Florida Senate - 2010 CS for CS for SB 674
By the Committees on Criminal Justice; and Regulated Industries;
and Senator Jones
591-05213-10 2010674c2
1 A bill to be entitled
2 An act relating to the state lottery; amending s.
3 24.105, F.S.; authorizing the use of player-activated
4 machines that have additional functionality; amending
5 s. 24.111, F.S.; adding limited liability companies to
6 the list of potential vendors that the Department of
7 the Lottery must investigate; providing that the
8 Department of the Lottery may lease all instant ticket
9 vending machines; prohibiting the department from
10 entering into a contract for a major procurement if a
11 managing member of the vendor has been convicted of a
12 felony; removing a duplicative provision; amending s.
13 24.113, F.S.; removing a provision limiting the
14 percentage of the same type of minority retailer that
15 the Department of the Lottery may contract with to 35
16 percent; amending s. 24.114, F.S.; providing a penalty
17 for failure by a retailer to remit funds as required;
18 providing an effective date.
19
20 Be It Enacted by the Legislature of the State of Florida:
21
22 Section 1. Paragraph (a) of subsection (9) of section
23 24.105, Florida Statutes, is amended to read:
24 24.105 Powers and duties of department.—The department
25 shall:
26 (9) Adopt rules governing the establishment and operation
27 of the state lottery, including:
28 (a) The type of lottery games to be conducted, except that:
29 1. No name of an elected official shall appear on the
30 ticket or play slip of any lottery game or on any prize or on
31 any instrument used for the payment of prizes, unless such prize
32 is in the form of a state warrant.
33 2. No coins or currency shall be dispensed from any
34 electronic computer terminal or device used in any lottery game.
35 3. Other than as provided in subparagraph 4., no terminal
36 or device may be used for any lottery game which may be operated
37 solely by the player without the assistance of the retailer.
38 4. Only the three types of The only player-activated
39 machines described in this subparagraph machine which may be
40 utilized is a machine which dispenses instant lottery game
41 tickets following the insertion of a coin or currency by a
42 ticket purchaser. To be authorized, a machine must: be under the
43 supervision and within the direct line of sight of the lottery
44 retailer to ensure that the machine is monitored and only
45 operated by persons at least 18 years of age and; be capable of
46 being electronically deactivated by the retailer to prohibit use
47 by persons less than 18 years of age through the use of a
48 lockout device that maintains the machine’s deactivation for a
49 period of no less than 5 minutes; and be designed to prevent its
50 use or conversion for use in any manner other than the
51 dispensing of instant lottery tickets. Authorized machines may
52 dispense change to players purchasing tickets but may not be
53 utilized for paying the holders of winning tickets of any kind.
54 At least one clerk must be on duty at the lottery retailer while
55 the machine is in operation. However, at least two clerks must
56 be on duty at any lottery location which has violated s.
57 24.1055. Not more than 10 machines may be installed at any
58 facility or location. In addition to the above requirements, the
59 following requirements must also be satisfied:
60 a. A machine may be used to dispense preprinted instant
61 lottery tickets, but the machine may not read or reveal the
62 results of the ticket or allow a player to redeem any ticket.
63 The machine, or any machine or device linked to the machine, may
64 not include or make use of video reels or mechanical reels or
65 other video depictions of slot machine or casino game themes or
66 titles for game play. This does not preclude the use of casino
67 game themes or titles on such tickets or signage or advertising
68 displays on the machines;
69 b. A machine that displays an image of the ticket on a
70 video screen may be used to dispense predetermined electronic
71 instant lottery tickets, provided the player must touch the
72 image of the ticket on the screen to reveal the outcome of the
73 ticket. The machine may not permit a player to redeem winnings
74 and may not make use of video reels or mechanical reels or
75 simulate the play of any casino game. A retailer who utilizes
76 such machines must be paid the same amount as the retailer would
77 be paid for the sale of paper instant lottery tickets. However,
78 a machine may not be installed at any licensed pari-mutuel
79 facility; and
80 c. A machine may be used to dispense a paper lottery ticket
81 with numbers selected by the player or randomly by the machine.
82 The machine may not reveal the winning numbers to the player.
83 The winning numbers must be selected at a subsequent time and
84 different location through a drawing by the Florida Lottery. The
85 machine, or any machine or device linked to the machine, may not
86 include or make use of video reels or mechanical reels or other
87 video depictions of slot machine or casino-game themes or titles
88 for game play. The machine may not be used to redeem a winning
89 ticket. These requirements do not preclude the use of casino
90 game themes or titles for signage or advertising on the machine.
91 Section 2. Paragraphs (a) and (h) of subsection (2) and
92 subsections (4) and (6) of section 24.111, Florida Statutes, are
93 amended to read:
94 24.111 Vendors; disclosure and contract requirements.—
95 (2) The department shall investigate the financial
96 responsibility, security, and integrity of each vendor with
97 which it intends to negotiate a contract for major procurement.
98 Such investigation may include an investigation of the financial
99 responsibility, security, and integrity of any or all persons
100 whose names and addresses are required to be disclosed pursuant
101 to paragraph (a). Any person who submits a bid, proposal, or
102 offer as part of a major procurement must, at the time of
103 submitting such bid, proposal, or offer, provide the following:
104 (a) A disclosure of the vendor’s name and address and, as
105 applicable, the name and address and any additional disclosures
106 necessary for an investigation of the financial responsibility,
107 security, and integrity of the following:
108 1. If the vendor is a corporation, the officers, directors,
109 and each stockholder in such corporation; except that, in the
110 case of owners of equity securities of a publicly traded
111 corporation, only the names and addresses of those known to the
112 corporation to own beneficially 5 percent or more of such
113 securities need be disclosed.
114 2. If the vendor is a trust, the trustee and all persons
115 entitled to receive income or benefit from the trust.
116 3. If the vendor is an association, the members, officers,
117 and directors.
118 4. If the vendor is a partnership or joint venture, all of
119 the general partners, limited partners, or joint venturers.
120 5. If the vendor is a limited liability company, each
121 officer, director, member, manager, and managing member of the
122 company.
123
124 If the vendor subcontracts any substantial portion of the work
125 to be performed to a subcontractor, the vendor shall disclose
126 all of the information required by this paragraph for the
127 subcontractor as if the subcontractor were itself a vendor.
128 (h) The department may shall lease all instant ticket
129 vending machines.
130
131 The department shall not contract with any vendor who fails to
132 make the disclosures required by this subsection, and any
133 contract with a vendor who has failed to make the required
134 disclosures shall be unenforceable. Any contract with any vendor
135 who does not comply with such requirements for periodically
136 updating such disclosures during the tenure of such contract as
137 may be specified in such contract may be terminated by the
138 department. This subsection shall be construed broadly and
139 liberally to achieve the ends of full disclosure of all
140 information necessary to allow for a full and complete
141 evaluation by the department of the competence, integrity,
142 background, and character of vendors for major procurements.
143 (4) No contract for a major procurement with any vendor
144 shall be entered into if that vendor, or any of the vendor’s
145 officers, directors, trustees, partners, managing members, or
146 joint venturers whose names and addresses are required to be
147 disclosed pursuant to paragraph (2)(a), has been convicted of,
148 or entered a plea of guilty or nolo contendere to, a felony
149 committed in the preceding 10 years, regardless of adjudication,
150 unless the department determines that:
151 (a) The vendor or such individual has been pardoned or the
152 vendor’s or such individual’s civil rights have been restored;
153 (b) Subsequent to such conviction or entry of plea the
154 vendor or such individual has engaged in the kind of law-abiding
155 commerce and good citizenship that would reflect well upon the
156 integrity of the lottery; or
157 (c) If the vendor is not an individual, such vendor has
158 terminated its relationship with the individual whose actions
159 directly contributed to the vendor’s conviction or entry of
160 plea.
161 (6) Every contract in excess of $25,000 entered into by the
162 department pursuant to this section shall contain a provision
163 for payment of liquidated damages to the department for any
164 breach of contract by the vendor. The department may require a
165 liquidated damages provision in any contract if the department
166 deems it necessary to protect the state’s financial interest.
167 Section 3. Subsection (1) of section 24.113, Florida
168 Statutes, is amended to read:
169 24.113 Minority participation.—
170 (1) It is the intent of the Legislature that the department
171 encourage participation by minority business enterprises as
172 defined in s. 288.703. Accordingly, 15 percent of the retailers
173 shall be minority business enterprises as defined in s.
174 288.703(2); however, no more than 35 percent of such retailers
175 shall be owned by the same type of minority person, as defined
176 in s. 288.703(3). The department is encouraged to meet the
177 minority business enterprise procurement goals set forth in s.
178 287.09451 in the procurement of commodities, contractual
179 services, construction, and architectural and engineering
180 services. This section shall not preclude or prohibit a minority
181 person from competing for any other retailing or vending
182 agreement awarded by the department.
183 Section 4. Section 24.114, Florida Statutes, is amended to
184 read:
185 24.114 Bank deposits and control of lottery transactions.—
186 (1)(a) All moneys received by each retailer from the
187 operation of the state lottery, including, but not limited to,
188 all ticket sales, interest, gifts, and donations, less the
189 amount retained as compensation for the sale of the tickets and
190 the amount paid out as prizes, shall be remitted to the
191 department or deposited in a qualified public depository, as
192 defined in s. 280.02, as directed by the department.
193 (b) The department shall have the responsibility for all
194 administrative functions related to the receipt of funds. The
195 department may also require:
196 1. Each retailer to file with the department reports of the
197 retailer’s receipts and transactions in the sale of lottery
198 tickets in such form and containing such information as the
199 department may require.
200 2. The department may require Any person, including a
201 qualified public depository, to perform any function, activity,
202 or service in connection with the operation of the lottery as it
203 may deem advisable pursuant to this act and rules of the
204 department, and such functions, activities, or services shall
205 constitute lawful functions, activities, and services of such
206 person.
207 3.(2) The department may require Retailers to establish
208 separate electronic funds transfer accounts for the purpose of
209 receiving moneys from ticket sales, making payments to the
210 department, and receiving payments from the department.
211 (2)(3) Each retailer is liable to the department for any
212 and all tickets accepted or generated by any employee or
213 representative of that retailer, and the tickets shall be deemed
214 to have been purchased by the retailer unless returned to the
215 department within the time and in the manner prescribed by the
216 department.
217 (3) All moneys received by retailers from the sale of
218 lottery tickets, less the amount retained as compensation for
219 the sale of tickets and the amount paid out as prizes by the
220 retailer, shall be held in trust prior to delivery to the
221 department or electronic transfer to the Operating Trust Fund.
222 (4) A retailer who fails to remit funds to the department
223 as required commits a misdemeanor of the first degree,
224 punishable as provided in s. 775.082 or s. 775.083.
225 Section 5. This act shall take effect July 1, 2010.