SF 1862

Introduction - 84th Legislature (2005 - 2006)

Posted on 12/15/2009 12:00 a.m.

A bill for an act
relating to gambling; authorizing the commissioner of
public safety to issue a casino license; providing
powers and duties to the commissioner; providing for
regulation casino and taxation of casino revenue;
making technical, clarifying, and conforming changes;
amending Minnesota Statutes 2004, sections 299L.01,
subdivision 4; 299L.07, subdivisions 2, 2a; 340A.404,
by adding a subdivision; 340A.410, subdivision 5;
349.31, by adding a subdivision; 541.20; 541.21;
609.75, subdivision 3; 609.761, by adding a
subdivision; proposing coding for new law in Minnesota
Statutes, chapter 349B.

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

Section 1.

Minnesota Statutes 2004, section 299L.01,
subdivision 4, is amended to read:

Subd. 4.

Conflict of interest.

(a) The director and any
person employed by the division may not have a direct or
indirect financial interest in:

(1) a class A or B licensee of the Racing Commission;

(2) a lottery retailer under contract with the State
Lottery;

(3) a person who is under a lottery procurement contract
with the State Lottery;

(4) a bingo hall, manufacturer, or distributor licensed
under chapter 349; deleted text begin or
deleted text end

(5) a manufacturer or distributor licensed under this
chapter new text begin ; or
new text end

new text begin (6) a casino licensee under chapter 349B new text end .

(b) The director or an employee of the Division of Alcohol
and Gambling Enforcement may not participate in the conducting
of lawful gambling under chapter 349.

Sec. 2.

Minnesota Statutes 2004, section 299L.07,
subdivision 2, is amended to read:

Subd. 2.

Exclusions.

Notwithstanding subdivision 1, a
gambling device:

(1) may be sold by a person who is not licensed under this
section, if the person (i) is not engaged in the trade or
business of selling gambling devices, and (ii) does not sell
more than one gambling device in any calendar year;

(2) may be sold by the governing body of a federally
recognized Indian tribe described in subdivision 2a, paragraph
(b), clause (1), which is not licensed under this section, if
(i) the gambling device was operated by the Indian tribe, (ii)
the sale is to a distributor licensed under this section, and
(iii) the licensed distributor notifies the commissioner of the
purchase, in the same manner as is required when the licensed
distributor ships a gambling device into Minnesota;

(3) may be possessed by a person not licensed under this
section if the person holds a permit issued under section
299L.08; deleted text begin and
deleted text end

(4) may be possessed by a state agency, with the written
authorization of the director, for display or evaluation
purposes only and not for the conduct of gambling new text begin ; and
new text end

new text begin (5) may be possessed by a casino licensee under chapter
349B new text end .

Sec. 3.

Minnesota Statutes 2004, section 299L.07,
subdivision 2a, is amended to read:

Subd. 2a.

Restrictions.

(a) A manufacturer licensed
under this section may sell, offer to sell, lease, or rent, in
whole or in part, a gambling device only to a distributor
licensed under this section.

(b) A distributor licensed under this section may sell,
offer to sell, market, rent, lease, or otherwise provide, in
whole or in part, a gambling device only to:

(1) the governing body of a federally recognized Indian
tribe that is authorized to operate the gambling device under a
tribal state compact under the Indian Gaming Regulatory Act,
Public Law 100-497, and future amendments to it;

(2) a person for use in the person's dwelling for display
or amusement purposes in a manner that does not afford players
an opportunity to obtain anything of value;

(3) another distributor licensed under this section; deleted text begin or
deleted text end

(4) a person in another state who is authorized under the
laws of that state to possess the gambling device new text begin ; or
new text end

new text begin (5) a casino licensee under chapter 349B new text end .

Sec. 4.

Minnesota Statutes 2004, section 340A.404, is
amended by adding a subdivision to read:

new text begin Subd. 8a. new text end

new text begin Licenses to casino. new text end

new text begin The commissioner may issue
an on-sale intoxicating liquor license to a casino licensee
under chapter 349B. The premises licensed under this
subdivision need not be compact and contiguous but must be
limited to the casino premises as described in the approved
casino license application. The commissioner shall set the fee
for the license in an amount sufficient to cover the
commissioner's costs of issuing and inspecting and other
directly related costs of enforcement. The license authorizes
sales on all days of the week.
new text end

Sec. 5.

Minnesota Statutes 2004, section 340A.410,
subdivision 5, is amended to read:

Subd. 5.

Gambling prohibited.

(a) Except as otherwise
provided in this subdivision, no retail establishment licensed
to sell alcoholic beverages may keep, possess, or operate, or
permit the keeping, possession, or operation on the licensed
premises of dice or any gambling device as defined in section
349.30, or permit gambling therein.

(b) Gambling equipment may be kept or operated and raffles
conducted on licensed premises and adjoining rooms when the use
of the gambling equipment is authorized by (1) chapter 349, (2)
a tribal ordinance in conformity with the Indian Gaming
Regulatory Act, Public Law 100-497, or (3) a tribal-state
compact authorized under section 3.9221.

(c) Lottery tickets may be purchased and sold within the
licensed premises as authorized by the director of the lottery
under chapter 349A.

(d) Dice may be kept and used on licensed premises and
adjoining rooms as authorized by section 609.761, subdivision 4.

new text begin (e) Gambling devices may be operated on the premises of a
casino licensed under chapter 349B.
new text end

Sec. 6.

Minnesota Statutes 2004, section 349.31, is
amended by adding a subdivision to read:

new text begin Subd. 3. new text end

new text begin Casino operation permitted. new text end

new text begin Sections 349.31 to
349.61 do not prohibit the operation of gambling devices at a
casino licensed under chapter 349B.
new text end

Sec. 7.

new text begin [349B.02] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Casino. new text end

new text begin "Casino" means a facility where
the forms of gaming authorized under section 349B.07,
subdivision 2, are conducted.
new text end

new text begin Subd. 2. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the
commissioner of public safety.
new text end

new text begin Subd. 3. new text end

new text begin Adjusted gross receipts. new text end

new text begin "Adjusted gross
receipts" means all revenue received by a casino as wagers on
gaming activities, or as payments for chips or tokens used in
gaming activities at the casino, less amounts paid out by the
casino as prizes and winnings and for redemption of chips or
tokens. "Adjusted gross receipts" does not include revenue from
chips or tokens that have been purchased but have not been
redeemed or won back by the casino.
new text end

Sec. 8.

new text begin [349B.03] CASINO AUTHORIZED.
new text end

new text begin The commissioner may issue one license for the ownership
and operation of a casino in the city of International Falls or
adjoining area to an applicant meeting the requirements of this
chapter. For purposes of this chapter, an "applicant" means a
corporate entity formed by the governing body of the White Earth
Indian Reservation for the purposes of operating a casino under
this chapter.
new text end

Sec. 9.

new text begin [349B.04] CASINO LICENSE.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin An application for a casino
license must be on a form the commissioner prescribes and must
be accompanied by detailed plans and specifications of the
casino, associated buildings, and surrounding grounds. The
commissioner may charge applicants a nonrefundable application
fee to reimburse the commissioner's costs for reviewing
applications, conducting investigations, and carrying out other
duties related to the application process. The fee shall not
exceed the commissioner's costs. The application must contain:
new text end

new text begin (a) the name and address of the applicant and, if it is a
corporation, the names of all officers, directors, and
shareholders of the corporation and any of its holding
corporations;
new text end

new text begin (b) the names of any person or persons holding directly,
indirectly, or beneficially an interest of any kind in the
applicant or any of its holding corporations, whether the
interest is financial, administrative, policy making, or
supervisory;
new text end

new text begin (c) a statement of the assets and liabilities of the
applicant;
new text end

new text begin (d) an affidavit executed by the applicant setting forth
that no officer, director, or other person with a present or
future direct or indirect financial or management interest in
the casino, to the best of the applicant's knowledge:
new text end

new text begin (1) is in default in the payment of an obligation or debt
to the state under this chapter;
new text end

new text begin (2) does not have a felony conviction of record in a state
or federal court and does not have a state or federal felony
charge pending;
new text end

new text begin (3) is or has been connected with or engaged in any illegal
business;
new text end

new text begin (4) has ever been found guilty of fraud or
misrepresentation in connection with any gambling activity; or
new text end

new text begin (5) has ever been found guilty of a violation of a law or
rule relating to gambling; and
new text end

new text begin (e) an irrevocable consent statement, to be signed by the
applicant, which states that suits and actions relating to the
subject matter of the application or acts or omissions arising
from it may be commenced against the applicant in any court of
competent jurisdiction in the state by the service on the
secretary of state of any summons, process, or pleadings
authorized by the laws of this state. If any summons, process,
or pleadings is served upon the secretary of state, it must be
by duplicate copies. One copy must be retained in the office of
the secretary of state and the other copy must be forwarded
immediately by certified mail to the address of the applicant,
as shown by the records of the commission.
new text end

new text begin Subd. 2. new text end

new text begin Investigation. new text end

new text begin Before granting a license under
this section, the commissioner shall conduct a comprehensive
background and financial investigation of the applicant and
sources of financing. The commissioner may charge an applicant
an investigation fee to cover the cost of the investigation.
new text end

new text begin Subd. 3. new text end

new text begin Hearings. new text end

new text begin Before granting a license under this
section, the commissioner shall conduct one or more public
hearings in each area where a casino is proposed to be located.
The commissioner shall also request comments on the application
from the city council or town board of the city or town where a
casino is proposed to be located. If a town board or city
council adopts a resolution indicating that it does not consent
to being a site for the casino, the commissioner shall not
consider that location in granting a license.
new text end

new text begin Subd. 4. new text end

new text begin License issuance. new text end

new text begin (a) The commissioner may
issue one casino license for a facility. The term of a license
under this section is 30 years.
new text end

new text begin (b) Upon receiving and considering each application for a
casino license, investigations of the applicant conducted by the
commissioner, the results of the hearings conducted under
subdivision 3, the commissioner shall determine in the case of
each applicant whether the applicant is qualified for a license
under this section based on:
new text end

new text begin (1) the effect of licensing the applicant on the public
interest in effective regulation and control of gaming;
new text end

new text begin (2) the applicant's financial resources and sources of
financing;
new text end

new text begin (3) the applicant's applicable experience;
new text end

new text begin (4) the applicant's fitness to operate a casino without
creating or enhancing the dangers of unsuitable, unfair, or
illegal practices, methods, and activities in the conduct of
gaming or the carrying on of business and financial arrangements
incident to conducting gaming; and
new text end

new text begin (5) the applicant's current ownership or leasehold interest
in the site where the applicant's proposed casino will be
located.
new text end

new text begin Subd. 5. new text end

new text begin Changes in ownership or management. new text end

new text begin If a change
in the officers, directors, shareholders, or other persons with
a present or future direct or indirect financial or management
interest in the licensee, or a change of ownership of more than
five percent of the licensee's shares is made after the
application is filed or the license issued, the applicant or
licensee must notify the commissioner of the changes within five
days of their occurrence and provide the affidavit required by
subdivision 1, clause (d).
new text end

new text begin Subd. 6. new text end

new text begin License suspension and revocation. new text end

new text begin (a) The
commissioner may revoke a license under this section for (i) a
violation of law, order, or rule; (ii) operation of a casino in
violation of approved game procedures or an approved security
plan, which in the commissioner's opinion adversely affects
public health, welfare, or safety or the integrity of gaming in
Minnesota; (iii) an intentional false statement made in a
license application; or (iv) failure to perform material
covenants or representations made in a license application.
new text end

new text begin (b) The commissioner may:
new text end

new text begin (1) suspend a casino license for up to one year for an
action described in paragraph (a), clause (i) or (ii); and
new text end

new text begin (2) suspend a casino license indefinitely if the
commissioner determines that the licensee has as an officer,
director, shareholder, or other person with a direct, indirect,
or beneficial interest a person who is in the commissioner's
opinion inimical to the public health, welfare, or safety or the
integrity of gaming in Minnesota, or who cannot be certified
under subdivision 1, clause (d).
new text end

new text begin (c) The commissioner may not revoke or suspend a license
under this subdivision unless the commissioner has granted the
licensee a reasonable amount of time to cure the violation
giving rise to the revocation or suspension and, in the
commissioner's reasonable judgment, the licensee has failed to
do so.
new text end

new text begin (d) A license revocation or suspension under this
subdivision is a contested case under sections 14.57 to 14.69 of
the Administrative Procedure Act, and is in addition to criminal
penalties imposed for a violation of law or rule.
new text end

Sec. 10.

new text begin [349B.05] OCCUPATIONAL LICENSES.
new text end

new text begin Subdivision 1. new text end

new text begin License required. new text end

new text begin Any person employed at
a licensed casino in an occupation that the commissioner by
order determines requires licensing in order to ensure the
public health, welfare, or safety, or the integrity of gaming in
Minnesota, must have a license issued by the commissioner.
new text end

new text begin Subd. 2. new text end

new text begin Application. new text end

new text begin (a) An application for a casino
occupational license must be on a form and in a manner
prescribed by the commissioner. The application must be
accompanied by an affidavit of qualification that the applicant:
new text end

new text begin (1) does not have a felony conviction of record in a state
or federal court and does not have a state or federal felony
charge pending;
new text end

new text begin (2) is not and never has been connected with or engaged in
an illegal business;
new text end

new text begin (3) has never been found guilty of fraud or
misrepresentation in connection with gambling; and
new text end

new text begin (4) has never been found guilty of a serious violation of
law or rule relating to gambling.
new text end

new text begin (b) The application must also contain an irrevocable
consent statement, to be signed by the applicant, which states
that suits and actions relating to the subject matter of the
application or acts or omissions arising from it may be
commenced against the applicant in any court of competent
jurisdiction in this state by the service on the secretary of
state of any summons, process, or pleading authorized by the
laws of this state. If any summons, process, or pleading is
served upon the secretary of state, it must be by duplicate
copies. One copy must be retained in the office of the
secretary of state and the other copy must be forwarded
immediately by certified mail to the address of the applicant,
as shown by the records of the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin Investigations. new text end

new text begin The commissioner shall
investigate each applicant for a casino occupational license to
the extent the commissioner deems necessary. The commissioner
may require that an applicant be fingerprinted or furnish the
applicant's fingerprints. Investigations must be conducted and
their costs paid in the manner prescribed by section 349B.04,
subdivision 2. The commissioner may cooperate with national and
international organizations and agencies in conducting
investigations. The commissioner may by rule provide for
examining the qualifications of an applicant for the license
being applied for.
new text end

new text begin Subd. 4. new text end

new text begin License issuance and renewal. new text end

new text begin If the
commissioner determines that the applicant is qualified for the
occupation for which licensing is sought and will not adversely
affect the public health, welfare, and safety or the integrity
of gaming in Minnesota, the commissioner may issue a casino
occupational license to the applicant. If the commissioner
makes a similar finding for a renewal of a casino occupational
license the commissioner may renew the license. Casino
occupational licenses are effective for one year.
new text end

new text begin Subd. 5. new text end

new text begin Revocation and suspension. new text end

new text begin (a) The commissioner
may revoke a casino occupational license for a violation of law
or rule which in the commissioner's opinion adversely affects
the integrity of gaming in Minnesota, or for an intentional
false statement made in a license application. The commissioner
may suspend a casino occupational license for up to one year for
a violation of law, order, or rule.
new text end

new text begin (b) The commissioner may not revoke or suspend a license
under this subdivision unless the commissioner has granted the
licensee a reasonable amount of time to cure the violation
giving rise to the revocation or suspension and, in the
commissioner's reasonable judgment, the licensee has failed to
do so.
new text end

new text begin (c) A license revocation or suspension for more than 90
days is a contested case under sections 14.57 to 14.69 of the
Administrative Procedure Act and is in addition to criminal
penalties imposed for a violation of law or rule. The
commissioner 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 gaming. 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 commissioner must issue its final
decision within 30 days from receipt of the report of the
administrative law judge and subsequent exceptions and argument
under section 14.61.
new text end

Sec. 11.

new text begin [349B.06] LICENSE FEES AND PAYMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Casino license. new text end

new text begin (a) As a condition of
issuance of a license under section 349B.04 the applicant must
make to the commissioner, for deposit into the general fund, a
onetime payment of $........ This payment may not be prorated
or paid in installments. The payment must be made before a
casino license may be issued.
new text end

new text begin (b) No part of this payment may be refunded to the licensee
unless, during the 30 years immediately following the date of
license issuance:
new text end

new text begin (1) more than one casino license in the seven-county
metropolitan area is authorized by law;
new text end

new text begin (2) the provisions of this chapter authorizing operation of
the casino are repealed;
new text end

new text begin (3) the legislature authorizes a new form of gambling that
is not currently authorized under chapter 240, 349, 349B, or any
other provision of law; or
new text end

new text begin (4) new Indian gaming is approved within the seven-county
metropolitan area on land that is not currently held in trust by
the Bureau of Indian Affairs for an existing Minnesota Indian
tribe.
new text end

new text begin (c) If one or more of these events occurs during that
period, the licensee is entitled to a refund of the payment at
the rate of $....... for each full or partial year during the
30-year period in which an event described in paragraph (b), is
in effect.
new text end

new text begin Subd. 2. new text end

new text begin License renewal. new text end

new text begin A casino licensee must make to
the director an annual payment of $10,000 to renew a license
issued under section 349B.04. The annual license fee collected
under this subdivision must be deposited in the general fund.
new text end

new text begin Subd. 3. new text end

new text begin Casino occupational licenses. new text end

new text begin The commissioner
shall establish by rule a schedule of fees, not exceeding $100
per year, for casino occupational licenses. License payments
must be deposited in the general fund.
new text end

Sec. 12.

new text begin [349B.07] GAME PROCEDURES.
new text end

new text begin Subdivision 1. new text end

new text begin Filing. new text end

new text begin A casino licensee under this
chapter must file with the commissioner a complete set of rules
and procedures to govern all forms of gaming authorized at the
casino. The game procedures must specify payout percentages or
ranges of payout percentages for each form of gaming. The
commissioner shall review the game procedures and may approve
them if the commissioner determines that they adequately
guarantee the integrity and fairness of gaming and the interests
of casino patrons. A casino licensee may not conduct gaming at
the casino except in conformity with the approved game
procedures. The commissioner may conduct audits, inspections,
and investigations of gaming at the casino to ensure compliance
with this section.
new text end

new text begin Subd. 2. new text end

new text begin Amendments. new text end

new text begin A casino licensee may amend
approved game procedures only if (1) the amendments have been
filed with and approved by the commissioner, and (2) a copy of
the amended procedures have been available to the public at the
facility for at least three days before their adoption.
new text end

new text begin Subd. 3. new text end

new text begin Gaming authorized. new text end

new text begin Game procedures approved by
the commissioner may include only the following forms of gaming:
new text end

new text begin (1) card games, including blackjack;
new text end

new text begin (2) bingo; and
new text end

new text begin (3) video gaming devices and slot machines.
new text end

new text begin Subd. 4. new text end

new text begin Agreement. new text end

new text begin An individual who participates in a
game authorized at the casino agrees to be bound by the rules
and procedures applicable to that particular game.
new text end

Sec. 13.

new text begin [349B.08] SECURITY PLAN.
new text end

new text begin Subdivision 1. new text end

new text begin Filing. new text end

new text begin A casino licensee under this
chapter must file with the commissioner a comprehensive plan for
security and surveillance at the casino. The security plan must
provide that security and surveillance will be undertaken only
by persons holding casino occupational licenses. The security
plan must provide for the testing of all gambling devices by the
commissioner, or by a private entity under contract to the
commissioner. The commissioner shall review the security plan
and may approve it if the commissioner determines that it meets
customary industry standards and is reasonably adequate to
ensure the integrity and safety of casino operations. A casino
licensee may not operate the casino except in conformity with
the approved security plan. The commissioner may conduct
audits, inspections, and investigations of gambling at the
casino to ensure compliance with this section.
new text end

new text begin Subd. 2. new text end

new text begin Amendments. new text end

new text begin A casino licensee may amend a
security plan only if the amendments have been filed with and
approved by the commissioner.
new text end

Sec. 14.

new text begin [349B.09] EXCLUSION OF CERTAIN PERSONS.
new text end

new text begin Subdivision 1. new text end

new text begin Persons excluded. new text end

new text begin The commissioner may by
order exclude from a licensed casino a person who:
new text end

new text begin (1) has a felony conviction of record under the laws of any
state or the United States;
new text end

new text begin (2) has had a gaming-related license suspended, revoked, or
denied by an authority in another jurisdiction; or
new text end

new text begin (3) is determined by the commissioner, on the basis of
evidence presented to the commissioner, to be a threat to the
integrity of gaming in Minnesota.
new text end

new text begin Subd. 2. new text end

new text begin Hearing; appeal. new text end

new text begin An order to exclude a person
from a licensed casino must be made by the commissioner at a
public hearing of which the person to be excluded must have at
least five days' notice. If present at the hearing, the person
must be permitted to show cause why the exclusion should not be
ordered. An appeal of the order may be made in the same manner
as other appeals under sections 14.63 to 14.68.
new text end

new text begin Subd. 3. new text end

new text begin Reasonable time to cure. new text end

new text begin The commissioner may
not issue an order under this subdivision unless the
commissioner has granted the person who is the subject of the
order a reasonable amount of time to cure the violation or
condition giving rise to the order and, in the commissioner's
reasonable judgment, the person has failed to do so.
new text end

new text begin Subd. 4. new text end

new text begin Prohibitions. new text end

new text begin It is a gross misdemeanor for a
person named in an exclusion order to enter, attempt to enter,
or be on the premises of a licensed casino while the order is in
effect, and for a casino licensee knowingly to permit an
excluded person to enter or be on the premises.
new text end

new text begin Subd. 5. new text end

new text begin Exclusions by casino. new text end

new text begin A casino licensee may
eject and exclude from the casino premises any person who is in
violation of any state law or commissioner's rule or order or
who is a threat to the integrity of gaming or the public
safety. A person so excluded from the casino premises may
appeal the exclusion to the commissioner and must be given a
public hearing on the appeal upon request. At the hearing the
person must be given the opportunity to show cause why the
exclusion should not have been ordered. If the commissioner
after the hearing finds that the integrity of gambling and the
public safety do not justify the exclusion, the commissioner
shall order the casino licensee making the exclusion to
reinstate or readmit the person. An appeal of a commissioner's
order upholding the exclusion is governed by sections 14.63 to
14.68.
new text end

Sec. 15.

new text begin [349B.10] DETENTION OF SUSPECTS.
new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin The commissioner, an agent of
the commissioner, or a security officer who is licensed under
Minnesota Rules, chapter 7878, and is employed by a casino
licensee, may detain a person if probable cause exists to
believe that the person detained has violated section 609.76
while at a casino authorized by this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Circumstances justifying detention. new text end

new text begin (a) A
person may be detained to:
new text end

new text begin (1) require the person to provide identification or to
verify identification;
new text end

new text begin (2) inquire as to whether the person possesses any
contraband as provided by section 609.762, subdivision 1;
new text end

new text begin (3) notify a peace officer of the alleged violation; or
new text end

new text begin (4) institute criminal proceedings against the person.
new text end

new text begin (b) The person detained must be promptly informed of the
purpose of the detention and may not be subjected to unnecessary
or unreasonable force, nor to interrogation against the person's
will. If at any time the person detained requests the licensee
to summon a peace officer, the licensee must notify a peace
officer immediately. A casino licensee must not detain a person
for more than one hour unless a peace officer requests
detention, in which case the person may be detained until the
peace officer has accepted custody of or released the person.
new text end

new text begin Subd. 3. new text end

new text begin Arrest. new text end

new text begin Upon a charge being made by a licensee,
a peace officer may arrest a person without a warrant if the
officer has probable cause to believe that the person has
committed or attempted to commit an offense described in section
609.76.
new text end

new text begin Subd. 4. new text end

new text begin Immunity. new text end

new text begin No casino licensee or peace officer
is criminally or civilly liable for any detention authorized by
this section if probable cause exists for the detention, and the
detention was not conducted with unreasonable force or in bad
faith.
new text end

Sec. 16.

new text begin [349B.11] MINORS PROHIBITED.
new text end

new text begin A person under the age of 18 years may not enter, play a
game at, or win a prize from, a casino licensed under this
chapter.
new text end

Sec. 17.

new text begin [349B.12] AUDIT.
new text end

new text begin The commissioner shall take all actions the commissioner
determines necessary, including appointment of one or more
on-site auditors who are employees of the Department of Public
Safety, to ensure adequate accounting and auditing of funds and
finances of the casino. The commissioner shall arrange with the
licensee for an annual outside, independent audit of the
casino's financial operations. The licensee is responsible for
costs incurred for the annual audit.
new text end

Sec. 18.

new text begin [349B.13] PAYMENT TO STATE.
new text end

new text begin Subdivision 1. new text end

new text begin Tax imposed. new text end

new text begin There is imposed a tax on
gaming conducted at the casino under this chapter at the rate of
.. percent of adjusted gross receipts.
new text end

new text begin Subd. 2. new text end

new text begin Payment. new text end

new text begin The casino licensee must make payments
of the tax due under subdivision 1 to the commissioner in
monthly installments. The casino licensee must make payments
for each month within 30 days after the end of the month.
Payments under this subdivision must be made in a manner and on
a form prescribed by the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin Revenue. new text end

new text begin Revenue collected by the commissioner
under this section must be deposited in the state treasury and
credited as follows:
new text end

new text begin (1) .. percent to the general fund;
new text end

new text begin (2) .. percent to .......; and
new text end

new text begin (3) .. percent to a compulsive gambling account in the
state treasury. Money in this account is annually appropriated
to the commissioner of human services for the treatment of
compulsive gambling under section 245.98.
new text end

new text begin A portion of the revenue credited to the general fund under
this section must be used to increase the base-level funding of
the division and alcohol and gambling enforcement to provide for
additional inspectors and other costs related to regulating the
casino.
new text end

Sec. 19.

new text begin [349B.14] COMPULSIVE GAMBLING HOTLINE POSTING.
new text end

new text begin A casino licensee must post prominently at locations
throughout the casino, in a manner approved by the commissioner
of human services, the toll-free telephone number established by
the commissioner of human services in connection with the
compulsive gambling program.
new text end

Sec. 20.

new text begin [349B.15] LOCAL LICENSE.
new text end

new text begin Except as specifically provided otherwise by law, no
political subdivision may require a license, permit, or any
other means of approval to operate a casino, regulate or
restrict gaming authorized at a casino, or impose a tax or fee
on the conduct of gaming authorized at the casino.
new text end

Sec. 21.

Minnesota Statutes 2004, 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, or
gambling authorized under deleted text begin chapters deleted text end new text begin chapter new text end 349 deleted text begin and deleted text end new text begin , new text end 349A new text begin , or
349B new text end .

Sec. 22.

Minnesota Statutes 2004, 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 under chapter 349A; (3)
gaming activities conducted pursuant to the Indian Gaming
Regulatory Act, 25 U.S.C. 2701 et seq.; deleted text begin or deleted text end (4) lawful gambling
activities permitted under chapter 349 new text begin ; or (5) gaming licensed
under chapter 349B new text end .

Sec. 23.

Minnesota Statutes 2004, 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 under
chapter 349A.

new text begin (9) Gaming licensed under chapter 349B.
new text end

Sec. 24.

Minnesota Statutes 2004, section 609.761, is
amended by adding a subdivision to read:

new text begin Subd. 2a. new text end

new text begin Licensed casino. new text end

new text begin Sections 609.755 and 609.76
do not prohibit the operation of a casino licensed under chapter
349B.
new text end

Sec. 25. new text begin EFFECTIVE DATE.
new text end

new text begin This act is effective .......
new text end