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 orservices; restrictions; considerations
    Sec. 1. (a) The commission may enter into contracts for thepurchase, lease, or lease-purchase of goods or services necessary tocarry out this article. The commission may not contract with anyperson or entity for the total operation and administration of thelottery established by this article, but may enter into contracts andmake 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 intoaccount the particularly sensitive nature of the lottery and shallconsider the competence, quality of product, experience, and timelyperformance of the vendors in order to promote and ensure security,honesty, fairness, and integrity in the operation and administration ofthe lottery and the objective of raising net revenues for the benefit ofthe 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 financialresponsibility, 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 thenames and addresses of the following:
            (A) If the vendor is a corporation, the officers, directors, andeach stockholder in the corporation, except that in the caseof owners of equity securities of a publicly tradedcorporation only the names and addresses of those known tothe 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 personsentitled 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 thegeneral partners, limited partners, or joint venturers.
        (2) A disclosure of all the states and jurisdictions in which thevendor does business and the nature of that business for eachstate or jurisdiction.
        (3) A disclosure of all the states and jurisdictions in which thevendor has contracts to supply gaming goods or services,

including lottery goods and services, and of the nature of thegoods and services involved for each state or jurisdiction.
        (4) A disclosure of all the states and jurisdictions in which thevendor has applied for, has sought renewal of, has received, hasbeen denied, has pending, or has had revoked or terminated agaming license or contract of any kind and of the disposition ineach state or jurisdiction. If a gaming license or contract hasbeen revoked or terminated or has not been renewed or agaming license application or contract bid has been eitherdenied or is pending and has remained pending for more thansix (6) months, all of the facts and circumstances underlyingthis failure to receive a license or contract must be disclosed.
        (5) A tax clearance statement from the department of staterevenue certifying that the vendor is not on the most recent taxwarrant list.
        (6) A disclosure of the details of a conviction or judgment of astate or federal court of the vendor of a felony or any othercriminal 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 thischapter for the subcontractor as if the subcontractor were avendor.
        (9) Additional disclosures and information the commissiondetermines 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 thatdoes not comply with the disclosure requirements described insection 2 of this chapter may not be entered into and is notenforceable. A contract with a vendor who does not comply with therequirements for periodically updating the disclosures during thetenure of the contract as specified in the contract may be terminatedby the commission. This section shall be construed broadly andliberally to achieve full disclosure of all information necessary toallow for a full and complete evaluation by the commission of thecompetence, integrity, background, and character of vendors formajor procurement.
As added by P.L.341-1989(ss), SEC.1.

IC 4-30-8-4
Vendor convicted of felony within preceding ten years; contractrestrictions
    Sec. 4. A contract for a major procurement with a vendor may notbe entered into if the vendor has been convicted of, or entered a pleaof guilty or nolo contendere to, a felony committed in the preceding

ten (10) years, regardless of adjudication, unless the commissiondetermines that:
        (1) the vendor has been pardoned or the vendor's civil rightshave been restored;
        (2) subsequent to the conviction or entry of the plea the vendorhas engaged in the kind of law abiding commerce and goodcitizenship that would reflect well upon the integrity of thelottery; or
        (3) if the vendor is a firm, an association, a partnership, a trust,a corporation, a limited liability company, or other entity, thevendor has terminated its relationship with the individual whoseactions directly contributed to the vendor's conviction or entryof 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 ofexecuting the contract with the commission, post an appropriate bondor a letter of credit with the commission in an amount equal to thefull amount estimated to be paid annually to the vendor undercontract. However, the commission may, by a majority vote of all themembers of the commission, adopt a resolution expressly permittingthe director to decrease the bond or letter of credit requirement fora procurement, if the director determines that the decrease will resultin a cost savings to the commission while still providing adequateprotection against nonperformance. In lieu of a bond or letter ofcredit, a vendor may, to assure the faithful performance of itsobligations, deposit and maintain with the commission securities thatare interest bearing or accruing and that, with the exception of thosespecified in subdivision (1) or (2), are rated in one (1) of the four (4)highest classifications by an established nationally recognizedinvestment rating service. Securities eligible under this section arelimited to the following:
        (1) Certificates of deposit issued by solvent banks or savingsassociations organized and existing under Indiana law or underthe laws of the United States and having their principal place ofbusiness in Indiana.
        (2) United States bonds and bills for which the full faith andcredit of the government of the United States is pledged for thepayment of principal and interest.
        (3) General obligation bonds and notes of any politicalsubdivision of the state.
        (4) Corporate bonds of a corporation that is not an affiliate orsubsidiary of the depositor.
Securities shall be held in trust and must have at all times a marketvalue at least equal to the full amount estimated to be paid annuallyto 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 majorprocurement under this chapter must contain a provision for paymentof liquidated damages to the commission for a breach of the majorprocurement 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 thischapter may not include a provision allowing for warrantlesssearches.
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; governinglaw
    Sec. 8. Each vendor must be qualified to do business in Indianaand shall file appropriate tax returns as provided by Indiana law. Allcontracts 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 evaluatingcompeting proposals and selecting the proposal that provides thegreatest long term benefit to Indiana with respect to the quality of theproduct 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 netproceeds over the life of the contract.
As added by P.L.341-1989(ss), SEC.1. Amended by P.L.49-1997,SEC.24.