HF 1898

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to the State Lottery; authorizing the State Lottery to lease space for and
operate a casino in the main terminal of the Minneapolis-St. Paul International
Airport; appropriating money; amending Minnesota Statutes 2006, sections
349A.01, by adding a subdivision; 349A.10, subdivisions 2, 3, 5; 349A.11,
subdivision 1; 541.20; 541.21; 609.75, subdivision 3; 609.761, subdivision 2;
proposing coding for new law in Minnesota Statutes, chapter 349A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2006, section 349A.01, is amended by adding a
subdivision to read:

new text begin Subd. 3a. new text end

new text begin Casino net proceeds. new text end

new text begin "Casino net proceeds" means total revenues
received by the director from the operation of a casino under section 349A.17, less prizes
and winnings paid out and the capital and operating costs of the casino.
new text end

Sec. 2.

Minnesota Statutes 2006, section 349A.10, subdivision 2, is amended to read:

Subd. 2.

Deposit in prize fund.

(a) The director shall establish a lottery prize
fund outside the state treasury. The fund consists of all money deposited in it under this
subdivision and all interest earned thereon.

(b) The director shall deposit in the lottery prize fund, from gross receipts from the
sale of lottery tickets, an amount sufficient to pay lottery prizes new text begin , other than prizes and
winnings from the casino under section , new text end from the lottery prize fund according to
the following provisions:

(1) for games which require online terminal connections, the prizes paid in any fiscal
year must be at least 45 percent of gross receipts from those games in that fiscal year;

(2) for games which do not require online terminal connections, the prizes paid in any
fiscal year must be at least the following percentages of gross receipts from those games:

(i) 50 percent through fiscal year 1991;

(ii) 55 percent from July 1, 1991, to June 30, 1992; and

(iii) 60 percent thereafter.

Sec. 3.

Minnesota Statutes 2006, section 349A.10, subdivision 3, is amended to read:

Subd. 3.

Lottery operations.

(a) The director shall establish a lottery operations
account in the lottery fund. The director shall pay all costs of operating the lottery,
including payroll costs or amounts transferred to the state treasury for payroll costs, but not
including lottery prizes new text begin or costs of operating the casino under this section new text end , from the lottery
operating account. The director shall credit to the lottery operations account amounts
sufficient to pay the operating costs of the lottery new text begin other than casino operating costs new text end .

(b) Except as provided in paragraph (e), the director may not credit in any fiscal
year thereafter amounts to the lottery operations account which when totaled exceed
nine percent of gross revenue to the lottery fund in that fiscal year. In computing total
amounts credited to the lottery operations account under this paragraph the director shall
disregard amounts transferred to or retained by lottery retailers as sales commissions or
other compensation.

(c) The director of the lottery may not expend after July 1, 1991, more than 2-3/4
percent of gross revenues in a fiscal year for contracts for the preparation, publication,
and placement of advertising. new text begin This restriction does not apply to advertising for the casino
under section .
new text end

(d) Except as the director determines, the lottery is not subject to chapter 16A
relating to budgeting, payroll, and the purchase of goods and services.

(e) In addition to the amounts credited to the lottery operations account under
paragraph (b), the director is authorized, if necessary, to meet the current obligations of
the lottery and to credit up to 25 percent of an amount equal to the average annual amount
which was authorized to be credited to the lottery operations account for the previous three
fiscal years but was not needed to meet the obligations of the lottery.

new text begin (f) The director shall establish a casino operations account in the lottery fund.
The director shall credit to the casino operations account amounts sufficient to pay the
operating costs of the casino, including prizes and winnings at the casino. The director
shall pay from the casino operations fund all costs of operating the casino established
under section 349A.17, including payroll costs or amounts transferred to the state treasury
for payroll costs and all amounts paid out as prizes or winnings at the casino.
new text end

Sec. 4.

Minnesota Statutes 2006, section 349A.10, subdivision 5, is amended to read:

Subd. 5.

Deposit of net proceeds.

Within 30 days after the end of each month, the
director shall deposit in the state treasury the net proceeds of the lottery, which is the
balance in the lottery fund after transfers to the lottery prize fund and credits to the lottery
operations account new text begin and casino net proceeds new text end . Of the net proceeds, 40 percent must be
credited to the Minnesota environment and natural resources trust fund and the remainder
must be credited to the general fund.

Sec. 5.

Minnesota Statutes 2006, section 349A.11, subdivision 1, is amended to read:

Subdivision 1.

Lottery ticket; retailer.

The director, an employee of the lottery,
a member of the immediate family of the director or employee residing in the same
household may not:

(1) purchase a lottery ticket new text begin or participate in gambling at the casino established
under section 349A.17 new text end ; or

(2) have any personal pecuniary interest in any vendor holding a lottery procurement
contract, or in any lottery retailer; or

(3) receive any gift, gratuity, or other thing of value, excluding food or beverage,
from any lottery vendor or lottery retailer, or person applying to be a retailer or vendor, in
excess of $100 in any calendar year.

Sec. 6.

new text begin [349A.17] OPERATION OF CASINO.
new text end

new text begin Subdivision 1. new text end

new text begin Agreement. new text end

new text begin The director shall lease a facility within the main
terminal of the Minneapolis-St. Paul International Airport for the purpose of operating
a casino. The Metropolitan Airports Commission shall not unreasonably refuse to lease
space in the main terminal for this purpose.
new text end

new text begin Subd. 2. new text end

new text begin Types of gambling. new text end

new text begin The director shall provide for the types of gambling
to be conducted at the casino and game procedures subject to section . Section
, clause (2), does not apply to gambling conducted at the casino.
new text end

new text begin Subd. 3. new text end

new text begin Contracts. new text end

new text begin The director may contract with private vendors for goods and
services for the casino, consistent with the constitutional requirement that the casino be
state-operated. Contracts under this section are subject to section .
new text end

new text begin Subd. 4. new text end

new text begin Personnel. new text end

new text begin (a) The director may as necessary appoint personnel to operate
the casino according to section 349A.02, subdivision 6, and chapter 43A, except that all
employees will be in the unclassified service.
new text end

new text begin (b) No person or entity that holds a contract for the supply of goods or services to the
director may employ in any capacity that relates directly to casino operations, or have as a
partner, officer, or director, any person who has been convicted within the previous five
years of a felony or gross misdemeanor, any crime involving fraud or misrepresentation,
or any gambling-related offense. Failure by a contractor to comply with this requirement
is grounds for termination of the contract.
new text end

new text begin Subd. 5. new text end

new text begin Employee licenses. new text end

new text begin (a) For purposes of this subdivision, "employee"
means a person employed at the casino by a person or entity holding a contract with the
director to provide goods or services to the casino.
new text end

new text begin (b) The director shall by rule prescribe the occupations that the director determines
requires licensing in order to ensure the integrity of gambling at the casino, and the fee for
each licensing category. No person may be an employee at the casino in an occupation
covered by the director's rules unless the person has a license issued by the director for
that occupation.
new text end

new text begin (c) An application for a license under this subdivision must be accompanied by an
affidavit of qualification that the applicant has not (1) been convicted within the previous
five years of a felony or gross misdemeanor, a crime involving fraud or misrepresentation,
or a gambling-related offense, or (2) been determined to have violated a rule of the
director, the racing commission, the gambling control board, or a gambling-related
regulatory body in another state.
new text end

new text begin (d) The director shall investigate each applicant for a license under this subdivision
to the extent the director considers necessary and may request the assistance of and
may reimburse the division of alcohol and gambling enforcement in investigating
applicants. The director may by rule require that an applicant be fingerprinted or furnish
the applicant's fingerprints. The director may charge an applicant an investigation fee to
cover the cost of the investigation and shall from this fee reimburse the division of alcohol
and gambling enforcement for its share of the cost of the investigation. The director
may cooperate with national and international organizations and agencies in conducting
investigations. The director may by rule provide for examining the qualifications of an
applicant for the license being applied for. The director has access to all criminal history
data compiled by the Division of Alcohol and Gambling Enforcement on applicants and
licensees under this subdivision.
new text end

new text begin (e) If after compliance with this subdivision the director determines that an applicant
is not disqualified under paragraph (c) and that licensing the applicant is consistent with
the public health, welfare, and safety, the director shall issue a license to an applicant or
renew a license already issued. Licenses under this subdivision are valid for one year
from the date of issuance.
new text end

new text begin (f) The director may revoke or refuse to renew a license under this subdivision for
(1) conduct, including a violation of a law or rule that the director determines adversely
affects the integrity of gambling at the casino, and (2) intentionally making a false
statement in a license application. The director may suspend a license for a period of time
the director determines for a violation of law or rule.
new text end

new text begin (g) A license revocation or suspension under this subdivision for more than 90 days
is a contested case under sections to of the Administrative Procedure Act and
is in addition to criminal penalties imposed for a violation of law or rule. The director may
summarily suspend a license for more than 90 days prior to a contested case hearing where
it is necessary to ensure the integrity of gambling at the casino. A contested case hearing
must be held within 20 days of the summary suspension and the administrative law judge's
report must be issued within 20 days from the close of the hearing record. In all cases
involving summary suspension, the director must issue its final decision within 30 days
from receipt of the report of the administrative law judge and subsequent exceptions and
arguments under section .
new text end

new text begin Subd. 6. new text end

new text begin Prizes. new text end

new text begin A person who plays a game at the casino agrees to be bound by the
game procedures applicable to that game. The player acknowledges that the determination
of winnings is subject to the rules of the director, game procedures and claim procedures
established for that game, and any confidential or public validation procedures established
by the director for that game.
new text end

new text begin Subd. 7. new text end

new text begin Restrictions. new text end

new text begin (a) No person under the age of 18 years may play any game
at the casino or win a prize from any game at the casino.
new text end

new text begin (b) No person may be admitted to the casino who does not possess a valid ticket
issued in the person's name by an airline making regularly scheduled flights in and out
of the airport, for a flight with a departure time not more than 12 hours after admission
to the casino, or for a flight that has arrived not more than 12 hours before admission
to the casino.
new text end

Sec. 7.

Minnesota Statutes 2006, section 541.20, is amended to read:

541.20 RECOVERY OF MONEY LOST.

Every person who, by playing at cards, dice, or other game, or by betting on the
hands or sides of such as are gambling, shall lose to any person so playing or betting
any sum of money or any goods, and pays or delivers the same, or any part thereof, to
the winner, may sue for and recover such money by a civil action, before any court
of competent jurisdiction. For purposes of this section, gambling shall not include
pari-mutuel wagering conducted under a license issued pursuant to chapter 240, purchase
or sale of tickets in the state lottery, new text begin participation in gambling at the casino authorized
under section , new text end or gambling authorized under chapters 349 and 349A.

Sec. 8.

Minnesota Statutes 2006, section 541.21, is amended to read:

541.21 COMMITMENTS FOR GAMBLING DEBT VOID.

Every note, bill, bond, mortgage, or other security or conveyance in which the whole
or any part of the consideration shall be for any money or goods won by gambling or
playing at cards, dice, or any other game whatever, or by betting on the sides or hands
of any person gambling, or for reimbursing or repaying any money knowingly lent or
advanced at the time and place of such gambling or betting, or lent and advanced for any
gambling or betting to any persons so gambling or betting, shall be void and of no effect
as between the parties to the same, and as to all persons except such as hold or claim under
them in good faith, without notice of the illegality of the consideration of such contract or
conveyance. The provisions of this section shall not apply to: (1) pari-mutuel wagering
conducted under a license issued pursuant to chapter 240; (2) purchase of tickets in the
state lottery new text begin and casino gambling activities new text end under chapter 349A; (3) gaming activities
conducted pursuant to the Indian Gaming Regulatory Act, 25 U.S.C. 2701 et seq.; or (4)
lawful gambling activities permitted under chapter 349.

Sec. 9.

Minnesota Statutes 2006, section 609.75, subdivision 3, is amended to read:

Subd. 3.

What are not bets.

The following are not bets:

(1) A contract to insure, indemnify, guarantee or otherwise compensate another for a
harm or loss sustained, even though the loss depends upon chance.

(2) A contract for the purchase or sale at a future date of securities or other
commodities.

(3) Offers of purses, prizes or premiums to the actual contestants in any bona fide
contest for the determination of skill, speed, strength, endurance, or quality or to the bona
fide owners of animals or other property entered in such a contest.

(4) The game of bingo when conducted in compliance with sections 349.11 to
349.23.

(5) A private social bet not part of or incidental to organized, commercialized,
or systematic gambling.

(6) The operation of equipment or the conduct of a raffle under sections 349.11 to
349.22, by an organization licensed by the Gambling Control Board or an organization
exempt from licensing under section 349.166.

(7) Pari-mutuel betting on horse racing when the betting is conducted under chapter
240.

(8) The purchase and sale of state lottery tickets new text begin and participation in the
state-operated casino new text end under chapter 349A.

Sec. 10.

Minnesota Statutes 2006, section 609.761, subdivision 2, is amended to read:

Subd. 2.

State lottery.

Sections 609.755 and 609.76 do not prohibit the operation of
the state lottery or the sale, possession, or purchase of tickets for the state lottery new text begin or casino
gambling activities new text end under chapter 349A.

Sec. 11. new text begin APPROPRIATION.
new text end

new text begin The amount needed for capital, acquisition, and initial operating costs of the casino
authorized under this act is appropriated from the general fund to the director of the State
Lottery. The director must repay this appropriation from the State Lottery fund, with
interest at the average monthly rate on invested treasurer's cash, not later than three
months after the first date of operation of the casino.
new text end