Senate Bill sb2434c2

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    Florida Senate - 2007                    CS for CS for SB 2434

    By the Committees on Finance and Tax; Regulated Industries;
    and Senator Geller




    593-2581-07

  1                      A bill to be entitled

  2         An act relating to video lotteries; amending s.

  3         24.103, F.S.; providing definitions; amending

  4         s. 24.105, F.S.; providing powers and duties of

  5         the Department of the Lottery pertaining to

  6         video lottery games; creating s. 24.125, F.S.;

  7         providing for the adoption of rules; creating

  8         s. 24.126, F.S.; prohibiting certain persons

  9         from playing video lottery games; creating s.

10         24.127, F.S.; providing requirements for the

11         operation of video lottery games; providing for

12         fines and orders of suspension; providing a

13         payout percentage; providing for the

14         distribution of income; providing for weekly

15         allocations; providing penalties; creating s.

16         24.128, F.S.; providing for the licensure of

17         video lottery terminal vendors; providing for

18         emergency rules; creating s. 24.129, F.S.;

19         prohibiting certain local zoning ordinances;

20         creating s. 24.130, F.S.; providing

21         requirements for video lottery terminals;

22         creating s. 24.131, F.S.; requiring video

23         lottery terminal vendors to establish training

24         programs for employees who service such

25         terminals; requiring departmental approval of

26         such programs; providing certification

27         requirements for such employees; providing for

28         the adoption of rules; creating s. 24.132,

29         F.S.; requiring video lottery retailers to

30         execute certain agreements governing the

31         payment of purses and special thoroughbred

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 1         racing awards; requiring the remittance of

 2         funds pursuant to such agreements; authorizing

 3         the department to sanction certain breeders;

 4         prohibiting the operation of video lottery

 5         games in the absence of agreements; requiring

 6         arbitration if agreements are not in place;

 7         requiring the video lottery retailer to make

 8         certain payments for the promotion of the

 9         racing industry; creating s. 24.133, F.S.;

10         requiring operators of facilities where video

11         lottery games are conducted to post certain

12         signs regarding compulsive gambling; creating

13         s. 24.134, F.S.; establishing programs for

14         compulsive gambling within the Department of

15         Children and Family Services; creating s.

16         24.136, F.S.; authorizing a caterer's license

17         for video lottery retailers; creating s.

18         24.137, F.S.; prohibiting video lottery

19         retailers from engaging in certain activities;

20         creating s. 24.138, F.S.; providing for the

21         exclusion of certain persons from a retailer's

22         premises; creating s. 24.139, F.S.; requiring

23         retailers to provide office space for

24         department employees; amending s. 212.02, F.S.;

25         excluding video lottery terminals from the

26         definition of the term "coin-operated amusement

27         machine" for purposes of the sales and use tax;

28         providing an effective date.

29  

30  Be It Enacted by the Legislature of the State of Florida:

31  

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 1         Section 1.  Subsections (7), (8), (9), (10), and (11)

 2  are added to section 24.103, Florida Statutes, to read:

 3         24.103  Definitions.--As used in this act:

 4         (7)  "Video lottery game" means an electronically

 5  simulated game involving any element of chance, skill, or

 6  both, played on a video lottery terminal that, upon insertion

 7  of currency, coins, tokens, credits, vouchers, or anything of

 8  value, is available to play or simulate a lottery-type game.

 9  The games include, but are not limited to, lineup games,

10  traditional card games, poker, and progressive games where the

11  jackpot grows and accumulates as it is being played in a video

12  lottery terminal, or network of video lottery terminals, using

13  a cathode ray tube, video display screen, microprocessors, or

14  other similar technology available now or in the future, as

15  approved by the department. A player may receive a payoff in

16  the form of currency, coins, tokens, credits, vouchers, or

17  anything of value, automatically or in some other manner.

18         (8)  "Video lottery terminal" means a machine or

19  device, including associated equipment that is required to

20  operate the machine or device upon which a video lottery game

21  is played or operated. A video lottery terminal may use

22  spinning reels or video displays or other similar technology

23  available now or in the future, as approved by the department.

24  A video lottery terminal is not a coin-operated amusement

25  machine as defined in s. 212.02(24) and does not include an

26  amusement game or machine as described in s. 849.161.

27         (9)  "Video lottery terminal vendor" means any person

28  licensed by the department who engages in the business of

29  selling, leasing, servicing, repairing, or upgrading video

30  lottery terminals for video lottery retailers or who provides

31  to the department or to a video lottery retailer computer

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 1  equipment, software, or other functions related to video

 2  lottery terminals.

 3         (10)  "Net terminal income" means currency and other

 4  consideration placed into a video lottery terminal, less

 5  payouts to or credits redeemed by players.

 6         (11)  "Video lottery retailer" means a pari-mutuel

 7  permitholder under chapter 550 who is conducting a full

 8  schedule of live races or games, as described in ss.

 9  550.002(11) and 550.475 as of October 1, 2007, or a person who

10  is authorized to receive broadcasts of horse races under s.

11  550.6308.

12         Section 2.  Subsections (21), (22), (23), (24), (25),

13  (26), and (27) are added to section 24.105, Florida Statutes,

14  to read:

15         24.105  Powers and duties of department.--The

16  department shall:

17         (21)  Have in place the capacity to support video

18  lottery games at facilities of video lottery retailers by

19  October 1, 2007.

20         (22)  Hear and decide promptly and in reasonable order

21  all video-lottery-related license applications and enforcement

22  proceedings for suspension or revocation of licenses.

23         (23)  Collect and disburse video lottery revenue due

24  the department as described in this chapter.

25         (24)  Certify net terminal income of video lottery

26  retailers by inspecting records, conducting audits, or any

27  other reasonable means.

28         (25)  Maintain a list of licensed video lottery

29  terminal vendors and a current list of all contracts between

30  video lottery terminal vendors and video lottery retailers.

31  

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 1         (26)  Approve an application for a video lottery

 2  retailer within 90 days after receipt of the application. A

 3  person meets all qualifications of licensure under this

 4  section if the person has been licensed under chapter 550 and

 5  meets the definition of a video lottery retailer under s.

 6  24.103(11).

 7         (27)  Contract with an independent testing laboratory

 8  to scientifically test and technically evaluate video lottery

 9  games, video lottery terminals, and video lottery operating

10  systems for compliance with this chapter. The independent

11  testing laboratory must have a national reputation as

12  demonstrably competent and qualified to scientifically test

13  and evaluate all components of a video lottery gaming system

14  and to otherwise perform the all functions assigned to it

15  under this chapter. The laboratory may not be owned or

16  controlled by a video lottery terminal vendor or video lottery

17  terminal retailer. The selection of an independent testing

18  laboratory shall be made from a list of one or more

19  laboratories approved and licensed by the department.

20         Section 3.  Section 24.125, Florida Statutes, is

21  created to read:

22         24.125  Rules authorized.--

23         (1)  The department may adopt rules similar to rules

24  adopted under chapter 551, relating to:

25         (a)  The regulation of video lottery retailers and

26  video lottery products.

27         (b)  Specifications for video lottery terminals to be

28  approved and authorized as the department considers necessary

29  in order to maintain the integrity of video lottery games and

30  terminals. The specifications may not limit the number of

31  

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 1  video lottery terminal vendors who supply terminals to fewer

 2  than four.

 3         (2)  Initial rules to permit the operation of video

 4  lotteries and the licensing of video lottery vendors shall be

 5  adopted by October 1, 2007. The department may adopt emergency

 6  rules under ss. 120.536(1) and 120.58(4) to implement this

 7  section.

 8         Section 4.  Section 24.126, Florida Statutes, is

 9  created to read:

10         24.126  Video lottery; minimum age.--

11         (1)  A person who is younger than 21 years of age may

12  not play a video lottery game.

13         (2)  Each video lottery retailer shall post a clear and

14  conspicuous sign on all video lottery terminals which states:

15  

16         THE USE OF A VIDEO LOTTERY TERMINAL BY PERSONS

17         UNDER THE AGE OF 21 IS AGAINST FLORIDA LAW.

18         PROOF OF AGE IS REQUIRED FOR USE.

19  

20         (3)  Any person who violates this section commits a

21  misdemeanor of the second degree, punishable as provided in s.

22  775.082 or s. 775.083.

23         Section 5.  Section 24.127, Florida Statutes, is

24  created to read:

25         24.127  Video lottery games.--

26         (1)  Video lottery games may be offered by a video

27  lottery retailer at any time only at the pari-mutuel facility

28  at which the video lottery retailer is licensed to conduct

29  pari-mutuel wagering between July 1, 2007, and June 30, 2008,

30  or at its relocated licensed pari-mutuel facility if the

31  relocation of such facility has been approved by the division

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 1  pursuant to s. 550.0555. During any calendar year in which a

 2  video lottery retailer maintains video lottery terminals, the

 3  retailer must have conducted in the prior year and must be

 4  currently licensed to conduct a full schedule of live racing

 5  or games, as defined in s. 550.002(11), including the conduct

 6  of races or games under s. 550.475, or be authorized to

 7  receive broadcasts of horse races under s. 550.6308. The

 8  department shall waive such requirements upon a showing that

 9  the failure to conduct races or games resulted from a natural

10  disaster, strike, or other acts beyond the control of the

11  permitholder, including legal restrictions or prohibitions

12  placed on the permitholder's activities. If the retailer for

13  any other reason does not comply with the requirement to

14  conduct a full schedule of races or games, the department

15  shall order the retailer to suspend its video lottery

16  operation. The department may assess an administrative fine,

17  not to exceed $5,000 per video lottery terminal per day,

18  against any retailer who does not suspend its video lottery

19  operation when ordered to do so by the department. The

20  department may enforce a suspension order or administrative

21  fine as provided in s. 120.69. Each video lottery retailer

22  shall post a bond payable to the state in an amount determined

23  by the department which is sufficient to guarantee the payment

24  of revenue due in any payment period. The initial bond prior

25  to commencement of operations by the video lottery retailer

26  shall be $2 million, issued by a surety approved by the

27  department, conditioned to make the payments to the

28  department. The bond shall be separate from the bond required

29  by s. 550.125.

30  

31  

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 1         (2)  Each video lottery terminal retailer shall

 2  determine the following pertaining to the video lottery

 3  terminals located on its premises:

 4         (a)  Number of video lottery terminals, not to exceed

 5  1,500 at any pari-mutuel facility;

 6         (b)  Dates and hours during which the video lottery

 7  terminals are available for play, not to exceed 16 hours a

 8  day, except that the hours of operation may be extended by

 9  majority vote of the governing body of the municipality where

10  the retailer is located or the governing body of the county if

11  the retailer is not located in a municipality;

12         (c)  Mix of games available for play on video lottery

13  terminals;

14         (d)  Use of currency, coins, tokens, vouchers,

15  electronic credits, or anything of value;

16         (e)  Location and movement of video lottery terminals

17  on the premises;

18         (f)  Staffing of video lottery terminal operations on

19  the premises; and

20         (g)  Minimum and maximum betting amounts and the

21  payout, based upon a suitable range, as determined by the

22  video lottery retailer, with a minimum of 85 percent of the

23  amount of currency, credits, vouchers, or anything of value

24  put into a video lottery terminal.

25         (3)  Each video lottery terminal retailer shall notify

26  the department before commencing the initial operation of the

27  video lottery games.

28         (4)  To facilitate the auditing and security programs

29  that are critical to the integrity of the video lottery

30  system, the department has overall control of the entire

31  system. Each video lottery terminal shall be linked, directly

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 1  or indirectly, to a computer system approved by the

 2  department.

 3         (5)  Video lottery games may be played at an authorized

 4  video lottery retailer's facility regardless of whether the

 5  retailer is conducting a pari-mutuel event.

 6         (6)  Income derived from video lottery operations is

 7  not subject to s. 24.121. The allocation of net terminal

 8  income derived from video lottery games shall be as follows:

 9         (a)  Fifty percent shall be remitted to the Video

10  Lottery Administration Trust Fund for transfer to the

11  Education Enhancement Trust Fund.

12         (b)  Fifty-hundredths percent shall be paid by the

13  video lottery retailer to the department to administer and

14  regulate the operation of video lottery terminals.

15         (7)  The allocation provided in subsection (6) shall be

16  made weekly. Amounts allocated pursuant to paragraphs (6)(a)

17  and (b) shall be remitted to the department by electronic

18  transfer within 24 hours after the allocation is determined.

19         (8)  Any person who intentionally manipulates or

20  attempts to manipulate the outcome, payoff, or operation of a

21  video lottery terminal by physical or electronic tampering or

22  other means commits a felony of the third degree, punishable

23  as provided in s. 775.082, s. 775.083, or s. 775.084.

24         (9)  Notwithstanding s. 24.115, each video lottery

25  retailer is responsible for payment of video lottery prizes.

26         (10)  In the area or room in a facility in which a

27  video lottery terminal is placed, the video lottery retailer

28  shall also place video monitors displaying live races or games

29  being conducted in that facility. If live races or games are

30  not being conducted at the facility, any simulcast races or

31  games that are displayed otherwise in the facility shall be

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 1  displayed.  In each area or room, the retailer shall also

 2  provide a means by which patrons may wager on pari-mutuel

 3  activity.

 4         Section 6.  Section 24.128, Florida Statutes, is

 5  created to read:

 6         24.128  Licensure of video lottery terminal

 7  vendors.--Video lottery terminal vendors shall be licensed by

 8  the department by July 1, 2007. The department may adopt

 9  emergency rules under ss. 120.536(1) and 120.54(4) to

10  implement this section. The department may not license a

11  person as a video lottery terminal vendor who has an interest

12  in a video lottery retailer or a business relationship with a

13  video lottery retailer other than as a vendor or lessor of

14  video lottery terminals.

15         Section 7.  Section 24.129, Florida Statutes, is

16  created to read:

17         24.129  Local zoning of pari-mutuel facilities.--The

18  installation, operation, or use of a video lottery on any

19  property where pari-mutuel operations were or would have been

20  lawful under any county or municipal zoning ordinance on July

21  1, 2006, does not change the character of the use of such

22  property. Such use is lawful and consistent with pari-mutuel

23  operations, and such use or the expansion or construction of

24  facilities to accommodate video lottery terminals on the

25  property is not subject to review or approval under land use,

26  zoning, or site plan review, or concurrency law, ordinance, or

27  regulation by any governmental entity.

28         Section 8.  Section 24.130, Florida Statutes, is

29  created to read:

30         24.130  Video lottery terminals.--

31  

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 1         (1)  Video lottery terminals may not be offered for use

 2  or play in this state unless approved by the department.

 3         (2)  Each video lottery terminal approved for use in

 4  this state shall:

 5         (a)  Be protected against manipulation to affect the

 6  random probabilities of winning plays.

 7         (b)  Have one or more mechanisms that accept currency,

 8  coins, tokens, vouchers, or anything of value in exchange for

 9  game credits. Such mechanisms must be designed to prevent

10  players from obtaining currency, coins, tokens, vouchers, or

11  anything of value, or from obtaining game credits, by physical

12  tampering.

13         (c)  Be capable of suspending play until reset at the

14  direction of the department as a result of physical tampering.

15         (d)  Be capable of being linked to a central computer

16  communications system to audit the operation, financial data,

17  and program information, as required by the department.

18         Section 9.  Section 24.131, Florida Statutes, is

19  created to read:

20         24.131  Video lottery terminal training program.--

21         (1)  Each licensed video lottery terminal vendor shall

22  submit a training program for the service and maintenance of

23  terminals and equipment for approval by the department. The

24  training program must include an outline of the training

25  curriculum; a list of instructors and their qualifications; a

26  copy of the instructional materials; and the dates, times, and

27  location of training classes. A service and maintenance

28  program may not be held unless approved by the department.

29         (2)  Each video lottery terminal service employee must

30  complete the requirements of the manufacturer's training

31  program before performing service, maintenance, or repairs on

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 1  video lottery terminals or associated equipment. Upon the

 2  successful completion of the training program by an employee,

 3  the department shall issue a certificate authorizing the

 4  employee to service, maintain, and repair video lottery

 5  terminals and associated equipment. A certificate of

 6  completion may not be issued to a person until the department

 7  determines that such person has completed the required

 8  training. Before being certified as a video lottery terminal

 9  service employee, a person must pass a background

10  investigation conducted by the department. The department may

11  revoke certification upon finding that a person is in

12  violation of this chapter or a department rule.

13         (3)  The department may adopt rules regarding the

14  training, qualifications, and certification of video lottery

15  terminal service employees.

16         Section 10.  Section 24.132, Florida Statutes, is

17  created to read:

18         24.132  Video lottery retailer; agreements required.--

19         (1)  A video lottery retailer who holds a permit under

20  chapter 550 to conduct pari-mutuel wagering meets of

21  thoroughbred racing may not conduct video lottery games unless

22  the retailer has on file with the division a binding written

23  agreement governing the payment of purses on live thoroughbred

24  races conducted at the retailer's pari-mutuel facility between

25  the retailer and the association representing a majority of

26  the thoroughbred racehorse owners and trainers at that

27  location. In addition, a video lottery retailer may not

28  conduct video lottery games unless it has on file with the

29  department a binding written agreement between it and the

30  Florida Thoroughbred Breeders' Association, Inc., governing

31  the payment of breeders', stallion, and special racing awards

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 1  on live thoroughbred races conducted at the retailer's

 2  pari-mutuel facility.

 3         (a)  The agreement governing purses and the agreement

 4  governing awards may direct the payment of such purses and

 5  awards from revenues generated by any wagering or gaming that

 6  the applicant is authorized to conduct.

 7         (b)  All purses and awards are subject to chapter 550.

 8  All sums for breeders', stallion, and special racing awards

 9  shall be remitted monthly to the Florida Thoroughbred

10  Breeders' Association, Inc., for the payment of awards subject

11  to the administrative fee authorized in s. 550.2625(3).

12         (2)  The department shall prohibit the operation of

13  video lottery games at a retailer's premises if an agreement

14  required under subsection (1) is terminated or otherwise

15  ceases to operate or if the department determines that the

16  retailer has materially failed to comply with the terms of an

17  agreement.

18         (3)  If an agreement required under subsection (1) is

19  not in place, either party may request the American

20  Arbitration Association to furnish a list of 11 arbitrators,

21  each of whom shall have at least 5 years of commercial

22  arbitration experience and no financial interest in or prior

23  relationship with any of the parties or their affiliated or

24  related entities or principals. Each party to the agreement

25  shall select a single arbitrator from the list provided within

26  10 days after receipt of the list and the arbitrators selected

27  shall choose one additional arbitrator from the same list

28  within the next 10 days.

29         (a)  If an agreement is not in place 60 days after the

30  request for a list of arbitrators, the matter shall be

31  immediately submitted for mandatory binding arbitration to

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 1  resolve the disagreement between the parties. The three

 2  arbitrators selected shall constitute the panel that will

 3  arbitrate the dispute between the parties pursuant to the

 4  American Arbitration Association Commercial Arbitration Rules

 5  and chapter 682.

 6         (b)  At the conclusion of the proceedings, which must

 7  be within 90 days after requesting the list of arbitrators,

 8  the arbitration panel shall present a proposed agreement to

 9  the parties which the majority of the panel believes equitably

10  balances the rights, interests, obligations, and reasonable

11  expectations of the parties. The parties shall immediately

12  enter into such agreement, which shall satisfy the

13  requirements of subsection (1) and permit the conduct of video

14  lottery games by the video lottery retailer. The agreement is

15  effective until the last day of the license or renewal period

16  or until the parties enter into a different agreement. Each

17  party shall pay its respective costs of arbitration and

18  one-half of the costs of the arbitration panel unless the

19  parties have agreed otherwise. If the agreement remains in

20  place 120 days before the scheduled issuance of the next

21  annual license renewal, the arbitration process established in

22  this subsection shall begin again.

23         (c)  If neither of the agreements required under

24  subsection (1) are in place, arbitration shall proceed

25  independently with separate lists of arbitrators, arbitration

26  panels, arbitration proceedings, and resulting agreements.

27         (d)  Arbitration and the resulting agreement governing

28  the payment of purses under subsection (1) shall be limited to

29  the payment of purses from net terminal income only.

30         (4)  A video lottery retailer who holds a limited

31  intertrack waging license pursuant to s. 550.6308 shall make

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 1  the following payments for the promotion and welfare of the

 2  thoroughbred racing industry:

 3         (a)  An amount equal to 12.5 of the net terminal income

 4  shall be paid to thoroughbred pari-mutuel permitholders that

 5  are licensed to conduct live races for purses. If more than

 6  one permitholder is licensed to conduct live races during the

 7  state thoroughbred racing season, the video lottery retailer

 8  shall allocate these funds between the operating permitholders

 9  on a pro rata basis based on the total live handle generated

10  during the previous racing season at the operating

11  permitholders' facilities. An amount equal to 7.5 percent of

12  the purse account generated under this paragraph shall be used

13  for Florida Owners' Awards pursuant to an agreement executed

14  by the permitholder, the Florida Thoroughbred Breeders'

15  Association, and the association representing a majority of

16  the thoroughbred racehorse owners and trainers at the

17  permitholder's facility. If an agreement is not reached 60

18  days before the commencement of the permitholder's racing

19  meet, the funds shall be used for overnight purses.

20         (b)  An amount equal to 1.25 percent of the net

21  terminal income shall be paid for breeders', stallion, or

22  special racing awards. The Florida Thoroughbred Breeders'

23  Association may receive these payments from the video lottery

24  retailer and make payments of awards earned. The Florida

25  Thoroughbred Breeders' Association may withhold up to 10

26  percent of the permitholder's payments under this paragraph as

27  a fee for administering the payments of awards and for the

28  general promotion of the industry. The video lottery retailer

29  shall make weekly payments to the permitholders and to the

30  Florida Thoroughbred Breeders' Association at the same time it

31  remits its allocation to the department.

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 1         Section 11.  Section 24.133, Florida Statutes, is

 2  created to read:

 3         24.133  Notice of availability of assistance for

 4  compulsive gambling required.--

 5         (1)  The owner of each facility at which video lottery

 6  games are conducted shall post signs that display the

 7  following statement:

 8  

 9         "IF YOU OR SOMEONE YOU KNOW HAS A GAMBLING

10         PROBLEM, HELP IS AVAILABLE, CALL

11         1-800-426-7711."

12  

13  The department may approve additional toll-free numbers to

14  ensure compliance with this section. The signs must be posted

15  within 50 feet of each entrance.

16         Section 12.  Section 24.134, Florida Statutes, is

17  created to read:

18         24.134  Compulsive gambling program.--The Mental Health

19  Program Office within the Department of Children and Family

20  Services shall establish a program for public education,

21  awareness, and training regarding problem and compulsive

22  gambling and the treatment and prevention of problem and

23  compulsive gambling. The program shall include:

24         (1)  Maintenance of a toll-free telephone number that

25  is operated by an advocacy organization for the treatment of

26  compulsive gambling in order to provide crisis counseling and

27  referral services to families that are experiencing difficulty

28  as a result of problem or compulsive gambling.

29         (2)  The promotion of public-awareness campaigns

30  regarding the recognition and prevention of problem or

31  compulsive gambling.

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 1         (3)  Facilitation, through inservice training and other

 2  means, of effective assistance programs for problem and

 3  compulsive gamblers and family members who are affected by

 4  problem and compulsive gambling.

 5         (4)  Studies to identify adults and juveniles in this

 6  state who are, or are at risk of becoming, problem or

 7  compulsive gamblers.

 8         Section 13.  Section 24.136, Florida Statutes, is

 9  created to read:

10         24.136  Licensure of video lottery retailer.--A video

11  lottery retailer is entitled to a caterer's license pursuant

12  to s. 565.02 on days in which the pari-mutuel facility is open

13  to the public for video lottery play as authorized by this

14  chapter.

15         Section 14.  Section 24.137, Florida Statutes, is

16  created to read:

17         24.137  Other prohibited activities.--

18         (1)  Complimentary or reduced-cost alcoholic beverages

19  may not be served to a person playing a video lottery

20  terminal. Alcoholic beverages served to a person playing a

21  video lottery terminal shall cost at least the same amount as

22  alcoholic beverages served to the general public at a bar

23  within the facility.

24         (2)  A video lottery retailer may not allow any

25  automated teller machine or similar device designated to

26  provide credit or dispense cash in the designated area where

27  video lottery terminal gaming may be conducted pursuant to

28  this chapter nor may such retailer make loans, provide credit,

29  or advance cash to enable a person to play a video lottery

30  terminal. However, automated ticket redemption machines that

31  

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 1  dispense cash resulting from the redemption of tickets may be

 2  located in such areas.

 3         (3)  A video lottery retailer may not accept or cash

 4  any personal, third-party, corporate, business, or

 5  government-issued check from any person.

 6         (4)  A video lottery terminal located within a video

 7  lottery retailer's facility shall accept only tickets or paper

 8  currency or an electronic payment system for wagering, and

 9  return or deliver payouts to the player in the form of tickets

10  that may be exchanged for cash, merchandise, or other items of

11  value. The use of coins, credit or debit cards, tokens, or

12  similar objects is prohibited. However, an electronic credit

13  system may be used for receiving wagers and making payouts.

14         Section 15.  Section 24.138, Florida Statutes, is

15  created to read:

16         24.138  Exclusions of certain persons.--In addition to

17  the power to exclude certain persons from any facility of a

18  video lottery terminal retailer in this state, the department

19  may exclude any person from any facility of a video lottery

20  terminal retailer for conduct that would constitute, if the

21  person were a licensee, a violation of this chapter, chapter

22  550 or chapter 551, or a department rule. The department may

23  exclude from any facility of a video lottery terminal retailer

24  any person who has been ejected from a facility of a video

25  lottery retailer or slot machine licensee in this or any other

26  state by the governmental department, agency, commission or

27  authority that regulates gaming in that state. This section

28  does not abrogate the common law right of a video lottery

29  terminal retailer to exclude a patron absolutely in this

30  state.

31  

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 1         Section 16.  Section 24.139, Florida Statutes, is

 2  created to read:

 3         24.139  Department office space.--A video lottery

 4  terminal retailer shall provide adequate office space at no

 5  cost to the department for the oversight of video lottery

 6  terminal operations. The department shall adopt rules

 7  establishing the criteria for adequate space, configuration,

 8  and needed electronic and technological requirements for

 9  office space required by this section.

10         Section 17.  Subsection (24) of section 212.02, Florida

11  Statues, is amended to read:

12         212.02  Definitions.--The following terms and phrases

13  when used in this chapter have the meanings ascribed to them

14  in this section, except where the context clearly indicates a

15  different meaning:

16         (24)  "Coin-operated amusement machine" means any

17  machine operated by coin, slug, token, coupon, or similar

18  device for the purposes of entertainment or amusement.  The

19  term includes, but is not limited to, coin-operated pinball

20  machines, music machines, juke boxes, mechanical games, video

21  games, arcade games, billiard tables, moving picture viewers,

22  shooting galleries, and all other similar amusement devices.

23  However, the term does not include a video lottery terminal

24  operated pursuant to chapter 24.

25         Section 18.  This act shall take effect upon becoming a

26  law.

27  

28  

29  

30  

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 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 2                            CS/SB 2434

 3                                 

 4   The Committee Substitute made the following changes to CS/SB
    2434:
 5  
    1.   Defines "video lottery retailer" to mean a pari-mutuel
 6       permitholder under ch. 550 who is conducting a full
         schedule of live races or games, as described in ss.
 7       550.002(11) and 550.475 as of October 1, 2007, between
         July 1, 2006, and June 30, 2007, or a person who is
 8       authorized to receive broadcasts of horse races under s.
         550.6308.
 9  
    2.   Requires the Department of the Lottery to contract with
10       an independent testing laboratory to scientifically test
         and technically evaluate video lottery games, video
11       lottery terminals, and video lottery operating systems
         for compliance with this act.
12  
    3.   Authorizes video lottery games to be offered by a video
13       lottery retailer at any time only at the pari-mutuel
         facility at which the video lottery retailer is licensed
14       to conduct pari-mutuel wagering.

15  4.   Requires that in order to conduct video lottery games at
         a thoroughbred racing facility, a video lottery retailer
16       must have an agreement governing the payment of purses on
         live thoroughbred races conducted at the retailer's
17       pari-mutuel facility between the retailer and the
         association representing a majority of the thoroughbred
18       racehorse owners and trainers at that location.

19  5.   Clarifies that a video lottery terminal is not an
         amusement game or machine.
20  

21  

22  

23  

24  

25  

26  

27  

28  

29  

30  

31  

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