Bill Text: FL S0674 | 2010 | Regular Session | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: State Lottery [CPSC]

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2010-04-30 - Died in Messages [S0674 Detail]

Download: Florida-2010-S0674-Comm_Sub.html

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Florida Senate - 2010                              CS for SB 674 
 
By the Committee on Regulated Industries; and Senator Jones 
580-03624-10                                           2010674c1 
1 
2                        A bill to be entitled 
3         An act relating to the state lottery; amending s. 
4         24.105, F.S.; authorizing the use of player-activated 
5         machines that have additional functionality; amending 
6         s. 24.111, F.S.; adding limited liability companies to 
7         the list of potential vendors that the Department of 
8         the Lottery must investigate; prohibiting the 
9         department from entering into a contract for a major 
10         procurement if a managing member of the vendor has 
11         been convicted of a felony; removing a duplicative 
12         provision; amending s. 24.113, F.S.; removing a 
13         provision limiting the percentage of the same type of 
14         minority retailer that the Department of the Lottery 
15         may contract with to 35 percent; amending s. 24.114, 
16         F.S.; providing a penalty for failure by a retailer to 
17         remit funds as required; providing an effective date. 
18 
19  Be It Enacted by the Legislature of the State of Florida: 
20 
21         Section 1. Paragraph (a) of subsection (9) of section 
22  24.105, Florida Statutes, is amended to read: 
23         24.105 Powers and duties of department.—The department 
24  shall: 
25         (9) Adopt rules governing the establishment and operation 
26  of the state lottery, including: 
27         (a) The type of lottery games to be conducted, except that: 
28         1. No name of an elected official shall appear on the 
29  ticket or play slip of any lottery game or on any prize or on 
30  any instrument used for the payment of prizes, unless such prize 
31  is in the form of a state warrant. 
32         2. No coins or currency shall be dispensed from any 
33  electronic computer terminal or device used in any lottery game. 
34         3. Other than as provided in subparagraph 4., no terminal 
35  or device may be used for any lottery game which may be operated 
36  solely by the player without the assistance of the retailer. 
37         4. The only player-activated machine which may be utilized 
38  is a machine which dispenses instant lottery game tickets 
39  following the insertion of a coin or currency by a ticket 
40  purchaser. To be authorized a machine must: be under the 
41  supervision and within the direct line of sight of the lottery 
42  retailer to ensure that the machine is monitored and only 
43  operated by persons at least 18 years of age; be capable of 
44  being electronically deactivated by the retailer to prohibit use 
45  by persons less than 18 years of age through the use of a 
46  lockout device that maintains the machine’s deactivation for a 
47  period of no less than 5 minutes; and be designed to prevent its 
48  use or conversion for use in any manner other than the 
49  dispensing of instant lottery tickets or revealing the results 
50  of the instant lottery tickets. Authorized machines may reveal 
51  the results of the instant lottery ticket in an entertainment 
52  format that may include video displays or other similar 
53  technologies. Authorized machines may dispense change to players 
54  purchasing tickets but may not be utilized for paying the 
55  holders of winning tickets of any kind, except that authorized 
56  machines may permit the player to redeem a winning ticket to 
57  purchase more instant lottery tickets. At least one clerk must 
58  be on duty at the lottery retailer while the machine is in 
59  operation. However, at least two clerks must be on duty at any 
60  lottery location which has violated s. 24.1055. 
61         Section 2. Paragraph (a) of subsection (2) and subsections 
62  (4) and (6) of section 24.111, Florida Statutes, are amended to 
63  read: 
64         24.111 Vendors; disclosure and contract requirements.— 
65         (2) The department shall investigate the financial 
66  responsibility, security, and integrity of each vendor with 
67  which it intends to negotiate a contract for major procurement. 
68  Such investigation may include an investigation of the financial 
69  responsibility, security, and integrity of any or all persons 
70  whose names and addresses are required to be disclosed pursuant 
71  to paragraph (a). Any person who submits a bid, proposal, or 
72  offer as part of a major procurement must, at the time of 
73  submitting such bid, proposal, or offer, provide the following: 
74         (a) A disclosure of the vendor’s name and address and, as 
75  applicable, the name and address and any additional disclosures 
76  necessary for an investigation of the financial responsibility, 
77  security, and integrity of the following: 
78         1. If the vendor is a corporation, the officers, directors, 
79  and each stockholder in such corporation; except that, in the 
80  case of owners of equity securities of a publicly traded 
81  corporation, only the names and addresses of those known to the 
82  corporation to own beneficially 5 percent or more of such 
83  securities need be disclosed. 
84         2. If the vendor is a trust, the trustee and all persons 
85  entitled to receive income or benefit from the trust. 
86         3. If the vendor is an association, the members, officers, 
87  and directors. 
88         4. If the vendor is a partnership or joint venture, all of 
89  the general partners, limited partners, or joint venturers. 
90         5. If the vendor is a limited liability company, each 
91  officer, director, member, manager, and managing member of the 
92  company. 
93 
94  If the vendor subcontracts any substantial portion of the work 
95  to be performed to a subcontractor, the vendor shall disclose 
96  all of the information required by this paragraph for the 
97  subcontractor as if the subcontractor were itself a vendor. 
98 
99  The department shall not contract with any vendor who fails to 
100  make the disclosures required by this subsection, and any 
101  contract with a vendor who has failed to make the required 
102  disclosures shall be unenforceable. Any contract with any vendor 
103  who does not comply with such requirements for periodically 
104  updating such disclosures during the tenure of such contract as 
105  may be specified in such contract may be terminated by the 
106  department. This subsection shall be construed broadly and 
107  liberally to achieve the ends of full disclosure of all 
108  information necessary to allow for a full and complete 
109  evaluation by the department of the competence, integrity, 
110  background, and character of vendors for major procurements. 
111         (4) No contract for a major procurement with any vendor 
112  shall be entered into if that vendor, or any of the vendor’s 
113  officers, directors, trustees, partners, managing members, or 
114  joint venturers whose names and addresses are required to be 
115  disclosed pursuant to paragraph (2)(a), has been convicted of, 
116  or entered a plea of guilty or nolo contendere to, a felony 
117  committed in the preceding 10 years, regardless of adjudication, 
118  unless the department determines that: 
119         (a) The vendor or such individual has been pardoned or the 
120  vendor’s or such individual’s civil rights have been restored; 
121         (b) Subsequent to such conviction or entry of plea the 
122  vendor or such individual has engaged in the kind of law-abiding 
123  commerce and good citizenship that would reflect well upon the 
124  integrity of the lottery; or 
125         (c) If the vendor is not an individual, such vendor has 
126  terminated its relationship with the individual whose actions 
127  directly contributed to the vendor’s conviction or entry of 
128  plea. 
129         (6) Every contract in excess of $25,000 entered into by the 
130  department pursuant to this section shall contain a provision 
131  for payment of liquidated damages to the department for any 
132  breach of contract by the vendor. The department may require a 
133  liquidated damages provision in any contract if the department 
134  deems it necessary to protect the state’s financial interest. 
135         Section 3. Subsection (1) of section 24.113, Florida 
136  Statutes, is amended to read: 
137         24.113 Minority participation.— 
138         (1) It is the intent of the Legislature that the department 
139  encourage participation by minority business enterprises as 
140  defined in s. 288.703. Accordingly, 15 percent of the retailers 
141  shall be minority business enterprises as defined in s. 
142  288.703(2); however, no more than 35 percent of such retailers 
143  shall be owned by the same type of minority person, as defined 
144  in s. 288.703(3). The department is encouraged to meet the 
145  minority business enterprise procurement goals set forth in s. 
146  287.09451 in the procurement of commodities, contractual 
147  services, construction, and architectural and engineering 
148  services. This section shall not preclude or prohibit a minority 
149  person from competing for any other retailing or vending 
150  agreement awarded by the department. 
151         Section 4. Section 24.114, Florida Statutes, is amended to 
152  read: 
153         24.114 Bank deposits and control of lottery transactions.— 
154         (1)(a) All moneys received by each retailer from the 
155  operation of the state lottery, including, but not limited to, 
156  all ticket sales, interest, gifts, and donations, less the 
157  amount retained as compensation for the sale of the tickets and 
158  the amount paid out as prizes, shall be remitted to the 
159  department or deposited in a qualified public depository, as 
160  defined in s. 280.02, as directed by the department. 
161         (b) The department shall have the responsibility for all 
162  administrative functions related to the receipt of funds. The 
163  department may also require: 
164         1. Each retailer to file with the department reports of the 
165  retailer’s receipts and transactions in the sale of lottery 
166  tickets in such form and containing such information as the 
167  department may require. 
168         2. The department may require Any person, including a 
169  qualified public depository, to perform any function, activity, 
170  or service in connection with the operation of the lottery as it 
171  may deem advisable pursuant to this act and rules of the 
172  department, and such functions, activities, or services shall 
173  constitute lawful functions, activities, and services of such 
174  person. 
175         3.(2) The department may require Retailers to establish 
176  separate electronic funds transfer accounts for the purpose of 
177  receiving moneys from ticket sales, making payments to the 
178  department, and receiving payments from the department. 
179         (2)(3) Each retailer is liable to the department for any 
180  and all tickets accepted or generated by any employee or 
181  representative of that retailer, and the tickets shall be deemed 
182  to have been purchased by the retailer unless returned to the 
183  department within the time and in the manner prescribed by the 
184  department. 
185         (3) All moneys received by retailers from the sale of 
186  lottery tickets, less the amount retained as compensation for 
187  the sale of tickets and the amount paid out as prizes by the 
188  retailer, shall be held in trust prior to delivery to the 
189  department or electronic transfer to the Operating Trust Fund. 
190         (4) A retailer who fails to remit funds to the department 
191  as required commits a felony of the third degree, punishable as 
192  provided in s. 775.082, s. 775.083, or s. 775.084. 
193         Section 5. This act shall take effect July 1, 2010.