HF 2999

as introduced - 87th Legislature (2011 - 2012) Posted on 04/16/2012 10:53am

A bill for an act
relating to gambling; authorizing the negotiation of a new tribal-state compact;
authorizing new forms of gambling; amending Minnesota Statutes 2010, sections
3.9221; 240.01, subdivision 25; proposing coding for new law in Minnesota
Statutes, chapter 16A; repealing Minnesota Statutes 2010, section 240.30,
subdivisions 3, 8.

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

Section 1.

Minnesota Statutes 2010, section 3.9221, is amended to read:

3.9221 INDIAN TRIBES; COMPACTS TO BE NEGOTIATED.

Subdivision 1.

Definition.

For purposes of this section, "act" means the Indian
Gaming Regulatory Act, Public Law 100-497, and future amendments to it.

Subd. 2.

Negotiations authorized.

The governor or the governor's designated
representatives shall, pursuant to section 11 of the act, negotiate in good faith a tribal-state
compact regulating the conduct of class III gambling, as defined in section 4 of the act, on
Indian lands of a tribe requesting negotiations. The agreement may include any provision
authorized under section 11(d)(3)(C) of the act. The attorney general is the legal counsel
for the governor or the governor's representatives in regard to negotiating a compact under
this section. deleted text begin If the governor appoints designees to negotiate under this subdivision, deleted text end new text begin The
governor must appoint designees under this subdivision, and new text end the designees must include at
least two members of the senate and two members of the house of representatives, two of
whom must be the chairs of the senate and house of representatives standing committees
with jurisdiction over gambling policy new text begin and two of whom must be the chief house of
representatives and senate authors of any act initiating new negotiations new text end .

Subd. 3.

Time limits.

(a) In the case of negotiations undertaken pursuant to a
request for negotiations received before April 20, 1989, the authority granted under
subdivision 2 to negotiate with an Indian tribe expires 180 days after April 20, 1989.

(b) In the case of negotiations undertaken pursuant to a request for negotiations
received after April 20, 1989, the authority granted under subdivision 2 to negotiate with
an Indian tribe expires 180 days after receipt of the request by the governor.

new text begin (c) In the case of negotiations required under subdivision 6, the authority expires
365 days after the effective date of this section.
new text end

Subd. 4.

Terms of compact; rights of parties.

A compact agreed to on behalf of
the state under this section must contain:

(1) a provision recognizing the right of each party to the agreement, including the
legislature by joint resolution, to request that the agreement be renegotiated or replaced by
a new compact, and providing the terms under which either party, including the legislature,
can request a renegotiation or the negotiation of a new compact; deleted text begin and
deleted text end

(2) a provision that in the event of a request for a renegotiation or a new compact the
existing compact will remain in effect until renegotiated or replaced new text begin ; and
new text end

new text begin (3) adoption of a compact by one or more tribal governments sufficient to confer all
reasonable benefits of the compact on the adopting tribal government or governments,
including revenues from joint state-tribal casinos new text end .

Subd. 5.

Report.

The governor, the attorney general, and the governor's designated
representatives shall report to the house of representatives and senate committees having
jurisdiction over gambling regulation annually. This report shall contain information on
compacts negotiated, and an outline of prospective negotiations.

new text begin Subd. 6. new text end

new text begin Negotiations over new forms of gambling. new text end

new text begin The governor shall request
and conduct negotiations with each of the federally recognized tribal governments in
Minnesota to allow for new forms of gambling to be authorized at existing tribal casinos
and at licensed racetracks in existence when this act becomes effective. Any negotiated
compact shall require, at a minimum, the following components:
new text end

new text begin (1) authorization at existing tribal casinos of new games and forms of gambling,
with a minimum of new games to include roulette, simulcasting of horse racing, table
games involving cards, baccarat, chemin de fer, craps, and electronic poker tables;
new text end

new text begin (2) a negotiated sharing of revenues between the state (....... percent) and tribal
governments (....... percent) from such new games as are allowed in the new tribal
compacts;
new text end

new text begin (3) enforcement provisions sufficient to ensure the integrity of the conduct of
gaming under these new compacts;
new text end

new text begin (4) a requirement that simulcasting be conducted at each participating tribal casino,
with a minimum share of five percent of handle from simulcasting being allocated to
purses at existing class A racetracks, if such are in operation. Simulcasting shall be
conducted pursuant to an agreement with the class A licensees, and be consistent with
chapter 240 and the Interstate Horse Racing Act;
new text end

new text begin (5) authorization for the establishment of tribal-state casinos, which shall be allowed
to conduct all forms of compacted gambling, to be located at each class A licensee's
established racetrack in existence prior to the effective date of this act, pursuant to an
agreement between the licensees and the tribal governments, and inclusion of provisions
for an equitable sharing of revenues from those tribal-state casinos, as follows: .......
percent of net revenues to be shared among the tribal governments who are signatories to
the agreement, ....... percent of net revenues to be deposited in a special revenue fund, and
eight percent to be reserved for purses at existing race tracks;
new text end

new text begin (6) an agreement as to terms, conditions, and relative authorities retained by the state
or reserved to the tribal governments; and
new text end

new text begin (7) provisions for a fair and reasonable compensation to racetrack owners in the
form of ..... percent of net revenue.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment;
and subdivisions 3, paragraph (c), and 6, are repealed one year following final enactment.
new text end

Sec. 2.

new text begin [16A.727] PUBLIC INFRASTRUCTURE; SPECIAL REVENUE FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Fund creation. new text end

new text begin A compact special revenue fund is created with
revenues deposited from negotiated shares of gaming authorized under this act.
new text end

new text begin Subd. 2. new text end

new text begin Tax relief. new text end

new text begin Up to 25 percent of revenues from the compact special revenue
fund are reserved for tax relief for charitable gaming organizations licensed under chapter
349, including a reduction in bingo, raffle, and paddlewheel taxes to a five percent rate;
reduction in pull-tab and tipboard taxes to one percent; and combined receipts tax
reductions equal to 35 percent of existing rates, to be assessed on a site-by-site basis.
new text end

new text begin Subd. 3. new text end

new text begin Infrastructure. new text end

new text begin Up to 75 percent of revenues deposited in this account are
reserved for major public infrastructure projects to be appropriated by law.
new text end

Sec. 3.

Minnesota Statutes 2010, section 240.01, subdivision 25, is amended to read:

Subd. 25.

Card playing.

"Card playing" means an activity wherein individuals
deleted text begin compete and deleted text end wager with each other utilizing a 52-unit system comprised of a series of
numbers, numbered two through ten, and the letters J, Q, K, and A, combined with
four symbols commonly known as hearts, diamonds, spades, and clubs, wherein each
individual unit constitutes the display of one of the 52 possible combinations. The symbol
commonly known as a joker may be incorporated into the system.

Sec. 4. new text begin LEGISLATION.
new text end

new text begin The commissioner of administration shall be responsible for delivery of legislation
necessary to enact any statutory components of any compact agreement reached under
Minnesota Statutes, section 3.9221. Legislation must be provided in correct form within
90 days of the signing of a compact, and must contain all statutorily necessary elements of
the compact agreement. The legislature must ratify any compact.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5. new text begin PURSES; EQUINE INDUSTRY FUND.
new text end

new text begin (a) 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 Minnesota Statutes, section 240.18, subdivisions 2, paragraph (d), and 3, paragraph
(b), subject to the proportionality requirement in Minnesota Statutes, 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. 6. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2010, section 240.30, subdivisions 3 and 8, new text end new text begin are repealed.
new text end