<a id="pl.1.3"></a><var>1.3</var>development fund; modifying or adding provisions relating to gambling at <br/>
<a id="pl.1.4"></a><var>1.4</var>racetracks; requiring reports on use of federal money for biomass; imposing <br/>
<a id="pl.1.5"></a><var>1.5</var>gross misdemeanor penalty;amending Minnesota Statutes 2008, sections 240.07, <br/>
<a id="pl.1.6"></a><var>1.6</var>subdivision 3; 240.35, subdivision 1; 299L.07, subdivisions 2, 2a; 340A.410, <br/>
<a id="pl.1.7"></a><var>1.7</var>subdivision 5; 541.20; 541.21; proposing coding for new law in Minnesota <br/>
<a id="pl.1.8"></a><var>1.8</var>Statutes, chapters 3; 240.<br/>
<a id="pl.1.9"></a><var>1.9</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.0.1.0"></a><a id="pl.1.10"></a><var>1.10</var>    Section 1. <b>[3.886] JOBS, FAMILY, AND ECONOMIC DEVELOPMENT FUND.</b><br/>
<a id="pl.1.11"></a><var>1.11</var>The jobs, family, and economic development fund is created as a separate fund in <br/>
<a id="pl.1.12"></a><var>1.12</var>the state treasury. The fund consists of money deposited in the fund pursuant to section <br/>
<a id="pl.1.13"></a><var>1.13</var>240.31, subdivision 5. Appropriations from the fund may be on an annual or biennial basis <br/>
<a id="pl.1.14"></a><var>1.14</var>and are dedicated for the following purposes.<br/>
<a id="pl.1.15"></a><var>1.15</var>(a) Twenty percent of the fund is dedicated and may be appropriated for agricultural <br/>
<a id="pl.1.16"></a><var>1.16</var>and rural development, including livestock and biomass-related development including <br/>
<a id="pl.1.17"></a><var>1.17</var>biofuel development grants and investments to stimulate other businesses and employment <br/>
<a id="pl.1.18"></a><var>1.18</var>opportunities.<br/>
<a id="pl.1.19"></a><var>1.19</var>(b) Twenty percent of the fund is dedicated and may be appropriated for early <br/>
<a id="pl.1.20"></a><var>1.20</var>childhood development and family education.<br/>
<a id="pl.1.21"></a><var>1.21</var>(c) Twenty percent of the fund is dedicated and may be appropriated for research <br/>
<a id="pl.1.22"></a><var>1.22</var>and development of bioscience and medical technology businesses and employment <br/>
<a id="pl.1.23"></a><var>1.23</var>opportunities. During the first two years, 50 percent of the grants authorized by this <br/>
<a id="pl.1.24"></a><var>1.24</var>paragraph shall be for attracting bioscience and high-technology jobs to the Elk Run Park <br/>
<a id="pl.1.25"></a><var>1.25</var>and the University of Minnesota Research Parks.<br/>
<a id="pl.2.1"></a><var>2.1</var>(d) Twenty percent of the fund is dedicated and may be appropriated for athletic, <br/>
<a id="pl.2.2"></a><var>2.2</var>recreational, and extracurricular facilities and programs and to stimulate capital <br/>
<a id="pl.2.3"></a><var>2.3</var>improvements and employment.<br/>
<a id="pl.2.4"></a><var>2.4</var>(e) Twenty percent of the fund is dedicated and may be appropriated for general <br/>
<a id="pl.2.5"></a><var>2.5</var>fund expenditures.<br/>
<br/>
<a id="bill.0.2.0"></a><a id="pl.2.6"></a><var>2.6</var>    Sec. 2. Minnesota Statutes 2008, section 240.07, subdivision 3, is amended to read:<br/>
<a id="pl.2.7"></a><var>2.7</var>    Subd. 3. <b>License issuance.</b> (a) If after considering the information received from <br/>
<a id="pl.2.8"></a><var>2.8</var>the hearing and investigations, the commission determines that the applicant will conduct <br/>
<a id="pl.2.9"></a><var>2.9</var>horse racing in accordance with all applicable laws and rules, will not adversely affect the <br/>
<a id="pl.2.10"></a><var>2.10</var>public health, welfare, and safety, that the license will not create a competitive situation <br/>
<a id="pl.2.11"></a><var>2.11</var>that will adversely affect racing and the public interest and that the applicant is fit to <br/>
<a id="pl.2.12"></a><var>2.12</var>sponsor and manage racing, the commission may issue a class B license.<br/>
<a id="pl.2.13"></a><var>2.13</var>(b) If the commission determines that the licensee will operate a card club in <br/>
<a id="pl.2.14"></a><var>2.14</var>accordance with all applicable law and rules and the applicant's approved plan of operation <br/>
<a id="pl.2.15"></a><var>2.15</var>under section 
         <statute_ref>240.30, subdivision 6</statute_ref>, that the operation of a card club by the licensee will <br/>
<a id="pl.2.16"></a><var>2.16</var>not adversely affect the public health, welfare, and safety, and that the licensee is fit to <br/>
<a id="pl.2.17"></a><var>2.17</var>operate a card club, the commission may include with the class B license an authorization <br/>
<a id="pl.2.18"></a><var>2.18</var>to conduct a card club at the licensee's class A racetrack as provided in section 
         <statute_ref>240.30</statute_ref>. <br/>
<a id="pl.2.19"></a><var>2.19</var>The commission may give an interim authorization for the operation of a card club that <br/>
<a id="pl.2.20"></a><var>2.20</var>is effective until the expiration of the licensee's class B license and may charge for the <br/>
<a id="pl.2.21"></a><var>2.21</var>interim authorization a proportionate amount of the additional class B license fee under <br/>
<a id="pl.2.22"></a><var>2.22</var>section 
         <statute_ref>240.10</statute_ref>.  <br/>
<a id="pl.2.23"></a><var>2.23</var>(c) If the commission determines that the licensee will operate additional gambling <br/>
<a id="pl.2.24"></a><var>2.24</var>activities under section 240.31 in accordance with applicable laws and rules and the <br/>
<a id="pl.2.25"></a><var>2.25</var>applicant's approved plan of operation, and that the operation of the activity will not <br/>
<a id="pl.2.26"></a><var>2.26</var>adversely affect the public health, welfare, and safety, and that the licensee is fit to conduct <br/>
<a id="pl.2.27"></a><var>2.27</var>the activity, the commission may include with the class B license an authorization to <br/>
<a id="pl.2.28"></a><var>2.28</var>conduct additional gambling activities at the licensee's class A racetrack as provided in <br/>
<a id="pl.2.29"></a><var>2.29</var>section 240.31. The commission may give an interim authorization for the operation of <br/>
<a id="pl.2.30"></a><var>2.30</var>the activity that is effective until the expiration of the licensee's class B license. The <br/>
<a id="pl.2.31"></a><var>2.31</var>commission shall not authorize a class B licensee to conduct gambling activities, pursuant <br/>
<a id="pl.2.32"></a><var>2.32</var>to section 240.31, unless the licensee has, within the preceding 12 months, conducted 75 <br/>
<a id="pl.2.33"></a><var>2.33</var>days of live racing, consisting of not less than eight live races on each racing day, at the <br/>
<a id="pl.2.34"></a><var>2.34</var>class A facility where the licensee conducts racing. For licensees seeking approval for the <br/>
<a id="pl.2.35"></a><var>2.35</var>first time, the 75-day racing requirement shall be deemed to have been met if the licensee <br/>
<a id="pl.3.1"></a><var>3.1</var>has applied for and been granted at least 75 days of live racing to be conducted in the next <br/>
<a id="pl.3.2"></a><var>3.2</var>race meet. The live racing requirement established by this paragraph may be adjusted <br/>
<a id="pl.3.3"></a><var>3.3</var>by written agreement between a class B licensee and the horsepersons' organization <br/>
<a id="pl.3.4"></a><var>3.4</var>representing the majority of all owners and trainers licensed by the commission. Any <br/>
<a id="pl.3.5"></a><var>3.5</var>agreement entered into under this paragraph must be filed with the commission.<br/>
<a id="pl.3.6"></a><var>3.6</var>(d) The license is for a period of one year.<br/>
<br/>
<a id="bill.0.3.0"></a><a id="pl.3.7"></a><var>3.7</var>    Sec. 3. <b>[240.31] OTHER GAMES.</b><br/>
<a id="pl.3.8"></a><var>3.8</var>    Subdivision 1. <b>Authorization.</b> The commission may authorize a class B operator <br/>
<a id="pl.3.9"></a><var>3.9</var>of a class A racetrack, which is specifically authorized to conduct gambling activities in <br/>
<a id="pl.3.10"></a><var>3.10</var>addition to pari-mutuel horse race wagering, to operate gaming machines and to conduct <br/>
<a id="pl.3.11"></a><var>3.11</var>banked card games. For the purposes of this subdivision, a "gaming machine" means any <br/>
<a id="pl.3.12"></a><var>3.12</var>device that may provide something of value to a person operating the device, the award of <br/>
<a id="pl.3.13"></a><var>3.13</var>which is based, in whole or in part, upon chance.<br/>
<a id="pl.3.14"></a><var>3.14</var>    Subd. 2. <b>Installation and operation permitted.</b> A class B licensee authorized by <br/>
<a id="pl.3.15"></a><var>3.15</var>this section may own or lease, install, maintain, and operate gaming machines within <br/>
<a id="pl.3.16"></a><var>3.16</var>the licensed premises of the licensee's class A racetrack, as defined in the approved <br/>
<a id="pl.3.17"></a><var>3.17</var>class A license, if the commission has authorized the operation as provided in section <br/>
<a id="pl.3.18"></a><var>3.18</var>240.07, subdivision 3, paragraph (c). The commission may withdraw its authorization <br/>
<a id="pl.3.19"></a><var>3.19</var>for operation of gaming machines at any time for a violation of a law or rule governing <br/>
<a id="pl.3.20"></a><var>3.20</var>gaming machine operation.<br/>
<a id="pl.3.21"></a><var>3.21</var>    Subd. 3. <b>Supervision.</b> (a) A class B licensee who operates gaming machines at <br/>
<a id="pl.3.22"></a><var>3.22</var>the licensee's class A racetrack is responsible for conducting and supervising gaming <br/>
<a id="pl.3.23"></a><var>3.23</var>machine play and operation; providing all necessary equipment, services, and personnel; <br/>
<a id="pl.3.24"></a><var>3.24</var>and reimbursing the commission for costs related to gaming machine regulation and <br/>
<a id="pl.3.25"></a><var>3.25</var>enforcement.<br/>
<a id="pl.3.26"></a><var>3.26</var>(b) The commission and its representatives, and the director of the Division of <br/>
<a id="pl.3.27"></a><var>3.27</var>Alcohol and Gambling Enforcement and the division's representatives, have the right, at <br/>
<a id="pl.3.28"></a><var>3.28</var>any time without prior notice and without a search warrant, to (1) inspect the licensee's <br/>
<a id="pl.3.29"></a><var>3.29</var>books, records, and other indicators of total plays on and gross receipts from gaming <br/>
<a id="pl.3.30"></a><var>3.30</var>machines on the licensed premises, (2) inspect any computer hardware or software that <br/>
<a id="pl.3.31"></a><var>3.31</var>relate to the operation of gaming machines on the licensed premises, and (3) have <br/>
<a id="pl.3.32"></a><var>3.32</var>unrestricted access to any part of any gaming machine on the licensed premises.<br/>
<a id="pl.3.33"></a><var>3.33</var>    Subd. 4. <b>Plan of operation.</b> (a) The commission shall not authorize a class <br/>
<a id="pl.3.34"></a><var>3.34</var>B licensee to operate gaming machines unless the licensee has submitted, and the <br/>
<a id="pl.3.35"></a><var>3.35</var>commission has approved, a plan of operation for gaming machine operation. The plan <br/>
<a id="pl.4.1"></a><var>4.1</var>must set forth all necessary details for the operation of gaming machines, including but <br/>
<a id="pl.4.2"></a><var>4.2</var>not limited to:<br/>
<a id="pl.4.3"></a><var>4.3</var>(1) types of games to be offered;<br/>
<a id="pl.4.4"></a><var>4.4</var>(2) designation of the licensee's employees who will have access to the interior <br/>
<a id="pl.4.5"></a><var>4.5</var>and exterior of gaming machines;<br/>
<a id="pl.4.6"></a><var>4.6</var>(3) designation of the licensee's employees who will have access to cash inserted <br/>
<a id="pl.4.7"></a><var>4.7</var>and removed from gaming machines;<br/>
<a id="pl.4.8"></a><var>4.8</var>(4) security measures and internal control systems to be adopted and implemented <br/>
<a id="pl.4.9"></a><var>4.9</var>by the licensee to ensure integrity of gaming machine play and security of all money <br/>
<a id="pl.4.10"></a><var>4.10</var>removed from gaming machines;<br/>
<a id="pl.4.11"></a><var>4.11</var>(5) measures to be adopted and implemented by the licensee to ensure the security <br/>
<a id="pl.4.12"></a><var>4.12</var>and safety of patrons of that portion of the licensed premises where gaming machines <br/>
<a id="pl.4.13"></a><var>4.13</var>are operated;<br/>
<a id="pl.4.14"></a><var>4.14</var>(6) a description of the design, manufacture, and operation of gaming machines the <br/>
<a id="pl.4.15"></a><var>4.15</var>licensee will own or lease and operate; and<br/>
<a id="pl.4.16"></a><var>4.16</var>(7) a plan for the training of all personnel who work in that portion of the licensed <br/>
<a id="pl.4.17"></a><var>4.17</var>premises where gaming machines are operated in the identification of problem gamblers <br/>
<a id="pl.4.18"></a><var>4.18</var>and appropriate action to prevent or control problem gambling.<br/>
<a id="pl.4.19"></a><var>4.19</var>(b) Deviation from the standards in paragraph (a) requires prior approval of the <br/>
<a id="pl.4.20"></a><var>4.20</var>commission in the same manner as amendments to the plan of operation under this <br/>
<a id="pl.4.21"></a><var>4.21</var>subdivision.<br/>
<a id="pl.4.22"></a><var>4.22</var>    Subd. 5. <b>Amendments to plan.</b> The licensee may amend the plan of operation and <br/>
<a id="pl.4.23"></a><var>4.23</var>implement those amendments only with the commission's prior approval.<br/>
<a id="pl.4.24"></a><var>4.24</var>    Subd. 6. <b>Violations of plan.</b> (a) A violation of an approved plan of operation, <br/>
<a id="pl.4.25"></a><var>4.25</var>or implementation of an amendment to an approved plan of operation without the <br/>
<a id="pl.4.26"></a><var>4.26</var>commission's prior approval, is deemed to be a violation of law or a rule of the commission.<br/>
<a id="pl.4.27"></a><var>4.27</var>(b) Gaming machine play and operation are deemed to be relevant to the integrity of <br/>
<a id="pl.4.28"></a><var>4.28</var>horse racing activities in Minnesota for purposes of sections 240.03; 240.06, subdivision <br/>
<a id="pl.4.29"></a><var>4.29</var>7; 240.08; and 240.27, subdivision 1.<br/>
<a id="pl.4.30"></a><var>4.30</var>    Subd. 7. <b>Removal of nonconforming machines.</b> The commission or its authorized <br/>
<a id="pl.4.31"></a><var>4.31</var>representatives, and the director of alcohol and gambling enforcement and the director's <br/>
<a id="pl.4.32"></a><var>4.32</var>authorized representatives, may administratively order a class B licensee to remove <br/>
<a id="pl.4.33"></a><var>4.33</var>from use any gaming machine that the commission or director determines to be out of <br/>
<a id="pl.4.34"></a><var>4.34</var>compliance with the approved plan of operation.<br/>
<a id="pl.5.1"></a><var>5.1</var>    Subd. 8. <b>Minimum age for play.</b> A licensee may not permit a person under the age <br/>
<a id="pl.5.2"></a><var>5.2</var>of 18 to play a game on or win a prize from a gaming machine that the licensee operates. <br/>
<a id="pl.5.3"></a><var>5.3</var>Violation of this subdivision is a gross misdemeanor.<br/>
<a id="pl.5.4"></a><var>5.4</var>    Subd. 9. <b>Posting of notice.</b> A class B licensee who has been authorized to <br/>
<a id="pl.5.5"></a><var>5.5</var>operate gaming machines must prominently post, in the portion of the licensed premises <br/>
<a id="pl.5.6"></a><var>5.6</var>where gaming machines are operated, the toll-free telephone number established by the <br/>
<a id="pl.5.7"></a><var>5.7</var>commissioner of human services in connection with the compulsive gambling program <br/>
<a id="pl.5.8"></a><var>5.8</var>established under section 245.98.<br/>
<a id="pl.5.9"></a><var>5.9</var>    Subd. 10. <b>Local regulation prohibited.</b> Except as provided in section 240.17, a <br/>
<a id="pl.5.10"></a><var>5.10</var>political subdivision may not prohibit or regulate gaming machines authorized under this <br/>
<a id="pl.5.11"></a><var>5.11</var>section, or impose a tax on the proceeds of gaming machines authorized under this section.<br/>
<a id="pl.5.12"></a><var>5.12</var>    Subd. 11. <b>Purses.</b> From the sum of all money received by the licensee from <br/>
<a id="pl.5.13"></a><var>5.13</var>gambling activities authorized under subdivision 1, less the amount paid out in prizes <br/>
<a id="pl.5.14"></a><var>5.14</var>and winnings and fees required, pursuant to subdivision 14, the licensee must set aside <br/>
<a id="pl.5.15"></a><var>5.15</var>a minimum of ten percent for purses for live horse races conducted at class A facilities <br/>
<a id="pl.5.16"></a><var>5.16</var>in the state. The minimum amount of purse set-aside is increased to 14 percent for any <br/>
<a id="pl.5.17"></a><var>5.17</var>activities conducted five years or more after the enactment of this section. Set-asides <br/>
<a id="pl.5.18"></a><var>5.18</var>required by this paragraph shall be transmitted to the commission, which shall establish <br/>
<a id="pl.5.19"></a><var>5.19</var>an account for each breed racing in the state. The commission shall allocate these funds <br/>
<a id="pl.5.20"></a><var>5.20</var>based on the percentage of wagering handled on each breed for races conducted at class <br/>
<a id="pl.5.21"></a><var>5.21</var>A facilities as compared to the total amount of wagering handled on races conducted at <br/>
<a id="pl.5.22"></a><var>5.22</var>class A facilities during the previous calendar year. The commission shall transfer 15 <br/>
<a id="pl.5.23"></a><var>5.23</var>percent of the amount allocated to each breed to its breeder's fund to be distributed in the <br/>
<a id="pl.5.24"></a><var>5.24</var>manner provided for money generated by full racing card simulcasting, pursuant to section <br/>
<a id="pl.5.25"></a><var>5.25</var>240.15, subdivision 6. The commission shall routinely transfer the remaining money in <br/>
<a id="pl.5.26"></a><var>5.26</var>the accounts to the licensees conducting racing for each breed and direct the licensee to <br/>
<a id="pl.5.27"></a><var>5.27</var>augment the purses for that breed with the funds received from the commission. Purse <br/>
<a id="pl.5.28"></a><var>5.28</var>augmentations required pursuant to this subdivision are in addition to purse payments <br/>
<a id="pl.5.29"></a><var>5.29</var>otherwise established by law or contract.<br/>
<a id="pl.5.30"></a><var>5.30</var>    Subd. 12. <b>Reimbursement to commission.</b> The commission shall require that <br/>
<a id="pl.5.31"></a><var>5.31</var>the licensee reimburse it for the commission's actual costs of regulating any additional <br/>
<a id="pl.5.32"></a><var>5.32</var>gambling activities under this section. Amounts received under this subdivision must be <br/>
<a id="pl.5.33"></a><var>5.33</var>deposited as provided in section 240.155, subdivision 1.<br/>
<a id="pl.5.34"></a><var>5.34</var>    Subd. 13. <b>Reporting.</b> The class B licensee shall report all income generated by the <br/>
<a id="pl.5.35"></a><var>5.35</var>additional gambling activities in an annual report to the Racing Commission. The report <br/>
<a id="pl.6.1"></a><var>6.1</var>shall also account for all costs of operation, taxes paid, purses paid, and amounts paid to <br/>
<a id="pl.6.2"></a><var>6.2</var>the breeder's fund.<br/>
<a id="pl.6.3"></a><var>6.3</var>    Subd. 14. <b>Fee.</b> The licensee must pay to the commission an annual gambling <br/>
<a id="pl.6.4"></a><var>6.4</var>activities fee equal to 32 percent of all money received by the licensee from gambling <br/>
<a id="pl.6.5"></a><var>6.5</var>activities authorized under this section, less the amount paid out in prizes and winnings. <br/>
<a id="pl.6.6"></a><var>6.6</var>The fee established by this subdivision shall be 42 percent on amounts received by a <br/>
<a id="pl.6.7"></a><var>6.7</var>licensee in excess of $125,000,000 in a calendar year, less the amount paid out in prizes <br/>
<a id="pl.6.8"></a><var>6.8</var>and winnings. The licensee must pay this fee on a quarterly basis. The commission shall <br/>
<a id="pl.6.9"></a><var>6.9</var>distribute the fee revenue it collects, on a quarterly basis, as follows:<br/>
<a id="pl.6.10"></a><var>6.10</var>(1) one percent of the amount paid by each licensee to the city in which the licensee <br/>
<a id="pl.6.11"></a><var>6.11</var>is conducting games authorized, pursuant to this section;<br/>
<a id="pl.6.12"></a><var>6.12</var>(2) one percent to the county in which the licensee is conducting games authorized, <br/>
<a id="pl.6.13"></a><var>6.13</var>pursuant to this section; and<br/>
<a id="pl.6.14"></a><var>6.14</var>(3) the remainder to the commissioner of revenue for deposit in the jobs, family, and <br/>
<a id="pl.6.15"></a><var>6.15</var>economic development fund established in section 3.886.<br/>
<br/>
<a id="bill.0.4.0"></a><a id="pl.6.16"></a><var>6.16</var>    Sec. 4. Minnesota Statutes 2008, section 240.35, subdivision 1, is amended to read:<br/>
<a id="pl.6.17"></a><var>6.17</var>    Subdivision 1. <b>Generally.</b> A licensee of the commission may detain a person if the <br/>
<a id="pl.6.18"></a><var>6.18</var>licensee has probable cause to believe that the person detained has violated section 
         <statute_ref>609.76</statute_ref> <br/>
<a id="pl.6.19"></a><var>6.19</var>while at a card club authorized by section 
         <statute_ref>240.30</statute_ref>, or while participating in gambling <br/>
<a id="pl.6.20"></a><var>6.20</var>activities authorized by section 240.31. For purposes of this section, "licensee" means the <br/>
<a id="pl.6.21"></a><var>6.21</var>commission's director of racing security or a security officer licensed under Minnesota <br/>
<a id="pl.6.22"></a><var>6.22</var>Rules, chapter 7878.  <br/>
<br/>
<a id="bill.0.5.0"></a><a id="pl.6.23"></a><var>6.23</var>    Sec. 5. Minnesota Statutes 2008, section 299L.07, subdivision 2, is amended to read:<br/>
<a id="pl.6.24"></a><var>6.24</var>    Subd. 2. <b>Exclusions.</b> Notwithstanding subdivision 1, a gambling device:<br/>
<a id="pl.6.25"></a><var>6.25</var>(1) may be sold by a person who is not licensed under this section, if the person (i) is <br/>
<a id="pl.6.26"></a><var>6.26</var>not engaged in the trade or business of selling gambling devices, and (ii) does not sell <br/>
<a id="pl.6.27"></a><var>6.27</var>more than one gambling device in any calendar year;<br/>
<a id="pl.6.28"></a><var>6.28</var>(2) may be sold by the governing body of a federally recognized Indian tribe <br/>
<a id="pl.6.29"></a><var>6.29</var>described in subdivision 2a, paragraph (b), clause (1), which is not licensed under this <br/>
<a id="pl.6.30"></a><var>6.30</var>section, if (i) the gambling device was operated by the Indian tribe, (ii) the sale is to <br/>
<a id="pl.6.31"></a><var>6.31</var>a distributor licensed under this section, and (iii) the licensed distributor notifies the <br/>
<a id="pl.6.32"></a><var>6.32</var>commissioner of the purchase, in the same manner as is required when the licensed <br/>
<a id="pl.6.33"></a><var>6.33</var>distributor ships a gambling device into Minnesota;<br/>
<a id="pl.7.1"></a><var>7.1</var>(3) may be possessed by a person not licensed under this section if the person holds <br/>
<a id="pl.7.2"></a><var>7.2</var>a permit issued under section 
         <statute_ref>299L.08</statute_ref>; and <br/>
<a id="pl.7.3"></a><var>7.3</var>(4) may be possessed by a state agency, with the written authorization of the director, <br/>
<a id="pl.7.4"></a><var>7.4</var>for display or evaluation purposes only and not for the conduct of gambling; and<br/>
<a id="pl.7.5"></a><var>7.5</var>(5) may be possessed by a licensee authorized to conduct gambling activities <br/>
<a id="pl.7.6"></a><var>7.6</var>pursuant to section 240.31, subdivision 1.<br/>
<br/>
<a id="bill.0.6.0"></a><a id="pl.7.7"></a><var>7.7</var>    Sec. 6. Minnesota Statutes 2008, section 299L.07, subdivision 2a, is amended to read:<br/>
<a id="pl.7.8"></a><var>7.8</var>    Subd. 2a. <b>Restrictions.</b> (a) A manufacturer licensed under this section may sell, <br/>
<a id="pl.7.9"></a><var>7.9</var>offer to sell, lease, or rent, in whole or in part, a gambling device only to a distributor <br/>
<a id="pl.7.10"></a><var>7.10</var>licensed under this section or to a licensee authorized to conduct gambling activities <br/>
<a id="pl.7.11"></a><var>7.11</var>pursuant to section 240.31, subdivision 1.<br/>
<a id="pl.7.12"></a><var>7.12</var>(b) A distributor licensed under this section may sell, offer to sell, market, rent, <br/>
<a id="pl.7.13"></a><var>7.13</var>lease, or otherwise provide, in whole or in part, a gambling device only to:<br/>
<a id="pl.7.14"></a><var>7.14</var>(1) the governing body of a federally recognized Indian tribe that is authorized <br/>
<a id="pl.7.15"></a><var>7.15</var>to operate the gambling device under a tribal state compact under the Indian Gaming <br/>
<a id="pl.7.16"></a><var>7.16</var>Regulatory Act, Public Law 100-497, and future amendments to it;<br/>
<a id="pl.7.17"></a><var>7.17</var>(2) a person for use in the person's dwelling for display or amusement purposes in a <br/>
<a id="pl.7.18"></a><var>7.18</var>manner that does not afford players an opportunity to obtain anything of value;<br/>
<a id="pl.7.19"></a><var>7.19</var>(3) another distributor licensed under this section; or<br/>
<a id="pl.7.20"></a><var>7.20</var>(4) a person in another state who is authorized under the laws of that state to possess <br/>
<a id="pl.7.21"></a><var>7.21</var>the gambling device; or<br/>
<a id="pl.7.22"></a><var>7.22</var>(5) to a licensee authorized to conduct gambling activities pursuant to section <br/>
<a id="pl.7.23"></a><var>7.23</var>240.31, subdivision 1.<br/>
<br/>
<a id="bill.0.7.0"></a><a id="pl.7.24"></a><var>7.24</var>    Sec. 7. Minnesota Statutes 2008, section 340A.410, subdivision 5, is amended to read:<br/>
<a id="pl.7.25"></a><var>7.25</var>    Subd. 5. <b>Gambling prohibited.</b> (a) Except as otherwise provided in this <br/>
<a id="pl.7.26"></a><var>7.26</var>subdivision, no retail establishment licensed to sell alcoholic beverages may keep, possess, <br/>
<a id="pl.7.27"></a><var>7.27</var>or operate, or permit the keeping, possession, or operation on the licensed premises of dice <br/>
<a id="pl.7.28"></a><var>7.28</var>or any gambling device as defined in section 
         <statute_ref>349.30</statute_ref>, or permit gambling therein.  <br/>
<a id="pl.7.29"></a><var>7.29</var>(b) Gambling equipment may be kept or operated and raffles conducted on licensed <br/>
<a id="pl.7.30"></a><var>7.30</var>premises and adjoining rooms when the use of the gambling equipment is authorized by <br/>
<a id="pl.7.31"></a><var>7.31</var>(1) chapter 349, (2) a tribal ordinance in conformity with the Indian Gaming Regulatory <br/>
<a id="pl.7.32"></a><var>7.32</var>Act, Public Law 100-497, or (3) a tribal-state compact authorized under section 
         <statute_ref>3.9221</statute_ref>.  <br/>
<a id="pl.7.33"></a><var>7.33</var>(c) Lottery tickets may be purchased and sold within the licensed premises as <br/>
<a id="pl.7.34"></a><var>7.34</var>authorized by the director of the lottery under chapter 349A.<br/>
<a id="pl.8.1"></a><var>8.1</var>(d) Dice may be kept and used on licensed premises and adjoining rooms as <br/>
<a id="pl.8.2"></a><var>8.2</var>authorized by section 
         <statute_ref>609.761, subdivision 4</statute_ref>.  <br/>
<a id="pl.8.3"></a><var>8.3</var>(e) Gambling devices may be operated on the premises of a licensed racetrack as <br/>
<a id="pl.8.4"></a><var>8.4</var>authorized by section 240.31, subdivision 1.<br/>
<br/>
<a id="bill.0.8.0"></a><a id="pl.8.5"></a><var>8.5</var>    Sec. 8. Minnesota Statutes 2008, section 541.20, is amended to read:<br/>
<a id="pl.8.6"></a><var>8.6</var><b>541.20 RECOVERY OF MONEY LOST.</b><br/>
<a id="pl.8.7"></a><var>8.7</var>Every person who, by playing at cards, dice, or other game, or by betting on the hands <br/>
<a id="pl.8.8"></a><var>8.8</var>or sides of such as are gambling, shall lose to any person so playing or betting any sum of <br/>
<a id="pl.8.9"></a><var>8.9</var>money or any goods, and pays or delivers the same, or any part thereof, to the winner, <br/>
<a id="pl.8.10"></a><var>8.10</var>may sue for and recover such money by a civil action, before any court of competent <br/>
<a id="pl.8.11"></a><var>8.11</var>jurisdiction. For purposes of this section, gambling shall not include pari-mutuel or other <br/>
<a id="pl.8.12"></a><var>8.12</var>wagering activity conducted under a license issued pursuant to chapter 240, purchase or <br/>
<a id="pl.8.13"></a><var>8.13</var>sale of tickets in the state lottery, or gambling authorized under chapters 349 and 349A.<br/>
<br/>
<a id="bill.0.9.0"></a><a id="pl.8.14"></a><var>8.14</var>    Sec. 9. Minnesota Statutes 2008, section 541.21, is amended to read:<br/>
<a id="pl.8.15"></a><var>8.15</var><b>541.21 COMMITMENTS FOR GAMBLING DEBT VOID.</b><br/>
<a id="pl.8.16"></a><var>8.16</var>Every note, bill, bond, mortgage, or other security or conveyance in which the whole <br/>
<a id="pl.8.17"></a><var>8.17</var>or any part of the consideration shall be for any money or goods won by gambling or <br/>
<a id="pl.8.18"></a><var>8.18</var>playing at cards, dice, or any other game whatever, or by betting on the sides or hands <br/>
<a id="pl.8.19"></a><var>8.19</var>of any person gambling, or for reimbursing or repaying any money knowingly lent or <br/>
<a id="pl.8.20"></a><var>8.20</var>advanced at the time and place of such gambling or betting, or lent and advanced for any <br/>
<a id="pl.8.21"></a><var>8.21</var>gambling or betting to any persons so gambling or betting, shall be void and of no effect <br/>
<a id="pl.8.22"></a><var>8.22</var>as between the parties to the same, and as to all persons except such as hold or claim under <br/>
<a id="pl.8.23"></a><var>8.23</var>them in good faith, without notice of the illegality of the consideration of such contract or <br/>
<a id="pl.8.24"></a><var>8.24</var>conveyance. The provisions of this section shall not apply to: (1) pari-mutuel or other <br/>
<a id="pl.8.25"></a><var>8.25</var>wagering activity conducted under a license issued pursuant to chapter 240; (2) purchase <br/>
<a id="pl.8.26"></a><var>8.26</var>of tickets in the state lottery under chapter 349A; (3) gaming activities conducted pursuant <br/>
<a id="pl.8.27"></a><var>8.27</var>to the Indian Gaming Regulatory Act, 25 U.S.C. 2701 et seq.; or (4) lawful gambling <br/>
<a id="pl.8.28"></a><var>8.28</var>activities permitted under chapter 349.<br/>
<br/>
<a id="bill.0.10.0"></a><a id="pl.8.29"></a><var>8.29</var>    Sec. 10. <b>REPORTS ON USE OF FEDERAL MONEY ON BIOMASS </b><br/>
<a id="pl.8.30"></a><var>8.30</var><b>ESTABLISHMENT.</b><br/>
<a id="pl.8.31"></a><var>8.31</var>The commissioner of agriculture shall study and report to the legislative committees <br/>
<a id="pl.8.32"></a><var>8.32</var>with jurisdiction over agriculture and energy policy and finance on the use made of federal <br/>
<a id="pl.8.33"></a><var>8.33</var>programming money authorized by title IX of the 2008 Farm Bill for biomass-related <br/>
<a id="pl.9.1"></a><var>9.1</var>research, development, production, and establishment in Minnesota. The commissioner <br/>
<a id="pl.9.2"></a><var>9.2</var>may make recommendations regarding additional, future utilization of biomass in <br/>
<a id="pl.9.3"></a><var>9.3</var>Minnesota in any interim or final report. The commissioner shall submit interim reports <br/>
<a id="pl.9.4"></a><var>9.4</var>by the first week of February annually through 2012 and submit the final report by the <br/>
<a id="pl.9.5"></a><var>9.5</var>first week of January 2013.<br/>
<a id="pl.9.6"></a><var>9.6</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment. <br/>