HomeMy WebLinkAbout10.F.2. Resolution of Support for "Racinos" in Minnesota-Res. No. 7171 �o. F a.
CITY OF SHAKOPEE
Memorandum
TO: Mayox and City Council
FROM: Mark McNeill, City Administrator
SUBJECT Resolution of Support-Racinos
DATE: February 21, 2012
Comment:
Introduction:
The Council is asked to consider a resolution supporting the establishment of racinos in
Minnesota, including one at Shakopee's Canterbury Yark.
Background:
As part of the "Other Concerns" of the January 17`" City Council meeting, there was
discussion as to whether the City should take action to support raeino legislation at the
Minnesota Legislature. After some discussion, the consensus was that the Council should
wait to until legislation had been introduced before considering a posiYion.
Last week, bills were introduced which meeY the needs of both Canterbury Pazk, and the
Running Aces facility. The bills are being referred to the appropriate committees for
review, but no hearings have been scheduled as of this ��miting.
Previous years' versions of racino bills have included 1% of racino pxoceeds to go to the
host city, and to the host county. The versions as introduced in 2012 have included
similar language. Based on preliminary estimates provided by Canterbury, it would
mean $1.2 million to ultimately be generated annually each far the Shakopee and Scott
County. It should be noted that without this source of funding, there would added public
safety costs that would otherwisc have to be borne solely by City and County taxpayers.
The Council should be aware that the Mayor of the City of Prior Lake has recently scnt to
the Legislature a letter on behalf of his city, taking a position in opposition to the
establishment of racinos in Minnesota.
Recommendation:
If the Council wishes to take a formal position on racinos in 2012, it should adopt the
attached ResoluYion No.7171.
The last official position taken by a Shakopee City Council on the subject was Resolution
I�TO. 5865, which was adopted by that Council on March 4, 2003
Relationship to Visioning:
This supports Goal B-Positively manage the challenges and opportunities presented by
growrth, development, and change.
Action Required:
If the Council concurs, it should, by motion, adopt the following Resolution No. 7171:
A Resolution Endorsing the L'stablishn�ent of "Xacinos" at Parimutual Horse Racing
Facilities in Minnesota.
i��`; _�= 1L`C
Mark McNeill
MM:cn City Administrator
RESOLUTION N0.7171
A RESOL UTION ENDORSING THE ESTABLISKLIENT OF "RACI.�rOS " AT PARI-
MIJTUAL HORSE RACING FACILITIES IN MI_NNESOTA
WHERF,AS, Canterbury Downs opened as Minnesota's sole pari-mutual horse
racinb facility in 1985; and,
WHEREAS, a second pari-mutual facility has since opened in Columbus
Township; and,
WHEREAS, the establishment of a racino at one or both of these facilities would
provide increased revenues for the horse racing industry of Minnesota, and provide
additional monies to fund State operations or projects; and,
WHEREAS, Canterbury Park is a logical location for a the establishment of at
least one racino to benefit the State of Minnesota, in that much of the infrastructure
needed for a successful gambling operation is already in place, and
WHEREAS, a racino at Cantcrbury Park in Shakopee is a natural addition to other
tourism attractions in the area; and,
WHEREAS, the City of Shakopee supports language which includes the
designation of 1% of racino revenues to go to each host city, and host county, which
would be used to off-set the additional public safety and traffic accommodation expenses
which would be experienced as a result of the additional visitors to the area.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND THE CITY
COiJNCIL OF THE CITY OF SHAKOPEE, MINNESOTA, that it hereby endorses the
introducYion of casino-style slot machines to be known as "xacinos" at the Canterbury
Park, and Running Aces facilities.
Adopted in session of the City Council of the City of Shakopee,
Minnesota, held this day of March, 2012.
Mayor of the City of Shakopee
ATTEST:
City Clerk
2/16/12 • H.F. No. 2338, as introduced - 87th Legislative Session (2011-2012)
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� �,± MinnesoW House of Representati�es
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Authors and Status List �ersions �
H.F. No. 2338, as introduced - 87th Legislative Session (2017-2072) Posted on Feb 16, 2012
1.1 A bill for an act
1.2 relating to gamblmg; authorizmg the duectox of the State Lottery to establish
1.3 gaming machines at a licensed racetrack; imposing x fee on gammg machine
1 9 revenue; providing po�vcrs and duties to the director; dedicatu�g money for
1.5 educatiou;amending Miunesota Statutes 2010, sections 24Q03; 240.13, by
1. 6 adding a subdivision; 240.14, by addin� a subdivision; 24028, subdivision 2;
1�� 299L.07, subdivisions 2, 2a; 340A.41D, subdivision 5; 349AA1, subdivision
i. a 10, by adding subdivisions; 349A.1Q subdivision 3; 349A13; 541.20; 541.21;
1 9 609J5, subclivision 3; 609.761, subdi�ision 2; proposing coding for ne�v la��� ui
1.10 Minncsota Statutes, chapters 297A; 349A; repealing Minnesota Sta[utes 2010,
1.11 section 24030, subdivision 8.
l.lz BE IT ENACTED RY TIiF. LEGISLATURE OF THE STATE OF h91NNESOTA:
1.13 ARTICLE 1
1.19 RnCTNO
l.ls Scction 1. Minncsota Statutes 2010, section 240.03, is amended to read:
1.16 240.03 COMMISSION POWF,RS AND DUTIES.
1. i7 The commission has the following powers and duties:
1.1e (1) to re�ilate horse racing in Minncsota to ensurc that it is eouductcd in the public
1.19 intCrest;
1.20 (2) to issue liccnscs as providcd ai this chaptcr;
1. u (3) to cnforcc all ]aws and rules governing horse racing;
1.22 (4) to collec[ and distribute all taxes provided fox ui this chap[er;
1.23 (5) to conduct necessxry investigations and uiquuies and compcl thc submission of
1.24 inf'ormation, documents, and records it deems necessary to carry out its duties;
1.25 (6) tU supervise the conducl of pari-mutucl bcttmg on horsc racing;
i.2e (7) to cmploy and supervise personnel under this chapter;
�� i (8) to determine the number of racuig days to be held ui the state and at each
� • � licensed racctrack,
z.3 (9) tp take all necessary steps to ensure the integrity of racing in Minnesota; atld
z• 9 (10) to nnposc fccs on thc racing and card playing industrics sufficicnt to rccovcr il�c
2.5 operating costs of the commission with the approval of the legislature according to section
�� e 16A.1283 . Notcvithstanding section 16A.1283, when the Le�isleture is not ni session, the
z� commissioncr of management and budget may grant interim approval for any new fccs
2. e or adjactmcnts to existing fees that are not statutorily specihed, until such time as thc
z• 9 Ica lah�rc rcconvcncs and acts upon the ne��- tees or adjustments. As part of its bicnnial
z.10 budget request, the commission muet prop�se changes to its fees that will be sufficient to
2.11 recover the operatmg costs of the coriunission-�nd
�� i� (lll to take all iiecessary ste�s to cnsurc thc scci�riry of all activities in a cl�ss A
z.13 licensed racetrack. The duties and resoonsi6ili[ics of the commission include but are not
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2/16/12 H.F. Na 2338, as introduced - 871h Legislative Session (2011-2012)
z.1a Iimitcd to licensin_��vees of a class A ficcnsec and vendors to ilic class A licensec
z.15 involvcd in the conduct of pamin� machines au[hori�ed by a location contract with the
z. ie direc[or of the State Lottery tmder section 349A.17 and overall si�rveillancc and securitv
z.l� of all conducl on all facilitics of a licensed racetrack. The commission shall require that
2.18 a class A licensed racetrack rcimburse it for the commissiods actual costs. includine
2.19 nersonnel costs. for conductina activities provided in this c4ause and amounts rcccivcd
2-2o mast be deposited as provided in section 240.155. subdivision 1. The comrrussion shall
Z.21 review procedures of the class A licensee to ensure cotnpliance widi section Z40.13.
z.22 subdivisiot� Sa.
z.23 Sea 2. Minnesota Statutes 2010, scction 240.13, is amcnded by adding a suhdivision
2•29 toread:
2.25 Suhd. Sa. Eauine industry impruvement fund. (al To compcnsatc thc horse
2. ze racing industr� for thc presence of lottery Qamine machines at class A racing fac�7ities, the
2. z7 conunission shall establish and maintain an equine industr�provement fund into which
z. ze tlie commission shall deposit the funds received pursuant to seclion 349A.17, subdivision
2.29 1 The conunission shall routincly U'ansfcr 80 perccnt of thc fund allocated for purse
2. so su�plcments to a licensee conducting live racing for more than one breed of horse and
z. 31 20 nercent to a licensee conducting live racn�g for only one brccd of hurse and dffect the
z.3z liccnsce [o use the funds to supplement purses offered for live races. Purse supplements
2.33 rcauircd undcr this subdivision are in addition to purse payments otherwise establuhed
2. 39 by law or contract The loc:ation contract holdcr and lhc organization rcpresentin� the
2.35 maiorit�f horscpersons racine at the location contract holder's racetrack may, bv written
3.1 contract. agree to use a portion of the transferred funds for rxcing-rclatcd purposes other
3-2 dianpiusesupplemen[ation.
3.3 (bl Thc commission shall allocate 20 percent of the fund for breeder's fund purposes
3. 4 and shall transmit that amount to the breeder's fund for the bc�cfit of cach brecd racin¢
3. s at a cl�ss A licenscd faciliry hosting lottery ag tnin€=. machines. Amounts transferred for
3. 6 each breed shall be in the same proportions establislied, under tivs subdivision. for pursc
3� supqlemen[s. Amowris h'ansferrcd to a breeder's fund shall be used for the pmposes
s. e of acction 2A0 18, subdivisions 2. paragraph (d). and 3. paragraph (61. subject to the
3. 9 nronortionali , requ�ement ui section 240.18. subdivision 1.
3.10 (cl Five percent of thc fund shall be placed in an equine industry enhancement fund
3.11 established hv the commissiou. The coirunission shall award erants from this account
3.1z desi�ied to su�port and improvc thc nonracing equine industry iticluding. but not limited
3.13 to construction of facilities and trails, production of shows_ and iscues related to retired
3.14 horscs.
3.15 Sec. 3. Mnuicsota Statutes 201Q section 240.14, is amended by add'uig a subdivision
3.16 to read:
3.1� Subd. 5. Lottery cuntract holder: minimum racing da� Licensees holdine
3.1e bcalion cunlracts with the director of the lot[ery_ who are authorized to conduct live racing
3.19 for more than one breed of horse, shall conduct thorougl�bred xnd quartcr horsc racm�
3.2o In anyyear the licensec shall offer the cquivalent of at least [wo quarter horse races for
3. cach racinR dav gan[ed to the ]iceusee by the commission. however. tlie licensee and the
3_ 2z oreamiaation re�resenting the majority of quarter horses owners Gcei�sed to racc in thc
3.23 state ma�eree to a different number of livc raccs to bc offcrcd. Schcduling of quarter
3.29 horse races shall bc as approvcd bv thc commission pursuant to section 24Q03, clause (81.
s.2s W�l failure to offer the races required by tl�is subdivision shall suUject the liccnscc to
3.26 discipl'uiary action as deemcd ap�ronriate bv the coaunission.
3.27
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2/16/12 • H.F. Na 2338, as introduced - 87Ih Legislative Session (2011-2012)
. Sec. 4. M�nesota Slalutes 2010, section 2402R, subdivision 2, is amended to read:
3• 28 Suhd. 2. Betting. No member or einployee oP thc coinmission may bet or caase a
3.29 bet to Ue madc on a race at a liceused racetrack while serving on or bcing cmploycd by
3.3o the commission. No person appointed or approved by the director as e steward may bet
3.3i or causc a bet to be made at a licensed racetrack during a racing mcctrtig at which the
3.32 person is seiving as a steward. The commission shall by rule prescribe such restrictions on
3.33 bclling by ils licensces as it deems necessary to piatect the intcgrity of racing. For thc
9� 1 ourooses of this subdrv ision a��lav on a ganvng machinc authorized by the director of the
A• 2 State Lottery at a licensed racelrack is dcemcd [o be a bet.
9 • 3 Sca 5. �297A.651 � LOTTERY CAMING MACHINES: Il�-LIEU FEE.
9-4 Adiusted �oss revenuc from thc operation of gaming machines authorized under
9• s chaptcr 349A is exem�t fi om the tax unposed under seclion 297A.62 and chaptcr 297E
9. e and any other tax, license. pernut or assessmcnt for conductin�a a� mbline activity Yhat is
9-� uot imposed by lhis section The State Lotterv must. on or before the 20di day of each
9 • e montl�, transmit to the commissioner an amotmt equal to lhe adjusted gross «aming
9� 9 machine revenuc from thc operation of gaming machines, as dctined in section 349A.01.
a. io for thc prcvious month multiplied hy: {1Lpercent of anm�al adji�slcd giross Eaming
a.11 machine revenue generated by each person that has a location contract under section
4.12 349A 17, subclivision 1, u�to 5150.000.000; (2Lpercent of annual adjusted gross
4.13 ganvng machine revenue generated by each persou that has a location contract imder
4.14 section 349A 17, subdivision l, bctwccn S150.000.000 and $200.000.000: and (3) 40
a, is perccnt of anmaal adjusted gross gaming machuie revenue generated by each person that
a.1e tias a location contract w�der section 349A.17, suUdivision 1, in excess of $200.000.000.
4. i� The coixunissioner shall deposit thc money transmitted under this section in the state
9 • i treastu u� article 2.
9 � 19 Sec. 6. Minnesota Statutcs 2010, section 299L_07, subdivision 2, is amended to read:
9 � Zo Subd. 2. Exdusions. Notwithstanding subdivicion 1, a gainblmg device:
9. �i (1) may be sold by a person who is not licensed under this section, if the person (i) is
9-22 not engaged in Aie lradc or busincss of selling gambluig devices, and (ii) does not sell
9��3 more than one gambling device in any calendar year;
9.24 (2) may be sold by thc gover�ing body of a federally recogni7zd Tndian tribe
9��s described in subdivision 2a, paragraph (b), clause (1), which is not licensed under this
9.26 section, if (i) the gambling device was operated by the Indun tnbc, (ii) thc salc is to
9-z� a distributor Gcensed tmder this scetion, and (iu) the licensed disMbutor notifies the
4.28 commissioner of the purchase, in the sanie manner as u requu when the licensed
9 distributor ships a gambling dcvicc into Minnesota;
4.30 (3) nuy be posscsscd by a person not liccnsed under this section if the person holds
9.31 a permit issued under section 299L.08; mid
9� 3� (4) nuy be possesscd by a state agency, with the written authori�ation of the dicector,
9.33 for display or evaluation purposes only and not for the conduct of gambling=, and
s.1 (51 may bc �sscsscd by the State Lottery or a person who has entered into a location
s• z contract with the State Lot[erv as authorized under chapter 349A.
5.3 Sce. 7. Mmnesota Stamtes 2010, section 299L.07, suUdivision 2a, ic ame��ded to read:
5 - 9 Subd. 2a. Restrictions. (a) A manufacturer licensed under this section may sell,
s.s offer to sell, lease, or rcnt, in whole or in pa�t, a gambling device only to a distributor
5.5 liccnscd undcr this scction or to the State Lotterv as authorized under chapter 349A.
s.� (b) A distrbutor ]icensed under tl�is section may sell, offer to sell, market, rent,
5-e lease, or otheiwise provide, in wliole or in part, a gainbling deviee only to:
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2/16112 H.F. No. 2338, as introduced - 87th Legislative Session (2011-2012)
5. 5 (1) lhc govcrnmg body of a fcdcrally rccognizcd Indian tribc that is authorizcd
s. io to operate the gambling device under a tribal state compact under the [ndian (�aming
s. ll Regulatory Act, Public Law 100-497, and future amendments lo it;
s. i2 (2) a persou for use in the persods dwelling for display or amusement purposes in a
5.13 manner that does not afford players an opporlunily to obtain anylhing of value;
s. i4 (3) another dishibutor licensed under this section; cjr
s. is (4) a person m another siate who is authorized under the laws of that state to possess
s.16 the gambl�ig device-•�r
5.1� �51 flie State Lottery as autliorized undec chapter 349A.
5. ie Sec. 8. Minnesota Statute5 2010, section 340A.410, subdivision 5, is amended to read:
5.19 Subd. 5. Gambliug prohibited. (a) Except as otherwise provided in this
s. zo subdivision, no retad establistunent licensed [o sell alcoholic beverages may keep, possess,
s.zi or operate, or permit the keeping, possession, or operation on the liceused premises of dice
5.2z or any gambluig device as defined in section 349.30, o� pennit gambling thereui.
5. z3 (6) Gambling cquipmcnt may bc kcpt or operatcd and rafflcs conducted on licensed
5.29 prcmiscs and adjoining rooms when the use of the gamblin� equipment is authorized by
s.25 (1) chapter 349, (2) a h�bal orduiance � confornuty with the Indian Crammg Regulatory
5.25 Act, PubGc Law 100-497, or (3) a tribal-statc eompact authorizcd under section 3.9221.
5-2� (c) Lottery tickets may be purchased and sold widtin tl�e licensed prenvses as
s.ze au[horized by the director of the bttery under chapter 349A.
s• z9 (d) Dicc may bc kcpt and uscd on liccnscd prcmiscs and adjoining rooms as
5.30 authori�zd by section 609.761, subdivi.eion 4.
s.31 (el This subdivision does not ap�lv to a licensed racetrack holdine a location
5.3z contract as authorized b,+ti chapter 349A.
6.1 Sec. 9. Minnesota Statutks 2010, sccdon 349A.01, ° amcnded by addmg a sutidivision
e.2 to read:
6 . 3 Subd. la_ Adiusted gruss gaming machine revenue. °Adjusted ��ross Qa�ttiin�
e� 9 machn�e revenue" means the sum of all money received bv the ]otterv for gaming macli'vie
e-5 l�ays. other than promotional ��. fess the amowit paid out ui prizes for gaiiting inacl�ine
6.6 ;��
e�� Sec. 10. Minnesota SG�hites 2010, section 349A.01, is amcnded by adding a
6� e subdn•ision to read:
6. 9 Subd. 6a. Gaming machine. "(iamin�machine" means any electronic device
e. io w]�ich. upon insertion of money, caui. taken, voucher, electconic card, or olher
6.11 consider�tion, allows thc plxy of x�amc. xuthorizcd b;� thc dircctor, thc outcomc of which
5.1z is dctcrmined entirely or pard�y chance. A gaming machine may award a player a prize
6. 13 in the form of money, tokens, prize slips, or other authorized consideration.
6.14 Sec. 1 L Minnesota Statutes 2010, section 349A.01, is amended by addi��g a
6. 15 subdivision to read:
6.16 Subd. 6b. Gaming machine game. "Gamin�* machine �ame" means a game
6.1� �nerated h�L�amine machine as authorized bv the direc[or.
a. ie Sec. 12. Mumesota Statutes 2010, scction 349A.01, is amendcd by adding a
6. 19 subtlivision to read:
5. zo Subd. Ga Caming machine �v. "Cminin� maclvne play" means an electronic
6. zl rccord tha[ provcs participation in a a� min� machinc game.
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2/16112 • H.F. Na 2338, as inUoduced - 871h Legisla[ive Session (2011-2012)
5.22 Sec. 13. Minnesota Statutcs 2010, section 349A.01, suhdivision 10, is amended to read:
6 Subd. 10. Lottery procurement contrac� "Lottery procmement contract" means a
6.24 contrac[ to provide lotteiy products, gamin� machines, mainte�k�.nce of ¢aming machines.
a.2s computer hacdwxre xnd sofhvare used to monitor sales of lottery tickets and a��
6.26 machu�e olavs, and lottery tickets. "Lottery prociuement conffact" docs not include
6• 2� a contract to provide an annuity or prize paymenl agrccmcnt or matcrials, supplics,
5. za equipment, or services common to thc ordmary operation of a state agency.
6.29 Sec. 14. Minnesota Stat�tes 201D, section 349A.10, subdivision 3, is ameiided to read:
6.30 Subd. 3. Lottery operations. (a) The da'cctor shall cstab}ish a bttery operations
6. 31 eccount in [he lottcry fimd. The director shall pay all costs of operating the lottery,
�.1 including payroll costs or amounts transfeired to the state treasury for payroll costs, but
�.2 not including lottery prizes, from the lottery operaling aecount The dircctor shall credit to
�.3 ��; loltcry operations account amounts sufficient m pay the operatnig costs of the lottery.
�� 4 (b) Except as provided in paragraph (e), the direclor may not crcdit in any fiscal
�- 5 year thereafter amounts to thc lottcry operations accouut which when totaled exceed
�� e nine percent uf gross rcvcnue to the bttery fund in that fiscal year. In computing total
��� amounts credited to the bttery operations account under this paragraph the duector shall
�. a disregard amounts hansferred to or retained by lottery rctadcrs as salcs coiiimissions or
�� 9 othcr compcnsation aud amounts transferred or retained by a racetrack under a]ocation
�.10 contract under section 349A.17
�.11 (c) "I'he director of thc bltcry may not cxpend aftcr July 1, 1991, rnore than 2-3/4
�• 12 perccnt of goss revenues in a fiscal year for contracts for the preparation, pubfication, and
�. i3 placement of advertising.
�. i4 (d) Exccpt as the daector deCermines, the Iottery is not subject to cl�apter l6A
�, is relating to budgeting, payroll, a��d the purchase of goocls and services.
7.16 (e) In addition to the amounts credited to the bttery operalions account undcr
�� i� para�aph (b), the director is authorizcd, if ncccssary, to tnect the current obligations of
�. le thc lottery and to credit up to 25 percent of' an amount equa] to the average annual amount
�. i9 which was authorized to be crediled tA the lotlery operations aecount for thc prcvious thrce
�• zo fiscal ycars but was not needed to meet the obligations of the lottery.
�.�i Sec. 15. Minnesota Statutes 2010, scction 349A.13, is amcnded to rcad:
�.2z 349A13 RESTRICT�ONS.
�.23 Nothing in this chapter:
�.24 (1) authorizcs the ducctor to conduct a lottery game or contest the wuu�er or wuuiers
�. zs of which arc dctermincd by the result of a sporting event other than a horse race conducted
�.ze underchapter24U;
���� (2) authorizes the director to install or operate a bttery device operated by coin or
�-28 currency wlvch when operated detennines Ihe wn�ner of x gamc, exccpt as authorized
� ��9 under section 349A.17; and
�.so (3) authorizes tl�c director to sell pull-tabs as defined imder section 349.12,
�.31 subdivision32.
� � Sca 16. [349A.171 GAMING MACHiNES.
7.33 Subdivision L Location contract (al The director maV enter into a contract with
7.34 a nerson to provide Iceations for gamm� machines. Contracts entered inip undex this
a. i scction arc not subject to chapTer 16C. The director may only enter a contract under this
e.2 subdivision with a person who holds a class A license under chapter 240. The gaming
a.3 macl�v�es nuy only bc �laccd at thc racchack for which thc class A liccnsc undcr chaptcr
e� 4 240 was issued. Contracts entered into under this section are void if tl�e racetrack: (� has
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2/16/12 H.F. Na 2338, as introduced - 87th Legislative Session (2011-2012)
e.s nol hostcd at Icast 75 davs of live racing. authorized bv thc Minnesota RacinQ Comnvssion,
e. e dw ina the previoas year, or Ll has not been approvcd, unlcss approval is pendin¢. f'or at
a�� Least 75 days of livc raca�g durine the present year. In the case of licensees authorized to
e� g conduct racinu Cor onlv one bcced of horse. the Gve racing requirement is 50 days.
e• 9 (bl The director may cancel. suspend_ or refuse to renew the location contrnct
s.10 if thc �ers�n_
e.11 (11 fails to accowtt for procecds from the �amine machines:
e.12 (21 f'ails to remit fimds to the director in accordance wilh ll�c location contract;
a.13 (31 violates a law. �ule, or order of the ciireclor;
e_ 19 (41 fails tc� com�l,v with a matcrial tcrm of the location contract: or
a. is (51 has acted in a manner prejudicial to the public confidence ui the intekrilv of thc
B.16 �nera[ion of the a�� machmes.
e.1� The cancellalion, suspcnsion, or refusalto renew the location contract is a contested
e.1a cxse imder seclions L4.57 to 14.69.
e.19 (cl Conhacts en[ered into under this section must provide for compcnsation to thc
a. zo racetrack and itc horsepersons ni recot�vtion of goods. scrviccs, and facilities provided
e.21 e�enses, risk fxctors, and losses. Compensation shall be in an amount equal to at least thc
e. z2 followine percentages of adjusted gross �amin�r nuch�c revenue �euerated at the track�
a.23 (ll of the t7rst �150,000,000 of annual ad�usted gross gaming machine revenue.
a.2a 52 8 perccnl tu thc licenscc and 7 2 percent to the Minnesota Racnt¢ Commission to bc
e.25 dcnosited in the equine industry improvement fimd establ�shed imder scction 2A0. l3.
e.2e subdivision Sa:
a.2� (2) of aimual adjusted r�oss Qamina machine revenue between $I50.000,000 and
a.2e $200 p00 000 48 4 percent to the licensee and 6 C percent to the Minnesota Raci�i�
s_ 29 Commission to be deposited in the equine indusU;v improvcment fund established under
a.3o section 240.13. subdivision Sa; and
a.3i (3) of annual adjusted gross gamin��nachine revenuc in execss of $200.000.000.
&.32 39 6 percent to the licensee and 5 4 percent to the Minncsota Racin� Commission to be
8.33 denosited in the equine industry unprovemenl fiuid established ander section 240 13.
8.39 su�ivision Sa.
9.1 (dl A licenaee muct annuallv remit one percent of thc compcnsation it receives
9� 2 pursuant to this seclion to thc city, and one percent to the county in which the licensee
9�3 conducts racine.
9 � 4 Subd. 2 Oocratio�. (al All gan�ig u�chines that arc �laced at a racetrack under
9� 5 subdivision 1 must bc opera[ed and controlled bv the director.
9 � 6 (bl Gaming machines must be owned or leased by the dircctor, howcver. the tinancial
9- � resnonsibility for all other activitics rclalcd to thc eamin f� acility including, Uut not
9. a limitcd to, advertisin�, marketing. facili � expenses. staffin�, security, xnd survcillance.
9. 9 shall be borne bv the holder of the bcatioii contract.
9.10 (cl ('ram'viQ n�chuies inus� be maintaincd by the lotterv. or bv a vendor tl�at is wider
9.11 thc control and direction of the director.
9.12 (dl The dfrector mast have a cen[ral conununications system that monitors activities
9. 13 on each �� machinc The central communications svstem mast Ue located at a
9. � lottcr�office.
9. is (el The director mast akprnve and oversee the �ei�eral security arraneements
9. 16 associated wit11 and relaling to the operation of the Raming machines and implement
9. proccdiu'cs as dccmcd appropriate.
9 � 18 (fl Advertising and promotional mx[erial produccd bv the racetrack relating to
9 � 19 gammg machmcs located at the facilitv must be approved Uv the d'n
9.zo j,gl The director mav implement such o[her conhols as are deemed nccessarv for the
9-21 oneration of gaming machincs undcr this scction.
9.22
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2116l12 • H.F. No. 2338, as introduced - 87th Legislative Session (201 b2012)
• Subd. 3. Soecifications. Cr�ming machines must be capable of being linked
9.23 electronicallv to a central conununications systcm to provide auditm�progam inforn�ation
9��4 asreyyircdbythedirector.
9.25 Subd. 4 Games. The ciirector shall specify thc ;ames that may be placed on
9. z6 a gaming machine as provided in section 349A.04. Ganvn� inachutes may conduct
9-2� pari-mutuel wageruig and ciisU]aV horse races imder specificxtions provided by lhe dueclor.
9. za Subd. 5. Esamination of maehines. The duector shall exaailne prototy�pes of
9• z9 �g machines and require that the manufacturer of the machine pav the cost of the
9.3o examination. Thc dffcelor mav contract for thc examinadon of *a� ming machines.
9.31 Subd 6 Testing of machines. The director may require working models of a
9. 32 R�� �chi�e to be transnorted tn the locations the director desi,�nates for testing,
9.33 examination_ and analvsis. The manufacturer shall pay all costs for testui�=, exami��ation.
9.3 nnalvsis. and t�ansportation of the machine model.
9. 35 Subd. 7. Prizes. A nerson who �vs a gamuzg inacli'vie agrees to be bowid b, t�ti he
9.36 rules and Qame procedures applicable to that particular gaming machine game. Thc player
10 .1 acknowledges that tlie determination of whcther lhc �ycr has won a prizc is subject tc�
io . z the rules and t�amc procedures adopted bv the director, claitn procedures established bk
io .3 the director for Che eame. and any confidential or puUlic validation tests establiehed bti
io . a il�e diroclor Cur the game. A person under 18 years of age rnay not claan a prizc from thc
10.5 ooeration of a Raming machine. A prize daimed from the � of a gaming machine �eame
io . e is not subject to scction 349A.08, subdivision 8.
10 . � Subd. 8. Yrohibitions. Ll A ncrson undcr thc agc of 18 ycars ma,v not �la,y a
10 . a game on a earni� machine.
io . 9 (61 The duector or any em�vec of thc lottcry, or a mcmbcr of the irruncdiale familX
io. io cesidin� in the same houschold. may not play a eame on a gamin� machinc or receive a
10.11 prize from the o�eration of a gaming machine.
io.12 Subd 9. Compulsive gambling nutice. The director shall prominently�ost, in the
10. i3 arca whcrc the gammg machmes are locatcd, the tol!-frec telcbhone number established
10.19 �[he conunissioner of human services in coru�ection with the compulsive aig nblv�g
io. is �,�dm established under scction 245.98. Thc dffcetor and thc location provider shxll
10.16 cstablish a rosponsible gambGng plan in consultation with the National Council on
10.17 Problem Gambling or the Minnesota affiliate. Bv January 15 of each year, the director
1o.1e shall submil a rcport to thc Iceislahuc. of not more than five pagcs in Icngth, scllin fe orth
l0.19 the status of the responsible gamblin�p4�n.
io.zo Subd. 10. Local licenses. Exccpt as providcd in subdivision 1. parx�ranh (dl.
io.2i no political subdivision may require a license to o,perate a�aming machine, restrict or
1o.2z re�ulate the placement of �g machines, or unpose a tax or fee on d�e business of
io.z3 �perating�amingmxchincs.
io.2a Sec. IZ Minnesota Statutes 2010, section 541.20, is amended to read:
io.2s 541.20 RF.COVERY OF MONEY LOST.
io.z5 Every person who, by playing at cards, dice, or other game, or by betting on tlie
io.z� hands or sides of such as are gambling, shall lose to any person so playing or betting
1o.2e any smn of money or any gouds, and pays or deGvcrs the same, or any part tliereof, to
io.29 the wmner, may sue for and recover such money by a civil action, before any cowt
10.3o nf competentjurisdiction. For purposes of tivs section, gambluig shall not include
10.31 pari-muluel wxgcring eonducted under a license issucd pursuant [o chapter 24Q pmchase
io.3z or sale of tickets in the state lottery, purchase of gaming machine plavs as authorizcd undcr
10.33 cliapter 349A. or gamblmg authoriud under chapters 349 and 349A.
ii . i Sec. 18. Minnesota Sta[utes 2010, section 541.21, is amended to read:
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2/16112 H.F. Na 2338, as introduced - 871h Legislative Session (201 b2012) �
11.z 541.21 COMMITMF.NTS FOR G.4�4BLING DEBT VOID.
11. 3 Every note, bill, bond, mortgage, or ather security or conveyance in which the whole
11. 9 or any part of the consideration shall be for any inoney or goods won by gambling or
11. s playing at cards, dice, or xny other game whatevcr, or by bcttuig on the sides or hands
11. 5 of any person gambling, or for rcimbursing or repaying any money knou�ingly lent or
11. � advanced at the time and placc of such gambling or betting, or lenl and advanccd for any
il . a gambling oc betting to any persons so gambling or betting, shall be void and of no effect
il. 9 as belween the partics to the samc, and as to all persons except such as hold or clann
ii . io under them in good faidi, without notice of the illeoaliry of the consideration of such
ii.11 contract or conveyance. The provisions of this scclion shall not apply to: (1) pari-mutuel
11. iz Wagcring conductcd under a license issued pursuant to chapter 240; (2) purchase of tickcts
11.13 in t}te state lottery or other wagering autl�orized under chapCer 349A; (3) gammg activities
li.l9 couducted pursuant m the Indian Crnining Regulatory Act, United Statcs Code, title 25,
ii. is section 2701 et seq.; or (4) lawful gambling activilics permitted under cliapter 349.
ii. is Sec. 19. Minnesota Stat�rtes 201Q section 609.75, subdivision 3, is amcnded m read:
11.1� Subd. 3. What are not bets. The following are not bets:
1i .18 (1) a contract to insure, indemnify, guarantee or otherwise compensate anothcr for a
li. l9 harm or loss sustanied, even thougl� the k�ss depends upon chance;
11.20 (Z) d �ontract for thc purchase or sale at a fuhtre date of securities or other
ii.zi commodities:
11.22 (3) offers of purscs, prizcs or prcmiums to the actual contestants in any bona fide
11. z3 contcst for the detemtination of skill, speed, strength, endurance, or quality oc to the bona
11.29 fide owners of animals or other properry entered ni sucli a contest;
11 _ z5 (4) the game of bnigo when conductcd in compliance with sections 349_ 11 to 349.23;
ii.26 (5) a privatc social bet not part of or incidenta] to organized, commercialiud, or
11. z� systemalic gambling;
1i.2e (6) the operation of equipment or the conduct of a raffle mider sections 349.11 to
11. z 9 34922 , by an organization ficevsed by the Gnmbl��g Conh Board or an organization
11. 3o excmpt from liecnsuig under section 349J 66;
11.3i (7) pari-mutuel betting on horse racing when [he bcltina u co�ducted under chapter
ii.3z 240; and
11.33 ($) the purchase and sale of state lottery tickets and activities conductcd at a
11 .34 licemed racetrack pursuant to a�amuig machine loca[ion contract as authorized under
11.3s chapter 349A.
12.1 Sec. 20. hlinnesota Slatules 2010, scction 609.761, subdivision 2, is amended to read:
1z.2 Subd. 2. State lottery. Scctions 609.755 and 609.76 do not prohibit the operation of
12.3 the state lottery nr the sale, possession, or purchase of tickets for the state lottery under
1z.9 chapter 349A or lhe manufactura posscssion, sale, or operation of a�g machnie
iz.s undcr chapter 349A.
12. e Sec. 2L LOTTERY BUDGET.
1z .� Thc dircclor oF thc Statc Lottery shall submit a hudget for the operation and control
iz . e of Qaminv machinec to the commissioner of manaeement and budget No[withstandine
iz 9 Mmnesota Statutes, secliun 349A 10, subdivision 6, the director of the State Lotterv
iz . io mav expend amounts necessary to operate and control the a�� machines. Amounts
1z .11 exoended bv tha dircctor of die State Lottery for dic o�cralion and control of the Qamine
12.1z machines in fiscal �ars 2013 and 2014 arc not subject to the maximwn amouut set in law
12.13 for t6e operation of the lotterX
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2116l12 • H.F. No. 2338, as introduced - 87Ih Legislative Session (2011-2012)
1z.1a Sca 22. REPEALF.R.
i2. is Minnesota Statutes 2010. section 240.30. suUdivision 8. is repealed.
1z.16 ARTICLE 2
1 z .1 � EDUCATION
iz.ia Section l. RACINO REVENUE.
iz.l9 Subdivision l. Allocation. One percent of the revenue transmitted to the
iz.zo commissioncr undcr Minncsota Stahitcs. scction 297A.651, must bc dcposi(cd in a
12.21 compulsn e gamUling treahnent and education account ui the suecial revenue fund. Tlie
i�.�� rcn�inder of thc revcnuc must bc dcpositcd ni a spccial account in thc st�ite treaswy as
iz.zs provided in subdivision 3.
12-29 Subd. 2. Compulsive gambling: aooropriations.One-halfofthe monevui
iz.2s the cmnpulsive gambling treatment and education account is annually appropriated to
i2.z5 thc cottvnissioncr of human scrviccs for ihc compulsivc gamblinQ d'calment pro,,am
12.2� established imder Minnesota Statutes section 245.98. One-half of the monev in the
iz.ze compulsivc gambtm� trcatment and cducation account is annually antiroori�Led to tl�e
12 _ 29 Gambling Control Board for a�rant to the state affiliatc reco ue izcd bv Ihe Nalional Coui�cil
iz.3o on problem Gamblina to increase public awareness of proUlem gamUling, education
1z.31 and traming for mdividuals and organvalions providm� cffectivc treahnent services to
12.32 problem gamblers aud theu families, and research relating m problem ag mbling.
13.1 Subd. 3. Education. A special accoimt i5 established in the state treasury, consistin�
13. z of n�oney deposited undcr Minnesota Statutes, section 297A.651, xnd any nuerest earned
13.3 d�ereon. Monev ui this account mav not be spent unless a�prooriated by l�iw and is
13.4 dedicatcd:
i3. 5 (1) to incrcase the aid pavment schedule for school dishict aids and eredits p�y�nents
13. 6 in section 127A.45. to not more than 90 percent rounded to the nearest tenth of a percent
13. � without exceeding the amount available and with anv remani�g funds deposited in the
i3. a budget reserve: and
13. 9 (2) to restore all or a nortion of the net aid reduction under section 127A.441 _ and to
13.10 rcducc thc properly tax rcvcnuc rccoenition shifl undcr scction 123B.75. subdivision 5.
13.11 para�h (al.
13.1z ARTICLE 3
13 .13 NIISCELLANEOU5
i3.1g Section 1. SEVERABILITY: SAVINGS.
13.15 If any orovision of Yhis act is f'ound to be invalid because it is in conflict with a
13. 16 provvio� of the Mimiesota Constitution or [he Conslitu[ion of the United States_ or for an,�
13.1� other reason. all other provisions of this act shall remain valid and anv ri�*hts, remedies.
13.1e and Qrivilcgcs lhat have bcen othcrwisc accrued bv this acC shall remain in effect and maX
13. 19 be procecded with and conctuded iuider this act.
is.2o Sca 2. EFFECTIVE DATE.
13.21 This act is effective the day followirm� final enactrnent
_ _.
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to your House Member or State Senator.
For Legislati�e Staff or for directions to the Capitol, �isit the Contact Us page.
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2/16/12 H.F. No. 2338, as introduced - 87th Legislative Session (2011-20�2) �
las[ updated: 02/O6/2072 ,
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