HB 1469

1
A bill to be entitled
2An act relating to the Department of the Lottery and pari-
3mutuel facilities; amending s. 24.103, F.S.; providing
4definitions; amending s. 24.105, F.S.; providing powers
5and duties of the Department of the Lottery pertaining to
6video lottery games; creating s. 24.125, F.S.; providing
7for the adoption of rules; creating s. 24.126, F.S.;
8prohibiting certain persons from playing video lottery
9games; requiring video lottery retailers to post certain
10signage; providing penalties; creating s. 24.127, F.S.;
11providing requirements for the operation of video lottery
12games; providing for fines and orders of suspension;
13requiring the video lottery retailer to post bond;
14providing a payout percentage; providing for licensure and
15a license fee; providing for the distribution of net
16terminal income; providing for weekly allocations;
17providing penalties; creating s. 24.128, F.S.; providing
18for the licensure of video lottery terminal vendors;
19providing for emergency rules; creating s. 24.129, F.S.;
20providing that use or expansion of property for video
21lottery terminals is not subject to review or approval
22under land use, zoning, or site plan review or concurrency
23law, ordinance, or regulation; creating s. 24.130, F.S.;
24providing requirements for video lottery terminals;
25creating s. 24.131, F.S.; requiring video lottery terminal
26vendors to establish training programs for employees who
27service such terminals; requiring department approval of
28such programs; providing certification requirements;
29providing for the adoption of rules; creating s. 24.132,
30F.S.; requiring certain video lottery retailers to execute
31certain agreements governing the payment of purses and
32special thoroughbred racing awards; requiring the
33remittance of funds pursuant to such agreements;
34authorizing the department to sanction certain breeders;
35prohibiting the operation of video lottery games in the
36absence of agreements; requiring arbitration if agreements
37are not in place; requiring certain video lottery
38retailers to make certain payments for the promotion of
39the thoroughbred racing industry; creating s. 24.133,
40F.S.; requiring operators of facilities where video
41lottery games are conducted to post certain signs
42regarding compulsive gambling; creating s. 24.134, F.S.;
43providing for compulsive gambling prevention programs;
44creating s. 24.136, F.S.; authorizing a caterer's license
45for video lottery retailers; creating s. 24.137, F.S.;
46prohibiting video lottery retailers from engaging in
47certain activities; creating s. 24.138, F.S.; providing
48for the exclusion of certain persons from a video lottery
49retailer's premises; creating s. 24.139, F.S.; requiring
50video lottery retailers to provide office space for
51department employees; amending s. 212.02, F.S.; excluding
52video lottery terminals from the definition of the term
53"coin-operated amusement machine" for purposes of the
54sales and use tax; amending s. 1011.62, F.S.; decreasing
55the required local effort for school districts by certain
56estimated revenues from video lottery terminals; amending
57s. 550.09515, F.S.; providing for reissuance of a pari-
58mutuel permit that has been revoked by the Division of
59Pari-mutuel Wagering of the Department of Business and
60Professional Regulation or has escheated to the state;
61providing an appropriation and authorizing additional
62positions; providing an effective date.
63
64     WHEREAS, the pari-mutuel industry has been a valuable part
65of the Florida economy and a source of tax revenue for over 50
66years, and
67     WHEREAS, the onset of tribal gaming has had a
68disproportionate negative impact on revenues and taxes on the
69pari-mutuel facilities located within their primary market area,
70and
71     WHEREAS, the tribal casinos do not pay any tax to the state
72in connection with their gaming operations, and the loss of
73revenues to existing pari-mutuel facilities causes the state to
74lose tax revenues, and
75     WHEREAS, the state, in order to maintain the revenues in
76those areas directly affected, would allow those pari-mutuel
77facilities to become "video lottery retailers" subject to the
78requirements of this act, including the tax imposed on
79operations which would benefit the state and its education
80system, and
81     WHEREAS, the limited authorization of "video lottery
82retailers" at existing pari-mutuel facilities would ensure that
83the state would continue to recover taxes associated with pari-
84mutuel facilities that the state has enjoyed for over 50 years,
85NOW, THEREFORE,
86
87Be It Enacted by the Legislature of the State of Florida:
88
89     Section 1.  Subsections (7) through (11) are added to
90section 24.103, Florida Statutes, to read:
91     24.103  Definitions.--As used in this act:
92     (7)  "Video lottery game" means any machine, mechanical or
93electrical contrivance, terminal that may or may not be capable
94of downloading slot games from a central server system, or other
95device that, upon insertion of a coin, bill, ticket, token, or
96similar object or upon payment of any consideration whatsoever,
97including the use of any electronic payment system except a
98credit card or debit card, is available to play or operate, the
99play or operation of which, whether by reason of skill or
100application of the element of chance or both, may deliver or
101entitle the person or persons playing or operating the machine,
102contrivance, terminal, or other device to receive cash, billets,
103tickets, tokens, or electronic credits to be exchanged for cash
104or to receive merchandise or anything of value whatsoever,
105whether the payoff is made automatically from the machine or
106manually. The term includes associated equipment necessary to
107conduct the operation of the machine, contrivance, terminal, or
108other device. Slot machines may use spinning reels, video
109displays, or both.
110     (8)  "Video lottery terminal" means a mechanical,
111electronic, computerized gaming device that is a technological
112machine capable of being linked to a centralized computer
113management system for regulating, managing, and auditing the
114operation, financial data, and program information, as required
115by the department. A video lottery terminal may be activated by
116insertion of a coin, bill, ticket, token, or similar object or
117upon payment of any consideration whatsoever, including the use
118of any electronic payment system except a credit card or debit
119card, and may entitle the person playing or operating the
120terminal to receive or may deliver to the person cash, billets,
121tickets, tokens, or electronic credits to be exchanged for cash.
122For purposes of this subsection:
123     (a)  "Electronic or electromechanical facsimile" means a
124game played in an electronic or electromechanical format that
125replicates a game of chance by incorporating all of the
126characteristics of the game.
127     (b)  "Mechanical, electronic, computerized, or other
128technological aid" means any machine or device that assists a
129player or the playing of an electronic game.
130
131A video lottery terminal is not a coin-operated amusement
132machine as defined in s. 212.02(24) and does not include an
133amusement game or machine as described in s. 849.161
134     (9)  "Video lottery terminal vendor" means any person
135licensed by the department who is in the business of selling,
136leasing, servicing, repairing, or upgrading video lottery
137terminals for video lottery retailers or who provides to the
138department or to a video lottery retailer computer equipment,
139software, or other functions related to video lottery terminals.
140     (10)  "Net terminal income" means currency and other
141consideration placed into a video lottery terminal, less payouts
142to or credits redeemed by players.
143     (11)  "Video lottery retailer" means a pari-mutuel
144permitholder under chapter 550 who held a license to conduct a
145full schedule of live racing or games, as described in s.
146550.002(11), on January 1, 2007, and who conducted a full
147schedule of live racing or games during fiscal year 2007-2008,
148and:
149     (a)  Whose facility is operating on a site that is located
150within 60 miles of an operating tribal casino that was in
151existence in this state on or before January 1, 2007; or
152     (b)  Whose facility is located within a county that has
153passed a countywide referendum authorizing video lottery
154terminal games at the facility that shall be called by
155affirmative vote of the governing body of the county where the
156facility is located or by a petition initiative referendum
157process pursuant to which no less than 10 percent of the
158qualified voters in the county have signed a petition in support
159of such authorizing referendum.
160     Section 2.  Subsections (21) through (27) are added to
161section 24.105, Florida Statutes, to read:
162     24.105  Powers and duties of department.--The department
163shall:
164     (21)  Have the capacity to support video lottery games at
165facilities of video lottery retailers by January 1, 2009.
166     (22)  Hear and decide promptly and in reasonable order all
167video-lottery-related license applications and enforcement
168proceedings for suspension or revocation of licenses.
169     (23)  Collect and disburse video lottery revenue due the
170department as described in this chapter.
171     (24)  Certify net terminal income of video lottery
172retailers by inspecting records or conducting audits or by any
173other reasonable means.
174     (25)  Maintain a list of licensed video lottery terminal
175vendors and a current list of all contracts between video
176lottery terminal vendors and video lottery retailers.
177     (26)  Approve an application for a video lottery retailer
178within 90 days after receipt of the application. A person meets
179all qualifications of licensure under this section if the person
180has been licensed under chapter 550 and meets the definition of
181a video lottery retailer under s. 24.103(11).
182     (27)  Adopt procedures by rule for scientifically testing
183and technically evaluating video lottery terminals for
184compliance with this chapter. The department may contract with
185an independent testing laboratory to scientifically test and
186technically evaluate video lottery games, video lottery
187terminals, and video lottery operating systems for compliance
188with this chapter. The independent testing laboratory must have
189a national reputation as demonstrably competent and qualified to
190scientifically test and evaluate all components of a video
191lottery gaming system and to otherwise perform all functions
192assigned to it under this chapter. The laboratory may not be
193owned or controlled by a video lottery terminal vendor or video
194lottery retailer. The selection of an independent testing
195laboratory shall be made from a list of one or more laboratories
196approved and licensed by the department.
197     Section 3.  Section 24.125, Florida Statutes, is created to
198read:
199     24.125  Rules authorized.--
200     (1)  The department may adopt rules similar to rules
201adopted under chapter 551 relating to:
202     (a)  The regulation of video lottery retailers, video
203lottery terminal vendors, video lottery games, and video lottery
204products.
205     (b)  Specifications for approving and authorizing video
206lottery terminals in order to maintain the integrity of video
207lottery games and terminals. The specifications may not limit
208the number of video lottery terminal vendors who supply
209terminals to fewer than four.
210     (c)  Hearing and approving or disapproving video-lottery-
211related license applications, and enforcement procedures related
212to suspension and revocation of licenses.
213     (d)  The collection and disbursement of video lottery
214revenue.
215     (e)  The certification of net terminal income of video
216lottery retailers.
217     (2)  Initial rules to permit the operation of video
218lotteries and the licensing of video lottery vendors shall be
219adopted by January 1, 2009. The department may adopt emergency
220rules under ss. 120.536(1) and 120.54(4) to implement this
221section.
222     Section 4.  Section 24.126, Florida Statutes, is created to
223read:
224     24.126  Video lottery; minimum age.--
225     (1)  A person who has not attained 21 years of age may not
226play a video lottery game.
227     (2)  Each video lottery retailer shall post a clear and
228conspicuous sign on all video lottery terminals which states:
229
230THE USE OF A VIDEO LOTTERY TERMINAL BY PERSONS UNDER THE AGE OF
23121 IS AGAINST FLORIDA LAW. PROOF OF AGE IS REQUIRED FOR USE.
232
233     (3)  Any person who violates this section commits a
234misdemeanor of the second degree, punishable as provided in s.
235775.082 or s. 775.083.
236     Section 5.  Section 24.127, Florida Statutes, is created to
237read:
238     24.127  Video lottery games.--
239     (1)  Video lottery games may be offered by a video lottery
240retailer only at the pari-mutuel facility at which the video
241lottery retailer is licensed to conduct pari-mutuel wagering, or
242at its relocated licensed pari-mutuel facility if the relocation
243of such facility has been approved by the Division of Pari-
244mutuel Wagering pursuant to s. 550.0555. During any calendar
245year in which a video lottery retailer maintains video lottery
246terminals, the retailer must be licensed to conduct a full
247schedule of live racing or games, as defined in s. 550.002(11),
248including the conduct of racing or games under s. 550.475, or be
249authorized to receive broadcasts of horseraces under s.
250550.6308. The department shall waive such requirements upon a
251showing that the failure to conduct racing or games resulted
252from a natural disaster, strike, or other act beyond the control
253of the permitholder, including legal restrictions or
254prohibitions placed on the permitholder's activities. If the
255retailer does not comply with the requirement to conduct a full
256schedule of racing or games for any other reason, the department
257shall order the retailer to suspend its video lottery operation.
258The department may assess an administrative fine, not to exceed
259$5,000 per video lottery terminal per day, against any retailer
260who does not suspend its video lottery operation when ordered to
261do so by the department. The department may enforce a suspension
262order or administrative fine as provided in s. 120.69. Each
263video lottery retailer shall post a bond payable to the state in
264an amount determined by the department as sufficient to
265guarantee the payment of revenue due in any payment period. The
266initial bond prior to commencement of operations by the video
267lottery retailer shall be $2 million, issued by a surety
268approved by the department, conditioned to make the payments to
269the department. The bond shall be separate from the bond
270required by s. 550.125.
271     (2)  Each video lottery retailer shall determine the
272following pertaining to the video lottery terminals located on
273its premises:
274     (a)  Number of video lottery terminals, not to exceed 2,000
275at any pari-mutuel facility; however, any pari-mutuel facility
276that also holds a slot machine license is limited to a
277combination of video lottery terminals and slot machines equal
278to the maximum number of slot machines authorized for such
279facility.
280     (b)  Dates and hours during which the video lottery
281terminals are available for play, not to exceed 18 hours a day
282during the week and 24 hours a day on weekends, except that the
283hours of operation may be extended by majority vote of the
284governing body of the municipality where the retailer is located
285or the governing body of the county if the retailer is not
286located in a municipality.
287     (c)  Mix of games available for play on video lottery
288terminals.
289     (d)  Use of currency, coins, tokens, vouchers, electronic
290credits, or anything of value.
291     (e)  Location and movement of video lottery terminals on
292the premises.
293     (f)  Staffing of video lottery terminal operations on the
294premises.
295     (g)  Minimum and maximum betting amounts and the payout,
296based upon a suitable range, as determined by the video lottery
297retailer, with a minimum of 85 percent of the amount of
298currency, credits, vouchers, or anything of value put into a
299video lottery terminal.
300     (3)  Each video lottery retailer shall notify the
301department before commencing the initial operation of video
302lottery games.
303     (4)  To facilitate the auditing and security programs that
304are critical to the integrity of the video lottery system, the
305department shall have overall control of the entire system. Each
306video lottery terminal shall be linked, directly or indirectly,
307to a computer system operated by the department or by a vendor
308contracting with the department.
309     (5)  Video lottery games may be played at an authorized
310video lottery retailer's facility regardless of whether the
311retailer is conducting a pari-mutuel event.
312     (6)  Upon submission of the initial application for a video
313lottery retailer license and annually thereafter on the
314anniversary date of the issuance of the initial license, the
315licensee must pay a nonrefundable license fee of $3 million to
316the department. The license fee shall be deposited into the
317Operating Trust Fund of the Department of the Lottery to be used
318by the department to administer this act.
319     (7)  Income derived from video lottery operations is not
320subject to s. 24.121. The allocation of net terminal income
321derived from video lottery games shall be as follows:
322     (a)  An amount equal to 50 percent of net terminal income
323shall be remitted to the Operating Trust Fund for transfer to
324the Educational Enhancement Trust Fund.
325     (b)  An amount equal to 0.50 percent of net terminal income
326shall be paid by the video lottery retailer to the department to
327administer and regulate the operation of video lottery
328terminals. Funds in excess of the department's administrative
329costs shall be transferred to the Educational Enhancement Trust
330Fund.
331     (c)  In the absence of a contractual agreement with the
332county for a higher remittance amount, an amount equal to 0.925
333percent of net terminal income shall be remitted to the county
334where the facility is located.
335     (d)  In the absence of a contractual agreement with the
336municipality for an alternative remittance amount, an amount
337equal to 0.925 percent of net terminal income shall be remitted
338to the municipality if the facility is located in a
339municipality.
340
341Notwithstanding any local agreements to the contrary, pari-
342mutuel facilities authorized to have slot machines pursuant to
343s. 23, Art. X of the State Constitution shall be required to pay
344no more than the percentages specified in paragraphs (c) and
345(d). If necessary to comply with any covenant established
346pursuant to s. 1013.68(4), s. 1013.70(1), or s. 1013.737(3),
347funds transferred to the Educational Enhancement Trust Fund
348under paragraph (b) shall first be available to pay debt service
349on lottery bonds issued to fund school construction in the event
350lottery revenues are insufficient for such purpose or to satisfy
351debt service reserve requirements established in connection with
352lottery bonds. Such funds are subject to annual appropriation by
353the Legislature.
354     (8)  The allocation provided in subsection (7) shall be
355made weekly. Amounts allocated shall be remitted to the
356department by electronic transfer within 24 hours after the
357allocation is determined.
358     (9)  Any person who intentionally manipulates or attempts
359to manipulate the outcome, payoff, or operation of a video
360lottery terminal by physical or electronic tampering or other
361means commits a felony of the third degree, punishable as
362provided in s. 775.082, s. 775.083, or s. 775.084.
363     (10)  Notwithstanding s. 24.115, each video lottery
364retailer is responsible for payment of video lottery prizes.
365     (11)  In the area or room in a facility in which a video
366lottery terminal is placed, the video lottery retailer shall
367also place video monitors displaying live races or games being
368conducted in that facility. If live races or games are not being
369conducted, any simulcast races or games that are otherwise
370displayed in the facility shall be displayed. In each area or
371room, the retailer shall also provide a means for patrons to
372wager on pari-mutuel activity.
373     Section 6.  Section 24.128, Florida Statutes, is created to
374read:
375     24.128  Licensure of video lottery terminal vendors.--Video
376lottery terminal vendors shall be licensed by the department by
377October 1, 2008. The department may adopt emergency rules under
378ss. 120.536(1) and 120.54(4) to implement this section. The
379department may not license a person as a video lottery terminal
380vendor who has an interest in a video lottery retailer or a
381business relationship with a video lottery retailer other than
382as a vendor or lessor of video lottery terminals.
383     Section 7.  Section 24.129, Florida Statutes, is created to
384read:
385     24.129  Local zoning of pari-mutuel facilities.--The
386installation, operation, or use of a video lottery terminal on
387any property where pari-mutuel operations were or would have
388been lawful under any county or municipal zoning ordinance on
389July 1, 2007, does not change the character of the use of such
390property. Such use is lawful and consistent with pari-mutuel
391operations, and such use or the expansion or construction of
392facilities to accommodate video lottery terminals on the
393property is not subject to review or approval under land use,
394zoning, or site plan review or concurrency law, ordinance, or
395regulation by any governmental entity.
396     Section 8.  Section 24.130, Florida Statutes, is created to
397read:
398     24.130  Video lottery terminals.--
399     (1)  Video lottery terminals may not be offered for use or
400play in this state unless approved by the department.
401     (2)  Each video lottery terminal approved for use in this
402state must:
403     (a)  Be protected against manipulation to affect the random
404probabilities of winning plays.
405     (b)  Have one or more mechanisms that accept currency,
406coins, tokens, vouchers, or anything of value in exchange for
407game credits. Such mechanisms must be designed to prevent
408players from obtaining currency, coins, tokens, vouchers, or
409anything of value, or from obtaining game credits, by physical
410tampering.
411     (c)  Be capable of suspending play until reset at the
412direction of the department as a result of physical tampering.
413     (d)  Be capable of being linked to a central computer
414communications system to audit the operation, financial data,
415and program information, as required by the department.
416     Section 9.  Section 24.131, Florida Statutes, is created to
417read:
418     24.131  Video lottery terminal training program.--
419     (1)  Each licensed video lottery terminal vendor shall
420submit a training program for the service and maintenance of
421terminals and equipment for approval by the department. The
422training program must include an outline of the training
423curriculum; a list of instructors and their qualifications; a
424copy of the instructional materials; and the dates, times, and
425location of training classes. A service and maintenance program
426may not be held unless approved by the department.
427     (2)  Each video lottery terminal service employee must
428complete the requirements of the manufacturer's training program
429before performing service, maintenance, or repairs on video
430lottery terminals or associated equipment. Upon the successful
431completion of the training program by an employee, the
432department shall issue a certificate authorizing the employee to
433service, maintain, and repair video lottery terminals and
434associated equipment. A certificate of completion may not be
435issued to a person until the department determines that such
436person has completed the required training. Before being
437certified as a video lottery terminal service employee, a person
438must pass a background investigation conducted by the
439department. The department may revoke certification upon finding
440that a person is in violation of this chapter or department
441rule.
442     (3)  The department may adopt rules regarding the training,
443qualifications, and certification of video lottery terminal
444service employees.
445     Section 10.  Section 24.132, Florida Statutes, is created
446to read:
447     24.132  Video lottery retailer; agreements required.--
448     (1)  A video lottery retailer who holds a permit under
449chapter 550 to conduct pari-mutuel wagering meets of
450thoroughbred racing may not conduct video lottery games unless
451the retailer has on file with the division a binding written
452agreement governing the payment of purses on live thoroughbred
453races conducted at the retailer's pari-mutuel facility between
454the retailer and the association representing a majority of the
455thoroughbred racehorse owners and trainers at that location. In
456addition, a video lottery retailer may not conduct video lottery
457games unless it has on file with the department a binding
458written agreement between it and the Florida Thoroughbred
459Breeders' Association, Inc., governing the payment of breeders',
460stallion, and special racing awards on live thoroughbred races
461conducted at the retailer's pari-mutuel facility.
462     (a)  The agreement governing purses and the agreement
463governing awards may direct the payment of such purses and
464awards from revenues generated by any wagering or gaming that
465the applicant is authorized to conduct.
466     (b)  All purses and awards are subject to chapter 550. All
467sums for breeders', stallion, and special racing awards shall be
468remitted monthly to the Florida Thoroughbred Breeders'
469Association, Inc., for the payment of awards subject to the
470administrative fee authorized in s. 550.2625(3).
471     (2)  The department shall prohibit the operation of video
472lottery games at a retailer's premises if an agreement required
473under subsection (1) is terminated or otherwise ceases to
474operate or if the department determines that the retailer has
475materially failed to comply with the terms of an agreement.
476     (3)  If an agreement required under subsection (1) is not
477in place, either party may request the American Arbitration
478Association to furnish a list of 11 arbitrators, each of whom
479shall have at least 5 years of commercial arbitration experience
480and no financial interest in or prior relationship with any of
481the parties or their affiliated or related entities or
482principals. Each party to the agreement shall select a single
483arbitrator from the list provided within 10 days after receipt
484of the list, and the arbitrators selected shall choose one
485additional arbitrator from the same list within the next 10
486days.
487     (a)  If an agreement is not in place 60 days after the
488request for a list of arbitrators, the matter shall be
489immediately submitted for mandatory binding arbitration to
490resolve the disagreement between the parties. The three
491arbitrators selected shall constitute the panel that will
492arbitrate the dispute between the parties pursuant to the
493American Arbitration Association Commercial Arbitration Rules
494and chapter 682.
495     (b)  At the conclusion of the proceedings, which must be
496within 90 days after requesting the list of arbitrators, the
497arbitration panel shall present a proposed agreement to the
498parties which the majority of the panel believes equitably
499balances the rights, interests, obligations, and reasonable
500expectations of the parties. The parties shall immediately enter
501into such agreement, which shall satisfy the requirements of
502subsection (1) and permit the conduct of video lottery games by
503the video lottery retailer. The agreement is effective until the
504last day of the license or renewal period or until the parties
505enter into a different agreement. Each party shall pay its
506respective costs of arbitration and one-half of the costs of the
507arbitration panel unless the parties have agreed otherwise. If
508the agreement remains in place 120 days before the scheduled
509issuance of the next annual license renewal, the arbitration
510process established in this subsection shall begin again.
511     (c)  If neither of the agreements required under subsection
512(1) is in place, arbitration shall proceed independently with
513separate lists of arbitrators, arbitration panels, arbitration
514proceedings, and resulting agreements.
515     (d)  Arbitration and the resulting agreement governing the
516payment of purses under subsection (1) shall be limited to the
517payment of purses from net terminal income only.
518     (4)  A video lottery retailer who holds a limited
519intertrack waging license pursuant to s. 550.6308 shall make the
520following payments for the promotion and welfare of the
521thoroughbred racing industry:
522     (a)  An amount equal to 12.5 percent of the net terminal
523income shall be paid to thoroughbred pari-mutuel permitholders
524that are licensed to conduct live races for purses. If more than
525one permitholder is licensed to conduct live races during the
526state thoroughbred racing season, the video lottery retailer
527shall allocate these funds between the operating permitholders
528on a pro rata basis based on the total live handle generated
529during the previous racing season at the operating
530permitholders' facilities. An amount equal to 7.5 percent of the
531purse account generated under this paragraph shall be used for
532Florida Owners' Awards pursuant to an agreement executed by the
533permitholder, the Florida Thoroughbred Breeders' Association,
534Inc., and the association representing a majority of the
535thoroughbred racehorse owners and trainers at the permitholder's
536facility. If an agreement is not reached 60 days before the
537commencement of the permitholder's racing meet, the funds shall
538be used for overnight purses.
539     (b)  An amount equal to 1.25 percent of the net terminal
540income shall be paid for breeders', stallion, or special racing
541awards. The Florida Thoroughbred Breeders' Association, Inc.,
542may receive these payments from the video lottery retailer and
543make payments of awards earned. The Florida Thoroughbred
544Breeders' Association, Inc., may withhold up to 10 percent of
545the permitholder's payments under this paragraph as a fee for
546administering the payments of awards and for the general
547promotion of the industry. The video lottery retailer shall make
548weekly payments to the permitholders and to Florida Thoroughbred
549Breeders' Association, Inc., at the same time it remits its
550allocation to the department.
551     Section 11.  Section 24.133, Florida Statutes, is created
552to read:
553     24.133  Notice of availability of assistance for compulsive
554gambling required.--
555     (1)  The owner of each facility at which video lottery
556games are conducted shall post a sign within 50 feet of each
557entrance that displays the following statement:
558
559"IF YOU OR SOMEONE YOU KNOW HAS A GAMBLING PROBLEM, HELP IS
560AVAILABLE. CALL 1-800-426-7711."
561
562     (2)  The department may approve additional toll-free
563numbers to ensure compliance with this section.
564     Section 12.  Section 24.134, Florida Statutes, is created
565to read:
566     24.134  Compulsive gambling prevention program.--
567     (1)  Each video lottery retailer shall offer training to
568employees on responsible gaming and shall work with a compulsive
569gambling prevention program to recognize problem gaming
570situations and to implement responsible gaming programs and
571practices.
572     (2)  The department shall, subject to competitive bidding,
573contract for the provision of services related to the prevention
574of compulsive gambling. The contract shall provide for an
575advertising program to encourage responsible gaming practices
576and to publicize a gambling telephone help line. Such
577advertisements must be made both publicly and inside the gaming
578areas of the video lottery retailers' facilities. The terms of
579any contract for the provision of such services shall include
580accountability standards that must be met by any private
581provider. The failure of any private provider to meet any
582material terms of the contract, including the accountability
583standards, shall constitute a breach of contract or grounds for
584nonrenewal.
585     Section 13.  Section 24.136, Florida Statutes, is created
586to read:
587     24.136  Video lottery retailer caterer's license.--A video
588lottery retailer is entitled to a caterer's license pursuant to
589s. 565.02 on days on which the pari-mutuel facility is open to
590the public for video lottery play as authorized by this chapter.
591     Section 14.  Section 24.137, Florida Statutes, is created
592to read:
593     24.137  Other prohibited activities.--
594     (1)  Complimentary or reduced-cost alcoholic beverages may
595not be served to a person playing a video lottery terminal.
596Alcoholic beverages served to a person playing a video lottery
597terminal shall cost at least the same amount as alcoholic
598beverages served to the general public at a bar within the
599facility.
600     (2)  A video lottery retailer may not allow any automated
601teller machine or similar device that provides credit or
602dispenses cash to be located in the area where video lottery
603terminal gaming may be conducted pursuant to this chapter, nor
604may such retailer make loans, provide credit, or advance cash to
605enable a person to play a video lottery terminal. However,
606automated ticket redemption machines that dispense cash for the
607redemption of tickets may be located in such areas.
608     (3)  A video lottery retailer may not accept from any
609person or cash any personal, third-party, corporate, business,
610or government-issued check.
611     (4)  A video lottery terminal located within a video
612lottery retailer's facility shall accept only tickets or paper
613currency or an electronic payment system for wagering and shall
614return or deliver payouts to the player in the form of tickets
615that may be exchanged for cash, merchandise, or other items of
616value. The use of coins, credit or debit cards, tokens, or
617similar objects is prohibited. However, an electronic credit
618system may be used for receiving wagers and making payouts.
619     Section 15.  Section 24.138, Florida Statutes, is created
620to read:
621     24.138  Exclusions of certain persons.--In addition to the
622power to exclude certain persons from any facility of a video
623lottery retailer in this state, the department may exclude any
624person for conduct that would constitute, if the person were a
625licensee, a violation of this chapter, chapter 550, chapter 551,
626or a department rule. The department may exclude from any
627facility of a video lottery retailer any person who has been
628ejected from a facility of a video lottery retailer or slot
629machine licensee in this or any other state by the governmental
630department, agency, commission, or authority that regulates
631gaming in that state. This section does not abrogate the common
632law right of a video lottery retailer to exclude a patron
633absolutely in this state.
634     Section 16.  Section 24.139, Florida Statutes, is created
635to read:
636     24.139  Department office space.--A video lottery retailer
637shall provide adequate office space at no cost to the department
638for the oversight of video lottery terminal operations. The
639department shall adopt rules establishing the criteria for
640adequate space, configuration, and needed electronic and
641technological requirements for office space required by this
642section.
643     Section 17.  Subsection (24) of section 212.02, Florida
644Statues, is amended to read:
645     212.02  Definitions.--The following terms and phrases when
646used in this chapter have the meanings ascribed to them in this
647section, except where the context clearly indicates a different
648meaning:
649     (24)  "Coin-operated amusement machine" means any machine
650operated by coin, slug, token, coupon, or similar device for the
651purposes of entertainment or amusement. The term includes, but
652is not limited to, coin-operated pinball machines, music
653machines, juke boxes, mechanical games, video games, arcade
654games, billiard tables, moving picture viewers, shooting
655galleries, and all other similar amusement devices. The term
656does not include a video lottery terminal operated pursuant to
657chapter 24.
658     Section 18.  Subsection (4) of section 1011.62, Florida
659Statutes, is amended to read:
660     1011.62  Funds for operation of schools.--If the annual
661allocation from the Florida Education Finance Program to each
662district for operation of schools is not determined in the
663annual appropriations act or the substantive bill implementing
664the annual appropriations act, it shall be determined as
665follows:
666     (4)  COMPUTATION OF DISTRICT REQUIRED LOCAL EFFORT.--The
667Legislature shall prescribe the aggregate required local effort
668for all school districts collectively as an item in the General
669Appropriations Act for each fiscal year. The estimated video
670lottery terminal net income that is remitted to the Operating
671Trust Fund for transfer to the Educational Enhancement Trust
672Fund pursuant to s. 24.127(7) for the fiscal year shall be
673subtracted from the aggregate required local effort. The amount
674that each district shall provide annually toward the cost of the
675Florida Education Finance Program for kindergarten through grade
67612 programs shall be calculated as follows:
677     (a)  Estimated taxable value calculations.--
678     1.a.  Not later than 2 working days prior to July 19, the
679Department of Revenue shall certify to the Commissioner of
680Education its most recent estimate of the taxable value for
681school purposes in each school district and the total for all
682school districts in the state for the current calendar year
683based on the latest available data obtained from the local
684property appraisers. Not later than July 19, the Commissioner of
685Education shall compute a millage rate, rounded to the next
686highest one one-thousandth of a mill, which, when applied to 95
687percent of the estimated state total taxable value for school
688purposes, would generate the prescribed aggregate required local
689effort for that year for all districts. The Commissioner of
690Education shall certify to each district school board the
691millage rate, computed as prescribed in this subparagraph, as
692the minimum millage rate necessary to provide the district
693required local effort for that year.
694     b.  The General Appropriations Act shall direct the
695computation of the statewide adjusted aggregate amount for
696required local effort for all school districts collectively from
697ad valorem taxes to ensure that no school district's revenue
698from required local effort millage will produce more than 90
699percent of the district's total Florida Education Finance
700Program calculation, and the adjustment of the required local
701effort millage rate of each district that produces more than 90
702percent of its total Florida Education Finance Program
703entitlement to a level that will produce only 90 percent of its
704total Florida Education Finance Program entitlement in the July
705calculation.
706     2.  As revised data are received from property appraisers,
707the Department of Revenue shall amend the certification of the
708estimate of the taxable value for school purposes.
709     (b)  Final calculation.--
710     1.  On September 1 of each year, the Department of Revenue
711shall certify to the Commissioner of Education the total of the
712prior year final taxable value for school purposes in each
713school district and the total for all school districts in the
714state. The commissioner shall use the final taxable value
715certified on September 1 for school purposes for each school
716district in the final calculation of the annual Florida
717Education Finance Program allocations.
718     2.  For purposes of this paragraph, the final taxable value
719for school purposes shall be the taxable value for school
720purposes on which the tax bills are computed and mailed to the
721taxpayers, adjusted to reflect final administrative actions of
722value adjustment boards and judicial decisions pursuant to
723chapter 194. For each county that has not submitted a revised
724tax roll reflecting final value adjustment board actions and
725final judicial decisions, the Department of Revenue shall
726certify the most recent revision of the taxable value for school
727purposes. The value certified on September 1 shall be the final
728taxable value for school purposes for that year, and no further
729adjustments shall be made, except those made pursuant to
730paragraph (11)(b).
731     (c)  Equalization of required local effort.--
732     1.  The Department of Revenue shall include with its
733certifications provided pursuant to paragraph (a) its most
734recent determination of the assessment level of the prior year's
735assessment roll for each county and for the state as a whole.
736     2.  The Commissioner of Education shall adjust the required
737local effort millage of each district for the current year,
738computed pursuant to paragraph (a), as follows:
739     a.  The equalization factor for the prior year's assessment
740roll of each district shall be multiplied by 95 percent of the
741taxable value for school purposes shown on that roll and by the
742prior year's required local-effort millage, exclusive of any
743equalization adjustment made pursuant to this paragraph. The
744dollar amount so computed shall be the additional required local
745effort for equalization for the current year.
746     b.  Such equalization factor shall be computed as the
747quotient of the prior year's assessment level of the state as a
748whole divided by the prior year's assessment level of the
749county, from which quotient shall be subtracted 1.
750     c.  The dollar amount of additional required local effort
751for equalization for each district shall be converted to a
752millage rate, based on 95 percent of the current year's taxable
753value for that district, and added to the required local effort
754millage determined pursuant to paragraph (a).
755     3.  Notwithstanding the limitations imposed pursuant to s.
7561011.71(1), the total required local-effort millage, including
757additional required local effort for equalization, shall be an
758amount not to exceed 10 minus the maximum millage allowed as
759nonvoted discretionary millage, exclusive of millage authorized
760pursuant to s. 1011.71(2). Nothing herein shall be construed to
761allow a millage in excess of that authorized in s. 9, Art. VII
762of the State Constitution.
763     4.  For the purposes of this chapter, the term "assessment
764level" means the value-weighted mean assessment ratio for the
765county or state as a whole, as determined pursuant to s.
766195.096, or as subsequently adjusted. However, for those parcels
767studied pursuant to s. 195.096(3)(a)1. which are receiving the
768assessment limitation set forth in s. 193.155, and for which the
769assessed value is less than the just value, the department shall
770use the assessed value in the numerator and the denominator of
771such assessment ratio. In the event a court has adjudicated that
772the department failed to establish an accurate estimate of an
773assessment level of a county and recomputation resulting in an
774accurate estimate based upon the evidence before the court was
775not possible, that county shall be presumed to have an
776assessment level equal to that of the state as a whole.
777     5.  If, in the prior year, taxes were levied against an
778interim assessment roll pursuant to s. 193.1145, the assessment
779level and prior year's nonexempt assessed valuation used for the
780purposes of this paragraph shall be those of the interim
781assessment roll.
782     (d)  Exclusion.--
783     1.  In those instances in which:
784     a.  There is litigation either attacking the authority of
785the property appraiser to include certain property on the tax
786assessment roll as taxable property or contesting the assessed
787value of certain property on the tax assessment roll, and
788     b.  The assessed value of the property in contest involves
789more than 6 percent of the total nonexempt assessment roll, the
790plaintiff shall provide to the district school board of the
791county in which the property is located and to the Department of
792Education a certified copy of the petition and receipt for the
793good faith payment at the time they are filed with the court.
794     2.  For purposes of computing the required local effort for
795each district affected by such petition, the Department of
796Education shall exclude from the district's total nonexempt
797assessment roll the assessed value of the property in contest
798and shall add the amount of the good faith payment to the
799district's required local effort.
800     (e)  Recomputation.--Following final adjudication of any
801litigation on the basis of which an adjustment in taxable value
802was made pursuant to paragraph (d), the department shall
803recompute the required local effort for each district for each
804year affected by such adjustments, utilizing taxable values
805approved by the court, and shall adjust subsequent allocations
806to such districts accordingly.
807     Section 19.  Subsection (8) is added to section 550.09515,
808Florida Statutes, to read:
809     550.09515  Thoroughbred horse taxes; abandoned interest in
810a permit for nonpayment of taxes.--
811     (8)  Notwithstanding any other provision in this chapter, a
812thoroughbred permit that has been revoked by the division
813heretofore or hereafter pursuant to s. 550.5251 or has escheated
814to the state pursuant to this section shall be deemed to
815continue in existence and held by the division in abeyance
816subject to reissuance pursuant to this subsection. Any such
817permit shall be subject to reissuance by the division and shall
818be reissued to a qualified applicant for use at the same
819facility at which the permit was last operated as a thoroughbred
820permit. The prior holder of any revoked or escheated
821thoroughbred permit rendered subject to reissuance by this
822subsection shall not be disqualified for receipt of a reissued
823thoroughbred permit if the primary reason for the revocation or
824escheat of the thoroughbred permit was for any reason other than
825the prior holder's disqualification on grounds of moral
826turpitude. Nonpayment of taxes on handle shall not be considered
827a ground of moral turpitude. If more than one applicant applies
828for reissuance of a thoroughbred permit pursuant to the terms
829and conditions of this subsection, the division shall give
830preference to an applicant not currently in possession of
831another pari-mutuel permit issued pursuant to this chapter. Any
832permit reissued pursuant to this section shall be treated for
833purposes of determining its eligibility to be a video lottery
834retailer as if it had run a schedule of live racing during
835fiscal year 2007-2008 and been licensed to run a full schedule
836of live racing as of January 1, 2007.
837     Section 20.  For the 2008-2009 fiscal year, the sum of $10
838million in recurring funds is appropriated from the Operating
839Trust Fund in the Department of the Lottery and 24 full-time
840equivalent positions and associated salary rate of 1,276,000 are
841authorized to implement the provisions of this act.
842     Section 21.  This act shall take effect upon becoming a
843law.


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