Bill Text: FL S0268 | 2015 | Regular Session | Comm Sub
Bill Title: Amusement Games or Machines
Spectrum:
Status: (Introduced - Dead) 2015-04-22 - Laid on Table, companion bill(s) passed, see CS/HB 641 (Ch. 2015-93) [S0268 Detail]
Download: Florida-2015-S0268-Comm_Sub.html
Florida Senate - 2015 CS for CS for SB 268 By the Committees on Finance and Tax; and Regulated Industries; and Senators Stargel, Latvala, and Abruzzo 593-03130-15 2015268c2 1 A bill to be entitled 2 An act relating to amusement games or machines; 3 creating s. 546.10, F.S.; providing legislative 4 findings; defining terms and phrases; authorizing an 5 amusement game or machine to be operated with 6 specified requirements; providing requirements for 7 classifying such a device as a Type 1 or a Type 2 8 amusement game or machine; providing that amusement 9 games or machines may only be located at specified 10 locations; specifying the maximum value on the 11 redemption value of a coupon or a point; requiring the 12 Department of Revenue to annually adjust the maximum 13 value; providing a formula for the adjustment of the 14 maximum value; requiring the department to publish the 15 amount of the adjusted maximum value; authorizing 16 certain persons or entities to enjoin the operation of 17 an amusement game or machine; providing penalties; 18 amending s. 551.102, F.S.; conforming a cross 19 reference; repealing s. 849.161, F.S., relating to 20 amusement games or machines; providing an effective 21 date. 22 23 Be It Enacted by the Legislature of the State of Florida: 24 25 Section 1. Section 546.10, Florida Statutes, is created to 26 read: 27 546.10 Amusement games or machines.— 28 (1) The Legislature finds that regulation of the operation 29 of skill-based amusement games or machines at specified 30 locations to ensure compliance with the requirements of law is 31 appropriate to prevent expansion of casino-style gambling. 32 (2) Therefore, the Legislature finds that there is a 33 compelling state interest in clarifying the operation and use of 34 amusement games or machines to ensure that provisions regulating 35 these devices are not subject to abuse or interpreted in any 36 manner as creating an exception to the state’s general 37 prohibitions against gambling. 38 (3) As used in this section, the term: 39 (a) “Amusement game or machine” means a game or machine 40 operated only for the bona fide entertainment of the general 41 public which a person activates by inserting or using currency 42 or a coin, card, coupon, slug, token, or similar device, and, by 43 the application of skill, with no material element of chance 44 inherent in the game or machine, the person playing or operating 45 the game or machine controls the outcome of the game. The term 46 does not include: 47 1. Any game or machine that uses mechanical slot reels, 48 video depictions of slot machine reels or symbols, or video 49 simulations or video representations of any other casino game, 50 including, but not limited to, any banked or banking card game, 51 poker, bingo, pull-tab, lotto, roulette, or craps. 52 2. A game in which the player does not control the outcome 53 of the game through skill or a game where the outcome is 54 determined by factors not visible, known, or predictable to the 55 player. 56 3. A video poker game or any other game or machine that may 57 be construed as a gambling device under the laws of this state. 58 4. Any game or device defined as a gambling device in 15 59 U.S.C. s. 1171, unless excluded under s. 1178. 60 (b) “Arcade amusement center” means a place of business 61 having at least 50 amusement games or machines on premises which 62 is operated for the entertainment of the general public and 63 tourists as a bona fide amusement facility. 64 (c) “Card” means a card other than a credit card or debit 65 card which is used to activate an amusement game or machine; 66 which contains a microprocessor chip, magnetic stripe, or other 67 means for storing, retrieving, and transferring information, 68 including information regarding coupons or points that are won 69 and that may be redeemed for merchandise; which is prefunded; 70 and for which the prefunded value is diminished by the cost of 71 play. 72 (d) “Game played” means the event beginning with the 73 activation of the amusement game or machine and ending when the 74 results of play are determined without the insertion or the use 75 of any additional currency, coin, card, coupon, slug, token, or 76 similar device to continue play. A free replay is not a separate 77 game played. 78 (e) The phrase “material element of chance inherent in the 79 game or machine” means any of the following: 80 1. The possibility of the player succeeding at the game or 81 accomplishing the player’s task is determined by the number or 82 ratio of prior wins or prior losses of players playing the game. 83 2. An award of value is not based solely on the player 84 achieving the object of the game or on the player’s score. 85 3. The number of the coupons or points awarded or the value 86 of the prize awarded for successfully playing the game can be 87 controlled by a source other than the player or players playing 88 the game. 89 4. The ability of the player to succeed at the game is 90 determined by a game feature or design that changes the effect 91 of the player’s actions and that is not discernible or known by 92 the player. 93 5. The accomplishment of the player’s task requires the 94 exercise of a skill that no player could exercise. 95 6. A computer-based or mechanical random number generator 96 or other factor that is not discernible, known, or predictable 97 by the player determines the outcome or winner of the game. 98 7. The game is designed or adapted with a control device to 99 allow manipulation of the game by the operator in order to 100 prevent a player from winning or to predetermine which player 101 will win. 102 (f) “Merchandise” means noncash prizes maintained on the 103 premises by the operator of the amusement game or machine, 104 including toys and novelties. The term does not include: 105 1. A cash equivalent, such as a gift card or certificate. 106 2. An alcoholic beverage. 107 3. A card, coupon, point, slug, token, or similar device 108 that can be used to activate an amusement game or machine. 109 4. A coupon or a point that has a redemption value greater 110 than the maximum value determined under subsection (8). 111 5. Any prize or other item, if the exchange or conversion 112 to cash or a cash equivalent is facilitated or permitted by the 113 owner or operator of the game or machine. 114 (g) “Redemption value” means the imputed value of a coupon 115 or a point, based on the wholesale cost of merchandise for which 116 the individual may redeem the coupon or point. 117 (h) “Truck stop” means a dealer registered pursuant to 118 chapter 212, excluding a marina, which: 119 1. Declares the sale of diesel fuel to be its primary fuel 120 business; and 121 2. Operates at least six functional diesel fuel pumps. 122 (4) Notwithstanding any other provision of law, an 123 amusement game or machine may be operated as provided in this 124 section. 125 (5) A Type 1 amusement game or machine is an amusement game 126 or machine that may entitle or enable a person to: 127 (a) Replay the game or device without the insertion or the 128 use of any additional currency, coin, card, coupon, slug, token, 129 or similar device, if: 130 1. The amusement game or machine can accumulate and react 131 to no more than 15 such replays; 132 2. The amusement game or machine can be discharged of 133 accumulated replays only by reactivating the game or device for 134 one additional play for each accumulated replay; 135 3. The amusement game or machine cannot make a permanent 136 record, directly or indirectly, of any free replay; 137 4. The amusement game or machine does not entitle the 138 player to receive any merchandise or a coupon or a point that 139 may be redeemed for merchandise; 140 5. An unused free replay may not be exchanged for anything 141 of value, including merchandise or a coupon or a point that may 142 be redeemed for merchandise; and 143 6. The amusement game or machine does not contain any 144 device that awards a credit and contains a circuit, meter, or 145 switch capable of removing and recording the removal of a credit 146 if the award of a credit is dependent upon chance; or 147 (b) Receive a coupon or a point that may only be redeemed 148 for merchandise, if: 149 1. The coupon or point has no value other than for 150 redemption for merchandise; 151 2. The redemption value of the coupon or point a person 152 receives for a single game played does not exceed the maximum 153 value determined under subsection (8). However, a player may 154 accumulate coupons or points to redeem for merchandise if there 155 is no single item of merchandise which has a wholesale cost of 156 more than 100 times the maximum value determined under 157 subsection (8), or for a prize consisting of more than one item, 158 unit, or part, if the aggregate wholesale cost of all items, 159 units, or parts does not exceed 100 times the maximum value 160 determined under subsection (8); and 161 3. The redemption value of coupons or points that a person 162 receives for playing multiple games simultaneously or competing 163 against others in a multiplayer game does not exceed the maximum 164 value determined under subsection (8). 165 (6) A Type 2 amusement game or machine is an amusement game 166 or machine that allows the player to manipulate a claw or 167 similar device within an enclosure and entitles or enables a 168 person to receive merchandise directly from the game or machine, 169 if the wholesale cost of the merchandise does not exceed 10 170 times the maximum value determined under subsection (8). 171 (7)(a) A Type 1 amusement game or machine may only be 172 located at: 173 1. A timeshare facility as defined in s. 721.05(17); 174 2. A public lodging establishment or public food service 175 establishment licensed pursuant to chapter 509; 176 3. The following premises, if the owner or operator of the 177 premises has a current license issued by the Department of 178 Business and Professional Regulation pursuant to chapter 509 or 179 chapters 561-568: 180 a. An arcade amusement center; 181 b. A bowling center, as defined in s. 849.141; or 182 c. A truck stop. 183 (b) A Type 2 amusement game or machine may only be located 184 at: 185 1. A timeshare facility as defined in s. 721.05(17); 186 2. An arcade amusement center; 187 3. A bowling center, as defined in s. 849.141; 188 4. The premises of a retailer, as defined in s. 212.02; 189 5. A public lodging establishment or public food service 190 establishment licensed pursuant to chapter 509; 191 6. A truck stop; or 192 7. The premises of a veterans’ service organization granted 193 a federal charter under Title 36, United States Code, or a 194 division, department, post, or chapter of such organization, for 195 which an alcoholic beverage license has been issued. 196 (8) For purposes of this section, the “maximum value” is 197 $5.25. Beginning September 30, 2017, and annually thereafter, 198 the Department of Revenue shall calculate the maximum value as 199 adjusted by the rate of inflation for the 12 months before 200 September 1, rounded to the nearest 5 cents. In calculating the 201 adjusted maximum value, the department shall multiply the prior 202 maximum value by one plus the percentage change in the Consumer 203 Price Index for All Urban Consumers, U.S. City Average, All 204 Items, not seasonally adjusted, or a successor index as 205 calculated by the United States Department of Labor. Each 206 adjusted maximum value shall take effect on the following 207 January 1, with the initial adjusted maximum value to take 208 effect on January 1, 2018. Beginning October 15, 2017, and 209 annually thereafter, the department shall publish the maximum 210 value, as adjusted, in a brochure accessible from its website 211 relating to sales and use tax on amusement machines. If the 212 release of the August Consumer Price Index for All Urban 213 Consumers occurs after September 15, in any given year, the 214 department shall publish the adjusted maximum value within 30 215 calendar days after the release date. 216 (9) Notwithstanding any other provision of law, an action 217 to enjoin the operation of any game or machine pursuant to or 218 for an alleged violation of this section or chapter 849 may be 219 brought only by: 220 (a) The Attorney General, the state attorney for the 221 circuit in which the game or machine is located, any federally 222 recognized tribal government possessing sovereign powers and 223 rights of self-governance which is a party to a compact with the 224 state, or in the case of an alleged violation of statutes that 225 it is charged with enforcing, the Department of Agriculture and 226 Consumer Services or the Department of Business and Professional 227 Regulation; or 228 (b) Any substantially affected person who is a resident of 229 the county where the place of business operating the game or 230 machine is located, or any substantially affected person who has 231 a business or residence within 5 miles of the place of business 232 operating the game or machine. 233 (10) In addition to other civil, administrative, and 234 criminal sanctions, any person who violates this section shall, 235 upon conviction, be guilty of a misdemeanor of the second 236 degree, punishable as provided in s. 775.082 or s. 775.083. Any 237 person convicted of violating this section a second time shall, 238 upon conviction, be guilty of a misdemeanor of the first degree, 239 punishable as provided in s. 775.082 or s. 775.083. Any person 240 who violates any provision of this section after having been 241 twice convicted shall be deemed a common offender and shall be 242 guilty of a felony of the third degree, punishable as provided 243 in s. 775.082, s. 775.083, or s. 775.084. 244 Section 2. Subsection (8) of section 551.102, Florida 245 Statutes, is amended to read: 246 551.102 Definitions.—As used in this chapter, the term: 247 (8) “Slot machine” means any mechanical or electrical 248 contrivance, terminal that may or may not be capable of 249 downloading slot games from a central server system, machine, or 250 other device that, upon insertion of a coin, bill, ticket, 251 token, or similar object or upon payment of any consideration 252 whatsoever, including the use of any electronic payment system 253 except a credit card or debit card, is available to play or 254 operate, the play or operation of which, whether by reason of 255 skill or application of the element of chance or both, may 256 deliver or entitle the person or persons playing or operating 257 the contrivance, terminal, machine, or other device to receive 258 cash, billets, tickets, tokens, or electronic credits to be 259 exchanged for cash or to receive merchandise or anything of 260 value whatsoever, whether the payoff is made automatically from 261 the machine or manually. The term includes associated equipment 262 necessary to conduct the operation of the contrivance, terminal, 263 machine, or other device. Slot machines may use spinning reels, 264 video displays, or both. A slot machine is not a “coin-operated 265 amusement machine” as defined in s. 212.02(24) or an amusement 266 game or machine as described in s. 546.10s. 849.161, and slot 267 machines are not subject to the tax imposed by s. 212.05(1)(h). 268 Section 3. Section 849.161, Florida Statutes, is repealed. 269 Section 4. This act shall take effect July 1, 2015.