HOUSE AMENDMENT
Bill No. HB 1059
   
1 CHAMBER ACTION
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Senate House
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12          Representative Ritter offered the following:
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14          Amendment (with title amendment)
15          Remove everything after the enacting clause and insert:
16          Section 1. Subsections (1) and (2) of section 550.26165,
17    Florida Statutes, are amended to read:
18          550.26165 Breeders' awards.--
19          (1) The purpose of this section is to encourage the
20    agricultural activity of breeding and training racehorses in
21    this state. Moneys dedicated in this chapter for use as
22    breeders' awards and stallion awards are to be used for awards
23    to breeders of registered Florida-bred horses winning horseraces
24    and for similar awards to the owners of stallions who sired
25    Florida-bred horses winning stakes races, if the stallions are
26    registered as Florida stallions standing in this state. Such
27    awards shall be given at a uniform rate to all winners of the
28    awards, shall not be greater than 20 percent of the announced
29    gross purse, and shall not be less than 15 percent of the
30    announced gross purse if funds are available. In addition, no
31    less than 17 percent nor more than 40 percent, as determined by
32    the Florida Thoroughbred Breeders' Association, of the moneys
33    dedicated in this chapter for use as breeders' awards and
34    stallion awards for thoroughbreds shall be returned pro rata to
35    the permitholders that generated the moneys for special racing
36    awards to be distributed by the permitholders to owners of
37    registered Florida-bred thoroughbred horses participating
38    winning in prescribed thoroughbred stakes races, nonstakes
39    races, or bothand winning or placing in thoroughbred stakes
40    races, all in accordance with a written agreement establishing
41    the rate, procedure, and eligibility requirements for such
42    awards entered intoplan established annually no later than 120
43    days before the first day of the permitholders' racing meet and
44    agreed uponby the permitholder, the Florida Thoroughbred
45    Breeders' Association, and the Florida Horsemen's Benevolent and
46    Protective Association, Inc., except that the plan for the
47    distribution by any permitholder located in the area described
48    in s. 550.615(9) shall be agreed upon by that permitholder, the
49    Florida Thoroughbred Breeders' Association, and the association
50    representing a majority of the thoroughbred racehorse owners and
51    trainers at that location. Awards for thoroughbred races are to
52    be paid through the Florida Thoroughbred Breeders' Association,
53    and awards for standardbred races are to be paid through the
54    Florida Standardbred Breeders and Owners Association. Among
55    other sources specified in this chapter, moneys for thoroughbred
56    breeders' awards will come from the 0.955 percent of handle for
57    thoroughbred races conducted, received, broadcast, or simulcast
58    under this chapter as provided in s. 550.2625(3). The moneys
59    for quarter horse and harness breeders' awards will come from
60    the breaks and uncashed tickets on live quarter horse and
61    harness racing performances and 1 percent of handle on
62    intertrack wagering. The funds for these breeders' awards shall
63    be paid to the respective breeders' associations by the
64    permitholders conducting the races.
65          (2) Each breeders' association shall develop a plan each
66    year that will provide for a uniform rate of payment and
67    procedure for breeders' and stallion awardspayment. The plan
68    for payment of breeders' and stallion awardsmay set a cap on
69    winnings and may limit, exclude, or defer payments ontocertain
70    classes of races, such as the Florida stallion stakes races, in
71    order to assure that there are adequate revenues to meet the
72    proposed uniform rate. Priority shall be placed on imposing such
73    restrictions in lieu of allowing the uniform rate for breeders'
74    and stallion awardsto be less than 15 percent of the total
75    purse payment. The plan must provide for the maximum possible
76    payments within revenues.
77          Section 2. Subsection (3) of section 550.2625, Florida
78    Statutes, is amended to read:
79          550.2625 Horseracing; minimum purse requirement, Florida
80    breeders' and owners' awards.--
81          (3) Each horseracing permitholder conducting any
82    thoroughbred race under this chapter, including any intertrack
83    race taken pursuant to ss. 550.615-550.6305 or any interstate
84    simulcast taken pursuant to s. 550.3551(3) shall pay a sum equal
85    to 0.955 percent on all pari-mutuel pools conducted during any
86    such race for the payment of breeders',and stallion, or special
87    racing awards as authorized in this chaptersection. This
88    subsection also applies to all Breeder's Cup races conducted
89    outside this state taken pursuant to s. 550.3551(3). On any
90    race originating live in this state which is broadcast out-of-
91    state to any location at which wagers are accepted pursuant to
92    s. 550.3551(2), the host track is required to pay 3.475 percent
93    of the gross revenue derived from such out-of-state broadcasts
94    as breeders',and stallion, or special racingawards. The
95    Florida Thoroughbred Breeders' Association is authorized to
96    receive these payments from the permitholders and make payments
97    of awards earned. The Florida Thoroughbred Breeders'
98    Association has the right to withhold up to 10 percent of the
99    permitholder's payments under this section as a fee for
100    administering the payments of awards and for general promotion
101    of the industry. The permitholder shall remit these payments to
102    the Florida Thoroughbred Breeders' Association by the 5th day of
103    each calendar month for such sums accruing during the preceding
104    calendar month and shall report such payments to the division as
105    prescribed by the division. With the exception of the 10-
106    percent fee, the moneys paid by the permitholders shall be
107    maintained in a separate, interest-bearing account, and such
108    payments together with any interest earned shall be used
109    exclusively for the payment of breeders',awards and stallion,
110    or special racingawards in accordance with the following
111    provisions:
112          (a) The breeder of each Florida-bred thoroughbred horse
113    winning a thoroughbred horse race is entitled to an award of up
114    to, but not exceeding, 20 percent of the announced gross purse,
115    including nomination fees, eligibility fees, starting fees,
116    supplementary fees, and moneys added by the sponsor of the race.
117          (b) The owner or owners of the sire of a Florida-bred
118    thoroughbred horse that wins a stakes race is entitled to a
119    stallion award of up to, but not exceeding, 20 percent of the
120    announced gross purse, including nomination fees, eligibility
121    fees, starting fees, supplementary fees, and moneys added by the
122    sponsor of the race.
123          (c) The owners of registered Florida-bredthoroughbred
124    horses participatingwinning or placingin thoroughbred stakes
125    races, nonstakes races, or both may receive a special racingan
126    award in accordance with the agreementa plan established
127    pursuant toins. 550.26165(1).
128          (d) In order for a breeder of a Florida-bred thoroughbred
129    horse to be eligible to receive a breeder's award, or for the
130    owners of a registered Florida-bred thoroughbred horse to be
131    eligible to receive an award under paragraph (c),the horse must
132    have been registered as a Florida-bred horse with the Florida
133    Thoroughbred Breeders' Association, and the Jockey Club
134    certificate for the horse must show that it has been duly
135    registered as a Florida-bred horse as evidenced by the seal and
136    proper serial number of the Florida Thoroughbred Breeders'
137    Association registry. The Florida Thoroughbred Breeders'
138    Association shall be permitted to charge the registrant a
139    reasonable fee for this verification and registration.
140          (e) In order for an owner of the sire of a thoroughbred
141    horse winning a stakes race to be eligible to receive a stallion
142    award, the stallion must have been registered with the Florida
143    Thoroughbred Breeders' Association, and the breeding of the
144    registered Florida-bred horse must have occurred in this state.
145    The stallion must be standing permanently in this state during
146    the period of time between February 1 and June 15 of each year
147    or, if the stallion is dead, must have stood permanently in this
148    state for a period of not less than 1 year immediately prior to
149    its death. The removal of a stallion from this state during the
150    period of time between February 1 and June 15 of any year for
151    any reason, other than exclusively for prescribed medical
152    treatment, as approved by the Florida Thoroughbred Breeders'
153    Association, renders the owner or owners of the stallion
154    ineligible to receive a stallion award under any circumstances
155    for offspring sired prior to removal; however, if a removed
156    stallion is returned to this state, all offspring sired
157    subsequent to the return make the owner or owners of the
158    stallion eligible for the stallion award but only for those
159    offspring sired subsequent to such return to this state. The
160    Florida Thoroughbred Breeders' Association shall maintain
161    complete records showing the date the stallion arrived in this
162    state for the first time, whether or not the stallion remained
163    in the state permanently, the location of the stallion, and
164    whether the stallion is still standing in this state and
165    complete records showing awards earned, received, and
166    distributed. The association may charge the owner, owners, or
167    breeder a reasonable fee for this service.
168          (f) A permitholder conducting a thoroughbred horse race
169    under the provisions of this chapter shall, within 30 days after
170    the end of the race meet during which the race is conducted,
171    certify to the Florida Thoroughbred Breeders' Association such
172    information relating to the thoroughbred horses winning a stakes
173    or other horserace at the meet as may be required to determine
174    the eligibility for payment of breeders',awards and stallion,
175    and special racingawards.
176          (g) The Florida Thoroughbred Breeders' Association shall
177    maintain complete records showing the starters and winners in
178    all races conducted at thoroughbred tracks in this state; shall
179    maintain complete records showing awards earned, received, and
180    distributed; and may charge the owner, owners, or breeder a
181    reasonable fee for this service.
182          (h) The Florida Thoroughbred Breeders' Association shall
183    annually establish a uniform rate and procedure for the payment
184    of breeders' and stallion awards and shall make breeders' and
185    stallion award payments in strict compliance with the
186    established uniform rate and procedure plan. The plan may set a
187    cap on winnings and may limit, exclude, or defer payments to
188    certain classes of races, such as the Florida stallion stakes
189    races, in order to assure that there are adequate revenues to
190    meet the proposed uniform rate. Such plan must include proposals
191    for the general promotion of the industry. Priority shall be
192    placed upon imposing such restrictions in lieu of allowing the
193    uniform rate to be less than 15 percent of the total purse
194    payment. The uniform rate and procedure plan must be approved
195    by the division before implementation. In the absence of an
196    approved plan and procedure, the authorized rate for breeders'
197    and stallion awards is 15 percent of the announced gross purse
198    for each race. Such purse must include nomination fees,
199    eligibility fees, starting fees, supplementary fees, and moneys
200    added by the sponsor of the race. If the funds in the account
201    for payment of breeders' and stallion awards are not sufficient
202    to meet all earned breeders' and stallion awards, those breeders
203    and stallion owners not receiving payments have first call on
204    any subsequent receipts in that or any subsequent year.
205          (i) The Florida Thoroughbred Breeders' Association shall
206    keep accurate records showing receipts and disbursements of such
207    payments and shall annually file a full and complete report to
208    the division showing such receipts and disbursements and the
209    sums withheld for administration. The division may audit the
210    records and accounts of the Florida Thoroughbred Breeders'
211    Association to determine that payments have been made to
212    eligible breeders and stallion owners in accordance with this
213    section.
214          (j) If the division finds that the Florida Thoroughbred
215    Breeders' Association has not complied with any provision of
216    this section, the division may order the association to cease
217    and desist from receiving funds and administering funds received
218    under this section. If the division enters such an order, the
219    permitholder shall make the payments authorized in this section
220    to the division for deposit into the Pari-mutuel Wagering Trust
221    Fund; and any funds in the Florida Thoroughbred Breeders'
222    Association account shall be immediately paid to the Division of
223    Pari-mutuel Wagering for deposit to the Pari-mutuel Wagering
224    Trust Fund. The division shall authorize payment from these
225    funds to any breeder or stallion owner entitled to an award that
226    has not been previously paid by the Florida Thoroughbred
227    Breeders' Association in accordance with the applicable rate.
228          Section 3. Subsection (4) of section 550.5251, Florida
229    Statutes, is amended to read:
230          550.5251 Florida thoroughbred racing; certain permits;
231    operating days.--
232          (4) A thoroughbred racing permitholder may not begin any
233    race later than 7 p.m. However,Any thoroughbred permitholder in
234    a county in which the authority for cardrooms has been approved
235    by the board of county commissioners may elect not tooperate a
236    cardroom and,when conducting live races during its current race
237    meet, mayand instead toreceive and rebroadcast out-of-state
238    races after the hour of 7 p.m. on any day during which the
239    permitholder conducts live races. However, such permitholder may
240    not engage in both operating a cardroom and receiving or
241    rebroadcasting out-of-state races after 7 p.m. Permitholders
242    shall be required to elect between either operating a cardroom
243    or engaging in simulcasting after 7 p.m. at the time of
244    submitting its application for its annual license pursuant to
245    this section.
246          Section 4. Paragraph (a) of subsection (2), subsections
247    (5), (7), and (8), and paragraphs(a) and (d) of subsection (13)
248    of section 849.086, Florida Statutes, are amended to read:
249          849.086 Cardrooms authorized.--
250          (2) DEFINITIONS.--As used in this section:
251          (a) "Authorized gamegames" means a game or series of
252    games of pokeronly those games authorized by s. 849.085(2)(a)
253    andwhich are played in a nonbanking manner.
254          (5) LICENSE REQUIRED; APPLICATION; FEES.--No person may
255    operate a cardroom in this state unless such person holds a
256    valid cardroom license issued pursuant to this section.
257          (a) Only those persons holding a valid cardroom license
258    issued by the division may operate a cardroom. A cardroom
259    license may only be issued to a licensed pari-mutuel
260    permitholder and an authorized cardroom may only be operated at
261    the same facility at which the permitholder is authorized under
262    its valid pari-mutuel wagering permit to conduct pari-mutuel
263    wagering activities. Cardroom licenses are not transferable.
264          (b) After the initial cardroom license is granted, the
265    application for the annual license renewal shall be made in
266    conjunction with the applicant's annual application for its
267    pari-mutuel license. If a permitholder has operated a cardroom
268    during any of the 3 previous fiscal years and fails to include a
269    renewal request for the operation of the cardroom in its annual
270    application for license renewal, the permitholder may amend its
271    annual application to include operation of the cardroom.In
272    order for a cardroom license to be renewed the applicant must
273    have requested, as part of its pari-mutuel annual license
274    application, to conduct at least 90 percent of the total number
275    of live performances conducted by such permitholder during
276    either the state fiscal year in which its initial cardroom
277    license was issued or the state fiscal year immediately prior
278    thereto. If the application is for a harness permitholder
279    cardroom, the applicant must have requested authorization to
280    conduct a minimum of 140 live performances during the state
281    fiscal year immediately prior thereto. If more than one
282    permitholder is operating at a facility, each permitholder must
283    have applied for a license to conduct a full schedule of live
284    racing.
285          (c) Persons seeking a license or a renewal thereof to
286    operate a cardroom shall make application on forms prescribed by
287    the division. Applications for cardroom licenses shall contain
288    all of the information the division, by rule, may determine is
289    required to ensure eligibility.
290          (d) The annual cardroom license fee for each facility
291    shall be $1,000 for the first table and $500 for each additional
292    table to be operated at the cardroom. This license fee shall be
293    deposited by the division with the Treasurer to the credit of
294    the Pari-mutuel Wagering Trust Fund.
295          (7) CONDITIONS FOR OPERATING A CARDROOM.--
296          (a) A cardroom may only be operated onlyat the location
297    specified on the cardroom license issued by the division, and
298    such location may only be the location at which the pari-mutuel
299    permitholder is authorized to conduct pari-mutuel wagering
300    activities pursuant to such permitholder's valid pari-mutuel
301    permit or as otherwise authorized by lawand current license.
302          (b) A cardroom may be operated at the facility only when
303    the facility is authorized to accept wagers on pari-mutuel
304    events during its authorized meet. A cardroom may begin
305    operations within 2 hours prior to the post time of the first
306    pari-mutuel event conducted live at the pari-mutuel facility on
307    which wagers are accepted and must cease operations within 2
308    hours after the conclusion of the last pari-mutuel event
309    conducted live at the pari-mutuel facility on which wagers are
310    accepted.
311          (c) A cardroom operator must at all times employ and
312    provide a nonplaying dealer for each table on which authorized
313    card games which traditionally utilize a dealer are conducted at
314    the cardroom. Such dealers may not have any participatory
315    interest in any game other than the dealing of cards and may not
316    have an interest in the outcome of the game. The providing of
317    such dealers by a licensee shall not be construed as
318    constituting the conducting of a banking game by the cardroom
319    operator.
320          (d) Each cardroom operator shall conspicuously post upon
321    the premises of the cardroom a notice which contains a copy of
322    the cardroom license; a list of authorized games offered by the
323    cardroom; the wagering limits imposed by the house, if any; any
324    additional house rules regarding operation of the cardroom or
325    the playing of any game; and all costs to players to
326    participate, including any rake by the house. In addition, each
327    cardroom operator shall post at each table a notice of the
328    minimum and maximum bets authorized at such table and the fee
329    for participation in the game conducted.
330          (e) The cardroom facility shall be subject to inspection
331    by the division or any law enforcement agency during the
332    licensee's regular business hours. The inspection will
333    specifically encompass the permitholder internal control
334    procedures approved by the division.
335          (f) A cardroom operator may refuse entry to or refuse to
336    allow to play any person who is objectionable, undesirable, or
337    disruptive, but such refusal shall not be on the basis of race,
338    creed, color, religion, sex, national origin, marital status,
339    physical handicap, or age, except as provided in this section.
340          (8) METHOD OF WAGERS; LIMITATION.--
341          (a) No wagering may be conducted using money or other
342    negotiable currency. Games may only be played utilizing a
343    wagering system whereby all players' money is first converted by
344    the house to tokens or chips which shall be used for wagering
345    only at that specific cardroom.
346          (b) The cardroom operator may limit the amount wagered in
347    any game or series of games, but the maximum betwinnings of any
348    player in a single round, hand, or game may not exceed $2$10in
349    value. There may not be more than three raises in any round of
350    betting.The fee charged by the cardroom for participation in
351    the game shall not be included in the calculation of the
352    limitation on the bet amountpot sizeprovided in this
353    paragraph.
354          (13) TAXES AND OTHER PAYMENTS.--
355          (a) Each cardroom operator shall pay a tax to the state of
356    10 percent of the cardroom operation's monthly gross receipts.
357          (d) Each greyhound permitholder that operates a cardroom
358    facility shall use at least 10 percent of such permitholder's
359    cardroom monthly gross receipts to supplement greyhound purses
360    and eachand jai alai permitholder thatwhichoperates a
361    cardroom facility shall useutilizeat least 4 percent of such
362    permitholder's cardroom monthly gross receipts to supplement
363    greyhound purses or jai alai prize money, respectively,during
364    the permitholder's next ensuing pari-mutuel meet. Each
365    thoroughbred and harness horse racing permitholder thatwhich
366    operates a cardroom facility shall useutilizeat least 50
367    percent of such permitholder's cardroom monthly net proceeds as
368    follows: 47 percent to supplement purses and 3 percent to
369    supplement breeders' awards during the permitholder's next
370    ensuing racing meet.
371          Section 5. This act shall take effect July 1, 2003.
372         
373    ================= T I T L E A M E N D M E N T =================
374          Remove the entire title and insert:
375 A bill to be entitled
376          An act relating to pari-mutuel wagering; amending s.
377    550.26165, F.S.; revising criteria for making breeders'
378    awards for racehorses; amending s. 550.2625, F.S.;
379    providing for payment of special racing awards; amending
380    s. 550.5251, F.S.; authorizing a thoroughbred racing
381    permitholder to operate a cardroom; amending s. 849.086,
382    F.S.; redefining the term "authorized game"; providing for
383    certain permitholders to amend the annual application to
384    include operation of a cardroom; providing requirements
385    for a harness permitholder to operate a cardroom;
386    clarifying requirements for the license fee; revising
387    certain restrictions on the hours that a cardroom may be
388    operated; authorizing the cardroom operator to limit the
389    amount wagered; providing certain restrictions with
390    respect to the amount of bets and the number of raises in
391    a round of betting; providing an effective date.