HF 1009

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to gambling; authorizing the State Lottery to
lease space for and operate a casino in the main
terminal of the Minneapolis-St. Paul International
Airport; appropriating money; amending Minnesota
Statutes 2004, sections 349A.01, by adding a
subdivision; 349A.10, subdivisions 2, 3, 5; 349A.11,
subdivision 1; 541.20; 541.21; 609.75, subdivision 3;
609.761, subdivision 2; proposing coding for new law
in Minnesota Statutes, chapter 349A.

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

Section 1.

Minnesota Statutes 2004, section 349A.01, is
amended by adding a subdivision to read:

new text begin Subd. 8a. new text end

new text begin Casino net proceeds. new text end

new text begin "Casino net proceeds"
means total revenues received by the director from the operation
of a casino under section 349A.17, less prizes and winnings paid
out and the capital and operating costs of the casino.
new text end

Sec. 2.

Minnesota Statutes 2004, section 349A.10,
subdivision 2, is amended to read:

Subd. 2.

Deposit in prize fund.

(a) The director shall
establish a lottery prize fund outside the state treasury. The
fund consists of all money deposited in it under this
subdivision and all interest earned thereon.

(b) The director shall deposit in the lottery prize fund,
from gross receipts from the sale of lottery tickets, an amount
sufficient to pay lottery prizes new text begin , other than prizes and winnings
from the casino under section 349A.17, new text end from the lottery prize
fund according to the following provisions:

(1) for games which require on-line terminal connections,
the prizes paid in any fiscal year must be at least 45 percent
of gross receipts from those games in that fiscal year;

(2) for games which do not require on-line terminal
connections, the prizes paid in any fiscal year must be at least
the following percentages of gross receipts from those games:

(i) 50 percent through fiscal year 1991;

(ii) 55 percent from July 1, 1991, to June 30, 1992; and

(iii) 60 percent thereafter.

Sec. 3.

Minnesota Statutes 2004, section 349A.10,
subdivision 3, is amended to read:

Subd. 3.

Lottery operations.

(a) The director shall
establish a lottery operations account in the lottery fund. The
director shall pay all costs of operating the lottery, including
payroll costs or amounts transferred to the state treasury for
payroll costs, but not including lottery prizes new text begin or costs of
operating the casino under this section new text end , from the lottery
operating account. The director shall credit to the lottery
operations account amounts sufficient to pay the operating costs
of the lottery new text begin other than casino operating costs new text end .

(b) Except as provided in paragraph (e), the director may
not credit in any fiscal year thereafter amounts to the lottery
operations account which when totaled exceed 15 percent of gross
revenue to the lottery fund in that fiscal year. In computing
total amounts credited to the lottery operations account under
this paragraph the director shall disregard amounts transferred
to or retained by lottery retailers as sales commissions or
other compensation.

(c) The director of the lottery may not expend after July
1, 1991, more than 2-3/4 percent of gross revenues in a fiscal
year for contracts for the preparation, publication, and
placement of advertising. new text begin This restriction does not apply to
advertising for the casino under section 349A.17.
new text end

(d) Except as the director determines, the lottery is not
subject to chapter 16A relating to budgeting, payroll, and the
purchase of goods and services.

(e) In addition to the amounts credited to the lottery
operations account under paragraph (b), the director is
authorized, if necessary, to meet the current obligations of the
lottery and to credit up to 25 percent of an amount equal to the
average annual amount which was authorized to be credited to the
lottery operations account for the previous three fiscal years
but was not needed to meet the obligations of the lottery.

new text begin (f) The director shall establish a casino operations
account in the lottery fund. The director shall credit to the
casino operations account amounts sufficient to pay the
operating costs of the casino, including prizes and winnings at
the casino. The director shall pay from the casino operations
fund all costs of operating the casino established under section
349A.17, including payroll costs or amounts transferred to the
state treasury for payroll costs and all amounts paid out as
prizes or winnings at the casino.
new text end

Sec. 4.

Minnesota Statutes 2004, section 349A.10,
subdivision 5, is amended to read:

Subd. 5.

Deposit of net proceeds.

Within 30 days after
the end of each month, the director shall deposit in the state
treasury the net proceeds of the lottery, which is the balance
in the lottery fund after transfers to the lottery prize fund
and credits to the lottery operations account new text begin and casino net
proceeds new text end . Of the net proceeds, 40 percent must be credited to
the Minnesota environment and natural resources trust fund and
the remainder must be credited to the general fund.

Sec. 5.

Minnesota Statutes 2004, section 349A.11,
subdivision 1, is amended to read:

Subdivision 1.

Lottery ticket; retailer.

The director,
an employee of the lottery, a member of the immediate family of
the director or employee residing in the same household may not:

(1) purchase a lottery ticket new text begin or participate in gambling at
the casino established under section 349A.17 new text end ; or

(2) have any personal pecuniary interest in any vendor
holding a lottery procurement contract, or in any lottery
retailer; or

(3) receive any gift, gratuity, or other thing of value,
excluding food or beverage, from any lottery vendor or lottery
retailer, or person applying to be a retailer or vendor, in
excess of $100 in any calendar year.

Sec. 6.

new text begin [349A.17] OPERATION OF CASINO.
new text end

new text begin Subdivision 1. new text end

new text begin Agreement. new text end

new text begin The director shall lease a
facility within the main terminal of the Minneapolis-St. Paul
International Airport for the purpose of operating a casino.
The Metropolitan Airports Commission shall not unreasonably
refuse to lease space in the main terminal for this purpose.
new text end

new text begin Subd. 2. new text end

new text begin Types of gambling. new text end

new text begin The director shall provide
for the types of gambling to be conducted at the casino and game
procedures subject to section 349A.04. Section 349A.13, clause
(2), does not apply to gambling conducted at the casino.
new text end

new text begin Subd. 3. new text end

new text begin Contracts. new text end

new text begin The director may contract with
private vendors for goods and services for the casino,
consistent with the constitutional requirement that the casino
be state-operated. Contracts under this section are subject to
section 349A.07.
new text end

new text begin Subd. 4. new text end

new text begin Personnel. new text end

new text begin (a) The director may as necessary
appoint personnel to operate the casino in accordance with
section 349A.02, subdivision 6, and with chapter 43A, except
that all employees will be in the unclassified service.
new text end

new text begin (b) No person or entity that holds a contract for the
supply of goods or services to the director may employ in any
capacity that relates directly to casino operations, or have as
a partner, officer, or director, any person who has been
convicted within the previous five years of a felony or gross
misdemeanor, any crime involving fraud or misrepresentation, or
any gambling-related offense. Failure by a contractor to comply
with this requirement is grounds for termination of the contract.
new text end

new text begin Subd. 5. new text end

new text begin Employee licenses. new text end

new text begin (a) For purposes of this
subdivision, "employee" means a person employed at the casino by
a person or entity holding a contract with the director to
provide goods or services to the casino.
new text end

new text begin (b) The director shall by rule prescribe the occupations
that the director determines requires licensing in order to
ensure the integrity of gambling at the casino, and the fee for
each licensing category. No person may be an employee at the
casino in an occupation covered by the director's rules unless
the person has a license issued by the director for that
occupation.
new text end

new text begin (c) An application for a license under this subdivision
must be accompanied by an affidavit of qualification that the
applicant has not (1) been convicted within the previous five
years of a felony or gross misdemeanor, a crime involving fraud
or misrepresentation, or a gambling-related offense, or (2) been
determined to have violated a rule of the director, the racing
commission, the gambling control board, or a gambling-related
regulatory body in another state.
new text end

new text begin (d) The director shall investigate each applicant for a
license under this subdivision to the extent the director deems
necessary and may request the assistance of and may reimburse
the division of alcohol and gambling enforcement in
investigating applicants. The director may by rule require that
an applicant be fingerprinted or furnish the applicant's
fingerprints. The director may charge an applicant an
investigation fee to cover the cost of the investigation and
shall from this fee reimburse the division of alcohol and
gambling enforcement for its share of the cost of the
investigation. The director may cooperate with national and
international organizations and agencies in conducting
investigations. The director may by rule provide for examining
the qualifications of an applicant for the license being applied
for. The director has access to all criminal history data
compiled by the Division of Alcohol and Gambling Enforcement on
applicants and licensees under this subdivision.
new text end

new text begin (e) If after compliance with this subdivision the director
determines that an applicant is not disqualified under paragraph
(c) and that licensing the applicant is consistent with the
public health, welfare, and safety, the director shall issue a
license to an applicant or renew a license already issued.
Licenses under this subdivision are valid for one year from the
date of issuance.
new text end

new text begin (f) The director may revoke or refuse to renew a license
under this subdivision for (1) conduct, including a violation of
a law or rule that the director determines adversely affects the
integrity of gambling at the casino, and (2) intentionally
making a false statement in a license application. The director
may suspend a license for a period of time the director
determines for a violation of law or rule.
new text end

new text begin (g) A license revocation or suspension under this
subdivision for more than 90 days is a contested case under
sections 14.57 to 14.69 of the Administrative Procedure Act and
is in addition to criminal penalties imposed for a violation of
law or rule. The director may summarily suspend a license for
more than 90 days prior to a contested case hearing where it is
necessary to ensure the integrity of gambling at the casino. A
contested case hearing must be held within 20 days of the
summary suspension and the administrative law judge's report
must be issued within 20 days from the close of the hearing
record. In all cases involving summary suspension the director
must issue its final decision within 30 days from receipt of the
report of the administrative law judge and subsequent exceptions
and arguments under section 14.61.
new text end

new text begin Subd. 6. new text end

new text begin Prizes. new text end

new text begin A person who plays a game at the casino
agrees to be bound by the game procedures applicable to that
game. The player acknowledges that the determination of
winnings is subject to the rules of the director, game
procedures and claim procedures established for that game, and
any confidential or public validation procedures established by
the director for that game.
new text end

new text begin Subd. 7. new text end

new text begin Restrictions. new text end

new text begin (a) No person under the age of 18
years may play any game at the casino or win a prize from any
game at the casino.
new text end

new text begin (b) No person may be admitted to the casino who does not
possess a valid ticket issued in the person's name by an airline
making regularly scheduled flights in and out of the airport,
for a flight with a departure time not more than 12 hours after
admission to the casino, or for a flight that has arrived not
more than 12 hours before admission to the casino.
new text end

Sec. 7.

Minnesota Statutes 2004, section 541.20, is
amended to read:

541.20 RECOVERY OF MONEY LOST.

Every person who, by playing at cards, dice, or other game,
or by betting on the hands or sides of such as are gambling,
shall lose to any person so playing or betting any sum of money
or any goods, and pays or delivers the same, or any part
thereof, to the winner, may sue for and recover such money by a
civil action, before any court of competent jurisdiction. For
purposes of this section, gambling shall not include pari-mutuel
wagering conducted under a license issued pursuant to chapter
240, purchase or sale of tickets in the state
lottery, new text begin participation in gambling at the casino authorized
under section 349A.17, new text end or gambling authorized under chapters 349
and 349A.

Sec. 8.

Minnesota Statutes 2004, section 541.21, is
amended to read:

541.21 COMMITMENTS FOR GAMBLING DEBT VOID.

Every note, bill, bond, mortgage, or other security or
conveyance in which the whole or any part of the consideration
shall be for any money or goods won by gambling or playing at
cards, dice, or any other game whatever, or by betting on the
sides or hands of any person gambling, or for reimbursing or
repaying any money knowingly lent or advanced at the time and
place of such gambling or betting, or lent and advanced for any
gambling or betting to any persons so gambling or betting, shall
be void and of no effect as between the parties to the same, and
as to all persons except such as hold or claim under them in
good faith, without notice of the illegality of the
consideration of such contract or conveyance. The provisions of
this section shall not apply to: (1) pari-mutuel wagering
conducted under a license issued pursuant to chapter 240; (2)
purchase of tickets in the state lottery new text begin and casino gambling
activities new text end under chapter 349A; (3) gaming activities conducted
pursuant to the Indian Gaming Regulatory Act, 25 U.S.C. 2701 et
seq.; or (4) lawful gambling activities permitted under chapter
349.

Sec. 9.

Minnesota Statutes 2004, section 609.75,
subdivision 3, is amended to read:

Subd. 3.

What are not bets.

The following are not bets:

(1) A contract to insure, indemnify, guarantee or otherwise
compensate another for a harm or loss sustained, even though the
loss depends upon chance.

(2) A contract for the purchase or sale at a future date of
securities or other commodities.

(3) Offers of purses, prizes or premiums to the actual
contestants in any bona fide contest for the determination of
skill, speed, strength, endurance, or quality or to the bona
fide owners of animals or other property entered in such a
contest.

(4) The game of bingo when conducted in compliance with
sections 349.11 to 349.23.

(5) A private social bet not part of or incidental to
organized, commercialized, or systematic gambling.

(6) The operation of equipment or the conduct of a raffle
under sections 349.11 to 349.22, by an organization licensed by
the Gambling Control Board or an organization exempt from
licensing under section 349.166.

(7) Pari-mutuel betting on horse racing when the betting is
conducted under chapter 240.

(8) The purchase and sale of state lottery tickets new text begin and
participation in the state-operated casino new text end under chapter 349A.

Sec. 10.

Minnesota Statutes 2004, section 609.761,
subdivision 2, is amended to read:

Subd. 2.

State lottery.

Sections 609.755 and 609.76 do
not prohibit the operation of the state lottery or the sale,
possession, or purchase of tickets for the state lottery new text begin or
casino gambling activities new text end under chapter 349A.

Sec. 11. new text begin APPROPRIATION.
new text end

new text begin $....... is appropriated from the general fund to the
director of the Minnesota State Lottery for capital,
acquisition, and initial operating costs of the casino
authorized under sections 1 to 10. The director must repay this
appropriation from the state lottery fund, with interest at the
average monthly rate on invested treasurer's cash, not later
than three months after the first date of operation of the
casino.
new text end

Sec. 12. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 11 are effective the day following final
enactment.
new text end