HF 1074

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to gambling; authorizing issuance of a single 
  1.3             license by the commissioner of public safety; 
  1.4             providing for regulation and taxation of casino; 
  1.5             proposing an amendment to the Minnesota Constitution, 
  1.6             by adding a section to article XIII; appropriating 
  1.7             money; amending Minnesota Statutes 2002, sections 
  1.8             299L.07, subdivision 2a; 349.31, by adding a 
  1.9             subdivision; 541.20; 541.21; 609.761, by adding a 
  1.10            subdivision; proposing coding for new law in Minnesota 
  1.11            Statutes, chapter 349B. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13                             ARTICLE 1 
  1.14                               CASINO 
  1.15     Section 1.  Minnesota Statutes 2002, section 299L.07, 
  1.16  subdivision 2a, is amended to read: 
  1.17     Subd. 2a.  [RESTRICTIONS.] (a) A manufacturer licensed 
  1.18  under this section may sell, offer to sell, lease, or rent, in 
  1.19  whole or in part, a gambling device only to a distributor 
  1.20  licensed under this section. 
  1.21     (b) A distributor licensed under this section may sell, 
  1.22  offer to sell, market, rent, lease, or otherwise provide, in 
  1.23  whole or in part, a gambling device only to: 
  1.24     (1) the governing body of a federally recognized Indian 
  1.25  tribe that is authorized to operate the gambling device under a 
  1.26  tribal state compact under the Indian Gaming Regulatory Act, 
  1.27  Public Law Number 100-497, and future amendments to it; 
  1.28     (2) a person for use in the person's dwelling for display 
  2.1   or amusement purposes in a manner that does not afford players 
  2.2   an opportunity to obtain anything of value; 
  2.3      (3) another distributor licensed under this section; or 
  2.4      (4) a person in another state who is authorized under the 
  2.5   laws of that state to possess the gambling device; or 
  2.6      (5) a casino licensee under chapter 349B. 
  2.7      Sec. 2.  Minnesota Statutes 2002, section 349.31, is 
  2.8   amended by adding a subdivision to read: 
  2.9      Subd. 3.  [CASINO OPERATION PERMITTED.] Sections 349.31 to 
  2.10  349.61 do not prohibit the operation of gambling devices at a 
  2.11  casino licensed under chapter 349B. 
  2.12     Sec. 3.  [349B.015] [DEFINITIONS.] 
  2.13     Subdivision 1.  [CASINO.] "Casino" means a facility where 
  2.14  the forms of gambling authorized under section 349B.06, 
  2.15  subdivision 2, are conducted. 
  2.16     Subd. 2.  [COMMISSIONER.] "Commissioner" means the 
  2.17  commissioner of public safety. 
  2.18     Subd. 3.  [GROSS CASINO RECEIPTS.] "Gross casino receipts" 
  2.19  means all revenue received by a casino as wagers on gambling 
  2.20  activities, or as payment for chips or tokens used in gambling 
  2.21  activities at the casino, less amounts paid out by the casino as 
  2.22  winnings and for redemption of chips or tokens.  "Gross casino 
  2.23  receipts" does not include receipts from chips or tokens that 
  2.24  have been purchased but have not been redeemed or won back by 
  2.25  the casino. 
  2.26     Sec. 4.  [349B.02] [CASINO AUTHORIZED.] 
  2.27     The commissioner may issue one license for the ownership 
  2.28  and operation of a casino in the seven-county metropolitan area, 
  2.29  as defined in section 473.121, subdivision 2, to an applicant 
  2.30  meeting the requirements of this chapter. 
  2.31     Sec. 5.  [349B.03] [CASINO LICENSE.] 
  2.32     Subdivision 1.  [APPLICATION.] An application for a casino 
  2.33  license must be on a form the commissioner prescribes and must 
  2.34  be accompanied by detailed plans and specifications of the 
  2.35  casino, associated buildings, and surrounding grounds.  The 
  2.36  application must contain: 
  3.1      (a) the name and address of the applicant and, if it is a 
  3.2   corporation, the names of all officers, directors, and 
  3.3   shareholders of the corporation and any of its holding 
  3.4   corporations; 
  3.5      (b) the names of any person or persons holding directly, 
  3.6   indirectly, or beneficially an interest of any kind in the 
  3.7   applicant or any of its holding corporations, whether the 
  3.8   interest is financial, administrative, policy making, or 
  3.9   supervisory; 
  3.10     (c) a statement of the assets and liabilities of the 
  3.11  applicant; 
  3.12     (d) an affidavit executed by the applicant setting forth 
  3.13  that no officer, director, or other person with a present or 
  3.14  future direct or indirect financial or management interest in 
  3.15  the casino, to the best of the applicant's knowledge: 
  3.16     (1) is in default in the payment of an obligation or debt 
  3.17  to the state under this chapter; 
  3.18     (2) does not have a felony conviction of record in a state 
  3.19  or federal court and does not have a state or federal felony 
  3.20  charge pending; 
  3.21     (3) is or has been connected with or engaged in any illegal 
  3.22  business; 
  3.23     (4) has ever been found guilty of fraud or 
  3.24  misrepresentation in connection with any gambling activity; or 
  3.25     (5) has ever been found guilty of a violation of a law or 
  3.26  rule relating to gambling; 
  3.27     (e) an irrevocable consent statement, to be signed by the 
  3.28  applicant, which states that suits and actions relating to the 
  3.29  subject matter of the application or acts or omissions arising 
  3.30  from it may be commenced against the applicant in any court of 
  3.31  competent jurisdiction in the state by the service on the 
  3.32  secretary of state of any summons, process, or pleadings 
  3.33  authorized by the laws of this state.  If any summons, process, 
  3.34  or pleadings is served upon the secretary of state, it must be 
  3.35  by duplicate copies.  One copy must be retained in the office of 
  3.36  the secretary of state and the other copy must be forwarded 
  4.1   immediately by certified mail to the address of the applicant, 
  4.2   as shown by the records of the commission; and 
  4.3      (f) an affirmative action plan establishing goals and 
  4.4   timetables consistent with the Minnesota Human Rights Act, 
  4.5   chapter 363. 
  4.6      Subd. 2.  [INVESTIGATION.] Before granting a license under 
  4.7   this section, the commissioner shall conduct a comprehensive 
  4.8   background and financial investigation of the applicant and 
  4.9   sources of financing.  The commissioner may charge an applicant 
  4.10  an investigation fee to cover the cost of the investigation. 
  4.11     Subd. 3.  [HEARINGS.] Before granting a license under this 
  4.12  section, the commissioner shall conduct one or more public 
  4.13  hearings in each area where a casino is or will be located.  The 
  4.14  commission shall also request comments on the application from 
  4.15  the city council or town board of the city or town where a 
  4.16  casino is or will be located, or from the county board if it is 
  4.17  to be located outside a city or town, and from the metropolitan 
  4.18  council. 
  4.19     Subd. 4.  [AGREEMENT WITH RACETRACK.] Before issuance of a 
  4.20  license under this section the license applicant must submit to 
  4.21  the commissioner a signed, binding agreement between the 
  4.22  applicant, the Minnesota racing commission, and the horsepersons 
  4.23  organization that represents the majority of horsepersons who 
  4.24  have raced at a class A racetrack during the calendar year 
  4.25  preceding the year in which the license application is 
  4.26  submitted, under which the license applicant agrees to pay to 
  4.27  the commission an amount equal to two percent of the first 
  4.28  $250,000,000 in annual gross casino receipts, payable monthly.  
  4.29  The commission must pay these amounts to the holder of the class 
  4.30  B license at the racetrack solely for the purpose of paying 
  4.31  purses and purse supplements at horse races conducted at the 
  4.32  class A racetrack.  Payment of purses and purse supplements 
  4.33  under this subdivision in a calendar year may only be made under 
  4.34  an agreement, filed with the commission, between the class B 
  4.35  licensee and the horsepersons organization that represents the 
  4.36  majority of horsepersons who have raced at a class A racetrack 
  5.1   during the preceding calendar year. 
  5.2      Subd. 5.  [LICENSE ISSUANCE.] If, after considering the 
  5.3   information received at the hearing or hearings and the comments 
  5.4   requested under subdivision 4, the commissioner determines that 
  5.5   the license will not adversely affect the public health, 
  5.6   welfare, and safety, and that the applicant is financially able 
  5.7   to operate a casino, the commissioner shall issue a license to 
  5.8   the applicant.  The license is effective until revoked or 
  5.9   suspended by the commissioner or relinquished by the licensee. 
  5.10     Subd. 6.  [CHANGES IN OWNERSHIP OR MANAGEMENT.] If a change 
  5.11  in the officers, directors, shareholders, or other persons with 
  5.12  a present or future direct or indirect financial or management 
  5.13  interest in the licensee, or a change of ownership of more than 
  5.14  five percent of the licensee's shares is made after the 
  5.15  application is filed or the license issued, the applicant or 
  5.16  licensee must notify the commissioner of the changes within five 
  5.17  days of their occurrence and provide the affidavit required by 
  5.18  subdivision 1, clause (d). 
  5.19     Subd. 7.  [LICENSE SUSPENSION AND REVOCATION.] (a) The 
  5.20  commissioner may revoke a license under this section for (i) a 
  5.21  violation of law, order, or rule, violation of an agreement made 
  5.22  under subdivision 4, or operation of a casino in violation of 
  5.23  approved game procedures or an approved security plan, which in 
  5.24  the commissioner's opinion adversely affects public health, 
  5.25  welfare, or safety or the integrity of gambling in Minnesota; 
  5.26  (ii) an intentional false statement made in a license 
  5.27  application; or (iii) failure to perform material covenants or 
  5.28  representations made in a license application. 
  5.29     (b) The commissioner may: 
  5.30     (1) suspend a casino license for up to one year for an 
  5.31  action described in paragraph (a), clause (i); and 
  5.32     (2) suspend a casino license indefinitely if the 
  5.33  commissioner determines that the licensee has as an officer, 
  5.34  director, shareholder, or other person with a direct, indirect, 
  5.35  or beneficial interest a person who is in the commissioner's 
  5.36  opinion inimical to the public health, welfare, or safety or the 
  6.1   integrity of gambling in Minnesota, or who cannot be certified 
  6.2   under subdivision 1, clause (d). 
  6.3      (c) The commissioner may not revoke or suspend a license 
  6.4   under this subdivision unless the commissioner has granted the 
  6.5   licensee a reasonable amount of time to cure the violation 
  6.6   giving rise to the revocation or suspension and, in the 
  6.7   commissioner's reasonable judgment, the licensee has failed to 
  6.8   do so. 
  6.9      (d) A license revocation or suspension under this 
  6.10  subdivision is a contested case under sections 14.57 to 14.69 of 
  6.11  the Administrative Procedure Act, and is in addition to criminal 
  6.12  penalties imposed for a violation of law or rule. 
  6.13     Sec. 6.  [349B.04] [EMPLOYEE LICENSES.] 
  6.14     Subdivision 1.  [LICENSE REQUIRED.] Any person employed at 
  6.15  a licensed casino in an occupation that the commissioner by 
  6.16  order determines requires licensing in order to ensure the 
  6.17  public health, welfare, or safety, or the integrity of gambling 
  6.18  in Minnesota, must have a license issued by the commissioner. 
  6.19     Subd. 2.  [APPLICATION.] (a) An application for a casino 
  6.20  occupational license must be on a form the commissioner 
  6.21  prescribes and must be accompanied by an affidavit of 
  6.22  qualification that the applicant: 
  6.23     (1) does not have a felony conviction of record in a state 
  6.24  or federal court and does not have a state or federal felony 
  6.25  charge pending; 
  6.26     (2) is not and never has been connected with or engaged in 
  6.27  an illegal business; 
  6.28     (3) has never been found guilty of fraud or 
  6.29  misrepresentation in connection with gambling; and 
  6.30     (4) has never been found guilty of a serious violation of 
  6.31  law or rule relating to gambling. 
  6.32     (b) The application must also contain an irrevocable 
  6.33  consent statement, to be signed by the applicant, which states 
  6.34  that suits and actions relating to the subject matter of the 
  6.35  application or acts or omissions arising from it may be 
  6.36  commenced against the applicant in any court of competent 
  7.1   jurisdiction in this state by the service on the secretary of 
  7.2   state of any summons, process, or pleading authorized by the 
  7.3   laws of this state.  If any summons, process, or pleading is 
  7.4   served upon the secretary of state, it must be by duplicate 
  7.5   copies.  One copy must be retained in the office of the 
  7.6   secretary of state and the other copy must be forwarded 
  7.7   immediately by certified mail to the address of the applicant, 
  7.8   as shown by the records of the commissioner. 
  7.9      Subd. 3.  [INVESTIGATIONS.] The commissioner shall 
  7.10  investigate each applicant for a casino occupational license to 
  7.11  the extent the commissioner deems necessary.  The commissioner 
  7.12  may require that an applicant be fingerprinted or furnish the 
  7.13  applicant's fingerprints.  Investigations must be conducted and 
  7.14  their costs paid in the manner prescribed by section 349B.03, 
  7.15  subdivision 2.  The commissioner may cooperate with national and 
  7.16  international organizations and agencies in conducting 
  7.17  investigations.  The commissioner may by rule provide for 
  7.18  examining the qualifications of an applicant for the license 
  7.19  being applied for. 
  7.20     Subd. 4.  [LICENSE ISSUANCE AND RENEWAL.] If the 
  7.21  commissioner determines that the applicant is qualified for the 
  7.22  occupation for which licensing is sought and will not adversely 
  7.23  affect the public health, welfare, and safety or the integrity 
  7.24  of gambling in Minnesota, the commissioner may issue a casino 
  7.25  occupational license to the applicant.  If the commissioner 
  7.26  makes a similar finding for a renewal of a casino occupational 
  7.27  license the commissioner may renew the license.  Casino 
  7.28  occupational licenses are effective for one year. 
  7.29     Subd. 5.  [REVOCATION AND SUSPENSION.] (a) The commissioner 
  7.30  may revoke a casino occupational license for a violation of law 
  7.31  or rule which in the commissioner's opinion adversely affects 
  7.32  the integrity of gambling in Minnesota, or for an intentional 
  7.33  false statement made in a license application.  The commissioner 
  7.34  may suspend a casino occupational license for up to one year for 
  7.35  a violation of law, order, or rule. 
  7.36     (b) The commissioner may not revoke or suspend a license 
  8.1   under this subdivision unless the commissioner has granted the 
  8.2   licensee a reasonable amount of time to cure the violation 
  8.3   giving rise to the revocation or suspension and, in the 
  8.4   commissioner's reasonable judgment, the licensee has failed to 
  8.5   do so. 
  8.6      (c) A license revocation or suspension for more than 90 
  8.7   days is a contested case under sections 14.57 to 14.69 of the 
  8.8   Administrative Procedure Act and is in addition to criminal 
  8.9   penalties imposed for a violation of law or rule.  The 
  8.10  commissioner may summarily suspend a license for more than 90 
  8.11  days prior to a contested case hearing where it is necessary to 
  8.12  ensure the integrity of gambling.  A contested case hearing must 
  8.13  be held within 20 days of the summary suspension and the 
  8.14  administrative law judge's report must be issued within 20 days 
  8.15  from the close of the hearing record.  In all cases involving 
  8.16  summary suspension the commissioner must issue its final 
  8.17  decision within 30 days from receipt of the report of the 
  8.18  administrative law judge and subsequent exceptions and argument 
  8.19  under section 14.61. 
  8.20     Sec. 7.  [349B.05] [LICENSE FEES AND PAYMENTS.] 
  8.21     Subdivision 1.  [CASINO LICENSE.] As a condition of 
  8.22  issuance of a license under section 349B.03 the applicant must 
  8.23  make to the commissioner, for deposit in the general fund, a 
  8.24  onetime payment of $450,000,000.  This payment may not be 
  8.25  prorated or paid in installments.  The payment must be made 
  8.26  before a casino license may be issued.  No part of this payment 
  8.27  may be refunded to the licensee unless, during the 30 years 
  8.28  immediately following the date of license issuance, (1) more 
  8.29  than one casino license in the seven-county metropolitan area is 
  8.30  authorized by law, or (2) the provisions of this chapter 
  8.31  authorizing operation of the casino are repealed.  If either of 
  8.32  these events occurs during that period the licensee is entitled 
  8.33  to a refund of the payment at the rate of $15,000,000 for each 
  8.34  full or partial year during the 30-year period in which a second 
  8.35  or subsequent license or a repeal is in effect. 
  8.36     Subd. 2.  [CASINO OCCUPATIONAL LICENSES.] The commissioner 
  9.1   shall establish by rule a schedule of fees, not exceeding $100 
  9.2   per year, for casino occupational licenses.  License payments 
  9.3   must be deposited in the general fund. 
  9.4      Sec. 8.  [349B.06] [GAME PROCEDURES.] 
  9.5      Subdivision 1.  [FILING.] A casino licensee under this 
  9.6   chapter must file with the commissioner a complete set of rules 
  9.7   and procedures to govern all forms of gambling authorized at the 
  9.8   casino.  The game procedures must specify payout percentages or 
  9.9   ranges of payout percentages for each form of gambling.  The 
  9.10  commissioner shall review the game procedures and may approve 
  9.11  them if the commissioner determines that they adequately 
  9.12  guarantee the integrity and fairness of gambling and the 
  9.13  interests of casino patrons.  A casino licensee may not conduct 
  9.14  gambling at the casino except in conformity with the approved 
  9.15  game procedures.  The commissioner may conduct audits, 
  9.16  inspections, and investigations of gambling at the casino to 
  9.17  ensure compliance with this section. 
  9.18     Subd. 2.  [AMENDMENTS.] A casino licensee may amend 
  9.19  approved game procedures only if (1) the amendments have been 
  9.20  filed with and approved by the commissioner, and (2) the amended 
  9.21  procedures have been available to the public at the facility for 
  9.22  at least three days before their adoption. 
  9.23     Subd. 3.  [GAMBLING AUTHORIZED.] Game procedures approved 
  9.24  by the commissioner may include only the following forms of 
  9.25  gambling: 
  9.26     (1) card games, including blackjack; 
  9.27     (2) bingo; and 
  9.28     (3) gambling on video gambling devices and slot machines. 
  9.29     Sec. 9.  [349B.07] [SECURITY PLAN.] 
  9.30     Subdivision 1.  [FILING.] A casino licensee under this 
  9.31  chapter must file with the commissioner a comprehensive plan for 
  9.32  security and surveillance at the casino.  The security plan must 
  9.33  provide that security and surveillance will be undertaken only 
  9.34  by persons holding casino occupational licenses.  The security 
  9.35  plan must provide for the testing of all gambling devices by the 
  9.36  commissioner, or by a private entity under contract to the 
 10.1   commissioner.  The commissioner shall review the security plan 
 10.2   and may approve it if the commissioner determines that it meets 
 10.3   customary industry standards and is reasonably adequate to 
 10.4   ensure the integrity and safety of casino operations.  A casino 
 10.5   licensee may not operate the casino except in conformity with 
 10.6   the approved security plan.  The commissioner may conduct 
 10.7   audits, inspections, and investigations of gambling at the 
 10.8   casino to ensure compliance with this section. 
 10.9      Subd. 2.  [AMENDMENTS.] A casino licensee may amend a 
 10.10  security plan only if the amendments have been filed with and 
 10.11  approved by the commissioner. 
 10.12     Sec. 10.  [349B.08] [EXCLUSION OF CERTAIN PERSONS.] 
 10.13     Subdivision 1.  [PERSONS EXCLUDED.] The commissioner may by 
 10.14  order exclude from a licensed casino a person who: 
 10.15     (1) has a felony conviction of record under the laws of any 
 10.16  state or the United States; 
 10.17     (2) has had a gambling-related license suspended, revoked, 
 10.18  or denied by an authority in another jurisdiction; or 
 10.19     (3) is determined by the commissioner, on the basis of 
 10.20  evidence presented to the commissioner, to be a threat to the 
 10.21  integrity of gambling in Minnesota. 
 10.22     Subd. 2.  [HEARING; APPEAL.] An order to exclude a person 
 10.23  from a licensed casino must be made by the commissioner at a 
 10.24  public hearing of which the person to be excluded must have at 
 10.25  least five days' notice.  If present at the hearing, the person 
 10.26  must be permitted to show cause why the exclusion should not be 
 10.27  ordered.  An appeal of the order may be made in the same manner 
 10.28  as other appeals under sections 14.63 to 14.68. 
 10.29     Subd. 3.  [REASONABLE TIME TO CURE.] The commissioner may 
 10.30  not issue an order under this subdivision unless the 
 10.31  commissioner has granted the person who is the subject of the 
 10.32  order a reasonable amount of time to cure the violation or 
 10.33  condition giving rise to the order and, in the commissioner's 
 10.34  reasonable judgment, the person has failed to do so. 
 10.35     Subd. 4.  [PROHIBITIONS.] It is a gross misdemeanor for a 
 10.36  person named in an exclusion order to enter, attempt to enter, 
 11.1   or be on the premises of a licensed casino while the order is in 
 11.2   effect, and for a casino licensee knowingly to permit an 
 11.3   excluded person to enter or be on the premises. 
 11.4      Subd. 5.  [EXCLUSIONS BY CASINO.] A casino licensee may 
 11.5   eject and exclude from the casino premises any person who is in 
 11.6   violation of any state law or commissioner's rule or order or 
 11.7   who is a threat to the integrity of gambling or the public 
 11.8   safety.  A person so excluded from the casino premises may 
 11.9   appeal the exclusion to the commissioner and must be given a 
 11.10  public hearing on the appeal upon request.  At the hearing the 
 11.11  person must be given the opportunity to show cause why the 
 11.12  exclusion should not have been ordered.  If the commissioner 
 11.13  after the hearing finds that the integrity of gambling and the 
 11.14  public safety do not justify the exclusion, the commissioner 
 11.15  shall order the casino licensee making the exclusion to 
 11.16  reinstate or readmit the person.  An appeal of a commissioner's 
 11.17  order upholding the exclusion is governed by sections 14.63 to 
 11.18  14.68. 
 11.19     Sec. 11.  [349B.09] [AUDIT.] 
 11.20     The commissioner shall take all actions the commissioner 
 11.21  determines necessary, including appointment of one or more 
 11.22  on-site auditors who are employees of the department of public 
 11.23  safety, to ensure adequate accounting and auditing of funds and 
 11.24  finances of the casino.  The commissioner shall annually audit 
 11.25  the casino's financial operations or arrange with the licensee 
 11.26  for an annual outside audit of the casino's financial operations.
 11.27  The commissioner shall assess to the licensee all costs incurred 
 11.28  by the commissioner in complying with this section. 
 11.29     Sec. 12.  [349B.10] [TAX.] 
 11.30     Subdivision 1.  [TAX IMPOSED.] There is imposed a tax on 
 11.31  casino operations under this chapter at the rate of 15 percent 
 11.32  of gross casino receipts. 
 11.33     Subd. 2.  [PAYMENT.] The casino licensee must remit the tax 
 11.34  to the commissioner within seven days of the day on which it was 
 11.35  collected.  The payments must be accompanied by a detailed 
 11.36  statement of the remittance on a form the commissioner 
 12.1   prescribes.  The commissioner may by rule provide for the direct 
 12.2   deposit of required payments in the commission's account in a 
 12.3   financial institution within the state. 
 12.4      Subd. 3.  [GENERAL FUND; DEPOSIT OF RECEIPTS.] Two-thirds 
 12.5   of the revenue received by the commissioner under subdivision 1 
 12.6   must be deposited in the general fund. 
 12.7      Subd. 4.  [CASINO REVENUE FUND; DEPOSIT OF RECEIPTS.] A 
 12.8   casino revenue fund is established in the state treasury.  The 
 12.9   commissioner shall deposit one-third of all revenue received 
 12.10  under subdivision 1 in the fund.  Money in the fund is further 
 12.11  allocated and appropriated as follows: 
 12.12     (1) Forty percent must be credited to a charitable gambling 
 12.13  account in the fund.  Money in the account is appropriated to 
 12.14  the gambling control board for purposes of carrying out the 
 12.15  board's powers and duties under chapter 349.  If the board 
 12.16  imposes a license or premises permit fee on licensed 
 12.17  organizations that is based on gross receipts, the board shall 
 12.18  use money so appropriated as a credit to organizations against 
 12.19  such a license or premises permit fee. 
 12.20     (2) Forty percent must be credited to a gambling 
 12.21  enforcement account.  Money in the account is appropriated to 
 12.22  the commissioner to carry out the powers and duties of the 
 12.23  division of alcohol and gambling enforcement under this chapter 
 12.24  and chapter 299L. 
 12.25     (3) Twenty percent must be credited to a compulsive 
 12.26  gambling program account.  Money in the account is appropriated 
 12.27  to the commissioner of human services for purposes of the 
 12.28  compulsive gambling treatment program under section 245.98. 
 12.29     Sec. 13.  [349B.11] [COMPULSIVE GAMBLING HOTLINE POSTING.] 
 12.30     A casino licensee must post prominently at locations 
 12.31  throughout the casino, in a manner approved by the commissioner 
 12.32  of human services, the toll-free telephone number established by 
 12.33  the commissioner of human services in connection with the 
 12.34  compulsive gambling program. 
 12.35     Sec. 14.  Minnesota Statutes 2002, section 541.20, is 
 12.36  amended to read: 
 13.1      541.20 [RECOVERY OF MONEY LOST.] 
 13.2      Every person who, by playing at cards, dice, or other game, 
 13.3   or by betting on the hands or sides of such as are gambling, 
 13.4   shall lose to any person so playing or betting any sum of money 
 13.5   or any goods, and pays or delivers the same, or any part 
 13.6   thereof, to the winner, may sue for and recover such money by a 
 13.7   civil action, before any court of competent jurisdiction.  For 
 13.8   purposes of this section, gambling shall not include pari-mutuel 
 13.9   wagering conducted under a license issued pursuant to chapter 
 13.10  240, purchase or sale of tickets in the state lottery, or 
 13.11  gambling authorized under chapters chapter 349 and, 349A, or 
 13.12  349B. 
 13.13     Sec. 15.  Minnesota Statutes 2002, section 541.21, is 
 13.14  amended to read: 
 13.15     541.21 [COMMITMENTS FOR GAMBLING DEBT VOID.] 
 13.16     Every note, bill, bond, mortgage, or other security or 
 13.17  conveyance in which the whole or any part of the consideration 
 13.18  shall be for any money or goods won by gambling or playing at 
 13.19  cards, dice, or any other game whatever, or by betting on the 
 13.20  sides or hands of any person gambling, or for reimbursing or 
 13.21  repaying any money knowingly lent or advanced at the time and 
 13.22  place of such gambling or betting, or lent and advanced for any 
 13.23  gambling or betting to any persons so gambling or betting, shall 
 13.24  be void and of no effect as between the parties to the same, and 
 13.25  as to all persons except such as hold or claim under them in 
 13.26  good faith, without notice of the illegality of the 
 13.27  consideration of such contract or conveyance.  The provisions of 
 13.28  this section shall not apply to:  (1) pari-mutuel wagering 
 13.29  conducted under a license issued pursuant to chapter 240; (2) 
 13.30  purchase of tickets in the state lottery under chapter 349A; (3) 
 13.31  gaming activities conducted pursuant to the Indian Gaming 
 13.32  Regulatory Act, 25 U.S.C. 2701 et seq.; or (4) lawful gambling 
 13.33  activities permitted under chapter 349; or (5) gambling licensed 
 13.34  under chapter 349B. 
 13.35     Sec. 16.  Minnesota Statutes 2002, section 609.761, is 
 13.36  amended by adding a subdivision to read: 
 14.1      Subd. 2a.  [LICENSED CASINO.] Sections 609.755 and 609.76 
 14.2   do not prohibit the operation of a casino licensed under chapter 
 14.3   349B. 
 14.4      Sec. 17.  [EFFECTIVE DATE.] 
 14.5      Sections 1 to 16 are effective January 1, 2005, if the 
 14.6   constitutional amendment proposed in article 2 is adopted by the 
 14.7   people at the 2004 general election. 
 14.8                              ARTICLE 2 
 14.9                       CONSTITUTIONAL AMENDMENT 
 14.10     Section 1.  [CONSTITUTIONAL AMENDMENT PROPOSED.] 
 14.11     An amendment to the Minnesota Constitution is proposed to 
 14.12  the people.  If the amendment is adopted, a section shall be 
 14.13  added to article XIII to read: 
 14.14     Sec. 13.  The legislature may authorize by law the 
 14.15  licensing of a privately operated casino in the seven-county 
 14.16  metropolitan area and may impose a tax on casino gross 
 14.17  receipts.  Not more than one such license may be issued during 
 14.18  the 30-year period after the date of issuance of the first 
 14.19  license. 
 14.20     Sec. 2.  [SUBMISSION TO VOTERS.] 
 14.21     The proposed amendment shall be submitted to the people at 
 14.22  the 2004 general election.  The question submitted shall be: 
 14.23     "Shall the Minnesota Constitution be amended to permit, 
 14.24  after January 1, 2005, the legislature to authorize a privately 
 14.25  operated casino in the metropolitan area and impose a tax on 
 14.26  casino gross receipts, with not more than one such license being 
 14.27  allowed for 30 years after the date of issuance of the first 
 14.28  license? 
 14.29                             Yes........
 14.30                             No........"