Bill Text: FL S0640 | 2010 | Regular Session | Comm Sub

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Bill Title: Pari-mutuel Wagering [CPSC]

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2010-04-30 - Died in Committee on Policy & Steering Committee on Ways and Means [S0640 Detail]

Download: Florida-2010-S0640-Comm_Sub.html

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Florida Senate - 2010                              CS for SB 640 
 
By the Committee on Regulated Industries; and Senator Jones 
580-04803-10                                           2010640c1 
1                        A bill to be entitled 
2         An act relating to pari-mutuel wagering; amending s. 
3         550.022, F.S.; redefining the term “full schedule of 
4         live racing or games” as it relates to certain jai 
5         alai permitholders who do not operate slot machines in 
6         their pari-mutuel facilities; amending s. 550.0951, 
7         F.S.; exempting pari-mutuel wagers at pari-mutuel 
8         facilities that do not operate slot machines from the 
9         tax on handle; imposing a surcharge on pari-mutuel 
10         licensees that do not operate slot machines if the 
11         taxes on slot machine revenue are less than a certain 
12         amount; specifying the maximum amount of the 
13         surcharge; providing for the calculation of the pro 
14         rata share of the surcharge for each pari-mutuel 
15         licensee that does not operate slot machines; 
16         specifying an exemption that may apply to the 
17         surcharge; providing for rules to set cost of 
18         regulation; amending s. 551.104, F.S.; revising slot 
19         machine license requirements; requiring a written 
20         agreement as a condition of license issuance or 
21         renewal; amending s. 849.086, F.S.; exempting a pari 
22         mutuel facility that operates a cardroom but does not 
23         operate slot machines from the tax on the gross 
24         receipts of the cardroom operations; revising the 
25         amounts that greyhound and jai alai permitholders that 
26         operate cardrooms must use to supplement greyhound 
27         purses or jai alai prize money; providing an effective 
28         date. 
29 
30         Be It Enacted by the Legislature of the State of Florida: 
31         Section 1. Subsection (11) of section 550.002, Florida 
32  Statutes, as amended by section 4 of chapter 2009-170, Laws of 
33  Florida, is amended to read: 
34         550.002 Definitions.—As used in this chapter, the term: 
35         (11) “Full schedule of live racing or games” means, for a 
36  greyhound or jai alai permitholder, the conduct of a combination 
37  of at least 100 live evening or matinee performances during the 
38  preceding year; for a permitholder who has a converted permit or 
39  filed an application on or before June 1, 1990, for a converted 
40  permit, the conduct of a combination of at least 100 live 
41  evening and matinee wagering performances during either of the 2 
42  preceding years; for a jai alai permitholder who does not 
43  operate slot machines in its pari-mutuel facility, who has 
44  conducted at least 100 live performances per year for at least 3 
45  consecutive 10 years after December 31, 1992, and whose handle 
46  on live jai alai games conducted at its pari-mutuel facility has 
47  been less than $4 million per state fiscal year for at least 2 
48  consecutive years after June 30, 1992, the conduct of a 
49  combination of at least 40 live evening or matinee performances 
50  during the preceding year; for a jai alai permitholder who 
51  operates slot machines in its pari-mutuel facility, the conduct 
52  of a combination of at least 150 performances during the 
53  preceding year; for a harness permitholder, the conduct of at 
54  least 100 live regular wagering performances during the 
55  preceding year; for a quarter horse permitholder at its facility 
56  unless an alternative schedule of at least 20 live regular 
57  wagering performances is agreed upon by the permitholder and 
58  either the Florida Quarter Horse Racing Association or the 
59  horsemen’s association representing the majority of the quarter 
60  horse owners and trainers at the facility and filed with the 
61  division along with its annual date application, in the 2010 
62  2011 fiscal year, the conduct of at least 20 regular wagering 
63  performances, in the 2011-2012 and 2012-2013 fiscal years, the 
64  conduct of at least 30 live regular wagering performances, and 
65  for every fiscal year after the 2012-2013 fiscal year, the 
66  conduct of at least 40 live regular wagering performances; for a 
67  quarter horse permitholder leasing another licensed racetrack, 
68  the conduct of 160 events at the leased facility; and for a 
69  thoroughbred permitholder, the conduct of at least 40 live 
70  regular wagering performances during the preceding year. For a 
71  permitholder which is restricted by statute to certain operating 
72  periods within the year when other members of its same class of 
73  permit are authorized to operate throughout the year, the 
74  specified number of live performances which constitute a full 
75  schedule of live racing or games shall be adjusted pro rata in 
76  accordance with the relationship between its authorized 
77  operating period and the full calendar year and the resulting 
78  specified number of live performances shall constitute the full 
79  schedule of live games for such permitholder and all other 
80  permitholders of the same class within 100 air miles of such 
81  permitholder. A live performance must consist of no fewer than 
82  eight races or games conducted live for each of a minimum of 
83  three performances each week at the permitholder’s licensed 
84  facility under a single admission charge. 
85         Section 2. Subsection (5) of section 550.0951, Florida 
86  Statutes, as amended by section 7 of chapter 2009-170, Laws of 
87  Florida, is amended to read: 
88         550.0951 Payment of daily license fee and taxes; 
89  penalties.— 
90         (5) PAYMENT AND DISPOSITION OF FEES AND TAXES.— 
91         (a) Payments imposed by this section shall be paid to the 
92  division. The division shall deposit these sums with the Chief 
93  Financial Officer, to the credit of the Pari-mutuel Wagering 
94  Trust Fund, hereby established. The permitholder shall remit to 
95  the division payment for the daily license fee, the admission 
96  tax, the tax on handle, and the breaks tax. Such payments shall 
97  be remitted by 3 p.m. Wednesday of each week for taxes imposed 
98  and collected for the preceding week ending on Sunday. Beginning 
99  on July 1, 2012, such payments shall be remitted by 3 p.m. on 
100  the 5th day of each calendar month for taxes imposed and 
101  collected for the preceding calendar month. If the 5th day of 
102  the calendar month falls on a weekend, payments shall be 
103  remitted by 3 p.m. the first Monday following the weekend. 
104  Permitholders shall file a report under oath by the 5th day of 
105  each calendar month for all taxes remitted during the preceding 
106  calendar month. Such payments shall be accompanied by a report 
107  under oath showing the total of all admissions, the pari-mutuel 
108  wagering activities for the preceding calendar month, and such 
109  other information as may be prescribed by the division. 
110         (b) Notwithstanding any other law, a pari-mutuel wager 
111  placed at a pari-mutuel facility that does not operate slot 
112  machines, directly or through a host facility, and regardless of 
113  whether such wager was made on a live, intertrack, or simulcast 
114  race or game, is exempt from the tax otherwise due and payable 
115  on handle on a wager placed at the pari-mutuel facility. 
116         (c) If, during any state fiscal year, the aggregate amount 
117  of tax on slot machine revenue paid to the state by all pari 
118  mutuel licensees for the operation of slot machines is less than 
119  the aggregate amount of tax paid on slot machine revenue by all 
120  pari-mutuel licensees in the 2008-2009 state fiscal year plus 
121  the amount of the tax exemptions in paragraph (b) and s. 
122  849.086(13)(a), a surcharge shall be imposed on pari-mutuel 
123  licensees that do not operate slot machines. The surcharge 
124  equals the difference between the aggregate amount of tax paid 
125  by all pari-mutuel licensees on slot machine revenue in the 
126  2008-2009 state fiscal year plus the amount of the tax 
127  exemptions in paragraph (b) and s. 849.086(13)(a) and the 
128  aggregate amount of tax on slot machine revenue paid to the 
129  state by all pari-mutuel licensees in the applicable state 
130  fiscal year, not to exceed $15 million. Each pari-mutuel 
131  facility that does not operate slot machines shall pay its pro 
132  rata share of the surcharge to the state within 45 days after 
133  the end of the state fiscal year. The pro rata share of the 
134  surcharge for each licensee that does not operate slot machines 
135  shall be calculated as the total amount of taxes that would have 
136  been due to the state if the exemptions under paragraph (b) and 
137  s. 849.086(13)(a) did not apply, divided by the total of such 
138  amounts for all licensees that did not operate slot machines. 
139         (d) A pari-mutuel licensee that does not operate slot 
140  machines may apply the exemption to the tax on handle under s. 
141  550.09514(1) to the surcharge under paragraph (c). The surcharge 
142  under paragraph (c) may not be reduced by any other exemption. 
143         (e) This subsection does not affect the calculation and 
144  payment of greyhound purses or jai-alai prize money. 
145         (f) The Division of Pari-mutuel Wagering is authorized to 
146  collect a fee from each pari-mutuel permitholder that does not 
147  operate slot machines for use by the division to cover the cost 
148  of regulation of said pari-mutuel permitholders which is not 
149  funded by current revenue sources. The division shall adopt 
150  rules to set the fee level and method of collection. 
151         Section 3. Paragraphs (a) and (c) of subsection (10) of 
152  section 551.104, Florida Statutes, as amended by section 20 of 
153  chapter 2009-170, Laws of Florida, is amended to read: 
154         551.104 License to conduct slot machine gaming.— 
155         (10)(a)1. No slot machine license or renewal thereof shall 
156  be issued to an applicant holding a permit under chapter 550 to 
157  conduct pari-mutuel wagering meets of thoroughbred racing unless 
158  the applicant has on file with the division a binding written 
159  agreement between the applicant and the Florida Horsemen’s 
160  Benevolent and Protective Association, Inc., governing the 
161  payment of purses on live thoroughbred races conducted at the 
162  licensee’s pari-mutuel facility. In addition, no slot machine 
163  license or renewal thereof shall be issued to such an applicant 
164  unless the applicant has on file with the division a binding 
165  written agreement between the applicant and the Florida 
166  Thoroughbred Breeders’ Association, Inc., governing the payment 
167  of breeders’, stallion, and special racing awards on live 
168  thoroughbred races conducted at the licensee’s pari-mutuel 
169  facility. The agreement governing purses and the agreement 
170  governing awards may direct the payment of such purses and 
171  awards from revenues generated by any wagering or gaming the 
172  applicant is authorized to conduct under Florida law. All purses 
173  and awards shall be subject to the terms of chapter 550. All 
174  sums for breeders’, stallion, and special racing awards shall be 
175  remitted monthly to the Florida Thoroughbred Breeders’ 
176  Association, Inc., for the payment of awards subject to the 
177  administrative fee authorized in s. 550.2625(3). 
178         2. No slot machine license or renewal thereof shall be 
179  issued to an applicant holding a permit under chapter 550 to 
180  conduct pari-mutuel wagering meets of quarter horse racing 
181  unless the applicant has on file with the division a binding 
182  written agreement between the applicant and the Florida Quarter 
183  Horse Racing Association or the association representing a 
184  majority of the horse owners and trainers at the applicant’s 
185  eligible facility, governing the payment of purses on live 
186  quarter horse races conducted at the licensee’s pari-mutuel 
187  facility. The agreement governing purses may direct the payment 
188  of such purses from revenues generated by any wagering or gaming 
189  the applicant is authorized to conduct under Florida law. All 
190  purses shall be subject to the terms of chapter 550. 
191         3. No slot machine license or renewal thereof shall be 
192  issued to an applicant holding a permit under chapter 550 to 
193  conduct pari-mutuel wagering meets of standardbred horse racing 
194  unless the applicant has on file with the division a binding 
195  written agreement between the applicant and the Florida 
196  Standardbred Breeders and Owners Association governing the 
197  payment of purses on live standardbred horse races conducted at 
198  the licensee’s pari-mutuel facility. The agreement governing 
199  purses may direct the payment of such purses from revenues 
200  generated by any wagering or gaming that the applicant is 
201  authorized to conduct under Florida law. All purses shall be 
202  subject to the terms of chapter 550. 
203         (b) The division shall suspend a slot machine license if 
204  one or more of the agreements required under paragraph (a) are 
205  terminated or otherwise cease to operate or if the division 
206  determines that the licensee is materially failing to comply 
207  with the terms of such an agreement. Any such suspension shall 
208  take place in accordance with chapter 120. 
209         (c)1. If an agreement required under paragraph (a) cannot 
210  be reached prior to the initial issuance of the slot machine 
211  license, either party may request arbitration or, in the case of 
212  a renewal, if an agreement required under paragraph (a) is not 
213  in place 120 days prior to the scheduled expiration date of the 
214  slot machine license, the applicant shall immediately ask the 
215  American Arbitration Association to furnish a list of 11 
216  arbitrators, each of whom shall have at least 5 years of 
217  commercial arbitration experience and no financial interest in 
218  or prior relationship with any of the parties or their 
219  affiliated or related entities or principals. Each required 
220  party to the agreement shall select a single arbitrator from the 
221  list provided by the American Arbitration Association within 10 
222  days of receipt, and the individuals so selected shall choose 
223  one additional arbitrator from the list within the next 10 days. 
224         2. If an agreement required under paragraph (a) is not in 
225  place 60 days after the request under subparagraph 1. in the 
226  case of an initial slot machine license or, in the case of a 
227  renewal, 60 days prior to the scheduled expiration date of the 
228  slot machine license, the matter shall be immediately submitted 
229  to mandatory binding arbitration to resolve the disagreement 
230  between the parties. The three arbitrators selected pursuant to 
231  subparagraph 1. shall constitute the panel that shall arbitrate 
232  the dispute between the parties pursuant to the American 
233  Arbitration Association Commercial Arbitration Rules and chapter 
234  682. 
235         3. At the conclusion of the proceedings, which shall be no 
236  later than 90 days after the request under subparagraph 1. in 
237  the case of an initial slot machine license or, in the case of a 
238  renewal, 30 days prior to the scheduled expiration date of the 
239  slot machine license, the arbitration panel shall present to the 
240  parties a proposed agreement that the majority of the panel 
241  believes equitably balances the rights, interests, obligations, 
242  and reasonable expectations of the parties. The parties shall 
243  immediately enter into such agreement, which shall satisfy the 
244  requirements of paragraph (a) and permit issuance of the pending 
245  annual slot machine license or renewal. The agreement produced 
246  by the arbitration panel under this subparagraph shall be 
247  effective until the last day of the license or renewal period or 
248  until the parties enter into a different agreement. Each party 
249  shall pay its respective costs of arbitration and shall pay one 
250  half of the costs of the arbitration panel, unless the parties 
251  otherwise agree. If the agreement produced by the arbitration 
252  panel under this subparagraph remains in place 120 days prior to 
253  the scheduled issuance of the next annual license renewal, then 
254  the arbitration process established in this paragraph will begin 
255  again. 
256         4. In the event that neither of the agreements required 
257  under paragraph (a) subparagraph (a)1. or the agreement required 
258  under subparagraph (a)2. are not in place by the deadlines 
259  established in this paragraph, arbitration regarding each 
260  agreement will proceed independently, with separate lists of 
261  arbitrators, arbitration panels, arbitration proceedings, and 
262  resulting agreements. 
263         5. With respect to the agreements required under paragraph 
264  (a) governing the payment of purses, the arbitration and 
265  resulting agreement called for under this paragraph shall be 
266  limited to the payment of purses from slot machine revenues 
267  only. 
268         Section 4. Paragraphs (a) and (d) of subsection (13) of 
269  section 849.086, Florida Statutes, as amended by section 24 of 
270  chapter 2009-170, Laws of Florida, are amended to read: 
271         849.086 Cardrooms authorized.— 
272         (13) TAXES AND OTHER PAYMENTS.— 
273         (a) Each cardroom operator shall pay a tax to the state of 
274  10 percent of the cardroom operation’s monthly gross receipts. 
275  However, a pari-mutuel facility that does not operate slot 
276  machines is exempt from the tax under this paragraph. 
277         (d)1. Each greyhound and jai alai permitholder that 
278  operates a cardroom facility and slot machines shall use at 
279  least 4 percent of such permitholder’s cardroom monthly gross 
280  receipts to supplement greyhound purses or jai alai prize money, 
281  respectively, during the permitholder’s next ensuing pari-mutuel 
282  meet. Each greyhound and jai alai permitholder that operates a 
283  cardroom facility but does not operate slot machines shall use 
284  at least 6 percent of such permitholder’s cardroom monthly gross 
285  receipts to supplement greyhound purses or jai alai prize money, 
286  respectively, during the permitholder’s next ensuing pari-mutuel 
287  meet. 
288         2. Each thoroughbred and harness horse racing permitholder 
289  that operates a cardroom facility shall use at least 50 percent 
290  of such permitholder’s cardroom monthly net proceeds as follows: 
291  47 percent to supplement purses and 3 percent to supplement 
292  breeders’ awards during the permitholder’s next ensuing racing 
293  meet. 
294         3. No cardroom license or renewal thereof shall be issued 
295  to an applicant holding a permit under chapter 550 to conduct 
296  pari-mutuel wagering meets of quarter horse racing unless the 
297  applicant has on file with the division a binding written 
298  agreement between the applicant and the Florida Quarter Horse 
299  Racing Association or the association representing a majority of 
300  the horse owners and trainers at the applicant’s eligible 
301  facility, governing the payment of purses on live quarter horse 
302  races conducted at the licensee’s pari-mutuel facility. The 
303  agreement governing purses may direct the payment of such purses 
304  from revenues generated by any wagering or gaming the applicant 
305  is authorized to conduct under Florida law. All purses shall be 
306  subject to the terms of chapter 550. 
307         Section 5. This act shall take effect July 1, 2010.