Bill Text: FL S0674 | 2010 | Regular Session | Engrossed

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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-Engrossed.html

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CS for CS for SB 674                             First Engrossed 
2010674e1 
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; providing 
5         for discontinuance of machine operations; providing 
6         contract requirements; amending s. 24.111, F.S.; 
7         adding limited liability companies to the list of 
8         potential vendors that the Department of the Lottery 
9         must investigate; providing that the Department of the 
10         Lottery may lease all instant ticket vending machines; 
11         prohibiting the department from entering into a 
12         contract for a major procurement if a managing member 
13         of the vendor has been convicted of a felony; removing 
14         a duplicative provision; amending s. 24.113, F.S.; 
15         removing a provision limiting the percentage of the 
16         same type of minority retailer that the Department of 
17         the Lottery may contract with to 35 percent; amending 
18         s. 24.114, F.S.; providing a penalty for failure by a 
19         retailer to remit funds as required; providing an 
20         effective date. 
21 
22  Be It Enacted by the Legislature of the State of Florida: 
23 
24         Section 1. Paragraph (a) of subsection (9) of section 
25  24.105, Florida Statutes, is amended to read: 
26         24.105 Powers and duties of department.—The department 
27  shall: 
28         (9) Adopt rules governing the establishment and operation 
29  of the state lottery, including: 
30         (a) The type of lottery games to be conducted, except that: 
31         1. No name of an elected official shall appear on the 
32  ticket or play slip of any lottery game or on any prize or on 
33  any instrument used for the payment of prizes, unless such prize 
34  is in the form of a state warrant. 
35         2. No coins or currency shall be dispensed from any 
36  electronic computer terminal or device used in any lottery game. 
37         3. Other than as provided in subparagraph 4., no terminal 
38  or device may be used for any lottery game which may be operated 
39  solely by the player without the assistance of the retailer. 
40         4. Only the three types of The only player-activated 
41  machines described in this subparagraph machine which may be 
42  utilized is a machine which dispenses instant lottery game 
43  tickets following the insertion of a coin or currency by a 
44  ticket purchaser. To be authorized, a machine must: be under the 
45  supervision and within the direct line of sight of the lottery 
46  retailer to ensure that the machine is monitored and only 
47  operated by persons at least 18 years of age and; be capable of 
48  being electronically deactivated by the retailer to prohibit use 
49  by persons less than 18 years of age through the use of a 
50  lockout device that maintains the machine’s deactivation for a 
51  period of no less than 5 minutes; and be designed to prevent its 
52  use or conversion for use in any manner other than the 
53  dispensing of instant lottery tickets. Authorized machines may 
54  dispense change to players purchasing tickets but may not be 
55  utilized for paying the holders of winning tickets of any kind. 
56  At least one clerk must be on duty at the lottery retailer while 
57  the machine is in operation. However, at least two clerks must 
58  be on duty at any lottery location which has violated s. 
59  24.1055. Not more than 10 machines may be installed at any 
60  facility or location. In addition to the above requirements, the 
61  following requirements must also be satisfied: 
62         a. A machine may be used to dispense preprinted instant 
63  lottery tickets, but the machine may not read or reveal the 
64  results of the ticket or allow a player to redeem any ticket. 
65  The machine, or any machine or device linked to the machine, may 
66  not include or make use of video reels or mechanical reels or 
67  other video depictions of slot machine or casino game themes or 
68  titles for game play. This does not preclude the use of casino 
69  game themes or titles on such tickets or signage or advertising 
70  displays on the machines; 
71         b. A machine that displays an image of the ticket on a 
72  video screen may be used to dispense predetermined electronic 
73  instant lottery tickets, provided the player must touch the 
74  image of the ticket on the screen to reveal the outcome of the 
75  ticket. The machine may not permit a player to redeem winnings 
76  and may not make use of video reels or mechanical reels or 
77  simulate the play of any casino game. A retailer who utilizes 
78  such machines must be paid the same amount as the retailer would 
79  be paid for the sale of paper instant lottery tickets. However, 
80  a machine may not be installed at any licensed pari-mutuel 
81  facility; 
82         c. A machine may be used to dispense a paper lottery ticket 
83  with numbers selected by the player or randomly by the machine. 
84  The machine may not reveal the winning numbers to the player. 
85  The winning numbers must be selected at a subsequent time and 
86  different location through a drawing by the Florida Lottery. The 
87  machine, or any machine or device linked to the machine, may not 
88  include or make use of video reels or mechanical reels or other 
89  video depictions of slot machine or casino-game themes or titles 
90  for game play. The machine may not be used to redeem a winning 
91  ticket. These requirements do not preclude the use of casino 
92  game themes or titles for signage or advertising on the machine; 
93  and 
94         d. The department shall discontinue the operation of any 
95  machines authorized under this subparagraph if such operation 
96  results in cessation of payments, or payments being placed into 
97  escrow, under the compact authorized under s. 285.710. All 
98  contracts with retailers or vendors offering these machines 
99  shall be subject to this provision. 
100         Section 2. Paragraphs (a) and (h) of subsection (2) and 
101  subsections (4) and (6) of section 24.111, Florida Statutes, are 
102  amended to read: 
103         24.111 Vendors; disclosure and contract requirements.— 
104         (2) The department shall investigate the financial 
105  responsibility, security, and integrity of each vendor with 
106  which it intends to negotiate a contract for major procurement. 
107  Such investigation may include an investigation of the financial 
108  responsibility, security, and integrity of any or all persons 
109  whose names and addresses are required to be disclosed pursuant 
110  to paragraph (a). Any person who submits a bid, proposal, or 
111  offer as part of a major procurement must, at the time of 
112  submitting such bid, proposal, or offer, provide the following: 
113         (a) A disclosure of the vendor’s name and address and, as 
114  applicable, the name and address and any additional disclosures 
115  necessary for an investigation of the financial responsibility, 
116  security, and integrity of the following: 
117         1. If the vendor is a corporation, the officers, directors, 
118  and each stockholder in such corporation; except that, in the 
119  case of owners of equity securities of a publicly traded 
120  corporation, only the names and addresses of those known to the 
121  corporation to own beneficially 5 percent or more of such 
122  securities need be disclosed. 
123         2. If the vendor is a trust, the trustee and all persons 
124  entitled to receive income or benefit from the trust. 
125         3. If the vendor is an association, the members, officers, 
126  and directors. 
127         4. If the vendor is a partnership or joint venture, all of 
128  the general partners, limited partners, or joint venturers. 
129         5. If the vendor is a limited liability company, each 
130  officer, director, member, manager, and managing member of the 
131  company. 
132 
133  If the vendor subcontracts any substantial portion of the work 
134  to be performed to a subcontractor, the vendor shall disclose 
135  all of the information required by this paragraph for the 
136  subcontractor as if the subcontractor were itself a vendor. 
137         (h) The department may shall lease all instant ticket 
138  vending machines. 
139 
140  The department shall not contract with any vendor who fails to 
141  make the disclosures required by this subsection, and any 
142  contract with a vendor who has failed to make the required 
143  disclosures shall be unenforceable. Any contract with any vendor 
144  who does not comply with such requirements for periodically 
145  updating such disclosures during the tenure of such contract as 
146  may be specified in such contract may be terminated by the 
147  department. This subsection shall be construed broadly and 
148  liberally to achieve the ends of full disclosure of all 
149  information necessary to allow for a full and complete 
150  evaluation by the department of the competence, integrity, 
151  background, and character of vendors for major procurements. 
152         (4) No contract for a major procurement with any vendor 
153  shall be entered into if that vendor, or any of the vendor’s 
154  officers, directors, trustees, partners, managing members, or 
155  joint venturers whose names and addresses are required to be 
156  disclosed pursuant to paragraph (2)(a), has been convicted of, 
157  or entered a plea of guilty or nolo contendere to, a felony 
158  committed in the preceding 10 years, regardless of adjudication, 
159  unless the department determines that: 
160         (a) The vendor or such individual has been pardoned or the 
161  vendor’s or such individual’s civil rights have been restored; 
162         (b) Subsequent to such conviction or entry of plea the 
163  vendor or such individual has engaged in the kind of law-abiding 
164  commerce and good citizenship that would reflect well upon the 
165  integrity of the lottery; or 
166         (c) If the vendor is not an individual, such vendor has 
167  terminated its relationship with the individual whose actions 
168  directly contributed to the vendor’s conviction or entry of 
169  plea. 
170         (6) Every contract in excess of $25,000 entered into by the 
171  department pursuant to this section shall contain a provision 
172  for payment of liquidated damages to the department for any 
173  breach of contract by the vendor. The department may require a 
174  liquidated damages provision in any contract if the department 
175  deems it necessary to protect the state’s financial interest. 
176         Section 3. Subsection (1) of section 24.113, Florida 
177  Statutes, is amended to read: 
178         24.113 Minority participation.— 
179         (1) It is the intent of the Legislature that the department 
180  encourage participation by minority business enterprises as 
181  defined in s. 288.703. Accordingly, 15 percent of the retailers 
182  shall be minority business enterprises as defined in s. 
183  288.703(2); however, no more than 35 percent of such retailers 
184  shall be owned by the same type of minority person, as defined 
185  in s. 288.703(3). The department is encouraged to meet the 
186  minority business enterprise procurement goals set forth in s. 
187  287.09451 in the procurement of commodities, contractual 
188  services, construction, and architectural and engineering 
189  services. This section shall not preclude or prohibit a minority 
190  person from competing for any other retailing or vending 
191  agreement awarded by the department. 
192         Section 4. Section 24.114, Florida Statutes, is amended to 
193  read: 
194         24.114 Bank deposits and control of lottery transactions.— 
195         (1)(a) All moneys received by each retailer from the 
196  operation of the state lottery, including, but not limited to, 
197  all ticket sales, interest, gifts, and donations, less the 
198  amount retained as compensation for the sale of the tickets and 
199  the amount paid out as prizes, shall be remitted to the 
200  department or deposited in a qualified public depository, as 
201  defined in s. 280.02, as directed by the department. 
202         (b) The department shall have the responsibility for all 
203  administrative functions related to the receipt of funds. The 
204  department may also require: 
205         1. Each retailer to file with the department reports of the 
206  retailer’s receipts and transactions in the sale of lottery 
207  tickets in such form and containing such information as the 
208  department may require. 
209         2. The department may require Any person, including a 
210  qualified public depository, to perform any function, activity, 
211  or service in connection with the operation of the lottery as it 
212  may deem advisable pursuant to this act and rules of the 
213  department, and such functions, activities, or services shall 
214  constitute lawful functions, activities, and services of such 
215  person. 
216         3.(2) The department may require Retailers to establish 
217  separate electronic funds transfer accounts for the purpose of 
218  receiving moneys from ticket sales, making payments to the 
219  department, and receiving payments from the department. 
220         (2)(3) Each retailer is liable to the department for any 
221  and all tickets accepted or generated by any employee or 
222  representative of that retailer, and the tickets shall be deemed 
223  to have been purchased by the retailer unless returned to the 
224  department within the time and in the manner prescribed by the 
225  department. 
226         (3) All moneys received by retailers from the sale of 
227  lottery tickets, less the amount retained as compensation for 
228  the sale of tickets and the amount paid out as prizes by the 
229  retailer, shall be held in trust prior to delivery to the 
230  department or electronic transfer to the Operating Trust Fund. 
231         (4) A retailer who fails to remit funds to the department 
232  as required commits a misdemeanor of the first degree, 
233  punishable as provided in s. 775.082 or s. 775.083. 
234         Section 5. This act shall take effect July 1, 2010.