S.F. No. 180, as introduced - 86th Legislative Session (2009-2010) Posted on Jan 21, 2009
1.1A bill for an act1.2relating to gambling; authorizing the director of the State Lottery to establish
1.3lottery gaming machines and enter into a contract for the management and
1.4placement of the machines; providing powers and duties to the director;
1.5providing for gaming machine revenue;amending Minnesota Statutes 2008,
1.6sections 240.13, by adding a subdivision; 240.35, subdivision 1; 297A.94;
1.7299L.02, subdivision 1; 299L.07, subdivisions 2, 2a; 340A.410, subdivision
1.85; 349A.01, subdivision 10, by adding subdivisions; 349A.04; 349A.10,
1.9subdivisions 3, 6; 349A.13; 541.20; 541.21; 609.651, subdivision 1; 609.75,
1.10subdivisions 3, 4; 609.761, by adding a subdivision; proposing coding for new
1.11law in Minnesota Statutes, chapters 297A; 349A.
1.12BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.15 Section 1. Minnesota Statutes 2008, section 349A.01, subdivision 10, is amended to
1.17 Subd. 10. Lottery procurement contract. "Lottery procurement contract" means a
1.18contract to provide lottery products, gaming machines, maintenance of gaming machines,
1.19computer hardware and software used to monitor sales of lottery tickets and gaming
1.20machine plays, equipment used to conduct and monitor other lottery games at a gaming
1.21facility, equipment used for the conducting of other lottery games, and lottery tickets.
1.22"Lottery procurement contract" does not include a contract to provide an annuity or prize
1.23payment agreement or materials, supplies, equipment, or services common to the ordinary
1.24operation of a state agency.
1.25 Sec. 2. Minnesota Statutes 2008, section 349A.01, is amended by adding a subdivision
2.1 Subd. 14. Gaming machine. "Gaming machine" means any machine, system, or
2.2device which, upon payment of consideration in order to play a game, may award or
2.3entitle a player to a prize by reason of skill of the player or application of the element
2.4of chance, or both.
2.5 Sec. 3. Minnesota Statutes 2008, section 349A.01, is amended by adding a subdivision
2.7 Subd. 15. Gaming machine game. "Gaming machine game" means a game
2.8operated by a gaming machine as authorized by the director.
2.9 Sec. 4. Minnesota Statutes 2008, section 349A.01, is amended by adding a subdivision
2.11 Subd. 16. Gaming machine play. "Gaming machine play" means a record that
2.12proves participation in a gaming machine game.
2.13 Sec. 5. Minnesota Statutes 2008, section 349A.01, is amended by adding a subdivision
2.15 Subd. 17. Adjusted gross gaming machine revenue. "Adjusted gross gaming
2.16machine revenue" means the sum of all money received for gaming machine plays less the
2.17amount paid out in prizes.
2.18 Sec. 6. Minnesota Statutes 2008, section 349A.04, is amended to read:
2.19349A.04 LOTTERY GAME PROCEDURES.
2.20The director may adopt game procedures governing the following elements of the
2.22(1) lottery games;
2.23(2) ticket prices;
2.24(3) number and size of prizes;
2.25(4) methods of selecting winning tickets;
2.26(5) frequency and method of drawings;
2.27(6) gaming machine games; and
2.28(7) cost of gaming machine plays.
2.29The adoption of lottery game procedures is not subject to chapter 14.
2.30 Sec. 7. Minnesota Statutes 2008, section 349A.10, subdivision 3, is amended to read:
3.1 Subd. 3. Lottery operations. (a) The director shall establish a lottery operations
3.2account in the lottery fund. The director shall pay all costs of operating the lottery,
3.3including payroll costs or amounts transferred to the state treasury for payroll costs, but
3.4not including lottery prizes, from the lottery operating account. The director shall credit to
3.5the lottery operations account amounts sufficient to pay the operating costs of the lottery.
3.6(b) Except as provided in paragraph (e), the director may not credit in any fiscal
3.7year thereafter amounts to the lottery operations account which when totaled exceed
3.8nine percent of gross revenue to the lottery fund in that fiscal year. In computing total
3.9amounts credited to the lottery operations account under this paragraph the director shall
3.10disregard amounts transferred to or retained by lottery retailers as sales commissions or
3.11other compensation and amounts transferred to or retained by a racetrack pursuant to a
3.12location contract under section 349A.17.
3.13(c) The director of the lottery may not expend after July 1, 1991, more than 2-3/4
3.14percent of gross revenues in a fiscal year for contracts for the preparation, publication, and
3.15placement of advertising.
3.16(d) Except as the director determines, the lottery is not subject to chapter 16A
3.17relating to budgeting, payroll, and the purchase of goods and services.
3.18(e) In addition to the amounts credited to the lottery operations account under
3.19paragraph (b), the director is authorized, if necessary, to meet the current obligations of
3.20the lottery and to credit up to 25 percent of an amount equal to the average annual amount
3.21which was authorized to be credited to the lottery operations account for the previous three
3.22fiscal years but was not needed to meet the obligations of the lottery.
3.23(f) Notwithstanding the provisions of this subdivision, the director may not credit, in
3.24any fiscal year, to the lottery operations account which when totaled exceed ten percent of
3.25adjusted gross revenue from the operation of gaming machines at the racetrack.
3.26 Sec. 8. Minnesota Statutes 2008, section 349A.10, subdivision 6, is amended to read:
3.27 Subd. 6. Budget; plans. The director shall prepare and submit a biennial budget
3.28plan to the commissioner of finance. The governor shall recommend the maximum
3.29amount available for the lottery in the budget the governor submits to the legislature under
3.31capital expenditures shall be determined by law. Operating expenses shall not include
3.32expenses that are a direct function of lottery sales, which include the cost of lottery prizes,
3.33amounts paid to lottery retailers as sales commissions or other compensation, amounts
3.34paid to produce and deliver scratch lottery games,
3.35to operate and maintain an online gaming system, amounts paid to an outside vendor to
4.1operate and maintain a central system for gaming machines, and amounts paid to acquire
4.2and maintain gaming machines. In addition, the director shall appear at least once each
4.3fiscal year before the senate and house of representatives committees having jurisdiction
4.4over gambling policy to present and explain the lottery's plans for future games and the
4.5related advertising and promotions and spending plans for the next fiscal year.
4.6 Sec. 9. Minnesota Statutes 2008, section 349A.13, is amended to read:
4.8Nothing in this chapter:
4.9(1) authorizes the director to conduct a lottery game or contest the winner or winners
4.10of which are determined by the result of a sporting event other than a horse race conducted
4.11under chapter 240;
4.12(2) authorizes the director to install or operate a lottery device operated by coin or
4.13currency which when operated determines the winner of a game except as authorized
4.14under section 349A.17; and
4.15(3) authorizes the director to sell pull-tabs as defined under section
4.17 Sec. 10. [349A.17] GAMING MACHINES.
4.18 Subdivision 1. Location contract. (a) The director may enter into a contract with
4.19a person to provide locations for gaming machines. Contracts entered into under this
4.20section are not subject to chapter 16C. The director may only enter a contract under this
4.21subdivision with a person that holds a class A license under chapter 240. The gaming
4.22machines may only be placed at the racetrack for which the class A license under chapter
4.23240 was issued.
4.24(b) In order to be eligible for a contract under this section, the class A licensee must
4.25have conducted at least 50 days of live racing at the racetrack each year within the last five
4.26preceding calendar years. A contract under this section must contain a provision under
4.27which the contract terminates on the first day of any calendar year following a calendar
4.28year during which the class A licensee has not conducted at least 50 days of live racing at
4.29the licensee's racetrack.
4.30(c) Contracts entered into must provide for compensation to the licensee in an
4.31amount equal to at least 55 percent of adjusted gross gaming machine revenue. From the
4.32amount received by the licensee under this section, the licensee shall annually remit an
4.33amount equal to one percent of the adjusted gross gaming machine revenue to both the
4.34city or town and the county where the racetrack is located.
5.1(d) The director may cancel, suspend, or refuse to renew the location contract or
5.2impose a civil penalty if the licensee:
5.3(1) no longer holds a class A license under chapter 240;
5.4(2) fails to account for proceeds from the gaming machines;
5.5(3) fails to remit funds to the director in accordance with the location contract;
5.6(4) violates a law, rule, or order of the director;
5.7(5) fails to comply with any of the terms of the location contract; or
5.8(6) has acted in a manner prejudicial to public confidence in the integrity of the
5.9operation of the gaming machines.
5.10The cancellation, suspension, or refusal to renew the location contract or imposition
5.11of a civil penalty under this paragraph is a contested case under sections 14.57 to 14.69.
5.12(e) No gaming machines may be located within a home rule charter or statutory city
5.13or town unless the governing body of the city or town adopts a resolution approving the
5.14location of the gaming machines within the city or town.
5.15(f) The contract entered into under this section must provide for the following
5.17(1) Liquidated damages to recover the initial investment by the licensee in the event
5.18the state, through legislation or constitutional amendment, revokes all or substantially all
5.19of the forms of gambling authorized under this section. The liquidated damages may not
5.20be greater than the unpaid balance of any debt incurred by the licensee after the location
5.21contract has been executed and is limited to the debt incurred by the licensee for the
5.22gaming facility license, initial construction, or acquisition of the gaming facility less the
5.23present market value of the property or other assets related to the debt. Any liquidated
5.24damages provision must expire within ten years.
5.25(2) All costs associated with managing the day-to-day activity of gaming machines,
5.26including, but not limited to, routine and minor service and maintenance, security
5.27monitoring, verifying winners, paying winners, collecting money from gaming machines,
5.28and advertising and marketing of gaming machines shall be borne by the licensee.
5.29 Subd. 2. Operation. (a) All gaming machines that are placed at a racetrack pursuant
5.30to subdivision 1 must be operated and controlled by the director.
5.31(b) Gaming machines must be owned or leased by the director.
5.32(c) Gaming machines must be maintained by the lottery, or by a vendor that is under
5.33the control and direction of the director.
5.34(d) The director must have a central communications system that monitors activities
5.35and provides auditing program information on each gaming machine. The central
5.36communications system must be located at a lottery office.
6.1(e) The director must approve the general security arrangements associated with and
6.2relating to the operation of the gaming machines.
6.3(f) Advertising and promotional material produced by the licensee relating to gaming
6.4machines located at the racetrack must be approved by the director.
6.5(g) There must be a reasonable number of gaming machines that are accessible
6.6to individuals with disabilities. For the purposes of this subdivision, "individuals with
6.7disabilities" includes any person who has a physical or sensory impairment which
6.8materially limits one or more major life activities.
6.9(h) A reasonable number of gaming machines that are placed at a racetrack pursuant
6.10to subdivision 1 must afford players the option to receive winnings in the form of either
6.11coins or tokens rather than in the form of a paper receipt.
6.12(i) Gaming machines must maintain on nonresettable meters a permanent record,
6.13capable of being printed out, of all transactions by the machine and all entries into the
6.15(j) The director may implement other controls as are deemed necessary to ensure
6.16and maintain the integrity of gaming machines operated under this section.
6.17 Subd. 3. Games. The director shall specify the games that may be placed on a
6.18gaming machine as set forth under section 349A.04. Gaming machines may conduct
6.19pari-mutuel wagering and display horse races pursuant to specifications set forth by the
6.21 Subd. 4. Examination of machines. The director shall examine prototypes of
6.22gaming machines and require that the manufacturer of the machine pay the cost of the
6.23examination. The director may contract for the examination of gaming machines. The
6.24director may require working models of a gaming machine transported to the locations the
6.25director designates for testing, examination, and analysis. The manufacturer shall pay all
6.26costs of any testing, examination, analysis, and transportation of the machine model.
6.27 Subd. 5. Prizes. A person who plays a gaming machine or plays any other lottery
6.28game at the gaming facility agrees to be bound by the rules and game procedures
6.29applicable to that particular game. The player acknowledges that the determination of
6.30whether the player has won a prize is subject to the rules and game procedures adopted
6.31by the director, claim procedures established by the director for that game, and any
6.32confidential or public validation tests established by the director for that game. A prize
6.33claimed from the play of a gaming machine game or the conduct of any other lottery game
6.34is not subject to section 349A.08, subdivision 8.
6.35 Subd. 6. Odds. The approximate odds of winning a prize from a gaming machine
6.36must be displayed on the face of the screen.
7.1 Subd. 7. Prohibitions. A person under the age of 18 years may not play a game on
7.2a gaming machine or claim a prize from the operation of a gaming machine.
7.3 Subd. 8. Compulsive gambling notice. The licensee shall prominently post, in
7.4areas of the gaming facility where gaming machines are located, the toll-free telephone
7.5number established by the commissioner of human services in connection with the
7.6problem and compulsive gambling program. The licensee shall establish, with the
7.7approval of the director, a proactive plan relating to problem and compulsive gambling.
7.8 Subd. 9. Local licenses; local fees. A political subdivision may not require a license
7.9to operate a gaming machine, restrict or regulate the placement of gaming machines, or
7.10impose a tax or fee on the business of operating gaming machines.
7.11 Subd. 10. Reimbursement; racing commission. The racing commission under
7.12section 240.02 shall require the licensee to reimburse the commission's actual costs,
7.13including personnel costs, of regulating the licensee under this section. Amounts received
7.14under this subdivision must be deposited as provided in section 240.155, subdivision 1.
7.15 Sec. 11. EFFECTIVE DATE.
7.16This article is effective the day following final enactment.
7.19 Section 1. Minnesota Statutes 2008, section 240.35, subdivision 1, is amended to read:
7.20 Subdivision 1. Generally. A licensee of the commission may detain a person if
7.21the licensee has probable cause to believe that the person detained has violated section
7.23machines are located under section 349A.17
7.24means the commission's director of racing security or a security officer licensed under
7.25Minnesota Rules, chapter 7878.
7.26 Sec. 2. Minnesota Statutes 2008, section 299L.02, subdivision 1, is amended to read:
7.27 Subdivision 1. Lottery. (a) The director shall when required under chapter 349A or
7.28when requested by the director of the lottery conduct background checks on employees of
7.29the State Lottery, lottery retailers, and bidders of lottery procurement contracts.
7.30 (b) The director shall, when so requested by the director of the State Lottery or when
7.31the director believes it to be reasonable and necessary, conduct investigations of lottery
7.32retailers, applicants for lottery retailer contracts, suppliers of goods or services to the State
7.33Lottery, and persons bidding on contracts for goods or services with the State Lottery.
8.1 (c) The director shall conduct an annual security audit of the State Lottery, or arrange
8.2for such an audit by an outside agency or person, firm, or corporation. The director shall
8.3report to the director of the lottery on the results of the audit.
8.4 (d) The director shall deposit in a separate account in the state treasury all money
8.5received from the director of the State Lottery for charges for investigations and
8.6background checks relating to the owning and operating of gaming machines under
8.7chapter 349A. Money in the account is appropriated to the director for the purpose of
8.8carrying out the director's powers and duties under this subdivision.
8.9 Sec. 3. Minnesota Statutes 2008, section 299L.07, subdivision 2, is amended to read:
8.10 Subd. 2. Exclusions. Notwithstanding subdivision 1, a gambling device:
8.11(1) may be sold by a person who is not licensed under this section, if the person (i) is
8.12not engaged in the trade or business of selling gambling devices, and (ii) does not sell
8.13more than one gambling device in any calendar year;
8.14(2) may be sold by the governing body of a federally recognized Indian tribe
8.15described in subdivision 2a, paragraph (b), clause (1), which is not licensed under this
8.16section, if (i) the gambling device was operated by the Indian tribe, (ii) the sale is to
8.17a distributor licensed under this section, and (iii) the licensed distributor notifies the
8.18commissioner of the purchase, in the same manner as is required when the licensed
8.19distributor ships a gambling device into Minnesota;
8.20(3) may be possessed by a person not licensed under this section if the person holds
8.21a permit issued under section
8.22(4) may be possessed by a state agency, with the written authorization of the director,
8.23for display or evaluation purposes only and not for the conduct of gambling; and
8.24(5) may be possessed by the State Lottery as authorized under chapter 349A.
8.25 Sec. 4. Minnesota Statutes 2008, section 299L.07, subdivision 2a, is amended to read:
8.26 Subd. 2a. Restrictions. (a) A manufacturer licensed under this section may sell,
8.27offer to sell, lease, or rent, in whole or in part, a gambling device only to a distributor
8.28licensed under this section or to the State Lottery as authorized under chapter 349A.
8.29(b) A distributor licensed under this section may sell, offer to sell, market, rent,
8.30lease, or otherwise provide, in whole or in part, a gambling device only to:
8.31(1) the governing body of a federally recognized Indian tribe that is authorized
8.32to operate the gambling device under a tribal state compact under the Indian Gaming
8.33Regulatory Act, Public Law 100-497, and future amendments to it;
9.1(2) a person for use in the person's dwelling for display or amusement purposes in a
9.2manner that does not afford players an opportunity to obtain anything of value;
9.3(3) another distributor licensed under this section;
9.4(4) a person in another state who is authorized under the laws of that state to possess
9.5the gambling device; or
9.6(5) the State Lottery as authorized under chapter 349A.
9.7 Sec. 5. Minnesota Statutes 2008, section 340A.410, subdivision 5, is amended to read:
9.8 Subd. 5. Gambling prohibited. (a) Except as otherwise provided in this
9.9subdivision, no retail establishment licensed to sell alcoholic beverages may keep, possess,
9.10or operate, or permit the keeping, possession, or operation on the licensed premises of dice
9.11or any gambling device as defined in section
9.12(b) Gambling equipment may be kept or operated and raffles conducted on licensed
9.13premises and adjoining rooms when the use of the gambling equipment is authorized by
9.14(1) chapter 349, (2) a tribal ordinance in conformity with the Indian Gaming Regulatory
9.15Act, Public Law 100-497, or (3) a tribal-state compact authorized under section
9.16(c) Lottery tickets may be purchased and sold within the licensed premises as
9.17authorized by the director of the lottery under chapter 349A.
9.18(d) Dice may be kept and used on licensed premises and adjoining rooms as
9.19authorized by section
9.20(e) Gambling devices may be operated and gambling permitted at a racetrack
9.21as authorized by chapter 349A.
9.22 Sec. 6. Minnesota Statutes 2008, section 541.20, is amended to read:
9.23541.20 RECOVERY OF MONEY LOST.
9.24Every person who, by playing at cards, dice, or other game, or by betting on the
9.25hands or sides of such as are gambling, shall lose to any person so playing or betting
9.26any sum of money or any goods, and pays or delivers the same, or any part thereof, to
9.27the winner, may sue for and recover such money by a civil action, before any court
9.28of competent jurisdiction. For purposes of this section, gambling shall not include
9.29pari-mutuel wagering conducted under a license issued pursuant to chapter 240, purchase
9.30or sale of tickets in the state lottery, purchase of gaming machine plays as authorized under
9.31chapter 349A, or gambling authorized under chapters 349 and 349A.
9.32 Sec. 7. Minnesota Statutes 2008, section 541.21, is amended to read:
9.33541.21 COMMITMENTS FOR GAMBLING DEBT VOID.
10.1Every note, bill, bond, mortgage, or other security or conveyance in which the whole
10.2or any part of the consideration shall be for any money or goods won by gambling or
10.3playing at cards, dice, or any other game whatever, or by betting on the sides or hands
10.4of any person gambling, or for reimbursing or repaying any money knowingly lent or
10.5advanced at the time and place of such gambling or betting, or lent and advanced for any
10.6gambling or betting to any persons so gambling or betting, shall be void and of no effect
10.7as between the parties to the same, and as to all persons except such as hold or claim
10.8under them in good faith, without notice of the illegality of the consideration of such
10.9contract or conveyance. The provisions of this section shall not apply to: (1) pari-mutuel
10.10wagering conducted under a license issued pursuant to chapter 240; (2) purchase of tickets
10.11in the state lottery or other wagering authorized under chapter 349A; (3) gaming activities
10.12conducted pursuant to the Indian Gaming Regulatory Act, 25 U.S.C. 2701 et seq.; or (4)
10.13lawful gambling activities permitted under chapter 349.
10.14 Sec. 8. Minnesota Statutes 2008, section 609.651, subdivision 1, is amended to read:
10.15 Subdivision 1.
10.16under subdivision 4 if the person does any of the following with intent to defraud the
10.18 (1) alters or counterfeits a state lottery ticket or a credit receipt from a state lottery
10.20 (2) knowingly presents an altered or counterfeited state lottery ticket or credit receipt
10.21from a state lottery gaming machine for payment;
10.22 (3) knowingly transfers an altered or counterfeited state lottery ticket or credit
10.23receipt from a state lottery gaming machine to another person;
10.24 (4) tampers with or manipulates the outcome, prize payable, or operation of a state
10.25lottery gaming machine; or
10.26 (5) otherwise claims a lottery prize by means of fraud, deceit, or misrepresentation.
10.27 Sec. 9. Minnesota Statutes 2008, section 609.75, subdivision 3, is amended to read:
10.28 Subd. 3. What are not bets. The following are not bets:
10.29(1) a contract to insure, indemnify, guarantee or otherwise compensate another for a
10.30harm or loss sustained, even though the loss depends upon chance;
10.31(2) a contract for the purchase or sale at a future date of securities or other
11.1(3) offers of purses, prizes or premiums to the actual contestants in any bona fide
11.2contest for the determination of skill, speed, strength, endurance, or quality or to the bona
11.3fide owners of animals or other property entered in such a contest;
11.4(4) the game of bingo when conducted in compliance with sections
11.5(5) a private social bet not part of or incidental to organized, commercialized, or
11.7(6) the operation of equipment or the conduct of a raffle under sections
11.9exempt from licensing under section
11.10(7) pari-mutuel betting on horse racing when the betting is conducted under chapter
11.12(8) the purchase and sale of state lottery tickets and plays on a gaming machine
11.13under chapter 349A.
11.14 Sec. 10. Minnesota Statutes 2008, section 609.75, subdivision 4, is amended to read:
11.15 Subd. 4. Gambling device. A gambling device is a contrivance the purpose of which
11.16is that for a consideration a player is afforded an opportunity to obtain something of value,
11.17other than free plays, automatically from the machine or otherwise, the award of which
11.18is determined principally by chance, whether or not the contrivance is actually played.
11.19"Gambling device" also includes a video game of chance, as defined in subdivision 8, but
11.20does not include a gaming machine operated by the State Lottery under chapter 349A.
11.21 Sec. 11. Minnesota Statutes 2008, section 609.761, is amended by adding a subdivision
11.23 Subd. 6. Gaming machines. Sections 609.755 and 609.76 do not prohibit the
11.24manufacture, possession, sale, or operation of a gaming machine under chapter 349A.
11.25 Sec. 12. EFFECTIVE DATE.
11.26This article is effective the day following final enactment.
11.29 Section 1. Minnesota Statutes 2008, section 240.13, is amended by adding a
11.30subdivision to read:
11.31 Subd. 5a. Purses; gaming machines. From the commission received by a licensee
11.32pursuant to a gaming machine location contract entered into under section 349A.17, the
12.1licensee must set aside an amount equal to not less than 7.25 percent of the adjusted
12.2gross gaming machine revenues as defined under chapter 349A, for purses for live horse
12.3races conducted by the licensee. Purse payments made pursuant to this subdivision are
12.4in addition to purse payments otherwise established by law or contract. Twenty percent
12.5of the money set aside for purses pursuant to this subdivision shall be transferred to the
12.6commission and used for the purposes in section 240.18, subdivisions 2, paragraph
12.7(d), and 3, paragraph (b), subject to the proportionality requirement in section 240.18,
12.8subdivision 1. The licensee and the horseperson's organization representing the majority
12.9of horsepersons who have raced at the racetrack during the preceding 12 months may
12.10negotiate percentages different from those stated in this section if the agreement is in
12.11writing and filed with the racing commission.
12.12 Sec. 2. [297A.651] LOTTERY GAMING MACHINES; IN-LIEU TAX.
12.13Adjusted gross revenue from the operation of gaming machines authorized under
12.14chapter 349A are exempt from the tax imposed under section 297A.62. The State Lottery
12.15must on or before the 20th day of each month transmit to the commissioner an amount
12.16equal to the adjusted gross revenue from the operation of gaming machines, as defined
12.17in section 349A.01, for the previous month multiplied by 35 percent. The commissioner
12.18shall deposit the money transmitted under this section in the state treasury as provided
12.19in section 297A.94.
12.20 Sec. 3. Minnesota Statutes 2008, section 297A.94, is amended to read:
12.21297A.94 DEPOSIT OF REVENUES.
12.22(a) Except as provided in this section, the commissioner shall deposit the revenues,
12.23including interest and penalties, derived from the taxes imposed by this chapter in the state
12.24treasury and credit them to the general fund.
12.25(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic
12.26account in the special revenue fund if:
12.27(1) the taxes are derived from sales and use of property and services purchased for
12.28the construction and operation of an agricultural resource project; and
12.29(2) the purchase was made on or after the date on which a conditional commitment
12.30was made for a loan guaranty for the project under section
12.31The commissioner of finance shall certify to the commissioner the date on which the
12.32project received the conditional commitment. The amount deposited in the loan guaranty
12.33account must be reduced by any refunds and by the costs incurred by the Department of
12.34Revenue to administer and enforce the assessment and collection of the taxes.
13.1(c) The commissioner shall deposit the revenues, including interest and penalties,
13.2derived from the taxes imposed on sales and purchases included in section
13.5(1) first to the general obligation special tax bond debt service account in each fiscal
13.6year the amount required by section
13.7(2) after the requirements of clause (1) have been met, the balance to the general
13.9(d) The commissioner shall deposit the revenues, including interest and penalties,
13.10collected under section
13.11general fund. By July 15 of each year the commissioner shall transfer to the highway user
13.12tax distribution fund an amount equal to the excess fees collected under section
13.16penalties, transmitted to the commissioner under section
13.17the commissioner in the state treasury as follows:
13.18(1) 50 percent of the receipts must be deposited in the heritage enhancement account
13.19in the game and fish fund, and may be spent only on activities that improve, enhance, or
13.20protect fish and wildlife resources, including conservation, restoration, and enhancement
13.21of land, water, and other natural resources of the state;
13.22(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and
13.23may be spent only for state parks and trails;
13.24(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and
13.25may be spent only on metropolitan park and trail grants;
13.26(4) three percent of the receipts must be deposited in the natural resources fund, and
13.27may be spent only on local trail grants; and
13.28(5) two percent of the receipts must be deposited in the natural resources fund,
13.29and may be spent only for the Minnesota Zoological Garden, the Como Park Zoo and
13.30Conservatory, and the Duluth Zoo.
13.31(f) Revenue, including interest and penalties, transmitted to the commissioner under
13.32section 297A.651 must be deposited by the commissioner in the state treasury in the
13.35for traditional sources of funding for the purposes specified, but the dedicated revenue
13.36shall supplement traditional sources of funding for those purposes. Land acquired with
14.1money deposited in the game and fish fund under paragraph (e) must be open to public
14.2hunting and fishing during the open season, except that in aquatic management areas or
14.3on lands where angling easements have been acquired, fishing may be prohibited during
14.4certain times of the year and hunting may be prohibited. At least 87 percent of the money
14.5deposited in the game and fish fund for improvement, enhancement, or protection of fish
14.6and wildlife resources under paragraph (e) must be allocated for field operations.
14.7 Sec. 4. EFFECTIVE DATE.
14.8This article is effective the day following final enactment.
14.11 Section 1. LOTTERY BUDGET; GAMING MACHINES.
14.12The director of the State Lottery shall submit a budget for the operation of gaming
14.13machines at a racetrack as authorized under Minnesota Statutes, section 349A.17, to
14.14the commissioner of finance. Notwithstanding Minnesota Statutes, section 349A.10,
14.15subdivision 6, the director of the State Lottery may expend amounts necessary to operate
14.16gaming machines. Amounts expended by the director of the State Lottery for the conduct
14.17of gaming machines in fiscal years 2010 and 2011 are not subject to the maximum amount
14.18set in law for the operation of the lottery.
14.19 Sec. 2. SEVERABILITY; SAVINGS.
14.20If any part of this act is found to be invalid because it is in conflict with a provision
14.21of the Constitution of the state of Minnesota or the Constitution of the United States, or
14.22for any other reason, all other provisions of this act shall remain valid and any rights,
14.23remedies, and privileges that have been otherwise accrued by this act, shall remain in
14.24effect and may be proceeded with and concluded under the provisions of this act.
14.25 Sec. 3. EFFECTIVE DATE.
14.26This article is effective the day following final enactment.