Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

SF 2377

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

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

Current Version - as introduced

  1.1                          A bill for an act 
  1.2             relating to gambling; proposing an amendment to the 
  1.3             Minnesota Constitution to authorize casino gaming 
  1.4             conducted at a single land-based gaming establishment 
  1.5             operated by a nonprofit organization; dedicating the 
  1.6             net revenues of casino gaming to statewide property 
  1.7             tax relief; regulating the establishment and operation 
  1.8             of this gaming establishment; providing appointments; 
  1.9             amending Minnesota Statutes 1994, sections 541.20; 
  1.10            541.21; and 609.761, by adding a subdivision; 
  1.11            proposing coding for new law as Minnesota Statutes, 
  1.12            chapter 349C. 
  1.13  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.14     Section 1.  [CONSTITUTIONAL AMENDMENT PROPOSED.] 
  1.15     The following amendment to the Minnesota Constitution is 
  1.16  proposed to the people. 
  1.17     If the amendment is adopted, article XIII, section 5 of the 
  1.18  Minnesota Constitution will read as follows: 
  1.19     Sec. 5.  The legislature shall not authorize any lottery or 
  1.20  the sale of lottery tickets, other than authorizing a lottery 
  1.21  and sale of lottery tickets for a lottery operated by the state, 
  1.22  or casino gaming conducted at a single land-based gaming 
  1.23  establishment operated by a nonprofit organization, the net 
  1.24  revenues of which are dedicated to statewide property tax relief.
  1.25     Sec. 2.  [SUBMISSION TO VOTERS.] 
  1.26     The proposed amendment shall be submitted to the people at 
  1.27  the 1996 general election.  The question submitted shall be: 
  1.28     "Shall the Minnesota Constitution be amended to authorize 
  1.29  casino gaming at a single land-based gaming establishment 
  2.1   operated by a nonprofit organization, the net revenues of which 
  2.2   are dedicated to statewide property tax relief? 
  2.3                                      Yes .......
  2.4                                      No ........"
  2.5      Sec. 3.  [349C.001] [LEGISLATIVE INTENT; LAND-BASED CASINO 
  2.6   GAMING ACTIVITIES.] 
  2.7      The legislature hereby finds and determines to be the 
  2.8   public policy of the state: 
  2.9      (1) that the most desirable method of promoting economic 
  2.10  development and maintaining public confidence in the integrity 
  2.11  of casino gaming operations is to regulate ownership interests 
  2.12  in operations of the casino gaming operator such that the owner 
  2.13  or operator has no incentive to: 
  2.14     (a) divert or skim revenues; 
  2.15     (b) engage in illegal activities or to reduce competition 
  2.16  from other gaming entities; 
  2.17     (c) conduct land-based gaming operations so as to prevent 
  2.18  guests from patronizing local businesses other than the official 
  2.19  gaming establishment; 
  2.20     (2) that all persons involved with the proposed casino 
  2.21  gaming operation shall be regulated and controlled in such a 
  2.22  manner as to accomplish and promote these public policies and, 
  2.23  in general, to protect the public health, safety, morals, good 
  2.24  order, and general welfare of our citizens; and 
  2.25     (3) that the most effective method of obtaining the public 
  2.26  policies and objectives described in this section is to provide 
  2.27  for the operation of a single official land-based gaming 
  2.28  establishment in a city of the first class by a nonprofit 
  2.29  nongovernmental entity as a contractor of and with the 
  2.30  commission so that the state derives revenues from the gaming 
  2.31  operations in lieu of levying a tax upon the proceeds from 
  2.32  operation of a large number of casinos. 
  2.33     Sec. 4.  [349C.01] [DEFINITIONS.] 
  2.34     Subdivision 1.  [TERMS.] For the purposes of this chapter, 
  2.35  the terms defined in this section have the meanings given them.  
  2.36     Subd. 2.  [PERSON.] "Person" is an individual, firm, 
  3.1   association, partnership, limited liability partnership, limited 
  3.2   liability company, corporation, trustee, or legal 
  3.3   representative, and any licensee, participant, or patron.  
  3.4      Subd. 3.  [CASINO GAMING OPERATOR, CASINO OPERATOR, OR 
  3.5   OPERATOR.] "Casino gaming operator," "casino operator," or 
  3.6   "operator" means a person who enters into a casino operating 
  3.7   contract with the commission requiring that the person conduct 
  3.8   casino gaming operations according to this chapter. 
  3.9      Subd. 4.  [CASINO GAMING OPERATIONS.] "Casino gaming 
  3.10  operations" means any gaming operations offered or conducted at 
  3.11  or in the official gaming establishment. 
  3.12     Subd. 5.  [OFFICIAL GAMING ESTABLISHMENT.] "Official gaming 
  3.13  establishment" means the building or facility located in a city 
  3.14  of the first class at which the conduct of casino gaming 
  3.15  operations is authorized. 
  3.16     Subd. 6.  [COMMISSION.] "Commission" is the Minnesota 
  3.17  casino gaming commission.  
  3.18     Sec. 5.  [349C.02] [APPOINTMENT OF DIRECTOR.] 
  3.19     The governor shall appoint the director of the Minnesota 
  3.20  casino gaming commission, who serves in the unclassified service 
  3.21  at the governor's pleasure.  The director must be a person 
  3.22  qualified by experience in the administration and regulation of 
  3.23  casino gaming to discharge the duties of the director.  The 
  3.24  governor must select a director from a list of one or more names 
  3.25  submitted by the Minnesota casino gaming commission.  
  3.26     Sec. 6.  [349C.03] [CASINO GAMING COMMISSION.] 
  3.27     Subdivision 1.  [COMMISSION.] A Minnesota casino gaming 
  3.28  commission is established with the powers and duties specified 
  3.29  in this section.  The commission consists of nine members 
  3.30  appointed by the governor with the advice and consent of the 
  3.31  senate.  Not more than five of the members may belong to the 
  3.32  same political party.  The governor shall designate the chair of 
  3.33  the commission.  Appointments by the governor are for terms of 
  3.34  six years.  An appointment to fill a vacancy in an unexpired 
  3.35  term is for the remainder of the term and is with the advice and 
  3.36  consent of the senate.  
  4.1      Subd. 2.  [QUALIFICATIONS.] A member of the commission must 
  4.2   have been a resident of Minnesota for at least five years before 
  4.3   appointment and must have a background and experience as would 
  4.4   qualify for membership on the commission.  A member must, before 
  4.5   taking a place on the commission, file a bond in the principal 
  4.6   sum of $100,000 payable to the state, conditioned upon the 
  4.7   faithful performance of duties.  No commissioner, nor any member 
  4.8   of the commissioner's immediate family residing in the same 
  4.9   household, may hold a license issued by the commission or have a 
  4.10  direct or indirect financial interest in a corporation, 
  4.11  partnership, or association that holds a license issued by the 
  4.12  commission.  
  4.13     Subd. 3.  [COMPENSATION.] The compensation of commission 
  4.14  members for each day spent on commission activities, when 
  4.15  authorized by the commission, shall be the same as compensation 
  4.16  provided for other members of boards and commissions under 
  4.17  section 15.0575, subdivision 3, plus expenses in the same manner 
  4.18  and amount as provided in the commissioner's plan adopted 
  4.19  according to section 43A.18, subdivision 2.  
  4.20     Subd. 4.  [REMOVAL; VACANCIES.] The removal of commission 
  4.21  members is as provided in section 15.0575.  
  4.22     Subd. 5.  [ACTIONS.] The commission may sue and be sued in 
  4.23  its own name but no action may be brought against the commission 
  4.24  or any of its members for actions taken in good faith in the 
  4.25  performance of its duties.  Suits and actions may be commenced 
  4.26  against the commission or any of its members in any court of 
  4.27  competent jurisdiction in this state by service, in the manner 
  4.28  provided in Minnesota rules of court, of any summons, process, 
  4.29  or pleadings authorized by the laws of this state.  The attorney 
  4.30  general is the legal counsel for the commission.  
  4.31     Subd. 6.  [ANNUAL REPORT.] The commission shall on February 
  4.32  15 of each year submit a report to the governor and legislature 
  4.33  on its activities, organizational structure, receipts and 
  4.34  disbursements, and recommendations for changes in the laws 
  4.35  relating to casino gaming.  
  4.36     Subd. 7.  [AUDIT.] The legislative auditor shall audit or 
  5.1   the commission may contract for an audit of the books and 
  5.2   accounts of the commission annually or as often as the 
  5.3   legislative auditor's funds and personnel permit.  The 
  5.4   commission shall pay the total cost of the audit.  All 
  5.5   collections received for the audits must be deposited in the 
  5.6   general fund.  
  5.7      Sec. 7.  [349C.04] [COMMISSION POWERS AND DUTIES.] 
  5.8      The commission has the following powers and duties:  
  5.9      (1) to regulate casino gaming in Minnesota to ensure that 
  5.10  it is conducted in the public interest; 
  5.11     (2) to enforce all laws and rules governing casino gaming; 
  5.12     (3) to collect and deposit net revenue from casino gaming 
  5.13  operations; 
  5.14     (4) to conduct necessary investigations and inquiries and 
  5.15  compel the submission of information, documents, and records it 
  5.16  deems necessary to carry out its duties; 
  5.17     (5) to supervise the conduct of casino gaming; 
  5.18     (6) to employ and supervise personnel under this chapter; 
  5.19  and 
  5.20     (7) to take all necessary steps to ensure the integrity of 
  5.21  casino gaming in Minnesota.  
  5.22     Sec. 8.  [349C.05] [EMPLOYEES.] 
  5.23     Subdivision 1.  [DIRECTOR; DUTIES.] The director shall 
  5.24  perform the following duties:  
  5.25     (a) take and preserve records of all proceedings before the 
  5.26  commission; maintain its books, documents, and records; and make 
  5.27  them available for public inspection as the commission directs; 
  5.28     (b) if so designated by the commission, act as a hearing 
  5.29  officer in hearings that need not be conducted under the 
  5.30  administrative procedure act to conduct hearings, receive 
  5.31  testimony and exhibits, and certify the record of proceedings to 
  5.32  the commission; 
  5.33     (c) act as the commission's chief personnel officer and 
  5.34  supervise the employment, conduct, duties, and discipline of 
  5.35  commission employees; and 
  5.36     (d) perform other duties as directed by the commission.  
  6.1      Subd. 2.  [DEPUTY DIRECTOR.] The commission may appoint a 
  6.2   deputy director who serves in the unclassified service at the 
  6.3   commission's pleasure. 
  6.4      Subd. 3.  [DIRECTOR OF SECURITY.] The commission may 
  6.5   appoint a director of security to serve in the unclassified 
  6.6   service at the commission's pleasure.  The director of security 
  6.7   shall enforce all laws and commission rules relating to the 
  6.8   security and integrity of casino gaming.  The director of 
  6.9   security and all other persons designated by the commission as 
  6.10  security officers have free and open access to all areas of the 
  6.11  facility the commission licenses and may search without a search 
  6.12  warrant any part of the licensed casino and the person of any 
  6.13  licensee of the commission on the premises.  The director of 
  6.14  security may order a licensee to take, at the licensee's 
  6.15  expense, security measures necessary to protect the integrity of 
  6.16  casino gaming, but the order may be appealed to the commission.  
  6.17  Nothing in this chapter prohibits law enforcement authorities 
  6.18  and agents from entering, in the performance of their duties, a 
  6.19  premises licensed under this chapter.  
  6.20     If no director of security is appointed, the duties of that 
  6.21  office are assigned to the executive director.  The commission 
  6.22  may contract with outside services or personnel to assist the 
  6.23  executive director in the performance of these duties. 
  6.24     Subd. 4.  [OTHER EMPLOYEES.] Subject to applicable laws, 
  6.25  the commission shall employ and assign duties to other officers, 
  6.26  employees, and agents as it deems necessary to discharge its 
  6.27  functions.  
  6.28     Subd. 5.  [COMPENSATION.] The compensation of all 
  6.29  commission employees shall be as provided in chapter 43A.  
  6.30     Subd. 6.  [ASSISTANCE.] The commission and director may 
  6.31  request assistance from any department or agency of the state in 
  6.32  fulfilling their duties and shall make appropriate reimbursement 
  6.33  for all such assistance.  
  6.34     Sec. 9.  [349C.06] [OFFICIAL GAMING ESTABLISHMENT.] 
  6.35     The official gaming establishment shall be located in a 
  6.36  city of the first class. 
  7.1      Sec. 10.  [349C.07] [CONTRACT TO CONDUCT CASINO GAMING 
  7.2   OPERATIONS; BID SPECIFICATIONS; COMPENSATION OF CASINO GAMING 
  7.3   OPERATOR.] 
  7.4      Subdivision 1.  [AUTHORITY.] Notwithstanding any provision 
  7.5   of law to the contrary, the commission shall publicly advertise, 
  7.6   offer, and let, according to this chapter, a contract to conduct 
  7.7   casino gaming operations at a single official gaming 
  7.8   establishment to be located in a city of the first class.  The 
  7.9   term of the contract and any option to extend or renew may not 
  7.10  exceed a total of 20 years primary term and one ten-year renewal 
  7.11  option.  The contract or renewal option to conduct casino 
  7.12  operations shall not be subject to sale, alienation, assignment, 
  7.13  or transfer by the casino gaming operator except as provided in 
  7.14  this chapter. 
  7.15     Subd. 2.  [BID SPECIFICATIONS.] (a) The commission shall 
  7.16  devise a bid containing specifications and requirements for the 
  7.17  conducting of casino gaming operations it determines will 
  7.18  maximize economic development and revenues to the state from the 
  7.19  operations and accomplish and promote the public policies set 
  7.20  forth in this chapter.  The bid may contain specific 
  7.21  requirements or limitations regarding the structure in which the 
  7.22  gaming establishment is to be located; the location, quantity, 
  7.23  and nature of games and gaming devices; the hours of operation, 
  7.24  security and internal control; the granting of credit to 
  7.25  patrons; acquiescence in rules of the commission; and provisions 
  7.26  providing for reciprocal remedies, rights, and damages upon 
  7.27  breach and cancellation.  The official gaming establishment must 
  7.28  provide at least 100,000 square feet of usable space in a single 
  7.29  structure.  
  7.30     (b) The bid may request and allow consideration of 
  7.31  proposals that provide for construction of different kinds of an 
  7.32  official gaming establishment.  The bid may also request and 
  7.33  allow consideration of proposals that provide for the creation 
  7.34  of specific numbers of jobs; specific services to be provided to 
  7.35  the state, local government, or the commission; investment of 
  7.36  specified amounts in construction and development; and such 
  8.1   other factors or items that the commission considers to be in 
  8.2   furtherance of the objectives of this chapter. 
  8.3      (c) The bid let shall state or list the factors that the 
  8.4   commission will use in evaluating the proposals to conduct 
  8.5   casino gaming operations and the appropriate weight each factor 
  8.6   will receive in selecting the winning proposal.  A proposal that 
  8.7   utilizes an existing facility or structure shall receive the 
  8.8   greatest weight.  Assumptions regarding probable patronage of 
  8.9   the official gaming establishment, revenue or play for each kind 
  8.10  of game or gaming device, estimated payout to patrons, and 
  8.11  expenses of the casino operator may be made and utilized in 
  8.12  determining bid specifications and the award of the contract.  
  8.13  If the assumptions are to be used by the commission in the 
  8.14  evaluation and comparison of the bids submitted, they shall be 
  8.15  stated in the bid. 
  8.16     (d) The commission shall select the bid that in its opinion 
  8.17  accomplishes the objectives of this chapter, including revenue 
  8.18  to the state, as evaluated and weighted according to the terms 
  8.19  of the bid. 
  8.20     Subd. 3.  [EXCLUSIVITY OF CONTRACT.] The casino operating 
  8.21  contract shall provide that the contract is exclusive and that 
  8.22  no other official gaming establishment shall be contracted or 
  8.23  licensed in the term of the casino operating contract or any 
  8.24  renewals or extensions of it. 
  8.25     In addition, the contract shall grant the casino gaming 
  8.26  operator the right of specific performance of the casino 
  8.27  operating contract. 
  8.28     Subd. 4.  [TEMPORARY OPERATIONS.] The bid issued by the 
  8.29  commission and the proposal selected may authorize the casino 
  8.30  operator having the winning proposal to conduct limited 
  8.31  temporary gaming operations in the city of the first class where 
  8.32  the official gaming establishment is to be located, at a 
  8.33  location designated by the casino operator and approved by the 
  8.34  commission.  The conducting of temporary gaming operations may 
  8.35  be considered by the commission in selecting a final proposal.  
  8.36  Temporary gaming operations shall cease upon the commencement of 
  9.1   gaming operations at the official gaming establishment. 
  9.2      Sec. 11.  [349C.08] [CASINO OPERATOR; REQUIREMENTS FOR 
  9.3   MAKING APPLICATION OR BID.] 
  9.4      Subdivision 1.  [DISCLOSURE OF FINANCIAL RESOURCES.] Any 
  9.5   applicant submitting a bid for a contract to conduct casino 
  9.6   gaming operations shall produce information, documentation, and 
  9.7   assurances concerning any holders of indentures, notes, or other 
  9.8   evidences of indebtedness, either in effect or proposed, which 
  9.9   bear any relation to the casino gaming operation proposal 
  9.10  submitted by the applicant or applicants.  The reputation and 
  9.11  integrity of financial sources may be judged upon the same 
  9.12  standards as the applicant.  In addition, the applicant shall 
  9.13  produce whatever information, documentation, or assurances as 
  9.14  may be required to establish by clear and convincing evidence 
  9.15  the adequacy of financial resources both as to the construction 
  9.16  or the completion of renovations or improvements to the official 
  9.17  gaming establishment and the conducting of casino gaming 
  9.18  operations. 
  9.19     Subd. 2.  [DISCLOSURE OF EXPERIENCE.] Each applicant shall 
  9.20  produce such information, documentation, and assurances as may 
  9.21  be required to establish by clear and convincing evidence that 
  9.22  the applicant has sufficient business ability and casino gaming 
  9.23  experience or has available or is capable of obtaining employees 
  9.24  with such experience to establish the person's ability to 
  9.25  conduct casino gaming operations according to this chapter.  The 
  9.26  applicant shall produce the names of all proposed casino key 
  9.27  employees as they become known and a description of their 
  9.28  respective or proposed responsibilities and a full description 
  9.29  of security systems and management controls proposed for the 
  9.30  casino and related facilities. 
  9.31     Subd. 3.  [STATUS AS NONPROFIT ORGANIZATION.] An applicant 
  9.32  shall produce such information, documentation, and assurances as 
  9.33  may be required to establish that the applicant is a nonprofit 
  9.34  organization and will continue to operate as a nonprofit 
  9.35  organization during the term of the casino operating contract. 
  9.36     Sec. 12.  [349C.09] [REQUIREMENTS FOR CASINO OPERATING 
 10.1   CONTRACT.] 
 10.2      (a) Any bid to conduct casino gaming operations by an 
 10.3   applicant shall contain provisions, (narrative or schematic or 
 10.4   both,) describing the management, operation, financial, 
 10.5   internal, and security aspects to the proposed conducting of 
 10.6   casino gaming operations at the official gaming establishment. 
 10.7      (b) The commission shall review each bid required by 
 10.8   paragraph (a) and shall determine whether it conforms to the 
 10.9   requirements of this chapter and to any rules and whether the 
 10.10  system submitted provides adequate and effective controls of the 
 10.11  operation by the person submitting it.  If the board finds any 
 10.12  insufficiencies, it shall declare the bid submitted as 
 10.13  nonconforming. 
 10.14     (c) The bid shall contain provisions describing in detail 
 10.15  the applicant's plans for providing entertainment, including its 
 10.16  food service plans under paragraph (d), clause (1), at the 
 10.17  facility for patrons and the general public. 
 10.18     (d) The casino gaming operator shall not: 
 10.19     (1) offer seated restaurant facilities with table food 
 10.20  service for patrons, but may offer limited cafeteria style food 
 10.21  services for employees and patrons.  No facility for food 
 10.22  service shall exceed seating for 250 persons.  The operator may 
 10.23  provide for a system or concession area where restaurant owners 
 10.24  and food preparers may elect or offer to provide for service, in 
 10.25  the official gaming establishment food services area, food 
 10.26  prepared and offered at their restaurants accompanied by 
 10.27  identification of the restaurant providing the food; 
 10.28     (2) offer lodging in the official gaming establishment, nor 
 10.29  engage in any practice or enter into any business relationship 
 10.30  to give any hotel, whether or not affiliated with the casino 
 10.31  operator, any advantage or preference not available to all 
 10.32  similarly situated hotels.  Any contract between the casino 
 10.33  gaming operator and any hotel or lodging facility must be 
 10.34  submitted to the commission for approval before entering into 
 10.35  the contract; 
 10.36     (3) engage in such activities as are prohibited by the 
 11.1   casino operating contract; and 
 11.2      (4) engage in the sale of products that are not directly 
 11.3   related to gaming. 
 11.4      Sec. 13.  [349C.10] [CONTRACT TO CONDUCT CASINO GAMING 
 11.5   OPERATIONS; OTHER REQUIREMENTS; BREACH OF CONTRACT.] 
 11.6      Subdivision 1.  [GENERAL REQUIREMENTS.] In addition to the 
 11.7   other requirements of this chapter, the casino operating 
 11.8   contract must include provisions requiring the casino operator 
 11.9   to do the following: 
 11.10     (1) be responsible for the providing or improving and 
 11.11  maintaining the official gaming establishment; 
 11.12     (2) provide all furnishings, gaming devices, gaming 
 11.13  supplies, slot machines, equipment, services, and all things 
 11.14  necessary for the conducting of gaming operations at the 
 11.15  official gaming establishment; 
 11.16     (3) conduct gaming operations and provide such other 
 11.17  services as required by the proposal to conduct casino gaming 
 11.18  operations; 
 11.19     (4) provide the necessary personnel to conduct the gaming 
 11.20  operations and such other activities and services as required by 
 11.21  the board and the proposal selected; 
 11.22     (5) be responsible for payment of all expenses of casino 
 11.23  gaming operations and operations of the official gaming 
 11.24  establishment; 
 11.25     (6) provide private security for the detection and 
 11.26  prevention of offenses against the patrons and the orderly 
 11.27  operation of the official gaming establishment; 
 11.28     (7) procure and maintain liability insurance coverage in an 
 11.29  amount to be determined by the board; 
 11.30     (8) indemnify the state and the corporation in the event a 
 11.31  judgment is rendered against either as a result of the actions 
 11.32  of the casino gaming operator or its agents; 
 11.33     (9) provide such other services and goods as otherwise 
 11.34  required by this chapter; 
 11.35     (10) maintain its status as a nonprofit organization during 
 11.36  the term of the contract; and 
 12.1      (11) provide such other things which are, in the opinion of 
 12.2   the commission, necessary to achieve the public policies 
 12.3   provided for in this chapter. 
 12.4      Subd. 2.  [PROVISIONS RELATED TO PERFORMANCE AND REMEDIES.] 
 12.5   The parties to the casino operating contract shall negotiate the 
 12.6   reciprocal terms and elements of default, curative measures, 
 12.7   remedies, and damages. 
 12.8      Subd. 3.  [EFFECT OF CONTRACT.] The casino operating 
 12.9   contract when executed by the commission and the applicant 
 12.10  constitutes the authority of the applicant to conduct the 
 12.11  activities authorized by the contract. 
 12.12     Sec. 14.  [349C.11] [RECEIVERSHIP, BANKRUPTCY; CONTINUED 
 12.13  SUITABILITY.] 
 12.14     The commission shall have the right to set aside or 
 12.15  renegotiate the provisions of any casino operating contract of a 
 12.16  casino operator who is voluntarily or involuntarily placed in 
 12.17  bankruptcy, receivership, conservatorship, or similar status.  
 12.18  The commission may agree in writing to allow the casino operator 
 12.19  to be placed in bankruptcy, receivership, conservatorship, or 
 12.20  other similar status without setting aside, revoking, or 
 12.21  renegotiating the casino operating contract. 
 12.22     As a condition of entering into a casino operating contract 
 12.23  according to this chapter, the casino gaming operator agrees to 
 12.24  maintain the operator's suitability at all times during the 
 12.25  existence of the contract. 
 12.26     Sec. 15.  [349C.12] [CONTRACTS.] 
 12.27     The commission shall by rule require that all contracts 
 12.28  entered into by the casino operator for the provision of goods 
 12.29  or services, including concessions contracts, be subject to 
 12.30  commission approval.  The rules must require that the contract 
 12.31  include an affirmative action plan establishing goals and 
 12.32  timetables consistent with the Minnesota human rights act, 
 12.33  chapter 363.  The rules may also establish goals to provide 
 12.34  economic opportunity for disadvantaged and emerging small 
 12.35  businesses, racial minorities, women, and disabled individuals.  
 12.36  The commission may require a contract holder to submit to it 
 13.1   documents and records the commission deems necessary to evaluate 
 13.2   the contract.  
 13.3      Sec. 16.  [349C.13] [APPEALS.] 
 13.4      Appeals from a decision of the commission must be made in 
 13.5   the manner prescribed by sections 14.63 to 14.68.  
 13.6      Sec. 17.  [349C.14] [RIGHT OF INSPECTION.] 
 13.7      The commission and its representatives, including 
 13.8   representatives of the division of gambling enforcement, have 
 13.9   the right to inspect the premises of the casino operator and to 
 13.10  examine the operator's books and other records at any time 
 13.11  without a search warrant.  
 13.12     Sec. 18.  [349C.15] [FINES.] 
 13.13     The commission shall by rule establish a graduated schedule 
 13.14  of civil fines for violations of laws related to casino gaming 
 13.15  or of the commission's rules.  The schedule must include minimum 
 13.16  and maximum fines for each violation and be based on and reflect 
 13.17  the culpability, frequency, and severity of the violator's 
 13.18  actions.  The commission may impose a fine from this schedule 
 13.19  for a violation of those rules or laws relating to casino 
 13.20  gaming.  The fine is in addition to any criminal penalty imposed 
 13.21  for the same violation.  Fines imposed by the commission must be 
 13.22  paid to the commission and forwarded to the state treasurer for 
 13.23  deposit in the general fund.  A fine in excess of $2,000 is a 
 13.24  contested case under the administrative procedure act. 
 13.25     Sec. 19.  [349C.16] [RULEMAKING AUTHORITY.] 
 13.26     The commission has the authority, in addition to all other 
 13.27  rulemaking authority granted elsewhere in this chapter to adopt 
 13.28  rules governing:  
 13.29     (a) the conduct of casino gaming; 
 13.30     (b) liability insurance that it may require of the casino 
 13.31  operator; 
 13.32     (c) the auditing of the books and records of the casino 
 13.33  operator by an auditor employed or appointed by the commission; 
 13.34     (d) affirmative action in employment and contracting by the 
 13.35  casino operator; and 
 13.36     (e) any other aspect of casino gaming that in its opinion 
 14.1   affects the integrity of gambling or the public health, welfare, 
 14.2   or safety.  
 14.3      Rules of the commission are subject to chapter 14, the 
 14.4   administrative procedure act. 
 14.5      Sec. 20.  [349C.17] [EXCLUSION OF CERTAIN PERSONS.] 
 14.6      Subdivision 1.  [PERSONS EXCLUDED.] The commission may 
 14.7   exclude from the casino a person who:  
 14.8      (a) has been convicted of a felony under the laws of any 
 14.9   state or the United States; 
 14.10     (b) has had a license suspended, revoked, or denied by the 
 14.11  commission or a gambling authority of any other jurisdiction; or 
 14.12     (c) is determined by the commission, on the basis of 
 14.13  evidence presented to it, to be a threat to the integrity of 
 14.14  gambling in Minnesota.  
 14.15     Subd. 2.  [HEARING; APPEAL.] An order to exclude a person 
 14.16  from the casino must be made by the commission at a public 
 14.17  hearing of which the person to be excluded must have at least 
 14.18  five days' notice.  If present at the hearing, the person must 
 14.19  be permitted to show cause why the exclusion should not be 
 14.20  ordered.  An appeal of the order may be made in the same manner 
 14.21  as other appeals under section 349C.13. 
 14.22     Subd. 3.  [NOTICE.] Upon issuing an order excluding a 
 14.23  person from the casino, the commission shall send a copy of the 
 14.24  order to the excluded person and to the casino, along with other 
 14.25  information as it deems necessary to permit compliance with the 
 14.26  order.  
 14.27     Subd. 4.  [PROHIBITIONS.] It is a gross misdemeanor for a 
 14.28  person named in an exclusion order to enter, attempt to enter, 
 14.29  or be on the premises of the casino while it is in effect, and 
 14.30  for a licensee knowingly to permit an excluded person to enter 
 14.31  or be on the premises.  
 14.32     Subd. 5.  [EXCLUSIONS.] The casino operator may eject and 
 14.33  exclude from its premises any person who is in violation of any 
 14.34  state law or commission rule or order or who is a threat to 
 14.35  gambling integrity or the public safety.  A person so excluded 
 14.36  from the premises may appeal the exclusion to the commission and 
 15.1   must be given a public hearing on the appeal upon request.  At 
 15.2   the hearing, the person must be given the opportunity to show 
 15.3   cause why the exclusion should not have been ordered.  If the 
 15.4   commission after the hearing finds that the integrity of 
 15.5   gambling and the public safety do not justify the exclusion, it 
 15.6   shall order the casino operator to reinstate or readmit the 
 15.7   person.  An appeal of a commission order upholding the exclusion 
 15.8   is governed by section 349C.13. 
 15.9      Sec. 21.  [349C.18] [CONFLICT OF INTEREST.] 
 15.10     Subdivision 1.  [FINANCIAL INTEREST.] No person may serve 
 15.11  on or be employed by the commission who has an interest in any 
 15.12  corporation, association, or partnership that holds a license 
 15.13  from the commission or that holds a contract to supply goods or 
 15.14  services to or at the casino, including concessions contracts.  
 15.15  No member or employee of the commission may have a financial 
 15.16  interest in or be employed in a profession or business that 
 15.17  conflicts with the performance of duties as a member or employee.
 15.18     Subd. 2.  [BETTING.] No member or employee of the 
 15.19  commission may bet or cause a bet to be made at the casino while 
 15.20  serving on or being employed by the commission.  
 15.21     Subd. 3.  [VIOLATION.] A violation of subdivisions 1 and 2 
 15.22  is grounds for removal from the commission or termination of 
 15.23  employment.  A bet made directly or indirectly by a licensee in 
 15.24  violation of a rule made by the commission under subdivision 2 
 15.25  is grounds for suspension or revocation of the license. 
 15.26     Sec. 22.  [349C.19] [NET REVENUES TO BE USED FOR PROPERTY 
 15.27  TAX RELIEF.] 
 15.28     The commission shall by rule provide for the collection of 
 15.29  net revenue from casino gaming on a monthly basis.  Net revenue 
 15.30  collected by the commission shall be deposited in the general 
 15.31  fund and credited to a property tax relief account.  The 
 15.32  legislature shall appropriate money from this account to provide 
 15.33  for statewide property tax relief. 
 15.34     Sec. 23.  Minnesota Statutes 1994, section 541.20, is 
 15.35  amended to read: 
 15.36     541.20 [RECOVERY OF MONEY LOST.] 
 16.1      Every person who, by playing at cards, dice, or other game, 
 16.2   or by betting on the hands or sides of such as are gambling, 
 16.3   shall lose to any person so playing or betting any sum of money 
 16.4   or any goods, and pays or delivers the same, or any part 
 16.5   thereof, to the winner, may sue for and recover such money by a 
 16.6   civil action, before any court of competent jurisdiction.  For 
 16.7   purposes of this section, gambling shall not include pari-mutuel 
 16.8   wagering conducted under a license issued pursuant to chapter 
 16.9   240, purchase or sale of tickets in the state lottery, or 
 16.10  gambling authorized under chapters 349 and, 349A, and 349C. 
 16.11     Sec. 24.  Minnesota Statutes 1994, section 541.21, is 
 16.12  amended to read: 
 16.13     541.21 [COMMITMENTS FOR GAMBLING DEBT VOID.] 
 16.14     Every note, bill, bond, mortgage, or other security or 
 16.15  conveyance in which the whole or any part of the consideration 
 16.16  shall be for any money or goods won by gambling or playing at 
 16.17  cards, dice, or any other game whatever, or by betting on the 
 16.18  sides or hands of any person gambling, or for reimbursing or 
 16.19  repaying any money knowingly lent or advanced at the time and 
 16.20  place of such gambling or betting, or lent and advanced for any 
 16.21  gambling or betting to any persons so gambling or betting, shall 
 16.22  be void and of no effect as between the parties to the same, and 
 16.23  as to all persons except such as hold or claim under them in 
 16.24  good faith, without notice of the illegality of the 
 16.25  consideration of such contract or conveyance.  The provisions of 
 16.26  this section shall not apply to:  (1) pari-mutuel wagering 
 16.27  conducted under a license issued pursuant to chapter 240; (2) 
 16.28  purchase of tickets in the state lottery under chapter 349A; (3) 
 16.29  gaming activities conducted pursuant to the Indian Gaming 
 16.30  Regulatory Act, 25 U.S.C. 2701 et seq.; or (4) lawful gambling 
 16.31  activities permitted under chapter 349; or (5) casino gaming 
 16.32  activities conducted under chapter 349C. 
 16.33     Sec. 25.  Minnesota Statutes 1994, section 609.761, is 
 16.34  amended by adding a subdivision to read: 
 16.35     Subd. 3.  [CASINO GAMING.] Sections 609.755 and 609.76 do 
 16.36  not prohibit casino gaming activities authorized under chapter 
 17.1   349C or the manufacture, sale, or offers to sell a gambling 
 17.2   device to the casino gaming operator under chapter 349C. 
 17.3      Sec. 26.  [EFFECTIVE DATE.] 
 17.4      Sections 3 to 25 shall become effective only upon 
 17.5   ratification of the amendment proposed in section 1 as provided 
 17.6   in the Minnesota Constitution. 
 17.7      If the constitutional amendment proposed by section 1 is 
 17.8   ratified by the people, sections 3 to 25 are effective July 1, 
 17.9   1997.