Senate Bill sb2834

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    Florida Senate - 2003                                  SB 2834

    By Senator Haridopolos





    26-2161-03

  1                      A bill to be entitled

  2         An act relating to pari-mutuel wagering;

  3         amending s. 550.09515, F.S.; deleting

  4         provisions that require a thoroughbred horse

  5         permit to be voided and to escheat to the state

  6         for failure to operate performances; deleting

  7         provisions for the reissuance of such escheated

  8         permit; amending s. 550.3551, F.S.; deleting a

  9         limitation on horsetracks receiving broadcasts

10         of races conducted out of this state; providing

11         clarification regarding simulcast horseraces;

12         amending s. 550.5251, F.S.; revising provisions

13         for application and issuance of certain

14         thoroughbred horse permits; providing for

15         penalties for failure to operate full schedule

16         of performances by such permitholders;

17         providing procedures for election not to

18         operate live performances; providing that such

19         election shall not affect the validity of a

20         permit; exempting from penalties thoroughbred

21         permitholders who failed to operate full

22         schedule of performances during specified

23         seasons; deleting a limitation on beginning

24         thoroughbred races after 7 p.m.; amending s.

25         550.6305, F.S.; authorizing certain intertrack

26         wagering; providing an effective date.

27  

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

29  

30         Section 1.  Subsections (3), (4), (5), (6), and (7) of

31  section 550.09515, Florida Statutes, are amended to read:

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 1         550.09515  Thoroughbred horse taxes; abandoned interest

 2  in a permit for nonpayment of taxes.--

 3         (3)(a)  The permit of a thoroughbred horse permitholder

 4  who does not pay tax on handle for live thoroughbred horse

 5  performances for a full schedule of live races during any 2

 6  consecutive state fiscal years shall be void and shall escheat

 7  to and become the property of the state unless such failure to

 8  operate and pay tax on handle was the direct result of fire,

 9  strike, war, or other disaster or event beyond the ability of

10  the permitholder to control. Financial hardship to the

11  permitholder shall not, in and of itself, constitute just

12  cause for failure to operate and pay tax on handle.

13         (b)  In order to maximize the tax revenues to the

14  state, the division shall reissue an escheated thoroughbred

15  horse permit to a qualified applicant pursuant to the

16  provisions of this chapter as for the issuance of an initial

17  permit. However, the provisions of this chapter relating to

18  referendum requirements for a pari-mutuel permit shall not

19  apply to the reissuance of an escheated thoroughbred horse

20  permit. As specified in the application and upon approval by

21  the division of an application for the permit, the new

22  permitholder shall be authorized to operate a thoroughbred

23  horse facility anywhere in the same county in which the

24  escheated permit was authorized to be operated,

25  notwithstanding the provisions of s. 550.054(2) relating to

26  mileage limitations.

27         (3)(4)  In the event that a court of competent

28  jurisdiction determines any of the provisions of this section

29  to be unconstitutional, it is the intent of the Legislature

30  that the provisions contained in this section shall be null

31  and void and that the provisions of s. 550.0951 shall apply to

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 1  all thoroughbred horse permitholders beginning on the date of

 2  such judicial determination. To this end, the Legislature

 3  declares that it would not have enacted any of the provisions

 4  of this section individually and, to that end, expressly finds

 5  them not to be severable.

 6         (4)(5)  Notwithstanding the provisions of s.

 7  550.0951(3)(c), the tax on handle for intertrack wagering on

 8  rebroadcasts of simulcast horseraces is 2.4 percent of the

 9  handle; provided however, that if the guest track is a

10  thoroughbred track located more than 35 miles from the host

11  track, the host track shall pay a tax of .5 percent of the

12  handle, and additionally the host track shall pay to the guest

13  track 1.9 percent of the handle to be used by the guest track

14  solely for purses. The tax shall be deposited into the

15  Pari-mutuel Wagering Trust Fund.

16         (5)(6)  A credit equal to the amount of contributions

17  made by a thoroughbred permitholder during the taxable year

18  directly to the Jockeys' Guild or its health and welfare fund

19  to be used to provide health and welfare benefits for active,

20  disabled, and retired Florida jockeys and their dependents

21  pursuant to reasonable rules of eligibility established by the

22  Jockeys' Guild is allowed against taxes on live handle due for

23  a taxable year under this section. A thoroughbred permitholder

24  may not receive a credit greater than an amount equal to 1

25  percent of its paid taxes for the previous taxable year.

26         (6)(7)  If a thoroughbred permitholder fails to operate

27  all performances on its 2001-2002 license, failure to pay tax

28  on handle for a full schedule of live races for those

29  performances in the 2001-2002 fiscal year does not constitute

30  failure to pay taxes on handle for a full schedule of live

31  races in a fiscal year for the purposes of subsection (3).

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 1  This subsection may not be construed as forgiving a

 2  thoroughbred permitholder from paying taxes on performances

 3  conducted at its facility pursuant to its 2001-2002 license

 4  other than for failure to operate all performances on its

 5  2001-2002 license. This subsection expires July 1, 2003.

 6         Section 2.  Subsection (3) of section 550.3551, Florida

 7  Statutes, is amended, and subsection (15) is added to that

 8  section, to read:

 9         550.3551  Transmission of racing and jai alai

10  information; commingling of pari-mutuel pools.--

11         (3)  Any horse track licensed under this chapter may

12  receive broadcasts of horseraces conducted at other horse

13  racetracks located outside this state at the racetrack

14  enclosure of the licensee during its racing meet.

15         (a)  All broadcasts of horseraces received from

16  locations outside this state must comply with the provisions

17  of the Interstate Horseracing Act of 1978, 92 Stat. 1811, 15

18  U.S.C. ss. 3001 et seq.

19         (b)  Wagers accepted at the horse track in this state

20  may be, but are not required to be, included in the

21  pari-mutuel pools of the out-of-state horse track that

22  broadcasts the race. Notwithstanding any contrary provisions

23  of this chapter, if the horse track in this state elects to

24  include wagers accepted on such races in the pari-mutuel pools

25  of the out-of-state horse track that broadcasts the race, from

26  the amount wagered by patrons at the horse track in this state

27  and included in the pari-mutuel pools of the out-of-state

28  horse track, the horse track in this state shall deduct as the

29  takeout from the amount wagered by patrons at the horse track

30  in this state and included in the pari-mutuel pools of the

31  out-of-state horse track a percentage equal to the percentage

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 1  deducted from the amount wagered at the out-of-state racetrack

 2  as is authorized by the laws of the jurisdiction exercising

 3  regulatory authority over the out-of-state horse track.

 4         (c)  All forms of pari-mutuel wagering are allowed on

 5  races broadcast under this section, and all money wagered by

 6  patrons on such races shall be computed as part of the total

 7  amount of money wagered at each racing performance for

 8  purposes of taxation under ss. 550.0951, 550.09512, and

 9  550.09515.  Section 550.2625(2)(a), (b), and (c) does not

10  apply to any money wagered on races broadcast under this

11  section.  Similarly, the takeout shall be increased by breaks

12  and uncashed tickets for wagers on races broadcast under this

13  section, notwithstanding any contrary provision of this

14  chapter.

15         (15)  This chapter does not prevent a licensed horse

16  track from receiving and engaging in pari-mutuel wagering on

17  simulcast horseraces.

18         Section 3.  Subsections (2), (4), (5), (6), and (7) of

19  section 550.5251, Florida Statutes, are amended to read:

20         550.5251  Florida thoroughbred racing; certain permits;

21  operating days.--

22         (2)  Each permitholder referred to in subsection (1)

23  shall annually, during the period commencing December 15 of

24  each year and ending January 4 of the following year, file in

25  writing with the division its application to conduct one or

26  more thoroughbred racing meetings during the thoroughbred

27  racing season commencing on the following June 1. Each

28  application shall specify the number and dates of all

29  performances that the permitholder intends to conduct during

30  that thoroughbred racing season. On or before February 15 of

31  each year, the division shall issue a license authorizing each

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 1  permitholder to conduct performances on the dates specified in

 2  its application. Up to March 31 of each year, each

 3  permitholder may request and shall be granted changes in its

 4  authorized performances, and the division shall issue a

 5  license on or before April 30 of each year authorizing each

 6  permitholder to conduct performances on the dates specified in

 7  its application; but thereafter, as a condition precedent to

 8  the validity of its license and its right to retain its

 9  permit, each permitholder must operate the full number of days

10  authorized on each of the dates set forth in its license or be

11  subject to discipline pursuant to ss. 550.01215(4) and

12  550.0251(10). On or before February 15 of each year, a

13  permitholder may elect not to operate live performances during

14  the ensuing thoroughbred racing season by filing an amendment

15  to its application indicating its irrevocable election not to

16  operate and the division shall not issue a license to such

17  permitholder. An election not to operate shall not affect the

18  continuing validity of the permit of such permitholder. For

19  the 2003-2004 Florida Thoroughbred Racing Season only, an

20  election not to operate will be effective if delivered to the

21  division on or before July 1, 2003. Any thoroughbred

22  permitholder who failed to operate all performances that it

23  was authorized to operate under the license or licenses issued

24  to it by the division for either or both the 2001-2002 or

25  2002-2003 Florida Thoroughbred Racing Seasons shall be excused

26  from discipline by the division for its failure to operate

27  such performances, and its permit shall be deemed valid and in

28  good standing.

29         (4)  A thoroughbred racing permitholder may not begin

30  any race later than 7 p.m. However, any thoroughbred

31  permitholder in a county in which the authority for cardrooms

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 1  has been approved by the board of county commissioners may

 2  elect not to operate a cardroom when conducting live races

 3  during its current race meet and instead to receive and

 4  rebroadcast out-of-state races after the hour of 7 p.m. on any

 5  day during which the permitholder conducts live races.

 6  However, such permitholder may not engage in both operating a

 7  cardroom and receiving or rebroadcasting out-of-state races

 8  after 7 p.m.  Permitholders shall be required to elect between

 9  either operating a cardroom or engaging in simulcasting after

10  7 p.m. at the time of submitting its application for its

11  annual license pursuant to this section.

12         (4)(5)(a)  Each licensed thoroughbred permitholder in

13  this state must run an average of one race per racing day in

14  which horses bred in this state and duly registered with the

15  Florida Thoroughbred Breeders' Association have preference as

16  entries over non-Florida-bred horses.  All licensed

17  thoroughbred racetracks shall write the conditions for such

18  races in which Florida-bred horses are preferred so as to

19  assure that all Florida-bred horses available for racing at

20  such tracks are given full opportunity to run in the class of

21  races for which they are qualified.  The opportunity of

22  running must be afforded to each class of horses in the

23  proportion that the number of horses in this class bears to

24  the total number of Florida-bred horses available.  A track is

25  not required to write conditions for a race to accommodate a

26  class of horses for which a race would otherwise not be run at

27  the track during its meeting.

28         (b)  Each licensed thoroughbred permitholder in this

29  state may run one additional race per racing day composed

30  exclusively of Arabian horses registered with the Arabian

31  Horse Registry of America.  Any licensed thoroughbred

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 1  permitholder that elects to run one additional race per racing

 2  day composed exclusively of Arabian horses registered with the

 3  Arabian Horse Registry of America is not required to provide

 4  stables for the Arabian horses racing under this paragraph.

 5         (c)  Each licensed thoroughbred permitholder in this

 6  state may run up to three additional races per racing day

 7  composed exclusively of quarter horses registered with the

 8  American Quarter Horse Association.

 9         (5)(6)  Notwithstanding the provisions of subsection

10  (2), a thoroughbred permitholder who fails to operate all

11  performances on its 2001-2002 license does not lose its right

12  to retain its permit. Such thoroughbred permitholder is

13  eligible for issuance of an annual license pursuant to s.

14  550.0115 for subsequent thoroughbred racing seasons. The

15  division shall take no disciplinary action against such

16  thoroughbred permitholder for failure to operate all licensed

17  performances for the 2001-2002 license pursuant to this

18  section or s. 550.01215. This section may not be interpreted

19  to prohibit the division from taking disciplinary action

20  against a thoroughbred permitholder for failure to pay taxes

21  on performances operated pursuant to its 2001-2002 license.

22  This subsection expires July 1, 2003.

23         (7)  A thoroughbred permitholder shall file an

24  amendment with the division no later than July 1, 2002, that

25  indicates that it will not be able to operate the performances

26  scheduled on its 2002-2003 license without imposition of any

27  penalty for failure to operate all licensed performances

28  provided in this chapter. This subsection expires July 1,

29  2003.

30         Section 4.  Subsection (9) of section 550.6305, Florida

31  Statutes, is amended to read:

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 1         550.6305  Intertrack wagering; guest track payments;

 2  accounting rules.--

 3         (9)  A host track that has contracted with an

 4  out-of-state horse track to broadcast live races conducted at

 5  such out-of-state horse track pursuant to s. 550.3551(5) may

 6  broadcast during its live meet such out-of-state races to any

 7  guest track and accept wagers thereon in the same manner as is

 8  provided in s. 550.3551.

 9         (a)  For purposes of this section, "net proceeds" means

10  the amount of takeout remaining after the payment of state

11  taxes, purses required pursuant to s. 550.0951(3)(c)1., the

12  cost to the permitholder required to be paid to the

13  out-of-state horse track, and breeders' awards paid to the

14  Florida Thoroughbred Breeders' Association and the Florida

15  Standardbred Breeders and Owners Association, to be used as

16  set forth in s. 550.625(2)(a) and (b).

17         (b)  Notwithstanding the provisions of subsection (1)

18  and s. 550.625(1) and (2)(a), the distribution of the net

19  proceeds that are retained by a thoroughbred host track from

20  the takeout on an out-of-state race rebroadcast under this

21  subsection shall be as follows:

22         1.  One-third of the remainder of such proceeds shall

23  be paid to the guest track;

24         2.  One-third of the remainder of such proceeds shall

25  be retained by the host track; and

26         3.  One-third of the remainder of such proceeds shall

27  be paid by the host track as purses at the host track.

28         (c)  All guest tracks other than thoroughbred

29  permitholders that are eligible to receive wagers on

30  out-of-state horseraces rebroadcast from a host track racing

31  under a thoroughbred horse permit shall be subject to the

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 1  distribution of the net proceeds as specified in paragraph (a)

 2  unless the host and guest permitholders and the recognized

 3  horseman's group agree to a different distribution of their

 4  respective portions of the proceeds by contract.

 5         (d)  Any permitholder located in any area of the state

 6  where there are only two permits, one for dogracing and one

 7  for jai alai, may accept wagers on rebroadcasts of

 8  out-of-state thoroughbred horse races from an in-state

 9  thoroughbred horse racing permitholder and shall not be

10  subject to the provisions of paragraph (b) if such

11  thoroughbred horse racing permitholder located within the area

12  specified in this paragraph is both conducting live races and

13  accepting wagers on out-of-state horseraces.  In such case,

14  the guest permitholder shall be entitled to 45 percent of the

15  net proceeds on wagers accepted at the guest facility.  The

16  remaining proceeds shall be distributed as follows: one-half

17  shall be retained by the host facility and one-half shall be

18  paid by the host facility as purses at the host facility.

19         (e)  Notwithstanding the provisions of subsection (1)

20  and s. 550.625(1) and (2)(b), the proceeds that are retained

21  by a harness host facility from the takeout on a race

22  broadcast under this subsection shall be distributed as

23  follows:

24         1.  Of the total intertrack handle on the broadcast, 1

25  percent shall be deducted from the proceeds and paid to the

26  Florida Standardbred Breeders and Owners Association, Inc., to

27  be used as set forth in s. 550.625(2)(b);

28         2.  One-third of the remainder of such proceeds shall

29  be paid to the guest facility;

30         3.  One-third of the remainder of such proceeds shall

31  be retained by the host facility; and

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 1         4.  One-third of the remainder of said proceeds shall

 2  be paid by the host facility as purses at the host facility.

 3         (f)  Any permitholder located in any area of the state

 4  where there are only two permits, one for dogracing and one

 5  for jai alai, may accept wagers on rebroadcasts of

 6  out-of-state harness horse races from an in-state harness

 7  horse racing permitholder and shall not be subject to the

 8  provisions of paragraph (b) if such harness horse racing

 9  permitholder located within the area specified in this

10  paragraph is conducting live races.  In such case, the guest

11  permitholder shall be entitled to 45 percent of the net

12  proceeds on wagers accepted at the guest facility.  The

13  remaining proceeds shall be distributed as follows: one-half

14  shall be retained by the host facility and one-half shall be

15  paid by the host facility as purses at the host facility.

16         (g)1.  Any thoroughbred permitholder that which accepts

17  wagers on a simulcast signal must, during its live meet, make

18  the signal available to any permitholder that is eligible to

19  conduct intertrack wagering under the provisions of ss.

20  550.615-550.6345.

21         2.  Any thoroughbred permitholder that which accepts

22  wagers on a simulcast signal received after 6 p.m. must,

23  during its live meet, make such signal available to any

24  permitholder that is eligible to conduct intertrack wagering

25  under the provisions of ss. 550.615-550.6345, including any

26  permitholder located as specified in s. 550.615(6).  Such

27  guest permitholders are authorized to accept wagers on such

28  simulcast signal, notwithstanding any other provision of this

29  chapter to the contrary.

30         3.  Any thoroughbred permitholder which accepts wagers

31  on a simulcast signal received after 6 p.m. must make such

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 1  signal available to any permitholder that is eligible to

 2  conduct intertrack wagering under the provisions of ss.

 3  550.615-550.6345, including any permitholder located as

 4  specified in s. 550.615(9).  Such guest permitholders are

 5  authorized to accept wagers on such simulcast signals for a

 6  number of performances not to exceed that which constitutes a

 7  full schedule of live races for a quarter horse permitholder

 8  pursuant to s. 550.002(11), notwithstanding any other

 9  provision of this chapter to the contrary, except that the

10  restrictions provided in s. 550.615(9)(a) apply to wagers on

11  such simulcast signals.

12  

13  No thoroughbred permitholder shall be required to continue to

14  rebroadcast a simulcast signal to any in-state permitholder if

15  the average per performance gross receipts returned to the

16  host permitholder over the preceding 30-day period were less

17  than $100.  Subject to the provisions of s. 550.615(4), as a

18  condition of receiving rebroadcasts of thoroughbred simulcast

19  signals under this paragraph, a guest permitholder must accept

20  intertrack wagers on all live races conducted by all

21  then-operating thoroughbred permitholders.

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

23  

24            *****************************************

25                          SENATE SUMMARY

26    Deletes provisions requiring the escheat of a license for
      failure to operate horseracing performances and providing
27    for the reissuance of such licenses. Provides penalties
      for failure to operate a full schedule of performances.
28    Revises provisions relating to pari-mutuel intertrack
      wagering, expanding the scope of such wagering. (See bill
29    for details.)

30  

31  

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