Notice of Proposed Rule

DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION
Division of Pari-Mutuel Wagering
RULE NO: RULE TITLE
61D-14: Pari-Mutuel Facility Slot Machine Operations
61D-14.001: General Definitions
61D-14.002: Application Requirements
61D-14.003: Renewal of Slot Machine Licenses
61D-14.004: Denial Criteria for Applications and Renewals
61D-14.005: Occupational License Requirements for Individual Persons
61D-14.006: Occupational License Application Requirements for Business Entities
61D-14.007: Business Occupational License Requirements for an Independent Testing Laboratory
61D-14.008: Occupational License Renewal Application
61D-14.009: Denial Criteria for Occupational License Application or Renewal
61D-14.010: Identification of the Occupational License Applicant
61D-14.011: Occupational License and Fingerprint Fees
61D-14.012: Change of Position, Place of Work, Name, or Address
61D-14.013: Pari-Mutuel Occupational License Transition Period Provisions
61D-14.014: Occupational Licensee Termination List
61D-14.015: Slot Machine Licensee Organizational Structure
61D-14.016: Operational Requirements
61D-14.017: Days and Hours of Operation
61D-14.018: State Office Space Requirements
61D-14.019: Compulsive or Addictive Gambling Prevention Program
61D-14.020: Excluded Persons
61D-14.021: Complimentary Services or Items
61D-14.022: Slot Machine Requirements
61D-14.023: Slot Machine Doors and Compartments
61D-14.024: Logic Compartment
61D-14.025: Currency Compartments
61D-14.026: Cabinet Wiring
61D-14.028: Printed Circuit Board (PCB) Identification
61D-14.029: Mechanical Devices Used for Displaying Game Outcomes
61D-14.030: Video Monitors/Touchscreens
61D-14.031: Bill Acceptors
61D-14.037: Games with Bonus Features, Multiple Win Lines, Prizes
61D-14.038: Percentage Payout and Odds
61D-14.039: Credit Redemption, Meter, Cancel Credit, and Taxation Reporting Limits
61D-14.040: Game Cycle, Payment of Credits by Ticket Printer, and Ticket Redemption
61D-14.041: Randomness Requirements and Game Play Auditing
61D-14.042: Accounting and Occurrence Meter Specifications
61D-14.043: Transaction Log, Accountability of Bills/Tickets, Bill Acceptor Recall, and Number of Last Plays Required
61D-14.044: Identification of Program Storage Media, and Slot Machine Technical Requirements
61D-14.046: Facility Based Monitoring System Functionality
61D-14.047: Facility Based Monitoring System and Computer Diagnostics
61D-14.048: Facility Based Monitoring System Required Reports
61D-14.050: Floor Plan
61D-14.051: Security Plan
61D-14.052: Electronic Identification and Access Control System
61D-14.053: Key Controls
61D-14.054: Surveillance Equipment
61D-14.055: Storage and Retrieval of Surveillance Recordings
61D-14.056: Security and Surveillance Logs
61D-14.058: Slot Machine Licensees System of Internal Controls
61D-14.059: Slot Machine Licensee Personnel
61D-14.060: Business Entities, Internal Controls and Personnel Records
61D-14.061: Slot Cash Storage Boxes
61D-14.063: Count Rooms
61D-14.065: Procedure for Slot Cash Storage Box Count
61D-14.067: Slot Booths and Change Machines
61D-14.069: Accounting and Security Records
61D-14.072: Cashier’s Cage, Satellite Cages, Vaults, and Accounting Controls
61D-14.073: Meter Readings
61D-14.074: Security Requirements, System Access, and Firewalls
61D-14.075: Jackpot and Credit Meter Payouts Not Paid Directly From the Slot Machine
61D-14.080: Retention, Storage and Destruction of Books, Records, and Documents
61D-14.081: Monthly Remittance Reports
61D-14.082: Annual Financial Report
61D-14.083: Compliance with Federal Reporting Requirements
61D-14.085: Records Regarding Ownership
61D-14.086: Annual Compliance Audit
61D-14.087: Response to Division Reports and Audits
61D-14.090: Prohibited Acts
PURPOSE AND EFFECT: The purpose and effect of the proposed rule will be to implement and interpret Florida Statutes that relate to rules regulating the conduct of slot machine operations at pari-mutuel racing facilities.
SUMMARY: The rules address the following subject matter areas: the method of applying for a slot machine license, technical requirements and qualifications for licenses, procedures to test and technically evaluate slot machines, verifying and accounting for revenues, auditing, collection of taxes and fees, procedures for bond, procedures regarding maintenance of records, 85% minimum payout, minimum security standards, approval process for facilities based computer systems, monthly reports, occupational licensing, renewal of occupational licenses, occupational license fees, fingerprint rules, posting of signage, office space requirements, the compulsive gambling program, the impact of slot machines on cardroom operations, or any other rules required for the implementation of Chapter 551, Florida Statutes.
SUMMARY OF ESTIMATED REGULATORY COSTS: No Statement of Estimated Regulatory Cost was prepared.
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), 551.122 FS.
LAW IMPLEMENTED: 551.103(1)(a), 551.103(1)(b), 551.103(1)(c), 551.103(1)(d), 551.103(1)(e), 551.103(1)(f), 551.103(1)(g), 551.103(1)(h), 551.103(1)(i), 551.103(2), 551.103(3), 551.103(4), 551.104(4), 551.104(4)(f), 551.104(4)(i), 551.104(8), 551.106(3), 551.107, 551.107(2)(b), 551.107(4)(a), 551.107(4)(b), 551.107(4)(d), 551.113(3), 551.114, 551.114(5), 551.117, 551.118, 551.118(1) FS.
IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE HELD AT THE TIME, DATE AND PLACE SHOWN BELOW(IF NOT REQUESTED, THIS HEARING WILL NOT BE HELD):
TIME AND DATE: 9:00 a.m. – 4:00 p.m., May 23, 2006.
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, Department of Business and Professional Regulation, 1940 North Monroe Street, Tallahassee, Florida 32399-1035.

THE FULL TEXT OF THE PROPOSED RULE IS:

61D-14.001 General Definitions.

The following words and terms, when used in these regulations, shall have the following meanings unless the context clearly indicates otherwise:

(1) “Affiliate” or “affiliated” means person(s) one of whom directly or indirectly has the power to control the other, or persons who are both controlled by a third party.

(2) "Asset number" means a unique number permanently affixed to a slot machine or a slot cash storage box by a slot machine licensee for purposes of tracking that slot machine or storage box.

(3) “Bill” means a piece of United States paper currency.

(4) “Credit” means a unit of entitlement for play of a slot machine game created by the conversion of bills, tickets, or vouchers when inserted into a slot machine.

(5)   “Currency” means the money of the United States that is designated as legal tender.

(6) “Custodian of Records” means the officer, director or employee of the slot machine who is designated as the employee responsible for records regarding the departments referenced in Rule 61D-14.015, F.A.C.  The custodian of records shall be responsible for the maintenance of all records of the department for which he or she is delegated responsibility.

(7) “Drop” means the total amount of bills, tickets, and vouchers received by a slot machine or collected by a device that collects such items.

(8)   “EPROM” means erasable programmable read only memory of a slot machine.

(9) “Facility Based Monitoring System” means a central site computer system that shall be accessible by the division and FDLE to which all slot machines at a gaming facility communicate for the purpose of auditing capacity, real-time information retrieval of the details of any financial event that occurs in the operation of a slot machine facility, door openings and closings, power failure, and disabling of slot machines.

(10) “F.A.C.” means the Florida Administrative Code.

(11) “FDLE” means the Florida Department of Law Enforcement.

(12) “Gaming day” means the sixteen hour period the slot machine gaming areas of a slot machine licensee are open pursuant to Section 551.116, Florida Statutes.

(13) “Jackpot” means any money, merchandise or thing of value to be paid to a patron as the result of a specific combination(s) of characters displayed on a slot machine that the slot machine is not capable to automatically pay out.

(14) “Play” means the making of a slot machine wager or the use of a free play award in lieu of a wager, the activation of the slot machine game by the patron, and an indication to the patron of the outcome of the wager.

(15) "Slot cash storage box" is a tamper-resistant container, used in slot machine gaming that provides storage for bills, tickets, and vouchers accepted by a device such as a slot machine or automated ticket redemption machine.

(16) “Ticket” means a receipt for credits printed by a slot machine or ticket issuing machine used for slot machine play or redeemed for cash by the slot machine licensee.

(17) “Voucher” means a receipt for cash or property which is issued at a cashier’s cage and that is inserted into a slot machine to initiate play. 

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 51.103(1)(a),(1)(b),(1)(d), (1)(e), (1)(g), (1)(i), 551.104(4) FS.

History – New _______.

61D-14.002 Application Requirements.

(1) Each application for a slot machine license filed by a pari-mutuel wagering permitholder shall include the following information on Form DBPR PMW-3400, Permitholder Application for Annual Slot Machine License, which is adopted and incorporated by Rule 61D-15.001, F.A.C.:

(a)  The full name of the applicant;

(b)  A list of all ownership interests of five percent or greater.  If a corporation, the name of the state in which incorporated and the names and addresses of the officers, directors, and shareholders holding five percent or more equity or, if a business entity other than a corporation, the names and addresses of the principals, partners, shareholders or any other person holding five percent or more equity;

(c)  The names and addresses of the ultimate equitable owners for a corporation or other business entity, if different from those provided under paragraph (b), unless;

1.  The securities of the corporation or entity are registered pursuant to Section 12 of the Securities Exchange Act of 1934, 15 United States Code Sections 78a-78kk;

2.  If such corporation or entity files with the United States Securities and Exchange Commission the reports required by Section 13 of the act above or if the securities of the corporation or entity are regularly traded on an established securities market in the United States;

(d) The names and addresses of any mortgagee of any pari-mutuel facility and any financial agreement between the parties including the names and addresses of the officers and directors of the mortgagee, and of those stockholders who hold more than five percent of the stock of the mortgagee.  If applicable, a mortgagee shall also file the same information for equitable owners under (c) if the mortgagee is a publicly traded company;

(e) For each individual listed in the application as an owner, partner, officer, or director:

1.     A complete set of fingerprints that have been taken by a law enforcement officer or division staff to allow for electronic submission to FDLE; and

2.     Form DBPR PMW 3460, Request for Release of Information and Authorization to Release Information, which is adopted and incorporated by Rule 61D-15.001, F.A.C., authorizing the division and FDLE to obtain any record held by a financial or public institution;

(f)    A security plan that is in compliance with the specifications sited in Rule 61D-14.051, F.A.C.;

(g)   A copy of the contracts required by Section 551.104(10), Florida Statutes;

(h)   Each applicant shall provide the name and address of the custodian of records for slot machine operations;

(i)    Each applicant shall disclose each permit to conduct pari-mutuel wagering that is issued to the applicant in which it has any ownership interest;

(j) Each applicant shall provide proof of a bond, in the amount of at least 2 million dollars ($2,000,000.00) payable to the Governor or his/her successor in office issued by a surety authorized to issue such a bond in the state of Florida.  The bond required by this section shall be conditioned to require faithful payment of all taxes, fees, or any other moneys payable under Chapter 551, Florida Statutes, and indicate whether it is renewable for successive license renewal periods and how many renewals are provided by the bond;

(k) Each applicant shall pay the non-refundable application fee upon the filing of the application as required by Section 551.106(1), Florida Statutes;

(l) Each applicant shall pay the non-refundable regulatory fee to fund the compulsive gambling program as required by Section 551.118, Florida Statutes;

(m) A copy of each policy required by Sections 551.104(4)(i) and 551.118, Florida Statutes, for the following:

1.  Creating opportunities to purchase from vendors in this state, including minority vendors;

2.  Creating opportunities for employment of residents of this state, including minority residents;

3.  Ensuring that opportunities for construction services are from minority contractors;

4.     Ensuring that opportunities for employment are offered on an equal, nondiscriminatory basis; and

5.     Training for employees on responsible gaming and working with a compulsive or addictive gambling treatment program as required by Section 551.118, Florida Statutes;

(n) Each applicant shall disclose all administrative, civil or criminal proceedings that have been initiated by any governmental agency or any other state or federal agency that would affect the license status of the applicant or any affiliate of the applicant pursuant to Sections 550.054 and 550.1815, Florida Statutes;

(o) Each applicant shall disclose all judgments entered as the result of any administrative, civil or criminal proceedings that have been initiated by any governmental agency or any other state or federal agency that would affect the license status of the applicant or any affiliate of the applicant pursuant to Sections 550.054 and 550.1815, Florida Statutes;

(p)   Internal control procedures required by Rule 61D-14.058, F.A.C.; and

(q)   The dates and hours of slot machine operations as specified in Rule 61D-14.017, F.A.C.

(2) The application shall be filed under oath by the applicant for a slot machine license.

(3) If the applicant is a business entity, the application shall be filed under oath by an officer, director or manager who is authorized by the applicant business entity to bind the applicant to the representations made in the license application.  The officer, director or manager signing the application of a business entity shall affirm under oath that he or she is authorized to sign on behalf of the business entity applying for the slot machine license.

(4)  If the applicant intends to claim any exemption from public records disclosure under Section 119.07, Florida Statutes, or any other exemption from public records disclosure provided by law, for any part of its application, it shall indicate in its application the specific sections for which it claims an exemption and the basis for the exemption.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented .551.103(1)(a), (1)(b), (1)(f),551.104(4), 551.118 FS.

History – New _______.

61D-14.003 Renewal of Slot Machine Licenses.

(1) Any slot machine license in effect shall be renewed by the division for the next succeeding license period upon proper application for renewal and payment of fees as required by Sections 551.106, Florida Statutes.

(2) The license period for a renewed slot machine license shall be 1 year, which shall be concurrent with the pari-mutuel wagering annual license issued pursuant to Section 550.01215, Florida Statutes.

(3) An application for a slot machine license renewal shall be filed with the division in conjunction with the filing of the annual application for a pari-mutuel wagering license pursuant to Section 550.01215 or Section 550.5251, Florida Statutes, by the pari-mutuel wagering permitholder.  Such application shall include any changes to any of the information set forth in Rule 61D-14.002, F.A.C., and identify any changes to internal controls that have not been previously approved by the division.

(4) Each renewal applicant shall provide certification of renewal of the bond required by Rule 61D-14.002(1)(j), F.A.C., or a new bond meeting the requirements of that section.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103(1)(a),(1)(b), 551.104(4), FS.

History – New _______.

61D-14.004 Denial Criteria for Applications and Renewals.

An application for a slot machine license or a renewal of a slot machine license shall be denied if a review of the application or the investigation of the applicant demonstrates any of the following:

(1) Failure to provide any document required by Rule 61D-14.002, F.A.C.;

(2) A referendum was not held in the county where the slot machine facility is to be operated which demonstrates that the majority of the electors voting on the referendum have approved the operation of slot machines within pari-mutuel facilities in that county and the county is authorized to hold such a referendum as specified in Section 23, Art. X of the State Constitution;

(3) The applicant is not a pari-mutuel wagering permitholder;

(4) Slot machine gaming will be conducted at an ineligible pari-mutuel wagering facility;

(5) The applicant has outstanding fines, or the applicant’s pari-mutuel wagering permit or license has been suspended or revoked, for noncompliance with Chapter 550, Florida Statutes;

(6) The applicant has outstanding fines, or has been suspended or revoked, for noncompliance with Chapter 551, Florida Statutes, or the application indicates slot machine operations shall be conducted in a manner that is not consistent with Chapter 551, Florida Statutes, or the rules contained in Rule 61D-14, F.A.C.;

(7) The applicant failed to conduct a full schedule of live racing or games as defined in Section 550.002(11), Florida Statutes.  In the event that the applicant did not conduct a full schedule of live racing or games, the applicant shall provide an affidavit setting forth the facts and circumstances for the applicant’s failure to have conducted a full schedule of live racing or games in the previous racing or jai alai season;

(8) The applicant failed to submit a security plan in accordance with Rule 61D-14.051, F.A.C., or if an application for renewal fails to report any changes to the applicant’s previously approved plan;

(9) The applicant has failed to reveal any fact mandatory to the application for licensure, or has supplied information that is untrue or misleading as to a mandatory fact pertaining to the licensure criteria; or

(10) A conviction, as specified in Section 550.1815 or 551.107(6)(a), Florida Statutes, of the applicant or of any person referenced in that section required to be licensed of any disqualifying offense listed in Section 550.1815, Florida Statutes.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103(1)(a), (1)(b), (1)(i), 551.104(4), 551.117, 551.118(1), FS. 

History – New _______.

61D-14.005 Occupational License Requirements for Individual Persons.

(1) The following slot machine occupational license requirements apply to individual persons having access to the designated slot machine area or who may be granted access to the slot machine area by reason of the positions they hold:

(a)  Professional Employee Occupational License - An individual seeking a license as an employee of a slot machine facility who will be a security employee or hold a position as the head of a department referenced in Rule 61D-14.015, F.A.C., or a supervisor of employees of the slot machine licensee shall apply for a professional employee occupational license;

(b)   General Employee Occupational License - An individual seeking a license as an employee of a slot machine facility with no management or supervisory authority related to the slot machine licensee’s facility or employees shall apply for a general employee occupational license; and

(c)  Business Employee Occupational License - An individual seeking a license as an employee of any person or entity providing slot machine related services as referenced in Section 551.107(2)(a)3, Florida Statutes, to a slot machine licensee, who may be granted access to slot machine areas of a slot machine licensee due to their employment, shall apply for a business employee occupational license.

(2) As part of the initial application or renewal for a slot machine occupational license provided in Section 551.107, Florida Statutes, an applicant shall submit the following information under oath on Form DBPR PMW-3410, Slot Machine Employee Occupational License Application, which is adopted and incorporated by Rule 61D-15.001, F.A.C.:

(a) Name, including any prior names, aliases, maiden name or nicknames;

(b) Date of birth;

(c) Current physical and mailing address, a mailing address alone shall not be sufficient unless is also the applicant’s physical address;

(d) Social security number;

(e) Telephone number of current place of employment and home;

(f)    The applicant’s marital status and the names of the applicant’s spouse, children, siblings, grandchildren, the applicant’s parents and any other relative over the age of 21 living in the same household as the applicant;

(g) Disclosure of other jurisdictions in which the applicant holds, has held, or is applying for a gaming license including:

1.     Any license, permit or registry required in order to participate in any legal gaming operation; and

2.     Any denial, suspension or revocation of a license, permit or certification issued by any governmental agency; and

(h)   Any administrative, civil or criminal proceedings or any investigations known to the applicant that have been initiated by any governmental agency or any other state or federal agency that could affect the license status of the applicant in that jurisdiction or any judgment entered as the result of any such proceeding.

(3)   Every applicant for a slot machine occupational license pursuant to (1)(a) and (1)(c) shall disclose in his or her application:

(a)   Any affiliation of the applicant with a slot machine licensee or with companies controlling the slot machine licensee and the position he or she occupies with the same or his interest in said entity;

(b)   Any affiliation of the applicant with a business slot machine occupational licensee or companies controlling the business slot machine occupational licensee entity, and the position that he/she occupies with or his/her interest in said entity;

(c)   An employment history including:

1.     All gaming-related employment; and

2.     Any non-gaming employment for the previous ten years;

(d)   Education and training experience in management or gaming; and 

(e)   A release signed by the individual authorizing the division and FDLE to obtain any record held by a financial or public institution.

(4) Every initial application for a slot machine occupational license shall include:

(a)   A duly completed original Form DBPR PMW-3410, Slot Machine Employee Occupational License Application, which is adopted and incorporated by Rule 61D-15.001, F.A.C., in accordance with (3);

(b)   The documents to identify applicant, as provided in Rule 61D-14.010, F.A.C.;

(c)  The electronic submission of fingerprints of the applicant taken by division staff that shall be submitted for state and federal regulatory inquiry purposes; and

(d) The slot machine occupational license and fingerprint fees to be paid as provided in Rule 61D-14.011, F.A.C.

(5)   In the event the division determines that the licensee has applied for multiple positions that have been determined as incompatible functions as set forth in the internal controls of the employing slot machine licensee under Rule 61D-14.015(1)(b), F.A.C., the licensee shall be informed in writing and allowed to amend the application to select the position of his or her preference.

(6)  If the applicant intends to claim any exemption from public records disclosure under Section 119.07, Florida Statutes, or any other exemption from public records disclosure provided by law, for any part of its application, 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 the slot machine licensee’s facility or to the division at 1940 North Monroe Street, Tallahassee, Florida 32399-1035.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103(1)(b), 551.107(4)(a), FS.

History – New _______.

61D-14.006 Occupational License Application Requirements for Business Entities.

(1) No business entity, including a sole proprietorship, shall manage, oversee, or provide services for slot machine operations or provide services, products or goods to a slot machine licensee unless the entity is licensed by the division as a slot machine business entity occupational licensee.  The slot machine occupational license requirements of this section apply to any business entities as follows:

(a)   A business entity that acts as a slot machine management company, slot machine manufacturer or distributor, or sells products, services or goods to a slot machine licensee, or whose employees may be granted access to the designated slot machine area by reason of the employment position they hold with the business entity shall apply for a business entity occupational license; and

(b)   Business entities that do not supply slot machine related goods or services are not required to hold a business occupational license.  However, the slot machine licensee shall be required to maintain a list of employees of such a business who may occasionally require incidental access to slot machine gaming areas in its security plan referenced in Rule 61D-14.051, F.A.C.

(2) An application for a business slot machine occupational license shall be made on Form DBPR PMW-3420, Slot Machine Business Entity Occupational License Application, which is adopted and incorporated by Rule 61D-15.001, F.A.C. 

(3) Failure to include the following information as required by Form DBPR PMW-3420, Slot Machine Business Entity Occupational License Application, which is adopted and incorporated by Rule 61D-15.001, F.A.C., shall constitute grounds to deny the incomplete license application:

(a) The name of the business, including “doing business as” (d/b/a) names or fictitious names;

(b) The business Federal Employer Identification Number or, for sole proprietors, a social security number;

(c)  Whether the business is a sole proprietorship, corporation, estate, trust, partnership, or if not one of the foregoing, a deion of the business entities ownership and management structure;

(d)  Whether the applicant is seeking a one or three-year license;

(e)  A check or money order for the applicable business license fee as provided in Rule 61D-14.011, F.A.C.;

(f)  The physical and mailing address(es), including the country if not the United States of America;

(g)  The name and title of a contact person working for the business, including a primary telephone number, an alternate telephone number, and a primary e-mail address;

(h)  A list of all officers, directors, or managers of the business including:

1.     A set of fingerprints that have been taken by a law enforcement officer or division staff to allow for electronic submission to FDLE; and

2.     A release signed by the individual authorizing the division and FDLE to obtain any record held by a financial and public institution.

(i)  The name, title, and job deion of each employee who is required to access any area of a slot machine licensee’s facility;

(j)  Disclosure of other jurisdictions in which the applicant holds, has held, or is applying for a gaming license including:

1.     Any license, permit or registry required in order to participate in any legal gaming operation; and

2.     Any denial, suspension or revocation of a license, permit or certification issued by any governmental agency;

(k)  Disclosure of whether the applicant has had a gaming license in another jurisdiction suspended, revoked or denied, or whether there are administrative, civil, or criminal proceedings in any other jurisdiction that could result in the imposition of any suspension, revocation or denial in that jurisdiction.  Such disclosure shall include any license which has been relinquished in lieu of such prosecution;

(l)  A deion of the services, products or goods which the business intends to provide;

(m) If the applicant is a corporation, the application shall also disclose:

1.     The state in which the applicant is incorporated;

2.     Disclosure of whether the corporation has ever been convicted of a crime, and a listing of those offenses;

3.     A copy of the corporation’s registration to do business in the state of Florida;

4.     The name of any person authorized to accept service of process for administrative, civil or criminal proceedings in the state of Florida;

5.     A complete listing of any subsidiaries of the corporation; and

6.     A compete listing of any other corporations holding an ownership interest in the applicant corporation, including any officers, directors, managers or ownership interest in such a company holding an interest in the applicant; and

(n)     A list of slot machine licensees to whom the applicant intends to provide services, products or goods.

(4) If the applicant is a business entity, the business occupational license application shall be filed under oath by an officer, director or manager who is authorized by the applicant business entity to bind the applicant to the representations made in the license application. 

(5) An applicant for a license as a manufacturer or distributor of slot machines, or any equipment necessary for the operation of slot machines, shall include with its application an affidavit attesting that the applicant, its officers, directors, or employees have no ownership or financial interest in a slot machine licensee or any business owned by a slot machine licensee. 

(6)  If the applicant intends to claim any exemption from public records disclosure under Section 119.07, Florida Statutes, or any other exemption from public records disclosure provided by law, for any part of its application, 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 the slot machine licensee’s facility or to the division at 1940 North Monroe Street, Tallahassee, Florida 32399-1035.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103(1)(a), (1)(b, 551.107(4)(a), FS.

History – New _______.

61D-14.007 Business Occupational License Requirements for an Independent Testing Laboratory.

(1)   In addition to the requirements of Rule 61D-14.006, F.A.C., an applicant for a business occupational license as an independent testing laboratory to test and technically evaluate slot machines, or facility based computer systems of a slot machine licensee shall meet the following criteria:

(a) The applicant has submitted proof of current licensure, certification to test, or has a current contract in good standing with a gaming regulator in at least five jurisdictions in which electronic gaming devices are authorized;

(b) No contract held by the applicant with a state or other gaming jurisdiction has been cancelled, suspended, or not renewed in any way for failure to provide adequate testing of slot machines or facility-based operating systems, or other similar system for control of slot machine gaming; and

(c)   No independent testing laboratory or its officers, directors, managers, or owner shall own any interest in the following licensees, nor shall any of the following licensees own any interest in an independent testing laboratory:

1.     A slot machine licensee; and

2.     A manufacturer or distributor of slot machines, slot machine software, or any other part of a slot machine.

(2)   An applicant for a business occupational license as an independent testing laboratory or renewal of such a license shall identify in its application all persons employed or contracted by the independent laboratory that will test slot machines for compliance with Chapter 551, Florida Statutes, and Rule 61D-14, F.A.C.  The application shall include each person’s name, job title and engineering license number.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103(1)(a), (1)(b), (1)(c), 551.107, FS.

History – New _______.

61D-14.008 Occupational License Renewal Application.

(1) The application for renewal of a slot machine occupational license shall be made under oath and include:

(a)  A duly completed original Form DBPR PMW-3410, Slot Machine Employee Occupational License Application or 3420, Slot Machine Business Entity Occupational License Application, which are adopted and incorporated by Rule 61D-15.001, F.A.C.; and

(b)  The fees to be paid as provided in Rule 61D-14.011, F.A.C.

(2) Slot machine occupational licenses shall be issued by the division for a period of one year or three years when accompanied by the corresponding license fee, beginning on October 1 of each year and expiring on September 30 of the following year. 

(3) The completed renewal application shall be filed with and received by the division between August 2nd through September 30th of the year the license is due to expire.

(4) The license for any person who fails to submit a completed renewal application in accordance with this section shall expire on the expiration date.

(5) Any person whose slot machine occupational license has expired and who seeks a subsequent slot machine occupational license shall be considered an initial slot machine occupational license applicant.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(a), (1)(b),551.107(4)(a), FS.

History – New _______.

61D-14.009 Denial Criteria for Occupational License Application or Renewal.

The division shall deny the application for a slot machine occupational license if a review of the application or the investigation of the applicant demonstrates any of the following:

(1) The applicant fails to provide any document required by Rule 61D-14.005 or 61D-14.006, F.A.C.;

(2) The applicant is not at least 21 years old;

(3) The applicant has failed to pay the license fee or fingerprint fees;

(4) The applicant has unpaid fines from any gaming jurisdiction or holds any gaming license that is currently suspended, held a gaming license that has been suspended on multiple occasions resulting in a total time suspended of one year or more, or that has been revoked or relinquished in lieu of prosecution for a criminal, civil or administrative offense;

(5) The applicant is an employee of the division;

(6) The applicant is a manufacturer or distributor of slot machines who has or holds a direct or indirect ownership or financial interest in a business owned by a slot machine licensee; and

(7) The applicant is a business entity with an officer, director, manager, shareholder or other person with the ability to control the actions of the applicant who:

(a) Has been convicted of any disqualifying offense under Section 551.107(6), Florida Statutes; or

(b) Has unpaid fines from any gaming jurisdiction or holds any gaming license that is currently suspended, held a gaming license that has been suspended on multiple occasions, or that has been revoked or relinquished in lieu of prosecution for a criminal, civil or administrative offense.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103(1)(a), (1)(b), 551.107(4)(a), (4)(b) FS.

History – New _______.

61D-14.010 Identification of the Occupational License Applicant.

Every applicant for a professional, general or business employee slot machine occupational license shall establish his/her identity in one of the following ways:

(1) Providing an original or copy of one (1) of the following documents:

(a) A current United States of America passport;

(b) A Certificate of United States citizenship, or Certificate of Naturalization issued by the United States Department of Justice, Immigration and Customs Enforcement (ICE); or

(c) A current permanent resident card issued by the ICE, which contains a photograph; or

(2) Providing an original or copy of any two (2) of the following documents:

(a) Certified copy of the birth certificate of the applicant;

(b) Current driver's license containing a photograph, name, signature, date of birth, sex, height, color of eyes and address of the applicant;

(c) Current identification card issued by the Federal Department of Defense to persons who serve in the United States military or their dependents containing a photograph, name, date of birth, height, and color of eyes of the applicant;

(d) Current student identification card which contains a photograph, student number or social security number, date of expiration, seal or logo of the issuing institution, and the signature of the applicant;

(e) Current country identification card issued by the federal government or government issued identification credential which contains a photograph, the name, date of birth, sex, height, color of eyes and address of the applicant;

(f) Current identification card issued by the Immigration and Naturalization Service containing a photograph or information about the name, date of birth, sex, height, color of eyes and address of the applicant; or

(g) A current foreign passport that is recognized by the ICE and contains a photograph of the applicant.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103(1)(a), (1)(b), 551.107(4)(a), (4)(d), FS.

History – New _______.

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 $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 $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 (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 (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 (3) and (4) above to the division.

(6)  An applicant for a business occupational license, including those individuals employed by the business entity, shall provide a check or money order for payment of fingerprint fees with their application for a slot machine occupational license.  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), Florida Statutes, and Rule 11C-6.010(5), F.A.C. 

(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.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(a), (1)(b),(1)(g), 551.107(4)(a), (4)(d), FS.

History – New _______.

61D-14.012 Change of Position, Place of Work, Name, or Address.

(1) In the event a person holding a slot machine general employee occupational license changes job duties or functions, or employment to a position requiring a slot machine professional occupational license or slot machine business employee occupational license, the licensee shall apply to upgrade the license by completing Form DBPR PMW-3170, which is adopted and incorporated by Rule 61D-15.001, F.A.C., prior to performing the professional-level duties.

(2) Any person employed by a slot machine licensee or slot machine business entity licensee in a position that requires a slot machine occupational license shall notify the division in writing of any change of employment to a different slot machine licensee or to any business entity licensed pursuant to Rule 61D-14.006, F.A.C., prior to commencing the new employment.

(3) Any person or entity holding a slot machine occupational license shall inform the division in writing of any change in their name or their physical or mailing address within seven days of the date the name or address changed.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(a), (1)(b),(1)(g), 551.107(4)(a), FS.

History – New _______.

61D-14.013 Pari-Mutuel Occupational License Transition Period Provisions.

(1) Any person who on the effective date of these regulations possesses a pari-mutuel wagering occupational license and is required by Section 551.107(2), Florida Statutes, to obtain a slot machine occupational license, shall file an initial application for a slot machine license within thirty days following the effective date of these regulations.  Such a person, except for a person who obtained a license through the waiver process of Section 550.105(5)(c), Florida Statutes, and Rule 61D-5.006, F.A.C., is authorized to work in the slot machine area of a slot machine licensee until such time as the initial application for a slot machine occupational license has been granted or denied.

(2) All rule provisions of Rule 61D-14, F.A.C., shall apply to any person who is authorized to work in the slot machine area under their current pari-mutuel wagering license as provided in this section.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(a), (1)(b), 551.107(2)(b), FS.

History – New _______.

61D-14.014 Occupational Licensee Termination List.

Prior to beginning slot machine gaming, a slot machine licensee shall provide a roster of all slot machine employees to the division.  Thereafter, the slot machine licensee shall submit a weekly roster change list to the division indicating all new slot machine employees and all slot machine employees whose employment has been terminated regardless of whether or not the employee’s termination was voluntary.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(a), (1)(b), (1)(g),551.107(4)(a), FS.

History – New _______.

61D-14.015 Slot Machine Licensee Organizational Structure.

(1) Each slot machine licensee shall maintain an organizational structure which meets the following criteria designed to preserve the integrity of the eligible facility operation. Provided the criteria of this section are met, each slot machine licensee shall be permitted to tailor its organizational structure to meet the needs of its own particular management style. The proposed table of organization of each slot machine licensee shall be approved by the division and shall provide for the following criteria:

(a) A list identifying management and supervisory personnel holding professional occupational licenses who will be held accountable for actions or omissions within their area of responsibility; and

(b) Supervisory positions which permit the authorization or supervision of necessary transactions at all relevant times.

(2) Each slot machine licensee shall designate a chief gaming executive.  The chief gaming executive shall be the person located at the slot machine licensee’s facility who is responsible for the daily conduct of slot machine gaming including the direct or indirect supervision of the departments required by this section regardless of the slot machine licensee's form of business association or the particular title which that person holds.

(3)   In addition to satisfying the requirements of (1) above, each slot machine licensee’s organizational structure shall include, at a minimum, the following mandatory departments and supervisory positions:

(a) The Accounting Department is responsible for verifying financial transactions, and reviewing and controlling accounting forms and data.  The function shall include, but is not limited to, a daily audit of the slot machine gaming documentation, a daily audit of the gaming facility cage accountability, a daily audit of the vault accountability, document control and signature verification;

(b) The Cashier’s Cage is responsible for the following:

1.     The custody of coin, currency, documents, and records associated with the operation of a cashier’s cage;

2.     The receipt, distribution, and redemption of any tickets and vouchers; and

3.     The segregation of funds related to slot machine activity from funds related to pari-mutuel activity;

(c) The Surveillance Department shall be independent of all aspects of gaming facility operations and shall be supervised by a gaming facility employee holding a professional occupational license assigned the position of Director of Surveillance. The Director of Surveillance shall report to the slot machine licensee, or to a corporate executive outside the immediate property management team, or to another independent reporting line.  The Surveillance Department is responsible for the covert monitoring of:

1. The conduct and operation of slot machines;

2. The conduct and operation of the cashier’s cage;

3. The collection and count of the slot drop;

4. The movement of any cash storage box within the facility, any bills, tickets, or vouchers removed from a slot machine, or the movement of cash while being transported to a count room or armored car bay;

5.     Detection and recording of cheating, theft, embezzlement, and other illegal activities in the gaming facility; and

6.     Detection of the presence in the gaming facility of any person who is required to be excluded pursuant to voluntary and involuntary exclusions;

 (d) The Security Department is responsible for the overall security of the facility including the following:

1. The physical safety of patrons and employees in the slot machine licensee’s facility;

2. The physical safeguarding of assets transported to, from, or through the facility;

3. The protection of patrons, employees and gaming facility property from illegal activity;

4. The detainment of individuals when there is probable cause to believe that they are in violation of the law or gaming regulations;

5. The recordation of any and all suspicious activity including the date, time, nature of the incident, persons involved in the incident, and the assigned Security Department personnel; and

6. The identification and removal of any person who is required to be excluded pursuant to voluntary or involuntary exclusion requirements;

 (e) The Slot Department is responsible for all aspects of the operation of the slot machines and shall be supervised by a management-level employee manager or assistant manager;

(f) The Internal Audit Function of a slot machine licensee shall be through a separate or through outsourcing of this function. The Internal Audit Function shall be responsible for the following:

1.     Reviewing and appraising the adequacy of internal controls;

2.     Ensuring compliance with internal controls through observations and review of accounting documentation;

3.     Reporting instances of non-compliance with the system of internal controls;

4.     Reporting of any material weaknesses in the system of internal controls disclosed by an audit conducted under generally accepted accounting principles;

5.     Recommending improvements in the system of internal controls;

6.     Creating audit reports that shall include the following information:

A. Audit objectives;

B. Audit procedures and scope;

C. Findings and conclusions;

D. Recommendations, if applicable; and

E. Management's response; and

7.     Internal audit findings shall be reported to management. Management shall be required to respond to internal audit findings stating corrective measures to be taken to avoid recurrence of the audit exception. Such management responses shall be included in the internal audit report that shall be delivered to management, the audit committee, the division upon request, or any other entity designated by the slot machine licensee; and

(g) The Management Information Systems (MIS) Department is responsible for the quality, reliability, and accuracy of all computer systems used in the operation and shall be responsible for and maintenance of:

1.     Access codes and other data-related security controls used to ensure authorized access to computers and the system-wide reliability of data;

2.     Computer tapes, disks, or other electronic storage media containing data relevant to gaming facility operations; and

3.     Computer hardware, communications equipment and software used in the conduct of gaming facility operations.

(4)   No person shall be assigned to duties of more than one department listed in (3).  Further, no person within a department shall be assigned job duties that would enable such a person to both perpetrate an error or commit fraud and conceal evidence of the error or fraud in the course of their duties.

(5)   The slot machine licensee shall designate a custodian of records for each department referenced in (3).  The slot machine licensee shall provide a written notification to the division and FDLE listing the custodian of records for each department.  The slot machine licensee shall update the list whenever the employee designated as the custodian of records is changed.

Specific Authority 551.103(1), 551.122 FS. 

Law Implemented 551.103 (1)(a), (1)(b) (1)(d), (1)(e),,(1)(i), FS.

History – New _______.

61D-14.016 Operational Requirements.

(1) Prior to commencing slot machine gaming at its facility, a slot machine licensee shall file a certification from a licensed independent testing laboratory that verifies the following:

(a) The facilities based computer system which the slot machine licensee will use for operation and accounting functions of the slot machine facility is in full compliance with the requirements of Chapter 551, Florida Statutes, and the Rule 61D-14, F.A.C., and

(b) That each slot machine shall operate in compliance with the requirements of Chapter 551, Florida Statutes, and all rules setting forth requirements for slot machines  contained in Rule 61D-14, F.A.C.

 (2) The slot machine licensee shall maintain an office on the premises of the eligible facility.

(3) The slot machine licensee shall maintain all records required by Chapter 551, Florida Statutes, and all rules setting forth requirements for slot machines contained in Rule 61D-14, F.A.C., at the slot machine facility that at all times reflect the current ownership and, if a corporation, of every class of security issued by the slot machine licensee that shall be available for inspection by the division or FDLE at all reasonable times without notice.

(4) The slot machine licensee shall provide written certification to the division and FDLE from each bank, financial institution, funds transmitter or other entity that handles or facilitates the slot machine licensee’s financial operations, that each such entity will accept and comply with any administrative or investigative subpoena or request for production of records from the division or FDLE and shall make all books and records related to the slot machine licensee available for audit or review when required by the division or FDLE.

(5) The slot machine licensee shall post separate signage throughout the designated slot machine gaming areas providing notice of the following:

(a) Warning of the risks and dangers of gambling;

(b) Showing the odds of winning, which shall be updated quarterly and stated as either:

1.     The actual payout percentage for the facility based upon the previous quarter; or

2.     The average of the overall certified payout percentage for the machines currently offered for play;

(c) Informing of the toll-free number available to provide information and referral services regarding compulsive or problem gambling from the division’s compulsive gambling prevention program contractor; and

(d)   The minimum age to play required by Section 551.113(3), Florida Statutes.

(6) The slot machine licensee or its employees shall not allow a person who has been excluded from a slot machine facility by a final order of the division pursuant to Section 551.112, Florida Statutes, to enter the slot machine licensee’s facility.

(7)   No less than two weeks prior to a slot machine licensee opening its facility for slot machine play, the slot machine licensee shall contact the division and FDLE for a trial operation day to test slot machines, the facility based monitoring system, security systems, back up systems and employee training on internal controls.  The division and FDLE shall test for contingencies or situations that impact slot machine operations at the slot machine licensee’s facility. If the slot machine licensee’s systems do not function as required by Chapter 551, Florida Statutes, Rule 61D-14, F.A.C., and the internal controls submitted for compliance with the rules, the division shall provide the slot machine licensee with a written list of deficiencies.  The slot machine licensee shall advise the division and FDLE when those deficiencies have been addressed and the division and FDLE shall retest those systems to verify compliance.  A slot machine licensee shall not open its facility for slot machine play until the division acknowledges in writing that all deficiencies noticed by the division are resolved.

(8)   No slot machine or any part of the logic compartment referenced in Rule 61D-14.024, F.A.C., shall be removed from its location designated by the facility floor plan without prior written notification to the surveillance department, the division or FDLE.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(c),(1)(e), (1)(g), (1)(h) (1)(i), 551.113(3), 551.114, FS.

History – New _______.

61D-14.017 Days and Hours of Operation.

(1) Days and hours of slot machine operation shall be those set forth in the application or renewal of the slot machine licensee. Changes to days and hours of slot machine operation shall be submitted to the division 14 days prior to implementation.

(2)   For purposes of auditing, monitoring and regulatory compliance, a day shall be the 24 hour period that commences on the current calendar day at 6:00 a.m. and terminates at 5:59.59 a.m. the following calendar day. Slot machine licensees may choose to begin and end their gaming day at hours other than those specified in this section.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(d), (1)(e), FS.

History – New _______.

61D-14.018 State Office Space Requirements.

(1) There shall be, for the exclusive use of division and FDLE employees, office space at each facility for regulatory and law enforcement purposes. The slot machine licensee shall not have access to the designated space unless authorized by the division or FDLE and a division or FDLE representative is present.

(2) The Licensing/Compliance Room shall be at least 500 square feet in office area at each facility in order to station on-site division employees to facilitate the licensing process and provide workspace for compliance auditors, investigators, and other regulatory staff and meet the following minimum requirements:

(a)   Internet connectivity will be provided that has bandwidth equal or greater than 1Mb/s and at least 2 static, routable IP addresses;

(b) Connectivity to the facility based monitoring system to run slot activity reports and real time access as referenced in Rule 61D-14.048, F.A.C.;

(c) A segregated telephone communication system, which prohibits the licensee from accessing division calls, fax communication or email;

(d) A house telephone communication system and multiple handsets capable of communicating with facility security;

(e) Live-scan electronic fingerprinting equipment approved for use by FDLE as referenced in Section 551.107(7)(a), Florida Statutes;

(f)    A customer service counter for the acquisition of information from prospective applicants and to facilitate the licensing process;

(g) An electronic access badge system that records all entries on the facility’s security event log referenced in Rule 61D-14.052, F.A.C.;

(h) A security camera providing coverage of the room and entryway linked to the facility’s surveillance system referenced in Rule 61D-14.054, F.A.C.;

(i)    A security window or feed from the security camera that allows division employees in the Licensing/Compliance room to visually identify individuals attempting to access the room;

(j)    An intercom system that allows communication from the licensing counter to outside of the entry door that includes a buzzer entry system;

(k)  Adequate lighting, power outlets, and ventilation as provided in other office space in the slot facility; and

(l)    Four internal security radios capable of containing all facility security channel frequencies.

(3) The Secure Room space shall be at least 1,086 square feet at each facility in order to station FDLE and task force partners and shall meet the following minimum requirements:

(a) One bay area not less than 936 square feet (includes 80 square feet for a work station for real time video surveillance) to accommodate 7 special agents/analysts/task partners;

(b)   One office not less than 100 square feet;

(c)   One telecommunications closet not less than 50 square feet.  This closet shall have plywood installed to facilitate the installation of a T-1 circuit(s) for connectivity to FDLE’s and the division’s secure state network;

(d)     The secure monitoring room shall be accessible through a solid core door with locking mechanism that permits entry only by employees of the division and FDLE.  The office within the secure monitoring room shall be accessible through a solid core door only from the bay area;

(e)     The interior of the secure monitoring room shall not be visible to the public or to the slot machine licensee;

(f)      Access to the secure monitoring room shall be controlled by FDLE;

(g)   Switching capabilities to insure that all surveillance cameras are accessible to the monitors in the secure monitoring room;

(h)   Cabling and connecting media to accommodate telephone and communications media and computers; and

(i)    Eight internal security radios capable of containing all facility security channel frequencies.

(4)  The Interview/Detention Room shall be at least 100 square feet and shall include, a bench or other apparatus which is permanently affixed to the facility and to which the person in custody can be handcuffed.

(5) Ten parking spaces shall be provided adjacent to the facility, six which are marked for FDLE use and four marked for division use.

(6) The Licensing/Compliance Room, the Secure Room, and the Interview/Detention Room shall be contiguous or adjacent unless otherwise approved by the division.

(7)   The telephone and communication media systems required by this section shall be segregated so that the slot machine licensee is prohibited from accessing calls or communications made from and into the licensing/compliance and secure monitoring rooms.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(i),551.114(5), FS.

History – New _______.

61D-14.019 Compulsive or Addictive Gambling Prevention Program.

(1) A slot machine licensee shall work with a compulsive or addictive gambling prevention program and provide training for its employees on responsible gaming in accordance with the requirements of Sections 551.104(4)(i)5, and 551.118(1), Florida Statutes.  The compulsive gambling prevention program shall include, but is not limited to, the following elements:

(a) Identification of a program manager or other person responsible for ensuring that a program is implemented and administered by the slot machine licensee and monitored to maintain the minimum standards established by this rule;

(b) Printed materials to educate patrons about compulsive gambling and inform them of local and state wide resources available to compulsive gamblers and their families. The materials can include signs and posters located inside the licensed premises and brochures discussing compulsive gambling issues and sources of treatment and information. A plan shall also specify sources of the printed materials and proposed distribution methods;

(c) Completion of a log detailing employee names, dates, and training certifying that each employee required to obtain the training has done so within the time period specified by these regulations; and

(d) An annual follow-up training program to reinforce employee training.

(2) The employee training program shall include training and materials on the following topics:

(a) Characteristics and symptoms of compulsive gambling behavior;

(b) Identification of vulnerable populations, including women, low-income patrons, the elderly and persons who abuse drugs and alcohol;

(c) Techniques to be employed where a compulsive gambling problem is identified or suspected; and

(d) Assistance and referral programs, including specific resources and training on how to discuss compulsive gambling with a patron and give advice concerning access to available services.

(3)   Training shall be conducted within thirty (30) days of the employee's hire date. Certification of such training shall be maintained onsite in each employee’s personnel file.

(4) The program shall provide for notification to compulsive or addictive gamblers of the availability to request voluntary exclusion from the slot machine licensee’s facility.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(a), (1)(b),(1)(g),(1) (i), 551.104(4)(i),551.118(1), FS.

History – New _______.

61D-14.020 Excluded Persons.

(1)   Each slot machine licensee shall maintain a database of persons:

(a) Who the slot machine licensee has excluded from its facilities, including persons excluded as compulsive gamblers; and

(b)   Persons that have been excluded by a final order of the division.

(2)  A slot machine licensee database of excluded patrons shall include the following information for each excluded person:

(a) The full name and aliases, if known, of the person to be excluded;

(b) A deion of the person’s physical appearance, including height, weight, type, build, color of hair and eyes and other physical characteristics which would assist in the identification of the person;

(c) Date of birth;

(d) The date the person was excluded;

(e) If obtainable, a photograph, and the date of the photo or a photo taken by the eligible facility surveillance department; and

(f)    A brief deion of why the person has been excluded.

(3)   A slot machine licensee shall exclude or eject any person that has been placed in its exclusion database.

(4) If the slot machine licensee withholds winnings from any excluded person, such withheld winnings shall be included in the slot machine licensee’s revenues pursuant to Rule 61D-14.081(5), F.A.C. 

(5) Whenever an excluded person enters or attempts to enter, or is upon the premises of a slot machine licensee, the slot machine licensee’s agents or employees shall immediately inform the security department.  The security department shall:

(a) Immediately notify the division or FDLE of the presence of the excluded person in any area of the gaming establishment;

(b) Request such excluded person to not enter or if on the premises to immediately leave; and

(c) Notify the appropriate law enforcement agency and the division if such excluded person fails to comply with the request of the licensee, its agents or employees.

(6) Catering to a person excluded by a final order of the division is a violation of these rules.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103(1)(d), (1)(g), (1)(i),551.118 FS.

History – New _______.

61D-14.021 Complimentary Services or Items.

(1) Complimentary items or services offered directly or indirectly by a slot machine licensee shall not constitute “cash, cash equivalents, credits or prizes paid to winners of slot machine gaming” for the purpose of a deduction from slot revenues as referenced in Section 551.102(12), Florida Statutes, when calculating taxes due to the division. 

(2)   Any complimentary item that is redeemable for credits for slot machine play shall be presented at a cashier’s cage.  The cashier shall convert the complimentary item into a voucher, which shall only work in a slot machine.

(3)   Each slot machine licensee that offers complimentary services or items shall establish and maintain as part of its system of internal controls a monthly report including:

(a)   A deion of the services or items;

(b)   A deion of the program or promotion under which they were offered;

(c) The total cost of the services or items to the slot machine licensee, its affiliates, or third parties contracted for the provision of complimentary services or items; and

(d)   The total retail value of the services or items.

(4)   If complimentary services or items provided any person or entity have a total cost pursuant to (3)(c) or value pursuant to (3)(d) of $500 or more, the slot machine licensee shall establish and maintain as a part of its system of internal controls a log including the following:

(a) The name and address of the recipient;

(b) The method of verification of the identity of the recipient;

(c) The name(s) and occupational license number(s) of the issuer of the complimentary services or items, including affiliates, or third parties contracted for the provision of complimentary services or items;

(d) The type of complimentary service or item; and

(e) Date the complimentary services or items were provided.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(d),(1)(e), (1)(g), FS.

History – New _______.

61D-14.022 Slot Machine Requirements.

(1)  Slot machines offered for play by a slot machine licensee shall utilize a game services protocol, such as the Slot Accounting System (SAS), for transmission or tracking of financial data.

(2)  No slot machine game shall be certified for play in this state by a licensed independent test laboratory if it operates a program of play that replicates a game that is prohibited under Section 849.08, Florida Statutes, unless the slot machine game contains a player skill component and is not based on a banking game.

 (3) Prior to the sale or delivery of a slot machine for play in this state, a slot machine manufacturer shall provide certification in writing to the division from a licensed independent testing laboratory that each of the slot machines it intends to offer for sale in this state meet all criteria for operation contained in Chapter 551, Florida Statutes, and Rule 61D-14, F.A.C.  All testing of slot machines to be offered for play in this state is the responsibility of the manufacturer.

(4)   Electrical testing of slot machines shall be performed by a licensed independent test laboratory.  Electrical testing is the responsibility of the manufacturer, purchaser, and operator of the equipment. A slot machine shall be able to withstand the following tests, resuming game play without operator intervention:

(a)   Random Number Generator. The random number generator and random selection process shall not be subject to influences from outside the device;

(b)   Electro-Magnetic Interference. Gaming devices shall not create electronic noise that would affect the operation of neighboring machines or associated equipment;

(c)   Electro-Static Interference. Protection against static discharges requires that the machine’s conductive cabinets be grounded in such a way that static discharge energy shall not damage, or inhibit the operation of the electronics or other components within the gaming device. Gaming devices may exhibit temporary disruption when subjected to a significant electro-static discharge greater than human body discharge, but they shall exhibit a capacity to recover and complete any interrupted play without loss or corruption of any control or data information associated with the gaming device. The tests shall be conducted with a severity level of 27 kilovolt (KV) air discharge;

(d)   Radio Frequency Interference (RFI). Gaming devices shall not alter the slot machine’s operation by the application of RFI at a frequency range from twenty-seven (27) to one thousand (1000) megahertz (MHZ) with a field strength of three (3) volts per meter;

(e)   Magnetic Interference. Gaming devices shall not alter their operation due to magnetic interference; and

(f)    Liquid Spills. Liquid spills applied to the outside of a gaming device shall not alter the operation of the machine, the integrity of the material or information stored inside the cabinet, or the safety of the players operating the equipment. If liquids are spilled into a bill acceptor, the only degradation permitted is for the bill acceptor to reject all inputs or generate an error condition message.

(5)   A slot machine shall have an identification badge permanently affixed to the exterior of the cabinet by the manufacturer.  The badge shall include the following information:

(a)   The manufacturer;

(b)   A unique serial number;

(c)   The slot machine model number; and

(d)   The date of manufacture.

(6) The slot machine shall have a light located on top of the slot machine that automatically illuminates when a player attempts to redeem credits that the slot machine cannot automatically pay, or an error condition has occurred, or a ‘Call Attendant’ condition has been initiated by the player.  An audible alarm for ‘bar-top’ style games where multiple terminals share a common tower light is authorized for this requirement.

(7) An on/off switch that controls the electrical current shall be located in a place which is readily accessible within the interior of the slot machine, but positioned so that power cannot be disconnected from outside of the machine using the on/off switch. The on/off positions of the switch shall be labeled.

(8)  The slot machine’s operation shall not be altered, other than resets, by surges or dips of ± 10% of the supply voltage. It is acceptable for the equipment to reset provided no damage to the equipment or loss or corruption of data occurs.

(9)  Each slot machine shall be controlled by one or more microprocessors that are physically located within the individual slot machine cabinet in such a manner that the play of the game is controlled by the internal microprocessor(s).

(10)  For printer games, the printer shall be located in a locked area of the slot machine.  Ticket printers shall be interfaced in such a way as to allow the slot machine control program to interpret and act when the ticket printer is out of paper or low on paper, there is a printer jam or failure, or the printer is disconnected.

(11) The slot machine game shall lock-up if the sum of awards from the single play of a game is equal to or greater than $1,200 per 26 Code of Federal Regulations, Section 7.6021-1.  The lock-up condition shall require an attendant to clear the slot machine before the slot machine may be played again.

(12) Communication controller electronics, and components housing the communication control program that is used for communicating financial data, program information and security events to the facility based accounting and monitoring, ticket validation, facility based monitoring system and any other system used that would effect the integrity of slot machine gaming shall be housed in a secure locked compartment of the slot machine.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(c), (1)(d),(1)(h), (1)(i) FS.

History – New _______.

61D-14.023 Slot Machine Doors and Compartments.

The following requirements shall apply to the slot machine’s cabinetry. 

(1)   All external doors shall be locked and monitored by door access sensors, which shall have the ability to detect when a door is opened or moved from its fully closed and locked position and immediately:

(a)   Report the door opened event to the slot machine by way of an error; and

(b)   Notify the surveillance department of the door opening, which shall monitor and record all activities at that slot machine until such time as the incident has been satisfactorily resolved.

(2)   A log of compartment door openings and closings shall be maintained inside the locked compartment of the slot machine.  The log shall include the time and reason for the opening.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(c), (1)(e), (1)(i) FS.

History – New _______.

61D-14.024 Logic Compartment.

(1)   The logic compartment is a locked compartment within the cabinet area with its own locked door that is separate from any external door lock that houses critical electronic components, which would include central processing units and other electronic components involved in the operation and calculation or display of game play.

(2) Once a slot machine has been certified by a licensed independent laboratory, the division or FDLE shall apply evidence tape to all program storage media, both writable or non-writable, including EPROM, DVD, CD-ROM, and any other type of program storage devices, and logic compartments prior to the slot machine being offered for play.

(3) Any occupational licensee who observes a break in the security tape, or that security tape has been tampered with, fallen off, or has been removed from within the logic compartment shall immediately notify security and the slot machine shall be shut down.  Security shall notify the division or FDLE.  Such a slot machine shall not be offered for play until the division or FDLE has examined the slot machine and determined that there has been no tampering and that the slot machine is in compliance with Chapter 551, Florida Statutes, and Rule 61D-14, F.A.C.

(4)   A log of logic compartment door openings and closings shall be maintained inside a locked compartment of the slot machine.  The log shall include the time and reason for the opening.

Specific Authority 551.103(1), 551.122 FS. 

Law Implemented 551.103 (1)(c), (1)(i), FS.

History – New _______.

61D-14.025 Currency Compartments.

All currency compartments shall be locked separately from the main cabinet area and shall require a key that is different from the key required to open the main cabinet door. Currency compartments shall also meet the following requirements:

(1) The compartment shall be fitted with sensors that will allow the slot machine to immediately communicate the currency door open event or when the storage container has been removed;

(2)   Access to the currency storage area shall be through a locked relevant outer door plus one other door or lock, before the receptacle or currency can be removed; and

(3)   The bill stacker device shall have a “stacker full” sensor.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(c), (1)(d), (1)(e) ,(1)(g), (1)(i), FS.

History – New _______.

 

61D-14.026 Cabinet Wiring.

The slot machine shall be designed so that power and data cables into and out of the slot machine shall be routed so that they are not accessible to the general public. Security related wires and cables that are routed into a logic compartment shall not be easily accessed.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(c), (1)(d),(1)(e), (1)(i), FS.

History – New _______.

61D-14.028 Printed Circuit Board (PCB) Identification.

Each Printed Circuit Board (PCB) shall be identifiable by a permanently affixed name or number, and revision level and:

(1)   The top assembly revision level of the PCB shall be identifiable;

(2) Spare PCBs shall be inspected and approved by the division, then kept and maintained in a secure area.  Such PCBs shall meet all the requirements of this section;

(3)   Manufacturers shall ensure that PCBs, used in their slot machines, conform to the documentation and the certified versions of those PCBs that were evaluated and certified by a licensed independent test laboratory;

(4)   The slot machine licensee shall maintain a log of all PCBs that tracks each PCB to its original approved software number, PAR sheet, and asset number; and

(5)   The PCB and the log required in (4) shall be presented to the division for inspection and approval prior to slot machine being offered for play.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(c), (1)(d),(1)(e),(1)(i), FS.

History – New _______.

61D-14.029 Mechanical Devices Used for Displaying Game Outcomes.

(1) Electro-mechanically controlled display devices shall have a closed loop of control so as to enable the software to detect a malfunction or an attempt to interfere with the correct operation of that device.  If a reel or wheel is not in the position it is supposed to be in, an error condition shall be generated.

(2)   Mechanical assemblies shall have a mechanism that ensures the correct mounting of the assembly’s artwork.

(3)   Displays shall be constructed in such a way that winning symbol combinations match up with pay lines or other indicators.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(c),(1)(d), (1)(e),(1)(i)  FS.

History – New _______.

61D-14.030 Video Monitors/Touchscreens.

Games that have video monitors shall meet the following requirements:

(1) The slot machine licensee shall maintain any touch screen monitors to ensure the accuracy of the calibration of the machine;

(2)   A touch screen shall be capable of being re-calibrated by the slot machine licensee’s staff without access to the slot machine cabinet other than opening the main door;

(3)   There shall be no hidden or undocumented buttons or touch points anywhere on a touch screen; and

(4)  The slot machine shall be capable of displaying all possible outcomes of play of the machine during testing.  

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(c),(1)(d), (1)(e),(1)(i) FS.

History – New _______.

61D-14.031 Bill Acceptors.

All acceptance devices shall be able to detect the entry of bills, tickets, or vouchers and provide a method, utilizing a bi-directional communication protocol, to enable the slot machine software to interpret and act appropriately upon a valid or invalid input. The bill input system shall be electronically based and constructed in a manner that protects against vandalism, abuse, acceptance of invalid bills, tickets, or vouchers, or other fraudulent activity. Bill acceptance device(s) shall only register credits when the bill, ticket or voucher has passed the point where it is accepted and has been irrevocably stacked.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(c),(1)(d), (1)(e),(1)(i), FS.

History – New _______.

61D-14.037 Games with Bonus Features, Multiple Win Lines, Prizes.

If the slot machine game contains a bonus feature including a “game within a game,” the following requirements shall be met:

(1) The game shall display to the player which game rules apply to the current game state;

(2) The number of plays remaining for the free game event shall be displayed as each free game is played;

(3) If a bonus or feature game requires extra credits to be wagered the game shall provide the player an opportunity to not participate;

(4) The probability of obtaining winning events or symbols on the base game shall not decrease as the game progresses; and

(5) The game shall display to the player that the game is in a bonus feature mode.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(c), (1)(d), (1)(e), FS.

History – New _______.

61D-14.038 Percentage Payout and Odds.

(1)   No slot machine game shall be certified for play by a licensed independent test laboratory if the manufacturer’s Payout and Retention (PAR) sheet does not indicate a probable minimum payout percentage of at least eighty-five percent (85%) of all credits played over the mathematical cycle of the game at a ninety-five percent (95%) level of confidence.  The licensed independent test laboratory shall test the slot machine to certify that the slot machine game meets the probable minimum payout indicated on its PAR sheet at a ninety-nine percent (99%) level of confidence.  The manufacturer or distributor shall also provide a PAR sheet with each slot machine game delivered to a slot machine licensee.

(a) The game's player return over the cycle of both the bonus and non-bonus part of the game combined shall conform to this minimum theoretical payout to player; 

(b) The minimum theoretical payout percentage of the game shall be met at all times;

(c) The minimum theoretical payout percentage of the game shall be met when playing at the lowest end of a non-linear paytable; and

(d) The licensed independent test laboratory shall provide the minimum and maximum theoretical payout percentage within the certification report for each game.  Any alteration of a game shall require a re-evaluation of the minimum theoretical payout percentage.

(2) The slot machine licensee shall evaluate each slot machine game no less than once each month to ensure its payout is within its manufactured volatility range.  If any test of the slot machine game indicates that it is not within its manufactured volatility range, the division shall be notified and the slot machine game shall be tested for compliance by a licensed independent testing laboratory.   The slot machine game shall not be offered for play until a licensed independent testing laboratory certifies that the slot machine game complies with Chapter 551, Florida Statutes, and Rule 61D-14, F.A.C.

(3)  A report for each slot machine game shall be generated at least once each quarter.  The report shall be generated from the facility monitoring system indicating the slot machine game’s actual payout up to that point.  If the slot machine game’s actual payout is less than eighty-five percent (85%), the division shall be notified and the slot machine game shall not be offered for play until a licensed independent testing laboratory certifies that the slot machine game complies with Chapter 551, Florida Statutes, and Rule 61D-14, F.A.C.

(4)  If a licensed independent laboratory tests a slot machine game for compliance under (2) or (3) above, and finds that the slot machine game is in compliance with Chapter 551, Florida Statutes, and Rule 61D-14, F.A.C., the slot machine licensee may continue to offer that slot machine game for play.

(5)  A slot machine game shall be removed from play if:

(a)  The slot machine game has failed to remain within its manufactured volatility range for two consecutive testing periods under subsection (2); or

(b)  The slot machine game’s actual payout is less than eighty-five percent (85%) for two consecutive tests under subsection (3).

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(c), (1)(d), (1)(e), (1)(h), FS.

History – New _______.

61D-14.039 Credit Redemption, Meter, Cancel Credit, and Taxation Reporting Limits.

(1) A patron shall have the option to collect any of their remaining credits from the slot machine by the player pressing the ‘CASH OUT’ button at any time other than during a time when:

(a) A game being is played;

(b) A game is in audit mode;

(c) Any time a door is open;

(d) A game is in test mode;

(e) A credit meter or win meter incrimentation is indicated, unless the entire amount is placed on the meters when the collect button is pressed; or

(f) A game is in a payout or a memory error condition is indicated.

(2) The credit meter shall be maintained in credits or cash value. 

(3) The patron's current options and/or choices shall be clearly indicated electronically or by video display.  These options shall not be misleading.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(c), (1)(d),(1)(e), FS.

History – New _______.

61D-14.040 Game Cycle, Payment of Credits by Ticket Printer, and Ticket Redemption.

(1) A game shall be considered completed when the final transfer to the player’s credit meter takes place, in case of a win, or when all credits wagered or won that have not been transferred to the credit meter, are lost. The following are all considered to be part of a single game:

(a) Games that trigger a free game feature and any subsequent free games;

(b) “Second screen” bonus feature(s);

(c) Games with player choices;

(d) Games where the rules permit wagering of additional credits; and

(e) Double-up/gaming features.

(2) Payment of credits by ticket printer as a method of credit redemption shall only be permissible when the slot machine is linked to a computerized ticket validation system, which allows validation of the printed ticket.  The ticket validation system shall be able to identify duplicate tickets and allow for a final ticket to be printed in the event of loss of communication between slot machines with the ticket validation system. A ticket shall contain the following information:

(a) Slot machine licensee name/site identifier;

(b) Machine asset number or cashier/change booth location number;

(c) Date and time in a 24 hour format;

(d) Alpha and numeric dollar amount of the ticket;

(e) Ticket sequence number;

(f) Validation number, unless the ticket is printed due to a loss of communication with the ticket validation system;

(g) Bar code or any machine readable code representing the validation number;

(h) Type of transaction or other method or differentiating ticket types; and

(i) Indication of an expiration period from date of issue, or date and time the ticket will expire in a 24 hour format based upon the local date/time format.

(3)   A slot machine shall only generate a ticket through an internal document printer by redeeming all credits.

(4)   Tickets or payment vouchers shall only be paid at a cashier’s cage or ticket payment automated ticket redemption machine linked to the ticket validation system.

(5) Where ticket validation is to take place at a cashier/change booth, the cashier shall print a validation receipt, after the ticket is electronically validated. The validation receipt shall contain the following printed information:

(a)   Machine asset number;

(b)   Validation number;

(c)   Date and time paid;

(d)   Amount; and

(e)   Cashier/change booth identifier.

(6)   Any adjustment made to any ticket or voucher shall require two approval signatures, of which at least one of the signatures shall be by a supervisor, and all changes shall be contained in a log indicating who, what, when, the item value before and after the change, and the reason for the adjustment.

(7)   Any device that holds ticket information in its memory shall not allow the removal of that information unless it has first transferred that information to the database of the facility based monitoring system.

(8)   Provisions shall be made in the slot machine licensee’s internal controls for an alternate method to pay credits in the event of the loss of communication with the ticket validation system.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(c), (1)(d), (1)(e),(1)(i) FS.

History – New _______.

61D-14.041 Randomness Requirements and Game Play Auditing.

(1) Each slot machine shall utilize an internal random number generator (RNG).  The RNG shall comply with the following standards:

(a) The RNG shall be statistically independent from any other device;

(b) The RNG shall conform to the random distribution values specified in the slot machine’s PAR sheet;

(c) Pass statistical tests such as the chi-squared test or random distribution analysis test;

(d) Be cycled continuously in the background between games and during game play;

(e) Randomly determine the first seed number;

(f) If a function of a slot machine requires a random number to be generated with a smaller range than that provided by the slot machine’s RNG, the method of re-scaling shall be designed in such a way that all numbers within the lower range are equally probable; and

(g)   If a particular random number selected is outside the range of equal distribution of re-scaling values, it is permissible to re-scale using a method such as discarding that random number and selecting the next in sequence.

(2) A slot machine shall use communication protocols to protect the RNG and random selection process from influence by associated equipment.

(3) Each possible permutation or combination of game elements that produces a winning or losing game outcome shall be available for random selection at the initiation of each play. 

(4)  The slot machine shall not make a variable secondary decision after selection of the game outcome.  The slot machine shall not make a display that indicates the patron is getting close to a win or that the chance to win is improved by another play.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(c), (1)(d),(1)(e), (1)(g), FS.

History – New _______.

61D-14.042 Accounting and Occurrence Meter Specifications.

(1) There shall be a minimum of two (2) electro-mechanical meters contained in each slot machine.  One electro-mechanical meter shall measure total credits into the slot machine.  The other electro-mechanical meter shall measure total credits paid out of the slot machine.

(2)   The required electronic accounting meters are as follows:

(a) The amounts wagered or cash in meter shall cumulatively count the total amounts wagered during game play, except credits that are won during the game that are subsequently risked in a double-up mode;

(b) The amounts won or credit out meter shall cumulatively count all amounts won by the player at the end of the game that were not paid by an attendant, including amounts paid by a ticket printer. This meter shall not increment for bills inserted and cashed out to allow the slot machine to be used as a change machine;

(c) The drop meter shall maintain a cumulative count of the credit value of all bills and tickets inserted into the bill acceptor for play;

(d)  The handpays meter shall reflect the cumulative amounts paid by an attendant;

(e) The cancelled credit meter shall reflect the cumulative amounts paid by an attendant that are in excess of the credit limit and residual credits that are collected; and

(f)    Printer games do not require a cancelled credit meter unless a “printer limit” option exists on the game.

(3)   The required electronic occurrence meters are as follows:

(a) The games-played  meter shall display the cumulative number of games played since the last RAM clear;

(b) A cabinet door meter shall display the number of times the front cabinet door was opened since the last RAM clear; and

(c) The drop door meter shall display the number of times the drop door and the bill acceptor door was opened since the last RAM clear.

(4)   Each individual slot machine available for play shall have at least amount bet and amount won meters in either credits or dollars. 

(5)   For each type of slot machine that offers a double-up option, there shall be two meters to indicate the amount doubled and the amount won, which shall increment every time a double-up play occurs.

(6)   All electronic meters required by this section shall communicate their information to the facility based monitoring system.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(c), (1)(d),(1)(e), (1)(g), FS.

History – New _______.

61D-14.043 Transaction Log, Accountability of Bills/Tickets, Bill Acceptor Recall, and Number of Last Plays Required.

(1)   All slot machines shall have the ability to display a complete transaction history for the most recent transactions with a cashless wagering system including at least the previous thirty-four (34) transactions prior to the most recent transaction that incremented any of the accounting meters.

(2) A slot machine shall maintain electronic metering to be able to report the following:

(a) Total monetary value of all bills, tickets, or vouchers accepted;

(b) Total number of all bills, tickets, or vouchers accepted; and

(c) A breakdown of the following items accepted by the bill acceptor:

1. For bills, the game shall report the number of bills accepted for each bill denomination; and

2. For all tickets or vouchers the game shall have a separate meter that reports the number of such items accepted.

(3) A slot machine shall retain in its memory and be capable of displaying the denomination of the last five (5) items referenced in (2)(c) accepted by the bill acceptor.

(4) Information on at least the last ten (10) games shall be retrievable by the operation of an external key-switch, or another secure method that is not available to the player. The slot machine shall provide all information required to fully reconstruct the last ten (10) plays.  The information shall include:

(a) The value of initial credits;

(b)   The value of credits bet;

(c)   The value of credits won;

(d)   The value of credits paid; 

(e)   Each final game outcome including all player choices and bonus features; and

(f)    The results of double-up options.

(5)   The last game recall shall reflect bonus rounds in their entirety. If a bonus round lasts a specific number of events, each with separate outcomes, each of the specific events shall be displayed with its corresponding outcome, if the outcome resulted in an award.  The recall shall reflect events that are screen position dependent, if the outcome resulted in an award.  There shall be a minimum of fifty (50) games recallable for slot machines that have the potential for infinite free games.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(c), (1)(d),(1)(e), (1)(g), FS.

History – New _______.

61D-14.044 Identification of Program Storage Media, and Slot Machine Technical Requirements.

(1) All program storage media, both writable or non-writable, including EPROMs, DVD, CD-ROM, and any other type of program storage devices shall be marked with information to identify the software and revision level of the information stored in the devices and shall only be accessible with access to the locked logic compartment.  If the program is copied to and executed from RAM, the slot machine shall have a method to display the program storage media identification information.

(2) The program storage media shall not be re-writeable and shall be finalized and closed to prevent further writing.

(3) The control program shall authenticate all files that are critical to the accurate operation of the slot machine (“critical files”) by employing a hashing algorithm which produces a “message digest” output of at least 128 bits at minimum, as certified by the licensed independent test laboratory. The message digest(s) shall be stored on a memory device within the slot machine. Message digests which reside on any other medium shall be encrypted, using a public/private key algorithm with a minimum of a 768 bit key or an equivalent encryption algorithm with similar security certified by the licensed independent test laboratory.

(4)   The slot machine shall authenticate all critical files against the stored message digest(s), as required in (3), above. In the event of a failed authentication after the slot machine has been powered up, the slot machine shall immediately enter an error condition with a tower light signal activation and record the details including time and date of the error in a log.  This error shall require supervisor intervention to clear.  The slot machine shall display specific error information and shall not clear until the file authenticates, following the supervisor intervention, or the medium is replaced or corrected.

(5) Integrity checks of the components that are critical to the slot machine’s operation shall occur during the execution of those components and the first time the files are loaded for use.  RAM and program storage device space that is not critical to machine security are not required to be validated. 

(6) Tests of critical files shall be made during each slot machine restart. 

(7)   Test methodology shall detect 99.99 percent of all possible failures.  All critical memory shall:

(a) Have the ability to retain data for a minimum of thirty (30) days after power is removed from the slot machine.  The battery used to retain power shall recharge itself to its full potential in a maximum of twenty-four (24) hours.  The shelf life of the battery used shall be at least five (5) years;

(b) Only be cleared in accordance with internal controls established by the slot machine licensee;

(c) Result in a RAM error message, if the control program detects an unrecoverable memory error; and

(d) The RAM shall not be cleared automatically, but shall require a full RAM clear performed by a supervisory employee.

(8) A RAM clear shall only be authorized for the following:

(a)   A slot machine malfunction that results in an unrecoverable memory error;

(b)   Failure of the RAM chip;

(c)   To permit modifications to the slot machine’s program; and

(d)   To allow system troubleshooting for possible RAM failure.

(9)   No RAM clear procedure shall be approved unless the division and FDLE are notified in writing of the RAM clear procedure within eight hours prior to the requested RAM clear.  The notification to the division or FDLE shall state the reason set forth in (8) for the RAM clear and provide supporting documentation to substantiate the request.   The notification of the RAM clear shall also include a written record of the slot machine’s previous ten plays, unless the slot machine is incapable of producing a record of such plays.   If the division or FDLE object to the RAM clear for failure to comply with this section or because of an active investigation, the slot machine licensee shall not conduct the RAM clear until such time as the division’s or FDLE’s objection has been resolved.

(10) Following the initiation of a RAM clear procedure the slot machine’s control program shall execute a routine that initializes each and every bit of data in RAM to the default state, except those portions of RAM that are critical to the operation of the slot machine.  The default reel position or game display after a RAM clear shall not indicate the top award on any selectable line.  The default game display, upon entering game play mode, shall also not display the top award. 

(11) Slot machines shall be capable of detecting and displaying error conditions and illuminating the tower light for each machine.  Play of the slot machine shall cease if the error is for:

(a) Loss of communication with the facility based monitoring system;

(b) RAM error;

(c) ROM error;

(d)   Low RAM battery, for batteries external to the RAM itself, or low power source;

(e) Currency-in jam;

(f) Program error or authentication mismatch;

(g) Door open, including bill acceptor;

(h) Reel spin errors:

1. The specific reel number shall be identified in the error code;

2. The final positioning of the reel, if the final indexed position error exceeds one-half of the width of the smallest symbol on the reel strip; and

3. Malfunctions such as a reel which is jammed, or is not spinning freely, or any attempt to manipulate their final resting position;

(i) Power reset;

(j) Out-of-paper;

(k) Printer jam;

(l)  Printer failure; and

(m) Printer disconnected.

(12) A deion of slot machine error codes and their meanings shall be affixed inside the slot machine. However, this subsection does not apply to video-based games that shall display text messages for error conditions.

(13) The software shall be able to recover to the state it was in immediately prior to the occurrence of a program interruption.  Communications to an external device shall not begin until the program resumption routine is completed, and:

(a) Upon restoration of power to the slot machine, the previous error message shall be displayed and the slot machine shall remain locked-up; and

(b) Upon resumption of the slot machine’s control program, the following procedures shall be performed:

1.     Slot machine control programs shall test themselves for possible corruption due to failure of the program storage media; and

2.     Mechanical displays shall re-spin automatically to display the last valid game’s result when the play mode is re-entered, and the reel positions have been altered.

(14) When the slot machine’s main door is opened, the slot machine game shall cease play, enter an error condition, display an error message, disable bill acceptance and illuminate the tower light. When the slot machine’s main door is closed, the game shall return to its original state and display an error message, until the next game has ended.  The software shall detect any access to the following doors or secure areas:

(a) External doors;

(b) Drop box door; and

(c) Bill acceptor door.

(15) Each slot machine and/or bill acceptor shall detect and display an error condition and the bill acceptor shall be disabled for the following conditions:

(a) Bill stacker full;

(b) Bill jams;

(c) Bill acceptor door open; and

(d) Bill stacker door open or bill stacker removed.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(c), (1)(d),(1)(e), (1)(f), FS.

History – New _______.

61D-14.046 Facility Based Monitoring System Functionality.

A facility based monitoring system shall provide for the following security and audit requirements:

(1) A program that enables on-line searching of the event log for the present storage cycle and for the previous 30 days through archived data or restoration from backup memory devices.  The program shall have the ability to perform a search based on the following:

(a)   Date and time range;

(b)   Unique hardware components that interface with the facility based monitoring system; and

(c)   Event number or identifier.

(2) A master “slot file” that is an operating database for every slot machine in operation and includes the following information:

(a)   Unique interface element or location identification number;

(b)   Asset number;

(c)   The lowest value of a wager that can be placed on the slot machine;

(d)   Theoretical payout percentage of the slot machine; and

(e)   Control program identification numbers within the slot machine;

(3)   A database that maintains events generated by a slot machine including the following:

(a)   Date and time which the event occurred;

(b)   Identity of the slot machine that generated the event; and

(c)   A unique number/code that defines the event;

(4)   Password access or logon.  There shall be a provision for system administrator notification and user lockout or audit trail entry after five (5) unsuccessful login attempts; and

(5)   Prohibit alteration of any log information communicated from the slot machine.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(d), (1)(e), (1)(i), 551.104(4)(f), FS.

History – New _______.

61D-14.047 Facility Based Monitoring System and Computer Diagnostics.

(1) The slot machine communication protocol shall have the ability to, in real-time, immediately act upon commands received from the facility based monitoring system, which provide:

(a) The ability to suspend play on a slot machine; and

(b) Daily reports of events and all accounting data.

(2)  The facility based monitoring system shall capture all information required for tickets enumerated in Rule 61D-14.040(2), F.A.C.

(3)   The facility based monitoring system shall not permit a configuration setting change that causes an obstruction or interruption to the electronic accounting meters, affect the integrity of the slot machine, or communications without a RAM clear as provided in Rule 61D-14.044(8), F.A.C.

(4) All systems that are critical to the operation of the slot machine’s interface element and the facility based monitoring system shall be tested to determine performance with its manufactured design specifications through the following tests:

(a) Within the laboratory setting; and

(b) On-site testing following the initial install of the system to ensure proper configuration of the equipment and installation of the security applications.

(5)   An interface element is any component within a system that is external to the operation of the slot machines that assists in the collection and processing of data that is sent to the facility based monitoring system.  All interface elements shall:

(a) Be installed in a locked area;

(b)   Maintain separate electronic meters that shall be capable of review on demand at the interface element level;

(c)   Retain the required information after a power loss for 72 hours;

(d)   Provide a means to preserve all meter information required by Rule 61D-14.042, F.A.C., and event information required by Rule 61D-14.046, F.A.C.,  until it is communicated to the facility based monitoring system; and

(e)   Allow for the association of an asset number used in conjunction with a slot machine file on the facility based monitoring system. The asset number shall be used by the facility based monitoring system to track all information of the slot machine. The facility based monitoring system shall not allow for a duplicate slot machine file entry of the slot machine’s asset number.

(6)   The interface elements that serve as data collectors for the facility based monitoring system shall provide for the following:

(a)   An error detection and correction scheme to ensure an accuracy of ninety-nine percent (99%) or better of messages received; and

(b)   Encryption of communications.

(7) The facility based monitoring system shall maintain an internal master clock that reflects time in 24 hour format and data that shall be used to provide for the following:

(a)   Time stamping of events;

(b)   The reference clock for reporting; and

(c)   Updating of clocks in the system servers, networked systems or distributed systems.

 (8) The facility based monitoring system shall not permit the alteration of any accounting or event log information without the approval of a supervisor.  In the event financial data is changed, an audit log shall be maintained to document:

(a) Data element altered;

(b) Data element value prior to alteration;

(c) Data element value after alteration;

(d) Time and date of alteration; and

(e) Personnel that performed alteration.

(9)   There shall be redundant copies of each log file or system database or both, with open support for backups and restoration.

(10) The data contained in the facility based monitoring system shall be saved to a back-up file that shall be updated no less than once every eight hours.  The information shall be used in the event of a system wide failure when the facility based monitoring system cannot be restarted in any other way.  The facility based monitoring system shall only be reloaded utilizing data contained in the most recent complete back-up that contains at least the following:

(a) Events log;

(b) Accounting information;

(c) Auditing information; and

(d) Specific site information such as device file or employee file.

(11) The facility based monitoring system shall implement self monitoring for all interface elements and shall notify the system administrator of any error condition.

(12) The facility based monitoring system shall monitor the operation of each slot machine in real-time.  In addition:

(a) All financial accounting information for each slot machine shall be retrieved on a daily basis;

(b) All events shall be reported in real-time; and

(c) Security shall support measures to ensure that there is no alteration of any information as it is being communicated from the slot machines to the facility based monitoring system.

(13) The facility based monitoring system shall not enable the slot machine(s) for play until the control program is authenticated following receipt of any handpay reset or error listed in Rule 61D-14.044(11), F.A.C.

(14) The facility based monitoring system shall collect and store the following information from each slot machine:

(a) Total credits-in;

(b) Total credits-out;

(c) Total value of all bills, tickets and vouchers collected by the slot machine;

(d) Total value of all handpays;

(e) Cancelled unpaid credits;

(f)    Total monetary value of all bills accepted;

(g)   Total number of each type of bill accepted by denomination;

(h) Games played;

(i)    Cabinet door openings;

(j)    Drop door openings;

(k)   Total monetary value of all tickets accepted; and

(l)    Total monetary value of all tickets produced.

Specific Authority 551.103(1), 551.122FS.

Law Implemented 551.103 (1)(d), (1)(e), (1)(i), 551.104(4)(f), FS.

History – New _______.

61D-14.048 Facility Based Monitoring System Required Reports.

(1)   Reports shall be generated on daily, weekly, monthly, and yearly periods.  A life to date report shall also be generated yearly from stored database information. These reports at minimum shall consist of the following:

(a) Net win/revenue report for each slot machine;

(b) Comparison reports for bills, tickets or vouchers accepted by the slot machine with dollar value totals for each type;

(c) Metered vs. actual jackpot comparison report with the dollar value totals for each;

(d) Statistical payout percentage vs. actual payout percentage comparison with variances; and

(e) Event log of errors referenced in Rule 61D-14.044(11), F.A.C., and hand-paid jackpots for each slot machine. 

(2) A facility based monitoring system shall capture and record every handpay message from each slot machine and meet the following requirements:

(a) Handpay messages shall be created for single wins and accumulated credit cash outs, which result in handpays;

(b) For every single win event that is equal to or greater than the tax reporting threshold, which has been established pursuant to 26 Code of Federal Regulations, Section 7.6041-1 as $1,200, the facility based monitoring system shall send a message advising of the need for Internal Revenue Service forms W2G or 1042-S, which is to be processed, either via the facility based monitoring system or manually.  This option shall not be overridden;

(c)   An original jackpot slip shall not be voided without the written authorization of a supervisor; and

(d)   The following information shall be required for all slips generated by the facility based monitoring system:

1.     Type of slip;

2.     Numeric slip identifier that increments per event;

3.     Date and time;

4.     Slot machine asset number;

5.     The lowest value wager that can be made on the game;

6.     Amount of jackpot, accumulated credit, and additional pay;

7.     A $1,200 payout message referenced in (b);

8.     Additional payout;

9.     Total before taxes and taxes withheld; and

10. Amount paid to the patron.

(3) The following reports shall be generated and reconciled with all validated/redeemed tickets:

(a) Ticket issuance report;

(b) Ticket redemption report;

(c) Ticket liability report for tickets that have been issued and not redeemed;

(d) Ticket drop variance report;

(e) Transaction detail report shall be available from the ticket validation system that shows all tickets generated by a slot machine and all tickets redeemed by a ticket validation terminal or other slot machines; and

(f) Cashier report that details individual tickets, the sum of the tickets paid by cashier/change booth or redemption terminal.

(4)   The facility based monitoring system shall have the ability to produce the following financial and player reports:

(a)  A liability report that shall include previous days starting value of outstanding cashless liability, aggregate cashless-in and out totals, and ending value cashless liability;

(b) Cashless meter reconciliation summary and detail reports that shall reconcile each participating slot machine’s cashless meter(s) against the facility based monitoring system’s records of cashless activity; and

(c) Cashier summary and detail reports that shall include player electronic buy-ins and cash-out, amount of transaction, date and time of transaction.

(5)   Nothing in this section shall be interpreted to limit the ability of the division or FDLE to request reports from the facility based monitoring system as authorized by Chapter 551, Florida Statutes, and Rule 61D-14, F.A.C.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(d), (1)(e),(1)(i), 551.104(4)(f), FS.

History – New _______.

61D-14.050 Floor Plan.

(1)   No slot machine licensee shall operate any slot machine unless it has submitted a floor plan of the slot machine gaming area to the division, and the division and FDLE have approved the floor plan pursuant to the requirements of this section.

(2)   The floor plan shall be based on a scale of one quarter inch equals one foot and demonstrates the placement or location of the following:

(a)   Each slot machine with its corresponding location number;

(b)   Security cameras or any other surveillance equipment;

(c)   Count rooms and cages;

(d)   The exact location of the designated slot machine gaming areas of the applicant’s facility.   Any designated slot machine gaming area shall be separated by a physical barrier with controlled entry and exit points where the slot machine licensee shall check identifications to ensure no persons under twenty-one (21) years of age are allowed access to the designated slot machine gaming area;

(e)   The security surveillance system monitoring room;

(f)    The office space provided for use by the division and FDLE as required by Rule 61D-14.018, F.A.C.;

(g)   At least one armored car bay which is capable of accommodating of loading and unloading an armored car while enclosed within the armored car bay; and

(h)   All man traps contained within the slot machine licensee’s facility used to control access to restricted areas of the facility.

(3)   The floor plan shall provide for clear lines of sight for the security surveillance system.  There shall be no area in any part of the slot machine licensee’s facility where slot machines are played or where money is collected, distributed, or counted which the security surveillance system shall be unable to monitor with the clarity required in Rule 61D-14.054, F.A.C.

(4)   A slot machine licensee who proposes to make changes to the floor plan shall submit the proposed changes to the division for review.  The division shall review the proposed changes with FDLE for compliance with the security standards set forth in these rules prior to approving the changes.  Floor plan changes shall not be made without the approval of the division and FDLE. The division shall notify the slot machine licensee in no less than 30 days of whether it approves the new floor plan.  If the floor plan is a pre-approved slot machine tournament floor plan, the slot machine licensee can change the floor plan upon seven days notice to the division and FDLE.

(5)   A copy of the floor plan shall be maintained in the surveillance control room and the slot department office.  A copy shall be provided to the division and FDLE for use in the secure monitoring room.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(i),551.104(4)(h), 551.114(5), FS.

History – New _______.

61D-14.051 Security Plan.

(1)   A security plan detailing internal controls for compliance with Rules 61D-14.050 through 61D-14.056, F.A.C., shall be submitted for approval with a license application.  The security plan shall include a floor plan referenced in Rule 61D-14.050, F.A.C. and a deion of the surveillance system and equipment utilized to comply with Rule 61D-14.054, F.A.C.  The security plan shall include a deion of the layout of the surveillance room and the configuration of the monitoring equipment as placed throughout the pari-mutuel wagering facility.

(2)   The security plan shall include deions of all equipment used by the surveillance system, a diagram that shows all of the areas to be monitored and the placement of surveillance equipment in relation to the activities being observed and a deion of the procedures used in the operation of the surveillance system.

(3)   Any change to the security plan shall be submitted to the division and FDLE for approval pursuant to the requirements of Rules 61D-14.050 through 61D-14.056, F.A.C., prior to implementation.  

(4)   A security plan shall include a system of internal controls, which shall include the following:

(a)   A deion by position of each security officer or employee, to include their duties, assignments and responsibilities;

(b)   The minimum number of security employees to be staffed by shift;

(c)   Procedures for handling incidents requiring the assignment of a security officer or employee;

(d)   Plans to provide for segregated access to the surveillance room and procedures to prevent disclosure of the identity of surveillance employees to other employees and patrons;

(e)   Radio protocol and a deion of authorized radio codes to be used;

(f)    Training requirements and procedures for employees and officers of the slot machine licensee;

(g)   A contingency plan for natural disasters, such as a hurricane, which would require a complete shut down of the facility;

(h)   A contingency plan including the use of alarms or alerts for incidents of violent crime that shall include, but not be limited to robbery, armed robbery, or an incident involving a hostage situation.  The contingency plan shall provide for no less than quarterly drills with all employees working in an area where buttons or triggers for alarms are located to ensure the employees know where all alarm or alert buttons or triggers are located and how to use them;

(i)    A contingency plan for fire preparation including, but not limited to evacuation plans;

(j)    A contingency plan for bomb or terrorist threats; and

(k)   A plan to provide for security escort and/or surveillance of access to the gaming areas by either non-gaming employees of the slot machine licensee or employees of non-gaming businesses who might require incidental access to slot machine gaming areas.  A list of such employees shall be pre-approved by the slot machine licensee.  The slot machine licensee shall maintain a record of the employee’s name, job title, driver’s license number, date of birth, home address, and name of the employer.

(5)   The security plan shall include procedures for quarterly testing of all security alarms or security alerts required by rules regulating the slot machine licensee’s operations in the slot machine licensee’s facility.

(6)   The security plan shall detail the slot machine licensee’s procedure for clearing the designated slot machine gaming areas prior to non-gaming hours.

(7)   Every slot machine licensee shall have a contingency power source in the event of a power outage that shall be sufficient to maintain the security and surveillance of all slot machine gaming related areas.

(8)   In the event any security alarm or alert is activated for any reason other than a drill or test, activity in the area covered by the security plan for that alarm or alert shall not be resumed until clearance has been obtained from FDLE.

(9)   The personnel of the Security Department shall be prohibited from carrying firearms.

(10) The slot machine licensee shall notify the division and FDLE of any event which require additional staffing.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(i), 551.104(4)(h) FS.

History – New _______.

61D-14.052 Electronic Identification and Access Control System.

(1)  A slot machine licensee shall utilize an electronic identification and access control system for its employees and employees of its vendors that shall be used to open doors to controlled areas of the slot machine licensee’s facility.  The electronic identification and access control system shall:

(a)   Provide a clear color photograph identification card or badge for all employees of the slot machine licensee or employees of its vendors;

(b)   The identification card shall be color coded or provide an alpha or numeric symbol to indicate which areas of the slot machine licensee’s facility the employee is authorized to enter; and

(c)   The photograph and color code or symbol required by these rules shall be unique to the slot machine licensee’s facility and shall be of sufficient size and clarity to allow the surveillance system to observe the photograph and identify the employee to confirm his or her authorized access to the area under surveillance.

(2)   The electronic identification and access control system shall be capable of immediately creating an event log of doors opened by use of the identification card or badge upon the request of the security or surveillance departments, the division or FDLE.  The system shall:

(a)   Be able to display a photograph of the employee opening any door; and

(b)   Cause an alarm to alert the security and surveillance departments, the division, and FDLE if a door is opened:

1.     Without the use of an identification card; or

2.     With an identification card that is not programmed to open the door.

(3)   The division and FDLE shall be provided access to any data contained in the electronic identification and access control system.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(g), (1)(i), 551.104(4)(h), FS.

History – New _______.

61D-14.053 Key Controls

(1)   Each slot machine licensee shall develop and utilize a lock and key control system that limits or restricts access to secure compartments and areas as identified in the slot licensee’s internal control procedure.  Locks and keys shall be received by the slot machine licensee’s security department and installed by a master locksmith or similarly qualified employee of the slot machine licensee. 

(2)  Notwithstanding the requirements of Rule 61D-14.052, F.A.C., the internal controls procedure of the slot machine licensee shall identify persons authorized by the slot machine licensee to possess keys providing access to the following compartments or areas:

(a)  Slot cash storage boxes;

(b)  Trolleys to transport slot cash storage boxes;

(c)  Count rooms;

(d)   Areas in which slot cash storage boxes are located; and

(e)   Compartments housing microprocessors in any slot machine.

(3) Each process outlined in the internal control procedure shall describe the method by which secure keys are accessed and the documentation requirements in (4) below.

(4) Each slot machine licensee shall implement a log system that requires documentation of access to any secure key that shall include without limitation:

(a) The name and occupational license number of the employee signing out the key;

(b) The time the key was signed out from security; and

(c) The time the key was returned to security.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(b), (1)(e), (1)(g), (1)(i), 551.104(4)(h) FS.

History – New _______.

61D-14.054 Surveillance Equipment.

 (1) Each slot machine licensee shall install, maintain and continuously operate an on-site closed circuit television surveillance system (surveillance system) at the facility.

(2)   The surveillance system shall meet the following requirements:

(a)   The surveillance system shall employ digital electronic technology with the acuity and clarity that is no less than that provided by magnetic tape systems.  To insure that all movements are discernible upon review of recorded activity, the digital equipment shall record to a quality of 4 Common Intermediate Format and shall be capable of observing and recording at no less than 30 frames per second;

(b) The system shall utilize 30 frames per second in light sensitive color cameras with pan, zoom, tilt capabilities that can be placed behind domes or one-way mirrors that conceal the cameras from view and permit clear, unobstructed views with sufficient video monitors to simultaneously cover the following various vantage points:

1.     Patrons, spectators, slot machine employees with an assigned work station and other persons in the slot machine gaming area with sufficient clarity to permit identification of such person;

2.     The movement of cash, tickets or vouchers used for play, drop boxes, drop buckets, tip boxes and other gaming equipment within the slot machine licensee’s facility;

3.     All areas and activities occurring within the count rooms, with audio-capability in those rooms, during any occupancy of those rooms;

4.     All slot change booths, with sufficient clarity to permit identification of all transactions, cash and paperwork conducted therein; 

5.     Each slot machine with sufficient clarity as to determine the display of the screen of the slot machine, the denomination of any bill, voucher or ticket used in the slot machine or any information printed on a player card inserted into a slot machine and the identification numbers affixed to each machine; and

6.     All areas where slot machines are repaired;

(c) The system may utilize less than 30 frames per second, but no less than 15 frames per second in light sensitive color cameras with pan, zoom, tilt capabilities and/or fixed cameras that can be placed behind domes or one-way mirrors that conceal the cameras from view and permit clear, unobstructed views with sufficient video monitors to simultaneously cover the areas not listed above in (b) to specifically include the following:

1.     All entrance and exit doors to the slot machine licensee’s facility including the armored car bay, and any man trap located in the facility; and

2.     All parking areas owned by the slot machine licensee with sufficient lighting in those areas to provide for clear viewing and recording;

(d) Video-printers that possess the capability to generate instantaneously upon command, a clear, still copy of the image depicted on the video recording using a minimum of four colors at 720 x 480 dots per inch on photo quality paper;

(e) All images and audio shall be digitally recorded and stored on a system with backup and retrieval capabilities including a duplication system to allow for the play-back of suspected illegal activity while the master tape continues to record activities on the designated slot machine gaming area.  Recording systems shall be locked by the manufacturer to disable the erase and reformat functions and to prevent access to the system data files.  The system shall provide uninterrupted recording while the playback or copy function is used.  If the slot machine licensee chooses to use a network for the digital recording equipment, it shall be a closed network with limited access.  The slot machine licensee shall provide the division and FDLE with the necessary software and hardware to review a downloaded recording;

(f)    The system shall have a failure notification system that provides an audible alarm, as well as a visual alert of any failure in the surveillance system or the media storage system.  The alarm and alert system shall advise the division and FDLE as well as the facility surveillance department of the failure;

(g)   The system shall have a media storage system that is configured so that a failure of any single component shall not result in the loss of any data from the media storage system;

(h)   All digital video disks or other storage media produced from the surveillance system shall contain the data with the time and date it was recorded superimposed by the media player to provide images with a video verification encryption code;

(i)    A video verification encryption code, shall be submitted to the division and FDLE, before the inspection and approval of the system;

(j)    Any slot machine that makes plays with credits equal to twenty-five dollars ($25) or more shall be covered by a dedicated surveillance camera and recorder.  Such a slot machine shall not be played without the surveillance coverage required by this subsection; and

(k)   A slot machine licensee’s surveillance system shall not have more than eight cameras required in the first stage of concentration, unless the licensee has a fault tolerant or redundant system so there is no loss of data in the event of a failure of a single first stage of concentration.

(3)   Access, or the ability to access, a surveillance system from any location outside of the surveillance room, shall be disclosed in a quarterly report filed with the division and FDLE which sets forth the location and to whom access is being provided, other than surveillance personnel, and certifies that the transmission is encrypted, firewalled on both ends and password protected.  The password protection shall contain alpha and numeric characteristics with a minimum of six characters and be changed to a previously unused password when the employment of any employee of the surveillance department is terminated or transferred.

(4)   Access to the surveillance system, surveillance system plan, and any related information, shall be limited to surveillance employees, the division, and FDLE.

(5)  The division and FDLE shall have access to all security cameras or other surveillance equipment.  The surveillance system shall be configured so that the division and FDLE are able to direct the surveillance of a particular area or person on the grounds of the slot machine licensee.

(6)   Employees of the slot machine licensee, when assigned to monitoring duties in the surveillance room, shall have no other gaming related duties.  No surveillance department employee shall transfer from the surveillance department to another department of the slot machine licensee in which he or she is employed, unless the employee is being transferred or promoted into a position that requires knowledge of the surveillance system and procedures or until one year has passed since the surveillance department employee worked in the surveillance department.

(7)   The interior of the surveillance room shall not be visible or accessible to the public.

(8)   The division or FDLE shall have immediate access to the surveillance room and other surveillance areas. The division and FDLE shall be provided, upon request, copies of digital recorded media of activities as well as copies of any images produced on a video printer.

(9)   The surveillance room shall be maintained at all times by a sufficient number of approved surveillance operators as reflected in the surveillance plan approved by the division. The division, after consultation with FDLE, shall require additional surveillance personnel should it be determined that an inadequacy of surveillance monitoring exists.

(10) Before implementing any changes to a surveillance system, the slot machine licensee shall submit the proposed changes to the division and FDLE for approval.

(11) A slot machine licensee shall notify the division and FDLE immediately of any failure of the surveillance system to continuously monitor the eligible facility or to otherwise operate properly. Play of slot machines in any area for which there is inadequate monitoring shall be suspended until the surveillance system is restored.

(12) The surveillance room shall be staffed for monitoring 24 hours a day by at least one surveillance department employee who is trained in the use of the equipment, has knowledge of slot machine operations, and the slot machine licensee’s approved internal control procedures for security and surveillance.

(13) The slot machine licensee shall be responsible to ensure that any malfunction of surveillance equipment shall be immediately repaired or replaced with a working unit.  If immediate replacement is not possible, alternative live monitoring shall be provided by the slot machine licensee personnel; otherwise, gaming in the unmonitored area(s) of the eligible facility shall immediately cease.

(14) Failure of any storage system for video or audio recordings shall be repaired or the storage system replaced within 8 hours of the failure.  The surveillance system shall provide back-up for video or audio recording during the repair and replacement time.  If after 8 hours, activity in the affected area cannot be recorded, the slot machines in that area shall be closed for play until recording is restored.  A log of all malfunctions of the surveillance and recording equipment shall be kept and such malfunctions shall be reported to the division and FDLE each day.

(15) All surveillance monitoring equipment shall be located in the surveillance room of a slot machine licensee and the surveillance department shall be responsible for its proper operation and maintenance.

(16) A slot machine licensee shall provide written notification to the division and FDLE prior to the video or audio format of any portion of their surveillance system being changed, setting forth what the change will be, when the change will occur, and how the change will affect their surveillance system as a whole.

(17) All equipment that is used to monitor and record activities within the designated gaming area(s) shall remain accessible solely to surveillance personnel except when such equipment is being repaired or replaced.  All repairs shall take place in the presence of surveillance department personnel.

(18) Each slot machine licensee facility shall have at least one surveillance room to be used exclusively to monitor the activities within the slot machine licensee’s facility.  The interior of the surveillance room shall not be visible to the public and shall be continuously monitored and recorded.

Specific Authority 551.103(1), 551.122FS.

Law Implemented 551.103 (1)(g), (1)(i), 551.104(4)(h) FS.

History – New _______.

61D-14.055 Storage and Retrieval of Surveillance Recordings.

(1)   All surveillance recordings shall be in digital format and retained for at least thirty (30) days in areas referenced in Rule 61D-14.054(2)(b), F.A.C., and seven (7) days for areas referenced in Rule 61D-14.054(2)(c), F.A.C., unless provided otherwise in this section.  Recordings shall be listed on a log by surveillance personnel with the date, times, and identification of the person monitoring or changing the recording medium in a recorder. Surveillance recordings shall be released to the division or FDLE upon demand.

(2)   Any surveillance recording of illegal or suspected illegal activity or jackpot payment procedures, upon completion of the monitoring, shall be saved and stored separately and labeled in a manner with date, time and identity of surveillance personnel. The saved recordings shall be placed in a separate, secure area and written notification given to the division and FDLE.

(3)   Video recordings of activities under (2) shall not be destroyed without the written authorization of the division and FDLE. 

(4)   All surveillance recordings relating to the following shall be retained in a secure area and shall be listed on a log maintained by surveillance personnel:

(a)   All count room areas;

(b)   The vault area;

(c)   All credit and fill slip confirmation recordings; and

(d)   Any areas with cashiers or where the patrons cash tickets or vouchers.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(d), (1)(e), (1)(g), (1)(i), 551.104(4)(h) FS.

History – New _______.

61D-14.056 Security and Surveillance Logs.

(1)   The slot machine licensee shall maintain a surveillance log(s) in the surveillance room containing the following information:

(a)   The names of all persons entering or exiting the surveillance room;

(b)   A summary, including the date and time each surveillance activity commenced and terminated;

(c)   Record of any equipment or camera malfunctions;

(d)   Deion of the activity observed or performed;

(e)   Any additional information as required by the division or FDLE after notification of a specific incident;  and

(f)    All communications received by or sent from the surveillance room.

(2)   A slot machine licensee shall maintain a security log of any and all unusual occurrences for which the assignment of a security department employee is made. Each incident shall be assigned a sequential number and an entry made in the log(s) containing the following information:

(a)   The assignment number;

(b)   The date of the incident;

(c)   The time of the incident;

(d)   The location of the incident;

(e)   The nature of the incident;

(f)    The person(s) involved in the incident; and

(g)   The security department employee(s) assigned.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(g), (1)(i), 551.104(4)(h) FS.

History – New _______.

61D-14.058  Slot Machine Licensees System of Internal Controls.

(1)  Each slot machine licensee shall develop and implement internal control procedures to ensure compliance with Chapter 551, Florida Statutes and Rule 61D-14, F.A.C.

(2)  Each slot machine licensee shall submit to the division a written deion of internal control procedures that incorporate administrative and accounting controls with its application before slot machine gaming commences.

(3)  Each slot machine licensee’s internal control procedures shall include the following:

(a) Administrative controls which include the procedures and records that detail authorization of transactions; and

(b) Accounting controls shall require that;

1.     Transactions are executed in accordance with management’s general authorization;

2.     Transactions are recorded to permit preparation of financial statements in conformity with generally accepted accounting principles;

3.     Access to assets is permitted only in accordance with management authorization; and

4.     The recorded accountability for assets shall be compared with existing assets at set intervals and corrective action shall be taken with respect to any differences.

(4)   Each submission of internal control procedures shall include a statement signed by the slot machine licensee’s chief executive officer, chief operating officer, director of surveillance, director of security, director of slot machine operations, chief financial officer, and the applicant’s chief legal officer or their equivalents that the submitted internal controls conform to the requirements of Chapter 551, Florida Statutes, and Rule 61D-14, F.A.C.

(5) The division shall evaluate the internal control procedures of each applicant for a slot machine license pursuant to (1) above based on the following criteria:

(a)   Conformity to Chapter 551, Florida Statutes, and Rule 61D-14, F.A.C.; and

(b)   Evidence that the following standards are met:

1.     An audit trail that permits the review of slot machine operations or the reconstruction of gross revenue transactions;

2.     The segregation of functions as referenced in Rule 61D-14.015(4), F.A.C.; and

3.     The inclusion of all forms or documents referenced in the submission or required by Chapter 551, Florida Statutes, and Rule 61D-14, F.A.C.

(6) A current version of the internal controls of the slot machine licensee shall be maintained in the accounting, slot, and surveillance departments of the slot machine licensee. The slot machine licensee shall maintain copies of previous internal controls pursuant to the requirements of Rule 61D-14.080, F.A.C. 

(7)   The slot machine licensee’s accounting internal controls shall include procedures for the establishment of a patron signature file if such a file is utilized by the slot machine licensee.

(8) Failure of the slot machine licensee to implement or comply with any internal control procedure required in Rule 61D-14, F.A.C., is a violation of this section.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(d), (1)(e), (1)(g), (1)(i), FS.

History – New _______.

61D-14.059 Slot Machine Licensee Personnel.

(1)   Each slot machine licensee shall maintain a level of staffing, supervision, and delineation of responsibilities of the organizational structure that ensures the proper operations as provided in the internal control procedures.

(2) The slot machine licensee’s internal controls shall provide for a pre-employment screening process for each prospective employee, including the following:

(a)   A completed employment application;

(b)   Documentation that prospective employees for supervisory, managerial or surveillance positions have skills, training and experience for the position; and

(c)  A reviewed credit report.

(3)  The slot licensee shall maintain a personnel file for each employee that shall contain without limitation the following:

(a)  The original employment application required by the slot licensee;

(b)  The initial credit report and all subsequent credit reports that shall be obtained at least every 24 months;

(c)  A copy of all occupational licenses issued by the division during employment;

(d)   A current detailed position deion that includes access rights granted to the employee relating to secure areas, keys, or information;

(e)   A chronological log of all positions held by the employee indicating the effective and termination date of each position;

(f)    All performance evaluations conducted by the slot licensee;

(g)   Documentation relating to performance issues such as promotions, demotions, reprimands, or separations;

(h)   The slot licensee shall ensure that persons in positions requiring professional occupational licenses satisfactorily complete Form DBPR PMW-3440, Professional or Business Employee Supplemental Information, which is adopted and incorporated by Rule 61D-15.001, F.A.C.; and

(i)    All federal and state income tax returns filed by the employee for the previous five years, if the employee is identified in Rule 61D-14.002(1)(e), F.A.C., or is required to hold a professional occupational license.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(g), (1)(i), FS.

History – New _______.

61D-14.060 Business Entities, Internal Controls and Personnel Records.

(1)  The slot machine licensee’s internal controls shall provide for screening of business entities supplying slot machine gaming related equipment and services, which shall include out-sourced general employment services, to the slot machine licensee or its affiliates including the following:

(a)   A reference check of the business entity from other gaming jurisdictions; and

(b)   Ensure the business entity has obtained a current occupational license.

(2)  The slot licensee shall maintain a file for each business referenced in (1) above that shall contain the following:

(a)     Documentation of the results of the reference check in (1) above;

(b)   A copy of the current business license issued by the division;

(c)   A list of the business entity’s employees who require an occupational license pursuant to Section 551.107(2)(a)3., Florida Statutes;

(d)   A copy of each contract the slot machine licensee has entered into with the business entity; and

(e)   A completed Form DBPR PMW-3430, Business Entity Internal Control Information, which is adopted and incorporated by Rule 61D-15.001, F.A.C.

(3)  Any business entity holding an occupational license shall conduct pre-employment screening referenced in Rule 61D-14.059(2),  F.A.C., for any employee that would be required to obtain an occupational license referenced in Rule 61D-14.005, F.A.C.  The documentation required for such employees shall be maintained in an office of the business entity located in this state or with a registered agent of the business entity located in this state.

(4)  Any business entity holding an occupational license shall maintain a file for each of its employees, in compliance with Rule 61D-14.059(3), F.A.C.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(d), (1)(g), (1)(i), FS.

History – New _______.

61D-14.051 Security Plan.

(1)   A security plan detailing internal controls for compliance with Rules 61D-14.050 through 61D-14.056, F.A.C., shall be submitted for approval with a license application.  The security plan shall include a floor plan referenced in Rule 61D-14.050, F.A.C. and a deion of the surveillance system and equipment utilized to comply with Rule 61D-14.054, F.A.C.  The security plan shall include a deion of the layout of the surveillance room and the configuration of the monitoring equipment as placed throughout the pari-mutuel wagering facility.

(2)   The security plan shall include deions of all equipment used by the surveillance system, a diagram that shows all of the areas to be monitored and the placement of surveillance equipment in relation to the activities being observed and a deion of the procedures used in the operation of the surveillance system.

(3)   Any change to the security plan shall be submitted to the division and FDLE for approval pursuant to the requirements of Rules 61D-14.050 through 61D-14.056, F.A.C., prior to implementation.  

(4)   A security plan shall include a system of internal controls, which shall include the following:

(a)   A deion by position of each security officer or employee, to include their duties, assignments and responsibilities;

(b)   The minimum number of security employees to be staffed by shift;

(c)   Procedures for handling incidents requiring the assignment of a security officer or employee;

(d)   Plans to provide for segregated access to the surveillance room and procedures to prevent disclosure of the identity of surveillance employees to other employees and patrons;

(e)   Radio protocol and a deion of authorized radio codes to be used;

(f)    Training requirements and procedures for employees and officers of the slot machine licensee;

(g)   A contingency plan for natural disasters, such as a hurricane, which would require a complete shut down of the facility;

(h)   A contingency plan including the use of alarms or alerts for incidents of violent crime that shall include, but not be limited to robbery, armed robbery, or an incident involving a hostage situation.  The contingency plan shall provide for no less than quarterly drills with all employees working in an area where buttons or triggers for alarms are located to ensure the employees know where all alarm or alert buttons or triggers are located and how to use them;

(i)    A contingency plan for fire preparation including, but not limited to evacuation plans;

(j)    A contingency plan for bomb or terrorist threats; and

(k)   A plan to provide for security escort and/or surveillance of access to the gaming areas by either non-gaming employees of the slot machine licensee or employees of non-gaming businesses who might require incidental access to slot machine gaming areas.  A list of such employees shall be pre-approved by the slot machine licensee.  The slot machine licensee shall maintain a record of the employee’s name, job title, driver’s license number, date of birth, home address, and name of the employer.

(5)   The security plan shall include procedures for quarterly testing of all security alarms or security alerts required by rules regulating the slot machine licensee’s operations in the slot machine licensee’s facility.

(6)   The security plan shall detail the slot machine licensee’s procedure for clearing the designated slot machine gaming areas prior to non-gaming hours.

(7)   Every slot machine licensee shall have a contingency power source in the event of a power outage that shall be sufficient to maintain the security and surveillance of all slot machine gaming related areas.

(8)   In the event any security alarm or alert is activated for any reason other than a drill or test, activity in the area covered by the security plan for that alarm or alert shall not be resumed until clearance has been obtained from FDLE.

(9)   The personnel of the Security Department shall be prohibited from carrying firearms.

(10) The slot machine licensee shall notify the division and FDLE of any event which require additional staffing.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(i), 551.104(4)(h) FS.

History – New _______.

61D-14.052 Electronic Identification and Access Control System.

(1)  A slot machine licensee shall utilize an electronic identification and access control system for its employees and employees of its vendors that shall be used to open doors to controlled areas of the slot machine licensee’s facility.  The electronic identification and access control system shall:

(a)   Provide a clear color photograph identification card or badge for all employees of the slot machine licensee or employees of its vendors;

(b)   The identification card shall be color coded or provide an alpha or numeric symbol to indicate which areas of the slot machine licensee’s facility the employee is authorized to enter; and

(c)   The photograph and color code or symbol required by these rules shall be unique to the slot machine licensee’s facility and shall be of sufficient size and clarity to allow the surveillance system to observe the photograph and identify the employee to confirm his or her authorized access to the area under surveillance.

(2)   The electronic identification and access control system shall be capable of immediately creating an event log of doors opened by use of the identification card or badge upon the request of the security or surveillance departments, the division or FDLE.  The system shall:

(a)   Be able to display a photograph of the employee opening any door; and

(b)   Cause an alarm to alert the security and surveillance departments, the division, and FDLE if a door is opened:

1.     Without the use of an identification card; or

2.     With an identification card that is not programmed to open the door.

(3)   The division and FDLE shall be provided access to any data contained in the electronic identification and access control system.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(g), (1)(i), 551.104(4)(h), FS.

History – New _______.

61D-14.053 Key Controls

(1)   Each slot machine licensee shall develop and utilize a lock and key control system that limits or restricts access to secure compartments and areas as identified in the slot licensee’s internal control procedure.  Locks and keys shall be received by the slot machine licensee’s security department and installed by a master locksmith or similarly qualified employee of the slot machine licensee. 

(2)  Notwithstanding the requirements of Rule 61D-14.052, F.A.C., the internal controls procedure of the slot machine licensee shall identify persons authorized by the slot machine licensee to possess keys providing access to the following compartments or areas:

(a)  Slot cash storage boxes;

(b)  Trolleys to transport slot cash storage boxes;

(c)  Count rooms;

(d)   Areas in which slot cash storage boxes are located; and

(e)   Compartments housing microprocessors in any slot machine.

(3) Each process outlined in the internal control procedure shall describe the method by which secure keys are accessed and the documentation requirements in (4) below.

(4) Each slot machine licensee shall implement a log system that requires documentation of access to any secure key that shall include without limitation:

(a) The name and occupational license number of the employee signing out the key;

(b) The time the key was signed out from security; and

(c) The time the key was returned to security.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(b), (1)(e), (1)(g), (1)(i), 551.104(4)(h) FS.

History – New _______.

61D-14.054 Surveillance Equipment.

 (1) Each slot machine licensee shall install, maintain and continuously operate an on-site closed circuit television surveillance system (surveillance system) at the facility.

(2)   The surveillance system shall meet the following requirements:

(a)   The surveillance system shall employ digital electronic technology with the acuity and clarity that is no less than that provided by magnetic tape systems.  To insure that all movements are discernible upon review of recorded activity, the digital equipment shall record to a quality of 4 Common Intermediate Format and shall be capable of observing and recording at no less than 30 frames per second;

(b) The system shall utilize 30 frames per second in light sensitive color cameras with pan, zoom, tilt capabilities that can be placed behind domes or one-way mirrors that conceal the cameras from view and permit clear, unobstructed views with sufficient video monitors to simultaneously cover the following various vantage points:

1.     Patrons, spectators, slot machine employees with an assigned work station and other persons in the slot machine gaming area with sufficient clarity to permit identification of such person;

2.     The movement of cash, tickets or vouchers used for play, drop boxes, drop buckets, tip boxes and other gaming equipment within the slot machine licensee’s facility;

3.     All areas and activities occurring within the count rooms, with audio-capability in those rooms, during any occupancy of those rooms;

4.     All slot change booths, with sufficient clarity to permit identification of all transactions, cash and paperwork conducted therein; 

5.     Each slot machine with sufficient clarity as to determine the display of the screen of the slot machine, the denomination of any bill, voucher or ticket used in the slot machine or any information printed on a player card inserted into a slot machine and the identification numbers affixed to each machine; and

6.     All areas where slot machines are repaired;

(c) The system may utilize less than 30 frames per second, but no less than 15 frames per second in light sensitive color cameras with pan, zoom, tilt capabilities and/or fixed cameras that can be placed behind domes or one-way mirrors that conceal the cameras from view and permit clear, unobstructed views with sufficient video monitors to simultaneously cover the areas not listed above in (b) to specifically include the following:

1.     All entrance and exit doors to the slot machine licensee’s facility including the armored car bay, and any man trap located in the facility; and

2.     All parking areas owned by the slot machine licensee with sufficient lighting in those areas to provide for clear viewing and recording;

(d) Video-printers that possess the capability to generate instantaneously upon command, a clear, still copy of the image depicted on the video recording using a minimum of four colors at 720 x 480 dots per inch on photo quality paper;

(e) All images and audio shall be digitally recorded and stored on a system with backup and retrieval capabilities including a duplication system to allow for the play-back of suspected illegal activity while the master tape continues to record activities on the designated slot machine gaming area.  Recording systems shall be locked by the manufacturer to disable the erase and reformat functions and to prevent access to the system data files.  The system shall provide uninterrupted recording while the playback or copy function is used.  If the slot machine licensee chooses to use a network for the digital recording equipment, it shall be a closed network with limited access.  The slot machine licensee shall provide the division and FDLE with the necessary software and hardware to review a downloaded recording;

(f)    The system shall have a failure notification system that provides an audible alarm, as well as a visual alert of any failure in the surveillance system or the media storage system.  The alarm and alert system shall advise the division and FDLE as well as the facility surveillance department of the failure;

(g)   The system shall have a media storage system that is configured so that a failure of any single component shall not result in the loss of any data from the media storage system;

(h)   All digital video disks or other storage media produced from the surveillance system shall contain the data with the time and date it was recorded superimposed by the media player to provide images with a video verification encryption code;

(i)    A video verification encryption code, shall be submitted to the division and FDLE, before the inspection and approval of the system;

(j)    Any slot machine that makes plays with credits equal to twenty-five dollars ($25) or more shall be covered by a dedicated surveillance camera and recorder.  Such a slot machine shall not be played without the surveillance coverage required by this subsection; and

(k)   A slot machine licensee’s surveillance system shall not have more than eight cameras required in the first stage of concentration, unless the licensee has a fault tolerant or redundant system so there is no loss of data in the event of a failure of a single first stage of concentration.

(3)   Access, or the ability to access, a surveillance system from any location outside of the surveillance room, shall be disclosed in a quarterly report filed with the division and FDLE which sets forth the location and to whom access is being provided, other than surveillance personnel, and certifies that the transmission is encrypted, firewalled on both ends and password protected.  The password protection shall contain alpha and numeric characteristics with a minimum of six characters and be changed to a previously unused password when the employment of any employee of the surveillance department is terminated or transferred.

(4)   Access to the surveillance system, surveillance system plan, and any related information, shall be limited to surveillance employees, the division, and FDLE.

(5)  The division and FDLE shall have access to all security cameras or other surveillance equipment.  The surveillance system shall be configured so that the division and FDLE are able to direct the surveillance of a particular area or person on the grounds of the slot machine licensee.

(6)   Employees of the slot machine licensee, when assigned to monitoring duties in the surveillance room, shall have no other gaming related duties.  No surveillance department employee shall transfer from the surveillance department to another department of the slot machine licensee in which he or she is employed, unless the employee is being transferred or promoted into a position that requires knowledge of the surveillance system and procedures or until one year has passed since the surveillance department employee worked in the surveillance department.

(7)   The interior of the surveillance room shall not be visible or accessible to the public.

(8)   The division or FDLE shall have immediate access to the surveillance room and other surveillance areas. The division and FDLE shall be provided, upon request, copies of digital recorded media of activities as well as copies of any images produced on a video printer.

(9)   The surveillance room shall be maintained at all times by a sufficient number of approved surveillance operators as reflected in the surveillance plan approved by the division. The division, after consultation with FDLE, shall require additional surveillance personnel should it be determined that an inadequacy of surveillance monitoring exists.

(10) Before implementing any changes to a surveillance system, the slot machine licensee shall submit the proposed changes to the division and FDLE for approval.

(11) A slot machine licensee shall notify the division and FDLE immediately of any failure of the surveillance system to continuously monitor the eligible facility or to otherwise operate properly. Play of slot machines in any area for which there is inadequate monitoring shall be suspended until the surveillance system is restored.

(12) The surveillance room shall be staffed for monitoring 24 hours a day by at least one surveillance department employee who is trained in the use of the equipment, has knowledge of slot machine operations, and the slot machine licensee’s approved internal control procedures for security and surveillance.

(13) The slot machine licensee shall be responsible to ensure that any malfunction of surveillance equipment shall be immediately repaired or replaced with a working unit.  If immediate replacement is not possible, alternative live monitoring shall be provided by the slot machine licensee personnel; otherwise, gaming in the unmonitored area(s) of the eligible facility shall immediately cease.

(14) Failure of any storage system for video or audio recordings shall be repaired or the storage system replaced within 8 hours of the failure.  The surveillance system shall provide back-up for video or audio recording during the repair and replacement time.  If after 8 hours, activity in the affected area cannot be recorded, the slot machines in that area shall be closed for play until recording is restored.  A log of all malfunctions of the surveillance and recording equipment shall be kept and such malfunctions shall be reported to the division and FDLE each day.

(15) All surveillance monitoring equipment shall be located in the surveillance room of a slot machine licensee and the surveillance department shall be responsible for its proper operation and maintenance.

(16) A slot machine licensee shall provide written notification to the division and FDLE prior to the video or audio format of any portion of their surveillance system being changed, setting forth what the change will be, when the change will occur, and how the change will affect their surveillance system as a whole.

(17) All equipment that is used to monitor and record activities within the designated gaming area(s) shall remain accessible solely to surveillance personnel except when such equipment is being repaired or replaced.  All repairs shall take place in the presence of surveillance department personnel.

(18) Each slot machine licensee facility shall have at least one surveillance room to be used exclusively to monitor the activities within the slot machine licensee’s facility.  The interior of the surveillance room shall not be visible to the public and shall be continuously monitored and recorded.

Specific Authority 551.103(1), 551.122FS.

Law Implemented 551.103 (1)(g), (1)(i), 551.104(4)(h) FS.

History – New _______.

61D-14.055 Storage and Retrieval of Surveillance Recordings.

(1)   All surveillance recordings shall be in digital format and retained for at least thirty (30) days in areas referenced in Rule 61D-14.054(2)(b), F.A.C., and seven (7) days for areas referenced in Rule 61D-14.054(2)(c), F.A.C., unless provided otherwise in this section.  Recordings shall be listed on a log by surveillance personnel with the date, times, and identification of the person monitoring or changing the recording medium in a recorder. Surveillance recordings shall be released to the division or FDLE upon demand.

(2)   Any surveillance recording of illegal or suspected illegal activity or jackpot payment procedures, upon completion of the monitoring, shall be saved and stored separately and labeled in a manner with date, time and identity of surveillance personnel. The saved recordings shall be placed in a separate, secure area and written notification given to the division and FDLE.

(3)   Video recordings of activities under (2) shall not be destroyed without the written authorization of the division and FDLE. 

(4)   All surveillance recordings relating to the following shall be retained in a secure area and shall be listed on a log maintained by surveillance personnel:

(a)   All count room areas;

(b)   The vault area;

(c)   All credit and fill slip confirmation recordings; and

(d)   Any areas with cashiers or where the patrons cash tickets or vouchers.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(d), (1)(e), (1)(g), (1)(i), 551.104(4)(h) FS.

History – New _______.

61D-14.056 Security and Surveillance Logs.

(1)   The slot machine licensee shall maintain a surveillance log(s) in the surveillance room containing the following information:

(a)   The names of all persons entering or exiting the surveillance room;

(b)   A summary, including the date and time each surveillance activity commenced and terminated;

(c)   Record of any equipment or camera malfunctions;

(d)   Deion of the activity observed or performed;

(e)   Any additional information as required by the division or FDLE after notification of a specific incident;  and

(f)    All communications received by or sent from the surveillance room.

(2)   A slot machine licensee shall maintain a security log of any and all unusual occurrences for which the assignment of a security department employee is made. Each incident shall be assigned a sequential number and an entry made in the log(s) containing the following information:

(a)   The assignment number;

(b)   The date of the incident;

(c)   The time of the incident;

(d)   The location of the incident;

(e)   The nature of the incident;

(f)    The person(s) involved in the incident; and

(g)   The security department employee(s) assigned.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(g), (1)(i), 551.104(4)(h) FS.

History – New _______.

61D-14.058  Slot Machine Licensees System of Internal Controls.

(1)  Each slot machine licensee shall develop and implement internal control procedures to ensure compliance with Chapter 551, Florida Statutes and Rule 61D-14, F.A.C.

(2)  Each slot machine licensee shall submit to the division a written deion of internal control procedures that incorporate administrative and accounting controls with its application before slot machine gaming commences.

(3)  Each slot machine licensee’s internal control procedures shall include the following:

(a) Administrative controls which include the procedures and records that detail authorization of transactions; and

(b) Accounting controls shall require that;

1.     Transactions are executed in accordance with management’s general authorization;

2.     Transactions are recorded to permit preparation of financial statements in conformity with generally accepted accounting principles;

3.     Access to assets is permitted only in accordance with management authorization; and

4.     The recorded accountability for assets shall be compared with existing assets at set intervals and corrective action shall be taken with respect to any differences.

(4)   Each submission of internal control procedures shall include a statement signed by the slot machine licensee’s chief executive officer, chief operating officer, director of surveillance, director of security, director of slot machine operations, chief financial officer, and the applicant’s chief legal officer or their equivalents that the submitted internal controls conform to the requirements of Chapter 551, Florida Statutes, and Rule 61D-14, F.A.C.

(5) The division shall evaluate the internal control procedures of each applicant for a slot machine license pursuant to (1) above based on the following criteria:

(a)   Conformity to Chapter 551, Florida Statutes, and Rule 61D-14, F.A.C.; and

(b)   Evidence that the following standards are met:

1.     An audit trail that permits the review of slot machine operations or the reconstruction of gross revenue transactions;

2.     The segregation of functions as referenced in Rule 61D-14.015(4), F.A.C.; and

3.     The inclusion of all forms or documents referenced in the submission or required by Chapter 551, Florida Statutes, and Rule 61D-14, F.A.C.

(6) A current version of the internal controls of the slot machine licensee shall be maintained in the accounting, slot, and surveillance departments of the slot machine licensee. The slot machine licensee shall maintain copies of previous internal controls pursuant to the requirements of Rule 61D-14.080, F.A.C. 

(7)   The slot machine licensee’s accounting internal controls shall include procedures for the establishment of a patron signature file if such a file is utilized by the slot machine licensee.

(8) Failure of the slot machine licensee to implement or comply with any internal control procedure required in Rule 61D-14, F.A.C., is a violation of this section.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(d), (1)(e), (1)(g), (1)(i), FS.

History – New _______.

61D-14.059 Slot Machine Licensee Personnel.

(1)   Each slot machine licensee shall maintain a level of staffing, supervision, and delineation of responsibilities of the organizational structure that ensures the proper operations as provided in the internal control procedures.

(2) The slot machine licensee’s internal controls shall provide for a pre-employment screening process for each prospective employee, including the following:

(a)   A completed employment application;

(b)   Documentation that prospective employees for supervisory, managerial or surveillance positions have skills, training and experience for the position; and

(c)  A reviewed credit report.

(3)  The slot licensee shall maintain a personnel file for each employee that shall contain without limitation the following:

(a)  The original employment application required by the slot licensee;

(b)  The initial credit report and all subsequent credit reports that shall be obtained at least every 24 months;

(c)  A copy of all occupational licenses issued by the division during employment;

(d)   A current detailed position deion that includes access rights granted to the employee relating to secure areas, keys, or information;

(e)   A chronological log of all positions held by the employee indicating the effective and termination date of each position;

(f)    All performance evaluations conducted by the slot licensee;

(g)   Documentation relating to performance issues such as promotions, demotions, reprimands, or separations;

(h)   The slot licensee shall ensure that persons in positions requiring professional occupational licenses satisfactorily complete Form DBPR PMW-3440, Professional or Business Employee Supplemental Information, which is adopted and incorporated by Rule 61D-15.001, F.A.C.; and

(i)    All federal and state income tax returns filed by the employee for the previous five years, if the employee is identified in Rule 61D-14.002(1)(e), F.A.C., or is required to hold a professional occupational license.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(g), (1)(i), FS.

History – New _______.

61D-14.060 Business Entities, Internal Controls and Personnel Records.

(1)  The slot machine licensee’s internal controls shall provide for screening of business entities supplying slot machine gaming related equipment and services, which shall include out-sourced general employment services, to the slot machine licensee or its affiliates including the following:

(a)   A reference check of the business entity from other gaming jurisdictions; and

(b)   Ensure the business entity has obtained a current occupational license.

(2)  The slot licensee shall maintain a file for each business referenced in (1) above that shall contain the following:

(b)     Documentation of the results of the reference check in (1) above;

(b)   A copy of the current business license issued by the division;

(c)   A list of the business entity’s employees who require an occupational license pursuant to Section 551.107(2)(a)3., Florida Statutes;

(d)   A copy of each contract the slot machine licensee has entered into with the business entity; and

(e)   A completed Form DBPR PMW-3430, Business Entity Internal Control Information, which is adopted and incorporated by Rule 61D-15.001, F.A.C.

(3)  Any business entity holding an occupational license shall conduct pre-employment screening referenced in Rule 61D-14.059(2),  F.A.C., for any employee that would be required to obtain an occupational license referenced in Rule 61D-14.005, F.A.C.  The documentation required for such employees shall be maintained in an office of the business entity located in this state or with a registered agent of the business entity located in this state.

(4)  Any business entity holding an occupational license shall maintain a file for each of its employees, in compliance with Rule 61D-14.059(3), F.A.C.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(d), (1)(g), (1)(i), FS.

History – New _______.

61D-14.061 Slot Cash Storage Boxes.                     

(1)   Each slot cash storage box shall:

(a)   Have two separate locks that shall only be opened by keys that are different from each other;

(b)   Have a device that prohibits access to the contents of the slot cash storage box, when it is removed from the machine; and

(c)   Have an asset number that corresponds to the asset number of its assigned machine and is identifiable by the surveillance system referenced in Rule 61D-14.054, F.A.C.;

(2)   Emergency slot cash storage boxes that are used when the slot cash storage boxes of a specific machine are not available shall be maintained without asset numbers, provided:

(a)   The word “emergency” is permanently imprinted, affixed or impressed thereon; and 

(b)   The emergency slot cash storage box is temporarily marked with the asset number of the machine to which it is assigned.

(3)   Nothing in this rule shall be interpreted to prohibit the use of a bar code or similar device for tracking of slot cash storage boxes, so long as the requirements of this section are met.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(d), (1)(g), (1)(i), FS.

History – New _______.

61D-14.063 Count Rooms.

(1)   The slot machine licensee shall have within its facility a count room used exclusively for counting of funds received from the wagering operations of pari-mutuels and slot machines.  Counts conducted for slot machine operations shall be performed at separate times and independent of counts from pari-mutuel operations.

(2) The count room shall have:

(a)   Metal doors equipped with:

1.     Two separate locks, independent of one another and those of the slot cash storage boxes; and

2.     An alarm device, which audibly and visibly signals the surveillance monitoring room and the security department whenever a door to the count room is opened;

(b) Tables shall be constructed of clear lexan or similar material;

(c)   Audio-video surveillance equipment as referenced in Rule 61D-14.054(2)(b)3., F.A.C.; and

(d)   A fixed door type or hand-held metal detector to inspect all persons exiting the count room.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(d), (1)(g), (1)(i), FS.

History – New _______.

61D-14.065 Procedure for Slot Cash Storage Box Count.

(1)   Each slot machine licensee shall include in its internal control procedures:

(a)   A workflow diagram indicating all equipment used in the counting process;

(b)   A deion of all computer equipment used in the counting and recording process and other systems that communicate with computer equipment for purposes related to the counting of revenue;

(c) Procedures for controlling changes in software use in the counting and recording process, which provide for notification to the division at least 24 hours prior to the implementation of any proposed change; and

(d) Controls that prevent access to any count room information by anyone outside of the count room until the entire count process is concluded.

(2) Pre-count requirements in the internal controls shall include:

(a)   Notification to the surveillance department to make an audio-visual recording of the count process;

(b)   Procedures providing for a count team including a professional occupational licensee supervisor and at least two team members who shall also be present, with one team member being the count recorder; 

(c)   All persons present in the count room during the counting process shall wear as outer garments, only a full-length, one-piece, pocket-less garment with openings only for the arms, feet, and neck;

(d)   No person present shall carry any items into the count room; and

(e)  The count room supervisor shall record, in writing the name and license number of each member of the count team, as well as any entries and exits of the count room during the process by any persons.

 (3) Count process requirements in the internal controls shall include:

(a) Dual count and reconciliation;

(b) Segregation of bills, tickets, or vouchers and resolving any discrepancies;

(c) Handling of torn or mutilated bills, tickets, or vouchers;

(d) Utilization of counting machines;

(e)   The contents of each slot cash storage box shall be emptied on the count table and counted separately;

(f)  The inside of the slot cash storage box shall be held up to the full view of a surveillance camera, after which the slot cash storage box shall be locked and placed in the storage area for slot cash storage boxes;

(g)   As the contents of each slot cash storage box are counted, a count team member shall record information regarding the details of the count to include:

1. The asset number of the machine to which the slot cash storage box contents correspond;

2. The value of each denomination of currency counted;

3. The total value of all denominations of currency counted;

4. A listing of each slot machine ticket or voucher counted by validation number and the value of each gaming ticket counted; and

5. The gaming date of the items being recorded and the total number of all slot cash storage boxes opened and counted.

(h)   The doors to the count room shall be locked and remained locked except when the doors are opened as follows:

1.     At the start or conclusion of a count team employee’s shift;

2.     To permit slot cash storage boxes to be secured in the count room;

3.     To permit empty slot cash storage boxes or emergency slot cash storage boxes that were not part of the current count to be removed from the count room;

4.     To allow a main bank cashier or cage supervisor to enter the count room to perform his or her job responsibilities;

5.     In the event of an emergency; 

6.     To allow the count team to exit the room at the conclusion of the count; and

7.     To allow for scheduled breaks that shall be taken by the entire count team;

(i)    During the counting process, the count room supervisor shall notify the surveillance department whenever a count room door will be opened;

(j)    The count team members shall not leave the count room until all money is counted, verified, sorted, and totaled into the computer and cash drop funds are transferred to the cash vault. If a count team member leaves the count room, all count team members shall secure all of the bills, tickets and vouchers in the count room, and notify security that the count team needs to leave the count room.  All count team members shall be screened by security before leaving the count room.  No count team member shall remain in the count room alone. The count team members shall not reenter the count room until all count team members are present;

(k)   Any person leaving the count room prior to the completion of the entire count process, shall also record the time that he or she exited the count room, if the person exiting the count room is unable to sign the document due to an emergency, the count room supervisor shall record the person's name and time of exit and a notation describing the emergency on the document;

(l) After preparation of the slot cash storage box report, the count team members performing the banking functions and the count room supervisor shall sign the reports attesting to the accuracy of the information recorded thereon as evidence of their participation in the counting of the slot cash storage boxes; and

(m) If a discrepancy in excess of $500 occurs during verification of the count funds, it shall be brought to the immediate attention of the division and FDLE and a detailed written report explaining the problem and the corrective action taken shall be filed by the count room supervisor with the division within 48 hours of the conclusion of the count.

 (4) Post-count requirements in the internal controls shall include:

(a)   All bills, tickets and vouchers shall be presented in the count room to a main bank cashier or cage supervisor who, prior to having access to the information recorded on the slot cash storage box report and in the presence of a count team member, shall verify the bills, tickets and vouchers presented in accordance with the slot licensee’s internal controls.  The cashier or cage supervisor shall attest by signature for the custody of the bills, tickets, and vouchers;

(b)   Once all signatures required by this section have been obtained, all tickets and vouchers have been removed from the slot cash storage boxes, and any other supporting documentation has been completed, those documents shall be transported directly to the accounting department and shall not be available to any cashier’s cage personnel.  The accounting department shall record the figures and calculate the total drop for that gaming day. All coupons shall be received and processed by the accounting department and reconciled with the facility based central monitoring system;

(c)   A count room employee, in the presence of a count room supervisor, shall conduct an inspection of the entire count room and all counting equipment located therein to verify that no bills, tickets, or vouchers remain in the room; and

(d)   Cash from a previous count shall be locked and secured before another count can begin. 

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(d), (1)(g), (1)(i), FS.

History – New _______.

61D-14.067 Slot Booths and Change Machines.

(1)   Each slot cashier shall operate with an individual imprest inventory. At the end of each shift, the slot cashier assigned to the outgoing shift shall record on a daily slot cashier’s count sheet maintained by the slot machine licensee, the face value of each slot booth inventory item counted and the total opening and closing slot booth inventories and shall reconcile the total closing inventory with the total opening inventory.

(2)   At the end of each gaming day, a copy of the daily slot cashiers' count sheets for that gaming day shall be forwarded to the accounting department.

(3)   The slot booth inventory shall be used to supply change persons with an imprest inventory of bills, tickets or vouchers.  The slot booth inventory shall also be used to provide a change person with bills, tickets, and vouchers in exchange for an equal amount of any combination of bills, tickets, or vouchers.

(4)   The slot booth inventory shall be used to supply any mechanical, electrical or other device which operates independently of a slot machine and which, upon insertion of a ticket or voucher, dispenses an amount of currency equivalent to the face value of the ticket or voucher, and which immediately upon exchange cancels the ticket or voucher with an imprest inventory of slot tickets.

(5) A slot attendant shall not be permitted to function as a slot change person.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(d), (1)(g), (1)(i), FS.

History – New _______.

61D-14.069 Accounting and Security Records.

(1) Each slot machine licensee shall maintain records of all transactions pertaining to the revenues and costs for its facility.

(2) General accounting records shall be on a double entry system of accounting with transactions recorded on the accrual basis that shall also be maintained as follows:

(a) The slot licensee shall maintain a uniform chart of accounts and accounting classification;

(b) The chart of accounts shall provide the classifications necessary to prepare standard financial statements; and

(c) The slot machine licensee shall not alter the account numbering system without prior written notification to the division. 

(3)   Supporting subsidiary records to be maintained by the slot machine licensee shall include:

(a)   Records detailing all complimentary items or services provided as required by Rule 61D-14.021, F.A.C.;

(b)   Records of all financial investments, advances, loans and receivable balances, due to the establishment; and

(c)  Records related to investments in real property and equipment.

(4) Prior to commencement of slot machine activities, the slot machine licensee shall submit to the division the name and location, bank account number and routing information of a financial institution for collection and distribution of slot machine gaming revenue.  The financial institution shall be a bank or trust company authorized to do business in Florida.  The bank account shall be used exclusively for the deposit and distribution of slot machine gaming revenues that shall not be commingled with any other funds. 

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(d),(1)(e), (1)(g), (1)(i), FS.

History – New _______.

61D-14.072 Cashier’s Cage, Satellite Cages, Vaults, and Accounting Controls.

(1) Each slot machine licensee shall have on or immediately adjacent to the designated slot machine gaming area a physical structure known as a cashier’s cage ("the cage") to house the cashiers and to serve as the central location for the following:

(a)   The custody of the cage inventory comprising currency including patrons' deposits, and of forms, documents, and records normally associated with the operation of a cage;

(b)   The custody and exchange of currency, electronic cards, forms, documents and records normally generated or utilized by cashiers, change persons, and slot attendants;

(c)   The responsibility for the overall reconciliation of all documentation generated by cashiers, slot cashiers, change persons, and slot attendants; and

(d)   The receipt of currency, tickets or vouchers from the count room in conformity with this document.

(2) The cage shall be designed and constructed to provide security for the materials housed therein and the activities performed therein; such design and construction shall provide for the following:

(a) Fully enclosed except for openings through which materials such as cash, records, and documents can be passed to service the public and slot booths;

(b) Manually triggered silent alarm systems for the cage, its ancillary office space and any related vault, which alarm systems shall be connected directly to the monitoring rooms of the surveillance system and the security department office;

(c)   Double door entry and exit system that shall not permit a person to pass through the second door until the first door is securely locked. In addition:

1.     The first door of the double door entry and exit system shall be controlled by the security department. The second door of the double door entry and exit system shall be controlled by the cashier’s cage;

2.     The system shall have surveillance camera coverage which shall be monitored by the surveillance department; and

3.     Any entrance to the cage that is not a double door entry and exit system shall be an alarmed emergency exit door only; and

(d) Separate locks on each door of the double door entry and exit system, the keys to which shall be different from each other.

(3) Each vault shall include the following:

(a)   A metal door with one key that shall be maintained and controlled by the cage.  The slot machine licensee shall establish a sign-in and sign-out procedure for removal and replacement of the key or an electronic lock release that can be activated by vault personnel inside the vault;

(b) An alarm device that signals the surveillance department whenever the door to the vault is opened; and

(c)   Surveillance cameras meeting the requirements in Rule 61D-14.054, F.A.C.

(4)   Vaults shall be under the control of the accounting department. The storage or removal of currency from vaults shall be documented, and the amount of currency in each vault shall be reconciled daily.

(5)   The cashiers assigned to an outgoing shift shall record on a daily cashier’s count sheet the face value of each cage inventory item counted and the total of the opening and closing cage inventories and shall reconcile the total closing inventory with the total opening inventory.

(6)   At the end of the slot machine licensee’s hours of operation for each day, a copy of the cashier’s count sheets and related documentation shall be forwarded to the accounting department for agreement with opening and closing inventories.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(d), (1)(g), (1)(i), FS.

History – New _______.

61D-14.073 Meter Readings.

(1) Accounting department employees shall at least once a month manually read and record all meters and reconcile those readings with the information on the facility based monitoring system.

(2) After preparation of the slot meter sheet each employee involved with its preparation shall sign the slot meter sheet attesting to the accuracy of the information.  The slot meter sheet shall be forwarded directly to the accounting department for comparison to the slot win sheet and calculation of slot machine statistics.

(3) Whenever there is a variance of more than two percent or more than $100 between the slot machine’s internal meters and the meters of the facility based monitoring system, the slot machine licensee shall investigate the cause of the variance and prepare and file an incident report documenting the variance with the controller, the director of surveillance, and the division. The incident report shall include:

(a) The date of the meter reading;

(b)   The date the report was filed;

(c)   The amount of the variance, by denomination, which shall be by total value;

(d)   The asset number of the machine involved;

(e)   The amount of the variance by bills, tickets, and/or vouchers;

(f)    An indication as to the cause of the variance with documentation attached to support the explanation; and

(g)   The signature and license number of the preparer.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(d), (1)(e), (1)(e), (1)(i), FS.

History – New _______.

61D-14.074 Security Requirements, System Access, and Firewalls.

(1)   The firewall application shall maintain an audit log and disable all communications and generate an error event if the audit log becomes full.  An audit log shall contain the following information:

(a) All changes to configuration of the firewall;

(b) All successful and unsuccessful connection attempts through the firewall; and

(c) The source and destination IP addresses, port numbers and MAC addresses.

(2) The facility based monitoring system shall not allow for remote access.  All access to the facility based monitoring system shall be conducted from within the slot machine licensee’s facility.

(3) Automated ticket redemption machines are only to be used for the purpose of accepting, validating and providing payment for tickets inserted.  Automated ticket redemption machines shall not incorporate other functions.   Automated ticket redemption machines shall use a communication protocol that shall not permit the automated ticket redemption machine to write directly to the system database and only process payments based on commands from the system. Automated ticket redemption machines shall meet the slot machine hardware requirements for security and player safety, as set forth in Rule 61D-14.022-044, F.A.C. 

(4) Automated ticket redemption machines shall be capable of detecting and displaying the following error conditions:

(a) Power loss or power reset;

(b) Interpretation of communication with the automated ticket redemption machine,

(c) Cash dispenser empty or timed out;

(d) RAM error;

(e) Low RAM battery;

(f) Ticket in jam;

(g) Door open;

(h) Bill acceptor stacker full;

(i) Bill acceptor door open;

(j) Bill stacker door open or bill stacker removed; and

(k) Printer errors.

(5)   The error conditions referenced in (4) shall illuminate the tower light alarm. The automated ticket redemption machine shall be able to recover to its prior operating condition.

(6) Error conditions listed in (4)(a)-(g) and (k) shall require a slot machine attendant to intervene and clear the error from the automated ticket redemption machine prior to the resumption of operation.

(7) There shall be a maximum ticket value of $500 that can be paid by an automated ticket redemption machine, per individual ticket.

(8) The automated ticket redemption machine shall maintain the following meters;

(a)   A “total in” meter that accumulates the total value of tickets or vouchers accepted by the automated ticket redemption machine; and

(b)   A “total out” meter(s) for payments issued by the machine. 

(c) Separate “out meters” shall report the value of all bills dispensed by denomination.

(9) A log shall be maintained in critical memory or on a paper log housed within the individual automated ticket redemption machine that consists of the following:

(a) An event log which shall record the following information about the ticket redeemed:

1. Date/time of redemption;

2. Amount of ticket; and

3. At least last 4-digits of validation number; and

(b) The automated ticket redemption machine shall maintain the most recent 35 events in the event log.

(10) Tickets may only be accepted by the automated ticket redemption machine when:

(a)  All communication links are intact;

(b) Tickets inserted into a automated ticket redemption machine shall be rejected in the event of a communication failure; and

(c) Payment shall only be made when the ticket is collected and physically housed within the bill stacker.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(d), (1)(g), (1)(i), FS.

History – New _______.

61D-14.075 Jackpot and Credit Meter Payouts Not Paid Directly From the Slot Machine.

(1) When a patron wins a jackpot that is not totally and automatically paid directly from the slot machine, an employee of the slot machine licensee shall prepare a manual jackpot payout slip or a system generated payout slip.

(2)   Manual jackpot payout slips shall be serially prenumbered forms. Each series of payouts shall be used in sequential order and the series of all payouts received by a slot machine licensee shall be accounted for by employees independent of the cashier's cage and the slot department.  System generated payout slips shall be sequentially numbered by the facility based monitoring system.  All original and duplicate void payouts shall be marked "void" and shall require the signature of the preparer and a slot attendant or supervisor.

(3)   Each series of manual jackpot payout slips shall be a three-part form and shall be inserted in a dispenser that shall be locked and shall permit an individual slip in the series and its copies to be written upon simultaneously while still in the dispenser and that shall discharge the original and duplicate while the triplicate remains in a continuous unbroken form in the dispenser.  Access to the triplicates shall be maintained and controlled at all times by employees responsible for controlling and accounting for the unused supply of forms, placing those forms in the dispenser and removing from the dispenser the triplicates remaining.

(4) When payouts are computer prepared, each series shall be a two-part form and shall be inserted in a printer that shall simultaneously print an original and a duplicate and store in a machine-readable form all information printed on the original and duplicate. The stored data shall not be susceptible to change or removal by any personnel after the preparation.

(5) The information which shall be included on every form and in all stored data for payout is the asset number of the slot machine on which the jackpot was registered, the total amount of the jackpot, the winning combination of reel characters constituting the jackpot, the date and time during which the jackpot occurred, the amount to be paid from cashier's cage, and the time of preparation of the jackpot payout.

(6)   All payouts to a patron as a result of winning a jackpot in excess of $10,000 shall be disbursed by the cashier’s cage directly to the patron, or to a supervisor who shall transport the winnings directly to the patron. 

(7)   Signatures attesting to the accuracy of the information contained on the original and duplicate of the payout shall be of the cashier/slot personnel who prepared the payout slip and a slot attendant or supervisor who observed the reel characters of the slot machine. A manager and a member of the security department shall also attest the payout if the amount of the jackpot is equal to or in excess of $10,000.

(8)   The original jackpot payout slip shall be forwarded to the accounting department for reconciliation with the triplicate or stored data. The duplicate jackpot payout slip shall be maintained by the cashier for recording on the slot win sheet, reconciliation with the meter reading stored on the slot meter sheet, and reconciliation with the triplicate or stored data.

(9)   Prior to the payment of a slot jackpot of $25,000 or more, an FDLE representative shall conduct an investigation, including verification check of game related storage media and that all documents are complete and legible.  The slot machine licensee shall utilize a verification device that is approved by the division as being an accepted device recognized by slot machine gaming jurisdictions for testing slot machines for regulatory compliance.   The jackpot shall only be awarded after the FDLE representative verifies compliance with this section.

(10) The accounting department shall verify that all jackpots are in compliance with Rule 61D-14, F.A.C.

(11) When a non-cash prize is offered as a slot machine jackpot or payout for winnings, the slot machine licensee shall make an equivalent cash option available to the patron.  For purposes of tax calculations, the amount of the equivalent cash option shall be used in the calculation of slot machine revenue.  Details of each cash/prize jackpot option transaction shall be included on Form DBPR PMW-3680, Slot Jackpot Prize/Cash Option Report, which is adopted and incorporated by Rule 61D-15.001, F.A.C.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(d), (1)(g), (1)(i), FS.

History – New _______.

61D-14.080 Retention, Storage and Destruction of Books, Records, and

Documents.

(1) All books, records and documents pertaining to the slot machine licensee's operations shall be:

(a)   Prepared and maintained in a complete, accurate and legible form;

(b)   Retained on site for a period of at least one year from the document’s creation and subsequently authorized to be maintained at another secure location for the time period specified in (3) below;

(c)   Maintained in areas that provide for a workspace for inspection during all hours of operation;

(d)   Organized and indexed in such a manner as to provide immediate accessibility; and

(e)   Destroyed only after expiration of the minimum retention period, except that the division shall, upon the written petition of any slot machine licensee, permit such destruction at an earlier date.

 (2) For the purposes of this section, "books, records and documents" shall mean any book, record or document pertaining to, prepared in or generated by the operation of the slot machine licensee or on its behalf including all forms, reports, accounting and financial records, ledgers, subsidiary records, computer generated data, internal audit records, correspondence including e-mail, personnel records, and its compulsive gambling program. This definition shall apply without regard to the medium through which the record is generated or maintained.

(3) All books, records and documents shall be retained by a slot machine licensee in accordance with the following schedules:

(a) The following books, records and documents shall be retained indefinitely unless destruction is requested by the licensee and authorized by the division:

1. Corporate records required by Rule 61D-14.085, F.A.C.;

2. Records of corporate investigations and due diligence procedures;

3. Current employee personnel files; and

4. A record of any book, record or document destroyed, identifying the particular book, record or document, the period of retention and the date of destruction;

(b) All other books, records and documents shall be retained by a licensee for a minimum of five years unless additional time is requested by the division or FDLE for audit or investigation; and

(c)   Tickets and vouchers shall be retained on site for a period of sixty (60) days, after which they are authorized to be stored in a secure location for a period of no less than a year.  The slot machine licensee shall provide for the retrieval of specific tickets or vouchers in its system of internal control procedures. 

(4)   For purposes of this section, the slot machine licensee shall retain original books, records and documents except for copies:

(a)   Of a document that was submitted to the division or FDLE;

(b)   That were copies when obtained by the slot machine licensee; or 

(c)   That contain original comments or notations or parts of multi-part forms. 

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(d), (1)(g), FS.

History – New _______.

61D-14.081 Monthly Remittance Reports.

 (1) Monthly remittance reports documenting the previous month’s slot machine gaming activity shall be due by the 5th calendar day of each month.  Each slot machine license shall file a Slot Operations Monthly Remittance Report, Form DBPR PMW-3660, and Slot Operations Cumulative Monthly Remittance Report, Form DBPR PMW-3670, which are adopted and incorporated by Rule 61D-15.001, F.A.C., with the division at 1940 North Monroe Street, Tallahassee, Florida 32399-1035.

 (2) When reporting credits on Forms DBPR PMW-3660 and 3670:

(a)   “Credits In” shall include all credits registered on the ‘in meter’ of a slot machine; and

(b)   “Credits Out” shall include all credits registered on the ‘out meter’ of a slot machine.

(3)   Each report to the division shall be received or postmarked not later than the required filing date referenced in (1).

(4)   Tickets or vouchers which remain unclaimed after 30 days shall be accounted for as taxable slot machine revenue reported as referenced in (1). 

(5)   Winnings withheld from an excluded person shall be accounted for as taxable slot machine revenue reported as referenced in (1). 

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(d), (1)(g), 551.106(3) FS.

History – New _______.

61D-14.082 Annual Financial Report.

(1)   Each slot machine licensee shall generate an annual financial report.  The annual financial report shall be based on the slot machine licensee’s audited financial statements, which shall be audited by an independent certified public accountant in accordance with generally accepted accounting and auditing standards.  The audited financial statements shall be used to generate the slot machine licensee’s annual financial report.

(2) The annual financial report shall be prepared on a comparative basis for the current and prior fiscal year.

(3) Two copies of the annual financial report shall be filed with the division no more than 120 days after completion of the slot machine licensee’s fiscal year.

(4) The annual financial reports shall be signed by the chief executive officer or chief gaming executive pursuant to Rule 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 to their knowledge the information contained in the report is accurate and complete.

(5) The annual financial report required by this section shall include a footnote reconciling and explaining any differences between the financial statements included in the slot machine licensee's annual financial report and the cumulative monthly remittance reports in Form DBPR PMW-3670, Slot Operations Cumulative Monthly Remittance Report, which is adopted and incorporated by Rule 61D-15.001, F.A.C.  Such footnote shall disclose any adjustments to:

(a) Revenues from the slot machines;

(b) Total costs and expenses; and

(c) Net income.

 (6) 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)   A report expressing that the slot machine licensee has followed in all material respects during the period covered by this examination, the system of internal accounting controls on file with the division. Whenever the slot machine licensee has materially deviated from the system of internal accounting controls on file with the division, the report shall enumerate any deviations and any areas of the system no longer considered effective, and shall make recommendations regarding improvements in the system of internal accounting control; and

(c)   Any corrective actions taken to deviations referenced in (b).

(7)   If 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, or another independent certified public accountant is engaged as principal accountant, the licensee shall file a report with the division within 48 hours of when such event occurs, setting forth the name and business address of the certified public accountant and the date of such resignation, dismissal, or engagement.

 (8) 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. 

(9) 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.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(d),(1)(e), (1)(g), FS.

History – New _______.

61D-14.083 Compliance with Federal Reporting Requirements.

(1)   A slot machine licensee shall comply with the requirements of 31 Code of Federal Regulations 103, or any other regulations promulgated under the Bank Secrecy Act, Public Law 91-508, as amended, codified at 12 United States Code 1829b, 12 United States Code 1951-1959, and 31 United States Code 5311-5332, that is related to the conduct of gambling.

(2)   Each slot machine licensee shall file a copy of any report required for compliance in (1) with FDLE in no more than forty-eight (48) hours of the completion of such report.

(3)   The slot machine licensee shall immediately inform FDLE of the occurrence of any suspicious activity that requires the filing of a Suspicious Activity Report by Casinos and Card Clubs, FinCEN Form 102 (April 2003), 31 United States Code 5318(g). 

(4)   Each slot machine licensee shall develop and implement within its internal control procedures a program to assure and monitor compliance with the requirements set forth in this section including:

(a)   Internal and/or external independent testing for compliance;

(b) Training of the slot machine licensee employees, including training in the identification of unusual or suspicious transactions; and

(c)   A employee assigned to assure compliance with the internal control adopted for this section.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(d), (1)(g), (1)(i), FS.

History – New _______.

61D-14.085 Records Regarding Ownership.

Each slot machine licensee shall maintain the following records: 

(1)   If a corporation:

(a)   A certified copy of the articles of incorporation and any amendments thereto;

(b)   A copy of the by-laws and amendments thereto;

(c)   A current list of officers and directors;

(d)   Minutes of all meetings of stockholders and directors;

(e)   A current list of all stockholders and stockholders of affiliates, including their names and the names of beneficial owners of shares held where any beneficial owner has an interest in five percent or more of the outstanding shares of any class of stock, the number of shares held by each and the date acquired;

(f)    A record of all transfers of stock;

(g)   A record of amounts paid to the corporation for issuance of stock and any capital contributions and dates of transactions;

(h)   A record, by stockholder, of all dividends distributed by the corporation; and

(i)    A record of all salaries, wages, and other remuneration, including perquisites, direct and indirect, paid during the calendar or fiscal year, by the corporation, to all officers, directors, and stockholders with an ownership interest at any time during the calendar or fiscal year, equal to or greater than five percent of the outstanding capital stock of any class of stock.

(2)   If a partnership including limited partnerships:

(a)   A schedule showing the amounts and dates of capital contributions, the names and addresses of the contributors, and percentage of interest in net assets, profits, and losses held by each partner;

(b)   A record of the withdrawals of partnership funds or assets;

(c)   A record of salaries, wages, and other remuneration, including perquisites, direct and indirect, paid to each partner during the calendar or fiscal year; and

(d)   A copy of the partnership agreement and certificate of limited partnership, if applicable.

(3)   If a limited liability company:

(a)   Certificates of formation, amendment, and cancellation;

(b)   Operating agreement;

(c)   A current list of all members and managers;

(d)   A schedule showing the amounts and dates of contributions by members, the names and addresses of the contributors, and percentage of interest in net assets, profits, and losses held by each member and manager;

(e)   A record of the distributions of limited liability company funds or assets; and

(f)    A record of salaries, wages, and other remuneration (including prequisites), direct and indirect, paid to each member and manager during the calendar or fiscal year.

(4)   If a sole proprietorship:

(a)   A schedule showing the name and address of the proprietor and the amount and date of his original investment;

(b)   A record of dates and amounts of subsequent additions to the original investment and withdrawals there from; and

(c)   A record of salaries, wages, and other remuneration, including perquisites, direct or indirect, paid to the proprietor during the calendar or fiscal year.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(a), (1)(b), (1)(g), FS.

History – New _______.

61D-14.086 Annual Compliance Audit.

In addition to the audit required by Rule 61D-14.082, F.A.C., each slot machine licensee shall file an audit report to comply with the requirements of Section 551.104(8), Florida Statutes.  The audit shall contain recommendations of all findings and observations made by the slot licensee’s internal audit function referenced in Rule 61D-14.015(2)(f), F.A.C.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(d), (1)(g), 551.104(8), FS.

History – New _______.

61D-14.087 Response to Division Reports and Audits.

A written response shall be provided by the slot machine licensee or occupational licensee within 30 days of the date of issuance of any division report or audit finding by the slot machine licensee.  

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103 (1)(d), (1)(g), 551.104(8), FS.

History – New _______.

61D-14.090 Prohibited Acts.

(1)   No person shall engage in conduct that resists, obstructs, or opposes a division or FDLE employee in the performance of his or her duties and responsibilities.

(2)   No person shall conspire with, solicit, aid, abet, counsel, hire, or procure any other person or persons to engage in a violation of Chapter 551, Florida Statutes, or Rule 61D-14, F.A.C., nor shall he or she commit any such act on his or her own.

Specific Authority 551.103(1), 551.122 FS.

Law Implemented 551.103(1)(d),(1)(e),(1)(g),(1)(h), (1)(i) (2),(3),(4) FS.

History – New _______.


NAME OF PERSON ORIGINATING PROPOSED RULE: David J. Roberts, Director, Division of Pari-Mutuel Wagering.
NAME OF SUPERVISOR OR PERSON WHO APPROVED THE PROPOSED RULE: Simone Marstiller, Secretary, Department of Business and Professional Regulation.
DATE PROPOSED RULE APPROVED BY AGENCY HEAD: 04-19-06
DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAW: 02-03-06, 02-24-06.