Senate Bill sb1444

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    Florida Senate - 2004                                  SB 1444

    By Senator Bennett





    21-1020-04

  1                      A bill to be entitled

  2         An act relating to gambling; creating s.

  3         849.088, F.S.; allowing certain types of

  4         state-regulated gambling activity as an

  5         alternative to federally allowed gambling;

  6         providing for the Division of Pari-mutuel

  7         Wagering of the Department of Business and

  8         Professional Regulation to determine whether

  9         such federally allowed gambling exists in this

10         state; requiring the division to adopt rules to

11         license and regulate the state-sponsored

12         gambling; providing criteria for awarding such

13         licenses; providing for a state tax on revenues

14         from such state-regulated gambling activities;

15         providing for the Legislature to adjust the

16         rate of such a tax; providing procedures for

17         payment of the tax; providing that the tax

18         proceeds must be deposited into the State

19         School Fund and used to support public free

20         schools; providing criteria for determining the

21         percentage of gambling revenues to be allocated

22         as prize money; defining the term "net

23         revenues"; providing an effective date.

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

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27         Section 1.  Section 849.088, Florida Statutes, is

28  created to read:

29         849.088  State alternatives to federally sanctioned

30  gambling; licensure, taxation, and other regulations.--

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    Florida Senate - 2004                                  SB 1444
    21-1020-04




 1         (1)  If federal law allows gambling activity within the

 2  perimeter of the land mass of this state but outside the

 3  regulatory jurisdiction of the state, a state-regulated

 4  alternative shall be allowed within the enclosure of licensed

 5  pari-mutuel facilities in order to provide and protect state

 6  revenues and employment.

 7         (2)  The Division of Pari-mutuel Wagering of the

 8  Department of Business and Professional Regulation must

 9  determine whether such federally allowed gambling exists and

10  issue a declaratory statement pursuant to chapter 120 within

11  30 days after receiving a written request for such a statement

12  from any substantially affected person. Within 90 days after

13  such a determination has been made or the decision pursuant to

14  a final appeal from such a determination has been rendered,

15  the Division of Pari-mutuel Wagering shall adopt rules for

16  licensing and regulating the same gambling products within the

17  enclosure of state-licensed pari-mutuel facilities as are

18  determined to be present within the state under the operation

19  of federal law.

20         (3)  The Division of Pari-mutuel Wagering may issue a

21  license under this section only to a pari-mutuel permitholder

22  that applied to conduct a full schedule of live racing or

23  games as defined in s. 550.002 during the state fiscal year

24  ending June 30, 2003. After the initial license has been

25  issued to a permitholder, the permitholder must have conducted

26  a full schedule of live racing or games in the year

27  immediately preceding the issuance of a subsequent annual

28  license to that permitholder.

29         (4)  The state-regulated gambling activities authorized

30  by this section are subject to a state tax on the amount of

31  the revenues retained after the payment of winnings to the

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    Florida Senate - 2004                                  SB 1444
    21-1020-04




 1  public, which tax shall be at the rate of 25 percent for

 2  electronic gaming devices and at the same rate as the state

 3  sales tax for any other non-pari-mutuel activities. The

 4  Legislature may adjust those rates from time to time to

 5  conform to nationwide industry standards for the activity

 6  subject to tax. The revenues from taxes imposed under this

 7  section must be paid to the Division of Pari-mutuel Wagering

 8  in the same manner as pari-mutuel taxes and must be deposited

 9  in the State School Fund to be used for the support and

10  maintenance of public free schools as provided by s. 6, Art.

11  IX of the State Constitution.

12         (5)  In order to protect and support the quality of

13  racing and jai alai competition in the pari-mutuel industry in

14  this state, the same percentage of net revenues retained by a

15  permitholder from any regulated activity authorized under this

16  section shall be designated and allocated for purses and prize

17  money as was so designated and allocated by statute or

18  practice from pari-mutuel net revenues wagered on the

19  permitholder during its full schedule of live racing in the

20  year immediately preceding the effective date of this section,

21  and any changes to that allocation must be mutually agreed

22  upon by the affected parties. As used in this section, the

23  term "net revenues" means the amount of wagering revenue that

24  remains after payout to the public and the payment of state

25  taxes.

26         Section 2.  This act shall take effect October 1, 2004.

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    Florida Senate - 2004                                  SB 1444
    21-1020-04




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 2                          SENATE SUMMARY

 3    Allows the state to operate gambling activities of the
      same type that are allowed by federal law to take place
 4    in this state but outside the jurisdiction of the state.
      Provides for the Division of Pari-mutuel Wagering of the
 5    Department of Business and Professional Regulation to
      determine whether such federally allowed gambling exists
 6    in this state. Requires the division to adopt rules to
      license and regulate such state-sponsored gambling.
 7    Provides criteria for awarding such licenses. Provides
      for a state tax on revenues from such state-regulated
 8    gambling activities. Provides for the Legislature to
      adjust the rate of such a tax. Provides procedures for
 9    payment of the tax. Provides that the tax proceeds must
      be deposited into the State School Fund and used to
10    support and maintain public free schools. Provides
      criteria for determining the percentage of gambling
11    revenues to be allocated as prize money. Defines the term
      "net revenues" for purposes of making that determination.
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