Florida Senate - 2021                          SENATOR AMENDMENT
       Bill No. CS for SB 16-A
       
       
       
       
       
       
                                Ì155302nÎ155302                         
       
                              LEGISLATIVE ACTION                        
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       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         546.16Consumer 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.