Florida Senate - 2008 CS for SB 1380
By the Committee on Regulated Industries; and Senators Jones and King
580-04013A-08 20081380c1
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A bill to be entitled
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An act relating to electronic gaming machines; authorizing
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electronic gaming machines in certain pari-mutuel
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facilities; providing definitions; providing powers and
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duties of the Division of Pari-mutuel Wagering of the
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Department of Business and Professional Regulation and the
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Department of Law Enforcement; providing for rules;
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providing for licenses to conduct electronic gaming;
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providing for temporary licenses; providing for renewal of
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electronic gaming machine licenses; providing for license
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fees; providing for taxes; providing penalties; providing
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for occupational licenses; providing findings; providing
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for applications; providing for a fee; prohibiting certain
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relationships; prohibiting certain acts; providing
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penalties; providing for legality of electronic gaming
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machines; providing for exclusion of certain persons from
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the facilities; prohibiting persons under 21 years of age
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from operating electronic gaming machines; providing for
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electronic gaming machine areas within licensed gaming
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locations; providing for days and hours of operation of
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eligible facilities; providing for a compulsive-gambling-
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prevention program; providing penalties; providing for a
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caterer's license for food service at gambling
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establishments; prohibiting certain activities and
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devices; providing exceptions; providing for rules;
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providing for regulatory preemption to the state;
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amending s. 215.22, F.S.; exempting taxes imposed on
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electronic gaming and electronic gaming machine revenue
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from specified service charges; amending s. 550.002, F.S.;
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providing for 100 live games at eligible jai alai
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facilities; amending s. 849.15, F.S.; providing for
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transportation of electronic gaming devices in accordance
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with federal law; amending s. 895.02, F.S.; providing that
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specified violations related to electronic gaming and
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electronic gaming machines constitute racketeering
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activity; providing that certain debt incurred in
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violation of specified provisions relating to electronic
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gaming and electronic gaming machines constitutes unlawful
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debt; authorizing additional positions and providing
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appropriations; providing for the use of certain
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unreserved funds in the Pari-mutuel Wagering Trust Fund;
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providing for repayment of such funds; providing an
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effective date.
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Be It Enacted by the Legislature of the State of Florida:
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Section 1. Electronic gaming machines authorized.--An
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electronic gaming machine licensee may possess electronic gaming
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machines and operate electronic gaming machines at an eligible
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facility, as defined by this act, where the licensee is
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authorized to conduct pari-mutuel wagering activities pursuant to
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chapter 550, Florida Statutes. Notwithstanding any other
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provision of law, it is not a crime for a person to participate
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in electronic gaming at a facility licensed to possess electronic
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gaming machines or to operate electronic gaming machines as
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described in this act.
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Section 2. Definitions.--As used in this act, the term:
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(1) "Bingo or game of bingo" means bingo as defined in s.
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849.0931(1), Florida Statutes, whether or not electronic,
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computer, or other technological aids are used in connection with
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the game of bingo. Such aids may include the use of entertainment
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displays, including spinning reels, video displays, associated
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bonus displays, and video poker. In order for a game of bingo to
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take place, at least two live players must be competing for a
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common prize. As such, player gaming machines that contain the
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game of bingo may not be house-banked games and may not be
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electronic or electromechanical facsimiles of any game of chance.
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Bingo consists of players competing against other players for
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prizes resulting from a random draw or electronic determination
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and release or announcement of numbers or other designations
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necessary to form the pre-designated game-winning pattern on an
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electronic bingo card. A game ends when a participating player
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receives a pre-designated game-winning pattern and consolation
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prizes, if any, are awarded.
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(2) "Bonus prize" means a prize awarded in a bingo game in
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addition to the game-winning prize. The bonus prize may be based
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on different pre-designated and pre-announced patterns from the
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game-winning pattern, on achieving a winning pattern in a
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specified quantity of numbers or designations drawn or
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electronically determined and released, or on any combination of
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these conditions. A bonus prize may be awarded as an interim
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prize while players are competing for the game-winning prize or
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as a consolation prize after a player has won the game-winning
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prize.
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(3) "Designated electronic gaming machine area" means any
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area of a facility of an electronic gaming machine licensee in
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which electronic gaming may be conducted in accordance with this
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act.
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(4) "Distributor" means any person who sells, leases,
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offers, or otherwise provides, distributes, or services any
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electronic gaming machine or associated equipment, software, or
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other functions required for use or play of electronic gaming
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machines in this state. A manufacturer may be a distributor
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within the state.
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(5) "Division" means the Division of Pari-mutuel Wagering
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of the Department of Business and Professional Regulation.
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(6) "Electronic game" means an electronically simulated
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bingo game played on an electronic gaming machine that, upon
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insertion of a ticket, or an electronic or account-based card, is
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available to play or simulate a game of bingo played on a network
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of electronic gaming machines. An electronic game may not be
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brought into this state until it has been tested and certified by
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a licensed testing laboratory and certified for play in this
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state. Electronic games simulating the game of bingo may not be
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house-banked. Bonus prizes and progressive prizes may be awarded
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to players at any licensed facility, and a player may receive a
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payoff in the form of tickets or electronic or account-based
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credits that may be exchanged for cash, merchandise, or other
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items of value.
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(7) "Electronic gaming machine" means a player station,
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machine, or device, including associated equipment that is
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required to operate the player station, machine, or device, upon
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which an electronic game is played or operated. An electronic
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gaming machine may use spinning reels, video displays, video
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poker, or other similar technologies available now or in the
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future to convey outcomes to a player if the results displayed at
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the gaming machine are based upon simulated bingo game play, as
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approved by the department. No electronic game shall enter the
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state until it has been tested and certified by a licensed
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testing laboratory, and certified for play in the state. An
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electronic gaming machine must display one or more bingo cards to
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be used in the game before numbers or other designations for the
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game are randomly drawn. Any card in use by a player must be
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visible to the player during game play. All electronic gaming
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machines must be directly linked to a central computer for
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purposes of security, monitoring, and auditing. The central
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computer may not limit a facility's ability to deploy its
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electronic player tracking or electronic gaming accounting
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system. However, such systems must use a widely accepted open
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communications protocol to ensure interoperability among all
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manufacturers and to provide a player with the ability to
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seamlessly alternate play between the electronic gaming machines
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and electronic gaming machines of different licensed
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manufacturers. An electronic gaming machine is not a coin-
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operated amusement machine as defined in s. 212.02, Florida
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Statutes, or an amusement game or machine as described in s.
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849.161, Florida Statutes, and electronic gaming machines are not
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subject to the tax imposed by s. 212.05(1)(h), Florida Statutes.
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(8) "Electronic gaming machine facility" means an eligible
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facility at which electronic gaming machines as defined in this
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act are lawfully offered for play.
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(9) "Electronic gaming machine license" means a license
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issued by the division authorizing a licensee under chapter 550,
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Florida Statutes, to place and operate electronic gaming machines
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in an eligible facility.
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(10) "Electronic gaming machine revenues" means all cash
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and property, except nonredeemable credits, received by the
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electronic gaming machine licensee from the operation of
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electronic gaming machines, less the amount of cash, cash
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equivalents, credits, and prizes paid to winners of electronic
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games.
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(11) "Eligible facility" means any facility at which a
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licensee under chapter 550, Florida Statutes, conducted, during
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calendar year 2007, a full schedule of live racing or games, as
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defined in s. 550.002(11), Florida Statutes, including races or
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games under s. 550.475, Florida Statutes, or was authorized to
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conduct limited intertrack wagering under s. 550.6308, Florida
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Statutes, and which is not a slot machine facility licensed under
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chapter 551, Florida Statutes. A pari-mutuel facility may become
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an eligible facility if it meets the requirements of this
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subsection for the preceding 3 consecutive calendar years prior
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to submitting an application for a license to conduct electronic
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gaming.
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(12) "Game-winning pattern" means a predetermined pattern
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on an electronic bingo card. Each game must have one game-winning
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pattern or arrangement that must be common to all players and may
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be won by multiple players simultaneously. A game-winning prize
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must be awarded in every game. The pattern designated as the
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game-winning pattern need not pay the highest prize available in
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the game. Other patterns may be designated for the award of bonus
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prizes in addition to the prize to be awarded based on the game-
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winning pattern.
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(13) "Manufacturer" means any person who manufactures,
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builds, rebuilds, fabricates, assembles, produces, programs,
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designs, or modifies any electronic gaming machine or associated
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equipment for use or play in this state for gaming purposes. A
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manufacturer may be a distributor within the state.
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(14) "Nonredeemable credits" means electronic gaming
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machine operating credits that cannot be redeemed for cash or any
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other thing of value by an electronic gaming machine, kiosk, or
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the electronic gaming machine licensee and that are provided free
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to patrons. Such credits are not nonredeemable credits until they
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are metered as credit into an electronic gaming machine and
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recorded in the facility-based monitoring system.
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(15) "Progressive prize" means an established prize for a
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bingo game, funded by a percentage of each player's purchase or
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wager within one or more licensed facilities for a specific
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progressive bingo game, which is awarded to a player for
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obtaining a specific pre-designated and pre-announced pattern
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having a specified quantity of numbers or designations randomly
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drawn and released or electronically determined or randomly drawn
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and released or electronically determined in a specified
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sequence. The progressive prize must be rolled over to each
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subsequent specific progressive bingo game until it is won.
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Section 3. Powers and duties of the division and the
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Department of Law Enforcement.?-
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(1) The division shall adopt, pursuant to ss. 120.536(1)
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and 120.54, Florida Statutes, rules necessary to implement,
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administer, and regulate the operation of electronic gaming
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machines in this state. The rules must include:
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(a) Procedures for applying for and renewing electronic
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gaming machine licenses.
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(b) Technical requirements and qualifications to receive an
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electronic gaming machine license or electronic gaming machine
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occupational license.
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(c) Procedures to ensure that no electronic game or
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electronic gaming machine shall enter the state and be offered
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for play until it has been tested and certified by a licensed
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testing laboratory for play in the state. The procedures shall
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address measures to scientifically test and technically evaluate
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electronic gaming machines for compliance with this act. The
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division may contract with an independent testing laboratory to
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conduct any necessary testing. The independent testing laboratory
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must have a national reputation indicating that it is
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demonstrably competent and qualified to scientifically test and
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evaluate electronic games and electronic gaming machines and to
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perform the functions required by this act. An independent
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testing laboratory may not be owned or controlled by a licensee.
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The selection of an independent testing laboratory for any
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purpose related to the conduct of electronic gaming machines by a
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licensee shall be made from a list of laboratories approved by
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the division. The division shall adopt rules regarding the
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testing, certification, control, and approval of electronic games
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and electronic gaming machines.
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(d) Procedures relating to electronic gaming machine
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revenues, including verifying and accounting for such revenues,
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auditing, and collecting taxes and fees.
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(e)1. Procedures for regulating, managing, and auditing the
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operation, financial data, and program information relating to
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electronic gaming machines that enable the division and the
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Department of Law Enforcement to audit the operation, financial
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data, and program information of an electronic gaming machine
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licensee required by the division or the Department of Law
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Enforcement.
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2. Procedures to allow the division and the Department of
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Law Enforcement to monitor, at any time on a real-time basis,
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wagering patterns, payouts, tax collection, and compliance with
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division rules, including the ability of the division or the
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Department of Law Enforcement to suspend play immediately on
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particular electronic gaming machines if such monitoring of the
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facilities-based computer system indicates possible tampering
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with or manipulation of the electronic gaming machines or the
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ability to immediately suspend play of the entire operation if
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the tampering or manipulation is of the computer system. The
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division shall notify the Department of Law Enforcement or the
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Department of Law Enforcement shall notify the division, as
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appropriate, when there is a suspension of play under this
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paragraph. The division and the Department of Law Enforcement
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shall exchange information that is necessary for and cooperate in
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the investigation of the circumstances requiring suspension of
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play.
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(f) Procedures to require each licensee, at the licensee's
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expense, to supply the division a bond having the penal sum of $2
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million payable to the Governor for each year of the licensee's
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electronic gaming machine operations. Any bond shall be issued by
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a surety approved by the division and the Chief Financial
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Officer, conditioned to pay the Chief Financial Officer as
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treasurer of the division. The licensee must keep its books and
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records and make reports as provided in this act and conduct
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electronic gaming machine operations in conformity with this act
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and other provisions of law. Such bond shall be separate from the
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bond required in s. 550.125, Florida Statutes.
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(g) Procedures to require licensees to maintain specified
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records and submit any data, information, record, or report,
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including financial and income records, required by this act or
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rules of the division.
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(h) A requirement that the payout percentage of an
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electronic gaming machine be no less than 85 percent. The
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theoretical payout percentage will be determined using standard
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methods of probability theory.
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(i) Minimum standards for security of the facilities,
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including floor plans, security cameras, and other security
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equipment.
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(j) Procedures to require electronic gaming machine
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licensees to implement and establish drug-testing programs for
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all electronic gaming machine occupational licensees.
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(2) The division shall conduct investigations necessary to
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fulfill its responsibilities under this act.
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(3) The Department of Law Enforcement and local law
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enforcement agencies have concurrent jurisdiction to investigate
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criminal violations of this act and may investigate any other
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criminal violation of law occurring at the facilities of an
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electronic gaming machine licensee. Such investigations may be
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conducted in conjunction with the appropriate state attorney.
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(4)(a) The division, the Department of Law Enforcement, and
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local law enforcement agencies have unrestricted access to an
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electronic gaming machine licensee's facility at all times and
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shall require each electronic gaming machine licensee to strictly
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comply with the laws of this state relating to the transaction of
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such business. The division, the Department of Law Enforcement,
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and local law enforcement agencies may:
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1. Inspect and examine premises where electronic gaming
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machines are offered for play.
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2. Inspect electronic gaming machines and related equipment
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and supplies.
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(b) In addition, the division may:
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1. Collect taxes, assessments, fees, and penalties.
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2. Deny, revoke, suspend, or place conditions on the
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license of a person who violates this act or rules adopted
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pursuant thereto.
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(5) The division shall revoke or suspend the license of any
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person who is no longer qualified or who is found, after
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receiving a license, to have been unqualified at the time of
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application for the license.
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(6) This section does not:
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(a) Prohibit the Department of Law Enforcement or any law
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enforcement authority whose jurisdiction includes a licensed
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facility from conducting investigations of criminal activities
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occurring at the facility;
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(b) Restrict access to an electronic gaming machine
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licensee's facility by the Department of Law Enforcement or any
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local law enforcement authority whose jurisdiction includes the
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electronic gaming machine licensee's facility; or
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(c) Restrict access by the Department of Law Enforcement or
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local law enforcement authorities to information and records
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necessary to the investigation of criminal activity which are
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contained within the electronic gaming machine licensee's
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facility.
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Section 4. License to conduct electronic gaming.--
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(1) Upon application and a finding by the division after
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investigation that the application is complete and the applicant
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is qualified and payment of the initial license fee, the division
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may issue a license to conduct electronic gaming in any
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designated electronic gaming machine area of an eligible
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facility.
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(2) An electronic gaming machine license may be issued only
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to a person or entity licensed to conduct pari-mutuel wagering
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under chapter 550, Florida Statutes, and electronic gaming may be
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operated only at the eligible facility at which the licensee is
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authorized to conduct pari-mutuel wagering activities.
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(3) As a condition of licensure and to maintain continued
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authority for the conduct of electronic gaming, an electronic
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gaming machine licensee shall:
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(a) Continue to comply with this act.
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(b) Continue to comply with chapter 550, Florida Statutes,
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where applicable, and maintain the pari-mutuel permit and license
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in good standing pursuant to chapter 550, Florida Statutes.
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Notwithstanding any contrary provision of law, a pari-mutuel
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permitholder may, within 60 days after the effective date of this
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act, amend its pari-mutuel wagering operating license. The
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division shall issue a new license to the permitholder to
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effectuate any approved change.
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(c) Conduct no fewer than a full schedule of live racing or
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games as defined in s. 550.002(11), Florida Statutes, including
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conducting races or games under s. 550.475, Florida Statutes, or
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be authorized to conduct limited intertrack wagering under s.
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550.6308, Florida Statutes, at the eligible facility. A
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permitholder's responsibility to conduct such number of live
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races or games shall be reduced by the number of races or games
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that could not be conducted due to the direct result of fire,
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war, hurricane, or other disaster or event beyond the control of
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the permitholder.
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(d) Upon approval of any changes relating to the pari-
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mutuel permit by the division, provide appropriate current and
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accurate documentation, on a timely basis, to the division to
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maintain the electronic gaming machine license. Changes in
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ownership or interest in an electronic gaming machine license of
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5 percent or more of the stock or other evidence of ownership or
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equity in the electronic gaming machine license or of any parent
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corporation or other business entity that owns or controls the
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electronic gaming machine license must be approved by the
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division prior to such change, unless the owner is an existing
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holder of the license who was previously approved by the
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division. Any changes in ownership or interest in an electronic
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gaming machine license of less than 5 percent, unless such change
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results in a cumulative total of 5 percent or more, shall be
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reported to the division within 20 days after the change. The
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division may conduct an investigation to ensure that the license
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is properly updated to show the change in ownership or interest.
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Reporting is not required if the person is holding 5 percent or
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less equity or securities of a corporate owner of the electronic
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gaming machine licensee that has its securities registered
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pursuant to section 12 of the Securities Exchange Act of 1934, 15
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U.S.C. ss. 78a-78kk, and if such corporation or entity files with
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the United States Securities and Exchange Commission the reports
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required by section 13 of that act or if the securities of the
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corporation or entity are regularly traded on an established
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securities market in the United States. A change in ownership or
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interest of less than 5 percent which results in a cumulative
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ownership or interest of 5 percent or more must be approved by
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the division prior to such change unless the owner is an existing
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holder of the license who was previously approved by the
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division.
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(e) Allow the division and the Department of Law
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Enforcement unrestricted access to and right of inspection of
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facilities of an electronic gaming machine licensee in which any
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activity relative to the operation of electronic gaming machines
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is conducted.
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(f) Ensure that the facilities-based computer system that
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the licensee will use for operational and accounting functions of
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the electronic gaming machine facility is specifically structured
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to facilitate regulatory oversight. The facilities-based computer
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system shall be designed to give the division and the Department
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of Law Enforcement the ability to monitor, at any time on a real-
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time basis, the wagering patterns, payouts, tax collection, and
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such other operations as are necessary to determine whether the
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facility is in compliance with statutory provisions and rules
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adopted by the division for the regulation and control of
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electronic gaming machines. The division and the Department of
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Law Enforcement shall have continuous access to this system,
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including the ability of the division or the Department of Law
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Enforcement to suspend play immediately on particular electronic
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gaming machines if monitoring of the system indicates possible
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tampering with or manipulation of those electronic gaming
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machines or the ability to immediately suspend play of the entire
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operation if the tampering or manipulation is of the computer
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system. The computer system shall be reviewed and approved by the
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division to ensure necessary access, security, and functionality.
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The division may adopt rules to provide for the approval process.
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(g) Ensure that each electronic gaming machine and
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electronic game is protected from manipulation or tampering to
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affect the random probabilities of winning plays. The division or
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the Department of Law Enforcement may suspend play upon
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reasonable suspicion of any manipulation or tampering. When play
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has been suspended on any electronic gaming machine, the division
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or the Department of Law Enforcement may examine any electronic
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gaming machine to determine whether the machine has been tampered
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with or manipulated and whether the machine should be returned to
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operation.
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(h) Submit a security plan, including the facilities' floor
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plans, the locations of security cameras, and a listing of all
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security equipment that is capable of observing and
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electronically recording activities being conducted in the
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facilities of the electronic gaming machine licensee. The
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security plan must meet the minimum security requirements as
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determined by the division under this act, and be implemented
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prior to operation of electronic gaming machine games. The
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electronic gaming machine licensee's facilities must adhere to
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the security plan at all times. Any changes to the security plan
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must be submitted by the licensee to the division before they are
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implemented. The division shall furnish copies of the security
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plan and changes in the plan to the Department of Law
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Enforcement.
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(i) Create and file with the division a written policy for:
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1. Creating opportunities to purchase from vendors in this
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state, including minority vendors.
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2. Creating opportunities for employment of residents of
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this state, including minority residents.
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3. Ensuring opportunities for construction services from
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minority contractors.
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4. Ensuring that opportunities for employment are offered
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on an equal, nondiscriminatory basis.
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5. Training for employees on responsible gaming and working
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with a compulsive or addictive gambling prevention program to
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further its purposes as provided for in this act.
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6. The implementation of a drug-testing program that
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includes, but is not limited to requiring each employee to sign
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an agreement that he or she understands that the electronic
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gaming machine facility is a drug-free workplace.
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The electronic gaming machine licensee shall use the Internet-
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based job-listing system of the Agency for Workforce Innovation
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in advertising employment opportunities. Beginning in June 2009,
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each electronic gaming machine licensee shall submit an annual
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report to the division containing information indicating
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compliance with this paragraph in regard to minority persons.
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(j) Ensure that the payout percentage of an electronic
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gaming machine is no less than 85 percent. The theoretical payout
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percentage will be determined using standard methods of
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probability theory.
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(5) An electronic gaming machine license is not
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transferable.
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(6) An electronic gaming machine licensee shall keep and
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maintain permanent daily records of its electronic gaming machine
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operation and shall maintain such records for a period of not
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less than 5 years. These records must include all financial
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transactions and contain sufficient detail to determine
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compliance with this act. All records shall be available for
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audit and inspection by the division, the Department of Law
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Enforcement, or other law enforcement agencies during the
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licensee's regular business hours.
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(7) An electronic gaming machine licensee shall file with
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the division a monthly report containing the required records of
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such electronic gaming machine operation. The required reports
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shall be submitted on forms prescribed by the division and shall
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be due at the same time as the monthly pari-mutuel reports are
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due. Such reports are public records once filed.
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(8) An electronic gaming machine licensee shall file with
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the division an audit of the receipt and distribution of all
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electronic gaming machine revenues provided by an independent
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certified public accountant verifying compliance with all
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financial and auditing provisions of this act and rules adopted
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under this act. The audit must include verification of compliance
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with all statutes and rules regarding all required records of
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electronic gaming machine operations. Such audit shall be filed
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within 120 days after completion of the permitholder's fiscal
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year.
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(9) The division may share any information with the
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Department of Law Enforcement, any other law enforcement agency
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with jurisdiction over electronic gaming machines or pari-mutuel
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activities, or any other state or federal law enforcement agency
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the division or the Department of Law Enforcement deems
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appropriate. Any law enforcement agency having jurisdiction over
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electronic gaming machines or pari-mutuel activities may share
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with the division information obtained or developed by it.
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(10)(a) An electronic gaming machine license or renewal may
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not be issued to an applicant licensed under chapter 550, Florida
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Statutes, to conduct live pari-mutuel wagering races or games
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unless the applicant has on file with the division a binding
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written agreement between:
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1. The applicant and the Florida Horsemen's Benevolent and
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Protective Association, Inc., or the association representing a
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majority of the thoroughbred owners and trainers at the
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applicant's eligible facility; or
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2. The applicant and the Florida Standardbred Breeders and
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Owners Association, Inc., or the association representing a
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majority of the standardbred owners and trainers at the
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applicant's eligible facility; or
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3. The applicant and the Florida Greyhound Association,
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Inc., or the association representing a majority of the greyhound
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owners and trainers at the applicant's eligible facility; or
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4. The applicant and the Florida Quarter Horse Racing
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Association, Inc., or the association representing a majority of
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the quarter horse owners and trainers at the applicant's eligible
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facility; or
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5. The applicant and the International Jai Alai Players
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Association or a binding written agreement approved by a majority
519
of the jai alai players at the applicant's eligible facility.
520
521
The agreement shall govern the payment of awards and purses on
522
live thoroughbred, harness, quarter horse, and dog races or
523
player awards on Jai Alai games conducted at the licensee's pari-
524
mutuel facility.
525
(b) An electronic gaming machine license or renewal thereof
526
may not be issued to such an applicant unless the applicant has
527
on file with the division a binding written agreement between the
528
applicant and the Florida Thoroughbred Breeders' Association,
529
Inc., the Florida Standardbred Breeders and Owners Association,
530
Inc., the Florida Quarter Horse Racing Association, Inc., or the
531
association representing a majority of the racehorse owners and
532
breeders at the applicant's eligible facility governing the
533
payment of breeders', stallion, and special racing awards on live
534
thoroughbred races conducted at the licensee's pari-mutuel
535
facility. The agreement governing purses and the agreement
536
governing awards may direct the payment of such purses and awards
537
from revenues generated by any wagering or games the applicant is
538
authorized to conduct under state law. All purses and awards are
539
subject to the terms of chapter 550, Florida Statutes. All sums
540
for breeders', stallion, and special racing awards shall be
541
remitted monthly to the Florida Thoroughbred Breeders'
542
Association, Inc., for the payment of awards subject to the
543
administrative fee authorized in s. 550.2625(3), Florida
544
Statutes.
545
(c) An electronic gaming machine license or renewal thereof
546
may not be issued to an applicant licensed to conduct intertrack
547
wagering under s. 550.6308, Florida Statutes, unless the
548
applicant has on file with the division a binding written
549
agreement between the applicant and the Florida Thoroughbred
550
Breeders' Association, Inc., dedicating to the payment of
551
breeders', stallion, and special racing awards on live
552
thoroughbred races conducted in this state at least the same
553
percentage of electronic gaming machine revenues as the highest
554
percentage of electronic gaming machine revenues dedicated to
555
purses and awards in a current agreement under this subsection by
556
an applicant licensed under chapter 550, Florida Statutes, to
557
conduct live thoroughbred races, with at least half of such funds
558
distributed as special racing awards.
559
(d) The division shall suspend an electronic gaming machine
560
license if any agreement required under paragraph (a) is
561
terminated or otherwise ceases to operate or if the division
562
determines that the licensee is materially failing to comply with
563
the terms of such agreement. Any suspension shall take place in
564
accordance with chapter 120, Florida Statutes.
565
(e)1. If an agreement required under paragraph (a) cannot
566
be reached prior to the initial issuance of the electronic gaming
567
machine license, either party may request arbitration or, in the
568
case of a renewal, if such agreement is not in place 120 days
569
prior to the scheduled expiration date of the electronic gaming
570
machine license, the applicant shall immediately ask the American
571
Arbitration Association to furnish a list of 11 arbitrators, each
572
of whom shall have at least 5 years of commercial arbitration
573
experience and no financial interest in or prior relationship
574
with any party or with an affiliated or related entity or
575
principal. Each required party to the agreement shall select a
576
single arbitrator from the list within 10 days after receipt, and
577
the persons selected shall choose one additional arbitrator from
578
the list within 10 days.
579
2. If an agreement required under paragraph (a) is not in
580
place 60 days after the request under subparagraph 1., in the
581
case of an initial electronic gaming machine license or, in the
582
case of a renewal, 60 days prior to the scheduled expiration date
583
of the license, the matter shall be immediately submitted to
584
mandatory binding arbitration. The three arbitrators selected
585
pursuant to subparagraph 1. shall conduct the arbitration
586
pursuant to the American Arbitration Association Commercial
587
Arbitration Rules and chapter 682, Florida Statutes.
588
3. At the conclusion of the proceedings, which may be no
589
later than 90 days after the request under subparagraph 1. in the
590
case of an initial electronic gaming machine license or, in the
591
case of a renewal, 30 days prior to the scheduled expiration date
592
of the electronic gaming machine license, the arbitration panel
593
shall present to the parties a proposed agreement that the
594
majority of the panel believes equitably balances the rights,
595
interests, obligations, and reasonable expectations of the
596
parties. The parties shall immediately enter into such agreement,
597
which shall satisfy the requirements of paragraph (a) and permit
598
issuance of the pending annual electronic gaming machine license
599
or renewal. The agreement shall be effective until the last day
600
of the license or renewal period or until the parties enter into
601
a different agreement. Each party shall pay its respective costs
602
of arbitration and shall pay one-half of the costs of the
603
arbitration panel, unless the parties otherwise agree. If the
604
agreement remains in place 120 days prior to the scheduled
605
issuance of the next annual license renewal, the arbitration
606
process established in this paragraph shall begin again.
607
4. If neither agreement required under paragraph (a) is in
608
place by the deadlines established in this paragraph, arbitration
609
regarding each agreement will proceed independently, with
610
separate lists of arbitrators, arbitration panels, arbitration
611
proceedings, and resulting agreements.
612
5. With respect to the agreement required under paragraph
613
(a) governing the payment of purses, the arbitration and
614
resulting agreement is limited to the payment of purses from
615
electronic gaming machine revenues only.
616
(f) If any provision of this subsection or its application
617
to any person or circumstance is held invalid, the invalidity
618
does not affect other provisions or applications of this
619
subsection or act which can be given effect without the invalid
620
provision or application, and to this end the provisions of this
621
subsection are severable.
622
Section 5. Temporary licenses.--
623
(1) Notwithstanding any provision of s. 120.60, Florida
624
Statutes, to the contrary, the division may issue a temporary
625
occupational license upon receipt of a complete application and a
626
determination that the applicant has not been convicted of or had
627
adjudication withheld on any disqualifying criminal offense. The
628
temporary occupational license remains valid until the division
629
grants an occupational license or notifies the applicant of its
630
intended decision to deny the license pursuant to the provisions
631
of s. 120.60, Florida Statutes. The division shall adopt rules to
632
administer this subsection. However, not more than one temporary
633
license may be issued for any person in any year.
634
(2) A temporary license issued under this section is
635
nontransferable.
636
Section 6. Electronic gaming machine license renewal.--
637
(1) An electronic gaming machine license is effective for 1
638
year after issuance and shall be renewed annually. The
639
application for renewal must contain all revisions to the
640
information submitted in the prior year's application which are
641
necessary to maintain such information as accurate and current.
642
(2) The applicant for renewal shall attest that any
643
information changes do not affect such applicant's qualifications
644
for license renewal.
645
(3) Upon determination by the division that the application
646
for renewal is complete and qualifications have been met,
647
including payment of the renewal fee, the license shall be
648
renewed.
649
Section 7. License fee; tax rate; penalties.--
650
(1) LICENSE FEE.--
651
(a) Upon submission of the initial application for an
652
electronic gaming machine license and annually thereafter, on the
653
anniversary date of the issuance of the initial license, the
654
licensee must pay to the division a nonrefundable license fee of
655
$3 million for the succeeding 12 months of licensure. The fee
656
shall be deposited into the Pari-mutuel Wagering Trust Fund of
657
the Department of Business and Professional Regulation to be used
658
by the division and the Department of Law Enforcement for
659
investigations, regulation of electronic gaming, and enforcement
660
of electronic gaming provisions. These payments shall be
661
accounted for separately from taxes or fees paid pursuant to the
662
provisions of chapters 550 or 551, Florida Statutes.
663
(b) The division shall evaluate the license fee and submit
664
recommendations in the legislative budget request regarding the
665
optimum level of electronic gaming machine license fees required
666
to adequately support the electronic gaming machine regulatory
667
program.
668
(c) Notwithstanding s. 550.135(2), Florida Statutes, all
669
fees and fines collected pursuant to this chapter shall remain in
670
the Pari-Mutuel Wagering Trust Fund for use by the Division for
671
regulation of electronic gaming machines and electronic games.
672
(2) TAX ON ELECTRONIC GAMING MACHINE REVENUES.--
673
(a) The tax rate on electronic gaming machine revenues at
674
each facility shall be 35 percent.
675
(b) The electronic gaming machine revenue tax imposed by
676
this section shall be paid to the division for deposit into the
677
Pari-mutuel Wagering Trust Fund for immediate transfer by the
678
Chief Financial Officer for deposit into the Educational
679
Enhancement Trust Fund of the Department of Education. Any
680
interest earnings on the tax revenues shall also be transferred
681
to the Educational Enhancement Trust Fund.
682
(c)1. Funds transferred to the Educational Enhancement
683
Trust Fund shall be used to supplement public education funding
684
statewide.
685
2. If necessary to comply with any covenant established
687
Florida Statutes, funds transferred to the Educational
688
Enhancement Trust Fund shall first be available to pay debt
689
service on lottery bonds issued to fund school construction in
690
the event lottery revenues are insufficient for such purpose or
691
to satisfy debt service reserve requirements established in
692
connection with lottery bonds. Moneys available pursuant to this
693
subparagraph are subject to annual appropriation by the
694
Legislature.
695
(3) PAYMENT AND DISPOSITION OF TAXES.--Payment for the tax
696
on electronic gaming machine revenues imposed by this section
697
shall be paid to the division. The division shall deposit such
698
funds with the Chief Financial Officer, to the credit of the
699
Pari-mutuel Wagering Trust Fund. The electronic gaming machine
700
licensee shall remit to the division payment for the tax on
701
electronic gaming machine revenues by 3 p.m. Wednesday of each
702
week for taxes imposed and collected for the preceding week
703
ending on Sunday. The electronic gaming machine licensee shall
704
file a report under oath by the 5th day of each calendar month
705
for all taxes remitted during the preceding calendar month. Such
706
payments shall be accompanied by a report under oath showing all
707
electronic gaming machine activities for the preceding calendar
708
month and such other information as may be prescribed by the
709
division.
710
(4) FAILURE TO PAY TAX; PENALTIES.--An electronic gaming
711
machine licensee who does not make tax payments required under
712
this section is subject to an administrative penalty of up to
713
$10,000 for each day the tax payment is not remitted. All
714
administrative penalties imposed and collected shall be deposited
715
into the Pari-mutuel Wagering Trust Fund of the Department of
716
Business and Professional Regulation. If an electronic gaming
717
machine licensee does not pay penalties imposed by the division,
718
the division may suspend, revoke, or refuse to renew the license
719
of the electronic gaming machine licensee.
720
(5) SUBMISSION OF FUNDS.--The division may require
721
electronic gaming machine licensees to remit taxes, fees, fines,
722
and assessments by electronic funds transfer.
723
Section 8. Electronic gaming machine occupational license;
724
findings; application; fee.--
725
(1) The Legislature finds that licensees under this section
726
require heightened state scrutiny, including the submission by
727
individual licensees or persons associated with those entities
728
described in this act of fingerprints for a criminal history
729
record check.
730
(2)(a) The following electronic gaming machine occupational
731
licenses shall be issued to applicants that, by virtue of the
732
positions they hold, might be granted access to electronic gaming
733
machine areas or to any other person or entity in one of the
734
following categories:
735
1. General occupational licenses for general employees,
736
including food service, maintenance, and other similar service
737
and support employees having access to the electronic gaming
738
machine area.
739
2. Professional occupational licenses for any person,
740
proprietorship, partnership, corporation, or other entity that is
741
authorized by an electronic gaming machine licensee to manage,
742
oversee, or otherwise control daily operations as an electronic
743
gaming machine manager, floor supervisor, security personnel, or
744
other similar position of oversight of gaming operations, or any
745
person who is not an employee of the electronic gaming machine
746
licensee and who provides maintenance, repair, or upgrades or
747
otherwise services an electronic gaming machine or other
748
electronic gaming machine equipment.
749
3. Business occupational licenses for any electronic gaming
750
machine management company or company associated with electronic
751
gaming, any person who manufactures, distributes, or sells
752
electronic gaming machines, electronic gaming machine
753
paraphernalia, or other associated equipment to electronic gaming
754
machine licensees, or any company that sells or provides goods or
755
services associated with electronic gaming to electronic gaming
756
machine licensees.
757
(b) The division may issue one license in order to combine
758
licenses under this section with pari-mutuel occupational
759
licenses and cardroom licenses pursuant to s. 550.105(2)(b),
760
Florida Statutes. The division shall adopt rules pertaining to
761
occupational licenses under this subsection. Such rules may
762
specify requirements and restrictions for licensed occupations
763
and categories, procedures to apply for a license or combination
764
of licenses, disqualifying criminal offenses for a licensed
765
occupation or categories of occupations, and which types of
766
occupational licenses may be combined into a single license under
767
this section. The fingerprinting requirements of subsection (7)
768
apply to any combination license that includes electronic gaming
769
machine license privileges. The division may not adopt a rule
770
allowing the issuance of an occupational license to any person
771
who does not meet the minimum background qualifications of this
772
section.
773
(c) Electronic gaming machine occupational licenses are not
774
transferable.
775
(3) An electronic gaming machine licensee may not employ or
776
otherwise allow a person to work at a licensed facility unless
777
such person holds the appropriate valid occupational license. An
778
electronic gaming machine licensee may not contract or otherwise
779
conduct business with a business required to hold an electronic
780
gaming machine occupational license unless the business holds
781
such a license. An electronic gaming machine licensee may not
782
employ or otherwise allow a person to work in a supervisory or
783
management professional level at a licensed facility unless such
784
person holds a valid electronic gaming machine occupational
785
license. All electronic gaming machine occupational licensees,
786
while present in electronic gaming machine areas, shall display
787
on their persons their occupational license identification cards.
788
(4)(a) A person seeking an electronic gaming machine
789
occupational license or renewal thereof shall apply on forms
790
prescribed by the division and include payment of the appropriate
791
application fee. Initial and renewal applications for electronic
792
gaming machine occupational licenses must contain all information
793
that the division, by rule, requires.
794
(b) An electronic gaming machine license or combination
795
license is valid for the same term as a pari-mutuel occupational
796
license issued pursuant to s. 550.105(1), Florida Statutes.
797
(c) Pursuant to rules adopted by the division, any person
798
may apply for and, if qualified, be issued an electronic gaming
799
machine occupational license valid for a period of 3 years upon
800
payment of the full occupational license fee for each of the 3
801
years for which the license is issued. The electronic gaming
802
machine occupational license is valid during its specified term
803
at any licensed facility where electronic gaming machine gaming
804
is authorized to be conducted.
805
(d) The electronic gaming machine occupational license fee
806
for initial application and annual renewal shall be determined by
807
rule of the division but may not exceed $50 for a general or
808
professional occupational license for an employee of the
809
electronic gaming machine licensee or $1,000 for a business
810
occupational license for nonemployees of the licensee who provide
811
goods or services to the electronic gaming machine licensee.
812
License fees for general occupational licenses shall be paid by
813
the electronic gaming machine licensee. Failure to pay the
814
required fee constitutes grounds for disciplinary action by the
815
division against the electronic gaming machine licensee, but it
816
is not a violation of this act or rules of the division by the
817
general occupational licensee and does not prohibit the initial
818
issuance or the renewal of the general occupational license.
819
(5) The division may:
820
(a) Deny an application for, or revoke, suspend, or place
821
conditions or restrictions on, a license of an applicant or
822
licensee that has been refused a license by another state gaming
823
commission, governmental department, agency, or other authority
824
exercising regulatory jurisdiction over the gaming of another
825
state or jurisdiction; or
826
(b) Deny an application for, or suspend, or place
827
conditions on a license of any applicant or licensee that is
828
under suspension or has unpaid fines in another state or
829
jurisdiction.
830
(6)(a) The division may deny, suspend, revoke, or refuse to
831
renew any electronic gaming machine occupational license if the
832
applicant or licensee has violated this act or the rules
833
governing the conduct of persons connected with electronic games
834
or electronic gaming. In addition, the division may deny,
835
suspend, revoke, or refuse to renew any electronic gaming machine
836
occupational license if the applicant or licensee has been
837
convicted under the laws of this state or of another state, or
838
under the laws of the United States, of a capital felony, a
839
felony, or an offense in another state which would be a felony
840
under the laws of this state involving arson; trafficking in,
841
conspiracy to traffic in, smuggling, importing, conspiracy to
842
smuggle or import, or delivery, sale, or distribution of a
843
controlled substance; racketeering; or a crime showing a lack of
844
good moral character, or has had a gaming license revoked by this
845
state or another jurisdiction for any gaming-related offense.
846
(b) The division may deny, revoke, or refuse to renew any
847
electronic gaming machine occupational license if the applicant
848
or licensee has been convicted of a felony or misdemeanor in this
849
state, in another state, or under the laws of the United States
850
if such felony or misdemeanor is related to gambling or
851
bookmaking as described in s. 849.25, Florida Statutes.
852
(c) As used in this subsection, the term "convicted" means
853
having been found guilty, with or without adjudication of guilt,
854
as a result of a jury verdict, nonjury trial, or entry of a plea
855
of guilty or nolo contendere.
856
(7) Fingerprints for electronic gaming machine occupational
857
license applications shall be taken in a manner approved by the
858
division and shall be submitted electronically to the Department
859
of Law Enforcement for state processing and to the Federal Bureau
860
of Investigation for national processing for a criminal history
861
record check. All persons as specified in s. 550.1815(1)(a),
862
Florida Statutes, employed by or working within licensed premises
863
shall submit fingerprints for a criminal history record check and
864
may not have been convicted of any disqualifying criminal
865
offenses specified in subsection (6). Division employees and law
866
enforcement officers assigned to work within such premises as
867
part of their official duties are excluded from the criminal
868
history record check requirements. As used in this subsection,
869
the term "convicted" means having been found guilty, with or
870
without adjudication of guilt, as a result of a jury verdict,
871
nonjury trial, or entry of a plea of guilty or nolo contendere.
872
(a) Fingerprints shall be taken in a manner approved by the
873
division upon initial application, or as required thereafter by
874
rule of the division, and shall be submitted electronically to
875
the Department of Law Enforcement for state processing. The
876
Department of Law Enforcement shall forward the fingerprints to
877
the Federal Bureau of Investigation for national processing. The
878
results of the criminal history record check shall be returned to
879
the division for screening. Licensees shall provide necessary
880
equipment, approved by the Department of Law Enforcement, to
881
facilitate such electronic submission. The division requirements
882
shall be instituted in consultation with the Department of Law
883
Enforcement.
884
(b) The cost of processing fingerprints and conducting a
885
criminal history record check for a general occupational license
886
shall be paid by the electronic gaming machine licensee. The cost
887
of processing fingerprints and conducting a criminal history
888
record check for a business or professional occupational license
889
shall be paid by the person being checked. The Department of Law
890
Enforcement may invoice the division for the fingerprints
891
submitted each month.
892
(c) All fingerprints submitted to the Department of Law
893
Enforcement shall be retained by the Department of Law
894
Enforcement and entered into the statewide automated fingerprint
895
identification system as authorized by s. 943.05(2)(b), Florida
896
Statutes, and shall be available for all purposes and uses
897
authorized for arrest fingerprint cards in the statewide
898
automated fingerprint identification system pursuant to s.
899
943.051, Florida Statutes.
900
(d) The Department of Law Enforcement shall search all
901
arrest fingerprints received pursuant to s. 943.051, Florida
902
Statutes, against the fingerprints retained in the statewide
903
automated fingerprint identification system. Any arrest record
904
that is identified with the retained fingerprints of a person
905
subject to the criminal history screening requirements shall be
906
reported to the division. Each licensed facility shall pay a fee
907
for the cost of retention of the fingerprints and the ongoing
908
searches under this paragraph. The division shall forward the fee
909
to the Department of Law Enforcement. The amount of the fee to be
910
imposed for such searches and the procedures for the retention of
911
licensee fingerprints shall be as established by rule of the
912
Department of Law Enforcement. The division shall inform the
913
Department of Law Enforcement of any change in the license status
914
of licensees whose fingerprints are retained.
915
(e) The division shall request the Department of Law
916
Enforcement to forward the fingerprints to the Federal Bureau of
917
Investigation for a national criminal history records check every
918
3 years following issuance of a license. If the fingerprints of a
919
person who is licensed have not been retained by the Department
920
of Law Enforcement, the person must file a complete set of
921
fingerprints as provided in paragraph (a). The division shall
922
collect the fees for the cost of the national criminal history
923
record check and shall forward the payment to the Department of
924
Law Enforcement. The cost of processing fingerprints and
925
conducting a criminal history record check for a general
926
occupational license shall be paid by the electronic gaming
927
machine licensee. The cost of processing fingerprints and
928
conducting a criminal history record check for a business or
929
professional occupational license shall be paid by the person
930
being checked. The Department of Law Enforcement may invoice the
931
division for the fingerprints submitted each month. Under penalty
932
of perjury, each person who is licensed or fingerprinted must
933
agree to inform the division within 48 hours if he or she is
934
convicted of or enters a plea of guilty or nolo contendere to any
935
disqualifying offense, regardless of adjudication.
936
(8) All moneys collected pursuant to this section shall be
937
deposited into the Pari-mutuel Wagering Trust Fund.
938
(9) The division may deny, revoke, or suspend any
939
occupational license if the applicant or licensee accumulates
940
unpaid obligations, defaults in obligations, or issues drafts or
941
checks that are dishonored or for which payment is refused
942
without reasonable cause.
943
(10) The division may fine or suspend, revoke, or place
944
conditions upon the license of any licensee who provides false
945
information under oath regarding an application for a license or
946
an investigation by the division.
947
(11) The division may impose a civil fine of up to $5,000
948
for each violation of this act or the rules of the division in
949
addition to or in lieu of any other penalty. The division may
950
adopt a penalty schedule for violations for which it would impose
951
a fine in lieu of a suspension and adopt rules allowing for the
952
issuance of citations, including procedures to address such
953
citations, to persons who violate such rules. In addition to any
954
other penalty provided by law, the division may exclude from all
955
licensed electronic gaming machine facilities in this state, for
956
a period not to exceed the period of suspension, revocation, or
957
ineligibility, any person whose occupational license application
958
has been refused or who has been declared ineligible to hold an
959
occupational license or whose occupational license has been
960
suspended or revoked by the division.
961
Section 9. Prohibited relationships.--
962
(1) A person employed by or performing any function on
963
behalf of the division may not:
964
(a) Be an officer, director, owner, or employee of any
965
person or entity licensed by the division.
966
(b) Have or hold any interest, direct or indirect, in or
967
engage in any commerce or business relationship with any person
968
licensed by the division.
969
(2) A manufacturer or distributor of electronic gaming
970
machines may not enter into any contract with an electronic
971
gaming machine licensee which provides for any revenue sharing
972
that is directly or indirectly calculated on the basis of a
973
percentage of electronic gaming machine revenues. Any maneuver,
974
shift, or device whereby this subsection is violated is a
975
violation of this act and renders any such agreement void.
976
(3) A manufacturer or distributor of electronic gaming
977
machines or equipment necessary for the operation of electronic
978
gaming machines or an officer, director, or employee of any such
979
manufacturer or distributor may not have any ownership or
980
financial interest in an electronic gaming machine license or any
981
business owned by an electronic gaming machine licensee.
982
(4) An employee of the division or relative living in the
983
same household as the employee may not wager on an electronic
984
gaming machine located at a facility licensed by the division.
985
(5) An occupational licensee or relative living in the same
986
household as the licensee may not wager on an electronic gaming
987
machine located at a facility operated by such licensee.
988
Section 10. Prohibited acts; penalties.--
989
(1) Except as otherwise provided by law and in addition to
990
any other penalty, a person who knowingly makes or causes to be
991
made, or aids, assists, or procures another to make, a false
992
statement in any report, disclosure, application, or other
993
document required under this act or under any rule adopted under
994
this act is subject to an administrative fine or civil penalty of
995
up to $10,000.
996
(2) Except as otherwise provided by law and in addition to
997
any other penalty, a person who possesses an electronic gaming
998
machine without a license required by this act or who possesses
999
an electronic gaming machine at a location other than at the
1000
electronic gaming machine licensee's facility is subject to an
1001
administrative fine or civil penalty of up to $10,000 per
1002
machine. This prohibition does not apply to:
1003
(a) Electronic gaming machine manufacturers or distributors
1004
that hold appropriate licenses who are authorized to maintain an
1005
electronic gaming machine storage and maintenance facility in
1006
this state. The division may adopt rules regarding security,
1007
inspection, and access to the storage facility.
1008
(b) Certified educational facilities that are authorized by
1009
the division to maintain electronic gaming machines for the sole
1010
purpose of education and licensure of electronic gaming machine
1011
technicians, inspectors, or investigators. The division and the
1012
Department of Law Enforcement may possess electronic gaming
1013
machines for training and testing purposes. The division may
1014
adopt rules regarding the regulation of such electronic gaming
1015
machines used for the sole purpose of education and licensure of
1016
electronic gaming machine technicians, inspectors, or
1017
investigators.
1018
(3) A person who knowingly excludes or attempts to exclude,
1019
anything of value from the deposit, counting, collection, or
1020
computation of revenues from electronic gaming machine activity,
1021
or a person who by trick, sleight-of-hand performance, fraud or
1022
fraudulent scheme, or device wins or attempts to win, for himself
1023
or herself or for another, money or property or a combination
1024
thereof, or reduces or attempts to reduce a losing wager in
1025
connection with electronic gaming commits a felony of the third
1027
775.084, Florida Statutes.
1028
(4) Any person who manipulates or attempts to manipulate
1029
the outcome, payoff, or operation of an electronic gaming machine
1030
by physical tampering or the use of an object, instrument, or
1031
device, whether mechanical, electrical, or magnetic, or by other
1032
means, commits a felony of the third degree, punishable as
1034
Statutes.
1035
(5) Theft of electronic gaming machine proceeds or property
1036
belonging to an electronic gaming machine operator, licensee, or
1037
licensed facility by an employee of the operator or facility or
1038
by an officer, partner, owner, or employee of a person contracted
1039
to provide services to the operator or facility constitutes a
1040
felony of the third degree, punishable as provided in s. 775.082
1041
or s. 775.083, Florida Statutes.
1042
(6)(a) A law enforcement officer or electronic gaming
1043
machine operator who has probable cause to believe that a person
1044
has committed a violation of subsection (3), subsection (4), or
1045
subsection (5) and that officer or operator can recover the lost
1046
proceeds from the activity by taking the person into custody may,
1047
for the purpose of attempting to effect the recovery of the
1048
proceeds, take into custody on the premises and detain the person
1049
in a reasonable manner for a reasonable time. If the operator
1050
takes the person into custody, a law enforcement officer shall be
1051
called to the scene immediately. The taking into custody and
1052
detention by a law enforcement officer or electronic gaming
1053
machine operator, if done in compliance with this subsection,
1054
does not render such law enforcement officer, or the officer's
1055
agency, or the electronic gaming machine operator criminally or
1056
civilly liable for false arrest, false imprisonment, or unlawful
1057
detention.
1058
(b) A law enforcement officer may arrest, on or off the
1059
premises and without warrant, any person if the officer has
1060
probable cause to believe that person has violated subsection
1061
(3), subsection (4), or subsection (5).
1062
(c) A person who resists the reasonable effort of a law
1063
enforcement officer or electronic gaming machine operator to take
1064
into custody a person who is violating subsection (3), subsection
1065
(4), or subsection (5) commits a misdemeanor of the first degree,
1067
Statutes, unless the person did not know or have reason to know
1068
that the person seeking to take him or her into custody was a law
1069
enforcement officer or electronic gaming machine operator.
1070
(7) Penalties imposed and collected under this section must
1071
be deposited into the Pari-mutuel Wagering Trust Fund of the
1072
Department of Business and Professional Regulation.
1073
Section 11. Legal devices.--Notwithstanding any provision
1074
of law to the contrary, electronic gaming machines manufactured,
1075
sold, distributed, possessed, or operated pursuant to this act
1076
are lawful in this state. No electronic game or electronic gaming
1077
machine shall enter the state until it has been tested and
1078
certified by a licensed testing laboratory, and certified for
1079
play in the state. The division shall adopt rules regarding the
1080
testing, certification, control, and approval of electronic games
1081
and electronic gaming machines entering, departing, or moving
1082
within the state.
1083
Section 12. Exclusions of certain persons.--In addition to
1084
the power to exclude certain persons, the division may exclude
1085
any person from a facility of an electronic gaming machine
1086
licensee in this state for conduct that would constitute, if the
1087
person were a licensee, a violation of this act or the rules of
1088
the division. The division may exclude a person who has been
1089
ejected from a gaming facility or who has been excluded from a
1090
gaming facility in another state by the governmental authority
1091
exercising regulatory jurisdiction over the gaming in such other
1092
state. This section does not abrogate the common law right of an
1093
electronic gaming machine licensee to exclude a patron.
1094
Section 13. Persons prohibited from operating electronic
1095
gaming machines.--
1096
(1) A person who has not attained 21 years of age may not
1097
operate or play an electronic gaming machine or have access to
1098
the designated electronic gaming machine area of a facility of an
1099
electronic gaming machine licensee.
1100
(2) An electronic gaming machine licensee or agent or
1101
employee of an electronic gaming machine licensee may not
1102
knowingly allow a person who has not attained 21 years of age:
1103
(a) To play or operate an electronic gaming machine.
1104
(b) To be employed in any position allowing or requiring
1105
access to the designated gaming area of a facility of an
1106
electronic gaming machine licensee.
1107
(c) To have access to the designated electronic gaming
1108
machine area of a facility of an electronic gaming machine
1109
licensee.
1110
(3) A licensed facility shall post clear and conspicuous
1111
signage within the designated electronic gaming machine areas
1112
which states:
1113
1114
THE PLAYING OF ELECTRONIC GAMING MACHINES BY PERSONS UNDER
1115
THE AGE OF 21 IS AGAINST FLORIDA LAW (CITE TO FLORIDA
1116
STATUTES SECTION). PROOF OF AGE MAY BE REQUIRED AT ANY TIME.
1117
1118
Section 14. Electronic gaming machine areas.--
1119
(1) An electronic gaming machine licensee may make
1120
available for play up to 2,000 electronic gaming machines within
1121
the eligible facility of the electronic gaming machine licensee
1122
in a designated electronic gaming machine area. No more than
1123
2,000 electronic gaming machines shall be authorized at a
1124
facility regardless of the number of permitholders conducting
1125
operations at that facility.
1126
(2) The electronic gaming machine licensee shall display
1127
pari-mutuel races or games within the designated electronic
1128
gaming machine areas and offer patrons within such areas the
1129
opportunity to wager on live, intertrack, and simulcast races
1130
offered to the patrons.
1131
(3) The division shall require the posting of signs warning
1132
of the risks and dangers of gambling, showing the odds of
1133
winning, and informing patrons of the toll-free telephone number
1134
available to provide information and referral services regarding
1135
compulsive or problem gambling.
1136
(4) Designated electronic gaming machine areas may be
1137
located within the current live gaming facility or an existing
1138
building that is contiguous and connected to the live gaming
1139
facility. If such gaming area is to be located in a building that
1140
is not yet constructed, the new building must be contiguous and
1141
connected to the live gaming facility.
1142
(5) An electronic gaming machine licensee shall provide
1143
adequate office space at no cost to the division and the
1144
Department of Law Enforcement for the oversight of electronic
1145
gaming machine operations. The division shall adopt rules
1146
establishing criteria for adequate space, configuration, and
1147
location and needed electronic and technological requirements.
1148
Section 15. Days and hours of operation.--Electronic gaming
1149
machine areas may be open daily throughout the year. They may be
1150
open a cumulative total of 18 hours per day on Monday through
1151
Friday and 24 hours per day on Saturday and Sunday and on
1152
holidays specified in s. 110.117(1), Florida Statutes.
1153
Section 16. Penalties.--The division may revoke or suspend
1154
an electronic gaming machine license issued under this act upon
1155
the willful violation by the licensee of any provision of this
1156
act or rule adopted under this act. In lieu of suspending or
1157
revoking an electronic gaming machine license, the division may
1158
impose a civil penalty against the licensee for such violation.
1159
Except as otherwise provided in this act, the division may not
1160
impose a penalty that exceeds $100,000 for each count or separate
1161
offense. All fines collected must be deposited into the Pari-
1162
mutuel Wagering Trust Fund of the Department of Business and
1163
Professional Regulation.
1164
Section 17. Compulsive or addictive gambling prevention
1165
program.--
1166
(1) Each electronic gaming machine licensee shall offer
1167
training to employees on responsible gaming and shall work with a
1168
compulsive or addictive gambling prevention program to recognize
1169
problem gaming situations and implement responsible gaming
1170
programs and practices.
1171
(2) The division shall, subject to competitive bidding,
1172
contract for services related to the prevention of compulsive and
1173
addictive gambling. The contract shall require an advertising
1174
program to encourage responsible gaming practices and publicize a
1175
gambling telephone help line. Such advertisements must be made
1176
both publicly and inside the designated electronic gaming machine
1177
areas of the licensee's facilities. The terms of any contract for
1178
such services shall include accountability standards for any
1179
private provider. The failure of a private provider to meet any
1180
material term of the contract, including the accountability
1181
standards, constitutes a breach of contract or grounds for
1182
nonrenewal.
1183
(3) The compulsive or addictive gambling prevention program
1184
shall be funded from an annual nonrefundable regulatory fee of
1185
$250,000 paid by each licensee.
1186
Section 18. Caterer's license.--An electronic gaming
1187
machine licensee is entitled to a caterer's license pursuant to
1188
s. 565.02, Florida Statutes, on days on which the pari-mutuel
1189
facility is open to the public for electronic gaming machine
1190
play.
1191
Section 19. Prohibited activities and devices;
1192
exceptions.--
1193
(1) Complimentary or reduced-cost alcoholic beverages may
1194
not be served to persons in the designated electronic gaming
1195
machine area. Alcoholic beverages served to persons in the
1196
designated electronic gaming machine area shall cost at least the
1197
same amount as alcoholic beverages served to the general public
1198
at any bar within the facility.
1199
(2) An electronic gaming machine licensee may not make
1200
loans, provide credit, or advance cash to enable a person to play
1201
an electronic gaming machine. This subsection does not prohibit
1202
automated ticket redemption machines that dispense cash from the
1203
redemption of tickets from being located in the designated
1204
electronic gaming machine area.
1205
(3) An automated teller machine or similar device designed
1206
to provide credit or dispense cash may not be located within the
1207
designated electronic gaming machine area of a facility of an
1208
electronic gaming machine licensee.
1209
(4)(a) An electronic gaming machine licensee may not accept
1210
or cash a check from any person within the designated electronic
1211
gaming machine area of a facility.
1212
(b) Except as provided in paragraph (c) for employees of
1213
the facility, an electronic gaming machine licensee may not
1214
accept or cash for any person within the facility a government-
1215
issued check, third-party check, or payroll check made payable to
1216
an individual.
1217
(c) Outside the designated electronic gaming machine area,
1218
an electronic gaming machine licensee or operator may accept or
1219
cash a check for an employee of the facility who is prohibited
1220
from wagering on an electronic gaming machine under s.
1221
551.108(5), Florida Statutes, a check made directly payable to a
1222
person licensed by the division, or a check made directly payable
1223
to the licensee or operator from:
1224
1. A pari-mutuel patron; or
1225
2. A pari-mutuel facility in any state.
1226
(d) Unless accepting or cashing a check is prohibited by
1227
this subsection, an electronic gaming machine licensee or
1228
operator may accept and deposit in its accounts checks received
1229
in the normal course of business.
1230
(5) An electronic gaming machine, or the computer operating
1231
system linking the electronic gaming machine, may be linked to
1232
any other electronic gaming machine or computer operating system
1233
within this state.
1234
(6) An electronic gaming machine located within a licensed
1235
facility may accept tickets or electronic or account-based cards
1236
for wagering and return or may deliver payouts to the players in
1237
the form of tickets or electronic or account-based credits that
1238
may be exchanged for cash, merchandise, or other items of value.
1239
The use of coins, currency, credit or debit cards, tokens, or
1240
similar objects is prohibited.
1241
Section 20. Rulemaking.--The division may adopt rules
1243
administer this act.
1244
Section 21. The Legislature finds and declares that it has
1245
exclusive authority over the conduct of all wagering occurring at
1246
electronic gaming machine facilities in this state. Only the
1247
Division of Pari-mutuel Wagering and other authorized state
1248
agencies may administer this act and regulate the electronic
1249
gaming machine industry, including operation of electronic gaming
1250
machine facilities, games, electronic gaming machines, and
1251
facilities-based computer systems authorized in this act and the
1252
rules adopted by the division.
1253
Section 22. This act does not apply to the use of player-
1254
operated bingo aides used in bingo games conducted by charitable,
1255
nonprofit, or veterans' organizations authorized to conduct bingo
1256
under s. 849.0931, Florida Statutes, and this act does not apply
1257
to game promotions or operators regulated under s. 849.094,
1258
Florida Statutes.
1259
Section 23. Paragraph (w) is added to subsection (1) of
1260
section 215.22, Florida Statutes, to read:
1261
215.22 Certain income and certain trust funds exempt.--
1262
(1) The following income of a revenue nature or the
1263
following trust funds shall be exempt from the appropriation
1264
required by s. 215.20(1):
1265
(w) Taxes imposed on electronic gaming and electronic
1266
gaming machines at eligible pari-mutuel facilities.
1267
Section 24. Subsection (11) of section 550.002, Florida
1268
Statutes, is amended to read:
1269
550.002 Definitions.--As used in this chapter, the term:
1270
(11) "Full schedule of live racing or games" means, for a
1271
greyhound or jai alai permitholder, the conduct of a combination
1272
of at least 100 live evening or matinee performances during the
1273
preceding year; for a permitholder who has a converted permit or
1274
filed an application on or before June 1, 1990, for a converted
1275
permit, the conduct of a combination of at least 100 live evening
1276
and matinee wagering performances during either of the 2
1277
preceding years; for a jai alai permitholder who does not operate
1278
slot machines or an electronic gaming machine in its pari-mutuel
1279
facility, who has conducted at least 100 live performances per
1280
year for at least 10 years after December 31, 1992, and whose
1281
handle on live jai alai games conducted at its pari-mutuel
1282
facility has been less than $4 million per state fiscal year for
1283
at least 2 consecutive years after June 30, 1992, the conduct of
1284
a combination of at least 40 live evening or matinee performances
1285
during the preceding year; for a jai alai permitholder who
1286
operates slot machines in its pari-mutuel facility, the conduct
1287
of a combination of at least 150 performances during the
1288
preceding year; for a harness permitholder, the conduct of at
1289
least 100 live regular wagering performances during the preceding
1290
year; for a quarter horse permitholder, the conduct of at least
1291
40 live regular wagering performances during the preceding year;
1292
and for a thoroughbred permitholder, the conduct of at least 40
1293
live regular wagering performances during the preceding year. For
1294
a permitholder which is restricted by statute to certain
1295
operating periods within the year when other members of its same
1296
class of permit are authorized to operate throughout the year,
1297
the specified number of live performances which constitute a full
1298
schedule of live racing or games shall be adjusted pro rata in
1299
accordance with the relationship between its authorized operating
1300
period and the full calendar year and the resulting specified
1301
number of live performances shall constitute the full schedule of
1302
live games for such permitholder and all other permitholders of
1303
the same class within 100 air miles of such permitholder. A live
1304
performance must consist of no fewer than eight races or games
1305
conducted live for each of a minimum of three performances each
1306
week at the permitholder's licensed facility under a single
1307
admission charge.
1308
Section 25. Subsection (2) of section 849.15, Florida
1309
Statutes, is amended to read:
1310
849.15 Manufacture, sale, possession, etc., of coin-
1311
operated devices prohibited.--
1312
(2) Pursuant to section 2 of that chapter of the Congress
1313
of the United States entitled "An act to prohibit transportation
1314
of gaming devices in interstate and foreign commerce," approved
1315
January 2, 1951, being ch. 1194, 64 Stat. 1134, and also
1316
designated as 15 U.S.C. ss. 1171-1177, the State of Florida,
1317
acting by and through the duly elected and qualified members of
1318
its Legislature, does hereby in this section, and in accordance
1319
with and in compliance with the provisions of section 2 of such
1320
chapter of Congress, declare and proclaim that any county of the
1321
State of Florida within which slot machine gaming is authorized
1322
pursuant to chapter 551 or electronic gaming is authorized is
1323
exempt from the provisions of section 2 of that chapter of the
1324
Congress of the United States entitled "An act to prohibit
1325
transportation of gaming devices in interstate and foreign
1326
commerce," designated as 15 U.S.C. ss. 1171-1177, approved
1327
January 2, 1951. All shipments of gaming devices, including slot
1328
machines and electronic gaming machines, into any county of this
1329
state within which slot machine gaming is authorized pursuant to
1330
chapter 551 or electronic gaming is authorized at eligible pari-
1331
mutuel facilities and the registering, recording, and labeling of
1332
which have been duly performed by the manufacturer or distributor
1333
thereof in accordance with sections 3 and 4 of that chapter of
1334
the Congress of the United States entitled "An act to prohibit
1335
transportation of gaming devices in interstate and foreign
1336
commerce," approved January 2, 1951, being ch. 1194, 64 Stat.
1337
1134, and also designated as 15 U.S.C. ss. 1171-1177, shall be
1338
deemed legal shipments thereof into this state provided the
1339
destination of such shipments is an eligible slot machine
1340
facility as defined in s. 551.102, an eligible electronic gaming
1341
machine facility, a certified educational facility, or the
1342
facility of a slot machine manufacturer or slot machine
1343
distributor as provided in s. 551.109(2)(a), a certified
1344
educational facility, or the facility of an electronic gaming
1345
machine manufacturer or electronic gaming machine distributor
1346
authorized to possess electronic gaming machines as provided in
1347
the act authorizing electronic gaming machines at eligible pari-
1348
mutuel facilities.
1349
Section 26. Subsections (1) and (2) of section 895.02,
1350
Florida Statutes, are amended to read:
1352
term:
1353
(1) "Racketeering activity" means to commit, to attempt to
1354
commit, to conspire to commit, or to solicit, coerce, or
1355
intimidate another person to commit:
1356
(a) Any crime that is chargeable by indictment or
1357
information under the following provisions of the Florida
1358
Statutes:
1359
1. Section 210.18, relating to evasion of payment of
1360
cigarette taxes.
1361
2. Section 403.727(3)(b), relating to environmental
1362
control.
1364
fraud.
1365
4. Section 414.39, relating to public assistance fraud.
1367
compensation.
1368
6. Section 443.071(4), relating to creation of a fictitious
1369
employer scheme to commit unemployment compensation fraud.
1370
7. Section 465.0161, relating to distribution of medicinal
1371
drugs without a permit as an Internet pharmacy.
1373
499.0691, relating to crimes involving contraband and adulterated
1374
drugs.
1375
9. Part IV of chapter 501, relating to telemarketing.
1376
10. Chapter 517, relating to sale of securities and
1377
investor protection.
1379
to dogracing and horseracing.
1380
12. Chapter 550, relating to jai alai frontons.
1381
13. Section 551.109, relating to slot machine gaming.
1382
14. Chapter 552, relating to the manufacture, distribution,
1383
and use of explosives.
1384
15. Chapter 560, relating to money transmitters, if the
1385
violation is punishable as a felony.
1386
16. Chapter 562, relating to beverage law enforcement.
1387
17. Section 624.401, relating to transacting insurance
1388
without a certificate of authority, s. 624.437(4)(c)1., relating
1389
to operating an unauthorized multiple-employer welfare
1390
arrangement, or s. 626.902(1)(b), relating to representing or
1391
aiding an unauthorized insurer.
1392
18. Section 655.50, relating to reports of currency
1393
transactions, when such violation is punishable as a felony.
1394
19. Chapter 687, relating to interest and usurious
1395
practices.
1397
real estate timeshare plans.
1398
21. Chapter 782, relating to homicide.
1399
22. Chapter 784, relating to assault and battery.
1400
23. Chapter 787, relating to kidnapping or human
1401
trafficking.
1402
24. Chapter 790, relating to weapons and firearms.
1405
trafficking.
1406
26. Chapter 806, relating to arson.
1407
27. Section 810.02(2)(c), relating to specified burglary of
1408
a dwelling or structure.
1409
28. Chapter 812, relating to theft, robbery, and related
1410
crimes.
1411
29. Chapter 815, relating to computer-related crimes.
1412
30. Chapter 817, relating to fraudulent practices, false
1413
pretenses, fraud generally, and credit card crimes.
1414
31. Chapter 825, relating to abuse, neglect, or
1415
exploitation of an elderly person or disabled adult.
1416
32. Section 827.071, relating to commercial sexual
1417
exploitation of children.
1418
33. Chapter 831, relating to forgery and counterfeiting.
1419
34. Chapter 832, relating to issuance of worthless checks
1420
and drafts.
1421
35. Section 836.05, relating to extortion.
1422
36. Chapter 837, relating to perjury.
1423
37. Chapter 838, relating to bribery and misuse of public
1424
office.
1425
38. Chapter 843, relating to obstruction of justice.
1427
s. 847.07, relating to obscene literature and profanity.
1429
849.25, relating to gambling.
1430
41. Chapter 874, relating to criminal street gangs.
1431
42. Chapter 893, relating to drug abuse prevention and
1432
control.
1433
43. Chapter 896, relating to offenses related to financial
1434
transactions.
1436
a witness, victim, or informant, and retaliation against a
1437
witness, victim, or informant.
1439
jurors and evidence.
1440
46. Provisions of law relating to electronic gaming and
1441
electronic gaming machines at eligible pari-mutuel facilities.
1442
(b) Any conduct defined as "racketeering activity" under 18
1443
U.S.C. s. 1961(1).
1444
(2) "Unlawful debt" means any money or other thing of value
1445
constituting principal or interest of a debt that is legally
1446
unenforceable in this state in whole or in part because the debt
1447
was incurred or contracted:
1448
(a) In violation of any one of the following provisions of
1449
law:
1451
to dogracing and horseracing.
1452
2. Chapter 550, relating to jai alai frontons.
1453
3. Section 551.109, relating to slot machine gaming.
1454
4. Chapter 687, relating to interest and usury.
1456
849.25, relating to gambling.
1457
6. Provisions of law relating to electronic gaming and
1458
electronic gaming machines at eligible pari-mutuel facilities.
1459
(b) In gambling activity in violation of federal law or in
1460
the business of lending money at a rate usurious under state or
1461
federal law.
1462
Section 27. (1) ____ full-time equivalent positions are
1463
authorized, and the sums of $_______ in recurring funds and
1464
$_______ in nonrecurring funds for the 2008-2009 fiscal year are
1465
appropriated from the Pari-mutuel Wagering Trust Fund of the
1466
Department of Business and Professional Regulation for the
1467
purpose of carrying out all regulatory activities provided in
1468
this act. The Executive Office of the Governor shall place these
1469
funds and positions in reserve until the Department of Business
1470
and Professional Regulation submits an expenditure plan for
1471
approval to the Executive Office of the Governor and the chair
1472
and vice chair of the Legislative Budget Commission in accordance
1473
with the provisions of s. 216.177, Florida Statutes.
1474
(2) The sums of $_______ in recurring funds and $_______ in
1475
nonrecurring funds for the 2008-2009 fiscal year are appropriated
1476
from the Pari-mutuel Wagering Trust Fund of the Department of
1477
Business and Professional Regulation for transfer to the
1478
Department of Law Enforcement for the purpose of investigations,
1479
intelligence gathering, background investigations, and any other
1480
responsibilities as provided in this act. ____ full-time
1481
equivalent positions are authorized, and the sums of $ _______ in
1482
recurring funds and $ _______ in nonrecurring funds for the 2008-
1483
2009 fiscal year are appropriated from the Operating Trust Fund
1484
of the Department of Law Enforcement for the purpose of
1485
investigations, intelligence gathering, background
1486
investigations, and any other responsibilities as provided in
1487
this act. The Executive Office of the Governor shall place such
1488
funds and positions in reserve until the Department of Law
1489
Enforcement submits an expenditure plan for approval to the
1490
Executive Office of the Governor and the chair and vice chair of
1491
the Legislative Budget Commission in accordance with the
1492
provisions of s. 216.177, Florida Statutes.
1493
(3) The sum of $1 million is appropriated annually from the
1494
Pari-mutuel Wagering Trust Fund of the Department of Business and
1495
Professional Regulation from revenues received pursuant to s.
1496
551.118, Florida Statutes, for contract services related to the
1497
prevention of compulsive and addictive gambling.
1498
Section 28. The Department of Business and Professional
1499
Regulation may expend the unreserved cash balance in the Pari-
1500
mutuel Wagering Trust Fund received from other revenue sources to
1501
implement electronic gaming regulation and investigations during
1502
fiscal year 2008-2009. Beginning as soon as is practicable, but
1503
no later than the 2009-2010 fiscal year, the department shall
1504
initiate repayment of such funds with electronic gaming machine
1505
license revenue sources until the full amount is reimbursed. The
1506
department shall submit a repayment plan for approval to the
1507
Executive Office of the Governor and the chair and vice chair of
1508
the Legislative Budget Commission in accordance with the
1509
provisions of s. 216.177, Florida Statutes. The repaid funds
1510
shall be subject to the requirements of s. 550.135(2), Florida
1511
Statutes.
1512
Section 29. This act shall take effect upon becoming a law.
CODING: Words stricken are deletions; words underlined are additions.