Florida Senate - 2018                                    SB 1802
       
       
        
       By Senator Thurston
       
       
       
       
       
       33-01171-18                                           20181802__
    1                        A bill to be entitled                      
    2         An act relating to preview games and machines;
    3         creating s. 546.15, F.S.; defining terms; specifying
    4         the Department of Business and Professional Regulation
    5         is responsible for the licensure and regulation of
    6         preview games or machines; requiring applicants for
    7         licensure as a lessor, manufacturer, or operator to
    8         meet certain requirements; prohibiting operators from
    9         operating a preview game or machine not leased from a
   10         licensed lessor; specifying the maximum number of
   11         preview games or machines that may be in use at an
   12         operator’s location; requiring a licensed lessor to
   13         submit an annual report containing specific
   14         information to the department; requiring a licensed
   15         lessor to report any changes on a quarterly basis;
   16         requiring that specified fees be assessed against
   17         manufacturers, lessors, and operators; requiring a
   18         licensed manufacturer to provide a signed affidavit
   19         affirming certain information; providing that certain
   20         manufacturers, lessors, and operators who do not have
   21         a license are subject to administrative penalties;
   22         requiring the department to adopt rules; specifying
   23         who has standing to bring a cause of action related to
   24         preview games or machines; providing criminal
   25         penalties; providing an effective date.
   26          
   27  Be It Enacted by the Legislature of the State of Florida:
   28  
   29         Section 1. Section 546.15, Florida Statutes, is created to
   30  read:
   31         546.15 Preview games or machines.—
   32         (1) As used in this section, the term:
   33         (a) “Department” means the Department of Business and
   34  Professional Regulation.
   35         (b) “Lessor” means a person who leases a preview game or
   36  machine to an operator.
   37         (c) “Manufacturer” means a person who creates preview game
   38  or machine equipment and software.
   39         (d) “Operator” means a person registered to operate a
   40  preview game or machine.
   41         (e) “Person” has the same meaning as in s. 605.0102.
   42         (f) “Preview game or machine” means a game or machine that
   43  is operated with no material element of chance inherent in the
   44  game or machine, as defined in s. 546.10; does not require an
   45  application of skill; and has a predetermined outcome that a
   46  person does not control but which can be reviewed before the
   47  game being played.
   48         (2) The department is responsible for the regulation of
   49  preview games or machines; the licensure for lessors,
   50  manufacturers, and operators of preview games or machines; and
   51  the occupational licensure of persons involved in manufacturing,
   52  leasing, and operating preview games and machines.
   53         (3) An applicant for licensure as a lessor must meet all of
   54  the following requirements:
   55         (a) Be registered in this state for the past 5 years to
   56  conduct business as a lessor of amusement games and machines as
   57  defined in s. 546.10.
   58         (b) Hold a Florida sales tax certificate and be current on
   59  any sales tax payments.
   60         (c) Have no felony convictions within the past 15 years.
   61         (d) Submit fingerprints for any individual who owns more
   62  than 5 percent of the business.
   63         (4) An applicant for licensure as a manufacturer must meet
   64  all of the following requirements:
   65         (a) Hold a Florida sales tax certificate and be current on
   66  any sales tax payments.
   67         (b) Have no felony convictions within the past 15 years.
   68         (c) Submit fingerprints for any individual who owns more
   69  than 5 percent of the business.
   70         (5) An applicant for licensure as an operator must meet all
   71  of the following requirements:
   72         (a) Hold a Florida sales tax certificate and be current on
   73  any sales tax payments.
   74         (b) Have no felony convictions within the past 15 years.
   75         (c) Submit fingerprints for any individual who owns more
   76  than 5 percent of the business.
   77         (d)Have an alcoholic beverage license that allows for
   78  consumption on the premises either:
   79         1. Under s. 561.20, s. 563.02, or s. 564.02;
   80         2. As a truck stop as defined in s. 546.10(3)(h); or
   81         3. As a caterer at a horse or dog racetrack or jai alai
   82  fronton under s. 565.02(5).
   83         (6) An operator may only operate a preview game or machine
   84  that is leased from a licensed lessor.
   85         (7) The maximum number of preview games or machines that an
   86  operator may have in use is:
   87         (a)Ten games at an organization that is exempt from
   88  federal income taxation pursuant to 26 U.S.C s. 501(c)(3), (4),
   89  (7), (8), (10), or (19);
   90         (b) Five games at a location that has an alcoholic beverage
   91  license that allows consumption on the premises under s. 561.20;
   92         (c)Five games at a truck stop, as defined in s.
   93  546.10(3)(h); and
   94         (d)Three games at a location that has an alcoholic
   95  beverage license that allows consumption on the premises under
   96  s. 563.02 or s. 564.02.
   97         (8) A licensed lessor of a preview game or machine shall
   98  submit an annual report to the department listing the number of
   99  games or machines in operation at each operator location. The
  100  licensed lessor shall report any changes on a quarterly basis.
  101         (9) Annual licensing and regulatory fees shall be assessed
  102  against the manufacturer, the lessor, the operator, and each
  103  individual preview game or machine in operation. The annual
  104  regulatory fee shall be paid to the department. The annual
  105  license fee is:
  106         (a) Ten thousand dollars for a manufacturer.
  107         (b) Five thousand dollars for a lessor.
  108         (c)1. Five hundred dollars for each location of an operator
  109  which contains a preview game or machine; and
  110         2. One hundred twenty-five dollars for each individual
  111  preview game or machine in use at such location.
  112         (10) A licensed manufacturer of a preview game or machine
  113  shall provide a signed affidavit affirming that the game or
  114  machine meets all the requirements of state law and that the
  115  game or machine is protected from manipulation or tampering that
  116  could affect the random probabilities of winning plays.
  117         (11) A manufacturer, lessor, or operator that manufactures,
  118  leases, or operates a preview game or machine without a proper
  119  license is subject to administrative penalties set by the
  120  department, including, but not limited to, the assessment of a
  121  fine or the revocation of their license.
  122         (12) The department shall adopt all rules, pursuant to the
  123  provisions of ss. 120.536(1) and 120.54, necessary to implement,
  124  administer, and regulate preview games or machines as authorized
  125  in this section.
  126         (13) Notwithstanding any other provision of law, an action
  127  to enjoin operation of any game or machine pursuant to or for an
  128  alleged violation of this section or chapter 849 may be brought
  129  only by:
  130         (a)The Attorney General, the state attorney for the
  131  circuit in which the game or machine is located, a federally
  132  recognized tribal government possessing sovereign powers and
  133  rights of self-governance which is a party to a compact with the
  134  state, or in the case of an alleged violation of statutes that
  135  it is charged with enforcing, the Department of Agriculture and
  136  Consumer Services or department; or
  137         (b) A substantially affected person who is a resident of
  138  the county where the place of business operating the game or
  139  machine is located, or any substantially affected person who has
  140  a business or residence within 5 miles of the place of business
  141  operating the game or machine.
  142         (14) In addition to other civil, administrative, and
  143  criminal sanctions, a person who violates this section commits a
  144  misdemeanor of the second degree, punishable as provided in s.
  145  775.082 or s. 775.083. A person convicted of violating this
  146  section a second time commits a misdemeanor of the first degree,
  147  punishable as provided in s. 775.082 or s. 775.083. A person who
  148  violates this section after having been twice convicted is
  149  deemed a common offender and commits a felony of the third
  150  degree, punishable as provided in s. 775.082, s. 775.083, or s.
  151  775.084.
  152         Section 2. This act shall take effect October 1, 2018.