HF 4118

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

A bill for an act
relating to gambling; proposing a constitutional amendment to allow a
state-operated casino which may be managed by a private contractor; expanding
duties of the director of the State Lottery to include operation of a casino;
providing for deposit of net casino proceeds in a capital improvement fund for
capital improvements of the state and educational infrastructure; amending
Minnesota Statutes 2006, sections 349A.02, subdivision 3; 349A.07, by adding a
subdivision; 349A.10, subdivision 5, by adding a subdivision; proposing coding
for new law in Minnesota Statutes, chapter 349A.

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

Section 1. new text begin CONSTITUTIONAL AMENDMENT PROPOSED.
new text end

new text begin An amendment to the Minnesota Constitution is proposed to the people. If the
amendment is adopted, article XIII, section 5, will read:
new text end

Sec. 5.

The legislature shall not authorize any lottery or the sale of lottery tickets, other
than authorizing a lottery and sale of lottery tickets for a lottery operated by the state. new text begin In
addition to operation of a lottery, the state may own and operate a casino as defined by
law, and may provide for management of the casino by a private entity.
new text end

Sec. 2. new text begin SUBMISSION TO VOTERS.
new text end

new text begin The constitutional amendment proposed in section 1 must be submitted to the people
at the 2008 general election. The question submitted must be:
new text end

new text begin "Shall the Minnesota Constitution be amended to permit the state to own and operate
a casino, and to provide for management of the casino by a private entity?
new text end

new text begin Yes ....... new text end

new text begin No ......." new text end

Sec. 3.

Minnesota Statutes 2006, section 349A.02, subdivision 3, is amended to read:

Subd. 3.

Powers and duties.

In operating the lottery the director shall exercise
the following powers and duties:

(1) adopt rules and game procedures;

(2) issue lottery retailer contracts and rule on appeals of decisions relating to those
contracts;

(3) enter into lottery procurement contracts for the provision of goods and services
to the lottery;

(4) employ personnel as are required to operate the lottery;

(5) enter into written agreements with one or more government-authorized lotteries,
or with an organization created and controlled by those lotteries, for the operation,
marketing, and promotion of a joint lottery;

(6) adopt and publish advertising and promotional materials consistent with section
349A.09; deleted text begin and deleted text end

(7) new text begin oversee the construction and operation of any state-operated casino; and
new text end

new text begin (8) new text end take all necessary steps to ensure the integrity of, and public confidence in, the
State Lottery.

Sec. 4.

Minnesota Statutes 2006, section 349A.07, is amended by adding a subdivision
to read:

new text begin Subd. 8. new text end

new text begin Casino management contract. new text end

new text begin A contract entered into by the director for
the management of a casino operated by the director must include at least the following
provisions:
new text end

new text begin (1) compensation to the contractor based on services performed and goods provided,
provided that no part of the compensation may be determined directly or indirectly on
the basis of gross revenues or net profits from the casino;
new text end

new text begin (2) the duration of the contract, which may not exceed seven years, and the grounds
on which the contract may be terminated by either party before its expiration;
new text end

new text begin (3) the extent to which the contractor has access to and is responsible for managing
funds of the casino;
new text end

new text begin (4) qualifications and disqualifications for employees of the contractor, and the
extent of the director's supervisory authority over those employees;
new text end

new text begin (5) the director's access to the contractor's premises and financial records; and
new text end

new text begin (6) responsibility and authority for audit of the contractor's financial records.
new text end

Sec. 5.

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

Subd. 5.

Deposit of net new text begin lottery new text end 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. 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. new text begin This subdivision does not apply to net proceeds from a
casino operated by the director.
new text end

Sec. 6.

Minnesota Statutes 2006, section 349A.10, is amended by adding a subdivision
to read:

new text begin Subd. 5a. new text end

new text begin Deposit of net casino proceeds. new text end

new text begin The net proceeds from any casino
operated by the director must be deposited in the Minnesota capital improvement fund.
new text end

Sec. 7.

new text begin [349A.17] MINNESOTA CAPITAL IMPROVEMENT FUND.
new text end

new text begin A Minnesota capital improvement fund is created as a separate fund in the state
treasury. The fund consists of money deposited under section 349A.10, subdivision 5a;
other money credited to the fund by law; and interest on the fund. Money in the fund may
be appropriated by law only for:
new text end

new text begin (1) capital improvements of the state, including but not limited to highways and
bridges;
new text end

new text begin (2) capital improvements of political subdivisions;
new text end

new text begin (3) educational infrastructure; and
new text end

new text begin (4) payment of debt service on bonds of the state issued for the purposes of clauses
(1) to (3).
new text end

Sec. 8. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 3 to 7 are effective January 1, 2009, if the constitutional amendment
proposed in section 1 is adopted at the 2008 general election.
new text end