1.1                          A bill for an act
  1.2             relating to gambling; stating certain findings and 
  1.3             legislative intent; directing the attorney general to 
  1.4             bring a legal action under certain circumstances; 
  1.5             eliminating the basis in state law for tribal-state 
  1.6             compacts governing video games of chance; providing 
  1.7             requirement for certain new tribal-state compacts; 
  1.8             directing the governor to seek renegotiation of 
  1.9             compacts; amending Minnesota Statutes 2002, sections 
  1.10            3.9221, subdivision 4; 299L.07, subdivisions 2, 2a; 
  1.11            repealing Minnesota Statutes 2002, section 349.61, 
  1.12            subdivision 2; Laws 1989, chapter 149, section 6; Laws 
  1.13            1989, chapter 334, article 6, section 14. 
  1.14  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.15                             ARTICLE 1 
  1.16                  LEGISLATIVE FINDINGS AND INTENT 
  1.17     Section 1.  [LEGISLATIVE FINDINGS; INTENT.] 
  1.18     Subdivision 1.  [LEGISLATIVE FINDINGS.] The legislature 
  1.19  finds that: 
  1.20     (1) the extent of gaming on Indian land in Minnesota has 
  1.21  resulted in substantial direct and indirect costs to state and 
  1.22  local government in Minnesota, including greatly increased 
  1.23  transportation, law enforcement, and social costs not foreseen 
  1.24  at the time that the current tribal-state gaming compacts were 
  1.25  negotiated; 
  1.26     (2) the volume of wagering on Indian land has far exceeded 
  1.27  what was anticipated at the time that current tribal-state 
  1.28  gaming compacts were negotiated; 
  1.29     (3) the benefits of Indian gaming to tribes and individual 
  2.1   members of tribes vary widely among tribes; and 
  2.2      (4) video games of chance are a uniquely addictive form of 
  2.3   gambling and are responsible for a disproportionate share of the 
  2.4   social and economic cost associated with gambling, and that 
  2.5   therefore their use should be prohibited in Minnesota for all 
  2.6   purposes as against public policy and as a matter of criminal 
  2.7   law in the state.  
  2.8      Subd. 2.  [LEGISLATIVE INTENT.] It is the intent of the 
  2.9   legislature that: 
  2.10     (1) the provisions of the Indian Gaming Regulatory Act, 
  2.11  Public Law 100-497, require that a compact between a state and 
  2.12  an Indian tribe that allows a form of class III gaming on Indian 
  2.13  land authorize only a form of class III gaming that a state 
  2.14  permits for any purpose by a person, organization, or entity; 
  2.15     (2) the provisions of article 3 constitute the elimination 
  2.16  of any basis in state law for tribal-state compacts that 
  2.17  authorize the possession and operation of video games of chance 
  2.18  on Indian land in Minnesota; and 
  2.19     (3) therefore on and after January 1, 2006, any 
  2.20  tribal-state compact authorizing operation of video gaming 
  2.21  machines is of no force and effect and is not binding on the 
  2.22  state.  
  2.23     Sec. 2.  [ATTORNEY GENERAL ACTION.] 
  2.24     Subdivision 1.  [ATTORNEY GENERAL TO BRING ACTION.] The 
  2.25  attorney general shall, beginning on the effective date of this 
  2.26  section, take all necessary steps to bring an action in the name 
  2.27  of the state in the appropriate federal court to establish that 
  2.28  this act eliminates the legal basis of any compact between 
  2.29  Minnesota and a federally recognized Indian tribe that 
  2.30  authorizes the possession and operation of video gaming machines 
  2.31  on Indian land within the state under the federal Indian Gaming 
  2.32  Regulatory Act, Public Law 100-497, and that therefore all such 
  2.33  compacts will become of no force and effect on the effective 
  2.34  date of that article.  The attorney general shall take all steps 
  2.35  necessary to obtain a decision thereon that achieves the intent 
  2.36  of section 1, subdivision 2, including a decision by the United 
  3.1   States Supreme Court. 
  3.2      Subd. 2.  [REPORTS.] The attorney general shall report to 
  3.3   the chairs of the senate and house of representatives committees 
  3.4   having jurisdiction over gambling policy on January 1, 2005, and 
  3.5   every three months thereafter, on the attorney general's 
  3.6   activities under this section.  
  3.7      Sec. 3.  [EFFECTIVE DATE.] 
  3.8      Section 2 is effective October 1, 2004. 
  3.9                              ARTICLE 2 
  3.10                       TRIBAL-STATE COMPACTS 
  3.11     Section 1.  Minnesota Statutes 2002, section 3.9221, 
  3.12  subdivision 4, is amended to read: 
  3.13     Subd. 4.  [TERMS OF COMPACT; RIGHTS OF PARTIES.] A compact 
  3.14  agreed to on behalf of the state under this section must contain:
  3.15     (1) a provision recognizing the right of each party to the 
  3.16  agreement, including the legislature by joint resolution, to 
  3.17  request that the agreement be renegotiated or replaced by a new 
  3.18  compact, and providing the terms under which either party, 
  3.19  including the legislature, can request a renegotiation or the 
  3.20  negotiation of a new compact; and 
  3.21     (2) a provision that in the event of a request for a 
  3.22  renegotiation or a new compact the existing compact will remain 
  3.23  in effect until renegotiated or replaced. a provision that 
  3.24  requires the signatory tribe to prohibit persons under the age 
  3.25  of 21 years from being in any room of any building or facility 
  3.26  on the signatory tribe's lands in which gambling is conducted; 
  3.27     (2) a provision by which the signatory tribe waives for the 
  3.28  duration of the compact its right to seek any new designation of 
  3.29  land as Indian trust land on which gaming activities under the 
  3.30  Indian Gaming Regulatory Act will be conducted; and 
  3.31     (3) a provision for a sharing with the state of gaming 
  3.32  revenues from operating of video gaming devices in excess of 
  3.33  amounts provided for in compacts signed before 2004; 
  3.34     (4) an expiration date not more than 20 years from the date 
  3.35  of signing; and 
  3.36     (5) a provision by which (i) the signatory tribe waives its 
  4.1   right to seek any further compact for any form of class III 
  4.2   gaming as defined by the act based on any form of gambling that 
  4.3   was being lawfully conducted under Minnesota law on January 1, 
  4.4   2004, and (ii) the state recognizes the right of the signatory 
  4.5   tribe to seek a compact for any other form of class III gaming 
  4.6   that is being lawfully conducted under subsequent Minnesota law 
  4.7   by any person for any purpose. 
  4.8      Sec. 2.  [GOVERNOR TO GIVE NOTICE.] 
  4.9      Pursuant to section 2.2 of the tribal-state compacts 
  4.10  entered into between the state and federally recognized Indian 
  4.11  tribes for the control of class III video games of chance, the 
  4.12  governor shall, within 30 days of the effective date of this 
  4.13  section, give notice by certified mail to the chair of each 
  4.14  Indian tribe signing such a compact with the state that the 
  4.15  governor requests commencement of negotiations for a new compact 
  4.16  to control class III video games of chance to replace the 
  4.17  existing compact.  
  4.18     Sec. 3.  [EFFECTIVE DATE.] 
  4.19     This article is effective the day following final enactment.
  4.20                             ARTICLE 3 
  4.21            REPEAL OF STATUTORY BASIS FOR VIDEO COMPACTS 
  4.22     Section 1.  Minnesota Statutes 2002, section 299L.07, 
  4.23  subdivision 2, is amended to read: 
  4.24     Subd. 2.  [EXCLUSIONS.] Notwithstanding subdivision 1, a 
  4.25  gambling device: 
  4.26     (1) may be sold by a person who is not licensed under this 
  4.27  section, if the person (i) is not engaged in the trade or 
  4.28  business of selling gambling devices, and (ii) does not sell 
  4.29  more than one gambling device in any calendar year; 
  4.30     (2) may be sold by the governing body of a federally 
  4.31  recognized Indian tribe described in subdivision 2a, paragraph 
  4.32  (b), clause (1), which is not licensed under this section, if 
  4.33  (i) the gambling device was operated by the Indian tribe, (ii) 
  4.34  the sale is to a distributor licensed under this section, and 
  4.35  (iii) the licensed distributor notifies the commissioner of the 
  4.36  purchase, in the same manner as is required when the licensed 
  5.1   distributor ships a gambling device into Minnesota; 
  5.2      (3) may be possessed by a person not licensed under this 
  5.3   section if the person holds a permit issued under section 
  5.4   299L.08; and 
  5.5      (4) (3) may be possessed by a state agency, with the 
  5.6   written authorization of the director, for display or evaluation 
  5.7   purposes only and not for the conduct of gambling. 
  5.8      Sec. 2.  Minnesota Statutes 2002, section 299L.07, 
  5.9   subdivision 2a, is amended to read: 
  5.10     Subd. 2a.  [RESTRICTIONS.] (a) A manufacturer licensed 
  5.11  under this section may sell, offer to sell, lease, or rent, in 
  5.12  whole or in part, a gambling device only to a distributor 
  5.13  licensed under this section. 
  5.14     (b) A distributor licensed under this section may sell, 
  5.15  offer to sell, market, rent, lease, or otherwise provide, in 
  5.16  whole or in part, a gambling device only to: 
  5.17     (1) the governing body of a federally recognized Indian 
  5.18  tribe that is authorized to operate the gambling device under a 
  5.19  tribal state compact under the Indian Gaming Regulatory Act, 
  5.20  Public Law 100-497, and future amendments to it; 
  5.21     (2) a person for use in the person's dwelling for display 
  5.22  or amusement purposes in a manner that does not afford players 
  5.23  an opportunity to obtain anything of value; 
  5.24     (3) another distributor licensed under this section; or 
  5.25     (4) (2) a person in another state who is authorized under 
  5.26  the laws of that state to possess the gambling device. 
  5.27     Sec. 3.  [COMMISSIONER OF PUBLIC SAFETY; ENFORCEMENT OF 
  5.28  PROVISIONS.] 
  5.29     The commissioner of public safety shall take all necessary 
  5.30  steps to prevent the possession of electronic or mechanical 
  5.31  gambling devices, as defined in Minnesota Statutes, section 
  5.32  609.75, subdivision 4, anywhere in the state except as 
  5.33  authorized by law or valid tribal-state compact.  
  5.34     Sec. 4.  [REPEALER.] 
  5.35     (a) Minnesota Statutes 2002, section 349.61, subdivision 2, 
  5.36  is repealed.  
  6.1      (b) Laws 1989, chapter 149, section 6, and Laws 1989, 
  6.2   chapter 334, article 6, section 14, are repealed. 
  6.3      Sec. 5.  [EFFECTIVE DATE.] 
  6.4      Sections 1, 2, and 3 are effective January 1, 2005.  
  6.5   Section 4 is effective January 1, 2006.  
  6.6                              ARTICLE 4 
  6.7                            CERTIFICATION 
  6.8      Section 1.  [WHEN NOT TO TAKE EFFECT.] 
  6.9      Article 3, section 4, shall not take effect if before 
  6.10  January 1, 2006, the governor files with the Office of the 
  6.11  Secretary of State a certification to the effect that 
  6.12  tribal-state compacts under the federal Indian Gaming Regulatory 
  6.13  Act, Public Law 100-497, for the control of class III video 
  6.14  games of chance in Minnesota have been signed by the governor on 
  6.15  behalf of the state and by each federally recognized Indian 
  6.16  tribe in Minnesota, and that each such compact: 
  6.17     (1) replaces any compact negotiated with the signatory 
  6.18  tribe before January 1, 2004, that authorizes the operation of 
  6.19  video games of chance by the signatory tribe; and 
  6.20     (2) complies with Minnesota Statutes, section 3.9221.