Florida Senate - 2012 SB 986
By Senator Altman
24-00339A-12 2012986__
1 A bill to be entitled
2 An act relating to slot machines and slot machine
3 components; amending s. 551.103, F.S.; requiring the
4 Division of Pari-mutuel Wagering within the Department
5 of Business and Professional Regulation to adopt rules
6 regulating slot machines and providing specifications
7 for the internal components of slot machines;
8 requiring that the division adopt specifications and
9 procedures to ensure random probabilities of winning
10 plays and provide for the operation of random-number
11 generators; amending s. 551.104, F.S.; deleting
12 obsolete provisions; clarifying duties of a slot
13 machine licensee to conform to changes made by the
14 act; amending s. 551.121, F.S.; prohibiting a slot
15 machine’s random-number generator from serving more
16 than one station or terminal where an individual
17 player places his or her wagers; providing for
18 progressive jackpot payouts except in conjunction with
19 slot machines between other licensed facilities;
20 providing an effective date.
21
22 Be It Enacted by the Legislature of the State of Florida:
23
24 Section 1. Subsection (1) of section 551.103, Florida
25 Statutes, is amended to read:
26 551.103 Powers and duties of the division and law
27 enforcement.—
28 (1) The division shall adopt, pursuant to the provisions of
29 ss. 120.536(1) and 120.54, all rules necessary to implement,
30 administer, and regulate slot machines and slot machine gaming
31 as authorized in this chapter. The Such rules must include:
32 (a) Procedures for applying for a slot machine license and
33 renewal of a slot machine license.
34 (b) Technical requirements and the qualifications contained
35 in this chapter that are necessary to receive a slot machine
36 license or slot machine occupational license.
37 (c) Procedures to scientifically test and technically
38 evaluate slot machines, including all components, hardware, and
39 software for slot machines, for compliance with this chapter.
40 The division may contract with an independent testing laboratory
41 to conduct any necessary testing under this section. The
42 independent testing laboratory must have a national reputation
43 and be which is demonstrably competent and qualified to
44 scientifically test and evaluate slot machines for compliance
45 with this chapter and to otherwise perform the functions
46 assigned to it in this chapter. An independent testing
47 laboratory may shall not be owned or controlled by a licensee.
48 The use of an independent testing laboratory for any purpose
49 related to the conduct of slot machine gaming by a licensee
50 under this chapter shall be made from a list of one or more
51 laboratories approved by the division.
52 (d) Procedures relating to slot machine revenues, including
53 verifying and accounting for such revenues, auditing, and
54 collecting taxes and fees consistent with this chapter.
55 (e) Procedures for regulating, managing, and auditing the
56 operation, financial data, and program information relating to
57 slot machine gaming which that allow the division and the
58 Department of Law Enforcement to audit the operation, financial
59 data, and program information of a slot machine licensee, as
60 required by the division or the Department of Law Enforcement,
61 and provide the division and the Department of Law Enforcement
62 with the ability to monitor, at any time on a real-time basis,
63 wagering patterns, payouts, tax collection, and compliance with
64 any rules adopted by the division for the regulation and control
65 of slot machines operated under this chapter. The Such
66 continuous and complete access, at any time on a real-time
67 basis, shall include the ability of either the division or the
68 Department of Law Enforcement to suspend play immediately on
69 particular slot machines if monitoring of the facilities-based
70 computer system indicates possible tampering or manipulation of
71 those slot machines or the ability to suspend play immediately
72 of the entire operation if the tampering or manipulation is of
73 the computer system itself. The division shall notify the
74 Department of Law Enforcement or the Department of Law
75 Enforcement shall notify the division, as appropriate, whenever
76 there is a suspension of play under this paragraph. The division
77 and the Department of Law Enforcement shall exchange the such
78 information necessary for and cooperate in the investigation of
79 the circumstances requiring suspension of play under this
80 paragraph.
81 (f) Procedures for requiring each licensee at his or her
82 own cost and expense to supply the division with a bond having
83 the penal sum of $2 million payable to the Governor and his or
84 her successors in office for each year of the licensee’s slot
85 machine operations. The Any bond shall be issued by a surety or
86 sureties approved by the division and the Chief Financial
87 Officer, conditioned to faithfully make the payments to the
88 Chief Financial Officer in his or her capacity as treasurer of
89 the division. The licensee shall be required to keep its books
90 and records and make reports as provided in this chapter and to
91 conduct its slot machine operations in conformity with this
92 chapter and all other provisions of law. The Such bond shall be
93 separate and distinct from the bond required in s. 550.125.
94 (g) Procedures for requiring licensees to maintain
95 specified records and submit any data, information, record, or
96 report, including financial and income records, required by this
97 chapter or determined by the division to be necessary to the
98 proper implementation and enforcement of this chapter.
99 (h) A requirement that the payout percentage of a slot
100 machine be no less than 85 percent.
101 (i) Minimum standards for security of the facilities,
102 including floor plans, security cameras, and other security
103 equipment.
104 (j) Procedures for requiring slot machine licensees to
105 implement and establish drug-testing programs for all slot
106 machine occupational licensees.
107 (k) Specifications of the required internal components for
108 a slot machine, including the location, configuration, and
109 function of the components, and the operating requirements for
110 all hardware and software.
111 (l) Procedures and specifications for slot machines to
112 ensure the random probabilities of winning plays and the
113 specifications for the operation of the random-number generator
114 of each slot machine.
115 Section 2. Subsection (4) of section 551.104, Florida
116 Statutes, is amended to read:
117 551.104 License to conduct slot machine gaming.—
118 (4) As a condition of licensure and to maintain continued
119 authority for the conduct of slot machine gaming, the slot
120 machine licensee shall:
121 (a) Continue to be in compliance with this chapter.
122 (b) Continue to be in compliance with chapter 550, where
123 applicable, and maintain the pari-mutuel permit and license in
124 good standing pursuant to the provisions of chapter 550.
125 Notwithstanding any contrary provision of law and in order to
126 expedite the operation of slot machines at eligible facilities,
127 any eligible facility shall be entitled within 60 days after the
128 effective date of this act to amend its 2006-2007 pari-mutuel
129 wagering operating license issued by the division under ss.
130 550.0115 and 550.01215. The division shall issue a new license
131 to the eligible facility to effectuate any approved change.
132 (c) Conduct no fewer than a full schedule of live racing or
133 games as defined in s. 550.002(11). A permitholder’s
134 responsibility to conduct such number of live races or games
135 shall be reduced by the number of races or games that could not
136 be conducted due to the direct result of fire, war, hurricane,
137 or other disaster or event beyond the control of the
138 permitholder.
139 (d) Upon approval of any changes relating to the pari
140 mutuel permit by the division, be responsible for providing
141 appropriate current and accurate documentation on a timely basis
142 to the division in order to continue the slot machine license in
143 good standing. Changes in ownership or interest of a slot
144 machine license of 5 percent or more of the stock or other
145 evidence of ownership or equity in the slot machine license or
146 any parent corporation or other business entity that in any way
147 owns or controls the slot machine license must shall be approved
148 by the division before the prior to such change, unless the
149 owner is an existing holder of that license who was previously
150 approved by the division. Changes in ownership or interest of a
151 slot machine license of less than 5 percent, unless such change
152 results in a cumulative total of 5 percent or more, shall be
153 reported to the division within 20 days after the change. The
154 division may then conduct an investigation to ensure that the
155 license is properly updated to show the change in ownership or
156 interest. Reporting No reporting is not required if the person
157 holds is holding 5 percent or less equity or securities of a
158 corporate owner of the slot machine licensee that has its
159 securities registered pursuant to s. 12 of the Securities
160 Exchange Act of 1934, 15 U.S.C. ss. 78a-78kk, and if such
161 corporation or entity files with the United States Securities
162 and Exchange Commission the reports required by s. 13 of that
163 act or if the securities of the corporation or entity are
164 regularly traded on an established securities market in the
165 United States. A change in ownership or interest of less than 5
166 percent which results in a cumulative ownership or interest of 5
167 percent or more must shall be approved by the division before
168 the prior to such change unless the owner is an existing holder
169 of the license who was previously approved by the division.
170 (e) Allow the division and the Department of Law
171 Enforcement unrestricted access to and right of inspection of
172 facilities of a slot machine licensee in which any activity
173 relative to the conduct of slot machine gaming is conducted.
174 (f) Ensure that the facilities-based computer system that
175 the licensee will use for operational and accounting functions
176 of the slot machine facility is specifically structured to
177 facilitate regulatory oversight. The facilities-based computer
178 system shall be designed to provide the division and the
179 Department of Law Enforcement with the ability to monitor, at
180 any time on a real-time basis, the wagering patterns, payouts,
181 tax collection, and such other operations as necessary to
182 determine whether the facility is in compliance with statutory
183 provisions and rules adopted by the division for the regulation
184 and control of slot machine gaming. The division and the
185 Department of Law Enforcement shall have complete and continuous
186 access to this system. Such access shall include the ability of
187 either the division or the Department of Law Enforcement to
188 suspend play immediately on particular slot machines if
189 monitoring of the system indicates possible tampering or
190 manipulation of those slot machines or the ability to suspend
191 play immediately of the entire operation if the tampering or
192 manipulation is of the computer system itself. The computer
193 system shall be reviewed and approved by the division to ensure
194 necessary access, security, and functionality. The division may
195 adopt rules to provide for the approval process.
196 (g) Ensure that each slot machine is protected from
197 manipulation or tampering to affect the random probabilities of
198 winning plays. The division or the Department of Law Enforcement
199 has shall have the authority to suspend play upon reasonable
200 suspicion of any manipulation or tampering. When play has been
201 suspended on any slot machine, the division or the Department of
202 Law Enforcement may examine the any slot machine to determine
203 whether the machine has been tampered with or manipulated and
204 whether the machine should be returned to operation.
205 (h) Submit a security plan, including the facilities’ floor
206 plan, the locations of security cameras, and a listing of all
207 security equipment that is capable of observing and
208 electronically recording activities being conducted in the
209 facilities of the slot machine licensee. The security plan must
210 meet the minimum security requirements as determined by the
211 division under s. 551.103(1)(i) and be implemented before the
212 prior to operation of slot machine gaming. The slot machine
213 licensee’s facilities must adhere to the security plan at all
214 times. Any changes to the security plan must be submitted by the
215 licensee to the division before the plan is implemented prior to
216 implementation. The division shall furnish copies of the
217 security plan and changes in the plan to the Department of Law
218 Enforcement.
219 (i) Create and file with the division a written policy for:
220 1. Creating opportunities to purchase from vendors in this
221 state, including minority vendors.
222 2. Creating opportunities for employment of residents of
223 this state, including minority residents.
224 3. Ensuring opportunities for construction services from
225 minority contractors.
226 4. Ensuring that opportunities for employment are offered
227 on an equal, nondiscriminatory basis.
228 5. Training for employees on responsible gaming and working
229 with a compulsive or addictive gambling prevention program to
230 further its purposes as provided for in s. 551.118.
231 6. The implementation of a drug-testing program that
232 includes, but is not limited to, requiring each employee to sign
233 an agreement that he or she understands that the slot machine
234 facility is a drug-free workplace.
235
236 The slot machine licensee shall use the Internet-based job
237 listing system of the Department of Economic Opportunity in
238 advertising employment opportunities. Beginning in June 2007,
239 Each slot machine licensee shall provide an annual report to the
240 division containing information indicating compliance with this
241 paragraph in regard to minority persons.
242 (j) Ensure that the payout percentage of a slot machine
243 gaming facility is at least 85 percent.
244 Section 3. Subsection (5) of section 551.121, Florida
245 Statutes, is amended to read:
246 551.121 Prohibited activities and devices; exceptions.—
247 (5) A slot machine’s random-number generator may not serve
248 more than one station or terminal where an individual player
249 places his or her wagers. However, a slot machine, or the
250 computer operating system linking the slot machine, may be
251 linked by any means to any other slot machine or computer
252 operating system within the facility of a slot machine licensee
253 for progressive jackpot payouts. A progressive system may not be
254 used in conjunction with slot machines between licensed
255 facilities in Florida or in other jurisdictions.
256 Section 4. This act shall take effect July 1, 2012.