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A bill to be entitled

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An act relating to pari-mutuel wagering; amending s.

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550.002, F.S.; providing for a full schedule of racing for

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quarter horse permitholders; amending s. 550.334, F.S.;

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removing provisions requiring an application to the

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Division of Pari-mutuel Wagering for a permit to conduct

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quarter horse race meetings; removing provisions for

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granting a license to conduct quarter horse racing;

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removing a provision for governance and control of quarter

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horse racing; removing a requirement for intertrack

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wagering to be conducted by a quarter horse permitholder;

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providing for a grandfather clause; amending s. 849.086,

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F.S.; providing for a full schedule of races for a new

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permitholder to be eligible to renew a cardroom license;

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amending s. 550.26165, F.S.; authorizing the payment of

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certain breeders' and stallion awards under certain

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circumstances; amending s. 550.2625, F.S.; providing that

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the provisions of statute governing certain owners' awards

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shall govern in the absence of a written agreement;

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amending s. 550.5251, F.S.; providing an exception to the

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requirement that each thoroughbred permitholder run an

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average of one race per racing day against horses bred in

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this state that have preference over nonstate horses;

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providing an effective date.

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

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     Section 1.  Subsection (11) of section 550.002, Florida

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Statutes, is amended to read:

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     550.002  Definitions.--As used in this chapter, the term:

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     (11)  "Full schedule of live racing or games" means, for a

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greyhound or jai alai permitholder, the conduct of a combination

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of at least 100 live evening or matinee performances during the

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preceding year; for a permitholder who has a converted permit or

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filed an application on or before June 1, 1990, for a converted

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permit, the conduct of a combination of at least 100 live evening

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and matinee wagering performances during either of the 2

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preceding years; for a jai alai permitholder who does not operate

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slot machines in its pari-mutuel facility, who has conducted at

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least 100 live performances per year for at least 10 years after

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December 31, 1992, and whose handle on live jai alai games

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conducted at its pari-mutuel facility has been less than $4

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million per state fiscal year for at least 2 consecutive years

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after June 30, 1992, the conduct of a combination of at least 40

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live evening or matinee performances during the preceding year;

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for a jai alai permitholder who operates slot machines in its

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pari-mutuel facility, the conduct of a combination of at least

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150 performances during the preceding year; for a harness

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permitholder, the conduct of at least 100 live regular wagering

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performances during the preceding year; for a quarter horse

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permitholder, at its facility unless an alternative schedule of

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at least 20 live regular wagering performances is agreed upon by

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the permitholder and the horsemen's association representing the

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majority of the quarter racehorse owners and trainers at the

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facility and filed with the division with its annual date

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application, in the year 2009, the conduct of at least 20 live

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regular wagering performances, in the years 2010 and 2011, the

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conduct of at least 30 live regular wagering performances, and

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for every year after the year 2011, the conduct of at least 40

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live regular wagering performances during the preceding year; for

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a quarter horse permitholder leasing another licensed racetrack,

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the conduct of 160 events at the leased facility; and for a

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thoroughbred permitholder, the conduct of at least 40 live

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regular wagering performances during the preceding year. For a

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permitholder which is restricted by statute to certain operating

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periods within the year when other members of its same class of

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permit are authorized to operate throughout the year, the

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specified number of live performances which constitute a full

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schedule of live racing or games shall be adjusted pro rata in

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accordance with the relationship between its authorized operating

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period and the full calendar year and the resulting specified

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number of live performances shall constitute the full schedule of

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live games for such permitholder and all other permitholders of

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the same class within 100 air miles of such permitholder. A live

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performance must consist of no fewer than eight races or games

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conducted live for each of a minimum of three performances each

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week at the permitholder's licensed facility under a single

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admission charge.

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     Section 2.  Section 550.334, Florida Statutes, is amended to

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read:

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     550.334  Quarter horse racing; substitutions.--

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     (1) Subject to all the applicable provisions of this

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chapter, any person who possesses the qualifications prescribed

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in this chapter may apply to the division for a permit to conduct

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quarter horse race meetings and racing under this chapter. The

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applicant must demonstrate that the location or locations where

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the permit will be used are available for such use and that she

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or he has the financial ability to satisfy the reasonably

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anticipated operational expenses of the first racing year

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following final issuance of the permit. If the racing facility is

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already built, the application must contain a statement, with

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reasonable supporting evidence, that the permit will be used for

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quarter horse racing within 1 year after the date on which it is

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granted; if the facility is not already built, the application

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must contain a statement, with reasonable supporting evidence,

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that substantial construction will be started within 1 year after

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the issuance of the permit. After receipt of an application, the

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division shall convene to consider and act upon permits applied

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for. The division shall disapprove an application if it fails to

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meet the requirements of this chapter. Upon each application

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filed and approved, a permit shall be issued setting forth the

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name of the applicant and a statement showing qualifications of

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the applicant to conduct racing under this chapter. If a

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favorable referendum on a pari-mutuel facility has not been held

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previously within the county, then, before a quarter horse permit

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may be issued by the division, a referendum ratified by a

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majority of the electors in the county is required on the

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question of allowing quarter horse races within that county.

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     (2) After a quarter horse racing permit has been granted by

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the division, the department shall grant to the lawful holder of

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such permit, subject to the conditions of this section, a license

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to conduct quarter horse racing under this chapter; and the

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division shall fix annually the time when, place where, and

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number of days upon which racing may be conducted by such quarter

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horse racing permitholder. After the first license has been

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issued to the holder of a permit for quarter horse racing, all

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subsequent annual applications for a license by a permitholder

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must be accompanied by proof, in such form as the division

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requires, that the permitholder still possesses all the

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qualifications prescribed by this chapter. The division may

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revoke any permit or license issued under this section upon the

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willful violation by the licensee of any provision of this

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chapter or any rule adopted by the division under this chapter.

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The division shall revoke any quarter horse permit under which no

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live racing has ever been conducted before July 7, 1990, for

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failure to conduct a horse meet pursuant to the license issued

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where a full schedule of horseracing has not been conducted for a

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period of 18 months commencing on October 1, 1990, unless the

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permitholder has commenced construction on a facility at which a

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full schedule of live racing could be conducted as approved by

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the division. "Commenced construction" means initiation of and

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continuous activities beyond site preparation associated with

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erecting or modifying a horseracing facility, including

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procurement of a building permit applying the use of approved

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construction documents, proof of an executed owner/contractor

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agreement or an irrevocable or binding forced account, and actual

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undertaking of foundation forming with steel installation and

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concrete placing. The 18-month period shall be extended by the

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division, to the extent that the applicant demonstrates to the

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satisfaction of the division that good faith commencement of the

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construction of the facility is being delayed by litigation or by

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governmental action or inaction with respect to regulations or

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permitting precluding commencement of the construction of the

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facility.

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     (1)(3) The operator of any licensed racetrack is authorized

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to lease such track to any quarter horse racing permitholder for

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the conduct of quarter horse racing under this chapter.

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     (4) Section 550.054 is inapplicable to quarter horse racing

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as permitted under this section. All other provisions of this

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chapter apply to, govern, and control such racing, and the same

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must be conducted in compliance therewith.

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     (2)(5) Quarter horses participating in such races must be

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duly registered by the American Quarter Horse Association, and

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before each race such horses must be examined and declared in fit

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condition by a qualified person designated by the division.

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     (3)(6) Any quarter horse racing days permitted under this

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chapter are in addition to any other racing permitted under the

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license issued the track where such quarter horse racing is

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conducted.

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     (4)(7)(a) Any quarter horse racing permitholder operating

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under a valid permit issued by the division is authorized to

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substitute races of other breeds of horses, except thoroughbreds,

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which are, respectively, registered with the American Paint Horse

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Association, Appaloosa Horse Club, Arabian Horse Registry of

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America, Palomino Horse Breeders of America, or United States

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Trotting Association, for no more than 50 percent of the quarter

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horse races daily, and may substitute races of thoroughbreds

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registered with the Jockey Club for no more than 50 percent of

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the quarter horse races daily with the written consent of all

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greyhound, harness, and thoroughbred permitholders whose pari-

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mutuel facilities are located within 50 air miles of such quarter

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horse racing permitholder's pari-mutuel facility.

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     (b)  Any permittee operating within an area of 50 air miles

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of a licensed thoroughbred track may not substitute thoroughbred

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races under this section while a thoroughbred horse race meet is

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in progress within that 50 miles. Any permittee operating within

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an area of 125 air miles of a licensed thoroughbred track may not

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substitute live thoroughbred races under this section while a

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thoroughbred permittee who pays taxes under s. 550.09515(2)(a) is

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conducting a thoroughbred meet within that 125 miles. These

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mileage restrictions do not apply to any permittee that holds a

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nonwagering permit issued pursuant to s. 550.505.

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     (5)(8) A quarter horse permit issued pursuant to this

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section is not eligible for transfer or conversion to another

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type of pari-mutuel operation.

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     (6)(9) Any nonprofit corporation, including, but not

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limited to, an agricultural cooperative marketing association,

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organized and incorporated under the laws of this state may apply

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for a quarter horse racing permit and operate racing meets under

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such permit, provided all pari-mutuel taxes and fees applicable

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to such racing are paid by the corporation. However, insofar as

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its pari-mutuel operations are concerned, the corporation shall

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be considered to be a corporation for profit and is subject to

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taxation on all property used and profits earned in connection

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with its pari-mutuel operations.

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     (10) Intertrack wagering shall not be authorized for any

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quarter horse permitholder without the written consent of all

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greyhound, harness, and thoroughbred permitholders whose pari-

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mutuel facilities are located within 50 air miles of such quarter

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horse permitholder's pari-mutuel facility.

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     Section 3. A person submitting a quarter horse permit

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application to the Division of Pari-mutuel Wagering before March

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30, 2008, is subject to the criteria for approval of a quarter

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horse permit which was in existence before July 1, 2008.

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     Section 4.  Paragraphs (a) and (b) of subsection (5) of

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section 849.086, Florida Statutes, are amended to read:

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     849.086  Cardrooms authorized.--

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

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operate a cardroom in this state unless such person holds a valid

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cardroom license issued pursuant to this section.

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     (a)  Only those persons holding a valid cardroom license

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issued by the division may operate a cardroom. A cardroom license

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may only be issued to a licensed pari-mutuel permitholder and an

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authorized cardroom may only be operated at the same facility at

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which the permitholder is authorized under its valid pari-mutuel

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wagering permit to conduct pari-mutuel wagering activities. An

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initial cardroom license shall only be issued to a pari-mutuel

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permitholder if the permitholder is licensed to conduct a full

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schedule of live races or games as defined in s. 550.002(11)

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during the state fiscal year in which the initial cardroom

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license is issued.

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     (b)  After the initial cardroom license is granted, the

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application for the annual license renewal shall be made in

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conjunction with the applicant's annual application for its pari-

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mutuel license. If a permitholder has operated a cardroom during

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any of the 3 previous fiscal years and fails to include a renewal

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request for the operation of the cardroom in its annual

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application for license renewal, the permitholder may amend its

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annual application to include operation of the cardroom. In order

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for a cardroom license to be renewed the applicant must have

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requested, as part of its pari-mutuel annual license application,

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to conduct at least 90 percent of the total number of live

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performances conducted by such permitholder during either the

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state fiscal year in which its initial cardroom license was

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issued, or the state fiscal year immediately prior thereto if the

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permitholder ran at least a full schedule of live races or games

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in that prior year. If the application is for a harness

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permitholder cardroom, the applicant must have requested

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authorization to conduct a minimum of 140 live performances

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during the state fiscal year immediately prior thereto. If more

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than one permitholder is operating at a facility, each

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permitholder must have applied for a license to conduct a full

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schedule of live racing.

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     Section 5.  Subsection (5) is added to section 550.26165,

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Florida Statutes, to read:

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     550.26165  Breeders' awards.--

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     (5) The Legislature recognizes that this state is competing

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with other states to attract thoroughbred breeding and training

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operations. The awards programs created in this chapter are

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intended to encourage such operations to locate in this state and

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must be responsive to rapidly changing programs in other states.

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Therefore the Legislature finds that it is appropriate to provide

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greater flexibility to thoroughbred industry participants in this

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state so that they may design an awards program that is

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competitive nationally. To achieve that end notwithstanding any

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other provision of law:

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     (a) The Florida Thoroughbred Breeders' Association may

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elect, as part of its annual plan, to pay breeders' awards on

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horses finishing in first, second, or third place in thoroughbred

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horse races; to pay breeders' awards that are greater than 20

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percent and less than 15 percent of the announced gross purse;

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and to vary the rates for breeders' awards based upon the place

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of finish, class of race, the state or country in which the race

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took place, and the state in which the stallion siring the horse

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was standing when the horse was conceived.

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     (b) The Florida Thoroughbred Breeders' Association may

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elect, as part of its annual plan, to pay stallion awards on

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horses finishing in first, second, or third place in thoroughbred

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horse races; to pay stallion awards that are greater than 20

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percent and less than 15 percent of the announced gross purse; to

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reduce or eliminate stallion awards in order to enhance breeders'

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awards or awards under paragraph (c); and to vary the rates for

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stallion awards based upon the place of finish, class of race,

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and the state or country in which the race took place.

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     (c) From the funds dedicated in this chapter for use as

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breeders' awards and stallion awards, the Florida Thoroughbred

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Breeders' Association may elect, as part of its annual plan, to

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pay awards to owners of registered Florida-bred horses finishing

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in first, second, or third place in thoroughbred horse races in

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this state without regard to awards that may be paid pursuant to

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s. 550.2625(6).

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     (d) A breeders' award or stallion award under this chapter

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may not be paid on thoroughbred horse races taking place in other

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states or countries unless agreed to in writing by all

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thoroughbred permitholders in this state, the Florida

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Thoroughbred Breeders' Association, and the Florida Horsemen's

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Benevolent and Protective Association.

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     Section 6.  Paragraph (e) is added to subsection (6) of

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section 550.2625, Florida Statutes, to read:

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     550.2625  Horseracing; minimum purse requirement, Florida

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breeders' and owners' awards.--

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     (6)

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     (e) The provisions of this subsection govern owners' awards

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paid on thoroughbred horse races in this state in the absence of

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a written agreement on file with the division establishing the

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rate, procedure, and eligibility requirements for owners' awards,

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including place of finish, class of race, maximum purse, and

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maximum award entered into by the permitholder, the Florida

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Thoroughbred Breeders' Association, and the association

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representing a majority of the racehorse owners and trainers at

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the permitholder's location.

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     Section 7.  Paragraph (a) of subsection (5) of section

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550.5251, Florida Statutes, is amended to read:

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     550.5251  Florida thoroughbred racing; certain permits;

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operating days.--

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     (5)(a)  Each licensed thoroughbred permitholder in this

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state must run an average of one race per racing day in which

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horses bred in this state and duly registered with the Florida

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Thoroughbred Breeders' Association have preference as entries

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over non-Florida-bred horses unless otherwise agreed to in

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writing by the permitholder, the Florida Thoroughbred Breeders'

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Association, and the association representing a majority of the

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thoroughbred racehorse owners and trainers at that location. All

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licensed thoroughbred racetracks shall write the conditions for

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such races in which Florida-bred horses are preferred so as to

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assure that all Florida-bred horses available for racing at such

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tracks are given full opportunity to run in the class of races

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for which they are qualified. The opportunity of running must be

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afforded to each class of horses in the proportion that the

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number of horses in this class bears to the total number of

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Florida-bred horses available. A track is not required to write

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conditions for a race to accommodate a class of horses for which

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a race would otherwise not be run at the track during its

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meeting.

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     Section 8.  This act shall take effect July 1, 2008.