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A bill to be entitled

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An act relating to the Department of the Lottery and pari-

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mutuel facilities; amending s. 24.103, F.S.; providing

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definitions; amending s. 24.105, F.S.; providing powers

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and duties of the Department of the Lottery pertaining to

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video lottery games; creating s. 24.125, F.S.; providing

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for the adoption of rules; creating s. 24.126, F.S.;

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prohibiting certain persons from playing video lottery

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games; requiring video lottery retailers to post certain

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signage; providing penalties; creating s. 24.127, F.S.;

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providing requirements for the operation of video lottery

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games; providing for fines and orders of suspension;

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requiring the video lottery retailer to post bond;

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providing a payout percentage; providing for licensure and

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a license fee; providing for the distribution of net

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terminal income; providing for weekly allocations;

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providing penalties; creating s. 24.128, F.S.; providing

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for the licensure of video lottery terminal vendors;

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providing for emergency rules; creating s. 24.129, F.S.;

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providing that use or expansion of property for video

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lottery terminals is not subject to review or approval

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under land use, zoning, or site plan review or concurrency

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law, ordinance, or regulation; creating s. 24.130, F.S.;

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providing requirements for video lottery terminals;

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creating s. 24.131, F.S.; requiring video lottery terminal

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vendors to establish training programs for employees who

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service such terminals; requiring department approval of

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such programs; providing certification requirements;

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providing for the adoption of rules; creating s. 24.132,

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F.S.; requiring certain video lottery retailers to execute

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certain agreements governing the payment of purses and

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special thoroughbred racing awards; requiring the

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remittance of funds pursuant to such agreements;

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authorizing the department to sanction certain breeders;

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prohibiting the operation of video lottery games in the

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absence of agreements; requiring arbitration if agreements

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are not in place; requiring certain video lottery

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retailers to make certain payments for the promotion of

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the thoroughbred racing industry; creating s. 24.133,

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F.S.; requiring operators of facilities where video

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lottery games are conducted to post certain signs

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regarding compulsive gambling; creating s. 24.134, F.S.;

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providing for compulsive gambling prevention programs;

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creating s. 24.136, F.S.; authorizing a caterer's license

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for video lottery retailers; creating s. 24.137, F.S.;

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prohibiting video lottery retailers from engaging in

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certain activities; creating s. 24.138, F.S.; providing

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for the exclusion of certain persons from a video lottery

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retailer's premises; creating s. 24.139, F.S.; requiring

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video lottery retailers to provide office space for

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department employees; amending s. 212.02, F.S.; excluding

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video lottery terminals from the definition of the term

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"coin-operated amusement machine" for purposes of the

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sales and use tax; amending s. 1011.62, F.S.; decreasing

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the required local effort for school districts by certain

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estimated revenues from video lottery terminals; amending

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s. 550.09515, F.S.; providing for reissuance of a pari-

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mutuel permit that has been revoked by the Division of

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Pari-mutuel Wagering of the Department of Business and

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Professional Regulation or has escheated to the state;

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providing an appropriation and authorizing additional

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positions; providing an effective date.

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     WHEREAS, the pari-mutuel industry has been a valuable part

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of the Florida economy and a source of tax revenue for over 50

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years, and

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     WHEREAS, the onset of tribal gaming has had a

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disproportionate negative impact on revenues and taxes on the

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pari-mutuel facilities located within their primary market area,

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and

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     WHEREAS, the tribal casinos do not pay any tax to the state

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in connection with their gaming operations, and the loss of

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revenues to existing pari-mutuel facilities causes the state to

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lose tax revenues, and

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     WHEREAS, the state, in order to maintain the revenues in

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those areas directly affected, would allow those pari-mutuel

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facilities to become "video lottery retailers" subject to the

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requirements of this act, including the tax imposed on operations

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which would benefit the state and its education system, and

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     WHEREAS, the limited authorization of "video lottery

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retailers" at existing pari-mutuel facilities would ensure that

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the state would continue to recover taxes associated with pari-

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mutuel facilities that the state has enjoyed for over 50 years,

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NOW, THEREFORE,

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

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     Section 1.  Subsections (7) through (11) are added to

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section 24.103, Florida Statutes, to read:

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     24.103  Definitions.--As used in this act:

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     (7) "Video lottery game" means any machine, mechanical or

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electrical contrivance, terminal that may or may not be capable

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of downloading slot games from a central server system, or other

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device that, upon insertion of a coin, bill, ticket, token, or

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similar object or upon payment of any consideration whatsoever,

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including the use of any electronic payment system except a

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credit card or debit card, is available to play or operate, the

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play or operation of which, whether by reason of skill or

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application of the element of chance or both, may deliver or

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entitle the person or persons playing or operating the machine,

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contrivance, terminal, or other device to receive cash, billets,

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tickets, tokens, or electronic credits to be exchanged for cash

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or to receive merchandise or anything of value whatsoever,

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whether the payoff is made automatically from the machine or

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manually. The term includes associated equipment necessary to

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conduct the operation of the machine, contrivance, terminal, or

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other device. Slot machines may use spinning reels, video

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displays, or both.

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     (8) "Video lottery terminal" means a mechanical,

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electronic, computerized gaming device that is a technological

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machine capable of being linked to a centralized computer

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management system for regulating, managing, and auditing the

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operation, financial data, and program information, as required

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by the department. A video lottery terminal may be activated by

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insertion of a coin, bill, ticket, token, or similar object or

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upon payment of any consideration whatsoever, including the use

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of any electronic payment system except a credit card or debit

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card, and may entitle the person playing or operating the

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terminal to receive or may deliver to the person cash, billets,

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tickets, tokens, or electronic credits to be exchanged for cash.

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For purposes of this subsection:

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     (a) "Electronic or electromechanical facsimile" means a

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game played in an electronic or electromechanical format that

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replicates a game of chance by incorporating all of the

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characteristics of the game.

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     (b) "Mechanical, electronic, computerized, or other

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technological aid" means any machine or device that assists a

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player or the playing of an electronic game.

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130

A video lottery terminal is not a coin-operated amusement machine

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as defined in s. 212.02(24) and does not include an amusement

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game or machine as described in s. 849.161.

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     (9) "Video lottery terminal vendor" means any person

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licensed by the department who is in the business of selling,

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leasing, servicing, repairing, or upgrading video lottery

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terminals for video lottery retailers or who provides to the

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department or to a video lottery retailer computer equipment,

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software, or other functions related to video lottery terminals.

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     (10) "Net terminal income" means currency and other

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consideration placed into a video lottery terminal, less payouts

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to or credits redeemed by players.

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     (11) "Video lottery retailer" means a pari-mutuel

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permitholder under chapter 550 who holds a license to conduct a

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full schedule of live racing or games, as described in s.

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550.002(11), and:

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     (a) Whose facility is located on a site that is within 40

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miles of an operating tribal casino that was in existence on or

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before January 1, 2007; or

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     (b) Whose facility is located within a county that has

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passed a countywide referendum authorizing video lottery terminal

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games at the facility that shall be called by affirmative vote of

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the governing body of the county where the facility is located or

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by a petition initiative referendum process pursuant to which no

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less than 10 percent of the qualified voters in the county have

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signed a petition in support of such authorizing referendum.

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     Section 2.  Subsections (21) through (27) are added to

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section 24.105, Florida Statutes, to read:

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     24.105  Powers and duties of department.--The department

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shall:

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     (21) Have the capacity to support video lottery games at

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facilities of video lottery retailers by January 1, 2009.

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     (22) Hear and decide promptly and in reasonable order all

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video-lottery-related license applications and enforcement

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proceedings for suspension or revocation of licenses.

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     (23) Collect and disburse video lottery revenue due the

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department as described in this chapter.

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     (24) Certify net terminal income of video lottery retailers

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by inspecting records or conducting audits or by any other

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reasonable means.

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     (25) Maintain a list of licensed video lottery terminal

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vendors and a current list of all contracts between video lottery

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terminal vendors and video lottery retailers.

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     (26) Approve an application for a video lottery retailer

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within 90 days after receipt of the application. A person meets

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all qualifications of licensure under this section if the person

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has been licensed under chapter 550 and meets the definition of a

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video lottery retailer under s. 24.103(11).

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     (27) Adopt procedures by rule for scientifically testing

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and technically evaluating video lottery terminals for compliance

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with this chapter. The department may contract with an

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independent testing laboratory to scientifically test and

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technically evaluate video lottery games, video lottery

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terminals, and video lottery operating systems for compliance

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with this chapter. The independent testing laboratory must have a

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national reputation as demonstrably competent and qualified to

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scientifically test and evaluate all components of a video

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lottery gaming system and to otherwise perform all functions

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assigned to it under this chapter. The laboratory may not be

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owned or controlled by a video lottery terminal vendor or video

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lottery retailer. The selection of an independent testing

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laboratory shall be made from a list of one or more laboratories

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approved and licensed by the department.

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     Section 3.  Section 24.125, Florida Statutes, is created to

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read:

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     24.125 Rules authorized.--

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     (1) The department may adopt rules similar to rules adopted

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under chapter 551 relating to:

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     (a) The regulation of video lottery retailers, video

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lottery terminal vendors, video lottery games, and video lottery

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products.

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     (b) Specifications for approving and authorizing video

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lottery terminals in order to maintain the integrity of video

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lottery games and terminals. The specifications may not limit the

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number of video lottery terminal vendors who supply terminals to

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fewer than four.

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     (c) Hearing and approving or disapproving video-lottery-

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related license applications, and enforcement procedures related

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to suspension and revocation of licenses.

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     (d) The collection and disbursement of video lottery

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revenue.

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     (e) The certification of net terminal income of video

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lottery retailers.

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     (2) Initial rules to permit the operation of video

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lotteries and the licensing of video lottery vendors shall be

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adopted by January 1, 2009. The department may adopt emergency

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rules under ss. 120.536(1) and 120.54(4) to implement this

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section.

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     Section 4.  Section 24.126, Florida Statutes, is created to

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read:

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     24.126 Video lottery; minimum age.--

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     (1) A person who has not attained 21 years of age may not

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play a video lottery game.

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     (2) Each video lottery retailer shall post a clear and

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conspicuous sign on all video lottery terminals which states:

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THE USE OF A VIDEO LOTTERY TERMINAL BY PERSONS UNDER THE AGE OF

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21 IS AGAINST FLORIDA LAW. PROOF OF AGE IS REQUIRED FOR USE.

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     (3) Any person who violates this section commits a

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misdemeanor of the second degree, punishable as provided in s.

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775.082 or s. 775.083.

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     Section 5.  Section 24.127, Florida Statutes, is created to

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read:

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     24.127 Video lottery games.--

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     (1) Video lottery games may be offered by a video lottery

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retailer only at the pari-mutuel facility at which the video

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lottery retailer is licensed to conduct pari-mutuel wagering, or

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at its relocated licensed pari-mutuel facility if the relocation

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of such facility has been approved by the Division of Pari-mutuel

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Wagering pursuant to s. 550.0555. During any calendar year in

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which a video lottery retailer maintains video lottery terminals,

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the retailer must be licensed to conduct a full schedule of live

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racing or games, as defined in s. 550.002(11), including the

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conduct of racing or games under s. 550.475, or be authorized to

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receive broadcasts of horseraces under s. 550.6308. The

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department shall waive such requirements upon a showing that the

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failure to conduct racing or games resulted from a natural

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disaster, strike, or other act beyond the control of the

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permitholder, including legal restrictions or prohibitions placed

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on the permitholder's activities. If the retailer does not comply

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with the requirement to conduct a full schedule of racing or

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games for any other reason, the department shall order the

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retailer to suspend its video lottery operation. The department

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may assess an administrative fine, not to exceed $5,000 per video

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lottery terminal per day, against any retailer who does not

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suspend its video lottery operation when ordered to do so by the

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department. The department may enforce a suspension order or

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administrative fine as provided in s. 120.69. Each video lottery

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retailer shall post a bond payable to the state in an amount

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determined by the department as sufficient to guarantee the

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payment of revenue due in any payment period. The initial bond

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prior to commencement of operations by the video lottery retailer

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shall be $2 million, issued by a surety approved by the

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department, conditioned to make the payments to the department.

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The bond shall be separate from the bond required by s. 550.125.

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     (2) Each video lottery retailer shall determine the

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following pertaining to the video lottery terminals located on

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its premises:

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     (a) Number of video lottery terminals, not to exceed 1,000

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at any pari-mutuel facility; however, any pari-mutuel facility

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that also holds a slot machine license is limited to a

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combination of video lottery terminals and slot machines equal to

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the maximum number of slot machines authorized for such facility.

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     (b) Dates and hours during which the video lottery

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terminals are available for play, not to exceed 16 hours a day,

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except that the hours of operation may be extended by majority

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vote of the governing body of the municipality where the retailer

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is located or the governing body of the county if the retailer is

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not located in a municipality.

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     (c) Mix of games available for play on video lottery

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terminals.

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     (d) Use of currency, coins, tokens, vouchers, electronic

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credits, or anything of value.

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     (e) Location and movement of video lottery terminals on the

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premises.

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     (f) Staffing of video lottery terminal operations on the

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premises.

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     (g) Minimum and maximum betting amounts and the payout,

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based upon a suitable range, as determined by the video lottery

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retailer, with a minimum of 85 percent of the amount of currency,

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credits, vouchers, or anything of value put into a video lottery

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terminal.

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     (3) Each video lottery retailer shall notify the department

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before commencing the initial operation of video lottery games.

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     (4) To facilitate the auditing and security programs that

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are critical to the integrity of the video lottery system, the

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department shall have overall control of the entire system. Each

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video lottery terminal shall be linked, directly or indirectly,

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to a computer system operated by the department or by a vendor

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contracting with the department.

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     (5) Video lottery games may be played at an authorized

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video lottery retailer's facility regardless of whether the

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retailer is conducting a pari-mutuel event.

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     (6) Upon submission of the initial application for a video

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lottery retailer license and annually thereafter on the

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anniversary date of the issuance of the initial license, the

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licensee must pay a nonrefundable license fee of $3 million to

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the department. The license fee shall be deposited into the

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Operating Trust Fund of the Department of the Lottery to be used

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by the department to administer this act.

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     (7) Income derived from video lottery operations is not

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subject to s. 24.121. The allocation of net terminal income

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derived from video lottery games shall be as follows:

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     (a) An amount equal to 50 percent of net terminal income

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shall be remitted to the Operating Trust Fund for transfer to the

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Educational Enhancement Trust Fund.

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     (b) An amount equal to 0.50 percent of net terminal income

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shall be paid by the video lottery retailer to the department to

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administer and regulate the operation of video lottery terminals.

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Funds in excess of the department's administrative costs shall be

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transferred to the Educational Enhancement Trust Fund.

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     (c) In the absence of a contractual agreement with the

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county for a higher remittance amount, an amount equal to 0.925

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percent of net terminal income shall be remitted to the county

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where the facility is located.

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     (d) In the absence of a contractual agreement with the

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municipality for an alternative remittance amount, an amount

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equal to 0.925 percent of net terminal income shall be remitted

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to the municipality if the facility is located in a municipality.

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Notwithstanding any local agreements to the contrary, pari-mutuel

332

facilities authorized to have slot machines pursuant to s. 23,

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Art. X of the State Constitution shall be required to pay no more

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than the percentages specified in paragraphs (c) and (d). If

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necessary to comply with any covenant established pursuant to s.

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1013.68(4), s. 1013.70(1), or s. 1013.737(3), funds transferred

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to the Educational Enhancement Trust Fund under paragraph (b)

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shall first be available to pay debt service on lottery bonds

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issued to fund school construction in the event lottery revenues

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are insufficient for such purpose or to satisfy debt service

341

reserve requirements established in connection with lottery

342

bonds. Such funds are subject to annual appropriation by the

343

Legislature.

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     (8) The allocation provided in subsection (7) shall be made

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weekly. Amounts allocated shall be remitted to the department by

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electronic transfer within 24 hours after the allocation is

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determined.

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     (9) Any person who intentionally manipulates or attempts to

349

manipulate the outcome, payoff, or operation of a video lottery

350

terminal by physical or electronic tampering or other means

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commits a felony of the third degree, punishable as provided in

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s. 775.082, s. 775.083, or s. 775.084.

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     (10) Notwithstanding s. 24.115, each video lottery retailer

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is responsible for payment of video lottery prizes.

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     (11) In the area or room in a facility in which a video

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lottery terminal is placed, the video lottery retailer shall also

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place video monitors displaying live races or games being

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conducted in that facility. If live races or games are not being

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conducted, any simulcast races or games that are otherwise

360

displayed in the facility shall be displayed. In each area or

361

room, the retailer shall also provide a means for patrons to

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wager on pari-mutuel activity.

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     Section 6.  Section 24.128, Florida Statutes, is created to

364

read:

365

     24.128 Licensure of video lottery terminal vendors.--Video

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lottery terminal vendors shall be licensed by the department by

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October 1, 2008. The department may adopt emergency rules under

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ss. 120.536(1) and 120.54(4) to implement this section. The

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department may not license a person as a video lottery terminal

370

vendor who has an interest in a video lottery retailer or a

371

business relationship with a video lottery retailer other than as

372

a vendor or lessor of video lottery terminals.

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     Section 7.  Section 24.129, Florida Statutes, is created to

374

read:

375

     24.129 Local zoning of pari-mutuel facilities.--The

376

installation, operation, or use of a video lottery terminal on

377

any property where pari-mutuel operations were or would have been

378

lawful under any county or municipal zoning ordinance on July 1,

379

2007, does not change the character of the use of such property.

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Such use is lawful and consistent with pari-mutuel operations,

381

and such use or the expansion or construction of facilities to

382

accommodate video lottery terminals on the property is not

383

subject to review or approval under land use, zoning, or site

384

plan review or concurrency law, ordinance, or regulation by any

385

governmental entity.

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     Section 8.  Section 24.130, Florida Statutes, is created to

387

read:

388

     24.130 Video lottery terminals.--

389

     (1) Video lottery terminals may not be offered for use or

390

play in this state unless approved by the department.

391

     (2) Each video lottery terminal approved for use in this

392

state must:

393

     (a) Be protected against manipulation to affect the random

394

probabilities of winning plays.

395

     (b) Have one or more mechanisms that accept currency,

396

coins, tokens, vouchers, or anything of value in exchange for

397

game credits. Such mechanisms must be designed to prevent players

398

from obtaining currency, coins, tokens, vouchers, or anything of

399

value, or from obtaining game credits, by physical tampering.

400

     (c) Be capable of suspending play until reset at the

401

direction of the department as a result of physical tampering.

402

     (d) Be capable of being linked to a central computer

403

communications system to audit the operation, financial data, and

404

program information, as required by the department.

405

     Section 9.  Section 24.131, Florida Statutes, is created to

406

read:

407

     24.131 Video lottery terminal training program.--

408

     (1) Each licensed video lottery terminal vendor shall

409

submit a training program for the service and maintenance of

410

terminals and equipment for approval by the department. The

411

training program must include an outline of the training

412

curriculum; a list of instructors and their qualifications; a

413

copy of the instructional materials; and the dates, times, and

414

location of training classes. A service and maintenance program

415

may not be held unless approved by the department.

416

     (2) Each video lottery terminal service employee must

417

complete the requirements of the manufacturer's training program

418

before performing service, maintenance, or repairs on video

419

lottery terminals or associated equipment. Upon the successful

420

completion of the training program by an employee, the department

421

shall issue a certificate authorizing the employee to service,

422

maintain, and repair video lottery terminals and associated

423

equipment. A certificate of completion may not be issued to a

424

person until the department determines that such person has

425

completed the required training. Before being certified as a

426

video lottery terminal service employee, a person must pass a

427

background investigation conducted by the department. The

428

department may revoke certification upon finding that a person is

429

in violation of this chapter or department rule.

430

     (3) The department may adopt rules regarding the training,

431

qualifications, and certification of video lottery terminal

432

service employees.

433

     Section 10.  Section 24.132, Florida Statutes, is created to

434

read:

435

     24.132 Video lottery retailer; agreements required.--

436

     (1) A video lottery retailer who holds a permit under

437

chapter 550 to conduct pari-mutuel wagering meets of thoroughbred

438

racing may not conduct video lottery games unless the retailer

439

has on file with the division a binding written agreement

440

governing the payment of purses on live thoroughbred races

441

conducted at the retailer's pari-mutuel facility between the

442

retailer and the association representing a majority of the

443

thoroughbred racehorse owners and trainers at that location. In

444

addition, a video lottery retailer may not conduct video lottery

445

games unless it has on file with the department a binding written

446

agreement between it and the Florida Thoroughbred Breeders'

447

Association, Inc., governing the payment of breeders', stallion,

448

and special racing awards on live thoroughbred races conducted at

449

the retailer's pari-mutuel facility.

450

     (a) The agreement governing purses and the agreement

451

governing awards may direct the payment of such purses and awards

452

from revenues generated by any wagering or gaming that the

453

applicant is authorized to conduct.

454

     (b) All purses and awards are subject to chapter 550. All

455

sums for breeders', stallion, and special racing awards shall be

456

remitted monthly to the Florida Thoroughbred Breeders'

457

Association, Inc., for the payment of awards subject to the

458

administrative fee authorized in s. 550.2625(3).

459

     (2) The department shall prohibit the operation of video

460

lottery games at a retailer's premises if an agreement required

461

under subsection (1) is terminated or otherwise ceases to operate

462

or if the department determines that the retailer has materially

463

failed to comply with the terms of an agreement.

464

     (3) If an agreement required under subsection (1) is not in

465

place, either party may request the American Arbitration

466

Association to furnish a list of 11 arbitrators, each of whom

467

shall have at least 5 years of commercial arbitration experience

468

and no financial interest in or prior relationship with any of

469

the parties or their affiliated or related entities or

470

principals. Each party to the agreement shall select a single

471

arbitrator from the list provided within 10 days after receipt of

472

the list, and the arbitrators selected shall choose one

473

additional arbitrator from the same list within the next 10 days.

474

     (a) If an agreement is not in place 60 days after the

475

request for a list of arbitrators, the matter shall be

476

immediately submitted for mandatory binding arbitration to

477

resolve the disagreement between the parties. The three

478

arbitrators selected shall constitute the panel that will

479

arbitrate the dispute between the parties pursuant to the

480

American Arbitration Association Commercial Arbitration Rules and

481

chapter 682.

482

     (b) At the conclusion of the proceedings, which must be

483

within 90 days after requesting the list of arbitrators, the

484

arbitration panel shall present a proposed agreement to the

485

parties which the majority of the panel believes equitably

486

balances the rights, interests, obligations, and reasonable

487

expectations of the parties. The parties shall immediately enter

488

into such agreement, which shall satisfy the requirements of

489

subsection (1) and permit the conduct of video lottery games by

490

the video lottery retailer. The agreement is effective until the

491

last day of the license or renewal period or until the parties

492

enter into a different agreement. Each party shall pay its

493

respective costs of arbitration and one-half of the costs of the

494

arbitration panel unless the parties have agreed otherwise. If

495

the agreement remains in place 120 days before the scheduled

496

issuance of the next annual license renewal, the arbitration

497

process established in this subsection shall begin again.

498

     (c) If neither of the agreements required under subsection

499

(1) is in place, arbitration shall proceed independently with

500

separate lists of arbitrators, arbitration panels, arbitration

501

proceedings, and resulting agreements.

502

     (d) Arbitration and the resulting agreement governing the

503

payment of purses under subsection (1) shall be limited to the

504

payment of purses from net terminal income only.

505

     (4) A video lottery retailer who holds a limited intertrack

506

waging license pursuant to s. 550.6308 shall make the following

507

payments for the promotion and welfare of the thoroughbred racing

508

industry:

509

     (a) An amount equal to 12.5 percent of the net terminal

510

income shall be paid to thoroughbred pari-mutuel permitholders

511

that are licensed to conduct live races for purses. If more than

512

one permitholder is licensed to conduct live races during the

513

state thoroughbred racing season, the video lottery retailer

514

shall allocate these funds between the operating permitholders on

515

a pro rata basis based on the total live handle generated during

516

the previous racing season at the operating permitholders'

517

facilities. An amount equal to 7.5 percent of the purse account

518

generated under this paragraph shall be used for Florida Owners'

519

Awards pursuant to an agreement executed by the permitholder, the

520

Florida Thoroughbred Breeders' Association, Inc., and the

521

association representing a majority of the thoroughbred racehorse

522

owners and trainers at the permitholder's facility. If an

523

agreement is not reached 60 days before the commencement of the

524

permitholder's racing meet, the funds shall be used for overnight

525

purses.

526

     (b) An amount equal to 1.25 percent of the net terminal

527

income shall be paid for breeders', stallion, or special racing

528

awards. The Florida Thoroughbred Breeders' Association, Inc., may

529

receive these payments from the video lottery retailer and make

530

payments of awards earned. The Florida Thoroughbred Breeders'

531

Association, Inc., may withhold up to 10 percent of the

532

permitholder's payments under this paragraph as a fee for

533

administering the payments of awards and for the general

534

promotion of the industry. The video lottery retailer shall make

535

weekly payments to the permitholders and to Florida Thoroughbred

536

Breeders' Association, Inc., at the same time it remits its

537

allocation to the department.

538

     Section 11.  Section 24.133, Florida Statutes, is created to

539

read:

540

     24.133 Notice of availability of assistance for compulsive

541

gambling required.--

542

     (1) The owner of each facility at which video lottery games

543

are conducted shall post a sign within 50 feet of each entrance

544

that displays the following statement:

545

546

"IF YOU OR SOMEONE YOU KNOW HAS A GAMBLING PROBLEM, HELP IS

547

AVAILABLE. CALL 1-800-426-7711."

548

549

     (2) The department may approve additional toll-free numbers

550

to ensure compliance with this section.

551

     Section 12.  Section 24.134, Florida Statutes, is created to

552

read:

553

     24.134 Compulsive gambling prevention program.--

554

     (1) Each video lottery retailer shall offer training to

555

employees on responsible gaming and shall work with a compulsive

556

gambling prevention program to recognize problem gaming

557

situations and to implement responsible gaming programs and

558

practices.

559

     (2) The department shall, subject to competitive bidding,

560

contract for the provision of services related to the prevention

561

of compulsive gambling. The contract shall provide for an

562

advertising program to encourage responsible gaming practices and

563

to publicize a gambling telephone help line. Such advertisements

564

must be made both publicly and inside the gaming areas of the

565

video lottery retailers' facilities. The terms of any contract

566

for the provision of such services shall include accountability

567

standards that must be met by any private provider. The failure

568

of any private provider to meet any material terms of the

569

contract, including the accountability standards, shall

570

constitute a breach of contract or grounds for nonrenewal.

571

     Section 13.  Section 24.136, Florida Statutes, is created to

572

read:

573

     24.136 Video lottery retailer caterer's license.--A video

574

lottery retailer is entitled to a caterer's license pursuant to

575

s. 565.02 on days on which the pari-mutuel facility is open to

576

the public for video lottery play as authorized by this chapter.

577

     Section 14.  Section 24.137, Florida Statutes, is created to

578

read:

579

     24.137 Other prohibited activities.--

580

     (1) Complimentary or reduced-cost alcoholic beverages may

581

not be served to a person playing a video lottery terminal.

582

Alcoholic beverages served to a person playing a video lottery

583

terminal shall cost at least the same amount as alcoholic

584

beverages served to the general public at a bar within the

585

facility.

586

     (2) A video lottery retailer may not allow any automated

587

teller machine or similar device that provides credit or

588

dispenses cash to be located in the area where video lottery

589

terminal gaming may be conducted pursuant to this chapter, nor

590

may such retailer make loans, provide credit, or advance cash to

591

enable a person to play a video lottery terminal. However,

592

automated ticket redemption machines that dispense cash for the

593

redemption of tickets may be located in such areas.

594

     (3) A video lottery retailer may not accept from any person

595

or cash any personal, third-party, corporate, business, or

596

government-issued check.

597

     (4) A video lottery terminal located within a video lottery

598

retailer's facility shall accept only tickets or paper currency

599

or an electronic payment system for wagering and shall return or

600

deliver payouts to the player in the form of tickets that may be

601

exchanged for cash, merchandise, or other items of value. The use

602

of coins, credit or debit cards, tokens, or similar objects is

603

prohibited. However, an electronic credit system may be used for

604

receiving wagers and making payouts.

605

     Section 15.  Section 24.138, Florida Statutes, is created to

606

read:

607

     24.138 Exclusions of certain persons.--In addition to the

608

power to exclude certain persons from any facility of a video

609

lottery retailer in this state, the department may exclude any

610

person for conduct that would constitute, if the person were a

611

licensee, a violation of this chapter, chapter 550, chapter 551,

612

or a department rule. The department may exclude from any

613

facility of a video lottery retailer any person who has been

614

ejected from a facility of a video lottery retailer or slot

615

machine licensee in this or any other state by the governmental

616

department, agency, commission, or authority that regulates

617

gaming in that state. This section does not abrogate the common

618

law right of a video lottery retailer to exclude a patron

619

absolutely in this state.

620

     Section 16.  Section 24.139, Florida Statutes, is created to

621

read:

622

     24.139 Department office space.--A video lottery retailer

623

shall provide adequate office space at no cost to the department

624

for the oversight of video lottery terminal operations. The

625

department shall adopt rules establishing the criteria for

626

adequate space, configuration, and needed electronic and

627

technological requirements for office space required by this

628

section.

629

     Section 17.  Subsection (24) of section 212.02, Florida

630

Statues, is amended to read:

631

     212.02  Definitions.--The following terms and phrases when

632

used in this chapter have the meanings ascribed to them in this

633

section, except where the context clearly indicates a different

634

meaning:

635

     (24)  "Coin-operated amusement machine" means any machine

636

operated by coin, slug, token, coupon, or similar device for the

637

purposes of entertainment or amusement. The term includes, but is

638

not limited to, coin-operated pinball machines, music machines,

639

juke boxes, mechanical games, video games, arcade games, billiard

640

tables, moving picture viewers, shooting galleries, and all other

641

similar amusement devices. The term does not include a video

642

lottery terminal operated pursuant to chapter 24.

643

     Section 18.  Subsection (4) of section 1011.62, Florida

644

Statutes, is amended to read:

645

     1011.62  Funds for operation of schools.--If the annual

646

allocation from the Florida Education Finance Program to each

647

district for operation of schools is not determined in the annual

648

appropriations act or the substantive bill implementing the

649

annual appropriations act, it shall be determined as follows:

650

     (4)  COMPUTATION OF DISTRICT REQUIRED LOCAL EFFORT.--The

651

Legislature shall prescribe the aggregate required local effort

652

for all school districts collectively as an item in the General

653

Appropriations Act for each fiscal year. The estimated video

654

lottery terminal net income that is remitted to the Operating

655

Trust Fund for transfer to the Educational Enhancement Trust Fund

656

pursuant to s. 24.127(7) for the fiscal year shall be subtracted

657

from the aggregate required local effort. The amount that each

658

district shall provide annually toward the cost of the Florida

659

Education Finance Program for kindergarten through grade 12

660

programs shall be calculated as follows:

661

     (a)  Estimated taxable value calculations.--

662

     1.a.  Not later than 2 working days prior to July 19, the

663

Department of Revenue shall certify to the Commissioner of

664

Education its most recent estimate of the taxable value for

665

school purposes in each school district and the total for all

666

school districts in the state for the current calendar year based

667

on the latest available data obtained from the local property

668

appraisers. Not later than July 19, the Commissioner of Education

669

shall compute a millage rate, rounded to the next highest one

670

one-thousandth of a mill, which, when applied to 95 percent of

671

the estimated state total taxable value for school purposes,

672

would generate the prescribed aggregate required local effort for

673

that year for all districts. The Commissioner of Education shall

674

certify to each district school board the millage rate, computed

675

as prescribed in this subparagraph, as the minimum millage rate

676

necessary to provide the district required local effort for that

677

year.

678

     b.  The General Appropriations Act shall direct the

679

computation of the statewide adjusted aggregate amount for

680

required local effort for all school districts collectively from

681

ad valorem taxes to ensure that no school district's revenue from

682

required local effort millage will produce more than 90 percent

683

of the district's total Florida Education Finance Program

684

calculation, and the adjustment of the required local effort

685

millage rate of each district that produces more than 90 percent

686

of its total Florida Education Finance Program entitlement to a

687

level that will produce only 90 percent of its total Florida

688

Education Finance Program entitlement in the July calculation.

689

     2.  As revised data are received from property appraisers,

690

the Department of Revenue shall amend the certification of the

691

estimate of the taxable value for school purposes.

692

     (b)  Final calculation.--

693

     1.  On September 1 of each year, the Department of Revenue

694

shall certify to the Commissioner of Education the total of the

695

prior year final taxable value for school purposes in each school

696

district and the total for all school districts in the state. The

697

commissioner shall use the final taxable value certified on

698

September 1 for school purposes for each school district in the

699

final calculation of the annual Florida Education Finance Program

700

allocations.

701

     2.  For purposes of this paragraph, the final taxable value

702

for school purposes shall be the taxable value for school

703

purposes on which the tax bills are computed and mailed to the

704

taxpayers, adjusted to reflect final administrative actions of

705

value adjustment boards and judicial decisions pursuant to

706

chapter 194. For each county that has not submitted a revised tax

707

roll reflecting final value adjustment board actions and final

708

judicial decisions, the Department of Revenue shall certify the

709

most recent revision of the taxable value for school purposes.

710

The value certified on September 1 shall be the final taxable

711

value for school purposes for that year, and no further

712

adjustments shall be made, except those made pursuant to

713

paragraph (11)(b).

714

     (c)  Equalization of required local effort.--

715

     1.  The Department of Revenue shall include with its

716

certifications provided pursuant to paragraph (a) its most recent

717

determination of the assessment level of the prior year's

718

assessment roll for each county and for the state as a whole.

719

     2.  The Commissioner of Education shall adjust the required

720

local effort millage of each district for the current year,

721

computed pursuant to paragraph (a), as follows:

722

     a.  The equalization factor for the prior year's assessment

723

roll of each district shall be multiplied by 95 percent of the

724

taxable value for school purposes shown on that roll and by the

725

prior year's required local-effort millage, exclusive of any

726

equalization adjustment made pursuant to this paragraph. The

727

dollar amount so computed shall be the additional required local

728

effort for equalization for the current year.

729

     b.  Such equalization factor shall be computed as the

730

quotient of the prior year's assessment level of the state as a

731

whole divided by the prior year's assessment level of the county,

732

from which quotient shall be subtracted 1.

733

     c.  The dollar amount of additional required local effort

734

for equalization for each district shall be converted to a

735

millage rate, based on 95 percent of the current year's taxable

736

value for that district, and added to the required local effort

737

millage determined pursuant to paragraph (a).

738

     3.  Notwithstanding the limitations imposed pursuant to s.

739

1011.71(1), the total required local-effort millage, including

740

additional required local effort for equalization, shall be an

741

amount not to exceed 10 minus the maximum millage allowed as

742

nonvoted discretionary millage, exclusive of millage authorized

743

pursuant to s. 1011.71(2). Nothing herein shall be construed to

744

allow a millage in excess of that authorized in s. 9, Art. VII of

745

the State Constitution.

746

     4.  For the purposes of this chapter, the term "assessment

747

level" means the value-weighted mean assessment ratio for the

748

county or state as a whole, as determined pursuant to s. 195.096,

749

or as subsequently adjusted. However, for those parcels studied

750

pursuant to s. 195.096(3)(a)1. which are receiving the assessment

751

limitation set forth in s. 193.155, and for which the assessed

752

value is less than the just value, the department shall use the

753

assessed value in the numerator and the denominator of such

754

assessment ratio. In the event a court has adjudicated that the

755

department failed to establish an accurate estimate of an

756

assessment level of a county and recomputation resulting in an

757

accurate estimate based upon the evidence before the court was

758

not possible, that county shall be presumed to have an assessment

759

level equal to that of the state as a whole.

760

     5.  If, in the prior year, taxes were levied against an

761

interim assessment roll pursuant to s. 193.1145, the assessment

762

level and prior year's nonexempt assessed valuation used for the

763

purposes of this paragraph shall be those of the interim

764

assessment roll.

765

     (d)  Exclusion.--

766

     1.  In those instances in which:

767

     a.  There is litigation either attacking the authority of

768

the property appraiser to include certain property on the tax

769

assessment roll as taxable property or contesting the assessed

770

value of certain property on the tax assessment roll, and

771

     b.  The assessed value of the property in contest involves

772

more than 6 percent of the total nonexempt assessment roll, the

773

plaintiff shall provide to the district school board of the

774

county in which the property is located and to the Department of

775

Education a certified copy of the petition and receipt for the

776

good faith payment at the time they are filed with the court.

777

     2.  For purposes of computing the required local effort for

778

each district affected by such petition, the Department of

779

Education shall exclude from the district's total nonexempt

780

assessment roll the assessed value of the property in contest and

781

shall add the amount of the good faith payment to the district's

782

required local effort.

783

     (e)  Recomputation.--Following final adjudication of any

784

litigation on the basis of which an adjustment in taxable value

785

was made pursuant to paragraph (d), the department shall

786

recompute the required local effort for each district for each

787

year affected by such adjustments, utilizing taxable values

788

approved by the court, and shall adjust subsequent allocations to

789

such districts accordingly.

790

     Section 19.  Subsection (8) is added to section 550.09515,

791

Florida Statutes, to read:

792

     550.09515  Thoroughbred horse taxes; abandoned interest in a

793

permit for nonpayment of taxes.--

794

     (8) Notwithstanding any other provision in this chapter, a

795

thoroughbred permit that has been revoked by the division

796

heretofore or hereafter pursuant to s. 550.5251 or has escheated

797

to the state pursuant to this section shall be deemed to continue

798

in existence and held by the division in abeyance subject to

799

reissuance pursuant to this subsection. Any such permit shall be

800

subject to reissuance by the division and shall be reissued to a

801

qualified applicant for use at the same facility at which the

802

permit was last operated as a thoroughbred permit. The prior

803

holder of any revoked or escheated thoroughbred permit rendered

804

subject to reissuance by this subsection shall not be

805

disqualified for receipt of a reissued thoroughbred permit if the

806

primary reason for the revocation or escheat of the thoroughbred

807

permit was for any reason other than the prior holder's

808

disqualification on grounds of moral turpitude. Nonpayment of

809

taxes on handle shall not be considered a ground of moral

810

turpitude. If more than one applicant applies for reissuance of a

811

thoroughbred permit pursuant to the terms and conditions of this

812

subsection, the division shall give preference to an applicant

813

not currently in possession of another pari-mutuel permit issued

814

pursuant to this chapter.

815

     Section 20. For the 2008-2009 fiscal year, the sum of $10

816

million in recurring funds is appropriated from the Operating

817

Trust Fund in the Department of the Lottery and 24 full-time

818

equivalent positions and associated salary rate of 1,276,000 are

819

authorized to implement the provisions of this act.

820

     Section 21.  This act shall take effect upon becoming a law.