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SF 1975

1st Engrossment - 87th Legislature (2011 - 2012) Posted on 03/23/2012 08:55am

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

Bill Text Versions

Engrossments
Introduction Posted on 02/17/2012
1st Engrossment Posted on 03/08/2012

Current Version - 1st Engrossment

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A bill for an act
relating to state government; appropriating money to the Racing Commission,
the Gambling Control Board, and the State Lottery for operations on an ongoing
basis; appropriating money to management and budget for functions that
support ongoing operations of the Racing Commission, the Gambling Control
Board and the State Lottery; amending Minnesota Statutes 2010, sections
240.15, subdivision 6; 240.155, subdivision 1; 240.30, subdivision 9; 349.151,
subdivision 4, by adding a subdivision; 349A.10, by adding subdivisions;
proposing coding for new law in Minnesota Statutes, chapter 240.

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

Section 1.

Minnesota Statutes 2010, section 240.15, subdivision 6, is amended to read:


Subd. 6.

Disposition of proceeds; account.

The commission shall distribute all
money received under this section, and all money received from license fees and fines it
collects, according to this subdivision. All money designated for deposit in the Minnesota
breeders fund must be paid into that fund for distribution under section 240.18 except that
all money generated by full racing card simulcasts must be distributed as provided in
section 240.18, subdivisions 2, paragraph (d), clauses (1), (2), and (3); and 3. Revenue
from an admissions tax imposed under subdivision 1 must be paid to the local unit of
government at whose request it was imposed, at times and in a manner the commission
determines. Taxes received under this section and fines collected under section 240.22
must be paid to the commissioner of management and budget for deposit in the general
fund. All revenues from licenses and other fees imposed by the commission must be
deposited in the state treasury and credited to a racing and card playing regulation account
in the special revenue fund. Receipts in this account are available for the operations of the
commission up to the amount authorized in biennial appropriations from the legislature.new text begin If
a fiscal biennium ends without the enactment of an appropriation to the commission for the
following biennium, receipts in this account are annually appropriated to the commission
for the operations of the commission up to the amount authorized in the second year of the
most recently enacted biennial appropriation, until a biennial appropriation is enacted.
new text end

Sec. 2.

Minnesota Statutes 2010, section 240.155, subdivision 1, is amended to read:


Subdivision 1.

Reimbursement account credit.

Money received by the commission
as reimbursement for the costs of services provided by veterinarians, stewards, deleted text begin anddeleted text end
medical testing of horsesnew text begin , and fees received by the commission in the form of fees for
regulatory services
new text end must be deposited in the state treasury and credited to a racing
reimbursement accountnew text begin in the special revenue fundnew text end , except as provided under subdivision
2. Receipts are appropriatednew text begin , within the meaning of Article XI, section 1, of the Minnesota
Constitution,
new text end to the commission to pay the costs of providing the servicesnew text begin and all other
costs necessary to allow the commission to fulfill its regulatory oversight duties required
by chapter 240 and commission rule
new text end . new text begin If the major appropriation bills needed to finance
state government are not enacted by the beginning of a fiscal biennium, the commission
shall continue operations as required by chapter 240 and commission rule.
new text end

Sec. 3.

new text begin [240.156] APPROPRIATION FOR FUNCTIONS SUPPORTING THE
ONGOING OPERATION OF THE RACING COMMISSION.
new text end

new text begin If, by July 1 of an odd-numbered year, legislation has not been enacted to appropriate
money for the next biennium to the commissioner of management and budget for central
accounting, procurement, payroll, and human resources functions, amounts necessary to
operate those functions associated with operation of the Racing Commission under chapter
240 are appropriated for the next biennium from the general fund to the commissioner
of management and budget. As necessary, the commissioner may transfer a portion of
this appropriation to other state agencies to support carrying out these functions. Any
subsequent appropriation to the commissioner of management and budget for a biennium
in which this section has been applied shall supersede and replace the funding authorized
in this section.
new text end

Sec. 4.

Minnesota Statutes 2010, section 240.30, subdivision 9, is amended to read:


Subd. 9.

Reimbursement to commission.

The commission shall require that the
licensee reimburse it for the commission's actual costs, including personnel costs, of
regulating the card club. Amounts received under this subdivision must be deposited as
provided in section 240.155, subdivision 1new text begin , and are appropriated to the commissionnew text end .

Sec. 5.

Minnesota Statutes 2010, section 349.151, subdivision 4, is amended to read:


Subd. 4.

Powers and duties.

(a) The board has the following powers and duties:

(1) to regulate lawful gambling to ensure it is conducted in the public interest;

(2) to issue licenses to organizations and gambling managers, and to issue licenses
and renewals to distributors, distributor salespersons, manufacturers, and linked bingo
game providers;

(3) to collect and deposit fees due under this chapter;

(4) to receive reports required by this chapter and inspect all premises, records,
books, and other documents of organizations, distributors, manufacturers, and linked
bingo game providers to insure compliance with all applicable laws and rules;

(5) to make rules authorized by this chapter;

(6) to register gambling equipment and issue registration stamps;

(7) to provide by rule for the mandatory posting by organizations conducting lawful
gambling of rules of play and the odds and/or house percentage on each form of lawful
gambling;

(8) to report annually to the governor and legislature on its activities and on
recommended changes in the laws governing gambling;

(9) to report annually to the governor and legislature a financial summary for each
licensed organization identifying the gross receipts, prizes paid, allowable expenses,
lawful purpose expenditures including charitable contributions and all taxes and fees as
per section 349.12, subdivision 25, paragraph (a), clauses (8) and (18), and the percentage
of annual gross profit used for lawful purposes;

(10) to impose civil penalties of not more than $1,000 per violation on organizations,
distributors, distributor salespersons, manufacturers, linked bingo game providers, and
gambling managers for violating or failing to comply with any provision of this chapter,
chapter 297E, or any rule or order of the board;

(11) to issue premises permits to organizations licensed to conduct lawful gambling;

(12) to delegate to the director the authority to issue or deny license and premises
permit applications and renewals under criteria established by the board;

(13) to delegate to the director the authority to approve or deny fund loss requests,
contribution of gambling funds to another licensed organization, and property expenditure
requests under criteria established by the board;

(14) to suspend or revoke licenses and premises permits of organizations,
distributors, distributor salespersons, manufacturers, linked bingo game providers, or
gambling managers as provided in this chapter;

(15) to approve or deny requests from licensees for:

(i) waivers from fee requirements as provided in section 349.16, subdivision 6; and

(ii) variances from Gambling Control Board rules under section 14.055; and

(16) to register employees of organizations licensed to conduct lawful gambling;

(17) to require fingerprints from persons determined by board rule to be subject to
fingerprinting;

(18) to delegate to a compliance review group of the board the authority to investigate
alleged violations, issue consent orders, and initiate contested cases on behalf of the board;

(19) to order organizations, distributors, distributor salespersons, manufacturers,
linked bingo game providers, and gambling managers to take corrective actions; and

(20) to take all necessary steps to ensure the integrity of and public confidence
in lawful gambling.

(b) The board, or director if authorized to act on behalf of the board, may by
citation assess any organization, distributor, distributor salesperson, manufacturer, linked
bingo game provider, or gambling manager a civil penalty of not more than $1,000 per
violation for a failure to comply with any provision of this chapter, chapter 297E, or
any rule adopted or order issued by the board. Any organization, distributor, distributor
salesperson, gambling manager, linked bingo game provider, or manufacturer assessed
a civil penalty under this paragraph may request a hearing before the board. Appeals of
citations imposing a civil penalty are not subject to the provisions of the Administrative
Procedure Act.

(c) All penalties received by the board must be deposited in the general fund.

(d) All fees imposed by the board under sections 349.16 to 349.167 must be
deposited in the state treasury and credited to a lawful gambling regulation account in the
special revenue fund. Receipts in this account are available for the operations of the board
up to the amount authorized in biennial appropriations from the legislature.new text begin If a fiscal
biennium ends without the enactment of an appropriation to the board for the following
biennium, receipts in this account are annually appropriated to the board for the operations
of the board up to the amount authorized in the second year of the most recently enacted
biennial appropriation, until a biennial appropriation is enacted.
new text end

Sec. 6.

Minnesota Statutes 2010, section 349.151, is amended by adding a subdivision
to read:


new text begin Subd. 14. new text end

new text begin Appropriation for functions supporting the ongoing operation of the
Gambling Control Board.
new text end

new text begin If, by July 1 of an odd-numbered year, legislation has not been
enacted to appropriate money for the next biennium to the commissioner of management
and budget for central accounting, procurement, payroll, and human resources functions,
amounts necessary to operate those functions associated with operation of the Gambling
Control Board under chapter 349 are appropriated for the next biennium from the general
fund to the commissioner of management and budget. As necessary, the commissioner
may transfer a portion of this appropriation to other state agencies to support carrying out
these functions. Any subsequent appropriation to the commissioner of management and
budget for a biennium in which this section has been applied shall supersede and replace
the funding authorized in this section.
new text end

Sec. 7.

Minnesota Statutes 2010, section 349A.10, is amended by adding a subdivision
to read:


new text begin Subd. 8. new text end

new text begin Ongoing operations. new text end

new text begin The Minnesota Lottery shall conduct ongoing
operations, and all funds available to the lottery under chapter 349A are appropriated to
the lottery on a permanent and ongoing basis.
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. 8.

Minnesota Statutes 2010, section 349A.10, is amended by adding a subdivision
to read:


new text begin Subd. 9. new text end

new text begin Appropriation for functions supporting the ongoing operations of the
State Lottery.
new text end

new text begin If, by July 1 of an odd-numbered year, legislation has not been enacted
to appropriate money for the next biennium to the commissioner of management and
budget for central accounting, procurement, payroll, and human resources functions,
amounts necessary to operate those functions associated with operation of the State
Lottery under chapter 349A are appropriated for the next biennium from the general fund
to the commissioner of management and budget. As necessary, the commissioner may
transfer a portion of this appropriation to other state agencies to support carrying out these
functions. Any subsequent appropriation to the commissioner of management and budget
for a biennium in which this section has been applied shall supersede and replace the
funding authorized in this section.
new text end