a signed and notarized statement:
(A) Describing the circumstances of the
theft, the game, pack, and Scratch-ItSM ticket numbers of the stolen tickets,
the total loss claimed, and a statement whether the retailer is self-insured or
is covered by third-party insurance; and
(B) The retailer must attach to the statement
a copy of any documents substantiating the theft or loss, including, but not
limited to, any inventory control records related to the stolen tickets and any
financial records showing the monetary loss.
(e) Third Party Insurance: If the loss is
fully covered by third-party insurance, the retailer is not eligible to receive
a credit for the stolen tickets. If the loss is not entirely covered by
third-party insurance, then the retailer may receive a credit for one-half of
the balance of the loss if the retailer provides a letter from the insurance
company setting forth the amount of loss claimed by the retailer and the amount
paid to the retailer by the insurance company. The retailer must provide any
other information needed by the Lottery to determine the amount of insurance
coverage and the amount paid to the retailer for the loss.
(f) Cooperation: The retailer must fully
cooperate with the Lottery and provide any documents or information requested.
The retailer must cooperate fully in the prosecution of any criminal case
resulting from the theft of the tickets or in any civil lawsuit for recovery of
the amount of the loss paid to the retailer by the Lottery under this
rule.
(g) Restitution from Criminal
Prosecution of Judgment in Civil Action: The Director will not credit the
retailer's EFT account for any amount of the loss that a court orders repaid as
restitution or that is awarded to the retailer in a civil judgment or
settlement. The Director may delay crediting the retailer for the loss claimed
until criminal proceedings related to the theft of the tickets are concluded.
The Lottery may recover from the retailer any amount ordered as restitution in
a criminal case or received by the retailer pursuant to a civil judgment or
settlement agreement.
(h) Employee
Theft: In no event will the Director authorize credit to a retailer when the
retailer is the victim of employee theft.
(i) Time Limitation: Notwithstanding the
48-hour reporting requirement of subsection (c) of this section, the Director
may authorize a credit upon a showing that the failure to timely report was
beyond the retailer's reasonable control. In no event will a retailer receive a
credit for a theft that occurred more than 30 days prior to the date that the
retailer reported the theft to the Lottery and the local law enforcement agency
as set forth in subsection (b) of this section.
(j) Limit on Credit Amount: In no event may a
retailer receive credit for a loss resulting from theft in an amount greater
than $2500 during the term of the retailer contract.
(3) Theft of Non-Activated Tickets: The Lottery will not bill a retailer for Scratch-itSM tickets received but not activated that are stolen from the retailer's premise if the theft results in the loss of $150 or more of non-active Scratch-itSM tickets and the retailer complies with the requirements of subsections (2)(b) through (2)(h) of this rule. The limitations set forth in subsections (2)(g) through (2)(j) of this rule apply to the theft of non-activated Scratch-itSM tickets.
Statutory/Other Authority: Or Const, Art XV, § 4(4)(a), ORS 461.120, 461.150, 461.190, 461.210, 461.260 & 461.300
Statutes/Other Implemented: Or Const, Art XV, § 4(4), ORS 461.120, 461.150, 461.190, 461.210, 461.260 & 461.300
Disclaimer: These regulations may not be the most recent version. Oregon may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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