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

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