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HF 2785

as introduced - 87th Legislature (2011 - 2012) Posted on 03/12/2012 01:53pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to gambling; authorizing the director of the State Lottery to establish
gaming machines at a licensed racetrack; imposing a fee on gaming machine
revenue; providing powers and duties to the director; dedicating money for
education; amending Minnesota Statutes 2010, sections 240.03; 240.13, by
adding a subdivision; 240.14, by adding a subdivision; 240.28, subdivision 2;
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; repealing Minnesota Statutes 2010,
section 240.30, subdivision 8.

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

ARTICLE 1

RACINO

Section 1.

Minnesota Statutes 2010, section 240.03, is amended to read:


240.03 COMMISSION POWERS AND DUTIES.

The commission has the following powers and duties:

(1) to regulate horse racing in Minnesota to ensure that it is conducted in the public
interest;

(2) to issue licenses as provided in this chapter;

(3) to enforce all laws and rules governing horse racing;

(4) to collect and distribute all taxes provided for in this chapter;

(5) to conduct necessary investigations and inquiries and compel the submission of
information, documents, and records it deems necessary to carry out its duties;

(6) to supervise the conduct of pari-mutuel betting on horse racing;

(7) to employ and supervise personnel under this chapter;

(8) to determine the number of racing days to be held in the state and at each
licensed racetrack;

(9) to take all necessary steps to ensure the integrity of racing in Minnesota; deleted text beginand
deleted text end

(10) to impose fees on the racing and card playing industries sufficient to recover the
operating costs of the commission with the approval of the legislature according to section
16A.1283. Notwithstanding section 16A.1283, when the legislature is not in session, the
commissioner of management and budget may grant interim approval for any new fees
or adjustments to existing fees that are not statutorily specified, until such time as the
legislature reconvenes and acts upon the new fees or adjustments. As part of its biennial
budget request, the commission must propose changes to its fees that will be sufficient to
recover the operating costs of the commissiondeleted text begin.deleted text endnew text begin; and
new text end

new text begin (11) to take all necessary steps to ensure the security of all activities in a class A
licensed racetrack. The duties and responsibilities of the commission include but are not
limited to licensing employees of a class A licensee and vendors to the class A licensee
involved in the conduct of gaming machines authorized by a location contract with the
director of the State Lottery under section 349A.17 and overall surveillance and security
of all conduct on all facilities of a licensed racetrack. The commission shall require that
a class A licensed racetrack reimburse it for the commission's actual costs, including
personnel costs, for conducting activities provided in this clause and amounts received
must be deposited as provided in section 240.155, subdivision 1. The commission shall
review procedures of the class A licensee to ensure compliance with section 240.13,
subdivision 5a.
new text end

Sec. 2.

Minnesota Statutes 2010, section 240.13, is amended by adding a subdivision
to read:


new text begin Subd. 5a. new text end

new text begin Equine industry improvement fund. new text end

new text begin (a) To compensate the horse
racing industry for the presence of lottery gaming machines at class A racing facilities, the
commission shall establish and maintain an equine industry improvement fund into which
the commission shall deposit the funds received pursuant to section 349A.17, subdivision
1. The commission shall routinely transfer 80 percent of the fund allocated for purse
supplements to a licensee conducting live racing for more than one breed of horse and
20 percent to a licensee conducting live racing for only one breed of horse and direct the
licensee to use the funds to supplement purses offered for live races. Purse supplements
required under this subdivision are in addition to purse payments otherwise established
by law or contract. The location contract holder and the organization representing the
majority of horsepersons racing at the location contract holder's racetrack may, by written
contract, agree to use a portion of the transferred funds for racing-related purposes other
than purse supplementation.
new text end

new text begin (b) The commission shall allocate 20 percent of the fund for breeder's fund purposes
and shall transmit that amount to the breeder's fund for the benefit of each breed racing
at a class A licensed facility hosting lottery gaming machines. Amounts transferred for
each breed shall be in the same proportions established, under this subdivision, for purse
supplements. Amounts transferred to a breeder's fund shall be used for the purposes
of section 240.18, subdivisions 2, paragraph (d), and 3, paragraph (b), subject to the
proportionality requirement in section 240.18, subdivision 1.
new text end

new text begin (c) Five percent of the fund shall be placed in an equine industry enhancement fund
established by the commission. The commission shall award grants from this account
designed to support and improve the nonracing equine industry including, but not limited
to, construction of facilities and trails, production of shows, and issues related to retired
horses.
new text end

Sec. 3.

Minnesota Statutes 2010, section 240.14, is amended by adding a subdivision
to read:


new text begin Subd. 5. new text end

new text begin Lottery contract holder; minimum racing days. new text end

new text begin Licensees holding
location contracts with the director of the lottery, who are authorized to conduct live racing
for more than one breed of horse, shall conduct thoroughbred and quarter horse racing.
In any year the licensee shall offer the equivalent of at least two quarter horse races for
each racing day granted to the licensee by the commission, however, the licensee and the
organization representing the majority of quarter horses owners licensed to race in the
state may agree to a different number of live races to be offered. Scheduling of quarter
horse races shall be as approved by the commission pursuant to section 240.03, clause (8).
Willful failure to offer the races required by this subdivision shall subject the licensee to
disciplinary action as deemed appropriate by the commission.
new text end

Sec. 4.

Minnesota Statutes 2010, section 240.28, subdivision 2, is amended to read:


Subd. 2.

Betting.

No member or employee of the commission may bet or cause a
bet to be made on a race at a licensed racetrack while serving on or being employed by
the commission. No person appointed or approved by the director as a steward may bet
or cause a bet to be made at a licensed racetrack during a racing meeting at which the
person is serving as a steward. The commission shall by rule prescribe such restrictions on
betting by its licensees as it deems necessary to protect the integrity of racing.new text begin For the
purposes of this subdivision, a play on a gaming machine authorized by the director of the
State Lottery at a licensed racetrack is deemed to be a bet.
new text end

Sec. 5.

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

new text begin Adjusted gross revenue from the operation of gaming machines authorized under
chapter 349A is exempt from the tax imposed under section 297A.62 and chapter 297E
and any other tax, license, permit, or assessment for conducting a gambling activity that is
not imposed by this section. The State Lottery must, on or before the 20th day of each
month, transmit to the commissioner an amount equal to the adjusted gross gaming
machine revenue from the operation of gaming machines, as defined in section 349A.01,
for the previous month multiplied by: (1) 25 percent of annual adjusted gross gaming
machine revenue generated by each person that has a location contract under section
349A.17, subdivision 1, up to $150,000,000; (2) 30 percent of annual adjusted gross
gaming machine revenue generated by each person that has a location contract under
section 349A.17, subdivision 1, between $150,000,000 and $200,000,000; and (3) 40
percent of annual adjusted gross gaming machine revenue generated by each person that
has a location contract under section 349A.17, subdivision 1, in excess of $200,000,000.
The commissioner shall deposit the money transmitted under this section in the state
treasury as provided in article 2.
new text end

Sec. 6.

Minnesota Statutes 2010, 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 beginanddeleted 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 gamblingdeleted text begin.deleted text endnew text begin; and
new text end

new text begin (5) may be possessed by the State Lottery or a person who has entered into a location
contract with the State Lottery as authorized under chapter 349A.
new text end

Sec. 7.

Minnesota Statutes 2010, 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 sectionnew text begin or to the State Lottery as authorized under chapter 349Anew 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 beginor
deleted text end

(4) a person in another state who is authorized under the laws of that state to possess
the gambling devicedeleted text begin.deleted text endnew 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 2010, 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) This subdivision does not apply to a licensed racetrack holding a location
contract as authorized by chapter 349A.
new text end

Sec. 9.

Minnesota Statutes 2010, section 349A.01, is amended by adding a subdivision
to read:


new text begin Subd. 1a. 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, other than promotional plays, less the amount paid out in prizes for gaming machine
games.
new text end

Sec. 10.

Minnesota Statutes 2010, section 349A.01, is amended by adding a
subdivision to read:


new text begin Subd. 6a. new text end

new text begin Gaming machine. new text end

new text begin "Gaming machine" means any electronic device
which, upon insertion of money, coin, token, voucher, electronic card, or other
consideration, allows the play of a game, authorized by the director, the outcome of which
is determined entirely or partly by chance. A gaming machine may award a player a prize
in the form of money, tokens, prize slips, or other authorized consideration.
new text end

Sec. 11.

Minnesota Statutes 2010, section 349A.01, is amended by adding a
subdivision to read:


new text begin Subd. 6b. 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 2010, section 349A.01, is amended by adding a
subdivision to read:


new text begin Subd. 6c. 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 2010, 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 begingaming machines, maintenance of gaming machines,
new text endcomputer hardware and software used to monitor sales of lottery ticketsnew 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. 14.

Minnesota Statutes 2010, 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
nine 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 compensationnew text begin and amounts transferred or retained by a racetrack under 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.

Sec. 15.

Minnesota Statutes 2010, 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 gamenew 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. 16.

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 who 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. Contracts entered into under this section are void if the racetrack: (1) has
not hosted at least 75 days of live racing, authorized by the Minnesota Racing Commission,
during the previous year, or (2) has not been approved, unless approval is pending, for at
least 75 days of live racing during the present year. In the case of licensees authorized to
conduct racing for only one breed of horse, the live racing requirement is 50 days.
new text end

new text begin (b) The director may cancel, suspend, or refuse to renew the location contract
if the person:
new text end

new text begin (1) fails to account for proceeds from the gaming machines;
new text end

new text begin (2) fails to remit funds to the director in accordance with the location contract;
new text end

new text begin (3) violates a law, rule, or order of the director;
new text end

new text begin (4) fails to comply with a material term of the location contract; or
new text end

new text begin (5) has acted in a manner prejudicial to the 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 is a contested
case under sections 14.57 to 14.69.
new text end

new text begin (c) Contracts entered into under this section must provide for compensation to the
racetrack and its horsepersons in recognition of goods, services, and facilities provided
expenses, risk factors, and losses. Compensation shall be in an amount equal to at least the
following percentages of adjusted gross gaming machine revenue generated at the track:
new text end

new text begin (1) of the first $150,000,000 of annual adjusted gross gaming machine revenue,
52.8 percent to the licensee and 7.2 percent to the Minnesota Racing Commission to be
deposited in the equine industry improvement fund established under section 240.13,
subdivision 5a;
new text end

new text begin (2) of annual adjusted gross gaming machine revenue between $150,000,000 and
$200,000,000, 48.4 percent to the licensee and 6.6 percent to the Minnesota Racing
Commission to be deposited in the equine industry improvement fund established under
section 240.13, subdivision 5a; and
new text end

new text begin (3) of annual adjusted gross gaming machine revenue in excess of $200,000,000,
39.6 percent to the licensee and 5.4 percent to the Minnesota Racing Commission to be
deposited in the equine industry improvement fund established under section 240.13,
subdivision 5a.
new text end

new text begin (d) A licensee must annually remit one percent of the compensation it receives
pursuant to this section to the city, and one percent to the county in which the licensee
conducts racing.
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 under
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, however, the financial
responsibility for all other activities related to the gaming facility including, but not
limited to, advertising, marketing, facility expenses, staffing, security, and surveillance,
shall be borne by the holder of the location contract.
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 and oversee the general security arrangements
associated with and relating to the operation of the gaming machines and implement
procedures as deemed appropriate.
new text end

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

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

new text begin Subd. 3. new text end

new text begin Specifications. new text end

new text begin Gaming machines must be capable of being linked
electronically to a central communications system to provide auditing program information
as required by the director.
new text end

new text begin Subd. 4. 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 provided in section 349A.04. Gaming machines may conduct
pari-mutuel wagering and display horse races under specifications provided by the director.
new text end

new text begin Subd. 5. new text end

new text begin Examination of machines. new text end

new text begin The director shall examine prototypes of
gaming machines and require that the manufacturer of the machine pay the cost of the
examination. The director may contract for the examination of gaming machines.
new text end

new text begin Subd. 6. new text end

new text begin Testing of machines. new text end

new text begin The director may require working models of a
gaming machine to be transported to the locations the director designates for testing,
examination, and analysis. The manufacturer shall pay all costs for testing, examination,
analysis, and transportation of the machine model.
new text end

new text begin Subd. 7. 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 the game. A person under 18 years of age may not claim a prize from the
operation of a gaming machine. A prize claimed from the play of a gaming machine game
is not subject to section 349A.08, subdivision 8.
new text end

new text begin Subd. 8. 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 a gaming machine.
new text end

new text begin (b) The director or any employee of the lottery, or a member of the 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. 9. new text end

new text begin Compulsive gambling notice. new text end

new text begin The director 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 director and the location provider shall
establish a responsible gambling plan in consultation with the National Council on
Problem Gambling or the Minnesota affiliate. 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 status of the responsible gambling plan.
new text end

new text begin Subd. 10. new text end

new text begin Local licenses. new text end

new text begin Except as provided in subdivision 1, paragraph (d),
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

Sec. 17.

Minnesota Statutes 2010, 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 conducted under a license issued pursuant to chapter 240, purchase
or sale of tickets in the state lottery, new text beginpurchase of gaming machine plays as authorized under
chapter 349A,
new text endor gambling authorized under chapters 349 and 349A.

Sec. 18.

Minnesota Statutes 2010, 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
wagering conducted under a license issued pursuant to chapter 240; (2) purchase of tickets
in the state lottery new text beginor other wagering authorized new text endunder chapter 349A; (3) gaming activities
conducted pursuant to the Indian Gaming Regulatory Act, United States Code, title 25,
section 2701 et seq.; or (4) lawful gambling activities permitted under chapter 349.

Sec. 19.

Minnesota Statutes 2010, 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; and

(8) the purchase and sale of state lottery tickets new text beginand activities conducted at a
licensed racetrack pursuant to a gaming machine location contract as authorized
new text endunder
chapter 349A.

Sec. 20.

Minnesota Statutes 2010, 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 349Anew text begin, or the manufacture, possession, sale, or operation of a gaming machine
under chapter 349A
new text end.

Sec. 21. new text beginLOTTERY BUDGET.
new text end

new text begin The director of the State Lottery shall submit a budget for the operation and control
of gaming machines to the commissioner of management and budget. Notwithstanding
Minnesota Statutes, section 349A.10, subdivision 6, the director of the State Lottery
may expend amounts necessary to operate and control the gaming machines. Amounts
expended by the director of the State Lottery for the operation and control of the gaming
machines in fiscal years 2013 and 2014 are not subject to the maximum amount set in law
for the operation of the lottery.
new text end

Sec. 22. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2010, section 240.30, subdivision 8, new text end new text begin is repealed.
new text end

ARTICLE 2

EDUCATION

Section 1. new text beginRACINO REVENUE.
new text end

new text begin Subdivision 1. new text end

new text begin Allocation. new text end

new text begin One percent of the revenue transmitted to the
commissioner under Minnesota Statutes, section 297A.651, must be deposited in a
compulsive gambling treatment and education account in the special revenue fund. The
remainder of the revenue must be deposited in a special account in the state treasury as
provided in subdivision 3.
new text end

new text begin Subd. 2. new text end

new text begin Compulsive gambling; appropriations. new text end

new text begin One-half of the money in
the compulsive gambling treatment and education account is annually appropriated to
the commissioner of human services for the compulsive gambling treatment program
established under Minnesota Statutes, section 245.98. One-half of the money in the
compulsive gambling treatment and education account is annually appropriated to the
Gambling Control Board for a grant to the state affiliate recognized by the National Council
on Problem Gambling to increase public awareness of problem gambling, education
and training for individuals and organizations providing effective treatment services to
problem gamblers and their families, and research relating to problem gambling.
new text end

new text begin Subd. 3. new text end

new text begin Education. new text end

new text begin A special account is established in the state treasury, consisting
of money deposited under Minnesota Statutes, section 297A.651, and any interest earned
thereon. Money in this account may not be spent unless appropriated by law and is
dedicated:
new text end

new text begin (1) to increase the aid payment schedule for school district aids and credits payments
in section 127A.45, to not more than 90 percent rounded to the nearest tenth of a percent
without exceeding the amount available and with any remaining funds deposited in the
budget reserve; and
new text end

new text begin (2) to restore all or a portion of the net aid reduction under section 127A.441, and to
reduce the property tax revenue recognition shift under section 123B.75, subdivision 5,
paragraph (a).
new text end

ARTICLE 3

MISCELLANEOUS

Section 1. new text beginSEVERABILITY; SAVINGS.
new text end

new text begin If any provision of this act is found to be invalid because it is in conflict with a
provision of the Minnesota Constitution 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 this act.
new text end

Sec. 2. new text beginEFFECTIVE DATE.
new text end

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