as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am
Engrossments | ||
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Introduction | Posted on 08/14/1998 |
1.1 A bill for an act 1.2 relating to gambling; abolishing pari-mutuel horse 1.3 racing employee positions; reducing the number of 1.4 members of the racing commission; requiring the 1.5 commissioner of agriculture to provide administrative 1.6 and technical support for the racing commission; 1.7 abolishing the gambling control board and the state 1.8 lottery board; creating the department of gambling and 1.9 transferring the responsibilities of the abolished 1.10 boards to it; transferring the division of gambling 1.11 enforcement from the department of public safety to 1.12 the department of gambling; making technical and 1.13 conforming changes; amending Minnesota Statutes 1994, 1.14 sections 10A.01, subdivision 18; 10A.09, subdivision 1.15 1; 15.01; 15A.081, subdivision 1; 16B.54, subdivision 1.16 2; 240.02, subdivision 1; 240.03; 240.05, subdivision 1.17 2; 240.13, subdivision 6; 240.155; 240.16, 1.18 subdivisions 1 and 5; 240.24, subdivision 2; 240.28, 1.19 subdivisions 1 and 2; 299L.01; 299L.02, subdivisions 1.20 2, 4, and 5; 299L.03, subdivisions 1, 4, 5, and 7; 1.21 349.12, subdivision 10, and by adding subdivisions; 1.22 349.13; 349.151, subdivision 8; 349.152, subdivision 1.23 1; 349.153; 349.155, subdivision 4; 349.162, 1.24 subdivisions 2 and 6; 349.163, subdivision 6; 349.165, 1.25 subdivision 2; 349.18, subdivision 1; 349.19, 1.26 subdivision 6; 349A.01, by adding a subdivision; 1.27 349A.02, subdivisions 1 and 8; 349A.03, subdivision 2; 1.28 349A.04; 349A.05; 349A.06, subdivision 2; 349A.08, 1.29 subdivision 7; 349A.11; and 349A.12, subdivision 4; 1.30 proposing coding for new law in Minnesota Statutes, 1.31 chapters 240; and 349B; repealing Minnesota Statutes 1.32 1994, sections 240.01, subdivision 20; 240.011; 1.33 240.04; 240.16, subdivision 6; 349.12, subdivision 6; 1.34 349.151, subdivisions 1, 2, and 3a; 349.152, 1.35 subdivision 4; 349A.01, subdivision 2; and 349A.03, 1.36 subdivision 1. 1.37 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.38 ARTICLE 1 1.39 RACING COMMISSION 1.40 Section 1. Minnesota Statutes 1994, section 240.02, 1.41 subdivision 1, is amended to read: 2.1 Subdivision 1. [COMMISSION.]AThe Minnesota racing 2.2 commissionis established with the powers and duties specified2.3in this section. The commissionconsists ofninefive members 2.4 appointed by the governor with the advice and consent of the 2.5 senate. Not more thanfivethree of the members may belong to 2.6 the same political party. The governor shall designate the 2.7 chair of the commission. Appointments by the governor are for 2.8 terms of six years. An appointment to fill a vacancy in an 2.9 unexpired term is for the remainder of the term and is with the 2.10 advice and consent of the senate. 2.11 Sec. 2. Minnesota Statutes 1994, section 240.03, is 2.12 amended to read: 2.13 240.03 [COMMISSION POWERS AND DUTIES.] 2.14 The commission has the following powers and duties: 2.15 (1) to regulate horse racing in Minnesota to ensure that it 2.16 is conducted in the public interest; 2.17 (2) to issue licenses as provided in this chapter; 2.18 (3) to enforce all laws and rules governing horse racing; 2.19 (4) to collect and distribute all taxes provided for in 2.20 this chapter; 2.21 (5) to conduct necessary investigations and inquiries and 2.22 compel the submission of information, documents, and records it 2.23 deems necessary to carry out its duties; 2.24 (6) to supervise the conduct of pari-mutuel betting on 2.25 horse racing; 2.26 (7) toemploy andsupervise personnel under this chapter; 2.27 (8) to determine the number of racing days to be held in 2.28 the state and at each licensed racetrack; and 2.29 (9) to take all necessary steps to ensure the integrity of 2.30 racing in Minnesota. 2.31 Sec. 3. [240.041] [EMPLOYEES.] 2.32 The commissioner of agriculture shall provide office space, 2.33 equipment and supplies, and administrative and technical support 2.34 to the commission. The commissioner of agriculture shall 2.35 provide these services from its existing complement. The 2.36 commission shall not employ any personnel for the regulation and 3.1 supervision of horse racing. 3.2 Sec. 4. Minnesota Statutes 1994, section 240.05, 3.3 subdivision 2, is amended to read: 3.4 Subd. 2. [FORMS.] All application forms for licenses must 3.5 contain a statement to the effect that by accepting a license 3.6 from the commission a licensee consents to having property or 3.7 person subject to inspection at any timeby the director of3.8racing security orby security officers designated by the 3.9 commission. 3.10 Sec. 5. Minnesota Statutes 1994, section 240.13, 3.11 subdivision 6, is amended to read: 3.12 Subd. 6. [SIMULCASTING.] (a) The commission may permit an 3.13 authorized licensee to conduct simulcasting at the licensee's 3.14 facility on any day authorized by the commission. All 3.15 simulcasts must comply with the Interstate Horse Racing Act of 3.16 1978, United States Code, title 15, sections 3001 to 3007. 3.17 (b) The commission may not authorize any day for 3.18 simulcasting at a class A facility during the racing season, and 3.19 a licensee may not be allowed to transmit out-of-state telecasts 3.20 of races the licensee conducts, unless the licensee has obtained 3.21 the approval of the horsepersons' organization representing the 3.22 majority of the horsepersons racing the breed involved at the 3.23 licensed racetrack during the preceding 12 months. 3.24 (c) The licensee may pay fees and costs to an entity 3.25 transmitting a telecast of a race to the licensee for purposes 3.26 of conducting pari-mutuel wagering on the race. The licensee 3.27 may deduct fees and costs related to the receipt of televised 3.28 transmissions from a pari-mutuel pool on the televised race, 3.29 provided that one-half of any amount recouped in this manner 3.30 must be added to the amounts required to be set aside for purses. 3.31 (d) With the approval of the commission and subject to the 3.32 provisions of this subdivision, a licensee may transmit 3.33 telecasts of races it conducts, for wagering purposes, to 3.34 locations outside the state, and the commission may allow this 3.35 to be done on a commingled pool basis. 3.36 (e) Except as otherwise provided in this section, 4.1 simulcasting may be conducted on a separate pool basis or, with 4.2 the approval of the commission, on a commingled pool basis. All 4.3 provisions of law governing pari-mutuel betting apply to 4.4 simulcasting except as otherwise provided in this subdivision or 4.5 in the commission's rules. If pools are commingled, wageringat4.6the licensed facilitymust be on equipment electronically linked 4.7 with the equipmentat the licensee's class A facility or withof 4.8 the sending racetrack via the totalizator computer at the 4.9 licensee's class A facility. Subject to the approval of the 4.10 commission, the types of betting, takeout, and distribution of 4.11 winnings on commingled pari-mutuel pools are those in effect at 4.12 the sending racetrack. Breakage for pari-mutuel pools on a 4.13 televised race must be calculated in accordance with the law or 4.14 rules governing the sending racetrack for these pools, and must 4.15 be distributed in a manner agreed to between the licensee and 4.16 the sending racetrack. Notwithstanding subdivision 7 and 4.17 section 240.15, subdivision 5, the commission may approve 4.18 procedures governing the definition and disposition of unclaimed 4.19 tickets that are consistent with the law and rules governing 4.20 unclaimed tickets at the sending racetrack. For the purposes of 4.21 this section, "sending racetrack" is either the racetrack 4.22 outside of this state where the horse race is conducted or, with 4.23 the consent of the racetrack, an alternative facility that 4.24 serves as the racetrack for the purpose of commingling pools. 4.25 (f) If there is more than one class B licensee conducting 4.26 racing within the seven-county metropolitan area, simulcasting 4.27 may be conducted only on races run by a breed that ran at the 4.28 licensee's class A facility within the 12 months preceding the 4.29 event. 4.30 Sec. 6. Minnesota Statutes 1994, section 240.155, is 4.31 amended to read: 4.32 240.155 [REIMBURSEMENT ACCOUNTS AND PROCEDURES.] 4.33 Subdivision 1. [REIMBURSEMENT ACCOUNT CREDIT.] Money 4.34 received by thecommissioncommissioner of agriculture as 4.35 reimbursement for the costs of services provided byassistant4.36 veterinarians and stewards must be deposited in the state 5.1 treasury and credited to aracing commissioncommissioner of 5.2 agriculture reimbursement account, except as provided under 5.3 subdivision 2. Receipts are appropriated to thecommission5.4 commissioner of agriculture to pay the costs of providing the 5.5 services. 5.6 Subd. 2. [GENERAL FUND CREDIT.] Money received by the 5.7commissioncommissioner of agriculture as reimbursement for the 5.8 compensation of a steward who is an employee of thecommission5.9 commissioner of agriculture for which a general fund 5.10 appropriation has been made must be credited to the general fund. 5.11 Sec. 7. Minnesota Statutes 1994, section 240.16, 5.12 subdivision 1, is amended to read: 5.13 Subdivision 1. [POWERS AND DUTIES.] All horse races run at 5.14 a licensed racetrack must be presided over by a board of three 5.15 stewards, who must be appointees of or persons approved by the 5.16commission or persons approved by itcommissioner of agriculture. 5.17 Thecommissioncommissioner of agriculture shall designate one 5.18 steward as chair. At least two stewards for all races either 5.19 shall be employees of thecommissioncommissioner of agriculture 5.20 who shall serve in the unclassified service, or shall be under 5.21 contract with thecommissioncommissioner of agriculture to 5.22 serve as stewards. The commission may delegate the following 5.23 duties and powers to a board of stewards: 5.24 (a) to ensure that races are run in accordance with the 5.25 commission's rules; 5.26 (b) to supervise the conduct of racing to ensure the 5.27 integrity of the sport; 5.28 (c) to settle disputes arising from the running of horse 5.29 races, and to certify official results; 5.30 (d) to impose on licensees, for violation of law or 5.31 commission rules, fines not exceeding $2,000 and license 5.32 suspensions not exceeding 90 days; 5.33 (e) to recommend to the commission where warranted 5.34 penalties in excess of those in clause (d); 5.35 (f) to otherwise enforce the laws and rules of racing; and 5.36 (g) to perform other duties and have other powers assigned 6.1 by the commission. 6.2 Sec. 8. Minnesota Statutes 1994, section 240.16, 6.3 subdivision 5, is amended to read: 6.4 Subd. 5. [COSTS.] Thecommissioncommissioner of 6.5 agriculture may require that a licensee reimburseitthe 6.6 commissioner for the costs of providing a state-paid steward or 6.7 stewards to supervise racing at the licensee's racetrack. 6.8 Sec. 9. Minnesota Statutes 1994, section 240.24, 6.9 subdivision 2, is amended to read: 6.10 Subd. 2. [EXCEPTION.] Notwithstanding subdivision 1, the 6.11 commission by rule shall allow the use of: (1) topical external 6.12 applications that do not contain anesthetics or steroids; (2) 6.13 food additives; (3) Furosemide or other pulmonary hemostatic 6.14 agents if the agents are administered under the visual 6.15 supervision of the veterinarian or a designee of the 6.16 veterinarian employed by thecommissioncommissioner of 6.17 agriculture; and (4) nonsteroidal anti-inflammatory drugs, 6.18 provided that the test sample does not contain more than three 6.19 micrograms of the substance or metabolites thereof per 6.20 milliliter of blood plasma. For purposes of this clause, "test 6.21 sample" means any bodily substance including blood, urine, 6.22 saliva, or other substance as directed by the commission, taken 6.23 from a horse under the supervision of thecommission6.24 veterinarian employed by the commissioner of agriculture and in 6.25 such manner as prescribed by the commission for the purpose of 6.26 analysis. 6.27 The commission shall adopt emergency rules to implement the 6.28 provisions of this subdivision. 6.29 Sec. 10. Minnesota Statutes 1994, section 240.28, 6.30 subdivision 1, is amended to read: 6.31 Subdivision 1. [FINANCIAL INTEREST.] No person may serve 6.32 onor be employed bythe commission or be an employee of the 6.33 commissioner of agriculture with duties that include providing 6.34 services to the commission who has an interest in any 6.35 corporation, association, or partnership which holds a license 6.36 from the commission or which holds a contract to supply goods or 7.1 services to a licensee or at a licensed racetrack, including 7.2 concessions contracts. No memberor employeeof the 7.3 commission or employee of the commissioner of agriculture whose 7.4 duties include providing services to the commission may own, 7.5 wholly or in part, or have an interest in a horse which races at 7.6 a licensed racetrack in Minnesota. No memberor employeeof the 7.7 commission or employee of the commissioner of agriculture whose 7.8 duties include providing services to the commission may have a 7.9 financial interest in or be employed in a profession or business 7.10 which conflicts with the performance of duties as a member or 7.11 employee. 7.12 Sec. 11. Minnesota Statutes 1994, section 240.28, 7.13 subdivision 2, is amended to read: 7.14 Subd. 2. [BETTING.] No memberor employeeof the 7.15 commission or employee of the commissioner of agriculture whose 7.16 duties include providing services to the commission may bet or 7.17 cause a bet to be made on a race at a licensed racetrack while 7.18 serving onor being employed bythe commission or while being 7.19 employed by the commissioner of agriculture. No person 7.20 appointed or approved by thedirectorcommissioner of 7.21 agriculture as a steward may bet or cause a bet to be made at a 7.22 licensed racetrack during a racing meeting at which the person 7.23 is serving as a steward. The commission shall by rule prescribe 7.24 such restrictions on betting by its licensees as it deems 7.25 necessary to protect the integrity of racing. 7.26 Sec. 12. [REPEALER.] 7.27 Minnesota Statutes 1994, sections 240.01, subdivision 20; 7.28 240.011; 240.04; and 240.16, subdivision 6, are repealed. 7.29 ARTICLE 2 7.30 BOARDS ABOLISHED 7.31 Section 1. [RACING COMMISSION, GAMBLING CONTROL BOARD, AND 7.32 LOTTERY BOARD ABOLISHED; RESPONSIBILITIES TRANSFERRED.] 7.33 (a) The gambling control board and the state lottery board 7.34 are abolished. Except as otherwise provided in this act, the 7.35 responsibilities of the boards are transferred under Minnesota 7.36 Statutes, section 15.039, to the department of gambling, 8.1 established in article 3. 8.2 (b) The division of gambling enforcement is transferred 8.3 from the department of public safety to the department of 8.4 gambling, established in article 3. Minnesota Statutes, section 8.5 15.039, applies to this transfer. 8.6 ARTICLE 3 8.7 DEPARTMENT OF GAMBLING 8.8 Section 1. [349B.02] [DEPARTMENT OF GAMBLING.] 8.9 Subdivision 1. [EXECUTIVE AGENCY.] The department of 8.10 gambling is an agency in the executive branch of state 8.11 government under the supervision and control of a commissioner 8.12 appointed by the governor with the advice and consent of the 8.13 senate. 8.14 Subd. 2. [STRUCTURE.] The department consists of the 8.15 gambling control division and the gambling enforcement division. 8.16 Subd. 3. [POWERS AND DUTIES.] The powers and duties of the 8.17 commissioner are as specified in chapters 299L, 349, and 349A, 8.18 as well as other powers and duties imposed by law. 8.19 Sec. 2. [APPROPRIATION REDUCTION.] 8.20 The appropriation for the department of gambling for the 8.21 biennium beginning July 1, 1995, must be reduced by $....... in 8.22 the first year and $....... in the second year from the combined 8.23 appropriation for the previous biennium for the boards and 8.24 division abolished or transferred by article 2. 8.25 Sec. 3. [REPEALER.] 8.26 Minnesota Statutes 1994, sections 349.151, subdivisions 1, 8.27 2, and 3a; and 349A.03, subdivision 1, are repealed. 8.28 ARTICLE 4 8.29 CONFORMING AMENDMENTS 8.30 Section 1. Minnesota Statutes 1994, section 10A.01, 8.31 subdivision 18, is amended to read: 8.32 Subd. 18. "Public official" means any: 8.33 (a) member of the legislature; 8.34 (b) constitutional officer in the executive branch and the 8.35 officer's chief administrative deputy; 8.36 (c) member, chief administrative officer or deputy chief 9.1 administrative officer of a state board or commission which has 9.2 at least one of the following powers: (i) the power to adopt, 9.3 amend or repeal rules, or (ii) the power to adjudicate contested 9.4 cases or appeals; 9.5 (d) commissioner, deputy commissioner, or assistant 9.6 commissioner of any state department as designated pursuant to 9.7 section 15.01; 9.8 (e) individual employed in the executive branch who is 9.9 authorized to adopt, amend or repeal rules or adjudicate 9.10 contested cases; 9.11 (f) executive director of the state board of investment; 9.12 (g) executive director of the Indian affairs intertribal 9.13 board; 9.14 (h) commissioner of the iron range resources and 9.15 rehabilitation board; 9.16 (i) commissioner of mediation services; 9.17 (j) deputy of any official listed in clauses (e) to (i); 9.18 (k) judge of the workers' compensation court of appeals; 9.19 (l) administrative law judge or compensation judge in the 9.20 state office of administrative hearings or referee in the 9.21 department of economic security; 9.22 (m) solicitor general or deputy, assistant or special 9.23 assistant attorney general; 9.24 (n) individual employed by the legislature as secretary of 9.25 the senate, legislative auditor, chief clerk of the house, 9.26 revisor of statutes, or researcher, legislative analyst, or 9.27 attorney in the office of senate counsel and research or house 9.28 research; 9.29 (o) member, regional administrator, division director, 9.30 general counsel, or operations manager of the metropolitan 9.31 council; 9.32 (p)the director of the racing commission, the director of9.33the gambling control board,the director of the state lottery,9.34 and the deputy director of the state lottery; 9.35 (q)directordirectors of thedivision ofgambling control 9.36 and gambling enforcement divisions in the department ofpublic10.1safetygambling; 10.2 (r) member or executive director of the higher education 10.3 facilities authority; 10.4 (s) member of the board of directors or president of the 10.5 Minnesota world trade center corporation; or 10.6 (t) member or chief administrator of a metropolitan agency. 10.7 Sec. 2. Minnesota Statutes 1994, section 10A.09, 10.8 subdivision 1, is amended to read: 10.9 Subdivision 1. [TIME FOR FILING.] Except for a candidate 10.10 for elective office in the judicial branch, an individual shall 10.11 file a statement of economic interest with the board: 10.12 (1) within 60 days of accepting employment as a public 10.13 official or a local official in a metropolitan governmental 10.14 unit; 10.15 (2) within 14 days after filing an affidavit of candidacy 10.16 or petition to appear on the ballot for an elective public 10.17 office or an elective local office in a metropolitan 10.18 governmental unit; 10.19 (3) in the case of a public official requiring the advice 10.20 and consent of the senate, within 14 days after undertaking the 10.21 duties of office; or 10.22 (4) in the case of members of the Minnesota racing 10.23 commission, the director of theMinnesota racing commission,10.24chief of security, medical officer, inspector of10.25pari-mutuelsdivision of the department of gambling, and 10.26 stewards employed or approved by thecommissioncommissioner of 10.27 agriculture or persons who fulfill those duties under contract, 10.28 within 60 days of accepting or assuming duties. 10.29 Sec. 3. Minnesota Statutes 1994, section 15.01, is amended 10.30 to read: 10.31 15.01 [DEPARTMENTS OF THE STATE.] 10.32 The following agencies are designated as the departments of 10.33 the state government: the department of administration; the 10.34 department of agriculture; the department of commerce; the 10.35 department of corrections; the department of education; the 10.36 department of economic security; the department of trade and 11.1 economic development; the department of finance; the department 11.2 of health; the department of human rights; the department of 11.3 gambling; the department of labor and industry; the department 11.4 of military affairs; the department of natural resources; the 11.5 department of employee relations; the department of public 11.6 safety; the department of public service; the department of 11.7 human services; the department of revenue; the department of 11.8 transportation; the department of veterans affairs; and their 11.9 successor departments. 11.10 Sec. 4. Minnesota Statutes 1994, section 15A.081, 11.11 subdivision 1, is amended to read: 11.12 Subdivision 1. [SALARY RANGES.] The governor shall set the 11.13 salary rate within the ranges listed below for positions 11.14 specified in this subdivision, upon approval of the legislative 11.15 commission on employee relations and the legislature as provided 11.16 by section 3.855: 11.17 Salary Range 11.18 $57,500-$78,500 11.19 Commissioner of finance; 11.20 Commissioner of education; 11.21 Commissioner of transportation; 11.22 Commissioner of human services; 11.23 Commissioner of revenue; 11.24 Commissioner of public safety; 11.25 Commissioner of gambling; 11.26 Executive director, state board of investment; 11.27 $50,000-$67,500 11.28 Commissioner of administration; 11.29 Commissioner of agriculture; 11.30 Commissioner of commerce; 11.31 Commissioner of corrections; 11.32 Commissioner of economic security; 11.33 Commissioner of employee relations; 11.34 Commissioner of health; 11.35 Commissioner of labor and industry; 11.36 Commissioner of natural resources; 12.1 Commissioner of trade and economic development; 12.2 Chief administrative law judge; office of administrative 12.3 hearings; 12.4 Commissioner, pollution control agency; 12.5 Director, office of waste management; 12.6 Commissioner, housing finance agency; 12.7 Executive director, public employees retirement 12.8 association; 12.9 Executive director, teacher's retirement association; 12.10 Executive director, state retirement system; 12.11 $42,500-$60,000 12.12 Commissioner of human rights; 12.13 Commissioner, department of public service; 12.14 Commissioner of veterans affairs; 12.15 Commissioner, bureau of mediation services; 12.16 Commissioner, public utilities commission; 12.17 Member, transportation regulation board; 12.18 Ombudsman for corrections; 12.19 Ombudsman for mental health and retardation. 12.20 Sec. 5. Minnesota Statutes 1994, section 16B.54, 12.21 subdivision 2, is amended to read: 12.22 Subd. 2. [VEHICLES.] (a) [ACQUISITION FROM AGENCY; 12.23 APPROPRIATION.] The commissioner may direct an agency to make a 12.24 transfer of a passenger motor vehicle or truck currently 12.25 assigned to it. The transfer must be made to the commissioner 12.26 for use in the central motor pool. The commissioner shall 12.27 reimburse an agency whose motor vehicles have been paid for with 12.28 funds dedicated by the constitution for a special purpose and 12.29 which are assigned to the central motor pool. The amount of 12.30 reimbursement for a motor vehicle is its average wholesale price 12.31 as determined from the midwest edition of the National 12.32 Automobile Dealers Association official used car guide. 12.33 (b) [PURCHASE.] To the extent that funds are available for 12.34 the purpose, the commissioner may purchase or otherwise acquire 12.35 additional passenger motor vehicles and trucks necessary for the 12.36 central motor pool. The title to all motor vehicles assigned to 13.1 or purchased or acquired for the central motor pool is in the 13.2 name of the department of administration. 13.3 (c) [TRANSFER AT AGENCY REQUEST.] On the request of an 13.4 agency, the commissioner may transfer to the central motor pool 13.5 any passenger motor vehicle or truck for the purpose of 13.6 disposing of it. The department or agency transferring the 13.7 vehicle or truck must be paid for it from the motor pool 13.8 revolving account established by this section in an amount equal 13.9 to two-thirds of the average wholesale price of the vehicle or 13.10 truck as determined from the midwest edition of the National 13.11 Automobile Dealers Association official used car guide. 13.12 (d) [VEHICLES; MARKING.] The commissioner shall provide for 13.13 the uniform marking of all motor vehicles. Motor vehicle colors 13.14 must be selected from the regular color chart provided by the 13.15 manufacturer each year. The commissioner may further provide 13.16 for the use of motor vehicles without marking by the governor, 13.17 the lieutenant governor, the division of criminal apprehension, 13.18 division of liquor control,division of gambling enforcement,13.19 arson investigators of the division of fire marshal in the 13.20 department of public safety, financial institutions division of 13.21 the department of commerce, state lottery, criminal 13.22 investigators of the department of revenue, state-owned 13.23 community service facilities in the department of human 13.24 services, the investigative staff of the department of economic 13.25 security, the gambling control division and gambling enforcement 13.26 division in the department of gambling, and the office of the 13.27 attorney general. 13.28 Sec. 6. Minnesota Statutes 1994, section 299L.01, is 13.29 amended to read: 13.30 299L.01 [DIVISION OFGAMBLING ENFORCEMENT DIVISION.] 13.31 Subdivision 1. [DEFINITIONS.] (a) For the purposes of this 13.32 chapter, the terms defined in this subdivision have the meanings 13.33 given them. 13.34 (b) "Division" means thedivision ofgambling enforcement 13.35 division of the department of gambling. 13.36 (c) "Commissioner" means the commissioner ofpublic14.1safetygambling. 14.2 (d) "Director" means the director of the gambling 14.3 enforcement division. 14.4 (e) "Manufacturer" means a person who assembles from raw 14.5 materials or subparts a gambling device for sale or use in 14.6 Minnesota. 14.7 (f) "Distributor" means a person who sells, offers to sell, 14.8 or otherwise provides a gambling device to a person in Minnesota. 14.9 (g) "Used gambling device" means a gambling device five or 14.10 more years old from the date of manufacture. 14.11 Subd. 2. [ESTABLISHED.] Thedivision ofgambling 14.12 enforcement division is a division in the department ofpublic14.13safetygambling under the control and supervision of a director, 14.14 appointed by the commissioner and servingat the commissioner's14.15pleasurein theunclassifiedclassified service. The director 14.16 must be a person who is licensed or eligible to be licensed as a 14.17 peace officer under sections 626.84 to 626.863. 14.18 Subd. 3. [EMPLOYEES.] The director shall employ in the 14.19 divisionof gambling enforcementpersonnel, in the classified 14.20 service, necessary to carry out the duties under this chapter. 14.21 The director shall request the bureau of criminal apprehension 14.22 to perform background checks on persons who are finalists for 14.23 employment with the division but may employ personnel pending 14.24 completion of the background check. 14.25 Subd. 4. [CONFLICT OF INTEREST.] (a) The director and any 14.26 person employed by the division may not have a direct or 14.27 indirect financial interest in: 14.28 (1) a class A or B licensee of the racing commission; 14.29 (2) a lottery retailer under contract with the state 14.30 lottery; 14.31 (3) a person who is under a lottery procurement contract 14.32 with the state lottery; 14.33 (4) a bingo hall, manufacturer, or distributor licensed 14.34 under chapter 349; or 14.35 (5) a manufacturer or distributor licensed under this 14.36 chapter. 15.1 (b) The director or an employee of the divisionof gambling15.2enforcementmay not participate in the conducting of lawful 15.3 gambling under chapter 349. 15.4 Sec. 7. Minnesota Statutes 1994, section 299L.02, 15.5 subdivision 2, is amended to read: 15.6 Subd. 2. [GAMBLING.] The director shall: 15.7 (1) conduct background investigations of applicants for 15.8 licensing as a manufacturer or distributor of gambling equipment 15.9 or as a bingo hall under chapter 349; and 15.10 (2) when requested by the director of gambling 15.11 control division, or when the director believes it to be 15.12 reasonable and necessary, inspect the premises of a licensee 15.13 under chapter 349 to determine compliance with law and with the 15.14 rules of theboardcommissioner, or to conduct an audit of the 15.15 accounts, books, records, or other documents required to be kept 15.16 by the licensee. 15.17 The director may charge applicants under clause (1) a 15.18 reasonable fee to cover the costs of the investigation. 15.19 Sec. 8. Minnesota Statutes 1994, section 299L.02, 15.20 subdivision 4, is amended to read: 15.21 Subd. 4. [OTHER GAMBLING.] The directorof gambling15.22enforcementshall cooperate with all state and local agencies in 15.23 the detection and apprehension of unlawful gambling. 15.24 Sec. 9. Minnesota Statutes 1994, section 299L.02, 15.25 subdivision 5, is amended to read: 15.26 Subd. 5. [BACKGROUND CHECKS.] In any background check 15.27 required to be conducted by the divisionof gambling enforcement15.28 under this chapter, chapter 240, 349, 349A, or section 3.9221, 15.29 the director may, or shall when required by law, require that 15.30 fingerprints be taken and the director may forward the 15.31 fingerprints to the Federal Bureau of Investigation for the 15.32 conducting of a national criminal history check. The director 15.33 may charge a fee for fingerprint recording and investigation 15.34 under section 3.9221. 15.35 Sec. 10. Minnesota Statutes 1994, section 299L.03, 15.36 subdivision 1, is amended to read: 16.1 Subdivision 1. [INSPECTIONS; ACCESS.] In conducting any 16.2 inspection authorized under this chapter or chapter 240, 349, or 16.3 349A, the employees of the divisionof gambling enforcementhave 16.4 free and open access to all parts of the regulated business 16.5 premises, and may conduct the inspection at any reasonable time 16.6 without notice and without a search warrant. For purposes of 16.7 this subdivision, "regulated business premises" means premises 16.8 where: 16.9 (1) lawful gambling is conducted by an organization 16.10 licensed under chapter 349 or by an organization exempt from 16.11 licensing under section 349.166; 16.12 (2) gambling equipment is manufactured, sold, distributed, 16.13 or serviced by a manufacturer or distributor licensed under 16.14 chapter 349; 16.15 (3) records required to be maintained under chapter 240, 16.16 297E, 349, or 349A are prepared or retained; 16.17 (4) lottery tickets are sold by a lottery retailer under 16.18 chapter 340A; 16.19 (5) races are conducted by a person licensed under chapter 16.20 240; or 16.21 (6) gambling devices are manufactured or distributed, 16.22 including places of storage under section 299L.07. 16.23 Sec. 11. Minnesota Statutes 1994, section 299L.03, 16.24 subdivision 4, is amended to read: 16.25 Subd. 4. [ACCESS TO CRIMINAL HISTORY.] The director has 16.26 access to all criminal history data compiled by the bureau of 16.27 criminal apprehension on any person licensed or under contract 16.28 with the state lottery, pari-mutuel racingcommissiondivision, 16.29 or the gambling controlboarddivision, or any applicant for 16.30 licensing or a person who has submitted a bid on a lottery 16.31 contractor or any employee and finalist for employment with the 16.32 state lottery. 16.33 Sec. 12. Minnesota Statutes 1994, section 299L.03, 16.34 subdivision 5, is amended to read: 16.35 Subd. 5. [ARREST POWERS.] The director may designate 16.36 certain employees within the divisionof gambling enforcement17.1 who are authorized to arrest or investigate any person who is 17.2 suspected of violating any provision of chapter 240, 349, or 17.3 349A, or is suspected of committing any crime involving 17.4 gambling, and to conduct searches and seizures to enforce any of 17.5 those laws. Any employee authorized by this subdivision to make 17.6 an arrest must be licensed under sections 626.84 to 626.863. 17.7 Sec. 13. Minnesota Statutes 1994, section 299L.03, 17.8 subdivision 7, is amended to read: 17.9 Subd. 7. [OTHER POWERS.] Nothing in this chapter limits 17.10 the authority of the divisionof gambling enforcementto 17.11 exercise any other power specified under chapter240,349,or 17.12 349A. 17.13 Sec. 14. Minnesota Statutes 1994, section 349.12, is 17.14 amended by adding a subdivision to read: 17.15 Subd. 8a. [COMMISSIONER.] "Commissioner" is the 17.16 commissioner of the department of gambling. 17.17 Sec. 15. Minnesota Statutes 1994, section 349.12, 17.18 subdivision 10, is amended to read: 17.19 Subd. 10. [DIRECTOR.] "Director" is the director of the 17.20 gambling controlboarddivision. 17.21 Sec. 16. Minnesota Statutes 1994, section 349.12, is 17.22 amended by adding a subdivision to read: 17.23 Subd. 12. [DIVISION.] "Division" is the gambling control 17.24 division of the department of gambling. 17.25 Sec. 17. Minnesota Statutes 1994, section 349.13, is 17.26 amended to read: 17.27 349.13 [LAWFUL GAMBLING.] 17.28 Lawful gambling is not a lottery or gambling within the 17.29 meaning of sections 609.75 to 609.76 if it is conducted under 17.30 this chapter. A pull-tab dispensing device permitted byboard17.31 rule is not a gambling device within the meaning of sections 17.32 609.75 to 609.76 and chapter 299L. 17.33 Sec. 18. Minnesota Statutes 1994, section 349.151, 17.34 subdivision 8, is amended to read: 17.35 Subd. 8. [CRIMINAL HISTORY.] Theboardcommissioner may 17.36 request the director of the gambling enforcement division to 18.1 assist in investigating the background of an applicant for a 18.2 license under this chapter, and the director of the gambling 18.3 enforcement division may bill the license applicant for the cost 18.4 thereof. Theboardcommissioner has access to all criminal 18.5 history data compiled by thedivision ofgambling 18.6 enforcement division on licensees and applicants. 18.7 Sec. 19. Minnesota Statutes 1994, section 349.152, 18.8 subdivision 1, is amended to read: 18.9 Subdivision 1. [APPOINTED.] Thegovernorcommissioner 18.10 shall appoint, with the advice and consent of the senate,a 18.11 directorfrom a list of one or more persons submitted by the18.12board. The directorwho serves in theunclassifiedclassified 18.13 serviceat the pleasure of the governor. 18.14 Sec. 20. Minnesota Statutes 1994, section 349.153, is 18.15 amended to read: 18.16 349.153 [CONFLICT OF INTEREST.] 18.17 (a) A person may notserve on the board,be the director, 18.18 or be an employee of theboarddivision who has an interest in 18.19 any corporation, association, limited liability company, or 18.20 partnership that is licensed by theboardcommissioner as a 18.21 distributor, manufacturer, or a bingo hall under section 349.164. 18.22 (b)A member of the board,The director, or an employee of 18.23 theboarddivision may not accept employment with, receive 18.24 compensation directly or indirectly from, or enter into a 18.25 contractual relationship with an organization that conducts 18.26 lawful gambling, a distributor, a bingo hall or a manufacturer 18.27 while employed withor a member oftheboarddivision or within 18.28 one year after terminating employment with or leaving theboard18.29 division. 18.30 (c) A distributor, bingo hall, manufacturer, or 18.31 organization licensed to conduct lawful gambling may not hire a 18.32 former employee,or director, or memberof thegambling control18.33boarddivision for one year after the employee,or director,18.34or memberhas terminated employment with or left thegambling18.35control boarddivision. 18.36 Sec. 21. Minnesota Statutes 1994, section 349.155, 19.1 subdivision 4, is amended to read: 19.2 Subd. 4. [LICENSE REVOCATION, SUSPENSION, DENIAL; 19.3 CENSURE.] Theboardcommissioner may by order (i) deny, suspend, 19.4 revoke, or refuse to renew a license or premises permit, or (ii) 19.5 censure a licensee or applicant, ifitthe commissioner finds 19.6 that the order is in the public interest and that the applicant 19.7 or licensee, or a director, officer, partner, governor, person 19.8 in a supervisory or management position of the applicant or 19.9 licensee, an employee eligible to make sales on behalf of the 19.10 applicant or licensee, or direct or indirect holder of more than 19.11 a five percent financial interest in the applicant or licensee: 19.12 (1) has violated or failed to comply with any provision of 19.13 this chapter or chapter 297E or 299L, or any rule adopted or 19.14 order issued thereunder; 19.15 (2) has filed an application for a license that is 19.16 incomplete in any material respect, or contains a statement 19.17 that, in light of the circumstances under which it was made, is 19.18 false, misleading, fraudulent, or a misrepresentation; 19.19 (3) has made a false statement in a document or report 19.20 required to be submitted to theboardcommissioner or the 19.21 commissioner of revenue, or has made a false statement to 19.22 theboardcommissioner, the compliance review group, or the 19.23 director; 19.24 (4) has been convicted of a crime in another jurisdiction 19.25 that would be a felony if committed in Minnesota; 19.26 (5) is permanently or temporarily enjoined by any gambling 19.27 regulatory agency from engaging in or continuing any conduct or 19.28 practice involving any aspect of gambling; 19.29 (6) has had a gambling-related license revoked or 19.30 suspended, or has paid or been required to pay a monetary 19.31 penalty of $2,500 or more, by a gambling regulator in another 19.32 state or jurisdiction; 19.33 (7) has been the subject of any of the following actions by 19.34 the director of the gambling enforcement division or 19.35 commissionerof public safety: (i) had a license under chapter 19.36 299L denied, suspended, or revoked, (ii) been censured, 20.1 reprimanded, has paid or been required to pay a monetary penalty 20.2 or fine, or (iii) has been the subject of any other discipline 20.3 by the director or commissioner; or 20.4 (8) has engaged in conduct that is contrary to the public 20.5 health, welfare, or safety, or to the integrity of gambling; or 20.6 (9) based on past activities or criminal record poses a 20.7 threat to the public interest or to the effective regulation and 20.8 control of gambling, or creates or enhances the dangers of 20.9 unsuitable, unfair, or illegal practices, methods, and 20.10 activities in the conduct of gambling or the carrying on of the 20.11 business and financial arrangements incidental to the conduct of 20.12 gambling. 20.13 Sec. 22. Minnesota Statutes 1994, section 349.162, 20.14 subdivision 2, is amended to read: 20.15 Subd. 2. [RECORDS REQUIRED.] A distributor must maintain a 20.16 record of all gambling equipment which it sells to 20.17 organizations. The record must include: 20.18 (1) the identity of the person from whom the distributor 20.19 purchased the equipment; 20.20 (2) the registration number of the equipment; 20.21 (3) the name, address, and license or exempt permit number 20.22 of the organization to which the sale was made; 20.23 (4) the date of the sale; 20.24 (5) the name of the person who ordered the equipment; 20.25 (6) the name of the person who received the equipment; 20.26 (7) the type of equipment; 20.27 (8) the serial number of the equipment; 20.28 (9) the name, form number, or other identifying information 20.29 for each game; and 20.30 (10) in the case of bingo hard cards or paper sheets sold 20.31 on and after January 1, 1991, the individual number of each card 20.32 or sheet. 20.33 The invoice for each sale must be retained for at least 20.34 3-1/2 years after the sale is completed and a copy of each 20.35 invoice is to be delivered to theboardcommissioner in the 20.36 manner and time prescribed by theboardcommissioner. For 21.1 purposes of this section, a sale is completed when the gambling 21.2 equipment is physically delivered to the purchaser. 21.3 Each distributor must report monthly to theboard21.4 commissioner, in a form theboardcommissioner prescribes, its 21.5 sales of each type of gambling equipment. Employees of 21.6 theboarddivision and thedivision ofgambling 21.7 enforcement division may inspect the business premises, books, 21.8 records, and other documents of a distributor at any reasonable 21.9 time without notice and without a search warrant. 21.10 Theboardcommissioner may require that a distributor 21.11 submit the monthly report and invoices required in this 21.12 subdivision via magnetic media or electronic data transfer. 21.13 Sec. 23. Minnesota Statutes 1994, section 349.162, 21.14 subdivision 6, is amended to read: 21.15 Subd. 6. [REMOVAL OF EQUIPMENT FROM INVENTORY.] Authorized 21.16 employees of theboarddivision, thedivision ofgambling 21.17 enforcementof the department of public safetydivision, and the 21.18 commissioner of revenue may remove gambling equipment from the 21.19 inventories of distributors and organizations and test that 21.20 equipment to determine its compliance with all applicable laws 21.21 and rules. A distributor or organization may return to the 21.22 manufacturer thereof any gambling equipment which is determined 21.23 to be in violation of law or rule. The cost to an organization 21.24 of gambling equipment removed from inventory under this 21.25 paragraph and found to be in compliance with all applicable law 21.26 and rules is an allowable expense under section 349.15. 21.27 Sec. 24. Minnesota Statutes 1994, section 349.163, 21.28 subdivision 6, is amended to read: 21.29 Subd. 6. [SAMPLES OF GAMBLING EQUIPMENT.] Theboard21.30 commissioner shall require each licensed manufacturer to submit 21.31 to theboardcommissioner one or more samples of each item of 21.32 gambling equipment the manufacturer manufactures for use or 21.33 resale in this state. Theboardcommissioner shall inspect and 21.34 test all the equipment it deems necessary to determine the 21.35 equipment's compliance with law and board rules. Samples 21.36 required under this subdivision must be approved by theboard22.1 commissioner before the equipment being sampled is shipped into 22.2 or sold for use or resale in this state. Theboardcommissioner 22.3 may request the assistance of thecommissioner of public safety22.4and thedirector of the state lotteryboardin performing the 22.5 tests. 22.6 Sec. 25. Minnesota Statutes 1994, section 349.165, 22.7 subdivision 2, is amended to read: 22.8 Subd. 2. [CONTENTS OF APPLICATION.] An application for a 22.9 premises permit must contain: 22.10 (1) the name and address of the applying organization and 22.11 of the organization's gambling manager; 22.12 (2) a description of the site for which the permit is 22.13 sought, including its address and, where applicable, its 22.14 placement within another premises or establishment; 22.15 (3) if the site is leased, the name and address of the 22.16 lessor and information about the lease the board requires, 22.17 including all rents and other charges for the use of the site; 22.18 and 22.19 (4) other information theboardcommissioner deems 22.20 necessary to carry outitsthe purposes of this chapter. 22.21 An organization holding a premises permit must notify the 22.22boardcommissioner in writing within ten days whenever any 22.23 material change is made in the above information. 22.24 Sec. 26. Minnesota Statutes 1994, section 349.18, 22.25 subdivision 1, is amended to read: 22.26 Subdivision 1. [LEASE OR OWNERSHIP REQUIRED.] (a) An 22.27 organization may conduct lawful gambling only on premises it 22.28 owns or leases. Leases must be on a form prescribed by the 22.29boardcommissioner. Except for leases entered into before the 22.30 effective date of this section, the term of the lease may not 22.31 begin before the effective date of the premises permit and must 22.32 expire on the same day that the premises permit expires. Copies 22.33 of all leases must be made available to employees of theboard22.34 division and thedivision ofgambling enforcement division on 22.35 request. A lease may not provide for payments determined 22.36 directly or indirectly by the receipts or profits from lawful 23.1 gambling. Theboardcommissioner may prescribe by rule limits 23.2 on the amount of rent which an organization may pay to a lessor 23.3 for premises leased for lawful gambling provided that no rule of 23.4 theboardcommissioner may prescribe a limit of less than $1,000 23.5 per month on rent paid for premises used for lawful gambling 23.6 other than bingo. Any rule adopted by theboardcommissioner 23.7 limiting the amount of rent to be paid may only be effective for 23.8 leases entered into, or renewed, after the effective date of the 23.9 rule. 23.10 (b) No person, distributor, manufacturer, lessor, or 23.11 organization other than the licensed organization leasing the 23.12 space may conduct any activity on the leased premises during 23.13 times when lawful gambling is being conducted on the premises. 23.14 (c) At a site where the leased premises consists of an area 23.15 on or behind a bar at which alcoholic beverages are sold and 23.16 employees of the lessor are employed by the organization as 23.17 pull-tab sellers at the site, pull-tabs and tipboard tickets may 23.18 be sold and redeemed by those employees at any place on or 23.19 behind the bar, but the tipboards and receptacles for pull-tabs 23.20 and cash drawers for lawful gambling receipts must be maintained 23.21 only within the leased premises. 23.22 (d) Employees of a lessor may participate in lawful 23.23 gambling on the premises provided (1) if pull-tabs or tipboards 23.24 are sold, the organization voluntarily posts, or is required to 23.25 post, the major prizes as specified in section 349.172; and (2) 23.26 any employee of the lessor participating in lawful gambling is 23.27 not a gambling employee for the organization conducting lawful 23.28 gambling on the premises. 23.29 Sec. 27. Minnesota Statutes 1994, section 349.19, 23.30 subdivision 6, is amended to read: 23.31 Subd. 6. [PRESERVATION OF RECORDS.] Records required to be 23.32 kept by this section must be preserved by a licensed 23.33 organization for at least 3-1/2 years and may be inspected by 23.34 the commissioner of revenue, the board,or the commissionerof23.35public safetyat any reasonable time without notice or a search 23.36 warrant. 24.1 Sec. 28. Minnesota Statutes 1994, section 349A.01, is 24.2 amended by adding a subdivision to read: 24.3 Subd. 2a. [COMMISSIONER.] "Commissioner" is the 24.4 commissioner of the department of gambling. 24.5 Sec. 29. Minnesota Statutes 1994, section 349A.02, 24.6 subdivision 1, is amended to read: 24.7 Subdivision 1. [DIRECTOR.] A state lottery is established 24.8 under the supervision and control of the director of the state 24.9 lottery appointed by the governor with the advice and consent of 24.10 the senate.The governor shall appoint the director from a list24.11of at least three persons recommended to the governor by the24.12board.The director must be qualified by experience and 24.13 training to supervise the lottery. The director serves in the 24.14 unclassified service. The annual salary rate authorized for the 24.15 director is equal to 80 percent of the salary rate prescribed 24.16 for the governor as of the effective date of Laws 1993, chapter 24.17 146. 24.18 Sec. 30. Minnesota Statutes 1994, section 349A.02, 24.19 subdivision 8, is amended to read: 24.20 Subd. 8. [ATTORNEY GENERAL.] The attorney general is the 24.21 attorney for theboardcommissioner. 24.22 Sec. 31. Minnesota Statutes 1994, section 349A.03, 24.23 subdivision 2, is amended to read: 24.24 Subd. 2. [BOARDCOMMISSIONER DUTIES.] Theboard24.25 commissioner has the following duties: 24.26 (1) to advise the director on all aspects of the lottery; 24.27 (2) to review and comment on rules and game procedures 24.28 adopted by the director; 24.29 (3) review and comment on lottery procurement contracts; 24.30 (4) review and comment on agreements between the director 24.31 and one or more other lotteries relating to a joint lottery; and 24.32 (5) to review and comment on advertising promulgated by the 24.33 director at least quarterly to ensure that all advertising is 24.34 consistent with the dignity of the state and with section 24.35 349A.09. 24.36 Sec. 32. Minnesota Statutes 1994, section 349A.04, is 25.1 amended to read: 25.2 349A.04 [LOTTERY GAME PROCEDURES.] 25.3 The director may adopt game procedures governing the 25.4 following elements of the lottery: 25.5 (1) lottery games; 25.6 (2) ticket prices; 25.7 (3) number and size of prizes; 25.8 (4) methods of selecting winning tickets; and 25.9 (5) frequency and method of drawings. 25.10 The adoption of lottery game procedures is not subject to 25.11 chapter 14. Before adopting a lottery game procedure, the 25.12 director shall submit the procedure to theboardcommissioner 25.13 foritsreview and comment. 25.14 Sec. 33. Minnesota Statutes 1994, section 349A.05, is 25.15 amended to read: 25.16 349A.05 [RULES.] 25.17 The director may adopt rules, including emergency rules, 25.18 under chapter 14 governing the following elements of the lottery: 25.19 (1) the number and types of lottery retailers' locations; 25.20 (2) qualifications of lottery retailers and application 25.21 procedures for lottery retailer contracts; 25.22 (3) investigation of lottery retailer applicants; 25.23 (4) appeal procedures for denial, suspension, or 25.24 cancellation of lottery retailer contracts; 25.25 (5) compensation of lottery retailers; 25.26 (6) accounting for and deposit of lottery revenues by 25.27 lottery retailers; 25.28 (7) procedures for issuing lottery procurement contracts 25.29 and for the investigation of bidders on those contracts; 25.30 (8) payment of prizes; 25.31 (9) procedures needed to ensure the integrity and security 25.32 of the lottery; and 25.33 (10) other rules the director considers necessary for the 25.34 efficient operation and administration of the lottery. 25.35 Before adopting a rule the director shall submit the rule 25.36 to theboardcommissioner foritsreview and comment. 26.1 Sec. 34. Minnesota Statutes 1994, section 349A.06, 26.2 subdivision 2, is amended to read: 26.3 Subd. 2. [QUALIFICATIONS.] (a) The director may not 26.4 contract with a retailer who: 26.5 (1) is under the age of 18; 26.6 (2) is in business solely as a seller of lottery tickets; 26.7 (3) owes $500 or more in delinquent taxes as defined in 26.8 section 270.72; 26.9 (4) has been convicted within the previous five years of a 26.10 felony or gross misdemeanor, any crime involving fraud or 26.11 misrepresentation, or a gambling-related offense; 26.12 (5) is a member of the immediate family, residing in the 26.13 same household, as the director, board member,or any employee 26.14 of the lottery; 26.15 (6) in the director's judgment does not have the financial 26.16 stability or responsibility to act as a lottery retailer, or 26.17 whose contracting as a lottery retailer would adversely affect 26.18 the public health, welfare, and safety, or endanger the security 26.19 and integrity of the lottery; or 26.20 (7) is a currency exchange, as defined in section 53A.01. 26.21 A contract entered into before August 1, 1990, which 26.22 violates clause (7) may continue in effect until its expiration 26.23 but may not be renewed. 26.24 (b) An organization, firm, partnership, or corporation that 26.25 has a stockholder who owns more than five percent of the 26.26 business or the stock of the corporation, an officer, or 26.27 director, that does not meet the requirements of paragraph (a), 26.28 clause (4), is not eligible to be a lottery retailer under this 26.29 section. 26.30 (c) The restrictions under paragraph (a), clause (4), do 26.31 not apply to an organization, partnership, or corporation if the 26.32 director determines that the organization, partnership, or firm 26.33 has terminated its relationship with the individual whose 26.34 actions directly contributed to the disqualification under this 26.35 subdivision. 26.36 Sec. 35. Minnesota Statutes 1994, section 349A.08, 27.1 subdivision 7, is amended to read: 27.2 Subd. 7. [PAYMENTS PROHIBITED.] (a) No prize may be paid 27.3 toa member of the boardthe commissioner, the director or an 27.4 employee of the lottery, or a member of their families residing 27.5 in the same household of themembercommissioner, director, or 27.6 employee. No prize may be paid to an officer or employee of a 27.7 vendor which at the time the game or drawing was being conducted 27.8 was involved with providing goods or services to the lottery 27.9 under a lottery procurement contract. 27.10 (b) No prize may be paid for a stolen, altered, or 27.11 fraudulent ticket. 27.12 Sec. 36. Minnesota Statutes 1994, section 349A.11, is 27.13 amended to read: 27.14 349A.11 [CONFLICT OF INTEREST.] 27.15 (a) The director,a board memberthe commissioner, an 27.16 employee of the lottery, a member of the immediate family of the 27.17 director,board membercommissioner, or employee residing in the 27.18 same household may not: 27.19 (1) purchase a lottery ticket; 27.20 (2) have any personal pecuniary interest in any vendor 27.21 holding a lottery procurement contract, or in any lottery 27.22 retailer; or 27.23 (3) receive any gift, gratuity, or other thing of value, 27.24 excluding food or beverage, from any lottery vendor or lottery 27.25 retailer, or person applying to be a retailer or vendor, in 27.26 excess of $100 in any calendar year. 27.27 (b) A violation of paragraph (a), clause (1), is a 27.28 misdemeanor. A violation of paragraph (a), clause (2), is a 27.29 gross misdemeanor. A violation of paragraph (a), clause (3), is 27.30 a misdemeanor unless the gift, gratuity, or other item of value 27.31 received has a value in excess of $500, in which case a 27.32 violation is a gross misdemeanor. 27.33 (c) The director or an unclassified employee of the lottery 27.34 may not, within one year of terminating employment with the 27.35 lottery, accept employment with, act as an agent or attorney 27.36 for, or otherwise represent any person, corporation, or entity 28.1 that had any lottery procurement contract or bid for a lottery 28.2 procurement contract with the lottery within a period of two 28.3 years prior to the termination of their employment. A violation 28.4 of this paragraph is a misdemeanor. 28.5 Sec. 37. Minnesota Statutes 1994, section 349A.12, 28.6 subdivision 4, is amended to read: 28.7 Subd. 4. [LOTTERY RETAILERS AND VENDORS.] A person who is 28.8 a lottery retailer, or is applying to be a lottery retailer, a 28.9 person applying for a contract with the director, or a person 28.10 under contract with the director to supply goods or services to 28.11 lottery may not pay, give, or make any economic opportunity, 28.12 gift, loan, gratuity, special discount, favor, hospitality, or 28.13 service, excluding food or beverage, having an aggregate value 28.14 of over $100 in any calendar year to the director,board member28.15 commissioner, employee of the lottery, or to a member of the 28.16 immediate family residing in the same household as that person. 28.17 Sec. 38. [DIVISION DIRECTORS.] 28.18 The directors of the gambling control board and division of 28.19 gambling enforcement of the department of public safety on the 28.20 effective date of this act continue in the positions of 28.21 directors of those divisions in the department of gambling in 28.22 the classified service. 28.23 Sec. 39. [REVISOR INSTRUCTION.] 28.24 (a) The revisor of statutes shall make the following 28.25 changes in Minnesota Statutes, as well as similar changes 28.26 elsewhere in Minnesota Statutes and Minnesota Rules to conform 28.27 to the legislative intent as expressed in this act: 28.28 (1) "board," "board's," or similar terms in Minnesota 28.29 Statutes, sections 349.12, subdivision 3; and 349.163, 28.30 subdivision 4, when referring to the gambling control board to 28.31 "division," "division's," or similar terms; and 28.32 (2) "board," "board's," or similar terms when referring to 28.33 the gambling control board to "commissioner," "commissioner's," 28.34 or similar terms in sections 349.12, subdivisions 3a, 4, and 25; 28.35 349.151, subdivisions 2, 4, 4a, 4b, 5, 7, and 9 to 13; 349.152, 28.36 subdivisions 2 and 3; 349.154; 349.155, subdivisions 1, 2, 3, 29.1 and 5 to 8; 349.16; 349.161, subdivisions 2 and 8; 349.162, 29.2 subdivisions 1 and 5; 349.163, subdivisions 1, 5, 6a, and 7; 29.3 349.164, subdivision 2; 349.1641; 349.165, subdivisions 1 and 3; 29.4 349.166; 349.167; 349.168; 349.169; 349.17; 349.172; 349.18, 29.5 subdivisions 1a and 2; 349.19, subdivisions 1 to 5 and 7 to 11; 29.6 349.191; and 349.211, subdivision 3. 29.7 (b) The revisor of statutes shall recodify Minnesota 29.8 Statutes, chapter 299L, and Minnesota Statutes, sections 349.11 29.9 to 349.23 as part of Minnesota Statutes, chapter 349B. 29.10 Sec. 40. [REPEALER.] 29.11 Minnesota Statutes 1994, sections 349.12, subdivision 6; 29.12 349.152, subdivision 4; and 349A.01, subdivision 2, are repealed. 29.13 Sec. 41. [EFFECTIVE DATE.] 29.14 This act is effective July 1, 1995.