1.1                          A bill for an act 
  1.2             relating to gambling; allowing a class B licensee of a 
  1.3             class A racetrack to conduct card club activities; 
  1.4             appropriating money; amending Minnesota Statutes 1998, 
  1.5             sections 240.01, by adding subdivisions; 240.10; and 
  1.6             240.155, subdivision 1; proposing coding for new law 
  1.7             in Minnesota Statutes, chapter 240. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1998, section 240.01, is 
  1.10  amended by adding a subdivision to read: 
  1.11     Subd. 24.  [CARD CLUB.] "Card club" means a facility or 
  1.12  portion of a facility where the commission has authorized a 
  1.13  licensee to conduct card playing. 
  1.14     Sec. 2.  Minnesota Statutes 1998, section 240.01, is 
  1.15  amended by adding a subdivision to read: 
  1.16     Subd. 25.  [CARD PLAYING.] "Card playing" means an activity 
  1.17  wherein individuals compete and wager with each other utilizing 
  1.18  a 52-unit system comprised of a series of numbers, numbered 2 
  1.19  through 10, and the letters J, Q, K, and A, combined with four 
  1.20  symbols commonly known as hearts, diamonds, spades, and clubs, 
  1.21  wherein each individual unit constitutes the display of one of 
  1.22  the 52 possible combinations.  The symbol commonly known as a 
  1.23  joker may be incorporated into the system. 
  1.24     Sec. 3.  Minnesota Statutes 1998, section 240.01, is 
  1.25  amended by adding a subdivision to read: 
  1.26     Subd. 26.  [UNBANKED.] "Unbanked" means a wagering system 
  2.1   or game where the individual participants compete against each 
  2.2   other and not against the sponsor or house.  In an unbanked 
  2.3   system or game, the sponsor or house may deduct a percentage 
  2.4   from the accumulated wagers and impose other charges for hosting 
  2.5   the activity, but does not have an interest in the outcome of a 
  2.6   game.  The sponsor or house may add additional prizes, awards, 
  2.7   or money to any game for promotional purposes. 
  2.8      Sec. 4.  Minnesota Statutes 1998, section 240.10, is 
  2.9   amended to read: 
  2.10     240.10 [LICENSE FEES.] 
  2.11     The fee for a class A license is $10,000 per year.  The fee 
  2.12  for a class B license is $100 for each assigned racing day on 
  2.13  which racing is actually conducted, and $50 for each day on 
  2.14  which simulcasting is authorized and actually takes place.  The 
  2.15  fee for a class D license is $50 for each assigned racing day on 
  2.16  which racing is actually conducted.  The fee for a card club 
  2.17  license is $250,000 per year.  Fees imposed on class B ~~and~~, 
  2.18  class D, and card club licenses must be paid to the commission 
  2.19  at a time and in a manner as provided by rule of the commission. 
  2.20     The commission shall by rule establish an annual license 
  2.21  fee for each occupation it licenses under section 240.08 but no 
  2.22  annual fee for a class C license may exceed $100.  
  2.23     License fee payments received must be paid by the 
  2.24  commission to the state treasurer for deposit in the general 
  2.25  fund. 
  2.26     Sec. 5.  [240.135] [CARD CLUB REVENUE.] 
  2.27     From the amounts derived from charges authorized under 
  2.28  section 240.30, subdivision 4, the licensee shall set aside the 
  2.29  amounts specified in this section to be used for purse payments 
  2.30  or to be deposited in the breeders fund.  These amounts are in 
  2.31  addition to the breeders fund and purse requirements set forth 
  2.32  elsewhere in this chapter. 
  2.33     (a) For the first $3,000,000 deducted by the licensee in 
  2.34  any year, the licensee shall set aside six percent to be used as 
  2.35  purses. 
  2.36     (b) For amounts between $3,000,000 and $6,000,000, the 
  3.1   licensee shall set aside ten percent to be used as purses. 
  3.2      (c) For amounts in excess of $6,000,000, the licensee shall 
  3.3   set aside 14 percent to be used as purses. 
  3.4      (d) From all amounts deducted, the licensee shall set aside 
  3.5   one percent to be deposited in the breeders fund.  The licensee 
  3.6   and the horseperson's organization representing the majority of 
  3.7   horsepersons who have raced at the racetrack during the 
  3.8   preceding 12 months may negotiate percentages different from 
  3.9   those stated in this section if the agreement is in writing and 
  3.10  filed with the racing commission. 
  3.11     (e) From all amounts deducted, the licensee shall set aside 
  3.12  ... percent.  This amount must be transmitted to the state for 
  3.13  deposit in the general fund.  These amounts are appropriated to 
  3.14  the commissioner of human services for the compulsive gambling 
  3.15  treatment program under section 245.98. 
  3.16     Sec. 6.  Minnesota Statutes 1998, section 240.155, 
  3.17  subdivision 1, is amended to read: 
  3.18     Subdivision 1.  [REIMBURSEMENT ACCOUNT CREDIT.] Money 
  3.19  received by the commission as reimbursement for the costs of 
  3.20  services provided by assistant veterinarians, stewards, and 
  3.21  medical testing of horses, and for costs related to card club 
  3.22  regulation and enforcement, must be deposited in the state 
  3.23  treasury and credited to a racing reimbursement account, except 
  3.24  as provided under subdivision 2.  Receipts are appropriated to 
  3.25  the commission to pay the costs of providing the services. 
  3.26     Sec. 7.  [240.30] [CARD CLUBS.] 
  3.27     Subdivision 1.  [CARD CLUB LICENSES.] The commission may 
  3.28  license a class B operator of a class A racetrack to operate a 
  3.29  card club at a racetrack licensed under section 240.06 and offer 
  3.30  card playing services to patrons. 
  3.31     Subd. 2.  [SUPERVISION.] The authorized licensee is 
  3.32  responsible for conducting and supervising the card games, 
  3.33  providing all necessary equipment, services, and personnel, and 
  3.34  reimbursing the commission for costs related to card club 
  3.35  regulation and enforcement. 
  3.36     Subd. 3.  [TYPE OF WAGERING.] All card club wagering 
  4.1   activities must be conducted in an unbanked system. 
  4.2      Subd. 4.  [CHARGES.] The authorized licensee may charge 
  4.3   patrons for card playing services by deducting and retaining 
  4.4   money from wagers, by charging a fee based on playing time, or 
  4.5   by any other means authorized by the commission. 
  4.6      Subd. 5.  [LIMITATION.] The commission shall not allow a 
  4.7   licensee to operate a card club unless the licensee has 
  4.8   conducted at least 50 days of live racing at a class A facility 
  4.9   within the past 12 months or during the preceding calendar year. 
  4.10     Subd. 6.  [PLAN OF OPERATION.] (a) The commission shall not 
  4.11  authorize a class B licensee to operate a card club unless the 
  4.12  licensee has submitted, and the commission approved, a plan of 
  4.13  operation for card playing activities.  The plan must set forth 
  4.14  all necessary details for conducting card playing activities 
  4.15  including, among other things: 
  4.16     (1) specifying and defining all card games to be played, 
  4.17  including all governing aspects of each game; 
  4.18     (2) time and location of card playing activities; 
  4.19     (3) amount and method by which participants will be charged 
  4.20  for card playing services; 
  4.21     (4) arrangements to ensure the security of card playing 
  4.22  activities; 
  4.23     (5) designation of all licensed employees of the licensee 
  4.24  who undertake supervisory positions related to card playing 
  4.25  activities; and 
  4.26     (6) internal control systems for card playing activities. 
  4.27     (b) The licensee must prepare and make available to all 
  4.28  customers a written manual that covers all portions of the 
  4.29  current plan of operation.  The licensee must also publish, in 
  4.30  pamphlet form, a condensed and comprehensive version of the 
  4.31  manual and make it available to all customers. 
  4.32     Subd. 7.  [AMENDMENTS TO PLAN; VIOLATIONS.] The licensee 
  4.33  may amend the plan of operation with the approval of the 
  4.34  commission.  The commission may withdraw its approval of a plan 
  4.35  of operation.  Card playing activities are deemed to be relevant 
  4.36  to the integrity of racing in Minnesota.  An act of the licensee 
  5.1   that is contrary to the licensee's approved plan of operation is 
  5.2   deemed to be a violation of an order of the commission for 
  5.3   purposes of section 240.26, subdivision 3.  An act of the 
  5.4   licensee that is contrary to the licensee's approved plan of 
  5.5   operation, and any violation of this chapter related to card 
  5.6   playing activities, is deemed to be detrimental to the integrity 
  5.7   of racing in Minnesota. 
  5.8      Subd. 8.  [LIMITATIONS.] The commission may not approve any 
  5.9   plan of operation under subdivision 6 that exceeds any of the 
  5.10  following limitations: 
  5.11     (1) the maximum number of tables used for card playing at 
  5.12  the card club at any one time may not exceed 50; 
  5.13     (2) the opening wager by any player in any card game may 
  5.14  not exceed $15; and 
  5.15     (3) no single wager that increases the total amount staked 
  5.16  in any card game may exceed $30. 
  5.17     Subd. 9.  [REIMBURSEMENT TO COMMISSION.] The commission may 
  5.18  require that the licensee reimburse it for the commission's 
  5.19  actual costs of regulating the card club.  Amounts received 
  5.20  under this subdivision must be deposited as provided in section 
  5.21  240.155, subdivision 1.  
  5.22     Sec. 8.  [EFFECTIVE DATE.] 
  5.23     Sections 1 to 7 are effective the day following final 
  5.24  enactment.