1.2relating to state government; allowing operations on an ongoing basis for the
1.3Racing Commission, Gambling Control Board, and State Lottery;amending
1.4Minnesota Statutes 2010, sections 240.15, subdivision 6; 240.155, subdivision 1;
1.5240.30, subdivision 9; 349.151, subdivision 4; 349A.10, by adding a subdivision.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7    Section 1. Minnesota Statutes 2010, section 240.15, subdivision 6, is amended to read:
1.8    Subd. 6. Disposition of proceeds; account. The commission shall distribute all
1.9money received under this section, and all money received from license fees and fines it
1.10collects, according to this subdivision. All money designated for deposit in the Minnesota
1.11breeders fund must be paid into that fund for distribution under section 240.18 except that
1.12all money generated by full racing card simulcasts must be distributed as provided in
1.13section 240.18, subdivisions 2, paragraph (d), clauses (1), (2), and (3); and 3. Revenue
1.14from an admissions tax imposed under subdivision 1 must be paid to the local unit of
1.15government at whose request it was imposed, at times and in a manner the commission
1.16determines. Taxes received under this section and fines collected under section 240.22
1.17must be paid to the commissioner of management and budget for deposit in the general
1.18fund. All revenues from licenses and other fees imposed by the commission must be
1.19deposited in the state treasury and credited to a racing and card playing regulation account
1.20in the special revenue fund. Receipts in this account are available for the operations of the
1.21commission up to the amount authorized in biennial appropriations from the legislature. If
1.22a fiscal biennium ends without the enactment of an appropriation to the commission for the
1.23following biennium, receipts in this account are annually appropriated to the commission
1.24for the operations of the commission up to the amount authorized in the second year of the
1.25most recently enacted biennial appropriation, until a biennial appropriation is enacted.

2.1    Sec. 2. Minnesota Statutes 2010, section 240.155, subdivision 1, is amended to read:
2.2    Subdivision 1. Reimbursement account credit. Money received by the commission
2.3as reimbursement for the costs of services provided by veterinarians, stewards, and
2.4medical testing of horses, and fees received by the commission in the form of fees for
2.5regulatory services must be deposited in the state treasury and credited to a racing
2.6reimbursement account in the special revenue fund, except as provided under subdivision
2.72. Receipts are appropriated, within the meaning of Article XI, section 1, of the Minnesota
2.8Constitution, to the commission to pay the costs of providing the services and all other
2.9costs necessary to allow the commission to fulfill its regulatory oversight duties required
2.10by chapter 240 and commission rule. If the major appropriation bills needed to finance
2.11state government are not enacted by the beginning of a fiscal biennium, the commission
2.12shall continue operations as required by chapter 240 and commission rule.

2.13    Sec. 3. Minnesota Statutes 2010, section 240.30, subdivision 9, is amended to read:
2.14    Subd. 9. Reimbursement to commission. The commission shall require that the
2.15licensee reimburse it for the commission's actual costs, including personnel costs, of
2.16regulating the card club. Amounts received under this subdivision must be deposited as
2.17provided in section 240.155, subdivision 1, and are appropriated to the commission.

2.18    Sec. 4. Minnesota Statutes 2010, section 349.151, subdivision 4, is amended to read:
2.19    Subd. 4. Powers and duties. (a) The board has the following powers and duties:
2.20(1) to regulate lawful gambling to ensure it is conducted in the public interest;
2.21(2) to issue licenses to organizations and gambling managers, and to issue licenses
2.22and renewals to distributors, distributor salespersons, manufacturers, and linked bingo
2.23game providers;
2.24(3) to collect and deposit fees due under this chapter;
2.25(4) to receive reports required by this chapter and inspect all premises, records,
2.26books, and other documents of organizations, distributors, manufacturers, and linked
2.27bingo game providers to insure compliance with all applicable laws and rules;
2.28(5) to make rules authorized by this chapter;
2.29(6) to register gambling equipment and issue registration stamps;
2.30(7) to provide by rule for the mandatory posting by organizations conducting lawful
2.31gambling of rules of play and the odds and/or house percentage on each form of lawful
2.32gambling;
2.33(8) to report annually to the governor and legislature on its activities and on
2.34recommended changes in the laws governing gambling;
3.1(9) to report annually to the governor and legislature a financial summary for each
3.2licensed organization identifying the gross receipts, prizes paid, allowable expenses,
3.3lawful purpose expenditures including charitable contributions and all taxes and fees as
3.4per section 349.12, subdivision 25, paragraph (a), clauses (8) and (18), and the percentage
3.5of annual gross profit used for lawful purposes;
3.6(10) to impose civil penalties of not more than $1,000 per violation on organizations,
3.7distributors, distributor salespersons, manufacturers, linked bingo game providers, and
3.8gambling managers for violating or failing to comply with any provision of this chapter,
3.9chapter 297E, or any rule or order of the board;
3.10(11) to issue premises permits to organizations licensed to conduct lawful gambling;
3.11(12) to delegate to the director the authority to issue or deny license and premises
3.12permit applications and renewals under criteria established by the board;
3.13(13) to delegate to the director the authority to approve or deny fund loss requests,
3.14contribution of gambling funds to another licensed organization, and property expenditure
3.15requests under criteria established by the board;
3.16(14) to suspend or revoke licenses and premises permits of organizations,
3.17distributors, distributor salespersons, manufacturers, linked bingo game providers, or
3.18gambling managers as provided in this chapter;
3.19(15) to approve or deny requests from licensees for:
3.20(i) waivers from fee requirements as provided in section 349.16, subdivision 6; and
3.21(ii) variances from Gambling Control Board rules under section 14.055; and
3.22(16) to register employees of organizations licensed to conduct lawful gambling;
3.23(17) to require fingerprints from persons determined by board rule to be subject to
3.24fingerprinting;
3.25(18) to delegate to a compliance review group of the board the authority to investigate
3.26alleged violations, issue consent orders, and initiate contested cases on behalf of the board;
3.27(19) to order organizations, distributors, distributor salespersons, manufacturers,
3.28linked bingo game providers, and gambling managers to take corrective actions; and
3.29(20) to take all necessary steps to ensure the integrity of and public confidence
3.30in lawful gambling.
3.31(b) The board, or director if authorized to act on behalf of the board, may by
3.32citation assess any organization, distributor, distributor salesperson, manufacturer, linked
3.33bingo game provider, or gambling manager a civil penalty of not more than $1,000 per
3.34violation for a failure to comply with any provision of this chapter, chapter 297E, or
3.35any rule adopted or order issued by the board. Any organization, distributor, distributor
3.36salesperson, gambling manager, linked bingo game provider, or manufacturer assessed
4.1a civil penalty under this paragraph may request a hearing before the board. Appeals of
4.2citations imposing a civil penalty are not subject to the provisions of the Administrative
4.3Procedure Act.
4.4(c) All penalties received by the board must be deposited in the general fund.
4.5(d) All fees imposed by the board under sections 349.16 to 349.167 must be
4.6deposited in the state treasury and credited to a lawful gambling regulation account in the
4.7special revenue fund. Receipts in this account are available for the operations of the board
4.8up to the amount authorized in biennial appropriations from the legislature. If a fiscal
4.9biennium ends without the enactment of an appropriation to the board for the following
4.10biennium, receipts in this account are annually appropriated to the board for the operations
4.11of the board up to the amount authorized in the second year of the most recently enacted
4.12biennial appropriation, until a biennial appropriation is enacted.

4.13    Sec. 5. Minnesota Statutes 2010, section 349A.10, is amended by adding a subdivision
4.14to read:
4.15    Subd. 8. Ongoing operations. The Minnesota Lottery shall conduct ongoing
4.16operations, and all funds available to the lottery under chapter 349A are appropriated to
4.17the lottery on a permanent and ongoing basis.
4.18EFFECTIVE DATE.This section is effective the day following final enactment.