House Bill 1453c1

CODING: Words stricken are deletions; words underlined are additions.







    Florida House of Representatives - 1999             CS/HB 1453

        By the Committee on Regulated Services and Representatives
    Bitner, C. Green, C. Smith, Wilson, Sanderson, Bainter,
    Heyman, Garcia, Barreiro, Prieguez, Fasano, Ogles, Villalobos,
    Levine, Spratt, Sobel, Greenstein, A. Greene, Jacobs, Arnall,
    Jones, Valdes, Gay, Ritchie, Eggelletion and Kelly


  1                      A bill to be entitled

  2         An act relating to video lotteries; amending s.

  3         24.101, F.S.; redesignating chapter 24 of the

  4         Florida Statutes as the "Florida Public

  5         Education Lottery Chapter"; amending ss.

  6         24.102, 24.108, 24.111, 24.118, and 24.120,

  7         F.S., to conform; making technical corrections

  8         within the chapter; amending s. 24.103, F.S.,

  9         relating to definitions; defining the terms

10         "video lottery game," "video lottery terminal

11         vendor," "net terminal income," and "video

12         lottery retailer"; amending s. 24.105, F.S.;

13         providing duties of the Department of the

14         Lottery relating to establishment and operation

15         of video lottery games; providing specific

16         rulemaking authority; amending s. 24.1055,

17         F.S.; correcting a reference; prohibiting

18         participation of minors in video lottery games;

19         requiring warning signs; providing criminal

20         penalties; creating s. 24.1121, F.S.; providing

21         requirements for video lottery games and

22         retailers; providing suspension powers to the

23         Department of the Lottery; providing for fines;

24         providing for enforcement of suspension orders

25         or fines in circuit court; providing for

26         allocation of net terminal income; providing

27         for distribution of proceeds; providing funds

28         to the Department of Children and Family

29         Services for a program on compulsive gambling;

30         providing for use of certain funds for purses,

31         awards, and benefits; requiring certain written

                                  1

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1         agreements; providing for transfer of funds

  2         into the Public Education Capital Outlay and

  3         Debt Service Trust Fund and into the Department

  4         of Elderly Affairs' Grants and Donations Trust

  5         Fund; prohibiting manipulation or attempted

  6         manipulation of lottery games or terminals;

  7         providing criminal penalties; providing for

  8         payment of prizes; prohibiting isolation of

  9         video lottery terminals in pari-mutuel

10         facilities; creating s. 24.1122, F.S.;

11         providing for licensure of video lottery

12         terminal vendors; creating s. 24.1123, F.S.;

13         prohibiting certain zoning changes by local

14         governments; creating s. 24.1124, F.S.,

15         relating to video lottery terminals; requiring

16         that such terminals be approved by the

17         department; providing technical specifications;

18         creating s. 24.1125, F.S.; providing for

19         training and certification of video lottery

20         terminal service employees; providing

21         rulemaking authority; amending s. 24.117, F.S.;

22         prohibiting knowingly permitting use of video

23         lottery terminals by minors; providing criminal

24         penalties; amending s. 24.122, F.S.;

25         prohibiting state and local taxation of the

26         installation, rental, or use of video lottery

27         terminals; amending s. 212.02, F.S.; clarifying

28         that video lottery terminals are not

29         coin-operated amusement machines for the

30         purpose of taxation; creating s. 550.26315,

31         F.S., relating to the administration of the

                                  2

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1         Video Lottery Purse Trust Fund; providing for

  2         distribution of proceeds; requiring certain

  3         proceeds to be used as additional purses,

  4         awards, or compensation; providing for transfer

  5         of certain proceeds to the Video Lottery

  6         Thoroughbred Trust Fund; providing rulemaking

  7         authority; creating s. 550.26325, F.S.,

  8         relating to the distribution of funds from the

  9         Video Lottery Thoroughbred Trust Fund;

10         requiring certain uses of distributed funds;

11         amending s. 550.2625, F.S.; requiring that the

12         Division of Pari-Mutuel Wagering of the

13         Department of Business and Professional

14         Regulation adopt rules regarding the

15         distribution of certain awards and funds,

16         including video lottery proceeds, received for

17         distribution to thoroughbred owners and

18         breeders by pari-mutuel permitholders or by

19         horsemen's or breeders' associations; providing

20         an exemption; providing administrative fines

21         for underpaying purses or awards; requiring

22         periodic audited accountings by permitholders

23         and by horsemen's and breeders' associations;

24         permitting agreement to increase the cap on

25         horseracing purses; creating s. 550.401, F.S.;

26         prohibiting the cancellation of certain

27         contracts by greyhound racing tracks; amending

28         s. 550.615, F.S.; providing that pari-mutuel

29         facilities are not required to broadcast their

30         intertrack signals to other facilities located

31         within 25 miles; requiring approval of certain

                                  3

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1         intertrack contracts; requiring written consent

  2         of certain permitholders relating to intertrack

  3         wagering; amending s. 550.6305, F.S.; providing

  4         that pari-mutuel facilities are not required to

  5         broadcast their intertrack signals to other

  6         facilities located within 25 miles; repealing

  7         additional requirements and authority provided

  8         in relation to intertrack wagering on nighttime

  9         thoroughbred races; amending s. 550.6308, F.S.;

10         authorizing an intertrack wagering licensee to

11         conduct intertrack wagering on additional types

12         of races and on additional days if operating as

13         a video lottery retailer; amending s. 565.02,

14         F.S.; providing that pari-mutuel facilities may

15         be licensed to sell alcoholic beverages when

16         conducting video lottery games; directing the

17         Alcohol, Drug Abuse, and Mental Health Program

18         Office within the Department of Children and

19         Family Services to establish a program relating

20         to compulsive gambling, which includes public

21         education, training, prevention, and treatment;

22         creating s. 24.1126, F.S.; requiring video

23         lottery retailers to provide notice of a

24         toll-free problem gambling hotline; providing a

25         contingent effective date.

26

27         WHEREAS, the need for additional classroom construction

28  both now and in the future will require an additional source

29  of revenue to meet that need, and

30         WHEREAS, the Florida Lottery was authorized by the

31  citizens of the State of Florida in the Florida Constitution

                                  4

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1  and was enacted by the Legislature of the State of Florida, in

  2  part, to provide for the enhancement of educational

  3  opportunities in this state, and

  4         WHEREAS, the authorization of video lottery games as an

  5  expansion of the state lottery would provide additional

  6  funding which could, and should, help to address the unmet

  7  need for construction, renovation, and maintenance of

  8  educational facilities in this state, and

  9         WHEREAS, the citizens of this state have overwhelmingly

10  rejected the establishment of casinos in this state, and

11         WHEREAS, the pari-mutuel industry of Florida has

12  provided employment, entertainment, and financial resources to

13  the State of Florida for over 75 years, and has been a vital

14  part of Florida's tourism industry, and

15         WHEREAS, the pari-mutuel industry permitholders are

16  strictly licensed and regulated by the State of Florida, and

17  have established a lengthy record of complying with the laws

18  of this state, and

19         WHEREAS, the amount which may be wagered at a licensed

20  facility has been unlimited, and

21         WHEREAS, there are a limited number of pari-mutuel

22  permits in Florida, and

23         WHEREAS, the Legislature has determined that permitting

24  video lottery terminals in licensed pari-mutuel facilities

25  will provide needed revenue for the construction of

26  educational facilities, enhance the economic vitality of the

27  pari-mutuel industry and the economic vitality of the state as

28  a whole, and ensure the protection of the public interests,

29  NOW, THEREFORE,

30

31  Be It Enacted by the Legislature of the State of Florida:

                                  5

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1         Section 1.  Section 24.101, Florida Statutes, is

  2  amended to read:

  3         24.101  Short title.--This chapter act may be cited as

  4  the "Florida Public Education Lottery Chapter Act."

  5         Section 2.  Section 24.102, Florida Statutes, is

  6  amended to read:

  7         24.102  Purpose and intent.--

  8         (1)  The purpose of this chapter act is to implement s.

  9  15, Art. X of the State Constitution in a manner that enables

10  the people of the state to benefit from significant additional

11  moneys for education and also enables the people of the state

12  to play the best lottery games available.

13         (2)  The intent of the Legislature is:

14         (a)  That the net proceeds of lottery games conducted

15  pursuant to this chapter act be used to support improvements

16  in public education and that such proceeds not be used as a

17  substitute for existing resources for public education.

18         (b)  That the lottery games be operated by a department

19  of state government that functions as much as possible in the

20  manner of an entrepreneurial business enterprise.  The

21  Legislature recognizes that the operation of a lottery is a

22  unique activity for state government and that structures and

23  procedures appropriate to the performance of other

24  governmental functions are not necessarily appropriate to the

25  operation of a state lottery.

26         (c)  That the lottery games be operated by a

27  self-supporting, revenue-producing department.

28         (d)  That the department be accountable to the

29  Legislature and the people of the state through a system of

30  audits and reports and through compliance with financial

31  disclosure, open meetings, and public records laws.

                                  6

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1         Section 3.  Section 24.103, Florida Statutes, is

  2  amended to read:

  3         24.103  Definitions.--As used in this chapter act:

  4         (1)  "Department" means the Department of the Lottery.

  5         (2)  "Secretary" means the secretary of the department.

  6         (3)  "Commission" means the State Lottery Commission.

  7         (4)  "Person" means any individual, firm, association,

  8  joint adventure, partnership, estate, trust, syndicate,

  9  fiduciary, corporation, or other group or combination and

10  shall include any agency or political subdivision of the

11  state.

12         (5)  "Major procurement" means a procurement for a

13  contract for the printing of tickets for use in any lottery

14  game, consultation services for the startup of the lottery,

15  any goods or services involving the official recording for

16  lottery game play purposes of a player's selections in any

17  lottery game involving player selections, any goods or

18  services involving the receiving of a player's selection

19  directly from a player in any lottery game involving player

20  selections, any goods or services involving the drawing,

21  determination, or generation of winners in any lottery game,

22  the security report services provided for in this chapter act,

23  or any goods and services relating to marketing and promotion

24  which exceed a value of $25,000.

25         (6)  "Retailer" means a person who sells lottery

26  tickets on behalf of the department pursuant to a contract.

27         (7)  "Vendor" means a person who provides or proposes

28  to provide goods or services to the department, but does not

29  include an employee of the department, a retailer, or a state

30  agency.

31

                                  7

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1         (8)  "Video lottery game" means an electronically

  2  simulated game involving any element of chance that is played

  3  on a video lottery terminal that, upon insertion of cash,

  4  tokens, credits, or voucher, is available to play or simulate

  5  a lottery-type game, including, but not limited to, line-up

  6  games utilizing a video display and microprocessors, and in

  7  which, by means of an element of chance, the player may

  8  receive credits that can be redeemed for cash. "Video lottery

  9  game" also means an electronically simulated game involving

10  elements of chance and skill that is played on a video lottery

11  terminal that, upon insertion of cash, tokens, credits, or

12  voucher, is available to play or simulate the play of

13  traditional card games including, but not limited to, video

14  poker, utilizing a cathode ray tube or video display screen

15  and microprocessors, and in which the player may win credits

16  that can be redeemed for cash. "Video lottery game" also

17  includes a progressive game, which is any game in which a

18  jackpot grows and accumulates as it is being played on a video

19  lottery terminal, or on a network of video lottery terminals,

20  and in which the outcome is randomly determined by the play of

21  video lottery terminals linked by a central network. A video

22  lottery terminal may use spinning reels or video displays, or

23  both. No video lottery terminal shall directly dispense coins,

24  cash, or tokens.

25         (9)  "Video lottery terminal vendor" means any person

26  or entity approved by the department which provides the video

27  lottery terminals to a video lottery retailer or computer

28  functions related to video lottery terminals to the

29  department.

30

31

                                  8

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1         (10)  "Net terminal income" means currency and other

  2  consideration placed into a video lottery terminal minus

  3  credits redeemed by players.

  4         (11)  "Video lottery retailer" means any person who

  5  possesses a pari-mutuel permit on July 1, 1998, issued

  6  pursuant to chapter 550, who either has conducted a full

  7  schedule of live greyhound, horse, or harness racing between

  8  July 1, 1997, and June 30, 1998, as defined by s. 550.002(11),

  9  or has conducted at least one full schedule of live jai alai

10  games between January 1, 1990, and June 30, 1998, as defined

11  by s. 550.002(11), or is authorized to receive broadcasts of

12  horseraces pursuant to s. 550.615.

13         Section 4.  Section 24.105, Florida Statutes, 1998

14  Supplement, is amended to read:

15         24.105  Powers and duties of department.--The

16  department shall:

17         (1)  Have the authority to sue or be sued in the

18  corporate name of the department and to adopt a corporate seal

19  and symbol.

20         (2)(a)  Supervise and administer the operation of the

21  lottery in accordance with the provisions of this chapter act

22  and rules adopted pursuant thereto.

23         (b)1.  Initiate the public sale of lottery tickets with

24  an instant game starting no later than January 15, 1988.  If

25  the secretary finds that a state of emergency exists that

26  would prohibit the department from initiating such sale on or

27  before such date or that would cause the initiation of such

28  sale on or before such date to be clearly contrary to the

29  integrity of the state, the secretary shall certify such

30  finding to the Governor. If the Governor verifies such

31  finding, the department shall initiate the sale of lottery

                                  9

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1  tickets on the earliest feasible date after the abatement of

  2  such state of emergency.

  3         2.  Also begin to operate on-line games no later than

  4  May 1, 1988. If the secretary finds that a state of emergency

  5  exists that would prohibit the department from initiating such

  6  on-line games on or before such date or that would cause the

  7  initiation of on-line games on or before such date to be

  8  clearly contrary to the integrity of the state, the secretary

  9  shall certify such finding to the Governor.  If the Governor

10  verifies such finding, the department shall initiate the sale

11  of lottery tickets on the earliest feasible date after the

12  abatement of such state of emergency.

13         (3)  For purposes of any investigation or proceeding

14  conducted by the department, have the power to administer

15  oaths, require affidavits, take depositions, issue subpoenas,

16  and compel the attendance of witnesses and the production of

17  books, papers, documents, and other evidence.

18         (4)  Make available to the commission any record or

19  other information relating to the lottery that the commission

20  requests.

21         (5)  Submit monthly and annual reports to the

22  commission, the Governor, the Treasurer, the President of the

23  Senate, and the Speaker of the House of Representatives

24  disclosing the total lottery revenues, prize disbursements,

25  and other expenses of the department during the preceding

26  month.  The annual report shall additionally describe the

27  organizational structure of the department, including its

28  hierarchical structure, and shall identify the divisions and

29  bureaus created by the secretary and summarize the

30  departmental functions performed by each.

31         (6)  Adopt by rule a system of internal audits.

                                  10

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1         (7)  Maintain weekly or more frequent records of

  2  lottery transactions, including the distribution of tickets to

  3  retailers, revenues received, claims for prizes, prizes paid,

  4  and other financial transactions of the department.

  5         (8)  Make a continuing study of the lottery to

  6  ascertain any defects of the laws governing the lottery this

  7  act or rules adopted thereunder which could result in abuses

  8  in the administration of the lottery; make a continuing study

  9  of the operation and the administration of similar laws in

10  other states and of federal laws which may affect the lottery;

11  and make a continuing study of the reaction of the public to

12  existing and potential features of the lottery.

13         (9)  Conduct such market research as is necessary or

14  appropriate, which may include an analysis of the demographic

15  characteristics of the players of each lottery game and an

16  analysis of advertising, promotion, public relations,

17  incentives, and other aspects of communications.

18         (10)  Have in place the capacity to support video

19  lottery games at facilities of video lottery retailers

20  beginning no later than October 1, 1999.

21         (11)  Hear and decide promptly and in reasonable order

22  all license applications or proceedings for suspension or

23  revocation of licenses.

24         (12)  Collect and disperse such revenue due the

25  department as described in this chapter.

26         (13)  Certify net terminal income by inspecting

27  records, conducting audits, or any other reasonable means.

28         (14)  Provide a list of approved vendors and maintain a

29  current list of all contracts between video lottery terminal

30  vendors and video lottery retailers.

31

                                  11

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1         (15)  Approve an application as a video lottery

  2  retailer, pursuant to s. 24.103(11) within 30 days of the

  3  receipt of the application.

  4         (16)(10)  Adopt rules governing the establishment and

  5  operation of the state lottery, including:

  6         (a)  The type of lottery games to be conducted, except

  7  that:

  8         1.  No name of an elected official shall appear on the

  9  ticket or play slip of any lottery game or on any prize or on

10  any instrument used for the payment of prizes, unless such

11  prize is in the form of a state warrant.

12         2.  No coins or currency shall be dispensed from any

13  electronic computer terminal or device used in any lottery

14  game.

15         3.  Other than as provided in subparagraph 4., no

16  terminal or device may be used for any lottery game which may

17  be operated solely by the player without the assistance of the

18  retailer, except authorized video lottery terminals operated

19  pursuant to this chapter.

20         4.  The only player-activated machine which may be

21  utilized is a machine which dispenses instant lottery game

22  tickets following the insertion of a coin or currency by a

23  ticket purchaser.  To be authorized a machine must: be under

24  the supervision and within the direct line of sight of the

25  lottery retailer to ensure that the machine is monitored and

26  only operated by persons at least 18 years of age; be capable

27  of being electronically deactivated by the retailer to

28  prohibit use by persons less than 18 years of age through the

29  use of a lockout device that maintains the machine's

30  deactivation for a period of no less than 5 minutes; and be

31  designed to prevent its use or conversion for use in any

                                  12

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1  manner other than the dispensing of instant lottery tickets.

  2  Authorized machines may dispense change to players purchasing

  3  tickets but may not be utilized for paying the holders of

  4  winning tickets of any kind. At least one clerk must be on

  5  duty at the lottery retailer while the machine is in

  6  operation. However, at least two clerks must be on duty at any

  7  lottery location which has violated s. 24.1055.

  8         (b)  The sales price of tickets.

  9         (c)  The number and sizes of prizes.

10         (d)  The method of selecting winning tickets.  However,

11  if a lottery game involves a drawing, the drawing shall be

12  public and witnessed by an accountant employed by an

13  independent certified public accounting firm.  The equipment

14  used in the drawing shall be inspected before and after the

15  drawing.

16         (e)  The manner of payment of prizes to holders of

17  winning tickets.

18         (f)  The frequency of drawings or selections of winning

19  tickets.

20         (g)  The number and type of locations at which tickets

21  may be purchased.

22         (h)  The method to be used in selling tickets.

23         (i)  The manner and amount of compensation of

24  retailers.

25         (j)  Such other matters necessary or desirable for the

26  efficient or economical operation of the lottery or for the

27  convenience of the public.

28         (k)  The regulation of video lottery retailers as

29  pertains to video lottery products.

30         (l)  Specifications for video lottery terminals to be

31  approved and authorized as the department deems necessary to

                                  13

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1  maintain the integrity of video lottery games and terminals.

  2  Initial rules sufficient to permit the operation of video

  3  lotteries and the licensing of video lottery retailers shall

  4  be adopted no later than August 1, 1999. The department shall

  5  not provide for specifications which would have the result of

  6  reducing to fewer than four the number of video lottery

  7  terminal vendors who supply terminals which meet the

  8  specifications.

  9         (m)  The licensure and regulation of video lottery

10  terminal vendors. The department shall not approve any person

11  as a video lottery terminal vendor if such person has an

12  interest in a video lottery retailer or a business

13  relationship with a video lottery retailer other than as a

14  vendor or lessor of video lottery terminals.

15         (17)(11)  Have the authority to hold copyrights,

16  trademarks, and service marks and enforce its rights with

17  respect thereto.

18         (18)(12)  In the selection of games and method of

19  selecting winning tickets, be sensitive to the impact of the

20  lottery upon the pari-mutuel industry and, accordingly, the

21  department may use for any game the theme of horseracing,

22  dogracing, or jai alai and may allow a lottery game to be

23  based upon a horserace, dograce, or jai alai activity so long

24  as the outcome of such lottery game is determined entirely by

25  chance.

26         (19)(13)(a)  Determine by rule information relating to

27  the operation of the lottery which is confidential and exempt

28  from the provisions of s. 119.07(1) and s. 24(a), Art. I of

29  the State Constitution.  Such information includes trade

30  secrets; security measures, systems, or procedures; security

31  reports; information concerning bids or other contractual

                                  14

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1  data, the disclosure of which would impair the efforts of the

  2  department to contract for goods or services on favorable

  3  terms; employee personnel information unrelated to

  4  compensation, duties, qualifications, or responsibilities; and

  5  information obtained by the Division of Security pursuant to

  6  its investigations which is otherwise confidential.  To be

  7  deemed confidential, the information must be necessary to the

  8  security and integrity of the lottery. Confidential

  9  information may be released to other governmental entities as

10  needed in connection with the performance of their duties.

11  The receiving governmental entity shall retain the

12  confidentiality of such information as provided for in this

13  subsection.

14         (b)  Maintain the confidentiality of the street address

15  and the telephone number of a winner, in that such information

16  is confidential and exempt from the provisions of s. 119.07(1)

17  and s. 24(a), Art. I of the State Constitution, unless the

18  winner consents to the release of such information or as

19  provided for in s. 24.115(4) or s. 409.2577.

20         (c)  Any information made confidential and exempt from

21  the provisions of s. 119.07(1) under this subsection shall be

22  disclosed to a member of the commission, to the Auditor

23  General, or to the independent auditor selected under s.

24  24.123 upon such person's request therefor.  If the President

25  of the Senate or the Speaker of the House of Representatives

26  certifies that information made confidential under this

27  subsection is necessary for effecting legislative changes, the

28  requested information shall be disclosed to him or her, and he

29  or she may disclose such information to members of the

30  Legislature and legislative staff as necessary to effect such

31  purpose.

                                  15

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1         (20)(14)  Have the authority to perform any of the

  2  functions of the Department of Management Services under

  3  chapter 255, chapter 273, chapter 281, chapter 283, or chapter

  4  287, or any rules adopted under any such chapter, and may

  5  grant approvals provided for under any such chapter or rules.

  6  If the department finds, by rule, that compliance with any

  7  such chapter would impair or impede the effective or efficient

  8  operation of the lottery, the department may adopt rules

  9  providing alternative procurement procedures.  Such

10  alternative procedures shall be designed to allow the

11  department to evaluate competing proposals and select the

12  proposal that provides the greatest long-term benefit to the

13  state with respect to the quality of the products or services,

14  dependability and integrity of the vendor, dependability of

15  the vendor's products or services, security, competence,

16  timeliness, and maximization of gross revenues and net

17  proceeds over the life of the contract.

18         (21)(15)  Have the authority to acquire real property

19  and make improvements thereon.  The title to such property

20  shall be vested in the Board of Trustees of the Internal

21  Improvement Trust Fund.  The board shall give the department

22  preference in leasing state-owned lands under the board's

23  control and may not exercise any jurisdiction over lands

24  purchased or leased by the department while such lands are

25  actively used by the department. Actions of the department

26  under this subsection are exempt from the time limitations and

27  deadlines of chapter 253.

28         (22)(16)  Have the authority to charge fees to persons

29  applying for contracts as vendors or retailers, which fees are

30  reasonably calculated to cover the costs of investigations and

31  other activities related to the processing of the application.

                                  16

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1         (23)(17)  Enter into contracts for the purchase, lease,

  2  or lease-purchase of such goods and services as are necessary

  3  for the operation and promotion of the state lottery,

  4  including assistance provided by any governmental agency.

  5         (24)(18)  In accordance with the provisions of this

  6  chapter act, enter into contracts with retailers so as to

  7  provide adequate and convenient availability of tickets to the

  8  public for each game.

  9         (25)(19)  Have the authority to enter into agreements

10  with other states for the operation and promotion of a

11  multistate lottery if such agreements are in the best interest

12  of the state lottery.  The authority conferred by this

13  subsection is not effective until 1 year after the first day

14  of lottery ticket sales.

15         (26)(20)  Employ division directors and other staff as

16  may be necessary to carry out the provisions of this chapter

17  act; however:

18         (a)  No person shall be employed by the department who

19  has been convicted of, or entered a plea of guilty or nolo

20  contendere to, a felony committed in the preceding 10 years,

21  regardless of adjudication, unless the department determines

22  that:

23         1.  The person has been pardoned or his or her civil

24  rights have been restored; or

25         2.  Subsequent to such conviction or entry of plea the

26  person has engaged in the kind of law-abiding commerce and

27  good citizenship that would reflect well upon the integrity of

28  the lottery.

29         (b)  No officer or employee of the department having

30  decisionmaking authority shall participate in any decision

31  involving any vendor or retailer with whom the officer or

                                  17

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1  employee has a financial interest.  No such officer or

  2  employee may participate in any decision involving any vendor

  3  or retailer with whom the officer or employee has discussed

  4  employment opportunities without the approval of the secretary

  5  or, if such officer is the secretary or any member of the

  6  commission, without the approval of the Governor.  Any officer

  7  or employee of the department shall notify the secretary of

  8  any such discussion or, if such officer is the secretary or a

  9  member of the commission, he or she shall notify the Governor.

10  A violation of this paragraph is punishable in accordance with

11  s. 112.317.

12         (c)  No officer or employee of the department who

13  leaves the employ of the department shall represent any vendor

14  or retailer before the department regarding any specific

15  matter in which the officer or employee was involved while

16  employed by the department, for a period of 1 year following

17  cessation of employment with the department.  A violation of

18  this paragraph is punishable in accordance with s. 112.317.

19         (d)  The department shall establish and maintain a

20  personnel program for its employees, including a personnel

21  classification and pay plan which may provide any or all of

22  the benefits provided in the Senior Management Service or

23  Selected Exempt Service.  Each officer or employee of the

24  department shall be a member of the Florida Retirement System.

25  The retirement class of each officer or employee shall be the

26  same as other persons performing comparable functions for

27  other agencies.  Employees of the department shall serve at

28  the pleasure of the secretary and shall be subject to

29  suspension, dismissal, reduction in pay, demotion, transfer,

30  or other personnel action at the discretion of the secretary.

31  Such personnel actions are exempt from the provisions of

                                  18

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1  chapter 120. All employees of the department are exempt from

  2  the Career Service System provided in chapter 110 and,

  3  notwithstanding the provisions of s. 110.205(5), are not

  4  included in either the Senior Management Service or the

  5  Selected Exempt Service. However, all employees of the

  6  department are subject to all standards of conduct adopted by

  7  rule for career service and senior management employees

  8  pursuant to chapter 110.  In the event of a conflict between

  9  standards of conduct applicable to employees of the Department

10  of the Lottery the more restrictive standard shall apply.

11  Interpretations as to the more restrictive standard may be

12  provided by the Commission on Ethics upon request of an

13  advisory opinion pursuant to s. 112.322(3)(a), for purposes of

14  this subsection the opinion shall be considered final action.

15         (27)(21)  Adopt by rule a code of ethics for officers

16  and employees of the department which supplements the

17  standards of conduct for public officers and employees imposed

18  by law.

19         Section 5.  Section 24.1055, Florida Statutes, is

20  amended to read:

21         24.1055  Prohibition against sale of lottery tickets to

22  minors; posting of signs; penalties.--

23         (1)  No person who is less than 18 years of age may

24  purchase a lottery ticket by means of a machine or otherwise.

25         (2)  Any retailer that sells lottery tickets by means

26  of a player activated machine shall post a clear and

27  conspicuous sign on such machine, which states the following:

28         THE SALE OF LOTTERY TICKETS TO PERSONS UNDER

29         THE AGE OF 18 IS AGAINST FLORIDA LAW (SECTION

30         24.1055 24.105, FLORIDA STATUTES).  PROOF OF

31         AGE IS REQUIRED FOR PURCHASE.

                                  19

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1         (3)  No person who is less than 18 years of age may

  2  play a video lottery game authorized by this chapter.

  3         (4)  Any video lottery retailer that has a video

  4  lottery terminal at its facility shall post a clear and

  5  conspicuous sign on such terminal, which states the following:

  6         THE USE OF A VIDEO LOTTERY TERMINAL BY PERSONS

  7         UNDER THE AGE OF 18 IS AGAINST FLORIDA LAW

  8         (SECTION 24.1055, FLORIDA STATUTES).  PROOF OF

  9         AGE IS REQUIRED FOR USE.

10         (5)(3)  Any person, including any vendor or video

11  lottery retailer, who violates this section is guilty of a

12  misdemeanor of the second degree, punishable as provided in s.

13  775.082 or s. 775.083.

14         Section 6.  Subsections (5) and (7) of section 24.108,

15  Florida Statutes, are amended to read:

16         24.108  Division of Security; duties; security

17  report.--

18         (5)  The Department of Law Enforcement shall provide

19  assistance in obtaining criminal history information relevant

20  to investigations required for honest, secure, and exemplary

21  lottery operations, and such other assistance as may be

22  requested by the secretary and agreed to by the executive

23  director of the Department of Law Enforcement. Any other state

24  agency, including the Department of Business and Professional

25  Regulation and the Department of Revenue, shall, upon request,

26  provide the Department of the Lottery with any information

27  relevant to any investigation conducted pursuant to this

28  chapter act. The Department of the Lottery shall maintain the

29  confidentiality of any confidential information it receives

30  from any other agency. The Department of the Lottery shall

31

                                  20

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1  reimburse any agency for the actual cost of providing any

  2  assistance pursuant to this subsection.

  3         (7)(a)  After the first full year of sales of tickets

  4  to the public, or sooner if the secretary deems necessary, the

  5  department shall engage an independent firm experienced in

  6  security procedures, including, but not limited to, computer

  7  security and systems security, to conduct a comprehensive

  8  study and evaluation of all aspects of security in the

  9  operation of the department.

10         (b)  The portion of the security report containing the

11  overall evaluation of the department in terms of each aspect

12  of security shall be presented to the commission, the

13  Governor, the President of the Senate, and the Speaker of the

14  House of Representatives.  The portion of the security report

15  containing specific recommendations shall be confidential and

16  shall be presented only to the secretary, the commission, the

17  Governor, and the Auditor General; however, upon certification

18  that such information is necessary for the purpose of

19  effecting legislative changes, such information shall be

20  disclosed to the President of the Senate and the Speaker of

21  the House of Representatives, who may disclose such

22  information to members of the Legislature and legislative

23  staff as necessary to effect such purpose. However, any person

24  who receives a copy of such information or other information

25  which is confidential pursuant to this chapter act or rule of

26  the department shall maintain its confidentiality.  The

27  confidential portion of the report is exempt from the

28  provisions of s. 119.07(1) and s. 24(a), Art. I of the State

29  Constitution.

30

31

                                  21

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1         (c)  Thereafter, similar studies of security shall be

  2  conducted as the department deems appropriate but at least

  3  once every 2 years.

  4         Section 7.  Subsection (1) of section 24.111, Florida

  5  Statutes, 1998 Supplement, is amended to read:

  6         24.111  Vendors; disclosure and contract

  7  requirements.--

  8         (1)  The department may enter into contracts for the

  9  purchase, lease, or lease-purchase of such goods or services

10  as are necessary for effectuating the purposes of this chapter

11  act.  The department may not contract with any person or

12  entity for the total operation and administration of the state

13  lottery established by this chapter act but may make

14  procurements which integrate functions such as lottery game

15  design, supply of goods and services, and advertising.  In all

16  procurement decisions, the department shall take into account

17  the particularly sensitive nature of the state lottery and

18  shall consider the competence, quality of product, experience,

19  and timely performance of the vendors in order to promote and

20  ensure security, honesty, fairness, and integrity in the

21  operation and administration of the lottery and the objective

22  of raising net revenues for the benefit of the public purpose

23  described in this chapter act.

24         Section 8.  Section 24.1121, Florida Statutes, is

25  created to read:

26         24.1121  Video lottery games.--

27         (1)  Video lottery games may only be offered by a video

28  lottery retailer at its pari-mutuel facility. During any

29  calendar year in which a video lottery retailer maintains

30  video lottery terminals within the confines of its pari-mutuel

31  facility, the video lottery retailer must conduct a full

                                  22

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1  schedule of live racing or games as defined in s. 550.002(11)

  2  or be authorized to receive broadcasts of horseraces pursuant

  3  to s. 550.615.  In the case of a person who possesses a

  4  greyhound racing permit or a jai alai permit, such person

  5  shall be eligible to serve as a video lottery retailer only if

  6  that permitholder also conducted, during the prior fiscal

  7  year, no fewer than 80 percent of the number of performances

  8  and no fewer than 80 percent of the number of live races or

  9  games which the same permitholder conducted during the

10  1997-1998 state fiscal year. The department may waive the

11  requirements provided in this subsection relating to the

12  conducting of live races or games upon a showing that the

13  failure to conduct such games resulted from a natural disaster

14  or other acts beyond the control of the permitholder. If the

15  video lottery retailer fails to comply with the requirement to

16  conduct a full schedule of races or games or, if a greyhound

17  racing permitholder or jai alai permitholder, the video

18  lottery retailer failed in the previous fiscal year to conduct

19  the required number of live races or games, within 30 days

20  after written notice from the department, the department shall

21  order the video lottery retailer to suspend its video lottery

22  operation. The department may assess an administrative fine

23  not to exceed $5,000 per video lottery terminal, per day,

24  against any video lottery retailer who fails to suspend its

25  video lottery operation when ordered to suspend by the

26  department. The department may enforce its order of suspension

27  or any administrative fine assessed in furtherance of such

28  order as provided in s. 120.69. Each video lottery retailer

29  shall post a bond payable to the state in an amount determined

30  by the department that is sufficient to guarantee payment to

31  the state of revenue due in any payment period.

                                  23

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1         (2)  Each pari-mutuel permitholder shall notify the

  2  department prior to operating video lottery games at the

  3  pari-mutuel facility.

  4         (3)  To facilitate the auditing and security programs

  5  critical to the integrity of the video lottery system, the

  6  department shall have overall control of the entire system.

  7  Each video lottery terminal shall be linked, directly or

  8  indirectly, to a computer system under the control of the

  9  department.

10         (4)  The department shall determine, by rule, the

11  method by which cash receipts will be electronically validated

12  and redeemed.

13         (5)  No person under the age of 18 years may play a

14  video lottery game authorized by this chapter.

15         (6)  Video lottery games may be played at an authorized

16  video lottery retailer's pari-mutuel facility even if such

17  retailer is not conducting a pari-mutuel event.

18         (7)  Video lottery games shall pay out a minimum of 88

19  percent and no more than 94 percent of the amount of cash,

20  tokens, credits, or vouchers put into a video lottery

21  terminal.  The department may permit the payment of a lesser

22  percentage if requested by a video lottery retailer and the

23  department determines that the payment of a minimum of 88

24  percent is not financially viable at the video lottery

25  retailer's location and that the total amount of net revenue

26  payable to the Public Education Capital Outlay and Debt

27  Service Trust Fund will not be negatively impacted. Such

28  percentages shall be measured on an annual basis.

29         (8)  Income derived from video lottery operations shall

30  not be subject to the provisions of s. 24.121. The allocation

31

                                  24

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1  of net terminal income derived from video lottery games shall

  2  be as follows:

  3         (a)  Twenty-eight and one-half percent to the Video

  4  Lottery Administrative Trust Fund of the department for

  5  transfer to the Public Education Capital Outlay and Debt

  6  Service Trust Fund.

  7         (b)  Nine and one-half percent to the Video Lottery

  8  Administrative Trust Fund for transfer to the Grants and

  9  Donations Trust Fund of the Department of Elderly Affairs.

10         (c)  Two percent to the Video Lottery Administrative

11  Trust Fund of the department for transfer to the

12  Administrative Trust Fund established pursuant to s. 24.120.

13         (d)  Eight percent to the Video Lottery Administrative

14  Trust Fund of the department for transfer to the Video Lottery

15  Purse Trust Fund in the Department of Business and

16  Professional Regulation, to be distributed in accordance with

17  s. 550.26315(1).

18         (e)  To the Video Lottery Administrative Trust Fund of

19  the department for transfer to the Department of Children and

20  Family Services, 0.25 percent for the establishment and

21  administration of a treatment program for compulsive gambling.

22         (f)  If the video lottery retailer holds a valid

23  harness racing permit under chapter 550, 6 percent of its net

24  terminal income shall be distributed by the video lottery

25  retailer as purses for live performances conducted at the

26  video lottery retailer's pari-mutuel facility in accordance

27  with the provisions of chapter 550.

28         (g)  If the video lottery retailer holds a valid jai

29  alai permit under chapter 550, 6 percent of its net terminal

30  income shall be distributed by the video lottery retailer as

31  purses for live performances conducted at the video lottery

                                  25

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1  retailer's pari-mutuel facility in accordance with chapter

  2  550.

  3         (h)  If the video lottery retailer holds a valid

  4  greyhound racing permit under chapter 550, 6 percent of its

  5  net terminal income shall be distributed by the video lottery

  6  retailer as purses for live performances conducted at the

  7  video lottery retailer's pari-mutuel facility in accordance

  8  with chapter 550.

  9         (i)  To be retained by the video lottery retailer as

10  compensation:

11         1.  If a valid thoroughbred permitholder under chapter

12  550, 51.75 percent to be distributed as provided in paragraph

13  (j).

14         2.  If a valid holder of a permit other than a

15  thoroughbred permit, 45.75 percent.

16         3.  If the holder of a license issued pursuant to s.

17  550.615(9) or s. 550.6308, 51.75 percent to be distributed as

18  provided in paragraph (k).

19         (j)  If the video lottery retailer holds a valid

20  thoroughbred racing permit under chapter 550, the remaining

21  net terminal income generated at its facility:

22         1.  3.3 percent shall be distributed for use as Florida

23  thoroughbred breeders' and stallion awards pursuant to ss.

24  550.26165 and 550.2625.

25         2.  0.25 percent shall be distributed to the Jockeys'

26  Guild Health and Welfare Trust maintained by Jockeys' Guild,

27  Inc., for the purpose of providing health, disability, and

28  retirement benefits to active, disabled, and retired Florida

29  jockeys in accordance with eligibility criteria established by

30  Jockeys' Guild, Inc. Jockeys' Guild, Inc., shall annually

31

                                  26

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1  provide a certified financial statement of the expenditures

  2  made for benefits provided under this subparagraph.

  3         3.  96.45 percent shall be distributed as provided by

  4  written agreement between the video lottery retailer and the

  5  Florida Horseman's Benevolent and Protective Association.

  6  Such contract shall be filed with the department. No video

  7  lottery retailer required to enter into a contract by this

  8  subparagraph shall be authorized to conduct video lottery

  9  games unless such contract is in effect and is filed with the

10  department.

11         (k)  If the video lottery retailer holds a license

12  issued pursuant to s. 550.615(9) or s. 550.6308, the remaining

13  net terminal income generated at its facility:

14         1.  3.3 percent shall be distributed for use as Florida

15  thoroughbred breeders' and stallion awards pursuant to ss.

16  550.26165 and 550.2625.

17         2.  96.7 percent shall be distributed as provided by

18  written agreement between the video lottery retailer and the

19  Florida Thoroughbred Breeders' Association.  Such contract

20  shall be filed with the department. No video lottery retailer

21  required to enter into a contract by this subparagraph shall

22  be authorized to conduct video lottery games unless such

23  contract is in effect and is filed with the department.

24         (9)  The allocation provided in subsection (8) shall be

25  made weekly.  Amounts allocated pursuant to paragraphs

26  (8)(a)-(e) shall be remitted to the department by electronic

27  transfer within 24 hours after the allocation is determined.

28  If live meets were conducted at the pari-mutuel facility of

29  the video lottery retailer during the weekly period for which

30  the allocation is made, the portion of the allocation to be

31  distributed pursuant to paragraphs (8)(f), (g), and (h) shall

                                  27

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1  be paid as purses for those live meets.  If no live meets were

  2  conducted at the pari-mutuel facility during the weekly period

  3  for which the allocation is made, the distribution of purse

  4  money shall be made during the next ensuing meet following the

  5  weekly period in which the net terminal income is earned. The

  6  accumulated amount to be distributed as purses during the next

  7  ensuing meet shall be distributed weekly during the

  8  permitholder's next race meeting in an amount determined by

  9  dividing the amount to be distributed by the number of

10  performances approved for the permitholder pursuant to its

11  annual license and multiplying that amount by the number of

12  performances conducted each week. No less than one-half of the

13  interest income earned on funds required to be distributed

14  under paragraphs (8)(f), (g), and (h) prior to their

15  distribution as purses shall be distributed by the video

16  lottery retailer as purses for live performances conducted at

17  the video lottery retailer's pari-mutuel facility in

18  accordance with chapter 550.

19         (10)  Any person who, with intent to manipulate the

20  outcome, payoff, or operation of a video lottery terminal,

21  manipulates or attempts to manipulate the outcome, payoff, or

22  operation of a video lottery terminal by physical or

23  electronic tampering or other means commits a felony of the

24  third degree, punishable as provided in s. 775.082, s.

25  775.083, or s. 775.084.

26         (11)  Notwithstanding s. 24.115, each video lottery

27  retailer shall have the responsibility for payment of video

28  lottery prizes.

29         (12)  In any area or room in a facility in which a

30  video lottery terminal is placed, the video lottery retailer

31  must also place video monitors displaying the live races or

                                  28

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1  games of that facility, if such are being conducted, or, if no

  2  live races or games are being conducted, displaying some or

  3  all of the available simulcast races or games, giving

  4  preference to performances conducted by Florida pari-mutuel

  5  permitholders.  In each such area or room, the video lottery

  6  retailer shall also provide a means by which patrons may wager

  7  on pari-mutuel activity.

  8         Section 9.  Section 24.1122, Florida Statutes, is

  9  created to read:

10         24.1122  Licensure of video lottery terminal

11  vendors.--Video lottery terminal vendors shall be licensed by

12  the Department of the Lottery, and, by August 1, 1999, the

13  department shall adopt rules governing such licensure. The

14  department shall not license any person as a video lottery

15  terminal vendor if such person has an interest in a video

16  lottery retailer or a business relationship with a video

17  lottery retailer other than as a vendor or lessor of video

18  lottery terminals.

19         Section 10.  Section 24.1123, Florida Statutes, is

20  created to read:

21         24.1123  Local zoning of pari-mutuel facilities.--The

22  installation, operation, or use of a video lottery terminal on

23  any property on which pari-mutuel operations were or would

24  have been lawful under any county or municipal zoning

25  ordinance as of July 1, 1997, shall not be deemed to change

26  the character of the use of such property and shall not be

27  prohibited on such property by any local zoning ordinance or

28  amendments thereto.

29         Section 11.  Section 24.1124, Florida Statutes, is

30  created to read:

31         24.1124  Video lottery terminals.--

                                  29

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1         (1)  Video lottery terminals shall not be offered for

  2  use or play in this state unless approved by the department.

  3         (2)  Video lottery terminals approved for use in this

  4  state shall:

  5         (a)  Be protected against manipulation to affect the

  6  random probabilities of winning plays.

  7         (b)  Have one or more mechanisms that accept coins,

  8  currency, tokens, or vouchers in exchange for game credits.

  9  Such mechanisms shall be designed to prevent players from

10  obtaining credits by means of physical tampering.

11         (c)  Be capable of suspending play until reset at the

12  direction of the department as a result of physical tampering.

13         (d)  Be capable of being linked to the department's

14  central computer communications system for the purpose of

15  auditing the operation, financial data, and program

16  information as required by the department.

17         Section 12.  Section 24.1125, Florida Statutes, is

18  created to read:

19         24.1125  Video lottery terminal training program.--

20         (1)  Every licensed video lottery terminal vendor shall

21  submit a training program for the service and maintenance of

22  such terminals and equipment for approval by the department.

23  The training program shall include an outline of the training

24  curriculum, a list of instructors and their qualifications, a

25  copy of the instructional materials, and the dates, times, and

26  location of training classes. No service and maintenance

27  program shall be held unless approved by the department.

28         (2)  Every video lottery terminal service employee

29  shall complete the requirements of the manufacturer's training

30  program before such employee performs service, maintenance, or

31  repair on video lottery terminals or video lottery terminal

                                  30

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1  associated equipment. Upon the successful completion by a

  2  service employee of the training program required by this

  3  section, the department shall issue a certificate authorizing

  4  such employee to service, maintain, and repair video lottery

  5  terminals and video lottery terminal associated equipment. No

  6  certificate of completion shall be issued to any video lottery

  7  terminal service employee until the department has ascertained

  8  that such employee has completed the required training

  9  program. Any person certified as a video lottery terminal

10  service employee under this section shall pass a background

11  investigation conducted under the rules of the department. The

12  department may revoke certification upon finding a video

13  lottery terminal service employee in violation of any

14  provision of this chapter or a department rule.

15         (3)  The department is authorized to adopt rules

16  regarding the training, qualifications, and certification of

17  video lottery terminal service employees, as provided in this

18  section.

19         Section 13.  Section 24.117, Florida Statutes, is

20  amended to read:

21         24.117  Unlawful sale of lottery tickets; penalty.--Any

22  person who knowingly:

23         (1)  Sells a state lottery ticket when not authorized

24  by the department or this act to engage in such sale;

25         (2)  Sells a state lottery ticket to a minor or permits

26  a minor to use a video lottery terminal; or

27         (3)  Sells a state lottery ticket at any price other

28  than that established by the department;

29

30  is guilty of a misdemeanor of the first degree, punishable as

31  provided in s. 775.082 or s. 775.083.

                                  31

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1         Section 14.  Subsection (4) of section 24.118, Florida

  2  Statutes, is amended to read:

  3         24.118  Other prohibited acts; penalties.--

  4         (4)  BREACH OF CONFIDENTIALITY.--Any person who, with

  5  intent to defraud or with intent to provide a financial or

  6  other advantage to himself, herself, or another, knowingly and

  7  willfully discloses any information relating to the lottery

  8  designated as confidential and exempt from the provisions of

  9  s. 119.07(1) pursuant to this chapter act is guilty of a

10  felony of the first degree, punishable as provided in s.

11  775.082, s. 775.083, or s. 775.084.

12         Section 15.  Subsection (1) of section 24.120, Florida

13  Statutes, is amended to read:

14         24.120  Financial matters; Administrative Trust Fund;

15  interagency cooperation.--

16         (1)  There is hereby created in the State Treasury an

17  Administrative Trust Fund to be administered in accordance

18  with chapters 215 and 216 by the department.  All money

19  received by the department which remains after payment of

20  prizes and initial compensation paid to retailers shall be

21  deposited into the Administrative Trust Fund.  All moneys in

22  the trust fund are appropriated to the department for the

23  purposes specified in this chapter act.

24         Section 16.  Section 24.122, Florida Statutes, is

25  amended to read:

26         24.122  Exemption from taxation; state preemption;

27  inapplicability of other laws.--

28         (1)  This chapter act shall not be construed to

29  authorize any lottery except the lotteries lottery operated or

30  directed by the department pursuant to this chapter act.

31

                                  32

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1         (2)  No state or local tax shall be imposed upon any

  2  prize paid or payable under this chapter act or upon the sale

  3  of any lottery ticket or the installation, rental, or use of

  4  any video lottery terminal pursuant to this chapter act.

  5         (3)  All matters relating to the operation of the state

  6  lottery are preempted to the state, and no county,

  7  municipality, or other political subdivision of the state

  8  shall enact any ordinance relating to the operation of the

  9  lottery authorized by this chapter act.  However, this

10  subsection shall not prohibit a political subdivision of the

11  state from requiring a retailer to obtain an occupational

12  license for any business unrelated to the sale of lottery

13  tickets.

14         (4)  Any state or local law providing any penalty,

15  disability, restriction, or prohibition for the possession,

16  manufacture, transportation, distribution, advertising, or

17  sale of any lottery ticket, including chapter 849, shall not

18  apply to the tickets of the state lottery operated pursuant to

19  this chapter act; nor shall any such law apply to the

20  possession of a ticket issued by any other government-operated

21  lottery.  In addition, activities of the department under this

22  chapter act are exempt from the provisions of:

23         (a)  Chapter 616, relating to public fairs and

24  expositions.

25         (b)  Chapter 946, relating to correctional work

26  programs.

27         (c)  Chapter 282, relating to communications and data

28  processing.

29         (d)  Section 110.131, relating to other personal

30  services.

31

                                  33

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1         Section 17.  Subsection (24) of section 212.02, Florida

  2  Statutes, 1998 Supplement is amended to read:

  3         212.02  Definitions.--The following terms and phrases

  4  when used in this chapter have the meanings ascribed to them

  5  in this section, except where the context clearly indicates a

  6  different meaning:

  7         (24)  "Coin-operated amusement machine" means any

  8  machine operated by coin, slug, token, coupon, or similar

  9  device for the purposes of entertainment or amusement.  The

10  term includes, but is not limited to, coin-operated pinball

11  machines, music machines, juke boxes, mechanical games, video

12  games, arcade games, billiard tables, moving picture viewers,

13  shooting galleries, and all other similar amusement devices.

14  The term does not include a video lottery terminal approved

15  pursuant to chapter 24.

16         Section 18.  Section 550.26315, Florida Statutes, is

17  created to read:

18         550.26315  Administration of the Video Lottery Purse

19  Trust Fund.--

20         (1)  Fifty-eight percent of the proceeds of the Video

21  Lottery Purse Trust Fund shall be transferred to the Video

22  Lottery Thoroughbred Trust Fund.

23         (2)  Forty-two percent of the proceeds of the Video

24  Lottery Purse Trust Fund shall be distributed to pari-mutuel

25  permitholders to be distributed as purses at their respective

26  pari-mutuel facilities as follows:

27         (a)  Eight percent shall be distributed to holders of

28  valid harness racing permits.

29         (b)  Seven percent shall be distributed to holders of

30  valid jai alai permits.

31

                                  34

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1         (c)  Twenty-seven percent shall be distributed to

  2  holders of valid greyhound racing permits.

  3

  4  Each permitholder entitled to receive distributions under a

  5  paragraph of this subsection shall receive a percentage of the

  6  amount to be distributed under that paragraph which is

  7  determined by dividing the amounts paid in purses by such

  8  permitholder during the state fiscal year 1997-1998 by the

  9  amount of purses paid by all such permitholders statewide

10  during the state fiscal year 1997-1998.

11         (3)  All proceeds distributed under this section are in

12  addition to and supplement the other funds set forth in this

13  chapter for use as purses, awards, and, in the case of jai

14  alai, player compensation.

15         (4)  Of amounts to be distributed pursuant to this

16  section and s. 24.1121(8)(h) to persons holding valid

17  greyhound racing permits, 10 percent of such sums shall be

18  distributed as additional purses on all live races at each

19  facility to Florida-bred greyhounds in a manner similar to the

20  distribution of regular purses and in accordance with rules

21  adopted by the division.

22         (5)  Of amounts to be distributed pursuant to this

23  section and s. 24.1121(8)(f) to persons holding valid harness

24  racing permits, 6.6 percent of such sums shall be distributed

25  for payment of breeders' awards, stallion awards, and stallion

26  stakes, and for additional expenditures pursuant to ss.

27  550.26165 and 550.2625. The Florida Standardbred Breeders and

28  Owners Association may, in accordance with s. 550.2625(4),

29  deduct a fee for administering the payment of awards and for

30  general promotion of the industry.

31

                                  35

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1         (6)  The department is authorized to adopt rules to

  2  provide for the equitable distribution of funds by

  3  permitholders for purses, awards, or jai alai player

  4  compensation, in accordance with the provisions of this

  5  section.

  6         Section 19.  Section 550.26325, Florida Statutes, is

  7  created to read:

  8         550.26325  Distribution of funds from Video Lottery

  9  Thoroughbred Trust Fund.--The proceeds of the Video Lottery

10  Thoroughbred Trust Fund shall be distributed as follows:

11         (1)  For use as Florida thoroughbred breeders' and

12  stallion awards pursuant to ss. 550.26165 and 550.2625: 6.6

13  percent.  The Florida Thoroughbred Breeders' Association may,

14  in accordance with s. 550.2625(3), deduct a fee for

15  administering the payment of awards and for general promotion

16  of the industry.

17         (2)  The remainder shall be divided proportionally

18  among the thoroughbred permitholders for use as purses based

19  upon a formula determined by dividing the amounts paid in

20  purses by such thoroughbred permitholder during the 1997-1998

21  state fiscal year by the amount of purses paid by all such

22  thoroughbred permitholders statewide during the 1997-1998

23  state fiscal year.

24         Section 20.  Paragraphs (d) and (e) of subsection (2)

25  and paragraph (a) of subsection (6) of section 550.2625,

26  Florida Statutes, 1998 Supplement, are amended, and paragraph

27  (f) is added to subsection (2), to read:

28         550.2625  Horseracing; minimum purse requirement,

29  Florida breeders' and owners' awards.--

30         (2)  Each permitholder conducting a horserace meet is

31  required to pay from the takeout withheld on pari-mutuel pools

                                  36

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1  a sum for purses in accordance with the type of race

  2  performed.

  3         (d)  The division shall adopt reasonable rules to

  4  ensure the timely and accurate payment of all amounts withheld

  5  by horserace permitholders regarding the distribution of

  6  purses, Florida breeders' and stallion awards, and Florida

  7  owners' awards, and all other amounts received or collected

  8  for payment to owners and breeders, including video lottery

  9  proceeds.  Each permitholder that fails to pay out during its

10  meet all moneys received or collected for payment to owners

11  and breeders during that meet shall, within 30 10 days after

12  the end of the meet during which the underpayment occurred

13  permitholder underpaid purses, deposit an amount equal to the

14  underpayment into a separate interest-bearing account to be

15  distributed to owners and breeders in accordance with division

16  rules. Any permitholder paying out during its meet less than

17  90 percent of all moneys received or collected for payment to

18  owners and breeders during that meet shall be subject to an

19  administrative fine in an amount equal to double the amount of

20  the underpayment. Within 30 days after the end of its meet,

21  each permitholder shall be required to file with the division

22  an audited accounting reflecting the receipt and payment of

23  all sums dedicated to purses, Florida breeders' and stallion

24  awards, and Florida owners' awards.

25         (e)  An amount equal to 8.5 percent of the purse

26  account generated through video lottery proceeds pursuant to

27  s. 550.26325(2), intertrack wagering and interstate

28  simulcasting will be used for Florida Owners' Awards as set

29  forth in subsection (3). This percentage may be changed by

30  written agreement between the Florida Horseman's Benevolent

31  and Protective Association and the Florida Thoroughbred

                                  37

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1  Breeders' Association, filed with the division. Any

  2  thoroughbred permitholder with an average blended takeout

  3  which does not exceed 20 percent and with that had an average

  4  daily purse distribution excluding sponsorship, entry fees,

  5  and nominations exceeding $225,000 in 1997-1998 state fiscal

  6  year is exempt from the provisions of this paragraph. This

  7  exemption shall apply for up to 73 racing days.

  8         (f)  The division shall adopt reasonable rules to

  9  ensure the timely and accurate payment of all amounts received

10  or collected by a horsemen's or breeders' association for

11  payment to owners and breeders, including video lottery

12  proceeds. Each horsemen's or breeders' association that fails

13  to pay out during the calendar year all moneys received or

14  collected for payment to owners and breeders during that year

15  shall, within 30 days after the end of the calendar year

16  during which the underpayment occurred, deposit an amount

17  equal to the underpayment into a separate interest-bearing

18  account to be distributed to owners or breeders in accordance

19  with division rules. Any horsemen's or breeders' association

20  paying out during the calendar year less than 90 percent of

21  all moneys received or collected for payment to owners and

22  breeders during that calendar year shall be subject to an

23  administrative fine in an amount equal to double the amount of

24  the underpayment. Within 60 days after the end of the calendar

25  year, each permitholder shall be required to file with the

26  division an audited accounting reflecting the receipt and

27  payment of all sums received and collected for payment to

28  owners and breeders.

29         (6)(a)  The takeout may be used for the payment of

30  awards to owners of registered Florida-bred horses placing

31  first in a claiming race, an allowance race, a maiden special

                                  38

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1  race, or a stakes race in which the announced purse, exclusive

  2  of entry and starting fees and added moneys, does not exceed

  3  $40,000 or such higher amount as may be agreed to in writing

  4  between the permitholder and the Florida Horseman's Benevolent

  5  and Protective Association, which agreement shall be filed

  6  with the division.

  7         Section 21.  Section 550.401, Florida Statutes, is

  8  created to read:

  9         550.401  Limited prohibition on termination of kennel

10  operators.--A greyhound track may not terminate a kennel

11  operator, other than for breach of contract that remains in

12  breach 15 days following the delivery in writing of notice of

13  such breach to the kennel operator, for 12 months following

14  the first period that purse payments are made pursuant to the

15  provisions of s. 550.26315. Thereafter, only those kennel

16  operators can be terminated without cause if the kennel

17  occupies one of the bottom three positions based on total

18  number of wins for two consecutive racing seasons, which may

19  include the 12-month period following the first period that

20  purse payments are made pursuant to the provisions of s.

21  550.26315.

22         Section 22.  Section 550.615, Florida Statutes, 1998

23  Supplement, is amended to read:

24         550.615  Intertrack wagering.--

25         (1)  Any horserace permitholder licensed under this

26  chapter which has conducted a full schedule of live racing

27  may, at any time, receive broadcasts of horseraces and accept

28  wagers on horseraces conducted by horserace permitholders

29  licensed under this chapter at its facility.

30         (2)  Any track or fronton licensed under this chapter

31  which in the preceding year conducted a full schedule of live

                                  39

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1  racing is qualified to, at any time, receive broadcasts of any

  2  class of pari-mutuel race or game and accept wagers on such

  3  races or games conducted by any class of permitholders

  4  licensed under this chapter.

  5         (3)(a)  If a permitholder who operates as a video

  6  lottery retailer as defined in s. 24.103 elects to broadcast

  7  its signal to any permitholder in this state, any

  8  permitholder, not located within 25 miles of the host track,

  9  that is eligible to conduct intertrack wagering under the

10  provisions of ss. 550.615-550.6345 is entitled to receive the

11  broadcast and conduct intertrack wagering under this section;

12  however, the host track may require a guest track within 25

13  miles of another permitholder to receive in any week at least

14  60 percent of the live races that the host track is making

15  available on the days that the guest track is otherwise

16  operating live races or games. A host track may require a

17  guest track not operating live races or games and within 25

18  miles of another permitholder to accept within any week at

19  least 60 percent of the live races that the host track is

20  making available. A permitholder may, pursuant to a written

21  contract, elect to broadcast its signal to any permitholder in

22  this state located within 25 miles of the host track, provided

23  that where a thoroughbred permitholder is the host track, any

24  such contract must be approved by the Florida Horseman's

25  Benevolent and Protective Association. A person may not

26  restrain or attempt to restrain any permitholder that is

27  otherwise authorized to conduct intertrack wagering from

28  receiving the signal of any other permitholder or sending its

29  signal to any permitholder.

30         (b)  If a permitholder who does not operate as a video

31  lottery retailer as defined in s. 24.103 elects to broadcast

                                  40

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1  its signal to any permitholder in this state, any permitholder

  2  that is eligible to conduct intertrack wagering under the

  3  provisions of ss. 550.615-550.6345 is entitled to receive the

  4  broadcast and conduct intertrack wagering under this section;

  5  provided, however, that the host track may require a guest

  6  track within 25 miles of another permitholder to receive in

  7  any week at least 60 percent of the live races that the host

  8  track is making available on the days that the guest track is

  9  otherwise operating live races or games. A host track may

10  require a guest track not operating live races or games and

11  within 25 miles of another permitholder to accept within any

12  week at least 60 percent of the live races that the host track

13  is making available.  A person may not restrain or attempt to

14  restrain any permitholder that is otherwise authorized to

15  conduct intertrack wagering from receiving the signal of any

16  other permitholder or sending its signal to any permitholder.

17         (4)  In no event shall any intertrack wager be accepted

18  on the same class of live or simulcast races or games of any

19  permitholder without the written consent of such operating

20  permitholders conducting the same class of live or simulcast

21  races or games if the guest track is within the market area of

22  such operating permitholder.

23         (5)  No permitholder within the market area of the host

24  track shall take an intertrack wager on the host track without

25  the consent of the host track.

26         (6)  Notwithstanding the provisions of subsection (3),

27  in any area of the state where there are three or more

28  horserace permitholders within 25 miles of each other,

29  intertrack wagering between permitholders in said area of the

30  state shall only be authorized under the following conditions:

31  Any permitholder, other than a thoroughbred permitholder, may

                                  41

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1  accept intertrack wagers on races or games conducted live by a

  2  permitholder of the same class or any harness permitholder

  3  located within such area and any harness permitholder may

  4  accept wagers on games conducted live by any jai alai

  5  permitholder located within its market area and from a jai

  6  alai permitholder located within the area specified in this

  7  subsection when no jai alai permitholder located within its

  8  market area is conducting live jai alai performances; any

  9  greyhound or jai alai permitholder may receive broadcasts of

10  and accept wagers on any permitholder of the other class

11  provided that a permitholder, other than the host track, of

12  such other class is not operating a contemporaneous live

13  performance within the market area.

14         (7)  In any county of the state where there are only

15  two permits, one for dogracing and one for jai alai, no

16  intertrack wager may be taken during the period of time when a

17  permitholder is not licensed to conduct live races or games

18  without the written consent of the other permitholder that is

19  conducting live races or games.  However, if neither

20  permitholder is conducting live races or games, either

21  permitholder may accept intertrack wagers on horseraces or on

22  the same class of races or games, or on both horseraces and

23  the same class of races or games as is authorized by its

24  permit.

25         (8)  In any two contiguous counties of the state in

26  which there are located only four active permits, one for

27  thoroughbred horse racing, two for greyhound dogracing, and

28  one for jai alai games, no intertrack wager may be accepted on

29  the same class of live races or games of any permitholder

30  without the written consent of such operating permitholders

31  conducting the same class of live races or games if the guest

                                  42

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1  track is within the market area of such operating

  2  permitholder.

  3         (9)(a)  Upon application to the division on or before

  4  January 31 of each year, any quarter horse permitholder that

  5  has conducted at least 15 days of thoroughbred horse sales at

  6  a permanent sales facility for at least 3 consecutive years,

  7  and conducted at least one day of nonwagering thoroughbred

  8  racing, with a purse structure of at least $250,000 per year

  9  for 2 consecutive years prior to such application, shall be

10  issued a license to conduct intertrack wagering for

11  thoroughbred racing for up to 21 days in connection with

12  thoroughbred sales, to conduct intertrack wagering at such

13  permanent sales facility between November 1 and May 8 of the

14  following year, to conduct intertrack wagering at such

15  permanent sales facility between May 9 and October 31 at such

16  times and on such days as any jai alai permitholder in the

17  same county is not conducting live performances, and to

18  conduct intertrack wagering under the provisions of this

19  subsection during the weekend of the Kentucky Derby, the

20  Preakness, the Belmont, and a Breeders' Cup Meet that is

21  conducted before November 1 and after May 8, subject to

22  conditions set forth in this subsection, provided that no more

23  than one such license may be issued.

24         (b)  If more than one permitholder applies, the

25  division shall determine which permitholder shall be granted

26  the license. In making its determination, the division shall

27  consider the length of time the permitholder has been

28  conducting thoroughbred horse sales in this state, the length

29  of time the applicant has had a permanent location in this

30  state, and the volume of sales of thoroughbred horses in this

31

                                  43

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1  state, giving the greater weight to the applicant that meets

  2  these criteria.

  3         (c)  The applicant must comply with the provisions of

  4  ss. 550.125 and 550.1815.

  5         (d)  Intertrack wagering under this subsection may not

  6  be conducted within 50 miles of any greyhound racetrack that

  7  conducted a full schedule of live racing prior to June 1,

  8  1990.

  9         (e)  For each year such quarter horse permitholder must

10  obtain the license set forth in paragraph (a), any provisions

11  relating to suspension or revocation of a quarter horse permit

12  for failure to conduct live quarter horse racing do not apply.

13         (f)  Intertrack wagering under this subsection may only

14  be conducted on thoroughbred horse racing, and intertrack

15  wagering under this subsection may not be conducted on evening

16  performances.

17         (10)  All costs of receiving the transmission of the

18  broadcasts shall be borne by the guest track; and all costs of

19  sending the broadcasts shall be borne by the host track.

20         (11)  Notwithstanding any other provision of this

21  section, any thoroughbred permitholder that conducts

22  performances during the period beginning May 23 and ending

23  January 2 must make available any live pari-mutuel event

24  conducted and any simulcast pari-mutuel event received by such

25  permitholder to any thoroughbred permitholder that conducts

26  performances during the period beginning March 17 and ending

27  May 22, and such guest permitholder is authorized to accept

28  wagers on such signals.  Notwithstanding s. 550.0951(3)(c),

29  the tax on wagers accepted by the guest permitholder on such

30  events shall be 2 percent, but such amount shall be retained

31  by the host track as compensation for lost revenues and

                                  44

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1  purses.  At least 50 percent of the amount retained shall be

  2  paid as purses at the host track. This subsection applies only

  3  to thoroughbred permitholders located in any area of the state

  4  where there are three or more thoroughbred permitholders

  5  within 25 miles of each other.

  6         Section 23.  Paragraph (g) of subsection (9) of section

  7  550.6305, Florida Statutes, 1998 Supplement, is amended to

  8  read:

  9         550.6305  Intertrack wagering; guest track payments;

10  accounting rules.--

11         (9)  A host track that has contracted with an

12  out-of-state horse track to broadcast live races conducted at

13  such out-of-state horse track pursuant to s. 550.3551(5) may

14  broadcast such out-of-state races to any guest track and

15  accept wagers thereon in the same manner as is provided in s.

16  550.3551.

17         (g)1.  Any thoroughbred permitholder which accepts

18  wagers on a simulcast signal must make the signal available to

19  any permitholder that is located more than 25 miles from where

20  the permitholder providing the signal is located and that is

21  eligible to conduct intertrack wagering under the provisions

22  of ss. 550.615-550.6345.

23         2.  Any thoroughbred permitholder which accepts wagers

24  on a simulcast signal received after 6 p.m. must make such

25  signal available to any permitholder that is eligible to

26  conduct intertrack wagering under the provisions of ss.

27  550.615-550.6345, including any permitholder located as

28  specified in s. 550.615(6).  Such guest permitholders are

29  authorized to accept wagers on such simulcast signal,

30  notwithstanding any other provision of this chapter to the

31  contrary.

                                  45

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1         3.  Any thoroughbred permitholder which accepts wagers

  2  on a simulcast signal received after 6 p.m. must make such

  3  signal available to any permitholder that is eligible to

  4  conduct intertrack wagering under the provisions of ss.

  5  550.615-550.6345, including any permitholder located as

  6  specified in s. 550.615(9).  Such guest permitholders are

  7  authorized to accept wagers on such simulcast signals for a

  8  number of performances not to exceed that which constitutes a

  9  full schedule of live races for a quarter horse permitholder

10  pursuant to s. 550.002(11), notwithstanding any other

11  provision of this chapter to the contrary, except that the

12  restrictions provided in s. 550.615(9)(a) apply to wagers on

13  such simulcast signals.

14

15  No thoroughbred permitholder shall be required to continue to

16  rebroadcast a simulcast signal to any in-state permitholder if

17  the average per performance gross receipts returned to the

18  host permitholder over the preceding 30-day period were less

19  than $100.  Subject to the provisions of s. 550.615(4), as a

20  condition of receiving rebroadcasts of thoroughbred simulcast

21  signals under this paragraph, a guest permitholder must accept

22  intertrack wagers on all live races conducted by all

23  then-operating thoroughbred permitholders.

24         Section 24.  Section 550.6308, Florida Statutes, 1998

25  Supplement, is amended to read:

26         550.6308  Limited intertrack wagering license.--In

27  recognition of the economic importance of the thoroughbred

28  breeding industry to this state, its positive impact on

29  tourism, and of the importance of a permanent thoroughbred

30  sales facility as a key focal point for the activities of the

31  industry, a limited license to conduct intertrack wagering is

                                  46

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1  established to ensure the continued viability and public

  2  interest in thoroughbred breeding in Florida.

  3         (1)  Upon application to the division on or before

  4  January 31 of each year, any person that is licensed to

  5  conduct public sales of thoroughbred horses pursuant to s.

  6  535.01, that has conducted at least 15 days of thoroughbred

  7  horse sales at a permanent sales facility in this state for at

  8  least 3 consecutive years, and that has conducted at least 1

  9  day of nonwagering thoroughbred racing in this state, with a

10  purse structure of at least $250,000 per year for 2

11  consecutive years before such application, shall be issued a

12  license to conduct intertrack wagering for thoroughbred racing

13  for up to 21 days in connection with thoroughbred sales, to

14  conduct intertrack wagering at such permanent sales facility

15  between November 1 and May 8, to conduct intertrack wagering

16  at such permanent sales facility between May 9 and October 31

17  at such times and on such days as any thoroughbred, jai alai,

18  or a greyhound permitholder in the same county is not

19  conducting live performances, and to conduct intertrack

20  wagering under the provisions of this subsection during the

21  weekend of the Kentucky Derby, the Preakness, the Belmont, and

22  a Breeders' Cup Meet that is conducted before November 1 and

23  after May 8, subject to conditions set forth in this section

24  but no more than one such license may be issued and no such

25  license may be issued for a facility located within 50 miles

26  of any thoroughbred permitholder's track.

27         (2)  If more than one application is submitted for such

28  license, the division shall determine which applicant shall be

29  granted the license. In making its determination, the division

30  shall grant the license to the applicant demonstrating

31  superior capabilities, as measured by the length of time the

                                  47

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1  applicant has been conducting thoroughbred sales within this

  2  state or elsewhere, the applicant's total volume of

  3  thoroughbred horse sales, within this state or elsewhere, the

  4  length of time the applicant has maintained a permanent

  5  thoroughbred sales facility in this state, and the quality of

  6  the facility.

  7         (3)  The applicant must comply with the provisions of

  8  ss. 550.125 and 550.1815.

  9         (4)  Intertrack wagering under this section may be

10  conducted only on thoroughbred horse racing.

11         (5)  Notwithstanding the limitations on use of the

12  license provided in subsections (1) and (4) and s. 550.615(9),

13  if the licensee is also operating as a video lottery retailer,

14  the licensee may conduct intertrack wagering on thoroughbred

15  horse racing and on greyhound racing and the licensee may also

16  conduct intertrack wagering between May 9 and October 31 at

17  such times and on such days as any thoroughbred, jai alai, or

18  a greyhound permitholder in the same county is conducting live

19  performances.

20         Section 25.  Subsection (5) of section 565.02, Florida

21  Statutes, is amended to read:

22         565.02  License fees; vendors; clubs; caterers; and

23  others.--

24         (5)  A caterer at a horse or dog racetrack or jai alai

25  fronton may obtain a license upon the payment of an annual

26  state license tax of $675. Such caterer's license shall permit

27  sales only within the enclosure in which such races or jai

28  alai games are conducted, and such licensee shall be permitted

29  to sell only during the period beginning 10 days before and

30  ending 10 days after racing or jai alai under the authority of

31  the Division of Pari-mutuel Wagering of the Department of

                                  48

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1  Business and Professional Regulation is conducted at such

  2  racetrack or jai alai fronton and on days on which the

  3  pari-mutuel facility is open to the public for the purpose of

  4  video lottery play authorized by the Department of the

  5  Lottery. Except as in this subsection otherwise provided,

  6  caterers licensed hereunder shall be treated as vendors

  7  licensed to sell by the drink the beverages mentioned herein

  8  and shall be subject to all the provisions hereof relating to

  9  such vendors.

10         Section 26.  Compulsive gambling program.--The Alcohol,

11  Drug Abuse, and Mental Health Program Office within the

12  Department of Children and Family Services shall establish a

13  program for public education, awareness, and training

14  regarding problem and compulsive gambling and the treatment

15  and prevention of problem and compulsive gambling. The program

16  shall include:

17         (1)  Maintenance of a compulsive gambling advocacy

18  organization's toll-free problem gambling telephone number to

19  provide crisis counseling and referral services to families

20  experiencing difficulty as a result of problem or compulsive

21  gambling.

22         (2)  The promotion of public awareness regarding the

23  recognition and prevention of problem or compulsive gambling.

24         (3)  Facilitation, through inservice training and other

25  means, of the availability of effective assistance programs

26  for problem and compulsive gamblers, of all ages, and family

27  members affected by problem and compulsive gambling.

28         (4)  Studies to identify adults and juveniles in this

29  state who are, or who are at risk of becoming, problem or

30  compulsive gamblers.

31

                                  49

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999             CS/HB 1453

    615-115A-99






  1         Section 27.  Section 24.1126, Florida Statutes, is

  2  created to read:

  3         24.1126  Notice of availability of assistance for

  4  compulsive gambling required.--

  5         (1)  The owner of each facility at which video lottery

  6  games are conducted, pursuant to the provisions of chapter 24,

  7  shall post signs with the statement "IF YOU OR SOMEONE YOU

  8  KNOW HAS A GAMBLING PROBLEM, HELP IS AVAILABLE. CALL

  9  1-800-426-7711." Such signs shall be posted within 50 feet of

10  each entrance and exit and within 50 feet of each credit

11  location within the facility.

12         (2)  Each pari-mutuel facility licensee, who operates

13  as a video lottery retailer, shall print the statement "IF YOU

14  OR SOMEONE YOU KNOW HAS A GAMBLING PROBLEM, HELP IS AVAILABLE.

15  CALL 1-800-426-7711" on all daily racing programs provided by

16  the licensee or its lessees to the general public.

17         Section 28.  This act shall take effect upon becoming a

18  law, if House Bill 1455, House Bill 1457, House Bill 1459, and

19  House Bill 1461, or similar legislation is adopted in the same

20  legislative session or an extension thereof.

21

22

23

24

25

26

27

28

29

30

31

                                  50