H 1401

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    HB 1401  2026
1A bill to be entitled
2An act relating to state lotteries; amending s.
324.103, F.S.; defining the term "ball machine";
4revising the definitions of the terms "major
5procurement" and "retailer"; amending s. 24.105, F.S.;
6revising the powers and duties of the Department of
7the Lottery; amending s. 24.108, F.S.; revising the
8schedule for the department to have a certain report
9produced and submitted to the Governor and the
10Legislature; amending s. 24.111, F.S.; revising the
11information required to be provided to the department
12by persons who submit a bid, a proposal, or an offer
13to negotiate a contract for major procurement;
14amending s. 24.112, F.S.; revising the bond amount a
15retailer may be required to post for the period within
16which the retailer is required to remit lottery funds
17to the department; revising certain requirements
18relating to lottery vending machines; amending s.
1924.116, F.S.; authorizing the division's sworn law
20enforcement officers to purchase and present lottery
21tickets to a lottery retailer to claim a prize under
22certain circumstances; amending s. 24.118, F.S.;
23revising certain prohibitions and penalties relating
24to presenting a counterfeit or altered state lottery
25ticket; prohibiting certain false claims relating to
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26state lottery tickets; prohibiting a lottery retailer
27or an employee thereof from using such position to
28knowingly facilitate, participate in, or otherwise
29assist in the theft of a lottery ticket from a retail
30establishment, patron, or customer; providing criminal
31penalties; defining the terms "patron" and "customer";
32providing an effective date.
33
34    Be It Enacted by the Legislature of the State of Florida:
35
36Section 1.       Present subsections (1) through (6) of section
37    24.103, Florida Statutes, are redesignated as subsections (2)
38    through (7), respectively, a new subsection (1) is added to that
39    section, and present subsections (2) and (4) of that section are
40    amended, to read:
4124.103      Definitions.—As used in this act:
42(1)     "Ball machine" means a device that mechanically mixes
43    a set of numbered balls and then randomly draws from that mix to
44    determine the winning numbers for a specific game.
45(3)(2)      "Major procurement" means a procurement for a
46    contract for the printing of tickets for use in any lottery
47    game, consultation services for the startup of the lottery, any
48    goods or services involving the official recording for lottery
49    game play purposes of a player's selections in any lottery game
50    involving player selections, any goods or services involving the
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51    receiving of a player's selection directly from a player in any
52    lottery game involving player selections, any goods or services
53    involving the drawing, determination, or generation of winners
54    in any lottery game, the security report services provided for
55    in this act, or any goods and services relating to marketing and
56    promotion which exceed a value of $25,000.
57(5)(4)      "Retailer" means the department or a person who
58    sells lottery tickets on behalf of the department pursuant to a
59    contract.
60Section 2.       Present paragraphs (i) and (j) of subsection
61    (9) of section 24.105, Florida Statutes, are redesignated as
62    paragraphs (j) and (k), respectively, a new paragraph (i) is
63    added to that subsection, and paragraphs (a) and (d) of
64    subsection (9) and subsection (17) of that section are amended,
65    to read:
6624.105      Powers and duties of department.—The department
67    shall:
68(9)     Adopt rules governing the establishment and operation
69    of the state lottery, including:
70(a)     The type of lottery games to be conducted, except
71    that:
721.      The No name of an elected official may not shall appear
73    on the ticket or play slip of any lottery game or on any prize
74    or on any instrument used for the payment of prizes, unless such
75    prize is in the form of a state warrant.
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762.      No Coins or currency may not shall be dispensed from
77     any electronic computer terminal or device used in any lottery
78     game.
793.      Other than as specifically provided in s. 24.112, a no
80     terminal or device may not be used for any lottery game which
81     may be operated solely by the player without the assistance of
82     the retailer.
83(d)     The method of selecting winning tickets. However, if a
84     lottery game involves the use of a ball machine to conduct a
85     drawing, the drawing must shall be public and witnessed by an
86     accountant employed by an independent certified public
87     accounting firm. The department shall inspect the equipment used
88     in the drawing shall be inspected before and after the drawing.
89(i)     The acceptable forms of payment for ticket purchases.
90(17)        Have the authority to Enter into agreements with
91     other states for the operation and promotion of a multistate
92     lottery if such agreements are in the best interest of the state
93     lottery. The authority conferred by this subsection is not
94     effective until 1 year after the first day of lottery ticket
95     sales.
96Section 3.        Subsections (6) and (7) of section 24.108,
97     Florida Statutes, are amended to read:
9824.108       Division of Security; duties; security report.—
99(6)     The division shall monitor ticket validation and
100    lottery drawings where ball machines are used to select winning
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101    numbers.
102(7)(a)      By July 1, 2027, and once every 2 years thereafter
103    After the first full year of sales of tickets to the public, or
104    sooner if the secretary deems necessary, the department shall
105    engage an independent firm experienced in security procedures,
106    including, but not limited to, computer security and systems
107    security, to conduct a comprehensive study and evaluation of all
108    aspects of security in the operation of the department.
109(b)     The portion of the security report containing the
110    overall evaluation of the department in terms of each aspect of
111    security must shall be presented to the Governor, the President
112    of the Senate, and the Speaker of the House of Representatives.
113    The portion of the security report containing specific
114    recommendations is shall be confidential and must shall be
115    presented only to the secretary, the Governor, and the Auditor
116    General; however, upon certification that such information is
117    necessary for the purpose of effecting legislative changes, such
118    information must shall be disclosed to the President of the
119    Senate and the Speaker of the House of Representatives, who may
120    disclose such information to members of the Legislature and
121    legislative staff as necessary to effect such purpose. However,
122    any person who receives a copy of such information or other
123    information which is confidential pursuant to this act or rule
124    of the department shall maintain its confidentiality. The
125    confidential portion of the report is exempt from the provisions
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126    of s. 119.07(1) and s. 24(a), Art. I of the State Constitution.
127(c)      Thereafter, similar studies of security shall be
128    conducted as the department deems appropriate but at least once
129    every 2 years.
130Section 4.       Subsection (2) of section 24.111, Florida
131    Statutes, are amended to read:
13224.111      Vendors; disclosure and contract requirements.—
133(2)      The department shall investigate the financial
134    responsibility, security, and integrity of each vendor with
135    which it intends to negotiate a contract for major procurement.
136    Such investigation may include an investigation of the financial
137    responsibility, security, and integrity of any or all persons
138    whose names and addresses are required to be disclosed pursuant
139    to paragraph (a). Any person who submits a bid, a proposal, or
140    an offer as part of a major procurement must, at the time of
141    submitting such bid, proposal, or offer, provide the following:
142(a)      A disclosure of the vendor's name and address and, as
143    applicable, the name and address and any additional disclosures
144    necessary for an investigation of the financial responsibility,
145    security, and integrity of the following:
1461.      If the vendor is a corporation, the officers,
147    directors, and each stockholder in such corporation; except
148    that, in the case of owners of equity securities of a publicly
149    traded corporation, only the names and addresses of those known
150    to the corporation to own beneficially 5 percent or more of such
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151    securities need be disclosed.
1522.      If the vendor is a trust, the trustee and all persons
153    entitled to receive income or benefit from the trust.
1543.      If the vendor is an association, the members, officers,
155    and directors.
1564.      If the vendor is a partnership or joint venture, all of
157    the general partners, limited partners, or joint venturers.
158
159    If the vendor subcontracts any substantial portion of the work
160    to be performed to a subcontractor, the vendor must shall
161    disclose all of the information required by this paragraph for
162    the subcontractor as if the subcontractor were itself a vendor.
163(b)      A disclosure of all the states and jurisdictions in
164    which the vendor does business and of the nature of that
165    business for each such state or jurisdiction.
166(c)      A disclosure of all the states and jurisdictions in
167    which the vendor has contracts to supply gaming goods or
168    services, including, but not limited to, lottery goods and
169    services, and of the nature of the goods or services involved
170    for each such state or jurisdiction.
171(d)      A disclosure of all the states and jurisdictions in
172    which the vendor has applied for, has sought renewal of, has
173    received, has been denied, has pending, or has had revoked a
174    gaming license or contract of any kind and of the disposition of
175    such in each such state or jurisdiction. If any gaming license
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176    or contract has been revoked or has not been renewed or any
177    gaming license or contract application has been either denied or
178    is pending and has remained pending for more than 6 months, all
179    of the facts and circumstances underlying this failure to
180    receive such a license must be disclosed.
181(e)     A disclosure of the details of any conviction or
182    judgment of a state or federal court of the vendor of any felony
183    or any other criminal offense other than a traffic violation.
184(f)     A disclosure of the details of any bankruptcy,
185    insolvency, reorganization, or any pending litigation of the
186    vendor.
187(g)     Such additional disclosures and information as the
188    department may determine to be appropriate for the procurement
189    involved.
190(h)     The department shall lease all vending machines that
191    dispense online lottery tickets, instant lottery tickets, or
192    both online and instant lottery tickets.
193(i)     The department will require a performance bond for the
194    duration of the contract.
195
196    The department may shall not contract with any vendor who fails
197    to make the disclosures required by this subsection, and any
198    contract with a vendor who has failed to make the required
199    disclosures is shall be unenforceable. Any contract with any
200    vendor who does not comply with such requirements for
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201    periodically updating such disclosures during the tenure of such
202    contract as may be specified in such contract may be terminated
203    by the department. This subsection must shall be construed
204    broadly and liberally to achieve the ends of full disclosure of
205    all information necessary to allow for a full and complete
206    evaluation by the department of the competence, integrity,
207    background, and character of vendors for major procurements.
208Section 5.       Subsection (9) and paragraph (a) of subsection
209    (15) of section 24.112, Florida Statutes, are amended to read:
21024.112      Retailers of lottery tickets; authorization of
211    vending machines to dispense lottery tickets.—
212(9)(a)      The department may require every retailer to post
213    an appropriate bond as determined by the department, using an
214    insurance company acceptable to the department, in an amount not
215    to exceed three times twice the average lottery ticket sales of
216    the retailer for the period within which the retailer is
217    required to remit lottery funds to the department. For the first
218    90 days of sales of a new retailer, the amount of the bond may
219    not exceed three times twice the average estimated lottery
220    ticket sales for the period within which the retailer is
221    required to remit lottery funds to the department. This
222    paragraph does shall not apply to lottery tickets which are
223    prepaid by the retailer.
224(b)     In lieu of such bond, the department may do any of the
225    following:
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2261.      Purchase blanket bonds covering all or selected
227    retailers.
2282.      or may Allow a retailer to deposit and maintain with
229    the Chief Financial Officer securities that are interest bearing
230    or accruing and that, with the exception of those specified in
231    sub-subparagraphs a. and b. subparagraphs 1. and 2., are rated
232    in one of the four highest classifications by an established
233    nationally recognized investment rating service. Securities
234    eligible under this subparagraph are paragraph shall be limited
235    to:
236a.1.        Certificates of deposit issued by solvent banks or
237    savings associations organized and existing under the laws of
238    this state or under the laws of the United States and having
239    their principal place of business in this state.
240b.2.        United States bonds, notes, and bills for which the
241    full faith and credit of the government of the United States is
242    pledged for the payment of principal and interest.
243c.3.        General obligation bonds and notes of any political
244    subdivision of the state.
245d.4.        Corporate bonds of any corporation that is not an
246    affiliate or subsidiary of the depositor.
2473.      Allow a retailer to remit funds to the department for
248    deposit in an interest-bearing bank account held by the
249    department.
250
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251    Such securities must shall be held in trust and shall have at
252    all times a market value at least equal to an amount required by
253    the department.
254(15)        A vending machine may be used to dispense online
255    lottery tickets, instant lottery tickets, or both online and
256    instant lottery tickets.
257(a)      The vending machine must:
2581.      Dispense a lottery ticket following receipt of payment
259    from after a purchaser via inserts a coin, or currency, or a
260    noncredit, cashless payment method authorized by the department;
261    in the machine.
2622.      Be capable of being electronically deactivated for a
263    period of 5 minutes or more; and.
2643.      Be designed to prevent its use for any purpose other
265    than dispensing a lottery ticket.
266Section 6.        Subsection (2) of section 24.116, Florida
267    Statutes, is amended to read:
26824.116       Unlawful purchase of lottery tickets; penalty.—
269(2)     An No officer or employee of the department or any
270    relative living in the same household with such officer or
271    employee may not purchase a lottery ticket. Sworn law
272    enforcement officers employed by the Division of Security may
273    purchase lottery tickets and present lottery tickets to a
274    lottery retailer to claim a prize when such purchase or
275    presentation of lottery tickets is necessary for the performance
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276    of the officers' official duties, including, but not limited to,
277    compliance operations and investigations.
278Section 7.       Subsection (3) of section 24.118, Florida
279    Statutes, is amended, and subsections (5) and (6) are added to
280    that section, to read:
28124.118      Other prohibited acts; penalties.—
282(3)     COUNTERFEIT OR ALTERED TICKETS.—A Any person who:
283(a)     Knowingly presents a counterfeit or altered state
284    lottery ticket;
285(b)     Knowingly transfers a counterfeit or altered state
286    lottery ticket to another to present for payment; or
287(c)     With intent to defraud, falsely makes, alters, forges,
288    passes, or counterfeits a state lottery ticket; or
289(d)     Files with the department a claim for payment based
290    upon facts alleged by the claimant which facts are untrue and
291    known by the claimant to be untrue when the claim is made;
292
293    commits is guilty of a felony of the third degree, punishable as
294    provided in s. 775.082, s. 775.083, or s. 775.084.
295(5)     FALSE CLAIM.—A person may not, when presenting or
296    causing to be presented any claim for payment or approval to an
297    officer or employee of the department or to a lottery retailer,
298    knowingly and willfully:
299(a)     Falsify or conceal a material fact;
300(b)     Make any false, fictitious, or fraudulent statement or
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301    representation relating to a material fact; or
302(c)     Make or use any false document, knowing the document
303    contains a false, fictitious, or fraudulent statement or entry
304    relating to a material fact.
305
306    A person who violates this subsection commits a felony of the
307    third degree, punishable as provided in s. 775.082, s. 775.083,
308    or s. 775.084.
309(6)     THEFT OF LOTTERY TICKET BY RETAILER.—
310(a)     A lottery retailer or an employee thereof may not use
311    his or her position to knowingly facilitate, participate in, or
312    otherwise assist in the theft of any lottery ticket from the
313    retail establishment or from a patron or customer of the retail
314    establishment.
315(b)     A person who violates paragraph (a) commits a felony
316    of the third degree, punishable as provided in s. 775.082, s.
317    775.083, or s. 775.084.
318(c)     As used in this subsection, the terms "patron" and
319    "customer" include a sworn law enforcement officer of the
320    Division of Security presenting a lottery ticket to a lottery
321    retailer to claim a prize during the performance of the law
322    enforcement officer's official duties.
323Section 8.       This act shall take effect July 1, 2026.
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