HB 0001B

CS

CHAMBER ACTION

1	The Fiscal Council recommends the following:
2
3	Council/Committee Substitute
4	Remove the entire bill and insert:
5
6	A bill to be entitled
7	An act relating to slot machine gaming; creating ch. 551,
8	F.S.; implementing s. 23, Art. X of the State
9	Constitution; authorizing slot machines and slot machine
10	gaming within certain pari-mutuel facilities located in
11	Miami-Dade and Broward Counties upon approval by a local
12	referendum; providing definitions; providing powers and
13	duties of the Division of Pari-mutuel Wagering of the
14	Department of Business and Professional Regulation, the
15	Department of Law Enforcement, and local law enforcement
16	agencies; providing for licensure to conduct slot machine
17	gaming; providing for temporary licensure; providing
18	licensing conditions on holders of thoroughbred pari-
19	mutuel wagering permits; providing for slot machine
20	licensure renewal; providing for a license fee and tax
21	rate; providing for payment procedures; providing
22	penalties; providing for slot machine occupational
23	licenses and application fees; providing penalties;
24	prohibiting certain relationships; prohibiting certain
25	acts and providing penalties; providing an exception to
26	prohibitions relating to slot machines; providing for the
27	exclusion of certain persons from facilities; prohibiting
28	persons under 21 years of age from slot machine gaming
29	areas or playing slot machines; providing requirements for
30	slot machine gaming areas; providing for days and hours of
31	operation; providing penalties; providing a compulsive or
32	addictive gambling prevention program; providing for
33	funding; providing for a caterer's license; specifying
34	prohibited activities and devices; prohibiting automated
35	teller machines on the property of a slot machine
36	licensee; providing for rulemaking; amending s. 849.15,
37	F.S.; providing for transportation of certain gaming
38	devices in accordance with federal law; amending s.
39	895.02, F.S.; providing that specified violations related
40	to slot machine gaming constitute racketeering activity;
41	providing that certain debt incurred in violation of
42	specified provisions relating to slot machine gaming
43	constitutes unlawful debt; providing for preemption;
44	authorizing additional positions and providing
45	appropriations; providing for use of funds; amending s.
46	215.22, F.S.; exempting taxes imposed on slot machine
47	revenues from specified service charges; providing for use
48	of certain unreserved funds in the Pari-mutuel Wagering
49	Trust Fund; providing for repayment of such funds;
50	providing an effective date.
51
52	Be It Enacted by the Legislature of the State of Florida:
53
54	Section 1.  Chapter 551, Florida Statutes, consisting of
55	sections 551.101, 551.102, 551.103, 551.104, 551.1045, 551.105,
56	551.106, 551.107, 551.108, 551.109, 551.111, 551.112, 551.113,
57	551.114, 551.116, 551.117, 551.118, 551.119, 551.121, and
58	551.122, is created to read:
59	CHAPTER 551
60	SLOT MACHINES
61	551.101  Slot machine gaming authorized.--Any licensed
62	pari-mutuel facility located in Miami-Dade County or Broward
63	County existing at the time of adoption of s. 23, Art. X of the
64	State Constitution that has conducted live racing or games
65	during calendar years 2002 and 2003 may possess slot machines
66	and conduct slot machine gaming at the location where the pari-
67	mutuel permitholder is authorized to conduct pari-mutuel
68	wagering activities pursuant to such permitholder's valid pari-
69	mutuel permit provided that a majority of voters in a countywide
70	referendum have approved slot machines at such facility in the
71	respective county. Notwithstanding any other provision of law,
72	it is not a crime for a person to participate in slot machine
73	gaming at a pari-mutuel facility licensed to possess and conduct
74	slot machine gaming or to participate in slot machine gaming
75	described in this chapter.
76	551.102  Definitions.--As used in this chapter, the term:
77	(1)  "Distributor" means any person who sells, leases, or
78	offers or otherwise provides, distributes, or services any slot
79	machine or associated equipment for use or play of slot machines
80	in this state. A manufacturer may be a distributor within the
81	state.
82	(2)  "Designated slot machine gaming area" means the area
83	or areas of a facility of a slot machine licensee in which slot
84	machine gaming may be conducted in accordance with the
85	provisions of this chapter.
86	(3)  "Division" means the Division of Pari-mutuel Wagering
87	of the Department of Business and Professional Regulation.
88	(4)  "Eligible facility" means any licensed pari-mutuel
89	facility located in Miami-Dade County or Broward County existing
90	at the time of adoption of s. 23, Art. X of the State
91	Constitution that has conducted live racing or games during
92	calendar years 2002 and 2003 and has been approved by a majority
93	of voters in a countywide referendum to have slot machines at
94	such facility in the respective county.
95	(5)  "Manufacturer" means any person who manufactures,
96	builds, rebuilds, fabricates, assembles, produces, programs,
97	designs, or otherwise makes modifications to any slot machine or
98	associated equipment for use or play of slot machines in this
99	state for gaming purposes. A manufacturer may be a distributor
100	within the state.
101	(6)  "Progressive system" means a computerized system
102	linking slot machines in one or more licensed facilities within
103	this state and offering one or more common progressive payouts
104	based on the amounts wagered.
105	(7)  "Slot machine" means any mechanical or electrical
106	contrivance, terminal that may or may not be capable of
107	downloading slot games from a central server system, machine, or
108	other device that, upon insertion of a coin, bill, ticket,
109	token, or similar object or upon payment of any consideration
110	whatsoever, including the use of any electronic payment system
111	except a credit card or debit card, is available to play or
112	operate, the play or operation of which, whether by reason of
113	skill or application of the element of chance or both, may
114	deliver or entitle the person or persons playing or operating
115	the contrivance, terminal, machine, or other device to receive
116	cash, billets, tickets, tokens, or electronic credits to be
117	exchanged for cash or to receive merchandise or anything of
118	value whatsoever, whether the payoff is made automatically from
119	the machine or manually. The term includes associated equipment
120	necessary to conduct the operation of the contrivance, terminal,
121	machine, or other device. Slot machines may use spinning reels,
122	video displays, or both. A slot machine is not a "coin-operated
123	amusement machine" as defined in s. 212.02(24) or an amusement
124	game or machine as described in s. 849.161, and slot machines
125	are not subject to the tax imposed by s. 212.05(1)(h).
126	(8)  "Slot machine facility" means a facility at which slot
127	machines as defined in this chapter are lawfully offered for
128	play.
129	(9)  "Slot machine license" means a license issued by the
130	division authorizing a pari-mutuel permitholder to place and
131	operate slot machines as provided by s. 23, Art. X of the State
132	Constitution, the provisions of this chapter, and division
133	rules.
134	(10)  "Slot machine licensee" means a pari-mutuel
135	permitholder who holds a license issued by the division pursuant
136	to this chapter that authorizes such person to possess a slot
137	machine within facilities specified in s. 23, Art. X of the
138	State Constitution and allows slot machine gaming.
139	(11)  "Slot machine operator" means a person employed or
140	contracted by the owner of a licensed facility to conduct slot
141	machine gaming at that licensed facility.
142	(12)  "Slot machine revenues" means the total of all cash
143	and property received by the slot machine licensee from the
144	operation of slot machines less the amount of cash, cash
145	equivalents, credits, and prizes paid to winners of slot machine
146	gaming.
147	551.103  Powers and duties of the division and law
148	enforcement.--
149	(1)  The division shall adopt, pursuant to the provisions
150	of ss. 120.536(1) and 120.54, all rules necessary to implement,
151	administer, and regulate slot machine gaming as authorized in
152	this chapter. Such rules must include:
153	(a)  Procedures for applying for a slot machine license and
154	renewal of a slot machine license.
155	(b)  Technical requirements and the qualifications
156	contained in this chapter that are necessary to receive a slot
157	machine license or slot machine occupational license.
158	(c)  Procedures to scientifically test and technically
159	evaluate slot machines for compliance with this chapter. The
160	division may contract with an independent testing laboratory to
161	conduct any necessary testing under this section. The
162	independent testing laboratory must have a national reputation
163	which is demonstrably competent and qualified to scientifically
164	test and evaluate slot machines for compliance with this chapter
165	and to otherwise perform the functions assigned to it in this
166	chapter. An independent testing laboratory shall not be owned or
167	controlled by a licensee. The use of an independent testing
168	laboratory for any purpose related to the conduct of slot
169	machine gaming by a licensee under this chapter shall be made
170	from a list of one or more laboratories approved by the
171	division.
172	(d)  Procedures relating to slot machine revenues,
173	including verifying and accounting for such revenues, auditing,
174	and collecting taxes and fees consistent with this chapter.
175	(e)  Procedures for regulating, managing, and auditing the
176	operation, financial data, and program information relating to
177	slot machine gaming that allow the division and the Department
178	of Law Enforcement to audit the operation, financial data, and
179	program information of a slot machine licensee, as required by
180	the division or the Department of Law Enforcement, and provide
181	the division and the Department of Law Enforcement with the
182	ability to monitor, at any time on a real-time basis, wagering
183	patterns, payouts, tax collection, and compliance with any rules
184	adopted by the division for the regulation and control of slot
185	machines operated under this chapter. Such continuous and
186	complete access, at any time on a real-time basis, shall include
187	the ability of either the division or the Department of Law
188	Enforcement to suspend play immediately on particular slot
189	machines if monitoring of the facilities-based computer system
190	indicates possible tampering or manipulation of those slot
191	machines or the ability to suspend play immediately of the
192	entire operation if the tampering or manipulation is of the
193	computer system itself. The division shall notify the Department
194	of Law Enforcement or the Department of Law Enforcement shall
195	notify the division, as appropriate, whenever there is a
196	suspension of play under this paragraph. The division and the
197	Department of Law Enforcement shall exchange such information
198	necessary for and cooperate in the investigation of the
199	circumstances requiring suspension of play under this paragraph.
200	(f)  Procedures for requiring each licensee at his or her
201	own cost and expense to supply the division with a bond having
202	the penal sum of $2 million payable to the Governor and his or
203	her successors in office for the licensee's first year of slot
204	machine operations. Annually thereafter, the licensee shall file
205	a bond having a penal sum that is determined each year by the
206	division pursuant to rules adopted by the division and that
207	approximates the anticipated state revenues from the licensee's
208	slot machine operation; however, the bond may not in any case be
209	less than $2 million. Any bond shall be issued by a surety or
210	sureties approved by the division and the Chief Financial
211	Officer, conditioned to faithfully make the payments to the
212	Chief Financial Officer in his or her capacity as treasurer of
213	the division. The licensee shall be required to keep its books
214	and records and make reports as provided in this chapter and to
215	conduct its slot machine operations in conformity with this
216	chapter and all other provisions of law. Such bond shall be
217	separate and distinct from the bond required in s. 550.125.
218	(g)  Procedures for requiring licensees to maintain
219	specified records and submit any data, information, record, or
220	report, including financial and income records, required by this
221	chapter or determined by the division to be necessary to the
222	proper implementation and enforcement of this chapter.
223	(h)  A requirement that the payout percentage of a slot
224	machine be no less than 85 percent.
225	(i)  Minimum standards for security of the facilities,
226	including floor plans, security cameras, and other security
227	equipment.
228	(2)  The division shall conduct such investigations
229	necessary to fulfill its responsibilities under the provisions
230	of this chapter.
231	(3)  The Department of Law Enforcement and local law
232	enforcement agencies shall have concurrent jurisdiction to
233	investigate criminal violations of this chapter and may
234	investigate any other criminal violation of law occurring at the
235	facilities of a slot machine licensee, and such investigations
236	may be conducted in conjunction with the appropriate state
237	attorney.
238	(4)(a)  The division, the Department of Law Enforcement,
239	and local law enforcement agencies shall have unrestricted
240	access to the slot machine licensee's facility at all times and
241	shall require of each slot machine licensee strict compliance
242	with the laws of this state relating to the transaction of such
243	business. The division, the Department of Law Enforcement, and
244	local law enforcement agencies may:
245	1.  Inspect and examine premises where slot machines are
246	offered for play.
247	2.  Inspect slot machines and related equipment and
248	supplies.
249	(b)  In addition, the division may:
250	1.  Collect taxes, assessments, fees, and penalties.
251	2.  Deny, revoke, suspend, or place conditions on the
252	license of a person who violates any provision of this chapter
253	or rule adopted pursuant thereto.
254	(5)  The division shall revoke or suspend the license of
255	any person who is no longer qualified or who is found, after
256	receiving a license, to have been unqualified at the time of
257	application for the license.
258	(6)  This section does not:
259	(a)  Prohibit the Department of Law Enforcement or any law
260	enforcement authority whose jurisdiction includes a licensed
261	facility from conducting investigations of criminal activities
262	occurring at the facility of the slot machine licensee;
263	(b)  Restrict access to the slot machine licensee's
264	facility by the Department of Law Enforcement or any local law
265	enforcement authority whose jurisdiction includes the slot
266	machine licensee's facility; or
267	(c)  Restrict access by the Department of Law Enforcement
268	or local law enforcement authorities to information and records
269	necessary to the investigation of criminal activity that are
270	contained within the slot machine licensee's facility.
271	551.104  License to conduct slot machine gaming.--
272	(1)  Upon application and a finding by the division after
273	investigation that the application is complete and the applicant
274	is qualified and payment of the initial license fee, the
275	division may issue a license to conduct slot machine gaming in
276	the designated slot machine gaming area of the eligible
277	facility. Once licensed, slot machine gaming may be conducted
278	subject to the requirements of this chapter and rules adopted
279	pursuant thereto.
280	(2)  An application may be approved by the division only
281	after the voters of the county where the applicant's facility is
282	located have authorized by referendum slot machines within pari-
283	mutuel facilities in that county as specified in s. 23, Art. X
284	of the State Constitution.
285	(3)  A slot machine license may be issued only to a
286	licensed pari-mutuel permitholder, and slot machine gaming may
287	be conducted only at the eligible facility at which the
288	permitholder is authorized under its valid pari-mutuel wagering
289	permit to conduct pari-mutuel wagering activities.
290	(4)  As a condition of licensure and to maintain continued
291	authority for the conduct of slot machine gaming, the slot
292	machine licensee shall:
293	(a)  Continue to be in compliance with this chapter.
294	(b)  Continue to be in compliance with chapter 550, where
295	applicable, and maintain the pari-mutuel permit and license in
296	good standing pursuant to the provisions of chapter 550.
297	Notwithstanding any contrary provision of law and in order to
298	expedite the operation of slot machines at eligible facilities,
299	any eligible facility shall be entitled within 60 days after the
300	effective date of this act to amend its 2006-2007 pari-mutuel
301	wagering operating license issued by the division under ss.
302	550.0115 and 550.01215. The division shall issue a new license
303	to the eligible facility to effectuate any approved change.
304	(c)  Conduct no fewer than a full schedule of live racing
305	or games as defined in s. 550.002(11). A permitholder's
306	responsibility to conduct such number of live races or games
307	shall be reduced by the number of races or games that could not
308	be conducted due to the direct result of fire, war, hurricane,
309	or other disaster or event beyond the control of the
310	permitholder.
311	(d)  Upon approval of any changes relating to the pari-
312	mutuel permit by the division, be responsible for providing
313	appropriate current and accurate documentation on a timely basis
314	to the division in order to continue the slot machine license in
315	good standing. Changes in ownership or interest of a slot
316	machine license of 5 percent or more of the stock or other
317	evidence of ownership or equity in the slot machine license or
318	any parent corporation or other business entity that in any way
319	owns or controls the slot machine license shall be approved by
320	the division prior to such change, unless the owner is an
321	existing holder of that license who was previously approved by
322	the division. Changes in ownership or interest of a slot machine
323	license of less than 5 percent, unless such change results in a
324	cumulative total of 5 percent or more, shall be reported to the
325	division within 20 days after the change. The division may then
326	conduct an investigation to ensure that the license is properly
327	updated to show the change in ownership or interest. No
328	reporting is required if the person is holding 5 percent or less
329	equity or securities of a corporate owner of the slot machine
330	licensee that has its securities registered pursuant to s. 12 of
331	the Securities Exchange Act of 1934, 15 U.S.C. ss. 78a-78kk, and
332	if such corporation or entity files with the United States
333	Securities and Exchange Commission the reports required by s. 13
334	of that act or if the securities of the corporation or entity
335	are regularly traded on an established securities market in the
336	United States. A change in ownership or interest of less than 5
337	percent which results in a cumulative ownership or interest of 5
338	percent or more shall be approved by the division prior to such
339	change unless the owner is an existing holder of the license who
340	was previously approved by the division.
341	(e)  Allow the division and the Department of Law
342	Enforcement unrestricted access to and right of inspection of
343	facilities of a slot machine licensee in which any activity
344	relative to the conduct of slot machine gaming is conducted.
345	(f)  Ensure that the facilities-based computer system that
346	the licensee will use for operational and accounting functions
347	of the slot machine facility is specifically structured to
348	facilitate regulatory oversight. The facilities-based computer
349	system shall be designed to provide the division and the
350	Department of Law Enforcement with the ability to monitor, at
351	any time on a real-time basis, the wagering patterns, payouts,
352	tax collection, and such other operations as necessary to
353	determine whether the facility is in compliance with statutory
354	provisions and rules adopted by the division for the regulation
355	and control of slot machine gaming. The division and the
356	Department of Law Enforcement shall have complete and continuous
357	access to this system. Such access shall include the ability of
358	either the division or the Department of Law Enforcement to
359	suspend play immediately on particular slot machines if
360	monitoring of the system indicates possible tampering or
361	manipulation of those slot machines or the ability to suspend
362	play immediately of the entire operation if the tampering or
363	manipulation is of the computer system itself. The computer
364	system shall be reviewed and approved by the division to ensure
365	necessary access, security, and functionality. The division may
366	adopt rules to provide for the approval process.
367	(g)  Ensure that each slot machine is protected from
368	manipulation or tampering to affect the random probabilities of
369	winning plays. The division or the Department of Law Enforcement
370	shall have the authority to suspend play upon reasonable
371	suspicion of any manipulation or tampering. When play has been
372	suspended on any slot machine, the division or the Department of
373	Law Enforcement may examine any slot machine to determine
374	whether the machine has been tampered with or manipulated and
375	whether the machine should be returned to operation.
376	(h)  Submit a security plan, including the facilities'
377	floor plan, the locations of security cameras, and a listing of
378	all security equipment that is capable of observing and
379	electronically recording activities being conducted in the
380	facilities of the slot machine licensee. The security plan must
381	meet the minimum security requirements as determined by the
382	division under s. 551.103(1)(i) and be implemented prior to
383	operation of slot machine gaming. The slot machine licensee's
384	facilities must adhere to the security plan at all times. Any
385	changes to the security plan must be submitted by the licensee
386	to the division prior to implementation. The division shall
387	furnish copies of the security plan and changes in the plan to
388	the Department of Law Enforcement.
389	(i)  Create and file with the division a written policy
390	for:
391	1.  Creating opportunities to purchase from vendors in this
392	state, including minority vendors.
393	2.  Creating opportunities for employment of residents of
394	this state, including minority residents.
395	3.  Ensuring opportunities for construction services from
396	minority contractors.
397	4.  Ensuring that opportunities for employment are offered
398	on an equal, nondiscriminatory basis.
399	5.  Training for employees on responsible gaming and
400	working with a compulsive or addictive gambling prevention
401	program to further its purposes as provided for in s. 551.118.
402
403	The slot machine licensee shall use the Internet-based job-
404	listing system of the Agency for Workforce Innovation in
405	advertising employment opportunities. Beginning in June 2007,
406	each slot machine licensee shall provide an annual report to the
407	division containing information indicating compliance with this
408	paragraph in regard to minority persons.
409	(j)  Ensure that the payout percentage of a slot machine is
410	no less than 85 percent.
411	(5)  A slot machine license is not transferable.
412	(6)  A slot machine licensee shall keep and maintain
413	permanent daily records of its slot machine operation and shall
414	maintain such records for a period of not less than 5 years.
415	These records must include all financial transactions and
416	contain sufficient detail to determine compliance with the
417	requirements of this chapter. All records shall be available for
418	audit and inspection by the division, the Department of Law
419	Enforcement, or other law enforcement agencies during the
420	licensee's regular business hours.
421	(7)  A slot machine licensee shall file with the division a
422	monthly report containing the required records of such slot
423	machine operation. The required reports shall be submitted on
424	forms prescribed by the division and shall be due at the same
425	time as the monthly pari-mutuel reports are due to the division,
426	and the reports shall be deemed public records once filed.
427	(8)  A slot machine licensee shall file with the division
428	an audit of the receipt and distribution of all slot machine
429	revenues provided by an independent certified public accountant
430	verifying compliance with all financial and auditing provisions
431	of this chapter and the associated rules adopted under this
432	chapter. The audit must include verification of compliance with
433	all statutes and rules regarding all required records of slot
434	machine operations. Such audit shall be filed within 60 days
435	after the completion of the permitholder's pari-mutuel meet.
436	(9)  The division may share any information with the
437	Department of Law Enforcement, any other law enforcement agency
438	having jurisdiction over slot machine gaming or pari-mutuel
439	activities, or any other state or federal law enforcement agency
440	the division or the Department of Law Enforcement deems
441	appropriate. Any law enforcement agency having jurisdiction over
442	slot machine gaming or pari-mutuel activities may share any
443	information obtained or developed by it with the division.
444	(10)(a)  No slot machine license or renewal thereof shall
445	be issued to an applicant holding a permit under chapter 550 to
446	conduct pari-mutuel wagering meets of thoroughbred racing unless
447	the applicant has on file with the division a binding written
448	agreement between the applicant and the Florida Horsemen's
449	Benevolent and Protective Association, Inc., governing the
450	payment of purses on live thoroughbred races conducted at the
451	licensee's pari-mutuel facility. In addition, no slot machine
452	license or renewal thereof shall be issued to such an applicant
453	unless the applicant has on file with the division a binding
454	written agreement between the applicant and the Florida
455	Thoroughbred Breeders' Association, Inc., governing the payment
456	of breeders', stallion, and special racing awards on live
457	thoroughbred races conducted at the licensee's pari-mutuel
458	facility. The agreement governing purses and the agreement
459	governing awards may direct the payment of such purses and
460	awards from revenues generated by any wagering or gaming the
461	applicant is authorized to conduct under Florida law. All purses
462	and awards shall be subject to the terms of chapter 550. All
463	sums for breeders', stallion, and special racing awards shall be
464	remitted monthly to the Florida Thoroughbred Breeders'
465	Association, Inc., for the payment of awards subject to the
466	administrative fee authorized in s. 550.2625(3).
467	(b)  The division shall suspend a slot machine license if
468	one or more of the agreements required under paragraph (a) are
469	terminated or otherwise cease to operate or if the division
470	determines that the licensee is materially failing to comply
471	with the terms of such an agreement. Any such suspension shall
472	take place in accordance with chapter 120.
473	(c)1.  If an agreement required under paragraph (a) cannot
474	be reached prior to the initial issuance of the slot machine
475	license, either party may request arbitration or, in the case of
476	a renewal, if an agreement required under paragraph (a) is not
477	in place 120 days prior to the scheduled expiration date of the
478	slot machine license, the applicant shall immediately ask the
479	American Arbitration Association to furnish a list of 11
480	arbitrators, each of whom shall have at least 5 years of
481	commercial arbitration experience and no financial interest in
482	or prior relationship with any of the parties or their
483	affiliated or related entities or principals. Each required
484	party to the agreement shall select a single arbitrator from the
485	list provided by the American Arbitration Association within 10
486	days of receipt, and the individuals so selected shall choose
487	one additional arbitrator from the list within the next 10 days.
488	2.  If an agreement required under paragraph (a) is not in
489	place 60 days after the request under subparagraph 1. in the
490	case of an initial slot machine license or, in the case of a
491	renewal, 60 days prior to the scheduled expiration date of the
492	slot machine license, the matter shall be immediately submitted
493	to mandatory binding arbitration to resolve the disagreement
494	between the parties. The three arbitrators selected pursuant to
495	subparagraph 1. shall constitute the panel that shall arbitrate
496	the dispute between the parties pursuant to the American
497	Arbitration Association Commercial Arbitration Rules and chapter
498	682.
499	3.  At the conclusion of the proceedings, which shall be no
500	later than 90 days after the request under subparagraph 1. in
501	the case of an initial slot machine license or, in the case of a
502	renewal, 30 days prior to the scheduled expiration date of the
503	slot machine license, the arbitration panel shall present to the
504	parties a proposed agreement that the majority of the panel
505	believes equitably balances the rights, interests, obligations,
506	and reasonable expectations of the parties. The parties shall
507	immediately enter into such agreement, which shall satisfy the
508	requirements of paragraph (a) and permit issuance of the pending
509	annual slot machine license or renewal. The agreement produced
510	by the arbitration panel under this subparagraph shall be
511	effective until the last day of the license or renewal period or
512	until the parties enter into a different agreement. Each party
513	shall pay its respective costs of arbitration and shall pay one-
514	half of the costs of the arbitration panel, unless the parties
515	otherwise agree. If the agreement produced by the arbitration
516	panel under this subparagraph remains in place 120 days prior to
517	the scheduled issuance of the next annual license renewal, then
518	the arbitration process established in this paragraph will begin
519	again.
520	4.  In the event that neither of the agreements required
521	under paragraph (a) are in place by the deadlines established in
522	this paragraph, arbitration regarding each agreement will
523	proceed independently, with separate lists of arbitrators,
524	arbitration panels, arbitration proceedings, and resulting
525	agreements.
526	5.  With respect to the agreement required under paragraph
527	(a) governing the payment of purses, the arbitration and
528	resulting agreement called for under this paragraph shall be
529	limited to the payment of purses from slot machine revenues
530	only.
531	(d)  If any provision of this subsection or its application
532	to any person or circumstance is held invalid, the invalidity
533	does not affect other provisions or applications of this
534	subsection or chapter which can be given effect without the
535	invalid provision or application, and to this end the provisions
536	of this subsection are severable.
537	551.1045  Temporary licenses.--
538	(1)(a)  If, after 180 days following the effective date of
539	this act, the division has not adopted rules to implement the
540	provisions of this chapter, the division shall issue a temporary
541	slot machine license to an applicant if the applicant holds a
542	valid pari-mutuel permit in good standing under chapter 550, the
543	applicant's ownership interests have been previously approved as
544	provided in chapter 550, and the applicant has conducted live
545	racing or games during the calendar years 2002 and 2003. The
546	slot machine license will permit the licensee to conduct slot
547	machine gaming in the designated slot machine gaming areas of
548	the eligible facility.
549	(b)  The temporary license is valid until the division has
550	adopted rules implementing the provisions of this chapter. Once
551	the division has adopted rules implementing the provisions of
552	this chapter, it shall complete review of any filed application
553	and shall issue a license under s. 551.104 if the licensee meets
554	the requirements of this chapter and rules adopted by the
555	division.
556	(2)(a)  A manufacturer or distributor of slot machines who
557	has applied for a license under s. 551.107 shall be issued a
558	temporary business occupational license if it holds a valid
559	license to manufacture or distribute slot machines in a state
560	where gaming is lawful.
561	(b)  The temporary license is valid until the division has
562	adopted rules implementing the provisions of this chapter. Once
563	the division has adopted rules implementing the provisions of
564	this chapter, it shall complete review of any filed application
565	and shall issue a license under s. 551.107 if the licensee meets
566	the requirements of this chapter and rules adopted by the
567	division.
568	(3)  A temporary license issued under this section is
569	nontransferable. Any temporary license issued under this section
570	shall be valid during the pendency of any challenge to the
571	rules.
572	551.105  Slot machine license renewal.--
573	(1)  Slot machine licenses shall be effective for 1 year
574	after issuance and shall be renewed annually. The application
575	for renewal must contain all revisions to the information
576	submitted in the prior year's application that are necessary to
577	maintain such information as both accurate and current.
578	(2)  The applicant for renewal shall attest that any
579	information changes do not affect the applicant's qualifications
580	for license renewal.
581	(3)  Upon determination by the division that the
582	application for renewal is complete and qualifications have been
583	met, including payment of the renewal fee, the slot machine
584	license shall be renewed annually.
585	551.106  License fee; tax rate; penalties.--
586	(1)  LICENSE FEE.--
587	(a)  Upon submission of the initial application for a slot
588	machine license and annually thereafter upon submission of an
589	application for renewal of the slot machine license, the
590	licensee must pay to the division a nonrefundable license fee of
591	$3 million. The license fee shall be deposited into the Pari-
592	mutuel Wagering Trust Fund of the Department of Business and
593	Professional Regulation to be used by the division and the
594	Department of Law Enforcement for investigations, regulation of
595	slot machine gaming, and enforcement of slot machine gaming
596	provisions under this chapter. These payments shall be accounted
597	for separately from taxes or fees paid pursuant to the
598	provisions of chapter 550.
599	(b)  Prior to January 1, 2007, the division shall evaluate
600	the license fee and shall make recommendations to the President
601	of the Senate and the Speaker of the House of Representatives
602	regarding the optimum level of slot machine license fees in
603	order to adequately support the slot machine regulatory program.
604	(2)  TAX ON SLOT MACHINE REVENUES.--
605	(a)  The tax rate on slot machine revenues at each facility
606	shall be 50 percent.
607	(b)  The slot machine revenue tax imposed by this section
608	shall be paid to the division for deposit into the Pari-mutuel
609	Wagering Trust Fund for immediate transfer by the Chief
610	Financial Officer for deposit into the Educational Enhancement
611	Trust Fund of the Department of Education. Any interest earnings
612	on the tax revenues shall also be transferred to the Educational
613	Enhancement Trust Fund.
614	(c)  Funds transferred to the Educational Enhancement Trust
615	Fund under paragraph (b) shall be used to supplement public
616	education funding statewide and shall not be used for recurring
617	appropriations.
618	(3)  PAYMENT AND DISPOSITION OF TAXES.--Payment for the tax
619	on slot machines revenues imposed by this section shall be paid
620	to the division. The division shall deposit these sums with the
621	Chief Financial Officer, to the credit of the Pari-mutuel
622	Wagering Trust Fund. The slot machine licensee shall remit to
623	the division payment for the tax on slot machine revenues. Such
624	payments shall be remitted by 3 p.m. Wednesday of each week for
625	taxes imposed and collected for the preceding week ending on
626	Sunday. The slot machine licensee shall file a report under oath
627	by the 5th day of each calendar month for all taxes remitted
628	during the preceding calendar month. Such payments shall be
629	accompanied by a report under oath showing all slot machine
630	gaming activities for the preceding calendar month and such
631	other information as may be prescribed by the division.
632	(4)  FAILURE TO PAY TAX; PENALTIES.--A slot machine
633	licensee who fails to make tax payments as required under this
634	section is subject to an administrative penalty of up to $10,000
635	for each day the tax payment is not remitted. All administrative
636	penalties imposed and collected shall be deposited into the
637	Pari-mutuel Wagering Trust Fund of the Department of Business
638	and Professional Regulation. If any slot machine licensee fails
639	to pay penalties imposed by order of the division under this
640	subsection, the division may suspend, revoke, or refuse to renew
641	the license of the slot machine licensee.
642	(5)  SUBMISSION OF FUNDS.--The division may require slot
643	machine licensees to remit taxes, fees, fines, and assessments
644	by electronic funds transfer.
645	551.107  Slot machine occupational license; findings;
646	application; fee.--
647	(1)  The Legislature finds that individuals and entities
648	that are licensed under this section require heightened state
649	scrutiny, including the submission by the individual licensees
650	or persons associated with the entities described in this
651	chapter of fingerprints for a criminal history record check.
652	(2)(a)  The following slot machine occupational licenses
653	shall be issued to persons or entities that, by virtue of the
654	position they hold, might be granted access to slot machine
655	gaming areas or to any other person or entity in one of the
656	following categories:
657	1.  General occupational licenses for general employees,
658	including food service, maintenance, and other similar service
659	and support employees having access to the slot machine gaming
660	area.
661	2.  Professional occupational licenses for any person,
662	proprietorship, partnership, corporation, or other entity that
663	is authorized by a slot machine licensee to manage, oversee, or
664	otherwise control daily operations as a slot machine manager, a
665	floor supervisor, security personnel, or any other similar
666	position of oversight of gaming operations.
667	3.  Business occupational licenses for any slot machine
668	management company or company associated with slot machine
669	gaming, any person who manufactures, distributes, or sells slot
670	machines, slot machine paraphernalia, or other associated
671	equipment to slot machine licensees, any company that sells or
672	provides goods or services associated with slot machine gaming
673	to slot machine licensees, or any person not an employee of the
674	slot machine licensee who provides maintenance, repair, or
675	upgrades or otherwise services a slot machine or other slot
676	machine equipment.
677	(b)  Notwithstanding any provision of law to the contrary,
678	a pari-mutuel occupational licensee holding a currently valid
679	pari-mutuel occupational license is eligible to act as a slot
680	machine occupational licensee upon the effective date of this
681	act until such time as rules have been adopted and such pari-
682	mutuel occupational licensee has been provided a reasonable
683	opportunity to comply with the rules.
684	(c)  Slot machine occupational licenses are not
685	transferable.
686	(3)  A slot machine licensee may not employ or otherwise
687	allow a person to work at a licensed facility unless such person
688	holds the appropriate valid occupational license. A slot machine
689	licensee may not contract or otherwise do business with a
690	business required to hold a slot machine occupational license
691	unless the business holds such a license. A slot machine
692	licensee may not employ or otherwise allow a person to work in a
693	supervisory or management professional level at a licensed
694	facility unless such person holds a valid slot machine
695	occupational license. All slot machine occupational licensees,
696	while present in slot machine gaming areas, shall display on
697	their persons their occupational license identification cards.
698	(4)(a)  A person seeking a slot machine occupational
699	license or renewal thereof shall make application on forms
700	prescribed by the division and include payment of the
701	appropriate application fee. Initial and renewal applications
702	for slot machine occupational licenses must contain all
703	information that the division, by rule, determines is required
704	to ensure eligibility.
705	(b)  The division shall establish, by rule, a schedule for
706	the annual renewal of slot machine occupational licenses.
707	(c)  Pursuant to rules adopted by the division, any person
708	may apply for and, if qualified, be issued a slot machine
709	occupational license valid for a period of 3 years upon payment
710	of the full occupational license fee for each of the 3 years for
711	which the license is issued. The slot machine occupational
712	license is valid during its specified term at any licensed
713	facility where slot machine gaming is authorized to be
714	conducted.
715	(d)  The slot machine occupational license fee for initial
716	application and annual renewal shall be determined by rule of
717	the division but may not exceed $50 for a general or
718	professional occupational license for an employee of the slot
719	machine licensee or $1,000 for a business occupational license
720	for nonemployees of the licensee providing goods or services to
721	the slot machine licensee. License fees for general occupational
722	licensees shall be paid by the slot machine licensee. Failure to
723	pay the required fee constitutes grounds for disciplinary action
724	by the division against the slot machine licensee, but it is not
725	a violation of this chapter or rules of the division by the
726	general occupational licensee and does not prohibit the initial
727	issuance or the renewal of the general occupational license.
728	(5)  The division may:
729	(a)  Deny an application for, or revoke, suspend, or place
730	conditions or restrictions on, a license of a person or entity
731	that has been refused a license by any other state gaming
732	commission, governmental department, agency, or other authority
733	exercising regulatory jurisdiction over the gaming of another
734	state or jurisdiction; or
735	(b)  Deny an application for, or suspend or place
736	conditions on, a license of any person or entity that is under
737	suspension or has unpaid fines in another state or jurisdiction.
738	(6)(a)  The division may deny, suspend, revoke, or refuse
739	to renew any slot machine occupational license if the applicant
740	for such license or the licensee has violated the provisions of
741	this chapter or the rules of the division governing the conduct
742	of persons connected with slot machine gaming. In addition, the
743	division may deny, suspend, revoke, or refuse to renew any slot
744	machine occupational license if the applicant for such license
745	or the licensee has been convicted in this state, in any other
746	state, or under the laws of the United States of a capital
747	felony, a felony, or an offense in any other state that would be
748	a felony under the laws of this state involving arson;
749	trafficking in, conspiracy to traffic in, smuggling, importing,
750	conspiracy to smuggle or import, or delivery, sale, or
751	distribution of a controlled substance; racketeering; or a crime
752	involving a lack of good moral character, or has had a gaming
753	license revoked by this state or any other jurisdiction for any
754	gaming-related offense.
755	(b)  The division may deny, revoke, or refuse to renew any
756	slot machine occupational license if the applicant for such
757	license or the licensee has been convicted of a felony or
758	misdemeanor in this state, in any other state, or under the laws
759	of the United States if such felony or misdemeanor is related to
760	gambling or bookmaking as described in s. 849.25.
761	(c)  For purposes of this subsection, the term "convicted"
762	means having been found guilty, with or without adjudication of
763	guilt, as a result of a jury verdict, nonjury trial, or entry of
764	a plea of guilty or nolo contendere.
765	(7)  Fingerprints for all slot machine occupational license
766	applications shall be taken in a manner approved by the division
767	and shall be submitted electronically to the Department of Law
768	Enforcement for state processing and the Federal Bureau of
769	Investigation for national processing for a criminal history
770	record check. All persons as specified in s. 550.1815(1)(a)
771	employed by or working within a licensed premises shall submit
772	fingerprints for a criminal history record check and may not
773	have been convicted of any disqualifying criminal offenses
774	specified in subsection (6). Division employees and law
775	enforcement officers assigned by their employing agencies to
776	work within the premises as part of their official duties are
777	excluded from the criminal history record check requirements
778	under this subsection. For purposes of this subsection, the term
779	"convicted" means having been found guilty, with or without
780	adjudication of guilt, as a result of a jury verdict, nonjury
781	trial, or entry of a plea of guilty or nolo contendere.
782	(a)  Fingerprints shall be taken in a manner approved by
783	the division upon initial application, or as required thereafter
784	by rule of the division, and shall be submitted electronically
785	to the Department of Law Enforcement for state processing. The
786	Department of Law Enforcement shall forward the fingerprints to
787	the Federal Bureau of Investigation for national processing. The
788	results of the criminal history record check shall be returned
789	to the division for purposes of screening. Licensees shall
790	provide necessary equipment approved by the Department of Law
791	Enforcement to facilitate such electronic submission. The
792	division requirements under this subsection shall be instituted
793	in consultation with the Department of Law Enforcement.
794	(b)  The cost of processing fingerprints and conducting a
795	criminal history record check for a general occupational license
796	shall be borne by the slot machine licensee. The cost of
797	processing fingerprints and conducting a criminal history record
798	check for a business or professional occupational license shall
799	be borne by the person being checked. The Department of Law
800	Enforcement may invoice the division for the fingerprints
801	submitted each month.
802	(c)  All fingerprints submitted to the Department of Law
803	Enforcement and required by this section shall be retained by
804	the Department of Law Enforcement and entered into the statewide
805	automated fingerprint identification system as authorized by s.
806	943.05(2)(b) and shall be available for all purposes and uses
807	authorized for arrest fingerprint cards entered into the
808	statewide automated fingerprint identification system pursuant
809	to s. 943.051.
810	(d)  The Department of Law Enforcement shall search all
811	arrest fingerprints received pursuant to s. 943.051 against the
812	fingerprints retained in the statewide automated fingerprint
813	identification system under paragraph (c). Any arrest record
814	that is identified with the retained fingerprints of a person
815	subject to the criminal history screening requirements of this
816	section shall be reported to the division. Each licensed
817	facility shall pay a fee to the division for the cost of
818	retention of the fingerprints and the ongoing searches under
819	this paragraph. The division shall forward the payment to the
820	Department of Law Enforcement. The amount of the fee to be
821	imposed for performing these searches and the procedures for the
822	retention of licensee fingerprints shall be as established by
823	rule of the Department of Law Enforcement. The division shall
824	inform the Department of Law Enforcement of any change in the
825	license status of licensees whose fingerprints are retained
826	under paragraph (c).
827	(e)  The division shall request the Department of Law
828	Enforcement to forward the fingerprints to the Federal Bureau of
829	Investigation for a national criminal history records check
830	every 3 years following issuance of a license. If the
831	fingerprints of a person who is licensed have not been retained
832	by the Department of Law Enforcement, the person must file a
833	complete set of fingerprints as provided for in paragraph (a).
834	The division shall collect the fees for the cost of the national
835	criminal history record check under this paragraph and shall
836	forward the payment to the Department of Law Enforcement. The
837	cost of processing fingerprints and conducting a criminal
838	history record check under this paragraph for a general
839	occupational license shall be borne by the slot machine
840	licensee. The cost of processing fingerprints and conducting a
841	criminal history record check under this paragraph for a
842	business or professional occupational license shall be borne by
843	the person being checked. The Department of Law Enforcement may
844	invoice the division for the fingerprints submitted each month.
845	Under penalty of perjury, each person who is licensed or who is
846	fingerprinted as required by this section must agree to inform
847	the division within 48 hours if he or she is convicted of or has
848	entered a plea of guilty or nolo contendere to any disqualifying
849	offense, regardless of adjudication.
850	(8)  All moneys collected pursuant to this section shall be
851	deposited into the Pari-mutuel Wagering Trust Fund.
852	551.108  Prohibited relationships.--
853	(1)  A person employed by or performing any function on
854	behalf of the division may not:
855	(a)  Be an officer, director, owner, or employee of any
856	person or entity licensed by the division.
857	(b)  Have or hold any interest, direct or indirect, in or
858	engage in any commerce or business relationship with any person
859	licensed by the division.
860	(2)  A manufacturer or distributor of slot machines may not
861	enter into any contract with a slot machine licensee that
862	provides for any revenue sharing of any kind or nature that is
863	directly or indirectly calculated on the basis of a percentage
864	of slot machine revenues. Any maneuver, shift, or device whereby
865	this subsection is violated is a violation of this chapter and
866	renders any such agreement void.
867	(3)  A manufacturer or distributor of slot machines or any
868	equipment necessary for the operation of slot machines or an
869	officer, director, or employee of any such manufacturer or
870	distributor may not have any ownership or financial interest in
871	a slot machine license or in any business owned by the slot
872	machine licensee.
873	(4)  An employee of the division or relative living in the
874	same household as such employee of the division may not wager at
875	any time on a slot machine located at a facility licensed by the
876	division.
877	(5)  An occupational licensee or relative living in the
878	same household as such occupational licensee may not wager at
879	any time on a slot machine located at a facility where that
880	person is employed.
881	551.109  Prohibited acts; penalties.--
882	(1)  Except as otherwise provided by law and in addition to
883	any other penalty, any person who knowingly makes or causes to
884	be made, or aids, assists, or procures another to make, a false
885	statement in any report, disclosure, application, or any other
886	document required under this chapter or any rule adopted under
887	this chapter is subject to an administrative fine or civil
888	penalty of up to $10,000.
889	(2)  Except as otherwise provided by law and in addition to
890	any other penalty, any person who possesses a slot machine
891	without the license required by this chapter or who possesses a
892	slot machine at any location other than at the slot machine
893	licensee's facility is subject to an administrative fine or
894	civil penalty of up to $10,000 per machine.
895	(3)  Any person who knowingly excludes, or takes any action
896	in an attempt to exclude, anything of value from the deposit,
897	counting, collection, or computation of revenues from slot
898	machine activity, or any person who by trick, sleight-of-hand
899	performance, a fraud or fraudulent scheme, or device wins or
900	attempts to win, for himself or herself or for another, money or
901	property or a combination thereof or reduces or attempts to
902	reduce a losing wager in connection with slot machine gaming
903	commits a felony of the third degree, punishable as provided in
904	s. 775.082, s. 775.083, or s. 775.084.
905	(4)  Any person who manipulates or attempts to manipulate
906	the outcome, payoff, or operation of a slot machine by physical
907	tampering or by use of any object, instrument, or device,
908	whether mechanical, electrical, magnetic, or involving other
909	means, commits a felony of the third degree, punishable as
910	provided in s. 775.082, s. 775.083, or s. 775.084.
911	(5)  Theft of any slot machine proceeds or of property
912	belonging to the slot machine operator or licensed facility by
913	an employee of the operator or facility or by an employee of a
914	person, firm, or entity that has contracted to provide services
915	to the operator or facility constitutes a felony of the third
916	degree, punishable as provided in s. 775.082 or s. 775.083.
917	(6)(a)  Any law enforcement officer or slot machine
918	operator who has probable cause to believe that a violation of
919	subsection (3), subsection (4), or subsection (5) has been
920	committed by a person and that the officer or operator can
921	recover the lost proceeds from such activity by taking the
922	person into custody may, for the purpose of attempting to effect
923	such recovery or for prosecution, take the person into custody
924	on the premises and detain the person in a reasonable manner and
925	for a reasonable period of time. If the operator takes the
926	person into custody, a law enforcement officer shall be called
927	to the scene immediately. The taking into custody and detention
928	by a law enforcement officer or slot machine operator, if done
929	in compliance with this subsection, does not render such law
930	enforcement officer, or the officer's agency, or the slot
931	machine operator criminally or civilly liable for false arrest,
932	false imprisonment, or unlawful detention.
933	(b)  Any law enforcement officer may arrest, either on or
934	off the premises and without warrant, any person if there is
935	probable cause to believe that person has violated subsection
936	(3), subsection (4), or subsection (5).
937	(c)  Any person who resists the reasonable effort of a law
938	enforcement officer or slot machine operator to recover the lost
939	slot machine proceeds that the law enforcement officer or slot
940	machine operator had probable cause to believe had been stolen
941	from the licensed facility and who is subsequently found to be
942	guilty of violating subsection (3), subsection (4), or
943	subsection (5) commits a misdemeanor of the first degree,
944	punishable as provided in s. 775.082 or s. 775.083, unless such
945	person did not know or did not have reason to know that the
946	person seeking to recover the lost proceeds was a law
947	enforcement officer or slot machine operator.
948	(7)  All penalties imposed and collected under this section
949	must be deposited into the Pari-mutuel Wagering Trust Fund of
950	the Department of Business and Professional Regulation.
951	551.111  Legal devices.--Notwithstanding any provision of
952	law to the contrary, a slot machine manufactured, sold,
953	distributed, possessed, or operated according to the provisions
954	of this chapter is not unlawful.
955	551.112  Exclusions of certain persons.--In addition to the
956	power to exclude certain persons from any facility of a slot
957	machine licensee in this state, the division may exclude any
958	person from any facility of a slot machine licensee in this
959	state for conduct that would constitute, if the person were a
960	licensee, a violation of this chapter or the rules of the
961	division. The division may exclude from any facility of a slot
962	machine licensee any person who has been ejected from a facility
963	of a slot machine licensee in this state or who has been
964	excluded from any facility of a slot machine licensee or gaming
965	facility in another state by the governmental department,
966	agency, commission, or authority exercising regulatory
967	jurisdiction over the gaming in such other state. This section
968	does not abrogate the common law right of a slot machine
969	licensee to exclude a patron absolutely in this state.
970	551.113  Persons prohibited from playing slot machines.--
971	(1)  A person who has not attained 21 years of age may not
972	play or operate a slot machine or have access to the designated
973	slot machine gaming area of a facility of a slot machine
974	licensee.
975	(2)  A slot machine licensee or agent or employee of a slot
976	machine licensee may not knowingly allow a person who has not
977	attained 21 years of age:
978	(a)  To play or operate any slot machine.
979	(b)  To be employed in any position allowing or requiring
980	access to the designated slot machine gaming area of a facility
981	of a slot machine licensee.
982	(c)  To have access to the designated slot machine gaming
983	area of a facility of a slot machine licensee.
984	(3)  The licensed facility shall post clear and conspicuous
985	signage within the designated slot machine gaming areas that
986	states the following:
987
988	THE PLAYING OF SLOT MACHINES BY PERSONS UNDER THE AGE OF
989	21 IS AGAINST FLORIDA LAW (SECTION 551.113, FLORIDA
990	STATUTES). PROOF OF AGE MAY BE REQUIRED AT ANY TIME.
991
992	551.114  Slot machine gaming areas.--
993	(1)  A slot machine licensee may make available for play up
994	to 1,500 slot machines within the property of the facilities of
995	the slot machine licensee.
996	(2)  The slot machine licensee shall display pari-mutuel
997	races or games within the designated slot machine gaming areas
998	and offer patrons within the designated slot machine gaming
999	areas the ability to engage in pari-mutuel wagering on live,
1000	intertrack, and simulcast races conducted or offered to patrons
1001	of the licensed facility.
1002	(3)  The division shall require the posting of signs
1003	warning of the risks and dangers of gambling, showing the odds
1004	of winning, and informing patrons of the toll-free telephone
1005	number available to provide information and referral services
1006	regarding compulsive or problem gambling.
1007	(4)  Designated slot machine gaming areas may be located
1008	within the current live gaming facility or in an existing
1009	building that must be contiguous and connected to the live
1010	gaming facility. If a designated slot machine gaming area is to
1011	be located in a building that is to be constructed, that new
1012	building must be contiguous and connected to the live gaming
1013	facility.
1014	(5)  The permitholder shall provide adequate office space
1015	at no cost to the division and the Department of Law Enforcement
1016	for the oversight of slot machine operations. The division shall
1017	adopt rules establishing the criteria for adequate space,
1018	configuration, and location and needed electronic and
1019	technological requirements for office space required by this
1020	subsection.
1021	551.116  Days and hours of operation.--Slot machine gaming
1022	areas may be open daily throughout the year. The slot machine
1023	gaming areas may be open for a maximum of 16 hours per day.
1024	551.117  Penalties.--The division may revoke or suspend any
1025	slot machine license issued under this chapter upon the willful
1026	violation by the slot machine licensee of any provision of this
1027	chapter or of any rule adopted under this chapter. In lieu of
1028	suspending or revoking a slot machine license, the division may
1029	impose a civil penalty against the slot machine licensee for a
1030	violation of this chapter or any rule adopted by the division.
1031	Except as otherwise provided in this chapter, the penalty so
1032	imposed may not exceed $100,000 for each count or separate
1033	offense. All penalties imposed and collected must be deposited
1034	into the Pari-mutuel Wagering Trust Fund of the Department of
1035	Business and Professional Regulation.
1036	551.118  Compulsive or addictive gambling prevention
1037	program.--
1038	(1)  The slot machine licensee shall offer training to
1039	employees on responsible gaming and shall work with a compulsive
1040	or addictive gambling prevention program to recognize problem
1041	gaming situations and to implement responsible gaming programs
1042	and practices.
1043	(2)  The division shall, subject to competitive bidding,
1044	contract for provision of services related to the prevention of
1045	compulsive and addictive gambling. The contract shall provide
1046	for an advertising program to encourage responsible gaming
1047	practices and to publicize a gambling telephone help line. Such
1048	advertisements must be made both publicly and inside the
1049	designated slot machine gaming areas of the licensee's
1050	facilities. The terms of any contract for the provision of such
1051	services shall include accountability standards that must be met
1052	by any private provider. The failure of any private provider to
1053	meet any material terms of the contract, including the
1054	accountability standards, shall constitute a breach of contract
1055	or grounds for nonrenewal. The division may consult with the
1056	Department of the Lottery in the development of the program and
1057	the development and analysis of any procurement for contractual
1058	services for the compulsive or addictive gambling prevention
1059	program.
1060	(3)  The compulsive or addictive gambling prevention
1061	program shall be funded from an annual nonrefundable regulatory
1062	fee of $250,000 paid by the licensee to the division.
1063	551.119  Caterer's license.--A slot machine licensee is
1064	entitled to a caterer's license pursuant to s. 565.02 on days on
1065	which the pari-mutuel facility is open to the public for slot
1066	machine game play as authorized by this chapter.
1067	551.121  Prohibited activities and devices.--
1068	(1)  Complimentary or reduced-cost alcoholic beverages may
1069	not be served to persons playing a slot machine. Alcoholic
1070	beverages served to persons playing a slot machine shall cost at
1071	least the same amount as alcoholic beverages served to the
1072	general public at a bar within the facility.
1073	(2)  A slot machine licensee may not make any loan, provide
1074	credit, or advance cash in order to enable a person to play a
1075	slot machine. This subsection shall not prohibit automated
1076	ticket redemption machines that dispense cash resulting from the
1077	redemption of tickets from being located in the designated slot
1078	machine gaming area of the slot machine licensee.
1079	(3)  A slot machine licensee may not allow any automated
1080	teller machine or similar device designed to provide credit or
1081	dispense cash to be located within the facilities of the slot
1082	machine licensee.
1083	(4)  A slot machine licensee may not accept or cash any
1084	personal, third-party, corporate, business, or government-issued
1085	check from any person.
1086	(5)  A slot machine, or the computer operating system
1087	linking the slot machine, may not be linked by any means to any
1088	other slot machine or computer operating system of another slot
1089	machine licensee. A progressive system may not be used in
1090	conjunction with slot machines within or between licensed
1091	facilities.
1092	(6)  A slot machine located within a licensed facility
1093	shall accept only tickets or paper currency or an electronic
1094	payment system for wagering and return or deliver payouts to the
1095	player in the form of tickets that may be exchanged for cash,
1096	merchandise, or other items of value. The use of coins, credit
1097	or debit cards, tokens, or similar objects is specifically
1098	prohibited. However, an electronic credit system may be used for
1099	receiving wagers and making payouts.
1100	551.122  Rulemaking.--The division may adopt rules pursuant
1101	to ss. 120.536(1) and 120.54 to administer the provisions of
1102	this chapter.
1103	Section 2.  Section 849.15, Florida Statutes, is amended to
1104	read:
1105	849.15  Manufacture, sale, possession, etc., of coin-
1106	operated devices prohibited.--
1107	(1)  It is unlawful:
1108	(a)(1)  To manufacture, own, store, keep, possess, sell,
1109	rent, lease, let on shares, lend or give away, transport, or
1110	expose for sale or lease, or to offer to sell, rent, lease, let
1111	on shares, lend or give away, or permit the operation of, or for
1112	any person to permit to be placed, maintained, or used or kept
1113	in any room, space, or building owned, leased or occupied by the
1114	person or under the person's management or control, any slot
1115	machine or device or any part thereof; or
1116	(b)(2)  To make or to permit to be made with any person any
1117	agreement with reference to any slot machine or device, pursuant
1118	to which the user thereof, as a result of any element of chance
1119	or other outcome unpredictable to him or her, may become
1120	entitled to receive any money, credit, allowance, or thing of
1121	value or additional chance or right to use such machine or
1122	device, or to receive any check, slug, token or memorandum
1123	entitling the holder to receive any money, credit, allowance or
1124	thing of value.
1125	(2)  Pursuant to section 2 of that chapter of the Congress
1126	of the United States entitled "An act to prohibit transportation
1127	of gaming devices in interstate and foreign commerce," approved
1128	January 2, 1951, being c. 1194, 64 Stat. 1134, and also
1129	designated as 15 U.S.C. ss. 1171-1177, the State of Florida,
1130	acting by and through the duly elected and qualified members of
1131	its Legislature, does hereby in this section, and in accordance
1132	with and in compliance with the provisions of section 2 of such
1133	chapter of Congress, declare and proclaim that any county of the
1134	State of Florida within which slot machine gaming is authorized
1135	pursuant to chapter 551 is exempt from the provisions of section
1136	2 of that chapter of the Congress of the United States entitled
1137	"An act to prohibit transportation of gaming devices in
1138	interstate and foreign commerce," designated as 15 U.S.C. ss.
1139	1171-1177, approved January 2, 1951. All shipments of gaming
1140	devices, including slot machines, into any county of this state
1141	within which slot machine gaming is authorized pursuant to
1142	chapter 551 and the registering, recording, and labeling of
1143	which have been duly performed by the manufacturer or
1144	distributor thereof in accordance with sections 3 and 4 of that
1145	chapter of the Congress of the United States entitled "An act to
1146	prohibit transportation of gaming devices in interstate and
1147	foreign commerce," approved January 2, 1951, being c. 1194, 64
1148	Stat. 1134, and also designated as 15 U.S.C. ss. 1171-1177,
1149	shall be deemed legal shipments thereof into any such county
1150	provided the destination of such shipments is an eligible
1151	facility as defined s. 551.102.
1152	Section 3.  Subsections (1) and (2) of section 895.02,
1153	Florida Statutes, are amended to read:
1154	895.02  Definitions.--As used in ss. 895.01-895.08, the
1155	term:
1156	(1)  "Racketeering activity" means to commit, to attempt to
1157	commit, to conspire to commit, or to solicit, coerce, or
1158	intimidate another person to commit:
1159	(a)  Any crime which is chargeable by indictment or
1160	information under the following provisions of the Florida
1161	Statutes:
1162	1.  Section 210.18, relating to evasion of payment of
1163	cigarette taxes.
1164	2.  Section 403.727(3)(b), relating to environmental
1165	control.
1166	3.  Section 409.920 or s. 409.9201, relating to Medicaid
1167	fraud.
1168	4.  Section 414.39, relating to public assistance fraud.
1169	5.  Section 440.105 or s. 440.106, relating to workers'
1170	compensation.
1171	6.  Section 443.071(4), relating to creation of a
1172	fictitious employer scheme to commit unemployment compensation
1173	fraud.
1174	7.  Section 465.0161, relating to distribution of medicinal
1175	drugs without a permit as an Internet pharmacy.
1176	8.  Sections 499.0051, 499.0052, 499.00535, 499.00545, and
1177	499.0691, relating to crimes involving contraband and
1178	adulterated drugs.
1179	9.  Part IV of chapter 501, relating to telemarketing.
1180	10.  Chapter 517, relating to sale of securities and
1181	investor protection.
1182	11.  Section 550.235, s. 550.3551, or s. 550.3605, relating
1183	to dogracing and horseracing.
1184	12.  Chapter 550, relating to jai alai frontons.
1185	13.  Section 551.109, relating to slot machine gaming.
1186	14.13.  Chapter 552, relating to the manufacture,
1187	distribution, and use of explosives.
1188	15.14.  Chapter 560, relating to money transmitters, if the
1189	violation is punishable as a felony.
1190	16.15.  Chapter 562, relating to beverage law enforcement.
1191	17.16.  Section 624.401, relating to transacting insurance
1192	without a certificate of authority, s. 624.437(4)(c)1., relating
1193	to operating an unauthorized multiple-employer welfare
1194	arrangement, or s. 626.902(1)(b), relating to representing or
1195	aiding an unauthorized insurer.
1196	18.17.  Section 655.50, relating to reports of currency
1197	transactions, when such violation is punishable as a felony.
1198	19.18.  Chapter 687, relating to interest and usurious
1199	practices.
1200	20.19.  Section 721.08, s. 721.09, or s. 721.13, relating
1201	to real estate timeshare plans.
1202	21.20.  Chapter 782, relating to homicide.
1203	22.21.  Chapter 784, relating to assault and battery.
1204	23.22.  Chapter 787, relating to kidnapping.
1205	24.23.  Chapter 790, relating to weapons and firearms.
1206	25.24.  Section 796.03, s. 796.035, s. 796.04, s. 796.045,
1207	s. 796.05, or s. 796.07, relating to prostitution and sex
1208	trafficking.
1209	26.25.  Chapter 806, relating to arson.
1210	27.26.  Section 810.02(2)(c), relating to specified
1211	burglary of a dwelling or structure.
1212	28.27.  Chapter 812, relating to theft, robbery, and
1213	related crimes.
1214	29.28.  Chapter 815, relating to computer-related crimes.
1215	30.29.  Chapter 817, relating to fraudulent practices,
1216	false pretenses, fraud generally, and credit card crimes.
1217	31.30.  Chapter 825, relating to abuse, neglect, or
1218	exploitation of an elderly person or disabled adult.
1219	32.31.  Section 827.071, relating to commercial sexual
1220	exploitation of children.
1221	33.32.  Chapter 831, relating to forgery and
1222	counterfeiting.
1223	34.33.  Chapter 832, relating to issuance of worthless
1224	checks and drafts.
1225	35.34.  Section 836.05, relating to extortion.
1226	36.35.  Chapter 837, relating to perjury.
1227	37.36.  Chapter 838, relating to bribery and misuse of
1228	public office.
1229	38.37.  Chapter 843, relating to obstruction of justice.
1230	39.38.  Section 847.011, s. 847.012, s. 847.013, s. 847.06,
1231	or s. 847.07, relating to obscene literature and profanity.
1232	40.39.  Section 849.09, s. 849.14, s. 849.15, s. 849.23, or
1233	s. 849.25, relating to gambling.
1234	41.40.  Chapter 874, relating to criminal street gangs.
1235	42.41.  Chapter 893, relating to drug abuse prevention and
1236	control.
1237	43.42.  Chapter 896, relating to offenses related to
1238	financial transactions.
1239	44.43.  Sections 914.22 and 914.23, relating to tampering
1240	with a witness, victim, or informant, and retaliation against a
1241	witness, victim, or informant.
1242	45.44.  Sections 918.12 and 918.13, relating to tampering
1243	with jurors and evidence.
1244	(b)  Any conduct defined as "racketeering activity" under
1245	18 U.S.C. s. 1961(1).
1246	(2)  "Unlawful debt" means any money or other thing of
1247	value constituting principal or interest of a debt that is
1248	legally unenforceable in this state in whole or in part because
1249	the debt was incurred or contracted:
1250	(a)  In violation of any one of the following provisions of
1251	law:
1252	1.  Section 550.235, s. 550.3551, or s. 550.3605, relating
1253	to dogracing and horseracing.
1254	2.  Chapter 550, relating to jai alai frontons.
1255	3.  Section 551.109, relating to slot machine gaming.
1256	4.3.  Chapter 687, relating to interest and usury.
1257	5.4.  Section 849.09, s. 849.14, s. 849.15, s. 849.23, or
1258	s. 849.25, relating to gambling.
1259	(b)  In gambling activity in violation of federal law or in
1260	the business of lending money at a rate usurious under state or
1261	federal law.
1262	Section 4.  The Legislature finds and declares that it has
1263	exclusive authority over the conduct of all wagering occurring
1264	at a slot machine facility in this state. As provided by law,
1265	only the Division of Pari-mutuel Wagering and other authorized
1266	state agencies shall administer chapter 551, Florida Statutes,
1267	and regulate the slot machine gaming industry, including
1268	operation of slot machine facilities, games, slot machines, and
1269	facilities-based computer systems authorized in chapter 551,
1270	Florida Statutes, and the rules adopted by the division.
1271	Section 5.  (1)  For fiscal year 2005-2006, 46 full-time
1272	equivalent positions, with associated salary rate of 1,810,342,
1273	are authorized and the sums of $682,582 in recurring funds and
1274	$1,164,135 in nonrecurring funds from the Pari-mutuel Wagering
1275	Trust Fund of the Department of Business and Professional
1276	Regulation and $139,474 in recurring funds and $809,863 in
1277	nonrecurring funds from the Administrative Trust Fund of the
1278	Department of Business and Professional Regulation are hereby
1279	appropriated for the purpose of carrying out all regulatory
1280	activities provided in this act. The Executive Office of the
1281	Governor shall place these funds and positions and the salary
1282	rate in reserve until such time as the Department of Business
1283	and Professional Regulation submits an expenditure plan for
1284	approval to the Executive Office of the Governor and the chair
1285	and vice chair of the Legislative Budget Commission in
1286	accordance with the provisions of s. 216.177, Florida Statutes.
1287	(2)  For fiscal year 2005-2006, the sums of $1,024,998 in
1288	recurring funds and $1,184,564 in nonrecurring funds are hereby
1289	appropriated from the Pari-mutuel Wagering Trust Fund of the
1290	Department of Business and Professional Regulation for transfer
1291	to the Department of Law Enforcement for the purpose of
1292	investigations, intelligence gathering, background
1293	investigations, and any other responsibilities as provided for
1294	in this act. Thirty-nine full-time equivalent positions, with an
1295	associated salary rate of 1,682,034, are authorized and the sums
1296	of $1,024,998 in recurring funds and $1,184,564 in nonrecurring
1297	funds are hereby appropriated from the Operating Trust Fund
1298	within the Department of Law Enforcement for the purpose of
1299	investigations, intelligence gathering, background
1300	investigations, and any other responsibilities as provided for
1301	in this act. The Executive Office of the Governor shall place
1302	these funds and positions and the salary rate in reserve until
1303	such time as the Department of Law Enforcement submits an
1304	expenditure plan for approval to the Executive Office of the
1305	Governor and the chair and vice chair of the Legislative Budget
1306	Commission in accordance with the provisions of s. 216.177,
1307	Florida Statutes.
1308	(3)  The sum of $1,000,000 in recurring funds is
1309	appropriated for fiscal year 2005-2006 from the Pari-mutuel
1310	Wagering Trust Fund of the Department of Business and
1311	Professional Regulation from revenues received pursuant to s.
1312	551.118, Florida Statutes, for contract services related to the
1313	prevention of compulsive and addictive gambling.
1314	Section 6.  Paragraph (v) is added to subsection (1) of
1315	section 215.22, Florida Statutes, to read:
1316	215.22  Certain income and certain trust funds exempt.--
1317	(1)  The following income of a revenue nature or the
1318	following trust funds shall be exempt from the appropriation
1319	required by s. 215.20(1):
1320	(v)  Taxes imposed on slot machine revenues pursuant to s.
1321	551.106(2).
1322	Section 7.  The Department of Business and Professional
1323	Regulation may expend the unreserved cash balance in the Pari-
1324	mutuel Wagering Trust Fund received from non-slot revenue
1325	sources to implement slot machine regulation and investigations
1326	during fiscal year 2005-2006. Beginning as soon as practical,
1327	but no later than fiscal year 2006-2007, the department shall
1328	initiate repayment of such funds with slot machine license
1329	revenue sources until the full amount is reimbursed. The
1330	department shall submit a repayment plan for approval to the
1331	Executive Office of the Governor and the chair and vice chair of
1332	the Legislative Budget Commission in accordance with the
1333	provisions of s. 216.177, Florida Statutes. The repaid funds
1334	shall be subject to the requirements of s. 550.135(2), Florida
1335	Statutes.
1336	Section 8.  This act shall take effect upon becoming a law.

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