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Minnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

  

                         Laws of Minnesota 1985 

                        CHAPTER 212-S.F.No. 1249 
           An act relating to horse racing; making certain 
          technical and clarifying amendments; providing for 
          certain name changes; modifying certain license 
          revocation and suspension procedures; modifying the 
          amounts deducted by the licensee for purses; 
          appropriating money; amending Minnesota Statutes 1984, 
          sections 240.01, subdivision 10; 240.02, subdivision 
          5; 240.03; 240.04; 240.05, subdivision 2; 240.06, 
          subdivision 2; 240.08, subdivisions 1 and 5; 240.09, 
          subdivisions 2, 3, and 6; 240.13, subdivisions 5 and 
          6; 240.14, subdivision 1; 240.15, subdivisions 5 and 
          6; 240.16, subdivisions 1 and 6; 240.18; 240.22; 
          240.24; 240.25, subdivisions 1 and 4; 240.29; 541.20; 
          and 541.21; repealing Minnesota Statutes 1984, section 
          624.02.  
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1984, section 240.01, 
subdivision 10, is amended to read:  
    Subd. 10.  [RACING DAY.] "Racing day" is a day assigned by 
the commission as a racing day, and on which racing is conducted.
    Sec. 2.  Minnesota Statutes 1984, section 240.02, 
subdivision 5, is amended to read:  
    Subd. 5.  [ACTIONS.] The commission may sue and be sued in 
its own name but no action may be brought against the commission 
or any of its members for actions taken in good faith in the 
performance of their duties.  Suits and actions may be commenced 
against the commission or any of its members in any court of 
competent jurisdiction in this state by the service on the 
secretary of state, in the manner provided in Minnesota rules of 
court, of any summons, process, or pleadings authorized by the 
laws of this state.  If any summons, process, or pleadings 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 chairman of the commission 
at the current address of the commission.  The executive 
secretary of the commission shall inform the secretary of state 
of the mailing address of the commission and any changes in it. 
The attorney general is the legal counsel for the commission.  
    Sec. 3.  Minnesota Statutes 1984, 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 Laws 1983, chapter 214;
    (3) to enforce all laws and rules governing horse racing;  
    (4) to collect and distribute all taxes provided for in 
Laws 1983, chapter 214;  
    (5) to conduct necessary investigations and inquiries and 
compel the submission of information, documents, and records 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 Laws 1983, 
chapter 214;  
    (8) to determine the number of racing dates days to be held 
in the state and at each track licensed racetrack;  
    (9) to take all necessary steps to ensure the integrity of 
racing in Minnesota.  
    Sec. 4.  Minnesota Statutes 1984, section 240.04, is 
amended to read:  
    240.04 [EMPLOYEES.] 
    Subdivision 1.  [EXECUTIVE SECRETARY DIRECTOR.] The 
commission shall appoint an executive secretary director, who is 
its chief administrative officer and who serves at its pleasure 
in the unclassified service.  He shall devote full time to his 
perform the following duties, which are:  
    (a) to take and preserve records of all proceedings before 
the commission, maintain its books, documents, and records, and 
make them available for public inspection as the commission 
directs;  
    (b) if so designated by the commission, to act as a hearing 
officer in hearings which need not be conducted under the 
Administrative Procedure Act to conduct hearings, receive 
testimony and exhibits, and certify the record of proceedings to 
the commission;  
    (c) to act as the commission's chief personnel officer and 
supervise the employment, conduct, duties, and discipline of 
commission employees; and 
    (d) to perform other duties as directed by the commission.  
    Subd. 1a.  [DEPUTY DIRECTOR.] The commission may appoint a 
deputy director who serves in the unclassified service at the 
commission's pleasure. 
    Subd. 2.  [INSPECTOR DIRECTOR OF PARI-MUTUELS.] The 
commission may employ an inspector a director of pari-mutuels 
who serves in the unclassified service at the commission's 
pleasure.  He shall, while employed by the commission, devote 
full time to his perform the following duties, which are:  
    (a) to supervise all forms of pari-mutuel betting on horse 
racing in the state;  
    (b) to inspect all machinery;  
    (c) to make reports on pari-mutuel betting as the 
commission directs;  
    (d) subject to commission approval, to appoint deputy 
inspectors assistants to perform duties the commission 
designates; and 
    (e) to perform other duties as directed by the commission.  
    If no inspector director of pari-mutuels is appointed his 
duties are assigned to the executive secretary director.  The 
commission may contract with outside services or personnel to 
assist the executive secretary director in the performance of 
these duties. 
    Subd. 3.  [CHIEF DIRECTOR OF RACING SECURITY.] The 
commission may appoint a chief director of racing security to 
serve in the unclassified service at the commission's pleasure.  
He shall devote full time to his duties while employed by the 
commission.  The chief director of racing security shall enforce 
all laws and commission rules relating to the security and 
integrity of racing.  He and all other persons designated by the 
commission as security officers have free and open access to all 
areas of all facilities the commission licenses and may search 
without a search warrant any part of a licensed racetrack and 
the person of any licensee of the commission on the premises.  
The chief director of racing security may order a licensee to 
take, at the licensee's expense, security measures he determines 
necessary to protect the integrity of racing, but the order may 
be appealed to the commission.  Nothing in chapter 240 prohibits 
law enforcement authorities and agents from entering, in the 
performance of their duties, a premises licensed under Laws 
1983, chapter 214.  
    If no chief director of racing security is appointed his 
duties are assigned to the executive secretary director.  The 
commission may contract with outside services or personnel to 
assist the executive secretary director in the performance of 
these duties.  
    Subd. 4.  [MEDICAL SERVICES VETERINARIAN.] The commission 
may appoint a medical officer veterinarian who must be a doctor 
of veterinary medicine and who serves at its pleasure in the 
unclassified service.  He shall, while employed by the 
commission, devote full time to his perform the following duties 
, which are:  
    (a) to supervise the formulation, administration, and 
evaluation of all medical tests the commission's rules require 
or authorize;  
    (b) to advise the commission on all aspects of veterinary 
medicine relating to its powers and duties; and 
    (c) to supervise all personnel involved in medical testing, 
subject to the supervision of the executive secretary director.  
    The commission may obtain medical services as required by 
contract with an institution which teaches animal health 
sciences within the state.  If no medical officer veterinarian 
is appointed, his duties may be assigned to the 
executive secretary director.  The commission may contract with 
outside personnel to assist the executive director in the 
performance of these duties.  
     Subd. 5.  [OTHER EMPLOYEES.] Subject to applicable laws, 
the commission shall employ and assign duties to other officers, 
employees, and agents as it deems necessary to discharge its 
functions.  
     Subd. 6.  [COMPENSATION.] The compensation of all 
commission employees shall be as provided in chapter 43A.  
     Subd. 7.  [ASSISTANCE.] The commission may request 
assistance from any department or agency of the state in 
fulfilling its duties, and shall make appropriate reimbursement 
for all such assistance.  
    Sec. 5.  Minnesota Statutes 1984, section 240.05, 
subdivision 2, is amended to read:  
    Subd. 2.  [FORMS.] All application forms for licenses must 
contain a statement to the effect that by accepting a license 
from the commission a licensee consents to having his property 
or person subject to inspection at any time by the 
chief director of racing security or by security officers 
designated by the commission.  
    Sec. 6.  Minnesota Statutes 1984, section 240.06, 
subdivision 2, is amended to read:  
    Subd. 2.  [HEARINGS.] Before granting a class A license 
application the commission shall conduct one or more public 
hearings in the area where the racetrack is or will be located. 
The commission shall also request comments on the application 
from the city council or town board of the city or town where 
the track is or will be located, or from the county board if it 
is to be located outside a city or town and from the appropriate 
regional development commission or the metropolitan council, as 
the case may be.  
    Sec. 7.  Minnesota Statutes 1984, section 240.08, 
subdivision 1, is amended to read:  
    Subdivision 1.  [AUTHORITY.] The commission may issue class 
C occupational licenses to persons who wish to be employed in 
horse racing where pari-mutuel betting is conducted as:  
    (a) horse owners or lessees;  
    (b) jockeys or drivers;  
    (c) exercise workers riders;  
    (d) grooms;  
    (e) trainers and their assistants;  
    (f) pari-mutuel personnel;  
    (g) security officers;  
    (h) other occupations the commission by rule determines 
require licensing to ensure the integrity of horse racing in 
Minnesota.  
    Sec. 8.  Minnesota Statutes 1984, section 240.08, 
subdivision 5, is amended to read:  
    Subd. 5.  [REVOCATION AND SUSPENSION.] The 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, or 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 the 
suspension may be appealed to the commission according to its 
rules.  
    A license revocation or suspension for more than 30 days is 
a contested case under sections 14.57 to 14.70 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 30 days 
prior to a contested case hearing where it is necessary to 
insure the integrity of racing.  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 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. 9.  Minnesota Statutes 1984, section 240.09, 
subdivision 2, is amended to read:  
    Subd. 2.  [OCCUPATIONAL LICENSES.] A person who 
participates in the management or conduct of horse racing or 
pari-mutuel betting for a county fair holding a class D license 
who is in an occupation listed in section 240.08, subdivision 1, 
or the rules of the commission must have a class C license from 
the commission except for active members, as defined in section 
349.12, of nonprofit organizations who act without compensation 
as concession workers or pari-mutuel clerks.  
    Sec. 10.  Minnesota Statutes 1984, section 240.09, 
subdivision 3, is amended to read:  
    Subd. 3.  [HEARING.] Before granting an initial application 
for a class D license, the commission must hold at least one 
public hearing in the county where the license is to be issued, 
and if the racetrack to be licensed is within a city, it must 
also request comments on the application from the city council.  
    Sec. 11.  Minnesota Statutes 1984, section 240.09, 
subdivision 6, is amended to read:  
    Subd. 6.  [REVOCATION AND SUSPENSION.] Revocation and 
suspension of class D licenses, and refusals to renew class D 
licenses, are as provided in section 240.06, subdivision 7.  A 
license suspension or revocation or a refusal to renew a class D 
license is a contested case under sections 14.57 to 14.70 14.69 
of the Administrative Procedure Act and is in addition to 
criminal penalties imposed for a violation of law or rule.  
     Sec. 12.  Minnesota Statutes 1984, section 240.13, 
subdivision 5, is amended to read:  
    Subd. 5.  [PURSES.] From the amounts deducted from all 
pari-mutuel pools by a licensee, an amount equal to not less 
than five percent of all money in all pools must be set aside by 
the licensee and used for purses for races conducted by him.  
The commission may by rule provide for the administration and 
enforcement of this subdivision.  
     Sec. 13.  Minnesota Statutes 1984, section 240.13, 
subdivision 6, is amended to read:  
    Subd. 6.  [TELEVISED RACES.] The commission may by rule 
permit a class B or class D licensee to conduct on the premises 
of the licensed racetrack pari-mutuel betting on horse races run 
in other states and broadcast by television on the premises.  
All provisions of law governing pari-mutuel betting apply to 
pari-mutuel betting on televised races except as otherwise 
provided in this subdivision or in the commission's rules. 
Pari-mutuel pools conducted on such televised races may consist 
only of money bet on the premises and may not be commingled with 
any other pool off the premises, except that:  
    (a) the licensee may pay a fee to the person or entity 
conducting the race for the privileges of conducting pari-mutuel 
betting on the race, and 
    (b) the licensee may pay the costs of transmitting the 
broadcast of the race.  
    Pari-mutuel betting on a televised race may be conducted 
only on a racing day assigned by the commission.  The takeout 
and taxes on pari-mutuel pools on televised races are as 
provided for other pari-mutuel pools.  All televised races under 
this subdivision must comply with the Interstate Horse Racing 
Act of 1978 as found in United States Code, title 15, section 
3001 and the following relevent relevant sections.  
    Sec. 14.  Minnesota Statutes 1984, section 240.14, 
subdivision 1, is amended to read: 
    Subdivision 1.  [ASSIGNMENT OF RACING DAYS.] The commission 
shall assign racing days to each racetrack licensee authorized 
to conduct racing with pari-mutuel betting, and a licensee may 
conduct racing with pari-mutuel betting only on a racing day 
assigned by the commission.  The commission may assign racing 
days for up to three years beyond the year in which the 
assignment is made.  Assignments of racing days in any year must 
be made by July 1 December 31 of the previous year, except that 
days may be assigned after that date to a licensee whose license 
is issued after that date.  
    Sec. 15.  Minnesota Statutes 1984, section 240.15, 
subdivision 5, is amended to read: 
    Subd. 5.  [UNREDEEMED TICKETS.] Not later than 100 days 
after the end of a racing meeting a licensee who sells 
pari-mutuel tickets must remit to the commission or its 
representative an amount equal to the total value of unredeemed 
tickets from the racing meeting.  The remittance must be 
accompanied by a detailed statement of the money on a form the 
commission prescribes.  
    Notwithstanding any provision to the contrary in chapter 
345, unredeemed pari-mutuel tickets shall not be considered 
unclaimed funds and shall be handled in accordance with the 
provisions of this subdivision.  Any person claiming to be 
entitled to the proceeds of any unredeemed ticket who fails to 
claim said proceeds prior to their being remitted to the 
commission, may within one year after the date of remittance to 
the commission file with the commission a verified claim for 
such proceeds on such form as the commission prescribes along 
with the pari-mutuel ticket.  Unless the claimant satisfactorily 
establishes the right to the proceeds, the claim shall be 
rejected.  If the claim is allowed, the commission shall pay the 
proceeds without interest to the claimant.  There is hereby 
appropriated from the general fund to the commission an amount 
sufficient to make payment to persons entitled to such proceeds. 
    Sec. 16.  Minnesota Statutes 1984, section 240.15, 
subdivision 6, is amended to read:  
    Subd. 6.  [DISPOSITION OF PROCEEDS.] The commission shall 
distribute all money received under this section, and all money 
received from license fees and fines it collects, as follows: 
all money designated for deposit in the Minnesota breeders fund 
must be paid into that fund for distribution under section 18 
240.18.  Revenue from an additional 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.  All other revenues received under this 
section by the commission, and all license fees, fines, and 
other revenue it receives, must be paid to the state treasurer 
for deposit in the general fund.  
    Sec. 17.  Minnesota Statutes 1984, 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 
chairman.  At least two stewards for all races either shall be 
employees of the commission and they 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 $500 and license 
suspensions not exceeding 30 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. 18.  Minnesota Statutes 1984, section 240.16, 
subdivision 6, is amended to read:  
    Subd. 6.  [COMPENSATION.] The total compensation of 
stewards who are not employees of the division commission must 
be commensurate with the compensation of stewards who 
are division not commission employees.  
    Sec. 19.  Minnesota Statutes 1984, section 240.18, is 
amended to read: 
    240.18 [BREEDERS BREEDERS' FUND.] 
    The commission shall establish a Minnesota breeders 
breeders' fund with the money paid to it under section 240.15, 
subdivision 1.  The commission, after paying the current costs 
of administering the fund, shall distribute the available net 
proceeds as follows: 
    (1) Twenty percent of the available money in the fund must 
be expended as grants for equine research and related education 
at public institutions of post-secondary learning within the 
state.  
    (2) After deducting the amount for (1), the balance of the 
available proceeds shall be apportioned into categories 
corresponding with the various breeds of horses which are racing 
at licensed Minnesota racetracks, in proportion to each 
category's contribution to the fund.  The available funds in 
each category may be expended by the commission to:  
    (a) supplement purses for races held exclusively for 
Minnesota-bred, Minnesota-foaled, or Minnesota-owned horses 
until January 1, 1988, and for Minnesota-bred and 
Minnesota-foaled horses after that date;  
    (b) pay breeders breeders' or owners owners' awards to the 
breeders or owners of Minnesota-bred horses which win money at 
licensed racetracks in the state; and 
    (c) provide other financial incentives to encourage the 
horse breeding industry in Minnesota. 
    The commission shall adopt rules governing the distribution 
of the fund.  The commission may establish advisory committees 
to advise it on the distribution of money under this section, 
provided that the members of an advisory committee shall serve 
without compensation. 
    Sec. 20.  Minnesota Statutes 1984, section 240.22, is 
amended to read: 
    240.22 [FINES.] 
    The 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 forwarded to the state 
treasurer for deposit in the general fund.  A fine in excess of 
$500 is a contested case under the Administrative Procedure Act. 
    Sec. 21.  Minnesota Statutes 1984, section 240.24, is 
amended to read: 
    240.24 [MEDICATION.] 
    Subdivision 1.  [RULES.] The commission shall make and 
enforce rules governing medication and medical testing for 
horses running at licensed racetracks.  The rules must provide 
that no medication, as the commission defines that term by rule, 
may be administered to a horse within 48 hours of a race it runs 
at a licensed racetrack.  The commission shall by rule establish 
the qualifications for laboratories used by it as testing 
laboratories to enforce its rules under this section.  
    Subd. 2.  [FEES.] The commission shall establish by rule a 
fee or schedule of fees to recover the costs of medical testing 
of horses running at racetracks licensed by the commission.  
Fees charged for the testing of horses shall not exceed $30 per 
horse.  Fee receipts shall be deposited in the state treasury 
and credited to the equine drug testing account in the special 
revenue fund. 
    Sec. 22.  Minnesota Statutes 1984, section 240.25, 
subdivision 1, is amended to read:  
    Subdivision 1.  [ILLEGAL BETS.] No person may place or 
accept a bet as defined in section 609.75 on or off the premises 
of a licensed racetrack other than a bet made within a licensed 
with an approved pari-mutuel system.  
    Sec. 23.  Minnesota Statutes 1984, section 240.25, 
subdivision 4, is amended to read: 
    Subd. 4.  [TAMPERING WITH HORSES.] No person may:  
    (a) on the premises of a licensed racetrack use, have in 
his possession with intent to use, or knowingly assist another 
person in using a battery or buzzer, electrical or mechanical, 
or other device or appliance, which can be used to affect a 
horse's racing condition or performance, other than an ordinary 
whip;  
    (b) affect or attempt to affect the racing condition or 
performance of a horse at a race or workout through the use of a 
drug or medication in violation of the commission's rules; or 
    (c) use any method, injurious or otherwise, to affect a 
horse's racing condition or performance at a race or workout in 
violation of the commission's rules.  
    Sec. 24.  Minnesota Statutes 1984, section 240.29, is 
amended to read: 
    240.29 [REQUIRED RACES.] 
    Each holder of a class B or D license must declare and 
schedule, on each racing day it conducts, at least one race 
which: 
    (a) before January 1, 1986 1988, is limited to horses which 
are Minnesota-bred, Minnesota-foaled, or Minnesota-owned, and 
    (b) on and after January 1, 1986 1988, is limited to horses 
which are Minnesota-bred or Minnesota-foaled. 
    If there is not a sufficient number of such horses entered 
in the declared race to make up an adequate slate of entries, 
another similarly restricted race may be substituted. 
    The commission shall by rule define "Minnesota-bred," 
"Minnesota-foaled," and "Minnesota-owned." 
    Sec. 25.  Minnesota Statutes 1984, 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, or gambling authorized under chapter 349. 
    Sec. 26.  Minnesota Statutes 1984, 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 pari-mutuel wagering conducted 
under a license issued pursuant to chapter 240. 
    Sec. 27.  [REPEALER.] 
    Minnesota Statutes 1984, section 624.02, is repealed.  
    Sec. 28.  [EFFECTIVE DATE.] 
    Sections 1 to 13 and 15 to 27 are effective the day 
following final enactment.  Section 14 is effective August 1, 
1985. 
    Approved May 23, 1985