House Bill 0725c1

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    Florida House of Representatives - 2000              CS/HB 725

        By the Committee on Regulated Services and Representatives
    Fasano, Gay, Merchant, Bitner, Sembler, Andrews and Levine





  1                      A bill to be entitled

  2         An act relating to pari-mutuel wagering;

  3         amending s. 550.0951, F.S.; providing that the

  4         daily license fee tax credit provided by said

  5         section and the $360,000 or $500,000 tax

  6         exemption provided by s. 550.09514(1), F.S.,

  7         may be applied to any tax and daily license

  8         fees imposed under ch. 550, F.S.; removing

  9         restrictions on the transfer of the daily

10         license fee tax credit by greyhound

11         permitholders; authorizing transfer of the

12         $360,000 or $500,000 tax exemption by a

13         greyhound permitholder to a greyhound

14         permitholder that acts as host track to such

15         permitholder for intertrack wagering; providing

16         for repayment; providing for rules; reducing

17         the taxes on handle for greyhound dogracing,

18         for intertrack wagering when the host track is

19         a dog track, and for intertrack wagers accepted

20         by certain dog tracks; providing exceptions;

21         removing the additional tax on the surcharge on

22         winning tickets; specifying the rate of the tax

23         on handle for greyhound simulcast races

24         received from outside the United States;

25         amending s. 550.09514, F.S.; revising

26         application and administration of the $360,000

27         or $500,000 tax exemption provided by said

28         section; providing for payment of additional

29         purses by greyhound permitholders in an amount

30         equal to a percentage of the tax reduction

31         resulting from the reduction of the taxes on

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  1         handle; providing requirements with respect

  2         thereto; providing for audits; creating s.

  3         550.09516, F.S.; providing a minimum amount of

  4         tax relief to which greyhound permitholders are

  5         entitled as a result of the reduction in the

  6         taxes on handle; providing that unused amounts

  7         may be carried forward to subsequent years;

  8         creating s. 550.1647, F.S.; providing for

  9         retention of unclaimed pari-mutuel tickets and

10         breaks by greyhound permitholders; amending s.

11         550.1645, F.S., to conform; providing an

12         effective date.

13

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

15

16         Section 1.  Subsections (1) and (3) and paragraph (b)

17  of subsection (6) of section 550.0951, Florida Statutes, are

18  amended to read:

19         550.0951  Payment of daily license fee and taxes.--

20         (1)(a)  DAILY LICENSE FEE.--Each person engaged in the

21  business of conducting race meetings or jai alai games under

22  this chapter, hereinafter referred to as the "permitholder,"

23  "licensee," or "permittee," shall pay to the division, for the

24  use of the division, a daily license fee on each live or

25  simulcast pari-mutuel event of $100 for each horserace and $80

26  for each dograce and $40 for each jai alai game conducted at a

27  racetrack or fronton licensed under this chapter.  Effective

28  October 1, 1996, In addition to the tax exemption specified in

29  s. 550.09514(1) of $360,000 or $500,000 per greyhound

30  permitholder per state fiscal year, each greyhound

31  permitholder shall receive in the current state fiscal year a

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  1  tax credit equal to the number of live greyhound races

  2  conducted in the previous state fiscal year times the daily

  3  license fee specified for each dograce in this subsection

  4  applicable for the previous state fiscal year.  This tax

  5  credit and the exemption in s. 550.09514(1) shall be

  6  applicable to any the tax and the daily license fees imposed

  7  by this chapter on live handle under subsection (3) except

  8  during any charity or scholarship performances conducted

  9  pursuant to s. 550.0351. Effective October 1, 1996, Each

10  permitholder shall pay daily license fees not to exceed $500

11  per day on any simulcast races or games on which such

12  permitholder accepts wagers regardless of the number of

13  out-of-state events taken or the number of out-of-state

14  locations from which such events are taken. This license fee

15  shall be deposited with the Treasurer to the credit of the

16  Pari-mutuel Wagering Trust Fund.

17         (b)  Each permitholder that authorized a maximum tax

18  savings of $500,000 per state fiscal year pursuant to s.

19  550.09514(1) or the greyhound permitholder that had the lowest

20  live handle during the preceding state fiscal year, which

21  cannot utilize the full amount of the exemption of $360,000 or

22  $500,000 provided in s. 550.09514(1) or the daily license fee

23  credit provided in this section, may, after notifying the

24  division in writing, elect once per state fiscal year on a

25  form provided by the division to transfer such exemption or

26  credit or any portion thereof to any greyhound permitholder

27  which acts as a host track to such permitholder for the

28  purpose of intertrack wagering. Once an election to transfer

29  such exemption or credit is filed with the division it shall

30  not be rescinded. The division shall disapprove the credit

31  transfer when the amount of the exemption or credit or portion

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  1  thereof is unavailable to the transferring permitholder or

  2  when the permitholder, who is entitled to transfer the

  3  exemption or credit or who is entitled to receive the

  4  exemption or credit, owes taxes to the state pursuant to a

  5  deficiency letter or administrative complaint issued by the

  6  division. Upon approval of the transfer by the division, the

  7  transferred tax exemption or credit shall be effective for the

  8  first performance of the next biweekly pay period as specified

  9  in subsection (5). The exemption or daily license fee credit

10  transferred to such host track may be applied by such host

11  track against any its taxes and daily license fees imposed by

12  this chapter on live racing as provided in this subsection.

13  The greyhound permitholder host track to which such exemption

14  or daily license fee credit is transferred shall reimburse

15  such permitholder the exact monetary value of such transferred

16  exemption or credit as actually applied against the taxes and

17  daily license fees of the host track. The division shall

18  ensure that all transfers of exemption or credit are made in

19  accordance with this subsection and shall have the authority

20  to adopt rules to ensure the implementation of this section.

21         (3)  TAX ON HANDLE.--Each permitholder shall pay a tax

22  on contributions to pari-mutuel pools, the aggregate of which

23  is hereinafter referred to as "handle," on races or games

24  conducted by the permitholder. The tax is imposed daily and is

25  based on the total contributions to all pari-mutuel pools

26  conducted during the daily performance.  If a permitholder

27  conducts more than one performance daily, the tax is imposed

28  on each performance separately.

29         (a)  The tax on handle for thoroughbred horse racing,

30  harness horse racing, and quarter horse racing is 3.3 percent

31  of the handle.

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  1         (b)1.  The tax on handle for dogracing is 3.6 7.6

  2  percent of the handle, except that for live charity

  3  performances held pursuant to s. 550.0351, and for intertrack

  4  wagering on such charity performances at a guest greyhound

  5  track within the market area of the host, the tax remains 7.6

  6  percent of the handle. and

  7         2.  The tax on handle for jai alai is 7.1 percent of

  8  the handle.

  9         (c)1.  The tax on handle for intertrack wagering is 3.3

10  percent of the handle if the host track is a horse track, 3.6

11  7.6 percent if the host track is a dog track, and 7.1 percent

12  if the host track is a jai alai fronton.  The tax on handle

13  for intertrack wagering on rebroadcasts of simulcast

14  horseraces is 2.4 percent of the handle.  The tax shall be

15  deposited into the General Revenue Fund.

16         2.  Effective October 1, 1996, The tax on handle for

17  intertrack wagers accepted by any dog track located in an area

18  of the state in which there are only three permitholders, all

19  of which are greyhound permitholders, located in three

20  contiguous counties, from any greyhound permitholder also

21  located within such area or any dog track or jai alai fronton

22  located as specified in s. 550.615(6) or (8), on races or

23  games received from the same class of permitholder located

24  within the same market area is 2 6 percent if the host

25  facility is a greyhound permitholder and, if the host facility

26  is a jai alai permitholder, the rate shall be 6.1 percent

27  except that it shall be 2.3 percent on handle at such time as

28  the total tax on intertrack handle paid to the division by the

29  permitholder during the current state fiscal year exceeds the

30  total tax on intertrack handle paid to the division by the

31  permitholder during the 1992-1993 state fiscal year.

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  1         3.  Any guest track that imposes a surcharge on each

  2  winning ticket cashed pursuant to s. 550.6335 shall pay an

  3  additional tax equal to 5 percent of the surcharge so imposed.

  4  Any taxes so imposed shall be deposited into the General

  5  Revenue Fund.

  6         (d)  The tax on handle for greyhound simulcast races

  7  received from a location outside the United States is 2

  8  percent of the handle.

  9         (6)  PENALTIES.--

10         (b)  In addition to the civil penalty prescribed in

11  paragraph (a), any willful or wanton failure by any

12  permitholder to make payments of the daily license fee,

13  admission tax, tax on handle, or breaks tax, or surtax

14  constitutes sufficient grounds for the division to suspend or

15  revoke the license of the permitholder, to cancel the permit

16  of the permitholder, or to deny issuance of any further

17  license or permit to the permitholder.

18         Section 2.  Section 550.09514, Florida Statutes, is

19  amended to read:

20         550.09514  Greyhound dogracing taxes; purse

21  requirements.--

22         (1)  Notwithstanding the provisions of s.

23  550.0951(3)(b), Wagering on greyhound racing is subject to a

24  tax on handle for live greyhound racing as specified in s.

25  550.0951(3) at the rate of 7.6 percent of handle. However,

26  each permitholder shall pay no the tax on live or market area

27  greyhound intertrack wagering handle in excess of $100,000 per

28  performance until such time as this subsection has resulted in

29  a tax savings per state fiscal year of $360,000. Thereafter,

30  each permitholder shall pay the tax as specified in s.

31  550.0951(3) provided in this subsection on all handle for the

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  1  remainder of the permitholder's current race meet, and the tax

  2  must be calculated and commence beginning the day after the

  3  biweekly period in which the permitholder reaches the maximum

  4  tax savings per state fiscal year provided in this section.

  5  For the three permitholders which conducted a full schedule of

  6  live racing in 1995, and are closest to another state which

  7  authorizes greyhound pari-mutuel wagering, the maximum tax

  8  savings per state fiscal year shall be $500,000.  The

  9  provisions of this subsection relating to tax exemptions shall

10  not apply to any charity or scholarship performances conducted

11  pursuant to s. 550.0351.

12         (2)(a)  The division shall determine for each greyhound

13  permitholder the annual purse percentage rate of live handle

14  for the state fiscal year 1993-1994 by dividing total purses

15  paid on live handle by the permitholder, exclusive of payments

16  made from outside sources, during the 1993-1994 state fiscal

17  year by the permitholder's live handle for the 1993-1994 state

18  fiscal year. Each permitholder shall pay as purses for live

19  races conducted during its current race meet a percentage of

20  its live handle not less than the percentage determined under

21  this paragraph, exclusive of payments made by outside sources,

22  for its 1993-1994 state fiscal year.

23         (b)1.  Except as otherwise provided herein, in addition

24  to the minimum purse percentage required by paragraph (a),

25  each permitholder shall pay as purses, for fiscal year

26  1996-1997, an amount equal to 75 percent of the permitholder's

27  tax credit pursuant to s. 550.0951(1).

28         2.  Except as otherwise set forth herein, in addition

29  to the minimum purse percentage required by paragraph (a),

30  beginning July 1, 1997, each permitholder shall pay as purses

31  an annual amount equal to 75 percent of the daily license fees

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  1  paid by each permitholder for the 1994-1995 fiscal year. This

  2  purse supplement shall be disbursed weekly during the

  3  permitholder's race meet in an amount determined by dividing

  4  the annual purse supplement by the number of performances

  5  approved for the permitholder pursuant to its annual license

  6  and multiplying that amount by the number of performances

  7  conducted each week. For the greyhound permitholders in the

  8  county where there are two greyhound permitholders located as

  9  specified in s. 550.615(6), such permitholders shall pay in

10  the aggregate an amount equal to 75 percent of the daily

11  license fees paid by such permitholders for the 1994-1995

12  fiscal year. These permitholders shall be jointly and

13  severally liable for such purse payments.

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15  The additional purses provided by this paragraph must be used

16  exclusively for purses other than stakes.  The division shall

17  conduct audits necessary to ensure compliance with this

18  section.

19         (c)1.  Each greyhound permitholder when conducting at

20  least three live performances during any week shall pay purses

21  in that week on wagers it accepts as a guest track on

22  intertrack and simulcast greyhound races at the same rate as

23  it pays on live races. Each greyhound permitholder when

24  conducting at least three live performances during any week

25  shall pay purses in that week, at the same rate as it pays on

26  live races, on wagers accepted on greyhound races at a guest

27  track which is not conducting live racing and is located

28  within the same market area as the greyhound permitholder

29  conducting at least three live performances during any week.

30         2.  Each host greyhound permitholder shall pay purses

31  on its simulcast and intertrack broadcasts of greyhound races

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  1  to guest facilities that are located outside its market area

  2  in an amount equal to one quarter of an amount determined by

  3  subtracting the transmission costs of sending the simulcast or

  4  intertrack broadcasts from an amount determined by adding the

  5  fees received for greyhound simulcast races plus 3 percent of

  6  the greyhound intertrack handle at guest facilities that are

  7  located outside the market area of the host and that paid

  8  contractual fees to the host for such broadcasts of greyhound

  9  races.

10         (d)  The division shall require sufficient

11  documentation from each greyhound permitholder regarding

12  purses paid on live racing to assure that the annual purse

13  percentage rates paid by each permitholder on the live races

14  are not reduced below those paid during the 1993-1994 state

15  fiscal year. The division shall require sufficient

16  documentation from each greyhound permitholder to assure that

17  the purses paid by each permitholder on the greyhound

18  intertrack and simulcast broadcasts are in compliance with the

19  requirements of paragraph (c).

20         (e)  In addition to the purse requirements of

21  paragraphs (a)-(c), each greyhound permitholder shall pay as

22  purses an amount equal to one-third of the amount of the tax

23  reduction on live and simulcast handle applicable to such

24  permitholder as a result of the reductions in tax rates

25  provided by this act through the amendments to s. 550.0951(3).

26  With respect to intertrack wagering when the host and guest

27  tracks are greyhound permitholders not within the same market

28  area, an amount equal to the tax reduction applicable to the

29  guest track handle as a result of the reduction in tax rate

30  provided by this act through the amendment to s. 550.0951(3)

31  shall be distributed to the guest track, one-third of which

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  1  amount shall be paid as purses at the guest track. However, if

  2  the guest track is a greyhound permitholder within the market

  3  area of the host or if the guest track is not a greyhound

  4  permitholder, an amount equal to such tax reduction applicable

  5  to the guest track handle shall be retained by the host track,

  6  one-third of which amount shall be paid as purses at the host

  7  track. These purse funds shall be disbursed in the week

  8  received if the permitholder conducts at least one live

  9  performance during that week. If the permitholder does not

10  conduct at least one live performance during the week in which

11  the purse funds are received, the purse funds shall be

12  disbursed weekly during the permitholder's next race meet in

13  an amount determined by dividing the purse amount by the

14  number of performances approved for the permitholder pursuant

15  to its annual license, and multiplying that amount by the

16  number of performances conducted each week. The division shall

17  conduct audits necessary to ensure compliance with this

18  paragraph.

19         (f)(e)  Each greyhound permitholder shall, during the

20  permitholder's race meet, supply kennel operators and the

21  Division of Pari-Mutuel Wagering with a weekly report showing

22  purses paid on live greyhound races and all greyhound

23  intertrack and simulcast broadcasts, including both as a guest

24  and a host together with the handle or commission calculations

25  on which such purses were paid and the transmission costs of

26  sending the simulcast or intertrack broadcasts, so that the

27  kennel operators may determine statutory and contractual

28  compliance.

29         (g)(f)  Each greyhound permitholder shall make direct

30  payment of purses to the greyhound owners who have filed with

31  such permitholder appropriate federal taxpayer identification

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  1  information based on the percentage amount agreed upon between

  2  the kennel operator and the greyhound owner.

  3         (h)(g)  At the request of a majority of kennel

  4  operators under contract with a greyhound permitholder, the

  5  permitholder shall make deductions from purses paid to each

  6  kennel operator electing such deduction and shall make a

  7  direct payment of such deductions to the local association of

  8  greyhound kennel operators formed by a majority of kennel

  9  operators under contract with the permitholder. The amount of

10  the deduction shall be at least 1 percent of purses, as

11  determined by the local association of greyhound kennel

12  operators. No deductions may be taken pursuant to this

13  paragraph without a kennel operator's specific approval before

14  or after the effective date of this act.

15         (3)  For the purpose of this section, the term "live

16  handle" means the handle from wagers placed at the

17  permitholder's establishment on the live greyhound races

18  conducted at the permitholder's establishment.

19         Section 3.  Section 550.09516, Florida Statutes, is

20  created to read:

21         550.09516  Greyhound permitholders; minimum tax

22  relief.--Each greyhound permitholder shall be entitled to a

23  minimum amount of tax relief each year as a result of the

24  reductions in tax rates provided by this act through the

25  amendments to s. 550.0951(3). The minimum amount of tax relief

26  for each greyhound permitholder shall be equal to the amount

27  of tax reduction that would have been applicable to that

28  permitholder if said amendments had been in effect for the

29  1998-1999 state fiscal year. If in any year a permitholder is

30  not able to use the full minimum amount of tax relief, an

31

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  1  amount equal to the portion not used may be carried forward

  2  and used in subsequent years.

  3         Section 4.  Section 550.1645, Florida Statutes, is

  4  amended to read:

  5         550.1645  Escheat to state of abandoned interest in or

  6  contribution to pari-mutuel pools.--

  7         (1)  It is the public policy of the state, while

  8  protecting the interest of the owners, to possess all

  9  unclaimed and abandoned interest in or contribution to certain

10  any pari-mutuel pools pool conducted in this state under this

11  chapter, for the benefit of all the people of the state; and

12  this law shall be liberally construed to accomplish such

13  purpose.

14         (2)  Except as provided in s. 550.1647, all money or

15  other property represented by any unclaimed, uncashed, or

16  abandoned pari-mutuel ticket which has remained in the custody

17  of or under the control of any licensee authorized to conduct

18  pari-mutuel pools in this state for a period of 1 year after

19  the date the pari-mutuel ticket was issued, if the rightful

20  owner or owners thereof have made no claim or demand for such

21  money or other property within the aforesaid period of time,

22  is hereby declared to have escheated to or to escheat to, and

23  to have become the property of, the state.

24         (3)  All money or other property that has escheated to

25  and become the property of the state as provided herein, and

26  which is held by such licensee authorized to conduct

27  pari-mutuel pools in this state, shall be paid by such

28  licensee to the Treasurer annually within 60 days after the

29  close of the race meeting of the licensee.  Such moneys so

30  paid by the licensee to the Treasurer shall be deposited in

31  the State School Fund to be used for the support and

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  1  maintenance of public free schools as required by s. 6, Art.

  2  IX of the State Constitution.

  3         Section 5.  Section 550.1647, Florida Statutes, is

  4  created to read:

  5         550.1647  Greyhound permitholders; unclaimed tickets;

  6  breaks.--

  7         (1)  All money or other property represented by any

  8  unclaimed, uncashed, or abandoned pari-mutuel ticket which has

  9  remained in the custody of or under the control of any

10  permitholder authorized to conduct greyhound racing

11  pari-mutuel pools in this state for a period of 1 year after

12  the date the pari-mutuel ticket was issued, if the rightful

13  owner or owners thereof have made no claim or demand for such

14  money or other property within that period of time, shall,

15  with respect to live races, be retained by the permitholder

16  conducting the race, and, with respect to simulcast greyhound

17  races, be retained by the permitholder who receives the

18  simulcast.

19         (2)  With respect to live greyhound races, the breaks

20  shall be retained by the permitholder conducting the race,

21  and, with respect to simulcast greyhound races, the breaks

22  shall be retained by the permitholder who receives the

23  simulcast.

24         Section 6.  This act shall take effect July 1, 2000.

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