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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