Florida Senate - 2026                                     SB 530
       
       
        
       By Senator Simon
       
       
       
       
       
       3-00463C-26                                            2026530__
    1                        A bill to be entitled                      
    2         An act relating to state lotteries; amending s.
    3         24.103, F.S.; defining the term “ball machine”;
    4         revising the definitions of the terms “major
    5         procurement” and “retailer”; amending s. 24.105, F.S.;
    6         revising the powers and duties of the Department of
    7         the Lottery; amending s. 24.108, F.S.; revising the
    8         schedule for the department to have a certain report
    9         produced and submitted to the Governor and the
   10         Legislature; amending s. 24.111, F.S.; revising the
   11         information required to be provided to the department
   12         by persons who submit a bid, a proposal, or an offer
   13         to negotiate a contract for major procurement;
   14         amending s. 24.112, F.S.; revising the bond amount a
   15         retailer may be required to post for the period within
   16         which the retailer is required to remit lottery funds
   17         to the department; revising certain requirements
   18         relating to lottery vending machines; amending s.
   19         24.116, F.S.; authorizing the division’s sworn law
   20         enforcement officers to purchase and present lottery
   21         tickets to a lottery retailer to claim a prize under
   22         certain circumstances; amending s. 24.118, F.S.;
   23         revising certain prohibitions and penalties relating
   24         to presenting a counterfeit or altered state lottery
   25         ticket; prohibiting certain false claims relating to
   26         state lottery tickets; prohibiting a lottery retailer
   27         or an employee thereof from using such position to
   28         knowingly facilitate, participate in, or otherwise
   29         assist in the theft of a lottery ticket from a retail
   30         establishment, patron, or customer; providing criminal
   31         penalties; defining the terms “patron” and “customer”;
   32         providing an effective date.
   33          
   34  Be It Enacted by the Legislature of the State of Florida:
   35  
   36         Section 1. Present subsections (1) through (6) of section
   37  24.103, Florida Statutes, are redesignated as subsections (2)
   38  through (7), respectively, a new subsection (1) is added to that
   39  section, and present subsections (2) and (4) of that section are
   40  amended, to read:
   41         24.103 Definitions.—As used in this act:
   42         (1) “Ball machine” means a device that mechanically mixes a
   43  set of numbered balls and then randomly draws from that mix to
   44  determine the winning numbers for a specific game.
   45         (3)(2) “Major procurement” means a procurement for a
   46  contract for the printing of tickets for use in any lottery
   47  game, consultation services for the startup of the lottery, any
   48  goods or services involving the official recording for lottery
   49  game play purposes of a player’s selections in any lottery game
   50  involving player selections, any goods or services involving the
   51  receiving of a player’s selection directly from a player in any
   52  lottery game involving player selections, any goods or services
   53  involving the drawing, determination, or generation of winners
   54  in any lottery game, the security report services provided for
   55  in this act, or any goods and services relating to marketing and
   56  promotion which exceed a value of $25,000.
   57         (5)(4) “Retailer” means the department or a person who
   58  sells lottery tickets on behalf of the department pursuant to a
   59  contract.
   60         Section 2. Present paragraphs (i) and (j) of subsection (9)
   61  of section 24.105, Florida Statutes, are redesignated as
   62  paragraphs (j) and (k), respectively, a new paragraph (i) is
   63  added to that subsection, and paragraphs (a) and (d) of
   64  subsection (9) and subsection (17) of that section are amended,
   65  to read:
   66         24.105 Powers and duties of department.—The department
   67  shall:
   68         (9) Adopt rules governing the establishment and operation
   69  of the state lottery, including:
   70         (a) The type of lottery games to be conducted, except that:
   71         1. The No name of an elected official may not shall appear
   72  on the ticket or play slip of any lottery game or on any prize
   73  or on any instrument used for the payment of prizes, unless such
   74  prize is in the form of a state warrant.
   75         2. No Coins or currency may not shall be dispensed from any
   76  electronic computer terminal or device used in any lottery game.
   77         3. Other than as specifically provided in s. 24.112, a no
   78  terminal or device may not be used for any lottery game which
   79  may be operated solely by the player without the assistance of
   80  the retailer.
   81         (d) The method of selecting winning tickets. However, if a
   82  lottery game involves the use of a ball machine to conduct a
   83  drawing, the drawing must shall be public and witnessed by an
   84  accountant employed by an independent certified public
   85  accounting firm. The department shall inspect the equipment used
   86  in the drawing shall be inspected before and after the drawing.
   87         (i) The acceptable forms of payment for ticket purchases.
   88         (17) Have the authority to Enter into agreements with other
   89  states for the operation and promotion of a multistate lottery
   90  if such agreements are in the best interest of the state
   91  lottery. The authority conferred by this subsection is not
   92  effective until 1 year after the first day of lottery ticket
   93  sales.
   94         Section 3. Subsections (6) and (7) of section 24.108,
   95  Florida Statutes, are amended to read:
   96         24.108 Division of Security; duties; security report.—
   97         (6) The division shall monitor ticket validation and
   98  lottery drawings where ball machines are used to select winning
   99  numbers.
  100         (7)(a) By July 1, 2027, and once every 2 years thereafter
  101  After the first full year of sales of tickets to the public, or
  102  sooner if the secretary deems necessary, the department shall
  103  engage an independent firm experienced in security procedures,
  104  including, but not limited to, computer security and systems
  105  security, to conduct a comprehensive study and evaluation of all
  106  aspects of security in the operation of the department.
  107         (b) The portion of the security report containing the
  108  overall evaluation of the department in terms of each aspect of
  109  security must shall be presented to the Governor, the President
  110  of the Senate, and the Speaker of the House of Representatives.
  111  The portion of the security report containing specific
  112  recommendations is shall be confidential and must shall be
  113  presented only to the secretary, the Governor, and the Auditor
  114  General; however, upon certification that such information is
  115  necessary for the purpose of effecting legislative changes, such
  116  information must shall be disclosed to the President of the
  117  Senate and the Speaker of the House of Representatives, who may
  118  disclose such information to members of the Legislature and
  119  legislative staff as necessary to effect such purpose. However,
  120  any person who receives a copy of such information or other
  121  information which is confidential pursuant to this act or rule
  122  of the department shall maintain its confidentiality. The
  123  confidential portion of the report is exempt from the provisions
  124  of s. 119.07(1) and s. 24(a), Art. I of the State Constitution.
  125         (c) Thereafter, similar studies of security shall be
  126  conducted as the department deems appropriate but at least once
  127  every 2 years.
  128         Section 4. Subsection (2) of section 24.111, Florida
  129  Statutes, is amended to read:
  130         24.111 Vendors; disclosure and contract requirements.—
  131         (2) The department shall investigate the financial
  132  responsibility, security, and integrity of each vendor with
  133  which it intends to negotiate a contract for major procurement.
  134  Such investigation may include an investigation of the financial
  135  responsibility, security, and integrity of any or all persons
  136  whose names and addresses are required to be disclosed pursuant
  137  to paragraph (a). Any person who submits a bid, a proposal, or
  138  an offer as part of a major procurement must, at the time of
  139  submitting such bid, proposal, or offer, provide the following:
  140         (a) A disclosure of the vendor’s name and address and, as
  141  applicable, the name and address and any additional disclosures
  142  necessary for an investigation of the financial responsibility,
  143  security, and integrity of the following:
  144         1. If the vendor is a corporation, the officers, directors,
  145  and each stockholder in such corporation; except that, in the
  146  case of owners of equity securities of a publicly traded
  147  corporation, only the names and addresses of those known to the
  148  corporation to own beneficially 5 percent or more of such
  149  securities need be disclosed.
  150         2. If the vendor is a trust, the trustee and all persons
  151  entitled to receive income or benefit from the trust.
  152         3. If the vendor is an association, the members, officers,
  153  and directors.
  154         4. If the vendor is a partnership or joint venture, all of
  155  the general partners, limited partners, or joint venturers.
  156  
  157  If the vendor subcontracts any substantial portion of the work
  158  to be performed to a subcontractor, the vendor must shall
  159  disclose all of the information required by this paragraph for
  160  the subcontractor as if the subcontractor were itself a vendor.
  161         (b) A disclosure of all the states and jurisdictions in
  162  which the vendor does business and of the nature of that
  163  business for each such state or jurisdiction.
  164         (c) A disclosure of all the states and jurisdictions in
  165  which the vendor has contracts to supply gaming goods or
  166  services, including, but not limited to, lottery goods and
  167  services, and of the nature of the goods or services involved
  168  for each such state or jurisdiction.
  169         (d) A disclosure of all the states and jurisdictions in
  170  which the vendor has applied for, has sought renewal of, has
  171  received, has been denied, has pending, or has had revoked a
  172  gaming license or contract of any kind and of the disposition of
  173  such in each such state or jurisdiction. If any gaming license
  174  or contract has been revoked or has not been renewed or any
  175  gaming license or contract application has been either denied or
  176  is pending and has remained pending for more than 6 months, all
  177  of the facts and circumstances underlying this failure to
  178  receive such a license must be disclosed.
  179         (e) A disclosure of the details of any conviction or
  180  judgment of a state or federal court of the vendor of any felony
  181  or any other criminal offense other than a traffic violation.
  182         (f) A disclosure of the details of any bankruptcy,
  183  insolvency, reorganization, or any pending litigation of the
  184  vendor.
  185         (g) Such additional disclosures and information as the
  186  department may determine to be appropriate for the procurement
  187  involved.
  188         (h) The department shall lease all vending machines that
  189  dispense online lottery tickets, instant lottery tickets, or
  190  both online and instant lottery tickets.
  191         (i) The department will require a performance bond for the
  192  duration of the contract.
  193  
  194  The department may shall not contract with any vendor who fails
  195  to make the disclosures required by this subsection, and any
  196  contract with a vendor who has failed to make the required
  197  disclosures is shall be unenforceable. Any contract with any
  198  vendor who does not comply with such requirements for
  199  periodically updating such disclosures during the tenure of such
  200  contract as may be specified in such contract may be terminated
  201  by the department. This subsection must shall be construed
  202  broadly and liberally to achieve the ends of full disclosure of
  203  all information necessary to allow for a full and complete
  204  evaluation by the department of the competence, integrity,
  205  background, and character of vendors for major procurements.
  206         Section 5. Subsection (9) and paragraph (a) of subsection
  207  (15) of section 24.112, Florida Statutes, are amended to read:
  208         24.112 Retailers of lottery tickets; authorization of
  209  vending machines to dispense lottery tickets.—
  210         (9)(a) The department may require every retailer to post an
  211  appropriate bond as determined by the department, using an
  212  insurance company acceptable to the department, in an amount not
  213  to exceed three times twice the average lottery ticket sales of
  214  the retailer for the period within which the retailer is
  215  required to remit lottery funds to the department. For the first
  216  90 days of sales of a new retailer, the amount of the bond may
  217  not exceed three times twice the average estimated lottery
  218  ticket sales for the period within which the retailer is
  219  required to remit lottery funds to the department. This
  220  paragraph does shall not apply to lottery tickets which are
  221  prepaid by the retailer.
  222         (b) In lieu of such bond, the department may do any of the
  223  following:
  224         1. Purchase blanket bonds covering all or selected
  225  retailers.
  226         2.or may Allow a retailer to deposit and maintain with the
  227  Chief Financial Officer securities that are interest bearing or
  228  accruing and that, with the exception of those specified in sub
  229  subparagraphs a. and b. subparagraphs 1. and 2., are rated in
  230  one of the four highest classifications by an established
  231  nationally recognized investment rating service. Securities
  232  eligible under this subparagraph are paragraph shall be limited
  233  to:
  234         a.1. Certificates of deposit issued by solvent banks or
  235  savings associations organized and existing under the laws of
  236  this state or under the laws of the United States and having
  237  their principal place of business in this state.
  238         b.2. United States bonds, notes, and bills for which the
  239  full faith and credit of the government of the United States is
  240  pledged for the payment of principal and interest.
  241         c.3. General obligation bonds and notes of any political
  242  subdivision of the state.
  243         d.4. Corporate bonds of any corporation that is not an
  244  affiliate or subsidiary of the depositor.
  245         3. Allow a retailer to remit funds to the department for
  246  deposit in an interest-bearing bank account held by the
  247  department.
  248  
  249  Such securities must shall be held in trust and shall have at
  250  all times a market value at least equal to an amount required by
  251  the department.
  252         (15) A vending machine may be used to dispense online
  253  lottery tickets, instant lottery tickets, or both online and
  254  instant lottery tickets.
  255         (a) The vending machine must:
  256         1. Dispense a lottery ticket following receipt of payment
  257  from after a purchaser via inserts a coin, or currency, or a
  258  noncredit, cashless payment method authorized by the department;
  259  in the machine.
  260         2. Be capable of being electronically deactivated for a
  261  period of 5 minutes or more; and.
  262         3. Be designed to prevent its use for any purpose other
  263  than dispensing a lottery ticket.
  264         Section 6. Subsection (2) of section 24.116, Florida
  265  Statutes, is amended to read:
  266         24.116 Unlawful purchase of lottery tickets; penalty.—
  267         (2) An No officer or employee of the department or any
  268  relative living in the same household with such officer or
  269  employee may not purchase a lottery ticket. Sworn law
  270  enforcement officers employed by the Division of Security may
  271  purchase lottery tickets and present lottery tickets to a
  272  lottery retailer to claim a prize when such purchase or
  273  presentation of lottery tickets is necessary for the performance
  274  of the officers’ official duties, including, but not limited to,
  275  compliance operations and investigations.
  276         Section 7. Subsection (3) of section 24.118, Florida
  277  Statutes, is amended, and subsections (5) and (6) are added to
  278  that section, to read:
  279         24.118 Other prohibited acts; penalties.—
  280         (3) COUNTERFEIT OR ALTERED TICKETS.—A Any person who:
  281         (a) Knowingly presents a counterfeit or altered state
  282  lottery ticket;
  283         (b) Knowingly transfers a counterfeit or altered state
  284  lottery ticket to another to present for payment; or
  285         (c) With intent to defraud, falsely makes, alters, forges,
  286  passes, or counterfeits a state lottery ticket; or
  287         (d) Files with the department a claim for payment based
  288  upon facts alleged by the claimant which facts are untrue and
  289  known by the claimant to be untrue when the claim is made;
  290  
  291  commits is guilty of a felony of the third degree, punishable as
  292  provided in s. 775.082, s. 775.083, or s. 775.084.
  293         (5)FALSE CLAIM.A person may not, when presenting or
  294  causing to be presented any claim for payment or approval to an
  295  officer or employee of the department or to a lottery retailer,
  296  knowingly and willfully:
  297         (a) Falsify or conceal a material fact;
  298         (b) Make any false, fictitious, or fraudulent statement or
  299  representation relating to a material fact; or
  300         (c) Make or use any false document, knowing the document
  301  contains a false, fictitious, or fraudulent statement or entry
  302  relating to a material fact.
  303  
  304  A person who violates this subsection commits a felony of the
  305  third degree, punishable as provided in s. 775.082, s. 775.083,
  306  or s. 775.084.
  307         (6) THEFT OF LOTTERY TICKET BY RETAILER.
  308         (a) A lottery retailer or an employee thereof may not use
  309  his or her position to knowingly facilitate, participate in, or
  310  otherwise assist in the theft of any lottery ticket from the
  311  retail establishment or from a patron or customer of the retail
  312  establishment.
  313         (b) A person who violates paragraph (a) commits a felony of
  314  the third degree, punishable as provided in s. 775.082, s.
  315  775.083, or s. 775.084.
  316         (c) As used in this subsection, the terms “patron” and
  317  “customer” include a sworn law enforcement officer of the
  318  Division of Security presenting a lottery ticket to a lottery
  319  retailer to claim a prize during the performance of the law
  320  enforcement officer’s official duties.
  321         Section 8. This act shall take effect July 1, 2026.