HB 1B

1	A bill to be entitled
2	An act relating to slot machine gaming; creating ch. 551,
3	F.S.; implementing s. 23, Art. X of the State
4	Constitution; authorizing slot machines and slot machine
5	gaming within certain pari-mutuel facilities located in
6	Miami-Dade and Broward Counties upon approval by a local
7	referendum; providing definitions; providing powers and
8	duties of the Division of Pari-mutuel Wagering of the
9	Department of Business and Professional Regulation, the
10	Department of Law Enforcement, and local law enforcement
11	agencies; providing for licensure to conduct slot machine
12	gaming; providing for temporary licensure; providing
13	licensing conditions on holders of thoroughbred pari-
14	mutuel wagering permits; providing for slot machine
15	licensure renewal; providing for a license fee and tax
16	rate; providing for payment procedures; providing
17	penalties; providing for slot machine occupational
18	licenses and application fees; providing penalties;
19	prohibiting certain relationships; prohibiting certain
20	acts and providing penalties; providing an exception to
21	prohibitions relating to slot machines; providing for the
22	exclusion of certain persons from facilities; prohibiting
23	persons under 21 years of age from slot machine gaming
24	areas or playing slot machines; providing requirements for
25	slot machine gaming areas; providing for days and hours of
26	operation; providing penalties; providing a compulsive or
27	addictive gambling prevention program; providing for
28	funding; providing for a caterer's license; specifying
29	prohibited activities and devices; prohibiting automated
30	teller machines on the property of a slot machine
31	licensee; providing for rulemaking; amending s. 849.15,
32	F.S.; providing for transportation of certain gaming
33	devices in accordance with federal law; amending s.
34	895.02, F.S.; providing that specified violations related
35	to slot machine gaming constitute racketeering activity;
36	providing that certain debt incurred in violation of
37	specified provisions relating to slot machine gaming
38	constitutes unlawful debt; providing for preemption;
39	authorizing additional positions and providing
40	appropriations; providing for use of funds; amending s.
41	215.22, F.S.; exempting taxes imposed on slot machine
42	revenues from specified service charges; providing for use
43	of certain unreserved funds in the Pari-mutuel Wagering
44	Trust Fund; providing for repayment of such funds;
45	providing an effective date.
46
47	Be It Enacted by the Legislature of the State of Florida:
48
49	Section 1.  Chapter 551, Florida Statutes, consisting of
50	sections 551.101, 551.102, 551.103, 551.104, 551.1045, 551.105,
51	551.106, 551.107, 551.108, 551.109, 551.111, 551.112, 551.113,
52	551.114, 551.116, 551.117, 551.118, 551.119, 551.121, and
53	551.122, is created to read:
54	CHAPTER 551
55	SLOT MACHINES
56	551.101  Slot machine gaming authorized.--Any licensed
57	pari-mutuel facility located in Miami-Dade County or Broward
58	County existing at the time of adoption of s. 23, Art. X of the
59	State Constitution that has conducted live racing or games
60	during calendar years 2002 and 2003 may possess slot machines
61	and conduct slot machine gaming at the location where the pari-
62	mutuel permitholder is authorized to conduct pari-mutuel
63	wagering activities pursuant to such permitholder's valid pari-
64	mutuel permit provided that a majority of voters in a countywide
65	referendum have approved slot machines at such facility in the
66	respective county. Notwithstanding any other provision of law,
67	it is not a crime for a person to participate in slot machine
68	gaming at a pari-mutuel facility licensed to possess and conduct
69	slot machine gaming or to participate in slot machine gaming
70	described in this chapter.
71	551.102  Definitions.--As used in this chapter, the term:
72	(1)  "Distributor" means any person who sells, leases, or
73	offers or otherwise provides, distributes, or services any slot
74	machine or associated equipment for use or play of slot machines
75	in this state. A manufacturer may be a distributor within the
76	state.
77	(2)  "Designated slot machine gaming area" means the area
78	or areas of a facility of a slot machine licensee in which slot
79	machine gaming may be conducted in accordance with the
80	provisions of this chapter.
81	(3)  "Division" means the Division of Pari-mutuel Wagering
82	of the Department of Business and Professional Regulation.
83	(4)  "Eligible facility" means any licensed pari-mutuel
84	facility located in Miami-Dade County or Broward County existing
85	at the time of adoption of s. 23, Art. X of the State
86	Constitution that has conducted live racing or games during
87	calendar years 2002 and 2003 and has been approved by a majority
88	of voters in a countywide referendum to have slot machines at
89	such facility in the respective county.
90	(5)  "Manufacturer" means any person who manufactures,
91	builds, rebuilds, fabricates, assembles, produces, programs,
92	designs, or otherwise makes modifications to any slot machine or
93	associated equipment for use or play of slot machines in this
94	state for gaming purposes. A manufacturer may be a distributor
95	within the state.
96	(6)  "Progressive system" means a computerized system
97	linking slot machines in one or more licensed facilities within
98	this state and offering one or more common progressive payouts
99	based on the amounts wagered.
100	(7)  "Slot machine" means any mechanical or electrical
101	contrivance, terminal that may or may not be capable of
102	downloading slot games from a central server system, machine, or
103	other device that, upon insertion of a coin, bill, ticket,
104	token, or similar object or upon payment of any consideration
105	whatsoever, including the use of any electronic payment system
106	except a credit card or debit card, is available to play or
107	operate, the play or operation of which, whether by reason of
108	skill or application of the element of chance or both, may
109	deliver or entitle the person or persons playing or operating
110	the contrivance, terminal, machine, or other device to receive
111	cash, billets, tickets, tokens, or electronic credits to be
112	exchanged for cash or to receive merchandise or anything of
113	value whatsoever, whether the payoff is made automatically from
114	the machine or manually. The term includes associated equipment
115	necessary to conduct the operation of the contrivance, terminal,
116	machine, or other device. Slot machines may use spinning reels,
117	video displays, or both. A slot machine is not a "coin-operated
118	amusement machine" as defined in s. 212.02(24) or an amusement
119	game or machine as described in s. 849.161, and slot machines
120	are not subject to the tax imposed by s. 212.05(1)(h).
121	(8)  "Slot machine facility" means a facility at which slot
122	machines as defined in this chapter are lawfully offered for
123	play.
124	(9)  "Slot machine license" means a license issued by the
125	division authorizing a pari-mutuel permitholder to place and
126	operate slot machines as provided by s. 23, Art. X of the State
127	Constitution, the provisions of this chapter, and division
128	rules.
129	(10)  "Slot machine licensee" means a pari-mutuel
130	permitholder who holds a license issued by the division pursuant
131	to this chapter that authorizes such person to possess a slot
132	machine within facilities specified in s. 23, Art. X of the
133	State Constitution and allows slot machine gaming.
134	(11)  "Slot machine operator" means a person employed or
135	contracted by the owner of a licensed facility to conduct slot
136	machine gaming at that licensed facility.
137	(12)  "Slot machine revenues" means the total of all cash
138	and property received by the slot machine licensee from the
139	operation of slot machines less the amount of cash, cash
140	equivalents, credits, and prizes paid to winners of slot machine
141	gaming.
142	551.103  Powers and duties of the division and law
143	enforcement.--
144	(1)  The division shall adopt, pursuant to the provisions
145	of ss. 120.536(1) and 120.54, all rules necessary to implement,
146	administer, and regulate slot machine gaming as authorized in
147	this chapter. Such rules must include:
148	(a)  Procedures for applying for a slot machine license and
149	renewal of a slot machine license.
150	(b)  Technical requirements and the qualifications
151	contained in this chapter that are necessary to receive a slot
152	machine license or slot machine occupational license.
153	(c)  Procedures to scientifically test and technically
154	evaluate slot machines for compliance with this chapter. The
155	division may contract with an independent testing laboratory to
156	conduct any necessary testing under this section. The
157	independent testing laboratory must have a national reputation
158	which is demonstrably competent and qualified to scientifically
159	test and evaluate slot machines for compliance with this chapter
160	and to otherwise perform the functions assigned to it in this
161	chapter. An independent testing laboratory shall not be owned or
162	controlled by a licensee. The use of an independent testing
163	laboratory for any purpose related to the conduct of slot
164	machine gaming by a licensee under this chapter shall be made
165	from a list of one or more laboratories approved by the
166	division.
167	(d)  Procedures relating to slot machine revenues,
168	including verifying and accounting for such revenues, auditing,
169	and collecting taxes and fees consistent with this chapter.
170	(e)  Procedures for regulating, managing, and auditing the
171	operation, financial data, and program information relating to
172	slot machine gaming that allow the division and the Department
173	of Law Enforcement to audit the operation, financial data, and
174	program information of a slot machine licensee, as required by
175	the division or the Department of Law Enforcement, and provide
176	the division and the Department of Law Enforcement with the
177	ability to monitor, at any time on a real-time basis, wagering
178	patterns, payouts, tax collection, and compliance with any rules
179	adopted by the division for the regulation and control of slot
180	machines operated under this chapter. Such continuous and
181	complete access, at any time on a real-time basis, shall include
182	the ability of either the division or the Department of Law
183	Enforcement to suspend play immediately on particular slot
184	machines if monitoring of the facilities-based computer system
185	indicates possible tampering or manipulation of those slot
186	machines or the ability to suspend play immediately of the
187	entire operation if the tampering or manipulation is of the
188	computer system itself. The division shall notify the Department
189	of Law Enforcement or the Department of Law Enforcement shall
190	notify the division, as appropriate, whenever there is a
191	suspension of play under this paragraph. The division and the
192	Department of Law Enforcement shall exchange such information
193	necessary for and cooperate in the investigation of the
194	circumstances requiring suspension of play under this paragraph.
195	(f)  Procedures for requiring each licensee at his or her
196	own cost and expense to supply the division with a bond having
197	the penal sum of $2 million payable to the Governor and his or
198	her successors in office for the licensee's first year of slot
199	machine operations. Annually thereafter, the licensee shall file
200	a bond having a penal sum that is determined each year by the
201	division pursuant to rules adopted by the division and that
202	approximates the anticipated state revenues from the licensee's
203	slot machine operation; however, the bond may not in any case be
204	less than $2 million. Any bond shall be issued by a surety or
205	sureties approved by the division and the Chief Financial
206	Officer, conditioned to faithfully make the payments to the
207	Chief Financial Officer in his or her capacity as treasurer of
208	the division. The licensee shall be required to keep its books
209	and records and make reports as provided in this chapter and to
210	conduct its slot machine operations in conformity with this
211	chapter and all other provisions of law. Such bond shall be
212	separate and distinct from the bond required in s. 550.125.
213	(g)  Procedures for requiring licensees to maintain
214	specified records and submit any data, information, record, or
215	report, including financial and income records, required by this
216	chapter or determined by the division to be necessary to the
217	proper implementation and enforcement of this chapter.
218	(h)  A requirement that the payout percentage of a slot
219	machine be no less than 85 percent.
220	(i)  Minimum standards for security of the facilities,
221	including floor plans, security cameras, and other security
222	equipment.
223	(2)  The division shall conduct such investigations
224	necessary to fulfill its responsibilities under the provisions
225	of this chapter.
226	(3)  The Department of Law Enforcement and local law
227	enforcement agencies shall have concurrent jurisdiction to
228	investigate criminal violations of this chapter and may
229	investigate any other criminal violation of law occurring at the
230	facilities of a slot machine licensee, and such investigations
231	may be conducted in conjunction with the appropriate state
232	attorney.
233	(4)(a)  The division, the Department of Law Enforcement,
234	and local law enforcement agencies shall have unrestricted
235	access to the slot machine licensee's facility at all times and
236	shall require of each slot machine licensee strict compliance
237	with the laws of this state relating to the transaction of such
238	business. The division, the Department of Law Enforcement, and
239	local law enforcement agencies may:
240	1.  Inspect and examine premises where slot machines are
241	offered for play.
242	2.  Inspect slot machines and related equipment and
243	supplies.
244	(b)  In addition, the division may:
245	1.  Collect taxes, assessments, fees, and penalties.
246	2.  Deny, revoke, suspend, or place conditions on the
247	license of a person who violates any provision of this chapter
248	or rule adopted pursuant thereto.
249	(5)  The division shall revoke or suspend the license of
250	any person who is no longer qualified or who is found, after
251	receiving a license, to have been unqualified at the time of
252	application for the license.
253	(6)  This section does not:
254	(a)  Prohibit the Department of Law Enforcement or any law
255	enforcement authority whose jurisdiction includes a licensed
256	facility from conducting investigations of criminal activities
257	occurring at the facility of the slot machine licensee;
258	(b)  Restrict access to the slot machine licensee's
259	facility by the Department of Law Enforcement or any local law
260	enforcement authority whose jurisdiction includes the slot
261	machine licensee's facility; or
262	(c)  Restrict access by the Department of Law Enforcement
263	or local law enforcement authorities to information and records
264	necessary to the investigation of criminal activity that are
265	contained within the slot machine licensee's facility.
266	551.104  License to conduct slot machine gaming.--
267	(1)  Upon application and a finding by the division after
268	investigation that the application is complete and the applicant
269	is qualified and payment of the initial license fee, the
270	division may issue a license to conduct slot machine gaming in
271	the designated slot machine gaming area of the eligible
272	facility. Once licensed, slot machine gaming may be conducted
273	subject to the requirements of this chapter and rules adopted
274	pursuant thereto.
275	(2)  An application may be approved by the division only
276	after the voters of the county where the applicant's facility is
277	located have authorized by referendum slot machines within pari-
278	mutuel facilities in that county as specified in s. 23, Art. X
279	of the State Constitution.
280	(3)  A slot machine license may be issued only to a
281	licensed pari-mutuel permitholder, and slot machine gaming may
282	be conducted only at the eligible facility at which the
283	permitholder is authorized under its valid pari-mutuel wagering
284	permit to conduct pari-mutuel wagering activities.
285	(4)  As a condition of licensure and to maintain continued
286	authority for the conduct of slot machine gaming, the slot
287	machine licensee shall:
288	(a)  Continue to be in compliance with this chapter.
289	(b)  Continue to be in compliance with chapter 550, where
290	applicable, and maintain the pari-mutuel permit and license in
291	good standing pursuant to the provisions of chapter 550.
292	Notwithstanding any contrary provision of law and in order to
293	expedite the operation of slot machines at eligible facilities,
294	any eligible facility shall be entitled within 60 days after the
295	effective date of this act to amend its 2006-2007 pari-mutuel
296	wagering operating license issued by the division under ss.
297	550.0115 and 550.01215. The division shall issue a new license
298	to the eligible facility to effectuate any approved change.
299	(c)  Conduct no fewer than a full schedule of live racing
300	or games as defined in s. 550.002(11). A permitholder's
301	responsibility to conduct such number of live races or games
302	shall be reduced by the number of races or games that could not
303	be conducted due to the direct result of fire, war, hurricane,
304	or other disaster or event beyond the control of the
305	permitholder.
306	(d)  Upon approval of any changes relating to the pari-
307	mutuel permit by the division, be responsible for providing
308	appropriate current and accurate documentation on a timely basis
309	to the division in order to continue the slot machine license in
310	good standing. Changes in ownership or interest of a slot
311	machine license of 5 percent or more of the stock or other
312	evidence of ownership or equity in the slot machine license or
313	any parent corporation or other business entity that in any way
314	owns or controls the slot machine license shall be approved by
315	the division prior to such change, unless the owner is an
316	existing holder of that license who was previously approved by
317	the division. Changes in ownership or interest of a slot machine
318	license of less than 5 percent, unless such change results in a
319	cumulative total of 5 percent or more, shall be reported to the
320	division within 20 days after the change. The division may then
321	conduct an investigation to ensure that the license is properly
322	updated to show the change in ownership or interest. No
323	reporting is required if the person is holding 5 percent or less
324	equity or securities of a corporate owner of the slot machine
325	licensee that has its securities registered pursuant to s. 12 of
326	the Securities Exchange Act of 1934, 15 U.S.C. ss. 78a-78kk, and
327	if such corporation or entity files with the United States
328	Securities and Exchange Commission the reports required by s. 13
329	of that act or if the securities of the corporation or entity
330	are regularly traded on an established securities market in the
331	United States. A change in ownership or interest of less than 5
332	percent which results in a cumulative ownership or interest of 5
333	percent or more shall be approved by the division prior to such
334	change unless the owner is an existing holder of the license who
335	was previously approved by the division.
336	(e)  Allow the division and the Department of Law
337	Enforcement unrestricted access to and right of inspection of
338	facilities of a slot machine licensee in which any activity
339	relative to the conduct of slot machine gaming is conducted.
340	(f)  Ensure that the facilities-based computer system that
341	the licensee will use for operational and accounting functions
342	of the slot machine facility is specifically structured to
343	facilitate regulatory oversight. The facilities-based computer
344	system shall be designed to provide the division and the
345	Department of Law Enforcement with the ability to monitor, at
346	any time on a real-time basis, the wagering patterns, payouts,
347	tax collection, and such other operations as necessary to
348	determine whether the facility is in compliance with statutory
349	provisions and rules adopted by the division for the regulation
350	and control of slot machine gaming. The division and the
351	Department of Law Enforcement shall have complete and continuous
352	access to this system. Such access shall include the ability of
353	either the division or the Department of Law Enforcement to
354	suspend play immediately on particular slot machines if
355	monitoring of the system indicates possible tampering or
356	manipulation of those slot machines or the ability to suspend
357	play immediately of the entire operation if the tampering or
358	manipulation is of the computer system itself. The computer
359	system shall be reviewed and approved by the division to ensure
360	necessary access, security, and functionality. The division may
361	adopt rules to provide for the approval process.
362	(g)  Ensure that each slot machine is protected from
363	manipulation or tampering to affect the random probabilities of
364	winning plays. The division or the Department of Law Enforcement
365	shall have the authority to suspend play upon reasonable
366	suspicion of any manipulation or tampering. When play has been
367	suspended on any slot machine, the division or the Department of
368	Law Enforcement may examine any slot machine to determine
369	whether the machine has been tampered with or manipulated and
370	whether the machine should be returned to operation.
371	(h)  Submit a security plan, including the facilities'
372	floor plan, the locations of security cameras, and a listing of
373	all security equipment that is capable of observing and
374	electronically recording activities being conducted in the
375	facilities of the slot machine licensee. The security plan must
376	meet the minimum security requirements as determined by the
377	division under s. 551.103(1)(i) and be implemented prior to
378	operation of slot machine gaming. The slot machine licensee's
379	facilities must adhere to the security plan at all times. Any
380	changes to the security plan must be submitted by the licensee
381	to the division prior to implementation. The division shall
382	furnish copies of the security plan and changes in the plan to
383	the Department of Law Enforcement.
384	(i)  Create and file with the division a written policy
385	for:
386	1.  Creating opportunities to purchase from vendors in this
387	state, including minority vendors.
388	2.  Creating opportunities for employment of residents of
389	this state, including minority residents.
390	3.  Ensuring opportunities for construction services from
391	minority contractors.
392	4.  Ensuring that opportunities for employment are offered
393	on an equal, nondiscriminatory basis.
394	5.  Training for employees on responsible gaming and
395	working with a compulsive or addictive gambling prevention
396	program to further its purposes as provided for in s. 551.118.
397
398	The slot machine licensee shall use the Internet-based job-
399	listing system of the Agency for Workforce Innovation in
400	advertising employment opportunities. Beginning in June 2007,
401	each slot machine licensee shall provide an annual report to the
402	division containing information indicating compliance with this
403	paragraph in regard to minority persons.
404	(j)  Ensure that the payout percentage of a slot machine is
405	no less than 85 percent.
406	(5)  A slot machine license is not transferable.
407	(6)  A slot machine licensee shall keep and maintain
408	permanent daily records of its slot machine operation and shall
409	maintain such records for a period of not less than 5 years.
410	These records must include all financial transactions and
411	contain sufficient detail to determine compliance with the
412	requirements of this chapter. All records shall be available for
413	audit and inspection by the division, the Department of Law
414	Enforcement, or other law enforcement agencies during the
415	licensee's regular business hours.
416	(7)  A slot machine licensee shall file with the division a
417	monthly report containing the required records of such slot
418	machine operation. The required reports shall be submitted on
419	forms prescribed by the division and shall be due at the same
420	time as the monthly pari-mutuel reports are due to the division,
421	and the reports shall be deemed public records once filed.
422	(8)  A slot machine licensee shall file with the division
423	an audit of the receipt and distribution of all slot machine
424	revenues provided by an independent certified public accountant
425	verifying compliance with all financial and auditing provisions
426	of this chapter and the associated rules adopted under this
427	chapter. The audit must include verification of compliance with
428	all statutes and rules regarding all required records of slot
429	machine operations. Such audit shall be filed within 60 days
430	after the completion of the permitholder's pari-mutuel meet.
431	(9)  The division may share any information with the
432	Department of Law Enforcement, any other law enforcement agency
433	having jurisdiction over slot machine gaming or pari-mutuel
434	activities, or any other state or federal law enforcement agency
435	the division or the Department of Law Enforcement deems
436	appropriate. Any law enforcement agency having jurisdiction over
437	slot machine gaming or pari-mutuel activities may share any
438	information obtained or developed by it with the division.
439	(10)(a)  No slot machine license or renewal thereof shall
440	be issued to an applicant holding a permit under chapter 550 to
441	conduct pari-mutuel wagering meets of thoroughbred racing unless
442	the applicant has on file with the division a binding written
443	agreement between the applicant and the Florida Horsemen's
444	Benevolent and Protective Association, Inc., governing the
445	payment of purses on live thoroughbred races conducted at the
446	licensee's pari-mutuel facility. In addition, no slot machine
447	license or renewal thereof shall be issued to such an applicant
448	unless the applicant has on file with the division a binding
449	written agreement between the applicant and the Florida
450	Thoroughbred Breeders' Association, Inc., governing the payment
451	of breeders', stallion, and special racing awards on live
452	thoroughbred races conducted at the licensee's pari-mutuel
453	facility. The agreement governing purses and the agreement
454	governing awards may direct the payment of such purses and
455	awards from revenues generated by any wagering or gaming the
456	applicant is authorized to conduct under Florida law. All purses
457	and awards shall be subject to the terms of chapter 550. All
458	sums for breeders', stallion, and special racing awards shall be
459	remitted monthly to the Florida Thoroughbred Breeders'
460	Association, Inc., for the payment of awards subject to the
461	administrative fee authorized in s. 550.2625(3).
462	(b)  The division shall suspend a slot machine license if
463	one or more of the agreements required under paragraph (a) are
464	terminated or otherwise cease to operate or if the division
465	determines that the licensee is materially failing to comply
466	with the terms of such an agreement. Any such suspension shall
467	take place in accordance with chapter 120.
468	(c)1.  If an agreement required under paragraph (a) cannot
469	be reached prior to the initial issuance of the slot machine
470	license, either party may request arbitration or, in the case of
471	a renewal, if an agreement required under paragraph (a) is not
472	in place 120 days prior to the scheduled expiration date of the
473	slot machine license, the applicant shall immediately ask the
474	American Arbitration Association to furnish a list of 11
475	arbitrators, each of whom shall have at least 5 years of
476	commercial arbitration experience and no financial interest in
477	or prior relationship with any of the parties or their
478	affiliated or related entities or principals. Each required
479	party to the agreement shall select a single arbitrator from the
480	list provided by the American Arbitration Association within 10
481	days of receipt, and the individuals so selected shall choose
482	one additional arbitrator from the list within the next 10 days.
483	2.  If an agreement required under paragraph (a) is not in
484	place 60 days after the request under subparagraph 1. in the
485	case of an initial slot machine license or, in the case of a
486	renewal, 60 days prior to the scheduled expiration date of the
487	slot machine license, the matter shall be immediately submitted
488	to mandatory binding arbitration to resolve the disagreement
489	between the parties. The three arbitrators selected pursuant to
490	subparagraph 1. shall constitute the panel that shall arbitrate
491	the dispute between the parties pursuant to the American
492	Arbitration Association Commercial Arbitration Rules and chapter
493	682.
494	3.  At the conclusion of the proceedings, which shall be no
495	later than 90 days after the request under subparagraph 1. in
496	the case of an initial slot machine license or, in the case of a
497	renewal, 30 days prior to the scheduled expiration date of the
498	slot machine license, the arbitration panel shall present to the
499	parties a proposed agreement that the majority of the panel
500	believes equitably balances the rights, interests, obligations,
501	and reasonable expectations of the parties. The parties shall
502	immediately enter into such agreement, which shall satisfy the
503	requirements of paragraph (a) and permit issuance of the pending
504	annual slot machine license or renewal. The agreement produced
505	by the arbitration panel under this subparagraph shall be
506	effective until the last day of the license or renewal period or
507	until the parties enter into a different agreement. Each party
508	shall pay its respective costs of arbitration and shall pay one-
509	half of the costs of the arbitration panel, unless the parties
510	otherwise agree. If the agreement produced by the arbitration
511	panel under this subparagraph remains in place 120 days prior to
512	the scheduled issuance of the next annual license renewal, then
513	the arbitration process established in this paragraph will begin
514	again.
515	4.  In the event that neither of the agreements required
516	under paragraph (a) are in place by the deadlines established in
517	this paragraph, arbitration regarding each agreement will
518	proceed independently, with separate lists of arbitrators,
519	arbitration panels, arbitration proceedings, and resulting
520	agreements.
521	5.  With respect to the agreement required under paragraph
522	(a) governing the payment of purses, the arbitration and
523	resulting agreement called for under this paragraph shall be
524	limited to the payment of purses from slot machine revenues
525	only.
526	(d)  If any provision of this subsection or its application
527	to any person or circumstance is held invalid, the invalidity
528	does not affect other provisions or applications of this
529	subsection or chapter which can be given effect without the
530	invalid provision or application, and to this end the provisions
531	of this subsection are severable.
532	551.1045  Temporary licenses.--
533	(1)(a)  After 180 days following the effective date of this
534	act, if the division has not adopted rules to implement the
535	provisions of this chapter that allow for the issuance of slot
536	machine licenses within such 180 days, the division shall issue
537	a temporary slot machine license to an applicant if the
538	applicant holds a valid pari-mutuel permit in good standing
539	under chapter 550, the applicant's ownership interests have been
540	previously approved as provided in chapter 550, and the
541	applicant has conducted live racing or games during the calendar
542	years 2002 and 2003 and has paid the license fee provided in s.
543	551.106(1). The slot machine license will permit the licensee to
544	conduct slot machine gaming in the designated slot machine
545	gaming areas of the eligible facility.
546	(b)  The temporary license is valid until the division has
547	adopted rules implementing the provisions of this chapter and
548	taken final action on the filed application under its final
549	adopted rules. Once the division has adopted rules implementing
550	the provisions of this chapter, it shall complete review of any
551	filed application and shall issue a license under s. 551.104 if
552	the licensee meets the requirements of this chapter and rules
553	adopted by the division.
554	(2)(a)  A manufacturer or distributor of slot machines who
555	has applied for a license under s. 551.107 shall be issued a
556	temporary business occupational license if it holds a valid
557	license to manufacture or distribute slot machines in a state
558	where gaming is lawful.
559	(b)  The temporary license is valid until the division has
560	adopted rules implementing the provisions of this chapter and
561	taken final action on the filed application under its final
562	adopted rules. Once the division has adopted rules implementing
563	the provisions of this chapter, it shall complete review of any
564	filed application and shall issue a license under s. 551.107 if
565	the licensee meets the requirements of this chapter and rules
566	adopted by the division.
567	(3)  A temporary license issued under this section is
568	nontransferable. Any temporary license issued under this section
569	shall be valid during the pendency of any challenge to the
570	rules.
571	551.105  Slot machine license renewal.--
572	(1)  Slot machine licenses shall be effective for 1 year
573	after issuance and shall be renewed annually. The application
574	for renewal must contain all revisions to the information
575	submitted in the prior year's application that are necessary to
576	maintain such information as both accurate and current.
577	(2)  The applicant for renewal shall attest that any
578	information changes do not affect the applicant's qualifications
579	for license renewal.
580	(3)  Upon determination by the division that the
581	application for renewal is complete and qualifications have been
582	met, including payment of the renewal fee, the slot machine
583	license shall be renewed annually.
584	551.106  License fee; tax rate; penalties.--
585	(1)  LICENSE FEE.--
586	(a)  Upon submission of the initial application for a slot
587	machine license and annually thereafter upon submission of an
588	application for renewal of the slot machine license, the
589	licensee must pay to the division a nonrefundable license fee of
590	$3 million. The license fee shall be deposited into the Pari-
591	mutuel Wagering Trust Fund of the Department of Business and
592	Professional Regulation to be used by the division and the
593	Department of Law Enforcement for investigations, regulation of
594	slot machine gaming, and enforcement of slot machine gaming
595	provisions under this chapter. These payments shall be accounted
596	for separately from taxes or fees paid pursuant to the
597	provisions of chapter 550.
598	(b)  Prior to January 1, 2007, the division shall evaluate
599	the license fee and shall make recommendations to the President
600	of the Senate and the Speaker of the House of Representatives
601	regarding the optimum level of slot machine license fees in
602	order to adequately support the slot machine regulatory program.
603	(2)  TAX ON SLOT MACHINE REVENUES.--
604	(a)  The tax rate on slot machine revenues at each facility
605	shall be 50 percent.
606	(b)  The slot machine revenue tax imposed by this section
607	shall be paid to the division for deposit into the Pari-mutuel
608	Wagering Trust Fund for immediate transfer by the Chief
609	Financial Officer for deposit into the Educational Enhancement
610	Trust Fund of the Department of Education. Any interest earnings
611	on the tax revenues shall also be transferred to the Educational
612	Enhancement Trust Fund.
613	(c)  Funds transferred to the Educational Enhancement Trust
614	Fund under paragraph (b) shall be used to supplement public
615	education funding statewide and shall not be used for recurring
616	appropriations.
617	(3)  PAYMENT AND DISPOSITION OF TAXES.--Payment for the tax
618	on slot machines revenues imposed by this section shall be paid
619	to the division. The division shall deposit these sums with the
620	Chief Financial Officer, to the credit of the Pari-mutuel
621	Wagering Trust Fund. The slot machine licensee shall remit to
622	the division payment for the tax on slot machine revenues. Such
623	payments shall be remitted by 3 p.m. Wednesday of each week for
624	taxes imposed and collected for the preceding week ending on
625	Sunday. The slot machine licensee shall file a report under oath
626	by the 5th day of each calendar month for all taxes remitted
627	during the preceding calendar month. Such payments shall be
628	accompanied by a report under oath showing all slot machine
629	gaming activities for the preceding calendar month and such
630	other information as may be prescribed by the division.
631	(4)  FAILURE TO PAY TAX; PENALTIES.--A slot machine
632	licensee who fails to make tax payments as required under this
633	section is subject to an administrative penalty of up to $10,000
634	for each day the tax payment is not remitted. All administrative
635	penalties imposed and collected shall be deposited into the
636	Pari-mutuel Wagering Trust Fund of the Department of Business
637	and Professional Regulation. If any slot machine licensee fails
638	to pay penalties imposed by order of the division under this
639	subsection, the division may suspend, revoke, or refuse to renew
640	the license of the slot machine licensee.
641	(5)  SUBMISSION OF FUNDS.--The division may require slot
642	machine licensees to remit taxes, fees, fines, and assessments
643	by electronic funds transfer.
644	551.107  Slot machine occupational license; findings;
645	application; fee.--
646	(1)  The Legislature finds that individuals and entities
647	that are licensed under this section require heightened state
648	scrutiny, including the submission by the individual licensees
649	or persons associated with the entities described in this
650	chapter of fingerprints for a criminal history record check.
651	(2)(a)  The following slot machine occupational licenses
652	shall be issued to persons or entities that, by virtue of the
653	position they hold, might be granted access to slot machine
654	gaming areas or to any other person or entity in one of the
655	following categories:
656	1.  General occupational licenses for general employees,
657	including food service, maintenance, and other similar service
658	and support employees having access to the slot machine gaming
659	area.
660	2.  Professional occupational licenses for any person,
661	proprietorship, partnership, corporation, or other entity that
662	is authorized by a slot machine licensee to manage, oversee, or
663	otherwise control daily operations as a slot machine manager, a
664	floor supervisor, security personnel, or any other similar
665	position of oversight of gaming operations.
666	3.  Business occupational licenses for any slot machine
667	management company or company associated with slot machine
668	gaming, any person who manufactures, distributes, or sells slot
669	machines, slot machine paraphernalia, or other associated
670	equipment to slot machine licensees, any company that sells or
671	provides goods or services associated with slot machine gaming
672	to slot machine licensees, or any person not an employee of the
673	slot machine licensee who provides maintenance, repair, or
674	upgrades or otherwise services a slot machine or other slot
675	machine equipment.
676	(b)  Notwithstanding any provision of law to the contrary,
677	a pari-mutuel occupational licensee holding a currently valid
678	pari-mutuel occupational license is eligible to act as a slot
679	machine occupational licensee upon the effective date of this
680	act until such time as rules have been adopted and such pari-
681	mutuel occupational licensee has been provided a reasonable
682	opportunity to comply with the rules.
683	(c)  Slot machine occupational licenses are not
684	transferable.
685	(3)  A slot machine licensee may not employ or otherwise
686	allow a person to work at a licensed facility unless such person
687	holds the appropriate valid occupational license. A slot machine
688	licensee may not contract or otherwise do business with a
689	business required to hold a slot machine occupational license
690	unless the business holds such a license. A slot machine
691	licensee may not employ or otherwise allow a person to work in a
692	supervisory or management professional level at a licensed
693	facility unless such person holds a valid slot machine
694	occupational license. All slot machine occupational licensees,
695	while present in slot machine gaming areas, shall display on
696	their persons their occupational license identification cards.
697	(4)(a)  A person seeking a slot machine occupational
698	license or renewal thereof shall make application on forms
699	prescribed by the division and include payment of the
700	appropriate application fee. Initial and renewal applications
701	for slot machine occupational licenses must contain all
702	information that the division, by rule, determines is required
703	to ensure eligibility.
704	(b)  The division shall establish, by rule, a schedule for
705	the annual renewal of slot machine occupational licenses.
706	(c)  Pursuant to rules adopted by the division, any person
707	may apply for and, if qualified, be issued a slot machine
708	occupational license valid for a period of 3 years upon payment
709	of the full occupational license fee for each of the 3 years for
710	which the license is issued. The slot machine occupational
711	license is valid during its specified term at any licensed
712	facility where slot machine gaming is authorized to be
713	conducted.
714	(d)  The slot machine occupational license fee for initial
715	application and annual renewal shall be determined by rule of
716	the division but may not exceed $50 for a general or
717	professional occupational license for an employee of the slot
718	machine licensee or $1,000 for a business occupational license
719	for nonemployees of the licensee providing goods or services to
720	the slot machine licensee. License fees for general occupational
721	licensees shall be paid by the slot machine licensee. Failure to
722	pay the required fee constitutes grounds for disciplinary action
723	by the division against the slot machine licensee, but it is not
724	a violation of this chapter or rules of the division by the
725	general occupational licensee and does not prohibit the initial
726	issuance or the renewal of the general occupational license.
727	(5)  The division may:
728	(a)  Deny an application for, or revoke, suspend, or place
729	conditions or restrictions on, a license of a person or entity
730	that has been refused a license by any other state gaming
731	commission, governmental department, agency, or other authority
732	exercising regulatory jurisdiction over the gaming of another
733	state or jurisdiction; or
734	(b)  Deny an application for, or suspend or place
735	conditions on, a license of any person or entity that is under
736	suspension or has unpaid fines in another state or jurisdiction.
737	(6)(a)  The division may deny, suspend, revoke, or refuse
738	to renew any slot machine occupational license if the applicant
739	for such license or the licensee has violated the provisions of
740	this chapter or the rules of the division governing the conduct
741	of persons connected with slot machine gaming. In addition, the
742	division may deny, suspend, revoke, or refuse to renew any slot
743	machine occupational license if the applicant for such license
744	or the licensee has been convicted in this state, in any other
745	state, or under the laws of the United States of a capital
746	felony, a felony, or an offense in any other state that would be
747	a felony under the laws of this state involving arson;
748	trafficking in, conspiracy to traffic in, smuggling, importing,
749	conspiracy to smuggle or import, or delivery, sale, or
750	distribution of a controlled substance; racketeering; or a crime
751	involving a lack of good moral character, or has had a gaming
752	license revoked by this state or any other jurisdiction for any
753	gaming-related offense.
754	(b)  The division may deny, revoke, or refuse to renew any
755	slot machine occupational license if the applicant for such
756	license or the licensee has been convicted of a felony or
757	misdemeanor in this state, in any other state, or under the laws
758	of the United States if such felony or misdemeanor is related to
759	gambling or bookmaking as described in s. 849.25.
760	(c)  For purposes of this subsection, the term "convicted"
761	means having been found guilty, with or without adjudication of
762	guilt, as a result of a jury verdict, nonjury trial, or entry of
763	a plea of guilty or nolo contendere.
764	(7)  Fingerprints for all slot machine occupational license
765	applications shall be taken in a manner approved by the division
766	and shall be submitted electronically to the Department of Law
767	Enforcement for state processing and the Federal Bureau of
768	Investigation for national processing for a criminal history
769	record check. All persons as specified in s. 550.1815(1)(a)
770	employed by or working within a licensed premises shall submit
771	fingerprints for a criminal history record check and may not
772	have been convicted of any disqualifying criminal offenses
773	specified in subsection (6). Division employees and law
774	enforcement officers assigned by their employing agencies to
775	work within the premises as part of their official duties are
776	excluded from the criminal history record check requirements
777	under this subsection. For purposes of this subsection, the term
778	"convicted" means having been found guilty, with or without
779	adjudication of guilt, as a result of a jury verdict, nonjury
780	trial, or entry of a plea of guilty or nolo contendere.
781	(a)  Fingerprints shall be taken in a manner approved by
782	the division upon initial application, or as required thereafter
783	by rule of the division, and shall be submitted electronically
784	to the Department of Law Enforcement for state processing. The
785	Department of Law Enforcement shall forward the fingerprints to
786	the Federal Bureau of Investigation for national processing. The
787	results of the criminal history record check shall be returned
788	to the division for purposes of screening. Licensees shall
789	provide necessary equipment approved by the Department of Law
790	Enforcement to facilitate such electronic submission. The
791	division requirements under this subsection shall be instituted
792	in consultation with the Department of Law Enforcement.
793	(b)  The cost of processing fingerprints and conducting a
794	criminal history record check for a general occupational license
795	shall be borne by the slot machine licensee. The cost of
796	processing fingerprints and conducting a criminal history record
797	check for a business or professional occupational license shall
798	be borne by the person being checked. The Department of Law
799	Enforcement may invoice the division for the fingerprints
800	submitted each month.
801	(c)  All fingerprints submitted to the Department of Law
802	Enforcement and required by this section shall be retained by
803	the Department of Law Enforcement and entered into the statewide
804	automated fingerprint identification system as authorized by s.
805	943.05(2)(b) and shall be available for all purposes and uses
806	authorized for arrest fingerprint cards entered into the
807	statewide automated fingerprint identification system pursuant
808	to s. 943.051.
809	(d)  The Department of Law Enforcement shall search all
810	arrest fingerprints received pursuant to s. 943.051 against the
811	fingerprints retained in the statewide automated fingerprint
812	identification system under paragraph (c). Any arrest record
813	that is identified with the retained fingerprints of a person
814	subject to the criminal history screening requirements of this
815	section shall be reported to the division. Each licensed
816	facility shall pay a fee to the division for the cost of
817	retention of the fingerprints and the ongoing searches under
818	this paragraph. The division shall forward the payment to the
819	Department of Law Enforcement. The amount of the fee to be
820	imposed for performing these searches and the procedures for the
821	retention of licensee fingerprints shall be as established by
822	rule of the Department of Law Enforcement. The division shall
823	inform the Department of Law Enforcement of any change in the
824	license status of licensees whose fingerprints are retained
825	under paragraph (c).
826	(e)  The division shall request the Department of Law
827	Enforcement to forward the fingerprints to the Federal Bureau of
828	Investigation for a national criminal history records check
829	every 3 years following issuance of a license. If the
830	fingerprints of a person who is licensed have not been retained
831	by the Department of Law Enforcement, the person must file a
832	complete set of fingerprints as provided for in paragraph (a).
833	The division shall collect the fees for the cost of the national
834	criminal history record check under this paragraph and shall
835	forward the payment to the Department of Law Enforcement. The
836	cost of processing fingerprints and conducting a criminal
837	history record check under this paragraph for a general
838	occupational license shall be borne by the slot machine
839	licensee. The cost of processing fingerprints and conducting a
840	criminal history record check under this paragraph for a
841	business or professional occupational license shall be borne by
842	the person being checked. The Department of Law Enforcement may
843	invoice the division for the fingerprints submitted each month.
844	Under penalty of perjury, each person who is licensed or who is
845	fingerprinted as required by this section must agree to inform
846	the division within 48 hours if he or she is convicted of or has
847	entered a plea of guilty or nolo contendere to any disqualifying
848	offense, regardless of adjudication.
849	(8)  All moneys collected pursuant to this section shall be
850	deposited into the Pari-mutuel Wagering Trust Fund.
851	551.108  Prohibited relationships.--
852	(1)  A person employed by or performing any function on
853	behalf of the division may not:
854	(a)  Be an officer, director, owner, or employee of any
855	person or entity licensed by the division.
856	(b)  Have or hold any interest, direct or indirect, in or
857	engage in any commerce or business relationship with any person
858	licensed by the division.
859	(2)  A manufacturer or distributor of slot machines may not
860	enter into any contract with a slot machine licensee that
861	provides for any revenue sharing of any kind or nature that is
862	directly or indirectly calculated on the basis of a percentage
863	of slot machine revenues. Any maneuver, shift, or device whereby
864	this subsection is violated is a violation of this chapter and
865	renders any such agreement void.
866	(3)  A manufacturer or distributor of slot machines or any
867	equipment necessary for the operation of slot machines or an
868	officer, director, or employee of any such manufacturer or
869	distributor may not have any ownership or financial interest in
870	a slot machine license or in any business owned by the slot
871	machine licensee.
872	(4)  An employee of the division or relative living in the
873	same household as such employee of the division may not wager at
874	any time on a slot machine located at a facility licensed by the
875	division.
876	(5)  An occupational licensee or relative living in the
877	same household as such occupational licensee may not wager at
878	any time on a slot machine located at a facility where that
879	person is employed.
880	551.109  Prohibited acts; penalties.--
881	(1)  Except as otherwise provided by law and in addition to
882	any other penalty, any person who knowingly makes or causes to
883	be made, or aids, assists, or procures another to make, a false
884	statement in any report, disclosure, application, or any other
885	document required under this chapter or any rule adopted under
886	this chapter is subject to an administrative fine or civil
887	penalty of up to $10,000.
888	(2)  Except as otherwise provided by law and in addition to
889	any other penalty, any person who possesses a slot machine
890	without the license required by this chapter or who possesses a
891	slot machine at any location other than at the slot machine
892	licensee's facility is subject to an administrative fine or
893	civil penalty of up to $10,000 per machine.
894	(3)  Any person who knowingly excludes, or takes any action
895	in an attempt to exclude, anything of value from the deposit,
896	counting, collection, or computation of revenues from slot
897	machine activity, or any person who by trick, sleight-of-hand
898	performance, a fraud or fraudulent scheme, or device wins or
899	attempts to win, for himself or herself or for another, money or
900	property or a combination thereof or reduces or attempts to
901	reduce a losing wager in connection with slot machine gaming
902	commits a felony of the third degree, punishable as provided in
903	s. 775.082, s. 775.083, or s. 775.084.
904	(4)  Any person who manipulates or attempts to manipulate
905	the outcome, payoff, or operation of a slot machine by physical
906	tampering or by use of any object, instrument, or device,
907	whether mechanical, electrical, magnetic, or involving other
908	means, commits a felony of the third degree, punishable as
909	provided in s. 775.082, s. 775.083, or s. 775.084.
910	(5)  Theft of any slot machine proceeds or of property
911	belonging to the slot machine operator or licensed facility by
912	an employee of the operator or facility or by an employee of a
913	person, firm, or entity that has contracted to provide services
914	to the operator or facility constitutes a felony of the third
915	degree, punishable as provided in s. 775.082 or s. 775.083.
916	(6)(a)  Any law enforcement officer or slot machine
917	operator who has probable cause to believe that a violation of
918	subsection (3), subsection (4), or subsection (5) has been
919	committed by a person and that the officer or operator can
920	recover the lost proceeds from such activity by taking the
921	person into custody may, for the purpose of attempting to effect
922	such recovery or for prosecution, take the person into custody
923	on the premises and detain the person in a reasonable manner and
924	for a reasonable period of time. If the operator takes the
925	person into custody, a law enforcement officer shall be called
926	to the scene immediately. The taking into custody and detention
927	by a law enforcement officer or slot machine operator, if done
928	in compliance with this subsection, does not render such law
929	enforcement officer, or the officer's agency, or the slot
930	machine operator criminally or civilly liable for false arrest,
931	false imprisonment, or unlawful detention.
932	(b)  Any law enforcement officer may arrest, either on or
933	off the premises and without warrant, any person if there is
934	probable cause to believe that person has violated subsection
935	(3), subsection (4), or subsection (5).
936	(c)  Any person who resists the reasonable effort of a law
937	enforcement officer or slot machine operator to recover the lost
938	slot machine proceeds that the law enforcement officer or slot
939	machine operator had probable cause to believe had been stolen
940	from the licensed facility and who is subsequently found to be
941	guilty of violating subsection (3), subsection (4), or
942	subsection (5) commits a misdemeanor of the first degree,
943	punishable as provided in s. 775.082 or s. 775.083, unless such
944	person did not know or did not have reason to know that the
945	person seeking to recover the lost proceeds was a law
946	enforcement officer or slot machine operator.
947	(7)  All penalties imposed and collected under this section
948	must be deposited into the Pari-mutuel Wagering Trust Fund of
949	the Department of Business and Professional Regulation.
950	551.111  Legal devices.--Notwithstanding any provision of
951	law to the contrary, a slot machine manufactured, sold,
952	distributed, possessed, or operated according to the provisions
953	of this chapter is not unlawful.
954	551.112  Exclusions of certain persons.--In addition to the
955	power to exclude certain persons from any facility of a slot
956	machine licensee in this state, the division may exclude any
957	person from any facility of a slot machine licensee in this
958	state for conduct that would constitute, if the person were a
959	licensee, a violation of this chapter or the rules of the
960	division. The division may exclude from any facility of a slot
961	machine licensee any person who has been ejected from a facility
962	of a slot machine licensee in this state or who has been
963	excluded from any facility of a slot machine licensee or gaming
964	facility in another state by the governmental department,
965	agency, commission, or authority exercising regulatory
966	jurisdiction over the gaming in such other state. This section
967	does not abrogate the common law right of a slot machine
968	licensee to exclude a patron absolutely in this state.
969	551.113  Persons prohibited from playing slot machines.--
970	(1)  A person who has not attained 21 years of age may not
971	play or operate a slot machine or have access to the designated
972	slot machine gaming area of a facility of a slot machine
973	licensee.
974	(2)  A slot machine licensee or agent or employee of a slot
975	machine licensee may not knowingly allow a person who has not
976	attained 21 years of age:
977	(a)  To play or operate any slot machine.
978	(b)  To be employed in any position allowing or requiring
979	access to the designated slot machine gaming area of a facility
980	of a slot machine licensee.
981	(c)  To have access to the designated slot machine gaming
982	area of a facility of a slot machine licensee.
983	(3)  The licensed facility shall post clear and conspicuous
984	signage within the designated slot machine gaming areas that
985	states the following:
986
987	THE PLAYING OF SLOT MACHINES BY PERSONS UNDER THE AGE OF
988	21 IS AGAINST FLORIDA LAW (SECTION 551.113, FLORIDA
989	STATUTES). PROOF OF AGE MAY BE REQUIRED AT ANY TIME.
990
991	551.114  Slot machine gaming areas.--
992	(1)  A slot machine licensee may make available for play up
993	to 1,500 slot machines within the property of the facilities of
994	the slot machine licensee.
995	(2)  The slot machine licensee shall display pari-mutuel
996	races or games within the designated slot machine gaming areas
997	and offer patrons within the designated slot machine gaming
998	areas the ability to engage in pari-mutuel wagering on live,
999	intertrack, and simulcast races conducted or offered to patrons
1000	of the licensed facility.
1001	(3)  The division shall require the posting of signs
1002	warning of the risks and dangers of gambling, showing the odds
1003	of winning, and informing patrons of the toll-free telephone
1004	number available to provide information and referral services
1005	regarding compulsive or problem gambling.
1006	(4)  Designated slot machine gaming areas may be located
1007	within the current live gaming facility or in an existing
1008	building that must be contiguous and connected to the live
1009	gaming facility. If a designated slot machine gaming area is to
1010	be located in a building that is to be constructed, that new
1011	building must be contiguous and connected to the live gaming
1012	facility.
1013	(5)  The permitholder shall provide adequate office space
1014	at no cost to the division and the Department of Law Enforcement
1015	for the oversight of slot machine operations. The division shall
1016	adopt rules establishing the criteria for adequate space,
1017	configuration, and location and needed electronic and
1018	technological requirements for office space required by this
1019	subsection.
1020	551.116  Days and hours of operation.--Slot machine gaming
1021	areas may be open daily throughout the year. The slot machine
1022	gaming areas may be open for a maximum of 16 hours per day.
1023	551.117  Penalties.--The division may revoke or suspend any
1024	slot machine license issued under this chapter upon the willful
1025	violation by the slot machine licensee of any provision of this
1026	chapter or of any rule adopted under this chapter. In lieu of
1027	suspending or revoking a slot machine license, the division may
1028	impose a civil penalty against the slot machine licensee for a
1029	violation of this chapter or any rule adopted by the division.
1030	Except as otherwise provided in this chapter, the penalty so
1031	imposed may not exceed $100,000 for each count or separate
1032	offense. All penalties imposed and collected must be deposited
1033	into the Pari-mutuel Wagering Trust Fund of the Department of
1034	Business and Professional Regulation.
1035	551.118  Compulsive or addictive gambling prevention
1036	program.--
1037	(1)  The slot machine licensee shall offer training to
1038	employees on responsible gaming and shall work with a compulsive
1039	or addictive gambling prevention program to recognize problem
1040	gaming situations and to implement responsible gaming programs
1041	and practices.
1042	(2)  The division shall, subject to competitive bidding,
1043	contract for provision of services related to the prevention of
1044	compulsive and addictive gambling. The contract shall provide
1045	for an advertising program to encourage responsible gaming
1046	practices and to publicize a gambling telephone help line. Such
1047	advertisements must be made both publicly and inside the
1048	designated slot machine gaming areas of the licensee's
1049	facilities. The terms of any contract for the provision of such
1050	services shall include accountability standards that must be met
1051	by any private provider. The failure of any private provider to
1052	meet any material terms of the contract, including the
1053	accountability standards, shall constitute a breach of contract
1054	or grounds for nonrenewal. The division may consult with the
1055	Department of the Lottery in the development of the program and
1056	the development and analysis of any procurement for contractual
1057	services for the compulsive or addictive gambling prevention
1058	program.
1059	(3)  The compulsive or addictive gambling prevention
1060	program shall be funded from an annual nonrefundable regulatory
1061	fee of $250,000 paid by the licensee to the division.
1062	551.119  Caterer's license.--A slot machine licensee is
1063	entitled to a caterer's license pursuant to s. 565.02 on days on
1064	which the pari-mutuel facility is open to the public for slot
1065	machine game play as authorized by this chapter.
1066	551.121  Prohibited activities and devices.--
1067	(1)  Complimentary or reduced-cost alcoholic beverages may
1068	not be served to persons playing a slot machine. Alcoholic
1069	beverages served to persons playing a slot machine shall cost at
1070	least the same amount as alcoholic beverages served to the
1071	general public at a bar within the facility.
1072	(2)  A slot machine licensee may not make any loan, provide
1073	credit, or advance cash in order to enable a person to play a
1074	slot machine. This subsection shall not prohibit automated
1075	ticket redemption machines that dispense cash resulting from the
1076	redemption of tickets from being located in the designated slot
1077	machine gaming area of the slot machine licensee.
1078	(3)  A slot machine licensee may not allow any automated
1079	teller machine or similar device designed to provide credit or
1080	dispense cash to be located within the facilities of the slot
1081	machine licensee.
1082	(4)  A slot machine licensee may not accept or cash any
1083	personal, third-party, corporate, business, or government-issued
1084	check from any person.
1085	(5)  A slot machine, or the computer operating system
1086	linking the slot machine, may not be linked by any means to any
1087	other slot machine or computer operating system of another slot
1088	machine licensee. A progressive system may not be used in
1089	conjunction with slot machines within or between licensed
1090	facilities.
1091	(6)  A slot machine located within a licensed facility
1092	shall accept only tickets or paper currency or an electronic
1093	payment system for wagering and return or deliver payouts to the
1094	player in the form of tickets that may be exchanged for cash,
1095	merchandise, or other items of value. The use of coins, credit
1096	or debit cards, tokens, or similar objects is specifically
1097	prohibited. However, an electronic credit system may be used for
1098	receiving wagers and making payouts.
1099	551.122  Rulemaking.--The division may adopt rules pursuant
1100	to ss. 120.536(1) and 120.54 to administer the provisions of
1101	this chapter.
1102	Section 2.  Section 849.15, Florida Statutes, is amended to
1103	read:
1104	849.15  Manufacture, sale, possession, etc., of coin-
1105	operated devices prohibited.--
1106	(1)  It is unlawful:
1107	(a)(1)  To manufacture, own, store, keep, possess, sell,
1108	rent, lease, let on shares, lend or give away, transport, or
1109	expose for sale or lease, or to offer to sell, rent, lease, let
1110	on shares, lend or give away, or permit the operation of, or for
1111	any person to permit to be placed, maintained, or used or kept
1112	in any room, space, or building owned, leased or occupied by the
1113	person or under the person's management or control, any slot
1114	machine or device or any part thereof; or
1115	(b)(2)  To make or to permit to be made with any person any
1116	agreement with reference to any slot machine or device, pursuant
1117	to which the user thereof, as a result of any element of chance
1118	or other outcome unpredictable to him or her, may become
1119	entitled to receive any money, credit, allowance, or thing of
1120	value or additional chance or right to use such machine or
1121	device, or to receive any check, slug, token or memorandum
1122	entitling the holder to receive any money, credit, allowance or
1123	thing of value.
1124	(2)  Pursuant to section 2 of that chapter of the Congress
1125	of the United States entitled "An act to prohibit transportation
1126	of gaming devices in interstate and foreign commerce," approved
1127	January 2, 1951, being c. 1194, 64 Stat. 1134, and also
1128	designated as 15 U.S.C. ss. 1171-1177, the State of Florida,
1129	acting by and through the duly elected and qualified members of
1130	its Legislature, does hereby in this section, and in accordance
1131	with and in compliance with the provisions of section 2 of such
1132	chapter of Congress, declare and proclaim that any county of the
1133	State of Florida within which slot machine gaming is authorized
1134	pursuant to chapter 551 is exempt from the provisions of section
1135	2 of that chapter of the Congress of the United States entitled
1136	"An act to prohibit transportation of gaming devices in
1137	interstate and foreign commerce," designated as 15 U.S.C. ss.
1138	1171-1177, approved January 2, 1951. All shipments of gaming
1139	devices, including slot machines, into any county of this state
1140	within which slot machine gaming is authorized pursuant to
1141	chapter 551 and the registering, recording, and labeling of
1142	which have been duly performed by the manufacturer or
1143	distributor thereof in accordance with sections 3 and 4 of that
1144	chapter of the Congress of the United States entitled "An act to
1145	prohibit transportation of gaming devices in interstate and
1146	foreign commerce," approved January 2, 1951, being c. 1194, 64
1147	Stat. 1134, and also designated as 15 U.S.C. ss. 1171-1177,
1148	shall be deemed legal shipments thereof into any such county
1149	provided the destination of such shipments is an eligible
1150	facility as defined s. 551.102.
1151	Section 3.  Subsections (1) and (2) of section 895.02,
1152	Florida Statutes, are amended to read:
1153	895.02  Definitions.--As used in ss. 895.01-895.08, the
1154	term:
1155	(1)  "Racketeering activity" means to commit, to attempt to
1156	commit, to conspire to commit, or to solicit, coerce, or
1157	intimidate another person to commit:
1158	(a)  Any crime which is chargeable by indictment or
1159	information under the following provisions of the Florida
1160	Statutes:
1161	1.  Section 210.18, relating to evasion of payment of
1162	cigarette taxes.
1163	2.  Section 403.727(3)(b), relating to environmental
1164	control.
1165	3.  Section 409.920 or s. 409.9201, relating to Medicaid
1166	fraud.
1167	4.  Section 414.39, relating to public assistance fraud.
1168	5.  Section 440.105 or s. 440.106, relating to workers'
1169	compensation.
1170	6.  Section 443.071(4), relating to creation of a
1171	fictitious employer scheme to commit unemployment compensation
1172	fraud.
1173	7.  Section 465.0161, relating to distribution of medicinal
1174	drugs without a permit as an Internet pharmacy.
1175	8.  Sections 499.0051, 499.0052, 499.00535, 499.00545, and
1176	499.0691, relating to crimes involving contraband and
1177	adulterated drugs.
1178	9.  Part IV of chapter 501, relating to telemarketing.
1179	10.  Chapter 517, relating to sale of securities and
1180	investor protection.
1181	11.  Section 550.235, s. 550.3551, or s. 550.3605, relating
1182	to dogracing and horseracing.
1183	12.  Chapter 550, relating to jai alai frontons.
1184	13.  Section 551.109, relating to slot machine gaming.
1185	14.13.  Chapter 552, relating to the manufacture,
1186	distribution, and use of explosives.
1187	15.14.  Chapter 560, relating to money transmitters, if the
1188	violation is punishable as a felony.
1189	16.15.  Chapter 562, relating to beverage law enforcement.
1190	17.16.  Section 624.401, relating to transacting insurance
1191	without a certificate of authority, s. 624.437(4)(c)1., relating
1192	to operating an unauthorized multiple-employer welfare
1193	arrangement, or s. 626.902(1)(b), relating to representing or
1194	aiding an unauthorized insurer.
1195	18.17.  Section 655.50, relating to reports of currency
1196	transactions, when such violation is punishable as a felony.
1197	19.18.  Chapter 687, relating to interest and usurious
1198	practices.
1199	20.19.  Section 721.08, s. 721.09, or s. 721.13, relating
1200	to real estate timeshare plans.
1201	21.20.  Chapter 782, relating to homicide.
1202	22.21.  Chapter 784, relating to assault and battery.
1203	23.22.  Chapter 787, relating to kidnapping.
1204	24.23.  Chapter 790, relating to weapons and firearms.
1205	25.24.  Section 796.03, s. 796.035, s. 796.04, s. 796.045,
1206	s. 796.05, or s. 796.07, relating to prostitution and sex
1207	trafficking.
1208	26.25.  Chapter 806, relating to arson.
1209	27.26.  Section 810.02(2)(c), relating to specified
1210	burglary of a dwelling or structure.
1211	28.27.  Chapter 812, relating to theft, robbery, and
1212	related crimes.
1213	29.28.  Chapter 815, relating to computer-related crimes.
1214	30.29.  Chapter 817, relating to fraudulent practices,
1215	false pretenses, fraud generally, and credit card crimes.
1216	31.30.  Chapter 825, relating to abuse, neglect, or
1217	exploitation of an elderly person or disabled adult.
1218	32.31.  Section 827.071, relating to commercial sexual
1219	exploitation of children.
1220	33.32.  Chapter 831, relating to forgery and
1221	counterfeiting.
1222	34.33.  Chapter 832, relating to issuance of worthless
1223	checks and drafts.
1224	35.34.  Section 836.05, relating to extortion.
1225	36.35.  Chapter 837, relating to perjury.
1226	37.36.  Chapter 838, relating to bribery and misuse of
1227	public office.
1228	38.37.  Chapter 843, relating to obstruction of justice.
1229	39.38.  Section 847.011, s. 847.012, s. 847.013, s. 847.06,
1230	or s. 847.07, relating to obscene literature and profanity.
1231	40.39.  Section 849.09, s. 849.14, s. 849.15, s. 849.23, or
1232	s. 849.25, relating to gambling.
1233	41.40.  Chapter 874, relating to criminal street gangs.
1234	42.41.  Chapter 893, relating to drug abuse prevention and
1235	control.
1236	43.42.  Chapter 896, relating to offenses related to
1237	financial transactions.
1238	44.43.  Sections 914.22 and 914.23, relating to tampering
1239	with a witness, victim, or informant, and retaliation against a
1240	witness, victim, or informant.
1241	45.44.  Sections 918.12 and 918.13, relating to tampering
1242	with jurors and evidence.
1243	(b)  Any conduct defined as "racketeering activity" under
1244	18 U.S.C. s. 1961(1).
1245	(2)  "Unlawful debt" means any money or other thing of
1246	value constituting principal or interest of a debt that is
1247	legally unenforceable in this state in whole or in part because
1248	the debt was incurred or contracted:
1249	(a)  In violation of any one of the following provisions of
1250	law:
1251	1.  Section 550.235, s. 550.3551, or s. 550.3605, relating
1252	to dogracing and horseracing.
1253	2.  Chapter 550, relating to jai alai frontons.
1254	3.  Section 551.109, relating to slot machine gaming.
1255	4.3.  Chapter 687, relating to interest and usury.
1256	5.4.  Section 849.09, s. 849.14, s. 849.15, s. 849.23, or
1257	s. 849.25, relating to gambling.
1258	(b)  In gambling activity in violation of federal law or in
1259	the business of lending money at a rate usurious under state or
1260	federal law.
1261	Section 4.  The Legislature finds and declares that it has
1262	exclusive authority over the conduct of all wagering occurring
1263	at a slot machine facility in this state. As provided by law,
1264	only the Division of Pari-mutuel Wagering and other authorized
1265	state agencies shall administer chapter 551, Florida Statutes,
1266	and regulate the slot machine gaming industry, including
1267	operation of slot machine facilities, games, slot machines, and
1268	facilities-based computer systems authorized in chapter 551,
1269	Florida Statutes, and the rules adopted by the division.
1270	Section 5.  (1)  For fiscal year 2005-2006, 46 full-time
1271	equivalent positions, with associated salary rate of 1,810,342,
1272	are authorized and the sums of $682,582 in recurring funds and
1273	$1,164,135 in nonrecurring funds from the Pari-mutuel Wagering
1274	Trust Fund of the Department of Business and Professional
1275	Regulation and $139,474 in recurring funds and $809,863 in
1276	nonrecurring funds from the Administrative Trust Fund of the
1277	Department of Business and Professional Regulation are hereby
1278	appropriated for the purpose of carrying out all regulatory
1279	activities provided in this act. The Executive Office of the
1280	Governor shall place these funds and positions and the salary
1281	rate in reserve until such time as the Department of Business
1282	and Professional Regulation submits an expenditure plan for
1283	approval to the Executive Office of the Governor and the chair
1284	and vice chair of the Legislative Budget Commission in
1285	accordance with the provisions of s. 216.177, Florida Statutes.
1286	(2)  For fiscal year 2005-2006, the sums of $1,024,998 in
1287	recurring funds and $1,184,564 in nonrecurring funds are hereby
1288	appropriated from the Pari-mutuel Wagering Trust Fund of the
1289	Department of Business and Professional Regulation for transfer
1290	to the Department of Law Enforcement for the purpose of
1291	investigations, intelligence gathering, background
1292	investigations, and any other responsibilities as provided for
1293	in this act. Thirty-nine full-time equivalent positions, with an
1294	associated salary rate of 1,682,034, are authorized and the sums
1295	of $1,024,998 in recurring funds and $1,184,564 in nonrecurring
1296	funds are hereby appropriated from the Operating Trust Fund
1297	within the Department of Law Enforcement for the purpose of
1298	investigations, intelligence gathering, background
1299	investigations, and any other responsibilities as provided for
1300	in this act. The Executive Office of the Governor shall place
1301	these funds and positions and the salary rate in reserve until
1302	such time as the Department of Law Enforcement submits an
1303	expenditure plan for approval to the Executive Office of the
1304	Governor and the chair and vice chair of the Legislative Budget
1305	Commission in accordance with the provisions of s. 216.177,
1306	Florida Statutes.
1307	(3)  The sum of $1,000,000 in recurring funds is
1308	appropriated for fiscal year 2005-2006 from the Pari-mutuel
1309	Wagering Trust Fund of the Department of Business and
1310	Professional Regulation from revenues received pursuant to s.
1311	551.118, Florida Statutes, for contract services related to the
1312	prevention of compulsive and addictive gambling.
1313	Section 6.  Paragraph (v) is added to subsection (1) of
1314	section 215.22, Florida Statutes, to read:
1315	215.22  Certain income and certain trust funds exempt.--
1316	(1)  The following income of a revenue nature or the
1317	following trust funds shall be exempt from the appropriation
1318	required by s. 215.20(1):
1319	(v)  Taxes imposed on slot machine revenues pursuant to s.
1320	551.106(2).
1321	Section 7.  The Department of Business and Professional
1322	Regulation may expend the unreserved cash balance in the Pari-
1323	mutuel Wagering Trust Fund received from non-slot revenue
1324	sources to implement slot machine regulation and investigations
1325	during fiscal year 2005-2006. Beginning as soon as practical,
1326	but no later than fiscal year 2006-2007, the department shall
1327	initiate repayment of such funds with slot machine license
1328	revenue sources until the full amount is reimbursed. The
1329	department shall submit a repayment plan for approval to the
1330	Executive Office of the Governor and the chair and vice chair of
1331	the Legislative Budget Commission in accordance with the
1332	provisions of s. 216.177, Florida Statutes. The repaid funds
1333	shall be subject to the requirements of s. 550.135(2), Florida
1334	Statutes.
1335	Section 8.  This act shall take effect upon becoming a law.

CODING: Words stricken are deletions; words underlined are additions.