September 18, 2018
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       Florida Senate - 2009          (Corrected Copy)    CS for SB 788
       
       
       
       By the Committee on Regulated Industries; and Senators Jones and
       King
       
       
       
       580-03401A-09                                          2009788c1
    1                        A bill to be entitled                      
    2         An act relating to a gaming compact between the State
    3         of Florida and the Seminole Tribe of Florida; defining
    4         terms; providing that the previous compact between the
    5         Tribe and the Governor is not approved or ratified by
    6         the Legislature; directing the Governor to negotiate a
    7         gaming compact with the Tribe; specifying requirements
    8         and minimum standards for the compact; specifying the
    9         date on which the authority of the Governor to
   10         negotiate a compact expires; specifying games that may
   11         be authorized for play pursuant to the compact;
   12         specifying revenue sharing between the state and the
   13         Tribe; requiring the release of certain gaming
   14         revenues to the state; providing for the reduction of
   15         the Tribe’s net win on which revenue sharing is based
   16         if additional Class III games are authorized under
   17         certain circumstances; providing for completion of the
   18         term of the compact in the event that the voters
   19         repeal a constitutional provision authorizing slot
   20         machines at certain pari-mutuel facilities; providing
   21         that the compact becomes void as the result of a
   22         judicial decision or decision of the Secretary of the
   23         United States Department of the Interior invalidating
   24         certain provisions of the compact; specifying limits
   25         on the term of a compact; limiting the number of
   26         facilities at which gaming may occur; specifying
   27         requirements for a central computer system on gaming
   28         facility premises; requiring that the system provide
   29         the state with access to certain data; specifying the
   30         authority of the state to oversee gaming activities by
   31         the Tribe; requiring medical professionals employed at
   32         the Tribe’s gaming facilities to have certain minimum
   33         qualifications; requiring access for municipal or
   34         county emergency medical services; specifying minimum
   35         construction standards for the Tribe’s gaming
   36         facilities; specifying minimum environmental
   37         standards; requiring the Tribe to establish procedures
   38         to dispose of tort claims; requiring the Tribe to
   39         maintain a minimum amount of general liability
   40         insurance for tort claims; prohibiting the Tribe or
   41         its insurer from invoking sovereign immunity under
   42         certain circumstances; requiring the Tribe to waive
   43         its sovereign immunity for disputes relating to the
   44         compact; requiring presuit arbitration of disputes
   45         relating to the compact; requiring the Tribe to
   46         maintain nondiscriminatory employment practices;
   47         requiring the Tribe to use its best efforts to spend
   48         its revenue in this state; providing legislative
   49         intent to review the compact; directing the Governor
   50         to negotiate agreements with Indian tribes in this
   51         state, subject to approval by the Legislature,
   52         relating to the application state taxes on Indian
   53         lands; providing a contingent effective date.
   54  
   55  Be It Enacted by the Legislature of the State of Florida:
   56  
   57         Section 1. As used in this act, the term:
   58         (1)“Agreement” means the document executed by the Seminole
   59  Tribe of Florida and the Governor on November 14, 2007,
   60  published in the Federal Register on January 7, 2008,
   61  subsequently invalidated by the Florida Supreme Court in the
   62  case of Florida House of Representatives, et al., v. Crist, No.
   63  SC07-2154.
   64         (2)“Class II gaming” means the forms of gaming defined in
   65  25 U.S.C. s. 2703(7) and by the regulations of the National
   66  Indian Gaming Commission in effect on January 1, 2009.
   67         (3)“Class III gaming” means the forms of Class III gaming
   68  defined in 25 U.S.C. s. 2703(8) and by the regulations of the
   69  National Indian Gaming Commission in effect on January 1, 2009.
   70         (4)“Compact” means the compact between the Seminole Tribe
   71  of Florida and the State of Florida executed by the Tribe and
   72  the state pursuant to the provisions of the Indian Gaming
   73  Regulatory Act of 1988 and this act, and approved or deemed
   74  approved by the United States Department of the Interior
   75  pursuant to 25 U.S.C. s. 2710(d)(8).
   76         (5)“Net win” means gross gaming revenue for Class III
   77  games, as such games are defined by the federal Indian Gaming
   78  Regulatory Act of 1988, which is the difference between gaming
   79  wins and losses, before deducting costs and expenses.
   80         (6)“Revenue sharing cycle” means a 12-month period, with
   81  the first such cycle beginning on the day the compact executed
   82  pursuant to this act is approved or deemed approved by the
   83  Secretary of the United States Department of the Interior, as
   84  evidenced by the date of publication in the Federal Register.
   85         (7)“Tribe” means the Seminole Tribe of Florida.
   86         Section 2. The agreement executed by the Governor and the
   87  Tribe is not ratified or approved by the Legislature.
   88         Section 3. (1)The Governor is hereby authorized and
   89  directed to execute a compact on behalf of the State of Florida
   90  with the Tribe pursuant to the federal Indian Gaming Regulatory
   91  Act of 1988, 18 U.S.C. ss. 1166-1168, and 25 U.S.C. s. 2701 et
   92  seq., and this act for the purpose of authorizing class III
   93  gaming on Seminole lands within this state.
   94         (2)The Legislature recognizes the efforts of the Governor
   95  and the Tribe in the negotiation and formulation of the
   96  agreement. The Legislature intends that the compact entered into
   97  pursuant to this act conform to the terms and standards in the
   98  agreement to the extent that such terms and standards do not
   99  conflict with the minimum terms and standards provided in this
  100  act.
  101         (3)A compact that meets all of the minimum terms and
  102  standards specified in this act does not require subsequent
  103  approval or ratification by the Legislature. The compact shall
  104  specify a procedure for amending the compact. Any amendment to
  105  the compact which is consistent with the minimum terms and
  106  standards provided in this act does not require subsequent
  107  approval or ratification by the Legislature.
  108         (4)If any provision of the compact relating to covered
  109  games, payments, suspension or reduction in payments, or
  110  exclusivity is held by a court of competent jurisdiction or by
  111  the Secretary of the United States Department of the Interior to
  112  be invalid, the compact is void.
  113         (5)The Governor shall ensure that all revenue sharing
  114  received pursuant to the compact is deposited into the Education
  115  Enhancement Trust Fund.
  116         (6)The Governor shall provide a copy of the compact to the
  117  President of the Senate and the Speaker of the House of
  118  Representatives as soon as it is executed by the state and the
  119  Tribe and before or simultaneous with its submission to the
  120  Department of the Interior.
  121         (7)The Governor shall preserve all documents, if any,
  122  which relate to the intent or interpretation of the compact, and
  123  maintain such documents for at least the term of the compact.
  124         (8)Except for the authority granted to the Governor in
  125  section 7 of this act, the authority granted to the Governor by
  126  this act expires at 11:59 p.m. on December 31, 2009.
  127         Section 4. The Division of Pari-mutuel Wagering of the
  128  Department of Business and Professional Regulation is designated
  129  as the state agency having the authority to carry out the
  130  state’s oversight responsibilities under a compact authorized by
  131  this act.
  132         Section 5. (1)Notwithstanding any other provision of law
  133  to the contrary, the Governor is authorized to negotiate a
  134  compact with the Tribe to permit the Tribe to offer for play any
  135  of the following games that are permitted in this state under
  136  limited circumstances at licensed pari-mutuel facilities:
  137         (a)Slot machines, as defined in s. 551.102(8), Florida
  138  Statutes.
  139         (b)1.Charity celebrity poker tournaments, if the compact
  140  specifies the minimum percentage of the net proceeds from each
  141  poker tournament which must be donated to a charitable
  142  organization organized pursuant to s. 501(c)(3) of the Internal
  143  Revenue Code, limits the number of tournaments that may be held
  144  each year, limits the maximum number of days that tournaments
  145  may be played, and limits the frequency of the tournaments.
  146         2.The compact shall permit the Tribe to conduct games of
  147  poker without betting limits if such games are authorized in
  148  this state to any person for any purpose.
  149         (c)Any devices or games that are authorized under state
  150  law to the Florida State Lottery, except that the Tribe may not
  151  offer such games through the Internet unless others in the state
  152  are permitted to do so.
  153         (d)Any new Class II game authorized by Florida law for any
  154  person for any purpose.
  155  (2)Notwithstanding any other provision of law to the contrary,
  156  a compact negotiated pursuant to this section shall permit the
  157  Tribe to offer for play banked card games, including baccarat,
  158  chemin de fer, and blackjack or 21, if blackjack or 21 is
  159  authorized for play at licensed pari-mutuel facilities located
  160  in Miami-Dade County or Broward County and chapter 551, Florida
  161  Statutes.
  162         (3)Notwithstanding any other provision of law to the
  163  contrary, a compact negotiated pursuant to this act shall permit
  164  the tribe to offer for play all of the following Class III
  165  games:
  166         (a)Roulette or roulette style games; and
  167         (b)Craps or craps style games.
  168         (4)(a)In consideration for authority to play the specified
  169  Class III games described in this section, the compact shall
  170  provide for revenue sharing through periodic payments to the
  171  state during the term of the compact. If net win in any cycle is
  172  less than or equal to $2 billion, revenue sharing for that cycle
  173  shall be $400 million. If net win in any cycle is more than $2
  174  billion and less than or equal to $4 billion, revenue sharing
  175  for that cycle shall be $400 million plus 10 percent of net win
  176  that is more than $2 billion and less than or equal to $4
  177  billion. If net win in any cycle is more than $4 billion,
  178  revenue sharing for that cycle shall be $600 million plus 25
  179  percent of net win that is over $4 billion. However, revenue
  180  sharing may be:
  181         1Reduced or suspended if the net win in any cycle fails to
  182  reach $1.37 billion and shall resume when the net win for a
  183  cycle or any subsequent period when revenue sharing is reduced
  184  or suspended reaches $1.37 billion.
  185         2.Reduced pursuant to subsection (8).
  186         (b)The compact shall specify a process for determining the
  187  timing and amount of any reduction of revenue sharing payments.
  188  The process shall provide the state with at least 30 days to
  189  review the Tribe’s projection or determination that the net win
  190  for any cycle will or has failed to reach $1.37 billion.
  191         (5)Revenue sharing required by this section shall be in
  192  addition to assessments by the state, consistent with 25 U.S.C.
  193  s. 2710(d)(3)(C)(iii), in such amounts as are necessary to
  194  defray the costs of regulating activity conducted pursuant to
  195  the compact; payments, consistent with 25 U.S.C. s. 2710
  196  (b)(2)(B)(v), to help fund operations of local government
  197  agencies; any other provision of the compact relating to
  198  financial obligations of the Tribe; taxation by the Indian
  199  tribe, consistent with 25 U.S.C. 2710(d)(3)(C)(iv), of certain
  200  activities in amounts comparable to amounts assessed by the
  201  State for comparable activities; and any separate legal document
  202  obligating the Tribe to make payments or to share revenues.
  203         (6)In recognition of the fact that the Tribe has been
  204  conducting gaming consistent with the provisions of the
  205  agreement, all revenues shared or anticipated to be shared
  206  pursuant to that agreement before the date the compact is
  207  approved or deemed approved by the United States Department of
  208  the Interior shall be ratified and released to the State of
  209  Florida without further obligation or encumbrance. Acceptance of
  210  such funds by the state does not validate the agreement or the
  211  operation of the Class III gaming by the Tribe during the period
  212  a valid compact was not in effect.
  213         (7)In consideration for any additional Class III games
  214  authorized for the Tribe under subsection (3), the compact may
  215  not provide for the elimination or reduction of revenue sharing
  216  in the event that blackjack is authorized for play at licensed
  217  pari-mutuel facilities located in Miami-Dade County or Broward
  218  County.
  219         (8)The compact must provide that if one or more additional
  220  Class III games not specifically provided for in this act are
  221  authorized in this state, such event shall not result in the
  222  elimination of revenue-sharing payments under the compact, but
  223  shall provide that the Tribe’s net win on which its revenue
  224  sharing is based be reduced by an amount reasonably calculated
  225  by the parties to equal the net win from any such additional
  226  Class III gaming activities that are authorized after the
  227  effective date of the compact. However, the compact may not
  228  permit a reduction in revenue sharing as the result of an
  229  authorization for additional Class III games in Gadsden,
  230  Liberty, and Franklin Counties or counties west of those
  231  counties.
  232         (9)The compact may not provide for the elimination or
  233  reduction of revenue sharing based on the authorization of
  234  historic racing or additional Class II gaming in this state,
  235  including any Class II electronic gaming machines that may be
  236  authorized for play at licensed pari-mutuel facilities anywhere
  237  in the state.
  238         (10)The provisions of the compact, including the revenue
  239  sharing provisions, may not be reduced or eliminated by the
  240  existence of any gaming activities being conducted in Florida at
  241  the time this compact is ratified which are illegal or are of
  242  unsettled legal status as long as the state and its local
  243  governmental entities maintain at least their current reasonable
  244  level of enforcement actions against such illegal gaming
  245  activities.
  246         (11)If the Florida Constitution is amended to repeal the
  247  slot machine amendment in s. 23, Article X of the State
  248  Constitution, the Legislature authorizes the Seminoles to
  249  continue to offer the play of slot machines under the terms of
  250  the compact authorized pursuant to this section during the
  251  remainder of the term of the compact.
  252         (12)The compact shall provide that the compact is void if
  253  any provision of the compact relating to covered games,
  254  payments, or reduction or suspension of payments, or exclusivity
  255  is held by a court of competent jurisdiction or determined by
  256  the Secretary of the United States Department of the Interior to
  257  be invalid.
  258         Section 6. The compact negotiated pursuant to this act must
  259  meet the following additional minimum terms and standards:
  260         (1)The compact shall provide for a term of at least 10
  261  years and no more than 25 years.
  262         (2)The compact shall authorize the Tribe to offer the play
  263  of specified Class III games at no more than seven existing
  264  Seminole Tribe of Florida gaming facilities. The compact shall
  265  identify the specific lands, locations, and existing gaming
  266  facilities on which the Tribe is authorized to offer the play of
  267  such games under the compact. The compact may permit any
  268  identified facility to be expanded or replaced by another
  269  facility on the same reservation with advance notice to the
  270  State of no less than 60 calendar days, but the number of
  271  existing facilities on each reservation shall remain the same.
  272         (3)The compact shall provide that all gaming machines on
  273  the premises of the authorized facilities will be connected to a
  274  central computerized reporting and auditing system on the gaming
  275  facility premises. The system shall:
  276         (a)Collect on a continual basis the unaltered activity of
  277  each gaming machine in use at the gaming facility.
  278         (b)Provide access to the state by a dedicated
  279  telecommunications connection, on a “read-only” basis, upon
  280  entry of appropriate security codes and permit access to and
  281  downloads of the wager and payout data of each machine,
  282  electronically captured by the central computer. However, the
  283  compact may not authorize the state to alter or affect the
  284  operation of any gaming machine or other device on the premises
  285  of the authorized gaming facility or the data provided to the
  286  central computer.
  287         (c)Be constructed and installed at the Tribe’s expense to
  288  provide electronic access to the state for the machine wager and
  289  payout data collected by the central computer.
  290         (d)Be designed in conjunction with the state and the
  291  Tribe’s technical staff so as to preserve the integrity of the
  292  system and the data contained therein, to minimize any
  293  possibility of unauthorized access to the system or tampering
  294  with the data, and to minimize any access by the state to
  295  information other than machine wager and payout data residing in
  296  the central reporting and auditing system.
  297         (4)The compact shall designate the Division of Pari-mutuel
  298  Wagering of the Department of Business and Professional
  299  Regulation as the state agency authorized to carry out the
  300  state’s oversight responsibilities under the compact.
  301         (5)The compact shall require the state to monitor the
  302  Tribe’s compliance with the provisions of the compact, and:
  303         (a)Permit the state to have access, during regular hours
  304  of operation, to any public areas of each gaming facility that
  305  is conducting gaming activities under the authority of the
  306  compact without prior notice, or with concurrent notice, and to
  307  any nonpublic area of the facilities without prior notice, or
  308  with concurrent notice;
  309         (b)Permit the state to conduct oversight testing,
  310  including random inspections, of any games or devices authorized
  311  under the compact;
  312         (c)Provide for annual audits by the state or an
  313  independent third party to review slot machine and other Class
  314  III gaming compliance under the terms of the compact;
  315         (d)Require an annual independent financial audit to verify
  316  compliance with any obligations of the Seminole Tribe of Florida
  317  under the compact, including financial and auditing provisions,
  318  which audit shall be paid by the Tribe; and
  319         (e)Permit the state to inspect, review, and receive
  320  requested copies of any records of the Tribe which it deems
  321  necessary to verify compliance with any gaming or financial
  322  obligations of the Seminole Tribe of Florida under the compact.
  323         (6)The compact may not:
  324         (a)Limit the number of times or opportunities that the
  325  state may inspect any covered games or gaming devices in
  326  operation at facilities on a random basis to confirm that the
  327  operation and play of the games or devices conform to
  328  manufacturer’s technical standards or to the standards specified
  329  in the compact; or
  330         (b)Limit the number of times the state may review internal
  331  controls and violations by authorized facilities.
  332         (7)The compact shall require the Tribe to:
  333         (a)Employ, permit, or authorize only medical professionals
  334  at its gaming facilities who are licensed by this state; and
  335         (b)Allow unimpeded access to the gaming facilities by
  336  municipal or county emergency medical services.
  337         (8)The compact shall require the Tribe to ensure that the
  338  construction and maintenance of gaming facilities will comply
  339  with standards that are at least as stringent as the Florida
  340  Building Code.
  341         (9)The compact shall provide that, at a minimum, the
  342  environmental requirements of any federal permit must ensure
  343  that the standards established for the state’s environmental
  344  resource permitting program as provided for in s. 373.414,
  345  Florida Statutes, are met.
  346         (10)The compact shall require the Tribe to establish
  347  written, reasonable procedures for the disposition of tort
  348  claims arising from personal injury or property damage alleged
  349  to have been suffered by patrons and invitees of its authorized
  350  gaming facilities and to enact such tribal law as is necessary
  351  to implement these procedures. The procedures shall include all
  352  such tort claims, including claims that exceed the liability
  353  insurance limits specified in subsection (11). The procedures
  354  shall include all time limits that are applicable to the
  355  disposition of the tort claim and a provision that, upon
  356  request, the patron or invitee, or the patron’s or invitee’s
  357  designated representative, shall be provided with a copy of the
  358  procedures as well as the name, address, and telephone number of
  359  the operator of the facility and the mailing address and
  360  telephone number of the clerk of the Tribe’s tribal court. The
  361  Tribe shall not be deemed to have waived its sovereign immunity
  362  from suit with respect to such claims by establishing such
  363  procedures but must agree not to assert its sovereign immunity
  364  with respect to such claims as provided in subsection (11).
  365         (11)The compact shall provide that, during the term of the
  366  compact, the Tribe shall maintain a policy of commercial general
  367  liability insurance which has a combined single limit for
  368  personal injury and property damage of not less than $2 million
  369  per occurrence and in the aggregate. The compact shall require
  370  the amount of the coverage to be adjusted annually based on
  371  increases in the Consumer Price Index. The insurance policy
  372  shall:
  373         (a)Prohibit the insurer or the Tribe from invoking tribal
  374  sovereign immunity up to the limits of the policy with respect
  375  to any claim covered under the policy and disposed of in
  376  accordance with the Tribe’s tort claim procedures.
  377         (b)Include covered claims made by a patron or invitee for
  378  personal injury or property damage.
  379         (c)Permit the insurer or the Tribe to assert any statutory
  380  or common law defense other than sovereign immunity.
  381         (d)Provide that any award or judgment rendered in favor of
  382  a patron or invitee shall be satisfied solely from insurance
  383  proceeds.
  384         (12)The compact shall provide a reasonable process for the
  385  expedited resolution of disputes between the state and the Tribe
  386  which arise under the compact. The compact shall:
  387         (a)Provide that the Tribe waives its sovereign immunity as
  388  to any disputes between the state and the Tribe arising out of
  389  the compact.
  390         (b)Require presuit nonbinding arbitration before a lawsuit
  391  can be filed concerning the dispute.
  392         (c)Provide that either party may demand presuit nonbinding
  393  arbitration to resolve any dispute between the parties arising
  394  under the compact.
  395         1.The party demanding the presuit nonbinding arbitration
  396  shall immediately ask the American Arbitration Association to
  397  furnish a list of 11 arbitrators, each of whom shall have at
  398  least 5 years of commercial arbitration experience and no
  399  financial interest in or prior relationship with any of the
  400  parties or their affiliated or related entities or principals.
  401         2.The state and the Tribe shall each select a single
  402  arbitrator from the list provided by the American Arbitration
  403  Association within 10 days after receipt, and the individuals so
  404  selected shall choose one additional arbitrator from the list
  405  within the next 10 days. The three arbitrators selected shall
  406  constitute the panel that shall arbitrate the dispute between
  407  the parties pursuant to the American Arbitration Association
  408  Commercial Arbitration Rules and chapter 682, Florida Statutes.
  409         3.At the conclusion of the proceedings, which shall be no
  410  later than 90 days after the demand for arbitration, the
  411  arbitration panel shall present to the parties a proposed
  412  agreement that the majority of the panel believes equitably
  413  balances the rights, interests, obligations, and reasonable
  414  expectations of the parties.
  415         4.The parties shall, within 10 days after the arbitration
  416  panel’s issuance of the proposed agreement, enter into such
  417  agreement or notify the opposing party of its intent to reject
  418  the agreement and proceed with a lawsuit to resolve the dispute.
  419         5.Each party shall pay its respective costs of arbitration
  420  and shall pay one-half of the costs of the arbitration panel.
  421         (13)The compact shall provide for the exercise of fair
  422  employment practices by the Tribe. The compact shall require the
  423  Tribe to maintain employment standards that are comparable to
  424  the standards provided in federal laws and state laws which
  425  forbid employers from discriminating in connection with
  426  employment of persons working at the gaming facilities
  427  identified under the compact on the basis of race, color,
  428  religion, natural origin, gender, age, disability or handicap,
  429  or marital status. The Tribe may give preference in employment,
  430  promotion, seniority, layoffs, or retention to members of the
  431  Tribe and other federally recognized Tribes. The Tribe shall
  432  provide a process for employee disputes which permits the
  433  employee to be represented by an attorney or other legally
  434  authorized representative. The process shall permit the employee
  435  to use language interpreters, including interpreters for the
  436  deaf or hard of hearing.
  437         (14)The compact shall provide that the Tribe will use its
  438  best efforts to spend its revenue in this state to acquire goods
  439  and services from Florida-based vendors, professionals, and
  440  material and service providers.
  441         (15)It is the intent of the Legislature to review a
  442  compact entered into under the provisions of this section every
  443  5 years. It is the intent of the Legislature to consider the
  444  authorization of additional Class III games for operation by the
  445  Tribe based upon successful implementation of the compact and
  446  the history of compliance with the compact.
  447         Section 7. The Governor of this state is hereby authorized
  448  and directed to execute an agreement on behalf of the State of
  449  Florida with the Indian tribes in this state, acting on a
  450  government-to-government basis, to develop and implement a fair
  451  and workable arrangement to apply state taxes on persons and
  452  transactions on Indian lands. Such agreements shall address the
  453  imposition of specific taxes and exemptions from those taxes. An
  454  agreement executed by the Governor pursuant to the authority
  455  granted in this section shall not take effect unless approved or
  456  ratified by the Legislature.
  457         Section 8. This act shall take effect on the same date that
  458  section 1 of SB 836, or similar legislation, takes effect if
  459  such legislation is adopted during the 2009 legislative session,
  460  or an extension thereof, and becomes law.

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