HF 2010

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; providing for certain gambling 
  1.3             activities at a class A licensed racetrack facility; 
  1.4             amending Minnesota Statutes 2002 sections 240.07, 
  1.5             subdivision 3; 240.35, subdivision 1; 299L.07, 
  1.6             subdivisions 2, 2a; 340A.410, subdivision 5; 541.20; 
  1.7             541.21; proposing coding for new law in Minnesota 
  1.8             Statutes, chapter 240. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 2002, section 240.07, 
  1.11  subdivision 3, is amended to read: 
  1.12     Subd. 3.  [LICENSE ISSUANCE.] (a) If after considering the 
  1.13  information received from the hearing and investigations, the 
  1.14  commission determines that the applicant will conduct horse 
  1.15  racing in accordance with all applicable laws and rules, will 
  1.16  not adversely affect the public health, welfare, and safety, 
  1.17  that the license will not create a competitive situation that 
  1.18  will adversely affect racing and the public interest and that 
  1.19  the applicant is fit to sponsor and manage racing, the 
  1.20  commission may issue a class B license.  
  1.21     (b) If the commission determines that the licensee will 
  1.22  operate a card club in accordance with all applicable law and 
  1.23  rules and the applicant's approved plan of operation under 
  1.24  section 240.30, subdivision 6, that the operation of a card club 
  1.25  by the licensee will not adversely affect the public health, 
  1.26  welfare, and safety, and that the licensee is fit to operate a 
  1.27  card club, the commission may include with the class B license 
  2.1   an authorization to conduct a card club at the licensee's class 
  2.2   A racetrack as provided in section 240.30.  The commission may 
  2.3   give an interim authorization for the operation of a card club 
  2.4   that is effective until the expiration of the licensee's class B 
  2.5   license and may charge for the interim authorization a 
  2.6   proportionate amount of the additional class B license fee under 
  2.7   section 240.10. 
  2.8      (c) If the commission determines that the licensee will 
  2.9   operate additional gambling activities under section 240.31 in 
  2.10  accordance with all applicable law and rules and the applicant's 
  2.11  approved plan of operation, that the operation of the activity 
  2.12  will not adversely affect the public health, welfare, safety, 
  2.13  and that the licensee is fit to operate the activity, the 
  2.14  commission may include with the class B license an authorization 
  2.15  to conduct additional gambling activities at the licensee's 
  2.16  class A racetrack as provided in section 240.31.  The commission 
  2.17  may give an interim authorization for the operation of the 
  2.18  activity that is effective until the expiration of the 
  2.19  licensee's class B license and may charge for the interim 
  2.20  authorization a proportionate amount of the additional class B 
  2.21  license fee under section 240.10. 
  2.22     (d) The license is for a period of one year. 
  2.23     Sec. 2.  [240.31] [OTHER GAMES.] 
  2.24     Subdivision 1.  [AUTHORIZATION.] The commission may 
  2.25  authorize a class B operator of a class A racetrack, which is 
  2.26  specifically authorized to conduct gambling activities in 
  2.27  addition to pari-mutuel horse race wagering and is located 
  2.28  within ten miles of an Indian gaming casino, to conduct the same 
  2.29  type of gambling activities that the Indian gaming casino is 
  2.30  authorized, by compact or law, to conduct.  The procedures set 
  2.31  forth in section 240.30 for application, authorization, and 
  2.32  approval of operational plans shall apply to any additional 
  2.33  gambling activities authorized under this subdivision. 
  2.34     Subd. 2.  [PURSES.] From the sum of all money received by 
  2.35  the licensee for gambling activities authorized under 
  2.36  subdivision 1, less the amount paid out in prizes and winnings, 
  3.1   the licensee must set aside an amount equal to but not less than 
  3.2   eight percent for purses for live horse races conducted by the 
  3.3   licensee.  Purse payments made pursuant to this subdivision are 
  3.4   in addition to purse payments otherwise established by law or 
  3.5   contract.  Twenty percent of the money set aside for purses 
  3.6   pursuant to this subdivision shall be transferred to the 
  3.7   commission and used for the purposes set forth in section 
  3.8   240.18, subdivisions 2, paragraph (d), and 3, paragraph (b), 
  3.9   subject to the proportionality requirement in section 240.18, 
  3.10  subdivision 1.  The licensee and the horseperson's organization 
  3.11  representing the majority of horsepersons who have raced at the 
  3.12  racetrack during the preceding 12 months may negotiate 
  3.13  percentages different from those stated in this section if the 
  3.14  agreement is in writing and filed with the racing commission. 
  3.15     Subd. 3.  [REIMBURSEMENT TO COMMISSION.] The commission 
  3.16  shall require that the licensee reimburse it for the 
  3.17  commission's actual costs, of regulating any additional gambling 
  3.18  activities under this section.  Amounts received under this 
  3.19  subdivision must be deposited as provided in section 240.155, 
  3.20  subdivision 1. 
  3.21     Subd. 4.  [REPORTING.] The class B licensee shall report 
  3.22  all income generated by the additional gambling activities in an 
  3.23  annual report to the racing commission.  The report shall also 
  3.24  account for all costs of operation, taxes paid, amounts paid to 
  3.25  the breeder's fund, and net profits to the class B licensee. 
  3.26     Subd. 5.  [FEE.] The licensee must pay a gambling 
  3.27  activities fee equal to .. percent of all money received by the 
  3.28  licensee from gambling activities authorized under this section, 
  3.29  less the amount paid out in prizes and winnings.  The licensee 
  3.30  must pay this fee to the commission on a quarterly basis.  The 
  3.31  revenue collected by the commission for this fee must be 
  3.32  deposited in the state treasury and credited as follows: 
  3.33     (1) 2.5 percent is annually transferred to, to be divided 
  3.34  equally between, the city and the county where the racetrack is 
  3.35  located; 
  3.36     (2) .. percent is annually appropriated to the commissioner 
  4.1   of human services for the compulsive gambling treatment program 
  4.2   under section 245.98; and 
  4.3      (3) remainder to the general fund. 
  4.4      Sec. 3.  Minnesota Statutes 2002, section 240.35, 
  4.5   subdivision 1, is amended to read: 
  4.6      Subdivision 1.  [GENERALLY.] A licensee of the commission 
  4.7   may detain a person if the licensee has probable cause to 
  4.8   believe that the person detained has violated section 609.76 
  4.9   while at a card club authorized by section 240.30, or 
  4.10  participating in gambling activities authorized by section 
  4.11  240.31.  For purposes of this section, "licensee" means the 
  4.12  commission's director of racing security or a security officer 
  4.13  licensed under Minnesota Rules, chapter 7878. 
  4.14     Sec. 4.  Minnesota Statutes 2002, section 299L.07, 
  4.15  subdivision 2, is amended to read: 
  4.16     Subd. 2.  [EXCLUSIONS.] Notwithstanding subdivision 1, a 
  4.17  gambling device: 
  4.18     (1) may be sold by a person who is not licensed under this 
  4.19  section, if the person (i) is not engaged in the trade or 
  4.20  business of selling gambling devices, and (ii) does not sell 
  4.21  more than one gambling device in any calendar year; 
  4.22     (2) may be sold by the governing body of a federally 
  4.23  recognized Indian tribe described in subdivision 2a, paragraph 
  4.24  (b), clause (1), which is not licensed under this section, if 
  4.25  (i) the gambling device was operated by the Indian tribe, (ii) 
  4.26  the sale is to a distributor licensed under this section, and 
  4.27  (iii) the licensed distributor notifies the commissioner of the 
  4.28  purchase, in the same manner as is required when the licensed 
  4.29  distributor ships a gambling device into Minnesota; 
  4.30     (3) may be possessed by a person not licensed under this 
  4.31  section if the person holds a permit issued under section 
  4.32  299L.08; and 
  4.33     (4) may be possessed by a state agency, with the written 
  4.34  authorization of the director, for display or evaluation 
  4.35  purposes only and not for the conduct of gambling; and 
  4.36     (5) may be possessed by a licensee authorized to conduct 
  5.1   gambling activities pursuant to section 240.31, subdivision 1. 
  5.2      Sec. 5.  Minnesota Statutes 2002, section 299L.07, 
  5.3   subdivision 2a, is amended to read: 
  5.4      Subd. 2a.  [RESTRICTIONS.] (a) A manufacturer licensed 
  5.5   under this section may sell, offer to sell, lease, or rent, in 
  5.6   whole or in part, a gambling device only to a distributor 
  5.7   licensed under this section or to a licensee authorized to 
  5.8   conduct gambling activities pursuant to section 240.31, 
  5.9   subdivision 1. 
  5.10     (b) A distributor licensed under this section may sell, 
  5.11  offer to sell, market, rent, lease, or otherwise provide, in 
  5.12  whole or in part, a gambling device only to: 
  5.13     (1) the governing body of a federally recognized Indian 
  5.14  tribe that is authorized to operate the gambling device under a 
  5.15  tribal state compact under the Indian Gaming Regulatory Act, 
  5.16  Public Law 100-497, and future amendments to it; 
  5.17     (2) a person for use in the person's dwelling for display 
  5.18  or amusement purposes in a manner that does not afford players 
  5.19  an opportunity to obtain anything of value; 
  5.20     (3) another distributor licensed under this section; or 
  5.21     (4) a person in another state who is authorized under the 
  5.22  laws of that state to possess the gambling device; or 
  5.23     (5) to a licensee authorized to conduct gambling activities 
  5.24  pursuant to section 240.31, subdivision 1. 
  5.25     Sec. 6.  Minnesota Statutes 2002, section 340A.410, 
  5.26  subdivision 5, is amended to read: 
  5.27     Subd. 5.  [GAMBLING PROHIBITED.] (a) Except as otherwise 
  5.28  provided in this subdivision, no retail establishment licensed 
  5.29  to sell alcoholic beverages may keep, possess, or operate, or 
  5.30  permit the keeping, possession, or operation on the licensed 
  5.31  premises of dice or any gambling device as defined in section 
  5.32  349.30, or permit gambling therein.  
  5.33     (b) Gambling equipment may be kept or operated and raffles 
  5.34  conducted on licensed premises and adjoining rooms when the use 
  5.35  of the gambling equipment is authorized by (1) chapter 349, (2) 
  5.36  a tribal ordinance in conformity with the Indian Gaming 
  6.1   Regulatory Act, Public Law 100-497, or (3) a tribal-state 
  6.2   compact authorized under section 3.9221. 
  6.3      (c) Lottery tickets may be purchased and sold within the 
  6.4   licensed premises as authorized by the director of the lottery 
  6.5   under chapter 349A.  
  6.6      (d) Dice may be kept and used on licensed premises and 
  6.7   adjoining rooms as authorized by section 609.761, subdivision 4. 
  6.8      (e) Gambling devices may be operated on the premises of a 
  6.9   licensed racetrack as authorized by section 240.31, subdivision 
  6.10  1. 
  6.11     Sec. 7.  Minnesota Statutes 2002, section 541.20, is 
  6.12  amended to read: 
  6.13     541.20 [RECOVERY OF MONEY LOST.] 
  6.14     Every person who, by playing at cards, dice, or other game, 
  6.15  or by betting on the hands or sides of such as are gambling, 
  6.16  shall lose to any person so playing or betting any sum of money 
  6.17  or any goods, and pays or delivers the same, or any part 
  6.18  thereof, to the winner, may sue for and recover such money by a 
  6.19  civil action, before any court of competent jurisdiction.  For 
  6.20  purposes of this section, gambling shall not include pari-mutuel 
  6.21  or other wagering activity conducted under a license issued 
  6.22  pursuant to chapter 240, purchase or sale of tickets in the 
  6.23  state lottery, or gambling authorized under chapters 349 and 
  6.24  349A. 
  6.25     Sec. 8.  Minnesota Statutes 2002, section 541.21, is 
  6.26  amended to read: 
  6.27     541.21 [COMMITMENTS FOR GAMBLING DEBT VOID.] 
  6.28     Every note, bill, bond, mortgage, or other security or 
  6.29  conveyance in which the whole or any part of the consideration 
  6.30  shall be for any money or goods won by gambling or playing at 
  6.31  cards, dice, or any other game whatever, or by betting on the 
  6.32  sides or hands of any person gambling, or for reimbursing or 
  6.33  repaying any money knowingly lent or advanced at the time and 
  6.34  place of such gambling or betting, or lent and advanced for any 
  6.35  gambling or betting to any persons so gambling or betting, shall 
  6.36  be void and of no effect as between the parties to the same, and 
  7.1   as to all persons except such as hold or claim under them in 
  7.2   good faith, without notice of the illegality of the 
  7.3   consideration of such contract or conveyance.  The provisions of 
  7.4   this section shall not apply to:  (1) pari-mutuel or other 
  7.5   wagering activity conducted under a license issued pursuant to 
  7.6   chapter 240; (2) purchase of tickets in the state lottery under 
  7.7   chapter 349A; (3) gaming activities conducted pursuant to the 
  7.8   Indian Gaming Regulatory Act, 25 U.S.C. 2701 et seq.; or (4) 
  7.9   lawful gambling activities permitted under chapter 349.