Senate Bill 0440e1

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  1                      A bill to be entitled

  2         An act relating to pari-mutuel wagering;

  3         amending s. 550.01215, F.S.; revising language

  4         with respect to periods of operation for

  5         certain permitholders; amending s. 550.0951,

  6         F.S.; providing that no admission tax shall be

  7         imposed on any free passes or complimentary

  8         cards for admission to pari-mutuel events;

  9         reviving, reenacting, and amending s.

10         550.09515, F.S., relating to thoroughbred horse

11         taxes; revising the tax on handle and

12         additional purse payment requirements for

13         certain guest thoroughbred permitholders;

14         amending s. 550.09515, F.S.; amending

15         thoroughbred horse taxes; repealing increased

16         tax requirements for certain thoroughbred

17         permitholders operating in multiple tax

18         periods; deleting obsolete language; amending

19         s. 550.2625, F.S.; revising eligibility

20         requirements with respect to stallion awards;

21         reenacting s. 550.2625(2), F.S., relating to

22         horseracing purse payment requirements and

23         purse accounts used for Florida Owners' Awards;

24         amending s. 550.5251, F.S.; revising the hours

25         of operation for thoroughbred racing

26         permitholders; amending s. 550.615, F.S.;

27         providing for the retention of tax revenues by

28         a thoroughbred permitholder conducting

29         specified intertrack wagering; providing for

30         certain purse payments; repealing subsection

31         (11) of s. 550.615, F.S.; requiring certain


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  1         intertrack wagering broadcasts; amending s.

  2         550.6305, F.S.; revising language with respect

  3         to intertrack wagering and guest track

  4         payments; creating s. 550.6308, F.S.; providing

  5         for a limited intertrack wagering license;

  6         creating s. 550.72, F.S.; directing a study of

  7         the feasibility of state or municipal ownership

  8         of Hialeah Race Course; providing an

  9         appropriation; repealing s. 550.2425, F.S.,

10         relating to a racing laboratory at horse

11         racetrack facilities; repealing s. 550.655,

12         F.S., relating to backside medical and health

13         benefits; providing effective dates.

14

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

16

17         Section 1.  Subsections (1) and (5) of section

18  550.01215, Florida Statutes, are amended to read:

19         550.01215  License application; periods of operation;

20  bond, conversion of permit.--

21         (1)  Each permitholder shall annually, during the

22  period between December 15 and January 4, file in writing with

23  the division its application for a license to conduct

24  performances during the next state fiscal year.  Each

25  application shall specify the number, dates, and starting

26  times of all performances which the permitholder intends to

27  conduct.  It shall also specify which performances will be

28  conducted as charity or scholarship performances. In addition,

29  each application for a license shall include, for each

30  permitholder which elects to operate a cardroom, the dates and

31  periods of operation the permitholder intends to operate the


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  1  cardroom or, for each thoroughbred permitholder which elects

  2  to receive or rebroadcast out-of-state races after 7 p.m.

  3  between the hours of 7 p.m. and 10 p.m., the dates for all

  4  performances which the permitholder intends to conduct.

  5  Permitholders shall be entitled to amend their applications

  6  through February 28.

  7         (5)  Except as provided in s. 550.5251 for thoroughbred

  8  racing, the division shall issue each license no later than

  9  March 15. Each permitholder shall operate all performances at

10  the date and time specified on its license.  The division

11  shall have the authority to approve minor changes in racing

12  dates after a license has been issued.  The division may

13  approve changes in racing dates after a license has been

14  issued when there is no objection from any operating

15  permitholder located within 50 miles of the permitholder

16  requesting the changes in operating dates.  In the event of an

17  objection, the division shall approve or disapprove the change

18  in operating dates based upon the impact on operating

19  permitholders located within 50 miles of the permitholder

20  requesting the change in operating dates. In making the

21  determination to change racing dates, the division shall take

22  into consideration the impact of such changes on state

23  revenues.

24         Section 2.  Subsection (2) of section 550.0951, F.S.,

25  is amended to read:

26         550.0951  Payment of daily license fee and taxes.--

27         (2)  ADMISSION TAX.--

28         (a)  An admission tax equal to 15 percent of the

29  admission charge for entrance to the permitholder's facility

30  and grandstand area, or 10 cents, whichever is greater, is

31  imposed on each person attending a horserace, dograce, or jai


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  1  alai game.  The permitholder shall be responsible for

  2  collecting the admission tax.

  3         (b)  No admission tax under this chapter or chapter 212

  4  shall be imposed on any free passes or complimentary cards

  5  issued to persons for which there is no cost to the person for

  6  admission to pari-mutuel events. An admission tax is imposed

  7  on any free passes or complimentary cards issued to guests by

  8  permitholders in an amount equal to the tax imposed on the

  9  regular and usual admission charge for entrance to the

10  permitholder's facility and grandstand area.

11         (c)  A permitholder may issue tax-free passes to its

12  officers, officials, and employees or other persons actually

13  engaged in working at the racetrack, including accredited

14  press representatives such as reporters and editors, and may

15  also issue tax-free passes to other permitholders for the use

16  of their officers and officials.  The permitholder shall file

17  with the division a list of all persons to whom tax-free

18  passes are issued under this paragraph.

19         Section 3.  Notwithstanding subsection (5) of section

20  550.09515, Florida Statutes, as created by section 1 of

21  chapter 93-123, Laws of Florida, and notwithstanding section

22  26 of chapter 96-364, Laws of Florida, section 550.09515,

23  Florida Statutes, shall not stand repealed on July 1, 1998,

24  but is revived, reenacted, and amended to read:

25         550.09515  Thoroughbred horse taxes; abandoned interest

26  in a permit for nonpayment of taxes.--

27         (1)  Pari-mutuel wagering at thoroughbred horse

28  racetracks in this state is an important business enterprise,

29  and taxes derived therefrom constitute a part of the tax

30  structure which funds operation of the state. Thoroughbred

31  horse permitholders should pay their fair share of these taxes


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  1  to the state.  This business interest should not be taxed to

  2  such an extent as to cause any racetrack which is operated

  3  under sound business principles to be forced out of business.

  4  Due to the need to protect the public health, safety, and

  5  welfare, the gaming laws of the state provide for the

  6  thoroughbred horse industry to be highly regulated and taxed.

  7  The state recognizes that there exist identifiable differences

  8  between thoroughbred horse permitholders based upon their

  9  ability to operate under such regulation and tax system and at

10  different periods during the year.

11         (2)(a)  Notwithstanding the provisions of s.

12  550.0951(3)(a), the tax on handle for live thoroughbred horse

13  performances shall be subject to the following:

14         1.  The tax on handle per performance for live

15  thoroughbred performances is 2.25 percent of handle for

16  performances conducted during the period beginning on January

17  3 and ending March 16; .20 .70 percent of handle for

18  performances conducted during the period beginning March 17

19  and ending May 22; and 1.5 percent of handle for performances

20  conducted during the period beginning May 23 and ending

21  January 2.

22         2.  If any thoroughbred permitholder conducts

23  performances during more than one time period or if

24  performances are conducted during more than one period at any

25  facility, the tax on handle per performance is double the sum

26  of the tax percentages for the periods in which performances

27  are being conducted, except:

28         a.  Pursuant to s. 550.01215, two permitholders, by

29  mutual written agreement, may agree to the operation by one of

30  them in the other permitholder's tax period for up to 3 days,

31  if the 3 days are either the first 3 days or the last 3 days


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  1  of the racing period in which the permitholders intend to

  2  operate.

  3         b.  If, on March 31 of any year, there is no

  4  permitholder holding a license for operating any one of the

  5  three race periods set forth in this section or if the

  6  permitholder who is licensed to operate in any period fails to

  7  operate for 10 consecutive days, a permitholder already

  8  licensed to operate in another period may apply for and be

  9  issued a license to operate the period in question, in

10  addition to the period already licensed.

11         c.  Two permitholders who operated in different periods

12  in the preceding fiscal year may, by mutual written agreement,

13  switch periods for the current racing season, even if it

14  results in either permitholder or the facility of a

15  permitholder being operated in two different periods.

16

17  However, any thoroughbred permitholder whose total handle on

18  live performances during the 1991-1992 state fiscal year was

19  not greater than $34 million is authorized to conduct live

20  performances at any time of the year and shall pay 0.5 percent

21  on live handle per performance.

22         3.  For the period beginning on April 1 and ending May

23  23 during the state fiscal year 1992-1993, any permitholder

24  which has operated less than 51 racing days in the last 18

25  months may operate said period and pay 1.25 percent tax on

26  live handle per performance.  In the event this provision

27  takes effect after April 1, 1993, it shall be construed to

28  apply retroactively from April 1, 1993, through May 23, 1993.

29         4.  In the event any licenses have been issued to any

30  thoroughbred permitholders for racing dates prior to April 26,

31


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  1  1993, then, notwithstanding the provisions of s. 550.525(2),

  2  amendments may be filed to the racing dates up to May 1, 1993.

  3         (b)  For purposes of this section, the term "handle"

  4  shall have the same meaning as in s. 550.0951, and shall not

  5  include handle from intertrack wagering.

  6         (3)(a)  The permit of a thoroughbred horse permitholder

  7  who does not pay tax on handle for live thoroughbred horse

  8  performances for a full schedule of live races during any 2

  9  consecutive state fiscal years shall be void and shall escheat

10  to and become the property of the state unless such failure to

11  operate and pay tax on handle was the direct result of fire,

12  strike, war, or other disaster or event beyond the ability of

13  the permitholder to control. Financial hardship to the

14  permitholder shall not, in and of itself, constitute just

15  cause for failure to operate and pay tax on handle.

16         (b)  In order to maximize the tax revenues to the

17  state, the division shall reissue an escheated thoroughbred

18  horse permit to a qualified applicant pursuant to the

19  provisions of this chapter as for the issuance of an initial

20  permit.  However, the provisions of this chapter relating to

21  referendum requirements for a pari-mutuel permit shall not

22  apply to the reissuance of an escheated thoroughbred horse

23  permit.  As specified in the application and upon approval by

24  the division of an application for the permit, the new

25  permitholder shall be authorized to operate a thoroughbred

26  horse facility anywhere in the same county in which the

27  escheated permit was authorized to be operated,

28  notwithstanding the provisions of s. 550.054(2) relating to

29  mileage limitations.

30         (4)  In the event that a court of competent

31  jurisdiction determines any of the provisions of this section


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  1  to be unconstitutional, it is the intent of the Legislature

  2  that the provisions contained in this section shall be null

  3  and void and that the provisions of s. 550.0951 shall apply to

  4  all thoroughbred horse permitholders beginning on the date of

  5  such judicial determination.  To this end, the Legislature

  6  declares that it would not have enacted any of the provisions

  7  of this section individually and, to that end, expressly finds

  8  them not to be severable.

  9         (5)  Notwithstanding the provisions of s.

10  550.0951(3)(c), the tax on handle for intertrack wagering on

11  rebroadcasts of simulcast horseraces is 2.4 percent of the

12  handle; provided however, that if the guest track is a

13  throughbred track located more than 35 miles from the host

14  track, the host track shall pay a tax of .5 percent of the

15  handle, and additionally the host track shall pay to the guest

16  track 1.9 percent of the handle to be used by the guest track

17  solely for purses.  The tax shall be deposited into the

18  General Revenue Fund.

19         Section 4.  Effective July 1, 2000, paragraph (a) of

20  subsection (2) of section 550.09515, Florida Statutes, is

21  amended to read:

22         550.09515  Thoroughbred horse taxes; abandoned interest

23  in a permit for nonpayment of taxes.--

24         (2)(a)  Notwithstanding the provisions of s.

25  550.0951(3)(a), the tax on handle for live thoroughbred horse

26  performances shall be subject to the following:

27         1.  The tax on handle per performance for live

28  thoroughbred performances is 2.25 percent of handle for

29  performances conducted during the period beginning on January

30  3 and ending March 16; .70 .20 percent of handle for

31  performances conducted during the period beginning March 17


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  1  and ending May 22; and 1.5 percent of handle for performances

  2  conducted during the period beginning May 23 and ending

  3  January 2.

  4         2.  If any thoroughbred permitholder conducts

  5  performances during more than one time period or if

  6  performances are conducted during more than one period at any

  7  facility, the tax on handle per performance is double the sum

  8  of the tax percentages for the periods in which performances

  9  are being conducted, except:

10         a.  Pursuant to s. 550.01215, two permitholders, by

11  mutual written agreement, may agree to the operation by one of

12  them in the other permitholder's tax period for up to 3 days,

13  if the 3 days are either the first 3 days or the last 3 days

14  of the racing period in which the permitholders intend to

15  operate.

16         b.  If, on March 31 of any year, there is no

17  permitholder holding a license for operating any one of the

18  three race periods set forth in this section or if the

19  permitholder who is licensed to operate in any period fails to

20  operate for 10 consecutive days, a permitholder already

21  licensed to operate in another period may apply for and be

22  issued a license to operate the period in question, in

23  addition to the period already licensed.

24         c.  Two permitholders who operated in different periods

25  in the preceding fiscal year may, by mutual written agreement,

26  switch periods for the current racing season, even if it

27  results in either permitholder or the facility of a

28  permitholder being operated in two different periods.

29

30         2.  However, any thoroughbred permitholder whose total

31  handle on live performances during the 1991-1992 state fiscal


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  1  year was not greater than $34 million is authorized to conduct

  2  live performances at any time of the year and shall pay 0.5

  3  percent on live handle per performance.

  4         3.  For the period beginning on April 1 and ending May

  5  23 during the state fiscal year 1992-1993, any permitholder

  6  which has operated less than 51 racing days in the last 18

  7  months may operate said period and pay 1.25 percent tax on

  8  live handle per performance.  In the event this provision

  9  takes effect after April 1, 1993, it shall be construed to

10  apply retroactively from April 1, 1993, through May 23, 1993.

11         4.  In the event any licenses have been issued to any

12  thoroughbred permitholders for racing dates prior to April 26,

13  1993, then, notwithstanding the provisions of s. 550.525(2),

14  amendments may be filed to the racing dates up to May 1, 1993.

15         Section 5.  Paragraph (d) of subsection (3) of section

16  550.2625, Florida Statutes, is amended to read:

17         550.2625  Horseracing; minimum purse requirement,

18  Florida breeders' and owners' awards.--

19         (3)  Each horseracing permitholder conducting any

20  thoroughbred race under this chapter, including any intertrack

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

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

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

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

25  awards as authorized in this section.  This subsection also

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

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

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

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

30  550.3551(2), the host track is required to pay 3.3 percent of

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


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  1  breeders' and stallion awards.  The Florida Thoroughbred

  2  Breeders' Association is authorized to receive these payments

  3  from the permitholders and make payments of awards earned.

  4  The Florida Thoroughbred Breeders' Association has the right

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

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

  7  awards and for general promotion of the industry.  The

  8  permitholder shall remit these payments to the Florida

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

10  calendar month for such sums accruing during the preceding

11  calendar month and shall report such payments to the division

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

13  10-percent fee, the moneys paid by the permitholders shall be

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

15  payments together with any interest earned shall be used

16  exclusively for the payment of breeders' awards and stallion

17  awards in accordance with the following provisions:

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

19  thoroughbred horse winning a stakes race to be eligible to

20  receive a stallion award, the stallion must have been

21  registered with the Florida Thoroughbred Breeders'

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

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

24  standing permanently in this state during the period of time

25  between February 1 and June 15 of each year or, if the

26  stallion is dead, must have stood permanently in this state

27  for a period of not less than 1 year immediately prior to its

28  death. The removal of a stallion from this state during the

29  period of time between February 1 and June 15 of any year for

30  any reason, other than exclusively for prescribed medical

31  treatment, as approved by the Florida Thoroughbred Breeders'


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  1  Association renders the owner or owners of the stallion

  2  ineligible to receive a stallion award under any circumstances

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

  4  stallion is returned to this state, all offspring sired

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

  6  stallion eligible for the stallion award but only for those

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

  8  Florida Thoroughbred Breeders' Association shall maintain

  9  complete records showing the date the stallion arrived in this

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

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

12  whether the stallion is still standing in this state and

13  complete records showing awards earned, received, and

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

15  breeder a reasonable fee for this service.

16         Section 6.  Notwithstanding section 26 of chapter

17  96-364, Laws of Florida, subsection (2) of section 550.2625,

18  Florida Statutes, shall not stand repealed on July 1, 1998,

19  but is revived, reenacted, and amended to read:

20         550.2625  Horseracing; minimum purse requirement,

21  Florida breeders' and owners' awards.--

22         (2)  Each permitholder conducting a horserace meet is

23  required to pay from the takeout withheld on pari-mutuel pools

24  a sum for purses in accordance with the type of race

25  performed.

26         (a)  A permitholder conducting a thoroughbred horse

27  race meet under this chapter must pay from the takeout

28  withheld a sum not less than 7.5 percent of all contributions

29  to pari-mutuel pools conducted during the race meet as purses.

30  In addition to the 7.5 percent minimum purse payment,

31  permitholders conducting live thoroughbred performances shall


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  1  be required to pay as additional purses .375 percent of live

  2  handle for performances conducted during the period beginning

  3  on January 3 and ending March 16; .225 percent for

  4  performances conducted during the period beginning March 17

  5  and ending May 22; and .6 percent for performances conducted

  6  during the period beginning May 23 and ending January 2.

  7  Except that any thoroughbred permitholder whose total handle

  8  on live performances during the 1991-1992 state fiscal year

  9  was not greater than $34 million is not subject to this

10  additional purse payment. A permitholder authorized to conduct

11  thoroughbred racing may withhold from the handle an additional

12  amount equal to 1 percent on exotic wagering for use as

13  owners' awards, and may withhold from the handle an amount

14  equal to 2 percent on exotic wagering for use as overnight

15  purses.  No permitholder may withhold in excess of 20 percent

16  from the handle without withholding the amounts set forth in

17  this subsection.

18         (b)1.  A permitholder conducting a harness horse race

19  meet under this chapter must pay to the purse pool from the

20  takeout withheld a purse requirement that totals an amount not

21  less than 8 percent of all contributions to pari-mutuel pools

22  conducted during the race meet.  An amount not less than 7.5

23  percent of the total handle shall be paid from this purse pool

24  as purses.

25         2.  An amount not to exceed 0.5 percent of the total

26  handle on all harness horse races that are subject to the

27  purse requirement of subparagraph 1., must be available for

28  use to provide medical, dental, surgical, life, funeral, or

29  disability insurance benefits for occupational licensees who

30  work at tracks in this state at which harness horse races are

31  conducted.  Such insurance benefits must be paid from the


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  1  purse pool specified in subparagraph 1.  An annual plan for

  2  payment of insurance benefits from the purse pool, including

  3  qualifications for eligibility, must be submitted by the

  4  Florida Standardbred Breeders and Owners Association for

  5  approval to the division.  An annual report of the implemented

  6  plan shall be submitted to the division.  All records of the

  7  Florida Standardbred Breeders and Owners Association

  8  concerning the administration of the plan must be available

  9  for audit at the discretion of the division to determine that

10  the plan has been implemented and administered as authorized.

11  If the division finds that the Florida Standardbred Breeders

12  and Owners Association has not complied with the provisions of

13  this section, the division may order the association to cease

14  and desist from administering the plan and shall appoint the

15  division as temporary administrator of the plan until the

16  division reestablishes administration of the plan with the

17  association.

18         (c)  A permitholder conducting a quarter horse race

19  meet under this chapter shall pay from the takeout withheld a

20  sum not less than 6 percent of all contributions to

21  pari-mutuel pools conducted during the race meet as purses.

22         (d)  The division shall adopt reasonable rules to

23  ensure the timely and accurate payment of all amounts withheld

24  by horserace permitholders regarding the distribution of

25  purses, owners' awards, and other amounts collected for

26  payment to owners and breeders.  Each permitholder that fails

27  to pay out all moneys collected for payment to owners and

28  breeders shall, within 10 days after the end of the meet

29  during which the permitholder underpaid purses, deposit an

30  amount equal to the underpayment into a separate

31


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  1  interest-bearing account to be distributed to owners and

  2  breeders in accordance with division rules.

  3         (e)  An amount equal to 8.5 percent of the purse

  4  account generated through intertrack wagering and interstate

  5  simulcasting will be used for Florida Owners' Awards as set

  6  forth in subsection (3).  Any thoroughbred permitholder with

  7  an average blended takeout which does not exceed 20 percent

  8  and with an average daily purse distribution excluding

  9  sponsorship, entry fees, and nominations exceeding $225,000 is

10  exempt from the provisions of this paragraph subsection.

11         Section 7.  Subsection (4) of section 550.5251, Florida

12  Statutes, is amended to read:

13         550.5251  Florida thoroughbred racing; certain permits;

14  operating days.--

15         (4)  A thoroughbred racing permitholder may not begin

16  any race later than 7 p.m. However, any thoroughbred

17  permitholder in a county in which the authority for cardrooms

18  has been approved by the board of county commissioners may

19  elect not to operate a cardroom when conducting live races

20  during its current race meet and instead to receive and

21  rebroadcast out-of-state races after the hour between the

22  hours of 7 p.m. and 10 p.m. on any day during which the

23  permitholder conducts live races.  However, such permitholder

24  may not engage in both operating a cardroom and receiving or

25  rebroadcasting out-of-state races after 7 p.m.  Permitholders

26  shall be required to elect between either operating a cardroom

27  or engaging in simulcasting after 7 p.m. at the time of

28  submitting its application for its annual license pursuant to

29  this section s. 550.01215.

30         Section 8.  Subsection (11) of section 550.615, Florida

31  Statutes, is amended to read:


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  1         550.615  Intertrack wagering.--

  2         (11)  Notwithstanding any other provision of this

  3  section, any thoroughbred permitholder that conducts

  4  performances during the period beginning May 23 and ending

  5  January 2 or during the period beginning January 3 and ending

  6  March 16 must make available any live pari-mutuel event

  7  conducted and any simulcast pari-mutuel event received by such

  8  permitholder to any thoroughbred permitholder that conducts

  9  performances during the period beginning March 17 and ending

10  May 22, and such guest permitholder is authorized to accept

11  wagers on such signals.  Notwithstanding s. 550.0951(3)(c),

12  the tax on wagers accepted by the guest permitholder on such

13  events shall be 2 percent, but such amount shall be retained

14  by the host track as compensation for lost revenues and

15  purses.  At least 50 percent of the amount retained shall be

16  paid as purses at the host track. This subsection applies only

17  to thoroughbred permitholders located in any area of the state

18  where there are three or more thoroughbred permitholders

19  within 25 miles of each other.

20         Section 9.  Effective July 1, 2000, subsection (11) of

21  s. 550.615, Florida Statutes, is repealed.

22         Section 10.  Paragraphs (a) and (g) of subsection (9)

23  of section 550.6305, Florida Statutes, are amended to read:

24         550.6305  Intertrack wagering; guest track payments;

25  accounting rules.--

26         (9)  A host track that has contracted with an

27  out-of-state horse track to broadcast live races conducted at

28  such out-of-state horse track pursuant to s. 550.3551(5) may

29  broadcast such out-of-state races to any guest track and

30  accept wagers thereon in the same manner as is provided in s.

31  550.3551.


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    CS for SB 440                                  First Engrossed



  1         (a)  For purposes of this section, "net proceeds" means

  2  the amount of takeout remaining after the payment of state

  3  taxes, purses required pursuant to s. 550.0951(3)(c)1., the

  4  cost to the permitholder required to be paid to the

  5  out-of-state horse track, and breeders' awards paid to the

  6  Florida Thoroughbred Breeders' Association and the Florida

  7  Standardbred Breeders and Owners Association, to be used as

  8  set forth in s. 550.625(2)(a) and (b), and the deduction of

  9  any amount retained pursuant to s. 550.615(11).

10         (g)1.  Any thoroughbred permitholder which accepts

11  wagers on a simulcast signal must make the signal available to

12  any permitholder that is eligible to conduct intertrack

13  wagering under the provisions of ss. 550.615-550.6345.

14         2.  Any thoroughbred permitholder which accepts wagers

15  on a simulcast signal received after 6 p.m. must make such

16  signal available to any permitholder that is eligible to

17  conduct intertrack wagering under the provisions of ss.

18  550.615-550.6345, including any permitholder located as

19  specified in s. 550.615(6).  Such guest permitholders are

20  authorized to accept wagers on such simulcast signal,

21  notwithstanding any other provision of this chapter to the

22  contrary.

23         3.  Any thoroughbred permitholder which accepts wagers

24  on a simulcast signal received after 6 p.m. must make such

25  signal available to any permitholder that is eligible to

26  conduct intertrack wagering under the provisions of ss.

27  550.615-550.6345, including any permitholder located as

28  specified in s. 550.615(9).  Such guest permitholders are

29  authorized to accept wagers on such simulcast signals for a

30  number of performances not to exceed that which constitutes a

31  full schedule of live races for a quarter horse permitholder


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    CS for SB 440                                  First Engrossed



  1  pursuant to s. 550.002(11), notwithstanding any other

  2  provision of this chapter to the contrary, except that the

  3  restrictions provided in s. 550.615(9)(a) apply to wagers on

  4  such simulcast signals.

  5

  6  No thoroughbred permitholder shall be required to continue to

  7  rebroadcast a simulcast signal to any in-state permitholder if

  8  the average per performance gross receipts returned to the

  9  host permitholder over the preceding 30-day period were less

10  than $100.  Subject to the provisions of s. 550.615(4), as a

11  condition of receiving rebroadcasts of thoroughbred simulcast

12  signals under this paragraph, a guest permitholder must accept

13  intertrack wagers on all live races conducted by all

14  then-operating thoroughbred permitholders a thoroughbred

15  permitholder located in a county where there are only three

16  permits, one for thoroughbred, one for greyhound, and one for

17  jai alai.

18         Section 11.  Section 550.6308, Florida Statutes, is

19  created to read:

20         550.6308  Limited intertrack wagering license.--In

21  recognition of the economic importance of the thoroughbred

22  breeding industry to this state, its positive impact on

23  tourism, and of the importance of a permanent thoroughbred

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

25  industry, a limited license to conduct intertrack wagering is

26  established to ensure the continued viability and public

27  interest in thoroughbred breeding in Florida.

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

29  January 31 of each year, any person that is licensed to

30  conduct public sales of thoroughbred horses pursuant to s.

31  535.01, that has conducted at least 15 days of thoroughbred


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    CS for SB 440                                  First Engrossed



  1  horse sales at a permanent sales facility in this state for at

  2  least 3 consecutive years, and that has conducted at least 1

  3  day of nonwagering thoroughbred racing in this state, with a

  4  purse structure of at least $250,000 per year for 2

  5  consecutive years before such application, shall be issued a

  6  license to conduct intertrack wagering for thoroughbred racing

  7  for up to 21 days in connection with thoroughbred sales, to

  8  conduct intertrack wagering at such permanent sales facility

  9  between November 1 and May 8, to conduct intertrack wagering

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

11  at such times and on such days as any thoroughbred, jai alai,

12  or a greyhound permitholder in the same county is not

13  conducting live performances, and to conduct intertrack

14  wagering under the provisions of this subsection during the

15  weekend of the Kentucky Derby, the Preakness, the Belmont, and

16  a Breeders' Cup Meet that is conducted before November 1 and

17  after May 8, subject to conditions set forth in this section

18  but no more than one such license may be issued and no such

19  license may be issued for a facility located within 50 miles

20  of any thoroughbred permitholder's track.

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

22  license, the division shall determine which applicant shall be

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

24  shall grant the license to the applicant demonstrating

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

26  applicant has been conducting thoroughbred sales within this

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

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

29  length of time the applicant has maintained a permanent

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

31  the facility.


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    CS for SB 440                                  First Engrossed



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

  2  ss. 550.125 and 550.1815.

  3         (4)  Intertrack wagering under this section may be

  4  conducted only on thoroughbred horse racing.

  5         Section 12.  Section 550.72, Florida Statutes, is

  6  created to read:

  7         550.72  Department of State; City of Hialeah; Study of

  8  Hialeah Park; appropriation; duties and responsibilities;

  9  taxation.--

10         (1)  The Department of State, in conjunction with the

11  office of the mayor of the City of Hialeah, is hereby directed

12  to undertake a comprehensive study of the feasibility of state

13  or municipal ownership of Hialeah Park and its operation of a

14  limited race meet pursuant to this section.  All references to

15  the "Department" for purposes of this section shall mean the

16  Secretary of State.

17         (2)(a)  There is hereby appropriated the sum of

18  $185,000 from the Pari-Mutuel Wagering Trust Fund to the

19  department.  Such funds shall be expended solely and

20  exclusively for a review, analysis, and report to the Senate,

21  the House of Representatives, and the Governor in regard to

22  the feasibility of state or municipal ownership of the

23  property known as Hialeah Park located in Hialeah, Florida and

24  the pari-mutuel permit held by Hialeah, Inc.  The report shall

25  contain the following information:

26         1.  A financial analysis as to the cost of operating

27  the facility as a racetrack, including year-round maintenance

28  expenses.

29         2.  An analysis of other compatible uses for the

30  property, including, but not limited to, amusement, retail

31  shopping development, recreational use, or a museum, that


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    CS for SB 440                                  First Engrossed



  1  would operate in conjunction with a racetrack, operating a

  2  limited racing meet and simulcast program.

  3         3.  A recommendation of future revenues that the

  4  property could generate.

  5         4.  A recommendation as to its future operation and

  6  financing.

  7         5.  Such other necessary information in regard to the

  8  overall health of the thoroughbred industry as will be

  9  required to complete the analysis, review, and report to the

10  Senate, the House of Representatives, and the Governor.

11         (b)  The department shall also obtain an appraisal of

12  the land and facilities known as Hialeah Park and the

13  pari-mutuel permit held by Hialeah, Inc. utilizing the

14  information filed in accordance with the provisions of s.

15  550.125, provided the appraiser shall have no ex parte

16  communications with any party holding a pari-mutuel permit

17  until the conclusion of the appraisal, at which time the

18  appraisal shall become a public record, and available for

19  inspection by all parties.  This appraisal shall be completed

20  by November 15, 1998.

21         (c)  None of the funds appropriated pursuant to

22  paragraph (a) shall be expended by the department for any

23  salaries of employees of the department; however, nothing

24  contained herein shall be interpreted to prevent the

25  department from contracting with individuals to oversee, on

26  behalf of the department and the office of the mayor of the

27  City of Hialeah, the means to properly carry out the duties

28  and responsibilities set out in this section.

29         (d)  The analysis, review, and report shall receive at

30  least one public hearing.  A final recommendation shall be

31  filed with the Speaker of the House, the President of the


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    CS for SB 440                                  First Engrossed



  1  Senate, the Governor and the Mayor of the City of Hialeah.

  2  Such recommendation shall contain a definitive recommendation

  3  by January 31, 1999 as to the following:

  4         1.  What part of the property is determined to be

  5  necessary and essential for conducting a live racing meet in

  6  conjunction with the simulcast program.

  7         2.  The projected capital cost of purchase of the

  8  property determined in subparagraph 1. and the pari-mutuel

  9  permit.

10         3.  A recommendation as to a method of paying the

11  projected capital cost.

12         (3)  In the conduct of the duties and responsibilities

13  set out herein, the department and all employees, agents, and

14  others shall be subject to the provisions of chapter 119,

15  provided that the confidentiality of the appraisal and

16  communications with such appraiser shall be governed by

17  paragraph (b) of subsection (2) and provided the appraiser

18  shall have no ex parte communications with any party holding a

19  pari-mutuel permit until the conclusion of the appraisal at

20  which time the appraisal shall become a public record.

21         Section 13.  Sections 550.2425 and 550.655, Florida

22  Statutes, are repealed.

23         Section 14.  Except as otherwise expressly provided in

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

25

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