Senate Bill sb2474c2

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    Florida Senate - 2004                    CS for CS for SB 2474

    By the Committees on Criminal Justice; Regulated Industries;
    and Senator Haridopolos




    307-2563-04

  1                      A bill to be entitled

  2         An act relating to legal gambling; amending s.

  3         550.002, F.S.; redefining the term "full

  4         schedule of live racing or games"; amending s.

  5         550.01215, F.S.; deleting the requirement for a

  6         thoroughbred permitholder to include on a

  7         license application the dates and periods for

  8         receiving or rebroadcasting out-of-state races

  9         or conducting performances; deleting the

10         conversion of a jai alai permit to a greyhound

11         permit; amending s. 550.054, F.S.; authorizing

12         the Division of Pari-mutuel Wagering to

13         consider an application for a permit within a

14         certain distance from an existing pari-mutuel

15         facility with the consent of all active

16         permitholders within the county in which the

17         new permit is to be located; amending s.

18         550.0951, F.S.; recognizing that pari-mutuel

19         permitholders are highly regulated and taxed

20         for the public welfare and safety; requiring

21         horserace and greyhound permitholders, but not

22         jai alai permitholders, to pay a daily license

23         fee on simulcast races; deleting the tax

24         exemption and the admission tax; revising the

25         tax on handle; requiring jai alai permitholders

26         to pay an annual license fee in lieu of other

27         fees or taxes; requiring a jai alai

28         permitholder to remit a monthly report to the

29         division; requiring a greyhound or horserace

30         permitholder to pay the difference between

31         aggregate taxes and daily license fees under

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 1         certain conditions; deleting the breaks tax

 2         regarding jai alai performances; revising the

 3         requirements for payment and disposition of

 4         fees and taxes; amending s. 550.09514, F.S.;

 5         deleting tax on handle regarding wagering on

 6         live greyhound racing; amending s. 550.2625,

 7         F.S.; requiring thoroughbred permitholders to

 8         withhold a certain amount of money from the

 9         handle under certain conditions; requiring a

10         horseracing permitholder to pay a certain sum

11         for payment of special racing awards for any

12         thoroughbred race, including receipt of a

13         broadcast of such race; amending ss. 550.26352,

14         550.2704, F.S.; conforming provisions to

15         changes made by the act; amending s. 550.3551,

16         F.S.; requiring a licensed thoroughbred

17         permitholder to consent to the receipt of

18         broadcasts of horse races conducted live at its

19         facility along with compliance with the

20         Interstate Horseracing Act of 1978; authorizing

21         a licensed thoroughbred permitholder to offer

22         wagering at its pari-mutuel facility on

23         broadcasts of horseraces conducted at other

24         horse racetracks located outside this state;

25         providing for a percentage of the handle to be

26         paid monthly on wagers of such races; requiring

27         certain thoroughbred permitholders who offer

28         wagering on certain broadcast horseraces to pay

29         a certain percentage of the net proceeds into

30         its purse account; amending s. 550.475, F.S.;

31         authorizing the operator of a licensed

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 1         racetrack to lease such track to any quarter

 2         horse racing permitholder for the conduct of

 3         quarter horse racing; amending s. 550.615,

 4         F.S.; prohibiting a harness permitholder from

 5         accepting intertrack wagers from certain other

 6         permitholders within a certain mile radius;

 7         authorizing a permitholder to engage in

 8         intertrack wagering with an affiliated licensed

 9         permitholder under common ownership; amending

10         s. 550.6305, F.S.; providing an exception where

11         certain guest tracks are entitled to a certain

12         percentage of the total contributions to the

13         pari-mutuel pool on wagers accepted; deleting

14         purse payment for a guest horserace

15         permitholder that accepts wagers during its

16         current race meet; deleting purse payments for

17         a guest thoroughbred permitholder accepting

18         intertrack wagers and its host thoroughbred

19         permitholder; revising the percentage of the

20         net proceeds for wagers on rebroadcasts of

21         out-of-state thoroughbred horse races from

22         certain in-state thoroughbred permitholder;

23         requiring licensed horserace permitholders to

24         schedule a certain number of races per racing

25         day; requiring written conditions for such

26         races; authorizing a quarter horse racing

27         permitholder to substitute other races of other

28         breeds of horses in a certain percentage of

29         races daily; permitting the racing of Arabian

30         horses exclusively in an additional race per

31         racing day; authorizing certain owners of a

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 1         quarter horse permit to convert it to one for

 2         the conduct of thoroughbred racing under

 3         certain conditions; creating s. 550.09516,

 4         F.S.; providing legislative findings; providing

 5         an annual fee for a dormant permit; providing

 6         for revocation of a permit; repealing s.

 7         550.0745, F.S., relating to the conversion of a

 8         pari-mutuel permit to a summer jai alai permit;

 9         repealing s. 550.09511,F.S., relating to taxes

10         on wagering on live jai alai performances;

11         repealing s. 550.09512, relating to tax on

12         handle for live harness horse performances;

13         repealing s. 550.09515, F.S., relating to the

14         tax on handle for live thoroughbred horserace

15         performances; repealing s. 550.1625, F.S.,

16         relating to the payment of certain taxes and

17         the daily license fee for dogracing; repealing

18         s. 550.3355, F.S., relating to harness track

19         licenses for summer quarter horse racing;

20         repealing s. 550.334, F.S., relating to

21         requirements for obtaining a permit to conduct

22         quarter horse racing and authorization of a

23         permitholder to substitute other races of other

24         breeds of horses; repealing s. 550.375, F.S.,

25         relating to the operation of certain harness

26         tracks; repealing s. 550.5251, F.S., relating

27         to Florida thoroughbred racing; repealing s.

28         550.71, F.S., relating to the nonseverability

29         of chapter 96-364, Laws of Florida, regarding

30         pari-mutuel wagering; excusing certain

31         thoroughbred permitholders who failed to

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 1         operate all performances during certain time

 2         periods from discipline; amending s. 849.161,

 3         F.S.; excluding certain amusement games or

 4         machines from application of ch. 849, F.S.;

 5         providing requirements for an application for a

 6         license to operate an arcade amusement center;

 7         prohibiting gambling devices from arcade

 8         amusement centers; creating s. 849.1615, F.S.;

 9         providing an exception for amusement games or

10         machines located at truck stops; amending s.

11         849.085, F.S.; exempting the conduct of

12         penny-ante games in described facilities from a

13         prohibition against soliciting participants

14         through advertising; providing an effective

15         date.

16  

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

18  

19         Section 1.  Subsection (11) of section 550.002, Florida

20  Statutes, is amended to read:

21         550.002  Definitions.--As used in this chapter, the

22  term:

23         (11)  "Full schedule of live racing or games" means,

24  for a greyhound or harness jai alai permitholder, the conduct

25  of a combination of at least 100 live evening or matinee

26  performances during the preceding year; for a permitholder who

27  has a converted permit or filed an application on or before

28  June 1, 1990, for a converted permit, the conduct of a

29  combination of at least 100 live evening and matinee wagering

30  performances during either of the 2 preceding years; for a

31  harness permitholder, the conduct of at least 100 live regular

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 1  wagering performances during the preceding year; for a quarter

 2  or thoroughbred horserace horse permitholder or a jai alai

 3  permitholder, the terms mean the conduct of at least 40 live

 4  regular wagering performances during the preceding year; and

 5  for a thoroughbred permitholder, the conduct of at least 40

 6  live regular wagering performances during the preceding year.

 7  For a permitholder which is restricted by statute to certain

 8  operating periods within the year when other members of its

 9  same class of permit are authorized to operate throughout the

10  year, the specified number of live performances which

11  constitute a full schedule of live racing or games shall be

12  adjusted pro rata in accordance with the relationship between

13  its authorized operating period and the full calendar year and

14  the resulting specified number of live performances shall

15  constitute the full schedule of live games for such

16  permitholder and all other permitholders of the same class

17  within 100 air miles of such permitholder. A live performance

18  must consist of no fewer than eight races or games conducted

19  live for each of a minimum of three performances each week at

20  the permitholder's licensed facility under a single admission

21  charge.

22         Section 2.  Subsections (1), (3), and (6) of section

23  550.01215, Florida Statutes, are amended to read:

24         550.01215  License application; periods of operation;

25  bond, conversion of permit.--

26         (1)  Each permitholder shall annually, during the

27  period between December 15 and January 4, file in writing with

28  the division its application for a license to conduct

29  performances during the next state fiscal year.  Each

30  application shall specify the number, dates, and starting

31  times of all performances which the permitholder intends to

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 1  conduct.  It shall also specify which performances will be

 2  conducted as charity or scholarship performances. In addition,

 3  each application for a license shall include, for each

 4  permitholder that which elects to operate a cardroom, the

 5  dates and periods of operation the permitholder intends to

 6  operate the cardroom or, for each thoroughbred permitholder

 7  which elects to receive or rebroadcast out-of-state races

 8  after 7 p.m., the dates for all performances which the

 9  permitholder intends to conduct. Permitholders shall be

10  entitled to amend their applications through February 28.

11         (3)  Except as provided in s. 550.5251 for thoroughbred

12  racing, The division shall issue each license no later than

13  March 15. Each permitholder shall operate all performances at

14  the date and time specified on its license.  The division

15  shall have the authority to approve minor changes in racing

16  dates after a license has been issued.  The division may

17  approve changes in racing dates after a license has been

18  issued when there is no objection from any operating

19  permitholder located within 50 miles of the permitholder

20  requesting the changes in operating dates.  In the event of an

21  objection, the division shall approve or disapprove the change

22  in operating dates based upon the impact on operating

23  permitholders located within 50 miles of the permitholder

24  requesting the change in operating dates. In making the

25  determination to change racing dates, the division shall take

26  into consideration the impact of such changes on state

27  revenues.

28         (6)  Any permit which was converted from a jai alai

29  permit to a greyhound permit may be converted to a jai alai

30  permit at any time if the permitholder never conducted

31  

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 1  greyhound racing or if the permitholder has not conducted

 2  greyhound racing for a period of 12 consecutive months.

 3         Section 3.  Subsection (2) of section 550.054, Florida

 4  Statutes, is amended to read:

 5         550.054  Application for permit to conduct pari-mutuel

 6  wagering.--

 7         (2)  Upon each application filed and approved, a permit

 8  shall be issued to the applicant setting forth the name of the

 9  permitholder, the location of the pari-mutuel facility, the

10  type of pari-mutuel activity desired to be conducted, and a

11  statement showing qualifications of the applicant to conduct

12  pari-mutuel performances under this chapter; however, a permit

13  is ineffectual to authorize any pari-mutuel performances until

14  approved by a majority of the electors participating in a

15  ratification election in the county in which the applicant

16  proposes to conduct pari-mutuel wagering activities.  In

17  addition, an application may not be considered, nor may a

18  permit be issued by the division or be voted upon in any

19  county, to conduct horseraces, harness horse races, or

20  dograces at a location within 100 miles of an existing

21  pari-mutuel facility, or for jai alai within 50 miles of an

22  existing pari-mutuel facility, unless all active permitholders

23  within the county in which the new permit is to be located

24  agree to issuance of the new permit; this distance shall be

25  measured on a straight line from the nearest property line of

26  one pari-mutuel facility to the nearest property line of the

27  other facility.

28         Section 4.  Section 550.0951, Florida Statutes, is

29  amended to read:

30         550.0951  Payment of daily license fee and taxes;

31  penalties.--Pari-mutuel wagering at horsetracks, dog

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 1  racetracks, and jai alai frontons in this state is an

 2  important business enterprise, and taxes derived therefrom

 3  constitute a part of the tax structure that funds operation of

 4  the state. Horserace, greyhound, and jai alai permitholders

 5  should pay their fair share of these taxes to the state. This

 6  business interest should not be taxed to such an extent as to

 7  cause any permitholder that is operated under sound business

 8  principles to be forced out of business. Due to the need to

 9  protect the public health, safety, and welfare, the gaming

10  laws of the state provide for pari-mutuel permitholders to be

11  highly regulated and taxed. The state recognizes that there

12  exist identifiable differences between horserace

13  permitholders, greyhound permitholders, and jai alai

14  permitholders based upon their ability to operate under such

15  regulation and tax system.

16         (1)(a)  DAILY LICENSE FEE.--Each horserace or greyhound

17  permitholder person engaged in the business of conducting race

18  meetings or jai alai games under this chapter, hereinafter

19  referred to as the "permitholder," "licensee," or "permittee,"

20  shall pay to the division, for the use of the division, a

21  daily license fee on each live or simulcast pari-mutuel event

22  of $100 for each horserace and $80 for each dograce and $40

23  for each jai alai game conducted at a racetrack or fronton

24  licensed under this chapter. In addition to the tax exemption

25  specified in s. 550.09514(1) of $360,000 or $500,000 per

26  greyhound permitholder per state fiscal year, each greyhound

27  permitholder shall receive in the current state fiscal year a

28  tax credit equal to the number of live greyhound races

29  conducted in the previous state fiscal year times the daily

30  license fee specified for each dograce in this subsection

31  applicable for the previous state fiscal year.  This tax

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 1  credit and the exemption in s. 550.09514(1) shall be

 2  applicable to any tax imposed by this chapter or the daily

 3  license fees imposed by this chapter except during any charity

 4  or scholarship performances conducted pursuant to s. 550.0351.

 5  Each permitholder shall pay daily license fees not to exceed

 6  $500 per day on any simulcast races or games on which such

 7  permitholder accepts wagers regardless of the number of

 8  out-of-state events taken or the number of out-of-state

 9  locations from which such events are taken. This license fee

10  shall be deposited with the Chief Financial Officer to the

11  credit of the Pari-mutuel Wagering Trust Fund.

12         (b)  Each permitholder that cannot utilize the full

13  amount of the exemption of $360,000 or $500,000 provided in s.

14  550.09514(1) or the daily license fee credit provided in this

15  section may, after notifying the division in writing, elect

16  once per state fiscal year on a form provided by the division

17  to transfer such exemption or credit or any portion thereof to

18  any greyhound permitholder which acts as a host track to such

19  permitholder for the purpose of intertrack wagering. Once an

20  election to transfer such exemption or credit is filed with

21  the division, it shall not be rescinded. The division shall

22  disapprove the transfer when the amount of the exemption or

23  credit or portion thereof is unavailable to the transferring

24  permitholder or when the permitholder who is entitled to

25  transfer the exemption or credit or who is entitled to receive

26  the exemption or credit owes taxes to the state pursuant to a

27  deficiency letter or administrative complaint issued by the

28  division. Upon approval of the transfer by the division, the

29  transferred tax exemption or credit shall be effective for the

30  first performance of the next biweekly pay period as specified

31  in subsection (5). The exemption or credit transferred to such

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 1  host track may be applied by such host track against any taxes

 2  imposed by this chapter or daily license fees imposed by this

 3  chapter. The greyhound permitholder host track to which such

 4  exemption or credit is transferred shall reimburse such

 5  permitholder the exact monetary value of such transferred

 6  exemption or credit as actually applied against the taxes and

 7  daily license fees of the host track. The division shall

 8  ensure that all transfers of exemption or credit are made in

 9  accordance with this subsection and shall have the authority

10  to adopt rules to ensure the implementation of this section.

11         (2)  ADMISSION TAX.--

12         (a)  An admission tax equal to 15 percent of the

13  admission charge for entrance to the permitholder's facility

14  and grandstand area, or 10 cents, whichever is greater, is

15  imposed on each person attending a horserace, dograce, or jai

16  alai game.  The permitholder shall be responsible for

17  collecting the admission tax.

18         (b)  No admission tax under this chapter or chapter 212

19  shall be imposed on any free passes or complimentary cards

20  issued to persons for which there is no cost to the person for

21  admission to pari-mutuel events.

22         (c)  A permitholder may issue tax-free passes to its

23  officers, officials, and employees or other persons actually

24  engaged in working at the racetrack, including accredited

25  press representatives such as reporters and editors, and may

26  also issue tax-free passes to other permitholders for the use

27  of their officers and officials.  The permitholder shall file

28  with the division a list of all persons to whom tax-free

29  passes are issued under this paragraph.

30         (2)(3)  TAX ON HANDLE.--Each permitholder shall pay a

31  tax on contributions to pari-mutuel pools, the aggregate of

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 1  which is hereinafter referred to as "handle," on races or

 2  games conducted by the permitholder. The tax is imposed daily

 3  and is based on the total contributions to all pari-mutuel

 4  pools conducted during the daily performance.  If a

 5  permitholder conducts more than one performance daily, the tax

 6  is imposed on each performance separately.

 7         (a)  The tax on handle for quarter horse racing is 0.5

 8  1.0 percent of the handle.

 9         (b)1.  The tax on handle for dogracing is 1.5 5.5

10  percent of the handle, except that for live charity

11  performances held pursuant to s. 550.0351, and for intertrack

12  wagering on such charity performances at a guest greyhound

13  track within the market area of the host, the tax is 7.6

14  percent of the handle.

15         2.  The tax on handle for jai alai is 7.1 percent of

16  the handle.

17         (c)1.  The tax on handle for intertrack wagering is 2.0

18  percent of the handle if the host track is a horse track, 3.3

19  percent if the host track is a harness track, and 3.5 5.5

20  percent if the host track is a dog track, and 7.1 percent if

21  the host track is a jai alai fronton.

22         2.  The tax on handle for intertrack wagering is 0.5

23  percent of the handle if the host track and the guest track

24  are thoroughbred permitholders or if the guest track is

25  located outside the market area of the host track and  within

26  the market area of a thoroughbred permitholder currently

27  conducting a live race meet.

28         3.  The tax on handle for intertrack wagering is 1.5

29  percent of the handle if the guest track is located within the

30  market area of the host dog track.

31  

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 1         (d)1.  The tax on handle for intertrack wagering on

 2  rebroadcasts of simulcast thoroughbred horseraces is 2.4

 3  percent of the handle. For permitholders located as specified

 4  in s. 550.615(2) and conducting intertrack wagering on

 5  rebroadcasts of simulcast thoroughbred horseraces, the tax on

 6  handle is 1.0 percent of the handle, and the host thoroughbred

 7  permitholder shall retain 1.4 percent of the handle to be used

 8  for purses.

 9         2.  The tax on and 1.5 percent of the handle for

10  intertrack wagering on rebroadcasts of simulcast harness

11  horseraces is 1.5 percent of the handle. The tax shall be

12  deposited into the Pari-mutuel Wagering Trust Fund.

13         2.  The tax on handle for intertrack wagers accepted by

14  any dog track located in an area of the state in which there

15  are only three permitholders, all of which are greyhound

16  permitholders, located in three contiguous counties, from any

17  greyhound permitholder also located within such area or any

18  dog track or jai alai fronton located as specified in s.

19  550.615(6) or (9), on races or games received from the same

20  class of permitholder located within the same market area is

21  3.9 percent if the host facility is a greyhound permitholder

22  and, if the host facility is a jai alai permitholder, the rate

23  shall be 6.1 percent except that it shall be 2.3 percent on

24  handle at such time as the total tax on intertrack handle paid

25  to the division by the permitholder during the current state

26  fiscal year exceeds the total tax on intertrack handle paid to

27  the division by the permitholder during the 1992-1993 state

28  fiscal year.

29         (e)(d)  Notwithstanding any other provision of this

30  chapter, in order to protect the Florida jai alai industry,

31  

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 1  effective July 1, 2000, a jai alai permitholder may not be

 2  taxed on live handle at a rate higher than 2 percent.

 3         (3)  JAI ALAI ANNUAL LICENSE FEE.--A licensed jai alai

 4  permitholder may not be liable for any other fees or taxes

 5  imposed by this chapter for the conduct of pari-mutuel

 6  wagering and shall instead pay an annual license fee of

 7  $350,000 for the privilege of holding and operating a permit

 8  to conduct pari-mutuel wagering authorized under this chapter.

 9  Such fee shall be payable within 5 days after the commencement

10  of the jai alai permitholder's live meet. A jai alai

11  permitholder may use any credits accrued under s. 550.1646 and

12  any unused tax credits from the operation of s. 550.09511 as

13  an offset to the annual license fee; however, a jai alai

14  permitholder conducting fewer than 100 live performances in

15  any calendar year may not use these credits to pay to the

16  state less than the aggregate amount of pari-mutuel taxes and

17  fees which the permitholder paid to the state during the most

18  recent prior calendar year in which the jai alai permitholder

19  conducted at least 100 live performances. A jai alai

20  permitholder shall remit monthly a report under oath to the

21  division showing the total of the pari-mutuel wagering

22  activities for the preceding month and such other information

23  as is prescribed by the division.

24         (4)  MINIMUM PAYMENTS FOR GREYHOUND AND

25  HORSETRACKS.--In the event a greyhound or horserace

26  permitholder at the conclusion of its racing meet has not paid

27  over the preceding 12 months at least $350,000 in the

28  aggregate of daily license fees and tax on handle, such

29  permitholder shall pay to the division the difference between

30  the aggregate taxes and daily license fees paid and $350,000.

31  Such payment shall be made within 30 days after the conclusion

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 1  of the permitholder's live racing meet. In determining the

 2  total tax on handle for this subsection, the division shall

 3  credit taxes paid by greyhound host tracks and generated from

 4  intertrack wagering between greyhound permitholders as if the

 5  taxes on such intertrack wagering were paid by the guest

 6  track.

 7         (4)  BREAKS TAX.--Effective October 1, 1996, each

 8  permitholder conducting jai alai performances shall pay a tax

 9  equal to the breaks.  The "breaks" represents that portion of

10  each pari-mutuel pool which is not redistributed to the

11  contributors or withheld by the permitholder as commission.

12         (5)  PAYMENT AND DISPOSITION OF FEES AND

13  TAXES.--Payment for the admission tax, tax on handle, and the

14  breaks tax imposed by this section shall be paid to the

15  division. The division shall deposit these sums with the Chief

16  Financial Officer, to the credit of the Pari-mutuel Wagering

17  Trust Fund, hereby established. The permitholder shall remit

18  to the division payment for the daily license fee, the

19  admission tax, the tax on handle, and the breaks tax. Such

20  Payments of the daily license fees and taxes on handle shall

21  be remitted to the division by 3 p.m. of the 5th day Wednesday

22  of each calendar month week for taxes and fees imposed and

23  collected for the preceding calendar month week ending on

24  Sunday. Permitholders shall file a report under oath by the

25  5th day of each calendar month for all taxes remitted during

26  the preceding calendar month. Such payments shall be

27  accompanied by a report under oath showing the total of all

28  taxes remitted admissions, the pari-mutuel wagering activities

29  for the preceding calendar month, and such other information

30  as may be prescribed by the division.

31         (6)  PENALTIES.--

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 1         (a)  The failure of any permitholder to make payments

 2  as prescribed in subsection (5) is a violation of this

 3  section, and the permitholder may be subjected by the division

 4  to a civil penalty of up to $1,000 for each day the tax

 5  payment is not remitted.  All penalties imposed and collected

 6  shall be deposited in the General Revenue Fund.  If a

 7  permitholder fails to pay penalties imposed by order of the

 8  division under this subsection, the division may suspend or

 9  revoke the license of the permitholder, cancel the permit of

10  the permitholder, or deny issuance of any further license or

11  permit to the permitholder.

12         (b)  In addition to the civil penalty prescribed in

13  paragraph (a), any willful or wanton failure by any

14  permitholder to make payments under this section of the daily

15  license fee, admission tax, tax on handle, or breaks tax

16  constitutes sufficient grounds for the division to suspend or

17  revoke the license of the permitholder, to cancel the permit

18  of the permitholder, or to deny issuance of any further

19  license or permit to the permitholder.

20         Section 5.  Section 550.09514, Florida Statutes, is

21  amended to read:

22         550.09514  Greyhound dogracing taxes; purse

23  requirements.--

24         (1)  Wagering on greyhound racing is subject to a tax

25  on handle for live greyhound racing as specified in s.

26  550.0951(3). However, each permitholder shall pay no tax on

27  handle until such time as this subsection has resulted in a

28  tax savings per state fiscal year of $360,000. Thereafter,

29  each permitholder shall pay the tax as specified in s.

30  550.0951(3) on all handle for the remainder of the

31  permitholder's current race meet, and the tax must be

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 1  calculated and commence beginning the day after the biweekly

 2  period in which the permitholder reaches the maximum tax

 3  savings per state fiscal year provided in this section.  For

 4  the three permitholders that conducted a full schedule of live

 5  racing in 1995, and are closest to another state that

 6  authorizes greyhound pari-mutuel wagering, the maximum tax

 7  savings per state fiscal year shall be $500,000.  The

 8  provisions of this subsection relating to tax exemptions shall

 9  not apply to any charity or scholarship performances conducted

10  pursuant to s. 550.0351.

11         (1)(2)(a)  The division shall determine for each

12  greyhound permitholder the annual purse percentage rate of

13  live handle for the state fiscal year 1993-1994 by dividing

14  total purses paid on live handle by the permitholder,

15  exclusive of payments made from outside sources, during the

16  1993-1994 state fiscal year by the permitholder's live handle

17  for the 1993-1994 state fiscal year. Each permitholder shall

18  pay as purses for live races conducted during its current race

19  meet a percentage of its live handle not less than the

20  percentage determined under this paragraph, exclusive of

21  payments made by outside sources, for its 1993-1994 state

22  fiscal year.

23         (b)  Except as otherwise set forth herein, in addition

24  to the minimum purse percentage required by paragraph (a),

25  each permitholder shall pay as purses an annual amount equal

26  to 75 percent of the daily license fees paid by each

27  permitholder for the 1994-1995 fiscal year. This purse

28  supplement shall be disbursed weekly during the permitholder's

29  race meet in an amount determined by dividing the annual purse

30  supplement by the number of performances approved for the

31  permitholder pursuant to its annual license and multiplying

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 1  that amount by the number of performances conducted each week.

 2  For the greyhound permitholders in the county where there are

 3  two greyhound permitholders located as specified in s.

 4  550.615(6), such permitholders shall pay in the aggregate an

 5  amount equal to 75 percent of the daily license fees paid by

 6  such permitholders for the 1994-1995 fiscal year. These

 7  permitholders shall be jointly and severally liable for such

 8  purse payments. The additional purses provided by this

 9  paragraph must be used exclusively for purses other than

10  stakes.  The division shall conduct audits necessary to ensure

11  compliance with this section.

12         (c)1.  Each greyhound permitholder when conducting at

13  least three live performances during any week shall pay purses

14  in that week on wagers it accepts as a guest track on

15  intertrack and simulcast greyhound races at the same rate as

16  it pays on live races. Each greyhound permitholder when

17  conducting at least three live performances during any week

18  shall pay purses in that week, at the same rate as it pays on

19  live races, on wagers accepted on greyhound races at a guest

20  track which is not conducting live racing and is located

21  within the same market area as the greyhound permitholder

22  conducting at least three live performances during any week.

23         2.  Each host greyhound permitholder shall pay purses

24  on its simulcast and intertrack broadcasts of greyhound races

25  to guest facilities that are located outside its market area

26  in an amount equal to one quarter of an amount determined by

27  subtracting the transmission costs of sending the simulcast or

28  intertrack broadcasts from an amount determined by adding the

29  fees received for greyhound simulcast races plus 3 percent of

30  the greyhound intertrack handle at guest facilities that are

31  located outside the market area of the host and that paid

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 1  contractual fees to the host for such broadcasts of greyhound

 2  races.

 3         (d)  The division shall require sufficient

 4  documentation from each greyhound permitholder regarding

 5  purses paid on live racing to assure that the annual purse

 6  percentage rates paid by each permitholder on the live races

 7  are not reduced below those paid during the 1993-1994 state

 8  fiscal year. The division shall require sufficient

 9  documentation from each greyhound permitholder to assure that

10  the purses paid by each permitholder on the greyhound

11  intertrack and simulcast broadcasts are in compliance with the

12  requirements of paragraph (c).

13         (e)  In addition to the purse requirements of

14  paragraphs (a)-(c), each greyhound permitholder shall pay as

15  purses an amount equal to one-third of the amount of the tax

16  reduction on live and simulcast handle applicable to such

17  permitholder as a result of the reductions in tax rates

18  provided by this act through the amendments to s. 550.0951(3)

19  effective July 1, 2000. With respect to intertrack wagering

20  when the host and guest tracks are greyhound permitholders not

21  within the same market area, an amount equal to the tax

22  reduction applicable to the guest track handle as a result of

23  the reduction in tax rate provided by this act through the

24  amendment to s. 550.0951(3) effective July 1, 2000, shall be

25  distributed to the guest track, one-third of which amount

26  shall be paid as purses at the guest track. However, if the

27  guest track is a greyhound permitholder within the market area

28  of the host or if the guest track is not a greyhound

29  permitholder, an amount equal to such tax reduction applicable

30  to the guest track handle shall be retained by the host track,

31  one-third of which amount shall be paid as purses at the host

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 1  track. These purse funds shall be disbursed in the week

 2  received if the permitholder conducts at least one live

 3  performance during that week. If the permitholder does not

 4  conduct at least one live performance during the week in which

 5  the purse funds are received, the purse funds shall be

 6  disbursed weekly during the permitholder's next race meet in

 7  an amount determined by dividing the purse amount by the

 8  number of performances approved for the permitholder pursuant

 9  to its annual license, and multiplying that amount by the

10  number of performances conducted each week. The division shall

11  conduct audits necessary to ensure compliance with this

12  paragraph.

13         (f)  Each greyhound permitholder shall, during the

14  permitholder's race meet, supply kennel operators and the

15  Division of Pari-Mutuel Wagering with a weekly report showing

16  purses paid on live greyhound races and all greyhound

17  intertrack and simulcast broadcasts, including both as a guest

18  and a host together with the handle or commission calculations

19  on which such purses were paid and the transmission costs of

20  sending the simulcast or intertrack broadcasts, so that the

21  kennel operators may determine statutory and contractual

22  compliance.

23         (g)  Each greyhound permitholder shall make direct

24  payment of purses to the greyhound owners who have filed with

25  such permitholder appropriate federal taxpayer identification

26  information based on the percentage amount agreed upon between

27  the kennel operator and the greyhound owner.

28         (h)  At the request of a majority of kennel operators

29  under contract with a greyhound permitholder, the permitholder

30  shall make deductions from purses paid to each kennel operator

31  electing such deduction and shall make a direct payment of

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 1  such deductions to the local association of greyhound kennel

 2  operators formed by a majority of kennel operators under

 3  contract with the permitholder. The amount of the deduction

 4  shall be at least 1 percent of purses, as determined by the

 5  local association of greyhound kennel operators. No deductions

 6  may be taken pursuant to this paragraph without a kennel

 7  operator's specific approval before or after the effective

 8  date of this act.

 9         (2)(3)  For the purpose of this section, the term "live

10  handle" means the handle from wagers placed at the

11  permitholder's establishment on the live greyhound races

12  conducted at the permitholder's establishment.

13         Section 6.  Effective 3 years after the effective date

14  of this act, subsections (2) and (3) of section 550.2625,

15  Florida Statutes, are amended to read:

16         550.2625  Horseracing; minimum purse requirement,

17  Florida breeders' and owners' awards.--

18         (2)  Each permitholder conducting a horserace meet is

19  required to pay from the takeout withheld on pari-mutuel pools

20  a sum for purses in accordance with the type of race

21  performed.

22         (a)  A permitholder conducting a thoroughbred horse

23  race meet under this chapter must pay from the takeout

24  withheld a sum not less than 7.75 percent of all contributions

25  to pari-mutuel pools conducted during the race meet as purses.

26  In addition to the 7.75 percent minimum purse payment,

27  permitholders conducting live thoroughbred performances shall

28  be required to pay as additional purses .625 percent of live

29  handle for performances conducted during the period beginning

30  on January 3 and ending March 16; .225 percent for

31  performances conducted during the period beginning March 17

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 1  and ending May 22; and .85 percent for performances conducted

 2  during the period beginning May 23 and ending January 2.

 3  Except that any thoroughbred permitholder whose total handle

 4  on live performances during the 1991-1992 state fiscal year

 5  was not greater than $34 million is not subject to this

 6  additional purse payment. A permitholder authorized to conduct

 7  thoroughbred racing shall may withhold from the handle an

 8  additional amount equal to 1 percent on exotic wagering for

 9  use as owners' awards, and shall may withhold from the handle

10  an amount equal to 2 percent on exotic wagering for use as

11  overnight purses. No permitholder may withhold in excess of 20

12  percent from the handle without withholding the amounts set

13  forth in this subsection.

14         (b)1.  A permitholder conducting a harness horse race

15  meet under this chapter must pay to the purse pool from the

16  takeout withheld a purse requirement that totals an amount not

17  less than 8.25 percent of all contributions to pari-mutuel

18  pools conducted during the race meet.  An amount not less than

19  7.75 percent of the total handle shall be paid from this purse

20  pool as purses.

21         2.  An amount not to exceed 0.5 percent of the total

22  handle on all harness horse races that are subject to the

23  purse requirement of subparagraph 1., must be available for

24  use to provide medical, dental, surgical, life, funeral, or

25  disability insurance benefits for occupational licensees who

26  work at tracks in this state at which harness horse races are

27  conducted.  Such insurance benefits must be paid from the

28  purse pool specified in subparagraph 1.  An annual plan for

29  payment of insurance benefits from the purse pool, including

30  qualifications for eligibility, must be submitted by the

31  Florida Standardbred Breeders and Owners Association for

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 1  approval to the division.  An annual report of the implemented

 2  plan shall be submitted to the division.  All records of the

 3  Florida Standardbred Breeders and Owners Association

 4  concerning the administration of the plan must be available

 5  for audit at the discretion of the division to determine that

 6  the plan has been implemented and administered as authorized.

 7  If the division finds that the Florida Standardbred Breeders

 8  and Owners Association has not complied with the provisions of

 9  this section, the division may order the association to cease

10  and desist from administering the plan and shall appoint the

11  division as temporary administrator of the plan until the

12  division reestablishes administration of the plan with the

13  association.

14         (c)  A permitholder conducting a quarter horse race

15  meet under this chapter shall pay from the takeout withheld a

16  sum not less than 6 percent of all contributions to

17  pari-mutuel pools conducted during the race meet as purses.

18         (d)  The division shall adopt reasonable rules to

19  ensure the timely and accurate payment of all amounts withheld

20  by horserace permitholders regarding the distribution of

21  purses, owners' awards, and other amounts collected for

22  payment to owners and breeders.  Each permitholder that fails

23  to pay out all moneys collected for payment to owners and

24  breeders shall, within 10 days after the end of the meet

25  during which the permitholder underpaid purses, deposit an

26  amount equal to the underpayment into a separate

27  interest-bearing account to be distributed to owners and

28  breeders in accordance with division rules.

29         (e)  An amount equal to 8.5 percent of the purse

30  account generated through intertrack wagering and interstate

31  simulcasting will be used for Florida Owners' Awards as set

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 1  forth in subsection (3).  Any thoroughbred permitholder with

 2  an average blended takeout which does not exceed 20 percent

 3  and with an average daily purse distribution excluding

 4  sponsorship, entry fees, and nominations exceeding $225,000 is

 5  exempt from the provisions of this paragraph.

 6         (3)  Each horseracing permitholder conducting any

 7  thoroughbred race under this chapter, including via receipt of

 8  a broadcast any intertrack race taken pursuant to s. 550.3551

 9  or ss. 550.615-550.6305 or any interstate simulcast taken

10  pursuant to s. 550.3551(3) shall pay a sum equal to 0.955

11  percent on all pari-mutuel pools conducted during any such

12  race for the payment of breeders', stallion, or special racing

13  awards as authorized in this chapter. This subsection also

14  applies to all Breeder's Cup races conducted outside this

15  state taken pursuant to s. 550.3551(3). On any race

16  originating live in this state which is broadcast out-of-state

17  to any location at which wagers are accepted pursuant to s.

18  550.3551(2), the host track is required to pay 3.475 percent

19  of the gross revenue derived from such out-of-state broadcasts

20  as breeders', stallion, or special racing awards. The Florida

21  Thoroughbred Breeders' Association is authorized to receive

22  these payments from the permitholders and make payments of

23  awards earned. The Florida Thoroughbred Breeders' Association

24  has the right to withhold up to 10 percent of the

25  permitholder's payments under this section as a fee for

26  administering the payments of awards and for general promotion

27  of the industry. The permitholder shall remit these payments

28  to the Florida Thoroughbred Breeders' Association by the 5th

29  day of each calendar month for such sums accruing during the

30  preceding calendar month and shall report such payments to the

31  division as prescribed by the division. With the exception of

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 1  the 10-percent fee, the moneys paid by the permitholders shall

 2  be maintained in a separate, interest-bearing account, and

 3  such payments together with any interest earned shall be used

 4  exclusively for the payment of breeders', stallion, or special

 5  racing awards in accordance with the following provisions:

 6         (a)  The breeder of each Florida-bred thoroughbred

 7  horse winning a thoroughbred horse race is entitled to an

 8  award of up to, but not exceeding, 20 percent of the announced

 9  gross purse, including nomination fees, eligibility fees,

10  starting fees, supplementary fees, and moneys added by the

11  sponsor of the race.

12         (b)  The owner or owners of the sire of a Florida-bred

13  thoroughbred horse that wins a stakes race is entitled to a

14  stallion award of up to, but not exceeding, 20 percent of the

15  announced gross purse, including nomination fees, eligibility

16  fees, starting fees, supplementary fees, and moneys added by

17  the sponsor of the race.

18         (c)  The owners of thoroughbred horses participating in

19  thoroughbred stakes races, nonstakes races, or both may

20  receive a special racing award in accordance with the

21  agreement established pursuant to s. 550.26165(1).

22         (d)  In order for a breeder of a Florida-bred

23  thoroughbred horse to be eligible to receive a breeder's

24  award, the horse must have been registered as a Florida-bred

25  horse with the Florida Thoroughbred Breeders' Association, and

26  the Jockey Club certificate for the horse must show that it

27  has been duly registered as a Florida-bred horse as evidenced

28  by the seal and proper serial number of the Florida

29  Thoroughbred Breeders' Association registry. The Florida

30  Thoroughbred Breeders' Association shall be permitted to

31  

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 1  charge the registrant a reasonable fee for this verification

 2  and registration.

 3         (e)  In order for an owner of the sire of a

 4  thoroughbred horse winning a stakes race to be eligible to

 5  receive a stallion award, the stallion must have been

 6  registered with the Florida Thoroughbred Breeders'

 7  Association, and the breeding of the registered Florida-bred

 8  horse must have occurred in this state. The stallion must be

 9  standing permanently in this state during the period of time

10  between February 1 and June 15 of each year or, if the

11  stallion is dead, must have stood permanently in this state

12  for a period of not less than 1 year immediately prior to its

13  death. The removal of a stallion from this state during the

14  period of time between February 1 and June 15 of any year for

15  any reason, other than exclusively for prescribed medical

16  treatment, as approved by the Florida Thoroughbred Breeders'

17  Association, renders the owner or owners of the stallion

18  ineligible to receive a stallion award under any circumstances

19  for offspring sired prior to removal; however, if a removed

20  stallion is returned to this state, all offspring sired

21  subsequent to the return make the owner or owners of the

22  stallion eligible for the stallion award but only for those

23  offspring sired subsequent to such return to this state. The

24  Florida Thoroughbred Breeders' Association shall maintain

25  complete records showing the date the stallion arrived in this

26  state for the first time, whether or not the stallion remained

27  in the state permanently, the location of the stallion, and

28  whether the stallion is still standing in this state and

29  complete records showing awards earned, received, and

30  distributed. The association may charge the owner, owners, or

31  breeder a reasonable fee for this service.

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 1         (f)  A permitholder conducting a thoroughbred horse

 2  race under the provisions of this chapter shall, within 30

 3  days after the end of the race meet during which the race is

 4  conducted, certify to the Florida Thoroughbred Breeders'

 5  Association such information relating to the thoroughbred

 6  horses winning a stakes or other horserace at the meet as may

 7  be required to determine the eligibility for payment of

 8  breeders', stallion, and special racing awards.

 9         (g)  The Florida Thoroughbred Breeders' Association

10  shall maintain complete records showing the starters and

11  winners in all races conducted at thoroughbred tracks in this

12  state; shall maintain complete records showing awards earned,

13  received, and distributed; and may charge the owner, owners,

14  or breeder a reasonable fee for this service.

15         (h)  The Florida Thoroughbred Breeders' Association

16  shall annually establish a uniform rate and procedure for the

17  payment of breeders' and stallion awards and shall make

18  breeders' and stallion award payments in strict compliance

19  with the established uniform rate and procedure plan. The plan

20  may set a cap on winnings and may limit, exclude, or defer

21  payments to certain classes of races, such as the Florida

22  stallion stakes races, in order to assure that there are

23  adequate revenues to meet the proposed uniform rate. Such plan

24  must include proposals for the general promotion of the

25  industry. Priority shall be placed upon imposing such

26  restrictions in lieu of allowing the uniform rate to be less

27  than 15 percent of the total purse payment. The uniform rate

28  and procedure plan must be approved by the division before

29  implementation. In the absence of an approved plan and

30  procedure, the authorized rate for breeders' and stallion

31  awards is 15 percent of the announced gross purse for each

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 1  race. Such purse must include nomination fees, eligibility

 2  fees, starting fees, supplementary fees, and moneys added by

 3  the sponsor of the race. If the funds in the account for

 4  payment of breeders' and stallion awards are not sufficient to

 5  meet all earned breeders' and stallion awards, those breeders

 6  and stallion owners not receiving payments have first call on

 7  any subsequent receipts in that or any subsequent year.

 8         (i)  The Florida Thoroughbred Breeders' Association

 9  shall keep accurate records showing receipts and disbursements

10  of such payments and shall annually file a full and complete

11  report to the division showing such receipts and disbursements

12  and the sums withheld for administration. The division may

13  audit the records and accounts of the Florida Thoroughbred

14  Breeders' Association to determine that payments have been

15  made to eligible breeders and stallion owners in accordance

16  with this section.

17         (j)  If the division finds that the Florida

18  Thoroughbred Breeders' Association has not complied with any

19  provision of this section, the division may order the

20  association to cease and desist from receiving funds and

21  administering funds received under this section. If the

22  division enters such an order, the permitholder shall make the

23  payments authorized in this section to the division for

24  deposit into the Pari-mutuel Wagering Trust Fund; and any

25  funds in the Florida Thoroughbred Breeders' Association

26  account shall be immediately paid to the Division of

27  Pari-mutuel Wagering for deposit to the Pari-mutuel Wagering

28  Trust Fund. The division shall authorize payment from these

29  funds to any breeder or stallion owner entitled to an award

30  that has not been previously paid by the Florida Thoroughbred

31  Breeders' Association in accordance with the applicable rate.

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

 2  section 550.26352, Florida Statutes, are amended to read:

 3         550.26352  Breeders' Cup Meet; pools authorized;

 4  conflicts; taxes; credits; transmission of races; rules;

 5  application.--

 6         (1)  Notwithstanding any provision of this chapter to

 7  the contrary, there is hereby created a special thoroughbred

 8  race meet which shall be designated as the "Breeders' Cup

 9  Meet." The Breeders' Cup Meet shall be conducted at the

10  facility of the Florida permitholder selected by Breeders' Cup

11  Limited to conduct the Breeders' Cup Meet.  The Breeders' Cup

12  Meet shall consist of 3 days: the day on which the Breeders'

13  Cup races are conducted, the preceding day, and the subsequent

14  day.  Upon the selection of the Florida permitholder as host

15  for the Breeders' Cup Meet and application by the selected

16  permitholder, the division shall issue a license to the

17  selected permitholder to operate the Breeders' Cup Meet.

18  Notwithstanding s. 550.09515(2)(a), The Breeders' Cup Meet may

19  be conducted on dates which the selected permitholder is not

20  otherwise authorized to conduct a race meet.

21         (3)  If the permitholder conducting the Breeders' Cup

22  Meet is located within 35 miles of one or more permitholders

23  scheduled to conduct a thoroughbred race meet on any of the 3

24  days of the Breeders' Cup Meet, then operation on any of those

25  3 days by the other permitholders is prohibited.  As

26  compensation for the loss of racing days caused thereby, such

27  operating permitholders shall receive a credit against the

28  taxes otherwise due and payable to the state under s. 550.0951

29  ss. 550.0951 and 550.09515.  This credit shall be in an amount

30  equal to the operating loss determined to have been suffered

31  by the operating permitholders as a result of not operating on

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 1  the prohibited racing days, but shall not exceed a total of

 2  $950,000.  The determination of the amount to be credited

 3  shall be made by the division upon application by the

 4  operating permitholder.  The tax credits provided in this

 5  subsection shall not be available unless an operating

 6  permitholder is required to close a bona fide meet consisting

 7  in part of no fewer than 10 scheduled performances in the 15

 8  days immediately preceding or 10 scheduled performances in the

 9  15 days immediately following the Breeders' Cup Meet.  Such

10  tax credit shall be in lieu of any other compensation or

11  consideration for the loss of racing days. There shall be no

12  replacement or makeup of any lost racing days.

13         (4)  Notwithstanding any provision of s. 550.0951 ss.

14  550.0951 and 550.09515, the permitholder conducting the

15  Breeders' Cup Meet shall pay no taxes on the handle included

16  within the pari-mutuel pools of said permitholder during the

17  Breeders' Cup Meet.

18         (5)  The permitholder conducting the Breeders' Cup Meet

19  shall receive a credit against the taxes otherwise due and

20  payable to the state under s. 550.0951 ss. 550.0951 and

21  550.09515 generated during said permitholder's next ensuing

22  regular thoroughbred race meet. This credit shall be in an

23  amount not to exceed $950,000 and shall be utilized by the

24  permitholder to pay the purses offered by the permitholder

25  during the Breeders' Cup Meet in excess of the purses which

26  the permitholder is otherwise required by law to pay.  The

27  amount to be credited shall be determined by the division upon

28  application of the permitholder which is subject to audit by

29  the division.

30         (6)  The permitholder conducting the Breeders' Cup Meet

31  shall receive a credit against the taxes otherwise due and

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 1  payable to the state under s. 550.0951 ss. 550.0951 and

 2  550.09515 generated during said permitholder's next ensuing

 3  regular thoroughbred race meet. This credit shall be in an

 4  amount not to exceed $950,000 and shall be utilized by the

 5  permitholder for such capital improvements and extraordinary

 6  expenses as may be necessary for operation of the Breeders'

 7  Cup Meet.  The amount to be credited shall be determined by

 8  the division upon application of the permitholder which is

 9  subject to audit by the division.

10         Section 8.  Subsections (3), (4), and (5) of section

11  550.2704, Florida Statutes, are amended to read:

12         550.2704  Jai Alai Tournament of Champions Meet.--

13         (3)  Notwithstanding any provision of this chapter,

14  each of the permitholders licensed to conduct performances

15  comprising the Jai Alai Tournament of Champions Meet shall pay

16  no taxes on handle under s. 550.0951 or s. 550.09511 for any

17  performance conducted by such permitholder as part of the Jai

18  Alai Tournament of Champions Meet. The provisions of this

19  subsection shall apply to a maximum of four performances.

20         (4)  The Jai Alai Tournament of Champions Meet

21  permitholders shall also receive a credit against the taxes,

22  otherwise due and payable under s. 550.0951 or s. 550.09511,

23  generated during said permitholders' current regular meet.

24  This credit shall be in the aggregate amount of $150,000,

25  shall be prorated equally between the permitholders, and shall

26  be utilized by the permitholders solely to supplement awards

27  for the performance conducted during the Jai Alai Tournament

28  of Champions Meet. All awards shall be paid to the

29  tournament's participating players no later than 30 days

30  following the conclusion of said Jai Alai Tournament of

31  Champions Meet.

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 1         (5)  In addition to the credit authorized in subsection

 2  (4), the Jai Alai Tournament of Champions Meet permitholders

 3  shall receive a credit against the taxes, otherwise due and

 4  payable under s. 550.0951 or s. 550.09511, generated during

 5  said permitholders' current regular meet, in an amount not to

 6  exceed the aggregate amount of $150,000, which shall be

 7  prorated equally between the permitholders, and shall be

 8  utilized by the permitholders for such capital improvements

 9  and extraordinary expenses, including marketing expenses, as

10  may be necessary for the operation of the meet. The

11  determination of the amount to be credited shall be made by

12  the division upon application of said permitholders.

13         Section 9.  Subsections (2), (3), (4), and (6) of

14  section 550.3551, Florida Statutes, are amended, and

15  subsection (15) is added to that section, to read:

16         550.3551  Transmission of racing and jai alai

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

18         (2)  Any horse track, dog track, or fronton licensed

19  under this chapter may transmit broadcasts of races or games

20  conducted at the enclosure of the licensee to locations

21  outside this state.

22         (a)  All broadcasts of horseraces transmitted to

23  locations outside this state must comply with the provisions

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

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

26         (b)  Wagers accepted by any out-of-state pari-mutuel

27  permitholder or licensed betting system on a race broadcasted

28  under this subsection may be, but are not required to be,

29  included in the pari-mutuel pools of the horse track in this

30  state that broadcasts the race upon which wagers are accepted.

31  The handle, as referred to in s. 550.0951(2) s. 550.0951(3),

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 1  does not include any wagers accepted by an out-of-state

 2  pari-mutuel permitholder or licensed betting system,

 3  irrespective of whether such wagers are included in the

 4  pari-mutuel pools of the Florida permitholder as authorized by

 5  this subsection.

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

 7  receive broadcasts of horseraces conducted at other horse

 8  racetracks located outside this state at the racetrack

 9  enclosure of the licensee during its racing meet.

10         (a)  All broadcasts of horseraces received from

11  locations outside this state must comply with the provisions

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

13  U.S.C. ss. 3001 et seq., except that as a condition precedent

14  to receiving such broadcasts, an operating thoroughbred

15  permitholder shall provide its consent to all licensed

16  thoroughbred permitholders within its market area to receive

17  broadcasts of horseraces conducted live at its facility and

18  from locations outside this state.

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 s. 550.0951 ss. 550.0951,

 9  550.09512, and 550.09515.  Section 550.2625(2)(a), (b), and

10  (c) does not apply to any money wagered on races broadcast

11  under this section.  Similarly, the takeout shall be increased

12  by breaks and uncashed tickets for wagers on races broadcast

13  under this section, notwithstanding any contrary provision of

14  this chapter.

15         (d)  Notwithstanding any contrary provision of this

16  chapter, a licensed thoroughbred permitholder may, at any time

17  on a day when the permitholder conducts live thoroughbred

18  racing at its pari-mutuel facility, offer to patrons at its

19  pari-mutuel facility wagering on broadcasts of horseraces

20  conducted at other horse racetracks located outside this

21  state. If a licensed thoroughbred permitholder conducted at

22  least 80 days of live thoroughbred racing at its pari-mutuel

23  facility during the preceding state fiscal year, the

24  permitholder may also, at any time on a day when the

25  permitholder does not conduct live thoroughbred racing at its

26  pari-mutuel facility, offer to patrons at its pari-mutuel

27  facility wagering on broadcasts of horseraces conducted at

28  other horse racetracks located outside this state. If a

29  licensed thoroughbred permitholder conducted fewer than 80

30  days of live thoroughbred racing at its pari-mutuel facility

31  during the preceding state fiscal year, a licensed

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 1  thoroughbred permitholder may, at any time on a day when the

 2  permitholder does not conduct live thoroughbred racing at its

 3  pari-mutuel facility, offer to patrons at its pari-mutuel

 4  facility wagering on broadcasts of thoroughbred horseraces

 5  conducted at thoroughbred racetracks located outside this

 6  state only if the permitholder, the Florida Thoroughbred

 7  Breeders' Association, and the association representing a

 8  majority of the thoroughbred racehorse owners and trainers at

 9  the permitholder's pari-mutuel facility enter into a prior

10  written agreement on file with the division allowing receipt

11  of such broadcast.

12         (e)  From wagers accepted under this subsection by a

13  thoroughbred permitholder outside of its current race meet,

14  1.9 percent of the handle from such wagers shall be paid

15  monthly for purses to the thoroughbred permitholder within its

16  market area which is conducting live races. If there are no

17  operating thoroughbred permitholders within its market area,

18  the purse money shall be distributed equally to any

19  thoroughbred permitholders conducting live racing.

20         (4)  Any dog track or fronton licensed under this

21  chapter may receive broadcasts of dograces or jai alai games

22  conducted at other tracks or frontons located outside the

23  state at the track enclosure of the licensee during its

24  operational meeting. All forms of pari-mutuel wagering are

25  allowed on dograces or jai alai games broadcast under this

26  subsection.  All money wagered by patrons on dograces

27  broadcast under this subsection shall be computed in the

28  amount of money wagered each performance for purposes of

29  taxation under s. 550.0951 ss. 550.0951 and 550.09511.

30         (6)(a)  A maximum of 20 percent of the total number of

31  races on which wagers are accepted by a greyhound permitholder

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 1  not located as specified in s. 550.615(6) may be received from

 2  locations outside this state.  A permitholder may not conduct

 3  fewer than eight live races or games on any authorized race

 4  day except as provided in this subsection. A thoroughbred

 5  permitholder may not conduct fewer than eight live races on

 6  any race day without the written approval of the Florida

 7  Thoroughbred Breeders' Association and the Florida Horsemen's

 8  Benevolent and Protective Association, Inc., unless it is

 9  determined by the department that another entity represents a

10  majority of the thoroughbred racehorse owners and trainers in

11  the state.  A harness permitholder may conduct fewer than

12  eight live races on any authorized race day, except that such

13  permitholder must conduct a full schedule of live racing

14  during its race meet consisting of at least eight live races

15  per authorized race day for at least 100 days.  Any harness

16  horse permitholder that during the preceding racing season

17  conducted a full schedule of live racing may, at any time

18  during its current race meet, receive full-card broadcasts of

19  harness horse races conducted at harness racetracks outside

20  this state at the harness track of the permitholder and accept

21  wagers on such harness races. With specific authorization from

22  the division for special racing events, a permitholder may

23  conduct fewer than eight live races or games when the

24  permitholder also broadcasts out-of-state races or games. The

25  division may not grant more than two such exceptions a year

26  for a permitholder in any 12-month period, and those two

27  exceptions may not be consecutive.

28         (b)  Notwithstanding any other provision of this

29  chapter, any harness horse permitholder accepting broadcasts

30  of out-of-state harness horse races when such permitholder is

31  not conducting live races must make the out-of-state signal

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 1  available to all permitholders eligible to conduct intertrack

 2  wagering and shall pay to guest tracks located as specified in

 3  ss. 550.615(6) and 550.6305(9)(d) 50 percent of the net

 4  proceeds after taxes and fees to the out-of-state host track

 5  on harness race wagers which they accept. A harness horse

 6  permitholder shall be required to pay into its purse account

 7  50 percent of the net income retained by the permitholder on

 8  account of wagering on the out-of-state broadcasts received

 9  pursuant to this subsection.  Nine-tenths of a percent of all

10  harness wagering proceeds on the broadcasts received pursuant

11  to this subsection shall be paid to the Florida Standardbred

12  Breeders and Owners Association under the provisions of s.

13  550.2625(4) for the purposes provided therein.

14         (c)  Notwithstanding any contrary provision of this

15  chapter, a thoroughbred permitholder that offers to its

16  patrons at its pari-mutuel facility wagering on broadcasts of

17  thoroughbred horseraces conducted at thoroughbred racetracks

18  located outside this state during the period outside of its

19  current racing meet shall pay into its purse account for use

20  as purses 50 percent of the net proceeds retained by the

21  thoroughbred permitholder on such wagers after payment of any

22  fees to the out-of-state thoroughbred track; amounts for

23  breeders' awards, stallion awards, and special racing awards

24  under s. 550.2625(3); and all taxes and other sums provided

25  for in this chapter.

26         (15)  Nothing in this chapter shall be construed to

27  prevent a licensed horserace permitholder from receiving and

28  offering to its patrons the ability to wager on broadcasts of

29  horseraces conducted at locations outside this state.

30         Section 10.  Section 550.475, Florida Statutes, is

31  amended to read:

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 1         550.475  Lease of pari-mutuel facilities by pari-mutuel

 2  permitholders.--

 3         (1)  Holders of valid pari-mutuel permits for the

 4  conduct of any jai alai games, dogracing, or thoroughbred and

 5  standardbred horse racing in this state are entitled to lease

 6  any and all of their facilities to any other holder of a same

 7  class valid pari-mutuel permit for jai alai games, dogracing,

 8  or thoroughbred or standardbred horse racing, when located

 9  within a 35-mile radius of each other; and such lessee is

10  entitled to a permit and license to operate its race meet or

11  jai alai games at the leased premises.

12         (2)  The operator of any licensed racetrack is

13  authorized to lease such track to any quarter horse racing

14  permitholder for the conduct of quarter horse racing under

15  this chapter.

16         Section 11.  Subsection (6) of section 550.615, Florida

17  Statutes, is amended and subsection (11) is added to that

18  section, to read:

19         550.615  Intertrack wagering.--

20         (6)  Notwithstanding the provisions of subsection (3),

21  in any area of the state where there are three or more

22  horserace permitholders within 25 miles of each other, a

23  harness permitholder may not accept intertrack wagers from any

24  greyhound permitholder or, except as authorized by s.

25  550.6305(9)(g)2., from any thoroughbred permitholder.

26  intertrack wagering between permitholders in said area of the

27  state shall only be authorized under the following conditions:

28  Any permitholder, other than a thoroughbred permitholder, may

29  accept intertrack wagers on races or games conducted live by a

30  permitholder of the same class or any harness permitholder

31  located within such area and any harness permitholder may

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 1  accept wagers on games conducted live by any jai alai

 2  permitholder located within its market area and from a jai

 3  alai permitholder located within the area specified in this

 4  subsection when no jai alai permitholder located within its

 5  market area is conducting live jai alai performances; any

 6  greyhound or jai alai permitholder may receive broadcasts of

 7  and accept wagers on any permitholder of the other class

 8  provided that a permitholder, other than the host track, of

 9  such other class is not operating a contemporaneous live

10  performance within the market area.

11         (11)  Notwithstanding contrary provisions of law, a

12  permitholder may engage in intertrack wagering with any other

13  licensed permitholder to which it is affiliated by virtue of

14  common ownership and shall pay the tax on handle as if the

15  intertrack wager were placed on the live race or game

16  conducted at the affiliated host track.

17         Section 12.  Subsections (1) and (9) of section

18  550.6305, Florida Statutes, are amended to read:

19         550.6305  Intertrack wagering; guest track payments;

20  accounting rules.--

21         (1)  All guest tracks which are eligible to receive

22  broadcasts and accept wagers on horseraces from a host track

23  racing under either a thoroughbred or quarter horse permit

24  shall be entitled to payment of 7 percent of the total

25  contributions to the pari-mutuel pool on wagers accepted at

26  the guest track unless the host thoroughbred track and the

27  guest track are located as specified in s. 550.615(6), where

28  such guest track shall be entitled to a payment of 3 percent.

29  All guest tracks that are eligible to receive broadcasts and

30  accept wagers on greyhound races or jai alai games from a host

31  track other than a thoroughbred or harness permitholder shall

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 1  be entitled to payments of not less than 5 percent of the

 2  total contributions to the daily pari-mutuel pool on wagers

 3  accepted at the guest track.  All guest tracks that are

 4  eligible to receive broadcasts and accept wagers on horseraces

 5  from a host track racing under a harness horse permit shall be

 6  entitled to a payment of 5 percent of the total contributions

 7  to the daily pari-mutuel pool on wagers accepted at the guest

 8  track. However, if a guest track is a horserace permitholder

 9  that accepts intertrack wagers during its current race meet,

10  one-half of the payment provided in this subsection and s.

11  550.6345 shall be paid as purses during its current race meet.

12         (a)  However, if the host track is a thoroughbred

13  permitholder, and the guest track is also a thoroughbred

14  permitholder and accepts intertrack wagers on thoroughbred

15  races during its current race meet, one-third of the payment

16  provided in this subsection shall be paid as purses during its

17  current race meet.  In addition, an amount equal to 2 percent

18  of the intertrack handle at the thoroughbred guest track shall

19  be remitted by the host track to the guest thoroughbred track,

20  which amount shall be deducted from the purses required to be

21  paid by the host track. Such amount shall be paid by the guest

22  thoroughbred track as purses during its current race meet.

23         (b)  If thoroughbred intertrack wagering is taken at

24  any guest track, including a thoroughbred guest track, which

25  is located within 25 miles of any thoroughbred permitholder

26  that is not conducting live racing, the host track shall pay

27  to such thoroughbred permitholder an amount equal to 2 percent

28  of the intertrack handle at all such guest tracks, including

29  the guest thoroughbred track, which amount shall be deducted

30  from the purses otherwise required to be paid by the host

31  

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 1  track.  This amount shall be used by the thoroughbred

 2  permitholder to pay purses during its next race meet.

 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  during its current meet, broadcast such out-of-state races to

 7  any guest track and accept wagers thereon in the same manner

 8  as is 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 under this chapter pursuant to s.

12  550.0951(3)(c)1., the cost to the permitholder required to be

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

14  paid to the Florida Thoroughbred Breeders' Association and the

15  Florida Standardbred Breeders and Owners Association, to be

16  used as 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)1.  Any permitholder located in a county any area of

 6  the state where there are only two permits, one for dogracing

 7  and one 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 located within 60 miles

10  of its facility and shall not be subject to the provisions of

11  paragraph (b) if such thoroughbred horse racing permitholder

12  located within the area specified in this paragraph is both

13  conducting live races and accepting wagers on out-of-state

14  horseraces.  In such case, the guest permitholder shall be

15  entitled to 50 45 percent of the net proceeds on wagers

16  accepted at the guest facility.  The remaining proceeds shall

17  be distributed as follows: 21.5 percent one-half shall be

18  retained by the host facility and 28.5 one-half shall be paid

19  by the host facility as purses at the host facility.

20         2.  Any permitholder located as specified in s.

21  550.615(8) may accept wagers on rebroadcasts of out-of-state

22  thoroughbred horse races from an in-state thoroughbred

23  permitholder and shall not be subject to the provisions of

24  paragraph (b) if such thoroughbred permitholder is located

25  outside of its market area and both conducting live races and

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

27  guest permitholder shall be entitled to 50 percent of the net

28  proceeds on wagers accepted at the guest facility. The

29  remaining proceeds shall be distributed as follows: 21.5

30  percent shall be retained by the host facility and 28.5

31  

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 1  percent shall be paid by the host facility as purses at the

 2  host facility.

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

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

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

 6  broadcast under this subsection shall be distributed as

 7  follows:

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

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

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

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

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

13  be paid to the guest facility;

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

15  be retained by the host facility; and

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

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

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

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

20  for jai alai, may accept wagers on rebroadcasts of

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

22  horse racing permitholder and shall not be subject to the

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

24  permitholder located within the area specified in this

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

26  permitholder shall be entitled to 45 percent of the net

27  proceeds on wagers accepted at the guest facility.  The

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

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

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

31  

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

 2  wagers on a simulcast signal must, during its current meet,

 3  make the signal available to any permitholder that is eligible

 4  to conduct intertrack wagering under the provisions of ss.

 5  550.615-550.6345, and located outside of its market area.

 6         2.  Any thoroughbred permitholder that which accepts

 7  wagers on a simulcast signal received after the latter of

 8  either the completion of its live racing performance or 6 p.m.

 9  must make such signal available to any permitholder that is

10  eligible to conduct intertrack wagering under the provisions

11  of ss. 550.615-550.6345 and located within its market area,

12  including any permitholder located as specified in s.

13  550.615(6).  Such guest permitholders are authorized to accept

14  wagers on such simulcast signal, notwithstanding any other

15  provision of this chapter to the contrary.

16         3.  Any thoroughbred permitholder which accepts wagers

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

18  signal available to any permitholder that is eligible to

19  conduct intertrack wagering under the provisions of ss.

20  550.615-550.6345, including any permitholder located as

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

22  authorized to accept wagers on such simulcast signals for a

23  number of performances not to exceed that which constitutes a

24  full schedule of live races for a quarter horse permitholder

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

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

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

28  such simulcast signals.

29  

30  No thoroughbred permitholder shall be required to continue to

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

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 1  the average per performance gross receipts returned to the

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

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

 4  condition of receiving rebroadcasts of thoroughbred simulcast

 5  signals under this paragraph, a guest permitholder must accept

 6  intertrack wagers on all live races conducted by all

 7  then-operating thoroughbred permitholders.

 8         Section 13.  Conditions on horseracing; Florida breds;

 9  additional breed racing.--

10         (1)  Each licensed horserace permitholder in the state

11  must schedule an average of one race per racing day in which

12  horses bred in this state and duly registered with the

13  appropriate breeders' organization have preference as entries

14  over non-Florida-bred horses. All licensed horserace

15  permitholders must write the conditions for such races in

16  which Florida-bred horses are preferred so as to assure that

17  all Florida-bred horses available for racing at such tracks

18  are given full opportunity to perform in the class races for

19  which they are qualified, and the opportunity of performing

20  must be afforded to each class of horses in the proportion

21  that the number of horses in this class bears to the total

22  number of Florida-bred horses available. However, a track is

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

24  class of horses for which a race would otherwise not be

25  scheduled at such track during its meeting.

26         (2)  Any quarter horse racing permitholder operating

27  under a valid permit issued by the division is authorized to

28  substitute other races of other breeds of horses which are,

29  respectively, registered with the American Paint Horse

30  Association, Appaloosa Horse Club, Arabian Horse Registry of

31  America, Jockey Club, Palomino Horse Breeders of America, or

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 1  United States Trotting Association, for no more than 50

 2  percent of the quarter horse races daily.

 3         (3)  Each licensed thoroughbred permitholder in this

 4  state may run one additional race per racing day composed

 5  exclusively of Arabian horses registered with the Arabian

 6  Horse Registry of America. Any licensed thoroughbred

 7  permitholder that elects to run one additional race per racing

 8  day composed exclusively of Arabian horses registered with the

 9  Arabian Horse Registry of America is not required to provide

10  stables for the Arabian horses racing under this paragraph.

11         (4)  Each licensed thoroughbred permitholder in this

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

13  composed exclusively of quarter horses registered with the

14  American Quarter Horse Association.

15         (5)  Any licensed harness permitholder may make

16  application for, and shall be issued by the division, a

17  license to operate not more than 50 quarter horse racing days

18  during the summer season, which shall extend from June 1 until

19  September 1 of each year.

20         Section 14.  Conversion of a quarter horse permit to a

21  thoroughbred permit.--

22         (1)  In any county where there are only two pari-mutuel

23  permits, one for jai alai and one for quarter horse racing,

24  the owner of the quarter horse permit may apply to the

25  division pursuant to this section to convert its quarter horse

26  permit to one for the conduct of thoroughbred racing.  Such

27  permitholder shall only be permitted to operate a thoroughbred

28  permit after its application has been submitted to the

29  division and its converted permit has been issued.  Following

30  the conversion of its permit, any license or permit issued to

31  

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 1  the permitholder for the conduct of quarter horse racing shall

 2  be null and void.

 3         (a)  The permitholder may apply for conversion of the

 4  permit at any time; however, the division may not issue its

 5  initial license to conduct thoroughbred racing until the

 6  permitholder has incurred a minimum capital expenditure as

 7  certified by the division of at least $50 million. "Capital

 8  expenditure" means an expenditure, including an expenditure

 9  for a construction project undertaken by a quarter horse

10  permitholder as its own contractor, which, under generally

11  accepted accounting principles, is not properly chargeable as

12  an expense of operation and maintenance, and includes the

13  cost, in current value, of the studies, surveys, designs,

14  plans, working drawings, specifications, refinancing costs,

15  and other activities essential to the acquisition,

16  improvement, expansion, or replacement of the land, plant, and

17  equipment.

18         (b)  During the time that the permitholder is making

19  the capital expenditure, the permitholder may submit monthly

20  for certification costs incurred related to the overall

21  capital expenditure. The division shall within 30 days after

22  the receipt of the information related to the capital

23  expenditure certify the validity of the cost incurred and the

24  official amount expended for the purposes of the capital

25  expenditure required under this section.

26         (2)  Notwithstanding section 550.0651, Florida

27  Statutes, such permitholder is entitled to a license for the

28  operation of a thoroughbred racetrack following the issuance

29  of its converted permit and certification of the requisite

30  capital expenditure. The license is renewable from year to

31  year as provided by law and authorizes the permitholder to

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 1  operate at any thoroughbred racetrack it may lease or build

 2  within such county. The provisions of this chapter that

 3  prohibit the location and operation of thoroughbred racetracks

 4  within a specified distance from the location of another

 5  permitholder and which prohibit the division from granting any

 6  permit at a location within a certain designed area do not

 7  apply to the provisions of this section and do not prevent the

 8  issuance of a license under this section.

 9         (3)  Such permitholder shall pay the same taxes as are

10  required to be paid under this chapter by all other

11  thoroughbred permitholders, and is further bound by all of the

12  provisions of this chapter that apply to the operation of

13  thoroughbred permitholders and racetracks and any rules

14  adopted by the division thereunder.

15         Section 15.  Section 550.09516, Florida Statutes, is

16  created to read:

17         550.09516  Annual fee for dormant permits;

18  revocation.--The Legislature has previously found that

19  pari-mutuel wagering provides substantial revenues to the

20  state. It further finds that the revenue-producing capability

21  is an integral reason for the issuance of a pari-mutuel permit

22  and that the failure to operate a pari-mutuel permit has

23  adverse impacts on the State Treasury. It is therefore

24  declared that pari-mutuel permitholders that do not conduct

25  live racing are nonetheless engaging in a taxable activity by

26  virtue of holding a pari-mutuel permit. This enactment is made

27  pursuant to, and for the purpose of, implementing such

28  findings.

29         (1)  Any permitholder that does not hold a current

30  license to conduct pari-mutuel wagering shall pay an annual

31  permit fee of $350,000 for the privilege of holding such

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 1  permit. Such annual fee shall be paid to the division not

 2  later than March 31 and shall be accompanied by information

 3  required by the division under s. 550.01215(2).

 4         (2)  The permit of a permitholder who does not comply

 5  with subsection (1) by March 31 shall be void and shall

 6  escheat to and become the property of the state. The

 7  department shall give the permitholder notice of its intent to

 8  revoke the permit in writing to the address listed on the

 9  permitholder's last application for licensure or, in the event

10  a license was not issued to the permitholder, to the address

11  listed on its application for a pari-mutuel permit. The

12  permitholder may within 30 days after the mailing of the

13  notice by the division comply with subsection (1), pay a late

14  fee of $50,000, and retain its permit. After the 30 days'

15  notice period has expired, the division shall revoke the

16  permit and issue a notice of revocation to the permitholder.

17         (3)  The division shall deposit these sums with the

18  Chief Financial Officer to the credit of the Pari-mutuel

19  Wagering Trust Fund.

20         Section 16.  Sections 550.0745, 550.09511, 550.09512,

21  550.09515, 550.1625, 550.3355, 550.334, 550.375, 550.5251, and

22  550.71, Florida Statutes, are repealed.

23         Section 17.  On the date when the Division of

24  Pari-mutuel Wagering has certified the expenditure by a

25  pari-mutuel permitholder and its affiliated companies of $100

26  million on capital improvements to its racing facility,

27  section 550.5251, Florida Statutes, is repealed, and section 2

28  of this act shall become law. In determining the expenditures,

29  the division shall include, in addition to actual costs of

30  material, labor, and machinery related to the capital

31  improvements, those costs incurred on or after January 1,

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 1  2004, related to the design, planning, and permitting for the

 2  capital expenditures.

 3         Section 18.  Any thoroughbred permitholder that either

 4  failed to operate all performances that it was authorized to

 5  operate under the license or licenses issued to it by the

 6  division for either or both the 2001-2002 or 2002-2003 Florida

 7  Thoroughbred Racing Seasons or which failed to operate any

 8  performance during the 2003-2004 Florida Thoroughbred Racing

 9  Season shall be excused from discipline by the division for

10  its failure to operate such performances, and its permit shall

11  be deemed valid and in good standing. Any thoroughbred

12  permitholder that violated the provisions of section

13  550.615(6), Florida Statutes, during the 2001-2002 Florida

14  Thoroughbred Racing Season shall be excused from discipline by

15  the division.

16         Section 19.  Section 849.161, Florida Statutes, is

17  amended to read:

18         849.161  Amusement arcades games or machines; when

19  chapter inapplicable.--

20         (1)(a)1.  Nothing contained in this chapter shall be

21  taken or construed as applicable to an arcade amusement center

22  having amusement games or machines not proscribed by s.

23  849.15, which operate by means of the insertion of a coin and

24  which by application of skill may entitle the person playing

25  or operating the game or machine to receive points or coupons

26  which may be exchanged for merchandise only, excluding cash,

27  and alcoholic beverages, tobacco products, and coupons

28  redeemable for cash, provided the cost value of the

29  merchandise or prize awarded in exchange for such points or

30  coupons does not exceed 75 cents on any game played.

31  Merchandise or a prize awarded may not exceed a value of $10.

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 1  All points or coupons received by a player may be exchanged

 2  for the specific product only at the same business location

 3  where the game or machine operated by the player is located.

 4  Points or coupons received by a player may not be exchanged

 5  for any gift certificate, mail order certificate, or similar

 6  conveyance that is redeemable at another business location or

 7  deliverable from a location other than where the arcade is

 8  located.

 9         2.  Any applicant for a license to operate an arcade

10  amusement center shall reveal all ownership interests,

11  including, but not limited to, any individual or corporate

12  silent partner, whether or not the applicant is acting on

13  behalf of a third party in making solicitation for license,

14  the ownership of the games or machines if other than the

15  applicant, and a copy of any lease or purchase agreement

16  relating to acquisition of the games or machines.

17         3.  Any applicant for a license to operate an arcade

18  amusement center shall provide a list of the games or machines

19  to be installed which shall include the name, model, serial

20  number, and date of manufacture of each machine. If games or

21  machines are added or exchanged subsequent to the opening of

22  the business, the original list shall be supplemented to

23  reflect these additions or exchanges, including ownership of

24  the games or machines and a copy of any lease or purchase

25  agreement relating to the acquisition of the games or

26  machines.

27         4.  Prior to issuance of license for an amusement

28  arcade center the licensing agency shall, at its option, have

29  the right to inspect and operate the games or machines to

30  determine if they comply with the provisions of this section.

31  

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 1  The licensing agency may designate a law enforcement agency or

 2  other expert to perform this inspection.

 3         5.  The operator of an arcade amusement center shall

 4  allow law enforcement officers or experts assisting law

 5  enforcement full and unfettered access to the business

 6  premises and the games and machines in order to inspect and

 7  test them to ensure compliance with the requirements of this

 8  section. This reasonable access shall occur during normal

 9  operating hours of the arcade amusement center.

10         2.  Nothing contained in this chapter shall be taken or

11  construed as applicable to any retail dealer who operates as a

12  truck stop, as defined in chapter 336 and which operates a

13  minimum of 6 functional diesel fuel pumps, having amusement

14  games or machines which operate by means of the insertion of a

15  coin or other currency and which by application of skill may

16  entitle the person playing or operating the game or machine to

17  receive points or coupons which may be exchanged for

18  merchandise limited to noncash prizes, toys, novelties, and

19  Florida Lottery products, excluding alcoholic beverages,

20  provided the cost value of the merchandise or prize awarded in

21  exchange for such points or coupons does not exceed 75 cents

22  on any game played. This subparagraph applies only to games

23  and machines which are operated for the entertainment of the

24  general public and tourists as bona fide amusement games or

25  machines.  This subsection shall not apply, however, to any

26  game or device defined as a gambling device in 24 U.S.C. s.

27  1171, which requires identification of each device by

28  permanently affixing seriatim numbering and name, trade name,

29  and date of manufacture under s. 1173, and registration with

30  the United States Attorney General, unless excluded from

31  applicability of the chapter under s. 1178.  This subsection

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 1  shall not be construed to authorize video poker games or any

 2  other game or machine that may be construed as a gambling

 3  device under Florida law.

 4         (b)  Nothing in this subsection shall be taken or

 5  construed as applicable to a coin-operated game or device

 6  designed and manufactured only for bona fide amusement

 7  purposes and not proscribed by s. 849.15, which game or device

 8  may, solely by application of skill, entitle the player to

 9  replay the game or device at no additional cost, if the game

10  or device: can accumulate and react to no more than 15 free

11  replays; can be discharged of accumulated free replays only by

12  reactivating the game or device for one additional play for

13  such accumulated free replay; can make no permanent record,

14  directly or indirectly, of free replays; and is not classified

15  by the United States as a gambling device in chapter 24 of

16  Title 15 U.S.C. under s. 1171 24 U.S.C. s. 1171, which

17  requires identification of each device by permanently affixing

18  seriatim numbering and name, trade name, and date of

19  manufacture under s. 1173, and registration with the United

20  States Attorney General, unless excluded from applicability of

21  the chapter under s. 1178. This subsection shall not be

22  construed to authorize video poker games, or any other game or

23  machine that may be construed as a gambling device under

24  Florida law.

25         (c)  Nothing in this subsection with respect to arcade

26  amusement centers shall be taken or construed to abrogate or

27  limit the power of a local government to establish or amend

28  the zoning map designation of a parcel or parcels of land or

29  change the actual list of permitted, conditional, or

30  prohibited uses within a zoning category, and any local

31  government may exercise such power as provided by law.

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 1         (2)  The legislative and governing body of a county or

 2  municipality shall have the power and authority to limit the

 3  number of hours of operation of arcade amusement centers and

 4  may also limit the number of machines allowed in such centers.

 5         (3)(2)  The term "arcade amusement center" as used in

 6  this section means a place of business having at least 50

 7  coin-operated amusement games or machines on premises which

 8  are operated for the entertainment of the general public and

 9  tourists as a bona fide amusement facility.

10         (4)  A game or machine that may be construed as a

11  gambling device under state law, including video poker games

12  or a game or device that resembles a gambling device as

13  defined in chapter 24 of Title 15 U.S.C. under s. 1171, is

14  prohibited at arcade amusement centers.

15         Section 20.  Section 849.1615, Florida Statutes, is

16  created to read

17         849.1615  Truck stops; when chapter inapplicable.--

18  Nothing contained in this chapter shall be taken or construed

19  as applicable to any retail dealer that operates as a truck

20  stop, as defined in chapter 336, and that operates a minimum

21  of six functional diesel fuel pumps, having amusement games or

22  machines which operate by means of the insertion of a coin or

23  other currency and which by application of skill may entitle

24  the person playing or operating the game or machine to receive

25  points or coupons that may be exchanged for merchandise

26  limited to noncash prizes, toys, novelties, and Florida

27  Lottery products, excluding alcoholic beverages, provided the

28  cost value of the merchandise or prize awarded in exchange for

29  such points or coupons does not exceed 75 cents on any game

30  played. All points or coupons received by a player may be

31  exchanged for the specific product only at the same business

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 1  location where the game or machine operated by the player is

 2  located. Points or coupons received by a player may not be

 3  exchanged for any gift certificate, mail order certificate, or

 4  similar conveyance that is redeemable at another business

 5  location or deliverable from a location other than where the

 6  arcade is located. This section applies only to games and

 7  machines that are operated for the entertainment of the

 8  general public and tourists as bona fide amusement games or

 9  machines. This section does not apply, however, to any game or

10  device defined as a gambling device in chapter 24 of Title 15

11  U.S.C. under s. 1171, which requires identification of each

12  device by permanently affixing seriatim numbering and name,

13  trade name, and date of manufacture under s. 1173, and

14  registration with the United States Attorney General, unless

15  excluded from applicability of the chapter under s. 1178. This

16  section may not be construed to authorize video poker games or

17  any other game or machine that may be construed as a gambling

18  device under federal law.

19         Section 21.  Paragraph (d) of subsection (3) of section

20  849.085, Florida Statutes, is amended to read:

21         849.085  Certain penny-ante games not crimes;

22  restrictions.--

23         (3)  A penny-ante game is subject to the following

24  restrictions:

25         (d)  A person may not solicit participants by means of

26  advertising in any form, advertise the time or place of any

27  penny-ante game, except for posting a notice at the dwelling

28  or distributing notice to residents or members of the entity

29  owning the dwelling, or advertise the fact that he or she will

30  be a participant in any penny-ante game.

31  

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 1         Section 22.  This act shall take effect upon becoming a

 2  law.

 3  

 4          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 5                            CS/SB 2474

 6                                 

 7  -    Reduces the number of live games required for jai alai to
         40 days;
 8  
    -    Creates a 100-mile restriction on the location of new
 9       quarter horse tracks near existing pari-mutuel
         facilities;
10  
    -    Restructures taxation for pari-mutuels;
11  
    -    Creates a minimum level of taxation for all pari-mutuels
12       of $350,000;

13  -    Institutes breeder awards at Gulfstream Park;

14  -    Removes simulcasting restrictions which exist in South
         Florida and allows for year-round simulcasting import at
15       Florida's thoroughbred tracks;

16  -    Creates a number of purse incentives for Florida Horsemen
         from the new simulcasting provisions;
17  
    -    Includes restrictions regarding adult amusement arcades;
18  
    -    Includes language to protect the Hialeah permit and
19       excuses discipline for violation of intertrack wagering
         provisions; and
20  
    -    Ties the conversion of the quarter horse permit held by
21       Ocala Breeders Sales to a thoroughbred permit in Ocala,
         provided a capital investment is made of more than $50
22       million on a new track. It further ties the elimination
         of the current 7 pm curfew on live thoroughbred racing to
23       a new investment of more than $100/million by a
         permitholder on their facility.
24  

25  

26  

27  

28  

29  

30  

31  

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