CS for CS for SB 674 First Engrossed
2010674e1
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; providing
5 for discontinuance of machine operations; providing
6 contract requirements; amending s. 24.111, F.S.;
7 adding limited liability companies to the list of
8 potential vendors that the Department of the Lottery
9 must investigate; providing that the Department of the
10 Lottery may lease all instant ticket vending machines;
11 prohibiting the department from entering into a
12 contract for a major procurement if a managing member
13 of the vendor has been convicted of a felony; removing
14 a duplicative provision; amending s. 24.113, F.S.;
15 removing a provision limiting the percentage of the
16 same type of minority retailer that the Department of
17 the Lottery may contract with to 35 percent; amending
18 s. 24.114, F.S.; providing a penalty for failure by a
19 retailer to remit funds as required; providing an
20 effective date.
21
22 Be It Enacted by the Legislature of the State of Florida:
23
24 Section 1. Paragraph (a) of subsection (9) of section
25 24.105, Florida Statutes, is amended to read:
26 24.105 Powers and duties of department.—The department
27 shall:
28 (9) Adopt rules governing the establishment and operation
29 of the state lottery, including:
30 (a) The type of lottery games to be conducted, except that:
31 1. No name of an elected official shall appear on the
32 ticket or play slip of any lottery game or on any prize or on
33 any instrument used for the payment of prizes, unless such prize
34 is in the form of a state warrant.
35 2. No coins or currency shall be dispensed from any
36 electronic computer terminal or device used in any lottery game.
37 3. Other than as provided in subparagraph 4., no terminal
38 or device may be used for any lottery game which may be operated
39 solely by the player without the assistance of the retailer.
40 4. Only the three types of The only player-activated
41 machines described in this subparagraph machine which may be
42 utilized is a machine which dispenses instant lottery game
43 tickets following the insertion of a coin or currency by a
44 ticket purchaser. To be authorized, a machine must: be under the
45 supervision and within the direct line of sight of the lottery
46 retailer to ensure that the machine is monitored and only
47 operated by persons at least 18 years of age and; be capable of
48 being electronically deactivated by the retailer to prohibit use
49 by persons less than 18 years of age through the use of a
50 lockout device that maintains the machine’s deactivation for a
51 period of no less than 5 minutes; and be designed to prevent its
52 use or conversion for use in any manner other than the
53 dispensing of instant lottery tickets. Authorized machines may
54 dispense change to players purchasing tickets but may not be
55 utilized for paying the holders of winning tickets of any kind.
56 At least one clerk must be on duty at the lottery retailer while
57 the machine is in operation. However, at least two clerks must
58 be on duty at any lottery location which has violated s.
59 24.1055. Not more than 10 machines may be installed at any
60 facility or location. In addition to the above requirements, the
61 following requirements must also be satisfied:
62 a. A machine may be used to dispense preprinted instant
63 lottery tickets, but the machine may not read or reveal the
64 results of the ticket or allow a player to redeem any ticket.
65 The machine, or any machine or device linked to the machine, may
66 not include or make use of video reels or mechanical reels or
67 other video depictions of slot machine or casino game themes or
68 titles for game play. This does not preclude the use of casino
69 game themes or titles on such tickets or signage or advertising
70 displays on the machines;
71 b. A machine that displays an image of the ticket on a
72 video screen may be used to dispense predetermined electronic
73 instant lottery tickets, provided the player must touch the
74 image of the ticket on the screen to reveal the outcome of the
75 ticket. The machine may not permit a player to redeem winnings
76 and may not make use of video reels or mechanical reels or
77 simulate the play of any casino game. A retailer who utilizes
78 such machines must be paid the same amount as the retailer would
79 be paid for the sale of paper instant lottery tickets. However,
80 a machine may not be installed at any licensed pari-mutuel
81 facility;
82 c. A machine may be used to dispense a paper lottery ticket
83 with numbers selected by the player or randomly by the machine.
84 The machine may not reveal the winning numbers to the player.
85 The winning numbers must be selected at a subsequent time and
86 different location through a drawing by the Florida Lottery. The
87 machine, or any machine or device linked to the machine, may not
88 include or make use of video reels or mechanical reels or other
89 video depictions of slot machine or casino-game themes or titles
90 for game play. The machine may not be used to redeem a winning
91 ticket. These requirements do not preclude the use of casino
92 game themes or titles for signage or advertising on the machine;
93 and
94 d. The department shall discontinue the operation of any
95 machines authorized under this subparagraph if such operation
96 results in cessation of payments, or payments being placed into
97 escrow, under the compact authorized under s. 285.710. All
98 contracts with retailers or vendors offering these machines
99 shall be subject to this provision.
100 Section 2. Paragraphs (a) and (h) of subsection (2) and
101 subsections (4) and (6) of section 24.111, Florida Statutes, are
102 amended to read:
103 24.111 Vendors; disclosure and contract requirements.—
104 (2) The department shall investigate the financial
105 responsibility, security, and integrity of each vendor with
106 which it intends to negotiate a contract for major procurement.
107 Such investigation may include an investigation of the financial
108 responsibility, security, and integrity of any or all persons
109 whose names and addresses are required to be disclosed pursuant
110 to paragraph (a). Any person who submits a bid, proposal, or
111 offer as part of a major procurement must, at the time of
112 submitting such bid, proposal, or offer, provide the following:
113 (a) A disclosure of the vendor’s name and address and, as
114 applicable, the name and address and any additional disclosures
115 necessary for an investigation of the financial responsibility,
116 security, and integrity of the following:
117 1. If the vendor is a corporation, the officers, directors,
118 and each stockholder in such corporation; except that, in the
119 case of owners of equity securities of a publicly traded
120 corporation, only the names and addresses of those known to the
121 corporation to own beneficially 5 percent or more of such
122 securities need be disclosed.
123 2. If the vendor is a trust, the trustee and all persons
124 entitled to receive income or benefit from the trust.
125 3. If the vendor is an association, the members, officers,
126 and directors.
127 4. If the vendor is a partnership or joint venture, all of
128 the general partners, limited partners, or joint venturers.
129 5. If the vendor is a limited liability company, each
130 officer, director, member, manager, and managing member of the
131 company.
132
133 If the vendor subcontracts any substantial portion of the work
134 to be performed to a subcontractor, the vendor shall disclose
135 all of the information required by this paragraph for the
136 subcontractor as if the subcontractor were itself a vendor.
137 (h) The department may shall lease all instant ticket
138 vending machines.
139
140 The department shall not contract with any vendor who fails to
141 make the disclosures required by this subsection, and any
142 contract with a vendor who has failed to make the required
143 disclosures shall be unenforceable. Any contract with any vendor
144 who does not comply with such requirements for periodically
145 updating such disclosures during the tenure of such contract as
146 may be specified in such contract may be terminated by the
147 department. This subsection shall be construed broadly and
148 liberally to achieve the ends of full disclosure of all
149 information necessary to allow for a full and complete
150 evaluation by the department of the competence, integrity,
151 background, and character of vendors for major procurements.
152 (4) No contract for a major procurement with any vendor
153 shall be entered into if that vendor, or any of the vendor’s
154 officers, directors, trustees, partners, managing members, or
155 joint venturers whose names and addresses are required to be
156 disclosed pursuant to paragraph (2)(a), has been convicted of,
157 or entered a plea of guilty or nolo contendere to, a felony
158 committed in the preceding 10 years, regardless of adjudication,
159 unless the department determines that:
160 (a) The vendor or such individual has been pardoned or the
161 vendor’s or such individual’s civil rights have been restored;
162 (b) Subsequent to such conviction or entry of plea the
163 vendor or such individual has engaged in the kind of law-abiding
164 commerce and good citizenship that would reflect well upon the
165 integrity of the lottery; or
166 (c) If the vendor is not an individual, such vendor has
167 terminated its relationship with the individual whose actions
168 directly contributed to the vendor’s conviction or entry of
169 plea.
170 (6) Every contract in excess of $25,000 entered into by the
171 department pursuant to this section shall contain a provision
172 for payment of liquidated damages to the department for any
173 breach of contract by the vendor. The department may require a
174 liquidated damages provision in any contract if the department
175 deems it necessary to protect the state’s financial interest.
176 Section 3. Subsection (1) of section 24.113, Florida
177 Statutes, is amended to read:
178 24.113 Minority participation.—
179 (1) It is the intent of the Legislature that the department
180 encourage participation by minority business enterprises as
181 defined in s. 288.703. Accordingly, 15 percent of the retailers
182 shall be minority business enterprises as defined in s.
183 288.703(2); however, no more than 35 percent of such retailers
184 shall be owned by the same type of minority person, as defined
185 in s. 288.703(3). The department is encouraged to meet the
186 minority business enterprise procurement goals set forth in s.
187 287.09451 in the procurement of commodities, contractual
188 services, construction, and architectural and engineering
189 services. This section shall not preclude or prohibit a minority
190 person from competing for any other retailing or vending
191 agreement awarded by the department.
192 Section 4. Section 24.114, Florida Statutes, is amended to
193 read:
194 24.114 Bank deposits and control of lottery transactions.—
195 (1)(a) All moneys received by each retailer from the
196 operation of the state lottery, including, but not limited to,
197 all ticket sales, interest, gifts, and donations, less the
198 amount retained as compensation for the sale of the tickets and
199 the amount paid out as prizes, shall be remitted to the
200 department or deposited in a qualified public depository, as
201 defined in s. 280.02, as directed by the department.
202 (b) The department shall have the responsibility for all
203 administrative functions related to the receipt of funds. The
204 department may also require:
205 1. Each retailer to file with the department reports of the
206 retailer’s receipts and transactions in the sale of lottery
207 tickets in such form and containing such information as the
208 department may require.
209 2. The department may require Any person, including a
210 qualified public depository, to perform any function, activity,
211 or service in connection with the operation of the lottery as it
212 may deem advisable pursuant to this act and rules of the
213 department, and such functions, activities, or services shall
214 constitute lawful functions, activities, and services of such
215 person.
216 3.(2) The department may require Retailers to establish
217 separate electronic funds transfer accounts for the purpose of
218 receiving moneys from ticket sales, making payments to the
219 department, and receiving payments from the department.
220 (2)(3) Each retailer is liable to the department for any
221 and all tickets accepted or generated by any employee or
222 representative of that retailer, and the tickets shall be deemed
223 to have been purchased by the retailer unless returned to the
224 department within the time and in the manner prescribed by the
225 department.
226 (3) All moneys received by retailers from the sale of
227 lottery tickets, less the amount retained as compensation for
228 the sale of tickets and the amount paid out as prizes by the
229 retailer, shall be held in trust prior to delivery to the
230 department or electronic transfer to the Operating Trust Fund.
231 (4) A retailer who fails to remit funds to the department
232 as required commits a misdemeanor of the first degree,
233 punishable as provided in s. 775.082 or s. 775.083.
234 Section 5. This act shall take effect July 1, 2010.