Senate Bill 0440e2

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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 and amending s. 550.2625(2), F.S.;

22         revising horseracing purse payment requirements

23         and purse accounts used for Florida Owners'

24         Awards; amending s. 550.5251, F.S.; revising

25         the hours 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 and subsection (6) is

25  added to said section to read:

26         550.09515  Thoroughbred horse taxes; abandoned interest

27  in a permit for nonpayment of taxes.--

28         (1)  Pari-mutuel wagering at thoroughbred horse

29  racetracks in this state is an important business enterprise,

30  and taxes derived therefrom constitute a part of the tax

31  structure which funds operation of the state. Thoroughbred


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  1  horse permitholders should pay their fair share of these taxes

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

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

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

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

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

  7  thoroughbred horse industry to be highly regulated and taxed.

  8  The state recognizes that there exist identifiable differences

  9  between thoroughbred horse permitholders based upon their

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

11  different periods during the year.

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

13  550.0951(3)(a), the tax on handle for live thoroughbred horse

14  performances shall be subject to the following:

15         1.  The tax on handle per performance for live

16  thoroughbred performances is 2.0 2.25 percent of handle for

17  performances conducted during the period beginning on January

18  3 and ending March 16; .20 .70 percent of handle for

19  performances conducted during the period beginning March 17

20  and ending May 22; and 1.25 1.5 percent of handle for

21  performances conducted during the period beginning May 23 and

22  ending January 2.

23         2.  If any thoroughbred permitholder conducts

24  performances during more than one time period or if

25  performances are conducted during more than one period at any

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

27  of the tax percentages for the periods in which performances

28  are being conducted, except:

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

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

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


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

  2  of the racing period in which the permitholders intend to

  3  operate.

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

  5  permitholder holding a license for operating any one of the

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

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

  8  operate for 10 consecutive days, a permitholder already

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

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

11  addition to the period already licensed.

12         c.  Two permitholders who operated in different periods

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

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

15  results in either permitholder or the facility of a

16  permitholder being operated in two different periods.

17

18  However, any thoroughbred permitholder whose total handle on

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

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

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

22  on live handle per performance.

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

24  23 during the state fiscal year 1992-1993, any permitholder

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

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

27  live handle per performance.  In the event this provision

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

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

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

31  thoroughbred permitholders for racing dates prior to April 26,


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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         (6)  Notwithstanding the provisions of s.

20  550.0951(3)(c), the tax on handle is 0.2 percent for

21  intertrack wagering and for intertrack wagering on

22  rebroadcasts of simulcast horseraces for a thoroughbred

23  permitholder that conducts performances during the period

24  beginning March 17 and ending May 22.  This subsection applies

25  only to thoroughbred permitholders located in any area of the

26  state where there are three or more thoroughbred permitholders

27  within 25 miles of each other.  The tax shall be deposited

28  into the General Revenue Fund.  Effective July 1, 2001, this

29  subsection is repealed.

30

31


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  1         Section 4.  Effective July 1, 2001, paragraph (a) of

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

  3  amended to read:

  4         550.09515  Thoroughbred horse taxes; abandoned interest

  5  in a permit for nonpayment of taxes.--

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

  7  550.0951(3)(a), the tax on handle for live thoroughbred horse

  8  performances shall be subject to the following:

  9         1.  The tax on handle per performance for live

10  thoroughbred performances is 2.25 2.0 percent of handle for

11  performances conducted during the period beginning on January

12  3 and ending March 16; .70 .20 percent of handle for

13  performances conducted during the period beginning March 17

14  and ending May 22; and 1.5 1.25 percent of handle for

15  performances conducted during the period beginning May 23 and

16  ending January 2.

17         2.  If any thoroughbred permitholder conducts

18  performances during more than one time period or if

19  performances are conducted during more than one period at any

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

21  of the tax percentages for the periods in which performances

22  are being conducted, except:

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

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

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

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

27  of the racing period in which the permitholders intend to

28  operate.

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

30  permitholder holding a license for operating any one of the

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


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

  2  operate for 10 consecutive days, a permitholder already

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

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

  5  addition to the period already licensed.

  6         c.  Two permitholders who operated in different periods

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

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

  9  results in either permitholder or the facility of a

10  permitholder being operated in two different periods.

11         2.  However, any thoroughbred permitholder whose total

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

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

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

15  percent on live handle per performance.

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

17  23 during the state fiscal year 1992-1993, any permitholder

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

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

20  live handle per performance.  In the event this provision

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

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

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

24  thoroughbred permitholders for racing dates prior to April 26,

25  1993, then, notwithstanding the provisions of s. 550.525(2),

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

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

28  550.2625, Florida Statutes, is amended to read:

29         550.2625  Horseracing; minimum purse requirement,

30  Florida breeders' and owners' awards.--

31


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  1         (3)  Each horseracing permitholder conducting any

  2  thoroughbred race under this chapter, including any intertrack

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

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

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

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

  7  awards as authorized in this section.  This subsection also

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

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

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

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

12  550.3551(2), the host track is required to pay 3.3 percent of

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

14  breeders' and stallion awards.  The Florida Thoroughbred

15  Breeders' Association is authorized to receive these payments

16  from the permitholders and make payments of awards earned.

17  The Florida Thoroughbred Breeders' Association has the right

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

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

20  awards and for general promotion of the industry.  The

21  permitholder shall remit these payments to the Florida

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

23  calendar month for such sums accruing during the preceding

24  calendar month and shall report such payments to the division

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

26  10-percent fee, the moneys paid by the permitholders shall be

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

28  payments together with any interest earned shall be used

29  exclusively for the payment of breeders' awards and stallion

30  awards in accordance with the following provisions:

31


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

  2  thoroughbred horse winning a stakes race to be eligible to

  3  receive a stallion award, the stallion must have been

  4  registered with the Florida Thoroughbred Breeders'

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

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

  7  standing permanently in this state during the period of time

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

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

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

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

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

13  any reason, other than exclusively for prescribed medical

14  treatment, as approved by the Florida Thoroughbred Breeders'

15  Association renders the owner or owners of the stallion

16  ineligible to receive a stallion award under any circumstances

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

18  stallion is returned to this state, all offspring sired

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

20  stallion eligible for the stallion award but only for those

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

22  Florida Thoroughbred Breeders' Association shall maintain

23  complete records showing the date the stallion arrived in this

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

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

26  whether the stallion is still standing in this state and

27  complete records showing awards earned, received, and

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

29  breeder a reasonable fee for this service.

30         Section 6.  Notwithstanding section 26 of chapter

31  96-364, Laws of Florida, subsection (2) of section 550.2625,


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

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

  3         550.2625  Horseracing; minimum purse requirement,

  4  Florida breeders' and owners' awards.--

  5         (2)  Each permitholder conducting a horserace meet is

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

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

  8  performed.

  9         (a)  A permitholder conducting a thoroughbred horse

10  race meet under this chapter must pay from the takeout

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

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

13  In addition to the 7.5 percent minimum purse payment,

14  permitholders conducting live thoroughbred performances shall

15  be required to pay as additional purses .625 .375 percent of

16  live handle for performances conducted during the period

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

18  performances conducted during the period beginning March 17

19  and ending May 22; and .85 .6 percent for performances

20  conducted during the period beginning May 23 and ending

21  January 2.  Except that any thoroughbred permitholder whose

22  total handle on live performances during the 1991-1992 state

23  fiscal year was not greater than $34 million is not subject to

24  this additional purse payment. A permitholder authorized to

25  conduct thoroughbred racing may withhold from the handle an

26  additional amount equal to 1 percent on exotic wagering for

27  use as owners' awards, and may withhold from the handle an

28  amount equal to 2 percent on exotic wagering for use as

29  overnight purses.  No permitholder may withhold in excess of

30  20 percent from the handle without withholding the amounts set

31  forth in this subsection.


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

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

  3  takeout withheld a purse requirement that totals an amount not

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

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

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

  7  as purses.

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

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

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

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

12  disability insurance benefits for occupational licensees who

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

14  conducted.  Such insurance benefits must be paid from the

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

16  payment of insurance benefits from the purse pool, including

17  qualifications for eligibility, must be submitted by the

18  Florida Standardbred Breeders and Owners Association for

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

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

21  Florida Standardbred Breeders and Owners Association

22  concerning the administration of the plan must be available

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

24  the plan has been implemented and administered as authorized.

25  If the division finds that the Florida Standardbred Breeders

26  and Owners Association has not complied with the provisions of

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

28  and desist from administering the plan and shall appoint the

29  division as temporary administrator of the plan until the

30  division reestablishes administration of the plan with the

31  association.


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  1         (c)  A permitholder conducting a quarter horse race

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

  3  sum not less than 6 percent of all contributions to

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

  5         (d)  The division shall adopt reasonable rules to

  6  ensure the timely and accurate payment of all amounts withheld

  7  by horserace permitholders regarding the distribution of

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

  9  payment to owners and breeders.  Each permitholder that fails

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

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

12  during which the permitholder underpaid purses, deposit an

13  amount equal to the underpayment into a separate

14  interest-bearing account to be distributed to owners and

15  breeders in accordance with division rules.

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

17  account generated through intertrack wagering and interstate

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

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

20  an average blended takeout which does not exceed 20 percent

21  and with an average daily purse distribution excluding

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

23  exempt from the provisions of this paragraph subsection.

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

25  Statutes, is amended to read:

26         550.5251  Florida thoroughbred racing; certain permits;

27  operating days.--

28         (4)  A thoroughbred racing permitholder may not begin

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

30  permitholder in a county in which the authority for cardrooms

31  has been approved by the board of county commissioners may


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  1  elect not to operate a cardroom when conducting live races

  2  during its current race meet and instead to receive and

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

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

  5  permitholder conducts live races.  However, such permitholder

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

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

  8  shall be required to elect between either operating a cardroom

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

10  submitting its application for its annual license pursuant to

11  this section s. 550.01215.

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

13  Statutes, is amended to read:

14         550.615  Intertrack wagering.--

15         (11)  Notwithstanding any other provision of this

16  section, any thoroughbred permitholder that conducts

17  performances during the period beginning May 23 and ending

18  January 2 must make available any live pari-mutuel event

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

20  permitholder to any thoroughbred permitholder that conducts

21  performances during the period beginning March 17 and ending

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

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

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

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

26  by the host track as compensation for lost revenues and

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

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

29  to thoroughbred permitholders located in any area of the state

30  where there are three or more thoroughbred permitholders

31  within 25 miles of each other.


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  1         Section 9.  Effective July 1, 2001, subsection (11) of

  2  s. 550.615, Florida Statutes, is repealed.

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

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

  5         550.6305  Intertrack wagering; guest track payments;

  6  accounting rules.--

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

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

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

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

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

12  550.3551.

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

14  the amount of takeout remaining after the payment of state

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

16  cost to the permitholder required to be paid to the

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

18  Florida Thoroughbred Breeders' Association and the Florida

19  Standardbred Breeders and Owners Association, to be used as

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

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

22         (g)1.  Any thoroughbred permitholder which accepts

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

24  any permitholder that is eligible to conduct intertrack

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

26         2.  Any thoroughbred permitholder which accepts wagers

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

28  signal available to any permitholder that is eligible to

29  conduct intertrack wagering under the provisions of ss.

30  550.615-550.6345, including any permitholder located as

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


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    CS for SB 440                                 Second Engrossed



  1  authorized to accept wagers on such simulcast signal,

  2  notwithstanding any other provision of this chapter to the

  3  contrary.

  4         3.  Any thoroughbred permitholder which accepts wagers

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

  6  signal available to any permitholder that is eligible to

  7  conduct intertrack wagering under the provisions of ss.

  8  550.615-550.6345, including any permitholder located as

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

10  authorized to accept wagers on such simulcast signals for a

11  number of performances not to exceed that which constitutes a

12  full schedule of live races for a quarter horse permitholder

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

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

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

16  such simulcast signals.

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18  No thoroughbred permitholder shall be required to continue to

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

20  the average per performance gross receipts returned to the

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

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

23  condition of receiving rebroadcasts of thoroughbred simulcast

24  signals under this paragraph, a guest permitholder must accept

25  intertrack wagers on all live races conducted by all

26  then-operating thoroughbred permitholders a thoroughbred

27  permitholder located in a county where there are only three

28  permits, one for thoroughbred, one for greyhound, and one for

29  jai alai.

30         Section 11.  Section 550.6308, Florida Statutes, is

31  created to read:


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    CS for SB 440                                 Second Engrossed



  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 that is licensed to

11  conduct public sales of thoroughbred horses pursuant to s.

12  535.01, that has conducted at least 15 days of thoroughbred

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

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

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

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

17  consecutive years before such application, shall be issued a

18  license to conduct intertrack wagering for thoroughbred racing

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

20  conduct intertrack wagering at such permanent sales facility

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

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

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

24  or a greyhound permitholder in the same county is not

25  conducting live performances, and to conduct intertrack

26  wagering under the provisions of this subsection during the

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

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

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

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

31


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    CS for SB 440                                 Second Engrossed



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

  2  of any 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 12.  Section 550.72, Florida Statutes, is

19  created to read:

20         550.72  Department of State; City of Hialeah; Study of

21  Hialeah Park; appropriation; duties and responsibilities;

22  taxation.--

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

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

25  to undertake a comprehensive study of the feasibility of state

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

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

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

29  Secretary of State.

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

31  $185,000 from the Pari-Mutuel Wagering Trust Fund to the


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    CS for SB 440                                 Second Engrossed



  1  department.  Such funds shall be expended solely and

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

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

  4  the feasibility of state or municipal ownership of the

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

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

  7  contain the following information:

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

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

10  expenses.

11         2.  An analysis of other compatible uses for the

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

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

14  would operate in conjunction with a racetrack, operating a

15  limited racing meet and simulcast program.

16         3.  A recommendation of future revenues that the

17  property could generate.

18         4.  A recommendation as to its future operation and

19  financing.

20         5.  Such other necessary information in regard to the

21  overall health of the thoroughbred industry as will be

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

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

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

25  the land and facilities known as Hialeah Park and the

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

27  information filed in accordance with the provisions of s.

28  550.125, provided the appraiser shall have no ex parte

29  communications with any party holding a pari-mutuel permit

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

31  appraisal shall become a public record, and available for


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    CS for SB 440                                 Second Engrossed



  1  inspection by all parties.  This appraisal shall be completed

  2  by November 15, 1998.

  3         (c)  None of the funds appropriated pursuant to

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

  5  salaries of employees of the department; however, nothing

  6  contained herein shall be interpreted to prevent the

  7  department from contracting with individuals to oversee, on

  8  behalf of the department and the office of the mayor of the

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

10  and responsibilities set out in this section.

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

12  least one public hearing.  A final recommendation shall be

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

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

15  Such recommendation shall contain a definitive recommendation

16  by January 31, 1999 as to the following:

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

18  necessary and essential for conducting a live racing meet in

19  conjunction with the simulcast program.

20         2.  The projected capital cost of purchase of the

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

22  permit.

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

24  projected capital cost.

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

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

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

28  provided that the confidentiality of the appraisal and

29  communications with such appraiser shall be governed by

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

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


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    CS for SB 440                                 Second Engrossed



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

  2  which time the appraisal shall become a public record.

  3         Section 13.  Sections 550.2425 and 550.655, Florida

  4  Statutes, are repealed.

  5         Section 14.  Except as otherwise expressly provided in

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

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