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 consecutive10years 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 thatneither ofthe agreements required 257 under paragraph (a)subparagraph (a)1. or the agreement required258under 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.