Florida Senate - 2018                        COMMITTEE AMENDMENT
       Bill No. SB 840
       
       
       
       
       
       
                                Ì4392721Î439272                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                   Comm: WD            .                                
                  01/17/2018           .                                
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       The Committee on Regulated Industries (Steube) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Section 546.13, Florida Statutes, is created to
    6  read:
    7         546.13 Fantasy contests and fantasy contest operators.—
    8         (1) DEFINITIONS.—As used in this section, the term:
    9         (a)“Entry fee” means cash or a cash equivalent that is
   10  required to be paid by a participant in order to participate in
   11  a fantasy contest.
   12         (b)“Fantasy contest” means a fantasy or simulated game or
   13  contest in which:
   14         1.The value of all prizes and awards offered to winning
   15  participants is established and made known to the participants
   16  in advance of the contest;
   17         2.All winning outcomes reflect the relative knowledge and
   18  skill of the participants and are determined predominantly by
   19  accumulated statistical results of the performance of
   20  individuals, including athletes in the case of sporting events;
   21         3.No winning outcome is based on the score, point spread,
   22  or any performance or performances of any single actual team or
   23  combination of such teams, solely on any single performance of
   24  an individual athlete or player in any single actual event, or
   25  on the performances of participants in collegiate, high school,
   26  or youth sporting events.
   27         (c)“Fantasy contest operator” means a person or an entity,
   28  including any employee or agent, that offers or conducts a
   29  fantasy contest with an entry fee for a cash prize or award and
   30  that is not a participant in the fantasy contest.
   31         (2)EXEMPTIONS.—The Department of Business and Professional
   32  Regulation may not regulate and the offenses established in s.
   33  849.01, s. 849.08, s. 849.09, s. 849.11, s. 849.14, and s.
   34  849.25 do not include or apply to a fantasy contest operated or
   35  conducted by a:
   36         (a) Fantasy contest operator.
   37         (b) Natural person who is a participant in the fantasy
   38  contest, serves as the commissioner of not more than 10 fantasy
   39  contests in a calendar year, and distributes all entry fees for
   40  the fantasy contest as prizes or awards to the participants in
   41  that fantasy contest.
   42         Section 2. Subsection (11) of section 550.002, Florida
   43  Statutes, is amended to read:
   44         550.002 Definitions.—As used in this chapter, the term:
   45         (11) “Full schedule of live racing or games” means:,
   46         (a) For a greyhound or jai alai permitholder, the conduct
   47  of a combination of at least 100 live evening or matinee
   48  performances during the preceding year.;
   49         (b) For a permitholder who has a converted permit or filed
   50  an application on or before June 1, 1990, for a converted
   51  permit, the conduct of a combination of at least 100 live
   52  evening and matinee wagering performances during either of the 2
   53  preceding years.;
   54         (c) For a jai alai permitholder who does not operate slot
   55  machines in its pari-mutuel facility, who has conducted at least
   56  100 live performances per year for at least 10 years after
   57  December 31, 1992, and whose handle on live jai alai games
   58  conducted at its pari-mutuel facility has been less than $4
   59  million per state fiscal year for at least 2 consecutive years
   60  after June 30, 1992, the conduct of a combination of at least 40
   61  live evening or matinee performances during the preceding year.;
   62         (d) For a jai alai permitholder who operates slot machines
   63  in its pari-mutuel facility, the conduct of a combination of at
   64  least 150 performances during the preceding year.;
   65         (e) For a harness permitholder, the conduct of at least 100
   66  live regular wagering performances during the preceding year.;
   67         (f) For a quarter horse permitholder using at its own
   68  facility, unless an alternative schedule of at least 20 live
   69  regular wagering performances is agreed upon by the permitholder
   70  and either the Florida Quarter Horse Racing Association or an
   71  alternate representative organization designated pursuant to s.
   72  550.3342 the horsemen’s association representing the majority of
   73  the quarter horse owners and trainers at the facility and filed
   74  with the division along with its annual date application, in the
   75  2010-2011 fiscal year, the conduct of at least 20 regular
   76  wagering performances, in the 2011-2012 and 2012-2013 fiscal
   77  years, the conduct of at least 30 live regular wagering
   78  performances, and for every fiscal year after the 2012-2013
   79  fiscal year, the conduct of at least 40 live regular wagering
   80  performances.;
   81         (g) For a quarter horse permitholder leasing another
   82  licensed racetrack, the conduct of 160 events at the leased
   83  facility.; and
   84         (h) For a thoroughbred permitholder, the conduct of at
   85  least 40 live regular wagering performances during the preceding
   86  year.
   87         (i) For a permitholder that which is restricted by statute
   88  to certain operating periods within the year when other members
   89  of its same class of permit are authorized to operate throughout
   90  the year, the specified number of live performances which
   91  constitute a full schedule of live racing or games is shall be
   92  adjusted pro rata in accordance with the relationship between
   93  its authorized operating period and the full calendar year. and
   94  The resulting specified number of live performances shall
   95  constitute the full schedule of live games for such permitholder
   96  and all other permitholders of the same class within 100 air
   97  miles of such permitholder. A live performance must consist of
   98  no fewer than eight races or games conducted live for each of a
   99  minimum of three performances each week at the permitholder’s
  100  licensed facility under a single admission charge.
  101         Section 3. Subsections (1) and (3) of section 550.01215,
  102  Florida Statutes, are amended to read:
  103         550.01215 License application; periods of operation; bond,
  104  conversion of permit.—
  105         (1) Each permitholder shall annually, during the period
  106  between December 15 and January 4, file in writing with the
  107  division its application for an operating a license to conduct
  108  pari-mutuel wagering during the next state fiscal year,
  109  including intertrack and simulcast race wagering for greyhound
  110  racing permitholders and thoroughbred horse racing permitholders
  111  that do not to conduct live performances during the next state
  112  fiscal year. Each application for live performances must shall
  113  specify the number, dates, and starting times of all live
  114  performances that which the permitholder intends to conduct. It
  115  must shall also specify which performances will be conducted as
  116  charity or scholarship performances.
  117         (a)In addition, Each application for an operating a
  118  license also must shall include:,
  119         1. For each permitholder, whether the permitholder intends
  120  to accept wagers on intertrack or simulcast events.
  121         2.For each permitholder that elects which elects to
  122  operate a cardroom, the dates and periods of operation the
  123  permitholder intends to operate the cardroom. or,
  124         3. For each thoroughbred racing permitholder that which
  125  elects to receive or rebroadcast out-of-state races after 7
  126  p.m., the dates for all performances which the permitholder
  127  intends to conduct.
  128         (b)A greyhound racing permitholder that conducted a full
  129  schedule of live racing for a period of at least 10 consecutive
  130  state fiscal years after the 1996-1997 state fiscal year, or
  131  that converted its permit to a permit to conduct greyhound
  132  racing after the 1996-1997 state fiscal year, may specify in its
  133  application for an operating license that it does not intend to
  134  conduct live racing, or that it intends to conduct less than a
  135  full schedule of live racing, in the next state fiscal year. A
  136  greyhound racing permitholder may retain its permit; is a pari
  137  mutuel facility as defined in s. 550.002(23); if such
  138  permitholder has been issued a slot machine license, the
  139  facility where such permit is located remains an eligible
  140  facility as defined in s. 551.102(4), continues to be eligible
  141  for a slot machine license, and is exempt from ss. 551.104(3)
  142  and (4)(c)1. and 551.114(2) and (4); is eligible, but not
  143  required, to be a guest track for purposes of intertrack
  144  wagering and simulcasting pursuant to ss. 550.3551, 550.615, and
  145  550.6305; and, if such permitholder has been issued a cardroom
  146  license, remains eligible for a cardroom license notwithstanding
  147  any requirement in s. 849.086 for the conduct of live racing. A
  148  greyhound racing permitholder may receive an operating license
  149  to conduct pari-mutuel wagering activities at another
  150  permitholder’s greyhound racing facility pursuant to s. 550.475.
  151         (c)1.A thoroughbred horse racing permitholder that has
  152  conducted live racing for at least 5 years irrevocably may elect
  153  not to conduct live racing if the election is made within 30
  154  days after the effective date of this act. A thoroughbred horse
  155  racing permitholder that makes such election may retain such
  156  permit, must specify in future applications for an operating
  157  license that it does not intend to conduct live racing, and is a
  158  pari-mutuel facility as defined in s. 550.002(23).
  159         2.If a thoroughbred horse racing permitholder makes such
  160  election and if such permitholder holds a slot machine license
  161  when such election is made, the facility where such permit is
  162  located:
  163         a.Remains an eligible facility pursuant to s. 551.102(4),
  164  and continues to be eligible for a slot machine license;
  165         b.Is exempt from ss. 550.5251, 551.104(3) and (4)(c)1.,
  166  and 551.114(2) and (4);
  167         c.Is eligible, but not required, to be a guest track for
  168  purposes of intertrack wagering and simulcasting; and
  169         d.Remains eligible for a cardroom license, notwithstanding
  170  any requirement in s. 849.086 for the conduct of live racing.
  171         3.A thoroughbred horse racing permitholder that makes such
  172  election shall comply with all contracts regarding contributions
  173  by such permitholder to thoroughbred horse purse supplements or
  174  breeders’ awards entered into before the effective date of this
  175  act pursuant to s. 551.104(10)(a). At the time of such election,
  176  such permitholder shall file with the division an irrevocable
  177  consent that such contributions shall be allowed to be used for
  178  purses and awards on live races at other thoroughbred horse
  179  racing facilities in this state. This subparagraph and s.
  180  551.104(10)(a) do not apply after December 31, 2020, to a
  181  thoroughbred horse racing permitholder that made such election.
  182         (d) A harness horse racing permitholder or a quarter horse
  183  racing permitholder that has conducted live racing for at least
  184  5 years irrevocably may elect not to conduct live racing if the
  185  election is made within 30 days after the effective date of this
  186  act. A permitholder that makes such election may retain its
  187  permit; is a pari-mutuel facility as defined in s. 550.002(23);
  188  if such permitholder has been issued a slot machine license, the
  189  facility where such permit is located remains an eligible
  190  facility as defined in s. 551.102(4), continues to be eligible
  191  for a slot machine license, and is exempt from ss. 551.104(3)
  192  and (4)(c)1. and 551.114(2) and (4); is eligible, but not
  193  required, to be a guest track and, if the permitholder is a
  194  harness horse racing permitholder, to be a host track for
  195  purposes of intertrack wagering and simulcasting pursuant to ss.
  196  550.3551, 550.615, 550.625, and 550.6305; and, if such
  197  permitholder has been issued a cardroom license, remains
  198  eligible for a cardroom license notwithstanding any requirement
  199  in s. 849.086 to conduct live racing performances.
  200         (e) Permitholders may shall be entitled to amend their
  201  applications through February 28.
  202         (3) The division shall issue each license no later than
  203  March 15. Each permitholder shall operate all performances at
  204  the date and time specified on its license. The division shall
  205  have the authority to approve minor changes in racing dates
  206  after a license has been issued. The division may approve
  207  changes in racing dates after a license has been issued when
  208  there is no objection from any operating permitholder located
  209  within 50 miles of the permitholder requesting the changes in
  210  operating dates. In the event of an objection, the division
  211  shall approve or disapprove the change in operating dates based
  212  upon the impact on operating permitholders located within 50
  213  miles of the permitholder requesting the change in operating
  214  dates. In making the determination to change racing dates, the
  215  division shall take into consideration the impact of such
  216  changes on state revenues. Notwithstanding any other provision
  217  of law, and for the 2018-2019 fiscal year only, the division may
  218  approve changes in racing dates for permitholders if the request
  219  for such changes is received before May 31, 2018.
  220         Section 4. Section 550.3342, Florida Statutes, is created
  221  to read:
  222         550.3342 Requirements for electing an alternative quarter
  223  horse representative organization.—
  224         (1) In the event more than 50 percent of the total horsemen
  225  who are participating in, or have participated in, quarter horse
  226  racing registered with the American Quarter Horse Association
  227  wish to designate a new representative organization, the
  228  organization:
  229         (a) Must be recognized by the American Quarter Horse
  230  Association as the state racing affiliate.
  231         (b) May not be affiliated with or under the control of any
  232  licensee.
  233         (c) Must be formed under guidelines approved by the
  234  division.
  235         (d) Must be elected by a majority of the horsemen who are
  236  participating in, or have participated in, quarter horse racing
  237  registered with the American Quarter Horse Association at
  238  Florida quarter horse racetracks that follow the American
  239  Quarter Horse Association’s quarter horse racing guidelines.
  240         Section 5. Paragraph (c) of subsection (4) and paragraph
  241  (a) of subsection (10) of section 551.104, Florida Statutes, are
  242  amended to read:
  243         551.104 License to conduct slot machine gaming.—
  244         (4) As a condition of licensure and to maintain continued
  245  authority for the conduct of slot machine gaming, a the slot
  246  machine licensee shall:
  247         (c)1. Conduct no less fewer than a full schedule of live
  248  racing or games as defined in s. 550.002(11), unless conducting
  249  less than a full schedule of live racing or games pursuant to s.
  250  550.01215(1)(b) or (c). A permitholder’s responsibility to
  251  conduct a full schedule such number of live races or games, as
  252  defined in s. 550.002(11), shall be reduced by the number of
  253  races or games that could not be conducted due to the direct
  254  result of fire, war, hurricane, or other disaster or event
  255  beyond the control of the permitholder. A permitholder may
  256  conduct live races or games at another pari-mutuel facility
  257  pursuant to s. 550.475 if such permitholder has operated its
  258  live races or games by lease for at least 5 consecutive years
  259  immediately prior to the permitholder’s application for a slot
  260  machine license.
  261         2. If not licensed to conduct a full schedule of live
  262  racing or games, as defined in s. 550.002(11), pursuant to s.
  263  550.01215(1)(b) or (c), remit for the payment of purses and
  264  awards on live races an amount equal to the lesser of $2 million
  265  or 3 percent of its slot machine revenues from the previous
  266  state fiscal year to a slot machine licensee licensed to conduct
  267  not fewer than 160 days of thoroughbred racing. A slot machine
  268  licensee receiving funds under this subparagraph shall remit,
  269  within 10 days after receipt, 10 percent of those funds to the
  270  Florida Thoroughbred Breeders’ Association, Inc., for the
  271  payment of breeders’, stallion, and special racing awards,
  272  subject to the fee authorized in s. 550.2625(3). If no slot
  273  machine licensee is licensed for at least 160 days of live
  274  thoroughbred racing, no payments for purses are required. A slot
  275  machine licensee that conducts no live racing and is making
  276  purse and awards supplement payments due under agreements
  277  entered pursuant to paragraph (10)(a) prior to the effective
  278  date of this act may offset the total amount paid under such
  279  agreements for purses and awards on or after July 1, 2017,
  280  against any amount due under this subparagraph until the amount
  281  paid and the amount due equal zero.
  282         (10)(a)1. No slot machine license or renewal thereof shall
  283  be issued to an applicant holding a permit under chapter 550 to
  284  conduct pari-mutuel wagering meets of thoroughbred racing unless
  285  the applicant has on file with the division a binding written
  286  agreement between the applicant and the Florida Horsemen’s
  287  Benevolent and Protective Association, Inc., governing the
  288  payment of purses on live thoroughbred races conducted at the
  289  licensee’s pari-mutuel facility. In addition, no slot machine
  290  license or renewal thereof shall be issued to such an applicant
  291  unless the applicant has on file with the division a binding
  292  written agreement between the applicant and the Florida
  293  Thoroughbred Breeders’ Association, Inc., governing the payment
  294  of breeders’, stallion, and special racing awards on live
  295  thoroughbred races conducted at the licensee’s pari-mutuel
  296  facility. The agreement governing purses and the agreement
  297  governing awards may direct the payment of such purses and
  298  awards from revenues generated by any wagering or gaming the
  299  applicant is authorized to conduct under Florida law. All purses
  300  and awards shall be subject to the terms of chapter 550. All
  301  sums for breeders’, stallion, and special racing awards shall be
  302  remitted monthly to the Florida Thoroughbred Breeders’
  303  Association, Inc., for the payment of awards subject to the
  304  administrative fee authorized in s. 550.2625(3).
  305         2. No slot machine license or renewal thereof shall be
  306  issued by the division to an applicant holding a permit under
  307  chapter 550 to conduct pari-mutuel wagering meets of quarter
  308  horse racing unless the applicant includes with their
  309  application has on file with the division a binding written
  310  agreement governing the payment of purses on live quarter horse
  311  races to be conducted at the applicant’s pari-mutuel facility
  312  for the licensure period applied for. Such agreement must be
  313  between either the applicant and the Florida Quarter Horse
  314  Racing Association or the applicant and an alternative
  315  representative organization designated pursuant to s. 550.3342.
  316  Such agreement the association representing a majority of the
  317  horse owners and trainers at the applicant’s eligible facility,
  318  governing the payment of purses on live quarter horse races
  319  conducted at the licensee’s pari-mutuel facility. The agreement
  320  governing purses may direct the payment of such purses from
  321  revenues generated by any wagering or gaming the applicant is
  322  authorized to conduct under Florida law. All purses are shall be
  323  subject to the terms of chapter 550.
  324         Section 6. Subsections (1), (2), and (4) of section
  325  551.106, Florida Statutes, are amended to read:
  326         551.106 License fee; tax rate; penalties.—
  327         (1) LICENSE FEE.—
  328         (a) Upon submission of the initial application for a slot
  329  machine license, and annually thereafter, on the anniversary
  330  date of the issuance of the initial license, the licensee must
  331  pay to the division a nonrefundable license fee of $3 million
  332  for the succeeding 12 months of licensure. In the 2010-2011
  333  fiscal year, the licensee must pay the division a nonrefundable
  334  license fee of $2.5 million for the succeeding 12 months of
  335  licensure. In the 2011-2012 fiscal year and for every fiscal
  336  year thereafter, the licensee must pay the division a
  337  nonrefundable license fee of $2 million for the succeeding 12
  338  months of licensure. The license fee must shall be deposited
  339  into the Pari-mutuel Wagering Trust Fund of the Department of
  340  Business and Professional Regulation to be used by the division
  341  and the Department of Law Enforcement for investigations,
  342  regulation of slot machine gaming, and enforcement of slot
  343  machine gaming provisions under this chapter. These payments
  344  must shall be accounted for separately from taxes or fees paid
  345  pursuant to the provisions of chapter 550.
  346         (b) Prior to January 1, 2007, the division shall evaluate
  347  the license fee and shall make recommendations to the President
  348  of the Senate and the Speaker of the House of Representatives
  349  regarding the optimum level of slot machine license fees in
  350  order to adequately support the slot machine regulatory program.
  351         (2) TAX ON SLOT MACHINE REVENUES.—
  352         (a)1. The tax rate on slot machine revenues at each
  353  facility is shall be 35 percent. Effective January 1, 2019, the
  354  tax rate on slot machine revenues at each facility is 30
  355  percent. Effective July 1, 2020, the tax rate on slot machine
  356  revenues at each facility is 25 percent.
  357         2.a. If, during any state fiscal year, the aggregate amount
  358  of tax paid to the state by all slot machine licensees in
  359  Broward and Miami-Dade Counties is less than the aggregate
  360  amount of tax paid to the state by all slot machine licensees in
  361  those counties in the 2017-2018 2008-2009 fiscal year, each slot
  362  machine licensee shall pay to the state within 45 days after the
  363  end of the state fiscal year a surcharge equal to its pro rata
  364  share of an amount equal to the difference between the aggregate
  365  amount of tax paid to the state by all slot machine licensees in
  366  the 2008-2009 fiscal year and the amount of tax paid during the
  367  fiscal year.
  368         b. The amount of the surcharge to be paid by each such
  369  licensee must be calculated by dividing the aggregate amount of
  370  slot machine taxes paid to the state by all such slot machine
  371  licensees in the 2017-2018 fiscal year by the aggregate amount
  372  of slot machine taxes paid by all such licensees during the
  373  applicable state fiscal year, multiplying the result by the
  374  amount of slot machine taxes paid by the licensee during the
  375  applicable state fiscal year, and then subtracting from that
  376  product the amount of slot machine taxes paid by the licensee
  377  during the applicable state fiscal year. However, the sum of the
  378  taxes paid by a licensee pursuant to subparagraph 1. and any
  379  surcharge due from the licensee may not exceed 35 percent of the
  380  slot machine revenue of that licensee in the applicable state
  381  fiscal year Each licensee’s pro rata share shall be an amount
  382  determined by dividing the number 1 by the number of facilities
  383  licensed to operate slot machines during the applicable fiscal
  384  year, regardless of whether the facility is operating such
  385  machines.
  386         (b) The slot machine revenue tax imposed by this section
  387  must shall be paid to the division for deposit into the Pari
  388  mutuel Wagering Trust Fund for immediate transfer by the Chief
  389  Financial Officer for deposit into the Educational Enhancement
  390  Trust Fund of the Department of Education. Any interest earnings
  391  on the tax revenues must shall also be transferred to the
  392  Educational Enhancement Trust Fund.
  393         (c)1. Funds transferred to the Educational Enhancement
  394  Trust Fund under paragraph (b) must shall be used to supplement
  395  public education funding statewide.
  396         2. If necessary to comply with any covenant established
  397  pursuant to s. 1013.68(4), s. 1013.70(1), or s. 1013.737(3),
  398  funds transferred to the Educational Enhancement Trust Fund
  399  under paragraph (b) must shall first be available to pay debt
  400  service on lottery bonds issued to fund school construction in
  401  the event lottery revenues are insufficient for such purpose or
  402  to satisfy debt service reserve requirements established in
  403  connection with lottery bonds. Moneys available pursuant to this
  404  subparagraph are subject to annual appropriation by the
  405  Legislature.
  406         (4) TO PAY TAX; PENALTIES.—A slot machine licensee who
  407  fails to make tax and any applicable surcharge payments as
  408  required under this section is subject to an administrative
  409  penalty of up to $10,000 for each day the tax payment is not
  410  remitted. All administrative penalties imposed and collected
  411  must shall be deposited into the Pari-mutuel Wagering Trust Fund
  412  of the Department of Business and Professional Regulation. If
  413  any slot machine licensee fails to pay penalties imposed by
  414  order of the division under this subsection, the division may
  415  deny, suspend, revoke, or refuse to renew the license of the
  416  permitholder or slot machine licensee.
  417         Section 7. Present subsections (9) through (17) of section
  418  849.086, Florida Statutes, are redesignated as subsections (10)
  419  through (18), respectively, and a new subsection (9) is added to
  420  that section, subsections (1) and (2) of that section are
  421  amended, paragraph (g) is added to subsection (4) of that
  422  section, and paragraph (b) of subsection (5), paragraph (c) of
  423  subsection (7), paragraph (a) of subsection (8), present
  424  subsection (12), and paragraphs (d) and (h) of present
  425  subsection (13) are amended, to read:
  426         849.086 Cardrooms authorized.—
  427         (1) LEGISLATIVE INTENT.—It is the intent of the Legislature
  428  to provide additional entertainment choices for the residents of
  429  and visitors to the state, promote tourism in the state, provide
  430  revenues to support the continuation of live pari-mutuel
  431  activity, and provide additional state revenues through the
  432  authorization of the playing of certain games in the state at
  433  facilities known as cardrooms which are to be located at
  434  licensed pari-mutuel facilities. To ensure the public confidence
  435  in the integrity of authorized cardroom operations, this act is
  436  designed to strictly regulate the facilities, persons, and
  437  procedures related to cardroom operations. Furthermore, the
  438  Legislature finds that authorized games of poker and dominoes as
  439  herein defined are considered to be pari-mutuel style games and
  440  not casino gaming because the participants play against each
  441  other instead of against the house.
  442         (2) DEFINITIONS.—As used in this section:
  443         (a) “Authorized game” means a game or series of games of
  444  poker or dominoes which are played in conformance with this
  445  section, including designated player games that are played in a
  446  manner consistent with the rules and requirements specified in
  447  the 1974 edition of Hoyle’s Modern Encyclopedia of Card Games:
  448  Rules of All the Basic Games and Popular Variations and
  449  including three card poker a nonbanking manner.
  450         (b) “Banking game” means a game in which the house is a
  451  participant in the game, taking on players, paying winners, and
  452  collecting from losers or in which the cardroom establishes a
  453  bank against which participants play. A designated player game
  454  is not a banking game.
  455         (c) “Cardroom” means a facility where authorized games are
  456  played for money or anything of value and to which the public is
  457  invited to participate in such games and charged a fee for
  458  participation by the operator of such facility. Authorized games
  459  and cardrooms do not constitute casino gaming operations if
  460  conducted at an eligible facility.
  461         (d) “Cardroom management company” means any individual not
  462  an employee of the cardroom operator, any proprietorship,
  463  partnership, corporation, or other entity that enters into an
  464  agreement with a cardroom operator to manage, operate, or
  465  otherwise control the daily operation of a cardroom.
  466         (e) “Cardroom distributor” means any business that
  467  distributes cardroom paraphernalia such as card tables, betting
  468  chips, chip holders, dominoes, dominoes tables, drop boxes,
  469  banking supplies, playing cards, card shufflers, and other
  470  associated equipment to authorized cardrooms.
  471         (f) “Cardroom operator” means a licensed pari-mutuel
  472  permitholder that which holds a valid permit and license issued
  473  by the division pursuant to chapter 550 and which also holds a
  474  valid cardroom license issued by the division pursuant to this
  475  section which authorizes such person to operate a cardroom and
  476  to conduct authorized games in such cardroom.
  477         (g)“Designated player” means the player identified for
  478  each game by a button that rotates clockwise before each game
  479  begins as the player in the dealer position and seated at a
  480  traditional player position in a designated player game who pays
  481  winning players and collects from losing players.
  482         (h)“Designated player game” means a game in which the
  483  players compare their cards only to the cards of the designated
  484  player or to a combination of cards held by the designated
  485  player and cards common and available for play by all players.
  486         (i)(g) “Division” means the Division of Pari-mutuel
  487  Wagering of the Department of Business and Professional
  488  Regulation.
  489         (j)(h) “Dominoes” means a game of dominoes typically played
  490  with a set of 28 flat rectangular blocks, called “bones,” which
  491  are marked on one side and divided into two equal parts, with
  492  zero to six dots, called “pips,” in each part. The term also
  493  includes larger sets of blocks that contain a correspondingly
  494  higher number of pips. The term also means the set of blocks
  495  used to play the game.
  496         (k)(i) “Gross receipts” means the total amount of money
  497  received by a cardroom from any person for participation in
  498  authorized games.
  499         (l)(j) “House” means the cardroom operator and all
  500  employees of the cardroom operator.
  501         (m)(k) “Net proceeds” means the total amount of gross
  502  receipts received by a cardroom operator from cardroom
  503  operations less direct operating expenses related to cardroom
  504  operations, including labor costs, admission taxes only if a
  505  separate admission fee is charged for entry to the cardroom
  506  facility, gross receipts taxes imposed on cardroom operators by
  507  this section, the annual cardroom license fees imposed by this
  508  section on each table operated at a cardroom, and reasonable
  509  promotional costs excluding officer and director compensation,
  510  interest on capital debt, legal fees, real estate taxes, bad
  511  debts, contributions or donations, or overhead and depreciation
  512  expenses not directly related to the operation of the cardrooms.
  513         (n)(l) “Rake” means a set fee or percentage of the pot
  514  assessed by a cardroom operator for providing the services of a
  515  dealer, table, or location for playing the authorized game.
  516         (o)(m) “Tournament” means a series of games that have more
  517  than one betting round involving one or more tables and where
  518  the winners or others receive a prize or cash award.
  519         (4) AUTHORITY OF DIVISION.—The Division of Pari-mutuel
  520  Wagering of the Department of Business and Professional
  521  Regulation shall administer this section and regulate the
  522  operation of cardrooms under this section and the rules adopted
  523  pursuant thereto, and is hereby authorized to:
  524         (g) Establish a reasonable period to respond to requests
  525  from a licensed cardroom; provided however, the division has a
  526  maximum of 45 days to approve:
  527         1. A cardroom’s internal controls or provide the cardroom
  528  with a list of deficiencies as to the internal controls.
  529         2. Rules for a new authorized game submitted by a licensed
  530  cardroom or provide the cardroom with a list of deficiencies as
  531  to those rules.
  532  
  533  No later than 10 days after the submission of revised internal
  534  controls or revised rules addressing the deficiencies identified
  535  by the division, the division must review and approve or reject
  536  the revised internal controls or revised rules.
  537         (5) LICENSE REQUIRED; APPLICATION; FEES.—No person may
  538  operate a cardroom in this state unless such person holds a
  539  valid cardroom license issued pursuant to this section.
  540         (b) After the initial cardroom license is granted, the
  541  application for the annual license renewal shall be made in
  542  conjunction with the applicant’s annual application for its
  543  pari-mutuel license. If a permitholder has operated a cardroom
  544  during any of the 3 previous fiscal years and fails to include a
  545  renewal request for the operation of the cardroom in its annual
  546  application for license renewal, the permitholder may amend its
  547  annual application to include operation of the cardroom. In
  548  order for a cardroom license to be renewed the applicant must
  549  have requested, as part of its pari-mutuel annual license
  550  application, to conduct at least 90 percent of the total number
  551  of live performances conducted by such permitholder during
  552  either the state fiscal year in which its initial cardroom
  553  license was issued or the state fiscal year immediately prior
  554  thereto if the permitholder ran at least a full schedule of live
  555  racing or games in the prior year. If the application is for a
  556  harness permitholder cardroom, the applicant must have requested
  557  authorization to conduct a minimum of 140 live performances
  558  during the state fiscal year immediately prior thereto. If more
  559  than one permitholder is operating at a facility, each
  560  permitholder must have applied for a license to conduct a full
  561  schedule of live racing.
  562         (7) CONDITIONS FOR OPERATING A CARDROOM.—
  563         (c) A cardroom operator must at all times employ and
  564  provide a nonplaying live dealer at for each table on which
  565  authorized card games which traditionally use a dealer are
  566  conducted at the cardroom. Such dealers may not have a
  567  participatory interest in any game other than the dealing of
  568  cards and may not have an interest in the outcome of the game.
  569  The providing of such dealers by a licensee does not constitute
  570  the conducting of a banking game by the cardroom operator.
  571         (8) METHOD OF WAGERS; LIMITATION.—
  572         (a) No Wagering may not be conducted using money or other
  573  negotiable currency. Games may only be played utilizing a
  574  wagering system whereby all players’ money is first converted by
  575  the house to tokens or chips that may which shall be used for
  576  wagering only at that specific cardroom.
  577         (9)DESIGNATED PLAYER GAMES AUTHORIZED.—
  578         (a)A cardroom operator may offer designated player games
  579  consisting of players making wagers against the designated
  580  player. However, not more than 50 percent of the total licensed
  581  tables in a cardroom may offer designated player games. The
  582  designated player must be licensed pursuant to paragraph (6)(b).
  583  Employees of a designated player also must be licensed, and the
  584  designated player shall pay, in addition to the business
  585  occupational fee established pursuant to paragraph (6)(i), an
  586  employee occupational license fee that may not exceed $500 per
  587  employee for any 12-month period.
  588         (b)A cardroom operator may not serve as a designated
  589  player in any game. The cardroom operator may not have a
  590  financial interest in a designated player in any game. A
  591  cardroom operator may collect a rake in accordance with the rake
  592  structure posted at the table.
  593         (c)If there are multiple designated players at a table,
  594  the dealer button shall be rotated in a clockwise rotation after
  595  each hand.
  596         (d)A cardroom operator may not allow a designated player
  597  to pay an opposing player who holds a lower-ranked hand.
  598         (e)A designated player may not be required by the rules of
  599  a game or by the rules of a cardroom to cover more than 10 times
  600  the maximum wager for players participating in any one game.
  601         (f)The cardroom, or any cardroom licensee, may not
  602  contract with, or receive compensation other than a posted table
  603  rake from, any player to participate in any game to serve as a
  604  designated player.
  605         (13)(12) PROHIBITED ACTIVITIES.—
  606         (a) A No person licensed to operate a cardroom may not
  607  conduct any banking game or any game not specifically authorized
  608  by this section.
  609         (b) A No person who is younger than under 18 years of age
  610  may not be permitted to hold a cardroom or employee license, or
  611  to engage in any game conducted therein.
  612         (c) With the exception of mechanical card shufflers, No
  613  electronic or mechanical devices, except mechanical card
  614  shufflers, may not be used to conduct any authorized game in a
  615  cardroom.
  616         (d) No Cards, game components, or game implements may not
  617  be used in playing an authorized game unless they have such has
  618  been furnished or provided to the players by the cardroom
  619  operator.
  620         (14)(13) TAXES AND OTHER PAYMENTS.—
  621         (d)1. Each greyhound and jai alai permitholder that
  622  operates a cardroom facility shall use at least 4 percent of
  623  such permitholder’s cardroom monthly gross receipts to
  624  supplement greyhound purses and awards or jai alai prize money,
  625  respectively, during the permitholder’s next ensuing pari-mutuel
  626  meet.
  627         2. A cardroom license or renewal thereof may not be issued
  628  to a permitholder conducting less than a full schedule of live
  629  racing or games, as defined in s. 550.002(11), pursuant to s.
  630  550.01215(1)(b), (c), or (d) unless the applicant has on file
  631  with the division a binding written contract with a thoroughbred
  632  permitholder that is licensed to conduct live racing and that
  633  does not possess a slot machine license. This contract must
  634  provide that the permitholder will pay an amount equal to 4
  635  percent of its monthly cardroom gross receipts to the
  636  thoroughbred permitholder conducting the live racing for
  637  exclusive use as purses and awards during the current or ensuing
  638  live racing meet of the thoroughbred permitholder. A
  639  thoroughbred permitholder receiving funds under this
  640  subparagraph shall remit, within 10 days after receipt, 10
  641  percent of those funds to the Florida Thoroughbred Breeders’
  642  Association, Inc., for the payment of breeders’, stallion, and
  643  special racing awards, subject to the fee authorized in s.
  644  550.2625(3). If there is not a thoroughbred permitholder that
  645  does not possess a slot machine license, payments for purses are
  646  not required, and the cardroom licensee shall retain such funds
  647  for its use. Each thoroughbred and harness horse racing
  648  permitholder that operates a cardroom facility shall use at
  649  least 50 percent of such permitholder’s cardroom monthly net
  650  proceeds as follows: 47 percent to supplement purses and 3
  651  percent to supplement breeders’ awards during the permitholder’s
  652  next ensuing racing meet.
  653         3. A No cardroom license or renewal thereof may not shall
  654  be issued by the division to an applicant that holds holding a
  655  permit under chapter 550 to conduct pari-mutuel wagering meets
  656  of quarter horse racing and that conducts live racing unless the
  657  applicant includes with its application has on file with the
  658  division a binding written agreement governing the payment of
  659  purses on live quarter horse races to be conducted at the
  660  applicant’s pari-mutuel facility for the licensure period
  661  applied for. Such agreement must either be between the applicant
  662  and the Florida Quarter Horse Racing Association or the
  663  applicant and an alternative representative organization
  664  designated pursuant to s. 550.3342. Such agreement the
  665  association representing a majority of the horse owners and
  666  trainers at the applicant’s eligible facility, governing the
  667  payment of purses on live quarter horse races conducted at the
  668  licensee’s pari-mutuel facility. The agreement governing purses
  669  may direct the payment of such purses from revenues generated by
  670  any wagering or gaming the applicant is authorized to conduct
  671  under Florida law. All purses are shall be subject to the terms
  672  of chapter 550.
  673         (h) One-quarter of the moneys deposited into the Pari
  674  mutuel Wagering Trust Fund pursuant to paragraph (g) shall, by
  675  October 1 of each year, be distributed to the local government
  676  that approved the cardroom under subsection (17) (16); however,
  677  if two or more pari-mutuel racetracks are located within the
  678  same incorporated municipality, the cardroom funds shall be
  679  distributed to the municipality. If a pari-mutuel facility is
  680  situated in such a manner that it is located in more than one
  681  county, the site of the cardroom facility shall determine the
  682  location for purposes of disbursement of tax revenues under this
  683  paragraph. The division shall, by September 1 of each year,
  684  determine: the amount of taxes deposited into the Pari-mutuel
  685  Wagering Trust Fund pursuant to this section from each cardroom
  686  licensee; the location by county of each cardroom; whether the
  687  cardroom is located in the unincorporated area of the county or
  688  within an incorporated municipality; and, the total amount to be
  689  distributed to each eligible county and municipality.
  690         Section 8. The Division of Law Revision and Information is
  691  directed to replace the phrase “the effective date of this act”
  692  wherever it occurs in this act with the date this act becomes a
  693  law.
  694         Section 9. This act shall take effect upon becoming a law.
  695  
  696  ================= T I T L E  A M E N D M E N T ================
  697  And the title is amended as follows:
  698         Delete everything before the enacting clause
  699  and insert:
  700                        A bill to be entitled                      
  701         An act relating to gaming; creating s. 546.13, F.S.;
  702         defining terms; exempting a fantasy contest from
  703         certain regulations; amending s. 550.002, F.S.;
  704         providing that a quarter horse permitholder and an
  705         alternative representative organization may agree to
  706         an alternative schedule of performances; amending s.
  707         550.01215, F.S.; revising application requirements for
  708         a pari-mutuel operating license; authorizing a
  709         greyhound racing permitholder to specify certain
  710         intentions on its application; providing that a
  711         greyhound racing permitholder that has been issued a
  712         slot machine license remains an eligible facility,
  713         continues to be eligible for a slot machine license,
  714         is exempt from certain provisions of ch. 551, F.S., is
  715         eligible to be a guest track for certain purposes, and
  716         remains eligible for a cardroom license; authorizing a
  717         greyhound racing permitholder to receive an operating
  718         license to conduct pari-mutuel wagering activities at
  719         another permitholder’s greyhound racing facility;
  720         authorizing a thoroughbred horse racing permitholder
  721         to elect not to conduct live racing under certain
  722         circumstances; authorizing a thoroughbred horse racing
  723         permitholder that elects not to conduct live racing to
  724         retain its permit and requiring the permitholder to
  725         specify its intention not to conduct live racing in
  726         future applications and that it is a pari-mutuel
  727         facility; authorizing such thoroughbred horse racing
  728         permitholder’s facility to remain an eligible
  729         facility, to continue to be eligible for a slot
  730         machine license, to be exempt from certain provisions
  731         of chs. 550 and 551, F.S., to be eligible as a guest
  732         track for intertrack wagering and simulcasting, and to
  733         remain eligible for a cardroom license; requiring that
  734         such permitholder comply with all contracts regarding
  735         distributions to thoroughbred horse purse supplements
  736         or breeders’ awards entered into before a specified
  737         date; requiring, for a specified period, that such
  738         permitholder file with the division an irrevocable
  739         consent authorizing the use of certain contributions
  740         for specified purses and awards; authorizing harness
  741         horse and quarter horse racing permitholders to elect
  742         not to conduct live racing under certain
  743         circumstances; authorizing a permitholder that elects
  744         not to conduct live racing to retain its permit and
  745         remain a pari-mutuel facility; specifying that, if
  746         such permitholder has been issued a slot machine
  747         license, the permitholder’s facility remains an
  748         eligible facility, continues to be eligible for a slot
  749         machine license, is exempt from certain provisions of
  750         chs. 550 and 551, F.S., is eligible to be a guest
  751         track, and if the permitholder is a harness horse
  752         racing permitholder, a host track for intertrack
  753         wagering and simulcasting, and remains eligible for a
  754         cardroom license; authorizing a harness horse racing
  755         permitholder to be a host track for purposes of
  756         intertrack wagering and simulcasting; authorizing the
  757         division to approve a change in racing dates for a
  758         permitholder if the request for a change is received
  759         before a specified date and under certain
  760         circumstances; creating s. 550.3342, F.S.;
  761         establishing the requirements for electing an
  762         alternative quarter horse representative organization;
  763         amending s. 551.104, F.S.; revising conditions of
  764         licensure and conditions for maintaining authority to
  765         conduct slot machine gaming; amending s. 551.106,
  766         F.S.; deleting obsolete provisions; revising the tax
  767         rate on slot machine revenue effective on specified
  768         dates; providing a formula to calculate a surcharge
  769         amount; prohibiting the surcharge from exceeding a
  770         certain amount; amending s. 849.086, F.S.; revising
  771         legislative intent; revising definitions; authorizing
  772         the division to establish a reasonable period to
  773         respond to certain requests from a licensed cardroom;
  774         providing that the division must approve certain
  775         requests within 45 days; requiring the division to
  776         review and approve or reject certain revised internal
  777         controls or revised rules within 10 days after
  778         submission; deleting provisions relating to the
  779         renewal of a cardroom license; making technical
  780         changes; authorizing certain cardroom operators to
  781         offer a certain number of certain designated player
  782         games; requiring the designated player and employees
  783         of the designated player to be licensed; requiring the
  784         designated player to pay certain fees; prohibiting a
  785         cardroom operator from serving as the designated
  786         player in a game and from having a financial interest
  787         in a designated player; authorizing a cardroom
  788         operator to collect a rake, subject to certain
  789         requirements; requiring the dealer button to be
  790         rotated under certain circumstances; prohibiting a
  791         cardroom operator from allowing a designated player to
  792         pay an opposing player under certain circumstances;
  793         prohibiting the rules of the game or of the cardroom
  794         to require a designated player to cover more than 10
  795         times the maximum wager for players participating in
  796         any one game; prohibiting a cardroom or cardroom
  797         licensee from contracting with or receiving certain
  798         compensation from a player to allow that player to
  799         participate in any game as a designated player;
  800         revising requirements for a cardroom license to be
  801         issued or renewed; requiring a certain written
  802         agreement with a thoroughbred permitholder; providing
  803         contract requirements for the agreement; requiring a
  804         thoroughbred permitholder to remit a percentage of
  805         specified funds to the Florida Thoroughbred Breeders’
  806         Association, Inc., subject to certain requirements;
  807         requiring certain applicants to include a written
  808         agreement with an alternative quarter horse
  809         representative organization, if such organization
  810         exists, in their application for a cardroom license;
  811         conforming a cross-reference; providing a directive to
  812         the Division of Law Revision and Information;
  813         providing an effective date.