Bill Text: MN SF1451 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Minnesota Vikings stadium and St. Paul Saints ballpark financing; state lottery gaming machines establishment
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Introduced - Dead) 2011-05-20 - Referred to State Government Innovation and Veterans [SF1451 Detail]
Download: Minnesota-2011-SF1451-Introduced.html
1.2relating to gambling; authorizing the director of the State Lottery to establish
1.3gaming machines; imposing a tax on gaming machine revenue; providing
1.4powers and duties to the director; establishing a multi-stadium revenue fund and
1.5dedicating money in the fund for financing and construction of a stadium for the
1.6Minnesota Vikings and a ballpark for the St. Paul Saints;amending Minnesota
1.7Statutes 2010, sections 299L.07, subdivisions 2, 2a; 340A.410, subdivision
1.85; 349A.01, subdivision 10, by adding subdivisions; 349A.10, subdivision
1.93; 349A.13; 541.20; 541.21; 609.75, subdivision 3; 609.761, subdivision 2;
1.10proposing coding for new law in Minnesota Statutes, chapters 297A; 349A.
1.11BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.12 Section 1. [297A.651] LOTTERY GAMING MACHINES; IN-LIEU TAX.
1.13Adjusted gross revenue from the operation of gaming machines authorized under
1.14chapter 349A is exempt from the tax imposed under section 297A.62. The State Lottery
1.15must, on or before the 20th day of each month, transmit to the commissioner an amount
1.16equal to the adjusted gross revenue from the operation of gaming machines, as defined
1.17in section 349A.01, for the previous month multiplied by: (1) 25 percent of annual
1.18adjusted gross revenue generated by the licensee up to $125,000,000; (2) 30 percent
1.19of annual adjusted gross revenue generated by the licensee between $125,000,000 and
1.20$200,000,000; and (3) 40 percent of annual adjusted gross revenue generated by the
1.21licensee in excess of $200,000,000. The commissioner shall deposit the money transmitted
1.22under this section in the state treasury in the multi-stadium revenue fund in section 17.
1.23 Sec. 2. Minnesota Statutes 2010, section 299L.07, subdivision 2, is amended to read:
1.24 Subd. 2. Exclusions. Notwithstanding subdivision 1, a gambling device:
2.1(1) may be sold by a person who is not licensed under this section, if the person (i) is
2.2not engaged in the trade or business of selling gambling devices, and (ii) does not sell
2.3more than one gambling device in any calendar year;
2.4(2) may be sold by the governing body of a federally recognized Indian tribe
2.5described in subdivision 2a, paragraph (b), clause (1), which is not licensed under this
2.6section, if (i) the gambling device was operated by the Indian tribe, (ii) the sale is to
2.7a distributor licensed under this section, and (iii) the licensed distributor notifies the
2.8commissioner of the purchase, in the same manner as is required when the licensed
2.9distributor ships a gambling device into Minnesota;
2.10(3) may be possessed by a person not licensed under this section if the person holds
2.11a permit issued under section299L.08 ; and
2.12(4) may be possessed by a state agency, with the written authorization of the director,
2.13for display or evaluation purposes only and not for the conduct of gambling.; and
2.14(5) may be possessed by the State Lottery as authorized under chapter 349A.
2.15 Sec. 3. Minnesota Statutes 2010, section 299L.07, subdivision 2a, is amended to read:
2.16 Subd. 2a. Restrictions. (a) A manufacturer licensed under this section may sell,
2.17offer to sell, lease, or rent, in whole or in part, a gambling device only to a distributor
2.18licensed under this section or to the State Lottery as authorized under chapter 349A.
2.19(b) A distributor licensed under this section may sell, offer to sell, market, rent,
2.20lease, or otherwise provide, in whole or in part, a gambling device only to:
2.21(1) the governing body of a federally recognized Indian tribe that is authorized
2.22to operate the gambling device under a tribal state compact under the Indian Gaming
2.23Regulatory Act, Public Law 100-497, and future amendments to it;
2.24(2) a person for use in the person's dwelling for display or amusement purposes in a
2.25manner that does not afford players an opportunity to obtain anything of value;
2.26(3) another distributor licensed under this section;or
2.27(4) a person in another state who is authorized under the laws of that state to possess
2.28the gambling device.; or
2.29(5) the State Lottery as authorized under chapter 349A.
2.30 Sec. 4. Minnesota Statutes 2010, section 340A.410, subdivision 5, is amended to read:
2.31 Subd. 5. Gambling prohibited. (a) Except as otherwise provided in this
2.32subdivision, no retail establishment licensed to sell alcoholic beverages may keep, possess,
2.33or operate, or permit the keeping, possession, or operation on the licensed premises of dice
2.34or any gambling device as defined in section349.30 , or permit gambling therein.
3.1(b) Gambling equipment may be kept or operated and raffles conducted on licensed
3.2premises and adjoining rooms when the use of the gambling equipment is authorized by
3.3(1) chapter 349, (2) a tribal ordinance in conformity with the Indian Gaming Regulatory
3.4Act, Public Law 100-497, or (3) a tribal-state compact authorized under section3.9221 .
3.5(c) Lottery tickets may be purchased and sold within the licensed premises as
3.6authorized by the director of the lottery under chapter 349A.
3.7(d) Dice may be kept and used on licensed premises and adjoining rooms as
3.8authorized by section609.761, subdivision 4 .
3.9(e) Gambling devices may be operated on the premises of a licensed racetrack
3.10as authorized by chapter 349A.
3.11 Sec. 5. Minnesota Statutes 2010, section 349A.01, is amended by adding a subdivision
3.12to read:
3.13 Subd. 1a. Adjusted gross gaming machine revenue. "Adjusted gross gaming
3.14machine revenue" means the sum of all money received by the lottery for gaming machine
3.15plays, less the amount paid out in prizes for gaming machine games.
3.16 Sec. 6. Minnesota Statutes 2010, section 349A.01, is amended by adding a subdivision
3.17to read:
3.18 Subd. 6a. Gaming machine. "Gaming machine" means any machine in which a
3.19coin token or other currency is deposited to play a game that uses a video display and
3.20microprocessors.
3.21 Sec. 7. Minnesota Statutes 2010, section 349A.01, is amended by adding a subdivision
3.22to read:
3.23 Subd. 6b. Gaming machine game. "Gaming machine game" means a game
3.24operated by a gaming machine as authorized by the director.
3.25 Sec. 8. Minnesota Statutes 2010, section 349A.01, is amended by adding a subdivision
3.26to read:
3.27 Subd. 6c. Gaming machine play. "Gaming machine play" means an electronic
3.28record that proves participation in a gaming machine game.
3.29 Sec. 9. Minnesota Statutes 2010, section 349A.01, subdivision 10, is amended to read:
3.30 Subd. 10. Lottery procurement contract. "Lottery procurement contract" means a
3.31contract to provide lottery products, gaming machines, maintenance of gaming machines,
4.1computer hardware and software used to monitor sales of lottery tickets and gaming
4.2machine plays, and lottery tickets. "Lottery procurement contract" does not include
4.3a contract to provide an annuity or prize payment agreement or materials, supplies,
4.4equipment, or services common to the ordinary operation of a state agency.
4.5 Sec. 10. Minnesota Statutes 2010, section 349A.10, subdivision 3, is amended to read:
4.6 Subd. 3. Lottery operations. (a) The director shall establish a lottery operations
4.7account in the lottery fund. The director shall pay all costs of operating the lottery,
4.8including payroll costs or amounts transferred to the state treasury for payroll costs, but
4.9not including lottery prizes, from the lottery operating account. The director shall credit to
4.10the lottery operations account amounts sufficient to pay the operating costs of the lottery.
4.11(b) Except as provided in paragraph (e), the director may not credit in any fiscal
4.12year thereafter amounts to the lottery operations account which when totaled exceed
4.13nine percent of gross revenue to the lottery fund in that fiscal year. In computing total
4.14amounts credited to the lottery operations account under this paragraph the director shall
4.15disregard amounts transferred to or retained by lottery retailers as sales commissions or
4.16other compensation and amounts transferred or retained by a racetrack under a location
4.17contract under section 349A.17.
4.18(c) The director of the lottery may not expend after July 1, 1991, more than 2-3/4
4.19percent of gross revenues in a fiscal year for contracts for the preparation, publication, and
4.20placement of advertising.
4.21(d) Except as the director determines, the lottery is not subject to chapter 16A
4.22relating to budgeting, payroll, and the purchase of goods and services.
4.23(e) In addition to the amounts credited to the lottery operations account under
4.24paragraph (b), the director is authorized, if necessary, to meet the current obligations of
4.25the lottery and to credit up to 25 percent of an amount equal to the average annual amount
4.26which was authorized to be credited to the lottery operations account for the previous three
4.27fiscal years but was not needed to meet the obligations of the lottery.
4.28 Sec. 11. Minnesota Statutes 2010, section 349A.13, is amended to read:
4.29349A.13 RESTRICTIONS.
4.30Nothing in this chapter:
4.31(1) authorizes the director to conduct a lottery game or contest the winner or winners
4.32of which are determined by the result of a sporting event other than a horse race conducted
4.33under chapter 240;
5.1(2) authorizes the director to install or operate a lottery device operated by coin or
5.2currency which when operated determines the winner of a game, except as authorized
5.3under section 349A.17; and
5.4(3) authorizes the director to sell pull-tabs as defined under section349.12,
5.5subdivision 32 .
5.6 Sec. 12. [349A.17] GAMING MACHINES.
5.7 Subdivision 1. Location contract. (a) The director may enter into a contract with
5.8a person to provide locations for gaming machines. Contracts entered into under this
5.9section are not subject to chapter 16C. The director may only enter a contract under this
5.10subdivision with a person who holds a class A license under chapter 240 for a racetrack
5.11offering thoroughbred and quarterhorse racing. The gaming machines may only be placed
5.12at the racetrack for which the class A license under chapter 240 was issued. Contracts
5.13entered into under this section are void if the racetrack: (1) has not hosted at least 75 days
5.14of live racing, authorized by the Minnesota Racing Commission, during the previous year,
5.15or (2) has not been approved, unless approval is pending, for at least 75 days of live racing
5.16during the present year.
5.17(b) Contracts entered into must provide for compensation to the racetrack in an
5.18amount equal to at least the following percentages of adjusted gross gaming machine
5.19revenue generated at the track: (1) 60 percent of the first $125,000,000 of annual revenue;
5.20(2) 55 percent of annual revenue between $125,000,000 and $200,000,000; and (3) 45
5.21percent of annual revenue in excess of $200,000,000.
5.22(c) From the compensation received by the racetrack under this section, the racetrack
5.23shall annually remit an amount equal to one percent of the adjusted gross gaming machine
5.24revenue to both the city and the county where the racetrack is located.
5.25 Subd. 2. Operation. (a) All gaming machines that are placed at a racetrack under
5.26subdivision 1 must be operated and controlled by the director.
5.27(b) Gaming machines must be owned or leased by the director, however, the financial
5.28responsibility for all other activities related to the gaming facility including, but not
5.29limited to, advertising, marketing, facility expenses, staffing, security, and surveillance,
5.30shall be borne by the holder of the location contract.
5.31(c) Gaming machines must be maintained by the lottery, or by a vendor that is under
5.32the control and direction of the director.
5.33(d) The director must have a central communications system that monitors activities
5.34on each gaming machine. The central communications system must be located at a
5.35lottery office.
6.1(e) The director must supervise the general security arrangements associated
6.2with and relating to the operation of the gaming machines and implement procedures
6.3as deemed appropriate.
6.4(f) Advertising and promotional material produced by the racetrack relating to
6.5gaming machines located at the facility must be approved by the director.
6.6(g) The director may implement such other controls as are deemed necessary for the
6.7operation of gaming machines under this section.
6.8 Subd. 3. Specifications. Gaming machines must:
6.9(1) maintain on nonresettable meters a permanent record, capable of being printed
6.10out, of all transactions by the machine and all entries into the machine; and
6.11(2) be capable of being linked electronically to a central communications system to
6.12provide auditing program information as required by the director.
6.13 Subd. 4. Games. The director shall specify the games that may be placed on
6.14a gaming machine as provided in section 349A.04. Gaming machines may conduct
6.15pari-mutuel wagering and display horse races under specifications provided by the director.
6.16 Subd. 5. Examination of machines. The director shall examine prototypes of
6.17gaming machines and require that the manufacturer of the machine pay the cost of the
6.18examination. The director may contract for the examination of gaming machines.
6.19 Subd. 6. Testing of machines. The director may require working models of a
6.20gaming machine to be transported to the locations the director designates for testing,
6.21examination, and analysis. The manufacturer shall pay all costs for testing, examination,
6.22analysis, and transportation of the machine model.
6.23 Subd. 7. Prizes. A person who plays a gaming machine agrees to be bound by the
6.24rules and game procedures applicable to that particular gaming machine game. The player
6.25acknowledges that the determination of whether the player has won a prize is subject to
6.26the rules and game procedures adopted by the director, claim procedures established by
6.27the director for the game, and any confidential or public validation tests established by
6.28the director for the game. A person under 18 years of age may not claim a prize from the
6.29operation of a gaming machine. A prize claimed from the play of a gaming machine game
6.30is not subject to section 349A.08, subdivision 8.
6.31 Subd. 8. Prohibitions. (a) A person under the age of 18 years may not play a
6.32game on a gaming machine.
6.33(b) The director or any employee of the lottery, or a member of the immediate family
6.34residing in the same household, may not play a game on a gaming machine or receive a
6.35prize from the operation of a gaming machine.
7.1 Subd. 9. Compulsive gambling notice. The director shall prominently post, in the
7.2area where the gaming machines are located, the toll-free telephone number established
7.3by the commissioner of human services in connection with the compulsive gambling
7.4program established under section 245.98. The director and the location provider shall
7.5establish a responsible gambling plan in consultation with the National Council on
7.6Problem Gambling or the Minnesota affiliate. By January 15 of each year, the director
7.7shall submit a report to the legislature, of not more than five pages in length, setting forth
7.8the status of the responsible gambling plan.
7.9 Subd. 10. Local licenses. Except as provided in subdivision 1, no political
7.10subdivision may require a license to operate a gaming machine, restrict or regulate the
7.11placement of gaming machines, or impose a tax or fee on the business of operating
7.12gaming machines.
7.13 Sec. 13. Minnesota Statutes 2010, section 541.20, is amended to read:
7.14541.20 RECOVERY OF MONEY LOST.
7.15Every person who, by playing at cards, dice, or other game, or by betting on the
7.16hands or sides of such as are gambling, shall lose to any person so playing or betting
7.17any sum of money or any goods, and pays or delivers the same, or any part thereof, to
7.18the winner, may sue for and recover such money by a civil action, before any court
7.19of competent jurisdiction. For purposes of this section, gambling shall not include
7.20pari-mutuel wagering conducted under a license issued pursuant to chapter 240, purchase
7.21or sale of tickets in the state lottery, purchase of gaming machine plays as authorized under
7.22chapter 349A, or gambling authorized under chapters 349 and 349A.
7.23 Sec. 14. Minnesota Statutes 2010, section 541.21, is amended to read:
7.24541.21 COMMITMENTS FOR GAMBLING DEBT VOID.
7.25Every note, bill, bond, mortgage, or other security or conveyance in which the whole
7.26or any part of the consideration shall be for any money or goods won by gambling or
7.27playing at cards, dice, or any other game whatever, or by betting on the sides or hands
7.28of any person gambling, or for reimbursing or repaying any money knowingly lent or
7.29advanced at the time and place of such gambling or betting, or lent and advanced for any
7.30gambling or betting to any persons so gambling or betting, shall be void and of no effect
7.31as between the parties to the same, and as to all persons except such as hold or claim
7.32under them in good faith, without notice of the illegality of the consideration of such
7.33contract or conveyance. The provisions of this section shall not apply to: (1) pari-mutuel
7.34wagering conducted under a license issued pursuant to chapter 240; (2) purchase of tickets
8.1in the state lottery or other wagering authorized under chapter 349A; (3) gaming activities
8.2conducted pursuant to the Indian Gaming Regulatory Act, United States Code, title 25,
8.3section 2701 et seq.; or (4) lawful gambling activities permitted under chapter 349.
8.4 Sec. 15. Minnesota Statutes 2010, section 609.75, subdivision 3, is amended to read:
8.5 Subd. 3. What are not bets. The following are not bets:
8.6(1) a contract to insure, indemnify, guarantee or otherwise compensate another for a
8.7harm or loss sustained, even though the loss depends upon chance;
8.8(2) a contract for the purchase or sale at a future date of securities or other
8.9commodities;
8.10(3) offers of purses, prizes or premiums to the actual contestants in any bona fide
8.11contest for the determination of skill, speed, strength, endurance, or quality or to the bona
8.12fide owners of animals or other property entered in such a contest;
8.13(4) the game of bingo when conducted in compliance with sections349.11 to
349.23 ;
8.14(5) a private social bet not part of or incidental to organized, commercialized, or
8.15systematic gambling;
8.16(6) the operation of equipment or the conduct of a raffle under sections349.11 to
8.17349.22
, by an organization licensed by the Gambling Control Board or an organization
8.18exempt from licensing under section349.166 ;
8.19(7) pari-mutuel betting on horse racing when the betting is conducted under chapter
8.20240; and
8.21(8) the purchase and sale of state lottery tickets and plays on a gaming machine
8.22under chapter 349A.
8.23 Sec. 16. Minnesota Statutes 2010, section 609.761, subdivision 2, is amended to read:
8.24 Subd. 2. State lottery. Sections609.755 and
609.76 do not prohibit the operation of
8.25the state lottery or the sale, possession, or purchase of tickets for the state lottery under
8.26chapter 349A, or the manufacture, possession, sale, or operation of a gaming machine
8.27under chapter 349A.
8.28 Sec. 17. MULTI-STADIUM REVENUE FUND.
8.29The multi-stadium revenue fund is established as a special account in the state
8.30treasury. The fund consists of money deposited in the fund under Minnesota Statutes,
8.31section 297A.651, and any interest earned thereon. Money in the fund may not be spent
8.32unless appropriated by law and is dedicated for the financing and construction of a
8.33professional football stadium for the Minnesota Vikings and a regional ballpark for the
9.1St. Paul Saints. Money in the fund is intended to pay all necessary debt service on bonds
9.2authorized by an act of the legislature, for capital costs relating to a professional football
9.3stadium for the Minnesota Vikings and a regional ballpark for the St. Paul Saints. The
9.4commissioner shall determine the debt service amount required by such act, as provided
9.5in Minnesota Statutes, section 16A.643. Appropriations may be made on an annual or
9.6biennial basis and may be made to the commissioner of management and budget for
9.7transfer to the bond debt service account in the state bond fund.
9.8 Sec. 18. SEVERABILITY; SAVINGS.
9.9If any provision of this act is found to be invalid because it is in conflict with a
9.10provision of the Minnesota Constitution or the Constitution of the United States, or for any
9.11other reason, all other provisions of this act shall remain valid and any rights, remedies,
9.12and privileges that have been otherwise accrued by this act, shall remain in effect and may
9.13be proceeded with and concluded under this act.
9.14 Sec. 19. EFFECTIVE DATE.
9.15This article is effective the day following final enactment.
1.3gaming machines; imposing a tax on gaming machine revenue; providing
1.4powers and duties to the director; establishing a multi-stadium revenue fund and
1.5dedicating money in the fund for financing and construction of a stadium for the
1.6Minnesota Vikings and a ballpark for the St. Paul Saints;amending Minnesota
1.7Statutes 2010, sections 299L.07, subdivisions 2, 2a; 340A.410, subdivision
1.85; 349A.01, subdivision 10, by adding subdivisions; 349A.10, subdivision
1.93; 349A.13; 541.20; 541.21; 609.75, subdivision 3; 609.761, subdivision 2;
1.10proposing coding for new law in Minnesota Statutes, chapters 297A; 349A.
1.11BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.12 Section 1. [297A.651] LOTTERY GAMING MACHINES; IN-LIEU TAX.
1.13Adjusted gross revenue from the operation of gaming machines authorized under
1.14chapter 349A is exempt from the tax imposed under section 297A.62. The State Lottery
1.15must, on or before the 20th day of each month, transmit to the commissioner an amount
1.16equal to the adjusted gross revenue from the operation of gaming machines, as defined
1.17in section 349A.01, for the previous month multiplied by: (1) 25 percent of annual
1.18adjusted gross revenue generated by the licensee up to $125,000,000; (2) 30 percent
1.19of annual adjusted gross revenue generated by the licensee between $125,000,000 and
1.20$200,000,000; and (3) 40 percent of annual adjusted gross revenue generated by the
1.21licensee in excess of $200,000,000. The commissioner shall deposit the money transmitted
1.22under this section in the state treasury in the multi-stadium revenue fund in section 17.
1.23 Sec. 2. Minnesota Statutes 2010, section 299L.07, subdivision 2, is amended to read:
1.24 Subd. 2. Exclusions. Notwithstanding subdivision 1, a gambling device:
2.1(1) may be sold by a person who is not licensed under this section, if the person (i) is
2.2not engaged in the trade or business of selling gambling devices, and (ii) does not sell
2.3more than one gambling device in any calendar year;
2.4(2) may be sold by the governing body of a federally recognized Indian tribe
2.5described in subdivision 2a, paragraph (b), clause (1), which is not licensed under this
2.6section, if (i) the gambling device was operated by the Indian tribe, (ii) the sale is to
2.7a distributor licensed under this section, and (iii) the licensed distributor notifies the
2.8commissioner of the purchase, in the same manner as is required when the licensed
2.9distributor ships a gambling device into Minnesota;
2.10(3) may be possessed by a person not licensed under this section if the person holds
2.11a permit issued under section
2.12(4) may be possessed by a state agency, with the written authorization of the director,
2.13for display or evaluation purposes only and not for the conduct of gambling
2.14(5) may be possessed by the State Lottery as authorized under chapter 349A.
2.15 Sec. 3. Minnesota Statutes 2010, section 299L.07, subdivision 2a, is amended to read:
2.16 Subd. 2a. Restrictions. (a) A manufacturer licensed under this section may sell,
2.17offer to sell, lease, or rent, in whole or in part, a gambling device only to a distributor
2.18licensed under this section or to the State Lottery as authorized under chapter 349A.
2.19(b) A distributor licensed under this section may sell, offer to sell, market, rent,
2.20lease, or otherwise provide, in whole or in part, a gambling device only to:
2.21(1) the governing body of a federally recognized Indian tribe that is authorized
2.22to operate the gambling device under a tribal state compact under the Indian Gaming
2.23Regulatory Act, Public Law 100-497, and future amendments to it;
2.24(2) a person for use in the person's dwelling for display or amusement purposes in a
2.25manner that does not afford players an opportunity to obtain anything of value;
2.26(3) another distributor licensed under this section;
2.27(4) a person in another state who is authorized under the laws of that state to possess
2.28the gambling device
2.29(5) the State Lottery as authorized under chapter 349A.
2.30 Sec. 4. Minnesota Statutes 2010, section 340A.410, subdivision 5, is amended to read:
2.31 Subd. 5. Gambling prohibited. (a) Except as otherwise provided in this
2.32subdivision, no retail establishment licensed to sell alcoholic beverages may keep, possess,
2.33or operate, or permit the keeping, possession, or operation on the licensed premises of dice
2.34or any gambling device as defined in section
3.1(b) Gambling equipment may be kept or operated and raffles conducted on licensed
3.2premises and adjoining rooms when the use of the gambling equipment is authorized by
3.3(1) chapter 349, (2) a tribal ordinance in conformity with the Indian Gaming Regulatory
3.4Act, Public Law 100-497, or (3) a tribal-state compact authorized under section
3.5(c) Lottery tickets may be purchased and sold within the licensed premises as
3.6authorized by the director of the lottery under chapter 349A.
3.7(d) Dice may be kept and used on licensed premises and adjoining rooms as
3.8authorized by section
3.9(e) Gambling devices may be operated on the premises of a licensed racetrack
3.10as authorized by chapter 349A.
3.11 Sec. 5. Minnesota Statutes 2010, section 349A.01, is amended by adding a subdivision
3.12to read:
3.13 Subd. 1a. Adjusted gross gaming machine revenue. "Adjusted gross gaming
3.14machine revenue" means the sum of all money received by the lottery for gaming machine
3.15plays, less the amount paid out in prizes for gaming machine games.
3.16 Sec. 6. Minnesota Statutes 2010, section 349A.01, is amended by adding a subdivision
3.17to read:
3.18 Subd. 6a. Gaming machine. "Gaming machine" means any machine in which a
3.19coin token or other currency is deposited to play a game that uses a video display and
3.20microprocessors.
3.21 Sec. 7. Minnesota Statutes 2010, section 349A.01, is amended by adding a subdivision
3.22to read:
3.23 Subd. 6b. Gaming machine game. "Gaming machine game" means a game
3.24operated by a gaming machine as authorized by the director.
3.25 Sec. 8. Minnesota Statutes 2010, section 349A.01, is amended by adding a subdivision
3.26to read:
3.27 Subd. 6c. Gaming machine play. "Gaming machine play" means an electronic
3.28record that proves participation in a gaming machine game.
3.29 Sec. 9. Minnesota Statutes 2010, section 349A.01, subdivision 10, is amended to read:
3.30 Subd. 10. Lottery procurement contract. "Lottery procurement contract" means a
3.31contract to provide lottery products, gaming machines, maintenance of gaming machines,
4.1computer hardware and software used to monitor sales of lottery tickets and gaming
4.2machine plays, and lottery tickets. "Lottery procurement contract" does not include
4.3a contract to provide an annuity or prize payment agreement or materials, supplies,
4.4equipment, or services common to the ordinary operation of a state agency.
4.5 Sec. 10. Minnesota Statutes 2010, section 349A.10, subdivision 3, is amended to read:
4.6 Subd. 3. Lottery operations. (a) The director shall establish a lottery operations
4.7account in the lottery fund. The director shall pay all costs of operating the lottery,
4.8including payroll costs or amounts transferred to the state treasury for payroll costs, but
4.9not including lottery prizes, from the lottery operating account. The director shall credit to
4.10the lottery operations account amounts sufficient to pay the operating costs of the lottery.
4.11(b) Except as provided in paragraph (e), the director may not credit in any fiscal
4.12year thereafter amounts to the lottery operations account which when totaled exceed
4.13nine percent of gross revenue to the lottery fund in that fiscal year. In computing total
4.14amounts credited to the lottery operations account under this paragraph the director shall
4.15disregard amounts transferred to or retained by lottery retailers as sales commissions or
4.16other compensation and amounts transferred or retained by a racetrack under a location
4.17contract under section 349A.17.
4.18(c) The director of the lottery may not expend after July 1, 1991, more than 2-3/4
4.19percent of gross revenues in a fiscal year for contracts for the preparation, publication, and
4.20placement of advertising.
4.21(d) Except as the director determines, the lottery is not subject to chapter 16A
4.22relating to budgeting, payroll, and the purchase of goods and services.
4.23(e) In addition to the amounts credited to the lottery operations account under
4.24paragraph (b), the director is authorized, if necessary, to meet the current obligations of
4.25the lottery and to credit up to 25 percent of an amount equal to the average annual amount
4.26which was authorized to be credited to the lottery operations account for the previous three
4.27fiscal years but was not needed to meet the obligations of the lottery.
4.28 Sec. 11. Minnesota Statutes 2010, section 349A.13, is amended to read:
4.29349A.13 RESTRICTIONS.
4.30Nothing in this chapter:
4.31(1) authorizes the director to conduct a lottery game or contest the winner or winners
4.32of which are determined by the result of a sporting event other than a horse race conducted
4.33under chapter 240;
5.1(2) authorizes the director to install or operate a lottery device operated by coin or
5.2currency which when operated determines the winner of a game, except as authorized
5.3under section 349A.17; and
5.4(3) authorizes the director to sell pull-tabs as defined under section
5.5subdivision 32
5.6 Sec. 12. [349A.17] GAMING MACHINES.
5.7 Subdivision 1. Location contract. (a) The director may enter into a contract with
5.8a person to provide locations for gaming machines. Contracts entered into under this
5.9section are not subject to chapter 16C. The director may only enter a contract under this
5.10subdivision with a person who holds a class A license under chapter 240 for a racetrack
5.11offering thoroughbred and quarterhorse racing. The gaming machines may only be placed
5.12at the racetrack for which the class A license under chapter 240 was issued. Contracts
5.13entered into under this section are void if the racetrack: (1) has not hosted at least 75 days
5.14of live racing, authorized by the Minnesota Racing Commission, during the previous year,
5.15or (2) has not been approved, unless approval is pending, for at least 75 days of live racing
5.16during the present year.
5.17(b) Contracts entered into must provide for compensation to the racetrack in an
5.18amount equal to at least the following percentages of adjusted gross gaming machine
5.19revenue generated at the track: (1) 60 percent of the first $125,000,000 of annual revenue;
5.20(2) 55 percent of annual revenue between $125,000,000 and $200,000,000; and (3) 45
5.21percent of annual revenue in excess of $200,000,000.
5.22(c) From the compensation received by the racetrack under this section, the racetrack
5.23shall annually remit an amount equal to one percent of the adjusted gross gaming machine
5.24revenue to both the city and the county where the racetrack is located.
5.25 Subd. 2. Operation. (a) All gaming machines that are placed at a racetrack under
5.26subdivision 1 must be operated and controlled by the director.
5.27(b) Gaming machines must be owned or leased by the director, however, the financial
5.28responsibility for all other activities related to the gaming facility including, but not
5.29limited to, advertising, marketing, facility expenses, staffing, security, and surveillance,
5.30shall be borne by the holder of the location contract.
5.31(c) Gaming machines must be maintained by the lottery, or by a vendor that is under
5.32the control and direction of the director.
5.33(d) The director must have a central communications system that monitors activities
5.34on each gaming machine. The central communications system must be located at a
5.35lottery office.
6.1(e) The director must supervise the general security arrangements associated
6.2with and relating to the operation of the gaming machines and implement procedures
6.3as deemed appropriate.
6.4(f) Advertising and promotional material produced by the racetrack relating to
6.5gaming machines located at the facility must be approved by the director.
6.6(g) The director may implement such other controls as are deemed necessary for the
6.7operation of gaming machines under this section.
6.8 Subd. 3. Specifications. Gaming machines must:
6.9(1) maintain on nonresettable meters a permanent record, capable of being printed
6.10out, of all transactions by the machine and all entries into the machine; and
6.11(2) be capable of being linked electronically to a central communications system to
6.12provide auditing program information as required by the director.
6.13 Subd. 4. Games. The director shall specify the games that may be placed on
6.14a gaming machine as provided in section 349A.04. Gaming machines may conduct
6.15pari-mutuel wagering and display horse races under specifications provided by the director.
6.16 Subd. 5. Examination of machines. The director shall examine prototypes of
6.17gaming machines and require that the manufacturer of the machine pay the cost of the
6.18examination. The director may contract for the examination of gaming machines.
6.19 Subd. 6. Testing of machines. The director may require working models of a
6.20gaming machine to be transported to the locations the director designates for testing,
6.21examination, and analysis. The manufacturer shall pay all costs for testing, examination,
6.22analysis, and transportation of the machine model.
6.23 Subd. 7. Prizes. A person who plays a gaming machine agrees to be bound by the
6.24rules and game procedures applicable to that particular gaming machine game. The player
6.25acknowledges that the determination of whether the player has won a prize is subject to
6.26the rules and game procedures adopted by the director, claim procedures established by
6.27the director for the game, and any confidential or public validation tests established by
6.28the director for the game. A person under 18 years of age may not claim a prize from the
6.29operation of a gaming machine. A prize claimed from the play of a gaming machine game
6.30is not subject to section 349A.08, subdivision 8.
6.31 Subd. 8. Prohibitions. (a) A person under the age of 18 years may not play a
6.32game on a gaming machine.
6.33(b) The director or any employee of the lottery, or a member of the immediate family
6.34residing in the same household, may not play a game on a gaming machine or receive a
6.35prize from the operation of a gaming machine.
7.1 Subd. 9. Compulsive gambling notice. The director shall prominently post, in the
7.2area where the gaming machines are located, the toll-free telephone number established
7.3by the commissioner of human services in connection with the compulsive gambling
7.4program established under section 245.98. The director and the location provider shall
7.5establish a responsible gambling plan in consultation with the National Council on
7.6Problem Gambling or the Minnesota affiliate. By January 15 of each year, the director
7.7shall submit a report to the legislature, of not more than five pages in length, setting forth
7.8the status of the responsible gambling plan.
7.9 Subd. 10. Local licenses. Except as provided in subdivision 1, no political
7.10subdivision may require a license to operate a gaming machine, restrict or regulate the
7.11placement of gaming machines, or impose a tax or fee on the business of operating
7.12gaming machines.
7.13 Sec. 13. Minnesota Statutes 2010, section 541.20, is amended to read:
7.14541.20 RECOVERY OF MONEY LOST.
7.15Every person who, by playing at cards, dice, or other game, or by betting on the
7.16hands or sides of such as are gambling, shall lose to any person so playing or betting
7.17any sum of money or any goods, and pays or delivers the same, or any part thereof, to
7.18the winner, may sue for and recover such money by a civil action, before any court
7.19of competent jurisdiction. For purposes of this section, gambling shall not include
7.20pari-mutuel wagering conducted under a license issued pursuant to chapter 240, purchase
7.21or sale of tickets in the state lottery, purchase of gaming machine plays as authorized under
7.22chapter 349A, or gambling authorized under chapters 349 and 349A.
7.23 Sec. 14. Minnesota Statutes 2010, section 541.21, is amended to read:
7.24541.21 COMMITMENTS FOR GAMBLING DEBT VOID.
7.25Every note, bill, bond, mortgage, or other security or conveyance in which the whole
7.26or any part of the consideration shall be for any money or goods won by gambling or
7.27playing at cards, dice, or any other game whatever, or by betting on the sides or hands
7.28of any person gambling, or for reimbursing or repaying any money knowingly lent or
7.29advanced at the time and place of such gambling or betting, or lent and advanced for any
7.30gambling or betting to any persons so gambling or betting, shall be void and of no effect
7.31as between the parties to the same, and as to all persons except such as hold or claim
7.32under them in good faith, without notice of the illegality of the consideration of such
7.33contract or conveyance. The provisions of this section shall not apply to: (1) pari-mutuel
7.34wagering conducted under a license issued pursuant to chapter 240; (2) purchase of tickets
8.1in the state lottery or other wagering authorized under chapter 349A; (3) gaming activities
8.2conducted pursuant to the Indian Gaming Regulatory Act, United States Code, title 25,
8.3section 2701 et seq.; or (4) lawful gambling activities permitted under chapter 349.
8.4 Sec. 15. Minnesota Statutes 2010, section 609.75, subdivision 3, is amended to read:
8.5 Subd. 3. What are not bets. The following are not bets:
8.6(1) a contract to insure, indemnify, guarantee or otherwise compensate another for a
8.7harm or loss sustained, even though the loss depends upon chance;
8.8(2) a contract for the purchase or sale at a future date of securities or other
8.9commodities;
8.10(3) offers of purses, prizes or premiums to the actual contestants in any bona fide
8.11contest for the determination of skill, speed, strength, endurance, or quality or to the bona
8.12fide owners of animals or other property entered in such a contest;
8.13(4) the game of bingo when conducted in compliance with sections
8.14(5) a private social bet not part of or incidental to organized, commercialized, or
8.15systematic gambling;
8.16(6) the operation of equipment or the conduct of a raffle under sections
8.18exempt from licensing under section
8.19(7) pari-mutuel betting on horse racing when the betting is conducted under chapter
8.20240; and
8.21(8) the purchase and sale of state lottery tickets and plays on a gaming machine
8.22under chapter 349A.
8.23 Sec. 16. Minnesota Statutes 2010, section 609.761, subdivision 2, is amended to read:
8.24 Subd. 2. State lottery. Sections
8.25the state lottery or the sale, possession, or purchase of tickets for the state lottery under
8.26chapter 349A, or the manufacture, possession, sale, or operation of a gaming machine
8.27under chapter 349A.
8.28 Sec. 17. MULTI-STADIUM REVENUE FUND.
8.29The multi-stadium revenue fund is established as a special account in the state
8.30treasury. The fund consists of money deposited in the fund under Minnesota Statutes,
8.31section 297A.651, and any interest earned thereon. Money in the fund may not be spent
8.32unless appropriated by law and is dedicated for the financing and construction of a
8.33professional football stadium for the Minnesota Vikings and a regional ballpark for the
9.1St. Paul Saints. Money in the fund is intended to pay all necessary debt service on bonds
9.2authorized by an act of the legislature, for capital costs relating to a professional football
9.3stadium for the Minnesota Vikings and a regional ballpark for the St. Paul Saints. The
9.4commissioner shall determine the debt service amount required by such act, as provided
9.5in Minnesota Statutes, section 16A.643. Appropriations may be made on an annual or
9.6biennial basis and may be made to the commissioner of management and budget for
9.7transfer to the bond debt service account in the state bond fund.
9.8 Sec. 18. SEVERABILITY; SAVINGS.
9.9If any provision of this act is found to be invalid because it is in conflict with a
9.10provision of the Minnesota Constitution or the Constitution of the United States, or for any
9.11other reason, all other provisions of this act shall remain valid and any rights, remedies,
9.12and privileges that have been otherwise accrued by this act, shall remain in effect and may
9.13be proceeded with and concluded under this act.
9.14 Sec. 19. EFFECTIVE DATE.
9.15This article is effective the day following final enactment.
