SF 1450

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

  1.1                          A bill for an act 
  1.2             relating to economic development; providing for 
  1.3             riverboat gambling; authorizing the director of the 
  1.4             state lottery to establish gaming machines and 
  1.5             imposing a tax on adjusted gross revenue; providing 
  1.6             for sharing of revenue generated by gaming machines; 
  1.7             authorizing a person with a gaming machine location 
  1.8             contract to establish a card club with certain 
  1.9             conditions; providing powers and duties to the 
  1.10            director; amending Minnesota Statutes 2002, sections 
  1.11            299L.07, subdivisions 2, 2a; 340A.410, subdivision 5; 
  1.12            349A.01, subdivision 10, by adding subdivisions; 
  1.13            349A.10, subdivision 3; 349A.13; 541.20; 541.21; 
  1.14            609.75, subdivision 3; 609.761, subdivision 2; 
  1.15            proposing coding for new law in Minnesota Statutes, 
  1.16            chapters 297A; 349A. 
  1.17  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.18     Section 1.  [297A.651] [LOTTERY GAMING MACHINES; IN-LIEU 
  1.19  TAX.] 
  1.20     Adjusted gross revenue from the operation of gaming 
  1.21  machines authorized under chapter 349A are exempt from the tax 
  1.22  imposed under section 297A.62.  The state lottery must on or 
  1.23  before the 20th day of each month transmit to the commissioner 
  1.24  an amount equal to the adjusted gross revenue from the operation 
  1.25  of gaming machines, as defined in section 349A.01, for the 
  1.26  previous month multiplied by 40 percent.  Of the money collected 
  1.27  under this section, one-half must be transferred to the city 
  1.28  where the excursion entertainment boat is located and one-half 
  1.29  must be deposited in the state treasury and credited to the 
  1.30  general fund.  
  1.31     Sec. 2.  Minnesota Statutes 2002, section 299L.07, 
  2.1   subdivision 2, is amended to read: 
  2.2      Subd. 2.  [EXCLUSIONS.] Notwithstanding subdivision 1, a 
  2.3   gambling device: 
  2.4      (1) may be sold by a person who is not licensed under this 
  2.5   section, if the person (i) is not engaged in the trade or 
  2.6   business of selling gambling devices, and (ii) does not sell 
  2.7   more than one gambling device in any calendar year; 
  2.8      (2) may be sold by the governing body of a federally 
  2.9   recognized Indian tribe described in subdivision 2a, paragraph 
  2.10  (b), clause (1), which is not licensed under this section, if 
  2.11  (i) the gambling device was operated by the Indian tribe, (ii) 
  2.12  the sale is to a distributor licensed under this section, and 
  2.13  (iii) the licensed distributor notifies the commissioner of the 
  2.14  purchase, in the same manner as is required when the licensed 
  2.15  distributor ships a gambling device into Minnesota; 
  2.16     (3) may be possessed by a person not licensed under this 
  2.17  section if the person holds a permit issued under section 
  2.18  299L.08; and 
  2.19     (4) may be possessed by a state agency, with the written 
  2.20  authorization of the director, for display or evaluation 
  2.21  purposes only and not for the conduct of gambling; and 
  2.22     (5) may be possessed by the state lottery as authorized 
  2.23  under chapter 349A. 
  2.24     Sec. 3.  Minnesota Statutes 2002, section 299L.07, 
  2.25  subdivision 2a, is amended to read: 
  2.26     Subd. 2a.  [RESTRICTIONS.] (a) A manufacturer licensed 
  2.27  under this section may sell, offer to sell, lease, or rent, in 
  2.28  whole or in part, a gambling device only to a distributor 
  2.29  licensed under this section or to the state lottery as 
  2.30  authorized under chapter 349A. 
  2.31     (b) A distributor licensed under this section may sell, 
  2.32  offer to sell, market, rent, lease, or otherwise provide, in 
  2.33  whole or in part, a gambling device only to: 
  2.34     (1) the governing body of a federally recognized Indian 
  2.35  tribe that is authorized to operate the gambling device under a 
  2.36  tribal state compact under the Indian Gaming Regulatory Act, 
  3.1   Public Law Number 100-497, and future amendments to it; 
  3.2      (2) a person for use in the person's dwelling for display 
  3.3   or amusement purposes in a manner that does not afford players 
  3.4   an opportunity to obtain anything of value; 
  3.5      (3) another distributor licensed under this section; or 
  3.6      (4) a person in another state who is authorized under the 
  3.7   laws of that state to possess the gambling device; or 
  3.8      (5) the state lottery as authorized under chapter 349A. 
  3.9      Sec. 4.  Minnesota Statutes 2002, section 340A.410, 
  3.10  subdivision 5, is amended to read: 
  3.11     Subd. 5.  [GAMBLING PROHIBITED.] (a) Except as otherwise 
  3.12  provided in this subdivision, no retail establishment licensed 
  3.13  to sell alcoholic beverages may keep, possess, or operate, or 
  3.14  permit the keeping, possession, or operation on the licensed 
  3.15  premises of dice or any gambling device as defined in section 
  3.16  349.30, or permit gambling therein.  
  3.17     (b) Gambling equipment may be kept or operated and raffles 
  3.18  conducted on licensed premises and adjoining rooms when the use 
  3.19  of the gambling equipment is authorized by (1) chapter 349, (2) 
  3.20  a tribal ordinance in conformity with the Indian Gaming 
  3.21  Regulatory Act, Public Law Number 100-497, or (3) a tribal-state 
  3.22  compact authorized under section 3.9221. 
  3.23     (c) Lottery tickets may be purchased and sold within the 
  3.24  licensed premises as authorized by the director of the lottery 
  3.25  under chapter 349A.  
  3.26     (d) Dice may be kept and used on licensed premises and 
  3.27  adjoining rooms as authorized by section 609.761, subdivision 4. 
  3.28     (e) Gambling devices may be operated as authorized by 
  3.29  chapter 349A. 
  3.30     Sec. 5.  Minnesota Statutes 2002, section 349A.01, 
  3.31  subdivision 10, is amended to read: 
  3.32     Subd. 10.  [LOTTERY PROCUREMENT CONTRACT.] "Lottery 
  3.33  procurement contract" means a contract to provide lottery 
  3.34  products, gaming machines, maintenance of gaming machines, 
  3.35  computer hardware and software used to monitor sales of lottery 
  3.36  tickets and gaming machine plays, and lottery tickets.  "Lottery 
  4.1   procurement contract" does not include a contract to provide an 
  4.2   annuity or prize payment agreement or materials, supplies, 
  4.3   equipment, or services common to the ordinary operation of a 
  4.4   state agency. 
  4.5      Sec. 6.  Minnesota Statutes 2002, section 349A.01, is 
  4.6   amended by adding a subdivision to read: 
  4.7      Subd. 14.  [EXCURSION ENTERTAINMENT BOAT.] "Excursion 
  4.8   entertainment boat" means a self-propelled excursion boat that 
  4.9   is the site selected for the location of gaming machines 
  4.10  pursuant to a location contract under section 349A.20. 
  4.11     Sec. 7.  Minnesota Statutes 2002, section 349A.01, is 
  4.12  amended by adding a subdivision to read: 
  4.13     Subd. 15.  [GAMING MACHINE.] "Gaming machine" means any 
  4.14  machine in which a coin token or other currency is deposited to 
  4.15  play a game that uses a video display and microprocessors or an 
  4.16  electromechanical device with a spinning reel. 
  4.17     Sec. 8.  Minnesota Statutes 2002, section 349A.01, is 
  4.18  amended by adding a subdivision to read: 
  4.19     Subd. 16.  [GAMING MACHINE GAME.] "Gaming machine game" 
  4.20  means a game operated by a gaming machine as authorized by the 
  4.21  director. 
  4.22     Sec. 9.  Minnesota Statutes 2002, section 349A.01, is 
  4.23  amended by adding a subdivision to read: 
  4.24     Subd. 17.  [GAMING MACHINE PLAY.] "Gaming machine play" 
  4.25  means an electronic record that proves participation in a gaming 
  4.26  machine game. 
  4.27     Sec. 10.  Minnesota Statutes 2002, section 349A.01, is 
  4.28  amended by adding a subdivision to read: 
  4.29     Subd. 18.  [ADJUSTED GROSS GAMING MACHINE 
  4.30  REVENUE.] "Adjusted gross gaming machine revenue" means the sum 
  4.31  of all money received by the lottery for gaming machine plays, 
  4.32  less the amount paid out in prizes for gaming machine games. 
  4.33     Sec. 11.  Minnesota Statutes 2002, section 349A.10, 
  4.34  subdivision 3, is amended to read: 
  4.35     Subd. 3.  [LOTTERY OPERATIONS.] (a) The director shall 
  4.36  establish a lottery operations account in the lottery fund.  The 
  5.1   director shall pay all costs of operating the lottery, including 
  5.2   payroll costs or amounts transferred to the state treasury for 
  5.3   payroll costs, but not including lottery prizes, from the 
  5.4   lottery operating account.  The director shall credit to the 
  5.5   lottery operations account amounts sufficient to pay the 
  5.6   operating costs of the lottery. 
  5.7      (b) Except as provided in paragraph (e), the director may 
  5.8   not credit in any fiscal year thereafter amounts to the lottery 
  5.9   operations account which when totaled exceed 15 percent of gross 
  5.10  revenue to the lottery fund in that fiscal year.  In computing 
  5.11  total amounts credited to the lottery operations account under 
  5.12  this paragraph the director shall disregard amounts transferred 
  5.13  to or retained by lottery retailers as sales commissions or 
  5.14  other compensation and amounts transferred or retained by an 
  5.15  excursion entertainment boat pursuant to a location contract 
  5.16  under section 349A.20. 
  5.17     (c) The director of the lottery may not expend after July 
  5.18  1, 1991, more than 2-3/4 percent of gross revenues in a fiscal 
  5.19  year for contracts for the preparation, publication, and 
  5.20  placement of advertising. 
  5.21     (d) Except as the director determines, the lottery is not 
  5.22  subject to chapter 16A relating to budgeting, payroll, and the 
  5.23  purchase of goods and services. 
  5.24     (e) In addition to the amounts credited to the lottery 
  5.25  operations account under paragraph (b), the director is 
  5.26  authorized, if necessary, to meet the current obligations of the 
  5.27  lottery and to credit up to 25 percent of an amount equal to the 
  5.28  average annual amount which was authorized to be credited to the 
  5.29  lottery operations account for the previous three fiscal years 
  5.30  but was not needed to meet the obligations of the lottery. 
  5.31     Sec. 12.  Minnesota Statutes 2002, section 349A.13, is 
  5.32  amended to read: 
  5.33     349A.13 [RESTRICTIONS.] 
  5.34     Nothing in this chapter: 
  5.35     (1) authorizes the director to conduct a lottery game or 
  5.36  contest the winner or winners of which are determined by the 
  6.1   result of a sporting event other than a horse race conducted 
  6.2   under chapter 240; 
  6.3      (2) authorizes the director to install or operate a lottery 
  6.4   device operated by coin or currency which when operated 
  6.5   determines the winner of a game except as authorized under 
  6.6   section 349A.20; and 
  6.7      (3) authorizes the director to sell pull-tabs as defined 
  6.8   under section 349.12, subdivision 32. 
  6.9      Sec. 13.  [349A.20] [GAMING MACHINES.] 
  6.10     Subdivision 1.  [LOCATION CONTRACT.] The director shall 
  6.11  enter into a contract with a person that meets the requirements 
  6.12  of this section to provide space for gaming machines at one 
  6.13  site, that is a port of call, located in the city of St. Paul.  
  6.14  For purposes of this section, "person" means a natural person or 
  6.15  public or private business entity, however organized.  Contracts 
  6.16  entered into under this section are not subject to chapter 16C.  
  6.17  The director may only enter into a contract under this section 
  6.18  with one person choosing to be a party to the contract.  The 
  6.19  director may only choose one site for the operation of gaming 
  6.20  machines under this act. 
  6.21     Subd. 2.  [PLACEMENT; REVENUE SHARING.] (a) Gaming machines 
  6.22  may only be placed on an excursion entertainment boat that is 
  6.23  owned or leased by the person.  The person is responsible for 
  6.24  leasing, purchasing, constructing, operating, and maintaining 
  6.25  equipment and facilities for the operation of the excursion 
  6.26  entertainment boat, except for gaming machines, including 
  6.27  docking or mooring facilities for the boat.  The person is 
  6.28  responsible for providing services and personnel, and for 
  6.29  reimbursing the director for costs. 
  6.30     (b) Contracts entered into under this section must provide 
  6.31  for the sharing of revenue generated by the gaming machines with 
  6.32  the person in an amount equal to at least 45 percent of adjusted 
  6.33  gross gaming machine revenue.  
  6.34     Subd. 3.  [OPERATION.] (a) All gaming machines that are 
  6.35  placed on an excursion entertainment boat pursuant to 
  6.36  subdivision 1 must be operated and controlled by the director. 
  7.1      (b) Gaming machines must be owned or leased by the director.
  7.2      (c) Gaming machines must be maintained by the lottery or by 
  7.3   a vendor that is under the control and direction of the director.
  7.4      (d) The director must have a central communications system 
  7.5   that monitors activities on each gaming machine.  The central 
  7.6   communications system must be located at a lottery office. 
  7.7      (e) The director must supervise the counting of money taken 
  7.8   from gaming machines. 
  7.9      (f) The director must supervise the general security 
  7.10  arrangements associated with and relating to the operation of 
  7.11  the gaming machines and implement procedures deemed appropriate. 
  7.12     (g) Advertising and promotional material produced by the 
  7.13  racetrack relating to gaming machines located at its facility 
  7.14  must be approved by the director. 
  7.15     (h) The director may implement other controls deemed 
  7.16  necessary for the operation of gaming machines under this 
  7.17  section. 
  7.18     Subd. 4.  [AUTHORIZATION; INVESTIGATION AND 
  7.19  INSPECTION.] (a) If the director determines that the person will 
  7.20  operate an excursion entertainment boat in accordance with all 
  7.21  applicable laws and rules, that the operation of the excursion 
  7.22  entertainment boat shall not adversely affect the public health, 
  7.23  safety, and welfare, and that the person is fit to operate an 
  7.24  excursion entertainment boat, the director shall enter into a 
  7.25  location contract authorizing the person to operate the 
  7.26  excursion entertainment boat. 
  7.27     (b) The director may conduct, or request the director of 
  7.28  alcohol and gambling enforcement to conduct, a comprehensive 
  7.29  background and financial investigation of any person seeking to 
  7.30  enter into a contract under this section and the sources of 
  7.31  financing.  The director may charge a person an investigative 
  7.32  fee to cover the costs of the investigation and to reimburse the 
  7.33  division of alcohol and gambling enforcement for its share of 
  7.34  the cost of investigation.  The director has access to all 
  7.35  criminal history data compiled by the division of alcohol and 
  7.36  gambling enforcement.  To ensure the integrity of gaming under 
  8.1   this section and compliance with laws and rules of the director, 
  8.2   the director and the director's representatives, including 
  8.3   representatives of the division of alcohol and gambling 
  8.4   enforcement, have the right to inspect the premises, books, and 
  8.5   other records of a person having a location contract under this 
  8.6   section at any time without a search warrant. 
  8.7      Subd. 5.  [CANCELLATION, SUSPENSION, AND REFUSAL TO RENEW 
  8.8   CONTRACTS OR LOCATIONS.] (a) The director shall cancel the 
  8.9   location contract of any person who: 
  8.10     (1) has been convicted of a felony or gross misdemeanor; 
  8.11     (2) has committed fraud, misrepresentation, or deceit; 
  8.12     (3) has provided false or misleading information to the 
  8.13  lottery; or 
  8.14     (4) has acted in a manner prejudicial to public confidence 
  8.15  in the integrity of the lottery. 
  8.16     (b) The director may cancel, suspend, or refuse to renew 
  8.17  the location contract of any person who: 
  8.18     (1) changes business location; 
  8.19     (2) fails to remit funds to the director in accordance with 
  8.20  the director's rules; 
  8.21     (3) violates a law or a rule or order of the director; or 
  8.22     (4) fails to comply with any of the terms in the location 
  8.23  contract. 
  8.24     (c) A contract cancellation, suspension, or refusal to 
  8.25  renew under this subdivision is a contested case under sections 
  8.26  14.57 to 14.69 and is in addition to any criminal penalties 
  8.27  provided for a violation of law or rule. 
  8.28     Subd. 6.  [OCCUPATIONAL LICENSES.] (a) The director may by 
  8.29  rule require and issue licenses to persons who wish to be 
  8.30  employed at the excursion entertainment boat for occupations the 
  8.31  director determines require licensing to ensure the integrity of 
  8.32  the gaming provided by this section.  Applications for a license 
  8.33  shall be on a form and in a manner prescribed by the director.  
  8.34  The director shall investigate each application to the extent 
  8.35  the director deems necessary and may request the assistance of 
  8.36  and may reimburse the division of alcohol and gambling 
  9.1   enforcement in conducting background investigations of 
  9.2   applicants. 
  9.3      (b) If the director determines that the applicant is 
  9.4   qualified for the occupation and will not adversely affect the 
  9.5   public health, welfare, or safety, or the integrity of gaming 
  9.6   under this section, the director shall issue or renew a 
  9.7   license.  The director may revoke or suspend a license under 
  9.8   this subdivision for a violation of law or rule which in the 
  9.9   director's opinion adversely affects the integrity of gaming 
  9.10  under this section, or for an intentional false statement in a 
  9.11  license application.  A license revocation or suspension for 
  9.12  more than 90 days is a contested case under sections 14.57 to 
  9.13  14.69 and is in addition to criminal penalties imposed for 
  9.14  violation of law or rule. 
  9.15     Subd. 7.  [SPECIFICATIONS.] Gaming machines must: 
  9.16     (1) maintain on nonresettable meters a permanent record, 
  9.17  capable of being printed out, of all transactions by the machine 
  9.18  and all entries into the machine; and 
  9.19     (2) be capable of being linked electronically to a central 
  9.20  communication system to provide auditing program information as 
  9.21  required by the director. 
  9.22     Subd. 8.  [GAMES.] The director shall specify the games 
  9.23  that may be placed on a gaming machine as set forth under 
  9.24  section 349A.04.  
  9.25     Subd. 9.  [EXAMINATION OF MACHINES.] The director shall 
  9.26  examine prototypes of gaming machines and require that the 
  9.27  manufacturer of the machine pay the cost of the examination.  
  9.28  The director may contract for the examination of gaming machines.
  9.29     Subd. 10.  [TESTING OF MACHINES.] The director may require 
  9.30  working models of a gaming machine to be transported to the 
  9.31  locations the director designates for testing, examination, and 
  9.32  analysis.  The manufacturer shall pay all costs for testing, 
  9.33  examination, analysis, and transportation of the machine model. 
  9.34     Subd. 11.  [PRIZES.] A person who plays a gaming machine 
  9.35  agrees to be bound by the rules and game procedures applicable 
  9.36  to that particular gaming machine game.  The player acknowledges 
 10.1   that the determination of whether the player has won a prize is 
 10.2   subject to the rules and game procedures adopted by the 
 10.3   director, claim procedures established by the director for the 
 10.4   game, and any confidential or public validation tests 
 10.5   established by the director for that game.  A prize claimed from 
 10.6   the play of a gaming machine game is not subject to the 
 10.7   provisions of section 349A.08, subdivision 8.  
 10.8      Subd. 12.  [PROHIBITIONS.] A person under the age of 18 
 10.9   years may not play a game on or claim a prize from a gaming 
 10.10  machine.  
 10.11     Subd. 13.  [COMPULSIVE GAMBLING NOTICE.] The director shall 
 10.12  prominently post, in the area where the gaming machines are 
 10.13  located, the toll-free telephone number established by the 
 10.14  commissioner of human services in connection with the compulsive 
 10.15  gambling program established under section 245.98.  The director 
 10.16  and the location provider shall establish a proactive plan to 
 10.17  identify problem gamblers and take appropriate action. 
 10.18     Subd. 14.  [LOCAL LICENSES.] Except as provided in section 
 10.19  297A.651, no political subdivision may require a license to 
 10.20  operate a gaming machine, restrict or regulate the placement of 
 10.21  gaming machines, or impose a tax or fee on the business of 
 10.22  operating gaming machines. 
 10.23     Subd. 15.  [SALE OF INTOXICATING LIQUOR.] The commissioner 
 10.24  of public safety shall issue to the director an on-sale license 
 10.25  for the sale of intoxicating liquor on the excursion 
 10.26  entertainment boat.  The annual fee for the license issued 
 10.27  pursuant to this subdivision shall be set by the commissioner of 
 10.28  public safety at an amount comparable to the fee charged by 
 10.29  municipalities in the surrounding area for a similar license.  
 10.30  All provisions of chapter 340A shall apply to the sale of 
 10.31  intoxicating liquor on the excursion entertainment boat. 
 10.32     Sec. 14.  [349A.22] [CARD CLUBS.] 
 10.33     Subdivision 1.  [CARD CLUB OPERATION.] A person that has a 
 10.34  location contract with the director under section 349A.20 may 
 10.35  operate a card club on the excursion entertainment boat and 
 10.36  offer card playing services to patrons only if the director has 
 11.1   authorized the person to operate a card club operation under 
 11.2   subdivision 5 and the director has approved the plan of 
 11.3   operation under subdivision 6.  The director may withdraw its 
 11.4   authorization for operation of a card club at any time for a 
 11.5   violation of a law or rule governing card club operation.  For 
 11.6   purposes of this chapter, "card club" and "card playing" have 
 11.7   the meanings given in section 240.01, subdivisions 24 and 25. 
 11.8      Subd. 2.  [SUPERVISION.] The authorized person is 
 11.9   responsible for conducting and supervising the card games, 
 11.10  providing all necessary equipment, services, and personnel, and 
 11.11  reimbursing the director for costs related to card club 
 11.12  regulation and enforcement. 
 11.13     Subd. 3.  [TYPE OF WAGERING.] All card club wagering 
 11.14  activities must be conducted in an unbanked system.  Unbanked 
 11.15  games include those games that involve a player pool.  For 
 11.16  purposes of this chapter, "unbanked" and "player pool" have the 
 11.17  meanings given in section 240.01, subdivisions 26 and 27. 
 11.18     Subd. 4.  [CHARGES.] The authorized person may charge 
 11.19  patrons for card playing services by deducting and retaining 
 11.20  money from wagers, by charging a fee based on playing time, or 
 11.21  by any other means authorized by the director. 
 11.22     Subd. 5.  [LIMITATION.] If the director determines that the 
 11.23  person will operate a card club in accordance with all 
 11.24  applicable law and rules and the approved plan of operation 
 11.25  under subdivision 6, that the operation of a card club by the 
 11.26  person will not adversely affect the public health, welfare, and 
 11.27  safety, and that the person is fit to operate a card club, the 
 11.28  director may authorize the person to conduct a card club on the 
 11.29  excursion entertainment boat as provided in section 349A.20.  
 11.30     Subd. 6.  [PLAN OF OPERATION.] (a) The director shall not 
 11.31  authorize a person to operate a card club unless the person has 
 11.32  submitted, and the director has approved, a plan of operation 
 11.33  for card playing activities.  The plan must set forth all 
 11.34  necessary details for conducting card playing activities, 
 11.35  including, among other things: 
 11.36     (1) specifying and defining all card games to be played, 
 12.1   including all governing aspects of each game; 
 12.2      (2) time and location of card playing activities; 
 12.3      (3) amount and method by which participants will be charged 
 12.4   for card playing services; 
 12.5      (4) arrangements to ensure the security of card playing 
 12.6   activities; 
 12.7      (5) designation of all employees of the person who 
 12.8   undertake supervisory positions related to card playing 
 12.9   activities; 
 12.10     (6) internal control systems for card playing activities; 
 12.11  and 
 12.12     (7) a plan for the training of card club personnel in 
 12.13  identification of problem gamblers and appropriate action to 
 12.14  prevent or control problem gambling. 
 12.15     (b) The person must prepare and make available to all 
 12.16  customers a written manual that covers all portions of the 
 12.17  current plan of operation.  The person must also publish, in 
 12.18  pamphlet form, a condensed and comprehensive version of the 
 12.19  manual and make it available to all customers. 
 12.20     Subd. 7.  [AMENDMENTS TO PLAN; VIOLATIONS; RELATION TO 
 12.21  OTHER LAWS.] (a) The person may amend the plan of operation only 
 12.22  with the director's approval.  The director may withdraw its 
 12.23  approval of a plan of operation. 
 12.24     (b) A violation of an approved plan of operation is deemed 
 12.25  to be a violation of a rule of the director for purposes of 
 12.26  section 349A.05. 
 12.27     Subd. 8.  [LIMITATIONS.] The director may not approve any 
 12.28  plan of operation under subdivision 6 that exceeds any of the 
 12.29  following limitations: 
 12.30     (1) the maximum number of tables used for card playing at 
 12.31  the card club at any one time, other than tables used for 
 12.32  instruction, demonstrations, or tournament play, may not exceed 
 12.33  50.  The table limit exception for tournament play is allowed 
 12.34  for only one tournament per year that lasts for no longer than 
 12.35  14 days; 
 12.36     (2) except as provided in clause (3), no wager may exceed 
 13.1   $60; 
 13.2      (3) for games in which each player is allowed to make only 
 13.3   one wager or has a limited opportunity to change that wager, no 
 13.4   wager may exceed $300. 
 13.5      Subd. 9.  [REIMBURSEMENT TO DIRECTOR.] The director shall 
 13.6   require that the person reimburse the director for the 
 13.7   director's actual costs, including personnel costs, of 
 13.8   regulating the card club.  Amounts received under this 
 13.9   subdivision must be deposited in the lottery fund in section 
 13.10  349A.10. 
 13.11     Subd. 10.  [REPORTING.] The person shall report all income 
 13.12  generated by the card club in an annual report to the director.  
 13.13  The report shall also account for all costs of operation, taxes 
 13.14  paid, and net profits to the person. 
 13.15     Sec. 15.  [349A.24] [DETENTION OF SUSPECTS.] 
 13.16     (a) The director, an employee designated by the director, 
 13.17  or a security officer licensed under Minnesota Rules, chapter 
 13.18  7878, may detain a person if they have probable cause to believe 
 13.19  that the person detained has violated section 609.651 or 609.76 
 13.20  while on the excursion entertainment boat. 
 13.21     (b) The director, designee, or security officer may detain 
 13.22  a person to:  
 13.23     (1) require the person to provide identification or to 
 13.24  verify identification; 
 13.25     (2) inquire as to whether the person possesses any 
 13.26  contraband as provided by section 609.762, subdivision 1; 
 13.27     (3) notify a peace officer of the alleged violation; or 
 13.28     (4) institute criminal proceedings against the person.  
 13.29     (c) The person detained must be promptly informed of the 
 13.30  purpose of the detention and may not be subjected to unnecessary 
 13.31  or unreasonable force, nor to interrogation against the person's 
 13.32  will.  If at any time the person detained requests the summoning 
 13.33  of a peace officer, a peace officer must be notified 
 13.34  immediately.  The director, their designee, or security officer 
 13.35  must not detain a person for more than one hour unless a peace 
 13.36  officer requests detention, in which case the person may be 
 14.1   detained until the peace officer has accepted custody of or 
 14.2   released the person.  
 14.3      (d) Upon a charge being made by the director, their 
 14.4   designee, or security officer, a peace officer may arrest a 
 14.5   person with a warrant if the officer has probable cause to 
 14.6   believe that the person has committed or attempted to commit an 
 14.7   offense described in section 609.76.  
 14.8      (e) Neither the director, their designee, security officer, 
 14.9   or peace officer is criminally or civilly liable for any 
 14.10  detention authorized by this section if probable cause exists 
 14.11  for the detention, and the detention was not conducted with 
 14.12  unreasonable force or in bad faith.  
 14.13     (f) The director, the director's designee, security 
 14.14  officer, or peace officer may exclude a person from the 
 14.15  excursion entertainment boat or remove that person from the 
 14.16  excursion entertainment boat if the person is suspected to have 
 14.17  violated section 609.76 or 609.651, or possesses contraband as 
 14.18  provided in section 609.762, subdivision 1.  
 14.19     (g) The director may establish a self-exclusion program by 
 14.20  which persons, at their request, may be excluded from the 
 14.21  excursion entertainment boat. 
 14.22     Sec. 16.  Minnesota Statutes 2002, section 541.20, is 
 14.23  amended to read: 
 14.24     541.20 [RECOVERY OF MONEY LOST.] 
 14.25     Every person who, by playing at cards, dice, or other game, 
 14.26  or by betting on the hands or sides of such as are gambling, 
 14.27  shall lose to any person so playing or betting any sum of money 
 14.28  or any goods, and pays or delivers the same, or any part 
 14.29  thereof, to the winner, may sue for and recover such money by a 
 14.30  civil action, before any court of competent jurisdiction.  For 
 14.31  purposes of this section, gambling shall not include pari-mutuel 
 14.32  wagering conducted under a license issued pursuant to chapter 
 14.33  240, purchase or sale of tickets in the state lottery, purchase 
 14.34  of gaming machine plays as authorized under chapter 349A, or 
 14.35  gambling authorized under chapters 349 and 349A. 
 14.36     Sec. 17.  Minnesota Statutes 2002, section 541.21, is 
 15.1   amended to read: 
 15.2      541.21 [COMMITMENTS FOR GAMBLING DEBT VOID.] 
 15.3      Every note, bill, bond, mortgage, or other security or 
 15.4   conveyance in which the whole or any part of the consideration 
 15.5   shall be for any money or goods won by gambling or playing at 
 15.6   cards, dice, or any other game whatever, or by betting on the 
 15.7   sides or hands of any person gambling, or for reimbursing or 
 15.8   repaying any money knowingly lent or advanced at the time and 
 15.9   place of such gambling or betting, or lent and advanced for any 
 15.10  gambling or betting to any persons so gambling or betting, shall 
 15.11  be void and of no effect as between the parties to the same, and 
 15.12  as to all persons except such as hold or claim under them in 
 15.13  good faith, without notice of the illegality of the 
 15.14  consideration of such contract or conveyance.  The provisions of 
 15.15  this section shall not apply to:  (1) pari-mutuel wagering 
 15.16  conducted under a license issued pursuant to chapter 240; (2) 
 15.17  purchase of tickets in the state lottery or other wagering 
 15.18  authorized under chapter 349A; (3) gaming activities conducted 
 15.19  pursuant to the Indian Gaming Regulatory Act, 25 U.S.C. 2701 et 
 15.20  seq.; or (4) lawful gambling activities permitted under chapter 
 15.21  349. 
 15.22     Sec. 18.  Minnesota Statutes 2002, section 609.75, 
 15.23  subdivision 3, is amended to read: 
 15.24     Subd. 3.  [WHAT ARE NOT BETS.] The following are not bets: 
 15.25     (1) A contract to insure, indemnify, guarantee or otherwise 
 15.26  compensate another for a harm or loss sustained, even though the 
 15.27  loss depends upon chance. 
 15.28     (2) A contract for the purchase or sale at a future date of 
 15.29  securities or other commodities. 
 15.30     (3) Offers of purses, prizes or premiums to the actual 
 15.31  contestants in any bona fide contest for the determination of 
 15.32  skill, speed, strength, endurance, or quality or to the bona 
 15.33  fide owners of animals or other property entered in such a 
 15.34  contest. 
 15.35     (4) The game of bingo when conducted in compliance with 
 15.36  sections 349.11 to 349.23. 
 16.1      (5) A private social bet not part of or incidental to 
 16.2   organized, commercialized, or systematic gambling. 
 16.3      (6) The operation of equipment or the conduct of a raffle 
 16.4   under sections 349.11 to 349.22, by an organization licensed by 
 16.5   the gambling control board or an organization exempt from 
 16.6   licensing under section 349.166.  
 16.7      (7) Pari-mutuel betting on horse racing when the betting is 
 16.8   conducted under chapter 240.  
 16.9      (8) The purchase and sale of state lottery tickets and 
 16.10  plays on a gaming machine under chapter 349A.  
 16.11     Sec. 19.  Minnesota Statutes 2002, section 609.761, 
 16.12  subdivision 2, is amended to read: 
 16.13     Subd. 2.  [STATE LOTTERY.] Sections 609.755 and 609.76 do 
 16.14  not prohibit the operation of the state lottery or the sale, 
 16.15  possession, or purchase of tickets for the state lottery under 
 16.16  chapter 349A, or the manufacture, possession, sale, or operation 
 16.17  of a gaming machine under chapter 349A. 
 16.18     Sec. 20.  [EFFECTIVE DATE.] 
 16.19     This act is effective the day following final enactment.