HF 873

1st Unofficial Engrossment - 87th Legislature (2011 - 2012)

Posted on 04/02/2012 08:58 a.m.

1.1A bill for an act 1.2relating to gambling; authorizing the director of the State Lottery to establish 1.3gaming machines at a licensed racetrack; imposing a fee on gaming machine 1.4revenue; providing powers and duties to the director; prohibiting detached 1.5facilities at a racetrack licensed for gaming machines: restricting alcohol sales 1.6and consumption near gaming machines at licensed racetracks; dedicating funds 1.7to reduce the education payment shift and the property tax recognition shift; 1.8appropriating money;amending Minnesota Statutes 2010, sections 240.03; 1.9240.13, by adding a subdivision; 240.14, by adding a subdivision; 299L.07, 1.10subdivisions 2, 2a; 349A.01, subdivision 10, by adding subdivisions; 349A.10, 1.11subdivision 3; 349A.13; proposing coding for new law in Minnesota Statutes, 1.12chapters 297A; 349A; repealing Minnesota Statutes 2010, section 240.30, 1.13subdivisions 3, 8. 1.14BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.15ARTICLE 1 1.16RACINO 1.17    Section 1. new text begin [47.522] PROHIBITION NEAR RACINO. new text end 1.18 new text begin No detached facility may be located on the premises of a racetrack referenced in new text end 1.19 new text begin section 349A.17, subdivision 1, paragraph (a). new text end 1.20    Sec. 2. Minnesota Statutes 2010, section 240.03, is amended to read: 1.21240.03 COMMISSION POWERS AND DUTIES. 1.22The commission has the following powers and duties: 1.23(1) to regulate horse racing in Minnesota to ensure that it is conducted in the public 1.24interest; 1.25(2) to issue licenses as provided in this chapter; 1.26(3) to enforce all laws and rules governing horse racing; 2.1(4) to collect and distribute all taxes provided for in this chapter; 2.2(5) to conduct necessary investigations and inquiries and compel the submission of 2.3information, documents, and records it deems necessary to carry out its duties; 2.4(6) to supervise the conduct of pari-mutuel betting on horse racing; 2.5(7) to employ and supervise personnel under this chapter; 2.6(8) to determine the number of racing days to be held in the state and at each 2.7licensed racetrack; 2.8(9) to take all necessary steps to ensure the integrity of racing in Minnesota; and 2.9(10) to impose fees on the racing and card playing industries sufficient to recover the 2.10operating costs of the commission with the approval of the legislature according to section 2.1116A.1283 . Notwithstanding section 16A.1283, when the legislature is not in session, the 2.12commissioner of management and budget may grant interim approval for any new fees 2.13or adjustments to existing fees that are not statutorily specified, until such time as the 2.14legislature reconvenes and acts upon the new fees or adjustments. As part of its biennial 2.15budget request, the commission must propose changes to its fees that will be sufficient to 2.16recover the operating costs of the commission. new text begin ; and new text end 2.17 new text begin (11) to take all necessary steps to ensure the security of all activities in a class A new text end 2.18 new text begin licensed racetrack. The duties and responsibilities of the commission include but are not new text end 2.19 new text begin limited to licensing employees of a class A licensee and vendors to the class A licensee new text end 2.20 new text begin involved in the conduct of gaming machines authorized by a location contract with the new text end 2.21 new text begin director of the State Lottery under section 349A.17 and overall surveillance and security new text end 2.22 new text begin of all conduct on all facilities of a licensed racetrack. The commission shall require that new text end 2.23 new text begin a class A licensed racetrack reimburse it for the commission's actual costs, including new text end 2.24 new text begin personnel costs, for conducting activities provided in this clause and amounts received new text end 2.25 new text begin must be deposited as provided in section 240.155, subdivision 1. The commission shall new text end 2.26 new text begin review procedures of the class A licensee to ensure compliance with section 240.13, new text end 2.27 new text begin subdivision 5a. new text end 2.28    Sec. 3. Minnesota Statutes 2010, section 240.13, is amended by adding a subdivision 2.29to read: 2.30     new text begin Subd. 5a. new text end new text begin Equine industry improvement fund. new text end new text begin (a) To compensate the horse new text end 2.31 new text begin racing industry for the presence of lottery gaming machines at class A racing facilities, new text end 2.32 new text begin the commission shall establish and maintain an equine industry improvement fund. new text end 2.33 new text begin Each licensee holding a location contract with the lottery director shall, as directed new text end 2.34 new text begin by the commission, transmit an amount equal to 12 percent of the location contract new text end 2.35 new text begin compensation received from the lottery director to the commission for deposit into the new text end 3.1 new text begin equine industry improvement fund. Seventy-five percent of the funds shall be allocated new text end 3.2 new text begin for purse supplements. The commission shall routinely transfer 80 percent of the fund new text end 3.3 new text begin allocated for purse supplements to a licensee conducting live racing for more than one new text end 3.4 new text begin breed of horse and 20 percent to a licensee conducting live racing for only one breed of new text end 3.5 new text begin horse and direct the licensee to use the funds to supplement purses offered for live races. new text end 3.6 new text begin Purse supplements required under this subdivision are in addition to purse payments new text end 3.7 new text begin otherwise established by law or contract. The location contract holder and the organization new text end 3.8 new text begin representing the majority of horsepersons racing at the location contract holder's racetrack new text end 3.9 new text begin may, by written contract, agree to use a portion of the transferred funds for racing-related new text end 3.10 new text begin purposes other than purse supplementation. new text end 3.11 new text begin (b) The commission shall allocate 20 percent of the fund for breeder's fund purposes new text end 3.12 new text begin and shall transmit that amount to the breeder's fund for the benefit of each breed racing at new text end 3.13 new text begin a class A licensed facility hosting lottery gaming machines. Amounts transferred shall new text end 3.14 new text begin be in the same proportions established, under this subdivision, for purse supplements. new text end 3.15 new text begin Amounts transferred to a breeder's fund shall be used for the purposes of section 240.18, new text end 3.16 new text begin subdivisions 2, paragraph (d), and 3, paragraph (b), subject to the proportionality new text end 3.17 new text begin requirement in section 240.18, subdivision 1. new text end 3.18 new text begin (c) Five percent of the fund shall be placed in an equine industry enhancement fund new text end 3.19 new text begin established by the commission. The commission shall award grants from this account new text end 3.20 new text begin designed to support and improve the nonracing equine industry including, but not limited new text end 3.21 new text begin to, construction of facilities and trails, production of shows, and issues related to retired new text end 3.22 new text begin horses. new text end 3.23    Sec. 4. Minnesota Statutes 2010, section 240.14, is amended by adding a subdivision 3.24to read: 3.25     new text begin Subd. 5. new text end new text begin Lottery contract holder; minimum racing days. new text end new text begin Licensees holding new text end 3.26 new text begin location contracts with the director of the lottery, who are authorized to conduct live racing new text end 3.27 new text begin for more than one breed of horse, shall conduct thoroughbred and quarter horse racing. new text end 3.28 new text begin In any year the licensee shall offer the equivalent of at least two quarter horse races for new text end 3.29 new text begin each racing day granted to the licensee by the commission, however, the licensee and the new text end 3.30 new text begin organization representing the majority of quarter horses owners licensed to race in the new text end 3.31 new text begin state may agree to a different number of live races to be offered. Scheduling of quarter new text end 3.32 new text begin horse races shall be as approved by the commission pursuant to section 240.03, clause (8). new text end 3.33 new text begin Willful failure to offer the races required by this subdivision shall subject the licensee to new text end 3.34 new text begin disciplinary action as deemed appropriate by the commission. new text end 4.1    Sec. 5. new text begin [297A.651] LOTTERY GAMING MACHINES; IN-LIEU FEE. new text end 4.2 new text begin Adjusted gross revenue from the operation of gaming machines authorized under new text end 4.3 new text begin chapter 349A is exempt from the tax imposed under section 297A.62 and chapter 297E new text end 4.4 new text begin and any other tax, license, permit, or assessment for conducting a gambling activity that is new text end 4.5 new text begin not imposed by this section. The State Lottery must, on or before the 20th day of each new text end 4.6 new text begin month, transmit to the commissioner an amount equal to the adjusted gross gaming new text end 4.7 new text begin machine revenue from the operation of gaming machines, as defined in section 349A.01, new text end 4.8 new text begin for the previous month multiplied by: (1) 25 percent of annual adjusted gross gaming new text end 4.9 new text begin machine revenue generated by each person that has a location contract under section new text end 4.10 new text begin 349A.17, subdivision 1, up to $150,000,000; (2) 30 percent of annual adjusted gross new text end 4.11 new text begin gaming machine revenue generated by each person that has a location contract under new text end 4.12 new text begin section 349A.17, subdivision 1, between $150,000,000 and $200,000,000; and (3) 40 new text end 4.13 new text begin percent of annual adjusted gross gaming machine revenue generated by each person that new text end 4.14 new text begin has a location contract under section 349A.17, subdivision 1, in excess of $200,000,000. new text end 4.15 new text begin The commissioner shall deposit the money transmitted under this section in the state new text end 4.16 new text begin treasury as provided in article 2. new text end 4.17    Sec. 6. Minnesota Statutes 2010, section 299L.07, subdivision 2, is amended to read: 4.18    Subd. 2. Exclusions. Notwithstanding subdivision 1, a gambling device: 4.19(1) may be sold by a person who is not licensed under this section, if the person (i) is 4.20not engaged in the trade or business of selling gambling devices, and (ii) does not sell 4.21more than one gambling device in any calendar year; 4.22(2) may be sold by the governing body of a federally recognized Indian tribe 4.23described in subdivision 2a, paragraph (b), clause (1), which is not licensed under this 4.24section, if (i) the gambling device was operated by the Indian tribe, (ii) the sale is to 4.25a distributor licensed under this section, and (iii) the licensed distributor notifies the 4.26commissioner of the purchase, in the same manner as is required when the licensed 4.27distributor ships a gambling device into Minnesota; 4.28(3) may be possessed by a person not licensed under this section if the person holds 4.29a permit issued under section 299L.08; and 4.30(4) may be possessed by a state agency, with the written authorization of the director, 4.31for display or evaluation purposes only and not for the conduct of gambling. new text begin ; and new text end 4.32 new text begin (5) may be possessed by the State Lottery or a person who has entered into a location new text end 4.33 new text begin contract with the State Lottery as authorized under chapter 349A. new text end 4.34    Sec. 7. Minnesota Statutes 2010, section 299L.07, subdivision 2a, is amended to read: 5.1    Subd. 2a. Restrictions. (a) A manufacturer licensed under this section may sell, 5.2offer to sell, lease, or rent, in whole or in part, a gambling device only to a distributor 5.3licensed under this section new text begin or to the State Lottery as authorized under chapter 349A new text end . 5.4(b) A distributor licensed under this section may sell, offer to sell, market, rent, 5.5lease, or otherwise provide, in whole or in part, a gambling device only to: 5.6(1) the governing body of a federally recognized Indian tribe that is authorized 5.7to operate the gambling device under a tribal state compact under the Indian Gaming 5.8Regulatory Act, Public Law 100-497, and future amendments to it; 5.9(2) a person for use in the person's dwelling for display or amusement purposes in a 5.10manner that does not afford players an opportunity to obtain anything of value; 5.11(3) another distributor licensed under this section; or 5.12(4) a person in another state who is authorized under the laws of that state to possess 5.13the gambling device. new text begin ; or new text end 5.14 new text begin (5) the State Lottery as authorized under chapter 349A. new text end 5.15    Sec. 8. Minnesota Statutes 2010, section 349A.01, is amended by adding a subdivision 5.16to read: 5.17     new text begin Subd. 1a. new text end new text begin Adjusted gross gaming machine revenue. new text end new text begin "Adjusted gross gaming new text end 5.18 new text begin machine revenue" means the sum of all money received by the lottery for gaming machine new text end 5.19 new text begin plays, other than promotional plays, less the amount paid out in prizes for gaming machine new text end 5.20 new text begin games. new text end 5.21    Sec. 9. Minnesota Statutes 2010, section 349A.01, is amended by adding a subdivision 5.22to read: 5.23     new text begin Subd. 6a. new text end new text begin Gaming machine. new text end new text begin "Gaming machine" means any electronic device new text end 5.24 new text begin which, upon insertion of money, coin, token, voucher, electronic card, or other new text end 5.25 new text begin consideration, allows the play of a game, authorized by the director, the outcome of which new text end 5.26 new text begin is determined entirely or partly by chance. A gaming machine may award a player a prize new text end 5.27 new text begin in the form of money, tokens, prize slips, or other authorized consideration. new text end 5.28    Sec. 10. Minnesota Statutes 2010, section 349A.01, is amended by adding a 5.29subdivision to read: 5.30     new text begin Subd. 6b. new text end new text begin Gaming machine area. new text end new text begin "Gaming machine area" means an area within new text end 5.31 new text begin ten feet of a gaming machine. new text end 6.1    Sec. 11. Minnesota Statutes 2010, section 349A.01, is amended by adding a 6.2subdivision to read: 6.3     new text begin Subd. 6c. new text end new text begin Gaming machine game. new text end new text begin "Gaming machine game" means a game new text end 6.4 new text begin operated by a gaming machine as authorized by the director. new text end 6.5    Sec. 12. Minnesota Statutes 2010, section 349A.01, is amended by adding a 6.6subdivision to read: 6.7     new text begin Subd. 6d. new text end new text begin Gaming machine play. new text end new text begin "Gaming machine play" means an electronic new text end 6.8 new text begin record that proves participation in a gaming machine game. new text end 6.9    Sec. 13. Minnesota Statutes 2010, section 349A.01, subdivision 10, is amended to read: 6.10    Subd. 10. Lottery procurement contract. "Lottery procurement contract" means a 6.11contract to provide lottery products, new text begin gaming machines, maintenance of gaming machines, new text end 6.12computer hardware and software used to monitor sales of lottery tickets new text begin and gaming new text end 6.13 new text begin machine plays new text end , and lottery tickets. "Lottery procurement contract" does not include 6.14a contract to provide an annuity or prize payment agreement or materials, supplies, 6.15equipment, or services common to the ordinary operation of a state agency. 6.16    Sec. 14. Minnesota Statutes 2010, section 349A.10, subdivision 3, is amended to read: 6.17    Subd. 3. Lottery operations. (a) The director shall establish a lottery operations 6.18account in the lottery fund. The director shall pay all costs of operating the lottery, 6.19including payroll costs or amounts transferred to the state treasury for payroll costs, but 6.20not including lottery prizes, from the lottery operating account. The director shall credit to 6.21the lottery operations account amounts sufficient to pay the operating costs of the lottery. 6.22(b) Except as provided in paragraph (e), the director may not credit in any fiscal 6.23year thereafter amounts to the lottery operations account which when totaled exceed 6.24nine percent of gross revenue to the lottery fund in that fiscal year. In computing total 6.25amounts credited to the lottery operations account under this paragraph the director shall 6.26disregard amounts transferred to or retained by lottery retailers as sales commissions or 6.27other compensation new text begin and amounts transferred or retained by a racetrack under a location new text end 6.28 new text begin contract under section 349A.17 new text end . 6.29(c) The director of the lottery may not expend after July 1, 1991, more than 2-3/4 6.30percent of gross revenues in a fiscal year for contracts for the preparation, publication, and 6.31placement of advertising. 6.32(d) Except as the director determines, the lottery is not subject to chapter 16A 6.33relating to budgeting, payroll, and the purchase of goods and services. 7.1(e) In addition to the amounts credited to the lottery operations account under 7.2paragraph (b), the director is authorized, if necessary, to meet the current obligations of 7.3the lottery and to credit up to 25 percent of an amount equal to the average annual amount 7.4which was authorized to be credited to the lottery operations account for the previous three 7.5fiscal years but was not needed to meet the obligations of the lottery. 7.6    Sec. 15. Minnesota Statutes 2010, section 349A.13, is amended to read: 7.7349A.13 RESTRICTIONS. 7.8Nothing in this chapter: 7.9(1) authorizes the director to conduct a lottery game or contest the winner or winners 7.10of which are determined by the result of a sporting event other than a horse race conducted 7.11under chapter 240; 7.12(2) authorizes the director to install or operate a lottery device operated by coin or 7.13currency which when operated determines the winner of a game new text begin , except as authorized new text end 7.14 new text begin under section 349A.17 new text end ; and 7.15(3) authorizes the director to sell pull-tabs as defined under section 349.12, 7.16subdivision 32 . 7.17    Sec. 16. new text begin [349A.17] GAMING MACHINES. new text end 7.18     new text begin Subdivision 1. new text end new text begin Location contract. new text end new text begin (a) The director may enter into a contract with new text end 7.19 new text begin a person to provide locations for gaming machines. Contracts entered into under this new text end 7.20 new text begin section are not subject to chapter 16C. The director may only enter a contract under this new text end 7.21 new text begin subdivision with a person who holds a class A license under chapter 240. The gaming new text end 7.22 new text begin machines may only be placed at the racetrack for which the class A license under chapter new text end 7.23 new text begin 240 was issued. Contracts entered into under this section are void if the racetrack: (1) has new text end 7.24 new text begin not hosted at least 75 days of live racing, authorized by the Minnesota Racing Commission, new text end 7.25 new text begin during the previous year, or (2) has not been approved, unless approval is pending, for at new text end 7.26 new text begin least 75 days of live racing during the present year. In the case of licensees authorized to new text end 7.27 new text begin conduct racing for only one breed of horse, the live racing requirement is 50 days. new text end 7.28 new text begin (b) The director may cancel, suspend, or refuse to renew the location contract new text end 7.29 new text begin if the person: new text end 7.30 new text begin (1) fails to account for proceeds from the gaming machines; new text end 7.31 new text begin (2) fails to remit funds to the director in accordance with the location contract; new text end 7.32 new text begin (3) violates a law, rule, or order of the director; new text end 7.33 new text begin (4) fails to comply with a material term of the location contract; or new text end 8.1 new text begin (5) has acted in a manner prejudicial to the public confidence in the integrity of the new text end 8.2 new text begin operation of the gaming machines. new text end 8.3 new text begin The cancellation, suspension, or refusal to renew the location contract is a contested new text end 8.4 new text begin case under sections 14.57 to 14.69. new text end 8.5 new text begin (c) Contracts entered into under this section must provide for compensation to the new text end 8.6 new text begin licensee in recognition of goods, services, and facilities provided expenses, risk factors, new text end 8.7 new text begin and losses. Compensation shall be in an amount equal to at least the following percentages new text end 8.8 new text begin of adjusted gross gaming machine revenue generated at the licensee's facility: new text end 8.9 new text begin (1) of the first $150,000,000 of annual adjusted gross gaming machine revenue, new text end 8.10 new text begin 60 percent; new text end 8.11 new text begin (2) of annual adjusted gross gaming machine revenue between $150,000,000 and new text end 8.12 new text begin $200,000,000, 55 percent; and new text end 8.13 new text begin (3) of annual adjusted gross gaming machine revenue in excess of $200,000,000, new text end 8.14 new text begin 45 percent. new text end 8.15 new text begin (d) A licensee must annually remit one percent of the compensation it receives new text end 8.16 new text begin pursuant to this section to the city, and one percent to the county in which the licensee new text end 8.17 new text begin conducts racing. new text end 8.18     new text begin Subd. 2. new text end new text begin Operation. new text end new text begin (a) All gaming machines that are placed at a racetrack under new text end 8.19 new text begin subdivision 1 must be operated and controlled by the director. new text end 8.20 new text begin (b) Gaming machines must be owned or leased by the director, however, the financial new text end 8.21 new text begin responsibility for all other activities related to the gaming facility including, but not new text end 8.22 new text begin limited to, advertising, marketing, facility expenses, staffing, security, and surveillance, new text end 8.23 new text begin shall be borne by the holder of the location contract. new text end 8.24 new text begin (c) Gaming machines must be maintained by the lottery, or by a vendor that is under new text end 8.25 new text begin the control and direction of the director. new text end 8.26 new text begin (d) The director must have a central communications system that monitors activities new text end 8.27 new text begin on each gaming machine. The central communications system must be located at a new text end 8.28 new text begin lottery office. new text end 8.29 new text begin (e) The director must approve and oversee the general security arrangements new text end 8.30 new text begin associated with and relating to the operation of the gaming machines and implement new text end 8.31 new text begin procedures as deemed appropriate. new text end 8.32 new text begin (f) Advertising and promotional material produced by the racetrack relating to new text end 8.33 new text begin gaming machines located at the facility must be approved by the director. new text end 8.34 new text begin (g) The director may implement such other controls as are deemed necessary for the new text end 8.35 new text begin operation of gaming machines under this section. new text end 9.1 new text begin (h) The holder of a location contract must make reasonable efforts to prevent new text end 9.2 new text begin drinking or possession of intoxicating beverages in gaming machine areas, and must new text end 9.3 new text begin not serve or allow consumption of intoxicating beverages in gaming machine areas. A new text end 9.4 new text begin violation of this section by location provider is subject to section 340.415. The holder new text end 9.5 new text begin of a location contract is, however, exempt from this provision, and may allow serving new text end 9.6 new text begin and possession of intoxicating beverages in the gaming machine area, if the premises is new text end 9.7 new text begin located within ten miles of a facility conducting class III gambling under section 3.9221 new text end 9.8 new text begin that allows alcohol consumption in its gaming machine area. new text end 9.9     new text begin Subd. 3. new text end new text begin Specifications. new text end new text begin Gaming machines must be capable of being linked new text end 9.10 new text begin electronically to a central communications system to provide auditing program information new text end 9.11 new text begin as required by the director. new text end 9.12     new text begin Subd. 4. new text end new text begin Games. new text end new text begin The director shall specify the games that may be placed on new text end 9.13 new text begin a gaming machine as provided in section 349A.04. Gaming machines may conduct new text end 9.14 new text begin pari-mutuel wagering and display horse races under specifications provided by the director. new text end 9.15     new text begin Subd. 5. new text end new text begin Examination of machines. new text end new text begin The director shall examine prototypes of new text end 9.16 new text begin gaming machines and require that the manufacturer of the machine pay the cost of the new text end 9.17 new text begin examination. The director may contract for the examination of gaming machines. new text end 9.18     new text begin Subd. 6. new text end new text begin Testing of machines. new text end new text begin The director may require working models of a new text end 9.19 new text begin gaming machine to be transported to the locations the director designates for testing, new text end 9.20 new text begin examination, and analysis. The manufacturer shall pay all costs for testing, examination, new text end 9.21 new text begin analysis, and transportation of the machine model. new text end 9.22     new text begin Subd. 7. new text end new text begin Prizes. new text end new text begin A person who plays a gaming machine agrees to be bound by the new text end 9.23 new text begin rules and game procedures applicable to that particular gaming machine game. The player new text end 9.24 new text begin acknowledges that the determination of whether the player has won a prize is subject to new text end 9.25 new text begin the rules and game procedures adopted by the director, claim procedures established by new text end 9.26 new text begin the director for the game, and any confidential or public validation tests established by new text end 9.27 new text begin the director for the game. A person under 18 years of age may not claim a prize from the new text end 9.28 new text begin operation of a gaming machine. A prize claimed from the play of a gaming machine game new text end 9.29 new text begin is not subject to section 349A.08, subdivision 8. new text end 9.30     new text begin Subd. 8. new text end new text begin Prohibitions. new text end new text begin (a) A person under the age of 18 years may not play a new text end 9.31 new text begin game on a gaming machine. new text end 9.32 new text begin (b) The director or any employee of the lottery, or a member of the immediate family new text end 9.33 new text begin residing in the same household, may not play a game on a gaming machine or receive a new text end 9.34 new text begin prize from the operation of a gaming machine. new text end 9.35 new text begin (c) No person shall consume or possess intoxicating beverages within a gaming new text end 9.36 new text begin machine area. new text end 10.1     new text begin Subd. 9. new text end new text begin Compulsive gambling notice. new text end new text begin The director shall prominently post, in the new text end 10.2 new text begin area where the gaming machines are located, the toll-free telephone number established new text end 10.3 new text begin by the commissioner of human services in connection with the compulsive gambling new text end 10.4 new text begin program established under section 245.98. The director and the location provider shall new text end 10.5 new text begin establish a responsible gambling plan in consultation with the National Council on new text end 10.6 new text begin Problem Gambling or the Minnesota affiliate. By January 15 of each year, the director new text end 10.7 new text begin shall submit a report to the legislature, of not more than five pages in length, setting forth new text end 10.8 new text begin the status of the responsible gambling plan. new text end 10.9     new text begin Subd. 10. new text end new text begin Local licenses. new text end new text begin Except as provided in subdivision 1, paragraph (d), new text end 10.10 new text begin no political subdivision may require a license to operate a gaming machine, restrict or new text end 10.11 new text begin regulate the placement of gaming machines, or impose a tax or fee on the business of new text end 10.12 new text begin operating gaming machines. new text end 10.13    Sec. 17. new text begin LOTTERY BUDGET. new text end 10.14 new text begin The director of the State Lottery shall submit a budget for the operation and control new text end 10.15 new text begin of gaming machines to the commissioner of management and budget. Notwithstanding new text end 10.16 new text begin Minnesota Statutes, section 349A.10, subdivision 6, the director of the State Lottery new text end 10.17 new text begin may expend amounts necessary to operate and control the gaming machines. Amounts new text end 10.18 new text begin expended by the director of the State Lottery for the operation and control of the gaming new text end 10.19 new text begin machines in fiscal years 2013 and 2014 are not subject to the maximum amount set in law new text end 10.20 new text begin for the operation of the lottery. new text end 10.21    Sec. 18. new text begin REPEALER. new text end 10.22 new text begin Minnesota Statutes 2010, section 240.30, subdivisions 3 and 8, new text end new text begin are repealed. new text end 10.23ARTICLE 2 10.24EDUCATION 10.25    Section 1. new text begin RACINO REVENUE. new text end 10.26     new text begin Subdivision 1. new text end new text begin Allocation. new text end new text begin Revenue transmitted to the commissioner under new text end 10.27 new text begin Minnesota Statutes, section 297A.651, must be deposited in a special account in the new text end 10.28 new text begin state treasury as provided in subdivision 2. new text end 10.29     new text begin Subd. 2. new text end new text begin Education. new text end new text begin A special account is established in the state treasury, consisting new text end 10.30 new text begin of money deposited under Minnesota Statutes, section 297A.651, and any interest earned new text end 10.31 new text begin thereon. Money in this account is appropriated for the following purposes in priority order: new text end 10.32 new text begin (1) to increase the aid payment schedule for school district aids and credits payments new text end 10.33 new text begin in section 127A.45, to not more than 90 percent rounded to the nearest tenth of a percent new text end 11.1 new text begin without exceeding the amount available and with any remaining funds deposited in the new text end 11.2 new text begin budget reserve; and new text end 11.3 new text begin (2) to restore all or a portion of the net aid reduction under section 127A.441, and to new text end 11.4 new text begin reduce the property tax revenue recognition shift under section 123B.75, subdivision 5, new text end 11.5 new text begin paragraph (a). new text end 11.6     new text begin Subd. 3. new text end new text begin Bonding. new text end new text begin When the purposes of subdivision 2 have been satisfied, money new text end 11.7 new text begin in the account is appropriated to pay, redeem, or defease bonds of the state sold and new text end 11.8 new text begin issued pursuant to Minnesota Statutes, sections 16A.631 to 16A.675, and the Minnesota new text end 11.9 new text begin Constitution, article XI, sections 4 to 7. new text end 11.10ARTICLE 3 11.11MISCELLANEOUS 11.12    Section 1. new text begin SEVERABILITY; SAVINGS. new text end 11.13 new text begin If any provision of this act is found to be invalid because it is in conflict with a new text end 11.14 new text begin provision of the Minnesota Constitution or the Constitution of the United States, or for any new text end 11.15 new text begin other reason, all other provisions of this act shall remain valid and any rights, remedies, new text end 11.16 new text begin and privileges that have been otherwise accrued by this act, shall remain in effect and may new text end 11.17 new text begin be proceeded with and concluded under this act. new text end 11.18    Sec. 2. new text begin EFFECTIVE DATE. new text end 11.19 new text begin This act is effective the day following final enactment. new text end