Florida Senate - 2011                        COMMITTEE AMENDMENT
       Bill No. SB 812
       
       
       
       
       
       
                                Barcode 683530                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  03/16/2011           .                                
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       The Committee on Regulated Industries (Diaz de la Portilla)
       recommended the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. This act may be cited as the “Internet Poker
    6  Consumer Protection and Revenue Generation Act.”
    7         Section 2. Section 849.087, Florida Statutes, is created to
    8  read:
    9         849.087 Intrastate Internet poker authorized.—
   10         (1) LEGISLATIVE INTENT.—It is the intent of the Legislature
   11  to create a framework for the state to regulate intrastate
   12  Internet poker which can ensure consumer protections and
   13  additional revenue to the state by authorizing, implementing,
   14  and creating a licensing and regulatory structure and system of
   15  intrastate Internet poker to:
   16         (a) Provide that intrastate Internet poker is offered for
   17  play only in a manner that is lawful under the federal Unlawful
   18  Internet Gambling Enforcement Act of 2006.
   19         (b) Provide a new source of revenue that will generate
   20  additional positive economic benefits to the state through the
   21  authorization of lawful and regulated intrastate Internet poker
   22  in Florida instead of flowing offshore to unregulated foreign
   23  operators and markets.
   24         (c) Create a contractual relationship with one or more
   25  Internet poker hub operators having the technical expertise to
   26  ensure that wagering authorized by this section is offered only
   27  to registered players who are at least 18 years of age and
   28  physically present within the borders of this state at the time
   29  of play.
   30         (d) Provide for a competitive procurement process to select
   31  one or more Internet poker hub operators that are qualified to
   32  be licensed by the state and meet all statutory, regulatory, and
   33  contractual requirements of the state while protecting
   34  registered poker players.
   35         (e) Provide for a licensed cardroom operator to become a
   36  licensed provider of intrastate Internet poker through Internet
   37  poker hub operators.
   38         (f) Ensure that the state is able to collect all taxes and
   39  fees from the play of intrastate Internet poker.
   40         (g) Create a system to protect each registered poker
   41  player’s private information and prevent fraud and identity
   42  theft and ensure that the player’s financial transactions are
   43  processed in a secure and transparent fashion.
   44         (h) Ensure that the regulatory agency has unlimited access
   45  to the premises and records of the Internet poker hub operators
   46  and cardroom affiliates to ensure strict compliance with its
   47  regulations concerning credit authorization, account access, and
   48  other security provisions.
   49         (i) Require the Internet poker hub operators to provide
   50  accessible customer service to registered poker players.
   51         (j) Require the Internet poker hub operator’s Internet site
   52  to contain information relating to problem gambling, including a
   53  telephone number that an individual may call to seek information
   54  and assistance for a potential gambling addiction.
   55         (2) DEFINITIONS.—Unless otherwise clearly required by the
   56  context, as used in this section:
   57         (a) “Authorized game” means a game or series of games of
   58  poker, which may include tournaments, which are played in a
   59  nonbanking manner on a state Internet poker network.
   60         (b) “Cardroom affiliate” means a licensed cardroom operator
   61  as defined in s. 849.086 who maintains an Internet site as a
   62  portal into a state Internet poker network.
   63         (c) “Convicted” means having been found guilty, regardless
   64  of adjudication, as a result of a jury verdict, nonjury trial,
   65  or entry of a plea of guilty or nolo contendere.
   66         (d) “Department” means the Department of Business and
   67  Professional Regulation.
   68         (e) “Division” means the Division of Pari-mutuel Wagering
   69  of the department.
   70         (f) “Gross receipts” means the total amount of money
   71  received by an Internet poker hub operator from registered
   72  players for participation in authorized games.
   73         (g) “Internet poker hub operator” or “poker hub operator”
   74  means a computer system operator that is licensed by the state
   75  and contracts with the state to operate a state Internet poker
   76  network.
   77         (h) “Intrastate Internet poker” means authorized games of
   78  poker played over the Internet by registered players who are
   79  physically present within the borders of this state at the time
   80  of play.
   81         (i) “Liquidity” means the total number of registered
   82  players available in a state Internet poker network.
   83         (j) “Nonbanking game” means an authorized game in which an
   84  Internet poker hub operator or cardroom affiliate is not a
   85  participant and has no financial stake in the outcome of the
   86  authorized game.
   87         (k) “Player incentives” means any bonuses, rewards, prizes,
   88  or other types of promotional items provided to a registered
   89  player by an Internet poker hub operator or cardroom affiliate
   90  as an incentive to begin or continue playing on a state Internet
   91  poker network.
   92         (l) “Rake” means a set fee or percentage of the pot
   93  assessed by an Internet poker hub operator for providing the
   94  Internet poker services to registered players for the right to
   95  participate in an authorized game conducted by the poker hub
   96  operator.
   97         (m) “Registered player” means a person who is registered
   98  with a poker hub operator under this section to participate in
   99  an authorized game conducted on a state Internet poker network.
  100         (n) “State Internet poker network” means a computer system
  101  operated by one or more Internet poker hub operators which
  102  authorizes the playing of and wagering on intrastate Internet
  103  poker by registered players through the website portals of
  104  cardroom affiliates.
  105         (o) “Tournament fee” means a set fee assessed to registered
  106  players by an Internet poker hub operator for providing the
  107  Internet poker tournament services.
  108         (3) INTRASTATE INTERNET POKER AUTHORIZED.—
  109         (a) Under the Unlawful Internet Gambling Enforcement Act of
  110  2006, a state is not precluded from regulating and conducting
  111  intrastate Internet poker as long as all players and the online
  112  wagering activities are located within the state.
  113         (b) Notwithstanding any other provision of law, a person in
  114  Florida may participate as a registered player in an authorized
  115  game or tournament provided on a state Internet poker network by
  116  a licensed cardroom affiliate or may operate a state Internet
  117  poker network as a licensed Internet poker hub operator if such
  118  game and poker operations are conducted strictly in accordance
  119  with the provisions of this section and federal law.
  120         (4) AUTHORITY OF DIVISION.—The division shall administer
  121  this section and regulate the operation of a state Internet
  122  poker network, the Internet poker hub operators, the cardroom
  123  affiliates, and the play of intrastate Internet poker under this
  124  section and the rules adopted pursuant to this section, and is
  125  authorized to:
  126         (a) Adopt rules related to Internet poker, including, but
  127  not limited to, rules governing the issuance of operator and
  128  individual occupational licenses to Internet poker hub
  129  operators, cardroom affiliates, and their employees; operation
  130  of a state Internet poker network and technical system
  131  requirements; security of the financial information of
  132  registered players and registered player accounts; bonuses,
  133  awards, promotions, and other incentives to registered players;
  134  recordkeeping and reporting requirements; the distribution of
  135  Internet poker income; and the imposition and collection of all
  136  fees and taxes imposed by this section.
  137         (b) Conduct investigations and monitor operation of a state
  138  Internet poker network and the playing of authorized games on a
  139  network.
  140         (c) Review the books, accounts, and records of any current
  141  or former Internet poker hub operator or cardroom affiliate.
  142         (d) Suspend or revoke any license, after a hearing, for any
  143  violation of this section or the rules adopted pursuant to this
  144  section.
  145         (e) Take testimony, issue summons and subpoenas for any
  146  witness, and issue subpoenas duces tecum in connection with any
  147  matter within its jurisdiction.
  148         (f) Monitor and ensure proper collection of taxes and fees
  149  imposed by this section. The division shall monitor, audit, and
  150  verify the cash flow and accounting of a state Internet poker
  151  network revenue for any given operating day.
  152         (g) Monitor and ensure that the playing of Internet poker
  153  is conducted fairly and that all personal and financial
  154  information provided by registered players is protected by the
  155  Internet poker hub operators.
  156         (5) INTERNET POKER HUB OPERATOR LICENSE REQUIRED;
  157  APPLICATION.—A person may not operate as an Internet poker hub
  158  operator in this state unless the person holds a valid Internet
  159  poker hub operator license issued under this section.
  160         (a) Only a person holding a valid Internet poker hub
  161  operator license issued by the division may provide intrastate
  162  Internet poker for play to registered players.
  163         (b) An Internet poker hub operator must be an entity
  164  authorized to conduct business in this state.
  165         (c) A person seeking a license or renewal of a license to
  166  operate as an Internet poker hub operator shall make application
  167  on forms prescribed by the division. Applications for Internet
  168  poker hub operator licenses shall contain all of the information
  169  the division, by rule, determines is required to ensure
  170  eligibility under this section.
  171         (d) As a condition of licensure and to maintain continued
  172  authority to conduct intrastate Internet poker, an Internet
  173  poker hub operator licensee must provide the documentation
  174  required under this section on a timely basis to the division
  175  and the documentation must be appropriate, current, and
  176  accurate. A change in ownership or interest of an Internet poker
  177  hub operator licensee of 5 percent or more of the stock or other
  178  evidence of ownership or equity in an Internet poker hub
  179  operator licensee or any parent corporation or other business
  180  entity that in any way owns or controls an Internet poker hub
  181  operator licensee must be approved by the division before the
  182  change, unless the owner is an existing holder of the license
  183  who was previously approved by the division. A change in
  184  ownership or interest of less than 5 percent which results in a
  185  cumulative ownership or interest of 5 percent or more must be
  186  approved by the division before the change, unless the owner is
  187  an existing holder of the license who was previously approved by
  188  the division. The division may then conduct an investigation to
  189  ensure that the license is properly updated to show the change
  190  in ownership or interest. Reporting is not required under this
  191  paragraph if the person is holding 5 percent or less of the
  192  equity or securities of a corporate owner of an Internet poker
  193  hub operator licensee that has its securities registered
  194  pursuant to s. 12 of the Securities Exchange Act of 1934, 15
  195  U.S.C. ss. 78a-78kk, and if the corporation or entity files with
  196  the United States Securities and Exchange Commission the reports
  197  required by s. 13 of that act or if the securities of the
  198  corporation or entity are regularly traded on an established
  199  securities market in the United States.
  200         (e) Any applicant and each licensee shall pay all fees as
  201  required in subsections (24) and (25).
  202         (6) SELECTION OF AN INTERNET POKER HUB OPERATOR BY
  203  COMPETITIVE PROCUREMENT PROCESS; EVALUATION.—
  204         (a) The division shall, subject to a competitive
  205  procurement process, select no more than three Internet poker
  206  hub operator applicants that meet the licensure and technical
  207  requirements and expertise to provide services for lawful
  208  intrastate Internet poker games in Florida. The applicants must
  209  demonstrate the ability to ensure that intrastate Internet poker
  210  is offered only to registered players who are at least 18 years
  211  of age and who are physically present within the borders of this
  212  state at the time of play.
  213         (b) After each year of operation of intrastate Internet
  214  poker, the division shall review and evaluate the current level
  215  of liquidity in the state Internet poker network to determine if
  216  there is a need to license additional Internet poker hub
  217  operators, if the maximum number of Internet poker hub operators
  218  has not already been authorized. If the division finds there is
  219  sufficient evidence to support licensing additional Internet
  220  poker hub operators, then the division may select additional
  221  Internet poker hub operators pursuant to this subsection and the
  222  qualifications specified in subsection (7). Notwithstanding the
  223  power to license additional Internet poker hub operators under
  224  this paragraph, only three Internet poker hub operators may be
  225  licensed at any one time in the state.
  226         (7) QUALIFICATIONS FOR AN INTERNET POKER HUB OPERATOR.—For
  227  the purposes of this section, the division shall consider all of
  228  the following as minimum qualifications to determine whether an
  229  Internet poker hub operator applicant or any subcontractor
  230  included in the hub operator applicant’s state application is
  231  legally, technically, and financially qualified to become the
  232  state’s Internet poker hub operator:
  233         (a) The applicant is an entity authorized to conduct
  234  business in this state.
  235         (b) The applicant has not accepted any wager of money or
  236  other consideration on any online gambling activity, including
  237  poker, from any Florida resident since October 13, 2006.
  238  However, this paragraph does not disqualify an applicant or
  239  subcontractor who accepts online pari-mutuel wagers from any
  240  Florida resident through a legal online pari-mutuel wagering
  241  entity authorized in another state.
  242         (c) The applicant’s executives and key employees meet the
  243  requirements to obtain intrastate Internet poker occupational
  244  licenses from the division, as set forth in subsection (12).
  245         (d) The applicant has existing and established experience
  246  with Internet gaming, or is licensed to conduct Internet gaming
  247  activities, in one or more jurisdictions anywhere in the world
  248  where Internet gaming is legal and regulated.
  249         (e) The applicant and all entities with an ownership
  250  interest in the applicant have demonstrated compliance with all
  251  federal and state laws in the jurisdictions in which they
  252  provide services.
  253         (f) The applicant has provided all necessary documentation
  254  and information relating to all proposed subcontractors of the
  255  applicant.
  256         (g) The applicant has provided a description of how it will
  257  facilitate compliance with all of the standards set forth in
  258  this section, including, but not limited to, those for:
  259         1. Registered player processes and requirements relating to
  260  intrastate play, age verification, and exclusion of problem
  261  gamblers.
  262         2. Network system requirements, including, but not limited
  263  to, connectivity, hardware, software, anti-fraud systems, virus
  264  prevention, data protection, access controls, firewalls,
  265  disaster recovery, and redundancy.
  266         3. Gaming systems, including, but not limited to, hardware
  267  and software that ensures that: games are legal, games are
  268  independent and fair, game and betting rules are available to
  269  all registered players, and all data used for the conduct of
  270  each game are randomly generated and unpredictable.
  271         4. Ongoing auditing by the division and accounting systems,
  272  including, but not limited to, those for registered player
  273  accounts, participation fees, distribution of funds to
  274  registered players, and distribution of revenue to the state.
  275         (h) The applicant has provided all other documentation or
  276  information that the division, by rule, has determined is
  277  required to ensure that the applicant is legally, technically,
  278  and financially qualified to enter into a contract to become the
  279  state’s Internet poker hub operator.
  280         (8) SUBMISSION OF THE APPLICATION FOR AN INTERNET POKER HUB
  281  OPERATOR.—In addition to demonstrating that the applicant is
  282  legally, technically, and financially qualified to become an
  283  Internet poker hub operator in the state, the applicant must
  284  describe how it will fulfill the contractual role envisaged by
  285  this section. The applicant shall provide all of the following:
  286         (a) All necessary documentation and information relating to
  287  the applicant and its direct and indirect owners, including, but
  288  not limited to:
  289         1. Documentation that the entity is authorized to conduct
  290  business in this state and other founding documents.
  291         2. Current and historical audited financial and accounting
  292  records.
  293         3. Any and all documents relating to legal and regulatory
  294  proceedings in this state and other jurisdictions involving the
  295  applicant.
  296         4. Any and all documents relating to the applicant’s
  297  business history, including all state and federal tax filings.
  298         5. Any and all documents relating to the nature and sources
  299  of the applicant’s financing.
  300         6. Any and all documentation that demonstrates that the
  301  applicant is financially qualified to perform the obligations of
  302  an Internet poker hub operator as described in this section.
  303         7. Any other documentation or information that the
  304  division, by rule, determines is required to ensure eligibility.
  305         (b) All necessary documentation and information relating to
  306  any of the subcontractors of the Internet poker hub operator
  307  applicant, including, but not limited to:
  308         1. A description of the services to be provided by each
  309  subcontractor.
  310         2. Information for each subcontractor as set forth in this
  311  section.
  312         3. Any other documentation or information that the
  313  division, by rule, determines is required to ensure eligibility.
  314         (c) A description as to how the applicant will facilitate
  315  compliance with all of the standards set forth in this section,
  316  including, but not limited to, those for:
  317         1. Registered player requirements relating to:
  318         a. Intrastate play.
  319         b. Age verification.
  320         c. Exclusion of problem gamblers.
  321         2. Network system requirements, including, but not limited
  322  to:
  323         a. Connectivity.
  324         b. Hardware.
  325         c. Software.
  326         d. Anti-fraud systems.
  327         e. Virus prevention.
  328         f. Data protection.
  329         g. Access controls.
  330         h. Firewalls.
  331         i. Disaster recovery.
  332         j. Redundancy.
  333         3. Gaming systems, including, but not limited to, hardware
  334  and software that ensures that:
  335         a. Games are legal.
  336         b. Games are independent and fair.
  337         c. Game and betting rules are available to all registered
  338  players.
  339         d. All data used for the conduct of each game are randomly
  340  generated and unpredictable.
  341         4. Accounting systems, including, but not limited to, those
  342  for:
  343         a. Registered player accounts.
  344         b. Participation fees.
  345         c. Transparency and reporting to the division.
  346         d. Distribution of revenue to the state, funds pursuant to
  347  contract, and funds to registered players.
  348         e. Ongoing auditing.
  349         (d) A description of the games and services the applicant
  350  proposes to offer to registered players.
  351         (e) A description by the applicant of how it will ensure
  352  that registered players are at least 18 years of age or older
  353  and facilitate registered player protections and resolution of
  354  player disputes.
  355         (f) Upon submission of the initial application and
  356  proposal, the applicant shall pay all fees required in
  357  subsections (23) and (24).
  358         (9) ANNUAL BOND REQUIRED.—The holder of a license to be an
  359  Internet poker hub operator in the state shall be financially
  360  and otherwise responsible for the operation of a state Internet
  361  poker network and for the conduct of any employee involved in
  362  the operation of the online poker network. Before the issuance
  363  of an Internet poker hub operator license, each qualified
  364  applicant for such a license must provide evidence of a surety
  365  bond in the amount of $1 million, payable to the state, for each
  366  year that the licensee is licensed to be an Internet poker hub
  367  operator in the state. The bond shall be issued by a surety or
  368  sureties authorized to do business in the state and approved by
  369  the division and the Chief Financial Officer in his or her
  370  capacity as treasurer of the division. The bond shall guarantee
  371  that an Internet poker hub operator fulfills all financial
  372  requirements of the contract. Such bond shall be kept in full
  373  force and effect by an Internet poker hub operator during the
  374  term of the license.
  375         (10) CONTRACTUAL RELATIONSHIP; RIGHT TO TERMINATE
  376  CONTRACT.—An Internet poker hub operator shall comply with the
  377  terms of its contract with the state and this section.
  378         (a) The accepted proposal agreed to by the division and an
  379  Internet poker hub operator shall constitute the contract
  380  between the state and the Internet poker hub operator.
  381         (b) The contract between the state and an Internet poker
  382  hub operator is for a 5-year period and may be renewed for a
  383  period equal to the original contract, if agreed to by both
  384  parties.
  385         (c) The contract between the state and an Internet poker
  386  hub operator may be amended by mutual written agreement of the
  387  division and the Internet poker hub operator.
  388         (d) If this section is amended in such a way that affects
  389  the play of intrastate Internet poker or affects the operation
  390  of intrasate Internet poker by the licensed Internet poker hub
  391  operators contrary to the existing contract with the state, an
  392  Internet poker hub operator may declare the contract null and
  393  void within 90 days after the effective date of the amendment
  394  and must provide at least 60 days prior written notice to the
  395  division of such intent. Failure to provide notice of such
  396  intent to declare the contract null and void within 60 days of
  397  the effective date of any amendment to this section constitutes
  398  an agreement to be bound by the amendments adopted after the
  399  terms of the contract are established.
  400         (e) In the event of commercial infeasibility due to a
  401  change in federal law rendering the provision of intrastate
  402  poker services illegal, an Internet poker hub operator or the
  403  division may abandon the contract after providing the other
  404  party with at least 90 days’ written notice of its intent to end
  405  the contract and a statement explaining its interpretation that
  406  continuing to provide services under the contract is
  407  commercially infeasible.
  408         (f) If a dispute arises between the parties to the
  409  contract, either the division or the Internet poker hub operator
  410  may go through an administrative law or circuit court for an
  411  initial interpretation of the contract and the rights and
  412  responsibilities in the contract.
  413         (11) CARDROOM AFFILIATE LICENSE REQUIRED; APPLICATION;
  414  FEES.—A cardroom affiliate license may only be issued or renewed
  415  to a cardroom operator who is licensed under s. 849.086,
  416  actively operates a cardroom with a minimum of 10 licensed
  417  tables, and complies with all the requirements of s. 849.086 and
  418  the rules adopted pursuant to that section.
  419         (a) Only those persons holding a valid cardroom affiliate
  420  license issued by the division may provide intrastate Internet
  421  poker for play to registered players through its website.
  422         (b) Prior to providing intrastate Internet poker for play
  423  to registered players, a cardroom affiliate licensee must have
  424  entered into a contractual relationship with a licensed Internet
  425  poker hub operator to offer the play of Internet poker. A copy
  426  of the contract must be on file with the division.
  427         (c) After the initial cardroom affiliate license is
  428  granted, the annual application for the renewal of that license
  429  shall be made in conjunction with the applicant’s annual
  430  application for its cardroom and pari-mutuel licenses under s.
  431  849.086 and chapter 550, respectively.
  432         (d) A person seeking a license or renewal of a license to
  433  operate as a cardroom affiliate shall make the application on
  434  forms prescribed by the division. An application for a cardroom
  435  affiliate license shall contain all of the information the
  436  division, by rule, determines is required to ensure eligibility.
  437         (e) As a condition of licensure and to maintain continued
  438  authority for the conduct of intrastate Internet poker, the
  439  cardroom affiliate licensee must provide the documentation
  440  required under this section on a timely basis to the division
  441  and the documentation must be appropriate, current, and
  442  accurate.
  443         (f) As a condition of eligibility for license renewal, a
  444  cardroom affiliate must have, as either an individual or as part
  445  of a coalition as allowed in subsection (26)(d), an active and
  446  operating portal, must have a current contract on file with the
  447  division, and must have contributed at least 1 percent of the
  448  total revenue generated from the play of intrastate Internet
  449  poker through the Internet poker hub the cardroom affiliate has
  450  contracted with from the previous state fiscal year, as
  451  determined by the division.
  452         (g) The annual cardroom affiliate license fee shall be
  453  $1,000 as referenced in subsection (23)(c).
  454         (h) The division shall adopt rules regarding cardroom
  455  affiliate licenses and renewals.
  456         (12) BUSINESS AND EMPLOYEE OCCUPATIONAL LICENSE REQUIRED;
  457  APPLICATION; FEES.—
  458         (a) A person employed by or otherwise working for an
  459  Internet poker hub operator or a cardroom affiliate in any
  460  capacity related to and while conducting intrastate Internet
  461  poker operations must hold a valid occupational license issued
  462  by the division.
  463         (b) An Internet poker hub operator or a cardroom affiliate
  464  may not employ or allow to be employed any person in any
  465  capacity related to the operation of intrastate Internet poker
  466  unless the person holds a valid occupational license.
  467         (c) An Internet poker hub operator or cardroom affiliate
  468  may not contract with, or otherwise do business with, a business
  469  required to hold a valid intrastate Internet poker business
  470  occupational license, unless the business holds such a valid
  471  license.
  472         (d) A proprietorship, partnership, corporation,
  473  subcontractor, or other entity must obtain a valid intrastate
  474  Internet poker business occupational license issued by the
  475  division to partner with, contract with, be associated with, or
  476  participate in the conduct of intrastate Internet poker
  477  operations with an Internet poker hub operator or a cardroom
  478  affiliate.
  479         (e) The division shall establish, by rule, a schedule for
  480  the annual renewal of Internet poker hub operator and cardroom
  481  affiliate occupational licenses. Intrastate Internet poker
  482  occupational licenses are not transferable.
  483         (f) A person seeking an intrastate Internet poker
  484  occupational license, or renewal of such a license, shall make
  485  the application on forms prescribed by the division and include
  486  payment of the appropriate application fee. An application for
  487  an intrastate Internet poker occupational license shall contain
  488  all of the information the division, by rule, determines is
  489  required to ensure eligibility under this section.
  490         (g) The division shall adopt rules regarding intrastate
  491  Internet poker occupational licenses and renewals.
  492         (h) An intrastate Internet poker occupational license is
  493  valid for the same term as a pari-mutuel occupational license
  494  issued under s. 550.105(1).
  495         (i) Pursuant to rules adopted by the division, any person
  496  may apply for and, if qualified, be issued an intrastate
  497  Internet poker occupational license valid for a period of 3
  498  years upon payment of the full occupational license fee for each
  499  of the 3 years for which the license is issued. The intrastate
  500  Internet poker occupational license is valid during its
  501  specified term at any Internet poker hub operator or a cardroom
  502  affiliate where intrastate Internet poker is authorized to be
  503  conducted.
  504         (j) The intrastate Internet poker occupational license fee
  505  for initial application and annual renewal shall be determined
  506  by rule of the division but may not exceed $50 for an
  507  occupational license for an employee of an Internet poker hub
  508  operator or a cardroom affiliate licensee or $1,000 for a
  509  business occupational license for nonemployees of the licensee
  510  providing goods or services to an Internet poker hub operator or
  511  a cardroom affiliate occupational licensee. Failure to pay the
  512  required fee constitutes grounds for disciplinary action by the
  513  division against an Internet poker hub operator or a cardroom
  514  affiliate occupational licensee.
  515         (k) A person holding a valid individual cardroom
  516  occupational license issued by the division under s. 849.086(6)
  517  is not required to obtain an individual employee occupational
  518  license under this subsection.
  519         (13) BUSINESS AND EMPLOYEE OCCUPATIONAL LICENSE DENIAL,
  520  REVOCATION, SUSPENSION, LIMITATION, OR NONRENEWAL.—The division
  521  may:
  522         (a) Deny an application for, or revoke, suspend, or place
  523  conditions or restrictions on, a license of a person or entity
  524  that has been refused a license by any other state gaming
  525  commission, governmental department, agency, or other authority
  526  exercising regulatory jurisdiction over the gaming of another
  527  state or jurisdiction.
  528         (b) Deny an application for, or suspend or place conditions
  529  or restrictions on, a license of any person or entity that is
  530  under suspension or has unpaid fines in another state or
  531  jurisdiction.
  532         (c) Deny, suspend, revoke, or refuse to renew any Internet
  533  poker hub operator or cardroom affiliate occupational license if
  534  the applicant for the license or the licensee has violated this
  535  section or the rules of the division governing the conduct of
  536  persons connected with the play of intrastate Internet poker.
  537         (d) Deny, suspend, revoke, or refuse to renew any Internet
  538  poker hub operator or cardroom affiliate occupational license if
  539  the applicant for the license or the licensee has been convicted
  540  in this state, in any other state, or under the laws of the
  541  United States of a capital felony, a felony, or an offense in
  542  any other state that would be a felony under the laws of this
  543  state involving arson; trafficking in, conspiracy to traffic in,
  544  smuggling, importing, conspiracy to smuggle or import, or
  545  delivery, sale, or distribution of a controlled substance;
  546  racketeering; or a crime involving a lack of good moral
  547  character, or has had a gaming license revoked by this state or
  548  any other jurisdiction for any gaming-related offense.
  549         (e) Deny, revoke, or refuse to renew any Internet poker hub
  550  operator or cardroom affiliate occupational license if the
  551  applicant for the license or the licensee has been convicted of
  552  a felony or misdemeanor in this state, in any other state, or
  553  under the laws of the United States if such felony or
  554  misdemeanor is related to gambling or bookmaking as described in
  555  s. 849.25.
  556         (14) BUSINESS AND EMPLOYEE OCCUPATIONAL LICENSE;
  557  FINGERPRINTS; FEES; CITATIONS.—
  558         (a) A person employed by or working with an Internet poker
  559  hub operator or a cardroom affiliate must submit fingerprints
  560  for a criminal history record check and may not have been
  561  convicted of any disqualifying criminal offense specified in
  562  subsection (7). Division employees and law enforcement officers
  563  assigned by their employing agencies to work within the premises
  564  as part of their official duties are excluded from the criminal
  565  history record check requirements under this subsection.
  566         (b) Fingerprints for all intrastate Internet poker
  567  occupational license applications shall be taken in a manner
  568  approved by the division upon initial application, or as
  569  required thereafter by rule of the division, and shall be
  570  submitted electronically to the Department of Law Enforcement
  571  for state processing. The Department of Law Enforcement shall
  572  forward the fingerprints to the Federal Bureau of Investigation
  573  for national processing. The results of the criminal history
  574  record check shall be returned to the division for purposes of
  575  screening. The division requirements under this subsection shall
  576  be instituted in consultation with the Department of Law
  577  Enforcement.
  578         (c) The cost of processing fingerprints and conducting a
  579  criminal history record check for an intrastate Internet poker
  580  occupational license shall be borne by the person being checked.
  581  The Department of Law Enforcement may invoice the division for
  582  the fingerprints submitted each month.
  583         (d) All fingerprints submitted to the Department of Law
  584  Enforcement and required by this section shall be retained by
  585  the Department of Law Enforcement and entered into the statewide
  586  automated fingerprint identification system as authorized by s.
  587  943.05(2)(b) and shall be available for all purposes and uses
  588  authorized for arrest fingerprint cards entered into the
  589  statewide automated fingerprint identification system under s.
  590  943.051.
  591         (e) The Department of Law Enforcement shall search all
  592  arrest fingerprints received under s. 943.051 against the
  593  fingerprints retained in the statewide automated fingerprint
  594  identification system. Any arrest record that is identified with
  595  the retained fingerprints of a person subject to the criminal
  596  history screening requirements of this section shall be reported
  597  to the division. Each licensed facility shall pay a fee to the
  598  division for the cost of retention of the fingerprints and the
  599  ongoing searches under this paragraph. The division shall
  600  forward the payment to the Department of Law Enforcement. The
  601  amount of the fee to be imposed for performing these searches
  602  and the procedures for the retention of licensee fingerprints
  603  shall be as established by rule of the Department of Law
  604  Enforcement. The division shall inform the Department of Law
  605  Enforcement of any change in the license status of licensees
  606  whose fingerprints are retained under paragraph (d).
  607         (f) The division shall request the Department of Law
  608  Enforcement to forward the fingerprints to the Federal Bureau of
  609  Investigation for a national criminal history records check
  610  every 3 years following issuance of a license. If the
  611  fingerprints of a person who is licensed have not been retained
  612  by the Department of Law Enforcement, the person must file a
  613  complete set of fingerprints as provided for in paragraph (a).
  614  The division shall collect the fees for the cost of the national
  615  criminal history record check under this paragraph and shall
  616  forward the payment to the Department of Law Enforcement. The
  617  cost of processing fingerprints and conducting a criminal
  618  history record check under this paragraph for an intrastate
  619  Internet poker occupational license shall be borne by the person
  620  being checked. The Department of Law Enforcement may invoice the
  621  division for the fingerprints submitted each month. Under
  622  penalty of perjury, each person who is licensed or who is
  623  fingerprinted as required by this subsection must agree to
  624  inform the division within 48 hours if he or she is convicted of
  625  or has entered a plea of guilty or nolo contendere to any
  626  disqualifying offense, regardless of adjudication.
  627         (g) All moneys collected under this subsection shall be
  628  deposited into the Pari-mutuel Wagering Trust Fund.
  629         (h) The division may deny, revoke, or suspend any
  630  occupational license if the applicant or holder of the license
  631  accumulates unpaid obligations, defaults in obligations, or
  632  issues drafts or checks that are dishonored or for which payment
  633  is refused without reasonable cause.
  634         (i) The division may fine or suspend, revoke, or place
  635  conditions upon the license of any licensee who provides false
  636  information under oath regarding an application for a license or
  637  an investigation by the division.
  638         (j) The division may impose a civil fine of up to $10,000
  639  for each violation of this section or the rules of the division
  640  in addition to or in lieu of any other penalty provided for in
  641  this subsection. The division may adopt a penalty schedule for
  642  violations of this section or any rule adopted pursuant to this
  643  section for which it would impose a fine in lieu of a suspension
  644  and adopt rules allowing for the issuance of citations,
  645  including procedures to address such citations, to persons who
  646  violate such rules. In addition to any other penalty provided by
  647  law, the division may exclude from all licensed pari-mutuel,
  648  cardroom, and slot machine facilities in this state, for a
  649  period not to exceed the period of suspension, revocation, or
  650  ineligibility, any person whose occupational license application
  651  has been declared ineligible to hold an occupational license or
  652  whose occupational license has been suspended or revoked by the
  653  division.
  654         (15) INTRASTATE INTERNET POKER; AUTHORIZED GAMES.—
  655         (a) In order to offer a specific game of poker for play, an
  656  Internet poker hub operator shall provide the division with:
  657         1. A description of any game of poker and the betting rules
  658  it proposes to offer to registered players; and
  659         2. Documentation relating to development and testing of the
  660  game’s software.
  661         (b) Upon submission of the information required in
  662  paragraph (a), an Internet poker hub operator may begin offering
  663  the game. If the division does not object to the proposed game
  664  of poker within 30 days after receipt of the submission, the
  665  game will be considered authorized and the Internet poker hub
  666  operator submitting the proposal may continue to offer the game
  667  to registered players.
  668         (c) Games and betting events shall be operated strictly in
  669  accordance with the specified game and betting rules.
  670         (d) An Internet poker hub operator shall ensure that the
  671  authorized games of poker are fair. For each proposed or
  672  authorized game offered for play, the gaming system shall
  673  display the following information:
  674         1. The name of the game.
  675         2. Any restrictions on play.
  676         3. The rules of the game.
  677         4. All instructions on how to play.
  678         5. The unit and total bets permitted.
  679         6. The registered player’s current account balance, which
  680  shall be updated in real time.
  681         7. Any other information that an Internet poker hub
  682  operator determines is necessary for the registered player to
  683  have in real time to compete fairly in the proposed or
  684  authorized game.
  685         (e) All proposed and authorized game results shall be
  686  conducted in such a fashion that:
  687         1. Data used to create results shall be unpredictable such
  688  that it is infeasible to predict the next occurrence in a game,
  689  given complete knowledge of the algorithm or hardware generating
  690  the sequence, and all previously generated numbers.
  691         2. The game or any game event outcome shall not be affected
  692  by the effective bandwidth, link utilization, bit error rate, or
  693  other characteristic of the communications channel between the
  694  gaming system and the playing device used by the player.
  695         (f) An Internet poker hub operator shall deploy controls
  696  and technology to ensure the ability to minimize fraud or
  697  cheating through collusion, such as external exchange of
  698  information between different players, or any other means.
  699         1. If an Internet poker hub operator becomes aware that
  700  fraud or cheating is taking place or has taken place, it shall
  701  immediately take steps to stop such activities and inform the
  702  division of all relevant facts.
  703         2. An Internet poker hub operator shall immediately inform
  704  the division of any complaints of fraud or collusion and shall
  705  investigate whether the complaints are true and shall
  706  expeditiously act to prevent further fraud or collusion from
  707  taking place on the Internet poker hub. An Internet poker hub
  708  operator shall report the results of the investigation in
  709  writing to the division within 24 hours after the complaint and
  710  shall continue to report every 24 hours until its investigation
  711  is concluded. This paragraph does not prevent the division from
  712  conducting an independent investigation or initiating an
  713  administrative action to protect registered players from fraud
  714  and collusion on the Internet poker hub site and does not
  715  prohibit a registered player, the Internet poker hub operator, a
  716  cardroom affiliate, or the division from reporting suspected
  717  criminal activities to law enforcement officials.
  718         3. A registered player may not bring an action for damages
  719  against an Internet poker hub operator for preventing fraud or
  720  cheating or attempting to prevent fraud or cheating if the
  721  Internet poker hub operator can demonstrate that it acted to
  722  prevent such actions as soon as it became aware of them.
  723         (g) If the gaming server or software does not allow a game
  724  to be completed, the hand shall be voided and all funds relating
  725  to the incomplete hand shall be returned to the registered
  726  player’s account.
  727         (16) REGISTERED PLAYERS; ELIGIBILITY.—
  728         (a) All registered players must be located within this
  729  state at the time of play of intrastate Internet poker.
  730         (b) A person who has not attained 18 years of age may not
  731  be a registered player or play intrastate Internet poker.
  732         (c) All Internet poker hub operators and cardroom
  733  affiliates shall exclude from play any person who has submitted
  734  a completed Internet Poker Self-Exclusion Form.
  735         1. All Internet poker hub operators and cardroom affiliates
  736  shall have an Internet Poker Self-Exclusion Form available
  737  online and accessible on the Internet page that is displayed
  738  when:
  739         a. A person opens the Internet page to register as a
  740  registered player; or
  741         b. A registered player accesses the first page of the
  742  Internet page prior to playing.
  743         2. Upon receipt of a completed Internet Poker Self
  744  Exclusion Form, an Internet poker hub operator or cardroom
  745  affiliate shall immediately provide a copy of the completed form
  746  to each Internet poker hub operator, each cardroom affiliate,
  747  and the division. The division shall ensure that all other
  748  cardroom affiliates exclude the person from the play of
  749  intrastate Internet poker.
  750         3. Each Internet poker hub operator and cardroom affiliate
  751  shall retain the original form to identify persons who request
  752  to be excluded from play.
  753         4. Each Internet poker hub operator and cardroom affiliate
  754  shall prominently display a link to the website of a responsible
  755  gaming organization that is under contract with the division
  756  pursuant to s. 551.118(2) for services related to the prevention
  757  of compulsive and addictive gambling.
  758         5. A person may not bring any action against an Internet
  759  poker hub operator or a cardroom affiliate for negligence or any
  760  other claim if a person who has filled out an Internet Poker
  761  Self-Exclusion Form gains access and plays despite the request
  762  to be excluded.
  763         (17) REGISTERED PLAYER ACCOUNTS.—
  764         (a) An Internet poker hub operator shall register players
  765  and establish registered player accounts prior to play and shall
  766  ensure that the player's personally identifiable information is
  767  accessible to the player and regulators but is otherwise secure.
  768         (b) A person may not participate in any game on a state
  769  Internet poker network unless the person is registered as a
  770  player and holds an account.
  771         (c) Accounts may be established in person or by mail,
  772  telephone, or any electronic means.
  773         (d) To register and establish an account, a person must
  774  provide the following registration information:
  775         1. First name and surname.
  776         2. Principal residence address.
  777         3. Telephone number.
  778         4. Social security number.
  779         5. Legal identification or certification to prove that the
  780  person is at least 18 years of age.
  781         6. Valid email address.
  782         7. The source of funds to be used to establish the account
  783  after the registration process is complete.
  784         (e) Prior to completing the registration process, an
  785  Internet poker hub operator shall explain to the person in a
  786  conspicuous fashion the privacy policies of the Internet poker
  787  hub, and the person must assent to the following policies:
  788         1. Personal identifying information will not be shared with
  789  any nongovernment third parties except for licensed
  790  subcontractors of an Internet poker hub operator for the sole
  791  purpose of permitting registered players to participate in games
  792  on the Internet poker hub or upon receipt of a court order to
  793  subpoena such information from the Internet poker hub.
  794         2. All personally identifiable information about registered
  795  players will be shared with the division, the Department of Law
  796  Enforcement, and any other governmental agency that receives a
  797  court order to subpoena such information.
  798         (f) An Internet poker hub operator shall also require that
  799  a person agree to the terms of a use agreement applying to
  800  registered players.
  801         (g) An Internet poker hub operator shall provide a
  802  registered player with the means to update the information
  803  provided in paragraph (d).
  804         (h) An Internet poker hub operator may revoke the accounts
  805  of a registered player for the following reasons:
  806         1. The registered player provided false information in the
  807  registration process;
  808         2. The registered player has not updated registration
  809  information to keep it current; or
  810         3. The registered player has violated an Internet poker hub
  811  operator’s terms of use agreement.
  812         (i) An Internet poker hub operator may suspend or revoke
  813  the account of a registered player if the operator suspects the
  814  registered player has participated in illegal activity on a
  815  state Internet poker network.
  816         (j) An Internet poker hub operator shall establish and
  817  maintain an account for each registered player. An Internet
  818  poker hub operator shall:
  819         1. Provide a means for a registered player to put funds
  820  into an account; however, a registered player may not increase
  821  the amount in an account after a game has started and before its
  822  completion.
  823         2. Maintain records on the balance of each registered
  824  player’s account.
  825         3. Prohibit a registered player from placing a wager unless
  826  the player’s account has sufficient funds to cover the amount of
  827  the wager.
  828         4. Not provide credit to a registered player’s account or
  829  act as an agent for a credit provider to facilitate the
  830  provision of funds.
  831         5. Provide a means for a registered player to transfer
  832  money out of the player’s account.
  833         (k) An Internet poker hub operator shall put in place other
  834  systems that provide registered players with the ability to
  835  control aspects of their play. Upon registration and at each
  836  time when a registered player logs on to a state Internet poker
  837  network, an Internet poker hub operator shall permit the
  838  registered player to adjust the player’s play settings to:
  839         1. Set a limit on the deposits that can be made per day;
  840         2. Set a limit on the amount that can be wagered within a
  841  specified period of time;
  842         3. Set a limit on the losses that may incur within a
  843  specified period of time;
  844         4. Set a limit on the amount of time that can be played
  845  after logging on to the Internet poker hub; or
  846         5. Prevent the Internet poker hub from allowing the
  847  registered player to play for an indefinite period of time.
  848         (l) During play, in order to assist a registered player to
  849  decide whether to suspend play, the registered player’s screen
  850  shall:
  851         1. Indicate how long the player has been playing;
  852         2. Indicate the player’s winnings or losses since the time
  853  of last logging in;
  854         3. Give an option to the player to end the session or
  855  return to the game; and
  856         4. Require the player to confirm that the player has read
  857  the message.
  858         (18) REGISTERED PLAYER ACCOUNTS; RECORDS AND REPORTS.—
  859         (a) An Internet poker hub operator shall establish a book
  860  of accounts, regularly audit, and make all financial records
  861  available to the division. An Internet poker hub operator shall
  862  demonstrate that it has a system of maintaining records and
  863  reports that are readily available to the division. The records
  864  and reports shall include the following:
  865         1. Monthly auditable and aggregate financial statements of
  866  gaming transactions.
  867         2. Calculation of all fees payable to government.
  868         3. The identity of players.
  869         4. The balance on the player’s account at the start of a
  870  session of play.
  871         5. The wagers placed on each game time stamped by the games
  872  server.
  873         6. The result of each game time stamped by the games
  874  server.
  875         7. The amount won or lost by the player.
  876         8. The balance on the player’s account at the end of the
  877  game.
  878         (b) An Internet poker hub operator shall reconcile all data
  879  logs files regarding the registered players’ accounts on a
  880  monthly basis.
  881         (19) INTERNET POKER HUB OPERATOR; OBLIGATIONS; TECHNICAL
  882  SYSTEMS REQUIREMENTS.—
  883         (a) Before an Internet poker hub operator can begin
  884  intrastate Internet poker operations, an Internet poker hub
  885  operator shall establish a physical site in the state that will
  886  house the game and database servers and other components and
  887  equipment necessary to conduct intrastate Internet poker. In
  888  addition, managerial employees of the Internet poker hub
  889  operator who manage or oversee the daily operations of the
  890  Internet poker hub network must reside in the state.
  891         (a) An Internet poker hub operator shall put in place
  892  technical systems that materially aid the division in fulfilling
  893  its regulatory, consumer protection, and revenue-raising
  894  functions and allow the division unrestricted access to and the
  895  right to inspect the technical systems.
  896         (b) An Internet poker hub operator shall ensure that the
  897  network is protected from manipulation or tampering to affect
  898  the random probabilities of winning plays.
  899         (c) An Internet poker hub operator shall define and
  900  document its methodology for the following:
  901         1. The development, implementation, and maintenance of
  902  gaming software in a manner representative of industry best
  903  practice standards.
  904         2. Server connectivity requirements that include:
  905         a. Minimum game server connectivity requirements that
  906  ensure players are protected from losses due to connectivity
  907  problems.
  908         b. The system’s ability to recover all transactions
  909  involving player funds in the event of a failure or malfunction.
  910         c. Aborted game procedures.
  911         3. Ability of the system to recover all information
  912  required for viewing a game interrupted due to loss of
  913  connectivity.
  914         4. Consumer protection requirements.
  915         5. Responsible advertising, marketing, and promotion that
  916  ensure that players are not misled through advertising or
  917  promotional activities, and will ensure that the terms and
  918  conditions of their promotions are followed.
  919         6. Anti-money-laundering controls.
  920         7. Preventive and detective controls addressing money
  921  laundering and fraud risks which shall be documented and
  922  implemented.
  923         (d) An Internet poker hub operator shall retain all such
  924  documentation for at least 12 months.
  925         (20) FEE FOR PARTICIPATION.—An Internet poker hub operator
  926  shall charge a fee or a tournament fee to registered players for
  927  the right to participate in authorized games or tournaments
  928  conducted on a state Internet poker network. The participation
  929  fee may be a per-hand charge, a flat fee, an hourly rate, or a
  930  rake subject to the posted maximum amount but may not be based
  931  on the amount won by players. The fee shall be designated and
  932  conspicuously posted on the registered player’s screen prior to
  933  the start of each proposed or authorized game.
  934         (21) PROHIBITED RELATIONSHIPS.—
  935         (a) A proprietorship, partnership, corporation,
  936  subcontractor, or other entity must obtain a valid intrastate
  937  Internet poker business occupational license issued by the
  938  division to partner with, contract with, be associated with, or
  939  participate in the conduct of intrastate Internet poker
  940  operations with an Internet poker hub operator or a cardroom
  941  affiliate.
  942         (b) A person employed by or performing any function on
  943  behalf of the division may not:
  944         1. Be an officer, director, owner, or employee of any
  945  person or entity licensed by the division.
  946         2. Have or hold any interest, direct or indirect, in or
  947  engage in any commerce or business relationship with any person
  948  licensed by the division.
  949         (c) An employee of the division or a relative living in the
  950  same household as the employee may not play at any time on a
  951  state Internet poker network.
  952         (d) An occupational licensee of an Internet poker hub
  953  operator or a relative living in the same household as the
  954  occupational licensee may not play at any time on a state
  955  Internet poker network. This paragraph does not apply to an
  956  occupational licensee of a cardroom affiliate.
  957         (e) A cardroom affiliate licensee may not sell or lease all
  958  or a portion of a percentage of its cardroom licensed under s.
  959  849.086 to any person or entity who has accepted any wager of
  960  money or other consideration on any online gambling activity,
  961  including poker, from any Florida resident since October 13,
  962  2006. This paragraph does not apply if the person or entity who
  963  accepted the wager is licensed as an Internet poker hub operator
  964  or cardroom affiliate.
  965         (f) A cardroom affiliate licensee may not contract with any
  966  person or entity to operate the cardroom affiliate's portal link
  967  to the state Internet poker network on its website, to conduct
  968  marketing or promotional activities, or to conduct any other
  969  aspects of business associated with the play of intrastate
  970  Internet poker if that person or entity has accepted any wager
  971  of money or other consideration on any online gambling activity,
  972  including poker, from any Florida resident since October 13,
  973  2006. This paragraph does not apply if the person or entity who
  974  accepted the wager is licensed as an Internet poker hub operator
  975  or cardroom affiliate.
  976         (22) PROHIBITED ACTS; PENALTIES.—
  977         (a) An Internet poker hub operator may conduct any proposed
  978  or authorized game under subsection (16) unless specifically
  979  prohibited by the division or by this section.
  980         (b) A person who has not attained 18 years of age may not
  981  hold an intrastate Internet poker occupational license or engage
  982  in any game conducted therein.
  983         (c) It is a violation of the laws of this state for any
  984  entity to offer Internet poker for free or for money or any
  985  other consideration to individuals present in this state unless
  986  that entity can demonstrate that it is in compliance with the
  987  laws and tax regulations of the United States and of this state.
  988         (d) Any entity that has accepted any wager of money or
  989  other consideration on any online gambling activity, including
  990  poker, from any Florida resident since October 13, 2006, is not
  991  eligible to apply for licensure and participate in intrastate
  992  Internet poker in this state for a period of 3 years after the
  993  effective date of this act. However, this prohibition does not
  994  disqualify an applicant or subcontractor who accepts online
  995  pari-mutuel wagers from any Florida resident through a legal
  996  online pari-mutuel wagering entity authorized in another state.
  997         (e) Except as otherwise provided by law and in addition to
  998  any other penalty, any person who knowingly makes or causes to
  999  be made, or aids, assists, or procures another to make, a false
 1000  statement in any report, disclosure, application, or other
 1001  document required under this section or any rule adopted under
 1002  this section is subject to an administrative fine of up to
 1003  $10,000.
 1004         (f) Any person who manipulates or attempts to manipulate
 1005  the outcome, payoff, or operation of the play of intrastate
 1006  Internet poker by tampering, collusion, or fraud, or by the use
 1007  of any object, instrument, or device, by any means, commits a
 1008  felony of the third degree, punishable as provided in s.
 1009  775.082, s. 775.083, or s. 775.084.
 1010         (g) All penalties imposed and collected under this
 1011  subsection shall be deposited into the Pari-mutuel Wagering
 1012  Trust Fund.
 1013         (23) LICENSE FEES.—
 1014         (a) Upon submission of the initial application and
 1015  proposal, the applicant for an Internet poker hub operator
 1016  license shall pay an initial filing fee of $25,000 to compensate
 1017  the division for reasonably anticipated costs to be incurred to
 1018  conduct a comprehensive investigation of the applicant to
 1019  determine if the applicant is legally, technically, and
 1020  financially qualified to become an Internet poker hub operator
 1021  and is suitable for licensure. The division shall, by rule,
 1022  require the applicant to make an additional payment if necessary
 1023  to complete the investigation; however, the total amount
 1024  collected under this paragraph may not exceed the actual cost
 1025  incurred to conduct the investigation. The division shall, by
 1026  rule, set a procedure for refunding any amount of the filing fee
 1027  and additional payment collected under this paragraph which is
 1028  not used to cover the cost of the investigation.
 1029         (b) Upon submission of the initial application for an
 1030  Internet poker hub operator license, and annually thereafter, on
 1031  the anniversary date of the issuance of the initial license, an
 1032  internet poker hub operator licensee shall pay a nonrefundable
 1033  license fee of $500,000 for the succeeding 12 months of
 1034  licensure to fund the division’s regulation and oversight of the
 1035  operation and play of intrastate Internet poker.
 1036         (c) Upon submission of the initial application for a
 1037  cardroom affiliate license, and annually thereafter, as required
 1038  in subsection (11)(b), a cardroom affiliate licensee shall pay a
 1039  nonrefundable license fee of $1,000 for the succeeding 12 months
 1040  of licensure.
 1041         (d) All funds received under this section shall be
 1042  deposited by the division with the Chief Financial Officer to
 1043  the credit of the Pari-mutuel Wagering Trust Fund.
 1044         (24) ADVANCE PAYMENT BY AN INTERNET POKER HUB OPERATOR.
 1045  Upon the awarding of a contract to be an Internet poker hub
 1046  operator by the division under subsection (6), an Internet poker
 1047  hub operator licensee shall pay to the division a nonrefundable
 1048  payment of $10 million. This payment shall be treated as an
 1049  advance payment to the state by each Internet poker hub operator
 1050  and shall be credited against the tax on monthly gross receipts
 1051  derived from the play of intrastate Internet poker under
 1052  paragraph (25)(a) until the original amount is recouped by each
 1053  Internet poker hub operator.
 1054         (25) TAX RATE; OTHER PAYMENTS; PENALTIES.—
 1055         (a) Each Internet poker hub operator shall pay a tax to the
 1056  state of 10 percent of the operator’s monthly gross receipts
 1057  derived from the play of intrastate Internet poker. However, an
 1058  Internet poker hub operator shall pay no taxes under this
 1059  paragraph until the full amount of the advance payment made by
 1060  that poker hub operator under subsection (24) has been credited
 1061  against the tax. Credit of the advance payment toward the tax
 1062  shall be made upon receipt by the division of the monthly report
 1063  required under paragraph (b).
 1064         (b) The gross receipts tax imposed by this section shall be
 1065  paid to the division. Each Internet poker hub operator shall
 1066  remit the gross receipts tax and licensee fees to the division
 1067  to be deposited with the Chief Financial Officer, to the credit
 1068  of the Pari-mutuel Wagering Trust Fund. Such payments shall be
 1069  remitted to the division by electronic funds transfer on the 5th
 1070  day of each calendar month for taxes and fees imposed for the
 1071  preceding month’s intrastate Internet poker activities.
 1072  Licensees shall file a report under oath by the 5th day of each
 1073  calendar month for all taxes remitted during the preceding
 1074  calendar month. Such payments shall be accompanied by a report
 1075  under oath showing all intrastate Internet poker activities for
 1076  the preceding calendar month and such other information as may
 1077  be prescribed by the division.
 1078         (c) A licensee who fails to make tax payments as required
 1079  under this section is subject to an administrative penalty of up
 1080  to $10,000 for each day the tax payment is not remitted. All
 1081  penalties imposed and collected under this subsection shall be
 1082  deposited in the Pari-mutuel Wagering Trust Fund. If a licensee
 1083  fails to pay penalties imposed by order of the division under
 1084  this subsection, the division may suspend, revoke, or refuse to
 1085  renew the license of an Internet poker hub operator or cardroom
 1086  affiliate.
 1087         (d) All of the moneys deposited in the Pari-mutuel Wagering
 1088  Trust Fund under this section shall be utilized and distributed
 1089  in the manner specified in s. 550.135(1) and (2).
 1090         (26) DISTRIBUTION OF INCOME DERIVED FROM THE PLAY OF
 1091  INTERNET POKER.—
 1092         (a) After the tax on the monthly gross receipts derived
 1093  from the play of intrastate Internet poker is paid to the state
 1094  as specified under subsection (25), the remaining monthly gross
 1095  receipts shall be distributed by the Internet poker hub
 1096  operators as follows:
 1097         1. Seventy percent shall be distributed to eligible
 1098  licensed cardroom affiliates.
 1099         a.(I) Fifty percent shall be divided and distributed among
 1100  the cardroom affiliates based on each cardroom affiliate’s total
 1101  rake generated from the play of authorized games defined in s.
 1102  849.086(2)(a) for the previous state fiscal year divided by the
 1103  total previous year’s rake for all the cardroom affiliates, as
 1104  determined by the division.
 1105         (II) Fifty percent shall be divided and distributed to the
 1106  cardroom affiliates based on the amount wagered for the previous
 1107  month through each cardroom affiliate’s portal as determined by
 1108  the division, divided by the total amount wagered for the
 1109  previous month through all cardroom affiliates’ portals.
 1110         b. If two or more cardroom affiliates join together to
 1111  operate a portal for purposes of sub-sub-subparagraphs b.(I) and
 1112  (II), their portal wagers and previous year’s rake shall be
 1113  combined.
 1114         c. Each permitholder that receives payments under this
 1115  subparagraph shall use at least 4 percent of its monthly gross
 1116  receipts from the play of intrastate Internet poker to
 1117  supplement pari-mutuel purses or prize money, respectively,
 1118  during the permitholder’s current meet or no later than the next
 1119  ensuing pari-mutuel meet.
 1120         2. Twenty-five percent shall be retained by the Internet
 1121  poker hub operators from which they shall pay all costs for the
 1122  intrastate Internet poker hub operations.
 1123         3. Four percent shall be retained by the Internet poker hub
 1124  operators to fund statewide advertising, marketing, and
 1125  promotion of the play of intrastate Internet poker on a state
 1126  Internet poker network. The division shall perform an annual
 1127  audit to verify that the Internet poker hub operators use such
 1128  funds solely for the statewide advertising, marketing, and
 1129  promotion of the play of intrastate Internet poker on a state
 1130  Internet poker network.
 1131         4. One percent shall fund services related to the
 1132  prevention and treatment of compulsive and addictive gambling
 1133  provided by the entity that is under contract with the division
 1134  under s. 551.118(2). The division shall be responsible for the
 1135  distribution and audit of the funds under this subparagraph.
 1136         (b) The distribution of the preceding monthly gross
 1137  receipts shall be by the 20th day of each calendar month.
 1138         (c) The division shall ensure that all distributions are
 1139  made in accordance with this section and may adopt rules to
 1140  ensure the implementation and proper distribution of funds.
 1141         (d) This subsection does not prevent individual cardrooms
 1142  or a number of cardroom affiliates from joining together in a
 1143  coalition for the purpose of the marketing and promotion of the
 1144  play of intrastate Internet poker on a state Internet poker
 1145  network.
 1146         (27) SUSPENSION, REVOCATION, OR DENIAL OF LICENSE.—
 1147         (a) The division may deny a license or the renewal of a
 1148  license, or may suspend or revoke any license, when the
 1149  applicant has: violated or failed to comply with section or any
 1150  rule adopted pursuant to this section; knowingly caused, aided,
 1151  abetted, or conspired with another to cause any person to
 1152  violate this section or any rule adopted pursuant to this
 1153  section; or obtained a license or permit by fraud,
 1154  misrepresentation, or concealment; or if the holder of the
 1155  license is no longer eligible under this section.
 1156         (b) If a cardroom affiliate’s pari-mutuel permit or license
 1157  is suspended or revoked by the division pursuant to chapter 550,
 1158  or its cardroom operator’s license is suspended or revoked by
 1159  the division pursuant to s. 849.086, the division shall suspend
 1160  or revoke the cardroom affiliate’s license. If a cardroom
 1161  affiliate’s license is suspended or revoked under this section,
 1162  the division may, but is not required to, suspend or revoke the
 1163  licensee’s cardroom operator’s license.
 1164         (28) PENALTIES.— The division may revoke or suspend any
 1165  Internet poker hub operator license or cardroom affiliate
 1166  license issued under this section upon the willful violation by
 1167  the licensee of this section or any rule adopted pursuant to
 1168  this section.
 1169         (a) Notwithstanding any other provision of law, the
 1170  division may impose an administrative fine not to exceed $10,000
 1171  for each violation against any person who has violated or failed
 1172  to comply with this section or any rule adopted pursuant to this
 1173  section.
 1174         (b) Nothwithstanding any other provision of law, the
 1175  division may impose an administrative fine, not exceeding
 1176  $100,000 for each count or separate offense, upon an Internet
 1177  poker hub operator or a cardroom affiliate for willfully
 1178  violating this section or any rule adopted pursuant to this
 1179  section.
 1180         (c) All penalties imposed and collected under this section
 1181  shall be deposited into the Pari-mutuel Wagering Trust Fund.
 1182         (29) RULEMAKING.—The division may adopt rules pursuant to
 1183  ss. 120.536(1) and 120.54 to administer the provisions of this
 1184  section.
 1185         (30) LEGISLATIVE AUTHORITY; ADMINISTRATION OF SECTION.—The
 1186  Legislature finds and declares that it has exclusive authority
 1187  over the conduct of intrastate Internet poker in this state.
 1188  Only the Division of Pari-mutuel Wagering and other authorized
 1189  state agencies shall administer this section and regulate the
 1190  intrastate Internet poker industry in the state, including
 1191  operation of all Internet poker hub operators and cardroom
 1192  affiliates, play of authorized games, and the Internet poker
 1193  computer systems authorized in this section, as provided by law
 1194  and rules adopted by the division.
 1195         Section 3. This act shall take effect July 1, 2011.
 1196  
 1197  
 1198  ================= T I T L E  A M E N D M E N T ================
 1199         And the title is amended as follows:
 1200         Delete everything before the enacting clause
 1201  and insert:
 1202                        A bill to be entitled                      
 1203         An act relating to Internet poker; creating the
 1204         “Internet Poker Consumer Protection and Revenue
 1205         Generation Act”; providing for intrastate Internet
 1206         poker to be provided to the public by cardroom
 1207         operators through a state Internet poker network
 1208         operated by licensed Internet poker hub operators;
 1209         creating s. 849.087, F.S.; providing legislative
 1210         intent; providing definitions; authorizing
 1211         participation in and operation of intrastate Internet
 1212         poker; providing for the Division of Pari-mutuel
 1213         Wagering of the Department of Business and
 1214         Professional Regulation to administer the act and
 1215         regulate the operation of a state Internet poker
 1216         network, Internet poker hub operators, cardroom
 1217         affiliates, and the playing of intrastate Internet
 1218         poker; authorizing the division to adopt rules,
 1219         conduct investigations and monitor operations, review
 1220         books and accounts and records, suspend or revoke any
 1221         license or permit for a violation, take testimony,
 1222         issue summons and subpoenas, monitor and ensure the
 1223         proper collection of taxes and fees, and monitor and
 1224         ensure that the playing of Internet poker is conducted
 1225         fairly and that player information is protected by
 1226         Internet poker hub operators; requiring Internet poker
 1227         hub operators to be licensed; providing qualifications
 1228         and conditions for licensure; providing application
 1229         requirements; providing for an advance payment to be
 1230         credited toward taxes; providing initial and renewal
 1231         license fees; providing for selection of Internet
 1232         poker hub operators through competitive procurement
 1233         process; requiring payment of certain costs and refund
 1234         of amounts collected in excess of the cost; requiring
 1235         a surety bond; providing for a contract between the
 1236         state and the poker hub operator; requiring the
 1237         division to annually determine the need for additional
 1238         operators; providing for a cardroom affiliate license
 1239         to be issued to a cardroom operator to provide
 1240         intrastate Internet poker for play; providing for
 1241         applications for the affiliate license and renewal
 1242         thereof; providing conditions for licensure and
 1243         renewal of licensure as an affiliate; requiring
 1244         reporting to and approval by the division of a change
 1245         of ownership of the affiliate licensee; prohibiting
 1246         certain acts by an affiliate; providing a fee;
 1247         providing for employee and business occupational
 1248         licenses; requiring certain employees of and certain
 1249         companies doing business with a cardroom affiliate or
 1250         an Internet poker hub operator to hold an appropriate
 1251         occupational license; prohibiting such operator or
 1252         affiliate from employing or allowing to be employed
 1253         such a person or doing business with such a company if
 1254         that person or company does not hold an occupational
 1255         license; directing the division to adopt rules
 1256         regarding Internet poker hub operator, cardroom
 1257         affiliate, and occupational licenses and renewal of
 1258         such licenses; providing a fee for occupational
 1259         license and renewal thereof; providing penalties for
 1260         failure to pay the fee; exempting from licensure a
 1261         person holding a valid individual cardroom
 1262         occupational license; providing grounds for the
 1263         division to deny an application for or revoke,
 1264         suspend, or place conditions or restrictions on or
 1265         refuse to renew such occupational license; requiring
 1266         fingerprints; providing procedures for processing
 1267         fingerprints and conducting a criminal history records
 1268         check and for payment of costs; providing for
 1269         citations and civil penalties; providing requirements
 1270         to register and play intrastate Internet poker;
 1271         providing for an Internet Poker Self-Exclusion Form;
 1272         requiring the Internet poker hub operator to exclude
 1273         from play any person who has completed such form;
 1274         providing for maintenance of the form and distribution
 1275         to cardroom affiliates and the division; requiring the
 1276         Internet poker hub operator to display a link to the
 1277         website offering services related to the prevention of
 1278         compulsive and addictive gambling; limiting liability;
 1279         providing requirements for approval of games to be
 1280         offered to players; providing requirements for all
 1281         offered games and game results and games not
 1282         completed; providing requirements to minimize fraud
 1283         and cheating; prohibiting action for damages against
 1284         the Internet poker hub operator to prevent fraud or
 1285         cheating under certain circumstances; providing
 1286         requirements for player eligibility and registration
 1287         and player accounts; authorizing the Internet poker
 1288         hub operator to suspend or revoke player accounts;
 1289         providing requirements for poker hub operations;
 1290         requiring the Internet poker hub operator to establish
 1291         a book of accounts, regularly audit financial records,
 1292         and make the records available to the division;
 1293         providing technical system requirements; requiring the
 1294         Internet poker hub operator to define, document, and
 1295         implement certain methodologies relating to its
 1296         systems; requiring the Internet poker hub operator to
 1297         maintain such documentation for a certain period of
 1298         time; providing for player participation fees;
 1299         prohibiting certain relationships and acts by
 1300         employees of the division and occupational license
 1301         holders and certain relatives; authorizing conduct of
 1302         proposed and authorized games; prohibiting a person
 1303         who has not attained a certain age from holding an
 1304         Internet poker occupational license or engaging in any
 1305         game conducted; prohibiting offering Internet poker to
 1306         persons located in the state except in compliance with
 1307         law; providing that an entity that has accepted any
 1308         wager on any online gambling activity from a Florida
 1309         resident since a certain date is not eligible to apply
 1310         for licensure and participate in intrastate Internet
 1311         poker in Florida for a specified period of time;
 1312         prohibiting false statements; prohibiting manipulation
 1313         of Internet poker play and operations; providing civil
 1314         and criminal penalties; providing for disposition of
 1315         fines collected; providing for license fees to be paid
 1316         by the Internet poker hub operator and cardroom
 1317         affiliates; providing for disposition and accounting
 1318         of fees collected; providing for an advance payment by
 1319         the Internet poker hub operator to be credited toward
 1320         taxes; providing for the tax rate and procedures for
 1321         payment; requiring payments to be accompanied by a
 1322         report showing all intrastate Internet poker
 1323         activities for the preceding calendar month and
 1324         containing such other information as prescribed by the
 1325         division; providing penalties for failure to pay taxes
 1326         and penalties; providing for use of certain deposits;
 1327         providing for distribution of moneys received from
 1328         Internet poker hub operations; providing grounds for
 1329         the division to deny a license or the renewal thereof
 1330         or suspend or revoke a license; providing penalties;
 1331         authorizing the division to adopt rules; providing for
 1332         administration of the act and regulation of the
 1333         intrastate Internet poker industry; providing an
 1334         effective date.