House Bill 1747er

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  1

  2         An act relating to pari-mutuel wagering;

  3         amending s. 550.2625, F.S.; revising standing

  4         requirements for stallion awards; amending s.

  5         550.09512, F.S.; repealing the expiration of

  6         that section; amending s. 550.09514, F.S.,

  7         providing a formula for the distribution of

  8         greyhound purses; requiring greyhound

  9         permitholders to produce weekly purse payment

10         reports; requiring greyhound permitholders to

11         make direct payment of purses to greyhound

12         owners based on certain amounts; providing for

13         a greyhound permitholder, under certain

14         conditions, to make deductions from purses paid

15         to kennel operators and to make payments to a

16         local association of greyhound kennel

17         operators; creating s. 550.6308, F.S.;

18         providing for issuance of a limited intertrack

19         wagering license; amending s. 550.0951, F.S.;

20         authorizing certain permitholders to transfer

21         daily license fee tax credits to other

22         permitholders and to receive reimbursement;

23         amending s. 26, ch. 96-364, Laws of Florida,

24         relating to tax on handle of live thoroughbred

25         performances, live jai alai performances, and

26         intertrack wagering; providing effective dates.

27

28  Be It Enacted by the Legislature of the State of Florida:

29

30         Section 1.  Paragraph (d) of subsection (3) of section

31  550.2625, Florida Statutes, is amended to read:


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  1         550.2625  Horseracing; minimum purse requirement,

  2  Florida breeders' and owners' awards.--

  3         (3)  Each horseracing permitholder conducting any

  4  thoroughbred race under this chapter, including any intertrack

  5  race taken pursuant to ss. 550.615-550.6305 or any interstate

  6  simulcast taken pursuant to s. 550.3551(3) shall pay a sum

  7  equal to 0.75 percent on all pari-mutuel pools conducted

  8  during any such race for the payment of breeders' and stallion

  9  awards as authorized in this section.  This subsection also

10  applies to all Breeder's Cup races conducted outside this

11  state taken pursuant to s. 550.3551(3).  On any race

12  originating live in this state which is broadcast out-of-state

13  to any location at which wagers are accepted pursuant to s.

14  550.3551(2), the host track is required to pay 3.3 percent of

15  the gross revenue derived from such out-of-state broadcasts as

16  breeders' and stallion awards.  The Florida Thoroughbred

17  Breeders' Association is authorized to receive these payments

18  from the permitholders and make payments of awards earned.

19  The Florida Thoroughbred Breeders' Association has the right

20  to withhold up to 10 percent of the permitholder's payments

21  under this section as a fee for administering the payments of

22  awards and for general promotion of the industry.  The

23  permitholder shall remit these payments to the Florida

24  Thoroughbred Breeders' Association by the 5th day of each

25  calendar month for such sums accruing during the preceding

26  calendar month and shall report such payments to the division

27  as prescribed by the division.  With the exception of the

28  10-percent fee, the moneys paid by the permitholders shall be

29  maintained in a separate, interest-bearing account, and such

30  payments together with any interest earned shall be used

31


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  1  exclusively for the payment of breeders' awards and stallion

  2  awards in accordance with the following provisions:

  3         (d)  In order for an owner of the sire of a

  4  thoroughbred horse winning a stakes race to be eligible to

  5  receive a stallion award, the stallion must have been

  6  registered with the Florida Thoroughbred Breeders'

  7  Association, and the breeding of the registered Florida-bred

  8  horse must have occurred in this state. The stallion must be

  9  standing permanently in this state between February 1st

10  through June 15th of each year or, if the stallion is dead,

11  must have stood permanently in this state for a period of not

12  less than 1 year immediately prior to its death. The removal

13  of a stallion from this state during the period of time

14  between February 1st through June 15th of any year for any

15  reason, other than exclusively for prescribed medical

16  treatment, as approved by the Florida Thoroughbred Breeders'

17  Association, renders the owner or owners of the stallion

18  ineligible to receive a stallion award under any circumstances

19  for offspring sired prior to removal; however, if a removed

20  stallion is returned to this state, all offspring sired

21  subsequent to the return make the owner or owners of the

22  stallion eligible for the stallion award but only for those

23  offspring sired subsequent to such return to this state. The

24  Florida Thoroughbred Breeders' Association shall maintain

25  complete records showing the date the stallion arrived in this

26  state for the first time, whether or not the stallion remained

27  in the state permanently, the location of the stallion, and

28  whether the stallion is still standing in this state and

29  complete records showing awards earned, received, and

30  distributed.  The association may charge the owner, owners, or

31  breeder a reasonable fee for this service.


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  1         Section 2.  Subsection (5) of section 550.09512,

  2  Florida Statutes, as created by section 1 of chapter 93-288,

  3  Laws of Florida, is amended to read:

  4         550.09512  Harness horse taxes; abandoned interest in a

  5  permit for nonpayment of taxes.--

  6         (5)  This section is repealed July 1, 1998, and shall

  7  be reviewed by the Legislature prior to that date.

  8         Section 3.  Subsection (2) of section 550.09514,

  9  Florida Statutes, is amended to read:

10         550.09514  Greyhound dogracing taxes; purse

11  requirements.--

12         (2)(a)  The division shall determine for each greyhound

13  permitholder the annual purse percentage rate of live handle

14  for the state fiscal year 1993-1994 by dividing total purses

15  paid on live handle by the permitholder, exclusive of payments

16  made from outside sources, during the 1993-1994 state fiscal

17  year by the permitholder's live handle for the 1993-1994 state

18  fiscal year. Each permitholder shall pay as purses for live

19  races conducted during its current race meet a percentage of

20  its live handle not less than the percentage determined under

21  this paragraph, exclusive of payments made by outside sources,

22  for its 1993-1994 state fiscal year.

23         (b)1.  Except as otherwise provided herein, in addition

24  to the minimum purse percentage required by paragraph (a),

25  each permitholder shall pay as purses, for fiscal year

26  1996-1997, an amount equal to 75 percent of the permitholder's

27  tax credit pursuant to s. 550.0951(1).

28         2.  Except as otherwise set forth herein, in addition

29  to the minimum purse percentage required by paragraph (a),

30  beginning July 1, 1997, each permitholder shall pay as purses

31  an annual amount equal to 75 percent of the daily license fees


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  1  paid by each permitholder for the 1994-1995 fiscal year. This

  2  purse supplement shall be disbursed weekly during the

  3  permitholder's race meet in an amount determined by dividing

  4  the annual purse supplement by the number of performances

  5  approved for the permitholder pursuant to its annual license

  6  and multiplying that amount by the number of performances

  7  conducted each week. For the greyhound permitholders in the

  8  county where there are two greyhound permitholders located as

  9  specified in s. 550.615(6), such permitholders shall pay in

10  the aggregate an amount equal to 75 percent of the daily

11  license fees paid by such permitholders for the 1994-1995

12  fiscal year.  These permitholders shall be jointly and

13  severally liable for such purse payments.

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15  The additional purses provided by this paragraph must be used

16  exclusively for purses other than stakes.  The division shall

17  conduct audits necessary to ensure compliance with this

18  section.

19         (c)1.  The division shall require sufficient

20  documentation from each greyhound permitholder regarding

21  purses paid on live racing and greyhound intertrack and

22  simulcast broadcasts to assure that the annual purse

23  percentage rates paid by each permitholder on the intertrack

24  or simulcast broadcasts are not reduced below those paid

25  during the 1993-1994 state fiscal year. In addition, Each

26  greyhound permitholder when conducting at least three live

27  performances during any week live races shall pay purses in

28  that week on wagers it accepts as a guest track on intertrack

29  and simulcast greyhound races at the same rate as it pays on

30  live races. Each greyhound permitholder when conducting at

31  least three live performances during any week acting as a host


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  1  track shall pay purses in that week, at the same rate as it

  2  pays on live races, on wagers accepted on greyhound such races

  3  at a guest track which is not conducting live racing and is

  4  located within the same market area as the greyhound

  5  permitholder conducting at least three live performances

  6  during any week host.

  7         2.  Each host greyhound permitholder shall pay purses

  8  on its simulcast and intertrack broadcasts of greyhound races

  9  to guest facilities that are located outside its market area

10  in an amount equal to one quarter of an amount determined by

11  subtracting the transmission costs of sending the simulcast or

12  intertrack broadcasts from an amount determined by adding the

13  fees received for greyhound simulcast races plus 3 percent of

14  the greyhound intertrack handle at guest facilities that are

15  located outside the market area of the host and that paid

16  contractual fees to the host for such broadcasts of greyhound

17  races.

18         (d) The division shall require sufficient documentation

19  from each greyhound permitholder regarding purses paid on live

20  racing to assure that the annual purse percentage rates paid

21  by each permitholder on the live races are not reduced below

22  those paid during the 1993-94 state fiscal year. The division

23  shall require sufficient documentation from each greyhound

24  permitholder to assure that the purses paid by each

25  permitholder on the greyhound intertrack and simulcast

26  broadcasts are in compliance with the requirements of

27  paragraph (c) of this section.

28         (e)(d)  Each greyhound permitholder who conducted live

29  racing in state fiscal year 1993-1994 shall submit to the

30  division by September 1, 1996, purse payment records and

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  1  copies of purse contracts pertaining to greyhound racing that

  2  were in effect during state fiscal year 1993-1994.

  3         (f)  Each greyhound permitholder shall, during the

  4  permitholder's race meet, supply kennel operators and the

  5  Division of Pari-Mutuel Wagering with a weekly report showing

  6  purses paid on live greyhound races and all greyhound

  7  intertrack and simulcast broadcasts, including both as a guest

  8  and a host together with the handle or commission calculations

  9  on which such purses were paid and the transmission costs of

10  sending the simulcast or intertrack broadcasts, so that the

11  kennel operators may determine statutory and contractual

12  compliance.

13         (g)  Each greyhound permitholder shall make direct

14  payment of purses to the greyhound owners who have filed with

15  such permitholder appropriate federal taxpayer identification

16  information based on the percentage amount agreed upon between

17  the kennel operator and the greyhound owner.

18         (h)  At the request of a majority of kennel operators

19  under contract with a greyhound permitholder, the permitholder

20  shall make deductions from purses paid to each kennel operator

21  electing such deduction and shall make a direct payment of

22  such deductions to the local association of greyhound kennel

23  operators formed by a majority of kennel operators under

24  contract with the permitholder. The amount of the deduction

25  shall be at least 1 percent of purses, as determined by the

26  local association of greyhound kennel operators. No deductions

27  may be taken pursuant to this paragraph without a kennel

28  operator's specific approval before or after the effective

29  date of this act.

30         Section 4.  Section 550.6308, Florida Statutes, is

31  created to read:


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  1         550.6308  Limited intertrack wagering license.--In

  2  recognition of the economic importance of the thoroughbred

  3  breeding industry to this state, its positive impact on

  4  tourism, and of the importance of a permanent thoroughbred

  5  sales facility as a key focal point for the activities of the

  6  industry, a limited license to conduct intertrack wagering is

  7  established to ensure the continued viability and public

  8  interest in thoroughbred breeding in Florida.

  9         (1)  Upon application to the division on or before

10  January 31 of each year, any person who is licensed to conduct

11  public sales of thoroughbred horses pursuant to s. 535.01, who

12  has conducted at least 15 days of thoroughbred horse sales at

13  a permanent sales facility in this state for at least 3

14  consecutive years, and who has conducted at least 1 day of

15  nonwagering thoroughbred racing in this state, with a purse

16  structure of at least $250,000 per year for 2 consecutive

17  years before such application, shall be issued a license to

18  conduct intertrack wagering for thoroughbred racing for up to

19  21 days in connection with thoroughbred sales, to conduct

20  intertrack wagering at such permanent sales facility between

21  November 1 and May 8, to conduct intertrack wagering at such

22  permanent sales facility between May 9 and October 31 at such

23  times and on such days as any thoroughbred, jai alai, or a

24  greyhound permitholder in the same county is not conducting

25  live performances, and to conduct intertrack wagering under

26  the provisions of this subsection during the weekend of the

27  Kentucky Derby, the Preakness, the Belmont, and a Breeders'

28  Cup Meet that is conducted before November 1 and after May 8,

29  subject to conditions set forth in this section but no more

30  than one such license may be issued and no such license may be

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  1  issued for a facility located within 50 miles of any

  2  thoroughbred permitholder's track.

  3         (2)  If more than one application is submitted for such

  4  license, the division shall determine which applicant shall be

  5  granted the license. In making its determination, the division

  6  shall grant the license to the applicant demonstrating

  7  superior capabilities, as measured by the length of time the

  8  applicant has been conducting thoroughbred sales within this

  9  state or elsewhere, the applicant's total volume of

10  thoroughbred horse sales, within this state or elsewhere, the

11  length of time the applicant has maintained a permanent

12  thoroughbred sales facility in this state, and the quality of

13  the facility.

14         (3)  The applicant must comply with the provisions of

15  ss. 550.125 and 550.1815.

16         (4)  Intertrack wagering under this section may be

17  conducted only on thoroughbred horse racing.

18         Section 5.  Subsection (1) of section 550.0951, Florida

19  Statutes is amended to read:

20         550.0951  Payment of daily license fee and taxes.--

21         (1)(a)  DAILY LICENSE FEE.--Each person engaged in the

22  business of conducting race meetings or jai alai games under

23  this chapter, hereinafter referred to as the "permitholder,"

24  "licensee," or "permittee," shall pay to the division, for the

25  use of the division, a daily license fee on each live or

26  simulcast pari-mutuel event of $100 for each horserace and $80

27  for each dograce and $40 for each jai alai game conducted at a

28  racetrack or fronton licensed under this chapter.  Effective

29  October 1, 1996, in addition to the tax exemption specified in

30  s. 550.09514(1) of $360,000 or $500,000 per greyhound

31  permitholder per state fiscal year, each greyhound


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  1  permitholder shall receive in the current state fiscal year a

  2  tax credit equal to the number of live greyhound races

  3  conducted in the previous state fiscal year times the daily

  4  license fee specified for each dograce in this subsection

  5  applicable for the previous state fiscal year.  This tax

  6  credit and the exemption in s. 550.09514(1) shall be

  7  applicable to the tax on live handle under subsection (3)

  8  except during any charity or scholarship performances

  9  conducted pursuant to s. 550.0351. Effective October 1, 1996,

10  each permitholder shall pay daily license fees not to exceed

11  $500 per day on any simulcast races or games on which such

12  permitholder accepts wagers regardless of the number of

13  out-of-state events taken or the number of out-of-state

14  locations from which such events are taken. This license fee

15  shall be deposited with the Treasurer to the credit of the

16  Pari-mutuel Wagering Trust Fund.

17         (b)  Each permitholder authorized a maximum tax savings

18  of $500,000 per state fiscal year pursuant to s. 550.09514(1)

19  or the greyhound permitholder that had the lowest live handle

20  during the preceding state fiscal year, which cannot utilize

21  the full amount of the daily license fee credit, may, after

22  notifying the division in writing, elect once per state fiscal

23  year on a form provided by the division to transfer such

24  credit or any portion thereof to any greyhound permitholder

25  which acts as a host track to such permitholder for the

26  purpose of intertrack wagering. Once an election to transfer

27  such credit is filed with the division it shall not be

28  rescinded. The division shall disapprove the credit transfer

29  when the amount of credit or portion thereof is unavailable to

30  the transferring permitholder or when the permitholder, who is

31  entitled to transfer the credit or who is entitled to receive


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  1  the credit, owes taxes to the state pursuant to a deficiency

  2  letter or administrative complaint issued by the division.

  3  Upon approval of the transfer by the division, the transferred

  4  tax credit shall be effective for the first performance of the

  5  next biweekly pay period as specified in subsection (5). The

  6  daily license fee credit transferred to such host track may be

  7  applied by such host track against its taxes on live racing as

  8  provided in this subsection. The greyhound permitholder host

  9  track to which such daily license fee credit is transferred

10  shall reimburse such permitholder the exact monetary value of

11  such transferred credit as actually applied against the taxes

12  of the host track. The division shall ensure that all

13  transfers of credit are made in accordance with this

14  subsection and shall have the authority to adopt rules to

15  ensure the implementation of this section.

16         Section 6.  Section 26 of chapter 96-364, Laws of

17  Florida, is amended to read:

18         Section 26.  Effective July 1, 1998, the amendments to

19  subsection (3) of section 550.0951, subsections (2) and (3) of

20  section 550.09511, subsection (2) of section 550.09515, and

21  paragraph (a) of subsection (2) of section 550.2625, Florida

22  Statutes, shall expire and the text of said subsections shall

23  revert to that in existence immediately prior to chapter

24  96-364, Laws of Florida, this act becoming law and as set

25  forth in that the act without the amendments to such

26  subsections, specified in that this act, except that any

27  amendments to such text enacted other than by that this act

28  shall be preserved and continue to operate to the extent that

29  such amendments are not dependent upon the portions of said

30  text which expire pursuant to the provisions of that this act.

31  The Statutory Revision Division of the Joint Legislative


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  1  Management Committee shall include in an appropriate reviser's

  2  bill any amendments to said section which are necessary to

  3  give effect to the legislative intent expressed in this

  4  section.

  5         Section 7.  Except as otherwise expressly provided in

  6  this act, this act shall take effect upon becoming a law.

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