1.1                          A bill for an act 
  1.2             relating to gambling; eliminating obsolete references 
  1.3             to pari-mutuel teleracing; requiring licensing for 
  1.4             testing of gambling devices; providing for temporary 
  1.5             permits for display of gambling devices; regulating 
  1.6             lawful purpose expenditures; providing for 
  1.7             contributions for certain compulsive gambling 
  1.8             programs; amending Minnesota Statutes 1994, sections 
  1.9             240.01, subdivisions 18 and 23; 240.10; 240.19; 
  1.10            240.23; 240.27, subdivisions 2, 3, 4, and 5; 299L.01, 
  1.11            subdivision 1; 299L.03, subdivision 1; 299L.05; 
  1.12            299L.07, subdivisions 1, 2, 4, 5, 6, and by adding a 
  1.13            subdivision; and 349.12, subdivision 25; proposing 
  1.14            coding for new law in Minnesota Statutes, chapter 
  1.15            299L; repealing Minnesota Statutes 1994, section 
  1.16            240.01, subdivisions 17, 20, and 21. 
  1.17  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.18     Section 1.  Minnesota Statutes 1994, section 240.01, 
  1.19  subdivision 18, is amended to read: 
  1.20     Subd. 18.  [ON-TRACK PARI-MUTUEL BETTING.] "On-track 
  1.21  pari-mutuel betting" means wagering conducted at a licensed 
  1.22  racetrack, or at a class E licensed facility whose wagering 
  1.23  system is electronically linked to a licensed racetrack. 
  1.24     Sec. 2.  Minnesota Statutes 1994, section 240.01, 
  1.25  subdivision 23, is amended to read: 
  1.26     Subd. 23.  [FULL RACING CARD.] "Full racing card" means 
  1.27  three or more races that are:  (1) part of a horse racing 
  1.28  program being conducted at a racetrack; and (2) being simulcast 
  1.29  or telerace simulcast at a licensed racetrack or teleracing 
  1.30  facility. 
  1.31     Sec. 3.  Minnesota Statutes 1994, section 240.10, is 
  2.1   amended to read: 
  2.2      240.10 [LICENSE FEES.] 
  2.3      The fee for a class A license is $10,000 per year.  The fee 
  2.4   for a class B license is $100 for each assigned racing day on 
  2.5   which racing is actually conducted, and $50 for each day on 
  2.6   which simulcasting is authorized and actually takes place.  The 
  2.7   fee for a class D license is $50 for each assigned racing day on 
  2.8   which racing is actually conducted.  The fee for a class E 
  2.9   license is $1,000 per year.  Fees imposed on class B and class D 
  2.10  licenses must be paid to the commission at a time and in a 
  2.11  manner as provided by rule of the commission.  
  2.12     The commission shall by rule establish an annual license 
  2.13  fee for each occupation it licenses under section 240.08 but no 
  2.14  annual fee for a class C license may exceed $100.  
  2.15     License fee payments received must be paid by the 
  2.16  commission to the state treasurer for deposit in the general 
  2.17  fund. 
  2.18     Sec. 4.  Minnesota Statutes 1994, section 240.19, is 
  2.19  amended to read: 
  2.20     240.19 [CONTRACTS.] 
  2.21     The commission shall by rule require that all contracts 
  2.22  entered into by a class A, class B, or class D, or class E 
  2.23  licensee for the provision of goods or services, including 
  2.24  concessions contracts, be subject to commission approval.  The 
  2.25  rules must require that the contract include an affirmative 
  2.26  action plan establishing goals and timetables consistent with 
  2.27  the Minnesota Human Rights Act, chapter 363.  The rules may also 
  2.28  establish goals to provide economic opportunity for 
  2.29  disadvantaged and emerging small businesses, racial minorities, 
  2.30  women, and disabled individuals.  The commission may require a 
  2.31  contract holder to submit to it documents and records the 
  2.32  commission deems necessary to evaluate the contract.  
  2.33     Sec. 5.  Minnesota Statutes 1994, section 240.23, is 
  2.34  amended to read: 
  2.35     240.23 [RULEMAKING AUTHORITY.] 
  2.36     The commission has the authority, in addition to all other 
  3.1   rulemaking authority granted elsewhere in this chapter to 
  3.2   promulgate rules governing:  
  3.3      (a) the conduct of horse races held at licensed racetracks 
  3.4   in Minnesota, including but not limited to the rules of racing, 
  3.5   standards of entry, operation of claiming races, filing and 
  3.6   handling of objections, carrying of weights, and declaration of 
  3.7   official results; 
  3.8      (b) wire communications between the premises of a licensed 
  3.9   racetrack and any place outside the premises; 
  3.10     (c) information on horse races which is sold on the 
  3.11  premises of a licensed racetrack; 
  3.12     (d) liability insurance which it may require of all class 
  3.13  A, class B, and class D, and class E licensees; 
  3.14     (e) the auditing of the books and records of a licensee by 
  3.15  an auditor employed or appointed by the commission; 
  3.16     (f) emergency action plans maintained by licensed 
  3.17  racetracks and their periodic review; 
  3.18     (g) safety, security, and sanitation of stabling facilities 
  3.19  at licensed racetracks; 
  3.20     (h) entry fees and other funds received by a licensee in 
  3.21  the course of conducting racing which the commission determines 
  3.22  must be placed in escrow accounts; 
  3.23     (i) affirmative action in employment and contracting by 
  3.24  class A, class B, and class D licensees; and 
  3.25     (j) the operation of teleracing facilities; and 
  3.26     (k) any other aspect of horse racing or pari-mutuel betting 
  3.27  which in its opinion affects the integrity of racing or the 
  3.28  public health, welfare, or safety.  
  3.29     Rules of the commission are subject to chapter 14, the 
  3.30  Administrative Procedure Act. 
  3.31     Sec. 6.  Minnesota Statutes 1994, section 240.27, 
  3.32  subdivision 2, is amended to read: 
  3.33     Subd. 2.  [HEARING; APPEAL.] An order to exclude a person 
  3.34  from any or all licensed racetracks or licensed teleracing 
  3.35  facilities in the state must be made by the commission at a 
  3.36  public hearing of which the person to be excluded must have at 
  4.1   least five days' notice.  If present at the hearing, the person 
  4.2   must be permitted to show cause why the exclusion should not be 
  4.3   ordered.  An appeal of the order may be made in the same manner 
  4.4   as other appeals under section 240.20. 
  4.5      Sec. 7.  Minnesota Statutes 1994, section 240.27, 
  4.6   subdivision 3, is amended to read: 
  4.7      Subd. 3.  [NOTICE TO RACETRACKS.] Upon issuing an order 
  4.8   excluding a person from any or all licensed racetracks or 
  4.9   licensed teleracing facilities, the commission shall send a copy 
  4.10  of the order to the excluded person and to all racetracks or 
  4.11  teleracing facilities named in it, along with other information 
  4.12  as it deems necessary to permit compliance with the order.  
  4.13     Sec. 8.  Minnesota Statutes 1994, section 240.27, 
  4.14  subdivision 4, is amended to read: 
  4.15     Subd. 4.  [PROHIBITIONS.] It is a gross misdemeanor for a 
  4.16  person named in an exclusion order to enter, attempt to enter, 
  4.17  or be on the premises of a racetrack or a teleracing facility 
  4.18  named in the order while it is in effect, and for a person 
  4.19  licensed to conduct racing or operate a racetrack or a 
  4.20  teleracing facility knowingly to permit an excluded person to 
  4.21  enter or be on the premises.  
  4.22     Sec. 9.  Minnesota Statutes 1994, section 240.27, 
  4.23  subdivision 5, is amended to read: 
  4.24     Subd. 5.  [EXCLUSIONS BY RACETRACK.] The holder of a 
  4.25  license to conduct racing or operate a teleracing facility may 
  4.26  eject and exclude from its premises any licensee or any other 
  4.27  person who is in violation of any state law or commission rule 
  4.28  or order or who is a threat to racing integrity or the public 
  4.29  safety.  A person so excluded from racetrack premises or 
  4.30  teleracing facility may appeal the exclusion to the commission 
  4.31  and must be given a public hearing on the appeal upon request.  
  4.32  At the hearing the person must be given the opportunity to show 
  4.33  cause why the exclusion should not have been ordered.  If the 
  4.34  commission after the hearing finds that the integrity of racing 
  4.35  and the public safety do not justify the exclusion, it shall 
  4.36  order the racetrack or teleracing facility making the exclusion 
  5.1   to reinstate or readmit the person.  An appeal of a commission 
  5.2   order upholding the exclusion is governed by section 240.20. 
  5.3      Sec. 10.  Minnesota Statutes 1994, section 299L.01, 
  5.4   subdivision 1, is amended to read: 
  5.5      Subdivision 1.  [DEFINITIONS.] (a) For the purposes of this 
  5.6   chapter, the terms defined in this subdivision have the meanings 
  5.7   given them. 
  5.8      (b) "Division" means the division of gambling enforcement.  
  5.9      (c) "Commissioner" means the commissioner of public safety. 
  5.10     (d) "Director" means the director of gambling enforcement.  
  5.11     (e) "Manufacturer" means a person who assembles from raw 
  5.12  materials or subparts a gambling device for sale or use in 
  5.13  Minnesota. 
  5.14     (f) "Distributor" means a person who sells, offers to sell, 
  5.15  or otherwise provides a gambling device to a person in Minnesota.
  5.16     (g) "Used gambling device" means a gambling device five or 
  5.17  more years old from the date of manufacture. 
  5.18     (h) "Test" means the process of examining a gambling device 
  5.19  to determine its characteristics or compliance with the 
  5.20  established requirements of any jurisdiction. 
  5.21     (i) "Testing facility" means a person in Minnesota who is 
  5.22  engaged in the testing of gambling devices for use in any 
  5.23  jurisdiction. 
  5.24     Sec. 11.  Minnesota Statutes 1994, section 299L.03, 
  5.25  subdivision 1, is amended to read: 
  5.26     Subdivision 1.  [INSPECTIONS; ACCESS.] In conducting any 
  5.27  inspection authorized under this chapter or chapter 240, 349, or 
  5.28  349A, the employees of the division of gambling enforcement have 
  5.29  free and open access to all parts of the regulated business 
  5.30  premises, and may conduct the inspection at any reasonable time 
  5.31  without notice and without a search warrant.  For purposes of 
  5.32  this subdivision, "regulated business premises" means premises 
  5.33  where: 
  5.34     (1) lawful gambling is conducted by an organization 
  5.35  licensed under chapter 349 or by an organization exempt from 
  5.36  licensing under section 349.166; 
  6.1      (2) gambling equipment is manufactured, sold, distributed, 
  6.2   or serviced by a manufacturer or distributor licensed under 
  6.3   chapter 349; 
  6.4      (3) records required to be maintained under chapter 240, 
  6.5   297E, 349, or 349A are prepared or retained; 
  6.6      (4) lottery tickets are sold by a lottery retailer under 
  6.7   chapter 340A; 
  6.8      (5) races are conducted by a person licensed under chapter 
  6.9   240; or 
  6.10     (6) gambling devices are manufactured, or distributed, or 
  6.11  tested, including places of storage under section 299L.07. 
  6.12     Sec. 12.  Minnesota Statutes 1994, section 299L.05, is 
  6.13  amended to read: 
  6.14     299L.05 [GAMBLING VIOLATIONS; RESTRICTIONS ON FURTHER 
  6.15  ACTIVITY.] 
  6.16     An owner of an establishment is prohibited from having 
  6.17  lawful gambling under chapter 349 conducted on the premises, or 
  6.18  selling any lottery tickets under chapter 349A, or having a 
  6.19  video game of chance as defined under section 349.50 located on 
  6.20  the premises, if a person was convicted of violating section 
  6.21  609.76, subdivision 1, clause (7), or 609.76, subdivision (2), 
  6.22  for an activity occurring on the owner's premises. 
  6.23     Sec. 13.  Minnesota Statutes 1994, section 299L.07, 
  6.24  subdivision 1, is amended to read: 
  6.25     Subdivision 1.  [LICENSE REQUIRED.] Except as provided in 
  6.26  subdivision 2, a person may not (1) manufacture, sell, offer to 
  6.27  sell, lease, rent, or otherwise provide, in whole or in part, a 
  6.28  gambling device as defined in sections 349.30, subdivision 2, 
  6.29  and 609.75, subdivision 4, or (2) operate a testing facility, 
  6.30  without first obtaining a license under this section.  
  6.31     Sec. 14.  Minnesota Statutes 1994, section 299L.07, 
  6.32  subdivision 2, is amended to read: 
  6.33     Subd. 2.  [EXCLUSIONS.] Notwithstanding subdivision 1, a 
  6.34  gambling device: 
  6.35     (1) may be manufactured without a license as provided in 
  6.36  section 349.40; and 
  7.1      (2) may be sold by a person who is not licensed under this 
  7.2   section, if the person (i) is not engaged in the trade or 
  7.3   business of selling gambling devices, and (ii) does not sell 
  7.4   more than one gambling device in any calendar year; 
  7.5      (2) may be possessed by a person not licensed under this 
  7.6   section if the person holds a permit issued under section 19; 
  7.7   and 
  7.8      (3) may be possessed by a state agency, with the written 
  7.9   authorization of the director, for display or evaluation 
  7.10  purposes only and not for the conduct of gambling.  
  7.11     Sec. 15.  Minnesota Statutes 1994, section 299L.07, is 
  7.12  amended by adding a subdivision to read: 
  7.13     Subd. 2b.  [TESTING FACILITIES.] (a) A person licensed as a 
  7.14  testing facility may possess a gambling device only for the 
  7.15  purpose of performing tests on the gambling device. 
  7.16     (b) No person may be licensed as a testing facility under 
  7.17  this section who is licensed as a manufacturer or distributor of 
  7.18  gambling devices under this section or as a manufacturer or 
  7.19  distributor of gambling equipment under chapter 349. 
  7.20     Sec. 16.  Minnesota Statutes 1994, section 299L.07, 
  7.21  subdivision 4, is amended to read: 
  7.22     Subd. 4.  [APPLICATION.] An application for a 
  7.23  manufacturer's or distributor's license under this section must 
  7.24  be on a form prescribed by the commissioner and must, at a 
  7.25  minimum, contain: 
  7.26     (1) the name and address of the applicant and, if it is a 
  7.27  corporation, the names of all officers, directors, and 
  7.28  shareholders with a financial interest of five percent or more; 
  7.29     (2) the names and addresses of any holding corporation, 
  7.30  subsidiary, or affiliate of the applicant, without regard to 
  7.31  whether the holding corporation, subsidiary, or affiliate does 
  7.32  business in Minnesota; and 
  7.33     (3) if the applicant does not maintain a Minnesota office, 
  7.34  an irrevocable consent statement signed by the applicant, 
  7.35  stating that suits and actions relating to the subject matter of 
  7.36  the application or acts of omissions arising from it may be 
  8.1   commenced against the applicant in a court of competent 
  8.2   jurisdiction in this state by service on the secretary of state 
  8.3   of any summons, process, or pleadings authorized by the laws of 
  8.4   this state.  If any summons, process, or pleading is served upon 
  8.5   the secretary of state, it must be by duplicate copies.  One 
  8.6   copy must be retained in the office of the secretary of state 
  8.7   and the other copy must be forwarded immediately by certified 
  8.8   mail to the address of the applicant, as shown on the 
  8.9   application.  
  8.10     Sec. 17.  Minnesota Statutes 1994, section 299L.07, 
  8.11  subdivision 5, is amended to read: 
  8.12     Subd. 5.  [INVESTIGATION.] Before a manufacturer's or 
  8.13  distributor's license under this section is granted, the 
  8.14  director may conduct a background and financial investigation of 
  8.15  the applicant, including the applicant's sources of financing.  
  8.16  The director may, or shall when required by law, require that 
  8.17  fingerprints be taken and the director may forward the 
  8.18  fingerprints to the Federal Bureau of Investigation for a 
  8.19  national criminal history check.  The director may charge an 
  8.20  investigation fee to cover the cost of the investigation. 
  8.21     Sec. 18.  Minnesota Statutes 1994, section 299L.07, 
  8.22  subdivision 6, is amended to read: 
  8.23     Subd. 6.  [LICENSE FEES.] (a) A license issued under this 
  8.24  section is valid for one year. 
  8.25     (b) For a person who distributes 100 or fewer used gambling 
  8.26  devices per year, the fee is $1,500.  For a person who 
  8.27  distributes more than 100 used gambling devices per year, the 
  8.28  fee is $2,000.  
  8.29     (c) For a person who manufactures or distributes 100 or 
  8.30  fewer new, or new and used gambling devices in a year, the fee 
  8.31  is $5,000.  For a person who manufactures or distributes more 
  8.32  than 100 new, or new and used gambling devices in a year, the 
  8.33  fee is $7,500. 
  8.34     (d) For a testing facility the fee is $5,000. 
  8.35     Sec. 19.  [299L.08] [TEMPORARY POSSESSION; PERMIT.] 
  8.36     Subdivision 1.  [PERMIT AUTHORIZED.] The director may issue 
  9.1   a temporary permit for a person to possess a gambling device for 
  9.2   the purpose of displaying the gambling device at a trade show, 
  9.3   convention, or other event where gambling devices are displayed. 
  9.4      Subd. 2.  [APPLICATION; FEE.] An application for a 
  9.5   temporary permit under this section must contain: 
  9.6      (1) the applicant's name, address, and telephone number; 
  9.7      (2) the name, date, and location of the event where the 
  9.8   gambling device will be displayed; 
  9.9      (3) the method or methods by which the gambling device will 
  9.10  be transported to the event, including the name of all carriers 
  9.11  performing the transportation and the date of expected shipment; 
  9.12     (4) the individual or individuals who will be responsible 
  9.13  for the gambling device while it is in Minnesota; 
  9.14     (5) the type, make, model, and serial number of the device; 
  9.15     (6) the location where the device will be stored in 
  9.16  Minnesota while not at the event location; 
  9.17     (7) the date on which the device will be transported 
  9.18  outside Minnesota; 
  9.19     (8) evidence satisfactory to the director that the 
  9.20  applicant is registered and in compliance with 24 United States 
  9.21  Code, sections 1171 to 1178; and 
  9.22     (9) other information the director deems necessary. 
  9.23  The fee for a permit under this section is $100. 
  9.24     Subd. 3.  [TERMS.] A permit under this section authorizes 
  9.25  possession of a gambling device only during the period and for 
  9.26  the event named in the permit.  The permit authorizes the 
  9.27  possession of a gambling device for display, educational, and 
  9.28  information purposes only, and does not authorize the conduct of 
  9.29  any gambling.  The permit may not extend for more than 72 hours 
  9.30  beyond the end of the event named in the permit. 
  9.31     Subd. 4.  [INSPECTION.] The director may conduct 
  9.32  inspections of events where gambling devices are displayed to 
  9.33  insure compliance with this section and other laws relating to 
  9.34  gambling. 
  9.35     Sec. 20.  Minnesota Statutes 1994, section 349.12, 
  9.36  subdivision 25, is amended to read: 
 10.1      Subd. 25.  [LAWFUL PURPOSE.] (a) "Lawful purpose" means one 
 10.2   or more of the following:  
 10.3      (1) any expenditure by or contribution to a 501(c)(3) 
 10.4   organization, provided that the organization and expenditure or 
 10.5   contribution are in conformity with standards prescribed by the 
 10.6   board under section 349.154; 
 10.7      (2) a contribution to an individual or family suffering 
 10.8   from poverty, homelessness, or physical or mental disability, 
 10.9   which is used to relieve the effects of that poverty, 
 10.10  homelessness, or disability; 
 10.11     (3) a contribution to an individual for treatment for 
 10.12  delayed posttraumatic stress syndrome or a contribution to a 
 10.13  recognized program recognized by the Minnesota department of 
 10.14  human services for the education, prevention, or treatment of 
 10.15  compulsive gambling on behalf of an individual who is a 
 10.16  compulsive gambler; 
 10.17     (4) a contribution to or expenditure on a public or private 
 10.18  nonprofit educational institution registered with or accredited 
 10.19  by this state or any other state; 
 10.20     (5) a contribution to a scholarship fund for defraying the 
 10.21  cost of education to individuals where the funds are awarded 
 10.22  through an open and fair selection process; 
 10.23     (6) activities by an organization or a government entity 
 10.24  which recognize humanitarian or military service to the United 
 10.25  States, the state of Minnesota, or a community, subject to rules 
 10.26  of the board, provided that the rules must not include mileage 
 10.27  reimbursements in the computation of the per occasion 
 10.28  reimbursement limit and must impose no aggregate annual limit on 
 10.29  the amount of reasonable and necessary expenditures made to 
 10.30  support: 
 10.31     (i) members of a military marching or colorguard unit for 
 10.32  activities conducted within the state; or 
 10.33     (ii) members of an organization solely for services 
 10.34  performed by the members at funeral services; 
 10.35     (7) recreational, community, and athletic facilities and 
 10.36  activities intended primarily for persons under age 21, provided 
 11.1   that such facilities and activities do not discriminate on the 
 11.2   basis of gender and the organization complies with section 
 11.3   349.154; 
 11.4      (8) payment of local taxes authorized under this chapter, 
 11.5   taxes imposed by the United States on receipts from lawful 
 11.6   gambling, the taxes imposed by section 297E.02, subdivisions 1, 
 11.7   4, 5, and 6, and the tax imposed on unrelated business income by 
 11.8   section 290.05, subdivision 3; 
 11.9      (9) payment of real estate taxes and assessments on 
 11.10  permitted gambling premises wholly owned by the licensed 
 11.11  organization paying the taxes, not to exceed: 
 11.12     (i) the amount which an organization may expend under board 
 11.13  rule on rent for premises used for bingo; or 
 11.14     (ii) $15,000 per year for premises used for other forms of 
 11.15  lawful gambling; 
 11.16     (10) a contribution to the United States, this state or any 
 11.17  of its political subdivisions, or any agency or instrumentality 
 11.18  thereof other than a direct contribution to a law enforcement or 
 11.19  prosecutorial agency; 
 11.20     (11) a contribution to or expenditure by a nonprofit 
 11.21  organization which is a church or body of communicants gathered 
 11.22  in common membership for mutual support and edification in 
 11.23  piety, worship, or religious observances; 
 11.24     (12) payment of one-half of the reasonable costs of an 
 11.25  audit required in section 297E.06, subdivision 4; 
 11.26     (13) a contribution to or expenditure on a wildlife 
 11.27  management project that benefits the public at-large, provided 
 11.28  that the state agency with authority over that wildlife 
 11.29  management project approves the project before the contribution 
 11.30  or expenditure is made; or 
 11.31     (14) expenditures, approved by the commissioner of natural 
 11.32  resources, by an organization for grooming and maintaining 
 11.33  snowmobile trails that are (1) grant-in-aid trails established 
 11.34  under section 116J.406, or (2) other trails open to public use, 
 11.35  including purchase or lease of equipment for this purpose. 
 11.36     (b) Notwithstanding paragraph (a), "lawful purpose" does 
 12.1   not include: 
 12.2      (1) any expenditure made or incurred for the purpose of 
 12.3   influencing the nomination or election of a candidate for public 
 12.4   office or for the purpose of promoting or defeating a ballot 
 12.5   question; 
 12.6      (2) any activity intended to influence an election or a 
 12.7   governmental decision-making process; 
 12.8      (3) the erection, acquisition, improvement, expansion, 
 12.9   repair, or maintenance of real property or capital assets owned 
 12.10  or leased by an organization, unless the board has first 
 12.11  specifically authorized the expenditures after finding that (i) 
 12.12  the real property or capital assets will be used exclusively for 
 12.13  one or more of the purposes in paragraph (a); (ii) with respect 
 12.14  to expenditures for repair or maintenance only, that the 
 12.15  property is or will be used extensively as a meeting place or 
 12.16  event location by other nonprofit organizations or community or 
 12.17  service groups and that no rental fee is charged for the use; 
 12.18  (iii) with respect to expenditures, including a mortgage payment 
 12.19  or other debt service payment, for erection or acquisition only, 
 12.20  that the erection or acquisition is necessary to replace with a 
 12.21  comparable building, a building owned by the organization and 
 12.22  destroyed or made uninhabitable by fire or natural disaster, 
 12.23  provided that the expenditure may be only for that part of the 
 12.24  replacement cost not reimbursed by insurance; or (iv) with 
 12.25  respect to expenditures, including a mortgage payment or other 
 12.26  debt service payment, for erection or acquisition only, that the 
 12.27  erection or acquisition is necessary to replace with a 
 12.28  comparable building a building owned by the organization that 
 12.29  was acquired from the organization by eminent domain or sold by 
 12.30  the organization to a purchaser that the organization reasonably 
 12.31  believed would otherwise have acquired the building by eminent 
 12.32  domain, provided that the expenditure may be only for that part 
 12.33  of the replacement cost that exceeds the compensation received 
 12.34  by the organization for the building being replaced; 
 12.35     (4) an expenditure by an organization which is a 
 12.36  contribution to a parent organization, foundation, or affiliate 
 13.1   of the contributing organization, if the parent organization, 
 13.2   foundation, or affiliate has provided to the contributing 
 13.3   organization within one year of the contribution any money, 
 13.4   grants, property, or other thing of value; 
 13.5      (5) a contribution by a licensed organization to another 
 13.6   licensed organization unless the board has specifically 
 13.7   authorized the contribution.  The board must authorize such a 
 13.8   contribution when requested to do so by the contributing 
 13.9   organization unless it makes an affirmative finding that the 
 13.10  contribution will not be used by the recipient organization for 
 13.11  one or more of the purposes in paragraph (a); or 
 13.12     (6) a contribution to a statutory or home rule charter 
 13.13  city, county, or town by a licensed organization with the 
 13.14  knowledge that the governmental unit intends to use the 
 13.15  contribution for a pension or retirement fund. 
 13.16     Sec. 21.  [REPEALER.] 
 13.17     Minnesota Statutes 1994, section 240.01, subdivisions 17, 
 13.18  20, and 21, are repealed. 
 13.19     Sec. 22.  [EFFECTIVE DATE.] 
 13.20     Sections 19 and 20 are effective the day following final 
 13.21  enactment.