HB 1251

1	A bill to be entitled
2	An act relating to lottery operations; amending s. 24.111,
3	F.S.; adding limited liability companies to the list of
4	potential vendors the Department of the Lottery must
5	investigate; providing that no contract for a major
6	procurement may be entered if a managing member of the
7	potential vendor has been convicted of a felony, with
8	specified exceptions; deleting a requirement that
9	contracts in excess of a specified amount provide for
10	liquidated damages for a breach; amending s. 24.113, F.S.;
11	removing a cap on the percentage of any one type of
12	minority retailer that the Department of the Lottery may
13	contract with; amending s. 24.114, F.S.; removing
14	duplicative language; providing a criminal penalty for
15	failure to remit funds as required; providing an effective
16	date.
17
18	Be It Enacted by the Legislature of the State of Florida:
19
20	Section 1. Paragraph (a) of subsection (2) and subsections
21	(4) and (6) of section 24.111, Florida Statutes, are amended to
22	read:
23	24.111 Vendors; disclosure and contract requirements.-
24	(2) The department shall investigate the financial
25	responsibility, security, and integrity of each vendor with
26	which it intends to negotiate a contract for major procurement.
27	Such investigation may include an investigation of the financial
28	responsibility, security, and integrity of any or all persons
29	whose names and addresses are required to be disclosed pursuant
30	to paragraph (a). Any person who submits a bid, proposal, or
31	offer as part of a major procurement must, at the time of
32	submitting such bid, proposal, or offer, provide the following:
33	(a) A disclosure of the vendor's name and address and, as
34	applicable, the name and address and any additional disclosures
35	necessary for an investigation of the financial responsibility,
36	security, and integrity of the following:
37	1. If the vendor is a corporation, the officers,
38	directors, and each stockholder in such corporation; except
39	that, in the case of owners of equity securities of a publicly
40	traded corporation, only the names and addresses of those known
41	to the corporation to own beneficially 5 percent or more of such
42	securities need be disclosed.
43	2. If the vendor is a trust, the trustee and all persons
44	entitled to receive income or benefit from the trust.
45	3. If the vendor is an association, the members, officers,
46	and directors.
47	4. If the vendor is a partnership or joint venture, all of
48	the general partners, limited partners, or joint venturers.
49	5. If the vendor is a limited liability company, each
50	officer, director, member, manager, and managing member of the
51	company.
52
53	If the vendor subcontracts any substantial portion of the work
54	to be performed to a subcontractor, the vendor shall disclose
55	all of the information required by this paragraph for the
56	subcontractor as if the subcontractor were itself a vendor.
57
58	The department shall not contract with any vendor who fails to
59	make the disclosures required by this subsection, and any
60	contract with a vendor who has failed to make the required
61	disclosures shall be unenforceable. Any contract with any vendor
62	who does not comply with such requirements for periodically
63	updating such disclosures during the tenure of such contract as
64	may be specified in such contract may be terminated by the
65	department. This subsection shall be construed broadly and
66	liberally to achieve the ends of full disclosure of all
67	information necessary to allow for a full and complete
68	evaluation by the department of the competence, integrity,
69	background, and character of vendors for major procurements.
70	(4) No contract for a major procurement with any vendor
71	shall be entered into if that vendor, or any of the vendor's
72	officers, directors, trustees, partners, managing members, or
73	joint venturers whose names and addresses are required to be
74	disclosed pursuant to paragraph (2)(a), has been convicted of,
75	or entered a plea of guilty or nolo contendere to, a felony
76	committed in the preceding 10 years, regardless of adjudication,
77	unless the department determines that:
78	(a) The vendor or such individual has been pardoned or the
79	vendor's or such individual's civil rights have been restored;
80	(b) Subsequent to such conviction or entry of plea the
81	vendor or such individual has engaged in the kind of law-abiding
82	commerce and good citizenship that would reflect well upon the
83	integrity of the lottery; or
84	(c) If the vendor is not an individual, such vendor has
85	terminated its relationship with the individual whose actions
86	directly contributed to the vendor's conviction or entry of
87	plea.
88	(6) Every contract in excess of $25,000 entered into by
89	the department pursuant to this section shall contain a
90	provision for payment of liquidated damages to the department
91	for any breach of contract by the vendor. The department may
92	require a liquidated damages provision in any contract if the
93	department deems it necessary to protect the state's financial
94	interest.
95	Section 2. Subsection (1) of section 24.113, Florida
96	Statutes, is amended to read:
97	24.113 Minority participation.-
98	(1) It is the intent of the Legislature that the
99	department encourage participation by minority business
100	enterprises as defined in s. 288.703. Accordingly, 15 percent of
101	the retailers shall be minority business enterprises as defined
102	in s. 288.703(2); however, no more than 35 percent of such
103	retailers shall be owned by the same type of minority person, as
104	defined in s. 288.703(3). The department is encouraged to meet
105	the minority business enterprise procurement goals set forth in
106	s. 287.09451 in the procurement of commodities, contractual
107	services, construction, and architectural and engineering
108	services. This section shall not preclude or prohibit a minority
109	person from competing for any other retailing or vending
110	agreement awarded by the department.
111	Section 3. Section 24.114, Florida Statutes, is amended to
112	read:
113	24.114 Bank deposits and control of lottery transactions;
114	penalties.-
115	(1)(a) All moneys received by each retailer from the
116	operation of the state lottery, including, but not limited to,
117	all ticket sales, interest, gifts, and donations, less the
118	amount retained as compensation for the sale of the tickets and
119	the amount paid out as prizes, shall be remitted to the
120	department or deposited in a qualified public depository, as
121	defined in s. 280.02, as directed by the department.
122	(b) The department shall have the responsibility for all
123	administrative functions related to the receipt of funds. The
124	department may also require:
125	1. Each retailer to file with the department reports of
126	the retailer's receipts and transactions in the sale of lottery
127	tickets in such form and containing such information as the
128	department may require.
129	2. The department may require Any person, including a
130	qualified public depository, to perform any function, activity,
131	or service in connection with the operation of the lottery as it
132	may deem advisable pursuant to this act and rules of the
133	department, and such functions, activities, or services shall
134	constitute lawful functions, activities, and services of such
135	person.
136	3.(2) The department may require Retailers to establish
137	separate electronic funds transfer accounts for the purpose of
138	receiving moneys from ticket sales, making payments to the
139	department, and receiving payments from the department.
140	(2)(3) Each retailer is liable to the department for any
141	and all tickets accepted or generated by any employee or
142	representative of that retailer, and the tickets shall be deemed
143	to have been purchased by the retailer unless returned to the
144	department within the time and in the manner prescribed by the
145	department.
146	(3) All moneys received by retailers from the sale of
147	lottery tickets, less the amount retained as compensation for
148	the sale of tickets and the amount paid out as prizes by the
149	retailer, shall be held in trust prior to delivery to the
150	department or electronic transfer to the Operating Trust Fund.
151	(4) A retailer who fails to remit funds to the department
152	as required by this section commits a felony of the third
153	degree, punishable as provided in s. 775.082, s. 775.083, or s.
154	775.084.
155	Section 4. This act shall take effect July 1, 2010.

CODING: Words stricken are deletions; words underlined are additions.