1.1                          A bill for an act 
  1.2             relating to gambling; proposing an amendment to the 
  1.3             Minnesota Constitution, articles X, section 8; XI, 
  1.4             section 14; and XIII, section 5, to prohibit the 
  1.5             legislature from authorizing any form of gambling, and 
  1.6             to nullify all laws that authorize gambling; repealing 
  1.7             authorization for private social bets and certain 
  1.8             tribal-state compacts, contingent on approval of the 
  1.9             constitutional amendment; amending Minnesota Statutes 
  1.10            1996, section 609.75, subdivision 3; repealing Laws 
  1.11            1989, chapter 334, article 6, section 14; and Laws 
  1.12            1990, chapter 590, article 1, section 48, subdivision 
  1.13            2.  
  1.14  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.15     Section 1.  Minnesota Statutes 1996, section 609.75, 
  1.16  subdivision 3, is amended to read: 
  1.17     Subd. 3.  [WHAT ARE NOT BETS.] The following are not bets: 
  1.18     (1) A contract to insure, indemnify, guarantee or otherwise 
  1.19  compensate another for a harm or loss sustained, even though the 
  1.20  loss depends upon chance. 
  1.21     (2) A contract for the purchase or sale at a future date of 
  1.22  securities or other commodities. 
  1.23     (3) Offers of purses, prizes or premiums to the actual 
  1.24  contestants in any bona fide contest for the determination of 
  1.25  skill, speed, strength, endurance, or quality or to the bona 
  1.26  fide owners of animals or other property entered in such a 
  1.27  contest. 
  1.28     (4) The game of bingo when conducted in compliance with 
  1.29  sections 349.11 to 349.23. 
  2.1      (5) A private social bet not part of or incidental to 
  2.2   organized, commercialized, or systematic gambling. 
  2.3      (6) The operation of equipment or the conduct of a raffle 
  2.4   under sections 349.11 to 349.22, by an organization licensed by 
  2.5   the gambling control board or an organization exempt from 
  2.6   licensing under section 349.166.  
  2.7      (7) Pari-mutuel betting on horse racing when the betting is 
  2.8   conducted under chapter 240.  
  2.9      (8) The purchase and sale of state lottery tickets under 
  2.10  chapter 349A.  
  2.11     Sec. 2.  [CONSTITUTIONAL AMENDMENT PROPOSED.] 
  2.12     An amendment to the Minnesota Constitution is proposed to 
  2.13  the people.  
  2.14     If the amendment is adopted: 
  2.15     article X, section 8, will be repealed, 
  2.16     article XI, section 14, will read: 
  2.17     Sec. 14.  A permanent Minnesota environment and natural 
  2.18  resources trust fund is established in the state treasury.  The 
  2.19  principal of the environment and natural resources trust fund 
  2.20  must be perpetual and inviolate forever, except appropriations 
  2.21  may be made from up to 25 percent of the annual revenues 
  2.22  deposited in the fund until fiscal year 1997 and loans may be 
  2.23  made of up to five percent of the principal of the fund for 
  2.24  water system improvements as provided by law.  This restriction 
  2.25  does not prevent the sale of investments at less than the cost 
  2.26  to the fund, however, all losses not offset by gains shall be 
  2.27  repaid to the fund from the earnings of the fund.  The net 
  2.28  earnings from the fund shall be appropriated in a manner 
  2.29  prescribed by law for the public purpose of protection, 
  2.30  conservation, preservation, and enhancement of the state's air, 
  2.31  water, land, fish, wildlife, and other natural resources.  Not 
  2.32  less than 40 percent of the net proceeds from any state-operated 
  2.33  lottery must be credited to the fund until the year 2001.  
  2.34     and article XIII, section 5, will read: 
  2.35     Sec. 5.  The legislature shall not authorize any lottery or 
  2.36  the sale of lottery tickets, other than authorizing a lottery 
  3.1   and sale of lottery tickets for a lottery operated by the 
  3.2   state form of gambling.  Any law in effect on November 5, 1998, 
  3.3   that authorizes any form of gambling is void on and after July 
  3.4   1, 1999. 
  3.5      Sec. 3.  [SUBMISSION TO VOTERS.] 
  3.6      The proposed amendment must be submitted to the people at 
  3.7   the 1998 general election.  The question submitted must be: 
  3.8      "Shall the Minnesota Constitution be amended to prohibit 
  3.9   the legislature from authorizing any form of gambling, and to 
  3.10  repeal all existing laws that authorize any form of gambling? 
  3.11                                    Yes........
  3.12                                    No........."
  3.13     Sec. 4.  [REPEALER.] 
  3.14     Laws 1989, chapter 334, article 6, section 14; and Laws 
  3.15  1990, chapter 590, article 1, section 48, subdivision 2, are 
  3.16  repealed.  
  3.17     Sec. 5.  [EFFECTIVE DATE.] 
  3.18     Sections 1 and 4 are effective July 1, 1999; except that if 
  3.19  the constitutional amendment proposed in section 2 is not 
  3.20  adopted at the 1998 general election, sections 1 and 4 shall not 
  3.21  take effect.