HB 7145

1	A bill to be entitled
2	An act relating to pari-mutuel permitholders; amending s.
3	550.002, F.S.; revising the definition of the term "full
4	schedule of live racing or games" in reference to quarter
5	horse permitholders; amending s. 550.334, F.S.; revising
6	provisions for permits to conduct quarter horse race
7	meetings; removing provisions for application to the
8	Division of Pari-mutuel Wagering for a permit to conduct
9	quarter horse race meetings; removing provisions for
10	granting a license to conduct quarter horse racing;
11	removing a provision for governance and control of quarter
12	horse racing; revising authorization to substitute races
13	of other breeds of horses; providing for an exception to a
14	prohibition against the transfer or conversion of a
15	quarter horse permit; providing requirements for a quarter
16	horse racing permitholder to be eligible to conduct
17	intertrack wagering; providing requirements for a quarter
18	horse racing permitholder to be eligible to operate a
19	cardroom; removing certain provisions restricting
20	intertrack wagering; creating s. 550.3345, F.S.; providing
21	for the transfer of a quarter horse racing permit to a
22	not-for-profit corporation; providing for membership and
23	purpose of such corporation; providing for conversion of
24	such permit to a limited thoroughbred permit; requiring
25	net revenues derived by the not-for-profit corporation to
26	be used for certain purposes relating to the thoroughbred
27	horse racing industry; prohibiting live racing in certain
28	locations during certain times; providing licensure
29	requirements; providing for a change in location of the
30	permit; prohibiting transfer of the converted permit;
31	providing for application of state law to the permit and
32	the corporation; providing an exception to certain
33	provisions for failure to pay tax on handle; amending s.
34	551.106, F.S.; revising the license fee and tax rate for
35	slot machine licensees; providing for minimum tax revenue
36	from operation of slot machines; amending s. 849.086,
37	F.S.; revising requirements for initial issuance of a
38	cardroom license; requiring the permitholder to be
39	licensed to conduct a full schedule of live racing or
40	games during the state fiscal year in which the initial
41	cardroom license is issued; permitting cardroom operators
42	to operate 24 hours per day; increasing certain wager and
43	buy-in limits; permitting charity tournaments under
44	certain conditions; providing effective dates, including a
45	contingent effective date.
46
47	Be It Enacted by the Legislature of the State of Florida:
48
49	Section 1.  Subsection (11) of section 550.002, Florida
50	Statutes, is amended to read:
51	550.002  Definitions.--As used in this chapter, the term:
52	(11)  "Full schedule of live racing or games" means, for a
53	greyhound or jai alai permitholder, the conduct of a combination
54	of at least 100 live evening or matinee performances during the
55	preceding year; for a permitholder who has a converted permit or
56	filed an application on or before June 1, 1990, for a converted
57	permit, the conduct of a combination of at least 100 live
58	evening and matinee wagering performances during either of the 2
59	preceding years; for a jai alai permitholder who does not
60	operate slot machines in its pari-mutuel facility, who has
61	conducted at least 100 live performances per year for at least
62	10 years after December 31, 1992, and whose handle on live jai
63	alai games conducted at its pari-mutuel facility has been less
64	than $4 million per state fiscal year for at least 2 consecutive
65	years after June 30, 1992, the conduct of a combination of at
66	least 40 live evening or matinee performances during the
67	preceding year; for a jai alai permitholder who operates slot
68	machines in its pari-mutuel facility, the conduct of a
69	combination of at least 150 performances during the preceding
70	year; for a harness permitholder, the conduct of at least 100
71	live regular wagering performances during the preceding year;
72	for a quarter horse permitholder conducting live regular
73	wagering performances at its facility, the conduct of at least
74	20 live regular wagering performances in state fiscal year 2010-
75	2011, the conduct of at least 30 live regular wagering
76	performances in state fiscal year 2011-2012 and in state fiscal
77	year 2012-2013, and the conduct of at least 40 live regular
78	wagering performances in state fiscal year 2013-2014 and every
79	state fiscal year thereafter, or for a quarter horse
80	permitholder conducting live regular wagering performances at
81	its facility, an alternative schedule of at least 20 live
82	regular wagering performances may be substituted if agreed to by
83	the permitholder and either the Florida Quarter Horse Racing
84	Association or the horsemen's association representing the
85	majority of the horse owners and trainers at the facility and
86	filed with the division with the permitholder's annual date
87	application; for a quarter horse permitholder leasing another
88	licensed racetrack, the conduct of 160 events at the leased
89	facility during the preceding year; and for a thoroughbred
90	permitholder, the conduct of at least 40 live regular wagering
91	performances during the preceding year. For a permitholder which
92	is restricted by statute to certain operating periods within the
93	year when other members of its same class of permit are
94	authorized to operate throughout the year, the specified number
95	of live performances which constitute a full schedule of live
96	racing or games shall be adjusted pro rata in accordance with
97	the relationship between its authorized operating period and the
98	full calendar year and the resulting specified number of live
99	performances shall constitute the full schedule of live games
100	for such permitholder and all other permitholders of the same
101	class within 100 air miles of such permitholder. A live
102	performance must consist of no fewer than eight races or games
103	conducted live for each of a minimum of three performances each
104	week at the permitholder's licensed facility under a single
105	admission charge.
106	Section 2.  Section 550.334, Florida Statutes, is amended
107	to read:
108	550.334  Quarter horse racing; substitutions.--
109	(1)  Subject to all the applicable provisions of this
110	chapter, any person who possesses the qualifications prescribed
111	in this chapter may apply to the division for a permit to
112	conduct quarter horse race meetings and racing under this
113	chapter. The applicant must demonstrate that the location or
114	locations where the permit will be used are available for such
115	use and that she or he has the financial ability to satisfy the
116	reasonably anticipated operational expenses of the first racing
117	year following final issuance of the permit. If the racing
118	facility is already built, the application must contain a
119	statement, with reasonable supporting evidence, that the permit
120	will be used for quarter horse racing within 1 year after the
121	date on which it is granted; if the facility is not already
122	built, the application must contain a statement, with reasonable
123	supporting evidence, that substantial construction will be
124	started within 1 year after the issuance of the permit. After
125	receipt of an application, the division shall convene to
126	consider and act upon permits applied for. The division shall
127	disapprove an application if it fails to meet the requirements
128	of this chapter. Upon each application filed and approved, a
129	permit shall be issued setting forth the name of the applicant
130	and a statement showing qualifications of the applicant to
131	conduct racing under this chapter. If a favorable referendum on
132	a pari-mutuel facility has not been held previously within the
133	county, then, before a quarter horse permit may be issued by the
134	division, a referendum ratified by a majority of the electors in
135	the county is required on the question of allowing quarter horse
136	races within that county.
137	(2)  After a quarter horse racing permit has been granted
138	by the division, the department shall grant to the lawful holder
139	of such permit, subject to the conditions of this section, a
140	license to conduct quarter horse racing under this chapter; and
141	the division shall fix annually the time when, place where, and
142	number of days upon which racing may be conducted by such
143	quarter horse racing permitholder. After the first license has
144	been issued to the holder of a permit for quarter horse racing,
145	all subsequent annual applications for a license by a
146	permitholder must be accompanied by proof, in such form as the
147	division requires, that the permitholder still possesses all the
148	qualifications prescribed by this chapter. The division may
149	revoke any permit or license issued under this section upon the
150	willful violation by the licensee of any provision of this
151	chapter or any rule adopted by the division under this chapter.
152	The division shall revoke any quarter horse permit under which
153	no live racing has ever been conducted before July 7, 1990, for
154	failure to conduct a horse meet pursuant to the license issued
155	where a full schedule of horseracing has not been conducted for
156	a period of 18 months commencing on October 1, 1990, unless the
157	permitholder has commenced construction on a facility at which a
158	full schedule of live racing could be conducted as approved by
159	the division. "Commenced construction" means initiation of and
160	continuous activities beyond site preparation associated with
161	erecting or modifying a horseracing facility, including
162	procurement of a building permit applying the use of approved
163	construction documents, proof of an executed owner/contractor
164	agreement or an irrevocable or binding forced account, and
165	actual undertaking of foundation forming with steel installation
166	and concrete placing. The 18-month period shall be extended by
167	the division, to the extent that the applicant demonstrates to
168	the satisfaction of the division that good faith commencement of
169	the construction of the facility is being delayed by litigation
170	or by governmental action or inaction with respect to
171	regulations or permitting precluding commencement of the
172	construction of the facility.
173	(1)(3)  The operator of any licensed racetrack is
174	authorized to lease such track to any quarter horse racing
175	permitholder for the conduct of quarter horse racing under this
176	chapter.
177	(4)  Section 550.054 is inapplicable to quarter horse
178	racing as permitted under this section. All other provisions of
179	this chapter apply to, govern, and control such racing, and the
180	same must be conducted in compliance therewith.
181	(2)(5)  Quarter horses participating in such races must be
182	duly registered by the American Quarter Horse Association, and
183	before each race such horses must be examined and declared in
184	fit condition by a qualified person designated by the division.
185	(3)(6)  Any quarter horse racing days permitted under this
186	chapter are in addition to any other racing permitted under the
187	license issued the track where such quarter horse racing is
188	conducted.
189	(4)(7)(a)  Any quarter horse racing permitholder operating
190	under a valid permit issued by the division is authorized to
191	substitute races of other breeds of horses, except
192	thoroughbreds, which are, respectively, registered with the
193	American Paint Horse Association, Appaloosa Horse Club, Arabian
194	Horse Registry of America, Palomino Horse Breeders of America,
195	or United States Trotting Association, or for no more than 50
196	percent of the quarter horse races daily, and may substitute
197	races of thoroughbreds registered with the Jockey Club for no
198	more than 50 percent of the quarter horse races during its meet
199	daily with the written consent of all greyhound, harness, and
200	thoroughbred permitholders whose pari-mutuel facilities are
201	located within 50 air miles of such quarter horse racing
202	permitholder's pari-mutuel facility.
203	(b)  Any permittee operating within an area of 50 air miles
204	of a licensed thoroughbred track may not substitute thoroughbred
205	races under this section while a thoroughbred horse race meet is
206	in progress within that 50 miles. Any permittee operating within
207	an area of 125 air miles of a licensed thoroughbred track may
208	not substitute live thoroughbred races under this section while
209	a thoroughbred permittee who pays taxes under s. 550.09515(2)(a)
210	is conducting a thoroughbred meet within that 125 miles. These
211	mileage restrictions do not apply to any permittee that holds a
212	nonwagering permit issued pursuant to s. 550.505.
213	(5)(8)  Except as provided in s. 550.3345, a quarter horse
214	permit issued pursuant to this section is not eligible for
215	transfer or conversion to another type of pari-mutuel operation.
216	(6)(9)  Any nonprofit corporation, including, but not
217	limited to, an agricultural cooperative marketing association,
218	organized and incorporated under the laws of this state may
219	apply for a quarter horse racing permit and operate racing meets
220	under such permit, provided all pari-mutuel taxes and fees
221	applicable to such racing are paid by the corporation. However,
222	insofar as its pari-mutuel operations are concerned, the
223	corporation shall be considered to be a corporation for profit
224	and is subject to taxation on all property used and profits
225	earned in connection with its pari-mutuel operations.
226	(7)  To be eligible to conduct intertrack wagering, a
227	quarter horse racing permitholder must have conducted a full
228	schedule of live racing in the preceding year and, to operate a
229	cardroom, a quarter horse racing permitholder must be licensed
230	to conduct a full schedule of live racing in the initial year of
231	cardroom licensure.
232	(10)  Intertrack wagering shall not be authorized for any
233	quarter horse permitholder without the written consent of all
234	greyhound, harness, and thoroughbred permitholders whose pari-
235	mutuel facilities are located within 50 air miles of such
236	quarter horse permitholder's pari-mutuel facility.
237	Section 3.  Section 550.3345, Florida Statutes, is created
238	to read:
239	550.3345  Conversion of quarter horse permit to a limited
240	thoroughbred permit.--
241	(1)  In recognition of the important and long-standing
242	economic contribution of the thoroughbred horse breeding
243	industry to this state and the state's vested interest in
244	promoting the continued viability of this agricultural activity,
245	the state intends to provide a limited opportunity for the
246	conduct of live thoroughbred horse racing with the net revenues
247	from such racing dedicated to the enhancement of thoroughbred
248	purses and breeders', stallion, and special racing awards under
249	this chapter; the general promotion of the thoroughbred horse
250	breeding industry; and the care in this state of thoroughbred
251	horses retired from racing.
252	(2)  Notwithstanding any other provision of law, the holder
253	of a quarter horse racing permit issued under s. 550.334 may,
254	within 1 year after the effective date of this section, apply to
255	the division for a transfer of the quarter horse racing permit
256	to a not-for-profit corporation formed under state law to serve
257	the purposes of the state as provided in subsection (1). The
258	board of directors of the not-for-profit corporation must be
259	comprised of 11 members, 4 of whom shall be designated by the
260	applicant, 4 of whom shall be designated by the Florida
261	Thoroughbred Breeders' Association, and 3 of whom shall be
262	designated by the other 8 directors, with at least 1 of these 3
263	members being an authorized representative of another
264	thoroughbred permitholder in this state. The not-for-profit
265	corporation shall submit an application to the division for
266	review and approval of the transfer in accordance with s.
267	550.054. Upon approval of the transfer by the division, and
268	notwithstanding any other provision of law to the contrary, the
269	not-for-profit corporation may, within 1 year after its receipt
270	of the permit, request that the division convert the quarter
271	horse racing permit to a permit authorizing the holder to
272	conduct pari-mutuel wagering meets of thoroughbred racing.
273	Neither the transfer of the quarter horse racing permit nor its
274	conversion to thoroughbred racing shall be subject to the
275	mileage limitation set forth in s. 550.054(2) or to a
276	ratification election under s. 550.0651. Upon receipt of the
277	request for such conversion, the division shall timely issue a
278	converted permit. The converted permit and the not-for-profit
279	corporation shall be subject to the following requirements:
280	(a)  All net revenues derived by the not-for-profit
281	corporation under the thoroughbred horse racing permit, after
282	the funding of operating expenses and capital improvements,
283	shall be dedicated to the enhancement of thoroughbred purses and
284	breeders', stallion, and special racing awards under this
285	chapter; the general promotion of the thoroughbred horse
286	breeding industry; and the care in this state of thoroughbred
287	horses retired from racing.
288	(b)  From December 1 through April 30, no live thoroughbred
289	racing may be conducted under the permit on any day during which
290	another thoroughbred permitholder is conducting live
291	thoroughbred racing within 125 air miles of the not-for-profit
292	corporation's pari-mutuel facility unless the other thoroughbred
293	permitholder gives its written consent.
294	(c)  After the conversion of the quarter horse racing
295	permit and the issuance of its initial license to conduct pari-
296	mutuel wagering meets of thoroughbred racing, the not-for-profit
297	corporation shall annually apply to the division for a license
298	pursuant to s. 550.5251(2)-(5).
299	(d)  Racing under the permit may take place only at the
300	location for which the original quarter horse racing permit was
301	issued, which may be leased by the not-for-profit corporation
302	for that purpose; however, the not-for-profit corporation may,
303	without the conduct of any ratification election pursuant to ss.
304	550.054(13) or 550.0651, move the location of the permit to
305	another location in the same county provided that such
306	relocation is approved under the zoning and land use regulations
307	of the applicable county or municipality.
308	(e)  No permit converted under this section is eligible for
309	transfer to another person or entity.
310	(3)  Unless otherwise provided in this section, after
311	conversion, the permit and the not-for-profit corporation shall
312	be treated under the laws of this state as a thoroughbred permit
313	and as a thoroughbred permitholder, respectively, with the
314	exception of s. 550.09515(3).
315	Section 4.  Paragraph (a) of subsection (1) and paragraph
316	(a) of subsection (2) of section 551.106, Florida Statutes, are
317	amended to read:
318	551.106  License fee; tax rate; penalties.--
319	(1)  LICENSE FEE.--
320	(a)  Upon submission of the initial application for a slot
321	machine license and annually thereafter, on the anniversary date
322	of the issuance of the initial license, the licensee must pay to
323	the division a nonrefundable license fee of $2 $3 million for
324	the succeeding 12 months of licensure. The license fee shall be
325	deposited into the Pari-mutuel Wagering Trust Fund of the
326	Department of Business and Professional Regulation to be used by
327	the division and the Department of Law Enforcement for
328	investigations, regulation of slot machine gaming, and
329	enforcement of slot machine gaming provisions under this
330	chapter. These payments shall be accounted for separately from
331	taxes or fees paid pursuant to the provisions of chapter 550.
332	(2)  TAX ON SLOT MACHINE REVENUES.--
333	(a)  The tax rate on slot machine revenues at each facility
334	shall be two times the percentage rate specified in that section
335	of a gaming compact between the Seminole Tribe of Florida and
336	the State of Florida applicable to tribal gaming revenues for
337	the purpose of determining the annual revenue share that the
338	Seminole Tribe of Florida is obligated to pay to the state
339	pursuant to such gaming compact that has been ratified by the
340	Legislature and has been approved by either the Secretary of the
341	United States Department of the Interior or by operation of
342	federal law. If, at the end of any fiscal year, the aggregate
343	amount of slot machine revenues paid to the state by all
344	operating slot machine licensees in Broward and Miami-Dade
345	Counties under this paragraph is less than $140 million, each
346	slot machine licensee shall pay to the state within 45 days
347	after the end of the fiscal year a surcharge equal to its pro
348	rata share of the difference. Each pro rata share shall be an
349	amount proportional to the number of facilities licensed to
350	operate slot machines, regardless of whether the facility is
351	operating such machines. The tax rate on slot machine revenues
352	at each facility shall be 50 percent.
353	Section 5.  Paragraph (a) of subsection (5), paragraph (b)
354	of subsection (7), and subsection (8) of section 849.086,
355	Florida Statutes, are amended to read:
356	849.086  Cardrooms authorized.--
357	(5)  LICENSE REQUIRED; APPLICATION; FEES.--No person may
358	operate a cardroom in this state unless such person holds a
359	valid cardroom license issued pursuant to this section.
360	(a)  Only those persons holding a valid cardroom license
361	issued by the division may operate a cardroom. A cardroom
362	license may only be issued to a licensed pari-mutuel
363	permitholder and an authorized cardroom may only be operated at
364	the same facility at which the permitholder is authorized under
365	its valid pari-mutuel wagering permit to conduct pari-mutuel
366	wagering activities. An initial cardroom license shall only be
367	issued to a pari-mutuel permitholder if the permitholder is
368	licensed to conduct a full schedule of live racing or games as
369	defined in s. 550.002(11) during the state fiscal year in which
370	the initial cardroom license is issued.
371	(7)  CONDITIONS FOR OPERATING A CARDROOM.--
372	(b)  Any horserace, greyhound race, or jai alai
373	permitholder licensed under this section may operate a cardroom
374	at the pari-mutuel facility for 24 hours per day on any day for
375	a cumulative amount of 12 hours if the permitholder meets the
376	requirements under paragraph (5)(b).
377	(8)  METHOD OF WAGERS; LIMITATION.--
378	(a)  No wagering may be conducted using money or other
379	negotiable currency. Games may only be played utilizing a
380	wagering system whereby all players' money is first converted by
381	the house to tokens or chips which shall be used for wagering
382	only at that specific cardroom.
383	(b)  The cardroom operator may limit the amount wagered in
384	any game or series of games, but the maximum bet may not exceed
385	$50 $5 in value. There may not be more than three raises in any
386	round of betting. The fee charged by the cardroom for
387	participation in the game shall not be included in the
388	calculation of the limitation on the bet amount provided in this
389	paragraph. However, a cardroom operator may conduct games of
390	Texas Hold-em without a betting limit if the required player
391	buy-in is no more than $1,000 $100.
392	(c)  A tournament shall consist of a series of games. The
393	entry fee for a tournament, including any re-buys, may not
394	exceed the maximum amount that could be wagered by a participant
395	in 10 like-kind, nontournament games under paragraph (b).
396	Tournaments may be played only with tournament chips that are
397	provided to all participants in exchange for an entry fee and
398	any subsequent re-buys. All players must receive an equal number
399	of tournament chips for their entry fee. Tournament chips have
400	no cash value and represent tournament points only. There is no
401	limitation on the number of tournament chips that may be used
402	for a bet except as otherwise determined by the cardroom
403	operator. Tournament chips may never be redeemed for cash or for
404	any other thing of value. The distribution of prizes and cash
405	awards must be determined by the cardroom operator before entry
406	fees are accepted. For purposes of tournament play only, the
407	term "gross receipts" means the total amount received by the
408	cardroom operator for all entry fees, player re-buys, and fees
409	for participating in the tournament less the total amount paid
410	to the winners or others as prizes.
411	(d)  In each of its facilities, a cardroom operator may
412	hold up to two celebrity or charity poker tournaments per year
413	that are not subject to the limitations and restrictions imposed
414	by this section, provided that 100 percent of the gross
415	receipts, as defined in paragraph (c), from each poker
416	tournament are donated to a charitable organization organized
417	pursuant to s. 501(c)(3) of the Internal Revenue Code. Such
418	celebrity or charity poker tournament may not be played over
419	more than 8 calendar days. The payments made to charitable
420	organizations pursuant to this paragraph shall not be calculated
421	as gross receipts for the purpose of calculating tax payments
422	due to the state under paragraph (13)(a).
423	Section 6.  This act shall take effect July 1, 2009, except
424	that the amendments to section 551.106, Florida Statutes, made
425	by this act shall take effect only upon the date that the
426	Legislature ratifies an Indian gaming compact between the State
427	and the Seminole Tribe of Florida and is approved or deemed
428	approved by the Secretary of the United States Department of the
429	Interior as evidenced by publication of the executed compact in
430	the Federal Register.

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