Florida Senate - 2015 COMMITTEE AMENDMENT Bill No. SPB 7088 Ì798676eÎ798676 LEGISLATIVE ACTION Senate . House Comm: WD . 04/10/2015 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Regulated Industries (Sachs) recommended the following: 1 Senate Amendment (with title amendment) 2 3 Between lines 45 and 46 4 insert: 5 Section 2. Section 550.6309, Florida Statutes, is created 6 to read: 7 550.6309 Intertrack and simulcast wagering pilot program. 8 The department shall establish a pilot program pursuant to this 9 section which authorizes intertrack and simulcast wagers at a 10 public food service establishment licensed under chapter 509 11 which is licensed under the Beverage Law or a vendor that is 12 licensed under s. 563.02(1)(b)-(f), s. 564.02(1)(b)-(f), or s. 13 565.02(1)(b)-(f). 14 (1) LOCATION.—The department shall select two counties in 15 which to implement the program. The department must select one 16 county with a population fewer than 300,000, and one county with 17 a population between 300,000 and 1 million. 18 (a) Before the department may select a county for the 19 program, the governing board of the county must pass a 20 resolution authorizing the county’s participation in the program 21 and the governing board of the county must send a written 22 notification of the resolution to the department from an 23 authorized representative of that county. 24 (b) The department shall select the first county in each 25 population category for the pilot program which submits the 26 written notification specified in paragraph (a). 27 (2) PERMIT.—A public food service establishment and vendor 28 must use a company that is authorized by the department, 29 pursuant to this section, to set up and operate the equipment 30 necessary to offer intertrack or simulcast wagering. 31 (a) An applicant for a permit must submit an application 32 that includes all of the following: 33 1. The full name of the applicant. 34 2. If a corporation, the name of the state in which the 35 corporation is incorporated and the names and addresses of the 36 officers, directors, and shareholders holding at least 5 percent 37 equity or, if a business entity other than a corporation, the 38 names and addresses of the principals, partners, or shareholders 39 holding at least 5 percent equity. 40 3. The names and addresses of the ultimate equitable owners 41 for a corporation or other business entity, if different from 42 those provided under subparagraph 2., unless the securities of 43 the corporation or entity are registered pursuant to s. 12 of 44 the Securities Exchange Act of 1934, 15 U.S.C. ss. 78a-78kk, and 45 if such corporation or entity files with the United States 46 Securities and Exchange Commission the reports required by s. 13 47 of that act or if the securities of the corporation or entity 48 are regularly traded on an established securities market in the 49 United States. 50 4. A statement of the assets and liabilities of the 51 applicant. 52 5. A business plan for the first year of operation. 53 6. A documentation that demonstrates that: 54 a. The applicant has at least 2 years’ experience in 55 providing these types of services in similar venues in other 56 states; 57 b. The applicant has provided a complete description of the 58 transmission, totalizer, and data processing equipment to be 59 used; 60 c. The equipment proposed to be used by the applicant is 61 capable of authenticating state identification and verifying the 62 user’s age before the user engaging in any wagering activity; 63 d. The applicant is capable of monitoring the wagering 64 activity in real time; 65 e. The applicant has provided a system without the use of 66 tellers to receive and pay wagers in real time to the users; 67 f. The management or management groups responsible for the 68 operations of the applicant have sufficient management 69 experience to properly operate this type of wagering; and 70 g. The applicant has provided sufficient security measures 71 to protect the integrity of the live broadcast signal and the 72 integrity of the wagering process. 73 7. For each individual listed in the application as an 74 owner, partner, officer, or director, a complete set of 75 fingerprints taken by an authorized law enforcement officer. 76 Fingerprints must be submitted to the Federal Bureau of 77 Investigation for processing. Applicants who are foreign 78 nationals shall submit such documents as necessary to allow the 79 division to conduct criminal history records checks in the 80 applicant’s home country. The applicant must pay the cost of 81 processing. The division may charge up to a $2 handling fee for 82 each set of fingerprint records. 83 8. A fee, as determined by department rule. In calculating 84 the permit fee, the department shall consider the costs 85 associated with filing and investigating applications as well as 86 the amount of funds appropriated by the Legislature to implement 87 and administer the pilot program. 88 9. Any other information the department requires. 89 (b) A permit may not be issued to an applicant if a member 90 of the board, the chief executive officer, or any management 91 personnel of the applicant has been found guilty of, or has pled 92 nolo contendere to, a felony or an act of fraud. The department 93 may charge the applicant for reasonable and anticipated costs 94 incurred in determining the eligibility of the applicant under 95 this paragraph. 96 (c) Upon receiving an application and any necessary 97 amendments, the department shall verify the information 98 contained in the application. If the applicant meets all 99 requirements, conditions, and qualifications of this section and 100 the rules of the department, the department will issue the 101 permit. 102 (d) Subsequent annual renewal applications from a licensee 103 must be accompanied by proof, in such form as the department 104 requires, that the licensee still meets all of the conditions 105 and requirements for licensure under this section. 106 (e) If a permit is held by a business entity, the transfer 107 of at least 10 percent of the stock or other evidence of 108 ownership or equity in the permitholder may not be made without 109 the prior approval of the transferee by the department. Changes 110 in ownership or interest of at least 5 percent of the stock or 111 other evidence of ownership or equity in the permitholder must 112 be approved by the department before such change, unless the 113 owner is an existing owner of that permit who was previously 114 approved by the department. Changes in ownership or interest of 115 less than 5 percent must be reported to the department within 20 116 days of the change. The department may then conduct an 117 investigation to ensure that the permit is properly updated to 118 show the change in ownership or interest. 119 (f) The department may revoke or suspend a permit issued 120 under this chapter upon the willful violation by a permitholder 121 of any provision of this chapter or rule adopted under this 122 chapter. In lieu of suspending or revoking a permit, the 123 department may impose a civil penalty against the permitholder 124 for a violation of this chapter or any rule adopted by the 125 department. The penalty may not exceed $1,000 for each separate 126 offense. All penalties imposed and collected must be deposited 127 with the Chief Financial Officer to the credit of the General 128 Revenue Fund. 129 (3) LICENSE TO OPERATE.— 130 (a) Each permitholder may apply for an annual license with 131 the division to operate for the upcoming fiscal year. The 132 permitholder seeking an annual license must apply with the 133 division between December 15 and January 4 of each year. 134 (b) Each permitholder must include in the annual license 135 application the binding written agreement required under 136 subsection (4) and the name and location of pari-mutuel 137 facilities with which the applicant intends to contract. A 138 permitholder must amend its license within 7 days of any changes 139 to the license operation. 140 (4) DISTRIBUTION.—A permitholder may not receive a license 141 until it files with the department a binding written agreement 142 that governs takeout and the payment of purses between the 143 permitholder and a pari-mutuel facility hosting races. A 144 permitholder may not stream a signal for the purpose of 145 intertrack or simulcast wagering from a pari-mutuel facility 146 unless the permitholder has entered into a binding written 147 agreement with such facility and the written agreement is on 148 file with the department. 149 (a) For thoroughbred horse racing, the written agreement 150 must be signed by the Florida Thoroughbred Breeders’ Association 151 or the association representing a majority of the horse owners 152 and trainers at the eligible facility. 153 (b) For harness horse racing, the written agreement must be 154 signed by the Florida Standardbred Breeders and Owners 155 Association or the association representing a majority of the 156 horse owners and trainers at the eligible facility. 157 (c) For quarter horse racing, the written agreement must be 158 signed by the Florida Quarter Horse Racing Association or the 159 association representing a majority of the horse owners and 160 trainers at the eligible facility. 161 (d) For jai alai games and greyhound racing, at least 1 162 percent of the wagering proceeds from greyhound racing must be 163 given to the association that represents a majority of greyhound 164 owners, and at least 1 percent of the wagering proceeds from jai 165 alai games must be given to the association that represents a 166 majority of jai alai players in order to supplement purses. 167 (e) One percent of takeout must be distributed to the pari 168 mutuel facility located closest to the public food service 169 establishment or vendor offering pari-mutuel wagering. 170 (4) TAX.—Intertrack and simulcast wagering offered by a 171 licensee shall be taxed at the rate of 0.85 percent. 172 (5) LIMITATIONS.—A permitholder licensed under this section 173 may not conduct pari-mutuel wagering at a public food 174 establishment or vendor that is located within 5 miles of a 175 pari-mutuel facility. 176 177 178 ================= T I T L E A M E N D M E N T ================ 179 And the title is amended as follows: 180 Delete lines 2 - 12 181 and insert: 182 An act relating to gaming; amending s. 285.710, F.S.; 183 authorizing and directing the Governor to execute a 184 specified written amendment to the Gaming Compact 185 between the Seminole Tribe of Florida and the State of 186 Florida; authorizing and directing the Governor to 187 cooperate with the Tribe in seeking approval of the 188 amendment; providing that the amendment of the compact 189 does not require legislative ratification in certain 190 circumstances; creating s. 550.6309, F.S.; requiring 191 the Department of Business and Professional Regulation 192 to establish a specified pilot program; requiring the 193 department to select two counties in which to 194 implement the program; requiring the governing board 195 of the county to pass a specified resolution and send 196 a written notification of the resolution to the 197 department before the department may select a county 198 for the program; requiring the department to select a 199 county in a specified manner; requiring a public food 200 service establishment and vendor to use a company that 201 is authorized by the department; requiring an 202 applicant to submit an application with specified 203 information to receive a permit; prohibiting the 204 issuance of a permit if specified persons have been 205 found guilty of, or pled nolo contendere to specified 206 crimes; authorizing the department to charge the 207 applicant for reasonable and anticipated costs and 208 fees in determining the eligibility of the applicant; 209 prohibiting a permit from being issued to specified 210 persons; requiring that the department verify the 211 informed contained in the application; requiring prior 212 approval by the department for specified transfers of 213 stock; authorizing the department to revoke or suspend 214 a permit in certain circumstances; authorizing the 215 department to impose a civil penalty in lieu of the 216 suspension or revocation of the permit; authorizing a 217 permitholder to apply for an annual license; requiring 218 a permitholder to include in the annual license 219 specified information; providing that a permitholder 220 may not receive a license until it files with the 221 department a specified binding written agreement; 222 prohibiting a permitholder from streaming a signal in 223 certain circumstances; requiring a written agreement 224 with specified organizations for certain types of 225 racing or game; requiring a specified percentage of 226 takeout to be distributed to the pari-mutuel facility 227 located closest to the public food service 228 establishment or vendor; requiring a tax on intertrack 229 and simulcast wagering; prohibiting a specified 230 permitholder from conducting pari-mutual wagering at a 231 public food service establishment or vendor within a 232 specified mileage of a pari-mutuel facility; providing 233 an