Okla. Stat. tit. 3A, § 3A-716: Performance bond, letter of credit or securities –

Competitive bidding.

A. Each vendor shall, at the execution of the contract with the

Oklahoma Lottery Commission, post a performance bond or letter of

credit from a bank or credit provider acceptable to the Commission

in an amount as deemed necessary by the Commission for that

particular bid or contract. In lieu of the bond, 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 are rated in one of the three highest

classifications by an established nationally recognized investment

rating service. Securities eligible under this subsection are

limited to:

1. Certificates of deposit issued by solvent banks or savings

associations approved by the Commission and which are organized and

existing under the laws of this state or under the laws of the

United States;

2. United States bonds, notes, 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; and

3. Corporate bonds approved by the State Treasurer. The

corporation which issued the bonds shall not be an affiliate or

subsidiary of the depositor.

The securities shall be held in trust and shall have at all

times a market value at least equal to the full amount estimated to

be paid annually to the lottery vendor under contract.

B. Each vendor shall be qualified to do business in this state

and shall file appropriate tax returns as provided by the laws of

this state. All contracts under this section shall be governed by

the laws of this state.

C. No contract shall be let with any vendor in which a state

elected official has a substantial financial interest. A

substantial financial interest includes, but is not limited to, an

ownership interest of five percent (5%) or more in a business

enterprise.

D. All major procurement contracts must be competitively bid

pursuant to the Oklahoma Central Purchasing Act. On all such

contracts, the Director of Central Purchasing shall cooperate with

the Commission in the drafting of bid specifications and the

selection of vendors to allow the selection of vendors that provide

the greatest long-term benefit to the state, the greatest integrity

for the Commission, and the best service and products for the

public.