Bill Text: ENROLLED HB 1059

ENROLLED HB 1059

2003 Legislature

A bill to be entitled

An act relating to pari-mutuel wagering; amending s.

550.26165, F.S.; revising criteria for making breeders'

awards for racehorses; amending s. 550.2625, F.S.;

providing for payment of special racing awards; amending

s. 550.5251, F.S.; authorizing a thoroughbred racing

permitholder to operate a cardroom; amending s. 849.086,

F.S.; redefining the term "authorized game"; providing for

certain permitholders to amend the annual application to

include operation of a cardroom; providing requirements

for a harness permitholder to operate a cardroom;

clarifying requirements for the license fee; revising

certain restrictions on the hours that a cardroom may be

operated; authorizing the cardroom operator to limit the

amount wagered; providing certain restrictions with

respect to the amount of bets and the number of raises in

a round of betting; providing an effective date.

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

Section 1. Subsections (1) and (2) of section 550.26165,

Florida Statutes, are amended to read:

550.26165 Breeders' awards.--

(1) The purpose of this section is to encourage the

agricultural activity of breeding and training racehorses in

this state. Moneys dedicated in this chapter for use as

breeders' awards and stallion awards are to be used for awards

to breeders of registered Florida-bred horses winning horseraces

and for similar awards to the owners of stallions who sired

Florida-bred horses winning stakes races, if the stallions are

registered as Florida stallions standing in this state. Such

awards shall be given at a uniform rate to all winners of the

awards, shall not be greater than 20 percent of the announced

gross purse, and shall not be less than 15 percent of the

announced gross purse if funds are available. In addition, no

less than 17 percent nor more than 40 percent, as determined by

the Florida Thoroughbred Breeders' Association, of the moneys

dedicated in this chapter for use as breeders' awards and

stallion awards for thoroughbreds shall be returned pro rata to

the permitholders that generated the moneys for special racing

awards to be distributed by the permitholders to owners of

~~registered Florida-bred~~ thoroughbred horses participating

~~winning~~ in prescribed thoroughbred stakes races, nonstakes

races, or both~~and winning or placing in thoroughbred stakes~~

~~races~~, all in accordance with a written agreement establishing

the rate, procedure, and eligibility requirements for such

awards entered into~~plan established annually no later than 120~~

~~days before the first day of the permitholders' racing meet and~~

~~agreed upon~~by the permitholder, the Florida Thoroughbred

Breeders' Association, and the Florida Horsemen's Benevolent and

Protective Association, Inc., except that the plan for the

distribution by any permitholder located in the area described

in s. 550.615(9) shall be agreed upon by that permitholder, the

Florida Thoroughbred Breeders' Association, and the association

representing a majority of the thoroughbred racehorse owners and

trainers at that location. Awards for thoroughbred races are to

be paid through the Florida Thoroughbred Breeders' Association,

and awards for standardbred races are to be paid through the

Florida Standardbred Breeders and Owners Association. Among

other sources specified in this chapter, moneys for thoroughbred

breeders' awards will come from the 0.955 percent of handle for

thoroughbred races conducted, received, broadcast, or simulcast

under this chapter as provided in s. 550.2625(3). The moneys

for quarter horse and harness breeders' awards will come from

the breaks and uncashed tickets on live quarter horse and

harness racing performances and 1 percent of handle on

intertrack wagering. The funds for these breeders' awards shall

be paid to the respective breeders' associations by the

permitholders conducting the races.

(2) Each breeders' association shall develop a plan each

year that will provide for a uniform rate of payment and

procedure for breeders' and stallion awards~~payment~~. The plan

for payment of breeders' and stallion awardsmay set a cap on

winnings and may limit, exclude, or defer payments ontocertain

classes of races, such as the Florida stallion stakes races, in

order to assure that there are adequate revenues to meet the

proposed uniform rate. Priority shall be placed on imposing such

restrictions in lieu of allowing the uniform rate for breeders'

and stallion awardsto be less than 15 percent of the total

purse payment. The plan must provide for the maximum possible

payments within revenues.

Section 2. Subsection (3) of section 550.2625, Florida

Statutes, is amended to read:

550.2625 Horseracing; minimum purse requirement, Florida

breeders' and owners' awards.--

(3) Each horseracing permitholder conducting any

thoroughbred race under this chapter, including any intertrack

race taken pursuant to ss. 550.615-550.6305 or any interstate

simulcast taken pursuant to s. 550.3551(3) shall pay a sum equal

to 0.955 percent on all pari-mutuel pools conducted during any

such race for the payment of breeders',~~and~~ stallion, or special

racing awards as authorized in this chapter~~section~~. This

subsection also applies to all Breeder's Cup races conducted

outside this state taken pursuant to s. 550.3551(3). On any

race originating live in this state which is broadcast out-of-

state to any location at which wagers are accepted pursuant to

s. 550.3551(2), the host track is required to pay 3.475 percent

of the gross revenue derived from such out-of-state broadcasts

as breeders',~~and~~ stallion, or special racingawards. The

100

Florida Thoroughbred Breeders' Association is authorized to

101

receive these payments from the permitholders and make payments

102

of awards earned. The Florida Thoroughbred Breeders'

103

Association has the right to withhold up to 10 percent of the

104

permitholder's payments under this section as a fee for

105

administering the payments of awards and for general promotion

106

of the industry. The permitholder shall remit these payments to

107

the Florida Thoroughbred Breeders' Association by the 5th day of

108

each calendar month for such sums accruing during the preceding

109

calendar month and shall report such payments to the division as

110

prescribed by the division. With the exception of the 10-

111

percent fee, the moneys paid by the permitholders shall be

112

maintained in a separate, interest-bearing account, and such

113

payments together with any interest earned shall be used

114

exclusively for the payment of breeders',~~awards and~~ stallion,

115

or special racingawards in accordance with the following

116

provisions:

117

(a) The breeder of each Florida-bred thoroughbred horse

118

winning a thoroughbred horse race is entitled to an award of up

119

to, but not exceeding, 20 percent of the announced gross purse,

120

including nomination fees, eligibility fees, starting fees,

121

supplementary fees, and moneys added by the sponsor of the race.

122

(b) The owner or owners of the sire of a Florida-bred

123

thoroughbred horse that wins a stakes race is entitled to a

124

stallion award of up to, but not exceeding, 20 percent of the

125

announced gross purse, including nomination fees, eligibility

126

fees, starting fees, supplementary fees, and moneys added by the

127

sponsor of the race.

128

129

horses participating~~winning or placing~~in thoroughbred stakes

130

races, nonstakes races, or both may receive a special racingan

131

award in accordance with the agreement~~a plan~~ established

132

pursuant toins. 550.26165(1).

133

(d) In order for a breeder of a Florida-bred thoroughbred

134

horse to be eligible to receive a breeder's award, ~~or for the~~

135

~~owners of a registered Florida-bred thoroughbred horse to be~~

136

~~eligible to receive an award under paragraph (c),~~the horse must

137

have been registered as a Florida-bred horse with the Florida

138

Thoroughbred Breeders' Association, and the Jockey Club

139

certificate for the horse must show that it has been duly

140

registered as a Florida-bred horse as evidenced by the seal and

141

proper serial number of the Florida Thoroughbred Breeders'

142

Association registry. The Florida Thoroughbred Breeders'

143

Association shall be permitted to charge the registrant a

144

reasonable fee for this verification and registration.

145

(e) In order for an owner of the sire of a thoroughbred

146

horse winning a stakes race to be eligible to receive a stallion

147

award, the stallion must have been registered with the Florida

148

Thoroughbred Breeders' Association, and the breeding of the

149

registered Florida-bred horse must have occurred in this state.

150

The stallion must be standing permanently in this state during

151

the period of time between February 1 and June 15 of each year

152

or, if the stallion is dead, must have stood permanently in this

153

state for a period of not less than 1 year immediately prior to

154

its death. The removal of a stallion from this state during the

155

period of time between February 1 and June 15 of any year for

156

any reason, other than exclusively for prescribed medical

157

treatment, as approved by the Florida Thoroughbred Breeders'

158

Association, renders the owner or owners of the stallion

159

ineligible to receive a stallion award under any circumstances

160

for offspring sired prior to removal; however, if a removed

161

stallion is returned to this state, all offspring sired

162

subsequent to the return make the owner or owners of the

163

stallion eligible for the stallion award but only for those

164

offspring sired subsequent to such return to this state. The

165

Florida Thoroughbred Breeders' Association shall maintain

166

complete records showing the date the stallion arrived in this

167

state for the first time, whether or not the stallion remained

168

in the state permanently, the location of the stallion, and

169

whether the stallion is still standing in this state and

170

complete records showing awards earned, received, and

171

distributed. The association may charge the owner, owners, or

172

breeder a reasonable fee for this service.

173

(f) A permitholder conducting a thoroughbred horse race

174

under the provisions of this chapter shall, within 30 days after

175

the end of the race meet during which the race is conducted,

176

certify to the Florida Thoroughbred Breeders' Association such

177

information relating to the thoroughbred horses winning a stakes

178

or other horserace at the meet as may be required to determine

179

the eligibility for payment of breeders',~~awards and~~ stallion,

180

and special racingawards.

181

(g) The Florida Thoroughbred Breeders' Association shall

182

maintain complete records showing the starters and winners in

183

all races conducted at thoroughbred tracks in this state; shall

184

maintain complete records showing awards earned, received, and

185

distributed; and may charge the owner, owners, or breeder a

186

reasonable fee for this service.

187

(h) The Florida Thoroughbred Breeders' Association shall

188

annually establish a uniform rate and procedure for the payment

189

of breeders' and stallion awards and shall make breeders' and

190

stallion award payments in strict compliance with the

191

established uniform rate and procedure plan. The plan may set a

192

cap on winnings and may limit, exclude, or defer payments to

193

certain classes of races, such as the Florida stallion stakes

194

races, in order to assure that there are adequate revenues to

195

meet the proposed uniform rate. Such plan must include proposals

196

for the general promotion of the industry. Priority shall be

197

placed upon imposing such restrictions in lieu of allowing the

198

uniform rate to be less than 15 percent of the total purse

199

payment. The uniform rate and procedure plan must be approved

200

by the division before implementation. In the absence of an

201

approved plan and procedure, the authorized rate for breeders'

202

and stallion awards is 15 percent of the announced gross purse

203

for each race. Such purse must include nomination fees,

204

eligibility fees, starting fees, supplementary fees, and moneys

205

added by the sponsor of the race. If the funds in the account

206

for payment of breeders' and stallion awards are not sufficient

207

to meet all earned breeders' and stallion awards, those breeders

208

and stallion owners not receiving payments have first call on

209

any subsequent receipts in that or any subsequent year.

210

(i) The Florida Thoroughbred Breeders' Association shall

211

keep accurate records showing receipts and disbursements of such

212

payments and shall annually file a full and complete report to

213

the division showing such receipts and disbursements and the

214

sums withheld for administration. The division may audit the

215

records and accounts of the Florida Thoroughbred Breeders'

216

Association to determine that payments have been made to

217

eligible breeders and stallion owners in accordance with this

218

section.

219

(j) If the division finds that the Florida Thoroughbred

220

Breeders' Association has not complied with any provision of

221

this section, the division may order the association to cease

222

and desist from receiving funds and administering funds received

223

under this section. If the division enters such an order, the

224

permitholder shall make the payments authorized in this section

225

to the division for deposit into the Pari-mutuel Wagering Trust

226

Fund; and any funds in the Florida Thoroughbred Breeders'

227

Association account shall be immediately paid to the Division of

228

Pari-mutuel Wagering for deposit to the Pari-mutuel Wagering

229

Trust Fund. The division shall authorize payment from these

230

funds to any breeder or stallion owner entitled to an award that

231

has not been previously paid by the Florida Thoroughbred

232

Breeders' Association in accordance with the applicable rate.

233

Section 3. Subsection (4) of section 550.5251, Florida

234

Statutes, is amended to read:

235

550.5251 Florida thoroughbred racing; certain permits;

236

operating days.--

237

(4) A thoroughbred racing permitholder may not begin any

238

race later than 7 p.m. ~~However,~~Any thoroughbred permitholder in

239

a county in which the authority for cardrooms has been approved

240

by the board of county commissioners may ~~elect not to~~operate a

241

cardroom and,when conducting live races during its current race

242

meet, may~~and instead to~~receive and rebroadcast out-of-state

243

races after the hour of 7 p.m. on any day during which the

244

permitholder conducts live races. ~~However, such permitholder may~~

245

~~not engage in both operating a cardroom and receiving or~~

246

~~rebroadcasting out-of-state races after 7 p.m. Permitholders~~

247

~~shall be required to elect between either operating a cardroom~~

248

~~or engaging in simulcasting after 7 p.m. at the time of~~

249

~~submitting its application for its annual license pursuant to~~

250

~~this section.~~

251

Section 4. Paragraph (a) of subsection (2), subsections

252

(5), (7), and (8), and paragraphs(a) and (d) of subsection (13)

253

of section 849.086, Florida Statutes, are amended to read:

254

849.086 Cardrooms authorized.--

255

(2) DEFINITIONS.--As used in this section:

256

(a) "Authorized game~~games~~" means a game or series of

257

games of poker~~only those games authorized by s. 849.085(2)(a)~~

258

~~and~~which are played in a nonbanking manner.

259

(5) LICENSE REQUIRED; APPLICATION; FEES.--No person may

260

operate a cardroom in this state unless such person holds a

261

valid cardroom license issued pursuant to this section.

262

(a) Only those persons holding a valid cardroom license

263

issued by the division may operate a cardroom. A cardroom

264

license may only be issued to a licensed pari-mutuel

265

permitholder and an authorized cardroom may only be operated at

266

the same facility at which the permitholder is authorized under

267

its valid pari-mutuel wagering permit to conduct pari-mutuel

268

wagering activities. Cardroom licenses are not transferable.

269

(b) After the initial cardroom license is granted, the

270

application for the annual license renewal shall be made in

271

conjunction with the applicant's annual application for its

272

pari-mutuel license. If a permitholder has operated a cardroom

273

during any of the 3 previous fiscal years and fails to include a

274

renewal request for the operation of the cardroom in its annual

275

application for license renewal, the permitholder may amend its

276

annual application to include operation of the cardroom.In

277

order for a cardroom license to be renewed the applicant must

278

have requested, as part of its pari-mutuel annual license

279

application, to conduct at least 90 percent of the total number

280

of live performances conducted by such permitholder during

281

either the state fiscal year in which its initial cardroom

282

license was issued or the state fiscal year immediately prior

283

thereto. If the application is for a harness permitholder

284

cardroom, the applicant must have requested authorization to

285

conduct a minimum of 140 live performances during the state

286

fiscal year immediately prior thereto. If more than one

287

permitholder is operating at a facility, each permitholder must

288

have applied for a license to conduct a full schedule of live

289

racing.

290

291

operate a cardroom shall make application on forms prescribed by

292

the division. Applications for cardroom licenses shall contain

293

all of the information the division, by rule, may determine is

294

required to ensure eligibility.

295

(d) The annual cardroom license fee for each facility

296

shall be $1,000 for the first table and $500 for each additional

297

table to be operated at the cardroom. This license fee shall be

298

deposited by the division with the Treasurer to the credit of

299

the Pari-mutuel Wagering Trust Fund.

300

(7) CONDITIONS FOR OPERATING A CARDROOM.--

301

(a) A cardroom may ~~only~~ be operated onlyat the location

302

specified on the cardroom license issued by the division, and

303

such location may only be the location at which the pari-mutuel

304

permitholder is authorized to conduct pari-mutuel wagering

305

activities pursuant to such permitholder's valid pari-mutuel

306

permit or as otherwise authorized by law~~and current license~~.

307

(b) A cardroom may be operated at the facility only when

308

the facility is authorized to accept wagers on pari-mutuel

309

events during its authorized meet. A cardroom may operate

310

between the hours of 12 noon and 12 midnight on any day a pari-

311

mutuel event is conducted live as a part of its authorized meet.

312

However, a permitholder who holds a valid cardroom license may

313

operate a cardroom between the hours of 12 noon and 12 midnight

314

on any day that live racing of the same class of permit is

315

occurring within 35 miles of its facility if no other holder of

316

that same class of permit within 35 miles is operating a

317

cardroom at such time and if all holders of the same class of

318

permit within the 35-mile area have given their permission in

319

writing to the permitholder to operate the cardroom during the

320

designated period. Application to operate a cardroom under this

321

paragraph must be made to the division as part of the annual

322

license application.~~begin operations within 2 hours prior to~~

323

~~the post time of the first pari-mutuel event conducted live at~~

324

~~the pari-mutuel facility on which wagers are accepted and must~~

325

~~cease operations within 2 hours after the conclusion of the last~~

326

~~pari-mutuel event conducted live at the pari-mutuel facility on~~

327

~~which wagers are accepted.~~

328

329

provide a nonplaying dealer for each table on which authorized

330

card games which traditionally utilize a dealer are conducted at

331

the cardroom. Such dealers may not have any participatory

332

interest in any game other than the dealing of cards and may not

333

have an interest in the outcome of the game. The providing of

334

such dealers by a licensee shall not be construed as

335

constituting the conducting of a banking game by the cardroom

336

operator.

337

(d) Each cardroom operator shall conspicuously post upon

338

the premises of the cardroom a notice which contains a copy of

339

the cardroom license; a list of authorized games offered by the

340

cardroom; the wagering limits imposed by the house, if any; any

341

additional house rules regarding operation of the cardroom or

342

the playing of any game; and all costs to players to

343

participate, including any rake by the house. In addition, each

344

cardroom operator shall post at each table a notice of the

345

minimum and maximum bets authorized at such table and the fee

346

for participation in the game conducted.

347

(e) The cardroom facility shall be subject to inspection

348

by the division or any law enforcement agency during the

349

licensee's regular business hours. The inspection will

350

specifically encompass the permitholder internal control

351

procedures approved by the division.

352

(f) A cardroom operator may refuse entry to or refuse to

353

allow to play any person who is objectionable, undesirable, or

354

disruptive, but such refusal shall not be on the basis of race,

355

creed, color, religion, sex, national origin, marital status,

356

physical handicap, or age, except as provided in this section.

357

(8) METHOD OF WAGERS; LIMITATION.--

358

(a) No wagering may be conducted using money or other

359

negotiable currency. Games may only be played utilizing a

360

wagering system whereby all players' money is first converted by

361

the house to tokens or chips which shall be used for wagering

362

only at that specific cardroom.

363

(b) The cardroom operator may limit the amount wagered in

364

any game or series of games, but the maximum bet~~winnings of any~~

365

~~player in a single round, hand, or game~~ may not exceed $2~~$10~~in

366

value. There may not be more than three raises in any round of

367

betting.The fee charged by the cardroom for participation in

368

the game shall not be included in the calculation of the

369

limitation on the bet amount~~pot size~~provided in this

370

paragraph.

371

(13) TAXES AND OTHER PAYMENTS.--

372

(a) Each cardroom operator shall pay a tax to the state of

373

10 percent of the cardroom operation's monthly gross receipts.

374

(d) Each greyhound and jai alai permitholder that~~which~~

375

operates a cardroom facility shall use~~utilize~~at least 4

376

percent of such permitholder's cardroom monthly gross receipts

377

to supplement greyhound purses or jai alai prize money,

378

respectively, during the permitholder's next ensuing pari-mutuel

379

meet. Each thoroughbred and harness horse racing permitholder

380

that~~which~~ operates a cardroom facility shall use~~utilize~~at

381

least 50 percent of such permitholder's cardroom monthly net

382

proceeds as follows: 47 percent to supplement purses and 3

383

percent to supplement breeders' awards during the permitholder's

384

next ensuing racing meet.

385

Section 5. This act shall take effect July 1, 2003.