Florida Senate - 2021                        COMMITTEE AMENDMENT
       Bill No. SB 16-A
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  05/17/2021           .                                

       The Committee on Appropriations (Hutson) recommended the
    1         Senate Amendment (with title amendment)
    3         Delete lines 89 - 329
    4  and insert:
    5         (5)“Division” means the Division of Pari-mutuel Wagering
    6  of the Department of Business and Professional Regulation.
    7         (6)“Entry fee” means the cash or cash equivalent amount
    8  that is required to be paid by a person to a contest operator or
    9  noncommercial contest operator to participate in a fantasy
   10  sports contest.
   11         (7)“Fantasy sports contest” means a fantasy or simulation
   12  sports game or contest offered by a contest operator or a
   13  noncommercial contest operator in which a contest participant
   14  manages a fantasy or simulation sports team composed of athletes
   15  from a professional sports organization and which meets each of
   16  the following requirements:
   17         (a)All prizes and awards offered to winning contest
   18  participants are established and made known to the contest
   19  participants in advance of the game or contest and their value
   20  is not determined by the number of contest participants or the
   21  amount of any fees paid by those contest participants.
   22         (b)All winning outcomes reflect the relative knowledge and
   23  skill of the contest participants and are determined
   24  predominantly by accumulated statistical results of the
   25  performance of individuals, including athletes in the case of
   26  sporting events.
   27         (c)No winning outcome is based on the score, point spread,
   28  or any performance or performances of any single actual team or
   29  combination of such teams; solely on any single performance of
   30  an individual athlete or player in a single actual event; on a
   31  pari-mutuel event, as the term “pari-mutuel” is defined in s.
   32  550.002; on a game of poker or other card game; or on the
   33  performances of participants in collegiate, high school, or
   34  youth sporting events.
   35         (d)No casino graphics, themes, or titles, including, but
   36  not limited to, depictions of slot machine-style symbols, cards,
   37  dice, craps, roulette, or lotto, are displayed or depicted.
   38         (8)“Noncommercial contest operator” means a natural person
   39  who organizes and conducts a fantasy or simulation sports
   40  contest in which contest participants are charged entry fees for
   41  the right to participate; entry fees are collected, maintained,
   42  and distributed by the same natural person; the total entry fees
   43  collected, maintained, and distributed by such natural person do
   44  not exceed $1,500 per season or a total of $10,000 per calendar
   45  year; and all entry fees are returned to the contest
   46  participants in the form of prizes.
   47         Section 4. Section 546.14, Florida Statutes, is created to
   48  read:
   49         546.14Enforcement and administration; rulemaking.—
   50         (1)The division shall enforce and administer this act.
   51         (2)The division may:
   52         (a)Conduct investigations and monitor the operation and
   53  play of fantasy sports contests.
   54         (b)Review the books, accounts, and records of any current
   55  or former contest operator.
   56         (c)Deny, suspend, or revoke any license under this act for
   57  any violation of state law or rule.
   58         (d)Take testimony, issue summons and subpoenas for any
   59  witness, and issue subpoenas duces tecum in connection with any
   60  matter within its jurisdiction.
   61         (e)Monitor and ensure the proper collection and
   62  safeguarding of entry fees and the payment of contest prizes in
   63  accordance with consumer protection procedures enacted pursuant
   64  to s. 546.16.
   65         (f)Investigate any licensed or unlicensed person or entity
   66  when such person or entity is advertising as offering or
   67  providing, or is engaged in conducting, a fantasy sports contest
   68  that requires licensure under this act or when a contest
   69  operator or noncommercial contest operator is engaged in
   70  activities that do not comply with or are prohibited by this
   71  act. The division shall have the authority to issue an order to
   72  such licensed or unlicensed person or entity or contest operator
   73  or noncommercial contest operator to cease and desist the
   74  further conduct of such activities, to seek an injunction, or to
   75  take other appropriate action to enforce the requirements of
   76  this act.
   77         (3)The division shall revoke a contest operator’s license
   78  if the contest operator offers fantasy sports contests that
   79  violate s. 546.13(6)(c).
   80         (4)The division shall adopt rules to implement and
   81  administer this act. Such rules may not conflict with, and must
   82  be applied, construed, and interpreted in a manner consistent
   83  with, the gaming compact ratified, approved, and described in s.
   84  285.710(3).
   85         Section 5. Section 546.15, Florida Statutes, is created to
   86  read:
   87         546.15Licensing.—
   88         (1)A contest operator must be licensed by the division to
   89  conduct fantasy sports contests within this state.
   90         (2)The application must include:
   91         (a)The full name of the applicant.
   92         (b)If the applicant is a corporation, the name of the
   93  state in which the applicant is incorporated and the names and
   94  addresses of the officers, directors, and shareholders who hold
   95  15 percent or more equity.
   96         (c)If the applicant is a business entity other than a
   97  corporation, the names and addresses of each principal, partner,
   98  or shareholder who holds 15 percent or more equity.
   99         (d)The names and addresses of the ultimate equitable
  100  owners of the corporation or other business entity, if different
  101  from those provided under paragraph (b) or paragraph (c), unless
  102  the securities of the corporation or entity are registered
  103  pursuant to s. 12 of the Securities Exchange Act of 1934, 15
  104  U.S.C. ss. 78a-78kk, and:
  105         1.The corporation or entity files with the United States
  106  Securities and Exchange Commission the reports required by s. 13
  107  of that act; or
  108         2.The securities of the corporation or entity are
  109  regularly traded on an established securities market in the
  110  United States.
  111         (e)The estimated number of fantasy sports contests to be
  112  conducted by the applicant annually.
  113         (f)A statement of the assets and liabilities of the
  114  applicant.
  115         (g)If required by the division, the names and addresses of
  116  the officers and directors of any creditor of the applicant and
  117  of stockholders who hold more than 10 percent of the stock of
  118  the creditor.
  119         (h)For each individual listed in the application pursuant
  120  to paragraph (a), paragraph (b), paragraph (c), or paragraph
  121  (d), a full set of fingerprints to be submitted to the division
  122  or to a vendor, entity, or agency authorized by s. 943.053(13).
  123         1.The division, vendor, entity, or agency shall forward
  124  the fingerprints to the Department of Law Enforcement for state
  125  processing, and the Department of Law Enforcement shall forward
  126  the fingerprints to the Federal Bureau of Investigation for
  127  national processing.
  128         2.Fingerprints submitted to the Department of Law
  129  Enforcement pursuant to this paragraph shall be retained by the
  130  Department of Law Enforcement as provided in s. 943.05(2)(g) and
  131  (h) and, when the Department of Law Enforcement begins
  132  participation in the program, shall be enrolled in the Federal
  133  Bureau of Investigation’s national retained print arrest
  134  notification program. Any arrest record identified shall be
  135  reported to the division by the Department of Law Enforcement.
  136         (i)For each foreign national, such documents as necessary
  137  to allow the division to conduct criminal history records checks
  138  in the individual’s home country. The applicant must pay the
  139  full cost of processing fingerprints and required documentation.
  140         (3)A person or entity is not eligible for licensure as a
  141  contest operator or for licensure renewal if an individual
  142  required to be listed pursuant to paragraph (2)(a), paragraph
  143  (2)(b), paragraph (2)(c), or paragraph (2)(d) is determined by
  144  the division, after investigation, not to be of good moral
  145  character or is found to have been convicted of a felony in this
  146  state, any offense in another jurisdiction which would be
  147  considered a felony if committed in this state, or a felony
  148  under the laws of the United States. As used in this subsection,
  149  the term “convicted” means having been found guilty, with or
  150  without adjudication of guilt, as a result of a jury verdict,
  151  nonjury trial, or entry of a plea of guilty or nolo contendere.
  152         (4)The license of a contest operator is automatically
  153  suspended upon entry of a final order imposing an administrative
  154  fine against the contest operator, until the administrative fine
  155  is paid, if 30 calendar days have elapsed since the entry of the
  156  final order. The license of a contest operator may not be
  157  renewed and an application for licensure as a contest operator
  158  may not be approved if the contest operator or the applicant for
  159  licensure as a contest operator is liable for an outstanding
  160  administrative fine imposed under this act. Notwithstanding the
  161  provisions of this subsection, a contest operator’s license may
  162  not be suspended and an application for licensure as a contest
  163  operator may not be denied if the contest operator or the
  164  applicant has an appeal from a final order pending in any
  165  appellate court.
  166         Section 6. Section 546.16, Florida Statutes, is created to
  167  read:
  168         546.16Consumer protection.—
  169         (1)A contest operator must implement procedures for
  170  fantasy sports contests which:
  171         (a)Prevent its employees, their relatives, or persons
  172  living in the same household as the employees from competing in
  173  a fantasy sports contest in which a cash prize is awarded.
  174  However, a contest operator may offer fantasy sports contests to
  175  its employees in which the employees are the sole participants
  176  in the contests. For the purposes of this paragraph, the term
  177  “relative” means a spouse, father, mother, son, daughter,
  178  grandfather, grandmother, brother, sister, uncle, aunt, cousin,
  179  nephew, niece, father-in-law, mother-in-law, son-in-law,
  180  daughter-in-law, brother-in-law, sister-in-law, stepfather,
  181  stepmother, stepson, stepdaughter, stepbrother, stepsister,
  182  half-brother, or half-sister.
  183         (b)Prohibit the contest operator from being a contest
  184  participant in a fantasy sports contest that he or she offers.
  185         (c)Prevent its employees or agents from sharing with a
  186  third party confidential information that could affect fantasy
  187  sports contest play, until the information has been made
  188  publicly available.
  189         (d)Verify that contest participants are 21 years of age or
  190  older.
  191         (e)Restrict an individual who is a player, a game
  192  official, or another participant in a real-world game or
  193  competition from participating in a fantasy sports contest that
  194  is determined, in whole or in part, on the performance of that
  195  individual, the individual’s real-world team, or the accumulated
  196  statistical results of the sport or competition in which he or
  197  she is a player, game official, or other participant.
  198         (f)Allow individuals to restrict or prevent their own
  199  access to fantasy sports contests and take reasonable steps to
  200  prevent those individuals from entering a fantasy sports
  201  contest.
  202         (g)Limit the number of entries a single contest
  203  participant may submit to each fantasy sports contest and take
  204  reasonable steps to prevent participants from submitting more
  205  than the allowable number of entries.
  206         (h)Segregate contest participants’ funds from operational
  207  funds or maintain a reserve in the form of cash, cash
  208  equivalents, payment processor reserves, payment processor
  209  receivables, an irrevocable letter of credit, a bond, or a
  210  combination thereof in the total amount of deposits in contest
  211  participants’ accounts for the benefit and protection of
  212  authorized contest participants’ funds held in fantasy sports
  213  contest accounts.
  214         (2)(a)A contest operator must annually contract with a
  215  third party to perform an independent audit, consistent with the
  216  standards established by the American Institute of Certified
  217  Public Accountants, to ensure compliance with this act. The
  218  contest operator shall submit the results of the independent
  219  audit to the division no later than 90 days after the end of
  220  each annual licensing period.
  221         (b)Any data source and the corresponding data to determine
  222  the results of all fantasy sports contests offered by contest
  223  operators, other than noncommercial contest operators, must be
  224  complete, accurate, reliable, and appropriate to settle the
  225  outcome of the fantasy sports contests for which it is used.
  226         Section 7. Section 546.17, Florida Statutes, is created to
  227  read:
  228         546.17Records and reports.—Each contest operator shall
  229  keep and maintain daily records of its operations and shall
  230  maintain such records for at least 3 years. The records must
  231  sufficiently detail all financial transactions required to
  232  determine compliance with the requirements of this act and must
  233  be available for audit and inspection by the division or other
  234  law enforcement agencies during the contest operator’s regular
  235  business hours. The division shall adopt rules to implement this
  236  section.
  237         Section 8. Section 546.18, Florida Statutes, is created to
  238  read:
  239         546.18Penalties; applicability; exemption.—
  240         (1)(a)A contest operator, or an employee or agent thereof,
  241  who violates this act is subject to an administrative fine, not
  242  to exceed $5,000 for each violation and not to exceed $100,000
  243  in the aggregate. All fines imposed and collected under this
  244  subsection must be deposited with the Chief Financial Officer to
  245  the credit of the General Revenue Fund. An action to recover
  246  such penalties may be brought by the division or the Department
  247  of Legal Affairs in the name and on behalf of the state.
  248         (b)The penalty provisions established in this subsection
  249  do not apply to violations committed by a contest operator which
  250  occurred prior to the issuance of a license under this act if
  251  the contest operator applies for a license within 90 days after
  252  the date the division begins accepting applications, and
  253  receives a license within 240 days after such date.
  255  ================= T I T L E  A M E N D M E N T ================
  256  And the title is amended as follows:
  257         Delete lines 11 - 29
  258  and insert:
  259         take certain actions; requiring the division to revoke
  260         a contest operator’s license under certain
  261         circumstances; authorizing the division to adopt
  262         rules; creating s. 546.15, F.S.; providing application
  263         requirements for fantasy sports contest operator
  264         licenses; providing that specified persons or entities
  265         are not eligible for licensure under certain
  266         circumstances; defining the term “convicted”;
  267         specifying that a contest operator license is
  268         automatically suspended under certain circumstances;
  269         providing an exception; creating s. 546.16, F.S.;
  270         requiring a contest operator to implement specified
  271         consumer protection procedures under certain
  272         circumstances; defining the term “relative”; requiring
  273         a contest operator to annually contract with a third
  274         party to perform an independent audit; requiring a
  275         contest operator to submit the audit results to the
  276         division within a certain timeframe; requiring a
  277         contest operator to use data sources that meet
  278         specified requirements; creating s. 546.17, F.S.;