HF 2100

1st Committee Engrossment - 86th Legislature (2009 - 2010)

Posted on 03/19/2013 07:29 p.m.

1.1A bill for an act 1.2relating to economic development; creating jobs, family, and economic 1.3development fund; modifying or adding provisions relating to gambling at 1.4racetracks; requiring reports on use of federal money for biomass; imposing 1.5gross misdemeanor penalty;amending Minnesota Statutes 2008, sections 240.07, 1.6subdivision 3; 240.35, subdivision 1; 299L.07, subdivisions 2, 2a; 340A.410, 1.7subdivision 5; 541.20; 541.21; proposing coding for new law in Minnesota 1.8Statutes, chapters 3; 240. 1.9BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.10    Section 1. new text begin [3.886] JOBS, FAMILY, AND ECONOMIC DEVELOPMENT FUND. new text end 1.11 new text begin The jobs, family, and economic development fund is created as a separate fund in new text end 1.12 new text begin the state treasury. The fund consists of money deposited in the fund pursuant to section new text end 1.13 new text begin 240.31, subdivision 5. Appropriations from the fund may be on an annual or biennial basis new text end 1.14 new text begin and are dedicated for the following purposes. new text end 1.15 new text begin (a) Twenty percent of the fund is dedicated and may be appropriated for agricultural new text end 1.16 new text begin and rural development, including livestock and biomass-related development including new text end 1.17 new text begin biofuel development grants and investments to stimulate other businesses and employment new text end 1.18 new text begin opportunities. new text end 1.19 new text begin (b) Twenty percent of the fund is dedicated and may be appropriated for early new text end 1.20 new text begin childhood development and family education. new text end 1.21 new text begin (c) Twenty percent of the fund is dedicated and may be appropriated for research new text end 1.22 new text begin and development of bioscience and medical technology businesses and employment new text end 1.23 new text begin opportunities. During the first two years, 50 percent of the grants authorized by this new text end 1.24 new text begin paragraph shall be for attracting bioscience and high-technology jobs to the Elk Run Park new text end 1.25 new text begin and the University of Minnesota Research Parks. new text end 2.1 new text begin (d) Twenty percent of the fund is dedicated and may be appropriated for athletic, new text end 2.2 new text begin recreational, and extracurricular facilities and programs and to stimulate capital new text end 2.3 new text begin improvements and employment. new text end 2.4 new text begin (e) Twenty percent of the fund is dedicated and may be appropriated for general new text end 2.5 new text begin fund expenditures. new text end 2.6    Sec. 2. Minnesota Statutes 2008, section 240.07, subdivision 3, is amended to read: 2.7    Subd. 3. License issuance. (a) If after considering the information received from 2.8the hearing and investigations, the commission determines that the applicant will conduct 2.9horse racing in accordance with all applicable laws and rules, will not adversely affect the 2.10public health, welfare, and safety, that the license will not create a competitive situation 2.11that will adversely affect racing and the public interest and that the applicant is fit to 2.12sponsor and manage racing, the commission may issue a class B license. 2.13(b) If the commission determines that the licensee will operate a card club in 2.14accordance with all applicable law and rules and the applicant's approved plan of operation 2.15under section 240.30, subdivision 6, that the operation of a card club by the licensee will 2.16not adversely affect the public health, welfare, and safety, and that the licensee is fit to 2.17operate a card club, the commission may include with the class B license an authorization 2.18to conduct a card club at the licensee's class A racetrack as provided in section 240.30. 2.19The commission may give an interim authorization for the operation of a card club that 2.20is effective until the expiration of the licensee's class B license and may charge for the 2.21interim authorization a proportionate amount of the additional class B license fee under 2.22section 240.10. 2.23(c) new text begin If the commission determines that the licensee will operate additional gambling new text end 2.24 new text begin activities under section 240.31 in accordance with applicable laws and rules and the new text end 2.25 new text begin applicant's approved plan of operation, and that the operation of the activity will not new text end 2.26 new text begin adversely affect the public health, welfare, and safety, and that the licensee is fit to conduct new text end 2.27 new text begin the activity, the commission may include with the class B license an authorization to new text end 2.28 new text begin conduct additional gambling activities at the licensee's class A racetrack as provided in new text end 2.29 new text begin section 240.31. The commission may give an interim authorization for the operation of new text end 2.30 new text begin the activity that is effective until the expiration of the licensee's class B license. The new text end 2.31 new text begin commission shall not authorize a class B licensee to conduct gambling activities, pursuant new text end 2.32 new text begin to section 240.31, unless the licensee has, within the preceding 12 months, conducted 75 new text end 2.33 new text begin days of live racing, consisting of not less than eight live races on each racing day, at the new text end 2.34 new text begin class A facility where the licensee conducts racing. For licensees seeking approval for the new text end 2.35 new text begin first time, the 75-day racing requirement shall be deemed to have been met if the licensee new text end 3.1 new text begin has applied for and been granted at least 75 days of live racing to be conducted in the next new text end 3.2 new text begin race meet. The live racing requirement established by this paragraph may be adjusted new text end 3.3 new text begin by written agreement between a class B licensee and the horsepersons' organization new text end 3.4 new text begin representing the majority of all owners and trainers licensed by the commission. Any new text end 3.5 new text begin agreement entered into under this paragraph must be filed with the commission. new text end 3.6 new text begin (d) new text end The license is for a period of one year. 3.7    Sec. 3. new text begin [240.31] OTHER GAMES. new text end 3.8     new text begin Subdivision 1. new text end new text begin Authorization. new text end new text begin The commission may authorize a class B operator new text end 3.9 new text begin of a class A racetrack, which is specifically authorized to conduct gambling activities in new text end 3.10 new text begin addition to pari-mutuel horse race wagering, to operate gaming machines and to conduct new text end 3.11 new text begin banked card games. For the purposes of this subdivision, a "gaming machine" means any new text end 3.12 new text begin device that may provide something of value to a person operating the device, the award of new text end 3.13 new text begin which is based, in whole or in part, upon chance. new text end 3.14     new text begin Subd. 2. new text end new text begin Installation and operation permitted. new text end new text begin A class B licensee authorized by new text end 3.15 new text begin this section may own or lease, install, maintain, and operate gaming machines within new text end 3.16 new text begin the licensed premises of the licensee's class A racetrack, as defined in the approved new text end 3.17 new text begin class A license, if the commission has authorized the operation as provided in section new text end 3.18 new text begin 240.07, subdivision 3, paragraph (c). The commission may withdraw its authorization new text end 3.19 new text begin for operation of gaming machines at any time for a violation of a law or rule governing new text end 3.20 new text begin gaming machine operation. new text end 3.21     new text begin Subd. 3. new text end new text begin Supervision. new text end new text begin (a) A class B licensee who operates gaming machines at new text end 3.22 new text begin the licensee's class A racetrack is responsible for conducting and supervising gaming new text end 3.23 new text begin machine play and operation; providing all necessary equipment, services, and personnel; new text end 3.24 new text begin and reimbursing the commission for costs related to gaming machine regulation and new text end 3.25 new text begin enforcement. new text end 3.26 new text begin (b) The commission and its representatives, and the director of the Division of new text end 3.27 new text begin Alcohol and Gambling Enforcement and the division's representatives, have the right, at new text end 3.28 new text begin any time without prior notice and without a search warrant, to (1) inspect the licensee's new text end 3.29 new text begin books, records, and other indicators of total plays on and gross receipts from gaming new text end 3.30 new text begin machines on the licensed premises, (2) inspect any computer hardware or software that new text end 3.31 new text begin relate to the operation of gaming machines on the licensed premises, and (3) have new text end 3.32 new text begin unrestricted access to any part of any gaming machine on the licensed premises. new text end 3.33     new text begin Subd. 4. new text end new text begin Plan of operation. new text end new text begin (a) The commission shall not authorize a class new text end 3.34 new text begin B licensee to operate gaming machines unless the licensee has submitted, and the new text end 3.35 new text begin commission has approved, a plan of operation for gaming machine operation. The plan new text end 4.1 new text begin must set forth all necessary details for the operation of gaming machines, including but new text end 4.2 new text begin not limited to: new text end 4.3 new text begin (1) types of games to be offered; new text end 4.4 new text begin (2) designation of the licensee's employees who will have access to the interior new text end 4.5 new text begin and exterior of gaming machines; new text end 4.6 new text begin (3) designation of the licensee's employees who will have access to cash inserted new text end 4.7 new text begin and removed from gaming machines; new text end 4.8 new text begin (4) security measures and internal control systems to be adopted and implemented new text end 4.9 new text begin by the licensee to ensure integrity of gaming machine play and security of all money new text end 4.10 new text begin removed from gaming machines; new text end 4.11 new text begin (5) measures to be adopted and implemented by the licensee to ensure the security new text end 4.12 new text begin and safety of patrons of that portion of the licensed premises where gaming machines new text end 4.13 new text begin are operated; new text end 4.14 new text begin (6) a description of the design, manufacture, and operation of gaming machines the new text end 4.15 new text begin licensee will own or lease and operate; and new text end 4.16 new text begin (7) a plan for the training of all personnel who work in that portion of the licensed new text end 4.17 new text begin premises where gaming machines are operated in the identification of problem gamblers new text end 4.18 new text begin and appropriate action to prevent or control problem gambling. new text end 4.19 new text begin (b) Deviation from the standards in paragraph (a) requires prior approval of the new text end 4.20 new text begin commission in the same manner as amendments to the plan of operation under this new text end 4.21 new text begin subdivision. new text end 4.22     new text begin Subd. 5. new text end new text begin Amendments to plan. new text end new text begin The licensee may amend the plan of operation and new text end 4.23 new text begin implement those amendments only with the commission's prior approval. new text end 4.24     new text begin Subd. 6. new text end new text begin Violations of plan. new text end new text begin (a) A violation of an approved plan of operation, new text end 4.25 new text begin or implementation of an amendment to an approved plan of operation without the new text end 4.26 new text begin commission's prior approval, is deemed to be a violation of law or a rule of the commission. new text end 4.27 new text begin (b) Gaming machine play and operation are deemed to be relevant to the integrity of new text end 4.28 new text begin horse racing activities in Minnesota for purposes of sections 240.03; 240.06, subdivision new text end 4.29 new text begin 7; 240.08; and 240.27, subdivision 1. new text end 4.30     new text begin Subd. 7. new text end new text begin Removal of nonconforming machines. new text end new text begin The commission or its authorized new text end 4.31 new text begin representatives, and the director of alcohol and gambling enforcement and the director's new text end 4.32 new text begin authorized representatives, may administratively order a class B licensee to remove new text end 4.33 new text begin from use any gaming machine that the commission or director determines to be out of new text end 4.34 new text begin compliance with the approved plan of operation. new text end 5.1     new text begin Subd. 8. new text end new text begin Minimum age for play. new text end new text begin A licensee may not permit a person under the age new text end 5.2 new text begin of 18 to play a game on or win a prize from a gaming machine that the licensee operates. new text end 5.3 new text begin Violation of this subdivision is a gross misdemeanor. new text end 5.4     new text begin Subd. 9. new text end new text begin Posting of notice. new text end new text begin A class B licensee who has been authorized to new text end 5.5 new text begin operate gaming machines must prominently post, in the portion of the licensed premises new text end 5.6 new text begin where gaming machines are operated, the toll-free telephone number established by the new text end 5.7 new text begin commissioner of human services in connection with the compulsive gambling program new text end 5.8 new text begin established under section 245.98. new text end 5.9     new text begin Subd. 10. new text end new text begin Local regulation prohibited. new text end new text begin Except as provided in section 240.17, a new text end 5.10 new text begin political subdivision may not prohibit or regulate gaming machines authorized under this new text end 5.11 new text begin section, or impose a tax on the proceeds of gaming machines authorized under this section. new text end 5.12     new text begin Subd. 11. new text end new text begin Purses. new text end new text begin From the sum of all money received by the licensee from new text end 5.13 new text begin gambling activities authorized under subdivision 1, less the amount paid out in prizes new text end 5.14 new text begin and winnings and fees required, pursuant to subdivision 14, the licensee must set aside new text end 5.15 new text begin a minimum of ten percent for purses for live horse races conducted at class A facilities new text end 5.16 new text begin in the state. The minimum amount of purse set-aside is increased to 14 percent for any new text end 5.17 new text begin activities conducted five years or more after the enactment of this section. Set-asides new text end 5.18 new text begin required by this paragraph shall be transmitted to the commission, which shall establish new text end 5.19 new text begin an account for each breed racing in the state. The commission shall allocate these funds new text end 5.20 new text begin based on the percentage of wagering handled on each breed for races conducted at class new text end 5.21 new text begin A facilities as compared to the total amount of wagering handled on races conducted at new text end 5.22 new text begin class A facilities during the previous calendar year. The commission shall transfer 15 new text end 5.23 new text begin percent of the amount allocated to each breed to its breeder's fund to be distributed in the new text end 5.24 new text begin manner provided for money generated by full racing card simulcasting, pursuant to section new text end 5.25 new text begin 240.15, subdivision 6. The commission shall routinely transfer the remaining money in new text end 5.26 new text begin the accounts to the licensees conducting racing for each breed and direct the licensee to new text end 5.27 new text begin augment the purses for that breed with the funds received from the commission. Purse new text end 5.28 new text begin augmentations required pursuant to this subdivision are in addition to purse payments new text end 5.29 new text begin otherwise established by law or contract. new text end 5.30     new text begin Subd. 12. new text end new text begin Reimbursement to commission. new text end new text begin The commission shall require that new text end 5.31 new text begin the licensee reimburse it for the commission's actual costs of regulating any additional new text end 5.32 new text begin gambling activities under this section. Amounts received under this subdivision must be new text end 5.33 new text begin deposited as provided in section 240.155, subdivision 1. new text end 5.34     new text begin Subd. 13. new text end new text begin Reporting. new text end new text begin The class B licensee shall report all income generated by the new text end 5.35 new text begin additional gambling activities in an annual report to the Racing Commission. The report new text end 6.1 new text begin shall also account for all costs of operation, taxes paid, purses paid, and amounts paid to new text end 6.2 new text begin the breeder's fund. new text end 6.3     new text begin Subd. 14. new text end new text begin Fee. new text end new text begin The licensee must pay to the commission an annual gambling new text end 6.4 new text begin activities fee equal to 32 percent of all money received by the licensee from gambling new text end 6.5 new text begin activities authorized under this section, less the amount paid out in prizes and winnings. new text end 6.6 new text begin The fee established by this subdivision shall be 42 percent on amounts received by a new text end 6.7 new text begin licensee in excess of $125,000,000 in a calendar year, less the amount paid out in prizes new text end 6.8 new text begin and winnings. The licensee must pay this fee on a quarterly basis. The commission shall new text end 6.9 new text begin distribute the fee revenue it collects, on a quarterly basis, as follows: new text end 6.10 new text begin (1) one percent of the amount paid by each licensee to the city in which the licensee new text end 6.11 new text begin is conducting games authorized, pursuant to this section; new text end 6.12 new text begin (2) one percent to the county in which the licensee is conducting games authorized, new text end 6.13 new text begin pursuant to this section; and new text end 6.14 new text begin (3) the remainder to the commissioner of revenue for deposit in the jobs, family, and new text end 6.15 new text begin economic development fund established in section 3.886. new text end 6.16    Sec. 4. Minnesota Statutes 2008, section 240.35, subdivision 1, is amended to read: 6.17    Subdivision 1. Generally. A licensee of the commission may detain a person if the 6.18licensee has probable cause to believe that the person detained has violated section 609.76 6.19while at a card club authorized by section 240.30 new text begin , or while participating in gambling new text end 6.20 new text begin activities authorized by section 240.31 new text end . For purposes of this section, "licensee" means the 6.21commission's director of racing security or a security officer licensed under Minnesota 6.22Rules, chapter 7878. 6.23    Sec. 5. Minnesota Statutes 2008, section 299L.07, subdivision 2, is amended to read: 6.24    Subd. 2. Exclusions. Notwithstanding subdivision 1, a gambling device: 6.25(1) may be sold by a person who is not licensed under this section, if the person (i) is 6.26not engaged in the trade or business of selling gambling devices, and (ii) does not sell 6.27more than one gambling device in any calendar year; 6.28(2) may be sold by the governing body of a federally recognized Indian tribe 6.29described in subdivision 2a, paragraph (b), clause (1), which is not licensed under this 6.30section, if (i) the gambling device was operated by the Indian tribe, (ii) the sale is to 6.31a distributor licensed under this section, and (iii) the licensed distributor notifies the 6.32commissioner of the purchase, in the same manner as is required when the licensed 6.33distributor ships a gambling device into Minnesota; 7.1(3) may be possessed by a person not licensed under this section if the person holds 7.2a permit issued under section 299L.08; and 7.3(4) may be possessed by a state agency, with the written authorization of the director, 7.4for display or evaluation purposes only and not for the conduct of gambling new text begin ; and new text end 7.5 new text begin (5) may be possessed by a licensee authorized to conduct gambling activities new text end 7.6 new text begin pursuant to section 240.31, subdivision 1 new text end . 7.7    Sec. 6. Minnesota Statutes 2008, section 299L.07, subdivision 2a, is amended to read: 7.8    Subd. 2a. Restrictions. (a) A manufacturer licensed under this section may sell, 7.9offer to sell, lease, or rent, in whole or in part, a gambling device only to a distributor 7.10licensed under this section new text begin or to a licensee authorized to conduct gambling activities new text end 7.11 new text begin pursuant to section 240.31, subdivision 1 new text end . 7.12(b) A distributor licensed under this section may sell, offer to sell, market, rent, 7.13lease, or otherwise provide, in whole or in part, a gambling device only to: 7.14(1) the governing body of a federally recognized Indian tribe that is authorized 7.15to operate the gambling device under a tribal state compact under the Indian Gaming 7.16Regulatory Act, Public Law 100-497, and future amendments to it; 7.17(2) a person for use in the person's dwelling for display or amusement purposes in a 7.18manner that does not afford players an opportunity to obtain anything of value; 7.19(3) another distributor licensed under this section; or 7.20(4) a person in another state who is authorized under the laws of that state to possess 7.21the gambling device new text begin ; or new text end 7.22 new text begin (5) to a licensee authorized to conduct gambling activities pursuant to section new text end 7.23 new text begin 240.31, subdivision 1 new text end . 7.24    Sec. 7. Minnesota Statutes 2008, section 340A.410, subdivision 5, is amended to read: 7.25    Subd. 5. Gambling prohibited. (a) Except as otherwise provided in this 7.26subdivision, no retail establishment licensed to sell alcoholic beverages may keep, possess, 7.27or operate, or permit the keeping, possession, or operation on the licensed premises of dice 7.28or any gambling device as defined in section 349.30, or permit gambling therein. 7.29(b) Gambling equipment may be kept or operated and raffles conducted on licensed 7.30premises and adjoining rooms when the use of the gambling equipment is authorized by 7.31(1) chapter 349, (2) a tribal ordinance in conformity with the Indian Gaming Regulatory 7.32Act, Public Law 100-497, or (3) a tribal-state compact authorized under section 3.9221. 7.33(c) Lottery tickets may be purchased and sold within the licensed premises as 7.34authorized by the director of the lottery under chapter 349A. 8.1(d) Dice may be kept and used on licensed premises and adjoining rooms as 8.2authorized by section 609.761, subdivision 4. 8.3 new text begin (e) Gambling devices may be operated on the premises of a licensed racetrack as new text end 8.4 new text begin authorized by section 240.31, subdivision 1. new text end 8.5    Sec. 8. Minnesota Statutes 2008, section 541.20, is amended to read: 8.6541.20 RECOVERY OF MONEY LOST. 8.7Every person who, by playing at cards, dice, or other game, or by betting on the hands 8.8or sides of such as are gambling, shall lose to any person so playing or betting any sum of 8.9money or any goods, and pays or delivers the same, or any part thereof, to the winner, 8.10may sue for and recover such money by a civil action, before any court of competent 8.11jurisdiction. For purposes of this section, gambling shall not include pari-mutuel new text begin or other new text end 8.12wagering new text begin activity new text end conducted under a license issued pursuant to chapter 240, purchase or 8.13sale of tickets in the state lottery, or gambling authorized under chapters 349 and 349A. 8.14    Sec. 9. Minnesota Statutes 2008, section 541.21, is amended to read: 8.15541.21 COMMITMENTS FOR GAMBLING DEBT VOID. 8.16Every note, bill, bond, mortgage, or other security or conveyance in which the whole 8.17or any part of the consideration shall be for any money or goods won by gambling or 8.18playing at cards, dice, or any other game whatever, or by betting on the sides or hands 8.19of any person gambling, or for reimbursing or repaying any money knowingly lent or 8.20advanced at the time and place of such gambling or betting, or lent and advanced for any 8.21gambling or betting to any persons so gambling or betting, shall be void and of no effect 8.22as between the parties to the same, and as to all persons except such as hold or claim under 8.23them in good faith, without notice of the illegality of the consideration of such contract or 8.24conveyance. The provisions of this section shall not apply to: (1) pari-mutuel new text begin or other new text end 8.25wagering new text begin activity new text end conducted under a license issued pursuant to chapter 240; (2) purchase 8.26of tickets in the state lottery under chapter 349A; (3) gaming activities conducted pursuant 8.27to the Indian Gaming Regulatory Act, 25 U.S.C. 2701 et seq.; or (4) lawful gambling 8.28activities permitted under chapter 349. 8.29    Sec. 10. new text begin REPORTS ON USE OF FEDERAL MONEY ON BIOMASS new text end 8.30 new text begin ESTABLISHMENT. new text end 8.31 new text begin The commissioner of agriculture shall study and report to the legislative committees new text end 8.32 new text begin with jurisdiction over agriculture and energy policy and finance on the use made of federal new text end 8.33 new text begin programming money authorized by title IX of the 2008 Farm Bill for biomass-related new text end 9.1 new text begin research, development, production, and establishment in Minnesota. The commissioner new text end 9.2 new text begin may make recommendations regarding additional, future utilization of biomass in new text end 9.3 new text begin Minnesota in any interim or final report. The commissioner shall submit interim reports new text end 9.4 new text begin by the first week of February annually through 2012 and submit the final report by the new text end 9.5 new text begin first week of January 2013. new text end 9.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end