61D-14.003: Renewal of Slot Machine Licenses
61D-14.011: Occupational License and Fingerprint Fees
61D-14.017: Days and Hours of Operation
61D-14.019: Compulsive or Addictive Gambling Prevention Program
61D-14.031: Bill Acceptors
61D-14.059: Slot Machine Licensee Personnel
61D-14.080: Retention, Storage and Destruction of Books, Records, and Documents
61D-14.082: Annual Financial Report
61D-14.086: Annual Compliance Audit
61D-14.090: Prohibited Acts
61D-14.200: Educational or Training Facilities
61D-14.203: Certified Educational Facility License Application
PURPOSE AND EFFECT: The purpose and effect of the proposed rules will be to implement Florida Statutes pertaining to the regulation of slot machine operations at pari-mutuel racing facilities.
SUMMARY: Rule 61D-14.003, F.A.C., revises the qualification required for renewal of slot machine license. Rule 61D-14.011, F.A.C., revises the license fee structure and clarifies language in the current rule. Rule 61D-14.017, F.A.C., revises the process to permit approval of variations in operational schedules. Rule 61D-14.019, F.A.C., includes record keeping requirements for all training and follow-up training provided to employees. Rule 61D-14.031, F.A.C., updates language regarding bill acceptor processing and clarifies meaning of rule. Rule 61D-14.059, F.A.C., provides requirement for the drug testing program for licensed facilities and clarifies language in rule. Rule 61D-14.080, F.A.C., clarifies what records are to be retained permanently and which shall be retained for at least five years; also clarifies the rule language. Rule 61D-14.082, F.A.C., modifies language to include a reference to the uniform annual report rule for pari-mutuel activities in Rule 61D-8.002, F.A.C., and harmonize the timing and substance of all reports from the pari-mutuel and slot machine facility. Rule 61D-14.086, F.A.C., provides requests for annual report of facility written policy and summary of activity for prior year as required in Section 551.104, F.S. Rule 61D-14.090, F.A.C., clarifies language regarding prohibited acts to include the violation of facility drug-free work environment and violation for ejection of licensed personnel. Rule 61D-14.200, F.A.C., provides the requirements and procedures for licensure and operation of storage and maintenance facilities and educational, training, and testing facilities. Rule 61D-14.203, F.A.C., provides procedures to obtain licensure for certified educational facilities that intend to provide training and education services related to slot machine gaming in the state.
OTHER RULES INCORPORATING THIS RULE: Rules 61D-14.005, 14.006, and 14.008 incorporate Rule 61D-14.011. Rule 61D-14.002 incorporates Rule 61D-14.017. Rules 61D-14.038, 14.047, 14.058, 14.079, 14.096, and 14.097 incorporate Rule 61D-14.080.
EFFECT ON THOSE OTHER RULES: Rule 61D-14.011 has no effect on Rules 61D-14.005, 14.006, and 14.008. Rule 61D-14.017 has no effect on Rule 61D-14.002. Rule 61D-14.080 has no effect on Rules 61D-14.038, 14.058, 14.079, and 14.096. Rule 61D-14.080 adds an additional requirement to Rule 61D-14.047 of maintaining a readily accessible copy of back-up data records. Rule 61D-14.080 adds an additional requirement to Rule 61D-14.097 regarding shipping records.
SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS: The agency has determined that this rule will not have an impact on small business. A SERC has not been prepared by the agency.
Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.
SPECIFIC AUTHORITY: 551.103(1), (2), (5), 551.109(2), 551.116, 551.122 FS.
LAW IMPLEMENTED: 551.103(1)(a), (b), (c), (d), (e), (g), (h), (i), (j), (2), (3), (4)(a), 551.104(4)(a), (d), (i), (8), 551.107(4)(a), 551.109(2)(a), (b), 551.112, 551.116, 551.118(1), 551.122, 849.15(2) FS.
IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE HELD AT THE DATE,TIME AND PLACE SHOWN BELOW(IF NOT REQUESTED, THIS HEARING WILL NOT BE HELD):
DATE AND TIME: November 16, 2010, 1:00 p.m. – 5:00 p.m.
PLACE: Florida Department of Business and Professional Regulation, Northwood Centre, Board Room, 1940 N. Monroe Street, Tallahassee, Florida 32399
Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 5 days before the workshop/meeting by contacting: Mary Polombo at (850)413-0750. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Mary Polombo, Clerk, Division of Pari-Mutuel Wagering, 1940 North Monroe Street, Tallahassee, Florida 32399-1035
THE FULL TEXT OF THE PROPOSED RULE IS:
(Substantial rewording of Rule 61D-14.003 follows. See Florida Administrative Code for present text.)
61D-14.003 Renewal of Slot Machine Licenses.
(1) A slot machine license shall be renewed annually on the anniversary date of issuance of the initial license.
(2) A license renewal application shall:
(a) Be filed with the division no less than 90 days prior to the anniversary date of the license; and
(b) Include:
1. Any changes to the information set forth in Rule 61D-14.002, F.A.C.;
2. A copy of the licensee’s current internal controls;
3. Payment of the fees specified by Section 551.106, F.S.; and
4. Certification of renewal of the bond required by paragraph 61D-14.002(1)(j), F.A.C., or a new bond meeting the requirements of that paragraph.
(3) To renew a slot machine license, the division must:
(a) Receive a timely complete application for renewal on Form DBPR PMW-3405, Permitholder Renewal Application for Annual Slot Machine License, effective _______, adopted herein by reference, and can be obtained at www.myfloridalicense.com/dbpr/pmw or by contacting the Division of Pari-Mutuel Wagering at 1940 North Monroe Street, Tallahassee, Florida 32399-1035;
(b) Receive payment of the fees specified by Section 551.106, F.S.;
(c) Determine, following investigation of the renewal application, that there are no disqualifications for licensure under Chapter 551, F.S., and Chapter 61D-14, F.A.C.; and
(d) Approve the licensee’s current internal controls.
Rulemaking Specific Authority 551.103(1), 551.122 FS. Law Implemented 551.103(1)(a), (b), 551.104(4) FS. History–New 7-30-06, Amended________.
61D-14.011 Occupational License and Fingerprint Fees.
(1) The license fee for an individual applying for a license under Rule 61D-14.005, F.A.C., shall be $50 for a one-year license, or $100 $150 for a three-year license.
(2) The slot machine occupational license fee for a business entity applying for an occupational licensee under 61D-14.006, F.A.C., shall be $1,000 for a one-year license, or $2,000 $3,000 for a three-year license.
(3) An applicant for general slot machine occupational license shall provide his or her application to the division with a written acknowledgement from the slot machine licensee agreeing to pay the division the fee established in subsection (1).
(4) An applicant for a professional occupational license shall submit payments for licensure and fingerprinting to the slot machine licensee and provide an acknowledgement from the slot machine licensee agreeing to pay the division the fee established in subsection (1).
(5) The slot machine licensee shall remit a check or money order daily for payment of all general and professional occupational licenses for employees who work at the slot machine facility outlined in subsections (3) and (4) above to the division.
(3) A slot machine licensee is responsible for payment of all its employees’ professional and general slot machine occupational licenses, which shall be made utilizing a voucher that is paid by the licensee the same day the voucher is submitted.
(4)(6) An applicant for a business entity occupational license, including those individuals employed by the business entity, shall provide a check or money order for payment of fingerprint fees with their occupational license applications for a slot machine occupational license. The employing business entity may provide payment for its A check or money order can be provided for the individual employees by the employing business entity. The fee for fingerprinting shall equal the fee established by Section 943.053(3)(b), F.S., and subsection 11C-6.010(5), F.A.C.
(5)(7) Payment of professional and general employee application fees by the slot machine licensee shall be submitted to the division at the division’s office located on the grounds of the slot machine licensee’s facility.
Rulemaking Specific Authority 551.103(1), 551.122 FS. Law Implemented 551.103(1)(a), (b), (g), 551.107(4)(a), (d) FS. History– New 6-25-06, Amended________.
(Substantial rewording of Rule 61D-14.017 follows. See Florida Administrative Code for present text.)
61D-14.017 Days and Hours of Operation.
(1) The slot machine licensee’s initial license application shall set forth its slot machine gaming area’s days and hours of operation.
(2) The slot machine licensee shall provide no less than 10 days written notice to the division in advance of its changing the hours of operation of its slot machine gaming area.
(3) The designation of a slot machine licensee’s days and hours operation shall not change the time for submission of the management and regulatory reports required by Rule 61D-14.048, F.A.C.
Rulemaking Specific Authority 551.103(1), 551.122 FS. Law Implemented 551.103(1)(d), (e), 551.116 FS. History–New 6-25-06, Amended________.
(Substantial rewording of Rule 61D-14.019 follows. See Florida Administrative Code for present text.)
61D-14.019 Compulsive or Addictive Gambling Prevention Program.
(1) A slot machine licensee shall develop and implement a compulsive or addictive gambling prevention program.
(2) That program shall:
(a) Designate a person responsible for ensuring that the licensee’s compulsive or addictive gambling prevention program is implemented and administered;
(b) Provide printed materials to educate patrons about compulsive gambling and inform them of local and state resources available for compulsive gamblers and their families;
(c) Require that all marketing and promotional material have a compulsive or addictive gamblers prevention program contact information;
(d) Provide a method for notifying slot machine licensee patrons that any patron may request voluntary exclusion from the slot machine licensee’s facility;
(e) Require that each employee of the licensee receives initial training in the licensee’s compulsive or addictive gambling prevention program within 30 days of the date of hire;
(f) Document all compulsive or addictive gambling prevention program training, which shall include:
1. The name of each employee trained;
2. The date and time of training;
3. The name of the person or entity providing the training; and
4. Retention of all training records as required by Rule 61D-14.080, F.A.C.
(g) Require annual refresher training for each employee.
Rulemaking Specific Authority 551.103(1), 551.122 FS. Law Implemented 551.103(1)(a), (b), (g), (i), 551.104(4)(i), 551.118(1) FS. History–New 7-30-06, Amended________.
(Substantial rewording of Rule 61D-14.031 follows. See Florida Administrative Code for present text.)
61D-14.031 Bill Acceptors.
All bill acceptors shall:
(1) Be installed in a slot machine;
(2) Be electronically based;
(3) Be constructed in a manner to:
(a) Protect against vandalism, abuse, and fraudulent activity; and
(b) Prevent acceptance of invalid bills, tickets, or vouchers.
(4) Use a bi-directional communication protocol;
(5) Detect the entry of all bills, tickets, or vouchers; and
(6) Register credits only when the bill, ticket, or voucher has passed the point where it is accepted and has been irrevocably stacked.
Rulemaking Specific Authority 551.103(1), 551.122 FS. Law Implemented 551.103(1)(c), (d), (e), (i) FS. History–New 6-25-06, Amended________.
(Substantial rewording of Rule 61D-14.059 follows. See Florida Administrative Code for present text.)
61D-14.059 Slot Machine Licensee Personnel.
(1) Each slot machine licensee shall maintain a level of staffing, supervision, and delineation of organizational responsibilities to ensure the slot machine licensee’s slot machine gaming operation meets the requirements of Chapter 551, F.S., and its approved internal control procedures.
(2) The slot machine licensee’s internal controls shall require, prior to the employment of a potential employee:
(a) A completed employment application;
(b) A completed drug test;
(c) A signed agreement acknowledging that the facility is a drug-free work place;
(d) A credit report; and
(e) Verification that each prospective supervisory, managerial, or surveillance employee has the skills, training, and experience for the position.
(3) The slot machine licensee shall maintain a personnel file for each employee which shall contain:
(a) The items listed in subsection (2) above;
(b) A copy of the employee’s current slot machine occupational license;
(c) A chronological record of all positions the employee held indicating:
1. The position title; and
2. The effective date of filling the position.
(d) All employee performance evaluations; and
(e) A record of all disciplinary actions related to the employee containing written documentation of all:
1. Division disciplinary actions;
2. Verbal or written counseling regarding employee job performance or conduct; and
3. Employee demotions, reprimands, or separations.
(f) An employee training record documenting:
1. All training an employee completes during his or her employment at the slot machine facility; and
2. The title or description of the training, date completed, length of instruction, and name of the instructor.
(g) Federal and state income tax returns filed in the previous five years by all employees holding a professional slot machine occupational license.
Rulemaking Specific Authority 551.103(1), 551.122 FS. Law Implemented 551.103(1)(g), (i), (j) FS. History–New 6-25-06, Amended _________.
(Substantial rewording of Rule 61D-14.080 follows. See Florida Administrative Code for present text.)
61D-14.080 Retention, Storage, and Destruction of Books, Records, and Documents.
(1) The books, records, and documents addressed by this rule are all forms, reports, accounting and financial records, ledgers, subsidiary records, computer generated data, internal audit records, correspondence (including email), surveillance records, surveillance reports, personnel records, and compulsive gambling program records of any form or nature, written or electronic.
(2) All books, records, and documents prepared or generated by or on behalf of a slot machine licensee, a slot machine manufacturer or distributor, a certified educational institution authorized to maintain slot machines, or other licensed slot machine business entity as described in subsection 61D-14.006(1)(a), F.A.C., shall be:
(a) Retained on site in a secure storage location for a period of at least one year from the date of the book’s, record’s, or document’s last entry or creation;
(b) Maintained for at least four additional years in a secure storage location either at the licensed slot machine facility or at another secure location with a workspace allowing for inspection of the records; and
(c) Organized and indexed in such a manner as to provide immediate accessibility of all books, records, and documents.
(3) No book, record or document shall be destroyed prior to the minimum retention period unless approved by the division in writing.
(4) The slot machine licensee shall retain:
(a) All tickets and vouchers either in hard copy or electronically on site for a period of 60 days;
(b) A hard copy or electronic image of all tickets and vouchers in a secure location for a period of no less than four months after the initial 60 days; and
(c) A hard copy or electronic image of all tickets and vouchers specifically identified by the division until otherwise instructed.
Rulemaking Specific Authority 551.103(1), 551.122 FS. Law Implemented 551.103(1)(d), (g) FS. History–New 6-25-06, Amended ________.
(Substantial rewording of Rule 61D-14.082 follows. See Florida Administrative Code for present text.)
61D-14.082 Annual Financial Report.
(1) Each slot machine licensee shall generate an annual financial report which shall:
(a) Be prepared according to acceptable general accounting principles;
(b) Be based on the slot machine licensee’s audited financial statements prepared by an independent certified public accountant in accordance with generally accepted accounting and auditing principles;
(c) Use the audited financial statements to generate the slot machine licensee’s annual financial report;
(d) Include a compliance audit certificate; and
(e) Be submitted pursuant to subsection 61D-8.002(5), F.A.C., and Section 550.125, F.S.
(2) The annual financial reports shall be signed by the chief executive officer and the chief gaming executive as defined in subsection 61D-14.015(2), F.A.C., and the financial vice president, treasurer, or controller of the slot machine licensee attesting that they have read the report and that the information contained in the report is accurate and complete to the best of their knowledge.
(3) The annual financial report required by this section shall include a separate explanation of any differences between the financial statements in the slot machine licensee’s annual financial report and the cumulative monthly remittance reports which shall disclose any adjustments to:
(a) Revenues from the slot machines;
(b) Total costs and expenses; and
(c) Net income.
(4) Each slot machine licensee shall include in its annual financial report:
(a) Any opinion or report on the slot machine licensee’s internal control procedures issued by its independent certified public accountant;
(b) An opinion or report expressing that the slot machine licensee has in all material respects, during the period covered by the examination, followed the system of internal accounting controls on file with the division and, if the slot machine licensee has materially deviated from the system of internal accounting controls on file with the division in any respect, the report shall:
1. Enumerate deviations and any areas of the system no longer considered effective;
2, Make recommendations regarding improvements in the system of internal accounting control; and
3. Detail all corrective actions taken to address deviations referenced in subparagraph (4)(b)1.
(5) The licensee shall file a report with the division within 48 hours of when:
(a) An independent Florida certified public accountant who was previously engaged as the principal accountant to audit the licensee’s financial statements resigns or is dismissed as the licensee’s principal accountant. The report shall list the name and business address of the certified public accountant and the date of such resignation or dismissal, and any pertinent reason for the action; or
(b) A new independent certified public accountant is engaged as principal accountant, such event occurs, setting forth the name and business address of the certified public accountant and the date of such resignation, dismissal, or engagement. The report shall list the name and business address of the new certified public accountant and the date of engagement.
(6) Any adjustments resulting from the annual audit shall be recorded in the accounting records of the year to which the adjustment relates. In the event the adjustments were not reflected in the licensees’ annual report, a revised annual report shall be required from the slot machine licensee within 30 days.
(7) Slot machine licensees shall report to the division details of any loans, borrowings, installment contracts, guarantees, leases, or capital contributions with a value of over $25,000 per year no later than 10 days after the end of the month in which the transaction or event occurs.
Rulemaking Specific Authority 551.103(1), 551.122 FS. Law Implemented 551.103(1)(d), (e), (g) FS. History–New 6-25-06, Amended_______.
(Substantial rewording of Rule 61D-14.086 follows. See Florida Administrative Code for present text.)
61D-14.086 Annual Compliance Audit and Summary Report of Compliance.
(1) In addition to the audit required by Rule 61D-14.082, F.A.C., each slot machine licensee shall:
(a) File an audit report to comply with the requirements of Section 551.104(8), F.S., which shall:
1. Contain recommendations of all findings and observations made by the slot licensee’s internal audit function referenced in paragraph 61D-14.015(2)(f), F.A.C.
2. Respond to the recommendations of all findings with a schedule for compliance.
(b) File a report required pursuant to Section 551.104(4)(1), F.S. The report shall provide:
1. A summary of the number of procurements accomplished and the number awarded to minority businesses.
2. A summary of new employees hired during the preceding year and the number of employees from the state and the number of minority new employees.
3. The number of new construction service contracts awarded and, of that number, the number awarded to minority construction firms.
4. Certification that the licensee’s equal employment opportunity requires that all positions of employment be offered strictly on a nondiscriminatory basis meeting all state and federal equal opportunity employment requirements.
5. Certification that training for employees on responsible gaming and working with a compulsive or addictive gambling prevention program to further its purposes as defined in Section 551.118, F.S., has been provided, which shall include:
a. The date(s) of the last training;
b. The total number of employees at the facility as of the end of the reporting period; and
c. The number of those employees who received training on responsible gaming and compulsive or addictive gambling prevention during the reporting period.
(2) All reports are due no later than July 31 of each year and shall represent a report for July 1 through June 30 of the prior year.
Rulemaking Specific Authority 551.103(1), 551.122 FS. Law Implemented 551.103(1)(d), (g), 551.104(8) FS. History–New 6-25-06, Amended________
61D-14.090 Prohibited Acts.
(1) through (2) No change.
(3) No person shall engage in conduct that is a violation of the slot machine licensee’s drug-free work place policy.
Rulemaking Specific Authority 551.103(1), 551.122 FS. Law Implemented 551.103(1)(d), (e), (g), (h), (i), (2), (3), (4)(a), 551.104(4)(i), 551.112 FS. History–New 6-25-06, Amended________.
61D-14.200 Educational or Training Facilities.
(1) The following entities, upon division approval, may be permitted to have slot machines for educational or training purposes:
(a) Certified educational facilities;
(b) Florida Department of Law Enforcement; and
(c) The Department of Business and Professional Regulation.
(2) Certified educational facilities shall:
(a) Be licensed under Rule 61D-14.203, F.A.C., prior to:
1. Enrolling any student for slot machine maintenance or operations courses;
2. Offering any course concerning slot machine maintenance or operations; and
3. Conducting any business whatsoever with a slot machine licensee or applicant for a slot machine license, its employees, or agents.
(b) Submit written certification from the Florida Department of Education that it recognizes the applicant as a certified educational facility;
(c) Use only slot machine equipment and components (including software) verified by the division for instructional, training, or demonstration purposes;
(d) Follow Rules 61D-14.096, 61D-14.097, and 61D-14.098, F.A.C., regarding the shipment of slot machines or slot machine components into or out of the certified educational facility;
(e) Establish a slot machine training area that is:
1. Segregated from all other training or classroom areas;
2. Enclosed by walls from floor to ceiling;
3. Secured from all unauthorized access;
4. Secured through the use of a lock and key or similar entry control system to which only personnel holding a slot machine occupational license have access; and
5. Used exclusively for slot machine educational and training purposes.
(f) Be licensed pursuant to Rules 61D-14.006 and 61D-14.203, F.A.C.;
(g) Have filed with the division a set of written internal controls that include:
1. Administrative controls providing for the acquisition and qualification of students receiving training;
2. Requirements for slot machine training students to receive at least one block of instruction and written testing on Chapter 551, F.S., and Chapter 61D-14, F.A.C.;
3. Requirements for written certification of acknowledgement from each student that he or she understands that the slot machines are not to be used for wagering, betting, gaming, or similar activity;
4. Procedures to authorize and control access to the slot machine training area during class and non-class time periods;
5. Requirement of a statement signed by the certified educational facility chief administrator attesting that the internal controls conform to the requirements of Chapter 551, F.S., and Chapter 61D-14, F.A.C.; and
6. A requirement that all books, records, and documents (including student records) be maintained pursuant to Rule 61D-14.080, F.A.C.
(h) Require all personnel employed or under contract with the certified educational institution who are associated with access, instruction activity, or the operation of the slot machine training area to obtain licensure pursuant to Rule 61D-14.005, F.A.C.
(3) The division shall evaluate the certified educational institution’s internal controls and all amendments thereto for conformity with Chapter 551, F.S., and Chapter 61D-14, F.A.C.
(4) A current copy of the internal controls as approved by the division shall be maintained in:
(a) The chief administrator’s office;
(b) The security office, when one is provided; and
(c) The slot machine training area.
(5) The certified educational institution shall obtain approval from the division for any amendment to its internal controls prior to implementing any change thereto.
(6) Failure of the certified educational institution to comply with its internal controls is a violation of this section and may result in disciplinary action.
Rulemaking Authority 551.103(1), (2), (5), 551.109(2), 551.122 FS. Law Implemented 551.103(1)(a), (b), (d), (e), (g), (i), (2), 551.109(2)(a), (b), 551.122, 849.15(2) FS. History–New________.
61D-14.203 Certified Educational Facility License Application.
(1) The license requirements of this section apply to certified educational facilities intending to provide instruction for slot machine operation and maintenance.
(2) A license may be issued only to a certified educational facility license that is certified by the Florida Department of Education (FDOE) to provide educational instruction within the state of Florida.
(3) All requirements of Rule 61D-14.200, F.A.C., must be met by a certified educational facility prior to licensure.
(4) An application for a slot machine certified educational facility license shall be made on Form DBPR PMW-3422, Slot Machine Certified Educational Facility License Application, effective _______, adopted herein by reference, and can be obtained at www.myfloridalicense.com/dbpr/pmw or by contacting the Division of Pari-Mutuel Wagering at 1940 North Monroe Street, Tallahassee, Florida 32399-1035.
(5) The license application shall be filed under oath or affirmation by an officer, director, or manager who is authorized by the applicant educational institution to bind the applicant to the representations made in the license application.
(6) If the applicant intends to claim any public records exemption from the Florida public records law, Chapter 119, F.S., it shall indicate in its application the specific sections for which it claims an exemption and the basis for the exemption.
(7) Each application shall be filed with the division’s office located at 1940 North Monroe Street, Tallahassee, Florida 32399-1035.
(8) The division shall deny the application for a certified educational facility license if the application and its supporting documents fail to meet the requirements of Chapter 551, F.S., or Chapter 61D-14, F.A.C.
(9) A certified educational facility license shall be suspended or revoked if at any time during the period of licensure the facility is suspended or removed from the list of educational facilities certified by the FDOE.
(10) A certified educational facility license shall be suspended throughout the period of time that the facility is under suspension or similar discipline imposed by the FDOE.
Rulemaking Authority 550.0251(2), 551.103(1), 551.109(2), 551.122 FS. Law Implemented 550.0251(2), 551.103(1)(a), (b), (d), (e), (g), (i), (2), 551.107(4)(a), 551.109(2)(a), (b) FS. History–New________.