Senate Bill sb0364

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    Florida Senate - 2001                                   SB 364

    By Senator Saunders





    25-308-01

  1                      A bill to be entitled

  2         An act relating to the State Lottery

  3         Commission; repealing ss. 24.103(3), 24.106,

  4         F.S., relating to the State Lottery Commission;

  5         abolishing the commission; amending ss. 24.105,

  6         24.108, F.S.; deleting references to the

  7         commission, to conform; providing an effective

  8         date.

  9

10  Be It Enacted by the Legislature of the State of Florida:

11

12         Section 1.  Subsection (3) of section 24.103, Florida

13  Statutes, and section 24.106, Florida Statutes, are repealed.

14         Section 2.  Subsections (4) through (21) of section

15  24.105, Florida Statutes, are amended to read:

16         24.105  Powers and duties of department.--The

17  department shall:

18         (4)  Make available to the commission any record or

19  other information relating to the lottery that the commission

20  requests.

21         (4)(5)  Submit monthly and annual reports to the

22  commission, the Governor, the Treasurer, the President of the

23  Senate, and the Speaker of the House of Representatives

24  disclosing the total lottery revenues, prize disbursements,

25  and other expenses of the department during the preceding

26  month.  The annual report shall additionally describe the

27  organizational structure of the department, including its

28  hierarchical structure, and shall identify the divisions and

29  bureaus created by the secretary and summarize the

30  departmental functions performed by each.

31         (5)(6)  Adopt by rule a system of internal audits.

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  1         (6)(7)  Maintain weekly or more frequent records of

  2  lottery transactions, including the distribution of tickets to

  3  retailers, revenues received, claims for prizes, prizes paid,

  4  and other financial transactions of the department.

  5         (7)(8)  Make a continuing study of the lottery to

  6  ascertain any defects of this act or rules adopted thereunder

  7  which could result in abuses in the administration of the

  8  lottery; make a continuing study of the operation and the

  9  administration of similar laws in other states and of federal

10  laws which may affect the lottery; and make a continuing study

11  of the reaction of the public to existing and potential

12  features of the lottery.

13         (8)(9)  Conduct such market research as is necessary or

14  appropriate, which may include an analysis of the demographic

15  characteristics of the players of each lottery game and an

16  analysis of advertising, promotion, public relations,

17  incentives, and other aspects of communications.

18         (9)(10)  Adopt rules governing the establishment and

19  operation of the state lottery, including:

20         (a)  The type of lottery games to be conducted, except

21  that:

22         1.  No name of an elected official shall appear on the

23  ticket or play slip of any lottery game or on any prize or on

24  any instrument used for the payment of prizes, unless such

25  prize is in the form of a state warrant.

26         2.  No coins or currency shall be dispensed from any

27  electronic computer terminal or device used in any lottery

28  game.

29         3.  Other than as provided in subparagraph 4., no

30  terminal or device may be used for any lottery game which may

31

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  1  be operated solely by the player without the assistance of the

  2  retailer.

  3         4.  The only player-activated machine which may be

  4  utilized is a machine which dispenses instant lottery game

  5  tickets following the insertion of a coin or currency by a

  6  ticket purchaser.  To be authorized a machine must: be under

  7  the supervision and within the direct line of sight of the

  8  lottery retailer to ensure that the machine is monitored and

  9  only operated by persons at least 18 years of age; be capable

10  of being electronically deactivated by the retailer to

11  prohibit use by persons less than 18 years of age through the

12  use of a lockout device that maintains the machine's

13  deactivation for a period of no less than 5 minutes; and be

14  designed to prevent its use or conversion for use in any

15  manner other than the dispensing of instant lottery tickets.

16  Authorized machines may dispense change to players purchasing

17  tickets but may not be utilized for paying the holders of

18  winning tickets of any kind. At least one clerk must be on

19  duty at the lottery retailer while the machine is in

20  operation. However, at least two clerks must be on duty at any

21  lottery location which has violated s. 24.1055.

22         (b)  The sales price of tickets.

23         (c)  The number and sizes of prizes.

24         (d)  The method of selecting winning tickets.  However,

25  if a lottery game involves a drawing, the drawing shall be

26  public and witnessed by an accountant employed by an

27  independent certified public accounting firm.  The equipment

28  used in the drawing shall be inspected before and after the

29  drawing.

30         (e)  The manner of payment of prizes to holders of

31  winning tickets.

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  1         (f)  The frequency of drawings or selections of winning

  2  tickets.

  3         (g)  The number and type of locations at which tickets

  4  may be purchased.

  5         (h)  The method to be used in selling tickets.

  6         (i)  The manner and amount of compensation of

  7  retailers.

  8         (j)  Such other matters necessary or desirable for the

  9  efficient or economical operation of the lottery or for the

10  convenience of the public.

11         (10)(11)  Have the authority to hold copyrights,

12  trademarks, and service marks and enforce its rights with

13  respect thereto.

14         (11)(12)  In the selection of games and method of

15  selecting winning tickets, be sensitive to the impact of the

16  lottery upon the pari-mutuel industry and, accordingly, the

17  department may use for any game the theme of horseracing,

18  dogracing, or jai alai and may allow a lottery game to be

19  based upon a horserace, dograce, or jai alai activity so long

20  as the outcome of such lottery game is determined entirely by

21  chance.

22         (12)(13)(a)  Determine by rule information relating to

23  the operation of the lottery which is confidential and exempt

24  from the provisions of s. 119.07(1) and s. 24(a), Art. I of

25  the State Constitution.  Such information includes trade

26  secrets; security measures, systems, or procedures; security

27  reports; information concerning bids or other contractual

28  data, the disclosure of which would impair the efforts of the

29  department to contract for goods or services on favorable

30  terms; employee personnel information unrelated to

31  compensation, duties, qualifications, or responsibilities; and

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  1  information obtained by the Division of Security pursuant to

  2  its investigations which is otherwise confidential.  To be

  3  deemed confidential, the information must be necessary to the

  4  security and integrity of the lottery. Confidential

  5  information may be released to other governmental entities as

  6  needed in connection with the performance of their duties.

  7  The receiving governmental entity shall retain the

  8  confidentiality of such information as provided for in this

  9  subsection.

10         (b)  Maintain the confidentiality of the street address

11  and the telephone number of a winner, in that such information

12  is confidential and exempt from the provisions of s. 119.07(1)

13  and s. 24(a), Art. I of the State Constitution, unless the

14  winner consents to the release of such information or as

15  provided for in s. 24.115(4) or s. 409.2577.

16         (c)  Any information made confidential and exempt from

17  the provisions of s. 119.07(1) under this subsection shall be

18  disclosed to a member of the commission, to the Auditor

19  General, or to the independent auditor selected under s.

20  24.123 upon such person's request therefor.  If the President

21  of the Senate or the Speaker of the House of Representatives

22  certifies that information made confidential under this

23  subsection is necessary for effecting legislative changes, the

24  requested information shall be disclosed to him or her, and he

25  or she may disclose such information to members of the

26  Legislature and legislative staff as necessary to effect such

27  purpose.

28         (13)(14)  Have the authority to perform any of the

29  functions of the Department of Management Services under

30  chapter 255, chapter 273, chapter 281, chapter 283, or chapter

31  287, or any rules adopted under any such chapter, and may

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  1  grant approvals provided for under any such chapter or rules.

  2  If the department finds, by rule, that compliance with any

  3  such chapter would impair or impede the effective or efficient

  4  operation of the lottery, the department may adopt rules

  5  providing alternative procurement procedures.  Such

  6  alternative procedures shall be designed to allow the

  7  department to evaluate competing proposals and select the

  8  proposal that provides the greatest long-term benefit to the

  9  state with respect to the quality of the products or services,

10  dependability and integrity of the vendor, dependability of

11  the vendor's products or services, security, competence,

12  timeliness, and maximization of gross revenues and net

13  proceeds over the life of the contract.

14         (14)(15)  Have the authority to acquire real property

15  and make improvements thereon.  The title to such property

16  shall be vested in the Board of Trustees of the Internal

17  Improvement Trust Fund.  The board shall give the department

18  preference in leasing state-owned lands under the board's

19  control and may not exercise any jurisdiction over lands

20  purchased or leased by the department while such lands are

21  actively used by the department. Actions of the department

22  under this subsection are exempt from the time limitations and

23  deadlines of chapter 253.

24         (15)(16)  Have the authority to charge fees to persons

25  applying for contracts as vendors or retailers, which fees are

26  reasonably calculated to cover the costs of investigations and

27  other activities related to the processing of the application.

28         (16)(17)  Enter into contracts for the purchase, lease,

29  or lease-purchase of such goods and services as are necessary

30  for the operation and promotion of the state lottery,

31  including assistance provided by any governmental agency.

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  1         (17)(18)  In accordance with the provisions of this

  2  act, enter into contracts with retailers so as to provide

  3  adequate and convenient availability of tickets to the public

  4  for each game.

  5         (18)(19)  Have the authority to enter into agreements

  6  with other states for the operation and promotion of a

  7  multistate lottery if such agreements are in the best interest

  8  of the state lottery.  The authority conferred by this

  9  subsection is not effective until 1 year after the first day

10  of lottery ticket sales.

11         (19)(20)  Employ division directors and other staff as

12  may be necessary to carry out the provisions of this act;

13  however:

14         (a)  No person shall be employed by the department who

15  has been convicted of, or entered a plea of guilty or nolo

16  contendere to, a felony committed in the preceding 10 years,

17  regardless of adjudication, unless the department determines

18  that:

19         1.  The person has been pardoned or his or her civil

20  rights have been restored; or

21         2.  Subsequent to such conviction or entry of plea the

22  person has engaged in the kind of law-abiding commerce and

23  good citizenship that would reflect well upon the integrity of

24  the lottery.

25         (b)  No officer or employee of the department having

26  decisionmaking authority shall participate in any decision

27  involving any vendor or retailer with whom the officer or

28  employee has a financial interest.  No such officer or

29  employee may participate in any decision involving any vendor

30  or retailer with whom the officer or employee has discussed

31  employment opportunities without the approval of the secretary

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  1  or, if such officer is the secretary or any member of the

  2  commission, without the approval of the Governor.  Any officer

  3  or employee of the department shall notify the secretary of

  4  any such discussion or, if such officer is the secretary or a

  5  member of the commission, he or she shall notify the Governor.

  6  A violation of this paragraph is punishable in accordance with

  7  s. 112.317.

  8         (c)  No officer or employee of the department who

  9  leaves the employ of the department shall represent any vendor

10  or retailer before the department regarding any specific

11  matter in which the officer or employee was involved while

12  employed by the department, for a period of 1 year following

13  cessation of employment with the department.  A violation of

14  this paragraph is punishable in accordance with s. 112.317.

15         (d)  The department shall establish and maintain a

16  personnel program for its employees, including a personnel

17  classification and pay plan which may provide any or all of

18  the benefits provided in the Senior Management Service or

19  Selected Exempt Service.  Each officer or employee of the

20  department shall be a member of the Florida Retirement System.

21  The retirement class of each officer or employee shall be the

22  same as other persons performing comparable functions for

23  other agencies.  Employees of the department shall serve at

24  the pleasure of the secretary and shall be subject to

25  suspension, dismissal, reduction in pay, demotion, transfer,

26  or other personnel action at the discretion of the secretary.

27  Such personnel actions are exempt from the provisions of

28  chapter 120. All employees of the department are exempt from

29  the Career Service System provided in chapter 110 and,

30  notwithstanding the provisions of s. 110.205(5), are not

31  included in either the Senior Management Service or the

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  1  Selected Exempt Service. However, all employees of the

  2  department are subject to all standards of conduct adopted by

  3  rule for career service and senior management employees

  4  pursuant to chapter 110.  In the event of a conflict between

  5  standards of conduct applicable to employees of the Department

  6  of the Lottery the more restrictive standard shall apply.

  7  Interpretations as to the more restrictive standard may be

  8  provided by the Commission on Ethics upon request of an

  9  advisory opinion pursuant to s. 112.322(3)(a), for purposes of

10  this subsection the opinion shall be considered final action.

11         (20)(21)  Adopt by rule a code of ethics for officers

12  and employees of the department which supplements the

13  standards of conduct for public officers and employees imposed

14  by law.

15         Section 3.  Paragraph (b) of subsection (7) of section

16  24.108, Florida Statutes, is amended to read:

17         24.108  Division of Security; duties; security

18  report.--

19         (7)

20         (b)  The portion of the security report containing the

21  overall evaluation of the department in terms of each aspect

22  of security shall be presented to the commission, the

23  Governor, the President of the Senate, and the Speaker of the

24  House of Representatives.  The portion of the security report

25  containing specific recommendations shall be confidential and

26  shall be presented only to the secretary, the commission, the

27  Governor, and the Auditor General; however, upon certification

28  that such information is necessary for the purpose of

29  effecting legislative changes, such information shall be

30  disclosed to the President of the Senate and the Speaker of

31  the House of Representatives, who may disclose such

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  1  information to members of the Legislature and legislative

  2  staff as necessary to effect such purpose. However, any person

  3  who receives a copy of such information or other information

  4  which is confidential pursuant to this act or rule of the

  5  department shall maintain its confidentiality.  The

  6  confidential portion of the report is exempt from the

  7  provisions of s. 119.07(1) and s. 24(a), Art. I of the State

  8  Constitution.

  9         Section 4.  This act shall take effect upon becoming a

10  law.

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13                          SENATE SUMMARY

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      Abolishes the State Lottery Commission and conforms
15    related provisions.

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