(a)The corporation shall investigate the financial
responsibility, security and integrity of any lottery system
vendor who is a finalist in submitting a bid, proposal or offer.
At the time of submitting the bid, proposal or offer to the
corporation, the corporation may require the following items:
(i)A disclosure of the vendor's name and address
and, as applicable, the names and addresses of the following:
(A)If the vendor is a corporation, the
officers, directors and each stockholder in the corporation,
provided, however, that in the case of owners of equity
securities of a publicly traded corporation, only the names and
addresses of those known to the corporation to own beneficially
five percent (5%) or more of the securities need be disclosed;
(B)If the vendor is a trust, the truste
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(a) The corporation shall investigate the financial
responsibility, security and integrity of any lottery system
vendor who is a finalist in submitting a bid, proposal or offer.
At the time of submitting the bid, proposal or offer to the
corporation, the corporation may require the following items:
(i) A disclosure of the vendor's name and address
and, as applicable, the names and addresses of the following:
(A) If the vendor is a corporation, the
officers, directors and each stockholder in the corporation,
provided, however, that in the case of owners of equity
securities of a publicly traded corporation, only the names and
addresses of those known to the corporation to own beneficially
five percent (5%) or more of the securities need be disclosed;
(B) If the vendor is a trust, the trustee and
all persons entitled to receive income or benefits from the
trust;
(C) If the vendor is an association, the
members, officers and directors; and
(D) If the vendor is a partnership or joint
venture, all of the general partners, limited partners or joint
venturers.
(ii) A disclosure of all the states and jurisdictions
in which the vendor does business and the nature of the business
for each state or jurisdiction;
(iii) A disclosure of all the states and
jurisdictions in which the vendor has contracts to supply gaming
goods or services, including, but not limited to, lottery goods
and services and the nature of the goods or services involved
for each state or jurisdiction;
(iv) A disclosure of all the states and jurisdictions
in which the vendor has applied for, has sought renewal of, has
received, has been denied, has pending or has had revoked a
lottery or gaming license of any kind or had fines or penalties
assessed to his license, contract or operation and the
disposition in each state or jurisdiction. If any lottery or
gaming license or contract has been revoked or has not been
renewed or any lottery or gaming license or application has been
either denied or is pending and has remained pending for more
than six (6) months, all of the facts and circumstances
underlying the failure to receive the license shall be
disclosed;
(v) A disclosure of the details of any finding or
plea, conviction or adjudication of guilt in a state or federal
court of the vendor for any felony or any other criminal offense
other than a traffic violation;
(vi) A disclosure of the details of any bankruptcy,
insolvency, reorganization or corporate or individual purchase
or takeover of another corporation, including bonded
indebtedness, or any pending litigation of the vendor; and
(vii) Additional disclosures and information as the
corporation may determine to be appropriate for the procurement
involved. If at least twenty-five percent (25%) of the cost of
a vendor's contract is subcontracted, the vendor shall disclose
all of the information required by this section for the
subcontractor as if the subcontractor were itself a vendor.
(b) A lottery major procurement contract shall not be
entered into with any lottery system vendor who has not complied
with the disclosure requirements described in subsection (a) of
this section and any contract with such a vendor is voidable at
the option of the corporation. Any contract with a vendor who
does not comply with the requirements for periodically updating
the disclosures during the tenure of contract as may be
specified in the contract may be terminated by the corporation.
The provisions of this section shall be construed broadly and
liberally to achieve the ends of full disclosure of all
information necessary to allow for a full and complete
evaluation by the corporation of the competence, integrity,
background and character of vendors for procurements.
(c) A major procurement contract shall not be entered into
with any vendor who has been found guilty of a felony related to
the security or integrity of the lottery in this or any other
jurisdiction.
(d) A major procurement contract shall not be entered into
with any vendor if the vendor has an ownership interest in an
entity that had supplied consultation services under contract to
the corporation regarding the request for proposals pertaining
to those particular goods or services.
(e) No lottery system vendor nor any applicant for a major
procurement contract may pay, give or make any economic
opportunity, gift, loan, gratuity, special discount, favor,
hospitality or service, excluding food and beverages having an
aggregate value not exceeding one hundred dollars ($100.00) in
any calendar year, to the chief executive officer, any board
member or any employee of the corporation or to a member of the
immediate family residing in the same household as the person.