1.1.................... moves to amend H.F. No. 2100 as follows:
1.2Delete everything after the enacting clause and insert:

1.4The jobs, family, and economic development fund is created as a separate fund in
1.5the state treasury. The fund consists of money deposited in the fund pursuant to section
1.6240.31, subdivision 5. Appropriations from the fund may be on an annual or biennial basis
1.7and are dedicated for the following purposes.
1.8(a) Twenty percent of the fund is dedicated and may be appropriated for agricultural
1.9and rural development, including livestock and biofuel development grants and
1.10investments to stimulate other businesses and employment opportunities.
1.11(b) Twenty percent of the fund is dedicated and may be appropriated for early
1.12childhood development and family education.
1.13(c) Twenty percent of the fund is dedicated and may be appropriated for research
1.14and development of bioscience and medical technology businesses and employment
1.15opportunities. During the first two years, 50 percent of the grants authorized by this
1.16paragraph shall be for attracting bioscience and high-technology jobs to the Elk Run Park
1.17and the University of Minnesota Research Parks.
1.18(d) Twenty percent of the fund is dedicated and may be appropriated for athletic,
1.19recreational, and extracurricular facilities and programs and to stimulate capital
1.20improvements and employment.
1.21(e) Twenty percent of the fund is dedicated and may be appropriated for general
1.22fund expenditures.

1.23    Sec. 2. Minnesota Statutes 2008, section 240.07, subdivision 3, is amended to read:
1.24    Subd. 3. License issuance. (a) If after considering the information received from
1.25the hearing and investigations, the commission determines that the applicant will conduct
1.26horse racing in accordance with all applicable laws and rules, will not adversely affect the
2.1public health, welfare, and safety, that the license will not create a competitive situation
2.2that will adversely affect racing and the public interest and that the applicant is fit to
2.3sponsor and manage racing, the commission may issue a class B license.
2.4(b) If the commission determines that the licensee will operate a card club in
2.5accordance with all applicable law and rules and the applicant's approved plan of operation
2.6under section 240.30, subdivision 6, that the operation of a card club by the licensee will
2.7not adversely affect the public health, welfare, and safety, and that the licensee is fit to
2.8operate a card club, the commission may include with the class B license an authorization
2.9to conduct a card club at the licensee's class A racetrack as provided in section 240.30.
2.10The commission may give an interim authorization for the operation of a card club that
2.11is effective until the expiration of the licensee's class B license and may charge for the
2.12interim authorization a proportionate amount of the additional class B license fee under
2.13section 240.10.
2.14(c) If the commission determines that the licensee will operate additional gambling
2.15activities under section 240.31 in accordance with applicable laws and rules and the
2.16applicant's approved plan of operation, and that the operation of the activity will not
2.17adversely affect the public health, welfare, and safety, and that the licensee is fit to conduct
2.18the activity, the commission may include with the class B license an authorization to
2.19conduct additional gambling activities at the licensee's class A racetrack as provided in
2.20section 240.31. The commission may give an interim authorization for the operation of
2.21the activity that is effective until the expiration of the licensee's class B license. The
2.22commission shall not authorize a class B licensee to conduct gambling activities, pursuant
2.23to section 240.31, unless the licensee has, within the preceding 12 months, conducted 75
2.24days of live racing, consisting of not less than eight live races on each racing day, at the
2.25class A facility where the licensee conducts racing. For licensees seeking approval for the
2.26first time, the 75-day racing requirement shall be deemed to have been met if the licensee
2.27has applied for and been granted at least 75 days of live racing to be conducted in the next
2.28race meet. The live racing requirement established by this paragraph may be adjusted
2.29by written agreement between a class B licensee and the horsepersons' organization
2.30representing the majority of all owners and trainers licensed by the commission. Any
2.31agreement entered into under this paragraph must be filed with the commission.
2.32(d) The license is for a period of one year.

2.33    Sec. 3. [240.31] OTHER GAMES.
2.34    Subdivision 1. Authorization. The commission may authorize a class B operator
2.35of a class A racetrack, which is specifically authorized to conduct gambling activities in
3.1addition to pari-mutuel horse race wagering, to operate gaming machines and to conduct
3.2banked card games. For the purposes of this subdivision, a "gaming machine" means any
3.3device that may provide something of value to a person operating the device, the award of
3.4which is based, in whole or in part, upon chance.
3.5    Subd. 2. Installation and operation permitted. A class B licensee authorized by
3.6this section may own or lease, install, maintain, and operate gaming machines within
3.7the licensed premises of the licensee's class A racetrack, as defined in the approved
3.8class A license, if the commission has authorized the operation as provided in section
3.9240.07, subdivision 3, paragraph (c). The commission may withdraw its authorization
3.10for operation of gaming machines at any time for a violation of a law or rule governing
3.11gaming machine operation.
3.12    Subd. 3. Supervision. (a) A class B licensee who operates gaming machines at
3.13the licensee's class A racetrack is responsible for conducting and supervising gaming
3.14machine play and operation, providing all necessary equipment, services, and personnel,
3.15and reimbursing the commission for costs related to gaming machine regulation and
3.17(b) The commission and its representatives, and the director of the Division of
3.18Alcohol and Gambling Enforcement and the division's representatives, have the right, at
3.19any time without prior notice and without a search warrant, to (1) inspect the licensee's
3.20books, records, and other indicators of total plays on and gross receipts from gaming
3.21machines on the licensed premises, (2) inspect any computer hardware or software that
3.22relate to the operation of gaming machines on the licensed premises, and (3) have
3.23unrestricted access to any part of any gaming machine on the licensed premises.
3.24    Subd. 4. Plan of operation. (a) The commission shall not authorize a class
3.25B licensee to operate gaming machines unless the licensee has submitted, and the
3.26commission has approved, a plan of operation for gaming machine operation. The plan
3.27must set forth all necessary details for the operation of gaming machines, including but
3.28not limited to:
3.29(1) types of games to be offered;
3.30(2) designation of the licensee's employees who will have access to the interior
3.31and exterior of gaming machines;
3.32(3) designation of the licensee's employees who will have access to cash inserted
3.33and removed from gaming machines;
3.34(4) security measures and internal control systems to be adopted and implemented
3.35by the licensee to insure integrity of gaming machine play and security of all money
3.36removed from gaming machines;
4.1(5) measures to be adopted and implemented by the licensee to insure the security
4.2and safety of patrons of that portion of the licensed premises where gaming machines
4.3are operated;
4.4(6) a description of the design, manufacture, and operation of gaming machines the
4.5licensee will own or lease and operate; and
4.6(7) a plan for the training of all personnel who work in that portion of the licensed
4.7premises where gaming machines are operated in the identification of problem gamblers
4.8and appropriate action to prevent or control problem gambling.
4.9(b) Deviation from the standards in paragraph (a) requires prior approval of the
4.10commission in the same manner as amendments to the plan of operation under this
4.12    Subd. 5. Amendments to plan. The licensee may amend the plan of operation and
4.13implement those amendments only with the commission's prior approval.
4.14    Subd. 6. Violations of plan. (a) A violation of an approved plan of operation,
4.15or implementation of an amendment to an approved plan of operation without the
4.16commission's prior approval, is deemed to be a violation of law or a rule of the commission.
4.17(b) Gaming machine play and operation are deemed to be relevant to the integrity of
4.18horse racing activities in Minnesota for purposes of sections 240.03; 240.06, subdivision
4.197; 240.08; and 240.27, subdivision 1.
4.20    Subd. 7. Removal of nonconforming machines. The commission or its authorized
4.21representatives, and the director of alcohol and gambling enforcement and its authorized
4.22representatives, may administratively order a class B licensee to remove from use any
4.23gaming machine that the commission or director determines to be out of compliance with
4.24the approved plan of operation.
4.25    Subd. 8. Minimum age for play. A licensee may not permit a person under the age
4.26of 18 to play a game on or win a prize from a gaming machine that the licensee operates.
4.27Violation of this subdivision is a gross misdemeanor.
4.28    Subd. 9. Posting of notice. A class B licensee who has been authorized to
4.29operate gaming machines must prominently post, in the portion of the licensed premises
4.30where gaming machines are operated, the toll-free telephone number established by the
4.31commissioner of human services in connection with the compulsive gambling program
4.32established under section 245.98.
4.33    Subd. 10. Local regulation prohibited. Except as provided in section 240.17, a
4.34political subdivision may not prohibit or regulate gaming machines authorized under this
4.35section, or impose a tax on the proceeds of gaming machines authorized under this section.
5.1    Subd. 11. Purses. From the sum of all money received by the licensee from
5.2gambling activities authorized under subdivision 1, less the amount paid out in prizes
5.3and winnings and fees required, pursuant to subdivision 14, the licensee must set aside
5.4a minimum of ten percent for purses for live horse races conducted at class A facilities
5.5in the state. The minimum amount of purse set-aside is increased to 14 percent for any
5.6activities conducted five years or more after the enactment of this section. Set-asides
5.7required by this paragraph shall be transmitted to the commission which shall establish
5.8an account for each breed racing in the state. The commission shall allocate these funds
5.9based on the percentage of wagering handled on each breed for races conducted at class
5.10A facilities as compared to the total amount of wagering handled on races conducted at
5.11class A facilities during the previous calendar year. The commission shall transfer 15
5.12percent of the amount allocated to each breed to its breeder's fund to be distributed in the
5.13manner provided for money generated by full racing card simulcasting, pursuant to section
5.14240.15, subdivision 6. The commission shall routinely transfer the remaining money in
5.15the accounts to the licensees conducting racing for each breed and direct the licensee to
5.16augment the purses for that breed with the funds received from the commission. Purse
5.17augmentations required pursuant to this subdivision are in addition to purse payments
5.18otherwise established by law or contract.
5.19    Subd. 12. Reimbursement to commission. The commission shall require that
5.20the licensee reimburse it for the commission's actual costs of regulating any additional
5.21gambling activities under this section. Amounts received under this subdivision must be
5.22deposited as provided in section 240.155, subdivision 1.
5.23    Subd. 13. Reporting. The class B licensee shall report all income generated by the
5.24additional gambling activities in an annual report to the Racing Commission. The report
5.25shall also account for all costs of operation, taxes paid, purses paid, and amounts paid to
5.26the breeder's fund.
5.27    Subd. 14. Fee. The licensee must pay to the commission an annual gambling
5.28activities fee equal to 32 percent of all money received by the licensee from gambling
5.29activities authorized under this section, less the amount paid out in prizes and winnings.
5.30The fee established by this subdivision shall be 42 percent on amounts received by a
5.31licensee in excess of $125,000,000 in a calendar year, less the amount paid out in prizes
5.32and winnings. The licensee must pay this fee on a quarterly basis. The commission shall
5.33distribute the fee revenue it collects, on a quarterly basis, as follows:
5.34(1) one percent of the amount paid by each licensee to the city in which the licensee
5.35is conducting games authorized, pursuant to section 240.31, is located;
6.1(2) one percent to the county in which the licensee is conducting games authorized,
6.2pursuant to section 240.31, is located; and
6.3(3) the remainder to the commissioner of revenue for deposit in the jobs, family, and
6.4economic development fund established in section 3.886.

6.5    Sec. 4. Minnesota Statutes 2008, section 240.35, subdivision 1, is amended to read:
6.6    Subdivision 1. Generally. A licensee of the commission may detain a person if
6.7the licensee has probable cause to believe that the person detained has violated section
6.8609.76 while at a card club authorized by section 240.30, or participating in gambling
6.9activities authorized by section 240.31. For purposes of this section, "licensee" means the
6.10commission's director of racing security or a security officer licensed under Minnesota
6.11Rules, chapter 7878.

6.12    Sec. 5. Minnesota Statutes 2008, section 299L.07, subdivision 2, is amended to read:
6.13    Subd. 2. Exclusions. Notwithstanding subdivision 1, a gambling device:
6.14(1) may be sold by a person who is not licensed under this section, if the person (i) is
6.15not engaged in the trade or business of selling gambling devices, and (ii) does not sell
6.16more than one gambling device in any calendar year;
6.17(2) may be sold by the governing body of a federally recognized Indian tribe
6.18described in subdivision 2a, paragraph (b), clause (1), which is not licensed under this
6.19section, if (i) the gambling device was operated by the Indian tribe, (ii) the sale is to
6.20a distributor licensed under this section, and (iii) the licensed distributor notifies the
6.21commissioner of the purchase, in the same manner as is required when the licensed
6.22distributor ships a gambling device into Minnesota;
6.23(3) may be possessed by a person not licensed under this section if the person holds
6.24a permit issued under section 299L.08; and
6.25(4) may be possessed by a state agency, with the written authorization of the director,
6.26for display or evaluation purposes only and not for the conduct of gambling; and
6.27(5) may be possessed by a licensee authorized to conduct gambling activities
6.28pursuant to section 240.31, subdivision 1.

6.29    Sec. 6. Minnesota Statutes 2008, section 299L.07, subdivision 2a, is amended to read:
6.30    Subd. 2a. Restrictions. (a) A manufacturer licensed under this section may sell,
6.31offer to sell, lease, or rent, in whole or in part, a gambling device only to a distributor
6.32licensed under this section or to a licensee authorized to conduct gambling activities
6.33pursuant to section 240.31, subdivision 1.
7.1(b) A distributor licensed under this section may sell, offer to sell, market, rent,
7.2lease, or otherwise provide, in whole or in part, a gambling device only to:
7.3(1) the governing body of a federally recognized Indian tribe that is authorized
7.4to operate the gambling device under a tribal state compact under the Indian Gaming
7.5Regulatory Act, Public Law 100-497, and future amendments to it;
7.6(2) a person for use in the person's dwelling for display or amusement purposes in a
7.7manner that does not afford players an opportunity to obtain anything of value;
7.8(3) another distributor licensed under this section; or
7.9(4) a person in another state who is authorized under the laws of that state to possess
7.10the gambling device; or
7.11(5) to a licensee authorized to conduct gambling activities pursuant to section
7.12240.31, subdivision 1.

7.13    Sec. 7. Minnesota Statutes 2008, section 340A.410, subdivision 5, is amended to read:
7.14    Subd. 5. Gambling prohibited. (a) Except as otherwise provided in this
7.15subdivision, no retail establishment licensed to sell alcoholic beverages may keep, possess,
7.16or operate, or permit the keeping, possession, or operation on the licensed premises of dice
7.17or any gambling device as defined in section 349.30, or permit gambling therein.
7.18(b) Gambling equipment may be kept or operated and raffles conducted on licensed
7.19premises and adjoining rooms when the use of the gambling equipment is authorized by
7.20(1) chapter 349, (2) a tribal ordinance in conformity with the Indian Gaming Regulatory
7.21Act, Public Law 100-497, or (3) a tribal-state compact authorized under section 3.9221.
7.22(c) Lottery tickets may be purchased and sold within the licensed premises as
7.23authorized by the director of the lottery under chapter 349A.
7.24(d) Dice may be kept and used on licensed premises and adjoining rooms as
7.25authorized by section 609.761, subdivision 4.
7.26(e) Gambling devices may be operated on the premises of a licensed racetrack as
7.27authorized by section 240.31, subdivision 1.

7.28    Sec. 8. Minnesota Statutes 2008, section 541.20, is amended to read:
7.30Every person who, by playing at cards, dice, or other game, or by betting on the hands
7.31or sides of such as are gambling, shall lose to any person so playing or betting any sum of
7.32money or any goods, and pays or delivers the same, or any part thereof, to the winner,
7.33may sue for and recover such money by a civil action, before any court of competent
7.34jurisdiction. For purposes of this section, gambling shall not include pari-mutuel or other
8.1wagering activity conducted under a license issued pursuant to chapter 240, purchase or
8.2sale of tickets in the state lottery, or gambling authorized under chapters 349 and 349A.

8.3    Sec. 9. Minnesota Statutes 2008, section 541.21, is amended to read:
8.5Every note, bill, bond, mortgage, or other security or conveyance in which the whole
8.6or any part of the consideration shall be for any money or goods won by gambling or
8.7playing at cards, dice, or any other game whatever, or by betting on the sides or hands
8.8of any person gambling, or for reimbursing or repaying any money knowingly lent or
8.9advanced at the time and place of such gambling or betting, or lent and advanced for any
8.10gambling or betting to any persons so gambling or betting, shall be void and of no effect
8.11as between the parties to the same, and as to all persons except such as hold or claim under
8.12them in good faith, without notice of the illegality of the consideration of such contract or
8.13conveyance. The provisions of this section shall not apply to: (1) pari-mutuel or other
8.14wagering activity conducted under a license issued pursuant to chapter 240; (2) purchase
8.15of tickets in the state lottery under chapter 349A; (3) gaming activities conducted pursuant
8.16to the Indian Gaming Regulatory Act, 25 U.S.C. 2701 et seq.; or (4) lawful gambling
8.17activities permitted under chapter 349."
8.18Amend the title accordingly