HB 1447

1
A bill to be entitled
2An act relating to video lotteries; amending s. 24.103,
3F.S.; providing definitions; amending s. 24.105, F.S.;
4providing powers and duties of the Department of the
5Lottery pertaining to video lottery games; creating s.
624.125, F.S.; providing for the adoption of rules;
7creating s. 24.126, F.S.; prohibiting certain persons from
8playing video lottery games; creating s. 24.127, F.S.;
9providing requirements for the operation of video lottery
10games; providing for fines and orders of suspension;
11providing a payout percentage; providing for the
12distribution of income; providing for weekly allocations;
13providing penalties; creating s. 24.128, F.S.; providing
14for the licensure of video lottery terminal vendors;
15providing for emergency rules; creating s. 24.129, F.S.;
16prohibiting certain local zoning ordinances; creating s.
1724.130, F.S.; providing requirements for video lottery
18terminals; creating s. 24.131, F.S.; requiring video
19lottery terminal vendors to establish training programs
20for employees who service such terminals; requiring
21departmental approval of such programs; providing
22certification requirements for such employees; providing
23for the adoption of rules; creating s. 24.132, F.S.;
24requiring video lottery retailers to execute agreements
25with certain horsemen's and breeders' associations;
26requiring the remittance of funds pursuant to such
27agreements; authorizing the department to sanction certain
28breeders; creating s. 24.133, F.S.; requiring operators of
29facilities where video lottery games are conducted to post
30certain signs regarding compulsive gambling; creating s.
3124.134, F.S.; establishing programs for compulsive
32gambling within the Department of Children and Family
33Services; creating s. 24.136, F.S.; authorizing a
34caterer's license for video lottery retailers; creating s.
3524.137, F.S.; prohibiting video lottery retailers from
36engaging in certain activities; creating s. 24.138, F.S.;
37providing for the exclusion of certain persons from a
38retailer's premises; creating s. 24.139, F.S.; requiring
39retailers to provide office space for department
40employees; amending s. 212.02, F.S.; excluding video
41lottery terminals from the definition of the term "coin-
42operated amusement machine" for purposes of the sales and
43use tax; providing an effective date.
44
45Be It Enacted by the Legislature of the State of Florida:
46
47     Section 1.  Subsections (7), (8), (9), (10), and (11) are
48added to section 24.103, Florida Statutes, to read:
49     24.103  Definitions.--As used in this act:
50     (7)  "Video lottery game" means an electronically simulated
51game involving any element of chance, skill, or both, played on
52a video lottery terminal that, upon insertion of currency,
53coins, tokens, credits, vouchers, or anything of value, is
54available to play or simulate a lottery-type game. The games
55include, but are not limited to, lineup games, traditional card
56games, poker, and progressive games where the jackpot grows and
57accumulates as it is being played in a video lottery terminal,
58or network of video lottery terminals, using a cathode ray tube,
59video display screen, microprocessors, or other similar
60technology available now or in the future, as approved by the
61department. A player may receive a payoff in the form of
62currency, coins, tokens, credits, vouchers, or anything of
63value, automatically or in some other manner.
64     (8)  "Video lottery terminal" means a machine or device,
65including associated equipment that is required to operate the
66machine or device upon which a video lottery game is played or
67operated. A video lottery terminal may use spinning reels or
68video displays or other similar technology available now or in
69the future, as approved by the department.
70     (9)  "Video lottery terminal vendor" means any person
71licensed by the department who engages in the business of
72selling, leasing, servicing, repairing, or upgrading video
73lottery terminals for video lottery retailers or who provides to
74the department or to a video lottery retailer computer
75equipment, software, or other functions related to video lottery
76terminals.
77     (10)  "Net terminal income" means currency and other
78consideration placed into a video lottery terminal, less payouts
79to or credits redeemed by players.
80     (11)  "Video lottery retailer" means a pari-mutuel
81permitholder under chapter 550 who:
82     (a)  Conducted a full schedule of live races or games, as
83described in ss. 550.002(11) and 550.475 between July 1, 2004,
84and June 30, 2005, and between July 1, 2005, and June 30,2006;
85or
86     (b)  Is authorized to receive broadcasts of horse races
87under s. 550.6308.
88     Section 2.  Subsections (21), (22), (23), (24), (25), and
89(26) are added to section 24.105, Florida Statutes, to read:
90     24.105  Powers and duties of department.--The department
91shall:
92     (21)  Have in place the capacity to support video lottery
93games at facilities of video lottery retailers by October 1,
942007.
95     (22)  Hear and decide promptly and in reasonable order all
96video-lottery-related license applications and enforcement
97proceedings for suspension or revocation of licenses.
98     (23)  Collect and disburse video lottery revenue due the
99department as described in this chapter.
100     (24)  Certify net terminal income of video lottery
101retailers by inspecting records, conducting audits, or any other
102reasonable means.
103     (25)  Maintain a list of licensed video lottery terminal
104vendors and a current list of all contracts between video
105lottery terminal vendors and video lottery retailers.
106     (26)  Approve an application for a video lottery retailer
107within 90 days after receipt of the application. Any person
108holding a pari-mutuel permit meets all qualifications of
109licensure under this section if the person has been licensed
110pursuant to chapter 550, meets the definition of a video lottery
111retailer under s. 24.103(11), and has paid the fee required in
112subsection (27).
113     Section 3.  Section 24.125, Florida Statutes, is created to
114read:
115     24.125  Rules authorized.--
116     (1)  The department may adopt rules similar to rules
117adopted under chapter 551, relating to:
118     (a)  The regulation of video lottery retailers and video
119lottery products.
120     (b)  Specifications for video lottery terminals to be
121approved and authorized as the department considers necessary in
122order to maintain the integrity of video lottery games and
123terminals. The specifications may not limit the number of video
124lottery terminal vendors who supply terminals to fewer than
125four.
126     (2)  Initial rules to permit the operation of video
127lotteries and the licensing of video lottery vendors shall be
128adopted by October 1, 2007. The department may adopt emergency
129rules under ss. 120.536(1) and 120.54(4) to implement this
130section.
131     Section 4.  Section 24.126, Florida Statutes, is created to
132read:
133     24.126  Video lottery; minimum age.--
134     (1)  A person who is younger than 21 years of age may not
135play a video lottery game.
136     (2)  Each video lottery retailer shall post a clear and
137conspicuous sign on all video lottery terminals which states:
138
139THE USE OF A VIDEO LOTTERY TERMINAL BY PERSONS UNDER THE
140AGE OF 18 IS AGAINST FLORIDA LAW. PROOF OF AGE IS REQUIRED
141FOR USE.
142
143     (3)  Any person who violates this section commits a
144misdemeanor of the second degree, punishable as provided in s.
145775.082 or s. 775.083.
146     Section 5.  Section 24.127, Florida Statutes, is created to
147read:
148     24.127  Video lottery games.--
149     (1)  Video lottery games may be offered by a video lottery
150retailer only at its pari-mutuel facility at any time. During
151any calendar year in which a video lottery retailer maintains
152video lottery terminals, the retailer must have conducted in the
153prior year and must be currently licensed to conduct a full
154schedule of live racing or games, as defined in s. 550.002(11),
155including the conduct of races or games under s. 550.475, or be
156authorized to receive broadcasts of horse races under s.
157550.6308. The department shall waive such requirements upon a
158showing that the failure to conduct races or games resulted from
159a natural disaster, strike, or other acts beyond the control of
160the permitholder, including legal restrictions or prohibitions
161placed on the permitholder's activities. If the retailer for any
162other reason does not comply with the requirement to conduct a
163full schedule of races or games, the department shall order the
164retailer to suspend its video lottery operation. The department
165may assess an administrative fine, not to exceed $5,000 per
166video lottery terminal per day, against any retailer who does
167not suspend its video lottery operation when ordered to do so by
168the department. The department may enforce a suspension order or
169administrative fine as provided in s. 120.69. Each video lottery
170retailer shall post a bond payable to the state in an amount
171determined by the department which is sufficient to guarantee
172the payment of revenue due in any payment period. The initial
173bond prior to commencement of operations by the video lottery
174retailer shall be $2 million, issued by a surety approved by the
175department, conditioned to make the payments to the department.
176The bond shall be separate from the bond required by s. 550.125.
177     (2)  Each video lottery terminal retailer shall determine
178the following pertaining to the video lottery terminals located
179on its premises:
180     (a)  Number of video lottery terminals, not to exceed
1811,500;
182     (b)  Dates and hours during which the video lottery
183terminals are available for play, not to exceed 16 hours a day,
184except if the board of county commissioners of the county where
185the retailer is located authorizes additional hours for play;
186     (c)  Mix of games available for play on video lottery
187terminals;
188     (d)  Use of currency, coins, tokens, vouchers, electronic
189credits, or anything of value;
190     (e)  Location and movement of video lottery terminals on
191the premises;
192     (f)  Staffing of video lottery terminal operations on the
193premises; and
194     (g)  Minimum and maximum betting amounts and the payout,
195based upon a suitable range, as determined by the video lottery
196retailer, with a minimum of 85 percent of the amount of
197currency, credits, vouchers, or anything of value put into a
198video lottery terminal.
199     (3)  Each video lottery terminal retailer shall notify the
200department before commencing the initial operation of the video
201lottery games.
202     (4)  To facilitate the auditing and security programs that
203are critical to the integrity of the video lottery system, the
204department has overall control of the entire system. Each video
205lottery terminal shall be linked, directly or indirectly, to a
206computer system approved by the department.
207     (5)  Video lottery games may be played at an authorized
208video lottery retailer's facility regardless of whether the
209retailer is conducting a pari-mutuel event.
210     (6)  Income derived from video lottery operations is not
211subject to s. 24.121. The allocation of net terminal income
212derived from video lottery games shall be as follows:
213     (a)  Fifty percent shall be remitted to the Video Lottery
214Administration Trust Fund for transfer to the Education
215Enhancement Trust Fund.
216     (b)  Fifty-hundredths percent shall be paid by the video
217lottery retailer to the department to administer and regulate
218the operation of video lottery terminals.
219     (7)  The allocation provided in subsection (6) shall be
220made weekly. Amounts allocated pursuant to paragraphs (6)(a) and
221(b) shall be remitted to the department by electronic transfer
222within 24 hours after the allocation is determined.
223     (8)  Any person who intentionally manipulates or attempts
224to manipulate the outcome, payoff, or operation of a video
225lottery terminal by physical or electronic tampering or other
226means commits a felony of the third degree, punishable as
227provided in s. 775.082, s. 775.083, or s. 775.084.
228     (9)  Notwithstanding s. 24.115, each video lottery retailer
229is responsible for payment of video lottery prizes.
230     (10)  In the area or room in a facility in which a video
231lottery terminal is placed, the video lottery retailer shall
232also place video monitors displaying live races or games being
233conducted in that facility. If live races or games are not being
234conducted at the facility, any simulcast races or games that are
235displayed otherwise in the facility shall be displayed. In each
236area or room, the retailer shall also provide a means by which
237patrons may wager on pari-mutuel activity.
238     Section 6.  Section 24.128, Florida Statutes, is created to
239read:
240     24.128  Licensure of video lottery terminal vendors.--Video
241lottery terminal vendors shall be licensed by the department by
242July 1, 2007. The department may adopt emergency rules under ss.
243120.536(1) and 120.54(4) to implement this section. The
244department may not license a person as a video lottery terminal
245vendor who has an interest in a video lottery retailer or a
246business relationship with a video lottery retailer other than
247as a vendor or lessor of video lottery terminals.
248     Section 7.  Section 24.129, Florida Statutes, is created to
249read:
250     24.129  Local zoning of pari-mutuel facilities.--The
251installation, operation, or use of a video lottery on any
252property where pari-mutuel operations were or would have been
253lawful under any county or municipal zoning ordinance on July 1,
2542006, does not change the character of the use of such property.
255Such use is lawful and consistent with pari-mutuel operations,
256and such use or the expansion or construction of facilities to
257accommodate video lottery terminals on the property is not
258subject to review or approval under land use, zoning, or site
259plan review, or concurrency law, ordinance, or regulation by any
260governmental entity.
261     Section 8.  Section 24.130, Florida Statutes, is created to
262read:
263     24.130  Video lottery terminals.--
264     (1)  Video lottery terminals may not be offered for use or
265play in this state unless approved by the department.
266     (2)  Each video lottery terminal approved for use in this
267state shall:
268     (a)  Be protected against manipulation to affect the random
269probabilities of winning plays.
270     (b)  Have one or more mechanisms that accept currency,
271coins, tokens, vouchers, or anything of value in exchange for
272game credits. Such mechanisms must be designed to prevent
273players from obtaining currency, coins, tokens, vouchers, or
274anything of value, or from obtaining game credits, by physical
275tampering.
276     (c)  Be capable of suspending play until reset at the
277direction of the department as a result of physical tampering.
278     (d)  Be capable of being linked to a central computer
279communications system to audit the operation, financial data,
280and program information, as required by the department.
281     Section 9.  Section 24.131, Florida Statutes, is created to
282read:
283     24.131  Video lottery terminal training program.--
284     (1)  Each licensed video lottery terminal vendor shall
285submit a training program for the service and maintenance of
286terminals and equipment for approval by the department. The
287training program must include an outline of the training
288curriculum; a list of instructors and their qualifications; a
289copy of the instructional materials; and the dates, times, and
290location of training classes. A service and maintenance program
291may not be held unless approved by the department.
292     (2)  Each video lottery terminal service employee must
293complete the requirements of the manufacturer's training program
294before performing service, maintenance, or repairs on video
295lottery terminals or associated equipment. Upon the successful
296completion of the training program by an employee, the
297department shall issue a certificate authorizing the employee to
298service, maintain, and repair video lottery terminals and
299associated equipment. A certificate of completion may not be
300issued to a person until the department determines that such
301person has completed the required training. Before being
302certified as a video lottery terminal service employee, a person
303must pass a background investigation conducted by the
304department. The department may revoke certification upon finding
305that a person is in violation of this chapter or a department
306rule.
307     (3)  The department may adopt rules regarding the training,
308qualifications, and certification of video lottery terminal
309service employees.
310     Section 10.  Section 24.132, Florida Statutes, is created
311to read:
312     24.132  Video lottery retailer; agreements required.--
313     (1)  A video lottery retailer who holds a permit under
314chapter 550 to conduct pari-mutuel wagering meets of
315thoroughbred racing may not conduct video lottery games unless
316the retailer has on file with the division a binding written
317agreement between such retailer and the Florida Horsemen's
318Benevolent and Protective Association, Inc., governing the
319payment of purses on live thoroughbred races conducted at the
320retailer's pari-mutuel facility. In addition, a video lottery
321retailer may not conduct video lottery games unless it has on
322file with the department a binding written agreement between it
323and the Florida Thoroughbred Breeders' Association, Inc.,
324governing the payment of breeders', stallion, and special racing
325awards on live thoroughbred races conducted at the retailer's
326pari-mutuel facility.
327     (a)  The agreement governing purses and the agreement
328governing awards may direct the payment of such purses and
329awards from revenues generated by any wagering or gaming the
330applicant is authorized to conduct.
331     (b)  All purses and awards are subject to chapter 550. All
332sums for breeders', stallion, and special racing awards shall be
333remitted monthly to the Florida Thoroughbred Breeders'
334Association, Inc., for the payment of awards subject to the
335administrative fee authorized in s. 550.2625(3).
336     (2)  The department shall prohibit the operation of video
337lottery games at a retailer's premises if any agreement required
338under subsection (1) is terminated or otherwise ceases to
339operate or if the department determines that the retailer has
340materially failed to comply with the terms of an agreement.
341     Section 11.  Section 24.133, Florida Statutes, is created
342to read:
343     24.133  Notice of availability of assistance for compulsive
344gambling required.--
345     (1)  The owner of each facility at which video lottery
346games are conducted shall post signs that display the following
347statement:
348
349"IF YOU OR SOMEONE YOU KNOW HAS A GAMBLING PROBLEM, HELP
350IS AVAILABLE, CALL 1-800-426-7711."
351
352     (2)  The department may approve additional toll-free
353numbers to ensure compliance with this section. The signs must
354be posted within 50 feet of each entrance.
355     Section 12.  Section 24.134, Florida Statutes, is created
356to read:
357     24.134  Compulsive gambling program.--The Mental Health
358Program Office within the Department of Children and Family
359Services shall establish a program for public education,
360awareness, and training regarding problem and compulsive
361gambling and the treatment and prevention of problem and
362compulsive gambling. The program shall include:
363     (1)  Maintenance of a toll-free telephone number that is
364operated by an advocacy organization for the treatment of
365compulsive gambling in order to provide crisis counseling and
366referral services to families that are experiencing difficulty
367as a result of problem or compulsive gambling.
368     (2)  The promotion of public-awareness campaigns regarding
369the recognition and prevention of problem or compulsive
370gambling.
371     (3)  Facilitation, through inservice training and other
372means, of effective assistance programs for problem and
373compulsive gamblers and family members who are affected by
374problem and compulsive gambling.
375     (4)  Studies to identify adults and juveniles in this state
376who are, or are at risk of becoming, problem or compulsive
377gamblers.
378     Section 13.  Section 24.136, Florida Statutes, is created
379to read:
380     24.136  Licensure of video lottery retailer.--A video
381lottery retailer is entitled to a caterer's license pursuant to
382s. 565.02 on days in which the pari-mutuel facility is open to
383the public for video lottery play as authorized by this chapter.
384     Section 14.  Section 24.137, Florida Statutes, is created
385to read:
386     24.137  Other prohibited activities.--
387     (1)  Complimentary or reduced-cost alcoholic beverages may
388not be served to a person playing a video lottery terminal.
389Alcoholic beverages served to a person playing a video lottery
390terminal shall cost at least the same amount as alcoholic
391beverages served to the general public at a bar within the
392facility.
393     (2)  A video lottery retailer may not allow any automated
394teller machine or similar device designated to provide credit or
395dispense cash in the designated area where video lottery
396terminal gaming may be conducted pursuant to this chapter nor
397may such retailer make loans, provide credit, or advance cash to
398enable a person to play a video lottery terminal. However,
399automated ticket redemption machines that dispense cash
400resulting from the redemption of tickets may be located in such
401areas.
402     (3)  A video lottery retailer may not accept or cash any
403personal, third-party, corporate, business, or government-issued
404check from any person.
405     (4)  A video lottery terminal located within a video
406lottery retailer's facility shall accept only tickets or paper
407currency or an electronic payment system for wagering, and
408return or deliver payouts to the player in the form of tickets
409that may be exchanged for cash, merchandise, or other items of
410value. The use of coins, credit or debit cards, tokens, or
411similar objects is prohibited. However, an electronic credit
412system may be used for receiving wagers and making payouts.
413     Section 15.  Section 24.138, Florida Statutes, is created
414to read:
415     24.138  Exclusions of certain persons.--In addition to the
416power to exclude certain persons from any facility of a video
417lottery terminal retailer in this state, the department may
418exclude any person from any facility of a video lottery terminal
419retailer for conduct that would constitute, if the person were a
420licensee, a violation of this chapter, chapter 550 or chapter
421551, or a department rule. The department may exclude from any
422facility of a video lottery terminal retailer any person who has
423been ejected from a facility of a video lottery retailer or slot
424machine licensee in this or any other state by the governmental
425department, agency, commission or authority that regulates
426gaming in that state. This section does not abrogate the common
427law right of a video lottery terminal retailer to exclude a
428patron absolutely in this state.
429     Section 16.  Section 24.139, Florida Statutes, is created
430to read:
431     24.139  Department office space.--A video lottery terminal
432retailer shall provide adequate office space at no cost to the
433department for the oversight of video lottery terminal
434operations. The department shall adopt rules establishing the
435criteria for adequate space, configuration, and needed
436electronic and technological requirements for office space
437required by this section.
438     Section 17.  Subsection (24) of section 212.02, Florida
439Statues, is amended to read:
440     212.02  Definitions.--The following terms and phrases when
441used in this chapter have the meanings ascribed to them in this
442section, except where the context clearly indicates a different
443meaning:
444     (24)  "Coin-operated amusement machine" means any machine
445operated by coin, slug, token, coupon, or similar device for the
446purposes of entertainment or amusement. The term includes, but
447is not limited to, coin-operated pinball machines, music
448machines, juke boxes, mechanical games, video games, arcade
449games, billiard tables, moving picture viewers, shooting
450galleries, and all other similar amusement devices. However, the
451term does not include a video lottery terminal operated pursuant
452to chapter 24.
453     Section 18.  This act shall take effect upon becoming a
454law.


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