Florida Senate - 2026                              CS for SB 530
       
       
        
       By the Committee on Regulated Industries; and Senators Simon and
       Pizzo
       
       
       
       
       580-02243-26                                           2026530c1
    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 of Security’s
   20         sworn law enforcement officers to purchase and present
   21         lottery tickets to a lottery retailer to claim a prize
   22         under 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.  Section. 2. Paragraphs (a) and (d) of
   61  subsection (9) and subsection (17) of section 24.105, Florida
   62  Statutes, are amended to read:
   63         24.105 Powers and duties of department.—The department
   64  shall:
   65         (9) Adopt rules governing the establishment and operation
   66  of the state lottery, including:
   67         (a) The type of lottery games to be conducted, except that:
   68         1. The No name of an elected official may not shall appear
   69  on the ticket or play slip of any lottery game or on any prize
   70  or on any instrument used for the payment of prizes, unless such
   71  prize is in the form of a state warrant.
   72         2. No Coins or currency may not shall be dispensed from any
   73  electronic computer terminal or device used in any lottery game.
   74         3. Other than as specifically provided in s. 24.112, a no
   75  terminal or device may not be used for any lottery game which
   76  may be operated solely by the player without the assistance of
   77  the retailer.
   78         (d) The method of selecting winning tickets. However, if a
   79  lottery game involves the use of a ball machine to conduct a
   80  drawing, the drawing must shall be public and witnessed by an
   81  accountant employed by an independent certified public
   82  accounting firm. The department shall inspect the equipment used
   83  in the drawing shall be inspected before and after the drawing.
   84         (17) Have the authority to Enter into agreements with other
   85  states for the operation and promotion of a multistate lottery
   86  if such agreements are in the best interest of the state
   87  lottery. The authority conferred by this subsection is not
   88  effective until 1 year after the first day of lottery ticket
   89  sales.
   90         Section 3. Subsections (6) and (7) of section 24.108,
   91  Florida Statutes, are amended to read:
   92         24.108 Division of Security; duties; security report.—
   93         (6) The division shall monitor ticket validation and
   94  lottery drawings where ball machines are used to select winning
   95  numbers.
   96         (7)(a) By July 1, 2027, and once every 2 years thereafter
   97  After the first full year of sales of tickets to the public, or
   98  sooner if the secretary deems necessary, the department shall
   99  engage an independent firm experienced in security procedures,
  100  including, but not limited to, computer security and systems
  101  security, to conduct a comprehensive study and evaluation of all
  102  aspects of security in the operation of the department.
  103         (b) The portion of the security report containing the
  104  overall evaluation of the department in terms of each aspect of
  105  security must shall be presented to the Governor, the President
  106  of the Senate, and the Speaker of the House of Representatives.
  107  The portion of the security report containing specific
  108  recommendations is shall be confidential and must shall be
  109  presented only to the secretary, the Governor, and the Auditor
  110  General; however, upon certification that such information is
  111  necessary for the purpose of effecting legislative changes, such
  112  information must shall be disclosed to the President of the
  113  Senate and the Speaker of the House of Representatives, who may
  114  disclose such information to members of the Legislature and
  115  legislative staff as necessary to effect such purpose. However,
  116  any person who receives a copy of such information or other
  117  information which is confidential pursuant to this act or rule
  118  of the department shall maintain its confidentiality. The
  119  confidential portion of the report is exempt from the provisions
  120  of s. 119.07(1) and s. 24(a), Art. I of the State Constitution.
  121         (c) Thereafter, similar studies of security shall be
  122  conducted as the department deems appropriate but at least once
  123  every 2 years.
  124         Section 4. Subsection (2) of section 24.111, Florida
  125  Statutes, is amended to read:
  126         24.111 Vendors; disclosure and contract requirements.—
  127         (2) The department shall investigate the financial
  128  responsibility, security, and integrity of each vendor with
  129  which it intends to negotiate a contract for major procurement.
  130  Such investigation may include an investigation of the financial
  131  responsibility, security, and integrity of any or all persons
  132  whose names and addresses are required to be disclosed pursuant
  133  to paragraph (a). Any person who submits a bid, a proposal, or
  134  an offer as part of a major procurement must, at the time of
  135  submitting such bid, proposal, or offer, provide the following:
  136         (a) A disclosure of the vendor’s name and address and, as
  137  applicable, the name and address and any additional disclosures
  138  necessary for an investigation of the financial responsibility,
  139  security, and integrity of the following:
  140         1. If the vendor is a corporation, the officers, directors,
  141  and each stockholder in such corporation; except that, in the
  142  case of owners of equity securities of a publicly traded
  143  corporation, only the names and addresses of those known to the
  144  corporation to own beneficially 5 percent or more of such
  145  securities need be disclosed.
  146         2. If the vendor is a trust, the trustee and all persons
  147  entitled to receive income or benefit from the trust.
  148         3. If the vendor is an association, the members, officers,
  149  and directors.
  150         4. If the vendor is a partnership or joint venture, all of
  151  the general partners, limited partners, or joint venturers.
  152  
  153  If the vendor subcontracts any substantial portion of the work
  154  to be performed to a subcontractor, the vendor must shall
  155  disclose all of the information required by this paragraph for
  156  the subcontractor as if the subcontractor were itself a vendor.
  157         (b) A disclosure of all the states and jurisdictions in
  158  which the vendor does business and of the nature of that
  159  business for each such state or jurisdiction.
  160         (c) A disclosure of all the states and jurisdictions in
  161  which the vendor has contracts to supply gaming goods or
  162  services, including, but not limited to, lottery goods and
  163  services, and of the nature of the goods or services involved
  164  for each such state or jurisdiction.
  165         (d) A disclosure of all the states and jurisdictions in
  166  which the vendor has applied for, has sought renewal of, has
  167  received, has been denied, has pending, or has had revoked a
  168  gaming license or contract of any kind and of the disposition of
  169  such in each such state or jurisdiction. If any gaming license
  170  or contract has been revoked or has not been renewed or any
  171  gaming license or contract application has been either denied or
  172  is pending and has remained pending for more than 6 months, all
  173  of the facts and circumstances underlying this failure to
  174  receive such a license must be disclosed.
  175         (e) A disclosure of the details of any conviction or
  176  judgment of a state or federal court of the vendor of any felony
  177  or any other criminal offense other than a traffic violation.
  178         (f) A disclosure of the details of any bankruptcy,
  179  insolvency, reorganization, or any pending litigation of the
  180  vendor.
  181         (g) Such additional disclosures and information as the
  182  department may determine to be appropriate for the procurement
  183  involved.
  184         (h) The department shall lease all vending machines that
  185  dispense online lottery tickets, instant lottery tickets, or
  186  both online and instant lottery tickets.
  187         (i) The department will require a performance bond for the
  188  duration of the contract.
  189  
  190  The department may shall not contract with any vendor who fails
  191  to make the disclosures required by this subsection, and any
  192  contract with a vendor who has failed to make the required
  193  disclosures is shall be unenforceable. Any contract with any
  194  vendor who does not comply with such requirements for
  195  periodically updating such disclosures during the tenure of such
  196  contract as may be specified in such contract may be terminated
  197  by the department. This subsection must shall be construed
  198  broadly and liberally to achieve the ends of full disclosure of
  199  all information necessary to allow for a full and complete
  200  evaluation by the department of the competence, integrity,
  201  background, and character of vendors for major procurements.
  202         Section 5. Subsection (9) and paragraph (a) of subsection
  203  (15) of section 24.112, Florida Statutes, are amended to read:
  204         24.112 Retailers of lottery tickets; authorization of
  205  vending machines to dispense lottery tickets.—
  206         (9)(a) The department may require every retailer to post an
  207  appropriate bond as determined by the department, using an
  208  insurance company acceptable to the department, in an amount not
  209  to exceed three times twice the average lottery ticket sales of
  210  the retailer for the period within which the retailer is
  211  required to remit lottery funds to the department. For the first
  212  90 days of sales of a new retailer, the amount of the bond may
  213  not exceed three times twice the average estimated lottery
  214  ticket sales for the period within which the retailer is
  215  required to remit lottery funds to the department. This
  216  paragraph does shall not apply to lottery tickets which are
  217  prepaid by the retailer.
  218         (b) In lieu of such bond, the department may do any of the
  219  following:
  220         1. Purchase blanket bonds covering all or selected
  221  retailers.
  222         2.or may Allow a retailer to deposit and maintain with the
  223  Chief Financial Officer securities that are interest bearing or
  224  accruing and that, with the exception of those specified in sub
  225  subparagraphs a. and b. subparagraphs 1. and 2., are rated in
  226  one of the four highest classifications by an established
  227  nationally recognized investment rating service. Securities
  228  eligible under this subparagraph are paragraph shall be limited
  229  to:
  230         a.1. Certificates of deposit issued by solvent banks or
  231  savings associations organized and existing under the laws of
  232  this state or under the laws of the United States and having
  233  their principal place of business in this state.
  234         b.2. United States bonds, notes, and bills for which the
  235  full faith and credit of the government of the United States is
  236  pledged for the payment of principal and interest.
  237         c.3. General obligation bonds and notes of any political
  238  subdivision of the state.
  239         d.4. Corporate bonds of any corporation that is not an
  240  affiliate or subsidiary of the depositor.
  241         3. Allow a retailer to remit funds to the department for
  242  deposit in an interest-bearing bank account held by the
  243  department.
  244  
  245  Such securities must shall be held in trust and shall have at
  246  all times a market value at least equal to an amount required by
  247  the department.
  248         (15) A vending machine may be used to dispense online
  249  lottery tickets, instant lottery tickets, or both online and
  250  instant lottery tickets.
  251         (a) The vending machine must:
  252         1. Dispense a lottery ticket following receipt of payment
  253  after a purchaser inserts a coin or currency in the machine;.
  254         2. Be capable of being electronically deactivated for a
  255  period of 5 minutes or more; and.
  256         3. Be designed to prevent its use for any purpose other
  257  than dispensing a lottery ticket.
  258         Section 6. Subsection (2) of section 24.116, Florida
  259  Statutes, is amended to read:
  260         24.116 Unlawful purchase of lottery tickets; penalty.—
  261         (2) An No officer or employee of the department or any
  262  relative living in the same household with such officer or
  263  employee may not purchase a lottery ticket. Sworn law
  264  enforcement officers employed by the Division of Security may
  265  purchase lottery tickets and present lottery tickets to a
  266  lottery retailer to claim a prize when such purchase or
  267  presentation of lottery tickets is necessary for the performance
  268  of the officers’ official duties, including, but not limited to,
  269  compliance operations and investigations.
  270         Section 7. Subsection (3) of section 24.118, Florida
  271  Statutes, is amended, and subsections (5) and (6) are added to
  272  that section, to read:
  273         24.118 Other prohibited acts; penalties.—
  274         (3) COUNTERFEIT OR ALTERED TICKETS.—A Any person who:
  275         (a) Knowingly presents a counterfeit or altered state
  276  lottery ticket;
  277         (b) Knowingly transfers a counterfeit or altered state
  278  lottery ticket to another to present for payment; or
  279         (c) With intent to defraud, falsely makes, alters, forges,
  280  passes, or counterfeits a state lottery ticket; or
  281         (d) Files with the department a claim for payment based
  282  upon facts alleged by the claimant which facts are untrue and
  283  known by the claimant to be untrue when the claim is made;
  284  
  285  commits is guilty of a felony of the third degree, punishable as
  286  provided in s. 775.082, s. 775.083, or s. 775.084.
  287         (5)FALSE CLAIM.A person may not, when presenting or
  288  causing to be presented any claim for payment or approval to an
  289  officer or employee of the department or to a lottery retailer,
  290  knowingly and willfully:
  291         (a) Falsify or conceal a material fact;
  292         (b) Make a false, fictitious, or fraudulent statement or
  293  representation relating to a material fact; or
  294         (c) Make or use any false document, knowing the document
  295  contains a false, fictitious, or fraudulent statement or entry
  296  relating to a material fact.
  297  
  298  A person who violates this subsection commits a felony of the
  299  third degree, punishable as provided in s. 775.082, s. 775.083,
  300  or s. 775.084.
  301         (6) THEFT OF LOTTERY TICKET BY RETAILER.
  302         (a) A lottery retailer or an employee thereof may not use
  303  his or her position to knowingly facilitate, participate in, or
  304  otherwise assist in the theft of any lottery ticket from the
  305  retail establishment or from a patron or customer of the retail
  306  establishment.
  307         (b) A person who violates paragraph (a) commits a felony of
  308  the third degree, punishable as provided in s. 775.082, s.
  309  775.083, or s. 775.084.
  310         (c) As used in this subsection, the terms “patron” and
  311  “customer” include a sworn law enforcement officer of the
  312  Division of Security presenting a lottery ticket to a lottery
  313  retailer to claim a prize during the performance of the law
  314  enforcement officer’s official duties.
  315         Section 8. This act shall take effect July 1, 2026.