Bill Text: FL S0986 | 2012 | Regular Session | Introduced
Bill Title: Slot Machines and Slot Machine Components
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2012-02-07 - Unfavorable by Regulated Industries, laid on Table; YEAS 3 NAYS 7 -SJ 349 [S0986 Detail]
Download: Florida-2012-S0986-Introduced.html
Florida Senate - 2012 SB 986 By Senator Altman 24-00339A-12 2012986__ 1 A bill to be entitled 2 An act relating to slot machines and slot machine 3 components; amending s. 551.103, F.S.; requiring the 4 Division of Pari-mutuel Wagering within the Department 5 of Business and Professional Regulation to adopt rules 6 regulating slot machines and providing specifications 7 for the internal components of slot machines; 8 requiring that the division adopt specifications and 9 procedures to ensure random probabilities of winning 10 plays and provide for the operation of random-number 11 generators; amending s. 551.104, F.S.; deleting 12 obsolete provisions; clarifying duties of a slot 13 machine licensee to conform to changes made by the 14 act; amending s. 551.121, F.S.; prohibiting a slot 15 machine’s random-number generator from serving more 16 than one station or terminal where an individual 17 player places his or her wagers; providing for 18 progressive jackpot payouts except in conjunction with 19 slot machines between other licensed facilities; 20 providing an effective date. 21 22 Be It Enacted by the Legislature of the State of Florida: 23 24 Section 1. Subsection (1) of section 551.103, Florida 25 Statutes, is amended to read: 26 551.103 Powers and duties of the division and law 27 enforcement.— 28 (1) The division shall adopt, pursuant tothe provisions of29 ss. 120.536(1) and 120.54, all rules necessary toimplement,30 administer,and regulate slot machines and slot machine gaming 31 as authorized in this chapter. TheSuchrules must include: 32 (a) Procedures for applying for a slot machine license and 33 renewal of a slot machine license. 34 (b) Technical requirements and the qualifications contained 35 in this chapter that are necessary to receive a slot machine 36 license or slot machine occupational license. 37 (c) Procedures to scientifically test and technically 38 evaluate slot machines, including all components, hardware, and 39 software for slot machines, for compliance with this chapter. 40 The division may contract with an independent testing laboratory 41 to conduct any necessary testing under this section. The 42 independent testing laboratory must have a national reputation 43 and bewhich isdemonstrably competent and qualified to 44 scientifically test and evaluate slot machines for compliance 45 with this chapter and to otherwise perform the functions 46 assigned to it in this chapter. An independent testing 47 laboratory mayshallnot be owned or controlled by a licensee. 48 The use of an independent testing laboratory for any purpose 49 related to the conduct of slot machine gaming by a licensee 50 under this chapter shall be made from a list of one or more 51 laboratories approved by the division. 52 (d) Procedures relating to slot machine revenues, including 53 verifying and accounting for such revenues, auditing, and 54 collecting taxes and fees consistent with this chapter. 55 (e) Procedures for regulating, managing, and auditing the 56 operation, financial data, and program information relating to 57 slot machine gaming whichthatallow the division and the 58 Department of Law Enforcement to audit the operation, financial 59 data, and program information of a slot machine licensee, as 60 required by the division or the Department of Law Enforcement, 61 and provide the division and the Department of Law Enforcement 62 with the ability to monitor, at any time on a real-time basis, 63 wagering patterns, payouts, tax collection, and compliance with 64 any rules adopted by the division for the regulationand control65 of slot machines operated under this chapter. TheSuch66 continuous and complete access, at any time on a real-time 67 basis, shall include the ability of either the division or the 68 Department of Law Enforcement to suspend play immediately on 69 particular slot machines if monitoring of the facilities-based 70 computer system indicates possible tampering or manipulation of 71 those slot machines or the ability to suspend play immediately 72 of the entire operation if the tampering or manipulation is of 73 the computer system itself. The division shall notify the 74 Department of Law Enforcement or the Department of Law 75 Enforcement shall notify the division, as appropriate, whenever 76 there is a suspension of play under this paragraph. The division 77 and the Department of Law Enforcement shall exchange thesuch78 information necessary for and cooperate in the investigation of 79 the circumstances requiring suspension of play under this 80 paragraph. 81 (f) Procedures for requiring each licensee at his or her 82 own cost and expense to supply the division with a bond having 83 the penal sum of $2 million payable to the Governor and his or 84 her successors in office for each year of the licensee’s slot 85 machine operations. TheAnybond shall be issued by a surety or 86 sureties approved by the division and the Chief Financial 87 Officer, conditioned to faithfully make the payments to the 88 Chief Financial Officer in his or her capacity as treasurer of 89 the division. The licensee shallberequired tokeep its books 90 and records and make reports as provided in this chapter andto91 conduct its slot machine operations in conformity with this 92 chapter and all other provisions of law. TheSuchbond shall be 93 separate and distinct from the bond required in s. 550.125. 94 (g) Procedures for requiring licensees to maintain 95 specified records and submit any data, information, record, or 96 report, including financial and income records, required by this 97 chapter or determined by the division to be necessary to the 98 proper implementation and enforcement of this chapter. 99 (h) A requirement that the payout percentage of a slot 100 machine be no less than 85 percent. 101 (i) Minimum standards for security of the facilities, 102 including floor plans, security cameras, and other security 103 equipment. 104 (j) Procedures for requiring slot machine licensees to 105 implement and establish drug-testing programs for all slot 106 machine occupational licensees. 107 (k) Specifications of the required internal components for 108 a slot machine, including the location, configuration, and 109 function of the components, and the operating requirements for 110 all hardware and software. 111 (l) Procedures and specifications for slot machines to 112 ensure the random probabilities of winning plays and the 113 specifications for the operation of the random-number generator 114 of each slot machine. 115 Section 2. Subsection (4) of section 551.104, Florida 116 Statutes, is amended to read: 117 551.104 License to conduct slot machine gaming.— 118 (4) As a condition of licensure and to maintain continued 119 authority for the conduct of slot machine gaming, the slot 120 machine licensee shall: 121 (a) Continue to be in compliance with this chapter. 122 (b) Continue to be in compliance with chapter 550, where 123 applicable, and maintain the pari-mutuel permit and license in 124 good standing pursuant to the provisions of chapter 550. 125Notwithstanding any contrary provision of law and in order to126expedite the operation of slot machines at eligible facilities,127any eligible facility shall be entitled within 60 days after the128effective date of this act to amend its 2006-2007 pari-mutuel129wagering operating license issued by the division under ss.130550.0115and550.01215. The division shall issue a new license131to the eligible facility to effectuate any approved change.132 (c) Conduct no fewer than a full schedule of live racing or 133 games as defined in s. 550.002(11). A permitholder’s 134 responsibility to conduct such number of live races or games 135 shall be reduced by the number of races or games that could not 136 be conducted due to the direct result of fire, war, hurricane, 137 or other disaster or event beyond the control of the 138 permitholder. 139 (d) Upon approval of any changes relating to the pari 140 mutuel permit by the division, be responsible for providing 141 appropriate current and accurate documentation on a timely basis 142 to the division in order to continue the slot machine license in 143 good standing. Changes in ownership or interest of a slot 144 machine license of 5 percent or more of the stock or other 145 evidence of ownership or equity in the slot machine license or 146 any parent corporation or other business entity that in any way 147 owns or controls the slot machine license mustshallbe approved 148 by the division before theprior to suchchange, unless the 149 owner is an existing holder of that license who was previously 150 approved by the division. Changes in ownership or interest of a 151 slot machine license of less than 5 percent, unless such change 152 results in a cumulative total of 5 percent or more, shall be 153 reported to the division within 20 days after the change. The 154 division may then conduct an investigation to ensure that the 155 license is properly updated to show the change in ownership or 156 interest. ReportingNo reportingis not required if the person 157 holdsis holding5 percent or less equity or securities of a 158 corporate owner of the slot machine licensee that has its 159 securities registered pursuant to s. 12 of the Securities 160 Exchange Act of 1934, 15 U.S.C. ss. 78a-78kk, and if such 161 corporation or entity files with the United States Securities 162 and Exchange Commission the reports required by s. 13 of that 163 act or if the securities of the corporation or entity are 164 regularly traded on an established securities market in the 165 United States. A change in ownership or interest of less than 5 166 percent which results in a cumulative ownership or interest of 5 167 percent or more mustshallbe approved by the division before 168 theprior to suchchange unless the owner is an existing holder 169 of the license who was previously approved by the division. 170 (e) Allow the division and the Department of Law 171 Enforcement unrestricted access to and right of inspection of 172 facilities of a slot machine licensee in which any activity 173 relative to the conduct of slot machine gaming is conducted. 174 (f) Ensure that the facilities-based computer system that 175 the licensee will use for operational and accounting functions 176 of the slot machine facility is specifically structured to 177 facilitate regulatory oversight. The facilities-based computer 178 system shall be designed to provide the division and the 179 Department of Law Enforcement with the ability to monitor, at 180 any time on a real-time basis, the wagering patterns, payouts, 181 tax collection, and such other operations as necessary to 182 determine whether the facility is in compliance with statutory 183 provisions and rules adopted by the division for the regulation 184 and control of slot machine gaming. The division and the 185 Department of Law Enforcement shall have complete and continuous 186 access to this system. Such access shall include the ability of 187 either the division or the Department of Law Enforcement to 188 suspend play immediately on particular slot machines if 189 monitoring of the system indicates possible tampering or 190 manipulation of those slot machines or the ability to suspend 191 play immediately of the entire operation if the tampering or 192 manipulation is of the computer system itself. The computer 193 system shall be reviewed and approved by the division to ensure 194 necessary access, security, and functionality. The division may 195 adopt rules to provide for the approval process. 196 (g) Ensure that each slot machine is protected from 197 manipulation or tamperingto affect the random probabilities of198winning plays. The division or the Department of Law Enforcement 199 hasshallhavethe authority to suspend play upon reasonable 200 suspicion of any manipulation or tampering. When play has been 201 suspended on any slot machine, the division or the Department of 202 Law Enforcement may examine theanyslot machine to determine 203 whether the machine has been tampered with or manipulated and 204 whether the machine should be returned to operation. 205 (h) Submit a security plan, including the facilities’ floor 206 plan, the locations of security cameras, and a listing of all 207 security equipment that is capable of observing and 208 electronically recording activities being conducted in the 209 facilities of the slot machine licensee. The security plan must 210 meet the minimum security requirements as determined by the 211 division under s. 551.103(1)(i) and be implemented before the 212prior tooperation of slot machine gaming. The slot machine 213 licensee’s facilities must adhere to the security plan at all 214 times. Any changes to the security plan must be submitted by the 215 licensee to the division before the plan is implementedprior to216implementation. The division shall furnish copies of the 217 security plan and changes in the plan to the Department of Law 218 Enforcement. 219 (i) Create and file with the division a written policy for: 220 1. Creating opportunities to purchase from vendors in this 221 state, including minority vendors. 222 2. Creating opportunities for employment of residents of 223 this state, including minority residents. 224 3. Ensuring opportunities for construction services from 225 minority contractors. 226 4. Ensuring that opportunities for employment are offered 227 on an equal, nondiscriminatory basis. 228 5. Training for employees on responsible gaming and working 229 with a compulsive or addictive gambling prevention program to 230 further its purposes as provided for in s. 551.118. 231 6. The implementation of a drug-testing program that 232 includes, but is not limited to, requiring each employee to sign 233 an agreement that he or she understands that the slot machine 234 facility is a drug-free workplace. 235 236 The slot machine licensee shall use the Internet-based job 237 listing system of the Department of Economic Opportunity in 238 advertising employment opportunities.Beginning in June 2007,239 Each slot machine licensee shall provide an annual report to the 240 division containing information indicating compliance with this 241 paragraph in regard to minority persons. 242 (j) Ensure that the payout percentage of a slot machine 243 gaming facility is at least 85 percent. 244 Section 3. Subsection (5) of section 551.121, Florida 245 Statutes, is amended to read: 246 551.121 Prohibited activities and devices; exceptions.— 247 (5) A slot machine’s random-number generator may not serve 248 more than one station or terminal where an individual player 249 places his or her wagers. However, a slot machine, or the 250 computer operating system linking the slot machine, may be 251 linked by any means to any other slot machine or computer 252 operating system within the facility of a slot machine licensee 253 for progressive jackpot payouts. A progressive system may not be 254 used in conjunction with slot machines between licensed 255 facilitiesin Florida or in other jurisdictions. 256 Section 4. This act shall take effect July 1, 2012.