Minnesota HF 988: Racino; State Lottery director authorized to establish gaming machines, gaming machine revenue fee imposed, and powers and duties provided to the director.

Bill Text

02/06/13 REVISOR JSK/KS 13-1525
A bill for an act1.1
relating to gambling; authorizing the director of the State Lottery to establish1.2
gamingmachines;imposingafeeongamingmachinerevenue;providingpowers1.3
and duties to the director; amending Minnesota Statutes 2012, sections 240.13,1.4
by adding subdivisions; 299L.07, subdivisions 2, 2a; 340A.410, subdivision1.5
5; 349A.01, subdivision 10, by adding subdivisions; 349A.10, subdivision1.6
3; 349A.13; 541.20; 541.21; 609.75, subdivision 3; 609.761, subdivision 2;1.7
proposing coding for new law in Minnesota Statutes, chapters 297A; 349A;1.8
repealing Minnesota Statutes 2012, section 240.30, subdivision 8.1.9
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:1.10
ARTICLE 11.11
RACINO1.12
Section 1. [297A.651] LOTTERY GAMING MACHINES; FEE.1.13
Adjusted gross revenue from the operation of gaming machines authorized under1.14
chapter 349A is exempt from the taxes imposed under section 297A.62, chapter 297E,1.15
or any other tax, permit, or assessment for conducting a gambling activity that is not1.16
imposedherein. TheStateLotterymust,onorbeforethe20thdayofeachmonth,transmit1.17
to the commissioner an amount equal to the adjusted gross revenue from the operation1.18
of gaming machines, as defined in section 349A.01, for the previous month multiplied1.19
by: (1) 25 percent of annual adjusted gross revenue generated by the licensee up to1.20
$125,000,000; (2) 30 percent of annual adjusted gross revenue generated by the licensee1.21
between $125,000,000 and $200,000,000; and (3) 40 percent of annual adjusted gross1.22
revenue generated by the licensee in excess of $200,000,000. The commissioner shall1.23
deposit the money transmitted under this section in the state treasury. From the amounts1.24
transmittedbythecommissioner,$1,000,000isannuallyappropriatedtothecommissioner1.25
of human services for the compulsive gambling treatment program established in section1.26
Article 1 Section 1. 1
This Document can be made available
in alternative formats upon request State of Minnesota
HOUSE OF REPRESENTATIVES
H. F. No. 988
EIGHTY-EIGHTH SESSION
02/28/2013 Authored by Hackbarth
The bill was read for the first time and referred to the Committee on Commerce and Consumer Protection Finance and Policy

02/06/13 REVISOR JSK/KS 13-1525
245.98; provided, however, that this appropriation supplement and not replace existing2.1
funding for the program. The remainder of money transmitted under this section shall2.2
be deposited in the state treasury.2.3
Sec. 2. Minnesota Statutes 2012, section 299L.07, subdivision 2, is amended to read:2.4
Subd. 2. Exclusions. Notwithstanding subdivision 1, a gambling device:2.5
(1)maybesoldbyapersonwhoisnotlicensedunderthissection,iftheperson(i)is2.6
not engaged in the trade or business of selling gambling devices, and (ii) does not sell2.7
more than one gambling device in any calendar year;2.8
(2) may be sold by the governing body of a federally recognized Indian tribe2.9
described in subdivision 2a, paragraph (b), clause (1), which is not licensed under this2.10
section, if (i) the gambling device was operated by the Indian tribe, (ii) the sale is to2.11
a distributor licensed under this section, and (iii) the licensed distributor notifies the2.12
commissioner of the purchase, in the same manner as is required when the licensed2.13
distributor ships a gambling device into Minnesota;2.14
(3) may be possessed by a person not licensed under this section if the person holds2.15
a permit issued under section 299L.08; and2.16
(4)maybepossessedbyastateagency,withthewrittenauthorizationofthedirector,2.17
for display or evaluation purposes only and not for the conduct of gambling.; and2.18
(5) may be possessed by the State Lottery as authorized under chapter 349A.2.19
Sec. 3. Minnesota Statutes 2012, section 299L.07, subdivision 2a, is amended to read:2.20
Subd. 2a. Restrictions. (a) A manufacturer licensed under this section may sell,2.21
offer to sell, lease, or rent, in whole or in part, a gambling device only to a distributor2.22
licensed under this section or to the State Lottery as authorized under chapter 349A.2.23
(b) A distributor licensed under this section may sell, offer to sell, market, rent,2.24
lease, or otherwise provide, in whole or in part, a gambling device only to:2.25
(1) the governing body of a federally recognized Indian tribe that is authorized2.26
to operate the gambling device under a tribal state compact under the Indian Gaming2.27
Regulatory Act, Public Law 100-497, and future amendments to it;2.28
(2) a person for use in the person's dwelling for display or amusement purposes in a2.29
manner that does not afford players an opportunity to obtain anything of value;2.30
(3) another distributor licensed under this section; or2.31
(4) a person in another state who is authorized under the laws of that state to possess2.32
the gambling device.; or2.33
(5) the State Lottery as authorized under chapter 349A.2.34
Article 1 Sec. 3