(a) The Office of the Arkansas Lottery shall investigate the financial responsibility, security, and integrity of a vendor who is a finalist in submitting a bid, proposal, or offer to perform a major procurement contract.
(b) At the time of submitting a bid, proposal, or offer to the office, a vendor shall include:
(1) A disclosure of the vendor's name and address and, as applicable, the names and addresses of the following:
(A) (i) If the vendor is a corporation, the officers, directors, and each stockholder holding more than a ten percent (10%) interest in the corporation.
(ii) However, 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;
(2) 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;
(3) A disclosure of all the states and jurisdictions in which the vendor has contracts to supply gaming goods or services, including without limitation lottery goods and services, and the nature of the goods or services involved for each state or jurisdiction;
(4) (A) 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 the vendor's license, contract, or operation and the disposition of each instance in each state or jurisdiction.
(B) If a lottery or gaming license or contract has been revoked or has not been renewed or any lottery or gaming license or application has been either denied or is pending and has remained pending for more than six (6)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 a license shall be disclosed;
(5) (A) A disclosure of the details of a finding or plea, conviction, or adjudication of guilt in a state, federal, foreign, or international court or tribunal for a criminal offense other than a traffic violation committed by the vendor or a person identified under subdivision (b)(1) of this section.
(B) (i) The office may request that any or all of the persons identified under subdivision (b)(1) of this section undergo a state and federal criminal background check.
(ii) If requested, a state and federal criminal background check shall be conducted under § 23-115-601(e);
(6) A disclosure of the details of a vendor's:
(A) Bankruptcy, insolvency, or reorganization;
(B) Corporate or individual purchase or takeover of another corporation, including without limitation the assumption of bonded indebtedness or other debts or liabilities; and
(C) Pending litigation;
(7) The vendor's most recent financial statement, the most recent audit report of the vendor's operations, and a disclosure of the vendor's internal financial controls and procedures for financial reporting; and
(8) Additional disclosures and information that the office determines is appropriate for the major procurement contract involved.
(c) If any portion 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.
(d) (1) The office shall not enter into a major procurement contract with a vendor that:
(A) Has not complied with the disclosure requirements of this section;
(B) Has been found guilty of a felony related to the security or integrity of a lottery in this or any other jurisdiction; or
(C) Has an ownership interest in an entity that has supplied lottery goods or services under contract to the office regarding the request for proposals pertaining to those particular goods or services.
(2) The office may terminate a major procurement contract with a vendor that does not comply with requirements for periodically updating disclosures during the term of a major procurement contract as specified in the major procurement contract.
(3) 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 office of the competence, integrity, background, and character of a vendor for a major procurement contract.
(e) (1) A vendor who provides or proposes to provide goods or services under a major procurement contract shall not provide a gift or compensation to:
(A) The Director of the Office of the Arkansas Lottery, an employee of the Office of the Arkansas Lottery, the Director of the Department of Finance and Administration, the Deputy Director of the Department of Finance and Administration, or a member of the Legislative Council; or
(B) A member of the immediate family of the Director of the Office of the Arkansas Lottery, an employee of the office, the Director of the Department of Finance and Administration, the Deputy Director of the Department of Finance and Administration, or a member of the Legislative Council.
(2) (A) A person who knowingly violates subdivision (e)(1) of this section shall be guilty of a Class A misdemeanor.
(B) The Arkansas Ethics Commission may investigate and enforce alleged violations of subdivision (e)(1) of this section under the authority granted by §§ 7-6-217 and 7-6-218.
(f) (1) A public official, the Director of the Department of Finance and Administration, and the Deputy Director of the Department of Finance and Administration shall not knowingly own a financial interest in a vendor.
(2) (A) If a public official, the Director of the Department of Finance and Administration, or the Deputy Director of the Department of Finance and Administration becomes aware that he or she owns a financial interest in a vendor, the public official, the Director of the Department of Finance and Administration, or the Deputy Director of the Department of Finance and Administration shall divest the financial interest as soon as possible.
(B) A public official, the Director of the Department of Finance and Administration, or the Deputy Director of the Department of Finance and Administration shall not divest the financial interest to a member of his or her immediate family.
Section: 23-115-502 23-115-503 23-115-504 NextLast modified: November 15, 2016