OAR 177-100-0185: Instate Manufacturing of Video LotterySM Game Terminals Operated in Oregon

(1) A manufacturer of Video LotterySM game terminals approved by the Lottery for the Lottery’s own use under OAR chapter 177, division 35, may manufacture such terminals in Oregon. (2) The Director may issue temporary approval for the manufacture of Video LotterySM game terminals upon submission and satisfactory review of the following information: (a) The information required by ORS 461.410(1); (b) The manufacturer’s written statement of intent to manufacture Video LotterySM game terminals to be operated in Oregon solely by the Lottery; and (c) A copy of a letter or other document from the Lottery expressing an interest in purchasing Video LotterySM game terminals from the manufacturer. (3) If the Director issues a temporary approval, it shall be effective for no longer than 180 days. (4) No Video LotterySM game terminal shall leave the premises of the approved manufacturer until it is shipped to a destination authorized by the Lottery. (5) All Video LotterySM game terminals whose manufacture has been approved by the Lottery shall be operated only under the authority of the Lottery. (6) 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 a monthly report listing the types and numbers of Video LotterySM game terminals manufactured, the types and number in storage, the number of shipments of these Video LotterySM game terminals, the destinations of all shipments, and methods of shipment, including carrier used. (7) The Director may cancel any approval if the Director determines that the manufacturer has failed to adhere to the conditions required for approval of the manufacturer or otherwise poses a threat to the integrity, security, or honesty of the Lottery. Approval also may be revoked if the Lottery does not enter into a contract with the manufacturer for the purchase of the Video LotterySM game terminals within a reasonable period, or if such a contract is cancelled. (8) Notwithstanding sections (1) through (3) of this rule, any Oregon manufacturer who has previously submitted a bid in response to a request for proposal issued by the Lottery may continue to perform Video LotterySM game terminal research and development. If the manufacturer is not successful in providing Video LotterySM game terminals in any subsequent request for proposal issued by the Lottery, the Director may cancel the manufacturer’s approval to manufacture Video LotterySM game terminals.