§ 18C‑152. Investigation of lottery potential contractors.
(a) Lottery potentialcontractors shall cooperate with the Director in completing any investigationrequired under G.S. 18C‑151(c), including any appropriate investigationauthorizations needed to facilitate these investigations.
(b) The Commissionshall adopt rules that provide for disclosures of information required to bedisclosed under subsection (c) of this section by lottery potential contractorsto ensure that the potential contractors provide all the information necessaryto allow for a full and complete evaluation by the Director and Commission ofthe competence, integrity, background, and character of the lottery potentialcontractors. Information shall be disclosed for the following:
(1) If the potentialcontractor is a corporation, the officers, directors, and each stockholder inthat corporation; however, in the case of owners of equity securities of apublicly traded corporation, only the names and addresses of those known to thecorporation to own beneficially five percent (5%) or more of the securitiesneed be disclosed.
(2) If the potentialcontractor is a trust, the trustee and all persons entitled to receive incomeor benefits from the trust.
(3) If the potentialcontractor is an association, the members, officers, and directors.
(4) If the potentialcontractor is a partnership or joint venture, all of the general partners,limited partners, or joint venturers.
(5) For any potentialcontractor, any person who can exercise control or authority, or both, onbehalf of the potential contractor. For any potential contractor, any personwho can exercise control or authority, or both, on behalf of the potentialcontractor.
(c) For purposes ofthis subsection, the term "potential contractor" shall include thepotential contractor and each of the persons applicable under subsection (b) ofthis section. At a minimum, the potential contractor required to discloseinformation for a thorough background investigation under G.S. 18C‑151shall do all of the following:
(1) Disclose thepotential contractor's name, phone number, and address.
(2) Disclose all thestates and jurisdictions in which the potential contractor does business andthe nature of the business for each state or jurisdiction.
(3) Disclose all thestates and jurisdictions in which the potential contractor has contracts tosupply gaming goods or services, including lottery goods and services, and thenature of the goods or services involved for each state or jurisdiction.
(4) Disclose all thestates and jurisdictions in which the potential contractor has applied for, hassought renewal of, has received, has been denied, has pending, or has hadrevoked a lottery or gaming license or permit of any kind or had fines orpenalties assessed on a license, permit, contract, or operation and thedisposition of such in each such state or jurisdiction. If any lottery orgaming license, permit, or contract has been revoked or has not been renewed orany lottery or gaming license, permit, or application has been either denied oris pending and has remained pending for more than six months, all of the factsand circumstances underlying the failure to receive that license shall bedisclosed.
(5) Disclose the detailsof any finding or plea, conviction, or adjudication of guilt in a state orfederal court of the potential contractor for any felony or any other criminaloffense other than a minor traffic violation.
(6) Disclose the detailsof any bankruptcy, insolvency, reorganization, or corporate or individualpurchase or takeover of another corporation, including bonded indebtedness, orany pending litigation of the potential contractor.
(7) If at least twenty‑fivepercent (25%) of the cost of a potential contractor's contract issubcontracted, the potential contractor shall disclose all of the informationrequired by this section for the subcontractor as if the subcontractor wereitself a potential contractor.
(8) Make any additionaldisclosures and information the Commission determines to be appropriate for thecontract involved.
(d) All documentscompiled by the Director in conducting the investigation of the lotterypotential contractors shall be held as confidential information under Chapter132 of the General Statutes. (2005‑344, s. 1; 2005‑276, s. 31.1(q);2009‑357, s. 4.)
§ 18C‑152. Investigation of lottery potential contractors.
(a) Lottery potentialcontractors shall cooperate with the Director in completing any investigationrequired under G.S. 18C‑151(c), including any appropriate investigationauthorizations needed to facilitate these investigations.
(b) The Commissionshall adopt rules that provide for disclosures of information required to bedisclosed under subsection (c) of this section by lottery potential contractorsto ensure that the potential contractors provide all the information necessaryto allow for a full and complete evaluation by the Director and Commission ofthe competence, integrity, background, and character of the lottery potentialcontractors. Information shall be disclosed for the following:
(1) If the potentialcontractor is a corporation, the officers, directors, and each stockholder inthat corporation; however, in the case of owners of equity securities of apublicly traded corporation, only the names and addresses of those known to thecorporation to own beneficially five percent (5%) or more of the securitiesneed be disclosed.
(2) If the potentialcontractor is a trust, the trustee and all persons entitled to receive incomeor benefits from the trust.
(3) If the potentialcontractor is an association, the members, officers, and directors.
(4) If the potentialcontractor is a partnership or joint venture, all of the general partners,limited partners, or joint venturers.
(5) For any potentialcontractor, any person who can exercise control or authority, or both, onbehalf of the potential contractor. For any potential contractor, any personwho can exercise control or authority, or both, on behalf of the potentialcontractor.
(c) For purposes ofthis subsection, the term "potential contractor" shall include thepotential contractor and each of the persons applicable under subsection (b) ofthis section. At a minimum, the potential contractor required to discloseinformation for a thorough background investigation under G.S. 18C‑151shall do all of the following:
(1) Disclose thepotential contractor's name, phone number, and address.
(2) Disclose all thestates and jurisdictions in which the potential contractor does business andthe nature of the business for each state or jurisdiction.
(3) Disclose all thestates and jurisdictions in which the potential contractor has contracts tosupply gaming goods or services, including lottery goods and services, and thenature of the goods or services involved for each state or jurisdiction.
(4) Disclose all thestates and jurisdictions in which the potential contractor has applied for, hassought renewal of, has received, has been denied, has pending, or has hadrevoked a lottery or gaming license or permit of any kind or had fines orpenalties assessed on a license, permit, contract, or operation and thedisposition of such in each such state or jurisdiction. If any lottery orgaming license, permit, or contract has been revoked or has not been renewed orany lottery or gaming license, permit, or application has been either denied oris pending and has remained pending for more than six months, all of the factsand circumstances underlying the failure to receive that license shall bedisclosed.
(5) Disclose the detailsof any finding or plea, conviction, or adjudication of guilt in a state orfederal court of the potential contractor for any felony or any other criminaloffense other than a minor traffic violation.
(6) Disclose the detailsof any bankruptcy, insolvency, reorganization, or corporate or individualpurchase or takeover of another corporation, including bonded indebtedness, orany pending litigation of the potential contractor.
(7) If at least twenty‑fivepercent (25%) of the cost of a potential contractor's contract issubcontracted, the potential contractor shall disclose all of the informationrequired by this section for the subcontractor as if the subcontractor wereitself a potential contractor.
(8) Make any additionaldisclosures and information the Commission determines to be appropriate for thecontract involved.
(d) All documentscompiled by the Director in conducting the investigation of the lotterypotential contractors shall be held as confidential information under Chapter132 of the General Statutes. (2005‑344, s. 1; 2005‑276, s. 31.1(q);2009‑357, s. 4.)
§ 18C‑152. Investigation of lottery potential contractors.
(a) Lottery potentialcontractors shall cooperate with the Director in completing any investigationrequired under G.S. 18C‑151(c), including any appropriate investigationauthorizations needed to facilitate these investigations.
(b) The Commissionshall adopt rules that provide for disclosures of information required to bedisclosed under subsection (c) of this section by lottery potential contractorsto ensure that the potential contractors provide all the information necessaryto allow for a full and complete evaluation by the Director and Commission ofthe competence, integrity, background, and character of the lottery potentialcontractors. Information shall be disclosed for the following:
(1) If the potentialcontractor is a corporation, the officers, directors, and each stockholder inthat corporation; however, in the case of owners of equity securities of apublicly traded corporation, only the names and addresses of those known to thecorporation to own beneficially five percent (5%) or more of the securitiesneed be disclosed.
(2) If the potentialcontractor is a trust, the trustee and all persons entitled to receive incomeor benefits from the trust.
(3) If the potentialcontractor is an association, the members, officers, and directors.
(4) If the potentialcontractor is a partnership or joint venture, all of the general partners,limited partners, or joint venturers.
(5) For any potentialcontractor, any person who can exercise control or authority, or both, onbehalf of the potential contractor. For any potential contractor, any personwho can exercise control or authority, or both, on behalf of the potentialcontractor.
(c) For purposes ofthis subsection, the term "potential contractor" shall include thepotential contractor and each of the persons applicable under subsection (b) ofthis section. At a minimum, the potential contractor required to discloseinformation for a thorough background investigation under G.S. 18C‑151shall do all of the following:
(1) Disclose thepotential contractor's name, phone number, and address.
(2) Disclose all thestates and jurisdictions in which the potential contractor does business andthe nature of the business for each state or jurisdiction.
(3) Disclose all thestates and jurisdictions in which the potential contractor has contracts tosupply gaming goods or services, including lottery goods and services, and thenature of the goods or services involved for each state or jurisdiction.
(4) Disclose all thestates and jurisdictions in which the potential contractor has applied for, hassought renewal of, has received, has been denied, has pending, or has hadrevoked a lottery or gaming license or permit of any kind or had fines orpenalties assessed on a license, permit, contract, or operation and thedisposition of such in each such state or jurisdiction. If any lottery orgaming license, permit, or contract has been revoked or has not been renewed orany lottery or gaming license, permit, or application has been either denied oris pending and has remained pending for more than six months, all of the factsand circumstances underlying the failure to receive that license shall bedisclosed.
(5) Disclose the detailsof any finding or plea, conviction, or adjudication of guilt in a state orfederal court of the potential contractor for any felony or any other criminaloffense other than a minor traffic violation.
(6) Disclose the detailsof any bankruptcy, insolvency, reorganization, or corporate or individualpurchase or takeover of another corporation, including bonded indebtedness, orany pending litigation of the potential contractor.
(7) If at least twenty‑fivepercent (25%) of the cost of a potential contractor's contract issubcontracted, the potential contractor shall disclose all of the informationrequired by this section for the subcontractor as if the subcontractor wereitself a potential contractor.
(8) Make any additionaldisclosures and information the Commission determines to be appropriate for thecontract involved.
(d) All documentscompiled by the Director in conducting the investigation of the lotterypotential contractors shall be held as confidential information under Chapter132 of the General Statutes. (2005‑344, s. 1; 2005‑276, s. 31.1(q);2009‑357, s. 4.)
