1.1                          A bill for an act
  1.2             relating to lawful gambling; providing that a city's 
  1.3             trade area for purpose of limiting expenditures of net 
  1.4             profits may consist of all or part of the city's 
  1.5             school district; allowing cities and counties to adopt 
  1.6             reporting requirements; amending Minnesota Statutes 
  1.7             1994, section 349.213, subdivision 1. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1994, section 349.213, 
  1.10  subdivision 1, is amended to read: 
  1.11     Subdivision 1.  [LOCAL REGULATION.] (a) A statutory or home 
  1.12  rule city or county has the authority to adopt more stringent 
  1.13  regulation of lawful gambling within its jurisdiction, including 
  1.14  the prohibition of lawful gambling, and may require a permit for 
  1.15  the conduct of gambling exempt from licensing under section 
  1.16  349.166.  The fee for a permit issued under this subdivision may 
  1.17  not exceed $100.  The authority granted by this subdivision does 
  1.18  not include the authority to require a license or permit to 
  1.19  conduct gambling by organizations or sales by distributors 
  1.20  licensed by the board.  The authority granted by this 
  1.21  subdivision does not include the authority to require an 
  1.22  organization to make specific expenditures of more than ten 
  1.23  percent from its net profits derived from lawful gambling.  For 
  1.24  the purposes of this subdivision, net profits are gross profits 
  1.25  less amounts expended for allowable expenses and paid in taxes 
  1.26  assessed on lawful gambling.  A statutory or home rule charter 
  2.1   city or a county may not require an organization conducting 
  2.2   lawful gambling within its jurisdiction to make an expenditure 
  2.3   to the city or county as a condition to operate within that city 
  2.4   or county, except as authorized under section 349.16, 
  2.5   subdivision 8, or 297E.02; provided, however, that an ordinance 
  2.6   requirement that such organizations must contribute ten percent 
  2.7   of their net profits derived from lawful gambling conducted at 
  2.8   premises within the city's or county's jurisdiction to a fund 
  2.9   administered and regulated by the responsible local unit of 
  2.10  government without cost to such fund, for disbursement by the 
  2.11  responsible local unit of government of the receipts for lawful 
  2.12  purposes, is not considered an expenditure to the city or county 
  2.13  nor a tax under section 297E.02, and is valid and lawful.  
  2.14     (b) A statutory or home rule city or county may by 
  2.15  ordinance require that a licensed organization conducting lawful 
  2.16  gambling within its jurisdiction expend all or a portion of its 
  2.17  expenditures for lawful purposes on lawful purposes conducted or 
  2.18  located within the city's or county's trade area.  Such an 
  2.19  ordinance must be limited to lawful purpose expenditures of 
  2.20  gross profits derived from lawful gambling conducted at premises 
  2.21  within the city's or county's jurisdiction, must define the 
  2.22  city's or county's trade area, and must specify the percentage 
  2.23  of lawful purpose expenditures which must be expended within the 
  2.24  trade area.  A trade area defined by a city under this 
  2.25  subdivision:  (1) must include each city contiguous to the 
  2.26  defining city; and (2) may include all or part of any city that 
  2.27  lies within the same school district or districts of the 
  2.28  defining city. 
  2.29     (c) A more stringent regulation or prohibition of lawful 
  2.30  gambling adopted by a political subdivision under this 
  2.31  subdivision must apply equally to all forms of lawful gambling 
  2.32  within the jurisdiction of the political subdivision, except a 
  2.33  political subdivision may prohibit the use of paddlewheels. 
  2.34     (d) A city or county may by ordinance adopt reasonable 
  2.35  reporting requirements for an organization that holds a permit 
  2.36  for a premises within the city or county, for the purposes of 
  3.1   determining an organization's compliance with an ordinance 
  3.2   adopted under this section.  The reporting requirements 
  3.3   authorized under this paragraph are in addition to any other 
  3.4   reporting requirements imposed by law on the organization.