HF 1036

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to gambling; authorizing the state lottery to 
  1.3             construct or acquire and operate a casino in the 
  1.4             metropolitan area; establishing a 21st century 
  1.5             economic development fund; appropriating money; 
  1.6             amending Minnesota Statutes 2000, sections 144.415; 
  1.7             297A.65; 297A.94; 349A.01, by adding a subdivision; 
  1.8             349A.07, by adding a subdivision; 349A.10, 
  1.9             subdivisions 2, 3, and 5; 349A.11, subdivision 1; 
  1.10            541.20; 541.21; 609.75, subdivision 3; and 609.761, 
  1.11            subdivision 2; proposing coding for new law in 
  1.12            Minnesota Statutes, chapter 349A. 
  1.13  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.14     Section 1.  Minnesota Statutes 2000, section 144.415, is 
  1.15  amended to read: 
  1.16     144.415 [DESIGNATION OF SMOKING AREAS.] 
  1.17     Smoking areas may be designated by proprietors or other 
  1.18  persons in charge of public places, except in places in which 
  1.19  smoking is prohibited by the fire marshal or by other law, 
  1.20  ordinance or rule. 
  1.21     Where smoking areas are designated, existing physical 
  1.22  barriers and ventilation systems shall be used to minimize the 
  1.23  toxic effect of smoke in adjacent nonsmoking areas.  In the case 
  1.24  of public places consisting of a single room, the provisions of 
  1.25  this law shall be considered met if one side of the room is 
  1.26  reserved and posted as a no smoking area.  No public place other 
  1.27  than a bar or the casino established under section 349A.17 shall 
  1.28  be designated as a smoking area in its entirety.  If a bar or 
  1.29  casino established under section 349A.17 is designated as a 
  2.1   smoking area in its entirety, this designation shall be posted 
  2.2   conspicuously on all entrances normally used by the public.  
  2.3      Sec. 2.  Minnesota Statutes 2000, section 297A.65, is 
  2.4   amended to read: 
  2.5      297A.65 [LOTTERY TICKETS; IN-LIEU TAX.] 
  2.6      (a) Sales of state lottery tickets are exempt from the tax 
  2.7   imposed under section 297A.62.  
  2.8      (b) The state lottery must on or before the 20th day of 
  2.9   each month transmit to the commissioner of revenue an amount 
  2.10  equal to the gross receipts from the sale of lottery tickets for 
  2.11  the previous month multiplied by the tax rate under section 
  2.12  297A.62, subdivision 1.  The resulting payment is in lieu of the 
  2.13  sales tax that otherwise would be imposed by this chapter.  The 
  2.14  commissioner shall deposit the money transmitted as provided by 
  2.15  section 297A.94 and the money must be treated as other proceeds 
  2.16  of the sales tax.  For purposes of this section, "gross 
  2.17  receipts" means the proceeds of the sale of tickets before 
  2.18  deduction of a commission or other compensation paid to the 
  2.19  vendor or retailer for selling tickets. 
  2.20     (c) The state lottery must on or before the 20th day of 
  2.21  each month transmit to the commissioner of revenue an amount 
  2.22  equal to the gross receipts from the operation of the casino 
  2.23  under section 349A.17 for the previous month multiplied by the 
  2.24  tax rate under section 297A.62, subdivision 1.  The resulting 
  2.25  payment is in lieu of the sales tax that otherwise would be 
  2.26  imposed by this chapter.  The commissioner shall deposit the 
  2.27  money transmitted as provided by section 297A.94 and the money 
  2.28  must be treated as other proceeds of the sales tax.  For 
  2.29  purposes of this paragraph, "gross receipts" means total amounts 
  2.30  wagered at the casino and gross receipts from the sale of chips 
  2.31  or tokens for play at the casino, and other revenues from the 
  2.32  casino, less amounts paid out as prizes or winnings or to redeem 
  2.33  chips or tokens.  
  2.34     Sec. 3.  Minnesota Statutes 2000, section 297A.94, is 
  2.35  amended to read: 
  2.36     297A.94 [DEPOSIT OF REVENUES.] 
  3.1      (a) Except as provided in this section, the commissioner 
  3.2   shall deposit the revenues, including interest and penalties, 
  3.3   derived from the taxes imposed by this chapter in the state 
  3.4   treasury and credit them to the general fund.  
  3.5      (b) The commissioner shall deposit taxes in the Minnesota 
  3.6   agricultural and economic account in the special revenue fund if:
  3.7      (1) the taxes are derived from sales and use of property 
  3.8   and services purchased for the construction and operation of an 
  3.9   agricultural resource project; and 
  3.10     (2) the purchase was made on or after the date on which a 
  3.11  conditional commitment was made for a loan guaranty for the 
  3.12  project under section 41A.04, subdivision 3. 
  3.13  The commissioner of finance shall certify to the commissioner 
  3.14  the date on which the project received the conditional 
  3.15  commitment.  The amount deposited in the loan guaranty account 
  3.16  must be reduced by any refunds and by the costs incurred by the 
  3.17  department of revenue to administer and enforce the assessment 
  3.18  and collection of the taxes.  
  3.19     (c) The commissioner shall deposit the revenues, including 
  3.20  interest and penalties, derived from the taxes imposed on sales 
  3.21  and purchases included in section 297A.61, subdivision 16, 
  3.22  paragraphs (b) and (f), in the state treasury, and credit them 
  3.23  as follows: 
  3.24     (1) first to the general obligation special tax bond debt 
  3.25  service account in each fiscal year the amount required by 
  3.26  section 16A.661, subdivision 3, paragraph (b); and 
  3.27     (2) after the requirements of clause (1) have been met, the 
  3.28  balance to the general fund. 
  3.29     (d) The commissioner shall deposit the revenues, including 
  3.30  interest and penalties, collected under section 297A.64, 
  3.31  subdivision 5, in the state treasury and credit them to the 
  3.32  general fund.  By July 15 of each year the commissioner shall 
  3.33  transfer to the highway user tax distribution fund an amount 
  3.34  equal to the excess fees collected under section 297A.64, 
  3.35  subdivision 5, for the previous calendar year. 
  3.36     (e) For fiscal year 2001, 97 percent, and for fiscal year 
  4.1   2002 and thereafter, 87 percent of the revenues, including 
  4.2   interest and penalties, transmitted to the commissioner under 
  4.3   section 297A.65, paragraph (b), must be deposited by the 
  4.4   commissioner in the state treasury as follows: 
  4.5      (1) 50 percent of the receipts must be deposited in the 
  4.6   heritage enhancement account in the game and fish fund, and may 
  4.7   be spent only on activities that improve, enhance, or protect 
  4.8   fish and wildlife resources, including conservation, 
  4.9   restoration, and enhancement of land, water, and other natural 
  4.10  resources of the state; 
  4.11     (2) 22.5 percent of the receipts must be deposited in the 
  4.12  natural resources fund, and may be spent only for state parks 
  4.13  and trails; 
  4.14     (3) 22.5 percent of the receipts must be deposited in the 
  4.15  natural resources fund, and may be spent only on metropolitan 
  4.16  park and trail grants; 
  4.17     (4) three percent of the receipts must be deposited in the 
  4.18  natural resources fund, and may be spent only on local trail 
  4.19  grants; and 
  4.20     (5) two percent of the receipts must be deposited in the 
  4.21  natural resources fund, and may be spent only for the Minnesota 
  4.22  zoological garden, the Como park zoo and conservatory, and the 
  4.23  Duluth zoo. 
  4.24     (f) The revenue dedicated under paragraph (e) may not be 
  4.25  used as a substitute for traditional sources of funding for the 
  4.26  purposes specified, but the dedicated revenue shall supplement 
  4.27  traditional sources of funding for those purposes.  Land 
  4.28  acquired with money deposited in the game and fish fund under 
  4.29  paragraph (e) must be open to public hunting and fishing during 
  4.30  the open season.  At least 87 percent of the money deposited in 
  4.31  the game and fish fund for improvement, enhancement, or 
  4.32  protection of fish and wildlife resources under paragraph (e) 
  4.33  must be allocated for field operations. 
  4.34     Sec. 4.  Minnesota Statutes 2000, section 349A.01, is 
  4.35  amended by adding a subdivision to read: 
  4.36     Subd. 8a.  [CASINO NET PROCEEDS.] "Casino net proceeds" 
  5.1   means total revenues received by the director from the operation 
  5.2   of a casino under section 349A.17, less prizes and winnings paid 
  5.3   out and the capital and operating costs of the casino. 
  5.4      Sec. 5.  Minnesota Statutes 2000, section 349A.07, is 
  5.5   amended by adding a subdivision to read: 
  5.6      Subd. 8.  [APPLICABILITY TO CASINO CONTRACTS.] This section 
  5.7   applies to contracts for goods and services provided to the 
  5.8   casino operated by the director under section 349A.17.  
  5.9      Sec. 6.  Minnesota Statutes 2000, section 349A.10, 
  5.10  subdivision 2, is amended to read: 
  5.11     Subd. 2.  [DEPOSIT IN PRIZE FUND.] (a) The director shall 
  5.12  establish a lottery prize fund outside the state treasury.  The 
  5.13  fund consists of all money deposited in it under this 
  5.14  subdivision and all interest earned thereon.  
  5.15     (b) The director shall deposit in the lottery prize fund, 
  5.16  from gross receipts from the sale of lottery tickets, an amount 
  5.17  sufficient to pay lottery prizes, other than prizes and winnings 
  5.18  from the casino under section 349A.17, from the lottery prize 
  5.19  fund according to the following provisions: 
  5.20     (1) for games which require on-line terminal connections, 
  5.21  the prizes paid in any fiscal year must be at least 45 percent 
  5.22  of gross receipts from those games in that fiscal year; 
  5.23     (2) for games which do not require on-line terminal 
  5.24  connections, the prizes paid in any fiscal year must be at least 
  5.25  the following percentages of gross receipts from those games:  
  5.26     (i) 50 percent through fiscal year 1991; 
  5.27     (ii) 55 percent from July 1, 1991, to June 30, 1992; and 
  5.28     (iii) 60 percent thereafter.  
  5.29     Sec. 7.  Minnesota Statutes 2000, section 349A.10, 
  5.30  subdivision 3, is amended to read: 
  5.31     Subd. 3.  [LOTTERY OPERATIONS.] (a) The director shall 
  5.32  establish a lottery operations account in the lottery fund.  The 
  5.33  director shall pay all costs of operating the lottery, including 
  5.34  payroll costs or amounts transferred to the state treasury for 
  5.35  payroll costs, but not including lottery prizes or costs of 
  5.36  operating the casino under section 349A.17, from the lottery 
  6.1   operating account.  The director shall credit to the lottery 
  6.2   operations account amounts sufficient to pay the operating costs 
  6.3   of the lottery other than casino operating costs. 
  6.4      (b) Except as provided in paragraph (e), the director may 
  6.5   not credit in any fiscal year thereafter amounts to the lottery 
  6.6   operations account which when totaled exceed 15 percent of gross 
  6.7   revenue to the lottery fund in that fiscal year.  In computing 
  6.8   total amounts credited to the lottery operations account under 
  6.9   this paragraph the director shall disregard amounts transferred 
  6.10  to or retained by lottery retailers as sales commissions or 
  6.11  other compensation. 
  6.12     (c) The director of the lottery may not expend after July 
  6.13  1, 1991, more than 2-3/4 percent of gross revenues in a fiscal 
  6.14  year for contracts for the preparation, publication, and 
  6.15  placement of advertising.  This restriction does not apply to 
  6.16  marketing or advertising for the casino under section 349A.17.  
  6.17     (d) Except as the director determines, the lottery is not 
  6.18  subject to chapter 16A relating to budgeting, payroll, and the 
  6.19  purchase of goods and services. 
  6.20     (e) In addition to the amounts credited to the lottery 
  6.21  operations account under paragraph (b), the director is 
  6.22  authorized, if necessary, to meet the current obligations of the 
  6.23  lottery and to credit up to 25 percent of an amount equal to the 
  6.24  average annual amount which was authorized to be credited to the 
  6.25  lottery operations account for the previous three fiscal years 
  6.26  but was not needed to meet the obligations of the lottery. 
  6.27     (f) The director shall establish a casino operations 
  6.28  account in the lottery fund.  The director shall credit to the 
  6.29  casino operations account amounts sufficient to pay the 
  6.30  operating costs of the casino and prizes and winnings at the 
  6.31  casino.  The director shall pay from the casino operations fund 
  6.32  all costs of operating the casino established under section 
  6.33  349A.17, including payroll costs or amounts transferred to the 
  6.34  state treasury for payroll costs and all amounts paid out as 
  6.35  prizes or winnings at the casino. 
  6.36     (g) The director may not credit in any fiscal year 
  7.1   thereafter amounts to the lottery operations account which when 
  7.2   totaled exceed 60 percent of gross receipts from the casino 
  7.3   under section 349A.17, as defined in section 297A.65, paragraph 
  7.4   (c), in that fiscal year.  In addition to this percentage the 
  7.5   director is authorized, if necessary to meet the current 
  7.6   obligations of the lottery, to credit up to 25 percent of an 
  7.7   amount equal to the average annual amount which was authorized 
  7.8   to be credited to the casino operations account for the previous 
  7.9   three fiscal years but was not needed to meet the obligations of 
  7.10  the lottery.  
  7.11     Sec. 8.  Minnesota Statutes 2000, section 349A.10, 
  7.12  subdivision 5, is amended to read: 
  7.13     Subd. 5.  [DEPOSIT OF NET PROCEEDS.] (a) Except as provided 
  7.14  in paragraph (b), within 30 days after the end of each month, 
  7.15  the director shall deposit in the state treasury the net 
  7.16  proceeds of the lottery, which is the balance in the lottery 
  7.17  fund after transfers to the lottery prize fund and credits to 
  7.18  the lottery operations account.  Of the net proceeds, 40 percent 
  7.19  must be credited to the Minnesota environment and natural 
  7.20  resources trust fund, and during any period in which bonds are 
  7.21  issued and outstanding under section 16A.67, the remainder must 
  7.22  be credited to the special revenue fund created in section 
  7.23  16A.67, subdivision 3, provided that if bonds are not issued and 
  7.24  outstanding under section 16A.67, such remainder must be 
  7.25  credited to the general fund.  Money credited to the special 
  7.26  revenue fund must be transferred to the debt service fund 
  7.27  established in section 16A.67, subdivision 4, at the times and 
  7.28  in the amounts determined by the commissioner of finance to be 
  7.29  necessary to provide for the payment and security of bonds 
  7.30  issued pursuant to section 16A.67.  On or before the tenth day 
  7.31  of each month, any money in the special revenue fund not 
  7.32  required to be transferred to the debt service fund must be 
  7.33  transferred to the general fund. 
  7.34     (b) The director shall credit 40 percent of the net 
  7.35  proceeds from the casino under section 349A.17 to the Minnesota 
  7.36  environment and natural resources trust fund and the remainder 
  8.1   to the 21st century economic development fund established under 
  8.2   section 349A.18. 
  8.3      Sec. 9.  Minnesota Statutes 2000, section 349A.11, 
  8.4   subdivision 1, is amended to read: 
  8.5      Subdivision 1.  [LOTTERY TICKET; RETAILER.] The director, 
  8.6   an employee of the lottery, a member of the immediate family of 
  8.7   the director or employee residing in the same household may not: 
  8.8      (1) purchase a lottery ticket or participate in gambling at 
  8.9   the casino established under section 349A.17; or 
  8.10     (2) have any personal pecuniary interest in any vendor 
  8.11  holding a lottery procurement contract, or in any lottery 
  8.12  retailer; or 
  8.13     (3) receive any gift, gratuity, or other thing of value, 
  8.14  excluding food or beverage, from any lottery vendor or lottery 
  8.15  retailer, or person applying to be a retailer or vendor, in 
  8.16  excess of $100 in any calendar year.  
  8.17     Sec. 10.  [349A.17] [OPERATION OF CASINO.] 
  8.18     Subdivision 1.  [AGREEMENT.] The director shall construct, 
  8.19  acquire, or lease a facility in the metropolitan area for the 
  8.20  purpose of operating a casino.  The director may acquire or 
  8.21  lease a facility for temporary use as a casino while a permanent 
  8.22  facility is being constructed, acquired, or leased.  
  8.23     Subd. 2.  [TYPES OF GAMBLING.] The director shall provide 
  8.24  for the types of gambling to be conducted at the casino and game 
  8.25  procedures subject to section 349A.04.  Section 349A.13, clause 
  8.26  (2), does not apply to gambling conducted at the casino. 
  8.27     Subd. 3.  [CONTRACTS.] The director may contract with 
  8.28  private vendors for goods and services for the casino, 
  8.29  consistent with the constitutional requirement that the casino 
  8.30  be state operated.  Contracts under this section are subject to 
  8.31  section 349A.07. 
  8.32     Subd. 4.  [PERSONNEL.] The director may as necessary 
  8.33  appoint personnel to operate the casino in accordance with 
  8.34  section 349A.02, subdivision 6, and with chapter 43A, except 
  8.35  that all employees of the director will be in the unclassified 
  8.36  service. 
  9.1      Subd. 5.  [EMPLOYEE LICENSES.] (a) For purposes of this 
  9.2   subdivision, "employee" means a person employed at the casino by 
  9.3   a person or entity holding a contract with the director to 
  9.4   provide goods or services to the casino. 
  9.5      (b) The director shall by rule prescribe the occupations 
  9.6   that the director determines requires licensing in order to 
  9.7   insure the integrity of gambling at the casino, and the fee for 
  9.8   each licensing category.  No person may be an employee at the 
  9.9   casino in an occupation covered by the director's rules unless 
  9.10  the person has a license issued by the director for that 
  9.11  occupation. 
  9.12     (c) An application for a license under this subdivision 
  9.13  must be accompanied by an affidavit of qualification that the 
  9.14  applicant has not (1) been convicted within the previous five 
  9.15  years of a felony or gross misdemeanor, a crime involving fraud 
  9.16  or misrepresentation, or a gambling-related offense, or (2) been 
  9.17  determined to have violated a rule of the director, the racing 
  9.18  commission, or the gambling control board, or a gambling-related 
  9.19  regulatory body in another state. 
  9.20     (d) The director shall investigate each applicant for a 
  9.21  license under this subdivision to the extent the director deems 
  9.22  necessary, and may request the assistance of and may reimburse 
  9.23  the division of alcohol and gambling enforcement in 
  9.24  investigating applicants.  The director may by rule require that 
  9.25  an applicant be fingerprinted or furnish the applicant's 
  9.26  fingerprints.  The director may charge an applicant an 
  9.27  investigation fee to cover the cost of the investigation, and 
  9.28  shall from this fee reimburse the division of alcohol and 
  9.29  gambling enforcement for its share of the cost of the 
  9.30  investigation.  The director has access to all criminal history 
  9.31  data compiled by the division of alcohol and gambling 
  9.32  enforcement on licensees and applicants under this subdivision.  
  9.33  The director may cooperate with national and international 
  9.34  organizations and agencies in conducting investigations.  The 
  9.35  director may by rule provide for examining the qualifications of 
  9.36  an applicant for the license being applied for.  
 10.1      (e) If after compliance with this subdivision the director 
 10.2   determines that an applicant is not disqualified under paragraph 
 10.3   (c) and that licensing the applicant is consistent with the 
 10.4   public health, welfare, and safety, the director shall issue a 
 10.5   license to an applicant or renew a license already issued.  
 10.6   Licenses under this subdivision are valid for one year from the 
 10.7   date of issuance. 
 10.8      (f) The director may revoke or refuse to renew a license 
 10.9   under this subdivision for (1) conduct, including a violation of 
 10.10  a law or rule, that the director determines adversely affects 
 10.11  the integrity of gambling at the casino, and (2) intentionally 
 10.12  making a false statement in a license application.  The director 
 10.13  may suspend a license for a period of time the director 
 10.14  determines for a violation of law or rule. 
 10.15     (g) A license revocation or suspension under this 
 10.16  subdivision for more than 90 days is a contested case under 
 10.17  sections 14.57 to 14.69 of the Administrative Procedure Act and 
 10.18  is in addition to criminal penalties imposed for a violation of 
 10.19  law or rule.  The director may summarily suspend a license for 
 10.20  more than 90 days prior to a contested case hearing where it is 
 10.21  necessary to ensure the integrity of gambling at the casino.  A 
 10.22  contested case hearing must be held within 20 days of the 
 10.23  summary suspension and the administrative law judge's report 
 10.24  must be issued within 20 days from the close of the hearing 
 10.25  record.  In all cases involving summary suspension the director 
 10.26  must issue its final decision within 30 days from receipt of the 
 10.27  report of the administrative law judge and subsequent exceptions 
 10.28  and arguments under section 14.61. 
 10.29     Subd. 6.  [PRIZES.] A person who plays a game at the casino 
 10.30  agrees to be bound by the game procedures applicable to that 
 10.31  game.  The player acknowledges that the determination of 
 10.32  winnings is subject to the rules of the director, game 
 10.33  procedures and claim procedures established for that game, and 
 10.34  any confidential or public validation procedures established by 
 10.35  the director for that game. 
 10.36     Subd. 7.  [AGE RESTRICTION.] No person under the age of 18 
 11.1   years may play any game at the casino or win a prize from any 
 11.2   game at the casino. 
 11.3      Sec. 11.  [349A.18] [21ST CENTURY ECONOMIC DEVELOPMENT 
 11.4   FUND.] 
 11.5      Subdivision 1.  [FUND ESTABLISHED.] A 21st century economic 
 11.6   development fund is established in the state treasury.  The fund 
 11.7   consists of money deposited in it under section 349A.10, 
 11.8   subdivision 5, paragraph (b), other money deposited in or 
 11.9   credited to the fund by law, and interest thereon. 
 11.10     Subd. 2.  [USES OF FUND.] Money in the 21st century 
 11.11  economic development fund may be appropriated by law for: 
 11.12     (1) programs for the arts; 
 11.13     (2) amateur sports facilities and programs; 
 11.14     (3) higher education scholarship programs; 
 11.15     (4) providing telecommunications technology and equipment 
 11.16  to elementary and secondary schools; and 
 11.17     (5) other programs to benefit the citizens of the state.  
 11.18     Sec. 12.  Minnesota Statutes 2000, section 541.20, is 
 11.19  amended to read: 
 11.20     541.20 [RECOVERY OF MONEY LOST.] 
 11.21     Every person who, by playing at cards, dice, or other game, 
 11.22  or by betting on the hands or sides of such as are gambling, 
 11.23  shall lose to any person so playing or betting any sum of money 
 11.24  or any goods, and pays or delivers the same, or any part 
 11.25  thereof, to the winner, may sue for and recover such money by a 
 11.26  civil action, before any court of competent jurisdiction.  For 
 11.27  purposes of this section, gambling shall not include pari-mutuel 
 11.28  wagering conducted under a license issued pursuant to chapter 
 11.29  240, purchase or sale of tickets in the state 
 11.30  lottery, participation in gambling at the casino authorized 
 11.31  under section 349A.17, or gambling authorized under chapters 349 
 11.32  and 349A. 
 11.33     Sec. 13.  Minnesota Statutes 2000, section 541.21, is 
 11.34  amended to read: 
 11.35     541.21 [COMMITMENTS FOR GAMBLING DEBT VOID.] 
 11.36     Every note, bill, bond, mortgage, or other security or 
 12.1   conveyance in which the whole or any part of the consideration 
 12.2   shall be for any money or goods won by gambling or playing at 
 12.3   cards, dice, or any other game whatever, or by betting on the 
 12.4   sides or hands of any person gambling, or for reimbursing or 
 12.5   repaying any money knowingly lent or advanced at the time and 
 12.6   place of such gambling or betting, or lent and advanced for any 
 12.7   gambling or betting to any persons so gambling or betting, shall 
 12.8   be void and of no effect as between the parties to the same, and 
 12.9   as to all persons except such as hold or claim under them in 
 12.10  good faith, without notice of the illegality of the 
 12.11  consideration of such contract or conveyance.  The provisions of 
 12.12  this section shall not apply to:  (1) pari-mutuel wagering 
 12.13  conducted under a license issued pursuant to chapter 240; (2) 
 12.14  purchase of tickets in the state lottery and casino gambling 
 12.15  activities under chapter 349A; (3) gaming activities conducted 
 12.16  pursuant to the Indian Gaming Regulatory Act, 25 U.S.C. 2701 et 
 12.17  seq.; or (4) lawful gambling activities permitted under chapter 
 12.18  349. 
 12.19     Sec. 14.  Minnesota Statutes 2000, section 609.75, 
 12.20  subdivision 3, is amended to read: 
 12.21     Subd. 3.  [WHAT ARE NOT BETS.] The following are not bets: 
 12.22     (1) A contract to insure, indemnify, guarantee or otherwise 
 12.23  compensate another for a harm or loss sustained, even though the 
 12.24  loss depends upon chance. 
 12.25     (2) A contract for the purchase or sale at a future date of 
 12.26  securities or other commodities. 
 12.27     (3) Offers of purses, prizes or premiums to the actual 
 12.28  contestants in any bona fide contest for the determination of 
 12.29  skill, speed, strength, endurance, or quality or to the bona 
 12.30  fide owners of animals or other property entered in such a 
 12.31  contest. 
 12.32     (4) The game of bingo when conducted in compliance with 
 12.33  sections 349.11 to 349.23. 
 12.34     (5) A private social bet not part of or incidental to 
 12.35  organized, commercialized, or systematic gambling. 
 12.36     (6) The operation of equipment or the conduct of a raffle 
 13.1   under sections 349.11 to 349.22, by an organization licensed by 
 13.2   the gambling control board or an organization exempt from 
 13.3   licensing under section 349.166.  
 13.4      (7) Pari-mutuel betting on horse racing when the betting is 
 13.5   conducted under chapter 240.  
 13.6      (8) The purchase and sale of state lottery tickets and 
 13.7   participation in the state-operated casino under chapter 349A.  
 13.8      Sec. 15.  Minnesota Statutes 2000, section 609.761, 
 13.9   subdivision 2, is amended to read: 
 13.10     Subd. 2.  [STATE LOTTERY.] Sections 609.755 and 609.76 do 
 13.11  not prohibit the operation of the state lottery or the sale, 
 13.12  possession, or purchase of tickets for the state lottery or 
 13.13  casino gambling activities under chapter 349A.  
 13.14     Sec. 16.  [APPROPRIATION.] 
 13.15     $......., or so much thereof as the director determines is 
 13.16  needed, is appropriated from the general fund to the director of 
 13.17  the Minnesota state lottery for capital, acquisition, and 
 13.18  initial operating costs of the casino authorized under section 
 13.19  10.  The director must repay this appropriation from the state 
 13.20  lottery fund, with interest at the average monthly rate on 
 13.21  invested treasurer's cash, not later than six months after the 
 13.22  first date of operation of the casino. 
 13.23     Sec. 17.  [EFFECTIVE DATE.] 
 13.24     (a) Sections 1 and 4 to 16 are effective the day following 
 13.25  final enactment. 
 13.26     (b) Sections 2 and 3 are effective July 1, 2001.