Senate Bill sb0752c3

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    Florida Senate - 2007  CS for CS for CS for SB 752 & CS for SB

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


    601-2651-07

  1                      A bill to be entitled

  2         An act relating to cardrooms; amending s.

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

  4         clarifying that provisions authorizing

  5         cardrooms do not authorize video poker or

  6         certain other games or machines; revising

  7         license fees; revising hours of operation;

  8         authorizing the award of certain prizes;

  9         revising betting limits; authorizing

10         tournaments; providing tournament requirements;

11         providing an appropriation and authorizing

12         additional positions; providing an effective

13         date.

14  

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

16  

17         Section 1.  Paragraph (l) is added to subsection (2) of

18  section 849.086, Florida Statutes, and subsections (3) and

19  (4), paragraph (d) of subsection (5), subsections (7) and (8),

20  paragraph (h) of subsection (13), and subsection (16) of that

21  section are amended, to read:

22         849.086  Cardrooms authorized.--

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

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

25  more than one betting round involving one or more tables and

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

27         (3)  CARDROOM AUTHORIZED.--Notwithstanding any other

28  provision of law, it is not a crime for a person to

29  participate in an authorized game at a licensed cardroom or to

30  operate a cardroom described in this section if such game and

31  cardroom operation are conducted strictly in accordance with

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    Florida Senate - 2007  CS for CS for CS for SB 752 & CS for SB

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    601-2651-07


 1  the provisions of this section. This section does not

 2  authorize video poker games or any other game or machine that

 3  is not authorized by state law or that is authorized at a slot

 4  machine facility licensed under chapter 551.

 5         (4)  AUTHORITY OF DIVISION.--The Division of

 6  Pari-mutuel Wagering of the Department of Business and

 7  Professional Regulation shall administer this section and

 8  regulate the operation of cardrooms under this section and the

 9  rules adopted under this section pursuant thereto, and may is

10  hereby authorized to:

11         (a)  Adopt rules, including, but not limited to: the

12  issuance of cardroom and employee licenses for cardroom

13  operations; the operation of a cardroom; recordkeeping and

14  reporting requirements; and the collection of all fees and

15  taxes imposed by this section.

16         (b)  Conduct investigations and monitor the operation

17  of cardrooms and the playing of authorized games therein.

18         (c)  Review the books, accounts, and records of any

19  current or former cardroom operator.

20         (d)  Suspend or revoke any license or permit, after

21  hearing, for any violation of the provisions of this section

22  or adopted the administrative rules adopted pursuant thereto.

23         (e)  Take testimony, issue summons and subpoenas for

24  any witness, and issue subpoenas duces tecum in connection

25  with any matter within its jurisdiction.

26         (f)  Monitor and ensure the proper collection of taxes

27  and fees imposed by this section. Permitholder internal

28  controls are mandated to ensure that there is no compromise of

29  state funds. To that end, a roaming division auditor shall

30  will monitor and verify the cash flow and accounting of

31  cardroom revenue on for any given operating day.

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 1         (5)  LICENSE REQUIRED; APPLICATION; FEES.--No person

 2  may operate a cardroom in this state unless such person holds

 3  a valid cardroom license issued pursuant to this section.

 4         (d)  The annual cardroom license fee for each facility

 5  shall be $1,000 for the first table and $500 for each

 6  additional table to be operated at the cardroom. The This

 7  license fee shall be deposited by the division with the Chief

 8  Financial Officer to the credit of the Pari-mutuel Wagering

 9  Trust Fund.

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

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

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

13  such location may only be the location at which the

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

15  wagering activities pursuant to such permitholder's valid

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

17         (b)  Any horserace, greyhound, or jai alai permitholder

18  licensed under this chapter may operate a cardroom at its

19  pari-mutuel facility between the hours of 10 a.m. and 2 a.m.

20  if the permitholder meets the requirements of paragraph

21  (5)(b). The hours of operation may be extended by majority

22  vote of the governing body of the municipality where the

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

24  facility is not located in a municipality. A permitholder may

25  amend the license issued to the permitholder within 60 days

26  after July 1, 2007. A cardroom may be operated at the facility

27  only when the facility is authorized to accept wagers on

28  pari-mutuel events during its authorized meet. A cardroom may

29  operate between the hours of 12 noon and 12 midnight on any

30  day a pari-mutuel event is conducted live as a part of its

31  authorized meet. However, a permitholder who holds a valid

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    Florida Senate - 2007  CS for CS for CS for SB 752 & CS for SB

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    601-2651-07


 1  cardroom license may operate a cardroom between the hours of

 2  12 noon and 12 midnight on any day that live racing of the

 3  same class of permit is occurring within 35 miles of its

 4  facility if no other holder of that same class of permit

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

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

 7  area have given their permission in writing to the

 8  permitholder to operate the cardroom during the designated

 9  period. Application to operate a cardroom under this paragraph

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

11  application.

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

13  provide a nonplaying dealer for each table on which authorized

14  card games which traditionally use utilize a dealer are

15  conducted at the cardroom. Such dealers may not have a any

16  participatory interest in any game other than the dealing of

17  cards and may not have an interest in the outcome of the game.

18  The providing of such dealers by a licensee does shall not

19  constitute be construed as constituting the conducting of a

20  banking game by the cardroom operator.

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

22  and prizes to a player who holds certain combinations of cards

23  specified by the cardroom operator.

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

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

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

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

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

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

30  players to participate, including any rake by the house. In

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

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    Florida Senate - 2007  CS for CS for CS for SB 752 & CS for SB

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 1  notice of the minimum and maximum bets authorized at such

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

 3         (f)(e)  The cardroom facility is shall be subject to

 4  inspection by the division or any law enforcement agency

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

 6  must will specifically include encompass the permitholder

 7  internal control procedures approved by the division.

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

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

10  undesirable, or disruptive to play, but such refusal may shall

11  not be on the basis of race, creed, color, religion, gender

12  sex, national origin, marital status, physical handicap, or

13  age, except as provided in this section.

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

15         (a)  No Wagering may not be conducted using money or

16  other negotiable currency. Games may only be played using

17  utilizing a wagering system where whereby all players' money

18  is first converted by the house to tokens or chips that may

19  which shall be used only for wagering only at that specific

20  cardroom.

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

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

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

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

25  cardroom for participation in the game may shall not be

26  included in the calculation of the limitation on the bet

27  amount provided in this paragraph. However, a cardroom

28  operator may conduct games of Texas Hold-em without a betting

29  limit if the required player buy-in is no more than $100.

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

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

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    Florida Senate - 2007  CS for CS for CS for SB 752 & CS for SB

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    601-2651-07


 1  exceed the maximum amount that could be wagered by a

 2  participant in 10 like-kind, nontournament games under

 3  paragraph (b). Tournaments may be played only with tournament

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

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

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

 7  Tournament chips have no cash value and represent tournament

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

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

10  otherwise determined by the cardroom operator. Tournament

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

12  value. The distribution of prizes and cash awards must be

13  determined by the cardroom operator before entry fees are

14  accepted. For purposes of tournament play only, the term

15  "gross receipts" means the total amount received by the

16  cardroom operator for all entry fees, player re-buys, and fees

17  for participating in the tournament less the total amount paid

18  to the winners or others as prizes.

19         (13)  TAXES AND OTHER PAYMENTS.--

20         (h)  One-quarter of the moneys deposited into the

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

22  shall, by October 1 of each year, be distributed to the local

23  government that approved the cardroom under subsection (16)

24  counties in which the cardrooms are located; however, if two

25  or more pari-mutuel racetracks are located within the same

26  incorporated municipality, the cardroom funds shall be

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

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

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

30  location for purposes of disbursement of tax revenues under

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

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    Florida Senate - 2007  CS for CS for CS for SB 752 & CS for SB

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

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

 3  each cardroom licensee; the location by county of each

 4  cardroom; whether the cardroom is located in the

 5  unincorporated area of the county or within an incorporated

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

 7  eligible county and municipality.

 8         (16)  LOCAL GOVERNMENT COUNTY COMMISSION APPROVAL.--The

 9  Division of Pari-mutuel Wagering shall not issue any initial

10  license under this section except upon proof in such form as

11  the division may prescribe that the local government where the

12  applicant for such license desires to conduct cardroom gaming

13  has voted to approve such activity by a majority vote of the

14  governing body of the municipality or the governing body of

15  the county if the facility is not located in a municipality a

16  majority of the county commissioners in the county where the

17  applicant for such license desires to conduct cardroom gaming

18  has voted to approve such activity within the county.

19         Section 2.  For the 2007-2008 fiscal year, four

20  full-time equivalent positions and 138,949 in associated

21  salary rate are authorized, and the sums of $230,722 in

22  recurring funds and $48,411 in nonrecurring funds are

23  appropriated from the Pari-mutuel Wagering Trust Fund of the

24  Department of Business and Professional Regulation for the

25  purpose of carrying out activities related to this act.

26         Section 3.  This act shall take effect July 1, 2007.

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    Florida Senate - 2007  CS for CS for CS for SB 752 & CS for SB

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    601-2651-07


 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
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    The bill amends s. 849.086(13)(h), F.S., to provide that the
 5  city or county that grants the approval for the initial
    cardroom license will receive the designated funds from the
 6  Pari-mutuel Wagering Trust Fund.

 7  The bill amends s. 849.086(16), F.S., to require approval by a
    majority vote of either the municipality or the county where
 8  the proposed cardroom is seeking location.

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