Florida Senate - 2008 (Reformatted) SB 290

By Senator Geller

31-00162-08 2008290__

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A bill to be entitled

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An act relating to electronic gaming machines; amending s.

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

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F.S.; providing powers and duties of the Department of the

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Lottery pertaining to video lottery games; creating s.

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24.125, F.S.; providing for the adoption of rules;

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creating s. 24.126, F.S.; prohibiting certain persons from

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playing video lottery games; 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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providing for a license fee; providing for the

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distribution of income; providing for weekly allocations

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of income derived from video lottery operations; providing

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

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licensure of video lottery terminal vendors; providing for

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emergency rules; creating s. 24.129, F.S.; prohibiting

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certain local zoning ordinances; 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 departmental approval of

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such programs; providing certification requirements for

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such employees; providing for the adoption of rules;

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creating s. 24.132, F.S.; requiring video lottery

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retailers to execute certain agreements governing the

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payment of purses and special thoroughbred racing awards;

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requiring the remittance of funds pursuant to such

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agreements; authorizing the department to sanction certain

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breeders; prohibiting the operation of video lottery games

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in the absence of agreements; requiring arbitration if

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agreements are not in place; requiring the video lottery

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retailer to make certain payments for the promotion of the

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racing industry; creating s. 24.133, F.S.; requiring

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operators of facilities where video lottery games are

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conducted to post certain signs regarding compulsive

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gambling; creating s. 24.134, F.S.; providing for

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compulsive gambling prevention programs; creating s.

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

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lottery retailers; creating s. 24.137, F.S.; prohibiting

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video lottery retailers from engaging in certain

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activities; creating s. 24.138, F.S.; providing for the

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exclusion of certain persons from a retailer's premises;

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creating s. 24.139, F.S.; requiring retailers to provide

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office space for department employees; amending s. 212.02,

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F.S.; excluding video lottery terminals from the

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definition of the term "coin-operated amusement machine"

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for purposes of the sales and use tax; amending s.

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551.106, F.S.; providing for tax credits on slot machine

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revenues; providing an appropriation and authorizing

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additional positions; providing effective dates.

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

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     Section 1.  Subsections (7), (8), (9), (10), and (11) are

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added to 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 an electronically simulated

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game involving any element of chance, skill, or both, played on a

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video lottery terminal that, upon insertion of currency, coins,

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tokens, credits, vouchers, or anything of value, is available to

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play or simulate a lottery-type game. The games include, but are

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not limited to, lineup games, traditional card games, poker, and

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progressive games where the jackpot grows and accumulates as it

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is being played in a video lottery terminal, or network of video

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lottery terminals, using a cathode ray tube, video display

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screen, microprocessors, or other similar technology available

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now or in the future, as approved by the department. A player may

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receive a payoff in the form of currency, coins, tokens, credits,

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vouchers, or anything of value, automatically or in some other

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manner.

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     (8) "Video lottery terminal" means a machine or device,

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including associated equipment that is required to operate the

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machine or device upon which a video lottery game is played or

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operated. A video lottery terminal may use spinning reels or

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video displays or other similar technology available now or in

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the future, as approved by the department. A video lottery

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terminal is not a coin-operated amusement machine as defined in

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s. 212.02 and does not include an amusement game or machine as

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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 races or games, as described in s.

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550.002(11), between July 1, 2008, and June 30, 2009, or a person

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who is authorized to receive broadcasts of horseraces under s.

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550.6308.

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     Section 2.  Subsections (21), (22), (23), (24), (25), (26),

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and (27) are added to 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, conducting audits, or any other reasonable

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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 terminal retailer. The selection of an independent

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

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laboratories 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 the 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 administer 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 is younger than 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

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

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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

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to 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

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between July 1, 2008, and June 30, 2009, or at its relocated

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licensed pari-mutuel facility if the relocation of such

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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

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terminals, the retailer must be licensed to conduct a full

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schedule of live racing or games, as defined in s. 550.002(11),

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including the conduct of races or games under s. 550.475, or be

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authorized to receive broadcasts of horse races under s.

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550.6308. The department shall waive such requirements upon a

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showing that the failure to conduct races or games resulted

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from a natural disaster, strike, or other acts beyond the

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control of the permitholder, including legal restrictions or

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prohibitions placed on the permitholder's activities. If the

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retailer does not comply with the requirement to conduct a full

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schedule of races or games for any other reason, the department

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shall order the retailer to suspend its video lottery

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operation. The department may assess an administrative fine,

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not to exceed $5,000 per video lottery terminal per day,

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against any retailer who does not suspend its video lottery

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operation when ordered to do so by the department. The

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department may enforce a suspension order or administrative

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

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

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by the department as sufficient to guarantee the payment of

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revenue due in any payment period. The initial bond prior to

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commencement of operations by the video lottery retailer shall

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

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conditioned to make the payments to the department. The bond

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

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     (2) Each video lottery terminal retailer shall determine

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the following pertaining to the video lottery terminals located

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on its premises:

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

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1,500 at any pari-mutuel 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

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

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retailer is 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

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the premises;

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     (f) Staffing of video lottery terminal operations on the

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premises; and

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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

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currency, credits, vouchers, or anything of value put into a

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video lottery terminal.

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     (3) Each video lottery terminal retailer shall notify the

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department before commencing the initial operation of video

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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.

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Each video lottery terminal shall be linked, directly or

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indirectly, to a computer system operated by the department or

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by a vendor 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

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video 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

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used 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) Fifty percent shall be remitted to the Operating

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Trust Fund for transfer to the Education Enhancement Trust

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Fund.

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     (b) Fifty-hundredths percent shall be paid by the video

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lottery retailer to the department and shall be used to

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administer and regulate the operation of video lottery

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terminals. Funds in excess of the department's administrative

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costs shall be transferred to the Educational Enhancement Trust

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Fund.

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

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made weekly. Amounts allocated shall be remitted to the

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department by electronic transfer within 24 hours after the

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allocation is determined.

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     (9) Any person who intentionally manipulates, or who

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attempts to manipulate, the outcome, payoff, or operation of a

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video lottery terminal by physical or electronic tampering or

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other means commits a felony of the third degree, punishable as

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

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     (10) Notwithstanding s. 24.115, each video lottery

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retailer 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

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also place video monitors displaying live races or games being

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

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being conducted, any simulcast races or games that are

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otherwise displayed in the facility shall be displayed. In each

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area or room, the retailer shall also provide a means for

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patrons to wager on pari-mutuel activity.

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     Section 6.  Section 24.128, Florida Statutes, is created

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to read:

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     24.128 Licensure of video lottery terminal vendors.--

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Video lottery terminal vendors shall be licensed by the

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department by October 1, 2008. The department may adopt

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

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administer this section. The department may not license a

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person as a video lottery terminal vendor who has an interest

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in a video lottery retailer or a business relationship with a

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video lottery retailer other than as a vendor or lessor of

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video lottery terminals.

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     Section 7.  Section 24.129, Florida Statutes, is created

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to read:

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

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

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property where pari-mutuel operations were or would have been

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lawful under any county or municipal zoning ordinance on July

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1, 2006, does not change the character of the use of such

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property. Such use is lawful and consistent with pari-mutuel

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operations, and such use or the expansion or construction of

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facilities to accommodate video lottery terminals on the

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property is not subject to review or approval under land use,

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zoning, or site plan review, or concurrency law, ordinance, or

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regulation by any governmental entity.

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     Section 8.  Section 24.130, Florida Statutes, is created

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to read:

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     24.130 Video lottery terminals.--

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

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play in this state unless approved by the department.

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

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state must:

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     (a) Be protected against manipulation to affect the

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random probabilities of winning plays.

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

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

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game credits. Such mechanisms must be designed to prevent

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players from obtaining currency, coins, tokens, vouchers, or

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anything of value, or from obtaining game credits, by physical

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tampering.

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

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direction of the department as a result of physical tampering.

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

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communications system to audit the operation, financial data,

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and program information, as required by the department.

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     Section 9.  Section 24.131, Florida Statutes, is created

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to read:

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     24.131 Video lottery terminal training program.--

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     (1) Each licensed video lottery terminal vendor shall

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submit a training program for the service and maintenance of

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terminals and equipment for approval by the department. The

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training program must include an outline of the training

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curriculum; a list of instructors and their qualifications; a

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

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location of training classes. A service and maintenance program

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may not be held unless approved by the department.

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     (2) Each video lottery terminal service employee must

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complete the requirements of the manufacturer's training

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program before performing service, maintenance, or repairs on

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video lottery terminals or associated equipment. Upon the

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successful completion of the training program by an employee,

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the department shall issue a certificate authorizing the

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employee to service, maintain, and repair video lottery

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terminals and associated equipment. A certificate of completion

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may not be issued to a person until the department determines

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that such person has completed the required training. Before

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being certified as a video lottery terminal service employee, a

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person must pass a background investigation conducted by the

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department. The department may revoke certification upon

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finding that a person is in violation of this chapter or

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department rule.

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     (3) The department may adopt rules regarding the

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training, qualifications, and certification of video lottery

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terminal service employees.

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     Section 10.  Section 24.132, Florida Statutes, is created

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to read:

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     24.132 Video lottery retailer; agreements required.--

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

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chapter 550 to conduct pari-mutuel wagering meets of

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thoroughbred racing may not conduct video lottery games unless

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the retailer has on file with the division a binding written

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agreement governing the payment of purses on live thoroughbred

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

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the retailer and the association representing a majority of the

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thoroughbred racehorse owners and trainers at that location. In

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addition, a video lottery retailer may not conduct video

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lottery games unless it has on file with the department a

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binding written agreement between it and the Florida

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Thoroughbred Breeders' Association governing the payment of

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breeders', stallion, and special racing awards on live

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thoroughbred races conducted at the retailer's pari-mutuel

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facility.

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     (a) The agreement governing purses and the agreement

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governing awards may direct the payment of such purses and

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awards from revenues generated by any wagering or gaming that

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the applicant is authorized to conduct.

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

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

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be remitted monthly to the Florida Thoroughbred Breeders'

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Association for the payment of awards subject to the

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administrative fee authorized in s. 550.2625(3).

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     (2) The department shall prohibit the operation of video

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

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under subsection (1) is terminated or otherwise ceases to

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operate or if the department determines that the retailer has

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materially failed to comply with the terms of an agreement.

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

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in place, either party may request the American Arbitration

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

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shall have at least 5 years of commercial arbitration

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experience and no financial interest in or prior relationship

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with any of the parties or their affiliated or related entities

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or principals. Each party to the agreement shall select a

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single arbitrator from the list provided within 10 days after

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receipt of the list and the arbitrators selected shall choose

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one additional arbitrator from the same list within the next 10

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days.

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

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request for a list of arbitrators, the matter shall be

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immediately submitted for mandatory binding arbitration to

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resolve the disagreement between the parties. The three

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arbitrators selected shall constitute the panel that will

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arbitrate the dispute between the parties pursuant to the

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American Arbitration Association Commercial Arbitration Rules

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and chapter 682.

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

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within 90 days after requesting the list of arbitrators, the

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arbitration panel shall present a proposed agreement to the

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parties which the majority of the panel believes equitably

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balances the rights, interests, obligations, and reasonable

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expectations of the parties. The parties shall immediately

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enter into such agreement, which must satisfy the requirements

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

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by the video lottery retailer. The agreement is effective until

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

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parties enter into a different agreement. Each party shall pay

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

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of the arbitration panel unless the parties have agreed

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otherwise. If the agreement remains in place 120 days before

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the scheduled issuance of the next annual license renewal, the

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arbitration process established in this subsection shall begin

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again.

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     (c) If neither of the agreements required under

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subsection (1) are in place, arbitration shall proceed

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independently with separate lists of arbitrators, arbitration

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panels, arbitration proceedings, and resulting agreements.

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     (d) Arbitration and the resulting agreement governing the

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payment of purses under subsection (1) are limited to the

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payment of purses from net terminal income only.

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     (4) A video lottery retailer who holds a limited

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intertrack waging license pursuant to s. 550.6308 shall make

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the following payments for the promotion and welfare of the

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thoroughbred racing industry:

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

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shall be paid to thoroughbred pari-mutuel permitholders that

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

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permitholder is licensed to conduct live races during the state

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thoroughbred racing season, the video lottery retailer shall

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allocate these funds between the operating permitholders on a

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pro rata basis based on the total live handle generated during

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the previous racing season at the operating permitholders'

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

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generated under this paragraph shall be used for Florida

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Owners' Awards pursuant to an agreement executed by the

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permitholder, the Florida Thoroughbred Breeders' Association,

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and the association representing a majority of the thoroughbred

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racehorse owners and trainers at the permitholder's facility.

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If an agreement is not reached 60 days before the commencement

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

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overnight purses.

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

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

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awards. The Florida Thoroughbred Breeders' Association may

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receive these payments from the video lottery retailer and make

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payments of awards earned. The Florida Thoroughbred Breeders'

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Association may withhold up to 10 percent of the permitholder's

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payments under this paragraph as a fee for administering the

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payments of awards and for the general promotion of the

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industry. The video lottery retailer shall make weekly payments

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to the permitholders and to the Florida Thoroughbred Breeders'

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Association at the same time it remits its allocation to the

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department.

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     Section 11.  Section 24.133, Florida Statutes, is created

464

to read:

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     24.133 Notice of availability of assistance for

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compulsive gambling required.--

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

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games are conducted shall post signs that display the following

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statement:

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

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AVAILABLE, CALL 1-800-426-7711.

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     (2) The department may approve additional toll-free

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numbers to ensure compliance with this section. The signs must

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be posted within 50 feet of each entrance.

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     Section 12.  Section 24.134, Florida Statutes, is created

478

to read:

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     24.134 Compulsive gambling prevention program.--

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     (1) The video lottery retailer shall offer training to

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employees on responsible gaming and shall work with a

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compulsive gambling prevention program to recognize problem

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gaming situations and to implement responsible gaming programs

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and practices.

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

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contract for the provision of services related to the

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prevention of compulsive gambling. The contract must provide

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for an advertising program to encourage responsible gaming

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practices and to publicize a gambling telephone help line. Such

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advertisements shall be made both publicly and inside the

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gaming areas of the video lottery retailers' facilities. The

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terms of any contract for the provision of such services must

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include accountability standards for the private provider. The

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failure of any private provider to meet any material terms of

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the contract, including the accountability standards,

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constitutes a breach of contract or grounds for nonrenewal.

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     Section 13.  Section 24.136, Florida Statutes, is created

498

to read:

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     24.136 Licensure of video lottery retailer.--A video

500

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

501

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

502

the public for video lottery play as authorized by this

503

chapter.

504

     Section 14.  Section 24.137, Florida Statutes, is created

505

to read:

506

     24.137 Other prohibited activities.--

507

     (1) Complimentary or reduced-cost alcoholic beverages may

508

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

509

Alcoholic beverages served to a person playing a video lottery

510

terminal shall cost at least the same amount as alcoholic

511

beverages served to the general public at a bar within the

512

facility.

513

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

514

teller machine or similar device that provides credit or

515

dispenses cash in the area where video lottery terminal gaming

516

may be conducted pursuant to this chapter and such retailer may

517

not make loans, provide credit, or advance cash to enable a

518

person to play a video lottery terminal. However, automated

519

ticket-redemption machines that dispense cash for the

520

redemption of tickets may be located in such areas.

521

     (3) A video lottery retailer may not accept or cash any

522

personal, third-party, corporate, business, or government-

523

issued check from any person.

524

     (4) A video lottery terminal located within a video

525

lottery retailer's facility shall accept only tickets or paper

526

currency or an electronic payment system for wagering, and

527

return or deliver payouts to the player in the form of tickets

528

that may be exchanged for cash, merchandise, or other items of

529

value. The use of coins, credit or debit cards, tokens, or

530

similar objects is prohibited. However, an electronic credit

531

system may be used for receiving wagers and making payouts.

532

     Section 15.  Section 24.138, Florida Statutes, is created

533

to read:

534

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

535

power to exclude certain persons from any facility of a video

536

lottery terminal retailer in this state, the department may

537

exclude any person for conduct that would constitute, if the

538

person were a licensee, a violation of this chapter, chapter

539

550, chapter 551, or a department rule. The department may

540

exclude from any facility of a video lottery terminal retailer

541

any person who has been ejected from a facility of a video

542

lottery retailer or slot machine licensee in this or any other

543

state by the governmental department, agency, commission, or

544

authority that regulates gaming in that state. This section

545

does not abrogate the common law right of a video lottery

546

terminal retailer to exclude a patron absolutely in this state.

547

     Section 16.  Section 24.139, Florida Statutes, is created

548

to read:

549

     24.139 Department office space.--A video lottery terminal

550

retailer shall provide adequate office space at no cost to the

551

department for the oversight of video lottery terminal

552

operations. The department shall adopt rules establishing the

553

criteria for adequate space, configuration, and needed

554

electronic and technological requirements for office space

555

required by this section.

556

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

557

Statues, is amended to read:

558

     212.02  Definitions.--The following terms and phrases when

559

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

560

section, except where the context clearly indicates a different

561

meaning:

562

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

563

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

564

the purposes of entertainment or amusement.  The term includes,

565

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

566

machines, juke boxes, mechanical games, video games, arcade

567

games, billiard tables, moving picture viewers, shooting

568

galleries, and all other similar amusement devices. The term

569

does not include a video lottery terminal operated pursuant to

570

chapter 24.

571

     Section 18.  Effective January 1, 2009, present

572

subsections (3), (4), and (5) of section 551.106, Florida

573

Statutes, are redesignated as subsections (4), (5), and (6),

574

respectively, and a new subsection (3) is added to that

575

section, to read:

576

     551.106  License fee; tax rate; penalties.--

577

     (3) TAX CREDITS ON SLOT MACHINE REVENUES.--Each slot

578

machine licensee shall receive in the current state fiscal year

579

a tax credit equal to the amount paid by the licensee in the

580

previous state fiscal year to the local government according to

581

any slot revenue-sharing agreements made with the local

582

government where the slot machine licensee is located. This tax

583

credit shall be applicable against the taxes otherwise due and

584

payable to the state under subsection (2). The total amount of

585

the tax credit may not exceed 3.7 percent of the total taxes

586

paid to the division under this section in the previous state

587

fiscal year.

588

     Section 19. For the 2008-2009 fiscal year, the sum of $10

589

million in recurring funds is appropriated from the Operating

590

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

591

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

592

authorized to implement the provisions of this act.

593

     Section 20.  Except as otherwise expressly provided in

594

this act, this act shall take effect upon becoming a law.

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