February 27, 2020
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HB 7145

A bill to be entitled
2An act relating to pari-mutuel permitholders; amending s.
3550.002, F.S.; revising the definition of the term "full
4schedule of live racing or games" in reference to quarter
5horse permitholders; amending s. 550.334, F.S.; revising
6provisions for permits to conduct quarter horse race
7meetings; removing provisions for application to the
8Division of Pari-mutuel Wagering for a permit to conduct
9quarter horse race meetings; removing provisions for
10granting a license to conduct quarter horse racing;
11revising a provision for governance and control of quarter
12horse racing; revising authorization to substitute races
13of other breeds of horses; providing for an exception to a
14prohibition against the transfer or conversion of a
15quarter horse permit; providing requirements for a quarter
16horse racing permitholder to be eligible to conduct
17intertrack wagering; providing requirements for a quarter
18horse racing permitholder to be eligible to operate a
19cardroom; removing certain provisions restricting
20intertrack wagering; creating s. 550.3345, F.S.; providing
21for the transfer of a quarter horse racing permit to a
22not-for-profit corporation; providing for membership and
23purpose of such corporation; providing for conversion of
24such permit to a limited thoroughbred permit; requiring
25net revenues derived by the not-for-profit corporation to
26be used for certain purposes relating to the thoroughbred
27horse racing industry; prohibiting live racing in certain
28locations during certain times; providing licensure
29requirements; providing for a change in location of the
30permit; prohibiting transfer of the converted permit;
31providing for application of state law to the permit and
32the corporation; providing an exception to certain
33provisions for failure to pay tax on handle; amending s.
34551.106, F.S.; revising the license fee and tax rate for
35slot machine licensees; providing for minimum tax revenue
36from operation of slot machines; amending s. 849.086,
37F.S.; revising requirements for initial issuance of a
38cardroom license; requiring the permitholder to be
39licensed to conduct a full schedule of live racing or
40games during the state fiscal year in which the initial
41cardroom license is issued; permitting cardroom operators
42to operate 24 hours per day; increasing certain wager and
43buy-in limits; permitting charity tournaments under
44certain conditions; providing effective dates, including a
45contingent effective date.
47Be It Enacted by the Legislature of the State of Florida:
49     Section 1.  Subsection (11) of section 550.002, Florida
50Statutes, is amended to read:
51     550.002  Definitions.--As used in this chapter, the term:
52     (11)  "Full schedule of live racing or games" means, for a
53greyhound or jai alai permitholder, the conduct of a combination
54of at least 100 live evening or matinee performances during the
55preceding year; for a permitholder who has a converted permit or
56filed an application on or before June 1, 1990, for a converted
57permit, the conduct of a combination of at least 100 live
58evening and matinee wagering performances during either of the 2
59preceding years; for a jai alai permitholder who does not
60operate slot machines in its pari-mutuel facility, who has
61conducted at least 100 live performances per year for at least
6210 years after December 31, 1992, and whose handle on live jai
63alai games conducted at its pari-mutuel facility has been less
64than $4 million per state fiscal year for at least 2 consecutive
65years after June 30, 1992, the conduct of a combination of at
66least 40 live evening or matinee performances during the
67preceding year; for a jai alai permitholder who operates slot
68machines in its pari-mutuel facility, the conduct of a
69combination of at least 150 performances during the preceding
70year; for a harness permitholder, the conduct of at least 100
71live regular wagering performances during the preceding year;
72for a quarter horse permitholder conducting live regular
73wagering performances at its facility, the conduct of at least
7420 live regular wagering performances in state fiscal year 2010-
752011, the conduct of at least 30 live regular wagering
76performances in state fiscal year 2011-2012 and in state fiscal
77year 2012-2013, and the conduct of at least 40 live regular
78wagering performances in state fiscal year 2013-2014 and every
79state fiscal year thereafter, or for a quarter horse
80permitholder conducting live regular wagering performances at
81its facility, an alternative schedule of at least 20 live
82regular wagering performances may be substituted if agreed to by
83the permitholder and either the Florida Quarter Horse Racing
84Association or the horsemen's association representing the
85majority of the horse owners and trainers at the facility and
86filed with the division with the permitholder's annual date
87application; for a quarter horse permitholder leasing another
88licensed racetrack, the conduct of 160 events at the leased
89facility during the preceding year; and for a thoroughbred
90permitholder, the conduct of at least 40 live regular wagering
91performances during the preceding year. For a permitholder which
92is restricted by statute to certain operating periods within the
93year when other members of its same class of permit are
94authorized to operate throughout the year, the specified number
95of live performances which constitute a full schedule of live
96racing or games shall be adjusted pro rata in accordance with
97the relationship between its authorized operating period and the
98full calendar year and the resulting specified number of live
99performances shall constitute the full schedule of live games
100for such permitholder and all other permitholders of the same
101class within 100 air miles of such permitholder. A live
102performance must consist of no fewer than eight races or games
103conducted live for each of a minimum of three performances each
104week at the permitholder's licensed facility under a single
105admission charge.
106     Section 2.  Section 550.334, Florida Statutes, is amended
107to read:
108     550.334  Quarter horse racing; substitutions.--
109     (1)  Subject to all the applicable provisions of this
110chapter, any person who possesses the qualifications prescribed
111in this chapter may apply to the division for a permit to
112conduct quarter horse race meetings and racing under this
113chapter. The applicant must demonstrate that the location or
114locations where the permit will be used are available for such
115use and that she or he has the financial ability to satisfy the
116reasonably anticipated operational expenses of the first racing
117year following final issuance of the permit. If the racing
118facility is already built, the application must contain a
119statement, with reasonable supporting evidence, that the permit
120will be used for quarter horse racing within 1 year after the
121date on which it is granted; if the facility is not already
122built, the application must contain a statement, with reasonable
123supporting evidence, that substantial construction will be
124started within 1 year after the issuance of the permit. After
125receipt of an application, the division shall convene to
126consider and act upon permits applied for. The division shall
127disapprove an application if it fails to meet the requirements
128of this chapter. Upon each application filed and approved, a
129permit shall be issued setting forth the name of the applicant
130and a statement showing qualifications of the applicant to
131conduct racing under this chapter. If a favorable referendum on
132a pari-mutuel facility has not been held previously within the
133county, then, before a quarter horse permit may be issued by the
134division, a referendum ratified by a majority of the electors in
135the county is required on the question of allowing quarter horse
136races within that county.
137     (2)  After a quarter horse racing permit has been granted
138by the division, the department shall grant to the lawful holder
139of such permit, subject to the conditions of this section, a
140license to conduct quarter horse racing under this chapter; and
141the division shall fix annually the time when, place where, and
142number of days upon which racing may be conducted by such
143quarter horse racing permitholder. After the first license has
144been issued to the holder of a permit for quarter horse racing,
145all subsequent annual applications for a license by a
146permitholder must be accompanied by proof, in such form as the
147division requires, that the permitholder still possesses all the
148qualifications prescribed by this chapter. The division may
149revoke any permit or license issued under this section upon the
150willful violation by the licensee of any provision of this
151chapter or any rule adopted by the division under this chapter.
152The division shall revoke any quarter horse permit under which
153no live racing has ever been conducted before July 7, 1990, for
154failure to conduct a horse meet pursuant to the license issued
155where a full schedule of horseracing has not been conducted for
156a period of 18 months commencing on October 1, 1990, unless the
157permitholder has commenced construction on a facility at which a
158full schedule of live racing could be conducted as approved by
159the division. "Commenced construction" means initiation of and
160continuous activities beyond site preparation associated with
161erecting or modifying a horseracing facility, including
162procurement of a building permit applying the use of approved
163construction documents, proof of an executed owner/contractor
164agreement or an irrevocable or binding forced account, and
165actual undertaking of foundation forming with steel installation
166and concrete placing. The 18-month period shall be extended by
167the division, to the extent that the applicant demonstrates to
168the satisfaction of the division that good faith commencement of
169the construction of the facility is being delayed by litigation
170or by governmental action or inaction with respect to
171regulations or permitting precluding commencement of the
172construction of the facility.
173     (1)(3)  The operator of any licensed racetrack is
174authorized to lease such track to any quarter horse racing
175permitholder for the conduct of quarter horse racing under this
177     (2)(4)  Section 550.054 is inapplicable to quarter horse
178racing as permitted under this section. All other provisions of
179this chapter, including s. 550.054, apply to, govern, and
180control such racing, and the same must be conducted in
181compliance therewith.
182     (3)(5)  Quarter horses participating in such races must be
183duly registered by the American Quarter Horse Association, and
184before each race such horses must be examined and declared in
185fit condition by a qualified person designated by the division.
186     (4)(6)  Any quarter horse racing days permitted under this
187chapter are in addition to any other racing permitted under the
188license issued the track where such quarter horse racing is
190     (5)(7)(a)  Any quarter horse racing permitholder operating
191under a valid permit issued by the division is authorized to
192substitute races of other breeds of horses, except
193thoroughbreds, which are, respectively, registered with the
194American Paint Horse Association, Appaloosa Horse Club, Arabian
195Horse Registry of America, Palomino Horse Breeders of America,
196or United States Trotting Association, or for no more than 50
197percent of the quarter horse races daily, and may substitute
198races of thoroughbreds registered with the Jockey Club for no
199more than 50 percent of the quarter horse races during its meet
200daily with the written consent of all greyhound, harness, and
201thoroughbred permitholders whose pari-mutuel facilities are
202located within 50 air miles of such quarter horse racing
203permitholder's pari-mutuel facility.
204     (b)  Any permittee operating within an area of 50 air miles
205of a licensed thoroughbred track may not substitute thoroughbred
206races under this section while a thoroughbred horse race meet is
207in progress within that 50 miles. Any permittee operating within
208an area of 125 air miles of a licensed thoroughbred track may
209not substitute live thoroughbred races under this section while
210a thoroughbred permittee who pays taxes under s. 550.09515(2)(a)
211is conducting a thoroughbred meet within that 125 miles. These
212mileage restrictions do not apply to any permittee that holds a
213nonwagering permit issued pursuant to s. 550.505.
214     (6)(8)  Except as provided in s. 550.3345, a quarter horse
215permit issued pursuant to this section is not eligible for
216transfer or conversion to another type of pari-mutuel operation.
217     (7)(9)  Any nonprofit corporation, including, but not
218limited to, an agricultural cooperative marketing association,
219organized and incorporated under the laws of this state may
220apply for a quarter horse racing permit and operate racing meets
221under such permit, provided all pari-mutuel taxes and fees
222applicable to such racing are paid by the corporation. However,
223insofar as its pari-mutuel operations are concerned, the
224corporation shall be considered to be a corporation for profit
225and is subject to taxation on all property used and profits
226earned in connection with its pari-mutuel operations.
227     (8)  To be eligible to conduct intertrack wagering, a
228quarter horse racing permitholder must have conducted a full
229schedule of live racing in the preceding year and, to operate a
230cardroom, a quarter horse racing permitholder must be licensed
231to conduct a full schedule of live racing in the initial year of
232cardroom licensure.
233     (10)  Intertrack wagering shall not be authorized for any
234quarter horse permitholder without the written consent of all
235greyhound, harness, and thoroughbred permitholders whose pari-
236mutuel facilities are located within 50 air miles of such
237quarter horse permitholder's pari-mutuel facility.
238     Section 3.  Section 550.3345, Florida Statutes, is created
239to read:
240     550.3345  Conversion of quarter horse permit to a limited
241thoroughbred permit.--
242     (1)  In recognition of the important and long-standing
243economic contribution of the thoroughbred horse breeding
244industry to this state and the state's vested interest in
245promoting the continued viability of this agricultural activity,
246the state intends to provide a limited opportunity for the
247conduct of live thoroughbred horse racing with the net revenues
248from such racing dedicated to the enhancement of thoroughbred
249purses and breeders', stallion, and special racing awards under
250this chapter; the general promotion of the thoroughbred horse
251breeding industry; and the care in this state of thoroughbred
252horses retired from racing.
253     (2)  Notwithstanding any other provision of law, the holder
254of a quarter horse racing permit issued under s. 550.334 may,
255within 1 year after the effective date of this section, apply to
256the division for a transfer of the quarter horse racing permit
257to a not-for-profit corporation formed under state law to serve
258the purposes of the state as provided in subsection (1). The
259board of directors of the not-for-profit corporation must be
260comprised of 11 members, 4 of whom shall be designated by the
261applicant, 4 of whom shall be designated by the Florida
262Thoroughbred Breeders' Association, and 3 of whom shall be
263designated by the other 8 directors, with at least 1 of these 3
264members being an authorized representative of another
265thoroughbred permitholder in this state. The not-for-profit
266corporation shall submit an application to the division for
267review and approval of the transfer in accordance with s.
268550.054. Upon approval of the transfer by the division, and
269notwithstanding any other provision of law to the contrary, the
270not-for-profit corporation may, within 1 year after its receipt
271of the permit, request that the division convert the quarter
272horse racing permit to a permit authorizing the holder to
273conduct pari-mutuel wagering meets of thoroughbred racing.
274Neither the transfer of the quarter horse racing permit nor its
275conversion to thoroughbred racing shall be subject to the
276mileage limitation set forth in s. 550.054(2) or to a
277ratification election under s. 550.0651. Upon receipt of the
278request for such conversion, the division shall timely issue a
279converted permit. The converted permit and the not-for-profit
280corporation shall be subject to the following requirements:
281     (a)  All net revenues derived by the not-for-profit
282corporation under the thoroughbred horse racing permit, after
283the funding of operating expenses and capital improvements,
284shall be dedicated to the enhancement of thoroughbred purses and
285breeders', stallion, and special racing awards under this
286chapter; the general promotion of the thoroughbred horse
287breeding industry; and the care in this state of thoroughbred
288horses retired from racing.
289     (b)  From December 1 through April 30, no live thoroughbred
290racing may be conducted under the permit on any day during which
291another thoroughbred permitholder is conducting live
292thoroughbred racing within 125 air miles of the not-for-profit
293corporation's pari-mutuel facility unless the other thoroughbred
294permitholder gives its written consent.
295     (c)  After the conversion of the quarter horse racing
296permit and the issuance of its initial license to conduct pari-
297mutuel wagering meets of thoroughbred racing, the not-for-profit
298corporation shall annually apply to the division for a license
299pursuant to s. 550.5251(2)-(5).
300     (d)  Racing under the permit may take place only at the
301location for which the original quarter horse racing permit was
302issued, which may be leased by the not-for-profit corporation
303for that purpose; however, the not-for-profit corporation may,
304without the conduct of any ratification election pursuant to ss.
305550.054(13) or 550.0651, move the location of the permit to
306another location in the same county provided that such
307relocation is approved under the zoning and land use regulations
308of the applicable county or municipality.
309     (e)  No permit converted under this section is eligible for
310transfer to another person or entity.
311     (3)  Unless otherwise provided in this section, after
312conversion, the permit and the not-for-profit corporation shall
313be treated under the laws of this state as a thoroughbred permit
314and as a thoroughbred permitholder, respectively, with the
315exception of s. 550.09515(3).
316     Section 4.  Paragraph (a) of subsection (1) and paragraph
317(a) of subsection (2) of section 551.106, Florida Statutes, are
318amended to read:
319     551.106  License fee; tax rate; penalties.--
320     (1)  LICENSE FEE.--
321     (a)  Upon submission of the initial application for a slot
322machine license and annually thereafter, on the anniversary date
323of the issuance of the initial license, the licensee must pay to
324the division a nonrefundable license fee of $2 $3 million for
325the succeeding 12 months of licensure. The license fee shall be
326deposited into the Pari-mutuel Wagering Trust Fund of the
327Department of Business and Professional Regulation to be used by
328the division and the Department of Law Enforcement for
329investigations, regulation of slot machine gaming, and
330enforcement of slot machine gaming provisions under this
331chapter. These payments shall be accounted for separately from
332taxes or fees paid pursuant to the provisions of chapter 550.
334     (a)  The tax rate on slot machine revenues at each facility
335shall be the product of the number 2 multiplied by the
336percentage rate specified in the gaming compact between the
337Seminole Tribe of Florida and( the State of Florida for the
338purpose of determining the annual gaming revenue share that the
339Seminole Tribe of Florida is obligated to pay to the state
340pursuant to such gaming compact that has been ratified by the
341Legislature and has been approved by either the Secretary of the
342United States Department of the Interior or by operation of
343federal law. If, during any state fiscal year, the aggregate
344amount of tax paid to the state by all slot machine licensees in
345Broward and Miami-Dade Counties is less than $140 million, each
346slot machine licensee shall pay to the state within 45 days
347after the end of the state fiscal year a surcharge equal to its
348pro rata share of an amount equal to the difference between $140
349million and the amount of tax paid during the fiscal year. Each
350licensee's pro rata share shall be an amount determined by
351dividing the number 1 by the number of facilities licensed to
352operate slot machines during the applicable fiscal year,
353regardless of whether the facility is operating such machines.
354The tax rate on slot machine revenues at each facility shall be
35550 percent.
356     Section 5.  Paragraph (a) of subsection (5), paragraph (b)
357of subsection (7), and subsection (8) of section 849.086,
358Florida Statutes, are amended to read:
359     849.086  Cardrooms authorized.--
360     (5)  LICENSE REQUIRED; APPLICATION; FEES.--No person may
361operate a cardroom in this state unless such person holds a
362valid cardroom license issued pursuant to this section.
363     (a)  Only those persons holding a valid cardroom license
364issued by the division may operate a cardroom. A cardroom
365license may only be issued to a licensed pari-mutuel
366permitholder and an authorized cardroom may only be operated at
367the same facility at which the permitholder is authorized under
368its valid pari-mutuel wagering permit to conduct pari-mutuel
369wagering activities. An initial cardroom license shall only be
370issued to a pari-mutuel permitholder if the permitholder is
371licensed to conduct a full schedule of live racing or games as
372defined in s. 550.002(11) during the state fiscal year in which
373the initial cardroom license is issued.
375     (b)  Any horserace, greyhound race, or jai alai
376permitholder licensed under this section may operate a cardroom
377at the pari-mutuel facility for 24 hours per day on any day for
378a cumulative amount of 12 hours if the permitholder meets the
379requirements under paragraph (5)(b).
381     (a)  No wagering may be conducted using money or other
382negotiable currency. Games may only be played utilizing a
383wagering system whereby all players' money is first converted by
384the house to tokens or chips which shall be used for wagering
385only at that specific cardroom.
386     (b)  The cardroom operator may limit the amount wagered in
387any game or series of games, but the maximum bet may not exceed
388$50 $5 in value. There may not be more than three raises in any
389round of betting. The fee charged by the cardroom for
390participation in the game shall not be included in the
391calculation of the limitation on the bet amount provided in this
392paragraph. However, a cardroom operator may conduct games of
393Texas Hold-em without a betting limit if the required player
394buy-in is no more than $1,000 $100.
395     (c)  A tournament shall consist of a series of games. The
396entry fee for a tournament, including any re-buys, may not
397exceed the maximum amount that could be wagered by a participant
398in 10 like-kind, nontournament games under paragraph (b).
399Tournaments may be played only with tournament chips that are
400provided to all participants in exchange for an entry fee and
401any subsequent re-buys. All players must receive an equal number
402of tournament chips for their entry fee. Tournament chips have
403no cash value and represent tournament points only. There is no
404limitation on the number of tournament chips that may be used
405for a bet except as otherwise determined by the cardroom
406operator. Tournament chips may never be redeemed for cash or for
407any other thing of value. The distribution of prizes and cash
408awards must be determined by the cardroom operator before entry
409fees are accepted. For purposes of tournament play only, the
410term "gross receipts" means the total amount received by the
411cardroom operator for all entry fees, player re-buys, and fees
412for participating in the tournament less the total amount paid
413to the winners or others as prizes.
414     (d)  In each of its facilities, a cardroom operator may
415hold up to two celebrity or charity poker tournaments per year
416that are not subject to the limitations and restrictions imposed
417by this section, provided that 100 percent of the gross
418receipts, as defined in paragraph (c), from each poker
419tournament are donated to a charitable organization organized
420pursuant to s. 501(c)(3) of the Internal Revenue Code. Such
421celebrity or charity poker tournament may not be played over
422more than 8 calendar days. The payments made to charitable
423organizations pursuant to this paragraph shall not be calculated
424as gross receipts for the purpose of calculating tax payments
425due to the state under paragraph (13)(a).
426     Section 6.  This act shall take effect July 1, 2009, except
427that the amendments to section 551.106, Florida Statutes, made
428by this act shall take effect only upon the date that the
429Legislature ratifies an Indian gaming compact between the State
430and the Seminole Tribe of Florida and is approved or deemed
431approved by the Secretary of the United States Department of the
432Interior as evidenced by publication of the executed compact in
433the Federal Register.

CODING: Words stricken are deletions; words underlined are additions.
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