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A bill to be entitled |
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An act relating to video lotteries; amending s. 24.103, |
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F.S.; providing definitions; amending s. 24.105, F.S.; |
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providing powers and duties of the Department of the |
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Lottery pertaining to video lottery games; creating s. |
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24.125, F.S.; providing for the adoption of rules; |
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creating s. 24.126, F.S.; prohibiting certain persons from |
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playing video lottery games; providing penalties; creating |
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s. 24.127, F.S.; providing requirements for the operation |
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of video lottery games; providing penalties; providing for |
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the adoption of rules; providing for the distribution of |
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proceeds from such games; creating s. 24.128, F.S.; |
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providing for the licensure of video lottery terminal |
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vendors; creating s. 24.129, F.S.; prohibiting certain |
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local zoning ordinances; creating s. 24.130, F.S.; |
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providing requirements for video lottery terminals; |
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creating s. 24.131, F.S.; requiring video lottery terminal |
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vendors to establish training programs for employees who |
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service such terminals; requiring departmental approval of |
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such programs; providing certification requirements of |
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such employees; providing for the adoption of rules; |
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creating s. 24.132, F.S.; providing guidelines for |
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administering the Video Lottery Purse Trust Fund; |
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providing for the adoption of rules; creating s. 24.133, |
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F.S., relating to the distribution of funds from the Video |
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Lottery Thoroughbred Trust Fund; requiring certain uses of |
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distributed funds; creating s. 24.134, F.S.; requiring |
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operators of facilities where video lottery games are |
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conducted to post certain warning signs and print warnings |
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on daily racing programs regarding compulsive gambling; |
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amending s. 212.02, F.S.; excluding video lottery |
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terminals from the definition of "coin-operated amusement |
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machine" for purposes of the sales and use tax; requiring |
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the Alcohol, Drug Abuse, and Mental Health Program Office |
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within the Department of Children and Family Services to |
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establish a compulsive gambling program; providing an |
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effective date. |
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Be It Enacted by the Legislature of the State of Florida: |
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Section 1. Subsections (7), (8), (9), and (10) are added |
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to section 24.103, Florida Statutes, to read: |
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24.103 Definitions.--As used in this act: |
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(7) "Video lottery game" means an electronically simulated |
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game involving any element of chance which is played on a video |
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lottery terminal that, upon insertion of cash, tokens, credits, |
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or vouchers, is available to play or simulate a lottery-type |
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game, including line-up games using a video display and |
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microprocessors and in which, by means of an element of chance, |
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a player may receive credits that can be redeemed for cash. |
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"Video lottery game" also means an electronically simulated game |
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involving elements of chance and skill which is played on a |
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video lottery terminal that, upon insertion of cash, tokens, |
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credits, or vouchers, is available to play or simulate the play |
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of traditional card games, including video poker, which uses a |
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cathode ray tube or video display screen and microprocessors, |
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and in which the player may win credits that can be redeemed for |
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cash. "Video lottery game" also includes a progressive game, |
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which is any game in which a jackpot grows and accumulates as it |
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is being played on a video lottery terminal or a network of |
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video lottery terminals, and in which the outcome is randomly |
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determined by the play of video lottery terminals linked by a |
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central network. A video lottery terminal may use spinning reels |
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or video displays. |
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(8) "Video lottery terminal vendor" means any person |
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approved by the department who provides the video lottery |
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terminals to a video lottery retailer or provides computer |
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equipment or software related to video lottery terminals to the |
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department. |
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(9) "Net terminal income" means currency or other |
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consideration placed into a video lottery terminal, less credits |
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redeemed by players. |
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(10) "Video lottery retailer" means any person who |
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possesses a pari-mutuel permit issued under chapter 550 on or |
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before July 1, 2002, and who conducted a full schedule of live |
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jai alai games or live greyhound, thoroughbred horse, or harness |
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racing as defined in s. 550.002 in the prior calendar year, or |
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any person who is authorized to receive broadcasts of horseraces |
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under s. 550.6308. The term also includes a thoroughbred |
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permitholder that failed to operate all performances under its |
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license for 2002-2003, that has retained or regained its permit |
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and license, and that conducts a full schedule of live racing as |
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defined in s. 550.002. |
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Section 2. Subsections (21) through (26) are added to |
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section 24.105, Florida Statutes, to read: |
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24.105 Powers and duties of department.--The department |
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shall: |
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(21) Have in place the capacity to support video lottery |
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games at facilities of video lottery retailers by October 1, |
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2003. |
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(22) Hear and decide promptly and in reasonable order all |
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license applications or proceedings for suspension or revocation |
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of licenses. |
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(23) Collect and disburse revenue due the department as |
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described in this chapter. |
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(24) Certify net terminal income by inspecting records, |
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conducting audits, or any other reasonable means. |
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(25) Provide a list of approved vendors and maintain a |
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current list of all contracts between video lottery terminal |
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vendors and video lottery retailers. |
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(26) Approve or disapprove applications to operate as a |
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video lottery retailer within 30 days after receipt of the |
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application. |
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Section 3. Section 24.125, Florida Statutes, is created to |
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read: |
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24.125 Rules authorized.--The department may adopt rules |
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relating to: |
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(1) The regulation of video lottery retailers and video |
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lottery products. |
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(2) Specifications for video lottery terminals to be |
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approved and authorized as the department considers necessary to |
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maintain the integrity of video lottery games and terminals. |
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Initial rules sufficient to permit the operation of video |
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lotteries and the licensing of video lottery retailers shall be |
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adopted no later than July 1, 2003. The department may not |
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provide specifications that would result in reducing to fewer |
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than four the number of video lottery terminal vendors who |
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supply terminals. |
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(3) The licensure and regulation of video lottery terminal |
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vendors. The department may not approve as a video lottery |
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terminal vendor any person who has an interest in a video |
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lottery retailer or a business relationship with a video lottery |
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retailer other than as a vendor or lessor of video lottery |
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terminals. |
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Section 4. Section 24.126, Florida Statutes, is created to |
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read: |
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24.126 Video lottery; minimum age.-- |
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(1) A person who is less than 18 years of age may not play |
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a video lottery game. |
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(2) Each video lottery retailer shall post a clear and |
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conspicuous sign on all video lottery terminals which states: |
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THE USE OF A VIDEO LOTTERY TERMINAL BY PERSONS UNDER THE AGE OF |
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18 IS AGAINST FLORIDA LAW. PROOF OF AGE IS REQUIRED FOR USE. |
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(3) Any person who violates this section commits a |
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misdemeanor of the second degree, punishable as provided in s. |
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775.082 or s. 775.083. |
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Section 5. Section 24.127, Florida Statutes, is created to |
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read: |
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24.127 Video lottery games.-- |
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(1) Video lottery games may be offered by a video lottery |
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retailer only at its pari-mutuel facility. During any calendar |
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year in which a video lottery retailer maintains video lottery |
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terminals, the retailer must conduct a full schedule of live |
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racing or games as defined in s. 550.002 or be authorized to |
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receive broadcasts of horseraces pursuant to s. 550.6308. The |
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department may waive such requirements upon a showing that the |
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failure to conduct such games resulted from a natural disaster |
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or other acts beyond the control of the permitholder. If the |
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retailer fails to comply with the requirement to conduct a full |
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schedule of races or games, the department shall order the |
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retailer to suspend its video lottery operation. The department |
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may assess an administrative fine not to exceed $5,000 per video |
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lottery terminal, per day, against any retailer who fails to |
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suspend its video lottery operation when ordered by the |
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department. The department may enforce a suspension order or any |
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administrative fine as provided in s. 120.69. Each video lottery |
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retailer shall post a bond payable to the state in an amount |
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determined by the department which is sufficient to guarantee |
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the payment of revenue due in any payment period. |
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(2) Each video lottery terminal retailer shall notify the |
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department prior to operating video lottery games. |
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(3) To facilitate the auditing and security programs |
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critical to the integrity of the video lottery system, the |
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department shall have overall control of the entire system. Each |
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video lottery terminal shall be linked, directly or indirectly, |
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to a computer system under the control of the department. |
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(4) The department shall determine, by rule, the method by |
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which cash receipts will be electronically validated and |
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redeemed. |
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(5) Video lottery games may be played at an authorized |
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video lottery retailer's facility even if the retailer is not |
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conducting a pari-mutuel event. |
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(6) Video lottery games shall pay out a minimum of 88 |
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percent and no more than 99 percent of the amount of cash, |
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tokens, credits, or vouchers put into a video lottery terminal. |
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The department may permit the payment of a lesser percentage if |
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requested by a video lottery retailer and the department has |
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determined that the payment of a minimum of 88 percent is not |
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financially viable at the location and that the total amount of |
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net revenue payable to the state will not be negatively |
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impacted. Such percentages shall be measured on an annual basis. |
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(7) Income derived from video lottery operations is not |
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subject to s. 24.121. The allocation of net terminal income |
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derived from video lottery games shall be as follows: |
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(a) Thirty-two percent to the Video Lottery Administrative |
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Trust Fund for transfer to the Education Enhancement Trust Fund. |
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(b) Two percent to the Video Lottery Administrative Trust |
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Fund for transfer in equal shares to the counties in which the |
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pari-mutuel facilities having video lottery terminals are |
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located. If any pari-mutuel facility having video lottery |
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terminals is located within an incorporated municipality, 25 |
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percent of the equal share of the 2 percent otherwise to be |
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transferred to the county in which the facility is located shall |
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instead be transferred to the municipality. |
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(c) Two percent to the Video Lottery Administrative Trust |
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Fund for transfer to the Administrative Trust Fund. |
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(d) Eight percent to the Video Lottery Administrative |
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Trust Fund for transfer to the Video Lottery Purse Trust Fund, |
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to be distributed pursuant to s. 24.132. |
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(e) To the Video Lottery Administrative Trust Fund for |
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transfer to the Department of Children and Family Services, 0.25 |
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percent for the establishment and administration of a treatment |
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program for compulsive gambling. |
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(f) If the video lottery retailer holds a valid harness |
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racing permit under chapter 550, 6 percent of its net terminal |
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income shall be distributed by the video lottery retailer as |
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purses for live performances conducted at the video lottery |
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retailer's pari-mutuel facility in accordance with chapter 550. |
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(g) If the video lottery retailer holds a valid jai alai |
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permit under chapter 550, 6 percent of its net terminal income |
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shall be distributed by the video lottery retailer as purses for |
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live performances conducted at the video lottery retailer's |
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pari-mutuel facility in accordance with chapter 550. |
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(h) If the video lottery retailer holds a valid greyhound |
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racing permit under chapter 550, 6 percent of its net terminal |
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income shall be distributed by the video lottery retailer as |
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purses for live performances conducted at the video lottery |
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retailer's pari-mutuel facility in accordance with chapter 550. |
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(i) To be retained by the video lottery retailer as |
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compensation: |
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1. If a valid thoroughbred permitholder under chapter 550, |
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51.75 percent to be distributed as provided in paragraph (j). |
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2. If a valid holder of a permit other than a thoroughbred |
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permit, 45.75 percent. |
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3. If the holder of a license issued pursuant to s. |
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550.6308, 51.75 percent to be distributed as provided in |
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paragraph (k). |
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(j) If the video lottery retailer holds a valid |
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thoroughbred racing permit under chapter 550, of the remaining |
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net terminal income generated at its facility: |
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1. 3.3 percent shall be distributed for use as Florida |
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thoroughbred breeders' and stallion awards pursuant to ss. |
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550.26165 and 550.2625, subject to the fee provided in s. |
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550.2625(3). From the funds to be distributed pursuant to this |
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subparagraph, one-half shall be used for awards to owners of |
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registered Florida-bred thoroughbred horses participating in |
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prescribed thoroughbred stakes races, nonstakes races, or both, |
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in accordance with a written agreement establishing the rate, |
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procedure, and eligibility requirements for such awards entered |
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into by the permitholder, the Florida Thoroughbred Breeders' |
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Association, and the Florida Horsemen's Benevolent and |
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Protective Association, Inc., or the association representing a |
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majority of the thoroughbred racehorse owners and trainers at |
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the video lottery retailer's pari-mutuel facility. |
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2. 0.25 percent shall be distributed as provided by |
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written agreement between the video lottery retailer and the |
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Florida Horsemen's Benevolent and Protective Association, Inc., |
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or the association representing a majority of the thoroughbred |
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racehorse owners and trainers at the video lottery retailer's |
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pari-mutuel facility. All funds to be distributed under this |
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subparagraph shall be used exclusively to fund equine drug and |
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medication research or related equine research at the University |
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of Florida, including required capital improvements, and for |
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medical, dental, surgical, financial, or retirement benefits for |
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occupational licensees who are employed in connection with the |
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conduct of live thoroughbred racing in this state, but who are |
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not permitholders' employees. |
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3. 96.45 percent shall be distributed as provided by |
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written agreement between the video lottery retailer and the |
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Florida Horsemen's Benevolent and Protective Association or the |
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association representing a majority of the thoroughbred |
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racehorse owners and trainers at the video lottery retailer's |
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pari-mutuel facility. The written agreement shall consider the |
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cost and expenses for capital improvements and operating costs |
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of the video lottery retailer and purses to be paid on live |
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performances and shall be reasonable in accordance with industry |
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standards applied to similar circumstances in other states. |
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(k) If the video lottery retailer holds a license issued |
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pursuant to s. 550.6308, of the remaining net terminal income |
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generated at its facility: |
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1. 3.3 percent shall be distributed for use as Florida |
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thoroughbred breeders' and stallion awards pursuant to ss. |
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550.26165 and 550.2625, subject to the fee provided in s. |
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550.2625(3). |
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2. 96.7 percent shall be distributed as provided by |
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written agreement between the video lottery retailer and the |
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Florida Thoroughbred Breeders' Association. A video lottery |
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retailer required to enter into a contract by this subparagraph |
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may not conduct video lottery games unless such contract is in |
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effect. All funds not retained by the video lottery retailer |
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under any such contract shall be used exclusively for awards to |
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thoroughbred breeders, owners, and stallion owners pursuant to |
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ss. 550.26165 and 550.2625, subject to the fee provided in s. |
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550.2625(3); for general promotion of the industry; and for the |
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University of Florida College of Veterinary Medicine for the |
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purpose of funding the operations of the Division of Pari-Mutuel |
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Wagering laboratory, as referenced in s. 550.2415, and for the |
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college's equine department for the purchase of equipment and |
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supplies and for equine research. |
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(8) The allocation provided in subsection (7) shall be |
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made weekly. Amounts allocated pursuant to paragraphs (7)(a)- |
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(e) shall be remitted to the department by electronic transfer |
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within 24 hours after the allocation is determined. If live |
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meets were conducted at the pari-mutuel facility of the video |
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lottery retailer during the weekly period for which the |
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allocation is made, the portion of the allocation to be |
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distributed pursuant to paragraphs(7)(f), (g), and (h) shall be |
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paid as purses for those live meets. If no live meets were |
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conducted at the pari-mutuel facility during the weekly period |
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for which the allocation is made, the distribution of purse |
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money shall be made during the next ensuing meet. The interest |
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income on funds required to be distributed under paragraphs |
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(7)(f), (g), and (h) prior to their distribution as purses shall |
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be distributed by the video lottery retailer as purses for live |
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performances conducted at the video lottery retailer's pari- |
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mutuel facility in accordance with chapter 550. |
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(9) Any person who, with intent to do so, manipulates or |
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attempts to manipulate the outcome, payoff, or operation of a |
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video lottery terminal by physical or electronic tampering or |
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other means commits a felony of the third degree, punishable as |
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provided in s. 775.082, s. 775.083, or s. 775.084. |
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(10) Notwithstanding s. 24.115, each video lottery |
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retailer is responsible for payment of video lottery prizes. |
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(11) In any area or room in a facility in which a video |
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lottery terminal is placed, the video lottery retailer shall |
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also place video monitors displaying any live races or games of |
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that facility being conducted, or displaying available simulcast |
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races or games if no live races or games are being conducted at |
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the facility. In each area or room, the retailer shall also |
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provide a means by which patrons may wager on pari-mutuel |
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activity. |
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Section 6. Section 24.128, Florida Statutes, is created to |
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read: |
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24.128 Licensure of video lottery terminal vendors.--Video |
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lottery terminal vendors shall be licensed by the department by |
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July 1, 2003, and, by October 1, 2003, the department shall |
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adopt rules governing such licensure. The department may not |
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license any person as a video lottery terminal vendor who has an |
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interest in a video lottery retailer or a business relationship |
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with a video lottery retailer other than as a vendor or lessor |
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of video lottery terminals. |
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Section 7. Section 24.129, Florida Statutes, is created to |
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read: |
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24.129 Local zoning of pari-mutuel facilities.--The |
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installation, operation, or use of a video lottery terminal on |
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any property where pari-mutuel operations were or would have |
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been lawful under any county or municipal zoning ordinance on |
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July 1, 1997, does not change the character of the use of such |
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property and may not be prohibited by any local zoning |
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ordinance. |
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Section 8. Section 24.130, Florida Statutes, is created to |
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read: |
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24.130 Video lottery terminals.-- |
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(1) Video lottery terminals may not be offered for use or |
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play in this state unless approved by the department. |
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(2) Video lottery terminals approved for use in this state |
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shall: |
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(a) Be protected against manipulation to affect the random |
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probabilities of winning plays. |
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(b) Have one or more mechanisms that accept coins, |
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currency, tokens, or vouchers in exchange for game credits. Such |
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mechanisms must be designed to prevent players from obtaining |
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credits by means of physical tampering. |
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(c) Be capable of suspending play until reset at the |
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direction of the department as a result of physical tampering. |
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(d) Be capable of being linked to the department's central |
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computer communications system to audit the operation, financial |
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data, and program information, as required by the department. |
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Section 9. Section 24.131, Florida Statutes, is created to |
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read: |
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24.131 Video lottery terminal training program.-- |
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(1) Every licensed video lottery terminal vendor shall |
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submit a training program for the service and maintenance of |
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such terminals and equipment for approval by the department. The |
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training program must include an outline of the training |
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curriculum, a list of instructors and their qualifications, a |
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copy of the instructional materials, and the dates, times, and |
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location of training classes. A service and maintenance program |
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may not be held unless approved by the department. |
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(2) Every video lottery terminal service employee must |
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complete the requirements of the manufacturer's training program |
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before performing service, maintenance, or repairs on video |
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lottery terminals or associated equipment. Upon the successful |
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completion of the training program by an employee, the |
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department shall issue a certificate authorizing such employee |
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to service, maintain, and repair video lottery terminals and |
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associated equipment. A certificate of completion may not be |
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issued to any person until the department determines that such |
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person has completed the required training. Before being |
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certified as a video lottery terminal service employee, a person |
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must pass a background investigation conducted by the |
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department. The department may revoke certification upon finding |
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a person in violation of any provision of this chapter or a |
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department rule. |
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(3) The department may adopt rules regarding the training, |
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qualifications, and certification of video lottery terminal |
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service employees. |
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Section 10. Section 24.132, Florida Statutes, is created |
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to read: |
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24.132 Administration of the Video Lottery Purse Trust |
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Fund.-- |
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(1) Fifty-eight percent of the proceeds of the Video |
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Lottery Purse Trust Fund shall be transferred to the Video |
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Lottery Thoroughbred Trust Fund. |
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(2) Forty-two percent of the proceeds of the Video Lottery |
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Purse Trust Fund shall be distributed to pari-mutuel |
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permitholders to be distributed as purses at their respective |
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pari-mutuel facilities as follows: |
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(a) Eight percent to holders of valid harness racing |
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permits. |
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(b) Seven percent to holders of valid jai alai permits. |
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(c) Twenty-seven percent to holders of valid greyhound |
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racing permits. |
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|
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Each permitholder entitled to receive distributions shall |
406
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receive a percentage of the amount to be distributed which is |
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determined by dividing the amounts paid in purses by such |
408
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permitholder during the state fiscal year 2001-2002 by the |
409
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amount of purses paid by all permitholders of the same type |
410
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statewide during state fiscal year 2001-2002. |
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(3) All proceeds distributed under this section are in |
412
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addition to and supplement the other funds set forth in this |
413
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chapter for use as purses, awards, and, in the case of jai alai, |
414
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player compensation. |
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(4) Of amounts to be distributed pursuant to this section |
416
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and s. 24.127(7)(h) to persons holding valid greyhound racing |
417
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permits, 10 percent of such sums shall be distributed as |
418
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additional purses on all live races at each facility for |
419
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Florida-bred greyhounds in a manner similar to the distribution |
420
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of regular purses and in accordance with rules adopted by the |
421
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division. |
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(5) Of amounts to be distributed pursuant to this section |
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and s. 24.127(7)(f) to persons holding valid harness racing |
424
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permits, 6.6 percent of such sums shall be distributed for |
425
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payment of breeders' awards, stallion awards, and stallion |
426
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stakes, and for additional expenditures, including, but not |
427
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limited to, medical, dental, surgical, life, funeral, and |
428
|
disability insurance and retirement benefits for occupational |
429
|
licensees who work at tracks in this state in which harness |
430
|
horse races are conducted, pursuant to ss. 550.26165 and |
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550.2625. The Florida Standardbred Breeders and Owners |
432
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Association may, in accordance with s. 550.2625(4), deduct a fee |
433
|
for administering the payment of awards and for general |
434
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promotion of the industry. |
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(6) The department may adopt rules to provide for the |
436
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equitable distribution of funds by permitholders for purses, |
437
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awards, or jai alai player compensation. |
438
|
Section 11. Section 24.133, Florida Statutes, is created |
439
|
to read: |
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24.133 Distribution of funds from Video Lottery |
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Thoroughbred Trust Fund.--The proceeds of the Video Lottery |
442
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Thoroughbred Trust Fund shall be distributed as follows: |
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|
(1) 6.6 percent for use as Florida thoroughbred breeders' |
444
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and stallion awards pursuant to ss. 550.26165 and 550.2625, |
445
|
subject to the fee provided in s. 550.2625(3). |
446
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(2) The remainder shall be divided proportionally among |
447
|
the thoroughbred permitholders conducting live racing for use as |
448
|
purses, based upon a formula determined by dividing the amount |
449
|
paid in purses by each such thoroughbred permitholder during the |
450
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prior state fiscal year by the amount of purses paid by all such |
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thoroughbred permitholders statewide during the prior state |
452
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fiscal year. However, 8.5 percent of such funds must be used for |
453
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Florida Owners' Awards pursuant to s. 550.2625(2)(e), unless |
454
|
agreed otherwise in writing between the Florida Thoroughbred |
455
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Breeders' Association and the Florida Horsemen's Benevolent and |
456
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Protective Association, Inc., or the association representing a |
457
|
majority of the thoroughbred racehorse owners and trainers at |
458
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that location. |
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|
Section 12. Section 24.134, Florida Statutes, is created |
460
|
to read: |
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|
24.134 Notice of availability of assistance for compulsive |
462
|
gambling required.-- |
463
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(1) The owner of each facility at which video lottery |
464
|
games are conducted shall post signs with the statement "IF YOU |
465
|
OR SOMEONE YOU KNOW HAS A GAMBLING PROBLEM, HELP IS AVAILABLE. |
466
|
CALL 1-800-426-7711." Such signs must be posted within 50 feet |
467
|
of each entrance and exit and within 50 feet of each credit |
468
|
location within the facility. |
469
|
(2) Each pari-mutuel facility licensee who operates as a |
470
|
video lottery retailer shall print the statement "IF YOU OR |
471
|
SOMEONE YOU KNOW HAS A GAMBLING PROBLEM, HELP IS AVAILABLE. CALL |
472
|
1-800-426-7711" on all daily racing programs provided to the |
473
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general public. |
474
|
Section 13. Subsection (24) of section 212.02, Florida |
475
|
Statutes, is amended to read: |
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212.02 Definitions.--The following terms and phrases when |
477
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used in this chapter have the meanings ascribed to them in this |
478
|
section, except where the context clearly indicates a different |
479
|
meaning: |
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|
(24) "Coin-operated amusement machine" means any machine |
481
|
operated by coin, slug, token, coupon, or similar device for the |
482
|
purposes of entertainment or amusement. The term includes, but |
483
|
is not limited to, coin-operated pinball machines, music |
484
|
machines, juke boxes, mechanical games, video games, arcade |
485
|
games, billiard tables, moving picture viewers, shooting |
486
|
galleries, and all other similar amusement devices. However, the |
487
|
term does not include a video lottery terminal operated pursuant |
488
|
to chapter 24. |
489
|
Section 14. Compulsive gambling program.--The Alcohol, |
490
|
Drug Abuse, and Mental Health Program Office within the |
491
|
Department of Children and Family Services shall establish a |
492
|
program for public education, awareness, and training regarding |
493
|
problem and compulsive gambling and the treatment and prevention |
494
|
of problem and compulsive gambling. The program shall include: |
495
|
(1) Maintenance of a compulsive gambling advocacy |
496
|
organization's toll-free problem-gambling telephone number to |
497
|
provide crisis counseling and referral services to families |
498
|
experiencing difficulty as a result of problem or compulsive |
499
|
gambling. |
500
|
(2) The promotion of public awareness regarding the |
501
|
recognition and prevention of problem or compulsive gambling. |
502
|
(3) Facilitation, through inservice training and other |
503
|
means, of the availability of effective assistance programs for |
504
|
problem and compulsive gamblers and family members affected by |
505
|
problem and compulsive gambling. |
506
|
(4) Studies to identify adults and juveniles in this state |
507
|
who are or are at risk of becoming problem or compulsive |
508
|
gamblers. |
509
|
Section 15. This act shall take effect upon becoming a |
510
|
law. |