CODING: Words stricken are deletions; words underlined are additions.





                                                   HOUSE AMENDMENT

                                                  Bill No. HB 4227

    Amendment No. 01 (for drafter's use only)

                            CHAMBER ACTION
              Senate                               House
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 4                                                                

 5                                           ORIGINAL STAMP BELOW

 6

 7

 8

 9

10                                                                

11  The Committee on Crime & Punishment offered the following:

12

13         Amendment (with title amendment) 

14  Remove from the bill:  Everything after the enacting clause

15

16  and insert in lieu thereof:

17         Section 1.  Section 849.094, Florida Statutes, is

18  amended to read:

19         849.094  Game promotion in connection with sale of

20  consumer products or services.--

21         (1)  As used in this section, the term:

22         (a)  "Game promotion" means, but is not limited to, a

23  contest, game of chance, sweepstakes, or gift enterprise,

24  conducted within or throughout the state or offered to

25  residents of this state and other states in connection with

26  the sale, promotion, or advertisement of a consumer product or

27  service of consumer products or services, and in which the

28  elements of chance and prize are present. The term includes,

29  but is not limited to, enterprises commonly known as

30  "matching," "instant winner," or "preselected sweepstakes"

31  which involve the distribution of winning numbers or game

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 4227

    Amendment No. 01 (for drafter's use only)





 1  pieces designated as such in the game promotion rules.

 2  However, "game promotion" shall not be construed to apply to

 3  bingo games conducted pursuant to s. 849.0931.

 4         (b)  "Operator" means any person, firm, corporation, or

 5  association or agent or employee thereof who promotes,

 6  operates, or conducts a game promotion, or any entity

 7  authorized in any manner to promote, operate, or conduct a

 8  game promotion, except any charitable nonprofit organization.

 9         (c)  "Older individual" means an individual who is 60

10  years of age or older.

11         (2)  It is unlawful for any operator:

12         (a)  To design, engage in, promote, or conduct such a

13  game promotion, in connection with the promotion or sale of

14  consumer products or services, wherein the winner may be

15  predetermined or the game may be manipulated or rigged so as

16  to:

17         1.  Allocate a winning game or any portion thereof to

18  certain lessees, agents, or franchises; or

19         2.  Allocate a winning game or part thereof to a

20  particular period of the game promotion or to a particular

21  geographic area;

22         (b)  Arbitrarily to remove, disqualify, disallow, or

23  reject any entry;

24         (c)  To fail to award prizes offered;

25         (d)  To print, publish, or circulate literature or

26  advertising material used in connection with such game

27  promotions which is false, deceptive, or misleading; or

28         (e)  To require an entry fee, payment, or proof of

29  purchase as a condition of entering a game promotion;.

30         (f)  To send advertising and promotional material in

31  connection with game promotion to any person or any guardian

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 4227

    Amendment No. 01 (for drafter's use only)





 1  or agent who has requested that his or her name be deleted

 2  from such game promotion distribution. Such a request must be

 3  processed by the operator within 60 days; or

 4         (g)  To use more than one type size, color of print, or

 5  type style within the same sentence or clause in any letter or

 6  on any envelope mailed to the public in connection with game

 7  promotion regarding the fact, likelihood, or odds of winning a

 8  prize.

 9

10  Paragraphs (f) and (g) do not apply to timeshare prize and

11  gift promotional offers defined in s. 721.111.

12         (3)  The operator of a game promotion in which the

13  total announced value of the prizes offered is greater than

14  $5,000 shall file with the Department of State a copy of the

15  rules and regulations of the game promotion and a list of all

16  prizes and prize categories offered at least 7 days before the

17  commencement of the game promotion.  Such rules and

18  regulations may not thereafter be changed, modified, or

19  altered.  The operator of a game promotion shall conspicuously

20  post the rules and regulations of such game promotion in each

21  and every retail outlet or place where such game promotion may

22  be played or participated in by the public and shall also

23  publish the rules and regulations in all game promotion

24  materials distributed to the public through the mail and in

25  all advertising copy used in connection therewith. Any

26  envelope distributed to or available to the public in

27  connection with game promotion must include the following

28  information on the outside of the envelope in 12-point type or

29  larger:

30         (a)  On the same side that the inducement appears, the

31  odds of winning a particular prize if that prize is referenced

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 4227

    Amendment No. 01 (for drafter's use only)





 1  on the envelope.

 2         (b)  The physical address of the operator.

 3         (c)  The toll-free number for the Department of State,

 4  along with a statement directing individuals to call the

 5  number if they have questions regarding the prizes offered or

 6  whether the operator is registered with the Department of

 7  State.

 8

 9  Radio and television announcements may indicate that the rules

10  and regulations are available at retail outlets or from the

11  operator of the promotion. A nonrefundable filing fee of $100

12  shall accompany each filing and shall be deposited into the

13  Division of Licensing Trust Fund to be used to pay the costs

14  incurred in administering and enforcing the provisions of this

15  section.

16         (4)(a)  Every operator of such a game promotion in

17  which the total announced value of the prizes offered is

18  greater than $5,000 shall establish a trust account, in a

19  national or state-chartered financial institution, with a

20  balance sufficient to pay or purchase the total value of all

21  prizes offered. On a form supplied by the Department of State,

22  an official of the financial institution holding the trust

23  account shall set forth the dollar amount of the trust

24  account, the identity of the entity or individual establishing

25  the trust account, and the name of the game promotion for

26  which the trust account has been established.  Such form shall

27  be filed with the Department of State at least 7 days in

28  advance of the commencement of the game promotion.  In lieu of

29  establishing such trust account, the operator may obtain a

30  surety bond in an amount equivalent to the total value of all

31  prizes offered; and such bond shall be filed with the

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 4227

    Amendment No. 01 (for drafter's use only)





 1  Department of State at least 7 days in advance of the

 2  commencement of the game promotion.

 3         1.  The moneys held in the trust account may be

 4  withdrawn in order to pay the prizes offered only upon

 5  certification to the Department of State of the name of the

 6  winner or winners and the amount of the prize or prizes and

 7  the value thereof.

 8         2.  If the operator of a game promotion has obtained a

 9  surety bond in lieu of establishing a trust account, the

10  amount of the surety bond shall equal at all times the total

11  amount of the prizes offered.

12         (b)  The Department of State may waive the provisions

13  of this subsection for any operator who has conducted game

14  promotions in the state for not less than 5 consecutive years

15  and who has not had any civil, criminal, or administrative

16  action instituted against him or her by the state or an agency

17  of the state for violation of this section within that 5-year

18  period. Such waiver may be revoked upon the commission of a

19  violation of this section by such operator, as determined by

20  the Department of State.

21         (5)  Every operator of a game promotion in which the

22  total announced value of the prizes offered is greater than

23  $5,000 shall provide the Department of State with a certified

24  list of the names and addresses of all persons, whether from

25  this state or from another state, who have won prizes which

26  have a value of more than $25, the value of such prizes, and

27  the dates when the prizes were won within 60 days after such

28  winners have been finally determined. The operator shall

29  provide a copy of the list of winners, without charge, to any

30  person who requests it.  In lieu of the foregoing, the

31  operator of a game promotion may, at his or her option,

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 4227

    Amendment No. 01 (for drafter's use only)





 1  publish the same information about the winners in a Florida

 2  newspaper of general circulation within 60 days after such

 3  winners have been determined and shall provide to the

 4  Department of State a certified copy of the publication

 5  containing the information about the winners; however, when

 6  this option is exercised by the operator, all published

 7  materials distributed to the public must indicate that the

 8  winners will be announced in this manner. The operator of a

 9  game promotion is not required to notify a winner by mail or

10  by telephone when the winner is already in possession of a

11  game card from which the winner can determine that he or she

12  has won a designated prize.  All winning entries shall be held

13  by the operator for a period of 90 days after the close or

14  completion of the game.

15         (6)  The Department of State shall keep the certified

16  list of winners for a period of at least 6 months after

17  receipt of the certified list. The department thereafter may

18  dispose of all records and lists.

19         (7)  No operator shall force, directly or indirectly, a

20  lessee, agent, or franchise dealer to purchase or participate

21  in any game promotion. For the purpose of this section,

22  coercion or force shall be presumed in these circumstances in

23  which a course of business extending over a period of 1 year

24  or longer is materially changed coincident with a failure or

25  refusal of a lessee, agent, or franchise dealer to participate

26  in such game promotions. Such force or coercion shall further

27  be presumed when an operator advertises generally that game

28  promotions are available at its lessee dealers or agent

29  dealers.

30         (8)(a)  The Department of State has the authority to

31  adopt rules pursuant to ss. 120.54 and 120.536(1) to implement

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 4227

    Amendment No. 01 (for drafter's use only)





 1  the provisions of this section shall have the power to

 2  promulgate such rules and regulations respecting the operation

 3  of game promotions as it may deem advisable.

 4         (b)  Whenever the Department of State or the Department

 5  of Legal Affairs has reason to believe that a game promotion

 6  is being operated in violation of this section, it may bring

 7  an action in the circuit court of any judicial circuit in

 8  which the game promotion is being operated in the name and on

 9  behalf of the people of the state against any operator thereof

10  to enjoin the continued operation of such game promotion

11  anywhere within the state.

12         (9)(a)  Any person, firm, or corporation, or

13  association or agent or employee thereof, or any operator who

14  engages in any acts or practices stated in this section to be

15  unlawful, or who violates any of the rules adopted and

16  regulations made pursuant to this section, is guilty of a

17  misdemeanor of the second degree, punishable as provided in s.

18  775.082 or s. 775.083. However, when such unlawful acts or

19  practices or such rule violations are against an older

20  individual, the operator is guilty of a misdemeanor of the

21  first degree, punishable as provided in s. 775.082 or s.

22  775.083.

23         (b)  Any person, firm, or corporation, or association,

24  agent, or employee thereof, or any operator who violates any

25  provision of this section or any of the rules adopted and

26  regulations made pursuant to this section shall be liable for

27  a civil penalty of not more than $1,000 for each such

28  violation, which shall accrue to the state and may be

29  recovered in a civil action brought by the Department of State

30  or the Department of Legal Affairs. However, when such

31  violation is against an older individual, the amount of the

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                                                   HOUSE AMENDMENT

                                                  Bill No. HB 4227

    Amendment No. 01 (for drafter's use only)





 1  civil penalty shall be not more than $5,000 for each such

 2  violation.

 3         (10)  This section does not apply to actions or

 4  transactions regulated by the Department of Business and

 5  Professional Regulation or to the activities of nonprofit

 6  organizations or to any other organization engaged in any

 7  enterprise other than the sale of consumer products or

 8  services. Subsections (3), (4), (5), (6), and (7) and

 9  paragraph (8)(a) and any of the rules made pursuant thereto do

10  not apply to television or radio broadcasting companies

11  licensed by the Federal Communications Commission.

12         Section 2.  This act shall take effect October 1, 1998.

13

14

15  ================ T I T L E   A M E N D M E N T ===============

16  And the title is amended as follows:

17         On page 1, line 2,

18  remove from the title of the bill:  all of said lines

19

20  and insert in lieu thereof:

21         An act relating to game promotions; amending s.

22         849.094, F.S.; redefining the terms "game

23         promotion" and "operator" and defining the term

24         "older individual"; prohibiting certain acts in

25         connection with game promotions and promotional

26         materials therefor; requiring certain

27         information to be printed on envelopes;

28         providing penalties, including increased

29         penalties when an unlawful act is against an

30         older individual; providing an effective date.

31

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