| 1 | A bill to be entitled |
| 2 | An act relating to slot machine gaming, as authorized by |
| 3 | Section 23 of Article X of the State Constitution; |
| 4 | amending s. 551.102, F.S.; defining the term |
| 5 | "nonredeemable credits"; redefining the term "slot machine |
| 6 | revenues"; amending s. 551.103, F.S.; deleting a |
| 7 | requirement that the Division of Pari-mutuel Wagering |
| 8 | annually adjust the amount of the bond supplied by a slot |
| 9 | machine licensee; establishing the annual amount of bond |
| 10 | required; providing for procedures for drug testing; |
| 11 | amending s. 551.104, F.S.; providing for implementation of |
| 12 | a drug-testing program; amending s. 551.1045, F.S.; |
| 13 | providing procedures for temporary occupational licenses; |
| 14 | deleting provisions for temporary licensees to be adopted |
| 15 | within 180 days; amending s. 551.106, F.S.; establishing |
| 16 | when payment of the annual slot machine license fee must |
| 17 | be made by a licensee; amending s. 551.107, F.S.; |
| 18 | authorizing the division to adopt rules to create a single |
| 19 | occupational license; providing for validity; providing |
| 20 | for additional disciplinary actions and civil fines; |
| 21 | amending s. 551.109, F.S.; exempting slot machine |
| 22 | manufacturers and distributors, certain educational |
| 23 | facilities, the division, and the Department of Law |
| 24 | Enforcement from certain prohibitions against possessing |
| 25 | slot machines at a place other than the licensee's |
| 26 | facility under certain circumstances; authorizing agency |
| 27 | rulemaking; amending s. 551.114, F.S.; increasing the |
| 28 | number of slot machines a licensee may make available for |
| 29 | play; amending s. 551.116, F.S.; increasing the hours that |
| 30 | slot machine gaming areas may be open; amending s. |
| 31 | 551.121, F.S.; authorizing automatic teller machines in |
| 32 | certain areas of a pari-mutuel facility; revising |
| 33 | prohibition against cashing checks to allow cashing checks |
| 34 | outside the designated slot machine gaming area; |
| 35 | authorizing the linking of machines within the slot |
| 36 | machine facility for the purpose of progressive games; |
| 37 | amending s. 849.15, F.S.; clarifying the authority to |
| 38 | legally ship slot machines into the state under certain |
| 39 | circumstances; providing an appropriation; providing an |
| 40 | effective date. |
| 41 |
|
| 42 | Be It Enacted by the Legislature of the State of Florida: |
| 43 |
|
| 44 | Section 1. Present subsections (6) through (12) of section |
| 45 | 551.102, Florida Statutes, are redesignated as subsections (7) |
| 46 | through (13), respectively, a new subsection (6) is added to |
| 47 | that section, and present subsection (12) of that section is |
| 48 | amended, to read: |
| 49 | 551.102 Definitions.--As used in this chapter, the term: |
| 50 | (6) "Nonredeemable credits" means slot machine operating |
| 51 | credits that cannot be redeemed for cash or any other thing of |
| 52 | value by a slot machine, kiosk, or the slot machine licensee and |
| 53 | that are provided free of charge to patrons. Such credits do not |
| 54 | constitute "nonredeemable credits" until such time as they are |
| 55 | metered as credit into a slot machine and recorded in the |
| 56 | facility-based monitoring system. |
| 57 | (13)(12) "Slot machine revenues" means the total of all |
| 58 | cash and property, except nonredeemable credits, received by the |
| 59 | slot machine licensee from the operation of slot machines less |
| 60 | the amount of cash, cash equivalents, credits, and prizes paid |
| 61 | to winners of slot machine gaming. |
| 62 | Section 2. Paragraph (f) of subsection (1) of section |
| 63 | 551.103, Florida Statutes, is amended, and paragraph (j) is |
| 64 | added to that subsection, to read: |
| 65 | 551.103 Powers and duties of the division and law |
| 66 | enforcement.-- |
| 67 | (1) The division shall adopt, pursuant to the provisions |
| 68 | of ss. 120.536(1) and 120.54, all rules necessary to implement, |
| 69 | administer, and regulate slot machine gaming as authorized in |
| 70 | this chapter. Such rules must include: |
| 71 | (f) Procedures for requiring each licensee at his or her |
| 72 | own cost and expense to supply the division with a bond having |
| 73 | the penal sum of $2 million payable to the Governor and his or |
| 74 | her successors in office for each year of the licensee's first |
| 75 | year of slot machine operations. Annually thereafter, the |
| 76 | licensee shall file a bond having a penal sum that is determined |
| 77 | each year by the division pursuant to rules adopted by the |
| 78 | division and that approximates the anticipated state revenues |
| 79 | from the licensee's slot machine operation; however, the bond |
| 80 | may not in any case be less than $2 million. Any bond shall be |
| 81 | issued by a surety or sureties approved by the division and the |
| 82 | Chief Financial Officer, conditioned to faithfully make the |
| 83 | payments to the Chief Financial Officer in his or her capacity |
| 84 | as treasurer of the division. The licensee shall be required to |
| 85 | keep its books and records and make reports as provided in this |
| 86 | chapter and to conduct its slot machine operations in conformity |
| 87 | with this chapter and all other provisions of law. Such bond |
| 88 | shall be separate and distinct from the bond required in s. |
| 89 | 550.125. |
| 90 | (j) Procedures for requiring slot machine licensees to |
| 91 | implement and establish drug-testing programs for all slot |
| 92 | machine occupational licensees. |
| 93 | Section 3. Paragraph (i) of subsection (4) of section |
| 94 | 551.104, Florida Statutes, is amended to read: |
| 95 | 551.104 License to conduct slot machine gaming.-- |
| 96 | (4) As a condition of licensure and to maintain continued |
| 97 | authority for the conduct of slot machine gaming, the slot |
| 98 | machine licensee shall: |
| 99 | (i) Create and file with the division a written policy |
| 100 | for: |
| 101 | 1. Creating opportunities to purchase from vendors in this |
| 102 | state, including minority vendors. |
| 103 | 2. Creating opportunities for employment of residents of |
| 104 | this state, including minority residents. |
| 105 | 3. Ensuring opportunities for construction services from |
| 106 | minority contractors. |
| 107 | 4. Ensuring that opportunities for employment are offered |
| 108 | on an equal, nondiscriminatory basis. |
| 109 | 5. Training for employees on responsible gaming and |
| 110 | working with a compulsive or addictive gambling prevention |
| 111 | program to further its purposes as provided for in s. 551.118. |
| 112 | 6. The implementation of a drug-testing program that |
| 113 | includes, but is not limited to, requiring each employee to sign |
| 114 | an agreement that he or she understands that the slot machine |
| 115 | facility is a drug-free workplace. |
| 116 |
|
| 117 | The slot machine licensee shall use the Internet-based job- |
| 118 | listing system of the Agency for Workforce Innovation in |
| 119 | advertising employment opportunities. Beginning in June 2007, |
| 120 | each slot machine licensee shall provide an annual report to the |
| 121 | division containing information indicating compliance with this |
| 122 | paragraph in regard to minority persons. |
| 123 | Section 4. Section 551.1045, Florida Statutes, is amended |
| 124 | to read: |
| 125 | 551.1045 Temporary licenses.-- |
| 126 | (1) Notwithstanding any provision of s. 120.60 to the |
| 127 | contrary, the division may issue a temporary occupational |
| 128 | license upon the receipt of a complete application from the |
| 129 | applicant and a determination that the applicant has not been |
| 130 | convicted of or had adjudication withheld on any disqualifying |
| 131 | criminal offense. The temporary occupational license remains |
| 132 | valid until such time as the division grants an occupational |
| 133 | license or notifies the applicant of its intended decision to |
| 134 | deny the applicant a license pursuant to the provisions of s. |
| 135 | 120.60. The division shall adopt rules to administer this |
| 136 | subsection. However, not more than one temporary license may be |
| 137 | issued for any person in any year. |
| 138 | (1)(a) After 180 days following the effective date of this |
| 139 | act, if the division has not adopted rules to implement the |
| 140 | provisions of this chapter that allow for the issuance of slot |
| 141 | machine licenses within such 180 days, the division shall issue |
| 142 | a temporary slot machine license to an applicant if the |
| 143 | applicant holds a valid pari-mutuel permit in good standing |
| 144 | under chapter 550, the applicant's ownership interests have been |
| 145 | previously approved as provided in chapter 550, and the |
| 146 | applicant has conducted live racing or games during the calendar |
| 147 | years 2002 and 2003 and has paid the license fee provided in s. |
| 148 | 551.106(1). The slot machine license will permit the licensee to |
| 149 | conduct slot machine gaming in the designated slot machine |
| 150 | gaming areas of the eligible facility. |
| 151 | (b) The temporary license is valid until the division has |
| 152 | adopted rules implementing the provisions of this chapter and |
| 153 | taken final action on the filed application under its final |
| 154 | adopted rules. Once the division has adopted rules implementing |
| 155 | the provisions of this chapter, it shall complete review of any |
| 156 | filed application and shall issue a license under s. 551.104 if |
| 157 | the licensee meets the requirements of this chapter and rules |
| 158 | adopted by the division. |
| 159 | (2)(a) A manufacturer or distributor of slot machines who |
| 160 | has applied for a license under s. 551.107 shall be issued a |
| 161 | temporary business occupational license if it holds a valid |
| 162 | license to manufacture or distribute slot machines in a state |
| 163 | where gaming is lawful. |
| 164 | (b) The temporary license is valid until the division has |
| 165 | adopted rules implementing the provisions of this chapter and |
| 166 | taken final action on the filed application under its final |
| 167 | adopted rules. Once the division has adopted rules implementing |
| 168 | the provisions of this chapter, it shall complete review of any |
| 169 | filed application and shall issue a license under s. 551.107 if |
| 170 | the licensee meets the requirements of this chapter and rules |
| 171 | adopted by the division. |
| 172 | (2)(3) A temporary license issued under this section is |
| 173 | nontransferable. Any temporary license issued under this section |
| 174 | shall be valid during the pendency of any challenge to the |
| 175 | rules. |
| 176 | Section 5. Paragraph (a) of subsection (1) of section |
| 177 | 551.106, Florida Statutes, is amended to read: |
| 178 | 551.106 License fee; tax rate; penalties.-- |
| 179 | (1) LICENSE FEE.-- |
| 180 | (a) Upon submission of the initial application for a slot |
| 181 | machine license and annually thereafter, on the anniversary date |
| 182 | of the issuance of the initial license upon submission of an |
| 183 | application for renewal of the slot machine license, the |
| 184 | licensee must pay to the division a nonrefundable license fee of |
| 185 | $3 million for the succeeding 12 months of licensure. The |
| 186 | license fee shall be deposited into the Pari-mutuel Wagering |
| 187 | Trust Fund of the Department of Business and Professional |
| 188 | Regulation to be used by the division and the Department of Law |
| 189 | Enforcement for investigations, regulation of slot machine |
| 190 | gaming, and enforcement of slot machine gaming provisions under |
| 191 | this chapter. These payments shall be accounted for separately |
| 192 | from taxes or fees paid pursuant to the provisions of chapter |
| 193 | 550. |
| 194 | Section 6. Subsection (2) and paragraph (b) of subsection |
| 195 | (4) of section 551.107, Florida Statutes, are amended, and |
| 196 | subsections (9), (10), and (11) are added to that section, to |
| 197 | read: |
| 198 | 551.107 Slot machine occupational license; findings; |
| 199 | application; fee.-- |
| 200 | (2)(a) The following slot machine occupational licenses |
| 201 | shall be issued to persons or entities that, by virtue of the |
| 202 | positions they hold, might be granted access to slot machine |
| 203 | gaming areas or to any other person or entity in one of the |
| 204 | following categories: |
| 205 | 1. General occupational licenses for general employees, |
| 206 | including food service, maintenance, and other similar service |
| 207 | and support employees having access to the slot machine gaming |
| 208 | area. |
| 209 | 2. Professional occupational licenses for any person, |
| 210 | proprietorship, partnership, corporation, or other entity that |
| 211 | is authorized by a slot machine licensee to manage, oversee, or |
| 212 | otherwise control daily operations as a slot machine manager, a |
| 213 | floor supervisor, security personnel, or any other similar |
| 214 | position of oversight of gaming operations, or any person who is |
| 215 | not an employee of the slot machine licensee and who provides |
| 216 | maintenance, repair, or upgrades or otherwise services a slot |
| 217 | machine or other slot machine equipment. |
| 218 | 3. Business occupational licenses for any slot machine |
| 219 | management company or company associated with slot machine |
| 220 | gaming, any person who manufactures, distributes, or sells slot |
| 221 | machines, slot machine paraphernalia, or other associated |
| 222 | equipment to slot machine licensees, or any company that sells |
| 223 | or provides goods or services associated with slot machine |
| 224 | gaming to slot machine licensees, or any person not an employee |
| 225 | of the slot machine licensee who provides maintenance, repair, |
| 226 | or upgrades or otherwise services a slot machine or other slot |
| 227 | machine equipment. |
| 228 | (b) The division may issue one license to combine licenses |
| 229 | under this section with pari-mutuel occupational licenses and |
| 230 | cardroom licenses pursuant to s. 550.105(2)(b). The division |
| 231 | shall adopt rules pertaining to occupational licenses under this |
| 232 | subsection. Such rules may specify, but need not be limited to, |
| 233 | requirements and restrictions for licensed occupations and |
| 234 | categories, procedures to apply for any license or combination |
| 235 | of licenses, disqualifying criminal offenses for a licensed |
| 236 | occupation or categories of occupations, and which types of |
| 237 | occupational licenses may be combined into a single license |
| 238 | under this section. The fingerprinting requirements of |
| 239 | subsection (7) apply to any combination license that includes |
| 240 | slot machine license privileges under this section. The division |
| 241 | may not adopt a rule allowing the issuance of an occupational |
| 242 | license to any person who does not meet the minimum background |
| 243 | qualifications under this section. |
| 244 | (b) Notwithstanding any provision of law to the contrary, |
| 245 | a pari-mutuel occupational licensee holding a currently valid |
| 246 | pari-mutuel occupational license is eligible to act as a slot |
| 247 | machine occupational licensee upon the effective date of this |
| 248 | act until such time as rules have been adopted and such pari- |
| 249 | mutuel occupational licensee has been provided a reasonable |
| 250 | opportunity to comply with the rules. |
| 251 | (c) Slot machine occupational licenses are not |
| 252 | transferable. |
| 253 | (4) |
| 254 | (b) A slot machine license or combination license is valid |
| 255 | for the same term as a pari-mutuel occupational license issued |
| 256 | pursuant to s. 550.105(1). The division shall establish, by |
| 257 | rule, a schedule for the annual renewal of slot machine |
| 258 | occupational licenses. |
| 259 | (9) The division may deny, revoke, or suspend any |
| 260 | occupational license if the applicant or holder of the license |
| 261 | accumulates unpaid obligations, defaults in obligations, or |
| 262 | issues drafts or checks that are dishonored or for which payment |
| 263 | is refused without reasonable cause. |
| 264 | (10) The division may fine or suspend, revoke, or place |
| 265 | conditions upon the license of any licensee who provides false |
| 266 | information under oath regarding an application for a license or |
| 267 | an investigation by the division. |
| 268 | (11) The division may impose a civil fine of up to $5,000 |
| 269 | for each violation of this chapter or the rules of the division |
| 270 | in addition to or in lieu of any other penalty provided for in |
| 271 | this section. The division may adopt a penalty schedule for |
| 272 | violations of this chapter or any rule adopted pursuant to this |
| 273 | chapter for which it would impose a fine in lieu of a suspension |
| 274 | and adopt rules allowing for the issuance of citations, |
| 275 | including procedures to address such citations, to persons who |
| 276 | violate such rules. In addition to any other penalty provided by |
| 277 | law, the division may exclude from all licensed slot machine |
| 278 | facilities in this state, for a period not to exceed the period |
| 279 | of suspension, revocation, or ineligibility, any person whose |
| 280 | occupational license application has been declared ineligible to |
| 281 | hold an occupational license or whose occupational license has |
| 282 | been suspended or revoked by the division. |
| 283 | Section 7. Subsection (2) of section 551.109, Florida |
| 284 | Statutes, is amended to read: |
| 285 | 551.109 Prohibited acts; penalties.-- |
| 286 | (2) Except as otherwise provided by law and in addition to |
| 287 | any other penalty, any person who possesses a slot machine |
| 288 | without the license required by this chapter or who possesses a |
| 289 | slot machine at any location other than at the slot machine |
| 290 | licensee's facility is subject to an administrative fine or |
| 291 | civil penalty of up to $10,000 per machine. The prohibition in |
| 292 | this subsection does not apply to: |
| 293 | (a) Slot machine manufacturers or slot machine |
| 294 | distributors that hold appropriate licenses issued by the |
| 295 | division who are authorized to maintain a slot machine storage |
| 296 | and maintenance facility at any location in a county in which |
| 297 | slot machine gaming is authorized by this chapter. The division |
| 298 | may adopt rules regarding security and access to the storage |
| 299 | facility and inspections by the division. |
| 300 | (b) Certified educational facilities that are authorized |
| 301 | to maintain slot machines for the sole purpose of education and |
| 302 | licensure, if any, of slot machine technicians, inspectors, or |
| 303 | investigators. The division and the Department of Law |
| 304 | Enforcement may possess slot machines for training and testing |
| 305 | purposes. The division may adopt rules regarding the regulation |
| 306 | of any such slot machines used for educational, training, or |
| 307 | testing purposes. |
| 308 | Section 8. Subsection (1) of section 551.114, Florida |
| 309 | Statutes, is amended to read: |
| 310 | 551.114 Slot machine gaming areas.-- |
| 311 | (1) A slot machine licensee may make available for play up |
| 312 | to 2,000 1,500 slot machines within the property of the |
| 313 | facilities of the slot machine licensee. |
| 314 | Section 9. Section 551.116, Florida Statutes, is amended |
| 315 | to read: |
| 316 | 551.116 Days and hours of operation.--Slot machine gaming |
| 317 | areas may be open daily throughout the year. The slot machine |
| 318 | gaming areas may be open a cumulative amount of 18 hours per day |
| 319 | on Monday through Friday and 24 for a maximum of 16 hours per |
| 320 | day on Saturday and Sunday and on those holidays specified in s. |
| 321 | 110.117(1). |
| 322 | Section 10. Section 551.121, Florida Statutes, is amended |
| 323 | to read: |
| 324 | 551.121 Prohibited activities and devices; exceptions.-- |
| 325 | (1) Complimentary or reduced-cost alcoholic beverages may |
| 326 | not be served to persons playing a slot machine. Alcoholic |
| 327 | beverages served to persons playing a slot machine shall cost at |
| 328 | least the same amount as alcoholic beverages served to the |
| 329 | general public at a bar within the facility. |
| 330 | (2) A slot machine licensee may not make any loan, provide |
| 331 | credit, or advance cash in order to enable a person to play a |
| 332 | slot machine. This subsection shall not prohibit automated |
| 333 | ticket redemption machines that dispense cash resulting from the |
| 334 | redemption of tickets from being located in the designated slot |
| 335 | machine gaming area of the slot machine licensee. |
| 336 | (3) A slot machine licensee may not allow any automated |
| 337 | teller machine or similar device designed to provide credit or |
| 338 | dispense cash to be located within the designated slot machine |
| 339 | gaming areas of a facility of a facilities of the slot machine |
| 340 | licensee. |
| 341 | (4)(a) A slot machine licensee may not accept or cash any |
| 342 | personal, third-party, corporate, business, or government-issued |
| 343 | check from any person within the designated slot machine gaming |
| 344 | areas of a facility of a slot machine licensee. |
| 345 | (b) Except as provided in paragraph (c) for employees of |
| 346 | the facility, a slot machine licensee or operator shall not |
| 347 | accept or cash for any person within the property of the |
| 348 | facility any government-issued check, third party check, or |
| 349 | payroll check made payable to an individual. |
| 350 | (c) Outside the designated slot machine gaming areas, a |
| 351 | slot machine licensee or operator may accept or cash a check for |
| 352 | an employee of the facility who is prohibited from wagering on a |
| 353 | slot machine under s. 551.108(5), a check made directly payable |
| 354 | to a person licensed by the division, or a check made directly |
| 355 | payable to the slot machine licensee or operator from: |
| 356 | 1. A pari-mutuel patron; or |
| 357 | 2. A pari-mutuel facility in this state or in another |
| 358 | state. |
| 359 | (d) Unless accepting or cashing a check is prohibited by |
| 360 | this subsection, nothing shall prohibit a slot machine licensee |
| 361 | or operator from accepting and depositing in its accounts checks |
| 362 | received in the normal course of business. |
| 363 | (5) A slot machine, or the computer operating system |
| 364 | linking the slot machine, may not be linked by any means to any |
| 365 | other slot machine or computer operating system within the |
| 366 | facility of a another slot machine licensee. A progressive |
| 367 | system may not be used in conjunction with slot machines within |
| 368 | or between licensed facilities. |
| 369 | (6) A slot machine located within a licensed facility |
| 370 | shall accept only tickets or paper currency or an electronic |
| 371 | payment system for wagering and return or deliver payouts to the |
| 372 | player in the form of tickets that may be exchanged for cash, |
| 373 | merchandise, or other items of value. The use of coins, credit |
| 374 | or debit cards, tokens, or similar objects is specifically |
| 375 | prohibited. However, an electronic credit system may be used for |
| 376 | receiving wagers and making payouts. |
| 377 | Section 11. Subsection (2) of section 849.15, Florida |
| 378 | Statutes, is amended to read: |
| 379 | 849.15 Manufacture, sale, possession, etc., of coin- |
| 380 | operated devices prohibited.-- |
| 381 | (2) Pursuant to section 2 of that chapter of the Congress |
| 382 | of the United States entitled "An act to prohibit transportation |
| 383 | of gaming devices in interstate and foreign commerce," approved |
| 384 | January 2, 1951, being ch. 1194, 64 Stat. 1134, and also |
| 385 | designated as 15 U.S.C. ss. 1171-1177, the State of Florida, |
| 386 | acting by and through the duly elected and qualified members of |
| 387 | its Legislature, does hereby in this section, and in accordance |
| 388 | with and in compliance with the provisions of section 2 of such |
| 389 | chapter of Congress, declare and proclaim that any county of the |
| 390 | State of Florida within which slot machine gaming is authorized |
| 391 | pursuant to chapter 551 is exempt from the provisions of section |
| 392 | 2 of that chapter of the Congress of the United States entitled |
| 393 | "An act to prohibit transportation of gaming devices in |
| 394 | interstate and foreign commerce," designated as 15 U.S.C. ss. |
| 395 | 1171-1177, approved January 2, 1951. All shipments of gaming |
| 396 | devices, including slot machines, into any county of this state |
| 397 | within which slot machine gaming is authorized pursuant to |
| 398 | chapter 551 and the registering, recording, and labeling of |
| 399 | which have been duly performed by the manufacturer or |
| 400 | distributor thereof in accordance with sections 3 and 4 of that |
| 401 | chapter of the Congress of the United States entitled "An act to |
| 402 | prohibit transportation of gaming devices in interstate and |
| 403 | foreign commerce," approved January 2, 1951, being ch. 1194, 64 |
| 404 | Stat. 1134, and also designated as 15 U.S.C. ss. 1171-1177, |
| 405 | shall be deemed legal shipments thereof into this state any such |
| 406 | county provided the destination of such shipments is an eligible |
| 407 | facility as defined in s. 551.102 or the facility of a slot |
| 408 | machine manufacturer or slot machine distributor as provided in |
| 409 | s. 551.109(2)(a). |
| 410 | Section 12. For fiscal year 2007-2008, three full-time |
| 411 | equivalent positions and 125,907 in associated salary rate are |
| 412 | authorized, and the sums of $197,369 in recurring funds and |
| 413 | $44,178 in nonrecurring funds from the Pari-mutuel Wagering |
| 414 | Trust Fund of the Department of Business and Professional |
| 415 | Regulation are appropriated to the Office of the State Attorney, |
| 416 | 17th Judicial Circuit, for the purpose of investigating and |
| 417 | prosecuting offenses associated with gaming operations. |
| 418 | Section 13. This act shall take effect upon becoming a |
| 419 | law. |