Florida Senate - 2010                              CS for SB 640
       
       
       
       By the Committee on Regulated Industries; and Senator Jones
       
       
       
       
       580-04803-10                                           2010640c1
    1                        A bill to be entitled                      
    2         An act relating to pari-mutuel wagering; amending s.
    3         550.022, F.S.; redefining the term “full schedule of
    4         live racing or games” as it relates to certain jai
    5         alai permitholders who do not operate slot machines in
    6         their pari-mutuel facilities; amending s. 550.0951,
    7         F.S.; exempting pari-mutuel wagers at pari-mutuel
    8         facilities that do not operate slot machines from the
    9         tax on handle; imposing a surcharge on pari-mutuel
   10         licensees that do not operate slot machines if the
   11         taxes on slot machine revenue are less than a certain
   12         amount; specifying the maximum amount of the
   13         surcharge; providing for the calculation of the pro
   14         rata share of the surcharge for each pari-mutuel
   15         licensee that does not operate slot machines;
   16         specifying an exemption that may apply to the
   17         surcharge; providing for rules to set cost of
   18         regulation; amending s. 551.104, F.S.; revising slot
   19         machine license requirements; requiring a written
   20         agreement as a condition of license issuance or
   21         renewal; amending s. 849.086, F.S.; exempting a pari
   22         mutuel facility that operates a cardroom but does not
   23         operate slot machines from the tax on the gross
   24         receipts of the cardroom operations; revising the
   25         amounts that greyhound and jai alai permitholders that
   26         operate cardrooms must use to supplement greyhound
   27         purses or jai alai prize money; providing an effective
   28         date.
   29  
   30         Be It Enacted by the Legislature of the State of Florida:
   31         Section 1. Subsection (11) of section 550.002, Florida
   32  Statutes, as amended by section 4 of chapter 2009-170, Laws of
   33  Florida, is amended to read:
   34         550.002 Definitions.—As used in this chapter, the term:
   35         (11) “Full schedule of live racing or games” means, for a
   36  greyhound or jai alai permitholder, the conduct of a combination
   37  of at least 100 live evening or matinee performances during the
   38  preceding year; for a permitholder who has a converted permit or
   39  filed an application on or before June 1, 1990, for a converted
   40  permit, the conduct of a combination of at least 100 live
   41  evening and matinee wagering performances during either of the 2
   42  preceding years; for a jai alai permitholder who does not
   43  operate slot machines in its pari-mutuel facility, who has
   44  conducted at least 100 live performances per year for at least 3
   45  consecutive 10 years after December 31, 1992, and whose handle
   46  on live jai alai games conducted at its pari-mutuel facility has
   47  been less than $4 million per state fiscal year for at least 2
   48  consecutive years after June 30, 1992, the conduct of a
   49  combination of at least 40 live evening or matinee performances
   50  during the preceding year; for a jai alai permitholder who
   51  operates slot machines in its pari-mutuel facility, the conduct
   52  of a combination of at least 150 performances during the
   53  preceding year; for a harness permitholder, the conduct of at
   54  least 100 live regular wagering performances during the
   55  preceding year; for a quarter horse permitholder at its facility
   56  unless an alternative schedule of at least 20 live regular
   57  wagering performances is agreed upon by the permitholder and
   58  either the Florida Quarter Horse Racing Association or the
   59  horsemen’s association representing the majority of the quarter
   60  horse owners and trainers at the facility and filed with the
   61  division along with its annual date application, in the 2010
   62  2011 fiscal year, the conduct of at least 20 regular wagering
   63  performances, in the 2011-2012 and 2012-2013 fiscal years, the
   64  conduct of at least 30 live regular wagering performances, and
   65  for every fiscal year after the 2012-2013 fiscal year, the
   66  conduct of at least 40 live regular wagering performances; for a
   67  quarter horse permitholder leasing another licensed racetrack,
   68  the conduct of 160 events at the leased facility; and for a
   69  thoroughbred permitholder, the conduct of at least 40 live
   70  regular wagering performances during the preceding year. For a
   71  permitholder which is restricted by statute to certain operating
   72  periods within the year when other members of its same class of
   73  permit are authorized to operate throughout the year, the
   74  specified number of live performances which constitute a full
   75  schedule of live racing or games shall be adjusted pro rata in
   76  accordance with the relationship between its authorized
   77  operating period and the full calendar year and the resulting
   78  specified number of live performances shall constitute the full
   79  schedule of live games for such permitholder and all other
   80  permitholders of the same class within 100 air miles of such
   81  permitholder. A live performance must consist of no fewer than
   82  eight races or games conducted live for each of a minimum of
   83  three performances each week at the permitholder’s licensed
   84  facility under a single admission charge.
   85         Section 2. Subsection (5) of section 550.0951, Florida
   86  Statutes, as amended by section 7 of chapter 2009-170, Laws of
   87  Florida, is amended to read:
   88         550.0951 Payment of daily license fee and taxes;
   89  penalties.—
   90         (5) PAYMENT AND DISPOSITION OF FEES AND TAXES.—
   91         (a) Payments imposed by this section shall be paid to the
   92  division. The division shall deposit these sums with the Chief
   93  Financial Officer, to the credit of the Pari-mutuel Wagering
   94  Trust Fund, hereby established. The permitholder shall remit to
   95  the division payment for the daily license fee, the admission
   96  tax, the tax on handle, and the breaks tax. Such payments shall
   97  be remitted by 3 p.m. Wednesday of each week for taxes imposed
   98  and collected for the preceding week ending on Sunday. Beginning
   99  on July 1, 2012, such payments shall be remitted by 3 p.m. on
  100  the 5th day of each calendar month for taxes imposed and
  101  collected for the preceding calendar month. If the 5th day of
  102  the calendar month falls on a weekend, payments shall be
  103  remitted by 3 p.m. the first Monday following the weekend.
  104  Permitholders shall file a report under oath by the 5th day of
  105  each calendar month for all taxes remitted during the preceding
  106  calendar month. Such payments shall be accompanied by a report
  107  under oath showing the total of all admissions, the pari-mutuel
  108  wagering activities for the preceding calendar month, and such
  109  other information as may be prescribed by the division.
  110         (b)Notwithstanding any other law, a pari-mutuel wager
  111  placed at a pari-mutuel facility that does not operate slot
  112  machines, directly or through a host facility, and regardless of
  113  whether such wager was made on a live, intertrack, or simulcast
  114  race or game, is exempt from the tax otherwise due and payable
  115  on handle on a wager placed at the pari-mutuel facility.
  116         (c) If, during any state fiscal year, the aggregate amount
  117  of tax on slot machine revenue paid to the state by all pari
  118  mutuel licensees for the operation of slot machines is less than
  119  the aggregate amount of tax paid on slot machine revenue by all
  120  pari-mutuel licensees in the 2008-2009 state fiscal year plus
  121  the amount of the tax exemptions in paragraph (b) and s.
  122  849.086(13)(a), a surcharge shall be imposed on pari-mutuel
  123  licensees that do not operate slot machines. The surcharge
  124  equals the difference between the aggregate amount of tax paid
  125  by all pari-mutuel licensees on slot machine revenue in the
  126  2008-2009 state fiscal year plus the amount of the tax
  127  exemptions in paragraph (b) and s. 849.086(13)(a) and the
  128  aggregate amount of tax on slot machine revenue paid to the
  129  state by all pari-mutuel licensees in the applicable state
  130  fiscal year, not to exceed $15 million. Each pari-mutuel
  131  facility that does not operate slot machines shall pay its pro
  132  rata share of the surcharge to the state within 45 days after
  133  the end of the state fiscal year. The pro rata share of the
  134  surcharge for each licensee that does not operate slot machines
  135  shall be calculated as the total amount of taxes that would have
  136  been due to the state if the exemptions under paragraph (b) and
  137  s. 849.086(13)(a) did not apply, divided by the total of such
  138  amounts for all licensees that did not operate slot machines.
  139         (d) A pari-mutuel licensee that does not operate slot
  140  machines may apply the exemption to the tax on handle under s.
  141  550.09514(1) to the surcharge under paragraph (c). The surcharge
  142  under paragraph (c) may not be reduced by any other exemption.
  143         (e) This subsection does not affect the calculation and
  144  payment of greyhound purses or jai-alai prize money.
  145         (f) The Division of Pari-mutuel Wagering is authorized to
  146  collect a fee from each pari-mutuel permitholder that does not
  147  operate slot machines for use by the division to cover the cost
  148  of regulation of said pari-mutuel permitholders which is not
  149  funded by current revenue sources. The division shall adopt
  150  rules to set the fee level and method of collection.
  151         Section 3. Paragraphs (a) and (c) of subsection (10) of
  152  section 551.104, Florida Statutes, as amended by section 20 of
  153  chapter 2009-170, Laws of Florida, is amended to read:
  154         551.104 License to conduct slot machine gaming.—
  155         (10)(a)1. No slot machine license or renewal thereof shall
  156  be issued to an applicant holding a permit under chapter 550 to
  157  conduct pari-mutuel wagering meets of thoroughbred racing unless
  158  the applicant has on file with the division a binding written
  159  agreement between the applicant and the Florida Horsemen’s
  160  Benevolent and Protective Association, Inc., governing the
  161  payment of purses on live thoroughbred races conducted at the
  162  licensee’s pari-mutuel facility. In addition, no slot machine
  163  license or renewal thereof shall be issued to such an applicant
  164  unless the applicant has on file with the division a binding
  165  written agreement between the applicant and the Florida
  166  Thoroughbred Breeders’ Association, Inc., governing the payment
  167  of breeders’, stallion, and special racing awards on live
  168  thoroughbred races conducted at the licensee’s pari-mutuel
  169  facility. The agreement governing purses and the agreement
  170  governing awards may direct the payment of such purses and
  171  awards from revenues generated by any wagering or gaming the
  172  applicant is authorized to conduct under Florida law. All purses
  173  and awards shall be subject to the terms of chapter 550. All
  174  sums for breeders’, stallion, and special racing awards shall be
  175  remitted monthly to the Florida Thoroughbred Breeders’
  176  Association, Inc., for the payment of awards subject to the
  177  administrative fee authorized in s. 550.2625(3).
  178         2. No slot machine license or renewal thereof shall be
  179  issued to an applicant holding a permit under chapter 550 to
  180  conduct pari-mutuel wagering meets of quarter horse racing
  181  unless the applicant has on file with the division a binding
  182  written agreement between the applicant and the Florida Quarter
  183  Horse Racing Association or the association representing a
  184  majority of the horse owners and trainers at the applicant’s
  185  eligible facility, governing the payment of purses on live
  186  quarter horse races conducted at the licensee’s pari-mutuel
  187  facility. The agreement governing purses may direct the payment
  188  of such purses from revenues generated by any wagering or gaming
  189  the applicant is authorized to conduct under Florida law. All
  190  purses shall be subject to the terms of chapter 550.
  191         3. No slot machine license or renewal thereof shall be
  192  issued to an applicant holding a permit under chapter 550 to
  193  conduct pari-mutuel wagering meets of standardbred horse racing
  194  unless the applicant has on file with the division a binding
  195  written agreement between the applicant and the Florida
  196  Standardbred Breeders and Owners Association governing the
  197  payment of purses on live standardbred horse races conducted at
  198  the licensee’s pari-mutuel facility. The agreement governing
  199  purses may direct the payment of such purses from revenues
  200  generated by any wagering or gaming that the applicant is
  201  authorized to conduct under Florida law. All purses shall be
  202  subject to the terms of chapter 550.
  203         (b) The division shall suspend a slot machine license if
  204  one or more of the agreements required under paragraph (a) are
  205  terminated or otherwise cease to operate or if the division
  206  determines that the licensee is materially failing to comply
  207  with the terms of such an agreement. Any such suspension shall
  208  take place in accordance with chapter 120.
  209         (c)1. If an agreement required under paragraph (a) cannot
  210  be reached prior to the initial issuance of the slot machine
  211  license, either party may request arbitration or, in the case of
  212  a renewal, if an agreement required under paragraph (a) is not
  213  in place 120 days prior to the scheduled expiration date of the
  214  slot machine license, the applicant shall immediately ask the
  215  American Arbitration Association to furnish a list of 11
  216  arbitrators, each of whom shall have at least 5 years of
  217  commercial arbitration experience and no financial interest in
  218  or prior relationship with any of the parties or their
  219  affiliated or related entities or principals. Each required
  220  party to the agreement shall select a single arbitrator from the
  221  list provided by the American Arbitration Association within 10
  222  days of receipt, and the individuals so selected shall choose
  223  one additional arbitrator from the list within the next 10 days.
  224         2. If an agreement required under paragraph (a) is not in
  225  place 60 days after the request under subparagraph 1. in the
  226  case of an initial slot machine license or, in the case of a
  227  renewal, 60 days prior to the scheduled expiration date of the
  228  slot machine license, the matter shall be immediately submitted
  229  to mandatory binding arbitration to resolve the disagreement
  230  between the parties. The three arbitrators selected pursuant to
  231  subparagraph 1. shall constitute the panel that shall arbitrate
  232  the dispute between the parties pursuant to the American
  233  Arbitration Association Commercial Arbitration Rules and chapter
  234  682.
  235         3. At the conclusion of the proceedings, which shall be no
  236  later than 90 days after the request under subparagraph 1. in
  237  the case of an initial slot machine license or, in the case of a
  238  renewal, 30 days prior to the scheduled expiration date of the
  239  slot machine license, the arbitration panel shall present to the
  240  parties a proposed agreement that the majority of the panel
  241  believes equitably balances the rights, interests, obligations,
  242  and reasonable expectations of the parties. The parties shall
  243  immediately enter into such agreement, which shall satisfy the
  244  requirements of paragraph (a) and permit issuance of the pending
  245  annual slot machine license or renewal. The agreement produced
  246  by the arbitration panel under this subparagraph shall be
  247  effective until the last day of the license or renewal period or
  248  until the parties enter into a different agreement. Each party
  249  shall pay its respective costs of arbitration and shall pay one
  250  half of the costs of the arbitration panel, unless the parties
  251  otherwise agree. If the agreement produced by the arbitration
  252  panel under this subparagraph remains in place 120 days prior to
  253  the scheduled issuance of the next annual license renewal, then
  254  the arbitration process established in this paragraph will begin
  255  again.
  256         4. In the event that neither of the agreements required
  257  under paragraph (a) subparagraph (a)1. or the agreement required
  258  under subparagraph (a)2. are not in place by the deadlines
  259  established in this paragraph, arbitration regarding each
  260  agreement will proceed independently, with separate lists of
  261  arbitrators, arbitration panels, arbitration proceedings, and
  262  resulting agreements.
  263         5. With respect to the agreements required under paragraph
  264  (a) governing the payment of purses, the arbitration and
  265  resulting agreement called for under this paragraph shall be
  266  limited to the payment of purses from slot machine revenues
  267  only.
  268         Section 4. Paragraphs (a) and (d) of subsection (13) of
  269  section 849.086, Florida Statutes, as amended by section 24 of
  270  chapter 2009-170, Laws of Florida, are amended to read:
  271         849.086 Cardrooms authorized.—
  272         (13) TAXES AND OTHER PAYMENTS.—
  273         (a) Each cardroom operator shall pay a tax to the state of
  274  10 percent of the cardroom operation’s monthly gross receipts.
  275  However, a pari-mutuel facility that does not operate slot
  276  machines is exempt from the tax under this paragraph.
  277         (d)1. Each greyhound and jai alai permitholder that
  278  operates a cardroom facility and slot machines shall use at
  279  least 4 percent of such permitholder’s cardroom monthly gross
  280  receipts to supplement greyhound purses or jai alai prize money,
  281  respectively, during the permitholder’s next ensuing pari-mutuel
  282  meet. Each greyhound and jai alai permitholder that operates a
  283  cardroom facility but does not operate slot machines shall use
  284  at least 6 percent of such permitholder’s cardroom monthly gross
  285  receipts to supplement greyhound purses or jai alai prize money,
  286  respectively, during the permitholder’s next ensuing pari-mutuel
  287  meet.
  288         2. Each thoroughbred and harness horse racing permitholder
  289  that operates a cardroom facility shall use at least 50 percent
  290  of such permitholder’s cardroom monthly net proceeds as follows:
  291  47 percent to supplement purses and 3 percent to supplement
  292  breeders’ awards during the permitholder’s next ensuing racing
  293  meet.
  294         3. No cardroom license or renewal thereof shall be issued
  295  to an applicant holding a permit under chapter 550 to conduct
  296  pari-mutuel wagering meets of quarter horse racing unless the
  297  applicant has on file with the division a binding written
  298  agreement between the applicant and the Florida Quarter Horse
  299  Racing Association or the association representing a majority of
  300  the horse owners and trainers at the applicant’s eligible
  301  facility, governing the payment of purses on live quarter horse
  302  races conducted at the licensee’s pari-mutuel facility. The
  303  agreement governing purses may direct the payment of such purses
  304  from revenues generated by any wagering or gaming the applicant
  305  is authorized to conduct under Florida law. All purses shall be
  306  subject to the terms of chapter 550.
  307         Section 5. This act shall take effect July 1, 2010.