| 1 | A bill to be entitled |
| 2 | An act relating to the Department of the Lottery and pari- |
| 3 | mutuel facilities; amending s. 24.103, F.S.; providing |
| 4 | definitions; amending s. 24.105, F.S.; authorizing the |
| 5 | department to hold patents; requiring that the department |
| 6 | notify the Department of State when the Department of the |
| 7 | Lottery secures property rights by patent, copyright, or |
| 8 | trademark; providing powers and duties of the Department |
| 9 | of the Lottery pertaining to video lottery games; creating |
| 10 | s. 24.125, F.S.; providing for the adoption of rules; |
| 11 | creating s. 24.126, F.S.; prohibiting certain persons from |
| 12 | playing video lottery games; requiring video lottery |
| 13 | retailers to post certain signage; providing penalties; |
| 14 | creating s. 24.127, F.S.; providing requirements for the |
| 15 | operation of video lottery games; providing for fines and |
| 16 | orders of suspension; requiring the video lottery retailer |
| 17 | to post bond; providing a payout percentage; providing for |
| 18 | licensure and a license fee; providing for the |
| 19 | distribution of net terminal income; providing for weekly |
| 20 | allocations; providing penalties; creating s. 24.128, |
| 21 | F.S.; providing for the licensure of video lottery |
| 22 | terminal vendors; providing for emergency rules; creating |
| 23 | s. 24.129, F.S.; providing that use or expansion of |
| 24 | property for video lottery terminals is not subject to |
| 25 | review or approval under land use, zoning, or site plan |
| 26 | review or concurrency law, ordinance, or regulation; |
| 27 | creating s. 24.130, F.S.; providing requirements for video |
| 28 | lottery terminals; creating s. 24.131, F.S.; requiring |
| 29 | video lottery terminal vendors to establish training |
| 30 | programs for employees who service such terminals; |
| 31 | requiring department approval of such programs; providing |
| 32 | certification requirements; providing for the adoption of |
| 33 | rules; creating s. 24.132, F.S.; requiring certain video |
| 34 | lottery retailers to execute certain agreements governing |
| 35 | the payment of purses and special thoroughbred racing |
| 36 | awards; requiring the remittance of funds pursuant to such |
| 37 | agreements; authorizing the department to sanction certain |
| 38 | breeders; prohibiting the operation of video lottery games |
| 39 | in the absence of agreements; requiring arbitration if |
| 40 | agreements are not in place; requiring certain video |
| 41 | lottery retailers to make certain payments for the |
| 42 | promotion of the thoroughbred racing industry; creating s. |
| 43 | 24.133, F.S.; requiring operators of facilities where |
| 44 | video lottery games are conducted to post certain signs |
| 45 | regarding compulsive gambling; creating s. 24.134, F.S.; |
| 46 | providing for compulsive gambling programs; creating s. |
| 47 | 24.136, F.S.; authorizing a caterer's license for video |
| 48 | lottery retailers; creating s. 24.137, F.S.; prohibiting |
| 49 | video lottery retailers from engaging in certain |
| 50 | activities; creating s. 24.138, F.S.; providing for the |
| 51 | exclusion of certain persons from a video lottery |
| 52 | retailer's premises; creating s. 24.139, F.S.; requiring |
| 53 | video lottery retailers to provide office space for |
| 54 | department employees; amending s. 212.02, F.S.; excluding |
| 55 | video lottery terminals from the definition of the term |
| 56 | "coin-operated amusement machine" for purposes of the |
| 57 | sales and use tax; amending s. 1011.62, F.S.; decreasing |
| 58 | the required local effort for school districts by certain |
| 59 | estimated revenues from video lottery terminals; amending |
| 60 | s. 550.09515, F.S.; providing for reissuance of a pari- |
| 61 | mutuel permit that has been revoked by the Division of |
| 62 | Pari-mutuel Wagering of the Department of Business and |
| 63 | Professional Regulation or has escheated to the state; |
| 64 | providing an appropriation and authorizing additional |
| 65 | positions; providing an effective date. |
| 66 |
|
| 67 | WHEREAS, the pari-mutuel industry has been a valuable part |
| 68 | of the Florida economy and a source of tax revenue for over 50 |
| 69 | years, and |
| 70 | WHEREAS, the onset of tribal gaming has had a |
| 71 | disproportionate negative impact on revenues and taxes on the |
| 72 | pari-mutuel facilities located within their primary market area, |
| 73 | and |
| 74 | WHEREAS, the tribal casinos do not pay any tax to the state |
| 75 | in connection with their gaming operations, and the loss of |
| 76 | revenues to existing pari-mutuel facilities causes the state to |
| 77 | lose tax revenues, and |
| 78 | WHEREAS, the state, in order to maintain the revenues in |
| 79 | those areas directly affected, would allow those pari-mutuel |
| 80 | facilities to become "video lottery retailers" subject to the |
| 81 | requirements of this act, including the tax imposed on |
| 82 | operations which would benefit the state and its education |
| 83 | system, and |
| 84 | WHEREAS, the limited authorization of "video lottery |
| 85 | retailers" at existing pari-mutuel facilities would ensure that |
| 86 | the state would continue to recover taxes associated with pari- |
| 87 | mutuel facilities that the state has enjoyed for over 50 years, |
| 88 | NOW, THEREFORE, |
| 89 |
|
| 90 | Be It Enacted by the Legislature of the State of Florida: |
| 91 |
|
| 92 | Section 1. Subsections (7) through (11) are added to |
| 93 | section 24.103, Florida Statutes, to read: |
| 94 | 24.103 Definitions.--As used in this act: |
| 95 | (7) "Video lottery game" means an electronically simulated |
| 96 | game involving chance, played on a video lottery terminal that, |
| 97 | upon insertion of currency, coins, tokens, credits, vouchers, or |
| 98 | anything of value, is available to play or simulate a bingo |
| 99 | game. The game includes progressive games where the jackpot |
| 100 | grows and accumulates as it is being played in a network of |
| 101 | video lottery terminals within a single pari-mutuel facility, |
| 102 | using a cathode ray tube, video display screen, microprocessors, |
| 103 | or other similar technology available now or in the future, as |
| 104 | approved by the department. A player may receive a payoff in the |
| 105 | form of currency, coins, tokens, credits, vouchers, or anything |
| 106 | of value, automatically or in some other manner. |
| 107 | (8) "Video lottery terminal" means a mechanical, |
| 108 | electronic, computerized gaming device that is a technological |
| 109 | aid to the playing of the game of bingo and that offers wagering |
| 110 | on the game of bingo as defined in s. 849.0931 and is capable of |
| 111 | being linked to a centralized computer management system for |
| 112 | regulating, managing, and auditing the operation, financial |
| 113 | data, and program information, as required by the department. A |
| 114 | video lottery terminal may be activated by insertion of a coin, |
| 115 | bill, ticket, token, or similar object or upon payment of any |
| 116 | consideration whatsoever, including the use of any electronic |
| 117 | payment system except a credit card or debit card, and may |
| 118 | entitle the person playing or operating the terminal to receive |
| 119 | or may deliver to the person cash, billets, tickets, tokens, or |
| 120 | electronic credits to be exchanged for cash. It is the intent of |
| 121 | the Legislature to authorize only those mechanical, electronic, |
| 122 | computerized, or other technological aids that a federal agency |
| 123 | or a court in a final, nonappealable order has concluded |
| 124 | expressly meet the definition of a mechanical, electronic, |
| 125 | computerized, or other technological aid to Class II gaming |
| 126 | pursuant to 25 U.S.C. s. 2703, the Indian Gaming Regulatory Act. |
| 127 | The Legislature does not intend to authorize any other gaming |
| 128 | device. For purposes of this subsection: |
| 129 | (a) "Electronic or electromechanical facsimile" means a |
| 130 | game played in an electronic or electromechanical format that |
| 131 | replicates a game of chance by incorporating all of the |
| 132 | characteristics of the game, except when, for bingo, the |
| 133 | electronic or electromechanical format broadens participation by |
| 134 | allowing multiple players to play with or against each other |
| 135 | rather than with or against a machine. |
| 136 | (b) "Mechanical, electronic, computerized, or other |
| 137 | technological aid" means any machine or device that assists a |
| 138 | player or the playing of a bingo game as defined in s. 849.0931 |
| 139 | and broadens participation by allowing multiple players at one |
| 140 | video lottery facility to play with or against each other in a |
| 141 | bingo game for a common prize or prizes. Such aid may use |
| 142 | alternative displays, including, but not limited to, a |
| 143 | simulation of spinning reels, to illustrate aspects of the game |
| 144 | of bingo such as when a player joins the game or when prizes |
| 145 | have been awarded, as long as such aid continuously and |
| 146 | prominently displays the electronic bingo card so that it is |
| 147 | apparent that the player is actually engaged in the play of |
| 148 | bingo. Such aid shall not: |
| 149 | 1. Determine or change the outcome of any game of bingo; |
| 150 | 2. Be an electronic or electromechanical facsimile that |
| 151 | replicates a game of bingo; or |
| 152 | 3. Allow players to play with or against the machine or |
| 153 | house for a prize. |
| 154 |
|
| 155 | A video lottery terminal is not a coin-operated amusement |
| 156 | machine as defined in s. 212.02(24) and does not include an |
| 157 | amusement game or machine as described in s. 849.161. |
| 158 | (9) "Video lottery terminal vendor" means any person |
| 159 | licensed by the department who is in the business of selling, |
| 160 | leasing, servicing, repairing, or upgrading video lottery |
| 161 | terminals for video lottery retailers or who provides to the |
| 162 | department or to a video lottery retailer computer equipment, |
| 163 | software, or other functions related to video lottery terminals. |
| 164 | (10) "Net terminal income" means currency and other |
| 165 | consideration placed into a video lottery terminal, less payouts |
| 166 | to or credits redeemed by players. |
| 167 | (11) "Video lottery retailer" means a pari-mutuel |
| 168 | permitholder under chapter 550 who holds a license to conduct a |
| 169 | full schedule of live racing or games, as described in s. |
| 170 | 550.002(11), whose facility is located within 40 miles of an |
| 171 | operating tribal casino that was in existence on or before |
| 172 | January 1, 2007, or whose facility is located within a county |
| 173 | with a population exceeding 800,000 according to the November 1, |
| 174 | 2006, estimate of the Bureau of Economic and Business Research |
| 175 | of the University of Florida. |
| 176 | Section 2. Subsection (10) of section 24.105, Florida |
| 177 | Statutes, is amended, and subsections (21) through (27) are |
| 178 | added to that section, to read: |
| 179 | 24.105 Powers and duties of department.--The department |
| 180 | shall: |
| 181 | (10) Notwithstanding the provisions of chapter 286, have |
| 182 | the authority to hold patents, copyrights, trademarks, and |
| 183 | service marks and enforce its rights with respect thereto. The |
| 184 | department shall notify the Department of State in writing |
| 185 | whenever property rights by patent, copyright, or trademark are |
| 186 | secured by the department. |
| 187 | (21) Have the capacity to support video lottery games at |
| 188 | facilities of video lottery retailers by January 1, 2008. |
| 189 | (22) Hear and decide promptly and in reasonable order all |
| 190 | video-lottery-related license applications and enforcement |
| 191 | proceedings for suspension or revocation of licenses. |
| 192 | (23) Collect and disburse video lottery revenue due the |
| 193 | department as described in this chapter. |
| 194 | (24) Certify net terminal income of video lottery |
| 195 | retailers by inspecting records or conducting audits or by any |
| 196 | other reasonable means. |
| 197 | (25) Maintain a list of licensed video lottery terminal |
| 198 | vendors and a current list of all contracts between video |
| 199 | lottery terminal vendors and video lottery retailers. |
| 200 | (26) Approve an application for a video lottery retailer |
| 201 | within 90 days after receipt of the application. A person meets |
| 202 | all qualifications of licensure under this section if the person |
| 203 | has been licensed under chapter 550 and meets the definition of |
| 204 | a video lottery retailer under s. 24.103(11). |
| 205 | (27) Adopt procedures by rule for scientifically testing |
| 206 | and technically evaluating video lottery terminals for |
| 207 | compliance with this chapter. The department may contract with |
| 208 | an independent testing laboratory to scientifically test and |
| 209 | technically evaluate video lottery games, video lottery |
| 210 | terminals, and video lottery operating systems for compliance |
| 211 | with this chapter. The independent testing laboratory must have |
| 212 | a national reputation as demonstrably competent and qualified to |
| 213 | scientifically test and evaluate all components of a video |
| 214 | lottery gaming system and to otherwise perform all functions |
| 215 | assigned to it under this chapter. The laboratory may not be |
| 216 | owned or controlled by a video lottery terminal vendor or video |
| 217 | lottery retailer. The selection of an independent testing |
| 218 | laboratory shall be made from a list of one or more laboratories |
| 219 | approved and licensed by the department. |
| 220 | Section 3. Section 24.125, Florida Statutes, is created to |
| 221 | read: |
| 222 | 24.125 Rules authorized.-- |
| 223 | (1) The department may adopt rules similar to rules |
| 224 | adopted under chapter 551 relating to: |
| 225 | (a) The regulation of video lottery retailers, video |
| 226 | lottery terminal vendors, video lottery games, and video lottery |
| 227 | products. |
| 228 | (b) Specifications for approving and authorizing video |
| 229 | lottery terminals in order to maintain the integrity of video |
| 230 | lottery games and terminals. The specifications may not limit |
| 231 | the number of video lottery terminal vendors who supply |
| 232 | terminals to fewer than four. |
| 233 | (c) Hearing and approving or disapproving video-lottery- |
| 234 | related license applications, and enforcement procedures related |
| 235 | to suspension and revocation of licenses. |
| 236 | (d) The collection and disbursement of video lottery |
| 237 | revenue. |
| 238 | (e) The certification of net terminal income of video |
| 239 | lottery retailers. |
| 240 | (2) Initial rules to permit the operation of video |
| 241 | lotteries and the licensing of video lottery vendors shall be |
| 242 | adopted by January 1, 2008. The department may adopt emergency |
| 243 | rules under ss. 120.536(1) and 120.54(4) to implement this |
| 244 | section. |
| 245 | Section 4. Section 24.126, Florida Statutes, is created to |
| 246 | read: |
| 247 | 24.126 Video lottery; minimum age.-- |
| 248 | (1) A person who has not attained 21 years of age may not |
| 249 | play a video lottery game. |
| 250 | (2) Each video lottery retailer shall post a clear and |
| 251 | conspicuous sign on all video lottery terminals which states: |
| 252 |
|
| 253 | THE USE OF A VIDEO LOTTERY TERMINAL BY PERSONS UNDER THE AGE OF |
| 254 | 21 IS AGAINST FLORIDA LAW. PROOF OF AGE IS REQUIRED FOR USE. |
| 255 |
|
| 256 | (3) Any person who violates this section commits a |
| 257 | misdemeanor of the second degree, punishable as provided in s. |
| 258 | 775.082 or s. 775.083. |
| 259 | Section 5. Section 24.127, Florida Statutes, is created to |
| 260 | read: |
| 261 | 24.127 Video lottery games.-- |
| 262 | (1) Video lottery games may be offered by a video lottery |
| 263 | retailer only at the pari-mutuel facility at which the video |
| 264 | lottery retailer is licensed to conduct pari-mutuel wagering, or |
| 265 | at its relocated licensed pari-mutuel facility if the relocation |
| 266 | of such facility has been approved by the Division of Pari- |
| 267 | mutuel Wagering pursuant to s. 550.0555. During any calendar |
| 268 | year in which a video lottery retailer maintains video lottery |
| 269 | terminals, the retailer must be licensed to conduct a full |
| 270 | schedule of live racing or games, as defined in s. 550.002(11), |
| 271 | including the conduct of racing or games under s. 550.475, or be |
| 272 | authorized to receive broadcasts of horseraces under s. |
| 273 | 550.6308. The department shall waive such requirements upon a |
| 274 | showing that the failure to conduct racing or games resulted |
| 275 | from a natural disaster, strike, or other act beyond the control |
| 276 | of the permitholder, including legal restrictions or |
| 277 | prohibitions placed on the permitholder's activities. If the |
| 278 | retailer does not comply with the requirement to conduct a full |
| 279 | schedule of racing or games for any other reason, the department |
| 280 | shall order the retailer to suspend its video lottery operation. |
| 281 | The department may assess an administrative fine, not to exceed |
| 282 | $5,000 per video lottery terminal per day, against any retailer |
| 283 | who does not suspend its video lottery operation when ordered to |
| 284 | do so by the department. The department may enforce a suspension |
| 285 | order or administrative fine as provided in s. 120.69. Each |
| 286 | video lottery retailer shall post a bond payable to the state in |
| 287 | an amount determined by the department as sufficient to |
| 288 | guarantee the payment of revenue due in any payment period. The |
| 289 | initial bond prior to commencement of operations by the video |
| 290 | lottery retailer shall be $2 million, issued by a surety |
| 291 | approved by the department, conditioned to make the payments to |
| 292 | the department. The bond shall be separate from the bond |
| 293 | required by s. 550.125. |
| 294 | (2) Each video lottery retailer shall determine the |
| 295 | following pertaining to the video lottery terminals located on |
| 296 | its premises: |
| 297 | (a) Number of video lottery terminals, not to exceed 1,000 |
| 298 | at any pari-mutuel facility; however, any pari-mutuel facility |
| 299 | that also holds a slot machine license is limited to a |
| 300 | combination of video lottery terminals and slot machines equal |
| 301 | to the maximum number of slot machines authorized for such |
| 302 | facility. |
| 303 | (b) Dates and hours during which the video lottery |
| 304 | terminals are available for play, not to exceed 16 hours a day, |
| 305 | except that the hours of operation may be extended by majority |
| 306 | vote of the governing body of the municipality where the |
| 307 | retailer is located or the governing body of the county if the |
| 308 | retailer is not located in a municipality. |
| 309 | (c) Mix of games available for play on video lottery |
| 310 | terminals. |
| 311 | (d) Use of currency, coins, tokens, vouchers, electronic |
| 312 | credits, or anything of value. |
| 313 | (e) Location and movement of video lottery terminals on |
| 314 | the premises. |
| 315 | (f) Staffing of video lottery terminal operations on the |
| 316 | premises. |
| 317 | (g) Minimum and maximum betting amounts and the payout, |
| 318 | based upon a suitable range, as determined by the video lottery |
| 319 | retailer, with a minimum of 85 percent of the amount of |
| 320 | currency, credits, vouchers, or anything of value put into a |
| 321 | video lottery terminal. |
| 322 | (3) Each video lottery retailer shall notify the |
| 323 | department before commencing the initial operation of video |
| 324 | lottery games. |
| 325 | (4) To facilitate the auditing and security programs that |
| 326 | are critical to the integrity of the video lottery system, the |
| 327 | department shall have overall control of the entire system. Each |
| 328 | video lottery terminal shall be linked, directly or indirectly, |
| 329 | to a computer system operated by the department or by a vendor |
| 330 | contracting with the department. |
| 331 | (5) Video lottery games may be played at an authorized |
| 332 | video lottery retailer's facility regardless of whether the |
| 333 | retailer is conducting a pari-mutuel event. |
| 334 | (6) Upon submission of the initial application for a video |
| 335 | lottery retailer license and annually thereafter on the |
| 336 | anniversary date of the issuance of the initial license, the |
| 337 | licensee must pay a nonrefundable license fee of $3 million to |
| 338 | the department. The license fee shall be deposited into the |
| 339 | Operating Trust Fund of the Department of the Lottery to be used |
| 340 | by the department to administer this act. |
| 341 | (7) Income derived from video lottery operations is not |
| 342 | subject to s. 24.121. The allocation of net terminal income |
| 343 | derived from video lottery games shall be as follows: |
| 344 | (a) An amount equal to 50 percent of net terminal income |
| 345 | shall be remitted to the Operating Trust Fund for transfer to |
| 346 | the Educational Enhancement Trust Fund. |
| 347 | (b) An amount equal to 0.50 percent of net terminal income |
| 348 | shall be paid by the video lottery retailer to the department to |
| 349 | administer and regulate the operation of video lottery |
| 350 | terminals. Funds in excess of the department's administrative |
| 351 | costs shall be transferred to the Educational Enhancement Trust |
| 352 | Fund. |
| 353 | (c) An amount equal to 0.925 percent of net terminal |
| 354 | income shall be remitted to the county where the facility is |
| 355 | located. |
| 356 | (d) An amount equal to 0.925 percent of net terminal |
| 357 | income shall be remitted to the municipality, if the facility is |
| 358 | located in a municipality. |
| 359 |
|
| 360 | Notwithstanding any local agreements to the contrary, pari- |
| 361 | mutuel facilities authorized to have slot machines pursuant to |
| 362 | s. 23, Art. X of the State Constitution shall be required to pay |
| 363 | no more than the percentages specified in paragraphs (c) and |
| 364 | (d). If necessary to comply with any covenant established |
| 365 | pursuant to s. 1013.68(4), s. 1013.70(1), or s. 1013.737(3), |
| 366 | funds transferred to the Educational Enhancement Trust Fund |
| 367 | under paragraph (b) shall first be available to pay debt service |
| 368 | on lottery bonds issued to fund school construction in the event |
| 369 | lottery revenues are insufficient for such purpose or to satisfy |
| 370 | debt service reserve requirements established in connection with |
| 371 | lottery bonds. Such funds are subject to annual appropriation by |
| 372 | the Legislature. |
| 373 | (8) The allocation provided in subsection (7) shall be |
| 374 | made weekly. Amounts allocated shall be remitted to the |
| 375 | department by electronic transfer within 24 hours after the |
| 376 | allocation is determined. |
| 377 | (9) Any person who intentionally manipulates or attempts |
| 378 | to manipulate the outcome, payoff, or operation of a video |
| 379 | lottery terminal by physical or electronic tampering or other |
| 380 | means commits a felony of the third degree, punishable as |
| 381 | provided in s. 775.082, s. 775.083, or s. 775.084. |
| 382 | (10) Notwithstanding s. 24.115, each video lottery |
| 383 | retailer is responsible for payment of video lottery prizes. |
| 384 | (11) In the area or room in a facility in which a video |
| 385 | lottery terminal is placed, the video lottery retailer shall |
| 386 | also place video monitors displaying live races or games being |
| 387 | conducted in that facility. If live races or games are not being |
| 388 | conducted, any simulcast races or games that are otherwise |
| 389 | displayed in the facility shall be displayed. In each area or |
| 390 | room, the retailer shall also provide a means for patrons to |
| 391 | wager on pari-mutuel activity. |
| 392 | Section 6. Section 24.128, Florida Statutes, is created to |
| 393 | read: |
| 394 | 24.128 Licensure of video lottery terminal vendors.--Video |
| 395 | lottery terminal vendors shall be licensed by the department by |
| 396 | October 1, 2007. The department may adopt emergency rules under |
| 397 | ss. 120.536(1) and 120.54(4) to implement this section. The |
| 398 | department may not license a person as a video lottery terminal |
| 399 | vendor who has an interest in a video lottery retailer or a |
| 400 | business relationship with a video lottery retailer other than |
| 401 | as a vendor or lessor of video lottery terminals. |
| 402 | Section 7. Section 24.129, Florida Statutes, is created to |
| 403 | read: |
| 404 | 24.129 Local zoning of pari-mutuel facilities.--The |
| 405 | installation, operation, or use of a video lottery terminal on |
| 406 | any property where pari-mutuel operations were or would have |
| 407 | been lawful under any county or municipal zoning ordinance on |
| 408 | July 1, 2006, does not change the character of the use of such |
| 409 | property. Such use is lawful and consistent with pari-mutuel |
| 410 | operations, and such use or the expansion or construction of |
| 411 | facilities to accommodate video lottery terminals on the |
| 412 | property is not subject to review or approval under land use, |
| 413 | zoning, or site plan review or concurrency law, ordinance, or |
| 414 | regulation by any governmental entity. |
| 415 | Section 8. Section 24.130, Florida Statutes, is created to |
| 416 | read: |
| 417 | 24.130 Video lottery terminals.-- |
| 418 | (1) Video lottery terminals may not be offered for use or |
| 419 | play in this state unless approved by the department. |
| 420 | (2) Each video lottery terminal approved for use in this |
| 421 | state must: |
| 422 | (a) Be protected against manipulation to affect the random |
| 423 | probabilities of winning plays. |
| 424 | (b) Have one or more mechanisms that accept currency, |
| 425 | coins, tokens, vouchers, or anything of value in exchange for |
| 426 | game credits. Such mechanisms must be designed to prevent |
| 427 | players from obtaining currency, coins, tokens, vouchers, or |
| 428 | anything of value, or from obtaining game credits, by physical |
| 429 | tampering. |
| 430 | (c) Be capable of suspending play until reset at the |
| 431 | direction of the department as a result of physical tampering. |
| 432 | (d) Be capable of being linked to a central computer |
| 433 | communications system to audit the operation, financial data, |
| 434 | and program information, as required by the department. |
| 435 | Section 9. Section 24.131, Florida Statutes, is created to |
| 436 | read: |
| 437 | 24.131 Video lottery terminal training program.-- |
| 438 | (1) Each licensed video lottery terminal vendor shall |
| 439 | submit a training program for the service and maintenance of |
| 440 | terminals and equipment for approval by the department. The |
| 441 | training program must include an outline of the training |
| 442 | curriculum; a list of instructors and their qualifications; a |
| 443 | copy of the instructional materials; and the dates, times, and |
| 444 | location of training classes. A service and maintenance program |
| 445 | may not be held unless approved by the department. |
| 446 | (2) Each video lottery terminal service employee must |
| 447 | complete the requirements of the manufacturer's training program |
| 448 | before performing service, maintenance, or repairs on video |
| 449 | lottery terminals or associated equipment. Upon the successful |
| 450 | completion of the training program by an employee, the |
| 451 | department shall issue a certificate authorizing the employee to |
| 452 | service, maintain, and repair video lottery terminals and |
| 453 | associated equipment. A certificate of completion may not be |
| 454 | issued to a person until the department determines that such |
| 455 | person has completed the required training. Before being |
| 456 | certified as a video lottery terminal service employee, a person |
| 457 | must pass a background investigation conducted by the |
| 458 | department. The department may revoke certification upon finding |
| 459 | that a person is in violation of this chapter or department |
| 460 | rule. |
| 461 | (3) The department may adopt rules regarding the training, |
| 462 | qualifications, and certification of video lottery terminal |
| 463 | service employees. |
| 464 | Section 10. Section 24.132, Florida Statutes, is created |
| 465 | to read: |
| 466 | 24.132 Video lottery retailer; agreements required.-- |
| 467 | (1) A video lottery retailer who holds a permit under |
| 468 | chapter 550 to conduct pari-mutuel wagering meets of |
| 469 | thoroughbred racing may not conduct video lottery games unless |
| 470 | the retailer has on file with the division a binding written |
| 471 | agreement governing the payment of purses on live thoroughbred |
| 472 | races conducted at the retailer's pari-mutuel facility between |
| 473 | the retailer and the association representing a majority of the |
| 474 | thoroughbred racehorse owners and trainers at that location. In |
| 475 | addition, a video lottery retailer may not conduct video lottery |
| 476 | games unless it has on file with the department a binding |
| 477 | written agreement between it and the Florida Thoroughbred |
| 478 | Breeders' Association, Inc., governing the payment of breeders', |
| 479 | stallion, and special racing awards on live thoroughbred races |
| 480 | conducted at the retailer's pari-mutuel facility. |
| 481 | (a) The agreement governing purses and the agreement |
| 482 | governing awards may direct the payment of such purses and |
| 483 | awards from revenues generated by any wagering or gaming that |
| 484 | the applicant is authorized to conduct. |
| 485 | (b) All purses and awards are subject to chapter 550. All |
| 486 | sums for breeders', stallion, and special racing awards shall be |
| 487 | remitted monthly to the Florida Thoroughbred Breeders' |
| 488 | Association, Inc., for the payment of awards subject to the |
| 489 | administrative fee authorized in s. 550.2625(3). |
| 490 | (2) The department shall prohibit the operation of video |
| 491 | lottery games at a retailer's premises if an agreement required |
| 492 | under subsection (1) is terminated or otherwise ceases to |
| 493 | operate or if the department determines that the retailer has |
| 494 | materially failed to comply with the terms of an agreement. |
| 495 | (3) If an agreement required under subsection (1) is not |
| 496 | in place, either party may request the American Arbitration |
| 497 | Association to furnish a list of 11 arbitrators, each of whom |
| 498 | shall have at least 5 years of commercial arbitration experience |
| 499 | and no financial interest in or prior relationship with any of |
| 500 | the parties or their affiliated or related entities or |
| 501 | principals. Each party to the agreement shall select a single |
| 502 | arbitrator from the list provided within 10 days after receipt |
| 503 | of the list, and the arbitrators selected shall choose one |
| 504 | additional arbitrator from the same list within the next 10 |
| 505 | days. |
| 506 | (a) If an agreement is not in place 60 days after the |
| 507 | request for a list of arbitrators, the matter shall be |
| 508 | immediately submitted for mandatory binding arbitration to |
| 509 | resolve the disagreement between the parties. The three |
| 510 | arbitrators selected shall constitute the panel that will |
| 511 | arbitrate the dispute between the parties pursuant to the |
| 512 | American Arbitration Association Commercial Arbitration Rules |
| 513 | and chapter 682. |
| 514 | (b) At the conclusion of the proceedings, which must be |
| 515 | within 90 days after requesting the list of arbitrators, the |
| 516 | arbitration panel shall present a proposed agreement to the |
| 517 | parties which the majority of the panel believes equitably |
| 518 | balances the rights, interests, obligations, and reasonable |
| 519 | expectations of the parties. The parties shall immediately enter |
| 520 | into such agreement, which shall satisfy the requirements of |
| 521 | subsection (1) and permit the conduct of video lottery games by |
| 522 | the video lottery retailer. The agreement is effective until the |
| 523 | last day of the license or renewal period or until the parties |
| 524 | enter into a different agreement. Each party shall pay its |
| 525 | respective costs of arbitration and one-half of the costs of the |
| 526 | arbitration panel unless the parties have agreed otherwise. If |
| 527 | the agreement remains in place 120 days before the scheduled |
| 528 | issuance of the next annual license renewal, the arbitration |
| 529 | process established in this subsection shall begin again. |
| 530 | (c) If neither of the agreements required under subsection |
| 531 | (1) is in place, arbitration shall proceed independently with |
| 532 | separate lists of arbitrators, arbitration panels, arbitration |
| 533 | proceedings, and resulting agreements. |
| 534 | (d) Arbitration and the resulting agreement governing the |
| 535 | payment of purses under subsection (1) shall be limited to the |
| 536 | payment of purses from net terminal income only. |
| 537 | (4) A video lottery retailer who holds a limited |
| 538 | intertrack waging license pursuant to s. 550.6308 shall make the |
| 539 | following payments for the promotion and welfare of the |
| 540 | thoroughbred racing industry: |
| 541 | (a) An amount equal to 12.5 percent of the net terminal |
| 542 | income shall be paid to thoroughbred pari-mutuel permitholders |
| 543 | that are licensed to conduct live races for purses. If more than |
| 544 | one permitholder is licensed to conduct live races during the |
| 545 | state thoroughbred racing season, the video lottery retailer |
| 546 | shall allocate these funds between the operating permitholders |
| 547 | on a pro rata basis based on the total live handle generated |
| 548 | during the previous racing season at the operating |
| 549 | permitholders' facilities. An amount equal to 7.5 percent of the |
| 550 | purse account generated under this paragraph shall be used for |
| 551 | Florida Owners' Awards pursuant to an agreement executed by the |
| 552 | permitholder, the Florida Thoroughbred Breeders' Association, |
| 553 | Inc., and the association representing a majority of the |
| 554 | thoroughbred racehorse owners and trainers at the permitholder's |
| 555 | facility. If an agreement is not reached 60 days before the |
| 556 | commencement of the permitholder's racing meet, the funds shall |
| 557 | be used for overnight purses. |
| 558 | (b) An amount equal to 1.25 percent of the net terminal |
| 559 | income shall be paid for breeders', stallion, or special racing |
| 560 | awards. The Florida Thoroughbred Breeders' Association, Inc., |
| 561 | may receive these payments from the video lottery retailer and |
| 562 | make payments of awards earned. The Florida Thoroughbred |
| 563 | Breeders' Association, Inc., may withhold up to 10 percent of |
| 564 | the permitholder's payments under this paragraph as a fee for |
| 565 | administering the payments of awards and for the general |
| 566 | promotion of the industry. The video lottery retailer shall make |
| 567 | weekly payments to the permitholders and to Florida Thoroughbred |
| 568 | Breeders' Association, Inc., at the same time it remits its |
| 569 | allocation to the department. |
| 570 | Section 11. Section 24.133, Florida Statutes, is created |
| 571 | to read: |
| 572 | 24.133 Notice of availability of assistance for compulsive |
| 573 | gambling required.-- |
| 574 | (1) The owner of each facility at which video lottery |
| 575 | games are conducted shall post a sign within 50 feet of each |
| 576 | entrance that displays the following statement: |
| 577 |
|
| 578 | "IF YOU OR SOMEONE YOU KNOW HAS A GAMBLING PROBLEM, HELP IS |
| 579 | AVAILABLE. CALL 1-800-426-7711." |
| 580 |
|
| 581 | (2) The department may approve additional toll-free |
| 582 | numbers to ensure compliance with this section. |
| 583 | Section 12. Section 24.134, Florida Statutes, is created |
| 584 | to read: |
| 585 | 24.134 Compulsive gambling program.-- |
| 586 | (1) Each video lottery retailer shall offer training to |
| 587 | employees on responsible gaming and shall work with a compulsive |
| 588 | gambling prevention program to recognize problem gaming |
| 589 | situations and to implement responsible gaming programs and |
| 590 | practices. |
| 591 | (2) The department shall, subject to competitive bidding, |
| 592 | contract for the provision of services related to the prevention |
| 593 | of compulsive gambling. The contract shall provide for an |
| 594 | advertising program to encourage responsible gaming practices |
| 595 | and to publicize a gambling telephone help line. Such |
| 596 | advertisements must be made both publicly and inside the gaming |
| 597 | areas of the video lottery retailers' facilities. The terms of |
| 598 | any contract for the provision of such services shall include |
| 599 | accountability standards that must be met by any private |
| 600 | provider. The failure of any private provider to meet any |
| 601 | material terms of the contract, including the accountability |
| 602 | standards, shall constitute a breach of contract or grounds for |
| 603 | nonrenewal. |
| 604 | Section 13. Section 24.136, Florida Statutes, is created |
| 605 | to read: |
| 606 | 24.136 Video lottery retailer caterer's license.--A video |
| 607 | lottery retailer is entitled to a caterer's license pursuant to |
| 608 | s. 565.02 on days on which the pari-mutuel facility is open to |
| 609 | the public for video lottery play as authorized by this chapter. |
| 610 | Section 14. Section 24.137, Florida Statutes, is created |
| 611 | to read: |
| 612 | 24.137 Other prohibited activities.-- |
| 613 | (1) Complimentary or reduced-cost alcoholic beverages may |
| 614 | not be served to a person playing a video lottery terminal. |
| 615 | Alcoholic beverages served to a person playing a video lottery |
| 616 | terminal shall cost at least the same amount as alcoholic |
| 617 | beverages served to the general public at a bar within the |
| 618 | facility. |
| 619 | (2) A video lottery retailer may not allow any automated |
| 620 | teller machine or similar device that provides credit or |
| 621 | dispenses cash to be located in the area where video lottery |
| 622 | terminal gaming may be conducted pursuant to this chapter, nor |
| 623 | may such retailer make loans, provide credit, or advance cash to |
| 624 | enable a person to play a video lottery terminal. However, |
| 625 | automated ticket redemption machines that dispense cash for the |
| 626 | redemption of tickets may be located in such areas. |
| 627 | (3) A video lottery retailer may not accept or cash any |
| 628 | personal, third-party, corporate, business, or government-issued |
| 629 | check from any person. |
| 630 | (4) A video lottery terminal located within a video |
| 631 | lottery retailer's facility shall accept only tickets or paper |
| 632 | currency or an electronic payment system for wagering and shall |
| 633 | return or deliver payouts to the player in the form of tickets |
| 634 | that may be exchanged for cash, merchandise, or other items of |
| 635 | value. The use of coins, credit or debit cards, tokens, or |
| 636 | similar objects is prohibited. However, an electronic credit |
| 637 | system may be used for receiving wagers and making payouts. |
| 638 | Section 15. Section 24.138, Florida Statutes, is created |
| 639 | to read: |
| 640 | 24.138 Exclusions of certain persons.--In addition to the |
| 641 | power to exclude certain persons from any facility of a video |
| 642 | lottery retailer in this state, the department may exclude any |
| 643 | person for conduct that would constitute, if the person were a |
| 644 | licensee, a violation of this chapter, chapter 550, chapter 551, |
| 645 | or a department rule. The department may exclude from any |
| 646 | facility of a video lottery retailer any person who has been |
| 647 | ejected from a facility of a video lottery retailer or slot |
| 648 | machine licensee in this or any other state by the governmental |
| 649 | department, agency, commission, or authority that regulates |
| 650 | gaming in that state. This section does not abrogate the common |
| 651 | law right of a video lottery retailer to exclude a patron |
| 652 | absolutely in this state. |
| 653 | Section 16. Section 24.139, Florida Statutes, is created |
| 654 | to read: |
| 655 | 24.139 Department office space.--A video lottery retailer |
| 656 | shall provide adequate office space at no cost to the department |
| 657 | for the oversight of video lottery terminal operations. The |
| 658 | department shall adopt rules establishing the criteria for |
| 659 | adequate space, configuration, and needed electronic and |
| 660 | technological requirements for office space required by this |
| 661 | section. |
| 662 | Section 17. Subsection (24) of section 212.02, Florida |
| 663 | Statues, is amended to read: |
| 664 | 212.02 Definitions.--The following terms and phrases when |
| 665 | used in this chapter have the meanings ascribed to them in this |
| 666 | section, except where the context clearly indicates a different |
| 667 | meaning: |
| 668 | (24) "Coin-operated amusement machine" means any machine |
| 669 | operated by coin, slug, token, coupon, or similar device for the |
| 670 | purposes of entertainment or amusement. The term includes, but |
| 671 | is not limited to, coin-operated pinball machines, music |
| 672 | machines, juke boxes, mechanical games, video games, arcade |
| 673 | games, billiard tables, moving picture viewers, shooting |
| 674 | galleries, and all other similar amusement devices. The term |
| 675 | does not include a video lottery terminal operated pursuant to |
| 676 | chapter 24. |
| 677 | Section 18. Subsection (4) of section 1011.62, Florida |
| 678 | Statutes, is amended to read: |
| 679 | 1011.62 Funds for operation of schools.--If the annual |
| 680 | allocation from the Florida Education Finance Program to each |
| 681 | district for operation of schools is not determined in the |
| 682 | annual appropriations act or the substantive bill implementing |
| 683 | the annual appropriations act, it shall be determined as |
| 684 | follows: |
| 685 | (4) COMPUTATION OF DISTRICT REQUIRED LOCAL EFFORT.--The |
| 686 | Legislature shall prescribe the aggregate required local effort |
| 687 | for all school districts collectively as an item in the General |
| 688 | Appropriations Act for each fiscal year. The estimated video |
| 689 | lottery terminal net income that is remitted to the Operating |
| 690 | Trust Fund for transfer to the Educational Enhancement Trust |
| 691 | Fund pursuant to s. 24.127(7) for the fiscal year shall be |
| 692 | subtracted from the aggregate required local effort. The amount |
| 693 | that each district shall provide annually toward the cost of the |
| 694 | Florida Education Finance Program for kindergarten through grade |
| 695 | 12 programs shall be calculated as follows: |
| 696 | (a) Estimated taxable value calculations.-- |
| 697 | 1.a. Not later than 2 working days prior to July 19, the |
| 698 | Department of Revenue shall certify to the Commissioner of |
| 699 | Education its most recent estimate of the taxable value for |
| 700 | school purposes in each school district and the total for all |
| 701 | school districts in the state for the current calendar year |
| 702 | based on the latest available data obtained from the local |
| 703 | property appraisers. Not later than July 19, the Commissioner of |
| 704 | Education shall compute a millage rate, rounded to the next |
| 705 | highest one one-thousandth of a mill, which, when applied to 95 |
| 706 | percent of the estimated state total taxable value for school |
| 707 | purposes, would generate the prescribed aggregate required local |
| 708 | effort for that year for all districts. The Commissioner of |
| 709 | Education shall certify to each district school board the |
| 710 | millage rate, computed as prescribed in this subparagraph, as |
| 711 | the minimum millage rate necessary to provide the district |
| 712 | required local effort for that year. |
| 713 | b. The General Appropriations Act shall direct the |
| 714 | computation of the statewide adjusted aggregate amount for |
| 715 | required local effort for all school districts collectively from |
| 716 | ad valorem taxes to ensure that no school district's revenue |
| 717 | from required local effort millage will produce more than 90 |
| 718 | percent of the district's total Florida Education Finance |
| 719 | Program calculation, and the adjustment of the required local |
| 720 | effort millage rate of each district that produces more than 90 |
| 721 | percent of its total Florida Education Finance Program |
| 722 | entitlement to a level that will produce only 90 percent of its |
| 723 | total Florida Education Finance Program entitlement in the July |
| 724 | calculation. |
| 725 | 2. As revised data are received from property appraisers, |
| 726 | the Department of Revenue shall amend the certification of the |
| 727 | estimate of the taxable value for school purposes. |
| 728 | (b) Final calculation.-- |
| 729 | 1. On September 1 of each year, the Department of Revenue |
| 730 | shall certify to the Commissioner of Education the total of the |
| 731 | prior year final taxable value for school purposes in each |
| 732 | school district and the total for all school districts in the |
| 733 | state. The commissioner shall use the final taxable value |
| 734 | certified on September 1 for school purposes for each school |
| 735 | district in the final calculation of the annual Florida |
| 736 | Education Finance Program allocations. |
| 737 | 2. For purposes of this paragraph, the final taxable value |
| 738 | for school purposes shall be the taxable value for school |
| 739 | purposes on which the tax bills are computed and mailed to the |
| 740 | taxpayers, adjusted to reflect final administrative actions of |
| 741 | value adjustment boards and judicial decisions pursuant to |
| 742 | chapter 194. For each county that has not submitted a revised |
| 743 | tax roll reflecting final value adjustment board actions and |
| 744 | final judicial decisions, the Department of Revenue shall |
| 745 | certify the most recent revision of the taxable value for school |
| 746 | purposes. The value certified on September 1 shall be the final |
| 747 | taxable value for school purposes for that year, and no further |
| 748 | adjustments shall be made, except those made pursuant to |
| 749 | paragraph (11)(b). |
| 750 | (c) Equalization of required local effort.-- |
| 751 | 1. The Department of Revenue shall include with its |
| 752 | certifications provided pursuant to paragraph (a) its most |
| 753 | recent determination of the assessment level of the prior year's |
| 754 | assessment roll for each county and for the state as a whole. |
| 755 | 2. The Commissioner of Education shall adjust the required |
| 756 | local effort millage of each district for the current year, |
| 757 | computed pursuant to paragraph (a), as follows: |
| 758 | a. The equalization factor for the prior year's assessment |
| 759 | roll of each district shall be multiplied by 95 percent of the |
| 760 | taxable value for school purposes shown on that roll and by the |
| 761 | prior year's required local-effort millage, exclusive of any |
| 762 | equalization adjustment made pursuant to this paragraph. The |
| 763 | dollar amount so computed shall be the additional required local |
| 764 | effort for equalization for the current year. |
| 765 | b. Such equalization factor shall be computed as the |
| 766 | quotient of the prior year's assessment level of the state as a |
| 767 | whole divided by the prior year's assessment level of the |
| 768 | county, from which quotient shall be subtracted 1. |
| 769 | c. The dollar amount of additional required local effort |
| 770 | for equalization for each district shall be converted to a |
| 771 | millage rate, based on 95 percent of the current year's taxable |
| 772 | value for that district, and added to the required local effort |
| 773 | millage determined pursuant to paragraph (a). |
| 774 | 3. Notwithstanding the limitations imposed pursuant to s. |
| 775 | 1011.71(1), the total required local-effort millage, including |
| 776 | additional required local effort for equalization, shall be an |
| 777 | amount not to exceed 10 minus the maximum millage allowed as |
| 778 | nonvoted discretionary millage, exclusive of millage authorized |
| 779 | pursuant to s. 1011.71(2). Nothing herein shall be construed to |
| 780 | allow a millage in excess of that authorized in s. 9, Art. VII |
| 781 | of the State Constitution. |
| 782 | 4. For the purposes of this chapter, the term "assessment |
| 783 | level" means the value-weighted mean assessment ratio for the |
| 784 | county or state as a whole, as determined pursuant to s. |
| 785 | 195.096, or as subsequently adjusted. However, for those parcels |
| 786 | studied pursuant to s. 195.096(3)(a)1. which are receiving the |
| 787 | assessment limitation set forth in s. 193.155, and for which the |
| 788 | assessed value is less than the just value, the department shall |
| 789 | use the assessed value in the numerator and the denominator of |
| 790 | such assessment ratio. In the event a court has adjudicated that |
| 791 | the department failed to establish an accurate estimate of an |
| 792 | assessment level of a county and recomputation resulting in an |
| 793 | accurate estimate based upon the evidence before the court was |
| 794 | not possible, that county shall be presumed to have an |
| 795 | assessment level equal to that of the state as a whole. |
| 796 | 5. If, in the prior year, taxes were levied against an |
| 797 | interim assessment roll pursuant to s. 193.1145, the assessment |
| 798 | level and prior year's nonexempt assessed valuation used for the |
| 799 | purposes of this paragraph shall be those of the interim |
| 800 | assessment roll. |
| 801 | (d) Exclusion.-- |
| 802 | 1. In those instances in which: |
| 803 | a. There is litigation either attacking the authority of |
| 804 | the property appraiser to include certain property on the tax |
| 805 | assessment roll as taxable property or contesting the assessed |
| 806 | value of certain property on the tax assessment roll, and |
| 807 | b. The assessed value of the property in contest involves |
| 808 | more than 6 percent of the total nonexempt assessment roll, the |
| 809 | plaintiff shall provide to the district school board of the |
| 810 | county in which the property is located and to the Department of |
| 811 | Education a certified copy of the petition and receipt for the |
| 812 | good faith payment at the time they are filed with the court. |
| 813 | 2. For purposes of computing the required local effort for |
| 814 | each district affected by such petition, the Department of |
| 815 | Education shall exclude from the district's total nonexempt |
| 816 | assessment roll the assessed value of the property in contest |
| 817 | and shall add the amount of the good faith payment to the |
| 818 | district's required local effort. |
| 819 | (e) Recomputation.--Following final adjudication of any |
| 820 | litigation on the basis of which an adjustment in taxable value |
| 821 | was made pursuant to paragraph (d), the department shall |
| 822 | recompute the required local effort for each district for each |
| 823 | year affected by such adjustments, utilizing taxable values |
| 824 | approved by the court, and shall adjust subsequent allocations |
| 825 | to such districts accordingly. |
| 826 | Section 19. Subsection (8) is added to section 550.09515, |
| 827 | Florida Statutes, to read: |
| 828 | 550.09515 Thoroughbred horse taxes; abandoned interest in |
| 829 | a permit for nonpayment of taxes.-- |
| 830 | (8) Notwithstanding any other provision in this chapter, a |
| 831 | thoroughbred permit that has been revoked by the division |
| 832 | heretofore or hereafter pursuant to s. 550.5251 or has escheated |
| 833 | to the state pursuant to this section shall be deemed to |
| 834 | continue in existence and held by the division in abeyance |
| 835 | subject to reissuance pursuant to this subsection. Any such |
| 836 | permit shall be subject to reissuance by the division and shall |
| 837 | be reissued to a qualified applicant for use at the same |
| 838 | facility at which the permit was last operated as a thoroughbred |
| 839 | permit. The prior holder of any revoked or escheated |
| 840 | thoroughbred permit rendered subject to reissuance by this |
| 841 | subsection shall not be disqualified for receipt of a reissued |
| 842 | thoroughbred permit if the primary reason for the revocation or |
| 843 | escheat of the thoroughbred permit was for any reason other than |
| 844 | the prior holder's disqualification on grounds of moral |
| 845 | turpitude. Nonpayment of taxes on handle shall not be considered |
| 846 | a ground of moral turpitude. If more than one applicant applies |
| 847 | for reissuance of a thoroughbred permit pursuant to the terms |
| 848 | and conditions of this subsection, the division shall give |
| 849 | preference to an applicant not currently in possession of |
| 850 | another pari-mutuel permit issued pursuant to this chapter. |
| 851 | Section 20. For the 2007-2008 fiscal year, the sum of $10 |
| 852 | million in recurring funds is appropriated from the Operating |
| 853 | Trust Fund in the Department of the Lottery and 24 full-time |
| 854 | equivalent positions and associated salary rate of 1,276,000 are |
| 855 | authorized to implement the provisions of this act. |
| 856 | Section 21. This act shall take effect upon becoming a |
| 857 | law. |