June 18, 2019
Print This PagePrint This Page

  *
Session:
Bill #:
Session:
Chamber: View Search Tips
Search Term:
Year: View Search Tips
Search Term:
       Florida Senate - 2010                                    SB 1428
       
       
       
       By Senator Smith
       
       
       
       
       29-00808-10                                           20101428__
    1                        A bill to be entitled                      
    2         An act relating to operation of the Florida Lottery;
    3         amending s. 20.317, F.S.; clarifying provisions
    4         concerning regional offices; amending s. 24.101, F.S.;
    5         revising a reference; amending s. 24.102, F.S.;
    6         revising provisions relating to legislative intent to
    7         provide for the operation of the lottery under a
    8         management agreement; amending s. 24.103, F.S.;
    9         providing and revising definitions; amending s.
   10         24.104, F.S.; revising provisions concerning the
   11         purpose of the Department of the Lottery to permit
   12         contracting with a manager; amending s. 24.105, F.S.;
   13         revising provisions concerning the powers and duties
   14         of the department to allow for possible contracting
   15         with a manager; providing that specified provisions
   16         apply regardless of whether the department contracts
   17         with a manager; deleting obsolete provisions; amending
   18         s. 24.107, F.S.; revising provisions concerning
   19         advertising and promotion of lottery games to conform
   20         to the possibility of contracting with a manager;
   21         amending ss. 24.108 and 24.111, F.S.; revising
   22         provisions relating to security and contracts for
   23         goods or services to conform to the possibility of
   24         contracting with a manager; creating s. 24.1115, F.S.;
   25         providing for a management agreement under which the
   26         lottery may be operated; providing intent; providing
   27         definitions; limiting the duration of such an
   28         agreement; providing limits on the games that may be
   29         offered under such an agreement; providing for an
   30         initial payment to the department by a manager;
   31         providing for royalty payments by a manager; providing
   32         for collection of funds in excess of a specified
   33         baseline growth percentage to ensure that the manager
   34         does not earn excess revenue; providing requirements
   35         for the contents of a management agreement; requiring
   36         periodic investigations of the performance by a
   37         manager; providing for a request for qualifications
   38         process to select a manager; providing for the public
   39         records status of specified materials under existing
   40         exemptions; providing for negotiations between one or
   41         more offerors and the department; providing selection
   42         procedures; requiring a public hearing; providing for
   43         designation of a manager by the Governor; providing
   44         for status of debt offering by the manager; providing
   45         for a time period for challenges to designation of a
   46         manager; providing department powers; prohibiting the
   47         department from selling the authorization to manage
   48         the lottery; providing that there is no prohibition on
   49         additional legislative authorization of other forms of
   50         gambling; amending s. 24.112, F.S.; revising
   51         provisions concerning retailers of lottery tickets to
   52         conform to the possibility of contracting with a
   53         manager; amending s. 24.113, F.S.; providing that
   54         provisions concerning minority participation also
   55         apply if the lottery contracts with a manager;
   56         amending ss. 24.114, 24.115, 24.1153, 24.117, 24.118,
   57         and 24.120, F.S.; revising provisions relating to bank
   58         deposits and control of lottery transactions, payment
   59         of prizes, assignment of prizes payable in
   60         installments, penalties for unlawful sale of lottery
   61         tickets, breach of confidentiality, and unlawful
   62         representation, and financial matters to conform to
   63         the possibility of contracting with a manager;
   64         amending s. 24.121, F.S.; revising provisions relating
   65         to allocation of revenues and expenditure of funds for
   66         public education to conform to the possibility of
   67         contracting with a manager; providing for a minimum
   68         allocation of proceeds received under a management
   69         agreement to the Florida Bright Futures Scholarship
   70         Program; amending ss. 24.122, 24.123, and 24.124,
   71         F.S.; revising provisions relating to an exemption
   72         from taxation, state preemption, inapplicability of
   73         other laws, annual audit of financial records and
   74         reports, responsibility for ticket accuracy, and
   75         liability to conform to the possibility of contracting
   76         with a manager; providing an effective date.
   77  
   78  Be It Enacted by the Legislature of the State of Florida:
   79  
   80         Section 1. Subsection (3) of section 20.317, Florida
   81  Statutes, is amended to read:
   82         20.317 Department of the Lottery.—There is created a
   83  Department of the Lottery.
   84         (3) The headquarters of the department shall be located in
   85  Tallahassee. However, the department may establish such regional
   86  offices throughout the state as the secretary deems necessary to
   87  perform its duties concerning the efficient operation of the
   88  state lottery.
   89         Section 2. Section 24.101, Florida Statutes, is amended to
   90  read:
   91         24.101 Short title.—This chapter act may be cited as the
   92  “Florida Public Education Lottery Act.”
   93         Section 3. Section 24.102, Florida Statutes, is amended to
   94  read:
   95         24.102 Purpose and intent.—
   96         (1) The purpose of this chapter act is to implement s. 15,
   97  Art. X of the State Constitution in a manner that enables the
   98  people of the state to benefit from significant additional
   99  moneys for education and also enables the people of the state to
  100  play the best lottery games available.
  101         (2) The intent of the Legislature is:
  102         (a) That the net proceeds of lottery games conducted
  103  pursuant to this chapter act be used to support improvements in
  104  public education and that such proceeds not be used as a
  105  substitute for existing resources for public education.
  106         (b) That the lottery games be operated by a department of
  107  state government that functions as much as possible in the
  108  manner of an entrepreneurial business enterprise or with the
  109  assistance of an entrepreneurial business enterprise under a
  110  management agreement overseen by the department. The Legislature
  111  recognizes that the operation of a lottery is a unique activity
  112  for state government and that structures and procedures
  113  appropriate to the performance of other governmental functions
  114  are not necessarily appropriate to the operation of a state
  115  lottery.
  116         (c) That the lottery games be operated by a self
  117  supporting, revenue-producing department or with the assistance
  118  of an entrepreneurial business enterprise under a management
  119  agreement with government oversight.
  120         (d) That the department be accountable to the Legislature
  121  and the people of the state through a system of audits and
  122  reports and through compliance with financial disclosure, open
  123  meetings, and public records laws and that any entity contracted
  124  with under a management agreement must also be accountable to
  125  the Legislature and the people of the state.
  126         Section 4. Section 24.103, Florida Statutes, is renumbered
  127  and amended to read:
  128         24.103 Definitions.—As used in this chapter act:
  129         (1) “Department” means the Department of the Lottery.
  130         (7)(2) “Secretary” means the secretary of the department.
  131         (3) “Management agreement” means that agreement entered
  132  into pursuant to which the state may contract with a manager to
  133  provide management services to the lottery, although under such
  134  an agreement the department shall continue to manage and operate
  135  the lottery, and further pursuant to which the manager may
  136  receive a certain share of lottery ticket sales or related
  137  proceeds in consideration of the payment of a fee or fees to the
  138  state.
  139         (4) “Manager” means an entity that provides management
  140  services to the lottery on behalf of the department under a
  141  management agreement.
  142         (5)(3) “Person” means any individual, firm, association,
  143  joint adventure, partnership, estate, trust, syndicate,
  144  fiduciary, corporation, or other group or combination and shall
  145  include any agency or political subdivision of the state.
  146         (2)(4) “Major procurement” means a procurement for a
  147  contract for the printing of tickets for use in any lottery
  148  game, consultation services for the startup of the lottery, any
  149  goods or services involving the official recording for lottery
  150  game play purposes of a player’s selections in any lottery game
  151  involving player selections, any goods or services involving the
  152  receiving of a player’s selection directly from a player in any
  153  lottery game involving player selections, any goods or services
  154  involving the drawing, determination, or generation of winners
  155  in any lottery game, the security report services provided for
  156  in this chapter act, or any goods and services relating to
  157  marketing and promotion that which exceed a value of $25,000.
  158         (6)(5) “Retailer” means a person who sells lottery tickets
  159  on behalf of the department or the manager pursuant to a
  160  contract.
  161         (8)(6) “Vendor” means a person who provides or proposes to
  162  provide goods or services to the department, but does not
  163  include an employee of the department, a retailer, or a state
  164  agency.
  165         Section 5. Section 24.104, Florida Statutes, is amended to
  166  read:
  167         24.104 Department; purpose.—The purpose of the department
  168  is to operate the state lottery as authorized by s. 15, Art. X
  169  of the State Constitution with or without a manager so as to
  170  maximize revenues in a manner consonant with the dignity of the
  171  state and the welfare of its citizens.
  172         Section 6. Subsections (2), (4), (6), (7), (9), (11), (15),
  173  (17), (18), and (19) of section 24.105, Florida Statutes, are
  174  amended to read:
  175         24.105 Powers and duties of department.—The department
  176  shall:
  177         (2) Supervise and administer the operation of the lottery
  178  with or without a manager in accordance with the provisions of
  179  this chapter act and rules adopted pursuant thereto.
  180         (4) Submit monthly and annual reports to the Governor, the
  181  Chief Financial Officer, the President of the Senate, and the
  182  Speaker of the House of Representatives disclosing the total
  183  lottery revenues, prize disbursements, and other expenses of the
  184  department during the preceding month or, if the lottery has
  185  entered into a management agreement, comparable information
  186  provided by the manager. The annual report shall additionally
  187  describe the organizational structure of the department,
  188  including its hierarchical structure, and shall identify the
  189  divisions and bureaus created by the secretary and summarize the
  190  departmental functions performed by each.
  191         (6) Maintain weekly or more frequent records of lottery
  192  transactions, including the distribution of tickets to
  193  retailers, revenues received, claims for prizes, prizes paid,
  194  and other financial transactions of the department. If the
  195  department has entered into a management agreement, the
  196  agreement shall require the manager to maintain comparable
  197  information.
  198         (7) Make a continuing study of the lottery to ascertain any
  199  defects of this chapter act or rules adopted thereunder which
  200  could result in abuses in the administration of the lottery;
  201  make a continuing study of the operation and the administration
  202  of similar laws in other states and of federal laws that which
  203  may affect the lottery; and, if the department has not entered
  204  into a management agreement, make a continuing study of the
  205  reaction of the public to existing and potential features of the
  206  lottery.
  207         (9) Adopt rules governing the establishment and operation
  208  of the state lottery, including:
  209         (a)1. The type of lottery games to be conducted.
  210         2. Regardless of whether the department has entered into a
  211  management agreement, except that:
  212         a.1. No name of an elected official shall appear on the
  213  ticket or play slip of any lottery game or on any prize or on
  214  any instrument used for the payment of prizes, unless such prize
  215  is in the form of a state warrant.
  216         b.2. No coins or currency shall be dispensed from any
  217  electronic computer terminal or device used in any lottery game.
  218         c.3. Other than as provided in sub-subparagraph d.
  219  subparagraph 4., no terminal or device may be used for any
  220  lottery game that which may be operated solely by the player
  221  without the assistance of the retailer.
  222         d.4. The only player-activated machine that which may be
  223  utilized is a machine that which dispenses instant lottery game
  224  tickets following the insertion of a coin or currency by a
  225  ticket purchaser. To be authorized a machine must: be under the
  226  supervision and within the direct line of sight of the lottery
  227  retailer to ensure that the machine is monitored and only
  228  operated by persons at least 18 years of age and; be capable of
  229  being electronically deactivated by the retailer to prohibit use
  230  by persons less than 18 years of age through the use of a
  231  lockout device that maintains the machine’s deactivation for a
  232  period of no less than 5 minutes unless the machine uses a
  233  method of verifying the age of an operator that the department
  234  certifies is equivalent or superior to line-of-sight monitoring
  235  and lockout by the retailer. Such a machine must also; and be
  236  designed to prevent its use or conversion for use in any manner
  237  other than the dispensing of instant lottery tickets. Authorized
  238  machines may dispense change to players purchasing tickets but
  239  may not be utilized for paying the holders of winning tickets of
  240  any kind. At least one clerk must be on duty at the lottery
  241  retailer while the machine is in operation. However, at least
  242  two clerks must be on duty at any lottery location that which
  243  has violated s. 24.1055.
  244         (b) The sales price of tickets.
  245         (c) The number and sizes of prizes.
  246         (d) The method of selecting winning tickets. However,
  247  regardless of whether the department has entered into a
  248  management agreement, if a lottery game involves a drawing, the
  249  drawing shall be public and witnessed by an accountant employed
  250  by an independent certified public accounting firm. The
  251  equipment used in the drawing shall be inspected before and
  252  after the drawing.
  253         (e) The manner of payment of prizes to holders of winning
  254  tickets.
  255         (f) The frequency of drawings or selections of winning
  256  tickets.
  257         (g) The number and type of locations at which tickets may
  258  be purchased.
  259         (h) The method to be used in selling tickets.
  260         (i) The manner and amount of compensation of retailers.
  261         (j) Such other matters necessary or desirable for the
  262  efficient or economical operation of the lottery or for the
  263  convenience of the public.
  264         (11) In the selection of games and method of selecting
  265  winning tickets, be sensitive to the impact of the lottery upon
  266  the pari-mutuel industry and, accordingly, the department or the
  267  manager, if any, may use for any game the theme of horseracing,
  268  dogracing, or jai alai and may allow a lottery game to be based
  269  upon a horserace, dograce, or jai alai activity so long as the
  270  outcome of such lottery game is determined entirely by chance.
  271         (15) Or the manager, if any, shall have the authority to
  272  charge fees to persons applying for contracts as vendors or
  273  retailers, which fees are reasonably calculated to cover the
  274  costs of investigations and other activities related to the
  275  processing of the application.
  276         (17) Or the manager, if any, shall, in accordance with the
  277  provisions of this chapter act, enter into contracts with
  278  retailers so as to provide adequate and convenient availability
  279  of tickets to the public for each game.
  280         (18) Or the manager, if any, shall have the authority to
  281  enter into agreements with other states for the operation and
  282  promotion of a multistate lottery if such agreements are in the
  283  best interest of the state lottery. The authority conferred by
  284  this subsection is not effective until 1 year after the first
  285  day of lottery ticket sales.
  286         (19) Employ division directors and other staff as may be
  287  necessary to carry out the provisions of this chapter act;
  288  however:
  289         (a) No person shall be employed by the department who has
  290  been convicted of, or entered a plea of guilty or nolo
  291  contendere to, a felony committed in the preceding 10 years,
  292  regardless of adjudication, unless the department determines
  293  that:
  294         1. The person has been pardoned or his or her civil rights
  295  have been restored; or
  296         2. Subsequent to such conviction or entry of plea the
  297  person has engaged in the kind of law-abiding commerce and good
  298  citizenship that would reflect well upon the integrity of the
  299  lottery.
  300         (b) No officer or employee of the department having
  301  decisionmaking authority shall participate in any decision
  302  involving any vendor or retailer with whom the officer or
  303  employee has a financial interest. No such officer or employee
  304  may participate in any decision involving any vendor or retailer
  305  with whom the officer or employee has discussed employment
  306  opportunities without the approval of the secretary or, if such
  307  officer is the secretary, without the approval of the Governor.
  308  Any officer or employee of the department shall notify the
  309  secretary of any such discussion or, if such officer is the
  310  secretary, he or she shall notify the Governor. A violation of
  311  this paragraph is punishable in accordance with s. 112.317.
  312         (c) No officer or employee of the department who leaves the
  313  employ of the department shall represent any vendor or retailer
  314  or the manager, if any, before the department regarding any
  315  specific matter in which the officer or employee was involved
  316  while employed by the department, for a period of 1 year
  317  following cessation of employment with the department. A
  318  violation of this paragraph is punishable in accordance with s.
  319  112.317.
  320         (d) The department shall establish and maintain a personnel
  321  program for its employees, including a personnel classification
  322  and pay plan which may provide any or all of the benefits
  323  provided in the Senior Management Service or Selected Exempt
  324  Service. Each officer or employee of the department shall be a
  325  member of the Florida Retirement System. The retirement class of
  326  each officer or employee shall be the same as other persons
  327  performing comparable functions for other agencies. Employees of
  328  the department shall serve at the pleasure of the secretary and
  329  shall be subject to suspension, dismissal, reduction in pay,
  330  demotion, transfer, or other personnel action at the discretion
  331  of the secretary. Such personnel actions are exempt from the
  332  provisions of chapter 120. All employees of the department are
  333  exempt from the Career Service System provided in chapter 110
  334  and, notwithstanding the provisions of s. 110.205(5), are not
  335  included in either the Senior Management Service or the Selected
  336  Exempt Service. However, all employees of the department are
  337  subject to all standards of conduct adopted by rule for career
  338  service and senior management employees pursuant to chapter 110.
  339  In the event of a conflict between standards of conduct
  340  applicable to employees of the Department of the Lottery the
  341  more restrictive standard shall apply. Interpretations as to the
  342  more restrictive standard may be provided by the Commission on
  343  Ethics upon request of an advisory opinion pursuant to s.
  344  112.322(3)(a), for purposes of this subsection the opinion shall
  345  be considered final action.
  346         (e) If the department enters into a management agreement,
  347  no employee or contractor of the manager shall receive
  348  membership in the Florida Retirement System or any other state
  349  retirement or other state employee benefits on the basis of such
  350  employment or contract.
  351         Section 7. Section 24.107, Florida Statutes, is amended to
  352  read:
  353         24.107 Advertising and promotion of lottery games.—
  354         (1) The Legislature recognizes the need for extensive and
  355  effective advertising and promotion of lottery games. It is the
  356  intent of the Legislature that such advertising and promotion be
  357  consistent with the dignity and integrity of the state. In
  358  advertising the value of a prize that will be paid over a period
  359  of years, the department or the manager, if any, may refer to
  360  the sum of all prize payments over the period.
  361         (2) The department or the manager, if any, may act as a
  362  retailer and may conduct promotions that which involve the
  363  dispensing of lottery tickets free of charge.
  364         Section 8. Subsections (2), (5), and (7) of section 24.108,
  365  Florida Statutes, are amended to read:
  366         24.108 Division of Security; duties; security report.—
  367         (2) The director and all investigators employed by the
  368  division shall meet the requirements for employment and
  369  appointment provided by s. 943.13 and shall satisfy the
  370  requirements for certification established by the Criminal
  371  Justice Standards and Training Commission pursuant to chapter
  372  943. The director and such investigators shall be designated law
  373  enforcement officers and shall have the power to investigate and
  374  arrest for any alleged violation of this chapter act or any rule
  375  adopted pursuant thereto, or any law of this state. Such law
  376  enforcement officers may enter upon any premises in which
  377  lottery tickets are sold, manufactured, printed, or stored
  378  within the state for the performance of their lawful duties and
  379  may take with them any necessary equipment, and such entry shall
  380  not constitute a trespass. In any instance in which there is
  381  reason to believe that a violation has occurred, such officers
  382  have the authority, without warrant, to search and inspect any
  383  premises where the violation is alleged to have occurred or is
  384  occurring. Any such officer may, consistent with the United
  385  States and Florida Constitutions, seize or take possession of
  386  any papers, records, tickets, currency, or other items related
  387  to any alleged violation.
  388         (5) The Department of Law Enforcement shall provide
  389  assistance in obtaining criminal history information relevant to
  390  investigations required for honest, secure, and exemplary
  391  lottery operations, and such other assistance as may be
  392  requested by the secretary and agreed to by the executive
  393  director of the Department of Law Enforcement. Any other state
  394  agency, including the Department of Business and Professional
  395  Regulation and the Department of Revenue, shall, upon request,
  396  provide the Department of the Lottery with any information
  397  relevant to any investigation conducted pursuant to this chapter
  398  act. The Department of the Lottery shall maintain the
  399  confidentiality of any confidential information it receives from
  400  any other agency. The Department of the Lottery shall reimburse
  401  any agency for the actual cost of providing any assistance
  402  pursuant to this subsection.
  403         (7)(a) After the first full year of sales of tickets to the
  404  public, or sooner if the secretary deems necessary, The
  405  department shall, as it deems appropriate, but at least once
  406  every 2 years engage an independent firm experienced in security
  407  procedures, including, but not limited to, computer security and
  408  systems security, to conduct a comprehensive study and
  409  evaluation of all aspects of security in the operation of the
  410  department.
  411         (b) The portion of the security report containing the
  412  overall evaluation of the department in terms of each aspect of
  413  security shall be presented to the Governor, the President of
  414  the Senate, and the Speaker of the House of Representatives. The
  415  portion of the security report containing specific
  416  recommendations shall be confidential and shall be presented
  417  only to the secretary, the Governor, and the Auditor General;
  418  however, upon certification that such information is necessary
  419  for the purpose of effecting legislative changes, such
  420  information shall be disclosed to the President of the Senate
  421  and the Speaker of the House of Representatives, who may
  422  disclose such information to members of the Legislature and
  423  legislative staff as necessary to effect such purpose. However,
  424  any person who receives a copy of such information or other
  425  information that which is confidential pursuant to this chapter
  426  act or rule of the department shall maintain its
  427  confidentiality. The confidential portion of the report is
  428  exempt from the provisions of s. 119.07(1) and s. 24(a), Art. I
  429  of the State Constitution.
  430         (c) Thereafter, similar studies of security shall be
  431  conducted as the department deems appropriate but at least once
  432  every 2 years.
  433         Section 9. Subsection (1) section 24.111, Florida Statutes,
  434  is amended to read:
  435         24.111 Vendors; disclosure and contract requirements.—
  436         (1) The department may enter into contracts for the
  437  purchase, lease, or lease-purchase of such goods or services as
  438  are necessary for effectuating the purposes of this chapter act.
  439  The department may not contract with any person or entity for
  440  the total operation and administration of the state lottery
  441  established by this chapter as provided in s. 24.1115 or act but
  442  may make procurements that which integrate functions such as
  443  lottery game design, supply of goods and services, and
  444  advertising. In all procurement decisions, the department shall
  445  take into account the particularly sensitive nature of the state
  446  lottery and shall consider the competence, quality of product,
  447  experience, and timely performance of the vendors in order to
  448  promote and ensure security, honesty, fairness, and integrity in
  449  the operation and administration of the lottery and the
  450  objective of raising net revenues for the benefit of the public
  451  purpose described in this chapter act.
  452         Section 10. Section 24.1115, Florida Statutes, is created
  453  to read:
  454         24.1115Management agreement.—
  455         (1) In construing this section, it is the intent of the
  456  Legislature that the manager be accountable to the Legislature
  457  and the people of this state through a system of audits and
  458  reports and by complying with the financial disclosure
  459  requirements of this section. The powers conferred by this
  460  section are in addition and supplemental to the powers conferred
  461  by any other law. If any other law or rule is inconsistent with
  462  this section, this section is controlling as to any management
  463  agreement entered into under this section.
  464         (2) As used in this section, the term:
  465         (a) “Offeror” means a person or group of persons that
  466  responds to a request for qualifications under this section.
  467         (b) “Request for qualifications” means all materials and
  468  documents prepared by the department to solicit the following
  469  from offerors:
  470         1. Statements of qualifications.
  471         2. Proposals to enter into a management agreement.
  472         (c) “Selected offer” means the final offer of an offeror
  473  that is the preliminary selection to be the manager for the
  474  lottery under subsection (12).
  475         (3)(a) This section contains full and complete authority
  476  for a management agreement between the department and a manager
  477  and any rules adopted thereunder. No law, procedure, proceeding,
  478  publication, notice, consent, approval, order, or act by the
  479  department or any other officer, department, agency, or
  480  instrumentality of the state or any political subdivision is
  481  required for the department to enter into a management agreement
  482  under this section.
  483         (b) This section contains full and complete authority for
  484  the department to approve any subcontracts entered into by a
  485  manager under the terms of a management agreement.
  486         (4) Subject to the other provisions of this section, the
  487  department may enter into a management agreement with a manager
  488  for a term not to exceed 30 years.
  489         (5) The department may not enter into a management
  490  agreement that authorizes a manager to operate any of the
  491  following games or a game simulating any of the following games:
  492         (a) Video lottery games.
  493         (b) Pari-mutuel wagering on any form of racing.
  494         (c) A game in which winners are selected on the results of
  495  a race or sporting event.
  496         (d) Any other game commonly considered to be a form of
  497  gambling that is not a game or a variation of a game that the
  498  department operated before the management agreement is executed
  499  or is operating on the date the management agreement is
  500  executed.
  501         (6)(a) The management agreement must establish a
  502  substantial benchmark amount. The management agreement must
  503  require the manager to make an initial payment to the department
  504  on the effective date of the management agreement in an amount
  505  that exceeds the benchmark amount established in the management
  506  agreement.
  507         (b) The initial payment required under paragraph (a) shall
  508  be deposited as provided in s. 24.121.
  509         (c) If the manager fails to make any payment under this
  510  section by the due date of the payment, the management agreement
  511  is terminated.
  512         (7)(a) The management agreement must require that all
  513  lottery proceeds initially be directly deposited with the state.
  514  The state shall provide sums due to the manager under the
  515  agreement only after all of the manager’s obligations to the
  516  state have been satisfied.
  517         (b) The state shall retain an annual amount at least equal
  518  to the lottery proceeds for the last fiscal year preceding the
  519  agreement beginning on a date specified in the management
  520  agreement and occurring during the first year after the
  521  execution of the management agreement. For the purposes of this
  522  subsection, such annual amount shall be referred to as the
  523  “state annuity.” The state annuity received under this
  524  subsection shall be deposited as provided in s. 24.121.
  525         (c) The management agreement must include the following
  526  provisions to ensure that the manager does not earn excess
  527  revenue under the management agreement:
  528         1. The Office of Policy and Budget in the Executive Office
  529  of the Governor shall calculate the percentage rate of average
  530  annual growth in gross revenue earned by the department during
  531  the last 5 full state fiscal years preceding the commencement of
  532  the management agreement. For purposes of this subsection, this
  533  percentage is referred to as the “baseline growth percentage.“
  534         2. Beginning with the second full state fiscal year after
  535  the execution of the management agreement, the Office of Policy
  536  and Budget in the Executive Office of the Governor shall for
  537  each state fiscal year calculate the growth, expressed as a
  538  percentage, in gross revenue earned by the manager under the
  539  management agreement, as compared to the preceding state fiscal
  540  year.
  541         3. The department shall establish an excess payments
  542  account for purposes of this paragraph. Any earnings from money
  543  in the excess payments account accrue to the account. Money in
  544  the excess payments account may be used only to make payments to
  545  a manager as required by this paragraph and to receive payments
  546  from a manager as required by this paragraph.
  547         4. If the percentage calculated by the Office of Policy and
  548  Budget in the Executive Office of the Governor under
  549  subparagraph 2. for a particular state fiscal year exceeds the
  550  baseline growth percentage, the manager must make an additional
  551  payment to the department. The amount of the additional payment
  552  for the state fiscal year is equal to the gross revenue earned
  553  by the manager from lottery tickets in the state fiscal year
  554  multiplied by one-half the difference between the percentage
  555  calculated by the Office of Policy and Budget in the Executive
  556  Office of the Governor under subparagraph 2. for the state
  557  fiscal year and the baseline growth percentage. The department
  558  shall deposit any additional payment made by the manager under
  559  this subparagraph into the excess payments account.
  560         5. If the baseline growth percentage exceeds the percentage
  561  calculated by the Office of Policy and Budget in the Executive
  562  Office of the Governor under subparagraph 2. for a particular
  563  state fiscal year, the department must make a payment to the
  564  manager from the excess payments account. However, the
  565  department is required to make a payment to the manager only if
  566  the excess payments account has a positive balance. The amount
  567  of the payment by the department for the state fiscal year is
  568  equal to the lesser of:
  569         a. The result of the gross revenue earned by the manager
  570  from lottery tickets in the state fiscal year multiplied by one
  571  half the difference between the baseline growth percentage and
  572  the percentage calculated by the Office of Policy and Budget in
  573  the Executive Office of the Governor under subparagraph 2. for
  574  the state fiscal year; or
  575         b. The balance in the excess payments account.
  576         6. The management agreement must specify the time by which
  577  a payment required under this paragraph shall be made.
  578         7. If at the expiration or termination of the management
  579  agreement there is money remaining in the excess payments
  580  account, it shall be retained by the department and deposited as
  581  provided in s. 24.121.
  582         (8) A management agreement must contain the following:
  583         (a) The original term of the management agreement.
  584         (b) A requirement that the manager locate its principal
  585  office within this state.
  586         (c) So long as the manager complies with all the conditions
  587  of the agreement under the oversight of the department, the
  588  manager shall perform its duties and obligations with respect to
  589  management of the operation of the lottery, including the
  590  following:
  591         1. The right to use, or ownership of, equipment and other
  592  assets used in the operation of the lottery.
  593         2. The rights and obligations under contracts with
  594  retailers and vendors.
  595         3. The implementation of a comprehensive security program
  596  by the manager.
  597         4. The implementation of a comprehensive system of internal
  598  audits.
  599         5. The implementation of a program by the manager to curb
  600  compulsive gambling by persons playing the lottery.
  601         6. A system for determining the following:
  602         a. The type of lottery games to be conducted.
  603         b. The method of selecting winning tickets.
  604         c. The manner of payment of prizes to holders of winning
  605  tickets.
  606         d. The frequency of drawings of winning tickets.
  607         e. The method to be used in selling tickets.
  608         f. A system for verifying the validity of tickets claimed
  609  to be winning tickets.
  610         g. The basis upon which retailer commissions are
  611  established by the manager.
  612         h. Minimum payouts.
  613         7. A requirement that advertising and promotion must be
  614  consistent with the dignity and integrity of the state.
  615         (d) Guidelines to ensure that advertising and promoting of
  616  the lottery by the manager are not misleading and fairly balance
  617  the potential benefits and the potential costs and risks of
  618  playing lottery games.
  619         (e) A code of ethics for the manager’s officers and
  620  employees.
  621         (f) A requirement that the department monitor the manager’s
  622  practices and take action that the department considers
  623  appropriate to ensure that the manager is in compliance with the
  624  terms of the management agreement, while allowing the manager,
  625  unless specifically prohibited by law or the management
  626  agreement, to negotiate and sign its own contracts with vendors.
  627         (g) A provision requiring the manager to periodically file
  628  appropriate financial statements in a form and manner acceptable
  629  to the department.
  630         (h) Cash reserve requirements.
  631         (i) Procedural requirements for obtaining approval by the
  632  department when a management agreement or an interest in a
  633  management agreement is sold, assigned, transferred, or pledged
  634  as collateral to secure financing. A management agreement or an
  635  interest in a management agreement may not be sold, assigned,
  636  transferred, or pledged as collateral to secure financing
  637  without the approval of the department.
  638         (j) Grounds for termination of the management agreement by
  639  the department or the manager.
  640         (k) Procedures for amendment of the agreement.
  641         (l) A provision prohibiting the department from entering
  642  into another management agreement under this section as long as
  643  the original management agreement has not been terminated.
  644         (m) The transition of rights and obligations, including any
  645  associated equipment or other assets used in the operation of
  646  the lottery, from the manager to any successor manager of the
  647  lottery, including the department, following the termination of
  648  or foreclosure upon the management agreement.
  649         (n) Ownership of all copyrights, trademarks, and service
  650  marks by the department in the name of the state and that any
  651  use of them by the manager shall only be for the purpose of
  652  fulfilling its obligations under the management agreement during
  653  the term of the agreement.
  654         (o) Minority participation as provided in s. 24.113.
  655         (9)(a) The manager shall undergo a complete investigation
  656  every 3 years by the department to determine whether the manager
  657  remains in compliance with this chapter and the management
  658  agreement.
  659         (b) The manager shall bear the cost of an investigation or
  660  reinvestigation of the manager under this subsection.
  661         (10)(a) Before the department enters into a management
  662  agreement pursuant to this section, the secretary, as provided
  663  in subsection (17), may retain an advisor or advisors to assess
  664  the fiscal feasibility of such an agreement and help determine
  665  whether to proceed. Such an advisor may also be retained by the
  666  department to represent the department in the request for
  667  qualifications process, if one is commenced. If the secretary
  668  decides to pursue the possibility of a management agreement, a
  669  request for qualifications must be issued as set forth in this
  670  section. A request for qualifications for a management agreement
  671  may be issued in one or more phases.
  672         (b) A request for qualifications must include the
  673  following:
  674         1. The factors or criteria that will be used in evaluating
  675  an offeror’s statement of qualifications and proposal.
  676         2. A statement that a proposal must be accompanied by
  677  evidence of the offeror’s financial responsibility.
  678         3. A statement concerning whether discussions may be
  679  conducted with the offerors for the purpose of clarification to
  680  ensure full understanding of and responsiveness to the
  681  solicitation requirements.
  682         4. A statement concerning any other information to be
  683  considered in evaluating the offeror’s qualifications and
  684  proposal.
  685         (c) Notice of a request for qualifications shall be
  686  published twice at least 7 calendar days apart, with the second
  687  publication made at least 7 days before any initial submission
  688  is due.
  689         (d) As provided in a request for qualifications,
  690  discussions may be conducted with the offerors for the purpose
  691  of clarification to ensure full understanding of and
  692  responsiveness to the solicitation requirements.
  693         (11) The contents of proposals are competitive sealed
  694  replies in response to an invitation to negotiate for purposes
  695  of s. 119.071(1)(b) and are exempt from s. 119.07(1) and s.
  696  24(a), Art. I of the State Constitution until disclosure of the
  697  contents that are not otherwise exempt under s. 119.071 or other
  698  law is required under s. 119.071(1)(b).
  699         (12)(a) The department may negotiate with one or more
  700  offerors the department determines are responsible and
  701  reasonably capable of managing the lottery and may seek to
  702  obtain a final offer from one or more of those offerors.
  703         (b) The department shall consider the statement of
  704  qualifications and the proposals to enter into a management
  705  agreement that are submitted in response to a request for
  706  qualifications in making a determination under this section,
  707  including the following as they apply to the offeror and its
  708  partners, if any:
  709         1. Expertise, qualifications, competence, skills, and plan
  710  to perform obligations under the management agreement in
  711  accordance with the management agreement.
  712         2. Financial strength, including capitalization and
  713  available financial resources.
  714         3. Experience in operating government-authorized lotteries
  715  and gaming and other similar projects and the quality of any
  716  past or present performance on similar or equivalent
  717  engagements.
  718         4. Integrity, background, and reputation.
  719         (c) The requirements set forth in paragraph (b) also apply
  720  to the approval of any successor manager.
  721         (13)(a) After the final offers from offerors have been
  722  negotiated under subsection (12), the department shall:
  723         1. Make a preliminary selection of an offeror as the
  724  manager for the lottery; or
  725         2. Terminate the request for qualifications process.
  726         (b) If the department makes a preliminary selection of the
  727  manager under this subsection, the department shall schedule a
  728  public hearing on the preliminary selection and provide public
  729  notice of the hearing at least 7 days before the hearing. The
  730  notice must include the following:
  731         1. The date, time, and place of the hearing.
  732         2. The subject matter of the hearing.
  733         3. A brief description of the management agreement to be
  734  awarded.
  735         4. The identity of the offeror that has been preliminarily
  736  selected as the manager.
  737         5. The address and telephone number of the department.
  738         6. A statement indicating that, subject to subsection (11),
  739  and except for those parts that are confidential under s.
  740  119.071 or other applicable law, the selected offer and an
  741  explanation of the basis upon which the preliminary selection
  742  was made are available for public inspection and copying at the
  743  principal office of the department during regular business hours
  744  and, to the extent feasible, on the Internet.
  745         (c) Subject to subsection (11), and except for those parts
  746  that are confidential under s. 119.071 or other applicable law,
  747  the selected offer and a written explanation of the basis upon
  748  which the preliminary selection was made shall be made available
  749  for inspection and copying in accordance with s. 119.07 and, to
  750  the extent feasible, on the Internet at least 7 calendar days
  751  before the hearing scheduled under this section.
  752         (d) At the hearing, the department shall allow the public
  753  to be heard on the preliminary selection.
  754         (14)(a) After the hearing required under subsection (13),
  755  the department shall determine if a management agreement should
  756  be entered into with the offeror that submitted the selected
  757  offer. If the department makes a favorable determination, the
  758  department shall submit the determination to the Governor.
  759         (b) After review of the department’s determination, the
  760  Governor may accept or reject the department’s determination. If
  761  the Governor accepts the department’s determination, the
  762  Governor shall designate the offeror who submitted the selected
  763  offer as the manager for the lottery.
  764         (c) After the Governor designates the manager, the
  765  department may execute a management agreement with the
  766  designated manager.
  767         (15) The manager may finance its obligations with respect
  768  to the lottery and the management agreement in the amounts and
  769  upon the terms and conditions determined by the manager.
  770  However, any bonds, debt, other securities, or other financing
  771  issued for the purposes of this section shall not be considered
  772  to constitute a debt of the state or any political subdivision
  773  of the state or a pledge of the faith and credit of the state or
  774  any political subdivision of the state.
  775         (16) An action to contest the validity of a management
  776  agreement entered into under this section may not be brought
  777  after the 15th day after the publication of the notice of the
  778  designation of the manager under the management agreement as
  779  provided in subsection (14).
  780         (17)(a) The department must use appropriate experts and
  781  professionals needed to conduct a competitive bidding proceeding
  782  as required under this section and may use the services of
  783  outside professionals to the extent necessary to carry out its
  784  obligations under this section.
  785         (b) The department may exercise any powers provided under
  786  this section in participation or cooperation with any other
  787  governmental entity and enter into any contracts to facilitate
  788  that participation or cooperation without compliance with any
  789  other statute.
  790         (c) The department may make and enter into all contracts
  791  and agreements necessary or incidental to the performance of the
  792  department’s duties under this section and the execution of the
  793  department’s powers under this section. These contracts or
  794  agreements are not subject to any approval by any other
  795  governmental entity and may be for any term of years within the
  796  time period of the management agreement under subsection (4) and
  797  contain any terms that are considered reasonable by the
  798  department.
  799         (d) The department may make and enter into all contracts
  800  and agreements with a state agency necessary or incidental to
  801  the performance of the duties and the execution of the powers
  802  granted to the department or the state agency in accordance with
  803  this section or the management agreement. These contracts or
  804  agreements are not subject to approval by any other governmental
  805  entity and may be for any term of years and contain any terms
  806  that are considered reasonable by the department or the state
  807  agency.
  808         (18)(a) The department may not sell the authorization to
  809  operate the lottery.
  810         (b) Any tangible personal property used exclusively in
  811  connection with the lottery that is owned by the department and
  812  leased to the manager shall be owned by the department in the
  813  name of the state and shall be considered to be public property
  814  devoted to an essential public and governmental function.
  815         (19) The department may exercise any of its powers under
  816  this chapter or any other law as necessary or desirable for the
  817  execution of the department’s powers under this section.
  818         (20) Neither this section nor any management agreement
  819  entered into under this section prohibits the Legislature from
  820  authorizing forms of gambling that are not in direct competition
  821  with the lottery.
  822         Section 11. Section 24.112, Florida Statutes, is amended to
  823  read:
  824         24.112 Retailers of lottery tickets.—
  825         (1) If the department does not enter into a management
  826  agreement, the department shall adopt promulgate rules
  827  specifying the terms and conditions for contracting with
  828  retailers who will best serve the public interest and promote
  829  the sale of lottery tickets.
  830         (2) If the department does not enter into a management
  831  agreement, in the selection of retailers, the department shall
  832  consider factors such as financial responsibility, integrity,
  833  reputation, accessibility of the place of business or activity
  834  to the public, security of the premises, the sufficiency of
  835  existing retailers to serve the public convenience, and the
  836  projected volume of the sales for the lottery game involved. In
  837  the consideration of these factors, the department may require
  838  the information it deems necessary of any person applying for
  839  authority to act as a retailer. However, the department may not
  840  establish a limitation upon the number of retailers and shall
  841  make every effort to allow small business participation as
  842  retailers. It is the intent of the Legislature that retailer
  843  selections be based on business considerations and the public
  844  convenience and that retailers be selected without regard to
  845  political affiliation.
  846         (3) If the department does not enter into a management
  847  agreement, the department may shall not contract with any person
  848  as a retailer who:
  849         (a) Is less than 18 years of age.
  850         (b) Is engaged exclusively in the business of selling
  851  lottery tickets; however, this paragraph shall not preclude the
  852  department from selling lottery tickets.
  853         (c) Has been convicted of, or entered a plea of guilty or
  854  nolo contendere to, a felony committed in the preceding 10
  855  years, regardless of adjudication, unless the department
  856  determines that:
  857         1. The person has been pardoned or the person’s civil
  858  rights have been restored;
  859         2. Subsequent to such conviction or entry of plea the
  860  person has engaged in the kind of law-abiding commerce and good
  861  citizenship that would reflect well upon the integrity of the
  862  lottery; or
  863         3. If the person is a firm, association, partnership,
  864  trust, corporation, or other entity, the person has terminated
  865  its relationship with the individual whose actions directly
  866  contributed to the person’s conviction or entry of plea.
  867         (4) If the department does not enter into a management
  868  agreement, the department shall issue a certificate of authority
  869  to each person with whom it contracts as a retailer for purposes
  870  of display pursuant to subsection (6). The issuance of the
  871  certificate does shall not confer upon the retailer any right
  872  apart from that specifically granted in the contract. The
  873  authority to act as a retailer is shall not be assignable or
  874  transferable.
  875         (5) Any contract executed by the department under pursuant
  876  to this section shall specify the reasons for any suspension or
  877  termination of the contract by the department, including, but
  878  not limited to:
  879         (a) Commission of a violation of this chapter act or rule
  880  adopted pursuant thereto.
  881         (b) Failure to accurately account for lottery tickets,
  882  revenues, or prizes as required by the department.
  883         (c) Commission of any fraud, deceit, or misrepresentation.
  884         (d) Insufficient sale of tickets.
  885         (e) Conduct prejudicial to public confidence in the
  886  lottery.
  887         (f) Any material change in any matter considered by the
  888  department in executing the contract with the retailer.
  889         (6) Every retailer shall post and keep conspicuously
  890  displayed in a location on the premises accessible to the public
  891  its certificate of authority and, with respect to each game, a
  892  statement supplied by the department or the manager of the
  893  estimated odds of winning some prize for the game.
  894         (7) No contract with a retailer shall authorize the sale of
  895  lottery tickets at more than one location, and a retailer may
  896  sell lottery tickets only at the location stated on the
  897  certificate of authority.
  898         (8) If the department does not enter into a management
  899  agreement, with respect to any retailer whose rental payments
  900  for premises are contractually computed, in whole or in part, on
  901  the basis of a percentage of retail sales, and where such
  902  computation of retail sales is not explicitly defined to include
  903  sales of tickets in a state-operated lottery, the compensation
  904  received by the retailer from the department shall be deemed to
  905  be the amount of the retail sale for the purposes of such
  906  contractual compensation.
  907         (9) If the department does not enter into a management
  908  agreement:
  909         (a) The department may require every retailer to post an
  910  appropriate bond as determined by the department, using an
  911  insurance company acceptable to the department, in an amount not
  912  to exceed twice the average lottery ticket sales of the retailer
  913  for the period within which the retailer is required to remit
  914  lottery funds to the department. For the first 90 days of sales
  915  of a new retailer, the amount of the bond may not exceed twice
  916  the average estimated lottery ticket sales for the period within
  917  which the retailer is required to remit lottery funds to the
  918  department. This paragraph does shall not apply to lottery
  919  tickets that which are prepaid by the retailer.
  920         (b) In lieu of such bond, the department may purchase
  921  blanket bonds covering all or selected retailers or may allow a
  922  retailer to deposit and maintain with the Chief Financial
  923  Officer securities that are interest bearing or accruing and
  924  that, with the exception of those specified in subparagraphs 1.
  925  and 2., are rated in one of the four highest classifications by
  926  an established nationally recognized investment rating service.
  927  Securities eligible under this paragraph shall be limited to:
  928         1. Certificates of deposit issued by solvent banks or
  929  savings associations organized and existing under the laws of
  930  this state or under the laws of the United States and having
  931  their principal place of business in this state.
  932         2. United States bonds, notes, and bills for which the full
  933  faith and credit of the government of the United States is
  934  pledged for the payment of principal and interest.
  935         3. General obligation bonds and notes of any political
  936  subdivision of the state.
  937         4. Corporate bonds of any corporation that is not an
  938  affiliate or subsidiary of the depositor.
  939  
  940  Such securities shall be held in trust and shall have at all
  941  times a market value at least equal to an amount required by the
  942  department.
  943         (10) Every contract entered into by the department pursuant
  944  to this section shall contain a provision for payment of
  945  liquidated damages to the department for any breach of contract
  946  by the retailer.
  947         (11) The department shall establish procedures by which
  948  each retailer shall account for all tickets sold by the retailer
  949  and account for all funds received by the retailer from such
  950  sales. The contract with each retailer shall include provisions
  951  relating to the sale of tickets, payment of moneys to the
  952  department, reports, service charges, and interest and
  953  penalties, if necessary, as the department shall deem
  954  appropriate.
  955         (12) No payment by a retailer to the department for tickets
  956  shall be in cash. All such payments shall be in the form of a
  957  check, bank draft, electronic fund transfer, or other financial
  958  instrument authorized by the secretary.
  959         (13) Each retailer shall provide accessibility for disabled
  960  persons on habitable grade levels. This subsection does not
  961  apply to a retail location that which has an entrance door
  962  threshold more than 12 inches above ground level. As used herein
  963  and for purposes of this subsection only, the term
  964  “accessibility for disabled persons on habitable grade levels”
  965  means that retailers shall provide ramps, platforms, aisles and
  966  pathway widths, turnaround areas, and parking spaces to the
  967  extent these are required for the retailer’s premises by the
  968  particular jurisdiction where the retailer is located.
  969  Accessibility shall be required to only one point of sale of
  970  lottery tickets for each lottery retailer location. The
  971  requirements of this subsection shall be deemed to have been met
  972  if, in lieu of the foregoing, disabled persons can purchase
  973  tickets from the retail location by means of a drive-up window,
  974  provided the hours of access at the drive-up window are not less
  975  than those provided at any other entrance at that lottery
  976  retailer location. Inspections for compliance with this
  977  subsection shall be performed by those enforcement authorities
  978  responsible for enforcement pursuant to s. 553.80 in accordance
  979  with procedures established by those authorities. Those
  980  enforcement authorities shall provide to the Department of the
  981  Lottery a certification of noncompliance for any lottery
  982  retailer not meeting such requirements.
  983         (14) The secretary may, after filing with the Department of
  984  State his or her manual signature certified by the secretary
  985  under oath, execute or cause to be executed contracts between
  986  the department and retailers by means of engraving, imprinting,
  987  stamping, or other facsimile signature.
  988         Section 12. Section 24.113, Florida Statutes, is amended to
  989  read:
  990         24.113 Minority participation.—
  991         (1) It is the intent of the Legislature that the department
  992  or the manager, if any, encourage participation by minority
  993  business enterprises as defined in s. 288.703. Accordingly, 15
  994  percent of the retailers shall be minority business enterprises
  995  as defined in s. 288.703(2); however, no more than 35 percent of
  996  such retailers shall be owned by the same type of minority
  997  person, as defined in s. 288.703(3). The department or the
  998  manager, if any, is encouraged to meet the minority business
  999  enterprise procurement goals set forth in s. 287.09451 in the
 1000  procurement of commodities, contractual services, construction,
 1001  and architectural and engineering services. This section shall
 1002  not preclude or prohibit a minority person from competing for
 1003  any other retailing or vending agreement awarded by the
 1004  department or the manager.
 1005         (2) The department or the manager, if any, shall is
 1006  directed to undertake training programs and other educational
 1007  activities to enable minority persons to compete for such
 1008  contracts on an equal basis.
 1009         Section 13. Section 24.114, Florida Statutes, is amended to
 1010  read:
 1011         24.114 Bank deposits and control of lottery transactions.—
 1012         (1) All moneys received by each retailer from the operation
 1013  of the state lottery, including, but not limited to, all ticket
 1014  sales, interest, gifts, and donations, less the amount retained
 1015  as compensation for the sale of the tickets and the amount paid
 1016  out as prizes, shall be remitted to the department or deposited
 1017  in a qualified public depository, as defined in s. 280.02, as
 1018  directed by the department. The department shall have the
 1019  responsibility for all administrative functions related to the
 1020  receipt of funds. The department may also require each retailer
 1021  to file with the department reports of the retailer’s receipts
 1022  and transactions in the sale of lottery tickets in such form and
 1023  containing such information as the department may require. The
 1024  department may require any person, including a qualified public
 1025  depository, to perform any function, activity, or service in
 1026  connection with the operation of the lottery as it may deem
 1027  advisable pursuant to this chapter act and rules of the
 1028  department, and such functions, activities, or services shall
 1029  constitute lawful functions, activities, and services of such
 1030  person.
 1031         (2) The department may require retailers to establish
 1032  separate electronic funds transfer accounts for the purpose of
 1033  receiving moneys from ticket sales, making payments to the
 1034  department, and receiving payments from the department.
 1035         (3) Each retailer is liable to the department for any and
 1036  all tickets accepted or generated by any employee or
 1037  representative of that retailer, and the tickets shall be deemed
 1038  to have been purchased by the retailer unless returned to the
 1039  department within the time and in the manner prescribed by the
 1040  department. All moneys received by retailers from the sale of
 1041  lottery tickets, less the amount retained as compensation for
 1042  the sale of tickets and the amount paid out as prizes by the
 1043  retailer, shall be held in trust prior to delivery to the
 1044  department or electronic transfer to the Operating Trust Fund.
 1045         Section 14. Section 24.115, Florida Statutes, is amended to
 1046  read:
 1047         24.115 Payment of prizes.—
 1048         (1) The department shall promulgate rules to establish a
 1049  system of verifying the validity of tickets claimed to win
 1050  prizes and to effect payment of such prizes; however, the
 1051  following shall apply whether the department does or does not
 1052  enter into a management agreement:
 1053         (a) The right of any person to a prize, other than a prize
 1054  that is payable in installments over time, is not assignable.
 1055  However, any prize, to the extent that it has not been assigned
 1056  or encumbered pursuant to s. 24.1153, may be paid to the estate
 1057  of a deceased prize winner or to a person designated pursuant to
 1058  an appropriate court order. A prize that is payable in
 1059  installments over time is assignable, but only pursuant to an
 1060  appropriate court order as provided in s. 24.1153.
 1061         (b) No prize shall be paid to any person under the age of
 1062  18 years unless the winning ticket was lawfully purchased and
 1063  made a gift to the minor. In such case, the department or the
 1064  manager, if a management agreement is in force, shall direct
 1065  payment to an adult member of the minor’s family or the legal
 1066  guardian of the minor as custodian for the minor. The person
 1067  named as custodian shall have the same powers and duties as
 1068  prescribed for a custodian pursuant to chapter 710, the Florida
 1069  Uniform Transfers to Minors Act.
 1070         (c) No prize may be paid arising from claimed tickets that
 1071  are stolen, counterfeit, altered, fraudulent, unissued, produced
 1072  or issued in error, unreadable, not received or not recorded by
 1073  the department or the manager, if a management agreement is in
 1074  force, by applicable deadlines, lacking in captions that confirm
 1075  and agree with the lottery play symbols as appropriate to the
 1076  lottery game involved, or not in compliance with such additional
 1077  specific rules and public or confidential validation and
 1078  security tests of the department or the manager, if a management
 1079  agreement is in force, appropriate to the particular lottery
 1080  game involved.
 1081         (d) No particular prize in any lottery game may be paid
 1082  more than once, and in the event of a binding determination that
 1083  more than one claimant is entitled to a particular prize, the
 1084  sole remedy of such claimants is the award to each of them of an
 1085  equal share in the prize.
 1086         (e) For the convenience of the public, retailers may be
 1087  authorized to pay winners amounts less than $600 after
 1088  performing validation procedures on their premises appropriate
 1089  to the lottery game involved.
 1090         (f) Holders of tickets shall have the right to claim prizes
 1091  for 180 days after the drawing or the end of the lottery game or
 1092  play in which the prize was won; except that with respect to any
 1093  game in which the player may determine instantly if he or she
 1094  has won or lost, such right shall exist for 60 days after the
 1095  end of the lottery game. If a valid claim is not made for a
 1096  prize within the applicable period, the prize shall constitute
 1097  an unclaimed prize for purposes of subsection (2).
 1098         (g) No prize shall be paid upon a ticket purchased or sold
 1099  in violation of this chapter act or to any person who is
 1100  prohibited from purchasing a lottery ticket pursuant to this
 1101  chapter act. Any such prize shall constitute an unclaimed prize
 1102  for purposes of subsection (2).
 1103         (2)(a) Eighty percent of all unclaimed prize money shall be
 1104  deposited in the Educational Enhancement Trust Fund consistent
 1105  with the provisions of s. 24.121(2). Subject to appropriations
 1106  provided in the General Appropriations Act, these funds may be
 1107  used to match private contributions received under the
 1108  postsecondary matching grant programs established in ss.
 1109  1011.32, 1011.85, 1011.94, and 1013.79.
 1110         (b) The remaining 20 percent of unclaimed prize money shall
 1111  be added to the pool from which future prizes are to be awarded
 1112  or used for special prize promotions.
 1113         (3) The department or the manager, if a management
 1114  agreement is in force, shall be discharged of all liability upon
 1115  payment of a prize.
 1116         (4) It is the responsibility of the appropriate state
 1117  agency and of the judicial branch to identify to the department
 1118  or the manager, if a management agreement is in force, in the
 1119  form and format prescribed by the department or the manager,
 1120  persons owing an outstanding debt to any state agency or owing
 1121  child support collected through a court, including spousal
 1122  support or alimony for the spouse or former spouse of the
 1123  obligor if the child support obligation is being enforced by the
 1124  Department of Revenue. Prior to the payment of a prize of $600
 1125  or more to any claimant having such an outstanding obligation,
 1126  the department or the manager shall transmit the amount of the
 1127  debt to the agency claiming the debt and shall authorize payment
 1128  of the balance to the prize winner after deduction of the debt.
 1129  If a prize winner owes multiple debts subject to offset under
 1130  this subsection and the prize is insufficient to cover all such
 1131  debts, the amount of the prize shall be transmitted first to the
 1132  agency claiming that past due child support is owed. If a
 1133  balance of lottery prize remains after payment of past due child
 1134  support, the remaining lottery prize amount shall be transmitted
 1135  to other agencies claiming debts owed to the state, pro rata,
 1136  based upon the ratio of the individual debt to the remaining
 1137  debt owed to the state.
 1138         Section 15. Section 24.1153, Florida Statutes, is amended
 1139  to read:
 1140         24.1153 Assignment of prizes payable in installments.—
 1141         (1) The right of any person to receive payments under a
 1142  prize that is paid in installments over time by the department
 1143  or the manager, if a management agreement is in force, may be
 1144  voluntarily assigned, in whole or in part, if the assignment is
 1145  made to a person or entity designated pursuant to an order of a
 1146  court of competent jurisdiction located in the judicial district
 1147  where the assigning prize winner resides or where the
 1148  headquarters of the department is located or where in the state
 1149  the headquarters of the manager is located, if a management
 1150  agreement is in force. A court may issue an order approving a
 1151  voluntary assignment and directing the department or the manager
 1152  to make prize payments in whole or in part to the designated
 1153  assignee, if the court finds that all of the following
 1154  conditions have been met:
 1155         (a) The assignment is in writing, is executed by the
 1156  assignor, and is, by its terms, subject to the laws of this
 1157  state.
 1158         (b) The purchase price being paid for the payments being
 1159  assigned represents a present value of the payments being
 1160  assigned, discounted at an annual rate that does not exceed the
 1161  state’s usury limit for loans.
 1162         (c) The assignor provides a sworn affidavit attesting that
 1163  he or she:
 1164         1. Is of sound mind, is in full command of his or her
 1165  faculties, and is not acting under duress;
 1166         2. Has been advised regarding the assignment by his or her
 1167  own independent legal counsel, who is unrelated to and is not
 1168  being compensated by the assignee or any of the assignee’s
 1169  affiliates, and has received independent financial or tax advice
 1170  concerning the effects of the assignment from a lawyer or other
 1171  professional who is unrelated to and is not being compensated by
 1172  the assignee or any of the assignee’s affiliates;
 1173         3. Understands that he or she will not receive the prize
 1174  payments or portions thereof for the years assigned;
 1175         4. Understands and agrees that with regard to the assigned
 1176  payments the department or the manager and its officials and
 1177  employees will have no further liability or responsibility to
 1178  make the assigned payments to him or her;
 1179         5. Has been provided with a one-page written disclosure
 1180  statement setting forth, in bold type of not less than 14
 1181  points, the payments being assigned, by amounts and payment
 1182  dates; the purchase price being paid; the rate of discount to
 1183  present value, assuming daily compounding and funding on the
 1184  contract date; and the amount, if any, of any origination or
 1185  closing fees that will be charged to him or her; and
 1186         6. Was advised in writing, at the time he or she signed the
 1187  assignment contract, that he or she had the right to cancel the
 1188  contract, without any further obligation, within 3 business days
 1189  following the date on which the contract was signed.
 1190         (d) Written notice of the proposed assignment and any court
 1191  hearing concerning the proposed assignment is provided to the
 1192  department’s or the manager’s counsel at least 10 days prior to
 1193  any court hearing. The department or the manager is not required
 1194  to appear in or be named as a party to any such action seeking
 1195  judicial confirmation of an assignment under this section, but
 1196  may intervene as of right in any such proceeding.
 1197         (2) A certified copy of a court order approving a voluntary
 1198  assignment must be provided to the department or the manager no
 1199  later than 14 days before the date on which the payment is to be
 1200  made.
 1201         (3) In accordance with the provisions of s. 24.115(4), a
 1202  voluntary assignment may not include or cover payments or
 1203  portions of payments that are subject to offset on account of a
 1204  defaulted or delinquent child support obligation or on account
 1205  of a debt owed to a state agency. Each court order issued under
 1206  subsection (1) shall provide that any delinquent child support
 1207  obligations of the assigning prize winner and any debts owed to
 1208  a state agency by the assigning prize winner, as of the date of
 1209  the court order, shall be offset by the department or the
 1210  manager first against remaining payments or portions thereof due
 1211  the prize winner and then against payments due the assignee.
 1212         (4) The department or the manager, and its respective
 1213  officials and employees, shall be discharged of all liability
 1214  upon payment of an assigned prize under this section.
 1215         (5) The department or the manager may establish a
 1216  reasonable fee to defray any administrative expenses associated
 1217  with assignments made under this section, including the cost to
 1218  the department or the manager of any processing fee that may be
 1219  imposed by a private annuity provider. The fee amount shall
 1220  reflect the direct and indirect costs associated with processing
 1221  such assignments.
 1222         (6) If at any time the Internal Revenue Service or a court
 1223  of competent jurisdiction issues a determination letter, revenue
 1224  ruling, other public ruling of the Internal Revenue Service, or
 1225  published decision to any state lottery or prize winner of any
 1226  state lottery declaring that the voluntary assignment of prizes
 1227  will affect the federal income tax treatment of prize winners
 1228  who do not assign their prizes, the secretary of the department
 1229  shall immediately file a copy of that letter, ruling, or
 1230  published decision with the Secretary of State and the Office of
 1231  the State Courts Administrator. A court may not issue an order
 1232  authorizing a voluntary assignment under this section after the
 1233  date any such ruling, letter, or published decision is filed.
 1234         Section 16. Section 24.117, Florida Statutes, is amended to
 1235  read:
 1236         24.117 Unlawful sale of lottery tickets; penalty.—Any
 1237  person who knowingly:
 1238         (1) Sells a state lottery ticket when not authorized by the
 1239  department or this chapter act to engage in such sale;
 1240         (2) Sells a state lottery ticket to a minor; or
 1241         (3) Sells a state lottery ticket at any price other than
 1242  that established by the department;
 1243  
 1244  commits is guilty of a misdemeanor of the first degree,
 1245  punishable as provided in s. 775.082 or s. 775.083.
 1246         Section 17. Subsections (4) and (5) of section 24.118,
 1247  Florida Statutes, are amended to read:
 1248         24.118 Other prohibited acts; penalties.—
 1249         (4) BREACH OF CONFIDENTIALITY.—Any person who, with intent
 1250  to defraud or with intent to provide a financial or other
 1251  advantage to himself, herself, or another, knowingly and
 1252  willfully discloses any information relating to the lottery
 1253  designated as confidential and exempt from the provisions of s.
 1254  119.07(1) pursuant to this chapter commits act is guilty of a
 1255  felony of the first degree, punishable as provided in s.
 1256  775.082, s. 775.083, or s. 775.084.
 1257         (5) UNLAWFUL REPRESENTATION.—
 1258         (a) Any person who uses point-of-sale materials issued by
 1259  the department or the manager or otherwise holds himself or
 1260  herself out as a retailer without being authorized by the
 1261  department or the manager to act as a retailer commits is guilty
 1262  of a misdemeanor of the first degree, punishable as provided in
 1263  s. 775.082 or s. 775.083.
 1264         (b) Any person who without being authorized by the
 1265  department or the manager in writing uses the term “Florida
 1266  Lottery,” “State Lottery,” “Florida State Lottery,” or any
 1267  similar term in the title or name of any charitable or
 1268  commercial enterprise, product, or service commits is guilty of
 1269  a misdemeanor of the first degree, punishable as provided in s.
 1270  775.082 or s. 775.083.
 1271         Section 18. Subsections (1) and (2) of section 24.120,
 1272  Florida Statutes, are amended to read:
 1273         24.120 Financial matters; Operating Trust Fund; interagency
 1274  cooperation.—
 1275         (1) There is hereby created in the State Treasury an
 1276  Operating Trust Fund to be administered in accordance with
 1277  chapters 215 and 216 by the department. All money received by
 1278  the department which remains after payment of prizes and initial
 1279  compensation paid to retailers shall be deposited into the
 1280  Operating Trust Fund. All moneys in the trust fund are
 1281  appropriated to the department for the purposes specified in
 1282  this chapter act.
 1283         (2) Moneys available for the payment of prizes awarded by
 1284  the department, on a deferred basis shall be invested by the
 1285  State Board of Administration in accordance with a trust
 1286  agreement approved by the secretary and entered into between the
 1287  department and the State Board of Administration in accordance
 1288  with ss. 215.44-215.53. The investments authorized by this
 1289  subsection shall be done in a manner designed to preserve
 1290  capital and to ensure the integrity of the lottery disbursement
 1291  system by eliminating the risk of payment of funds when due and
 1292  to produce equal annual sums of money over the required term of
 1293  the investments.
 1294         Section 19. Subsections (1), (2), and (3) of section
 1295  24.121, Florida Statutes, are amended to read:
 1296         24.121 Allocation of revenues and expenditure of funds for
 1297  public education.—
 1298         (1) Variable percentages of the gross revenue from the sale
 1299  of online and instant lottery tickets shall be returned to the
 1300  public in the form of prizes paid by the department or retailers
 1301  as authorized by this chapter act. The variable percentages of
 1302  gross revenue from the sale of online and instant lottery
 1303  tickets returned to the public in the form of prizes shall be
 1304  established by the department in a manner designed to maximize
 1305  the amount of funds deposited under subsection (2).
 1306         (2) Each fiscal year, variable percentages of the gross
 1307  revenue from the sale of online and instant lottery tickets as
 1308  determined by the department consistent with subsection (1), and
 1309  other earned revenue up to the amount of the state annuity
 1310  requirement, excluding application processing fees, shall be
 1311  deposited in the Educational Enhancement Trust Fund, which is
 1312  hereby created in the State Treasury to be administered by the
 1313  Department of Education. If the department enters into a
 1314  management agreement, the proceeds received by the department
 1315  from the management agreement under s. 24.1115(7)(b) and (c)
 1316  shall be deposited in the Educational Enhancement Trust Fund,
 1317  with, at minimum, the greater of $400 million or one-third of
 1318  the funds deposited into the trust fund to be allocated to the
 1319  Florida Bright Futures Scholarship Program. The Department of
 1320  the Lottery shall transfer moneys to the Educational Enhancement
 1321  Trust Fund at least once each quarter. Funds in the Educational
 1322  Enhancement Trust Fund shall be used to the benefit of public
 1323  education in accordance with the provisions of this chapter act.
 1324  Notwithstanding any other provision of law, lottery revenues
 1325  transferred to the Educational Enhancement Trust Fund shall be
 1326  reserved as needed and used to meet the requirements of the
 1327  documents authorizing the bonds issued by the state pursuant to
 1328  s. 1013.68, s. 1013.70, or s. 1013.737 or distributed to school
 1329  districts for the Classrooms First Program as provided in s.
 1330  1013.68. Such lottery revenues are hereby pledged to the payment
 1331  of debt service on bonds issued by the state pursuant to s.
 1332  1013.68, s. 1013.70, or s. 1013.737. Debt service payable on
 1333  bonds issued by the state pursuant to s. 1013.68, s. 1013.70, or
 1334  s. 1013.737 shall be payable from, and is secured by a first
 1335  lien on, the first lottery revenues transferred to the
 1336  Educational Enhancement Trust Fund in each fiscal year. Amounts
 1337  distributable to school districts that request the issuance of
 1338  bonds pursuant to s. 1013.68(3) are hereby pledged to such bonds
 1339  pursuant to s. 11(d), Art. VII of the State Constitution.
 1340         (3) The funds remaining in the Operating Trust Fund after
 1341  transfers to the Educational Enhancement Trust Fund shall be
 1342  used for the payment of administrative expenses of the
 1343  department. These expenses shall include all costs incurred in
 1344  the department’s direct operation and administration of the
 1345  lottery or the management agreement and all costs resulting from
 1346  any contracts entered into for the purchase or lease of goods or
 1347  services required by the lottery, including, but not limited to:
 1348         (a) The compensation paid to retailers;
 1349         (b) The costs of supplies, materials, tickets, independent
 1350  audit services, independent studies, data transmission,
 1351  advertising, promotion, incentives, public relations,
 1352  communications, security, bonding for retailers, printing,
 1353  distribution of tickets, and reimbursing other governmental
 1354  entities for services provided to the lottery; and
 1355         (c) The costs of any other goods and services necessary for
 1356  effectuating the purposes of this chapter act.
 1357         Section 20. Section 24.122, Florida Statutes, is amended to
 1358  read:
 1359         24.122 Exemption from taxation; state preemption;
 1360  inapplicability of other laws.—
 1361         (1) This chapter act shall not be construed to authorize
 1362  any lottery except the lottery operated by the department or the
 1363  manager under pursuant to this chapter act.
 1364         (2) No state or local tax shall be imposed upon any prize
 1365  paid or payable under this chapter act or upon the sale of any
 1366  lottery ticket pursuant to this chapter act.
 1367         (3) All matters relating to the operation of the state
 1368  lottery are preempted to the state, and no county, municipality,
 1369  or other political subdivision of the state shall enact any
 1370  ordinance relating to the operation of the lottery authorized by
 1371  this chapter act. However, this subsection shall not prohibit a
 1372  political subdivision of the state from requiring a retailer to
 1373  obtain an occupational license for any business unrelated to the
 1374  sale of lottery tickets.
 1375         (4) Any state or local law providing any penalty,
 1376  disability, restriction, or prohibition for the possession,
 1377  manufacture, transportation, distribution, advertising, or sale
 1378  of any lottery ticket, including chapter 849, shall not apply to
 1379  the tickets of the state lottery operated pursuant to this
 1380  chapter act; nor shall any such law apply to the possession of a
 1381  ticket issued by any other government-operated lottery. In
 1382  addition, activities of the department under this chapter act
 1383  are exempt from the provisions of:
 1384         (a) Chapter 616, relating to public fairs and expositions.
 1385         (b) Chapter 946, relating to correctional work programs.
 1386         (c) Chapter 282, relating to communications and data
 1387  processing.
 1388         (d) Section 110.131, relating to other personal services.
 1389         Section 21. Section 24.123, Florida Statutes, is amended to
 1390  read:
 1391         24.123 Annual audit of financial records and reports.—
 1392         (1) The Legislative Auditing Committee shall contract with
 1393  a certified public accountant licensed pursuant to chapter 473
 1394  for an annual financial audit of the department. The certified
 1395  public accountant shall have no financial interest in any vendor
 1396  or manager with whom the department is under contract. The
 1397  certified public accountant shall present an audit report no
 1398  later than 7 months after the end of the fiscal year and shall
 1399  make recommendations to enhance the earning capability of the
 1400  state lottery or the management agreement and to improve the
 1401  efficiency of department operations. The certified public
 1402  accountant shall also perform a study and evaluation of internal
 1403  accounting controls and shall express an opinion on those
 1404  controls in effect during the audit period. The cost of the
 1405  annual financial audit shall be paid by the department.
 1406         (2) The Auditor General may at any time conduct an audit of
 1407  any phase of the operations of the state lottery or the
 1408  management agreement and shall receive a copy of the yearly
 1409  independent financial audit and any security report prepared
 1410  pursuant to s. 24.108.
 1411         (3) A copy of any audit performed pursuant to this section
 1412  shall be submitted to the secretary, the Governor, the President
 1413  of the Senate, the Speaker of the House of Representatives, and
 1414  members of the Legislative Auditing Committee.
 1415         Section 22. Subsection (1) of section 24.124, Florida
 1416  Statutes, is amended to read:
 1417         24.124 Responsibility for ticket accuracy; department,
 1418  retailer, and vendor liability.—
 1419         (1) Purchasers of online games tickets shall be responsible
 1420  for verifying the accuracy of their tickets, including the
 1421  number or numbers printed on the tickets. In the event of an
 1422  error, the ticket may be canceled and a replacement ticket
 1423  issued pursuant to rules adopted promulgated by the department
 1424  of the Lottery.
 1425         Section 23. This act shall take effect January 1, 2011.

Site Map
Session:   Bills ·   Calendars ·   Bound Journals ·   Citator ·   Search ·   Appropriations ·   Redistricting ·   Bill Information Reports
Committee Publications
Historical Information
Statutes:   Introduction ·   View Statutes ·   Search Statutes
Flsenate.gov
Disclaimer: The information on this system is unverified. The journals or printed bills of the respective chambers should be consulted for official purposes.    Copyright © 2000-2019 State of Florida.     Privacy Statement     Contact Us     Get Acrobat Reader