HF 1664

1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to gambling; providing for lottery gaming
machines; authorizing the director of the State
Lottery to contract for placement of gaming machines;
establishing horse racing purse payments; imposing a
tax on gaming machine and card club revenue; providing
powers and duties to the director; authorizing
blackjack and other card games; amending Minnesota
Statutes 2004, sections 240.13, by adding a
subdivision; 240.15, subdivision 1; 240.30,
subdivision 8; 240.35, subdivision 1; 299L.07,
subdivisions 2, 2a; 340A.410, subdivision 5; 349A.01,
subdivision 10, by adding subdivisions; 349A.10,
subdivision 3; 349A.13; 541.20; 541.21; 609.75,
subdivision 3; 609.761, subdivision 2; proposing
coding for new law in Minnesota Statutes, chapters
297A; 349A.

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

Section 1.

Minnesota Statutes 2004, section 240.13, is
amended by adding a subdivision to read:

new text begin Subd. 5a. new text end

new text begin Purses; gaming machines. new text end

new text begin From the commission
received by a licensee pursuant to a gaming machine location
contract entered into under section 349A.17, the licensee must
set aside an amount equal to not less than 7.25 percent of the
adjusted gross gaming machine revenues as defined under chapter
349A, for purses for live horse races conducted by the
licensee. Purse payments made pursuant to this subdivision are
in addition to purse payments otherwise established by law or
contract. Twenty percent of the money set aside for purses
pursuant to this subdivision shall be transferred to the
commission and used for the purposes in section 240.18,
subdivisions 2, paragraph (d), and 3, paragraph (b), subject to
the proportionality requirement in section 240.18, subdivision
1. The licensee and the horseperson's organization representing
the majority of horsepersons who have raced at the racetrack
during the preceding 12 months may negotiate percentages
different from those stated in this section if the agreement is
in writing and filed with the racing commission.
new text end

Sec. 2.

Minnesota Statutes 2004, section 240.15,
subdivision 1, is amended to read:

Subdivision 1.

Taxes imposed.

(a) There is imposed a tax
at the rate of six percent of the amount in excess of
$12,000,000 annually withheld from all pari-mutuel pools by the
licensee, including breakage and amounts withheld under section
240.13, subdivision 4. For the purpose of this subdivision,
"annually" is the period from July 1 to June 30 of the next year.

In addition to the above tax, the licensee must designate
and pay to the commission a tax of one percent of the total
amount bet on each racing day, for deposit in the Minnesota
breeders fund.

The taxes imposed by this clause must be paid from the
amounts permitted to be withheld by a licensee under section
240.13, subdivision 4.

(b) The commission may impose an admissions tax of not more
than ten cents on each paid admission at a licensed racetrack on
a racing day if:

(1) the tax is requested by a local unit of government
within whose borders the track is located;

(2) a public hearing is held on the request; and

(3) the commission finds that the local unit of government
requesting the tax is in need of its revenue to meet
extraordinary expenses caused by the racetrack.

new text begin (c) There is imposed a tax at the rate of five percent on
amounts annually received from charges authorized under section
240.30, subdivision 4, less amounts set aside for purse payments
and the breeders fund, as required by section 240.135.
new text end

Sec. 3.

Minnesota Statutes 2004, section 240.30,
subdivision 8, is amended to read:

Subd. 8.

Limitations.

The commission may not approve any
plan of operation under subdivision 6 that exceeds any of the
following limitations:

(1) deleted text begin the maximum number of tables used for card playing at
the card club at any one time, other than tables used for
instruction, demonstrations, or tournament play, may not exceed
50. The table limit exception for tournament play is allowed
for only one tournament per year that lasts for no longer than
14 days;
deleted text end

deleted text begin (2) deleted text end except as provided in clause deleted text begin (3) deleted text end new text begin (2) new text end , no wager may
exceed $60;

deleted text begin (3) deleted text end new text begin (2) new text end for games in which each player is allowed to make
only one wager or has a limited opportunity to change that
wager, no wager may exceed $300.

Sec. 4.

Minnesota Statutes 2004, section 240.35,
subdivision 1, is amended to read:

Subdivision 1.

Generally.

A licensee of the commission
may detain a person if the licensee has probable cause to
believe that the person detained has violated section 609.76
while at a card club authorized by section 240.30 new text begin or at a
facility where gaming machines are located under section
349A.17 new text end . For purposes of this section, "licensee" means the
commission's director of racing security or a security officer
licensed under Minnesota Rules, chapter 7878.

Sec. 5.

new text begin [297A.651] LOTTERY GAMING MACHINES; IN-LIEU TAX.
new text end

new text begin Adjusted gross revenue from the operation of gaming
machines authorized under chapter 349A are exempt from the tax
imposed under section 297A.62. The State Lottery must on or
before the 20th day of each month transmit to the commissioner
an amount equal to the adjusted gross revenue from the operation
of gaming machines, as defined in section 349A.01, for the
previous month multiplied by 35 percent. The commissioner shall
deposit the money transmitted under this paragraph in the state
treasury in the general fund.
new text end

Sec. 6.

Minnesota Statutes 2004, section 299L.07,
subdivision 2, is amended to read:

Subd. 2.

Exclusions.

Notwithstanding subdivision 1, a
gambling device:

(1) may be sold by a person who is not licensed under this
section, if the person (i) is not engaged in the trade or
business of selling gambling devices, and (ii) does not sell
more than one gambling device in any calendar year;

(2) may be sold by the governing body of a federally
recognized Indian tribe described in subdivision 2a, paragraph
(b), clause (1), which is not licensed under this section, if
(i) the gambling device was operated by the Indian tribe, (ii)
the sale is to a distributor licensed under this section, and
(iii) the licensed distributor notifies the commissioner of the
purchase, in the same manner as is required when the licensed
distributor ships a gambling device into Minnesota;

(3) may be possessed by a person not licensed under this
section if the person holds a permit issued under section
299L.08; deleted text begin and
deleted text end

(4) may be possessed by a state agency, with the written
authorization of the director, for display or evaluation
purposes only and not for the conduct of gambling new text begin ; and
new text end

new text begin (5) may be possessed by the State Lottery as authorized
under chapter 349A new text end .

Sec. 7.

Minnesota Statutes 2004, section 299L.07,
subdivision 2a, is amended to read:

Subd. 2a.

Restrictions.

(a) A manufacturer licensed
under this section may sell, offer to sell, lease, or rent, in
whole or in part, a gambling device only to a distributor
licensed under this section new text begin or to the State Lottery as
authorized under chapter 349A new text end .

(b) A distributor licensed under this section may sell,
offer to sell, market, rent, lease, or otherwise provide, in
whole or in part, a gambling device only to:

(1) the governing body of a federally recognized Indian
tribe that is authorized to operate the gambling device under a
tribal state compact under the Indian Gaming Regulatory Act,
Public Law 100-497, and future amendments to it;

(2) a person for use in the person's dwelling for display
or amusement purposes in a manner that does not afford players
an opportunity to obtain anything of value;

(3) another distributor licensed under this section; deleted text begin or
deleted text end

(4) a person in another state who is authorized under the
laws of that state to possess the gambling device new text begin ; or
new text end

new text begin (5) the State Lottery as authorized under chapter 349A new text end .

Sec. 8.

Minnesota Statutes 2004, section 340A.410,
subdivision 5, is amended to read:

Subd. 5.

Gambling prohibited.

(a) Except as otherwise
provided in this subdivision, no retail establishment licensed
to sell alcoholic beverages may keep, possess, or operate, or
permit the keeping, possession, or operation on the licensed
premises of dice or any gambling device as defined in section
349.30, or permit gambling therein.

(b) Gambling equipment may be kept or operated and raffles
conducted on licensed premises and adjoining rooms when the use
of the gambling equipment is authorized by (1) chapter 349, (2)
a tribal ordinance in conformity with the Indian Gaming
Regulatory Act, Public Law 100-497, or (3) a tribal-state
compact authorized under section 3.9221.

(c) Lottery tickets may be purchased and sold within the
licensed premises as authorized by the director of the lottery
under chapter 349A.

(d) Dice may be kept and used on licensed premises and
adjoining rooms as authorized by section 609.761, subdivision 4.

new text begin (e) Gambling devices may be operated on the premises of a
licensed racetrack as authorized by chapter 349A.
new text end

Sec. 9.

Minnesota Statutes 2004, section 349A.01,
subdivision 10, is amended to read:

Subd. 10.

Lottery procurement contract.

"Lottery
procurement contract" means a contract to provide lottery
products, new text begin gaming machines, maintenance of gaming machines,
new text end computer hardware and software used to monitor sales of lottery
tickets new text begin and gaming machine plays new text end , and lottery tickets. "Lottery
procurement contract" does not include a contract to provide an
annuity or prize payment agreement or materials, supplies,
equipment, or services common to the ordinary operation of a
state agency.

Sec. 10.

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

new text begin Subd. 14. new text end

new text begin Gaming machine. new text end

new text begin "Gaming machine" means any
machine, system, or device which, upon payment of consideration
in order to play a game, may award or entitle a player to a
prize by reason of skill of the player or application of the
element of chance, or both.
new text end

Sec. 11.

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

new text begin Subd. 15. new text end

new text begin Gaming machine game. new text end

new text begin "Gaming machine game"
means a game operated by a gaming machine as authorized by the
director.
new text end

Sec. 12.

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

new text begin Subd. 16. new text end

new text begin Gaming machine play. new text end

new text begin "Gaming machine play"
means an electronic record that proves participation in a gaming
machine game.
new text end

Sec. 13.

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

new text begin Subd. 17. new text end

new text begin Adjusted gross gaming machine revenue.
new text end

new text begin "Adjusted gross gaming machine revenue" means the sum of all
money received by the lottery for gaming machine plays, less the
amount paid out in prizes for gaming machine games.
new text end

Sec. 14.

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, from the
lottery operating account. The director shall credit to the
lottery operations account amounts sufficient to pay the
operating costs of the lottery.

(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 new text begin and amounts transferred or retained by a
racetrack pursuant to a location contract under section 349A.17 new text end .

(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.

(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) Notwithstanding the provisions of this subdivision, the
director may not credit, in any fiscal year, to the lottery
operations account which when totaled exceed ten percent of
adjusted gross revenue from the operation of gaming machines at
the gaming facility.
new text end

Sec. 15.

Minnesota Statutes 2004, section 349A.10,
subdivision 6, is amended to read:

Subd. 6.

Budget; plans.

The director shall prepare and
submit a biennial budget plan to the commissioner of finance.
The governor shall recommend the maximum amount available for
the lottery in the budget the governor submits to the
legislature under section 16A.11. The maximum amount available
to the lottery for operating expenses and capital expenditures
shall be determined by law. Operating expenses shall not
include expenses that are a direct function of lottery sales,
which include the cost of lottery prizes, amounts paid to
lottery retailers as sales commissions or other compensation,
amounts paid to produce and deliver scratch lottery games, deleted text begin and
deleted text end amounts paid to an outside vendor to operate and maintain an
online gaming system new text begin , amounts paid to an outside vendor to
operate and maintain a central system for gaming machines and
for other lottery games, and amounts paid to acquire and
maintain gaming machines and equipment used to conduct other
lottery games new text end . In addition, the director shall appear at least
once each fiscal year before the senate and house of
representatives committees having jurisdiction over gambling
policy to present and explain the lottery's plans for future
games and the related advertising and promotions and spending
plans for the next fiscal year.

Sec. 16.

Minnesota Statutes 2004, section 349A.13, is
amended to read:

349A.13 RESTRICTIONS.

Nothing in this chapter:

(1) authorizes the director to conduct a lottery game or
contest the winner or winners of which are determined by the
result of a sporting event other than a horse race conducted
under chapter 240;

(2) authorizes the director to install or operate a lottery
device operated by coin or currency which when operated
determines the winner of a game new text begin except as authorized under
section 349A.17 new text end ; and

(3) authorizes the director to sell pull-tabs as defined
under section 349.12, subdivision 32.

Sec. 17.

new text begin [349A.17] GAMING MACHINES.
new text end

new text begin Subdivision 1. new text end

new text begin Location contract. new text end

new text begin (a) The director may
enter into a contract with a person to provide locations for
gaming machines. Contracts entered into under this section are
not subject to chapter 16C. The director may only enter a
contract under this subdivision with a person that holds a class
A license under chapter 240. The gaming machines may only be
placed at the racetrack for which the class A license under
chapter 240 was issued.
new text end

new text begin (b) In order to be eligible for a contract under this
section, the class A licensee must have conducted at least 50
days of live racing at the racetrack each year within the last
five preceding calendar years. A contract under this section
must contain a provision under which the contract terminates on
the first day of any calendar year following a calendar year
during which the class A licensee has not conducted at least 50
days of live racing at the licensee's racetrack.
new text end

new text begin (c) Contracts entered into must provide for compensation to
the racetrack in an amount equal to at least 55 percent of
adjusted gross gaming machine revenue. From the amount received
by the racetrack under this section, the racetrack shall
annually remit an amount equal to one percent of the adjusted
gross gaming machine revenue to both the city or town and the
county where the racetrack is located.
new text end

new text begin (d) The director may cancel, suspend, or refuse to renew
the location contract or impose a civil penalty if the person:
new text end

new text begin (1) no longer holds a class A license under chapter 240;
new text end

new text begin (2) fails to account for proceeds from the gaming machines;
new text end

new text begin (3) fails to remit funds to the director in accordance with
the location contract;
new text end

new text begin (4) violates a law, rule, or order of the director;
new text end

new text begin (5) fails to comply with any of the terms of the location
contract; or
new text end

new text begin (6) has acted in a manner prejudicial to public confidence
in the integrity of the operation of the gaming machines.
new text end

new text begin The cancellation, suspension, or refusal to renew the
location contract or imposition of a civil penalty under this
paragraph is a contested case under sections 14.57 to 14.69.
new text end

new text begin (e) No gaming machines may be located within a home rule
charter or statutory city, or town, unless the governing body of
the city or town adopts a resolution approving the location of
the gaming machines within the city or town.
new text end

new text begin (f) As a condition of entering into a contract under this
section, the person holding a class A license under chapter 240
must make to the racing commission, for deposit in the general
fund, a onetime payment of $100,000,000 by June 30, 2007. A
contract must include a provision to refund this payment if this
section is repealed by the legislature, revoked by
constitutional amendment, or held unconstitutional by a court of
competent jurisdiction.
new text end

new text begin (g) The contract entered into under this section must
provide for the following provisions:
new text end

new text begin (1) Liquidated damages to recover the initial investment by
the licensee in the event the state, through legislation or
constitutional amendment, revokes all or substantially all of
the forms of gambling authorized under this section. The
liquidated damages may not be greater than the unpaid balance of
any debt incurred by the licensee after the location contract
has been executed and is limited to the debt incurred by the
licensee for the gaming facility license, initial construction,
or acquisition of the gaming facility less the present market
value of the property or other assets related to the debt. Any
liquidated damages provision must expire within ten years.
new text end

new text begin (2) All costs associated with managing the day-to-day
activity of gaming machines, including, but not limited to,
routine and minor service and maintenance, security monitoring,
verifying winners, paying winners, collecting money from gaming
machines, and advertising and marketing of gaming machines shall
be borne by the licensee.
new text end

new text begin Subd. 2. new text end

new text begin Operation. new text end

new text begin (a) All gaming machines that are
placed at a racetrack pursuant to subdivision 1 must be operated
and controlled by the director.
new text end

new text begin (b) Gaming machines must be owned or leased by the director.
new text end

new text begin (c) Gaming machines must be maintained by the lottery, or
by a vendor that is under the control and direction of the
director.
new text end

new text begin (d) The director must have a central communications system
that monitors activities on each gaming machine. The central
communications system must be located at a lottery office.
new text end

new text begin (e) The director must approve the general security
arrangements associated with and relating to the operation of
the gaming machines.
new text end

new text begin (f) Advertising and promotional material produced by the
racetrack relating to gaming machines located at its facility
must be approved by the director.
new text end

new text begin (g) All gaming machines must be accessible to individuals
with disabilities. For the purposes of this subdivision,
"individuals with disabilities" includes any person who has a
physical or sensory impairment which materially limits one or
more major life activities.
new text end

new text begin (h) A reasonable number of gaming machines that are placed
at a racetrack pursuant to subdivision 1 must afford players the
option to receive winnings in the form or either coins or tokens
rather than in the form of a paper receipt.
new text end

new text begin (i) The director may implement such other controls as are
deemed necessary for the operation of gaming machines pursuant
to this section.
new text end

new text begin Subd. 3. new text end

new text begin Games. new text end

new text begin The director shall specify the games
that may be placed on a gaming machine as set forth under
section 349A.04. Gaming machines may conduct pari-mutuel
wagering and display horse races pursuant to specifications set
forth by the director.
new text end

new text begin Subd. 4. new text end

new text begin Prizes. new text end

new text begin A person who plays a gaming machine
agrees to be bound by the rules and game procedures applicable
to that particular gaming machine game. The player acknowledges
that the determination of whether the player has won a prize is
subject to the rules and game procedures adopted by the
director, claim procedures established by the director for the
game, and any confidential or public validation tests
established by the director for that game. A prize claimed from
the play of a gaming machine game is not subject to the
provisions of section 349A.08, subdivision 8.
new text end

new text begin Subd. 5. new text end

new text begin Prohibitions. new text end

new text begin (a) A person under the age of 18
years may not play a game on or claim a prize from a gaming
machine.
new text end

new text begin (b) The director or any employee of the lottery, or a
member of their immediate family residing in the same household,
may not play a game on a gaming machine or receive a prize from
the operation of a gaming machine.
new text end

new text begin Subd. 6. new text end

new text begin Compulsive gambling; report. new text end

new text begin (a) The licensee
shall prominently post, in the area where the gaming machines
are located, the toll-free telephone number established by the
commissioner of human services in connection with the compulsive
gambling program established under section 245.98. The
licensee, with the approval of the director, shall establish a
proactive plan relating to problem gambling.
new text end

new text begin (b) By January 15 of each year, the director shall submit a
report to the legislature, of not more than five pages in
length, setting forth the performance objectives of the plan and
the progress that was made toward those objectives during the
prior calendar year. The licensee may establish a
self-exclusion program by which persons, at their request, may
be excluded from the facility where the gaming machines are
located.
new text end

new text begin Subd. 7. new text end

new text begin Local licenses. new text end

new text begin Except as provided in
subdivision 1, no political subdivision may require a license to
operate a gaming machine, restrict or regulate the placement of
gaming machines, or impose a tax or fee on the business of
operating gaming machines.
new text end

new text begin Subd. 8. new text end

new text begin Reimbursement; racing commission. new text end

new text begin The racing
commission under section 240.02 shall require the licensee to
reimburse the commission's actual costs, including personnel
costs, of regulating the licensee under this section. Amounts
received under this subdivision must be deposited as provided in
section 240.155, subdivision 1.
new text end

Sec. 18.

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 new text begin or other wagering new text end conducted under a license issued
pursuant to chapter 240, purchase or sale of tickets in the
state lottery, or gambling authorized under chapters 349 and
349A.

Sec. 19.

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 new text begin or other
new text end wagering conducted under a license issued pursuant to chapter
240; (2) purchase of tickets in the state lottery new text begin or other
wagering authorized 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. 20.

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
plays on a gaming machine new text end under chapter 349A.

Sec. 21.

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 under
chapter 349A new text begin , or the manufacture, possession, sale, or operation
of a gaming machine under chapter 349A new text end .

Sec. 22. new text begin OTHER GAMES.
new text end

new text begin (a) The Minnesota Racing Commission may authorize a person
with a gaming machine location contract under Minnesota
Statutes, section 349A.17, to conduct other card games that
Indian gaming casinos within this state are authorized by
compact or law to conduct. The Minnesota Racing Commission
shall adopt game procedures and take other actions necessary to
regulate the conduct and ensure the integrity of the games.
new text end

new text begin (b) A tax is imposed on games conducted under this section,
at the rate of 20 percent of the gross gaming receipts from the
conduct of the games. For purposes of this section, gross
gaming receipts means all revenue received by a gaming facility
as wagers on gambling activities, or as payment for chips or
tokens used in gambling activities at the casino, less amounts
paid out by the casino as winnings and for the redemption of
chips or tokens. Gross gaming receipts do not include (1)
adjusted gross gaming machine revenue from gaming machines
operated by the lottery director, or (2) receipts from chips or
tokens that have been purchased but have not been redeemed or
won back by the casino.
new text end

new text begin (c) From the revenue received from games authorized under
this section, the licensee must set aside an amount equal to not
less than 7.25 percent of the gross gaming receipts for purses
for live horse races conducted by the licensee. Purse payments
under this section are in addition to any other purse payments
established by law or contract. Twenty percent of the money set
aside for purses shall be transferred to the Minnesota Racing
Commission and used for the purposes in Minnesota Statutes,
section 240.18. The licensee and the horseperson's organization
representing the majority of horsepersons who have raced at the
racetrack during the preceding 12 months may negotiate
percentages different from those stated in this section if the
agreement is in writing and filed with the racing commission.
new text end

Sec. 23. new text begin LOTTERY BUDGET; GAMING FACILITY.
new text end

new text begin The director of the State Lottery shall submit a budget for
the operation of gaming machines at a gaming facility as
authorized under Minnesota Statutes, section 349A.17, to the
commissioner of finance. Notwithstanding Minnesota Statutes,
section 349A.10, subdivision 6, the director of the State
Lottery may expend amounts necessary to operate gaming at the
gaming facility. Amounts expended by the director of the State
Lottery for the conducting of gaming at the gaming facility in
fiscal years 2006 and 2007 are not subject to the maximum amount
set in law for the operation of the lottery.
new text end

Sec. 24. new text begin SEVERABILITY; SAVINGS.
new text end

new text begin If any part of this act is found to be invalid because it
is in conflict with a provision of the Constitution of the state
of Minnesota or the Constitution of the United States, or for
any other reason, all other provisions of this act shall remain
valid and any rights, remedies, and privileges that have been
otherwise accrued by this act, shall remain in effect and may be
proceeded with and concluded under the provisions of this act.
new text end

Sec. 25. new text begin EFFECTIVE DATE.
new text end

new text begin This act is effective the day following final enactment.
new text end