| 1 | A bill to be entitled |
| 2 | An act relating to slot machines and slot machine |
| 3 | components; amending s. 551.103, F.S.; requiring the |
| 4 | Division of Pari-mutuel Wagering within the Department |
| 5 | of Business and Professional Regulation to adopt rules |
| 6 | regulating slot machines and providing specifications |
| 7 | for the internal components of slot machines; |
| 8 | requiring that the division adopt specifications and |
| 9 | procedures to ensure random probabilities of winning |
| 10 | plays and provide for the operation of random-number |
| 11 | generators; amending s. 551.104, F.S.; deleting |
| 12 | obsolete provisions; clarifying duties of a slot |
| 13 | machine licensee to conform to changes made by the |
| 14 | act; amending s. 551.121, F.S.; prohibiting a slot |
| 15 | machine's random-number generator from serving more |
| 16 | than one station or terminal where an individual |
| 17 | player places his or her wagers; providing for |
| 18 | progressive jackpot payouts; providing an effective |
| 19 | date. |
| 20 |
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| 21 | Be It Enacted by the Legislature of the State of Florida: |
| 22 |
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| 23 | Section 1. Subsection (1) of section 551.103, Florida |
| 24 | Statutes, is amended to read: |
| 25 | 551.103 Powers and duties of the division and law |
| 26 | enforcement.- |
| 27 | (1) The division shall adopt, pursuant to the provisions |
| 28 | of ss. 120.536(1) and 120.54, all rules necessary to implement, |
| 29 | administer, and regulate slot machines and slot machine gaming |
| 30 | as authorized in this chapter. The Such rules must include: |
| 31 | (a) Procedures for applying for a slot machine license and |
| 32 | renewal of a slot machine license. |
| 33 | (b) Technical requirements and the qualifications |
| 34 | contained in this chapter that are necessary to receive a slot |
| 35 | machine license or slot machine occupational license. |
| 36 | (c) Procedures to scientifically test and technically |
| 37 | evaluate slot machines, including all components, hardware, and |
| 38 | software for slot machines, for compliance with this chapter. |
| 39 | The division may contract with an independent testing laboratory |
| 40 | to conduct any necessary testing under this section. The |
| 41 | independent testing laboratory must have a national reputation |
| 42 | and be which is demonstrably competent and qualified to |
| 43 | scientifically test and evaluate slot machines for compliance |
| 44 | with this chapter and to otherwise perform the functions |
| 45 | assigned to it in this chapter. An independent testing |
| 46 | laboratory may shall not be owned or controlled by a licensee. |
| 47 | The use of an independent testing laboratory for any purpose |
| 48 | related to the conduct of slot machine gaming by a licensee |
| 49 | under this chapter shall be made from a list of one or more |
| 50 | laboratories approved by the division. |
| 51 | (d) Procedures relating to slot machine revenues, |
| 52 | including verifying and accounting for such revenues, auditing, |
| 53 | and collecting taxes and fees consistent with this chapter. |
| 54 | (e) Procedures for regulating, managing, and auditing the |
| 55 | operation, financial data, and program information relating to |
| 56 | slot machine gaming which that allow the division and the |
| 57 | Department of Law Enforcement to audit the operation, financial |
| 58 | data, and program information of a slot machine licensee, as |
| 59 | required by the division or the Department of Law Enforcement, |
| 60 | and provide the division and the Department of Law Enforcement |
| 61 | with the ability to monitor, at any time on a real-time basis, |
| 62 | wagering patterns, payouts, tax collection, and compliance with |
| 63 | any rules adopted by the division for the regulation and control |
| 64 | of slot machines operated under this chapter. The Such |
| 65 | continuous and complete access, at any time on a real-time |
| 66 | basis, shall include the ability of either the division or the |
| 67 | Department of Law Enforcement to suspend play immediately on |
| 68 | particular slot machines if monitoring of the facilities-based |
| 69 | computer system indicates possible tampering or manipulation of |
| 70 | those slot machines or the ability to suspend play immediately |
| 71 | of the entire operation if the tampering or manipulation is of |
| 72 | the computer system itself. The division shall notify the |
| 73 | Department of Law Enforcement or the Department of Law |
| 74 | Enforcement shall notify the division, as appropriate, whenever |
| 75 | there is a suspension of play under this paragraph. The division |
| 76 | and the Department of Law Enforcement shall exchange the such |
| 77 | information necessary for and cooperate in the investigation of |
| 78 | the circumstances requiring suspension of play under this |
| 79 | paragraph. |
| 80 | (f) Procedures for requiring each licensee at his or her |
| 81 | own cost and expense to supply the division with a bond having |
| 82 | the penal sum of $2 million payable to the Governor and his or |
| 83 | her successors in office for each year of the licensee's slot |
| 84 | machine operations. The Any bond shall be issued by a surety or |
| 85 | sureties approved by the division and the Chief Financial |
| 86 | Officer, conditioned to faithfully make the payments to the |
| 87 | Chief Financial Officer in his or her capacity as treasurer of |
| 88 | the division. The licensee shall be required to keep its books |
| 89 | and records and make reports as provided in this chapter and to |
| 90 | conduct its slot machine operations in conformity with this |
| 91 | chapter and all other provisions of law. The Such bond shall be |
| 92 | separate and distinct from the bond required in s. 550.125. |
| 93 | (g) Procedures for requiring licensees to maintain |
| 94 | specified records and submit any data, information, record, or |
| 95 | report, including financial and income records, required by this |
| 96 | chapter or determined by the division to be necessary to the |
| 97 | proper implementation and enforcement of this chapter. |
| 98 | (h) A requirement that the payout percentage of a slot |
| 99 | machine be no less than 85 percent. |
| 100 | (i) Minimum standards for security of the facilities, |
| 101 | including floor plans, security cameras, and other security |
| 102 | equipment. |
| 103 | (j) Procedures for requiring slot machine licensees to |
| 104 | implement and establish drug-testing programs for all slot |
| 105 | machine occupational licensees. |
| 106 | (k) Specifications of the required internal components for |
| 107 | a slot machine, including the location, configuration, and |
| 108 | function of the components, and the operating requirements for |
| 109 | all hardware and software. |
| 110 | (l) Procedures and specifications for slot machines to |
| 111 | ensure the random probabilities of winning plays and the |
| 112 | specifications for the operation of the random-number generator |
| 113 | of each slot machine. |
| 114 | Section 2. Subsection (4) of section 551.104, Florida |
| 115 | Statutes, is amended to read: |
| 116 | 551.104 License to conduct slot machine gaming.- |
| 117 | (4) As a condition of licensure and to maintain continued |
| 118 | authority for the conduct of slot machine gaming, the slot |
| 119 | machine licensee shall: |
| 120 | (a) Continue to be in compliance with this chapter. |
| 121 | (b) Continue to be in compliance with chapter 550, where |
| 122 | applicable, and maintain the pari-mutuel permit and license in |
| 123 | good standing pursuant to the provisions of chapter 550. |
| 124 | Notwithstanding any contrary provision of law and in order to |
| 125 | expedite the operation of slot machines at eligible facilities, |
| 126 | any eligible facility shall be entitled within 60 days after the |
| 127 | effective date of this act to amend its 2006-2007 pari-mutuel |
| 128 | wagering operating license issued by the division under ss. |
| 129 | 550.0115 and 550.01215. The division shall issue a new license |
| 130 | to the eligible facility to effectuate any approved change. |
| 131 | (c) Conduct no fewer than a full schedule of live racing |
| 132 | or games as defined in s. 550.002(11). A permitholder's |
| 133 | responsibility to conduct such number of live races or games |
| 134 | shall be reduced by the number of races or games that could not |
| 135 | be conducted due to the direct result of fire, war, hurricane, |
| 136 | or other disaster or event beyond the control of the |
| 137 | permitholder. |
| 138 | (d) Upon approval of any changes relating to the pari- |
| 139 | mutuel permit by the division, be responsible for providing |
| 140 | appropriate current and accurate documentation on a timely basis |
| 141 | to the division in order to continue the slot machine license in |
| 142 | good standing. Changes in ownership or interest of a slot |
| 143 | machine license of 5 percent or more of the stock or other |
| 144 | evidence of ownership or equity in the slot machine license or |
| 145 | any parent corporation or other business entity that in any way |
| 146 | owns or controls the slot machine license must shall be approved |
| 147 | by the division before the prior to such change, unless the |
| 148 | owner is an existing holder of that license who was previously |
| 149 | approved by the division. Changes in ownership or interest of a |
| 150 | slot machine license of less than 5 percent, unless such change |
| 151 | results in a cumulative total of 5 percent or more, shall be |
| 152 | reported to the division within 20 days after the change. The |
| 153 | division may then conduct an investigation to ensure that the |
| 154 | license is properly updated to show the change in ownership or |
| 155 | interest. Reporting No reporting is not required if the person |
| 156 | holds is holding 5 percent or less equity or securities of a |
| 157 | corporate owner of the slot machine licensee that has its |
| 158 | securities registered pursuant to s. 12 of the Securities |
| 159 | Exchange Act of 1934, 15 U.S.C. ss. 78a-78kk, and if such |
| 160 | corporation or entity files with the United States Securities |
| 161 | and Exchange Commission the reports required by s. 13 of that |
| 162 | act or if the securities of the corporation or entity are |
| 163 | regularly traded on an established securities market in the |
| 164 | United States. A change in ownership or interest of less than 5 |
| 165 | percent which results in a cumulative ownership or interest of 5 |
| 166 | percent or more must shall be approved by the division before |
| 167 | the prior to such change unless the owner is an existing holder |
| 168 | of the license who was previously approved by the division. |
| 169 | (e) Allow the division and the Department of Law |
| 170 | Enforcement unrestricted access to and right of inspection of |
| 171 | facilities of a slot machine licensee in which any activity |
| 172 | relative to the conduct of slot machine gaming is conducted. |
| 173 | (f) Ensure that the facilities-based computer system that |
| 174 | the licensee will use for operational and accounting functions |
| 175 | of the slot machine facility is specifically structured to |
| 176 | facilitate regulatory oversight. The facilities-based computer |
| 177 | system shall be designed to provide the division and the |
| 178 | Department of Law Enforcement with the ability to monitor, at |
| 179 | any time on a real-time basis, the wagering patterns, payouts, |
| 180 | tax collection, and such other operations as necessary to |
| 181 | determine whether the facility is in compliance with statutory |
| 182 | provisions and rules adopted by the division for the regulation |
| 183 | and control of slot machine gaming. The division and the |
| 184 | Department of Law Enforcement shall have complete and continuous |
| 185 | access to this system. Such access shall include the ability of |
| 186 | either the division or the Department of Law Enforcement to |
| 187 | suspend play immediately on particular slot machines if |
| 188 | monitoring of the system indicates possible tampering or |
| 189 | manipulation of those slot machines or the ability to suspend |
| 190 | play immediately of the entire operation if the tampering or |
| 191 | manipulation is of the computer system itself. The computer |
| 192 | system shall be reviewed and approved by the division to ensure |
| 193 | necessary access, security, and functionality. The division may |
| 194 | adopt rules to provide for the approval process. |
| 195 | (g) Ensure that each slot machine is protected from |
| 196 | manipulation or tampering to affect the random probabilities of |
| 197 | winning plays. The division or the Department of Law Enforcement |
| 198 | has shall have the authority to suspend play upon reasonable |
| 199 | suspicion of any manipulation or tampering. When play has been |
| 200 | suspended on any slot machine, the division or the Department of |
| 201 | Law Enforcement may examine the any slot machine to determine |
| 202 | whether the machine has been tampered with or manipulated and |
| 203 | whether the machine should be returned to operation. |
| 204 | (h) Submit a security plan, including the facilities' |
| 205 | floor plan, the locations of security cameras, and a listing of |
| 206 | all security equipment that is capable of observing and |
| 207 | electronically recording activities being conducted in the |
| 208 | facilities of the slot machine licensee. The security plan must |
| 209 | meet the minimum security requirements as determined by the |
| 210 | division under s. 551.103(1)(i) and be implemented before the |
| 211 | prior to operation of slot machine gaming. The slot machine |
| 212 | licensee's facilities must adhere to the security plan at all |
| 213 | times. Any changes to the security plan must be submitted by the |
| 214 | licensee to the division before the plan is implemented prior to |
| 215 | implementation. The division shall furnish copies of the |
| 216 | security plan and changes in the plan to the Department of Law |
| 217 | Enforcement. |
| 218 | (i) Create and file with the division a written policy |
| 219 | for: |
| 220 | 1. Creating opportunities to purchase from vendors in this |
| 221 | state, including minority vendors. |
| 222 | 2. Creating opportunities for employment of residents of |
| 223 | this state, including minority residents. |
| 224 | 3. Ensuring opportunities for construction services from |
| 225 | minority contractors. |
| 226 | 4. Ensuring that opportunities for employment are offered |
| 227 | on an equal, nondiscriminatory basis. |
| 228 | 5. Training for employees on responsible gaming and |
| 229 | working with a compulsive or addictive gambling prevention |
| 230 | program to further its purposes as provided for in s. 551.118. |
| 231 | 6. The implementation of a drug-testing program that |
| 232 | includes, but is not limited to, requiring each employee to sign |
| 233 | an agreement that he or she understands that the slot machine |
| 234 | facility is a drug-free workplace. |
| 235 |
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| 236 | The slot machine licensee shall use the Internet-based job- |
| 237 | listing system of the Department of Economic Opportunity in |
| 238 | advertising employment opportunities. Beginning in June 2007, |
| 239 | Each slot machine licensee shall provide an annual report to the |
| 240 | division containing information indicating compliance with this |
| 241 | paragraph in regard to minority persons. |
| 242 | (j) Ensure that the payout percentage of a slot machine |
| 243 | gaming facility is at least 85 percent. |
| 244 | Section 3. Subsection (5) of section 551.121, Florida |
| 245 | Statutes, is amended to read: |
| 246 | 551.121 Prohibited activities and devices; exceptions.- |
| 247 | (5) A slot machine's random-number generator may not serve |
| 248 | more than one station or terminal where an individual player |
| 249 | places his or her wagers. However, a slot machine, or the |
| 250 | computer operating system linking the slot machine, may be |
| 251 | linked by any means to any other slot machine or computer |
| 252 | operating system within the facility of a slot machine licensee |
| 253 | for progressive jackpot payouts. A progressive system may be |
| 254 | used in conjunction with slot machines between licensed |
| 255 | facilities in Florida or in other jurisdictions. |
| 256 | Section 4. This act shall take effect upon becoming a law. |