Florida Senate - 2016                              CS for SB 402
       
       
        
       By the Committee on Fiscal Policy; and Senators Richter, Diaz de
       la Portilla, and Braynon
       
       
       
       
       594-01807-16                                           2016402c1
    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; providing requirements for
    9         the rules; amending s. 24.112, F.S.; authorizing the
   10         department, a retailer operating from one or more
   11         locations, or a vendor approved by the department to
   12         use a point-of-sale terminal to sell a lottery ticket
   13         or game; requiring a point-of-sale terminal to perform
   14         certain functions; specifying that the point-of-sale
   15         terminal may not reveal winning numbers; prohibiting a
   16         point-of-sale terminal from including or making use of
   17         video reels or mechanical reels or other video
   18         depictions of slot machine or casino game themes or
   19         titles for game play; prohibiting a point-of-sale
   20         terminal from being used to redeem a winning ticket;
   21         providing an effective date.
   22          
   23  Be It Enacted by the Legislature of the State of Florida:
   24  
   25         Section 1. Section 24.103, Florida Statutes, is reordered
   26  and amended to read:
   27         24.103 Definitions.—As used in this act, the term:
   28         (1) “Department” means the Department of the Lottery.
   29         (6)(2) “Secretary” means the secretary of the department.
   30         (3) “Person” means any individual, firm, association, joint
   31  adventure, partnership, estate, trust, syndicate, fiduciary,
   32  corporation, or other group or combination and includes an shall
   33  include any agency or political subdivision of the state.
   34         (4) “Point-of-sale terminal” means an electronic device
   35  used to process credit card, debit card, or other similar charge
   36  card payments at retail locations which is supported by networks
   37  that enable verification, payment, transfer of funds, and
   38  logging of transactions.
   39         (2)(4) “Major procurement” means a procurement for a
   40  contract for the printing of tickets for use in any lottery
   41  game, consultation services for the startup of the lottery, any
   42  goods or services involving the official recording for lottery
   43  game play purposes of a player’s selections in any lottery game
   44  involving player selections, any goods or services involving the
   45  receiving of a player’s selection directly from a player in any
   46  lottery game involving player selections, any goods or services
   47  involving the drawing, determination, or generation of winners
   48  in any lottery game, the security report services provided for
   49  in this act, or any goods and services relating to marketing and
   50  promotion which exceed a value of $25,000.
   51         (5) “Retailer” means a person who sells lottery tickets on
   52  behalf of the department pursuant to a contract.
   53         (7)(6) “Vendor” means a person who provides or proposes to
   54  provide goods or services to the department, but does not
   55  include an employee of the department, a retailer, or a state
   56  agency.
   57         Section 2. Present subsections (19) and (20) of section
   58  24.105, Florida Statutes, are redesignated as subsections (20)
   59  and (21), respectively, and a new subsection (19) is added to
   60  that section, to read:
   61         24.105 Powers and duties of department.—The department
   62  shall:
   63         (19) Have the authority to create a program that allows a
   64  person who is at least 18 years of age to purchase a lottery
   65  ticket or game at a point-of-sale terminal. The department may
   66  adopt rules to administer the program. Such rules shall include,
   67  but are not limited to, the following:
   68         (a) Limiting the dollar amount of lottery tickets or games
   69  that a person may purchase at point-of-sale terminals;
   70         (b) Creating a process to enable a customer to restrict or
   71  prevent his or her own access to lottery tickets or games; and
   72         (c) Ensuring that the program is administered in a manner
   73  that does not breach the exclusivity provisions of any Indian
   74  gaming compact to which this state is a party.
   75         Section 3. Section 24.112, Florida Statutes, is amended to
   76  read:
   77         24.112 Retailers of lottery tickets; authorization of
   78  vending machines; point-of-sale terminals to dispense lottery
   79  tickets.—
   80         (1) The department shall promulgate rules specifying the
   81  terms and conditions for contracting with retailers who will
   82  best serve the public interest and promote the sale of lottery
   83  tickets.
   84         (2) In the selection of retailers, the department shall
   85  consider factors such as financial responsibility, integrity,
   86  reputation, accessibility of the place of business or activity
   87  to the public, security of the premises, the sufficiency of
   88  existing retailers to serve the public convenience, and the
   89  projected volume of the sales for the lottery game involved. In
   90  the consideration of these factors, the department may require
   91  the information it deems necessary of any person applying for
   92  authority to act as a retailer. However, the department may not
   93  establish a limitation upon the number of retailers and shall
   94  make every effort to allow small business participation as
   95  retailers. It is the intent of the Legislature that retailer
   96  selections be based on business considerations and the public
   97  convenience and that retailers be selected without regard to
   98  political affiliation.
   99         (3) The department may shall not contract with any person
  100  as a retailer who:
  101         (a) Is less than 18 years of age.
  102         (b) Is engaged exclusively in the business of selling
  103  lottery tickets; however, this paragraph may shall not preclude
  104  the department from selling lottery tickets.
  105         (c) Has been convicted of, or entered a plea of guilty or
  106  nolo contendere to, a felony committed in the preceding 10
  107  years, regardless of adjudication, unless the department
  108  determines that:
  109         1. The person has been pardoned or the person’s civil
  110  rights have been restored;
  111         2. Subsequent to such conviction or entry of plea the
  112  person has engaged in the kind of law-abiding commerce and good
  113  citizenship that would reflect well upon the integrity of the
  114  lottery; or
  115         3. If the person is a firm, association, partnership,
  116  trust, corporation, or other entity, the person has terminated
  117  its relationship with the individual whose actions directly
  118  contributed to the person’s conviction or entry of plea.
  119         (4) The department shall issue a certificate of authority
  120  to each person with whom it contracts as a retailer for purposes
  121  of display pursuant to subsection (6). The issuance of the
  122  certificate may shall not confer upon the retailer any right
  123  apart from that specifically granted in the contract. The
  124  authority to act as a retailer may shall not be assignable or
  125  transferable.
  126         (5) A Any contract executed by the department pursuant to
  127  this section shall specify the reasons for any suspension or
  128  termination of the contract by the department, including, but
  129  not limited to:
  130         (a) Commission of a violation of this act or rule adopted
  131  pursuant thereto.
  132         (b) Failure to accurately account for lottery tickets,
  133  revenues, or prizes as required by the department.
  134         (c) Commission of any fraud, deceit, or misrepresentation.
  135         (d) Insufficient sale of tickets.
  136         (e) Conduct prejudicial to public confidence in the
  137  lottery.
  138         (f) Any material change in any matter considered by the
  139  department in executing the contract with the retailer.
  140         (6) Each Every retailer shall post and keep conspicuously
  141  displayed in a location on the premises accessible to the public
  142  its certificate of authority and, with respect to each game, a
  143  statement supplied by the department of the estimated odds of
  144  winning a some prize for the game.
  145         (7) A No contract with a retailer may not shall authorize
  146  the sale of lottery tickets at more than one location, and a
  147  retailer may sell lottery tickets only at the location stated on
  148  the certificate of authority.
  149         (8) With respect to any retailer whose rental payments for
  150  premises are contractually computed, in whole or in part, on the
  151  basis of a percentage of retail sales, and where such
  152  computation of retail sales is not explicitly defined to include
  153  sales of tickets in a state-operated lottery, the compensation
  154  received by the retailer from the department shall be deemed to
  155  be the amount of the retail sale for the purposes of such
  156  contractual compensation.
  157         (9)(a) The department may require each every retailer to
  158  post an appropriate bond as determined by the department, using
  159  an insurance company acceptable to the department, in an amount
  160  not to exceed twice the average lottery ticket sales of the
  161  retailer for the period within which the retailer is required to
  162  remit lottery funds to the department. For the first 90 days of
  163  sales of a new retailer, the amount of the bond may not exceed
  164  twice the average estimated lottery ticket sales for the period
  165  within which the retailer is required to remit lottery funds to
  166  the department. This paragraph does shall not apply to lottery
  167  tickets that which are prepaid by the retailer.
  168         (b) In lieu of such bond, the department may purchase
  169  blanket bonds covering all or selected retailers or may allow a
  170  retailer to deposit and maintain with the Chief Financial
  171  Officer securities that are interest bearing or accruing and
  172  that, with the exception of those specified in subparagraphs 1.
  173  and 2., are rated in one of the four highest classifications by
  174  an established nationally recognized investment rating service.
  175  Securities eligible under this paragraph shall be limited to:
  176         1. Certificates of deposit issued by solvent banks or
  177  savings associations organized and existing under the laws of
  178  this state or under the laws of the United States and having
  179  their principal place of business in this state.
  180         2. United States bonds, notes, and bills for which the full
  181  faith and credit of the government of the United States is
  182  pledged for the payment of principal and interest.
  183         3. General obligation bonds and notes of any political
  184  subdivision of the state.
  185         4. Corporate bonds of any corporation that is not an
  186  affiliate or subsidiary of the depositor.
  187  
  188  Such securities shall be held in trust and shall have at all
  189  times a market value at least equal to an amount required by the
  190  department.
  191         (10) Each Every contract entered into by the department
  192  pursuant to this section shall contain a provision for payment
  193  of liquidated damages to the department for any breach of
  194  contract by the retailer.
  195         (11) The department shall establish procedures by which
  196  each retailer shall account for all tickets sold by the retailer
  197  and account for all funds received by the retailer from such
  198  sales. The contract with each retailer shall include provisions
  199  relating to the sale of tickets, payment of moneys to the
  200  department, reports, service charges, and interest and
  201  penalties, if necessary, as the department shall deem
  202  appropriate.
  203         (12) No Payment by a retailer to the department for tickets
  204  may not shall be in cash. All such payments shall be in the form
  205  of a check, bank draft, electronic fund transfer, or other
  206  financial instrument authorized by the secretary.
  207         (13) Each retailer shall provide accessibility for disabled
  208  persons on habitable grade levels. This subsection does not
  209  apply to a retail location that which has an entrance door
  210  threshold more than 12 inches above ground level. As used in
  211  herein and for purposes of this subsection only, the term
  212  “accessibility for disabled persons on habitable grade levels”
  213  means that retailers shall provide ramps, platforms, aisles and
  214  pathway widths, turnaround areas, and parking spaces to the
  215  extent these are required for the retailer’s premises by the
  216  particular jurisdiction where the retailer is located.
  217  Accessibility shall be required to only one point of sale of
  218  lottery tickets for each lottery retailer location. The
  219  requirements of this subsection shall be deemed to have been met
  220  if, in lieu of the foregoing, disabled persons can purchase
  221  tickets from the retail location by means of a drive-up window,
  222  provided the hours of access at the drive-up window are not less
  223  than those provided at any other entrance at that lottery
  224  retailer location. Inspections for compliance with this
  225  subsection shall be performed by those enforcement authorities
  226  responsible for enforcement pursuant to s. 553.80 in accordance
  227  with procedures established by those authorities. Those
  228  enforcement authorities shall provide to the Department of the
  229  Lottery a certification of noncompliance for any lottery
  230  retailer not meeting such requirements.
  231         (14) The secretary may, after filing with the Department of
  232  State his or her manual signature certified by the secretary
  233  under oath, execute or cause to be executed contracts between
  234  the department and retailers by means of engraving, imprinting,
  235  stamping, or other facsimile signature.
  236         (15) A vending machine may be used to dispense online
  237  lottery tickets, instant lottery tickets, or both online and
  238  instant lottery tickets.
  239         (a) The vending machine must:
  240         1. Dispense a lottery ticket after a purchaser inserts a
  241  coin or currency in the machine.
  242         2. Be capable of being electronically deactivated for a
  243  period of 5 minutes or more.
  244         3. Be designed to prevent its use for any purpose other
  245  than dispensing a lottery ticket.
  246         (b) In order to be authorized to use a vending machine to
  247  dispense lottery tickets, a retailer must:
  248         1. Locate the vending machine in the retailer’s direct line
  249  of sight to ensure that purchases are only made by persons at
  250  least 18 years of age.
  251         2. Ensure that at least one employee is on duty when the
  252  vending machine is available for use. However, if the retailer
  253  has previously violated s. 24.1055, at least two employees must
  254  be on duty when the vending machine is available for use.
  255         (c) A vending machine that dispenses a lottery ticket may
  256  dispense change to a purchaser but may not be used to redeem any
  257  type of winning lottery ticket.
  258         (d) The vending machine, or any machine or device linked to
  259  the vending machine, may not include or make use of video reels
  260  or mechanical reels or other video depictions of slot machine or
  261  casino game themes or titles for game play. This does not
  262  preclude the use of casino game themes or titles on such tickets
  263  or signage or advertising displays on the machines.
  264         (16) The department, a retailer operating from one or more
  265  locations, or a vendor approved by the department may use a
  266  point-of-sale terminal to facilitate the sale of a lottery
  267  ticket or game.
  268         (a) A point-of-sale terminal must:
  269         1. Dispense a paper lottery ticket with numbers selected by
  270  the purchaser or selected randomly by the machine after the
  271  purchaser uses a credit card, debit card, or other similar
  272  charge card issued by a bank, savings association, credit union,
  273  or charge card company or issued by a retailer pursuant to part
  274  II of chapter 520 for payment;
  275         2. Recognize a valid driver license or use another age
  276  verification process approved by the department to ensure that
  277  only persons at least 18 years of age may purchase a lottery
  278  ticket or game;
  279         3.Process a lottery transaction through a platform that is
  280  certified or otherwise approved by the department; and
  281         4. Be in compliance with all applicable department
  282  requirements related to the lottery ticket or game offered for
  283  sale.
  284         (b) A point-of-sale terminal does not reveal winning
  285  numbers, which are selected at a subsequent time and different
  286  location through a drawing by the state lottery.
  287         (c) A point-of-sale terminal, or any machine or device
  288  linked to the point-of-sale terminal, may not include or make
  289  use of video reels or mechanical reels or other video depictions
  290  of slot machine or casino game themes or titles for game play.
  291  This does not preclude the use of casino game themes or titles
  292  on a lottery ticket or game or on the signage or advertising
  293  displays on the terminal.
  294         (d)A point-of-sale terminal may not be used to redeem a
  295  winning ticket.
  296         Section 4. This act shall take effect upon becoming a law.