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         547.05Licensure 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         547.06Tax.—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         547.07Points 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         547.08Violations.—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.