SF 2177

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to gambling; authorizing the commissioner of public safety to issue
a casino license; providing for regulation and taxation of casino; providing a
process for the construction and financing of an entertainment complex located
in the city of Eagan that will contain a theme park, casino, convention facility,
hotels, as well as an extension of the Hiawatha Light Rail Line from the Mall
of America to the site; providing a process for the financing of sports stadiums
for the Minnesota Vikings, Minnesota Twins, and the University of Minnesota
Football Gophers; providing a process for financing future light rail and
commuter rail; amending Minnesota Statutes 2006, sections 272.02, by adding a
subdivision; 299L.07, subdivisions 2, 2a; 340A.410, subdivision 5; 349.31, by
adding a subdivision; 541.20; 541.21; 609.75, subdivision 3; 609.761, by adding
a subdivision; proposing coding for new law in Minnesota Statutes, chapter 349B.

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

ARTICLE 1

CASINO

Section 1.

Minnesota Statutes 2006, section 299L.07, subdivision 2, is amended to read:

Subd. 2.

Exclusions.

Notwithstanding subdivision 1, a gambling device:

(1) may be sold by a person who is not licensed under this section, if the person (i) is
not engaged in the trade or business of selling gambling devices, and (ii) does not sell
more than one gambling device in any calendar year;

(2) may be sold by the governing body of a federally recognized Indian tribe
described in subdivision 2a, paragraph (b), clause (1), which is not licensed under this
section, if (i) the gambling device was operated by the Indian tribe, (ii) the sale is to
a distributor licensed under this section, and (iii) the licensed distributor notifies the
commissioner of the purchase, in the same manner as is required when the licensed
distributor ships a gambling device into Minnesota;

(3) may be possessed by a person not licensed under this section if the person holds
a permit issued under section 299L.08; deleted text begin and deleted text end

(4) may be possessed by a state agency, with the written authorization of the director,
for display or evaluation purposes only and not for the conduct of gambling new text begin ; and
new text end

new text begin (5) may be possessed by a casino licensee under chapter 349B new text end .

Sec. 2.

Minnesota Statutes 2006, section 299L.07, subdivision 2a, is amended to read:

Subd. 2a.

Restrictions.

(a) A manufacturer licensed under this section may sell,
offer to sell, lease, or rent, in whole or in part, a gambling device only to a distributor
licensed under this section.

(b) A distributor licensed under this section may sell, offer to sell, market, rent,
lease, or otherwise provide, in whole or in part, a gambling device only to:

(1) the governing body of a federally recognized Indian tribe that is authorized
to operate the gambling device under a tribal state compact under the Indian Gaming
Regulatory Act, Public Law 100-497, and future amendments to it;

(2) a person for use in the person's dwelling for display or amusement purposes in a
manner that does not afford players an opportunity to obtain anything of value;

(3) another distributor licensed under this section; deleted text begin or
deleted text end

(4) a person in another state who is authorized under the laws of that state to possess
the gambling device new text begin ; or
new text end

new text begin (5) a casino licensee under chapter 349B new text end .

Sec. 3.

Minnesota Statutes 2006, section 340A.410, subdivision 5, is amended to read:

Subd. 5.

Gambling prohibited.

(a) Except as otherwise provided in this
subdivision, no retail establishment licensed to sell alcoholic beverages may keep, possess,
or operate, or permit the keeping, possession, or operation on the licensed premises of dice
or any gambling device as defined in section 349.30, or permit gambling therein.

(b) Gambling equipment may be kept or operated and raffles conducted on licensed
premises and adjoining rooms when the use of the gambling equipment is authorized by
(1) chapter 349, (2) a tribal ordinance in conformity with the Indian Gaming Regulatory
Act, Public Law 100-497, or (3) a tribal-state compact authorized under section 3.9221.

(c) Lottery tickets may be purchased and sold within the licensed premises as
authorized by the director of the lottery under chapter 349A.

(d) Dice may be kept and used on licensed premises and adjoining rooms as
authorized by section 609.761, subdivision 4.

new text begin (e) Gambling devices may be operated on the premises of a casino licensed under
chapter 349B.
new text end

Sec. 4.

Minnesota Statutes 2006, section 349.31, is amended by adding a subdivision
to read:

new text begin Subd. 3. new text end

new text begin Casino operation permitted. new text end

new text begin Sections 349.31 to 349.61 do not prohibit
the operation of gambling devices at a casino licensed under chapter 349B.
new text end

Sec. 5.

new text begin [349B.015] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Casino. new text end

new text begin "Casino" means a facility where the forms of gaming
authorized under section , subdivision 3, are conducted.
new text end

new text begin Subd. 2. new text end

new text begin Casino commission. new text end

new text begin "Casino Commission" means the commission
established in section .
new text end

new text begin Subd. 3. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of public safety.
new text end

new text begin Subd. 4. new text end

new text begin Adjusted gross receipts. new text end

new text begin "Adjusted gross receipts" means all revenue
received by a casino as wagers on gaming activities, less winnings paid to wagerers.
new text end

Sec. 6.

new text begin [349B.02] CASINO AUTHORIZED.
new text end

new text begin The commissioner may issue one license for the ownership and operation of a casino
within a site bounded by Cedar/77, Highway 13, and Yankee Doodle Road in the city of
Eagan, as defined in section 473.121, subdivision 2, to a newly formed limited partnership.
A Minnesota limited liability partnership will be formed as Von Feldt City, Ltd. Kevin
Von Feldt or a wholly owned entity controlled by Kevin Von Feldt will serve as general
partner controlling 25 percent of the limited partnership. The 75 percent balance of the
limited partnership will be comprised of Six Flags, Inc., Hilton Hotels, Time Warner, and
individuals whose respective percentages will not exceed five percent and who are icon
public figures in the entertainment industry. The limited partners controlling 75 percent
of the limited partnership will receive additional compensation for services rendered or
intellectual property licensed in regard to the development of the complex.
new text end

Sec. 7.

new text begin [349B.025] CASINO COMMISSION.
new text end

new text begin (a) A Casino Commission is established to review regulatory matters. The
commission shall establish procedures for monitoring casino operations, cash control,
accounting, and enforcement of commission regulations. Members of the commission
serve without compensation.
new text end

new text begin (b) One member of the commission shall be appointed by each of the following
officers, agencies, or organizations: the governor; the governing bodies of the Red Lake,
White Earth, and Leech Lake Indian Reservations; Canterbury Park; the Horsemens'
Benevolent Association; the state auditor; the commissioner of public safety; the
commissioner of revenue; the Gambling Control Board; the legislative auditor; the Met
Council; and the city and the county in which the casino is located.
new text end

Sec. 8.

new text begin [349B.04] EMPLOYEE LICENSES.
new text end

new text begin Subdivision 1. new text end

new text begin License required. new text end

new text begin Any person employed at a licensed casino in
an occupation that the commissioner by order determines requires licensing in order to
ensure the public health, welfare, or safety, or the integrity of gaming in Minnesota, must
have a license issued by the commissioner.
new text end

new text begin Subd. 2. new text end

new text begin Application. new text end

new text begin (a) An application for a casino occupational license must
be on a form and in a manner prescribed by the commissioner. The application must be
accompanied by an affidavit of qualification that the applicant:
new text end

new text begin (1) does not have a felony conviction of record in a state or federal court and does
not have a state or federal felony charge pending;
new text end

new text begin (2) is not and never has been connected with or engaged in an illegal business;
new text end

new text begin (3) has never been found guilty of fraud or misrepresentation in connection with
gambling; and
new text end

new text begin (4) has never been found guilty of a serious violation of law or rule relating to
gambling.
new text end

new text begin (b) The application must also contain an irrevocable consent statement, to be signed
by the applicant, which states that suits and actions relating to the subject matter of the
application or acts or omissions arising from it may be commenced against the applicant in
any court of competent jurisdiction in this state by the service on the secretary of state of
any summons, process, or pleading authorized by the laws of this state. If any summons,
process, or pleading is served upon the secretary of state, it must be by duplicate copies.
One copy must be retained in the Office of the Secretary of State and the other copy must
be forwarded immediately by certified mail to the address of the applicant, as shown by
the records of the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin Investigations. new text end

new text begin The commissioner shall investigate each applicant for
a casino occupational license to the extent the commissioner deems necessary. The
commissioner may require that an applicant be fingerprinted or furnish the applicant's
fingerprints. Investigations must be conducted and their costs paid in the manner
prescribed by section 299L.02, subdivision 2. The commissioner may cooperate with
national and international organizations and agencies in conducting investigations. The
commissioner may by rule provide for examining the qualifications of an applicant for the
license being applied for.
new text end

new text begin Subd. 4. new text end

new text begin License issuance and renewal. new text end

new text begin (a) If the commissioner determines
that the applicant is qualified for the occupation for which licensing is sought and will
not adversely affect the public health, welfare, and safety or the integrity of gaming in
Minnesota, the commissioner may issue a casino occupational license to the applicant. If
the commissioner makes a similar finding for a renewal of a casino occupational license
the commissioner may renew the license. Casino occupational licenses are effective for
one year.
new text end

new text begin (b) A referendum requiring approval by a majority of Eagan voters is required prior
to issuance of the initial license. This requirement can be waived by a majority vote of
the Eagan City Council.
new text end

new text begin (c) In the event that a court of law shall deem the issuance of the casino license to
be in violation of the State Constitution, an election to amend the State Constitution
to allow the issuance of said license is automatically authorized and will be scheduled
for the next state general election.
new text end

new text begin At the same time, the state lottery would instantly take over the operation of the casino
until the election is held. In the event that the constitutional amendment fails, the
lottery would permanently take over the operation of the casino with expenses incurred
reimbursed from gaming proceeds.
new text end

new text begin Subd. 5. new text end

new text begin Revocation and suspension. new text end

new text begin (a) The commissioner may revoke a casino
occupational license for a violation of law or rule which in the commissioner's opinion
adversely affects the integrity of gaming in Minnesota, or for an intentional false statement
made in a license application. The commissioner may suspend a casino occupational
license for up to one year for a violation of law, order, or rule.
new text end

new text begin (b) The commissioner may not revoke or suspend a license under this subdivision
unless the commissioner has granted the licensee a reasonable amount of time to cure the
violation giving rise to the revocation or suspension and, in the commissioner's reasonable
judgment, the licensee has failed to do so.
new text end

new text begin (c) A license revocation or suspension for more than 90 days is a contested case
under sections 14.57 to 14.69 of the Administrative Procedure Act and is in addition
to criminal penalties imposed for a violation of law or rule. The commissioner may
summarily suspend a license for more than 90 days prior to a contested case hearing
where it is necessary to ensure the integrity of gaming. A contested case hearing must
be held within 20 days of the summary suspension and the administrative law judge's
report must be issued within 20 days from the close of the hearing record. In all cases
involving summary suspension the commissioner must issue its final decision within 30
days from receipt of the report of the administrative law judge and subsequent exceptions
and argument under section 14.61.
new text end

Sec. 9.

new text begin [349B.06] GAME PROCEDURES.
new text end

new text begin Subdivision 1. new text end

new text begin Filing. new text end

new text begin A casino licensee under this chapter must file with the
commission a complete set of rules and procedures to govern all forms of gaming
authorized at the casino. The game procedures must specify payout percentages or ranges
of payout percentages for each form of gaming. The commission shall review the game
procedures and may approve them if the commission determines that they adequately
guarantee the integrity and fairness of gaming and the interests of casino patrons. A casino
licensee may not conduct gaming at the casino except in conformity with the approved
game procedures. The commission may conduct audits, inspections, and investigations of
gaming at the casino to ensure compliance with this section.
new text end

new text begin Subd. 2. new text end

new text begin Amendments. new text end

new text begin A casino licensee may amend approved game procedures
only if (1) the amendments have been filed with and approved by the commission and
(2) a copy of the amended procedures have been available to the public at the facility for
at least three days before their adoption.
new text end

new text begin Subd. 3. new text end

new text begin Gaming authorized. new text end

new text begin Game procedures approved by the commission may
include only the following forms of gaming:
new text end

new text begin (1) card games, including blackjack;
new text end

new text begin (2) bingo;
new text end

new text begin (3) video gaming devices and slot machines; and
new text end

new text begin (4) keno, craps, baccarat, and roulette.
new text end

new text begin Subd. 4. new text end

new text begin Agreement. new text end

new text begin An individual who participates in a game authorized at the
casino agrees to be bound by the rules and procedures applicable to that particular game.
new text end

Sec. 10.

new text begin [349B.07] SECURITY PLAN.
new text end

new text begin Subdivision 1. new text end

new text begin Filing. new text end

new text begin A casino licensee under this chapter must file with the
commissioner a comprehensive plan for security and surveillance at the casino. The
security plan must provide that security and surveillance will be undertaken only by
persons holding casino occupational licenses. The security plan must provide for the
testing of all gambling devices by the commissioner, or by a private entity under contract
to the commissioner. The commissioner shall review the security plan and may approve
it if the commissioner determines that it meets customary industry standards and is
reasonably adequate to ensure the integrity and safety of casino operations. A casino
licensee may not operate the casino except in conformity with the approved security plan.
The commissioner may conduct audits, inspections, and investigations of gambling at the
casino to ensure compliance with this section.
new text end

new text begin Subd. 2. new text end

new text begin Amendments. new text end

new text begin A casino licensee may amend a security plan only if the
amendments have been filed with and approved by the commissioner.
new text end

Sec. 11.

new text begin [349B.08] EXCLUSION OF CERTAIN PERSONS.
new text end

new text begin Subdivision 1. new text end

new text begin Persons excluded. new text end

new text begin The commissioner may by order exclude from
a licensed casino a person who:
new text end

new text begin (1) has a felony conviction of record under the laws of any state or the United States;
new text end

new text begin (2) has had a gaming-related license suspended, revoked, or denied by an authority
in another jurisdiction; or
new text end

new text begin (3) is determined by the commissioner, on the basis of evidence presented to the
commissioner, to be a threat to the integrity of gaming in Minnesota.
new text end

new text begin Subd. 2. new text end

new text begin Hearing; appeal. new text end

new text begin An order to exclude a person from a licensed casino
must be made by the commissioner at a public hearing of which the person to be excluded
must have at least five days' notice. If present at the hearing, the person must be permitted
to show cause why the exclusion should not be ordered. An appeal of the order may be
made in the same manner as other appeals under sections 14.63 to 14.68.
new text end

new text begin Subd. 3. new text end

new text begin Reasonable time to cure. new text end

new text begin The commissioner may not issue an order under
this subdivision unless the commissioner has granted the person who is the subject of the
order a reasonable amount of time to cure the violation or condition giving rise to the order
and, in the commissioner's reasonable judgment, the person has failed to do so.
new text end

new text begin Subd. 4. new text end

new text begin Prohibitions. new text end

new text begin It is a gross misdemeanor for a person named in an exclusion
order to enter, attempt to enter, or be on the premises of a licensed casino while the order
is in effect, and for a casino licensee knowingly to permit an excluded person to enter or
be on the premises.
new text end

new text begin Subd. 5. new text end

new text begin Exclusions by casino. new text end

new text begin A casino licensee may eject and exclude from the
casino premises any person who is in violation of any state law or commissioner's rule
or order or who is a threat to the integrity of gaming or the public safety. A person so
excluded from the casino premises may appeal the exclusion to the commissioner and
must be given a public hearing on the appeal upon request. At the hearing the person
must be given the opportunity to show cause why the exclusion should not have been
ordered. If the commissioner after the hearing finds that the integrity of gambling and the
public safety do not justify the exclusion, the commissioner shall order the casino licensee
making the exclusion to reinstate or readmit the person. An appeal of a commissioner's
order upholding the exclusion is governed by sections 14.63 to 14.68.
new text end

Sec. 12.

new text begin [349B.081] DETENTION OF SUSPECTS.
new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin The commissioner, an agent of the commissioner, or a
security officer who is licensed under Minnesota Rules, chapter 7878, and is employed by
a casino licensee, may detain a person if probable cause exists to believe that the person
detained has violated section 609.76 while at a casino authorized by this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Circumstances justifying detention. new text end

new text begin (a) A person may be detained to:
new text end

new text begin (1) require the person to provide identification or to verify identification;
new text end

new text begin (2) inquire as to whether the person possesses any contraband as provided by section
new text begin 609.762, subdivision 1 new text end ;
new text end

new text begin (3) notify a peace officer of the alleged violation; or
new text end

new text begin (4) institute criminal proceedings against the person.
new text end

new text begin (b) The person detained must be promptly informed of the purpose of the detention
and may not be subjected to unnecessary or unreasonable force, nor to interrogation
against the person's will. If at any time the person detained requests the licensee to
summon a peace officer, the licensee must notify a peace officer immediately. A casino
licensee must not detain a person for more than one hour unless a peace officer requests
detention, in which case the person may be detained until the peace officer has accepted
custody of or released the person.
new text end

new text begin Subd. 3. new text end

new text begin Arrest. new text end

new text begin Upon a charge being made by a licensee, a peace officer may arrest
a person without a warrant if the officer has probable cause to believe that the person has
committed or attempted to commit an offense described in section 609.76.
new text end

new text begin Subd. 4. new text end

new text begin Immunity. new text end

new text begin No casino licensee or peace officer is criminally or civilly liable
for any detention authorized by this section if probable cause exists for the detention, and
the detention was not conducted with unreasonable force or in bad faith.
new text end

Sec. 13.

new text begin [349B.085] MINORS PROHIBITED.
new text end

new text begin A person under the age of 18 years may not enter, play a game at, or win a prize
from, a casino licensed under this chapter.
new text end

Sec. 14.

new text begin [349B.09] AUDIT.
new text end

new text begin The commissioner shall take all actions the commissioner determines necessary,
including appointment of one or more on-site auditors who are employees of the
Department of Public Safety, to ensure adequate accounting and auditing of funds and
finances of the casino. The commissioner shall arrange with the licensee for an annual
outside audit of the casino's financial operations. The commissioner shall assess to the
licensee all costs incurred by the commissioner in complying with this section.
new text end

Sec. 15.

new text begin [349B.10] PAYMENT TO STATE.
new text end

new text begin Subdivision 1. new text end

new text begin Tax imposed. new text end

new text begin There is imposed a tax on gaming conducted at the
casino under this chapter at the rate of 25 percent of adjusted gross receipts.......
new text end

new text begin Subd. 2. new text end

new text begin Payment. new text end

new text begin The casino licensee must make payments of the tax due under
subdivision 1 to the commissioner in monthly installments. The casino licensee must
make payments for each month within 30 days after the end of the month. Payments under
this subdivision must be made in a manner and on a form prescribed by the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin Revenue. new text end

new text begin Revenue collected by the commissioner under this section must
be deposited in the state treasury and credited to the general fund.
new text end

Sec. 16.

new text begin [349B.11] COMPULSIVE GAMBLING HOTLINE POSTING.
new text end

new text begin A casino licensee must post prominently at locations throughout the casino, in a
manner approved by the commissioner of human services, the toll-free telephone number
established by the commissioner of human services in connection with the compulsive
gambling program.
new text end

Sec. 17.

new text begin [349B.12] LOCAL LICENSE.
new text end

new text begin Except as specifically provided otherwise by law, no political subdivision may
require a license to operate a casino, regulate or restrict gaming authorized at a casino, or
impose a tax or fee on the conduct of gaming authorized at the casino.
new text end

Sec. 18.

Minnesota Statutes 2006, section 541.20, is amended to read:

541.20 RECOVERY OF MONEY LOST.

Every person who, by playing at cards, dice, or other game, or by betting on the hands
or sides of such as are gambling, shall lose to any person so playing or betting any sum of
money or any goods, and pays or delivers the same, or any part thereof, to the winner,
may sue for and recover such money by a civil action, before any court of competent
jurisdiction. For purposes of this section, gambling shall not include pari-mutuel wagering
conducted under a license issued pursuant to chapter 240, purchase or sale of tickets in the
state lottery, or gambling authorized under deleted text begin chapters deleted text end new text begin chapter new text end 349 deleted text begin and deleted text end new text begin , new text end 349A new text begin , or 349B new text end .

Sec. 19.

Minnesota Statutes 2006, section 541.21, is amended to read:

541.21 COMMITMENTS FOR GAMBLING DEBT VOID.

Every note, bill, bond, mortgage, or other security or conveyance in which the whole
or any part of the consideration shall be for any money or goods won by gambling or
playing at cards, dice, or any other game whatever, or by betting on the sides or hands
of any person gambling, or for reimbursing or repaying any money knowingly lent or
advanced at the time and place of such gambling or betting, or lent and advanced for any
gambling or betting to any persons so gambling or betting, shall be void and of no effect
as between the parties to the same, and as to all persons except such as hold or claim
under them in good faith, without notice of the illegality of the consideration of such
contract or conveyance. The provisions of this section shall not apply to: (1) pari-mutuel
wagering conducted under a license issued pursuant to chapter 240; (2) purchase of tickets
in the state lottery under chapter 349A; (3) gaming activities conducted pursuant to the
Indian Gaming Regulatory Act, 25 U.S.C. 2701 et seq.; deleted text begin or deleted text end (4) lawful gambling activities
permitted under chapter 349 new text begin ; or (5) gaming licensed under chapter 349B new text end .

Sec. 20.

Minnesota Statutes 2006, section 609.75, subdivision 3, is amended to read:

Subd. 3.

What are not bets.

The following are not bets:

(1) A contract to insure, indemnify, guarantee or otherwise compensate another for a
harm or loss sustained, even though the loss depends upon chance.

(2) A contract for the purchase or sale at a future date of securities or other
commodities.

(3) Offers of purses, prizes or premiums to the actual contestants in any bona fide
contest for the determination of skill, speed, strength, endurance, or quality or to the bona
fide owners of animals or other property entered in such a contest.

(4) The game of bingo when conducted in compliance with sections 349.11 to
349.23.

(5) A private social bet not part of or incidental to organized, commercialized,
or systematic gambling.

(6) The operation of equipment or the conduct of a raffle under sections 349.11 to
349.22, by an organization licensed by the Gambling Control Board or an organization
exempt from licensing under section 349.166.

(7) Pari-mutuel betting on horse racing when the betting is conducted under chapter
240.

(8) The purchase and sale of state lottery tickets under chapter 349A.

new text begin (9) Gaming licensed under chapter 349B.
new text end

Sec. 21.

Minnesota Statutes 2006, section 609.761, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin Licensed casino. new text end

new text begin Sections and 609.76 do not prohibit the
operation of a casino licensed under chapter 349B.
new text end

Sec. 22. new text begin CASINO OCCUPATIONAL LICENSES.
new text end

new text begin The commission shall establish by rule a schedule of fees, not exceeding $100
per year, for casino occupational licenses. License payments must be deposited in the
general fund.
new text end

ARTICLE 2

THREE-STADIUM FUNDING FOR TWINS, GOPHERS, AND VIKINGS

Section 1.

Minnesota Statutes 2006, section 272.02, is amended by adding a
subdivision to read:

new text begin Subd. 85. new text end

new text begin Property taxes. new text end

new text begin Real or personal property acquired, owned, leased,
controlled, used, or occupied as a stadium by the Twins, Vikings, or Gophers, or a casino,
convention center, monorail system, and parking facilities under this act is exempt from
taxation but the property is subject to special assessments levied by a political subdivision
under chapter 429. The stadium includes parking facilities and land necessary to and part
of the use of the stadium. A use of the property in any manner different from its use as
a stadium must not be considered in determining the special benefit under chapter 429
received by the properties. Notwithstanding section 272.01, subdivision 2, or 273.19, real
or personal property on the premises of the stadium leased by a local public partner that
operates the stadium to another person or entity for uses directly related to the operation of
the stadium is exempt from taxation regardless of the length of the lease.
new text end

Sec. 2. new text begin DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin The definitions in this section apply in this article.
new text end

new text begin Subd. 2. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of finance.
new text end

new text begin Subd. 3. new text end

new text begin Regents. new text end

new text begin "Regents" means the Board of Regents of the University of
Minnesota, as the public governing body having control of the University of Minnesota
Football Gophers.
new text end

Sec. 3. new text begin USE OF CASINO REVENUES.
new text end

new text begin (a) Upon opening of the permanent casino, before any distribution of casino net
revenues, the licensee shall annually pay to the following:
new text end

new text begin (1) the Red Lake, White Earth, and Leech Lake tribes collectively, three percent of
the adjusted gross receipts, increasing to six percent when the complex's $3,000,000,000
light rail obligation is met;
new text end

new text begin (2) Canterbury Park, one percent of the receipts, increasing by .25 percent in 2011
and each year thereafter until capping at three percent;
new text end

new text begin (3) the Horsemen's Benevolent and Protective Association, one percent of the
receipts;
new text end

new text begin (4) the University of Minnesota, $10,000,000 annually for 20 years for use in the
financing of a football stadium for the Minnesota Gophers;
new text end

new text begin (5) the city of Eagan, one percent of the receipts;
new text end

new text begin (6) Dakota County, one percent of the receipts;
new text end

new text begin (7) for use as a subsidy for light rail operating costs, the Metropolitan Council,
$10,000,000, with $2,000,000 annual increases until capping at $30,000,000; and
new text end

new text begin (8) an amount equal to 50 percent of the real estate taxes paid each calendar
year to each owner of a single-family residence or townhouse in the city of Eagan that
is owner-occupied.
new text end

new text begin (b) One hundred percent of casino net revenues will be used to finance and retire
the debt related to the construction of an entertainment complex to be located within the
boundaries of Highway 13, Cedar/77, the Minnesota River, and Yankee Doodle Road. The
complex will contain a theme park with a construction cost not less than $2,700,000,000;
eight hotels with a total of 7,200 rooms; a convention facility with a construction cost not
less than $500,000,000; numerous theaters, cinemas, nightclubs, and restaurants located
within a stylized theatrical "Old Chicago" and "Bourbon Street" area; an entertainment
and sports museum; an RV park and picnic area; a 50-acre botanical garden serving as a
buffer between the complex and the city; a monorail system connecting all components
with a complex transit station, parking structures, and a light rail connection between the
complex and the Mall of America; the permanent casino as well as.............. Additionally,
casino net revenues will contribute a total of $650,000,000 toward construction of a sports
stadium for use by the Minnesota Vikings and $650,000,000 toward construction of a
sports stadium for use by the Minnesota Twins. Each stadium must contain a retractable
roof. The Hennepin County sales tax enacted to fund the sports stadium for use by the
Minnesota Twins is repealed.
new text end

new text begin (c) A temporary casino will be located in the Silver Belle Commons Building located
within the site and will operate during the complex construction period.
new text end

new text begin (d) The Metropolitan Council will acquire all properties within the boundaries of the
complex site with the exception of the Seneca sewage treatment facility. The council will
be reimbursed from net casino revenues prior to the use of any funds for construction.
Title of the acquired parcels will transfer to the limited partnership upon payment from
casino revenues.
new text end

new text begin One hundred percent of the complex's net revenues, exclusive of gaming, will be
used to pay for any deficit in the result of a deficiency in gaming revenues; thereafter 50
percent will be paid to the Metropolitan Council for use in the construction of future light
rail and commuter rail up to a complex aggregate maximum of $3,000,000,000; five
percent will be paid to each of the following charitable concerns: the Association of Hole
in the Wall Camps, the Michael J. Fox Foundation, the Tiger Woods Foundation, Hole
in the Wall Clinics for Children, the National Multiple Sclerosis Society, the Minnesota
Zoo, and the Minnesota State Arts Board. Five percent will be awarded in the form of
grants for the benefit of Minnesota citizens. A 15-member committee will be appointed
by and serve at the pleasure of the governor and will receive applications for the grants
and make recommendations for the annual awards with final approval by the governor.
The complex's chief financial officer will be responsible for administering the committee
and receiving the applications for processing. Upon retirement of the stadium bonds
and complex debt, 100 percent of the casino net gaming revenues will be paid to the
Metropolitan Council and credited toward the complex's aggregate obligation to provide a
total of $3,000,000,000 in rail funding. Upon reaching the light rail cap, ten percent of the
complex's net revenues, exclusive of gaming, will be paid to each of the seven previously
identified charitable entities and 20 percent will be awarded in grants for the benefit of
Minnesota citizens. In the event that any or all of the charitable entities ceases to exist
or refuses the funding, the percentages will be added to the amount awarded each year
in grants.
new text end

new text begin Simultaneously, the state will receive 100 percent of the net gaming revenues after
deducting expenses and the mandatory percentages paid to participants. The complex will
receive no compensation for managing the gaming operations.
new text end