HB 105 — Pari-mutuel Wagering

providing for the licensing of thoroughbred training centers;

prohibiting such centers from being issued certain licenses;

providing Page 2 of 38 CODING:

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hb105-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 105 2025 an exception;

authorizing the commission to adopt rules for such licensing and oversight;

providing for board membership of the not-for-profit corporation;

providing legislative findings;

preempting certain local laws, charters, ordinances, resolutions, regulations, policies, initiatives, or referendums;

providing application;

amending s.

550.3551, F.S.;

revising the entity responsible for approving changes to live racing minimums;

repealing s.

550.625, F.S., relating to Intertrack wagering, purses, and breeders' awards;

amending s.

550.6305, F.S.;

revising the entity to be paid certain breeders' awards;

amending s.

551.104, F.S.;

revising specified requirements for thoroughbred permitholders who have certain slot machine licenses;

amending s.

571.265, F.S.;

defining the term "commission";

revising entities receiving certain funds from the Department of Agriculture and Consumer Services;

providing for use of such funds;

providing requirements to receive such funds;

authorizing the department to adjust certain funding caps beginning a certain breeding season;

authorizing the department to adopt emergency rules;

providing legislative necessity;

exempting the department from certain rulemaking requirements;

authorizing a certain association to charge a specified registration fee for Page 3 of 38 CODING:

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hb105-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 105 2025 program participants;

requiring a certain association to make to the commission a certain report annually by a date certain and include specified information;

authorizing alternate distribution if certain permitholders no longer offer live racing;

amending s.

849.086, F.S.;

revising requirements for certain permitholders who have cardroom licenses;

amending ss.

550.0351, 550.2614, 550.26165, 550.2633, and 550.26352, F.S.;

conforming provisions to changes made by the act;

87 Be It Enacted by the Legislature of the State of Florida:

89 Section 1.

Each application for live performances must specify the number, dates, and starting times of all live performancesPage that1 theof permitholder6 intendsCODING: to conduct.

It must Page 4 of 38 CODING:

hb105-02-c2hb105-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 105 2025 also specify which performances willthat bethe conductedpermitholder asintends charityto orconduct. scholarship performances.

It must also specify which performances will be conducted as charity or scholarship performances.

A2. thoroughbred permitholder who operates a slot machine facility or cardroom shall offer a full schedule of live racing until such permitholder notifies the commission that it will no longer offer live racing.

NoticeA permitholder or licensee may not conduct live greyhound racing or dogracing in connection with any wager for Page 52 of 386 CODING:

hb105-02-c2hb105-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 105 2025 undermoney this subparagraph is not valid unless it is delivered on or afterany Julyother 1,thing 2027,of andvalue containsin the datestate. on which the permitholder will no longer offer live racing, which may not be earlier than 3 years after the date of the notice.

The permitholder is not required to deliver such notice when relocating under s.

550.3345.

2.

A permitholder or licensee may not conduct live greyhound racing or dogracing in connection with any wager for money or any other thing of value in the state.

ParagraphParagraphs (c)(d) through (j) of subsection (3)(4) of section 550.0951,551.104, Florida Statutes, isare amendedredesignated as paragraphs (c) through (i), respectively, and paragraph (c) of subsection (4) and paragraph (a) of subsection (10) of that section are amended, to read:

550.0951551.104 PaymentLicense ofto dailyconduct licenseslot feemachine gaming.— (4) As a condition of licensure and taxes;to maintain continued authority for the conduct of slot machine gaming, the slot machine licensee shall:

penalties.— (3) TAX ON HANDLE.—Each permitholder shall pay a tax on contributions to pari-mutuel pools, the aggregate of which is hereinafter referred to as "handle," on races or games conducted Page 6 of 38 CODING:

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hb105-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 105 2025 by the permitholder.

The tax is imposed daily and is based on the total contributions to all pari-mutuel pools conducted during the daily performance.

If a permitholder conducts more than one performance daily, the tax is imposed on each performance separately.

(c)1.

The tax on handle for intertrack wagering is 2.0 percent of the handle if the host track is a horse track, 3.3 percent if the host track is a harness track, 5.5 percent if the host track is a dog track, and 7.1 percent if the host track is a jai alai fronton.

The tax on handle for intertrack wagering is 0.5 percent if the host track and the guest track are thoroughbred permitholders or if the guest track is located outside the market area of the host track and within the market area of a thoroughbred permitholder currently conducting a live race meet.

The tax on handle for intertrack wagering on rebroadcasts of simulcast thoroughbred horseraces is 2.4 percent of the handle and 1.5 percent of the handle for intertrack wagering on rebroadcasts of simulcast harness horseraces.

The tax shall be deposited into the Pari-mutuel Wagering Trust Fund.

2.

The tax on handle for intertrack wagers accepted by any dog track located in an area of the state in which there are only three permitholders, all of which are greyhound permitholders, located in three contiguous counties, from any greyhound permitholder also located within such area or any dog track or jai alai fronton located as specified in s.

550.615(6) Page 7 of 38 CODING:

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hb105-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 105 2025 or (9), on races or games received from the same class of permitholder located within the same market area is 3.9 percent if the host facility is a greyhound permitholder and, if the host facility is a jai alai permitholder, the rate shall be 6.1 percent except that it shall be 2.3 percent on handle at such time as the total tax on intertrack handle paid to the commission by the permitholder during the current state fiscal year exceeds the total tax on intertrack handle paid to the commission by the permitholder during the 1992-1993 state fiscal year.

Section 3.

Section 550.26165, Florida Statutes, is amended to read:

(Substantial rewording of section.

See s.

550.26165, F.S., for present text.) 550.26165 Breeders' incentives, purses and special racing awards plan.— (1) A purse structure for racehorse owners which is competitive with the purses offered in other states is an important factor in attracting the entry of well-bred horses in race meets in this state.

The availability of awards to the owners and the breeders of Florida-bred racehorses, including the owners of Florida-based stallions, is an important factor used to incentivize the purchase of Florida-bred horses at auction and to induce well-bred stallions and mares to engage in breeding activities in the state.

In turn, the availability of Page 8 of 38 CODING:

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hb105-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 105 2025 these financial awards help to ensure the continuing viability of the thoroughbred industry in the state while simultaneously producing maximum revenues from licensed racing activity for the state and the counties.

The purpose of this section is to encourage the agricultural activity of owning, breeding, and racing Florida-bred racehorses.

(2) Moneys dedicated in this chapter for use as purse supplements to the owners of Florida-bred racehorses as breeders' awards and stallion awards are to be used to incentivize the ownership and the breeding of registered Florida-bred horses.

Such awards shall be given at a uniform rate pursuant to an annual plan developed by the commission.

The annual plan shall be developed with input from the Department of Agriculture and Consumer Services, stakeholders in the thoroughbred racing and breeding industry, and the general public and published in the Florida Administrative Register by January 1 for implementation during the next licensed racing year.

The awards programs described in this chapter must be responsive to rapidly changing incentive programs in other states and to accomplish this goal, the commission is authorized to use flexibility in the design and implementation of a competitive awards programs.

The plan approved by the commission shall allocate, for distribution by category, breeders' awards, stallion awards, and Florida-bred purse supplements available for distribution in the ensuing licensing year.

The amount Page 9 of 38 CODING:

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hb105-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 105 2025 available for distribution shall be derived from the following sources:

(a) A minimum amount equal to 0.955 percent on all pari- mutuel pools conducted on all wagering during each race meet, including any intertrack race taken pursuant to ss.

550.615- 550.6305 or any interstate simulcast taken pursuant to s.

550.3551(3).

This paragraph also applies to all Breeder's Cup races conducted outside this state taken pursuant to s.

550.3551(3).

(b) A minimum amount equal to 3.475 percent of the gross revenue derived by the thoroughbred permitholder when serving as the host track for wagering on any race originating live in this state which is broadcast out-of-state to any location at which wagers are accepted pursuant to s.

550.3551(2).

The permitholder conducting the races shall make the payments authorized in this section to the commission for deposit into the Pari-mutuel Wagering Trust Fund.

The permitholder shall remit to the commission such payments by the 5th day of each calendar month for such sums accruing during the preceding calendar month and provide any corresponding reporting as prescribed by the commission.

Such payments together with any interest earned shall be used exclusively for the payment of breeders', stallion, or special racing awards in accordance with the plan established pursuant to this section.

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hb105-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 105 2025 (3) In order for a breeder of a Florida-bred thoroughbred horse to be eligible to receive a breeder's award, the horse must have been registered as a Florida-bred horse with the Florida Thoroughbred Breeders' Association and the Jockey Club certificate for the horse must show that the horse has been duly registered as a Florida-bred horse.

The Florida Thoroughbred Breeders' Association may charge the registrant a reasonable fee for this verification and registration not to exceed $75 per horse.

(4) In order for an owner of the sire of a thoroughbred horse winning a stakes race to be eligible to receive a stallion award, the stallion must have been registered with the Florida Thoroughbred Breeders' Association and the live breeding of the registered Florida-bred horse must have occurred in this state.

The stallion must be standing permanently in this state between February 1 and June 15 of each year or, if the stallion is dead, must have stood permanently in this state for a period of at least 1 year immediately before its death.

The removal of a stallion from this state during the period of time between February 1 and June 15 of any year for any reason other than exclusively for prescribed medical treatment, as approved by the Florida Thoroughbred Breeders' Association, renders the owner or owners of the stallion ineligible to receive a stallion award under any circumstances for offspring sired before removal, however, if a removed stallion is returned to this state, all Page 11 of 38 CODING:

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hb105-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 105 2025 offspring sired subsequent to the return make the owner or owners of the stallion eligible for the stallion award but only for those offspring sired subsequent to such return to this state.

The Florida Thoroughbred Breeders' Association shall maintain complete records showing the date the stallion arrived in this state for the first time, whether or not the stallion remained in the state permanently, the location of the stallion, and whether the stallion is still standing in this state and complete records showing awards earned, received, and distributed.

The Florida Thoroughbred Breeders' Association may charge the stallion owner a reasonable fee for this service not to exceed $75 per stallion.

(5) Purses shall be funded from the pari-mutuel pools conducted by the permitholder.

A thoroughbred permit shall pay as purses during its race meets an amount equal to 7 percent of all wagers placed pursuant to s.

550.615 as purses during its current race meet.

(6) A permitholder conducting a thoroughbred horse race under the provisions of this chapter shall, within 30 days after the end of the race meet during which the race is conducted, certify to the commission such information relating to the thoroughbred horses winning a stakes or other horserace at the meet as may be required to determine the eligibility for payment of breeders', stallion, and special racing awards.

(7) The commission shall maintain complete records showing Page 12 of 38 CODING:

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hb105-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 105 2025 the starters and winners in all races conducted at thoroughbred tracks in this state and shall maintain complete records showing awards earned, received, and distributed.

(8) Any funds in the possession of the Florida Thoroughbred Breeders' Association which had been paid by any thoroughbred permitholder as required by any provision of chapter 550 or chapter 551 in effect when the payment was made or by the Florida Department of Agriculture and Consumer Services as required by any provision of chapter 571 in effect when the payment was made shall be immediately paid to the commission for deposit to the Pari-mutuel Wagering Trust Fund.

The commission shall authorize payment from such funds to any breeder or stallion owner entitled to an award that has not been previously paid by the Florida Thoroughbred Breeders' Association in accordance with the applicable plan of distribution.

(9) Breeders' awards or stallion awards authorized under this chapter, if authorized by a rule of the commission, may be paid with respect to thoroughbred horse races taking place in other states or countries.

(10) The commission shall adopt reasonable rules to ensure the timely and accurate payment of all amounts withheld by horserace permitholders regarding the distribution of purses, owners' awards, and other amounts collected for payment to owners and breeders pursuant to this section and this chapter.

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hb105-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 105 2025 (11) Each permitholder that fails to pay out all moneys collected for payment to owners and breeders shall, within 10 days after the end of the meet during which the permitholder underpaid purses, deposit an amount equal to the underpayment into a separate interest-bearing account established by the commission, which moneys shall be distributed to owners and breeders in accordance with commission rules.

(12) The commission may at any time adopt emergency rules pursuant to s.

120.54 to implement this section.

The Legislature finds that such emergency rulemaking power is necessary for the preservation of the rights and welfare of the people in order to provide additional funds to benefit the statewide thoroughbred racing and breeding industry.

The Legislature further finds that the unique nature of breeding and racing operations require, from time to time, that the commission respond as quickly as is practicable to changes in the marketplace.

Therefore, in adopting such emergency rules, the commission need not make the findings required by s.

120.54(4)(a).

Emergency rules adopted under this section are exempt from s.

120.54(4)(c) and shall remain in effect until replaced by other emergency rules or by rules adopted under the nonemergency rulemaking procedures of the Administrative Procedure Act.

Section 4.

Section 550.2625, Florida Statutes, is repealed.

Section 5.

Subsection (2) of section 550.3345, Florida Page 14 of 38 CODING:

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hb105-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 105 2025 Statutes, is amended, and subsections (4) and (5) are added to that section, to read:

550.3345 Conversion of quarter horse permit to a limited thoroughbred permit.— (2) Notwithstanding any other provision of law, the holder of a quarter horse racing permit issued under s.

550.334 may, within 1 year after the effective date of this section, apply to the commission for a transfer of the quarter horse racing permit to a not-for-profit corporation formed under state law to serve the purposes of the state as provided in subsection (1).

The board of directors of the not-for-profit corporation must be comprised of 11 members, 4 of whom shall be designated by the applicant, 4 of whom shall be designated by the commission Florida Thoroughbred Breeders' Association, and 3 of whom shall be designated by the other 8 directors, with at least 1 of these 3 members being an authorized representative of another thoroughbred permitholder in this state.

The not-for-profit corporation shall submit an application to the commission for review and approval of the transfer in accordance with s.

550.054.

Upon approval of the transfer by the commission, and notwithstanding any other provision of law to the contrary, the not-for-profit corporation may, within 1 year after its receipt of the permit, request that the commission convert the quarter horse racing permit to a permit authorizing the holder to conduct pari-mutuel wagering meets of thoroughbred racing.

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hb105-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 105 2025 Neither the transfer of the quarter horse racing permit nor its conversion to a limited thoroughbred permit shall be subject to the mileage limitation or the ratification election as set forth under s.

550.054(2) or s.

550.0651.

Upon receipt of the request for such conversion, the commission shall timely issue a converted permit.

The converted permit and the not-for-profit corporation shall be subject to the following requirements:

(a) All net revenues derived by the not-for-profit corporation under the thoroughbred horse racing permit and any license issued to the not-for-profit corporation under chapter 849, after the funding of operating expenses and capital improvements, shall be dedicated to the enhancement of thoroughbred purses and breeders', stallion, and special racing awards under this chapter;

the general promotion of the thoroughbred horse breeding industry;

and the care in this state of thoroughbred horses retired from racing.

(b) From December 1 through April 30, no live thoroughbred racing may be conducted under the permit on any day during which another thoroughbred permitholder is conducting live thoroughbred racing within 125 air miles of the not-for-profit corporation's pari-mutuel facility unless the other thoroughbred permitholder gives its written consent.

(c) After the conversion of the quarter horse racing permit and the issuance of its initial license to conduct pari- mutuel wagering meets of thoroughbred racing, the not-for-profit Page 16 of 38 CODING:

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hb105-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 105 2025 corporation shall annually apply to the commission for a license pursuant to s.

550.5251.

(d) Racing under the permit may take place only at the location for which the original quarter horse racing permit was issued, which may be leased by the not-for-profit corporation for that purpose;

however, the not-for-profit corporation may, without the conduct of any ratification election pursuant to s.

550.054(13) or s.

550.0651, move the location of racing under the permit to either:

1.

Another location in the same county provided that such relocation is approved under the zoning and land use regulations of the applicable county or municipality;

or.

2.

To a licensed thoroughbred training center located in a county which has previously authorized pari-mutuel wagering.

In order to be licensed as a thoroughbred training center, it must be designed and operated for the purpose of training, boarding, and caring for thoroughbred racehorses and be capable of providing instruction for sundry equestrian activities related to such horses.

The facility must have permanent stabling for at least 1,000 horses and operate multiple racecourses of varying surfaces for the training of thoroughbred racing.

Each racecourse must be at least 50 feet wide and 3,200 feet in length.

The training facility may include riding arenas, viewing stands, pastures, grooming and veterinary care areas, and related amenities.

Notwithstanding any other provision of law, Page 17 of 38 CODING:

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hb105-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 105 2025 such training center may not operate a cardroom, and such permitholder operating the training center may not be issued a cardroom operating license unless such permitholder held a valid cardroom license issued before January 1, 2025.

Notwithstanding any other provision of law, such training center may not operate a slot machine facility, and such permitholder operating the training center may not be issued a slot machine facility operating license.

(e) A permit converted under this section and a license issued to the not-for-profit corporation under chapter 849 are not eligible for transfer to another person or entity.

(4) In order to foster and protect the statewide importance and impact of thoroughbred racing and breeding throughout the state, the commission may adopt rules for the licensing and oversight of thoroughbred training centers in Florida which host live thoroughbred racing in conjunction with their training activities.

Racing at such facilities shall only be conducted by a permit converted under this section that has provided sufficient evidence to the commission that the governance of the not-for-profit corporation is controlled by board comprised of three appointees from owner of the training center, an individual appointed by the chair of the commission, and an individual appointed by the Commissioner of the Department of Agriculture and Consumer Services.

The board members may expand the board membership and make additional Page 18 of 38 CODING:

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hb105-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 105 2025 appointments to the board from time to time pursuant to the bylaws of the corporation.

(5) The Legislature finds and declares that it has exclusive preemptive authority over the conduct of all aspects of the business operations conducted at licensed thoroughbred training centers authorized under this section to conduct pari- mutuel wagering activities at such facilities, including, but not limited to, the regulation of all equestrian activities, all wagering activities, and land use.

As provided by law, only the commission shall administer this section and regulate the equestrian and pari-mutuel wagering activities conduced at, and land use applicable to, licensed thoroughbred training centers as authorized in this section and the rules adopted by the commission with respect thereto.

Any provision of a local law, a charter, an ordinance, a resolution, a regulation, a policy, an initiative, or a referendum which is in conflict with this section and which existed before, on, or after July 1, 2025, is prohibited, void, and expressly preempted to the state.

Section 6.

Paragraph (c) of subsection (3) and paragraphs (a) and (b) of subsection (6) of section 550.3551, Florida Statutes, are amended to read:

550.3551 Transmission of racing and jai alai information;

commingling of pari-mutuel pools.— (3) Any horse track licensed under this chapter may receive broadcasts of horseraces conducted at other horse Page 19 of 38 CODING:

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hb105-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 105 2025 racetracks located outside this state at the racetrack enclosure of the licensee, if the horse track conducted a full schedule of live racing during the preceding state fiscal year, or if the horse track does not conduct live racing as authorized under s.

550.01215.

(c) All forms of pari-mutuel wagering are allowed on races broadcast under this section, and all money wagered by patrons on such races shall be computed as part of the total amount of money wagered at each racing performance for purposes of taxation under ss.

550.0951, 550.09512, and 550.09515.

Section 550.2625(2)(a), (b), and (c) does not apply to any money wagered on races broadcast under this section.

Similarly, The takeout shall be increased by breaks and uncashed tickets for wagers on races broadcast under this section, notwithstanding any contrary provision of this chapter.

(6)(a) A permitholder conducting live races or games may not conduct fewer than eight live races or games on any authorized race day except as provided in this subsection.

A thoroughbred permitholder may not conduct fewer than eight live races on any race day without the written approval of the Florida Thoroughbred Breeders' Association and the Florida Horsemen's Benevolent and Protective Association, Inc., unless it is determined by the commission that another entity that represents a majority of the thoroughbred racehorse owners and trainers conducting racing during the licensed meet in the Page 20 of 38 CODING:

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hb105-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 105 2025 state.

If conducting live racing, a harness permitholder may conduct fewer than eight live races on any authorized race day.

Any harness horse permitholder may receive full-card broadcasts of harness horse races conducted at harness racetracks outside this state at the harness track of the permitholder and accept wagers on such harness races.

(b) Notwithstanding any other provision of this chapter, any harness horse permitholder accepting broadcasts of out-of- state harness horse races when such permitholder is not conducting live races must make the out-of-state signal available to all permitholders eligible to conduct intertrack wagering and shall pay to guest tracks located as specified in ss.

550.615(6) and 550.6305(9)(d) 50 percent of the net proceeds after taxes and fees to the out-of-state host track on harness race wagers which they accept.

A harness horse permitholder shall be required to pay into its purse account 50 percent of the net income retained by the permitholder on account of wagering on the out-of-state broadcasts received pursuant to this subsection.

Nine-tenths of a percent of all harness wagering proceeds on the broadcasts received pursuant to this subsection shall be paid to the Florida Standardbred Breeders and Owners Association under the provisions of s.

550.2625(4) for the purposes provided therein.

Section 7.

Section 550.625, Florida Statutes, is repealed.

Section 8.

Paragraphs (a), (b), and (e) of subsection (9) Page 21 of 38 CODING:

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hb105-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 105 2025 of section 550.6305, Florida Statutes, are amended to read:

550.6305 Intertrack wagering;

guest track payments;

accounting rules.— (9) A host track that has contracted with an out-of-state horse track to broadcast live races conducted at such out-of- state horse track pursuant to s.

550.3551(5) may broadcast such out-of-state races to any guest track and accept wagers thereon in the same manner as is provided in s.

550.3551.

(a) For purposes of this section, "net proceeds" means the amount of takeout remaining after the payment of state taxes, purses required pursuant to s.

550.0951(3)(c)1., the cost to the permitholder required to be paid to the out-of-state horse track, and breeders' awards paid to the commission Florida Thoroughbred Breeders' Association and the Florida Standardbred Breeders and Owners Association, to be used as set forth in this chapter s.

550.625(2)(a) and (b).

(b) Notwithstanding any provision of this chapter to the contrary the provisions of subsection (1) and s.

550.625(1) and (2)(a), the distribution of the net proceeds that are retained by a thoroughbred host track from the takeout on an out-of-state race rebroadcast under this subsection shall be as follows:

1.

One-third of the remainder of such proceeds shall be paid to the guest track;

2.

One-third of the remainder of such proceeds shall be retained by the host track;

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hb105-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 105 2025 3.

One-third of the remainder of such proceeds shall be paid by the host track as purses at the host track.

(e) Notwithstanding any provision of this chapter to the contrary the provisions of subsection (1) and s.

550.625(1) and (2)(b), the proceeds that are retained by a harness host facility from the takeout on a race broadcast under this subsection shall be distributed as follows:

1.

Of the total intertrack handle on the broadcast, 1 percent shall be deducted from the proceeds and paid to the Florida Standardbred Breeders and Owners Association, Inc., to be used as set forth in s.

550.625(2)(b);

2.

One-third of the remainder of such proceeds shall be paid to the guest facility;

3.

One-third of the remainder of such proceeds shall be retained by the host facility;

and 4.

One-third of the remainder of said proceeds shall be paid by the host facility as purses at the host facility.

Section 9.

Paragraphs (d) through (j) of subsection (4) and paragraphs (b) through (d) of subsection (10) of section 551.104, Florida Statutes, are redesignated as paragraphs (c) through (i) and (a) through (c), respectively, and paragraph (c) of subsection (4) and paragraph (a) of subsection (10) are amended, to read:

551.104 License to conduct slot machine gaming.— (4) As a condition of licensure and to maintain continued Page 23 of 38 CODING:

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hb105-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 105 2025 authority for the conduct of slot machine gaming, the slot machine licensee shall:

A permitholder's responsibility to conduct live races or games shall be reduced by the number of races or games that could not be conducted due to the direct result of fire, strike, war, hurricane, pandemic, or other disaster or event beyondPage the3 control of the6 permitholder.CODING:

(10)(a)1.

No slot machine license or renewal thereof shall be issued to an applicant holding a permit under chapter 550 to conduct pari-mutuel wagering meets of thoroughbred racing unless the applicant has on file with the commission a binding written agreement between the applicant and the Florida Horsemen's Benevolent and Protective Association, Inc., governing the payment of purses on live thoroughbred races conducted at the licensee's pari-mutuel facility.

In addition, no slot machine license or renewal thereof shall be issued to such an applicant unless the applicant has on file with the commission a binding written agreement between the applicant and the Florida Thoroughbred Breeders' Association, Inc., governing the payment of breeders', stallion, and special racing awards on live thoroughbred races conducted at the licensee's pari-mutuel facility.

The agreement governing purses and the agreement governing awards may direct the payment of such purses and Page 24 of 38 CODING:

hb105-02-c2hb105-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HBCS/HB 105 2025 awardsbeyond fromthe revenuescontrol generatedof by any wagering or gaming the applicantpermitholder. is authorized to conduct under Florida law.

(10)(a)1.

If a thoroughbred permitholder elects to conduct live racing, then no slot machine license or renewal thereof shall be issued to an applicant holding a permit under chapter 550 to conduct pari-mutuel wagering meets of thoroughbred racing unless the applicant has on file with the commission a binding written agreement between the applicant and the Florida Horsemen's Benevolent and Protective Association, Inc., governing the payment of purses on live thoroughbred races conducted at the licensee's pari-mutuel facility.

In addition, no slot machine license or renewal thereof shall be issued to such an applicant unless the applicant has on file with the commission a binding written agreement between the applicant and the Florida Thoroughbred Breeders' Association, Inc., governing the payment of breeders', stallion, and special racing awards on live thoroughbred races conducted at the licensee's pari-mutuel facility.

The agreement governing purses and the agreement governing awards may direct the payment of such purses and awards from revenues generated by any wagering or gaming the applicant is authorized to conduct under Florida law.

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hb105-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB 105 2025 2.

Section 10.3.

Paragraph (b)(c) of subsection (1)(5) and subsection (4) of section 571.265,849.086, Florida Statutes, are redesignated as paragraph (c) and renumbered as subsection (5), respectively, subsection (3) is amended,amended and a new paragraph (b) is added to subsectionread: (1) and a new subsection (4) is added to that Page 25 of 38 CODING:

Words849.086 strickenCardrooms areauthorized.— deletions;(5) LICENSE REQUIRED;

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hb105-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 105 2025 section, to read:

571.265 Promotion of Florida thoroughbred breeding and of thoroughbred racing at Florida thoroughbred tracks;

distribution of funds.— (1) For purposes of this section, the term:

(b) "Commission" means the Florida Gaming Control Commission.

(3) The department shall distribute the funds made available under this section as follows:

(a) Five million dollars shall be distributed to the commission association to be used for the following:

1.

One million five hundred thousand dollars shall be used for a program established by the department for the recruitment and retention of thoroughbred stallions and mares for breeding.

The department shall adopt rules and administer a grant program to implement this section which shall be available to new stallions and mares registered with the association after July 1, 2025.

Funds may be used to assist with the cost of relocation of out-of-state stallions and mares and to subsidize the costs of breeding to registered Florida stallions.

Reimbursement rates under the program shall be as follows:

a.

Twenty-five thousand dollars shall be available after verification by the department of the relocation and the registration with the association of a new stallion from out of state.

No more than ten new stallions each year that relocate to Page 26 of 38 CODING:

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hb105-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 105 2025 Florida and register with the association may be eligible for funds under this paragraph.

b.

Up to $15,000 in additional funds shall be available for each stallion registered with the association after July 1, 2025, subject to performance criteria as a stud established by the department for payment at the conclusion of the first foaling season following year after its registration.

c.

One thousand five hundred dollars per mare that has previously been bred to a thoroughbred stallion in an out-of- state location upon the mare's relocation to Florida and the mare's registration with the association after July 1, 2025,to assist in the costs associated with the mare's relocation to Florida and registration with the association.

d.

One thousand dollars per mare located in Florida that at the time of registration with the association has not previously been bred to a thoroughbred stallion.

2.

Three million five hundred thousand dollars shall be used to provide for the reimbursement of stallion fees to the owner of mares registered with the association after the mare produces a live foal from a breeding with a stallion participating in the program.

The owner of a mare may seek reimbursement after the mare produces a live foal and the foal's registration with the association.

The owners of mares registered with the association may seek reimbursement for stallion stud fees from the department under the following Page 27 of 38 CODING:

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hb105-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 105 2025 criteria:

a.

Owners of mares may only seek reimbursement for stallion stud fees that were $10,000 or less at the time of the breeding.

b.

The owner of a mare registered with the association before July 1, 2025, or the owner of a mare registered after July 1, 2025, that received reimbursement for a stallion stud fee resulting in a live foal under sub-paragraph c.

shall receive reimbursement of fifty percent of the stallion fee, up to $7,500.

c.

The owner of a mare registered with the association after July 1, 2025, shall receive a reimbursement of one hundred percent of the stallion stud fee, up to $10,000 for its first live foal that the mare produces from a breeding to a stallion participating in the program.

d.

The department may adjust the caps established under sub-subparagraph a.

in the annual program adopted by the department beginning with the 2028 breeding season and in sub- subparagraph b.

beginning with the 2029 breeding season.

The owner of any horse participating in or receiving funds from this program may only sell the participating mare or stallion in a private sale or via a public sale at a sales venue located in this state and licensed by the department pursuant to s.

535.01.

The department may at any time adopt emergency rules, forms, and Page 28 of 38 CODING:

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hb105-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 105 2025 audit procedures pursuant to s.

120.54.

The Legislature finds that such emergency rulemaking power is necessary for the preservation of the rights and welfare of the people participating in the annual program in order to provide these additional funds to benefit the public.

The Legislature further finds that the unique nature of thoroughbred breeding operations requires, from time to time, that the department respond as quickly as is practicable to changes in the marketplace.

Therefore, in adopting such emergency rules, the department need not make the findings required by s.

120.54(4)(a).

Emergency rules adopted under this section are exempt from s.

120.54(4)(c) and shall remain in effect until replaced by other emergency rules or by rules adopted under the nonemergency rulemaking procedures of the Administrative Procedure Act.

The association may charge a registration fee not to exceed $75 for each registered mare participating in the program and shall submit to the commission and the department annually by July 30 a report detailing the new and current owners and horses participating in the program.

1.

Purses or purse supplements for Florida-bred or Florida-sired horses registered with the association that participate in Florida thoroughbred races.

2.

Awards to breeders of Florida-bred horses registered with the association that win, place, or show in Florida thoroughbred races.

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hb105-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 105 2025 3.

Awards to owners of stallions who sired Florida-bred horses registered with the association that win Florida thoroughbred stakes races, if the stallions are registered with the association as Florida stallions standing in this state.

4.

Other racing incentives connected to Florida-bred or Florida-sired horses registered with the association that participate in thoroughbred races in Florida.

5.

Awards administration.

6.

Promotion of the Florida thoroughbred breeding industry.

(b) Five million dollars shall be distributed to Tampa Bay Downs, Inc., to be used as purses in thoroughbred races conducted at its pari-mutuel facilities and for the maintenance and operation of that facility, pursuant to an agreement with its local majority horsemen's group.

(c) Fifteen million dollars shall be distributed to Gulfstream Park Racing Association, Inc., to be used as purses in thoroughbred races conducted by either Gulfstream Park Racing Association or Gulfstream Park Thoroughbred Aftercare and Retirement Association at their current pari-mutuel facility as allowed under ss.

550.475 and 550.3345(2)(d) and for the maintenance and operation of its facility at its pari-mutuel facility and for the maintenance and operation of its facility, pursuant to an agreement with the Florida Horsemen's Benevolent and Protective Association, Inc.

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hb105-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 105 2025 (d) Two and one-half million dollars shall be distributed as follows:

1.

One Two million dollars to Gulfstream Park Racing Association, Inc., and Gulfstream Park Thoroughbred Aftercare and Retirement Association, to be used as purses and purse supplements for Florida-bred or Florida-sired horses registered with the association that participate in thoroughbred races at the permitholder's racing location pari-mutuel facility, pursuant to a written agreement filed with its majority horsemen's group the department establishing the rates, procedures, and eligibility requirements entered into by the permitholder, the association, and the Florida Horsemen's Benevolent and Protective Association, Inc.

2.

One million dollars to Gulfstream Park Racing Association, Inc., to be used as restricted purses for Florida- bred or Florida-sired horses registered with the association that participate in thoroughbred races conducted at the permitholder's pari-mutuel facility between May 1 and November 1 pursuant to a written agreement with its majority horsemen's group.

The plan for payment of the restricted purses shall be submitted to the commission and incorporated into its annual plan for purses and purse supplements.

Funds allocated under this paragraph shall be for racing purses only, and no administrative fees shall be deducted from these funds.

3.2.

Five hundred thousand dollars to Tampa Bay Downs, Page 31 of 38 CODING:

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hb105-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 105 2025 Inc., to be used as purses and purse supplements for Florida- bred or Florida-sired horses registered with the association that participate in thoroughbred races at the permitholder's pari-mutuel facility, pursuant to an annual plan established by the commission a written agreement filed with the department establishing the rates, procedures, and eligibility requirements entered into by the permitholder, the association, and the local majority horsemen's group at the permitholder's pari-mutuel facility.

(4) If either permitholder referenced to in paragraphs (3)(b) or (c) elects to no longer offer live racing performances such permitholder's allocation of the fund shall be distributed to any other permitholder which is licensed to offer a full calendar of live racing at a location that is more than 125 miles from the location of a permitholder which did not elect to discontinue offering live performances.

If there is more than one, the funds shall be prorated proportionately according to live race days.

If there are no permitholders offering live racing performances outside the 125-mile restricted area, the nonelecting permitholder shall receive 100 percent of the funds subject to offering a full racing calendar.

Section 11.

Paragraph (c) of subsection (5) and paragraph (d) of subsection (13) of section 849.086, Florida Statutes, are amended to read:

849.086 Cardrooms authorized.— Page 32 of 38 CODING:

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hb105-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 105 2025 (5) LICENSE REQUIRED;

550.054(15)(a), may not be issued a license for the operation of a cardroom if the permitholder did notPage hold5 an operating license for the conduct of pari-mutuel6 wageringCODING: for fiscal year 2020-2021.

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hb105-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/HB 105 2025 not hold an operating license for the conduct of pari-mutuel wagering for fiscal year 2020-2021.

(13)Section TAXES4. AND OTHER PAYMENTS.— (d)1.

Each jai alai permitholder that conducts live Page 33 of 38 CODING:

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hb105-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 105 2025 performances and operates a cardroom facility shall use at least 4 percent of such permitholder's cardroom monthly gross receipts to supplement jai alai prize money during the permitholder's next ensuing pari-mutuel meet.

2.

Each thoroughbred permitholder or harness horse racing permitholder that conducts live performances and operates a cardroom facility shall use at least 50 percent of such permitholder's cardroom monthly net proceeds as follows:

47 percent to supplement purses and 3 percent to supplement breeders' awards during the permitholder's next ensuing racing meet.

2.3.

No cardroom license or renewal thereof shall be issued to an applicant holding a permit under chapter 550 to conduct pari-mutuel wagering meets of quarter horse racing and conducting live performances unless the applicant has on file with the commission a binding written agreement between the applicant and the Florida Quarter Horse Racing Association or the association representing a majority of the horse owners and trainers at the applicant's eligible facility, governing the payment of purses on live quarter horse races conducted at the licensee's pari-mutuel facility.

The agreement governing purses may direct the payment of such purses from revenues generated by any wagering or gaming the applicant is authorized to conduct under Florida law.

All purses shall be subject to the terms of chapter 550.

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hb105-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 105 2025 Section 12.

Subsection (4) of section 550.0351, Florida Statutes, is amended to read:

550.0351 Charity days.— (4) The total of all profits derived from the conduct of a charity day performance must include all revenues derived from the conduct of that performance, including all state taxes that would otherwise be due to the state, except that the daily license fee as provided in s.

550.0951(1) and the breaks for the promotional trust funds as provided in s.

550.2625(3), (4), (5), (7), and (8) shall be paid to the commission.

All other revenues from the charity performance, including the commissions, breaks, and admissions and the revenues from parking, programs, and concessions, shall be included in the total of all profits.

Section 13.

Subsection (1) of section 550.2614, Florida Statutes, is amended to read:

550.2614 Distribution of certain funds to a horsemen's association.— (1) Each licensee that holds a permit for thoroughbred horse racing in this state shall deduct from the purses required by s.

550.2625, an amount of money equal to 1 percent of the total purse pool and shall pay that amount to a horsemen's association representing the majority of the thoroughbred racehorse owners and trainers for its use in accordance with the stated goals of its articles of association filed with the Department of State.

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hb105-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 105 2025 Section 14.

Paragraph (b) of subsection (5) of section 550.26165, Florida Statutes, is amended to read:

550.26165 Breeders' awards.— (5) (b) Notwithstanding any other provision of law to the contrary, the Florida Thoroughbred Breeders' Association, as part of its annual plan, may:

1.

Pay breeders' awards on horses finishing in first, second, or third place in thoroughbred horse races;

pay breeders' awards that are greater than 20 percent and less than 15 percent of the announced gross purse;

and vary the rates for breeders' awards, based upon the place of finish, class of race, state or country in which the race took place, and the state in which the stallion siring the horse was standing when the horse was conceived;

2.

Pay stallion awards on horses finishing in first, second, or third place in thoroughbred horse races;

pay stallion awards that are greater than 20 percent and less than 15 percent of the announced gross purse;

reduce or eliminate stallion awards to enhance breeders' awards or awards under subparagraph 3.;

and vary the rates for stallion awards, based upon the place of finish, class of race, and state or country in which the race took place;

and 3.

Pay awards from the funds dedicated for breeders' awards and stallion awards to owners of registered Florida-bred Page 36 of 38 CODING:

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hb105-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 105 2025 horses finishing in first, second, or third place in thoroughbred horse races in this state, without regard to any awards paid pursuant to s.

550.2625(6).

Section 15.

Subsection (2) of section 550.2633, Florida Statutes, is amended to read:

550.2633 Horseracing;

distribution of abandoned interest in or contributions to pari-mutuel pools.— (2) All moneys or other property which has escheated to and become the property of the state as provided herein and which is held by a permitholder authorized to conduct pari- mutuel pools in this state shall be paid annually by the permitholder to the recipient designated in this subsection within 60 days after the close of the race meeting of the permitholder.

Section 550.1645 notwithstanding, the moneys shall be paid by the permitholder as follows:

(a) Funds from any harness horse races shall be paid to the Florida Standardbred Breeders and Owners Association and shall be used for the payment of breeders' awards, stallion awards, stallion stakes, additional purses, and prizes for, and for the general promotion of owning and breeding of, Florida- bred standardbred horses, as provided for in s.

550.2625.

(b) Funds from quarter horse races shall be paid to the Florida Quarter Horse Breeders and Owners Association and shall be allocated solely for supplementing and augmenting purses and prizes and for the general promotion of owning and breeding of Page 37 of 38 CODING:

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hb105-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB 105 2025 racing quarter horses in this state, as provided for in s.

550.2625.

Section 16.

Subsection (7) of section 550.26352, Florida Statutes, is amended to read:

550.26352 Breeders' Cup Meet;

pools authorized;

conflicts;

taxes;

credits;

transmission of races;

rules;

application.— (7) The permitholder conducting the Breeders' Cup Meet shall be exempt from the payment of purses and other payments to horsemen on all on-track, intertrack, interstate, and international wagers or rights fees or payments arising therefrom for all races for which the purse is paid or supplied by Breeders' Cup Limited.

The permitholder conducting the Breeders' Cup Meet shall not, however, be exempt from breeders' awards payments for on-track and intertrack wagers as provided in ss.

550.2625(3) and 550.625(2)(a) for races in which the purse is paid or supplied by Breeders' Cup Limited.

Section 17.

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