CHAPTER 8. VENDORS; DISCLOSURE AND CONTRACT REQUIREMENTS
IC 4-30-8
Chapter 8. Vendors; Disclosure and Contract Requirements
IC 4-30-8-1
Contracts for purchase, lease, or lease-purchase of goods or
services; restrictions; considerations
Sec. 1. (a) The commission may enter into contracts for the
purchase, lease, or lease-purchase of goods or services necessary to
carry out this article. The commission may not contract with any
person or entity for the total operation and administration of the
lottery established by this article, but may enter into contracts and
make purchases that integrate functions such as lottery game design,
supply of goods and services, and advertisement.
(b) In all procurement decisions, the director, or the commission,
if the commission chooses to make the decision, shall take into
account the particularly sensitive nature of the lottery and shall
consider the competence, quality of product, experience, and timely
performance of the vendors in order to promote and ensure security,
honesty, fairness, and integrity in the operation and administration of
the lottery and the objective of raising net revenues for the benefit of
the public purposes described in this article.
As added by P.L.341-1989(ss), SEC.1.
IC 4-30-8-2
Investigation of persons who submit bids, proposals, or offers;
disclosure of information
Sec. 2. The division of security shall investigate the financial
responsibility, security, and integrity of a person who submits a bid,
proposal, or offer as part of a major procurement. At a minimum,
each person must disclose at the time of submitting a bid, proposal,
or offer to the commission all of the following items:
(1) A disclosure of the vendor's name and address and the
names and addresses of the following:
(A) If the vendor is a corporation, the officers, directors, and
each stockholder in the corporation, except 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 at least five percent (5%)
in equity securities need be disclosed.
(B) If the vendor is a trust, the trustees and all persons
entitled to receive income or benefits from the trust.
(C) If the vendor is an association, the members, officers,
and directors.
(D) If the vendor is a partnership or joint venture, all of the
general partners, limited partners, or joint venturers.
(2) A disclosure of all the states and jurisdictions in which the
vendor does business and the nature of that business for each
state or jurisdiction.
(3) A disclosure of all the states and jurisdictions in which the
vendor has contracts to supply gaming goods or services,
including lottery goods and services, and of the nature of the
goods and services involved for each state or jurisdiction.
(4) 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 or terminated a
gaming license or contract of any kind and of the disposition in
each state or jurisdiction. If a gaming license or contract has
been revoked or terminated or has not been renewed or a
gaming license application or contract bid has been either
denied or is pending and has remained pending for more than
six (6) months, all of the facts and circumstances underlying
this failure to receive a license or contract must be disclosed.
(5) A tax clearance statement from the department of state
revenue certifying that the vendor is not on the most recent tax
warrant list.
(6) A disclosure of the details of a conviction or judgment of a
state or federal court of the vendor of a felony or any other
criminal offense other than a traffic violation.
(7) A disclosure of the details of a bankruptcy, an insolvency,
a reorganization, or any pending litigation of the vendor.
(8) If a vendor subcontracts part of the work to be performed,
the vendor shall disclose all the information required by this
chapter for the subcontractor as if the subcontractor were a
vendor.
(9) Additional disclosures and information the commission
determines appropriate for the procurement involved.
As added by P.L.341-1989(ss), SEC.1.
IC 4-30-8-3
Contracts that do not comply with disclosure requirements;
enforceability; construction
Sec. 3. A contract for a major procurement with a vendor that
does not comply with the disclosure requirements described in
section 2 of this chapter may not be entered into and is not
enforceable. A contract with a vendor who does not comply with the
requirements for periodically updating the disclosures during the
tenure of the contract as specified in the contract may be terminated
by the commission. This section shall be construed broadly and
liberally to achieve full disclosure of all information necessary to
allow for a full and complete evaluation by the commission of the
competence, integrity, background, and character of vendors for
major procurement.
As added by P.L.341-1989(ss), SEC.1.
IC 4-30-8-4
Vendor convicted of felony within preceding ten years; contract
restrictions
Sec. 4. A contract for a major procurement with a vendor may not
be entered into if the vendor has been convicted of, or entered a plea
of guilty or nolo contendere to, a felony committed in the preceding
ten (10) years, regardless of adjudication, unless the commission
determines that:
(1) the vendor has been pardoned or the vendor's civil rights
have been restored;
(2) subsequent to the conviction or entry of the plea the vendor
has engaged in the kind of law abiding commerce and good
citizenship that would reflect well upon the integrity of the
lottery; or
(3) if the vendor is a firm, an association, a partnership, a trust,
a corporation, a limited liability company, or other entity, the
vendor has terminated its relationship with the individual whose
actions directly contributed to the vendor's conviction or entry
of the plea.
As added by P.L.341-1989(ss), SEC.1. Amended by P.L.8-1993,
SEC.35.
IC 4-30-8-5
Bond or letter of credit
Sec. 5. Each vendor in a major procurement must, at the time of
executing the contract with the commission, post an appropriate bond
or a letter of credit with the commission in an amount equal to the
full amount estimated to be paid annually to the vendor under
contract. However, the commission may, by a majority vote of all the
members of the commission, adopt a resolution expressly permitting
the director to decrease the bond or letter of credit requirement for
a procurement, if the director determines that the decrease will result
in a cost savings to the commission while still providing adequate
protection against nonperformance. In lieu of a bond or letter of
credit, a vendor may, to assure the faithful performance of its
obligations, deposit and maintain with the commission securities that
are interest bearing or accruing and that, with the exception of those
specified in subdivision (1) or (2), are rated in one (1) of the four (4)
highest classifications by an established nationally recognized
investment rating service. Securities eligible under this section are
limited to the following:
(1) Certificates of deposit issued by solvent banks or savings
associations organized and existing under Indiana law or under
the laws of the United States and having their principal place of
business in Indiana.
(2) United States bonds and bills for which the full faith and
credit of the government of the United States is pledged for the
payment of principal and interest.
(3) General obligation bonds and notes of any political
subdivision of the state.
(4) Corporate bonds of a corporation that is not an affiliate or
subsidiary of the depositor.
Securities shall be held in trust and must have at all times a market
value at least equal to the full amount estimated to be paid annually
to the vendor under contract.
As added by P.L.341-1989(ss), SEC.1.
IC 4-30-8-6
Liquidated damages
Sec. 6. Each contract entered into by the commission for a major
procurement under this chapter must contain a provision for payment
of liquidated damages to the commission for a breach of the major
procurement contract by the vendor.
As added by P.L.341-1989(ss), SEC.1. Amended by P.L.32-1990,
SEC.3.
IC 4-30-8-7
Warrantless searches; prohibition
Sec. 7. A contract entered into by the commission under this
chapter may not include a provision allowing for warrantless
searches.
As added by P.L.341-1989(ss), SEC.1.
IC 4-30-8-8
Qualified to do business in state; filing of tax returns; governing
law
Sec. 8. Each vendor must be qualified to do business in Indiana
and shall file appropriate tax returns as provided by Indiana law. All
contracts are governed by Indiana law.
As added by P.L.341-1989(ss), SEC.1.
IC 4-30-8-9
Adoption of rules for procurement
Sec. 9. IC 5-22 does not apply to procurement by the commission.
The commission shall adopt rules under IC 4-22-2 for procurement.
The rules shall be designed to aid the commission in evaluating
competing proposals and selecting the proposal that provides the
greatest long term benefit to Indiana with respect to the quality of the
product or services, dependability and integrity of the vendor,
dependability of the vendor's products or service, security,
competence, timeliness, and maximization of gross revenues and net
proceeds over the life of the contract.
As added by P.L.341-1989(ss), SEC.1. Amended by P.L.49-1997,
SEC.24.