Senate Bill sb1490
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Florida Senate - 2003 SB 1490
By Senator Diaz de la Portilla
10-658B-03
1 A bill to be entitled
2 An act relating to pari-mutuel wagering;
3 amending s. 550.26165, F.S.; revising criteria
4 for making breeders' awards for racehorses;
5 amending s. 550.2625, F.S.; providing for
6 payment of special racing awards; amending s.
7 550.5251, F.S.; authorizing a thoroughbred
8 racing permitholder to operate a cardroom;
9 amending s. 849.086, F.S.; redefining the term
10 "authorized game"; providing for certain
11 permitholders to amend the annual application
12 to include operation of a cardroom; providing
13 requirements for a harness permitholder to
14 operate a cardroom; clarifying requirements for
15 the license fee; revising certain restrictions
16 on the hours that a cardroom may be operated;
17 authorizing the cardroom operator to limit the
18 amount wagered; providing certain restrictions
19 with respect to the amount of bets and the
20 number of raises in a round of betting;
21 providing an effective date.
22
23 Be It Enacted by the Legislature of the State of Florida:
24
25 Section 1. Subsections (1) and (2) of section
26 550.26165, Florida Statutes, are amended to read:
27 550.26165 Breeders' awards.--
28 (1) The purpose of this section is to encourage the
29 agricultural activity of breeding and training racehorses in
30 this state. Moneys dedicated in this chapter for use as
31 breeders' awards and stallion awards are to be used for awards
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1 to breeders of registered Florida-bred horses winning
2 horseraces and for similar awards to the owners of stallions
3 who sired Florida-bred horses winning stakes races, if the
4 stallions are registered as Florida stallions standing in this
5 state. Such awards shall be given at a uniform rate to all
6 winners of the awards, shall not be greater than 20 percent of
7 the announced gross purse, and shall not be less than 15
8 percent of the announced gross purse if funds are available.
9 In addition, no less than 17 percent nor more than 40 percent,
10 as determined by the Florida Thoroughbred Breeders'
11 Association, of the moneys dedicated in this chapter for use
12 as breeders' awards and stallion awards for thoroughbreds
13 shall be returned pro rata to the permitholders that generated
14 the moneys for special racing awards to be distributed by the
15 permitholders to owners of registered Florida-bred
16 thoroughbred horses participating winning in prescribed
17 thoroughbred stakes races, nonstakes races, or both and
18 winning or placing in thoroughbred stakes races, all in
19 accordance with a written agreement establishing the rate,
20 procedure, and eligibility requirements for such awards
21 entered into plan established annually no later than 120 days
22 before the first day of the permitholders' racing meet and
23 agreed upon by the permitholder, the Florida Thoroughbred
24 Breeders' Association, and the Florida Horsemen's Benevolent
25 and Protective Association, Inc., except that the plan for the
26 distribution by any permitholder located in the area described
27 in s. 550.615(9) shall be agreed upon by that permitholder,
28 the Florida Thoroughbred Breeders' Association, and the
29 association representing a majority of the thoroughbred
30 racehorse owners and trainers at that location. Awards for
31 thoroughbred races are to be paid through the Florida
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Florida Senate - 2003 SB 1490
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1 Thoroughbred Breeders' Association, and awards for
2 standardbred races are to be paid through the Florida
3 Standardbred Breeders and Owners Association. Among other
4 sources specified in this chapter, moneys for thoroughbred
5 breeders' awards will come from the 0.955 percent of handle
6 for thoroughbred races conducted, received, broadcast, or
7 simulcast under this chapter as provided in s. 550.2625(3).
8 The moneys for quarter horse and harness breeders' awards will
9 come from the breaks and uncashed tickets on live quarter
10 horse and harness racing performances and 1 percent of handle
11 on intertrack wagering. The funds for these breeders' awards
12 shall be paid to the respective breeders' associations by the
13 permitholders conducting the races.
14 (2) Each breeders' association shall develop a plan
15 each year that will provide for a uniform rate of payment and
16 procedure for breeders' and stallion awards payment. The plan
17 for payment of breeders' and stallion awards may set a cap on
18 winnings and may limit, exclude, or defer payments on to
19 certain classes of races, such as the Florida stallion stakes
20 races, in order to assure that there are adequate revenues to
21 meet the proposed uniform rate. Priority shall be placed on
22 imposing such restrictions in lieu of allowing the uniform
23 rate for breeders' and stallion awards to be less than 15
24 percent of the total purse payment. The plan must provide for
25 the maximum possible payments within revenues.
26 Section 2. Subsection (3) of section 550.2625, Florida
27 Statutes, is amended to read:
28 550.2625 Horseracing; minimum purse requirement,
29 Florida breeders' and owners' awards.--
30 (3) Each horseracing permitholder conducting any
31 thoroughbred race under this chapter, including any intertrack
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1 race taken pursuant to ss. 550.615-550.6305 or any interstate
2 simulcast taken pursuant to s. 550.3551(3) shall pay a sum
3 equal to 0.955 percent on all pari-mutuel pools conducted
4 during any such race for the payment of breeders', and
5 stallion, or special racing awards as authorized in this
6 chapter section. This subsection also applies to all
7 Breeder's Cup races conducted outside this state taken
8 pursuant to s. 550.3551(3). On any race originating live in
9 this state which is broadcast out-of-state to any location at
10 which wagers are accepted pursuant to s. 550.3551(2), the host
11 track is required to pay 3.475 percent of the gross revenue
12 derived from such out-of-state broadcasts as breeders', and
13 stallion, or special racing awards. The Florida Thoroughbred
14 Breeders' Association is authorized to receive these payments
15 from the permitholders and make payments of awards earned.
16 The Florida Thoroughbred Breeders' Association has the right
17 to withhold up to 10 percent of the permitholder's payments
18 under this section as a fee for administering the payments of
19 awards and for general promotion of the industry. The
20 permitholder shall remit these payments to the Florida
21 Thoroughbred Breeders' Association by the 5th day of each
22 calendar month for such sums accruing during the preceding
23 calendar month and shall report such payments to the division
24 as prescribed by the division. With the exception of the
25 10-percent fee, the moneys paid by the permitholders shall be
26 maintained in a separate, interest-bearing account, and such
27 payments together with any interest earned shall be used
28 exclusively for the payment of breeders', awards and stallion,
29 or special racing awards in accordance with the following
30 provisions:
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Florida Senate - 2003 SB 1490
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1 (a) The breeder of each Florida-bred thoroughbred
2 horse winning a thoroughbred horse race is entitled to an
3 award of up to, but not exceeding, 20 percent of the announced
4 gross purse, including nomination fees, eligibility fees,
5 starting fees, supplementary fees, and moneys added by the
6 sponsor of the race.
7 (b) The owner or owners of the sire of a Florida-bred
8 thoroughbred horse that wins a stakes race is entitled to a
9 stallion award of up to, but not exceeding, 20 percent of the
10 announced gross purse, including nomination fees, eligibility
11 fees, starting fees, supplementary fees, and moneys added by
12 the sponsor of the race.
13 (c) The owners of registered Florida-bred thoroughbred
14 horses participating winning or placing in thoroughbred stakes
15 races, nonstakes races, or both may receive a special racing
16 an award in accordance with the agreement a plan established
17 pursuant to in s. 550.26165(1).
18 (d) In order for a breeder of a Florida-bred
19 thoroughbred horse to be eligible to receive a breeder's
20 award, or for the owners of a registered Florida-bred
21 thoroughbred horse to be eligible to receive an award under
22 paragraph (c), the horse must have been registered as a
23 Florida-bred horse with the Florida Thoroughbred Breeders'
24 Association, and the Jockey Club certificate for the horse
25 must show that it has been duly registered as a Florida-bred
26 horse as evidenced by the seal and proper serial number of the
27 Florida Thoroughbred Breeders' Association registry. The
28 Florida Thoroughbred Breeders' Association shall be permitted
29 to charge the registrant a reasonable fee for this
30 verification and registration.
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Florida Senate - 2003 SB 1490
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1 (e) In order for an owner of the sire of a
2 thoroughbred horse winning a stakes race to be eligible to
3 receive a stallion award, the stallion must have been
4 registered with the Florida Thoroughbred Breeders'
5 Association, and the breeding of the registered Florida-bred
6 horse must have occurred in this state. The stallion must be
7 standing permanently in this state during the period of time
8 between February 1 and June 15 of each year or, if the
9 stallion is dead, must have stood permanently in this state
10 for a period of not less than 1 year immediately prior to its
11 death. The removal of a stallion from this state during the
12 period of time between February 1 and June 15 of any year for
13 any reason, other than exclusively for prescribed medical
14 treatment, as approved by the Florida Thoroughbred Breeders'
15 Association, renders the owner or owners of the stallion
16 ineligible to receive a stallion award under any circumstances
17 for offspring sired prior to removal; however, if a removed
18 stallion is returned to this state, all offspring sired
19 subsequent to the return make the owner or owners of the
20 stallion eligible for the stallion award but only for those
21 offspring sired subsequent to such return to this state. The
22 Florida Thoroughbred Breeders' Association shall maintain
23 complete records showing the date the stallion arrived in this
24 state for the first time, whether or not the stallion remained
25 in the state permanently, the location of the stallion, and
26 whether the stallion is still standing in this state and
27 complete records showing awards earned, received, and
28 distributed. The association may charge the owner, owners, or
29 breeder a reasonable fee for this service.
30 (f) A permitholder conducting a thoroughbred horse
31 race under the provisions of this chapter shall, within 30
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1 days after the end of the race meet during which the race is
2 conducted, certify to the Florida Thoroughbred Breeders'
3 Association such information relating to the thoroughbred
4 horses winning a stakes or other horserace at the meet as may
5 be required to determine the eligibility for payment of
6 breeders', awards and stallion, and special racing awards.
7 (g) The Florida Thoroughbred Breeders' Association
8 shall maintain complete records showing the starters and
9 winners in all races conducted at thoroughbred tracks in this
10 state; shall maintain complete records showing awards earned,
11 received, and distributed; and may charge the owner, owners,
12 or breeder a reasonable fee for this service.
13 (h) The Florida Thoroughbred Breeders' Association
14 shall annually establish a uniform rate and procedure for the
15 payment of breeders' and stallion awards and shall make
16 breeders' and stallion award payments in strict compliance
17 with the established uniform rate and procedure plan. The
18 plan may set a cap on winnings and may limit, exclude, or
19 defer payments to certain classes of races, such as the
20 Florida stallion stakes races, in order to assure that there
21 are adequate revenues to meet the proposed uniform rate. Such
22 plan must include proposals for the general promotion of the
23 industry. Priority shall be placed upon imposing such
24 restrictions in lieu of allowing the uniform rate to be less
25 than 15 percent of the total purse payment. The uniform rate
26 and procedure plan must be approved by the division before
27 implementation. In the absence of an approved plan and
28 procedure, the authorized rate for breeders' and stallion
29 awards is 15 percent of the announced gross purse for each
30 race. Such purse must include nomination fees, eligibility
31 fees, starting fees, supplementary fees, and moneys added by
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1 the sponsor of the race. If the funds in the account for
2 payment of breeders' and stallion awards are not sufficient to
3 meet all earned breeders' and stallion awards, those breeders
4 and stallion owners not receiving payments have first call on
5 any subsequent receipts in that or any subsequent year.
6 (i) The Florida Thoroughbred Breeders' Association
7 shall keep accurate records showing receipts and disbursements
8 of such payments and shall annually file a full and complete
9 report to the division showing such receipts and disbursements
10 and the sums withheld for administration. The division may
11 audit the records and accounts of the Florida Thoroughbred
12 Breeders' Association to determine that payments have been
13 made to eligible breeders and stallion owners in accordance
14 with this section.
15 (j) If the division finds that the Florida
16 Thoroughbred Breeders' Association has not complied with any
17 provision of this section, the division may order the
18 association to cease and desist from receiving funds and
19 administering funds received under this section. If the
20 division enters such an order, the permitholder shall make the
21 payments authorized in this section to the division for
22 deposit into the Pari-mutuel Wagering Trust Fund; and any
23 funds in the Florida Thoroughbred Breeders' Association
24 account shall be immediately paid to the Division of
25 Pari-mutuel Wagering for deposit to the Pari-mutuel Wagering
26 Trust Fund. The division shall authorize payment from these
27 funds to any breeder or stallion owner entitled to an award
28 that has not been previously paid by the Florida Thoroughbred
29 Breeders' Association in accordance with the applicable rate.
30 Section 3. Subsection (4) of section 550.5251, Florida
31 Statutes, is amended to read:
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1 550.5251 Florida thoroughbred racing; certain permits;
2 operating days.--
3 (4) A thoroughbred racing permitholder may not begin
4 any race later than 7 p.m. However, Any thoroughbred
5 permitholder in a county in which the authority for cardrooms
6 has been approved by the board of county commissioners may
7 elect not to operate a cardroom and, when conducting live
8 races during its current race meet, may and instead to receive
9 and rebroadcast out-of-state races after the hour of 7 p.m. on
10 any day during which the permitholder conducts live races.
11 However, such permitholder may not engage in both operating a
12 cardroom and receiving or rebroadcasting out-of-state races
13 after 7 p.m. Permitholders shall be required to elect between
14 either operating a cardroom or engaging in simulcasting after
15 7 p.m. at the time of submitting its application for its
16 annual license pursuant to this section.
17 Section 4. Paragraph (a) of subsection (2),
18 subsections (5), (7), and (8), and paragraphs (a) and (d) of
19 subsection (13) of section 849.086, Florida Statutes, are
20 amended to read:
21 849.086 Cardrooms authorized.--
22 (2) DEFINITIONS.--As used in this section:
23 (a) "Authorized game games" means a game or series of
24 games of poker only those games authorized by s. 849.085(2)(a)
25 and which are played in a nonbanking manner.
26 (5) LICENSE REQUIRED; APPLICATION; FEES.--No person
27 may operate a cardroom in this state unless such person holds
28 a valid cardroom license issued pursuant to this section.
29 (a) Only those persons holding a valid cardroom
30 license issued by the division may operate a cardroom. A
31 cardroom license may only be issued to a licensed pari-mutuel
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1 permitholder and an authorized cardroom may only be operated
2 at the same facility at which the permitholder is authorized
3 under its valid pari-mutuel wagering permit to conduct
4 pari-mutuel wagering activities. Cardroom licenses are not
5 transferable.
6 (b) After the initial cardroom license is granted, the
7 application for the annual license renewal shall be made in
8 conjunction with the applicant's annual application for its
9 pari-mutuel license. If a permitholder has operated a cardroom
10 during any of the 3 previous fiscal years and fails to include
11 a renewal request for the operation of the cardroom in its
12 annual application for license renewal, the permitholder may
13 amend its annual application to include operation of the
14 cardroom. In order for a cardroom license to be renewed the
15 applicant must have requested, as part of its pari-mutuel
16 annual license application, to conduct at least 90 percent of
17 the total number of live performances conducted by such
18 permitholder during either the state fiscal year in which its
19 initial cardroom license was issued or the state fiscal year
20 immediately prior thereto. If the application is for a harness
21 permitholder cardroom, the applicant must have requested
22 authorization to conduct a minimum of 140 live performances
23 during the state fiscal year immediately prior thereto. If
24 more than one permitholder is operating at a facility, each
25 permitholder must have applied for a license to conduct a full
26 schedule of live racing.
27 (c) Persons seeking a license or a renewal thereof to
28 operate a cardroom shall make application on forms prescribed
29 by the division. Applications for cardroom licenses shall
30 contain all of the information the division, by rule, may
31 determine is required to ensure eligibility.
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1 (d) The annual cardroom license fee for each facility
2 shall be $1,000 for the first table and $500 for each
3 additional table to be operated at the cardroom. This license
4 fee shall be deposited by the division with the Treasurer to
5 the credit of the Pari-mutuel Wagering Trust Fund.
6 (7) CONDITIONS FOR OPERATING A CARDROOM.--
7 (a) A cardroom may only be operated only at the
8 location specified on the cardroom license issued by the
9 division, and such location may only be the location at which
10 the pari-mutuel permitholder is authorized to conduct
11 pari-mutuel wagering activities pursuant to such
12 permitholder's valid pari-mutuel permit or as otherwise
13 authorized by law and current license.
14 (b) A cardroom may be operated at the facility only
15 when the facility is authorized to accept wagers on
16 pari-mutuel events during its authorized meet. A cardroom may
17 operate between the hours of 12 noon and 12 midnight on any
18 day a pari-mutuel event is conducted live as a part of its
19 authorized meet. However, a permitholder who holds a valid
20 cardroom license may operate a cardroom between the hours of
21 12 noon and 12 midnight on any day that live racing of the
22 same class of permit is occurring within 35 miles of its
23 facility if no other holder of that same class of permit
24 within 35 miles is operating a cardroom at such time and if
25 all holders of the same class of permit within the 35-mile
26 area have given their permission in writing to the
27 permitholder to operate the cardroom during the designated
28 period. Application to operate a cardroom under this paragraph
29 must be made to the division as part of the annual license
30 application. begin operations within 2 hours prior to the post
31 time of the first pari-mutuel event conducted live at the
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1 pari-mutuel facility on which wagers are accepted and must
2 cease operations within 2 hours after the conclusion of the
3 last pari-mutuel event conducted live at the pari-mutuel
4 facility on which wagers are accepted.
5 (c) A cardroom operator must at all times employ and
6 provide a nonplaying dealer for each table on which authorized
7 card games which traditionally utilize a dealer are conducted
8 at the cardroom. Such dealers may not have any participatory
9 interest in any game other than the dealing of cards and may
10 not have an interest in the outcome of the game. The
11 providing of such dealers by a licensee shall not be construed
12 as constituting the conducting of a banking game by the
13 cardroom operator.
14 (d) Each cardroom operator shall conspicuously post
15 upon the premises of the cardroom a notice which contains a
16 copy of the cardroom license; a list of authorized games
17 offered by the cardroom; the wagering limits imposed by the
18 house, if any; any additional house rules regarding operation
19 of the cardroom or the playing of any game; and all costs to
20 players to participate, including any rake by the house. In
21 addition, each cardroom operator shall post at each table a
22 notice of the minimum and maximum bets authorized at such
23 table and the fee for participation in the game conducted.
24 (e) The cardroom facility shall be subject to
25 inspection by the division or any law enforcement agency
26 during the licensee's regular business hours. The inspection
27 will specifically encompass the permitholder internal control
28 procedures approved by the division.
29 (f) A cardroom operator may refuse entry to or refuse
30 to allow to play any person who is objectionable, undesirable,
31 or disruptive, but such refusal shall not be on the basis of
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1 race, creed, color, religion, sex, national origin, marital
2 status, physical handicap, or age, except as provided in this
3 section.
4 (8) METHOD OF WAGERS; LIMITATION.--
5 (a) No wagering may be conducted using money or other
6 negotiable currency. Games may only be played utilizing a
7 wagering system whereby all players' money is first converted
8 by the house to tokens or chips which shall be used for
9 wagering only at that specific cardroom.
10 (b) The cardroom operator may limit the amount wagered
11 in any game or series of games, but the maximum bet winnings
12 of any player in a single round, hand, or game may not exceed
13 $2 $10 in value. There may not be more than three raises in
14 any round of betting. The fee charged by the cardroom for
15 participation in the game shall not be included in the
16 calculation of the limitation on the bet amount pot size
17 provided in this paragraph.
18 (13) TAXES AND OTHER PAYMENTS.--
19 (a) Each cardroom operator shall pay a tax to the
20 state of 10 percent of the cardroom operation's monthly gross
21 receipts.
22 (d) Each greyhound and jai alai permitholder that
23 which operates a cardroom facility shall use utilize at least
24 4 percent of such permitholder's cardroom monthly gross
25 receipts to supplement greyhound purses or jai alai prize
26 money, respectively, during the permitholder's next ensuing
27 pari-mutuel meet. Each thoroughbred and harness horse racing
28 permitholder that which operates a cardroom facility shall use
29 utilize at least 50 percent of such permitholder's cardroom
30 monthly net proceeds as follows: 47 percent to supplement
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1 purses and 3 percent to supplement breeders' awards during the
2 permitholder's next ensuing racing meet.
3 Section 5. This act shall take effect July 1, 2003.
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6 SENATE SUMMARY
7 Provides for special racing awards, in addition to
Florida breeders' awards and owners' awards, to be
8 distributed to owners of thoroughbred horses
participating in stakes races or nonstakes races. Allows
9 thoroughbred racing permitholders to operate cardrooms.
Redefines the term "authorized game" to mean a game or
10 series of games of poker. Provides for permitholders to
amend an application to include the operation of a
11 cardroom. Authorizes the operation of a cardroom between
12 noon and 12 midnight, with certain limitations.
12 Provides for the cardroom operator to limit the amount
wagered. Restricts the maximum bet to $2 and prohibits
13 more than three raises in any round of betting. (See bill
for details.)
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