HB 1419

1
A bill to be entitled
2An act relating to pari-mutuel permitholders; amending s.
3550.0351, F.S.; authorizing a thoroughbred permitholder to
4conduct one additional charity day to provide for the care
5of retired thoroughbreds pursuant to an agreement on file
6with the division entered into by certain parties;
7amending s. 550.26165, F.S.; revising provisions for
8breeders', stallion, and special racing awards; providing
9for awards to breeders of registered Florida-bred horses
10participating in horseraces and to the owners of stallions
11who sired Florida-bred horses participating in stakes
12races; providing that such awards may be paid on races
13taking place in or out of this state pursuant to the
14annual plan of the breeders' association approved by the
15Division of Pari-mutuel Wagering within the Department of
16Business and Professional Regulation; revising award rate
17requirements; providing for award rates to be established
18in the plan; requiring the agreement entered into by
19certain parties that establishes the rate, procedure, and
20eligibility requirements for certain awards to be on file
21with the division; revising provisions for the breeders'
22association plan that provides rates and procedures for
23payment of breeders' and stallion awards; providing for
24approval of the plan by the division; revising restriction
25on amendments to the plan; amending s. 550.2625, F.S.;
26revising provisions for payment by permitholders of
27certain amounts for breeders', stallion, and special
28racing awards; revising amount of the purse account used
29for Florida owners' awards; providing that the purse
30account shall include all sources of purse funds; removing
31an exemption to owners' award provisions; revising
32provisions for payment of certain moneys for breeders',
33stallion, and special racing awards; providing for such
34awards to breeders and owners of sires of registered
35Florida-bred thoroughbred horses participating in certain
36races; authorizing the Florida Thoroughbred Breeders'
37Association to charge an additional fee for registration
38to provide for retired thoroughbreds; requiring use of the
39fee pursuant to the association's annual plan; revising
40provisions for certain awards; revising provisions for the
41association's annual plan; removing uniform rate
42requirements; providing that requirements, rates, and
43procedures for certain awards be part of the association's
44annual plan; requiring the association to maintain certain
45records; revising requirements that the association keep
46records of certain transactions; requiring the plan be
47approved by the division based upon a determination that
48the plan complies with specified requirements; revising
49provisions for funds dedicated to certain Florida owners'
50awards; providing for owners' awards in the absence of a
51written agreement on file with the division; amending s.
52550.5251, F.S.; revising requirements for preference to
53Florida-bred horses in races held by thoroughbred
54permitholders; amending s. 849.086, F.S.; authorizing
55licensed horserace permitholders to operate a cardroom
56during certain hours; providing conditions for such
57operation; providing an effective date.
58
59Be It Enacted by the Legislature of the State of Florida:
60
61     Section 1.  Subsection (9) is added to section 550.0351,
62Florida Statutes, to read:
63     550.0351  Charity racing days.--
64     (2)  The proceeds of charity performances shall be paid to
65qualified beneficiaries selected by the permitholders from an
66authorized list of charities on file with the division. Eligible
67charities include any charity that provides evidence of
68compliance with the provisions of chapter 496 and evidence of
69possession of a valid exemption from federal taxation issued by
70the Internal Revenue Service. In addition, the authorized list
71must include the Racing Scholarship Trust Fund, the Historical
72Resources Operating Trust Fund, major state and private
73institutions of higher learning, and Florida community colleges.
74     (9)  In addition to the charity days authorized by this
75section, a thoroughbred permitholder is authorized to conduct
76one additional charity day to provide, at a facility or
77facilities in this state, for the care of thoroughbreds retired
78from racing. Notwithstanding subsection (2), the proceeds from
79such charity day performances shall be used for this designated
80purpose pursuant to a written agreement on file with the
81division entered into by the permitholder, the Florida
82Thoroughbred Breeders' Association, and the association
83representing a majority of the thoroughbred racehorse owners and
84trainers at that location.
85     Section 2.  Subsections (1), (2), and (3) of section
86550.26165, Florida Statutes, are amended to read:
87     550.26165  Breeders' awards.--
88     (1)  The purpose of this section is to encourage the
89agricultural activity of breeding and training racehorses in
90this state. Funds Moneys dedicated in this chapter for use as
91breeders' awards and stallion awards are to be used for awards
92to breeders of registered Florida-bred horses participating in
93winning horseraces, and for similar awards to the owners of
94stallions who sired Florida-bred horses participating in winning
95stakes races, if the stallions are registered as Florida
96stallions standing in this state. Breeders' and stallion awards
97may be paid on races taking place in this state and on races
98taking place in other states or countries pursuant to the annual
99plan approved by the division under subsection (3).
100     (a)  Such awards shall be given at a uniform rate to all
101winners of the awards at the rates established in the annual
102plan approved by the division pursuant to subsection (3), shall
103not be greater than 20 percent of the announced gross purse, and
104shall not be less than 15 percent of the announced gross purse
105if funds are available. The rates for breeders' awards may vary
106based upon the place of finish, class of race, the state or
107country in which the race took place, and the state in which the
108stallion siring the horse was standing when the horse was
109conceived. The rates for stallion awards may vary based upon the
110place of finish, class of race, and the state or country in
111which the race took place.
112     (b)  In addition, No less than 17 percent nor more than 40
113percent, as determined by the Florida Thoroughbred Breeders'
114Association, of the funds moneys dedicated in this chapter for
115use as breeders' awards and stallion awards for thoroughbreds
116shall be returned pro rata to the permitholders that generated
117the moneys for special racing awards to be distributed by the
118permitholders to owners of thoroughbred horses participating in
119prescribed thoroughbred stakes races, nonstakes races, or both,
120all in accordance with a written agreement on file with the
121division establishing the rate, procedure, and eligibility
122requirements for such awards entered into by the permitholder,
123the Florida Thoroughbred Breeders' Association, and the Florida
124Horsemen's Benevolent and Protective Association, Inc., except
125that the plan for the distribution by any permitholder located
126in the area described in s. 550.615(9) shall be agreed upon by
127that permitholder, the Florida Thoroughbred Breeders'
128Association, and the association representing a majority of the
129thoroughbred racehorse owners and trainers at that location.
130     (c)  Awards for thoroughbred races are to be paid through
131the Florida Thoroughbred Breeders' Association, and awards for
132standardbred races are to be paid through the Florida
133Standardbred Breeders and Owners Association.
134     (d)  Among other sources specified in this chapter, funds
135moneys for thoroughbred breeders', stallion, and special racing
136awards will come from the 0.955 percent of handle for
137thoroughbred races conducted, received, broadcast, or simulcast
138under this chapter as provided in s. 550.2625(3). Funds The
139moneys for quarter horse and harness breeders' awards will come
140from the breaks and uncashed tickets on live quarter horse and
141harness racing performances and 1 percent of handle on
142intertrack wagering. The funds for these breeders' awards shall
143be paid to the respective breeders' associations by the
144permitholders conducting the races.
145     (2)  Each breeders' association shall develop a plan each
146year that will provide rates for a uniform rate of payment and
147procedure for breeders' and stallion awards. The plan for
148payment of breeders' and stallion awards may set a cap on
149winnings and may limit, exclude, or defer payment of breeders'
150and stallion awards based upon any of the factors set forth in
151paragraph (1)(a) payments on certain classes of races, such as
152the Florida stallion stakes races, in order to assure that there
153are adequate revenues to meet the proposed uniform rate.
154Priority shall be placed on imposing such restrictions in lieu
155of allowing the uniform rate for breeders' and stallion awards
156to be less than 15 percent of the total purse payment. The plan
157may reduce or eliminate stallion awards in order to enhance
158breeders' awards. The plan must provide for the maximum possible
159payments within revenues.
160     (3)  Breeders' associations shall submit their plans to the
161division for approval at least 60 days before the beginning of
162the payment year. The payment year may be a calendar year or any
16312-month period, but once established, the yearly base may not
164be changed except for compelling reasons. The division shall
165approve the plan if it complies with the requirements of this
166chapter. Once a plan is approved by the division, the division
167may not allow the plan may not to be amended during the year
168unless such amendment is deemed by the division to be in the
169best interests of the respective breeding industry, except for
170the most compelling reasons.
171     Section 3.  Subsections (1), (3), and (6) and paragraph (e)
172of subsection (2) of section 550.2625, Florida Statutes, are
173amended to read:
174     550.2625  Horseracing; minimum purse requirement, Florida
175breeders', and owners', and special racing awards.--
176     (1)  The purse structure and the availability of breeders',
177stallion, and special racing breeder awards are important
178factors in encouraging the agricultural activity of breeding and
179training racehorses in this state, and in attracting the entry
180of well-bred horses in racing meets in this state which in turn
181helps to produce maximum racing revenues for the state and the
182counties.
183     (2)  Each permitholder conducting a horserace meet is
184required to pay from the takeout withheld on pari-mutuel pools a
185sum for purses in accordance with the type of race performed.
186     (e)  An amount equal to 7 8.5 percent of the purse account
187generated through intertrack wagering and interstate
188simulcasting will be used for Florida owners' awards as set
189forth in subsection (6) (3). The purse account shall include all
190sources of purse funds, including funds derived from pari-mutuel
191wagering, cardrooms, slot machines, and any other form of
192gaming. Any thoroughbred permitholder with an average blended
193takeout which does not exceed 20 percent and with an average
194daily purse distribution excluding sponsorship, entry fees, and
195nominations exceeding $225,000 is exempt from the provisions of
196this paragraph.
197     (3)  Each horseracing permitholder conducting any
198thoroughbred race under this chapter, including any intertrack
199race taken pursuant to ss. 550.615-550.6305 or any interstate
200simulcast taken pursuant to s. 550.3551(3), shall pay a sum
201equal to 0.955 percent on all pari-mutuel pools conducted during
202any such race for the payment of breeders', stallion, and or
203special racing awards as authorized in this chapter. This
204subsection also applies to all Breeder's Cup races conducted
205outside this state taken pursuant to s. 550.3551(3). On any race
206originating live in this state which is broadcast out-of-state
207to any location at which wagers are accepted pursuant to s.
208550.3551(2), the host track is required to pay 3.475 percent of
209the gross revenue derived from such out-of-state broadcasts as
210breeders', stallion, or special racing awards. The Florida
211Thoroughbred Breeders' Association is authorized to receive
212these payments from the permitholders and make payments of
213awards earned. The Florida Thoroughbred Breeders' Association
214has the right to withhold up to 10 percent of the permitholder's
215payments under this section as a fee for administering the
216payments of awards and for general promotion of the industry.
217The permitholder shall remit these payments to the Florida
218Thoroughbred Breeders' Association by the 5th day of each
219calendar month for such sums accruing during the preceding
220calendar month and shall report such payments to the division as
221prescribed by the division. With the exception of the 10-percent
222fee, the moneys paid by the permitholders shall be maintained in
223a separate, interest-bearing account, and such payments together
224with any interest earned shall be used exclusively for the
225payment of breeders', stallion, and or special racing awards in
226accordance with the following provisions:
227     (a)  The breeder of each Florida-bred thoroughbred horse
228participating in winning a thoroughbred horse race may receive a
229breeders' is entitled to an award of up to, but not exceeding,
23020 percent of the announced gross purse, including nomination
231fees, eligibility fees, starting fees, supplementary fees, and
232moneys added by the sponsor of the race.
233     (b)  The owner or owners of the sire of a Florida-bred
234thoroughbred horse that participates in wins a stakes race may
235receive is entitled to a stallion award of up to, but not
236exceeding, 20 percent of the announced gross purse, including
237nomination fees, eligibility fees, starting fees, supplementary
238fees, and moneys added by the sponsor of the race.
239     (c)  The owners of thoroughbred horses participating in
240thoroughbred stakes races, nonstakes races, or both may receive
241a special racing award in accordance with the agreement
242established pursuant to s. 550.26165(1)(b).
243     (d)  In order for a breeder of a Florida-bred thoroughbred
244horse to be eligible to receive a breeders' breeder's award, the
245horse must have been registered as a Florida-bred horse with the
246Florida Thoroughbred Breeders' Association, and the Jockey Club
247certificate for the horse must show that it has been duly
248registered as a Florida-bred horse as evidenced by the seal and
249proper serial number of the Florida Thoroughbred Breeders'
250Association registry. The Florida Thoroughbred Breeders'
251Association shall be permitted to charge the registrant a
252reasonable fee for this verification and registration and may
253elect to charge the registrant an additional fee to provide for
254the care of retired thoroughbreds as a condition of
255registration. Any such additional fee shall be used for this
256designated purpose pursuant to the annual plan of the Florida
257Thoroughbred Breeders' Association approved by the division
258under s. 550.26165.
259     (e)  As part of its annual plan approved by the division,
260the Florida Thoroughbred Breeders' Association shall establish
261eligibility requirements for the payment of stallion awards if
262the plan provides for payment of such awards. The eligibility
263requirements must include registration with the Florida
264Thoroughbred Breeders' Association of the stallion and of the
265Florida-bred thoroughbred horse participating in the stakes race
266and may condition eligibility on the period of time during which
267the sire is standing in this state, except that the requirements
268may exclude from the standing requirements those stallions
269leaving the state exclusively for prescribed medical treatment.
270In order for an owner of the sire of a thoroughbred horse
271winning a stakes race to be eligible to receive a stallion
272award, the stallion must have been registered with the Florida
273Thoroughbred Breeders' Association, and the breeding of the
274registered Florida-bred horse must have occurred in this state.
275The stallion must be standing permanently in this state during
276the period of time between February 1 and June 15 of each year
277or, if the stallion is dead, must have stood permanently in this
278state for a period of not less than 1 year immediately prior to
279its death. The removal of a stallion from this state during the
280period of time between February 1 and June 15 of any year for
281any reason, other than exclusively for prescribed medical
282treatment, as approved by the Florida Thoroughbred Breeders'
283Association, renders the owner or owners of the stallion
284ineligible to receive a stallion award under any circumstances
285for offspring sired prior to removal; however, if a removed
286stallion is returned to this state, all offspring sired
287subsequent to the return make the owner or owners of the
288stallion eligible for the stallion award but only for those
289offspring sired subsequent to such return to this state. The
290Florida Thoroughbred Breeders' Association shall maintain
291complete records showing the date the stallion arrived in this
292state for the first time, whether or not the stallion remained
293in the state permanently, the location of the stallion, and
294whether the stallion is still standing in this state and
295complete records showing awards earned, received, and
296distributed. The association may charge the owner, owners, or
297breeder a reasonable fee for this service.
298     (f)  A permitholder conducting a thoroughbred horse race
299under the provisions of this chapter shall, within 30 days after
300the end of the race meet during which the race is conducted,
301certify to the Florida Thoroughbred Breeders' Association such
302information relating to the thoroughbred horses participating in
303winning a stakes or other horserace at the meet as may be
304required to determine the eligibility for payment of breeders',
305stallion, and special racing awards.
306     (g)  The Florida Thoroughbred Breeders' Association shall
307maintain complete records showing the horses participating
308starters and winners in all races taking place conducted at
309thoroughbred tracks in this state and in those races taking
310place in another state or country which may create eligibility
311for an award pursuant to the approved annual plan; shall
312maintain complete records showing awards earned, received, and
313distributed; and may charge the owner, owners, or breeder a
314reasonable fee for this service.
315     (h)  The Florida Thoroughbred Breeders' Association shall
316annually adopt a plan pursuant to s. 550.26165 establishing the
317establish a uniform rate and procedure for the payment of
318breeders' and stallion awards and shall pay such awards make
319breeders' and stallion award payments in strict compliance with
320the established uniform rate and procedure plan. The plan may
321set a cap on winnings and may limit, exclude, or defer payments
322to certain classes of races, such as the Florida stallion stakes
323races, in order to assure that there are adequate revenues to
324meet the proposed uniform rate. Such plan must include proposals
325for the general promotion of the industry. Priority shall be
326placed upon imposing such restrictions in lieu of allowing the
327uniform rate to be less than 15 percent of the total purse
328payment. Before implementation, the uniform rate and procedure
329plan must be approved by the division based upon a determination
330that the plan complies with the requirements of this chapter
331before implementation. In the absence of an approved plan and
332procedure, the authorized rate for breeders' and stallion awards
333is 15 percent of the announced gross purse for each race. Such
334purse must include nomination fees, eligibility fees, starting
335fees, supplementary fees, and moneys added by the sponsor of the
336race. If the funds in the account for payment of breeders' and
337stallion awards are not sufficient to meet all earned breeders'
338and stallion awards, those breeders and stallion owners not
339receiving payments have first call on any subsequent receipts in
340that or any subsequent year.
341     (i)  The Florida Thoroughbred Breeders' Association shall
342keep accurate records showing receipts and disbursements of such
343payments and shall annually file a full and complete report to
344the division showing such receipts and disbursements and the
345sums withheld by the association under this subsection for
346administration. The division may audit the records and accounts
347of the Florida Thoroughbred Breeders' Association to determine
348that payments have been made to eligible breeders and stallion
349owners in accordance with this section.
350     (j)  If the division finds that the Florida Thoroughbred
351Breeders' Association has not complied with any provision of
352this section, the division may order the association to cease
353and desist from receiving funds and administering funds received
354under this section. If the division enters such an order, the
355permitholder shall make the payments authorized in this section
356to the division for deposit into the Pari-mutuel Wagering Trust
357Fund; and any funds in the Florida Thoroughbred Breeders'
358Association account shall be immediately paid to the Division of
359Pari-mutuel Wagering for deposit to the Pari-mutuel Wagering
360Trust Fund. The division shall authorize payment from these
361funds to any breeder or stallion owner entitled to an award that
362has not been previously paid by the Florida Thoroughbred
363Breeders' Association in accordance with the applicable rate.
364     (6)(a)  Funds dedicated to Florida owners' awards in
365paragraph (2)(e) shall The takeout may be used for the payment
366of awards to owners of registered Florida-bred horses placing
367first in a claiming race, an allowance race, a maiden special
368race, or a stakes race in which the announced purse, exclusive
369of entry and starting fees and added moneys, does not exceed
370$40,000.
371     (b)  The permitholder shall determine for each qualified
372race the amount of the Florida owners' award for which a
373registered Florida-bred horse will be eligible. The amount of
374the available owners' award shall be established in the same
375manner in which purses are established and shall be published in
376the condition book for the period during which the race is to be
377conducted. No single award may exceed 50 percent of the gross
378purse for the race won.
379     (c)  If the moneys generated under paragraph (a) during the
380meet exceed the Florida owners' awards earned during the meet,
381the excess funds shall be held in a separate interest-bearing
382account, and the total interest and principal shall be used to
383increase the owners' awards during the permitholder's next meet.
384     (d)  Breeders' awards authorized by subsections (3) and (4)
385may not be paid on Florida owners' awards.
386     (e)  The provisions of this subsection shall govern Florida
387owners' awards in the absence of a written agreement on file
388with the division establishing the rate, procedure, and
389eligibility requirements for Florida owners' awards, including
390place of finish, class of race, and maximum award, entered into
391by the permitholder, the breeders' association, and the
392association representing a majority of the racehorse owners and
393trainers at that location.
394     Section 4.  Paragraph (a) subsection (5) of section
395550.5251, Florida Statutes, is amended to read:
396     550.5251  Florida thoroughbred racing; certain permits;
397operating days.--
398     (5)(a)  Each licensed thoroughbred permitholder in this
399state must run no less than an average of one race per racing
400day restricted to in which horses bred in this state and duly
401registered with the Florida Thoroughbred Breeders' Association,
402unless otherwise agreed to in writing by the permitholder, the
403Florida Thoroughbred Breeders' Association, and the association
404representing a majority of the thoroughbred racehorse owners and
405trainers at that location have preference as entries over non-
406Florida-bred horses. All licensed thoroughbred racetracks shall
407write the conditions for such restricted races in which Florida-
408bred horses are preferred so as to assure that all Florida-bred
409horses available for racing at such tracks are given full
410opportunity to run in the class of races for which they are
411qualified. The opportunity of running must be afforded to each
412class of horses in the proportion that the number of horses in
413this class bears to the total number of Florida-bred horses
414available. A track is not required to write conditions for a
415race to accommodate a class of horses for which a race would
416otherwise not be run at the track during its meet meeting.
417     Section 5.  Paragraphs (c), (d), (e), and (f) of subsection
418(7) of section 849.086, Florida Statutes, are redesignated as
419paragraphs (d), (e), (f), and (g), respectively, and a new
420paragraph (c) is added to that subsection, to read:
421     849.086  Cardrooms authorized.--
422     (7)  CONDITIONS FOR OPERATING A CARDROOM.--
423     (c)  Notwithstanding paragraph (b), any horserace
424permitholder licensed under this section may operate a cardroom
425 at the pari-mutuel facility on any day between the hours of 12
426noon and 12 midnight if the permitholder conducted a full
427schedule of live racing or games during the preceding year.
428     Section 6.  This act shall take effect upon becoming a law.


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