THE BILL ITSELF
HB 1401
State Lotteries
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A bill to be entitled
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An act relating to state lotteries; amending s.
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24.103, F.S.; defining the term "ball machine";
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revising the definitions of the terms "major
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procurement" and "retailer"; amending s. 24.105, F.S.;
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revising the powers and duties of the Department of
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the Lottery; amending s. 24.108, F.S.; revising the
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schedule for the department to have a certain report
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produced and submitted to the Governor and the
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Legislature; amending s. 24.111, F.S.; revising the
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information required to be provided to the department
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by persons who submit a bid, a proposal, or an offer
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to negotiate a contract for major procurement;
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amending s. 24.112, F.S.; revising the bond amount a
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retailer may be required to post for the period within
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which the retailer is required to remit lottery funds
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to the department; revising certain requirements
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relating to lottery vending machines; amending s.
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24.116, F.S.; authorizing the division's sworn law
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enforcement officers to purchase and present lottery
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tickets to a lottery retailer to claim a prize under
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certain circumstances; amending s. 24.118, F.S.;
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revising certain prohibitions and penalties relating
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to presenting a counterfeit or altered state lottery
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ticket; prohibiting certain false claims relating to
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state lottery tickets; prohibiting a lottery retailer
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or an employee thereof from using such position to
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knowingly facilitate, participate in, or otherwise
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assist in the theft of a lottery ticket from a retail
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establishment, patron, or customer; providing criminal
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penalties; defining the terms "patron" and "customer";
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providing an effective date.
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Be It Enacted by the Legislature of the State of Florida:
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Section 1. Present subsections (1) through (6) of section
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24.103, Florida Statutes, are redesignated as subsections (2)
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through (7), respectively, a new subsection (1) is added to that
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section, and present subsections (2) and (4) of that section are amended, to read:
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24.103 Definitions.—As used in this act:
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(1) "Ball machine" means a device that mechanically mixes
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a set of numbered balls and then randomly draws from that mix to
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determine the winning numbers for a specific game.
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(3)(2) "Major procurement" means a procurement for a
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contract for the printing of tickets for use in any lottery
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game, consultation services for the startup of the lottery, any
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goods or services involving the official recording for lottery
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game play purposes of a player's selections in any lottery game
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involving player selections, any goods or services involving the
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receiving of a player's selection directly from a player in any
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lottery game involving player selections, any goods or services
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involving the drawing, determination, or generation of winners
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in any lottery game, the security report services provided for
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in this act, or any goods and services relating to marketing and
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promotion which exceed a value of $25,000.
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(5)(4) "Retailer" means the department or a person who
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sells lottery tickets on behalf of the department pursuant to a
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contract.
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Section 2. Present paragraphs (i) and (j) of subsection
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(9) of section 24.105, Florida Statutes, are redesignated as
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paragraphs (j) and (k), respectively, a new paragraph (i) is
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added to that subsection, and paragraphs (a) and (d) of
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subsection (9) and subsection (17) of that section are amended, to read:
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24.105 Powers and duties of department.—The department
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shall:
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(9) Adopt rules governing the establishment and operation
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of the state lottery, including:
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(a) The type of lottery games to be conducted, except
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that:
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1. The No name of an elected official may not shall appear
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on the ticket or play slip of any lottery game or on any prize
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or on any instrument used for the payment of prizes, unless such
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prize is in the form of a state warrant.
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2. No Coins or currency may not shall be dispensed from
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any electronic computer terminal or device used in any lottery
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game.
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3. Other than as specifically provided in s. 24.112, a no
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terminal or device may not be used for any lottery game which
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may be operated solely by the player without the assistance of
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the retailer.
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(d) The method of selecting winning tickets. However, if a
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lottery game involves the use of a ball machine to conduct a
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drawing, the drawing must shall be public and witnessed by an
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accountant employed by an independent certified public
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accounting firm. The department shall inspect the equipment used
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in the drawing shall be inspected before and after the drawing.
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(i) The acceptable forms of payment for ticket purchases.
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(17) Have the authority to Enter into agreements with
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other states for the operation and promotion of a multistate
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lottery if such agreements are in the best interest of the state
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lottery. The authority conferred by this subsection is not
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effective until 1 year after the first day of lottery ticket
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sales.
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Section 3. Subsections (6) and (7) of section 24.108,
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Florida Statutes, are amended to read:
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24.108 Division of Security; duties; security report.—
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(6) The division shall monitor ticket validation and
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lottery drawings where ball machines are used to select winning
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numbers.
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(7)(a) By July 1, 2027, and once every 2 years thereafter
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After the first full year of sales of tickets to the public, or
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sooner if the secretary deems necessary, the department shall
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engage an independent firm experienced in security procedures,
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including, but not limited to, computer security and systems
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security, to conduct a comprehensive study and evaluation of all
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aspects of security in the operation of the department.
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(b) The portion of the security report containing the
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overall evaluation of the department in terms of each aspect of
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security must shall be presented to the Governor, the President
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of the Senate, and the Speaker of the House of Representatives.
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The portion of the security report containing specific
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recommendations is shall be confidential and must shall be
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presented only to the secretary, the Governor, and the Auditor
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General; however, upon certification that such information is
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necessary for the purpose of effecting legislative changes, such
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information must shall be disclosed to the President of the
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Senate and the Speaker of the House of Representatives, who may
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disclose such information to members of the Legislature and
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legislative staff as necessary to effect such purpose. However,
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any person who receives a copy of such information or other
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information which is confidential pursuant to this act or rule
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of the department shall maintain its confidentiality. The
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confidential portion of the report is exempt from the provisions
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of s. 119.07(1) and s. 24(a), Art. I of the State Constitution.
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(c) Thereafter, similar studies of security shall be
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conducted as the department deems appropriate but at least once
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every 2 years. Section 4. Subsection (2) of section 24.111, Florida
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Statutes, are amended to read:
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24.111 Vendors; disclosure and contract requirements.—
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(2) The department shall investigate the financial
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responsibility, security, and integrity of each vendor with
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which it intends to negotiate a contract for major procurement.
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Such investigation may include an investigation of the financial
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responsibility, security, and integrity of any or all persons
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whose names and addresses are required to be disclosed pursuant
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to paragraph (a). Any person who submits a bid, a proposal, or
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an offer as part of a major procurement must, at the time of
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submitting such bid, proposal, or offer, provide the following:
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(a) A disclosure of the vendor's name and address and, as
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applicable, the name and address and any additional disclosures
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necessary for an investigation of the financial responsibility,
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security, and integrity of the following:
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1. If the vendor is a corporation, the officers,
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directors, and each stockholder in such corporation; except
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that, in the case of owners of equity securities of a publicly
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traded corporation, only the names and addresses of those known
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to the corporation to own beneficially 5 percent or more of such
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securities need be disclosed.
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2. If the vendor is a trust, the trustee and all persons
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entitled to receive income or benefit from the trust.
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3. If the vendor is an association, the members, officers,
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and directors.
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4. If the vendor is a partnership or joint venture, all of
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the general partners, limited partners, or joint venturers.
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If the vendor subcontracts any substantial portion of the work
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to be performed to a subcontractor, the vendor must shall
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disclose all of the information required by this paragraph for
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the subcontractor as if the subcontractor were itself a vendor.
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(b) A disclosure of all the states and jurisdictions in
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which the vendor does business and of the nature of that
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business for each such state or jurisdiction.
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(c) A disclosure of all the states and jurisdictions in
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which the vendor has contracts to supply gaming goods or
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services, including, but not limited to, lottery goods and
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services, and of the nature of the goods or services involved
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for each such state or jurisdiction.
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(d) A disclosure of all the states and jurisdictions in
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which the vendor has applied for, has sought renewal of, has
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received, has been denied, has pending, or has had revoked a
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gaming license or contract of any kind and of the disposition of
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such in each such state or jurisdiction. If any gaming license
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or contract has been revoked or has not been renewed or any
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gaming license or contract application has been either denied or
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is pending and has remained pending for more than 6 months, all
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of the facts and circumstances underlying this failure to
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receive such a license must be disclosed.
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(e) A disclosure of the details of any conviction or
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judgment of a state or federal court of the vendor of any felony
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or any other criminal offense other than a traffic violation.
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(f) A disclosure of the details of any bankruptcy,
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insolvency, reorganization, or any pending litigation of the
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vendor.
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(g) Such additional disclosures and information as the
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department may determine to be appropriate for the procurement
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involved.
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(h) The department shall lease all vending machines that
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dispense online lottery tickets, instant lottery tickets, or
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both online and instant lottery tickets.
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(i) The department will require a performance bond for the
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duration of the contract.
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The department may shall not contract with any vendor who fails
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to make the disclosures required by this subsection, and any
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contract with a vendor who has failed to make the required
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disclosures is shall be unenforceable. Any contract with any
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vendor who does not comply with such requirements for
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periodically updating such disclosures during the tenure of such
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contract as may be specified in such contract may be terminated
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by the department. This subsection must shall be construed
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broadly and liberally to achieve the ends of full disclosure of
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all information necessary to allow for a full and complete
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evaluation by the department of the competence, integrity,
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background, and character of vendors for major procurements.
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Section 5. Subsection (9) and paragraph (a) of subsection
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(15) of section 24.112, Florida Statutes, are amended to read:
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24.112 Retailers of lottery tickets; authorization of
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vending machines to dispense lottery tickets.—
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(9)(a) The department may require every retailer to post
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an appropriate bond as determined by the department, using an
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insurance company acceptable to the department, in an amount not
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to exceed three times twice the average lottery ticket sales of
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the retailer for the period within which the retailer is
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required to remit lottery funds to the department. For the first
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90 days of sales of a new retailer, the amount of the bond may
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not exceed three times twice the average estimated lottery
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ticket sales for the period within which the retailer is
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required to remit lottery funds to the department. This
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paragraph does shall not apply to lottery tickets which are
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prepaid by the retailer.
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(b) In lieu of such bond, the department may do any of the
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following:
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1. Purchase blanket bonds covering all or selected
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retailers.
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2. or may Allow a retailer to deposit and maintain with
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the Chief Financial Officer securities that are interest bearing
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or accruing and that, with the exception of those specified in
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sub-subparagraphs a. and b. subparagraphs 1. and 2., are rated
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in one of the four highest classifications by an established
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nationally recognized investment rating service. Securities
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eligible under this subparagraph are paragraph shall be limited
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to:
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a.1. Certificates of deposit issued by solvent banks or
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savings associations organized and existing under the laws of
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this state or under the laws of the United States and having
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their principal place of business in this state.
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b.2. United States bonds, notes, and bills for which the
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full faith and credit of the government of the United States is
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pledged for the payment of principal and interest.
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c.3. General obligation bonds and notes of any political
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subdivision of the state.
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d.4. Corporate bonds of any corporation that is not an
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affiliate or subsidiary of the depositor.
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3. Allow a retailer to remit funds to the department for
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deposit in an interest-bearing bank account held by the
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department.
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Such securities must shall be held in trust and shall have at
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all times a market value at least equal to an amount required by
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the department.
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(15) A vending machine may be used to dispense online
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lottery tickets, instant lottery tickets, or both online and
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instant lottery tickets.
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(a) The vending machine must:
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1. Dispense a lottery ticket following receipt of payment
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from after a purchaser via inserts a coin, or currency, or a
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noncredit, cashless payment method authorized by the department;
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in the machine.
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2. Be capable of being electronically deactivated for a
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period of 5 minutes or more; and.
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3. Be designed to prevent its use for any purpose other
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than dispensing a lottery ticket.
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Section 6. Subsection (2) of section 24.116, Florida
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Statutes, is amended to read:
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24.116 Unlawful purchase of lottery tickets; penalty.—
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(2) An No officer or employee of the department or any
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relative living in the same household with such officer or
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employee may not purchase a lottery ticket. Sworn law
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enforcement officers employed by the Division of Security may
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purchase lottery tickets and present lottery tickets to a
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lottery retailer to claim a prize when such purchase or
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presentation of lottery tickets is necessary for the performance
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of the officers' official duties, including, but not limited to,
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compliance operations and investigations.
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Section 7. Subsection (3) of section 24.118, Florida
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Statutes, is amended, and subsections (5) and (6) are added to that section, to read:
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24.118 Other prohibited acts; penalties.—
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(3) COUNTERFEIT OR ALTERED TICKETS.—A Any person who:
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(a) Knowingly presents a counterfeit or altered state
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lottery ticket;
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(b) Knowingly transfers a counterfeit or altered state
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lottery ticket to another to present for payment; or
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(c) With intent to defraud, falsely makes, alters, forges,
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passes, or counterfeits a state lottery ticket; or
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(d) Files with the department a claim for payment based
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upon facts alleged by the claimant which facts are untrue and
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known by the claimant to be untrue when the claim is made;
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commits is guilty of a felony of the third degree, punishable as
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provided in s. 775.082, s. 775.083, or s. 775.084.
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(5) FALSE CLAIM.—A person may not, when presenting or
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causing to be presented any claim for payment or approval to an
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officer or employee of the department or to a lottery retailer,
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knowingly and willfully:
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(a) Falsify or conceal a material fact;
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(b) Make any false, fictitious, or fraudulent statement or
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representation relating to a material fact; or
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(c) Make or use any false document, knowing the document
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contains a false, fictitious, or fraudulent statement or entry
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relating to a material fact.
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A person who violates this subsection commits a felony of the
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third degree, punishable as provided in s. 775.082, s. 775.083,
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or s. 775.084.
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(6) THEFT OF LOTTERY TICKET BY RETAILER.—
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(a) A lottery retailer or an employee thereof may not use
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his or her position to knowingly facilitate, participate in, or
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otherwise assist in the theft of any lottery ticket from the
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retail establishment or from a patron or customer of the retail
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establishment.
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(b) A person who violates paragraph (a) commits a felony
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of the third degree, punishable as provided in s. 775.082, s.
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775.083, or s. 775.084.
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(c) As used in this subsection, the terms "patron" and
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"customer" include a sworn law enforcement officer of the
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Division of Security presenting a lottery ticket to a lottery
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retailer to claim a prize during the performance of the law
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enforcement officer's official duties.
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Section 8. This act shall take effect July 1, 2026.