HF 2958

CCR--HF2958A - 87th Legislature (2011 - 2012)

Posted on 01/15/2013 08:26 p.m.

1.1CONFERENCE COMMITTEE REPORT ON H. F. No. 2958 1.2A bill for an act 1.3relating to finance; modifying the membership of the Legislative Advisory 1.4Commission; authorizing the Legislative Advisory Commission to review 1.5requests to spend federal money; limiting the authority to spend federal money 1.6without legislative review to certain emergency management purposes; providing 1.7for the validation of certain appropriation bonds; establishing an apprenticeship 1.8and on-the-job training program to administer a portion of the Minnesota GI Bill 1.9program; eliminating a surcharge on special veteran's plates for certain trucks; 1.10appropriating money for honor guards, soft body armor, and disaster deficiency; 1.11amending Minnesota Statutes 2010, sections 3.30, subdivision 2; 3.3005, 1.12subdivisions 2a, 4, 5, 6, by adding a subdivision; 12.22, subdivision 1; 116.03, 1.13subdivision 3; 197.791, subdivision 6, by adding a subdivision; Minnesota 1.14Statutes 2011 Supplement, sections 16A.96, by adding a subdivision; 168.123, 1.15subdivision 1. 1.16May 9, 2012 1.17The Honorable Kurt Zellers 1.18Speaker of the House of Representatives 1.19The Honorable Michelle L. Fischbach 1.20President of the Senate 1.21We, the undersigned conferees for H. F. No. 2958 report that we have agreed upon 1.22the items in dispute and recommend as follows: 1.23That the Senate recede from its amendments and that H. F. No. 2958 be further 1.24amended as follows: 1.25Delete everything after the enacting clause and insert: 1.26"ARTICLE 1 1.27MINNESOTA SPORTS FACILITIES AUTHORITY 1.28    Section 1. new text begin [3.8842] LEGISLATIVE COMMISSION ON MINNESOTA SPORTS new text end 1.29 new text begin FACILITIES. new text end 1.30     new text begin Subdivision 1. new text end new text begin Purpose. new text end new text begin The Legislative Commission on Minnesota Sports Facilities new text end 1.31 new text begin is established by and under the authority of the Legislative Coordinating Commission new text end 1.32 new text begin to oversee the Minnesota Sports Facilities Authority's operating and capital budgets. new text end 2.1 new text begin The legislature finds that continuous legislative review of the financial management of new text end 2.2 new text begin the authority is necessary to promote fiscal responsibility and good management, and new text end 2.3 new text begin strengthen the accountability of the authority. The commission is charged with: new text end 2.4 new text begin (1) providing financial oversight of the authority as described in subdivision 8; new text end 2.5 new text begin (2) adoption of a statewide authority structure for the operation and management new text end 2.6 new text begin of sports facilities and entertainment venues under the jurisdiction of the authority. The new text end 2.7 new text begin authority membership shall represent the interests of both the metropolitan area and new text end 2.8 new text begin greater Minnesota; and new text end 2.9 new text begin (3) creating a comprehensive management plan that alleviates booking and new text end 2.10 new text begin scheduling concerns regarding the sports facilities and entertainment venues under the new text end 2.11 new text begin jurisdiction of the authority. new text end 2.12     new text begin Subd. 2. new text end new text begin Membership. new text end new text begin The commission consists of three senators appointed by new text end 2.13 new text begin the senate majority leader, three senators appointed by the senate minority leader, three new text end 2.14 new text begin state representatives appointed by the speaker of the house, and three state representatives new text end 2.15 new text begin appointed by the house minority leader. The appointing authorities must ensure balanced new text end 2.16 new text begin geographic representation. Each appointing authority must make appointments as new text end 2.17 new text begin soon as possible after the opening of the next regular session of the legislature in each new text end 2.18 new text begin odd-numbered year. new text end 2.19     new text begin Subd. 3. new text end new text begin Terms; vacancies. new text end new text begin Members of the commission serve for a two-year term new text end 2.20 new text begin beginning upon appointment and expiring upon appointment of a successor after the new text end 2.21 new text begin opening of the next regular session of the legislature in the odd-numbered year. A vacancy new text end 2.22 new text begin in the membership of the commission must be filled for the unexpired term in a manner new text end 2.23 new text begin that will preserve the representation established by this section. new text end 2.24     new text begin Subd. 4. new text end new text begin Chair. new text end new text begin The commission must meet as soon as practicable after members new text end 2.25 new text begin are appointed in each odd-numbered year to elect its chair and other officers as it may new text end 2.26 new text begin determine necessary. A chair serves a two-year term, expiring in the odd-numbered year new text end 2.27 new text begin after a successor is elected. The chair must alternate biennially between the senate and the new text end 2.28 new text begin house of representatives. new text end 2.29     new text begin Subd. 5. new text end new text begin Compensation. new text end new text begin Members serve without compensation but may be new text end 2.30 new text begin reimbursed for their reasonable expenses as members of the legislature. new text end 2.31     new text begin Subd. 6. new text end new text begin Staff. new text end new text begin Legislative staff must provide administrative and research assistance new text end 2.32 new text begin to the commission. new text end 2.33     new text begin Subd. 7. new text end new text begin Meetings; procedures. new text end new text begin The commission meets at least semiannually. new text end 2.34 new text begin If there is a quorum, the commission may take action by a simple majority vote of new text end 2.35 new text begin commission members present. new text end 3.1     new text begin Subd. 8. new text end new text begin Powers; duties; Minnesota Sports Facilities Authority, budget new text end 3.2 new text begin oversight. new text end new text begin The commission must monitor, review, and make recommendations to the new text end 3.3 new text begin authority and to the legislature for the following calendar year on: new text end 3.4 new text begin (1) any proposed increases in the rate or dollar amount of tax; new text end 3.5 new text begin (2) any proposed increases in the debt of the authority; new text end 3.6 new text begin (3) the overall work and role of the authority; new text end 3.7 new text begin (4) the authority's proposed operating and capital budgets; new text end 3.8 new text begin (5) the authority's implementation of the operating and capital budgets; and new text end 3.9 new text begin (6) any other topics as deemed necessary by the commission to fulfill the purpose new text end 3.10 new text begin described in subdivision 1. new text end 3.11     new text begin Subd. 9. new text end new text begin Report. new text end new text begin The commission shall report on January 15 of the even-numbered new text end 3.12 new text begin year on the effectiveness and future prospects of the commission. new text end 3.13    Sec. 2. Minnesota Statutes 2010, section 3.971, subdivision 6, is amended to read: 3.14    Subd. 6. Financial audits. The legislative auditor shall audit the financial 3.15statements of the state of Minnesota required by section 16A.50 and, as resources permit, 3.16shall audit Minnesota State Colleges and Universities, the University of Minnesota, 3.17state agencies, departments, boards, commissions, courts, and other state organizations 3.18subject to audit by the legislative auditor, including the State Agricultural Society, 3.19Agricultural Utilization Research Institute, Enterprise Minnesota, Inc., Minnesota 3.20Historical Society, Labor Interpretive Center, Minnesota Partnership for Action Against 3.21Tobacco, Metropolitan Sports Facilities Commission, new text begin Minnesota Sports Facilities new text end 3.22 new text begin Authority, new text end Metropolitan Airports Commission, and Metropolitan Mosquito Control 3.23District. Financial audits must be conducted according to generally accepted government 3.24auditing standards. The legislative auditor shall see that all provisions of law respecting 3.25the appropriate and economic use of public funds are complied with and may, as part of a 3.26financial audit or separately, investigate allegations of noncompliance. 3.27    Sec. 3. Minnesota Statutes 2010, section 3.9741, is amended by adding a subdivision 3.28to read: 3.29     new text begin Subd. 4. new text end new text begin Minnesota Sports Facilities Authority. new text end new text begin Upon the audit of the financial new text end 3.30 new text begin accounts and affairs of the Minnesota Sports Facilities Authority, the authority is liable new text end 3.31 new text begin to the state for the total cost and expenses of the audit, including the salaries paid to the new text end 3.32 new text begin examiners while actually engaged in making the examination. The legislative auditor may new text end 3.33 new text begin bill the authority either monthly or at the completion of the audit. All collections received new text end 3.34 new text begin for the audits must be deposited in the general fund. new text end 4.1    Sec. 4. Minnesota Statutes 2011 Supplement, section 10A.01, subdivision 35, is 4.2amended to read: 4.3    Subd. 35. Public official. "Public official" means any: 4.4    (1) member of the legislature; 4.5    (2) individual employed by the legislature as secretary of the senate, legislative 4.6auditor, chief clerk of the house of representatives, revisor of statutes, or researcher, 4.7legislative analyst, or attorney in the Office of Senate Counsel and Research or House 4.8Research; 4.9    (3) constitutional officer in the executive branch and the officer's chief administrative 4.10deputy; 4.11    (4) solicitor general or deputy, assistant, or special assistant attorney general; 4.12    (5) commissioner, deputy commissioner, or assistant commissioner of any state 4.13department or agency as listed in section 15.01 or 15.06, or the state chief information 4.14officer; 4.15    (6) member, chief administrative officer, or deputy chief administrative officer of a 4.16state board or commission that has either the power to adopt, amend, or repeal rules under 4.17chapter 14, or the power to adjudicate contested cases or appeals under chapter 14; 4.18    (7) individual employed in the executive branch who is authorized to adopt, amend, 4.19or repeal rules under chapter 14 or adjudicate contested cases under chapter 14; 4.20    (8) executive director of the State Board of Investment; 4.21    (9) deputy of any official listed in clauses (7) and (8); 4.22    (10) judge of the Workers' Compensation Court of Appeals; 4.23    (11) administrative law judge or compensation judge in the State Office of 4.24Administrative Hearings or unemployment law judge in the Department of Employment 4.25and Economic Development; 4.26    (12) member, regional administrator, division director, general counsel, or operations 4.27manager of the Metropolitan Council; 4.28    (13) member or chief administrator of a metropolitan agency; 4.29    (14) director of the Division of Alcohol and Gambling Enforcement in the 4.30Department of Public Safety; 4.31    (15) member or executive director of the Higher Education Facilities Authority; 4.32    (16) member of the board of directors or president of Enterprise Minnesota, Inc.; 4.33    (17) member of the board of directors or executive director of the Minnesota State 4.34High School League; 4.35    (18) member of the Minnesota Ballpark Authority established in section 473.755; 4.36    (19) citizen member of the Legislative-Citizen Commission on Minnesota Resources; 5.1    (20) manager of a watershed district, or member of a watershed management 5.2organization as defined under section 103B.205, subdivision 13; 5.3    (21) supervisor of a soil and water conservation district; 5.4(22) director of Explore Minnesota Tourism; 5.5    (23) citizen member of the Lessard-Sams Outdoor Heritage Council established in 5.6section 97A.056; or 5.7(24) a citizen member of the Clean Water Council established in section 114D.30. new text begin ; or new text end 5.8 new text begin (25) member or chief executive of the Minnesota Sports Facilities Authority new text end 5.9 new text begin established in section 473J.07. new text end 5.10    Sec. 5. new text begin [16A.726] SPORTS FACILITIES TRANSFERS; APPROPRIATIONS. new text end 5.11     new text begin (a) If state appropriation bonds have not been issued under section 16A.965, amounts new text end 5.12 new text begin not to exceed the increased revenues estimated by the commissioner of management and new text end 5.13 new text begin budget under section 297E.021, subdivision 2, are appropriated from the general fund to new text end 5.14 new text begin the commissioner of management and budget to make transfers to the Minnesota Sports new text end 5.15 new text begin Facilities Authority for stadium costs as defined under section 473J.03, subdivision 8. new text end 5.16     new text begin (b) The commissioner shall make transfers to the Minnesota Sports Facilities new text end 5.17 new text begin Authority required to make the state payments under section 473J.13, subdivisions 2 and new text end 5.18 new text begin 4, and for the amount of Minneapolis taxes withheld under section 297A.994, subdivision new text end 5.19 new text begin 4, paragraph (a), clause (5). Amounts sufficient to make the transfers are appropriated to new text end 5.20 new text begin the commissioner from the general fund. new text end 5.21 new text begin (c) $2,700,000 is annually appropriated from the general fund from fiscal year 2014 new text end 5.22 new text begin through fiscal year 2033 to the commissioner of management and budget for a grant to the new text end 5.23 new text begin city of St. Paul for the operating or capital costs of new or existing sports facilities. new text end 5.24    Sec. 6. Minnesota Statutes 2010, section 297A.71, is amended by adding a subdivision 5.25to read: 5.26     new text begin Subd. 43. new text end new text begin Building materials; football stadium. new text end new text begin Materials and supplies used or new text end 5.27 new text begin consumed in, and equipment incorporated into, the construction or improvement of the new text end 5.28 new text begin football stadium and stadium infrastructure as defined in section 473J.03, subdivisions 8 new text end 5.29 new text begin and 10, are exempt. This subdivision expires one year after the date that the first National new text end 5.30 new text begin Football League game is played in the stadium for materials, supplies, and equipment new text end 5.31 new text begin used in the construction and equipping of the stadium, and five years after the issuance new text end 5.32 new text begin of the first bonds under section 16A.965 for materials, supplies, and equipment used in new text end 5.33 new text begin the public infrastructure. new text end 5.34 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 6.1    Sec. 7. Minnesota Statutes 2011 Supplement, section 340A.404, subdivision 1, is 6.2amended to read: 6.3    Subdivision 1. Cities. (a) A city may issue an on-sale intoxicating liquor license to 6.4the following establishments located within its jurisdiction: 6.5(1) hotels; 6.6(2) restaurants; 6.7(3) bowling centers; 6.8(4) clubs or congressionally chartered veterans organizations with the approval of 6.9the commissioner, provided that the organization has been in existence for at least three 6.10years and liquor sales will only be to members and bona fide guests, except that a club 6.11may permit the general public to participate in a wine tasting conducted at the club under 6.12section 340A.419; 6.13 new text begin (5) sports facilities, restaurants, clubs, or bars located on land owned or leased by new text end 6.14 new text begin the Minnesota Sports Facilities Authority; new text end 6.15(5) new text begin (6) new text end sports facilities located on land owned by the Metropolitan Sports 6.16Commission; and 6.17(6) new text begin (7) new text end exclusive liquor stores. 6.18(b) A city may issue an on-sale intoxicating liquor license, an on-sale wine license, 6.19or an on-sale malt liquor license to a theater within the city, notwithstanding any law, local 6.20ordinance, or charter provision. A license issued under this paragraph authorizes sales on 6.21all days of the week to persons attending events at the theater. 6.22(c) A city may issue an on-sale intoxicating liquor license, an on-sale wine license, 6.23or an on-sale malt liquor license to a convention center within the city, notwithstanding 6.24any law, local ordinance, or charter provision. A license issued under this paragraph 6.25authorizes sales on all days of the week to persons attending events at the convention 6.26center. This paragraph does not apply to convention centers located in the seven-county 6.27metropolitan area. 6.28(d) A city may issue an on-sale wine license and an on-sale malt liquor license to 6.29a person who is the owner of a summer collegiate league baseball team, or to a person 6.30holding a concessions or management contract with the owner, for beverage sales at a 6.31ballpark or stadium located within the city for the purposes of summer collegiate league 6.32baseball games at the ballpark or stadium, notwithstanding any law, local ordinance, or 6.33charter provision. A license issued under this paragraph authorizes sales on all days of the 6.34week to persons attending baseball games at the ballpark or stadium. 6.35    Sec. 8. Minnesota Statutes 2010, section 352.01, subdivision 2a, is amended to read: 7.1    Subd. 2a. Included employees. (a) "State employee" includes: 7.2    (1) employees of the Minnesota Historical Society; 7.3    (2) employees of the State Horticultural Society; 7.4    (3) employees of the Minnesota Crop Improvement Association; 7.5    (4) employees of the adjutant general whose salaries are paid from federal funds and 7.6who are not covered by any federal civilian employees retirement system; 7.7    (5) employees of the Minnesota State Colleges and Universities who are employed 7.8under the university or college activities program; 7.9    (6) currently contributing employees covered by the system who are temporarily 7.10employed by the legislature during a legislative session or any currently contributing 7.11employee employed for any special service as defined in subdivision 2b, clause (8); 7.12    (7) employees of the legislature who are appointed without a limit on the duration 7.13of their employment and persons employed or designated by the legislature or by a 7.14legislative committee or commission or other competent authority to conduct a special 7.15inquiry, investigation, examination, or installation; 7.16    (8) trainees who are employed on a full-time established training program 7.17performing the duties of the classified position for which they will be eligible to receive 7.18immediate appointment at the completion of the training period; 7.19    (9) employees of the Minnesota Safety Council; 7.20    (10) any employees who are on authorized leave of absence from the Transit 7.21Operating Division of the former Metropolitan Transit Commission and who are employed 7.22by the labor organization which is the exclusive bargaining agent representing employees 7.23of the Transit Operating Division; 7.24    (11) employees of the Metropolitan Council, Metropolitan Parks and Open Space 7.25Commission, Metropolitan Sports Facilities Commission, or Metropolitan Mosquito 7.26Control Commission unless excluded under subdivision 2b or are covered by another 7.27public pension fund or plan under section 473.415, subdivision 3; 7.28    (12) judges of the Tax Court; 7.29    (13) personnel who were employed on June 30, 1992, by the University of 7.30Minnesota in the management, operation, or maintenance of its heating plant facilities, 7.31whose employment transfers to an employer assuming operation of the heating plant 7.32facilities, so long as the person is employed at the University of Minnesota heating plant 7.33by that employer or by its successor organization; 7.34    (14) personnel who are employed as seasonal employees in the classified or 7.35unclassified service; 8.1    (15) persons who are employed by the Department of Commerce as a peace officer 8.2in the Insurance Fraud Prevention Division under section 45.0135 who have attained the 8.3mandatory retirement age specified in section 43A.34, subdivision 4; 8.4    (16) employees of the University of Minnesota unless excluded under subdivision 8.52b, clause (3); 8.6    (17) employees of the Middle Management Association whose employment began 8.7after July 1, 2007, and to whom section 352.029 does not apply; and 8.8    (18) employees of the Minnesota Government Engineers Council to whom section 8.9352.029 does not apply. new text begin ; and new text end 8.10 new text begin (19) employees of the Minnesota Sports Facilities Authority. new text end 8.11    (b) Employees specified in paragraph (a), clause (13), are included employees under 8.12paragraph (a) if employer and employee contributions are made in a timely manner in the 8.13amounts required by section 352.04. Employee contributions must be deducted from 8.14salary. Employer contributions are the sole obligation of the employer assuming operation 8.15of the University of Minnesota heating plant facilities or any successor organizations to 8.16that employer. 8.17    Sec. 9. new text begin [473J.01] PURPOSE. new text end 8.18 new text begin The purpose of this chapter is to provide for the construction, financing, and new text end 8.19 new text begin long-term use of a stadium and related stadium infrastructure as a venue for professional new text end 8.20 new text begin football and a broad range of other civic, community, athletic, educational, cultural, new text end 8.21 new text begin and commercial activities. The legislature finds and declares that the expenditure of new text end 8.22 new text begin public money for this purpose is necessary and serves a public purpose, and that property new text end 8.23 new text begin acquired by the Minnesota Sports Facilities Authority for the construction of the stadium new text end 8.24 new text begin and related stadium infrastructure is acquired for a public use or public purpose under new text end 8.25 new text begin chapter 117. The legislature further finds and declares that any provision in a lease or use new text end 8.26 new text begin agreement with a professional football team that requires the team to play all of its home new text end 8.27 new text begin games in a publicly funded stadium for the duration of the lease or use agreement, serves new text end 8.28 new text begin a unique public purpose for which the remedies of specific performance and injunctive new text end 8.29 new text begin relief are essential to its enforcement. The legislature further finds and declares that new text end 8.30 new text begin government assistance to facilitate the presence of professional football provides to the new text end 8.31 new text begin state of Minnesota and its citizens highly valued intangible benefits that are virtually new text end 8.32 new text begin impossible to quantify and, therefore, not recoverable even if the government receives new text end 8.33 new text begin monetary damages in the event of a team's breach of contract. Minnesota courts are, new text end 8.34 new text begin therefore, charged with protecting those benefits through the use of specific performance new text end 8.35 new text begin and injunctive relief as provided in this chapter and in the lease and use agreements. new text end 9.1    Sec. 10. new text begin [473J.03] DEFINITIONS. new text end 9.2     new text begin Subdivision 1. new text end new text begin Application. new text end new text begin For the purposes of this chapter, the terms defined in new text end 9.3 new text begin this section have the meanings given them, except as otherwise expressly provided or new text end 9.4 new text begin indicated by the context. new text end 9.5     new text begin Subd. 2. new text end new text begin Annual adjustment factor. new text end new text begin "Annual adjustment factor" means for any new text end 9.6 new text begin year, the increase, if any, in the amounts of the city of Minneapolis taxes, imposed under a new text end 9.7 new text begin special law originally enacted in 1986, that are received by the commissioner of revenue new text end 9.8 new text begin in the preceding year over the amount received in the year prior to the preceding year, new text end 9.9 new text begin expressed as a percentage of the amount received in the year prior to the preceding year; new text end 9.10 new text begin provided that the adjustment factor for any year must not be less than zero percent nor new text end 9.11 new text begin more than five percent. new text end 9.12     new text begin Subd. 3. new text end new text begin Authority. new text end new text begin "Authority" means the Minnesota Sports Facilities Authority new text end 9.13 new text begin established under section 473J.07. new text end 9.14     new text begin Subd. 4. new text end new text begin City. new text end new text begin "City" means the city of Minneapolis. new text end 9.15     new text begin Subd. 5. new text end new text begin Net actual taxes. new text end new text begin "Net actual taxes" means the amount of revenues new text end 9.16 new text begin collected from the taxes in that year minus any refunds and costs of collection. new text end 9.17     new text begin Subd. 6. new text end new text begin NFL. new text end new text begin The "NFL" means the National Football League. new text end 9.18     new text begin Subd. 7. new text end new text begin NFL team. new text end new text begin "NFL team" means the owner and operator of the NFL new text end 9.19 new text begin professional football team known, as of the effective date of this chapter, as the Minnesota new text end 9.20 new text begin Vikings or any team owned and operated by someone who purchases or otherwise takes new text end 9.21 new text begin ownership or control of or reconstitutes the NFL team known as the Minnesota Vikings. new text end 9.22     new text begin Subd. 8. new text end new text begin Stadium. new text end new text begin "Stadium" means the stadium suitable for professional football new text end 9.23 new text begin to be designed, constructed, and financed under this chapter. A stadium must have a roof new text end 9.24 new text begin that covers the stadium, as set forth in section 473J.11, subdivision 3. new text end 9.25     new text begin Subd. 9. new text end new text begin Stadium costs. new text end new text begin "Stadium costs" means the costs of acquiring land, the new text end 9.26 new text begin costs of stadium infrastructure, and of designing, constructing, equipping, and financing a new text end 9.27 new text begin stadium suitable for professional football. new text end 9.28     new text begin Subd. 10. new text end new text begin Stadium infrastructure. new text end new text begin "Stadium infrastructure" means plazas, parking new text end 9.29 new text begin structures, rights of way, connectors, skyways and tunnels, and other such property, new text end 9.30 new text begin facilities, and improvements, owned by the authority or determined by the authority to new text end 9.31 new text begin facilitate the use and development of the stadium. new text end 9.32     new text begin Subd. 11. new text end new text begin Stadium plaza. new text end new text begin "Stadium plaza" means the open air portion of the new text end 9.33 new text begin stadium adjacent to the stadium. new text end 9.34     new text begin Subd. 12. new text end new text begin Stadium site. new text end new text begin "Stadium site" means all or portions of the current site of new text end 9.35 new text begin the existing football stadium and adjacent areas, bounded generally by Park and Eleventh new text end 10.1 new text begin Avenues and Third and Sixth Streets in the city of Minneapolis, the definitive boundaries new text end 10.2 new text begin of which shall be determined by the authority and agreed to by the NFL team. new text end 10.3    Sec. 11. new text begin [473J.07] MINNESOTA SPORTS FACILITIES AUTHORITY. new text end 10.4     new text begin Subdivision 1. new text end new text begin Established. new text end new text begin The Minnesota Sports Facilities Authority is new text end 10.5 new text begin established as a public body, corporate and politic, and political subdivision of the state. new text end 10.6 new text begin The authority is not a joint powers entity or an agency or instrumentality of the city. new text end 10.7     new text begin Subd. 2. new text end new text begin Membership. new text end new text begin (a) The authority shall consist of five members. new text end 10.8 new text begin (b) The chair and two members shall be appointed by the governor. One member new text end 10.9 new text begin appointed by the governor shall serve until December 31 of the third year following new text end 10.10 new text begin appointment and one member shall serve until December 31 of the fourth year following new text end 10.11 new text begin appointment. Thereafter, members appointed by the governor shall serve four-year terms, new text end 10.12 new text begin beginning January 1. Each member serves until a successor is appointed and takes office. new text end 10.13 new text begin The chair serves at the pleasure of the governor. new text end 10.14 new text begin (c) The mayor of the city shall appoint two members to the authority. One member new text end 10.15 new text begin appointed by the mayor of the city shall serve until December 31 of the third year new text end 10.16 new text begin following appointment and one member shall serve until December 31 of the fourth year new text end 10.17 new text begin following appointment. Thereafter, members appointed under this paragraph shall serve new text end 10.18 new text begin four-year terms beginning January 1. Each member serves until a successor is appointed new text end 10.19 new text begin and takes office. Members appointed under this paragraph may reside within the city and new text end 10.20 new text begin may be appointed officials of a political subdivision. new text end 10.21 new text begin (d) The initial members of the authority must be appointed not later than 30 days new text end 10.22 new text begin after the date of enactment of this chapter. new text end 10.23     new text begin Subd. 3. new text end new text begin Compensation. new text end new text begin The authority may compensate its members, other than the new text end 10.24 new text begin chair, as provided in section 15.0575. The chair shall receive, unless otherwise provided new text end 10.25 new text begin by other law, a salary in an amount fixed by the authority, and shall be reimbursed for new text end 10.26 new text begin reasonable expenses to the same extent as a member. new text end 10.27     new text begin Subd. 4. new text end new text begin Chair. new text end new text begin The chair presides at all meetings of the authority, if present, and new text end 10.28 new text begin performs all other assigned duties and functions. The authority may appoint from among new text end 10.29 new text begin its members a vice-chair to act for the chair during the temporary absence or disability of new text end 10.30 new text begin the chair, and any other officers the authority determines are necessary or convenient. new text end 10.31     new text begin Subd. 5. new text end new text begin Removal. new text end new text begin A member, other than the chair, may be removed by the new text end 10.32 new text begin appointing authority only for misfeasance, malfeasance, or nonfeasance in office, upon new text end 10.33 new text begin written charges, and after an opportunity to be heard in defense of the charges. new text end 10.34     new text begin Subd. 6. new text end new text begin Bylaws. new text end new text begin The authority shall adopt bylaws to establish rules of procedure, new text end 10.35 new text begin the powers and duties of its officers, and other matters relating to the governance of the new text end 11.1 new text begin authority and the exercise of its powers. Except as provided in this section, the bylaws new text end 11.2 new text begin adopted under this subdivision must be similar in form and substance to bylaws adopted new text end 11.3 new text begin by the Minnesota Ballpark Authority pursuant to section 473.755. new text end 11.4     new text begin Subd. 7. new text end new text begin Audit. new text end new text begin The legislative auditor shall audit the books and accounts of the new text end 11.5 new text begin authority once each year or as often as the legislative auditor's funds and personnel permit. new text end 11.6 new text begin The authority shall pay the total cost of the audit pursuant to section 3.9741. new text end 11.7     new text begin Subd. 8. new text end new text begin Executive director; employees. new text end new text begin The authority may appoint an executive new text end 11.8 new text begin director to serve as the chief executive officer of the authority. The executive director new text end 11.9 new text begin serves at the pleasure of the authority and receives compensation as determined by the new text end 11.10 new text begin authority. The executive director may be responsible for the operation, management, and new text end 11.11 new text begin promotion of activities of the authority, as prescribed by the authority. The executive new text end 11.12 new text begin director has the powers necessarily incident to the performance of duties required and new text end 11.13 new text begin powers granted by the authority, but does not have authority to incur liability or make new text end 11.14 new text begin expenditures on behalf of the authority without general or specific directions by the new text end 11.15 new text begin authority, as shown by the bylaws or minutes of a meeting of the authority. The executive new text end 11.16 new text begin director is responsible for hiring, supervision, and dismissal of all other employees of new text end 11.17 new text begin the authority. new text end 11.18     new text begin Subd. 9. new text end new text begin Web site. new text end new text begin The authority shall establish a Web site for purposes of providing new text end 11.19 new text begin information to the public concerning all actions taken by the authority. At a minimum, the new text end 11.20 new text begin Web site must contain a current version of the authority's bylaws, notices of upcoming new text end 11.21 new text begin meetings, minutes of the authority's meetings, and contact telephone, electronic mail, and new text end 11.22 new text begin facsimile numbers for public comments. new text end 11.23     new text begin Subd. 10. new text end new text begin Quorum; approvals. new text end new text begin Any three members shall constitute a quorum for new text end 11.24 new text begin the conduct of business and action may be taken upon the vote of a majority of members new text end 11.25 new text begin present at a meeting duly called and held. During the design and construction stages of the new text end 11.26 new text begin stadium, a four-fifths vote of the authority is required for authority decisions related to new text end 11.27 new text begin zoning, land use, exterior design of the stadium, related parking, the plaza area, and the new text end 11.28 new text begin selection of the authority's lead representative during design and construction. new text end 11.29    Sec. 12. new text begin [473J.075] SPORTS FACILITIES OF THE AUTHORITY. new text end 11.30     new text begin Subdivision 1. new text end new text begin General. new text end new text begin This section describes the sports facilities that the new text end 11.31 new text begin Minnesota Sports Facilities Authority controls, operates, and has responsibility over new text end 11.32 new text begin pursuant to this chapter and as directed by law. new text end 11.33     new text begin Subd. 2. new text end new text begin Sports facilities. new text end new text begin (a) The following sports facilities are part of the new text end 11.34 new text begin Minnesota Sports Facilities Authority: new text end 11.35 new text begin (1) the professional football stadium constructed under this chapter; and new text end 12.1 new text begin (2) any other sports facility constructed or acquired by the authority. new text end 12.2 new text begin (b) The Target Center in Minneapolis, Xcel Energy Center in St. Paul, and Target new text end 12.3 new text begin Field in Minneapolis may join the facilities of the authority upon satisfaction of the new text end 12.4 new text begin following factors and upon the approval of the authority: new text end 12.5 new text begin (1) the governing body of the facility must make the request to the authority to new text end 12.6 new text begin become a sports facility under this section; new text end 12.7 new text begin (2) the governing body and the authority must negotiate an agreement with respect to new text end 12.8 new text begin the transfer of all obligations and responsibilities, including, but not limited to, outstanding new text end 12.9 new text begin debt, revenue sources, finance, funding, operations, equipment, repair and replacements, new text end 12.10 new text begin capital improvements, reserves, contracts, and agreements; new text end 12.11 new text begin (3) the governing body and the professional sports team who is the primary user of new text end 12.12 new text begin the facility must make a joint recommendation to the authority; new text end 12.13 new text begin (4) the authority must find that the inclusion of a facility under the authority will not new text end 12.14 new text begin have a negative impact on the authority, the general fund, or become an obligation of the new text end 12.15 new text begin state of Minnesota; and new text end 12.16 new text begin (5) any other information or requirements requested by the authority. new text end 12.17    Sec. 13. new text begin [473J.09] POWERS, DUTIES OF THE AUTHORITY. new text end 12.18     new text begin Subdivision 1. new text end new text begin Actions. new text end new text begin The authority may sue and be sued. The authority is a public new text end 12.19 new text begin body and the stadium and stadium infrastructure are public improvements within the new text end 12.20 new text begin meaning of chapter 562. The authority is a municipality within the meaning of chapter 466. new text end 12.21     new text begin Subd. 2. new text end new text begin Acquisition of property. new text end new text begin The authority may acquire from any public or new text end 12.22 new text begin private entity by lease, purchase, gift, or devise all necessary right, title, and interest in new text end 12.23 new text begin and to real property, air rights, and personal property deemed necessary to the purposes new text end 12.24 new text begin contemplated by this chapter. The authority may acquire, by the exercise of condemnation new text end 12.25 new text begin powers under chapter 117, land, other real property, air rights, personal property, and other new text end 12.26 new text begin right, title, and interest in property, within the stadium site and stadium infrastructure. new text end 12.27     new text begin Subd. 3. new text end new text begin Disposition of property. new text end new text begin The authority may sell, lease, or otherwise new text end 12.28 new text begin dispose of any real or personal property acquired by the authority that is no longer required new text end 12.29 new text begin for accomplishment of the authority's purposes. The property may be sold in accordance new text end 12.30 new text begin with the procedures provided by section 469.065, except subdivisions 6 and 7, to the new text end 12.31 new text begin extent the authority deems it to be practical and consistent with this chapter. Title to the new text end 12.32 new text begin stadium must not be transferred or sold by the authority prior to the effective date of new text end 12.33 new text begin enactment of any legislation approving such transfer or sale. new text end 12.34     new text begin Subd. 4. new text end new text begin Data practices; open meetings. new text end new text begin Except as otherwise provided in this new text end 12.35 new text begin chapter, the authority is subject to chapters 13 and 13D. new text end 13.1     new text begin Subd. 5. new text end new text begin Facility operation. new text end new text begin The authority may develop, construct, equip, improve, new text end 13.2 new text begin own, operate, manage, maintain, finance, and control the stadium, stadium infrastructure, new text end 13.3 new text begin and related facilities constructed or acquired under this chapter, or may delegate such new text end 13.4 new text begin duties through an agreement, subject to the rights and obligations transferred to and new text end 13.5 new text begin assumed by the authority, the NFL team, other user, third-party manager, or program new text end 13.6 new text begin manager, under the terms of a lease, use agreement, or development agreement. new text end 13.7     new text begin Subd. 6. new text end new text begin Employees; contracts for services. new text end new text begin The authority may employ persons new text end 13.8 new text begin and contract for services necessary to carry out its functions, including the utilization of new text end 13.9 new text begin employees and consultants retained by other governmental entities. The authority shall new text end 13.10 new text begin enter into an agreement with the city regarding traffic control for the stadium. new text end 13.11     new text begin Subd. 7. new text end new text begin Gifts, grants, loans. new text end new text begin The authority may accept monetary contributions, new text end 13.12 new text begin property, services, and grants or loans of money or other property from the United States, new text end 13.13 new text begin the state, any subdivision of the state, any agency of those entities, or any person for any new text end 13.14 new text begin of its purposes, and may enter into any agreement required in connection with the gifts, new text end 13.15 new text begin grants, or loans. The authority shall hold, use, and dispose of the money, property, or new text end 13.16 new text begin services according to the terms of the monetary contributions, grant, loan, or agreement. new text end 13.17     new text begin Subd. 8. new text end new text begin Use agreements. new text end new text begin The authority may lease, license, or enter into use new text end 13.18 new text begin agreements and may fix, alter, charge, and collect rents, fees, and charges for the use, new text end 13.19 new text begin occupation, and availability of part or all of any premises, property, or facilities under new text end 13.20 new text begin its ownership, operation, or control for purposes that will provide athletic, educational, new text end 13.21 new text begin cultural, commercial, or other entertainment, instruction, or activity for the citizens of new text end 13.22 new text begin Minnesota and visitors. The use agreements may provide that the other contracting party new text end 13.23 new text begin has exclusive use of the premises at the times agreed upon, as well as the right to retain new text end 13.24 new text begin some or all revenues from ticket sales, suite licenses, concessions, advertising, naming new text end 13.25 new text begin rights, NFL team designated broadcast/media, club seats, signage, and other revenues new text end 13.26 new text begin derived from the stadium. The lease or use agreement with an NFL team must provide for new text end 13.27 new text begin the payment by the NFL team of an agreed-upon portion of operating and maintenance new text end 13.28 new text begin costs and expenses and provide other terms in which the authority and NFL team agree. In new text end 13.29 new text begin no case may a lease or use agreement permit smoking in the stadium. new text end 13.30     new text begin Subd. 9. new text end new text begin Research. new text end new text begin The authority may conduct research studies and programs; new text end 13.31 new text begin collect and analyze data; prepare reports, maps, charts, and tables; and conduct all new text end 13.32 new text begin necessary hearings and investigations in connection with its functions. new text end 13.33     new text begin Subd. 10. new text end new text begin Insurance. new text end new text begin The authority may require any employee to obtain and file new text end 13.34 new text begin with the authority an individual bond or fidelity insurance policy. The authority may new text end 13.35 new text begin procure insurance in the amounts the authority considers necessary against liability of the new text end 13.36 new text begin authority or its officers and employees for personal injury or death and property damage or new text end 14.1 new text begin destruction, consistent with chapter 466, and against risks of damage to or destruction of new text end 14.2 new text begin any of its facilities, equipment, or other property. new text end 14.3     new text begin Subd. 11. new text end new text begin Exemption from Metropolitan Council review; Business Subsidy Act. new text end 14.4 new text begin The acquisition and betterment of a stadium and stadium infrastructure by the authority new text end 14.5 new text begin must be conducted pursuant to this chapter and are not subject to sections 473.165 and new text end 14.6 new text begin 473.173. Section 116J.994 does not apply to any transactions of the authority or other new text end 14.7 new text begin governmental entity related to the stadium or stadium infrastructure or to any tenant or new text end 14.8 new text begin other users of the stadium or stadium infrastructure. new text end 14.9     new text begin Subd. 12. new text end new text begin Incidental powers. new text end new text begin In addition to the powers expressly granted in this new text end 14.10 new text begin chapter, the authority has all powers necessary or incidental thereto. new text end 14.11     new text begin Subd. 13. new text end new text begin Legislative report. new text end new text begin The authority must report to the chairs and ranking new text end 14.12 new text begin minority members of the legislative committees with jurisdiction over state government new text end 14.13 new text begin finance by January 15 of each year on the following: new text end 14.14 new text begin (a) any recommended increases in the rate or dollar amount of tax; new text end 14.15 new text begin (b) any recommended increases in the debt of the authority; new text end 14.16 new text begin (c) the overall work and role of the authority; new text end 14.17 new text begin (d) the authority's proposed operating and capital budgets; and new text end 14.18 new text begin (e) the authority's implementation of the operating and capital budgets. new text end 14.19     new text begin Subd. 14. new text end new text begin Study; raffle. new text end new text begin The authority shall study the feasibility of conducting a new text end 14.20 new text begin raffle for chances to win a pair or other limited numbers of prime seats (such as lower new text end 14.21 new text begin deck, 50 yard line seats) in the stadium for professional football games for the duration of new text end 14.22 new text begin the lease or use agreement. In conducting the study, the authority must consult with the new text end 14.23 new text begin NFL team. If the authority determines that conducting the raffle is financially feasible, new text end 14.24 new text begin the authority in cooperation with the director of the Gambling Control Board shall new text end 14.25 new text begin conduct the raffle. The proceeds of the raffle must be transmitted to the commissioner new text end 14.26 new text begin of revenue for deposit in the general fund and are appropriated to the commissioner of new text end 14.27 new text begin management and budget for prepayment of principal and interest on appropriation bonds new text end 14.28 new text begin under section 16A.965. new text end 14.29    Sec. 14. new text begin [473J.10] LOCATION. new text end 14.30 new text begin The stadium to be constructed under this chapter shall be located at the stadium new text end 14.31 new text begin site in the city of Minneapolis. new text end 14.32    Sec. 15. new text begin [473J.11] STADIUM DESIGN AND CONSTRUCTION. new text end 14.33     new text begin Subdivision 1. new text end new text begin Contracts. new text end new text begin (a) The design, development, and construction of the new text end 14.34 new text begin stadium shall be a collaborative process between the authority and the NFL team. The new text end 15.1 new text begin authority and the NFL team shall establish a process to reach consensus on key elements new text end 15.2 new text begin of the stadium program and design, development, and construction. new text end 15.3 new text begin (b) Unless the authority and the NFL team agree otherwise: new text end 15.4 new text begin (1) the authority shall create a stadium design and construction group, including new text end 15.5 new text begin representatives of the authority and the NFL team, to manage the design of the stadium new text end 15.6 new text begin and oversee construction; new text end 15.7 new text begin (2) this group shall engage an owner's representative to act on behalf of the group. new text end 15.8 new text begin The cost of the owner's representative shall be a stadium cost; and new text end 15.9 new text begin (3) the authority and the NFL team shall enter into a development administration new text end 15.10 new text begin agreement providing for rights and responsibilities of the authority and the NFL team, the new text end 15.11 new text begin design and construction group, and the owner's representative for design and construction new text end 15.12 new text begin of the stadium, including, but not limited to, establishment of minimum design standards. new text end 15.13 new text begin This development administration agreement shall provide for binding arbitration in new text end 15.14 new text begin the event that the authority and the NFL team are unable to agree on minimum design new text end 15.15 new text begin standards or other material aspects of the design. new text end 15.16 new text begin (c) The authority may enter into an agreement with the NFL team and any other new text end 15.17 new text begin entity relating to the design, construction, financing, operation, maintenance, and use of new text end 15.18 new text begin the stadium and related facilities and stadium infrastructure. The authority may contract new text end 15.19 new text begin for materials, supplies, and equipment in accordance with section 471.345, except that new text end 15.20 new text begin the authority may employ or contract with persons, firms, or corporations to perform one new text end 15.21 new text begin or more or all of the functions of architect, engineer, construction manager, or program new text end 15.22 new text begin manager with respect to all or any part of the design, construction, financing, operation, new text end 15.23 new text begin maintenance, and use of the stadium and stadium infrastructure under the traditional new text end 15.24 new text begin separate design and build, integrated design-build, construction manager at risk, or new text end 15.25 new text begin public/private partnership (P3) structures, or a combination thereof. new text end 15.26 new text begin To the extent practicable, the agreement must provide that at least 25 percent of the new text end 15.27 new text begin materials, supplies, and equipment used in the construction, operation, maintenance, and new text end 15.28 new text begin use of the stadium and related facilities and stadium infrastructure, other than the material new text end 15.29 new text begin subject to section 473J.15, subdivision 11, paragraph (c), must be made or produced new text end 15.30 new text begin by Minnesota businesses. new text end 15.31 new text begin (d) The authority and the NFL team shall prepare a request for proposals for one or new text end 15.32 new text begin more of the functions described in paragraph (c). The request must be published in the new text end 15.33 new text begin State Register and shall include, at a minimum, such requirements that are agreed to by new text end 15.34 new text begin the authority and the NFL team. The authority and the NFL team may prequalify offerors new text end 15.35 new text begin by issuing a request for qualifications, in advance of the request for proposals, and select a new text end 15.36 new text begin short list of responsible offerors prior to discussions and evaluations. new text end 16.1 new text begin (e) As provided in the request for proposals, the authority, and the NFL team, may new text end 16.2 new text begin conduct discussions and negotiations with responsible offerors in order to determine new text end 16.3 new text begin which proposal is most advantageous to the authority and the NFL team and to negotiate new text end 16.4 new text begin the terms of an agreement. In conducting discussions, there shall be no disclosure of any new text end 16.5 new text begin information derived from proposals submitted by competing offerors and the content of all new text end 16.6 new text begin proposals is nonpublic data under chapter 13 until such time as a notice to award a contract new text end 16.7 new text begin is given by the authority. The agreement shall be subject to the approval of the NFL team. new text end 16.8 new text begin (f) Prior to the time the authority enters into a construction contract with a new text end 16.9 new text begin construction manager or program manager certifying a maximum price and a completion new text end 16.10 new text begin date as provided in paragraph (h), at the request of the NFL team, the authority may new text end 16.11 new text begin authorize, such authorization not to be unreasonably withheld or delayed, the NFL team new text end 16.12 new text begin to provide for management of the construction of the stadium and related stadium new text end 16.13 new text begin infrastructure, in which event the NFL team must assume the role and responsibilities new text end 16.14 new text begin of the authority for completion of construction in a manner consistent with the agreed new text end 16.15 new text begin minimum design standards and design documents, subject to the terms of this act, new text end 16.16 new text begin including responsibility for cost overruns. new text end 16.17 new text begin (g) For each contract for supplies, materials, labor, equipment, or services for new text end 16.18 new text begin the construction of the stadium or infrastructure, the construction manager or program new text end 16.19 new text begin manager shall require: (1) that the contract specify a guaranteed maximum price; and (2) new text end 16.20 new text begin if the amount charged under the contract is less than the guaranteed maximum price, the new text end 16.21 new text begin authority shall pay as follows: (i) half of the difference to the contract holder; and (ii) half new text end 16.22 new text begin of the difference to the state for transfer to the authority for capital reserves. new text end 16.23 new text begin (h) The construction manager or program manager may enter into contracts with new text end 16.24 new text begin contractors for labor, materials, supplies, and equipment for the construction of the new text end 16.25 new text begin stadium and related stadium infrastructure through the process of public bidding, except new text end 16.26 new text begin that the construction manager or program manager may, with the consent of the authority new text end 16.27 new text begin or the NFL team if the NFL team has assumed responsibility for construction: new text end 16.28 new text begin (1) narrow the listing of eligible bidders to those which the construction manager new text end 16.29 new text begin or program manager determines to possess sufficient expertise to perform the intended new text end 16.30 new text begin functions; new text end 16.31 new text begin (2) award contracts to the contractors that the construction manager or program new text end 16.32 new text begin manager determines provide the best value under a request for proposals as described in new text end 16.33 new text begin section 16C.28, subdivision 1, paragraphs (a), clause (2), and (c), which are not required new text end 16.34 new text begin to be the lowest responsible bidder; and new text end 16.35 new text begin (3) for work the construction manager or program manager determines to be critical new text end 16.36 new text begin to the completion schedule, award contracts on the basis of competitive proposals, or new text end 17.1 new text begin perform work with its own forces without soliciting competitive bids if the construction new text end 17.2 new text begin manager or program manager provides evidence of competitive pricing. new text end 17.3 new text begin (i) The authority and the NFL team shall require that the construction manager new text end 17.4 new text begin or program manager certify, before the contract is signed, a guaranteed maximum new text end 17.5 new text begin construction price and completion date to the authority and post a performance bond in an new text end 17.6 new text begin amount at least equal to 100 percent of the certified price or such other security satisfactory new text end 17.7 new text begin to the authority, to cover any costs which may be incurred in excess of the certified price new text end 17.8 new text begin including, but not limited to, costs incurred by the authority or loss of revenues resulting new text end 17.9 new text begin from incomplete construction on the completion date. The authority may secure surety new text end 17.10 new text begin bonds as provided in section 574.26, securing payment of just claims in connection with new text end 17.11 new text begin all public work undertaken by the authority. Persons entitled to the protection of the new text end 17.12 new text begin bonds may enforce them as provided in sections 574.28 to 574.32 and are not entitled to a new text end 17.13 new text begin lien on any property of the authority under the provisions of sections 514.01 to 514.16. new text end 17.14 new text begin The construction of the stadium is a project as that term is defined in section 177.42, new text end 17.15 new text begin subdivision 2, and is subject to the prevailing wage law under sections 177.41 to 177.43. new text end 17.16 new text begin The authority's contract with the construction manager or program manager shall provide new text end 17.17 new text begin that if the construction manager's or program manager's fees charged under the contract new text end 17.18 new text begin are less than the guaranteed maximum price, the authority shall pay: (1) half of the new text end 17.19 new text begin difference to the contract holder; and (2) half of the difference to the state for transfer to new text end 17.20 new text begin the authority for capital reserves. Costs or fees above the agreed guaranteed maximum new text end 17.21 new text begin price shall be the responsibility of the construction manager or program manager. new text end 17.22     new text begin Subd. 2. new text end new text begin Changes. new text end new text begin Unless otherwise agreed to by the authority and the NFL team, new text end 17.23 new text begin if either party requests an agreed upon change in minimum design standards, and this new text end 17.24 new text begin change is responsible for requiring the project to exceed the stated budget, the requesting new text end 17.25 new text begin party is liable for any cost overruns or associated liabilities. new text end 17.26     new text begin Subd. 3. new text end new text begin Stadium design. new text end new text begin The stadium and stadium infrastructure shall be designed new text end 17.27 new text begin and constructed incorporating the following general program and design elements: new text end 17.28 new text begin (1) unless otherwise agreed to by the authority and the NFL team, the stadium new text end 17.29 new text begin shall comprise approximately 1,500,000 square feet with approximately 65,000 seats, new text end 17.30 new text begin expandable to 72,000, shall meet or exceed NFL program requirements, and include new text end 17.31 new text begin approximately 150 suites and approximately 7,500 club seats or other such components as new text end 17.32 new text begin agreed to by the authority and the NFL team; new text end 17.33 new text begin (2) space for NFL team-related exhibitions and sales, which shall include the new text end 17.34 new text begin following: NFL team museum and Hall of Fame, retail merchandise and gift shop retail new text end 17.35 new text begin venues, and themed concessions and restaurants; new text end 18.1 new text begin (3) year-round space for the NFL team administrative operations, sales, and new text end 18.2 new text begin marketing, including a ticket office, team meeting space, locker, and training rooms; new text end 18.3 new text begin (4) space for administrative offices of the authority; new text end 18.4 new text begin (5) 2,000 parking spaces within one block of the stadium, connected by skyway or new text end 18.5 new text begin tunnel to the stadium, and 500 parking spaces within two blocks of the stadium, with a new text end 18.6 new text begin dedicated walkway on game days; new text end 18.7 new text begin (6) elements sufficient to provide community and civic uses as determined by the new text end 18.8 new text begin authority; and new text end 18.9 new text begin (7) a roof that is fixed or retractable, provided that if the roof is retractable, it is new text end 18.10 new text begin accomplished without any increase to the funding provided by the state or the city. new text end 18.11     new text begin Subd. 4. new text end new text begin Cost overruns, savings. new text end new text begin (a) Within the limits of paragraph (b), the new text end 18.12 new text begin authority may accept financial obligations relating to cost overruns associated with new text end 18.13 new text begin acquisition of the stadium site, stadium infrastructure, and stadium design, development, new text end 18.14 new text begin and construction, provided that the authority shall bid project construction in a manner new text end 18.15 new text begin that any cost overruns are the responsibility of the successful bidder and not the authority new text end 18.16 new text begin or the state. The authority shall not accept responsibility for cost overruns and shall not new text end 18.17 new text begin be responsible for cost overruns if the authority has authorized the NFL team to provide new text end 18.18 new text begin for management of construction of the stadium under subdivision 1. Cost savings or new text end 18.19 new text begin additional funds obtained by the authority or the NFL team for the stadium or stadium new text end 18.20 new text begin infrastructure may be used first to fund additional stadium or stadium infrastructure, as new text end 18.21 new text begin agreed to by the authority and the NFL team, if any, and then to fund capital reserves. new text end 18.22     new text begin (b) The state share of stadium costs shall be limited to $348,000,000 for construction new text end 18.23 new text begin of a new stadium, as permitted under section 16A.726. The city of Minneapolis share shall new text end 18.24 new text begin be limited to no more than a $150,000,000 contribution for construction, and the annual new text end 18.25 new text begin operating cost and capital contributions contained under section 473J.13. new text end 18.26    Sec. 16. new text begin [473J.112] COMMEMORATIVE BRICKS. new text end 18.27 new text begin The authority shall sell commemorative bricks to be displayed at a prominent new text end 18.28 new text begin location in the new stadium, for an amount to be determined by the authority. Funds raised new text end 18.29 new text begin through this section shall be appropriated to the commissioner of management and budget new text end 18.30 new text begin for transfer to the Minnesota Sports Facilities Authority. new text end 18.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 18.32    Sec. 17. new text begin [473J.12] EMPLOYMENT. new text end 18.33     new text begin Subdivision 1. new text end new text begin Hiring and recruitment. new text end new text begin In the design, development, construction, new text end 18.34 new text begin management, operation, maintenance and capital repair, replacement and improvement of new text end 19.1 new text begin the stadium and stadium infrastructure, the authority shall make every effort to employ, new text end 19.2 new text begin and cause the NFL team, the construction manager and other subcontractors, vendors, and new text end 19.3 new text begin concessionaires to employ women and members of minority communities when hiring. new text end 19.4 new text begin In addition, the authority shall contract with an employment assistance firm, preferably new text end 19.5 new text begin minority-owned, or owned by a disabled individual or a woman, to create an employment new text end 19.6 new text begin program to recruit, hire, and retain minorities for the stadium facility. The authority new text end 19.7 new text begin shall hold a job fair and recruit and advertise at Minneapolis Urban League, Sabathani, new text end 19.8 new text begin American Indian OIC, Youthbuild organizations, and other such organizations. Further, new text end 19.9 new text begin goals for construction contracts to be awarded to women- and minority-owned businesses new text end 19.10 new text begin will be in a percentage at least equal to the minimum used for city of Minneapolis new text end 19.11 new text begin development projects, and the other construction workforce will establish workforce new text end 19.12 new text begin utilization goals at least equal to current city goals and include workers from city zip new text end 19.13 new text begin codes that have high rates of poverty and unemployment. new text end 19.14     new text begin Subd. 2. new text end new text begin Other required agreements. new text end new text begin The NFL team or the authority shall give new text end 19.15 new text begin food, beverage, retail, and concession workers presently employed by the NFL team or new text end 19.16 new text begin the Metropolitan Sports Facilities Commission or its vendors at the existing football new text end 19.17 new text begin stadium the opportunity to continue their employment in comparable positions at the new new text end 19.18 new text begin stadium. Workers who are presently represented under a collective bargaining agreement new text end 19.19 new text begin may seek to continue such representation in the facility and designate such, or another new text end 19.20 new text begin collective bargaining unit, as their representative. new text end 19.21    Sec. 18. new text begin [473J.13] STADIUM OPERATIONS; CAPITAL IMPROVEMENTS. new text end 19.22     new text begin Subdivision 1. new text end new text begin Stadium operation. new text end new text begin The stadium shall be operated in a first-class new text end 19.23 new text begin manner, similar to and consistent with other comparable NFL stadiums. The authority new text end 19.24 new text begin and the team will mutually agree on a third-party management company or individual to new text end 19.25 new text begin manage the stadium and on certain major vendors to the stadium. The authority, with the new text end 19.26 new text begin approval of the NFL team, may enter into an agreement with a program manager for new text end 19.27 new text begin management of the stadium, for a maximum of 30 years. new text end 19.28     new text begin Subd. 2. new text end new text begin Operating expenses. new text end new text begin (a) The authority must pay or cause to be paid new text end 19.29 new text begin all operating expenses of the stadium. The authority must require in the lease or use new text end 19.30 new text begin agreement with the NFL team that the NFL team pay the authority, beginning January 1, new text end 19.31 new text begin 2016, or other date as mutually agreed upon by the parties, toward operating costs of the new text end 19.32 new text begin stadium, $8,500,000 each year, increased by a three percent annual inflation rate. new text end 19.33 new text begin (b) Beginning January 1, 2016, or other date as mutually agreed upon by the new text end 19.34 new text begin parties, and continuing through 2020, the state shall pay the authority operating expenses, new text end 19.35 new text begin $6,000,000 each year, increased by an annual adjustment factor. The payment of new text end 20.1 new text begin $6,000,000 per year beginning in 2016 is a payment by the state, which shall be repaid to new text end 20.2 new text begin the state, using funds as provided under section 297A.994, subdivision 4, clause (4). After new text end 20.3 new text begin 2020, the state shall assume this payment, using funds generated in accordance with the new text end 20.4 new text begin city of Minneapolis as specified under section 297A.994, subdivision 4, clause (3). new text end 20.5 new text begin (c) The authority may establish an operating reserve to cover operating expense new text end 20.6 new text begin shortfalls and may accept funds from any source for deposit in the operating reserve. The new text end 20.7 new text begin establishment or funding of an authority operating reserve must not decrease the amounts new text end 20.8 new text begin required to be paid to the authority toward operating costs under this subdivision unless new text end 20.9 new text begin agreed to by the authority. new text end 20.10 new text begin (d) The authority will be responsible for operating cost overruns. new text end 20.11 new text begin (e) After the joint selection of the third-party manager or program manager, the new text end 20.12 new text begin authority may agree with a program manager or other third-party manager of the stadium new text end 20.13 new text begin on a fixed cost operating, management, or employment agreement with operating new text end 20.14 new text begin cost protections under which the program manager or third-party manager assumes new text end 20.15 new text begin responsibility for stadium operating costs and shortfalls. The agreement with the manager new text end 20.16 new text begin must require the manager to prepare an initial and ongoing operating plan and operating new text end 20.17 new text begin budgets for approval by the authority in consultation with the NFL team. The manager new text end 20.18 new text begin must agree to operate the stadium in accordance with the approved operating plan and new text end 20.19 new text begin operating budget. new text end 20.20     new text begin Subd. 3. new text end new text begin Public access. new text end new text begin The authority will work to maximize access for public and new text end 20.21 new text begin amateur sports, community, and civic events, and other public events in type and on terms new text end 20.22 new text begin consistent with those currently held at the existing football stadium, as defined in section new text end 20.23 new text begin 473.551, subdivision 9. The authority may provide that these events have exclusive use new text end 20.24 new text begin of the premises at agreed-upon times subject to the scheduling rights of the NFL team new text end 20.25 new text begin under the lease or use agreement. new text end 20.26     new text begin Subd. 4. new text end new text begin Capital improvements. new text end new text begin (a) The authority shall establish a capital new text end 20.27 new text begin reserve fund. The authority shall be responsible for making, or for causing others to new text end 20.28 new text begin make, all capital repairs, replacements, and improvements for the stadium and stadium new text end 20.29 new text begin infrastructure. The authority shall maintain, or cause others to maintain, the stadium and new text end 20.30 new text begin stadium infrastructure in a safe, clean, attractive, and first-class manner so as to cause new text end 20.31 new text begin them to remain in a condition comparable to that of other comparable NFL facilities of new text end 20.32 new text begin similar design and age. The authority shall make, or cause others to make, all necessary new text end 20.33 new text begin or appropriate repairs, renewals, and replacements, whether structural or nonstructural, new text end 20.34 new text begin interior or exterior, ordinary or extraordinary, foreseen or unforeseen, in a prompt and new text end 20.35 new text begin timely manner. In addition, the authority, with approval of the NFL team, may enter into new text end 20.36 new text begin an agreement with a program manager to perform some or all of the responsibilities of the new text end 21.1 new text begin authority in this subdivision and to assume and accept financial liability for the cost of new text end 21.2 new text begin performing the responsibilities. new text end 21.3 new text begin (b) The NFL team must contribute $1,500,000 each year, beginning in 2016 or as new text end 21.4 new text begin otherwise determined for the term of the lease or use agreement to the capital reserve fund, new text end 21.5 new text begin increased by a three percent annual inflation rate. new text end 21.6 new text begin (c) The state shall contribute $1,500,000 each year, beginning in 2016 or as otherwise new text end 21.7 new text begin determined for the term of the lease to the capital reserve fund. The contributions of the new text end 21.8 new text begin state are subject to increase by an annual adjustment factor. The contribution under this new text end 21.9 new text begin paragraph by the state from 2016 through 2020 shall be repaid to the state using funds in new text end 21.10 new text begin accordance with section 297A.994, subdivision 4, clause (4). new text end 21.11 new text begin (d) The authority with input from the NFL team shall develop short-term and new text end 21.12 new text begin long-term capital funding plans and shall use those plans to guide the future capital needs new text end 21.13 new text begin of the stadium and stadium infrastructure. The authority shall make the final determination new text end 21.14 new text begin with respect to funding capital needs. Any capital improvement proposed by the NFL new text end 21.15 new text begin team intended primarily to provide revenue enhancements to the NFL team shall be paid new text end 21.16 new text begin for by the NFL team, unless otherwise agreed to with the authority. new text end 21.17 new text begin (e) The NFL team has authority to determine the design of a retractable roof feature new text end 21.18 new text begin for the stadium. The NFL team must cooperate with the authority in designing the feature new text end 21.19 new text begin to minimize any additional operating cost. The design must not result in a material new text end 21.20 new text begin marginal increase in the operating or capital costs of the stadium, considering current new text end 21.21 new text begin collections and reserves. new text end 21.22     new text begin Subd. 5. new text end new text begin Game-day payments. new text end new text begin In addition to operating expense contributions new text end 21.23 new text begin of the NFL team under subdivision 2, the NFL team shall pay all NFL game day, NFL new text end 21.24 new text begin team-owned major league soccer, as provided in section 473J.15, subdivision 15, and new text end 21.25 new text begin other NFL team-sponsored event expenses within the stadium and stadium plaza areas. new text end 21.26     new text begin Subd. 6. new text end new text begin Cooperation with financing. new text end new text begin The authority shall cooperate with the new text end 21.27 new text begin NFL team to facilitate the financing of the NFL team's contribution. Such agreement to new text end 21.28 new text begin cooperate shall not require the authority to incur any additional costs or provide conduit new text end 21.29 new text begin financing. The lease, license, and other transaction documents shall include provisions new text end 21.30 new text begin customarily required by lenders in stadium financings. new text end 21.31    Sec. 19. new text begin [473J.15] CRITERIA AND CONDITIONS. new text end 21.32     new text begin Subdivision 1. new text end new text begin Binding and enforceable. new text end new text begin In developing the stadium and entering new text end 21.33 new text begin into related contracts, the authority must follow and enforce the criteria and conditions in new text end 21.34 new text begin this section, provided that a determination by the authority that those criteria or conditions new text end 21.35 new text begin have been met under any agreement or otherwise shall be conclusive. new text end 22.1     new text begin Subd. 2. new text end new text begin NFL team/private contribution; timing of expenditures. new text end new text begin (a) The NFL new text end 22.2 new text begin team/private contribution, including stadium builder license proceeds, for stadium costs new text end 22.3 new text begin must be made in cash in the amount of at least $477,000,000. new text end 22.4 new text begin (b) Prior to the initial deposit of funds under this section, the team must provide new text end 22.5 new text begin security or other credit worthiness in the amount of $50,000,000, subject to the satisfaction new text end 22.6 new text begin of the authority. Prior to the first issuance of bonds under section 16A.965, the first portion new text end 22.7 new text begin of the NFL team/private contribution in the amount of $50,000,000 must be deposited as new text end 22.8 new text begin costs are incurred to the construction fund to pay for the initial stadium costs. new text end 22.9 new text begin (c) After the first $50,000,000 of stadium costs have been paid from the initial new text end 22.10 new text begin NFL team/private contribution, state funds shall be deposited as costs are incurred to the new text end 22.11 new text begin construction fund to pay for the next $50,000,000 of costs of the project. Prior to any state new text end 22.12 new text begin funds being deposited in the construction fund, the NFL team must provide security or a new text end 22.13 new text begin financing commitment reasonably satisfactory to the authority for the balance of the new text end 22.14 new text begin required NFL team/private contribution and for payment of cost overruns if the NFL new text end 22.15 new text begin team assumes responsibility for stadium construction under section 473J.11. Thereafter, new text end 22.16 new text begin budgeted project costs shall be borne by the authority and the NFL team/private new text end 22.17 new text begin contributions in amounts proportionate to their remaining funding commitments. new text end 22.18 new text begin (d) In the event the project terminates before the initial $100,000,000 in contributions new text end 22.19 new text begin are expended by the parties under this subdivision, the parties shall be reimbursed in the new text end 22.20 new text begin amounts they have deposited to the construction fund proportionate to project funding new text end 22.21 new text begin percentages, in the amounts of 51 percent by the authority and 49 percent by the NFL new text end 22.22 new text begin team/private contributions. new text end 22.23     new text begin Subd. 3. new text end new text begin Lease or use agreements; 30-year term. new text end new text begin The authority must enter into new text end 22.24 new text begin a long-term lease or use agreement with the NFL team for the NFL team's use of the new text end 22.25 new text begin stadium. The NFL team must agree to play all preseason, regular season, and postseason new text end 22.26 new text begin home games at the stadium. However, the team may play up to three home games outside new text end 22.27 new text begin of the United States during the first 15 years of the lease or use agreement and up to new text end 22.28 new text begin three home games outside of the United States in the next 15 years of the lease or use new text end 22.29 new text begin agreement. Training facilities must remain in Minnesota during the term of the lease or new text end 22.30 new text begin use agreement. The lease or use agreement must be for a term of at least 30 years from new text end 22.31 new text begin the date of substantial completion of the stadium for professional football games. The new text end 22.32 new text begin lease or use agreement may provide options for the NFL team to extend the term for up new text end 22.33 new text begin to four additional periods of five years. The lease or use agreement must include terms new text end 22.34 new text begin for default, termination, and breach of the agreement. Recognizing that the presence of new text end 22.35 new text begin professional football provides to the state of Minnesota and its citizens highly valued, new text end 22.36 new text begin intangible benefits that are virtually impossible to quantify and, therefore, not recoverable new text end 23.1 new text begin in the event of the NFL team owner's breach of contract, the lease and use agreements new text end 23.2 new text begin must provide for specific performance and injunctive relief to enforce provisions relating new text end 23.3 new text begin to use of the stadium for professional football and must not include escape clauses new text end 23.4 new text begin or buyout provisions. The NFL team must not enter into or accept any agreement or new text end 23.5 new text begin requirement with or from any entity that is inconsistent with the NFL team's binding new text end 23.6 new text begin commitment to the 30-year term of the lease or use agreement or that would in any manner new text end 23.7 new text begin dilute, interfere with, or negate the provisions of the lease or use agreement, providing for new text end 23.8 new text begin specific performance or injunctive relief. The legislature conclusively determines, as a new text end 23.9 new text begin matter of public policy, that the lease or use agreement, and any grant agreement under new text end 23.10 new text begin this chapter that includes a specific performance clause: new text end 23.11 new text begin (1) explicitly authorizes specific performance as a remedy for breach; new text end 23.12 new text begin (2) is made for adequate consideration and upon terms which are otherwise fair new text end 23.13 new text begin and reasonable; new text end 23.14 new text begin (3) has not been included through sharp practice, misrepresentation, or mistake; new text end 23.15 new text begin (4) if specifically enforced, does not cause unreasonable or disproportionate hardship new text end 23.16 new text begin or loss to the NFL team or to third parties; and new text end 23.17 new text begin (5) involves performance in a manner and the rendering of services of a nature and new text end 23.18 new text begin under circumstances that the beneficiary cannot be adequately compensated in damages. new text end 23.19     new text begin Subd. 4. new text end new text begin Lease or use agreements; revenues, payments. new text end new text begin A lease or use agreement new text end 23.20 new text begin shall include rent and other fees and expenses to be paid by the NFL team. The authority new text end 23.21 new text begin shall agree to provide in the lease or use agreement for the NFL team to receive all NFL new text end 23.22 new text begin and team event related revenues, including but not limited to, suite revenues, advertising, new text end 23.23 new text begin concessions, signage, broadcast and media, and club seat revenue. The agreement shall new text end 23.24 new text begin also provide that all naming rights to the stadium are retained by the NFL team, subject to new text end 23.25 new text begin the approval of the name or names by the authority consistent with those criteria set out new text end 23.26 new text begin in the lease or use agreement. The agreement shall provide for the authority to receive new text end 23.27 new text begin all general ticket revenues and other event revenues other than from NFL team games, new text end 23.28 new text begin NFL team-owned major league soccer games, and other NFL team events agreed to by new text end 23.29 new text begin the authority. new text end 23.30     new text begin Subd. 5. new text end new text begin Notice of breach or default. new text end new text begin Until 30 years from the date of stadium new text end 23.31 new text begin completion, the NFL team must provide written notice to the authority not less than 180 new text end 23.32 new text begin days prior to any action, including any action imposed upon the NFL team by the NFL, new text end 23.33 new text begin which would result in a breach or default of provisions of the lease or use agreements new text end 23.34 new text begin required to be included under subdivision 3. If this notice provision is violated and the new text end 23.35 new text begin NFL team has already breached or been in default under the required provisions, the new text end 23.36 new text begin authority or the state of Minnesota may specifically enforce the lease or use agreement new text end 24.1 new text begin and Minnesota courts shall fashion equitable remedies so that the NFL team fulfills the new text end 24.2 new text begin conditions of the lease and use agreements. new text end 24.3     new text begin Subd. 6. new text end new text begin Enforceable financial commitments. new text end new text begin The authority must determine before new text end 24.4 new text begin stadium construction begins that all public and private funding sources for construction, new text end 24.5 new text begin operating expenses, and capital improvements and repairs of the stadium are included in new text end 24.6 new text begin written agreements. The committed funds must be adequate to design, construct, furnish, new text end 24.7 new text begin and equip the stadium, and pay projected operating expenses and the costs of capital new text end 24.8 new text begin improvements and repairs during the term of the lease or use agreement with the NFL new text end 24.9 new text begin team. The NFL team must provide the authority access to NFL team financial or other new text end 24.10 new text begin information, which the authority deems necessary for such determination. Any financial new text end 24.11 new text begin information obtained by the authority under this subdivision is nonpublic data under new text end 24.12 new text begin section 13.02, subdivision 9. new text end 24.13     new text begin Subd. 7. new text end new text begin Environmental requirements. new text end new text begin The authority must comply with all new text end 24.14 new text begin environmental requirements imposed by regulatory agencies for the stadium, site, and new text end 24.15 new text begin structure, except as provided by section 473J.09, subdivision 11, or by section 473J.17. new text end 24.16     new text begin Subd. 8. new text end new text begin Public share on sale of NFL team. new text end new text begin (a) The lease or use agreement must new text end 24.17 new text begin provide that if the NFL team is sold, or an interest in the NFL team is sold after the effective new text end 24.18 new text begin date of this section, a portion of the sale price, determined according to the schedule in new text end 24.19 new text begin paragraph (b), is the public share and must be paid to the state and the city, in amounts new text end 24.20 new text begin proportionate to the expenditures made by the state and from city taxes, respectively, for new text end 24.21 new text begin the purposes of this chapter. If any portion of the public share of the sale price remains new text end 24.22 new text begin after the state and city have been paid, that amount must be deposited in the general fund. new text end 24.23 new text begin (b) The portion of the sale price required to be paid under paragraph (a) is: new text end 24.24 new text begin (1) 25 percent of the amount in excess of the purchase price of the NFL team by the new text end 24.25 new text begin selling owner or owners for ten years, beginning on the effective date of this section; new text end 24.26 new text begin (2) 15 percent during years 11 to 15 after the effective date of this section; and new text end 24.27 new text begin (3) ten percent during years 16 to 20 after the effective date of this section. new text end 24.28 new text begin Thereafter, no portion of the sale price is required to be paid under paragraph (a). new text end 24.29 new text begin (c) The agreement must provide exceptions for sales to members of the owners' new text end 24.30 new text begin families and entities and trusts beneficially owned by family members, sales to employees new text end 24.31 new text begin of equity interests aggregating up to ten percent, sales related to capital infusions not new text end 24.32 new text begin distributed to the owners, and sales among existing owners not exceeding 20 percent new text end 24.33 new text begin equity interest in the NFL team. new text end 24.34     new text begin Subd. 9. new text end new text begin Authority's access to NFL team financial information. new text end new text begin A notice new text end 24.35 new text begin provision for a material breach shall be agreed to between the authority and the NFL team. new text end 24.36 new text begin In the event there is a material breach by the NFL team under the lease or use agreement, new text end 25.1 new text begin the lease or use agreement must provide the authority access to audited financial statements new text end 25.2 new text begin of the NFL team and other financial information that the authority deems necessary to new text end 25.3 new text begin enforce the terms of any lease or use agreements. Any financial information obtained by new text end 25.4 new text begin the authority under this subdivision is nonpublic data under section 13.02, subdivision 9. new text end 25.5     new text begin Subd. 10. new text end new text begin NFL team name retained. new text end new text begin The lease or use agreement must provide new text end 25.6 new text begin that the NFL shall retain the Minnesota Vikings' heritage and records, including the name, new text end 25.7 new text begin logo, colors, history, playing records, trophies, and memorabilia in the event of relocation new text end 25.8 new text begin of the NFL team in violation of the lease or use agreement, and shall not permit use of new text end 25.9 new text begin these rights except for a team located in the state of Minnesota. new text end 25.10     new text begin Subd. 11. new text end new text begin Stadium design. new text end new text begin (a) To the extent practicable, the authority and the new text end 25.11 new text begin NFL team will build a stadium that is environmentally and energy efficient and will new text end 25.12 new text begin make an effort to build a stadium that is eligible to receive the Leadership in Energy and new text end 25.13 new text begin Environmental Design (LEED) certification or the Green Building Initiative Green Globes new text end 25.14 new text begin certification for environmental design, and to the extent practicable, will strive to make the new text end 25.15 new text begin stadium design architecturally significant. new text end 25.16 new text begin (b) To the extent practicable, the stadium design must, to the extent that the costs new text end 25.17 new text begin of following the guidelines have a payback in energy savings in 30 years or less, follow new text end 25.18 new text begin sustainable building guidelines established under section 16B.325. The authority and new text end 25.19 new text begin NFL team must work with local utility companies to establish a base utility cost under new text end 25.20 new text begin the state energy codes and calculate energy cost savings resulting from complying with new text end 25.21 new text begin the guidelines. The authority and NFL team must fully utilize conservation improvement new text end 25.22 new text begin assistance under section 216B.241 and other energy savings programs available to them. new text end 25.23 new text begin (c) To the extent practicable, the authority and the team must ensure that the stadium new text end 25.24 new text begin be built with American-made steel that is made from Minnesota iron ore. new text end 25.25     new text begin Subd. 12. new text end new text begin Necessary approvals. new text end new text begin The authority and the NFL team must secure new text end 25.26 new text begin any necessary approvals to the terms of the lease and use agreement and the design and new text end 25.27 new text begin construction plans for the stadium, including prior approval of the NFL. new text end 25.28     new text begin Subd. 13. new text end new text begin Affordable access. new text end new text begin The lease or use agreement must provide for an new text end 25.29 new text begin agreed-upon number of affordable tickets to the professional sporting events held in the new text end 25.30 new text begin stadium. new text end 25.31     new text begin Subd. 14. new text end new text begin Stadium builder's licenses. new text end new text begin The authority shall own and retain the new text end 25.32 new text begin exclusive right to sell stadium builder's licenses in the stadium. The authority will retain new text end 25.33 new text begin the NFL team to act as the authority's agent in marketing and selling such licenses. new text end 25.34     new text begin Subd. 15. new text end new text begin Major league soccer. new text end new text begin The authority shall, for five years after the first new text end 25.35 new text begin NFL team home game is played in the stadium, grant the NFL team the exclusive right to new text end 26.1 new text begin establish major league soccer at the stadium. The authority and the NFL team may enter new text end 26.2 new text begin into an agreement providing the terms and conditions of such an arrangement, provided: new text end 26.3 new text begin (1) if any of the NFL team owners whose family owns at least three percent of new text end 26.4 new text begin the NFL team purchases full or partial ownership in a major league soccer franchise, new text end 26.5 new text begin such franchise may play in the stadium under a use agreement with similar terms as are new text end 26.6 new text begin applicable to the NFL team which shall include rent based on market conditions but not new text end 26.7 new text begin less than a provision of payment of game-day costs and reasonable marginal costs incurred new text end 26.8 new text begin by the authority as a result of the major league soccer team; and new text end 26.9 new text begin (2) capital improvements required by a major league soccer franchise must be new text end 26.10 new text begin financed by the owners of the major league soccer team, unless otherwise agreed to by new text end 26.11 new text begin the authority. new text end 26.12     new text begin Subd. 16. new text end new text begin NFL team-related entities. new text end new text begin Subject to the prior approval of the authority, new text end 26.13 new text begin which shall not be unreasonably withheld, any of the obligations by the NFL team may new text end 26.14 new text begin be performed by the NFL team, a related entity, or a third party, and the NFL team, any new text end 26.15 new text begin entity related to the NFL team or third party may receive any revenues to which the NFL new text end 26.16 new text begin team is entitled hereunder; provided, however, the NFL team shall remain liable if any new text end 26.17 new text begin obligations are assigned to a related entity or third party. new text end 26.18    Sec. 20. new text begin [473J.17] MUNICIPAL ACTIVITIES. new text end 26.19     new text begin Subdivision 1. new text end new text begin Property acquisition and disposition. new text end new text begin The city may, to the extent new text end 26.20 new text begin legally permissible, acquire land, air rights, and other property interests within the new text end 26.21 new text begin development area for the stadium site and stadium infrastructure and convey it to the new text end 26.22 new text begin authority with or without consideration, prepare a site for development as a stadium, and new text end 26.23 new text begin acquire and construct any related stadium infrastructure. To the extent property parcels or new text end 26.24 new text begin interests acquired are more extensive than the stadium infrastructure requirements, the city new text end 26.25 new text begin may sell or otherwise dispose of the excess. new text end 26.26     new text begin Subd. 2. new text end new text begin Claims. new text end new text begin Except as may be mutually agreed to by the city and the authority, new text end 26.27 new text begin the city has no interest in or claim to any assets or revenues of the authority. new text end 26.28     new text begin Subd. 3. new text end new text begin Environmental; planning and zoning. new text end new text begin The authority is the responsible new text end 26.29 new text begin governmental unit for an environmental impact statement for the stadium prepared under new text end 26.30 new text begin section 116D.04, if an environmental impact statement is necessary. Notwithstanding new text end 26.31 new text begin section 116D.04, subdivision 2b, and implementing rules: (1) the environmental new text end 26.32 new text begin impact statement shall not be required to consider alternative stadium sites; and (2) the new text end 26.33 new text begin environmental impact statement must be determined to be adequate before commencing new text end 26.34 new text begin work on the foundation of the stadium, but the stadium and stadium infrastructure may new text end 26.35 new text begin otherwise be started and all preliminary and final government decisions and actions may new text end 27.1 new text begin be made and taken including, but not limited to, acquiring land; obtaining financing; new text end 27.2 new text begin granting permits or other land use approvals; entering into grant, lease, or use agreements; new text end 27.3 new text begin or preparing the site or related stadium infrastructure prior to a determination of the new text end 27.4 new text begin adequacy of the environmental impact statement. new text end 27.5     new text begin Subd. 4. new text end new text begin Local government expenditure. new text end new text begin The city may make expenditures or new text end 27.6 new text begin grants for other costs incidental and necessary to further the purposes of this chapter and new text end 27.7 new text begin may, by agreement, reimburse in whole or in part, any entity that has granted, loaned, or new text end 27.8 new text begin advanced funds to the city to further the purposes of this chapter. The city may reimburse new text end 27.9 new text begin the authority or a local governmental entity or make a grant to the authority or such a new text end 27.10 new text begin governmental unit or be reimbursed by the authority or local governmental entity for site new text end 27.11 new text begin acquisition, preparation of the site for stadium development, and stadium infrastructure. new text end 27.12     new text begin Subd. 5. new text end new text begin Municipal authority. new text end new text begin The legislature intends that, except as expressly new text end 27.13 new text begin limited herein, the city may acquire and develop stadium infrastructure, enter into contracts new text end 27.14 new text begin with the authority and other governmental or nongovernmental entities, appropriate funds, new text end 27.15 new text begin and make employees, consultants, and other revenues available for those purposes. new text end 27.16     new text begin Subd. 6. new text end new text begin Stadium Implementation Committee; city review. new text end new text begin In order to accomplish new text end 27.17 new text begin the objectives of this act within the required time frame, it is necessary to establish an new text end 27.18 new text begin alternative process for municipal land use and development review. It is hereby found new text end 27.19 new text begin and declared that the construction of a stadium within the development area is consistent new text end 27.20 new text begin with the adopted area plan, is the preferred stadium location, and is a permitted land use. new text end 27.21 new text begin This subdivision establishes a procedure for all land use and development reviews and new text end 27.22 new text begin approvals by the city of Minneapolis for the stadium and related stadium infrastructure new text end 27.23 new text begin and supersedes all land use and development rules and restrictions and procedures new text end 27.24 new text begin imposed by other law, charter, or ordinance, including without limitation section 15.99. new text end 27.25 new text begin No later than 30 days after timely compliance of the city as provided in article 3, section 7, new text end 27.26 new text begin of this act, the city of Minneapolis shall establish a stadium implementation committee new text end 27.27 new text begin to make recommendations on the design plans submitted for the stadium, and stadium new text end 27.28 new text begin infrastructure, and related improvements. The implementation committee must take new text end 27.29 new text begin action to issue its recommendations within the time frames established in the planning new text end 27.30 new text begin and construction timetable issued by the authority which shall provide for no less than 60 new text end 27.31 new text begin days for the committee's review. The recommendations of the implementation committee new text end 27.32 new text begin shall be forwarded to the city of Minneapolis Planning Commission for an advisory new text end 27.33 new text begin recommendation and then to the city council for final action in a single resolution, which new text end 27.34 new text begin final action must be taken within 45 days of the submission of the recommendations to the new text end 27.35 new text begin planning commission. The city council shall not impose any unreasonable conditions on new text end 27.36 new text begin the recommendations of the implementation committee, nor take any action or impose new text end 28.1 new text begin any conditions that will result in delay from the time frames established in the planning new text end 28.2 new text begin and construction timetable or in additional overall costs. Failure of the city council to act new text end 28.3 new text begin within the 45-day period shall be deemed to be approval. The authority may seek de novo new text end 28.4 new text begin review in the district court of any city council action. The district court or any appellate new text end 28.5 new text begin court shall expedite review to the maximum extent possible and timely issue relief, orders, new text end 28.6 new text begin or opinions as necessary to give effect to the provisions and objectives in this act. new text end 28.7    Sec. 21. new text begin [473J.19] PROPERTY TAX EXEMPTION; SPECIAL ASSESSMENTS. new text end 28.8 new text begin Any real or personal property acquired, owned, leased, controlled, used, or occupied new text end 28.9 new text begin by the authority for any of the purposes of this chapter, is acquired, owned, leased, new text end 28.10 new text begin controlled, used, and occupied for public, governmental, and municipal purposes. The new text end 28.11 new text begin stadium and stadium infrastructure are exempt from ad valorem taxation by the state new text end 28.12 new text begin or any political subdivision of the state provided that the properties are subject to new text end 28.13 new text begin special assessments levied by a political subdivision for a local improvement in amounts new text end 28.14 new text begin proportionate to and not exceeding the special benefit received by the properties from the new text end 28.15 new text begin improvement. No possible use of any of the properties in any manner different from their new text end 28.16 new text begin use under this chapter may be considered in determining the special benefit received by new text end 28.17 new text begin the properties. Notwithstanding section 272.01, subdivision 2, or 273.19, real or personal new text end 28.18 new text begin property which is subject to a lease or use agreement between the authority and another new text end 28.19 new text begin person for uses related to the purposes of this chapter, including the operation of the new text end 28.20 new text begin stadium and related parking facilities, is exempt from taxation regardless of the length of new text end 28.21 new text begin the lease or use agreement or the characteristics of the entity leasing or using the property. new text end 28.22 new text begin This section, insofar as it provides an exemption or special treatment, does not apply to new text end 28.23 new text begin any real property that is leased for residential, business, or commercial development or to new text end 28.24 new text begin a restaurant that is open for general business more than 200 days a year, or other purposes new text end 28.25 new text begin different from those contemplated in this chapter. new text end 28.26    Sec. 22. new text begin [473J.21] LIQUOR LICENSES. new text end 28.27 new text begin At the request of the authority, the city may issue intoxicating liquor licenses that are new text end 28.28 new text begin reasonably required for the premises of the stadium site. These licenses are in addition to new text end 28.29 new text begin the number authorized by law. All provisions of chapter 340A not inconsistent with this new text end 28.30 new text begin section apply to the licenses authorized under this section. new text end 28.31    Sec. 23. new text begin [473J.23] LOCAL TAXES. new text end 28.32 new text begin No new or additional local sales or use tax shall be imposed on sales at the stadium new text end 28.33 new text begin site unless the tax is applicable throughout the taxing jurisdiction. Except for a tax new text end 29.1 new text begin imposed under section 16A.1524, no new or additional local tax shall be imposed on sales new text end 29.2 new text begin of tickets and admissions to NFL team, NFL team-owned major league soccer, or other new text end 29.3 new text begin team related events at the stadium, notwithstanding any law or ordinance, unless the tax new text end 29.4 new text begin is applicable throughout the taxing jurisdiction. The admissions and amusements tax new text end 29.5 new text begin currently imposed by the city of Minneapolis pursuant to Laws 1969, chapter 1092, may new text end 29.6 new text begin apply to admissions for football and NFL team related events, including NFL team-owned new text end 29.7 new text begin major league soccer, as provided in section 473J.15, subdivision 15, at the stadium. new text end 29.8    Sec. 24. new text begin [473J.25] METROPOLITAN SPORTS FACILITIES COMMISSION new text end 29.9 new text begin ASSETS; LIABILITIES TO AUTHORITY. new text end 29.10     new text begin Subdivision 1. new text end new text begin Authority expenses. new text end new text begin The Metropolitan Sports Facilities Commission new text end 29.11 new text begin shall pay the operating expenses of the authority including salaries, compensation, and new text end 29.12 new text begin other personnel, office, equipment, consultant and any other costs, until the commission is new text end 29.13 new text begin abolished pursuant to subdivision 3. new text end 29.14     new text begin Subd. 2. new text end new text begin Transfer. new text end new text begin Within 90 days of the enactment of this chapter, the Metropolitan new text end 29.15 new text begin Sports Facilities Commission shall pay its outstanding obligations, settle its accounts, and new text end 29.16 new text begin transfer its remaining assets, liabilities, and obligations to the authority, for its purposes. new text end 29.17     new text begin Subd. 3. new text end new text begin Metropolitan Sports Facilities Commission abolished; interim powers new text end 29.18 new text begin conferred on authority. new text end new text begin Upon transfer to the authority of all remaining assets, liabilities, new text end 29.19 new text begin and obligations of the Metropolitan Sports Facilities Commission, in subdivision 2, the new text end 29.20 new text begin Metropolitan Sports Facilities Commission is abolished. When the remaining assets, new text end 29.21 new text begin liabilities, and obligations of the Metropolitan Sports Facilities Commission have been new text end 29.22 new text begin transferred to the authority and the commission has been abolished, the powers and duties new text end 29.23 new text begin of the commission under sections 473.551 to 473.599, and any other law shall devolve new text end 29.24 new text begin upon the authority, in addition to the powers and duties of the authority under chapter new text end 29.25 new text begin 473J, until the first NFL home game is played at the stadium. new text end 29.26     new text begin Subd. 4. new text end new text begin Employees. new text end new text begin Upon transfer of ownership all persons employed by the new text end 29.27 new text begin Metropolitan Sports Facilities Commission shall be transferred to the Minnesota Sports new text end 29.28 new text begin Facilities Authority without loss of right or privilege. Nothing in this section shall be new text end 29.29 new text begin construed to give any such person the right or privilege to continue in the same level or new text end 29.30 new text begin classification of employment previously held. The Minnesota Sports Facilities Authority new text end 29.31 new text begin may assign any such person to an employment level and classification which it deems new text end 29.32 new text begin appropriate and desirable in accordance with its personnel code. new text end 29.33     new text begin Subd. 5. new text end new text begin Conforming changes. new text end new text begin The Metropolitan Sports Facilities Commission new text end 29.34 new text begin shall submit a technical bill to the 2013 legislature making any cross-reference, new text end 30.1 new text begin grammatical, or other conforming changes necessary as a result of this act. This bill new text end 30.2 new text begin shall be submitted by February 12, 2013. new text end 30.3    Sec. 25. new text begin EFFECTIVE DATE. new text end 30.4 new text begin Except as otherwise provided, this article is effective the day following final new text end 30.5 new text begin enactment. new text end 30.6ARTICLE 2 30.7STATE STADIUM FUNDING 30.8    Section 1. new text begin [16A.965] STADIUM APPROPRIATION BONDS. new text end 30.9     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) The definitions in this subdivision and in chapter new text end 30.10 new text begin 473J apply to this section. new text end 30.11 new text begin (b) "Appropriation bond" means a bond, note, or other similar instrument of the state new text end 30.12 new text begin payable during a biennium from one or more of the following sources: new text end 30.13 new text begin (1) money appropriated by law from the general fund in any biennium for debt new text end 30.14 new text begin service due with respect to obligations described in subdivision 2, paragraph (b); new text end 30.15 new text begin (2) proceeds of the sale of obligations described in subdivision 2, paragraph (b); new text end 30.16 new text begin (3) payments received for that purpose under agreements and ancillary arrangements new text end 30.17 new text begin described in subdivision 2, paragraph (d); and new text end 30.18 new text begin (4) investment earnings on amounts in clauses (1) to (3). new text end 30.19 new text begin (c) "Debt service" means the amount payable in any biennium of principal, premium, new text end 30.20 new text begin if any, and interest on appropriation bonds. new text end 30.21     new text begin Subd. 2. new text end new text begin Authorization to issue appropriation bonds. new text end new text begin (a) Subject to the new text end 30.22 new text begin limitations of this subdivision, the commissioner may sell and issue appropriation bonds new text end 30.23 new text begin of the state under this section for public purposes as provided by law, including, in new text end 30.24 new text begin particular, the financing of all or a portion of the acquisition, construction, improving, new text end 30.25 new text begin and equipping of the stadium project of the Minnesota Sports Facilities Authority as new text end 30.26 new text begin provided by chapter 473J. Proceeds of the appropriation bonds must be credited to a new text end 30.27 new text begin special appropriation stadium bond proceeds fund in the state treasury. Net income from new text end 30.28 new text begin investment of the proceeds, as estimated by the commissioner, must be credited to the new text end 30.29 new text begin special appropriation stadium bond proceeds fund. new text end 30.30 new text begin (b) Appropriation bonds may be sold and issued in amounts that, in the opinion of new text end 30.31 new text begin the commissioner, are necessary to provide sufficient funds, not to exceed $498,000,000 new text end 30.32 new text begin net of costs of issuance, revenue generated under section 16A.6455, and allocated by the new text end 30.33 new text begin commissioner of management and budget for this purpose and costs of credit enhancement new text end 30.34 new text begin for achieving the purposes authorized as provided under paragraph (a), and pay debt new text end 31.1 new text begin service including capitalized interest, pay costs of issuance, make deposits to reserve new text end 31.2 new text begin funds, pay the costs of credit enhancement, or make payments under other agreements new text end 31.3 new text begin entered into under paragraph (d); provided, however, that appropriation bonds issued and new text end 31.4 new text begin unpaid shall not exceed $600,000,000 in principal amount, excluding refunding bonds new text end 31.5 new text begin sold and issued under subdivision 4. new text end 31.6 new text begin (c) Appropriation bonds may be issued from time to time in one or more series on new text end 31.7 new text begin the terms and conditions the commissioner determines to be in the best interests of the new text end 31.8 new text begin state, but the term on any series of appropriation bonds may not exceed 30 years. The new text end 31.9 new text begin appropriation bonds of each issue and series thereof shall be dated and bear interest, new text end 31.10 new text begin and may be includable in or excludable from the gross income of the owners for federal new text end 31.11 new text begin income tax purposes. new text end 31.12 new text begin (d) At the time of, or in anticipation of, issuing the appropriation bonds, and at any new text end 31.13 new text begin time thereafter, so long as the appropriation bonds are outstanding, the commissioner may new text end 31.14 new text begin enter into agreements and ancillary arrangements relating to the appropriation bonds, new text end 31.15 new text begin including but not limited to trust indentures, grant agreements, lease or use agreements, new text end 31.16 new text begin operating agreements, management agreements, liquidity facilities, remarketing or new text end 31.17 new text begin dealer agreements, letter of credit agreements, insurance policies, guaranty agreements, new text end 31.18 new text begin reimbursement agreements, indexing agreements, or interest exchange agreements. Any new text end 31.19 new text begin payments made or received according to the agreement or ancillary arrangement shall be new text end 31.20 new text begin made from or deposited as provided in the agreement or ancillary arrangement. The new text end 31.21 new text begin determination of the commissioner included in an interest exchange agreement that the new text end 31.22 new text begin agreement relates to an appropriation bond shall be conclusive. new text end 31.23 new text begin (e) The commissioner may enter into written agreements or contracts relating to the new text end 31.24 new text begin continuing disclosure of information necessary to comply with, or facilitate the issuance new text end 31.25 new text begin of appropriation bonds in accordance with federal securities laws, rules, and regulations, new text end 31.26 new text begin including Securities and Exchange Commission rules and regulations in Code of Federal new text end 31.27 new text begin Regulations, title 17, section 240.15c 2-12. An agreement may be in the form of covenants new text end 31.28 new text begin with purchasers and holders of appropriation bonds set forth in the order or resolution new text end 31.29 new text begin authorizing the issuance of the appropriation bonds, or a separate document authorized new text end 31.30 new text begin by the order or resolution. new text end 31.31 new text begin (f) The appropriation bonds are not subject to chapter 16C. new text end 31.32     new text begin Subd. 3. new text end new text begin Form; procedure. new text end new text begin (a) Appropriation bonds may be issued in the form new text end 31.33 new text begin of bonds, notes, or other similar instruments, and in the manner provided in section new text end 31.34 new text begin 16A.672. In the event that any provision of section 16A.672 conflicts with this section, new text end 31.35 new text begin this section shall control. new text end 32.1 new text begin (b) Every appropriation bond shall include a conspicuous statement of the limitation new text end 32.2 new text begin established in subdivision 6. new text end 32.3 new text begin (c) Appropriation bonds may be sold at either public or private sale upon such terms new text end 32.4 new text begin as the commissioner shall determine are not inconsistent with this section and may be sold new text end 32.5 new text begin at any price or percentage of par value. Any bid received may be rejected. new text end 32.6 new text begin (d) Appropriation bonds must bear interest at a fixed or variable rate. new text end 32.7 new text begin (e) Notwithstanding any other law, appropriation bonds issued under this section new text end 32.8 new text begin shall be fully negotiable. new text end 32.9     new text begin Subd. 4. new text end new text begin Refunding bonds. new text end new text begin The commissioner from time to time may issue new text end 32.10 new text begin appropriation bonds for the purpose of refunding any appropriation bonds then new text end 32.11 new text begin outstanding, including the payment of any redemption premiums on the bonds, any new text end 32.12 new text begin interest accrued or to accrue to the redemption date, and costs related to the issuance and new text end 32.13 new text begin sale of the refunding bonds. The proceeds of any refunding bonds may, in the discretion of new text end 32.14 new text begin the commissioner, be applied to the purchase or payment at maturity of the appropriation new text end 32.15 new text begin bonds to be refunded, to the redemption of the outstanding appropriation bonds on any new text end 32.16 new text begin redemption date, or to pay interest on the refunding bonds and may, pending application, new text end 32.17 new text begin be placed in escrow to be applied to the purchase, payment, retirement, or redemption. Any new text end 32.18 new text begin escrowed proceeds, pending such use, may be invested and reinvested in obligations that new text end 32.19 new text begin are authorized investments under section 11A.24. The income earned or realized on the new text end 32.20 new text begin investment may also be applied to the payment of the appropriation bonds to be refunded new text end 32.21 new text begin or interest or premiums on the refunded appropriation bonds, or to pay interest on the new text end 32.22 new text begin refunding bonds. After the terms of the escrow have been fully satisfied, any balance of the new text end 32.23 new text begin proceeds and any investment income may be returned to the general fund or, if applicable, new text end 32.24 new text begin the special appropriation stadium bond proceeds fund for use in any lawful manner. All new text end 32.25 new text begin refunding bonds issued under this subdivision must be prepared, executed, delivered, and new text end 32.26 new text begin secured by appropriations in the same manner as the appropriation bonds to be refunded. new text end 32.27     new text begin Subd. 5. new text end new text begin Appropriation bonds as legal investments. new text end new text begin Any of the following entities new text end 32.28 new text begin may legally invest any sinking funds, money, or other funds belonging to them or under new text end 32.29 new text begin their control in any appropriation bonds issued under this section: new text end 32.30 new text begin (1) the state, the investment board, public officers, municipal corporations, political new text end 32.31 new text begin subdivisions, and public bodies; new text end 32.32 new text begin (2) banks and bankers, savings and loan associations, credit unions, trust companies, new text end 32.33 new text begin savings banks and institutions, investment companies, insurance companies, insurance new text end 32.34 new text begin associations, and other persons carrying on a banking or insurance business; and new text end 32.35 new text begin (3) personal representatives, guardians, trustees, and other fiduciaries. new text end 33.1     new text begin Subd. 6. new text end new text begin No full faith and credit; state not required to make appropriations. new text end 33.2 new text begin The appropriation bonds are not public debt of the state, and the full faith, credit, and new text end 33.3 new text begin taxing powers of the state are not pledged to the payment of the appropriation bonds or to new text end 33.4 new text begin any payment that the state agrees to make under this section. Appropriation bonds shall new text end 33.5 new text begin not be obligations paid directly, in whole or in part, from a tax of statewide application new text end 33.6 new text begin on any class of property, income, transaction, or privilege. Appropriation bonds shall be new text end 33.7 new text begin payable in each fiscal year only from amounts that the legislature may appropriate for debt new text end 33.8 new text begin service for any fiscal year, provided that nothing in this section shall be construed to new text end 33.9 new text begin require the state to appropriate funds sufficient to make debt service payments with respect new text end 33.10 new text begin to the appropriation bonds in any fiscal year. Appropriation bonds shall be canceled and new text end 33.11 new text begin shall no longer be outstanding on the earlier of (1) the first day of a fiscal year for which new text end 33.12 new text begin the legislature shall not have appropriated amounts sufficient for debt service, or (2) the new text end 33.13 new text begin date of final payment of the principal of and interest on the appropriation bonds. new text end 33.14     new text begin Subd. 7. new text end new text begin Appropriation of proceeds. new text end new text begin The proceeds of appropriation bonds and new text end 33.15 new text begin interest credited to the special appropriation stadium bond proceeds fund are appropriated new text end 33.16 new text begin to the commissioner for payment of capital expenses including capitalized interest, debt new text end 33.17 new text begin service on outstanding indebtedness of the state, and for the operating and capital reserves new text end 33.18 new text begin of the authority, each as permitted by state and federal law, and nonsalary expenses new text end 33.19 new text begin incurred in conjunction with the sale of the appropriation bonds, and such proceeds may new text end 33.20 new text begin be granted, loaned, or otherwise provided to the authority for the public purpose provided new text end 33.21 new text begin by subdivision 2, paragraph (a). new text end 33.22     new text begin Subd. 8. new text end new text begin Appropriation for debt service and other purposes. new text end new text begin The amount new text end 33.23 new text begin needed to pay principal and interest on appropriation bonds issued under this section is new text end 33.24 new text begin appropriated each fiscal year from the general fund to the commissioner, subject to repeal, new text end 33.25 new text begin unallotment under section 16A.152, or cancellation, otherwise pursuant to subdivision 6, new text end 33.26 new text begin for deposit into the bond payments account established for such purpose in the special new text end 33.27 new text begin appropriation stadium bond proceeds fund. new text end 33.28     new text begin Subd. 9. new text end new text begin Waiver of immunity. new text end new text begin The waiver of immunity by the state provided for new text end 33.29 new text begin by section 3.751, subdivision 1, shall be applicable to the appropriation bonds and any new text end 33.30 new text begin ancillary contracts to which the commissioner is a party. new text end 33.31     new text begin Subd. 10. new text end new text begin Validation. new text end new text begin (a) Appropriation bonds issued under this section may be new text end 33.32 new text begin validated in the manner provided by this subdivision. If comparable appropriation bonds new text end 33.33 new text begin are judicially determined to be valid, nothing in this subdivision shall be construed new text end 33.34 new text begin to prevent the sale or delivery of any appropriation bonds or notes without entry of a new text end 33.35 new text begin judgment of validation by the Minnesota Supreme Court pursuant to this subdivision with new text end 33.36 new text begin respect to the appropriation bonds authorized under this section. new text end 34.1 new text begin (b) Any appropriation bonds issued under this section that are validated shall be new text end 34.2 new text begin validated in the manner provided by this subdivision. new text end 34.3 new text begin (c) The Minnesota Supreme Court shall have original jurisdiction to determine the new text end 34.4 new text begin validation of appropriation bonds and all matters connected therewith. new text end 34.5 new text begin (d) The commissioner may determine the commissioner's authority to issue new text end 34.6 new text begin appropriation bonds and the legality of all proceedings in connection with issuing bonds. new text end 34.7 new text begin For this purpose, a complaint shall be filed by the commissioner in the Minnesota Supreme new text end 34.8 new text begin Court against the state and the taxpayers and citizens. new text end 34.9 new text begin (e) As a condition precedent to filing of a complaint for the validation of new text end 34.10 new text begin appropriation bonds, the commissioner shall take action providing for the issuance of new text end 34.11 new text begin appropriation bonds in accordance with law. new text end 34.12 new text begin (f) The complaint shall set out the state's authority to issue appropriation bonds, the new text end 34.13 new text begin action or proceeding authorizing the issue and its adoption, all other essential proceedings new text end 34.14 new text begin had or taken in connection with issuing bonds, the amount of the appropriation bonds to new text end 34.15 new text begin be issued and the maximum interest they are to bear, and all other pertinent matters. new text end 34.16 new text begin (g) The Minnesota Supreme Court shall issue an order directed against the state and new text end 34.17 new text begin taxpayers, citizens, and others having or claiming any right, title, or interest affected by new text end 34.18 new text begin the issuance of appropriation bonds, or to be affected by the bonds, allowing all persons, new text end 34.19 new text begin in general terms and without naming them, and the state through its attorney general, to new text end 34.20 new text begin appear before the Minnesota Supreme Court at a designated time and place and show new text end 34.21 new text begin why the complaint should not be granted and the proceedings and appropriation bonds new text end 34.22 new text begin validated. A copy of the complaint and order shall be served on the attorney general at new text end 34.23 new text begin least 20 days before the time fixed for hearing. The attorney general shall examine the new text end 34.24 new text begin complaint, and, if it appears or there is reason to believe that it is defective, insufficient, or new text end 34.25 new text begin untrue, or if in the opinion of the attorney general the issuance of the appropriation bonds new text end 34.26 new text begin in question has not been duly authorized, defense shall be made by the attorney general as new text end 34.27 new text begin the attorney general deems appropriate. new text end 34.28 new text begin (h) Before the date set for hearing, as directed by the Minnesota Supreme Court, new text end 34.29 new text begin either the clerk of the Minnesota appellate courts or the commissioner shall publish a copy new text end 34.30 new text begin of the order in a legal newspaper of general circulation in Ramsey County and the state, at new text end 34.31 new text begin least once each week for two consecutive weeks, commencing with the first publication, new text end 34.32 new text begin which shall not be less than 20 days before the date set for hearing. By this publication, new text end 34.33 new text begin all taxpayers, citizens, and others having or claiming any right, title, or interest in the new text end 34.34 new text begin state, are made parties defendant to the action and the Minnesota Supreme Court has new text end 34.35 new text begin jurisdiction of them to the same extent as if named as defendants in the complaint and new text end 34.36 new text begin personally served with process. new text end 35.1 new text begin (i) Any taxpayer, citizen, or person interested may become a party to the action by new text end 35.2 new text begin moving against or pleading to the complaint at or before the time set for hearing. The new text end 35.3 new text begin Minnesota Supreme Court shall determine all questions of law and fact and make orders new text end 35.4 new text begin that will enable it to properly try and determine the action and render a final judgment new text end 35.5 new text begin within 30 days of the hearing with the least possible delay. new text end 35.6 new text begin (j) If the judgment validates appropriation bonds, the judgment is forever conclusive new text end 35.7 new text begin as to all matters adjudicated and as against all parties affected and all others having or new text end 35.8 new text begin claiming any right, title, or interest affected by the issuance of appropriation bonds, or to new text end 35.9 new text begin be affected in any way by issuing the bonds, and the validity of appropriation bonds or of new text end 35.10 new text begin any revenues pledged for the payment of the bonds, or of the proceedings authorizing the new text end 35.11 new text begin issuance of the bonds, including any remedies provided for their collection, shall never new text end 35.12 new text begin be called in question in any court by any person or party. new text end 35.13 new text begin (k)(1) Appropriation bonds, when validated under this section, shall have stamped new text end 35.14 new text begin or written on the bonds, by the proper officers of the state issuing them, a statement new text end 35.15 new text begin in substantially the following form: "This appropriation bond is one of a series of new text end 35.16 new text begin appropriation bonds which were validated by judgment of the Supreme Court of the State new text end 35.17 new text begin of Minnesota, rendered on ……. , ....... (year)". new text end 35.18 new text begin (2) A certified copy of the judgment or decree shall be received as evidence in any new text end 35.19 new text begin court in this state. new text end 35.20 new text begin (l) The costs shall be paid by the state, except when a taxpayer, citizen, or other new text end 35.21 new text begin person contests the action or intervenes, the court may tax the whole or any part of the new text end 35.22 new text begin costs against the person that is equitable. new text end 35.23 new text begin (m) A justice of the Minnesota Supreme Court is not disqualified in any validation new text end 35.24 new text begin action because the justice is a landowner or taxpayer of the state. new text end 35.25ARTICLE 3 35.26MINNEAPOLIS CONVENTION CENTER 35.27    Section 1. new text begin [297A.994] CITY OF MINNEAPOLIS SALES TAX; ALLOCATION new text end 35.28 new text begin OF REVENUES. new text end 35.29     new text begin Subdivision 1. new text end new text begin Scope. new text end new text begin Notwithstanding the provisions of section 297A.99, new text end 35.30 new text begin subdivision 11, the provisions of this section govern the remittance of the proceeds of new text end 35.31 new text begin taxes imposed by the city of Minneapolis under the special law. new text end 35.32     new text begin Subd. 2. new text end new text begin Definitions. new text end new text begin (a) For purposes of this section, the following definitions new text end 35.33 new text begin apply. new text end 35.34 new text begin (b) "City" means the city of Minneapolis. new text end 35.35 new text begin (c) "Special law" means Laws 1986, chapter 396, sections 4 and 5, as amended. new text end 36.1 new text begin (d) "Tax" means the sales taxes imposed by the city under the special law. new text end 36.2 new text begin (e) The terms defined under section 473J.03 apply for purposes of this section. new text end 36.3     new text begin Subd. 3. new text end new text begin General allocation of revenues. new text end new text begin The commissioner shall remit the new text end 36.4 new text begin revenues from the taxes, less the deductions listed in this subdivision, to the city at least new text end 36.5 new text begin quarterly. The commissioner shall make the following deductions in the order listed new text end 36.6 new text begin before distribution to the city: new text end 36.7 new text begin (1) refunds of any of these taxes due to taxpayers, if any; new text end 36.8     new text begin (2) the direct and indirect costs of the department to administer, audit, and collect the new text end 36.9 new text begin tax, according to the applicable law and agreements between the commissioner and the new text end 36.10 new text begin city. For revenues from the general local sales and use tax, the commissioner must deduct new text end 36.11 new text begin a proportionate share of costs described in section 297A.99, subdivision 11; and new text end 36.12 new text begin (3) notwithstanding the provisions of any agreement between the commissioner and new text end 36.13 new text begin the city providing for collection and remittance of these taxes, the commissioner must new text end 36.14 new text begin deposit to the general fund the amounts specified in subdivision 4. new text end 36.15     new text begin Subd. 4. new text end new text begin General fund allocations. new text end new text begin The commissioner must retain and deposit to new text end 36.16 new text begin the general fund the following amounts, as required by subdivision 3, clause (3): new text end 36.17 new text begin (1) for state bond debt service support beginning in calendar year 2021, and for each new text end 36.18 new text begin calendar year thereafter through calendar year 2046, periodic amounts so that not later new text end 36.19 new text begin than December 31, 2046, an aggregate amount equal to a present value of $150,000,000 new text end 36.20 new text begin has been deposited in the general fund. To determine aggregate present value, the new text end 36.21 new text begin commissioner must consult with the commissioner of management and budget regarding new text end 36.22 new text begin the present value dates, discount rate or rates, and schedules of annual amounts. The new text end 36.23 new text begin present value date or dates must be based on the date or dates bonds are sold under section new text end 36.24 new text begin 16A.965, or the date or dates other state funds, if any, are deposited into the construction new text end 36.25 new text begin fund. The discount rate or rates must be based on the true interest cost of the bonds new text end 36.26 new text begin issued under section 16A.965, or an equivalent 30-year bond index, as determined by the new text end 36.27 new text begin commissioner of management and budget. The schedule of annual amounts must be new text end 36.28 new text begin certified to the commissioner by the commissioner of management and budget and the new text end 36.29 new text begin finance officer of the city; new text end 36.30 new text begin (2) for the capital improvement reserve appropriation to the sports facilities authority new text end 36.31 new text begin beginning in calendar year 2021, and for each calendar year thereafter through calendar new text end 36.32 new text begin year 2046, an aggregate annual amount equal to the amount paid by the state for this new text end 36.33 new text begin purpose in that calendar year under section 473J.13, subdivision 4; new text end 36.34 new text begin (3) for the operating expense appropriation to sports facilities authority beginning in new text end 36.35 new text begin calendar year 2021, and for each calendar year thereafter through calendar year 2046, an new text end 37.1 new text begin aggregate annual amount equal to the amount paid by the state for this purpose in that new text end 37.2 new text begin calendar year under section 473J.13, subdivision 2; new text end 37.3 new text begin (4) for recapture of state advances for capital improvements and operating expenses new text end 37.4 new text begin for calendar years 2016 through 2020 beginning in calendar year 2021, and for each new text end 37.5 new text begin calendar year thereafter until all amounts under this clause have been paid, proportionate new text end 37.6 new text begin amounts periodically until an aggregate amount equal to the present value of all amounts new text end 37.7 new text begin paid by the state have been deposited in the general fund. To determine the present new text end 37.8 new text begin value of the amounts paid by the state to the authority and the present value of amounts new text end 37.9 new text begin deposited to the general fund under this clause, the commissioner shall consult with the new text end 37.10 new text begin commissioner of management and budget regarding the present value dates, discount rate new text end 37.11 new text begin or rates, and schedule of annual amounts. The present value dates must be based on new text end 37.12 new text begin the dates state funds are paid to the authority, or the dates the commissioner of revenue new text end 37.13 new text begin deposits taxes for purposes of this clause to the general fund. The discount rates must be new text end 37.14 new text begin based on the reasonably equivalent cost of state funds as determined by the commissioner new text end 37.15 new text begin of management and budget. The schedule of annual amounts must be revised to reflect new text end 37.16 new text begin amounts paid under section 473J.13, subdivision 2, paragraph (b) for 2016 to 2020, and new text end 37.17 new text begin subdivision 4, paragraph (c) for 2016 to 2020, and taxes deposited to the general fund from new text end 37.18 new text begin time to time under this clause, and the schedule and revised schedules must be certified new text end 37.19 new text begin to the commissioner by the commissioner of management and budget and the finance new text end 37.20 new text begin officer of the city, and are transferred as accrued from the general fund for repayment of new text end 37.21 new text begin advances made by the state to the authority; and new text end 37.22 new text begin (5) to capture increases in taxes imposed under the special law, for the benefit of new text end 37.23 new text begin the sports facilities authority, beginning in calendar year 2013 and for each calendar year new text end 37.24 new text begin thereafter through 2046, there shall be deposited to the general fund in proportionate new text end 37.25 new text begin periodic payments in the following year, an amount equal to the following: new text end 37.26 new text begin (i) 50 percent of the difference, if any, by which the amount of the net annual taxes new text end 37.27 new text begin for the previous year exceeds the sum of the net actual taxes in calendar year 2011 plus new text end 37.28 new text begin $1,000,000, inflated at two percent per year since 2011, minus new text end 37.29 new text begin (ii) 25 percent of the difference, if any, by which the amount of the net annual taxes new text end 37.30 new text begin for the preceding year exceeds the sum of the net actual taxes in calendar year 2011 plus new text end 37.31 new text begin $3,000,000, inflated at two percent per year since 2011. new text end 37.32    Sec. 2. Laws 1986, chapter 396, section 4, as amended by Laws 1987, chapter 55, 37.33sections 5 and 6, and Laws 2009, chapter 88, article 4, sections 11 and 12, is amended to 37.34read: 37.35    Sec. 4. SALES AND USE TAX. 38.1    Subdivision 1. Imposition. Notwithstanding Minnesota Statutes, section 477A.016, 38.2or any other contrary provision of law, ordinance, or city charter, upon approval by 38.3the city's board of estimate and taxation by a vote of at least five members, the city of 38.4Minneapolis may by ordinance impose an additional sales tax of up to one-half of one 38.5percent on sales taxable pursuant to Minnesota Statutes, chapter 297A that occur within 38.6the city, and may also by ordinance impose an additional compensating use tax of up to 38.7one-half of one percent on uses of property within the city, the sale of which would be 38.8subject to the additional sales tax but for the fact such property was sold outside the city. 38.9The tax may not be imposed on gross receipts from sales of intoxicating liquor that are 38.10exempt from taxation under sections to or other provision of chapter 38.11297A exempting sales of intoxicating liquor and use from taxation, including amendments 38.12adopted after enactment of this act new text begin is imposed on the tax base defined in Minnesota new text end 38.13 new text begin Statutes, section 297A.99, subdivision 4, and is subject to the exemptions and credits in new text end 38.14 new text begin Minnesota Statutes, section 297A.99, subdivisions 7 and 8 new text end . 38.15    For purposes of this subdivision, sales that occur within the city shall not include (a) 38.16the sale of tangible personal property (i) which, without intermediate use, is shipped or 38.17transported outside Minneapolis by the purchaser and thereafter used in a trade or business 38.18or is stored, processed, fabricated or manufactured into, attached to or incorporated into 38.19other tangible personal property transported or shipped outside Minneapolis and thereafter 38.20used in a trade or business outside Minneapolis, and which is not thereafter returned to a 38.21point within Minneapolis, except in the course of interstate or intrastate commerce (storage 38.22shall not constitute intermediate use); or (ii) which the seller delivers to a common carrier 38.23for delivery outside Minneapolis, places in the United States mail or parcel post directed 38.24to the purchaser outside Minneapolis, or delivers to the purchaser outside Minneapolis by 38.25means of the seller's own delivery vehicles, and which is not thereafter returned to a point 38.26within Minneapolis, except in the course of interstate or intrastate commerce; or (b) sales 38.27which would be described in clause (e) or (u) of Minnesota Statutes, section 297A.25, 38.28subdivision 1 if the word "Minneapolis" were substituted for the words "Minnesota" or 38.29"state of Minnesota" in such clauses. A tax may be imposed under this section only if 38.30the taxes imposed under section 5 are imposed at the maximum rate allowed under that 38.31section. The tax authorized by this section shall be imposed, new text begin must not be terminated before new text end 38.32 new text begin January 1, 2047. The tax must be imposed new text end and may be adjusted periodically by the city 38.33council new text begin in conformity with Minnesota Statutes, section 297A.99, subdivision 12, new text end such that 38.34the rate imposed, rounded to the next highest one-tenth of one percent, does not exceed 38.35the rate estimated to be required to produce new text begin produces new text end revenue sufficient to finance the 39.1costs new text begin purposes new text end described in subdivision new text begin subdivisions new text end 3 new text begin and 4, and in Minnesota Statutes, new text end 39.2 new text begin section 297A.994, but in no case may the rate exceed one-half of one percent new text end . 39.3    Subd. 2. Enforcement; collection. (a) Except as provided in paragraph (b), 39.4these taxes shall be subject to the same interest new text begin , new text end penalties new text begin , new text end and other rules imposed 39.5under Minnesota Statutes, chapter 297A. The commissioner of revenue may enter into 39.6appropriate agreements with the city to provide for collection of these taxes by the state 39.7on behalf of the city. The commissioner may charge the city a reasonable fee for its 39.8collection from the proceeds of any taxes new text begin , as provided in Minnesota Statutes, section new text end 39.9 new text begin 297A.99, subdivision 11 new text end . 39.10    (b) A taxpayer located outside of the city of Minneapolis who collects use tax under 39.11this section in an amount that does not exceed $10 in a reporting period is not required to 39.12remit that tax until the amount of use tax collected is $10. 39.13    Subd. 3. Use of property. Revenues received new text begin by the city new text end from the tax may only 39.14be used: 39.15    (1) to pay costs of collection; 39.16    (2) new text begin (1) new text end to pay or secure the payment of any principal of, premium or interest on 39.17bonds issued in accordance with this act; 39.18    (3) new text begin (2) new text end to pay costs to acquire, design, equip, construct, improve, maintain, operate, 39.19administer, or promote the convention center or related facilities, new text begin and other capital projects new text end 39.20 new text begin or economic developments under subdivision 4, new text end including financing costs related to them; 39.21    (4) new text begin (3) new text end to pay reasonable and appropriate costs determined by the city to replace 39.22housing and the ice arena removed from the site; 39.23    (5) new text begin (4) new text end to maintain reserves for the foregoing purposes deemed reasonable and 39.24appropriate by the city; and 39.25    (6) new text begin (5) new text end to fund projects new text begin and for other purposes new text end under subdivision 4. 39.26    Money for replacement housing shall be made available by the city only for new 39.27construction, conversion of nonresidential buildings, and for rehabilitation of vacant 39.28residential structures, only if all of the units in the newly constructed building, converted 39.29nonresidential building, or rehabilitated residential structure are to be used for replacement 39.30housing. 39.31    Subd. 4. Minneapolis downtown and neighborhood projects. (a) For revenues 39.32collected in calendar years 2009 and 2010, to the extent that revenues from the tax 39.33authorized in subdivision 1 exceeds the amount needed to fund the purposes in subdivision 39.343, the city may use the excess revenue to fund any city services. The total amount used in 39.35both years for this purpose may not exceed the total amount of aid and credit reductions 40.1under Minnesota Statutes, sections 273.1384 and 477A.011 to 477A.014 in calendar years 40.22008, 2009, and 2010 due to a governor's unallotment or due to statutory reductions. 40.3    (b) Beginning with revenues collected in calendar year 2011, to the extent that 40.4revenues from the tax new text begin taxes new text end authorized in subdivision 1 exceeds new text begin or in section 5 exceed new text end 40.5the amount needed to fund the purposes in subdivision 3, the city may use the excess 40.6revenue in any year to fund capital projects to further residential, cultural, commercial, 40.7and economic development in both downtown Minneapolis and the Minneapolis 40.8neighborhoods new text begin , to fund other city expenditures in support of the basketball arena, other new text end 40.9 new text begin capital projects, or for other economic development, provided the city may direct excess new text end 40.10 new text begin revenue first to convention center debt, operations, capital improvements, and marketing. new text end 40.11 new text begin The city may issue bonds to fund any such projects or improvements using these taxes or new text end 40.12 new text begin any other available city resources to finance or secure the bonds new text end . 40.13    Sec. 3. Laws 1986, chapter 396, section 5, as amended by Laws 2001, First Special 40.14Session chapter 5, article 12, section 87, is amended to read: 40.15    Sec. 5. LIQUOR, LODGING, AND RESTAURANT TAXES. 40.16    The city may, by resolution, levy in addition to taxes authorized by other law: 40.17    (1) a sales tax of not more than three percent on the gross receipts on retail on-sales 40.18of intoxicating liquor and fermented malt beverages described in section 40.19occurring in the new text begin when sold at licensed on-sale liquor establishments located within the new text end 40.20downtown taxing area, provided that this tax may not be imposed if sales of intoxicating 40.21liquor and fermented malt beverages are exempt from taxation under chapter 297A; 40.22    (2) a sales tax of not more than three percent on the gross receipts from the furnishing 40.23for consideration of lodging described in section new text begin for a period of less than 30 days new text end 40.24 new text begin at a hotel, motel, rooming house, tourist court, or trailer camp located within the city new text end by a 40.25hotel or motel which has more than 50 rooms available for lodging; the tax imposed under 40.26this clause shall be at a rate that, when added to the sum of the rate of the sales tax imposed 40.27under Minnesota Statutes, chapter 297A, the rate of the sales tax imposed under section 4, 40.28and the rate of any other taxes on lodging in the city of Minneapolis, equals 13 percent; and 40.29    (3) a sales tax of not more than three percent on the gross receipts on all sales of food 40.30primarily for consumption on or off the premises by restaurants and places of refreshment 40.31as defined by resolution of the city that occur within the downtown taxing area. 40.32 new text begin The taxes authorized by this section must not be terminated before January 1, 2047. The new text end 40.33 new text begin taxes shall be imposed and may be adjusted periodically by the city council such that the new text end 40.34 new text begin rates imposed produce revenue sufficient, together with the tax imposed under section 4, new text end 40.35 new text begin to finance the purposes described in Minnesota Statutes, section 297A.994, and section new text end 41.1 new text begin 4, subdivisions 3 and 4. new text end These taxes shall be applied new text begin , first, as provided in Minnesota new text end 41.2 new text begin Statutes, section 297A.994, subdivision 3, clauses (1) to (3), and then, new text end solely to pay costs 41.3of collection and to pay or new text begin , new text end secure new text begin , maintain, and fund new text end the payment of any principal of, 41.4premium new text begin on, new text end and interest on any bonds or any costs referred to new text begin other purposes new text end in section 4, 41.5subdivision 3 new text begin or 4 new text end . The commissioner of revenue may enter into appropriate agreements 41.6with the city to provide for the collection of these taxes by the state on behalf of the city. 41.7The commissioner may charge the city a reasonable fee for its collection from the proceeds 41.8of any taxes. These taxes shall be subject to the same interest new text begin , new text end penalties new text begin , new text end and enforcement 41.9provisions as the taxes imposed under section new text begin Minnesota Statutes, chapter 297A new text end . 41.10    Sec. 4. new text begin CHARTER LIMITATIONS, REQUIREMENTS NOT TO APPLY. new text end 41.11 new text begin Any amounts expended, indebtedness, or obligation incurred including, but not new text end 41.12 new text begin limited to, the issuance of bonds, or actions taken by the city under this act, are deemed new text end 41.13 new text begin not an expenditure or other use of city resources within the meaning of any law or charter new text end 41.14 new text begin provision. The city may exercise any of its powers under this act to spend, borrow, tax, or new text end 41.15 new text begin incur any form of indebtedness or other obligation for the improvement, including, but not new text end 41.16 new text begin limited to, acquisition, development, construction, or betterment of any public building, new text end 41.17 new text begin stadium, or other capital improvement project, without regard to any charter limitation, new text end 41.18 new text begin requirement, or provision, including any referendum requirement. Any tax exemption new text end 41.19 new text begin established under this act shall be deemed not an expenditure or other use of city resources new text end 41.20 new text begin within the meaning of any charter provision. new text end 41.21    Sec. 5. new text begin SEVERABILITY; SAVINGS. new text end 41.22 new text begin If any part of this article is found to be invalid because it is in conflict with a new text end 41.23 new text begin provision of the Minnesota Constitution or for any other reason, all other provisions of new text end 41.24 new text begin this article shall remain valid and any rights, remedies, and privileges that have been new text end 41.25 new text begin otherwise accrued by this article, shall remain in effect and may be proceeded with and new text end 41.26 new text begin concluded under the provisions of this article. new text end 41.27    Sec. 6. new text begin LOCAL SALES TAX REQUIREMENTS NOT TO APPLY. new text end 41.28 new text begin The taxes authorized under Laws 1986, chapter 396, sections 4 and 5, as amended, new text end 41.29 new text begin are exempt from the requirements of Minnesota Statutes, section 297A.99, subdivisions new text end 41.30 new text begin 2 and 3. new text end 41.31    Sec. 7. new text begin EFFECTIVE DATE; LOCAL APPROVAL. new text end 42.1 new text begin This article is effective the day after the governing body of the city of Minneapolis new text end 42.2 new text begin and its chief clerical officer comply with Minnesota Statutes, section 645.021, subdivisions new text end 42.3 new text begin 2 and 3. Notwithstanding any law to the contrary, the city of Minneapolis and its chief new text end 42.4 new text begin clerical officer have 30 calendar days following final enactment of this act, to comply with new text end 42.5 new text begin Minnesota Statutes, section 645.021, subdivisions 2 and 3. new text end 42.6ARTICLE 4 42.7LAWFUL GAMBLING 42.8    Section 1. Minnesota Statutes 2010, section 297E.01, subdivision 7, is amended to read: 42.9    Subd. 7. Gambling product. "Gambling product" means bingo hard cards, bingo 42.10paper sheets, or linked bingo paper sheets new text begin , or electronic linked bingo games new text end ; pull-tabs; 42.11 new text begin electronic pull-tab games; new text end tipboards; paddle tickets and paddle ticket cards; raffle tickets; 42.12or any other ticket, card, board, placard, device, or token that represents a chance, for 42.13which consideration is paid, to win a prize. 42.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2012. new text end 42.15    Sec. 2. Minnesota Statutes 2010, section 297E.01, subdivision 8, is amended to read: 42.16    Subd. 8. Gross receipts. "Gross receipts" means all receipts derived from lawful 42.17gambling activity including, but not limited to, the following items: 42.18(1) gross sales of bingo hard cards and new text begin , new text end paper sheets new text begin , linked bingo paper sheets, and new text end 42.19 new text begin electronic linked bingo games new text end before reduction for prizes, expenses, shortages, free plays, 42.20or any other charges or offsets; 42.21(2) the ideal gross of pull-tab new text begin , electronic pull-tab games, new text end and tipboard deals or games 42.22less the value of unsold and defective tickets and before reduction for prizes, expenses, 42.23shortages, free plays, or any other charges or offsets; 42.24(3) gross sales of raffle tickets and paddle tickets before reduction for prizes, 42.25expenses, shortages, free plays, or any other charges or offsets; 42.26(4) admission, commission, cover, or other charges imposed on participants in 42.27lawful gambling activity as a condition for or cost of participation; and 42.28(5) interest, dividends, annuities, profit from transactions, or other income derived 42.29from the accumulation or use of gambling proceeds. 42.30Gross receipts does not include proceeds from rental under section 349.18, 42.31subdivision 3 . 42.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2012. new text end 43.1    Sec. 3. Minnesota Statutes 2010, section 297E.01, subdivision 9, is amended to read: 43.2    Subd. 9. Ideal gross. "Ideal gross" means the total amount of receipts that would be 43.3received if every individual ticket in the pull-tab new text begin , electronic pull-tab games new text end or tipboard 43.4deal new text begin , paddle wheel game, and raffle ticket new text end was sold at its face value. In the calculation 43.5of ideal gross and prizes, a free play ticket new text begin pull-tab or electronic pull-tab new text end shall be valued 43.6at face value. new text begin Ideal gross also means the total amount of receipts that would be received new text end 43.7 new text begin if every bingo paper sheet, linked bingo paper sheet, and electronic linked bingo games new text end 43.8 new text begin were sold at face value. new text end 43.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2012. new text end 43.10    Sec. 4. Minnesota Statutes 2010, section 297E.02, subdivision 1, is amended to read: 43.11    Subdivision 1. Imposition. A tax is imposed on all lawful gambling other than (1) 43.12 new text begin paper or electronic new text end pull-tab deals or games; (2) tipboard deals or games; and (3) new text begin electronic new text end 43.13 new text begin linked bingo; and (4) new text end items listed in section 297E.01, subdivision 8, clauses (4) and (5), at 43.14the rate of 8.5 percent on the gross receipts as defined in section 297E.01, subdivision 8, 43.15less prizes actually paid. The tax imposed by this subdivision is in lieu of the tax imposed 43.16by section 297A.62 and all local taxes and license fees except a fee authorized under 43.17section 349.16, subdivision 8, or a tax authorized under subdivision 5. 43.18The tax imposed under this subdivision is payable by the organization or party 43.19conducting, directly or indirectly, the gambling. 43.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for games reported as played after new text end 43.21 new text begin June 30, 2012. new text end 43.22    Sec. 5. Minnesota Statutes 2010, section 297E.02, subdivision 3, is amended to read: 43.23    Subd. 3. Collection; disposition. new text begin (a) new text end Taxes imposed by this section other than in 43.24subdivision 4 are due and payable to the commissioner when the gambling tax return 43.25is required to be filed. Taxes imposed by subdivision 4 are due and payable to the 43.26commissioner on or before the last business day of the month following the month in 43.27which the taxable sale was made. new text begin Distributors must file their monthly sales figures with new text end 43.28 new text begin the commissioner on a form prescribed by the commissioner. new text end Returns covering the taxes 43.29imposed under this section must be filed with the commissioner on or before the 20th day 43.30of the month following the close of the previous calendar month. The commissioner 43.31may require that the returns be filed via magnetic media or electronic data transfer. The 43.32proceeds, along with the revenue received from all license fees and other fees under 44.1sections 349.11 to 349.191, 349.211, and 349.213, must be paid to the commissioner of 44.2management and budget for deposit in the general fund. 44.3 new text begin (b) The sales tax imposed by chapter 297A on the sale of pull-tabs and tipboards by new text end 44.4 new text begin the distributor is imposed on the retail sales price. The retail sale of pull-tabs or tipboards new text end 44.5 new text begin by the organization is exempt from taxes imposed by chapter 297A and is exempt from all new text end 44.6 new text begin local taxes and license fees except a fee authorized under section 349.16, subdivision 8. new text end 44.7 new text begin (c) One-half of one percent of the revenue deposited in the general fund under new text end 44.8 new text begin paragraph (a), is appropriated to the commissioner of human services for the compulsive new text end 44.9 new text begin gambling treatment program established under section 245.98. One-half of one percent new text end 44.10 new text begin of the revenue deposited in the general fund under paragraph (a), is appropriated to new text end 44.11 new text begin the commissioner of human services for a grant to the state affiliate recognized by new text end 44.12 new text begin the National Council on Problem Gambling to increase public awareness of problem new text end 44.13 new text begin gambling, education and training for individuals and organizations providing effective new text end 44.14 new text begin treatment services to problem gamblers and their families, and research relating to problem new text end 44.15 new text begin gambling. Money appropriated by this paragraph must supplement and must not replace new text end 44.16 new text begin existing state funding for these programs. new text end 44.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2012. new text end 44.18    Sec. 6. Minnesota Statutes 2010, section 297E.02, subdivision 6, is amended to read: 44.19    Subd. 6. Combined new text begin net new text end receipts tax. new text begin (a) new text end In addition to the taxes imposed under 44.20subdivisions 1 and 4, a tax is imposed on the combined receipts of the organization. As 44.21used in this section, "combined new text begin net new text end receipts" is the sum of the organization's gross receipts 44.22from lawful gambling less gross receipts directly derived from the conduct of new text begin paper new text end bingo, 44.23raffles, and paddle wheels, as defined in section 297E.01, subdivision 8, new text begin and less the net new text end 44.24 new text begin prizes actually paid, other than prizes actually paid for paper bingo, raffles, and paddle new text end 44.25 new text begin wheels, new text end for the fiscal year. The combined new text begin net new text end receipts of an organization are subject to a 44.26tax computed according to the following schedule: 44.27 44.28 44.29 If the combined new text begin net new text end receipts for the fiscal year are: The tax is: 44.30 Not over $500,000 new text begin $87,500 new text end zero new text begin nine percent new text end 44.31 44.32 44.33 Over $500,000 new text begin $87,500 new text end , but not over $700,000 new text begin $122,500 new text end 1.7 new text begin $7,875 plus 18 new text end percent of the amount over $500,000 new text begin $87,500 new text end , but not over $700,000 new text begin $122,500 new text end 45.1 45.2 45.3 Over $700,000 new text begin $122,500 new text end , but not over $900,000 new text begin $157,500 new text end $3,400 new text begin $14,175 new text end plus 3.4 new text begin 27 new text end percent of the amount over $700,000 new text begin $122,500 new text end , but not over $900,000 new text begin $157,500 new text end 45.4 45.5 45.6 Over $900,000 new text begin $157,500 new text end $10,200 new text begin $23,625 new text end plus 5.1 new text begin 36 new text end percent of the amount over $900,000 new text begin $157,500 new text end 45.7 new text begin (b) On or before April 1, 2016, the commissioner shall estimate the total amount of new text end 45.8 new text begin revenue, including interest and penalties, that will be collected for fiscal year 2016 from new text end 45.9 new text begin taxes imposed under this chapter. If the amount estimated by the commissioner equals new text end 45.10 new text begin or exceeds $94,800,000, the commissioner shall certify that effective July 1, 2016, the new text end 45.11 new text begin rates under this paragraph apply in lieu of the rates under paragraph (a) and shall publish a new text end 45.12 new text begin notice to that effect in the state register and notify each taxpayer by June 1, 2016. If the new text end 45.13 new text begin rates under this section apply, the combined net receipts of an organization are subject to a new text end 45.14 new text begin tax computed according to the following schedule: new text end 45.15 45.16 45.17 new text begin If the combined net new text end new text begin receipts for the fiscal year new text end new text begin are: new text end new text begin The tax is: new text end 45.18 new text begin Not over $87,500 new text end new text begin 8.5 percent new text end 45.19 45.20 new text begin Over $87,500, but not over new text end new text begin $122,500 new text end new text begin $7,438 plus 17 percent of the amount new text end new text begin over $87,500, but not over $122,500 new text end 45.21 45.22 45.23 new text begin Over $122,500, but not new text end new text begin over $157,500 new text end new text begin $13,388 plus 25.5 percent of the new text end new text begin amount over $122,500, but not over new text end new text begin $157,500 new text end 45.24 45.25 new text begin Over $157,500 new text end new text begin $22,313 plus 34 percent of the new text end new text begin amount over $157,500 new text end 45.26 new text begin (c) Gross receipts derived from sports-themed tipboards are exempt from taxation new text end 45.27 new text begin under this section. For purposes of this paragraph, a sports-themed tipboard means a new text end 45.28 new text begin sports-themed tipboard as defined in section 349.12, subdivision 34, under which the new text end 45.29 new text begin winning numbers are determined by the numerical outcome of a professional sporting new text end 45.30 new text begin event. new text end 45.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2012. new text end 45.32    Sec. 7. Minnesota Statutes 2010, section 297E.02, is amended by adding a subdivision 45.33to read: 45.34     new text begin Subd. 6a. new text end new text begin Unaccounted games. new text end new text begin If a licensed distributor cannot account for a new text end 45.35 new text begin pull-tab game, an electronic pull-tab game, a tipboard deal, paddletickets, an electronic new text end 45.36 new text begin linked bingo game, bingo paper sheets, or linked bingo paper sheets, the distributor must new text end 45.37 new text begin report the sheets or games to the commissioner as lost and remit a tax of six percent new text end 45.38 new text begin on the ideal gross of the sheets or games. new text end 46.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2012. new text end 46.2    Sec. 8. Minnesota Statutes 2010, section 297E.02, subdivision 7, is amended to read: 46.3    Subd. 7. Untaxed gambling product. (a) In addition to penalties or criminal 46.4sanctions imposed by this chapter, a person, organization, or business entity possessing or 46.5selling a pull-tab new text begin , electronic pull-tab game new text end or tipboard upon which the tax imposed by 46.6subdivision 4 new text begin this chapter new text end has not been paid is liable for a tax of six percent of the ideal 46.7gross of each pull-tab new text begin , electronic pull-tab game, new text end or tipboard. The tax on a partial deal 46.8must be assessed as if it were a full deal. 46.9(b) In addition to penalties and criminal sanctions imposed by this chapter, a person 46.10not licensed by the board who conducts bingo, new text begin linked bingo, electronic linked bingo, new text end 46.11raffles, or paddle wheel games is liable for a tax of six percent of the gross receipts 46.12from that activity. 46.13(c) The tax must be assessed by the commissioner. An assessment must be 46.14considered a jeopardy assessment or jeopardy collection as provided in section 270C.36. 46.15The commissioner shall assess the tax based on personal knowledge or information 46.16available to the commissioner. The commissioner shall mail to the taxpayer at the 46.17taxpayer's last known address, or serve in person, a written notice of the amount of tax, 46.18demand its immediate payment, and, if payment is not immediately made, collect the tax 46.19by any method described in chapter 270C, except that the commissioner need not await the 46.20expiration of the times specified in chapter 270C. The tax assessed by the commissioner 46.21is presumed to be valid and correctly determined and assessed. The burden is upon the 46.22taxpayer to show its incorrectness or invalidity. The tax imposed under this subdivision 46.23does not apply to gambling that is exempt from taxation under subdivision 2. 46.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2012. new text end 46.25    Sec. 9. Minnesota Statutes 2010, section 297E.02, subdivision 10, is amended to read: 46.26    Subd. 10. Refunds; appropriation. A person who has, under this chapter, paid 46.27to the commissioner an amount of tax for a period in excess of the amount legally due 46.28for that period, may file with the commissioner a claim for a refund of the excess. The 46.29amount necessary to pay the refunds under this subdivision and subdivision 4, paragraph 46.30(d), is appropriated from the general fund to the commissioner. 46.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2012. new text end 46.32    Sec. 10. Minnesota Statutes 2010, section 297E.02, subdivision 11, is amended to read: 47.1    Subd. 11. Unplayed or Defective pull-tabs or tipboards new text begin gambling products new text end . If a 47.2deal of pull-tabs or tipboards registered with the board or bar coded in accordance with this 47.3chapter and chapter 349 and upon which the tax imposed by subdivision 4 has been paid is 47.4returned unplayed to the distributor, the commissioner shall allow a refund of the tax paid. 47.5If a defective deal registered with the board or bar coded in accordance with this 47.6chapter and chapter 349 and upon which the taxes have been paid is returned to the 47.7manufacturer, the distributor shall submit to the commissioner of revenue certification 47.8from the manufacturer that the deal was returned and in what respect it was defective. 47.9The certification must be on a form prescribed by the commissioner and must contain 47.10additional information the commissioner requires. 47.11The commissioner may require that no refund under this subdivision be made 47.12unless the new text begin that all defective and new text end returned pull-tabs or new text begin , new text end tipboards have been new text begin , paddle tickets, new text end 47.13 new text begin paper bingo sheets, and linked bingo paper sheets be new text end set aside for inspection by the 47.14commissioner's employee. 47.15Reductions in previously paid taxes authorized by this subdivision must be made 47.16when and in the manner prescribed by the commissioner. 47.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for games sold by a licensed new text end 47.18 new text begin distributor after June 30, 2012. new text end 47.19    Sec. 11. new text begin [297E.021] SPECIAL ALLOCATION OF REVENUES. new text end 47.20     new text begin Subdivision 1. new text end new text begin Application; revenues not pledged. new text end new text begin The provisions of this new text end 47.21 new text begin subdivision apply only after the issuance of appropriation bonds under section 16A.965, new text end 47.22 new text begin subdivision 2, but do not constitute a pledge of available revenues as security for payment new text end 47.23 new text begin of principal and interest on appropriation bonds issued under section 16A.965. new text end 47.24     new text begin Subd. 2. new text end new text begin Determination of revenue increase. new text end new text begin By March 15 of each fiscal year, new text end 47.25 new text begin the commissioner of management and budget, in consultation with the commissioner, new text end 47.26 new text begin shall determine the estimated increase in revenues received from taxes imposed under new text end 47.27 new text begin this chapter over the estimated revenues under the February 2012 state budget forecast for new text end 47.28 new text begin that fiscal year. For fiscal years after fiscal year 2015, the commissioner of management new text end 47.29 new text begin and budget shall use the February 2012 state budget forecast for fiscal year 2015 as the new text end 47.30 new text begin baseline. All calculations under this subdivision must be made net of estimated refunds new text end 47.31 new text begin of the taxes required to be paid. new text end 47.32     new text begin Subd. 3. new text end new text begin Available revenues. new text end new text begin For purposes of this section, "available revenues" new text end 47.33 new text begin equals the amount determined under subdivision 2: new text end 47.34 new text begin (1) reduced by the following amounts paid for the fiscal year under: new text end 48.1     new text begin (i) the appropriation to principal and interest on appropriation bonds under section new text end 48.2 new text begin 16A.965, subdivision 8; new text end 48.3     new text begin (ii) the appropriation from the general fund to make operating expense payments new text end 48.4 new text begin under section 473J.13, subdivision 2, paragraph (b); new text end 48.5     new text begin (iii) the appropriation for contributions to the capital reserve fund under section new text end 48.6 new text begin 473J.13, subdivision 4, paragraph (c); new text end 48.7     new text begin (iv) the appropriations under this article for administration and any successor new text end 48.8 new text begin appropriation; new text end 48.9     new text begin (v) the reduction in revenues resulting from the sales tax exemptions under section new text end 48.10 new text begin 297A.71, subdivision 43; new text end 48.11     new text begin (vi) reimbursements authorized by section 473J.15, subdivision 2, paragraph (d); new text end 48.12     new text begin (vii) the compulsive gambling appropriations under section 297E.02, subdivision 3, new text end 48.13 new text begin paragraph (c), and any successor appropriation; and new text end 48.14 new text begin (viii) the appropriation for the city of St. Paul under section 16A.726, paragraph new text end 48.15 new text begin (c); and new text end 48.16     new text begin (2) increased by the revenue deposited in the general fund under section 297A.994, new text end 48.17 new text begin subdivision 4, clauses (1) to (3), for the fiscal year. new text end 48.18     new text begin Subd. 4. new text end new text begin Appropriation; general reserve account. new text end new text begin To the extent the commissioner new text end 48.19 new text begin determines that revenues are available under subdivision 3 for the fiscal year, those new text end 48.20 new text begin amounts are appropriated from the general fund for deposit in a general reserve account new text end 48.21 new text begin established by order of the commissioner of management and budget. Amounts in new text end 48.22 new text begin this reserve are appropriated as necessary for application against any shortfall in the new text end 48.23 new text begin amounts deposited to the general fund under section 297A.994 or, after consultation with new text end 48.24 new text begin the legislative commission on planning and fiscal policy, amounts in this reserve are new text end 48.25 new text begin appropriated to the commissioner of management and budget for other uses related to the new text end 48.26 new text begin stadium authorized under section 473J.03, subdivision 7, that the commissioner deems new text end 48.27 new text begin financially prudent including but not limited to reimbursements for capital and operating new text end 48.28 new text begin costs relating to the stadium, refundings, and prepayment of debt. In no event, shall new text end 48.29 new text begin available revenues be pledged, nor shall the appropriations of available revenues made by new text end 48.30 new text begin this section constitute a pledge of available revenues as security for the prepayment of new text end 48.31 new text begin principal and interest on the appropriation bonds under section 16A.965. new text end 48.32    Sec. 12. Minnesota Statutes 2010, section 297E.13, subdivision 5, is amended to read: 48.33    Subd. 5. Untaxed gambling equipment. It is a gross misdemeanor for a person to 48.34possess gambling equipment for resale in this state that has not been stamped or bar-coded 48.35in accordance with this chapter and chapter 349 and upon which the taxes imposed by 49.1chapter 297A or section 297E.02, subdivision 4, have not been paid. The director of 49.2alcohol and gambling enforcement or the commissioner or the designated inspectors 49.3and employees of the director or commissioner may seize in the name of the state of 49.4Minnesota any unregistered or untaxed gambling equipment. 49.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for actions occurring after June new text end 49.6 new text begin 30, 2012. new text end 49.7    Sec. 13. Minnesota Statutes 2010, section 349.12, subdivision 3b, is amended to read: 49.8    Subd. 3b. Bar operation. "Bar operation" means a method of selling and redeeming 49.9 new text begin disposable new text end gambling equipment new text begin by an employee of the lessor new text end within a leased premises 49.10which is licensed for the on-sale of alcoholic beverages where such sales and redemptions 49.11are made by an employee of the lessor from a common area where food and beverages 49.12are also sold. 49.13    Sec. 14. Minnesota Statutes 2010, section 349.12, subdivision 3c, is amended to read: 49.14    Subd. 3c. Bar bingo. "Bar bingo" is a bingo occasion conducted at a permitted 49.15premises in an area where intoxicating liquor or 3.2 percent malt beverages are sold and 49.16where the licensed organization conducts another form of lawful gambling. new text begin Bar bingo new text end 49.17 new text begin does not include bingo games linked to other permitted premises. new text end 49.18    Sec. 15. Minnesota Statutes 2010, section 349.12, subdivision 5, is amended to read: 49.19    Subd. 5. Bingo occasion. "Bingo occasion" means a single gathering or session at 49.20which a series of one or more successive bingo games is played. There is no limit on the 49.21number of games conducted during a bingo occasion but new text begin . new text end A bingo occasion must not last 49.22longer than eight consecutive hours. new text begin , except that linked bingo games played on electronic new text end 49.23 new text begin bingo devices may be played during regular business hours of the permitted premises, new text end 49.24 new text begin and all play during this period is considered a bingo occasion for reporting purposes. For new text end 49.25 new text begin permitted premises where the primary business is bingo, regular business hours shall be new text end 49.26 new text begin defined as the hours between 8:00 a.m. and 2:00 a.m. new text end 49.27    Sec. 16. Minnesota Statutes 2010, section 349.12, subdivision 6a, is amended to read: 49.28    Subd. 6a. Booth operation. "Booth operation" means a method of selling and 49.29redeeming new text begin disposable new text end gambling equipment by an employee of a licensed organization in 49.30a premises the organization leases or owns where such sales and redemptions are made 49.31within a separate enclosure that is distinct from areas where food and beverages are sold. 50.1    Sec. 17. Minnesota Statutes 2010, section 349.12, subdivision 12a, is amended to read: 50.2    Subd. 12a. Electronic bingo device. "Electronic bingo device" means an new text begin a new text end 50.3 new text begin handheld and portable new text end electronic device new text begin that: new text end 50.4 new text begin (a) is new text end used by a bingo player to new text begin : new text end 50.5 new text begin (1) new text end monitor bingo paper sheets or a facsimile of a bingo paper sheet when purchased 50.6 new text begin and played new text end at the time and place of an organization's bingo occasion and which (1) 50.7provides a means for bingo players to new text begin , or to play an electronic bingo game that is linked new text end 50.8 new text begin with other permitted premises; new text end 50.9 new text begin (2) new text end activate numbers announced by a bingo caller; (2) compares new text begin or displayed, and new text end 50.10 new text begin to compare new text end the numbers entered by the player to the bingo faces previously stored in 50.11the memory of the device; and 50.12(3) identifies new text begin identify new text end a winning bingo pattern. new text begin or game requirement; and new text end 50.13 new text begin (4) play against other bingo players; new text end 50.14 new text begin (b) limits the play of bingo faces to 36 faces per game; new text end 50.15 new text begin (c) requires coded entry to activate play but does not allow the use of a coin, new text end 50.16 new text begin currency, or tokens to be inserted to activate play; new text end 50.17 new text begin (d) may only be used for play against other bingo players in a bingo game; new text end 50.18 new text begin (e) has no additional function as an amusement or gambling device other than as an new text end 50.19 new text begin electronic pull-tab game defined under section 349.12, subdivision 12c; new text end 50.20 new text begin (f) has the capability to ensure adequate levels of security internal controls; new text end 50.21 new text begin (g) has the capability to permit the board to electronically monitor the operation of new text end 50.22 new text begin the device and the internal accounting systems; and new text end 50.23 new text begin (h) has the capability to allow use by a player who is visually impaired. new text end 50.24Electronic bingo device does not mean any device into which coin, currency, or tokens are 50.25inserted to activate play. 50.26    Sec. 18. Minnesota Statutes 2010, section 349.12, is amended by adding a subdivision 50.27to read: 50.28     new text begin Subd. 12b. new text end new text begin Electronic pull-tab device. new text end new text begin "Electronic pull-tab device" means a new text end 50.29 new text begin handheld and portable electronic device that: new text end 50.30 new text begin (1) is used to play one or more electronic pull-tab games; new text end 50.31 new text begin (2) requires coded entry to activate play but does not allow the use of coin, currency, new text end 50.32 new text begin or tokens to be inserted to activate play; new text end 50.33 new text begin (3) requires that a player must activate or open each electronic pull-tab ticket and new text end 50.34 new text begin each individual line, row, or column of each electronic pull-tab ticket; new text end 51.1 new text begin (4) maintains information pertaining to accumulated win credits that may be applied new text end 51.2 new text begin to games in play or redeemed upon termination of play; new text end 51.3 new text begin (5) has no spinning reels or other representations that mimic a video slot machine; new text end 51.4 new text begin (6) has no additional function as a gambling device other than as an electronic-linked new text end 51.5 new text begin bingo game played on a device defined under section 349.12, subdivision 12a; new text end 51.6 new text begin (7) may incorporate an amusement game feature as part of the pull-tab game but new text end 51.7 new text begin may not require additional consideration for that feature or award any prize, or other new text end 51.8 new text begin benefit for that feature; new text end 51.9 new text begin (8) may have auditory or visual enhancements to promote or provide information new text end 51.10 new text begin about the game being played, provided the component does not affect the outcome of new text end 51.11 new text begin a game or display the results of a game; new text end 51.12 new text begin (9) maintains, on nonresettable meters, a printable, permanent record of all new text end 51.13 new text begin transactions involving each device and electronic pull-tab games played on the device; new text end 51.14 new text begin (10) is not a pull-tab dispensing device as defined under subdivision 32a; and new text end 51.15     new text begin (11) has the capability to allow use by a player who is visually impaired. new text end 51.16    Sec. 19. Minnesota Statutes 2010, section 349.12, is amended by adding a subdivision 51.17to read: 51.18     new text begin Subd. 12c. new text end new text begin Electronic pull-tab game. new text end new text begin "Electronic pull-tab game" means a pull-tab new text end 51.19 new text begin game containing: new text end 51.20 new text begin (a) facsimiles of pull-tab tickets that are played on an electronic pull-tab device; new text end 51.21 new text begin (b) a predetermined, finite number of winning and losing tickets, not to exceed new text end 51.22 new text begin 7,500 tickets; new text end 51.23 new text begin (c) the same price for each ticket in the game; new text end 51.24 new text begin (d) a price paid by the player of not less than 25 cents per ticket; new text end 51.25 new text begin (e) tickets that are in conformance with applicable board rules for pull-tabs; new text end 51.26 new text begin (f) winning tickets that comply with prize limits under section 349.211; new text end 51.27 new text begin (g) a unique serial number that may not be regenerated; new text end 51.28 new text begin (h) an electronic flare that displays the game name, form number, predetermined, new text end 51.29 new text begin finite number of tickets in the game, and prize tier; and new text end 51.30 new text begin (i) no spinning reels or other representations that mimic a video slot machine. new text end 51.31    Sec. 20. Minnesota Statutes 2010, section 349.12, is amended by adding a subdivision 51.32to read: 51.33     new text begin Subd. 12d. new text end new text begin Electronic pull-tab game system. new text end new text begin "Electronic pull-tab game system" new text end 51.34 new text begin means the equipment leased from a licensed distributor and used by a licensed organization new text end 52.1 new text begin to conduct, manage, and record electronic pull-tab games, and to report and transmit the new text end 52.2 new text begin game results as prescribed by the board and the Department of Revenue. The system must new text end 52.3 new text begin provide security and access levels sufficient so that internal control objectives are met as new text end 52.4 new text begin prescribed by the board. The system must contain a point of sale station. new text end 52.5    Sec. 21. Minnesota Statutes 2010, section 349.12, is amended by adding a subdivision 52.6to read: 52.7     new text begin Subd. 15b. new text end new text begin 501(c)(19) organization. new text end new text begin "501(c)(19) organization" is an organization new text end 52.8 new text begin exempt from the payment of federal income taxes under section 501(c)(19) of the Internal new text end 52.9 new text begin Revenue Code. new text end 52.10    Sec. 22. Minnesota Statutes 2010, section 349.12, subdivision 18, is amended to read: 52.11    Subd. 18. Gambling equipment. "Gambling equipment" means: new text begin gambling new text end 52.12 new text begin equipment that is either disposable or permanent gambling equipment. new text end 52.13 new text begin (a) Disposable gambling equipment includes the following: new text end 52.14 new text begin (1) new text end bingo hard cards or paper sheets, new text begin including new text end linked bingo paper sheets, devices for 52.15selecting bingo numbers, electronic bingo devices, new text begin ; new text end 52.16 new text begin (2) paper and electronic new text end pull-tabs, new text begin ; new text end 52.17 new text begin (3) new text end jar tickets, paddle wheels, paddle wheel tables, new text begin ; new text end 52.18 new text begin (4) new text end paddle tickets, new text begin and new text end paddle ticket cards, new text begin ; new text end 52.19 new text begin (5) new text end tipboards, new text begin and new text end tipboard tickets, new text begin ; and new text end 52.20 new text begin (6) new text end promotional tickets that mimic a pull-tab or tipboard, pull-tab dispensing devices, 52.21and programmable electronic devices that have no effect on the outcome of a game and 52.22are used to provide a visual or auditory enhancement of a game. 52.23 new text begin (b) Permanent gambling equipment includes the following: new text end 52.24 new text begin (1) devices for selecting bingo numbers; new text end 52.25 new text begin (2) electronic bingo devices; new text end 52.26 new text begin (3) electronic pull-tab devices; new text end 52.27 new text begin (4) pull-tab dispensing devices; new text end 52.28 new text begin (5) programmable electronic devices that have no effect on the outcome of a game new text end 52.29 new text begin and are used to provide a visual or auditory enhancement of a game; new text end 52.30 new text begin (6) paddle wheels; and new text end 52.31 new text begin (7) paddle wheel tables. new text end 52.32    Sec. 23. Minnesota Statutes 2010, section 349.12, subdivision 25, is amended to read: 53.1    Subd. 25. Lawful purpose. (a) "Lawful purpose" means one or more of the 53.2following: 53.3    (1) any expenditure by or contribution to a 501(c)(3) or festival organization, as 53.4defined in subdivision 15a, provided that the organization and expenditure or contribution 53.5are in conformity with standards prescribed by the board under section 349.154, which 53.6standards must apply to both types of organizations in the same manner and to the same 53.7extent; 53.8    (2) a contribution to or expenditure for goods and services for an individual or 53.9family suffering from poverty, homelessness, or disability, which is used to relieve the 53.10effects of that suffering; 53.11    (3) a contribution to a program recognized by the Minnesota Department of Human 53.12Services for the education, prevention, or treatment of problem gambling; 53.13    (4) a contribution to or expenditure on a public or private nonprofit educational 53.14institution registered with or accredited by this state or any other state; 53.15    (5) a contribution to an individual, public or private nonprofit educational institution 53.16registered with or accredited by this state or any other state, or to a scholarship fund of a 53.17nonprofit organization whose primary mission is to award scholarships, for defraying the 53.18cost of education to individuals where the funds are awarded through an open and fair 53.19selection process; 53.20    (6) activities by an organization or a government entity which recognize military 53.21service to the United States, the state of Minnesota, or a community, subject to rules 53.22of the board, provided that the rules must not include mileage reimbursements in the 53.23computation of the per diem reimbursement limit and must impose no aggregate annual 53.24limit on the amount of reasonable and necessary expenditures made to support: 53.25    (i) members of a military marching or color guard unit for activities conducted 53.26within the state; 53.27    (ii) members of an organization solely for services performed by the members at 53.28funeral services; 53.29    (iii) members of military marching, color guard, or honor guard units may be 53.30reimbursed for participating in color guard, honor guard, or marching unit events within 53.31the state or states contiguous to Minnesota at a per participant rate of up to $35 per diem; or 53.32    (iv) active military personnel and their immediate family members in need of 53.33support services; 53.34    (7) recreational, community, and athletic facilities and activities intended primarily 53.35for persons under age 21, provided that such facilities and activities do not discriminate on 53.36the basis of gender and the organization complies with section 349.154, subdivision 3a; 54.1    (8) payment of local taxes authorized under this chapter, taxes imposed by the 54.2United States on receipts from lawful gambling, the taxes imposed by section 297E.02, 54.3subdivisions 1, 4, 5, and 6, and the tax imposed on unrelated business income by section 54.4290.05, subdivision 3 ; 54.5    (9) payment of real estate taxes and assessments on permitted gambling premises 54.6owned by the licensed organization paying the taxes, or wholly leased by a licensed 54.7veterans organization under a national charter recognized under section 501(c)(19) of the 54.8Internal Revenue Code; 54.9    (10) a contribution to the United States, this state or any of its political subdivisions, 54.10or any agency or instrumentality thereof other than a direct contribution to a law 54.11enforcement or prosecutorial agency; 54.12    (11) a contribution to or expenditure by a nonprofit organization which is a church 54.13or body of communicants gathered in common membership for mutual support and 54.14edification in piety, worship, or religious observances; 54.15    (12) an expenditure for citizen monitoring of surface water quality by individuals 54.16or nongovernmental organizations that is consistent with section 115.06, subdivision 4, 54.17and Minnesota Pollution Control Agency guidance on monitoring procedures, quality 54.18assurance protocols, and data management, provided that the resulting data is submitted 54.19to the Minnesota Pollution Control Agency for review and inclusion in the state water 54.20quality database; 54.21    (13) a contribution to or expenditure on projects or activities approved by the 54.22commissioner of natural resources for: 54.23    (i) wildlife management projects that benefit the public at large; 54.24    (ii) grant-in-aid trail maintenance and grooming established under sections 84.83 54.25and 84.927, and other trails open to public use, including purchase or lease of equipment 54.26for this purpose; and 54.27    (iii) supplies and materials for safety training and educational programs coordinated 54.28by the Department of Natural Resources, including the Enforcement Division; 54.29    (14) conducting nutritional programs, food shelves, and congregate dining programs 54.30primarily for persons who are age 62 or older or disabled; 54.31    (15) a contribution to a community arts organization, or an expenditure to sponsor 54.32arts programs in the community, including but not limited to visual, literary, performing, 54.33or musical arts; 54.34    (16) an expenditure by a licensed fraternal organization or a licensed veterans 54.35organization for payment of water, fuel for heating, electricity, and sewer costs for: 55.1(i) up to 100 percent for a building wholly owned or wholly leased by and used as 55.2the primary headquarters of the licensed veteran or fraternal organization; or 55.3(ii) a proportional amount subject to approval by the director and based on the 55.4portion of a building used as the primary headquarters of the licensed veteran or fraternal 55.5organization; 55.6    (17) expenditure by a licensed veterans organization of up to $5,000 in a calendar 55.7year in net costs to the organization for meals and other membership events, limited to 55.8members and spouses, held in recognition of military service. No more than $5,000 can be 55.9expended in total per calendar year under this clause by all licensed veterans organizations 55.10sharing the same veterans post home; 55.11    (18) payment of fees authorized under this chapter imposed by the state of Minnesota 55.12to conduct lawful gambling in Minnesota; 55.13    (19) a contribution or expenditure to honor an individual's humanitarian service 55.14as demonstrated through philanthropy or volunteerism to the United States, this state, 55.15or local community; 55.16(20) a contribution by a licensed organization to another licensed organization with 55.17prior board approval, with the contribution designated to be used for one or more of the 55.18following lawful purposes under this section: clauses (1) to (7), (11) to (15), (19), and (25); 55.19(21) an expenditure that is a contribution to a parent organization, if the parent 55.20organization: (i) has not provided to the contributing organization within one year of the 55.21contribution any money, grants, property, or other thing of value, and (ii) has received 55.22prior board approval for the contribution that will be used for a program that meets one or 55.23more of the lawful purposes under subdivision 7a; 55.24(22) an expenditure for the repair, maintenance, or improvement of real property 55.25and capital assets owned by an organization, or for the replacement of a capital asset that 55.26can no longer be repaired, with a fiscal year limit of five percent of gross profits from 55.27the previous fiscal year, with no carryforward of unused allowances. The fiscal year is 55.28July 1 through June 30. Total expenditures for the fiscal year may not exceed the limit 55.29unless the board has specifically approved the expenditures that exceed the limit due to 55.30extenuating circumstances beyond the organization's control. An expansion of a building 55.31or bar-related expenditures are not allowed under this provision. 55.32(i) The expenditure must be related to the portion of the real property or capital asset 55.33that must be made available for use free of any charge to other nonprofit organizations, 55.34community groups, or service groups, or new text begin new text end new text begin and new text end is used for the organization's primary 55.35mission or headquarters. 56.1(ii) An expenditure may be made to bring an existing building that the organization 56.2owns into compliance with the Americans with Disabilities Act. 56.3(iii) An organization may apply the amount that is allowed under item (ii) to the 56.4erection or acquisition of a replacement building that is in compliance with the Americans 56.5with Disabilities Act if the board has specifically approved the amount. The cost of 56.6the erection or acquisition of a replacement building may not be made from gambling 56.7proceeds, except for the portion allowed under this item; 56.8(23) an expenditure for the acquisition or improvement of a capital asset with a cost 56.9greater than $2,000, excluding real property, that will be used exclusively for lawful 56.10purposes under this section if the board has specifically approved the amount; 56.11(24) an expenditure for the acquisition, erection, improvement, or expansion of real 56.12property, if the board has first specifically authorized the expenditure after finding that the 56.13real property will be used exclusively for lawful purpose under this section; or 56.14(25) an expenditure, including a mortgage payment or other debt service payment, 56.15for the erection or acquisition of a comparable building to replace an organization-owned 56.16building that was destroyed or made uninhabitable by fire or catastrophe or to replace an 56.17organization-owned building that was taken or sold under an eminent domain proceeding. 56.18The expenditure may be only for that part of the replacement cost not reimbursed by 56.19insurance for the fire or catastrophe or compensation not received from a governmental 56.20unit under the eminent domain proceeding, if the board has first specifically authorized 56.21the expenditure. new text begin ; or new text end 56.22 new text begin (26) a contribution to a 501(c)(19) organization that does not have an organization new text end 56.23 new text begin license under section 349.16 and is not affiliated with the contributing organization, and new text end 56.24 new text begin whose owned or leased property is not a permitted premises under section 349.165. The new text end 56.25 new text begin 501(c)(19) organization may only use the contribution for lawful purposes under this new text end 56.26 new text begin subdivision or for the organization's primary mission. The 501(c)(19) organization may new text end 56.27 new text begin not use the contribution for expansion of a building or for bar-related expenditures. A new text end 56.28 new text begin contribution may not be made to a statewide organization representing a consortia of new text end 56.29 new text begin 501(c)(19) organizations. new text end 56.30(b) Expenditures authorized by the board under clauses (24) and (25) must be 56.3151 percent completed within two years of the date of board approval; otherwise the 56.32organization must reapply to the board for approval of the project. "Fifty-one percent 56.33completed" means that the work completed must represent at least 51 percent of the value 56.34of the project as documented by the contractor or vendor. 56.35    (c) Notwithstanding paragraph (a), "lawful purpose" does not include: 57.1    (1) any expenditure made or incurred for the purpose of influencing the nomination 57.2or election of a candidate for public office or for the purpose of promoting or defeating a 57.3ballot question; 57.4    (2) any activity intended to influence an election or a governmental decision-making 57.5process; 57.6    (3) a contribution to a statutory or home rule charter city, county, or town by a 57.7licensed organization with the knowledge that the governmental unit intends to use the 57.8contribution for a pension or retirement fund; or 57.9(4) a contribution to a 501(c)(3) organization or other entity with the intent or effect 57.10of not complying with lawful purpose restrictions or requirements. 57.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2012. new text end 57.12    Sec. 24. Minnesota Statutes 2010, section 349.12, subdivision 25b, is amended to read: 57.13    Subd. 25b. Linked bingo game provider. "Linked bingo game provider" means 57.14any person who provides the means to link bingo prizes in a linked bingo game, who 57.15provides linked bingo paper sheets to the participating organizations new text begin games new text end , who provides 57.16linked bingo prize management, and who provides the linked bingo game system. 57.17    Sec. 25. Minnesota Statutes 2010, section 349.12, subdivision 25c, is amended to read: 57.18    Subd. 25c. Linked bingo game system. "Linked bingo game system" means the 57.19equipment used by the linked bingo provider to conduct, transmit, and track a linked 57.20bingo game. The system must be approved by the board before its use in this state and 57.21it must have dial-up or other new text begin the new text end capability to permit the board to new text begin electronically new text end monitor 57.22its operation remotely. new text begin For linked electronic bingo games, the system includes electronic new text end 57.23 new text begin bingo devices. new text end 57.24    Sec. 26. Minnesota Statutes 2010, section 349.12, subdivision 25d, is amended to read: 57.25    Subd. 25d. Linked bingo prize pool. "Linked bingo prize pool" means the total 57.26of all prize money that each participating organization has contributed to a linked bingo 57.27game prize and includes any portion of the prize pool that is carried over from one 57.28occasion new text begin game new text end to another in a progressive linked bingo game. 57.29    Sec. 27. Minnesota Statutes 2010, section 349.12, subdivision 29, is amended to read: 57.30    Subd. 29. Paddle wheel. "Paddle wheel" means a new text begin vertical new text end wheel marked off into 57.31sections containing one or more numbers, and which, after being turned or spun, uses a 57.32pointer or marker to indicate winning chances new text begin , and may only be used to determine a new text end 58.1 new text begin winning number or numbers matching a winning paddle ticket purchased by a player. A new text end 58.2 new text begin paddle wheel may be an electronic device that simulates a paddle wheel new text end . 58.3    Sec. 28. Minnesota Statutes 2010, section 349.12, subdivision 31, is amended to read: 58.4    Subd. 31. Promotional ticket. A new text begin paper new text end pull-tab new text begin ticket new text end or new text begin paper new text end tipboard ticket 58.5created and printed by a licensed manufacturer with the words "no purchase necessary" and 58.6"for promotional use only" and for which no consideration is given is a promotional ticket. 58.7    Sec. 29. Minnesota Statutes 2010, section 349.12, subdivision 32, is amended to read: 58.8    Subd. 32. Pull-tab. "Pull-tab" means a single folded or banded new text begin paper new text end ticket or a new text begin , new text end 58.9multi-ply card with perforated break-open tabs, new text begin or a facsimile of a paper pull-tab ticket new text end 58.10 new text begin used in conjunction with an electronic pull-tab device, new text end the face of which is initially 58.11covered to conceal one or more numbers or symbols, new text begin and new text end where one or more of each set of 58.12tickets or new text begin , new text end cards new text begin , or facsimiles new text end has been designated in advance as a winner. 58.13    Sec. 30. Minnesota Statutes 2010, section 349.12, subdivision 34, is amended to read: 58.14    Subd. 34. Tipboard. "Tipboard" means a board, placard or other device containing 58.15a seal that conceals the winning number or symbol, and that serves as the game flare for a 58.16tipboard game. new text begin A sports-themed tipboard is a board, placard, or other device that contains a new text end 58.17 new text begin grid of predesignated numbers for which the winning numbers are determined in whole or new text end 58.18 new text begin in part by the numerical outcome of one or more professional sporting events, serves as the new text end 58.19 new text begin game flare for player registration, but is not required to contain a seal. For a sports-themed new text end 58.20 new text begin tipboard, the winning numbers must be determined solely by the numerical outcome. new text end 58.21    Sec. 31. Minnesota Statutes 2010, section 349.12, subdivision 35, is amended to read: 58.22    Subd. 35. Tipboard ticket. "Tipboard ticket" is a single folded or banded ticket, 58.23or multi-ply card, the face of which is initially covered or otherwise hidden from view 58.24to conceal a number, symbol, or set of symbols, some of which have been designated in 58.25advance and at random as prize winners. new text begin For a sports-themed tipboard, the tipboard ticket new text end 58.26 new text begin contains a set of numbers used to determine the winner based on the numerical outcome new text end 58.27 new text begin of a professional sporting event. new text end 58.28    Sec. 32. Minnesota Statutes 2010, section 349.13, is amended to read: 58.29349.13 LAWFUL GAMBLING. 58.30Lawful gambling is not a lottery or gambling within the meaning of sections 609.75 58.31to 609.76 if it is conducted under this chapter. A pull-tab dispensing device new text begin , electronic new text end 59.1 new text begin bingo device, and electronic pull-tab device new text end permitted new text begin under this chapter and new text end by board 59.2rule is not a gambling device within the meaning of sections 609.75 to 609.76 and chapter 59.3299L. new text begin An electronic game device allowed under this chapter may not be a slot machine. new text end 59.4 new text begin Electronic game devices, including but not limited to electronic bingo devices, electronic new text end 59.5 new text begin paddle wheels, and electronic pull-tab devices authorized under this chapter, may only new text end 59.6 new text begin be used in the conduct of lawful gambling permitted under this chapter and board rule new text end 59.7 new text begin and may not display or simulate any other form of gambling or entertainment, except new text end 59.8 new text begin as otherwise allowed under this chapter. new text end 59.9    Sec. 33. Minnesota Statutes 2010, section 349.151, subdivision 4b, is amended to read: 59.10    Subd. 4b. Pull-tab sales from dispensing devices. (a) The board may by rule 59.11authorize but not require the use of pull-tab dispensing devices. 59.12(b) Rules adopted under paragraph (a): 59.13(1) must limit the number of pull-tab dispensing devices on any permitted premises 59.14to three; and 59.15(2) must limit the use of pull-tab dispensing devices to a permitted premises which is 59.16(i) a licensed premises for on-sales of intoxicating liquor or 3.2 percent malt beverages; 59.17or (ii) a premises where bingo is conducted and admission is restricted to persons 18 59.18years or older. 59.19(c) Notwithstanding rules adopted under paragraph (b), pull-tab dispensing devices 59.20may be used in establishments licensed for the off-sale of intoxicating liquor, other than 59.21drugstores and general food stores licensed under section 340A.405, subdivision 1. 59.22    Sec. 34. Minnesota Statutes 2010, section 349.151, subdivision 4c, is amended to read: 59.23    Subd. 4c. Electronic bingo new text begin devices new text end . (a) The board may by rule authorize but not 59.24require the use of electronic bingo devices. 59.25(b) Rules adopted under paragraph (a): 59.26(1) must limit the number of bingo faces that can be played using an electronic 59.27bingo device to 36; 59.28(2) must require that an electronic bingo device be used with corresponding bingo 59.29paper sheets or a facsimile, printed at the point of sale, as approved by the board; 59.30(3) must require that the electronic bingo device site system have dial-up capability 59.31to permit the board to remotely monitor the operation of the device and the internal 59.32accounting systems; and 59.33(4) must prohibit the price of a face played on an electronic bingo device from being 59.34less than the price of a face on a bingo paper sheet sold at the same occasion. 60.1 new text begin (b) The board, or the director if authorized by the board, may require the deactivation new text end 60.2 new text begin of an electronic bingo device for violation of a law or rule and to implement any other new text end 60.3 new text begin controls deemed necessary to ensure and maintain the integrity of electronic bingo devices new text end 60.4 new text begin and the electronic bingo games played on the devices. new text end 60.5    Sec. 35. Minnesota Statutes 2010, section 349.151, is amended by adding a subdivision 60.6to read: 60.7     new text begin Subd. 4d. new text end new text begin Electronic pull-tab devices and electronic pull-tab game system. new text end new text begin (a) new text end 60.8 new text begin The board may adopt rules it deems necessary to ensure the integrity of electronic pull-tab new text end 60.9 new text begin devices, the electronic pull-tab games played on the devices, and the electronic pull-tab new text end 60.10 new text begin game system necessary to operate them. new text end 60.11 new text begin (b) The board may not require an organization to use electronic pull-tab devices. new text end 60.12 new text begin (c) Before authorizing the lease or sale of electronic pull-tab devices and the new text end 60.13 new text begin electronic pull-tab game system, the board shall examine electronic pull-tab devices new text end 60.14 new text begin allowed under section 349.12, subdivision 12b. The board may contract for the new text end 60.15 new text begin examination of the game system and electronic pull-tab devices and may require a working new text end 60.16 new text begin model to be transported to locations the board designates for testing, examination, and new text end 60.17 new text begin analysis. The manufacturer must pay all costs of any testing, examination, analysis, and new text end 60.18 new text begin transportation of the model. The system must be approved by the board before its use in new text end 60.19 new text begin the state and must have the capability to permit the board to electronically monitor its new text end 60.20 new text begin operation and internal accounting systems. new text end 60.21 new text begin (d) The board may require a manufacturer to submit a certificate from an independent new text end 60.22 new text begin testing laboratory approved by the board to perform testing services, stating that the new text end 60.23 new text begin equipment has been tested, analyzed, and meets the standards required in this chapter new text end 60.24 new text begin and any applicable board rules. new text end 60.25 new text begin (e) The board, or the director if authorized by the board, may require the deactivation new text end 60.26 new text begin of an electronic pull-tab device for violation of a law or rule and to implement any other new text end 60.27 new text begin controls deemed necessary to ensure and maintain the integrity of electronic pull-tab new text end 60.28 new text begin devices and the electronic pull-tab games played on the devices. new text end 60.29    Sec. 36. Minnesota Statutes 2010, section 349.151, is amended by adding a subdivision 60.30to read: 60.31     new text begin Subd. 4e. new text end new text begin Sports-themed tipboard rules. new text end new text begin The board may adopt rules for the new text end 60.32 new text begin conduct of tipboards for which the winning numbers are determined in whole or in part new text end 60.33 new text begin by the numerical outcome of one or more professional sporting events. The rules must new text end 60.34 new text begin provide for operation procedures, internal control standards, posted information, records, new text end 61.1 new text begin and reports. The rules must provide for the award of prizes, method of payout, wagers, new text end 61.2 new text begin determination of winners, and the specifications of these tipboards. new text end 61.3    Sec. 37. Minnesota Statutes 2010, section 349.155, subdivision 3, is amended to read: 61.4    Subd. 3. Mandatory disqualifications. (a) In the case of licenses for manufacturers, 61.5distributors, distributor salespersons, linked bingo game providers, and gambling 61.6managers, the board may not issue or renew a license under this chapter, and shall revoke 61.7a license under this chapter, if the applicant or licensee, or a director, officer, partner, 61.8governor, or person in a supervisory or management position of the applicant or licensee: 61.9    (1) has ever been convicted of a felony or a crime involving gambling; 61.10    (2) has ever been convicted of (i) assault, (ii) a criminal violation involving the use 61.11of a firearm, or (iii) making terroristic threats; 61.12    (3) is or has ever been connected with or engaged in an illegal business; 61.13    (4) owes $500 or more in delinquent taxes as defined in section 270C.72; 61.14    (5) had a sales and use tax permit revoked by the commissioner of revenue within 61.15the past two years; or 61.16    (6) after demand, has not filed tax returns required by the commissioner of revenue. 61.17The board may deny or refuse to renew a license under this chapter, and may revoke a 61.18license under this chapter, if any of the conditions in this paragraph are applicable to 61.19an affiliate or direct or indirect holder of more than a five percent financial interest in 61.20the applicant or licensee. 61.21    (b) In the case of licenses for organizations, the board may not issue a license under 61.22this chapter, and shall revoke a license under this chapter, if the organization, or an officer 61.23or member of the governing body of the organization: 61.24    (1) has been convicted of a felony or gross misdemeanor involving theft or fraud; new text begin or new text end 61.25    (2) has ever been convicted of a crime involving gambling; or new text begin . new text end 61.26    (3) has had a license issued by the board or director permanently revoked for 61.27violation of law or board rule. 61.28    Sec. 38. Minnesota Statutes 2010, section 349.155, subdivision 4, is amended to read: 61.29    Subd. 4. License revocation, suspension, denial; censure. new text begin (a) new text end The board may by 61.30order (i) deny, suspend, revoke, or refuse to renew a license or premises permit, or (ii) 61.31censure a licensee or applicant, if it finds that the order is in the public interest and that the 61.32applicant or licensee, or a director, officer, partner, governor, person in a supervisory or 61.33management position of the applicant or licensee, an employee eligible to make sales on 62.1behalf of the applicant or licensee, or direct or indirect holder of more than a five percent 62.2financial interest in the applicant or licensee: 62.3    (1) has violated or failed to comply with any provision of this chapter or chapter 62.4297E or 299L, or any rule adopted or order issued thereunder; 62.5    (2) has filed an application for a license that is incomplete in any material respect, or 62.6contains a statement that, in light of the circumstances under which it was made, is false, 62.7misleading, fraudulent, or a misrepresentation; 62.8    (3) has made a false statement in a document or report required to be submitted to 62.9the board or the commissioner of revenue, or has made a false statement to the board, the 62.10compliance review group, or the director; 62.11    (4) has been convicted of a crime in another jurisdiction that would be a felony if 62.12committed in Minnesota; 62.13    (5) is permanently or temporarily enjoined by any gambling regulatory agency from 62.14engaging in or continuing any conduct or practice involving any aspect of gambling; 62.15    (6) has had a gambling-related license revoked or suspended, or has paid or been 62.16required to pay a monetary penalty of $2,500 or more, by a gambling regulator in another 62.17state or jurisdiction; 62.18    (7) has been the subject of any of the following actions by the director of alcohol 62.19and gambling enforcement or commissioner of public safety: (i) had a license under 62.20chapter 299L denied, suspended, or revoked, (ii) been censured, reprimanded, has paid or 62.21been required to pay a monetary penalty or fine, or (iii) has been the subject of any other 62.22discipline by the director or commissioner; 62.23    (8) has engaged in conduct that is contrary to the public health, welfare, or safety, or 62.24to the integrity of gambling; or 62.25    (9) based on past activities or criminal record poses a threat to the public interest or 62.26to the effective regulation and control of gambling, or creates or enhances the dangers of 62.27unsuitable, unfair, or illegal practices, methods, and activities in the conduct of gambling 62.28or the carrying on of the business and financial arrangements incidental to the conduct of 62.29gambling. 62.30     new text begin (b) The revocation or suspension of an organization's license may not exceed a new text end 62.31 new text begin period of ten years, including any revocation or suspension imposed by the board prior to new text end 62.32 new text begin the effective date of this paragraph, except that: new text end 62.33     new text begin (1) any prohibition placed by the board on who may be involved in the conduct, new text end 62.34 new text begin oversight, or management of the revoked organization's lawful gambling activity is new text end 62.35 new text begin permanent; and new text end 63.1     new text begin (2) a revocation or suspension will remain in effect until any taxes, fees, and fines new text end 63.2 new text begin that are delinquent have been paid by the organization to the satisfaction of the board. new text end 63.3    Sec. 39. Minnesota Statutes 2010, section 349.161, subdivision 1, is amended to read: 63.4    Subdivision 1. Prohibited acts; licenses required. (a) No person may: 63.5    (1) sell, offer for sale, or furnish gambling equipment for use within the state other 63.6than for lawful gambling exempt or excluded from licensing, except to an organization 63.7licensed for lawful gambling; 63.8    (2) sell, offer for sale, or furnish gambling equipment for use within the state without 63.9having obtained a distributor license or a distributor salesperson license under this section 63.10except that an organization authorized to conduct bingo by the board may loan bingo 63.11hard cards and devices for selecting bingo numbers to another organization authorized to 63.12conduct bingo new text begin and a linked bingo game provider may provide electronic bingo devices for new text end 63.13 new text begin linked electronic bingo games new text end ; 63.14    (3) sell, offer for sale, or furnish gambling equipment for use within the state that is 63.15not purchased or obtained from a manufacturer or distributor licensed under this chapter; or 63.16    (4) sell, offer for sale, or furnish gambling equipment for use within the state that 63.17has the same serial number as another item of gambling equipment of the same type sold 63.18or offered for sale or furnished for use in the state by that distributor. 63.19    (b) No licensed distributor salesperson may sell, offer for sale, or furnish gambling 63.20equipment for use within the state without being employed by a licensed distributor or 63.21owning a distributor license. 63.22 new text begin (c) No distributor or distributor salesperson may also be licensed as a linked bingo new text end 63.23 new text begin game provider under section 349.1635. new text end 63.24    Sec. 40. Minnesota Statutes 2010, section 349.161, subdivision 5, is amended to read: 63.25    Subd. 5. Prohibition. (a) No distributor, distributor salesperson, or other employee 63.26of a distributor, may also be a wholesale distributor of alcoholic beverages or an employee 63.27of a wholesale distributor of alcoholic beverages. 63.28    (b) No distributor, distributor salesperson, or any representative, agent, affiliate, or 63.29other employee of a distributor, may: (1) be involved in the conduct of lawful gambling 63.30by an organization; (2) keep or assist in the keeping of an organization's financial records, 63.31accounts, and inventories; or (3) prepare or assist in the preparation of tax forms and other 63.32reporting forms required to be submitted to the state by an organization. 64.1    (c) No distributor, distributor salesperson, or any representative, agent, affiliate, 64.2or other employee of a distributor may provide a lessor of gambling premises any 64.3compensation, gift, gratuity, premium, or other thing of value. 64.4    (d) No distributor, distributor salesperson, or any representative, agent, affiliate, or 64.5other employee of a distributor may provide an employee or agent of the organization 64.6any compensation, gift, gratuity, premium, or other thing of value greater than $25 per 64.7organization in a calendar year. 64.8    (e) No distributor, distributor salesperson, or any representative, agent, affiliate, or 64.9other employee of a distributor may participate in any gambling activity at any gambling 64.10site or premises where gambling equipment purchased new text begin or leased new text end from that distributor or 64.11distributor salesperson is being used in the conduct of lawful gambling. 64.12    (f) No distributor, distributor salesperson, or any representative, agent, affiliate, or 64.13other employee of a distributor may alter or modify any gambling equipment, except to 64.14add a "last ticket sold" prize sticker new text begin for a paper pull-tab game new text end . 64.15    (g) No distributor, distributor salesperson, or any representative, agent, affiliate, or 64.16other employee of a distributor may: (1) recruit a person to become a gambling manager 64.17of an organization or identify to an organization a person as a candidate to become 64.18gambling manager for the organization; or (2) identify for an organization a potential 64.19gambling location. 64.20    (h) No distributor or distributor salesperson may purchase new text begin or lease new text end gambling 64.21equipment for resale new text begin or lease new text end to a person for use within the state from any person not 64.22licensed as a manufacturer under section 349.163, except for gambling equipment 64.23returned from an organization licensed under section 349.16, or exempt or excluded from 64.24licensing under section 349.166. 64.25    (i) No distributor or distributor salesperson may sell gambling equipment, except 64.26gambling equipment identified as a promotional ticket, to any person for use in Minnesota 64.27other than (i) a licensed organization or organization excluded or exempt from licensing, 64.28or (ii) the governing body of an Indian tribe. 64.29    (j) No distributor or distributor salesperson may sell or otherwise provide a new text begin paper new text end 64.30pull-tab or tipboard deal with the symbol required by section 349.163, subdivision 5, 64.31paragraph (d), visible on the flare to any person other than in Minnesota to a licensed 64.32organization or organization exempt from licensing. 64.33    Sec. 41. Minnesota Statutes 2010, section 349.162, subdivision 5, is amended to read: 64.34    Subd. 5. Sales from facilities. (a) All gambling equipment purchased or possessed 64.35by a licensed distributor for resale new text begin or lease new text end to any person for use in Minnesota must, prior 65.1to the equipment's resale new text begin or lease new text end , be unloaded into a storage facility located in Minnesota 65.2which the distributor owns or leases; and which has been registered, in advance and in 65.3writing, with the Division of Alcohol and Gambling Enforcement as a storage facility of 65.4the distributor. All unregistered gambling equipment and all unaffixed registration stamps 65.5owned by, or in the possession of, a licensed distributor in the state of Minnesota shall be 65.6stored at a storage facility which has been registered with the Division of Alcohol and 65.7Gambling Enforcement. No gambling equipment may be moved from the facility unless 65.8the gambling equipment has been first registered with the board or the Department of 65.9Revenue. new text begin A distributor must notify the board of the method that it will use to sell and new text end 65.10 new text begin transfer electronic pull-tab games to licensed organizations, and must receive approval of new text end 65.11 new text begin the board before implementing or making changes to the approved method. new text end 65.12(b) Notwithstanding section 349.163, subdivisions 5, 6, and 8, a licensed 65.13manufacturer may ship into Minnesota approved or unapproved gambling equipment if the 65.14licensed manufacturer ships the gambling equipment to a Minnesota storage facility that 65.15is: (1) owned or leased by the licensed manufacturer; and (2) registered, in advance and 65.16in writing, with the Division of Alcohol and Gambling Enforcement as a manufacturer's 65.17storage facility. No gambling equipment may be shipped into Minnesota to the 65.18manufacturer's registered storage facility unless the shipment of the gambling equipment 65.19is reported to the Department of Revenue in a manner prescribed by the department. 65.20No gambling equipment may be moved from the storage facility unless the gambling 65.21equipment is sold to a licensed distributor and is otherwise in conformity with this chapter, 65.22is shipped to an out-of-state site and the shipment is reported to the Department of 65.23Revenue in a manner prescribed by the department, or is otherwise sold and shipped as 65.24permitted by board rule. new text begin A manufacturer must notify the board of the method that it will new text end 65.25 new text begin use to sell and transfer electronic pull-tab games to licensed distributors, and must receive new text end 65.26 new text begin approval of the board before implementing or making changes to the approved method. new text end 65.27(c) All storage facilities owned, leased, used, or operated by a licensed distributor 65.28or manufacturer may be entered upon and inspected by the employees of the Division of 65.29Alcohol and Gambling Enforcement, the Division of Alcohol and Gambling Enforcement 65.30director's authorized representatives, employees of the Gambling Control Board or its 65.31authorized representatives, employees of the Department of Revenue, or authorized 65.32representatives of the director of the Division of Special Taxes of the Department of 65.33Revenue during reasonable and regular business hours. Obstruction of, or failure to 65.34permit, entry and inspection is cause for revocation or suspension of a manufacturer's or 65.35distributor's licenses and permits issued under this chapter. 66.1(d) Unregistered gambling equipment found at any location in Minnesota other than 66.2the manufacturing plant of a licensed manufacturer or a registered storage facility are 66.3contraband under section 349.2125. This paragraph does not apply: 66.4(1) to unregistered gambling equipment being transported in interstate commerce 66.5between locations outside this state, if the interstate shipment is verified by a bill of lading 66.6or other valid shipping document; and 66.7(2) to gambling equipment registered with the Department of Revenue for 66.8distribution to the tribal casinos. 66.9    Sec. 42. Minnesota Statutes 2010, section 349.163, subdivision 1, is amended to read: 66.10    Subdivision 1. License required. No manufacturer of gambling equipment may 66.11sell any gambling equipment to any person for use or resale within the state, unless the 66.12manufacturer has a current and valid license issued by the board under this section and has 66.13satisfied other criteria prescribed by the board by rule. new text begin A manufacturer licensed under this new text end 66.14 new text begin section may also be licensed as a linked bingo game provider under section 349.1635. new text end 66.15A manufacturer licensed under this section may not also be directly or indirectly 66.16licensed as a distributor under section 349.161. 66.17    Sec. 43. Minnesota Statutes 2010, section 349.163, subdivision 5, is amended to read: 66.18    Subd. 5. new text begin Paper new text end pull-tab and tipboard flares. (a) A manufacturer may not ship or 66.19cause to be shipped into this state or sell for use or resale in this state any deal of new text begin paper new text end 66.20pull-tabs or tipboards that does not have its own individual flare as required for that deal 66.21by this subdivision and rule of the board. A person other than a manufacturer may not 66.22manufacture, alter, modify, or otherwise change a flare for a deal of new text begin paper new text end pull-tabs or 66.23tipboards except as allowed by this chapter or board rules. 66.24(b) The flare of each new text begin paper new text end pull-tab and tipboard game must have affixed to 66.25or imprinted at the bottom a bar code that provides all information required by the 66.26commissioner of revenue under section 297E.04, subdivision 2. 66.27The serial number included in the bar code must be the same as the serial number 66.28of the tickets included in the deal. A manufacturer who manufactures a deal of new text begin paper new text end 66.29pull-tabs must affix to the outside of the box containing that game the same bar code that 66.30is affixed to or imprinted at the bottom of a flare for that deal. 66.31(c) No person may alter the bar code that appears on the outside of a box containing 66.32a deal of new text begin paper new text end pull-tabs and tipboards. Possession of a box containing a deal of new text begin paper new text end 66.33pull-tabs and tipboards that has a bar code different from the bar code of the deal inside 66.34the box is prima facie evidence that the possessor has altered the bar code on the box. 67.1(d) The flare of each deal of new text begin paper new text end pull-tabs and tipboards sold by a manufacturer for 67.2use or resale in Minnesota must have imprinted on it a symbol that is at least one inch high 67.3and one inch wide consisting of an outline of the geographic boundaries of Minnesota 67.4with the letters "MN" inside the outline. The flare must be placed inside the wrapping of 67.5the deal which the flare describes. 67.6(e) Each new text begin paper new text end pull-tab and tipboard flare must bear the following statement printed 67.7in letters large enough to be clearly legible: 67.8"Pull-tab (or tipboard) purchasers -- This pull-tab (or tipboard) game is not legal in 67.9Minnesota unless: 67.10-- an outline of Minnesota with letters "MN" inside it is imprinted on this sheet, and 67.11-- the serial number imprinted on the bar code at the bottom of this sheet is the same 67.12as the serial number on the pull-tab (or tipboard) ticket you have purchased." 67.13(f) The flare of each new text begin paper new text end pull-tab and tipboard game must have the serial number 67.14of the game imprinted on the bar code at the bottom of the flare in numerals at least 67.15one-half inch high. 67.16    Sec. 44. Minnesota Statutes 2010, section 349.163, subdivision 6, is amended to read: 67.17    Subd. 6. Samples of gambling equipment. new text begin (a) new text end The board shall require each 67.18licensed manufacturer to submit to the board one or more samples of each item of gambling 67.19equipment the manufacturer manufactures new text begin manufactured new text end for use or resale in this state. new text begin new text end 67.20 new text begin For purposes of this subdivision, a manufacturer is also required to submit the applicable new text end 67.21 new text begin version of any software necessary to operate electronic devices and related systems. new text end 67.22 new text begin (b) new text end The board shall inspect and test all the equipment new text begin , including software and new text end 67.23 new text begin software upgrades, new text end it deems necessary to determine the equipment's compliance with 67.24law and board rules. Samples required under this subdivision must be approved by the 67.25board before the equipment being sampled is shipped into or sold for use or resale in this 67.26state. The board shall impose a fee of $25 for each item of gambling equipment that the 67.27manufacturer submits for approval or for which the manufacturer requests approval. The 67.28board shall impose a fee of $100 for each sample of gambling equipment that it tests. 67.29 new text begin (c) new text end The board may require samples of gambling equipment to be tested by an 67.30independent testing laboratory prior to submission to the board for approval. All costs 67.31of testing by an independent testing laboratory must be borne by the manufacturer. An 67.32independent testing laboratory used by a manufacturer to test samples of gambling 67.33equipment must be approved by the board before the equipment is submitted to the 67.34laboratory for testing. 68.1 new text begin (d) new text end The board may request the assistance of the commissioner of public safety and 68.2the director of the State Lottery in performing the tests. 68.3    Sec. 45. Minnesota Statutes 2010, section 349.1635, subdivision 2, is amended to read: 68.4    Subd. 2. License application. The board may issue a license to a linked bingo game 68.5provider new text begin or to a manufacturer licensed under section 349.163 new text end who meets the qualifications 68.6of this chapter and the rules promulgated by the board. The application shall be on a form 68.7prescribed by the board. The license is valid for two years and the fee for a linked bingo 68.8game provider license is $5,000 per year. 68.9    Sec. 46. Minnesota Statutes 2010, section 349.1635, subdivision 3, is amended to read: 68.10    Subd. 3. Attachments to application. An applicant for a linked bingo game 68.11provider license must attach to its application: 68.12(1) evidence of a bond in the principal amount of $100,000 payable to the state of 68.13Minnesota conditioned on the payment of all linked bingo prizes and any other money due 68.14and payable under this chapter; 68.15(2) detailed plans and specifications for the operation of the linked bingo game and 68.16the linked bingo system, along with a proposed fee schedule for the cost of providing 68.17services and equipment to licensed organizations new text begin which may not exceed 15 percent of new text end 68.18 new text begin gross profits, unless a higher percentage, not to exceed 20 percent, is authorized by the new text end 68.19 new text begin board. The fee schedule must incorporate costs paid to distributors for services provided new text end 68.20 new text begin under subdivision 5 new text end ; and 68.21(3) any other information required by the board by rule. 68.22    Sec. 47. Minnesota Statutes 2010, section 349.1635, is amended by adding a 68.23subdivision to read: 68.24     new text begin Subd. 5. new text end new text begin Linked bingo game services requirements. new text end new text begin (a) A linked bingo game new text end 68.25 new text begin provider must contract with licensed distributors for linked bingo game services including, new text end 68.26 new text begin but not limited to, the solicitation of agreements with licensed organizations, and new text end 68.27 new text begin installation, repair, or maintenance of the linked bingo game system. new text end 68.28 new text begin (b) A distributor may not charge a fee to licensed organizations for services new text end 68.29 new text begin authorized and rendered under paragraph (a). new text end 68.30 new text begin (c) A linked bingo game provider may not contract with any distributor on an new text end 68.31 new text begin exclusive basis. new text end 69.1 new text begin (d) A linked bingo game provider may refuse to contract with a licensed distributor new text end 69.2 new text begin if the linked bingo game provider demonstrates that the licensed distributor is not capable new text end 69.3 new text begin of performing the services under the contract. new text end 69.4    Sec. 48. Minnesota Statutes 2010, section 349.165, subdivision 2, is amended to read: 69.5    Subd. 2. Contents of application. An application for a premises permit must 69.6contain: 69.7    (1) the name and address of the applying organization; 69.8    (2) a description of the site for which the permit is sought, including its address and, 69.9where applicable, its placement within another premises or establishment; 69.10    (3) if the site is leased, the name and address of the lessor and information about the 69.11lease the board requires, including all rents and other charges for the use of the site. The 69.12lease term is concurrent with the term of the premises permit. The lease must contain a 69.1330-day termination clause. No lease is required for the conduct of a raffle; and 69.14    (4) other information the board deems necessary to carry out its purposes. 69.15    An organization holding a premises permit must notify the board in writing within 69.16ten days whenever any material change is made in the above information. 69.17    Sec. 49. Minnesota Statutes 2010, section 349.17, subdivision 6, is amended to read: 69.18    Subd. 6. Conduct of bingo. new text begin The price of a face played on an electronic bingo new text end 69.19 new text begin device may not be less than the price of a face on a bingo paper sheet sold for the same new text end 69.20 new text begin game at the same occasion. new text end A game of bingo begins with the first letter and number called new text begin new text end 69.21 new text begin or displayed new text end . Each player must cover, mark, or activate the numbers when bingo numbers 69.22are randomly selected, new text begin and new text end announced, and new text begin or new text end displayed to the players, either manually 69.23or with a flashboard and monitor. The game is won when a player, using bingo paper, 69.24bingo hard card, or a facsimile of a bingo paper sheet, has completed, as described in the 69.25bingo program, a previously designated pattern or previously determined requirements 69.26of the game and declared bingo. The game is completed when a winning card, sheet, or 69.27facsimile is verified and a prize awarded pursuant to subdivision 3. 69.28    Sec. 50. Minnesota Statutes 2010, section 349.17, subdivision 7, is amended to read: 69.29    Subd. 7. Bar bingo. An organization may conduct bar bingo subject to the 69.30following restrictions: 69.31    (1) the bingo is conducted at a site the organization owns or leases and which has a 69.32license for the sale of intoxicating beverages on the premises under chapter 340A; new text begin and new text end 70.1    (2) the bingo is conducted using only bingo paper sheets or facsimiles of bingo paper 70.2sheets purchased from a licensed distributor or licensed linked bingo game provider; and new text begin . new text end 70.3    (3) no rent may be paid for a bar bingo occasion. 70.4    Sec. 51. Minnesota Statutes 2010, section 349.17, subdivision 8, is amended to read: 70.5    Subd. 8. Linked bingo games. (a) A licensed organization may conduct or 70.6participate in not more than two linked bingo games per occasion, one of which may be a new text begin , new text end 70.7 new text begin including new text end progressive game new text begin games new text end in which a portion of the prize is carried over from 70.8one occasion new text begin game new text end to another until won by a player achieving a new text begin valid new text end bingo within a 70.9predetermined amount of bingo numbers called new text begin based upon a predetermined and posted new text end 70.10 new text begin win determination new text end . 70.11    (b) Each participating licensed organization shall contribute to each prize awarded in 70.12a linked bingo game in an amount not to exceed $300. new text begin Linked bingo games may only be new text end 70.13 new text begin conducted by licensed organizations who have a valid agreement with the linked bingo new text end 70.14 new text begin game provider. new text end 70.15    (c) An electronic bingo device as defined in section 349.12, subdivision 12a, may 70.16be used for a linked bingo game. 70.17    (d) The board may adopt rules to: 70.18    (1) specify the manner in which a linked bingo game must be played and how the 70.19linked bingo prizes must be awarded; 70.20    (2) specify the records to be maintained by a linked bingo game provider; 70.21    (3) require the submission of periodic reports by the linked bingo game provider and 70.22specify the content of the reports; 70.23    (4) establish the qualifications required to be licensed as a linked bingo game 70.24provider; and 70.25    (5) any other matter involving the operation of a linked bingo game. 70.26    Sec. 52. Minnesota Statutes 2010, section 349.17, is amended by adding a subdivision 70.27to read: 70.28     new text begin Subd. 9. new text end new text begin Linked bingo games played exclusively on electronic bingo devices. new text end new text begin In new text end 70.29 new text begin addition to the requirements of subdivision 8, the following requirements and restrictions new text end 70.30 new text begin apply when linked bingo games are played exclusively on electronic bingo devices. new text end 70.31 new text begin (a) The permitted premises must be: new text end 70.32 new text begin (1) a premises licensed for the on-sale or off-sale of intoxicating liquor or 3.2 percent new text end 70.33 new text begin malt beverages, except for a general food store or drug store permitted to sell alcoholic new text end 70.34 new text begin beverages under section 340A.405, subdivision 1; or new text end 71.1 new text begin (2) a premises where bingo is conducted as the primary business and has a seating new text end 71.2 new text begin capacity of at least 100. new text end 71.3 new text begin (b) The number of electronic bingo devices is limited to: new text end 71.4 new text begin (1) no more than six devices in play for permitted premises with 200 seats or less; new text end 71.5 new text begin (2) no more than 12 devices in play for permitted premises with 201 seats or more; new text end 71.6 new text begin and new text end 71.7 new text begin (3) no more than 50 devices in play for permitted premises where bingo is the new text end 71.8 new text begin primary business. new text end 71.9 new text begin Seating capacity is determined as specified under the local fire code. new text end 71.10 new text begin (c) Prior to a bingo occasion, the linked bingo game provider, on behalf of the new text end 71.11 new text begin participating organizations, must provide to the board a bingo program in a format new text end 71.12 new text begin prescribed by the board. new text end 71.13 new text begin (d) Before participating in the play of a linked bingo game, a player must present new text end 71.14 new text begin and register a valid picture identification card that includes the player's address and new text end 71.15 new text begin date of birth. new text end 71.16 new text begin (e) An organization may remove from play a device that a player has not maintained new text end 71.17 new text begin in an activated mode for a specified period of time determined by the organization. The new text end 71.18 new text begin organization must provide the notice in its house rules. new text end 71.19    Sec. 53. Minnesota Statutes 2010, section 349.1711, subdivision 1, is amended to read: 71.20    Subdivision 1. Sale of tickets. new text begin (a) new text end Tipboard games must be played using only 71.21tipboard tickets that are either (1) attached to a placard and arranged in columns or rows, 71.22or (2) separate from the placard and contained in a receptacle while the game is in play. 71.23The placard serves as the game flare. 71.24 new text begin (b) Except for a sports-themed tipboard, new text end the placard must contain a seal that conceals 71.25the winning number or symbol. When a tipboard ticket is purchased and opened from a 71.26game containing more than 32 tickets, each player having a tipboard ticket with one or 71.27more predesignated numbers or symbols must sign the placard at the line indicated by the 71.28number or symbol on the tipboard ticket. 71.29    Sec. 54. Minnesota Statutes 2010, section 349.1711, subdivision 2, is amended to read: 71.30    Subd. 2. Determination of winners. When the predesignated numbers or symbols 71.31have all been purchased, or all of the tipboard tickets for that game have been sold, 71.32the seal must be removed to reveal a number or symbol that determines which of the 71.33predesignated numbers or symbols is the winning number or symbol. A tipboard may also 71.34contain consolation winners new text begin , or winning chances that are determined in whole or in part new text end 72.1 new text begin by the numerical outcome of one or more professional sporting events, new text end that need not be 72.2determined by the use of the seal. 72.3    Sec. 55. Minnesota Statutes 2010, section 349.1721, is amended to read: 72.4349.1721 CONDUCT OF PULL-TABS. 72.5    Subdivision 1. Cumulative or carryover games. The board shall by rule permit 72.6pull-tab games with multiple seals. The board shall also adopt rules for pull-tab games with 72.7cumulative or carryover prizes. new text begin The rules shall also apply to electronic pull-tab games. new text end 72.8    Subd. 2. Event games. The board shall by rule permit pull-tab games in which 72.9certain winners are determined by the random selection of one or more bingo numbers 72.10or by another method approved by the board. new text begin The rules shall also apply to electronic new text end 72.11 new text begin pull-tab games. new text end 72.12     new text begin Subd. 3. new text end new text begin Pull-tab dispensing device location restrictions and requirements. new text end 72.13 new text begin The following pertain to pull-tab dispensing devices as defined under section 349.12, new text end 72.14 new text begin subdivision 32a. new text end 72.15 new text begin (a) The use of any pull-tab dispensing device must be at a permitted premises new text end 72.16 new text begin which is: new text end 72.17 new text begin (1) a licensed premises for on-sale of intoxicating liquor or 3.2 percent malt new text end 72.18 new text begin beverages; new text end 72.19 new text begin (2) a premises where bingo is conducted as the primary business; or new text end 72.20 new text begin (3) an establishment licensed for the off-sale of intoxicating liquor, other than drug new text end 72.21 new text begin stores and general food stores licensed under section 340A.405, subdivision 1. new text end 72.22 new text begin (b) The number of pull-tab dispensing devices located at any permitted premises new text end 72.23 new text begin is limited to three. new text end 72.24     new text begin Subd. 4. new text end new text begin Electronic pull-tab device requirements and restrictions. new text end new text begin The following new text end 72.25 new text begin pertain to the use of electronic pull-tab devices as defined under section 349.12, new text end 72.26 new text begin subdivision 12b. new text end 72.27 new text begin (a) The use of any electronic pull-tab device may only be at a permitted premises new text end 72.28 new text begin that is: new text end 72.29 new text begin (1) a premises licensed for the on-sale or off-sale of intoxicating liquor or 3.2 percent new text end 72.30 new text begin malt beverages, except for a general food store or drug store permitted to sell alcoholic new text end 72.31 new text begin beverages under section 340A.405, subdivision 1; or new text end 72.32 new text begin (2) a premises where bingo is conducted as the primary business and has a seating new text end 72.33 new text begin capacity of at least 100; and new text end 72.34 new text begin (3) where the licensed organization sells paper pull-tabs. new text end 72.35 new text begin (b) The number of electronic pull-tab devices is limited to: new text end 73.1 new text begin (1) no more than six devices in play at any permitted premises with 200 seats or less; new text end 73.2 new text begin (2) no more than 12 devices in play at any permitted premises with 201 seats new text end 73.3 new text begin or more; and new text end 73.4 new text begin (3) no more than 50 devices in play at any permitted premises where the primary new text end 73.5 new text begin business is bingo. new text end 73.6 new text begin Seating capacity is determined as specified under the local fire code. new text end 73.7 new text begin (c) The hours of operation for the devices are limited to 8:00 a.m. to 2:00 a.m. new text end 73.8 new text begin (d) All electronic pull-tab games must be sold and played on the permitted premises new text end 73.9 new text begin and may not be linked to other permitted premises. new text end 73.10 new text begin (e) Electronic pull-tab games may not be transferred electronically or otherwise to new text end 73.11 new text begin any other location by the licensed organization. new text end 73.12 new text begin (f) Electronic pull-tab games may be commingled if the games are from the same new text end 73.13 new text begin family of games and manufacturer and contain the same game name, form number, type new text end 73.14 new text begin of game, ticket count, prize amounts, and prize denominations. Each commingled game new text end 73.15 new text begin must have a unique serial number. new text end 73.16 new text begin (g) An organization may remove from play a device that a player has not maintained new text end 73.17 new text begin in an activated mode for a specified period of time determined by the organization. The new text end 73.18 new text begin organization must provide the notice in its house rules. new text end 73.19 new text begin (h) Before participating in the play of an electronic pull-tab game, a player must new text end 73.20 new text begin present and register a valid picture identification card that includes the player's address new text end 73.21 new text begin and date of birth. new text end 73.22 new text begin (i) Each player is limited to the use of one device at a time. new text end 73.23     new text begin Subd. 5. new text end new text begin Multiple chance games. new text end new text begin The board may permit pull-tab games in which new text end 73.24 new text begin the holders of certain predesignated winning tickets, with a prize value not to exceed $75 new text end 73.25 new text begin each, have the option of turning in the winning tickets for the chance to win a prize of new text end 73.26 new text begin greater value. new text end 73.27    Sec. 56. Minnesota Statutes 2010, section 349.18, subdivision 1, is amended to read: 73.28    Subdivision 1. Lease or ownership required; rent limitations. (a) An organization 73.29may conduct lawful gambling only on premises it owns or leases. Leases must be on a 73.30form prescribed by the board. The term of the lease is concurrent with the premises permit. 73.31Leases approved by the board must specify that the board may authorize an organization 73.32to withhold rent from a lessor for a period of up to 90 days if the board determines that 73.33illegal gambling occurred on the premises or that the lessor or its employees participated 73.34in the illegal gambling or knew of the gambling and did not take prompt action to stop the 73.35gambling. The lease must authorize the continued tenancy of the organization without 74.1the payment of rent during the time period determined by the board under this paragraph. 74.2Copies of all leases must be made available to employees of the board and the Division of 74.3Alcohol and Gambling Enforcement on request. 74.4    (b) Rent paid by an organization for leased premises for the conduct of pull-tabs, 74.5tipboards, and paddle wheels new text begin lawful gambling new text end is subject to the following limits new text begin and new text end 74.6 new text begin restrictions new text end : 74.7    (1) For booth operations, including booth operations where a pull-tab dispensing 74.8device is located, booth operations where a bar operation is also conducted, and booth 74.9operations where both a pull-tab dispensing device is located and a bar operation is also 74.10conducted, the maximum rent is: new text begin monthly rent may not exceed ten percent of gross profits new text end 74.11 new text begin for that month. Total rent paid to a lessor from all organizations from leases governed by new text end 74.12 new text begin this clause may not exceed $1,750 per month. new text end 74.13    (i) in any month where the organization's gross profit at those premises does not 74.14exceed $4,000, up to $400; and 74.15    (ii) in any month where the organization's gross profit at those premises exceeds 74.16$4,000, up to $400 plus not more than ten percent of the gross profit for that month in 74.17excess of $4,000; 74.18    (2) For bar operations, including bar operations where a pull-tab dispensing device 74.19is located but not including bar operations subject to clause (1), and for locations where 74.20only a pull-tab dispensing device is located: new text begin monthly rent may not exceed: new text end 74.21 new text begin (i) 15 percent of the gross profits for that month from electronic pull-tab games and new text end 74.22 new text begin electronic linked bingo games; and new text end 74.23 new text begin (ii) more than 20 percent of gross profits from all other forms of lawful gambling. new text end 74.24    (i) in any month where the organization's gross profit at those premises does not 74.25exceed $1,000, up to $200; and 74.26    (ii) in any month where the organization's gross profit at those premises exceeds 74.27$1,000, up to $200 plus not more than 20 percent of the gross profit for that month 74.28in excess of $1,000; 74.29    (3) a lease not governed by clauses (1) and (2) must be approved by the board before 74.30becoming effective; new text begin For electronic linked bingo games and electronic pull-tab games that new text end 74.31 new text begin are operated for separate time periods within a business day by an organization and the new text end 74.32 new text begin lessor, monthly rent may not be more than: new text end 74.33 new text begin (i) 15 percent of the gross profits for that month for the time periods operated by new text end 74.34 new text begin the lessor. The lessor is responsible for cash shortages that occur during the time periods new text end 74.35 new text begin the games are operated by the lessor; and new text end 75.1 new text begin (ii) ten percent of gross profits for that month for the time periods operated by the new text end 75.2 new text begin organization. The organization is responsible for cash shortages that occur during the time new text end 75.3 new text begin periods the games are operated by the organization. new text end 75.4    (4) total rent paid to a lessor from all organizations from leases governed by clause 75.5(1) may not exceed $1,750 per month. 75.6    (c) Rent paid by an organization for leased premises for the conduct of bingo is 75.7subject to either of the following limits at the option of the parties to the lease: 75.8    (1) new text begin (4) For bingo conducted at a leased premises where the primary business is new text end 75.9 new text begin bingo, rent is limited to either new text end not more than ten percent of the monthly gross profit from 75.10all lawful gambling activities held during bingo occasions new text begin , new text end excluding bar bingo or at a 75.11rate based on a cost per square foot not to exceed 110 percent of a comparable cost per 75.12square foot for leased space as approved by the director; and new text begin . new text end 75.13    (2) new text begin (5) new text end No rent may be paid for bar bingo new text begin as defined in section 349.12, subdivision 3c new text end . 75.14 new text begin (6) A lease not governed by clauses (1) to (5) must be approved by the director new text end 75.15 new text begin before becoming effective. new text end 75.16    (d) new text begin (c) new text end Amounts paid as rent under leases are all-inclusive. No other services or 75.17expenses provided or contracted by the lessor may be paid by the organization, including, 75.18but not limited to, trash removal, janitorial and cleaning services, snow removal, lawn 75.19services, electricity, heat, security, security monitoring, storage, new text begin and new text end other utilities or 75.20services, and, in the case of bar operations, cash shortages, unless approved by the 75.21director. new text begin The lessor shall be responsible for the cost of any communications network or new text end 75.22 new text begin service required to conduct electronic pull-tab games or electronic bingo games. new text end Any 75.23other expenditure made by an organization that is related to a leased premises must be 75.24approved by the director. new text begin For bar operations, the lessor is responsible for cash shortages. new text end 75.25An organization may not provide any compensation or thing of value to a lessor or the 75.26lessor's employees from any fund source other than its gambling account. Rent payments 75.27may not be made to an individual. 75.28    (e) new text begin (d) new text end Notwithstanding paragraph (b), an organization may pay a lessor for food 75.29or beverages or meeting room rental if the charge made is comparable to similar charges 75.30made to other individuals or groups. 75.31    (f) No entity other than the new text begin (e) A new text end licensed organization may new text begin not new text end conduct any activity 75.32within a booth operation new text begin on behalf of the lessor new text end on a leased premises. 75.33    Sec. 57. Minnesota Statutes 2010, section 349.19, subdivision 2, is amended to read: 76.1    Subd. 2. Accounts. (a) Gross receipts from lawful gambling by each organization 76.2must be segregated from all other revenues of the conducting organization and placed in a 76.3separate gambling bank account. 76.4(b) All expenditures for allowable expenses, taxes, and lawful purposes must be 76.5made from the separate account except (1) in the case of expenditures previously approved 76.6by the organization's membership for emergencies as defined by board rule, (2) as provided 76.7in subdivision 2a, or (3) when restricted to one electronic fund transaction for the payment 76.8of taxes for the organization as a whole, the organization may transfer the amount of taxes 76.9related to the conduct of gambling to the general account at the time when due and payable. 76.10(c) The name and address of the bank, the account number for the separate account, 76.11and the names of organization members authorized as signatories on the separate account 76.12must be provided to the board when the application is submitted. Changes in the 76.13information must be submitted to the board at least ten days before the change is made. 76.14(d) new text begin Except for gambling receipts from electronic pull-tab games and linked new text end 76.15 new text begin electronic bingo games, new text end gambling receipts must be deposited into the gambling bank 76.16account within four business days of completion of the bingo occasion, deal, or game from 76.17which they are received. 76.18 new text begin (1) new text end A deal of new text begin paper new text end pull-tabs is considered complete when either the last pull-tab of 76.19the deal is sold or the organization does not continue the play of the deal during the next 76.20scheduled period of time in which the organization will conduct pull-tabs. 76.21 new text begin (2) new text end A tipboard game is considered complete when the seal on the game flare is 76.22uncovered or the organization does not continue the play of the deal during the next 76.23scheduled period of time in which the organization will conduct tipboards. 76.24 new text begin (e) Gambling receipts from all electronic pull-tab games and all linked electronic new text end 76.25 new text begin bingo games must be recorded on a daily basis and deposited into the gambling bank new text end 76.26 new text begin account within two business days. new text end 76.27(e) new text begin (f) new text end Deposit records must be sufficient to allow determination of deposits made 76.28from each bingo occasion, deal, or game at each permitted premises. 76.29(f) new text begin (g) new text end The person who accounts for gambling gross receipts and profits may not be 76.30the same person who accounts for other revenues of the organization. 76.31    Sec. 58. Minnesota Statutes 2010, section 349.19, subdivision 3, is amended to read: 76.32    Subd. 3. Expenditures. (a) All expenditures of gross profits from lawful gambling 76.33must be itemized as to payee, purpose, amount, and date of payment. 77.1(b) Each licensed organization must report monthly to the board on a form new text begin in an new text end 77.2 new text begin electronic format new text end prescribed by the board each expenditure or contribution of net profits 77.3from lawful gambling. The reports must provide for each expenditure or contribution: 77.4(1) the name of the recipient of the expenditure or contribution; 77.5(2) the date the expenditure or contribution was approved by the organization; 77.6(3) the date, amount, and check number or electronic transfer confirmation number 77.7of the expenditure or contribution; 77.8(4) a brief description of how the expenditure or contribution meets one or more of 77.9the purposes in section 349.12, subdivision 25; and 77.10(5) in the case of expenditures authorized under section 349.12, subdivision 25, 77.11paragraph (a), clause (7), whether the expenditure is for a facility or activity that primarily 77.12benefits male or female participants. 77.13(c) Authorization of the expenditures must be recorded in the monthly meeting 77.14minutes of the licensed organization. 77.15(d) Checks or authorizations for electronic fund transfers for expenditures of gross 77.16profits must be signed by at least two persons authorized by board rules to sign the 77.17checks or authorizations. 77.18(e) Expenditures of gross profits from lawful gambling for local, state, and federal 77.19taxes as identified in section 349.12, subdivision 25, paragraph (a), clause (8), may be 77.20transferred electronically from the organization's gambling account directly to bank 77.21accounts identified by local, state, or federal agencies if the organization's gambling 77.22account monthly bank statement specifically identifies the payee by name, the amount 77.23transferred, and the date of the transaction. 77.24(f) Expenditures of gross profits from lawful gambling for payments for lawful 77.25purpose expenditures and allowable expenses may be transferred electronically from the 77.26organization's gambling account directly to bank accounts identified by the vendor if the 77.27organization's gambling account monthly bank statement specifically identifies the payee 77.28by name, the amount transferred, the account number of the account into which the funds 77.29were transferred, and the date of the transaction. 77.30(g) Expenditures of gross profits from lawful gambling for payroll compensation 77.31to an employee's account and for the payment of local, state, and federal withholding 77.32taxes may be transferred electronically to and from the account of a payroll processing 77.33firm provided that the firm: 77.34(1) is currently registered with and meets the criteria of the Department of Revenue 77.35as a third-party bulk filer under section 290.92, subdivision 30; 78.1(2) is able to provide proof of a third-party audit and an annual report and statement 78.2of financial condition; 78.3(3) is able to provide evidence of a fidelity bond; and 78.4(4) can provide proof of having been in business as a third-party bulk filer for the 78.5most recent three years. 78.6(h) Electronic payments of taxes, lawful purpose expenditures, and allowable 78.7expenses are permitted only if they have been authorized by the membership, the 78.8organization maintains supporting documentation, and the expenditures can be verified. 78.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2012. new text end 78.10    Sec. 59. Minnesota Statutes 2010, section 349.19, subdivision 5, is amended to read: 78.11    Subd. 5. Reports. new text begin (a) new text end A licensed organization must report new text begin monthly new text end to the 78.12Department of Revenue new text begin board in an electronic format prescribed by the board new text end and to its 78.13membership monthly, or quarterly in the case of a licensed organization which does not 78.14report more than $1,000 in gross receipts from lawful gambling in any calendar quarter, 78.15on its gross receipts, expenses, profits, and expenditure of profits from lawful gambling new text begin new text end 78.16 new text begin for each permitted premises. The organization must account for and report on each form new text end 78.17 new text begin of lawful gambling conducted new text end . The report new text begin organization new text end must include a reconciliation of 78.18the organization's profit carryover with its cash balance on hand. If the organization 78.19conducts both bingo and other forms of lawful gambling, the figures for both must be 78.20reported separately. 78.21 new text begin (b) new text end The organization must report annually to its membership and annually file with 78.22the board a financial summary report in a format prescribed by the board that identifies the 78.23organization's receipts and use of lawful gambling proceeds, including: new text begin monthly to the new text end 78.24 new text begin commissioner of revenue as required under section 297E.06. new text end 78.25(1) gross receipts; 78.26(2) prizes paid; 78.27(3) allowable expenses; 78.28(4) lawful purpose expenditures, including annual totals for types of charitable 78.29contributions and all taxes and fees as per section 349.12, subdivision 25, paragraph 78.30(a), clauses (8) and (18); 78.31(5) the percentage of annual gross profits used for charitable contributions; and 78.32(6) the percentage of annual gross profits used for all taxes and fees as per section 78.33349.12, subdivision 25, paragraph (a), clauses (8) and (18). 78.34 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2012. new text end 79.1    Sec. 60. Minnesota Statutes 2010, section 349.19, subdivision 10, is amended to read: 79.2    Subd. 10. Pull-tab records. (a) The board shall by rule require a licensed 79.3organization to require each winner of a new text begin paper new text end pull-tab prize of $50 or more to present 79.4identification in the form of a driver's license, Minnesota identification card, or other 79.5identification the board deems sufficient to allow the identification and tracking of the 79.6winner. The rule must require the organization to retain winning new text begin paper new text end pull-tabs of $50 or 79.7more, and the identification of the winner of the pull-tab, for 3-1/2 years. 79.8    (b) An organization must maintain separate cash banks for each deal of new text begin paper new text end 79.9pull-tabs unless (1) the licensed organization uses a pull-tab dispensing device, or (2) the 79.10organization uses a cash register, of a type approved by the board, which records all 79.11sales of new text begin paper new text end pull-tabs by separate deals. 79.12    (c) The board shall: 79.13    (1) by rule adopt minimum technical standards for cash registers that may be used 79.14by organizations, and shall approve for use by organizations any cash register that meets 79.15the standards; and 79.16    (2) before allowing an organization to use a cash register that commingles receipts 79.17from several different new text begin paper new text end pull-tab games in play, adopt rules that define how cash 79.18registers may be used and that establish a procedure for organizations to reconcile all 79.19pull-tab games in play at the end of each month. 79.20    Sec. 61. Minnesota Statutes 2010, section 349.211, subdivision 1a, is amended to read: 79.21    Subd. 1a. Linked bingo prizes. Prizes for a linked bingo game shall be limited 79.22as follows: 79.23(1) no organization may contribute more than $300 per linked bingo game to a 79.24linked bingo prize pool new text begin for linked bingo games played without electronic bingo devices, new text end 79.25 new text begin an organization may not contribute to a linked bingo game prize pool more than $300 new text end 79.26 new text begin per linked bingo game per site new text end ; 79.27 new text begin (2) for linked bingo games played exclusively with electronic bingo devices, an new text end 79.28 new text begin organization may not contribute more than 85 percent of the gross receipts per permitted new text end 79.29 new text begin premises to a linked bingo game prize pool; new text end 79.30(2) new text begin (3) new text end no organization may award more than $200 for a linked bingo game 79.31consolation prize. For purposes of this subdivision, a linked bingo game consolation 79.32prize is a prize awarded by an organization after a prize from the linked bingo prize pool 79.33has been won; and 79.34    (3) new text begin (4) new text end for a progressive linked bingo game, if no player declares a valid bingo 79.35within the new text begin for a progressive prize or prizes based on a new text end predetermined amount of bingo 80.1numbers called new text begin and posted win determination new text end , a portion of the prize is new text begin gross receipts new text end 80.2 new text begin may be new text end carried over to another occasion new text begin game new text end until the accumulated new text begin progressive new text end prize 80.3is won. The portion of the prize that is not carried over must be awarded to the first 80.4player or players who declares a valid bingo as additional numbers are called. If a valid 80.5bingo is declared within the predetermined amount of bingo numbers called, the entire 80.6prize pool for that game is awarded to the winner. The annual limit for progressive bingo 80.7game prizes contained in subdivision 2 must be reduced by the amount an organization 80.8contributes to progressive linked bingo games during the same calendar year. new text begin ; and new text end 80.9 new text begin (5) for linked bingo games played exclusively with electronic bingo devices, linked new text end 80.10 new text begin bingo prizes in excess of $599 shall be paid by the linked bingo game provider to the new text end 80.11 new text begin player within three business days. Winners of linked bingo prizes in excess of $599 will new text end 80.12 new text begin be given a receipt or claim voucher as proof of a win. new text end 80.13    Sec. 62. Minnesota Statutes 2010, section 349.211, subdivision 2c, is amended to read: 80.14    Subd. 2c. Tipboard prizes. new text begin (a) new text end The maximum prize which may be awarded for 80.15a tipboard ticket is $599 for $2 and under tipboard tickets, $899 for $3 tipboard tickets, 80.16$1,199 for $4 tipboard tickets, and $1,499 for $5 tipboard tickets, not including any 80.17cumulative or carryover prizes. Cumulative or carryover prizes in tipboard games shall 80.18not exceed $2,500. An organization may not sell any tipboard ticket for more than $5. 80.19 new text begin (b) For sports-themed tipboards, the total prize payout may not exceed the amount in new text end 80.20 new text begin section 349.2113, and each chance or ticket may not be sold for more than $10. new text end 80.21    Sec. 63. new text begin DEPARTMENT OF PUBLIC SAFETY; OVERSIGHT OF new text end 80.22 new text begin BACKGROUND CHECKS. new text end 80.23 new text begin The Department of Public Safety shall exercise oversight over all background new text end 80.24 new text begin checks on manufacturers and distributors who supply machines, games, software, or other new text end 80.25 new text begin gambling materials used in electronic pull-tabs, electronic bingo, or professional sports new text end 80.26 new text begin tipboards, to ensure the integrity of new forms of gambling entering the Minnesota market. new text end 80.27    Sec. 64. new text begin SEVERABILITY. new text end 80.28 new text begin If any provision of this act is found to be invalid because it is in conflict with a new text end 80.29 new text begin provision of the Minnesota Constitution or the Constitution of the United States, or for any new text end 80.30 new text begin other reason, all other provisions of this act shall remain valid and any rights, remedies, new text end 80.31 new text begin and privileges that have been otherwise accrued by this act, shall remain in effect and may new text end 80.32 new text begin be proceeded with and concluded under this act. new text end 81.1    Sec. 65. new text begin APPROPRIATION. new text end 81.2 new text begin (a) $1,219,000 in fiscal year 2013 is appropriated from the lawful gambling new text end 81.3 new text begin regulation account in the special revenue fund to the Gambling Control Board for new text end 81.4 new text begin operating expenses related to the regulatory oversight of lawful gambling for electronic new text end 81.5 new text begin pull-tabs and electronic linked bingo. new text end 81.6 new text begin (b) $250,000 in fiscal year 2013 is appropriated from the lawful gambling regulation new text end 81.7 new text begin account in the special revenue fund to the Department of Public Safety for expenses related new text end 81.8 new text begin to the oversight of lawful gambling for electronic pull-tabs and electronic linked bingo. new text end 81.9    Sec. 66. new text begin REPEALER. new text end 81.10 new text begin Minnesota Statutes 2010, sections 297E.02, subdivision 4; 349.15, subdivision 3; new text end 81.11 new text begin and 349.19, subdivision 2a, new text end new text begin are repealed. new text end 81.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for games sold by a licensed new text end 81.13 new text begin distributor after June 30, 2012, and the commissioner of revenue retains the authority to new text end 81.14 new text begin issue refunds under Minnesota Statutes 2010, section 297E.02, subdivision 4, paragraph new text end 81.15 new text begin (d), for games sold before July 1, 2012. new text end 81.16    Sec. 67. new text begin EFFECTIVE DATE. new text end 81.17 new text begin Unless otherwise specifically provided, this act is effective the day following final new text end 81.18 new text begin enactment. new text end 81.19ARTICLE 5 81.20MISCELLANEOUS 81.21    Section 1. new text begin [245.981] COMPULSIVE GAMBLING ANNUAL REPORT. new text end 81.22 new text begin (a) Each year by February 15, 2014, and thereafter, the commissioner of human new text end 81.23 new text begin services shall report to the chairs and ranking minority members of the legislative new text end 81.24 new text begin committees having jurisdiction over compulsive gambling on the percentage of gambling new text end 81.25 new text begin revenues that come from gamblers identified as problem gamblers, or a similarly defined new text end 81.26 new text begin term, as defined by the National Council on Problem Gambling. The report must new text end 81.27 new text begin disaggregate the revenue by the various types of gambling, including, but not limited to: new text end 81.28 new text begin lottery; electronic and paper pull-tabs; bingo; linked bingo; and pari-mutuel betting. new text end 81.29 new text begin (b) By February 15, 2013, the commissioner shall provide a preliminary update for new text end 81.30 new text begin the report required under paragraph (a) to the chairs and ranking minority members of the new text end 81.31 new text begin legislative committees having jurisdiction over compulsive gambling and the estimated new text end 81.32 new text begin cost of the full report. new text end 82.1    Sec. 2. Minnesota Statutes 2010, section 297A.71, is amended by adding a subdivision 82.2to read: 82.3     new text begin Subd. 44. new text end new text begin Building materials, capital projects. new text end new text begin Materials and supplies used or new text end 82.4 new text begin consumed in and equipment incorporated into the construction or improvement of a new text end 82.5 new text begin capital project funded partially or wholly under section 297A.9905 are exempt, provided new text end 82.6 new text begin that the project has a total construction cost of at least $40,000,000 within a 24-month new text end 82.7 new text begin period. The tax on purchases exempt under this provision must be imposed and collected new text end 82.8 new text begin as if the rate under section 297A.62, subdivision 1, applied and then refunded in the new text end 82.9 new text begin manner provided in section 297A.75. new text end 82.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 82.11 new text begin June 30, 2013. new text end 82.12    Sec. 3. Minnesota Statutes 2011 Supplement, section 297A.75, subdivision 1, is 82.13amended to read: 82.14    Subdivision 1. Tax collected. The tax on the gross receipts from the sale of the 82.15following exempt items must be imposed and collected as if the sale were taxable and the 82.16rate under section 297A.62, subdivision 1, applied. The exempt items include: 82.17    (1) capital equipment exempt under section 297A.68, subdivision 5; 82.18    (2) building materials for an agricultural processing facility exempt under section 82.19297A.71, subdivision 13 ; 82.20    (3) building materials for mineral production facilities exempt under section 82.21297A.71, subdivision 14 ; 82.22    (4) building materials for correctional facilities under section 297A.71, subdivision 82.233 ; 82.24    (5) building materials used in a residence for disabled veterans exempt under section 82.25297A.71, subdivision 11 ; 82.26    (6) elevators and building materials exempt under section 297A.71, subdivision 12; 82.27    (7) building materials for the Long Lake Conservation Center exempt under section 82.28297A.71, subdivision 17 ; 82.29    (8) materials and supplies for qualified low-income housing under section 297A.71, 82.30subdivision 23 ; 82.31    (9) materials, supplies, and equipment for municipal electric utility facilities under 82.32section 297A.71, subdivision 35; 82.33    (10) equipment and materials used for the generation, transmission, and distribution 82.34of electrical energy and an aerial camera package exempt under section 297A.68, 82.35subdivision 37; 83.1    (11) tangible personal property and taxable services and construction materials, 83.2supplies, and equipment exempt under section 297A.68, subdivision 41; 83.3    (12) commuter rail vehicle and repair parts under section 297A.70, subdivision 83.43, clause (11); 83.5    (13) materials, supplies, and equipment for construction or improvement of projects 83.6and facilities under section 297A.71, subdivision 40; 83.7(14) materials, supplies, and equipment for construction or improvement of a meat 83.8processing facility exempt under section 297A.71, subdivision 41; 83.9(15) materials, supplies, and equipment for construction, improvement, or expansion 83.10of an aerospace defense manufacturing facility exempt under section 297A.71, subdivision 83.1142; and 83.12(16) enterprise information technology equipment and computer software for use in 83.13a qualified data center exempt under section 297A.68, subdivision 42 new text begin ; and new text end 83.14 new text begin (17) materials, supplies, and equipment for qualifying capital projects under section new text end 83.15 new text begin 297A.71, subdivision 34 new text end . 83.16    Sec. 4. Minnesota Statutes 2011 Supplement, section 297A.75, subdivision 2, is 83.17amended to read: 83.18    Subd. 2. Refund; eligible persons. Upon application on forms prescribed by the 83.19commissioner, a refund equal to the tax paid on the gross receipts of the exempt items 83.20must be paid to the applicant. Only the following persons may apply for the refund: 83.21    (1) for subdivision 1, clauses (1) to (3), the applicant must be the purchaser; 83.22    (2) for subdivision 1, clauses (4) and (7), the applicant must be the governmental 83.23subdivision; 83.24    (3) for subdivision 1, clause (5), the applicant must be the recipient of the benefits 83.25provided in United States Code, title 38, chapter 21; 83.26    (4) for subdivision 1, clause (6), the applicant must be the owner of the homestead 83.27property; 83.28    (5) for subdivision 1, clause (8), the owner of the qualified low-income housing 83.29project; 83.30    (6) for subdivision 1, clause (9), the applicant must be a municipal electric utility or 83.31a joint venture of municipal electric utilities; 83.32    (7) for subdivision 1, clauses (10), (11), (14), (15), and (16), the owner of the 83.33qualifying business; and 83.34    (8) for subdivision 1, clauses (12) and new text begin , new text end (13), new text begin and (17), new text end the applicant must be the 83.35governmental entity that owns or contracts for the project or facility. 84.1    Sec. 5. Minnesota Statutes 2011 Supplement, section 297A.75, subdivision 3, is 84.2amended to read: 84.3    Subd. 3. Application. (a) The application must include sufficient information 84.4to permit the commissioner to verify the tax paid. If the tax was paid by a contractor, 84.5subcontractor, or builder, under subdivision 1, clause (4), (5), (6), (7), (8), (9), (10), (11), 84.6(12), (13), (14), (15), or (16), new text begin or (17), new text end the contractor, subcontractor, or builder must 84.7furnish to the refund applicant a statement including the cost of the exempt items and the 84.8taxes paid on the items unless otherwise specifically provided by this subdivision. The 84.9provisions of sections 289A.40 and 289A.50 apply to refunds under this section. 84.10    (b) An applicant may not file more than two applications per calendar year for 84.11refunds for taxes paid on capital equipment exempt under section 297A.68, subdivision 5. 84.12    (c) Total refunds for purchases of items in section 297A.71, subdivision 40, must not 84.13exceed $5,000,000 in fiscal years 2010 and 2011. Applications for refunds for purchases 84.14of items in sections 297A.70, subdivision 3, paragraph (a), clause (11), and 297A.71, 84.15subdivision 40, must not be filed until after June 30, 2009. 84.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 84.17 new text begin June 30, 2013. new text end 84.18    Sec. 6. new text begin [297A.9905] USE OF LOCAL TAX REVENUES BY CITIES OF THE new text end 84.19 new text begin FIRST CLASS. new text end 84.20 new text begin (a) Notwithstanding section 297A.99, or other general or special law or charter new text end 84.21 new text begin provision, if the revenues from any local tax imposed on retail sales under special law new text end 84.22 new text begin by a city of the first class exceeds the amount needed to fund the uses authorized in the new text end 84.23 new text begin special law, the city may expend the excess revenue from the tax to fund other capital new text end 84.24 new text begin projects of regional significance. new text end 84.25 new text begin (b) For purposes of this section: new text end 84.26 new text begin (1) "city of the first class" has the meaning given in section 410.01; and new text end 84.27 new text begin (2) "capital project of regional significance" means construction, expansion, or new text end 84.28 new text begin renovation of a sports facility or convention or civic center, that has a construction cost new text end 84.29 new text begin of at least $40,000,000. new text end 84.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 84.31    Sec. 7. new text begin USE OF THE STADIUM. new text end 84.32     new text begin Subdivision 1. new text end new text begin Amateur sports use. new text end new text begin The lessee of the stadium must make the new text end 84.33 new text begin facilities of the stadium available to the Minnesota Amateur Sports Commission up to new text end 85.1 new text begin ten days each year on terms satisfactory to the commission for amateur sports activities new text end 85.2 new text begin consistent with Minnesota Statutes, chapter 240A, each year during the time the bonds new text end 85.3 new text begin issued pursuant to this act are outstanding. The commission must negotiate in good faith new text end 85.4 new text begin and may be required to pay no more than actual out-of-pocket expenses for the time new text end 85.5 new text begin it uses the stadium. new text end 85.6     new text begin Subd. 2. new text end new text begin High school league. new text end new text begin The lessee of the stadium must make the facilities of new text end 85.7 new text begin the stadium available for use by the Minnesota State High School League for at least seven new text end 85.8 new text begin days each year for high school soccer and football tournaments. The lessee of the stadium new text end 85.9 new text begin must provide, and may not charge the league a fee for, this use, including security, ticket new text end 85.10 new text begin takers, custodial or cleaning services, or other similar services in connection with this use. new text end 85.11ARTICLE 6 85.12STADIUM BLINK-ON FUNDING 85.13    Section 1. new text begin [16A.1524] BACKUP REVENUES; FOOTBALL STADIUM new text end 85.14 new text begin FUNDING. new text end 85.15     new text begin (a) If the commissioner of management and budget determines that the amount new text end 85.16 new text begin of revenues under section 297E.021, subdivision 2, for the next fiscal year will be less new text end 85.17 new text begin than the amounts specified in section 297E.021, subdivision 3, paragraph (a), clause new text end 85.18 new text begin (1), items (i) to (iii), for that fiscal year, the commissioner may implement the revenue new text end 85.19 new text begin options authorized in this article; provided that this section does not constitute a pledge of new text end 85.20 new text begin tax revenues as security for the payment of principal and interest on appropriation bonds new text end 85.21 new text begin issued under section 16A.695. If the commissioner determines to exercise the authority new text end 85.22 new text begin under this section for a fiscal year, the commissioner must implement the revenue options, new text end 85.23 new text begin as necessary, in the following order: new text end 85.24     new text begin (1) a sports-themed lottery game under section 349A.20; and new text end 85.25 new text begin (2) a tax on suites as provided under section 473J.14. new text end 85.26     new text begin (b) Revenue raised under the authority granted by this section must be deposited new text end 85.27 new text begin in the general fund. new text end 85.28     new text begin (c) If the commissioner determines to implement one or more of the revenue options new text end 85.29 new text begin authorized by this section, each subsequent year the commissioner must determine if new text end 85.30 new text begin the revenue is needed and will be imposed and collected for the next fiscal year. If the new text end 85.31 new text begin commissioner determines that one or more revenue options implemented for a fiscal year new text end 85.32 new text begin are not needed for a subsequent fiscal year, the commissioner must terminate them in the new text end 85.33 new text begin reverse order they were required to be implemented by paragraph (a) with the last option new text end 85.34 new text begin implemented terminated first and so forth. new text end 86.1     new text begin (d) Before implementing a revenue source authorized under this section, the new text end 86.2 new text begin commissioner must report the intent to do so to the Legislative Commission on Planning new text end 86.3 new text begin and Fiscal Policy. The commissioner must inform the commission of determinations to new text end 86.4 new text begin continue or discontinue each revenue source for a subsequent fiscal year. new text end 86.5 new text begin (e) The provisions of this section no longer apply after the Minnesota Sports new text end 86.6 new text begin Facilities Authority certifies to the commissioner that it has determined that the revenues new text end 86.7 new text begin of the general fund under section 297A.994, the increased revenues under chapter 297E, new text end 86.8 new text begin and other available resources of the authority provide adequate financial security for new text end 86.9 new text begin the state and the authority. new text end 86.10    Sec. 2. new text begin [349A.20] STADIUM, SPORTS-THEMED GAMES. new text end 86.11     new text begin The State Lottery shall conduct games based on stadium or professional sports new text end 86.12 new text begin themes to generate a minimum of $2,100,000 in additional revenue for the fiscal year for new text end 86.13 new text begin the general fund. Games issued under this section must comply with all NFL policies new text end 86.14 new text begin on use of trademarks, images, and logos. new text end 86.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective pursuant to the authority granted new text end 86.16 new text begin under section 1, on the day following final enactment. new text end 86.17    Sec. 3. new text begin [473J.14] SUITES TAX. new text end 86.18     new text begin (a) Upon notification by the commissioner of management and budget under section new text end 86.19 new text begin 16A.1524, the authority shall by resolution impose and maintain a ten percent tax on the new text end 86.20 new text begin gross receipts received for the rental of suites, sky boxes, and similar in the NFL stadium. new text end 86.21 new text begin (b) The tax must be imposed in the years specified by the commissioner of new text end 86.22 new text begin management and budget. The suites rental tax under paragraph (a) applies to the gross new text end 86.23 new text begin receipts, as defined under section 297A.61, received by the seller, as defined in section new text end 86.24 new text begin 297A.61, and is a debt owed by the seller to the authority. A tax imposed under this new text end 86.25 new text begin section is recoverable at law by the authority from the seller in the same manner as other new text end 86.26 new text begin debts. Every person granting, selling, or renting suites, sky boxes, or similar may be new text end 86.27 new text begin required, as provided in resolutions of the authority, to secure a permit, to file returns, to new text end 86.28 new text begin deposit security for the payment of the tax, and to pay the penalties for nonpayment and new text end 86.29 new text begin interest on late payments, as the authority deems necessary or expedient to assure the new text end 86.30 new text begin prompt and uniform collection of either or both of the taxes. new text end 86.31     new text begin (c) The authority shall remit the proceeds of a tax imposed under this section to the new text end 86.32 new text begin commissioner of management and budget for deposit in the state's general fund. new text end " 86.33Delete the title and insert: 86.34"A bill for an act 87.1relating to stadiums; providing for a new National Football League stadium in 87.2Minnesota; establishing a Minnesota Sports Facilities Authority; authorizing the 87.3sale and issuance of state appropriation bonds; abolishing the Metropolitan Sports 87.4Facilities Commission; providing for use of certain local tax revenue; providing 87.5for electronic pull-tab games, electronic linked bingo games, and sports-themed 87.6tipboard games; providing for the conditional imposition of certain taxes and 87.7collection of other revenues; modifying certain rates of tax on lawful gambling; 87.8appropriating money;amending Minnesota Statutes 2010, sections 3.971, 87.9subdivision 6; 3.9741, by adding a subdivision; 297A.71, by adding subdivisions; 87.10297E.01, subdivisions 7, 8, 9; 297E.02, subdivisions 1, 3, 6, 7, 10, 11, by adding 87.11a subdivision; 297E.13, subdivision 5; 349.12, subdivisions 3b, 3c, 5, 6a, 12a, 87.1218, 25, 25b, 25c, 25d, 29, 31, 32, 34, 35, by adding subdivisions; 349.13; 87.13349.151, subdivisions 4b, 4c, by adding subdivisions; 349.155, subdivisions 3, 4; 87.14349.161, subdivisions 1, 5; 349.162, subdivision 5; 349.163, subdivisions 1, 5, 87.156; 349.1635, subdivisions 2, 3, by adding a subdivision; 349.165, subdivision 87.162; 349.17, subdivisions 6, 7, 8, by adding a subdivision; 349.1711, subdivisions 87.171, 2; 349.1721; 349.18, subdivision 1; 349.19, subdivisions 2, 3, 5, 10; 87.18349.211, subdivisions 1a, 2c; 352.01, subdivision 2a; Minnesota Statutes 2011 87.19Supplement, sections 10A.01, subdivision 35; 297A.75, subdivisions 1, 2, 3; 87.20340A.404, subdivision 1; Laws 1986, chapter 396, sections 4, as amended; 5, as 87.21amended; proposing coding for new law in Minnesota Statutes, chapters 3; 16A; 87.22245; 297A; 297E; 349A; proposing coding for new law as Minnesota Statutes, 87.23chapter 473J; repealing Minnesota Statutes 2010, sections 297E.02, subdivision 87.244; 349.15, subdivision 3; 349.19, subdivision 2a." 88.1 We request the adoption of this report and repassage of the bill. 88.2 House Conferees: 88.3 ..... ..... 88.4 Morrie Lanning Joe Hoppe 88.5 ..... 88.6 Terry Morrow 88.7 Senate Conferees: 88.8 ..... ..... 88.9 Julie A. Rosen Bill G. Ingebrigtsen 88.10 ..... 88.11 Roger J. Reinert