Florida Senate - 2008 SB 1380
By Senators Jones and King
13-02934B-08 20081380__
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A bill to be entitled
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An act relating to electronic gaming machines; authorizing
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electronic gaming machines in certain pari-mutuel
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facilities; providing definitions; providing powers and
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duties of the Division of Pari-mutuel Wagering of the
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Department of Business and Professional Regulation and the
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Department of Law Enforcement; providing for rules;
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providing for licenses to conduct electronic gaming;
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providing for temporary licenses; providing for renewal of
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electronic gaming machine licenses; providing for license
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fees; providing for taxes; providing penalties; providing
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for occupational licenses; providing findings; providing
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for applications; providing for a fee; prohibiting certain
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relationships; prohibiting certain acts; providing
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penalties; providing for legality of electronic gaming
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machines; providing for exclusion of certain persons from
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the facilities; prohibiting persons under 21 years of age
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from operating electronic gaming machines; providing for
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electronic gaming machine areas within licensed gaming
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locations; providing for days and hours of operation of
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eligible facilities; providing for a compulsive-gambling-
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prevention program; providing penalties; providing for a
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caterer's license for food service at gambling
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establishments; prohibiting certain activities and
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devices; providing exceptions; providing for rules;
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providing for regulatory preemption to the state;
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providing exceptions to s. 849.0931, F.S.; amending s.
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215.22, F.S.; exempting taxes imposed on electronic gaming
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and electronic gaming machine revenue from specified
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service charges; amending s. 849.15, F.S.; providing for
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transportation of electronic gaming devices in accordance
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with federal law; amending s. 895.02, F.S.; providing that
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specified violations related to electronic gaming and
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electronic gaming machines constitute racketeering
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activity; providing that certain debt incurred in
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violation of specified provisions relating to electronic
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gaming and electronic gaming machines constitutes unlawful
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debt; authorizing additional positions and providing
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appropriations; providing for the use of certain
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unreserved funds in the Pari-mutuel Wagering Trust Fund;
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providing for repayment of such funds; 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. Electronic gaming machines authorized.--Any
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licensed pari-mutuel facility may possess electronic gaming
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machines and operate electronic gaming machines at an eligible
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facility, as defined by this act, where the pari-mutuel
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permitholder is authorized to conduct pari-mutuel wagering
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activities pursuant to a valid pari-mutuel permit.
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Notwithstanding any other provision of law, it is not a crime for
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a person to participate in electronic gaming at a pari-mutuel
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facility licensed to possess electronic gaming machines or to
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operate electronic gaming machines as described in this act.
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Section 2. Definitions.--As used in this act, the term:
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(1) "Bingo or game of bingo" means the game of chance
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commonly known as "bingo" whether or not electronic, computer, or
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other technological aids are used in connection therewith. Such
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aids may include the use of entertainment displays, including
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spinning reels, video displays of reels, associated bonus
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displays, and video poker. In order for a game of bingo to take
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place, at least two live players must be competing for a common
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prize. As such, player gaming machines that contain the game of
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chance commonly known as "bingo" may not be house-banked games
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and may not be electronic or electromechanical facsimiles of any
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game of chance. Bingo consists of players competing against other
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players for prizes resulting from a random draw or electronic
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determination and release or announcement of numbers or other
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designations necessary to form the predesignated game-winning
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pattern on an electronic bingo card. A game ends when a
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participating player receives a predesignated game-winning
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pattern and consolation prizes, if any, are awarded.
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(2) "Bonus prize" means a prize awarded in a bingo game in
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addition to the game-winning prize. The bonus prize may be based
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on different predesignated and preannounced patterns from the
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game-winning pattern, on achieving a winning pattern in a
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specified quantity of numbers or designations drawn or
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electronically determined and released, or on any combination of
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these conditions. A bonus prize may be awarded as an interim
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prize while players are competing for the game-winning prize or
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as a consolation prize after a player has won the game-winning
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prize.
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(3) "Designated electronic gaming machine area" means any
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area of a facility of an electronic gaming machine licensee in
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which electronic gaming may be conducted in accordance with this
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act.
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(4) "Distributor" means any person who sells, leases,
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offers, or otherwise provides, distributes, or services any
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electronic gaming machine or associated equipment, software, or
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other functions required for use or play of electronic gaming
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machines in this state. A manufacturer may be a distributor
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within the state.
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(5) "Division" means the Division of Pari-mutuel Wagering
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of the Department of Business and Professional Regulation.
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(6) "Electronic game" means an electronically simulated
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game involving any element of chance, skill, or both, played on
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an electronic gaming machine that, upon insertion of a ticket or
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electronic card, is available to play or simulate a game of bingo
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played on a network of electronic gaming machines. Electronic
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gaming machines simulating the game of bingo may not be house-
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banked. Bonus prizes and progressive prizes may be awarded to
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players at any licensed facility, and a player may receive a
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payoff in the form of tickets that may be exchanged for cash,
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merchandise, or other items of value.
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(7) "Electronic gaming machine" means a player station,
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machine, or device, including associated equipment that is
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required to operate the player station, machine, or device, upon
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which an electronic gaming machine is played or operated. An
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electronic game may not be an electronic facsimile of any game of
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chance, but may use spinning reels, video displays, video poker,
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or other similar technologies available now or in the future to
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convey outcomes to a player if the results displayed at the
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gaming machine are based upon simulated bingo game play, as
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approved by the department. An electronic gaming machine must
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display one or more bingo cards to be used in the game before
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numbers or other designations for the game are randomly drawn.
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Any card in use by a player must be visible to the player during
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game play. All electronic gaming machines must be directly linked
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to a central computer for purposes of security, monitoring, and
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auditing. The central computer may not limit a facility's ability
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to deploy its electronic player tracking or electronic gaming
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accounting system. However, such systems must use a widely
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accepted open communications protocol to ensure interoperability
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among all manufacturers and to provide a player with the ability
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to seamlessly alternate play between the electronic gaming
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machines and electronic gaming machines of different licensed
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manufacturers. An electronic gaming machine is not a coin-
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operated amusement machine as defined in s. 212.02, Florida
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Statutes, and does not include an amusement game or machine as
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described in s. 849.161, Florida Statutes.
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(8) "Electronic gaming machine facility" means an eligible
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facility at which electronic gaming machines are lawfully offered
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for play.
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(9) "Electronic gaming machine license" means a license
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issued by the division authorizing a pari-mutuel permitholder to
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place and operate electronic gaming machines in an eligible
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facility.
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(10) "Electronic gaming machine revenues" means all cash
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and property, except nonredeemable credits, received by the
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electronic gaming machine licensee from the operation of
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electronic gaming machines, less the amount of cash, cash
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equivalents, credits, and prizes paid to winners of electronic
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games.
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(11) "Eligible facility" means any licensed pari-mutuel
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facility at which a full schedule of live racing or games, as
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defined in s. 550.002(11), Florida Statutes, including races or
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games under s. 550.475, Florida Statutes, and rebroadcasts of
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horse races under s. 550.6308, Florida Statutes, was conducted
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during calendar year 2007 and which is not a slot machine
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facility under chapter 551, Florida Statutes. A pari-mutuel
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facility may become an eligible facility if it meets the
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requirements of this subsection for the preceding 3 calendar
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years prior to submitting an application to conduct electronic
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gaming machines.
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(12) "Game-winning pattern" means a predetermined pattern
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on an electronic bingo card. Each game must have one game-winning
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pattern or arrangement that must be common to all players and may
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be won by multiple players simultaneously. A game-winning prize
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must be awarded in every game. The pattern designated as the
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game-winning pattern need not pay the highest prize available in
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the game. Other patterns may be designated for the award of bonus
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prizes in addition to the prize to be awarded based on the game-
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winning pattern.
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(13) "Manufacturer" means any person who manufactures,
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builds, rebuilds, fabricates, assembles, produces, programs,
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designs, or modifies any electronic gaming machine or associated
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equipment for use or play in this state for gaming purposes. A
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manufacturer may be a distributor within the state.
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(14) "Nonredeemable credits" means electronic gaming
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machine operating credits that cannot be redeemed for cash or any
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other thing of value by an electronic gaming machine, kiosk, or
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the electronic gaming machine licensee and that are provided free
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to patrons. Such credits are not nonredeemable credits until they
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are metered as credit into an electronic gaming machine and
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recorded in the facility-based monitoring system.
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(15) "Progressive prize" means an established prize for a
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bingo game, funded by a percentage of each player's purchase or
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wager within one or more licensed facilities for a specific
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progressive bingo game, which is awarded to a player for
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obtaining a specific predesignated and preannounced pattern
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having a specified quantity of numbers or designations randomly
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drawn and released or electronically determined or randomly drawn
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and released or electronically determined in a specified
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sequence. The progressive prize must be rolled over to each
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subsequent specific progressive bingo game until it is won.
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Section 3. Powers and duties of the division and the
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Department of Law Enforcement.?-
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(1) The division shall adopt, pursuant to ss. 120.536(1)
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and 120.54, Florida Statutes, rules necessary to administer the
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operation of electronic gaming machines in this state. The rules
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must include:
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(a) Procedures for applying for and renewing electronic
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gaming machine licenses.
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(b) Technical requirements and qualifications to receive an
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electronic gaming machine license or electronic gaming machine
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occupational license.
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(c) Procedures to scientifically test and technically
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evaluate electronic gaming machines for compliance with this act.
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The division may contract with an independent testing laboratory
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to conduct any necessary testing. The independent testing
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laboratory must have a national reputation indicating that it is
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demonstrably competent and qualified to scientifically test and
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evaluate electronic games and electronic gaming machines and to
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perform the functions required by this act. An independent
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testing laboratory may not be owned or controlled by a licensee.
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The selection of an independent testing laboratory for any
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purpose related to the conduct of electronic gaming machines by a
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licensee shall be made from a list of laboratories approved by
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the division.
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(d) Procedures relating to electronic gaming machine
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revenues, including verifying and accounting for such revenues,
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auditing, and collecting taxes and fees.
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(e)1. Procedures for regulating, managing, and auditing the
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operation, financial data, and program information relating to
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electronic gaming machines that enable the division and the
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Department of Law Enforcement to audit the operation, financial
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data, and program information of an electronic gaming machine
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licensee required by the division or the Department of Law
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Enforcement.
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2. Procedures to allow the division and the Department of
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Law Enforcement to monitor, at any time on a real-time basis,
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wagering patterns, payouts, tax collection, and compliance with
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division rules, including the ability of the division or the
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Department of Law Enforcement to suspend play immediately on
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particular electronic gaming machines if such monitoring
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indicates possible tampering with or manipulation of the
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electronic gaming machines or the ability to immediately suspend
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play of the entire operation if the tampering or manipulation is
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of the computer system. The division shall notify the Department
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of Law Enforcement or the Department of Law Enforcement shall
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notify the division, as appropriate, when there is a suspension
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of play under this paragraph. The division and the Department of
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Law Enforcement shall exchange information that is necessary for
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and cooperate in the investigation of the circumstances requiring
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suspension of play.
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(f) Procedures to require each licensee, at the licensee's
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expense, to supply the division a bond having the penal sum of $2
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million payable to the Governor for each year of the licensee's
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electronic gaming machine operations. Any bond shall be issued by
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a surety approved by the division and the Chief Financial
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Officer, conditioned to pay the Chief Financial Officer as
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treasurer of the division. The licensee must keep its books and
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records and make reports as provided in this act and conduct
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electronic gaming machine operations in conformity with this act
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and other provisions of law. Such bond shall be separate from the
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bond required in s. 550.125, Florida Statutes.
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(g) Procedures to require licensees to maintain specified
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records and submit any data, information, record, or report,
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including financial and income records, required by this act or
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determined by the division to be necessary.
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(h) A requirement that the payout percentage of an
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electronic gaming machine be no less than 85 percent, determined
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using standard methods of probability theory.
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(i) Minimum standards for security of the facilities,
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including floor plans, security cameras, and other security
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equipment.
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(j) Procedures to require electronic gaming machine
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licensees to implement and establish drug-testing programs for
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all electronic gaming machine occupational licensees.
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(2) The division shall conduct investigations necessary to
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fulfill its responsibilities.
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(3) The Department of Law Enforcement and local law
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enforcement agencies have concurrent jurisdiction to investigate
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criminal violations of this act and may investigate any other
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criminal violation of law occurring at the facilities of an
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electronic gaming machine licensee. Such investigations may be
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conducted in conjunction with the appropriate state attorney.
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(4)(a) The division, the Department of Law Enforcement, and
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local law enforcement agencies have unrestricted access to an
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electronic gaming machine licensee's facility at all times and
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shall require each electronic gaming machine licensee to strictly
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comply with the laws of this state relating to the transaction of
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such business. The division, the Department of Law Enforcement,
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and local law enforcement agencies may:
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1. Inspect and examine premises where electronic gaming
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machines are offered for play.
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2. Inspect electronic gaming machines and related equipment
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and supplies.
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(b) In addition, the division may:
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1. Collect taxes, assessments, fees, and penalties.
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2. Deny, revoke, suspend, or place conditions on the
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license of a person who violates this act or rules adopted
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pursuant thereto.
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(5) The division shall revoke or suspend the license of any
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person who is no longer qualified or who is found, after
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receiving a license, to have been unqualified at the time of
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application for the license.
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(6) This section does not:
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(a) Prohibit the Department of Law Enforcement or any law
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enforcement authority whose jurisdiction includes a licensed
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facility from conducting investigations of criminal activities
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occurring at the facility;
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(b) Restrict access to an electronic gaming machine
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licensee's facility by the Department of Law Enforcement or any
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local law enforcement authority whose jurisdiction includes the
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electronic gaming machine licensee's facility; or
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(c) Restrict access by the Department of Law Enforcement or
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local law enforcement authorities to information and records
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necessary to the investigation of criminal activity which are
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contained within the electronic gaming machine licensee's
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facility.
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Section 4. License to conduct electronic gaming.--
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(1) Upon application and a finding by the division after
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investigation that the application is complete and the applicant
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is qualified and payment of the initial license fee, the division
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may issue a license to conduct electronic gaming in any
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designated electronic gaming machine area of an eligible
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facility.
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(2) An electronic gaming machine license may be issued only
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to a licensed pari-mutuel permitholder, and electronic gaming may
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be operated only at the eligible facility at which the
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permitholder is authorized under its pari-mutuel wagering permit
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to conduct pari-mutuel wagering activities.
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(3) As a condition of licensure and to maintain continued
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authority for the conduct of electronic gaming machines, an
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electronic gaming machine licensee shall:
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(a) Continue to comply with this act.
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(b) Continue to comply with chapter 550, Florida Statutes,
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where applicable, and maintain the pari-mutuel permit and license
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in good standing pursuant to chapter 550, Florida Statutes.
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Notwithstanding any contrary provision of law, a pari-mutuel
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permitholder may, within 60 days after the effective date of this
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act, amend its pari-mutuel wagering operating license. The
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division shall issue a new license to the permitholder to
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effectuate any approved change.
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(c) Conduct no fewer than a full schedule of live racing or
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games as defined in s. 550.002(11), Florida Statutes, including
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conducting races or games under s. 550.475, Florida Statutes, or
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be authorized to receive broadcasts or horse races under s.
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550.6308, Florida Statutes, at the eligible facility. A
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permitholder's responsibility to conduct such number of live
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races or games shall be reduced by the number of races or games
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that could not be conducted due to the direct result of fire,
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war, hurricane, or other disaster or event beyond the control of
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the permitholder.
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(d) Upon approval of any changes relating to the pari-
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mutuel permit by the division, provide appropriate current and
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accurate documentation, on a timely basis, to the division to
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maintain the electronic gaming machine license. Changes in
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ownership or interest in an electronic gaming machine license of
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5 percent or more of the stock or other evidence of ownership or
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equity in the electronic gaming machine license or of any parent
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corporation or other business entity that owns or controls the
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electronic gaming machine license must be approved by the
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division prior to such change, unless the owner is an existing
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holder of the license who was previously approved by the
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division. Any changes in ownership or interest in an electronic
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gaming machine license of less than 5 percent, unless such change
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results in a cumulative total of 5 percent or more, shall be
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reported to the division within 20 days after the change. The
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division may conduct an investigation to ensure that the license
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is properly updated to show the change in ownership or interest.
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Reporting is not required if the person is holding 5 percent or
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less equity or securities of a corporate owner of the electronic
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gaming machine licensee that has its securities registered
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pursuant to section 12 of the Securities Exchange Act of 1934, 15
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U.S.C. ss. 78a-78kk, and if such corporation or entity files with
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the United States Securities and Exchange Commission the reports
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required by section 13 of that act or if the securities of the
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corporation or entity are regularly traded on an established
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securities market in the United States. A change in ownership or
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interest of less than 5 percent which results in a cumulative
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ownership or interest of 5 percent or more must be approved by
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the division prior to such change unless the owner is an existing
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holder of the license who was previously approved by the
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division.
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(e) Allow the division and the Department of Law
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Enforcement unrestricted access to and right of inspection of
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facilities of an electronic gaming machine licensee in which any
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activity relative to the operation of electronic gaming machines
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is conducted.
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(f) Ensure that the computer system that the licensee will
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use for operational and accounting functions of the electronic
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gaming machine facility is specifically structured to facilitate
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regulatory oversight. The computer system shall be designed to
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give the division and the Department of Law Enforcement the
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ability to monitor, at any time, the wagering patterns, payouts,
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tax collection, and such other operations as are necessary to
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determine whether the facility is in compliance with statutory
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provisions and rules adopted by the division for the regulation
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and control of electronic gaming machines. The division and the
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Department of Law Enforcement shall have continuous access to
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this system, including the ability of the division or the
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Department of Law Enforcement to suspend play immediately on
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particular electronic gaming machines if monitoring of the system
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indicates possible tampering with or manipulation of those
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electronic gaming machines or the ability to immediately suspend
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play of the entire operation if the tampering or manipulation is
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of the computer system. The computer system shall be reviewed and
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approved by the division to ensure necessary access, security,
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and functionality. The division may adopt rules to provide for
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the approval process.
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(g) Ensure that each electronic gaming machine and game is
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protected from manipulation or tampering to affect the random
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probabilities of winning plays. The division or the Department of
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Law Enforcement may suspend play upon reasonable suspicion of any
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manipulation or tampering. When play has been suspended on any
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electronic gaming machine, the division or the Department of Law
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Enforcement may examine any electronic gaming machine to
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determine whether the machine has been tampered with or
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manipulated and whether the machine should be returned to
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operation.
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(h) Submit a security plan, including the facilities' floor
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plans, the locations of security cameras, and a listing of all
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security equipment that is capable of observing and
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electronically recording activities being conducted in the
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facilities of the electronic gaming machine licensee. The
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security plan must meet the minimum security requirements as
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determined by the division under this act, and be implemented
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prior to operation of electronic gaming machine games. The
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electronic gaming machine licensee's facilities must adhere to
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the security plan at all times. Any changes to the security plan
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must be submitted by the licensee to the division before they are
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implemented. The division shall furnish copies of the security
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plan and changes in the plan to the Department of Law
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Enforcement.
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(i) Create and file with the division a written policy for:
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1. Creating opportunities to purchase from vendors in this
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state, including minority vendors.
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2. Creating opportunities for employment of residents of
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this state, including minority residents.
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3. Ensuring opportunities for construction services from
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minority contractors.
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4. Ensuring that opportunities for employment are offered
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on an equal, nondiscriminatory basis.
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5. Training for employees on responsible gaming and working
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with a compulsive or addictive gambling prevention program to
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further its purposes as provided for in this act.
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6. The implementation of a drug-testing program that
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includes requiring each employee to sign an agreement that he or
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she understands that the electronic gaming machine facility is a
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drug-free workplace.
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The electronic gaming machine licensee shall use the Internet-
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based job-listing system of the Agency for Workforce Innovation
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in advertising employment opportunities. Beginning in June 2009,
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each electronic gaming machine licensee shall submit an annual
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report to the division containing information indicating
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compliance with this paragraph in regard to minority persons.
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(j) Ensure that the payout percentage of an electronic
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gaming machine is no less than 85 percent, using standard methods
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of probability theory.
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(5) An electronic gaming machine license is not
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transferable.
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(6) An electronic gaming machine licensee shall keep and
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maintain permanent daily records of its electronic gaming machine
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operation and shall maintain such records for a period of not
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less than 5 years. These records must include all financial
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transactions and contain sufficient detail to determine
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compliance with this act. All records shall be available for
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audit and inspection by the division, the Department of Law
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Enforcement, or other law enforcement agencies during the
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licensee's regular business hours.
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(7) An electronic gaming machine licensee shall file with
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the division a monthly report containing the required records of
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such electronic gaming machine operation. The required reports
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shall be submitted on forms prescribed by the division and shall
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be due at the same time as the monthly pari-mutuel reports are
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due. Such reports are public records once filed.
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(8) An electronic gaming machine licensee shall file with
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the division an audit of the receipt and distribution of all
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electronic gaming machine revenues provided by an independent
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certified public accountant verifying compliance with all
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financial and auditing provisions of this act and rules adopted
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under this act. The audit must include verification of compliance
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with all statutes and rules regarding all required records of
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electronic gaming machine operations. Such audit shall be filed
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within 60 days after the completion of the permitholder's pari-
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mutuel meet.
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(9) The division may share any information with the
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Department of Law Enforcement, any other law enforcement agency
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with jurisdiction over electronic gaming machines or pari-mutuel
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activities, or any other state or federal law enforcement agency
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the division or the Department of Law Enforcement deems
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appropriate. Any law enforcement agency having jurisdiction over
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electronic gaming machines or pari-mutuel activities may share
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with the division information obtained or developed by it.
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(10)(a) An electronic gaming machine license or renewal may
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not be issued to an applicant holding a permit under chapter 550,
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Florida Statutes, to conduct pari-mutuel wagering races or games
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unless the applicant has on file with the division a binding
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written agreement between the applicant and the Florida
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Horsemen's Benevolent and Protective Association, Inc., the
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Florida Standardbred Breeders and Owners Association, Inc., the
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Florida Greyhound Association, Inc., the Florida Quarter Horse
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Racing Association, Inc., or the International Jai Alai Players
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Association, as applicable, governing the payment of awards and
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purses on live thoroughbred, harness, quarter horse, and dog
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races or Jai Alai games conducted at the licensee's pari-mutuel
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facility. In addition, an electronic gaming machine license or
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renewal thereof may not be issued to such an applicant unless the
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applicant has on file with the division a binding written
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agreement between the applicant and the Florida Thoroughbred
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Breeders' Association, Inc., governing the payment of breeders',
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stallion, and special racing awards on live thoroughbred races
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conducted at the licensee's pari-mutuel facility. The agreement
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governing purses and the agreement governing awards may direct
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the payment of such purses and awards from revenues generated by
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any wagering or games the applicant is authorized to conduct
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under state law. All purses and awards are subject to the terms
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of chapter 550, Florida Statutes. All sums for breeders',
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stallion, and special racing awards shall be remitted monthly to
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the Florida Thoroughbred Breeders' Association, Inc., for the
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payment of awards subject to the administrative fee authorized in
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s. 550.2625(3), Florida Statutes.
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(b) The division shall suspend an electronic gaming machine
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license if any agreement required under paragraph (a) is
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terminated or otherwise ceases to operate or if the division
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determines that the licensee is materially failing to comply with
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the terms of such agreement. Any suspension shall take place in
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accordance with chapter 120, Florida Statutes.
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(c)1. If an agreement required under paragraph (a) cannot
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be reached prior to the initial issuance of the electronic gaming
515
machine license, either party may request arbitration or, in the
516
case of a renewal, if such agreement is not in place 120 days
517
prior to the scheduled expiration date of the electronic gaming
518
machine license, the applicant shall immediately ask the American
519
Arbitration Association to furnish a list of 11 arbitrators, each
520
of whom shall have at least 5 years of commercial arbitration
521
experience and no financial interest in or prior relationship
522
with any party or with an affiliated or related entity or
523
principal. Each required party to the agreement shall select a
524
single arbitrator from the list within 10 days after receipt, and
525
the persons selected shall choose one additional arbitrator from
526
the list within 10 days.
527
2. If an agreement required under paragraph (a) is not in
528
place 60 days after the request under subparagraph 1., in the
529
case of an initial electronic gaming machine license or, in the
530
case of a renewal, 60 days prior to the scheduled expiration date
531
of the license, the matter shall be immediately submitted to
532
mandatory binding arbitration. The three arbitrators selected
533
pursuant to subparagraph 1. shall conduct the arbitration
534
pursuant to the American Arbitration Association Commercial
535
Arbitration Rules and chapter 682, Florida Statutes.
536
3. At the conclusion of the proceedings, which may be no
537
later than 90 days after the request under subparagraph 1. in the
538
case of an initial electronic gaming machine license or, in the
539
case of a renewal, 30 days prior to the scheduled expiration date
540
of the electronic gaming machine license, the arbitration panel
541
shall present to the parties a proposed agreement that the
542
majority of the panel believes equitably balances the rights,
543
interests, obligations, and reasonable expectations of the
544
parties. The parties shall immediately enter into such agreement,
545
which shall satisfy the requirements of paragraph (a) and permit
546
issuance of the pending annual electronic gaming machine license
547
or renewal. The agreement shall be effective until the last day
548
of the license or renewal period or until the parties enter into
549
a different agreement. Each party shall pay its respective costs
550
of arbitration and shall pay one-half of the costs of the
551
arbitration panel, unless the parties otherwise agree. If the
552
agreement remains in place 120 days prior to the scheduled
553
issuance of the next annual license renewal, the arbitration
554
process established in this paragraph shall begin again.
555
4. If neither agreement required under paragraph (a) is in
556
place by the deadlines established in this paragraph, arbitration
557
regarding each agreement will proceed independently, with
558
separate lists of arbitrators, arbitration panels, arbitration
559
proceedings, and resulting agreements.
560
5. With respect to the agreement required under paragraph
561
(a) governing the payment of purses, the arbitration and
562
resulting agreement is limited to the payment of purses from
563
electronic gaming machine revenues only.
564
(d) If any provision of this subsection or its application
565
to any person or circumstance is held invalid, the invalidity
566
does not affect other provisions or applications of this
567
subsection or act which can be given effect without the invalid
568
provision or application, and to this end the provisions of this
569
subsection are severable.
570
Section 5. Temporary licenses.--
571
(1) Notwithstanding any provision of s. 120.60, Florida
572
Statutes, to the contrary, the division may issue a temporary
573
occupational license upon receipt of a complete application and a
574
determination that the applicant has not been convicted of or had
575
adjudication withheld on any disqualifying criminal offense. The
576
temporary occupational license remains valid until the division
577
grants an occupational license or notifies the applicant of its
578
intended decision to deny the license pursuant to the provisions
579
of s. 120.60, Florida Statutes. The division shall adopt rules to
580
administer this subsection. However, not more than one temporary
581
license may be issued for any person in any year.
582
(2) A temporary license issued under this section is
583
nontransferable.
584
Section 6. Electronic gaming machine license renewal.--
585
(1) An electronic gaming machine license is effective for 1
586
year after issuance and shall be renewed annually. The
587
application for renewal must contain all revisions to the
588
information submitted in the prior year's application which are
589
necessary to maintain such information as accurate and current.
590
(2) The applicant for renewal shall attest that any
591
information changes do not affect such applicant's qualifications
592
for license renewal.
593
(3) Upon determination by the division that the application
594
for renewal is complete and qualifications have been met,
595
including payment of the renewal fee, the license shall be
596
renewed.
597
Section 7. License fee; tax rate; penalties.--
598
(1) LICENSE FEE.--
599
(a) Upon submission of the initial application for an
600
electronic gaming machine license and annually thereafter, on the
601
anniversary date of the issuance of the initial license, the
602
licensee must pay to the division a nonrefundable license fee of
603
$3 million for the succeeding 12 months of licensure. The fee
604
shall be deposited into the Pari-mutuel Wagering Trust Fund of
605
the Department of Business and Professional Regulation to be used
606
by the division and the Department of Law Enforcement for
607
investigations, regulation of electronic gaming, and enforcement
608
of electronic gaming provisions. These payments shall be
609
accounted for separately from taxes or fees paid pursuant to the
610
provisions of chapters 550 or 551, Florida Statutes.
611
(b) The division shall evaluate the license fee and submit
612
recommendations in the legislative budget request regarding the
613
optimum level of electronic gaming machine license fees required
614
to adequately support the electronic gaming machine regulatory
615
program.
616
(2) TAX ON ELECTRONIC GAMING MACHINE REVENUES.--
617
(a) The tax rate on electronic gaming machine revenues at
618
each facility shall be 35 percent.
619
(b) The electronic gaming machine revenue tax imposed by
620
this section shall be paid to the division for deposit into the
621
Pari-mutuel Wagering Trust Fund for immediate transfer by the
622
Chief Financial Officer for deposit into the Educational
623
Enhancement Trust Fund of the Department of Education. Any
624
interest earnings on the tax revenues shall also be transferred
625
to the Educational Enhancement Trust Fund.
626
(c)1. Funds transferred to the Educational Enhancement
627
Trust Fund shall be used to supplement public education funding
628
statewide.
629
2. If necessary to comply with any covenant established
631
Florida Statutes, funds transferred to the Educational
632
Enhancement Trust Fund shall first be available to pay debt
633
service on lottery bonds issued to fund school construction in
634
the event lottery revenues are insufficient for such purpose or
635
to satisfy debt service reserve requirements established in
636
connection with lottery bonds. Moneys available pursuant to this
637
subparagraph are subject to annual appropriation by the
638
Legislature.
639
(3) PAYMENT AND DISPOSITION OF TAXES.--Payment for the tax
640
on electronic gaming machine revenues imposed by this section
641
shall be paid to the division. The division shall deposit such
642
funds with the Chief Financial Officer, to the credit of the
643
Pari-mutuel Wagering Trust Fund. The electronic gaming machine
644
licensee shall remit to the division payment for the tax on
645
electronic gaming machine revenues by 3 p.m. Wednesday of each
646
week for taxes imposed and collected for the preceding week
647
ending on Sunday. The electronic gaming machine licensee shall
648
file a report under oath by the 5th day of each calendar month
649
for all taxes remitted during the preceding calendar month. Such
650
payments shall be accompanied by a report under oath showing all
651
electronic gaming machine gaming activities for the preceding
652
calendar month and such other information as may be prescribed by
653
the division.
654
(4) FAILURE TO PAY TAX; PENALTIES.--An electronic gaming
655
machine licensee who does not make tax payments required under
656
this section is subject to an administrative penalty of up to
657
$10,000 for each day the tax payment is not remitted. All
658
administrative penalties imposed and collected shall be deposited
659
into the Pari-mutuel Wagering Trust Fund of the Department of
660
Business and Professional Regulation. If an electronic gaming
661
machine licensee does not pay penalties imposed by the division,
662
the division may suspend, revoke, or refuse to renew the license
663
of the electronic gaming machine licensee.
664
(5) SUBMISSION OF FUNDS.--The division may require
665
electronic gaming machine licensees to remit taxes, fees, fines,
666
and assessments by electronic funds transfer.
667
Section 8. Electronic gaming machine occupational license;
668
findings; application; fee.--
669
(1) The Legislature finds that licensees under this section
670
require heightened state scrutiny, including the submission by
671
individual licensees or persons associated with those entities of
672
fingerprints for a criminal history record check.
673
(2)(a) The following electronic gaming machine occupational
674
licenses shall be issued to applicants that, by virtue of the
675
positions they hold, might be granted access to electronic gaming
676
machine areas or to any other person or entity in one of the
677
following categories:
678
1. General occupational licenses for general employees,
679
including food service, maintenance, and other similar service
680
and support employees having access to the electronic gaming
681
machine area.
682
2. Professional occupational licenses for any person,
683
proprietorship, partnership, corporation, or other entity that is
684
authorized by an electronic gaming machine licensee to manage,
685
oversee, or otherwise control daily operations as an electronic
686
gaming machine manager, floor supervisor, security personnel, or
687
other similar position of oversight of gaming operations, or any
688
person who is not an employee of the electronic gaming machine
689
licensee and who provides maintenance, repair, or upgrades or
690
otherwise services an electronic gaming machine or other
691
electronic gaming machine equipment.
692
3. Business occupational licenses for any electronic gaming
693
machine management company or company associated with electronic
694
gaming, any person who manufactures, distributes, or sells
695
electronic gaming machines, electronic gaming machine
696
paraphernalia, or other associated equipment to electronic gaming
697
machine licensees, or any company that sells or provides goods or
698
services associated with electronic gaming to electronic gaming
699
machine licensees.
700
(b) The division may issue one license in order to combine
701
licenses under this section with pari-mutuel occupational
702
licenses and cardroom licenses pursuant to s. 550.105(2)(b),
703
Florida Statutes. The division shall adopt rules pertaining to
704
occupational licenses under this subsection. Such rules may
705
specify requirements and restrictions for licensed occupations
706
and categories, procedures to apply for a license or combination
707
of licenses, disqualifying criminal offenses for a licensed
708
occupation or categories of occupations, and which types of
709
occupational licenses may be combined into a single license under
710
this section. The fingerprinting requirements of subsection (7)
711
apply to any combination license that includes electronic gaming
712
machine license privileges. The division may not adopt a rule
713
allowing the issuance of an occupational license to any person
714
who does not meet the minimum background qualifications of this
715
section.
716
(c) Electronic gaming machine occupational licenses are not
717
transferable.
718
(3) An electronic gaming machine licensee may not employ or
719
otherwise allow a person to work at a licensed facility unless
720
such person holds the appropriate valid occupational license. An
721
electronic gaming machine licensee may not contract or otherwise
722
conduct business with a business required to hold an electronic
723
gaming machine occupational license unless the business holds
724
such a license. An electronic gaming machine licensee may not
725
employ or otherwise allow a person to work in a supervisory or
726
management professional level at a licensed facility unless such
727
person holds a valid electronic gaming machine occupational
728
license. All electronic gaming machine occupational licensees,
729
while present in electronic gaming machine areas, shall display
730
on their persons their occupational license identification cards.
731
(4)(a) A person seeking an electronic gaming machine
732
occupational license or renewal thereof shall apply on forms
733
prescribed by the division and include payment of the appropriate
734
application fee. Initial and renewal applications for electronic
735
gaming machine occupational licenses must contain all information
736
that the division, by rule, requires.
737
(b) An electronic gaming machine license or combination
738
license is valid for the same term as a pari-mutuel occupational
739
license issued pursuant to s. 550.105(1), Florida Statutes.
740
(c) Pursuant to rules adopted by the division, any person
741
may apply for and, if qualified, be issued an electronic gaming
742
machine occupational license valid for a period of 3 years upon
743
payment of the full occupational license fee for each of the 3
744
years for which the license is issued. The electronic gaming
745
machine occupational license is valid during its specified term
746
at any licensed facility where electronic gaming machine gaming
747
is authorized to be conducted.
748
(d) The electronic gaming machine occupational license fee
749
for initial application and annual renewal shall be determined by
750
rule of the division but may not exceed $50 for a general or
751
professional occupational license for an employee of the
752
electronic gaming machine licensee or $1,000 for a business
753
occupational license for nonemployees of the licensee who provide
754
goods or services to the electronic gaming machine licensee.
755
License fees for general occupational licenses shall be paid by
756
the electronic gaming machine licensee. Failure to pay the
757
required fee constitutes grounds for disciplinary action by the
758
division against the electronic gaming machine licensee, but it
759
is not a violation of this act or rules of the division by the
760
general occupational licensee and does not prohibit the initial
761
issuance or the renewal of the general occupational license.
762
(5) The division may:
763
(a) Deny an application for, or revoke, suspend, or place
764
conditions or restrictions on, a license of an applicant or
765
licensee that has been refused a license by another state gaming
766
commission, governmental department, agency, or other authority
767
exercising regulatory jurisdiction over the gaming of another
768
state or jurisdiction; or
769
(b) Deny an application for, or suspend, or place
770
conditions on a license of any applicant or licensee that is
771
under suspension or has unpaid fines in another state or
772
jurisdiction.
773
(6)(a) The division may deny, suspend, revoke, or refuse to
774
renew any electronic gaming machine occupational license if the
775
applicant or licensee has violated this act or the rules
776
governing the conduct of persons connected with electronic games
777
or gaming. In addition, the division may deny, suspend, revoke,
778
or refuse to renew any electronic gaming machine occupational
779
license if the applicant or licensee has been convicted under the
780
laws of this state or of another state, or under the laws of the
781
United States, of a capital felony, a felony, or an offense in
782
another state which would be a felony under the laws of this
783
state involving arson; trafficking in, conspiracy to traffic in,
784
smuggling, importing, conspiracy to smuggle or import, or
785
delivery, sale, or distribution of a controlled substance;
786
racketeering; or a crime showing a lack of good moral character,
787
or has had a gaming license revoked by this state or another
788
jurisdiction for any gaming-related offense.
789
(b) The division may deny, revoke, or refuse to renew any
790
electronic gaming machine occupational license if the applicant
791
or licensee has been convicted of a felony or misdemeanor in this
792
state, in another state, or under the laws of the United States
793
if such felony or misdemeanor is related to gambling or
794
bookmaking as described in s. 849.25, Florida Statutes.
795
(c) As used in this subsection, the term "convicted" means
796
having been found guilty, with or without adjudication of guilt,
797
as a result of a jury verdict, nonjury trial, or entry of a plea
798
of guilty or nolo contendere.
799
(7) Fingerprints for electronic gaming machine occupational
800
license applications shall be taken in a manner approved by the
801
division and shall be submitted electronically to the Department
802
of Law Enforcement for state processing and to the Federal Bureau
803
of Investigation for national processing for a criminal history
804
record check. All persons as specified in s. 550.1815(1)(a),
805
Florida Statutes, employed by or working within licensed premises
806
shall submit fingerprints for a criminal history record check and
807
may not have been convicted of any disqualifying criminal
808
offenses specified in subsection (6). Division employees and law
809
enforcement officers assigned to work within such premises as
810
part of their official duties are excluded from the criminal
811
history record check requirements. As used in this subsection,
812
the term "convicted" means having been found guilty, with or
813
without adjudication of guilt, as a result of a jury verdict,
814
nonjury trial, or entry of a plea of guilty or nolo contendere.
815
(a) Fingerprints shall be taken in a manner approved by the
816
division upon initial application, or as required thereafter by
817
rule of the division, and shall be submitted electronically to
818
the Department of Law Enforcement for state processing. The
819
Department of Law Enforcement shall forward the fingerprints to
820
the Federal Bureau of Investigation for national processing. The
821
results of the criminal history record check shall be returned to
822
the division for screening. Licensees shall provide necessary
823
equipment, approved by the Department of Law Enforcement, to
824
facilitate such electronic submission. The division requirements
825
shall be instituted in consultation with the Department of Law
826
Enforcement.
827
(b) The cost of processing fingerprints and conducting a
828
criminal history record check for a general occupational license
829
shall be paid by the electronic gaming machine licensee. The cost
830
of processing fingerprints and conducting a criminal history
831
record check for a business or professional occupational license
832
shall be paid by the person being checked. The Department of Law
833
Enforcement may invoice the division for the fingerprints
834
submitted each month.
835
(c) All fingerprints submitted to the Department of Law
836
Enforcement shall be retained by the Department of Law
837
Enforcement and entered into the statewide automated fingerprint
838
identification system as authorized by s. 943.05(2)(b), Florida
839
Statutes, and shall be available for all purposes and uses
840
authorized for arrest fingerprint cards in the statewide
841
automated fingerprint identification system pursuant to s.
842
943.051, Florida Statutes.
843
(d) The Department of Law Enforcement shall search all
844
arrest fingerprints received pursuant to s. 943.051, Florida
845
Statutes, against the fingerprints retained in the statewide
846
automated fingerprint identification system. Any arrest record
847
that is identified with the retained fingerprints of a person
848
subject to the criminal history screening requirements shall be
849
reported to the division. Each licensed facility shall pay a fee
850
for the cost of retention of the fingerprints and the ongoing
851
searches under this paragraph. The division shall forward the fee
852
to the Department of Law Enforcement. The amount of the fee to be
853
imposed for such searches and the procedures for the retention of
854
licensee fingerprints shall be as established by rule of the
855
Department of Law Enforcement. The division shall inform the
856
Department of Law Enforcement of any change in the license status
857
of licensees whose fingerprints are retained.
858
(e) The division shall request the Department of Law
859
Enforcement to forward the fingerprints to the Federal Bureau of
860
Investigation for a national criminal history records check every
861
3 years following issuance of a license. If the fingerprints of a
862
person who is licensed have not been retained by the Department
863
of Law Enforcement, the person must file a complete set of
864
fingerprints as provided in paragraph (a). The division shall
865
collect the fees for the cost of the national criminal history
866
record check and shall forward the payment to the Department of
867
Law Enforcement. The cost of processing fingerprints and
868
conducting a criminal history record check for a general
869
occupational license shall be paid by the electronic gaming
870
machine licensee. The cost of processing fingerprints and
871
conducting a criminal history record check for a business or
872
professional occupational license shall be paid by the person
873
being checked. The Department of Law Enforcement may invoice the
874
division for the fingerprints submitted each month. Under penalty
875
of perjury, each person who is licensed or fingerprinted must
876
agree to inform the division within 48 hours if he or she is
877
convicted of or enters a plea of guilty or nolo contendere to any
878
disqualifying offense, regardless of adjudication.
879
(8) All moneys collected pursuant to this section shall be
880
deposited into the Pari-mutuel Wagering Trust Fund.
881
(9) The division may deny, revoke, or suspend any
882
occupational license if the applicant or licensee accumulates
883
unpaid obligations, defaults in obligations, or issues drafts or
884
checks that are dishonored or for which payment is refused
885
without reasonable cause.
886
(10) The division may fine or suspend, revoke, or place
887
conditions upon the license of any licensee who provides false
888
information under oath regarding an application for a license or
889
an investigation by the division.
890
(11) The division may impose a civil fine of up to $5,000
891
for each violation of this act or the rules of the division in
892
addition to or in lieu of any other penalty. The division may
893
adopt a penalty schedule for violations for which it would impose
894
a fine in lieu of a suspension and adopt rules allowing for the
895
issuance of citations, including procedures to address such
896
citations, to persons who violate such rules. In addition to any
897
other penalty provided by law, the division may exclude from all
898
licensed electronic gaming machine facilities in this state, for
899
a period not to exceed the period of suspension, revocation, or
900
ineligibility, any person whose occupational license application
901
has been refused or who has been declared ineligible to hold an
902
occupational license or whose occupational license has been
903
suspended or revoked by the division.
904
Section 9. Prohibited relationships.--
905
(1) A person employed by or performing any function on
906
behalf of the division may not:
907
(a) Be an officer, director, owner, or employee of any
908
person licensed by the division.
909
(b) Have or hold any interest, direct or indirect, in or
910
engage in any commerce or business relationship with any person
911
licensed by the division.
912
(2) A manufacturer or distributor of electronic gaming
913
machines may not enter into any contract with an electronic
914
gaming machine licensee which provides for any revenue sharing
915
that is directly or indirectly calculated on the basis of a
916
percentage of electronic gaming machine revenues. Any maneuver,
917
shift, or device whereby this subsection is violated is a
918
violation of this act and renders any such agreement void.
919
(3) A manufacturer or distributor of electronic gaming
920
machines or equipment necessary for the operation of electronic
921
gaming machines or an officer, director, or employee of any such
922
manufacturer or distributor may not have any ownership or
923
financial interest in an electronic gaming machine license or any
924
business owned by an electronic gaming machine licensee.
925
(4) An employee of the division or relative living in the
926
same household as such employee may not wager on an electronic
927
gaming machine located at a facility licensed by the division.
928
(5) An occupational licensee or relative living in the same
929
household as the licensee may not wager on an electronic gaming
930
machine located at a facility operated by such licensee.
931
Section 10. Prohibited acts; penalties.--
932
(1) Except as otherwise provided by law and in addition to
933
any other penalty, a person who knowingly makes or causes to be
934
made, or aids, assists, or procures another to make, a false
935
statement in any report, disclosure, application, or other
936
document required under this act or under any rule adopted under
937
this act is subject to an administrative fine or civil penalty of
938
up to $10,000.
939
(2) Except as otherwise provided by law and in addition to
940
any other penalty, a person who possesses an electronic gaming
941
machine without a license or who possesses an electronic gaming
942
machine at a location other than at the electronic gaming machine
943
licensee's facility is subject to an administrative fine or civil
944
penalty of up to $10,000 per machine. This prohibition does not
945
apply to:
946
(a) Electronic gaming machine manufacturers or distributors
947
that hold appropriate licenses who are authorized to maintain an
948
electronic gaming machine storage and maintenance facility in
949
this state. The division may adopt rules regarding security and
950
access to the storage facility and inspections.
951
(b) Certified educational facilities that are authorized to
952
maintain electronic gaming machines for education and licensure
953
of electronic gaming machine technicians, inspectors, or
954
investigators. The division and the Department of Law Enforcement
955
may possess electronic gaming machines for training and testing
956
purposes. The division may adopt rules regarding the regulation
957
of such electronic gaming machines.
958
(3) A person who knowingly excludes or attempts to exclude,
959
anything of value from the deposit, counting, collection, or
960
computation of revenues from electronic gaming machine activity,
961
or a person who by trick, sleight-of-hand, fraud, or device wins
962
or attempts to win money or property, or to reduce a losing wager
963
in connection with electronic gaming machine gaming commits a
964
felony of the third degree, punishable as provided in s. 775.082,
966
(4) Any person who manipulates or attempts to manipulate
967
the outcome, payoff, or operation of an electronic gaming machine
968
by physical tampering or the use of an object, instrument, or
969
device, whether mechanical, electrical, or magnetic, or by other
970
means, commits a felony of the third degree, punishable as
972
Statutes.
973
(5) Theft of electronic gaming machine proceeds or property
974
belonging to an electronic gaming machine operator, licensee, or
975
licensed facility by an employee of the operator or facility or a
976
person contracted to provide services to the operator or facility
977
constitutes a felony of the third degree, punishable as provided
979
(6)(a) A law enforcement officer or electronic gaming
980
machine operator who has probable cause to believe that a person
981
has committed a violation of subsection (3), subsection (4), or
982
subsection (5) may take into custody on the premises and detain
983
the person in a reasonable manner for a reasonable time. If the
984
operator takes the person into custody, a law enforcement officer
985
shall be called to the scene immediately. The taking into custody
986
and detention by a law enforcement officer or electronic gaming
987
machine operator, if done in compliance with this subsection,
988
does not render such law enforcement officer, or the officer's
989
agency, or the electronic gaming machine operator criminally or
990
civilly liable for false arrest, false imprisonment, or unlawful
991
detention.
992
(b) A law enforcement officer may arrest, on or off the
993
premises and without warrant, any person if the officer has
994
probable cause to believe that person has violated subsection
995
(3), subsection (4), or subsection (5).
996
(c) A person who resists the reasonable effort of a law
997
enforcement officer or electronic gaming machine operator to take
998
into custody a person who is violating subsection (3), subsection
999
(4), or subsection (5) commits a misdemeanor of the first degree,
1001
Statutes, unless the person did not know or have reason to know
1002
that the person seeking to take him or her into custody was a law
1003
enforcement officer or electronic gaming machine operator.
1004
(7) Penalties imposed and collected under this section must
1005
be deposited into the Pari-mutuel Wagering Trust Fund of the
1006
Department of Business and Professional Regulation.
1007
Section 11. Legal devices.--Notwithstanding any provision
1008
of law to the contrary, electronic gaming machines manufactured,
1009
sold, distributed, possessed, or operated pursuant to this act
1010
are lawful in this state.
1011
Section 12. Exclusions of certain persons.--In addition to
1012
the power to exclude certain persons, the division may exclude
1013
any person from a facility of an electronic gaming machine
1014
licensee in this state for conduct that would constitute, if the
1015
person were a licensee, a violation of this act or the rules of
1016
the division. The division may exclude a person who has been
1017
ejected from a facility or who has been excluded from a facility
1018
in another state by the governmental authority exercising
1019
regulatory jurisdiction over the gaming in such other state. This
1020
section does not abrogate the common law right of an electronic
1021
gaming machine licensee to exclude a patron.
1022
Section 13. Persons prohibited from operating electronic
1023
gaming machines.--
1024
(1) A person who has not attained 21 years of age may not
1025
operate or play an electronic gaming machine or have access to
1026
the designated electronic gaming machine area of a facility of an
1027
electronic gaming machine licensee.
1028
(2) An electronic gaming machine licensee or agent or
1029
employee of an electronic gaming machine licensee may not
1030
knowingly allow a person who has not attained 21 years of age:
1031
(a) To play or operate an electronic gaming machine.
1032
(b) To be employed in any position allowing or requiring
1033
access to the designated gaming area of a facility of an
1034
electronic gaming machine licensee.
1035
(c) To have access to the designated gaming area of a
1036
facility of an electronic gaming machine licensee.
1037
(3) A licensed facility shall post clear and conspicuous
1038
signage within the designated electronic gaming machine areas
1039
which states:
1040
1041
THE PLAYING OF ELECTRONIC GAMING MACHINES BY PERSONS UNDER
1042
THE AGE OF 21 IS AGAINST FLORIDA LAW (CITE TO FLORIDA
1043
STATUTES SECTION). PROOF OF AGE MAY BE REQUIRED AT ANY TIME.
1044
1045
Section 14. Electronic gaming machine areas.--
1046
(1) An electronic gaming machine licensee may make
1047
available for play up to 2,000 electronic gaming machines within
1048
the eligible facilities of the electronic gaming machine licensee
1049
in a designated electronic gaming machine area.
1050
(2) The electronic gaming machine licensee shall display
1051
pari-mutuel races or games within the designated electronic
1052
gaming machine areas and offer patrons within such areas the
1053
opportunity to wager on live, intertrack, and simulcast races
1054
offered to the patrons.
1055
(3) The division shall require the posting of signs warning
1056
of the risks and dangers of gambling, showing the odds of
1057
winning, and informing patrons of the toll-free telephone number
1058
available to provide information and referral services regarding
1059
compulsive or problem gambling.
1060
(4) Designated electronic gaming machine areas may be
1061
located within the current live gaming facility or an existing
1062
building that is contiguous and connected to the live gaming
1063
facility. If such gaming area is to be located in a building that
1064
is not yet constructed, the new building must be contiguous and
1065
connected to the live gaming facility.
1066
(5) A permitholder shall provide adequate office space at
1067
no cost to the division and the Department of Law Enforcement for
1068
the oversight of electronic gaming machine operations. The
1069
division shall adopt rules establishing criteria for adequate
1070
space, configuration, and location and needed electronic and
1071
technological requirements.
1072
Section 15. Days and hours of operation.--Electronic gaming
1073
machine areas may be open daily throughout the year. They may be
1074
open a cumulative total of 18 hours per day on Monday through
1075
Friday and 24 hours per day on Saturday and Sunday and on
1076
holidays specified in s. 110.117(1), Florida Statutes.
1077
Section 16. Penalties.--The division may revoke or suspend
1078
an electronic gaming machine license issued under this act upon
1079
the willful violation by the licensee of any provision of this
1080
act or rule adopted under this act. In lieu of suspending or
1081
revoking an electronic gaming machine license, the division may
1082
impose a civil penalty against the licensee for such violation.
1083
Except as otherwise provided in this act, the division may not
1084
impose a penalty that exceeds $100,000 for each count or separate
1085
offense. All fines collected must be deposited into the Pari-
1086
mutuel Wagering Trust Fund of the Department of Business and
1087
Professional Regulation.
1088
Section 17. Compulsive or addictive gambling prevention
1089
program.--
1090
(1) Each electronic gaming machine licensee shall offer
1091
training to employees on responsible gaming and shall work with a
1092
compulsive or addictive gambling prevention program to recognize
1093
problem gaming situations and implement responsible gaming
1094
programs and practices.
1095
(2) The division shall, subject to competitive bidding,
1096
contract for services related to the prevention of compulsive and
1097
addictive gambling. The contract shall require an advertising
1098
program to encourage responsible gaming practices and publicize a
1099
gambling telephone help line. Such advertisements must be made
1100
both publicly and inside the designated electronic gaming machine
1101
areas of the licensee's facilities. The terms of any contract for
1102
such services shall include accountability standards for any
1103
private provider. The failure of a private provider to meet any
1104
material term of the contract, including the accountability
1105
standards, constitutes a breach of contract or grounds for
1106
nonrenewal.
1107
(3) The compulsive or addictive gambling prevention program
1108
shall be funded from an annual nonrefundable regulatory fee of
1109
$250,000 paid by each licensee.
1110
Section 18. Caterer's license.--An electronic gaming
1111
machine licensee is entitled to a caterer's license pursuant to
1112
s. 565.02, Florida Statutes, on days on which the pari-mutuel
1113
facility is open to the public for electronic gaming machine
1114
play.
1115
Section 19. Prohibited activities and devices;
1116
exceptions.--
1117
(1) Complimentary or reduced-cost alcoholic beverages may
1118
not be served to persons playing an electronic gaming machine.
1119
Alcoholic beverages shall cost at least the same amount as
1120
alcoholic beverages served to the general public at any bar
1121
within the facility.
1122
(2) An electronic gaming machine licensee may not make
1123
loans, provide credit, or advance cash to enable a person to play
1124
an electronic gaming machine. This subsection does not prohibit
1125
automated ticket redemption machines that dispense cash from the
1126
redemption of tickets from being located in the designated
1127
electronic gaming machine gaming area.
1128
(3) An automated teller machine or similar device designed
1129
to provide credit or dispense cash may not be located within the
1130
designated electronic gaming machine area of a facility of an
1131
electronic gaming machine licensee.
1132
(4)(a) An electronic gaming machine licensee may not accept
1133
or cash a check from any person within the designated electronic
1134
gaming machine area of a facility.
1135
(b) Except as provided in paragraph (c) for employees of
1136
the facility, an electronic gaming machine licensee may not
1137
accept or cash for any person within the facility a government-
1138
issued check, third-party check, or payroll check made payable to
1139
an individual.
1140
(c) Outside the designated electronic gaming machine gaming
1141
area, an electronic gaming machine licensee or operator may
1142
accept or cash a check for an employee of the facility who is
1143
prohibited from wagering on an electronic gaming machine under s.
1144
551.108(5), Florida Statutes, a check made payable to a person
1145
licensed by the division, or a check made payable to the licensee
1146
or operator from:
1147
1. A pari-mutuel patron; or
1148
2. A pari-mutuel facility in any state.
1149
(d) Unless accepting or cashing a check is prohibited by
1150
this subsection, an electronic gaming machine licensee or
1151
operator may accept and deposit in its accounts checks received
1152
in the normal course of business.
1153
(5) An electronic gaming machine, or the computer operating
1154
system linking the electronic gaming machine, may be linked to
1155
any other electronic gaming machine or computer operating system
1156
within this state.
1157
(6) An electronic gaming machine located within a licensed
1158
facility may accept only tickets or an electronic payment system
1159
for wagering and return or deliver payouts to the players in the
1160
form of tickets that may be exchanged for cash, merchandise, or
1161
other items of value. The use of coins, currency, credit or debit
1162
cards, tokens, or similar objects is prohibited. However, an
1163
electronic credit system may be used for receiving wagers and
1164
making payouts.
1165
Section 20. Rulemaking.--The division may adopt rules
1167
administer this act.
1168
Section 21. The Legislature finds and declares that it has
1169
exclusive authority over the conduct of all wagering occurring at
1170
electronic gaming machine facilities in this state. Only the
1171
Division of Pari-mutuel Wagering and other authorized state
1172
agencies may administer this act and regulate the electronic
1173
gaming machine industry, including operation of electronic gaming
1174
machine facilities, games, electronic gaming machines, and
1175
facilities-based computer systems authorized in this act and the
1176
rules adopted by the division.
1177
Section 22. Exception to s. 849.0931, Florida
1178
Statutes.--The electronic gaming machines authorized by this act
1179
are not subject to the provisions of s. 849.0931, Florida
1180
Statutes.
1181
Section 23. Paragraph (w) is added to subsection (1) of
1182
section 215.22, Florida Statutes, to read:
1183
215.22 Certain income and certain trust funds exempt.--
1184
(1) The following income of a revenue nature or the
1185
following trust funds shall be exempt from the appropriation
1186
required by s. 215.20(1):
1187
(w) Taxes imposed on electronic gaming and electronic
1188
gaming machines at eligible pari-mutuel facilities.
1189
Section 24. Subsection (2) of section 849.15, Florida
1190
Statutes, is amended to read:
1191
849.15 Manufacture, sale, possession, etc., of coin-
1192
operated devices prohibited.--
1193
(2) Pursuant to section 2 of that chapter of the Congress
1194
of the United States entitled "An act to prohibit transportation
1195
of gaming devices in interstate and foreign commerce," approved
1196
January 2, 1951, being ch. 1194, 64 Stat. 1134, and also
1197
designated as 15 U.S.C. ss. 1171-1177, the State of Florida,
1198
acting by and through the duly elected and qualified members of
1199
its Legislature, does hereby in this section, and in accordance
1200
with and in compliance with the provisions of section 2 of such
1201
chapter of Congress, declare and proclaim that any county of the
1202
State of Florida within which slot machine gaming is authorized
1203
pursuant to chapter 551 or electronic gaming is authorized is
1204
exempt from the provisions of section 2 of that chapter of the
1205
Congress of the United States entitled "An act to prohibit
1206
transportation of gaming devices in interstate and foreign
1207
commerce," designated as 15 U.S.C. ss. 1171-1177, approved
1208
January 2, 1951. All shipments of gaming devices, including slot
1209
machines and electronic gaming machines, into any county of this
1210
state within which slot machine gaming is authorized pursuant to
1211
chapter 551 or electronic gaming is authorized at eligible pari-
1212
mutuel facilities and the registering, recording, and labeling of
1213
which have been duly performed by the manufacturer or distributor
1214
thereof in accordance with sections 3 and 4 of that chapter of
1215
the Congress of the United States entitled "An act to prohibit
1216
transportation of gaming devices in interstate and foreign
1217
commerce," approved January 2, 1951, being ch. 1194, 64 Stat.
1218
1134, and also designated as 15 U.S.C. ss. 1171-1177, shall be
1219
deemed legal shipments thereof into this state provided the
1220
destination of such shipments is an eligible slot machine
1221
facility as defined in s. 551.102, an eligible electronic gaming
1222
machine facility, a certified educational facility, or the
1223
facility of a slot machine manufacturer or slot machine
1224
distributor as provided in s. 551.109(2)(a), a certified
1225
educational facility, or the facility of an electronic gaming
1226
machine manufacturer or electronic gaming machine distributor
1227
authorized to possess electronic gaming machines as provided in
1228
the act authorizing electronic gaming machines at eligible pari-
1229
mutuel facilities.
1230
Section 25. Subsections (1) and (2) of section 895.02,
1231
Florida Statutes, are amended to read:
1233
term:
1234
(1) "Racketeering activity" means to commit, to attempt to
1235
commit, to conspire to commit, or to solicit, coerce, or
1236
intimidate another person to commit:
1237
(a) Any crime that is chargeable by indictment or
1238
information under the following provisions of the Florida
1239
Statutes:
1240
1. Section 210.18, relating to evasion of payment of
1241
cigarette taxes.
1242
2. Section 403.727(3)(b), relating to environmental
1243
control.
1245
fraud.
1246
4. Section 414.39, relating to public assistance fraud.
1248
compensation.
1249
6. Section 443.071(4), relating to creation of a fictitious
1250
employer scheme to commit unemployment compensation fraud.
1251
7. Section 465.0161, relating to distribution of medicinal
1252
drugs without a permit as an Internet pharmacy.
1254
499.0691, relating to crimes involving contraband and adulterated
1255
drugs.
1256
9. Part IV of chapter 501, relating to telemarketing.
1257
10. Chapter 517, relating to sale of securities and
1258
investor protection.
1260
to dogracing and horseracing.
1261
12. Chapter 550, relating to jai alai frontons.
1262
13. Section 551.109, relating to slot machine gaming.
1263
14. Chapter 552, relating to the manufacture, distribution,
1264
and use of explosives.
1265
15. Chapter 560, relating to money transmitters, if the
1266
violation is punishable as a felony.
1267
16. Chapter 562, relating to beverage law enforcement.
1268
17. Section 624.401, relating to transacting insurance
1269
without a certificate of authority, s. 624.437(4)(c)1., relating
1270
to operating an unauthorized multiple-employer welfare
1271
arrangement, or s. 626.902(1)(b), relating to representing or
1272
aiding an unauthorized insurer.
1273
18. Section 655.50, relating to reports of currency
1274
transactions, when such violation is punishable as a felony.
1275
19. Chapter 687, relating to interest and usurious
1276
practices.
1278
real estate timeshare plans.
1279
21. Chapter 782, relating to homicide.
1280
22. Chapter 784, relating to assault and battery.
1281
23. Chapter 787, relating to kidnapping or human
1282
trafficking.
1283
24. Chapter 790, relating to weapons and firearms.
1286
trafficking.
1287
26. Chapter 806, relating to arson.
1288
27. Section 810.02(2)(c), relating to specified burglary of
1289
a dwelling or structure.
1290
28. Chapter 812, relating to theft, robbery, and related
1291
crimes.
1292
29. Chapter 815, relating to computer-related crimes.
1293
30. Chapter 817, relating to fraudulent practices, false
1294
pretenses, fraud generally, and credit card crimes.
1295
31. Chapter 825, relating to abuse, neglect, or
1296
exploitation of an elderly person or disabled adult.
1297
32. Section 827.071, relating to commercial sexual
1298
exploitation of children.
1299
33. Chapter 831, relating to forgery and counterfeiting.
1300
34. Chapter 832, relating to issuance of worthless checks
1301
and drafts.
1302
35. Section 836.05, relating to extortion.
1303
36. Chapter 837, relating to perjury.
1304
37. Chapter 838, relating to bribery and misuse of public
1305
office.
1306
38. Chapter 843, relating to obstruction of justice.
1308
s. 847.07, relating to obscene literature and profanity.
1310
849.25, relating to gambling.
1311
41. Chapter 874, relating to criminal street gangs.
1312
42. Chapter 893, relating to drug abuse prevention and
1313
control.
1314
43. Chapter 896, relating to offenses related to financial
1315
transactions.
1317
a witness, victim, or informant, and retaliation against a
1318
witness, victim, or informant.
1320
jurors and evidence.
1321
46. Provisions of law relating to electronic gaming and
1322
electronic gaming machines at eligible pari-mutuel facilities.
1323
(b) Any conduct defined as "racketeering activity" under 18
1324
U.S.C. s. 1961(1).
1325
(2) "Unlawful debt" means any money or other thing of value
1326
constituting principal or interest of a debt that is legally
1327
unenforceable in this state in whole or in part because the debt
1328
was incurred or contracted:
1329
(a) In violation of any one of the following provisions of
1330
law:
1332
to dogracing and horseracing.
1333
2. Chapter 550, relating to jai alai frontons.
1334
3. Section 551.109, relating to slot machine gaming.
1335
4. Chapter 687, relating to interest and usury.
1337
849.25, relating to gambling.
1338
6. Provisions of law relating to electronic gaming and
1339
electronic gaming machines at eligible pari-mutuel facilities.
1340
(b) In gambling activity in violation of federal law or in
1341
the business of lending money at a rate usurious under state or
1342
federal law.
1343
Section 26. (1) ____ full-time equivalent positions are
1344
authorized, and the sums of $_______ in recurring funds and
1345
$_______ in nonrecurring funds for the 2008-2009 fiscal year are
1346
appropriated from the Pari-mutuel Wagering Trust Fund of the
1347
Department of Business and Professional Regulation for the
1348
purpose of carrying out all regulatory activities provided in
1349
this act. The Executive Office of the Governor shall place these
1350
funds and positions in reserve until the Department of Business
1351
and Professional Regulation submits an expenditure plan for
1352
approval to the Executive Office of the Governor and the chair
1353
and vice chair of the Legislative Budget Commission in accordance
1354
with the provisions of s. 216.177, Florida Statutes.
1355
(2) The sums of $_______ in recurring funds and $_______ in
1356
nonrecurring funds for the 2008-2009 fiscal year are appropriated
1357
from the Pari-mutuel Wagering Trust Fund of the Department of
1358
Business and Professional Regulation for transfer to the
1359
Department of Law Enforcement for the purpose of investigations,
1360
intelligence gathering, background investigations, and any other
1361
responsibilities as provided in this act. ____ full-time
1362
equivalent positions are authorized, and the sums of $ _______ in
1363
recurring funds and $ _______ in nonrecurring funds for the 2008-
1364
2009 fiscal year are appropriated from the Operating Trust Fund
1365
of the Department of Law Enforcement for the purpose of
1366
investigations, intelligence gathering, background
1367
investigations, and any other responsibilities as provided in
1368
this act. The Executive Office of the Governor shall place such
1369
funds and positions in reserve until the Department of Law
1370
Enforcement submits an expenditure plan for approval to the
1371
Executive Office of the Governor and the chair and vice chair of
1372
the Legislative Budget Commission in accordance with the
1373
provisions of s. 216.177, Florida Statutes.
1374
(3) The sum of $1 million is appropriated annually from the
1375
Pari-mutuel Wagering Trust Fund of the Department of Business and
1376
Professional Regulation from revenues received pursuant to s.
1377
551.118, Florida Statutes, for contract services related to the
1378
prevention of compulsive and addictive gambling.
1379
Section 27. The Department of Business and Professional
1380
Regulation may expend the unreserved cash balance in the Pari-
1381
mutuel Wagering Trust Fund received from other revenue sources to
1382
implement electronic gaming regulation and investigations during
1383
fiscal year 2008-2009. Beginning as soon as is practicable, but
1384
no later than the 2008-2009 fiscal year, the department shall
1385
initiate repayment of such funds with electronic gaming machine
1386
license revenue sources until the full amount is reimbursed. The
1387
department shall submit a repayment plan for approval to the
1388
Executive Office of the Governor and the chair and vice chair of
1389
the Legislative Budget Commission in accordance with the
1390
provisions of s. 216.177, Florida Statutes. The repaid funds
1391
shall be subject to the requirements of s. 550.135(2), Florida
1392
Statutes.
1393
Section 28. This act shall take effect upon becoming a law.
CODING: Words stricken are deletions; words underlined are additions.