Fla. Admin. Code Ann. R. 53ER22-44 - Retailer Accountability
(1) Lottery
Ticket Accountability. Each retailer shall be accountable for all Draw game
(also known as "online terminal games") tickets issued, all Scratch-Off game
(also known as "instant games") tickets accepted, and all funds collected by
the retailer for the sale of lottery tickets.
(a) Draw Game Lottery Ticket Accountability
for Tickets Printed on Florida Lottery Official Paper Stock. Each retailer is
liable to the Florida Lottery ("Lottery") for all lottery tickets issued by any
employee or representative of that retailer, less canceled lottery tickets and
lottery tickets returned for adjustment credit.
1. A retailer may receive a sales adjustment
credit under the following circumstances:
a.
The lottery ticket did not print and the transaction is marked with an asterisk
(*) on the Transaction History Report, provided the retailer mails the online
terminal game Transaction History Report to the Lottery within thirty (30) days
of the transaction date, or
b. The
lottery ticket misprints or is miscut and the dollar amount is visible and
provided the retailer mails the lottery ticket along with a Request for
Adjustment Form DOL-493, revised 12/20, to the Lottery within thirty (30) days
of the transaction date. Form DOL-493 is incorporated by reference and may be
obtained from the Florida Lottery's website at flalottery.com or from the
Florida Lottery's retailer website at
retailerwizard.flalottery.com.
2. A retailer may also receive adjustment
credit under the following circumstances, provided the retailer reports the
issue to the Lottery within two (2) hours of the sale, before the game closes
for the next available draw, or before the end of the gaming day, whichever
occurs first (collectively the "reporting window").
a. The lottery ticket did not print and the
transaction is not marked with an asterisk (*) on the Transaction History
Report,
b. The lottery ticket
misprints or is miscut and the dollar amount is not visible, or
c. The lottery ticket cannot be canceled by
the terminal but nothing appears to be wrong with the ticket and the ticket
barcode will not scan.
For the circumstances set forth in sub-subparagraphs (1)(a)2.b. and c., above, the retailer must mail the lottery ticket to the Lottery within thirty (30) days of the transaction date.
(b) Draw Game Lottery Accountability for
QuickTicketsTM. Retailers selling QuickTickets are
liable to the Florida Lottery for all QuickTickets accepted by any employee or
representative of that retailer, less transaction processing attempt failures
that do not produce an activation receipt when scanned at the retailer's point
of sale terminal (sales register).
1. The
issuance of a receipt assures that a QuickTicket has been activated. Retailers
shall ensure that a receipt issues/prints for a QuickTicket sale. The
issued/printed receipt shall then be provided to the player. If a QuickTicket
receipt does not print, the retailer will return any collected payment to the
player and will obtain the QuickTicket from the player, if the player is in
possession of the ticket. A retailer will not place for resale a QuickTicket
for which a receipt was not issued and will return it to the Lottery or its
designated representative.
2. A
retailer may receive an adjustment credit if the transaction is placed on
"hold" in the system and the retailer mails the online terminal game
Transaction History Report to the Lottery within thirty (30) days of the
transaction date, provided the retailer mails the QuickTicket along with a
Request for Adjustment Form DOL 493, revised 12/20, to the Lottery within
thirty (30) days of the transaction date,
3. QuickTicket Theft, Damage, or Loss. A
retailer shall promptly report to the Lottery any theft, damage, or loss of
QuickTickets and shall provide all known circumstances regarding the theft,
damage, or loss. If practicable, damaged tickets shall be returned to the
Lottery or its designated representative.
4. QuickTicket Inventory. A retailer shall
permit an inventory check by the Lottery or its authorized representative at
periodic intervals.
5. Retailers
shall not use QuickTickets to award free Quick Pick ticket
prizes.
(c) General
Provisions for Draw Game Tickets - Adjustment Credits.
1. Tickets submitted to the Florida Lottery
for adjustment credit shall become the property of the Florida Lottery and will
not be returned to the retailer.
2.
The Lottery will approve adjustment credit requests submitted outside the
reporting window for online terminal game lottery ticket transactions that
occur during a documented system failure that impacts network communications
and that is outside the retailer's control.
3. The mailing address for submission of
sales adjustment documentation is: Florida Lottery, Games Administration, 250
Marriott Drive, Tallahassee 32399-9939.
(d) Scratch-Off Game Lottery Ticket
Accountability. Retailers shall accept books of Scratch-Off game lottery
tickets for sale on a consignment basis in accordance with the Lottery's
inventory management system.
1. A retailer may
receive a sales adjustment credit under the following circumstances:
a. A ticket is miscut while dispensing from a
vending machine and the ticket is not saleable. The play area on the front of
the ticket must not be scratched off for credit to be considered. The retailer
submitting the ticket for adjustment must be the owner of the book.
b. A ticket has a quality control issue such
as non-scratchable latex.
2. Scratch-Off game lottery tickets submitted
to the Florida Lottery for adjustment credit shall become the property of the
Florida Lottery and shall not be returned to the retailer.
3. Books of Scratch-Off game lottery tickets
accepted by a retailer shall be settled for payment by one of the following
three methods:
a. Settlement by the retailer,
b. Automatic settlement to occur
as established by the Lottery within a maximum of ninety (90) days after a book
has been activated for sale or after ninety percent (90%) of low-tier prizes
have been redeemed, whichever occurs first, except as set forth in subparagraph
(2)(g)3., below, or
c. Settlement
of books by a Lottery representative during inventory management because books
are no longer in the retailer's onsite inventory.
4. A complete inspection of all Scratch-Off
game lottery ticket inventory will be conducted by a Lottery representative at
least once per quarter. During such inventory, books in a "received" status on
the inventory management system that are not physically present at the retail
location will be reported as missing and the retailer will be charged fifty
percent (50%) of the sales value of the book, less sales commission. Books in
an "active" status on the inventory management system that are not physically
present at the location will be settled.
(2) Financial Accountability.
(a) Each retailer shall maintain an open
commercial bank account for all amounts collected from ticket sales until such
amounts have been collected by the Lottery. All amounts received by each
retailer from the operation of the Lottery, less the amount retained as
compensation for the sale and cashing of tickets and the amount paid out as
prizes, shall be held in a bank account prior to collection by the Lottery on
the designated day of collection.
(b) The amount owed by a retailer to the
Lottery will be electronically transferred from the retailer's bank account to
the Lottery on a designated day each week. If the transfer is unsuccessful due
to insufficient funds, a second attempt will automatically be made.
(c) A retailer is authorized to use its
commercial bank account or a separate commercial bank account for Lottery
purposes.
(d) A retailer shall
notify the Lottery of a change in its bank account at least six (6) days in
advance of such change becoming effective.
(e) A retailer shall maintain its bank
account for a minimum of thirty (30) days after the termination date of its
retailer contract.
(f) Each
retailer shall complete form DOL-103, Electronic Fund Transfer Authorization
Form, revised 07/13 and return the form to the Lottery at the time of
application or in advance of a bank account change. Form DOL-103 is
incorporated herein by reference and may be obtained from the Florida Lottery's
website at flalottery.com or the Florida Lottery's retailer website at
retailerwizard.flalottery.com. The form authorizes the Lottery to debit or
credit the retailer's bank account through electronic funds
transfers.
(g) The following
procedures apply to Electronic Funds Transfer (EFT) delinquencies:
1. For purposes of this rule, an Electronic
Funds Transfer delinquency is defined as an unsuccessful attempt to
electronically transfer funds from a retailer's bank account to the Lottery in
payment of the retailer's weekly settlement activity. If both the first and
second weekly attempts to transfer funds fail, the failures together shall
count as only one delinquency.
2.
For all delinquencies, the retailer's ability to sell online terminal game
lottery tickets and order Scratch-Off game lottery tickets shall be
suspended.
3. For a first or second
delinquency in a twelve-month period, the retailer shall be required to pay the
delinquency in full plus applicable service charges prior to reactivation of
its ability to sell online terminal game lottery tickets and order Scratch-Off
game lottery tickets. Upon the occurrence of a second delinquency, the
automatic book settlement period established in sub-subparagraph (1)(d)3.b.,
above, will be shortened to a timeframe established by the Lottery for a
minimum of six (6) months. The retailer's collection activity will be reviewed
during the first January or July occurring after the expiration of six (6)
months from the date of delinquency. If the retailer has incurred no additional
delinquencies during that time, the automatic book settlement period will
revert to the established pre-delinquency automatic book settlement period. If
the retailer incurs additional delinquencies while in the shortened book
settlement period and the retailer's contract is not terminated, the shortened
book settlement period will remain in effect, and the retailer's account will
be reviewed at the next scheduled review period.
4. For a third delinquency in a twelve-month
period, the retailer shall be required to pay the delinquency in full plus
applicable service charges and post a certificate of deposit or performance
bond with the Florida Lottery prior to reactivation of its ability to sell
online terminal game lottery tickets and order Scratch-Off game lottery
tickets. The amount of the security shall not exceed twice the retailer's
average weekly ticket sales as determined by the Lottery.
5. For a fourth delinquency in a twelve-month
period, a review of the retailer account will be performed by the Lottery to
determine if the retailer's contract will be terminated. In making its
determination, the Lottery will review factors such as the retailer's Lottery
accounts receivable transactions and Lottery sales history. If the retailer
contract is not terminated and the amount of the retailer's posted security is
less than the statutorily authorized maximum of twice the retailer's average
weekly ticket sales, the Lottery will increase the amount of the required
security to the maximum amount.
6.
The Lottery is authorized to terminate a retailer's contract prior to a fourth
delinquency in a twelve-month period if the Lottery determines that such action
is necessary in order to protect the state's financial interests.
7. For purposes of calculating the number of
delinquencies occurring in a twelve-month period, an unsuccessful transfer on
the first weekly attempt will not be counted as a separate delinquency if the
transfer on the second weekly attempt is successful.
8. For each delinquency, the retailer shall
be assessed a non-refundable service charge of fifteen dollars per incident or
five percent of the amount due per incident, whichever is greater, up to a
maximum of one hundred-fifty dollars. The Lottery will assess only one service
fee to retailer chain accounts that use the same bank account for all stores.
The assessed fee shall be five percent of the total amount due for all
locations up to a maximum of one hundred-fifty dollars. Payment of the
delinquent settlement amount and any applicable service charges is due
immediately from the retailer and prior to online terminal game sales and the
ability to order Scratch-Off game lottery tickets being reinstated.
9. An unsuccessful transfer on the first
weekly attempt will not result in assessment of a service charge if the second
weekly attempt is successful. Only one service charge will be assessed if both
the first and second attempts are unsuccessful.
10. If the Lottery determines that it is in
its best financial interest, taking into consideration factors such as the
amount of the delinquency and the length of time the delinquency and/or service
charges are outstanding, the Lottery district office will be instructed to
settle the sold Scratch-Off tickets and pick up any remaining Scratch-Off
ticket inventory. A retailer's access to computerized Lottery transactions will
be limited to redeeming winning tickets and printing reports until Lottery
Headquarters has received notification of payment in full.
11. To satisfy an EFT delinquency, the
retailer may:
a. Deposit a Cashier's check or
money order made payable to the Florida Lottery into a specified Lottery bank
account,
b. Wire transfer the funds
into a specified Lottery bank account, or
c. Deliver a Cashier's check or money order
to a Lottery office.
12.
The Lottery will accept a prepayment for the settlement amount if the
prepayment is received by the Lottery prior to 5:00 p.m. (Eastern Time) on the
day before the EFT would normally occur. A service charge will not be applied
to the first three (3) prepayments made by a retailer in a twelve-month period,
nor will the first three (3) prepayments be counted as a delinquency against
the retailer; however, retailers who make more than three (3) prepayments in a
twelve-month period will be assessed a service charge as described in
subparagraph (2)(g)8., above, for each additional prepayment. The Lottery will
waive the service charge upon a showing of good cause by a retailer, e.g., the
circumstances necessitating prepayment are attributable to the retailer's bank
or to the Lottery. Failure by the Lottery to impose a service charge does not
constitute a waiver of its right to impose a service charge for any subsequent
prepayment.
13. The Lottery will
actively pursue collection of all delinquencies that are not paid through the
process described above.
(3) The effective date of this emergency rule
is August 1, 2022.
(4) This
emergency rule replaces Emergency Rule 53ER21-2, F.A.C.
Notes
Rulemaking Authority 24.109(1), 24.112(1) FS. Law Implemented 24.112(1), (11), 24.114 FS.
New 8-1-2022, Replaces 53ER21-2.
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
(1) Lottery Ticket Accountability. Each retailer shall be accountable for all Draw game (also known as "online terminal games") tickets issued, all Scratch-Off game (also known as "instant games") tickets accepted, and all funds collected by the retailer for the sale of lottery tickets.
(a) Draw Game Lottery Ticket Accountability for Tickets Printed on Florida Lottery Official Paper Stock. Each retailer is liable to the Florida Lottery ("Lottery") for all lottery tickets issued by any employee or representative of that retailer, less canceled lottery tickets and lottery tickets returned for adjustment credit.
1. A retailer may receive a sales adjustment credit under the following circumstances:
a. The lottery ticket did not print and the transaction is marked with an asterisk (*) on the Transaction History Report, provided the retailer mails the online terminal game Transaction History Report to the Lottery within thirty (30) days of the transaction date, or
b. The lottery ticket misprints or is miscut and the dollar amount is visible and provided the retailer mails the lottery ticket along with a Request for Adjustment Form DOL-493, revised 12/20, to the Lottery within thirty (30) days of the transaction date. Form DOL-493 is incorporated by reference and may be obtained from the Florida Lottery's website at flalottery.com or from the Florida Lottery's retailer website at retailerwizard.flalottery.com.
2. A retailer may also receive adjustment credit under the following circumstances, provided the retailer reports the issue to the Lottery within two (2) hours of the sale, before the game closes for the next available draw, or before the end of the gaming day, whichever occurs first (collectively the "reporting window").
a. The lottery ticket did not print and the transaction is not marked with an asterisk (*) on the Transaction History Report,
b. The lottery ticket misprints or is miscut and the dollar amount is not visible, or
c. The lottery ticket cannot be canceled by the terminal but nothing appears to be wrong with the ticket and the ticket barcode will not scan.
For the circumstances set forth in sub-subparagraphs (1)(a)2.b. and c., above, the retailer must mail the lottery ticket to the Lottery within thirty (30) days of the transaction date.
(b) Draw Game Lottery Accountability for QuickTicketsTM. Retailers selling QuickTickets are liable to the Florida Lottery for all QuickTickets accepted by any employee or representative of that retailer, less transaction processing attempt failures that do not produce an activation receipt when scanned at the retailer's point of sale terminal (sales register).
1. The issuance of a receipt assures that a QuickTicket has been activated. Retailers shall ensure that a receipt issues/prints for a QuickTicket sale. The issued/printed receipt shall then be provided to the player. If a QuickTicket receipt does not print, the retailer will return any collected payment to the player and will obtain the QuickTicket from the player, if the player is in possession of the ticket. A retailer will not place for resale a QuickTicket for which a receipt was not issued and will return it to the Lottery or its designated representative.
2. A retailer may receive an adjustment credit if the transaction is placed on "hold" in the system and the retailer mails the online terminal game Transaction History Report to the Lottery within thirty (30) days of the transaction date, provided the retailer mails the QuickTicket along with a Request for Adjustment Form DOL 493, revised 12/20, to the Lottery within thirty (30) days of the transaction date,
3. QuickTicket Theft, Damage, or Loss. A retailer shall promptly report to the Lottery any theft, damage, or loss of QuickTickets and shall provide all known circumstances regarding the theft, damage, or loss. If practicable, damaged tickets shall be returned to the Lottery or its designated representative.
4. QuickTicket Inventory. A retailer shall permit an inventory check by the Lottery or its authorized representative at periodic intervals.
5. Retailers shall not use QuickTickets to award free Quick Pick ticket prizes.
(c) General Provisions for Draw Game Tickets - Adjustment Credits.
1. Tickets submitted to the Florida Lottery for adjustment credit shall become the property of the Florida Lottery and will not be returned to the retailer.
2. The Lottery will approve adjustment credit requests submitted outside the reporting window for online terminal game lottery ticket transactions that occur during a documented system failure that impacts network communications and that is outside the retailer's control.
3. The mailing address for submission of sales adjustment documentation is: Florida Lottery, Games Administration, 250 Marriott Drive, Tallahassee 32399-9939.
(d) Scratch-Off Game Lottery Ticket Accountability. Retailers shall accept books of Scratch-Off game lottery tickets for sale on a consignment basis in accordance with the Lottery's inventory management system.
1. A retailer may receive a sales adjustment credit under the following circumstances:
a. A ticket is miscut while dispensing from a vending machine and the ticket is not saleable. The play area on the front of the ticket must not be scratched off for credit to be considered. The retailer submitting the ticket for adjustment must be the owner of the book.
b. A ticket has a quality control issue such as non-scratchable latex.
2. Scratch-Off game lottery tickets submitted to the Florida Lottery for adjustment credit shall become the property of the Florida Lottery and shall not be returned to the retailer.
3. Books of Scratch-Off game lottery tickets accepted by a retailer shall be settled for payment by one of the following three methods:
a. Settlement by the retailer,
b. Automatic settlement to occur as established by the Lottery within a maximum of ninety (90) days after a book has been activated for sale or after ninety percent (90%) of low-tier prizes have been redeemed, whichever occurs first, except as set forth in subparagraph (2)(g)3., below, or
c. Settlement of books by a Lottery representative during inventory management because books are no longer in the retailer's onsite inventory.
4. A complete inspection of all Scratch-Off game lottery ticket inventory will be conducted by a Lottery representative at least once per quarter. During such inventory, books in a "received" status on the inventory management system that are not physically present at the retail location will be reported as missing and the retailer will be charged fifty percent (50%) of the sales value of the book, less sales commission. Books in an "active" status on the inventory management system that are not physically present at the location will be settled.
(2) Financial Accountability.
(a) Each retailer shall maintain an open commercial bank account for all amounts collected from ticket sales until such amounts have been collected by the Lottery. All amounts received by each retailer from the operation of the Lottery, less the amount retained as compensation for the sale and cashing of tickets and the amount paid out as prizes, shall be held in a bank account prior to collection by the Lottery on the designated day of collection.
(b) The amount owed by a retailer to the Lottery will be electronically transferred from the retailer's bank account to the Lottery on a designated day each week. If the transfer is unsuccessful due to insufficient funds, a second attempt will automatically be made.
(c) A retailer is authorized to use its commercial bank account or a separate commercial bank account for Lottery purposes.
(d) A retailer shall notify the Lottery of a change in its bank account at least six (6) days in advance of such change becoming effective.
(e) A retailer shall maintain its bank account for a minimum of thirty (30) days after the termination date of its retailer contract.
(f) Each retailer shall complete form DOL-103, Electronic Fund Transfer Authorization Form, revised 07/13 and return the form to the Lottery at the time of application or in advance of a bank account change. Form DOL-103 is incorporated herein by reference and may be obtained from the Florida Lottery's website at flalottery.com or the Florida Lottery's retailer website at retailerwizard.flalottery.com. The form authorizes the Lottery to debit or credit the retailer's bank account through electronic funds transfers.
(g) The following procedures apply to Electronic Funds Transfer (EFT) delinquencies:
1. For purposes of this rule, an Electronic Funds Transfer delinquency is defined as an unsuccessful attempt to electronically transfer funds from a retailer's bank account to the Lottery in payment of the retailer's weekly settlement activity. If both the first and second weekly attempts to transfer funds fail, the failures together shall count as only one delinquency.
2. For all delinquencies, the retailer's ability to sell online terminal game lottery tickets and order Scratch-Off game lottery tickets shall be suspended.
3. For a first or second delinquency in a twelve-month period, the retailer shall be required to pay the delinquency in full plus applicable service charges prior to reactivation of its ability to sell online terminal game lottery tickets and order Scratch-Off game lottery tickets. Upon the occurrence of a second delinquency, the automatic book settlement period established in sub-subparagraph (1)(d)3.b., above, will be shortened to a timeframe established by the Lottery for a minimum of six (6) months. The retailer's collection activity will be reviewed during the first January or July occurring after the expiration of six (6) months from the date of delinquency. If the retailer has incurred no additional delinquencies during that time, the automatic book settlement period will revert to the established pre-delinquency automatic book settlement period. If the retailer incurs additional delinquencies while in the shortened book settlement period and the retailer's contract is not terminated, the shortened book settlement period will remain in effect, and the retailer's account will be reviewed at the next scheduled review period.
4. For a third delinquency in a twelve-month period, the retailer shall be required to pay the delinquency in full plus applicable service charges and post a certificate of deposit or performance bond with the Florida Lottery prior to reactivation of its ability to sell online terminal game lottery tickets and order Scratch-Off game lottery tickets. The amount of the security shall not exceed twice the retailer's average weekly ticket sales as determined by the Lottery.
5. For a fourth delinquency in a twelve-month period, a review of the retailer account will be performed by the Lottery to determine if the retailer's contract will be terminated. In making its determination, the Lottery will review factors such as the retailer's Lottery accounts receivable transactions and Lottery sales history. If the retailer contract is not terminated and the amount of the retailer's posted security is less than the statutorily authorized maximum of twice the retailer's average weekly ticket sales, the Lottery will increase the amount of the required security to the maximum amount.
6. The Lottery is authorized to terminate a retailer's contract prior to a fourth delinquency in a twelve-month period if the Lottery determines that such action is necessary in order to protect the state's financial interests.
7. For purposes of calculating the number of delinquencies occurring in a twelve-month period, an unsuccessful transfer on the first weekly attempt will not be counted as a separate delinquency if the transfer on the second weekly attempt is successful.
8. For each delinquency, the retailer shall be assessed a non-refundable service charge of fifteen dollars per incident or five percent of the amount due per incident, whichever is greater, up to a maximum of one hundred-fifty dollars. The Lottery will assess only one service fee to retailer chain accounts that use the same bank account for all stores. The assessed fee shall be five percent of the total amount due for all locations up to a maximum of one hundred-fifty dollars. Payment of the delinquent settlement amount and any applicable service charges is due immediately from the retailer and prior to online terminal game sales and the ability to order Scratch-Off game lottery tickets being reinstated.
9. An unsuccessful transfer on the first weekly attempt will not result in assessment of a service charge if the second weekly attempt is successful. Only one service charge will be assessed if both the first and second attempts are unsuccessful.
10. If the Lottery determines that it is in its best financial interest, taking into consideration factors such as the amount of the delinquency and the length of time the delinquency and/or service charges are outstanding, the Lottery district office will be instructed to settle the sold Scratch-Off tickets and pick up any remaining Scratch-Off ticket inventory. A retailer's access to computerized Lottery transactions will be limited to redeeming winning tickets and printing reports until Lottery Headquarters has received notification of payment in full.
11. To satisfy an EFT delinquency, the retailer may:
a. Deposit a Cashier's check or money order made payable to the Florida Lottery into a specified Lottery bank account,
b. Wire transfer the funds into a specified Lottery bank account, or
c. Deliver a Cashier's check or money order to a Lottery office.
12. The Lottery will accept a prepayment for the settlement amount if the prepayment is received by the Lottery prior to 5:00 p.m. (Eastern Time) on the day before the EFT would normally occur. A service charge will not be applied to the first three (3) prepayments made by a retailer in a twelve-month period, nor will the first three (3) prepayments be counted as a delinquency against the retailer; however, retailers who make more than three (3) prepayments in a twelve-month period will be assessed a service charge as described in subparagraph (2)(g)8., above, for each additional prepayment. The Lottery will waive the service charge upon a showing of good cause by a retailer, e.g., the circumstances necessitating prepayment are attributable to the retailer's bank or to the Lottery. Failure by the Lottery to impose a service charge does not constitute a waiver of its right to impose a service charge for any subsequent prepayment.
13. The Lottery will actively pursue collection of all delinquencies that are not paid through the process described above.
(3) The effective date of this emergency rule is August 1, 2022.
(4) This emergency rule replaces Emergency Rule 53ER21-2, F.A.C.
Notes
Rulemaking Authority 24.109(1), 24.112(1) FS. Law Implemented 24.112(1), (11), 24.114 FS.
New 8-1-2022, Replaces 53ER21-2.