Florida Senate - 2008 SB 1126

By Senator Ring

32-02413B-08 20081126__

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A bill to be entitled

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An act relating to governmental reorganization;

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transferring and reassigning divisions, functions, and

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responsibilities, including records, personnel, property,

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and unexpended balances of appropriations and other

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resources from the Department of the Lottery, the

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Department of Business and Professional Regulation, the

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Department of Law Enforcement, and the Department of Legal

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Affairs to the Department of Gaming Control; transferring

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certain trust funds from the Department of Business and

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Professional Regulation to the Department of Gaming

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Control; amending s. 11.905, F.S.; requiring the review of

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the Department of Gaming Control; amending s. 20.165,

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F.S.; deleting the Division of Pari-mutuel Wagering within

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the Department of Business and Professional Regulation;

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repealing s. 20.317, F.S., relating to the Department of

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the Lottery; creating s. 20.318, F.S.; creating the

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Department of Gaming Control; establishing the Gaming

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Commission as head of the Department of Gaming Control;

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providing for membership; providing duties; providing

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divisions and bureaus within the Department of Gaming

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Control; requiring the department to provide advisory

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opinions; providing that such opinions are binding to

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certain persons; requiring the department to adopt rules

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regarding advisory opinions; requiring the department to

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serve as the state compliance agency; authorizing the

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department to employ law enforcement officers; requiring

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the department's law enforcement officers to meet certain

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qualifications; providing that such law enforcement

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officers have certain authorities and powers; amending ss.

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24.103, 24.104, 24.105, and 24.107, F.S.; conforming

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provisions to changes made by the act; amending s. 24.108,

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F.S.; renaming the Division of Security within the former

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Department of the Lottery as the Division of Licensing and

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Enforcement within the Department of Gaming Control;

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amending ss. 24.109, 24.111, 24.112, 24.113, 24.114,

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24.115, 24.1153, 24.116, 24.117, 24.118, 24.119, 24.120,

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24.121, 24.1215, 24.122, 24.123, 24.124, and 112.313,

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F.S.; conforming provisions to changes made by the act;

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amending s. 120.80, F.S.; deleting certain exceptions and

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special requirements regarding hearings applicable to the

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Department of Business and Professional Regulation;

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creating certain exceptions and special requirements

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regarding hearings within the Department of Gaming

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Control; amending s. 213.053, F.S.; authorizing the

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Department of Revenue to share certain information with

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the Division of the Lottery within the Department of

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Gaming Control; amending s. 215.20, F.S.; requiring that

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trust funds within the Department of Gaming Control

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contribute to the General Revenue Fund and deleting from

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that requirement trust funds administered by the Division

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of Pari-mutuel Wagering; amending s. 215.22, F.S.;

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exempting trust funds administered by the Division of the

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Lottery from certain appropriations; amending ss. 215.422,

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287.045, F.S.; conforming provisions to changes made by

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the act; amending s. 455.116, F.S.; removing a trust fund

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from the Department of Business and Professional

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Regulation; amending s. 550.002, F.S.; providing

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definitions; amending ss. 550.0115, 550.01215, 550.0235,

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550.0251, 550.0351, 550.054, 550.0651, 550.0745, 550.0951,

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550.09511, 550.09512, 550.09514, 550.09515, 550.105,

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550.1155, 550.125, 550.135, 550.155, 550.1648, 550.175,

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550.1815, 550.24055, 550.2415, 550.2614, 550.26165,

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550.2625, 550.26352, 550.2704, 550.334, 550.3355,

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550.3551, 550.3605, 550.3615, 550.375, 550.495, 550.505,

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550.5251, 550.625, 550.6305, 550.6308, 550.70, 550.902,

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and 550.907, F.S.; conforming provisions to changes made

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by the act; amending s. 551.102, F.S.; revising

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definitions; amending s. 551.103, 551.104, 551.1045,

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551.105, 551.106, 551.107, 551.108, 551.109, 551.112,

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551.114, 551.117, 551.118, 551.121, 551.122, and 551.123,

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F.S.; conforming provisions to changes made by the act;

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amending s. 616.09; transferring authority from the

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Department of Legal Affairs to the Bureau of Prosecution

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within the Division of Licensing and Enforcement of the

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Department of Gaming Control to prosecute unauthorized

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gambling; amending s. 616.241, F.S.; providing that the

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Department of Gaming Control is responsible for

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prohibiting unauthorized gambling at certain community and

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local events; amending s. 849.086, F.S.; revising

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definitions; conforming provisions to changes made by the

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act; amending s. 849.094, F.S.; providing that the

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prohibition on gambling does not apply to the Department

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of Gaming Control rather than of the Department of

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Business and Professional Regulation; amending s. 849.161,

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F.S.; providing that ch. 849, F.S., pertaining to

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gambling, does not apply to certain truck stops having

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amusement games or machines; providing definitions;

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requiring the department to adopt rules pertaining to

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skill-based gaming; providing requirements for those

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rules; requiring the department to conduct investigations

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necessary for fulfilling its responsibilities under ch.

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849, F.S.; providing that the department and other law

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enforcement agencies have concurrent jurisdiction to

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investigate criminal violations; authorizing the

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department and local law enforcement agencies unrestricted

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access to a licensee's facility for certain purposes;

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authorizing the department to collect certain assessments

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and to deny, revoke, or suspend a person's license under

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certain circumstances; requiring a skill-based operator to

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pay a license fee; requiring the Division of Licensing and

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Enforcement to evaluate the operator license fee and make

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recommendations to the Legislature; providing the tax rate

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on revenues from skill-based machines; requiring the tax

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to be paid to a Florida Gaming Trust Fund; requiring the

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slot machine licensee to remit a tax on slot machine

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revenues and file a report; providing for penalties;

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authorizing the Division of Licensing and Enforcement to

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require operators to remit certain assessments by

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electronic funds transfer; amending s. 943.0311, F.S.;

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defining the Department of Gaming Control as a state

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agency with regard to domestic security; providing an

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effective date.

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

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     Section 1. Transfers.-

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     (1) All of the statutory powers, duties and functions,

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records, personnel, property, and unexpended balances of

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appropriations, allocations, or other funds for the

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administration of chapter 24, Florida Statutes, are transferred

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by a type two transfer, as defined in s. 20.06(2), Florida

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Statutes, from the Department of the Lottery to the Division of

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the Lottery within the Department of Gaming Control.

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     (2) All of the statutory powers, duties and functions,

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records, personnel, property, and unexpended balances of

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appropriations, allocations, or other funds for the

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administration of chapter 550, Florida Statutes, are transferred

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by a type two transfer, as defined in s. 20.06(2), Florida

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Statutes, from the Division of Pari-mutuel Wagering of the

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Department of Business and Professional Regulation to the Bureau

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of Pari-mutuel Wagering within the Division of Gambling Oversight

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of the Department of Gaming Control.

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     (3) All of the statutory powers, duties and functions,

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records, personnel, property, and unexpended balances of

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appropriations, allocations, or other funds for the

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administration of s. 849.086, Florida Statutes, are transferred

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by a type two transfer, as defined in s. 20.06(2), Florida

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Statutes, from the Division of Pari-mutuel Wagering of the

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Department of Business and Professional Regulation to the Bureau

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of Cardrooms within the Division of Gambling Oversight of the

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Department of Gaming Control.

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     (4) All of the statutory powers, duties and functions,

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records, personnel, property, and unexpended balances of

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appropriations, allocations, or other funds for the

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administration of chapter 551, Florida Statutes, are transferred

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by a type two transfer, as defined in s. 20.06(2), Florida

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Statutes, from the Division of Pari-mutuel Wagering of the

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Department of Business and Professional Regulation to the Bureau

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of Slot Machines within the Division of Gambling Oversight of the

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Department of Gaming Control.

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     (5) All of the statutory powers, duties and functions,

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records, personnel, property, and unexpended balances of

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appropriations, allocations, or other funds of the Department of

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Law Enforcement regarding the regulation of slot machine gaming

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are transferred by a type two transfer, as defined in s.

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20.06(2), Florida Statutes, to the Division of Licensing and

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Enforcement of the Department of Gaming Control.

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     (6) All of the statutory powers, duties and functions,

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records, personnel, property, and unexpended balances of

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appropriations, allocations, or other funds of the Department of

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Legal Affairs regarding:

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     (a) The regulation of slot machine licensing are

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transferred by a type two transfer, as defined in s. 20.06(2),

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Florida Statutes, to the Bureau of Slot Machines within the

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Division of Gambling Oversight and the Division of Licensing and

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Enforcement of the Department of Gaming Control.

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     (b) The prosecution of illegal gambling are transferred by

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a type two transfer, as defined in s. 20.06(2), Florida Statutes,

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to the Bureau of Prosecution of the Division of Licensing and

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Enforcement of the Department of Gaming Control.

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     (7)(a) The following trust funds are transferred from the

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Division of Pari-mutuel Wagering of the Department of Business

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and Professional Regulation to the Bureau of Pari-mutuel Wagering

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within the Division of Gambling Oversight of the Department of

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Gaming:

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     1. Pari-mutuel Wagering Trust Fund.

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     2. Racing Scholarship Trust Fund.

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     (b) The Operating Trust Fund within the Department of the

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Lottery is transferred to the Division of the Lottery within the

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Department of Gaming Control.

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     Section 2.  Paragraph (e) of subsection (3) of section

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11.905, Florida Statutes, is amended to read:

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     11.905  Schedule for reviewing state agencies and advisory

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committees.--The following state agencies, including their

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advisory committees, or the following advisory committees of

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agencies shall be reviewed according to the following schedule:

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     (3)  Reviewed by July 1, 2012:

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     (e) Department of Gaming Control the Lottery.

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     Section 3.  Subsection (2) of section 20.165, Florida

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Statutes, is amended to read:

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     20.165  Department of Business and Professional

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Regulation.--There is created a Department of Business and

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Professional Regulation.

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     (2)  The following divisions of the Department of Business

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and Professional Regulation are established:

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     (a)  Division of Administration.

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     (b)  Division of Alcoholic Beverages and Tobacco.

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     (c)  Division of Certified Public Accounting.

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     1.  The director of the division shall be appointed by the

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secretary of the department, subject to approval by a majority of

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the Board of Accountancy.

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     2.  The offices of the division shall be located in

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Gainesville.

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     (d)  Division of Florida Land Sales, Condominiums, and

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Mobile Homes.

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     (e)  Division of Hotels and Restaurants.

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     (f) Division of Pari-mutuel Wagering.

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     (f)(g) Division of Professions.

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     (g)(h) Division of Real Estate.

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     1.  The director of the division shall be appointed by the

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secretary of the department, subject to approval by a majority of

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the Florida Real Estate Commission.

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     2.  The offices of the division shall be located in Orlando.

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     (i)  Division of Regulation.

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     (j)  Division of Technology, Licensure, and Testing.

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     Section 4. Section 20.317, Florida Statutes, is repealed.

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     Section 5.  Section 20.318, Florida Statutes, is created to

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read:

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     20.318 Department of Gaming Control.--There is created a

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Department of Gaming Control.

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     (1) GAMING COMMISSION.--There is created the Gaming

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Commission, composed of five members appointed by the Governor,

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subject to confirmation by the Senate. The commission members

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shall serve as agency head of the Department of Gaming Control.

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The commission shall be responsible for hiring and firing the

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executive director and general counsel.

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     (2) DIVISIONS.--The Department of Gaming Control shall

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consist of the following divisions:

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     (a) The Division of the Lottery.

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     (b) The Division of Licensing and Enforcement, which shall

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include the following bureaus.

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     1. The Bureau of Licensing.

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     2. The Bureau of Revenue and Audit.

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     3. The Bureau of Investigation.

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     4. The Bureau of Enforcement.

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     5. The Bureau of Prosecution.

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     (c) The Division of Gambling Oversight, which shall include

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the following bureaus:

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     1. The Bureau of Pari-mutuel Wagering.

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     2. The Bureau of Cardrooms.

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     3. The Bureau of Slot Machines.

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     4. The Bureau of Charitable Gaming.

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     5. The Bureau of Compulsive Gambling.

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     (3) ADVISORY OPINIONS.--The department shall provide

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advisory opinions when requested by any law enforcement official,

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state attorney, or entity licensed by the department relating to

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any the application of state gaming laws with respect to whether

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a particular act or device constitutes legal or illegal gambling

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under state laws and administrative rules adopted thereunder. A

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written record of all such opinions issued by the department,

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sequentially numbered, dated, and indexed by subject matter shall

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be retained. Repayment of a loan made from the fund may be

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collected by the method provided for in ss. 197.3632 and 197.3635

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for non-ad valorem assessments, and may also be collected by any

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alternative method that is authorized by law. Any such person or

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entity, acting in good faith upon an advisory opinion that such

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person or entity requested and received, is not subject to any

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criminal penalty provided for under state law for illegal

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gambling. The opinion, until amended or revoked, is binding on

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any person or entity who sought the opinion or with reference to

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whom the opinion was sought, unless material facts were omitted

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or misstated in the request for the advisory opinion. The

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department may adopt rules regarding the process for securing an

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advisory opinion and may require in those rules the submission of

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any potential gaming apparatus for testing by a licensed testing

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laboratory to prove or disproved its compliance with state law

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before the issuance of an opinion by the department.

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(4) STATE COMPLIANCE AGENCY.--The department shall serve as

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the state compliance agency that is responsible for oversight

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responsibilities under any tribal gaming compact entered into by

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the state.

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(5) LAW ENFORCEMENT OFFICERS.--The department may employ

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sworn law enforcement officers within the Bureau of Enforcement

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to enforce any criminal law, conduct any criminal investigation,

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or enforce the provisions of any statute or any other laws of

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this state related to gambling or the state lottery.

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(a) Each law enforcement officer shall meet the

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qualifications of law enforcement officers under s. 943.13 and

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shall be certified as a law enforcement officer by the Department

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of Law Enforcement under chapter 943. Upon certification, each

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law enforcement officer is subject to and shall have authority

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provided for law enforcement officers generally in chapter 901

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and shall have statewide jurisdiction. Each officer shall also

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have arrest authority as provided for state law enforcement

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officers in s. 901.15 and full law enforcement powers granted to

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other peace officers of this state, including the authority to

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make arrests, carry firearms, serve court process, and seize

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contraband and the proceeds of illegal activities.

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(b) The department may also appoint part-time, reserve, or

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auxiliary law enforcement officers under chapter 943.

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(c) Each law enforcement officer of the department, upon

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certification under s. 943.1395, has the same right and authority

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to carry arms as do the sheriffs of this state.

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(d) Each law enforcement officer in the state who is

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certified pursuant to chapter 943 has the same authority as law

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enforcement officers designated in this section to enforce the

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laws of this state as described in this subsection.

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     Section 6.  Section 24.103, Florida Statutes, is amended to

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read:

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     24.103  Definitions.--As used in this act:

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     (1) "Department" means the Department of Gaming Control the

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Lottery.

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     (2) "Division" means the Division of the Lottery.

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"Secretary" means the secretary of the department.

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     (3)  "Person" means any individual, firm, association, joint

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adventure, partnership, estate, trust, syndicate, fiduciary,

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corporation, or other group or combination and shall include any

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agency or political subdivision of the state.

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     (4)  "Major procurement" means a procurement for a contract

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for the printing of tickets for use in any lottery game,

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consultation services for the startup of the lottery, any goods

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or services involving the official recording for lottery game

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play purposes of a player's selections in any lottery game

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involving player selections, any goods or services involving the

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receiving of a player's selection directly from a player in any

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lottery game involving player selections, any goods or services

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involving the drawing, determination, or generation of winners in

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any lottery game, the security report services provided for in

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this act, or any goods and services relating to marketing and

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promotion which exceed a value of $25,000.

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     (5)  "Retailer" means a person who sells lottery tickets on

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behalf of the division department pursuant to a contract.

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     (6)  "Vendor" means a person who provides or proposes to

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provide goods or services to the division department, but does

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not include an employee of the division department, a retailer,

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or a state agency.

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     (7) "Commission" means the Gaming Commission.

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     Section 7.  Section 24.104, Florida Statutes, is amended to

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read:

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     24.104 Division of the Lottery Department; purpose.--The

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purpose of the division department is to operate the state

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lottery as authorized by s. 15, Art. X of the State Constitution

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so as to maximize revenues in a manner consonant with the dignity

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of the state and the welfare of its citizens.

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     Section 8.  Section 24.105, Florida Statutes, is amended to

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read:

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     24.105 Powers and duties of the division department.--The

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division department shall:

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     (1)  Have the authority to sue or be sued in the corporate

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name of the department and to adopt a corporate seal and symbol.

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     (2)  Supervise and administer the operation of the lottery

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in accordance with the provisions of this act and rules adopted

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pursuant thereto.

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     (3)  For purposes of any investigation or proceeding

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conducted by the division department, have the power to

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administer oaths, require affidavits, take depositions, issue

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subpoenas, and compel the attendance of witnesses and the

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production of books, papers, documents, and other evidence.

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     (4)  Submit monthly and annual reports to the Governor, the

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Chief Financial Officer, the President of the Senate, and the

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Speaker of the House of Representatives disclosing the total

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lottery revenues, prize disbursements, and other expenses of the

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division department during the preceding month. The annual report

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shall additionally describe the organizational structure of the

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division department, including its hierarchical structure, and

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shall identify the divisions and bureaus created by the

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commission secretary and summarize the divisions' departmental

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functions performed by each.

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     (5)  Adopt by rule a system of internal audits.

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     (6)  Maintain weekly or more frequent records of lottery

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transactions, including the distribution of tickets to retailers,

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revenues received, claims for prizes, prizes paid, and other

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financial transactions of the division department.

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     (7)  Make a continuing study of the lottery to ascertain any

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defects of this act or rules adopted thereunder which could

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result in abuses in the administration of the lottery; make a

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continuing study of the operation and the administration of

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similar laws in other states and of federal laws which may affect

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the lottery; and make a continuing study of the reaction of the

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public to existing and potential features of the lottery.

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     (8)  Conduct such market research as is necessary or

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appropriate, which may include an analysis of the demographic

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characteristics of the players of each lottery game and an

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analysis of advertising, promotion, public relations, incentives,

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and other aspects of communications.

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     (9)  Adopt rules governing the establishment and operation

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of the state lottery, including:

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     (a)  The type of lottery games to be conducted, except that:

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     1. The No name of an elected official may not shall appear

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on the ticket or play slip of any lottery game or on any prize or

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on any instrument used for the payment of prizes, unless such

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prize is in the form of a state warrant.

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     2. No Coins or currency may not shall be dispensed from any

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electronic computer terminal or device used in any lottery game.

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     3. Other than as provided in subparagraph 4., a no terminal

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or device may not be used for any lottery game that is which may

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be operated solely by the player without the assistance of the

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retailer.

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     4. The only player-activated machine that which may be used

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utilized is a machine that which dispenses instant lottery game

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tickets following the insertion of a coin or currency by a ticket

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purchaser. To be authorized a machine must: be under the

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supervision and within the direct line of sight of the lottery

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retailer to ensure that the machine is monitored and only

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operated only by persons at least 18 years of age; be capable of

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being electronically deactivated by the retailer to prohibit use

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by persons less than 18 years of age through the use of a lockout

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device that maintains the machine's deactivation for a period of

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no less than 5 minutes; and be designed to prevent its use or

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conversion for use in any manner other than the dispensing of

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instant lottery tickets. Authorized machines may dispense change

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to players purchasing tickets but may not be used utilized for

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paying the holders of winning tickets of any kind. At least one

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clerk must be on duty at the lottery retailer while the machine

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is in operation. However, at least two clerks must be on duty at

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any lottery location which has violated s. 24.1055.

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     (b)  The sales price of tickets.

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     (c)  The number and sizes of prizes.

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     (d)  The method of selecting winning tickets. However, if a

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lottery game involves a drawing, the drawing shall be public and

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witnessed by an accountant employed by an independent certified

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public accounting firm. The equipment used in the drawing shall

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be inspected before and after the drawing.

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     (e)  The manner of payment of prizes to holders of winning

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tickets.

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     (f)  The frequency of drawings or selections of winning

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tickets.

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     (g)  The number and type of locations at which tickets may

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be purchased.

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     (h)  The method to be used in selling tickets.

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     (i)  The manner and amount of compensation of retailers.

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     (j)  Such other matters necessary or desirable for the

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efficient or economical operation of the lottery or for the

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convenience of the public.

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     (10)  Notwithstanding the provisions of chapter 286, have

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the authority to hold patents, copyrights, trademarks, and

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service marks and enforce its rights with respect thereto. The

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division department shall notify the Department of State in

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writing whenever property rights by patent, copyright, or

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trademark are secured by the division department.

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     (11)  In the selection of games and method of selecting

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winning tickets, be sensitive to the impact of the lottery upon

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the pari-mutuel industry and, accordingly, the division

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department may use for any game the theme of horseracing,

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dogracing, or jai alai and may allow a lottery game to be based

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upon a horserace, dograce, or jai alai activity so long as the

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outcome of such lottery game is determined entirely by chance.

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     (12)(a)  Determine by rule information relating to the

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operation of the lottery which is confidential and exempt from

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the provisions of s. 119.07(1) and s. 24(a), Art. I of the State

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Constitution. Such information includes trade secrets; security

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measures, systems, or procedures; security reports; information

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concerning bids or other contractual data, the disclosure of

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which would impair the efforts of the division department to

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contract for goods or services on favorable terms; employee

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personnel information unrelated to compensation, duties,

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qualifications, or responsibilities; and information obtained by

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the Division of Licensing and Enforcement Security pursuant to

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its investigations which is otherwise confidential. To be deemed

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confidential, the information must be necessary to the security

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and integrity of the lottery. Confidential information may be

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released to other governmental entities as needed in connection

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with the performance of their duties. The receiving governmental

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entity shall retain the confidentiality of such information as

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provided for in this subsection.

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     (b)  Maintain the confidentiality of the street address and

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the telephone number of a winner, in that such information is

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confidential and exempt from the provisions of s. 119.07(1) and

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s. 24(a), Art. I of the State Constitution, unless the winner

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consents to the release of such information or as provided for in

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s. 24.115(4) or s. 409.2577.

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     (c)  Any information made confidential and exempt from the

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provisions of s. 119.07(1) under this subsection shall be

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disclosed to the Auditor General, to the Office of Program Policy

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Analysis and Government Accountability, or to the independent

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auditor selected under s. 24.123 upon such person's request

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therefor. If the President of the Senate or the Speaker of the

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House of Representatives certifies that information made

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confidential under this subsection is necessary for effecting

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legislative changes, the requested information shall be disclosed

472

to him or her, and he or she may disclose such information to

473

members of the Legislature and legislative staff as necessary to

474

effect such purpose.

475

     (13)  Have the authority to perform any of the functions of

476

the Department of Management Services under chapter 255, chapter

477

273, chapter 281, chapter 283, or chapter 287, or any rules

478

adopted under any such chapter, and may grant approvals provided

479

for under any such chapter or rules. If the division department

480

finds, by rule, that compliance with any such chapter would

481

impair or impede the effective or efficient operation of the

482

lottery, the division department may adopt rules providing

483

alternative procurement procedures. Such alternative procedures

484

shall be designed to allow the division department to evaluate

485

competing proposals and select the proposal that provides the

486

greatest long-term benefit to the state with respect to the

487

quality of the products or services, dependability and integrity

488

of the vendor, dependability of the vendor's products or

489

services, security, competence, timeliness, and maximization of

490

gross revenues and net proceeds over the life of the contract.

491

     (14)  Have the authority to acquire real property and make

492

improvements thereon. The title to such property shall be vested

493

in the Board of Trustees of the Internal Improvement Trust Fund.

494

The board shall give the division department preference in

495

leasing state-owned lands under the board's control and may not

496

exercise any jurisdiction over lands purchased or leased by the

497

division department while such lands are actively used by the

498

division department. Actions of the division department under

499

this subsection are exempt from the time limitations and

500

deadlines of chapter 253.

501

     (15)  Have the authority to charge fees to persons applying

502

for contracts as vendors or retailers, which fees are reasonably

503

calculated to cover the costs of investigations and other

504

activities related to the processing of the application.

505

     (16)  Enter into contracts for the purchase, lease, or

506

lease-purchase of such goods and services as are necessary for

507

the operation and promotion of the state lottery, including

508

assistance provided by any governmental agency.

509

     (17)  In accordance with the provisions of this act, enter

510

into contracts with retailers so as to provide adequate and

511

convenient availability of tickets to the public for each game.

512

     (18)  Have the authority to enter into agreements with other

513

states for the operation and promotion of a multistate lottery if

514

such agreements are in the best interest of the state lottery.

515

The authority conferred by this subsection is not effective until

516

1 year after the first day of lottery ticket sales.

517

     (19) Employ a division director, bureau chiefs, directors

518

and other staff as may be necessary to carry out the provisions

519

of this act; however:

520

     (a) A No person may not shall be employed by the division

521

department who has been convicted of, or entered a plea of guilty

522

or nolo contendere to, a felony committed in the preceding 10

523

years, regardless of adjudication, unless the division department

524

determines that:

525

     1.  The person has been pardoned or his or her civil rights

526

have been restored; or

527

     2.  Subsequent to such conviction or entry of plea the

528

person has engaged in the kind of law-abiding commerce and good

529

citizenship that would reflect well upon the integrity of the

530

lottery.

531

     (b) An No officer or employee of the division department

532

having decisionmaking authority may not shall participate in any

533

decision involving any vendor or retailer with whom the officer

534

or employee has a financial interest. No Such officer or employee

535

may not participate in any decision involving any vendor or

536

retailer with whom the officer or employee has discussed

537

employment opportunities without the approval of the commission

538

secretary or, if such person officer is a member of the

539

commission the secretary, without the approval of the Governor.

540

Any officer or employee of the division department shall notify

541

the commission secretary of any such discussion or, if such

542

person is a member of the commission officer is the secretary, he

543

or she shall notify the Governor. A violation of this paragraph

544

is punishable in accordance with s. 112.317.

545

     (c) An No officer or employee of the division department

546

who leaves the employ of the department may not shall represent

547

any vendor or retailer before the division department regarding

548

any specific matter in which the officer or employee was involved

549

while employed by the division department, for a period of 1 year

550

following cessation of employment with the division department. A

551

violation of this paragraph is punishable in accordance with s.

552

112.317.

553

     (d) The division department shall establish and maintain a

554

personnel program for its employees, including a personnel

555

classification and pay plan which may provide any or all of the

556

benefits provided in the Senior Management Service or Selected

557

Exempt Service. Each officer or employee of the division

558

department shall be a member of the Florida Retirement System.

559

The retirement class of each officer or employee shall be the

560

same as other persons performing comparable functions for other

561

agencies. Employees of the division department shall serve at the

562

pleasure of the commission secretary and shall be subject to

563

suspension, dismissal, reduction in pay, demotion, transfer, or

564

other personnel action at the discretion of the commission

565

secretary. Such personnel actions are exempt from the provisions

566

of chapter 120. All employees of the division department are

567

exempt from the Career Service System provided in chapter 110

568

and, notwithstanding the provisions of s. 110.205(5), are not

569

included in either the Senior Management Service or the Selected

570

Exempt Service. However, all employees of the division department

571

are subject to all standards of conduct adopted by rule for

572

career service and senior management employees pursuant to

573

chapter 110. In the event of a conflict between standards of

574

conduct applicable to employees of the Department of Gaming

575

Control the Lottery the more restrictive standard shall apply.

576

Interpretations as to the more restrictive standard may be

577

provided by the Commission on Ethics upon request of an advisory

578

opinion pursuant to s. 112.322(3)(a), for purposes of this

579

subsection the opinion shall be considered final action.

580

     (20)  Adopt by rule a code of ethics for officers and

581

employees of the division department which supplements the

582

standards of conduct for public officers and employees imposed by

583

law.

584

     Section 9.  Section 24.107, Florida Statutes, is amended to

585

read:

586

     24.107  Advertising and promotion of lottery games.--

587

     (1)  The Legislature recognizes the need for extensive and

588

effective advertising and promotion of lottery games. It is the

589

intent of the Legislature that such advertising and promotion be

590

consistent with the dignity and integrity of the state. In

591

advertising the value of a prize that will be paid over a period

592

of years, the division department may refer to the sum of all

593

prize payments over the period.

594

     (2) The division department may act as a retailer and may

595

conduct promotions that which involve the dispensing of lottery

596

tickets free of charge.

597

     Section 10.  Section 24.108, Florida Statutes, is amended to

598

read:

599

     24.108 Division of Licensing and Enforcement Security;

600

duties; security report.--

601

     (1) The commission secretary shall appoint a director of

602

the Division of Licensing and Enforcement Security who is

603

qualified by training and experience in law enforcement or

604

security to supervise, direct, coordinate, and administer all

605

activities of the division.

606

     (2)  The director and all investigators employed by the

607

division shall meet the requirements for employment and

608

appointment provided by s. 943.13 and shall satisfy the

609

requirements for certification established by the Criminal

610

Justice Standards and Training Commission pursuant to chapter

611

943. The director and such investigators shall be designated law

612

enforcement officers and shall have the power to investigate and

613

arrest for any alleged violation of this act or any rule adopted

614

pursuant thereto, or any law of this state. Such law enforcement

615

officers may enter upon any premises in which lottery tickets are

616

sold, manufactured, printed, or stored within the state for the

617

performance of their lawful duties and may take with them any

618

necessary equipment, and such entry does shall not constitute a

619

trespass. In any instance in which there is reason to believe

620

that a violation has occurred, such officers have the authority,

621

without warrant, to search and inspect any premises where the

622

violation is alleged to have occurred or is occurring. Any such

623

officer may, consistent with the United States and Florida

624

Constitutions, seize or take possession of any papers, records,

625

tickets, currency, or other items related to any alleged

626

violation.

627

     (3)  The Department of Law Enforcement shall, at the request

628

of the Division of Licensing and Enforcement Security, perform

629

full criminal background investigations on all employees of the

630

Department of Gaming Control the Lottery at the level of the

631

commission secretary, division director, or bureau chief and at

632

any level within the Division of Licensing and Enforcement

633

Security, including applicants for employment. The Department of

634

Gaming Control the Lottery shall reimburse the Department of Law

635

Enforcement for the actual costs of such investigations.

636

     (4) The Division of Licensing and Enforcement shall conduct

637

such investigations of vendors, retailers, and employees of the

638

Division of the Lottery department, including applicants for

639

contract or employment, as are necessary to ensure the security

640

and integrity of the operation of the state lottery. The Division

641

of the Lottery department may require persons subject to such

642

investigations to provide such information, including

643

fingerprints, as is needed by the Department of Law Enforcement

644

for processing or as is otherwise necessary to facilitate access

645

to state and federal criminal history information.

646

     (5)  The Department of Law Enforcement shall provide

647

assistance in obtaining criminal history information relevant to

648

investigations required for honest, secure, and exemplary lottery

649

operations, and such other assistance as may be requested by the

650

commission secretary and agreed to by the executive director of

651

the Department of Law Enforcement. Any other state agency,

652

including the Department of Business and Professional Regulation

653

and the Department of Revenue, shall, upon request, provide the

654

Department of Gaming Control the Lottery with any information

655

relevant to any investigation conducted pursuant to this act. The

656

Department of Gaming Control the Lottery shall maintain the

657

confidentiality of any confidential information it receives from

658

any other agency. The Department of Gaming Control the Lottery

659

shall reimburse any agency for the actual cost of providing any

660

assistance pursuant to this subsection.

661

     (6) The Division of Licensing and Enforcement shall monitor

662

ticket validation and lottery drawings.

663

     (7)(a)  After the first full year of sales of tickets to the

664

public, or sooner if the commission secretary deems necessary,

665

the Division of the Lottery department shall engage an

666

independent firm experienced in security procedures, including,

667

but not limited to, computer security and systems security, to

668

conduct a comprehensive study and evaluation of all aspects of

669

security in the operation of the Division of the Lottery

670

department.

671

     (b)  The portion of the security report containing the

672

overall evaluation of the Division of the Lottery department in

673

terms of each aspect of security shall be presented to the

674

Governor, the President of the Senate, and the Speaker of the

675

House of Representatives. The portion of the security report

676

containing specific recommendations shall be confidential and

677

shall be presented only to the commission secretary, the

678

Governor, and the Auditor General; however, upon certification

679

that such information is necessary for the purpose of effecting

680

legislative changes, such information shall be disclosed to the

681

President of the Senate and the Speaker of the House of

682

Representatives, who may disclose such information to members of

683

the Legislature and legislative staff as necessary to effect such

684

purpose. However, any person who receives a copy of such

685

information or other information which is confidential pursuant

686

to this act or rule of the Division of the Lottery department

687

shall maintain its confidentiality. The confidential portion of

688

the report is exempt from the provisions of s. 119.07(1) and s.

689

24(a), Art. I of the State Constitution.

690

     (c)  Thereafter, similar studies of security shall be

691

conducted as the Division of the Lottery department deems

692

appropriate but at least once every 2 years.

693

     Section 11.  Section 24.109, Florida Statutes, is amended to

694

read:

695

     24.109  Administrative procedure.--

696

     (1) The division department may at any time adopt emergency

697

rules pursuant to s. 120.54. The Legislature finds that such

698

emergency rulemaking power is necessary for the preservation of

699

the rights and welfare of the people in order to provide

700

additional funds to benefit the public. The Legislature further

701

finds that the unique nature of state lottery operations

702

requires, from time to time, that the division department respond

703

as quickly as is practicable to changes in the marketplace.

704

Therefore, in adopting such emergency rules, the division

705

department need not make the findings required by s.

706

120.54(4)(a). Emergency rules adopted under this section are

707

exempt from s. 120.54(4)(c) and shall remain in effect until

708

replaced by other emergency rules or by rules adopted under the

709

nonemergency rulemaking procedures of the Administrative

710

Procedure Act.

711

     (2) The provisions of s. 120.57(3) apply to the division's

712

department's contracting process, except that:

713

     (a)  A formal written protest of any decision, intended

714

decision, or other action subject to protest shall be filed

715

within 72 hours after receipt of notice of the decision, intended

716

decision, or other action.

717

     (b)  In a competitive procurement protest, including the

718

rejection of all bids, proposals, or replies, the administrative

719

law judge may shall not substitute his or her procurement

720

decision for the agency's procurement decision but shall review

721

the intended agency action only to determine if the agency action

722

is illegal, arbitrary, dishonest, or fraudulent.

723

     (c)  As an alternative to any provision in s. 120.57(3)(c),

724

the division department may proceed with the bid solicitation or

725

contract award process when the director secretary of the

726

division department sets forth in writing particular facts and

727

circumstances that which require the continuance of the bid

728

solicitation process or the contract award process in order to

729

avoid a substantial loss of funding to the state or to avoid

730

substantial disruption of the timetable for any scheduled lottery

731

game.

732

     Section 12.  Section 24.111, Florida Statutes, is amended to

733

read:

734

     24.111  Vendors; disclosure and contract requirements.--

735

     (1) The division department may enter into contracts for

736

the purchase, lease, or lease-purchase of such goods or services

737

as are necessary for effectuating the purposes of this act. The

738

division department may not contract with any person or entity

739

for the total operation and administration of the state lottery

740

established by this act but may make procurements that which

741

integrate functions such as lottery game design, supply of goods

742

and services, and advertising. In all procurement decisions, the

743

division department shall take into account the particularly

744

sensitive nature of the state lottery and shall consider the

745

competence, quality of product, experience, and timely

746

performance of the vendors in order to promote and ensure

747

security, honesty, fairness, and integrity in the operation and

748

administration of the lottery and the objective of raising net

749

revenues for the benefit of the public purpose described in this

750

act.

751

     (2) The division department shall investigate the financial

752

responsibility, security, and integrity of each vendor with which

753

it intends to negotiate a contract for major procurement. Such

754

investigation may include an investigation of the financial

755

responsibility, security, and integrity of any or all persons

756

whose names and addresses are required to be disclosed pursuant

757

to paragraph (a). Any person who submits a bid, proposal, or

758

offer as part of a major procurement must, at the time of

759

submitting such bid, proposal, or offer, provide the following:

760

     (a)  A disclosure of the vendor's name and address and, as

761

applicable, the name and address and any additional disclosures

762

necessary for an investigation of the financial responsibility,

763

security, and integrity of the following:

764

     1.  If the vendor is a corporation, the officers, directors,

765

and each stockholder in such corporation; except that, in the

766

case of owners of equity securities of a publicly traded

767

corporation, only the names and addresses of those known to the

768

corporation to own beneficially 5 percent or more of such

769

securities need be disclosed.

770

     2.  If the vendor is a trust, the trustee and all persons

771

entitled to receive income or benefit from the trust.

772

     3.  If the vendor is an association, the members, officers,

773

and directors.

774

     4.  If the vendor is a partnership or joint venture, all of

775

the general partners, limited partners, or joint venturers.

776

777

If the vendor subcontracts any substantial portion of the work to

778

be performed to a subcontractor, the vendor shall disclose all of

779

the information required by this paragraph for the subcontractor

780

as if the subcontractor were itself a vendor.

781

     (b)  A disclosure of all the states and jurisdictions in

782

which the vendor does business and of the nature of that business

783

for each such state or jurisdiction.

784

     (c)  A disclosure of all the states and jurisdictions in

785

which the vendor has contracts to supply gaming goods or

786

services, including, but not limited to, lottery goods and

787

services, and of the nature of the goods or services involved for

788

each such state or jurisdiction.

789

     (d)  A disclosure of all the states and jurisdictions in

790

which the vendor has applied for, has sought renewal of, has

791

received, has been denied, has pending, or has had revoked a

792

gaming license or contract of any kind and of the disposition of

793

such in each such state or jurisdiction. If any gaming license or

794

contract has been revoked or has not been renewed or any gaming

795

license or contract application has been either denied or is

796

pending and has remained pending for more than 6 months, all of

797

the facts and circumstances underlying this failure to receive

798

such a license must be disclosed.

799

     (e)  A disclosure of the details of any conviction or

800

judgment of a state or federal court of the vendor of any felony

801

or any other criminal offense other than a traffic violation.

802

     (f)  A disclosure of the details of any bankruptcy,

803

insolvency, reorganization, or any pending litigation of the

804

vendor.

805

     (g)  Such additional disclosures and information as the

806

division department may determine to be appropriate for the

807

procurement involved.

808

     (h) The division department shall lease all instant ticket

809

vending machines.

810

     (i) The division shall department will require a

811

performance bond for the duration of the contract.

812

813

The division may department shall not contract with any vendor

814

who fails to make the disclosures required by this subsection,

815

and any contract with a vendor who has failed to make the

816

required disclosures is shall be unenforceable. Any contract with

817

any vendor who does not comply with such requirements for

818

periodically updating such disclosures during the tenure of such

819

contract as may be specified in such contract may be terminated

820

by the division department. This subsection shall be construed

821

broadly and liberally to achieve the ends of full disclosure of

822

all information necessary to allow for a full and complete

823

evaluation by the division department of the competence,

824

integrity, background, and character of vendors for major

825

procurements.

826

     (3) The division department may require disclosure of the

827

information required by subsection (2) from any vendor if the

828

division department finds that such disclosure is necessary to

829

protect the dignity and integrity of the lottery and in the best

830

interests of the state.

831

     (4) The division may not enter into a No contract for a

832

major procurement with any vendor shall be entered into if that

833

vendor, or any of the vendor's officers, directors, trustees,

834

partners, or joint venturers whose names and addresses are

835

required to be disclosed pursuant to paragraph (2)(a), has been

836

convicted of, or entered a plea of guilty or nolo contendere to,

837

a felony committed in the preceding 10 years, regardless of

838

adjudication, unless the division department determines that:

839

     (a)  The vendor or such individual has been pardoned or the

840

vendor's or such individual's civil rights have been restored;

841

     (b)  Subsequent to such conviction or entry of plea the

842

vendor or such individual has engaged in the kind of law-abiding

843

commerce and good citizenship that would reflect well upon the

844

integrity of the lottery; or

845

     (c)  If the vendor is not an individual, such vendor has

846

terminated its relationship with the individual whose actions

847

directly contributed to the vendor's conviction or entry of plea.

848

     (5)  Each vendor in a major procurement in excess of

849

$25,000, and any other vendor if the division department deems it

850

necessary to protect the state's financial interest, shall, at

851

the time of executing the contract with the division department,

852

post an appropriate bond with the division department in an

853

amount determined by the division department to be adequate to

854

protect the state's interests, but not higher than the full

855

amount estimated to be paid annually to the vendor under the

856

contract. In lieu of the bond, a vendor may, to assure the

857

faithful performance of its obligations, file with the division

858

department an irrevocable letter of credit acceptable to the

859

division department in an amount determined by the division

860

department to be adequate to protect the state's interests or

861

deposit and maintain with the Chief Financial Officer securities

862

that are interest bearing or accruing and that, with the

863

exception of those specified in paragraphs (a) and (b), are rated

864

in one of the four highest classifications by an established

865

nationally recognized investment rating service. Securities

866

eligible under this subsection shall be limited to:

867

     (a)  Certificates of deposit issued by solvent banks or

868

savings associations organized and existing under the laws of

869

this state or under the laws of the United States and having

870

their principal place of business in this state.

871

     (b)  United States bonds, notes, and bills for which the

872

full faith and credit of the government of the United States is

873

pledged for the payment of principal and interest.

874

     (c)  General obligation bonds and notes of any political

875

subdivision of the state.

876

     (d)  Corporate bonds of any corporation that is not an

877

affiliate or subsidiary of the depositor.

878

879

Such securities shall be held in trust and shall have at all

880

times a market value at least equal to an amount determined by

881

the department to be adequate to protect the state's interests,

882

which amount shall not be set higher than the full amount

883

estimated to be paid annually to the vendor under contract.

884

     (6)  Every contract in excess of $25,000 entered into by the

885

division department pursuant to this section shall contain a

886

provision for payment of liquidated damages to the division

887

department for any breach of contract by the vendor. The division

888

department may require a liquidated damages provision in any

889

contract if the division department deems it necessary to protect

890

the state's financial interest.

891

     (7) Each vendor must shall be qualified to do business in

892

this state and shall file appropriate tax returns as provided by

893

the laws of this state, and all contracts shall be governed by

894

the laws of this state.

895

     Section 13.  Section 24.112, Florida Statutes, is amended to

896

read:

897

     24.112  Retailers of lottery tickets.--

898

     (1) The division department shall adopt promulgate rules

899

specifying the terms and conditions for contracting with

900

retailers who will best serve the public interest and promote the

901

sale of lottery tickets.

902

     (2) In the selection of retailers, the division department

903

shall consider factors such as financial responsibility,

904

integrity, reputation, accessibility of the place of business or

905

activity to the public, security of the premises, the sufficiency

906

of existing retailers to serve the public convenience, and the

907

projected volume of the sales for the lottery game involved. In

908

the consideration of these factors, the division department may

909

require the information it deems necessary of any person applying

910

for authority to act as a retailer. However, the division

911

department may not establish a limitation upon the number of

912

retailers and shall make every effort to allow small business

913

participation as retailers. It is the intent of the Legislature

914

that retailer selections be based on business considerations and

915

the public convenience and that retailers be selected without

916

regard to political affiliation.

917

     (3) The division may department shall not contract with any

918

person as a retailer who:

919

     (a)  Is less than 18 years of age.

920

     (b)  Is engaged exclusively in the business of selling

921

lottery tickets; however, this paragraph does shall not preclude

922

the division department from selling lottery tickets.

923

     (c)  Has been convicted of, or entered a plea of guilty or

924

nolo contendere to, a felony committed in the preceding 10 years,

925

regardless of adjudication, unless the division department

926

determines that:

927

     1.  The person has been pardoned or the person's civil

928

rights have been restored;

929

     2.  Subsequent to such conviction or entry of plea the

930

person has engaged in the kind of law-abiding commerce and good

931

citizenship that would reflect well upon the integrity of the

932

lottery; or

933

     3.  If the person is a firm, association, partnership,

934

trust, corporation, or other entity, the person has terminated

935

its relationship with the individual whose actions directly

936

contributed to the person's conviction or entry of plea.

937

     (4) The division department shall issue a certificate of

938

authority to each person with whom it contracts as a retailer for

939

purposes of display pursuant to subsection (6). The issuance of

940

the certificate does shall not confer upon the retailer any right

941

apart from that specifically granted in the contract. The

942

authority to act as a retailer is shall not be assignable or

943

transferable.

944

     (5) Any contract executed by the division department

945

pursuant to this section must shall specify the reasons for any

946

suspension or termination of the contract by the division

947

department, including, but not limited to:

948

     (a)  Commission of a violation of this act or rule adopted

949

pursuant thereto.

950

     (b)  Failure to accurately account for lottery tickets,

951

revenues, or prizes as required by the division department.

952

     (c)  Commission of any fraud, deceit, or misrepresentation.

953

     (d)  Insufficient sale of tickets.

954

     (e)  Conduct prejudicial to public confidence in the

955

lottery.

956

     (f)  Any material change in any matter considered by the

957

division department in executing the contract with the retailer.

958

     (6)  Every retailer shall post and keep conspicuously

959

displayed in a location on the premises accessible to the public

960

its certificate of authority and, with respect to each game, a

961

statement supplied by the division department of the estimated

962

odds of winning some prize for the game.

963

     (7) A No contract with a retailer may not shall authorize

964

the sale of lottery tickets at more than one location, and a

965

retailer may sell lottery tickets only at the location stated on

966

the certificate of authority.

967

     (8)  With respect to any retailer whose rental payments for

968

premises are contractually computed, in whole or in part, on the

969

basis of a percentage of retail sales, and where such computation

970

of retail sales is not explicitly defined to include sales of

971

tickets in a state-operated lottery, the compensation received by

972

the retailer from the division department shall be deemed to be

973

the amount of the retail sale for the purposes of such

974

contractual compensation.

975

     (9)(a) The division department may require every retailer

976

to post an appropriate bond as determined by the division

977

department, using an insurance company acceptable to the division

978

department, in an amount not to exceed twice the average lottery

979

ticket sales of the retailer for the period within which the

980

retailer is required to remit lottery funds to the division

981

department. For the first 90 days of sales of a new retailer, the

982

amount of the bond may not exceed twice the average estimated

983

lottery ticket sales for the period within which the retailer is

984

required to remit lottery funds to the division department. This

985

paragraph does shall not apply to lottery tickets that which are

986

prepaid by the retailer.

987

     (b) In lieu of such bond, the division department may

988

purchase blanket bonds covering all or selected retailers or may

989

allow a retailer to deposit and maintain with the Chief Financial

990

Officer securities that are interest bearing or accruing and

991

that, with the exception of those specified in subparagraphs 1.

992

and 2., are rated in one of the four highest classifications by

993

an established nationally recognized investment rating service.

994

Securities eligible under this paragraph shall be limited to:

995

     1.  Certificates of deposit issued by solvent banks or

996

savings associations organized and existing under the laws of

997

this state or under the laws of the United States and having

998

their principal place of business in this state.

999

     2.  United States bonds, notes, and bills for which the full

1000

faith and credit of the government of the United States is

1001

pledged for the payment of principal and interest.

1002

     3.  General obligation bonds and notes of any political

1003

subdivision of the state.

1004

     4.  Corporate bonds of any corporation that is not an

1005

affiliate or subsidiary of the depositor.

1006

1007

Such securities shall be held in trust and shall have at all

1008

times a market value at least equal to an amount required by the

1009

division department.

1010

     (10) Every contract entered into by the division department

1011

pursuant to this section must shall contain a provision for

1012

payment of liquidated damages to the division department for any

1013

breach of contract by the retailer.

1014

     (11) The division department shall establish procedures by

1015

which each retailer shall account for all tickets sold by the

1016

retailer and account for all funds received by the retailer from

1017

such sales. The contract with each retailer must shall include

1018

provisions relating to the sale of tickets, payment of moneys to

1019

the division department, reports, service charges, and interest

1020

and penalties, if necessary, as the division deems department

1021

shall deem appropriate.

1022

     (12) A No payment by a retailer to the division department

1023

for tickets may not shall be in cash. All such payments must

1024

shall be in the form of a check, bank draft, electronic fund

1025

transfer, or other financial instrument authorized by the

1026

division director secretary.

1027

     (13)  Each retailer shall provide accessibility for disabled

1028

persons on habitable grade levels. This subsection does not apply

1029

to a retail location that which has an entrance door threshold

1030

more than 12 inches above ground level. As used in this

1031

subsection herein and for purposes of this subsection only, the

1032

term "accessibility for disabled persons on habitable grade

1033

levels" means that retailers shall provide ramps, platforms,

1034

aisles and pathway widths, turnaround areas, and parking spaces

1035

to the extent these are required for the retailer's premises by

1036

the particular jurisdiction where the retailer is located.

1037

Accessibility shall be required to only one point of sale of

1038

lottery tickets for each lottery retailer location. The

1039

requirements of this subsection shall be deemed to have been met

1040

if, in lieu of the foregoing, disabled persons can purchase

1041

tickets from the retail location by means of a drive-up window,

1042

provided the hours of access at the drive-up window are not less

1043

than those provided at any other entrance at that lottery

1044

retailer location. Inspections for compliance with this

1045

subsection shall be performed by those enforcement authorities

1046

responsible for enforcement pursuant to s. 553.80 in accordance

1047

with procedures established by those authorities. Those

1048

enforcement authorities shall provide to the Division Department

1049

of the Lottery a certification of noncompliance for any lottery

1050

retailer not meeting such requirements.

1051

     (14) The division director secretary may, after filing with

1052

the Department of State his or her manual signature certified by

1053

the division director secretary under oath, execute or cause to

1054

be executed contracts between the division department and

1055

retailers by means of engraving, imprinting, stamping, or other

1056

facsimile signature.

1057

     Section 14.  Section 24.113, Florida Statutes, is amended to

1058

read:

1059

     24.113  Minority participation.--

1060

     (1) It is the intent of the Legislature that the division

1061

department encourage participation by minority business

1062

enterprises as defined in s. 288.703. Accordingly, 15 percent of

1063

the retailers shall be minority business enterprises as defined

1064

in s. 288.703(2); however, no more than 35 percent of such

1065

retailers shall be owned by the same type of minority person, as

1066

defined in s. 288.703(3). The division department is encouraged

1067

to meet the minority business enterprise procurement goals set

1068

forth in s. 287.09451 in the procurement of commodities,

1069

contractual services, construction, and architectural and

1070

engineering services. This section does shall not preclude or

1071

prohibit a minority person from competing for any other retailing

1072

or vending agreement awarded by the division department.

1073

     (2) The division shall department is directed to undertake

1074

training programs and other educational activities to enable

1075

minority persons to compete for such contracts on an equal basis.

1076

     Section 15.  Section 24.114, Florida Statutes, is amended to

1077

read:

1078

     24.114  Bank deposits and control of lottery transactions.--

1079

     (1)  All moneys received by each retailer from the operation

1080

of the state lottery, including, but not limited to, all ticket

1081

sales, interest, gifts, and donations, less the amount retained

1082

as compensation for the sale of the tickets and the amount paid

1083

out as prizes, shall be remitted to the division department or

1084

deposited in a qualified public depository, as defined in s.

1085

280.02, as directed by the division department. The division is

1086

responsible department shall have the responsibility for all

1087

administrative functions related to the receipt of funds. The

1088

division department may also require each retailer to file with

1089

the division department reports of the retailer's receipts and

1090

transactions in the sale of lottery tickets in such form and

1091

containing such information as the division department may

1092

require. The division department may require any person,

1093

including a qualified public depository, to perform any function,

1094

activity, or service in connection with the operation of the

1095

lottery as it may deem advisable pursuant to this act and rules

1096

of the division department, and such functions, activities, or

1097

services shall constitute lawful functions, activities, and

1098

services of such person.

1099

     (2) The division department may require retailers to

1100

establish separate electronic funds transfer accounts for the

1101

purpose of receiving moneys from ticket sales, making payments to

1102

the division department, and receiving payments from the division

1103

department.

1104

     (3) Each retailer is liable to the division department for

1105

any and all tickets accepted or generated by any employee or

1106

representative of that retailer, and the tickets shall be deemed

1107

to have been purchased by the retailer unless returned to the

1108

division department within the time and in the manner prescribed

1109

by the division department. All moneys received by retailers from

1110

the sale of lottery tickets, less the amount retained as

1111

compensation for the sale of tickets and the amount paid out as

1112

prizes by the retailer, shall be held in trust prior to delivery

1113

to the division department or electronic transfer to the

1114

Operating Trust Fund.

1115

     Section 16.  Section 24.115, Florida Statutes, is amended to

1116

read:

1117

     24.115  Payment of prizes.--

1118

     (1) The division department shall adopt promulgate rules to

1119

establish a system of verifying the validity of tickets claimed

1120

to win prizes and to effect payment of such prizes; however:

1121

     (a)  The right of any person to a prize, other than a prize

1122

that is payable in installments over time, is not assignable.

1123

However, any prize, to the extent that it has not been assigned

1124

or encumbered pursuant to s. 24.1153, may be paid to the estate

1125

of a deceased prize winner or to a person designated pursuant to

1126

an appropriate court order. A prize that is payable in

1127

installments over time is assignable, but only pursuant to an

1128

appropriate court order as provided in s. 24.1153.

1129

     (b) A No prize may not shall be paid to any person under

1130

the age of 18 years unless the winning ticket was lawfully

1131

purchased and made a gift to the minor. In such case, the

1132

division department shall direct payment to an adult member of

1133

the minor's family or the legal guardian of the minor as

1134

custodian for the minor. The person named as custodian shall have

1135

the same powers and duties as prescribed for a custodian pursuant

1136

to chapter 710, the Florida Uniform Transfers to Minors Act.

1137

     (c) A No prize may not be paid arising from claimed tickets

1138

that are stolen, counterfeit, altered, fraudulent, unissued,

1139

produced or issued in error, unreadable, not received or not

1140

recorded by the division department by applicable deadlines,

1141

lacking in captions that confirm and agree with the lottery play

1142

symbols as appropriate to the lottery game involved, or not in

1143

compliance with such additional specific rules and public or

1144

confidential validation and security tests of the division

1145

department appropriate to the particular lottery game involved.

1146

     (d) A No particular prize in any lottery game may not be

1147

paid more than once, and in the event of a binding determination

1148

that more than one claimant is entitled to a particular prize,

1149

the sole remedy of such claimants is the award to each of them of

1150

an equal share in the prize.

1151

     (e)  For the convenience of the public, retailers may be

1152

authorized to pay winners amounts less than $600 after performing

1153

validation procedures on their premises appropriate to the

1154

lottery game involved.

1155

     (f) Holders of tickets shall have the right to claim prizes

1156

for 180 days after the drawing or the end of the lottery game or

1157

play in which the prize was won; except that with respect to any

1158

game in which the player may determine instantly if he or she has

1159

won or lost, such right exists shall exist for 60 days after the

1160

end of the lottery game. If a valid claim is not made for a prize

1161

within the applicable period, the prize constitutes shall

1162

constitute an unclaimed prize for purposes of subsection (2).

1163

     (g) A No prize may not shall be paid upon a ticket

1164

purchased or sold in violation of this act or to any person who

1165

is prohibited from purchasing a lottery ticket pursuant to this

1166

act. Any such prize constitutes shall constitute an unclaimed

1167

prize for purposes of subsection (2).

1168

     (2)(a)  Eighty percent of all unclaimed prize money shall be

1169

deposited in the Educational Enhancement Trust Fund consistent

1170

with the provisions of s. 24.121(2). Subject to appropriations

1171

provided in the General Appropriations Act, these funds may be

1172

used to match private contributions received under the

1173

postsecondary matching grant programs established in ss. 1011.32,

1174

1011.85, 1011.94, and 1013.79.

1175

     (b)  The remaining 20 percent of unclaimed prize money shall

1176

be added to the pool from which future prizes are to be awarded

1177

or used for special prize promotions.

1178

     (3) The division department shall be discharged of all

1179

liability upon payment of a prize.

1180

     (4)  It is the responsibility of the appropriate state

1181

agency and of the judicial branch to identify to the division

1182

department, in the form and format prescribed by the division

1183

department, persons owing an outstanding debt to any state agency

1184

or owing child support collected through a court, including

1185

spousal support or alimony for the spouse or former spouse of the

1186

obligor if the child support obligation is being enforced by the

1187

Department of Revenue. Prior to the payment of a prize of $600 or

1188

more to any claimant having such an outstanding obligation, the

1189

division department shall transmit the amount of the debt to the

1190

agency claiming the debt and shall authorize payment of the

1191

balance to the prize winner after deduction of the debt. If a

1192

prize winner owes multiple debts subject to offset under this

1193

subsection and the prize is insufficient to cover all such debts,

1194

the amount of the prize shall be transmitted first to the agency

1195

claiming that past due child support is owed. If a balance of

1196

lottery prize remains after payment of past due child support,

1197

the remaining lottery prize amount shall be transmitted to other

1198

agencies claiming debts owed to the state, pro rata, based upon

1199

the ratio of the individual debt to the remaining debt owed to

1200

the state.

1201

     Section 17.  Section 24.1153, Florida Statutes, is amended

1202

to read:

1203

     24.1153  Assignment of prizes payable in installments.--

1204

     (1)  The right of any person to receive payments under a

1205

prize that is paid in installments over time by the division

1206

department may be voluntarily assigned, in whole or in part, if

1207

the assignment is made to a person or entity designated pursuant

1208

to an order of a court of competent jurisdiction located in the

1209

judicial district where the assigning prize winner resides or

1210

where the headquarters of the division department is located. A

1211

court may issue an order approving a voluntary assignment and

1212

directing the division department to make prize payments in whole

1213

or in part to the designated assignee, if the court finds that

1214

all of the following conditions have been met:

1215

     (a)  The assignment is in writing, is executed by the

1216

assignor, and is, by its terms, subject to the laws of this

1217

state.

1218

     (b)  The purchase price being paid for the payments being

1219

assigned represents a present value of the payments being

1220

assigned, discounted at an annual rate that does not exceed the

1221

state's usury limit for loans.

1222

     (c)  The assignor provides a sworn affidavit attesting that

1223

he or she:

1224

     1.  Is of sound mind, is in full command of his or her

1225

faculties, and is not acting under duress;

1226

     2.  Has been advised regarding the assignment by his or her

1227

own independent legal counsel, who is unrelated to and is not

1228

being compensated by the assignee or any of the assignee's

1229

affiliates, and has received independent financial or tax advice

1230

concerning the effects of the assignment from a lawyer or other

1231

professional who is unrelated to and is not being compensated by

1232

the assignee or any of the assignee's affiliates;

1233

     3.  Understands that he or she will not receive the prize

1234

payments or portions thereof for the years assigned;

1235

     4.  Understands and agrees that with regard to the assigned

1236

payments the division department and its officials and employees

1237

will have no further liability or responsibility to make the

1238

assigned payments to him or her;

1239

     5.  Has been provided with a one-page written disclosure

1240

statement setting forth, in bold type of not less than 14 points,

1241

the payments being assigned, by amounts and payment dates; the

1242

purchase price being paid; the rate of discount to present value,

1243

assuming daily compounding and funding on the contract date; and

1244

the amount, if any, of any origination or closing fees that will

1245

be charged to him or her; and

1246

     6.  Was advised in writing, at the time he or she signed the

1247

assignment contract, that he or she had the right to cancel the

1248

contract, without any further obligation, within 3 business days

1249

following the date on which the contract was signed.

1250

     (d)  Written notice of the proposed assignment and any court

1251

hearing concerning the proposed assignment is provided to the

1252

division's department's counsel at least 10 days prior to any

1253

court hearing. The division department is not required to appear

1254

in or be named as a party to any such action seeking judicial

1255

confirmation of an assignment under this section, but may

1256

intervene as of right in any such proceeding.

1257

     (2)  A certified copy of a court order approving a voluntary

1258

assignment must be provided to the division department no later

1259

than 14 days before the date on which the payment is to be made.

1260

     (3)  In accordance with the provisions of s. 24.115(4), a

1261

voluntary assignment may not include or cover payments or

1262

portions of payments that are subject to offset on account of a

1263

defaulted or delinquent child support obligation or on account of

1264

a debt owed to a state agency. Each court order issued under

1265

subsection (1) shall provide that any delinquent child support

1266

obligations of the assigning prize winner and any debts owed to a

1267

state agency by the assigning prize winner, as of the date of the

1268

court order, shall be offset by the division department first

1269

against remaining payments or portions thereof due the prize

1270

winner and then against payments due the assignee.

1271

     (4) The division department, and its respective officials

1272

and employees, shall be discharged of all liability upon payment

1273

of an assigned prize under this section.

1274

     (5) The division department may establish a reasonable fee

1275

to defray any administrative expenses associated with assignments

1276

made under this section, including the cost to the division

1277

department of any processing fee that may be imposed by a private

1278

annuity provider. The fee amount shall reflect the direct and

1279

indirect costs associated with processing such assignments.

1280

     (6)  If at any time the Internal Revenue Service or a court

1281

of competent jurisdiction issues a determination letter, revenue

1282

ruling, other public ruling of the Internal Revenue Service, or

1283

published decision to any state lottery or prize winner of any

1284

state lottery declaring that the voluntary assignment of prizes

1285

will affect the federal income tax treatment of prize winners who

1286

do not assign their prizes, the director secretary of the

1287

division department shall immediately file a copy of that letter,

1288

ruling, or published decision with the Secretary of State and the

1289

Office of the State Courts Administrator. A court may not issue

1290

an order authorizing a voluntary assignment under this section

1291

after the date any such ruling, letter, or published decision is

1292

filed.

1293

     Section 18.  Section 24.116, Florida Statutes, is amended to

1294

read:

1295

     24.116  Unlawful purchase of lottery tickets; penalty.--

1296

     (1) A No person who is less than 18 years of age may not

1297

purchase a lottery ticket; however, this does shall not prohibit

1298

the purchase of a lottery ticket for the purpose of making a gift

1299

to a minor.

1300

     (2) An No officer or employee of the division department or

1301

any relative living in the same household with such officer or

1302

employee may not purchase a lottery ticket.

1303

     (3) An No officer or employee of any vendor under contract

1304

with the division department for a major procurement, relative

1305

living in the same household with such officer or employee, or

1306

immediate supervisor of such officer or employee may not purchase

1307

a lottery ticket if the officer or employee is involved in the

1308

direct provision of goods or services to the division department

1309

or has access to information made confidential by the division

1310

department.

1311

     (4) Any person who violates this section commits is guilty

1312

of a misdemeanor of the first degree, punishable as provided in

1313

s. 775.082 or s. 775.083.

1314

     Section 19.  Section 24.117, Florida Statutes, is amended to

1315

read:

1316

     24.117  Unlawful sale of lottery tickets; penalty.--Any

1317

person who knowingly:

1318

     (1)  Sells a state lottery ticket when not authorized by the

1319

division department or this act to engage in such sale;

1320

     (2)  Sells a state lottery ticket to a minor; or

1321

     (3)  Sells a state lottery ticket at any price other than

1322

that established by the division department;

1323

1324

commits is guilty of a misdemeanor of the first degree,

1325

punishable as provided in s. 775.082 or s. 775.083.

1326

     Section 20.  Subsections (1), (3), and (5) of section

1327

24.118, Florida Statutes, are amended to read:

1328

     24.118  Other prohibited acts; penalties.--

1329

     (1)  UNLAWFUL EXTENSIONS OF CREDIT.--Any retailer who

1330

extends credit or lends money to a person for the purchase of a

1331

lottery ticket commits is guilty of a misdemeanor of the second

1332

degree, punishable as provided in s. 775.082 or s. 775.083. This

1333

subsection does shall not be construed to prohibit the purchase

1334

of a lottery ticket through the use of a credit or charge card or

1335

other instrument issued by a bank, savings association, credit

1336

union, or charge card company or by a retailer pursuant to part

1337

II of chapter 520 if, provided that any such purchase from a

1338

retailer is shall be in addition to the purchase of goods and

1339

services other than lottery tickets having a cost of no less than

1340

$20.

1341

     (3)  COUNTERFEIT OR ALTERED TICKETS.--Any person who:

1342

     (a)  Knowingly presents a counterfeit or altered state

1343

lottery ticket;

1344

     (b)  Knowingly transfers a counterfeit or altered state

1345

lottery ticket to another to present for payment;

1346

     (c)  With intent to defraud, falsely makes, alters, forges,

1347

passes, or counterfeits a state lottery ticket; or

1348

     (d) Files with the division department a claim for payment

1349

based upon facts alleged by the claimant which facts are untrue

1350

and known by the claimant to be untrue when the claim is made;

1351

1352

commits is guilty of a felony of the third degree, punishable as

1353

provided in s. 775.082, s. 775.083, or s. 775.084.

1354

     (5)  UNLAWFUL REPRESENTATION.--

1355

     (a)  Any person who uses point-of-sale materials issued by

1356

the division department or otherwise holds himself or herself out

1357

as a retailer without being authorized by the division department

1358

to act as a retailer commits is guilty of a misdemeanor of the

1359

first degree, punishable as provided in s. 775.082 or s. 775.083.

1360

     (b) Any person who without being authorized by the division

1361

department in writing uses the term "Florida Lottery," "State

1362

Lottery," "Florida State Lottery," or any similar term in the

1363

title or name of any charitable or commercial enterprise,

1364

product, or service commits is guilty of a misdemeanor of the

1365

first degree, punishable as provided in s. 775.082 or s. 775.083.

1366

     Section 21.  Section 24.119, Florida Statutes, is amended to

1367

read:

1368

     24.119  Use of word "lottery" in corporate name.--The

1369

corporate name of a corporation may shall not contain the word

1370

"lottery" unless the Division Department of the Lottery approves

1371

such name in writing.

1372

     Section 22.  Section 24.120, Florida Statutes, is amended to

1373

read:

1374

     24.120  Financial matters; Operating Trust Fund; interagency

1375

cooperation.--

1376

     (1) There is hereby created in the State Treasury an

1377

Operating Trust Fund to be administered in accordance with

1378

chapters 215 and 216 by the division department. All money

1379

received by the division department which remains after payment

1380

of prizes and initial compensation paid to retailers shall be

1381

deposited into the Operating Trust Fund. All moneys in the trust

1382

fund are appropriated to the division department for the purposes

1383

specified in this act.

1384

     (2)  Moneys available for the payment of prizes on a

1385

deferred basis shall be invested by the State Board of

1386

Administration in accordance with a trust agreement approved by

1387

the division director secretary and entered into between the

1388

division department and the State Board of Administration in

1389

accordance with ss. 215.44-215.53. The investments authorized by

1390

this subsection shall be done in a manner designed to preserve

1391

capital and to ensure the integrity of the lottery disbursement

1392

system by eliminating the risk of payment of funds when due and

1393

to produce equal annual sums of money over the required term of

1394

the investments.

1395

     (3)  Any action required by law to be taken by the Chief

1396

Financial Officer shall be taken within 2 business days after the

1397

division's department's request therefor. If the request for

1398

action is not approved or rejected within that time period, the

1399

request shall be deemed to be approved. The division department

1400

shall reimburse the Chief Financial Officer for any additional

1401

costs involved in providing the level of service required by this

1402

subsection.

1403

     (4) The division department shall cooperate with the Chief

1404

Financial Officer, the Auditor General, and the Office of Program

1405

Policy Analysis and Government Accountability by giving employees

1406

designated by any of them access to facilities of the division

1407

department for the purpose of efficient compliance with their

1408

respective responsibilities.

1409

     (5) With respect to any reimbursement that the division

1410

department is required to pay to any state agency, the division

1411

department may enter into an agreement with a state agency under

1412

which the division department shall pay to the state agency an

1413

amount reasonably anticipated to cover the reimbursable expenses

1414

in advance of the expenses being incurred.

1415

     (6)  The Department of Management Services may authorize a

1416

sales incentive program for employees of the division department

1417

for the purpose of increasing the sales volume and distribution

1418

of lottery tickets. Payments pursuant to the program are shall

1419

not be construed to be lump-sum salary bonuses.

1420

     Section 23.  Subsections (1), (2), and (3) and paragraph (d)

1421

of subsection (5) of section 24.121, Florida Statutes, are

1422

amended to read:

1423

     24.121  Allocation of revenues and expenditure of funds for

1424

public education.--

1425

     (1)  Variable percentages of the gross revenue from the sale

1426

of online and instant lottery tickets shall be returned to the

1427

public in the form of prizes paid by the division department or

1428

retailers as authorized by this act. The variable percentages of

1429

gross revenue from the sale of online and instant lottery tickets

1430

returned to the public in the form of prizes shall be established

1431

by the division department in a manner designed to maximize the

1432

amount of funds deposited under subsection (2).

1433

     (2)  Each fiscal year, variable percentages of the gross

1434

revenue from the sale of online and instant lottery tickets as

1435

determined by the division department consistent with subsection

1436

(1), and other earned revenue, excluding application processing

1437

fees, shall be deposited in the Educational Enhancement Trust

1438

Fund, which is hereby created in the State Treasury to be

1439

administered by the Department of Education. The Division

1440

Department of the Lottery shall transfer moneys to the

1441

Educational Enhancement Trust Fund at least once each quarter.

1442

Funds in the Educational Enhancement Trust Fund shall be used to

1443

the benefit of public education in accordance with the provisions

1444

of this act. Notwithstanding any other provision of law, lottery

1445

revenues transferred to the Educational Enhancement Trust Fund

1446

shall be reserved as needed and used to meet the requirements of

1447

the documents authorizing the bonds issued by the state pursuant

1448

to s. 1013.68, s. 1013.70, or s. 1013.737 or distributed to

1449

school districts for the Classrooms First Program as provided in

1450

s. 1013.68. Such lottery revenues are hereby pledged to the

1451

payment of debt service on bonds issued by the state pursuant to

1452

s. 1013.68, s. 1013.70, or s. 1013.737. Debt service payable on

1453

bonds issued by the state pursuant to s. 1013.68, s. 1013.70, or

1454

s. 1013.737 shall be payable from, and is secured by a first lien

1455

on, the first lottery revenues transferred to the Educational

1456

Enhancement Trust Fund in each fiscal year. Amounts distributable

1457

to school districts that request the issuance of bonds pursuant

1458

to s. 1013.68(3) are hereby pledged to such bonds pursuant to s.

1459

11(d), Art. VII of the State Constitution.

1460

     (3)  The funds remaining in the Operating Trust Fund after

1461

transfers to the Educational Enhancement Trust Fund shall be used

1462

for the payment of administrative expenses of the division

1463

department. These expenses shall include all costs incurred in

1464

the operation and administration of the lottery and all costs

1465

resulting from any contracts entered into for the purchase or

1466

lease of goods or services required by the lottery, including,

1467

but not limited to:

1468

     (a)  The compensation paid to retailers;

1469

     (b)  The costs of supplies, materials, tickets, independent

1470

audit services, independent studies, data transmission,

1471

advertising, promotion, incentives, public relations,

1472

communications, security, bonding for retailers, printing,

1473

distribution of tickets, and reimbursing other governmental

1474

entities for services provided to the lottery; and

1475

     (c)  The costs of any other goods and services necessary for

1476

effectuating the purposes of this act.

1477

     (5)

1478

     (d) No Funds may not shall be released for any purpose from

1479

the Educational Enhancement Trust Fund to any school district in

1480

which one or more schools do not have an approved school

1481

improvement plan pursuant to s. 1001.42(16) or do not comply with

1482

school advisory council membership composition requirements

1483

pursuant to s. 1001.452(1). The Commissioner of Education shall

1484

withhold disbursements from the trust fund to any school district

1485

that fails to adopt the performance-based salary schedule

1486

required by s. 1012.22(1).

1487

     Section 24.  Section 24.1215, Florida Statutes, is amended

1488

to read:

1489

     24.1215  Duty to inform public of lottery's significance to

1490

education.--The Division Department of the Lottery shall inform

1491

the public about the significance of lottery funding to the

1492

state's overall system of public education.

1493

     Section 25.  Section 24.122, Florida Statutes, is amended to

1494

read:

1495

     24.122  Exemption from taxation; state preemption;

1496

inapplicability of other laws.--

1497

     (1) This act does shall not be construed to authorize any

1498

lottery except the lottery operated by the division department

1499

pursuant to this act.

1500

     (2) A No state or local tax may not shall be imposed upon

1501

any prize paid or payable under this act or upon the sale of any

1502

lottery ticket pursuant to this act.

1503

     (3)  All matters relating to the operation of the state

1504

lottery are preempted to the state, and a no county,

1505

municipality, or other political subdivision of the state may not

1506

shall enact any ordinance relating to the operation of the

1507

lottery authorized by this act. However, this subsection does

1508

shall not prohibit a political subdivision of the state from

1509

requiring a retailer to obtain an occupational license for any

1510

business unrelated to the sale of lottery tickets.

1511

     (4)  Any state or local law providing any penalty,

1512

disability, restriction, or prohibition for the possession,

1513

manufacture, transportation, distribution, advertising, or sale

1514

of any lottery ticket, including chapter 849, does shall not

1515

apply to the tickets of the state lottery operated pursuant to

1516

this act; and nor shall any such law does not apply to the

1517

possession of a ticket issued by any other government-operated

1518

lottery. In addition, activities of the division department under

1519

this act are exempt from the provisions of:

1520

     (a)  Chapter 616, relating to public fairs and expositions.

1521

     (b)  Chapter 946, relating to correctional work programs.

1522

     (c)  Chapter 282, relating to communications and data

1523

processing.

1524

     (d)  Section 110.131, relating to other personal services.

1525

     Section 26.  Section 24.123, Florida Statutes, is amended to

1526

read:

1527

     24.123  Annual audit of financial records and reports.--

1528

     (1)  The Legislative Auditing Committee shall contract with

1529

a certified public accountant licensed pursuant to chapter 473

1530

for an annual financial audit of the division department. The

1531

certified public accountant may not shall have any no financial

1532

interest in any vendor with whom the division department is under

1533

contract. The certified public accountant shall present an audit

1534

report no later than 7 months after the end of the fiscal year

1535

and shall make recommendations to enhance the earning capability

1536

of the state lottery and to improve the efficiency of division

1537

department operations. The certified public accountant shall also

1538

perform a study and evaluation of internal accounting controls

1539

and shall express an opinion on those controls in effect during

1540

the audit period. The cost of the annual financial audit shall be

1541

paid by the division department.

1542

     (2)  The Auditor General may at any time conduct an audit of

1543

any phase of the operations of the state lottery and shall

1544

receive a copy of the yearly independent financial audit and any

1545

security report prepared pursuant to s. 24.108.

1546

     (3)  A copy of any audit performed pursuant to this section

1547

shall be submitted to the commission, the division director

1548

secretary, the Governor, the President of the Senate, the Speaker

1549

of the House of Representatives, and members of the Legislative

1550

Auditing Committee.

1551

     Section 27.  Section 24.124, Florida Statutes, is amended to

1552

read:

1553

     24.124 Responsibility for ticket accuracy; division

1554

department, retailer, and vendor liability.--

1555

     (1)  Purchasers of online games tickets shall be responsible

1556

for verifying the accuracy of their tickets, including the number

1557

or numbers printed on the tickets. In the event of an error, the

1558

ticket may be canceled and a replacement ticket issued pursuant

1559

to rules adopted promulgated by the Division Department of the

1560

Lottery.

1561

     (2)  Other than the issuance of a replacement ticket, there

1562

is shall be no right or cause of action and no liability on the

1563

part of the division department, retailer, vendor, or any other

1564

person associated with selling an online games ticket, with

1565

respect to errors or inaccuracies contained in the ticket,

1566

including errors in the number or numbers printed on the ticket.

1567

     Section 28.  Paragraph (a) of subsection (9) of section

1568

112.313, Florida Statutes, is amended to read:

1569

     112.313  Standards of conduct for public officers, employees

1570

of agencies, and local government attorneys.--

1571

     (9)  POSTEMPLOYMENT RESTRICTIONS; STANDARDS OF CONDUCT FOR

1572

LEGISLATORS AND LEGISLATIVE EMPLOYEES.--

1573

     (a)1.  It is the intent of the Legislature to implement by

1574

statute the provisions of s. 8(e), Art. II of the State

1575

Constitution relating to legislators, statewide elected officers,

1576

appointed state officers, and designated public employees.

1577

     2.  As used in this paragraph:

1578

     a.  "Employee" means:

1579

     (I)  Any person employed in the executive or legislative

1580

branch of government holding a position in the Senior Management

1581

Service as defined in s. 110.402 or any person holding a position

1582

in the Selected Exempt Service as defined in s. 110.602 or any

1583

person having authority over policy or procurement employed by

1584

the Division Department of the Lottery within the Department of

1585

Gaming Control.

1586

     (II)  The Auditor General, the director of the Office of

1587

Program Policy Analysis and Government Accountability, the

1588

Sergeant at Arms and Secretary of the Senate, and the Sergeant at

1589

Arms and Clerk of the House of Representatives.

1590

     (III)  The executive director of the Legislative Committee

1591

on Intergovernmental Relations and the executive director and

1592

deputy executive director of the Commission on Ethics.

1593

     (IV)  An executive director, staff director, or deputy staff

1594

director of each joint committee, standing committee, or select

1595

committee of the Legislature; an executive director, staff

1596

director, executive assistant, analyst, or attorney of the Office

1597

of the President of the Senate, the Office of the Speaker of the

1598

House of Representatives, the Senate Majority Party Office,

1599

Senate Minority Party Office, House Majority Party Office, or

1600

House Minority Party Office; or any person, hired on a

1601

contractual basis, having the power normally conferred upon such

1602

persons, by whatever title.

1603

     (V)  The Chancellor and Vice Chancellors of the State

1604

University System; the general counsel to the Board of Governors

1605

of the State University System; and the president, provost, vice

1606

presidents, and deans of each state university.

1607

     (VI)  Any person, including an other-personal-services

1608

employee, having the power normally conferred upon the positions

1609

referenced in this sub-subparagraph.

1610

     b.  "Appointed state officer" means any member of an

1611

appointive board, commission, committee, council, or authority of

1612

the executive or legislative branch of state government whose

1613

powers, jurisdiction, and authority are not solely advisory and

1614

include the final determination or adjudication of any personal

1615

or property rights, duties, or obligations, other than those

1616

relative to its internal operations.

1617

     c.  "State agency" means an entity of the legislative,

1618

executive, or judicial branch of state government over which the

1619

Legislature exercises plenary budgetary and statutory control.

1620

     3. A No member of the Legislature, appointed state officer,

1621

or statewide elected officer may not shall personally represent

1622

another person or entity for compensation before the government

1623

body or agency of which the individual was an officer or member

1624

for a period of 2 years following vacation of office. A No member

1625

of the Legislature may not shall personally represent another

1626

person or entity for compensation during his or her term of

1627

office before any state agency other than judicial tribunals or

1628

in settlement negotiations after the filing of a lawsuit.

1629

     4.  An agency employee, including an agency employee who was

1630

employed on July 1, 2001, in a Career Service System position

1631

that was transferred to the Selected Exempt Service System under

1632

chapter 2001-43, Laws of Florida, may not personally represent

1633

another person or entity for compensation before the agency with

1634

which he or she was employed for a period of 2 years following

1635

vacation of position, unless employed by another agency of state

1636

government.

1637

     5.  Any person violating this paragraph shall be subject to

1638

the penalties provided in s. 112.317 and a civil penalty of an

1639

amount equal to the compensation which the person receives for

1640

the prohibited conduct.

1641

     6.  This paragraph is not applicable to:

1642

     a.  A person employed by the Legislature or other agency

1643

prior to July 1, 1989;

1644

     b.  A person who was employed by the Legislature or other

1645

agency on July 1, 1989, whether or not the person was a defined

1646

employee on July 1, 1989;

1647

     c.  A person who was a defined employee of the State

1648

University System or the Public Service Commission who held such

1649

employment on December 31, 1994;

1650

     d.  A person who has reached normal retirement age as

1651

defined in s. 121.021(29), and who has retired under the

1652

provisions of chapter 121 by July 1, 1991; or

1653

     e.  Any appointed state officer whose term of office began

1654

before January 1, 1995, unless reappointed to that office on or

1655

after January 1, 1995.

1656

     Section 29.  Subsection (4) of section 120.80, Florida

1657

Statutes, is amended, and subsection (18) is added to that

1658

section, to read:

1659

     120.80  Exceptions and special requirements; agencies.--

1660

     (4)  DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION.--

1661

     (a) Business regulation.--The Division of Pari-mutuel

1662

Wagering is exempt from the hearing and notice requirements of

1663

ss. 120.569 and 120.57(1)(a), but only for stewards, judges, and

1664

boards of judges when the hearing is to be held for the purpose

1665

of the imposition of fines or suspensions as provided by rules of

1666

the Division of Pari-mutuel Wagering, but not for revocations,

1667

and only upon violations of subparagraphs 1.-6. The Division of

1668

Pari-mutuel Wagering shall adopt rules establishing alternative

1669

procedures, including a hearing upon reasonable notice, for the

1670

following violations:

1671

     1. Horse riding, harness riding, greyhound interference,

1672

and jai alai game actions in violation of chapter 550.

1673

     2. Application and usage of drugs and medication to horses,

1674

greyhounds, and jai alai players in violation of chapter 550.

1675

     3. Maintaining or possessing any device which could be used

1676

for the injection or other infusion of a prohibited drug to

1677

horses, greyhounds, and jai alai players in violation of chapter

1678

550.

1679

     4. Suspensions under reciprocity agreements between the

1680

Division of Pari-mutuel Wagering and regulatory agencies of other

1681

states.

1682

     5. Assault or other crimes of violence on premises licensed

1683

for pari-mutuel wagering.

1684

     6. Prearranging the outcome of any race or game.

1685

     (b) Professional regulation.--Notwithstanding s.

1686

120.57(1)(a), formal hearings may not be conducted by the

1687

Secretary of Business and Professional Regulation or a board or

1688

member of a board within the Department of Business and

1689

Professional Regulation for matters relating to the regulation of

1690

professions, as defined by chapter 455.

1691

     (18) DEPARTMENT OF GAMING CONTROL.--The Bureau of Pari-

1692

mutuel Wagering within the Division of Gambling Oversight is

1693

exempt from the hearing and notice requirements of ss. 120.569

1694

and 120.57(1)(a), but only for stewards, judges, and boards of

1695

judges when the hearing is to be held for the purpose of the

1696

imposition of fines or suspension as provided by rules of the

1697

Bureau of Pari-mutuel Wagering, but not for revocations, and only

1698

upon violations of paragraphs (a)-(f). The Bureau of Pari-mutuel

1699

Wagering shall adopt rules establishing alternative procedures,

1700

including a hearing upon reasonable notice, for the following

1701

violations:

1702

     (a) Horse riding, harness riding, greyhound interference,

1703

and jai alai game actions in violation of chapter 550.

1704

     (b) Application and usage of drugs and medication to

1705

horses, greyhounds, and jai alai players in violation of chapter

1706

550.

1707

     (c) Maintaining or possessing any device that could be used

1708

for the injection or other infusion of a prohibited drug to

1709

horses, greyhounds, and jai alai players in violation of chapter

1710

550.

1711

     (d) Suspensions under reciprocity agreements between the

1712

Bureau of Pari-mutuel Wagering and regulatory agencies of other

1713

states.

1714

     (e) Assault or other crimes of violence on premises

1715

licensed for pari-mutuel wagering.

1716

     (f) Prearranging the outcome of any race or game.

1717

     Section 30.  Paragraph (e) of subsection (8) of section

1718

213.053, Florida Statutes, is amended to read:

1719

     213.053  Confidentiality and information sharing.--

1720

     (8)  Notwithstanding any other provision of this section,

1721

the department may provide:

1722

     (e)  Names, addresses, taxpayer identification numbers, and

1723

outstanding tax liabilities to the Division Department of the

1724

Lottery of the Department of Gaming Control and the Office of

1725

Financial Regulation of the Financial Services Commission in the

1726

conduct of their official duties.

1727

1728

Disclosure of information under this subsection shall be pursuant

1729

to a written agreement between the executive director and the

1730

agency. Such agencies, governmental or nongovernmental, shall be

1731

bound by the same requirements of confidentiality as the

1732

Department of Revenue. Breach of confidentiality is a misdemeanor

1733

of the first degree, punishable as provided by s. 775.082 or s.

1734

775.083.

1735

     Section 31.  Paragraph (d) of subsection (4) of section

1736

215.20, Florida Statutes, is amended, and paragraph (y) is added

1737

to that subsection, to read:

1738

     215.20  Certain income and certain trust funds to contribute

1739

to the General Revenue Fund.--

1740

     (4)  The income of a revenue nature deposited in the

1741

following described trust funds, by whatever name designated, is

1742

that from which the appropriations authorized by subsection (3)

1743

shall be made:

1744

     (d)  Within the Department of Business and Professional

1745

Regulation:

1746

     1.  The Administrative Trust Fund.

1747

     2.  The Alcoholic Beverage and Tobacco Trust Fund.

1748

     3.  The Cigarette Tax Collection Trust Fund.

1749

     4.  The Division of Florida Land Sales, Condominiums, and

1750

Mobile Homes Trust Fund.

1751

     5.  The Hotel and Restaurant Trust Fund, with the exception

1752

of those fees collected for the purpose of funding of the

1753

hospitality education program as stated in s. 509.302.

1754

     6.  The Professional Regulation Trust Fund.

1755

     7. The trust funds administered by the Division of Pari-

1756

mutuel Wagering.

1757

     (y) Within the Department of Gaming Control, the trust

1758

funds administered by the Bureau of Pari-mutuel Wagering within

1759

the Division of Gambling Oversight.

1760

1761

The enumeration of the foregoing moneys or trust funds shall not

1762

prohibit the applicability thereto of s. 215.24 should the

1763

Governor determine that for the reasons mentioned in s. 215.24

1764

the money or trust funds should be exempt herefrom, as it is the

1765

purpose of this law to exempt income from its force and effect

1766

when, by the operation of this law, federal matching funds or

1767

contributions or private grants to any trust fund would be lost

1768

to the state.

1769

     Section 32.  Paragraph (b) of subsection (1) of section

1770

215.22, Florida Statutes, is amended to read:

1771

     215.22  Certain income and certain trust funds exempt.--

1772

     (1)  The following income of a revenue nature or the

1773

following trust funds shall be exempt from the appropriation

1774

required by s. 215.20(1):

1775

     (b) Trust funds administered by the Division Department of

1776

the Lottery within the Department of Gaming Control.

1777

     Section 33.  Subsection (16) of section 215.422, Florida

1778

Statutes, is amended to read:

1779

     215.422  Payments, warrants, and invoices; processing time

1780

limits; dispute resolution; agency or judicial branch

1781

compliance.--

1782

     (16)  Notwithstanding the provisions of s. 24.120(3),

1783

applicable to warrants issued for payment of invoices submitted

1784

by the Division Department of the Lottery within the Department

1785

of Gaming Control, the Chief Financial Officer may, by written

1786

agreement with the Division Department of the Lottery, establish

1787

a shorter time requirement than the 10 days provided in

1788

subsection (2) for warrants issued for payment. Pursuant to such

1789

written agreement, the Division Department of the Lottery within

1790

the Department of Gaming Control shall reimburse the Chief

1791

Financial Officer for costs associated with processing invoices

1792

under the agreement.

1793

     Section 34.  Subsection (10) of section 287.045, Florida

1794

Statutes, is amended to read:

1795

     287.045  Procurement of products and materials with recycled

1796

content.--

1797

     (10)  An agency, or a vendor contracting with such agency

1798

with respect to work performed under contract, must procure

1799

products or materials with recycled content if the department

1800

determines that those products or materials are available

1801

pursuant to subsection (5). Notwithstanding any other provision

1802

to the contrary, for the purpose of this section, the term

1803

"agency" means any of the various state officers, departments,

1804

boards, commissions, divisions, bureaus, and councils and any

1805

other unit of organization, however designated, of the executive

1806

branch including the Department of Gaming Control the Lottery,

1807

the legislative branch, the judicial branch, the university and

1808

college boards of trustees, and the state universities and

1809

colleges. A decision not to procure such items must be based on

1810

the department's determination that such procurement is not

1811

reasonably available within an acceptable period of time or fails

1812

to meet the performance standards set forth in the applicable

1813

specifications or fails to meet the performance standards of the

1814

agency.

1815

     Section 35.  Subsections (6) and (7) of section 455.116,

1816

Florida Statutes, are amended to read:

1817

     455.116  Regulation trust funds.--The following trust funds

1818

shall be placed in the department:

1819

     (6) Pari-mutuel Wagering Trust Fund.

1820

     (6)(7) Professional Regulation Trust Fund.

1821

     Section 36.  Subsections (6) and (7) of section 550.002,

1822

Florida Statutes, are amended, and subsections (40) and (41) are

1823

added to that section, to read:

1824

     550.002  Definitions.--As used in this chapter, the term:

1825

     (6) "Department" means the Department of Gaming Control

1826

Business and Professional Regulation.

1827

     (7) "Division" means the Division of Gambling Oversight

1828

Pari-mutuel Wagering within the Department of Gaming Control

1829

Business and Professional Regulation.

1830

     (40) "Bureau" means the Bureau of Pari-mutuel Wagering

1831

within the Division of Gambling Oversight of the Department of

1832

Gaming Control.

1833

     (41) "Commission" means the Gaming Commission.

1834

     Section 37.  Section 550.0115, Florida Statutes, is amended

1835

to read:

1836

     550.0115  Permitholder license.--After a permit has been

1837

issued by the bureau division, and after the permit has been

1838

approved by election, the bureau division shall issue to the

1839

permitholder an annual license to conduct pari-mutuel operations

1840

at the location specified in the permit pursuant to the

1841

provisions of this chapter.

1842

     Section 38.  Section 550.01215, Florida Statutes, is amended

1843

to read:

1844

     550.01215  License application; periods of operation; bond,

1845

conversion of permit.--

1846

     (1)  Each permitholder shall annually, during the period

1847

between December 15 and January 4, file in writing with the

1848

bureau division its application for a license to conduct

1849

performances during the next state fiscal year. Each application

1850

shall specify the number, dates, and starting times of all

1851

performances which the permitholder intends to conduct. It shall

1852

also specify which performances will be conducted as charity or

1853

scholarship performances. In addition, each application for a

1854

license shall include, for each permitholder which elects to

1855

operate a cardroom, the dates and periods of operation the

1856

permitholder intends to operate the cardroom or, for each

1857

thoroughbred permitholder which elects to receive or rebroadcast

1858

out-of-state races after 7 p.m., the dates for all performances

1859

which the permitholder intends to conduct. Permitholders shall be

1860

entitled to amend their applications through February 28.

1861

     (2)  After the first license has been issued to a

1862

permitholder, all subsequent annual applications for a license

1863

shall be accompanied by proof, in such form as the bureau

1864

division may by rule require, that the permitholder continues to

1865

possess the qualifications prescribed by this chapter, and that

1866

the permit has not been disapproved at a later election.

1867

     (3)  Except as provided in s. 550.5251 for thoroughbred

1868

racing, the bureau division shall issue each license no later

1869

than March 15. Each permitholder shall operate all performances

1870

at the date and time specified on its license. The bureau may

1871

division shall have the authority to approve minor changes in

1872

racing dates after a license has been issued. The bureau division

1873

may approve changes in racing dates after a license has been

1874

issued when there is no objection from any operating permitholder

1875

located within 50 miles of the permitholder requesting the

1876

changes in operating dates. In the event of an objection, the

1877

bureau division shall approve or disapprove the change in

1878

operating dates based upon the impact on operating permitholders

1879

located within 50 miles of the permitholder requesting the change

1880

in operating dates. In making the determination to change racing

1881

dates, the bureau division shall take into consideration the

1882

impact of such changes on state revenues.

1883

     (4) If In the event that a permitholder fails to operate

1884

all performances specified on its license at the date and time

1885

specified, the bureau division shall hold a hearing to determine

1886

whether to fine or suspend the permitholder's license, unless

1887

such failure was the direct result of fire, strike, war, or other

1888

disaster or event beyond the ability of the permitholder to

1889

control. Financial hardship to the permitholder does shall not,

1890

in and of itself, constitute just cause for failure to operate

1891

all performances on the dates and at the times specified.

1892

     (5) If In the event that performances licensed to be

1893

operated by a permitholder are vacated, abandoned, or will not be

1894

used for any reason, any permitholder is shall be entitled,

1895

pursuant to rules adopted by the bureau division, to apply to

1896

conduct performances on the dates for which the performances have

1897

been abandoned. The bureau division shall issue an amended

1898

license for all such replacement performances that which have

1899

been requested in compliance with the provisions of this chapter

1900

and bureau division rules.

1901

     (6) Any permit that which was converted from a jai alai

1902

permit to a greyhound permit may be converted to a jai alai

1903

permit at any time if the permitholder never conducted greyhound

1904

racing or if the permitholder has not conducted greyhound racing

1905

for a period of 12 consecutive months.

1906

     Section 39.  Section 550.0235, Florida Statutes, is amended

1907

to read:

1908

     550.0235  Limitation of civil liability.--No permittee

1909

conducting a racing meet pursuant to the provisions of this

1910

chapter; no bureau chief, division director, or employee of the

1911

bureau division; and no steward, judge, or other person appointed

1912

to act pursuant to this chapter shall be held liable to any

1913

person, partnership, association, corporation, or other business

1914

entity for any cause whatsoever arising out of, or from, the

1915

performance by such permittee, bureau chief, director, employee,

1916

steward, judge, or other person of her or his duties and the

1917

exercise of her or his discretion with respect to the

1918

implementation and enforcement of the statutes and rules

1919

governing the conduct of pari-mutuel wagering, so long as she or

1920

he acted in good faith. This section does shall not limit

1921

liability in any situation in which the negligent maintenance of

1922

the premises or the negligent conduct of a race contributed to an

1923

accident; and does not nor shall it limit any contractual

1924

liability.

1925

     Section 40.  Section 550.0251, Florida Statutes, is amended

1926

to read:

1927

     550.0251 The powers and duties of the Bureau Division of

1928

Pari-mutuel Wagering within the Division of Gambling Oversight of

1929

the Department of Gaming Control Business and Professional

1930

Regulation.--The bureau division shall administer this chapter

1931

and regulate the pari-mutuel industry under this chapter and the

1932

rules adopted pursuant thereto, and:

1933

     (1) The bureau division shall make an annual report to the

1934

Governor showing its own actions, receipts derived under the

1935

provisions of this chapter, the practical effects of the

1936

application of this chapter, and any suggestions it may approve

1937

for the more effectual accomplishments of the purposes of this

1938

chapter.

1939

     (2) The bureau division shall require an oath on

1940

application documents as required by rule, which oath must state

1941

that the information contained in the document is true and

1942

complete.

1943

     (3) The bureau division shall adopt reasonable rules for

1944

the control, supervision, and direction of all applicants,

1945

permittees, and licensees and for the holding, conducting, and

1946

operating of all racetracks, race meets, and races held in this

1947

state. Such rules must be uniform in their application and

1948

effect, and the duty of exercising this control and power is made

1949

mandatory upon the bureau division.

1950

     (4) The bureau division may take testimony concerning any

1951

matter within its jurisdiction and issue summons and subpoenas

1952

for any witness and subpoenas duces tecum in connection with any

1953

matter within the jurisdiction of the bureau division under its

1954

seal and signed by the director.

1955

     (5) The bureau division may adopt rules establishing

1956

procedures for testing occupational licenseholders officiating at

1957

or participating in any race or game at any pari-mutuel facility

1958

under the jurisdiction of the bureau division for a controlled

1959

substance or alcohol and may prescribe procedural matters not in

1960

conflict with s. 120.80(4)(a).

1961

     (6)  In addition to the power to exclude certain persons

1962

from any pari-mutuel facility in this state, the bureau division

1963

may exclude any person from any and all pari-mutuel facilities in

1964

this state for conduct that would constitute, if the person were

1965

a licensee, a violation of this chapter or the rules of the

1966

bureau division. The bureau division may exclude from any pari-

1967

mutuel facility within this state any person who has been ejected

1968

from a pari-mutuel facility in this state or who has been

1969

excluded from any pari-mutuel facility in another state by the

1970

governmental department, agency, commission, or authority

1971

exercising regulatory jurisdiction over pari-mutuel facilities in

1972

such other state. The bureau division may authorize any person

1973

who has been ejected or excluded from pari-mutuel facilities in

1974

this state or another state to attend the pari-mutuel facilities

1975

in this state upon a finding that the attendance of such person

1976

at pari-mutuel facilities would not be adverse to the public

1977

interest or to the integrity of the sport or industry; however,

1978

this subsection does shall not be construed to abrogate the

1979

common-law right of a pari-mutuel permitholder to exclude

1980

absolutely a patron in this state.

1981

     (7) The bureau division may oversee the making of, and

1982

distribution from, all pari-mutuel pools.

1983

     (8) The bureau department may collect taxes and require

1984

compliance with reporting requirements for financial information

1985

as authorized by this chapter. In addition, the commission

1986

secretary of the department may require permitholders conducting

1987

pari-mutuel operations within the state to remit taxes, including

1988

fees, by electronic funds transfer if the taxes and fees amounted

1989

to $50,000 or more in the prior reporting year.

1990

     (9) The bureau division may conduct investigations in

1991

enforcing this chapter, except that all information obtained

1992

pursuant to an investigation by the bureau division for an

1993

alleged violation of this chapter or rules of the bureau division

1994

is exempt from s. 119.07(1) and from s. 24(a), Art. I of the

1995

State Constitution until an administrative complaint is issued or

1996

the investigation is closed or ceases to be active. This

1997

subsection does not prohibit the bureau division from providing

1998

such information to any law enforcement agency or to any other

1999

regulatory agency. For the purposes of this subsection, an

2000

investigation is considered to be active while it is being

2001

conducted with reasonable dispatch and with a reasonable, good

2002

faith belief that it could lead to an administrative, civil, or

2003

criminal action by the division or another administrative or law

2004

enforcement agency. Except for active criminal intelligence or

2005

criminal investigative information, as defined in s. 119.011, and

2006

any other information that, if disclosed, would jeopardize the

2007

safety of an individual, all information, records, and

2008

transcriptions become public when the investigation is closed or

2009

ceases to be active.

2010

     (10) The bureau division may impose an administrative fine

2011

for a violation under this chapter of not more than $1,000 for

2012

each count or separate offense, except as otherwise provided in

2013

this chapter, and may suspend or revoke a permit, a pari-mutuel

2014

license, or an occupational license for a violation under this

2015

chapter. All fines imposed and collected under this subsection

2016

must be deposited with the Chief Financial Officer to the credit

2017

of the General Revenue Fund.

2018

     (11) The bureau division shall supervise and regulate the

2019

welfare of racing animals at pari-mutuel facilities.

2020

     (12) The Bureau of Cardrooms within the Division of

2021

Gambling Oversight division shall have full authority and power

2022

to make, adopt, amend, or repeal rules relating to cardroom

2023

operations, to enforce and to carry out the provisions of s.

2024

849.086, and to regulate the authorized cardroom activities in

2025

the state.

2026

     (13) The bureau may division shall have the authority to

2027

suspend a permitholder's permit or license, if such permitholder

2028

is operating a cardroom facility and such permitholder's cardroom

2029

license has been suspended or revoked pursuant to s. 849.086.

2030

     Section 41.  Subsections (1), (2), (4), (6), and (8) of

2031

section 550.0351, Florida Statutes, are amended to read:

2032

     550.0351  Charity racing days.--

2033

     (1) The bureau division shall, upon the request of a

2034

permitholder, authorize each horseracing permitholder, dogracing

2035

permitholder, and jai alai permitholder up to five charity or

2036

scholarship days in addition to the regular racing days

2037

authorized by law.

2038

     (2)  The proceeds of charity performances shall be paid to

2039

qualified beneficiaries selected by the permitholders from an

2040

authorized list of charities on file with the bureau division.

2041

Eligible charities include any charity that provides evidence of

2042

compliance with the provisions of chapter 496 and evidence of

2043

possession of a valid exemption from federal taxation issued by

2044

the Internal Revenue Service. In addition, the authorized list

2045

must include the Racing Scholarship Trust Fund, the Historical

2046

Resources Operating Trust Fund, major state and private

2047

institutions of higher learning, and Florida community colleges.

2048

     (4)  The total of all profits derived from the conduct of a

2049

charity day performance must include all revenues derived from

2050

the conduct of that racing performance, including all state taxes

2051

that would otherwise be due to the state, except that the daily

2052

license fee as provided in s. 550.0951(1) and the breaks for the

2053

promotional trust funds as provided in s. 550.2625(3), (4), (5),

2054

(7), and (8) shall be paid to the bureau division. All other

2055

revenues from the charity racing performance, including the

2056

commissions, breaks, and admissions and the revenues from

2057

parking, programs, and concessions, shall be included in the

2058

total of all profits.

2059

     (6)(a) The bureau division shall authorize one additional

2060

scholarship day for horseracing in addition to the regular racing

2061

days authorized by law and any additional days authorized by this

2062

section, to be conducted at all horse racetracks located in

2063

Hillsborough County. The permitholder shall conduct a full

2064

schedule of racing on the scholarship day.

2065

     (b)  The funds derived from the operation of the additional

2066

scholarship day shall be allocated as provided in this section

2067

and paid to Pasco-Hernando Community College.

2068

     (c)  When a charity or scholarship performance is conducted

2069

as a matinee performance, the bureau division may authorize the

2070

permitholder to conduct the evening performances of that

2071

operation day as a regular performance in addition to the regular

2072

operating days authorized by law.

2073

     (8)  In addition to the eligible charities that meet the

2074

criteria set forth in this section, a jai alai permitholder is

2075

authorized to conduct two additional charity performances each

2076

fiscal year for a fund to benefit retired jai alai players. This

2077

performance shall be known as the "Retired Jai Alai Players

2078

Charity Day." The administration of this fund shall be determined

2079

by rule by the bureau division.

2080

     Section 42.  Section 550.054, Florida Statutes, is amended

2081

to read:

2082

     550.054  Application for permit to conduct pari-mutuel

2083

wagering.--

2084

     (1)  Any person who possesses the qualifications prescribed

2085

in this chapter may apply to the bureau division for a permit to

2086

conduct pari-mutuel operations under this chapter. Applications

2087

for a pari-mutuel permit are exempt from the 90-day licensing

2088

requirement of s. 120.60. Within 120 days after receipt of a

2089

complete application, the bureau division shall grant or deny the

2090

permit. A completed application that is not acted upon within 120

2091

days after receipt is deemed approved, and the bureau division

2092

shall grant the permit.

2093

     (2)  Upon each application filed and approved, a permit

2094

shall be issued to the applicant setting forth the name of the

2095

permitholder, the location of the pari-mutuel facility, the type

2096

of pari-mutuel activity desired to be conducted, and a statement

2097

showing qualifications of the applicant to conduct pari-mutuel

2098

performances under this chapter; however, a permit is ineffectual

2099

to authorize any pari-mutuel performances until approved by a

2100

majority of the electors participating in a ratification election

2101

in the county in which the applicant proposes to conduct pari-

2102

mutuel wagering activities. In addition, an application may not

2103

be considered, nor may a permit be issued by the bureau division

2104

or be voted upon in any county, to conduct horseraces, harness

2105

horse races, or dograces at a location within 100 miles of an

2106

existing pari-mutuel facility, or for jai alai within 50 miles of

2107

an existing pari-mutuel facility; this distance shall be measured

2108

on a straight line from the nearest property line of one pari-

2109

mutuel facility to the nearest property line of the other

2110

facility.

2111

     (3) The bureau division shall require that each applicant

2112

submit an application setting forth:

2113

     (a)  The full name of the applicant.

2114

     (b)  If a corporation, the name of the state in which

2115

incorporated and the names and addresses of the officers,

2116

directors, and shareholders holding 5 percent or more equity or,

2117

if a business entity other than a corporation, the names and

2118

addresses of the principals, partners, or shareholders holding 5

2119

percent or more equity.

2120

     (c)  The names and addresses of the ultimate equitable

2121

owners for a corporation or other business entity, if different

2122

from those provided under paragraph (b), unless the securities of

2123

the corporation or entity are registered pursuant to s. 12 of the

2124

Securities Exchange Act of 1934, 15 U.S.C. ss. 78a-78kk; and if

2125

such corporation or entity files with the United States

2126

Securities and Exchange Commission the reports required by s. 13

2127

of that act or if the securities of the corporation or entity are

2128

regularly traded on an established securities market in the

2129

United States.

2130

     (d)  The exact location where the applicant will conduct

2131

pari-mutuel performances.

2132

     (e)  Whether the pari-mutuel facility is owned or leased

2133

and, if leased, the name and residence of the fee owner or, if a

2134

corporation, the names and addresses of the directors and

2135

stockholders thereof. However, this chapter does not prevent a

2136

person from applying to the bureau division for a permit to

2137

conduct pari-mutuel operations, regardless of whether the pari-

2138

mutuel facility has been constructed or not, and having an

2139

election held in any county at the same time that elections are

2140

held for the ratification of any permit in that county.

2141

     (f)  A statement of the assets and liabilities of the

2142

applicant.

2143

     (g)  The names and addresses of any mortgagee of any pari-

2144

mutuel facility and any financial agreement between the parties.

2145

The bureau division may require the names and addresses of the

2146

officers and directors of the mortgagee, and of those

2147

stockholders who hold more than 10 percent of the stock of the

2148

mortgagee.

2149

     (h)  A business plan for the first year of operation.

2150

     (i)  For each individual listed in the application as an

2151

owner, partner, officer, or director, a complete set of

2152

fingerprints that has been taken by an authorized law enforcement

2153

officer. These sets of fingerprints must be submitted to the

2154

Federal Bureau of Investigation for processing. Applicants who

2155

are foreign nationals shall submit such documents as necessary to

2156

allow the bureau division to conduct criminal history records

2157

checks in the applicant's home country. The applicant must pay

2158

the cost of processing. The bureau division may charge a $2

2159

handling fee for each set of fingerprint records.

2160

     (j)  The type of pari-mutuel activity to be conducted and

2161

the desired period of operation.

2162

     (k) Other information the bureau division requires.

2163

     (4) The bureau division shall require each applicant to

2164

deposit with the board of county commissioners of the county in

2165

which the election is to be held, a sufficient sum, in currency

2166

or by check certified by a bank licensed to do business in the

2167

state to pay the expenses of holding the election provided in s.

2168

550.0651.

2169

     (5)  Upon receiving an application and any amendments

2170

properly made thereto, the bureau division shall further

2171

investigate the matters contained in the application. If the

2172

applicant meets all requirements, conditions, and qualifications

2173

set forth in this chapter and the rules of the bureau division,

2174

the bureau division shall grant the permit.

2175

     (6)  After initial approval of the permit and the source of

2176

financing, the terms and parties of any subsequent refinancing

2177

must be disclosed by the applicant or the permitholder to the

2178

bureau division.

2179

     (7) If the bureau division refuses to grant the permit, the

2180

money deposited with the board of county commissioners for

2181

holding the election must be refunded to the applicant. If the

2182

bureau division grants the permit applied for, the board of

2183

county commissioners shall order an election in the county to

2184

decide whether the permit will be approved, as provided in s.

2185

550.0651.

2186

     (8)(a) The bureau division may charge the applicant for

2187

reasonable, anticipated costs incurred by the bureau division in

2188

determining the eligibility of any person or entity specified in

2189

s. 550.1815(1)(a) to hold any pari-mutuel permit, against such

2190

person or entity.

2191

     (b) The bureau division may, by rule, determine the manner

2192

of paying its anticipated costs associated with determination of

2193

eligibility and the procedure for filing applications for

2194

determination of eligibility.

2195

     (c) The bureau division shall furnish to the applicant an

2196

itemized statement of actual costs incurred during the

2197

investigation to determine eligibility.

2198

     (d)  If unused funds remain at the conclusion of such

2199

investigation, they must be returned to the applicant within 60

2200

days after the determination of eligibility has been made.

2201

     (e)  If the actual costs of investigation exceed anticipated

2202

costs, the bureau division shall assess the applicant the amount

2203

necessary to recover all actual costs.

2204

     (9)(a) After a permit has been granted by the bureau

2205

division and has been ratified and approved by the majority of

2206

the electors participating in the election in the county

2207

designated in the permit, the bureau division shall grant to the

2208

lawful permitholder, subject to the conditions of this chapter, a

2209

license to conduct pari-mutuel operations under this chapter,

2210

and, except as provided in s. 550.5251, the bureau division shall

2211

fix annually the time, place, and number of days during which

2212

pari-mutuel operations may be conducted by the permitholder at

2213

the location fixed in the permit and ratified in the election.

2214

After the first license has been issued to the holder of a

2215

ratified permit for racing in any county, all subsequent annual

2216

applications for a license by that permitholder must be

2217

accompanied by proof, in such form as the bureau division

2218

requires, that the ratified permitholder still possesses all the

2219

qualifications prescribed by this chapter and that the permit has

2220

not been recalled at a later election held in the county.

2221

     (b) The bureau division may revoke or suspend any permit or

2222

license issued under this chapter upon the willful violation by

2223

the permitholder or licensee of any provision of this chapter or

2224

of any rule adopted under this chapter. In lieu of suspending or

2225

revoking a permit or license, the bureau division may impose a

2226

civil penalty against the permitholder or licensee for a

2227

violation of this chapter or any rule adopted by the bureau

2228

division. The penalty so imposed may not exceed $1,000 for each

2229

count or separate offense. All penalties imposed and collected

2230

must be deposited with the Chief Financial Officer to the credit

2231

of the General Revenue Fund.

2232

     (10)  If a permitholder has failed to complete construction

2233

of at least 50 percent of the facilities necessary to conduct

2234

pari-mutuel operations within 12 months after approval by the

2235

voters of the permit, the bureau division shall revoke the permit

2236

upon adequate notice to the permitholder. However, the bureau

2237

division, upon good cause shown by the permitholder, may grant

2238

one extension of up to 12 months.

2239

     (11)(a)  A permit granted under this chapter may not be

2240

transferred or assigned except upon written approval by the

2241

bureau division pursuant to s. 550.1815, except that the holder

2242

of any permit that has been converted to a jai alai permit may

2243

lease or build anywhere within the county in which its permit is

2244

located.

2245

     (b)  If a permit to conduct pari-mutuel wagering is held by

2246

a corporation or business entity other than an individual, the

2247

transfer of 10 percent or more of the stock or other evidence of

2248

ownership or equity in the permitholder may not be made without

2249

the prior approval of the transferee by the bureau division

2250

pursuant to s. 550.1815.

2251

     (12)  Changes in ownership or interest of a pari-mutuel

2252

permit of 5 percent or more of the stock or other evidence of

2253

ownership or equity in the permitholder shall be approved by the

2254

bureau division prior to such change, unless the owner is an

2255

existing owner of that permit who was previously approved by the

2256

bureau division. Changes in ownership or interest of a pari-

2257

mutuel permit of less than 5 percent shall be reported to the

2258

bureau division within 20 days of the change. The bureau division

2259

may then conduct an investigation to ensure that the permit is

2260

properly updated to show the change in ownership or interest.

2261

     (13)(a) Notwithstanding any provisions of this chapter, a

2262

no thoroughbred horse racing permit or license issued under this

2263

chapter may not shall be transferred, or reissued when such

2264

reissuance is in the nature of a transfer so as to permit or

2265

authorize a licensee to change the location of a thoroughbred

2266

horse racetrack except upon proof in such form as the bureau

2267

division may prescribe that a referendum election has been held:

2268

     1.  If the proposed new location is within the same county

2269

as the already licensed location, in the county where the

2270

licensee desires to conduct the race meeting and that a majority

2271

of the electors voting on that question in such election voted in

2272

favor of the transfer of such license.

2273

     2.  If the proposed new location is not within the same

2274

county as the already licensed location, in the county where the

2275

licensee desires to conduct the race meeting and in the county

2276

where the licensee is already licensed to conduct the race

2277

meeting and that a majority of the electors voting on that

2278

question in each such election voted in favor of the transfer of

2279

such license.

2280

     (b)  Each referendum held under the provisions of this

2281

subsection shall be held in accordance with the electoral

2282

procedures for ratification of permits, as provided in s.

2283

550.0651. The expense of each such referendum shall be borne by

2284

the licensee requesting the transfer.

2285

     Section 43.  Subsections (1), (3), and (5) of section

2286

550.0651, Florida Statutes, are amended to read:

2287

     550.0651  Elections for ratification of permits.--

2288

     (1)  The holder of any permit may have submitted to the

2289

electors of the county designated therein the question whether or

2290

not such permit will be ratified or rejected. Such questions

2291

shall be submitted to the electors for approval or rejection at a

2292

special election to be called for that purpose only. The board of

2293

county commissioners of the county designated, upon the

2294

presentation to such board at a regular or special meeting of a

2295

written application, accompanied by a certified copy of the

2296

permit granted by the bureau division, and asking for an election

2297

in the county in which the application was made, shall order a

2298

special election in the county for the particular purpose of

2299

deciding whether such permit shall be approved and license issued

2300

and race meetings permitted in such county by such permittee and

2301

shall cause the clerk of such board to give notice of the special

2302

election by publishing the same once each week for 2 consecutive

2303

weeks in one or more newspapers of general circulation in the

2304

county. Each permit covering each track must be voted upon

2305

separately and in separate elections, and an election may not be

2306

called more often than once every 2 years for the ratification of

2307

any permit covering the same track.

2308

     (3) When a permit has been granted by the bureau division

2309

and no application to the board of county commissioners has been

2310

made by the permittee within 6 months after the granting of the

2311

permit, the permit becomes void. The bureau division shall cancel

2312

the permit without notice to the permitholder, and the board of

2313

county commissioners holding the deposit for the election shall

2314

refund the deposit to the permitholder upon being notified by the

2315

bureau division that the permit has become void and has been

2316

canceled.

2317

     (5)  If at any such special election the majority of the

2318

electors voting on the question of ratification or rejection of

2319

any permit vote against such ratification, such permit is void.

2320

If a majority of the electors voting on the question of

2321

ratification or rejection of any permit vote for such

2322

ratification, such permit becomes effectual and the holder

2323

thereof may conduct racing upon complying with the other

2324

provisions of this chapter. The board of county commissioners

2325

shall immediately certify the results of the election to the

2326

bureau division.

2327

     Section 44.  Subsections (1) and (4) of section 550.0745,

2328

Florida Statutes, are amended to read:

2329

     550.0745  Conversion of pari-mutuel permit to summer jai

2330

alai permit.--

2331

     (1)  The owner or operator of a pari-mutuel permit who is

2332

authorized by the bureau division to conduct pari-mutuel pools on

2333

exhibition sports in any county having five or more such pari-

2334

mutuel permits and whose mutuel play from the operation of such

2335

pari-mutuel pools for the 2 consecutive years next prior to

2336

filing an application under this section has had the smallest

2337

play or total pool within the county may apply to the bureau

2338

division to convert its permit to a permit to conduct a summer

2339

jai alai fronton in such county during the summer season

2340

commencing on May 1 and ending on November 30 of each year on

2341

such dates as may be selected by such permittee for the same

2342

number of days and performances as are allowed and granted to

2343

winter jai alai frontons within such county. If a permittee who

2344

is eligible under this section to convert a permit declines to

2345

convert, a new permit is hereby made available in that

2346

permittee's county to conduct summer jai alai games as provided

2347

by this section, notwithstanding mileage and permit ratification

2348

requirements. If a permittee converts a quarter horse permit

2349

pursuant to this section, nothing in this section prohibits the

2350

permittee from obtaining another quarter horse permit. Such

2351

permittee shall pay the same taxes as are fixed and required to

2352

be paid from the pari-mutuel pools of winter jai alai permittees

2353

and is bound by all of the rules and provisions of this chapter

2354

which apply to the operation of winter jai alai frontons. Such

2355

permittee shall only be permitted to operate a jai alai fronton

2356

after its application has been submitted to the bureau division

2357

and its license has been issued pursuant to the application. The

2358

license is renewable from year to year as provided by law.

2359

     (4)  The provisions of this chapter which prohibit the

2360

location and operation of jai alai frontons within a specified

2361

distance from the location of another jai alai fronton or other

2362

permittee and which prohibit the bureau division from granting

2363

any permit at a location within a certain designated area do not

2364

apply to the provisions of this section and do not prevent the

2365

issuance of a license under this section.

2366

     Section 45.  Subsections (1) and (2), paragraph (c) of

2367

subsection (3), and subsections (5) and (6) of section 550.0951,

2368

Florida Statutes, are amended to read:

2369

     550.0951  Payment of daily license fee and taxes;

2370

penalties.--

2371

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

2372

business of conducting race meetings or jai alai games under this

2373

chapter, hereinafter referred to as the "permitholder,"

2374

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

2375

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

2376

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

2377

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

2378

racetrack or fronton licensed under this chapter. In addition to

2379

the tax exemption specified in s. 550.09514(1) of $360,000 or

2380

$500,000 per greyhound permitholder per state fiscal year, each

2381

greyhound permitholder shall receive in the current state fiscal

2382

year a tax credit equal to the number of live greyhound races

2383

conducted in the previous state fiscal year times the daily

2384

license fee specified for each dograce in this subsection

2385

applicable for the previous state fiscal year. This tax credit

2386

and the exemption in s. 550.09514(1) shall be applicable to any

2387

tax imposed by this chapter or the daily license fees imposed by

2388

this chapter except during any charity or scholarship

2389

performances conducted pursuant to s. 550.0351. Each permitholder

2390

shall pay daily license fees not to exceed $500 per day on any

2391

simulcast races or games on which such permitholder accepts

2392

wagers regardless of the number of out-of-state events taken or

2393

the number of out-of-state locations from which such events are

2394

taken. This license fee shall be deposited with the Chief

2395

Financial Officer to the credit of the Pari-mutuel Wagering Trust

2396

Fund.

2397

     (b)  Each permitholder that cannot utilize the full amount

2398

of the exemption of $360,000 or $500,000 provided in s.

2399

550.09514(1) or the daily license fee credit provided in this

2400

section may, after notifying the bureau division in writing,

2401

elect once per state fiscal year on a form provided by the bureau

2402

division to transfer such exemption or credit or any portion

2403

thereof to any greyhound permitholder which acts as a host track

2404

to such permitholder for the purpose of intertrack wagering. Once

2405

an election to transfer such exemption or credit is filed with

2406

the bureau division, it shall not be rescinded. The bureau

2407

division shall disapprove the transfer when the amount of the

2408

exemption or credit or portion thereof is unavailable to the

2409

transferring permitholder or when the permitholder who is

2410

entitled to transfer the exemption or credit or who is entitled

2411

to receive the exemption or credit owes taxes to the state

2412

pursuant to a deficiency letter or administrative complaint

2413

issued by the bureau division. Upon approval of the transfer by

2414

the bureau division, the transferred tax exemption or credit

2415

shall be effective for the first performance of the next biweekly

2416

pay period as specified in subsection (5). The exemption or

2417

credit transferred to such host track may be applied by such host

2418

track against any taxes imposed by this chapter or daily license

2419

fees imposed by this chapter. The greyhound permitholder host

2420

track to which such exemption or credit is transferred shall

2421

reimburse such permitholder the exact monetary value of such

2422

transferred exemption or credit as actually applied against the

2423

taxes and daily license fees of the host track. The bureau

2424

division shall ensure that all transfers of exemption or credit

2425

are made in accordance with this subsection and shall have the

2426

authority to adopt rules to ensure the implementation of this

2427

section.     

2428

     (2)  ADMISSION TAX.--

2429

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

2430

charge for entrance to the permitholder's facility and grandstand

2431

area, or 10 cents, whichever is greater, is imposed on each

2432

person attending a horserace, dograce, or jai alai game. The

2433

permitholder shall be responsible for collecting the admission

2434

tax.

2435

     (b) No Admission tax under this chapter or chapter 212 may

2436

not shall be imposed on any free passes or complimentary cards

2437

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

2438

admission to pari-mutuel events.

2439

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

2440

officers, officials, and employees or other persons actually

2441

engaged in working at the racetrack, including accredited press

2442

representatives such as reporters and editors, and may also issue

2443

tax-free passes to other permitholders for the use of their

2444

officers and officials. The permitholder shall file with the

2445

bureau division a list of all persons to whom tax-free passes are

2446

issued under this paragraph.

2447

     (3)  TAX ON HANDLE.--Each permitholder shall pay a tax on

2448

contributions to pari-mutuel pools, the aggregate of which is

2449

hereinafter referred to as "handle," on races or games conducted

2450

by the permitholder. The tax is imposed daily and is based on the

2451

total contributions to all pari-mutuel pools conducted during the

2452

daily performance. If a permitholder conducts more than one

2453

performance daily, the tax is imposed on each performance

2454

separately.

2455

     (c)1.  The tax on handle for intertrack wagering is 2.0

2456

percent of the handle if the host track is a horse track, 3.3

2457

percent if the host track is a harness track, 5.5 percent if the

2458

host track is a dog track, and 7.1 percent if the host track is a

2459

jai alai fronton. The tax on handle for intertrack wagering is

2460

0.5 percent if the host track and the guest track are

2461

thoroughbred permitholders or if the guest track is located

2462

outside the market area of the host track and within the market

2463

area of a thoroughbred permitholder currently conducting a live

2464

race meet. The tax on handle for intertrack wagering on

2465

rebroadcasts of simulcast thoroughbred horseraces is 2.4 percent

2466

of the handle and 1.5 percent of the handle for intertrack

2467

wagering on rebroadcasts of simulcast harness horseraces. The tax

2468

shall be deposited into the Pari-mutuel Wagering Trust Fund.

2469

     2.  The tax on handle for intertrack wagers accepted by any

2470

dog track located in an area of the state in which there are only

2471

three permitholders, all of which are greyhound permitholders,

2472

located in three contiguous counties, from any greyhound

2473

permitholder also located within such area or any dog track or

2474

jai alai fronton located as specified in s. 550.615(6) or (9), on

2475

races or games received from the same class of permitholder

2476

located within the same market area is 3.9 percent if the host

2477

facility is a greyhound permitholder and, if the host facility is

2478

a jai alai permitholder, the rate shall be 6.1 percent except

2479

that it shall be 2.3 percent on handle at such time as the total

2480

tax on intertrack handle paid to the bureau division by the

2481

permitholder during the current state fiscal year exceeds the

2482

total tax on intertrack handle paid to the bureau division by the

2483

permitholder during the 1992-1993 state fiscal year.

2484

     (5)  PAYMENT AND DISPOSITION OF FEES AND TAXES.--Payment for

2485

the admission tax, tax on handle, and the breaks tax imposed by

2486

this section shall be paid to the bureau division. The bureau

2487

division shall deposit these sums with the Chief Financial

2488

Officer, to the credit of the Pari-mutuel Wagering Trust Fund,

2489

hereby established. The permitholder shall remit to the bureau

2490

division payment for the daily license fee, the admission tax,

2491

the tax on handle, and the breaks tax. Such payments shall be

2492

remitted by 3 p.m. Wednesday of each week for taxes imposed and

2493

collected for the preceding week ending on Sunday. Permitholders

2494

shall file a report under oath by the 5th day of each calendar

2495

month for all taxes remitted during the preceding calendar month.

2496

Such payments shall be accompanied by a report under oath showing

2497

the total of all admissions, the pari-mutuel wagering activities

2498

for the preceding calendar month, and such other information as

2499

may be prescribed by the bureau division.

2500

     (6)  PENALTIES.--

2501

     (a)  The failure of any permitholder to make payments as

2502

prescribed in subsection (5) is a violation of this section, and

2503

the permitholder may be subjected by the bureau division to a

2504

civil penalty of up to $1,000 for each day the tax payment is not

2505

remitted. All penalties imposed and collected shall be deposited

2506

in the General Revenue Fund. If a permitholder fails to pay

2507

penalties imposed by order of the bureau division under this

2508

subsection, the bureau division may suspend or revoke the license

2509

of the permitholder, cancel the permit of the permitholder, or

2510

deny issuance of any further license or permit to the

2511

permitholder.

2512

     (b)  In addition to the civil penalty prescribed in

2513

paragraph (a), any willful or wanton failure by any permitholder

2514

to make payments of the daily license fee, admission tax, tax on

2515

handle, or breaks tax constitutes sufficient grounds for the

2516

bureau division to suspend or revoke the license of the

2517

permitholder, to cancel the permit of the permitholder, or to

2518

deny issuance of any further license or permit to the

2519

permitholder.

2520

     Section 46.  Subsections (2) and (3) of section 550.09511,

2521

Florida Statutes, are amended to read:

2522

     550.09511  Jai alai taxes; abandoned interest in a permit

2523

for nonpayment of taxes.--

2524

     (2)  Notwithstanding the provisions of s. 550.0951(3)(b),

2525

wagering on live jai alai performances shall be subject to the

2526

following taxes:

2527

     (a)1.  The tax on handle per performance for live jai alai

2528

performances is 4.25 percent of handle per performance. However,

2529

when the live handle of a permitholder during the preceding state

2530

fiscal year was less than $15 million, the tax shall be paid on

2531

the handle in excess of $30,000 per performance per day.

2532

     2.  The tax rate shall be applicable only until the

2533

requirements of paragraph (b) are met.

2534

     (b)  At such time as the total of admissions tax, daily

2535

license fee, and tax on handle for live jai alai performances

2536

paid to the bureau division by a permitholder during the current

2537

state fiscal year exceeds the total state tax revenues from

2538

wagering on live jai alai performances paid or due by the

2539

permitholder in fiscal year 1991-1992, the permitholder shall pay

2540

tax on handle for live jai alai performances at a rate of 2.55

2541

percent of the handle per performance for the remainder of the

2542

current state fiscal year. For purposes of this section, total

2543

state tax revenues on live jai alai wagering in fiscal year 1991-

2544

1992 shall include any admissions tax, tax on handle, surtaxes on

2545

handle, and daily license fees.

2546

     (c) If no tax on handle for live jai alai performances was

2547

not were paid to the bureau division by a jai alai permitholder

2548

during the 1991-1992 state fiscal year, then at such time as the

2549

total of admissions tax, daily license fee, and tax on handle for

2550

live jai alai performances paid to the bureau division by a

2551

permitholder during the current state fiscal year exceeds the

2552

total state tax revenues from wagering on live jai alai

2553

performances paid or due by the permitholder in the last state

2554

fiscal year in which the permitholder conducted a full schedule

2555

of live games, the permitholder shall pay tax on handle for live

2556

jai alai performances at a rate of 3.3 percent of the handle per

2557

performance for the remainder of the current state fiscal year.

2558

For purposes of this section, total state tax revenues on live

2559

jai alai wagering shall include any admissions tax, tax on

2560

handle, surtaxes on handle, and daily license fees. This

2561

paragraph shall take effect July 1, 1993.

2562

     (d)  A permitholder who obtains a new permit issued by the

2563

bureau division subsequent to the 1991-1992 state fiscal year and

2564

a permitholder whose permit has been converted to a jai alai

2565

permit under the provisions of this chapter, shall, at such time

2566

as the total of admissions tax, daily license fee, and tax on

2567

handle for live jai alai performances paid to the bureau division

2568

by the permitholder during the current state fiscal year exceeds

2569

the average total state tax revenues from wagering on live jai

2570

alai performances for the first 3 consecutive jai alai seasons

2571

paid to or due the bureau division by the permitholder and during

2572

which the permitholder conducted a full schedule of live games,

2573

pay tax on handle for live jai alai performances at a rate of 3.3

2574

percent of the handle per performance for the remainder of the

2575

current state fiscal year.

2576

     (e)  The payment of taxes pursuant to paragraphs (b), (c),

2577

and (d) shall be calculated and commence beginning the day after

2578

the biweekly period in which the permitholder is first entitled

2579

to the reduced rate specified in this section and the report of

2580

taxes required by s. 550.0951(5) is submitted to the bureau

2581

division.

2582

     (f)  A jai alai permitholder paying taxes under this section

2583

shall retain the breaks and pay an amount equal to the breaks as

2584

special prize awards which shall be in addition to the regular

2585

contracted prize money paid to jai alai players at the

2586

permitholder's facility. Payment of the special prize money shall

2587

be made during the permitholder's current meet.

2588

     (g) For purposes of this section, "handle" has shall have

2589

the same meaning as in s. 550.0951, and does shall not include

2590

handle from intertrack wagering.

2591

     (3)(a)  Notwithstanding the provisions of subsection (2) and

2592

s. 550.0951(3)(c)1., any jai alai permitholder which is

2593

restricted under Florida law from operating live performances on

2594

a year-round basis is entitled to conduct wagering on live

2595

performances at a tax rate of 3.85 percent of live handle. Such

2596

permitholder is also entitled to conduct intertrack wagering as a

2597

host permitholder on live jai alai games at its fronton at a tax

2598

rate of 3.3 percent of handle at such time as the total tax on

2599

intertrack handle paid to the bureau division by the permitholder

2600

during the current state fiscal year exceeds the total tax on

2601

intertrack handle paid to the bureau division by the permitholder

2602

during the 1992-1993 state fiscal year.

2603

     (b)  The payment of taxes pursuant to paragraph (a) shall be

2604

calculated and commence beginning the day after the biweekly

2605

period in which the permitholder is first entitled to the reduced

2606

rate specified in this subsection.

2607

     Section 47.  Paragraph (b) of subsection (3) of section

2608

550.09512, Florida Statutes, is amended to read:

2609

     550.09512  Harness horse taxes; abandoned interest in a

2610

permit for nonpayment of taxes.--

2611

     (3)

2612

     (b)  In order to maximize the tax revenues to the state, the

2613

bureau division shall reissue an escheated harness horse permit

2614

to a qualified applicant pursuant to the provisions of this

2615

chapter as for the issuance of an initial permit. However, the

2616

provisions of this chapter relating to referendum requirements

2617

for a pari-mutuel permit do shall not apply to the reissuance of

2618

an escheated harness horse permit. As specified in the

2619

application and upon approval by the bureau division of an

2620

application for the permit, the new permitholder shall be

2621

authorized to operate a harness horse facility anywhere in the

2622

same county in which the escheated permit was authorized to be

2623

operated, notwithstanding the provisions of s. 550.054(2)

2624

relating to mileage limitations.

2625

     Section 48.  Subsection (2) of section 550.09514, Florida

2626

Statutes, is amended to read:

2627

     550.09514  Greyhound dogracing taxes; purse requirements.--

2628

     (2)(a) The bureau division shall determine for each

2629

greyhound permitholder the annual purse percentage rate of live

2630

handle for the state fiscal year 1993-1994 by dividing total

2631

purses paid on live handle by the permitholder, exclusive of

2632

payments made from outside sources, during the 1993-1994 state

2633

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

2634

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

2635

races conducted during its current race meet a percentage of its

2636

live handle not less than the percentage determined under this

2637

paragraph, exclusive of payments made by outside sources, for its

2638

1993-1994 state fiscal year.

2639

     (b)  Except as otherwise set forth herein, in addition to

2640

the minimum purse percentage required by paragraph (a), each

2641

permitholder shall pay as purses an annual amount equal to 75

2642

percent of the daily license fees paid by each permitholder for

2643

the 1994-1995 fiscal year. This purse supplement shall be

2644

disbursed weekly during the permitholder's race meet in an amount

2645

determined by dividing the annual purse supplement by the number

2646

of performances approved for the permitholder pursuant to its

2647

annual license and multiplying that amount by the number of

2648

performances conducted each week. For the greyhound permitholders

2649

in the county where there are two greyhound permitholders located

2650

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

2651

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

2652

fees paid by such permitholders for the 1994-1995 fiscal year.

2653

These permitholders shall be jointly and severally liable for

2654

such purse payments. The additional purses provided by this

2655

paragraph must be used exclusively for purses other than stakes.

2656

The bureau division shall conduct audits necessary to ensure

2657

compliance with this section.

2658

     (c)1.  Each greyhound permitholder when conducting at least

2659

three live performances during any week shall pay purses in that

2660

week on wagers it accepts as a guest track on intertrack and

2661

simulcast greyhound races at the same rate as it pays on live

2662

races. Each greyhound permitholder when conducting at least three

2663

live performances during any week shall pay purses in that week,

2664

at the same rate as it pays on live races, on wagers accepted on

2665

greyhound races at a guest track which is not conducting live

2666

racing and is located within the same market area as the

2667

greyhound permitholder conducting at least three live

2668

performances during any week.

2669

     2.  Each host greyhound permitholder shall pay purses on its

2670

simulcast and intertrack broadcasts of greyhound races to guest

2671

facilities that are located outside its market area in an amount

2672

equal to one quarter of an amount determined by subtracting the

2673

transmission costs of sending the simulcast or intertrack

2674

broadcasts from an amount determined by adding the fees received

2675

for greyhound simulcast races plus 3 percent of the greyhound

2676

intertrack handle at guest facilities that are located outside

2677

the market area of the host and that paid contractual fees to the

2678

host for such broadcasts of greyhound races.

2679

     (d) The bureau division shall require sufficient

2680

documentation from each greyhound permitholder regarding purses

2681

paid on live racing to assure that the annual purse percentage

2682

rates paid by each permitholder on the live races are not reduced

2683

below those paid during the 1993-1994 state fiscal year. The

2684

bureau division shall require sufficient documentation from each

2685

greyhound permitholder to assure that the purses paid by each

2686

permitholder on the greyhound intertrack and simulcast broadcasts

2687

are in compliance with the requirements of paragraph (c).

2688

     (e)  In addition to the purse requirements of paragraphs

2689

(a)-(c), each greyhound permitholder shall pay as purses an

2690

amount equal to one-third of the amount of the tax reduction on

2691

live and simulcast handle applicable to such permitholder as a

2692

result of the reductions in tax rates provided by this act

2693

through the amendments to s. 550.0951(3). With respect to

2694

intertrack wagering when the host and guest tracks are greyhound

2695

permitholders not within the same market area, an amount equal to

2696

the tax reduction applicable to the guest track handle as a

2697

result of the reduction in tax rate provided by this act through

2698

the amendment to s. 550.0951(3) shall be distributed to the guest

2699

track, one-third of which amount shall be paid as purses at the

2700

guest track. However, if the guest track is a greyhound

2701

permitholder within the market area of the host or if the guest

2702

track is not a greyhound permitholder, an amount equal to such

2703

tax reduction applicable to the guest track handle shall be

2704

retained by the host track, one-third of which amount shall be

2705

paid as purses at the host track. These purse funds shall be

2706

disbursed in the week received if the permitholder conducts at

2707

least one live performance during that week. If the permitholder

2708

does not conduct at least one live performance during the week in

2709

which the purse funds are received, the purse funds shall be

2710

disbursed weekly during the permitholder's next race meet in an

2711

amount determined by dividing the purse amount by the number of

2712

performances approved for the permitholder pursuant to its annual

2713

license, and multiplying that amount by the number of

2714

performances conducted each week. The bureau division shall

2715

conduct audits necessary to ensure compliance with this

2716

paragraph.

2717

     (f)  Each greyhound permitholder shall, during the

2718

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

2719

Division of Pari-Mutuel Wagering with a weekly report showing

2720

purses paid on live greyhound races and all greyhound intertrack

2721

and simulcast broadcasts, including both as a guest and a host

2722

together with the handle or commission calculations on which such

2723

purses were paid and the transmission costs of sending the

2724

simulcast or intertrack broadcasts, so that the kennel operators

2725

may determine statutory and contractual compliance.

2726

     (g)  Each greyhound permitholder shall make direct payment

2727

of purses to the greyhound owners who have filed with such

2728

permitholder appropriate federal taxpayer identification

2729

information based on the percentage amount agreed upon between

2730

the kennel operator and the greyhound owner.

2731

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

2732

contract with a greyhound permitholder, the permitholder shall

2733

make deductions from purses paid to each kennel operator electing

2734

such deduction and shall make a direct payment of such deductions

2735

to the local association of greyhound kennel operators formed by

2736

a majority of kennel operators under contract with the

2737

permitholder. The amount of the deduction shall be at least 1

2738

percent of purses, as determined by the local association of

2739

greyhound kennel operators. No deductions may be taken pursuant

2740

to this paragraph without a kennel operator's specific approval

2741

before or after the effective date of this act.

2742

     Section 49.  Paragraph (b) of subsection (3) of section

2743

550.09515, Florida Statutes, is amended to read:

2744

     550.09515  Thoroughbred horse taxes; abandoned interest in a

2745

permit for nonpayment of taxes.--

2746

     (3)

2747

     (b)  In order to maximize the tax revenues to the state, the

2748

bureau division shall reissue an escheated thoroughbred horse

2749

permit to a qualified applicant pursuant to the provisions of

2750

this chapter as for the issuance of an initial permit. However,

2751

the provisions of this chapter relating to referendum

2752

requirements for a pari-mutuel permit do shall not apply to the

2753

reissuance of an escheated thoroughbred horse permit. As

2754

specified in the application and upon approval by the bureau

2755

division of an application for the permit, the new permitholder

2756

shall be authorized to operate a thoroughbred horse facility

2757

anywhere in the same county in which the escheated permit was

2758

authorized to be operated, notwithstanding the provisions of s.

2759

550.054(2) relating to mileage limitations.

2760

     Section 50.  Subsection (1), paragraph (b) of subsection

2761

(2), and subsections (5), (6), (7), (8), and (10) of section

2762

550.105, Florida Statutes, are amended to read:

2763

     550.105  Occupational licenses of racetrack employees; fees;

2764

denial, suspension, and revocation of license; penalties and

2765

fines.--

2766

     (1)  Each person connected with a racetrack or jai alai

2767

fronton, as specified in paragraph (2)(a), shall purchase from

2768

the bureau division an annual occupational license, which license

2769

is valid from May 1 until June 30 of the following year. All

2770

moneys collected pursuant to this section each fiscal year shall

2771

be deposited into the Pari-mutuel Wagering Trust Fund. Any person

2772

may, at her or his option and pursuant to the rules adopted by

2773

the bureau division, purchase an occupational license valid for a

2774

period of 3 years if the purchaser of the license pays the full

2775

occupational license fee for each of the years for which the

2776

license is purchased at the time the 3-year license is requested.

2777

The occupational license shall be valid during its specified term

2778

at any pari-mutuel facility.

2779

     (2)

2780

     (b) The bureau division shall adopt rules pertaining to

2781

pari-mutuel occupational licenses.

2782

     (5)(a) The bureau division may:

2783

     1.  Deny a license to or revoke, suspend, or place

2784

conditions upon or restrictions on a license of any person who

2785

has been refused a license by any other state racing commission

2786

or racing authority;

2787

     2.  Deny, suspend, or place conditions on a license of any

2788

person who is under suspension or has unpaid fines in another

2789

jurisdiction;

2790

2791

if the state racing commission or racing authority of such other

2792

state or jurisdiction extends to the bureau division reciprocal

2793

courtesy to maintain the disciplinary control.

2794

     (b) The bureau division may deny, suspend, revoke, or

2795

declare ineligible any occupational license if the applicant for

2796

or holder thereof has violated the provisions of this chapter or

2797

the rules of the bureau division governing the conduct of persons

2798

connected with racetracks and frontons. In addition, the bureau

2799

division may deny, suspend, revoke, or declare ineligible any

2800

occupational license if the applicant for such license has been

2801

convicted in this state, in any other state, or under the laws of

2802

the United States of a capital felony, a felony, or an offense in

2803

any other state which would be a felony under the laws of this

2804

state involving arson; trafficking in, conspiracy to traffic in,

2805

smuggling, importing, conspiracy to smuggle or import, or

2806

delivery, sale, or distribution of a controlled substance; or a

2807

crime involving a lack of good moral character, or has had a

2808

pari-mutuel license revoked by this state or any other

2809

jurisdiction for an offense related to pari-mutuel wagering.

2810

     (c) The bureau division may deny, declare ineligible, or

2811

revoke any occupational license if the applicant for such license

2812

has been convicted of a felony or misdemeanor in this state, in

2813

any other state, or under the laws of the United States, if such

2814

felony or misdemeanor is related to gambling or bookmaking, as

2815

contemplated in s. 849.25, or involves cruelty to animals. If the

2816

applicant establishes that she or he is of good moral character,

2817

that she or he has been rehabilitated, and that the crime she or

2818

he was convicted of is not related to pari-mutuel wagering and is

2819

not a capital offense, the restrictions excluding offenders may

2820

be waived by the director of the bureau division.

2821

     (d) If an occupational license will expire by bureau

2822

division rule during the period of a suspension the bureau

2823

division intends to impose, or if a license would have expired

2824

but for pending administrative charges and the occupational

2825

licensee is found to be in violation of any of the charges, the

2826

license may be revoked and a time period of license ineligibility

2827

may be declared. The bureau division may bring administrative

2828

charges against any person not holding a current license for

2829

violations of statutes or rules which occurred while such person

2830

held an occupational license, and the bureau division may declare

2831

such person ineligible to hold a license for a period of time.

2832

The bureau division may impose a civil fine of up to $1,000 for

2833

each violation of the rules of the bureau division in addition to

2834

or in lieu of any other penalty provided for in this section. In

2835

addition to any other penalty provided by law, the bureau

2836

division may exclude from all pari-mutuel facilities in this

2837

state, for a period not to exceed the period of suspension,

2838

revocation, or ineligibility, any person whose occupational

2839

license application has been denied by the bureau division, who

2840

has been declared ineligible to hold an occupational license, or

2841

whose occupational license has been suspended or revoked by the

2842

bureau division.

2843

     (e) The bureau division may cancel any occupational license

2844

that has been voluntarily relinquished by the licensee.

2845

     (6)  In order to promote the orderly presentation of pari-

2846

mutuel meets authorized in this chapter, the bureau division may

2847

issue a temporary occupational license. The bureau division shall

2848

adopt rules to implement this subsection. However, no temporary

2849

occupational license shall be valid for more than 30 days, and no

2850

more than one temporary license may be issued for any person in

2851

any year.

2852

     (7) The bureau division may deny, revoke, or suspend any

2853

occupational license if the applicant therefor or holder thereof

2854

accumulates unpaid obligations or defaults in obligations, or

2855

issues drafts or checks that are dishonored or for which payment

2856

is refused without reasonable cause, if such unpaid obligations,

2857

defaults, or dishonored or refused drafts or checks directly

2858

relate to the sport of jai alai or racing being conducted at a

2859

pari-mutuel facility within this state.

2860

     (8) The bureau division may fine, or suspend or revoke, or

2861

place conditions upon, the license of any licensee who under oath

2862

knowingly provides false information regarding an investigation

2863

by the bureau division.

2864

     (10)  Upon application for an occupational license, the

2865

bureau division may require the applicant's full legal name; any

2866

nickname, alias, or maiden name for the applicant; name of the

2867

applicant's spouse; the applicant's date of birth, residence

2868

address, mailing address, residence address and business phone

2869

number, and social security number; disclosure of any felony or

2870

any conviction involving bookmaking, illegal gambling, or cruelty

2871

to animals; disclosure of any past or present enforcement or

2872

actions by any racing or gaming agency against the applicant; and

2873

any information the bureau division determines is necessary to

2874

establish the identity of the applicant or to establish that the

2875

applicant is of good moral character. Fingerprints shall be taken

2876

in a manner approved by the bureau division and then shall be

2877

submitted to the Federal Bureau of Investigation, or to the

2878

association of state officials regulating pari-mutuel wagering

2879

pursuant to the Federal Pari-mutuel Licensing Simplification Act

2880

of 1988. The cost of processing fingerprints shall be borne by

2881

the applicant and paid to the association of state officials

2882

regulating pari-mutuel wagering from the trust fund to which the

2883

processing fees are deposited. The bureau division shall require

2884

each applicant for an occupational license to have the

2885

applicant's signature witnessed and notarized or signed in the

2886

presence of a division official. The bureau division, by rule,

2887

may require additional information from licensees which is

2888

reasonably necessary to regulate the industry. The bureau

2889

division may, by rule, exempt certain occupations or groups of

2890

persons from the fingerprinting requirements.

2891

     Section 51.  Subsection (1) of section 550.1155, Florida

2892

Statutes, is amended to read:

2893

     550.1155  Authority of stewards, judges, panel of judges, or

2894

player's manager to impose penalties against occupational

2895

licensees; disposition of funds collected.--

2896

     (1)  The stewards at a horse racetrack; the judges at a dog

2897

track; or the judges, a panel of judges, or a player's manager at

2898

a jai alai fronton may impose a civil penalty against any

2899

occupational licensee for violation of the pari-mutuel laws or

2900

any rule adopted by the bureau division. The penalty may not

2901

exceed $1,000 for each count or separate offense or exceed 60

2902

days of suspension for each count or separate offense.

2903

     Section 52.  Subsections (2) and (3) of section 550.125,

2904

Florida Statutes, are amended to read:

2905

     550.125  Uniform reporting system; bond requirement.--

2906

     (2)(a)  Each permitholder that conducts race meetings or jai

2907

alai exhibitions under this chapter shall keep records that

2908

clearly show the total number of admissions and the total amount

2909

of money contributed to each pari-mutuel pool on each race or

2910

exhibition separately and the amount of money received daily from

2911

admission fees and, within 120 days after the end of its fiscal

2912

year, shall submit to the bureau division a complete annual

2913

report of its accounts, audited by a certified public accountant

2914

licensed to practice in the state.

2915

     (b) The bureau division shall adopt rules specifying the

2916

form and content of such reports, including, but not limited to,

2917

requirements for a statement of assets and liabilities, operating

2918

revenues and expenses, and net worth, which statement must be

2919

audited by a certified public accountant licensed to practice in

2920

this state, and any supporting informational schedule found

2921

necessary by the bureau division to verify the foregoing

2922

financial statement, which informational schedule must be

2923

attested to under oath by the permitholder or an officer of

2924

record, to permit the bureau division to:

2925

     1.  Assess the profitability and financial soundness of

2926

permitholders, both individually and as an industry;

2927

     2.  Plan and recommend measures necessary to preserve and

2928

protect the pari-mutuel revenues of the state; and

2929

     3.  Completely identify the holdings, transactions, and

2930

investments of permitholders with other business entities.

2931

     (c)  The Auditor General and the Office of Program Policy

2932

Analysis and Government Accountability may, pursuant to their own

2933

authority or at the direction of the Legislative Auditing

2934

Committee, audit, examine, and check the books and records of any

2935

permitholder. These audit reports shall become part of, and be

2936

maintained in, the bureau division files.

2937

     (d) The bureau division shall annually review the books and

2938

records of each permitholder and verify that the breaks and

2939

unclaimed ticket payments made by each permitholder are true and

2940

correct.

2941

     (3)(a)  Each permitholder to which a license is granted

2942

under this chapter, at its own cost and expense, must, before the

2943

license is delivered, give a bond in the penal sum of $50,000

2944

payable to the Governor of the state and her or his successors in

2945

office, with a surety or sureties to be approved by the bureau

2946

division and the Chief Financial Officer, conditioned to

2947

faithfully make the payments to the Chief Financial Officer in

2948

her or his capacity as treasurer of the bureau division; to keep

2949

its books and records and make reports as provided; and to

2950

conduct its racing in conformity with this chapter. When the

2951

greatest amount of tax owed during any month in the prior state

2952

fiscal year, in which a full schedule of live racing was

2953

conducted, is less than $50,000, the bureau division may assess a

2954

bond in a sum less than $50,000. The bureau division may review

2955

the bond for adequacy and require adjustments each fiscal year.

2956

The bureau may division has the authority to adopt rules to

2957

implement this paragraph and establish guidelines for such bonds.

2958

     (b)  The provisions of this chapter concerning bonding do

2959

not apply to nonwagering licenses issued pursuant to s. 550.505.

2960

     Section 53.  Subsections (1) and (3) of section 550.135,

2961

Florida Statutes, are amended to read:

2962

     550.135  Division of moneys derived under this law.--All

2963

moneys that are deposited with the Chief Financial Officer to the

2964

credit of the Pari-mutuel Wagering Trust Fund shall be

2965

distributed as follows:

2966

     (1)  The daily license fee revenues collected pursuant to s.

2967

550.0951(1) shall be used to fund the operating cost of the

2968

bureau division and to provide a proportionate share of the

2969

operation of the commission, the office of the bureau chief, the

2970

office of the division director, secretary and the Division of

2971

Gambling Oversight Administration of the Department of Business

2972

and Professional Regulation; however, other collections in the

2973

Pari-mutuel Wagering Trust Fund may also be used to fund the

2974

operation of the division in accordance with authorized

2975

appropriations.

2976

     (3)  The slot machine license fee, the slot machine

2977

occupational license fee, and the compulsive or addictive

2978

gambling prevention program fee collected pursuant to ss.

2979

551.106, 551.107(2)(a)1., and 551.118 shall be used to fund the

2980

direct and indirect operating expenses of the Bureau of Slot

2981

Machines and the Bureau of Compulsive Gambling division's slot

2982

machine regulation operations and to provide funding for relevant

2983

enforcement activities in accordance with authorized

2984

appropriations. Funds deposited into the Pari-mutuel Wagering

2985

Trust Fund pursuant to ss. 551.106, 551.107(2)(a)1., and 551.118

2986

shall be reserved in the trust fund for slot machine regulation

2987

operations within the Bureau of Slot Machines. On June 30, any

2988

unappropriated funds in excess of those necessary for incurred

2989

obligations and subsequent year cash flow for slot machine

2990

regulation operations shall be deposited with the Chief Financial

2991

Officer to the credit of the General Revenue Fund.

2992

     Section 54.  Subsection (1) of section 550.155, Florida

2993

Statutes, is amended to read:

2994

     550.155  Pari-mutuel pool within track enclosure; takeouts;

2995

breaks; penalty for purchasing part of a pari-mutuel pool for or

2996

through another in specified circumstances.--

2997

     (1)  Wagering on the results of a horserace, dograce, or on

2998

the scores or points of a jai alai game and the sale of tickets

2999

or other evidences showing an interest in or a contribution to a

3000

pari-mutuel pool are allowed within the enclosure of any pari-

3001

mutuel facility licensed and conducted under this chapter but are

3002

not allowed elsewhere in this state, must be supervised by the

3003

bureau division, and are subject to such reasonable rules that

3004

the bureau division prescribes.

3005

     Section 55.  Subsection (2) and paragraph (a) of subsection

3006

(3) of section 550.1648, Florida Statutes, are amended to read:

3007

     550.1648  Greyhound adoptions.--

3008

     (2)  In addition to the charity days authorized under s.

3009

550.0351, a greyhound permitholder may fund the greyhound

3010

adoption program by holding a charity racing day designated as

3011

"Greyhound Adopt-A-Pet Day." All profits derived from the

3012

operation of the charity day must be placed into a fund used to

3013

support activities at the racing facility which promote the

3014

adoption of greyhounds. The bureau division may adopt rules for

3015

administering the fund. Proceeds from the charity day authorized

3016

in this subsection may not be used as a source of funds for the

3017

purposes set forth in s. 550.1647.

3018

     (3)(a)  Upon a violation of this section by a permitholder

3019

or licensee, the bureau division may impose a penalty as provided

3020

in s. 550.0251(10) and require the permitholder to take

3021

corrective action.

3022

     Section 56.  Section 550.175, Florida Statutes, is amended

3023

to read:

3024

     550.175  Petition for election to revoke permit.--Upon

3025

petition of 20 percent of the qualified electors of any county

3026

wherein any racing has been licensed and conducted under this

3027

chapter, the county commissioners of such county shall provide

3028

for the submission to the electors of such county at the then

3029

next succeeding general election the question of whether any

3030

permit or permits theretofore granted shall be continued or

3031

revoked, and if a majority of the electors voting on such

3032

question in such election vote to cancel or recall the permit

3033

theretofore given, the bureau division may not thereafter grant

3034

any license on the permit so recalled. Every signature upon every

3035

recall petition must be signed in the presence of the clerk of

3036

the board of county commissioners at the office of the clerk of

3037

the circuit court of the county, and the petitioner must present

3038

at the time of such signing her or his registration receipt

3039

showing the petitioner's qualification as an elector of the

3040

county at the time of the signing of the petition. Not more than

3041

one permit may be included in any one petition; and, in all

3042

elections in which the recall of more than one permit is voted

3043

on, the voters shall be given an opportunity to vote for or

3044

against the recall of each permit separately. Nothing in This

3045

chapter does not shall be construed to prevent the holding of

3046

later referendum or recall elections.

3047

     Section 57.  Subsections (1), (3), and (5) of section

3048

550.1815, Florida Statutes, are amended to read:

3049

     550.1815  Certain persons prohibited from holding racing or

3050

jai alai permits; suspension and revocation.--

3051

     (1)  A corporation, general or limited partnership, sole

3052

proprietorship, business trust, joint venture, or unincorporated

3053

association, or other business entity may not hold any

3054

horseracing or dogracing permit or jai alai fronton permit in

3055

this state if any one of the persons or entities specified in

3056

paragraph (a) has been determined by the bureau division not to

3057

be of good moral character or has been convicted of any offense

3058

specified in paragraph (b).

3059

     (a)1.  The permitholder;

3060

     2.  An employee of the permitholder;

3061

     3.  The sole proprietor of the permitholder;

3062

     4.  A corporate officer or director of the permitholder;

3063

     5.  A general partner of the permitholder;

3064

     6.  A trustee of the permitholder;

3065

     7.  A member of an unincorporated association permitholder;

3066

     8.  A joint venturer of the permitholder;

3067

     9.  The owner of more than 5 percent of any equity interest

3068

in the permitholder, whether as a common shareholder, general or

3069

limited partner, voting trustee, or trust beneficiary; or

3070

     10.  An owner of any interest in the permit or permitholder,

3071

including any immediate family member of the owner, or holder of

3072

any debt, mortgage, contract, or concession from the

3073

permitholder, who by virtue thereof is able to control the

3074

business of the permitholder.

3075

     (b)1.  A felony in this state;

3076

     2.  Any felony in any other state which would be a felony if

3077

committed in this state under the laws of this state;

3078

     3.  Any felony under the laws of the United States;

3079

     4.  A felony under the laws of another state if related to

3080

gambling which would be a felony under the laws of this state if

3081

committed in this state; or

3082

     5.  Bookmaking as defined in s. 849.25.

3083

     (3) After notice and hearing, the bureau division shall

3084

refuse to issue or renew or shall suspend, as appropriate, any

3085

permit found in violation of subsection (1). The order shall

3086

become effective 120 days after service of the order upon the

3087

permitholder and shall be amended to constitute a final order of

3088

revocation unless the permitholder has, within that period of

3089

time, either caused the divestiture, or agreed with the convicted

3090

person upon a complete immediate divestiture, of her or his

3091

holding, or has petitioned the circuit court as provided in

3092

subsection (4) or, in the case of corporate officers or directors

3093

of the holder or employees of the holder, has terminated the

3094

relationship between the permitholder and those persons

3095

mentioned. The bureau division may, by order, extend the 120-day

3096

period for divestiture, upon good cause shown, to avoid

3097

interruption of any jai alai or race meeting or to otherwise

3098

effectuate this section. If no action has been taken by the

3099

permitholder within the 120-day period following the issuance of

3100

the order of suspension, the bureau division shall, without

3101

further notice or hearing, enter a final order of revocation of

3102

the permit. When any permitholder or sole proprietor of a

3103

permitholder is convicted of an offense specified in paragraph

3104

(1)(b), the bureau department may approve a transfer of the

3105

permit to a qualified applicant, upon a finding that revocation

3106

of the permit would impair the state's revenue from the operation

3107

of the permit or otherwise be detrimental to the interests of the

3108

state in the regulation of the industry of pari-mutuel wagering.

3109

In such approval, a no public referendum is not required,

3110

notwithstanding any other provision of law. A petition for

3111

transfer after conviction must be filed with the bureau

3112

department within 30 days after service upon the permitholder of

3113

the final order of revocation. The timely filing of such a

3114

petition automatically stays any revocation order until further

3115

order of the bureau department.

3116

     (5) The bureau division shall make such rules for the

3117

photographing, fingerprinting, and obtaining of personal data of

3118

individuals described in paragraph (1)(a) and the obtaining of

3119

such data regarding the business entities described in paragraph

3120

(1)(a) as is necessary to effectuate the provisions of this

3121

section.

3122

     Section 58.  Section 550.24055, Florida Statutes, is amended

3123

to read:

3124

     550.24055  Use of controlled substances or alcohol

3125

prohibited; testing of certain occupational licensees; penalty;

3126

evidence of test or action taken and admissibility for criminal

3127

prosecution limited.--

3128

     (1)  The use of a controlled substance as defined in chapter

3129

893 or of alcohol by any occupational licensees officiating at or

3130

participating in a race or jai alai game is prohibited.

3131

     (2)  The occupational licensees, by applying for and holding

3132

such licenses, are deemed to have given their consents to submit

3133

to an approved chemical test of their breath for the purpose of

3134

determining the alcoholic content of their blood and to a urine

3135

or blood test for the purpose of detecting the presence of

3136

controlled substances. Such tests shall only be conducted upon

3137

reasonable cause that a violation has occurred as shall be

3138

determined solely by the stewards at a horseracing meeting or the

3139

judges or board of judges at a dogtrack or jai alai meet. The

3140

failure to submit to such test may result in a suspension of the

3141

person's occupational license for a period of 10 days or until

3142

this section has been complied with, whichever is longer.

3143

     (a)  If there was at the time of the test 0.05 percent or

3144

less by weight of alcohol in the person's blood, the person is

3145

presumed not to have been under the influence of alcoholic

3146

beverages to the extent that the person's normal faculties were

3147

impaired, and no action of any sort may be taken by the stewards,

3148

judges, or board of judges or the bureau division.

3149

     (b)  If there was at the time of the test an excess of 0.05

3150

percent but less than 0.08 percent by weight of alcohol in the

3151

person's blood, that fact does not give rise to any presumption

3152

that the person was or was not under the influence of alcoholic

3153

beverages to the extent that the person's faculties were

3154

impaired, but the stewards, judges, or board of judges may

3155

consider that fact in determining whether or not the person will

3156

be allowed to officiate or participate in any given race or jai

3157

alai game.

3158

     (c)  If there was at the time of the test 0.08 percent or

3159

more by weight of alcohol in the person's blood, that fact is

3160

prima facie evidence that the person was under the influence of

3161

alcoholic beverages to the extent that the person's normal

3162

faculties were impaired, and the stewards or judges may take

3163

action as set forth in this section, but the person may not

3164

officiate at or participate in any race or jai alai game on the

3165

day of such test.

3166

3167

All tests relating to alcohol must be performed in a manner

3168

substantially similar, or identical, to the provisions of s.

3169

316.1934 and rules adopted pursuant to that section. Following a

3170

test of the urine or blood to determine the presence of a

3171

controlled substance as defined in chapter 893, if a controlled

3172

substance is found to exist, the stewards, judges, or board of

3173

judges may take such action as is permitted in this section.

3174

     (3)  A violation of subsection (2) is subject to the

3175

following penalties:

3176

     (a)  For the first violation, the stewards, judges, or board

3177

of judges may suspend a licensee for up to 10 days or in the

3178

alternative may impose a civil fine of up to $500 in lieu of a

3179

suspension.

3180

     (b)  For a second violation within 1 year after the first

3181

violation the stewards, judges, or board of judges may suspend a

3182

licensee for up to 30 days and in addition to or in lieu of

3183

suspension may impose a civil fine of up to $2,000.

3184

3185

In lieu of or in addition to the foregoing penalties, the

3186

stewards, judges, or board of judges may require the licensee to

3187

participate in a drug or alcohol rehabilitation program and to be

3188

retested.

3189

     (c)  If the second violation occurred within 1 year after

3190

the first violation, then upon the finding of a third violation

3191

of this section within 1 year after the second violation, the

3192

stewards, judges, or board of judges may suspend the licensee for

3193

up to 120 days; and the stewards, judges, or board of judges

3194

shall forward the results of the tests under paragraphs (a) and

3195

(b) and this violation to the bureau division. In addition to the

3196

action taken by the stewards, judges, or board of judges, the

3197

bureau division, after a hearing, may deny, suspend, or revoke

3198

the occupational license of the licensee and may impose a civil

3199

penalty of up to $5,000 in addition to, or in lieu of, a

3200

suspension or revocation, it being the intent of the Legislature

3201

that the bureau division shall have no authority over the

3202

enforcement of this section until a licensee has committed the

3203

third violation within 2 years after the first violation.

3204

     (4) Section 120.80(18) applies The provisions of s.

3205

120.80(4)(a) apply to all actions taken by the stewards, judges,

3206

or board of judges pursuant to this section without regard to the

3207

limitation contained therein.

3208

     (5)  This section does not apply to the possession and use

3209

of controlled or chemical substances that are prescribed as part

3210

of the care and treatment of a disease or injury by a

3211

practitioner licensed under chapter 458, chapter 459, part I of

3212

chapter 464, or chapter 466.

3213

     (6)  Evidence of any test or actions taken by the stewards,

3214

judges, or board of judges or the bureau division under this

3215

section is inadmissible for any purpose in any court for criminal

3216

prosecution, it being the intent of the Legislature to provide a

3217

method and means by which the health, safety, and welfare of

3218

those officiating at or participating in a race meet or a jai

3219

alai game are sufficiently protected. However, this subsection

3220

does not prohibit any person so authorized from pursuing an

3221

independent investigation as a result of a ruling made by the

3222

stewards, judges, or board of judges, or the bureau division.

3223

     Section 59.  Section 550.2415, Florida Statutes, is amended

3224

to read:

3225

     550.2415  Racing of animals under certain conditions

3226

prohibited; penalties; exceptions.--

3227

     (1)(a)  The racing of an animal with any drug, medication,

3228

stimulant, depressant, hypnotic, narcotic, local anesthetic, or

3229

drug-masking agent is prohibited. It is a violation of this

3230

section for a person to administer or cause to be administered

3231

any drug, medication, stimulant, depressant, hypnotic, narcotic,

3232

local anesthetic, or drug-masking agent to an animal which will

3233

result in a positive test for such substance based on samples

3234

taken from the animal immediately prior to or immediately after

3235

the racing of that animal. Test results and the identities of the

3236

animals being tested and of their trainers and owners of record

3237

are confidential and exempt from s. 119.07(1) and from s. 24(a),

3238

Art. I of the State Constitution for 10 days after testing of all

3239

samples collected on a particular day has been completed and any

3240

positive test results derived from such samples have been

3241

reported to the director of the bureau division or administrative

3242

action has been commenced.

3243

     (b)  It is a violation of this section for a race-day

3244

specimen to contain a level of a naturally occurring substance

3245

which exceeds normal physiological concentrations. The bureau

3246

division may adopt rules that specify normal physiological

3247

concentrations of naturally occurring substances in the natural

3248

untreated animal and rules that specify acceptable levels of

3249

environmental contaminants and trace levels of substances in test

3250

samples.

3251

     (c)  The finding of a prohibited substance in a race-day

3252

specimen constitutes prima facie evidence that the substance was

3253

administered and was carried in the body of the animal while

3254

participating in the race.

3255

     (2) Administrative action may be taken by the bureau

3256

division against an occupational licensee responsible pursuant to

3257

rule of the bureau division for the condition of an animal that

3258

has been impermissibly medicated or drugged in violation of this

3259

section.

3260

     (3)(a)  Upon the finding of a violation of this section, the

3261

bureau division may revoke or suspend the license or permit of

3262

the violator or deny a license or permit to the violator; impose

3263

a fine against the violator in an amount not exceeding $5,000;

3264

require the full or partial return of the purse, sweepstakes, and

3265

trophy of the race at issue; or impose against the violator any

3266

combination of such penalties. The finding of a violation of this

3267

section in no way prohibits a prosecution for criminal acts

3268

committed.

3269

     (b) The bureau division, notwithstanding the provisions of

3270

chapter 120, may summarily suspend the license of an occupational

3271

licensee responsible under this section or bureau division rule

3272

for the condition of a race animal if the bureau division

3273

laboratory reports the presence of an impermissible substance in

3274

the animal or its blood, urine, saliva, or any other bodily

3275

fluid, either before a race in which the animal is entered or

3276

after a race the animal has run.

3277

     (c)  If an occupational licensee is summarily suspended

3278

under this section, the bureau division shall offer the licensee

3279

a prompt postsuspension hearing within 72 hours, at which the

3280

bureau division shall produce the laboratory report and

3281

documentation which, on its face, establishes the responsibility

3282

of the occupational licensee. Upon production of the

3283

documentation, the occupational licensee has the burden of

3284

proving his or her lack of responsibility.

3285

     (d)  Any proceeding for administrative action against a

3286

licensee or permittee, other than a proceeding under paragraph

3287

(c), shall be conducted in compliance with chapter 120.

3288

     (4)  A prosecution pursuant to this section for a violation

3289

of this section must be commenced within 2 years after the

3290

violation was committed. Service of an administrative complaint

3291

marks the commencement of administrative action.

3292

     (5) The bureau division shall implement a split-sample

3293

procedure for testing animals under this section.

3294

     (a)  Upon finding a positive drug test result, the

3295

department shall notify the owner or trainer of the results. The

3296

owner may request that each urine and blood sample be split into

3297

a primary sample and a secondary (split) sample. Such splitting

3298

must be accomplished in the laboratory under rules approved by

3299

the bureau division. Custody of both samples must remain with the

3300

bureau division. However, upon request by the affected trainer or

3301

owner of the animal from which the sample was obtained, the

3302

bureau division shall send the split sample to an approved

3303

independent laboratory for analysis. The bureau division shall

3304

establish standards and rules for uniform enforcement and shall

3305

maintain a list of at least five approved independent

3306

laboratories for an owner or trainer to select from in the event

3307

of a positive test sample.

3308

     (b)  If the state laboratory's findings are not confirmed by

3309

the independent laboratory, no further administrative or

3310

disciplinary action under this section may be pursued. The bureau

3311

division may adopt rules identifying substances that diminish in

3312

a blood or urine sample due to passage of time and that must be

3313

taken into account in applying this section.

3314

     (c)  If the independent laboratory confirms the state

3315

laboratory's positive result, or if there is an insufficient

3316

quantity of the secondary (split) sample for confirmation of the

3317

state laboratory's positive result, the bureau division may

3318

commence administrative proceedings as prescribed in this chapter

3319

and consistent with chapter 120. For purposes of this subsection,

3320

the department shall in good faith attempt to obtain a sufficient

3321

quantity of the test fluid to allow both a primary test and a

3322

secondary test to be made.

3323

     (6)(a)  It is the intent of the Legislature that animals

3324

that participate in races in this state on which pari-mutuel

3325

wagering is conducted and animals that are bred and trained in

3326

this state for racing be treated humanely, both on and off

3327

racetracks, throughout the lives of the animals.

3328

     (b) The bureau division shall, by rule, establish the

3329

procedures for euthanizing greyhounds. However, a greyhound may

3330

not be put to death by any means other than by lethal injection

3331

of the drug sodium pentobarbital. A greyhound may not be removed

3332

from this state for the purpose of being destroyed.

3333

     (c)  It is a violation of this chapter for an occupational

3334

licensee to train a greyhound using live or dead animals. A

3335

greyhound may not be taken from this state for the purpose of

3336

being trained through the use of live or dead animals.

3337

     (d)  A conviction of cruelty to animals pursuant to s.

3338

828.12 involving a racing animal constitutes a violation of this

3339

chapter.

3340

     (7)  All moneys recovered for violations of this section

3341

shall be kept in a separate fund to be deposited into the Pari-

3342

mutuel Wagering Trust Fund and shall be used for research

3343

relating to the medication of racing animals. Such recovered

3344

moneys shall be supervised and used by the bureau division to

3345

contract with a reputable college or school of veterinary

3346

medicine or its designee in accordance with this subsection.

3347

     (8)  Under no circumstances may any medication be

3348

administered closer than 24 hours prior to the officially

3349

scheduled post time of a race except as provided for in this

3350

section.

3351

     (a) The bureau division shall adopt rules setting

3352

conditions for the use of furosemide to treat exercise-induced

3353

pulmonary hemorrhage.

3354

     (b) The bureau division shall adopt rules setting

3355

conditions for the use of prednisolone sodium succinate, but

3356

under no circumstances may furosemide or prednisolone sodium

3357

succinate be administered closer than 4 hours prior to the

3358

officially scheduled post time for the race.

3359

     (c) The bureau division shall adopt rules setting

3360

conditions for the use of phenylbutazone and synthetic

3361

corticosteroids; in no case, except as provided in paragraph (b),

3362

shall these substances be given closer than 24 hours prior to the

3363

officially scheduled post time of a race. Oral corticosteroids

3364

are prohibited except when prescribed by a licensed veterinarian

3365

and reported to the bureau division on forms prescribed by the

3366

bureau division.

3367

     (d) Nothing in This section does not shall be interpreted

3368

to prohibit the use of vitamins, minerals, or naturally occurring

3369

substances so long as none exceeds the normal physiological

3370

concentration in a race day specimen.

3371

     (e) The bureau division may, by rule, establish acceptable

3372

levels of permitted medications and shall select the appropriate

3373

biological specimens by which the administration of permitted

3374

medication is monitored.

3375

     (9)(a)  Under no circumstances may any medication be

3376

administered within 24 hours before the officially scheduled post

3377

time of the race except as provided in this section.

3378

     (b) As an exception to this section, if the bureau division

3379

first determines that the use of furosemide, phenylbutazone, or

3380

prednisolone sodium succinate in horses is in the best interest

3381

of racing, the bureau division may adopt rules allowing such use.

3382

Any rules allowing the use of furosemide, phenylbutazone, or

3383

prednisolone sodium succinate in racing must set the conditions

3384

for such use. Under no circumstances may a rule be adopted which

3385

allows the administration of furosemide or prednisolone sodium

3386

succinate within 4 hours before the officially scheduled post

3387

time for the race. Under no circumstances may a rule be adopted

3388

which allows the administration of phenylbutazone or any other

3389

synthetic corticosteroid within 24 hours before the officially

3390

scheduled post time for the race. Any administration of synthetic

3391

corticosteroids is limited to parenteral routes. Oral

3392

administration of synthetic corticosteroids is expressly

3393

prohibited. If this paragraph is unconstitutional, it is

3394

severable from the remainder of this section.

3395

     (c) The bureau division shall, by rule, establish

3396

acceptable levels of permitted medications and shall select the

3397

appropriate biological specimen by which the administration of

3398

permitted medications is monitored.

3399

     (10)(a) The bureau division may conduct a postmortem

3400

examination of any animal that is injured at a permitted

3401

racetrack while in training or in competition and that

3402

subsequently expires or is destroyed. The bureau division may

3403

conduct a postmortem examination of any animal that expires while

3404

housed at a permitted racetrack, association compound, or

3405

licensed kennel or farm. Trainers and owners shall be requested

3406

to comply with this paragraph as a condition of licensure.

3407

     (b) The bureau division may take possession of the animal

3408

upon death for postmortem examination. The bureau division may

3409

submit blood, urine, other bodily fluid specimens, or other

3410

tissue specimens collected during a postmortem examination for

3411

testing by the bureau division laboratory or its designee. Upon

3412

completion of the postmortem examination, the carcass must be

3413

returned to the owner or disposed of at the owner's option.

3414

     (11)  The presence of a prohibited substance in an animal,

3415

found by the bureau division laboratory in a bodily fluid

3416

specimen collected during the postmortem examination of the

3417

animal, which breaks down during a race constitutes a violation

3418

of this section.

3419

     (12)  The cost of postmortem examinations, testing, and

3420

disposal must be borne by the bureau division.

3421

     (13) The bureau division shall adopt rules to implement

3422

this section. The rules may include a classification system for

3423

prohibited substances and a corresponding penalty schedule for

3424

violations.

3425

     (14)  Except as specifically modified by statute or by rules

3426

of the bureau division, the Uniform Classification Guidelines for

3427

Foreign Substances, revised February 14, 1995, as promulgated by

3428

the Association of Racing Commissioners International, Inc., is

3429

hereby adopted by reference as the uniform classification system

3430

for class IV and V medications.

3431

     (15) The bureau division shall utilize only the thin layer

3432

chromatography (TLC) screening process to test for the presence

3433

of class IV and V medications in samples taken from racehorses

3434

except when thresholds of a class IV or class V medication have

3435

been established and are enforced by rule. Once a sample has been

3436

identified as suspicious for a class IV or class V medication by

3437

the TLC screening process, the sample will be sent for

3438

confirmation by and through additional testing methods. All other

3439

medications not classified by rule as a class IV or class V agent

3440

shall be subject to all forms of testing available to the bureau

3441

division.

3442

     (16) The bureau division shall implement by rule medication

3443

levels finalized by the University of Florida developed pursuant

3444

to the Pharmacokinetic and Clearance Study Agreement by and

3445

between the Bureau of Florida Department of Business and

3446

Professional Regulation division of Pari-mutuel Wagering within

3447

the Division of Gambling Oversight of the Department of Gaming

3448

Control and the University of Florida College of Veterinary

3449

Medicine. Research on a drug level is finalized when the

3450

University of Florida College of Veterinary Medicine provides

3451

written notification to the bureau division that it has completed

3452

its research on a particular drug pursuant to the agreement and

3453

when the College of Veterinary Medicine provides a final report

3454

of its findings, conclusions, and recommendations to the bureau

3455

division.

3456

     (17)  The testing medium for phenylbutazone in horses shall

3457

be serum, and the bureau division may collect up to six full 15-

3458

milliliter blood tubes for each horse being sampled.

3459

     Section 60.  Subsection (4) of section 550.2614, Florida

3460

Statutes, is amended to read:

3461

     550.2614  Distribution of certain funds to a horsemen's

3462

association.--

3463

     (4) The bureau division shall adopt rules to facilitate the

3464

orderly transfer of funds in accordance with this section. The

3465

bureau division shall also monitor the membership rolls of the

3466

horsemen's association to ensure that complete, accurate, and

3467

timely listings are maintained for the purposes specified in this

3468

section.

3469

     Section 61.  Subsection (3) of section 550.26165, Florida

3470

Statutes, is amended to read:

3471

     550.26165  Breeders' awards.--

3472

     (3)  Breeders' associations shall submit their plans to the

3473

bureau division at least 60 days before the beginning of the

3474

payment year. The payment year may be a calendar year or any 12-

3475

month period, but once established, the yearly base may not be

3476

changed except for compelling reasons. Once a plan is approved,

3477

the bureau division may not allow the plan to be amended during

3478

the year, except for the most compelling reasons.

3479

     Section 62.  Paragraphs (b) and (d) of subsection (2), and

3480

subsections (3), (4), (5), (7), and (8) of section 550.2625,

3481

Florida Statutes, are amended to read:

3482

     550.2625  Horseracing; minimum purse requirement, Florida

3483

breeders' and owners' awards.--

3484

     (2)  Each permitholder conducting a horserace meet is

3485

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

3486

sum for purses in accordance with the type of race performed.

3487

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

3488

under this chapter must pay to the purse pool from the takeout

3489

withheld a purse requirement that totals an amount not less than

3490

8.25 percent of all contributions to pari-mutuel pools conducted

3491

during the race meet. An amount not less than 7.75 percent of the

3492

total handle shall be paid from this purse pool as purses.

3493

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

3494

on all harness horse races that are subject to the purse

3495

requirement of subparagraph 1., must be available for use to

3496

provide medical, dental, surgical, life, funeral, or disability

3497

insurance benefits for occupational licensees who work at tracks

3498

in this state at which harness horse races are conducted. Such

3499

insurance benefits must be paid from the purse pool specified in

3500

subparagraph 1. An annual plan for payment of insurance benefits

3501

from the purse pool, including qualifications for eligibility,

3502

must be submitted by the Florida Standardbred Breeders and Owners

3503

Association for approval to the bureau division. An annual report

3504

of the implemented plan shall be submitted to the bureau

3505

division. All records of the Florida Standardbred Breeders and

3506

Owners Association concerning the administration of the plan must

3507

be available for audit at the discretion of the bureau division

3508

to determine that the plan has been implemented and administered

3509

as authorized. If the bureau division finds that the Florida

3510

Standardbred Breeders and Owners Association has not complied

3511

with the provisions of this section, the bureau division may

3512

order the association to cease and desist from administering the

3513

plan and shall appoint the bureau division as temporary

3514

administrator of the plan until the bureau division reestablishes

3515

administration of the plan with the association.

3516

     (d) The bureau division shall adopt reasonable rules to

3517

ensure the timely and accurate payment of all amounts withheld by

3518

horserace permitholders regarding the distribution of purses,

3519

owners' awards, and other amounts collected for payment to owners

3520

and breeders. Each permitholder that fails to pay out all moneys

3521

collected for payment to owners and breeders shall, within 10

3522

days after the end of the meet during which the permitholder

3523

underpaid purses, deposit an amount equal to the underpayment

3524

into a separate interest-bearing account to be distributed to

3525

owners and breeders in accordance with bureau division rules.

3526

     (3)  Each horseracing permitholder conducting any

3527

thoroughbred race under this chapter, including any intertrack

3528

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

3529

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

3530

to 0.955 percent on all pari-mutuel pools conducted during any

3531

such race for the payment of breeders', stallion, or special

3532

racing awards as authorized in this chapter. This subsection also

3533

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

3534

taken pursuant to s. 550.3551(3). On any race originating live in

3535

this state which is broadcast out-of-state to any location at

3536

which wagers are accepted pursuant to s. 550.3551(2), the host

3537

track is required to pay 3.475 percent of the gross revenue

3538

derived from such out-of-state broadcasts as breeders', stallion,

3539

or special racing awards. The Florida Thoroughbred Breeders'

3540

Association may is authorized to receive these payments from the

3541

permitholders and make payments of awards earned. The Florida

3542

Thoroughbred Breeders' Association has the right to withhold up

3543

to 10 percent of the permitholder's payments under this section

3544

as a fee for administering the payments of awards and for general

3545

promotion of the industry. The permitholder shall remit these

3546

payments to the Florida Thoroughbred Breeders' Association by the

3547

5th day of each calendar month for such sums accruing during the

3548

preceding calendar month and shall report such payments to the

3549

bureau division as prescribed by the bureau division. With the

3550

exception of the 10-percent fee, the moneys paid by the

3551

permitholders shall be maintained in a separate, interest-bearing

3552

account, and such payments together with any interest earned

3553

shall be used exclusively for the payment of breeders', stallion,

3554

or special racing awards in accordance with the following

3555

provisions:

3556

     (a)  The breeder of each Florida-bred thoroughbred horse

3557

winning a thoroughbred horse race is entitled to an award of up

3558

to, but not exceeding, 20 percent of the announced gross purse,

3559

including nomination fees, eligibility fees, starting fees,

3560

supplementary fees, and moneys added by the sponsor of the race.

3561

     (b)  The owner or owners of the sire of a Florida-bred

3562

thoroughbred horse that wins a stakes race is entitled to a

3563

stallion award of up to, but not exceeding, 20 percent of the

3564

announced gross purse, including nomination fees, eligibility

3565

fees, starting fees, supplementary fees, and moneys added by the

3566

sponsor of the race.

3567

     (c)  The owners of thoroughbred horses participating in

3568

thoroughbred stakes races, nonstakes races, or both may receive a

3569

special racing award in accordance with the agreement established

3570

pursuant to s. 550.26165(1).

3571

     (d)  In order for a breeder of a Florida-bred thoroughbred

3572

horse to be eligible to receive a breeder's award, the horse must

3573

have been registered as a Florida-bred horse with the Florida

3574

Thoroughbred Breeders' Association, and the Jockey Club

3575

certificate for the horse must show that it has been duly

3576

registered as a Florida-bred horse as evidenced by the seal and

3577

proper serial number of the Florida Thoroughbred Breeders'

3578

Association registry. The Florida Thoroughbred Breeders'

3579

Association shall be permitted to charge the registrant a

3580

reasonable fee for this verification and registration.

3581

     (e)  In order for an owner of the sire of a thoroughbred

3582

horse winning a stakes race to be eligible to receive a stallion

3583

award, the stallion must have been registered with the Florida

3584

Thoroughbred Breeders' Association, and the breeding of the

3585

registered Florida-bred horse must have occurred in this state.

3586

The stallion must be standing permanently in this state during

3587

the period of time between February 1 and June 15 of each year

3588

or, if the stallion is dead, must have stood permanently in this

3589

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

3590

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

3591

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

3592

reason, other than exclusively for prescribed medical treatment,

3593

as approved by the Florida Thoroughbred Breeders' Association,

3594

renders the owner or owners of the stallion ineligible to receive

3595

a stallion award under any circumstances for offspring sired

3596

prior to removal; however, if a removed stallion is returned to

3597

this state, all offspring sired subsequent to the return make the

3598

owner or owners of the stallion eligible for the stallion award

3599

but only for those offspring sired subsequent to such return to

3600

this state. The Florida Thoroughbred Breeders' Association shall

3601

maintain complete records showing the date the stallion arrived

3602

in this state for the first time, whether or not the stallion

3603

remained in the state permanently, the location of the stallion,

3604

and whether the stallion is still standing in this state and

3605

complete records showing awards earned, received, and

3606

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

3607

breeder a reasonable fee for this service.

3608

     (f)  A permitholder conducting a thoroughbred horse race

3609

under the provisions of this chapter shall, within 30 days after

3610

the end of the race meet during which the race is conducted,

3611

certify to the Florida Thoroughbred Breeders' Association such

3612

information relating to the thoroughbred horses winning a stakes

3613

or other horserace at the meet as may be required to determine

3614

the eligibility for payment of breeders', stallion, and special

3615

racing awards.

3616

     (g)  The Florida Thoroughbred Breeders' Association shall

3617

maintain complete records showing the starters and winners in all

3618

races conducted at thoroughbred tracks in this state; shall

3619

maintain complete records showing awards earned, received, and

3620

distributed; and may charge the owner, owners, or breeder a

3621

reasonable fee for this service.

3622

     (h)  The Florida Thoroughbred Breeders' Association shall

3623

annually establish a uniform rate and procedure for the payment

3624

of breeders' and stallion awards and shall make breeders' and

3625

stallion award payments in strict compliance with the established

3626

uniform rate and procedure plan. The plan may set a cap on

3627

winnings and may limit, exclude, or defer payments to certain

3628

classes of races, such as the Florida stallion stakes races, in

3629

order to assure that there are adequate revenues to meet the

3630

proposed uniform rate. Such plan must include proposals for the

3631

general promotion of the industry. Priority shall be placed upon

3632

imposing such restrictions in lieu of allowing the uniform rate

3633

to be less than 15 percent of the total purse payment. The

3634

uniform rate and procedure plan must be approved by the bureau

3635

division before implementation. In the absence of an approved

3636

plan and procedure, the authorized rate for breeders' and

3637

stallion awards is 15 percent of the announced gross purse for

3638

each race. Such purse must include nomination fees, eligibility

3639

fees, starting fees, supplementary fees, and moneys added by the

3640

sponsor of the race. If the funds in the account for payment of

3641

breeders' and stallion awards are not sufficient to meet all

3642

earned breeders' and stallion awards, those breeders and stallion

3643

owners not receiving payments have first call on any subsequent

3644

receipts in that or any subsequent year.

3645

     (i)  The Florida Thoroughbred Breeders' Association shall

3646

keep accurate records showing receipts and disbursements of such

3647

payments and shall annually file a full and complete report to

3648

the bureau division showing such receipts and disbursements and

3649

the sums withheld for administration. The bureau division may

3650

audit the records and accounts of the Florida Thoroughbred

3651

Breeders' Association to determine that payments have been made

3652

to eligible breeders and stallion owners in accordance with this

3653

section.

3654

     (j) If the bureau division finds that the Florida

3655

Thoroughbred Breeders' Association has not complied with any

3656

provision of this section, the bureau division may order the

3657

association to cease and desist from receiving funds and

3658

administering funds received under this section. If the bureau

3659

division enters such an order, the permitholder shall make the

3660

payments authorized in this section to the bureau division for

3661

deposit into the Pari-mutuel Wagering Trust Fund; and any funds

3662

in the Florida Thoroughbred Breeders' Association account shall

3663

be immediately paid to the Bureau division of Pari-mutuel

3664

Wagering for deposit to the Pari-mutuel Wagering Trust Fund. The

3665

bureau division shall authorize payment from these funds to any

3666

breeder or stallion owner entitled to an award that has not been

3667

previously paid by the Florida Thoroughbred Breeders' Association

3668

in accordance with the applicable rate.

3669

     (4)  Each permitholder conducting a harness horse race under

3670

this chapter shall pay a sum equal to the breaks on all pari-

3671

mutuel pools conducted during that race for the payment of

3672

breeders' awards, stallion awards, and stallion stakes and for

3673

additional expenditures as authorized in this section. The

3674

Florida Standardbred Breeders and Owners Association may is

3675

authorized to receive these payments from the permitholders and

3676

make payments as authorized in this subsection. The Florida

3677

Standardbred Breeders and Owners Association has the right to

3678

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

3679

this section and under s. 550.2633 as a fee for administering

3680

these payments. The permitholder shall remit these payments to

3681

the Florida Standardbred Breeders and Owners Association by the

3682

5th day of each calendar month for such sums accruing during the

3683

preceding calendar month and shall report such payments to the

3684

bureau division as prescribed by the bureau division. With the

3685

exception of the 10-percent fee for administering the payments

3686

and the use of the moneys authorized by paragraph (j), the moneys

3687

paid by the permitholders shall be maintained in a separate,

3688

interest-bearing account; and such payments together with any

3689

interest earned shall be allocated for the payment of breeders'

3690

awards, stallion awards, stallion stakes, additional purses, and

3691

prizes for, and the general promotion of owning and breeding of,

3692

Florida-bred standardbred horses. Payment of breeders' awards and

3693

stallion awards shall be made in accordance with the following

3694

provisions:

3695

     (a)  The breeder of each Florida-bred standardbred horse

3696

winning a harness horse race is entitled to an award of up to,

3697

but not exceeding, 20 percent of the announced gross purse,

3698

including nomination fees, eligibility fees, starting fees,

3699

supplementary fees, and moneys added by the sponsor of the race.

3700

     (b)  The owner or owners of the sire of a Florida-bred

3701

standardbred horse that wins a stakes race is entitled to a

3702

stallion award of up to, but not exceeding, 20 percent of the

3703

announced gross purse, including nomination fees, eligibility

3704

fees, starting fees, supplementary fees, and moneys added by the

3705

sponsor of the race.

3706

     (c)  In order for a breeder of a Florida-bred standardbred

3707

horse to be eligible to receive a breeder's award, the horse

3708

winning the race must have been registered as a Florida-bred

3709

horse with the Florida Standardbred Breeders and Owners

3710

Association and a registration certificate under seal for the

3711

winning horse must show that the winner has been duly registered

3712

as a Florida-bred horse as evidenced by the seal and proper

3713

serial number of the United States Trotting Association registry.

3714

The Florida Standardbred Breeders and Owners Association shall be

3715

permitted to charge the registrant a reasonable fee for this

3716

verification and registration.

3717

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

3718

horse winning a stakes race to be eligible to receive a stallion

3719

award, the stallion must have been registered with the Florida

3720

Standardbred Breeders and Owners Association, and the breeding of

3721

the registered Florida-bred horse must have occurred in this

3722

state. The stallion must be standing permanently in this state

3723

or, if the stallion is dead, must have stood permanently in this

3724

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

3725

its death. The removal of a stallion from this state for any

3726

reason, other than exclusively for prescribed medical treatment,

3727

renders the owner or the owners of the stallion ineligible to

3728

receive a stallion award under any circumstances for offspring

3729

sired prior to removal; however, if a removed stallion is

3730

returned to this state, all offspring sired subsequent to the

3731

return make the owner or owners of the stallion eligible for the

3732

stallion award but only for those offspring sired subsequent to

3733

such return to this state. The Florida Standardbred Breeders and

3734

Owners Association shall maintain complete records showing the

3735

date the stallion arrived in this state for the first time,

3736

whether or not the stallion remained in the state permanently,

3737

the location of the stallion, and whether the stallion is still

3738

standing in this state and complete records showing awards

3739

earned, received, and distributed. The association may charge the

3740

owner, owners, or breeder a reasonable fee for this service.

3741

     (e)  A permitholder conducting a harness horse race under

3742

this chapter shall, within 30 days after the end of the race meet

3743

during which the race is conducted, certify to the Florida

3744

Standardbred Breeders and Owners Association such information

3745

relating to the horse winning a stakes or other horserace at the

3746

meet as may be required to determine the eligibility for payment

3747

of breeders' awards and stallion awards.

3748

     (f)  The Florida Standardbred Breeders and Owners

3749

Association shall maintain complete records showing the starters

3750

and winners in all races conducted at harness horse racetracks in

3751

this state; shall maintain complete records showing awards

3752

earned, received, and distributed; and may charge the owner,

3753

owners, or breeder a reasonable fee for this service.

3754

     (g)  The Florida Standardbred Breeders and Owners

3755

Association shall annually establish a uniform rate and procedure

3756

for the payment of breeders' awards, stallion awards, stallion

3757

stakes, additional purses, and prizes for, and for the general

3758

promotion of owning and breeding of, Florida-bred standardbred

3759

horses and shall make award payments and allocations in strict

3760

compliance with the established uniform rate and procedure. The

3761

plan may set a cap on winnings, and may limit, exclude, or defer

3762

payments to certain classes of races, such as the Florida

3763

Breeders' stakes races, in order to assure that there are

3764

adequate revenues to meet the proposed uniform rate. Priority

3765

shall be placed on imposing such restrictions in lieu of allowing

3766

the uniform rate allocated to payment of breeder and stallion

3767

awards to be less than 10 percent of the total purse payment. The

3768

uniform rate and procedure must be approved by the bureau

3769

division before implementation. In the absence of an approved

3770

plan and procedure, the authorized rate for breeders' and

3771

stallion awards is 10 percent of the announced gross purse for

3772

each race. Such purse must include nomination fees, eligibility

3773

fees, starting fees, supplementary fees, and moneys added by the

3774

sponsor of the race. If the funds in the account for payment of

3775

breeders' and stallion awards are not sufficient to meet all

3776

earned breeders' and stallion awards, those breeders and stallion

3777

owners not receiving payments have first call on any subsequent

3778

receipts in that or any subsequent year.

3779

     (h)  The Florida Standardbred Breeders and Owners

3780

Association shall keep accurate records showing receipts and

3781

disbursements of such payments and shall annually file a full and

3782

complete report to the bureau division showing such receipts and

3783

disbursements and the sums withheld for administration. The

3784

bureau division may audit the records and accounts of the Florida

3785

Standardbred Breeders and Owners Association to determine that

3786

payments have been made to eligible breeders, stallion owners,

3787

and owners of Florida-bred standardbred horses in accordance with

3788

this section.

3789

     (i) If the bureau division finds that the Florida

3790

Standardbred Breeders and Owners Association has not complied

3791

with any provision of this section, the bureau division may order

3792

the association to cease and desist from receiving funds and

3793

administering funds received under this section and under s.

3794

550.2633. If the bureau division enters such an order, the

3795

permitholder shall make the payments authorized in this section

3796

and s. 550.2633 to the bureau division for deposit into the Pari-

3797

mutuel Wagering Trust Fund; and any funds in the Florida

3798

Standardbred Breeders and Owners Association account shall be

3799

immediately paid to the bureau division for deposit to the Pari-

3800

mutuel Wagering Trust Fund. The bureau division shall authorize

3801

payment from these funds to any breeder, stallion owner, or owner

3802

of a Florida-bred standardbred horse entitled to an award that

3803

has not been previously paid by the Florida Standardbred Breeders

3804

and Owners Association in accordance with the applicable rate.

3805

     (j)  The board of directors of the Florida Standardbred

3806

Breeders and Owners Association may authorize the release of up

3807

to 25 percent of the funds available for breeders' awards,

3808

stallion awards, stallion stakes, additional purses, and prizes

3809

for, and for the general promotion of owning and breeding of,

3810

Florida-bred standardbred horses to be used for purses for, and

3811

promotion of, Florida-bred standardbred horses at race meetings

3812

at which there is no pari-mutuel wagering unless, and to the

3813

extent that, such release would render the funds available for

3814

such awards insufficient to pay the breeders' and stallion awards

3815

earned pursuant to the annual plan of the association. Any such

3816

funds so released and used for purses are not considered to be an

3817

"announced gross purse" as that term is used in paragraphs (a)

3818

and (b), and no breeders' or stallion awards, stallion stakes, or

3819

owner awards are required to be paid for standardbred horses

3820

winning races in meetings at which there is no pari-mutuel

3821

wagering. The amount of purses to be paid from funds so released

3822

and the meets eligible to receive such funds for purses must be

3823

approved by the board of directors of the Florida Standardbred

3824

Breeders and Owners Association.

3825

     (5)(a)  Except as provided in subsections (7) and (8), each

3826

permitholder conducting a quarter horse race meet under this

3827

chapter shall pay a sum equal to the breaks plus a sum equal to 1

3828

percent of all pari-mutuel pools conducted during that race for

3829

supplementing and augmenting purses and prizes and for the

3830

general promotion of owning and breeding of racing quarter horses

3831

in this state as authorized in this section. The Florida Quarter

3832

Horse Breeders and Owners Association may is authorized to

3833

receive these payments from the permitholders and make payments

3834

as authorized in this subsection. The Florida Quarter Horse

3835

Breeders and Owners Association, Inc., referred to in this

3836

chapter as the Florida Quarter Horse Breeders and Owners

3837

Association, has the right to withhold up to 10 percent of the

3838

permitholder's payments under this section and under s. 550.2633

3839

as a fee for administering these payments. The permitholder shall

3840

remit these payments to the Florida Quarter Horse Breeders and

3841

Owners Association by the 5th day of each calendar month for such

3842

sums accruing during the preceding calendar month and shall

3843

report such payments to the bureau division as prescribed by the

3844

bureau division. With the exception of the 5-percent fee for

3845

administering the payments, the moneys paid by the permitholders

3846

shall be maintained in a separate, interest-bearing account.

3847

     (b)  The Florida Quarter Horse Breeders and Owners

3848

Association shall use these funds solely for supplementing and

3849

augmenting purses and prizes and for the general promotion of

3850

owning and breeding of racing quarter horses in this state and

3851

for general administration of the Florida Quarter Horse Breeders

3852

and Owners Association, Inc., in this state.

3853

     (c)  In order for an owner or breeder of a Florida-bred

3854

quarter horse to be eligible to receive an award, the horse

3855

winning a race must have been registered as a Florida-bred horse

3856

with the Florida Quarter Horse Breeders and Owners Association

3857

and a registration certificate under seal for the winning horse

3858

must show that the winning horse has been duly registered prior

3859

to the race as a Florida-bred horse as evidenced by the seal and

3860

proper serial number of the Florida Quarter Horse Breeders and

3861

Owners Association registry. The Department of Agriculture and

3862

Consumer Services may is authorized to assist the association in

3863

maintaining this registry. The Florida Quarter Horse Breeders and

3864

Owners Association may charge the registrant a reasonable fee for

3865

this verification and registration. Any person who registers

3866

unqualified horses or misrepresents information in any way shall

3867

be denied any future participation in breeders' awards, and all

3868

horses misrepresented will no longer be deemed to be Florida-

3869

bred.

3870

     (d)  A permitholder conducting a quarter horse race under a

3871

quarter horse permit under this chapter shall, within 30 days

3872

after the end of the race meet during which the race is

3873

conducted, certify to the Florida Quarter Horse Breeders and

3874

Owners Association such information relating to the horse winning

3875

a stakes or other horserace at the meet as may be required to

3876

determine the eligibility for payment of breeders' awards under

3877

this section.

3878

     (e)  The Florida Quarter Horse Breeders and Owners

3879

Association shall maintain complete records showing the starters

3880

and winners in all quarter horse races conducted under quarter

3881

horse permits in this state; shall maintain complete records

3882

showing awards earned, received, and distributed; and may charge

3883

the owner, owners, or breeder a reasonable fee for this service.

3884

     (f)  The Florida Quarter Horse Breeders and Owners

3885

Association shall keep accurate records showing receipts and

3886

disbursements of payments made under this section and shall

3887

annually file a full and complete report to the bureau division

3888

showing such receipts and disbursements and the sums withheld for

3889

administration. The bureau division may audit the records and

3890

accounts of the Florida Quarter Horse Breeders and Owners

3891

Association to determine that payments have been made in

3892

accordance with this section.

3893

     (g)  The Florida Quarter Horse Breeders and Owners

3894

Association shall annually establish a plan for supplementing and

3895

augmenting purses and prizes and for the general promotion of

3896

owning and breeding Florida-bred racing quarter horses and shall

3897

make award payments and allocations in strict compliance with the

3898

annual plan. The annual plan must be approved by the bureau

3899

division before implementation. If the funds in the account for

3900

payment of purses and prizes are not sufficient to meet all

3901

purses and prizes to be awarded, those breeders and owners not

3902

receiving payments have first call on any subsequent receipts in

3903

that or any subsequent year.

3904

     (h) If the bureau division finds that the Florida Quarter

3905

Horse Breeders and Owners Association has not complied with any

3906

provision of this section, the bureau division may order the

3907

association to cease and desist from receiving funds and

3908

administering funds received under this section and s. 550.2633.

3909

If the bureau division enters such an order, the permitholder

3910

shall make the payments authorized in this section and s.

3911

550.2633 to the bureau division for deposit into the Pari-mutuel

3912

Wagering Trust Fund, and any funds in the Florida Quarter Horse

3913

Breeders and Owners Association account shall be immediately paid

3914

to the bureau division for deposit to the Pari-mutuel Wagering

3915

Trust Fund. The bureau division shall authorize payment from

3916

these funds to any breeder or owner of a quarter horse entitled

3917

to an award that has not been previously paid by the Florida

3918

Quarter Horse Breeders and Owners Association in accordance with

3919

this section.

3920

     (7)(a)  Each permitholder that conducts race meets under

3921

this chapter and runs Appaloosa races shall pay to the bureau

3922

division a sum equal to the breaks plus a sum equal to 1 percent

3923

of the total contributions to each pari-mutuel pool conducted on

3924

each Appaloosa race. The payments shall be remitted to the bureau

3925

division by the 5th day of each calendar month for sums accruing

3926

during the preceding calendar month.

3927

     (b) The bureau division shall deposit these collections to

3928

the credit of the General Inspection Trust Fund in a special

3929

account to be known as the "Florida Appaloosa Racing Promotion

3930

Account." The Department of Agriculture and Consumer Services

3931

shall administer the funds and adopt suitable and reasonable

3932

rules for the administration thereof. The moneys in the Florida

3933

Appaloosa Racing Promotion Account shall be allocated solely for

3934

supplementing and augmenting purses and prizes and for the

3935

general promotion of owning and breeding of racing Appaloosas in

3936

this state; and the moneys may not be used to defray any expense

3937

of the Department of Agriculture and Consumer Services in the

3938

administration of this chapter.

3939

     (8)(a)  Each permitholder that conducts race meets under

3940

this chapter and runs Arabian horse races shall pay to the bureau

3941

division a sum equal to the breaks plus a sum equal to 1 percent

3942

of the total contributions to each pari-mutuel pool conducted on

3943

each Arabian horse race. The payments shall be remitted to the

3944

bureau division by the 5th day of each calendar month for sums

3945

accruing during the preceding calendar month.

3946

     (b) The bureau division shall deposit these collections to

3947

the credit of the General Inspection Trust Fund in a special

3948

account to be known as the "Florida Arabian Horse Racing

3949

Promotion Account." The Department of Agriculture and Consumer

3950

Services shall administer the funds and adopt suitable and

3951

reasonable rules for the administration thereof. The moneys in

3952

the Florida Arabian Horse Racing Promotion Account shall be

3953

allocated solely for supplementing and augmenting purses and

3954

prizes and for the general promotion of owning and breeding of

3955

racing Arabian horses in this state; and the moneys may not be

3956

used to defray any expense of the Department of Agriculture and

3957

Consumer Services in the administration of this chapter, except

3958

that the moneys generated by Arabian horse registration fees

3959

received pursuant to s. 570.382 may be used as provided in

3960

paragraph (5)(b) of that section.

3961

     Section 63.  Section 550.26352, Florida Statutes, is amended

3962

to read:

3963

     550.26352  Breeders' Cup Meet; pools authorized; conflicts;

3964

taxes; credits; transmission of races; rules; application.--

3965

     (1)  Notwithstanding any provision of this chapter to the

3966

contrary, there is hereby created a special thoroughbred race

3967

meet which shall be designated as the "Breeders' Cup Meet." The

3968

Breeders' Cup Meet shall be conducted at the facility of the

3969

Florida permitholder selected by Breeders' Cup Limited to conduct

3970

the Breeders' Cup Meet. The Breeders' Cup Meet shall consist of 3

3971

days: the day on which the Breeders' Cup races are conducted, the

3972

preceding day, and the subsequent day. Upon the selection of the

3973

Florida permitholder as host for the Breeders' Cup Meet and

3974

application by the selected permitholder, the bureau division

3975

shall issue a license to the selected permitholder to operate the

3976

Breeders' Cup Meet. Notwithstanding s. 550.09515(2)(a), the

3977

Breeders' Cup Meet may be conducted on dates which the selected

3978

permitholder is not otherwise authorized to conduct a race meet.

3979

     (2)  The permitholder conducting the Breeders' Cup Meet is

3980

specifically authorized to create pari-mutuel pools during the

3981

Breeders' Cup Meet by accepting pari-mutuel wagers on the

3982

thoroughbred horse races run during said meet.

3983

     (3)  If the permitholder conducting the Breeders' Cup Meet

3984

is located within 35 miles of one or more permitholders scheduled

3985

to conduct a thoroughbred race meet on any of the 3 days of the

3986

Breeders' Cup Meet, then operation on any of those 3 days by the

3987

other permitholders is prohibited. As compensation for the loss

3988

of racing days caused thereby, such operating permitholders shall

3989

receive a credit against the taxes otherwise due and payable to

3990

the state under ss. 550.0951 and 550.09515. This credit shall be

3991

in an amount equal to the operating loss determined to have been

3992

suffered by the operating permitholders as a result of not

3993

operating on the prohibited racing days, but shall not exceed a

3994

total of $950,000. The determination of the amount to be credited

3995

shall be made by the bureau division upon application by the

3996

operating permitholder. The tax credits provided in this

3997

subsection shall not be available unless an operating

3998

permitholder is required to close a bona fide meet consisting in

3999

part of no fewer than 10 scheduled performances in the 15 days

4000

immediately preceding or 10 scheduled performances in the 15 days

4001

immediately following the Breeders' Cup Meet. Such tax credit

4002

shall be in lieu of any other compensation or consideration for

4003

the loss of racing days. There shall be no replacement or makeup

4004

of any lost racing days.

4005

     (4)  Notwithstanding any provision of ss. 550.0951 and

4006

550.09515, the permitholder conducting the Breeders' Cup Meet

4007

shall pay no taxes on the handle included within the pari-mutuel

4008

pools of said permitholder during the Breeders' Cup Meet.

4009

     (5)  The permitholder conducting the Breeders' Cup Meet

4010

shall receive a credit against the taxes otherwise due and

4011

payable to the state under ss. 550.0951 and 550.09515 generated

4012

during said permitholder's next ensuing regular thoroughbred race

4013

meet. This credit shall be in an amount not to exceed $950,000

4014

and shall be utilized by the permitholder to pay the purses

4015

offered by the permitholder during the Breeders' Cup Meet in

4016

excess of the purses which the permitholder is otherwise required

4017

by law to pay. The amount to be credited shall be determined by

4018

the bureau division upon application of the permitholder which is

4019

subject to audit by the bureau division.

4020

     (6)  The permitholder conducting the Breeders' Cup Meet

4021

shall receive a credit against the taxes otherwise due and

4022

payable to the state under ss. 550.0951 and 550.09515 generated

4023

during said permitholder's next ensuing regular thoroughbred race

4024

meet. This credit shall be in an amount not to exceed $950,000

4025

and shall be utilized by the permitholder for such capital

4026

improvements and extraordinary expenses as may be necessary for

4027

operation of the Breeders' Cup Meet. The amount to be credited

4028

shall be determined by the bureau division upon application of

4029

the permitholder which is subject to audit by the bureau

4030

division.

4031

     (7)  The permitholder conducting the Breeders' Cup Meet

4032

shall be exempt from the payment of purses and other payments to

4033

horsemen on all on-track, intertrack, interstate, and

4034

international wagers or rights fees or payments arising therefrom

4035

for all races for which the purse is paid or supplied by

4036

Breeders' Cup Limited. The permitholder conducting the Breeders'

4037

Cup Meet shall not, however, be exempt from breeders' awards

4038

payments for on-track and intertrack wagers as provided in ss.

4039

550.2625(3) and 550.625(2)(a) for races in which the purse is

4040

paid or supplied by Breeders' Cup Limited.

4041

     (8)(a)  Pursuant to s. 550.3551(2), the permitholder

4042

conducting the Breeders' Cup Meet may is authorized to transmit

4043

broadcasts of the races conducted during the Breeders' Cup Meet

4044

to locations outside of this state for wagering purposes. The

4045

bureau division may approve broadcasts to pari-mutuel

4046

permitholders and other betting systems authorized under the laws

4047

of any other state or country. Wagers accepted by any out-of-

4048

state pari-mutuel permitholder or betting system on any races

4049

broadcast under this section may be, but are not required to be,

4050

commingled with the pari-mutuel pools of the permitholder

4051

conducting the Breeders' Cup Meet. The calculation of any payoff

4052

on national pari-mutuel pools with commingled wagers may be

4053

performed by the permitholder's totalisator contractor at a

4054

location outside of this state. Pool amounts from wagers placed

4055

at pari-mutuel facilities or other betting systems in foreign

4056

countries before being commingled with the pari-mutuel pool of

4057

the Florida permitholder conducting the Breeders' Cup Meet shall

4058

be calculated by the totalisator contractor and transferred to

4059

the commingled pool in United States currency in cycles

4060

customarily used by the permitholder. Pool amounts from wagers

4061

placed at any foreign pari-mutuel facility or other betting

4062

system shall not be commingled with a Florida pool until a

4063

determination is made by the bureau division that the technology

4064

utilized by the totalisator contractor is adequate to assure

4065

commingled pools will result in the calculation of accurate

4066

payoffs to Florida bettors. Any totalisator contractor at a

4067

location outside of this state shall comply with the provisions

4068

of s. 550.495 relating to totalisator licensing.

4069

     (b) The permitholder conducting the Breeders' Cup Meet may

4070

is authorized to transmit broadcasts of the races conducted

4071

during the Breeders' Cup Meet to other pari-mutuel facilities

4072

located in this state for wagering purposes; however, the

4073

permitholder conducting the Breeders' Cup Meet shall not be

4074

required to transmit broadcasts to any pari-mutuel facility

4075

located within 25 miles of the facility at which the Breeders'

4076

Cup Meet is conducted.

4077

     (9)  The exemption from the tax credits provided in

4078

subsections (5) and (6) shall not be granted and shall not be

4079

claimed by the permitholder until an audit is completed by the

4080

bureau division. The bureau division is required to complete the

4081

audit within 30 days of receipt of the necessary documentation

4082

from the permitholder to verify the permitholder's claim for tax

4083

credits. If the documentation submitted by the permitholder is

4084

incomplete or is insufficient to document the permitholder's

4085

claim for tax credits, the bureau division may request such

4086

additional documentation as is necessary to complete the audit.

4087

Upon receipt of the bureau division's written request for

4088

additional documentation, the 30-day time limitation will

4089

commence anew.

4090

     (10) The bureau may division is authorized to adopt such

4091

rules as are necessary to facilitate the conduct of the Breeders'

4092

Cup Meet as authorized in this section. Included within this

4093

grant of authority shall be the adoption or waiver of rules

4094

regarding the overall conduct of racing during the Breeders' Cup

4095

Meet so as to ensure the integrity of the races, licensing for

4096

all participants, special stabling and training requirements for

4097

foreign horses, commingling of pari-mutuel pools, and audit

4098

requirements for tax credits and other benefits.

4099

     (11) Any dispute between the bureau division and any

4100

permitholder regarding the tax credits authorized under

4101

subsection (3), subsection (5), or subsection (6) shall be

4102

determined by a hearing officer of the Bureau division of

4103

Administrative Hearings under the provisions of s. 120.57(1).

4104

     (12)  The provisions of this section shall prevail over any

4105

conflicting provisions of this chapter.

4106

     Section 64.  Subsections (1), (5), (6), and (8) of section

4107

550.2704, Florida Statutes, are amended to read:

4108

     550.2704  Jai Alai Tournament of Champions Meet.--

4109

     (1)  Notwithstanding any provision of this chapter, there is

4110

hereby created a special jai alai meet which shall be designated

4111

as the "Jai Alai Tournament of Champions Meet" and which shall be

4112

hosted by the Florida jai alai permitholders selected by the

4113

National Association of Jai Alai Frontons, Inc., to conduct such

4114

meet. The meet shall consist of three qualifying performances and

4115

a final performance, each of which is to be conducted on

4116

different days. Upon the selection of the Florida permitholders

4117

for the meet, and upon application by the selected permitholders,

4118

the Bureau division of Pari-mutuel Wagering shall issue a license

4119

to each of the selected permitholders to operate the meet. The

4120

meet may be conducted during a season in which the permitholders

4121

selected to conduct the meet are not otherwise authorized to

4122

conduct a meet. Notwithstanding anything herein to the contrary,

4123

any Florida permitholder who is to conduct a performance which is

4124

a part of the Jai Alai Tournament of Champions Meet shall not be

4125

required to apply for the license for said meet if it is to be

4126

run during the regular season for which such permitholder has a

4127

license.

4128

     (5)  In addition to the credit authorized in subsection (4),

4129

the Jai Alai Tournament of Champions Meet permitholders shall

4130

receive a credit against the taxes, otherwise due and payable

4131

under s. 550.0951 or s. 550.09511, generated during said

4132

permitholders' current regular meet, in an amount not to exceed

4133

the aggregate amount of $150,000, which shall be prorated equally

4134

between the permitholders, and shall be utilized by the

4135

permitholders for such capital improvements and extraordinary

4136

expenses, including marketing expenses, as may be necessary for

4137

the operation of the meet. The determination of the amount to be

4138

credited shall be made by the bureau division upon application of

4139

said permitholders.

4140

     (6)  The permitholder shall be entitled to said

4141

permitholder's pro rata share of the $150,000 tax credit provided

4142

in subsection (5) without having to make application, so long as

4143

appropriate documentation to substantiate said expenditures

4144

thereunder is provided to the bureau division within 30 days

4145

following said Jai Alai Tournament of Champions Meet.

4146

     (8) The bureau may division is authorized to adopt such

4147

rules as are necessary to facilitate the conduct of the Jai Alai

4148

Tournament of Champions Meet as authorized in this section.

4149

Included within this grant of authority shall be the adoption of

4150

rules regarding the overall conduct of the tournament so as to

4151

ensure the integrity of the event, licensing for participants,

4152

commingling of pari-mutuel pools, and audit requirements for tax

4153

credits and exemptions.

4154

     Section 65.  Subsections (1), (2), (5), and paragraph (a) of

4155

subsection (7) of section 550.334, Florida Statutes, are amended

4156

to read:

4157

     550.334  Quarter horse racing; substitutions.--

4158

     (1)  Subject to all the applicable provisions of this

4159

chapter, any person who possesses the qualifications prescribed

4160

in this chapter may apply to the bureau division for a permit to

4161

conduct quarter horse race meetings and racing under this

4162

chapter. The applicant must demonstrate that the location or

4163

locations where the permit will be used are available for such

4164

use and that she or he has the financial ability to satisfy the

4165

reasonably anticipated operational expenses of the first racing

4166

year following final issuance of the permit. If the racing

4167

facility is already built, the application must contain a

4168

statement, with reasonable supporting evidence, that the permit

4169

will be used for quarter horse racing within 1 year after the

4170

date on which it is granted; if the facility is not already

4171

built, the application must contain a statement, with reasonable

4172

supporting evidence, that substantial construction will be

4173

started within 1 year after the issuance of the permit. After

4174

receipt of an application, the bureau division shall convene to

4175

consider and act upon permits applied for. The bureau division

4176

shall disapprove an application if it fails to meet the

4177

requirements of this chapter. Upon each application filed and

4178

approved, a permit shall be issued setting forth the name of the

4179

applicant and a statement showing qualifications of the applicant

4180

to conduct racing under this chapter. If a favorable referendum

4181

on a pari-mutuel facility has not been held previously within the

4182

county, then, before a quarter horse permit may be issued by the

4183

bureau division, a referendum ratified by a majority of the

4184

electors in the county is required on the question of allowing

4185

quarter horse races within that county.

4186

     (2)  After a quarter horse racing permit has been granted by

4187

the bureau division, the department shall grant to the lawful

4188

holder of such permit, subject to the conditions of this section,

4189

a license to conduct quarter horse racing under this chapter; and

4190

the bureau division shall fix annually the time when, place

4191

where, and number of days upon which racing may be conducted by

4192

such quarter horse racing permitholder. After the first license

4193

has been issued to the holder of a permit for quarter horse

4194

racing, all subsequent annual applications for a license by a

4195

permitholder must be accompanied by proof, in such form as the

4196

bureau division requires, that the permitholder still possesses

4197

all the qualifications prescribed by this chapter. The bureau

4198

division may revoke any permit or license issued under this

4199

section upon the willful violation by the licensee of any

4200

provision of this chapter or any rule adopted by the bureau

4201

division under this chapter. The bureau division shall revoke any

4202

quarter horse permit under which no live racing has ever been

4203

conducted before July 7, 1990, for failure to conduct a horse

4204

meet pursuant to the license issued where a full schedule of

4205

horseracing has not been conducted for a period of 18 months

4206

commencing on October 1, 1990, unless the permitholder has

4207

commenced construction on a facility at which a full schedule of

4208

live racing could be conducted as approved by the bureau

4209

division. "Commenced construction" means initiation of and

4210

continuous activities beyond site preparation associated with

4211

erecting or modifying a horseracing facility, including

4212

procurement of a building permit applying the use of approved

4213

construction documents, proof of an executed owner/contractor

4214

agreement or an irrevocable or binding forced account, and actual

4215

undertaking of foundation forming with steel installation and

4216

concrete placing. The 18-month period shall be extended by the

4217

bureau division, to the extent that the applicant demonstrates to

4218

the satisfaction of the bureau division that good faith

4219

commencement of the construction of the facility is being delayed

4220

by litigation or by governmental action or inaction with respect

4221

to regulations or permitting precluding commencement of the

4222

construction of the facility.

4223

     (5)  Quarter horses participating in such races must be duly

4224

registered by the American Quarter Horse Association, and before

4225

each race such horses must be examined and declared in fit

4226

condition by a qualified person designated by the bureau

4227

division.

4228

     (7)(a)  Any quarter horse racing permitholder operating

4229

under a valid permit issued by the bureau may division is

4230

authorized to substitute races of other breeds of horses, except

4231

thoroughbreds, which are, respectively, registered with the

4232

American Paint Horse Association, Appaloosa Horse Club, Arabian

4233

Horse Registry of America, Palomino Horse Breeders of America, or

4234

United States Trotting Association, for no more than 50 percent

4235

of the quarter horse races daily, and may substitute races of

4236

thoroughbreds registered with the Jockey Club for no more than 50

4237

percent of the quarter horse races daily with the written consent

4238

of all greyhound, harness, and thoroughbred permitholders whose

4239

pari-mutuel facilities are located within 50 air miles of such

4240

quarter horse racing permitholder's pari-mutuel facility.

4241

     Section 66.  Section 550.3355, Florida Statutes, is amended

4242

to read:

4243

     550.3355  Harness track licenses for summer quarter horse

4244

racing.--Any harness track licensed to operate under the

4245

provisions of s. 550.375 may make application for, and shall be

4246

issued by the bureau division, a license to operate not more than

4247

50 quarter horse racing days during the summer season, which

4248

shall extend from June 1 until September 1 of each year. However,

4249

this license to operate quarter horse racing for 50 days is in

4250

addition to the racing days and dates provided in s. 550.375 for

4251

harness racing during the winter seasons; and, it does not affect

4252

the right of such licensee to operate harness racing at the track

4253

as provided in s. 550.375 during the winter season. All

4254

provisions of this chapter governing quarter horse racing not in

4255

conflict herewith apply to the operation of quarter horse

4256

meetings authorized hereunder, except that all quarter horse

4257

racing permitted hereunder shall be conducted at night.

4258

     Section 67.  Paragraph (a) of subsection (6) and subsections

4259

(10) and (13) of section 550.3551, Florida Statutes, are amended

4260

to read:

4261

     550.3551  Transmission of racing and jai alai information;

4262

commingling of pari-mutuel pools.--

4263

     (6)(a)  A maximum of 20 percent of the total number of races

4264

on which wagers are accepted by a greyhound permitholder not

4265

located as specified in s. 550.615(6) may be received from

4266

locations outside this state. A permitholder may not conduct

4267

fewer than eight live races or games on any authorized race day

4268

except as provided in this subsection. A thoroughbred

4269

permitholder may not conduct fewer than eight live races on any

4270

race day without the written approval of the Florida Thoroughbred

4271

Breeders' Association and the Florida Horsemen's Benevolent and

4272

Protective Association, Inc., unless it is determined by the

4273

department that another entity represents a majority of the

4274

thoroughbred racehorse owners and trainers in the state. A

4275

harness permitholder may conduct fewer than eight live races on

4276

any authorized race day, except that such permitholder must

4277

conduct a full schedule of live racing during its race meet

4278

consisting of at least eight live races per authorized race day

4279

for at least 100 days. Any harness horse permitholder that during

4280

the preceding racing season conducted a full schedule of live

4281

racing may, at any time during its current race meet, receive

4282

full-card broadcasts of harness horse races conducted at harness

4283

racetracks outside this state at the harness track of the

4284

permitholder and accept wagers on such harness races. With

4285

specific authorization from the bureau division for special

4286

racing events, a permitholder may conduct fewer than eight live

4287

races or games when the permitholder also broadcasts out-of-state

4288

races or games. The bureau division may not grant more than two

4289

such exceptions a year for a permitholder in any 12-month period,

4290

and those two exceptions may not be consecutive.

4291

     (10) The bureau division may adopt rules necessary to

4292

facilitate commingling of pari-mutuel pools, to ensure the proper

4293

calculation of payoffs in circumstances in which different

4294

commission percentages are applicable and to regulate the

4295

distribution of net proceeds between the horse track and, in this

4296

state, the horsemen's associations.

4297

     (13)  This section does not prohibit the commingling of

4298

national pari-mutuel pools by a totalisator company that is

4299

licensed under this chapter. Such commingling of national pools

4300

is subject to bureau division review and approval and must be

4301

performed in accordance with rules adopted by the bureau division

4302

to ensure accurate calculation and distribution of the pools.

4303

     Section 68.  Section 550.3605, Florida Statutes, is amended

4304

to read:

4305

     550.3605  Use of electronic transmitting equipment; permit

4306

by bureau division required.--Any person who has in her or his

4307

possession or control on the premises of any licensed horse or

4308

dog racetrack or jai alai fronton any electronic transmitting

4309

equipment or device that is capable of transmitting or

4310

communicating any information whatsoever to another person,

4311

without the written permission of the bureau division, is guilty

4312

of a misdemeanor of the second degree, punishable as provided in

4313

s. 775.082 or s. 775.083. This section does not apply to the

4314

possession or control of any telephone, telegraph, radio, or

4315

television facilities installed by any such licensee with the

4316

approval of the bureau division.

4317

     Section 69.  Subsections (3), (4), and (5) of section

4318

550.3615, Florida Statutes, are amended to read:

4319

     550.3615  Bookmaking on the grounds of a permitholder;

4320

penalties; reinstatement; duties of track employees; penalty;

4321

exceptions.--

4322

     (3)  Any person who has been convicted of bookmaking in this

4323

state or any other state of the United States or any foreign

4324

country shall be denied admittance to and shall not attend any

4325

racetrack or fronton in this state during its racing seasons or

4326

operating dates, including any practice or preparational days,

4327

for a period of 2 years after the date of conviction or the date

4328

of final appeal. Following the conclusion of the period of

4329

ineligibility, the director of the bureau division may authorize

4330

the reinstatement of an individual following a hearing on

4331

readmittance. Any such person who knowingly violates this

4332

subsection is guilty of a misdemeanor of the first degree,

4333

punishable as provided in s. 775.082 or s. 775.083.

4334

     (4)  If the activities of a person show that this law is

4335

being violated, and such activities are either witnessed or are

4336

common knowledge by any track or fronton employee, it is the duty

4337

of that employee to bring the matter to the immediate attention

4338

of the permitholder, manager, or her or his designee, who shall

4339

notify a law enforcement agency having jurisdiction. Willful

4340

failure on the part of any track or fronton employee to comply

4341

with the provisions of this subsection is a ground for the bureau

4342

division to suspend or revoke that employee's license for track

4343

or fronton employment.

4344

     (5)  Each permittee shall display, in conspicuous places at

4345

a track or fronton and in all race and jai alai daily programs, a

4346

warning to all patrons concerning the prohibition and penalties

4347

of bookmaking contained in this section and s. 849.25. The bureau

4348

division shall adopt rules concerning the uniform size of all

4349

warnings and the number of placements throughout a track or

4350

fronton. Failure on the part of the permittee to display such

4351

warnings may result in the imposition of a $500 fine by the

4352

bureau division for each offense.

4353

     Section 70.  Subsections (2) and (3) of section 550.375,

4354

Florida Statutes, are amended to read:

4355

     550.375  Operation of certain harness tracks.--

4356

     (2)  Any permittee or licensee authorized under this section

4357

to transfer the location of its permit may conduct harness racing

4358

only between the hours of 7 p.m. and 2 a.m. A permit so

4359

transferred applies only to the locations provided in this

4360

section. The provisions of this chapter which prohibit the

4361

location and operation of a licensed harness track permittee and

4362

licensee within 100 air miles of the location of a racetrack

4363

authorized to conduct racing under this chapter and which

4364

prohibit the bureau division from granting any permit to a

4365

harness track at a location in the area in which there are three

4366

horse tracks located within 100 air miles thereof do not apply to

4367

a licensed harness track that is required by the terms of this

4368

section to race between the hours of 7 p.m. and 2 a.m.

4369

     (3) A permit may not be issued by the bureau division for

4370

the operation of a harness track within 75 air miles of a

4371

location of a harness track licensed and operating under this

4372

chapter.

4373

     Section 71.  Section 550.495, Florida Statutes, is amended

4374

to read:

4375

     550.495  Totalisator licensing.--

4376

     (1)  A totalisator may not be operated at a pari-mutuel

4377

facility in this state, or at a facility located in or out of

4378

this state which is used as the primary totalisator for a race or

4379

game conducted in this state, unless the totalisator company

4380

possesses a business license issued by the bureau division.

4381

     (2)(a) Each totalisator company must apply to the bureau

4382

division for an annual business license. The application must

4383

include such information as the bureau division by rule requires.

4384

     (b)  As a part of its license application, each totalisator

4385

company must agree in writing to pay to the bureau division an

4386

amount equal to the loss of any state revenues from missed or

4387

canceled races, games, or performances due to acts of the

4388

totalisator company or its agents or employees or failures of the

4389

totalisator system, except for circumstances beyond the control

4390

of the totalisator company or agent or employee, as determined by

4391

the bureau division.

4392

     (c) Each totalisator company must file with the bureau

4393

division a performance bond, acceptable to the bureau division,

4394

in the sum of $250,000 issued by a surety approved by the bureau

4395

division or must file proof of insurance, acceptable to the

4396

bureau division, against financial loss in the amount of

4397

$250,000, insuring the state against such a revenue loss.

4398

     (d)  In the event of a loss of state tax revenues, the

4399

bureau division shall determine:

4400

     1.  The estimated revenue lost as a result of missed or

4401

canceled races, games, or performances;

4402

     2.  The number of races, games, or performances which is

4403

practicable for the permitholder to conduct in an attempt to

4404

mitigate the revenue loss; and

4405

     3.  The amount of the revenue loss which the makeup races,

4406

games, or performances will not recover and for which the

4407

totalisator company is liable.

4408

     (e) Upon the making of such determinations, the bureau

4409

division shall issue to the totalisator company and to the

4410

affected permitholder an order setting forth the determinations

4411

of the bureau division.

4412

     (f)  If the order is contested by either the totalisator

4413

company or any affected permitholder, the provisions of chapter

4414

120 apply. If the totalisator company contests the order on the

4415

grounds that the revenue loss was due to circumstances beyond its

4416

control, the totalisator company has the burden of proving that

4417

circumstances vary in fact beyond its control. For purposes of

4418

this paragraph, strikes and acts of God are beyond the control of

4419

the totalisator company.

4420

     (g)  Upon the failure of the totalisator company to make the

4421

payment found to be due the state, the bureau division may cause

4422

the forfeiture of the bond or may proceed against the insurance

4423

contract, and the proceeds of the bond or contract shall be

4424

deposited into the Pari-mutuel Wagering Trust Fund. If that bond

4425

was not posted or insurance obtained, the bureau division may

4426

proceed against any assets of the totalisator company to collect

4427

the amounts due under this subsection.

4428

     (3)  If the applicant meets the requirements of this section

4429

and bureau division rules and pays the license fee, the bureau

4430

division shall issue the license.

4431

     (4)  Each totalisator company shall conduct operations in

4432

accordance with rules adopted by the bureau division, in such

4433

form, content, and frequency as the bureau division by rule

4434

determines.

4435

     (5) The bureau division and its representatives may enter

4436

and inspect any area of the premises of a licensed totalisator

4437

company, and may examine totalisator records, during the

4438

licensee's regular business or operating hours.

4439

     Section 72.  Section 550.505, Florida Statutes, is amended

4440

to read:

4441

     550.505  Nonwagering permits.--

4442

     (1)(a)  Except as provided in this section, permits and

4443

licenses issued by the bureau division are intended to be used

4444

for pari-mutuel wagering operations in conjunction with

4445

horseraces, dograces, or jai alai performances.

4446

     (b) Subject to the requirements of this section, the bureau

4447

division is authorized to issue permits for the conduct of

4448

horseracing meets without pari-mutuel wagering or any other form

4449

of wagering being conducted in conjunction therewith. Such

4450

permits shall be known as nonwagering permits and may be issued

4451

only for horseracing meets. A horseracing permitholder need not

4452

obtain an additional permit from the bureau division for

4453

conducting nonwagering racing under this section, but must apply

4454

to the bureau division for the issuance of a license under this

4455

section. The holder of a nonwagering permit is prohibited from

4456

conducting pari-mutuel wagering or any other form of wagering in

4457

conjunction with racing conducted under the permit. Nothing in

4458

this subsection prohibits horseracing for any stake, purse,

4459

prize, or premium.

4460

     (c)  The holder of a nonwagering permit is exempt from the

4461

provisions of s. 550.105 and is exempt from the imposition of

4462

daily license fees and admission tax.

4463

     (2)(a)  Any person not prohibited from holding any type of

4464

pari-mutuel permit under s. 550.1815 shall be allowed to apply to

4465

the bureau division for a nonwagering permit. The applicant must

4466

demonstrate that the location or locations where the nonwagering

4467

permit will be used are available for such use and that the

4468

applicant has the financial ability to satisfy the reasonably

4469

anticipated operational expenses of the first racing year

4470

following final issuance of the nonwagering permit. If the racing

4471

facility is already built, the application must contain a

4472

statement, with reasonable supporting evidence, that the

4473

nonwagering permit will be used for horseracing within 1 year

4474

after the date on which it is granted. If the facility is not

4475

already built, the application must contain a statement, with

4476

reasonable supporting evidence, that substantial construction

4477

will be started within 1 year after the issuance of the

4478

nonwagering permit.

4479

     (b) The bureau division may conduct an eligibility

4480

investigation to determine if the applicant meets the

4481

requirements of paragraph (a).

4482

     (3)(a)  Upon receipt of a nonwagering permit, the

4483

permitholder must apply to the bureau division before June 1 of

4484

each year for an annual nonwagering license for the next

4485

succeeding calendar year. Such application must set forth the

4486

days and locations at which the permitholder will conduct

4487

nonwagering horseracing and must indicate any changes in

4488

ownership or management of the permitholder occurring since the

4489

date of application for the prior license.

4490

     (b) On or before August 1 of each year, the bureau division

4491

shall issue a license authorizing the nonwagering permitholder to

4492

conduct nonwagering horseracing during the succeeding calendar

4493

year during the period and for the number of days set forth in

4494

the application, subject to all other provisions of this section.

4495

     (c) The bureau division may conduct an eligibility

4496

investigation to determine the qualifications of any new

4497

ownership or management interest in the permit.

4498

     (4) Upon the approval of racing dates by the bureau

4499

division, the bureau division shall issue an annual nonwagering

4500

license to the nonwagering permitholder.

4501

     (5)  Only horses registered with an established breed

4502

registration organization, which organization shall be approved

4503

by the bureau division, shall be raced at any race meeting

4504

authorized by this section.

4505

     (6) The bureau division may order any person participating

4506

in a nonwagering meet to cease and desist from participating in

4507

such meet if the bureau division determines the person to be not

4508

of good moral character in accordance with s. 550.1815. The

4509

bureau division may order the operators of a nonwagering meet to

4510

cease and desist from operating the meet if the bureau division

4511

determines the meet is being operated for any illegal purpose.

4512

     Section 73.  Subsection (2) of section 550.5251, Florida

4513

Statutes, is amended to read:

4514

     550.5251  Florida thoroughbred racing; certain permits;

4515

operating days.--

4516

     (2)  Each permitholder referred to in subsection (1) shall

4517

annually, during the period commencing December 15 of each year

4518

and ending January 4 of the following year, file in writing with

4519

the bureau division its application to conduct one or more

4520

thoroughbred racing meetings during the thoroughbred racing

4521

season commencing on the following June 1. Each application shall

4522

specify the number and dates of all performances that the

4523

permitholder intends to conduct during that thoroughbred racing

4524

season. On or before February 15 of each year, the bureau

4525

division shall issue a license authorizing each permitholder to

4526

conduct performances on the dates specified in its application.

4527

Up to March 31 of each year, each permitholder may request and

4528

shall be granted changes in its authorized performances; but

4529

thereafter, as a condition precedent to the validity of its

4530

license and its right to retain its permit, each permitholder

4531

must operate the full number of days authorized on each of the

4532

dates set forth in its license.

4533

     Section 74.  Subsection (3) of section 550.625, Florida

4534

Statutes, is amended to read:

4535

     550.625  Intertrack wagering; purses; breeders' awards.--If

4536

a host track is a horse track:

4537

     (3)  The payment to a breeders' organization shall be

4538

combined with any other amounts received by the respective

4539

breeders' and owners' associations as so designated. Each

4540

breeders' and owners' association receiving these funds shall be

4541

allowed to withhold the same percentage as set forth in s.

4542

550.2625 to be used for administering the payment of awards and

4543

for the general promotion of their respective industries. If the

4544

total combined amount received for thoroughbred breeders' awards

4545

exceeds 15 percent of the purse required to be paid under

4546

subsection (1), the breeders' and owners' association, as so

4547

designated, notwithstanding any other provision of law, shall

4548

submit a plan to the bureau division for approval which would use

4549

the excess funds in promoting the breeding industry by increasing

4550

the purse structure for Florida-breds. Preference shall be given

4551

to the track generating such excess.

4552

     Section 75.  Subsection (5) of section 550.6305, Florida

4553

Statutes, is amended to read:

4554

     550.6305  Intertrack wagering; guest track payments;

4555

accounting rules.--

4556

     (5) The bureau division shall adopt rules providing an

4557

expedient accounting procedure for the transfer of the pari-

4558

mutuel pool in order to properly account for payment of state

4559

taxes, payment to the guest track, payment to the host track,

4560

payment of purses, payment to breeders' associations, payment to

4561

horsemen's associations, and payment to the public.

4562

     Section 76.  Subsections (1) and (2) of section 550.6308,

4563

Florida Statutes, are amended to read:

4564

     550.6308  Limited intertrack wagering license.--In

4565

recognition of the economic importance of the thoroughbred

4566

breeding industry to this state, its positive impact on tourism,

4567

and of the importance of a permanent thoroughbred sales facility

4568

as a key focal point for the activities of the industry, a

4569

limited license to conduct intertrack wagering is established to

4570

ensure the continued viability and public interest in

4571

thoroughbred breeding in Florida.

4572

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

4573

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

4574

public sales of thoroughbred horses pursuant to s. 535.01, that

4575

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

4576

permanent sales facility in this state for at least 3 consecutive

4577

years, and that has conducted at least 1 day of nonwagering

4578

thoroughbred racing in this state, with a purse structure of at

4579

least $250,000 per year for 2 consecutive years before such

4580

application, shall be issued a license, subject to the conditions

4581

set forth in this section, to conduct intertrack wagering at such

4582

a permanent sales facility during the following periods:

4583

     (a)  Up to 21 days in connection with thoroughbred sales;

4584

     (b)  Between November 1 and May 8;

4585

     (c)  Between May 9 and October 31 at such times and on such

4586

days as any thoroughbred, jai alai, or a greyhound permitholder

4587

in the same county is not conducting live performances; provided

4588

that any such permitholder may waive this requirement, in whole

4589

or in part, and allow the licensee under this section to conduct

4590

intertrack wagering during one or more of the permitholder's live

4591

performances; and

4592

     (d)  During the weekend of the Kentucky Derby, the

4593

Preakness, the Belmont, and a Breeders' Cup Meet that is

4594

conducted before November 1 and after May 8.

4595

4596

No more than one such license may be issued, and no such license

4597

may be issued for a facility located within 50 miles of any

4598

thoroughbred permitholder's track.

4599

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

4600

license, the bureau division shall determine which applicant

4601

shall be granted the license. In making its determination, the

4602

bureau division shall grant the license to the applicant

4603

demonstrating superior capabilities, as measured by the length of

4604

time the applicant has been conducting thoroughbred sales within

4605

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

4606

thoroughbred horse sales, within this state or elsewhere, the

4607

length of time the applicant has maintained a permanent

4608

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

4609

facility.

4610

     Section 77.  Subsection (2) of section 550.70, Florida

4611

Statutes, is amended to read:

4612

     550.70  Jai alai general provisions; chief court judges

4613

required; extension of time to construct fronton; amateur jai

4614

alai contests permitted under certain conditions; playing days'

4615

limitations; locking of pari-mutuel machines.--

4616

     (2)  The time within which the holder of a ratified permit

4617

for jai alai or pelota has to construct and complete a fronton

4618

may be extended by the bureau division for a period of 24 months

4619

after the date of the issuance of the permit, anything to the

4620

contrary in any statute notwithstanding.

4621

     Section 78.  Subsection (3) of section 550.902, Florida

4622

Statutes, is amended to read:

4623

     550.902  Purposes.--The purposes of this compact are to:

4624

     (3) Authorize the Department of Gaming Control Business and

4625

Professional Regulation to participate in this compact.

4626

     Section 79.  Subsection (1) of section 550.907, Florida

4627

Statutes, is amended to read:

4628

     550.907  Compact committee.--

4629

     (1)  There is created an interstate governmental entity to

4630

be known as the "compact committee," which shall be composed of

4631

one official from the racing commission, or the equivalent

4632

thereof, in each party state who shall be appointed, serve, and

4633

be subject to removal in accordance with the laws of the party

4634

state that she or he represents. The official from Florida shall

4635

be appointed by the Gaming Commission Secretary of Business and

4636

Professional Regulation. Pursuant to the laws of her or his party

4637

state, each official shall have the assistance of her or his

4638

state's racing commission, or the equivalent thereof, in

4639

considering issues related to licensing of participants in pari-

4640

mutuel wagering and in fulfilling her or his responsibilities as

4641

the representative from her or his state to the compact

4642

committee.

4643

     Section 80.  Section 551.102, Florida Statutes, is amended

4644

to read:

4645

     551.102  Definitions.--As used in this chapter, the term:

4646

     (1) "Bureau" means the Bureau of Slot Machines within the

4647

Division of Gambling Oversight of the Department of Gaming

4648

Control.

4649

     (2)(1) "Distributor" means any person who sells, leases, or

4650

offers or otherwise provides, distributes, or services any slot

4651

machine or associated equipment for use or play of slot machines

4652

in this state. A manufacturer may be a distributor within the

4653

state.

4654

     (3)(2) "Designated slot machine gaming area" means the area

4655

or areas of a facility of a slot machine licensee in which slot

4656

machine gaming may be conducted in accordance with the provisions

4657

of this chapter.

4658

     (4)(3) "Division" means the Division of Gambling Oversight

4659

Pari-mutuel Wagering of the Department of Gaming Control Business

4660

and Professional Regulation.

4661

     (5)(4) "Eligible facility" means any licensed pari-mutuel

4662

facility located in Miami-Dade County or Broward County existing

4663

at the time of adoption of s. 23, Art. X of the State

4664

Constitution that has conducted live racing or games during

4665

calendar years 2002 and 2003 and has been approved by a majority

4666

of voters in a countywide referendum to have slot machines at

4667

such facility in the respective county.

4668

     (6)(5) "Manufacturer" means any person who manufactures,

4669

builds, rebuilds, fabricates, assembles, produces, programs,

4670

designs, or otherwise makes modifications to any slot machine or

4671

associated equipment for use or play of slot machines in this

4672

state for gaming purposes. A manufacturer may be a distributor

4673

within the state.

4674

     (7)(6) "Nonredeemable credits" means slot machine operating

4675

credits that cannot be redeemed for cash or any other thing of

4676

value by a slot machine, kiosk, or the slot machine licensee and

4677

that are provided free of charge to patrons. Such credits do not

4678

constitute "nonredeemable credits" until such time as they are

4679

metered as credit into a slot machine and recorded in the

4680

facility-based monitoring system.

4681

     (8)(7) "Progressive system" means a computerized system

4682

linking slot machines in one or more licensed facilities within

4683

this state and offering one or more common progressive payouts

4684

based on the amounts wagered.

4685

     (9)(8) "Slot machine" means any mechanical or electrical

4686

contrivance, terminal that may or may not be capable of

4687

downloading slot games from a central server system, machine, or

4688

other device that, upon insertion of a coin, bill, ticket, token,

4689

or similar object or upon payment of any consideration

4690

whatsoever, including the use of any electronic payment system

4691

except a credit card or debit card, is available to play or

4692

operate, the play or operation of which, whether by reason of

4693

skill or application of the element of chance or both, may

4694

deliver or entitle the person or persons playing or operating the

4695

contrivance, terminal, machine, or other device to receive cash,

4696

billets, tickets, tokens, or electronic credits to be exchanged

4697

for cash or to receive merchandise or anything of value

4698

whatsoever, whether the payoff is made automatically from the

4699

machine or manually. The term includes associated equipment

4700

necessary to conduct the operation of the contrivance, terminal,

4701

machine, or other device. Slot machines may use spinning reels,

4702

video displays, or both. A slot machine is not a "coin-operated

4703

amusement machine" as defined in s. 212.02(24) or an amusement

4704

game or machine as described in s. 849.161, and slot machines are

4705

not subject to the tax imposed by s. 212.05(1)(h).

4706

     (10)(9) "Slot machine facility" means a facility at which

4707

slot machines as defined in this chapter are lawfully offered for

4708

play.

4709

     (11)(10) "Slot machine license" means a license issued by

4710

the bureau division authorizing a pari-mutuel permitholder to

4711

place and operate slot machines as provided by s. 23, Art. X of

4712

the State Constitution, the provisions of this chapter, and

4713

bureau division rules.

4714

     (12)(11) "Slot machine licensee" means a pari-mutuel

4715

permitholder who holds a license issued by the bureau division

4716

pursuant to this chapter that authorizes such person to possess a

4717

slot machine within facilities specified in s. 23, Art. X of the

4718

State Constitution and allows slot machine gaming.

4719

     (13)(12) "Slot machine operator" means a person employed or

4720

contracted by the owner of a licensed facility to conduct slot

4721

machine gaming at that licensed facility.

4722

     (14)(13) "Slot machine revenues" means the total of all

4723

cash and property, except nonredeemable credits, received by the

4724

slot machine licensee from the operation of slot machines less

4725

the amount of cash, cash equivalents, credits, and prizes paid to

4726

winners of slot machine gaming.

4727

     Section 81.  Section 551.103, Florida Statutes, is amended

4728

to read:

4729

     551.103 Powers and duties of the bureau division and law

4730

enforcement.--

4731

     (1) The bureau division shall adopt, pursuant to the

4732

provisions of ss. 120.536(1) and 120.54, all rules necessary to

4733

implement, administer, and regulate slot machine gaming as

4734

authorized in this chapter. Such rules must include:

4735

     (a)  Procedures for applying for a slot machine license and

4736

renewal of a slot machine license.

4737

     (b)  Technical requirements and the qualifications contained

4738

in this chapter that are necessary to receive a slot machine

4739

license or slot machine occupational license.

4740

     (c)  Procedures to scientifically test and technically

4741

evaluate slot machines for compliance with this chapter. The

4742

bureau division may contract with an independent testing

4743

laboratory to conduct any necessary testing under this section.

4744

The independent testing laboratory must have a national

4745

reputation which is demonstrably competent and qualified to

4746

scientifically test and evaluate slot machines for compliance

4747

with this chapter and to otherwise perform the functions assigned

4748

to it in this chapter. An independent testing laboratory shall

4749

not be owned or controlled by a licensee. The use of an

4750

independent testing laboratory for any purpose related to the

4751

conduct of slot machine gaming by a licensee under this chapter

4752

shall be made from a list of one or more laboratories approved by

4753

the bureau division.

4754

     (d)  Procedures relating to slot machine revenues, including

4755

verifying and accounting for such revenues, auditing, and

4756

collecting taxes and fees consistent with this chapter.

4757

     (e)  Procedures for regulating, managing, and auditing the

4758

operation, financial data, and program information relating to

4759

slot machine gaming that allow the bureau division and the

4760

Division of Licensing and Department of Law Enforcement to audit

4761

the operation, financial data, and program information of a slot

4762

machine licensee, as required by the bureau division or the

4763

Division of Licensing and Department of Law Enforcement, and

4764

provide the bureau division and the Division of Licensing and

4765

Department of Law Enforcement with the ability to monitor, at any

4766

time on a real-time basis, wagering patterns, payouts, tax

4767

collection, and compliance with any rules adopted by the bureau

4768

division for the regulation and control of slot machines operated

4769

under this chapter. Such continuous and complete access, at any

4770

time on a real-time basis, shall include the ability of either

4771

the bureau division or the Division of Licensing and Department

4772

of Law Enforcement to suspend play immediately on particular slot

4773

machines if monitoring of the facilities-based computer system

4774

indicates possible tampering or manipulation of those slot

4775

machines or the ability to suspend play immediately of the entire

4776

operation if the tampering or manipulation is of the computer

4777

system itself. The bureau division shall notify the Division of

4778

Licensing and Department of Law Enforcement or the Division of

4779

Licensing and Department of Law Enforcement shall notify the

4780

bureau division, as appropriate, whenever there is a suspension

4781

of play under this paragraph. The bureau division and the

4782

Division of Licensing and Department of Law Enforcement shall

4783

exchange such information necessary for and cooperate in the

4784

investigation of the circumstances requiring suspension of play

4785

under this paragraph.

4786

     (f)  Procedures for requiring each licensee at his or her

4787

own cost and expense to supply the bureau division with a bond

4788

having the penal sum of $2 million payable to the Governor and

4789

his or her successors in office for each year of the licensee's

4790

slot machine operations. Any bond shall be issued by a surety or

4791

sureties approved by the bureau division and the Chief Financial

4792

Officer, conditioned to faithfully make the payments to the Chief

4793

Financial Officer in his or her capacity as treasurer of the

4794

bureau division. The licensee shall be required to keep its books

4795

and records and make reports as provided in this chapter and to

4796

conduct its slot machine operations in conformity with this

4797

chapter and all other provisions of law. Such bond shall be

4798

separate and distinct from the bond required in s. 550.125.

4799

     (g)  Procedures for requiring licensees to maintain

4800

specified records and submit any data, information, record, or

4801

report, including financial and income records, required by this

4802

chapter or determined by the bureau division to be necessary to

4803

the proper implementation and enforcement of this chapter.

4804

     (h)  A requirement that the payout percentage of a slot

4805

machine be no less than 85 percent.

4806

     (i)  Minimum standards for security of the facilities,

4807

including floor plans, security cameras, and other security

4808

equipment.

4809

     (j)  Procedures for requiring slot machine licensees to

4810

implement and establish drug-testing programs for all slot

4811

machine occupational licensees.

4812

     (2) The bureau division shall conduct such investigations

4813

necessary to fulfill its responsibilities under the provisions of

4814

this chapter.

4815

     (3) The Division of Licensing and Department of Law

4816

Enforcement and local law enforcement agencies shall have

4817

concurrent jurisdiction to investigate criminal violations of

4818

this chapter and may investigate any other criminal violation of

4819

law occurring at the facilities of a slot machine licensee, and

4820

such investigations may be conducted in conjunction with the

4821

appropriate state attorney.

4822

     (4)(a) The bureau division, the Division of Licensing and

4823

Department of Law Enforcement, and local law enforcement agencies

4824

shall have unrestricted access to the slot machine licensee's

4825

facility at all times and shall require of each slot machine

4826

licensee strict compliance with the laws of this state relating

4827

to the transaction of such business. The bureau division, the

4828

Division of Licensing and Department of Law Enforcement, and

4829

local law enforcement agencies may:

4830

     1.  Inspect and examine premises where slot machines are

4831

offered for play.

4832

     2.  Inspect slot machines and related equipment and

4833

supplies.

4834

     (b) In addition, the bureau division may:

4835

     1.  Collect taxes, assessments, fees, and penalties.

4836

     2.  Deny, revoke, suspend, or place conditions on the

4837

license of a person who violates any provision of this chapter or

4838

rule adopted pursuant thereto.

4839

     (5) The bureau division shall revoke or suspend the license

4840

of any person who is no longer qualified or who is found, after

4841

receiving a license, to have been unqualified at the time of

4842

application for the license.

4843

     (6)  This section does not:

4844

     (a) Prohibit the Division of Licensing and Department of

4845

Law Enforcement or any law enforcement authority whose

4846

jurisdiction includes a licensed facility from conducting

4847

investigations of criminal activities occurring at the facility

4848

of the slot machine licensee;

4849

     (b)  Restrict access to the slot machine licensee's facility

4850

by the Division of Licensing and Department of Law Enforcement or

4851

any local law enforcement authority whose jurisdiction includes

4852

the slot machine licensee's facility; or

4853

     (c) Restrict access by the Division of Licensing and

4854

Department of Law Enforcement or local law enforcement

4855

authorities to information and records necessary to the

4856

investigation of criminal activity that are contained within the

4857

slot machine licensee's facility.

4858

     Section 82.  Section 551.104, Florida Statutes, is amended

4859

to read:

4860

     551.104  License to conduct slot machine gaming.--

4861

     (1) Upon application and a finding by the bureau division

4862

after investigation that the application is complete and the

4863

applicant is qualified and payment of the initial license fee,

4864

the bureau division may issue a license to conduct slot machine

4865

gaming in the designated slot machine gaming area of the eligible

4866

facility. Once licensed, slot machine gaming may be conducted

4867

subject to the requirements of this chapter and rules adopted

4868

pursuant thereto.

4869

     (2) An application may be approved by the bureau division

4870

only after the voters of the county where the applicant's

4871

facility is located have authorized by referendum slot machines

4872

within pari-mutuel facilities in that county as specified in s.

4873

23, Art. X of the State Constitution.

4874

     (3)  A slot machine license may be issued only to a licensed

4875

pari-mutuel permitholder, and slot machine gaming may be

4876

conducted only at the eligible facility at which the permitholder

4877

is authorized under its valid pari-mutuel wagering permit to

4878

conduct pari-mutuel wagering activities.

4879

     (4)  As a condition of licensure and to maintain continued

4880

authority for the conduct of slot machine gaming, the slot

4881

machine licensee shall:

4882

     (a)  Continue to be in compliance with this chapter.

4883

     (b)  Continue to be in compliance with chapter 550, where

4884

applicable, and maintain the pari-mutuel permit and license in

4885

good standing pursuant to the provisions of chapter 550.

4886

Notwithstanding any contrary provision of law and in order to

4887

expedite the operation of slot machines at eligible facilities,

4888

any eligible facility shall be entitled within 60 days after the

4889

effective date of this act to amend its 2006-2007 pari-mutuel

4890

wagering operating license issued by the bureau division under

4891

ss. 550.0115 and 550.01215. The bureau division shall issue a new

4892

license to the eligible facility to effectuate any approved

4893

change.

4894

     (c)  Conduct no fewer than a full schedule of live racing or

4895

games as defined in s. 550.002(11). A permitholder's

4896

responsibility to conduct such number of live races or games

4897

shall be reduced by the number of races or games that could not

4898

be conducted due to the direct result of fire, war, hurricane, or

4899

other disaster or event beyond the control of the permitholder.

4900

     (d)  Upon approval of any changes relating to the pari-

4901

mutuel permit by the bureau division, be responsible for

4902

providing appropriate current and accurate documentation on a

4903

timely basis to the bureau division in order to continue the slot

4904

machine license in good standing. Changes in ownership or

4905

interest of a slot machine license of 5 percent or more of the

4906

stock or other evidence of ownership or equity in the slot

4907

machine license or any parent corporation or other business

4908

entity that in any way owns or controls the slot machine license

4909

shall be approved by the bureau division prior to such change,

4910

unless the owner is an existing holder of that license who was

4911

previously approved by the bureau division. Changes in ownership

4912

or interest of a slot machine license of less than 5 percent,

4913

unless such change results in a cumulative total of 5 percent or

4914

more, shall be reported to the bureau division within 20 days

4915

after the change. The bureau division may then conduct an

4916

investigation to ensure that the license is properly updated to

4917

show the change in ownership or interest. No reporting is

4918

required if the person is holding 5 percent or less equity or

4919

securities of a corporate owner of the slot machine licensee that

4920

has its securities registered pursuant to s. 12 of the Securities

4921

Exchange Act of 1934, 15 U.S.C. ss. 78a-78kk, and if such

4922

corporation or entity files with the United States Securities and

4923

Exchange Commission the reports required by s. 13 of that act or

4924

if the securities of the corporation or entity are regularly

4925

traded on an established securities market in the United States.

4926

A change in ownership or interest of less than 5 percent which

4927

results in a cumulative ownership or interest of 5 percent or

4928

more shall be approved by the bureau division prior to such

4929

change unless the owner is an existing holder of the license who

4930

was previously approved by the bureau division.

4931

     (e) Allow the bureau division and the Division of Licensing

4932

and Department of Law Enforcement unrestricted access to and

4933

right of inspection of facilities of a slot machine licensee in

4934

which any activity relative to the conduct of slot machine gaming

4935

is conducted.

4936

     (f)  Ensure that the facilities-based computer system that

4937

the licensee will use for operational and accounting functions of

4938

the slot machine facility is specifically structured to

4939

facilitate regulatory oversight. The facilities-based computer

4940

system shall be designed to provide the bureau division and the

4941

Division of Licensing and Department of Law Enforcement with the

4942

ability to monitor, at any time on a real-time basis, the

4943

wagering patterns, payouts, tax collection, and such other

4944

operations as necessary to determine whether the facility is in

4945

compliance with statutory provisions and rules adopted by the

4946

bureau division for the regulation and control of slot machine

4947

gaming. The bureau division and the Division of Licensing and

4948

Department of Law Enforcement shall have complete and continuous

4949

access to this system. Such access shall include the ability of

4950

either the bureau division or the Division of Licensing and

4951

Department of Law Enforcement to suspend play immediately on

4952

particular slot machines if monitoring of the system indicates

4953

possible tampering or manipulation of those slot machines or the

4954

ability to suspend play immediately of the entire operation if

4955

the tampering or manipulation is of the computer system itself.

4956

The computer system shall be reviewed and approved by the bureau

4957

division to ensure necessary access, security, and functionality.

4958

The bureau division may adopt rules to provide for the approval

4959

process.

4960

     (g)  Ensure that each slot machine is protected from

4961

manipulation or tampering to affect the random probabilities of

4962

winning plays. The bureau division or the Division of Licensing

4963

and Department of Law Enforcement shall have the authority to

4964

suspend play upon reasonable suspicion of any manipulation or

4965

tampering. When play has been suspended on any slot machine, the

4966

bureau division or the Division of Licensing and Department of

4967

Law Enforcement may examine any slot machine to determine whether

4968

the machine has been tampered with or manipulated and whether the

4969

machine should be returned to operation.

4970

     (h)  Submit a security plan, including the facilities' floor

4971

plan, the locations of security cameras, and a listing of all

4972

security equipment that is capable of observing and

4973

electronically recording activities being conducted in the

4974

facilities of the slot machine licensee. The security plan must

4975

meet the minimum security requirements as determined by the

4976

bureau division under s. 551.103(1)(i) and be implemented prior

4977

to operation of slot machine gaming. The slot machine licensee's

4978

facilities must adhere to the security plan at all times. Any

4979

changes to the security plan must be submitted by the licensee to

4980

the bureau division prior to implementation. The bureau division

4981

shall furnish copies of the security plan and changes in the plan

4982

to the Division of Licensing and Department of Law Enforcement.

4983

     (i) Create and file with the bureau division a written

4984

policy for:

4985

     1.  Creating opportunities to purchase from vendors in this

4986

state, including minority vendors.

4987

     2.  Creating opportunities for employment of residents of

4988

this state, including minority residents.

4989

     3.  Ensuring opportunities for construction services from

4990

minority contractors.

4991

     4.  Ensuring that opportunities for employment are offered

4992

on an equal, nondiscriminatory basis.

4993

     5.  Training for employees on responsible gaming and working

4994

with a compulsive or addictive gambling prevention program to

4995

further its purposes as provided for in s. 551.118.

4996

     6.  The implementation of a drug-testing program that

4997

includes, but is not limited to, requiring each employee to sign

4998

an agreement that he or she understands that the slot machine

4999

facility is a drug-free workplace.

5000

5001

The slot machine licensee shall use the Internet-based job-

5002

listing system of the Agency for Workforce Innovation in

5003

advertising employment opportunities. Beginning in June 2007,

5004

each slot machine licensee shall provide an annual report to the

5005

bureau division containing information indicating compliance with

5006

this paragraph in regard to minority persons.

5007

     (j)  Ensure that the payout percentage of a slot machine is

5008

no less than 85 percent.

5009

     (5)  A slot machine license is not transferable.

5010

     (6)  A slot machine licensee shall keep and maintain

5011

permanent daily records of its slot machine operation and shall

5012

maintain such records for a period of not less than 5 years.

5013

These records must include all financial transactions and contain

5014

sufficient detail to determine compliance with the requirements

5015

of this chapter. All records shall be available for audit and

5016

inspection by the bureau division, the Division of Licensing and

5017

Department of Law Enforcement, or other law enforcement agencies

5018

during the licensee's regular business hours.

5019

     (7) A slot machine licensee shall file with the bureau

5020

division a monthly report containing the required records of such

5021

slot machine operation. The required reports shall be submitted

5022

on forms prescribed by the bureau division and shall be due at

5023

the same time as the monthly pari-mutuel reports are due to the

5024

bureau division, and the reports shall be deemed public records

5025

once filed.

5026

     (8) A slot machine licensee shall file with the bureau

5027

division an audit of the receipt and distribution of all slot

5028

machine revenues provided by an independent certified public

5029

accountant verifying compliance with all financial and auditing

5030

provisions of this chapter and the associated rules adopted under

5031

this chapter. The audit must include verification of compliance

5032

with all statutes and rules regarding all required records of

5033

slot machine operations. Such audit shall be filed within 60 days

5034

after the completion of the permitholder's pari-mutuel meet.

5035

     (9) The bureau division may share any information with the

5036

Division of Licensing and Department of Law Enforcement, any

5037

other law enforcement agency having jurisdiction over slot

5038

machine gaming or pari-mutuel activities, or any other state or

5039

federal law enforcement agency the bureau division or the

5040

Division of Licensing and Department of Law Enforcement deems

5041

appropriate. Any law enforcement agency having jurisdiction over

5042

slot machine gaming or pari-mutuel activities may share any

5043

information obtained or developed by it with the bureau division.

5044

     (10)(a) A No slot machine license or renewal thereof may

5045

not shall be issued to an applicant holding a permit under

5046

chapter 550 to conduct pari-mutuel wagering meets of thoroughbred

5047

racing unless the applicant has on file with the bureau division

5048

a binding written agreement between the applicant and the Florida

5049

Horsemen's Benevolent and Protective Association, Inc., governing

5050

the payment of purses on live thoroughbred races conducted at the

5051

licensee's pari-mutuel facility. In addition, a no slot machine

5052

license or renewal thereof may not shall be issued to such an

5053

applicant unless the applicant has on file with the bureau

5054

division a binding written agreement between the applicant and

5055

the Florida Thoroughbred Breeders' Association, Inc., governing

5056

the payment of breeders', stallion, and special racing awards on

5057

live thoroughbred races conducted at the licensee's pari-mutuel

5058

facility. The agreement governing purses and the agreement

5059

governing awards may direct the payment of such purses and awards

5060

from revenues generated by any wagering or gaming the applicant

5061

is authorized to conduct under Florida law. All purses and awards

5062

shall be subject to the terms of chapter 550. All sums for

5063

breeders', stallion, and special racing awards shall be remitted

5064

monthly to the Florida Thoroughbred Breeders' Association, Inc.,

5065

for the payment of awards subject to the administrative fee

5066

authorized in s. 550.2625(3).

5067

     (b) The bureau division shall suspend a slot machine

5068

license if one or more of the agreements required under paragraph

5069

(a) are terminated or otherwise cease to operate or if the bureau

5070

division determines that the licensee is materially failing to

5071

comply with the terms of such an agreement. Any such suspension

5072

shall take place in accordance with chapter 120.

5073

     (c)1.  If an agreement required under paragraph (a) cannot

5074

be reached prior to the initial issuance of the slot machine

5075

license, either party may request arbitration or, in the case of

5076

a renewal, if an agreement required under paragraph (a) is not in

5077

place 120 days prior to the scheduled expiration date of the slot

5078

machine license, the applicant shall immediately ask the American

5079

Arbitration Association to furnish a list of 11 arbitrators, each

5080

of whom shall have at least 5 years of commercial arbitration

5081

experience and no financial interest in or prior relationship

5082

with any of the parties or their affiliated or related entities

5083

or principals. Each required party to the agreement shall select

5084

a single arbitrator from the list provided by the American

5085

Arbitration Association within 10 days of receipt, and the

5086

individuals so selected shall choose one additional arbitrator

5087

from the list within the next 10 days.

5088

     2.  If an agreement required under paragraph (a) is not in

5089

place 60 days after the request under subparagraph 1. in the case

5090

of an initial slot machine license or, in the case of a renewal,

5091

60 days prior to the scheduled expiration date of the slot

5092

machine license, the matter shall be immediately submitted to

5093

mandatory binding arbitration to resolve the disagreement between

5094

the parties. The three arbitrators selected pursuant to

5095

subparagraph 1. shall constitute the panel that shall arbitrate

5096

the dispute between the parties pursuant to the American

5097

Arbitration Association Commercial Arbitration Rules and chapter

5098

682.

5099

     3.  At the conclusion of the proceedings, which shall be no

5100

later than 90 days after the request under subparagraph 1. in the

5101

case of an initial slot machine license or, in the case of a

5102

renewal, 30 days prior to the scheduled expiration date of the

5103

slot machine license, the arbitration panel shall present to the

5104

parties a proposed agreement that the majority of the panel

5105

believes equitably balances the rights, interests, obligations,

5106

and reasonable expectations of the parties. The parties shall

5107

immediately enter into such agreement, which shall satisfy the

5108

requirements of paragraph (a) and permit issuance of the pending

5109

annual slot machine license or renewal. The agreement produced by

5110

the arbitration panel under this subparagraph shall be effective

5111

until the last day of the license or renewal period or until the

5112

parties enter into a different agreement. Each party shall pay

5113

its respective costs of arbitration and shall pay one-half of the

5114

costs of the arbitration panel, unless the parties otherwise

5115

agree. If the agreement produced by the arbitration panel under

5116

this subparagraph remains in place 120 days prior to the

5117

scheduled issuance of the next annual license renewal, then the

5118

arbitration process established in this paragraph will begin

5119

again.

5120

     4.  In the event that neither of the agreements required

5121

under paragraph (a) are in place by the deadlines established in

5122

this paragraph, arbitration regarding each agreement will proceed

5123

independently, with separate lists of arbitrators, arbitration

5124

panels, arbitration proceedings, and resulting agreements.

5125

     5.  With respect to the agreement required under paragraph

5126

(a) governing the payment of purses, the arbitration and

5127

resulting agreement called for under this paragraph shall be

5128

limited to the payment of purses from slot machine revenues only.

5129

     (d)  If any provision of this subsection or its application

5130

to any person or circumstance is held invalid, the invalidity

5131

does not affect other provisions or applications of this

5132

subsection or chapter which can be given effect without the

5133

invalid provision or application, and to this end the provisions

5134

of this subsection are severable.

5135

     Section 83.  Section 551.1045, Florida Statutes, is amended

5136

to read:

5137

     551.1045  Temporary licenses.--

5138

     (1)  Notwithstanding any provision of s. 120.60 to the

5139

contrary, the bureau division may issue a temporary occupational

5140

license upon the receipt of a complete application from the

5141

applicant and a determination that the applicant has not been

5142

convicted of or had adjudication withheld on any disqualifying

5143

criminal offense. The temporary occupational license remains

5144

valid until such time as the bureau division grants an

5145

occupational license or notifies the applicant of its intended

5146

decision to deny the applicant a license pursuant to the

5147

provisions of s. 120.60. The bureau division shall adopt rules to

5148

administer this subsection. However, not more than one temporary

5149

license may be issued for any person in any year.

5150

     (2)  A temporary license issued under this section is

5151

nontransferable.

5152

     Section 84.  Subsection (3) of section 551.105, Florida

5153

Statutes, is amended to read:

5154

     551.105  Slot machine license renewal.--

5155

     (3) Upon determination by the bureau division that the

5156

application for renewal is complete and qualifications have been

5157

met, including payment of the renewal fee, the slot machine

5158

license shall be renewed annually.

5159

     Section 85.  Section 551.106, Florida Statutes, is amended

5160

to read:

5161

     551.106  License fee; tax rate; penalties.--

5162

     (1)  LICENSE FEE.--

5163

     (a)  Upon submission of the initial application for a slot

5164

machine license and annually thereafter, on the anniversary date

5165

of the issuance of the initial license, the licensee must pay to

5166

the bureau division a nonrefundable license fee of $3 million for

5167

the succeeding 12 months of licensure. The license fee shall be

5168

deposited into the Pari-mutuel Wagering Trust Fund of the

5169

Department of Gaming Control Business and Professional Regulation

5170

to be used by the bureau division and the Division of Licensing

5171

and Department of Law Enforcement for investigations, regulation

5172

of slot machine gaming, and enforcement of slot machine gaming

5173

provisions under this chapter. These payments shall be accounted

5174

for separately from taxes or fees paid pursuant to the provisions

5175

of chapter 550.

5176

     (b)  Prior to January 1, 2007, the division shall evaluate

5177

the license fee and shall make recommendations to the President

5178

of the Senate and the Speaker of the House of Representatives

5179

regarding the optimum level of slot machine license fees in order

5180

to adequately support the slot machine regulatory program.

5181

     (2)  TAX ON SLOT MACHINE REVENUES.--

5182

     (a)  The tax rate on slot machine revenues at each facility

5183

shall be 50 percent.

5184

     (b)  The slot machine revenue tax imposed by this section

5185

shall be paid to the bureau division for deposit into the Pari-

5186

mutuel Wagering Trust Fund for immediate transfer by the Chief

5187

Financial Officer for deposit into the Educational Enhancement

5188

Trust Fund of the Department of Education. Any interest earnings

5189

on the tax revenues shall also be transferred to the Educational

5190

Enhancement Trust Fund.

5191

     (c)1.  Funds transferred to the Educational Enhancement

5192

Trust Fund under paragraph (b) shall be used to supplement public

5193

education funding statewide.

5194

     2.  If necessary to comply with any covenant established

5195

pursuant to s. 1013.68(4), s. 1013.70(1), or s. 1013.737(3),

5196

funds transferred to the Educational Enhancement Trust Fund under

5197

paragraph (b) shall first be available to pay debt service on

5198

lottery bonds issued to fund school construction in the event

5199

lottery revenues are insufficient for such purpose or to satisfy

5200

debt service reserve requirements established in connection with

5201

lottery bonds. Moneys available pursuant to this subparagraph are

5202

subject to annual appropriation by the Legislature.

5203

     (3)  PAYMENT AND DISPOSITION OF TAXES.--Payment for the tax

5204

on slot machine revenues imposed by this section shall be paid to

5205

the bureau division. The bureau division shall deposit these sums

5206

with the Chief Financial Officer, to the credit of the Pari-

5207

mutuel Wagering Trust Fund. The slot machine licensee shall remit

5208

to the bureau division payment for the tax on slot machine

5209

revenues. Such payments shall be remitted by 3 p.m. Wednesday of

5210

each week for taxes imposed and collected for the preceding week

5211

ending on Sunday. The slot machine licensee shall file a report

5212

under oath by the 5th day of each calendar month for all taxes

5213

remitted during the preceding calendar month. Such payments shall

5214

be accompanied by a report under oath showing all slot machine

5215

gaming activities for the preceding calendar month and such other

5216

information as may be prescribed by the bureau division.

5217

     (4)  FAILURE TO PAY TAX; PENALTIES.--A slot machine licensee

5218

who fails to make tax payments as required under this section is

5219

subject to an administrative penalty of up to $10,000 for each

5220

day the tax payment is not remitted. All administrative penalties

5221

imposed and collected shall be deposited into the Pari-mutuel

5222

Wagering Trust Fund of the Department of Gaming Control Business

5223

and Professional Regulation. If any slot machine licensee fails

5224

to pay penalties imposed by order of the bureau division under

5225

this subsection, the bureau division may suspend, revoke, or

5226

refuse to renew the license of the slot machine licensee.

5227

     (5) SUBMISSION OF FUNDS.--The bureau division may require

5228

slot machine licensees to remit taxes, fees, fines, and

5229

assessments by electronic funds transfer.

5230

     Section 86.  Subsections (2), (3), (4), (5), (6), (7), (8),

5231

(9), (10), and (11) of section 551.107, Florida Statutes, are

5232

amended to read:

5233

     551.107  Slot machine occupational license; findings;

5234

application; fee.--

5235

     (2)(a)  The following slot machine occupational licenses

5236

shall be issued to persons or entities that, by virtue of the

5237

positions they hold, might be granted access to slot machine

5238

gaming areas or to any other person or entity in one of the

5239

following categories:

5240

     1.  General occupational licenses for general employees,

5241

including food service, maintenance, and other similar service

5242

and support employees having access to the slot machine gaming

5243

area.

5244

     2.  Professional occupational licenses for any person,

5245

proprietorship, partnership, corporation, or other entity that is

5246

authorized by a slot machine licensee to manage, oversee, or

5247

otherwise control daily operations as a slot machine manager, a

5248

floor supervisor, security personnel, or any other similar

5249

position of oversight of gaming operations, or any person who is

5250

not an employee of the slot machine licensee and who provides

5251

maintenance, repair, or upgrades or otherwise services a slot

5252

machine or other slot machine equipment.

5253

     3.  Business occupational licenses for any slot machine

5254

management company or company associated with slot machine

5255

gaming, any person who manufactures, distributes, or sells slot

5256

machines, slot machine paraphernalia, or other associated

5257

equipment to slot machine licensees, or any company that sells or

5258

provides goods or services associated with slot machine gaming to

5259

slot machine licensees.

5260

     (b) The bureau division may issue one license to combine

5261

licenses under this section with pari-mutuel occupational

5262

licenses and cardroom licenses pursuant to s. 550.105(2)(b). The

5263

bureau division shall adopt rules pertaining to occupational

5264

licenses under this subsection. Such rules may specify, but need

5265

not be limited to, requirements and restrictions for licensed

5266

occupations and categories, procedures to apply for any license

5267

or combination of licenses, disqualifying criminal offenses for a

5268

licensed occupation or categories of occupations, and which types

5269

of occupational licenses may be combined into a single license

5270

under this section. The fingerprinting requirements of subsection

5271

(7) apply to any combination license that includes slot machine

5272

license privileges under this section. The bureau division may

5273

not adopt a rule allowing the issuance of an occupational license

5274

to any person who does not meet the minimum background

5275

qualifications under this section.

5276

     (c)  Slot machine occupational licenses are not

5277

transferable.

5278

     (3)  A slot machine licensee may not employ or otherwise

5279

allow a person to work at a licensed facility unless such person

5280

holds the appropriate valid occupational license. A slot machine

5281

licensee may not contract or otherwise do business with a

5282

business required to hold a slot machine occupational license

5283

unless the business holds such a license. A slot machine licensee

5284

may not employ or otherwise allow a person to work in a

5285

supervisory or management professional level at a licensed

5286

facility unless such person holds a valid slot machine

5287

occupational license. All slot machine occupational licensees,

5288

while present in slot machine gaming areas, shall display on

5289

their persons their occupational license identification cards.

5290

     (4)(a)  A person seeking a slot machine occupational license

5291

or renewal thereof shall make application on forms prescribed by

5292

the bureau division and include payment of the appropriate

5293

application fee. Initial and renewal applications for slot

5294

machine occupational licenses must contain all information that

5295

the bureau division, by rule, determines is required to ensure

5296

eligibility.

5297

     (b)  A slot machine license or combination license is valid

5298

for the same term as a pari-mutuel occupational license issued

5299

pursuant to s. 550.105(1).

5300

     (c) Pursuant to rules adopted by the bureau division, any

5301

person may apply for and, if qualified, be issued a slot machine

5302

occupational license valid for a period of 3 years upon payment

5303

of the full occupational license fee for each of the 3 years for

5304

which the license is issued. The slot machine occupational

5305

license is valid during its specified term at any licensed

5306

facility where slot machine gaming is authorized to be conducted.

5307

     (d)  The slot machine occupational license fee for initial

5308

application and annual renewal shall be determined by rule of the

5309

bureau division but may not exceed $50 for a general or

5310

professional occupational license for an employee of the slot

5311

machine licensee or $1,000 for a business occupational license

5312

for nonemployees of the licensee providing goods or services to

5313

the slot machine licensee. License fees for general occupational

5314

licensees shall be paid by the slot machine licensee. Failure to

5315

pay the required fee constitutes grounds for disciplinary action

5316

by the bureau division against the slot machine licensee, but it

5317

is not a violation of this chapter or rules of the bureau

5318

division by the general occupational licensee and does not

5319

prohibit the initial issuance or the renewal of the general

5320

occupational license.

5321

     (5) The bureau division may:

5322

     (a)  Deny an application for, or revoke, suspend, or place

5323

conditions or restrictions on, a license of a person or entity

5324

that has been refused a license by any other state gaming

5325

commission, governmental department, agency, or other authority

5326

exercising regulatory jurisdiction over the gaming of another

5327

state or jurisdiction; or

5328

     (b)  Deny an application for, or suspend or place conditions

5329

on, a license of any person or entity that is under suspension or

5330

has unpaid fines in another state or jurisdiction.

5331

     (6)(a) The bureau division may deny, suspend, revoke, or

5332

refuse to renew any slot machine occupational license if the

5333

applicant for such license or the licensee has violated the

5334

provisions of this chapter or the rules of the bureau division

5335

governing the conduct of persons connected with slot machine

5336

gaming. In addition, the bureau division may deny, suspend,

5337

revoke, or refuse to renew any slot machine occupational license

5338

if the applicant for such license or the licensee has been

5339

convicted in this state, in any other state, or under the laws of

5340

the United States of a capital felony, a felony, or an offense in

5341

any other state that would be a felony under the laws of this

5342

state involving arson; trafficking in, conspiracy to traffic in,

5343

smuggling, importing, conspiracy to smuggle or import, or

5344

delivery, sale, or distribution of a controlled substance;

5345

racketeering; or a crime involving a lack of good moral

5346

character, or has had a gaming license revoked by this state or

5347

any other jurisdiction for any gaming-related offense.

5348

     (b) The bureau division may deny, revoke, or refuse to

5349

renew any slot machine occupational license if the applicant for

5350

such license or the licensee has been convicted of a felony or

5351

misdemeanor in this state, in any other state, or under the laws

5352

of the United States if such felony or misdemeanor is related to

5353

gambling or bookmaking as described in s. 849.25.

5354

     (c)  For purposes of this subsection, the term "convicted"

5355

means having been found guilty, with or without adjudication of

5356

guilt, as a result of a jury verdict, nonjury trial, or entry of

5357

a plea of guilty or nolo contendere.

5358

     (7)  Fingerprints for all slot machine occupational license

5359

applications shall be taken in a manner approved by the bureau

5360

division and shall be submitted electronically to the Division of

5361

Licensing and Department of Law Enforcement for state processing

5362

and the Federal Bureau of Investigation for national processing

5363

for a criminal history record check. All persons as specified in

5364

s. 550.1815(1)(a) employed by or working within a licensed

5365

premises shall submit fingerprints for a criminal history record

5366

check and may not have been convicted of any disqualifying

5367

criminal offenses specified in subsection (6). Bureau Division

5368

employees and law enforcement officers assigned by their

5369

employing agencies to work within the premises as part of their

5370

official duties are excluded from the criminal history record

5371

check requirements under this subsection. For purposes of this

5372

subsection, the term "convicted" means having been found guilty,

5373

with or without adjudication of guilt, as a result of a jury

5374

verdict, nonjury trial, or entry of a plea of guilty or nolo

5375

contendere.

5376

     (a)  Fingerprints shall be taken in a manner approved by the

5377

bureau division upon initial application, or as required

5378

thereafter by rule of the bureau division, and shall be submitted

5379

electronically to the Department of Law Enforcement for state

5380

processing. The Division of Licensing and Department of Law

5381

Enforcement shall forward the fingerprints to the Federal Bureau

5382

of Investigation for national processing. The results of the

5383

criminal history record check shall be returned to the bureau

5384

division for purposes of screening. Licensees shall provide

5385

necessary equipment approved by the Division of Licensing and

5386

Department of Law Enforcement to facilitate such electronic

5387

submission. The bureau division requirements under this

5388

subsection shall be instituted in consultation with the Division

5389

of Licensing and Department of Law Enforcement.

5390

     (b)  The cost of processing fingerprints and conducting a

5391

criminal history record check for a general occupational license

5392

shall be borne by the slot machine licensee. The cost of

5393

processing fingerprints and conducting a criminal history record

5394

check for a business or professional occupational license shall

5395

be borne by the person being checked. The Division of Licensing

5396

and Department of Law Enforcement may invoice the bureau division

5397

for the fingerprints submitted each month.

5398

     (c) All fingerprints submitted to the Division of Licensing

5399

and Department of Law Enforcement and required by this section

5400

shall be retained by the Division of Licensing and Department of

5401

Law Enforcement and entered into the statewide automated

5402

fingerprint identification system as authorized by s.

5403

943.05(2)(b) and shall be available for all purposes and uses

5404

authorized for arrest fingerprint cards entered into the

5405

statewide automated fingerprint identification system pursuant to

5406

s. 943.051.

5407

     (d) The Division of Licensing and Department of Law

5408

Enforcement shall search all arrest fingerprints received

5409

pursuant to s. 943.051 against the fingerprints retained in the

5410

statewide automated fingerprint identification system under

5411

paragraph (c). Any arrest record that is identified with the

5412

retained fingerprints of a person subject to the criminal history

5413

screening requirements of this section shall be reported to the

5414

bureau division. Each licensed facility shall pay a fee to the

5415

bureau division for the cost of retention of the fingerprints and

5416

the ongoing searches under this paragraph. The bureau division

5417

shall forward the payment to the Division of Licensing and

5418

Department of Law Enforcement. The amount of the fee to be

5419

imposed for performing these searches and the procedures for the

5420

retention of licensee fingerprints shall be as established by

5421

rule of the Division of Licensing and Department of Law

5422

Enforcement. The bureau division shall inform the Division of

5423

Licensing and Department of Law Enforcement of any change in the

5424

license status of licensees whose fingerprints are retained under

5425

paragraph (c).

5426

     (e) The bureau division shall request the Department of Law

5427

Enforcement to forward the fingerprints to the Federal Bureau of

5428

Investigation for a national criminal history records check every

5429

3 years following issuance of a license. If the fingerprints of a

5430

person who is licensed have not been retained by the Division of

5431

Licensing and Department of Law Enforcement, the person must file

5432

a complete set of fingerprints as provided for in paragraph (a).

5433

The bureau division shall collect the fees for the cost of the

5434

national criminal history record check under this paragraph and

5435

shall forward the payment to the Division of Licensing and

5436

Department of Law Enforcement. The cost of processing

5437

fingerprints and conducting a criminal history record check under

5438

this paragraph for a general occupational license shall be borne

5439

by the slot machine licensee. The cost of processing fingerprints

5440

and conducting a criminal history record check under this

5441

paragraph for a business or professional occupational license

5442

shall be borne by the person being checked. The Division of

5443

Licensing and Department of Law Enforcement may invoice the

5444

bureau division for the fingerprints submitted each month. Under

5445

penalty of perjury, each person who is licensed or who is

5446

fingerprinted as required by this section must agree to inform

5447

the bureau division within 48 hours if he or she is convicted of

5448

or has entered a plea of guilty or nolo contendere to any

5449

disqualifying offense, regardless of adjudication.

5450

     (8)  All moneys collected pursuant to this section shall be

5451

deposited into the Pari-mutuel Wagering Trust Fund.

5452

     (9) The bureau division may deny, revoke, or suspend any

5453

occupational license if the applicant or holder of the license

5454

accumulates unpaid obligations, defaults in obligations, or

5455

issues drafts or checks that are dishonored or for which payment

5456

is refused without reasonable cause.

5457

     (10) The bureau division may fine or suspend, revoke, or

5458

place conditions upon the license of any licensee who provides

5459

false information under oath regarding an application for a

5460

license or an investigation by the bureau division.

5461

     (11) The bureau division may impose a civil fine of up to

5462

$5,000 for each violation of this chapter or the rules of the

5463

bureau division in addition to or in lieu of any other penalty

5464

provided for in this section. The bureau division may adopt a

5465

penalty schedule for violations of this chapter or any rule

5466

adopted pursuant to this chapter for which it would impose a fine

5467

in lieu of a suspension and adopt rules allowing for the issuance

5468

of citations, including procedures to address such citations, to

5469

persons who violate such rules. In addition to any other penalty

5470

provided by law, the bureau division may exclude from all

5471

licensed slot machine facilities in this state, for a period not

5472

to exceed the period of suspension, revocation, or ineligibility,

5473

any person whose occupational license application has been

5474

declared ineligible to hold an occupational license or whose

5475

occupational license has been suspended or revoked by the bureau

5476

division.

5477

     Section 87.  Section 551.108, Florida Statutes, is amended

5478

to read:

5479

     551.108  Prohibited relationships.--

5480

     (1)  A person employed by or performing any function on

5481

behalf of the bureau division may not:

5482

     (a)  Be an officer, director, owner, or employee of any

5483

person or entity licensed by the bureau division.

5484

     (b)  Have or hold any interest, direct or indirect, in or

5485

engage in any commerce or business relationship with any person

5486

licensed by the bureau division.

5487

     (2)  A manufacturer or distributor of slot machines may not

5488

enter into any contract with a slot machine licensee that

5489

provides for any revenue sharing of any kind or nature that is

5490

directly or indirectly calculated on the basis of a percentage of

5491

slot machine revenues. Any maneuver, shift, or device whereby

5492

this subsection is violated is a violation of this chapter and

5493

renders any such agreement void.

5494

     (3)  A manufacturer or distributor of slot machines or any

5495

equipment necessary for the operation of slot machines or an

5496

officer, director, or employee of any such manufacturer or

5497

distributor may not have any ownership or financial interest in a

5498

slot machine license or in any business owned by the slot machine

5499

licensee.

5500

     (4) An employee of the bureau division or relative living

5501

in the same household as such employee of the bureau division may

5502

not wager at any time on a slot machine located at a facility

5503

licensed by the bureau division.

5504

     (5)  An occupational licensee or relative living in the same

5505

household as such occupational licensee may not wager at any time

5506

on a slot machine located at a facility where that person is

5507

employed.

5508

     Section 88.  Subsections (2) and (7) of section 551.109,

5509

Florida Statutes, are amended to read:

5510

     551.109  Prohibited acts; penalties.--

5511

     (2)  Except as otherwise provided by law and in addition to

5512

any other penalty, any person who possesses a slot machine

5513

without the license required by this chapter or who possesses a

5514

slot machine at any location other than at the slot machine

5515

licensee's facility is subject to an administrative fine or civil

5516

penalty of up to $10,000 per machine. The prohibition in this

5517

subsection does not apply to:

5518

     (a)  Slot machine manufacturers or slot machine distributors

5519

that hold appropriate licenses issued by the bureau division who

5520

are authorized to maintain a slot machine storage and maintenance

5521

facility at any location in a county in which slot machine gaming

5522

is authorized by this chapter. The bureau division may adopt

5523

rules regarding security and access to the storage facility and

5524

inspections by the bureau division.

5525

     (b)  Certified educational facilities that are authorized to

5526

maintain slot machines for the sole purpose of education and

5527

licensure, if any, of slot machine technicians, inspectors, or

5528

investigators. The bureau division and the Division of Licensing

5529

and Department of Law Enforcement may possess slot machines for

5530

training and testing purposes. The bureau division may adopt

5531

rules regarding the regulation of any such slot machines used for

5532

educational, training, or testing purposes.

5533

     (7)  All penalties imposed and collected under this section

5534

must be deposited into the Pari-mutuel Wagering Trust Fund of the

5535

Department of Gaming Control Business and Professional

5536

Regulation.

5537

     Section 89.  Section 551.112, Florida Statutes, is amended

5538

to read:

5539

     551.112  Exclusions of certain persons.--In addition to the

5540

power to exclude certain persons from any facility of a slot

5541

machine licensee in this state, the bureau division may exclude

5542

any person from any facility of a slot machine licensee in this

5543

state for conduct that would constitute, if the person were a

5544

licensee, a violation of this chapter or the rules of the bureau

5545

division. The bureau division may exclude from any facility of a

5546

slot machine licensee any person who has been ejected from a

5547

facility of a slot machine licensee in this state or who has been

5548

excluded from any facility of a slot machine licensee or gaming

5549

facility in another state by the governmental department, agency,

5550

commission, or authority exercising regulatory jurisdiction over

5551

the gaming in such other state. This section does not abrogate

5552

the common law right of a slot machine licensee to exclude a

5553

patron absolutely in this state.

5554

     Section 90.  Subsections (3) and (5) of section 551.114,

5555

Florida Statutes, are amended to read:

5556

     551.114  Slot machine gaming areas.--

5557

     (3) The bureau division shall require the posting of signs

5558

warning of the risks and dangers of gambling, showing the odds of

5559

winning, and informing patrons of the toll-free telephone number

5560

available to provide information and referral services regarding

5561

compulsive or problem gambling.

5562

     (5)  The permitholder shall provide adequate office space at

5563

no cost to the bureau division and the Division of Licensing and

5564

Department of Law Enforcement for the oversight of slot machine

5565

operations. The bureau division shall adopt rules establishing

5566

the criteria for adequate space, configuration, and location and

5567

needed electronic and technological requirements for office space

5568

required by this subsection.

5569

     Section 91.  Section 551.117, Florida Statutes, is amended

5570

to read:

5571

     551.117 Penalties.--The bureau division may revoke or

5572

suspend any slot machine license issued under this chapter upon

5573

the willful violation by the slot machine licensee of any

5574

provision of this chapter or of any rule adopted under this

5575

chapter. In lieu of suspending or revoking a slot machine

5576

license, the bureau division may impose a civil penalty against

5577

the slot machine licensee for a violation of this chapter or any

5578

rule adopted by the bureau division. Except as otherwise provided

5579

in this chapter, the penalty so imposed may not exceed $100,000

5580

for each count or separate offense. All penalties imposed and

5581

collected must be deposited into the Pari-mutuel Wagering Trust

5582

Fund of the Department of Gaming Control Business and

5583

Professional Regulation.

5584

     Section 92.  Section 551.118, Florida Statutes, is amended

5585

to read:

5586

     551.118  Compulsive or addictive gambling prevention

5587

program.--

5588

     (1)  The slot machine licensee shall offer training to

5589

employees on responsible gaming and shall work with a compulsive

5590

or addictive gambling prevention program to recognize problem

5591

gaming situations and to implement responsible gaming programs

5592

and practices.

5593

     (2) The bureau division shall, subject to competitive

5594

bidding, contract for provision of services related to the

5595

prevention of compulsive and addictive gambling. The contract

5596

shall provide for an advertising program to encourage responsible

5597

gaming practices and to publicize a gambling telephone help line.

5598

Such advertisements must be made both publicly and inside the

5599

designated slot machine gaming areas of the licensee's

5600

facilities. The terms of any contract for the provision of such

5601

services shall include accountability standards that must be met

5602

by any private provider. The failure of any private provider to

5603

meet any material terms of the contract, including the

5604

accountability standards, shall constitute a breach of contract

5605

or grounds for nonrenewal. The bureau division may consult with

5606

the Division Department of the Lottery within the Department of

5607

Gaming Control in the development of the program and the

5608

development and analysis of any procurement for contractual

5609

services for the compulsive or addictive gambling prevention

5610

program.

5611

     (3)  The compulsive or addictive gambling prevention program

5612

shall be funded from an annual nonrefundable regulatory fee of

5613

$250,000 paid by the licensee to the bureau division.

5614

     Section 93.  Paragraph (c) of subsection (4) of section

5615

551.121, Florida Statutes, is amended to read:

5616

     551.121  Prohibited activities and devices; exceptions.--

5617

     (4)

5618

     (c)  Outside the designated slot machine gaming areas, a

5619

slot machine licensee or operator may accept or cash a check for

5620

an employee of the facility who is prohibited from wagering on a

5621

slot machine under s. 551.108(5), a check made directly payable

5622

to a person licensed by the bureau division, or a check made

5623

directly payable to the slot machine licensee or operator from:

5624

     1.  A pari-mutuel patron; or

5625

     2.  A pari-mutuel facility in this state or in another

5626

state.

5627

     Section 94.  Section 551.122, Florida Statutes, is amended

5628

to read:

5629

     551.122 Rulemaking.--The bureau division may adopt rules

5630

pursuant to ss. 120.536(1) and 120.54 to administer the

5631

provisions of this chapter.

5632

     Section 95.  Section 551.123, Florida Statutes, is amended

5633

to read:

5634

     551.123  Legislative authority; administration of

5635

chapter.--The Legislature finds and declares that it has

5636

exclusive authority over the conduct of all wagering occurring at

5637

a slot machine facility in this state. As provided by law, only

5638

the Bureau of Slot Machines division of Pari-mutuel Wagering and

5639

other authorized state agencies shall administer this chapter and

5640

regulate the slot machine gaming industry, including operation of

5641

slot machine facilities, games, slot machines, and facilities-

5642

based computer systems authorized in this chapter and the rules

5643

adopted by the bureau division.

5644

     Section 96.  Section 616.09, Florida Statutes, is amended to

5645

read:

5646

     616.09  Not authorized to carry on gambling, etc.;

5647

forfeiture of charter for violations; annulment

5648

proceedings.--Nothing in This chapter does not shall be held or

5649

construed to authorize or permit any fair association to carry

5650

on, conduct, supervise, permit, or suffer any gambling or game of

5651

chance, lottery, betting, or other act in violation of the

5652

criminal laws of the state; and nothing in this chapter does not

5653

shall permit horseracing or dogracing or any other pari-mutuel

5654

wagering, for money or upon which money is placed. Any fair

5655

association which violates any such law or which knowingly

5656

permits the violation of any such law is subject to forfeiture of

5657

its charter; and if any citizen complains to the Bureau of

5658

Prosecution of the Division of Licensing and Enforcement within

5659

the Department of Gaming Control Department of Legal Affairs that

5660

the association was organized for or is being used as a cover to

5661

evade any of the laws of Florida against crime, and submits prima

5662

facie evidence to sustain the charge, the Bureau of Prosecution

5663

Department of Legal Affairs shall institute, and in due time

5664

prosecute to final judgment, such proceedings as may be necessary

5665

to annul the charter and incorporation of the association. A writ

5666

of injunction or other extraordinary process shall be issued by a

5667

court of competent jurisdiction on the application of the Bureau

5668

of Prosecution Department of Legal Affairs on complaint pending

5669

the annulment proceeding and in aid thereof, and the case shall

5670

be given precedence over all civil cases pending in that court

5671

and shall be heard and disposed of with as little delay as

5672

practicable.

5673

     Section 97.  Subsection (9) of section 616.241, Florida

5674

Statutes, is amended to read:

5675

     616.241  Trade standards for operation at public fairs and

5676

expositions.--Trade standards for the operation of shows or games

5677

in connection with public fairs and expositions are as follows:

5678

     (9)  VIOLATIONS; REPORTING.--Florida law forbids lotteries,

5679

gambling, raffles, and other games of chance at community,

5680

county, district, state, regional, or interstate fairs and

5681

specialized shows. Enforcement is the responsibility of the

5682

Department of Gaming Control local boards and authorities.

5683

     Section 98.  Section 849.086, Florida Statutes, is amended

5684

to read:

5685

     849.086  Cardrooms authorized.--

5686

     (1)  LEGISLATIVE INTENT.--It is the intent of the

5687

Legislature to provide additional entertainment choices for the

5688

residents of and visitors to the state, promote tourism in the

5689

state, and provide additional state revenues through the

5690

authorization of the playing of certain games in the state at

5691

facilities known as cardrooms which are to be located at licensed

5692

pari-mutuel facilities. To ensure the public confidence in the

5693

integrity of authorized cardroom operations, this act is designed

5694

to strictly regulate the facilities, persons, and procedures

5695

related to cardroom operations. Furthermore, the Legislature

5696

finds that authorized games as herein defined are considered to

5697

be pari-mutuel style games and not casino gaming because the

5698

participants play against each other instead of against the

5699

house.

5700

     (2)  DEFINITIONS.--As used in this section:

5701

     (a)  "Authorized game" means a game or series of games of

5702

poker or dominoes which are played in a nonbanking manner.

5703

     (b)  "Banking game" means a game in which the house is a

5704

participant in the game, taking on players, paying winners, and

5705

collecting from losers or in which the cardroom establishes a

5706

bank against which participants play.

5707

     (c)  "Cardroom" means a facility where authorized games are

5708

played for money or anything of value and to which the public is

5709

invited to participate in such games and charged a fee for

5710

participation by the operator of such facility. Authorized games

5711

and cardrooms do not constitute casino gaming operations.

5712

     (d)  "Cardroom management company" means any individual not

5713

an employee of the cardroom operator, any proprietorship,

5714

partnership, corporation, or other entity that enters into an

5715

agreement with a cardroom operator to manage, operate, or

5716

otherwise control the daily operation of a cardroom.

5717

     (e)  "Cardroom distributor" means any business that

5718

distributes cardroom paraphernalia such as card tables, betting

5719

chips, chip holders, dominoes, dominoes tables, drop boxes,

5720

banking supplies, playing cards, card shufflers, and other

5721

associated equipment to authorized cardrooms.

5722

     (f)  "Cardroom operator" means a licensed pari-mutuel

5723

permitholder which holds a valid permit and license issued by the

5724

bureau division pursuant to chapter 550 and which also holds a

5725

valid cardroom license issued by the bureau division pursuant to

5726

this section which authorizes such person to operate a cardroom

5727

and to conduct authorized games in such cardroom.

5728

     (g) "Division" means the Division of Gambling Oversight

5729

Pari-mutuel Wagering of the Department of Gaming Control Business

5730

and Professional Regulation.

5731

     (h)  "Dominoes" means a game of dominoes typically played

5732

with a set of 28 flat rectangular blocks, called "bones," which

5733

are marked on one side and divided into two equal parts, with

5734

zero to six dots, called "pips," in each part. The term also

5735

includes larger sets of blocks that contain a correspondingly

5736

higher number of pips. The term also means the set of blocks used

5737

to play the game.

5738

     (i)  "Gross receipts" means the total amount of money

5739

received by a cardroom from any person for participation in

5740

authorized games.

5741

     (j)  "House" means the cardroom operator and all employees

5742

of the cardroom operator.

5743

     (k)  "Net proceeds" means the total amount of gross receipts

5744

received by a cardroom operator from cardroom operations less

5745

direct operating expenses related to cardroom operations,

5746

including labor costs, admission taxes only if a separate

5747

admission fee is charged for entry to the cardroom facility,

5748

gross receipts taxes imposed on cardroom operators by this

5749

section, the annual cardroom license fees imposed by this section

5750

on each table operated at a cardroom, and reasonable promotional

5751

costs excluding officer and director compensation, interest on

5752

capital debt, legal fees, real estate taxes, bad debts,

5753

contributions or donations, or overhead and depreciation expenses

5754

not directly related to the operation of the cardrooms.

5755

     (l)  "Rake" means a set fee or percentage of the pot

5756

assessed by a cardroom operator for providing the services of a

5757

dealer, table, or location for playing the authorized game.

5758

     (m)  "Tournament" means a series of games that have more

5759

than one betting round involving one or more tables and where the

5760

winners or others receive a prize or cash award.

5761

     (n) "Bureau" means the Bureau of Cardrooms within the

5762

Division of Gambling Oversight of the Department of Gaming

5763

Control.

5764

     (3)  CARDROOM AUTHORIZED.--Notwithstanding any other

5765

provision of law, it is not a crime for a person to participate

5766

in an authorized game at a licensed cardroom or to operate a

5767

cardroom described in this section if such game and cardroom

5768

operation are conducted strictly in accordance with the

5769

provisions of this section.

5770

     (4) AUTHORITY OF BUREAU DIVISION.--The Bureau division of

5771

Cardrooms within the Division of Gambling Oversight Pari-mutuel

5772

Wagering of the Department of Gaming Control Business and

5773

Professional Regulation shall administer this section and

5774

regulate the operation of cardrooms under this section and the

5775

rules adopted pursuant thereto, and is hereby authorized to:

5776

     (a)  Adopt rules, including, but not limited to: the

5777

issuance of cardroom and employee licenses for cardroom

5778

operations; the operation of a cardroom; recordkeeping and

5779

reporting requirements; and the collection of all fees and taxes

5780

imposed by this section.

5781

     (b)  Conduct investigations and monitor the operation of

5782

cardrooms and the playing of authorized games therein.

5783

     (c)  Review the books, accounts, and records of any current

5784

or former cardroom operator.

5785

     (d)  Suspend or revoke any license or permit, after hearing,

5786

for any violation of the provisions of this section or the

5787

administrative rules adopted pursuant thereto.

5788

     (e)  Take testimony, issue summons and subpoenas for any

5789

witness, and issue subpoenas duces tecum in connection with any

5790

matter within its jurisdiction.

5791

     (f)  Monitor and ensure the proper collection of taxes and

5792

fees imposed by this section. Permitholder internal controls are

5793

mandated to ensure no compromise of state funds. To that end, a

5794

roaming bureau division auditor will monitor and verify the cash

5795

flow and accounting of cardroom revenue for any given operating

5796

day.

5797

     (5) LICENSE REQUIRED; APPLICATION; FEES.--A No person may

5798

not operate a cardroom in this state unless the such person holds

5799

a valid cardroom license issued pursuant to this section.

5800

     (a)  Only those persons holding a valid cardroom license

5801

issued by the bureau division may operate a cardroom. A cardroom

5802

license may only be issued to a licensed pari-mutuel permitholder

5803

and an authorized cardroom may only be operated at the same

5804

facility at which the permitholder is authorized under its valid

5805

pari-mutuel wagering permit to conduct pari-mutuel wagering

5806

activities.

5807

     (b)  After the initial cardroom license is granted, the

5808

application for the annual license renewal shall be made in

5809

conjunction with the applicant's annual application for its pari-

5810

mutuel license. If a permitholder has operated a cardroom during

5811

any of the 3 previous fiscal years and fails to include a renewal

5812

request for the operation of the cardroom in its annual

5813

application for license renewal, the permitholder may amend its

5814

annual application to include operation of the cardroom. In order

5815

for a cardroom license to be renewed the applicant must have

5816

requested, as part of its pari-mutuel annual license application,

5817

to conduct at least 90 percent of the total number of live

5818

performances conducted by such permitholder during either the

5819

state fiscal year in which its initial cardroom license was

5820

issued or the state fiscal year immediately prior thereto. If the

5821

application is for a harness permitholder cardroom, the applicant

5822

must have requested authorization to conduct a minimum of 140

5823

live performances during the state fiscal year immediately prior

5824

thereto. If more than one permitholder is operating at a

5825

facility, each permitholder must have applied for a license to

5826

conduct a full schedule of live racing.

5827

     (c)  Persons seeking a license or a renewal thereof to

5828

operate a cardroom shall make application on forms prescribed by

5829

the bureau division. Applications for cardroom licenses shall

5830

contain all of the information the bureau division, by rule, may

5831

determine is required to ensure eligibility.

5832

     (d)  The annual cardroom license fee for each facility shall

5833

be $1,000 for each table to be operated at the cardroom. The

5834

license fee shall be deposited by the bureau division with the

5835

Chief Financial Officer to the credit of the Pari-mutuel Wagering

5836

Trust Fund.

5837

     (6)  BUSINESS AND EMPLOYEE OCCUPATIONAL LICENSE REQUIRED;

5838

APPLICATION; FEES.--

5839

     (a)  A person employed or otherwise working in a cardroom as

5840

a cardroom manager, floor supervisor, pit boss, dealer, or any

5841

other activity related to cardroom operations while the facility

5842

is conducting card playing or games of dominoes must hold a valid

5843

cardroom employee occupational license issued by the bureau

5844

division. Food service, maintenance, and security employees with

5845

a current pari-mutuel occupational license and a current

5846

background check will not be required to have a cardroom employee

5847

occupational license.

5848

     (b)  Any cardroom management company or cardroom distributor

5849

associated with cardroom operations must hold a valid cardroom

5850

business occupational license issued by the bureau division.

5851

     (c) A No licensed cardroom operator may not employ or allow

5852

to work in a cardroom any person unless the such person holds a

5853

valid occupational license. No licensed cardroom operator may

5854

contract, or otherwise do business with, a business required to

5855

hold a valid cardroom business occupational license, unless the

5856

business holds such a valid license.

5857

     (d) The bureau division shall establish, by rule, a

5858

schedule for the annual renewal of cardroom occupational

5859

licenses. Cardroom occupational licenses are not transferable.

5860

     (e)  Persons seeking cardroom occupational licenses, or

5861

renewal thereof, shall make application on forms prescribed by

5862

the bureau division. Applications for cardroom occupational

5863

licenses shall contain all of the information the bureau

5864

division, by rule, may determine is required to ensure

5865

eligibility.

5866

     (f) The bureau division shall adopt promulgate rules

5867

regarding cardroom occupational licenses. The provisions

5868

specified in s. 550.105(4), (5), (6), (7), (8), and (10) relating

5869

to licensure shall be applicable to cardroom occupational

5870

licenses.

5871

     (g) The bureau division may deny, declare ineligible, or

5872

revoke any cardroom occupational license if the applicant or

5873

holder thereof has been found guilty or had adjudication withheld

5874

in this state or any other state, or under the laws of the United

5875

States of a felony or misdemeanor involving forgery, larceny,

5876

extortion, conspiracy to defraud, or filing false reports to a

5877

government agency, racing or gaming commission or authority.

5878

     (h)  Fingerprints for all cardroom occupational license

5879

applications shall be taken in a manner approved by the bureau

5880

division and then shall be submitted to the Florida Department of

5881

Law Enforcement and the Federal Bureau of Investigation for a

5882

criminal records check upon initial application and every 5 years

5883

thereafter. The bureau division may by rule require an annual

5884

record check of all renewal applications for a cardroom

5885

occupational license. The cost of processing fingerprints and

5886

conducting a record check shall be borne by the applicant.

5887

     (i)  The cardroom employee occupational license fee shall be

5888

$50. The cardroom business occupational license fee shall be

5889

$250.

5890

     (7)  CONDITIONS FOR OPERATING A CARDROOM.--

5891

     (a)  A cardroom may be operated only at the location

5892

specified on the cardroom license issued by the bureau division,

5893

and such location may only be the location at which the pari-

5894

mutuel permitholder is authorized to conduct pari-mutuel wagering

5895

activities pursuant to such permitholder's valid pari-mutuel

5896

permit or as otherwise authorized by law.

5897

     (b)  Any horserace, greyhound race, or jai alai permitholder

5898

licensed under this section may operate a cardroom at the pari-

5899

mutuel facility on any day for a cumulative amount of 12 hours if

5900

the permitholder meets the requirements under paragraph (5)(b).

5901

     (c)  A cardroom operator must at all times employ and

5902

provide a nonplaying dealer for each table on which authorized

5903

card games which traditionally use a dealer are conducted at the

5904

cardroom. Such dealers may not have a participatory interest in

5905

any game other than the dealing of cards and may not have an

5906

interest in the outcome of the game. The providing of such

5907

dealers by a licensee does not constitute the conducting of a

5908

banking game by the cardroom operator.

5909

     (d)  A cardroom operator may award giveaways, jackpots, and

5910

prizes to a player who holds certain combinations of cards

5911

specified by the cardroom operator.

5912

     (e)  Each cardroom operator shall conspicuously post upon

5913

the premises of the cardroom a notice which contains a copy of

5914

the cardroom license; a list of authorized games offered by the

5915

cardroom; the wagering limits imposed by the house, if any; any

5916

additional house rules regarding operation of the cardroom or the

5917

playing of any game; and all costs to players to participate,

5918

including any rake by the house. In addition, each cardroom

5919

operator shall post at each table a notice of the minimum and

5920

maximum bets authorized at such table and the fee for

5921

participation in the game conducted.

5922

     (f)  The cardroom facility is subject to inspection by the

5923

bureau division or any law enforcement agency during the

5924

licensee's regular business hours. The inspection must

5925

specifically include the permitholder internal control procedures

5926

approved by the bureau division.

5927

     (g)  A cardroom operator may refuse entry to or refuse to

5928

allow any person who is objectionable, undesirable, or disruptive

5929

to play, but such refusal may not be on the basis of race, creed,

5930

color, religion, gender, national origin, marital status,

5931

physical handicap, or age, except as provided in this section.

5932

     (8)  METHOD OF WAGERS; LIMITATION.--

5933

     (a)  No wagering may be conducted using money or other

5934

negotiable currency. Games may only be played utilizing a

5935

wagering system whereby all players' money is first converted by

5936

the house to tokens or chips which shall be used for wagering

5937

only at that specific cardroom.

5938

     (b)  The cardroom operator may limit the amount wagered in

5939

any game or series of games, but the maximum bet may not exceed

5940

$5 in value. There may not be more than three raises in any round

5941

of betting. The fee charged by the cardroom for participation in

5942

the game shall not be included in the calculation of the

5943

limitation on the bet amount provided in this paragraph. However,

5944

a cardroom operator may conduct games of Texas Hold-em without a

5945

betting limit if the required player buy-in is no more than $100.

5946

     (c)  A tournament shall consist of a series of games. The

5947

entry fee for a tournament, including any re-buys, may not exceed

5948

the maximum amount that could be wagered by a participant in 10

5949

like-kind, nontournament games under paragraph (b). Tournaments

5950

may be played only with tournament chips that are provided to all

5951

participants in exchange for an entry fee and any subsequent re-

5952

buys. All players must receive an equal number of tournament

5953

chips for their entry fee. Tournament chips have no cash value

5954

and represent tournament points only. There is no limitation on

5955

the number of tournament chips that may be used for a bet except

5956

as otherwise determined by the cardroom operator. Tournament

5957

chips may never be redeemed for cash or for any other thing of

5958

value. The distribution of prizes and cash awards must be

5959

determined by the cardroom operator before entry fees are

5960

accepted. For purposes of tournament play only, the term "gross

5961

receipts" means the total amount received by the cardroom

5962

operator for all entry fees, player re-buys, and fees for

5963

participating in the tournament less the total amount paid to the

5964

winners or others as prizes.

5965

     (9)  BOND REQUIRED.--The holder of a cardroom license shall

5966

be financially and otherwise responsible for the operation of the

5967

cardroom and for the conduct of any manager, dealer, or other

5968

employee involved in the operation of the cardroom. Before Prior

5969

to the issuance of a cardroom license, each applicant for such

5970

license shall provide evidence of a surety bond in the amount of

5971

$50,000, payable to the state, furnished by a corporate surety

5972

authorized to do business in the state or evidence that the

5973

licensee's pari-mutuel bond required by s. 550.125 has been

5974

expanded to include the applicant's cardroom operation. The bond

5975

shall guarantee that the cardroom operator will redeem, for cash,

5976

all tokens or chips used in games. Such bond shall be kept in

5977

full force and effect by the operator during the term of the

5978

license.

5979

     (10)  FEE FOR PARTICIPATION.--The cardroom operator may

5980

charge a fee for the right to participate in games conducted at

5981

the cardroom. Such fee may be either a flat fee or hourly rate

5982

for the use of a seat at a table or a rake subject to the posted

5983

maximum amount but may not be based on the amount won by players.

5984

The rake-off, if any, must be made in an obvious manner and

5985

placed in a designated rake area which is clearly visible to all

5986

players. Notice of the amount of the participation fee charged

5987

shall be posted in a conspicuous place in the cardroom and at

5988

each table at all times.

5989

     (11)  RECORDS AND REPORTS.--

5990

     (a)  Each licensee operating a cardroom shall keep and

5991

maintain permanent daily records of its cardroom operation and

5992

shall maintain such records for a period of not less than 3

5993

years. These records shall include all financial transactions and

5994

contain sufficient detail to determine compliance with the

5995

requirements of this section. All records shall be available for

5996

audit and inspection by the bureau division or other law

5997

enforcement agencies during the licensee's regular business

5998

hours. The information required in such records shall be

5999

determined by bureau division rule.

6000

     (b)  Each licensee operating a cardroom shall file with the

6001

bureau division a report containing the required records of such

6002

cardroom operation. Such report shall be filed monthly by

6003

licensees. The required reports shall be submitted on forms

6004

prescribed by the bureau division and shall be due at the same

6005

time as the monthly pari-mutuel reports are due to the bureau

6006

division, and such reports shall contain any additional

6007

information deemed necessary by the bureau division, and the

6008

reports shall be deemed public records once filed.

6009

     (12)  PROHIBITED ACTIVITIES.--

6010

     (a) A No person licensed to operate a cardroom may not

6011

conduct any banking game or any game not specifically authorized

6012

by this section.

6013

     (b) A No person younger than under 18 years of age may not

6014

be permitted to hold a cardroom or employee license, or engage in

6015

any game conducted therein.

6016

     (c) No Electronic or mechanical devices, except mechanical

6017

card shufflers, may not be used to conduct any authorized game in

6018

a cardroom.

6019

     (d) No Cards, game components, or game implements may not

6020

be used in playing an authorized game unless such has been

6021

furnished or provided to the players by the cardroom operator.

6022

     (13)  TAXES AND OTHER PAYMENTS.--

6023

     (a)  Each cardroom operator shall pay a tax to the state of

6024

10 percent of the cardroom operation's monthly gross receipts.

6025

     (b)  An admission tax equal to 15 percent of the admission

6026

charge for entrance to the licensee's cardroom facility, or 10

6027

cents, whichever is greater, is imposed on each person entering

6028

the cardroom. This admission tax shall apply only if a separate

6029

admission fee is charged for entry to the cardroom facility. If a

6030

single admission fee is charged which authorizes entry to both or

6031

either the pari-mutuel facility and the cardroom facility, the

6032

admission tax shall be payable only once and shall be payable

6033

pursuant to chapter 550. The cardroom licensee shall be

6034

responsible for collecting the admission tax. An admission tax is

6035

imposed on any free passes or complimentary cards issued to

6036

guests by licensees in an amount equal to the tax imposed on the

6037

regular and usual admission charge for entrance to the licensee's

6038

cardroom facility. A cardroom licensee may issue tax-free passes

6039

to its officers, officials, and employees or other persons

6040

actually engaged in working at the cardroom, including accredited

6041

press representatives such as reporters and editors, and may also

6042

issue tax-free passes to other cardroom licensees for the use of

6043

their officers and officials. The licensee shall file with the

6044

bureau division a list of all persons to whom tax-free passes are

6045

issued.

6046

     (c)  Payment of the admission tax and gross receipts tax

6047

imposed by this section shall be paid to the bureau division. The

6048

bureau division shall deposit these sums with the Chief Financial

6049

Officer, one-half being credited to the Pari-mutuel Wagering

6050

Trust Fund and one-half being credited to the General Revenue

6051

Fund. The cardroom licensee shall remit to the bureau division

6052

payment for the admission tax, the gross receipts tax, and the

6053

licensee fees. Such payments shall be remitted to the bureau

6054

division on the fifth day of each calendar month for taxes and

6055

fees imposed for the preceding month's cardroom activities.

6056

Licensees shall file a report under oath by the fifth day of each

6057

calendar month for all taxes remitted during the preceding

6058

calendar month. Such report shall, under oath, indicate the total

6059

of all admissions, the cardroom activities for the preceding

6060

calendar month, and such other information as may be prescribed

6061

by the bureau division.

6062

     (d)  Each greyhound and jai alai permitholder that operates

6063

a cardroom facility shall use at least 4 percent of such

6064

permitholder's cardroom monthly gross receipts to supplement

6065

greyhound purses or jai alai prize money, respectively, during

6066

the permitholder's next ensuing pari-mutuel meet. Each

6067

thoroughbred and harness horse racing permitholder that operates

6068

a cardroom facility shall use at least 50 percent of such

6069

permitholder's cardroom monthly net proceeds as follows: 47

6070

percent to supplement purses and 3 percent to supplement

6071

breeders' awards during the permitholder's next ensuing racing

6072

meet.

6073

     (e)  The failure of any licensee to make payments as

6074

prescribed in paragraph (c) is a violation of this section, and

6075

the licensee may be subjected by the bureau division to a civil

6076

penalty of up to $1,000 for each day the tax payment is not

6077

remitted. All penalties imposed and collected shall be deposited

6078

in the General Revenue Fund. If a licensee fails to pay penalties

6079

imposed by order of the bureau division under this subsection,

6080

the bureau division may suspend or revoke the license of the

6081

cardroom operator or deny issuance of any further license to the

6082

cardroom operator.

6083

     (f)  The cardroom shall be deemed an accessory use to a

6084

licensed pari-mutuel operation and, except as provided in chapter

6085

550, a municipality, county, or political subdivision may not

6086

assess or collect any additional license tax, sales tax, or

6087

excise tax on such cardroom operation.

6088

     (g)  All of the moneys deposited in the Pari-mutuel Wagering

6089

Trust Fund, except as set forth in paragraph (h), shall be

6090

utilized and distributed in the manner specified in s. 550.135(1)

6091

and (2). However, cardroom tax revenues shall be kept separate

6092

from pari-mutuel tax revenues and shall not be used for making

6093

the disbursement to counties provided in former s. 550.135(1).

6094

     (h)  One-quarter of the moneys deposited into the Pari-

6095

mutuel Wagering Trust Fund pursuant to paragraph (g) shall, by

6096

October 1 of each year, be distributed to the local government

6097

that approved the cardroom under subsection (16); however, if two

6098

or more pari-mutuel racetracks are located within the same

6099

incorporated municipality, the cardroom funds shall be

6100

distributed to the municipality. If a pari-mutuel facility is

6101

situated in such a manner that it is located in more than one

6102

county, the site of the cardroom facility shall determine the

6103

location for purposes of disbursement of tax revenues under this

6104

paragraph. The bureau division shall, by September 1 of each

6105

year, determine: the amount of taxes deposited into the Pari-

6106

mutuel Wagering Trust Fund pursuant to this section from each

6107

cardroom licensee; the location by county of each cardroom;

6108

whether the cardroom is located in the unincorporated area of the

6109

county or within an incorporated municipality; and, the total

6110

amount to be distributed to each eligible county and

6111

municipality.

6112

     (14)  SUSPENSION, REVOCATION, OR DENIAL OF LICENSE; FINE.--

6113

     (a) The bureau division may deny a license or the renewal

6114

thereof, or may suspend or revoke any license, when the applicant

6115

has: violated or failed to comply with the provisions of this

6116

section or any rules adopted pursuant thereto; knowingly caused,

6117

aided, abetted, or conspired with another to cause any person to

6118

violate this section or any rules adopted pursuant thereto; or

6119

obtained a license or permit by fraud, misrepresentation, or

6120

concealment; or if the holder of such license or permit is no

6121

longer eligible under this section.

6122

     (b)  If a pari-mutuel permitholder's pari-mutuel permit or

6123

license is suspended or revoked by the bureau division pursuant

6124

to chapter 550, the bureau division may, but is not required to,

6125

suspend or revoke such permitholder's cardroom license. If a

6126

cardroom operator's license is suspended or revoked pursuant to

6127

this section, the bureau division may, but is not required to,

6128

suspend or revoke such licensee's pari-mutuel permit or license.

6129

     (c)  Notwithstanding any other provision of this section,

6130

the bureau division may impose an administrative fine not to

6131

exceed $1,000 for each violation against any person who has

6132

violated or failed to comply with the provisions of this section

6133

or any rules adopted pursuant thereto.

6134

     (15)  CRIMINAL PENALTY; INJUNCTION.--

6135

     (a)1.  Any person who operates a cardroom without a valid

6136

license issued as provided in this section commits a felony of

6137

the third degree, punishable as provided in s. 775.082, s.

6138

775.083, or s. 775.084.

6139

     2.  Any licensee or permitholder who violates any provision

6140

of this section commits a misdemeanor of the first degree,

6141

punishable as provided in s. 775.082 or s. 775.083. Any licensee

6142

or permitholder who commits a second or subsequent violation of

6143

the same paragraph or subsection within a period of 3 years from

6144

the date of a prior conviction for a violation of such paragraph

6145

or subsection commits a felony of the third degree, punishable as

6146

provided in s. 775.082, s. 775.083, or s. 775.084.

6147

     (b) The bureau division, any state attorney, the statewide

6148

prosecutor, or the Attorney General may apply for a temporary or

6149

permanent injunction restraining further violation of this

6150

section, and such injunction shall issue without bond.

6151

     (16) LOCAL GOVERNMENT APPROVAL.--The bureau division of

6152

Pari-mutuel Wagering may shall not issue any initial license

6153

under this section except upon proof in such form as the bureau

6154

division may prescribe that the local government where the

6155

applicant for such license desires to conduct cardroom gaming has

6156

voted to approve such activity by a majority vote of the

6157

governing body of the municipality or the governing body of the

6158

county if the facility is not located in a municipality.

6159

     (17)  CHANGE OF LOCATION; REFERENDUM.--

6160

     (a)  Notwithstanding any provisions of this section, no

6161

cardroom gaming license issued under this section shall be

6162

transferred, or reissued when such reissuance is in the nature of

6163

a transfer, so as to permit or authorize a licensee to change the

6164

location of the cardroom except upon proof in such form as the

6165

bureau division may prescribe that a referendum election has been

6166

held:

6167

     1.  If the proposed new location is within the same county

6168

as the already licensed location, in the county where the

6169

licensee desires to conduct cardroom gaming and that a majority

6170

of the electors voting on the question in such election voted in

6171

favor of the transfer of such license. However, the bureau

6172

division shall transfer, without requirement of a referendum

6173

election, the cardroom license of any permitholder that relocated

6174

its permit pursuant to s. 550.0555.

6175

     2.  If the proposed new location is not within the same

6176

county as the already licensed location, in the county where the

6177

licensee desires to conduct cardroom gaming and that a majority

6178

of the electors voting on that question in each such election

6179

voted in favor of the transfer of such license.

6180

     (b)  The expense of each referendum held under the

6181

provisions of this subsection shall be borne by the licensee

6182

requesting the transfer.

6183

     Section 99.  Subsection (10) of section 849.094, Florida

6184

Statutes, is amended to read:

6185

     849.094  Game promotion in connection with sale of consumer

6186

products or services.--

6187

     (10)  This section does not apply to actions or transactions

6188

regulated by the Department of Gaming Control Business and

6189

Professional Regulation or to the activities of nonprofit

6190

organizations or to any other organization engaged in any

6191

enterprise other than the sale of consumer products or services.

6192

Subsections (3), (4), (5), (6), and (7) and paragraph (8)(a) and

6193

any of the rules made pursuant thereto do not apply to television

6194

or radio broadcasting companies licensed by the Federal

6195

Communications Commission.

6196

     Section 100.  Section 849.161, Florida Statutes, is amended

6197

to read:

6198

     849.161  Amusement games or machines; when chapter

6199

inapplicable.--

6200

     (1)(a)1. Nothing contained in This chapter does not apply

6201

shall be taken or construed as applicable to an arcade amusement

6202

center or any retail dealer who operates as a truck stop,

6203

operates a minimum of six functional diesel fuel pumps, and has

6204

having amusement games or machines that which operate by means of

6205

the insertion of a coin or other currency and that which by

6206

application of skill may entitle the person playing or operating

6207

the game or machine to receive points or coupons that which may

6208

be exchanged for merchandise limited to noncash prizes, toys,

6209

novelties, and Florida lottery products only, excluding cash and

6210

alcoholic beverages, provided the cost value of the merchandise

6211

or prize awarded in exchange for such points or coupons does not

6212

exceed 75 cents on any game played.

6213

     2. Nothing contained in this chapter shall be taken or

6214

construed as applicable to any retail dealer who operates as a

6215

truck stop, as defined in chapter 336 and which operates a

6216

minimum of 6 functional diesel fuel pumps, having amusement games

6217

or machines which operate by means of the insertion of a coin or

6218

other currency and which by application of skill may entitle the

6219

person playing or operating the game or machine to receive points

6220

or coupons which may be exchanged for merchandise limited to

6221

noncash prizes, toys, novelties, and Florida Lottery products,

6222

excluding alcoholic beverages, provided the cost value of the

6223

merchandise or prize awarded in exchange for such points or

6224

coupons does not exceed 75 cents on any game played. This

6225

paragraph subparagraph applies only to games and machines that

6226

which are operated for the entertainment of the general public

6227

and tourists as bona fide amusement games or machines. This

6228

subsection does shall not apply, however, to any game or device

6229

defined as a gambling device in 24 U.S.C. s. 1171, which requires

6230

identification of each device by permanently affixing seriatim

6231

numbering and name, trade name, and date of manufacture under s.

6232

1173, and registration with the United States Attorney General,

6233

unless excluded from applicability of the chapter under s. 1178.

6234

This subsection does shall not be construed to authorize video

6235

poker games or any other game or machine that may be construed as

6236

a gambling device under Florida law.

6237

     (b) Nothing in This subsection does not apply shall be

6238

taken or construed as applicable to a coin-operated game or

6239

device designed and manufactured only for bona fide amusement

6240

purposes which game or device may by application of skill entitle

6241

the player to replay the game or device at no additional cost, if

6242

the game or device: can accumulate and react to no more than 15

6243

free replays; can be discharged of accumulated free replays only

6244

by reactivating the game or device for one additional play for

6245

such accumulated free replay; can make no permanent record,

6246

directly or indirectly, of free replays; and is not classified by

6247

the United States as a gambling device in 24 U.S.C. s. 1171,

6248

which requires identification of each device by permanently

6249

affixing seriatim numbering and name, trade name, and date of

6250

manufacture under s. 1173, and registration with the United

6251

States Attorney General, unless excluded from applicability of

6252

the chapter under s. 1178. This subsection does shall not be

6253

construed to authorize video poker games, or any other game or

6254

machine that may be construed as a gambling device under Florida

6255

law.

6256

     (2) As used in this section, the term:

6257

(a) "Arcade amusement center" as used in this section means

6258

a place of business licensed by the department having at least 50

6259

coin-operated amusement games or machines on premises which are

6260

operated for the entertainment of the general public and tourists

6261

as a bona fide amusement facility.

6262

     (b) "Application of skill" means that the playing public

6263

may attain, through the exercise of skill or judgment, a better

6264

measure of success in playing the game than could be

6265

mathematically expected on the basis of random chance alone.

6266

     (c) "Department" means the Department of Gaming Control.

6267

     (3) The department shall adopt, pursuant to ss. 120.536(1)

6268

and 120.54, all rules necessary to implement, administer, and

6269

regulate skill-based gaming as authorized in this section. Such

6270

rules must include:

6271

     (a) Technical requirements, qualifications, and procedures

6272

necessary to receive a skill-based gaming license.

6273

     (b) Procedures to scientifically test and technically

6274

evaluate skill-based machines for compliance with this chapter.

6275

The division may contract with an independent testing laboratory

6276

to conduct any necessary testing under this section. The

6277

independent testing laboratory must have a national reputation

6278

for testing skill-based machines, and be demonstrably competent

6279

and qualified to scientifically test and evaluate slot machines

6280

for compliance with this chapter and to otherwise perform the

6281

functions assigned to it in this chapter. A licensee may not own

6282

or control an independent testing laboratory. The use of an

6283

independent testing laboratory for any purpose related to the

6284

conduct of skill-based gaming by a licensee under this section

6285

shall be made from a list of one or more laboratories approved by

6286

the division.

6287

     (c) Procedures relating to machine revenues, including

6288

verifying and accounting for such revenues, auditing, and

6289

collecting taxes and fees consistent with this section.

6290

     (d) Procedures for regulating, managing, and auditing the

6291

operation, financial data, and program information relating to

6292

skill-based machine gaming which allow the department to audit

6293

the operation, financial data, and program information of a slot

6294

machine licensee, as required by the department, and provide the

6295

department with the ability to monitor, at any time on a real-

6296

time basis, wagering patterns, payouts, tax collection, and

6297

compliance with any rules adopted by the department for the

6298

regulation and control of machines operated under this section.

6299

     (e) Procedures for requiring licensees to maintain

6300

specified records and submit any data, information, record, or

6301

report, including financial and income records, required by this

6302

chapter or determined by the division to be necessary to the

6303

proper implementation and enforcement of this chapter.

6304

     (f) Minimum standards for security of the facilities.

6305

     (4) The department shall conduct such investigations

6306

necessary to fulfill its responsibilities under the provisions of

6307

this section.

6308

     (5) The department and local law enforcement agencies shall

6309

have concurrent jurisdiction to investigate criminal violations

6310

of this chapter and may investigate any other criminal violation

6311

of law occurring at the facilities of a licensee, and such

6312

investigations may be conducted in conjunction with the

6313

appropriate state attorney.

6314

     (6)(a) The department and local law enforcement agencies

6315

shall have unrestricted access to a licensee's facility at all

6316

times and shall require of each licensee strict compliance with

6317

the laws of this state relating to the transaction of such

6318

business. The department and local law enforcement agencies may:

6319

     1. Inspect and examine premises where skill-based machines

6320

are offered for play.

6321

     2. Inspect skill-based machines and related equipment and

6322

supplies.

6323

     (b) In addition, the department may:

6324

     1. Collect taxes, assessments, fees, and penalties.

6325

     2. Deny, revoke, suspend, or place conditions on the

6326

license of a person who violates any provision of this chapter or

6327

rule adopted pursuant thereto.

6328

     3. Revoke or suspend the license of any person who is no

6329

longer qualified or who is found, after receiving a license, to

6330

have been unqualified at the time of application for the license.

6331

     (7) This section does not:

6332

     (a) Prohibit the department or any law enforcement

6333

authority from conducting investigations of criminal activities

6334

occurring at the facility of a licensee;

6335

     (b) Restrict access to the licensee's facility by the

6336

department or any law enforcement authority; or

6337

     (c) Restrict access by the department or law enforcement

6338

authorities to information and records necessary to the

6339

investigation of criminal activity which are contained within the

6340

licensee's facility.

6341

     (8)(a) Upon submission of the initial application for a

6342

skill-based machine operator and annually thereafter, on the

6343

anniversary date of the issuance of the initial license, the

6344

operator shall pay to the Division of Licensing and Enforcement a

6345

nonrefundable license fee to be determined by the division for

6346

the following 12 months of licensure. The license fee shall be

6347

deposited into the Pari-mutuel Wagering Trust Fund of the

6348

department to be used for investigations, regulation of the

6349

machines, and enforcement of the provisions under this chapter.

6350

These payments shall be accounted for separately from taxes or

6351

fees paid pursuant to chapter 550.

6352

     (b) Before January 1, 2009, the Division of Licensing and

6353

Enforcement shall evaluate the license fee and shall make

6354

recommendations to the President of the Senate and the Speaker of

6355

the House of Representatives regarding the optimum level of

6356

operator license fees in order to adequately support the

6357

regulatory program.

6358

     (9)(a) The tax rate on skill-based machine revenues at each

6359

facility shall be 15 percent.

6360

     (b) The tax imposed by this section shall be paid to the

6361

department for deposit into the Florida Gaming Trust Fund and

6362

subject to annual appropriation by the Legislature.

6363

     (10) The slot machine licensee shall remit to the Division

6364

of Licensing and Enforcement payment for the tax on slot machine

6365

revenues. Such payments shall be remitted by 3 p.m. Wednesday of

6366

each week for taxes imposed and collected for the preceding week

6367

ending on Sunday. The operator shall file a report under oath by

6368

the 5th day of each calendar month for all taxes remitted during

6369

the preceding calendar month. Such payments shall be accompanied

6370

by a report under oath showing all machine activities for the

6371

preceding calendar month and such other information as may be

6372

prescribed by the Division of Licensing and Enforcement.

6373

     (11) An operator who fails to make tax payments as required

6374

under this section is subject to an administrative penalty of up

6375

to $10,000 for each day the tax payment is not remitted. All

6376

administrative penalties imposed and collected shall be deposited

6377

into the Florida Gaming Trust Fund. If any slot machine licensee

6378

fails to pay penalties imposed by order of the Division of

6379

Licensing and Enforcement under this subsection, the division may

6380

suspend, revoke, or refuse to renew the license of the slot

6381

machine licensee.

6382

     (12) The Division of Licensing and Enforcement may require

6383

operators to remit taxes, fees, fines, and assessments by

6384

electronic funds transfer.

6385

     Section 101.  Subsection (7) of section 943.0311, Florida

6386

Statutes, is amended to read:

6387

     943.0311  Chief of Domestic Security; duties of the

6388

department with respect to domestic security.--

6389

     (7)  As used in this section, the term "state agency"

6390

includes the Agency for Health Care Administration, the Agency

6391

for Workforce Innovation, the Department of Agriculture and

6392

Consumer Services, the Department of Business and Professional

6393

Regulation, the Department of Children and Family Services, the

6394

Department of Citrus, the Department of Community Affairs, the

6395

Department of Corrections, the Department of Education, the

6396

Department of Elderly Affairs, the Department of Environmental

6397

Protection, the Department of Financial Services, the Department

6398

of Health, the Department of Highway Safety and Motor Vehicles,

6399

the Department of Juvenile Justice, the Department of Law

6400

Enforcement, the Department of Legal Affairs, the Department of

6401

Management Services, the Department of Military Affairs, the

6402

Department of Revenue, the Department of State, the Department of

6403

Gaming Control the Lottery, the Department of Transportation, the

6404

Department of Veterans' Affairs, the Fish and Wildlife

6405

Conservation Commission, the Parole Commission, the State Board

6406

of Administration, and the Executive Office of the Governor.

6407

     Section 102.  This act shall take effect July 1, 2008, if SB

6408

____, or similar legislation creating the Florida Gaming Trust

6409

Fund, is adopted in the same legislative session or an extension

6410

thereof and becomes law.

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