Florida Senate - 2009 PROPOSED COMMITTEE SUBSTITUTE
Bill No. SB 836
Barcode 397920
580-03112A-09
Proposed Committee Substitute by the Committee on Regulated
Industries
1 A bill to be entitled
2 An act relating to gaming; providing legislative
3 findings and intent; authorizing electronic gaming
4 machines in certain pari-mutuel facilities; defining
5 terms; providing powers and duties of the Division of
6 Pari-mutuel Wagering of the Department of Business and
7 Professional Regulation and the Department of Law
8 Enforcement; authorizing the Division of Pari-mutuel
9 Wagering to adopt rules regulating electronic gaming
10 activities; authorizing the Division of Pari-mutuel
11 Wagering and the Department of Law Enforcement to
12 conduct investigations relating to electronic gaming;
13 authorizing the Division of Pari-mutuel Wagering to
14 issue licenses for electronic gaming; specifying
15 qualifications of licensees; requiring licensees to
16 provide advance notice of certain ownership changes to
17 the Division of Pari-mutuel Wagering; specifying
18 requirements for a licensee’s facilities-based
19 computer system; requiring electronic gaming machines
20 to maintain a payout percentage of at least 85
21 percent; requiring licensees to maintain records;
22 requiring licensees to make and file certain reports
23 with the Division of Pari-mutuel Wagering; requiring
24 an applicant for an electronic gaming license to have
25 certain agreements for live races or games; providing
26 for arbitration of such agreements; authorizing the
27 Division of Pari-mutuel Wagering to issue temporary
28 occupational licenses; providing for the renewal of
29 electronic gaming machine licenses; specifying a
30 nonrefundable licensing fee for electronic gaming
31 licenses; specifying the rate of tax on electronic
32 gaming machine revenues; providing for penalties for
33 failure to pay the taxes; requiring electronic gaming
34 machine licensees and certain persons having access to
35 gaming areas to submit fingerprints in connection with
36 certain occupational licenses; specifying grounds for
37 the Division of Pari-mutuel Wagering to take action
38 against applicants for and licensees having certain
39 occupational licenses; authorizing the Division of
40 Pari-mutuel Wagering to impose fines for violations of
41 laws relating to electronic gaming; prohibiting
42 regulators, certain businesses, licensees, and
43 employees from having certain relationships with each
44 other; subjecting a person who makes certain false
45 statements to fines; subjecting a person to fines for
46 possessing electronic games without a license;
47 imposing criminal penalties for attempting to
48 manipulate electronic gaming machines or theft
49 relating to electronic gaming; authorizing warrantless
50 arrests by law enforcement officers under certain
51 circumstances; providing immunity to law enforcement
52 officers who make such arrests; imposing criminal
53 penalties for resisting arrest or detention;
54 prohibiting electronic gaming machines from entering
55 this state; authorizing the Division of Pari-mutuel
56 Wagering to exclude certain individuals from the
57 facility of an electronic gaming machine licensee;
58 prohibiting persons who are younger than 18 years of
59 age from playing an electronic gaming machine;
60 specifying a limit on the number of electronic gaming
61 machines in a facility; requiring an electronic gaming
62 machine licensee to provide office space to the
63 Division of Pari-mutuel Wagering and to the Department
64 of Law Enforcement free of charge; limiting the hours
65 that an electronic gaming machine facility may
66 operate; authorizing the Division of Pari-mutuel
67 Wagering to revoke or suspend licenses or impose fines
68 for willful violations of laws or rules regulating
69 electronic gaming; requiring electronic gaming machine
70 licensees to train employees about gambling
71 addictions; imposing a regulatory fee for a gambling
72 addiction program; entitling electronic gaming machine
73 licensees to a caterer’s license; restricting the
74 provision of alcoholic beverages, automated teller
75 machines, and check cashing activities in gaming
76 machine areas; authorizing the Division of Pari-mutuel
77 Wagering to adopt rules; preempting to the state the
78 authority to regulate electronic gaming facilities;
79 excepting bingo games operated by charitable or
80 nonprofit organizations from the provisions of the
81 act; amending s. 215.22, F.S.; exempting taxes imposed
82 on electronic gaming and electronic gaming machine
83 revenue from specified service charges; authorizing
84 the Division of Pari-mutuel Wagering to spend certain
85 trust funds; requiring repayment of such funds;
86 amending s. 550.002, F.S.; revising a definitions;
87 amending s. 550.01215, F.S.; deleting an exception
88 relating to licensing of thoroughbred racing; amending
89 s. 550.0951, F.S.; specifying the tax on historical
90 racing, the take-out of a pari-mutuel pool, an a
91 payment to a purse account; providing for payments to
92 certain horse racing associations; specifying the fee
93 for a permitholder to conduct historical racing;
94 revising the date on which tax payments are due;
95 amending s. 550.09511, F.S.; revising the schedule for
96 the payment of jai alai taxes; amending s. 550.09514,
97 F.S.; revising the schedule for the payment of
98 greyhound dog racing taxes; amending s. 550.105, F.S.;
99 providing for a 3-year occupational license for
100 certain pari-mutuel employees; specifying maximum
101 license fees; providing procedures for criminal
102 history record checks; amending s. 550.135, F.S.;
103 providing for the reservation of electronic gaming
104 machine fees in a trust fund; amending s. 550.2415,
105 F.S.; providing that cruelty to any animal is a
106 violation of ch. 550, F.S.; authorizing the Division
107 of Pari-mutuel Wagering to inspect areas are located;
108 amending s. 550.26165, F.S.; providing legislative
109 intent to attract thoroughbred training and breeding
110 to this state; authorizing the Florida Thoroughbred
111 Breeders’ Association to pay certain awards as part of
112 its pay plan; amending s. 550.2625, F.S.; limiting the
113 application of requirements for minimum purses and
114 awards to this state; amending s. 550.334, F.S.;
115 deleting a provision for issuing a permit to conduct
116 quarter horse race meetings; deleting a provision for
117 issuing a license to conduct quarter horse racing;
118 deleting provisions to revoke such permit or license
119 for certain violations or failure to conduct live
120 racing; removing an exception to specified permit
121 application provisions; amending s. 550.3355, F.S.;
122 revising the time period for a harness track summer
123 season; repealing s. 550.3605, F.S., relating to the
124 use of electronic transmitting equipment on the
125 premises of a horse or dog racetrack or jai alai
126 fronton; amending s. 550.5251, F.S.; deleting
127 provisions relating to racing days and dates for
128 thoroughbred permitholders that conducted races
129 between certain dates; revising provisions relating to
130 thoroughbred racing dates and minimum number of races;
131 creating s. 550.810, F.S.; specifying requirements for
132 historical racing systems; limiting the number of
133 historical terminals in certain pari-mutuel
134 facilities; authorizing the Division of Pari-mutuel
135 wagering to adopt rules regulating historical racing;
136 providing for the disposition of pari-mutuel tickets
137 that are not redeemed within a certain period of time;
138 amending s. 551.104, F.S.; providing that the payout
139 percentage of a slot machine facility must be at least
140 85 percent; specifying the licensing fee for slot
141 machine gaming; specifying the rate of tax on slot
142 machine revenues; revising the due date for slot
143 machine taxes; amending s. 551.113, F.S.; prohibiting
144 a person who is younger than 18 years of age from
145 playing a slot machine; amending s. 551.121, F.S.;
146 authorizing a progressive system to be used in
147 conjunction with slot machines between licensed
148 facilities; amending s. 772.102, F.S.; revising the
149 definition of “criminal activity”; conforming cross
150 references; amending s. 849.161, F.S.; providing that
151 ch. 849, F.S., does not apply to certain mechanical
152 historical racing systems; amending s. 849.086, F.S.;
153 requiring an applicant for a cardroom licensed to have
154 run a full schedule of live races; specifying maximum
155 license fees for occupational licenses for cardroom
156 employees and cardroom businesses; limiting the hours
157 of cardroom operations; revising the maximum bet and
158 entry fee for tournaments; expanding the authorization
159 for cardroom activities contingent upon a compact with
160 the Seminole Tribe of Florida; amending s. 849.15,
161 F.S.; authorizing the possession of certain gambling
162 devices; amending s. 895.02, F.S.; revising the
163 definitions of “racketeering activity” and “unlawful
164 debt”; conforming cross-references; providing an
165 appropriation and the creation of full-time equivalent
166 positions; providing contingent effective dates.
167
168 Be It Enacted by the Legislature of the State of Florida:
169
170 Section 1. The Legislature finds that the pari-mutuel
171 industry has played an important part in the development of this
172 state and that it is a vital part of the state’s economy. The
173 Legislature also recognizes that many individuals and small
174 businesses provide services to the pari-mutuel industry and rely
175 upon the continued vigor of the industry to survive. The pari
176 mutuel industry and these individuals and small business employ
177 many Floridians, pay a variety of taxes to support state and
178 local governmental activities, and contribute to the economy of
179 this state. Given the important role played by the industry, and
180 the individuals and small businesses associated with it, as well
181 as the current state of the economy in the United States in
182 general and in Florida in particular, the Legislature finds that
183 in order to preserve the industry, to ensure continued
184 employment for many Floridians, and to preserve and improve the
185 state’s revenues, measures must be taken to eliminate
186 unnecessary regulations, encourage business and regulatory
187 efficiency, reduce unnecessary tax burdens, and increase
188 revenues to the state.
189 Section 2. Electronic gaming machines authorized.—An
190 electronic gaming machine licensee may possess electronic gaming
191 machines and operate electronic gaming machines at an eligible
192 facility, as defined by section 3. of this act, where the
193 licensee is authorized to conduct pari-mutuel wagering
194 activities under to chapter 550, Florida Statutes.
195 Notwithstanding any other provision of law, it is not a crime
196 for a person to participate in electronic gaming at a facility
197 licensed to possess electronic gaming machines or to operate
198 electronic gaming machines.
199 Section 3. As used in this act, the term:
200 (1) “Bingo” or “game of bingo” means the game of chance
201 commonly known as “bingo,” which may include the use of
202 electronic, computer, or other technological aids. Such aids may
203 include entertainment displays, including spinning reels, video
204 displays, associated bonus displays, and video poker. The game
205 of bingo requires at least two live players competing for a
206 common prize. The prizes result from a random draw or electronic
207 determination and release or announcement of numbers or other
208 designations necessary to form the predesignated game-winning
209 pattern on an electronic bingo card. A game of bingo ends when a
210 player receives a predesignated game-winning pattern and
211 consolation prizes, if any, are awarded. The game of bingo does
212 not include house-banked games or electronic or
213 electromechanical facsimiles of any other game of chance or slot
214 machine of any kind.
215 (2) “Bonus prize” means a prize awarded in a bingo game in
216 addition to the game-winning prize. The term includes prizes
217 based on predesignated and preannounced patterns that differ
218 from the game-winning pattern, a winning pattern in a specified
219 quantity of numbers or designations drawn or electronically
220 determined and released, or any combination of these patterns.
221 The term includes a prize awarded as an interim prize while
222 players are competing for the game-winning prize or as a
223 consolation prize after a player has won the game-winning prize.
224 (3) “Designated electronic gaming machine area” means any
225 area of a facility of an electronic gaming machine licensee in
226 which electronic gaming may be conducted.
227 (4) “Distributor” means any person who sells, leases,
228 offers, or otherwise provides, distributes, or services any
229 electronic gaming machine or associated equipment, software, or
230 other functions required for use or play of electronic gaming
231 machines in this state. The term may include a manufacturer.
232 (5) “Division” means the Division of Pari-mutuel Wagering
233 of the Department of Business and Professional Regulation.
234 (6) “Electronic game” means an electronically simulated
235 bingo game that:
236 (a) Is played on an electronic gaming machine that, upon
237 insertion of a ticket, or an electronic or account-based card,
238 is available to play or simulate a game of bingo played on a
239 network of electronic gaming machines;
240 (b) Is not house-banked;
241 (c) May award bonus prizes and progressive prizes; and
242 (d) May make provide payoffs to players in the form of
243 tickets or electronic or account-based credits that may be
244 exchanged for cash, merchandise, or other items of value.
245 (7) “Electronic gaming machine” means a player station,
246 machine, or device, including associated equipment that is
247 required to operate the player station, machine, or device, upon
248 which an electronic game is played or operated. An electronic
249 gaming machine:
250 (a) May include spinning reels, video displays, video
251 poker, or other similar technologies to convey outcomes to a
252 player of simulated bingo as approved by the division.
253 (b) Must display one or more bingo cards used in the game
254 before numbers or other designations for the game are randomly
255 drawn.
256 (c) Must display any card in use by a player during game
257 play.
258 (d) Must be directly linked to a central computer for
259 purposes of security, monitoring, and auditing. The central
260 computer may not limit a facility’s ability to deploy its
261 electronic player tracking or electronic gaming accounting
262 system. However, such systems must use a widely accepted open
263 communications protocol to ensure interoperability among all
264 manufacturers and to provide a player with the ability to
265 seamlessly alternate play between the electronic gaming machines
266 and electronic gaming machines of different licensed
267 manufacturers.
268 (e) Is not a coin-operated amusement machine as defined in
269 s. 212.02, Florida Statutes, or an amusement game or machine as
270 described in s. 849.161, Florida Statutes. Electronic gaming
271 machines are not subject to the tax imposed by s. 212.05(1)(h),
272 Florida Statutes.
273 (8) “Electronic gaming machine facility” means an eligible
274 facility at which electronic gaming machines are lawfully
275 offered for play.
276 (9) “Electronic gaming machine license” means a license
277 issued by the division authorizing a licensee under chapter 550,
278 Florida Statutes, to place and operate electronic gaming
279 machines in an eligible facility.
280 (10) “Electronic gaming machine revenues” means all cash
281 and property, except nonredeemable credits, received by the
282 electronic gaming machine licensee from the operation of
283 electronic gaming machines, less the amount of cash, cash
284 equivalents, credits, and prizes paid to winners of electronic
285 games.
286 (11) “Eligible facility” means a facility at which a
287 licensee under chapter 550, Florida Statutes, has run a full
288 schedule of live racing, as defined in s. 550.002(11), Florida
289 Statutes, for 3 consecutive fiscal years before the date of
290 application for an electronic gaming license, and which is also
291 a cardroom license holder, but not a slot machine facility
292 licensed under chapter 551, Florida Statutes.
293 (12) “Game-winning pattern” means a predetermined pattern
294 on an electronic bingo card. Each game must have one game
295 winning pattern or arrangement that must be common to all
296 players and may be won by multiple players simultaneously. A
297 game-winning prize must be awarded in every game. The pattern
298 designated as the game-winning pattern need not pay the highest
299 prize available in the game. Other patterns may be designated
300 for the award of bonus prizes in addition to the prize to
301 awarded based on the game-winning pattern.
302 (13) “Manufacturer” means any person who manufactures,
303 builds, rebuilds, fabricates, assembles, produces, programs,
304 designs, or modifies any electronic gaming machine or associated
305 equipment for use or play in this state for gaming purposes.
306 (14) “Nonredeemable credits” means electronic gaming
307 machine operating credits that may not be redeemed for cash or
308 any other thing of value by an electronic gaming machine, kiosk,
309 or the electronic gaming machine licensee and that are provided
310 for free to patrons. The credits become nonredeemable credits
311 when they are metered as credit into an electronic gaming
312 machine and recorded in the facility-based monitoring system.
313 (15) “Progressive prize” means an established prize for a
314 bingo game that is:
315 (a) Funded by a percentage of each player’s purchase or
316 wager within one or more licensed facilities for a specific
317 progressive bingo game;
318 (b) Awarded to a player who obtains a specific
319 predesignated and preannounced pattern having a specified
320 quantity of numbers or designations randomly drawn and released
321 or electronically determined or randomly drawn and released or
322 electronically determined in a specified sequence; and
323 (c) Rolled over to each subsequent specific progressive
324 bingo game until it is won.
325 Section 4. Powers and duties of the Division of Pari-Mutuel
326 Wagering and the Department of Law Enforcement.—
327 (1) The division shall adopt rules necessary to implement,
328 administer, and regulate the operation of electronic gaming
329 machines in this state. The rules shall include:
330 (a) Procedures for applying for and renewing electronic
331 gaming machine licenses.
332 (b) Technical requirements and qualifications to receive an
333 electronic gaming machine license or electronic gaming machine
334 occupational license.
335 (c) Procedures to ensure that an electronic game or
336 electronic gaming machine does not enter the state or is not
337 offered for play until it has been tested and certified by a
338 licensed testing laboratory for play in the state.
339 (d) Procedures to test, certify, control, and approve
340 electronic games and electronic gaming machines. The procedures
341 shall address measures to scientifically test and technically
342 evaluate electronic gaming machines for compliance with the
343 applicable laws and rules. The division may contract with an
344 independent testing laboratory to conduct any necessary testing.
345 The independent testing laboratory must have a national
346 reputation indicating that it is demonstrably competent and
347 qualified to scientifically test and evaluate electronic games
348 and electronic gaming machines and to perform the functions
349 required by this act. An independent testing laboratory may not
350 be owned or controlled by a licensee. The selection of an
351 independent testing laboratory for any purpose related to the
352 conduct of electronic gaming machines by a licensee shall be
353 made from a list of laboratories approved by the division.
354 (e) Procedures relating to electronic gaming machine
355 revenues, including verifying and accounting for such revenues,
356 auditing, and collecting taxes and fees.
357 (f)1. Procedures to regulate, manage, and audit the
358 operation, financial data, and program information relating to
359 electronic gaming machines which enable the division and the
360 Department of Law Enforcement to audit the operation, financial
361 data, and program information of an electronic gaming machine
362 licensee required by the division or the Department of Law
363 Enforcement.
364 2. Procedures to allow the division and the Department of
365 Law Enforcement to:
366 a. Monitor, at any time on a real-time basis, wagering
367 patterns, payouts, tax collection, and compliance with division
368 rules;
369 b. Suspend play immediately on particular electronic gaming
370 machines if the facilities-based computer system indicates
371 possible tampering with or manipulation of the electronic gaming
372 machines; and
373 c. Immediately suspend play of the entire operation if the
374 facilities-based computer system may have been tampered with or
375 manipulated. The division shall notify the Department of Law
376 Enforcement or the Department of Law Enforcement shall notify
377 the division, as appropriate, when there is a suspension of play
378 under this subparagraph. The division and the Department of Law
379 Enforcement shall exchange information that is necessary for and
380 cooperate in the investigation of the circumstances resulting in
381 suspension of play.
382 (g) Procedures to require each licensee operating
383 electronic gaming machines, at the licensee’s expense, to supply
384 the division with a bond having the penal sum of $2 million
385 payable to the Chief Financial Officer. Any bond shall be issued
386 by a surety approved by the division and the Chief Financial
387 Officer, conditioned to pay the Chief Financial Officer as
388 treasurer of the division. The licensee must keep its books and
389 records and make reports as provided in this act and conduct
390 electronic gaming machine operations in conformity with this act
391 and other provisions of law. Such bond shall be separate from
392 the bond required in s. 550.125, Florida Statutes.
393 (h) Procedures to require licensees to maintain specified
394 records and submit any data, information, records, or reports,
395 including financial and income records, required by this act or
396 rules of the division.
397 (i) A requirement that the payout percentage of an
398 electronic gaming machine facility be at least 85 percent. The
399 theoretical payout percentage shall be determined using standard
400 methods of probability theory.
401 (j) Minimum standards of security for the facilities,
402 including floor plans, security cameras, and other security
403 equipment.
404 (k) Procedures to require electronic gaming machine
405 licensees to implement and establish drug-testing programs for
406 all electronic gaming machine occupational licensees.
407 (2) The division shall conduct investigations necessary to
408 fulfill its responsibilities to regulate electronic gaming
409 machine facilities.
410 (3) The Department of Law Enforcement and local law
411 enforcement agencies have concurrent jurisdiction to investigate
412 criminal violations of laws regulating electronic gaming
413 facilities and may investigate any other criminal violation of
414 law occurring at a facility. Such investigations may be
415 conducted in conjunction with the appropriate state attorney.
416 (4)(a) The division, the Department of Law Enforcement, and
417 local law enforcement agencies have unrestricted access to an
418 electronic gaming machine licensee’s facility at all times and
419 shall require each electronic gaming machine licensee to
420 strictly comply with the laws of this state relating to the
421 transaction of such business. The division, the Department of
422 Law Enforcement, and local law enforcement agencies may:
423 1. Inspect and examine premises where electronic gaming
424 machines are offered for play.
425 2. Inspect electronic gaming machines and related equipment
426 and supplies.
427 (b) In addition, the division may:
428 1. Collect taxes, assessments, fees, and penalties.
429 2. Deny, revoke, suspend, or place conditions on the
430 license of a person who violates this act or rules adopted
431 pursuant thereto.
432 (5) The division shall revoke or suspend the license of any
433 person who is no longer qualified or who is found to have been
434 unqualified at the time of application for the license.
435 (6) This section does not:
436 (a) Prohibit the Department of Law Enforcement or any law
437 enforcement authority whose jurisdiction includes a licensed
438 facility from conducting investigations of criminal activities
439 occurring at the facility;
440 (b) Restrict access to an electronic gaming machine
441 licensee’s facility by the Department of Law Enforcement or any
442 local law enforcement authority whose jurisdiction includes the
443 electronic gaming machine licensee’s facility; or
444 (c) Restrict access by the Department of Law Enforcement or
445 local law enforcement authorities to information and records
446 necessary to the investigation of criminal activity which are
447 contained within the electronic gaming machine licensee’s
448 facility.
449 Section 5. License to conduct electronic gaming.—
450 (1) Upon application and a finding by the division after
451 investigation that the application is complete and the applicant
452 is qualified and payment of the initial license fee, the
453 division may issue a license to conduct electronic gaming in any
454 designated electronic gaming machine area of an eligible
455 facility.
456 (2) An electronic gaming machine license may be issued only
457 to a person or entity licensed to conduct pari-mutuel wagering
458 under chapter 550, Florida Statutes, and electronic gaming may
459 be operated only at the eligible facility at which the licensee
460 is authorized to conduct pari-mutuel wagering activities.
461 (3) As a condition of licensure and to maintain continued
462 authority to conduct electronic gaming, an electronic gaming
463 machine licensee shall:
464 (a) Comply with this act.
465 (b) Comply with chapter 550, Florida Statutes, and maintain
466 the pari-mutuel permit and license in good standing pursuant to
467 chapter 550, Florida Statutes. Notwithstanding any contrary
468 provision of law, a pari-mutuel permitholder may, within 60 days
469 after the effective date of this act, amend its pari-mutuel
470 wagering operating license. The division shall issue a new
471 license to the permitholder to effectuate any approved change.
472 (c) Conduct at least a full schedule of live racing or
473 games as defined in s. 550.002(11), Florida Statutes, including
474 races or games under s. 550.475, Florida Statutes, or be
475 authorized to conduct limited intertrack wagering under s.
476 550.6308, Florida Statutes, at the eligible facility. A
477 licensee’s responsibility to conduct such number of live races
478 or games shall be reduced by the number of races or games that
479 could not be conducted due to the direct result of fire, war,
480 hurricane, or other disaster or event beyond the control of the
481 licensee.
482 (d) Provide appropriate current and accurate documentation,
483 on a timely basis, to the division relating to changes in
484 ownership or interest in an electronic gaming machine license.
485 Changes in ownership or interest in an electronic gaming machine
486 license of 5 percent or more of the stock or other evidence of
487 ownership or equity in the electronic gaming machine license or
488 of any parent corporation or other business entity that owns or
489 controls the electronic gaming machine license must be approved
490 by the division prior to such change, unless the owner is an
491 existing holder of the license who was previously approved by
492 the division. Any changes in ownership or interest in an
493 electronic gaming machine license of less than 5 percent, unless
494 such change results in a cumulative total of 5 percent or more,
495 shall be reported to the division within 20 days after the
496 change. The division may conduct an investigation to ensure that
497 the license is properly updated to show the change in ownership
498 or interest. Reporting is not required if the person is holding
499 5 percent or less equity or securities of a corporate owner of
500 the electronic gaming machine licensee that has its securities
501 registered pursuant to s. 12 of the Securities Exchange Act of
502 1934, 15 U.S.C. ss. 78a-78kk, and if such corporation or entity
503 files with the United States Securities and Exchange Commission
504 the reports required by s. 13 of that act, or if the securities
505 of the corporation or entity are regularly traded on an
506 established securities market in the United States. A change in
507 ownership or interest of less than 5 percent which results in a
508 cumulative ownership or interest of 5 percent or more must be
509 approved by the division prior to such change unless the owner
510 is an existing holder of the license who was previously approved
511 by the division.
512 (e) Provide the division and the Department of Law
513 Enforcement unrestricted access to inspect the facilities of an
514 electronic gaming machine licensee in which any activity
515 relative to the operation of electronic gaming machines is
516 conducted.
517 (f) Ensure that the facilities-based computer system or
518 operational and accounting functions of the electronic gaming
519 machine facility is specifically structured to facilitate
520 regulatory oversight. The facilities-based computer system shall
521 give the division and the Department of Law Enforcement the
522 ability to monitor, at any time on a real-time basis, the
523 wagering patterns, payouts, tax collection, and such other
524 operations as are necessary to determine whether the facility is
525 in compliance with statutory provisions and rules adopted by the
526 division for the regulation and control of electronic gaming
527 machines. The division and the Department of Law Enforcement
528 shall have continuous access to this system. The division and
529 the department shall have the ability to suspend play
530 immediately on particular electronic gaming machines if the
531 system indicates possible tampering with or manipulation of
532 those electronic gaming machines or the ability to immediately
533 suspend play of the entire operation if the system indicates
534 that the system has been tampered with or manipulated. The
535 computer system shall be reviewed and approved by the division
536 to ensure necessary access, security, and functionality. The
537 division may adopt rules to provide for the approval process.
538 (g) Ensure that each electronic gaming machine and
539 electronic game is protected from manipulation or tampering
540 affecting the random probabilities of winning plays. The
541 division or the Department of Law Enforcement may suspend play
542 upon reasonable suspicion of any manipulation or tampering. If
543 play has been suspended on any electronic gaming machine, the
544 division or the Department of Law Enforcement may examine the
545 machine to determine whether the machine has been tampered with
546 or manipulated and whether the machine should be returned to
547 operation.
548 (h) Submit a security plan, including the facilities’ floor
549 plans, the locations of security cameras, and a listing of all
550 security equipment that is capable of observing and
551 electronically recording activities being conducted in the
552 facilities of the electronic gaming machine licensee. The
553 security plan must meet the minimum security requirements as
554 determined by the division by rule, and be implemented before
555 operation of electronic gaming machine games. The electronic
556 gaming machine licensee’s facilities must adhere to the security
557 plan at all times. Any changes to the security plan must be
558 submitted by the licensee to the division before they are
559 implemented. The division shall furnish copies of the security
560 plan and changes in the plan to the Department of Law
561 Enforcement.
562 (i) Create and file with the division a written policy for:
563 1. Creating opportunities to purchase from vendors in this
564 state, including minority vendors.
565 2. Creating opportunities for employment of residents of
566 this state, including minority residents.
567 3. Ensuring opportunities for construction services from
568 minority contractors.
569 4. Ensuring that opportunities for employment are offered
570 on an equal, nondiscriminatory basis.
571 5. Providing training for employees on responsible gaming
572 and working with a compulsive or addictive gambling prevention
573 program to further its purposes as provided for in this act.
574 6. The implementation of a drug-testing program that
575 includes, but is not limited to, requiring each employee to sign
576 an agreement that he or she understands that the electronic
577 gaming machine facility is a drug-free workplace.
578
579 The electronic gaming machine licensee shall use the Internet
580 based job-listing system of the Agency for Workforce Innovation
581 in advertising employment opportunities. Beginning in June 2010,
582 each electronic gaming machine licensee shall submit an annual
583 report to the division containing information indicating
584 compliance with this paragraph in regard to minority persons.
585 (j) Maintain a payout percentage of at least 85 percent per
586 electronic gaming machine facility. The theoretical payout
587 percentage shall be determined using standard methods of
588 probability theory.
589 (4) An electronic gaming machine license is not
590 transferable.
591 (5) An electronic gaming machine licensee shall keep and
592 maintain daily records of its electronic gaming machine
593 operations and shall maintain such records for at least 5 years.
594 These records must include all financial transactions and
595 contain sufficient detail to determine compliance with laws and
596 rules regulating electronic gaming. All records shall be
597 available for audit and inspection by the division, the
598 Department of Law Enforcement, or other law enforcement agencies
599 during the licensee’s regular business hours.
600 (6) An electronic gaming machine licensee shall file with
601 the division a monthly report containing the required records of
602 such electronic gaming machine operations. The required reports
603 shall be submitted on forms prescribed by the division and shall
604 be due at the same time as the monthly pari-mutuel reports are
605 due. Such reports are public records once filed.
606 (7) An electronic gaming machine licensee shall file with
607 the division an audit of the receipt and distribution of all
608 electronic gaming machine revenues. The audit must be performed
609 by an independent certified public accountant who shall verify
610 whether the licensee has complied with the financial and
611 auditing laws and rules applicable to the licensee. The audit
612 must include verification of compliance with all statutes and
613 rules regarding all required records of electronic gaming
614 machine operations. Such audit shall be filed within 120 days
615 after completion of the permitholder’s fiscal year.
616 (8) The division may share any information with the
617 Department of Law Enforcement, any other law enforcement agency
618 having jurisdiction over electronic gaming machines or pari
619 mutuel activities, or any other state or federal law enforcement
620 agency or division that the Department of Law Enforcement deems
621 appropriate. Any law enforcement agency having jurisdiction over
622 electronic gaming machines or pari-mutuel activities may share
623 with the division information obtained or developed by it.
624 (9)(a) An electronic gaming machine license or renewal may
625 not be issued to an applicant licensed under chapter 550,
626 Florida Statutes, to conduct live pari-mutuel wagering races or
627 games unless the applicant has on file with the division the
628 following binding written agreements governing the payment of
629 awards and purses on live races or games conducted at the
630 licensee’s pari-mutuel facility:
631 1. For a thoroughbred licensee, an agreement governing the
632 payment of purses between the applicant and the Florida
633 Horsemen’s Benevolent and Protective Association, Inc., or the
634 association representing a majority of the thoroughbred owners
635 and trainers at the applicant’s eligible facility located as
636 described in s. 550.615(9), Florida Statutes, and an agreement
637 governing the payment of awards between the applicant and the
638 Florida Thoroughbred Breeders’ Association;
639 2. For a harness licensee, an agreement governing the
640 payment of purses and awards between the applicant and the
641 Florida Standardbred Breeders and Owners Association;
642 3. For a greyhound licensee, an agreement governing the
643 payment of purses between the applicant and the Florida
644 Greyhound Association, Inc.;
645 4. For a quarter horse licensee, an agreement governing the
646 payment of purses between the applicant and the Florida Quarter
647 Horse Racing Association and an agreement governing the payment
648 of awards between the applicant and the Florida Quarter Horse
649 Breeders and Owners Association; or
650 5. For a jai alai licensee, an agreement governing the
651 payment of player awards between the applicant and the
652 International Jai Alai Players Association or a binding written
653 agreement approved by a majority of the jai alai players at the
654 applicant’s eligible facility at which the applicant has a
655 permit issued after January 1, 2000, to conduct jai alai.
656 (b) The agreements may direct the payment of purses and
657 awards from revenues generated by any wagering or games that the
658 applicant is authorized to conduct under state law. All purses
659 and awards are subject to the terms of chapter 550, Florida
660 Statutes. All sums for breeders’, stallion, and special racing
661 awards shall be remitted monthly to the respective breeders
662 association for the payment of awards, subject to the
663 administrative fees authorized under chapter 550, Florida
664 Statutes.
665 (c) An electronic gaming machine license or renewal thereof
666 may not be issued to an applicant licensed to conduct intertrack
667 wagering under s. 550.6308, Florida Statutes, unless the
668 applicant has on file with the division a binding written
669 agreement between the applicant and the Florida Thoroughbred
670 Breeders’ Association, Inc., dedicating to the payment of
671 breeders’, stallion, and special racing awards on live
672 thoroughbred races conducted in this state at least the same
673 percentage of electronic gaming machine revenues as the highest
674 percentage of electronic gaming machine revenues dedicated to
675 purses and awards in a current agreement under this subsection
676 by an applicant licensed under chapter 550, Florida Statutes, to
677 conduct live thoroughbred races. At least half of such funds
678 must be distributed as special racing awards.
679 (d) The division shall suspend an electronic gaming machine
680 license if any agreement required under paragraph (a) is
681 terminated or otherwise ceases to operate or if the division
682 determines that the licensee is materially failing to comply
683 with the terms of such agreement. Any suspension shall take
684 place in accordance with chapter 120, Florida Statutes.
685 (e)1. If an agreement required under paragraph (a) cannot
686 be reached prior to the initial issuance of the electronic
687 gaming machine license, either party may request arbitration. In
688 the case of a renewal, if an agreement is not in place 120 days
689 before the scheduled expiration date of the electronic gaming
690 machine license, the applicant shall immediately ask the
691 American Arbitration Association to furnish a list of 11
692 arbitrators, each of whom shall have at least 5 years of
693 commercial arbitration experience and no financial interest in
694 or prior relationship with any party or with an affiliated or
695 related entity or principal. Each required party to the
696 agreement shall select a single arbitrator from the list within
697 10 days after receipt, and the persons selected shall choose one
698 additional arbitrator from the list within 10 days.
699 2. If an agreement required under paragraph (a) is not in
700 place 60 days after the request under subparagraph 1., in the
701 case of an initial electronic gaming machine license or, in the
702 case of a renewal, 60 days prior to the scheduled expiration
703 date of the license, the matter shall be immediately submitted
704 to mandatory binding arbitration. The three arbitrators selected
705 pursuant to subparagraph 1. shall conduct the arbitration
706 pursuant to the American Arbitration Association Commercial
707 Arbitration Rules and chapter 682, Florida Statutes.
708 3. At the conclusion of the proceedings, which may be no
709 later than 90 days after the request under subparagraph 1. in
710 the case of an initial electronic gaming machine license or, in
711 the case of a renewal, 30 days prior to the scheduled expiration
712 date of the electronic gaming machine license, the arbitration
713 panel shall present to the parties a proposed agreement that the
714 majority of the panel believes equitably balances the rights,
715 interests, obligations, and reasonable expectations of the
716 parties. The parties shall immediately enter into such
717 agreement, which shall satisfy the requirements of paragraph (a)
718 and permit issuance of the pending annual electronic gaming
719 machine license or renewal. The agreement shall be effective
720 until the last day of the license or renewal period or until the
721 parties enter into a different agreement. Each party shall pay
722 its respective costs of arbitration and shall pay one-half of
723 the costs of the arbitration panel, unless the parties otherwise
724 agree. If the agreement remains in place 120 days prior to the
725 scheduled issuance of the next annual license renewal, the
726 arbitration process established in this paragraph shall begin
727 again.
728 4. If neither agreement required under paragraph (a) is in
729 place by the deadlines established in this paragraph,
730 arbitration regarding each agreement shall proceed
731 independently, with separate lists of arbitrators, arbitration
732 panels, arbitration proceedings, and resulting agreements.
733 5. With respect to the agreement required under paragraph
734 (a) governing the payment of purses, the arbitration and
735 resulting agreement is limited to the payment of purses from
736 electronic gaming machine revenues only.
737 (f) If any provision of this subsection or its application
738 to any person or circumstance is held invalid, the invalidity
739 does not affect other provisions or applications of this
740 subsection or act which can be given effect without the invalid
741 provision or application, and to this end the provisions of this
742 subsection are severable.
743 Section 6. Temporary licenses.—
744 (1) Notwithstanding any provision of s. 120.60, Florida
745 Statutes, to the contrary, the division may issue a temporary
746 occupational license upon receipt of a complete application and
747 a determination that the applicant has not been convicted of or
748 had adjudication withheld on any disqualifying criminal offense.
749 The temporary occupational license remains valid until the
750 division grants an occupational license or notifies the
751 applicant of its intended decision to deny the license pursuant
752 to the provisions of s. 120.60, Florida Statutes. The division
753 shall adopt rules to administer this section. However, not more
754 than one temporary license may be issued for any person in any
755 year.
756 (2) A temporary license issued under this section is not
757 transferable.
758 Section 7. Electronic gaming machine license renewal.—
759 (1) An electronic gaming machine license is effective for 1
760 year after issuance and may be renewed annually. The application
761 for renewal must contain all revisions to the information
762 submitted in the prior year’s application which are necessary to
763 maintain such information as accurate and current.
764 (2) The applicant for renewal must attest that any
765 information changes do not affect such applicant’s
766 qualifications for license renewal.
767 (3) Upon determination by the division that the application
768 for renewal is complete and qualifications have been met,
769 including payment of the renewal fee, the license shall be
770 renewed.
771 Section 8. License fee; tax rate; penalties.—
772 (1) LICENSE FEE.—
773 (a) Upon submission of the initial application for an
774 electronic gaming machine license or upon submission of an
775 application to renew a license, the licensee must pay to the
776 division a nonrefundable license fee of $1 million for the
777 succeeding 12 months of licensure. The fee shall be deposited
778 into the Pari-mutuel Wagering Trust Fund of the Department of
779 Business and Professional Regulation to be used by the division
780 and the Department of Law Enforcement for investigations,
781 regulation of electronic gaming, and enforcement of electronic
782 gaming provisions. These payments shall be accounted for
783 separately from taxes or fees paid pursuant to the provisions of
784 chapter 550 or chapter 551, Florida Statutes.
785 (b) The division shall evaluate the license fee and submit
786 recommendations in its legislative budget request identifying
787 the optimum level of electronic gaming machine license fees
788 required to adequately support the electronic gaming machine
789 regulatory program.
790 (c) Notwithstanding s. 550.135(2), Florida Statutes, all
791 fees and fines collected pursuant to this chapter shall remain
792 in the Pari-Mutuel Wagering Trust Fund for use by the division
793 for regulation of electronic gaming machines and electronic
794 games.
795 (2) TAX ON ELECTRONIC GAMING MACHINE REVENUES.—
796 (a) The tax rate on electronic gaming machine revenues at
797 each facility shall be 35 percent.
798 (b) The electronic gaming machine revenue tax imposed by
799 this section shall be paid to the division for deposit into the
800 Pari-mutuel Wagering Trust Fund for immediate transfer by the
801 Chief Financial Officer for deposit into the Educational
802 Enhancement Trust Fund of the Department of Education. Any
803 interest earnings on the tax revenues shall also be transferred
804 to the Educational Enhancement Trust Fund.
805 (c)1. Funds transferred to the Educational Enhancement
806 Trust Fund shall be used to supplement public education funding
807 statewide.
808 2. If necessary to comply with any covenant established
809 pursuant to s. 1013.68(4), s. 1013.70(1), or s. 1013.737(3),
810 Florida Statutes, funds transferred to the Educational
811 Enhancement Trust Fund shall first be available to pay debt
812 service on lottery bonds issued to fund school construction in
813 the event lottery revenues are insufficient for such purpose or
814 to satisfy debt service reserve requirements established in
815 connection with lottery bonds. Moneys available pursuant to this
816 subparagraph are subject to annual appropriation by the
817 Legislature.
818 (3) PAYMENT AND DISPOSITION OF TAXES.—Payment for the tax
819 on electronic gaming machine revenues imposed by this section
820 shall be paid to the division. The division shall deposit such
821 funds with the Chief Financial Officer, to the credit of the
822 Pari-mutuel Wagering Trust Fund. The electronic gaming machine
823 licensee shall remit to the division payment for the tax on
824 electronic gaming machine revenues by 3 p.m. on the 5th calendar
825 day of each month for taxes imposed and collected for the
826 preceding calendar month. The electronic gaming machine licensee
827 shall file a report under oath by the 5th day of each calendar
828 month for all taxes remitted during the preceding calendar
829 month. Such payments shall be accompanied by a report under oath
830 showing all electronic gaming machine activities for the
831 preceding calendar month and such other information as may be
832 prescribed by the division.
833 (4) FAILURE TO PAY TAX; PENALTIES.—An electronic gaming
834 machine licensee who does not make tax payments required under
835 this section is subject to an administrative penalty of up to
836 $10,000 for each day the tax payment is not remitted. All
837 administrative penalties imposed and collected shall be
838 deposited into the Pari-mutuel Wagering Trust Fund of the
839 Department of Business and Professional Regulation. If an
840 electronic gaming machine licensee does not pay penalties
841 imposed by the division, the division may suspend, revoke, or
842 refuse to renew the license of the electronic gaming machine
843 licensee.
844 (5) SUBMISSION OF FUNDS.—The division may require
845 electronic gaming machine licensees to remit taxes, fees, fines,
846 and assessments by electronic funds transfer.
847 Section 9. Electronic gaming machine occupational license;
848 findings; application; fee.—
849 (1) The Legislature finds that licensees and persons
850 associated with licensees require heightened state scrutiny. As
851 such licensees and persons associated with licensees shall
852 submit fingerprints for a criminal history records check.
853 (2)(a) The following electronic gaming machine occupational
854 licenses are required for persons who, by virtue of the
855 positions they hold, potentially may have access to electronic
856 gaming machine areas or to any other person or entity in one of
857 the following categories:
858 1. General occupational licenses for general employees,
859 including food service, maintenance, and other similar service
860 and support employees having access to an electronic gaming
861 machine area.
862 2. Professional occupational licenses for any person,
863 proprietorship, partnership, corporation, or other entity that
864 is authorized by an electronic gaming machine licensee to
865 manage, oversee, or otherwise control daily operations as an
866 electronic gaming machine manager, floor supervisor, security
867 personnel, or other similar position of oversight of gaming
868 operations, or any person who is not an employee of the
869 electronic gaming machine licensee and who provides maintenance,
870 repair, or upgrades or otherwise services an electronic gaming
871 machine or other electronic gaming machine equipment.
872 3. Business occupational licenses for any electronic gaming
873 machine management company or company associated with electronic
874 gaming, any person who manufactures, distributes, or sells
875 electronic gaming machines, electronic gaming machine
876 paraphernalia, or other associated equipment to electronic
877 gaming machine licensees, or any company that sells or provides
878 goods or services associated with electronic gaming to
879 electronic gaming machine licensees.
880 (b) The division may issue one license in order to combine
881 licenses under this section with pari-mutuel occupational
882 licenses and cardroom licenses pursuant to s. 550.105(2)(b),
883 Florida Statutes. The division shall adopt rules pertaining to
884 occupational licenses under this subsection. Such rules may
885 specify requirements and restrictions for licensed occupations
886 and categories, procedures to apply for a license or combination
887 of licenses, disqualifying criminal offenses for a licensed
888 occupation or categories of occupations, and which types of
889 occupational licenses may be combined into a single license. The
890 fingerprinting requirements of subsection (10) apply to any
891 combination license that includes electronic gaming machine
892 license privileges. The division may not adopt a rule allowing
893 the issuance of an occupational license to any person who does
894 not meet the minimum background qualifications of this section.
895 (c) Electronic gaming machine occupational licenses are not
896 transferable.
897 (3) An electronic gaming machine licensee may not employ or
898 otherwise allow a person to work at a licensed facility unless
899 such person holds the appropriate valid occupational license. An
900 electronic gaming machine licensee may not contract or otherwise
901 conduct business with a business that is required to hold an
902 electronic gaming machine occupational license unless the
903 business holds such a license. An electronic gaming machine
904 licensee may not employ or otherwise allow a person to work in a
905 supervisory or management professional level at a licensed
906 facility unless such person holds a valid electronic gaming
907 machine occupational license. All electronic gaming machine
908 occupational licensees, while present in electronic gaming
909 machine areas, shall display on their persons their occupational
910 license identification cards.
911 (4)(a) A person seeking an electronic gaming machine
912 occupational license or renewal thereof shall apply on forms
913 prescribed by the division and include payment of the
914 appropriate application fee. Initial and renewal applications
915 for electronic gaming machine occupational licenses must contain
916 all information that the division, by rule, requires.
917 (b) An electronic gaming machine license or combination
918 license is valid for the same term as a pari-mutuel occupational
919 license issued pursuant to s. 550.105(1), Florida Statutes.
920 (c) Pursuant to rules adopted by the division, any person
921 may apply for and, if qualified, be issued an electronic gaming
922 machine occupational license. The license shall be valid for a
923 period of 3 years upon payment of the full occupational license
924 fee for each of the 3 years for which the license is issued. The
925 electronic gaming machine occupational license is valid during
926 its specified term at any licensed facility where electronic
927 gaming machine gaming is authorized.
928 (d) The electronic gaming machine occupational license fee
929 for initial application and annual renewal shall be determined
930 by rule of the division, but may not exceed $50 for a general or
931 professional occupational license for an employee of the
932 electronic gaming machine licensee or $1,000 for a business
933 occupational license for nonemployees of the licensee who
934 provide goods or services to the electronic gaming machine
935 licensee. License fees for general occupational licenses shall
936 be paid by the electronic gaming machine licensee. Failure to
937 pay the required fee constitutes grounds for disciplinary action
938 by the division against the electronic gaming machine licensee,
939 but it is not a violation of this act or rules of the division
940 by the general occupational licensee and does not prohibit the
941 initial issuance or the renewal of the general occupational
942 license.
943 (5) The division may:
944 (a) Deny an application for, or revoke, suspend, or place
945 conditions or restrictions on, a license of an applicant or
946 licensee that has been refused a license by another state gaming
947 commission, governmental department, agency, or other authority
948 exercising regulatory jurisdiction over the gaming of another
949 state or jurisdiction; or
950 (b) Deny an application for, or suspend, or place
951 conditions on a license of any applicant or licensee that is
952 under suspension or has unpaid fines in another state or
953 jurisdiction.
954 (6)(a) The division may deny, suspend, revoke, or refuse to
955 renew any electronic gaming machine occupational license if the
956 applicant or licensee has violated this act or the rules
957 governing the conduct of persons connected with electronic games
958 or electronic gaming. In addition, the division may deny,
959 suspend, revoke, or refuse to renew any electronic gaming
960 machine occupational license if the applicant or licensee has
961 been convicted under the laws of this state or of another state,
962 or under the laws of the United States, of a capital felony, a
963 felony, or an offense in another state which would be a felony
964 under the laws of this state involving arson; trafficking in,
965 conspiracy to traffic in, smuggling, importing, conspiracy to
966 smuggle or import, or delivery, sale, or distribution of a
967 controlled substance; racketeering; or a crime showing a lack of
968 good moral character, or has had a gaming license revoked by
969 this state or another jurisdiction for any gaming-related
970 offense.
971 (b) The division may deny, revoke, or refuse to renew any
972 electronic gaming machine occupational license if the applicant
973 or licensee has been convicted of a felony or misdemeanor in
974 this state, in another state, or under the laws of the United
975 States if such felony or misdemeanor is related to gambling or
976 bookmaking as described in s. 849.25, Florida Statutes.
977 (c) As used in this subsection, the term “convicted” means
978 having been found guilty, with or without adjudication of guilt,
979 as a result of a jury verdict, nonjury trial, or entry of a plea
980 of guilty or nolo contendere.
981 (7) The division may deny, revoke, or suspend any
982 occupational license if the applicant or licensee accumulates
983 unpaid obligations, defaults in obligations, or issues drafts or
984 checks that are dishonored or for which payment is refused
985 without reasonable cause.
986 (8) The division may fine or suspend, revoke, or place
987 conditions upon the license of any licensee who provides false
988 information under oath regarding an application for a license or
989 an investigation by the division.
990 (9) The division may impose a civil fine of up to $5,000
991 for each violation of this act or the rules of the division in
992 addition to or in lieu of any other penalty. The division may
993 adopt a penalty schedule for violations for which it would
994 impose a fine in lieu of a suspension and adopt rules allowing
995 for the issuance of citations, including procedures to address
996 such citations, to persons who violate such rules. In addition
997 to any other penalty provided by law, the division may exclude
998 from all licensed electronic gaming machine facilities in this
999 state, for a period not to exceed the period of suspension,
1000 revocation, or ineligibility, any person whose occupational
1001 license application has been refused or who has been declared
1002 ineligible to hold an occupational license or whose occupational
1003 license has been suspended or revoked by the division.
1004 (10) Fingerprints for electronic gaming machine
1005 occupational license applications shall be taken in a manner
1006 approved by the division and shall be submitted electronically
1007 to the Department of Law Enforcement for state processing and to
1008 the Federal Bureau of Investigation for national processing for
1009 a criminal history record check. All persons as specified in s.
1010 550.1815(1)(a), Florida Statutes, who are employed by or working
1011 within licensed premises shall submit fingerprints for a
1012 criminal history records check and may not have been convicted
1013 of any disqualifying criminal offenses specified in subsection
1014 (6). Division employees and law enforcement officers assigned to
1015 work within such premises as part of their official duties are
1016 excluded from the criminal history record check requirements. As
1017 used in this subsection, the term “convicted” means having been
1018 found guilty, with or without adjudication of guilt, as a result
1019 of a jury verdict, nonjury trial, or entry of a plea of guilty
1020 or nolo contendere.
1021 (a) Fingerprints shall be taken in a manner approved by the
1022 division upon initial application, or as required thereafter by
1023 rule of the division, and shall be submitted electronically to
1024 the Department of Law Enforcement for state processing. The
1025 Department of Law Enforcement shall forward the fingerprints to
1026 the Federal Bureau of Investigation for national processing. The
1027 results of the criminal history record check shall be returned
1028 to the division for screening. Licensees shall provide necessary
1029 equipment, approved by the Department of Law Enforcement, to
1030 facilitate such electronic submission. The division requirements
1031 shall be instituted in consultation with the Department of Law
1032 Enforcement.
1033 (b) The cost of processing fingerprints and conducting a
1034 criminal history records check for a general occupational
1035 license shall be paid by the electronic gaming machine licensee.
1036 The cost of processing fingerprints and conducting a criminal
1037 history record check for a business or professional occupational
1038 license shall be paid by the person being checked. The
1039 Department of Law Enforcement may invoice the division for the
1040 fingerprints submitted each month.
1041 (c) All fingerprints submitted to the Department of Law
1042 Enforcement shall be retained by the Department of Law
1043 Enforcement and entered into the statewide automated fingerprint
1044 identification system as authorized by s. 943.05(2)(b), Florida
1045 Statutes, and shall be available for all purposes and uses
1046 authorized for arrest fingerprint cards in the statewide
1047 automated fingerprint identification system pursuant to s.
1048 943.051, Florida Statutes.
1049 (d) The Department of Law Enforcement shall search all
1050 arrest fingerprints received pursuant to s. 943.051, Florida
1051 Statutes, against the fingerprints retained in the statewide
1052 automated fingerprint identification system. Any arrest record
1053 that is identified with the retained fingerprints of a person
1054 subject to the criminal history screening requirements shall be
1055 reported to the division. Each licensed facility shall pay a fee
1056 for the cost of retention of the fingerprints and the ongoing
1057 searches under this paragraph. The division shall forward the
1058 fee to the Department of Law Enforcement. The amount of the fee
1059 to be imposed for such searches and the procedures for the
1060 retention of licensee fingerprints shall be as established by
1061 rule of the Department of Law Enforcement. The division shall
1062 inform the Department of Law Enforcement of any change in the
1063 license status of licensees whose fingerprints are retained.
1064 (e) The division shall request the Department of Law
1065 Enforcement to forward the fingerprints to the Federal Bureau of
1066 Investigation for a national criminal history records check
1067 every 3 years following issuance of a license. If the
1068 fingerprints of a person who is licensed have not been retained
1069 by the Department of Law Enforcement, the person must file a
1070 complete set of fingerprints as provided in paragraph (a). The
1071 division shall collect the fees for the cost of the national
1072 criminal history record check and shall forward the payment to
1073 the Department of Law Enforcement. The cost of processing
1074 fingerprints and conducting a criminal history record check for
1075 a general occupational license shall be paid by the electronic
1076 gaming machine licensee. The cost of processing fingerprints and
1077 conducting a criminal history record check for a business or
1078 professional occupational license shall be paid by the person
1079 being checked. The Department of Law Enforcement may invoice the
1080 division for the fingerprints submitted each month. Under
1081 penalty of perjury, each person who is licensed or fingerprinted
1082 must agree to inform the division within 48 hours if he or she
1083 is convicted of or enters a plea of guilty or nolo contendere to
1084 any disqualifying offense, regardless of adjudication.
1085 (11) All moneys collected pursuant to this section shall be
1086 deposited into the Pari-mutuel Wagering Trust Fund.
1087 Section 10. Prohibited relationships.—
1088 (1) A person employed by or performing any function on
1089 behalf of the division may not:
1090 (a) Be an officer, director, owner, or employee of any
1091 person or entity licensed by the division.
1092 (b) Have or hold any interest, direct or indirect, in or
1093 engage in any commerce or business relationship with any person
1094 licensed by the division.
1095 (2) A manufacturer or distributor of electronic gaming
1096 machines may not enter into any contract with an electronic
1097 gaming machine licensee which provides for any revenue sharing
1098 that is directly or indirectly calculated on the basis of a
1099 percentage of electronic gaming machine revenues. Any agreement
1100 in violation of this subsection is void.
1101 (3) A manufacturer or distributor of electronic gaming
1102 machines or equipment necessary for the operation of electronic
1103 gaming machines or an officer, director, or employee of any such
1104 manufacturer or distributor may not have any ownership or
1105 financial interest in an electronic gaming machine license or
1106 any business owned by an electronic gaming machine licensee.
1107 (4) An employee of the division or relative living in the
1108 same household as the employee may not wager on an electronic
1109 gaming machine located at a facility licensed by the division.
1110 (5) An occupational licensee or relative living in the same
1111 household as the licensee may not wager on an electronic gaming
1112 machine located at a facility operated by such licensee.
1113 Section 11. Prohibited acts; penalties.—
1114 (1) Except as otherwise provided by law and in addition to
1115 any other penalty, a person who knowingly makes or causes to be
1116 made, or aids, assists, or procures another to make, a false
1117 statement in any report, disclosure, application, or other
1118 document required under any law or rule regulating electronic
1119 gaming is subject to an administrative fine or civil penalty of
1120 up to $10,000.
1121 (2) Except as otherwise provided by law and in addition to
1122 any other penalty, a person who possesses an electronic gaming
1123 machine without a license or who possesses an electronic gaming
1124 machine at a location other than at the electronic gaming
1125 machine licensee’s facility is subject to an administrative fine
1126 or civil penalty of up to $10,000 per machine. This prohibition
1127 does not apply to:
1128 (a) Electronic gaming machine manufacturers or distributors
1129 that are licensed and authorized to maintain an electronic
1130 gaming machine storage and maintenance facility in this state.
1131 The division may adopt rules regarding security, inspection, and
1132 access to the storage facility.
1133 (b) Certified educational facilities that are authorized by
1134 the division to maintain electronic gaming machines for the sole
1135 purpose of education and licensure of electronic gaming machine
1136 technicians, inspectors, or investigators. The division and the
1137 Department of Law Enforcement may possess electronic gaming
1138 machines for training and testing purposes. The division may
1139 adopt rules regarding the regulation of such electronic gaming
1140 machines used for the sole purpose of education and licensure of
1141 electronic gaming machine technicians, inspectors, or
1142 investigators.
1143 (3) A person who knowingly excludes or attempts to exclude,
1144 anything of value from the deposit, counting, collection, or
1145 computation of revenues from electronic gaming machine activity,
1146 or a person who by trick, sleight-of-hand performance, fraud or
1147 fraudulent scheme, or device wins or attempts to win, for
1148 himself or herself or for another, money or property or a
1149 combination thereof, or reduces or attempts to reduce a losing
1150 wager in connection with electronic gaming commits a felony of
1151 the third degree, punishable as provided in s. 775.082, s.
1152 775.083, or s. 775.084, Florida Statutes.
1153 (4) Any person who manipulates or attempts to manipulate
1154 the outcome, payoff, or operation of an electronic gaming
1155 machine by physical tampering or the use of an object,
1156 instrument, or device, whether mechanical, electrical, or
1157 magnetic, or by other means, commits a felony of the third
1158 degree, punishable as provided in s. 775.082, s. 775.083, or s.
1159 775.084, Florida Statutes.
1160 (5) Theft of electronic gaming machine proceeds or property
1161 belonging to an electronic gaming machine operator, licensee, or
1162 licensed facility by an employee of the operator or facility or
1163 by an officer, partner, owner, or employee of a person
1164 contracted to provide services to the operator or facility
1165 constitutes a felony of the third degree, punishable as provided
1166 in s. 775.082 or s. 775.083, Florida Statutes.
1167 (6)(a) A law enforcement officer or electronic gaming
1168 machine operator who has probable cause to believe that a person
1169 has committed a violation of subsection (3), subsection (4), or
1170 subsection (5) and that officer or operator can recover the lost
1171 proceeds from the activity by taking the person into custody
1172 may, for the purpose of attempting to effect the recovery of the
1173 proceeds, take into custody on the premises and detain the
1174 person in a reasonable manner for a reasonable time. If the
1175 operator takes the person into custody, a law enforcement
1176 officer shall be called to the scene immediately. The taking
1177 into custody and detention by a law enforcement officer or
1178 electronic gaming machine operator, if done in compliance with
1179 this subsection, does not render such law enforcement officer,
1180 or the officer’s agency, or the electronic gaming machine
1181 operator criminally or civilly liable for false arrest, false
1182 imprisonment, or unlawful detention.
1183 (b) A law enforcement officer may arrest, on or off the
1184 premises and without warrant, any person if the officer has
1185 probable cause to believe that person has violated subsection
1186 (3), subsection (4), or subsection (5).
1187 (c) A person who resists the reasonable effort of a law
1188 enforcement officer or electronic gaming machine operator to
1189 take into custody a person who is violating subsection (3),
1190 subsection (4), or subsection (5) commits a misdemeanor of the
1191 first degree, punishable as provided in s. 775.082 or s.
1192 775.083, Florida Statutes, unless the person did not know or
1193 have reason to know that the person seeking to take him or her
1194 into custody was a law enforcement officer or electronic gaming
1195 machine operator.
1196 (7) The penalties imposed and collected under this section
1197 must be deposited into the Pari-mutuel Wagering Trust Fund of
1198 the Department of Business and Professional Regulation.
1199 Section 12. Legal devices.—Notwithstanding any provision of
1200 law to the contrary, electronic gaming machines manufactured,
1201 sold, distributed, possessed, or operated pursuant to the laws
1202 and rules regulating electronic gaming are lawful in this state.
1203 An electronic game or electronic gaming machine may not enter
1204 the state until it has been tested and certified by a licensed
1205 testing laboratory, and certified for play in the state. The
1206 division shall adopt rules regarding the testing, certification,
1207 control, and approval of electronic games and electronic gaming
1208 machines entering, departing, or moving within the state.
1209 Section 13. Exclusions of certain persons.—In addition to
1210 the power to exclude certain persons, the division may exclude
1211 any person from a facility of an electronic gaming machine
1212 licensee in this state for conduct that would constitute, if the
1213 person were a licensee, a violation of this act or the rules of
1214 the division. The division may exclude a person who has been
1215 ejected from a gaming facility or who has been excluded from a
1216 gaming facility in another state by the governmental authority
1217 exercising regulatory jurisdiction over the gaming in such other
1218 state. This section does not abrogate the common law right of an
1219 electronic gaming machine licensee to exclude a patron.
1220 Section 14. Persons prohibited from operating electronic
1221 gaming machines.—
1222 (1) A person who has not attained 18 years of age may not
1223 operate or play an electronic gaming machine or have access to
1224 the designated electronic gaming machine area.
1225 (2) An electronic gaming machine licensee or agent or
1226 employee of an electronic gaming machine licensee may not
1227 knowingly allow a person who has not attained 18 years of age
1228 to:
1229 (a) Play or operate an electronic gaming machine.
1230 (b) Be employed in any position allowing or requiring
1231 access to the designated gaming area of a facility of an
1232 electronic gaming machine licensee.
1233 (c) Have access to the designated electronic gaming machine
1234 area of a facility of an electronic gaming machine licensee.
1235 (3) A licensed facility shall post clear and conspicuous
1236 signage within the designated electronic gaming machine areas
1237 which states:
1238
1239 THE PLAYING OF ELECTRONIC GAMING MACHINES BY PERSONS UNDER THE
1240 AGE OF 18 IS AGAINST FLORIDA LAW (CITE TO FLORIDA STATUTES
1241 SECTION). PROOF OF AGE MAY BE REQUIRED AT ANY TIME.
1242 Section 15. Electronic gaming machine areas.—
1243 (1) An electronic gaming machine licensee may make
1244 available for play up to 1,000 electronic gaming machines within
1245 an eligible facility in a designated electronic gaming machine
1246 area. No more than 1,000 electronic gaming machines shall be
1247 authorized at a facility regardless of the number of
1248 permitholders conducting operations at that facility.
1249 (2) The electronic gaming machine licensee shall display
1250 pari-mutuel races or games within the designated electronic
1251 gaming machine areas and offer patrons within such areas the
1252 opportunity to wager on live, intertrack, and simulcast races.
1253 (3) The division shall require the posting of signs warning
1254 of the risks and dangers of gambling, showing the odds of
1255 winning, and informing patrons of the toll-free telephone number
1256 available to provide information and referral services regarding
1257 compulsive or problem gambling.
1258 (4) Designated electronic gaming machine areas may be
1259 located within a live gaming facility or an existing building
1260 that is contiguous and connected to the live gaming facility. If
1261 such gaming area is to be located in a building that is not yet
1262 constructed, the new building must be contiguous and connected
1263 to the live gaming facility.
1264 (5) An electronic gaming machine licensee shall provide
1265 adequate office space at no cost to the division and the
1266 Department of Law Enforcement for the oversight of electronic
1267 gaming machine operations. The division shall adopt rules
1268 establishing criteria for adequate space, configuration, and
1269 location and needed electronic and technological requirements.
1270 Section 16. Days and hours of operation.—Electronic gaming
1271 machine areas may be open daily throughout the year. They may be
1272 open a cumulative total of 18 hours per day on Monday through
1273 Friday and 24 hours per day on Saturday and Sunday and on
1274 holidays specified in s. 110.117(1), Florida Statutes.
1275 Section 17. Penalties.—The division may revoke or suspend
1276 an electronic gaming machine license issued under this act upon
1277 the willful violation by the licensee of any law or rule
1278 regulating electronic gaming. In lieu of suspending or revoking
1279 an electronic gaming machine license, the division may impose a
1280 civil penalty against the licensee for such violation. Except as
1281 otherwise provided in this act, the division may not impose a
1282 penalty that exceeds $100,000 for each count or separate
1283 offense. All fines collected must be deposited into the Pari
1284 mutuel Wagering Trust Fund of the Department of Business and
1285 Professional Regulation.
1286 Section 18. Compulsive or addictive gambling prevention
1287 program.—
1288 (1) Each electronic gaming machine licensee shall offer
1289 training to employees on responsible gaming and shall work with
1290 a compulsive or addictive gambling prevention program to
1291 recognize problem gaming situations and implement responsible
1292 gaming programs and practices.
1293 (2) The division shall, subject to competitive bidding,
1294 contract for services related to the prevention of compulsive
1295 and addictive gambling. The contract shall require an
1296 advertising program to encourage responsible gaming practices
1297 and publicize a gambling telephone help line. Such
1298 advertisements must be made both publicly and inside the
1299 designated electronic gaming machine areas of the licensee’s
1300 facilities. The terms of any contract for such services shall
1301 include accountability standards for any private provider. The
1302 failure of a private provider to meet any material term of the
1303 contract, including the accountability standards, constitutes a
1304 breach of contract or grounds for nonrenewal.
1305 (3) The compulsive or addictive gambling prevention program
1306 shall be funded from an annual nonrefundable regulatory fee of
1307 $250,000 paid by each licensee.
1308 Section 19. Caterer’s license.—An electronic gaming machine
1309 licensee is entitled to a caterer’s license pursuant to s.
1310 565.02, Florida Statutes, on days on which the pari-mutuel
1311 facility is open to the public for electronic gaming machine
1312 play.
1313 Section 20. Prohibited activities and devices; exceptions.
1314 (1) Complimentary or reduced-cost alcoholic beverages may
1315 not be served to persons in the designated electronic gaming
1316 machine area. Alcoholic beverages served to persons in the
1317 designated electronic gaming machine area shall cost at least
1318 the same amount as alcoholic beverages served to the general
1319 public at any bar within the facility.
1320 (2) An electronic gaming machine licensee may not make
1321 loans, provide credit, or advance cash to enable a person to
1322 play an electronic gaming machine. This subsection does not
1323 prohibit automated ticket redemption machines that dispense cash
1324 from the redemption of tickets from being located in the
1325 designated electronic gaming machine area.
1326 (3) An automated teller machine or similar device designed
1327 to provide credit or dispense cash may not be located within the
1328 designated electronic gaming machine area.
1329 (4)(a) An electronic gaming machine licensee may not accept
1330 or cash a check from any person within the designated electronic
1331 gaming machine area of a facility.
1332 (b) Except as provided in paragraph (c) for employees of
1333 the facility, an electronic gaming machine licensee may not
1334 accept or cash for any person within the facility a government
1335 issued check, third-party check, or payroll check made payable
1336 to an individual.
1337 (c) Outside the designated electronic gaming machine area,
1338 an electronic gaming machine licensee or operator may accept or
1339 cash a check for an employee of the facility who is prohibited
1340 from wagering on an electronic gaming machine under s.
1341 551.108(5), Florida Statutes, a check made directly payable to a
1342 person licensed by the division, or a check made directly
1343 payable to the licensee or operator from:
1344 1. A pari-mutuel patron; or
1345 2. A pari-mutuel facility in any state.
1346 (d) Unless accepting or cashing a check is prohibited by
1347 this subsection, an electronic gaming machine licensee or
1348 operator may accept and deposit in its accounts checks received
1349 in the normal course of business.
1350 (5) An electronic gaming machine, or the computer operating
1351 system linked to an electronic gaming machine, may be linked to
1352 any other electronic gaming machine or computer operating system
1353 within this state.
1354 (6) An electronic gaming machine located within a licensed
1355 facility may accept tickets or electronic or account-based cards
1356 for wagering. Such machines may return or deliver payouts to the
1357 players in the form of tickets or electronic or account-based
1358 credits that may be exchanged for cash, merchandise, or other
1359 items of value. The use of coins, currency, credit or debit
1360 cards, tokens, or similar objects is prohibited.
1361 Section 21. Rulemaking.—The division may adopt rules to
1362 administer this act.
1363 Section 22. Preemption.—The Legislature finds and declares
1364 that it has exclusive authority over the conduct of all wagering
1365 occurring at electronic gaming machine facilities in this state.
1366 Only the Division of Pari-mutuel Wagering and other authorized
1367 state agencies may administer this act and regulate the
1368 electronic gaming machine industry, including operation of
1369 electronic gaming machine facilities, games, electronic gaming
1370 machines, and facilities-based computer systems authorized in
1371 this act and the rules adopted by the division.
1372 Section 23. Application to bingo games operated by
1373 charitable or nonprofit organizations.—Sections 1 through 22 of
1374 this act do not apply to the use of player-operated bingo aides
1375 used in bingo games conducted by charitable, nonprofit, or
1376 veterans’ organizations authorized to conduct bingo under s.
1377 849.0931, Florida Statutes. Sections 1 through 22 of this act do
1378 not apply to game promotions or operators regulated under s.
1379 849.094, Florida Statutes.
1380 Section 24. Paragraph (x) is added to subsection (1) of
1381 section 215.22, Florida Statutes, to read:
1382 215.22 Certain income and certain trust funds exempt.—
1383 (1) The following income of a revenue nature or the
1384 following trust funds shall be exempt from the appropriation
1385 required by s. 215.20(1):
1386 (x) Taxes imposed on electronic gaming and electronic
1387 gaming machines at eligible pari-mutuel facilities.
1388 Section 25. The Department of Business and Professional
1389 Regulation may expend the unreserved cash balance in the Pari
1390 mutuel Wagering Trust Fund received from other revenue sources
1391 to implement electronic gaming regulation and investigations
1392 during the 2009-2010 fiscal year. Before the use of such other
1393 revenues, the department shall submit a repayment plan for
1394 approval by the Executive Office of the Governor in consultation
1395 with the chair and vice chair of the Legislative Budget
1396 Commission. The department shall repay such funds using
1397 electronic gaming machine license revenue sources by April 1,
1398 2010. The repaid funds are subject to the requirements of s.
1399 550.135(2), Florida Statutes.
1400 Section 26. Present subsections (11), (32), and (38) of
1401 section 550.002, Florida Statutes, are amended, a new subsection
1402 (15) is added to that section, and present subsections (15)
1403 through (39) of that section are renumbered as subsections (16)
1404 through (40), respectively, to read:
1405 550.002 Definitions.—As used in this chapter, the term:
1406 (11) “Full schedule of live racing or games” means, for a
1407 greyhound or jai alai permitholder, the conduct of a combination
1408 of at least 100 live evening or matinee performances during the
1409 preceding year; for a permitholder who has a converted permit or
1410 filed an application on or before June 1, 1990, for a converted
1411 permit, the conduct of a combination of at least 100 live
1412 evening and matinee wagering performances during either of the 2
1413 preceding years; for a jai alai permitholder who does not
1414 operate slot machines, electronic gaming machines, or historical
1415 racing systems in its pari-mutuel facility, who has conducted at
1416 least 100 live performances per year for at least 10 years after
1417 December 31, 1992, and whose handle on live jai alai games
1418 conducted at its pari-mutuel facility has been less than $4
1419 million per state fiscal year for at least 2 consecutive years
1420 after June 30, 1992, the conduct of a combination of at least 40
1421 live evening or matinee performances during the preceding year;
1422 for a jai alai permitholder who operates slot machines
1423 electronic gaming machines, or historical racing systems in its
1424 pari-mutuel facility, the conduct of a combination of at least
1425 150 performances during the preceding year; for a harness
1426 permitholder, the conduct of at least 100 live regular wagering
1427 performances during the preceding year; for a quarter horse
1428 permitholder, at the permitholder’s facility, unless an
1429 alternative schedule of at least 20 live regular wagering
1430 performances is agreed upon by the permitholder and the
1431 horsemen’s association representing the majority of the quarter
1432 racehorse owners and trainers at the facility and filed with the
1433 division with its annual application, in the year 2009, the
1434 conduct of at least 20 live regular wagering performances, in
1435 the years 2010 and 2011, the conduct of at least 30 live regular
1436 wagering performances, and for every year after the year 2011,
1437 the conduct of at least 40 live regular wagering performances
1438 during the preceding year; for a quarter horse permitholder
1439 leasing another licensed racetrack, the conduct of 160 events at
1440 the leased facility; and for a thoroughbred permitholder, the
1441 conduct of at least 40 live regular wagering performances during
1442 the preceding year. For a permitholder which is restricted by
1443 statute to certain operating periods within the year when other
1444 members of its same class of permit are authorized to operate
1445 throughout the year, the specified number of live performances
1446 which constitute a full schedule of live racing or games shall
1447 be adjusted pro rata in accordance with the relationship between
1448 its authorized operating period and the full calendar year and
1449 the resulting specified number of live performances shall
1450 constitute the full schedule of live games for such permitholder
1451 and all other permitholders of the same class within 100 air
1452 miles of such permitholder. A live performance must consist of
1453 no fewer than eight races or games conducted live for each of a
1454 minimum of three performances each week at the permitholder’s
1455 licensed facility under a single admission charge.
1456 (15) “Historical racing system” means a form of pari-mutuel
1457 wagering based on audio or video signals of races conducted at
1458 licensed pari-mutuel facilities in state or out of state which
1459 are displayed at individual wagering terminals at licensed pari
1460 mutuel facilities.
1461 (33)(32) “Simulcasting” means broadcasting events occurring
1462 live or recorded at an in-state location to an out-of-state
1463 location, or receiving at an in-state location events occurring
1464 live or recorded at an out-of-state location, by the
1465 transmittal, retransmittal, reception, and rebroadcast of
1466 television or radio signals by wire, cable, satellite,
1467 microwave, or other electrical or electronic means for receiving
1468 or rebroadcasting the events.
1469 (39)(38) “Year,” for purposes of determining a full
1470 schedule of live racing, means the state fiscal calendar year.
1471 Section 27. Subsection (3) of section 550.01215, Florida
1472 Statutes, is amended to read:
1473 550.01215 License application; periods of operation; bond,
1474 conversion of permit.—
1475 (3) Except as provided in s. 550.5251 for thoroughbred
1476 racing, The division shall issue each license no later than
1477 March 15. Each permitholder shall operate all performances at
1478 the date and time specified on its license. The division shall
1479 have the authority to approve minor changes in racing dates
1480 after a license has been issued. The division may approve
1481 changes in racing dates after a license has been issued when
1482 there is no objection from any operating permitholder located
1483 within 50 miles of the permitholder requesting the changes in
1484 operating dates. In the event of an objection, the division
1485 shall approve or disapprove the change in operating dates based
1486 upon the impact on operating permitholders located within 50
1487 miles of the permitholder requesting the change in operating
1488 dates. In making the determination to change racing dates, the
1489 division shall take into consideration the impact of such
1490 changes on state revenues.
1491 Section 28. Paragraph (b) of subsection (1) and subsections
1492 (5) and (6) of section 550.0951, Florida Statutes, are amended
1493 to read:
1494 550.0951 Payment of daily license fee and taxes;
1495 penalties.—
1496 (1)
1497 (b) Each permitholder that cannot utilize the full amount
1498 of the exemption of $360,000 or $500,000 provided in s.
1499 550.09514(1) or the daily license fee credit provided in this
1500 section may, after notifying the division in writing, elect once
1501 per state fiscal year on a form provided by the division to
1502 transfer such exemption or credit or any portion thereof to any
1503 greyhound permitholder which acts as a host track to such
1504 permitholder for the purpose of intertrack wagering. Once an
1505 election to transfer such exemption or credit is filed with the
1506 division, it shall not be rescinded. The division shall
1507 disapprove the transfer when the amount of the exemption or
1508 credit or portion thereof is unavailable to the transferring
1509 permitholder or when the permitholder who is entitled to
1510 transfer the exemption or credit or who is entitled to receive
1511 the exemption or credit owes taxes to the state pursuant to a
1512 deficiency letter or administrative complaint issued by the
1513 division. Upon approval of the transfer by the division, the
1514 transferred tax exemption or credit shall be effective for the
1515 first performance of the next payment biweekly pay period as
1516 specified in subsection (5). The exemption or credit transferred
1517 to such host track may be applied by such host track against any
1518 taxes imposed by this chapter or daily license fees imposed by
1519 this chapter. The greyhound permitholder host track to which
1520 such exemption or credit is transferred shall reimburse such
1521 permitholder the exact monetary value of such transferred
1522 exemption or credit as actually applied against the taxes and
1523 daily license fees of the host track. The division shall ensure
1524 that all transfers of exemption or credit are made in accordance
1525 with this subsection and shall have the authority to adopt rules
1526 to ensure the implementation of this section.
1527 (5)(a) Each permitholder conducting historical racing
1528 pursuant to 550.810 shall pay a tax equal to 4 percent of the
1529 handle from the historical racing system.
1530 (b) The takeout of a pari-mutuel pool is 12 percent of the
1531 handle from the historical racing system.
1532 (c) The permitholder shall pay 0.9 percent of the handle to
1533 the permit holder’s purse account.
1534 (d) The permitholder shall pay 0.1 percent of the handle to
1535 the:
1536 1. Florida Thoroughbred Breeders’ Association, Inc., for
1537 the payment of breeders’ awards, if the host track is a
1538 thoroughbred track;
1539 2. Florida Standardbred Breeders and Owners Association,
1540 Inc., for the payment of breeders’ awards, stallion awards,
1541 stallion stakes, additional purses, and prizes for, and the
1542 general promotion of owning and breeding, Florida-bred
1543 standardbred horses, if the host track is a harness track; or
1544 3. Florida Quarter Horse Breeders and Owners Association,
1545 Inc., for the payment of breeders’ awards and general promotion,
1546 if the host track is a quarter horse track.
1547 (e) The permitholder, upon authorization to conduct
1548 historical racing pursuant to 550.810 and annually thereafter,
1549 on the anniversary date of the authorization, shall pay a fee to
1550 the division of $1 million. The fee shall be deposited into the
1551 Pari-mutuel Wagering Trust Fund of the Department of Business
1552 and Professional Regulation to be used by the division and the
1553 Department of Law Enforcement for investigations, regulation of
1554 historic racing, and enforcement of historic racing provisions.
1555 (6)(5) PAYMENT AND DISPOSITION OF FEES AND TAXES.—Payments
1556 Payment for the admission tax, tax on handle, and the breaks tax
1557 imposed by this section shall be paid to the division. The
1558 division shall deposit these sums with the Chief Financial
1559 Officer, to the credit of the Pari-mutuel Wagering Trust Fund,
1560 hereby established. The permitholder shall remit to the division
1561 payment for the daily license fee, the admission tax, the tax on
1562 handle, and the breaks tax. Such payments shall be remitted by 3
1563 p.m. on the 5th day of each calendar month Wednesday of each
1564 week for taxes imposed and collected for the preceding calendar
1565 month week ending on Sunday. If the 5th day of the calendar
1566 month falls on a weekend, payments shall be remitted by 3 p.m.
1567 the first Monday following the weekend. Permitholders shall file
1568 a report under oath by the 5th day of each calendar month for
1569 all taxes remitted during the preceding calendar month. Such
1570 payments shall be accompanied by a report under oath showing the
1571 total of all admissions, the pari-mutuel wagering activities for
1572 the preceding calendar month, and such other information as may
1573 be prescribed by the division.
1574 (7)(6) PENALTIES.—
1575 (a) The failure of any permitholder to make payments as
1576 prescribed in subsection (6) (5) is a violation of this section,
1577 and the permitholder may be subjected by the division to a civil
1578 penalty of up to $1,000 for each day the tax payment is not
1579 remitted. All penalties imposed and collected shall be deposited
1580 in the General Revenue Fund. If a permitholder fails to pay
1581 penalties imposed by order of the division under this
1582 subsection, the division may suspend or revoke the license of
1583 the permitholder, cancel the permit of the permitholder, or deny
1584 issuance of any further license or permit to the permitholder.
1585 (b) In addition to the civil penalty prescribed in
1586 paragraph (a), any willful or wanton failure by any permitholder
1587 to make payments of the daily license fee, admission tax, tax on
1588 handle, or breaks tax constitutes sufficient grounds for the
1589 division to suspend or revoke the license of the permitholder,
1590 to cancel the permit of the permitholder, or to deny issuance of
1591 any further license or permit to the permitholder.
1592 Section 29. Paragraph (e) of subsection (2) and paragraph
1593 (b) of subsection (3) of section 550.09511, Florida Statutes,
1594 are amended to read:
1595 550.09511 Jai alai taxes; abandoned interest in a permit
1596 for nonpayment of taxes.—
1597 (2) Notwithstanding the provisions of s. 550.0951(3)(b),
1598 wagering on live jai alai performances shall be subject to the
1599 following taxes:
1600 (e) The payment of taxes pursuant to paragraphs (b), (c),
1601 and (d) shall be calculated and commence beginning the day after
1602 the biweekly period in which the permitholder is first entitled
1603 to the reduced rate specified in this section and the report of
1604 taxes required by s. 550.0951(5) is submitted to the division.
1605 (3)
1606 (b) The payment of taxes pursuant to paragraph (a) shall be
1607 calculated and commence beginning the day after the biweekly
1608 period in which the permitholder is first entitled to the
1609 reduced rate specified in this subsection.
1610 Section 30. Subsection (1) of section 550.09514, Florida
1611 Statutes, is amended to read:
1612 550.09514 Greyhound dogracing taxes; purse requirements.—
1613 (1) Wagering on greyhound racing is subject to a tax on
1614 handle for live greyhound racing as specified in s. 550.0951(3).
1615 However, each permitholder shall pay no tax on handle until such
1616 time as this subsection has resulted in a tax savings per state
1617 fiscal year of $360,000. Thereafter, each permitholder shall pay
1618 the tax as specified in s. 550.0951(3) on all handle for the
1619 remainder of the permitholder’s current race meet, and the tax
1620 must be calculated and commence beginning the day after the
1621 biweekly period in which the permitholder reaches the maximum
1622 tax savings per state fiscal year provided in this section. For
1623 the three permitholders that conducted a full schedule of live
1624 racing in 1995, and are closest to another state that authorizes
1625 greyhound pari-mutuel wagering, the maximum tax savings per
1626 state fiscal year shall be $500,000. The provisions of this
1627 subsection relating to tax exemptions shall not apply to any
1628 charity or scholarship performances conducted pursuant to s.
1629 550.0351.
1630 Section 31. Subsections (1), (2), (5), (6), and (10) of
1631 section 550.105, Florida Statutes, are amended to read:
1632 550.105 Occupational licenses of racetrack employees; fees;
1633 denial, suspension, and revocation of license; penalties and
1634 fines.—
1635 (1) Each person connected with a racetrack or jai alai
1636 fronton, as specified in paragraph (2)(a), shall purchase from
1637 the division an annual occupational license, which license is
1638 valid from May 1 until June 30 of the following year. All moneys
1639 collected pursuant to this section each fiscal year shall be
1640 deposited into the Pari-mutuel Wagering Trust Fund. Any person
1641 may, at her or his option and Pursuant to the rules adopted by
1642 the division, purchase an occupational license may be valid for
1643 a period of up to 3 years for a fee that does not exceed if the
1644 purchaser of the license pays the full occupational license fee
1645 for each of the years for which the license is purchased at the
1646 time the 3-year license is requested. The occupational license
1647 shall be valid during its specified term at any pari-mutuel
1648 facility.
1649 (2)(a) The following licenses shall be issued to persons or
1650 entities with access to the backside, racing animals, jai alai
1651 players’ room, jockeys’ room, drivers’ room, totalisator room,
1652 the mutuels, or money room, or to persons who, by virtue of the
1653 position they hold, might be granted access to these areas or to
1654 any other person or entity in one of the following categories
1655 and with scheduled annual fees not to exceed the following
1656 amounts as follows:
1657 1. Business licenses: any business such as a vendor,
1658 contractual concessionaire, contract kennel, business owning
1659 racing animals, trust or estate, totalisator company, stable
1660 name, or other fictitious name: $50.
1661 2. Professional occupational licenses: professional persons
1662 with access to the backside of a racetrack or players’ quarters
1663 in jai alai such as trainers, officials, veterinarians, doctors,
1664 nurses, EMT’s, jockeys and apprentices, drivers, jai alai
1665 players, owners, trustees, or any management or officer or
1666 director or shareholder or any other professional-level person
1667 who might have access to the jockeys’ room, the drivers’ room,
1668 the backside, racing animals, kennel compound, or managers or
1669 supervisors requiring access to mutuels machines, the money
1670 room, or totalisator equipment: $40.
1671 3. General occupational licenses: general employees with
1672 access to the jockeys’ room, the drivers’ room, racing animals,
1673 the backside of a racetrack or players’ quarters in jai alai,
1674 such as grooms, kennel helpers, leadouts, pelota makers, cesta
1675 makers, or ball boys, or a practitioner of any other occupation
1676 who would have access to the animals, the backside, or the
1677 kennel compound, or who would provide the security or
1678 maintenance of these areas, or mutuel employees, totalisator
1679 employees, money-room employees, or any employee with access to
1680 mutuels machines, the money room, or totalisator equipment or
1681 who would provide the security or maintenance of these areas:
1682 $10.
1683
1684 The individuals and entities that are licensed under this
1685 paragraph require heightened state scrutiny, including the
1686 submission by the individual licensees or persons associated
1687 with the entities described in this chapter of fingerprints for
1688 a Federal Bureau of Investigation criminal records check.
1689 (b) The division shall adopt rules pertaining to pari
1690 mutuel occupational licenses, licensing periods, and renewal
1691 cycles.
1692 (5)(a) The division may:
1693 1. Deny a license to or revoke, suspend, or place
1694 conditions upon or restrictions on a license of any person who
1695 has been refused a license by any other state racing commission
1696 or racing authority;
1697 2. Deny, suspend, or place conditions on a license of any
1698 person who is under suspension or has unpaid fines in another
1699 jurisdiction;
1700
1701 if the state racing commission or racing authority of such other
1702 state or jurisdiction extends to the division reciprocal
1703 courtesy to maintain the disciplinary control.
1704 (b) The division may deny, suspend, revoke, or declare
1705 ineligible any occupational license if the applicant for or
1706 holder thereof has violated the provisions of this chapter or
1707 the rules of the division governing the conduct of persons
1708 connected with racetracks and frontons. In addition, the
1709 division may deny, suspend, revoke, or declare ineligible any
1710 occupational license if the applicant for such license has been
1711 convicted in this state, in any other state, or under the laws
1712 of the United States of a capital felony, a felony, or an
1713 offense in any other state which would be a felony under the
1714 laws of this state involving arson; trafficking in, conspiracy
1715 to traffic in, smuggling, importing, conspiracy to smuggle or
1716 import, or delivery, sale, or distribution of a controlled
1717 substance; or a crime involving a lack of good moral character,
1718 or has had a pari-mutuel license revoked by this state or any
1719 other jurisdiction for an offense related to pari-mutuel
1720 wagering.
1721 (c) The division may deny, declare ineligible, or revoke
1722 any occupational license if the applicant for such license has
1723 been convicted of a felony or misdemeanor in this state, in any
1724 other state, or under the laws of the United States, if such
1725 felony or misdemeanor is related to gambling or bookmaking, as
1726 contemplated in s. 849.25, or involves cruelty to animals. If
1727 the applicant establishes that she or he is of good moral
1728 character, that she or he has been rehabilitated, and that the
1729 crime she or he was convicted of is not related to pari-mutuel
1730 wagering and is not a capital offense, the restrictions
1731 excluding offenders may be waived by the director of the
1732 division.
1733 (d) For purposes of this subsection, the term “convicted”
1734 means having been found guilty, with or without adjudication of
1735 guilt, as a result of a jury verdict, nonjury trial, or entry of
1736 a plea of guilty or nolo contendere. However, the term
1737 “conviction” does not apply to a crime committed prior to the
1738 effective date of this subsection in a manner that would
1739 invalidate any occupational license issued prior to the
1740 effective date of this subsection or subsequent renewal for any
1741 person holding such a license.
1742 (e)(d) If an occupational license will expire by division
1743 rule during the period of a suspension the division intends to
1744 impose, or if a license would have expired but for pending
1745 administrative charges and the occupational licensee is found to
1746 be in violation of any of the charges, the license may be
1747 revoked and a time period of license ineligibility may be
1748 declared. The division may bring administrative charges against
1749 any person not holding a current license for violations of
1750 statutes or rules which occurred while such person held an
1751 occupational license, and the division may declare such person
1752 ineligible to hold a license for a period of time. The division
1753 may impose a civil fine of up to $1,000 for each violation of
1754 the rules of the division in addition to or in lieu of any other
1755 penalty provided for in this section. In addition to any other
1756 penalty provided by law, the division may exclude from all pari
1757 mutuel facilities in this state, for a period not to exceed the
1758 period of suspension, revocation, or ineligibility, any person
1759 whose occupational license application has been denied by the
1760 division, who has been declared ineligible to hold an
1761 occupational license, or whose occupational license has been
1762 suspended or revoked by the division.
1763 (f)(e) The division may cancel any occupational license
1764 that has been voluntarily relinquished by the licensee.
1765 (6) In order to promote the orderly presentation of pari
1766 mutuel meets authorized in this chapter, the division may issue
1767 a temporary occupational license. The division shall adopt rules
1768 to implement this subsection. However, no temporary occupational
1769 license shall be valid for more than 30 days, and no more than
1770 one temporary license may be issued for any person in any year.
1771 (10)(a) Upon application for an occupational license, the
1772 division may require the applicant’s full legal name; any
1773 nickname, alias, or maiden name for the applicant; name of the
1774 applicant’s spouse; the applicant’s date of birth, residence
1775 address, mailing address, residence address and business phone
1776 number, and social security number; disclosure of any felony or
1777 any conviction involving bookmaking, illegal gambling, or
1778 cruelty to animals; disclosure of any past or present
1779 enforcement or actions by any racing or gaming agency against
1780 the applicant; and any information the division determines is
1781 necessary to establish the identity of the applicant or to
1782 establish that the applicant is of good moral character.
1783 Fingerprints shall be taken in a manner approved by the division
1784 and then shall be submitted to the Federal Bureau of
1785 Investigation, or to the association of state officials
1786 regulating pari-mutuel wagering pursuant to the Federal Pari
1787 mutuel Licensing Simplification Act of 1988. The cost of
1788 processing fingerprints shall be borne by the applicant and paid
1789 to the association of state officials regulating pari-mutuel
1790 wagering from the trust fund to which the processing fees are
1791 deposited. The division shall require each applicant for an
1792 occupational license to have the applicant’s signature witnessed
1793 and notarized or signed in the presence of a division official.
1794 The division, by rule, may require additional information from
1795 licensees which is reasonably necessary to regulate the
1796 industry. The division may, by rule, exempt certain occupations
1797 or groups of persons from the fingerprinting requirements.
1798 (b) All fingerprints required by this section which are
1799 submitted to the Department of Law Enforcement shall be retained
1800 by the Department of Law Enforcement and entered into the
1801 statewide automated fingerprint identification system as
1802 authorized by s. 943.05(2)(b) and shall be available for all
1803 purposes and uses authorized for arrest fingerprint cards
1804 entered into the statewide automated fingerprint identification
1805 system pursuant to s. 943.051.
1806 (c) The Department of Law Enforcement shall search all
1807 arrest fingerprints received pursuant to s. 943.051 against the
1808 fingerprints retained in the statewide automated fingerprint
1809 identification system under paragraph (b). Any arrest record
1810 that is identified with the retained fingerprints of a person
1811 subject to the criminal history screening requirements of this
1812 section shall be reported to the division. Each licensee shall
1813 pay a fee to the division for the cost of retention of the
1814 fingerprints and the ongoing searches under this paragraph. The
1815 division shall forward the payment to the Department of Law
1816 Enforcement. The amount of the fee to be imposed for performing
1817 these searches and the procedures for the retention of licensee
1818 fingerprints shall be as established by rule of the Department
1819 of Law Enforcement. The division shall inform the Department of
1820 Law Enforcement of any change in the license status of licensees
1821 whose fingerprints are retained under paragraph (b).
1822 (d) The division shall request the Department of Law
1823 Enforcement to forward the fingerprints to the Federal Bureau of
1824 Investigation for a national criminal history records check at
1825 least once every 5 years following issuance of a license. If the
1826 fingerprints of a person who is licensed have not been retained
1827 by the Department of Law Enforcement, the person must file a
1828 complete set of fingerprints as provided in paragraph (a). The
1829 division shall collect the fees for the cost of the national
1830 criminal history record check under this paragraph and forward
1831 the payment to the Department of Law Enforcement. The cost of
1832 processing fingerprints and conducting a criminal history record
1833 check under this paragraph for a general occupational license
1834 shall be borne by the applicant. The cost of processing
1835 fingerprints and conducting a criminal history record check
1836 under this paragraph for a business or professional occupational
1837 license shall be borne by the person being checked. The
1838 Department of Law Enforcement may invoice the division for the
1839 fingerprints submitted each month. Under penalty of perjury,
1840 each person who is licensed or who is fingerprinted as required
1841 by this section must agree to inform the division within 48
1842 hours if he or she is convicted of or has entered a plea of
1843 guilty or nolo contendere to any disqualifying offense,
1844 regardless of adjudication.
1845 Section 32. Section 550.135, Florida Statutes, is amended
1846 to read:
1847 550.135 Division of moneys derived under this law.—All
1848 moneys that are deposited with the Chief Financial Officer to
1849 the credit of the Pari-mutuel Wagering Trust Fund shall be
1850 distributed as follows:
1851 (1) The daily license fee revenues collected pursuant to s.
1852 550.0951(1) shall be used to fund the operating cost of the
1853 division and to provide a proportionate share of the operation
1854 of the office of the secretary and the Division of
1855 Administration of the Department of Business and Professional
1856 Regulation; however, other collections in the Pari-mutuel
1857 Wagering Trust Fund may also be used to fund the operation of
1858 the division in accordance with authorized appropriations.
1859 (2) All unappropriated funds in excess of $1.5 million in
1860 the Pari-mutuel Wagering Trust Fund, collected pursuant to this
1861 chapter, shall be deposited with the Chief Financial Officer to
1862 the credit of the General Revenue Fund.
1863 (3) The slot machine license fee, the slot machine
1864 occupational license fee, and the compulsive or addictive
1865 gambling prevention program fee collected pursuant to ss.
1866 551.106, 551.107(2)(a)1., and 551.118 shall be used to fund the
1867 direct and indirect operating expenses of the division’s slot
1868 machine regulation operations and to provide funding for
1869 relevant enforcement activities in accordance with authorized
1870 appropriations. Funds deposited into the Pari-mutuel Wagering
1871 Trust Fund pursuant to ss. 551.106, 551.107(2)(a)1., and 551.118
1872 shall be reserved in the trust fund for slot machine regulation
1873 operations. On June 30, any unappropriated funds in excess of
1874 those necessary for incurred obligations and subsequent year
1875 cash flow for slot machine regulation operations shall be
1876 deposited with the Chief Financial Officer to the credit of the
1877 General Revenue Fund.
1878 (4) The electronic gaming machine license fee, the
1879 electronic gaming machine occupational license fee, and the
1880 compulsive or addictive gambling prevention program fee
1881 collected pursuant to subsection (1) of section 7 of this act
1882 and subsection (3) of section 17 of this act shall be used to
1883 fund the direct and indirect operating expenses of the
1884 division’s electronic gaming machine regulation operations and
1885 to provide funding for relevant enforcement activities in
1886 accordance with authorized appropriations. Funds deposited into
1887 the Pari-mutuel Wagering Trust Fund pursuant to subsection (1)
1888 of section 7 of this act and subsection (3) of section 17 of
1889 this act shall be reserved in the trust fund for electronic
1890 gaming machine regulation and enforcement operations. On June
1891 30, any unappropriated funds in excess of those necessary for
1892 incurred obligations and subsequent year cash flow for
1893 electronic gaming machine regulation and enforcement operations
1894 shall be deposited with the Chief Financial Officer to the
1895 credit of the General Revenue Fund.
1896 Section 33. Subsection (6) of section 550.2415, Florida
1897 Statutes, is amended to read:
1898 550.2415 Racing of animals under certain conditions
1899 prohibited; penalties; exceptions.—
1900 (6)(a) It is the intent of the Legislature that animals
1901 that participate in races in this state on which pari-mutuel
1902 wagering is conducted and animals that are bred and trained in
1903 this state for racing be treated humanely, both on and off
1904 racetracks, throughout the lives of the animals.
1905 (b) The division shall, by rule, establish the procedures
1906 for euthanizing greyhounds. However, a greyhound may not be put
1907 to death by any means other than by lethal injection of the drug
1908 sodium pentobarbital. A greyhound may not be removed from this
1909 state for the purpose of being destroyed.
1910 (c) It is a violation of this chapter for an occupational
1911 licensee to train a greyhound using live or dead animals. A
1912 greyhound may not be taken from this state for the purpose of
1913 being trained through the use of live or dead animals.
1914 (d) Any act committed by any licensee which would
1915 constitute A conviction of cruelty to animals as defined in
1916 pursuant to s. 828.12 involving any a racing animal constitutes
1917 a violation of this chapter. Imposition of any penalty by the
1918 division for a violation of this chapter or any rule adopted by
1919 the division pursuant to this chapter does not prohibit a
1920 criminal prosecution for cruelty to animals.
1921 (e) The division may inspect any area at a pari-mutuel
1922 facility where racing animals are raced, trained, housed, or
1923 maintained, including any areas where food, medications, or
1924 other supplies are kept, to ensure the humane treatment of
1925 racing animals and compliance with this chapter and the rules of
1926 the division.
1927 Section 34. Subsection (5) is added to section 550.26165,
1928 Florida Statutes, is amended to read:
1929 550.26165 Breeders’ awards.—
1930 (5)(a) The awards programs in this chapter, which are
1931 intended to encourage thoroughbred breeding and training
1932 operations to locate in this state, must be responsive to
1933 rapidly changing incentive programs in other states. To attract
1934 such operations, it is appropriate to provide greater
1935 flexibility to thoroughbred industry participants in this state
1936 so that they may design competitive awards programs.
1937 (b) Notwithstanding any other provision of law to the
1938 contrary, the Florida Thoroughbred Breeders’ Association, as
1939 part of its annual plan, may:
1940 1. Pay breeders’ awards on horses finishing in first,
1941 second, or third place in thoroughbred horse races; pay
1942 breeders’ awards that are greater than 20 percent and less than
1943 15 percent of the announced gross purse; and vary the rates for
1944 breeders’ awards, based upon the place of finish, class of race,
1945 state or country in which the race took place, and the state in
1946 which the stallion siring the horse was standing when the horse
1947 was conceived;
1948 2. Pay stallion awards on horses finishing in first,
1949 second, or third place in thoroughbred horse races; pay stallion
1950 awards that are greater than 20 percent and less than 15 percent
1951 of the announced gross purse; reduce or eliminate stallion
1952 awards to enhance breeders’ awards or awards under subparagragh
1953 3.; and vary the rates for stallion awards, based upon the place
1954 of finish, class of race, and state or country in which the race
1955 took place; and
1956 3. Pay awards from the funds dedicated for breeders’ awards
1957 and stallion awards to owners of registered Florida-bred horses
1958 finishing in first, second, or third place in thoroughbred horse
1959 races in this state, without regard to any awards paid pursuant
1960 to s. 550.2625(6).
1961 (c) Breeders’ awards or stallion awards under this chapter
1962 may not be paid on thoroughbred horse races taking place in
1963 other states or countries unless agreed to in writing by all
1964 thoroughbred permitholders in this state, the Florida
1965 Thoroughbred Breeders’ Association, and the Florida Horsemen’s
1966 Benevolent and Protective Association, Inc.
1967 Section 35. Paragraph (e) is added to subsection (6) of
1968 section 550.2625, Florida Statutes, to read:
1969 550.2625 Horseracing; minimum purse requirement, Florida
1970 breeders’ and owners’ awards.—
1971 (6)
1972 (e) This subsection governs owners’ awards paid on
1973 thoroughbred races only in this state, unless a written
1974 agreement is filed with the division establishing the rate,
1975 procedures, and eligibility requirements for owners’ awards,
1976 including place of finish, class of race, maximum purse, and
1977 maximum award, and the agreement is entered into by the
1978 permitholder, the Florida Thoroughbred Breeders’ Association,
1979 and the association representing a majority of the racehorse
1980 owners and trainers at the permitholder’s location.
1981 Section 36. Section 550.334, Florida Statutes, is amended
1982 to read:
1983 550.334 Quarter horse racing; substitutions.—
1984 (1) Subject to all the applicable provisions of this
1985 chapter, any person who possesses the qualifications prescribed
1986 in this chapter may apply to the division for a permit to
1987 conduct quarter horse race meetings and racing under this
1988 chapter. The applicant must demonstrate that the location or
1989 locations where the permit will be used are available for such
1990 use and that she or he has the financial ability to satisfy the
1991 reasonably anticipated operational expenses of the first racing
1992 year following final issuance of the permit. If the racing
1993 facility is already built, the application must contain a
1994 statement, with reasonable supporting evidence, that the permit
1995 will be used for quarter horse racing within 1 year after the
1996 date on which it is granted; if the facility is not already
1997 built, the application must contain a statement, with reasonable
1998 supporting evidence, that substantial construction will be
1999 started within 1 year after the issuance of the permit. After
2000 receipt of an application, the division shall convene to
2001 consider and act upon permits applied for. The division shall
2002 disapprove an application if it fails to meet the requirements
2003 of this chapter. Upon each application filed and approved, a
2004 permit shall be issued setting forth the name of the applicant
2005 and a statement showing qualifications of the applicant to
2006 conduct racing under this chapter. If a favorable referendum on
2007 a pari-mutuel facility has not been held previously within the
2008 county, then, before a quarter horse permit may be issued by the
2009 division, a referendum ratified by a majority of the electors in
2010 the county is required on the question of allowing quarter horse
2011 races within that county.
2012 (2) After a quarter horse racing permit has been granted by
2013 the division, the department shall grant to the lawful holder of
2014 such permit, subject to the conditions of this section, a
2015 license to conduct quarter horse racing under this chapter; and
2016 the division shall fix annually the time when, place where, and
2017 number of days upon which racing may be conducted by such
2018 quarter horse racing permitholder. After the first license has
2019 been issued to the holder of a permit for quarter horse racing,
2020 all subsequent annual applications for a license by a
2021 permitholder must be accompanied by proof, in such form as the
2022 division requires, that the permitholder still possesses all the
2023 qualifications prescribed by this chapter. The division may
2024 revoke any permit or license issued under this section upon the
2025 willful violation by the licensee of any provision of this
2026 chapter or any rule adopted by the division under this chapter.
2027 The division shall revoke any quarter horse permit under which
2028 no live racing has ever been conducted before July 7, 1990, for
2029 failure to conduct a horse meet pursuant to the license issued
2030 where a full schedule of horseracing has not been conducted for
2031 a period of 18 months commencing on October 1, 1990, unless the
2032 permitholder has commenced construction on a facility at which a
2033 full schedule of live racing could be conducted as approved by
2034 the division. “Commenced construction” means initiation of and
2035 continuous activities beyond site preparation associated with
2036 erecting or modifying a horseracing facility, including
2037 procurement of a building permit applying the use of approved
2038 construction documents, proof of an executed owner/contractor
2039 agreement or an irrevocable or binding forced account, and
2040 actual undertaking of foundation forming with steel installation
2041 and concrete placing. The 18-month period shall be extended by
2042 the division, to the extent that the applicant demonstrates to
2043 the satisfaction of the division that good faith commencement of
2044 the construction of the facility is being delayed by litigation
2045 or by governmental action or inaction with respect to
2046 regulations or permitting precluding commencement of the
2047 construction of the facility.
2048 (1)(3) The operator of any licensed racetrack is authorized
2049 to lease such track to any quarter horse racing permitholder for
2050 the conduct of quarter horse racing under this chapter.
2051 (4) Section 550.054 is inapplicable to quarter horse racing
2052 as permitted under this section. All other provisions of this
2053 chapter apply to, govern, and control such racing, and the same
2054 must be conducted in compliance therewith.
2055 (2)(5) Quarter horses participating in such races must be
2056 duly registered by the American Quarter Horse Association, and
2057 before each race such horses must be examined and declared in
2058 fit condition by a qualified person designated by the division.
2059 (3)(6) Any quarter horse racing days permitted under this
2060 chapter are in addition to any other racing permitted under the
2061 license issued the track where such quarter horse racing is
2062 conducted.
2063 (4)(7)(a) Any quarter horse racing permitholder operating
2064 under a valid permit issued by the division is authorized to
2065 substitute races of other breeds of horses, except
2066 thoroughbreds, which are, respectively, registered with the
2067 American Paint Horse Association, Appaloosa Horse Club, Arabian
2068 Horse Registry of America, Palomino Horse Breeders of America,
2069 or United States Trotting Association, for no more than 50
2070 percent of the quarter horse races daily, and may substitute
2071 races of thoroughbreds registered with the Jockey Club for no
2072 more than 50 percent of the quarter horse races daily with the
2073 written consent of all greyhound, harness, and thoroughbred
2074 permitholders whose pari-mutuel facilities are located within 50
2075 air miles of such quarter horse racing permitholder’s pari
2076 mutuel facility.
2077 (b) Any permittee operating within an area of 50 air miles
2078 of a licensed thoroughbred track may not substitute thoroughbred
2079 races under this section while a thoroughbred horse race meet is
2080 in progress within that 50 miles. Any permittee operating within
2081 an area of 125 air miles of a licensed thoroughbred track may
2082 not substitute live thoroughbred races under this section while
2083 a thoroughbred permittee who pays taxes under s. 550.09515(2)(a)
2084 is conducting a thoroughbred meet within that 125 miles. These
2085 mileage restrictions do not apply to any permittee that holds a
2086 nonwagering permit issued pursuant to s. 550.505.
2087 (5)(8) A quarter horse permit issued pursuant to this
2088 section is not eligible for transfer or conversion to another
2089 type of pari-mutuel operation.
2090 (6)(9) Any nonprofit corporation, including, but not
2091 limited to, an agricultural cooperative marketing association,
2092 organized and incorporated under the laws of this state may
2093 apply for a quarter horse racing permit and operate racing meets
2094 under such permit, provided all pari-mutuel taxes and fees
2095 applicable to such racing are paid by the corporation. However,
2096 insofar as its pari-mutuel operations are concerned, the
2097 corporation shall be considered to be a corporation for profit
2098 and is subject to taxation on all property used and profits
2099 earned in connection with its pari-mutuel operations.
2100 (7)(10) Intertrack wagering shall not be authorized for any
2101 quarter horse permitholder without the written consent of all
2102 greyhound, harness, and thoroughbred permitholders whose pari
2103 mutuel facilities are located within 50 air miles of such
2104 quarter horse permitholder’s pari-mutuel facility.
2105 Section 37. Section 550.3355, Florida Statutes, is amended
2106 to read:
2107 550.3355 Harness track licenses for summer quarter horse
2108 racing.—Any harness track licensed to operate under the
2109 provisions of s. 550.375 may make application for, and shall be
2110 issued by the division, a license to operate not more than 50
2111 quarter horse racing days during the summer season, which shall
2112 extend from July 1 June 1 until October 1 September 1 of each
2113 year. However, this license to operate quarter horse racing for
2114 50 days is in addition to the racing days and dates provided in
2115 s. 550.375 for harness racing during the winter seasons; and, it
2116 does not affect the right of such licensee to operate harness
2117 racing at the track as provided in s. 550.375 during the winter
2118 season. All provisions of this chapter governing quarter horse
2119 racing not in conflict herewith apply to the operation of
2120 quarter horse meetings authorized hereunder, except that all
2121 quarter horse racing permitted hereunder shall be conducted at
2122 night.
2123 Section 38. Section 550.3605, Florida Statutes, is
2124 repealed.
2125 Section 39. Section 550.5251, Florida Statutes, is amended
2126 to read:
2127 550.5251 Florida thoroughbred racing; certain permits;
2128 operating days.—
2129 (1) Each thoroughbred permitholder under whose permit
2130 thoroughbred racing was conducted in this state at any time
2131 between January 1, 1987, and January 1, 1988, shall annually be
2132 entitled to apply for and annually receive thoroughbred racing
2133 days and dates as set forth in this section. As regards such
2134 permitholders, the annual thoroughbred racing season shall be
2135 from June 1 of any year through May 31 of the following year and
2136 shall be known as the “Florida Thoroughbred Racing Season.”
2137 (1)(2) Each thoroughbred permitholder referred to in
2138 subsection (1) shall annually, during the period commencing
2139 December 15 of each year and ending January 4 of the following
2140 year, file in writing with the division its application to
2141 conduct one or more thoroughbred racing meetings during the
2142 thoroughbred racing season commencing on the following June 1.
2143 Each application shall specify the number and dates of all
2144 performances that the permitholder intends to conduct during
2145 that thoroughbred racing season. On or before February 15 of
2146 each year, the division shall issue a license authorizing each
2147 permitholder to conduct performances on the dates specified in
2148 its application. By February 28 Up to March 31 of each year,
2149 each permitholder may request and shall be granted changes in
2150 its authorized performances; but thereafter, as a condition
2151 precedent to the validity of its license and its right to retain
2152 its permit, each permitholder must operate the full number of
2153 days authorized on each of the dates set forth in its license.
2154 (3) Each thoroughbred permit referred to in subsection (1),
2155 including, but not limited to, any permit originally issued as a
2156 summer thoroughbred horse racing permit, is hereby validated and
2157 shall continue in full force and effect.
2158 (2)(4) A thoroughbred racing permitholder may not begin any
2159 race later than 7 p.m. Any thoroughbred permitholder in a county
2160 in which the authority for cardrooms has been approved by the
2161 board of county commissioners may operate a cardroom and, when
2162 conducting live races during its current race meet, may receive
2163 and rebroadcast out-of-state races after the hour of 7 p.m. on
2164 any day during which the permitholder conducts live races.
2165 (3)(5)(a) Each licensed thoroughbred permitholder in this
2166 state must run an average of one race per racing day in which
2167 horses bred in this state and duly registered with the Florida
2168 Thoroughbred Breeders’ Association have preference as entries
2169 over non-Florida-bred horses, unless otherwise agreed to in
2170 writing by the permitholder, the Florida Thoroughbred Breeders’
2171 Association, and the association representing a majority of the
2172 thoroughbred racehorse owners and trainers at that location. All
2173 licensed thoroughbred racetracks shall write the conditions for
2174 such races in which Florida-bred horses are preferred so as to
2175 assure that all Florida-bred horses available for racing at such
2176 tracks are given full opportunity to run in the class of races
2177 for which they are qualified. The opportunity of running must be
2178 afforded to each class of horses in the proportion that the
2179 number of horses in this class bears to the total number of
2180 Florida-bred horses available. A track is not required to write
2181 conditions for a race to accommodate a class of horses for which
2182 a race would otherwise not be run at the track during its meet
2183 meeting.
2184 (b) Each licensed thoroughbred permitholder in this state
2185 may run one additional race per racing day composed exclusively
2186 of Arabian horses registered with the Arabian Horse Registry of
2187 America. Any licensed thoroughbred permitholder that elects to
2188 run one additional race per racing day composed exclusively of
2189 Arabian horses registered with the Arabian Horse Registry of
2190 America is not required to provide stables for the Arabian
2191 horses racing under this paragraph.
2192 (c) Each licensed thoroughbred permitholder in this state
2193 may run up to three additional races per racing day composed
2194 exclusively of quarter horses registered with the American
2195 Quarter Horse Association.
2196 (6) Notwithstanding the provisions of subsection (2), a
2197 thoroughbred permitholder who fails to operate all performances
2198 on its 2001-2002 license does not lose its right to retain its
2199 permit. Such thoroughbred permitholder is eligible for issuance
2200 of an annual license pursuant to s. 550.0115 for subsequent
2201 thoroughbred racing seasons. The division shall take no
2202 disciplinary action against such thoroughbred permitholder for
2203 failure to operate all licensed performances for the 2001-2002
2204 license pursuant to this section or s. 550.01215. This section
2205 may not be interpreted to prohibit the division from taking
2206 disciplinary action against a thoroughbred permitholder for
2207 failure to pay taxes on performances operated pursuant to its
2208 2001-2002 license. This subsection expires July 1, 2003.
2209 (7) A thoroughbred permitholder shall file an amendment
2210 with the division no later than July 1, 2002, that indicates
2211 that it will not be able to operate the performances scheduled
2212 on its 2002-2003 license without imposition of any penalty for
2213 failure to operate all licensed performances provided in this
2214 chapter. This subsection expires July 1, 2003.
2215 Section 40. Section 550.810, Florida Statutes, is created
2216 to read:
2217 550.810 Historical racing.—
2218 (1) Subject to the requirements of this section and
2219 compliance with the rules adopted by the division, a licensed
2220 pari-mutuel facility may operate a historical racing system if:
2221 (a) No identifying information about any race or the
2222 competing horses or dogs in that race is revealed to a patron
2223 until after the patron’s wagers is irrevocably placed;
2224 (b) The results of a patron’s wager are shown to the patron
2225 using video or mechanical displays, or both, and the patron has
2226 the opportunity to view all or any portion of the race;
2227 (c) The historical racing takes place under a licensed
2228 pari-mutuel permit that has run a full schedules of live racing
2229 3 years prior to the date of application for licensure for
2230 historic racing, and the pari-mutuel permitholder also holds a
2231 cardroom license; and
2232 (d) The licensed pari-mutuel permit holder has paid the fee
2233 in s. 550.0951(5)(d).
2234 (2) The following number of historical racing wagering
2235 terminals may be located in the following facilities:
2236 (a) A licensed greyhound facility may have 500 historical
2237 racing terminals.
2238 (b) A licensed thoroughbred facility may have 500
2239 historical racing terminals.
2240 (c) A licensed harness track facility may have 500
2241 historical racing terminals.
2242 (d) A licensed quarter horse facility may have 500
2243 historical racing terminals.
2244 (3) The moneys wagered on races via the historical racing
2245 system shall be separated from the moneys wagered on live races
2246 conducted at, and on other races simulcast to, the licensee’s
2247 facility.
2248 (4) The division shall adopt rules necessary to implement,
2249 administer, and regulate the operation of historical racing
2250 systems in this state. The rules must include:
2251 (a) Procedures for regulating, managing, and auditing the
2252 operation, financial data, and program information relating to
2253 historical racing systems that enable the division to audit the
2254 operation, financial data, and program information of pari
2255 mutuel facility authorized to operate a historical racing
2256 system.
2257 (b) Technical requirements to operate a historical racing
2258 system.
2259 (c) Procedures to require licensees to maintain specified
2260 records and submit any data, information, record, or report,
2261 including financial and income records, required by this act or
2262 rules of the division.
2263 (d) Procedures relating to historical racing system
2264 revenues, including verifying and accounting for such revenues,
2265 auditing, and collecting taxes and fees.
2266 (e) Minimum standards for security of the facilities,
2267 including floor plans, security cameras, and other security
2268 equipment.
2269 (f) Procedures to ensure that a historical racing machine
2270 does not enter the state or be offered for play until it has
2271 been tested and certified by a licensed testing laboratory for
2272 play in the state. The procedures shall address measures to
2273 scientifically test and technically evaluate electronic gaming
2274 machines for compliance with laws and rules regulating
2275 historical racing machines. The division may contract with an
2276 independent testing laboratory to conduct any necessary testing.
2277 The independent testing laboratory must have a national
2278 reputation indicating that it is demonstrably competent and
2279 qualified to scientifically test and evaluate that the
2280 historical racing systems perform the functions required by laws
2281 and rules regulating historical racing machines. An independent
2282 testing laboratory may not be owned or controlled by a licensee.
2283 The selection of an independent laboratory for any purpose
2284 related to the conduct of historical racing systems by a
2285 licensee shall be made from a list of laboratories approved by
2286 the division. The division shall adopt rules regarding the
2287 testing, certification, control, and approval of historical
2288 racing systems.
2289 (5) Notwithstanding any other provision of the law, the
2290 proceeds of pari-mutuel tickets purchased for historical racing
2291 that are not redeemed within 1 year after purchase shall be
2292 divided as follows:
2293 (a) Fifty percent shall be retained by the permitholder;
2294 and
2295 (b) Fifty percent shall be paid into the permitholder’s
2296 purse account.
2297 Section 41. Paragraph (j) of subsection (4) of section
2298 551.104, Florida Statutes, is amended to read:
2299 551.104 License to conduct slot machine gaming.—
2300 (4) As a condition of licensure and to maintain continued
2301 authority for the conduct of slot machine gaming, the slot
2302 machine licensee shall:
2303 (j) Ensure that the payout percentage of a slot machine
2304 gaming facility is at least no less than 85 percent.
2305 Section 42. Paragraph (a) of subsection (1), paragraph (a)
2306 of subsection (2), and subsection (3) of section 551.106,
2307 Florida Statutes, are amended to read:
2308 551.106 License fee; tax rate; penalties.—
2309 (1) LICENSE FEE.—
2310 (a) Upon submission of the initial application for a slot
2311 machine license and annually thereafter, on the anniversary date
2312 of the issuance of the initial license, the licensee must pay to
2313 the division a nonrefundable license fee of $2 million $3
2314 million for the succeeding 12 months of licensure. The license
2315 fee shall be deposited into the Pari-mutuel Wagering Trust Fund
2316 of the Department of Business and Professional Regulation to be
2317 used by the division and the Department of Law Enforcement for
2318 investigations, regulation of slot machine gaming, and
2319 enforcement of slot machine gaming provisions under this
2320 chapter. These payments shall be accounted for separately from
2321 taxes or fees paid pursuant to the provisions of chapter 550.
2322 (2) TAX ON SLOT MACHINE REVENUES.—
2323 (a) The tax rate on slot machine revenues at each facility
2324 shall be 35 percent 50 percent.
2325 (3) PAYMENT AND DISPOSITION OF TAXES.—Payment for the tax
2326 on slot machine revenues imposed by this section shall be paid
2327 to the division. The division shall deposit these sums with the
2328 Chief Financial Officer, to the credit of the Pari-mutuel
2329 Wagering Trust Fund. The slot machine licensee shall remit to
2330 the division payment for the tax on slot machine revenues. Such
2331 payments shall be remitted by 3 p.m. on the 5th day of each
2332 calendar month Wednesday of each week for taxes imposed and
2333 collected for the preceding calendar month week ending on
2334 Sunday. The slot machine licensee shall file a report under oath
2335 by the 5th day of each calendar month for all taxes remitted
2336 during the preceding calendar month. Such payments shall be
2337 accompanied by a report under oath showing all slot machine
2338 gaming activities for the preceding calendar month and such
2339 other information as may be prescribed by the division.
2340 Section 43. Subsection (1) of section 551.113, Florida
2341 Statutes, is amended to read:
2342 551.113 Persons prohibited from playing slot machines.—
2343 (1) A person who has not attained 18 21 years of age may
2344 not play or operate a slot machine or have access to the
2345 designated slot machine gaming area of a facility of a slot
2346 machine licensee.
2347 Section 44. Subsection (5) of section 551.121, Florida
2348 Statutes, is amended to read:
2349 551.121 Prohibited activities and devices; exceptions.—
2350 (5) A slot machine, or the computer operating system
2351 linking the slot machine, may be linked by any means to any
2352 other slot machine or computer operating system within the
2353 facility of a slot machine licensee. A progressive system may
2354 not be used in conjunction with slot machines between licensed
2355 facilities.
2356 Section 45. Paragraph (a) of subsection (1) and paragraph
2357 (a) of subsection (2) of section 772.102, Florida Statutes, are
2358 amended to read:
2359 772.102 Definitions.—As used in this chapter, the term:
2360 (1) “Criminal activity” means to commit, to attempt to
2361 commit, to conspire to commit, or to solicit, coerce, or
2362 intimidate another person to commit:
2363 (a) Any crime that is chargeable by indictment or
2364 information under the following provisions:
2365 1. Section 210.18, relating to evasion of payment of
2366 cigarette taxes.
2367 2. Section 414.39, relating to public assistance fraud.
2368 3. Section 440.105 or s. 440.106, relating to workers’
2369 compensation.
2370 4. Part IV of chapter 501, relating to telemarketing.
2371 5. Chapter 517, relating to securities transactions.
2372 6. Section 550.235 or, s. 550.3551, or s. 550.3605,
2373 relating to dogracing and horseracing.
2374 7. Chapter 550, relating to jai alai frontons.
2375 8. Chapter 552, relating to the manufacture, distribution,
2376 and use of explosives.
2377 9. Chapter 562, relating to beverage law enforcement.
2378 10. Section 624.401, relating to transacting insurance
2379 without a certificate of authority, s. 624.437(4)(c)1., relating
2380 to operating an unauthorized multiple-employer welfare
2381 arrangement, or s. 626.902(1)(b), relating to representing or
2382 aiding an unauthorized insurer.
2383 11. Chapter 687, relating to interest and usurious
2384 practices.
2385 12. Section 721.08, s. 721.09, or s. 721.13, relating to
2386 real estate timeshare plans.
2387 13. Chapter 782, relating to homicide.
2388 14. Chapter 784, relating to assault and battery.
2389 15. Chapter 787, relating to kidnapping or human
2390 trafficking.
2391 16. Chapter 790, relating to weapons and firearms.
2392 17. Section 796.03, s. 796.04, s. 796.045, s. 796.05, or s.
2393 796.07, relating to prostitution.
2394 18. Chapter 806, relating to arson.
2395 19. Section 810.02(2)(c), relating to specified burglary of
2396 a dwelling or structure.
2397 20. Chapter 812, relating to theft, robbery, and related
2398 crimes.
2399 21. Chapter 815, relating to computer-related crimes.
2400 22. Chapter 817, relating to fraudulent practices, false
2401 pretenses, fraud generally, and credit card crimes.
2402 23. Section 827.071, relating to commercial sexual
2403 exploitation of children.
2404 24. Chapter 831, relating to forgery and counterfeiting.
2405 25. Chapter 832, relating to issuance of worthless checks
2406 and drafts.
2407 26. Section 836.05, relating to extortion.
2408 27. Chapter 837, relating to perjury.
2409 28. Chapter 838, relating to bribery and misuse of public
2410 office.
2411 29. Chapter 843, relating to obstruction of justice.
2412 30. Section 847.011, s. 847.012, s. 847.013, s. 847.06, or
2413 s. 847.07, relating to obscene literature and profanity.
2414 31. Section 849.09, s. 849.14, s. 849.15, s. 849.23, or s.
2415 849.25, relating to gambling.
2416 32. Chapter 893, relating to drug abuse prevention and
2417 control.
2418 33. Section 914.22 or s. 914.23, relating to witnesses,
2419 victims, or informants.
2420 34. Section 918.12 or s. 918.13, relating to tampering with
2421 jurors and evidence.
2422 (2) “Unlawful debt” means any money or other thing of value
2423 constituting principal or interest of a debt that is legally
2424 unenforceable in this state in whole or in part because the debt
2425 was incurred or contracted:
2426 (a) In violation of any one of the following provisions of
2427 law:
2428 1. Section 550.235 or, s. 550.3551, or s. 550.3605,
2429 relating to dogracing and horseracing.
2430 2. Chapter 550, relating to jai alai frontons.
2431 3. Section 687.071, relating to criminal usury, loan
2432 sharking, and shylocking.
2433 4. Section 849.09, s. 849.14, s. 849.15, s. 849.23, or s.
2434 849.25, relating to gambling.
2435 Section 46. Paragraphs (a) and (b) of subsection (5),
2436 subsections (6) and (7), paragraphs (b) and (c) of subsection
2437 (8), and paragraphs (a) and (b) of subsection (12) of section
2438 849.086, Florida Statutes, are amended to read:
2439 849.086 Cardrooms authorized.—
2440 (5) LICENSE REQUIRED; APPLICATION; FEES.—No person may
2441 operate a cardroom in this state unless such person holds a
2442 valid cardroom license issued pursuant to this section.
2443 (a) Only those persons holding a valid cardroom license
2444 issued by the division may operate a cardroom. A cardroom
2445 license may only be issued to a licensed pari-mutuel
2446 permitholder and an authorized cardroom may only be operated at
2447 the same facility at which the permitholder is authorized under
2448 its valid pari-mutuel wagering permit to conduct pari-mutuel
2449 wagering activities. An initial cardroom license only shall be
2450 issued to a pari-mutuel permitholder that has run a full
2451 schedule of live races as defined in s. 550.002(11) for the
2452 previous 2 fiscal years prior to application for a license and
2453 only if the permitholder is licensed to conduct a full schedule
2454 of live races or games during the state fiscal year in which the
2455 initial cardroom license is issued.
2456 (b) After the initial cardroom license is granted, the
2457 application for the annual license renewal shall be made in
2458 conjunction with the applicant’s annual application for its
2459 pari-mutuel license. If a permitholder has operated a cardroom
2460 during any of the 3 previous fiscal years and fails to include a
2461 renewal request for the operation of the cardroom in its annual
2462 application for license renewal, the permitholder may amend its
2463 annual application to include operation of the cardroom. In
2464 order for a cardroom license to be renewed the applicant must
2465 have requested, as part of its pari-mutuel annual license
2466 application, to conduct at least 90 percent of the total number
2467 of live performances conducted by such permitholder during
2468 either the state fiscal year in which its initial cardroom
2469 license was issued or the state fiscal year immediately prior
2470 thereto if the permitholder ran at least a full schedule of live
2471 races or games in the prior year. If the application is for a
2472 harness permitholder cardroom, the applicant must have requested
2473 authorization to conduct a minimum of 140 live performances
2474 during the state fiscal year immediately prior thereto. If more
2475 than one permitholder is operating at a facility, each
2476 permitholder must have applied for a license to conduct a full
2477 schedule of live racing.
2478 (6) BUSINESS AND EMPLOYEE OCCUPATIONAL LICENSE REQUIRED;
2479 APPLICATION; FEES.—
2480 (a) A person employed or otherwise working in a cardroom as
2481 a cardroom manager, floor supervisor, pit boss, dealer, or any
2482 other activity related to cardroom operations while the facility
2483 is conducting card playing or games of dominoes must hold a
2484 valid cardroom employee occupational license issued by the
2485 division. Food service, maintenance, and security employees with
2486 a current pari-mutuel occupational license and a current
2487 background check will not be required to have a cardroom
2488 employee occupational license.
2489 (b) Any cardroom management company or cardroom distributor
2490 associated with cardroom operations must hold a valid cardroom
2491 business occupational license issued by the division.
2492 (c) No licensed cardroom operator may employ or allow to
2493 work in a cardroom any person unless such person holds a valid
2494 occupational license. No licensed cardroom operator may
2495 contract, or otherwise do business with, a business required to
2496 hold a valid cardroom business occupational license, unless the
2497 business holds such a valid license.
2498 (d) The division shall establish, by rule, a schedule for
2499 the annual renewal of cardroom occupational licenses. Cardroom
2500 occupational licenses are not transferable.
2501 (e) Persons seeking cardroom occupational licenses, or
2502 renewal thereof, shall make application on forms prescribed by
2503 the division. Applications for cardroom occupational licenses
2504 shall contain all of the information the division, by rule, may
2505 determine is required to ensure eligibility.
2506 (f) The division shall promulgate rules regarding cardroom
2507 occupational licenses. The provisions specified in s.
2508 550.105(4), (5), (6), (7), (8), and (10) relating to licensure
2509 shall be applicable to cardroom occupational licenses.
2510 (g) The division may deny, declare ineligible, or revoke
2511 any cardroom occupational license if the applicant or holder
2512 thereof has been found guilty or had adjudication withheld in
2513 this state or any other state, or under the laws of the United
2514 States of a felony or misdemeanor involving forgery, larceny,
2515 extortion, conspiracy to defraud, or filing false reports to a
2516 government agency, racing or gaming commission or authority.
2517 (h) Fingerprints for all cardroom occupational license
2518 applications shall be taken in a manner approved by the division
2519 and then shall be submitted to the Florida Department of Law
2520 Enforcement and the Federal Bureau of Investigation for a
2521 criminal records check upon initial application and every 5
2522 years thereafter. The division may by rule require an annual
2523 record check of all renewal applications for a cardroom
2524 occupational license. The cost of processing fingerprints and
2525 conducting a record check shall be borne by the applicant.
2526 (i) The cardroom employee occupational license fee shall
2527 not exceed be $50 for any 12-month period. The cardroom business
2528 occupational license fee shall not exceed be $250 for any 12
2529 month period.
2530 (7) CONDITIONS FOR OPERATING A CARDROOM.—
2531 (a) A cardroom may be operated only at the location
2532 specified on the cardroom license issued by the division, and
2533 such location may only be the location at which the pari-mutuel
2534 permitholder is authorized to conduct pari-mutuel wagering
2535 activities pursuant to such permitholder’s valid pari-mutuel
2536 permit or as otherwise authorized by law. Cardroom operations
2537 may not be allowed beyond the hours provided in paragraph (b)
2538 regardless of the number of cardroom licenses issued for
2539 permitholders operating at the pari-mutuel facility.
2540 (b) Any cardroom operator horserace, greyhound race, or jai
2541 alai permitholder licensed under this section may operate a
2542 cardroom at the pari-mutuel facility daily throughout the year,
2543 on any day for a cumulative amount of 12 hours if the
2544 permitholder meets the requirements under paragraph (5)(b). The
2545 cardroom may be open a cumulative amount of 18 hours per day on
2546 Monday through Friday and 24 hours per day on Saturday and
2547 Sunday and on the holidays specified in s. 110.117(1).
2548 (c) A cardroom operator must at all times employ and
2549 provide a nonplaying dealer for each table on which authorized
2550 card games which traditionally use a dealer are conducted at the
2551 cardroom. Such dealers may not have a participatory interest in
2552 any game other than the dealing of cards and may not have an
2553 interest in the outcome of the game. The providing of such
2554 dealers by a licensee does not constitute the conducting of a
2555 banking game by the cardroom operator.
2556 (d) A cardroom operator may award giveaways, jackpots, and
2557 prizes to a player who holds certain combinations of cards
2558 specified by the cardroom operator.
2559 (e) Each cardroom operator shall conspicuously post upon
2560 the premises of the cardroom a notice which contains a copy of
2561 the cardroom license; a list of authorized games offered by the
2562 cardroom; the wagering limits imposed by the house, if any; any
2563 additional house rules regarding operation of the cardroom or
2564 the playing of any game; and all costs to players to
2565 participate, including any rake by the house. In addition, each
2566 cardroom operator shall post at each table a notice of the
2567 minimum and maximum bets authorized at such table and the fee
2568 for participation in the game conducted.
2569 (f) The cardroom facility is subject to inspection by the
2570 division or any law enforcement agency during the licensee’s
2571 regular business hours. The inspection must specifically include
2572 the permitholder internal control procedures approved by the
2573 division.
2574 (g) A cardroom operator may refuse entry to or refuse to
2575 allow any person who is objectionable, undesirable, or
2576 disruptive to play, but such refusal may not be on the basis of
2577 race, creed, color, religion, gender, national origin, marital
2578 status, physical handicap, or age, except as provided in this
2579 section.
2580 (8) METHOD OF WAGERS; LIMITATION.—
2581 (b) The cardroom operator may limit the amount wagered in
2582 any game or series of games, but the maximum bet may not exceed
2583 $5 in value. There may not be more than three raises in any
2584 round of betting. The fee charged by the cardroom for
2585 participation in the game shall not be included in the
2586 calculation of the limitation on the bet amount provided in this
2587 paragraph. However, A cardroom operator may conduct games of
2588 Texas Hold-em without a betting limit if the required player
2589 buy-in is no more than $100.
2590 (c) A tournament shall consist of a series of games. The
2591 entry fee for a tournament may be set by the cardroom operator,
2592 including any re-buys, may not exceed the maximum amount that
2593 could be wagered by a participant in 10 like-kind, nontournament
2594 games under paragraph (b). Tournaments may be played only with
2595 tournament chips that are provided to all participants in
2596 exchange for an entry fee and any subsequent re-buys. All
2597 players must receive an equal number of tournament chips for
2598 their entry fee. Tournament chips have no cash value and
2599 represent tournament points only. There is no limitation on the
2600 number of tournament chips that may be used for a bet except as
2601 otherwise determined by the cardroom operator. Tournament chips
2602 may never be redeemed for cash or for any other thing of value.
2603 The distribution of prizes and cash awards must be determined by
2604 the cardroom operator before entry fees are accepted. For
2605 purposes of tournament play only, the term “gross receipts”
2606 means the total amount received by the cardroom operator for all
2607 entry fees, player re-buys, and fees for participating in the
2608 tournament less the total amount paid to the winners or others
2609 as prizes.
2610 (12) PROHIBITED ACTIVITIES.—
2611 (a)1. A No person licensed to operate a cardroom may not
2612 conduct any banking game or any game not specifically authorized
2613 by this section except as provided in subparagraph (b)2.
2614 (b) A No person under 18 years of age may not be permitted
2615 to hold a cardroom or employee license, or engage in any game
2616 conducted therein.
2617 2. Cardroom licensees located in Miami-Dade County and
2618 Broward County who are slot machine licensees pursuant to
2619 chapter 551 and have conducted a full schedule of live racing
2620 pursuant to s. 550.002(11) for the prior 2 fiscal years may
2621 conduct the game of blackjack if the Governor and the Seminole
2622 Tribe of Florida enter into a signed compact that permits the
2623 Seminole Tribe of Florida the ability to play roulette or
2624 roulette-style games or craps or craps-style games, and only if
2625 the compact is approved or deemed approved by the Department of
2626 the Interior and properly noticed in the Federal Register.
2627 Section 47. Subsection (2) of section 849.15, Florida
2628 Statutes, is amended to read:
2629 849.15 Manufacture, sale, possession, etc., of coin
2630 operated devices prohibited.—
2631 (2) Pursuant to section 2 of that chapter of the Congress
2632 of the United States entitled “An act to prohibit transportation
2633 of gaming devices in interstate and foreign commerce,” approved
2634 January 2, 1951, being ch. 1194, 64 Stat. 1134, and also
2635 designated as 15 U.S.C. ss. 1171-1177, the State of Florida,
2636 acting by and through the duly elected and qualified members of
2637 its Legislature, does hereby in this section, and in accordance
2638 with and in compliance with the provisions of section 2 of such
2639 chapter of Congress, declare and proclaim that any county of the
2640 State of Florida within which slot machine gaming is authorized
2641 pursuant to chapter 551 or electronic gaming or historical
2642 racing is authorized at eligible pari-mutuel facilities is
2643 exempt from the provisions of section 2 of that chapter of the
2644 Congress of the United States entitled “An act to prohibit
2645 transportation of gaming devices in interstate and foreign
2646 commerce,” designated as 15 U.S.C. ss. 1171-1177, approved
2647 January 2, 1951. All shipments of gaming devices, including slot
2648 machines, electronic gaming machines, and historical racing
2649 systems, into any county of this state within which slot machine
2650 gaming is authorized pursuant to chapter 551 or electronic
2651 gaming or historical racing is authorized at eligible pari
2652 mutuel facilities and the registering, recording, and labeling
2653 of which have been duly performed by the manufacturer or
2654 distributor thereof in accordance with sections 3 and 4 of that
2655 chapter of the Congress of the United States entitled “An act to
2656 prohibit transportation of gaming devices in interstate and
2657 foreign commerce,” approved January 2, 1951, being ch. 1194, 64
2658 Stat. 1134, and also designated as 15 U.S.C. ss. 1171-1177,
2659 shall be deemed legal shipments thereof into this state provided
2660 the destination of such shipments is an eligible facility as
2661 defined in s. 551.102 or the facility of a slot machine
2662 manufacturer or slot machine distributor as provided in s.
2663 551.109(2), a certified educational facility, or the facility of
2664 an electronic gaming machine or hitorical racing system
2665 manufacturer or electronic gaming machine or historical racing
2666 system distributor authorized to possess electronic gaming
2667 machines as provided in the act authorizing electronic gaming
2668 machines or historical racing systems at eligible pari-mutuel
2669 facilities s. 551.109(2)(a).
2670 Section 48. Subsection (3) is added to section 849.161,
2671 Florida Statutes, to read:
2672 849.161 Amusement games or machines; when chapter
2673 inapplicable.—
2674 (3) This chapter does not apply to licensed cardroom
2675 operators having historical racing systems pursuant to chapter
2676 550 which operate by means of the insertion of coin, currency,
2677 or voucher and which by application of an element of skill may
2678 entitle the person playing or operating the game or machine to
2679 receive payouts from one or more pari-mutuel pools.
2680 Section 49. Subsections (1) and (2) of section 895.02,
2681 Florida Statutes, are amended to read:
2682 895.02 Definitions.—As used in ss. 895.01-895.08, the term:
2683 (1) “Racketeering activity” means to commit, to attempt to
2684 commit, to conspire to commit, or to solicit, coerce, or
2685 intimidate another person to commit:
2686 (a) Any crime that is chargeable by petition, indictment,
2687 or information under the following provisions of the Florida
2688 Statutes:
2689 1. Section 210.18, relating to evasion of payment of
2690 cigarette taxes.
2691 2. Section 316.1935, relating to fleeing or attempting to
2692 elude a law enforcement officer and aggravated fleeing or
2693 eluding.
2694 3. Section 403.727(3)(b), relating to environmental
2695 control.
2696 4. Section 409.920 or s. 409.9201, relating to Medicaid
2697 fraud.
2698 5. Section 414.39, relating to public assistance fraud.
2699 6. Section 440.105 or s. 440.106, relating to workers’
2700 compensation.
2701 7. Section 443.071(4), relating to creation of a fictitious
2702 employer scheme to commit unemployment compensation fraud.
2703 8. Section 465.0161, relating to distribution of medicinal
2704 drugs without a permit as an Internet pharmacy.
2705 9. Section 499.0051, relating to crimes involving
2706 contraband and adulterated drugs.
2707 10. Part IV of chapter 501, relating to telemarketing.
2708 11. Chapter 517, relating to sale of securities and
2709 investor protection.
2710 12. Section 550.235 or, s. 550.3551, or s. 550.3605,
2711 relating to dogracing and horseracing.
2712 13. Chapter 550, relating to jai alai frontons.
2713 14. Section 551.109, relating to slot machine gaming.
2714 15. Chapter 552, relating to the manufacture, distribution,
2715 and use of explosives.
2716 16. Chapter 560, relating to money transmitters, if the
2717 violation is punishable as a felony.
2718 17. Chapter 562, relating to beverage law enforcement.
2719 18. Section 624.401, relating to transacting insurance
2720 without a certificate of authority, s. 624.437(4)(c)1., relating
2721 to operating an unauthorized multiple-employer welfare
2722 arrangement, or s. 626.902(1)(b), relating to representing or
2723 aiding an unauthorized insurer.
2724 19. Section 655.50, relating to reports of currency
2725 transactions, when such violation is punishable as a felony.
2726 20. Chapter 687, relating to interest and usurious
2727 practices.
2728 21. Section 721.08, s. 721.09, or s. 721.13, relating to
2729 real estate timeshare plans.
2730 22. Section 775.13(5)(b), relating to registration of
2731 persons found to have committed any offense for the purpose of
2732 benefiting, promoting, or furthering the interests of a criminal
2733 gang.
2734 23. Section 777.03, relating to commission of crimes by
2735 accessories after the fact.
2736 24. Chapter 782, relating to homicide.
2737 25. Chapter 784, relating to assault and battery.
2738 26. Chapter 787, relating to kidnapping or human
2739 trafficking.
2740 27. Chapter 790, relating to weapons and firearms.
2741 28. Chapter 794, relating to sexual battery, but only if
2742 such crime was committed with the intent to benefit, promote, or
2743 further the interests of a criminal gang, or for the purpose of
2744 increasing a criminal gang member’s own standing or position
2745 within a criminal gang.
2746 29. Section 796.03, s. 796.035, s. 796.04, s. 796.045, s.
2747 796.05, or s. 796.07, relating to prostitution and sex
2748 trafficking.
2749 30. Chapter 806, relating to arson and criminal mischief.
2750 31. Chapter 810, relating to burglary and trespass.
2751 32. Chapter 812, relating to theft, robbery, and related
2752 crimes.
2753 33. Chapter 815, relating to computer-related crimes.
2754 34. Chapter 817, relating to fraudulent practices, false
2755 pretenses, fraud generally, and credit card crimes.
2756 35. Chapter 825, relating to abuse, neglect, or
2757 exploitation of an elderly person or disabled adult.
2758 36. Section 827.071, relating to commercial sexual
2759 exploitation of children.
2760 37. Chapter 831, relating to forgery and counterfeiting.
2761 38. Chapter 832, relating to issuance of worthless checks
2762 and drafts.
2763 39. Section 836.05, relating to extortion.
2764 40. Chapter 837, relating to perjury.
2765 41. Chapter 838, relating to bribery and misuse of public
2766 office.
2767 42. Chapter 843, relating to obstruction of justice.
2768 43. Section 847.011, s. 847.012, s. 847.013, s. 847.06, or
2769 s. 847.07, relating to obscene literature and profanity.
2770 44. Section 849.09, s. 849.14, s. 849.15, s. 849.23, or s.
2771 849.25, relating to gambling.
2772 45. Chapter 874, relating to criminal gangs.
2773 46. Chapter 893, relating to drug abuse prevention and
2774 control.
2775 47. Chapter 896, relating to offenses related to financial
2776 transactions.
2777 48. Sections 914.22 and 914.23, relating to tampering with
2778 or harassing a witness, victim, or informant, and retaliation
2779 against a witness, victim, or informant.
2780 49. Sections 918.12 and 918.13, relating to tampering with
2781 jurors and evidence.
2782 50. Provisions of law relating to electronic gaming and
2783 electronic gaming machines or historical racing systems at
2784 eligible pari-mutuel facilities.
2785 (b) Any conduct defined as “racketeering activity” under 18
2786 U.S.C. s. 1961(1).
2787 (2) “Unlawful debt” means any money or other thing of value
2788 constituting principal or interest of a debt that is legally
2789 unenforceable in this state in whole or in part because the debt
2790 was incurred or contracted:
2791 (a) In violation of any one of the following provisions of
2792 law:
2793 1. Section 550.235 or, s. 550.3551, or s. 550.3605,
2794 relating to dogracing and horseracing.
2795 2. Chapter 550, relating to jai alai frontons.
2796 3. Section 551.109, relating to slot machine gaming.
2797 4. Chapter 687, relating to interest and usury.
2798 5. Section 849.09, s. 849.14, s. 849.15, s. 849.23, or s.
2799 849.25, relating to gambling.
2800 6. Provisions of law relating to electronic gaming and
2801 electronic gaming machines or historical racing systems at
2802 eligible pari-mutuel facilities.
2803 (b) In gambling activity in violation of federal law or in
2804 the business of lending money at a rate usurious under state or
2805 federal law.
2806 Section 50. (1)(a) For the 2009-2010 fiscal year, 110 full
2807 time equivalent positions and 3,551,808 in associated salary
2808 rate are authorized, and the sums of $9,281,870 in recurring
2809 funds and $4,514,405 in nonrecurring funds are appropriated from
2810 the Pari-mutuel Wagering Trust Fund of the Department of
2811 Business and Professional Regulation for the purpose of carrying
2812 out all regulatory activities provided in this act. The
2813 Executive Office of the Governor shall place these positions,
2814 associated rate, and funds in reserve until the Executive Office
2815 of the Governor has approved an expenditure plan and a budget
2816 amendment submitted by the Department of Business and
2817 Professional Regulation recommending the transfer of such funds
2818 to traditional appropriation categories. Any action proposed
2819 pursuant to this paragraph is subject to the procedures set
2820 forth in s. 216.177, Florida Statutes.
2821 (b) For the 2009-2010 fiscal year, the sums of $4,849,500
2822 in recurring funds and $1,176,308 in nonrecurring funds are
2823 appropriated from the Pari-mutuel Wagering Trust Fund of the
2824 Department of Business and Professional Regulation for transfer
2825 to the Operating Trust Fund of the Department of Law Enforcement
2826 for the purpose of investigations, intelligence gathering,
2827 background investigations, and any other responsibilities as
2828 provided in this act.
2829 (2) For the 2009-2010 fiscal year, 61 full-time equivalent
2830 positions and 2,604,216 in associated salary rate are
2831 authorized, and the sums of $4,849,500 in recurring funds and
2832 $1,176,308 in nonrecurring funds are appropriated from the
2833 Operating Trust Fund of the Department of Law Enforcement for
2834 the purpose of investigations, intelligence gathering,
2835 background investigations, and any other responsibilities as
2836 provided by this act. The Executive Office of the Governor shall
2837 place these positions, associated rate, and funds in reserve
2838 until the Executive Office of the Governor has approved an
2839 expenditure plan and a budget amendment submitted by the
2840 Department of Law Enforcement recommending the transfer of such
2841 funds to traditional appropriation categories. Any action
2842 proposed pursuant to this subsection is subject to the
2843 procedures set forth in s. 216.177, Florida Statutes.
2844 (3) For the 2009-2010 fiscal year, the sum of $1 million in
2845 recurring funds is appropriated from the Pari-mutuel Wagering
2846 Trust Fund of the Department of Business and Professional
2847 Regulation from revenues received pursuant to s. 551.118,
2848 Florida Statutes, for contract services related to the
2849 prevention of compulsive and addictive gambling.
2850 Section 51. Sections 1 and 51 of this act shall take effect
2851 upon becoming a law if SB 788 or substantially similar
2852 legislation is adopted during the 2009 legislative session, or
2853 an extension thereof, and becomes law; except that, sections 2
2854 through 50 of this act shall take effect only if the Governor
2855 and an authorized representative of the Seminole Tribe of
2856 Florida execute an Indian gaming compact pursuant to the Indian
2857 Gaming Regulatory Act of 1988 and the requirements of SB 788, or
2858 similar legislation, and only if such compact is approved or
2859 deemed approved by the United States Department of the Interior,
2860 and such sections shall take effect on the date that the
2861 approved compact is published in the Federal Register.