CS/HB 1551

1
A bill to be entitled
2An act relating to the Department of the Lottery and pari-
3mutuel facilities; amending s. 24.103, F.S.; providing
4definitions; amending s. 24.105, F.S.; authorizing the
5department to hold patents; requiring that the department
6notify the Department of State when the Department of the
7Lottery secures property rights by patent, copyright, or
8trademark; providing powers and duties of the Department
9of the Lottery pertaining to video lottery games; creating
10s. 24.125, F.S.; providing for the adoption of rules;
11creating s. 24.126, F.S.; prohibiting certain persons from
12playing video lottery games; requiring video lottery
13retailers to post certain signage; providing penalties;
14creating s. 24.127, F.S.; providing requirements for the
15operation of video lottery games; providing for fines and
16orders of suspension; requiring the video lottery retailer
17to post bond; providing a payout percentage; providing for
18licensure and a license fee; providing for the
19distribution of net terminal income; providing for weekly
20allocations; providing penalties; creating s. 24.128,
21F.S.; providing for the licensure of video lottery
22terminal vendors; providing for emergency rules; creating
23s. 24.129, F.S.; providing that use or expansion of
24property for video lottery terminals is not subject to
25review or approval under land use, zoning, or site plan
26review or concurrency law, ordinance, or regulation;
27creating s. 24.130, F.S.; providing requirements for video
28lottery terminals; creating s. 24.131, F.S.; requiring
29video lottery terminal vendors to establish training
30programs for employees who service such terminals;
31requiring department approval of such programs; providing
32certification requirements; providing for the adoption of
33rules; creating s. 24.132, F.S.; requiring certain video
34lottery retailers to execute certain agreements governing
35the payment of purses and special thoroughbred racing
36awards; requiring the remittance of funds pursuant to such
37agreements; authorizing the department to sanction certain
38breeders; prohibiting the operation of video lottery games
39in the absence of agreements; requiring arbitration if
40agreements are not in place; requiring certain video
41lottery retailers to make certain payments for the
42promotion of the thoroughbred racing industry; creating s.
4324.133, F.S.; requiring operators of facilities where
44video lottery games are conducted to post certain signs
45regarding compulsive gambling; creating s. 24.134, F.S.;
46providing for compulsive gambling programs; creating s.
4724.136, F.S.; authorizing a caterer's license for video
48lottery retailers; creating s. 24.137, F.S.; prohibiting
49video lottery retailers from engaging in certain
50activities; creating s. 24.138, F.S.; providing for the
51exclusion of certain persons from a video lottery
52retailer's premises; creating s. 24.139, F.S.; requiring
53video lottery retailers to provide office space for
54department employees; amending s. 212.02, F.S.; excluding
55video lottery terminals from the definition of the term
56"coin-operated amusement machine" for purposes of the
57sales and use tax; amending s. 1011.62, F.S.; decreasing
58the required local effort for school districts by certain
59estimated revenues from video lottery terminals; amending
60s. 550.09515, F.S.; providing for reissuance of a pari-
61mutuel permit that has been revoked by the Division of
62Pari-mutuel Wagering of the Department of Business and
63Professional Regulation or has escheated to the state;
64providing an appropriation and authorizing additional
65positions; providing an effective date.
66
67     WHEREAS, the pari-mutuel industry has been a valuable part
68of the Florida economy and a source of tax revenue for over 50
69years, and
70     WHEREAS, the onset of tribal gaming has had a
71disproportionate negative impact on revenues and taxes on the
72pari-mutuel facilities located within their primary market area,
73and
74     WHEREAS, the tribal casinos do not pay any tax to the state
75in connection with their gaming operations, and the loss of
76revenues to existing pari-mutuel facilities causes the state to
77lose tax revenues, and
78     WHEREAS, the state, in order to maintain the revenues in
79those areas directly affected, would allow those pari-mutuel
80facilities to become "video lottery retailers" subject to the
81requirements of this act, including the tax imposed on
82operations which would benefit the state and its education
83system, and
84     WHEREAS, the limited authorization of "video lottery
85retailers" at existing pari-mutuel facilities would ensure that
86the state would continue to recover taxes associated with pari-
87mutuel facilities that the state has enjoyed for over 50 years,
88NOW, THEREFORE,
89
90Be It Enacted by the Legislature of the State of Florida:
91
92     Section 1.  Subsections (7) through (11) are added to
93section 24.103, Florida Statutes, to read:
94     24.103  Definitions.--As used in this act:
95     (7)  "Video lottery game" means an electronically simulated
96game involving chance, played on a video lottery terminal that,
97upon insertion of currency, coins, tokens, credits, vouchers, or
98anything of value, is available to play or simulate a bingo
99game. The game includes progressive games where the jackpot
100grows and accumulates as it is being played in a network of
101video lottery terminals within a single pari-mutuel facility,
102using a cathode ray tube, video display screen, microprocessors,
103or other similar technology available now or in the future, as
104approved by the department. A player may receive a payoff in the
105form of currency, coins, tokens, credits, vouchers, or anything
106of value, automatically or in some other manner.
107     (8)  "Video lottery terminal" means a mechanical,
108electronic, computerized gaming device that is a technological
109aid to the playing of the game of bingo and that offers wagering
110on the game of bingo as defined in s. 849.0931 and is capable of
111being linked to a centralized computer management system for
112regulating, managing, and auditing the operation, financial
113data, and program information, as required by the department. A
114video lottery terminal may be activated by insertion of a coin,
115bill, ticket, token, or similar object or upon payment of any
116consideration whatsoever, including the use of any electronic
117payment system except a credit card or debit card, and may
118entitle the person playing or operating the terminal to receive
119or may deliver to the person cash, billets, tickets, tokens, or
120electronic credits to be exchanged for cash. It is the intent of
121the Legislature to authorize only those mechanical, electronic,
122computerized, or other technological aids that a federal agency
123or a court in a final, nonappealable order has concluded
124expressly meet the definition of a mechanical, electronic,
125computerized, or other technological aid to Class II gaming
126pursuant to 25 U.S.C. s. 2703, the Indian Gaming Regulatory Act.
127The Legislature does not intend to authorize any other gaming
128device. For purposes of this subsection:
129     (a)  "Electronic or electromechanical facsimile" means a
130game played in an electronic or electromechanical format that
131replicates a game of chance by incorporating all of the
132characteristics of the game, except when, for bingo, the
133electronic or electromechanical format broadens participation by
134allowing multiple players to play with or against each other
135rather than with or against a machine.
136     (b)  "Mechanical, electronic, computerized, or other
137technological aid" means any machine or device that assists a
138player or the playing of a bingo game as defined in s. 849.0931
139and broadens participation by allowing multiple players at one
140video lottery facility to play with or against each other in a
141bingo game for a common prize or prizes. Such aid may use
142alternative displays, including, but not limited to, a
143simulation of spinning reels, to illustrate aspects of the game
144of bingo such as when a player joins the game or when prizes
145have been awarded, as long as such aid continuously and
146prominently displays the electronic bingo card so that it is
147apparent that the player is actually engaged in the play of
148bingo. Such aid shall not:
149     1.  Determine or change the outcome of any game of bingo;
150     2.  Be an electronic or electromechanical facsimile that
151replicates a game of bingo; or
152     3.  Allow players to play with or against the machine or
153house for a prize.
154
155A video lottery terminal is not a coin-operated amusement
156machine as defined in s. 212.02(24) and does not include an
157amusement game or machine as described in s. 849.161.
158     (9)  "Video lottery terminal vendor" means any person
159licensed by the department who is in the business of selling,
160leasing, servicing, repairing, or upgrading video lottery
161terminals for video lottery retailers or who provides to the
162department or to a video lottery retailer computer equipment,
163software, or other functions related to video lottery terminals.
164     (10)  "Net terminal income" means currency and other
165consideration placed into a video lottery terminal, less payouts
166to or credits redeemed by players.
167     (11)  "Video lottery retailer" means a pari-mutuel
168permitholder under chapter 550 who holds a license to conduct a
169full schedule of live racing or games, as described in s.
170550.002(11), whose facility is located within 40 miles of an
171operating tribal casino that was in existence on or before
172January 1, 2007, or whose facility is located within a county
173with a population exceeding 800,000 according to the November 1,
1742006, estimate of the Bureau of Economic and Business Research
175of the University of Florida.
176     Section 2.  Subsection (10) of section 24.105, Florida
177Statutes, is amended, and subsections (21) through (27) are
178added to that section, to read:
179     24.105  Powers and duties of department.--The department
180shall:
181     (10)  Notwithstanding the provisions of chapter 286, have
182the authority to hold patents, copyrights, trademarks, and
183service marks and enforce its rights with respect thereto. The
184department shall notify the Department of State in writing
185whenever property rights by patent, copyright, or trademark are
186secured by the department.
187     (21)  Have the capacity to support video lottery games at
188facilities of video lottery retailers by January 1, 2008.
189     (22)  Hear and decide promptly and in reasonable order all
190video-lottery-related license applications and enforcement
191proceedings for suspension or revocation of licenses.
192     (23)  Collect and disburse video lottery revenue due the
193department as described in this chapter.
194     (24)  Certify net terminal income of video lottery
195retailers by inspecting records or conducting audits or by any
196other reasonable means.
197     (25)  Maintain a list of licensed video lottery terminal
198vendors and a current list of all contracts between video
199lottery terminal vendors and video lottery retailers.
200     (26)  Approve an application for a video lottery retailer
201within 90 days after receipt of the application. A person meets
202all qualifications of licensure under this section if the person
203has been licensed under chapter 550 and meets the definition of
204a video lottery retailer under s. 24.103(11).
205     (27)  Adopt procedures by rule for scientifically testing
206and technically evaluating video lottery terminals for
207compliance with this chapter. The department may contract with
208an independent testing laboratory to scientifically test and
209technically evaluate video lottery games, video lottery
210terminals, and video lottery operating systems for compliance
211with this chapter. The independent testing laboratory must have
212a national reputation as demonstrably competent and qualified to
213scientifically test and evaluate all components of a video
214lottery gaming system and to otherwise perform all functions
215assigned to it under this chapter. The laboratory may not be
216owned or controlled by a video lottery terminal vendor or video
217lottery retailer. The selection of an independent testing
218laboratory shall be made from a list of one or more laboratories
219approved and licensed by the department.
220     Section 3.  Section 24.125, Florida Statutes, is created to
221read:
222     24.125  Rules authorized.--
223     (1)  The department may adopt rules similar to rules
224adopted under chapter 551 relating to:
225     (a)  The regulation of video lottery retailers, video
226lottery terminal vendors, video lottery games, and video lottery
227products.
228     (b)  Specifications for approving and authorizing video
229lottery terminals in order to maintain the integrity of video
230lottery games and terminals. The specifications may not limit
231the number of video lottery terminal vendors who supply
232terminals to fewer than four.
233     (c)  Hearing and approving or disapproving video-lottery-
234related license applications, and enforcement procedures related
235to suspension and revocation of licenses.
236     (d)  The collection and disbursement of video lottery
237revenue.
238     (e)  The certification of net terminal income of video
239lottery retailers.
240     (2)  Initial rules to permit the operation of video
241lotteries and the licensing of video lottery vendors shall be
242adopted by January 1, 2008. The department may adopt emergency
243rules under ss. 120.536(1) and 120.54(4) to implement this
244section.
245     Section 4.  Section 24.126, Florida Statutes, is created to
246read:
247     24.126  Video lottery; minimum age.--
248     (1)  A person who has not attained 21 years of age may not
249play a video lottery game.
250     (2)  Each video lottery retailer shall post a clear and
251conspicuous sign on all video lottery terminals which states:
252
253THE USE OF A VIDEO LOTTERY TERMINAL BY PERSONS UNDER THE AGE OF
25421 IS AGAINST FLORIDA LAW. PROOF OF AGE IS REQUIRED FOR USE.
255
256     (3)  Any person who violates this section commits a
257misdemeanor of the second degree, punishable as provided in s.
258775.082 or s. 775.083.
259     Section 5.  Section 24.127, Florida Statutes, is created to
260read:
261     24.127  Video lottery games.--
262     (1)  Video lottery games may be offered by a video lottery
263retailer only at the pari-mutuel facility at which the video
264lottery retailer is licensed to conduct pari-mutuel wagering, or
265at its relocated licensed pari-mutuel facility if the relocation
266of such facility has been approved by the Division of Pari-
267mutuel Wagering pursuant to s. 550.0555. During any calendar
268year in which a video lottery retailer maintains video lottery
269terminals, the retailer must be licensed to conduct a full
270schedule of live racing or games, as defined in s. 550.002(11),
271including the conduct of racing or games under s. 550.475, or be
272authorized to receive broadcasts of horseraces under s.
273550.6308. The department shall waive such requirements upon a
274showing that the failure to conduct racing or games resulted
275from a natural disaster, strike, or other act beyond the control
276of the permitholder, including legal restrictions or
277prohibitions placed on the permitholder's activities. If the
278retailer does not comply with the requirement to conduct a full
279schedule of racing or games for any other reason, the department
280shall order the retailer to suspend its video lottery operation.
281The department may assess an administrative fine, not to exceed
282$5,000 per video lottery terminal per day, against any retailer
283who does not suspend its video lottery operation when ordered to
284do so by the department. The department may enforce a suspension
285order or administrative fine as provided in s. 120.69. Each
286video lottery retailer shall post a bond payable to the state in
287an amount determined by the department as sufficient to
288guarantee the payment of revenue due in any payment period. The
289initial bond prior to commencement of operations by the video
290lottery retailer shall be $2 million, issued by a surety
291approved by the department, conditioned to make the payments to
292the department. The bond shall be separate from the bond
293required by s. 550.125.
294     (2)  Each video lottery retailer shall determine the
295following pertaining to the video lottery terminals located on
296its premises:
297     (a)  Number of video lottery terminals, not to exceed 1,000
298at any pari-mutuel facility; however, any pari-mutuel facility
299that also holds a slot machine license is limited to a
300combination of video lottery terminals and slot machines equal
301to the maximum number of slot machines authorized for such
302facility.
303     (b)  Dates and hours during which the video lottery
304terminals are available for play, not to exceed 16 hours a day,
305except that the hours of operation may be extended by majority
306vote of the governing body of the municipality where the
307retailer is located or the governing body of the county if the
308retailer is not located in a municipality.
309     (c)  Mix of games available for play on video lottery
310terminals.
311     (d)  Use of currency, coins, tokens, vouchers, electronic
312credits, or anything of value.
313     (e)  Location and movement of video lottery terminals on
314the premises.
315     (f)  Staffing of video lottery terminal operations on the
316premises.
317     (g)  Minimum and maximum betting amounts and the payout,
318based upon a suitable range, as determined by the video lottery
319retailer, with a minimum of 85 percent of the amount of
320currency, credits, vouchers, or anything of value put into a
321video lottery terminal.
322     (3)  Each video lottery retailer shall notify the
323department before commencing the initial operation of video
324lottery games.
325     (4)  To facilitate the auditing and security programs that
326are critical to the integrity of the video lottery system, the
327department shall have overall control of the entire system. Each
328video lottery terminal shall be linked, directly or indirectly,
329to a computer system operated by the department or by a vendor
330contracting with the department.
331     (5)  Video lottery games may be played at an authorized
332video lottery retailer's facility regardless of whether the
333retailer is conducting a pari-mutuel event.
334     (6)  Upon submission of the initial application for a video
335lottery retailer license and annually thereafter on the
336anniversary date of the issuance of the initial license, the
337licensee must pay a nonrefundable license fee of $3 million to
338the department. The license fee shall be deposited into the
339Operating Trust Fund of the Department of the Lottery to be used
340by the department to administer this act.
341     (7)  Income derived from video lottery operations is not
342subject to s. 24.121. The allocation of net terminal income
343derived from video lottery games shall be as follows:
344     (a)  An amount equal to 50 percent of net terminal income
345shall be remitted to the Operating Trust Fund for transfer to
346the Educational Enhancement Trust Fund.
347     (b)  An amount equal to 0.50 percent of net terminal income
348shall be paid by the video lottery retailer to the department to
349administer and regulate the operation of video lottery
350terminals. Funds in excess of the department's administrative
351costs shall be transferred to the Educational Enhancement Trust
352Fund.
353     (c)  An amount equal to 0.925 percent of net terminal
354income shall be remitted to the county where the facility is
355located.
356     (d)  An amount equal to 0.925 percent of net terminal
357income shall be remitted to the municipality, if the facility is
358located in a municipality.
359
360Notwithstanding any local agreements to the contrary, pari-
361mutuel facilities authorized to have slot machines pursuant to
362s. 23, Art. X of the State Constitution shall be required to pay
363no more than the percentages specified in paragraphs (c) and
364(d). If necessary to comply with any covenant established
365pursuant to s. 1013.68(4), s. 1013.70(1), or s. 1013.737(3),
366funds transferred to the Educational Enhancement Trust Fund
367under paragraph (b) shall first be available to pay debt service
368on lottery bonds issued to fund school construction in the event
369lottery revenues are insufficient for such purpose or to satisfy
370debt service reserve requirements established in connection with
371lottery bonds. Such funds are subject to annual appropriation by
372the Legislature.
373     (8)  The allocation provided in subsection (7) shall be
374made weekly. Amounts allocated shall be remitted to the
375department by electronic transfer within 24 hours after the
376allocation is determined.
377     (9)  Any person who intentionally manipulates or attempts
378to manipulate the outcome, payoff, or operation of a video
379lottery terminal by physical or electronic tampering or other
380means commits a felony of the third degree, punishable as
381provided in s. 775.082, s. 775.083, or s. 775.084.
382     (10)  Notwithstanding s. 24.115, each video lottery
383retailer is responsible for payment of video lottery prizes.
384     (11)  In the area or room in a facility in which a video
385lottery terminal is placed, the video lottery retailer shall
386also place video monitors displaying live races or games being
387conducted in that facility. If live races or games are not being
388conducted, any simulcast races or games that are otherwise
389displayed in the facility shall be displayed. In each area or
390room, the retailer shall also provide a means for patrons to
391wager on pari-mutuel activity.
392     Section 6.  Section 24.128, Florida Statutes, is created to
393read:
394     24.128  Licensure of video lottery terminal vendors.--Video
395lottery terminal vendors shall be licensed by the department by
396October 1, 2007. The department may adopt emergency rules under
397ss. 120.536(1) and 120.54(4) to implement this section. The
398department may not license a person as a video lottery terminal
399vendor who has an interest in a video lottery retailer or a
400business relationship with a video lottery retailer other than
401as a vendor or lessor of video lottery terminals.
402     Section 7.  Section 24.129, Florida Statutes, is created to
403read:
404     24.129  Local zoning of pari-mutuel facilities.--The
405installation, operation, or use of a video lottery terminal on
406any property where pari-mutuel operations were or would have
407been lawful under any county or municipal zoning ordinance on
408July 1, 2006, does not change the character of the use of such
409property. Such use is lawful and consistent with pari-mutuel
410operations, and such use or the expansion or construction of
411facilities to accommodate video lottery terminals on the
412property is not subject to review or approval under land use,
413zoning, or site plan review or concurrency law, ordinance, or
414regulation by any governmental entity.
415     Section 8.  Section 24.130, Florida Statutes, is created to
416read:
417     24.130  Video lottery terminals.--
418     (1)  Video lottery terminals may not be offered for use or
419play in this state unless approved by the department.
420     (2)  Each video lottery terminal approved for use in this
421state must:
422     (a)  Be protected against manipulation to affect the random
423probabilities of winning plays.
424     (b)  Have one or more mechanisms that accept currency,
425coins, tokens, vouchers, or anything of value in exchange for
426game credits. Such mechanisms must be designed to prevent
427players from obtaining currency, coins, tokens, vouchers, or
428anything of value, or from obtaining game credits, by physical
429tampering.
430     (c)  Be capable of suspending play until reset at the
431direction of the department as a result of physical tampering.
432     (d)  Be capable of being linked to a central computer
433communications system to audit the operation, financial data,
434and program information, as required by the department.
435     Section 9.  Section 24.131, Florida Statutes, is created to
436read:
437     24.131  Video lottery terminal training program.--
438     (1)  Each licensed video lottery terminal vendor shall
439submit a training program for the service and maintenance of
440terminals and equipment for approval by the department. The
441training program must include an outline of the training
442curriculum; a list of instructors and their qualifications; a
443copy of the instructional materials; and the dates, times, and
444location of training classes. A service and maintenance program
445may not be held unless approved by the department.
446     (2)  Each video lottery terminal service employee must
447complete the requirements of the manufacturer's training program
448before performing service, maintenance, or repairs on video
449lottery terminals or associated equipment. Upon the successful
450completion of the training program by an employee, the
451department shall issue a certificate authorizing the employee to
452service, maintain, and repair video lottery terminals and
453associated equipment. A certificate of completion may not be
454issued to a person until the department determines that such
455person has completed the required training. Before being
456certified as a video lottery terminal service employee, a person
457must pass a background investigation conducted by the
458department. The department may revoke certification upon finding
459that a person is in violation of this chapter or department
460rule.
461     (3)  The department may adopt rules regarding the training,
462qualifications, and certification of video lottery terminal
463service employees.
464     Section 10.  Section 24.132, Florida Statutes, is created
465to read:
466     24.132  Video lottery retailer; agreements required.--
467     (1)  A video lottery retailer who holds a permit under
468chapter 550 to conduct pari-mutuel wagering meets of
469thoroughbred racing may not conduct video lottery games unless
470the retailer has on file with the division a binding written
471agreement governing the payment of purses on live thoroughbred
472races conducted at the retailer's pari-mutuel facility between
473the retailer and the association representing a majority of the
474thoroughbred racehorse owners and trainers at that location. In
475addition, a video lottery retailer may not conduct video lottery
476games unless it has on file with the department a binding
477written agreement between it and the Florida Thoroughbred
478Breeders' Association, Inc., governing the payment of breeders',
479stallion, and special racing awards on live thoroughbred races
480conducted at the retailer's pari-mutuel facility.
481     (a)  The agreement governing purses and the agreement
482governing awards may direct the payment of such purses and
483awards from revenues generated by any wagering or gaming that
484the applicant is authorized to conduct.
485     (b)  All purses and awards are subject to chapter 550. All
486sums for breeders', stallion, and special racing awards shall be
487remitted monthly to the Florida Thoroughbred Breeders'
488Association, Inc., for the payment of awards subject to the
489administrative fee authorized in s. 550.2625(3).
490     (2)  The department shall prohibit the operation of video
491lottery games at a retailer's premises if an agreement required
492under subsection (1) is terminated or otherwise ceases to
493operate or if the department determines that the retailer has
494materially failed to comply with the terms of an agreement.
495     (3)  If an agreement required under subsection (1) is not
496in place, either party may request the American Arbitration
497Association to furnish a list of 11 arbitrators, each of whom
498shall have at least 5 years of commercial arbitration experience
499and no financial interest in or prior relationship with any of
500the parties or their affiliated or related entities or
501principals. Each party to the agreement shall select a single
502arbitrator from the list provided within 10 days after receipt
503of the list, and the arbitrators selected shall choose one
504additional arbitrator from the same list within the next 10
505days.
506     (a)  If an agreement is not in place 60 days after the
507request for a list of arbitrators, the matter shall be
508immediately submitted for mandatory binding arbitration to
509resolve the disagreement between the parties. The three
510arbitrators selected shall constitute the panel that will
511arbitrate the dispute between the parties pursuant to the
512American Arbitration Association Commercial Arbitration Rules
513and chapter 682.
514     (b)  At the conclusion of the proceedings, which must be
515within 90 days after requesting the list of arbitrators, the
516arbitration panel shall present a proposed agreement to the
517parties which the majority of the panel believes equitably
518balances the rights, interests, obligations, and reasonable
519expectations of the parties. The parties shall immediately enter
520into such agreement, which shall satisfy the requirements of
521subsection (1) and permit the conduct of video lottery games by
522the video lottery retailer. The agreement is effective until the
523last day of the license or renewal period or until the parties
524enter into a different agreement. Each party shall pay its
525respective costs of arbitration and one-half of the costs of the
526arbitration panel unless the parties have agreed otherwise. If
527the agreement remains in place 120 days before the scheduled
528issuance of the next annual license renewal, the arbitration
529process established in this subsection shall begin again.
530     (c)  If neither of the agreements required under subsection
531(1) is in place, arbitration shall proceed independently with
532separate lists of arbitrators, arbitration panels, arbitration
533proceedings, and resulting agreements.
534     (d)  Arbitration and the resulting agreement governing the
535payment of purses under subsection (1) shall be limited to the
536payment of purses from net terminal income only.
537     (4)  A video lottery retailer who holds a limited
538intertrack waging license pursuant to s. 550.6308 shall make the
539following payments for the promotion and welfare of the
540thoroughbred racing industry:
541     (a)  An amount equal to 12.5 percent of the net terminal
542income shall be paid to thoroughbred pari-mutuel permitholders
543that are licensed to conduct live races for purses. If more than
544one permitholder is licensed to conduct live races during the
545state thoroughbred racing season, the video lottery retailer
546shall allocate these funds between the operating permitholders
547on a pro rata basis based on the total live handle generated
548during the previous racing season at the operating
549permitholders' facilities. An amount equal to 7.5 percent of the
550purse account generated under this paragraph shall be used for
551Florida Owners' Awards pursuant to an agreement executed by the
552permitholder, the Florida Thoroughbred Breeders' Association,
553Inc., and the association representing a majority of the
554thoroughbred racehorse owners and trainers at the permitholder's
555facility. If an agreement is not reached 60 days before the
556commencement of the permitholder's racing meet, the funds shall
557be used for overnight purses.
558     (b)  An amount equal to 1.25 percent of the net terminal
559income shall be paid for breeders', stallion, or special racing
560awards. The Florida Thoroughbred Breeders' Association, Inc.,
561may receive these payments from the video lottery retailer and
562make payments of awards earned. The Florida Thoroughbred
563Breeders' Association, Inc., may withhold up to 10 percent of
564the permitholder's payments under this paragraph as a fee for
565administering the payments of awards and for the general
566promotion of the industry. The video lottery retailer shall make
567weekly payments to the permitholders and to Florida Thoroughbred
568Breeders' Association, Inc., at the same time it remits its
569allocation to the department.
570     Section 11.  Section 24.133, Florida Statutes, is created
571to read:
572     24.133  Notice of availability of assistance for compulsive
573gambling required.--
574     (1)  The owner of each facility at which video lottery
575games are conducted shall post a sign within 50 feet of each
576entrance that displays the following statement:
577
578"IF YOU OR SOMEONE YOU KNOW HAS A GAMBLING PROBLEM, HELP IS
579AVAILABLE. CALL 1-800-426-7711."
580
581     (2)  The department may approve additional toll-free
582numbers to ensure compliance with this section.
583     Section 12.  Section 24.134, Florida Statutes, is created
584to read:
585     24.134  Compulsive gambling program.--
586     (1)  Each video lottery retailer shall offer training to
587employees on responsible gaming and shall work with a compulsive
588gambling prevention program to recognize problem gaming
589situations and to implement responsible gaming programs and
590practices.
591     (2)  The department shall, subject to competitive bidding,
592contract for the provision of services related to the prevention
593of compulsive gambling. The contract shall provide for an
594advertising program to encourage responsible gaming practices
595and to publicize a gambling telephone help line. Such
596advertisements must be made both publicly and inside the gaming
597areas of the video lottery retailers' facilities. The terms of
598any contract for the provision of such services shall include
599accountability standards that must be met by any private
600provider. The failure of any private provider to meet any
601material terms of the contract, including the accountability
602standards, shall constitute a breach of contract or grounds for
603nonrenewal.
604     Section 13.  Section 24.136, Florida Statutes, is created
605to read:
606     24.136  Video lottery retailer caterer's license.--A video
607lottery retailer is entitled to a caterer's license pursuant to
608s. 565.02 on days on which the pari-mutuel facility is open to
609the public for video lottery play as authorized by this chapter.
610     Section 14.  Section 24.137, Florida Statutes, is created
611to read:
612     24.137  Other prohibited activities.--
613     (1)  Complimentary or reduced-cost alcoholic beverages may
614not be served to a person playing a video lottery terminal.
615Alcoholic beverages served to a person playing a video lottery
616terminal shall cost at least the same amount as alcoholic
617beverages served to the general public at a bar within the
618facility.
619     (2)  A video lottery retailer may not allow any automated
620teller machine or similar device that provides credit or
621dispenses cash to be located in the area where video lottery
622terminal gaming may be conducted pursuant to this chapter, nor
623may such retailer make loans, provide credit, or advance cash to
624enable a person to play a video lottery terminal. However,
625automated ticket redemption machines that dispense cash for the
626redemption of tickets may be located in such areas.
627     (3)  A video lottery retailer may not accept or cash any
628personal, third-party, corporate, business, or government-issued
629check from any person.
630     (4)  A video lottery terminal located within a video
631lottery retailer's facility shall accept only tickets or paper
632currency or an electronic payment system for wagering and shall
633return or deliver payouts to the player in the form of tickets
634that may be exchanged for cash, merchandise, or other items of
635value. The use of coins, credit or debit cards, tokens, or
636similar objects is prohibited. However, an electronic credit
637system may be used for receiving wagers and making payouts.
638     Section 15.  Section 24.138, Florida Statutes, is created
639to read:
640     24.138  Exclusions of certain persons.--In addition to the
641power to exclude certain persons from any facility of a video
642lottery retailer in this state, the department may exclude any
643person for conduct that would constitute, if the person were a
644licensee, a violation of this chapter, chapter 550, chapter 551,
645or a department rule. The department may exclude from any
646facility of a video lottery retailer any person who has been
647ejected from a facility of a video lottery retailer or slot
648machine licensee in this or any other state by the governmental
649department, agency, commission, or authority that regulates
650gaming in that state. This section does not abrogate the common
651law right of a video lottery retailer to exclude a patron
652absolutely in this state.
653     Section 16.  Section 24.139, Florida Statutes, is created
654to read:
655     24.139  Department office space.--A video lottery retailer
656shall provide adequate office space at no cost to the department
657for the oversight of video lottery terminal operations. The
658department shall adopt rules establishing the criteria for
659adequate space, configuration, and needed electronic and
660technological requirements for office space required by this
661section.
662     Section 17.  Subsection (24) of section 212.02, Florida
663Statues, is amended to read:
664     212.02  Definitions.--The following terms and phrases when
665used in this chapter have the meanings ascribed to them in this
666section, except where the context clearly indicates a different
667meaning:
668     (24)  "Coin-operated amusement machine" means any machine
669operated by coin, slug, token, coupon, or similar device for the
670purposes of entertainment or amusement. The term includes, but
671is not limited to, coin-operated pinball machines, music
672machines, juke boxes, mechanical games, video games, arcade
673games, billiard tables, moving picture viewers, shooting
674galleries, and all other similar amusement devices. The term
675does not include a video lottery terminal operated pursuant to
676chapter 24.
677     Section 18.  Subsection (4) of section 1011.62, Florida
678Statutes, is amended to read:
679     1011.62  Funds for operation of schools.--If the annual
680allocation from the Florida Education Finance Program to each
681district for operation of schools is not determined in the
682annual appropriations act or the substantive bill implementing
683the annual appropriations act, it shall be determined as
684follows:
685     (4)  COMPUTATION OF DISTRICT REQUIRED LOCAL EFFORT.--The
686Legislature shall prescribe the aggregate required local effort
687for all school districts collectively as an item in the General
688Appropriations Act for each fiscal year. The estimated video
689lottery terminal net income that is remitted to the Operating
690Trust Fund for transfer to the Educational Enhancement Trust
691Fund pursuant to s. 24.127(7) for the fiscal year shall be
692subtracted from the aggregate required local effort. The amount
693that each district shall provide annually toward the cost of the
694Florida Education Finance Program for kindergarten through grade
69512 programs shall be calculated as follows:
696     (a)  Estimated taxable value calculations.--
697     1.a.  Not later than 2 working days prior to July 19, the
698Department of Revenue shall certify to the Commissioner of
699Education its most recent estimate of the taxable value for
700school purposes in each school district and the total for all
701school districts in the state for the current calendar year
702based on the latest available data obtained from the local
703property appraisers. Not later than July 19, the Commissioner of
704Education shall compute a millage rate, rounded to the next
705highest one one-thousandth of a mill, which, when applied to 95
706percent of the estimated state total taxable value for school
707purposes, would generate the prescribed aggregate required local
708effort for that year for all districts. The Commissioner of
709Education shall certify to each district school board the
710millage rate, computed as prescribed in this subparagraph, as
711the minimum millage rate necessary to provide the district
712required local effort for that year.
713     b.  The General Appropriations Act shall direct the
714computation of the statewide adjusted aggregate amount for
715required local effort for all school districts collectively from
716ad valorem taxes to ensure that no school district's revenue
717from required local effort millage will produce more than 90
718percent of the district's total Florida Education Finance
719Program calculation, and the adjustment of the required local
720effort millage rate of each district that produces more than 90
721percent of its total Florida Education Finance Program
722entitlement to a level that will produce only 90 percent of its
723total Florida Education Finance Program entitlement in the July
724calculation.
725     2.  As revised data are received from property appraisers,
726the Department of Revenue shall amend the certification of the
727estimate of the taxable value for school purposes.
728     (b)  Final calculation.--
729     1.  On September 1 of each year, the Department of Revenue
730shall certify to the Commissioner of Education the total of the
731prior year final taxable value for school purposes in each
732school district and the total for all school districts in the
733state. The commissioner shall use the final taxable value
734certified on September 1 for school purposes for each school
735district in the final calculation of the annual Florida
736Education Finance Program allocations.
737     2.  For purposes of this paragraph, the final taxable value
738for school purposes shall be the taxable value for school
739purposes on which the tax bills are computed and mailed to the
740taxpayers, adjusted to reflect final administrative actions of
741value adjustment boards and judicial decisions pursuant to
742chapter 194. For each county that has not submitted a revised
743tax roll reflecting final value adjustment board actions and
744final judicial decisions, the Department of Revenue shall
745certify the most recent revision of the taxable value for school
746purposes. The value certified on September 1 shall be the final
747taxable value for school purposes for that year, and no further
748adjustments shall be made, except those made pursuant to
749paragraph (11)(b).
750     (c)  Equalization of required local effort.--
751     1.  The Department of Revenue shall include with its
752certifications provided pursuant to paragraph (a) its most
753recent determination of the assessment level of the prior year's
754assessment roll for each county and for the state as a whole.
755     2.  The Commissioner of Education shall adjust the required
756local effort millage of each district for the current year,
757computed pursuant to paragraph (a), as follows:
758     a.  The equalization factor for the prior year's assessment
759roll of each district shall be multiplied by 95 percent of the
760taxable value for school purposes shown on that roll and by the
761prior year's required local-effort millage, exclusive of any
762equalization adjustment made pursuant to this paragraph. The
763dollar amount so computed shall be the additional required local
764effort for equalization for the current year.
765     b.  Such equalization factor shall be computed as the
766quotient of the prior year's assessment level of the state as a
767whole divided by the prior year's assessment level of the
768county, from which quotient shall be subtracted 1.
769     c.  The dollar amount of additional required local effort
770for equalization for each district shall be converted to a
771millage rate, based on 95 percent of the current year's taxable
772value for that district, and added to the required local effort
773millage determined pursuant to paragraph (a).
774     3.  Notwithstanding the limitations imposed pursuant to s.
7751011.71(1), the total required local-effort millage, including
776additional required local effort for equalization, shall be an
777amount not to exceed 10 minus the maximum millage allowed as
778nonvoted discretionary millage, exclusive of millage authorized
779pursuant to s. 1011.71(2). Nothing herein shall be construed to
780allow a millage in excess of that authorized in s. 9, Art. VII
781of the State Constitution.
782     4.  For the purposes of this chapter, the term "assessment
783level" means the value-weighted mean assessment ratio for the
784county or state as a whole, as determined pursuant to s.
785195.096, or as subsequently adjusted. However, for those parcels
786studied pursuant to s. 195.096(3)(a)1. which are receiving the
787assessment limitation set forth in s. 193.155, and for which the
788assessed value is less than the just value, the department shall
789use the assessed value in the numerator and the denominator of
790such assessment ratio. In the event a court has adjudicated that
791the department failed to establish an accurate estimate of an
792assessment level of a county and recomputation resulting in an
793accurate estimate based upon the evidence before the court was
794not possible, that county shall be presumed to have an
795assessment level equal to that of the state as a whole.
796     5.  If, in the prior year, taxes were levied against an
797interim assessment roll pursuant to s. 193.1145, the assessment
798level and prior year's nonexempt assessed valuation used for the
799purposes of this paragraph shall be those of the interim
800assessment roll.
801     (d)  Exclusion.--
802     1.  In those instances in which:
803     a.  There is litigation either attacking the authority of
804the property appraiser to include certain property on the tax
805assessment roll as taxable property or contesting the assessed
806value of certain property on the tax assessment roll, and
807     b.  The assessed value of the property in contest involves
808more than 6 percent of the total nonexempt assessment roll, the
809plaintiff shall provide to the district school board of the
810county in which the property is located and to the Department of
811Education a certified copy of the petition and receipt for the
812good faith payment at the time they are filed with the court.
813     2.  For purposes of computing the required local effort for
814each district affected by such petition, the Department of
815Education shall exclude from the district's total nonexempt
816assessment roll the assessed value of the property in contest
817and shall add the amount of the good faith payment to the
818district's required local effort.
819     (e)  Recomputation.--Following final adjudication of any
820litigation on the basis of which an adjustment in taxable value
821was made pursuant to paragraph (d), the department shall
822recompute the required local effort for each district for each
823year affected by such adjustments, utilizing taxable values
824approved by the court, and shall adjust subsequent allocations
825to such districts accordingly.
826     Section 19.  Subsection (8) is added to section 550.09515,
827Florida Statutes, to read:
828     550.09515  Thoroughbred horse taxes; abandoned interest in
829a permit for nonpayment of taxes.--
830     (8)  Notwithstanding any other provision in this chapter, a
831thoroughbred permit that has been revoked by the division
832heretofore or hereafter pursuant to s. 550.5251 or has escheated
833to the state pursuant to this section shall be deemed to
834continue in existence and held by the division in abeyance
835subject to reissuance pursuant to this subsection. Any such
836permit shall be subject to reissuance by the division and shall
837be reissued to a qualified applicant for use at the same
838facility at which the permit was last operated as a thoroughbred
839permit. The prior holder of any revoked or escheated
840thoroughbred permit rendered subject to reissuance by this
841subsection shall not be disqualified for receipt of a reissued
842thoroughbred permit if the primary reason for the revocation or
843escheat of the thoroughbred permit was for any reason other than
844the prior holder's disqualification on grounds of moral
845turpitude. Nonpayment of taxes on handle shall not be considered
846a ground of moral turpitude. If more than one applicant applies
847for reissuance of a thoroughbred permit pursuant to the terms
848and conditions of this subsection, the division shall give
849preference to an applicant not currently in possession of
850another pari-mutuel permit issued pursuant to this chapter.
851     Section 20.  For the 2007-2008 fiscal year, the sum of $10
852million in recurring funds is appropriated from the Operating
853Trust Fund in the Department of the Lottery and 24 full-time
854equivalent positions and associated salary rate of 1,276,000 are
855authorized to implement the provisions of this act.
856     Section 21.  This act shall take effect upon becoming a
857law.


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