Statute Text
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.
(2) The director
shall make and keep books and records which accurately and fairly reflect each
days transactions, including but not limited to, the distribution of tickets
or shares to lottery game retailers, receipt of funds, prize claims, prize
disbursements or prizes liable to be paid, expenses and all other financial
transactions involving state lottery funds necessary so as to permit
preparation of financial statements in conformity with generally accepted
accounting principles and to maintain daily accountability.
(3) The director
shall make a monthly financial report to the commission, and upon request
provide copies of such reports to the Governor, the Attorney General, the
Secretary of State, the State Treasurer and the Legislative Assembly. Such
report shall include a full and complete statement of state lottery revenues,
prize disbursements, expenses, net revenues and all other financial
transactions involving state lottery funds for the month.
(4) After the
first six months of sales of tickets or shares to the public, the director
shall engage an independent firm experienced in demographic analysis to conduct
a special study which shall ascertain the demographic characteristics of the
players of each lottery game, including but not limited to their income, age,
sex, education and frequency of participation. This report shall be presented
to the commission, the Governor, the Attorney General, the Secretary of State,
the State Treasurer and the Legislative Assembly. Similar studies shall be
conducted after the first such study from time to time as determined by the
director.
(5) After the
first full year of sales of tickets or shares to the public, the director shall
engage an independent firm experienced in the analysis of advertising,
promotion, public relations, incentives, public disclosures of odds and numbers
of winners in lottery games and other aspects of communications to conduct a
special study of the effectiveness of such communications activities by the
state lottery and make recommendations to the commission on the future conduct
and future rate of expenditure for such activities. This report shall be
presented to the commission, the Governor, the Attorney General, the Secretary
of State, the State Treasurer and the Legislative Assembly. Until the
presentation of such report and action by the commission, the state lottery
shall expend as close to three and one-half percent as practical of the
projected sales of all tickets and shares for advertising, promotion, public
relations, incentives, public disclosures of odds and numbers of winners in
lottery games and other aspects of communications. Similar studies shall be
conducted from time to time after the first such study as determined by the
director.
(6) After the
first nine months of sales of tickets or shares to the public, the commission
shall engage an independent firm experienced in security procedures, including
but not limited to computer security and systems security, to conduct a
comprehensive study and evaluation of all aspects of security in the operation
of the state lottery. Such study shall include, but not be limited to,
personnel security, lottery game retailer security, lottery contractor
security, security of manufacturing operations of lottery contractors, security
against ticket counterfeiting and alteration and other means of fraudulently
winning, security of drawings among entries or finalists, computer security,
data communications security, database security, security in distribution,
security involving validation and payment procedures, security involving
unclaimed prizes, security aspects applicable to each particular lottery game,
security of drawings in lottery games where winners are determined by drawings
of numbers, the completeness of security against locating winners in lottery
games with preprinted winners by persons involved in their production, storage,
distribution or sale and any other aspects of security applicable to any
particular lottery game and to the state lottery and its operations. The
portion of the report containing the overall evaluation o