Or. Admin. Code § 177-040-0000

Current through Register Vol. 63, No. 12, December 1, 2024

Section 177-040-0000 - Definitions

For purposes of OAR Chapter 177 Division 40, the following definitions apply except as otherwise specifically provided in OAR Chapter 177 or unless the context requires otherwise:

(1) "Age-controlled area" means an area where a natural person who is under 21 years of age is prohibited from entering or remaining as posted by either the Lottery or the Oregon Liquor and Cannabis Commission.

(2) "Applicant" means a person applying for a contract with the Lottery for the purpose of selling Lottery tickets or shares to the public, and any key person.

(3) "Application" means the forms, documents, or other information that the Lottery requires an applicant to submit to the Lottery in order to apply for or maintain a retailer contract.

(4) "Business" includes:

(a) A commercial activity engaged in for profit or gain; or

(b) The activity engaged in by a nonprofit organization; or

(c) The activity engaged in by a private club as described in ORS 471.175(8).

(5) "Complete application" means an application that is completely filled out, and when required, is signed by the applicant, and includes all the documentation and information requested by the Lottery.

(6) "Premises" means the building and grounds occupied by a business (including those areas not normally open to the public), where traditional Lottery game tickets and shares, Video LotterySM game shares, or both, are sold. Premises includes an area designated by the Lottery at any single location identified in an application as a proposed site for Oregon Video LotterySM terminals.

(7) "Key person" means:

(a) Corporations: For any corporation, including a subsidiary of a parent corporation:

(A) Stockholders: Any stockholder of a corporation who owns 10 percent or more of the outstanding stock in such corporation.

(B) Directors: Any director of a corporation who owns or controls 3 percent or more of the voting stock in such corporation.

(C) Officers: Officers of a corporation.

(b) Private Clubs: For a private club as described in ORS 471.175(8):

(A) The treasurer;

(B) Any officers, directors, or trustees who oversee or direct the operation of the food, beverage, Lottery, or other gambling-related activities of the private club; and

(C) Each manager in charge of the food, beverage, Lottery, or other gambling-related activities of the private club.

The provisions of paragraphs (7)(a)(A), (B), and (C) of this rule do not apply to private clubs.

(c) Trusts: The trustee and all persons entitled to receive income or benefit from the trust.

(d) Associations: The members, officers, and directors.

(e) Partnerships and Joint Ventures:

(A) All general partners;

(B) All limited partners whose partnership interest is 10 percent or more in the partnership; and

(C) All joint venturers whose investment commitment is 10 percent or more in the joint venture.

(f) Limited Liability Companies:

(A) Any manager of the limited liability company; and

(B) Any member of the limited liability company whose investment commitment or membership interest is 10 percent or more in the limited liability company.

(g) Layered Ownership: If the parent company, general partner, limited partner, joint venturer, stockholder, member or manager of a limited liability company is itself a corporation, trust, association, subsidiary, partnership, joint venture or limited liability company, then the Director may require that the applicant provide disclosure for such entity as if such entity were a key person itself.

(h) Family Members: Immediate family members as required in ORS 461.300(2)(b)(G) and (H).

(i) Sole Proprietors: The sole proprietor, if the retailer is a sole proprietor.

(j) Managers:

(A) General: A person, regardless of title, who acts or who has real or apparent authority to act on behalf of the owner in most matters concerning the operation of the owner's business during all business hours.

(B) Specific Duties: A person, regardless of title, who routinely performs all of the following duties:

(i) Hires and fires employees;

(ii) Makes purchasing decisions relating to the buying of supplies and inventory; and

(iii) Conducts banking functions for the business.

(C) Corporate or Absentee Owner: A person who operates the business for a corporate or absentee owner.

(D) Area Manager: A person who operates multiple locations or supervises multiple store managers.

(E) Exception: The definition of "manager" contained in this subsection (j) does not include a person who manages or operates a single convenience store as that term is defined in OAR 177-045-0000(2).

(k) Landlord: A landlord who receives 40 percent or more of the retailer's Lottery commissions as a part of lease payments or rent, or any landlord who the Director finds, based on reasonably reliable information, exerts influence over the operation of the retailer's business.

(l) Contractual Relationship: Any person who has a lease, contract, or other agreement with the applicant or retailer or anyone else, to provide food service or to manage or operate any part of the business in a Video LotterySM retailer's premises other than as an employee.

(m) Control Person: Any reference to a "control person" of a retailer in OAR Chapter 177, a Lottery retailer contract, or Lottery form in effect or in use on or after the effective date of this rule shall be deemed to refer to a "key person" as defined in this section.

(8) "Personal disclosure" means those documents and information that are part of the application which relate to a natural person's personal, criminal, and financial background, and associations with other people.

(9) "Mediation" has the meaning as defined in ORS 36.110(4).

(10) "Mediator" means a person who performs mediation.

(11) "Multi-State Retail Chain" means a retailer, including an applicant, who:

(a) Operates five or more retailer locations within the State of Oregon and one or more retail locations outside of the State of Oregon, all of which engage in similar business activities;

(b) Has common ownership and control over each location; and

(c) Sells no Oregon Lottery® games except traditional lottery games within the State of Oregon.

(12) "Public Company" means a retailer, including an applicant, who is a business entity that offers securities registered for sale by the federal Securities and Exchange Commission to the general public and sells no Oregon Lottery® games except traditional lottery games within the State of Oregon.

Or. Admin. Code § 177-040-0000

SLC 3-1985(Temp), f. & ef. 1-15-85; SLC 8-1985, f. & ef. 6-21-85; LC 11-1987, f. 6-22-87, ef. 7-1-87; LOTT 2-1998, f. & cert. ef. 5-28-98; LOTT 6-2000, f. 7-26-00, cert. ef. 8-1-00; LOTT 11-2002(Temp), f. 9-6-02, cert. ef. 9-9-02 thru 3-6-03; LOTT 22-2002, f. & cert.. ef. 11-25-02; LOTT 3-2004(Temp), f. & cert. ef. 4-6-04 thru 10-1-04; LOTT 6-2004, f. & cert. ef. 5-26-04; LOTT 3-2006, f. 2-16-06, cert. ef. 3-1-06; LOTT 8-2006, f. 12-20-06, cert. ef. 1-1-07; LOTT 13-2010, f. 12-20-10, cert. ef. 1-1-11; LOTT 7-2016, f. 9-30-16, cert. ef. 10-4-16; LOTT 4-2017, f. 8-25-17, cert. ef. 9/1/2017; LOTT 8-2021, minor correction filed 08/02/2021, effective 8/2/2021

Statutory/Other Authority: OR Const. Art. XV & Sec. 4(4)

Statutes/Other Implemented: ORS 461