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 CS for SB 674 
 
By the Committees on Criminal Justice; and Regulated Industries; 
and Senator Jones 
591-05213-10                                           2010674c2 
1                        A bill to be entitled 
2         An act relating to the state lottery; amending s. 
3         24.105, F.S.; authorizing the use of player-activated 
4         machines that have additional functionality; amending 
5         s. 24.111, F.S.; adding limited liability companies to 
6         the list of potential vendors that the Department of 
7         the Lottery must investigate; providing that the 
8         Department of the Lottery may lease all instant ticket 
9         vending machines; prohibiting the department from 
10         entering into a contract for a major procurement if a 
11         managing member of the vendor has been convicted of a 
12         felony; removing a duplicative provision; amending s. 
13         24.113, F.S.; removing a provision limiting the 
14         percentage of the same type of minority retailer that 
15         the Department of the Lottery may contract with to 35 
16         percent; amending s. 24.114, F.S.; providing a penalty 
17         for failure by a retailer to remit funds as required; 
18         providing an effective date. 
19 
20  Be It Enacted by the Legislature of the State of Florida: 
21 
22         Section 1. Paragraph (a) of subsection (9) of section 
23  24.105, Florida Statutes, is amended to read: 
24         24.105 Powers and duties of department.—The department 
25  shall: 
26         (9) Adopt rules governing the establishment and operation 
27  of the state lottery, including: 
28         (a) The type of lottery games to be conducted, except that: 
29         1. No name of an elected official shall appear on the 
30  ticket or play slip of any lottery game or on any prize or on 
31  any instrument used for the payment of prizes, unless such prize 
32  is in the form of a state warrant. 
33         2. No coins or currency shall be dispensed from any 
34  electronic computer terminal or device used in any lottery game. 
35         3. Other than as provided in subparagraph 4., no terminal 
36  or device may be used for any lottery game which may be operated 
37  solely by the player without the assistance of the retailer. 
38         4. Only the three types of The only player-activated 
39  machines described in this subparagraph machine which may be 
40  utilized is a machine which dispenses instant lottery game 
41  tickets following the insertion of a coin or currency by a 
42  ticket purchaser. To be authorized, a machine must: be under the 
43  supervision and within the direct line of sight of the lottery 
44  retailer to ensure that the machine is monitored and only 
45  operated by persons at least 18 years of age and; be capable of 
46  being electronically deactivated by the retailer to prohibit use 
47  by persons less than 18 years of age through the use of a 
48  lockout device that maintains the machine’s deactivation for a 
49  period of no less than 5 minutes; and be designed to prevent its 
50  use or conversion for use in any manner other than the 
51  dispensing of instant lottery tickets. Authorized machines may 
52  dispense change to players purchasing tickets but may not be 
53  utilized for paying the holders of winning tickets of any kind. 
54  At least one clerk must be on duty at the lottery retailer while 
55  the machine is in operation. However, at least two clerks must 
56  be on duty at any lottery location which has violated s. 
57  24.1055. Not more than 10 machines may be installed at any 
58  facility or location. In addition to the above requirements, the 
59  following requirements must also be satisfied: 
60         a. A machine may be used to dispense preprinted instant 
61  lottery tickets, but the machine may not read or reveal the 
62  results of the ticket or allow a player to redeem any ticket. 
63  The machine, or any machine or device linked to the machine, may 
64  not include or make use of video reels or mechanical reels or 
65  other video depictions of slot machine or casino game themes or 
66  titles for game play. This does not preclude the use of casino 
67  game themes or titles on such tickets or signage or advertising 
68  displays on the machines; 
69         b. A machine that displays an image of the ticket on a 
70  video screen may be used to dispense predetermined electronic 
71  instant lottery tickets, provided the player must touch the 
72  image of the ticket on the screen to reveal the outcome of the 
73  ticket. The machine may not permit a player to redeem winnings 
74  and may not make use of video reels or mechanical reels or 
75  simulate the play of any casino game. A retailer who utilizes 
76  such machines must be paid the same amount as the retailer would 
77  be paid for the sale of paper instant lottery tickets. However, 
78  a machine may not be installed at any licensed pari-mutuel 
79  facility; and 
80         c. A machine may be used to dispense a paper lottery ticket 
81  with numbers selected by the player or randomly by the machine. 
82  The machine may not reveal the winning numbers to the player. 
83  The winning numbers must be selected at a subsequent time and 
84  different location through a drawing by the Florida Lottery. The 
85  machine, or any machine or device linked to the machine, may not 
86  include or make use of video reels or mechanical reels or other 
87  video depictions of slot machine or casino-game themes or titles 
88  for game play. The machine may not be used to redeem a winning 
89  ticket. These requirements do not preclude the use of casino 
90  game themes or titles for signage or advertising on the machine. 
91         Section 2. Paragraphs (a) and (h) of subsection (2) and 
92  subsections (4) and (6) of section 24.111, Florida Statutes, are 
93  amended to read: 
94         24.111 Vendors; disclosure and contract requirements.— 
95         (2) The department shall investigate the financial 
96  responsibility, security, and integrity of each vendor with 
97  which it intends to negotiate a contract for major procurement. 
98  Such investigation may include an investigation of the financial 
99  responsibility, security, and integrity of any or all persons 
100  whose names and addresses are required to be disclosed pursuant 
101  to paragraph (a). Any person who submits a bid, proposal, or 
102  offer as part of a major procurement must, at the time of 
103  submitting such bid, proposal, or offer, provide the following: 
104         (a) A disclosure of the vendor’s name and address and, as 
105  applicable, the name and address and any additional disclosures 
106  necessary for an investigation of the financial responsibility, 
107  security, and integrity of the following: 
108         1. If the vendor is a corporation, the officers, directors, 
109  and each stockholder in such corporation; except that, in the 
110  case of owners of equity securities of a publicly traded 
111  corporation, only the names and addresses of those known to the 
112  corporation to own beneficially 5 percent or more of such 
113  securities need be disclosed. 
114         2. If the vendor is a trust, the trustee and all persons 
115  entitled to receive income or benefit from the trust. 
116         3. If the vendor is an association, the members, officers, 
117  and directors. 
118         4. If the vendor is a partnership or joint venture, all of 
119  the general partners, limited partners, or joint venturers. 
120         5. If the vendor is a limited liability company, each 
121  officer, director, member, manager, and managing member of the 
122  company. 
123 
124  If the vendor subcontracts any substantial portion of the work 
125  to be performed to a subcontractor, the vendor shall disclose 
126  all of the information required by this paragraph for the 
127  subcontractor as if the subcontractor were itself a vendor. 
128         (h) The department may shall lease all instant ticket 
129  vending machines. 
130 
131  The department shall not contract with any vendor who fails to 
132  make the disclosures required by this subsection, and any 
133  contract with a vendor who has failed to make the required 
134  disclosures shall be unenforceable. Any contract with any vendor 
135  who does not comply with such requirements for periodically 
136  updating such disclosures during the tenure of such contract as 
137  may be specified in such contract may be terminated by the 
138  department. This subsection shall be construed broadly and 
139  liberally to achieve the ends of full disclosure of all 
140  information necessary to allow for a full and complete 
141  evaluation by the department of the competence, integrity, 
142  background, and character of vendors for major procurements. 
143         (4) No contract for a major procurement with any vendor 
144  shall be entered into if that vendor, or any of the vendor’s 
145  officers, directors, trustees, partners, managing members, or 
146  joint venturers whose names and addresses are required to be 
147  disclosed pursuant to paragraph (2)(a), has been convicted of, 
148  or entered a plea of guilty or nolo contendere to, a felony 
149  committed in the preceding 10 years, regardless of adjudication, 
150  unless the department determines that: 
151         (a) The vendor or such individual has been pardoned or the 
152  vendor’s or such individual’s civil rights have been restored; 
153         (b) Subsequent to such conviction or entry of plea the 
154  vendor or such individual has engaged in the kind of law-abiding 
155  commerce and good citizenship that would reflect well upon the 
156  integrity of the lottery; or 
157         (c) If the vendor is not an individual, such vendor has 
158  terminated its relationship with the individual whose actions 
159  directly contributed to the vendor’s conviction or entry of 
160  plea. 
161         (6) Every contract in excess of $25,000 entered into by the 
162  department pursuant to this section shall contain a provision 
163  for payment of liquidated damages to the department for any 
164  breach of contract by the vendor. The department may require a 
165  liquidated damages provision in any contract if the department 
166  deems it necessary to protect the state’s financial interest. 
167         Section 3. Subsection (1) of section 24.113, Florida 
168  Statutes, is amended to read: 
169         24.113 Minority participation.— 
170         (1) It is the intent of the Legislature that the department 
171  encourage participation by minority business enterprises as 
172  defined in s. 288.703. Accordingly, 15 percent of the retailers 
173  shall be minority business enterprises as defined in s. 
174  288.703(2); however, no more than 35 percent of such retailers 
175  shall be owned by the same type of minority person, as defined 
176  in s. 288.703(3). The department is encouraged to meet the 
177  minority business enterprise procurement goals set forth in s. 
178  287.09451 in the procurement of commodities, contractual 
179  services, construction, and architectural and engineering 
180  services. This section shall not preclude or prohibit a minority 
181  person from competing for any other retailing or vending 
182  agreement awarded by the department. 
183         Section 4. Section 24.114, Florida Statutes, is amended to 
184  read: 
185         24.114 Bank deposits and control of lottery transactions.— 
186         (1)(a) All moneys received by each retailer from the 
187  operation of the state lottery, including, but not limited to, 
188  all ticket sales, interest, gifts, and donations, less the 
189  amount retained as compensation for the sale of the tickets and 
190  the amount paid out as prizes, shall be remitted to the 
191  department or deposited in a qualified public depository, as 
192  defined in s. 280.02, as directed by the department. 
193         (b) The department shall have the responsibility for all 
194  administrative functions related to the receipt of funds. The 
195  department may also require: 
196         1. Each retailer to file with the department reports of the 
197  retailer’s receipts and transactions in the sale of lottery 
198  tickets in such form and containing such information as the 
199  department may require. 
200         2. The department may require Any person, including a 
201  qualified public depository, to perform any function, activity, 
202  or service in connection with the operation of the lottery as it 
203  may deem advisable pursuant to this act and rules of the 
204  department, and such functions, activities, or services shall 
205  constitute lawful functions, activities, and services of such 
206  person. 
207         3.(2) The department may require Retailers to establish 
208  separate electronic funds transfer accounts for the purpose of 
209  receiving moneys from ticket sales, making payments to the 
210  department, and receiving payments from the department. 
211         (2)(3) Each retailer is liable to the department for any 
212  and all tickets accepted or generated by any employee or 
213  representative of that retailer, and the tickets shall be deemed 
214  to have been purchased by the retailer unless returned to the 
215  department within the time and in the manner prescribed by the 
216  department. 
217         (3) All moneys received by retailers from the sale of 
218  lottery tickets, less the amount retained as compensation for 
219  the sale of tickets and the amount paid out as prizes by the 
220  retailer, shall be held in trust prior to delivery to the 
221  department or electronic transfer to the Operating Trust Fund. 
222         (4) A retailer who fails to remit funds to the department 
223  as required commits a misdemeanor of the first degree, 
224  punishable as provided in s. 775.082 or s. 775.083. 
225         Section 5. This act shall take effect July 1, 2010.