1.1                          A bill for an act 
  1.2             relating to gambling; providing for lottery gaming 
  1.3             machines; authorizing the director of the state 
  1.4             lottery to contract for the placement of gaming 
  1.5             machines at a gaming facility; imposing a tax on 
  1.6             gaming machine revenue and providing for the use of 
  1.7             gaming machine revenue; providing powers and duties to 
  1.8             the director; providing for blackjack and other card 
  1.9             games at a gaming facility; amending Minnesota 
  1.10            Statutes 2002, sections 299L.07, subdivisions 2, 2a; 
  1.11            340A.410, subdivision 5; 349A.01, subdivision 10, by 
  1.12            adding subdivisions; 349A.13; 541.20; 541.21; 609.75, 
  1.13            subdivision 3; 609.761, subdivision 2; Minnesota 
  1.14            Statutes 2003 Supplement, section 297A.94; proposing 
  1.15            coding for new law in Minnesota Statutes, chapters 
  1.16            297A; 349A. 
  1.17  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.18     Section 1.  [297A.652] [LOTTERY GAMING MACHINES; IN-LIEU 
  1.19  TAX.] 
  1.20     Adjusted gross revenue from the operation of gaming 
  1.21  machines authorized under section 349A.20 are exempt from the 
  1.22  tax imposed under section 297A.62.  The state lottery must on or 
  1.23  before the 20th day of each month transmit to the commissioner 
  1.24  an amount equal to the adjusted gross revenue from the operation 
  1.25  of gaming machines, as defined in section 349A.01, subdivision 
  1.26  8a, for the previous month multiplied by 20 percent.  The 
  1.27  commissioner shall deposit the money transmitted under this 
  1.28  section in the state treasury to be credited as provided in 
  1.29  section 297A.94.  
  1.30     Sec. 2.  Minnesota Statutes 2003 Supplement, section 
  1.31  297A.94, is amended to read: 
  2.1      297A.94 [DEPOSIT OF REVENUES.] 
  2.2      (a) Except as provided in this section, the commissioner 
  2.3   shall deposit the revenues, including interest and penalties, 
  2.4   derived from the taxes imposed by this chapter in the state 
  2.5   treasury and credit them to the general fund.  
  2.6      (b) The commissioner shall deposit taxes in the Minnesota 
  2.7   agricultural and economic account in the special revenue fund if:
  2.8      (1) the taxes are derived from sales and use of property 
  2.9   and services purchased for the construction and operation of an 
  2.10  agricultural resource project; and 
  2.11     (2) the purchase was made on or after the date on which a 
  2.12  conditional commitment was made for a loan guaranty for the 
  2.13  project under section 41A.04, subdivision 3. 
  2.14  The commissioner of finance shall certify to the commissioner 
  2.15  the date on which the project received the conditional 
  2.16  commitment.  The amount deposited in the loan guaranty account 
  2.17  must be reduced by any refunds and by the costs incurred by the 
  2.18  Department of Revenue to administer and enforce the assessment 
  2.19  and collection of the taxes.  
  2.20     (c) The commissioner shall deposit the revenues, including 
  2.21  interest and penalties, derived from the taxes imposed on sales 
  2.22  and purchases included in section 297A.61, subdivision 3, 
  2.23  paragraph (g), clauses (1) and (4), in the state treasury, and 
  2.24  credit them as follows: 
  2.25     (1) first to the general obligation special tax bond debt 
  2.26  service account in each fiscal year the amount required by 
  2.27  section 16A.661, subdivision 3, paragraph (b); and 
  2.28     (2) after the requirements of clause (1) have been met, the 
  2.29  balance to the general fund. 
  2.30     (d) The commissioner shall deposit the revenues, including 
  2.31  interest and penalties, collected under section 297A.64, 
  2.32  subdivision 5, in the state treasury and credit them to the 
  2.33  general fund.  By July 15 of each year the commissioner shall 
  2.34  transfer to the highway user tax distribution fund an amount 
  2.35  equal to the excess fees collected under section 297A.64, 
  2.36  subdivision 5, for the previous calendar year. 
  3.1      (e) For fiscal year 2001, 97 percent; for fiscal years 2002 
  3.2   and 2003, 87 percent; and for fiscal year 2004 and thereafter, 
  3.3   72.43 percent of the revenues, including interest and penalties, 
  3.4   transmitted to the commissioner under section 297A.65, must be 
  3.5   deposited by the commissioner in the state treasury as follows: 
  3.6      (1) 50 percent of the receipts must be deposited in the 
  3.7   heritage enhancement account in the game and fish fund, and may 
  3.8   be spent only on activities that improve, enhance, or protect 
  3.9   fish and wildlife resources, including conservation, 
  3.10  restoration, and enhancement of land, water, and other natural 
  3.11  resources of the state; 
  3.12     (2) 22.5 percent of the receipts must be deposited in the 
  3.13  natural resources fund, and may be spent only for state parks 
  3.14  and trails; 
  3.15     (3) 22.5 percent of the receipts must be deposited in the 
  3.16  natural resources fund, and may be spent only on metropolitan 
  3.17  park and trail grants; 
  3.18     (4) three percent of the receipts must be deposited in the 
  3.19  natural resources fund, and may be spent only on local trail 
  3.20  grants; and 
  3.21     (5) two percent of the receipts must be deposited in the 
  3.22  natural resources fund, and may be spent only for the Minnesota 
  3.23  Zoological Garden, the Como Park Zoo and Conservatory, and the 
  3.24  Duluth Zoo. 
  3.25     (f) The revenue dedicated under paragraph (e) may not be 
  3.26  used as a substitute for traditional sources of funding for the 
  3.27  purposes specified, but the dedicated revenue shall supplement 
  3.28  traditional sources of funding for those purposes.  Land 
  3.29  acquired with money deposited in the game and fish fund under 
  3.30  paragraph (e) must be open to public hunting and fishing during 
  3.31  the open season, except that in aquatic management areas or on 
  3.32  lands where angling easements have been acquired, fishing may be 
  3.33  prohibited during certain times of the year and hunting may be 
  3.34  prohibited.  At least 87 percent of the money deposited in the 
  3.35  game and fish fund for improvement, enhancement, or protection 
  3.36  of fish and wildlife resources under paragraph (e) must be 
  4.1   allocated for field operations. 
  4.2      (g) The commissioner must deposit revenues, including 
  4.3   interest and penalties, transmitted to the commissioner under 
  4.4   section 297A.652, into the gaming facility proceeds fund 
  4.5   established in section 297A.941. 
  4.6      Sec. 3.  [297A.941] [GAMING FACILITY PROCEEDS FUND.] 
  4.7      A gaming facilities proceeds fund is established in the 
  4.8   state treasury, consisting of money deposited in the fund under 
  4.9   section 297A.94, paragraph (g), and other money credited to the 
  4.10  fund by law.  Money in the fund is appropriated as follows: 
  4.11     (1) 1.50 percent of the receipts is annually appropriated 
  4.12  to the Department of Education for the Indian education program 
  4.13  and for schools in urban areas of the state.  For purposes of 
  4.14  this section, "urban areas" means the cities of Minneapolis, St. 
  4.15  Paul, Bemidji, and Duluth; 
  4.16     (2) 1.50 percent of the receipts is annually appropriated 
  4.17  to the Department of Human Services to be used for programs and 
  4.18  services for minorities and American Indians living in urban 
  4.19  areas of the state; 
  4.20     (3) 1.50 percent of the receipts is annually appropriated 
  4.21  to the Department of Employment and Economic Development for 
  4.22  grants to nonprofit 501(c)(3) corporations, which exist as of 
  4.23  February 1, 2003, and provide loans and business education to 
  4.24  minorities and American Indians living in urban areas of the 
  4.25  state, to make grants to fund loans to minorities and American 
  4.26  Indians; 
  4.27     (4) 1.50 percent of the receipts is annually appropriated 
  4.28  to the commissioner of the housing finance agency to provide 
  4.29  affordable housing for minorities and American Indians living in 
  4.30  urban areas of the state; 
  4.31     (5) 1.0 percent of the receipts is annually appropriated to 
  4.32  the commissioner of human services for the compulsive gambling 
  4.33  treatment program under section 245.98.  The commissioner shall 
  4.34  provide culturally sensitive approaches to gambling treatment of 
  4.35  minority and American Indian communities of the state; 
  4.36     (6) 3.0 percent of the receipts is annually transferred to, 
  5.1   to be divided equally between, the city and county where the 
  5.2   gaming facility is located; and 
  5.3      (7) the remaining 90 percent of the receipts shall be 
  5.4   transferred to the general fund.  
  5.5      Sec. 4.  Minnesota Statutes 2002, section 299L.07, 
  5.6   subdivision 2, is amended to read: 
  5.7      Subd. 2.  [EXCLUSIONS.] Notwithstanding subdivision 1, a 
  5.8   gambling device: 
  5.9      (1) may be sold by a person who is not licensed under this 
  5.10  section, if the person (i) is not engaged in the trade or 
  5.11  business of selling gambling devices, and (ii) does not sell 
  5.12  more than one gambling device in any calendar year; 
  5.13     (2) may be sold by the governing body of a federally 
  5.14  recognized Indian tribe described in subdivision 2a, paragraph 
  5.15  (b), clause (1), which is not licensed under this section, if 
  5.16  (i) the gambling device was operated by the Indian tribe, (ii) 
  5.17  the sale is to a distributor licensed under this section, and 
  5.18  (iii) the licensed distributor notifies the commissioner of the 
  5.19  purchase, in the same manner as is required when the licensed 
  5.20  distributor ships a gambling device into Minnesota; 
  5.21     (3) may be possessed by a person not licensed under this 
  5.22  section if the person holds a permit issued under section 
  5.23  299L.08; and 
  5.24     (4) may be possessed by a state agency, with the written 
  5.25  authorization of the director, for display or evaluation 
  5.26  purposes only and not for the conduct of gambling; and 
  5.27     (5) may be possessed by the state lottery as authorized 
  5.28  under chapter 349A. 
  5.29     Sec. 5.  Minnesota Statutes 2002, section 299L.07, 
  5.30  subdivision 2a, is amended to read: 
  5.31     Subd. 2a.  [RESTRICTIONS.] (a) A manufacturer licensed 
  5.32  under this section may sell, offer to sell, lease, or rent, in 
  5.33  whole or in part, a gambling device only to a distributor 
  5.34  licensed under this section or to the state lottery as 
  5.35  authorized under chapter 349A. 
  5.36     (b) A distributor licensed under this section may sell, 
  6.1   offer to sell, market, rent, lease, or otherwise provide, in 
  6.2   whole or in part, a gambling device only to: 
  6.3      (1) the governing body of a federally recognized Indian 
  6.4   tribe that is authorized to operate the gambling device under a 
  6.5   tribal state compact under the Indian Gaming Regulatory Act, 
  6.6   Public Law 100-497, and future amendments to it; 
  6.7      (2) a person for use in the person's dwelling for display 
  6.8   or amusement purposes in a manner that does not afford players 
  6.9   an opportunity to obtain anything of value; 
  6.10     (3) another distributor licensed under this section; or 
  6.11     (4) a person in another state who is authorized under the 
  6.12  laws of that state to possess the gambling device; or 
  6.13     (5) the state lottery as authorized under chapter 349A. 
  6.14     Sec. 6.  Minnesota Statutes 2002, section 340A.410, 
  6.15  subdivision 5, is amended to read: 
  6.16     Subd. 5.  [GAMBLING PROHIBITED.] (a) Except as otherwise 
  6.17  provided in this subdivision, no retail establishment licensed 
  6.18  to sell alcoholic beverages may keep, possess, or operate, or 
  6.19  permit the keeping, possession, or operation on the licensed 
  6.20  premises of dice or any gambling device as defined in section 
  6.21  349.30, or permit gambling therein.  
  6.22     (b) Gambling equipment may be kept or operated and raffles 
  6.23  conducted on licensed premises and adjoining rooms when the use 
  6.24  of the gambling equipment is authorized by (1) chapter 349, (2) 
  6.25  a tribal ordinance in conformity with the Indian Gaming 
  6.26  Regulatory Act, Public Law 100-497, or (3) a tribal-state 
  6.27  compact authorized under section 3.9221. 
  6.28     (c) Lottery tickets may be purchased and sold within the 
  6.29  licensed premises as authorized by the director of the lottery 
  6.30  under chapter 349A.  
  6.31     (d) Dice may be kept and used on licensed premises and 
  6.32  adjoining rooms as authorized by section 609.761, subdivision 4. 
  6.33     (e) Gambling devices may be operated on the premises of a 
  6.34  gaming facility as authorized by chapter 349A. 
  6.35     Sec. 7.  Minnesota Statutes 2002, section 349A.01, is 
  6.36  amended by adding a subdivision to read: 
  7.1      Subd. 8a.  [ADJUSTED GROSS GAMING MACHINE 
  7.2   REVENUE.] "Adjusted gross gaming machine revenue" means the sum 
  7.3   of all amounts wagered on gaming machines and gross receipts 
  7.4   derived from the sale of chips or tokens for play in the gaming 
  7.5   machines less payments to players.  For purposes of this 
  7.6   subdivision, "payment to players" means the redemption of chips 
  7.7   or tokens, and payment of prizes, winnings, or any other thing 
  7.8   of value to players. 
  7.9      Sec. 8.  Minnesota Statutes 2002, section 349A.01, 
  7.10  subdivision 10, is amended to read: 
  7.11     Subd. 10.  [LOTTERY PROCUREMENT CONTRACT.] "Lottery 
  7.12  procurement contract" means a contract to provide lottery 
  7.13  products, gaming machines, maintenance of gaming machines, 
  7.14  computer hardware and software used to monitor sales of lottery 
  7.15  tickets and gaming machine plays, and lottery tickets.  "Lottery 
  7.16  procurement contract" does not include a contract to provide an 
  7.17  annuity or prize payment agreement or materials, supplies, 
  7.18  equipment, or services common to the ordinary operation of a 
  7.19  state agency. 
  7.20     Sec. 9.  Minnesota Statutes 2002, section 349A.01, is 
  7.21  amended by adding a subdivision to read: 
  7.22     Subd. 14.  [GAMING FACILITY.] "Gaming facility" means the 
  7.23  site selected for the location of gaming machines pursuant to a 
  7.24  location contract under section 349A.20. 
  7.25     Sec. 10.  Minnesota Statutes 2002, section 349A.01, is 
  7.26  amended by adding a subdivision to read: 
  7.27     Subd. 15.  [GAMING MACHINE.] "Gaming machine" means any 
  7.28  machine in which a coin, token, currency, or other currency 
  7.29  equivalent is deposited to play a game that uses a video display 
  7.30  and microprocessors or an electromechanical device with a 
  7.31  spinning reel. 
  7.32     Sec. 11.  Minnesota Statutes 2002, section 349A.01, is 
  7.33  amended by adding a subdivision to read: 
  7.34     Subd. 16.  [GAMING MACHINE GAME.] "Gaming machine game" 
  7.35  means a game operated by a gaming machine as authorized by the 
  7.36  director with the advice and consent of the advisory board. 
  8.1      Sec. 12.  Minnesota Statutes 2002, section 349A.01, is 
  8.2   amended by adding a subdivision to read: 
  8.3      Subd. 17.  [GAMING MACHINE PLAY.] "Gaming machine play" 
  8.4   means an electronic record that proves participation in a gaming 
  8.5   machine game. 
  8.6      Sec. 13.  Minnesota Statutes 2002, section 349A.13, is 
  8.7   amended to read: 
  8.8      349A.13 [RESTRICTIONS.] 
  8.9      Nothing in this chapter: 
  8.10     (1) authorizes the director to conduct a lottery game or 
  8.11  contest the winner or winners of which are determined by the 
  8.12  result of a sporting event other than a horse race conducted 
  8.13  under chapter 240; 
  8.14     (2) authorizes the director to install or operate a lottery 
  8.15  device operated by coin or currency which when operated 
  8.16  determines the winner of a game except as authorized under 
  8.17  section 349A.20; and 
  8.18     (3) authorizes the director to sell pull-tabs as defined 
  8.19  under section 349.12, subdivision 32. 
  8.20     Sec. 14.  [349A.20] [GAMING MACHINES.] 
  8.21     Subdivision 1.  [LOCATION CONTRACT.] (a) The director may 
  8.22  enter into a contract with a person to provide locations for 
  8.23  gaming machines at one site located in the metropolitan area as 
  8.24  defined in section 473.121, subdivision 2, that is determined by 
  8.25  the director with the advice and consent of the advisory board 
  8.26  to maximize revenues from the gaming facility operations.  If a 
  8.27  home rule charter or statutory city notifies the director by 
  8.28  September 1, 2004, that it does not consent to being a site for 
  8.29  gaming machines, the director shall not consider that city as a 
  8.30  site for the facility.  For purposes of this section, a "person" 
  8.31  means a corporate entity formed by one or more Minnesota tribal 
  8.32  governments that have adopted a resolution of participation by 
  8.33  April 4, 2003, for the purposes of entering into a location 
  8.34  contract under this section.  Before selecting a site for the 
  8.35  facility the director shall contract with an independent entity 
  8.36  to perform an analysis of the economic effects of the facility 
  9.1   on existing tribal gaming facilities located in or within 100 
  9.2   miles of the metropolitan area.  For purposes of this chapter, 
  9.3   "advisory board" means a body comprised of representation by 
  9.4   individuals appointed by the person and representatives 
  9.5   appointed by the governor to give advice and consent to the 
  9.6   director. 
  9.7      (b) Contracts entered into under this section are not 
  9.8   subject to chapter 16C and shall have no legal effect on the 
  9.9   existing tribal-state gaming compacts.  The director may only 
  9.10  enter into a contract under this section with a corporate entity 
  9.11  formed by one or more Minnesota tribal governments for the 
  9.12  purpose of entering into a location contract under this 
  9.13  section.  Contracts under this section shall run for not less 
  9.14  than 20 years and shall be negotiable and renewable every 15 
  9.15  years thereafter.  
  9.16     (c) The director, with the advice and consent of the 
  9.17  advisory board shall implement and enforce standards of conduct 
  9.18  for employees of the gaming facility which will ensure the 
  9.19  integrity of the operations. 
  9.20     (d) The director, with the advice and consent of the 
  9.21  advisory board, may only choose one site for the operation of a 
  9.22  gaming facility under this section.  Contracts entered into 
  9.23  under this section shall provide for liquidated damages to 
  9.24  recover investment in the event that the state expands new forms 
  9.25  of gambling or revokes the form of gambling authorized under 
  9.26  this section.  For purposes of this paragraph, "liquidated 
  9.27  damages" are limited to the unpaid balance of any amount owed by 
  9.28  the person on debt incurred by the person for the construction 
  9.29  or acquisition of the facility and other debt incurred. 
  9.30     Subd. 2.  [GAMING FACILITY; REVENUE SHARING.] The gaming 
  9.31  machines may only be placed at a gaming facility that is owned 
  9.32  or leased by the person.  The costs of leasing, purchasing, 
  9.33  constructing, operating, and maintaining equipment and 
  9.34  facilities other than gaming machines for the operation of the 
  9.35  gaming facility shall be borne by the person.  Contracts entered 
  9.36  into under this section must provide for the sharing of revenue 
 10.1   generated by the gaming machines in an amount equal to at least 
 10.2   65 percent of adjusted gross gaming machine revenue.  The share 
 10.3   of revenue due to the person must be apportioned equally between 
 10.4   tribal governments signing the agreement. 
 10.5      Subd. 3.  [OPERATION.] (a) All gaming machines that are 
 10.6   placed at a gaming facility pursuant to subdivision 1 must be 
 10.7   operated and controlled by the director. 
 10.8      (b) Gaming machines must be owned or leased by the director.
 10.9      (c) Gaming machines must be maintained by the lottery or by 
 10.10  a vendor that is under the control and direction of the director.
 10.11     (d) The director must have a central communications system 
 10.12  that monitors activities on each gaming machine.  The central 
 10.13  communications system must be located at a lottery office. 
 10.14     (e) The director must supervise the counting of money taken 
 10.15  from gaming machines. 
 10.16     (f) The director must supervise the general security 
 10.17  arrangements associated with and relating to the operation of 
 10.18  the gaming machines, and implement procedures as deemed 
 10.19  appropriate. 
 10.20     (g) Advertising and promotional material produced by the 
 10.21  gaming facility relating to gaming machines located at its 
 10.22  facility must be approved by the director but approval of 
 10.23  material must not be unreasonably withheld. 
 10.24     (h) The director may implement such other controls as are 
 10.25  deemed necessary for the operation of gaming machines pursuant 
 10.26  to this section. 
 10.27     Subd. 4.  [GAMING FACILITY CONTRACTS; EMPLOYMENT.] (a) In 
 10.28  the construction of the gaming facility, and the subsequent 
 10.29  repair and maintenance of the facility, the person shall make 
 10.30  good faith efforts to contract with minority-owned and American 
 10.31  Indian businesses.  General contractors awarded contracts under 
 10.32  this section shall be required to use minority-owned and 
 10.33  American Indian businesses when subcontracting for labor, skill, 
 10.34  material, or machinery. 
 10.35     (b) The person shall make good faith efforts to use 
 10.36  minority-owned and American Indian businesses when contracting 
 11.1   with private vendors for goods and services for the gaming 
 11.2   facility.  Best efforts shall be made by the person to have 55 
 11.3   percent of the vendors providing goods and services be 
 11.4   minority-owned and American Indian businesses. 
 11.5      (c) Best efforts shall be made by the person to have 55 
 11.6   percent of entry level, middle management, and upper management 
 11.7   staffed by minority and American Indian employees.  
 11.8      (d) The director, with the advice and consent of the 
 11.9   advisory board, shall conduct a background investigation and 
 11.10  provide for the licensing of employees at the gaming facility 
 11.11  for occupations that the director determines require licensing 
 11.12  in order to ensure the public health, welfare, or safety, or 
 11.13  integrity of the facility.  The director, with the advice and 
 11.14  consent of the advisory board, shall provide standards for the 
 11.15  qualification and disqualification of licensed employees. 
 11.16     Subd. 5.  [SPECIFICATIONS.] Gaming machines must: 
 11.17     (1) maintain on nonresettable meters a permanent record, 
 11.18  capable of being printed out, of all transactions by the machine 
 11.19  and all entries into the machine; and 
 11.20     (2) be capable of being linked electronically to a central 
 11.21  communication system to provide auditing program information as 
 11.22  required by the director. 
 11.23     Subd. 6.  [GAMES.] The director shall specify the games 
 11.24  that may be placed on a gaming machine as set forth under 
 11.25  section 349A.04 with the advice and consent of the person.  
 11.26     Subd. 7.  [EXAMINATION OF MACHINES.] The director shall 
 11.27  examine prototypes of gaming machines and require that the 
 11.28  manufacturer of the machine pay the cost of the examination.  
 11.29  The director may contract for the examination of gaming machines.
 11.30     Subd. 8.  [TESTING OF MACHINES.] The director may require 
 11.31  working models of a gaming machine to be transported to the 
 11.32  locations the director designates for testing, examination, and 
 11.33  analysis.  The manufacturer shall pay all costs for testing, 
 11.34  examination, analysis, and transportation of the machine model. 
 11.35     Subd. 9.  [PRIZES.] An individual who plays a gaming 
 11.36  machine agrees to be bound by the rules and game procedures 
 12.1   applicable to that particular gaming machine game.  The player 
 12.2   acknowledges that the determination of whether the player has 
 12.3   won a prize is subject to the rules and game procedures adopted 
 12.4   by the director, claim procedures established by the director 
 12.5   for the game, and any confidential or public validation tests 
 12.6   established by the director for that game.  A prize claimed from 
 12.7   the play of a gaming machine game is subject to section 349A.08, 
 12.8   subdivision 8, only if the prize is paid by the director by 
 12.9   check. 
 12.10     Subd. 10.  [PROHIBITIONS.] (a) An individual under the age 
 12.11  of 18 years may not play a game on a gaming machine or claim a 
 12.12  prize from the operation of a gaming machine. 
 12.13     (b) The director or any employee of the lottery, or a 
 12.14  member of their immediate family residing in the same household, 
 12.15  may not play a game on a gaming machine or receive a prize from 
 12.16  the operation of a gaming machine. 
 12.17     Subd. 11.  [COMPULSIVE GAMBLING NOTICE.] The director shall 
 12.18  prominently post, in the area where the gaming machines are 
 12.19  located, the toll-free telephone number established by the 
 12.20  commissioner of human services in connection with the compulsive 
 12.21  gambling program established under section 245.98.  The director 
 12.22  and the location provider shall establish a proactive plan to 
 12.23  identify problem gamblers and take appropriate action. 
 12.24     Subd. 12.  [LOCAL LICENSES.] Except as provided in 
 12.25  subdivision 2, no political subdivision may require a license to 
 12.26  operate a gaming machine, restrict or regulate the placement of 
 12.27  gaming machines, or impose a tax or fee on the business of 
 12.28  operating gaming machines. 
 12.29     Subd. 13.  [SALE OF INTOXICATING LIQUOR.] The commissioner 
 12.30  of public safety shall issue to the person an on-sale license 
 12.31  for the sale of intoxicating liquor at the gaming facility.  The 
 12.32  annual fee for the license issued pursuant to this subdivision 
 12.33  shall be set by the commissioner of public safety at an amount 
 12.34  comparable to the fee charged by municipalities in the 
 12.35  surrounding area for a similar license.  All provisions of 
 12.36  chapter 340A shall apply to the sale of intoxicating liquor at 
 13.1   the gaming facility except that the licensed premises need not 
 13.2   be compact and contiguous if the licensed premises are limited 
 13.3   to the interior and grounds of the facility.  
 13.4      Sec. 15.  [349A.30] [OTHER GAMES.] 
 13.5      A person that has a location contract with the director 
 13.6   under section 349A.20 may conduct blackjack and other card games 
 13.7   offered at a class A licensed racetrack or that Indian gaming 
 13.8   casinos within this state currently are authorized by compact or 
 13.9   law to conduct as authorized by the director with the advice and 
 13.10  consent of the advisory board.  The director of the alcohol and 
 13.11  gambling enforcement division may adopt game procedures or take 
 13.12  other actions necessary to regulate the conduct of the card 
 13.13  games. 
 13.14     Sec. 16.  Minnesota Statutes 2002, section 541.20, is 
 13.15  amended to read: 
 13.16     541.20 [RECOVERY OF MONEY LOST.] 
 13.17     Every person who, by playing at cards, dice, or other game, 
 13.18  or by betting on the hands or sides of such as are gambling, 
 13.19  shall lose to any person so playing or betting any sum of money 
 13.20  or any goods, and pays or delivers the same, or any part 
 13.21  thereof, to the winner, may sue for and recover such money by a 
 13.22  civil action, before any court of competent jurisdiction.  For 
 13.23  purposes of this section, gambling shall not include pari-mutuel 
 13.24  wagering conducted under a license issued pursuant to chapter 
 13.25  240, purchase or sale of tickets in the state lottery, purchase 
 13.26  of gaming machine plays as authorized under chapter 349A, or 
 13.27  gambling authorized under chapters 349 and 349A. 
 13.28     Sec. 17.  Minnesota Statutes 2002, section 541.21, is 
 13.29  amended to read: 
 13.30     541.21 [COMMITMENTS FOR GAMBLING DEBT VOID.] 
 13.31     Every note, bill, bond, mortgage, or other security or 
 13.32  conveyance in which the whole or any part of the consideration 
 13.33  shall be for any money or goods won by gambling or playing at 
 13.34  cards, dice, or any other game whatever, or by betting on the 
 13.35  sides or hands of any person gambling, or for reimbursing or 
 13.36  repaying any money knowingly lent or advanced at the time and 
 14.1   place of such gambling or betting, or lent and advanced for any 
 14.2   gambling or betting to any persons so gambling or betting, shall 
 14.3   be void and of no effect as between the parties to the same, and 
 14.4   as to all persons except such as hold or claim under them in 
 14.5   good faith, without notice of the illegality of the 
 14.6   consideration of such contract or conveyance.  The provisions of 
 14.7   this section shall not apply to:  (1) pari-mutuel wagering 
 14.8   conducted under a license issued pursuant to chapter 240; (2) 
 14.9   purchase of tickets in the state lottery or other wagering 
 14.10  authorized under chapter 349A; (3) gaming activities conducted 
 14.11  pursuant to the Indian Gaming Regulatory Act, 25 U.S.C. 2701 et 
 14.12  seq.; or (4) lawful gambling activities permitted under chapter 
 14.13  349. 
 14.14     Sec. 18.  Minnesota Statutes 2002, section 609.75, 
 14.15  subdivision 3, is amended to read: 
 14.16     Subd. 3.  [WHAT ARE NOT BETS.] The following are not bets: 
 14.17     (1) A contract to insure, indemnify, guarantee or otherwise 
 14.18  compensate another for a harm or loss sustained, even though the 
 14.19  loss depends upon chance. 
 14.20     (2) A contract for the purchase or sale at a future date of 
 14.21  securities or other commodities. 
 14.22     (3) Offers of purses, prizes or premiums to the actual 
 14.23  contestants in any bona fide contest for the determination of 
 14.24  skill, speed, strength, endurance, or quality or to the bona 
 14.25  fide owners of animals or other property entered in such a 
 14.26  contest. 
 14.27     (4) The game of bingo when conducted in compliance with 
 14.28  sections 349.11 to 349.23. 
 14.29     (5) A private social bet not part of or incidental to 
 14.30  organized, commercialized, or systematic gambling. 
 14.31     (6) The operation of equipment or the conduct of a raffle 
 14.32  under sections 349.11 to 349.22, by an organization licensed by 
 14.33  the Gambling Control Board or an organization exempt from 
 14.34  licensing under section 349.166.  
 14.35     (7) Pari-mutuel betting on horse racing when the betting is 
 14.36  conducted under chapter 240.  
 15.1      (8) The purchase and sale of state lottery tickets and 
 15.2   plays on a gaming machine under chapter 349A.  
 15.3      Sec. 19.  Minnesota Statutes 2002, section 609.761, 
 15.4   subdivision 2, is amended to read: 
 15.5      Subd. 2.  [STATE LOTTERY.] Sections 609.755 and 609.76 do 
 15.6   not prohibit the operation of the state lottery or the sale, 
 15.7   possession, or purchase of tickets for the state lottery under 
 15.8   chapter 349A, or the manufacture, possession, sale, or operation 
 15.9   of a gaming machine under chapter 349A. 
 15.10     Sec. 20.  [EFFECTIVE DATE.] 
 15.11     This act is effective the day following final enactment.