SF 1126

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to gambling; clarifying the powers and duties
of the Racing Commission to card clubs; establishing a
director of card clubs; authorizing rulemaking;
amending Minnesota Statutes 2004, sections 240.03;
240.04, by adding a subdivision; 240.23; 240.30,
subdivisions 2, 7.

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

Section 1.

Minnesota Statutes 2004, 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 new text begin and card club activities new text end in
Minnesota to ensure that deleted text begin it is deleted text end new text begin they are new text end conducted in the public
interest;

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

(3) to enforce all laws and rules governing horse
racing new text begin and card club activities new text end ;

(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 new text begin and card club wagering new text end ;

(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 new text begin and card club activities new text end in Minnesota; and

(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 finance 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 commission.

Sec. 2.

Minnesota Statutes 2004, section 240.04, is
amended by adding a subdivision to read:

new text begin Subd. 3a. new text end

new text begin Director of card clubs. new text end

new text begin The commission shall
employ a director of card clubs who serves in the unclassified
service at the commission's pleasure. The director is
responsible for providing independent surveillance and other
daily oversight of card club operations, and shall have expert
knowledge and training in matters relevant to the operation of
card clubs. The director shall perform the following duties:
new text end

new text begin (1) conduct routine compliance checks of card club
activities to ensure compliance with a card club's approved plan
of operation and with all laws and commission rules relating to
the security and integrity of card club activities;
new text end

new text begin (2) oversee surveillance operations in card clubs,
regularly review card club surveillance logs, and analyze on an
annual basis the number and type of surveillance incidents
occurring at card clubs; and
new text end

new text begin (3) regularly review card club finances, ensuring that card
clubs are properly distributing revenue and expenses from the
funds in the player pool.
new text end

Sec. 3.

Minnesota Statutes 2004, section 240.23, is
amended to read:

240.23 RULEMAKING AUTHORITY.

The commission has the authority, in addition to all other
rulemaking authority granted elsewhere in this chapter to
promulgate rules governing:

(a) the conduct of horse races held at licensed racetracks
in Minnesota, including but not limited to the rules of racing,
standards of entry, operation of claiming races, filing and
handling of objections, carrying of weights, and declaration of
official results;

(b) wire communications between the premises of a licensed
racetrack and any place outside the premises;

(c) information on horse races which is sold on the
premises of a licensed racetrack;

(d) liability insurance which it may require of all class
A, class B, and class D licensees;

(e) the auditing of the books and records of a licensee by
an auditor employed or appointed by the commission;

(f) emergency action plans maintained by licensed
racetracks and their periodic review;

(g) safety, security, and sanitation of stabling facilities
at licensed racetracks;

(h) entry fees and other funds received by a licensee in
the course of conducting racing which the commission determines
must be placed in escrow accounts;

(i) affirmative action in employment and contracting by
class A, class B, and class D licensees; deleted text begin and
deleted text end

(j) any other aspect of horse racing or pari-mutuel betting
which in its opinion affects the integrity of racing or the
public health, welfare, or safety new text begin ; and
new text end

new text begin (k) card club operations, including safety and security,
surveillance, and finances new text end .

Rules of the commission are subject to chapter 14, the
Administrative Procedure Act.

Sec. 4.

Minnesota Statutes 2004, section 240.30,
subdivision 2, is amended to read:

Subd. 2.

Supervision.

The authorized licensee is
responsible for conducting and supervising the card
games, new text begin subject to the oversight of the director of card clubs,
new text end providing all necessary equipment, services, and personnel, and
reimbursing the commission for costs related to card club
regulation and enforcement.

Sec. 5.

Minnesota Statutes 2004, section 240.30,
subdivision 7, is amended to read:

Subd. 7.

Amendments to plan; violations; relation to
other laws.

(a) The licensee may amend the plan of operation
only with the commission's approval. The commission may
withdraw its approval of a plan of operation.

(b) Card club activities are deemed to be relevant to the
integrity of horse racing activities in Minnesota for purposes
of sections deleted text begin 240.03; deleted text end 240.06, subdivision 7; 240.08; and 240.27,
subdivision 1.

(c) A violation of a law or rule relating to card club
operation or a violation of an approved plan of operation is
deemed to be a violation of law or rule for purposes of section
240.22.

(d) A violation of an approved plan of operation is deemed
to be a violation of a rule of the commission for purposes of
section 240.26, subdivision 3.

(e) Card playing at a card club is deemed to be a bet at a
licensed racetrack for purposes of section 240.28, subdivision 2.