1.1 	A bill for an act
1.2 	relating to gambling; providing for operation of
1.3 	lottery gaming machines and the conduct of other
1.4 	nonlottery games at a gaming facility; licensing and
1.5 	regulating the gaming facility; imposing a gaming
1.6 	transaction fee on gaming at the gaming facility;
1.7 	appropriating money; amending Minnesota Statutes 2004,
1.8 	sections 240.13, by adding a subdivision; 240.135;
1.9 	240.30, subdivision 1; 299L.07, subdivisions 2, 2a;
1.10 	340A.410, subdivision 5; 349A.01, subdivision 10, by
1.11 	adding subdivisions; 349A.04; 349A.10, subdivisions 3,
1.12 	6; 349A.13; 541.20; 541.21; 609.75, subdivision 3;
1.13 	609.761, by adding a subdivision; proposing coding for
1.14 	new law in Minnesota Statutes, chapters 16A; 299L;
1.15 	349A.
1.16 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.17 	ARTICLE 1
1.18 	LOTTERY OPERATIONS

1.19 	Section 1. PURPOSE.
 1.20 	The purpose of articles 1 to 6 is to:
1.21 	(1) recognize the significant inequities created by the
1.22 	current status of casino gaming in Minnesota given the extreme
1.23 	disparity in revenues generated by tribal casinos for
1.24 	Minnesota's Indian tribes and tribal members and the lack of any
1.25 	significant direct revenue to the state of Minnesota;
1.26 	(2) provide an opportunity for increased economic
1.27 	development and tribal self-sufficiency to tribal governments
1.28 	which, because of their locations and tribal populations, have
1.29 	not benefited significantly from gaming opportunities under the
1.30 	federal Indian Gaming Regulatory Act, United States Code, title
2.1 	25, sections 2701 to 2721;
2.2 	(3) provide for the generation of revenues to the state,
2.3 	including proceeds for distribution as set forth in the
2.4 	Minnesota Constitution, article XI, section 14; and 
2.5 	(4) establish a structure that promotes tribal sovereignty
2.6 	and self-governance and that provides revenues from casino
2.7 	gaming to tribal governments for the development of programs to
2.8 	alleviate persistent poverty conditions and to advance tribal
2.9 	goals.

2.10 	Sec. 2. Minnesota Statutes 2004, section 349A.01,
2.11 	subdivision 10, is amended to read:
2.12 		Subd. 10.Lottery procurement contract.  "Lottery
2.13 	procurement contract" means a contract to provide lottery
2.14 	products, gaming machines, maintenance of gaming machines,
2.15 	computer hardware and software used to monitor sales of lottery
2.16 	tickets and gaming machine plays, equipment used to conduct and
2.17 	monitor other lottery games at a gaming facility, equipment used
2.18 	for the conducting of other lottery games, and lottery tickets.
2.19 	"Lottery procurement contract" does not include a contract to
2.20 	provide an annuity or prize payment agreement or materials,
2.21 	supplies, equipment, or services common to the ordinary
2.22 	operation of a state agency.

2.23 	Sec. 3. Minnesota Statutes 2004, section 349A.01, is
2.24 	amended by adding a subdivision to read:
2.25 		Subd. 14.Gaming facility. "Gaming facility" means the
2.26 	site selected for the location of gaming machines and the
2.27 	conduct of other lottery games pursuant to a location contract
2.28 	under section 349A.17 and nonlottery casino games pursuant to a
2.29 	plan of operation approved under section 299L.094.

2.30 	Sec. 4. Minnesota Statutes 2004, section 349A.01, is
2.31 	amended by adding a subdivision to read:
2.32 		Subd. 15.Gaming machine. "Gaming machine" means any
2.33 	machine, system, or device which, upon payment of consideration
2.34 	in order to play a game, may award or entitle a player to a
2.35 	prize by reason of skill of the player or application of the
2.36 	element of chance, or both.

3.1 	Sec. 5. Minnesota Statutes 2004, section 349A.01, is
3.2 	amended by adding a subdivision to read:
3.3 		Subd. 16.Gaming machine game. "Gaming machine game"
3.4 	means a game operated by a gaming machine as authorized by the
3.5 	director.

3.6 	Sec. 6. Minnesota Statutes 2004, section 349A.01, is
3.7 	amended by adding a subdivision to read:
3.8 		Subd. 17.Gaming machine play. "Gaming machine play"
3.9 	means a record that proves participation in a gaming machine
3.10 	game.

3.11 	Sec. 7. Minnesota Statutes 2004, section 349A.01, is
3.12 	amended by adding a subdivision to read:
3.13 		Subd. 18.Adjusted gross gaming machine
3.14 	revenue. "Adjusted gross gaming machine revenue" means the sum
3.15 	of all money received for gaming machine plays less the amount
3.16 	paid out in prizes and for gaming machine games and promotional
3.17 	allowances approved by the director under section 349A.17.

3.18 	Sec. 8. Minnesota Statutes 2004, section 349A.01, is
3.19 	amended by adding a subdivision to read:
3.20 		Subd. 19.Other lottery game. "Other lottery game" means
3.21 	any game operated by the lottery at the gaming facility other
3.22 	than a gaming machine, where money or property are distributed
3.23 	to persons selected primarily by chance from among participants
3.24 	who have paid for a chance of being selected and any other game
3.25 	or activity determined to constitute a lottery within the
3.26 	meaning of the Minnesota Constitution, article XIII, section 5.
3.27 	Other lottery games do not include lottery games that are
3.28 	operated by the lottery at the gaming facility that are also
3.29 	sold by lottery retailers.

3.30 	Sec. 9. Minnesota Statutes 2004, section 349A.01, is
3.31 	amended by adding a subdivision to read:
3.32 		Subd. 20.Other lottery games adjusted gross
3.33 	revenue. "Other lottery games adjusted gross revenue" means the
3.34 	sum of all money from the operation of other lottery games at
3.35 	the gaming facility, less the amount paid out in prizes in the
3.36 	other lottery games and promotional allowances approved by the
4.1 	director under section 349A.17.

4.2 	Sec. 10. Minnesota Statutes 2004, section 349A.04, is
4.3 	amended to read:
4.4 	349A.04 LOTTERY GAME PROCEDURES.
4.5 	The director may adopt game procedures governing the
4.6 	following elements of the lottery:
4.7 	(1) lottery games;
4.8 	(2) ticket prices;
4.9 	(3) number and size of prizes;
4.10 	(4) methods of selecting winning tickets; and 
4.11 	(5) frequency and method of drawings;
4.12 	(6) gaming machine games;
4.13 	(7) cost of gaming machine plays;
4.14 	(8) other lottery games; and 
4.15 	(9) cost to participate in other lottery games.
4.16 	The adoption of lottery game procedures is not subject to
4.17 	chapter 14.

4.18 	Sec. 11. Minnesota Statutes 2004, section 349A.10,
4.19 	subdivision 3, is amended to read:
4.20 		Subd. 3.Lottery operations.  (a) The director shall
4.21 	establish a lottery operations account in the lottery fund.  The
4.22 	director shall pay all costs of operating the lottery, including
4.23 	payroll costs or amounts transferred to the state treasury for
4.24 	payroll costs, but not including lottery prizes, from the
4.25 	lottery operating account.  The director shall credit to the
4.26 	lottery operations account amounts sufficient to pay the
4.27 	operating costs of the lottery.
4.28 	(b) Except as provided in paragraph (e), the director may
4.29 	not credit in any fiscal year thereafter amounts to the lottery
4.30 	operations account which when totaled exceed 15 percent of gross
4.31 	revenue to the lottery fund in that fiscal year.  In computing
4.32 	total amounts credited to the lottery operations account under
4.33 	this paragraph the director shall disregard amounts transferred
4.34 	to or retained by lottery retailers as sales commissions or
4.35 	other compensation and amounts transferred to or retained by the
4.36 	tribal entity or racetrack pursuant to a location contract under
5.1 	section 349A.17.
5.2 	(c) The director of the lottery may not expend after July
5.3 	1, 1991, more than 2-3/4 percent of gross revenues in a fiscal
5.4 	year for contracts for the preparation, publication, and
5.5 	placement of advertising.
5.6 	(d) Except as the director determines, the lottery is not
5.7 	subject to chapter 16A relating to budgeting, payroll, and the
5.8 	purchase of goods and services.
5.9 	(e) In addition to the amounts credited to the lottery
5.10 	operations account under paragraph (b), the director is
5.11 	authorized, if necessary, to meet the current obligations of the
5.12 	lottery and to credit up to 25 percent of an amount equal to the
5.13 	average annual amount which was authorized to be credited to the
5.14 	lottery operations account for the previous three fiscal years
5.15 	but was not needed to meet the obligations of the lottery.
5.16 	(f) Notwithstanding the provisions of this subdivision, the
5.17 	director may not credit, in any fiscal year, to the lottery
5.18 	operations account which when totaled exceed ten percent of
5.19 	adjusted gross revenue from the operation of gaming machines and
5.20 	other lottery games at each gaming facility.

5.21 	Sec. 12. Minnesota Statutes 2004, section 349A.10,
5.22 	subdivision 6, is amended to read:
5.23 		Subd. 6.Budget; plans.  The director shall prepare and
5.24 	submit a biennial budget plan to the commissioner of finance.
5.25 	The governor shall recommend the maximum amount available for
5.26 	the lottery in the budget the governor submits to the
5.27 	legislature under section 16A.11.  The maximum amount available
5.28 	to the lottery for operating expenses and capital expenditures
5.29 	shall be determined by law.  Operating expenses shall not
5.30 	include expenses that are a direct function of lottery sales,
5.31 	which include the cost of lottery prizes, amounts paid to
5.32 	lottery retailers as sales commissions or other compensation,
5.33 	amounts paid to produce and deliver scratch lottery games, and 
5.34 	amounts paid to an outside vendor to operate and maintain an
5.35 	online gaming system, amounts paid to an outside vendor to
5.36 	operate and maintain a central system for gaming machines and
6.1 	for other lottery games, and amounts paid to acquire and
6.2 	maintain gaming machines and equipment used to conduct other
6.3 	lottery games.  In addition, the director shall appear at least
6.4 	once each fiscal year before the senate and house of
6.5 	representatives committees having jurisdiction over gambling
6.6 	policy to present and explain the lottery's plans for future
6.7 	games and the related advertising and promotions and spending
6.8 	plans for the next fiscal year.

6.9 	Sec. 13. Minnesota Statutes 2004, section 349A.13, is
6.10 	amended to read:
6.11 	349A.13 RESTRICTIONS.
6.12 	Nothing in this chapter:
6.13 	(1) authorizes the director to conduct a lottery game or
6.14 	contest the winner or winners of which are determined by the
6.15 	result of a sporting event other than a horse race conducted
6.16 	under chapter 240;
6.17 	(2) authorizes the director to install or operate a lottery
6.18 	device operated by coin or currency which when operated
6.19 	determines the winner of a game except as authorized under
6.20 	section 349A.17; and
6.21 	(3) authorizes the director to sell pull-tabs as defined
6.22 	under section 349.12, subdivision 32.

6.23 	Sec. 14. [349A.17] GAMING FACILITY.
6.24 		Subdivision 1.Definitions. (a) For the purposes of this
6.25 	section, the terms defined in this subdivision have the meanings
6.26 	given them.
6.27 	(b) "Fiscal year" means the period between July 1 and June
6.28 	30.
6.29 	(c) "Racetrack" means an entity that holds a class A
6.30 	license from the Racing Commission under chapter 240.
6.31 	(d) "Racetrack location" means land owned by a racetrack as
6.32 	set forth in the racetrack's license application with the Racing
6.33 	Commission that is used to conduct horse racing and related
6.34 	activities under chapter 240.
6.35 	(e) "Tribal entity" means one or more entities, whether
6.36 	tribally or federally chartered corporations, or other legal
7.1 	entities, wholly owned by one or more tribal governments that
7.2 	are parties to the location contract under this section.
7.3 	(f) "Tribal government" means the governmental entity that
7.4 	represents one of the 11 federally recognized Indian tribes
7.5 	within the state of Minnesota.
7.6 	(g) "Site" means a parcel or contiguous parcels of land,
7.7 	and may be enlarged by the addition of contiguous parcels of
7.8 	land over time.
7.9 		Subd. 2.Location contract. (a) The director may enter
7.10 	into a contract with a tribal entity and a racetrack to provide
7.11 	locations for the operation of gaming machines and other lottery
7.12 	games.  The director may not enter into more than two location
7.13 	contracts for the operation of gaming machines and other lottery
7.14 	games under this section.
7.15 	(b) The director may enter into a contract with a racetrack
7.16 	under this section if the racetrack has conducted at least 50
7.17 	days of live racing at the racetrack each year within the last
7.18 	five preceding calendar years.
7.19 	(c) The director may enter a location contract with a
7.20 	tribal entity that meets the following criteria:
7.21 	(1) the tribal entity will operate a single gaming facility
7.22 	at one site which is on, adjacent to, or contiguous to a
7.23 	racetrack location on which the racetrack has conducted at least
7.24 	50 days of live racing each year within the last five preceding
7.25 	calendar years;
7.26 	(2) the tribal entity must be comprised of tribal
7.27 	governments which are each federally recognized tribes which
7.28 	operate current casino gaming operations under the federal
7.29 	Indian Gaming Regulatory Act, United States Code, title 25,
7.30 	sections 2701 to 2721, pursuant to a compact with the state of
7.31 	Minnesota;
7.32 	(3) to be eligible to participate in the tribal entity, the
7.33 	tribal government must demonstrate to the director that the
7.34 	revenues available to the tribal government from currently
7.35 	available revenue sources are insufficient to adequately meet
7.36 	the basic needs of tribal members including, but not limited to,
8.1 	housing, medical care, education, or other governmental services
8.2 	to members;
8.3 	(4) each of the tribal governments participating in the
8.4 	tribal entity must within 30 days following final enactment of
8.5 	this act file with the director a formal resolution from its
8.6 	tribal council which provides that:
8.7 	(i) the tribal government intends to participate in a
8.8 	tribal entity which will enter a contract that complies with the
8.9 	requirements of this act;
8.10 	(ii) the tribal government meets the eligibility criteria
8.11 	set forth in this paragraph and provides adequate documentation
8.12 	to supports its eligibility to participate in the tribal entity;
8.13 	(iii) a statement of the tribal government's intent to
8.14 	participate in a tribal entity that waives the entity's
8.15 	sovereign immunity relating to disputes arising out of the
8.16 	location contract or the construction, management, or operation
8.17 	of the gaming facility and that the tribal government expressly
8.18 	consents that the tribal entity will be subject to the
8.19 	jurisdiction of the state court and the administrative and
8.20 	regulatory jurisdiction of the state;
8.21 	(iv) a limited waiver of sovereign immunity and consent by
8.22 	the tribal government to the jurisdiction of state court solely
8.23 	to resolve disputes alleging that assets have been transferred
8.24 	from the tribal entity to the tribe in violation of the location
8.25 	contract or other applicable law and limited to any improperly
8.26 	transferred assets; and 
8.27 	(v) states the intention of the tribal government to ensure
8.28 	that revenues provided to the participating tribal governments
8.29 	from the tribal entity will be distributed between the
8.30 	participating tribal governments in a fair and equitable manner
8.31 	as determined solely by the participating tribal governments.
8.32 	(d) The location contract with the tribal entity shall have
8.33 	no legal effect on the validity of existing tribal-state gaming
8.34 	compacts.
8.35 	(e) A location contract entered into under this section
8.36 	must provide for the following provisions:
9.1 	(1) That the contract shall run for not more than 20 years
9.2 	and shall be negotiable and renewable every 15 years
9.3 	thereafter.  The director, tribal entity, participating tribal
9.4 	government, or racetrack that intends to not renegotiate and
9.5 	renew a location contract must, if reasonably possible, provide
9.6 	notice of its intent to the other parties at least one year
9.7 	before the location contract expires.
9.8 	(2) Liquidated damages to recover the initial investment by
9.9 	the tribal entity or the racetrack in the event the state,
9.10 	through legislation or constitutional amendment, revokes all or
9.11 	substantially all of the forms of gambling authorized under this
9.12 	section.  The liquidated damages may not be greater than the
9.13 	unpaid balance of any debt incurred by the tribal entity or the
9.14 	racetrack after the location contract has been executed and is
9.15 	limited to the debt incurred by the tribal entity or the
9.16 	racetrack for the gaming facility license, initial construction,
9.17 	or acquisition of the gaming facility less the present market
9.18 	value of the property or other assets related to the debt.  Any
9.19 	liquidated damages provision must expire within ten years.
9.20 	(3) All costs associated with managing the routine
9.21 	day-to-day activity of gaming machines and other lottery games,
9.22 	including, but not limited to, routine and minor service and
9.23 	maintenance, security monitoring, verifying winners, paying
9.24 	winners, collecting money from gaming machines, collecting
9.25 	wagers from the operation of other lottery games, and
9.26 	advertising and marketing of gaming machines and other lottery
9.27 	games shall be borne by the tribal entity or the racetrack.
9.28 	(4) All costs associated with purchase or lease of gaming
9.29 	machines, major maintenance of the gaming machines, and
9.30 	monitoring the activity of the gaming machines through a central
9.31 	system shall be borne by the lottery.
9.32 	(5) The tribal entity and the racetrack must maintain
9.33 	adequate liability and casualty insurance for the gaming
9.34 	facility.
9.35 	(6) Payment of a fee by the lottery to each entity that has
9.36 	entered into a location contract in an amount equal to 64
10.1 	percent of adjusted gross gaming machine revenue and other
10.2 	lottery games' adjusted gross revenue.
10.3 	(7) Payment by each entity that has entered into a location
10.4 	contract to the commissioner of human services in an annual
10.5 	amount equal to the lesser of 0.5 percent of adjusted gross
10.6 	gaming machine revenue, other lottery games' adjusted gross
10.7 	income, and nonlottery casino games' adjusted gross revenue or
10.8 	$2,500,000 at that gaming facility, for problem and compulsive
10.9 	gambling treatment or programs.
10.10 	(8) Payment by each entity that has entered into a location
10.11 	contract to the city and county where the gaming facility is
10.12 	located in an annual amount equal to one percent of adjusted
10.13 	gross gaming machine revenue, other lottery games' adjusted
10.14 	gross income, and nonlottery casino games' adjusted gross
10.15 	revenue at that gaming facility.
10.16 	(9) Any controversy or claim between the parties to a
10.17 	location contract that arises out of a location contract may be
10.18 	settled by arbitration except as provided in paragraphs (j) and
10.19 	(k).
10.20 	(10) Authorization for the operation of gaming machines and
10.21 	the conduct of other lottery games at a temporary facility
10.22 	pending completion of a permanent facility subject to reasonable
10.23 	conditions for the operation of the temporary facility set by
10.24 	the director.  The operation of gaming machines and the
10.25 	conducting of other lottery games at a temporary facility shall
10.26 	be treated in the same manner as if it was conducted in a
10.27 	permanent facility.
10.28 	(11) The tribal entity and the racetrack must establish
10.29 	internal controls to ensure that no person shall lose more than
10.30 	$500 per day at the gaming facility.  The internal controls
10.31 	shall specify the manner in which the $500 limit is enforced.
10.32 	(f) In addition to the provisions required under paragraph
10.33 	(e), the location contract with the tribal entity must contain
10.34 	the following provisions:
10.35 	(1) The waiver of sovereign immunity by the tribal entity
10.36 	and the limited waiver of sovereign immunity by the tribal
11.1 	governments consistent with paragraph (c).
11.2 	(2) In the construction of the gaming facility, and the
11.3 	subsequent repair and maintenance of the facility, the tribal
11.4 	entity shall make good faith efforts to contract with American
11.5 	Indian and minority-owned businesses.
11.6 	(3) In operating the gaming facility, the tribal entity
11.7 	shall make good faith efforts to ensure that American Indians
11.8 	and other minorities are employed in entry level, middle
11.9 	management, and upper management positions.
11.10 	(4) If a tribal government participating in the tribal
11.11 	entity opts out of the tribal entity as part of the renewal
11.12 	process it does not affect the ability of the tribal entity to
11.13 	renew the location contract with the participation of any
11.14 	remaining tribal governments.
11.15 	(g) In addition to the provisions required under paragraph
11.16 	(e), the location contract with the racetrack must contain a
11.17 	provision that provides that the location contract terminates on
11.18 	the first day of any calendar year following a calendar year
11.19 	during which the class A licensee has not conducted at least 50
11.20 	days of live racing at the licensee's racetrack.
11.21 	(h) No gaming facility may be located within a home rule
11.22 	charter or statutory city, or town, unless the governing body of
11.23 	the city or town adopts a resolution approving the site of the
11.24 	gaming facility within the city or town.
11.25 	(i) The tribal entity and the racetrack may establish
11.26 	reasonable standards for payment of promotional allowances to
11.27 	players and the proportional allocation of promotional
11.28 	allowances between revenue generated from gaming machines, other
11.29 	lottery games, and nonlottery casino games.  Upon approval of
11.30 	the standards for promotional allowances, the director shall
11.31 	reimburse the tribal entity for the cost of promotional
11.32 	allowances paid by the tribal entity.
11.33 	(j) The director may by administrative action cancel or
11.34 	suspend a location contract if the director reasonably
11.35 	determines that the tribal entity or the racetrack has
11.36 	materially breached any material provision of the location
12.1 	contract and has failed to cure that breach in a reasonable
12.2 	time, or if the tribal entity's or racetrack's gaming facility
12.3 	license has been suspended or revoked by the commissioner of
12.4 	public safety.
12.5 	A contract cancellation or suspension under this paragraph
12.6 	is a contested case under sections 14.57 to 14.69 and is in
12.7 	addition to any criminal penalties provided for a violation of
12.8 	law or rule.
12.9 	(k) The director may by administrative action impose a
12.10 	civil penalty, issue correction orders, or resolve in any other
12.11 	manner as determined appropriate by the director, if the
12.12 	director determines that the tribal entity or the racetrack has
12.13 	breached any term of the location contract.  The imposition of a
12.14 	civil penalty is a contested case under sections 14.57 to 14.69
12.15 	and is in addition to any criminal penalties provided for a
12.16 	violation of law or rule.
12.17 	(l) The rights and interests provided by a location
12.18 	contract are specific to the parties to the location contract
12.19 	and are not transferable without the written approval of the
12.20 	director.
12.21 	(m) Gaming machines may only be placed and other lottery
12.22 	games may only be conducted at a gaming facility that is owned
12.23 	or leased by the tribal entity or a racetrack.
12.24 	(n) A contract entered into under this subdivision is not
12.25 	subject to chapter 16C.
12.26 	(o) The amounts paid by the tribal entity and the racetrack
12.27 	to the commissioner of human services pursuant to a location
12.28 	contract under this section are annually appropriated to the
12.29 	commissioner of human services for problem and compulsive
12.30 	gambling treatment or programs, including programs that are
12.31 	designed to address compulsive gambling in American Indian and
12.32 	minority communities.
12.33 		Subd. 3.Operation. (a) All gaming machines that are
12.34 	placed at a gaming facility or other lottery games conducted at
12.35 	a gaming facility must be operated and controlled by the
12.36 	director.
13.1 	(b) Gaming machines must be owned or leased by the director.
13.2 	(c) Major maintenance of the gaming machines shall be
13.3 	controlled by the director or by a vendor that is under the
13.4 	control and direction of the director.
13.5 	(d) The director must establish and control a central
13.6 	communications system that monitors activities on each gaming
13.7 	machine.
13.8 	(e) Equipment used to conduct other lottery games at a
13.9 	gaming facility must be owned or leased by the director.
13.10 	(f) The director must approve the security plans and
13.11 	implementation of security measures associated with and relating
13.12 	to the operation of the gaming machines and the conducting of
13.13 	other lottery games at a gaming facility.
13.14 	(g) Advertising and promotional material produced by a
13.15 	gaming facility relating to gaming machines and the conduct of
13.16 	other lottery games at a gaming facility must be approved by the
13.17 	director in a timely manner.
13.18 	(h) The director may authorize the tribal entity and the
13.19 	racetrack to manage the routine day-to-day operation of the
13.20 	gaming machines and the conducting of other lottery games at a
13.21 	gaming facility, provided that the director shall maintain
13.22 	overall control of the operation of the gaming machines and the
13.23 	conducting of other lottery games at the gaming facility.
13.24 	(i) The costs associated with procuring and maintaining
13.25 	gaming machines and equipment involved in operating other
13.26 	lottery games, and costs associated with acquiring, maintaining,
13.27 	and operating the central system used to monitor the activity of
13.28 	gaming machines, shall be borne by the lottery.
13.29 	(j) All proceeds from the operation of gaming machines and
13.30 	conduct of other lottery games received by the tribal entity and
13.31 	the racetrack constitute a trust fund until transmitted to the
13.32 	director.
13.33 	(k) The director may require the tribal entity and the
13.34 	racetrack to deposit in a trust account or other agreed upon
13.35 	form of account, in a designated bank, all money received by the
13.36 	tribal entity and the racetrack from the operation of gaming
14.1 	machines and the conduct of other lottery games.
14.2 	(l) If the tribal entity or the racetrack fail to pay any
14.3 	money due the director within the time prescribed by the
14.4 	director, the tribal entity or the racetrack shall pay interest
14.5 	on the amount owed at the rate set for lottery retailers under
14.6 	Minnesota Rules, part 7856.7020.
14.7 	(m) The director may implement policies, procedures, and
14.8 	other controls that are determined to be necessary by the
14.9 	director for the operation of gaming machines and the conducting
14.10 	of other lottery games pursuant to this section.
14.11 		Subd. 4.Games. The director shall specify the games
14.12 	that may be played on a gaming machine and the manner in which
14.13 	other lottery games are conducted at a gaming facility as set
14.14 	forth under section 349A.04.
14.15 		Subd. 5.Specifications. Gaming machines must:
14.16 	(1) maintain on nonresettable meters a permanent record,
14.17 	capable of being printed out, of all transactions by the machine
14.18 	and all entries into the machine.  There must be a reasonable
14.19 	number of gaming machines placed at a gaming facility which
14.20 	afford players the option to receive winnings in the form of
14.21 	either coins or tokens;
14.22 	(2) be capable of being linked to a central communications
14.23 	system to provide auditing program information as required by
14.24 	the director; and 
14.25 	(3) there must be a reasonable number of gaming machines at
14.26 	the facility which are accessible to individuals with
14.27 	disabilities.  For the purposes of this subdivision,
14.28 	"individuals with disabilities" includes any person who has a
14.29 	physical or sensory impairment which materially limits one or
14.30 	more life activities.
14.31 		Subd. 6.Examination of machines. The director shall
14.32 	examine prototypes of gaming machines and require that the
14.33 	manufacturer of the machine pay the cost of the examination.
14.34 	The director may contract for the examination of gaming
14.35 	machines.  The director may require working models of a gaming
14.36 	machine transported to the locations the director designates for
15.1 	testing, examination, and analysis.  The manufacturer shall pay
15.2 	all costs of any testing, examination, analysis, and
15.3 	transportation of the machine model.
15.4 		Subd. 7.Prizes. A person who plays a gaming machine or
15.5 	plays any other lottery game at the gaming facility agrees to be
15.6 	bound by the rules and game procedures applicable to that
15.7 	particular game.  The player acknowledges that the determination
15.8 	of whether the player has won a prize is subject to the rules
15.9 	and game procedures adopted by the director, claim procedures
15.10 	established by the director for that game, and any confidential
15.11 	or public validation tests established by the director for that
15.12 	game.  A person under 18 years of age may not claim a prize from
15.13 	the operation of a gaming machine or the conducting of any other
15.14 	lottery game at the gaming facility.  A prize claimed from the
15.15 	play of a gaming machine game or the conduct of any other
15.16 	lottery game is not subject to section 349A.08, subdivision 8.
15.17 		Subd. 8.Prohibitions. A person under the age of 18
15.18 	years may not play a game on a gaming machine or participate in
15.19 	any other lottery game at the gaming facility.
15.20 		Subd. 9.Compulsive gambling notice. The tribal entity
15.21 	or racetrack shall prominently post, in areas of the gaming
15.22 	facility where gaming machines are located or where other
15.23 	lottery games are conducted, the toll-free telephone number
15.24 	established by the commissioner of human services in connection
15.25 	with the problem and compulsive gambling program.  The tribal
15.26 	entity or racetrack shall establish, with the approval of the
15.27 	director, a proactive plan relating to problem and compulsive
15.28 	gambling.
15.29 		Subd. 10.Local licenses; local fees. A political
15.30 	subdivision may not require a license to operate a gaming
15.31 	machine or conduct other lottery games or nonlottery casino
15.32 	games as defined under section 299L.094, restrict or regulate
15.33 	the placement of gaming machines or the conducting of other
15.34 	lottery or nonlottery casino games, or impose a fee or charge on
15.35 	the business of operating gaming machines or the conducting of
15.36 	other lottery or nonlottery casino games at the gaming facility.

16.1 	Sec. 15. LOTTERY BUDGET; GAMING FACILITY.
 16.2 	The director of the State Lottery shall submit a budget for
16.3 	the operation of gaming machines and for the conduct of other
16.4 	lottery games at a gaming facility as authorized under Minnesota
16.5 	Statutes, section 349A.17, to the commissioner of finance.
16.6 	Notwithstanding Minnesota Statutes, section 349A.10, subdivision
16.7 	6, the director of the State Lottery may expend amounts
16.8 	necessary to operate gaming at a gaming facility.  Amounts
16.9 	expended by the director of the State Lottery for the conducting
16.10 	of gaming at the gaming facility in fiscal years 2006 and 2007
16.11 	are not subject to the maximum amount set in law for the
16.12 	operation of the lottery.

16.13 	Sec. 16. EFFECTIVE DATE.
 16.14 	This article is effective the day following final enactment.

16.15 	ARTICLE 2
16.16 	DEPARTMENT OF PUBLIC SAFETY

16.17 	Section 1. [299L.09] GAMING FACILITY.
16.18 		Subdivision 1.Definitions. For the purposes of this
16.19 	section and sections 299L.09 to 299L.095, the following terms
16.20 	have the meanings given them.
16.21 	(a) "Direct financial interest" means ownership or control
16.22 	of at least five percent interest in the racetrack, tribal
16.23 	entity or management entity, the debt, or other financial
16.24 	interest in the tribal entity or management entity.
16.25 	(b) "Gaming facility" is as defined in section 349A.01.
16.26 	(c) "Lottery director" means the director of the Minnesota
16.27 	State Lottery under chapter 349A.
16.28 	(d) "Management entity" means the entity applying for or
16.29 	holding a management license under section 299L.092.
16.30 	(e) "Racetrack" is as defined in section 349A.17.
16.31 	(f) "Tribal entity" is as defined in section 349A.17.
16.32 		Subd. 2.License required. The tribal entity or
16.33 	racetrack that will own and operate, whether directly or through
16.34 	another tribal or management entity, a gaming facility under
16.35 	section 349A.17 must obtain a gaming facility license from the
16.36 	commissioner.
17.1 		Subd. 3.Application. An application for a license under
17.2 	this section must be on a form prescribed by the commissioner.
17.3 	The commissioner may issue a gaming facility license to the
17.4 	tribal entity or a racetrack that will operate the gaming
17.5 	facility.
17.6 		Subd. 4.License fee. Upon issuance of the license, each
17.7 	licensee must pay a onetime license fee of $100,000,000 to the
17.8 	commissioner.  Each licensee must pay an additional $50,000,000,
17.9 	payable to the commissioner, upon opening of a permanent gaming
17.10 	facility or within two years of issuance of the initial license,
17.11 	whichever occurs first.
17.12 		Subd. 5.License issuance. (a) The commissioner shall
17.13 	issue a license under this section unless information obtained
17.14 	from the comprehensive background check establishes that
17.15 	issuance of the license would be adverse to the public interest
17.16 	or to the effective regulation of gaming.  If a license
17.17 	application is denied, the applicant may reapply for a license.
17.18 	(b) The commissioner may only issue a gaming facility
17.19 	license to a tribal entity that, through a valid limited waiver
17.20 	of sovereign immunity, is subject to the jurisdiction of the
17.21 	Minnesota state courts and the administrative jurisdiction and
17.22 	regulation of the state.
17.23 	(c) A license issued under this section may not be
17.24 	transferred without the written approval of the commissioner.
17.25 		Subd. 6.Background investigation. Before issuing a
17.26 	gaming facility license, the commissioner shall conduct a
17.27 	comprehensive background and financial investigation of the
17.28 	applicant, including its officers, directors, managers,
17.29 	supervisory personnel, and persons with a direct financial
17.30 	interest in the applicant.  The commissioner may charge the
17.31 	applicant an investigation fee to cover the cost of the
17.32 	investigation.  The commissioner may require that fingerprints
17.33 	be taken from officers, directors, managers, supervisory
17.34 	personnel, and persons with a direct financial interest in the
17.35 	applicant.  The commissioner may forward the fingerprints to the
17.36 	Federal Bureau of Investigation for a national criminal history
18.1 	check.  As to the tribal entity applying for a license under
18.2 	this section, the provisions of this subdivision do not apply or
18.3 	include the officers and employees of tribal governments who are
18.4 	not officers or employees of the tribal entity.
18.5 		Subd. 7.License refusal; suspension and revocation. (a)
18.6 	The commissioner may refuse to issue, or may revoke or suspend,
18.7 	the gaming facility license if the applicant or licensee or its
18.8 	officers, directors, managers, supervisory personnel, and
18.9 	persons with a direct financial interest in the applicant or
18.10 	licensee has:
18.11 	(1) engaged in a material violation of law, order, or rule
18.12 	relating to gambling within any jurisdiction;
18.13 	(2) operated a gaming facility in violation of approved
18.14 	game procedures or an approved security plan, which in the
18.15 	commissioner's opinion adversely and materially affects the
18.16 	public interest of the state in the effective regulation and
18.17 	control of gaming;
18.18 	(3) made an intentional false statement in a license
18.19 	application related to gaming;
18.20 	(4) failed to perform material covenants or representations
18.21 	made in a license application; or 
18.22 	(5) failed to notify the commissioner of a material change
18.23 	in the information provided in the application.
18.24 	(b) The commissioner may not revoke or suspend a license
18.25 	under this subdivision unless the commissioner has given the
18.26 	licensee and, as to a tribal entity each participating tribal
18.27 	government, express written notice of the reason for the
18.28 	proposed revocation or suspension and has granted the licensee a
18.29 	reasonable amount of time to cure the violation giving rise to
18.30 	the proposed revocation or suspension, and, in the
18.31 	commissioner's reasonable judgment, the tribal entity has failed
18.32 	to do so.  The commissioner is not required to provide a
18.33 	reasonable time to cure the violation before a license
18.34 	suspension if, in the commissioner's reasonable judgment, the
18.35 	violation cannot be cured by the licensee before significant
18.36 	harm will result to the public health, safety, or welfare.  The
19.1 	ability to cure may include creation of a reorganized or
19.2 	reformed licensee, provided that the reorganized or reformed
19.3 	licensee is approved by the commissioner and the lottery
19.4 	director.
19.5 	(c) A license revocation or suspension under this
19.6 	subdivision is conducted as a contested case under sections
19.7 	14.57 to 14.69 of the Administrative Procedure Act, and is in
19.8 	addition to any other civil, administrative, or criminal
19.9 	penalties imposed for a violation of law or rule.
19.10 		Subd. 8.Other license actions. (a) The commissioner may
19.11 	not issue the gaming facility license under this section or may
19.12 	by administrative action impose a civil penalty upon the
19.13 	licensee, issue correction orders, or take other administrative
19.14 	action if the commissioner determines that the licensee, or
19.15 	officer, director, manager, supervisory personnel, or other
19.16 	person with a direct financial or management interest in the
19.17 	licensee:
19.18 	(1) has been convicted of a felony or of a crime in another
19.19 	jurisdiction, which would be a felony in Minnesota;
19.20 	(2) has been convicted of any crime related to gaming;
19.21 	(3) has been found by a court, the lottery director, the
19.22 	commissioner, or other state or governmental body to have
19.23 	engaged in fraud, misrepresentation, or deceit;
19.24 	(4) has provided false or misleading information to the
19.25 	commissioner;
19.26 	(5) has violated or failed to comply with this section or
19.27 	any provision of this chapter or chapter 349A;
19.28 	(6) is permanently or temporarily enjoined by any gambling
19.29 	regulatory agency from engaging in or continuing any conduct or
19.30 	practice involving any aspect of gambling;
19.31 	(7) has had a gambling-related license revoked or
19.32 	suspended, or has paid or been required to pay a monetary
19.33 	penalty of $10,000 or more by a gambling regulator in another
19.34 	state or jurisdiction;
19.35 	(8) has been the subject of any of the following actions by
19.36 	the commissioner:
20.1 	(i) has had a license under this chapter denied, suspended,
20.2 	or revoked;
20.3 	(ii) has been censured or reprimanded, or has paid or been
20.4 	required to pay a monetary penalty or fine; or 
20.5 	(iii) has been the subject of any other discipline by the
20.6 	commissioner; or 
20.7 	(9) based on past activities or criminal record, poses a
20.8 	threat to the public interest or to the effective regulation and
20.9 	control of gambling, or creates or enhances the dangers of
20.10 	unsuitable, unfair, or illegal practices, methods, and
20.11 	activities in the conduct of gambling or the management of the
20.12 	business and financial arrangements incidental to the conduct of
20.13 	gambling.
20.14 	(b) Any conduct in violation of this section, or failure by
20.15 	the licensee to take reasonable action to cure a violation of
20.16 	this section, may be considered by the commissioner in
20.17 	determining whether to order revocation or suspension of the
20.18 	gaming facility license.  Any proposed revocation or suspension
20.19 	is subject to the notice and process requirements of subdivision
20.20 	7, paragraph (b).
20.21 	(c) Administrative action, including, but not limited to,
20.22 	imposition of a civil penalty, corrective order, or other
20.23 	administrative action under this paragraph, is a contested case
20.24 	under sections 14.57 to 14.69 and is in addition to any other
20.25 	civil, administrative, or criminal penalties provided for a
20.26 	violation of law or rule.
20.27 		Subd. 9.Required notification. (a) The licensee has the
20.28 	obligation to immediately report to the commissioner any
20.29 	substantial change in its management or ownership.  Any
20.30 	individual who later becomes an officer, director, or other
20.31 	individual with a direct financial or management interest in the
20.32 	licensee must undergo a comprehensive background and financial
20.33 	investigation as set forth in subdivision 6.  Prior to assuming
20.34 	any duties or responsibilities for the licensee the individual
20.35 	must file the appropriate license application information with
20.36 	the commissioner.
21.1 	(b) Following issuance of a gaming facility license, the
21.2 	licensee must annually certify to the commissioner its
21.3 	compliance with this section.
21.4 		Subd. 10.License review. The gaming facility license
21.5 	must be reviewed by the commissioner every five years.  An
21.6 	application for review must be on a form prescribed by the
21.7 	commissioner.  The commissioner shall review the application and
21.8 	conduct the comprehensive background investigation pursuant to
21.9 	subdivision 6.
21.10 		Subd. 11.Audit; investigation. (a) The licensee shall
21.11 	have an annual certified audit conducted of the licensee's
21.12 	operation of the gaming facility in accordance with generally
21.13 	accepted accounting principles.  The licensee shall file a copy
21.14 	of each audit report with the commissioner.
21.15 	(b) The commissioner has the right to conduct additional
21.16 	reasonable audits or investigations relating to the operation of
21.17 	the gaming facility.  The commissioner shall have access to all
21.18 	information, records, and accounts pertaining to the operation
21.19 	of the gaming facility.  The commissioner may recover the
21.20 	reasonable costs of additional audits and investigations from
21.21 	the licensee.
21.22 		Subd. 12.Sale of intoxicating liquor. Notwithstanding
21.23 	any other law, local ordinance, or charter provision, the host
21.24 	community may issue to the licensee an on-sale license for the
21.25 	sale of intoxicating liquor at the gaming facility pursuant to
21.26 	chapter 340A.  The annual fee for the license issued pursuant to
21.27 	this subdivision shall be set by the host community at an amount
21.28 	comparable to the fee charged by municipalities in the
21.29 	surrounding area for a similar license.  Chapter 340A applies to
21.30 	the sale of intoxicating liquor at the gaming facility, except
21.31 	that the licensed premises need not be compact and contiguous if
21.32 	the licensed premises are limited to the interior and grounds of
21.33 	the gaming facility.
21.34 		Subd. 13.Detention of suspects. (a) The commissioner
21.35 	may designate specific employees of the department, the lottery,
21.36 	or the gaming facility as persons authorized to detain a person
22.1 	if they have probable cause to believe that the person detained
22.2 	has violated section 609.651 or 609.76 while at the gaming
22.3 	facility.
22.4 	(b) A person authorized to detain an individual under
22.5 	paragraph (a) is not criminally or civilly liable for any
22.6 	detention authorized by this subdivision if the person has a
22.7 	good faith belief that probable cause exists for the detention,
22.8 	and the detention was not conducted with unreasonable force or
22.9 	in bad faith.
22.10 	(c) A peace officer or person authorized by the
22.11 	commissioner under paragraph (a) may exclude a person from the
22.12 	gaming facility or remove that person from the gaming facility
22.13 	if the person is suspected to have violated section 609.651 or
22.14 	609.76 or possesses contraband as provided in section 609.762,
22.15 	subdivision 1.
22.16 	(d) The licensee may establish a self-exclusion program by
22.17 	which persons, at their request, may be excluded from the gaming
22.18 	facility.
22.19 		Subd. 14.Reimbursement of costs. The commissioner shall
22.20 	require that the licensee, on a quarterly basis, reimburse the
22.21 	commissioner for the commissioner's actual costs, including
22.22 	personnel costs of licensing, regulating, enforcement, and
22.23 	oversight of the gaming facility under this section and sections
22.24 	299L.091 to 299L.094.  Money received by the commissioner under
22.25 	this subdivision must be deposited in the state treasury and
22.26 	credited to the commissioner reimbursement account and is
22.27 	annually appropriated to the commissioner to pay the costs of
22.28 	regulating activities at the gaming facility.

22.29 	Sec. 2. [299L.091] GAMING MANAGEMENT.
22.30 		Subdivision 1.License required. The tribal entity or
22.31 	racetrack, or any entity formed by or engaged by the tribal
22.32 	entity or the racetrack to manage the operations of the gaming
22.33 	facility under section 349A.17, must obtain a gaming management
22.34 	license from the commissioner.
22.35 		Subd. 2.Application. An application for a license under
22.36 	this section must be on a form prescribed by the commissioner.
23.1 	The commissioner may issue a gaming management license to the
23.2 	management entity that will manage or operate the gaming
23.3 	facility or gaming operations for the tribal entity or the
23.4 	racetrack.
23.5 		Subd. 3.License issuance. (a) The commissioner shall
23.6 	issue a license under this section unless information obtained
23.7 	from the comprehensive background check establishes that
23.8 	issuance of the license would be adverse to the public interest
23.9 	or to the effective regulation of gaming.
23.10 	(b) The commissioner may only issue a gaming management
23.11 	license to an entity that is subject to the jurisdiction of the
23.12 	Minnesota state courts and the administrative jurisdiction and
23.13 	regulation of the state.
23.14 	(c) Any license issued under this section is
23.15 	nontransferable.
23.16 		Subd. 4.Background investigation. (a) Before issuing a
23.17 	gaming management license, the commissioner must conduct a
23.18 	comprehensive background and financial investigation of the
23.19 	applicant including its officers, directors, managers,
23.20 	supervisory personnel, and persons with a direct financial
23.21 	interest in the management entity, provided that if the
23.22 	management entity applying for the gaming management license and
23.23 	the gaming facility licensee are the same, the commissioner
23.24 	shall utilize the background investigation conducted as part of
23.25 	the application for a gaming facility license.  The commissioner
23.26 	may require that fingerprints be taken and the commissioner may
23.27 	forward the fingerprints to the Federal Bureau of Investigation
23.28 	for a national criminal history check on the officers,
23.29 	directors, managers, supervisory personnel, and persons with a
23.30 	direct financial interest in the management entity, not
23.31 	including the tribal governments that have an interest in the
23.32 	management entity.  The provisions of this paragraph do not
23.33 	apply or include the tribal government having an interest in the
23.34 	management entity.
23.35 	(b) The commissioner may charge an applicant for a gaming
23.36 	management license a reasonable fee to cover the costs of the
24.1 	investigation.  Money received by the commissioner under this
24.2 	subdivision must be deposited in the state treasury and credited
24.3 	to the commissioner reimbursement account and is annually
24.4 	appropriated to the commissioner to pay for costs incurred under
24.5 	this subdivision.
24.6 		Subd. 5.License actions. (a) The commissioner may not
24.7 	issue a license under this section, or may by administrative
24.8 	action revoke, suspend, or refuse to renew the gaming management
24.9 	license, impose a civil penalty upon the licensee, or issue
24.10 	correction orders, if the commissioner determines that the
24.11 	management entity, or officer, director, manager, supervisory
24.12 	personnel, other person with a direct financial interest in the
24.13 	management entity, not including the tribal government that have
24.14 	an interest in the management entity financial or management
24.15 	interest in the licensee:
24.16 	(1) has been convicted of a felony or of a crime in another
24.17 	jurisdiction, which would be a felony in Minnesota;
24.18 	(2) has been convicted of any crime related to gaming;
24.19 	(3) has been found by a court, the lottery director, the
24.20 	commissioner, or other state or governmental body to have
24.21 	engaged in fraud, misrepresentation, or deceit;
24.22 	(4) has provided false or misleading information to the
24.23 	commissioner;
24.24 	(5) has violated or failed to comply with this chapter or
24.25 	chapter 349A;
24.26 	(6) is permanently or temporarily enjoined by any gambling
24.27 	regulatory agency from engaging in or continuing any conduct or
24.28 	practice involving any aspect of gambling;
24.29 	(7) has had a gambling-related license revoked or
24.30 	suspended, or has paid or been required to pay a monetary
24.31 	penalty of $10,000 or more, by a gambling regulator in another
24.32 	state or jurisdiction;
24.33 	(8) has been the subject of any of the following actions by
24.34 	the commissioner:
24.35 	(i) has had a license under chapter 299L denied, suspended,
24.36 	or revoked;
25.1 	(ii) has been censured or reprimanded or has paid or been
25.2 	required to pay a monetary penalty or fine; or 
25.3 	(iii) has been the subject of any other discipline by the
25.4 	commissioner;
25.5 	(9) has engaged in conduct that is contrary to the public
25.6 	health, safety, or welfare, or to the integrity of gambling;
25.7 	(10) based on past activities or criminal record, poses a
25.8 	threat to the public interest or to the effective regulation and
25.9 	control of gambling, or creates or enhances the dangers of
25.10 	unsuitable, unfair, or illegal practices, methods, and
25.11 	activities in the conduct of gambling or the management of the
25.12 	business and financial arrangements incidental to the conduct of
25.13 	gambling;
25.14 	(11) has engaged in a material violation of law, order, or
25.15 	rule relating to gambling within any jurisdiction;
25.16 	(12) has operated gaming in violation of approved game
25.17 	procedures or an approved security plan, which in the
25.18 	commissioner's opinion adversely and materially affects the
25.19 	public interest of the state in the effective regulation and
25.20 	control of gaming;
25.21 	(13) has made an intentional false statement in a license
25.22 	application;
25.23 	(14) has failed to perform material covenants or
25.24 	representations made in a license application; or 
25.25 	(15) has failed to notify the commissioner of a material
25.26 	change in the information provided in a license application.
25.27 	(b) A license revocation, suspension, or imposition of a
25.28 	civil penalty under this paragraph is a contested case under
25.29 	sections 14.57 to 14.69 and is in addition to any criminal
25.30 	penalties provided for a violation of law or rule.
25.31 	(c) The commissioner shall provide notice of any license
25.32 	revocation, suspension, or imposition of a civil penalty to the
25.33 	tribal entity.
25.34 		Subd. 6.Required notification. (a) The gaming
25.35 	management licensee has the obligation to immediately report to
25.36 	the commissioner any change in its management or ownership.  Any
26.1 	individual who later becomes an officer, director, or other
26.2 	individual with a direct financial or management interest in the
26.3 	licensee must undergo a comprehensive background and financial
26.4 	investigation as set forth in subdivision 4.  Prior to assuming
26.5 	any duties or responsibilities for the licensee, the individual
26.6 	must file the appropriate license application information with
26.7 	the commissioner.
26.8 	(b) Following issuance of a gaming management license, the
26.9 	licensee must annually certify to the commissioner its
26.10 	compliance with this section.
26.11 		Subd. 7.License renewal. The gaming management license
26.12 	must be renewed every two years.  The commissioner must review
26.13 	an application for renewal of a gaming management license in the
26.14 	same manner as set forth in this section for issuance of a
26.15 	license, including the assessment of costs related to the
26.16 	background investigation.

26.17 	Sec. 3. [299L.092] EMPLOYEE LICENSES.
26.18 		Subdivision 1.Authority. The commissioner may issue
26.19 	employee licenses for persons employed at a gaming facility.
26.20 	All persons employed at a gaming facility must have the
26.21 	appropriate license issued by the commissioner.  The gaming
26.22 	facility licensee must ensure that an employee has a valid
26.23 	employee license before the employee begins work at the gaming
26.24 	facility.
26.25 		Subd. 2.Application information. An application for an
26.26 	employee license must be on a form prescribed by the
26.27 	commissioner and include an affidavit of qualification that the
26.28 	applicant:
26.29 	(1) does not have a felony conviction of record in a state
26.30 	or federal court and does not have a state or federal felony
26.31 	charge pending;
26.32 	(2) is not and never has been connected with or engaged in
26.33 	an illegal business;
26.34 	(3) has never been found guilty of fraud or
26.35 	misrepresentation in connection with gambling; and 
26.36 	(4) has never been found guilty of a violation of law or
27.1 	rule relating to gambling within any jurisdiction.
27.2 		Subd. 3.Background investigations. The commissioner
27.3 	shall investigate each applicant for an employee license to the
27.4 	extent the commissioner deems necessary.  The commissioner must
27.5 	require the applicant to be fingerprinted or to furnish the
27.6 	applicant's fingerprints.  The commissioner may require the
27.7 	tribal entity or racetrack to pay the costs of processing
27.8 	employee licenses, renewing employee licenses, and conducting
27.9 	background investigations on the employee.  Money received by
27.10 	the commissioner under this subdivision must be deposited in the
27.11 	state treasury and credited to the commissioner reimbursement
27.12 	account and are annually appropriated to the commissioner to pay
27.13 	for costs incurred under this subdivision.
27.14 		Subd. 4.License issuance and renewal. If the
27.15 	commissioner determines that the applicant is qualified for the
27.16 	occupation for which licensing is sought and will not adversely
27.17 	affect the public health, safety, and welfare or the integrity
27.18 	of gambling in Minnesota, the commissioner may issue an employee
27.19 	license to the applicant.  If the commissioner makes a similar
27.20 	finding for a renewal of an employee license, the commissioner
27.21 	may renew the license.  Employee licenses are effective for one
27.22 	year.
27.23 		Subd. 5.Revocation and suspension. (a) The commissioner
27.24 	may revoke an employee license for a violation of law or rule
27.25 	which in the commissioner's opinion adversely affects the
27.26 	integrity of gambling in Minnesota, or for an intentional false
27.27 	statement made in a license application.  The commissioner may
27.28 	suspend an employee license for up to one year or refuse to
27.29 	renew the license or impose a civil penalty for a violation of
27.30 	law, order, or rule.  A license revocation or suspension is a
27.31 	contested case under sections 14.57 to 14.69 of the
27.32 	Administrative Procedure Act and is in addition to criminal
27.33 	penalties imposed for a violation of law or rule.
27.34 	(b) The commissioner may summarily suspend an employee
27.35 	license prior to a contested case hearing where it is necessary
27.36 	to ensure the integrity of gambling.  A contested case hearing
28.1 	must be held within 20 days of the summary suspension and the
28.2 	administrative law judge's report must be issued within 20 days
28.3 	from the close of the hearing record.  In all cases involving
28.4 	summary suspension, the commissioner must issue its final
28.5 	decision within 30 days from receipt of the report of the
28.6 	administrative law judge and subsequent exceptions and argument
28.7 	under section 14.61.

28.8 	Sec. 4. [299L.093] VENDOR LICENSES.
28.9 		Subdivision 1.Issuance. The commissioner may issue a
28.10 	vendor license for any person or entity that sells or
28.11 	distributes products or provides services at a gaming facility.
28.12 	No person may sell or distribute products or provide a service
28.13 	at a gaming facility unless the person has obtained a license
28.14 	from the commissioner.  All employees of the vendor whose work
28.15 	requires attendance at a gaming facility must obtain an employee
28.16 	license under section 299L.092.
28.17 		Subd. 2.Application information. An application for a
28.18 	vendor license must be on a form prescribed by the commissioner
28.19 	and include an affidavit of qualification that the applicant,
28.20 	and any officer, director, or person with direct financial
28.21 	interest in the applicant:
28.22 	(1) does not have a felony conviction of record in a state
28.23 	or federal court and does not have a state or federal felony
28.24 	charge pending;
28.25 	(2) is not and never has been connected with or engaged in
28.26 	an illegal business;
28.27 	(3) has never been found guilty of fraud or
28.28 	misrepresentation in connection with gambling; and 
28.29 	(4) has never been found guilty of a violation of law or
28.30 	rule relating to gambling within any jurisdiction.
28.31 		Subd. 3.Background investigations. The commissioner
28.32 	shall investigate each applicant for a vendor license to the
28.33 	extent the commissioner deems necessary.  The commissioner must
28.34 	require the applicant be fingerprinted or furnish the
28.35 	applicant's fingerprints.  The commissioner may require the
28.36 	vendor to pay the costs of processing employee licenses,
29.1 	renewing vendor licenses, and conducting background
29.2 	investigations on the vendor.  Money received by the
29.3 	commissioner under this subdivision must be deposited in the
29.4 	state treasury and credited to the commissioner reimbursement
29.5 	account, and are annually appropriated to the commissioner to
29.6 	pay for costs incurred under this subdivision.
29.7 		Subd. 4.License issuance and renewal. If the
29.8 	commissioner determines that the applicant is qualified and the
29.9 	issuance of the license will not adversely affect the public
29.10 	health, safety, and welfare or the integrity of gambling in
29.11 	Minnesota, the commissioner may issue a vendor license to the
29.12 	applicant.  If the commissioner makes a similar finding for a
29.13 	renewal of a vendor license, the commissioner may renew the
29.14 	license.  Vendor licenses are effective for one year.
29.15 		Subd. 5.Revocation and suspension. (a) The commissioner
29.16 	may revoke a vendor license for a violation of law or rule that,
29.17 	in the commissioner's opinion, adversely affects the integrity
29.18 	of gambling in Minnesota, or for an intentional false statement
29.19 	made in a license application.  The commissioner may suspend a
29.20 	vendor license for up to one year or refuse to renew the license
29.21 	or impose a civil penalty for a violation of law, order, or
29.22 	rule.  A license revocation or suspension is a contested case
29.23 	under sections 14.57 to 14.69 of the Administrative Procedure
29.24 	Act and is in addition to criminal penalties imposed for a
29.25 	violation of law or rule.
29.26 	(b) The commissioner may summarily suspend a vendor license
29.27 	for not more than 90 days prior to a contested case hearing
29.28 	where it is necessary to ensure the integrity of gambling.  A
29.29 	contested case hearing must be held within 20 days of the
29.30 	summary suspension and the administrative law judge's report
29.31 	must be issued within 20 days from the close of the hearing
29.32 	record.  In all cases involving summary suspension, the
29.33 	commissioner must issue its final decision within 30 days from
29.34 	receipt of the report of the administrative law judge and
29.35 	subsequent exceptions and argument under section 14.61.

29.36 	Sec. 5. [299L.094] NONLOTTERY CASINO GAMES.
30.1 		Subdivision 1.Definitions. (a) For the purposes of this
30.2 	section, the following terms have the meanings given them.
30.3 	(b) "Nonlottery casino games" means any game authorized by
30.4 	the commissioner to be conducted by a gaming facility licensee
30.5 	at the gaming facility that is not a gaming machine or other
30.6 	lottery game as defined by section 349A.01.
30.7 	(c) "Nonlottery casino games' adjusted gross revenue" means
30.8 	the sum of all money received from the operation of nonlottery
30.9 	casino games, less the amounts paid out to players in prizes or
30.10 	winnings and promotional allowances approved by the lottery
30.11 	director under section 349A.17 in the nonlottery casino games.
30.12 		Subd. 2.Operation. Nonlottery casino games may be
30.13 	operated by the gaming facility licensee in conformance with a
30.14 	plan of operation approved by the commissioner.  The plan of
30.15 	operation must include, at a minimum:
30.16 	(1) specifying and defining all nonlottery games to be
30.17 	played, including all governing aspects of each nonlottery
30.18 	casino game;
30.19 	(2) arrangements to ensure the security of nonlottery
30.20 	casino gaming;
30.21 	(3) internal control systems for play of nonlottery casino
30.22 	games; and 
30.23 	(4) a plan for the training of nonlottery casino games
30.24 	personnel in identification of problem gamblers and appropriate
30.25 	action to prevent or control problem gambling.
30.26 		Subd. 3.Plan amendment. The plan of operation may be
30.27 	amended only with the approval of the commissioner.
30.28 		Subd. 4.Actions. The commissioner may revoke, suspend,
30.29 	refuse to renew, or impose a civil penalty upon the gaming
30.30 	facility or the gaming management licensee for violation of the
30.31 	plan of operation.  An action under this subdivision shall be
30.32 	conducted as a contested case under sections 14.57 to 14.69 of
30.33 	the Administrative Procedures Act and is in addition to criminal
30.34 	penalties imposed for violation of the plan of operation.
30.35 		Subd. 5.Prizes. A person who plays a nonlottery casino
30.36 	game at a gaming facility agrees to be bound by the rules and
31.1 	game procedures applicable to that particular game.  The player
31.2 	acknowledges that the determination of whether the player has
31.3 	won a prize is subject to the rules and game procedures adopted
31.4 	by the plan of operation, claim procedures established by the
31.5 	plan of operation for that game, and any confidential or public
31.6 	validation tests established by the plan of operation for that
31.7 	game.  A person under 18 years of age may not claim a prize from
31.8 	a nonlottery casino game at a gaming facility.

31.9 	Sec. 6. [299L.095] EMPLOYMENT RESTRICTIONS; CIVIL
31.10 	PENALTY.
31.11 	(a) The lottery director, the commissioner, or any manager,
31.12 	director, or supervisor employed by the lottery or the
31.13 	Department of Public Safety whose job responsibilities include
31.14 	the oversight, audit, investigation, or regulation of gaming at
31.15 	a gaming facility licensed by the commissioner must not, while
31.16 	employed with or within one year after leaving employment,
31.17 	receive compensation directly or indirectly from, or enter into
31.18 	a contractual relationship with the tribal entity, racetrack, or
31.19 	any management entity licensed by the commissioner pursuant to
31.20 	section 299L.09 or 299L.091.
31.21 	(b) The tribal entity, racetrack, or management entity
31.22 	licensed by the commissioner must not negotiate with or offer to
31.23 	employ or compensate the lottery director; commissioner; or any
31.24 	manager, director, or supervisor employed by the lottery or the
31.25 	Department of Public Safety whose job responsibilities include
31.26 	the oversight, audit, investigation, or regulation of gaming at
31.27 	a gaming facility licensed by the commissioner pursuant to
31.28 	section 299L.09 or 299L.091 while the person is employed by the
31.29 	lottery or the Department of Public Safety or within one year
31.30 	after the person's employment has ended.
31.31 	(c) A state employee who violates this section is subject
31.32 	to a civil penalty not to exceed $10,000 for each violation.
31.33 	The attorney general may bring an action in district court to
31.34 	pursue a violation of this section.
31.35 	(d) The commissioner may take administrative action in
31.36 	relation to the gaming facility license or management license
32.1 	for a violation of this section by a tribal entity, racetrack,
32.2 	or management entity.

32.3 	Sec. 7. EFFECTIVE DATE.
 32.4 	This article is effective the day following final enactment.

32.5 	ARTICLE 3
32.6 	RACING COMMISSION

32.7 	Section 1. Minnesota Statutes 2004, section 240.13, is
32.8 	amended by adding a subdivision to read:
32.9 		Subd. 5a.Purses; gaming machines. From the fee received
32.10 	by a licensee pursuant to a location contract entered into under
32.11 	section 349A.17, the licensee must set aside an amount equal to
32.12 	not less than 7.25 percent of the adjusted gross gaming machine
32.13 	revenues as defined under chapter 349A, for purses for live
32.14 	horse races conducted by the licensee.  Purse payments made
32.15 	pursuant to this subdivision are in addition to purse payments
32.16 	otherwise established by law or contract.  Twenty percent of the
32.17 	money set aside for purses pursuant to this subdivision shall be
32.18 	transferred to the commission and used for the purposes in
32.19 	section 240.18, subdivisions 2, paragraph (d), and 3, paragraph
32.20 	(b), subject to the proportionality requirement in section
32.21 	240.18, subdivision 1.  The licensee and the horseperson's
32.22 	organization representing the majority of horsepersons who have
32.23 	raced at the racetrack during the preceding 12 months may
32.24 	negotiate percentages different from those stated in this
32.25 	section if the agreement is in writing and filed with the Racing
32.26 	Commission.

32.27 	Sec. 2. Minnesota Statutes 2004, section 240.135, is
32.28 	amended to read:
32.29 	240.135 CARD CLUB REVENUE.
32.30 	(a) From the amounts received from charges authorized under
32.31 	section 240.30, subdivision 4, or from revenue received from the
32.32 	conducting of nonlottery casino games under section 299L.04,the
32.33 	licensee shall set aside the amounts specified in this section
32.34 	to be used for purse payments. These amounts are in addition to
32.35 	the breeders fund and purse requirements set forth elsewhere in
32.36 	this chapter.
33.1 	(1) For amounts between zero and $6,000,000, the licensee
33.2 	shall set aside ten percent to be used as purses.
33.3 	(2) For amounts in excess of $6,000,000, the licensee shall
33.4 	set aside 14 percent to be used as purses.
33.5 	(b) From all amounts set aside under paragraph (a), the
33.6 	licensee shall set aside ten percent to be deposited in the
33.7 	breeders fund.  The licensee and the horseperson's organization
33.8 	representing the majority of horsepersons who have raced at the
33.9 	racetrack during the preceding 12 months may negotiate
33.10 	percentages different from those stated in this section if the
33.11 	agreement is in writing and filed with the Racing Commission.
33.12 	(c) It is the intent of the legislature that the proceeds
33.13 	of the card playing activities authorized by this chapter be
33.14 	used to improve the horse racing industry by improving purses.
33.15 	The commission shall annually review the financial details of
33.16 	card playing activities and determine if the present use of card
33.17 	playing proceeds is consistent with the policy established by
33.18 	this paragraph.  If the commission determines that the use of
33.19 	the proceeds does not comply with the policy set forth herein,
33.20 	then the commission shall direct the parties to make the changes
33.21 	necessary to ensure compliance.  If these changes require
33.22 	legislation, the commission shall make the appropriate
33.23 	recommendations to the legislature.

33.24 	Sec. 3. Minnesota Statutes 2004, section 240.30,
33.25 	subdivision 1, is amended to read:
33.26 		Subdivision 1.Card club operation. If a class A
33.27 	licensee is not operating a gaming facility under chapter 299L
33.28 	or 349A,a class B licensee conducting pari-mutuel betting on
33.29 	horse racing at a class A racetrack may operate a card club at
33.30 	the racetrack and offer card playing services to patrons only if
33.31 	the commission has authorized the licensee to operate a card
33.32 	club operation under section 240.07, subdivision 3, paragraph
33.33 	(b), and the commission has approved the licensee's plan of
33.34 	operation under subdivision 6.  The commission may withdraw its
33.35 	authorization for operation of a card club at any time for a
33.36 	violation of a law or rule governing card club operation.

34.1 	ARTICLE 4
34.2 	GAMING TRANSACTION FEE

34.3 	Section 1. [16A.901] GAMING FACILITY.
34.4 		Subdivision 1.State lottery. The State Lottery must, on
34.5 	or before the 20th day of each month, transmit to the
34.6 	commissioner, an amount equal to the adjusted gross gaming
34.7 	machine revenue and other lottery games' adjusted gross revenue,
34.8 	as defined in section 349A.01, for the previous month multiplied
34.9 	by 26 percent.
34.10 		Subd. 2.Gaming facility licensee. A gaming facility
34.11 	licensee authorized to conduct nonlottery casino games at a
34.12 	gaming facility under section 299L.094, shall pay a gaming
34.13 	transaction fee at the rate of 14 percent of nonlottery casino
34.14 	games' adjusted gross revenue, as defined in section 299L.094.
34.15 	The gaming facility licensee authorized to conduct nonlottery
34.16 	casino games at the gaming facility must make the payments due
34.17 	under this subdivision to the commissioner on or before the 20th
34.18 	day of each month for the adjusted gross revenue received for
34.19 	the previous month.
34.20 		Subd. 3.Deposit of receipts. The commissioner shall
34.21 	deposit the money transmitted under this section in the state
34.22 	treasury to be credited as provided in section 2.

34.23 	Sec. 2. [16A.902] GAMING FACILITY PROCEEDS FUND.
34.24 	A gaming facility proceeds fund is established in the state
34.25 	treasury, consisting of money deposited in the fund under
34.26 	section 16A.901, and any other money credited to the fund by law.
34.27 	Money in the fund is appropriated as follows:
34.28 	(1) ten percent of the receipts is annually appropriated to
34.29 	the community assets account; and 
34.30 	(2) the remaining 90 percent of the receipts shall be
34.31 	transferred to the general fund.

34.32 	Sec. 3. [16A.903] COMMUNITY ASSETS ACCOUNT.
34.33 	A community assets account is established in the state
34.34 	treasury, consisting of money deposited in the account under
34.35 	section 16A.902, and interest earned thereon.  Money in the
34.36 	account may be spent, as appropriated by law, to help finance
35.1 	capital projects that provide for facilities which provide a
35.2 	public benefit to the state and local communities.  Projects
35.3 	that may be financed through an appropriation from this account
35.4 	include, but are not limited to, the following:  stadiums and
35.5 	other athletic facilities for professional, college, and amateur
35.6 	sports; museums, theaters, and other facilities for the arts;
35.7 	recreational facilities; planetariums; and zoos.

35.8 	Sec. 4. EFFECTIVE DATE.
 35.9 	This article is effective the day following final enactment.

35.10 	ARTICLE 5
35.11 	MISCELLANEOUS PROVISIONS

35.12 	Section 1. Minnesota Statutes 2004, section 299L.07,
35.13 	subdivision 2, is amended to read:
35.14 		Subd. 2.Exclusions.  Notwithstanding subdivision 1, a
35.15 	gambling device:
35.16 	(1) may be sold by a person who is not licensed under this
35.17 	section, if the person (i) is not engaged in the trade or
35.18 	business of selling gambling devices, and (ii) does not sell
35.19 	more than one gambling device in any calendar year;
35.20 	(2) may be sold by the governing body of a federally
35.21 	recognized Indian tribe described in subdivision 2a, paragraph
35.22 	(b), clause (1), which is not licensed under this section, if
35.23 	(i) the gambling device was operated by the Indian tribe, (ii)
35.24 	the sale is to a distributor licensed under this section, and
35.25 	(iii) the licensed distributor notifies the commissioner of the
35.26 	purchase, in the same manner as is required when the licensed
35.27 	distributor ships a gambling device into Minnesota;
35.28 	(3) may be possessed by a person not licensed under this
35.29 	section if the person holds a permit issued under section
35.30 	299L.08; and 
35.31 	(4) may be possessed by a state agency, with the written
35.32 	authorization of the director, for display or evaluation
35.33 	purposes only and not for the conduct of gambling; and 
35.34 	(5) may be possessed by the State Lottery as authorized
35.35 	under chapter 349A.

35.36 	Sec. 2. Minnesota Statutes 2004, section 299L.07,
36.1 	subdivision 2a, is amended to read:
36.2 		Subd. 2a.Restrictions.  (a) A manufacturer licensed
36.3 	under this section may sell, offer to sell, lease, or rent, in
36.4 	whole or in part, a gambling device only to a distributor
36.5 	licensed under this section or to the State Lottery as
36.6 	authorized under chapter 349A.
36.7 	(b) A distributor licensed under this section may sell,
36.8 	offer to sell, market, rent, lease, or otherwise provide, in
36.9 	whole or in part, a gambling device only to:
36.10 	(1) the governing body of a federally recognized Indian
36.11 	tribe that is authorized to operate the gambling device under a
36.12 	tribal state compact under the Indian Gaming Regulatory Act,
36.13 	Public Law 100-497, and future amendments to it;
36.14 	(2) a person for use in the person's dwelling for display
36.15 	or amusement purposes in a manner that does not afford players
36.16 	an opportunity to obtain anything of value;
36.17 	(3) another distributor licensed under this section; or 
36.18 	(4) a person in another state who is authorized under the
36.19 	laws of that state to possess the gambling device; or 
36.20 	(5) the State Lottery as authorized under chapter 349A.

36.21 	Sec. 3. Minnesota Statutes 2004, section 340A.410,
36.22 	subdivision 5, is amended to read:
36.23 		Subd. 5.Gambling prohibited.  (a) Except as otherwise
36.24 	provided in this subdivision, no retail establishment licensed
36.25 	to sell alcoholic beverages may keep, possess, or operate, or
36.26 	permit the keeping, possession, or operation on the licensed
36.27 	premises of dice or any gambling device as defined in section
36.28 	349.30, or permit gambling therein.
36.29 	(b) Gambling equipment may be kept or operated and raffles
36.30 	conducted on licensed premises and adjoining rooms when the use
36.31 	of the gambling equipment is authorized by (1) chapter 349, (2)
36.32 	a tribal ordinance in conformity with the Indian Gaming
36.33 	Regulatory Act, Public Law 100-497, or (3) a tribal-state
36.34 	compact authorized under section 3.9221.
36.35 	(c) Lottery tickets may be purchased and sold within the
36.36 	licensed premises as authorized by the director of the lottery
37.1 	under chapter 349A.
37.2 	(d) Dice may be kept and used on licensed premises and
37.3 	adjoining rooms as authorized by section 609.761, subdivision 4.
37.4 	(e) Gambling devices may be operated and gambling permitted
37.5 	at a gaming facility as authorized by chapters 299L and 349A.

37.6 	Sec. 4. Minnesota Statutes 2004, section 541.20, is
37.7 	amended to read:
37.8 	541.20 RECOVERY OF MONEY LOST.
37.9 	Every person who, by playing at cards, dice, or other game,
37.10 	or by betting on the hands or sides of such as are gambling,
37.11 	shall lose to any person so playing or betting any sum of money
37.12 	or any goods, and pays or delivers the same, or any part
37.13 	thereof, to the winner, may sue for and recover such money by a
37.14 	civil action, before any court of competent jurisdiction.  For
37.15 	purposes of this section, gambling shall not include pari-mutuel
37.16 	wagering conducted under a license issued pursuant to chapter
37.17 	240, purchase or sale of tickets in the state lottery, purchase
37.18 	of gaming machine plays as authorized under chapter 349A,
37.19 	conduct of any lottery or nonlottery casino games at a gaming
37.20 	facility as authorized under chapters 299L and 349A,or gambling
37.21 	authorized under chapters 349 and 349A.

37.22 	Sec. 5. Minnesota Statutes 2004, section 541.21, is
37.23 	amended to read:
37.24 	541.21 COMMITMENTS FOR GAMBLING DEBT VOID.
37.25 	Every note, bill, bond, mortgage, or other security or
37.26 	conveyance in which the whole or any part of the consideration
37.27 	shall be for any money or goods won by gambling or playing at
37.28 	cards, dice, or any other game whatever, or by betting on the
37.29 	sides or hands of any person gambling, or for reimbursing or
37.30 	repaying any money knowingly lent or advanced at the time and
37.31 	place of such gambling or betting, or lent and advanced for any
37.32 	gambling or betting to any persons so gambling or betting, shall
37.33 	be void and of no effect as between the parties to the same, and
37.34 	as to all persons except such as hold or claim under them in
37.35 	good faith, without notice of the illegality of the
37.36 	consideration of such contract or conveyance.  The provisions of
38.1 	this section shall not apply to:  (1) pari-mutuel wagering
38.2 	conducted under a license issued pursuant to chapter 240; (2)
38.3 	purchase of tickets in the state lottery or other wagering
38.4 	authorized under chapter 299L or 349A; (3) gaming activities
38.5 	conducted pursuant to the Indian Gaming Regulatory Act, 25
38.6 	U.S.C. 2701 et seq.; or (4) lawful gambling activities permitted
38.7 	under chapter 349.

38.8 	Sec. 6. Minnesota Statutes 2004, section 609.75,
38.9 	subdivision 3, is amended to read:
38.10 		Subd. 3.What are not bets.  The following are not bets:
38.11 	(1) A contract to insure, indemnify, guarantee or otherwise
38.12 	compensate another for a harm or loss sustained, even though the
38.13 	loss depends upon chance.
38.14 	(2) A contract for the purchase or sale at a future date of
38.15 	securities or other commodities.
38.16 	(3) Offers of purses, prizes or premiums to the actual
38.17 	contestants in any bona fide contest for the determination of
38.18 	skill, speed, strength, endurance, or quality or to the bona
38.19 	fide owners of animals or other property entered in such a
38.20 	contest.
38.21 	(4) The game of bingo when conducted in compliance with
38.22 	sections 349.11 to 349.23.
38.23 	(5) A private social bet not part of or incidental to
38.24 	organized, commercialized, or systematic gambling.
38.25 	(6) The operation of equipment or the conduct of a raffle
38.26 	under sections 349.11 to 349.22, by an organization licensed by
38.27 	the Gambling Control Board or an organization exempt from
38.28 	licensing under section 349.166.
38.29 	(7) Pari-mutuel betting on horse racing when the betting is
38.30 	conducted under chapter 240.
38.31 	(8) The purchase and sale of state lottery tickets under
38.32 	chapter 349A.
38.33 	(9) Plays on a gaming machine, or purchase or participating
38.34 	in any lottery or nonlottery casino game at a gaming facility
38.35 	authorized under chapter 299L or 349A.

38.36 	Sec. 7. Minnesota Statutes 2004, section 609.761, is
39.1 	amended by adding a subdivision to read:
39.2 		Subd. 6.Gaming facility. Sections 609.755 and 609.76 do
39.3 	not prohibit the manufacture, possession, sale, or operation of
39.4 	a gaming machine at a gaming facility under chapter 349A, or the
39.5 	conduct of any other lottery or nonlottery casino game at a
39.6 	gaming facility under chapters 299L and 349A.

39.7 	Sec. 8. SEVERABILITY; SAVINGS.
 39.8 	If any part of this act is found to be invalid because it
39.9 	is in conflict with a provision of the Constitution of the State
39.10 	of Minnesota or the Constitution of the United States, or for
39.11 	any other reason, all other provisions of this act shall remain
39.12 	valid and any rights, remedies, and privileges that have been
39.13 	otherwise accrued by this act, shall remain in effect and may be
39.14 	proceeded with and concluded under the provisions of this act.

39.15 	Sec. 9. EFFECTIVE DATE.
 39.16 	This article is effective the day following final enactment.

39.17 	ARTICLE 6
39.18 	APPROPRIATIONS

39.19 	Section 1. APPROPRIATIONS.
 39.20 	Revenue raised by this act is appropriated from the general
39.21 	fund in fiscal years 2006 and 2007 as specified in this article.

39.22 	Sec. 2. EDUCATION.
 39.23 	$134,000,000 is appropriated to offset the reduction in
39.24 	spending in H.F. No. 872, article 5, that would become effective
39.25 	if H.F. No. 1664 is not passed by the house of representatives.
39.26 	Reductions in appropriations under H.F. No. 872, article 5,
39.27 	section 13, are negated by the appropriation in this section.

39.28 	Sec. 3. HIGHER EDUCATION.
 39.29 	$25,450,000 is appropriated to the agencies and for the
39.30 	purposes indicated in H.F. No. 1385, article 5.  This
39.31 	appropriation replaces the appropriations in H.F. No. 1385,
39.32 	article 5, that otherwise would only become effective if H.F. No.
39.33 	1664 is passed by the house of representatives.

39.34 	Sec. 4. HEALTH.
 39.35 	$20,000,000 is appropriated to the agencies and for the
39.36 	purposes indicated in H.F. No. 1422, article 11.  This
40.1 	appropriation replaces the appropriations in of H.F. No. 1422,
40.2 	article 11, that otherwise would only become effective if H.F.
40.3 	No. 1664 is passed by the house of representatives.

40.4 	Sec. 5. JOBS AND ECONOMIC OPPORTUNITY.
 40.5 	$15,000,000 is appropriated to the agencies and for the
40.6 	purposes indicated in H.F. No. 1976, article 7.  This
40.7 	appropriation replaces the appropriations in of H.F. No. 1976,
40.8 	article 7, that otherwise would only become effective if H.F. No.
40.9 	1664 is passed by the house of representatives.

40.10 	Sec. 6. ENVIRONMENT AND NATURAL RESOURCES.
 40.11 	$11,400,000 is appropriated to the agencies and for the
40.12 	purposes that would otherwise be reduced in H.F. No. 902,
40.13 	article 2, if H.F. No. 1664 is not passed by the house of
40.14 	representatives.  Reductions in appropriations under H.F. No.
40.15 	902, article 2, are negated by the appropriation in this section.

40.16 	Sec. 7. PUBLIC SAFETY.
 40.17 	$4,500,000 is appropriated to the agencies and for the
40.18 	purposes indicated in H.F. No. 1, article 19.  This
40.19 	appropriation replaces the appropriation in H.F. No. 1, article
40.20 	19, that otherwise would only become effective if H.F. No. 1664
40.21 	is passed by the house of representatives.