Senate Bill sb1174c3

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    Florida Senate - 2005             CS for CS for CS for SB 1174

    By the Committees on Ways and Means; Judiciary; Regulated
    Industries; and Senator Jones




    576-2329-05

  1                      A bill to be entitled

  2         An act relating to pari-mutuel wagering;

  3         amending s. 550.2415, F.S.; requiring the

  4         Division of Pari-mutuel Wagering in the

  5         Department of Business and Professional

  6         Regulation to maintain certain records

  7         regarding injuries and the disposition of

  8         greyhounds that race in this state; providing

  9         guidelines and requirements for injury and

10         disposition report forms; providing for the

11         adoption of rules; providing penalties;

12         creating ch. 551, F.S.; implementing s. 23,

13         Art. X of the State Constitution; authorizing

14         slot machines and slot machine gaming within

15         certain pari-mutuel facilities located in

16         Miami-Dade and Broward Counties upon approval

17         by a local referendum; providing definitions;

18         providing powers and duties of the Division of

19         Pari-mutuel Wagering in the Department of

20         Business and Professional Regulation;

21         clarifying the authority of local law

22         enforcement agencies; providing for licensure

23         to conduct slot machine gaming; providing for

24         slot machine licensure renewal; providing for a

25         license fee, machine fee, and tax rate;

26         providing for a local supplemental tax;

27         requiring occupational licenses and application

28         fees; prohibiting certain business

29         relationships; prohibiting certain acts and

30         providing penalties; providing an exception to

31         prohibitions relating to slot machines;

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 1         providing for the exclusion of certain persons

 2         from facilities; prohibiting minors under 21

 3         years of age from playing slot machines;

 4         designating slot machine gaming areas;

 5         prohibiting automated teller machines on the

 6         property of a slot machine licensee; providing

 7         for days and hours of operation; providing

 8         penalties; providing a compulsive gambling

 9         treatment program; providing for a fee;

10         providing for a caterer's license; providing

11         for rulemaking; providing for the conduct of a

12         referendum election for slot machines;

13         providing for elections for ratification of

14         slot machine licensing; authorizing additional

15         positions and providing appropriations;

16         providing effective dates.

17  

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

19  

20         Section 1.  Effective July 1, 2005, subsection (6) of

21  section 550.2415, Florida Statutes, is amended to read:

22         550.2415  Racing of animals under certain conditions

23  prohibited; penalties; exceptions.--

24         (6)(a)  It is the intent of the Legislature that

25  animals that participate in races in this state on which

26  pari-mutuel wagering is conducted and animals that are bred

27  and trained in this state for racing be treated humanely, both

28  on and off racetracks, throughout the lives of the animals.

29         (b)  The division shall, by rule, establish the

30  procedures for euthanizing greyhounds.  However, a greyhound

31  may not be put to death by any means other than by lethal

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 1  injection of the drug sodium pentobarbital.  A greyhound may

 2  not be removed from this state for the purpose of being

 3  destroyed.

 4         (c)  It is a violation of this chapter for an

 5  occupational licensee to train a greyhound using live or dead

 6  animals.  A greyhound may not be taken from this state for the

 7  purpose of being trained through the use of live or dead

 8  animals.

 9         (d)  A conviction of cruelty to animals pursuant to s.

10  828.12 involving a racing animal constitutes a violation of

11  this chapter.

12         (e)  The division shall maintain accurate records and

13  statistics regarding injuries incurred by greyhounds that race

14  in this state. The division shall adopt rules requiring the

15  reporting of injuries incurred by greyhounds while racing in

16  this state, including schooling races. Such reports must

17  include:

18         1.  The greyhound's registered name and right and left

19  ear tattoo numbers.

20         2.  The name, business address, and telephone number of

21  the greyhound owner, trainer, and kennel operator.

22         3.  The color, weight, and sex of the greyhound.

23         4.  The specific type of injury, the cause of the

24  injury, the estimated recovery time, and the location of the

25  injury on the greyhound.

26         5.  Where the injury occurred, whether on a racing

27  track or in another area.

28         6.  If the injury occurred while the greyhound was

29  racing, the racetrack where the injury occurred; the distance,

30  grade, race, and post position when the injury occurred; and

31  

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 1  the weather conditions, time, temperature, and track condition

 2  at the time of the injury.

 3         7.  A certification by the racetrack veterinarian that

 4  the form is correct.

 5         (f)  The division shall maintain accurate records and

 6  statistics regarding the disposition of greyhounds that

 7  participate in racing in this state. The division shall adopt

 8  rules requiring the reporting of the disposition of greyhounds

 9  that race in this state, including schooling races. As used in

10  the reporting requirement, the term "disposition" means death,

11  transfer to another jurisdiction, retirement, adoption, sale,

12  or donation for medical research or another purpose. Such

13  reports must include:

14         1.  The greyhound's registered name and right and left

15  ear tattoo numbers; the name, business address, and telephone

16  number of the greyhound owner, trainer, and kennel operator;

17  and the name and address of the race track where the greyhound

18  last raced prior to disposition.

19         2.  If the greyhound was transferred to another track,

20  the name and address of the track that received the greyhound

21  and the name, business address, telephone number, and driver's

22  license number and state of issuance of the person who

23  received the greyhound on behalf of that track.

24         3.  If the greyhound was retired for breeding, the name

25  and address of the facility that received the greyhound and

26  the name, business address, telephone number, and driver's

27  license number and state of issuance of the person who

28  received the greyhound on behalf of that facility.

29         4.  If the greyhound was adopted or placed for

30  adoption, the name and address of the person that received the

31  greyhound and, if applicable, the name, business address,

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 1  telephone number, and driver's license number and state of

 2  issuance of the person who received the greyhound on behalf of

 3  the adoption facility.

 4         5.  If the greyhound was euthanized, the name, address,

 5  professional title, professional affiliation of the person

 6  performing the euthanasia, method of euthanasia, and reason

 7  the greyhound was euthanized rather than adopted.

 8         6.  If the greyhound was sold or donated, the name of

 9  the person to whom the greyhound was sold or donated, and if

10  donated, the name, business address, telephone number, and

11  driver's license number and state of issuance of the person

12  who received the greyhound on behalf of the donee.

13         7.  If the disposition of the greyhound does not fit

14  into any of the above categories, the name of the person to

15  whom the greyhound was transferred, and the name, business

16  address, telephone number, and driver's license number and

17  state of issuance of the person who received the greyhound.

18         8.  Certification by the owner, trainer, and kennel

19  operator that the disposition forms are correct.

20         (g)  The division shall maintain injury and disposition

21  records for 7 years.

22         (h)  In addition to other penalties imposed by law, a

23  person who knowingly makes a false statement on an injury or

24  disposition form commits a misdemeanor of the first degree,

25  punishable as provided in s. 775.082 or s. 775.083. A person

26  who knowingly makes a false statement on an injury or

27  disposition form on a second or subsequent occasion commits a

28  felony of the third degree, punishable as provided in s.

29  775.082, s. 775.083, or s. 775.084.

30         Section 2.  Chapter 551, Florida Statutes, consisting

31  of sections 551.101, 551.102, 551.103, 551.104, 551.105,

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 1  551.106, 551.107, 551.108, 551.109, 551.110, 551.111, 551.112,

 2  551.113, 551.114, 551.116, 551.117, 551.118, 551.119, 551.120,

 3  and 551.121, is created to read:

 4                           CHAPTER 551

 5                          SLOT MACHINES

 6         551.101  Slot machine gaming authorized.--Any existing,

 7  licensed pari-mutuel facility located in Miami-Dade County or

 8  Broward County at the time of adoption of s. 23, Art. X of the

 9  State Constitution which has conducted live racing or games

10  during calendar years 2002 and 2003 may possess slot machines

11  and conduct slot machine gaming at the location where the

12  pari-mutuel permitholder is authorized to conduct pari-mutuel

13  wagering activities pursuant to such permitholder's valid

14  pari-mutuel permit or as otherwise authorized by law provided

15  a majority of voters in a countywide referendum have approved

16  the possession of slot machines at such facility in the

17  respective county. Notwithstanding any other provision of law,

18  it is not a crime for a person to participate in slot machine

19  gaming at a pari-mutuel facility licensed to possess and

20  conduct slot machine gaming or to participate in slot machine

21  gaming described in this chapter.

22         551.102  Definitions.--As used in this chapter, the

23  term:

24         (1)  "Central control computer" means a central site

25  computer controlled and accessible by the division to which

26  all slot machines at a gaming facility communicate for the

27  purposes of auditing capacity; real-time information retrieval

28  of the details of any financial event that occurs in the

29  operation of a slot machine, including, but not limited to,

30  coin in, coin out, ticket in, ticket out, jackpots, machine

31  

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 1  door openings and power failure; and remote machine activation

 2  and disabling of slot machines.

 3         (2)  "Designated slot machine gaming area" means the

 4  area of an eligible facility, which may include any addition,

 5  alteration, or new structure located on the premises described

 6  in the pari-mutuel permit issued by the division for the

 7  conduct of pari-mutuel wagering, in which slot machine gaming

 8  may be conducted in accordance with the provisions of this

 9  chapter.

10         (3)  "Distributor" means any person that sells, leases,

11  or offers, or otherwise provides, distributes, or services,

12  any slot machine or associated equipment for use or play of

13  slot machines in this state. A manufacturer may be a

14  distributor within the state.

15         (4)  "Division" means the Division of Pari-mutuel

16  Wagering of the Department of Business and Professional

17  Regulation.

18         (5)  "Eligible facility" means any existing licensed

19  pari-mutuel facility located in Miami-Dade County or Broward

20  County at the time of adoption of s. 23, Art. X of the State

21  Constitution which has conducted live racing or games during

22  calendar years 2002 and 2003 and has been approved by a

23  majority of voters in a countywide referendum to have slot

24  machines at such facility in the respective county.

25         (6)  "Independent testing laboratory" means a

26  laboratory of national reputation which is demonstrably

27  competent and qualified to scientifically test and evaluate

28  slot machines for compliance with this chapter and to

29  otherwise perform the functions assigned to it in this

30  chapter. An independent testing laboratory shall not be owned

31  or controlled by a licensee. The use of an independent testing

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 1  laboratory for any purpose related to the conduct of slot

 2  machine gaming by a licensee under this chapter shall be made

 3  from a list of one or more laboratories approved by the

 4  division.

 5         (7)  "Manufacturer" means any person who manufactures,

 6  builds, rebuilds, fabricates, assembles, produces, programs,

 7  designs, or otherwise makes modifications to any slot machine

 8  or associated equipment for use or play of slot machines in

 9  this state for gaming purposes. A manufacturer may be a

10  distributor within the state.

11         (8)  "Progressive system" means a computerized system

12  linking slot machines in one or more licensed facilities

13  within this state and offering one or more common progressive

14  payouts based on the amounts wagered.

15         (9)  "Slot machine" means any mechanical or electrical

16  contrivance, terminal, machine, or other device that, upon

17  insertion of a coin, bill, ticket, token, or similar object or

18  upon payment of any consideration whatsoever, including the

19  use of any electronic payment system except a credit card or

20  debit card, is available to play or operate, the play or

21  operation of which, whether by reason of skill or application

22  of the element of chance or both, may deliver or entitle the

23  person or persons playing or operating the contrivance,

24  terminal, machine, or other device to receive cash, billets,

25  tickets, tokens, or electronic credits to be exchanged for

26  cash or to receive merchandise or anything of value

27  whatsoever, whether the payoff is made automatically from the

28  machine or manually.  A slot machine:

29         (a)  May use spinning reels or video displays or both.

30         (b)  May or may not dispense coins, tickets, or tokens

31  to winning patrons.

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 1         (c)  May use an electronic credit system for receiving

 2  wagers and making payouts.

 3  

 4  The term includes associated equipment necessary to conduct

 5  the operation of the contrivance, terminal, machine, or other

 6  device.

 7         (10)  "Slot machine license" means a license issued by

 8  the division authorizing an eligible facility to place and

 9  operate slot machines as required by the provisions of this

10  chapter and the rules.

11         (11)  "Slot machine licensee" means an eligible

12  facility that holds a slot machine license.

13         (12)  "Slot machine operator" means a person employed

14  or contracted by the owner of an eligible facility to conduct

15  slot machine gaming at that eligible facility.

16         (13)  "Slot machine owner" means a person who holds a

17  material interest in the slot machines.

18         (14)  "Slot machine revenues" means the total of all

19  cash and property received by the slot machine licensee from

20  slot machine gaming operations less the amount of cash, cash

21  equivalents, credits, and prizes paid to winners of slot

22  machine gaming.

23         551.103  Powers and duties.--

24         (1)  The division shall adopt, pursuant to the

25  provisions of ss. 120.536(1) and 120.54, all rules necessary

26  to implement, administer, and regulate slot machine gaming as

27  authorized in this chapter. Such rules shall include:

28         (a)  Procedures for applying for a license and renewal

29  of a license.

30         (b)  Procedures for establishing technical requirements

31  in addition to the qualifications that are necessary to

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 1  receive a slot machine license or slot machine occupational

 2  license.

 3         (c)  Procedures relating to slot machine revenues,

 4  including verifying and accounting for such revenues,

 5  auditing, and collecting taxes and fees consistent with this

 6  chapter.

 7         (d)  Procedures for regulating, managing, and auditing

 8  the operation, financial data, and program information

 9  relating to slot machines through the central control

10  computer.

11         (e)  Procedures for requiring each licensee at his or

12  her own cost and expense to supply the division with a bond

13  having the penal sum of $2 million payable to the Governor and

14  his or her successors in office for the licensee's first year

15  of slot machine operations; and, thereafter, the licensee

16  shall file a bond with the penal sum as determined by the

17  division pursuant to rules adopted to approximate anticipated

18  state revenues from the licensee's slot machine operations.

19  Any bond shall be issued by a surety or sureties to be

20  approved by the division and the Chief Financial Officer,

21  conditioned to faithfully make the payments to the Chief

22  Financial Officer in his or her capacity as treasurer of the

23  division. The licensee shall be required to keep its books and

24  records and make reports as provided in this chapter and to

25  conduct its slot machine operations in conformity with this

26  chapter and all other provisions of law. The division may

27  review the bond for adequacy and require adjustments each

28  fiscal year. Such bond shall be separate and distinct from the

29  bond required in s. 550.125.

30         (f)  Procedures for requiring licensees to maintain

31  specified records and submit any data, information, record, or

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 1  report, including financial and income records, required by

 2  this chapter or determined by the division to be necessary to

 3  the proper implementation and enforcement of this chapter.

 4         (g)  Procedures for requiring that the payout

 5  percentage of a slot machine shall be no less than 85 percent

 6  per facility.

 7         (2)  The division shall conduct such investigations as

 8  the division determines necessary to fulfill its

 9  responsibilities under the provisions of this chapter.

10         (3)  The division shall investigate criminal violations

11  of this chapter and may investigate any other criminal

12  violation of law occurring on the facilities of a slot machine

13  licensee and such investigations may be conducted in

14  conjunction with the appropriate state attorney and

15  appropriate law enforcement agencies. The division and its

16  employees and agents shall have such other law enforcement

17  powers as specified in ss. 943.04 and 943.10.

18         (4)  The division shall have unrestricted access to the

19  slot machine licensee facility at all times and shall require

20  of each slot machine licensee strict compliance with the laws

21  of this state relating to the transaction of such business.

22  The division may:

23         (a)  Inspect and examine premises where slot machines

24  are offered for play.

25         (b)  Inspect slot machines and related equipment and

26  supplies.

27         (c)  Collect taxes, assessments, fees, and penalties.

28         (d)  Deny, revoke, suspend, or place conditions on the

29  license of a person who violates any provision of this chapter

30  or rule adopted pursuant thereto.

31  

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 1         (5)  The division shall revoke or suspend the license

 2  of any person who is no longer qualified or who is found,

 3  after receiving a license, to have been unqualified at the

 4  time of application for the license.

 5         (6)  Nothing in this section shall be construed to

 6  prohibit law enforcement authorities within the jurisdiction

 7  of a slot machine licensee facility from conducting criminal

 8  investigations occurring on the facilities of the slot machine

 9  licensee.

10         (7)  Nothing in this section shall be construed to

11  restrict access to the slot machine licensee facility by local

12  law enforcement authorities within the jurisdiction of the

13  slot machine licensee facility.

14         (8)  Nothing in this section shall be construed to

15  restrict access to information and records necessary to the

16  investigation of criminal activity which are contained within

17  the slot machine licensee facility by local law enforcement

18  authorities.

19         551.104  License to conduct slot machine gaming.--

20         (1)  Upon application and a finding by the division

21  after investigation that the application is complete and the

22  applicant is qualified and payment of the initial license fee,

23  the division shall issue a license to conduct slot machine

24  gaming in the designated slot machine gaming area of the slot

25  machine licensee's facility. Once licensed, slot machine

26  gaming may be conducted subject to the requirements of this

27  chapter and rules adopted pursuant thereto.

28         (2)  An application may be approved by the division

29  only after the voters of the county where the applicant's

30  facility is located have authorized by referendum slot

31  

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 1  machines within pari-mutuel facilities in that county as

 2  specified in s. 23, Art. X of the State Constitution.

 3         (3)  A slot machine license may be issued only to a

 4  licensed pari-mutuel permitholder, and slot machine gaming may

 5  be conducted only at the same facility at which the

 6  permitholder is authorized under its valid pari-mutuel

 7  wagering permit to conduct pari-mutuel wagering activities.

 8         (4)  As a condition of licensure and to maintain

 9  continued authority for the conduct of slot machine gaming,

10  the slot machine licensee shall:

11         (a)  Continue to be in compliance with this chapter.

12         (b)  Continue to be in compliance with chapter 550,

13  where applicable, and maintain the pari-mutuel permit and

14  license in good standing pursuant to the provisions of chapter

15  550. Notwithstanding any contrary provision of law and in

16  order to expedite the operation of slot machines at eligible

17  facilities, any eligible facility shall be entitled within 60

18  days after the effective date of this act to amend its

19  2005-2006 license issued by the Division of Pari-mutuel

20  Wagering and shall be granted the requested changes in its

21  authorized performances pursuant to such amendment. The

22  Division of Pari-mutuel Wagering shall issue a new license to

23  the eligible facility to effectuate an amendment.

24         (c)  Conduct not less than a full schedule of live

25  performances or games as defined in s. 550.002(11).

26         (d)  Upon approval of any changes relating to the

27  pari-mutuel permit by the division, be responsible for

28  providing appropriate current and accurate documentation on a

29  timely basis to the division in order to continue the slot

30  machine license in good standing.

31  

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 1         (e)  Allow unrestricted access and right of inspection

 2  by the division to facilities of a slot machine licensee in

 3  which any activity relative to the conduct of slot machine

 4  gaming is conducted.

 5         (f)  Submit a security plan, including a slot machine

 6  floor plan, location of security cameras, and the listing of

 7  security equipment that is capable of observing and

 8  electronically recording activities being conducted in the

 9  designated slot machine gaming area.

10         (g)  Use the Internet-based job-listing system of the

11  Agency for Workforce Innovation in advertising employment

12  opportunities. Further, each slot machine licensee in its

13  gaming operations shall create equal employment opportunities

14  that shall be implemented in a nondiscriminatory manner in

15  hiring and promoting employees to achieve the full and fair

16  participation of women, Asians, blacks, Hispanics, Native

17  Americans, persons with disabilities, and other protected

18  groups within the municipality where the pari-mutuel facility

19  is located, and an action plan and programs shall be

20  implemented by each pari-mutuel facility designed to ensure

21  that the percentage of the minority population in the area in

22  which each pari-mutuel facility is located is considered to

23  the extent minority applications are submitted in equal

24  proportion to the number of jobs open for hiring at entry

25  level, managerial, supervisory, and any other positions,

26  unless there is a bona fide occupational qualification

27  requiring a distinct and unique employment expertise that a

28  minority applicant does not possess.

29         (5)  A slot machine license is not transferable.

30         551.105  Slot machine license renewal.--

31  

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 1         (1)  Slot machine licenses shall be renewed annually.

 2  The application for renewal shall contain all revisions to the

 3  information submitted in the prior year's application which is

 4  necessary to maintain such information as both accurate and

 5  current.

 6         (2)  The applicant for renewal shall attest that any

 7  information changes do not affect the applicant's

 8  qualifications for license renewal.

 9         (3)  Upon determination by the division that the

10  application for renewal is complete and qualifications have

11  been met, including payment of the renewal fee, the slot

12  machine license shall be renewed annually.

13         551.106  License fee; machine fee; tax rate.--

14         (1)  LICENSE FEE.--Upon approval of the application for

15  a slot machine license, the licensee must pay to the division

16  an initial license fee of $4 million for the first year of

17  operation. Thereafter, an annual license fee of $1,000 per

18  slot machine shall be paid.  Such payment shall be made

19  directly to the Pari-mutuel Wagering Trust Fund established

20  pursuant to s. 455.116.  Such payments shall be accounted for

21  separately from taxes or fees paid pursuant to the provisions

22  of chapter 550.  Such funds in such trust fund may be

23  appropriated annually by the Legislature to the division for

24  its administration of this chapter and carrying out of its

25  regulatory functions set forth in this chapter.

26         (2)  TAX ON SLOT MACHINE REVENUES.  

27         (a)  The tax rate on slot machine revenues on each

28  facility shall be:

29         1.  Thirty percent on revenue of $100 million or less;

30         2.  Thirty-two and one-half percent on revenue greater

31  than $100 million, but less than or equal to $200 million; and

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 1         3.  Thirty-five percent on all revenue greater than

 2  $200 million.

 3         (b)  The tax shall be collected on a daily basis and

 4  deposited into the Public Education Capital Outlay and Debt

 5  Service Trust Fund.

 6         (c)  The division shall notify the eligible facility

 7  concerning the appropriate tax rate to apply to the slot

 8  machine revenues.

 9         (3)  PAYMENT PROCEDURES.--Tax payments shall be

10  remitted daily, as determined by rule of the division. The

11  slot machine licensee shall file a report under oath by the

12  5th day of each calendar month for all taxes remitted during

13  the preceding calendar month which shall show all slot machine

14  activities for the preceding calendar month and such other

15  information as may be required by the division.

16         (4)  FAILURE TO PAY TAX; PENALTIES.--A slot machine

17  licensee who fails to make tax payments as required under this

18  section is subject to an administrative penalty of up to

19  $1,000 for each day the tax payment is not remitted. All

20  administrative penalties imposed and collected shall be

21  deposited into the Pari Mutuel Wagering Trust Fund in the

22  Department of Business and Professional Regulation. If any

23  slot machine licensee fails to pay penalties imposed by order

24  of the division under this subsection, the division may

25  suspend, revoke, or fail to renew the license of the slot

26  machine licensee.

27         (5)  FAILURE TO PAY TAX; GROUNDS TO SUSPEND, REVOKE, OR

28  FAIL TO RENEW THE LICENSE.--In addition to the penalties

29  imposed under subsection (4), any willful or wanton failure by

30  a slot machine licensee to make payments of the tax

31  constitutes sufficient grounds for the division to suspend,

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 1  revoke, or fail to renew the license of the slot machine

 2  licensee.

 3         (6)  SUBMISSION OF FUNDS.--The division may require

 4  slot machine licensees to remit taxes, fees, fines, and

 5  assessments by electronic funds transfer.

 6         (7)  LOCAL EDUCATION SUPPLEMENTAL SLOT MACHINE TAX.--

 7         (a)  On January 1 of each year, an annual tax of $500

 8  per machine shall be imposed upon each slot machine approved

 9  for use at any slot machine licensee's facility. The slot

10  machine licensee shall, on or before March 1 of each year, pay

11  the total amount of such tax to the division. The division

12  shall deposit any tax imposed pursuant to this subsection in

13  the Educational Enhancement Trust Fund in the Department of

14  Education on or before July 1 of each year. The Department of

15  Education shall, on or before August 1 of each year, forward

16  to the school district where a slot machine licensee is

17  located, any tax revenues collected from such slot machine

18  licensee pursuant to this subsection. The school district

19  shall use such revenues to pay additional:

20         1.  Supplemental public education instruction expenses;

21         2.  Classroom and school facilities construction

22  expenses;

23         3.  School safety expenses; or

24         4.  Educational infrastructure expenses.

25  

26  All expenses under this paragraph must have been incurred as a

27  direct result of the slot machine licensee's operation of slot

28  machines in the school district during the immediately

29  preceding school year.

30         (b)  On or before June 30 of each year following a

31  school district's receipt of tax revenues, the Department of

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 1  Education shall conduct a independent audit for purposes of

 2  confirming the amount of any additional expenses to the school

 3  district which are attributable to such district as a direct

 4  result of the slot machine licensee's operations of slot

 5  machines in the school district during the immediately

 6  preceding school year. The amount of the tax revenues received

 7  from a slot machine licensee pursuant to this section, in

 8  excess of the amount of any such additional direct expenses,

 9  as determined by the Department of Education audit, shall be

10  returned to the Educational Enhancement Trust Fund within 90

11  days after the audit becomes final.

12         551.107  Occupational license required; application;

13  fee.--

14         (1)  The individuals and entities that are licensed

15  under this section require heightened state scrutiny,

16  including the submission by the individual licensees or

17  persons associated with the entities described in this chapter

18  of fingerprints for a criminal records check.

19         (2)(a)  The following licenses shall be issued to

20  persons or entities having access to the designated slot

21  machine gaming area or to persons who, by virtue of the

22  position they hold, might be granted access to these areas or

23  to any other person or entity in one of the following

24  categories:

25         1.  General occupational licenses for general

26  employees, food service, maintenance, and other similar

27  service and support employees having access to the designated

28  slot machine gaming area. Service and support employees with a

29  current pari-mutuel occupational license issued pursuant to

30  chapter 550 and a current background check are not required to

31  submit to an additional background check for a slot machine

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 1  occupational license as long as the pari-mutuel occupational

 2  license remains in good standing.

 3         2.  Professional occupational licenses for any person,

 4  proprietorship, partnership, corporation, or other entity that

 5  is authorized by a slot machine licensee to manage, oversee,

 6  or otherwise control daily operations as a slot machine

 7  manager, floor supervisor, security personnel, or any other

 8  similar position of oversight of gaming operations.

 9         3.  Business occupational licenses for any slot machine

10  management company or slot machine business associated with

11  slot machine gaming or a person who manufactures, distributes,

12  or sells slot machines, slot machine paraphernalia, or other

13  associated equipment to slot machine licensees or any person

14  not an employee of the slot machine licensee who provides

15  maintenance, repair, or upgrades or otherwise services a slot

16  machine or other slot machine equipment.

17         (b)  Slot machine occupational licenses are not

18  transferable.

19         (3)  A slot machine licensee shall not employ or

20  otherwise allow a person to work at a slot machine facility

21  unless such person holds a valid occupational license. A slot

22  machine licensee shall not contract or otherwise do business

23  with a business required to hold a slot machine occupational

24  license unless the business holds such a license. A slot

25  machine licensee shall not employ or otherwise allow a person

26  to work in a supervisory or management professional level at a

27  slot machine facility unless such person holds a valid

28  occupational license.

29         (4)(a)  A person seeking a slot machine occupational

30  license, or renewal thereof, shall make application on forms

31  prescribed by the division and include payment of the

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 1  appropriate application fee. Initial and renewal applications

 2  for slot machine occupational licenses shall contain all the

 3  information the division, by rule, may determine is required

 4  to ensure eligibility.

 5         (b)  The division shall establish, by rule, a schedule

 6  for the annual renewal of slot machine occupational licenses.

 7         (c)  Pursuant to rules adopted by the division, any

 8  person may apply for and, if qualified, be issued an

 9  occupational license valid for a period of 3 years upon

10  payment of the full occupational license fee for each of the 3

11  years for which the license is issued. The occupational

12  license shall be valid during its specified term at any slot

13  machine facility where slot machine gaming is authorized to be

14  conducted.

15         (d)  The slot machine occupational license fee for

16  initial application and annual renewal shall be determined by

17  rule of the division but shall not exceed $50 for a general or

18  professional occupational license for an employee of the slot

19  machine licensee or $1,000 for a business occupational license

20  for nonemployees of the licensee providing goods or services

21  to the slot machine licensee.  License fees for general

22  occupational licensees shall be paid for by the slot machine

23  licensee. Failure to pay the required fee shall be grounds for

24  disciplinary action by the division against the slot machine

25  licensee but shall not be considered a violation of this

26  chapter or rules of the division by the general occupational

27  licensee or a prohibition against the initial issuance or the

28  renewal of the general occupational license.

29         (5)  If the state gaming commission or other similar

30  regulatory authority of another state or jurisdiction extends

31  

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 1  to the division reciprocal courtesy to maintain disciplinary

 2  control, the division may:

 3         (a)  Deny an application for or revoke, suspend, or

 4  place conditions or restrictions on a license of a person or

 5  entity who has been refused a license by any other state

 6  gaming commission or similar authority; or

 7         (b)  Deny an application for or suspend or place

 8  conditions on a license of any person or entity who is under

 9  suspension or has unpaid fines in another jurisdiction.

10         (6)(a)  The division may deny, suspend, revoke, or

11  declare ineligible any occupational license if the applicant

12  for or holder thereof has violated the provisions of this

13  chapter or the rules of the division governing the conduct of

14  persons connected with slot machine gaming. In addition, the

15  division may deny, suspend, revoke, or declare ineligible any

16  occupational license if the applicant for such license has

17  been convicted in this state, in any other state, or under the

18  laws of the United States of a capital felony, a felony, or an

19  offense in any other state which would be a felony under the

20  laws of this state involving arson; trafficking in, conspiracy

21  to traffic in, smuggling, importing, conspiracy to smuggle or

22  import, or delivery, sale, or distribution of a controlled

23  substance; or a crime involving a lack of good moral

24  character, or has had a slot machine gaming license revoked by

25  this state or any other jurisdiction for an offense related to

26  slot machine gaming.

27         (b)  The division may deny, declare ineligible, or

28  revoke any occupational license if the applicant for such

29  license or the licensee has been convicted of a felony or

30  misdemeanor in this state, in any other state, or under the

31  laws of the United States, if such felony or misdemeanor is

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 1  related to gambling or bookmaking as contemplated in s.

 2  849.25.

 3         (7)  Fingerprints for all slot machine occupational

 4  license applications shall be taken in a manner approved by

 5  the division and shall be submitted to the Department of Law

 6  Enforcement and the Federal Bureau of Investigation for a

 7  level II criminal records check upon initial application and

 8  every 5 years thereafter. The division may by rule require an

 9  annual or less frequent records check not to exceed every 5

10  years of all renewal applications for a slot machine

11  occupational license. The cost of processing fingerprints and

12  conducting a records check shall be borne by the applicant.

13         (8)  All moneys collected pursuant to this section

14  shall be deposited into the Pari-mutuel Wagering Trust Fund.

15         551.108  Prohibited relationships.--

16         (1)  A person employed by or performing any function on

17  behalf of the division shall not:

18         (a)  Be an officer, director, owner, or employee of any

19  person or entity licensed by the division.

20         (b)  Have or hold any interest, direct or indirect, in

21  or engage in any commerce or business relationship with any

22  person licensed by the division.

23         (2)  A manufacturer or distributor of slot machines

24  shall not enter into any contract with a slot machine licensee

25  which provides for any revenue sharing of any kind or nature

26  which is, directly or indirectly, calculated on the basis of a

27  percentage of slot machine revenues. Any maneuver, shift, or

28  device whereby this provision is violated shall be a violation

29  of this chapter and shall render any such agreement void.

30         (3)  A manufacturer or distributor of slot machines or

31  any equipment necessary for the operation of slot machines or

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 1  an officer, director, or employee of any such manufacturer or

 2  distributor shall not have any ownership or financial interest

 3  in a slot machine license or in any business owned by the slot

 4  machine licensee.

 5         551.109  Prohibited acts.--

 6         (1)  Except as otherwise provided by law and in

 7  addition to any other penalty, any person who intentionally

 8  makes or causes to be made or aids, assists, or procures

 9  another to make a false statement in any report, disclosure,

10  application, or any other document required under this chapter

11  or any rule adopted under this chapter is subject to an

12  administrative fine or civil penalty of up to $10,000.

13         (2)  Except as otherwise provided by law and in

14  addition to any other penalty, any person who possesses a slot

15  machine without the license required by this chapter or who

16  possesses a slot machine at any location other than at the

17  slot machine licensee facility is subject to an administrative

18  fine or civil penalty of up to $10,000.

19         (3)  Except as otherwise provided by law and in

20  addition to any other penalty, any person who intentionally

21  excludes, or takes any action in an attempt to exclude,

22  anything or its value from the deposit, counting, collection,

23  or computation of revenues from slot machine activity is

24  subject to an administrative fine or civil penalty of up to

25  $25,000.

26         (4)  Any person who, with intent to manipulate the

27  outcome, payoff, or operation of a slot machine by physical

28  tampering, or by use of any object, instrument, or device,

29  whether mechanical, electrical, magnetic, or involving other

30  means, manipulates the outcome, payoff, or operation of a slot

31  

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 1  machine commits a felony of the third degree, punishable as

 2  provided in s. 775.082, s. 775.083, or s. 775.084.

 3         (5)  All penalties imposed and collected must be

 4  deposited into the Pari-mutuel Wagering Trust Fund in the

 5  department.

 6         551.110  Illegal devices.--Notwithstanding any

 7  provision of law to the contrary, no slot machine

 8  manufactured, sold, distributed, possessed, or operated

 9  according to the provisions of this chapter shall be

10  considered unlawful.

11         551.111  Exclusions of certain persons.--

12         (1)  In addition to the power to exclude certain

13  persons from any facility of a slot machine licensee in this

14  state, the division may exclude any person from any facility

15  of a slot machine licensee in this state for conduct that

16  would constitute, if the person were a licensee, a violation

17  of this chapter or the rules of the division. The division may

18  exclude from any facility of a slot machine licensee any

19  person who has been ejected from a facility of a slot machine

20  licensee in this state or who has been excluded from any

21  facility of a slot machine licensee or gaming facility in

22  another state by the governmental department, agency,

23  commission, or authority exercising regulatory jurisdiction

24  over the gaming in such other state.

25         (2)  This section shall not be construed to abrogate

26  the common law right of a slot machine licensee to exclude a

27  patron absolutely in this state.

28         (3)  The division may authorize any person who has been

29  ejected or excluded from a facility of a slot machine licensee

30  in this state or another state to attend a facility of a slot

31  machine licensee in this state upon a finding that the

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 1  attendance of such person at a facility of a slot machine

 2  licensee would not be adverse to the public interest or to the

 3  integrity of the industry; however, this section shall not be

 4  construed to abrogate the common law right of a slot machine

 5  licensee to exclude a patron absolutely in this state.

 6         551.112  Minors prohibited from playing slot

 7  machines.--

 8         (1)  A slot machine licensee or agent or employee of a

 9  slot machine licensee shall not:

10         (a)  Allow a person who has not attained 21 years of

11  age to play any slot machine.

12         (b)  Allow a person who has not attained 21 years of

13  age access to the designated slot machine gaming area of a

14  facility of a slot machine licensee.

15         (c)  Allow a person who has not attained 21 years of

16  age to be employed in any position allowing or requiring

17  access to the designated slot machine gaming area of a

18  facility of a slot machine licensee.

19         (2)  No person licensed under this chapter, or any

20  agent or employee of a licensee under this chapter, shall

21  intentionally allow a person who has not attained 21 years of

22  age to play or operate a slot machine or have access to the

23  designated slot machine area of a facility of a slot machine

24  licensee.

25         (3)  The eligible facility shall post clear and

26  conspicuous signage within the designated slot machine gaming

27  areas that states the following:

28             THE PLAYING OF SLOT MACHINES BY PERSONS

29            UNDER THE AGE OF 21 IS AGAINST FLORIDA LAW

30               (SECTION 551.112, FLORIDA STATUTES).

31             PROOF OF AGE MAY BE REQUIRED AT ANYTIME

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 1                  A PERSON IS WITHIN THIS AREA.

 2         551.113  Designated slot machine gaming areas.--

 3         (1)  A slot machine licensee may make available for

 4  play slot machines within its designated slot machine gaming

 5  areas.

 6         (2)  A slot machine licensee shall not allow any

 7  automated teller machine or similar device designed to provide

 8  credit or dispense cash to be located on the property of the

 9  facilities of the slot machine licensee.

10         (3)  A slot machine licensee shall not make any loan or

11  provide credit or advance cash to enable a person to play a

12  slot machine.

13         (4)  The slot machine operator shall display

14  pari-mutuel races or games within the designated slot machine

15  gaming areas and offer within the designated slot machine

16  gaming areas the ability for patrons to engage in pari-mutuel

17  wagering on live and simulcast races conducted or offered to

18  patrons of the eligible facility.

19         (5)  No complimentary alcoholic beverages shall be

20  served to patrons within the designated slot machine gaming

21  areas.

22         (6)  The slot machine operator shall offer training to

23  employees on responsible gaming and shall work with the

24  compulsive gambling treatment program within the Mental Health

25  Program Office of the Department of Children and Family

26  Services to recognize problem gaming situations and to

27  implement responsible gaming programs and practices.

28         (7)  The division shall require the posting of signs in

29  the designated slot machine gaming areas warning of the risks

30  and dangers of gambling, showing the odds of winning, and

31  informing patrons of the toll-free telephone number available

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 1  to provide information and referral services regarding

 2  compulsive or problem gambling.

 3         (8)  The division shall establish standards of approval

 4  for the physical layout and construction of any facility or

 5  building devoted to slot machine operations. The standards

 6  shall require that the slot machine gaming area be connected

 7  to and contiguous within the operation of the live gaming

 8  facility.  It is the intent of the Legislature that each

 9  facility:

10         (a)  Possess superior consumer amenities and

11  conveniences to encourage and attract the patronage of

12  tourists and other visitors from across the region, state, and

13  nation.

14         (b)  Have adequate motor vehicle parking facilities to

15  satisfy patron requirements.

16         (c)  Have a physical layout and location that

17  facilitates access to the pari-mutuel portion of the facility.

18         551.114  Days and hours of operation.--Slot machine

19  gaming areas may be open 365 days a year. The slot machine

20  gaming areas may be open for a maximum of 16 hours per day.

21         551.116  Penalties.--The division may revoke or suspend

22  any license issued under this chapter upon the willful

23  violation by the licensee of any provision of this chapter or

24  of any rule adopted under this chapter. In lieu of suspending

25  or revoking a license, the division may impose a civil penalty

26  against the licensee for a violation of this chapter or any

27  rule adopted by the division. Except as otherwise provided in

28  this chapter, the penalty so imposed may not exceed $1,000 for

29  each count or separate offense. All penalties imposed and

30  collected must be deposited into the Pari-mutuel Wagering

31  Trust Fund in the department.

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 1         551.117  Compulsive gambling program.--The division may

 2  contract for provision of services related to the prevention

 3  and treatment of compulsive and addictive gambling. The terms

 4  of any contract for the provision of such services shall

 5  include accountability standards that must be met by any

 6  private provider. The failure of any private provider to meet

 7  any material terms of the contract, including the

 8  accountability standards, shall constitute a breach of

 9  contract or grounds for nonrenewal. The division may consult

10  with the Department of the Lottery in the development of the

11  program and the development and analysis of any procurement

12  for contractual services for its compulsive or addictive

13  gambling prevention and treatment program.  The compulsive or

14  addictive gambling prevention and treatment program shall be

15  funded from the annual nonrefundable regulatory fee provided

16  for in this section. The licensee must pay to the division an

17  annual nonrefundable regulatory fee of $100 per slot machine,

18  on July 1, of each year, which shall be deposited into the

19  Pari-mutuel Wagering Trust Fund.

20         551.118  Catering license.--A slot machine retailer is

21  entitled to a caterer's license pursuant to s. 565.02 on days

22  in which the pari-mutuel facility is open to the public for

23  slot machine game play as authorized by this chapter.

24         551.119  Rulemaking.--

25         (1)  The division may adopt rules pursuant to ss.

26  120.536(1) and 120.54 to implement the provisions of this

27  chapter.

28         (2)  In order to expedite the licensing requirements of

29  this chapter, the division may adopt emergency rules pursuant

30  to s. 120.54(4).  The Legislature finds that such emergency

31  rules are necessary for the preservation of the rights and

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 1  welfare of the people in order to provide additional funds to

 2  the benefit of the public.  Therefore, in adopting such

 3  emergency rules, the division need not make the findings

 4  required by s. 120.54(4)(a).

 5         551.120  Conduct of referendum election for slot

 6  machines.--

 7         (1)  Any person who possesses the qualifications

 8  prescribed by s. 23, Art. X of the State Constitution may

 9  apply to the division for a license to conduct slot machine

10  operations under this chapter. Applications for a license to

11  conduct slot machine operations shall be subject to the

12  provisions of this chapter. Such license does not authorize

13  any operation of slot machines until approved by the majority

14  of electors participating in a referendum election in the

15  county in which the applicant proposes to conduct slot machine

16  activities.

17         (2)  Each referendum held under the provisions of this

18  section shall be held in accordance with the provisions of

19  chapters 97-106, except as otherwise provided in this chapter.

20  A referendum may be held for more than one licensee for slot

21  machine operation in a given county if the written

22  applications for each such licensee under s. 551.121 are filed

23  simultaneously or are otherwise filed within the times

24  specified by said provision to allow the conduct of a single

25  referendum. The expense of such referendum shall be borne by

26  the licensee or licensees requesting the referendum. For

27  purposes of this section, the expense of conducting a

28  referendum is the incremental expense in excess of routine

29  operating expenses that are incurred by the governing body,

30  the supervisor of elections, and other essential governmental

31  entities in conducting the election. If the referendum is

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 1  being held at the request of more than one licensee, each

 2  applicant shall be responsible for an equal share of the

 3  expense.

 4         551.121  Elections for ratification of slot machine

 5  licenses.--

 6         (1)  The holder of any license to conduct slot machine

 7  operations may have the question of whether that slot machine

 8  license will be ratified or rejected submitted to the electors

 9  of the county designated in s. 23, Art. X of the State

10  Constitution. Such question shall be submitted to the electors

11  for approval or rejection at a special, primary, or general

12  election. The licensee shall present a written application to

13  the governing body of the county that requests a referendum

14  election in that county pursuant to s. 551.120 and this

15  section, accompanied by a certified copy of the license

16  granted by the division. Within 30 days after receipt of the

17  application and license, the governing body shall order a

18  special referendum election. The election shall be scheduled

19  for no sooner than 21 days nor more than 90 days from the date

20  on which it is ordered. Provided, the referendum election will

21  be held in conjunction with the primary election if the

22  application is received within not more than 90 nor less than

23  60 days of such election or in conjunction with the general

24  election if the application is received not more than 90 nor

25  less than 60 days prior to that election. The governing body

26  shall give notice of the referendum election by publishing

27  notice once each week for 2 consecutive weeks in one or more

28  newspapers of general circulation in the county.

29         (2)(a)  Once the slot machine license has been issued,

30  the licensee shall have a period of 2 years in which to

31  request a referendum election pursuant to this section or such

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 1  license shall become void and shall be cancelled. If the

 2  majority of the electors voting on the question of

 3  ratification or rejection of the slot machine licenses vote

 4  for such ratification, such license shall become effective

 5  immediately, and the holder of the license may conduct slot

 6  machine operations upon complying with the other provision of

 7  this chapter. If the majority of electors voting on the

 8  question of ratification or rejection of any slot machine

 9  licenses ratify the license, such license shall become

10  effective, and the licensee shall pay to the division within

11  10 days the license fee set out in this chapter.

12         (b)  If the majority of electors voting on the question

13  of ratification or rejection of any slot machine licenses

14  reject the ratification of the license, such license shall

15  become void. The governing board of the county shall

16  immediately certify the results of the election to the

17  division.

18         Section 3.  (1)  Sixty-four full-time equivalent

19  positions are authorized and the sums of $4,792,259 in

20  recurring and $4,036,486 in nonrecurring funds are hereby

21  appropriated from the Pari-mutuel Wagering Trust Fund in the

22  Department of Business and Professional Regulation for the

23  purpose of carrying out all regulatory activities provided

24  herein.  The Executive Office of the Governor shall place

25  these funds and positions in reserve until such time as the

26  Department of Business and Professional Regulation submits an

27  expenditure plan for approval to the Executive Office of the

28  Governor, and the chair and vice chair of the Legislative

29  Budget Commission in accordance with the provisions of section

30  216.177, Florida Statutes.

31  

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 1         (2)  The sums of $2,634,349 in recurring and $1,814,916

 2  in nonrecurring funds are hereby appropriated from the

 3  Pari-mutuel Wagering Trust Fund in the Department of Business

 4  and Professional Regulation for transfer to the Department of

 5  Law Enforcement for the purpose of investigations,

 6  intelligence gathering, background investigations, and any

 7  other responsibilities as provided for herein.  Fifty-seven

 8  full-time equivalent positions are authorized and the sums of

 9  $2,634,349 in recurring and $1,814,916 in nonrecurring funds

10  are hereby appropriated from the Operating Trust Fund in the

11  Department of Law Enforcement for the purpose of

12  investigations, intelligence gathering, background

13  investigations, an any other responsibilities as provided for

14  herein.  The Executive Office of the Governor shall place

15  these funds and positions in reserve until such time as the

16  Department of Law Enforcement submits an expenditure plan for

17  approval to the Executive Office of the Governor and the chair

18  and vice chair of the Legislative Budget Commission in

19  accordance with the provisions of section 216.177, Florida

20  Statutes.

21         (3)  The sums of $608,118 in recurring and $24,498 in

22  nonrecurring funds are hereby appropriated from the

23  Pari-mutuel Wagering Trust Fund in the Department of Business

24  and Professional Regulation for transfer to the Office of the

25  State Attorney, 17th Judicial Circuit, for the purpose of

26  prosecution of offenses associated with gaming operations.

27  Ten full-time equivalent positions are authorized and the sums

28  of $608,118 in recurring and $24,498 in nonrecurring funds are

29  hereby appropriated from the Grants and Donations Trust Fund

30  in the Office of the State Attorney, 17th Judicial Circuit,

31  for the purpose of prosecution of offenses associated with

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 1  gaming operations.  The Executive Office of the Governor shall

 2  place these funds and positions in reserve until such time as

 3  the Office of the State Attorney, 17th Judicial Circuit,

 4  submits an expenditure plan for approval to the Executive

 5  Office of the Governor and the chair and vice chair of the

 6  Legislative Budget Commission in accordance with the

 7  provisions of section 216.177, Florida Statutes.

 8         (4)  The sum of $1 million is hereby appropriated from

 9  the Pari-mutuel Wagering Trust Fund from revenues received

10  pursuant to section 551.117, Florida Statutes, in the

11  Department of Business and Professional Regulation for

12  contract services related to the prevention and treatment of

13  compulsive and addictive gambling.

14         Section 4.  Except as otherwise expressly provided in

15  this act, this act shall take effect upon becoming a law.

16  

17          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
18                      CS/CS Senate Bill 1174

19                                 

20  The initial, one-time licensing fee for slot facilities is
    increased from $1 million to $4 million to pay for the
21  regulatory costs of the Department of Business and
    Professional Regulation (DBPR), Florida Department of Law
22  Enforcement (FDLE), and the 17th Circuit State Attorney's
    Office.
23  
    DBPR is required to contract for a compulsive gambling
24  prevention and treatment program. A fee of $100 per slot
    machine is assessed to fund the program.
25  
    Appropriations and new positions are provided for DBPR, FDLE,
26  and the 17th Circuit State Attorney's Office to meet the
    workload requirements of this bill. The funds must be held in
27  reserve and released on the recommendation of the Governor and
    the approval of the Legislative Budget Commission pursuant to
28  s. 216.177, Florida Statutes. Funds are also appropriated for
    the compulsive gambling prevention and treatment program.
29  
    A condition of licensure as a slot facility is changed from a
30  requirement that the facility conduct as many live races or
    games as in 2002 or 2003 to a requirement that the facility
31  conduct a full schedule of live races or games, as defined in
    550.002(11).
                                  33

CODING: Words stricken are deletions; words underlined are additions.