Senate Bill sb0752c2

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    Florida Senate - 2007                     CS for CS for SB 752

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




    593-2580-07

  1                      A bill to be entitled

  2         An act relating to cardrooms; amending s.

  3         849.086, F.S.; defining the term "tournament";

  4         revising the period during which a cardroom may

  5         operate; clarifying awards that a cardroom may

  6         give to certain players; authorizing

  7         tournaments; providing that tournaments must be

  8         played only with tournament chips; requiring

  9         that all players receive an equal number of

10         tournament chips for the entry fee; specifying

11         that tournament chips have no cash value and

12         represent tournament points only; providing

13         that tournament chips may not be redeemed for

14         cash or any other thing of value; providing

15         that the distribution of prizes and cash awards

16         is determined by the cardroom operator before

17         entry fees are accepted; deleting a provision

18         providing for an apportionment of moneys

19         received from admission tax and gross receipts

20         tax between the Pari-mutuel Wagering Trust Fund

21         and the General Revenue Fund; revising the

22         portion of moneys deposited into the

23         Pari-mutuel Wagering Trust Fund which is

24         subsequently distributed to counties in which

25         cardrooms are located; requiring that one-half

26         of the moneys deposited into the Pari-mutuel

27         Wagering Trust Fund be transferred to the

28         Grants and Donations Trust Fund before a

29         specified deadline for the purpose of funding

30         programs established by the Transition Service

31         Integration Model Grant Program; establishing

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 1         the Transition Service Integration Model

 2         Project Grant Program within the Department of

 3         Education; providing purposes of the program;

 4         specifying the type of student for whom the

 5         program is intended; defining the term

 6         "developmental disability"; providing for the

 7         administration of grants; requiring the project

 8         to fund staff development and an ongoing

 9         third-party evaluation of results; requiring

10         that the Division of Vocational Rehabilitation

11         and the Agency for Persons with Disabilities

12         provide support to the program; requiring that

13         grants be awarded through a competitive

14         process; limiting the use of grants to certain

15         contractual agreements; requiring that all

16         applicants use the Transition Service

17         Integration Model; providing requirements for

18         eligibility for a grant; requiring that

19         applicants provide a statement of how they plan

20         to sustain or expand the program after the end

21         of the grant period; specifying a grant period;

22         specifying an approximate number of students to

23         participate in the program; specifying a number

24         of district pilot sites that will participate

25         in the program; authorizing additional

26         positions and providing an appropriation;

27         providing for severability; providing an

28         effective date.

29  

30  

31  

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 1         WHEREAS, cardroom operations of pari-mutuel facilities

 2  offer an opportunity to the State of Florida to raise

 3  much-needed revenues for underserved program areas, and

 4         WHEREAS, vocational education is a component that is

 5  critical to providing an adequate and effective workforce in

 6  this state, and

 7         WHEREAS, persons with disabilities represent a portion

 8  of our population whose employment horizons are not being

 9  maximized under current programs, and

10         WHEREAS, revenues raised from cardroom operations at

11  pari-mutuel facilities can provide the source of funding

12  needed for new programs to assist persons with disabilities

13  and provide at-risk juveniles with an opportunity for training

14  and vocational education so that they may become productive

15  members of Florida's workforce, NOW, THEREFORE,

16  

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

18  

19         Section 1.  Subsections (2), (7), and (8), and

20  paragraphs (c) and (h) of subsection (13) of section 849.086,

21  Florida Statutes, are amended to read:

22         849.086  Cardrooms authorized.--

23         (2)  DEFINITIONS.--As used in this section:

24         (a)  "Authorized game" means a game or series of games

25  of poker which are played in a nonbanking manner.

26         (b)  "Banking game" means a game in which the house is

27  a participant in the game, taking on players, paying winners,

28  and collecting from losers or in which the cardroom

29  establishes a bank against which participants play.

30         (c)  "Cardroom" means a facility where authorized card

31  games are played for money or anything of value and to which

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 1  the public is invited to participate in such games and charged

 2  a fee for participation by the operator of such facility.

 3  Authorized games and cardrooms do not constitute casino gaming

 4  operations.

 5         (d)  "Cardroom management company" means any individual

 6  not an employee of the cardroom operator, any proprietorship,

 7  partnership, corporation, or other entity that enters into an

 8  agreement with a cardroom operator to manage, operate, or

 9  otherwise control the daily operation of a cardroom.

10         (e)  "Cardroom distributor" means any business that

11  distributes cardroom paraphernalia such as card tables,

12  betting chips, chip holders, drop boxes, banking supplies,

13  playing cards, card shufflers, and other associated equipment

14  to authorized cardrooms.

15         (f)  "Cardroom operator" means a licensed pari-mutuel

16  permitholder which holds a valid permit and license issued by

17  the division pursuant to chapter 550 and which also holds a

18  valid cardroom license issued by the division pursuant to this

19  section which authorizes such person to operate a cardroom and

20  to conduct authorized games in such cardroom.

21         (g)  "Division" means the Division of Pari-mutuel

22  Wagering of the Department of Business and Professional

23  Regulation.

24         (h)  "Gross receipts" means the total amount of money

25  received by a cardroom from any person for participation in

26  authorized games.

27         (i)  "House" means the cardroom operator and all

28  employees of the cardroom operator.

29         (j)  "Net proceeds" means the total amount of gross

30  receipts received by a cardroom operator from cardroom

31  operations less direct operating expenses related to cardroom

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 1  operations, including labor costs, admission taxes only if a

 2  separate admission fee is charged for entry to the cardroom

 3  facility, gross receipts taxes imposed on cardroom operators

 4  by this section, the annual cardroom license fees imposed by

 5  this section on each table operated at a cardroom, and

 6  reasonable promotional costs excluding officer and director

 7  compensation, interest on capital debt, legal fees, real

 8  estate taxes, bad debts, contributions or donations, or

 9  overhead and depreciation expenses not directly related to the

10  operation of the cardrooms.

11         (k)  "Rake" means a set fee or percentage of the pot

12  assessed by a cardroom operator for providing the services of

13  a dealer, table, or location for playing the authorized game.

14         (l)  "Tournament" means a series of games that have

15  more than one betting round involving one or more tables,

16  where the winners or others receive a prize or cash award.

17         (7)  CONDITIONS FOR OPERATING A CARDROOM.--

18         (a)  A cardroom may be operated only at the location

19  specified on the cardroom license issued by the division, and

20  such location may only be the location at which the

21  pari-mutuel permitholder is authorized to conduct pari-mutuel

22  wagering activities pursuant to such permitholder's valid

23  pari-mutuel permit or as otherwise authorized by law.

24         (b)  A cardroom may be operated at the facility between

25  the hours of 10 a.m. and 2 a.m. only on days when the facility

26  is authorized to accept wagers on pari-mutuel events except

27  that the hours of operation may be extended by majority vote

28  of the governing body of the municipality where the facility

29  is located or the governing body of the county if the facility

30  is not located in a municipality during its authorized meet. A

31  cardroom may operate between the hours of 12 noon and 12

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 1  midnight on any day a pari-mutuel event is conducted live as a

 2  part of its authorized meet. However, a permitholder who holds

 3  a valid cardroom license may operate a cardroom between the

 4  hours of 12 noon and 12 midnight on any day that live racing

 5  of the same class of permit is occurring within 35 miles of

 6  its facility if no other holder of that same class of permit

 7  within 35 miles is operating a cardroom at such time and if

 8  all holders of the same class of permit within the 35-mile

 9  area have given their permission in writing to the

10  permitholder to operate the cardroom during the designated

11  period. Application to operate a cardroom under this paragraph

12  must be made to the division as part of the annual license

13  application.

14         (c)  A cardroom operator must at all times employ and

15  provide a nonplaying dealer for each table on which authorized

16  card games which traditionally utilize a dealer are conducted

17  at the cardroom. Such dealers may not have any participatory

18  interest in any game other than the dealing of cards and may

19  not have an interest in the outcome of the game. The providing

20  of such dealers by a licensee shall not be construed as

21  constituting the conducting of a banking game by the cardroom

22  operator.

23         (d)  A cardroom operator may award giveaways, jackpots,

24  and prizes to a player or players who hold certain

25  combinations of cards specified by the cardroom operator.

26         (e)(d)  Each cardroom operator shall conspicuously post

27  upon the premises of the cardroom a notice which contains a

28  copy of the cardroom license; a list of authorized games

29  offered by the cardroom; the wagering limits imposed by the

30  house, if any; any additional house rules regarding operation

31  of the cardroom or the playing of any game; and all costs to

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    Florida Senate - 2007                     CS for CS for SB 752
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 1  players to participate, including any rake by the house. In

 2  addition, each cardroom operator shall post at each table a

 3  notice of the minimum and maximum bets authorized at such

 4  table and the fee for participation in the game conducted.

 5         (f)(e)  The cardroom facility shall be subject to

 6  inspection by the division or any law enforcement agency

 7  during the licensee's regular business hours. The inspection

 8  will specifically encompass the permitholder internal control

 9  procedures approved by the division.

10         (g)(f)  A cardroom operator may refuse entry to or

11  refuse to allow to play any person who is objectionable,

12  undesirable, or disruptive, but such refusal shall not be on

13  the basis of race, creed, color, religion, sex, national

14  origin, marital status, physical handicap, or age, except as

15  provided in this section.

16         (8)  METHOD OF WAGERS; LIMITATION.--

17         (a)  No wagering may be conducted using money or other

18  negotiable currency. Games may only be played utilizing a

19  wagering system whereby all players' money is first converted

20  by the house to tokens or chips which shall be used for

21  wagering only at that specific cardroom.

22         (b)  The cardroom operator may limit the amount wagered

23  in any game or series of games, but the maximum bet may not

24  exceed $10 $2 in value. There may not be more than three

25  raises in any round of betting. The fee charged by the

26  cardroom for participation in the game shall not be included

27  in the calculation of the limitation on the bet amount

28  provided in this paragraph.

29         (c)  A tournament shall consist of a series of games.

30  The entry fee for a tournament, including any re-buys, may not

31  exceed the maximum amount that could be wagered by a

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    Florida Senate - 2007                     CS for CS for SB 752
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 1  participant in 10 like-kind, nontournament games under

 2  paragraph (b). Tournaments must be played only with tournament

 3  chips that are provided to all participants in exchange for an

 4  entry fee and any subsequent re-buys. All players must receive

 5  an equal number of tournament chips for their entry fee.

 6  Tournament chips have no cash value and represent tournament

 7  points only. There is no limitation on the number of

 8  tournament chips that may be used for a bet except as

 9  otherwise determined by the cardroom operator. Tournament

10  chips may never be redeemed for cash or for any other thing of

11  value. The distribution of prizes and cash awards is

12  determined by the cardroom operator before entry fees are

13  accepted.

14         (d)  For purposes of tournament play only, the term

15  "gross receipts for the tournament" means the total amount

16  received by the cardroom operator for all entry fees, player

17  re-buys, and fees for participation in the tournament less the

18  total amount paid to the winners or others as prizes.

19         (13)  TAXES AND OTHER PAYMENTS.--

20         (c)  Payment of the admission tax and gross receipts

21  tax imposed by this section shall be paid to the division. The

22  division shall deposit these sums with the Chief Financial

23  Officer, one-half being credited to the Pari-mutuel Wagering

24  Trust Fund and one-half being credited to the General Revenue

25  Fund. The cardroom licensee shall remit to the division

26  payment for the admission tax, the gross receipts tax, and the

27  licensee fees. Such payments shall be remitted to the division

28  on the fifth day of each calendar month for taxes and fees

29  imposed for the preceding month's cardroom activities.

30  Licensees shall file a report under oath by the fifth day of

31  each calendar month for all taxes remitted during the

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    Florida Senate - 2007                     CS for CS for SB 752
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 1  preceding calendar month. Such report shall, under oath,

 2  indicate the total of all admissions, the cardroom activities

 3  for the preceding calendar month, and such other information

 4  as may be prescribed by the division.

 5         (h)1.  One-sixteenth One-quarter of the moneys

 6  deposited into the Pari-mutuel Wagering Trust Fund pursuant to

 7  paragraph (g) shall, by October 1 of each year, be distributed

 8  to counties in which the cardrooms are located; however, if

 9  two or more pari-mutuel racetracks are located within the same

10  incorporated municipality, the cardroom funds shall be

11  distributed to the municipality.  If a pari-mutuel facility is

12  situated in such a manner that it is located in more than one

13  county, the site of the cardroom facility shall determine the

14  location for purposes of disbursement of tax revenues under

15  this paragraph. The division shall, by September 1 of each

16  year, determine:  the amount of taxes deposited into the

17  Pari-mutuel Wagering Trust Fund pursuant to this section from

18  each cardroom licensee; the location by county of each

19  cardroom; whether the cardroom is located in the

20  unincorporated area of the county or within an incorporated

21  municipality; and, the total amount to be distributed to each

22  eligible county and municipality.

23         2.  One half of the moneys deposited into the

24  Pari-mutuel Wagering Trust Fund pursuant to paragraph (g)

25  shall be transferred to the Grants and Donations Trust Fund

26  established by s. 215.32(2)(d) on or before October 1 of each

27  year for the purpose of funding programs established by the

28  Transition Service Integration Model Project Grant Program.

29         Section 2.  Transition Service Integration Model

30  Project Grant Program.--

31  

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 1         (1)  The Transition Service Integration Model Project

 2  Grant Program is established within the Department of

 3  Education to provide startup grants to offset the cost of

 4  formal service agreements between district school boards and

 5  not-for-profit employment services providers for the purpose

 6  of providing a seamless transition, through customized

 7  employment, for students with severe disabilities who are

 8  eligible for developmental disability services. The program

 9  shall assist students in moving from school to integrated

10  direct-hire employment and postsecondary education and shall

11  provide inclusive access to a wide range of preferred

12  community activities and settings.

13         (2)  As used in this section, the term "developmental

14  disability" has the same meaning as in s. 393.063(9), Florida

15  Statutes.

16         (3)  In addition, the project shall fund staff

17  development required to support the project and a third-party

18  evaluation of results for the duration of the project. The

19  Bureau of Exceptional Education and Student Services shall

20  administer the grants. The Division of Vocational

21  Rehabilitation and the Agency for Persons with Disabilities

22  shall provide leadership to their field offices in support of

23  collaborative efforts with local school districts and provide

24  training in the area of customized employment.

25         (4)  A school district may apply to the Bureau of

26  Exceptional Education and Student Services for a grant. Grants

27  must be provided through a competitive process and may be used

28  only for contractual agreements between district school boards

29  and employment services providers to provide customized

30  employment for the student population described in subsection

31  (1).

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 1         (5)  To be eligible for funding, applicants must use

 2  the Transition Service Integration Model. Specifically,

 3  applicants must:

 4         (a)  Create programs that are designed to provide for

 5  the seamless transition of the student population from school

 6  to integrated direct-hire employment and postsecondary

 7  education and provide inclusive access to a wide range of

 8  preferred community activities and settings;

 9         (b)  Enter into a formal service arrangement with a

10  not-for-profit agency that agrees to work with pending

11  graduates before and after graduation and that is used as a

12  provider by both the rehabilitation and developmental

13  disability systems;

14         (c)  Dedicate staff members to share responsibility for

15  developing preferred work-related and outside activities for

16  their pending graduates with the not-for-profit agency;

17         (d)  Demonstrate partnerships and collaborative

18  relationships with the rehabilitation system, the

19  developmental disability system, postsecondary institutions,

20  families, advocacy groups of the student population, and local

21  workforce One-Stops;

22         (e)  Specify locations outside high school campuses at

23  which the program will be housed and determine how instruction

24  will take place in natural community settings in which the

25  skills being acquired are functional;

26         (f)  Ensure representation from a student with a

27  disability and a family member of a student with a disability

28  in program planning;

29         (g)  Commit to customized employment and training in

30  the Transition Service Integration Model for staff members of

31  

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 1  the district, the nonprofit agency, the rehabilitation system,

 2  and the developmental disability system;

 3         (h)  Specify measurable goals and objectives; and

 4         (i)  Submit to a third-party evaluation for the

 5  duration of the project.

 6         (5)  Applicants must specify how they will sustain and

 7  expand the program after the grant period has ended.

 8         (6)  Each grant shall be implemented to the extent

 9  funded over a period of 4 years. The program shall be directed

10  towards approximately 200 students each year in no more than

11  10 district pilot sites.

12         (7)  From funds allocated pursuant to s.

13  849.086(13)(h)2., the Bureau of Contract Grants and

14  Procurement shall annually distribute half of these funds to

15  providers who specialize in the postsecondary vocational

16  training of at-risk students and students with disabilities.

17  In order to qualify for these funds, a provider must be

18  licensed and have a demonstrated ability to:

19         (a)  Provide postsecondary vocational training programs

20  for male and female juveniles placed in a residential

21  commitment facility designated by the Department of Juvenile

22  Justice; and

23         (b)  Provide vocational training to juveniles in a

24  program certified pursuant to s. 985.19.

25  

26  Any provider must be able to provide participating juveniles

27  with occupational completion points.

28         Section 3.  For the 2007-2008 fiscal year, seven

29  full-time equivalent positions and 240,542 in associated

30  salary rate are authorized, and the sums of $401,743 in

31  recurring funds and $92,589 in nonrecurring funds from the

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

 2  and Professional Regulation are hereby appropriated for the

 3  purpose of carrying out activities related to this act.

 4         Section 4.  If any provision of this act or its

 5  application to any individual or circumstance is held invalid,

 6  the invalidity does not affect other provisions or

 7  applications of this act which can be given effect without the

 8  invalid provision or application, and to this end the

 9  provisions of this act are severable.

10         Section 5.  This act shall take effect July 1, 2007.

11  

12          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
13                            CS/SB 752

14                                 

15  The Committee Substitute made the following changes to CS/SB
    752:
16  
    1.   Removed from the bill, all of the references to
17       electronic poker tables.

18  2.   Establishes the Transition Service Integration Model
         Project Grant Program. The purpose of the program is to
19       enable students with developmental disabilities the
         opportunity to transition seamlessly from school to work
20       or post-secondary education without an interruption in
         services.
21  
    3.   Changing the disposition of the admission tax and gross
22       receipts tax on cardroom operators, from one half being
         credited to the Pari-mutuel Wagering Trust Fund and one
23       half being credited to the General Revenue Fund, to 100
         percent being deposited to the Pari-mutuel Wagering Trust
24       Fund

25  4.   Requires that one half of these moneys deposited into the
         Pari-mutual Wagering Trust Fund from these funds be
26       transferred to the Grants and Donations  Trust Fund on or
         before October 1 of each year for the purpose of funding
27       programs established by the Transition Service
         Integration Model Project Grant Program.
28  
    5.   For the fiscal year 2007-2008, seven full-time equivalent
29       positions and 240,542 in associated salary rate are
         authorized, and the sum of $401,743 in recurring funds
30       and $92,589 in nonrecurring funds from the Pari-mutuel
         Wagering Trust Fund are appropriated to carry out the
31       provisions of the bill.

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