Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. CS for SB 2434
Barcode 601394
CHAMBER ACTION
Senate House
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04/19/2007 06:17 PM .
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11 The Committee on Finance and Tax (Geller) recommended the
12 following amendment:
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14 Senate Amendment (with title amendment)
15 On page 12, lines 1-25, delete those lines
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17 and insert: agreement governing the payment of purses on live
18 thoroughbred races conducted at the retailer's pari-mutuel
19 facility between the retailer and the association representing
20 a majority of the thoroughbred racehorse owners and trainers
21 at that location. In addition, a video lottery retailer may
22 not conduct video lottery games unless it has on file with the
23 department a binding written agreement between it and the
24 Florida Thoroughbred Breeders' Association, Inc., governing
25 the payment of breeders', stallion, and special racing awards
26 on live thoroughbred races conducted at the retailer's
27 pari-mutuel facility.
28 (a) The agreement governing purses and the agreement
29 governing awards may direct the payment of such purses and
30 awards from revenues generated by any wagering or gaming that
31 the applicant is authorized to conduct.
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. CS for SB 2434
Barcode 601394
1 (b) All purses and awards are subject to chapter 550.
2 All sums for breeders', stallion, and special racing awards
3 shall be remitted monthly to the Florida Thoroughbred
4 Breeders' Association, Inc., for the payment of awards subject
5 to the administrative fee authorized in s. 550.2625(3).
6 (2) The department shall prohibit the operation of
7 video lottery games at a retailer's premises if an agreement
8 required under subsection (1) is terminated or otherwise
9 ceases to operate or if the department determines that the
10 retailer has materially failed to comply with the terms of an
11 agreement.
12 (3) If an agreement required under subsection (1) is
13 not in place, either party may request the American
14 Arbitration Association to furnish a list of 11 arbitrators,
15 each of whom shall have at least 5 years of commercial
16 arbitration experience and no financial interest in or prior
17 relationship with any of the parties or their affiliated or
18 related entities or principals. Each party to the agreement
19 shall select a single arbitrator from the list provided within
20 10 days after receipt of the list and the arbitrators selected
21 shall choose one additional arbitrator from the same list
22 within the next 10 days.
23 (a) If an agreement is not in place 60 days after the
24 request for a list of arbitrators, the matter shall be
25 immediately submitted for mandatory binding arbitration to
26 resolve the disagreement between the parties. The three
27 arbitrators selected shall constitute the panel that will
28 arbitrate the dispute between the parties pursuant to the
29 American Arbitration Association Commercial Arbitration Rules
30 and chapter 682.
31 (b) At the conclusion of the proceedings, which must
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. CS for SB 2434
Barcode 601394
1 be within 90 days after requesting the list of arbitrators,
2 the arbitration panel shall present a proposed agreement to
3 the parties which the majority of the panel believes equitably
4 balances the rights, interests, obligations, and reasonable
5 expectations of the parties. The parties shall immediately
6 enter into such agreement, which shall satisfy the
7 requirements of subsection (1) and permit the conduct of video
8 lottery games by the video lottery retailer. The agreement is
9 effective until the last day of the license or renewal period
10 or until the parties enter into a different agreement. Each
11 party shall pay its respective costs of arbitration and
12 one-half of the costs of the arbitration panel unless the
13 parties have agreed otherwise. If the agreement remains in
14 place 120 days before the scheduled issuance of the next
15 annual license renewal, the arbitration process established in
16 this subsection shall begin again.
17 (c) If neither of the agreements required under
18 subsection (1) are in place, arbitration shall proceed
19 independently with separate lists of arbitrators, arbitration
20 panels, arbitration proceedings, and resulting agreements.
21 (d) Arbitration and the resulting agreement governing
22 the payment of purses under subsection (1) shall be limited to
23 the payment of purses from net terminal income only.
24 (4) A video lottery retailer who holds a limited
25 intertrack waging license pursuant to s. 550.6308 shall make
26 the following payments for the promotion and welfare of the
27 thoroughbred racing industry:
28 (a) An amount equal to 12.5 of the net terminal income
29 shall be paid to thoroughbred pari-mutuel permitholders that
30 are licensed to conduct live races for purses. If more than
31 one permitholder is licensed to conduct live races during the
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. CS for SB 2434
Barcode 601394
1 state thoroughbred racing season, the video lottery retailer
2 shall allocate these funds between the operating permitholders
3 on a pro rata basis based on the total live handle generated
4 during the previous racing season at the operating
5 permitholders' facilities. An amount equal to 7.5 percent of
6 the purse account generated under this paragraph shall be used
7 for Florida Owners' Awards pursuant to an agreement executed
8 by the permitholder, the Florida Thoroughbred Breeders'
9 Association, and the association representing a majority of
10 the thoroughbred racehorse owners and trainers at the
11 permitholder's facility. If an agreement is not reached 60
12 days before the commencement of the permitholder's racing
13 meet, the funds shall be used for overnight purses.
14 (b) An amount equal to 1.25 percent of the net
15 terminal income shall be paid for breeders', stallion, or
16 special racing awards. The Florida Thoroughbred Breeders'
17 Association may receive these payments from the video lottery
18 retailer and make payments of awards earned. The Florida
19 Thoroughbred Breeders' Association may withhold up to 10
20 percent of the permitholder's payments under this paragraph as
21 a fee for administering the payments of awards and for the
22 general promotion of the industry. The video lottery retailer
23 shall make weekly payments to the permitholders and to the
24 Florida Thoroughbred Breeders' Association at the same time it
25 remits its allocation to the department.
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28 ================ T I T L E A M E N D M E N T ===============
29 And the title is amended as follows:
30 On page 1, line 30, through
31 page 2, line 3, delete those lines
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. CS for SB 2434
Barcode 601394
1 and insert:
2 execute certain agreements governing the
3 payment of purses and special thoroughbred
4 racing awards; requiring the remittance of
5 funds pursuant to such agreements; authorizing
6 the department to sanction certain breeders;
7 prohibiting the operation of video lottery
8 games in the absence of agreements; requiring
9 arbitration if agreements are not in place;
10 requiring the video lottery retailer to make
11 certain payments for the promotion of the
12 racing industry; creating s. 24.133,
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