Florida Senate - 2015                             CS for SB 1032
       
       
        
       By the Committee on Regulated Industries; and Senators Richter,
       Diaz de la Portilla, and Braynon
       
       
       
       
       580-02816-15                                          20151032c1
    1                        A bill to be entitled                      
    2         An act relating to point-of-sale terminals; amending
    3         s. 24.103, F.S.; defining the term “point-of-sale
    4         terminal”; amending s. 24.105, F.S.; authorizing the
    5         Department of the Lottery to create a program that
    6         authorizes certain persons to purchase a ticket or
    7         game at a point-of-sale terminal; authorizing the
    8         department to adopt rules; amending s. 24.112, F.S.;
    9         authorizing the department, a retailer operating from
   10         one or more locations, or a vendor approved by the
   11         department to use a point-of-sale terminal to sell a
   12         lottery ticket or game; requiring a point-of-sale
   13         terminal to perform certain functions; specifying that
   14         the point-of-sale terminal may not reveal winning
   15         numbers; prohibiting a point-of-sale terminal from
   16         including video depictions of slot machine or casino
   17         game themes or titles for game play; prohibiting a
   18         point-of-sale terminal from being used to redeem a
   19         winning ticket; providing that revenue generated by a
   20         point-of-sale-terminal shall be used to enhance
   21         instructional technology resources for students and
   22         teachers in this state; providing an effective date.
   23          
   24  Be It Enacted by the Legislature of the State of Florida:
   25  
   26         Section 1. Section 24.103, Florida Statutes, is reordered
   27  and amended to read:
   28         24.103 Definitions.—As used in this act, the term:
   29         (1) “Department” means the Department of the Lottery.
   30         (6)(2) “Secretary” means the secretary of the department.
   31         (3) “Person” means any individual, firm, association, joint
   32  adventure, partnership, estate, trust, syndicate, fiduciary,
   33  corporation, or other group or combination and includes an shall
   34  include any agency or political subdivision of the state.
   35         (4) “Point-of-sale terminal” means an electronic device
   36  used to process credit card, debit card, or other similar charge
   37  card payments at retail locations which is supported by networks
   38  that enable verification, payment, transfer of funds, and
   39  logging of transactions.
   40         (2)(4) “Major procurement” means a procurement for a
   41  contract for the printing of tickets for use in any lottery
   42  game, consultation services for the startup of the lottery, any
   43  goods or services involving the official recording for lottery
   44  game play purposes of a player’s selections in any lottery game
   45  involving player selections, any goods or services involving the
   46  receiving of a player’s selection directly from a player in any
   47  lottery game involving player selections, any goods or services
   48  involving the drawing, determination, or generation of winners
   49  in any lottery game, the security report services provided for
   50  in this act, or any goods and services relating to marketing and
   51  promotion which exceed a value of $25,000.
   52         (5) “Retailer” means a person who sells lottery tickets on
   53  behalf of the department pursuant to a contract.
   54         (7)(6) “Vendor” means a person who provides or proposes to
   55  provide goods or services to the department, but does not
   56  include an employee of the department, a retailer, or a state
   57  agency.
   58         Section 2. Present subsections (19) and (20) of section
   59  24.105, Florida Statutes, are redesignated as subsections (20)
   60  and (21), respectively, and a new subsection (19) is added to
   61  that section, to read:
   62         24.105 Powers and duties of department.—The department
   63  shall:
   64         (19) Have the authority to create a program that allows a
   65  person who is 18 years of age or older to purchase a lottery
   66  ticket or game at a point-of-sale terminal. The department may
   67  adopt rules to administer the program.
   68         Section 3. Section 24.112, Florida Statutes, is amended to
   69  read:
   70         24.112 Retailers of lottery tickets; authorization of
   71  vending machines; point-of-sale terminals to dispense lottery
   72  tickets.—
   73         (1) The department shall promulgate rules specifying the
   74  terms and conditions for contracting with retailers who will
   75  best serve the public interest and promote the sale of lottery
   76  tickets.
   77         (2) In the selection of retailers, the department shall
   78  consider factors such as financial responsibility, integrity,
   79  reputation, accessibility of the place of business or activity
   80  to the public, security of the premises, the sufficiency of
   81  existing retailers to serve the public convenience, and the
   82  projected volume of the sales for the lottery game involved. In
   83  the consideration of these factors, the department may require
   84  the information it deems necessary of any person applying for
   85  authority to act as a retailer. However, the department may not
   86  establish a limitation upon the number of retailers and shall
   87  make every effort to allow small business participation as
   88  retailers. It is the intent of the Legislature that retailer
   89  selections be based on business considerations and the public
   90  convenience and that retailers be selected without regard to
   91  political affiliation.
   92         (3) The department may shall not contract with any person
   93  as a retailer who:
   94         (a) Is less than 18 years of age.
   95         (b) Is engaged exclusively in the business of selling
   96  lottery tickets; however, this paragraph may shall not preclude
   97  the department from selling lottery tickets.
   98         (c) Has been convicted of, or entered a plea of guilty or
   99  nolo contendere to, a felony committed in the preceding 10
  100  years, regardless of adjudication, unless the department
  101  determines that:
  102         1. The person has been pardoned or the person’s civil
  103  rights have been restored;
  104         2. Subsequent to such conviction or entry of plea the
  105  person has engaged in the kind of law-abiding commerce and good
  106  citizenship that would reflect well upon the integrity of the
  107  lottery; or
  108         3. If the person is a firm, association, partnership,
  109  trust, corporation, or other entity, the person has terminated
  110  its relationship with the individual whose actions directly
  111  contributed to the person’s conviction or entry of plea.
  112         (4) The department shall issue a certificate of authority
  113  to each person with whom it contracts as a retailer for purposes
  114  of display pursuant to subsection (6). The issuance of the
  115  certificate may shall not confer upon the retailer any right
  116  apart from that specifically granted in the contract. The
  117  authority to act as a retailer may shall not be assignable or
  118  transferable.
  119         (5) A Any contract executed by the department pursuant to
  120  this section shall specify the reasons for any suspension or
  121  termination of the contract by the department, including, but
  122  not limited to:
  123         (a) Commission of a violation of this act or rule adopted
  124  pursuant thereto.
  125         (b) Failure to accurately account for lottery tickets,
  126  revenues, or prizes as required by the department.
  127         (c) Commission of any fraud, deceit, or misrepresentation.
  128         (d) Insufficient sale of tickets.
  129         (e) Conduct prejudicial to public confidence in the
  130  lottery.
  131         (f) Any material change in any matter considered by the
  132  department in executing the contract with the retailer.
  133         (6) Each Every retailer shall post and keep conspicuously
  134  displayed in a location on the premises accessible to the public
  135  its certificate of authority and, with respect to each game, a
  136  statement supplied by the department of the estimated odds of
  137  winning a some prize for the game.
  138         (7) A No contract with a retailer may not shall authorize
  139  the sale of lottery tickets at more than one location, and a
  140  retailer may sell lottery tickets only at the location stated on
  141  the certificate of authority.
  142         (8) With respect to any retailer whose rental payments for
  143  premises are contractually computed, in whole or in part, on the
  144  basis of a percentage of retail sales, and where such
  145  computation of retail sales is not explicitly defined to include
  146  sales of tickets in a state-operated lottery, the compensation
  147  received by the retailer from the department shall be deemed to
  148  be the amount of the retail sale for the purposes of such
  149  contractual compensation.
  150         (9)(a) The department may require each every retailer to
  151  post an appropriate bond as determined by the department, using
  152  an insurance company acceptable to the department, in an amount
  153  not to exceed twice the average lottery ticket sales of the
  154  retailer for the period within which the retailer is required to
  155  remit lottery funds to the department. For the first 90 days of
  156  sales of a new retailer, the amount of the bond may not exceed
  157  twice the average estimated lottery ticket sales for the period
  158  within which the retailer is required to remit lottery funds to
  159  the department. This paragraph does shall not apply to lottery
  160  tickets that which are prepaid by the retailer.
  161         (b) In lieu of such bond, the department may purchase
  162  blanket bonds covering all or selected retailers or may allow a
  163  retailer to deposit and maintain with the Chief Financial
  164  Officer securities that are interest bearing or accruing and
  165  that, with the exception of those specified in subparagraphs 1.
  166  and 2., are rated in one of the four highest classifications by
  167  an established nationally recognized investment rating service.
  168  Securities eligible under this paragraph shall be limited to:
  169         1. Certificates of deposit issued by solvent banks or
  170  savings associations organized and existing under the laws of
  171  this state or under the laws of the United States and having
  172  their principal place of business in this state.
  173         2. United States bonds, notes, and bills for which the full
  174  faith and credit of the government of the United States is
  175  pledged for the payment of principal and interest.
  176         3. General obligation bonds and notes of any political
  177  subdivision of the state.
  178         4. Corporate bonds of any corporation that is not an
  179  affiliate or subsidiary of the depositor.
  180  
  181  Such securities shall be held in trust and shall have at all
  182  times a market value at least equal to an amount required by the
  183  department.
  184         (10) Each Every contract entered into by the department
  185  pursuant to this section shall contain a provision for payment
  186  of liquidated damages to the department for any breach of
  187  contract by the retailer.
  188         (11) The department shall establish procedures by which
  189  each retailer shall account for all tickets sold by the retailer
  190  and account for all funds received by the retailer from such
  191  sales. The contract with each retailer shall include provisions
  192  relating to the sale of tickets, payment of moneys to the
  193  department, reports, service charges, and interest and
  194  penalties, if necessary, as the department shall deem
  195  appropriate.
  196         (12) No Payment by a retailer to the department for tickets
  197  may not shall be in cash. All such payments shall be in the form
  198  of a check, bank draft, electronic fund transfer, or other
  199  financial instrument authorized by the secretary.
  200         (13) Each retailer shall provide accessibility for disabled
  201  persons on habitable grade levels. This subsection does not
  202  apply to a retail location that which has an entrance door
  203  threshold more than 12 inches above ground level. As used in
  204  herein and for purposes of this subsection only, the term
  205  “accessibility for disabled persons on habitable grade levels”
  206  means that retailers shall provide ramps, platforms, aisles and
  207  pathway widths, turnaround areas, and parking spaces to the
  208  extent these are required for the retailer’s premises by the
  209  particular jurisdiction where the retailer is located.
  210  Accessibility shall be required to only one point of sale of
  211  lottery tickets for each lottery retailer location. The
  212  requirements of this subsection shall be deemed to have been met
  213  if, in lieu of the foregoing, disabled persons can purchase
  214  tickets from the retail location by means of a drive-up window,
  215  provided the hours of access at the drive-up window are not less
  216  than those provided at any other entrance at that lottery
  217  retailer location. Inspections for compliance with this
  218  subsection shall be performed by those enforcement authorities
  219  responsible for enforcement pursuant to s. 553.80 in accordance
  220  with procedures established by those authorities. Those
  221  enforcement authorities shall provide to the Department of the
  222  Lottery a certification of noncompliance for any lottery
  223  retailer not meeting such requirements.
  224         (14) The secretary may, after filing with the Department of
  225  State his or her manual signature certified by the secretary
  226  under oath, execute or cause to be executed contracts between
  227  the department and retailers by means of engraving, imprinting,
  228  stamping, or other facsimile signature.
  229         (15) A vending machine may be used to dispense online
  230  lottery tickets, instant lottery tickets, or both online and
  231  instant lottery tickets.
  232         (a) The vending machine must:
  233         1. Dispense a lottery ticket after a purchaser inserts a
  234  coin or currency in the machine.
  235         2. Be capable of being electronically deactivated for a
  236  period of 5 minutes or more.
  237         3. Be designed to prevent its use for any purpose other
  238  than dispensing a lottery ticket.
  239         (b) In order to be authorized to use a vending machine to
  240  dispense lottery tickets, a retailer must:
  241         1. Locate the vending machine in the retailer’s direct line
  242  of sight to ensure that purchases are only made by persons at
  243  least 18 years of age.
  244         2. Ensure that at least one employee is on duty when the
  245  vending machine is available for use. However, if the retailer
  246  has previously violated s. 24.1055, at least two employees must
  247  be on duty when the vending machine is available for use.
  248         (c) A vending machine that dispenses a lottery ticket may
  249  dispense change to a purchaser but may not be used to redeem any
  250  type of winning lottery ticket.
  251         (d) The vending machine, or any machine or device linked to
  252  the vending machine, may not include or make use of video reels
  253  or mechanical reels or other video depictions of slot machine or
  254  casino game themes or titles for game play. This does not
  255  preclude the use of casino game themes or titles on such tickets
  256  or signage or advertising displays on the machines.
  257         (16) The department, a retailer operating from one or more
  258  locations, or a vendor approved by the department may use a
  259  point-of-sale terminal to facilitate the sale of a lottery
  260  ticket or game.
  261         (a) A point-of-sale terminal must:
  262         1. Dispense a paper lottery ticket with numbers selected by
  263  the purchaser or selected randomly by the machine after the
  264  purchaser uses a credit card, debit card, charge card, or other
  265  similar card issued by a bank, savings association, credit
  266  union, or charge card company or issued by a retailer pursuant
  267  to part II of chapter 520 for payment;
  268         2. Recognize a valid driver license or use another age
  269  verification process approved by the department to ensure that
  270  only persons at least 18 years of age may purchase a lottery
  271  ticket or game;
  272         3.Process a lottery transaction through a platform that is
  273  certified or otherwise approved by the department; and
  274         4. Be in compliance with all applicable department
  275  requirements related to the lottery ticket or game offered for
  276  sale.
  277         (b) A point-of-sale terminal does not reveal winning
  278  numbers, which are selected at a subsequent time and different
  279  location through a drawing by the Florida Lottery.
  280         (c) A point-of-sale terminal, or any machine or device
  281  linked to the point-of-sale terminal, may not include or make
  282  use of video reels or mechanical reels or other video depictions
  283  of slot machine or casino game themes or titles for game play.
  284  This does not preclude the use of casino game themes or titles
  285  on a lottery ticket or game or on the signage or advertising
  286  displays on the terminal.
  287         (d)A point-of-sale terminal may not be used to redeem a
  288  winning ticket.
  289         (17) Revenue generated from a point-of-sale terminal under
  290  this section shall be used to enhance instructional technology
  291  resources for students and teachers in this state.
  292         Section 4. This act shall take effect upon becoming a law.