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

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