HB 883

1
A bill to be entitled
2An act relating to slot machines and slot machine
3components; amending s. 551.103, F.S.; requiring the
4Division of Pari-mutuel Wagering within the Department
5of Business and Professional Regulation to adopt rules
6regulating slot machines and providing specifications
7for the internal components of slot machines;
8requiring that the division adopt specifications and
9procedures to ensure random probabilities of winning
10plays and provide for the operation of random-number
11generators; amending s. 551.104, F.S.; deleting
12obsolete provisions; clarifying duties of a slot
13machine licensee to conform to changes made by the
14act; amending s. 551.121, F.S.; prohibiting a slot
15machine's random-number generator from serving more
16than one station or terminal where an individual
17player places his or her wagers; providing for
18progressive jackpot payouts; providing an effective
19date.
20
21Be It Enacted by the Legislature of the State of Florida:
22
23     Section 1.  Subsection (1) of section 551.103, Florida
24Statutes, is amended to read:
25     551.103  Powers and duties of the division and law
26enforcement.-
27     (1)  The division shall adopt, pursuant to the provisions
28of ss. 120.536(1) and 120.54, all rules necessary to implement,
29administer, and regulate slot machines and slot machine gaming
30as authorized in this chapter. The Such rules must include:
31     (a)  Procedures for applying for a slot machine license and
32renewal of a slot machine license.
33     (b)  Technical requirements and the qualifications
34contained in this chapter that are necessary to receive a slot
35machine license or slot machine occupational license.
36     (c)  Procedures to scientifically test and technically
37evaluate slot machines, including all components, hardware, and
38software for slot machines, for compliance with this chapter.
39The division may contract with an independent testing laboratory
40to conduct any necessary testing under this section. The
41independent testing laboratory must have a national reputation
42and be which is demonstrably competent and qualified to
43scientifically test and evaluate slot machines for compliance
44with this chapter and to otherwise perform the functions
45assigned to it in this chapter. An independent testing
46laboratory may shall not be owned or controlled by a licensee.
47The use of an independent testing laboratory for any purpose
48related to the conduct of slot machine gaming by a licensee
49under this chapter shall be made from a list of one or more
50laboratories approved by the division.
51     (d)  Procedures relating to slot machine revenues,
52including verifying and accounting for such revenues, auditing,
53and collecting taxes and fees consistent with this chapter.
54     (e)  Procedures for regulating, managing, and auditing the
55operation, financial data, and program information relating to
56slot machine gaming which that allow the division and the
57Department of Law Enforcement to audit the operation, financial
58data, and program information of a slot machine licensee, as
59required by the division or the Department of Law Enforcement,
60and provide the division and the Department of Law Enforcement
61with the ability to monitor, at any time on a real-time basis,
62wagering patterns, payouts, tax collection, and compliance with
63any rules adopted by the division for the regulation and control
64of slot machines operated under this chapter. The Such
65continuous and complete access, at any time on a real-time
66basis, shall include the ability of either the division or the
67Department of Law Enforcement to suspend play immediately on
68particular slot machines if monitoring of the facilities-based
69computer system indicates possible tampering or manipulation of
70those slot machines or the ability to suspend play immediately
71of the entire operation if the tampering or manipulation is of
72the computer system itself. The division shall notify the
73Department of Law Enforcement or the Department of Law
74Enforcement shall notify the division, as appropriate, whenever
75there is a suspension of play under this paragraph. The division
76and the Department of Law Enforcement shall exchange the such
77information necessary for and cooperate in the investigation of
78the circumstances requiring suspension of play under this
79paragraph.
80     (f)  Procedures for requiring each licensee at his or her
81own cost and expense to supply the division with a bond having
82the penal sum of $2 million payable to the Governor and his or
83her successors in office for each year of the licensee's slot
84machine operations. The Any bond shall be issued by a surety or
85sureties approved by the division and the Chief Financial
86Officer, conditioned to faithfully make the payments to the
87Chief Financial Officer in his or her capacity as treasurer of
88the division. The licensee shall be required to keep its books
89and records and make reports as provided in this chapter and to
90conduct its slot machine operations in conformity with this
91chapter and all other provisions of law. The Such bond shall be
92separate and distinct from the bond required in s. 550.125.
93     (g)  Procedures for requiring licensees to maintain
94specified records and submit any data, information, record, or
95report, including financial and income records, required by this
96chapter or determined by the division to be necessary to the
97proper implementation and enforcement of this chapter.
98     (h)  A requirement that the payout percentage of a slot
99machine be no less than 85 percent.
100     (i)  Minimum standards for security of the facilities,
101including floor plans, security cameras, and other security
102equipment.
103     (j)  Procedures for requiring slot machine licensees to
104implement and establish drug-testing programs for all slot
105machine occupational licensees.
106     (k)  Specifications of the required internal components for
107a slot machine, including the location, configuration, and
108function of the components, and the operating requirements for
109all hardware and software.
110     (l)  Procedures and specifications for slot machines to
111ensure the random probabilities of winning plays and the
112specifications for the operation of the random-number generator
113of each slot machine.
114     Section 2.  Subsection (4) of section 551.104, Florida
115Statutes, is amended to read:
116     551.104  License to conduct slot machine gaming.-
117     (4)  As a condition of licensure and to maintain continued
118authority for the conduct of slot machine gaming, the slot
119machine licensee shall:
120     (a)  Continue to be in compliance with this chapter.
121     (b)  Continue to be in compliance with chapter 550, where
122applicable, and maintain the pari-mutuel permit and license in
123good standing pursuant to the provisions of chapter 550.
124Notwithstanding any contrary provision of law and in order to
125expedite the operation of slot machines at eligible facilities,
126any eligible facility shall be entitled within 60 days after the
127effective date of this act to amend its 2006-2007 pari-mutuel
128wagering operating license issued by the division under ss.
129550.0115 and 550.01215. The division shall issue a new license
130to the eligible facility to effectuate any approved change.
131     (c)  Conduct no fewer than a full schedule of live racing
132or games as defined in s. 550.002(11). A permitholder's
133responsibility to conduct such number of live races or games
134shall be reduced by the number of races or games that could not
135be conducted due to the direct result of fire, war, hurricane,
136or other disaster or event beyond the control of the
137permitholder.
138     (d)  Upon approval of any changes relating to the pari-
139mutuel permit by the division, be responsible for providing
140appropriate current and accurate documentation on a timely basis
141to the division in order to continue the slot machine license in
142good standing. Changes in ownership or interest of a slot
143machine license of 5 percent or more of the stock or other
144evidence of ownership or equity in the slot machine license or
145any parent corporation or other business entity that in any way
146owns or controls the slot machine license must shall be approved
147by the division before the prior to such change, unless the
148owner is an existing holder of that license who was previously
149approved by the division. Changes in ownership or interest of a
150slot machine license of less than 5 percent, unless such change
151results in a cumulative total of 5 percent or more, shall be
152reported to the division within 20 days after the change. The
153division may then conduct an investigation to ensure that the
154license is properly updated to show the change in ownership or
155interest. Reporting No reporting is not required if the person
156holds is holding 5 percent or less equity or securities of a
157corporate owner of the slot machine licensee that has its
158securities registered pursuant to s. 12 of the Securities
159Exchange Act of 1934, 15 U.S.C. ss. 78a-78kk, and if such
160corporation or entity files with the United States Securities
161and Exchange Commission the reports required by s. 13 of that
162act or if the securities of the corporation or entity are
163regularly traded on an established securities market in the
164United States. A change in ownership or interest of less than 5
165percent which results in a cumulative ownership or interest of 5
166percent or more must shall be approved by the division before
167the prior to such change unless the owner is an existing holder
168of the license who was previously approved by the division.
169     (e)  Allow the division and the Department of Law
170Enforcement unrestricted access to and right of inspection of
171facilities of a slot machine licensee in which any activity
172relative to the conduct of slot machine gaming is conducted.
173     (f)  Ensure that the facilities-based computer system that
174the licensee will use for operational and accounting functions
175of the slot machine facility is specifically structured to
176facilitate regulatory oversight. The facilities-based computer
177system shall be designed to provide the division and the
178Department of Law Enforcement with the ability to monitor, at
179any time on a real-time basis, the wagering patterns, payouts,
180tax collection, and such other operations as necessary to
181determine whether the facility is in compliance with statutory
182provisions and rules adopted by the division for the regulation
183and control of slot machine gaming. The division and the
184Department of Law Enforcement shall have complete and continuous
185access to this system. Such access shall include the ability of
186either the division or the Department of Law Enforcement to
187suspend play immediately on particular slot machines if
188monitoring of the system indicates possible tampering or
189manipulation of those slot machines or the ability to suspend
190play immediately of the entire operation if the tampering or
191manipulation is of the computer system itself. The computer
192system shall be reviewed and approved by the division to ensure
193necessary access, security, and functionality. The division may
194adopt rules to provide for the approval process.
195     (g)  Ensure that each slot machine is protected from
196manipulation or tampering to affect the random probabilities of
197winning plays. The division or the Department of Law Enforcement
198has shall have the authority to suspend play upon reasonable
199suspicion of any manipulation or tampering. When play has been
200suspended on any slot machine, the division or the Department of
201Law Enforcement may examine the any slot machine to determine
202whether the machine has been tampered with or manipulated and
203whether the machine should be returned to operation.
204     (h)  Submit a security plan, including the facilities'
205floor plan, the locations of security cameras, and a listing of
206all security equipment that is capable of observing and
207electronically recording activities being conducted in the
208facilities of the slot machine licensee. The security plan must
209meet the minimum security requirements as determined by the
210division under s. 551.103(1)(i) and be implemented before the
211prior to operation of slot machine gaming. The slot machine
212licensee's facilities must adhere to the security plan at all
213times. Any changes to the security plan must be submitted by the
214licensee to the division before the plan is implemented prior to
215implementation. The division shall furnish copies of the
216security plan and changes in the plan to the Department of Law
217Enforcement.
218     (i)  Create and file with the division a written policy
219for:
220     1.  Creating opportunities to purchase from vendors in this
221state, including minority vendors.
222     2.  Creating opportunities for employment of residents of
223this state, including minority residents.
224     3.  Ensuring opportunities for construction services from
225minority contractors.
226     4.  Ensuring that opportunities for employment are offered
227on an equal, nondiscriminatory basis.
228     5.  Training for employees on responsible gaming and
229working with a compulsive or addictive gambling prevention
230program to further its purposes as provided for in s. 551.118.
231     6.  The implementation of a drug-testing program that
232includes, but is not limited to, requiring each employee to sign
233an agreement that he or she understands that the slot machine
234facility is a drug-free workplace.
235
236The slot machine licensee shall use the Internet-based job-
237listing system of the Department of Economic Opportunity in
238advertising employment opportunities. Beginning in June 2007,
239Each slot machine licensee shall provide an annual report to the
240division containing information indicating compliance with this
241paragraph in regard to minority persons.
242     (j)  Ensure that the payout percentage of a slot machine
243gaming facility is at least 85 percent.
244     Section 3.  Subsection (5) of section 551.121, Florida
245Statutes, is amended to read:
246     551.121  Prohibited activities and devices; exceptions.-
247     (5)  A slot machine's random-number generator may not serve
248more than one station or terminal where an individual player
249places his or her wagers. However, a slot machine, or the
250computer operating system linking the slot machine, may be
251linked by any means to any other slot machine or computer
252operating system within the facility of a slot machine licensee
253for progressive jackpot payouts. A progressive system may be
254used in conjunction with slot machines between licensed
255facilities in Florida or in other jurisdictions.
256     Section 4.  This act shall take effect upon becoming a law.


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