Florida Senate - 2014 SB 1530 By Senator Abruzzo 25-01083A-14 20141530__ 1 A bill to be entitled 2 An act relating to arcades; creating ch. 547, F.S., 3 entitled “Senior Arcades”; creating s. 547.01, F.S.; 4 providing legislative intent and findings; creating s. 5 547.02, F.S.; defining terms; creating s. 547.03, 6 F.S.; requiring the Department of Business and 7 Professional Regulation to implement and administer 8 ch. 547, F.S.; authorizing the department to create a 9 division; creating s. 547.04, F.S.; authorizing an 10 amusement machine business to operate in this state; 11 creating s. 547.05, F.S.; providing licensure and 12 registration requirements; providing fees; creating s. 13 547.06, F.S.; requiring a tax to be assessed on the 14 net revenue of each amusement machine; creating s. 15 547.07, F.S.; requiring customers to receive a points 16 card to receive prizes; requiring amusement machine 17 centers to make points cards available to customers; 18 prohibiting cash prizes; providing points card 19 provider requirements; providing for the use of a 20 points card; requiring an amusement machine business 21 to report monies played to the department; requiring a 22 points card provider to create an application to 23 review and confirm redemptions and report them to the 24 department; creating s. 547.08, F.S.; providing 25 penalties for violations; providing an effective date. 26 27 Be It Enacted by the Legislature of the State of Florida: 28 29 Section 1. Chapter 547, Florida Statutes, is created and is 30 entitled “Senior Arcades.” 31 Section 2. Section 547.01, Florida Statutes, is created to 32 read: 33 547.01 Legislative intent and findings.—In the interest of 34 providing an active, entertaining, and intellectual exercise for 35 senior citizens, and in order to prevent the unregulated 36 operation of a bona fide amusement machine business, the 37 Legislature intends to aid in the enforcement of the tax 38 obligations that arise from the operation of bona fide coin 39 operated amusement machine businesses and to prevent 40 unauthorized cash payouts. The Legislature finds that the 41 operation of a bona fide coin-operated amusement machine 42 business can be conducted in a manner that enhances the fiscal 43 soundness of this state while safeguarding the public welfare. 44 Section 3. Section 547.02, Florida Statutes, is created to 45 read: 46 547.02 Definitions.—As used in this chapter, the term: 47 (1) “Amusement machine center” means a facility operated by 48 an amusement machine business and registered under this chapter. 49 (2) “Amusement machine” means a machine that displays games 50 and is operated for the purpose of entertainment or amusement. 51 The term includes only noncasino games that require skill. The 52 term does not include a game or device defined as a gambling 53 device in 15 U.S.C. s. 1171. An amusement machine is not 54 considered a coin-operated amusement machine for the purposes of 55 chapter 212. 56 (3) “Amusement machine business” means a business entity 57 that offers amusement machine play pursuant to this chapter and 58 that limits entry to its amusement machine centers to persons 59 who are 21 years of age or older. 60 (4) “Department” means the Department of Business and 61 Professional Regulation. 62 (5) “Points card” means a points-based reloadable reward 63 card that is offered to an amusement machine business and that 64 is connected to the network of a points card provider that 65 satisfies the requirements of s. 547.07. 66 (6) “Redemption bank” means value prepaid by an amusement 67 machine business to a points card provider which can be loaded 68 onto a points card upon redemption by a customer. 69 (7) “Reporting device” means a tamper-evident device 70 securely installed in each amusement machine which 71 automatically, electronically, and permanently stores and 72 reports values credited to the machine for play, values loaded 73 to a points card, power outages, disconnects, and machine 74 resets. 75 (8) “Skill” means the presence of one or more of the 76 following: 77 (a) A learned power of doing a thing competently. 78 (b) A particular craft, art, ability, strategy, or tactic. 79 (c) A developed or acquired aptitude or ability. 80 (d) Dexterity, fluency, or coordination in the execution of 81 learned physical or mental tasks, or both. 82 (e) Technical proficiency or expertise. 83 (f) Development or implementation of strategy or tactics in 84 order to achieve a goal. 85 (g) Knowledge of the means or methods of accomplishing a 86 task. 87 Section 4. Section 547.03, Florida Statutes, is created to 88 read: 89 547.03 Administration.—The department shall adopt rules to 90 implement and administer this chapter and may create a division 91 to perform such functions. 92 Section 5. Section 547.04, Florida Statutes, is created to 93 read: 94 547.04 Authorization.—An amusement machine business may be 95 operated in this state if it satisfies the requirements of this 96 chapter and department rule. 97 Section 6. Section 547.05, Florida Statutes, is created to 98 read: 99 547.05 Licensure and registration; fees.—A person may not 100 operate an amusement machine business in this state unless the 101 person obtains an amusement machine license from the department 102 and each amusement machine center operated under that license is 103 registered with the department. 104 (1) LICENSURE.—An applicant shall submit an application to 105 the department for approval and do all of the following: 106 (a) Submit fingerprints pursuant to procedures established 107 by the department through a vendor approved by the Department of 108 Law Enforcement to be used for a criminal history check. The 109 department may not issue a license to a person convicted of a 110 felony or any crime involving fraud. 111 (c) Register with the department each amusement machine 112 center the applicant plans to operate and pay the required 113 registration fee. 114 (d) Demonstrate that each amusement machine center contains 115 at least 50 machines. 116 (e) Pay the annual permitting fee required for each 117 amusement machine. 118 (f) Pay a one-time licensing fee. 119 (g) Satisfy the requirements of this chapter and department 120 rule. 121 (2) FEES.—The following fees are required: 122 (a) For licensure, a one-time fee of $25,000. 123 (b) For registration, a one-time fee of $1,000 for each 124 amusement machine center. 125 (c) For a permit, an annual fee of $200 per machine. 126 Section 7. Section 547.06, Florida Statutes, is created to 127 read: 128 547.06 Tax.—A tax of 7.5 percent shall be assessed on the 129 net revenue generated by each amusement machine. 130 Section 8. Section 547.07, Florida Statutes, is created to 131 read: 132 547.07 Points card.—Customers may receive prizes from play 133 only through the exchange of points on a points card, which 134 shall be made available by an amusement machine center to each 135 customer. An amusement machine center may not award cash prizes 136 to its customers and all points awarded must be reported to the 137 department. 138 (1) To obtain points cards for its customers, amusement 139 machine businesses must select a points card provider. The 140 points card provider must be a money services business licensed 141 under chapter 560 or an authorized vendor of such money services 142 business. The points cards must contain a conspicuously located 143 notice that states, “Not valid for the purchase of alcoholic 144 beverages, gift cards, or gift certificates, and may not be 145 exchanged for cash.” A points card provider may not sell or 146 market, in any advertising medium, its points card products to 147 the general public or redeem a points card for cash. A points 148 card provider may only distribute points cards to amusement 149 machine businesses and their amusement machine centers. Points 150 cards may be purchased only through electronic bank transfers 151 between a points card provider and an amusement machine 152 business. 153 (2) Points card providers must have an existing graphical 154 user interface to allow for immediate implementation of the 155 points program while amusement machines are modified to comply 156 with this chapter. 157 (3) A customer may accumulate points on a points card based 158 on his or her performance on a machine. An amusement machine 159 business or center must use a secure Internet connection to load 160 value to a points card. Value must automatically load to the 161 points card within 15 minutes and the value shall be deducted 162 from the amusement machine center’s redemption bank. A player 163 may redeem his or her points in exchange for merchandise using 164 the points card at a retail establishment participating in the 165 points card provider’s network. 166 (4) A points card provider must provide an application for 167 amusement machine businesses and their employees to securely 168 load, review, and confirm values loaded to points cards. A 169 webpage must be provided to a customer to track his or her 170 points card history and value. 171 (5) Beginning November 1, 2014, and each day thereafter: 172 (a) An amusement machine business must electronically 173 report monies played in its amusement machine centers to its 174 points card provider using a reporting device; and 175 (b) A points card provider must electronically submit to 176 the department, in a manner determined by the department, a 177 reconciled report that details all money played on amusement 178 machines and all points loaded to points cards of amusement 179 machine businesses in its network. 180 (6) Points cards may only be issued to customers who 181 register with a points card provider, pass a United States 182 Office of Foreign Assets Control check, and agree to allow their 183 redemption value to be reported to the department. 184 Section 9. Section 547.08, Florida Statutes, is created to 185 read: 186 547.08 Violations.—An owner of an amusement machine 187 business or an operator of an amusement machine center who 188 violates this chapter commits a felony of the third degree, 189 punishable as provided in s. 775.082, s. 775.083, or s. 775.084. 190 Section 10. This act shall take effect July 1, 2014.