SF 966

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to state lottery; authorizing the director of 
  1.3             the state lottery to establish a state-run gaming 
  1.4             facility; providing for revenue sharing among native 
  1.5             American governments and a city government; providing 
  1.6             duties and powers to the director of the state 
  1.7             lottery; imposing a tax on adjusted gross revenue of 
  1.8             the facility; providing for the use of gaming facility 
  1.9             revenues; authorizing issuance and sales of state 
  1.10            bonds; authorizing on-sale liquor license at the 
  1.11            facility; creating an advisory council; appropriating 
  1.12            money; amending Minnesota Statutes 2002, sections 
  1.13            16B.24, subdivision 9; 297A.62, subdivision 1, by 
  1.14            adding a subdivision; 297A.94; 299L.07, subdivisions 
  1.15            2, 2a; 349A.01, subdivision 8, by adding subdivisions; 
  1.16            349A.04; 349A.05; 349A.10, subdivisions 3, 5, by 
  1.17            adding a subdivision; 541.21; 609.75, subdivision 3; 
  1.18            609.761, subdivision 2; proposing coding for new law 
  1.19            in Minnesota Statutes, chapter 349A. 
  1.20  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.21     Section 1.  Minnesota Statutes 2002, section 16B.24, 
  1.22  subdivision 9, is amended to read: 
  1.23     Subd. 9.  [SMOKING IN STATE BUILDINGS.] (a) To protect the 
  1.24  public health, comfort, and environment and to protect the 
  1.25  nonsmoker's right to a smoke-free environment, smoking in all 
  1.26  buildings managed or leased by the commissioner under 
  1.27  subdivisions 1 and 6 is prohibited except in veterans homes and 
  1.28  a gaming facility operated under section 349A.20 where smoking 
  1.29  areas have been designated under a policy adopted in accordance 
  1.30  with paragraph (b). 
  1.31     (b) A veterans home and a gaming facility operated under 
  1.32  section 349A.20 may permit smoking only in designated areas, 
  2.1   providing that existing physical barriers and ventilation 
  2.2   systems can be used to prevent the presence of smoke in adjacent 
  2.3   nonsmoking areas. 
  2.4      No employee complaining of a violation of this subdivision 
  2.5   to a lessor, lessee, manager, or supervisor may be subjected to 
  2.6   any disciplinary action as a result of making the complaint. 
  2.7      Sec. 2.  Minnesota Statutes 2002, section 297A.62, 
  2.8   subdivision 1, is amended to read: 
  2.9      Subdivision 1.  [GENERALLY.] Except as otherwise provided 
  2.10  in subdivision 2 or, 3, or 4 or in this chapter, a sales tax of 
  2.11  6.5 percent is imposed on the gross receipts from retail sales 
  2.12  as defined in section 297A.61, subdivision 4, made in this state 
  2.13  or to a destination in this state by a person who is required to 
  2.14  have or voluntarily obtains a permit under section 297A.83, 
  2.15  subdivision 1.  
  2.16     Sec. 3.  Minnesota Statutes 2002, section 297A.62, is 
  2.17  amended by adding a subdivision to read:  
  2.18     Subd. 4.  [LOTTERY GAMING FACILITY.] A tax is imposed on 
  2.19  amounts wagered at a gaming facility operated under chapter 349A 
  2.20  at the rate of 35 percent of the adjusted gross revenue from the 
  2.21  gaming facility.  For the purposes of this subdivision, 
  2.22  "adjusted gross revenue" means the total amounts wagered at the 
  2.23  gaming facility and gross receipts derived from the sale of 
  2.24  chips or tokens for play at the gaming facility after the 
  2.25  deduction of prizes or winnings or redemption of chips or tokens 
  2.26  and before the deduction of any other expenses.  The 
  2.27  commissioner shall deposit the money transmitted under this 
  2.28  subdivision in the state treasury to be credited as provided in 
  2.29  section 297A.94. 
  2.30     Sec. 4.  Minnesota Statutes 2002, section 297A.94, is 
  2.31  amended to read: 
  2.32     297A.94 [DEPOSIT OF REVENUES.] 
  2.33     (a) Except as provided in this section, the commissioner 
  2.34  shall deposit the revenues, including interest and penalties, 
  2.35  derived from the taxes imposed by this chapter in the state 
  2.36  treasury and credit them to the general fund.  
  3.1      (b) The commissioner shall deposit taxes in the Minnesota 
  3.2   agricultural and economic account in the special revenue fund if:
  3.3      (1) the taxes are derived from sales and use of property 
  3.4   and services purchased for the construction and operation of an 
  3.5   agricultural resource project; and 
  3.6      (2) the purchase was made on or after the date on which a 
  3.7   conditional commitment was made for a loan guaranty for the 
  3.8   project under section 41A.04, subdivision 3. 
  3.9   The commissioner of finance shall certify to the commissioner 
  3.10  the date on which the project received the conditional 
  3.11  commitment.  The amount deposited in the loan guaranty account 
  3.12  must be reduced by any refunds and by the costs incurred by the 
  3.13  department of revenue to administer and enforce the assessment 
  3.14  and collection of the taxes.  
  3.15     (c) The commissioner shall deposit the revenues, including 
  3.16  interest and penalties, derived from the taxes imposed on sales 
  3.17  and purchases included in section 297A.61, subdivision 3, 
  3.18  paragraph (g), clauses (1) and (4), in the state treasury, and 
  3.19  credit them as follows: 
  3.20     (1) first to the general obligation special tax bond debt 
  3.21  service account in each fiscal year the amount required by 
  3.22  section 16A.661, subdivision 3, paragraph (b); and 
  3.23     (2) after the requirements of clause (1) have been met, the 
  3.24  balance to the general fund. 
  3.25     (d) The commissioner shall deposit the revenues, including 
  3.26  interest and penalties, collected under section 297A.64, 
  3.27  subdivision 5, in the state treasury and credit them to the 
  3.28  general fund.  By July 15 of each year the commissioner shall 
  3.29  transfer to the highway user tax distribution fund an amount 
  3.30  equal to the excess fees collected under section 297A.64, 
  3.31  subdivision 5, for the previous calendar year. 
  3.32     (e) For fiscal year 2001, 97 percent; for fiscal years 2002 
  3.33  and 2003, 87 percent; and for fiscal year 2004 and thereafter, 
  3.34  87.1 percent of the revenues, including interest and penalties, 
  3.35  transmitted to the commissioner under section 297A.65, must be 
  3.36  deposited by the commissioner in the state treasury as follows: 
  4.1      (1) 50 percent of the receipts must be deposited in the 
  4.2   heritage enhancement account in the game and fish fund, and may 
  4.3   be spent only on activities that improve, enhance, or protect 
  4.4   fish and wildlife resources, including conservation, 
  4.5   restoration, and enhancement of land, water, and other natural 
  4.6   resources of the state; 
  4.7      (2) 22.5 percent of the receipts must be deposited in the 
  4.8   natural resources fund, and may be spent only for state parks 
  4.9   and trails; 
  4.10     (3) 22.5 percent of the receipts must be deposited in the 
  4.11  natural resources fund, and may be spent only on metropolitan 
  4.12  park and trail grants; 
  4.13     (4) three percent of the receipts must be deposited in the 
  4.14  natural resources fund, and may be spent only on local trail 
  4.15  grants; and 
  4.16     (5) two percent of the receipts must be deposited in the 
  4.17  natural resources fund, and may be spent only for the Minnesota 
  4.18  zoological garden, the Como park zoo and conservatory, and the 
  4.19  Duluth zoo. 
  4.20     (f) The revenue dedicated under paragraph (e) may not be 
  4.21  used as a substitute for traditional sources of funding for the 
  4.22  purposes specified, but the dedicated revenue shall supplement 
  4.23  traditional sources of funding for those purposes.  Land 
  4.24  acquired with money deposited in the game and fish fund under 
  4.25  paragraph (e) must be open to public hunting and fishing during 
  4.26  the open season, except that in aquatic management areas or on 
  4.27  lands where angling easements have been acquired, fishing may be 
  4.28  prohibited during certain times of the year and hunting may be 
  4.29  prohibited.  At least 87 percent of the money deposited in the 
  4.30  game and fish fund for improvement, enhancement, or protection 
  4.31  of fish and wildlife resources under paragraph (e) must be 
  4.32  allocated for field operations. 
  4.33     (g) The commissioner must deposit revenues, including 
  4.34  interest and penalties, transmitted to the commissioner under 
  4.35  section 297A.62, subdivision 4, as follows: 
  4.36     (1) 60 percent of the receipts must be deposited in the 
  5.1   gaming facility proceeds fund and transferred to tribal 
  5.2   governments as provided in the agreement entered into under 
  5.3   section 349A.20, subdivision 2; 
  5.4      (2) 1.75 percent of the receipts must be deposited in the 
  5.5   gaming facility proceeds fund and is annually appropriated to 
  5.6   the department of children, families, and learning for the 
  5.7   Indian education program; 
  5.8      (3) 1.75 percent of the receipts must be deposited in the 
  5.9   gaming facility proceeds fund and is annually appropriated to 
  5.10  the department of human services to be used for programs and 
  5.11  services for American Indians living in urban areas of the 
  5.12  state; 
  5.13     (4) 1.75 percent of the receipts must be deposited in the 
  5.14  gaming facility proceeds fund and is annually appropriated to 
  5.15  the department of trade and economic development for a grant to 
  5.16  a nonprofit 501(c)(3) corporation which exists as of February 1, 
  5.17  2003, to provide loans and business education to American 
  5.18  Indians living in urban areas of the state; 
  5.19     (5) 2.5 percent of the receipts must be deposited in the 
  5.20  gaming facility proceeds fund and is annually transferred to the 
  5.21  city where the gaming facility is located; 
  5.22     (6) .275 percent of the receipts must be deposited in the 
  5.23  gaming facility proceeds fund and is annually appropriated to 
  5.24  the commissioner of economic security for grants to nonprofit 
  5.25  entities that provide for the promotion and development of 
  5.26  minority and American Indian business opportunities in urban 
  5.27  areas; 
  5.28     (7) .275 percent of the receipts must be deposited in the 
  5.29  gaming facility proceeds fund and is annually appropriated to 
  5.30  the commissioner of human services for the compulsive gambling 
  5.31  treatment program under section 245.98; and 
  5.32     (8) the remainder of the receipts shall be deposited in the 
  5.33  general fund. 
  5.34     Sec. 5.  Minnesota Statutes 2002, section 299L.07, 
  5.35  subdivision 2, is amended to read: 
  5.36     Subd. 2.  [EXCLUSIONS.] Notwithstanding subdivision 1, a 
  6.1   gambling device: 
  6.2      (1) may be sold by a person who is not licensed under this 
  6.3   section, if the person (i) is not engaged in the trade or 
  6.4   business of selling gambling devices, and (ii) does not sell 
  6.5   more than one gambling device in any calendar year; 
  6.6      (2) may be sold by the governing body of a federally 
  6.7   recognized Indian tribe described in subdivision 2a, paragraph 
  6.8   (b), clause (1), which is not licensed under this section, if 
  6.9   (i) the gambling device was operated by the Indian tribe, (ii) 
  6.10  the sale is to a distributor licensed under this section, and 
  6.11  (iii) the licensed distributor notifies the commissioner of the 
  6.12  purchase, in the same manner as is required when the licensed 
  6.13  distributor ships a gambling device into Minnesota; 
  6.14     (3) may be possessed by a person not licensed under this 
  6.15  section if the person holds a permit issued under section 
  6.16  299L.08; and 
  6.17     (4) may be possessed by a state agency, with the written 
  6.18  authorization of the director, for display or evaluation 
  6.19  purposes only and not for the conduct of gambling; and 
  6.20     (5) may be possessed by the state lottery for the conduct 
  6.21  of gambling at a gaming facility under chapter 349A. 
  6.22     Sec. 6.  Minnesota Statutes 2002, section 299L.07, 
  6.23  subdivision 2a, is amended to read: 
  6.24     Subd. 2a.  [RESTRICTIONS.] (a) A manufacturer licensed 
  6.25  under this section may sell, offer to sell, lease, or rent, in 
  6.26  whole or in part, a gambling device only to a distributor 
  6.27  licensed under this section or to the state lottery as 
  6.28  authorized under chapter 349A. 
  6.29     (b) A distributor licensed under this section may sell, 
  6.30  offer to sell, market, rent, lease, or otherwise provide, in 
  6.31  whole or in part, a gambling device only to: 
  6.32     (1) the governing body of a federally recognized Indian 
  6.33  tribe that is authorized to operate the gambling device under a 
  6.34  tribal state compact under the Indian Gaming Regulatory Act, 
  6.35  Public Law Number 100-497, and future amendments to it; 
  6.36     (2) a person for use in the person's dwelling for display 
  7.1   or amusement purposes in a manner that does not afford players 
  7.2   an opportunity to obtain anything of value; 
  7.3      (3) another distributor licensed under this section; or 
  7.4      (4) a person in another state who is authorized under the 
  7.5   laws of that state to possess the gambling device; or 
  7.6      (5) the state lottery as authorized under chapter 349A.  
  7.7      Sec. 7.  Minnesota Statutes 2002, section 349A.01, 
  7.8   subdivision 8, is amended to read: 
  7.9      Subd. 8.  [GROSS REVENUE.] "Gross revenue" means gross 
  7.10  receipts from the sale of lottery tickets, fees, or other money 
  7.11  received by the director, and interest earned on money in the 
  7.12  lottery fund.  Gross revenue does not include money received 
  7.13  from the operation of a gaming facility under section 349A.20 
  7.14  and interest earned on money received from the operation of the 
  7.15  gaming facility. 
  7.16     Sec. 8.  Minnesota Statutes 2002, section 349A.01, is 
  7.17  amended by adding a subdivision to read:  
  7.18     Subd. 8a.  [ADJUSTED GROSS GAMING FACILITY 
  7.19  REVENUE.] "Adjusted gross gaming facility revenue" means the 
  7.20  total amounts wagered at the gaming facility and gross receipts 
  7.21  derived from the sale of chips or tokens for play at the gaming 
  7.22  facility after the deduction of prizes or winnings or redemption 
  7.23  of chips or tokens but before the deduction of any other 
  7.24  expenses, and gross receipts from the operation of ancillary 
  7.25  services at the gaming facility. 
  7.26     Sec. 9.  Minnesota Statutes 2002, section 349A.01, is 
  7.27  amended by adding a subdivision to read: 
  7.28     Subd. 14.  [GAMING FACILITY.] "Gaming facility" means the 
  7.29  operation of the gaming facility under section 349A.20 and other 
  7.30  ancillary services conducted at the facility. 
  7.31     Sec. 10.  Minnesota Statutes 2002, section 349A.04, is 
  7.32  amended to read: 
  7.33     349A.04 [LOTTERY GAME PROCEDURES.] 
  7.34     The director may adopt game procedures governing the 
  7.35  following elements of the lottery and the gaming facility: 
  7.36     (1) lottery games; 
  8.1      (2) ticket prices; 
  8.2      (3) number and size of prizes; 
  8.3      (4) methods of selecting winning tickets; and 
  8.4      (5) frequency and method of drawings; and 
  8.5      (6) gaming facility games, including payment of prizes for 
  8.6   the games. 
  8.7      The adoption of lottery game procedures is not subject to 
  8.8   chapter 14.  
  8.9      Sec. 11.  Minnesota Statutes 2002, section 349A.05, is 
  8.10  amended to read: 
  8.11     349A.05 [RULES.] 
  8.12     The director may adopt rules under chapter 14 governing the 
  8.13  following elements of the lottery or gaming facility: 
  8.14     (1) the number and types of lottery retailers' locations; 
  8.15     (2) qualifications of lottery retailers and application 
  8.16  procedures for lottery retailer contracts; 
  8.17     (3) investigation of lottery retailer applicants; 
  8.18     (4) appeal procedures for denial, suspension, or 
  8.19  cancellation of lottery retailer contracts; 
  8.20     (5) compensation of lottery retailers; 
  8.21     (6) accounting for and deposit of lottery revenues by 
  8.22  lottery retailers; 
  8.23     (7) procedures for issuing lottery procurement contracts 
  8.24  and for the investigation of bidders on those contracts; 
  8.25     (8) payment of lottery prizes; 
  8.26     (9) procedures needed to ensure the integrity and security 
  8.27  of the lottery and gaming facility; and 
  8.28     (10) other rules the director considers necessary for the 
  8.29  efficient operation and administration of the lottery and the 
  8.30  gaming facility.  
  8.31     Sec. 12.  Minnesota Statutes 2002, section 349A.10, 
  8.32  subdivision 3, is amended to read: 
  8.33     Subd. 3.  [LOTTERY OPERATIONS.] (a) The director shall 
  8.34  establish a lottery operations account in the lottery fund.  The 
  8.35  director shall pay all costs of operating the lottery, including 
  8.36  payroll costs or amounts transferred to the state treasury for 
  9.1   payroll costs, but not including lottery prizes, from the 
  9.2   lottery operating account.  The director shall credit to the 
  9.3   lottery operations account amounts sufficient to pay the 
  9.4   operating costs of the lottery.  This provision does not apply 
  9.5   to operating costs of the gaming facility under section 349A.20. 
  9.6      (b) Except as provided in paragraph (e), the director may 
  9.7   not credit in any fiscal year thereafter amounts to the lottery 
  9.8   operations account which when totaled exceed 15 percent of gross 
  9.9   revenue to the lottery fund in that fiscal year.  In computing 
  9.10  total amounts credited to the lottery operations account under 
  9.11  this paragraph the director shall disregard amounts transferred 
  9.12  to or retained by lottery retailers as sales commissions or 
  9.13  other compensation. 
  9.14     (c) The director of the lottery may not expend after July 
  9.15  1, 1991, more than 2-3/4 percent of gross revenues in a fiscal 
  9.16  year for contracts for the preparation, publication, and 
  9.17  placement of advertising.  This provision does not apply to the 
  9.18  gaming facility operated under section 349A.20.  
  9.19     (d) Except as the director determines, the lottery is not 
  9.20  subject to chapter 16A relating to budgeting, payroll, and the 
  9.21  purchase of goods and services. 
  9.22     (e) In addition to the amounts credited to the lottery 
  9.23  operations account under paragraph (b), the director is 
  9.24  authorized, if necessary, to meet the current obligations of the 
  9.25  lottery and to credit up to 25 percent of an amount equal to the 
  9.26  average annual amount which was authorized to be credited to the 
  9.27  lottery operations account for the previous three fiscal years 
  9.28  but was not needed to meet the obligations of the lottery. 
  9.29     Sec. 13.  Minnesota Statutes 2002, section 349A.10, 
  9.30  subdivision 5, is amended to read: 
  9.31     Subd. 5.  [DEPOSIT OF NET PROCEEDS.] (a) Within 30 days 
  9.32  after the end of each month, the director shall deposit in the 
  9.33  state treasury the net proceeds of the lottery, which is the 
  9.34  balance in the lottery fund after transfers to the lottery prize 
  9.35  fund and credits to the lottery operations account and the 
  9.36  gaming facility operations account.  Of the net proceeds, 40 
 10.1   percent must be credited to the Minnesota environment and 
 10.2   natural resources trust fund and the remainder from the 
 10.3   nongaming facility operations, must be credited to the general 
 10.4   fund.  
 10.5      (b) The remainder of the net proceeds from the operation of 
 10.6   the gaming facility must be credited as follows: 
 10.7      (1) 60 percent of the net proceeds must be deposited in the 
 10.8   gaming facility proceeds fund and transferred to tribal 
 10.9   governments as provided in the agreement entered into under 
 10.10  section 349A.20, subdivision 2; 
 10.11     (2) 1.75 percent of the net proceeds must be deposited in 
 10.12  the gaming facility proceeds fund and is annually appropriated 
 10.13  to the department of children, families, and learning, for the 
 10.14  Indian education program; 
 10.15     (3) 1.75 percent of the net proceeds must be deposited in 
 10.16  the gaming facility proceeds fund and is annually appropriated 
 10.17  to the department of human services to be used for programs and 
 10.18  services for American Indians living in urban areas of the 
 10.19  state; 
 10.20     (4) 1.75 percent of the net proceeds must be deposited in 
 10.21  the gaming facility proceeds fund and is annually appropriated 
 10.22  to the department of trade and economic development for a grant 
 10.23  to a nonprofit 501(c)(3) corporation which exists as of February 
 10.24  1, 2003, to provide loans and business education to American 
 10.25  Indians living in urban areas of the state; 
 10.26     (5) .275 percent of the net proceeds must be deposited in 
 10.27  the gaming facility proceeds fund and is annually appropriated 
 10.28  to the commissioner of economic security for grants to nonprofit 
 10.29  entities that provide for the promotion and development of 
 10.30  minority and American Indian business opportunities in urban 
 10.31  areas; 
 10.32     (6) .275 percent of the net proceeds must be deposited in 
 10.33  the gaming facility proceeds fund and is annually appropriated 
 10.34  to the commissioner of human services for the compulsive 
 10.35  gambling treatment program under section 245.98; and 
 10.36     (7) the remainder of the net proceeds shall be deposited in 
 11.1   the general fund. 
 11.2      (c) The gaming facility proceeds fund is established in the 
 11.3   state treasury.  The fund consists of money credited to the fund 
 11.4   under this subdivision and interest earned on the money in the 
 11.5   fund.  The commissioner of finance shall establish separate 
 11.6   accounts in the fund for the purposes provided in paragraph (b). 
 11.7      Sec. 14.  Minnesota Statutes 2002, section 349A.10, is 
 11.8   amended by adding a subdivision to read: 
 11.9      Subd. 8.  [GAMING FACILITY OPERATIONS.] (a) The director 
 11.10  shall establish a gaming facility operations account in the 
 11.11  lottery fund.  The director shall credit to the gaming facility 
 11.12  operations account amounts sufficient to pay the tax imposed 
 11.13  under section 297A.62, subdivision 4, operation expenditures, 
 11.14  capital costs and expenditures, facility occupancy expenditures, 
 11.15  and cost of prizes and winnings at the gaming facility.  The 
 11.16  director shall pay from the gaming facility operations account 
 11.17  all capital costs and expenditures, facility occupancy 
 11.18  expenditures, and operating costs of the gaming facility 
 11.19  established under section 349A.20, including payroll costs or 
 11.20  amounts transferred to the state treasury for payroll costs, 
 11.21  amounts paid out as prizes or winnings at the gaming facility, 
 11.22  and payment of the tax imposed under section 297.62, subdivision 
 11.23  4.  The director may fund from the gaming facility operations 
 11.24  account programs for research and education relating to, the 
 11.25  prevention of, and the treatment of problem gambling.  
 11.26     (b) The director may not credit in any fiscal year after 
 11.27  the gaming facility has been operating for a complete fiscal 
 11.28  year, amounts to the gaming facility operations account, 
 11.29  excluding the cost of prizes, winnings, and the tax imposed 
 11.30  under section 297.62, subdivision 4, which when totaled exceed 
 11.31  60 percent of the adjusted gross gaming facility revenue, 
 11.32  provided that the director may credit and expend amounts which 
 11.33  when totaled that exceed 60 percent where the excess is 
 11.34  represented necessary by capital costs and expenditures and 
 11.35  facility occupancy expenditures of the gaming facility.  In 
 11.36  addition to this percentage the director is authorized, if 
 12.1   necessary to meet the current obligations of the gaming 
 12.2   facility, to credit up to 25 percent of an amount equal to the 
 12.3   average annual amount which was authorized to be credited to the 
 12.4   gaming facility operations account for the previous three fiscal 
 12.5   years but was not needed to meet the obligations of the gaming 
 12.6   facility. 
 12.7      Sec. 15.  [349A.20] [STATE GAMING FACILITY.] 
 12.8      Subdivision 1.  [AUTHORIZATION.] The director shall 
 12.9   establish and operate a gaming facility at a site located in the 
 12.10  metropolitan area defined in section 473.121, subdivision 2, 
 12.11  that is determined by the director to maximize revenues from the 
 12.12  gaming facility operations.  If a home rule charter or statutory 
 12.13  city notifies the director by September 1, 2003, that it does 
 12.14  not consent to being considered as a site for the state gaming 
 12.15  facility, the director will not consider that city as a site for 
 12.16  the facility.  The director may choose to solicit bids from 
 12.17  interested cities, and must publish standards for such bids 30 
 12.18  days in advance.  
 12.19     Subd. 2.  [TRIBAL AGREEMENT.] (a) The director shall 
 12.20  execute a written contract on behalf of the state to construct 
 12.21  and divide proceeds under section 297A.62, subdivision 4, from a 
 12.22  state-run gaming facility with any Minnesota tribal government 
 12.23  choosing to be a party to the contract.  This agreement shall 
 12.24  have no legal effect on any existing tribal-state compact.  
 12.25  Tribal governments must express their intention to be a party to 
 12.26  this contract by passing a tribal council resolution by April 
 12.27  4.  Any tribal government that does not choose to sign an 
 12.28  agreement in principle by passing a resolution by April 4 shall 
 12.29  be deemed to have refused to enter into this agreement.  Tribal 
 12.30  governments may enter into this agreement via any wholly owned 
 12.31  affiliate, tribally chartered corporation wholly owned by the 
 12.32  tribe, or other legal entity wholly owned by the tribe.  This 
 12.33  agreement must include, at a minimum, the following provisions: 
 12.34     (1) an agreement to share the costs of site selection, 
 12.35  gaming facility construction, and start-up on a 50/50 basis 
 12.36  between all involved tribal governments and the state; and 
 13.1      (2) a revenue sharing agreement on amounts collected under 
 13.2   section 297A.62, subdivision 4, and net proceeds from the 
 13.3   operation of the gaming facility, which apportions 60 percent to 
 13.4   the tribal governments.  The shares of revenue due to tribal 
 13.5   governments under this clause, must be apportioned as follows.  
 13.6   If White Earth and Red Lake Nations are the only tribal 
 13.7   governments signing the agreement, the revenue must be split 
 13.8   equally.  If additional tribal governments sign the agreement, 
 13.9   then 60 percent of the revenue must be split equally among all 
 13.10  tribal governments participating and 40 percent of the revenue 
 13.11  must be split among tribal governments on the basis of tribal 
 13.12  enrollment. 
 13.13     (b) If the lottery director chooses to use a loan or 
 13.14  revenue bonds to construct a gaming facility, tribal governments 
 13.15  may choose to participate in the loan through a carried 
 13.16  interest, to be repaid from the tribal share of net profits.  
 13.17  The director may only choose one site and operate one gaming 
 13.18  facility under this act, and shall provide for injunctive relief 
 13.19  in contracts with tribal governments should the state attempt to 
 13.20  establish and operate any other gaming facility.  The state 
 13.21  shall also agree, pursuant to this contract, not to authorize 
 13.22  new forms of gambling, except for those already authorized under 
 13.23  chapters 240, 349, and 349A.  Contracts signed with tribal 
 13.24  governments or their representatives under this act shall run 
 13.25  for not more than 20 years, and shall be negotiable and 
 13.26  renewable every 15 years thereafter.  Tribal governments may opt 
 13.27  into or out of this arrangement as a part of the renewal process.
 13.28     Subd. 3.  [OPERATIONS.] (a) The director shall construct, 
 13.29  purchase, or lease necessary equipment and facilities for the 
 13.30  operation of the gaming facility.  The director may choose to 
 13.31  lease a temporary facility for gaming facility operation pending 
 13.32  construction of a new facility.  Contracts entered into under 
 13.33  this section are not subject to chapter 16C.  In the 
 13.34  construction of the gaming facility and subsequent maintenance 
 13.35  and repair thereof, the director, in consultation with the urban 
 13.36  entertainment and gaming advisory council in section 19, shall 
 14.1   make good faith efforts to contract with minority-owned and 
 14.2   American Indian businesses.  General contractors awarded 
 14.3   contracts under this section shall be required to utilize 
 14.4   minority-owned and American Indian businesses when 
 14.5   subcontracting for labor, skill, material, or machinery.  
 14.6      (b) The director may contract with private vendors for 
 14.7   goods and services for the gaming facility, consistent with the 
 14.8   constitutional requirement that the gaming facility be state 
 14.9   operated.  Contracts under this section are subject to section 
 14.10  349A.07 and are not subject to chapter 16C.  The director shall 
 14.11  make good faith efforts to utilize minority and American Indian 
 14.12  vendors and shall consult with the urban entertainment and 
 14.13  gaming advisory council in section 19.  Best efforts shall be 
 14.14  made by the director to have 55 percent of the vendors providing 
 14.15  goods and services be businesses owned by minorities and 
 14.16  American Indians.  The director shall establish standards for 
 14.17  any management or service contracts, including compensation 
 14.18  requirements, security and employee standards, and any other 
 14.19  requirements deemed necessary by the director. 
 14.20     (c) The director may contract with a facilities manager for 
 14.21  day-to-day management duties, provided that the director 
 14.22  maintains control of the operations of the gaming facility.  The 
 14.23  director may request the director of the division of alcohol and 
 14.24  gambling enforcement to investigate the background, financial 
 14.25  responsibility, security, and integrity of any person who enters 
 14.26  into or intends to enter into a contract with the director 
 14.27  relating to the operations of the gaming facility.  The director 
 14.28  has access to all criminal history data compiled by the division 
 14.29  of alcohol and gambling enforcement on all vendors and potential 
 14.30  vendors who have entered into or intend to enter into a contract 
 14.31  relating to the operation of the gaming facility.  
 14.32     Subd. 4.  [EMPLOYEES.] (a) The director may appoint 
 14.33  personnel as necessary to operate the gaming facility in 
 14.34  accordance with chapter 43A, except that all employees will be 
 14.35  in the unclassified service.  Section 349A.02, subdivisions 6 
 14.36  and 7, apply to all employees hired under this section, and to 
 15.1   all employees of contractors who work in the gaming facility. 
 15.2      (b) The director shall consult with the urban entertainment 
 15.3   and gaming advisory council and contract with an employment 
 15.4   assistance firm to create an employment program to recruit, 
 15.5   hire, train, and retain minorities and American Indians as 
 15.6   employees of the gaming facility.  Best efforts shall be made by 
 15.7   the director to have 55 percent of entry level, middle 
 15.8   management, and upper management staffed by minorities and 
 15.9   American Indians. 
 15.10     Subd. 5.  [GAMES.] Games to be offered at the facility are 
 15.11  limited to blackjack and other card games commonly played at 
 15.12  casinos within the state as authorized by the director, video 
 15.13  games, pull-tabs, and bingo.  The director shall determine the 
 15.14  procedures for the games as provided under section 349A.04.  
 15.15  Gaming machines in which a coin, token, or currency is deposited 
 15.16  in order to play a game, which use a video display and a 
 15.17  microprocessor or an electromagnetic device with a spinning 
 15.18  reel, must be provided at the facility.  Notwithstanding section 
 15.19  349A.13, clause (2), the director may authorize a game or 
 15.20  install a device that when operated by coin or currency 
 15.21  determines the winner of a game.  The gaming facility must have 
 15.22  a minimum of 3,000 gaming machines. 
 15.23     Subd. 6.  [PRIZES.] A person who plays a game at the gaming 
 15.24  facility agrees to be bound by the game procedures applicable to 
 15.25  that particular game.  The player acknowledges that the 
 15.26  determination of whether the player has won a prize is subject 
 15.27  to the rules of the director, game procedures established for 
 15.28  that game, claim procedures established for that game, and any 
 15.29  confidential or public validation procedures established by the 
 15.30  director for that game.  Any prize won at the gaming facility is 
 15.31  not subject to section 349A.08, subdivision 8. 
 15.32     Subd. 7.  [AGE RESTRICTION.] No person under the age of 18 
 15.33  may play any game or win a prize from any game at the gaming 
 15.34  facility. 
 15.35     Subd. 8.  [DETENTION OF SUSPECTS.] (a) The director, an 
 15.36  employee designated by the director, or a security officer 
 16.1   licensed under Minnesota Rules, chapter 7878, may detain a 
 16.2   person if they have probable cause to believe that the person 
 16.3   detained has violated section 609.651 or 609.76 while at the 
 16.4   gaming facility. 
 16.5      (b) The director, designee, or security officer may detain 
 16.6   a person to:  
 16.7      (1) require the person to provide identification or to 
 16.8   verify identification; 
 16.9      (2) inquire as to whether the person possesses any 
 16.10  contraband as provided by section 609.762, subdivision 1; 
 16.11     (3) notify a peace officer of the alleged violation; or 
 16.12     (4) institute criminal proceedings against the person.  
 16.13     (c) The person detained must be promptly informed of the 
 16.14  purpose of the detention and may not be subjected to unnecessary 
 16.15  or unreasonable force, nor to interrogation against the person's 
 16.16  will.  If at any time the person detained requests the summoning 
 16.17  of a peace officer, a peace officer must be notified 
 16.18  immediately.  The director, their designee, or security officer 
 16.19  must not detain a person for more than one hour unless a peace 
 16.20  officer requests detention, in which case the person may be 
 16.21  detained until the peace officer has accepted custody of or 
 16.22  released the person.  
 16.23     (d) Upon a charge being made by the director, their 
 16.24  designee, or security officer, a peace officer may arrest a 
 16.25  person with a warrant if the officer has probable cause to 
 16.26  believe that the person has committed or attempted to commit an 
 16.27  offense described in section 609.76.  
 16.28     (e) Neither the director, their designee, security officer, 
 16.29  or peace officer is criminally or civilly liable for any 
 16.30  detention authorized by this section if probable cause exists 
 16.31  for the detention, and the detention was not conducted with 
 16.32  unreasonable force or in bad faith.  
 16.33     (f) The director, their designee, security, or peace 
 16.34  officer may exclude a person from the gaming facility or remove 
 16.35  that person from the gaming facility if the person is suspected 
 16.36  to have violated section 609.76 or 609.651, or possesses 
 17.1   contraband as provided in section 609.762, subdivision 1.  
 17.2      (g) The director may establish a self-exclusion program by 
 17.3   which persons, at their request, may be excluded from the gaming 
 17.4   facility. 
 17.5      Subd. 9.  [REVENUE BONDS.] To provide money to acquire land 
 17.6   and construct and improve facilities for the gaming facility, 
 17.7   and for all other associated costs and expenses in the 
 17.8   establishment of the gaming facility, upon request of the 
 17.9   director, the commissioner of finance shall authorize, issue, 
 17.10  and sell revenue bonds payable solely from the revenues derived 
 17.11  from the gaming facility.  The proceeds of the bonds are 
 17.12  appropriated for these purposes.  The bonds may additionally be 
 17.13  secured by a mortgage of all or any portion of the gaming 
 17.14  facility.  The bonds shall be sold and issued upon such terms 
 17.15  and in such manner as the commissioner shall determine to be in 
 17.16  the best interests of the state.  The bonds are not public debt, 
 17.17  and the full faith, credit, and taxing powers of the state are 
 17.18  not pledged for their payment.  The bonds and the interest 
 17.19  thereon shall not be paid, directly or indirectly, in whole or 
 17.20  in part, from a tax of statewide application on any class of 
 17.21  property, income transaction, or privilege.  
 17.22     Subd. 10.  [SALE OF INTOXICATING LIQUOR.] The commissioner 
 17.23  of public safety shall issue to the director an on-sale license 
 17.24  for the sale of intoxicating liquor at the gaming facility.  The 
 17.25  annual fee for the license issued pursuant to this subdivision 
 17.26  shall be set by the commissioner of public safety at an amount 
 17.27  comparable to the fee charged by municipalities in the 
 17.28  surrounding area for a similar license.  All provisions of 
 17.29  chapter 340 shall apply to the sale of intoxicating liquor at 
 17.30  the gaming facility.  
 17.31     Subd. 11.  [USER FEES.] The director may charge fees as are 
 17.32  deemed reasonable for uses relating to the gaming facility 
 17.33  including, but not limited to, parking, food and beverage, and 
 17.34  entertainment.  
 17.35     Subd. 12.  [LOCAL LICENSES.] No political subdivision may 
 17.36  require a local license, restrict or regulate the operation, or 
 18.1   impose a tax or fee on the operation of the gaming facility 
 18.2   under this section.  
 18.3      Subd. 13.  [LIABILITY.] The state and tribal governments 
 18.4   are immune from civil liability arising from their activities 
 18.5   under this section, except for: 
 18.6      (1) liability specifically provided for under a contractual 
 18.7   agreement; 
 18.8      (2) liability imposed by statute; or 
 18.9      (3) liability for personal injury. 
 18.10     Sec. 16.  Minnesota Statutes 2002, section 541.21, is 
 18.11  amended to read: 
 18.12     541.21 [COMMITMENTS FOR GAMBLING DEBT VOID.] 
 18.13     Every note, bill, bond, mortgage, or other security or 
 18.14  conveyance in which the whole or any part of the consideration 
 18.15  shall be for any money or goods won by gambling or playing at 
 18.16  cards, dice, or any other game whatever, or by betting on the 
 18.17  sides or hands of any person gambling, or for reimbursing or 
 18.18  repaying any money knowingly lent or advanced at the time and 
 18.19  place of such gambling or betting, or lent and advanced for any 
 18.20  gambling or betting to any persons so gambling or betting, shall 
 18.21  be void and of no effect as between the parties to the same, and 
 18.22  as to all persons except such as hold or claim under them in 
 18.23  good faith, without notice of the illegality of the 
 18.24  consideration of such contract or conveyance.  The provisions of 
 18.25  this section shall not apply to:  (1) pari-mutuel wagering 
 18.26  conducted under a license issued pursuant to chapter 240; (2) 
 18.27  purchase of tickets in the state lottery and gaming facility 
 18.28  activities under chapter 349A; (3) gaming activities conducted 
 18.29  pursuant to the Indian Gaming Regulatory Act, 25 U.S.C. 2701 et 
 18.30  seq.; or (4) lawful gambling activities permitted under chapter 
 18.31  349. 
 18.32     Sec. 17.  Minnesota Statutes 2002, section 609.75, 
 18.33  subdivision 3, is amended to read: 
 18.34     Subd. 3.  [WHAT ARE NOT BETS.] The following are not bets: 
 18.35     (1) A contract to insure, indemnify, guarantee or otherwise 
 18.36  compensate another for a harm or loss sustained, even though the 
 19.1   loss depends upon chance. 
 19.2      (2) A contract for the purchase or sale at a future date of 
 19.3   securities or other commodities. 
 19.4      (3) Offers of purses, prizes or premiums to the actual 
 19.5   contestants in any bona fide contest for the determination of 
 19.6   skill, speed, strength, endurance, or quality or to the bona 
 19.7   fide owners of animals or other property entered in such a 
 19.8   contest. 
 19.9      (4) The game of bingo when conducted in compliance with 
 19.10  sections 349.11 to 349.23. 
 19.11     (5) A private social bet not part of or incidental to 
 19.12  organized, commercialized, or systematic gambling. 
 19.13     (6) The operation of equipment or the conduct of a raffle 
 19.14  under sections 349.11 to 349.22, by an organization licensed by 
 19.15  the gambling control board or an organization exempt from 
 19.16  licensing under section 349.166.  
 19.17     (7) Pari-mutuel betting on horse racing when the betting is 
 19.18  conducted under chapter 240.  
 19.19     (8) The purchase and sale of state lottery tickets and 
 19.20  wagering and betting on games in the state-operated gaming 
 19.21  facility under chapter 349A.  
 19.22     Sec. 18.  Minnesota Statutes 2002, section 609.761, 
 19.23  subdivision 2, is amended to read: 
 19.24     Subd. 2.  [STATE LOTTERY.] Sections 609.755 and 609.76 do 
 19.25  not prohibit the operation of the state lottery or the sale, 
 19.26  possession, or purchase of tickets for the state lottery or 
 19.27  games conducted at the gaming facility under chapter 349A.  
 19.28     Sec. 19.  [URBAN ENTERTAINMENT AND GAMING ADVISORY 
 19.29  COUNCIL.] 
 19.30     An urban entertainment and gaming advisory council is 
 19.31  established.  Five members shall be appointed by the governor; 
 19.32  three at-large members and two representing Minnesota American 
 19.33  Indians living in urban areas.  Each tribal government 
 19.34  participating in the revenue sharing agreement in Minnesota 
 19.35  Statutes, section 349A.20, shall appoint one member and the city 
 19.36  selected shall also appoint one member.  The council shall bring 
 20.1   to the attention of the state lottery any matters that the 
 20.2   council deems necessary and review and comment upon matters as 
 20.3   requested.  Members of the council shall serve without 
 20.4   compensation.  Notwithstanding Minnesota Statutes, section 
 20.5   15.059, subdivision 5, this advisory committee does not expire 
 20.6   until June 30, 2008. 
 20.7      Sec. 20.  [APPROPRIATION.] 
 20.8      $....... is appropriated to the director of the lottery 
 20.9   from the general fund to the director of the state lottery for 
 20.10  capital, acquisition, and initial operating costs of the gaming 
 20.11  facility authorized under section 15.  The director must repay 
 20.12  from the gaming facility operations account, with interest at 
 20.13  the average monthly rate on invested treasurer's cash, not later 
 20.14  than June 30, 2004. 
 20.15     Sec. 21.  [EFFECTIVE DATE.] 
 20.16     This act is effective the day following final enactment.