CS/HB 1047

1
A bill to be entitled
2An act relating to slot machine gaming, as authorized by
3Section 23 of Article X of the State Constitution;
4amending s. 551.102, F.S.; defining the term
5"nonredeemable credits"; redefining the term "slot machine
6revenues"; amending s. 551.103, F.S.; deleting a
7requirement that the Division of Pari-mutuel Wagering
8annually adjust the amount of the bond supplied by a slot
9machine licensee; establishing the annual amount of bond
10required; providing for procedures for drug testing;
11amending s. 551.104, F.S.; providing for implementation of
12a drug-testing program; amending s. 551.1045, F.S.;
13providing procedures for temporary occupational licenses;
14deleting provisions for temporary licensees to be adopted
15within 180 days; amending s. 551.106, F.S.; establishing
16when payment of the annual slot machine license fee must
17be made by a licensee; amending s. 551.107, F.S.;
18authorizing the division to adopt rules to create a single
19occupational license; providing for validity; providing
20for additional disciplinary actions and civil fines;
21amending s. 551.109, F.S.; exempting slot machine
22manufacturers and distributors, certain educational
23facilities, the division, and the Department of Law
24Enforcement from certain prohibitions against possessing
25slot machines at a place other than the licensee's
26facility under certain circumstances; authorizing agency
27rulemaking; amending s. 551.114, F.S.; increasing the
28number of slot machines a licensee may make available for
29play; amending s. 551.116, F.S.; increasing the hours that
30slot machine gaming areas may be open; amending s.
31551.121, F.S.; authorizing automatic teller machines in
32certain areas of a pari-mutuel facility; authorizing check
33cashing for employees within the facility; authorizing the
34linking of machines within the slot machine facility for
35the purpose of progressive games; amending s. 849.15,
36F.S.; clarifying the authority to legally ship slot
37machines into the state under certain circumstances;
38providing an appropriation; providing an effective date.
39
40Be It Enacted by the Legislature of the State of Florida:
41
42     Section 1.  Present subsections (6) through (12) of section
43551.102, Florida Statutes, are redesignated as subsections (7)
44through (13), respectively, a new subsection (6) is added to
45that section, and present subsection (12) of that section is
46amended, to read:
47     551.102  Definitions.--As used in this chapter, the term:
48     (6)  "Nonredeemable credits" means slot machine operating
49credits that cannot be redeemed for cash or any other thing of
50value by a slot machine, kiosk, or the slot machine licensee and
51that are provided free of charge to patrons. Such credits do not
52constitute "nonredeemable credits" until such time as they are
53metered as credit into a slot machine and recorded in the
54facility-based monitoring system.
55     (13)(12)  "Slot machine revenues" means the total of all
56cash and property, except nonredeemable credits, received by the
57slot machine licensee from the operation of slot machines less
58the amount of cash, cash equivalents, credits, and prizes paid
59to winners of slot machine gaming.
60     Section 2.  Paragraph (f) of subsection (1) of section
61551.103, Florida Statutes, is amended, and paragraph (j) is
62added to that subsection, to read:
63     551.103  Powers and duties of the division and law
64enforcement.--
65     (1)  The division shall adopt, pursuant to the provisions
66of ss. 120.536(1) and 120.54, all rules necessary to implement,
67administer, and regulate slot machine gaming as authorized in
68this chapter. Such rules must include:
69     (f)  Procedures for requiring each licensee at his or her
70own cost and expense to supply the division with a bond having
71the penal sum of $2 million payable to the Governor and his or
72her successors in office for each year of the licensee's first
73year of slot machine operations. Annually thereafter, the
74licensee shall file a bond having a penal sum that is determined
75each year by the division pursuant to rules adopted by the
76division and that approximates the anticipated state revenues
77from the licensee's slot machine operation; however, the bond
78may not in any case be less than $2 million. Any bond shall be
79issued by a surety or sureties approved by the division and the
80Chief Financial Officer, conditioned to faithfully make the
81payments to the Chief Financial Officer in his or her capacity
82as treasurer of the division. The licensee shall be required to
83keep its books and records and make reports as provided in this
84chapter and to conduct its slot machine operations in conformity
85with this chapter and all other provisions of law. Such bond
86shall be separate and distinct from the bond required in s.
87550.125.
88     (j)  Procedures for requiring slot machine licensees to
89implement and establish drug-testing programs for all slot
90machine occupational licensees.
91     Section 3.  Paragraph (i) of subsection (4) of section
92551.104, Florida Statutes, is amended to read:
93     551.104  License to conduct slot machine gaming.--
94     (4)  As a condition of licensure and to maintain continued
95authority for the conduct of slot machine gaming, the slot
96machine licensee shall:
97     (i)  Create and file with the division a written policy
98for:
99     1.  Creating opportunities to purchase from vendors in this
100state, including minority vendors.
101     2.  Creating opportunities for employment of residents of
102this state, including minority residents.
103     3.  Ensuring opportunities for construction services from
104minority contractors.
105     4.  Ensuring that opportunities for employment are offered
106on an equal, nondiscriminatory basis.
107     5.  Training for employees on responsible gaming and
108working with a compulsive or addictive gambling prevention
109program to further its purposes as provided for in s. 551.118.
110     6.  The implementation of a drug-testing program that
111includes, but is not limited to, requiring each employee to sign
112an agreement that he or she understands that the slot machine
113facility is a drug-free workplace.
114
115The slot machine licensee shall use the Internet-based job-
116listing system of the Agency for Workforce Innovation in
117advertising employment opportunities. Beginning in June 2007,
118each slot machine licensee shall provide an annual report to the
119division containing information indicating compliance with this
120paragraph in regard to minority persons.
121     Section 4.  Section 551.1045, Florida Statutes, is amended
122to read:
123     551.1045  Temporary licenses.--
124     (1)  Notwithstanding any provision of s. 120.60 to the
125contrary, the division may issue a temporary occupational
126license upon the receipt of a complete application from the
127applicant and a determination that the applicant has not been
128convicted of or had adjudication withheld on any disqualifying
129criminal offense. The temporary occupational license remains
130valid until such time as the division grants an occupational
131license or notifies the applicant of its intended decision to
132deny the applicant a license pursuant to the provisions of s.
133120.60. The division shall adopt rules to administer this
134subsection. However, not more than one temporary license may be
135issued for any person in any year.
136     (1)(a)  After 180 days following the effective date of this
137act, if the division has not adopted rules to implement the
138provisions of this chapter that allow for the issuance of slot
139machine licenses within such 180 days, the division shall issue
140a temporary slot machine license to an applicant if the
141applicant holds a valid pari-mutuel permit in good standing
142under chapter 550, the applicant's ownership interests have been
143previously approved as provided in chapter 550, and the
144applicant has conducted live racing or games during the calendar
145years 2002 and 2003 and has paid the license fee provided in s.
146551.106(1). The slot machine license will permit the licensee to
147conduct slot machine gaming in the designated slot machine
148gaming areas of the eligible facility.
149     (b)  The temporary license is valid until the division has
150adopted rules implementing the provisions of this chapter and
151taken final action on the filed application under its final
152adopted rules. Once the division has adopted rules implementing
153the provisions of this chapter, it shall complete review of any
154filed application and shall issue a license under s. 551.104 if
155the licensee meets the requirements of this chapter and rules
156adopted by the division.
157     (2)(a)  A manufacturer or distributor of slot machines who
158has applied for a license under s. 551.107 shall be issued a
159temporary business occupational license if it holds a valid
160license to manufacture or distribute slot machines in a state
161where gaming is lawful.
162     (b)  The temporary license is valid until the division has
163adopted rules implementing the provisions of this chapter and
164taken final action on the filed application under its final
165adopted rules. Once the division has adopted rules implementing
166the provisions of this chapter, it shall complete review of any
167filed application and shall issue a license under s. 551.107 if
168the licensee meets the requirements of this chapter and rules
169adopted by the division.
170     (2)(3)  A temporary license issued under this section is
171nontransferable. Any temporary license issued under this section
172shall be valid during the pendency of any challenge to the
173rules.
174     Section 5.  Paragraph (a) of subsection (1) of section
175551.106, Florida Statutes, is amended to read:
176     551.106  License fee; tax rate; penalties.--
177     (1)  LICENSE FEE.--
178     (a)  Upon submission of the initial application for a slot
179machine license and annually thereafter, on the anniversary date
180of the issuance of the initial license upon submission of an
181application for renewal of the slot machine license, the
182licensee must pay to the division a nonrefundable license fee of
183$3 million for the succeeding 12 months of licensure. The
184license fee shall be deposited into the Pari-mutuel Wagering
185Trust Fund of the Department of Business and Professional
186Regulation to be used by the division and the Department of Law
187Enforcement for investigations, regulation of slot machine
188gaming, and enforcement of slot machine gaming provisions under
189this chapter. These payments shall be accounted for separately
190from taxes or fees paid pursuant to the provisions of chapter
191550.
192     Section 6.  Subsection (2) and paragraph (b) of subsection
193(4) of section 551.107, Florida Statutes, are amended, and
194subsections (9), (10), and (11) are added to that section, to
195read:
196     551.107  Slot machine occupational license; findings;
197application; fee.--
198     (2)(a)  The following slot machine occupational licenses
199shall be issued to persons or entities that, by virtue of the
200positions they hold, might be granted access to slot machine
201gaming areas or to any other person or entity in one of the
202following categories:
203     1.  General occupational licenses for general employees,
204including food service, maintenance, and other similar service
205and support employees having access to the slot machine gaming
206area.
207     2.  Professional occupational licenses for any person,
208proprietorship, partnership, corporation, or other entity that
209is authorized by a slot machine licensee to manage, oversee, or
210otherwise control daily operations as a slot machine manager, a
211floor supervisor, security personnel, or any other similar
212position of oversight of gaming operations, or any person who is
213not an employee of the slot machine licensee and who provides
214maintenance, repair, or upgrades or otherwise services a slot
215machine or other slot machine equipment.
216     3.  Business occupational licenses for any slot machine
217management company or company associated with slot machine
218gaming, any person who manufactures, distributes, or sells slot
219machines, slot machine paraphernalia, or other associated
220equipment to slot machine licensees, or any company that sells
221or provides goods or services associated with slot machine
222gaming to slot machine licensees, or any person not an employee
223of the slot machine licensee who provides maintenance, repair,
224or upgrades or otherwise services a slot machine or other slot
225machine equipment.
226     (b)  The division may issue one license to combine licenses
227under this section with pari-mutuel occupational licenses and
228cardroom licenses pursuant to s. 550.105(2)(b). The division
229shall adopt rules pertaining to occupational licenses under this
230subsection. Such rules may specify, but need not be limited to,
231requirements and restrictions for licensed occupations and
232categories, procedures to apply for any license or combination
233of licenses, disqualifying criminal offenses for a licensed
234occupation or categories of occupations, and which types of
235occupational licenses may be combined into a single license
236under this section. The fingerprinting requirements of
237subsection (7) apply to any combination license that includes
238slot machine license privileges under this section. The division
239may not adopt a rule allowing the issuance of an occupational
240license to any person who does not meet the minimum background
241qualifications under this section.
242     (b)  Notwithstanding any provision of law to the contrary,
243a pari-mutuel occupational licensee holding a currently valid
244pari-mutuel occupational license is eligible to act as a slot
245machine occupational licensee upon the effective date of this
246act until such time as rules have been adopted and such pari-
247mutuel occupational licensee has been provided a reasonable
248opportunity to comply with the rules.
249     (c)  Slot machine occupational licenses are not
250transferable.
251     (4)
252     (b)  A slot machine license or combination license is valid
253for the same term as a pari-mutuel occupational license issued
254pursuant to s. 550.105(1). The division shall establish, by
255rule, a schedule for the annual renewal of slot machine
256occupational licenses.
257     (9)  The division may deny, revoke, or suspend any
258occupational license if the applicant or holder of the license
259accumulates unpaid obligations, defaults in obligations, or
260issues drafts or checks that are dishonored or for which payment
261is refused without reasonable cause.
262     (10)  The division may fine or suspend, revoke, or place
263conditions upon the license of any licensee who provides false
264information under oath regarding an application for a license or
265an investigation by the division.
266     (11)  The division may impose a civil fine of up to $5,000
267for each violation of this chapter or the rules of the division
268in addition to or in lieu of any other penalty provided for in
269this section. The division may adopt a penalty schedule for
270violations of this chapter or any rule adopted pursuant to this
271chapter for which it would impose a fine in lieu of a suspension
272and adopt rules allowing for the issuance of citations,
273including procedures to address such citations, to persons who
274violate such rules. In addition to any other penalty provided by
275law, the division may exclude from all licensed slot machine
276facilities in this state, for a period not to exceed the period
277of suspension, revocation, or ineligibility, any person whose
278occupational license application has been declared ineligible to
279hold an occupational license or whose occupational license has
280been suspended or revoked by the division.
281     Section 7.  Subsection (2) of section 551.109, Florida
282Statutes, is amended to read:
283     551.109  Prohibited acts; penalties.--
284     (2)  Except as otherwise provided by law and in addition to
285any other penalty, any person who possesses a slot machine
286without the license required by this chapter or who possesses a
287slot machine at any location other than at the slot machine
288licensee's facility is subject to an administrative fine or
289civil penalty of up to $10,000 per machine. The prohibition in
290this subsection does not apply to:
291     (a)  Slot machine manufacturers or slot machine
292distributors that hold appropriate licenses issued by the
293division who are authorized to maintain a slot machine storage
294and maintenance facility at any location in a county in which
295slot machine gaming is authorized by this chapter. The division
296may adopt rules regarding security and access to the storage
297facility and inspections by the division.
298     (b)  Certified educational facilities that are authorized
299to maintain slot machines for the sole purpose of education and
300licensure, if any, of slot machine technicians, inspectors, or
301investigators. The division and the Department of Law
302Enforcement may possess slot machines for training and testing
303purposes. The division may adopt rules regarding the regulation
304of any such slot machines used for educational, training, or
305testing purposes.
306     Section 8.  Subsection (1) of section 551.114, Florida
307Statutes, is amended to read:
308     551.114  Slot machine gaming areas.--
309     (1)  A slot machine licensee may make available for play up
310to 2,000 1,500 slot machines within the property of the
311facilities of the slot machine licensee.
312     Section 9.  Section 551.116, Florida Statutes, is amended
313to read:
314     551.116  Days and hours of operation.--Slot machine gaming
315areas may be open daily throughout the year. The slot machine
316gaming areas may be open a cumulative amount of 18 hours per day
317on Monday through Friday and 24 for a maximum of 16 hours per
318day on Saturday and Sunday and on those holidays specified in s.
319110.117(1).
320     Section 10.  Section 551.121, Florida Statutes, is amended
321to read:
322     551.121  Prohibited activities and devices; exceptions.--
323     (1)  Complimentary or reduced-cost alcoholic beverages may
324not be served to persons playing a slot machine. Alcoholic
325beverages served to persons playing a slot machine shall cost at
326least the same amount as alcoholic beverages served to the
327general public at a bar within the facility.
328     (2)  A slot machine licensee may not make any loan, provide
329credit, or advance cash in order to enable a person to play a
330slot machine. This subsection shall not prohibit automated
331ticket redemption machines that dispense cash resulting from the
332redemption of tickets from being located in the designated slot
333machine gaming area of the slot machine licensee.
334     (3)  A slot machine licensee may not allow any automated
335teller machine or similar device designed to provide credit or
336dispense cash to be located within the designated slot machine
337gaming areas of a facility of a facilities of the slot machine
338licensee.
339     (4)  A slot machine licensee may not accept or cash any
340personal, third-party, corporate, business, or government-issued
341check from any person other than from a person who is employed
342within the property of the facility.
343     (5)  A slot machine, or the computer operating system
344linking the slot machine, may not be linked by any means to any
345other slot machine or computer operating system within the
346facility of a another slot machine licensee. A progressive
347system may not be used in conjunction with slot machines within
348or between licensed facilities.
349     (6)  A slot machine located within a licensed facility
350shall accept only tickets or paper currency or an electronic
351payment system for wagering and return or deliver payouts to the
352player in the form of tickets that may be exchanged for cash,
353merchandise, or other items of value. The use of coins, credit
354or debit cards, tokens, or similar objects is specifically
355prohibited. However, an electronic credit system may be used for
356receiving wagers and making payouts.
357     Section 11.  Subsection (2) of section 849.15, Florida
358Statutes, is amended to read:
359     849.15  Manufacture, sale, possession, etc., of coin-
360operated devices prohibited.--
361     (2)  Pursuant to section 2 of that chapter of the Congress
362of the United States entitled "An act to prohibit transportation
363of gaming devices in interstate and foreign commerce," approved
364January 2, 1951, being ch. 1194, 64 Stat. 1134, and also
365designated as 15 U.S.C. ss. 1171-1177, the State of Florida,
366acting by and through the duly elected and qualified members of
367its Legislature, does hereby in this section, and in accordance
368with and in compliance with the provisions of section 2 of such
369chapter of Congress, declare and proclaim that any county of the
370State of Florida within which slot machine gaming is authorized
371pursuant to chapter 551 is exempt from the provisions of section
3722 of that chapter of the Congress of the United States entitled
373"An act to prohibit transportation of gaming devices in
374interstate and foreign commerce," designated as 15 U.S.C. ss.
3751171-1177, approved January 2, 1951. All shipments of gaming
376devices, including slot machines, into any county of this state
377within which slot machine gaming is authorized pursuant to
378chapter 551 and the registering, recording, and labeling of
379which have been duly performed by the manufacturer or
380distributor thereof in accordance with sections 3 and 4 of that
381chapter of the Congress of the United States entitled "An act to
382prohibit transportation of gaming devices in interstate and
383foreign commerce," approved January 2, 1951, being ch. 1194, 64
384Stat. 1134, and also designated as 15 U.S.C. ss. 1171-1177,
385shall be deemed legal shipments thereof into this state any such
386county provided the destination of such shipments is an eligible
387facility as defined in s. 551.102 or the facility of a slot
388machine manufacturer or slot machine distributor as provided in
389s. 551.109(2)(a).
390     Section 12.  For fiscal year 2007-2008, three full-time
391equivalent positions and 125,907 in associated salary rate are
392authorized, and the sums of $197,369 in recurring funds and
393$44,178 in nonrecurring funds from the Pari-mutuel Wagering
394Trust Fund of the Department of Business and Professional
395Regulation are appropriated to the Office of the State Attorney,
39617th Judicial Circuit, for the purpose of investigating and
397prosecuting offenses associated with gaming operations.
398     Section 13.  This act shall take effect upon becoming a
399law.


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