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HF 1793

1st Engrossment - 89th Legislature (2015 - 2016) Posted on 03/25/2015 12:31pm

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

Bill Text Versions

Engrossments
Introduction Posted on 03/12/2015
1st Engrossment Posted on 03/19/2015

Current Version - 1st Engrossment

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A bill for an act
relating to horse racing; modifying and providing definitions; clarifying
commission powers and duties; modifying and providing for licensure
requirements and other regulatory provisions; providing for industry-related
revenue; amending Minnesota Statutes 2014, sections 240.01, subdivision
22, by adding subdivisions; 240.011; 240.03; 240.08, subdivisions 2, 4, 5;
240.10; 240.13, subdivisions 5, 6; 240.135; 240.15, subdivisions 1, 6; 240.16,
subdivision 1; 240.22; 240.23; 364.09; repealing Minnesota Statutes 2014,
section 240.01, subdivisions 12, 23.

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

Section 1.

Minnesota Statutes 2014, section 240.01, subdivision 22, is amended to read:


Subd. 22.

Racing season.

"Racing season" means that portion of the calendar
year starting at the beginning of the day of the first live horse race conducted by the
licensee and concluding at the end of the day of the last live horse race conducted by
the licensee in any year.

deleted text begin For purposes of this chapter, the racing season begins before the first Saturday in
May and continues for not less than 25 consecutive weeks.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2016.
new text end

Sec. 2.

Minnesota Statutes 2014, section 240.01, is amended by adding a subdivision
to read:


new text begin Subd. 28. new text end

new text begin Takeout. new text end

new text begin "Takeout" means the total amount of money, excluding
breakage, withheld from each pari-mutuel pool, as authorized by statute or rule.
new text end

Sec. 3.

Minnesota Statutes 2014, section 240.01, is amended by adding a subdivision
to read:


new text begin Subd. 29. new text end

new text begin Handle new text end

new text begin "Handle" means the aggregate of all pari-mutuel pools, excluding
refundable wagers or cancellations.
new text end

Sec. 4.

Minnesota Statutes 2014, section 240.01, is amended by adding a subdivision
to read:


new text begin Subd. 30. new text end

new text begin Mixed meet. new text end

new text begin "Mixed meet" means a racing day or series of racing days
on which the racing of more than one breed of horse occurs.
new text end

Sec. 5.

Minnesota Statutes 2014, section 240.01, is amended by adding a subdivision
to read:


new text begin Subd. 31. new text end

new text begin Banked. new text end

new text begin "Banked" means any game of chance that is played with the
house as a participant in the game, where the house takes on all players, collects from all
losers, and pays all winners, and the house can win.
new text end

Sec. 6.

Minnesota Statutes 2014, section 240.01, is amended by adding a subdivision
to read:


new text begin Subd. 32. new text end

new text begin Steward. new text end

new text begin A "steward" means an official described in section 240.16. The
term steward includes the terms "judge," "chief steward," and "presiding judge," and
applies to stewards and judges of the commission or a class B licensee, but not to other
racing officials, such as paddock or placement judges, who are employees or agents of
a class B licensee.
new text end

Sec. 7.

Minnesota Statutes 2014, section 240.011, is amended to read:


240.011 APPOINTMENT OF DIRECTOR.

The governor shall appoint the director of the Minnesota Racing Commission,
who serves in the unclassified service at the governor's pleasure. The director must be
a person qualified by experience deleted text beginin the administration and regulation of pari-mutuel
racing
deleted text endnew text begin and training to possess the skills necessarynew text end to discharge the duties of the director.
The governor must select a director from a list of one or more names submitted by the
Minnesota Racing Commission.

Sec. 8.

Minnesota Statutes 2014, section 240.03, is amended to read:


240.03 COMMISSION POWERS AND DUTIES.

The commission has the following powers and duties:

(1) to regulate horse racing in Minnesota to ensure that it is conducted in the public
interest;

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

(3) to enforce all laws and rules governing horse racing;

(4) to collect and distribute all taxes provided for in this chapter;

(5) to conduct necessary investigations and inquiries and new text beginto issue subpoenas to
new text endcompel new text beginthe attendance of witnesses and new text endthe submission of information, documents, deleted text beginanddeleted text end
recordsnew text begin, and other evidencenew text end it deems necessary to carry out its duties;

(6) to supervise the conduct of pari-mutuel betting on horse racing;

(7) to employ and supervise personnel under this chapter;

(8) to determine the number of racing days to be held in the state and at each
licensed racetrack;

(9) to take all necessary steps to ensure the integrity of racing in Minnesota; and

(10) to impose fees on the racing and card playing industries sufficient to recover the
operating costs of the commission with the approval of the legislature according to section
16A.1283. Notwithstanding section 16A.1283, when the legislature is not in session, the
commissioner of management and budget may grant interim approval for any new fees
or adjustments to existing fees that are not statutorily specified, until such time as the
legislature reconvenes and acts upon the new fees or adjustments. As part of its biennial
budget request, the commission must propose changes to its fees that will be sufficient to
recover the operating costs of the commission.

Sec. 9.

Minnesota Statutes 2014, section 240.08, subdivision 2, is amended to read:


Subd. 2.

Application.

new text begin(a) new text endAn application for a class C license must be on a form
the commission prescribes and must be accompanied by an affidavit of qualification
that the applicant:

deleted text begin (a)deleted text endnew text begin (1)new text end is not in default in the payment of an obligation or debt to the state under
Laws 1983, chapter 214;

deleted text begin (b)deleted text endnew text begin (2)new text end 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;

deleted text begin (c)deleted text endnew text begin (3)new text end is not and never has been connected with or engaged in an illegal business;

deleted text begin (d)deleted text endnew text begin (4)new text end has never been found guilty of fraud or misrepresentation in connection
with racing or breeding;

deleted text begin (e)deleted text endnew text begin (5)new text end has never been found guilty of a violation of law or rule relating to horse
racing, pari-mutuel betting or any other form of gambling which is a serious violation
as defined by the commission's rules; and

deleted text begin (f)deleted text endnew text begin (6)new text end has never new text beginbeen found to have new text endknowingly violated deleted text begina rule ordeleted text endnew text begin annew text end order of the
commission or a law new text beginor rule new text endof Minnesotanew text begin or another jurisdictionnew text end relating to new text beginhorse new text endracingnew text begin,
pari-mutuel betting, or any other form of gambling
new text end.

new text begin (b) new text endThe 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 commission.

Sec. 10.

Minnesota Statutes 2014, section 240.08, subdivision 4, is amended to read:


Subd. 4.

License issuance and renewal.

If the commission 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 racing in
Minnesota, it may issue a class C license to the applicant. If it makes a similar finding
for a renewal of a class C license it may renew the license. Class C licenses are effective
fornew text begin a minimum ofnew text end one yearnew text begin for all class C licenses, and up to three years for certain
classifications of class C licenses to be determined by the commission
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

Sec. 11.

Minnesota Statutes 2014, section 240.08, subdivision 5, is amended to read:


Subd. 5.

Revocation and suspension.

new text begin(a) new text endThe commission may revoke a class C
license for a violation of law or rule which in the commission's opinion adversely affects
the integrity of horse racing in Minnesota, new text beginthe public health, welfare, or safety, new text endor for an
intentional false statement made in a license application.

The commission may suspend a class C license for up to one year for a violation of
law, order or rule.

The commission may delegate to its designated agents the authority to impose
suspensions of class C licenses, and thenew text begin revocation ornew text end suspension new text beginof a class C license new text endmay
be appealed to the commission according to its rules.

new text begin (b) new text endA 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 commission 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 racingnew text begin or to protect the public health, welfare, or safetynew text end.
A contested case hearing must be held within deleted text begin20deleted text endnew text begin 30new text end days of the summary suspension and
the administrative law judge's report must be issued within deleted text begin20deleted text endnew text begin 30new text end days from the close of
the hearing record. In all cases involving summary suspension the commission 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.

Sec. 12.

Minnesota Statutes 2014, section 240.10, is amended to read:


240.10 LICENSE FEES.

The fee for a class A license is $253,000 per year and must be remitted on July 1.
The fee for a class B license is $500 for each assigned racing day and $100 for each day
on which simulcasting is authorized and must be remitted on July 1. deleted text beginIncluded herein are
all days assigned to be conducted after January 1, 2003.
deleted text end The fee for a class D license is
$50 for each assigned racing day on which racing is actually conducted. Fees imposed on
class D licenses must be paid to the commission at a time and in a manner as provided by
rule of the commission.

The commission shall by rule establish an annual license fee for each occupation it
licenses under section 240.08 deleted text beginbut no annual fee for a class C license may exceed $100deleted text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

Sec. 13.

Minnesota Statutes 2014, section 240.13, subdivision 5, is amended to read:


Subd. 5.

Purses.

(a) From the amounts deducted from all pari-mutuel pools by a
licensee, an amount equal to not less than the following percentages of all money in all
pools must be set aside by the licensee and used for purses for races conducted by the
licensee, provided that a licensee may agree by contract with an organization representing
a majority of the horsepersons racing the breed involved to set aside amounts in addition
to the following percentagesnew text begin, if the contract is in writing and filed with the commissionnew text end:

(1) for live races conducted at a class A facility, deleted text beginand for races that are part of full
racing card simulcasting that takes place within the time period of the live races,
deleted text end 8.4
percentnew text begin of handlenew text end;

deleted text begin (2) for simulcasts conducted during the racing season other than as provided for in
clause (1), 50 percent of the takeout remaining after deduction for taxes on pari-mutuel
pools, payment to the breeders fund, and payment to the sending out-of-state racetrack for
receipt of the signal; and
deleted text end

deleted text begin (3)deleted text endnew text begin (2)new text end for simulcasts conducted deleted text beginoutside of the racing season, 25deleted text endnew text begin any day a class A
facility is licensed, not less than 37
new text end percent of the takeout remaining after deduction for the
state pari-mutuel tax, payment to the breeders fund, new text beginand new text endpayment to the sending out-of-state
racetrack for receipt of the signal deleted text beginand, before January 1, 2005, a further deduction of
eight percent of all money in all pools. In the event that wagering on simulcasts outside
of the racing season exceeds $125 million in any calendar year, the amount set aside for
purses by this formula is increased to 30 percent on amounts between $125,000,000 and
$150,000,000 wagered; 40 percent on amounts between $150,000,000 and $175,000,000
wagered; and 50 percent on amounts in excess of $175,000,000 wagered. In lieu of
the eight percent deduction, A deduction as agreed to between the licensee and the
horsepersons' organization representing the majority of horsepersons racing at the licensee's
class A facility during the preceding 12 months, is allowed after December 31, 2004
deleted text end.

The commission may by rule provide for the administration and enforcement of
this subdivision. The deductions for payment to the sending out-of-state racetrack must
be actual, except that when there exists any overlap of ownership, control, or interest
between the sending out-of-state racetrack and the receiving licensee, the deduction
must not be greater than three percent unless agreed to between the licensee and the
horsepersons' organization representing the majority of horsepersons racing the breed
racing the majority of races during the existing racing meeting or, if outside of the racing
season, during the most recent racing meeting.

deleted text begin In lieu of the amount the licensee must pay to the commission for deposit in the
Minnesota breeders fund under section 240.15, subdivision 1,
deleted text end The licensee shall paynew text begin to the
commission for deposit in the Minnesota breeders fund
new text end 5-1/2 percent of the takeout from
all pari-mutuel pools generated by wagering at the licensee's facility on deleted text beginfull racing carddeleted text end
simulcasts of races not conducted in this state.

(b) From the money set aside for purses, the licensee shall pay to the horseperson's
organization representing the majority of the horsepersons racing the breed involved
and contracting with the licensee with respect to purses and the conduct of the racing
meetings and providing representationnew text begin to its membersnew text end,new text begin an amount as may be determined
by agreement by the licensee and the horsepersons' organization sufficient to provide
new text end
benevolent programs, benefits, and services for horsepersons and their on-track employeesdeleted text begin,
an amount, sufficient to perform these services, as may be determined by agreement by
the licensee and the horseperson's organization
deleted text end. The amount paid may be deducted only
from the money set aside for purses to be paid in races for the breed represented by the
horseperson's organization. With respect to racing meetings where more than one breed
is racing, the licensee may contract independently with the horseperson's organization
representing each breed racing.

(c) Notwithstanding sections 325D.49 to 325D.66, a horseperson's organization
representing the majority of the horsepersons racing a breed at a meeting, and the members
thereof, may agree to withhold horses during a meeting.

deleted text begin (d) Money set aside for purses from wagering, during the racing season, on
simulcasts must be used for purses for live races conducted at the licensee's class A facility
during the same racing season, over and above the 8.4 percent purse requirement or any
higher requirement to which the parties agree, for races conducted in this state. Money
set aside for purses from wagering, outside of the racing season, on simulcasts must be
for purses for live races conducted at the licensee's class A facility
deleted text end deleted text begin during the next racing
season, over and above the 8.4 percent purse requirement or any higher requirement to
which the parties agree, for races conducted in this state.
deleted text end

deleted text begin (e)deleted text endnew text begin (d)new text end Money set aside for purses from wagering on simulcasts must be used for
purses for live races involving the same breed involved in the simulcast except that money
set aside for purses and payments to the breeders fund from wagering on deleted text beginfull racing carddeleted text end
simulcasts of races not conducted in this state, occurring during a live mixed meet, must
be allotted to the purses and breeders fund for each breed participating in the mixed meet
new text beginas agreed upon by the breed organizations participating in the live mixed meet. The
agreement shall be in writing and filed with the commission prior to the first day of the live
mixed meet. In the absence of a written agreement filed with the commission, the money
set aside for purses and payments to the breeders fund from wagering on simulcasts,
occurring during a live mixed meet, shall be allotted to each breed participating in the live
mixed meet
new text end in the same proportion that the number of live races run by each breed bears
to the total number of live races conducted during the period of the mixed meet.

deleted text begin (f)deleted text endnew text begin (e)new text end The allocation of money set aside for purses to particular racing meets may be
adjusted, relative to overpayments and underpayments, by contract between the licensee
and the horsepersons' organization representing the majority of horsepersons racing the
breed involved at the licensee's facility.

deleted text begin (g)deleted text endnew text begin (f)new text end Subject to the provisions of this chapter, money set aside from pari-mutuel
pools for purses must be for the breed involved in the race that generated the pool, except
that if the breed involved in the race generating the pari-mutuel pool is not racing in the
current racing meeting, or has not raced within the preceding 12 months at the licensee's
class A facility, money set aside for purses may be distributed proportionately to those
breeds that have run during the preceding 12 months or paid to the commission and
used for purses or to promote racing for the breed involved in the race generating the
pari-mutuel pool, or both, in a manner prescribed by the commission.

deleted text begin (h)deleted text endnew text begin (g)new text end This subdivision does not apply to a class D licensee.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2016.
new text end

Sec. 14.

Minnesota Statutes 2014, section 240.13, subdivision 6, is amended to read:


Subd. 6.

Simulcasting.

(a) The commission may permit an authorized licensee to
conduct simulcasting at the licensee's facility on any day authorized by the commission.
All simulcasts must comply with the Interstate Horse Racing Act of 1978, United States
Code, title 15, sections 3001 to 3007.

(b) The commission may not authorize any day for simulcasting at a class A facility
during the racing season, and a licensee may not be allowed to transmit out-of-state
telecasts of races the licensee conducts, unless the licensee has obtained the approval of
the horsepersons' organization representing the majority of the horsepersons racing the
breed involved at the licensed racetrack during the preceding 12 months. In the case of
a class A facility licensed under section 240.06, subdivision 5a, the approval applicable
to the first year of the racetrack's operation may be obtained from the horsepersons'
organization that represents the majority of horsepersons who will race the breed involved
at the licensed racetrack during the first year of the racetrack's operation.

(c) The licensee may pay fees and costs to an entity transmitting a telecast of a
race to the licensee for purposes of conducting pari-mutuel wagering on the race. The
licensee may deduct fees and costs related to the receipt of televised transmissions from a
pari-mutuel pool on the televised race, provided that one-half of any amount recouped in
this manner must be added to the amounts required to be set aside for purses.

(d) With the approval of the commission and subject to the provisions of this
subdivision, a licensee may transmit telecasts of races it conducts, for wagering purposes,
to locations outside the state, and the commission may allow this to be done on a
commingled pool basis.

(e) Except as otherwise provided in this section, simulcasting may be conducted on a
deleted text beginseparatedeleted text endnew text begin comminglednew text end pool basis or, with the approval of the commission, on a deleted text begincommingleddeleted text endnew text begin
separate
new text end pool basis. All provisions of law governing pari-mutuel betting apply to
simulcasting except as otherwise provided in this subdivision or in the commission's
rules. If pools are commingled, wagering at the licensed facility must be on equipment
electronically linked with the equipment at the licensee's class A facility or with the
sending racetrack via the totalizator computer at the licensee's class A facility. Subject to
the approval of the commission, the types of betting, takeout, and distribution of winnings
on commingled pari-mutuel pools are those in effect at the sending racetrack. Breakage
for pari-mutuel pools on a televised race must be calculated in accordance with the law or
rules governing the sending racetrack for these pools, and must be distributed in a manner
agreed to between the licensee and the sending racetrack. Notwithstanding subdivision 7
and section 240.15, subdivision 5, the commission may approve procedures governing the
definition and disposition of unclaimed tickets that are consistent with the law and rules
governing unclaimed tickets at the sending racetrack. For the purposes of this section,
"sending racetrack" is either the racetrack outside of this state where the horse race is
conducted or, with the consent of the racetrack, an alternative facility that serves as the
racetrack for the purpose of commingling pools.

(f) Except as otherwise provided in section 240.06, subdivision 5b, paragraph (2),
if there is more than one class B licensee conducting racing within the seven-county
metropolitan area, simulcasting may be conducted only on races run by a breed that ran at
the licensee's class A facility within the 12 months preceding the event.

Sec. 15.

Minnesota Statutes 2014, section 240.135, is amended to read:


240.135 CARD CLUB REVENUE.

(a) From the amounts received from charges authorized under section 240.30,
subdivision 4
, the licensee shall set aside the amounts specified in this section to be
used for purse payments. These amounts are in addition to the breeders fund and purse
requirements set forth elsewhere in this chapter.

(1) For amounts between zero and $6,000,000, the licensee shall set aside new text beginnot less
than
new text endten percent to be used as purses.

(2) For amounts in excess of $6,000,000, the licensee shall set aside new text beginnot less than
new text end14 percent to be used as purses.

(b) From all amounts set aside under paragraph (a), the licensee shall set aside
ten percent to be deposited in the breeders fund. deleted text beginThe licensee and the horseperson's
organization representing the majority of horsepersons who have raced at the racetrack
during the preceding 12 months may negotiate percentages different from those stated in
this section if the agreement is in writing and filed with the Racing Commission.
deleted text end

(c) It is the intent of the legislature that the proceeds of the card playing activities
authorized by this chapter be used to improve the horse racing industry by improving purses.new text begin
The licensee and the horseperson's organization representing the majority of horsepersons
who have raced at the racetrack during the preceding 12 months may negotiate percentages
that exceed those stated in this section if the agreement is in writing and filed with the
commission.
new text end The commission shall annually review the financial details of card playing
activities and determine if the present use of card playing proceeds is consistent with the
policy established by this paragraph. If the commission determines that the use of the
proceeds does not comply with the policy set forth herein, then the commission shall direct
the parties to make the changes necessary to ensure compliance. If these changes require
legislation, the commission shall make the appropriate recommendations to the legislature.

Sec. 16.

Minnesota Statutes 2014, section 240.15, subdivision 1, is amended to read:


Subdivision 1.

Taxes imposed.

(a) There is imposed a tax at the rate of six percent
of the amount in excess of $12,000,000 annually withheld from all pari-mutuel pools by
the licensee, including breakage and amounts withheld under section 240.13, subdivision
4
. For the purpose of this subdivision, "annually" is the period from July 1 to June 30 of
the next year.

In addition to the above tax, the licensee must designate and pay to the commission
a tax of one percent of the deleted text begintotal amount bet on each racing daydeleted text endnew text begin handle for live races
conducted at a class A facility
new text end, for deposit in the Minnesota breeders fund.

The taxes imposed by this clause must be paid from the amounts permitted to be
withheld by a licensee under section 240.13, subdivision 4.

(b) The commission may impose an admissions tax of not more than ten cents on
each paid admission at a licensed racetrack on a racing day if:

(1) the tax is requested by a local unit of government within whose borders the
track is located;

(2) a public hearing is held on the request; and

(3) the commission finds that the local unit of government requesting the tax is in
need of its revenue to meet extraordinary expenses caused by the racetrack.

Sec. 17.

Minnesota Statutes 2014, 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 deleted text beginfull racing carddeleted text end 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.

Sec. 18.

Minnesota Statutes 2014, section 240.16, subdivision 1, is amended to read:


Subdivision 1.

Powers and duties.

All horse races run at a licensed racetrack must
be presided over by a board of three stewards, who must be appointees of the commission or
persons approved by it. The commission shall designate one steward as chair. At least two
stewards for all races either shall be employees of the commission who shall serve in the
unclassified service, or shall be under contract with the commission to serve as stewards.
The commission may delegate the following duties and powers to a board of stewards:

(a) to ensure that races are run in accordance with the commission's rules;

(b) to supervise the conduct of racing to ensure the integrity of the sport;

(c) to settle disputes arising from the running of horse races, and to certify official
results;

(d) to impose on licensees, for violation of law or commission rules, fines not
exceeding deleted text begin$2,000deleted text endnew text begin $5,000new text end and license suspensions not exceeding 90 days;

(e) to recommend to the commission where warranted penalties in excess of those
in clause (d);

(f) to otherwise enforce the laws and rules of racing; and

(g) to perform other duties and have other powers assigned by the commission.

Sec. 19.

Minnesota Statutes 2014, section 240.22, is amended to read:


240.22 FINES.

new text begin (a) new text endThe commission shall by rule establish a graduated schedule of civil fines for
violations of laws related to horse racing or of the commission's rules. The schedule
must include minimum and maximum fines for each violation and be based on and
reflect the culpability, frequency and severity of the violator's actions. The commission
may impose a fine from this schedule on a licensee for a violation of those rules or laws
relating to horse racing. The fine is in addition to any criminal penalty imposed for the
same violation. Fines imposed by the commission must be paid to the commission and
new text beginexcept as provided in paragraph (b), new text endforwarded to the commissioner of management and
budget for deposit in the general fund. A fine in excess of deleted text begin$2,000deleted text endnew text begin $5,000new text end is a contested
case under the Administrative Procedure Act.

new text begin (b) If the commission is the prevailing party in a contested case proceeding, the
commission may recover, from amounts to be forwarded under paragraph (a), reasonable
attorney fees and costs associated with the contested case.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2016.
new text end

Sec. 20.

Minnesota Statutes 2014, section 240.23, is amended to read:


240.23 RULEMAKING AUTHORITY.

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

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

(b) deleted text beginwiredeleted text endnew text begin wired and wirelessnew text end communications between the premises of a licensed
racetrack and any place outside the premises;

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

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

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

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

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

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

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

new text begin (j) procedures for the sampling and testing of any horse that is eligible to race in
Minnesota for substances or practices that are prohibited by law or rule; and
new text end

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 21.

Minnesota Statutes 2014, section 364.09, is amended to read:


364.09 EXCEPTIONS.

(a) This chapter does not apply to the licensing process for peace officers; to law
enforcement agencies as defined in section 626.84, subdivision 1, paragraph (f); to fire
protection agencies; to eligibility for a private detective or protective agent license; to the
licensing and background study process under chapters 245A and 245C;new text begin to the licensing
and background investigation process under chapter 240;
new text end to eligibility for school bus
driver endorsements; to eligibility for special transportation service endorsements; to
eligibility for a commercial driver training instructor license, which is governed by section
171.35 and rules adopted under that section; to emergency medical services personnel, or
to the licensing by political subdivisions of taxicab drivers, if the applicant for the license
has been discharged from sentence for a conviction within the ten years immediately
preceding application of a violation of any of the following:

(1) sections 609.185 to 609.2114, 609.221 to 609.223, 609.342 to 609.3451, or
617.23, subdivision 2 or 3; or Minnesota Statutes 2012, section 609.21;

(2) any provision of chapter 152 that is punishable by a maximum sentence of
15 years or more; or

(3) a violation of chapter 169 or 169A involving driving under the influence, leaving
the scene of an accident, or reckless or careless driving.

This chapter also shall not apply to eligibility for juvenile corrections employment, where
the offense involved child physical or sexual abuse or criminal sexual conduct.

(b) This chapter does not apply to a school district or to eligibility for a license
issued or renewed by the Board of Teaching or the commissioner of education.

(c) Nothing in this section precludes the Minnesota Police and Peace Officers
Training Board or the state fire marshal from recommending policies set forth in this
chapter to the attorney general for adoption in the attorney general's discretion to apply to
law enforcement or fire protection agencies.

(d) This chapter does not apply to a license to practice medicine that has been denied
or revoked by the Board of Medical Practice pursuant to section 147.091, subdivision 1a.

(e) This chapter does not apply to any person who has been denied a license to
practice chiropractic or whose license to practice chiropractic has been revoked by the
board in accordance with section 148.10, subdivision 7.

(f) This chapter does not apply to any license, registration, or permit that has
been denied or revoked by the Board of Nursing in accordance with section 148.261,
subdivision 1a.

(g) This chapter does not supersede a requirement under law to conduct a criminal
history background investigation or consider criminal history records in hiring for
particular types of employment.

Sec. 22. new text beginREVISOR'S INSTRUCTION.
new text end

new text begin (a) The revisor of statutes shall renumber the subdivisions in Minnesota Statutes,
section 240.01, to put the definitions contained in that section in alphabetical order.
new text end

new text begin (b) The revisor of statutes shall correct any cross-references in Minnesota Statutes
and Minnesota Rules as a result of the renumbering in paragraph (a).
new text end

Sec. 23. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, section 240.01, subdivisions 12 and 23, new text end new text begin are repealed.
new text end