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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 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:

31  

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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.

31  

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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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    Florida Senate - 2003                                  SB 1490
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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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    Florida Senate - 2003                                  SB 1490
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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

31  

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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.

 4  

 5            *****************************************

 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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