Florida Senate - 2021 SENATOR AMENDMENT Bill No. CS for SB 16-A Ì155302nÎ155302 LEGISLATIVE ACTION Senate . House . . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— Senator Hutson moved the following: 1 Senate Amendment 2 3 Delete lines 174 - 305 4 and insert: 5 conduct fantasy sports contests within this state. A fantasy 6 contest operator that offered fantasy sports contests in this 7 state before May 1, 2021, may continue to offer fantasy sports 8 contests after the effective date of this act and until a final 9 decision has been made on its application for a fantasy contest 10 operator license if the contest operator files an application 11 for a license with the division within 90 days after the 12 application is made available to the public. 13 (2) The application must include: 14 (a) The full name of the applicant. 15 (b) If the applicant is a corporation, the name of the 16 state in which the applicant is incorporated and the names and 17 addresses of the officers, directors, and shareholders who hold 18 15 percent or more equity. 19 (c) If the applicant is a business entity other than a 20 corporation, the names and addresses of each principal, partner, 21 or shareholder who holds 15 percent or more equity. 22 (d) The names and addresses of the ultimate equitable 23 owners of the corporation or other business entity, if different 24 from those provided under paragraph (b) or paragraph (c), unless 25 the securities of the corporation or entity are registered 26 pursuant to s. 12 of the Securities Exchange Act of 1934, 15 27 U.S.C. ss. 78a-78kk, and: 28 1. The corporation or entity files with the United States 29 Securities and Exchange Commission the reports required by s. 13 30 of that act; or 31 2. The securities of the corporation or entity are 32 regularly traded on an established securities market in the 33 United States. 34 (e) The estimated number of fantasy sports contests to be 35 conducted by the applicant annually. 36 (f) A statement of the assets and liabilities of the 37 applicant. 38 (g) If required by the division, the names and addresses of 39 the officers and directors of any creditor of the applicant and 40 of stockholders who hold more than 10 percent of the stock of 41 the creditor. 42 (h) For each individual listed in the application pursuant 43 to paragraph (a), paragraph (b), paragraph (c), or paragraph 44 (d), a full set of fingerprints to be submitted to the division 45 or to a vendor, entity, or agency authorized by s. 943.053(13). 46 1. The division, vendor, entity, or agency shall forward 47 the fingerprints to the Department of Law Enforcement for state 48 processing, and the Department of Law Enforcement shall forward 49 the fingerprints to the Federal Bureau of Investigation for 50 national processing. 51 2. Fingerprints submitted to the Department of Law 52 Enforcement pursuant to this paragraph shall be retained by the 53 Department of Law Enforcement as provided in s. 943.05(2)(g) and 54 (h) and, when the Department of Law Enforcement begins 55 participation in the program, shall be enrolled in the Federal 56 Bureau of Investigation’s national retained print arrest 57 notification program. Any arrest record identified shall be 58 reported to the division by the Department of Law Enforcement. 59 (i) For each foreign national, such documents as necessary 60 to allow the division to conduct criminal history records checks 61 in the individual’s home country. The applicant must pay the 62 full cost of processing fingerprints and required documentation. 63 (3) A person or entity is not eligible for licensure as a 64 contest operator or for licensure renewal if an individual 65 required to be listed pursuant to paragraph (2)(a), paragraph 66 (2)(b), paragraph (2)(c), or paragraph (2)(d) is determined by 67 the division, after investigation, not to be of good moral 68 character or is found to have been convicted of a felony in this 69 state, any offense in another jurisdiction which would be 70 considered a felony if committed in this state, or a felony 71 under the laws of the United States. As used in this subsection, 72 the term “convicted” means having been found guilty, with or 73 without adjudication of guilt, as a result of a jury verdict, 74 nonjury trial, or entry of a plea of guilty or nolo contendere. 75 (4) The license of a contest operator is automatically 76 suspended upon entry of a final order imposing an administrative 77 fine against the contest operator, until the administrative fine 78 is paid, if 30 calendar days have elapsed since the entry of the 79 final order. The license of a contest operator may not be 80 renewed and an application for licensure as a contest operator 81 may not be approved if the contest operator or the applicant for 82 licensure as a contest operator is liable for an outstanding 83 administrative fine imposed under this act. Notwithstanding the 84 provisions of this subsection, a contest operator’s license may 85 not be suspended and an application for licensure as a contest 86 operator may not be denied if the contest operator or the 87 applicant has an appeal from a final order pending in any 88 appellate court. 89 Section 6. Section 546.16, Florida Statutes, is created to 90 read: 91 546.16 Consumer protection.— 92 (1) A contest operator must implement procedures for 93 fantasy sports contests which: 94 (a) Prevent its employees, their relatives, or persons 95 living in the same household as the employees from competing in 96 a fantasy sports contest in which a cash prize is awarded. 97 However, a contest operator may offer fantasy sports contests to 98 its employees in which the employees are the sole participants 99 in the contests. For the purposes of this paragraph, the term 100 “relative” means a spouse, father, mother, son, daughter, 101 grandfather, grandmother, brother, sister, uncle, aunt, cousin, 102 nephew, niece, father-in-law, mother-in-law, son-in-law, 103 daughter-in-law, brother-in-law, sister-in-law, stepfather, 104 stepmother, stepson, stepdaughter, stepbrother, stepsister, 105 half-brother, or half-sister. 106 (b) Prohibit the contest operator from being a contest 107 participant in a fantasy sports contest that he or she offers. 108 (c) Prevent its employees or agents from sharing with a 109 third party confidential information that could affect fantasy 110 sports contest play, until the information has been made 111 publicly available. 112 (d) Verify that contest participants are 21 years of age or 113 older. 114 (e) Restrict an individual who is a player, a game 115 official, or another participant in a real-world game or 116 competition from participating in a fantasy sports contest that 117 is determined, in whole or in part, on the performance of that 118 individual, the individual’s real-world team, or the accumulated 119 statistical results of the sport or competition in which he or 120 she is a player, game official, or other participant. 121 (f) Allow individuals to restrict or prevent their own 122 access to fantasy sports contests and take reasonable steps to 123 prevent those individuals from entering a fantasy sports 124 contest. 125 (g) Disclose the number of entries a single contest 126 participant may submit to each fantasy sports contest and take 127 reasonable steps to prevent participants from submitting more 128 than the allowable number of entries. 129 (h) Segregate contest participants’ funds from operational 130 funds or maintain a reserve in the form of cash, cash 131 equivalents, payment processor reserves, payment processor 132 receivables, an irrevocable letter of credit, a bond, or a 133 combination thereof in the total amount of deposits in contest 134 participants’ accounts for the benefit and protection of 135 authorized contest participants’ funds held in fantasy sports 136 contest accounts. 137 (2)(a) A contest operator must annually contract with a 138 third party to perform an independent audit, consistent with the 139 standards established by the American Institute of Certified 140 Public Accountants, to ensure compliance with this act. The 141 contest operator shall submit the results of the independent 142 audit to the division no later than 180 days after the end of 143 each fiscal year.