CopyCited 10 times | Published | Supreme Court of Florida | 23 Fla. L. Weekly Supp. 485, 1998 Fla. LEXIS 1824, 1998 WL 650595
...To me, the statutory scheme to conduct bingo under section
849.0931 is analogous to the scheme under chapter 550, Florida Statutes (1997), regarding pari-mutuel wagering, such as betting on horseracing. A permit to conduct pari-mutuel operations may be *204 granted to qualifying organizations under section
550.054....
CopyCited 3 times | Published | Florida 1st District Court of Appeal | 2013 WL 1923751, 2013 Fla. App. LEXIS 7682
...Because the Act is a special law unconstitutionally enacted in the guise of a general law, as shown through undisputed evidence in the record, we conclude that the trial court should have granted an earlier motion for summary judgment by Appellants. I.FACTS The Act added the following text to section 550.054, Florida Statutes, effective July 1, 2010: (14)(a) Any holder of a permit to conduct jai alai may apply to the division to convert such permit to a permit to conduct greyhound racing in lieu of jai alai if: 1....
...nd subject to such provisions before a conversion pursuant to this section occurred. Ch. 2009-170, § 6 at 1777-78, Laws of Fla. Appellees West Volusia Racing, Inc., and License Acquisitions applied for the conversion of their jai-alai permits under section 550.054(14)(a) on the day the Act became effective....
...Shortly thereafter, Appellant Debary instituted this declaratory judgment action. Appellant Cos-ta later joined the suit as an additional plaintiff. Appellants contended below, and now argue on appeal, that the Act is a special law because the criterion specified in section 550.054(14)(a)l permanently closes the class of permits eligible for conversion. This criterion provides that a permit is not eligible unless it is “located in a county in which the division has issued only two pari-mutuel permits pursuant to [section 550.054].” § 550.054(14)(a)l....
...rsion absent a change in the law. Seeking summary judgment, Debary and Costa supported this contention with the deposition testimony of Jim Barnes, whose position with the Division requires him to process the applications for permit conversion under section 550.054(14)(a). Barnes opined that a permit cannot qualify for conversion under section 550.054(14)(a) unless it is located in a county that has exactly two permits issued under section 550.054 (no more and no fewer)....
...Jai-alai permits, including those recently converted under the Act, exist in nine Florida counties: Broward, Gadsden, Hamilton, Hillsborough, Marion, Miami-Dade, Palm Beach, St. Lucie, and Volusia. Of these counties, only Marion, Palm Beach, and Volusia have precisely two permits that have been issued under section 550.054. Three counties have only one such permit, and the remaining counties have more than two. The three counties with one section 550.054 permit, which is a jai-alai permit, are Gadsden, Hamilton, and St....
...He explained that Marion County does not qualify for conversion because there is no greyhound permit in the county with which the jai-alai permit could pair. This opinion is apparently based on the assumption that no jai-alai permitholder would convert its permit under section 550.054(14)(a) unless the permitholder could enter into a leasing arrangement with another greyhound facility and take advantage of the card-room provision of section 550.054(14)(b). Barnes also confirmed, however, that Marion County’s jai-alai permit is active. Barnes’ testimony indicates that the issuance of new section 550.054 permits in the counties with a jai-alai permit that is currently the only section 550.054 permit in the county would be legally impossible due to restrictions contained in section 550.054(2)....
...This provision prohibits the issuance of a permit “to conduct horse-races, harness horse races, or dograces at a location within 100 miles of an existing pari-mutuel facility, or for jai alai within 50 *162 miles of an existing pari-mutuel facility.” § 550.054(2), Fla. Stat. (2010). According to Barnes, only two locations exist in Florida where a new pari-mutuel facility can be located consistently with the mileage restriction of section 550.054(2)....
...One such location is in an unspecified county in the Panhandle, and the other is in Dixie County. After acknowledging these locations, Barnes confirmed that a single new pari-mutuel facility in either location would not bring the county within the geographical requirements of section 550.054(14), because the county would need two section 550.054 permits to qualify and neither county has an existing facility. Ultimately, Barnes confirmed that no counties can come within the reach of section 550.054(14)(a)l, because of either the buffer requirement of section 550.054(2) or “other factors such as being the only permit in the county.” License Acquisitions urged the trial court to read subsections (a) and (b) of section 550.054(14) together to determine if the law can be applied to others in the future....
...ith particular attention to the parimutuel legislation context; decide whether subsection (b) should play a part in classifying the law as special or general; and then resolve disagreements between the parties concerning the proper interpretation of section 550.054(14)(a)1....
...e notice of intent to enact the law or conditioning the law’s effectiveness upon a referendum of the electors of the areas affected. There is no dispute that the Legislature failed to follow this requirement in passing the Act. At issue is whether section 550.054(14) is actually a special law passed in the guise of a general law....
...s of one another. Id. at 619 . The three tracks to which the law applied when enacted were able to exist in such proximity to one another because they opened for business before the Legislature imposed the 100-mile-buffer requirement now embodied in section 550.054(2)....
...Such a possibility was insufficient to make the act at issue a general law. Id. B. Defining the Relevant Class for the Purpose of Determining Whether the Law Is Special Appellees assert that, to apply the foregoing principles concerning the open or closed nature of a class, we must consider subsections (a) and (b) of section 550.054(14) together....
...ons. The two subsections may work together as a practical matter, but nothing in the statutory language indicates that a jai-alai permitholder is prohibited from converting the permit under subsection (a) without taking advantage of the remainder of section 550.054(14). On the contrary, section 550.054(14)(b) provides that the holder of a permit converted under subsection (a) “may” relocate and operate a remote card room as long as it meets other conditions. It is legally possible for a jai-alai permit-holder to take advantage of subsection (a) even though the restrictions in subsection (b) may prevent it from obtaining the full extent of the benefits available under section 550.054(14) as a whole....
...The effect of making a law applicable to a closed class without providing for advance notice or a referendum does not change simply because the class is recognized in the same statute as an open class. C. The Meanings of “Only” and “Has Issued” The language at issue within the classification set forth in section 550.054(14)(a) embodies the requirement that a permit seeking conversion be “located in a county in which the division has issued only two pari-mutuel permits pursuant to this section.” The parties have conflicting interpretations of both...
...Hackley,
95 So.3d 92, 95-96 (Fla.2012). Although we may question the purpose of focusing on the number of permits that have ever been issued, this requirement is not absurd or at odds with any expressed legislative intent. In fact, this interpretation comports with the remainder of section
550.054(14)(a), which uses the historical consideration of whether a permit has ever been converted as one criterion for permit conversion....
...ion was arbitrary because “the descriptive technique [was] employed merely for identification rather than classification”). Barnes unequivocally testified that there are exactly two counties in Florida that currently qualify for conversion under section 550.054(14)(a)....
...he law is still “one relating to, or designed to operate upon, particular persons or things.” Harris,
163 So. at 240 (defining “special law”). Barnes’ uncontested testimony establishes conclusively that, under the current state of the law, section
550.054(14)(a) has the potential of applying to three specific counties in Florida and no others. No counties other than Marion, Palm Beach, and Volusia had only two section
550.054 permits, including one jai-alai permit, either on the effective date of the Act or at the time of Barnes’ deposition. Three counties, St. Lucie, Hamilton, and Gadsden, had only one permit, which was the jai-alai permit. However, Gadsden was ineligible because its permit had already been converted, which violates the criterion specified in section
550.054(14)(a)2. St. Lucie and Hamilton Counties might qualify theoretically, but only if a new permit is issued in one of those two counties pursuant to section
550.054. Barnes’ testimony indicates that such an occurrence is legally impossible given the buffer requirement of section
550.054(2). According to Barnes, only two counties in Florida have a location consistent with the mileage restriction of section
550.054(2), and there is no existing pari *168 mutuel permit in either of those counties. From this testimony, we conclude that these two locations are the only places where a new section
550.054 permit can legally be issued. These facts leave room for only one scenario in which a permit-holder might qualify for conversion under section
550.054(14)(a) in the future. One might open any pari-mutuel facility under a section
550.054 permit in one of the two locations Barnes identified, and a new jai-alai facility might open fifty or more miles from that location, but still in the same county, fall dormant, and then apply for conversion. This possibility is merely technical, if it exists at all, and constitutes a highly contrived scenario that is insufficient to justify a conclusion that the class established by section
550.054(14)(a) is open. Appellees’ argument that counties with more than two permits at the present time might fall under the category of counties referenced in section
550.054(14) (a) 1 if a permit is revoked by the Division or acquired by another permitholder is misguided. Such a scenario would not change the number of permits that have been issued in any county. The same three counties would still be the only counties in this state with a presently existing jai-alai permit where the Department has issued only two section
550.054 permits. Barnes’ testimony indicates that the counties presently having only one permit will not be issued new permits due to the mileage restrictions of section
550.054(2). Therefore, the only additional permits that might ever comply with the criteria of section
550.054(14)(a) are those that do not yet exist....
...will come into existence and proceed to meet the remaining requirements of the class. Because the undisputed material facts establish that there is no reasonable possibility that any permits other than those that have either already converted under section 550.054(14)(a) or the one that may convert if it falls dormant for ten years, we conclude that chapter 2009-170, section 6, is a special law....
...ns’ evidence was sufficient to show the absence of a genuine issue of material fact as to the reach of subsection (b) or whether Appellants’ counter evidence was sufficient to overcome such a showing. . None of the parties have acknowledged that section 550.054(14)(a)l may be applied to Marion County in the future....
CopyCited 3 times | Published | Florida 1st District Court of Appeal
...ng tracks within a twenty-five mile radius of each other. However, these conditions do not exist at present, because the other sections of the Pari-Mutuel Wagering Act now prohibit the issuance of permits for horse racing tracks this close together. Section 550.054(2) states in part, "[A]n application may not be considered, nor may a permit be issued by the division or be voted upon in any county, to conduct horse races, harness horse races, or dograces at a location within one hundred miles of an existing pari-mutuel facility. . . ." § 550.054(2), Fla....
...ithin twenty-five miles of each other. Because new horse racing tracks would have to be at least one hundred miles apart, the conditions that trigger the statutory prohibition against intertrack wagering in section
550.615(6) will not be replicated. Section
550.054 was enacted in 1992 and has been in effect continuously since then to prohibit the issuance of a permit to conduct horse races within one hundred miles of an existing pari-mutuel wagering facility....
CopyCited 1 times | Published | Supreme Court of Florida | 32 Fla. L. Weekly Supp. 542, 2007 Fla. LEXIS 1597, 2007 WL 2492308
...acks within a twenty-five mile radius of each other. However, these conditions do not exist at present, because the other sections of the Pari-Mutuel Wagering Act now prohibit the issuance of *806 permits for horse racing tracks this close together. Section 550.054(2) states in part, “[A]n application may not be considered, nor may a permit be issued by the division or be voted upon in any county, to conduct horse races, harness horse races, or dograces at a location within one hundred miles of an existing pari-mutuel facility....” § 550.054(2), Fla....
...ithin twenty-five miles of each other. Because new horse racing tracks would have to be at least one hundred miles apart, the conditions that trigger the statutory prohibition against intertrack wagering in section
550.615(6) will not be replicated. Section
550.054 was enacted in 1992 and has been in effect continuously since then to prohibit the issuance of a permit to conduct horse races within one hundred miles of an existing pari-mutuel wagering facility....
CopyCited 1 times | Published | Florida 1st District Court of Appeal | 2011 Fla. App. LEXIS 1428, 2011 WL 362416
...Finally, we have not overlooked the Division’s argument that this case is moot based on the recent changes in the law *1163 regarding quarter horse racing. See Ch. 2010-29, § 5, at 295, Laws of Fla. (making applications for quarter horse permits subject to section 550.054(2), which provides that an application may not be considered, or a permit issued, to conduct races at a location within 100 miles of an existing pari-mutuel facility)....
CopyPublished | Florida 1st District Court of Appeal
...Miami-Dade and Broward Counties,
seventeen other counties currently have pari-mutuel facilities thereby making them
the only ones eligible for slot machines because statutory locational restrictions
prevent new facilities absent legislative action. § 550.054(2), Fla....
CopyPublished | Florida 1st District Court of Appeal
...Gretna Racing correctly notes that other than Miami-Dade and Broward Counties, seventeen other counties currently have parimutuel facilities thereby making them the only ones eligible for slot machines because statutory locational restrictions prevent new facilities absent legislative action. § 550.054(2), Fla....
CopyPublished | Supreme Court of Florida | 2014 WL 6675441
...This case is before the Court on appeal from a decision of the First District
Court of Appeal, Debary Real Estate Holdings, LLC v. State, Department of
Business & Professional Regulation, Division of Pari-Mutuel Wagering,
112 So.
3d 157 (Fla. 1st DCA 2013), which held section
550.054(14)(a), Florida Statutes
(2010), to be an invalid special law. This Court has jurisdiction of the appeal
under article V, section 3(b)(1) of the Florida Constitution. For the following
reasons, we reverse the First District and hold that section
550.054(14)(a) is a valid
general law.
FACTS
Appellants, the Department of Business and Professional Regulation,
Division of Pari-Mutuel Wagering (DBPR), License Acquisitions, LLC, and West
Volusia Racing, Inc., f/k/a Volusia Jai-Alai, Inc., appeal the First District’s per
curiam decision declaring section
550.054(14)(a) to be invalid as a special law
enacted without either providing advance notice of intent to enact the law or
conditioning the law’s effectiveness upon a referendum of the electors of the areas
affected in violation of article III, section 10, of the Florida Constitution. Based on
this ruling, the district court concluded that the trial court should have granted the
appellees’ motion for summary judgment. Debary, 112 So. 3d at 160.
Effective July 1, 2010, section
550.054(14) provides as follows:
(14)(a) Any holder of a permit to conduct jai alai may apply to the
division [of pari-mutuel wagering] to convert such permit to a permit
to conduct greyhound racing in lieu of jai alai if:
1....
...550.6305(9)(d)
and (f) shall apply to any permit converted under this subsection and
shall continue to apply to any permit which was previously included
under and subject to such provisions before a conversion pursuant to
this section occurred.
§ 550.054(14), Florida Statutes (2010).
West Volusia Racing, Inc. (West Volusia Racing), and License Acquisitions,
LLC (License Acquisitions), applied for the conversion of their jai alai permits
under section 550.054(14)(a) on the day section 550.054 became effective.
Approximately three weeks later, the DBPR granted the applications. Shortly
thereafter, Debary Real Estate Holdings, LLC (Debary), instituted a declaratory
judgment action alleging in pertinent part that section 550.054(14) is an
-3-
unconstitutional special law—a law designed to operate upon particular persons or
things, or one that purports to operate upon classified persons or things when
classificat...
...The
appellants argued that the statute is a general law—a law that operates uniformly
within a permissible classification and is not subject to the notice or referendum
requirements of article III, section 10, of the Florida Constitution. Specifically,
Debary alleged that section 550.054(14)(a)1....
...Debary subsequently amended its complaint to add an additional plaintiff.
The appellees then filed a motion for summary judgment supporting their
contention that the statute was a special law with the following facts. At the time
of the statute’s enactment, there were twenty-one total section 550.054 permits
existing in nine counties in Florida, eleven of which were jai alai permits....
...West
Volusia Racing and License Acquisitions held jai alai permits that were eligible for
conversion at the time of the statute’s enactment because the permits were dormant
for ten years and were located in counties where the DBPR had issued exactly two
section 550.054 permits, which include permits for greyhound racing, jai alai,
-4-
thoroughbred horse racing, and harness horse racing....
...time of the statute’s enactment
and no other permits would ever be eligible for conversion. As a result, the
appellees argued at the trial court level, to the First District, and here on appeal that
two permits met all the criteria set forth in section 550.054(14)(a) at the time the
statute was enacted, and that no reasonable possibility exists that any other permits
will ever qualify for conversion absent a change in the law due to the restriction in
subsection (14)(a)1....
...The trial court denied the
appellees’ motion for summary judgment.
The appellees then sought leave to amend their first amended complaint,
which was granted.1 Thereafter, License Acquisitions moved for summary
judgment regarding the allegation that section 550.054(14)(a) was an
1. In the second amended complaint, the appellees requested: (1) the
issuance of a writ of quo warranto directed to the DBPR because it lacked
authority under section 550.054(14)(a) to convert the pari-mutuel permits held by
License Acquisitions and West Volusia Racing; (2) the issuance of a writ of quo
warranto directed to West Volusia Racing to prevent it from exercising any rights
or privileges under th...
...application is either void or voidable; (5) the issuance of a declaration that West
Volusia Racing did not qualify for conversion and the order granting the
conversion application is either void or voidable; and (6) the issuance of a
declaration that section 550.054(14)(a) is an unconstitutional special law.
-5-
unconstitutional special law, arguing that the statute was a general law because
sections 550.054(14)(a) and (b), when read together, created a classification
rationally related to the purpose of the statute because the statute would be capable
of application to additional parties....
...Finally, the court stated that the standard
for determining the openness of the class is whether there is a reasonable
possibility that others will join the class in the future. Id.
Turning to the appellants’ arguments, the First District rejected the argument
that subsections (a) and (b) of section 550.054(14), read together, were the relevant
classification for determining whether the law was a special or general law....
...always be paired with an open class to steer clear of constitutional challenges.
This determination was not challenged here on appeal.
-7-
The First District then discussed the meanings of “only” and “has issued” as
used in section 550.054(14)(a)1....
...alai permits may be converted to greyhound permits. Accordingly, the court held
that the statute was an unconstitutional special law because there was no
reasonable possibility that any other permits would join the class. Id.
On appeal to this Court, the appellants contend that section 550.054(14)(a) is
a valid general law, arguing that the First District declared the statute invalid
because it misinterpreted the words “has issued” and “only” in section
550.054(14)(a)1....
...at 809.
The parties do not dispute that the Legislature did not provide notice of its
intent to enact the statute or condition its effectiveness on a referendum of the
electors of the areas affected. Thus, the issue on appeal to this Court is whether
section 550.054(14)(a) is unconstitutional as a special law passed under the guise
of a general law....
...d at the
time of the trial court proceedings only applied to License Acquisitions and West
Volusia Racing. The basis of their divergence—rooted in their disagreement
regarding the definitions of “has issued” and “only” as they appear in section
550.054(14)(a)1.—is whether there is a reasonable possibility that the class is open
to additional parties. Section 550.054 provides:
(14)(a) Any holder of a permit to conduct jai alai may apply to
the division to convert such permit to a permit to conduct greyhound
racing in lieu of jai alai if:
1. Such permit is located in a county in which the division has
issued only two pari-mutuel permits pursuant to this section;
§ 550.054 (14)(a)1., Fla....
...The appellees, on the other hand, contend that the First
District correctly determined that the classification scheme is closed because
“only” means “precisely,” and “has issued” refers to the number of permits the
DBPR has historically issued. Thus, according to the appellees, section
550.054(14)(a) creates a classification scheme that is closed and will only ever
apply to License Acquisitions and West Volusia Racing. Accordingly, whether
- 12 -
section 550.054(14)(a) is a valid general law or an invalid special law is dependent
on the meaning of “only” and “has issued.”
Interpretations of “Only” and “Has Issued”
Here, the appellees argue that the s...
...Specifically, appellants argue that the total number of permits issued in a
given county could be reduced in the future by reduction of permits in those
- 14 -
counties by either revocation pursuant to sections
550.0251(10),
550.054(9)(b),
550.175, and
550.1815, Florida Statutes, or by merger (holder of one permit within
the same county acquires another permit and consolidates or abandons)....
...of or by itself;
without anything more; exclusive; [or] nothing else or more.” Black’s Law
Dictionary 982 (5th ed. 1979). Thus, according to the authorities listed above, the
definition of “only” indicates that the statutory condition in section 550.054 of
“only two permits” means “precisely two permits.”
An alternate definition of “only,” however, demonstrates that the
Legislature’s use of “only” is ambiguous and, therefore, subject to statutory
construction....
...Finally, section 641.65(3)(b),
Florida Statutes (2010), provides that members of a district managed-care
ombudsman committee “may serve only two consecutive terms,” which creates a
maximum amount of terms.
As demonstrated above, “only” as used in section 550.054(14)(a)1....
...Further, evidence in the record establishes that no other
counties have a jai alai permit holder who can convert the permit under the statute.
For instance, Gadsden County is ineligible due to a previous conversion that
disqualifies the permit holder. See § 550.054(14)(a)2. (“Such permit was not
previously converted from any other class of permit. . . .”). St. Lucie County,
Hamilton County, and two counties that currently do not have a single pari-mutuel
wagering permit under section 550.054 are also ineligible due to the mileage buffer
requirement of section 550.054(2), which makes it legally impossible to add a
second section 550.054 pari-mutuel permit. See § 550.054(2) (“In addition, an
application may not be considered, nor may a permit be issued by the division or
- 20 -
be voted upon in any county, to conduct horse races, harness horse races, or dog
races at a location within 100 miles of an existing pari-mutuel facility, or for jai
alai within 50 miles of an existing pari-mutuel facility. . . .”); § 550.054(14)(a)1.
(“Such permit is located in a county in which the division has issued only two pari-
mutuel permits pursuant to this section.”)....
...l of the remaining permits except one—
thus a total of ten of the eleven existing permits at the time of the statute’s
enactment—without a change in the law. Indeed, review of the record
demonstrates that Hillsborough County had three total section 550.054 permits,
one of which was a dormant jai alai permit; Gadsden County had a dormant jai alai
3. It is difficult to formulate a reasonable rationale to limit conversion of
permits to permit holders in counties that have exactly two section 550.054
permits, and prevent permit conversion to permit holders from counties that have
zero additional competing section 550.054 permits.
- 21 -
permit, but it previously converted and could never be eligible; Miami-Dade
County and Broward County both had two active jai alai permits, and five total
section 550.054 permits; St. Lucie County had one active jai alai permit and no
other section 550.054 permits; Hamilton County had one active jai alai permit and
no other section 550.054 permits; Marion County had one active jai alai permit and
no other section 550.054 permits4; and two other counties, possibly Bay County
and Dixie County, did not presently have any 550.054 permits and could legally
acquire a permit without violating the mileage restrictions in section 550.054(2)
noted above....
...was the openness of the class).
4. The record shows that Marion County has one jai alai permit and a
“limited intertrack wagering license.” As the appellees correctly note and the
appellants do not dispute, the record does not specify that this license is not a
section
550.054 permit, but it is, in fact, a license granted pursuant to section
550.6308. Thus, Marion County only has one section
550.054 permit.
- 22 -
Indeed, application of every enumerated condition for conversion set forth in
section
550.054(14)(a) demonstrates that the conditions are reasonably related to
the purpose of the statute. Section
550.054 is titled “Application for permit to
conduct pari-mutuel wagering.” Pari-mutuel wagering is a heavily regulated
industry in Florida....
...permits with the aim of maximizing revenue generation and limiting competition
within certain geographical areas.5
5. Review of other provisions in this section demonstrates the Legislature’s
interest in generating revenue and limiting geographic competition. For example,
section 550.054(2) establishes a mileage buffer, section 550.054(3)(h) requires
applicants to provide a business plan for the first year of operation, section
550.054(10) allows the DBPR to revoke a permit if construction of the facilities is
- 23 -
As noted previously, section 550.054(14)(a) provides:
(14)(a) Any holder of a permit to conduct jai alai may apply to
the division to convert such permit to a permit to conduct greyhound
racing in lieu of jai alai if:
1....
...during a period of 10 years immediately preceding his or her
application for conversion under this subsection.
The restriction regarding the number of permits in a county is consistent with the
Legislature’s policy of limiting the number of similar permits, section 550.054
permits in this case, within a given area....
...from
constantly converting their permits; the Legislature could have reasonably
determined that a more consistent business model would generate more revenues
than a constantly evolving one. For instance, greyhound racing, thoroughbred
lagging, section 550.054(13)(a) restricts transfer of a thoroughbred racing permit
or license if the transfer is intended to permit a licensee to change the horse
racetrack’s location subject to enumerated exceptions, and section 550.054(14)(b)
allows a holder of a converted jai alai permit, subject to further conditions, to move
the location within a thirty-mile radius, which enables the permit holder to conduct
pari-mutuel wagering and operate a cardroom....
...It is also
noted that in Gulfstream Park, this Court held that “a statute that appears to apply
to one . . . area at the time of enactment may still be considered a general law if it
could be applied to other . . . areas in the future.”
967 So. 2d at 808. As discussed
above, although section
550.054(14)(a) applied to two permits at the time of
enactment, it could be applied to other permits in the future.
Finally, we also find that the alternative interpretations of “has issued” and
“only” represent a fair constr...
...competition of pari-mutuel wagering activities within a given geographic area.
When “only” is used as an adjective in this context, it does not serve a discernible
purpose—no articulated legislative policy would be served by requiring exactly
two section 550.054 permits as a condition of conversion....
...a fair construction of the statute that is consistent with legislative intent and results
in a determination that the statute is a valid general law.
CONCLUSION
Based on the foregoing, we reverse the First District’s decision holding
section 550.054(14)(a) unconstitutional and direct the trial court to enter summary
judgment in favor of the appellees because we hold that section 550.054(14)(a) is a
valid general law in which the classification scheme reasonably relates to the
purpose of the statute.
It is so ordered.
PARIENTE, CANADY, POLSTON, and PERRY, JJ., concur.
LEWIS, J., dissents.
QUINCE, J., recused...
CopyPublished | Supreme Court of Florida
...This case is before the Court on appeal from a decision of the First District
Court of Appeal, Debary Real Estate Holdings, LLC v. State, Department of
Business & Professional Regulation, Division of Pari-Mutuel Wagering,
112 So.
3d 157 (Fla. 1st DCA 2013), which held section
550.054(14)(a), Florida Statutes
(2010), to be an invalid special law. This Court has jurisdiction of the appeal
under article V, section 3(b)(1) of the Florida Constitution. For the following
reasons, we reverse the First District and hold that section
550.054(14)(a) is a valid
general law.
FACTS
Appellants, the Department of Business and Professional Regulation,
Division of Pari-Mutuel Wagering (DBPR), License Acquisitions, LLC, and West
Volusia Racing, Inc., f/k/a Volusia Jai-Alai, Inc., appeal the First District’s per
curiam decision declaring section
550.054(14)(a) to be invalid as a special law
enacted without either providing advance notice of intent to enact the law or
conditioning the law’s effectiveness upon a referendum of the electors of the areas
affected in violation of article III, section 10, of the Florida Constitution. Based on
this ruling, the district court concluded that the trial court should have granted the
appellees’ motion for summary judgment. Debary, 112 So. 3d at 160.
Effective July 1, 2010, section
550.054(14) provides as follows:
(14)(a) Any holder of a permit to conduct jai alai may apply to the
division [of pari-mutuel wagering] to convert such permit to a permit
to conduct greyhound racing in lieu of jai alai if:
1....
...550.6305(9)(d)
and (f) shall apply to any permit converted under this subsection and
shall continue to apply to any permit which was previously included
under and subject to such provisions before a conversion pursuant to
this section occurred.
§ 550.054(14), Florida Statutes (2010).
West Volusia Racing, Inc. (West Volusia Racing), and License Acquisitions,
LLC (License Acquisitions), applied for the conversion of their jai alai permits
under section 550.054(14)(a) on the day section 550.054 became effective.
Approximately three weeks later, the DBPR granted the applications. Shortly
thereafter, Debary Real Estate Holdings, LLC (Debary), instituted a declaratory
judgment action alleging in pertinent part that section 550.054(14) is an
-3-
unconstitutional special law—a law designed to operate upon particular persons or
things, or one that purports to operate upon classified persons or things when
classificat...
...The
appellants argued that the statute is a general law—a law that operates uniformly
within a permissible classification and is not subject to the notice or referendum
requirements of article III, section 10, of the Florida Constitution. Specifically,
Debary alleged that section 550.054(14)(a)1....
...Debary subsequently amended its complaint to add an additional plaintiff.
The appellees then filed a motion for summary judgment supporting their
contention that the statute was a special law with the following facts. At the time
of the statute’s enactment, there were twenty-one total section 550.054 permits
existing in nine counties in Florida, eleven of which were jai alai permits....
...West
Volusia Racing and License Acquisitions held jai alai permits that were eligible for
conversion at the time of the statute’s enactment because the permits were dormant
for ten years and were located in counties where the DBPR had issued exactly two
section 550.054 permits, which include permits for greyhound racing, jai alai,
-4-
thoroughbred horse racing, and harness horse racing....
...time of the statute’s enactment
and no other permits would ever be eligible for conversion. As a result, the
appellees argued at the trial court level, to the First District, and here on appeal that
two permits met all the criteria set forth in section 550.054(14)(a) at the time the
statute was enacted, and that no reasonable possibility exists that any other permits
will ever qualify for conversion absent a change in the law due to the restriction in
subsection (14)(a)1....
...The trial court denied the
appellees’ motion for summary judgment.
The appellees then sought leave to amend their first amended complaint,
which was granted.1 Thereafter, License Acquisitions moved for summary
judgment regarding the allegation that section 550.054(14)(a) was an
1. In the second amended complaint, the appellees requested: (1) the
issuance of a writ of quo warranto directed to the DBPR because it lacked
authority under section 550.054(14)(a) to convert the pari-mutuel permits held by
License Acquisitions and West Volusia Racing; (2) the issuance of a writ of quo
warranto directed to West Volusia Racing to prevent it from exercising any rights
or privileges under th...
...application is either void or voidable; (5) the issuance of a declaration that West
Volusia Racing did not qualify for conversion and the order granting the
conversion application is either void or voidable; and (6) the issuance of a
declaration that section 550.054(14)(a) is an unconstitutional special law.
-5-
unconstitutional special law, arguing that the statute was a general law because
sections 550.054(14)(a) and (b), when read together, created a classification
rationally related to the purpose of the statute because the statute would be capable
of application to additional parties....
...Finally, the court stated that the standard
for determining the openness of the class is whether there is a reasonable
possibility that others will join the class in the future. Id.
Turning to the appellants’ arguments, the First District rejected the argument
that subsections (a) and (b) of section 550.054(14), read together, were the relevant
classification for determining whether the law was a special or general law....
...always be paired with an open class to steer clear of constitutional challenges.
This determination was not challenged here on appeal.
-7-
The First District then discussed the meanings of “only” and “has issued” as
used in section 550.054(14)(a)1....
...alai permits may be converted to greyhound permits. Accordingly, the court held
that the statute was an unconstitutional special law because there was no
reasonable possibility that any other permits would join the class. Id.
On appeal to this Court, the appellants contend that section 550.054(14)(a) is
a valid general law, arguing that the First District declared the statute invalid
because it misinterpreted the words “has issued” and “only” in section
550.054(14)(a)1....
...at 809.
The parties do not dispute that the Legislature did not provide notice of its
intent to enact the statute or condition its effectiveness on a referendum of the
electors of the areas affected. Thus, the issue on appeal to this Court is whether
section 550.054(14)(a) is unconstitutional as a special law passed under the guise
of a general law....
...d at the
time of the trial court proceedings only applied to License Acquisitions and West
Volusia Racing. The basis of their divergence—rooted in their disagreement
regarding the definitions of “has issued” and “only” as they appear in section
550.054(14)(a)1.—is whether there is a reasonable possibility that the class is open
to additional parties. Section 550.054 provides:
(14)(a) Any holder of a permit to conduct jai alai may apply to
the division to convert such permit to a permit to conduct greyhound
racing in lieu of jai alai if:
1. Such permit is located in a county in which the division has
issued only two pari-mutuel permits pursuant to this section;
§ 550.054 (14)(a)1., Fla....
...The appellees, on the other hand, contend that the First
District correctly determined that the classification scheme is closed because
“only” means “precisely,” and “has issued” refers to the number of permits the
DBPR has historically issued. Thus, according to the appellees, section
550.054(14)(a) creates a classification scheme that is closed and will only ever
apply to License Acquisitions and West Volusia Racing. Accordingly, whether
- 12 -
section 550.054(14)(a) is a valid general law or an invalid special law is dependent
on the meaning of “only” and “has issued.”
Interpretations of “Only” and “Has Issued”
Here, the appellees argue that the s...
...Specifically, appellants argue that the total number of permits issued in a
given county could be reduced in the future by reduction of permits in those
- 14 -
counties by either revocation pursuant to sections
550.0251(10),
550.054(9)(b),
550.175, and
550.1815, Florida Statutes, or by merger (holder of one permit within
the same county acquires another permit and consolidates or abandons)....
...of or by itself;
without anything more; exclusive; [or] nothing else or more.” Black’s Law
Dictionary 982 (5th ed. 1979). Thus, according to the authorities listed above, the
definition of “only” indicates that the statutory condition in section 550.054 of
“only two permits” means “precisely two permits.”
An alternate definition of “only,” however, demonstrates that the
Legislature’s use of “only” is ambiguous and, therefore, subject to statutory
construction....
...Finally, section 641.65(3)(b),
Florida Statutes (2010), provides that members of a district managed-care
ombudsman committee “may serve only two consecutive terms,” which creates a
maximum amount of terms.
As demonstrated above, “only” as used in section 550.054(14)(a)1....
...Further, evidence in the record establishes that no other
counties have a jai alai permit holder who can convert the permit under the statute.
For instance, Gadsden County is ineligible due to a previous conversion that
disqualifies the permit holder. See § 550.054(14)(a)2. (“Such permit was not
previously converted from any other class of permit. . . .”). St. Lucie County,
Hamilton County, and two counties that currently do not have a single pari-mutuel
wagering permit under section 550.054 are also ineligible due to the mileage buffer
requirement of section 550.054(2), which makes it legally impossible to add a
second section 550.054 pari-mutuel permit. See § 550.054(2) (“In addition, an
application may not be considered, nor may a permit be issued by the division or
- 20 -
be voted upon in any county, to conduct horse races, harness horse races, or dog
races at a location within 100 miles of an existing pari-mutuel facility, or for jai
alai within 50 miles of an existing pari-mutuel facility. . . .”); § 550.054(14)(a)1.
(“Such permit is located in a county in which the division has issued only two pari-
mutuel permits pursuant to this section.”)....
...l of the remaining permits except one—
thus a total of ten of the eleven existing permits at the time of the statute’s
enactment—without a change in the law. Indeed, review of the record
demonstrates that Hillsborough County had three total section 550.054 permits,
one of which was a dormant jai alai permit; Gadsden County had a dormant jai alai
3. It is difficult to formulate a reasonable rationale to limit conversion of
permits to permit holders in counties that have exactly two section 550.054
permits, and prevent permit conversion to permit holders from counties that have
zero additional competing section 550.054 permits.
- 21 -
permit, but it previously converted and could never be eligible; Miami-Dade
County and Broward County both had two active jai alai permits, and five total
section 550.054 permits; St. Lucie County had one active jai alai permit and no
other section 550.054 permits; Hamilton County had one active jai alai permit and
no other section 550.054 permits; Marion County had one active jai alai permit and
no other section 550.054 permits4; and two other counties, possibly Bay County
and Dixie County, did not presently have any 550.054 permits and could legally
acquire a permit without violating the mileage restrictions in section 550.054(2)
noted above....
...was the openness of the class).
4. The record shows that Marion County has one jai alai permit and a
“limited intertrack wagering license.” As the appellees correctly note and the
appellants do not dispute, the record does not specify that this license is not a
section
550.054 permit, but it is, in fact, a license granted pursuant to section
550.6308. Thus, Marion County only has one section
550.054 permit.
- 22 -
Indeed, application of every enumerated condition for conversion set forth in
section
550.054(14)(a) demonstrates that the conditions are reasonably related to
the purpose of the statute. Section
550.054 is titled “Application for permit to
conduct pari-mutuel wagering.” Pari-mutuel wagering is a heavily regulated
industry in Florida....
...permits with the aim of maximizing revenue generation and limiting competition
within certain geographical areas.5
5. Review of other provisions in this section demonstrates the Legislature’s
interest in generating revenue and limiting geographic competition. For example,
section 550.054(2) establishes a mileage buffer, section 550.054(3)(h) requires
applicants to provide a business plan for the first year of operation, section
550.054(10) allows the DBPR to revoke a permit if construction of the facilities is
- 23 -
As noted previously, section 550.054(14)(a) provides:
(14)(a) Any holder of a permit to conduct jai alai may apply to
the division to convert such permit to a permit to conduct greyhound
racing in lieu of jai alai if:
1....
...during a period of 10 years immediately preceding his or her
application for conversion under this subsection.
The restriction regarding the number of permits in a county is consistent with the
Legislature’s policy of limiting the number of similar permits, section 550.054
permits in this case, within a given area....
...from
constantly converting their permits; the Legislature could have reasonably
determined that a more consistent business model would generate more revenues
than a constantly evolving one. For instance, greyhound racing, thoroughbred
lagging, section 550.054(13)(a) restricts transfer of a thoroughbred racing permit
or license if the transfer is intended to permit a licensee to change the horse
racetrack’s location subject to enumerated exceptions, and section 550.054(14)(b)
allows a holder of a converted jai alai permit, subject to further conditions, to move
the location within a thirty-mile radius, which enables the permit holder to conduct
pari-mutuel wagering and operate a cardroom....
...It is also
noted that in Gulfstream Park, this Court held that “a statute that appears to apply
to one . . . area at the time of enactment may still be considered a general law if it
could be applied to other . . . areas in the future.”
967 So. 2d at 808. As discussed
above, although section
550.054(14)(a) applied to two permits at the time of
enactment, it could be applied to other permits in the future.
Finally, we also find that the alternative interpretations of “has issued” and
“only” represent a fair constr...
...competition of pari-mutuel wagering activities within a given geographic area.
When “only” is used as an adjective in this context, it does not serve a discernible
purpose—no articulated legislative policy would be served by requiring exactly
two section 550.054 permits as a condition of conversion....
...a fair construction of the statute that is consistent with legislative intent and results
in a determination that the statute is a valid general law.
CONCLUSION
Based on the foregoing, we reverse the First District’s decision holding
section 550.054(14)(a) unconstitutional and direct the trial court to enter summary
judgment in favor of the appellants because we hold that section 550.054(14)(a) is
a valid general law in which the classification scheme reasonably relates to the
purpose of the statute.
It is so ordered.
PARIENTE, CANADY, POLSTON, and PERRY, JJ., concur.
LEWIS, J., dissents.
QUINCE, J., recused...
CopyPublished | Florida 1st District Court of Appeal | 2017 WL 1239876, 2017 Fla. App. LEXIS 4567
...to convert
its permit to a permit to conduct a summer jai alai fronton.”
([E]mphasis supplied). Section
550.0745, Florida Statutes, creates an
exception to the general requirements to obtaining a pari-mutuel permit
found in section
550.054, Florida Statutes....