Senate Bill sb2434c3

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    Florida Senate - 2007             CS for CS for CS for SB 2434

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




    601-2649-07

  1                      A bill to be entitled

  2         An act relating to electronic gaming machines;

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

  4         definitions; amending s. 24.105, F.S.;

  5         providing powers and duties of the Department

  6         of the Lottery pertaining to video lottery

  7         games; creating s. 24.125, F.S.; providing for

  8         the adoption of rules; creating s. 24.126,

  9         F.S.; prohibiting certain persons from playing

10         video lottery games; creating s. 24.127, F.S.;

11         providing requirements for the operation of

12         video lottery games; providing for fines and

13         orders of suspension; providing a payout

14         percentage; providing for a license fee;

15         providing for the distribution of income;

16         providing for weekly allocations; providing

17         penalties; creating s. 24.128, F.S.; providing

18         for the licensure of video lottery terminal

19         vendors; providing for emergency rules;

20         creating s. 24.129, F.S.; prohibiting certain

21         local zoning ordinances; creating s. 24.130,

22         F.S.; providing requirements for video lottery

23         terminals; creating s. 24.131, F.S.; requiring

24         video lottery terminal vendors to establish

25         training programs for employees who service

26         such terminals; requiring departmental approval

27         of such programs; providing certification

28         requirements for such employees; providing for

29         the adoption of rules; creating s. 24.132,

30         F.S.; requiring video lottery retailers to

31         execute certain agreements governing the

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 1         payment of purses and special thoroughbred

 2         racing awards; requiring the remittance of

 3         funds pursuant to such agreements; authorizing

 4         the department to sanction certain breeders;

 5         prohibiting the operation of video lottery

 6         games in the absence of agreements; requiring

 7         arbitration if agreements are not in place;

 8         requiring the video lottery retailer to make

 9         certain payments for the promotion of the

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

11         requiring operators of facilities where video

12         lottery games are conducted to post certain

13         signs regarding compulsive gambling; creating

14         s. 24.134, F.S.; providing compulsive gambling

15         programs; creating s. 24.136, F.S.; authorizing

16         a caterer's license for video lottery

17         retailers; creating s. 24.137, F.S.;

18         prohibiting video lottery retailers from

19         engaging in certain activities; creating s.

20         24.138, F.S.; providing for the exclusion of

21         certain persons from a retailer's premises;

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

23         to provide office space for department

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

25         video lottery terminals from the definition of

26         the term "coin-operated amusement machine" for

27         purposes of the sales and use tax; amending s.

28         551.102, F.S.; defining the term "nonredeemable

29         credits"; redefining the term "slot machine

30         revenues"; amending s. 551.103, F.S.; deleting

31         a requirement that the Division of Pari-mutuel

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 1         Wagering annually adjust the amount of the bond

 2         supplied by a slot machine licensee;

 3         establishing the annual amount of bond

 4         required; providing for procedures for drug

 5         testing; amending s. 551.104, F.S.; providing

 6         for implementation of a drug-testing program;

 7         amending s. 551.1045, F.S.; providing

 8         procedures for temporary occupational licenses;

 9         deleting provisions for temporary licensees to

10         be adopted within 180 days; amending s.

11         551.106, F.S.; establishing when payment of the

12         annual slot machine license fee must be made by

13         a licensee; providing for tax credits on slot

14         machine revenues; amending s. 551.107, F.S.;

15         authorizing the division to adopt rules to

16         create a single occupational license; providing

17         for validity; providing for additional

18         disciplinary actions; amending s. 551.109,

19         F.S.; exempting slot machine manufacturers and

20         distributors, certain educational facilities,

21         the division, and the Department of Law

22         Enforcement from certain prohibitions against

23         possessing slot machines at a place other than

24         the licensee's facility under certain

25         circumstances; authorizing agency rulemaking;

26         amending s. 551.114, F.S.; increasing the

27         number of slot machines a licensee may make

28         available for play; amending s. 551.116, F.S.;

29         increasing the hours that slot machine gaming

30         areas may be open upon local government

31         approval; amending s. 551.121, F.S.;

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 1         authorizing automatic teller machines in

 2         certain areas of a pari-mutuel facility;

 3         excluding check cashing in the designated slot

 4         machine gaming areas; amending s. 849.15, F.S.;

 5         clarifying the authority to legally ship slot

 6         machines into the state under certain

 7         circumstances; providing an appropriation and

 8         authorizing additional positions; providing an

 9         effective date.

10  

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

12  

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

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

15         24.103  Definitions.--As used in this act:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

31  device, including associated equipment that is required to

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

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

 3  spinning reels or video displays or other similar technology

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

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

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

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

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

 9  licensed by the department who is in the business of selling,

10  leasing, servicing, repairing, or upgrading video lottery

11  terminals for video lottery retailers or who provides to the

12  department or to a video lottery retailer computer equipment,

13  software, or other functions related to video lottery

14  terminals.

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

16  consideration placed into a video lottery terminal, less

17  payouts to or credits redeemed by players.

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

19  permitholder under chapter 550 who holds a license to conduct

20  a full schedule of live races or games, as described in s.

21  550.002(11), between July 1, 2007, and June 30, 2008, or a

22  person who is authorized to receive broadcasts of horseraces

23  under s. 550.6308.

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

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

26  to read:

27         24.105  Powers and duties of department.--The

28  department shall:

29         (21)  Have the capacity to support video lottery games

30  at facilities of video lottery retailers by January 1, 2008.

31  

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

 2  all video-lottery-related license applications and enforcement

 3  proceedings for suspension or revocation of licenses.

 4         (23)  Collect and disburse video lottery revenue due

 5  the department as described in this chapter.

 6         (24)  Certify net terminal income of video lottery

 7  retailers by inspecting records, conducting audits, or any

 8  other reasonable means.

 9         (25)  Maintain a list of licensed video lottery

10  terminal vendors and a current list of all contracts between

11  video lottery terminal vendors and video lottery retailers.

12         (26)  Approve an application for a video lottery

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

14  person meets all qualifications of licensure under this

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

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

17  24.103(11).

18         (27)  Adopt procedures by rule for scientifically

19  testing and technically evaluating video lottery terminals for

20  compliance with this chapter. The department may contract with

21  an independent testing laboratory to scientifically test and

22  technically evaluate video lottery games, video lottery

23  terminals, and video lottery operating systems for compliance

24  with this chapter. The independent testing laboratory must

25  have a national reputation as demonstrably competent and

26  qualified to scientifically test and evaluate all components

27  of a video lottery gaming system and to otherwise perform all

28  functions assigned to it under this chapter. The laboratory

29  may not be owned or controlled by a video lottery terminal

30  vendor or video lottery terminal retailer. The selection of an

31  independent testing laboratory shall be made from a list of

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 1  one or more laboratories approved and licensed by the

 2  department.

 3         Section 3.  Section 24.125, Florida Statutes, is

 4  created to read:

 5         24.125  Rules authorized.--

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

 7  adopted under chapter 551, relating to:

 8         (a)  The regulation of video lottery retailers, video

 9  lottery terminal vendors, video lottery games, and video

10  lottery products.

11         (b)  Specifications for approving and authorizing video

12  lottery terminals in order to maintain the integrity of video

13  lottery games and terminals. The specifications may not limit

14  the number of video lottery terminal vendors who supply

15  terminals to fewer than four.

16         (c)  Hearing and approving or disapproving video

17  lottery-related license applications, and enforcement

18  procedures related to suspension and revocation of licenses.

19         (d)  The collection and disbursement of video lottery

20  revenue.

21         (e)  The certification of net terminal income of video

22  lottery retailers. 

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

24  lotteries and the licensing of video lottery vendors shall be

25  adopted by January 1, 2008. The department may adopt emergency

26  rules under ss. 120.536(1) and 120.54(4) to implement this

27  section.

28         Section 4.  Section 24.126, Florida Statutes, is

29  created to read:

30         24.126  Video lottery; minimum age.--

31  

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

 2  not play a video lottery game.

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

 4  conspicuous sign on all video lottery terminals which states:

 5  

 6         THE USE OF A VIDEO LOTTERY TERMINAL BY PERSONS

 7         UNDER THE AGE OF 21 IS AGAINST FLORIDA LAW.

 8         PROOF OF AGE IS REQUIRED FOR USE.

 9  

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

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

12  775.082 or s. 775.083.

13         Section 5.  Section 24.127, Florida Statutes, is

14  created to read:

15         24.127  Video lottery games.--

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

17  lottery retailer only at the pari-mutuel facility at which the

18  video lottery retailer is licensed to conduct pari-mutuel

19  wagering between July 1, 2007, and June 30, 2008, or at its

20  relocated licensed pari-mutuel facility if the relocation of

21  such facility has been approved by the Division of Pari-mutuel

22  Wagering pursuant to s. 550.0555. During any calendar year in

23  which a video lottery retailer maintains video lottery

24  terminals, the retailer must be licensed to conduct a full

25  schedule of live racing or games, as defined in s.

26  550.002(11), including the conduct of races or games under s.

27  550.475, or be authorized to receive broadcasts of horse races

28  under s. 550.6308. The department shall waive such

29  requirements upon a showing that the failure to conduct races

30  or games resulted from a natural disaster, strike, or other

31  acts beyond the control of the permitholder, including legal

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 1  restrictions or prohibitions placed on the permitholder's

 2  activities. If the retailer does not comply with the

 3  requirement to conduct a full schedule of races or games for

 4  any other reason, the department shall order the retailer to

 5  suspend its video lottery operation. The department may assess

 6  an administrative fine, not to exceed $5,000 per video lottery

 7  terminal per day, against any retailer who does not suspend

 8  its video lottery operation when ordered to do so by the

 9  department. The department may enforce a suspension order or

10  administrative fine as provided in s. 120.69. Each video

11  lottery retailer shall post a bond payable to the state in an

12  amount determined by the department as sufficient to guarantee

13  the payment of revenue due in any payment period. The initial

14  bond prior to commencement of operations by the video lottery

15  retailer shall be $2 million, issued by a surety approved by

16  the department, conditioned to make the payments to the

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

18  by s. 550.125.

19         (2)  Each video lottery terminal retailer shall

20  determine the following pertaining to the video lottery

21  terminals located on its premises:

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

23  1,500 at any pari-mutuel facility;

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

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

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

27  majority vote of the governing body of the municipality where

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

29  the retailer is not located in a municipality;

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

31  terminals;

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

 2  electronic credits, or anything of value;

 3         (e)  Location and movement of video lottery terminals

 4  on the premises;

 5         (f)  Staffing of video lottery terminal operations on

 6  the premises; and

 7         (g)  Minimum and maximum betting amounts and the

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

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

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

11  put into a video lottery terminal.

12         (3)  Each video lottery terminal retailer shall notify

13  the department before commencing the initial operation of

14  video lottery games.

15         (4)  To facilitate the auditing and security programs

16  that are critical to the integrity of the video lottery

17  system, the department shall have overall control of the

18  entire system. Each video lottery terminal shall be linked,

19  directly or indirectly, to a computer system operated by the

20  department or by a vendor contracting with the department.

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

22  video lottery retailer's facility regardless of whether the

23  retailer is conducting a pari-mutuel event.

24         (6)  Upon submission of the initial application for a

25  video lottery retailer license and annually thereafter on the

26  anniversary date of the issuance of the initial license, the

27  licensee must pay a nonrefundable license fee of $3 million to

28  the department.  The license fee shall be deposited into the

29  Operating Trust Fund of the Department of Lottery to be used

30  by the department to administer this act.

31  

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 1         (7)  Income derived from video lottery operations is

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

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

 4         (a)  Fifty percent shall be remitted to the Operating

 5  Trust Fund for transfer to the Education Enhancement Trust

 6  Fund.

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

 8  video lottery retailer to the department to administer and

 9  regulate the operation of video lottery terminals. Funds in

10  excess of the department's administrative costs shall be

11  transferred to the Educational Enhancement Trust Fund.

12         (8)  The allocation provided in subsection (7) shall be

13  made weekly. Amounts allocated shall be remitted to the

14  department by electronic transfer within 24 hours after the

15  allocation is determined.

16         (9)  Any person who intentionally manipulates or

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

18  video lottery terminal by physical or electronic tampering or

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

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

21         (10)  Notwithstanding s. 24.115, each video lottery

22  retailer is responsible for payment of video lottery prizes.

23         (11)  In the area or room in a facility in which a

24  video lottery terminal is placed, the video lottery retailer

25  shall also place video monitors displaying live races or games

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

27  not being conducted, any simulcast races or games that are

28  otherwise displayed in the facility shall be displayed.  In

29  each area or room, the retailer shall also provide a means for

30  patrons to wager on pari-mutuel activity.

31  

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 1         Section 6.  Section 24.128, Florida Statutes, is

 2  created to read:

 3         24.128  Licensure of video lottery terminal

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

 5  the department by October 1, 2007. The department may adopt

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

 7  implement this section. The department may not license a

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

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

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

11  video lottery terminals.

12         Section 7.  Section 24.129, Florida Statutes, is

13  created to read:

14         24.129  Local zoning of pari-mutuel facilities.--The

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

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

17  lawful under any county or municipal zoning ordinance on July

18  1, 2006, does not change the character of the use of such

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

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

21  facilities to accommodate video lottery terminals on the

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

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

24  regulation by any governmental entity.

25         Section 8.  Section 24.130, Florida Statutes, is

26  created to read:

27         24.130  Video lottery terminals.--

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

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

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

31  this state must:

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 1         (a)  Be protected against manipulation to affect the

 2  random probabilities of winning plays.

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

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

 5  game credits. Such mechanisms must be designed to prevent

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

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

 8  tampering.

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

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

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

12  communications system to audit the operation, financial data,

13  and program information, as required by the department.

14         Section 9.  Section 24.131, Florida Statutes, is

15  created to read:

16         24.131  Video lottery terminal training program.--

17         (1)  Each licensed video lottery terminal vendor shall

18  submit a training program for the service and maintenance of

19  terminals and equipment for approval by the department. The

20  training program must include an outline of the training

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

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

23  location of training classes. A service and maintenance

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

25         (2)  Each video lottery terminal service employee must

26  complete the requirements of the manufacturer's training

27  program before performing service, maintenance, or repairs on

28  video lottery terminals or associated equipment. Upon the

29  successful completion of the training program by an employee,

30  the department shall issue a certificate authorizing the

31  employee to service, maintain, and repair video lottery

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 1  terminals and associated equipment. A certificate of

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

 3  determines that such person has completed the required

 4  training. Before being certified as a video lottery terminal

 5  service employee, a person must pass a background

 6  investigation conducted by the department. The department may

 7  revoke certification upon finding that a person is in

 8  violation of this chapter or department rule.

 9         (3)  The department may adopt rules regarding the

10  training, qualifications, and certification of video lottery

11  terminal service employees.

12         Section 10.  Section 24.132, Florida Statutes, is

13  created to read:

14         24.132  Video lottery retailer; agreements required.--

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

16  chapter 550 to conduct pari-mutuel wagering meets of

17  thoroughbred racing may not conduct video lottery games unless

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

19  agreement governing the payment of purses on live thoroughbred

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

21  the retailer and the association representing a majority of

22  the thoroughbred racehorse owners and trainers at that

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

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

25  department a binding written agreement between it and the

26  Florida Thoroughbred Breeders' Association, Inc., governing

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

28  on live thoroughbred races conducted at the retailer's

29  pari-mutuel facility.

30         (a)  The agreement governing purses and the agreement

31  governing awards may direct the payment of such purses and

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 1  awards from revenues generated by any wagering or gaming that

 2  the applicant is authorized to conduct.

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

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

 5  shall be remitted monthly to the Florida Thoroughbred

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

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

 8         (2)  The department shall prohibit the operation of

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

10  required under subsection (1) is terminated or otherwise

11  ceases to operate or if the department determines that the

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

13  agreement.

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

15  not in place, either party may request the American

16  Arbitration Association to furnish a list of 11 arbitrators,

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

18  arbitration experience and no financial interest in or prior

19  relationship with any of the parties or their affiliated or

20  related entities or principals. Each party to the agreement

21  shall select a single arbitrator from the list provided within

22  10 days after receipt of the list and the arbitrators selected

23  shall choose one additional arbitrator from the same list

24  within the next 10 days.

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

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

27  immediately submitted for mandatory binding arbitration to

28  resolve the disagreement between the parties. The three

29  arbitrators selected shall constitute the panel that will

30  arbitrate the dispute between the parties pursuant to the

31  

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 1  American Arbitration Association Commercial Arbitration Rules

 2  and chapter 682.

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

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

 5  the arbitration panel shall present a proposed agreement to

 6  the parties which the majority of the panel believes equitably

 7  balances the rights, interests, obligations, and reasonable

 8  expectations of the parties. The parties shall immediately

 9  enter into such agreement, which shall satisfy the

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

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

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

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

14  party shall pay its respective costs of arbitration and

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

16  parties have agreed otherwise. If the agreement remains in

17  place 120 days before the scheduled issuance of the next

18  annual license renewal, the arbitration process established in

19  this subsection shall begin again.

20         (c)  If neither of the agreements required under

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

22  independently with separate lists of arbitrators, arbitration

23  panels, arbitration proceedings, and resulting agreements.

24         (d)  Arbitration and the resulting agreement governing

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

26  the payment of purses from net terminal income only.

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

28  intertrack waging license pursuant to s. 550.6308 shall make

29  the following payments for the promotion and welfare of the

30  thoroughbred racing industry:

31  

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

 2  shall be paid to thoroughbred pari-mutuel permitholders that

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

 4  one permitholder is licensed to conduct live races during the

 5  state thoroughbred racing season, the video lottery retailer

 6  shall allocate these funds between the operating permitholders

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

 8  during the previous racing season at the operating

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

10  the purse account generated under this paragraph shall be used

11  for Florida Owners' Awards pursuant to an agreement executed

12  by the permitholder, the Florida Thoroughbred Breeders'

13  Association, and the association representing a majority of

14  the thoroughbred racehorse owners and trainers at the

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

16  days before the commencement of the permitholder's racing

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

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

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

20  special racing awards. The Florida Thoroughbred Breeders'

21  Association may receive these payments from the video lottery

22  retailer and make payments of awards earned. The Florida

23  Thoroughbred Breeders' Association may withhold up to 10

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

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

26  general promotion of the industry. The video lottery retailer

27  shall make weekly payments to the permitholders and to the

28  Florida Thoroughbred Breeders' Association at the same time it

29  remits its allocation to the department.

30         Section 11.  Section 24.133, Florida Statutes, is

31  created to read:

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 1         24.133  Notice of availability of assistance for

 2  compulsive gambling required.--

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

 4  games are conducted shall post signs that display the

 5  following statement:

 6  

 7         "IF YOU OR SOMEONE YOU KNOW HAS A GAMBLING

 8         PROBLEM, HELP IS AVAILABLE, CALL

 9         1-800-426-7711."

10  

11  The department may approve additional toll-free numbers to

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

13  within 50 feet of each entrance.

14         Section 12.  Section 24.134, Florida Statutes, is

15  created to read:

16         24.134  Compulsive gambling program.--

17         (1)  The video lottery retailer shall offer training to

18  employees on responsible gaming and shall work with a

19  compulsive gambling prevention program to recognize problem

20  gaming situations and to implement responsible gaming programs

21  and practices.

22         (2)  The department shall, subject to competitive

23  bidding, contract for the provision of services related to the

24  prevention of compulsive gambling.  The contract shall provide

25  for an advertising program to encourage responsible gaming

26  practices and to publicize a gambling telephone help line.

27  Such advertisements must be made both publicly and inside the

28  gaming areas of the video lottery retailers' facilities.  The

29  terms of any contract for the provision of such services shall

30  include accountability standards that must be met by any

31  private provider.  The failure of any private provider to meet

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 1  any material terms of the contract, including the

 2  accountability standards, shall constitute a breach of

 3  contract or grounds for nonrenewal.

 4         Section 13.  Section 24.136, Florida Statutes, is

 5  created to read:

 6         24.136  Licensure of video lottery retailer.--A video

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

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

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

10  chapter.

11         Section 14.  Section 24.137, Florida Statutes, is

12  created to read:

13         24.137  Other prohibited activities.--

14         (1)  Complimentary or reduced-cost alcoholic beverages

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

16  terminal. Alcoholic beverages served to a person playing a

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

18  alcoholic beverages served to the general public at a bar

19  within the facility.

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

21  automated teller machine or similar device that provides

22  credit or dispenses cash in the area where video lottery

23  terminal gaming may be conducted pursuant to this chapter nor

24  may such retailer make loans, provide credit, or advance cash

25  to enable a person to play a video lottery terminal. However,

26  automated ticket redemption machines that dispense cash for

27  the redemption of tickets may be located in such areas.

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

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

30  government-issued check from any person.

31  

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

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

 3  currency or an electronic payment system for wagering, and

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

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

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

 7  similar objects is prohibited. However, an electronic credit

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

 9         Section 15.  Section 24.138, Florida Statutes, is

10  created to read:

11         24.138  Exclusions of certain persons.--In addition to

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

13  video lottery terminal retailer in this state, the department

14  may exclude any person for conduct that would constitute, if

15  the person were a licensee, a violation of this chapter,

16  chapter 550 or chapter 551, or a department rule. The

17  department may exclude from any facility of a video lottery

18  terminal retailer any person who has been ejected from a

19  facility of a video lottery retailer or slot machine licensee

20  in this or any other state by the governmental department,

21  agency, commission or authority that regulates gaming in that

22  state. This section does not abrogate the common law right of

23  a video lottery terminal retailer to exclude a patron

24  absolutely in this state.

25         Section 16.  Section 24.139, Florida Statutes, is

26  created to read:

27         24.139  Department office space.--A video lottery

28  terminal retailer shall provide adequate office space at no

29  cost to the department for the oversight of video lottery

30  terminal operations. The department shall adopt rules

31  establishing the criteria for adequate space, configuration,

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 1  and needed electronic and technological requirements for

 2  office space required by this section.

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

 4  Statues, is amended to read:

 5         212.02  Definitions.--The following terms and phrases

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

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

 8  different meaning:

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

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

11  device for the purposes of entertainment or amusement.  The

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

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

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

15  shooting galleries, and all other similar amusement devices.

16  The term does not include a video lottery terminal operated

17  pursuant to chapter 24.

18         Section 18.  Present subsections (6) through (12) of

19  section 551.102, Florida Statutes, are redesignated as

20  subsections (7) through (13), respectively, a new subsection

21  (6) is added to that section, and present subsection (12) of

22  that section is amended, to read:

23         551.102  Definitions.--As used in this chapter, the

24  term:

25         (6)  "Nonredeemable credits" means slot machine

26  operating credits that cannot be redeemed for cash or any

27  other thing of value by a slot machine, kiosk, or the slot

28  machine licensee and that are provided free of charge to

29  patrons. Such credits do not constitute "nonredeemable

30  credits" until such time as they are metered as credit into a

31  

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 1  slot machine and recorded in the facility-based monitoring

 2  system.

 3         (13)(12)  "Slot machine revenues" means the total of

 4  all cash and property, except nonredeemable credits, received

 5  by the slot machine licensee from the operation of slot

 6  machines less the amount of cash, cash equivalents, credits,

 7  and prizes paid to winners of slot machine gaming.

 8         Section 19.  Paragraph (f) of subsection (1) of section

 9  551.103, Florida Statutes, is amended, and paragraph (j) is

10  added to that subsection, to read:

11         551.103  Powers and duties of the division and law

12  enforcement.--

13         (1)  The division shall adopt, pursuant to the

14  provisions of ss. 120.536(1) and 120.54, all rules necessary

15  to implement, administer, and regulate slot machine gaming as

16  authorized in this chapter. Such rules must include:

17         (f)  Procedures for requiring each licensee at his or

18  her own cost and expense to supply the division with a bond

19  having the penal sum of $2 million payable to the Governor and

20  his or her successors in office for each year of the

21  licensee's first year of slot machine operations. Annually

22  thereafter, the licensee shall file a bond having a penal sum

23  that is determined each year by the division pursuant to rules

24  adopted by the division and that approximates the anticipated

25  state revenues from the licensee's slot machine operation;

26  however, the bond may not in any case be less than $2 million.

27  Any bond shall be issued by a surety or sureties approved by

28  the division and the Chief Financial Officer, conditioned to

29  faithfully make the payments to the Chief Financial Officer in

30  his or her capacity as treasurer of the division. The licensee

31  shall be required to keep its books and records and make

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 1  reports as provided in this chapter and to conduct its slot

 2  machine operations in conformity with this chapter and all

 3  other provisions of law. Such bond shall be separate and

 4  distinct from the bond required in s. 550.125.

 5         (j)  Procedures for requiring slot machine licensees to

 6  implement and establish drug-testing programs for all slot

 7  machine occupational licensees.

 8         Section 20.  Paragraph (i) of subsection (4) of section

 9  551.104, Florida Statutes, is amended to read:

10         551.104  License to conduct slot machine gaming.--

11         (4)  As a condition of licensure and to maintain

12  continued authority for the conduct of slot machine gaming,

13  the slot machine licensee shall:

14         (i)  Create and file with the division a written policy

15  for:

16         1.  Creating opportunities to purchase from vendors in

17  this state, including minority vendors.

18         2.  Creating opportunities for employment of residents

19  of this state, including minority residents.

20         3.  Ensuring opportunities for construction services

21  from minority contractors.

22         4.  Ensuring that opportunities for employment are

23  offered on an equal, nondiscriminatory basis.

24         5.  Training for employees on responsible gaming and

25  working with a compulsive or addictive gambling prevention

26  program to further its purposes as provided for in s. 551.118.

27         6.  The implementation of a drug-testing program that

28  includes, but is not limited to, requiring each employee to

29  sign an agreement that he or she understands that the slot

30  machine facility is a drug-free workplace.

31  

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 1  The slot machine licensee shall use the Internet-based

 2  job-listing system of the Agency for Workforce Innovation in

 3  advertising employment opportunities. Beginning in June 2007,

 4  each slot machine licensee shall provide an annual report to

 5  the division containing information indicating compliance with

 6  this paragraph in regard to minority persons.

 7         Section 21.  Section 551.1045, Florida Statutes, is

 8  amended to read:

 9         551.1045  Temporary licenses.--

10         (1)  Notwithstanding any provision of s. 120.60 to the

11  contrary, the division may issue a temporary occupational

12  license upon the receipt of a complete application from the

13  applicant and a determination if the applicant has not been

14  convicted of or had adjudication withheld on any disqualifying

15  criminal offense. The temporary occupational license remains

16  valid until such time as the division grants an occupational

17  license or notifies the applicant of its intended decision to

18  deny the applicant a license pursuant to the provisions of s.

19  120.60. The division shall adopt rules to administer this

20  subsection. However, not more than one temporary license may

21  be issued for any person in any year.

22         (1)(a)  After 180 days following the effective date of

23  this act, if the division has not adopted rules to implement

24  the provisions of this chapter that allow for the issuance of

25  slot machine licenses within such 180 days, the division shall

26  issue a temporary slot machine license to an applicant if the

27  applicant holds a valid pari-mutuel permit in good standing

28  under chapter 550, the applicant's ownership interests have

29  been previously approved as provided in chapter 550, and the

30  applicant has conducted live racing or games during the

31  calendar years 2002 and 2003 and has paid the license fee

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 1  provided in s. 551.106(1). The slot machine license will

 2  permit the licensee to conduct slot machine gaming in the

 3  designated slot machine gaming areas of the eligible facility.

 4         (b)  The temporary license is valid until the division

 5  has adopted rules implementing the provisions of this chapter

 6  and taken final action on the filed application under its

 7  final adopted rules. Once the division has adopted rules

 8  implementing the provisions of this chapter, it shall complete

 9  review of any filed application and shall issue a license

10  under s. 551.104 if the licensee meets the requirements of

11  this chapter and rules adopted by the division.

12         (2)(a)  A manufacturer or distributor of slot machines

13  who has applied for a license under s. 551.107 shall be issued

14  a temporary business occupational license if it holds a valid

15  license to manufacture or distribute slot machines in a state

16  where gaming is lawful.

17         (b)  The temporary license is valid until the division

18  has adopted rules implementing the provisions of this chapter

19  and taken final action on the filed application under its

20  final adopted rules. Once the division has adopted rules

21  implementing the provisions of this chapter, it shall complete

22  review of any filed application and shall issue a license

23  under s. 551.107 if the licensee meets the requirements of

24  this chapter and rules adopted by the division.

25         (2)(3)  A temporary license issued under this section

26  is nontransferable. Any temporary license issued under this

27  section shall be valid during the pendency of any challenge to

28  the rules.

29         Section 22.  Paragraph (a) of subsection (1) of section

30  551.106, Florida Statutes, is amended to read:

31         551.106  License fee; tax rate; penalties.--

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 1         (1)  LICENSE FEE.--

 2         (a)  Upon submission of the initial application for a

 3  slot machine license and annually thereafter, upon the

 4  anniversary date of the issuance of the initial license

 5  submission of an application for renewal of the slot machine

 6  license, the licensee must pay to the division a nonrefundable

 7  license fee of $3 million for the succeeding 12 months of

 8  licensure. The license fee shall be deposited into the

 9  Pari-mutuel Wagering Trust Fund of the Department of Business

10  and Professional Regulation to be used by the division and the

11  Department of Law Enforcement for investigations, regulation

12  of slot machine gaming, and enforcement of slot machine gaming

13  provisions under this chapter. These payments shall be

14  accounted for separately from taxes or fees paid pursuant to

15  the provisions of chapter 550.

16         Section 23.  Effective January 1, 2008, present

17  subsections (3), (4), and (5) of section 551.106, Florida

18  Statutes, are redesignated as subsections (4), (5), and (6),

19  respectively, and a new subsection (3) is added to that

20  section, to read:

21         551.106  License fee; tax rate; penalties.--

22         (3)  TAX CREDITS ON SLOT MACHINE REVENUES.--Each slot

23  machine licensee shall receive in the current state fiscal

24  year a tax credit equal to the amount paid by the licensee in

25  the previous state fiscal year to the local government

26  according to any slot revenue sharing agreements made with the

27  local government where the slot machine licensee is located.

28  This tax credit shall be applicable against the taxes

29  otherwise due and payable to the state under subsection (2).

30  The total amount of the tax credit may not exceed 3.7 percent

31  

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 1  of the total taxes paid to the division under this section in

 2  the previous state fiscal year.

 3         Section 24.  Subsection (2) and paragraph (b) of

 4  subsection (4) of section 551.107, Florida Statutes, are

 5  amended, and subsections (9), (10), and (11) are added to that

 6  section, to read:

 7         551.107  Slot machine occupational license; findings;

 8  application; fee.--

 9         (2)(a)  The following slot machine occupational

10  licenses shall be issued to persons or entities that, by

11  virtue of the positions they hold, might be granted access to

12  slot machine gaming areas or to any other person or entity in

13  one of the following categories:

14         1.  General occupational licenses for general

15  employees, including food service, maintenance, and other

16  similar service and support employees having access to the

17  slot machine gaming area.

18         2.  Professional occupational licenses for any person,

19  proprietorship, partnership, corporation, or other entity that

20  is authorized by a slot machine licensee to manage, oversee,

21  or otherwise control daily operations as a slot machine

22  manager, a floor supervisor, security personnel, or any other

23  similar position of oversight of gaming operations, or any

24  person who is not an employee of the slot machine licensee and

25  who provides maintenance, repair, or upgrades or otherwise

26  services a slot machine or other slot machine equipment.

27         3.  Business occupational licenses for any slot machine

28  management company or company associated with slot machine

29  gaming, any person who manufactures, distributes, or sells

30  slot machines, slot machine paraphernalia, or other associated

31  equipment to slot machine licensees, any company that sells or

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 1  provides goods or services associated with slot machine gaming

 2  to slot machine licensees, or any person not an employee of

 3  the slot machine licensee who provides maintenance, repair, or

 4  upgrades or otherwise services a slot machine or other slot

 5  machine equipment.

 6         (b)  The division may issue one license to combine

 7  licenses under this section with pari-mutuel occupational

 8  licenses and cardroom licenses pursuant to s. 550.105(2)(d).

 9  The division shall adopt rules pertaining to occupational

10  licenses under this subsection. Such rules may specify, but

11  need not be limited to, requirements and restrictions for

12  licensed occupations and categories, procedures to apply for

13  any license or combination of licenses, disqualifying criminal

14  offenses for a licensed occupation or categories of

15  occupations, and which types of occupational licenses may be

16  combined into single license under this section. The

17  fingerprinting requirements of subsection (7) apply to any

18  combination license that includes slot machine license

19  privileges under this section. The division may not adopt a

20  rule allowing the issuance of an occupational license to any

21  person who does not meet the minimum background qualifications

22  under this section.

23         (b)  Notwithstanding any provision of law to the

24  contrary, a pari-mutuel occupational licensee holding a

25  currently valid pari-mutuel occupational license is eligible

26  to act as a slot machine occupational licensee upon the

27  effective date of this act until such time as rules have been

28  adopted and such pari-mutuel occupational licensee has been

29  provided a reasonable opportunity to comply with the rules.

30         (c)  Slot machine occupational licenses are not

31  transferable.

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 1         (4)

 2         (b)  A slot machine license or combination license is

 3  valid for the same term as a pari-mutuel occupational license

 4  issued pursuant to s. 550.105(1). The division shall

 5  establish, by rule, a schedule for the annual renewal of slot

 6  machine occupational licenses.

 7         (9)  The division may deny, revoke, or suspend any

 8  occupational license if the applicant or holder of the license

 9  accumulates unpaid obligations, defaults in obligations, or

10  issues drafts or checks that are dishonored or for which

11  payment is refused without reasonable cause.

12         (10)  The division may fine or suspend, revoke, or

13  place conditions upon the license of any licensee who provides

14  false information under oath regarding an application for a

15  license or an investigation by the division.

16         (11)  The division may impose a civil fine of up to

17  $5,000 for each violation of this chapter or the rules of the

18  division in addition to or in lieu of any other penalty

19  provided for in this section. The division may adopt a penalty

20  schedule for violations of this chapter or any rule adopted

21  pursuant to this chapter for which it would impose a fine in

22  lieu of a suspension and adopt rules allowing for the issuance

23  of citations, including procedures to address such citations,

24  to persons who violate such rules. In addition to any other

25  penalty provided by law, the division may exclude from all

26  licensed slot machine facilities in this state, for a period

27  not to exceed the period of suspension, revocation, or

28  ineligibility, any person whose occupational license

29  application has been declared ineligible to hold an

30  occupational license, or whose occupational license has been

31  suspended or revoked by the division.

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 1         Section 25.  Subsection (2) of section 551.109, Florida

 2  Statutes, is amended to read:

 3         551.109  Prohibited acts; penalties.--

 4         (2)  Except as otherwise provided by law and in

 5  addition to any other penalty, any person who possesses a slot

 6  machine without the license required by this chapter or who

 7  possesses a slot machine at any location other than at the

 8  slot machine licensee's facility is subject to an

 9  administrative fine or civil penalty of up to $10,000 per

10  machine. The prohibition in this subsection does not apply to:

11         (a)  Slot machine manufacturers or slot machine

12  distributors that hold appropriate licenses issued by the

13  division who are authorized to maintain a slot machine storage

14  and maintenance facility at any location in a county in which

15  slot machine gaming is authorized by this chapter. The

16  division may adopt rules regarding security and access to the

17  storage facility and inspections by the division.

18         (b)  Certified educational facilities that are

19  authorized to maintain slot machines for the sole purpose of

20  education and licensure, if any, of slot machine technicians,

21  inspectors or investigators. The division and the Department

22  of Law Enforcement may possess slot machines for training and

23  testing purposes. The division may adopt rules regarding the

24  regulation of any such slot machines used for educational,

25  training, or testing purposes.

26         Section 26.  Subsection (1) of section 551.114, Florida

27  Statutes, is amended to read:

28         551.114  Slot machine gaming areas.--

29         (1)  A slot machine licensee may make available for

30  play up to 2,500 1,500 slot machines within the property of

31  the facilities of the slot machine licensee.

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 1         Section 27.  Section 551.116, Florida Statutes, is

 2  amended to read:

 3         551.116  Days and hours of operation.--Slot machine

 4  gaming areas may be open daily throughout the year. The slot

 5  machine gaming areas may be open for a maximum of 16 hours per

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

 7  majority vote of the governing body of the municipality where

 8  the slot machine facility is located or the governing body of

 9  the county if the slot machine facility is not located in a

10  municipality.

11         Section 28.  Section 551.121, Florida Statutes, is

12  amended to read:

13         551.121  Prohibited activities and devices;

14  exceptions.--

15         (1)  Complimentary or reduced-cost alcoholic beverages

16  may not be served to persons playing a slot machine. Alcoholic

17  beverages served to persons playing a slot machine shall cost

18  at least the same amount as alcoholic beverages served to the

19  general public at a bar within the facility.

20         (2)  A slot machine licensee may not make any loan,

21  provide credit, or advance cash in order to enable a person to

22  play a slot machine. This subsection shall not prohibit

23  automated ticket redemption machines that dispense cash

24  resulting from the redemption of tickets from being located in

25  the designated slot machine gaming area of the slot machine

26  licensee.

27         (3)  A slot machine licensee may not allow any

28  automated teller machine or similar device designed to provide

29  credit or dispense cash to be located within the designated

30  slot machine gaming areas of a facility of a facilities of the

31  slot machine licensee.

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 1         (4)  A slot machine licensee may not accept or cash any

 2  personal, third-party, corporate, business, or

 3  government-issued check from any person within the designated

 4  slot machine gaming areas of a facility of a slot machine

 5  licensee.

 6         (5)  A slot machine, or the computer operating system

 7  linking the slot machine, may not be linked by any means to

 8  any other slot machine or computer operating system of another

 9  slot machine licensee. A progressive system may not be used in

10  conjunction with slot machines within or between licensed

11  facilities.

12         (6)  A slot machine located within a licensed facility

13  shall accept only tickets or paper currency or an electronic

14  payment system for wagering and return or deliver payouts to

15  the player in the form of tickets that may be exchanged for

16  cash, merchandise, or other items of value. The use of coins,

17  credit or debit cards, tokens, or similar objects is

18  specifically prohibited. However, an electronic credit system

19  may be used for receiving wagers and making payouts.

20         Section 29.  Subsection (2) of section 849.15, Florida

21  Statutes, is amended to read:

22         849.15  Manufacture, sale, possession, etc., of

23  coin-operated devices prohibited.--

24         (2)  Pursuant to section 2 of that chapter of the

25  Congress of the United States entitled "An act to prohibit

26  transportation of gaming devices in interstate and foreign

27  commerce," approved January 2, 1951, being ch. 1194, 64 Stat.

28  1134, and also designated as 15 U.S.C. ss. 1171-1177, the

29  State of Florida, acting by and through the duly elected and

30  qualified members of its Legislature, does hereby in this

31  section, and in accordance with and in compliance with the

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 1  provisions of section 2 of such chapter of Congress, declare

 2  and proclaim that any county of the State of Florida within

 3  which slot machine gaming is authorized pursuant to chapter

 4  551 is exempt from the provisions of section 2 of that chapter

 5  of the Congress of the United States entitled "An act to

 6  prohibit transportation of gaming devices in interstate and

 7  foreign commerce," designated as 15 U.S.C. ss. 1171-1177,

 8  approved January 2, 1951. All shipments of gaming devices,

 9  including slot machines, into any county of this state within

10  which slot machine gaming is authorized pursuant to chapter

11  551 and the registering, recording, and labeling of which have

12  been duly performed by the manufacturer or distributor thereof

13  in accordance with sections 3 and 4 of that chapter of the

14  Congress of the United States entitled "An act to prohibit

15  transportation of gaming devices in interstate and foreign

16  commerce," approved January 2, 1951, being ch. 1194, 64 Stat.

17  1134, and also designated as 15 U.S.C. ss. 1171-1177, shall be

18  deemed legal shipments thereof into this state any such county

19  provided the destination of such shipments is an eligible

20  facility as defined in s. 551.102 or the facility of a slot

21  machine manufacturer or slot machine distributor as provided

22  in s. 551.109(2)(a).

23         Section 30.  For the 2007-2008 fiscal year, the sum of

24  $10 million in recurring funds is appropriated from the

25  Operating Trust Fund in the Department of Lottery and 24

26  full-time equivalent positions and associated salary rate of

27  1,276,000 is authorized to implement the provisions of this

28  act.

29         Section 31.  This act shall take effect upon becoming a

30  law.

31  

                                  33

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






    Florida Senate - 2007             CS for CS for CS for SB 2434
    601-2649-07




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

 3                                 

 4  Revises the definition of "video lottery retailer."

 5  Changes the date by which the Department of Lottery is
    required to have video lottery games in facilities from
 6  October 1, 2007, to January 1, 2008.

 7  Amends the date by which the Department of Lottery is required
    to adopt rules for permitting video lotteries and licensing
 8  video lottery vendors from July 1, 2007, to January 1, 2008,
    and allows the department to adopt emergency rules to
 9  implement said provisions.

10  Provides for an annual, nonrefundable $3 million application
    fee for video lottery retailer applicants, and provides that
11  the funds will be used to support the costs to administer the
    program within the Department of Lottery.
12  
    Changes the date of licensure of video lottery terminal
13  vendors from July 1, 2007, to October 1, 2007.

14  Deletes the provision requiring the Department of Children and
    Family Services to administer a compulsive gambling prevention
15  program.

16  Requires the Department of Lottery to contract for compulsive
    gambling prevention services and for advertising to encourage
17  responsible gaming practices and to publicize a gambling
    telephone help line.
18  
    Adds CS for CS for SB 1038 & 218 as it relates to slot
19  machines.

20  Provides tax credits on slot machine revenues which may not
    exceed 3.7% of the total taxes paid.
21  
    Increases the number of slot machines available per licensee
22  from 1,500 to 2,500.

23  Appropriates $10 million and 24 full time positions to the
    Department of Lottery to administer the provisions of the
24  bill.

25  Makes technical and conforming changes.

26  

27  

28  

29  

30  

31  

                                  34

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