SF 1856

2nd Unofficial Engrossment - 87th Legislature (2011 - 2012)

Posted on 04/24/2012 12:02 p.m.

1.1A bill for an act 1.2relating to stadiums; providing for a new National Football League stadium in 1.3Minnesota; establishing a Minnesota Stadium Authority; authorizing the sale 1.4and issuance of state appropriation bonds; abolishing the Metropolitan Sports 1.5Facilities Commission; providing for use of certain local tax revenue; providing 1.6for electronic pull-tab games, electronic linked bingo games, and sports-themed 1.7tipboard games; providing for the conditional imposition of certain taxes and 1.8collection of other revenues; modifying certain rates of tax on lawful gambling; 1.9appropriating money;amending Minnesota Statutes 2010, sections 3.971, 1.10subdivision 6; 3.9741, by adding a subdivision; 13.55, subdivision 1; 297E.01, 1.11subdivisions 7, 8, 9; 297E.02, subdivisions 1, 3, 6, 7, 10, 11, by adding a 1.12subdivision; 297E.13, subdivision 5; 349.12, subdivisions 3b, 3c, 5, 6a, 12a, 1.1318, 25, 25b, 25c, 25d, 29, 31, 32, 34, 35, by adding subdivisions; 349.13; 1.14349.151, subdivisions 4b, 4c, by adding subdivisions; 349.155, subdivisions 3, 4; 1.15349.161, subdivisions 1, 5; 349.162, subdivision 5; 349.163, subdivisions 1, 5, 6; 1.16349.1635, subdivisions 2, 3, by adding a subdivision; 349.165, subdivision 2; 1.17349.17, subdivisions 6, 7, 8, by adding a subdivision; 349.1711, subdivisions 1, 1.182; 349.1721; 349.18, subdivision 1; 349.19, subdivisions 2, 3, 5, 10; 349.211, 1.19subdivisions 1a, 2c; 352.01, subdivision 2a; 473.121, subdivision 5a; 473.164; 1.20473.565, subdivision 1; Minnesota Statutes 2011 Supplement, sections 10A.01, 1.21subdivision 35; 340A.404, subdivision 1; 473.757, subdivision 11; Laws 1986, 1.22chapter 396, sections 4, as amended; 5, as amended; proposing coding for new 1.23law in Minnesota Statutes, chapters 16A; 297A; 349A; proposing coding for new 1.24law as Minnesota Statutes, chapter 473J; repealing Minnesota Statutes 2010, 1.25sections 297E.02, subdivision 4; 349.15, subdivision 3; 349.19, subdivision 1.262a; 473.551; 473.552; 473.553, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 1.2713; 473.556, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 16, 17; 1.28473.561; 473.564, subdivisions 2, 3; 473.572; 473.581; 473.592, subdivision 1; 1.29473.595; 473.598; 473.599; 473.76. 1.30BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.31ARTICLE 1 1.32MINNESOTA STADIUM AUTHORITY 1.33    Section 1. Minnesota Statutes 2010, section 3.971, subdivision 6, is amended to read: 2.1    Subd. 6. Financial audits. The legislative auditor shall audit the financial 2.2statements of the state of Minnesota required by section 16A.50 and, as resources permit, 2.3shall audit Minnesota State Colleges and Universities, the University of Minnesota, state 2.4agencies, departments, boards, commissions, courts, and other state organizations subject 2.5to audit by the legislative auditor, including the State Agricultural Society, Agricultural 2.6Utilization Research Institute, Enterprise Minnesota, Inc., Minnesota Historical 2.7Society, Labor Interpretive Center, Minnesota Partnership for Action Against Tobacco, 2.8Metropolitan Sports Facilities Commission, new text begin Minnesota Stadium Authority, new text end Metropolitan 2.9Airports Commission, and Metropolitan Mosquito Control District. Financial audits 2.10must be conducted according to generally accepted government auditing standards. The 2.11legislative auditor shall see that all provisions of law respecting the appropriate and 2.12economic use of public funds are complied with and may, as part of a financial audit or 2.13separately, investigate allegations of noncompliance. 2.14    Sec. 2. Minnesota Statutes 2010, section 3.9741, is amended by adding a subdivision 2.15to read: 2.16     new text begin Subd. 4. new text end new text begin Minnesota Stadium Authority. new text end new text begin Upon the audit of the financial accounts new text end 2.17 new text begin and affairs of the Minnesota Stadium Authority, the authority is liable to the state for the new text end 2.18 new text begin total cost and expenses of the audit, including the salaries paid to the examiners while new text end 2.19 new text begin actually engaged in making the examination. The legislative auditor may bill the authority new text end 2.20 new text begin either monthly or at the completion of the audit. All collections received for the audits new text end 2.21 new text begin must be deposited in the general fund. new text end 2.22    Sec. 3. Minnesota Statutes 2011 Supplement, section 10A.01, subdivision 35, is 2.23amended to read: 2.24    Subd. 35. Public official. "Public official" means any: 2.25    (1) member of the legislature; 2.26    (2) individual employed by the legislature as secretary of the senate, legislative 2.27auditor, chief clerk of the house of representatives, revisor of statutes, or researcher, 2.28legislative analyst, or attorney in the Office of Senate Counsel and Research or House 2.29Research; 2.30    (3) constitutional officer in the executive branch and the officer's chief administrative 2.31deputy; 2.32    (4) solicitor general or deputy, assistant, or special assistant attorney general; 3.1    (5) commissioner, deputy commissioner, or assistant commissioner of any state 3.2department or agency as listed in section 15.01 or 15.06, or the state chief information 3.3officer; 3.4    (6) member, chief administrative officer, or deputy chief administrative officer of a 3.5state board or commission that has either the power to adopt, amend, or repeal rules under 3.6chapter 14, or the power to adjudicate contested cases or appeals under chapter 14; 3.7    (7) individual employed in the executive branch who is authorized to adopt, amend, 3.8or repeal rules under chapter 14 or adjudicate contested cases under chapter 14; 3.9    (8) executive director of the State Board of Investment; 3.10    (9) deputy of any official listed in clauses (7) and (8); 3.11    (10) judge of the Workers' Compensation Court of Appeals; 3.12    (11) administrative law judge or compensation judge in the State Office of 3.13Administrative Hearings or unemployment law judge in the Department of Employment 3.14and Economic Development; 3.15    (12) member, regional administrator, division director, general counsel, or operations 3.16manager of the Metropolitan Council; 3.17    (13) member or chief administrator of a metropolitan agency; 3.18    (14) director of the Division of Alcohol and Gambling Enforcement in the 3.19Department of Public Safety; 3.20    (15) member or executive director of the Higher Education Facilities Authority; 3.21    (16) member of the board of directors or president of Enterprise Minnesota, Inc.; 3.22    (17) member of the board of directors or executive director of the Minnesota State 3.23High School League; 3.24    (18) member of the Minnesota Ballpark Authority established in section 473.755; 3.25    (19) citizen member of the Legislative-Citizen Commission on Minnesota Resources; 3.26    (20) manager of a watershed district, or member of a watershed management 3.27organization as defined under section 103B.205, subdivision 13; 3.28    (21) supervisor of a soil and water conservation district; 3.29(22) director of Explore Minnesota Tourism; 3.30    (23) citizen member of the Lessard-Sams Outdoor Heritage Council established in 3.31section 97A.056; or 3.32(24) a citizen member of the Clean Water Council established in section 114D.30. new text begin ; or new text end 3.33 new text begin (25) member or chief executive of the Minnesota Stadium Authority established new text end 3.34 new text begin in section 473J.07. new text end 4.1    Sec. 4. Minnesota Statutes 2011 Supplement, section 340A.404, subdivision 1, is 4.2amended to read: 4.3    Subdivision 1. Cities. (a) A city may issue an on-sale intoxicating liquor license to 4.4the following establishments located within its jurisdiction: 4.5(1) hotels; 4.6(2) restaurants; 4.7(3) bowling centers; 4.8(4) clubs or congressionally chartered veterans organizations with the approval of 4.9the commissioner, provided that the organization has been in existence for at least three 4.10years and liquor sales will only be to members and bona fide guests, except that a club 4.11may permit the general public to participate in a wine tasting conducted at the club under 4.12section 340A.419; 4.13 new text begin (5) sports facilities, restaurants, clubs, or bars located on land owned or leased by new text end 4.14 new text begin the Minnesota Stadium Authority; new text end 4.15(5) new text begin (6) new text end sports facilities located on land owned by the Metropolitan Sports 4.16Commission; and 4.17(6) new text begin (7) new text end exclusive liquor stores. 4.18(b) A city may issue an on-sale intoxicating liquor license, an on-sale wine license, 4.19or an on-sale malt liquor license to a theater within the city, notwithstanding any law, local 4.20ordinance, or charter provision. A license issued under this paragraph authorizes sales on 4.21all days of the week to persons attending events at the theater. 4.22(c) A city may issue an on-sale intoxicating liquor license, an on-sale wine license, 4.23or an on-sale malt liquor license to a convention center within the city, notwithstanding 4.24any law, local ordinance, or charter provision. A license issued under this paragraph 4.25authorizes sales on all days of the week to persons attending events at the convention 4.26center. This paragraph does not apply to convention centers located in the seven-county 4.27metropolitan area. 4.28(d) A city may issue an on-sale wine license and an on-sale malt liquor license to 4.29a person who is the owner of a summer collegiate league baseball team, or to a person 4.30holding a concessions or management contract with the owner, for beverage sales at a 4.31ballpark or stadium located within the city for the purposes of summer collegiate league 4.32baseball games at the ballpark or stadium, notwithstanding any law, local ordinance, or 4.33charter provision. A license issued under this paragraph authorizes sales on all days of the 4.34week to persons attending baseball games at the ballpark or stadium. 4.35    Sec. 5. Minnesota Statutes 2010, section 352.01, subdivision 2a, is amended to read: 5.1    Subd. 2a. Included employees. (a) "State employee" includes: 5.2    (1) employees of the Minnesota Historical Society; 5.3    (2) employees of the State Horticultural Society; 5.4    (3) employees of the Minnesota Crop Improvement Association; 5.5    (4) employees of the adjutant general whose salaries are paid from federal funds and 5.6who are not covered by any federal civilian employees retirement system; 5.7    (5) employees of the Minnesota State Colleges and Universities who are employed 5.8under the university or college activities program; 5.9    (6) currently contributing employees covered by the system who are temporarily 5.10employed by the legislature during a legislative session or any currently contributing 5.11employee employed for any special service as defined in subdivision 2b, clause (8); 5.12    (7) employees of the legislature who are appointed without a limit on the duration 5.13of their employment and persons employed or designated by the legislature or by a 5.14legislative committee or commission or other competent authority to conduct a special 5.15inquiry, investigation, examination, or installation; 5.16    (8) trainees who are employed on a full-time established training program 5.17performing the duties of the classified position for which they will be eligible to receive 5.18immediate appointment at the completion of the training period; 5.19    (9) employees of the Minnesota Safety Council; 5.20    (10) any employees who are on authorized leave of absence from the Transit 5.21Operating Division of the former Metropolitan Transit Commission and who are employed 5.22by the labor organization which is the exclusive bargaining agent representing employees 5.23of the Transit Operating Division; 5.24    (11) employees of the Metropolitan Council, Metropolitan Parks and Open Space 5.25Commission, Metropolitan Sports Facilities Commission, or Metropolitan Mosquito 5.26Control Commission unless excluded under subdivision 2b or are covered by another 5.27public pension fund or plan under section 473.415, subdivision 3; 5.28    (12) judges of the Tax Court; 5.29    (13) personnel who were employed on June 30, 1992, by the University of 5.30Minnesota in the management, operation, or maintenance of its heating plant facilities, 5.31whose employment transfers to an employer assuming operation of the heating plant 5.32facilities, so long as the person is employed at the University of Minnesota heating plant 5.33by that employer or by its successor organization; 5.34    (14) personnel who are employed as seasonal employees in the classified or 5.35unclassified service; 6.1    (15) persons who are employed by the Department of Commerce as a peace officer 6.2in the Insurance Fraud Prevention Division under section 45.0135 who have attained the 6.3mandatory retirement age specified in section 43A.34, subdivision 4; 6.4    (16) employees of the University of Minnesota unless excluded under subdivision 6.52b, clause (3); 6.6    (17) employees of the Middle Management Association whose employment began 6.7after July 1, 2007, and to whom section 352.029 does not apply; and 6.8    (18) employees of the Minnesota Government Engineers Council to whom section 6.9352.029 does not apply. new text begin ; and new text end 6.10 new text begin (19) employees of the Minnesota Stadium Authority. new text end 6.11    (b) Employees specified in paragraph (a), clause (13), are included employees under 6.12paragraph (a) if employer and employee contributions are made in a timely manner in the 6.13amounts required by section 352.04. Employee contributions must be deducted from 6.14salary. Employer contributions are the sole obligation of the employer assuming operation 6.15of the University of Minnesota heating plant facilities or any successor organizations to 6.16that employer. 6.17    Sec. 6. new text begin [473J.01] PURPOSE. new text end 6.18 new text begin The purpose of this chapter is to provide for the construction, financing, and new text end 6.19 new text begin long-term use of a stadium and related stadium infrastructure as a venue for professional new text end 6.20 new text begin football and a broad range of other civic, community, athletic, educational, cultural, new text end 6.21 new text begin and commercial activities. The legislature finds and declares that the expenditure of new text end 6.22 new text begin public money for this purpose is necessary and serves a public purpose, and that property new text end 6.23 new text begin acquired by the Minnesota Stadium Authority for the construction of the stadium and new text end 6.24 new text begin related stadium infrastructure is acquired for a public use or public purpose under chapter new text end 6.25 new text begin 117. The legislature further finds and declares that any provision in a lease or use new text end 6.26 new text begin agreement with a professional football team that requires the team to play all of its home new text end 6.27 new text begin games in a publicly funded stadium for the duration of the lease or use agreement, with the new text end 6.28 new text begin occasional exception of a game played elsewhere as set forth in such agreement, serves new text end 6.29 new text begin a unique public purpose for which the remedies of specific performance and injunctive new text end 6.30 new text begin relief are essential to its enforcement. The legislature further finds and declares that new text end 6.31 new text begin government assistance to facilitate the presence of professional football provides to the new text end 6.32 new text begin state of Minnesota and its citizens highly valued intangible benefits that are virtually new text end 6.33 new text begin impossible to quantify and, therefore, not recoverable even if the government receives new text end 6.34 new text begin monetary damages in the event of a team's breach of contract. Minnesota courts are, new text end 7.1 new text begin therefore, charged with protecting those benefits through the use of specific performance new text end 7.2 new text begin and injunctive relief as provided in this chapter and in the lease and use agreements. new text end 7.3    Sec. 7. new text begin [473J.03] DEFINITIONS. new text end 7.4     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 7.5 new text begin this section have the meanings given them, except as otherwise expressly provided or new text end 7.6 new text begin indicated by the context. new text end 7.7     new text begin Subd. 2. new text end new text begin Annual adjustment factor. new text end new text begin "Annual adjustment factor" means the annual new text end 7.8 new text begin adjustment factor under section 297A.994, subdivision 4, paragraph (b). new text end 7.9     new text begin Subd. 3. new text end new text begin Authority. new text end new text begin "Authority" means the Minnesota Stadium Authority new text end 7.10 new text begin established under section 473J.07. new text end 7.11     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 7.12     new text begin Subd. 5. new text end new text begin NFL. new text end new text begin The "NFL" means the National Football League. new text end 7.13     new text begin Subd. 6. 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 7.14 new text begin professional football team known, as of the effective date of this chapter, as the Minnesota new text end 7.15 new text begin Vikings or any team owned and operated by someone who purchases or otherwise takes new text end 7.16 new text begin ownership or control of or reconstitutes the NFL team known as the Minnesota Vikings. new text end 7.17     new text begin Subd. 7. new text end new text begin Stadium. new text end new text begin "Stadium" means the stadium suitable for professional football new text end 7.18 new text begin to be designed, constructed, and financed under this chapter. A stadium must have a roof new text end 7.19 new text begin that covers the stadium, as set forth in section 473J.11, subdivision 3. new text end 7.20     new text begin Subd. 8. 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 7.21 new text begin costs of stadium infrastructure, and of designing, constructing, equipping, and financing a new text end 7.22 new text begin stadium suitable for professional football. new text end 7.23     new text begin Subd. 9. new text end new text begin Stadium infrastructure. new text end new text begin "Stadium infrastructure" means plazas, parking new text end 7.24 new text begin structures, rights of way, connectors, skyways and tunnels, and other such property, new text end 7.25 new text begin facilities, and improvements, owned by the authority or determined by the authority to new text end 7.26 new text begin facilitate the use and development of the stadium. new text end 7.27     new text begin Subd. 10. 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 7.28 new text begin the existing football stadium and adjacent areas, bounded generally by Park and Eleventh new text end 7.29 new text begin Avenues and Third and Sixth Streets in the city of Minneapolis, the definitive boundaries new text end 7.30 new text begin of which shall be determined by the authority and agreed to by the NFL team. new text end 7.31    Sec. 8. new text begin [473J.07] MINNESOTA STADIUM AUTHORITY. new text end 7.32     new text begin Subdivision 1. new text end new text begin Established. new text end new text begin The Minnesota Stadium Authority is established as a new text end 7.33 new text begin public body, corporate and politic, and political subdivision of the state. The authority is new text end 7.34 new text begin not a joint powers entity or an agency or instrumentality of the city. new text end 8.1     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 8.2 new text begin (b) The chair and two members shall be appointed by the governor. One member new text end 8.3 new text begin appointed by the governor shall serve until December 31 of the third year following new text end 8.4 new text begin appointment and one member shall serve until December 31 of the fourth year following new text end 8.5 new text begin appointment. Thereafter, members appointed by the governor shall serve four-year terms, new text end 8.6 new text begin beginning January 1. Each member serves until a successor is appointed and takes office. new text end 8.7 new text begin The chair serves at the pleasure of the governor. Appointments under this paragraph are new text end 8.8 new text begin subject to the advice and consent of the senate. Senate confirmation shall be as provided new text end 8.9 new text begin by section 15.066. new text end 8.10 new text begin (c) The mayor of the city shall appoint two members to the authority. One member new text end 8.11 new text begin appointed by the mayor of the city shall serve until December 31 of the third year new text end 8.12 new text begin following appointment and one member shall serve until December 31 of the fourth year new text end 8.13 new text begin following appointment. Thereafter, members appointed under this paragraph shall serve new text end 8.14 new text begin four-year terms beginning January 1. Each member serves until a successor is appointed new text end 8.15 new text begin and takes office. Members appointed under this paragraph may reside within the city and new text end 8.16 new text begin may be appointed officials of a political subdivision. new text end 8.17 new text begin (d) The initial members of the authority must be appointed not later than 30 days new text end 8.18 new text begin after the date of enactment of this chapter. new text end 8.19     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 8.20 new text begin chair, as provided in section 15.0575. The chair shall receive, unless otherwise provided new text end 8.21 new text begin by other law, a salary in an amount fixed by the authority, and shall be reimbursed for new text end 8.22 new text begin reasonable expenses to the same extent as a member. new text end 8.23     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 8.24 new text begin performs all other assigned duties and functions. The authority may appoint from among new text end 8.25 new text begin its members a vice-chair to act for the chair during the temporary absence or disability of new text end 8.26 new text begin the chair, and any other officers the authority determines are necessary or convenient. new text end 8.27     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 8.28 new text begin appointing authority only for misfeasance, malfeasance, or nonfeasance in office, upon new text end 8.29 new text begin written charges, and after an opportunity to be heard in defense of the charges. new text end 8.30     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 8.31 new text begin the powers and duties of its officers, and other matters relating to the governance of the new text end 8.32 new text begin authority and the exercise of its powers. Except as provided in this section, the bylaws new text end 8.33 new text begin adopted under this subdivision must be similar in form and substance to bylaws adopted new text end 8.34 new text begin by the Minnesota Ballpark Authority pursuant to section 473.755. new text end 9.1     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 9.2 new text begin authority once each year or as often as the legislative auditor's funds and personnel permit. new text end 9.3 new text begin The authority shall pay the total cost of the audit pursuant to section 3.9741. new text end 9.4     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 9.5 new text begin director to serve as the chief executive officer of the authority. The executive director new text end 9.6 new text begin serves at the pleasure of the authority and receives compensation as determined by the new text end 9.7 new text begin authority. The executive director may be responsible for the operation, management, and new text end 9.8 new text begin promotion of activities of the authority, as prescribed by the authority. The executive new text end 9.9 new text begin director has the powers necessarily incident to the performance of duties required and new text end 9.10 new text begin powers granted by the authority, but does not have authority to incur liability or make new text end 9.11 new text begin expenditures on behalf of the authority without general or specific directions by the new text end 9.12 new text begin authority, as shown by the bylaws or minutes of a meeting of the authority. The executive new text end 9.13 new text begin director is responsible for hiring, supervision, and dismissal of all other employees of new text end 9.14 new text begin the authority. new text end 9.15     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 9.16 new text begin information to the public concerning all actions taken by the authority. At a minimum, the new text end 9.17 new text begin Web site must contain a current version of the authority's bylaws, notices of upcoming new text end 9.18 new text begin meetings, minutes of the authority's meetings, and contact telephone, electronic mail, and new text end 9.19 new text begin facsimile numbers for public comments. new text end 9.20     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 9.21 new text begin the conduct of business and action may be taken upon the vote of a majority of members new text end 9.22 new text begin present at a meeting duly called and held. During the design and construction stages of the new text end 9.23 new text begin stadium, a four-fifths vote of the authority is required for authority decisions related to new text end 9.24 new text begin zoning, land use, exterior design of the stadium, related parking, the plaza area, and the new text end 9.25 new text begin selection of the authority's lead representative during design and construction. new text end 9.26    Sec. 9. new text begin [473J.08] LOCATION. new text end 9.27 new text begin The stadium to be constructed under this chapter shall be located at the stadium new text end 9.28 new text begin site in the city of Minneapolis. new text end 9.29    Sec. 10. new text begin [473J.09] POWERS, DUTIES OF THE AUTHORITY. new text end 9.30     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 9.31 new text begin body and the stadium and stadium infrastructure are public improvements within the new text end 9.32 new text begin meaning of chapter 562. The authority is a municipality within the meaning of chapter 466. new text end 9.33     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 9.34 new text begin private entity by lease, purchase, gift, or devise all necessary right, title, and interest in new text end 10.1 new text begin and to real property, air rights, and personal property deemed necessary to the purposes new text end 10.2 new text begin contemplated by this chapter. The authority may acquire, by the exercise of condemnation new text end 10.3 new text begin powers under chapter 117, land, other real property, air rights, personal property, and other new text end 10.4 new text begin right, title, and interest in property, within the stadium site and stadium infrastructure. new text end 10.5     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 10.6 new text begin dispose of any real or personal property acquired by the authority that is no longer required new text end 10.7 new text begin for accomplishment of the authority's purposes. The property may be sold in accordance new text end 10.8 new text begin with the procedures provided by section 469.065, except subdivisions 6 and 7, to the new text end 10.9 new text begin extent the authority deems it to be practical and consistent with this chapter. Title to the new text end 10.10 new text begin stadium must not be transferred or sold by the authority prior to the effective date of new text end 10.11 new text begin enactment of any legislation approving such transfer or sale. new text end 10.12     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 10.13 new text begin chapter, the authority is subject to chapters 13 and 13D. new text end 10.14     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 10.15 new text begin own, operate, manage, maintain, finance, and control the stadium, stadium infrastructure, new text end 10.16 new text begin and related facilities constructed or acquired under this chapter, or may delegate such new text end 10.17 new text begin duties through an agreement, subject to the rights and obligations transferred to and new text end 10.18 new text begin assumed by the authority, the NFL team, other user, third-party manager, or program new text end 10.19 new text begin manager, under the terms of a lease, use agreement, or development agreement. new text end 10.20     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 10.21 new text begin and contract for services necessary to carry out its functions, including the utilization of new text end 10.22 new text begin employees and consultants retained by other governmental entities. The authority shall new text end 10.23 new text begin enter into an agreement with the city regarding traffic control for the stadium. new text end 10.24     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 10.25 new text begin property, services, and grants or loans of money or other property from the United States, new text end 10.26 new text begin the state, any subdivision of the state, any agency of those entities, or any person for any new text end 10.27 new text begin of its purposes, and may enter into any agreement required in connection with the gifts, new text end 10.28 new text begin grants, or loans. The authority shall hold, use, and dispose of the money, property, or new text end 10.29 new text begin services according to the terms of the monetary contributions, grant, loan, or agreement. new text end 10.30     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 10.31 new text begin agreements and may fix, alter, charge, and collect rents, fees, and charges for the use, new text end 10.32 new text begin occupation, and availability of part or all of any premises, property, or facilities under new text end 10.33 new text begin its ownership, operation, or control for purposes that will provide athletic, educational, new text end 10.34 new text begin cultural, commercial, or other entertainment, instruction, or activity for the citizens of new text end 10.35 new text begin Minnesota and visitors. The use agreements may provide that the other contracting party new text end 10.36 new text begin has exclusive use of the premises at the times agreed upon, as well as the right to retain new text end 11.1 new text begin some or all revenues from ticket sales, suite licenses, concessions, advertising, naming new text end 11.2 new text begin rights, NFL team designated broadcast/media, club seats, signage, and other revenues new text end 11.3 new text begin derived from the stadium. The lease or use agreement with an NFL team must provide for new text end 11.4 new text begin the payment by the NFL team of an agreed-upon portion of operating and maintenance new text end 11.5 new text begin costs and expenses and provide other terms in which the authority and NFL team agree. In new text end 11.6 new text begin no case may a lease or use agreement permit smoking in the stadium. new text end 11.7     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 11.8 new text begin collect and analyze data; prepare reports, maps, charts, and tables; and conduct all new text end 11.9 new text begin necessary hearings and investigations in connection with its functions. new text end 11.10     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 11.11 new text begin with the authority an individual bond or fidelity insurance policy. The authority may new text end 11.12 new text begin procure insurance in the amounts the authority considers necessary against liability of the new text end 11.13 new text begin authority or its officers and employees for personal injury or death and property damage or new text end 11.14 new text begin destruction, consistent with chapter 466, and against risks of damage to or destruction of new text end 11.15 new text begin any of its facilities, equipment, or other property. new text end 11.16     new text begin Subd. 11. new text end new text begin Exemption from Metropolitan Council review; Business Subsidy Act. new text end 11.17 new text begin The acquisition and betterment of a stadium and stadium infrastructure by the authority new text end 11.18 new text begin must be conducted pursuant to this chapter and are not subject to sections 473.165 and new text end 11.19 new text begin 473.173. Section 116J.994 does not apply to any transactions of the authority or other new text end 11.20 new text begin governmental entity related to the stadium or stadium infrastructure or to any tenant or new text end 11.21 new text begin other users of the stadium or stadium infrastructure. new text end 11.22     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 11.23 new text begin chapter, the authority has all powers necessary or incidental thereto. new text end 11.24     new text begin Subd. 13. new text end new text begin Transfers to the authority. new text end new text begin In addition to any other payments required new text end 11.25 new text begin under this act, for operating years 2016 to 2020, the NFL team shall annually transfer to new text end 11.26 new text begin the authority amounts equal to the city of Minneapolis share of operating costs and capital new text end 11.27 new text begin reserves. These amounts shall be repaid to the NFL team by the state on behalf of the city new text end 11.28 new text begin of Minneapolis through a repayment schedule to be specified in law, and agreed to in all new text end 11.29 new text begin subsequent agreements between the city and the NFL team. new text end 11.30    Sec. 11. new text begin [473J.11] STADIUM DESIGN AND CONSTRUCTION. new text end 11.31     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 11.32 new text begin stadium shall be a collaborative process between the authority and the NFL team. The new text end 11.33 new text begin authority and the NFL team shall establish a process to reach consensus on key elements new text end 11.34 new text begin of the stadium program and design, development, and construction. new text end 11.35 new text begin (b) Unless the authority and the NFL team agree otherwise: new text end 12.1 new text begin (1) the authority shall create a stadium design and construction group, including new text end 12.2 new text begin representatives of the authority and the NFL team, to manage the design of the stadium new text end 12.3 new text begin and oversee construction; new text end 12.4 new text begin (2) this group shall engage an owner's representative to act on behalf of the group. new text end 12.5 new text begin The cost of the owner's representative shall be a stadium cost; and new text end 12.6 new text begin (3) the authority and the NFL team shall enter into a development administration new text end 12.7 new text begin agreement providing for rights and responsibilities of the authority and the NFL team, the new text end 12.8 new text begin design and construction group, and the owner's representative for design and construction new text end 12.9 new text begin of the stadium, including but not limited to establishment of minimum design standards. new text end 12.10 new text begin This development administration agreement shall provide for binding arbitration in new text end 12.11 new text begin the event that the authority and the NFL team are unable to agree on minimum design new text end 12.12 new text begin standards or other material aspects of the design. new text end 12.13 new text begin (c) The authority may enter into an agreement with the NFL team and any other new text end 12.14 new text begin entity relating to the design, construction, financing, operation, maintenance, and use of new text end 12.15 new text begin the stadium and related facilities and stadium infrastructure. The authority may contract new text end 12.16 new text begin for materials, supplies, and equipment in accordance with section 471.345, except that new text end 12.17 new text begin the authority may employ or contract with persons, firms, or corporations to perform one new text end 12.18 new text begin or more or all of the functions of architect, engineer, construction manager, or program new text end 12.19 new text begin manager with respect to all or any part of the design, construction, financing, operation, new text end 12.20 new text begin maintenance, and use of the stadium and stadium infrastructure under the traditional new text end 12.21 new text begin separate design and build, integrated design-build, construction manager at risk, or new text end 12.22 new text begin public/private partnership (P3) structures, or a combination thereof. new text end 12.23 new text begin (d) The authority and the NFL team shall prepare a request for proposals for one or new text end 12.24 new text begin more of the functions described in paragraph (c). The request must be published in the new text end 12.25 new text begin State Register and shall include, at a minimum, such requirements that are agreed to by new text end 12.26 new text begin the authority and the NFL team. The authority and the NFL team may prequalify offerors new text end 12.27 new text begin by issuing a request for qualifications, in advance of the request for proposals, and select a new text end 12.28 new text begin short list of responsible offerors prior to discussions and evaluations. new text end 12.29 new text begin (e) As provided in the request for proposals, the authority, and the NFL team, may new text end 12.30 new text begin conduct discussions and negotiations with responsible offerors in order to determine new text end 12.31 new text begin which proposal is most advantageous to the authority and the NFL team and to negotiate new text end 12.32 new text begin the terms of an agreement. In conducting discussions, there shall be no disclosure of any new text end 12.33 new text begin information derived from proposals submitted by competing offerors and the content of all new text end 12.34 new text begin proposals is nonpublic data under chapter 13 until such time as a notice to award a contract new text end 12.35 new text begin is given by the authority. The agreement shall be subject to the approval of the NFL team. new text end 13.1 new text begin (f) Prior to the time the authority enters into a construction contract with a new text end 13.2 new text begin construction manager or program manager certifying a maximum price and a completion new text end 13.3 new text begin date as provided in paragraph (h), at the request of the NFL team, the authority may new text end 13.4 new text begin authorize, such authorization not to be unreasonably withheld or delayed, the NFL team new text end 13.5 new text begin to provide for management of the construction of the stadium and related stadium new text end 13.6 new text begin infrastructure, in which event the NFL team must assume the role and responsibilities new text end 13.7 new text begin of the authority for completion of construction in a manner consistent with the agreed new text end 13.8 new text begin minimum design standards and design documents, subject to the terms of this act, new text end 13.9 new text begin including responsibility for cost overruns. new text end 13.10 new text begin (g) The construction manager or program manager may enter into contracts with new text end 13.11 new text begin contractors for labor, materials, supplies, and equipment for the construction of the new text end 13.12 new text begin stadium and related stadium infrastructure through the process of public bidding, except new text end 13.13 new text begin that the construction manager or program manager may, with the consent of the authority new text end 13.14 new text begin or the NFL team if the NFL team has assumed responsibility for construction: new text end 13.15 new text begin (1) narrow the listing of eligible bidders to those which the construction manager new text end 13.16 new text begin or program manager determines to possess sufficient expertise to perform the intended new text end 13.17 new text begin functions; new text end 13.18 new text begin (2) award contracts to the contractors that the construction manager or program new text end 13.19 new text begin manager determines provide the best value under a request for proposals as described in new text end 13.20 new text begin section 16C.28, subdivision 1, paragraphs (a), clause (2), and (c), which are not required new text end 13.21 new text begin to be the lowest responsible bidder; and new text end 13.22 new text begin (3) for work the construction manager or program manager determines to be critical new text end 13.23 new text begin to the completion schedule, award contracts on the basis of competitive proposals, or new text end 13.24 new text begin perform work with its own forces without soliciting competitive bids if the construction new text end 13.25 new text begin manager or program manager provides evidence of competitive pricing. new text end 13.26 new text begin (h) The authority and the NFL team shall require that the construction manager or new text end 13.27 new text begin program manager certify, before the contract is signed, a fixed and stipulated construction new text end 13.28 new text begin price and completion date to the authority and post a performance bond in an amount new text end 13.29 new text begin at least equal to 100 percent of the certified price or such other security satisfactory to new text end 13.30 new text begin the authority, to cover any costs which may be incurred in excess of the certified price new text end 13.31 new text begin including, but not limited to, costs incurred by the authority or loss of revenues resulting new text end 13.32 new text begin from incomplete construction on the completion date. The authority may secure surety new text end 13.33 new text begin bonds as provided in section 574.26, securing payment of just claims in connection with new text end 13.34 new text begin all public work undertaken by the authority. Persons entitled to the protection of the new text end 13.35 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 13.36 new text begin lien on any property of the authority under the provisions of sections 514.01 to 514.16. new text end 14.1 new text begin The construction of the stadium is a project as that term is defined in section 177.42, new text end 14.2 new text begin subdivision 2, and is subject to the prevailing wage law under sections 177.41 to 177.43. new text end 14.3     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 14.4 new text begin if either party requests an agreed upon change in minimum design standards, and this new text end 14.5 new text begin change is responsible for requiring the project to exceed the stated budget, the requesting new text end 14.6 new text begin party is liable for any cost overruns or associated liabilities. new text end 14.7     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 14.8 new text begin and constructed incorporating the following general program and design elements: new text end 14.9 new text begin (1) Unless otherwise agreed to by the authority and the NFL team, the stadium new text end 14.10 new text begin shall comprise approximately 1,500,000 square feet with approximately 65,000 seats, new text end 14.11 new text begin expandable to 72,000, shall meet or exceed NFL program requirements, and include new text end 14.12 new text begin approximately 150 suites and approximately 7,500 club seats or other such components as new text end 14.13 new text begin agreed to by the authority and the NFL team; new text end 14.14 new text begin (2) space for NFL team-related exhibitions and sales, which shall include the new text end 14.15 new text begin following: NFL team museum and Hall of Fame, retail merchandise and gift shop retail new text end 14.16 new text begin venues, and themed concessions and restaurants; new text end 14.17 new text begin (3) year-round space for the NFL team administrative operations, sales, and new text end 14.18 new text begin marketing, including a ticket office, team meeting space, locker, and training rooms; new text end 14.19 new text begin (4) space for administrative offices of the authority; new text end 14.20 new text begin (5) 2,000 parking spaces within one block of the stadium, connected by skyway or new text end 14.21 new text begin tunnel to the stadium, and 500 parking spaces within two blocks of the stadium, with a new text end 14.22 new text begin dedicated walkway on game days; new text end 14.23 new text begin (6) elements sufficient to provide community and civic uses as determined by the new text end 14.24 new text begin authority; and new text end 14.25 new text begin (7) a roof that is fixed or retractable, provided that if the roof is retractable, it is new text end 14.26 new text begin accomplished without any increase to the funding provided by the state or the city. new text end 14.27     new text begin Subd. 4. new text end new text begin Cost overruns, savings. new text end new text begin The authority may accept financial obligations new text end 14.28 new text begin relating to cost overruns associated with acquisition of the stadium site, stadium new text end 14.29 new text begin infrastructure, and stadium design, development, and construction, provided that the new text end 14.30 new text begin authority shall not accept responsibility for cost overruns and shall not be responsible for new text end 14.31 new text begin cost overruns if the authority has authorized the NFL team to provide for management new text end 14.32 new text begin of construction of the stadium under section 473J.11, subdivision 1. Cost savings or new text end 14.33 new text begin additional funds obtained by the authority or the NFL team for the stadium or stadium new text end 14.34 new text begin infrastructure may be used first to fund additional stadium or stadium infrastructure, as new text end 14.35 new text begin agreed to by the authority and the NFL team, if any, and then to fund capital reserves. new text end 15.1    Sec. 12. new text begin [473J.112] COMMEMORATIVE BRICKS. new text end 15.2 new text begin The authority shall sell commemorative bricks to be displayed at a prominent new text end 15.3 new text begin location in the new stadium, for an amount to be determined by the authority. The new text end 15.4 new text begin authority shall work with the commissioner to ensure that purchase of a brick is a tax new text end 15.5 new text begin deductible donation on the part of the donating person or organization. Funds raised new text end 15.6 new text begin through this section shall be appropriated to the commissioner of management and budget new text end 15.7 new text begin for a grant to the Minnesota Stadium Authority. new text end 15.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 15.9    Sec. 13. new text begin [473J.12] EMPLOYMENT. new text end 15.10     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 15.11 new text begin management, operation, maintenance and capital repair, replacement and improvement of new text end 15.12 new text begin the stadium and stadium infrastructure, the authority shall make every effort to employ, new text end 15.13 new text begin and cause the NFL team, the construction manager and other subcontractors, vendors, and new text end 15.14 new text begin concessionaires to employ women and members of minority communities when hiring. new text end 15.15 new text begin Further, goals for construction contracts to be awarded to women- and minority-owned new text end 15.16 new text begin businesses will be in a percentage at least equal to the minimum used for city of new text end 15.17 new text begin Minneapolis development projects, and the other construction workforce will establish new text end 15.18 new text begin workforce utilization goals at least equal to current city goals and include workers from new text end 15.19 new text begin city zip codes that have high rates of poverty and unemployment. new text end 15.20     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 15.21 new text begin food, beverage, retail, and concession workers presently employed by the NFL team or new text end 15.22 new text begin the Metropolitan Sports Facilities Commission or its vendors at the existing football new text end 15.23 new text begin stadium the opportunity to continue their employment in comparable positions at the new new text end 15.24 new text begin stadium. Workers who are presently represented under a collective bargaining agreement new text end 15.25 new text begin may seek to continue such representation in the facility and designate such, or another new text end 15.26 new text begin collective bargaining unit, as their representative. new text end 15.27    Sec. 14. new text begin [473J.13] STADIUM OPERATIONS; CAPITAL IMPROVEMENTS. new text end 15.28     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 15.29 new text begin manner, similar to and consistent with other comparable NFL stadiums, such as the new text end 15.30 new text begin stadium currently known as Lucas Oil Field. The authority and the team will mutually new text end 15.31 new text begin agree on a third-party management company or individual to manage the stadium and on new text end 15.32 new text begin certain major vendors to the stadium. The authority, with the approval of the NFL team, new text end 15.33 new text begin may enter into an agreement with a program manager for management of the stadium, for new text end 15.34 new text begin a maximum of 30 years. new text end 16.1     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 16.2 new text begin all operating expenses of the stadium. The authority must require in the lease or use new text end 16.3 new text begin agreement with the NFL team that the NFL team pay the authority, beginning January 1, new text end 16.4 new text begin 2016, or other date as mutually agreed upon by the parties, toward operating costs of the new text end 16.5 new text begin stadium, $8,500,000 each year, increased by a three percent annual inflation rate. new text end 16.6 new text begin (b) Beginning January 1, 2016, or other date as mutually agreed upon by the new text end 16.7 new text begin parties, and continuing through 2020, the NFL team shall pay the authority operating new text end 16.8 new text begin expenses, $6,000,000 each year, increased by an annual adjustment factor. The payment new text end 16.9 new text begin of $6,000,000 per year beginning in 2016 is a payment by the team, which shall be repaid new text end 16.10 new text begin to the team by the state, using funds as provided under section 297A.994, subdivision 4, new text end 16.11 new text begin clause (4). After 2020, the state shall assume this payment, using funds generated in new text end 16.12 new text begin accordance with the city of Minneapolis as specified under section 287A.994. new text end 16.13 new text begin (c) The authority may establish an operating reserve to cover operating expense new text end 16.14 new text begin shortfalls and may accept funds from any source for deposit in the operating reserve. The new text end 16.15 new text begin establishment or funding of an authority operating reserve must not decrease the amounts new text end 16.16 new text begin required to be paid to the authority toward operating costs under this subdivision unless new text end 16.17 new text begin agreed to by the authority. new text end 16.18 new text begin (d) The authority will be responsible for operating cost overruns. new text end 16.19 new text begin (e) After the joint selection of the third-party manager or program manager, the new text end 16.20 new text begin authority may agree with a program manager or other third-party manager of the stadium new text end 16.21 new text begin on a fixed cost operating, management, or employment agreement with operating new text end 16.22 new text begin cost protections under which the program manager or third-party manager assumes new text end 16.23 new text begin responsibility for stadium operating costs and shortfalls. The agreement with the manager new text end 16.24 new text begin must require the manager to prepare an initial and ongoing operating plan and operating new text end 16.25 new text begin budgets for approval by the authority in consultation with the NFL team. The manager new text end 16.26 new text begin must agree to operate the stadium in accordance with the approved operating plan and new text end 16.27 new text begin operating budget. new text end 16.28     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 16.29 new text begin amateur sports, community, and civic events, and other public events in type and on terms new text end 16.30 new text begin consistent with those currently held at the existing football stadium, as defined in section new text end 16.31 new text begin 473.551, subdivision 9. The authority may provide that these events have exclusive use new text end 16.32 new text begin of the premises at agreed-upon times subject to the scheduling rights of the NFL team new text end 16.33 new text begin under the lease or use agreement. new text end 16.34     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 16.35 new text begin reserve fund. The authority shall be responsible for making, or for causing others to new text end 16.36 new text begin make, all capital repairs, replacements, and improvements for the stadium and stadium new text end 17.1 new text begin infrastructure. The authority shall maintain, or cause others to maintain, the stadium and new text end 17.2 new text begin stadium infrastructure in a safe, clean, attractive, and first-class manner so as to cause new text end 17.3 new text begin them to remain in a condition comparable to that of other comparable NFL facilities of new text end 17.4 new text begin similar design and age. The authority shall make, or cause others to make, all necessary new text end 17.5 new text begin or appropriate repairs, renewals, and replacements, whether structural or nonstructural, new text end 17.6 new text begin interior or exterior, ordinary or extraordinary, foreseen or unforeseen, in a prompt and new text end 17.7 new text begin timely manner. In addition, the authority, with approval of the NFL team, may enter into new text end 17.8 new text begin an agreement with a program manager to perform some or all of the responsibilities of the new text end 17.9 new text begin authority in this subdivision and to assume and accept financial liability for the cost of new text end 17.10 new text begin performing the responsibilities. new text end 17.11 new text begin (b) The NFL team must contribute $1,500,000 each year, beginning in 2016 or as new text end 17.12 new text begin otherwise determined for the term of the lease or use agreement to the operating reserve new text end 17.13 new text begin fund, increased by a three percent annual inflation rate. new text end 17.14 new text begin (c) The state shall contribute $1,500,000 each year, beginning in 2016 or as otherwise new text end 17.15 new text begin determined for the term of the lease to the operating reserve fund. The contributions of the new text end 17.16 new text begin state are subject to increase by an annual adjustment factor. The contribution under this new text end 17.17 new text begin paragraph shall be assumed by the team from 2016 through 2020, and repaid to the team new text end 17.18 new text begin by the state using funds in accordance with section 297A.994, subdivision 4, clause (4). new text end 17.19 new text begin (d) The authority with input from the NFL team shall develop short-term and new text end 17.20 new text begin long-term capital funding plans and shall use those plans to guide the future capital needs new text end 17.21 new text begin of the stadium and stadium infrastructure. The authority shall make the final determination new text end 17.22 new text begin with respect to funding capital needs. Any capital improvement proposed by the NFL new text end 17.23 new text begin team intended primarily to provide revenue enhancements to the NFL team shall be paid new text end 17.24 new text begin for by the NFL team, unless otherwise agreed to with the authority. new text end 17.25     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 17.26 new text begin of the NFL team under subdivision 2, the NFL team shall pay all NFL game day, NFL new text end 17.27 new text begin team-owned major league soccer, as provided in section 473J.15, subdivision 15, and new text end 17.28 new text begin other NFL team-sponsored event expenses within the stadium and stadium plaza areas. new text end 17.29     new text begin Subd. 6. new text end new text begin Cooperation with financing. new text end new text begin The authority will cooperate with the new text end 17.30 new text begin NFL team to facilitate the financing of the NFL team's contribution. Such agreement to new text end 17.31 new text begin cooperate shall not require the authority to incur any additional costs or provide conduit new text end 17.32 new text begin financing. The lease, license, and other transaction documents shall include provisions new text end 17.33 new text begin customarily required by lenders in stadium financings. new text end 17.34    Sec. 15. new text begin [473J.15] CRITERIA AND CONDITIONS. new text end 18.1     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 18.2 new text begin into related contracts, the authority must follow and enforce the criteria and conditions in new text end 18.3 new text begin this section, provided that a determination by the authority that those criteria or conditions new text end 18.4 new text begin have been met under any agreement or otherwise shall be conclusive. new text end 18.5     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 18.6 new text begin team/private contribution, including stadium builder license proceeds, for stadium costs new text end 18.7 new text begin must be made in cash in the amount of at least $427,000,000. new text end 18.8 new text begin (b) Prior to the initial deposit of funds under this section, the team must provide new text end 18.9 new text begin security or other credit worthiness in the amount of $50,000,000, subject to the satisfaction new text end 18.10 new text begin of the authority. Prior to the first issuance of bonds under section 16A.965, the first portion new text end 18.11 new text begin of the NFL team/private contribution in the amount of $50,000,000 must be deposited as new text end 18.12 new text begin costs are incurred to the construction fund to pay for the initial stadium costs. new text end 18.13 new text begin (c) After the first $50,000,000 of stadium costs have been paid from the initial new text end 18.14 new text begin NFL team/private contribution, state funds shall be deposited as costs are incurred to the new text end 18.15 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 18.16 new text begin funds being deposited in the construction fund, the NFL team must provide security or a new text end 18.17 new text begin financing commitment reasonably satisfactory to the authority for the balance of the new text end 18.18 new text begin required NFL team/private contribution and for payment of cost overruns if the NFL new text end 18.19 new text begin team assumes responsibility for stadium construction under section 473J.11. Thereafter, new text end 18.20 new text begin budgeted project costs shall be borne by the authority and the NFL team/private new text end 18.21 new text begin contributions in amounts proportionate to their remaining funding commitments. new text end 18.22 new text begin (d) In the event the project terminates before the initial $100,000,000 in contributions new text end 18.23 new text begin are expended by the parties under this subdivision, the parties shall be reimbursed in the new text end 18.24 new text begin amounts they have deposited to the construction fund proportionate to project funding new text end 18.25 new text begin percentages, in the amounts of 56 percent by the authority and 44 percent by the NFL new text end 18.26 new text begin team/private contributions. new text end 18.27     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 18.28 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 18.29 new text begin stadium. The NFL team must agree to play all preseason, regular season, and postseason new text end 18.30 new text begin home games at the stadium. Training facilities must remain in Minnesota during the term new text end 18.31 new text begin of the lease or use agreement. The lease or use agreement must be for a term of at least new text end 18.32 new text begin 30 years from the date of substantial completion of the stadium for professional football new text end 18.33 new text begin games. The lease or use agreement may provide options for the NFL team to extend the new text end 18.34 new text begin term for up to four additional periods of five years. The lease or use agreement must new text end 18.35 new text begin include terms for default, termination, and breach of the agreement. Recognizing that new text end 18.36 new text begin the presence of professional football provides to the state of Minnesota and its citizens new text end 19.1 new text begin highly valued, intangible benefits that are virtually impossible to quantify and, therefore, new text end 19.2 new text begin not recoverable in the event of the NFL team owner's breach of contract, the lease and new text end 19.3 new text begin use agreements must provide for specific performance and injunctive relief to enforce new text end 19.4 new text begin provisions relating to use of the stadium for professional football and must not include new text end 19.5 new text begin escape clauses or buyout provisions. The NFL team must not enter into or accept any new text end 19.6 new text begin agreement or requirement with or from any entity that is inconsistent with the NFL team's new text end 19.7 new text begin binding commitment to the 30-year term of the lease or use agreement or that would in new text end 19.8 new text begin any manner dilute, interfere with, or negate the provisions of the lease or use agreement, new text end 19.9 new text begin providing for specific performance or injunctive relief. The legislature conclusively new text end 19.10 new text begin determines, as a matter of public policy, that the lease or use agreement, and any grant new text end 19.11 new text begin agreement under this chapter that includes a specific performance clause: new text end 19.12 new text begin (1) explicitly authorizes specific performance as a remedy for breach; new text end 19.13 new text begin (2) is made for adequate consideration and upon terms which are otherwise fair new text end 19.14 new text begin and reasonable; new text end 19.15 new text begin (3) has not been included through sharp practice, misrepresentation, or mistake; new text end 19.16 new text begin (4) if specifically enforced, does not cause unreasonable or disproportionate hardship new text end 19.17 new text begin or loss to the NFL team or to third parties; and new text end 19.18 new text begin (5) involves performance in a manner and the rendering of services of a nature and new text end 19.19 new text begin under circumstances that the beneficiary cannot be adequately compensated in damages. new text end 19.20     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 19.21 new text begin shall include rent and other fees and expenses to be paid by the NFL team. The authority new text end 19.22 new text begin shall agree to provide in the lease or use agreement for the NFL team to receive all NFL new text end 19.23 new text begin and team event related revenues, including but not limited to, suite revenues, advertising, new text end 19.24 new text begin concessions, signage, broadcast and media, and club seat revenue. The agreement shall new text end 19.25 new text begin also provide that all naming rights to the stadium are retained by the NFL team, subject to new text end 19.26 new text begin the approval of the name or names by the authority consistent with those criteria set out new text end 19.27 new text begin in the lease or use agreement. The agreement shall provide for the authority to receive new text end 19.28 new text begin all general ticket revenues and other event revenues other than from NFL team games, new text end 19.29 new text begin NFL team-owned major league soccer games, and other NFL team events agreed to by new text end 19.30 new text begin the authority. The stadium authority, or any company managing the stadium facilities on new text end 19.31 new text begin behalf of the authority, shall provide a public notice and seek a formal solicitation for new text end 19.32 new text begin requests for proposals for any contracts for goods, services, sponsorships, or advertising new text end 19.33 new text begin or signage rights at the stadium in excess of $25,000 in accordance with the definitions new text end 19.34 new text begin and terms set forth in chapter 16C, with the stadium authority acting as the responsible new text end 19.35 new text begin authority for seeking any such formal solicitations and awarding any such contracts new text end 19.36 new text begin pursuant to such solicitations. new text end 20.1     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 20.2 new text begin completion, the NFL team must provide written notice to the authority not less than 180 new text end 20.3 new text begin days prior to any action, including any action imposed upon the NFL team by the NFL, new text end 20.4 new text begin which would result in a breach or default of provisions of the lease or use agreements new text end 20.5 new text begin required to be included under subdivision 3. If this notice provision is violated and the new text end 20.6 new text begin NFL team has already breached or been in default under the required provisions, the new text end 20.7 new text begin authority or the state of Minnesota may specifically enforce the lease or use agreement new text end 20.8 new text begin and Minnesota courts shall fashion equitable remedies so that the NFL team fulfills the new text end 20.9 new text begin conditions of the lease and use agreements. new text end 20.10     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 20.11 new text begin stadium construction begins that all public and private funding sources for construction, new text end 20.12 new text begin operating expenses, and capital improvements and repairs of the stadium are included in new text end 20.13 new text begin written agreements. The committed funds must be adequate to design, construct, furnish, new text end 20.14 new text begin and equip the stadium, and pay projected operating expenses and the costs of capital new text end 20.15 new text begin improvements and repairs during the term of the lease or use agreement with the NFL new text end 20.16 new text begin team. The NFL team must provide the authority access to NFL team financial or other new text end 20.17 new text begin information, which the authority deems necessary for such determination. Any financial new text end 20.18 new text begin information obtained by the authority under this subdivision is nonpublic data under new text end 20.19 new text begin section 13.02, subdivision 9. new text end 20.20     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 20.21 new text begin environmental requirements imposed by regulatory agencies for the stadium, site, and new text end 20.22 new text begin structure, except as provided by section 473J.09, subdivision 11, or by section 473J.17. new text end 20.23     new text begin Subd. 8. new text end new text begin Public share on sale of NFL team. new text end new text begin The lease or use agreement must new text end 20.24 new text begin provide that, if the NFL team is sold or an interest in the NFL team is sold after the new text end 20.25 new text begin effective date of this chapter, a portion of the sale price must be paid to the authority and new text end 20.26 new text begin deposited in a reserve fund for improvements to the stadium or expended as the authority new text end 20.27 new text begin may otherwise direct. The portion required to be so paid to the authority is 18 percent new text end 20.28 new text begin of the amount in excess of the purchase price of the NFL team by the selling owner or new text end 20.29 new text begin owners, declining to zero 15 years after commencement of stadium construction in new text end 20.30 new text begin increments of 1.2 percent each year. The agreement must provide exceptions for sales new text end 20.31 new text begin to members of the owners' family and entities and trusts beneficially owned by family new text end 20.32 new text begin members, sales to employees of equity interests aggregating up to ten percent, sales related new text end 20.33 new text begin to capital infusions not distributed to the owners, and sales amongst existing owners not new text end 20.34 new text begin exceeding 20 percent equity interest in the NFL team. new text end 20.35     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 20.36 new text begin provision for a material breach shall be agreed to between the authority and the NFL team. new text end 21.1 new text begin In the event there is a material breach by the NFL team under the lease or use agreement, new text end 21.2 new text begin the lease or use agreement must provide the authority access to audited financial statements new text end 21.3 new text begin of the NFL team and other financial information that the authority deems necessary to new text end 21.4 new text begin enforce the terms of any lease or use agreements. Any financial information obtained by new text end 21.5 new text begin the authority under this subdivision is nonpublic data under section 13.02, subdivision 9. new text end 21.6     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 21.7 new text begin that the NFL team and NFL will transfer to the state of Minnesota the Minnesota Vikings' new text end 21.8 new text begin heritage and records, including the name, logo, colors, history, playing records, trophies, new text end 21.9 new text begin and memorabilia in the event of relocation of the NFL team is in violation of the lease new text end 21.10 new text begin or use agreement. new text end 21.11     new text begin Subd. 11. new text end new text begin Stadium design. new text end new text begin (a) The authority and the NFL team will strive to build a new text end 21.12 new text begin stadium that is environmentally and energy efficient and will make an effort to build a new text end 21.13 new text begin stadium that is eligible to receive the Leadership in Energy and Environmental Design new text end 21.14 new text begin (LEED) certification for environmental design, and to the extent practicable, will strive to new text end 21.15 new text begin make the stadium design architecturally significant. new text end 21.16 new text begin (b) The stadium design must, to the extent feasible, follow sustainable building new text end 21.17 new text begin guidelines established under section 16B.325. new text end 21.18 new text begin (c) The authority and the team must ensure that the stadium be built with new text end 21.19 new text begin American-made steel that is made from Minnesota iron ore. new text end 21.20     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 21.21 new text begin any necessary approvals to the terms of the lease and use agreement and the design and new text end 21.22 new text begin construction plans for the stadium, including prior approval of the NFL. new text end 21.23     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 21.24 new text begin agreed-upon number of affordable tickets to the professional sporting events held in the new text end 21.25 new text begin stadium. new text end 21.26     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 21.27 new text begin exclusive right to sell stadium builder's licenses in the stadium. The authority will retain new text end 21.28 new text begin the NFL team to act as the authority's agent in marketing and selling such licenses. new text end 21.29     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 21.30 new text begin NFL team home game is played in the stadium, grant the NFL team the exclusive right to new text end 21.31 new text begin establish major league soccer at the stadium. The authority and the NFL team may enter new text end 21.32 new text begin into an agreement providing the terms and conditions of such an arrangement, provided: new text end 21.33 new text begin (1) if any of the NFL team owners whose family owns at least three percent of new text end 21.34 new text begin the NFL team purchases full or partial ownership in a major league soccer franchise, new text end 21.35 new text begin such franchise may play in the stadium under a use agreement with similar terms as are new text end 21.36 new text begin applicable to the NFL team at no additional rent, but including a provision of payment new text end 22.1 new text begin of game-day costs and reasonable marginal costs incurred by the authority as a result of new text end 22.2 new text begin the major league soccer team; and new text end 22.3 new text begin (2) capital improvements required by a major league soccer franchise must be new text end 22.4 new text begin financed by the owners of the major league soccer team, unless otherwise agreed to by new text end 22.5 new text begin the authority. new text end 22.6     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 22.7 new text begin which shall not be unreasonably withheld, any of the obligations by the NFL team may new text end 22.8 new text begin be performed by the NFL team, a related entity, or a third party, and the NFL team, any new text end 22.9 new text begin entity related to the NFL team or third party may receive any revenues to which the NFL new text end 22.10 new text begin team is entitled hereunder; provided, however, the NFL team shall remain liable if any new text end 22.11 new text begin obligations are assigned to a related entity or third party. new text end 22.12    Sec. 16. new text begin [473J.17] MUNICIPAL ACTIVITIES. new text end 22.13     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 22.14 new text begin legally permissible, acquire land, air rights, and other property interests within the new text end 22.15 new text begin development area for the stadium site and stadium infrastructure and convey it to the new text end 22.16 new text begin authority with or without consideration, prepare a site for development as a stadium, and new text end 22.17 new text begin acquire and construct any related stadium infrastructure. To the extent property parcels or new text end 22.18 new text begin interests acquired are more extensive than the stadium infrastructure requirements, the city new text end 22.19 new text begin may sell or otherwise dispose of the excess. new text end 22.20     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 22.21 new text begin the city has no interest in or claim to any assets or revenues of the authority. new text end 22.22     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 22.23 new text begin governmental unit for an environmental impact statement for the stadium prepared under new text end 22.24 new text begin section 116D.04, if an environmental impact statement is necessary. Notwithstanding new text end 22.25 new text begin section 116D.04, subdivision 2b, and implementing rules: (1) the environmental new text end 22.26 new text begin impact statement shall not be required to consider alternative stadium sites; and (2) the new text end 22.27 new text begin environmental impact statement must be determined to be adequate before commencing new text end 22.28 new text begin work on the foundation of the stadium, but the stadium and stadium infrastructure may new text end 22.29 new text begin otherwise be started and all preliminary and final government decisions and actions may new text end 22.30 new text begin be made and taken including, but not limited to, acquiring land; obtaining financing; new text end 22.31 new text begin granting permits or other land use approvals; entering into grant, lease, or use agreements; new text end 22.32 new text begin or preparing the site or related stadium infrastructure prior to a determination of the new text end 22.33 new text begin adequacy of the environmental impact statement. new text end 22.34     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 22.35 new text begin grants for other costs incidental and necessary to further the purposes of this chapter and new text end 23.1 new text begin may, by agreement, reimburse in whole or in part, any entity that has granted, loaned, or new text end 23.2 new text begin advanced funds to the city to further the purposes of this chapter. The city may reimburse new text end 23.3 new text begin the authority or a local governmental entity or make a grant to the authority or such a new text end 23.4 new text begin governmental unit or be reimbursed by the authority or local governmental entity for site new text end 23.5 new text begin acquisition, preparation of the site for stadium development, and stadium infrastructure. new text end 23.6     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 23.7 new text begin limited herein, the city may acquire and develop stadium infrastructure, enter into contracts new text end 23.8 new text begin with the authority and other governmental or nongovernmental entities, appropriate funds, new text end 23.9 new text begin and make employees, consultants, and other revenues available for those purposes. new text end 23.10     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 23.11 new text begin the objectives of this act within the required time frame, it is necessary to establish an new text end 23.12 new text begin alternative process for municipal land use and development review. It is hereby found new text end 23.13 new text begin and declared that the construction of a stadium within the development area is consistent new text end 23.14 new text begin with the adopted area plan, is the preferred stadium location, and is a permitted land use. new text end 23.15 new text begin This subdivision establishes a procedure for all land use and development reviews and new text end 23.16 new text begin approvals by the city of Minneapolis for the stadium and related stadium infrastructure new text end 23.17 new text begin and supersedes all land use and development rules and restrictions and procedures new text end 23.18 new text begin imposed by other law, charter, or ordinance, including without limitation section 15.99. new text end 23.19 new text begin No later than 30 days after timely compliance of the city as provided in article 4, section 4, new text end 23.20 new text begin of this act, the city of Minneapolis shall establish a stadium implementation committee new text end 23.21 new text begin to make recommendations on the design plans submitted for the stadium, and stadium new text end 23.22 new text begin infrastructure, and related improvements. The implementation committee must take new text end 23.23 new text begin action to issue its recommendations within the time frames established in the planning new text end 23.24 new text begin and construction timetable issued by the authority which shall provide for no less than 60 new text end 23.25 new text begin days for the committee's review. The recommendations of the implementation committee new text end 23.26 new text begin shall be forwarded to the city of Minneapolis Planning Commission for an advisory new text end 23.27 new text begin recommendation and then to the city council for final action in a single resolution, which new text end 23.28 new text begin final action must be taken within 45 days of the submission of the recommendations to the new text end 23.29 new text begin planning commission. The city council shall not impose any unreasonable conditions on new text end 23.30 new text begin the recommendations of the implementation committee, nor take any action or impose new text end 23.31 new text begin any conditions that will result in delay from the time frames established in the planning new text end 23.32 new text begin and construction timetable or in additional overall costs. Failure of the city council to act new text end 23.33 new text begin within the 45-day period shall be deemed to be approval. The authority may seek de novo new text end 23.34 new text begin review in the district court of any city council action. The district court or any appellate new text end 23.35 new text begin court shall expedite review to the maximum extent possible and timely issue relief, orders, new text end 23.36 new text begin or opinions as necessary to give effect to the provisions and objectives in this act. new text end 24.1    Sec. 17. new text begin [473J.19] PROPERTY TAX EXEMPTION; SPECIAL ASSESSMENTS. new text end 24.2 new text begin Any real or personal property acquired, owned, leased, controlled, used, or occupied new text end 24.3 new text begin by the authority for any of the purposes of this chapter, is acquired, owned, leased, new text end 24.4 new text begin controlled, used, and occupied for public, governmental, and municipal purposes. The new text end 24.5 new text begin stadium and stadium infrastructure are exempt from ad valorem taxation by the state new text end 24.6 new text begin or any political subdivision of the state provided that the properties are subject to new text end 24.7 new text begin special assessments levied by a political subdivision for a local improvement in amounts new text end 24.8 new text begin proportionate to and not exceeding the special benefit received by the properties from the new text end 24.9 new text begin improvement. No possible use of any of the properties in any manner different from their new text end 24.10 new text begin use under this chapter may be considered in determining the special benefit received by new text end 24.11 new text begin the properties. Notwithstanding section 272.01, subdivision 2, or 273.19, real or personal new text end 24.12 new text begin property which is subject to a lease or use agreement between the authority and another new text end 24.13 new text begin person for uses related to the purposes of this chapter, including the operation of the new text end 24.14 new text begin stadium and related parking facilities, is exempt from taxation regardless of the length of new text end 24.15 new text begin the lease or use agreement or the characteristics of the entity leasing or using the property. new text end 24.16 new text begin This section, insofar as it provides an exemption or special treatment, does not apply to new text end 24.17 new text begin any real property that is leased for residential, business, or commercial development or to new text end 24.18 new text begin a restaurant that is open for general business more than 200 days a year, or other purposes new text end 24.19 new text begin different from those contemplated in this chapter. new text end 24.20    Sec. 18. new text begin [473J.21] LIQUOR LICENSES. new text end 24.21 new text begin At the request of the authority, the city may issue intoxicating liquor licenses that are new text end 24.22 new text begin reasonably requested for the premises of the stadium site. These licenses are in addition to new text end 24.23 new text begin the number authorized by law. All provisions of chapter 340A not inconsistent with this new text end 24.24 new text begin section apply to the licenses authorized under this section. new text end 24.25    Sec. 19. new text begin [473J.23] LOCAL TAXES. new text end 24.26 new text begin No new or additional local sales or use tax shall be imposed on sales at the stadium new text end 24.27 new text begin site unless the tax is applicable throughout the taxing jurisdiction. Except for a tax new text end 24.28 new text begin imposed under article 7, no new or additional local tax shall be imposed on sales of tickets new text end 24.29 new text begin and admissions to NFL team, NFL team-owned major league soccer, or other team related new text end 24.30 new text begin events at the stadium, notwithstanding any law or ordinance, unless the tax is applicable new text end 24.31 new text begin throughout the taxing jurisdiction. The admissions and amusements tax currently imposed new text end 24.32 new text begin by the city of Minneapolis pursuant to Laws 1969, chapter 1092, may apply to admissions new text end 24.33 new text begin for football and NFL team related events, including NFL team-owned major league soccer, new text end 24.34 new text begin as provided in section 473J.15, subdivision 15, at the stadium. new text end 25.1    Sec. 20. new text begin [473J.25] METROPOLITAN SPORTS FACILITIES COMMISSION new text end 25.2 new text begin ASSETS; LIABILITIES TO AUTHORITY. new text end 25.3     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 25.4 new text begin shall pay the operating expenses of the authority including salaries, compensation, and new text end 25.5 new text begin other personnel, office, equipment, consultant and any other costs, until the commission is new text end 25.6 new text begin abolished pursuant to subdivision 3. new text end 25.7     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 25.8 new text begin Sports Facilities Commission shall pay its outstanding obligations, settle its accounts, and new text end 25.9 new text begin transfer its remaining assets, liabilities, and obligations to the authority, for its purposes. new text end 25.10     new text begin Subd. 3. new text end new text begin Metropolitan Sports Facilities Commission abolished; interim powers new text end 25.11 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 25.12 new text begin and obligations of the Metropolitan Sports Facilities Commission, in subdivision 2, the new text end 25.13 new text begin Metropolitan Sports Facilities Commission is abolished. When the remaining assets, new text end 25.14 new text begin liabilities, and obligations of the Metropolitan Sports Facilities Commission have been new text end 25.15 new text begin transferred to the authority and the commission has been abolished, the powers and duties new text end 25.16 new text begin of the commission under sections 473.551 to 473.599, and any other law shall devolve new text end 25.17 new text begin upon the authority, in addition to the powers and duties of the authority under chapter new text end 25.18 new text begin 473J, until the first NFL home game is played at the stadium. new text end 25.19     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 25.20 new text begin Metropolitan Sports Facilities Commission shall be transferred to the Minnesota Stadium new text end 25.21 new text begin Authority without loss of right or privilege. Nothing in this section shall be construed to new text end 25.22 new text begin give any such person the right or privilege to continue in the same level or classification new text end 25.23 new text begin of employment previously held. The Minnesota Stadium Authority may assign any such new text end 25.24 new text begin person to an employment level and classification which it deems appropriate and desirable new text end 25.25 new text begin in accordance with its personnel code. new text end 25.26    Sec. 21. new text begin EFFECTIVE DATE. new text end 25.27 new text begin Except as otherwise provided, this article is effective the day following final new text end 25.28 new text begin enactment. new text end 25.29ARTICLE 2 25.30STATE STADIUM FUNDING 25.31    Section 1. new text begin [16A.965] STADIUM APPROPRIATION BONDS. new text end 25.32     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 25.33 new text begin 473J apply to this section. new text end 26.1 new text begin (b) "Appropriation bond" means a bond, note, or other similar instrument of the state new text end 26.2 new text begin payable during a biennium from one or more of the following sources: new text end 26.3 new text begin (1) money appropriated by law from the general fund, including, without limitation, new text end 26.4 new text begin revenues deposited in the general fund as provided in articles 4 and 5, in any biennium for new text end 26.5 new text begin debt service due with respect to obligations described in subdivision 2, paragraph (b); new text end 26.6 new text begin (2) proceeds of the sale of obligations described in subdivision 2, paragraph (b); new text end 26.7 new text begin (3) payments received for that purpose under agreements and ancillary arrangements new text end 26.8 new text begin described in subdivision 2, paragraph (d); and new text end 26.9 new text begin (4) investment earnings on amounts in clauses (1) to (3). new text end 26.10 new text begin (c) "Debt service" means the amount payable in any biennium of principal, premium, new text end 26.11 new text begin if any, and interest on appropriation bonds. new text end 26.12     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 limitations new text end 26.13 new text begin of this subdivision, the commissioner may sell and issue appropriation bonds of the state new text end 26.14 new text begin under this section for public purposes as provided by law, including, in particular, the new text end 26.15 new text begin financing of all or a portion of the acquisition, construction, improving, and equipping new text end 26.16 new text begin of the stadium project of the Minnesota Stadium Authority as provided by chapter 473J. new text end 26.17 new text begin Proceeds of the appropriation bonds must be credited to a special appropriation stadium new text end 26.18 new text begin bond proceeds fund in the state treasury. Net income from investment of the proceeds, new text end 26.19 new text begin as estimated by the commissioner, must be credited to the special appropriation stadium new text end 26.20 new text begin bond proceeds fund. new text end 26.21 new text begin (b) Appropriation bonds may be sold and issued in amounts that, in the opinion of new text end 26.22 new text begin the commissioner, are necessary to provide sufficient funds, not to exceed $548,000,000 new text end 26.23 new text begin net of costs of issuance, deposits for debt service reserve funds, and costs of credit new text end 26.24 new text begin enhancement for achieving the purposes authorized as provided under paragraph (a), and new text end 26.25 new text begin pay debt service, pay costs of issuance, make deposits to reserve funds, pay the costs new text end 26.26 new text begin of credit enhancement, or make payments under other agreements entered into under new text end 26.27 new text begin paragraph (d); provided, however, that appropriation bonds issued and unpaid shall not new text end 26.28 new text begin exceed $650,000,000 in principal amount, excluding refunding bonds sold and issued new text end 26.29 new text begin under subdivision 4. new text end 26.30 new text begin (c) Appropriation bonds may be issued from time to time in one or more series on new text end 26.31 new text begin the terms and conditions the commissioner determines to be in the best interests of the new text end 26.32 new text begin state, but the term on any series of appropriation bonds may not exceed 30 years. The new text end 26.33 new text begin appropriation bonds of each issue and series thereof shall be dated and bear interest, new text end 26.34 new text begin and may be includable in or excludable from the gross income of the owners for federal new text end 26.35 new text begin income tax purposes. new text end 27.1 new text begin (d) At the time of, or in anticipation of, issuing the appropriation bonds, and at any new text end 27.2 new text begin time thereafter, so long as the appropriation bonds are outstanding, the commissioner may new text end 27.3 new text begin enter into agreements and ancillary arrangements relating to the appropriation bonds, new text end 27.4 new text begin including but not limited to trust indentures, grant agreements, lease or use agreements, new text end 27.5 new text begin operating agreements, management agreements, liquidity facilities, remarketing or new text end 27.6 new text begin dealer agreements, letter of credit agreements, insurance policies, guaranty agreements, new text end 27.7 new text begin reimbursement agreements, indexing agreements, or interest exchange agreements. Any new text end 27.8 new text begin payments made or received according to the agreement or ancillary arrangement shall be new text end 27.9 new text begin made from or deposited as provided in the agreement or ancillary arrangement. The new text end 27.10 new text begin determination of the commissioner included in an interest exchange agreement that the new text end 27.11 new text begin agreement relates to an appropriation bond shall be conclusive. new text end 27.12 new text begin (e) The commissioner may enter into written agreements or contracts relating to the new text end 27.13 new text begin continuing disclosure of information necessary to comply with, or facilitate the issuance new text end 27.14 new text begin of appropriation bonds in accordance with federal securities laws, rules, and regulations, new text end 27.15 new text begin including Securities and Exchange Commission rules and regulations in Code of Federal new text end 27.16 new text begin Regulations, title 17, section 240.15c 2-12. An agreement may be in the form of covenants new text end 27.17 new text begin with purchasers and holders of appropriation bonds set forth in the order or resolution new text end 27.18 new text begin authorizing the issuance of the appropriation bonds, or a separate document authorized new text end 27.19 new text begin by the order or resolution. new text end 27.20 new text begin (f) The appropriation bonds are not subject to chapter 16C. new text end 27.21     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 27.22 new text begin of bonds, notes, or other similar instruments, and in the manner provided in section new text end 27.23 new text begin 16A.672. In the event that any provision of section 16A.672 conflicts with this section, new text end 27.24 new text begin this section shall control. new text end 27.25 new text begin (b) Every appropriation bond shall include a conspicuous statement of the limitation new text end 27.26 new text begin established in subdivision 6. new text end 27.27 new text begin (c) Appropriation bonds may be sold at either public or private sale upon such terms new text end 27.28 new text begin as the commissioner shall determine are not inconsistent with this section and may be sold new text end 27.29 new text begin at any price or percentage of par value. Any bid received may be rejected. new text end 27.30 new text begin (d) Appropriation bonds must bear interest at a fixed or variable rate. new text end 27.31 new text begin (e) Notwithstanding any other law, appropriation bonds issued under this section new text end 27.32 new text begin shall be fully negotiable. new text end 27.33     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 27.34 new text begin appropriation bonds for the purpose of refunding any appropriation bonds then new text end 27.35 new text begin outstanding, including the payment of any redemption premiums on the bonds, any new text end 27.36 new text begin interest accrued or to accrue to the redemption date, and costs related to the issuance and new text end 28.1 new text begin sale of the refunding bonds. The proceeds of any refunding bonds may, in the discretion of new text end 28.2 new text begin the commissioner, be applied to the purchase or payment at maturity of the appropriation new text end 28.3 new text begin bonds to be refunded, to the redemption of the outstanding appropriation bonds on any new text end 28.4 new text begin redemption date, or to pay interest on the refunding bonds and may, pending application, new text end 28.5 new text begin be placed in escrow to be applied to the purchase, payment, retirement, or redemption. Any new text end 28.6 new text begin escrowed proceeds, pending such use, may be invested and reinvested in obligations that new text end 28.7 new text begin are authorized investments under section 11A.24. The income earned or realized on the new text end 28.8 new text begin investment may also be applied to the payment of the appropriation bonds to be refunded new text end 28.9 new text begin or interest or premiums on the refunded appropriation bonds, or to pay interest on the new text end 28.10 new text begin refunding bonds. After the terms of the escrow have been fully satisfied, any balance of the new text end 28.11 new text begin proceeds and any investment income may be returned to the general fund or, if applicable, new text end 28.12 new text begin the special appropriation stadium bond proceeds fund for use in any lawful manner. All new text end 28.13 new text begin refunding bonds issued under this subdivision must be prepared, executed, delivered, and new text end 28.14 new text begin secured by appropriations in the same manner as the appropriation bonds to be refunded. new text end 28.15     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 28.16 new text begin may legally invest any sinking funds, money, or other funds belonging to them or under new text end 28.17 new text begin their control in any appropriation bonds issued under this section: new text end 28.18 new text begin (1) the state, the investment board, public officers, municipal corporations, political new text end 28.19 new text begin subdivisions, and public bodies; new text end 28.20 new text begin (2) banks and bankers, savings and loan associations, credit unions, trust companies, new text end 28.21 new text begin savings banks and institutions, investment companies, insurance companies, insurance new text end 28.22 new text begin associations, and other persons carrying on a banking or insurance business; and new text end 28.23 new text begin (3) personal representatives, guardians, trustees, and other fiduciaries. new text end 28.24     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 28.25 new text begin The appropriation bonds are not public debt of the state, and the full faith, credit, and new text end 28.26 new text begin taxing powers of the state are not pledged to the payment of the appropriation bonds or to new text end 28.27 new text begin any payment that the state agrees to make under this section. Appropriation bonds shall new text end 28.28 new text begin not be obligations paid directly, in whole or in part, from a tax of statewide application new text end 28.29 new text begin on any class of property, income, transaction, or privilege. Appropriation bonds shall be new text end 28.30 new text begin payable in each fiscal year only from amounts that the legislature may appropriate for debt new text end 28.31 new text begin service for any fiscal year, provided that nothing in this section shall be construed to new text end 28.32 new text begin require the state to appropriate funds sufficient to make debt service payments with respect new text end 28.33 new text begin to the appropriation bonds in any fiscal year. Appropriation bonds shall be canceled and new text end 28.34 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 28.35 new text begin the legislature shall not have appropriated amounts sufficient for debt service, or (2) the new text end 28.36 new text begin date of final payment of the principal of and interest on the appropriation bonds. new text end 29.1     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 29.2 new text begin interest credited to the special appropriation stadium bond proceeds fund are appropriated new text end 29.3 new text begin to the commissioner for payment of capital expenses, debt service on outstanding new text end 29.4 new text begin indebtedness of the state, operating and capital reserves of the authority, and the funding new text end 29.5 new text begin of debt service reserves for the appropriation bonds, each as permitted by state and federal new text end 29.6 new text begin law, and nonsalary expenses incurred in conjunction with the sale of the appropriation new text end 29.7 new text begin bonds, and such proceeds may be granted, loaned, or otherwise provided to the authority new text end 29.8 new text begin for the public purpose provided by subdivision 2, paragraph (a). new text end 29.9     new text begin Subd. 8. new text end new text begin Commissioner; determination of available revenues. new text end new text begin (a) By March 15 new text end 29.10 new text begin of each fiscal year, the commissioner, in consultation with the commissioner of revenue, new text end 29.11 new text begin shall determine the estimated increase in revenues received from taxes imposed under new text end 29.12 new text begin chapter 297E over the estimated revenues under the February 2012 revenue forecast for new text end 29.13 new text begin that fiscal year. For fiscal years after fiscal year 2015, the commissioner shall use the new text end 29.14 new text begin February 2012 revenue forecast for fiscal year 2015 as the baseline. All calculations under new text end 29.15 new text begin this paragraph must be made net of estimated refunds of the taxes required to be paid. new text end 29.16 new text begin (b) Available revenues for purposes of subdivision 9, equal the amount determined new text end 29.17 new text begin under paragraph (a), less the following amounts for the fiscal year: new text end 29.18 new text begin (1) the appropriation to principal and interest on appropriation bonds under new text end 29.19 new text begin subdivision 9, paragraph (a); new text end 29.20 new text begin (2) the appropriations under article 5 for administration and any successor new text end 29.21 new text begin appropriation; new text end 29.22 new text begin (3) the reduction in revenues resulting from the sales tax exemptions under section new text end 29.23 new text begin 297A.71; new text end 29.24 new text begin (4) reimbursements authorized by section 473J.15, subdivision 2; and new text end 29.25 new text begin (5) payment of compulsive gambling appropriations under article 5 and any new text end 29.26 new text begin successor appropriation. new text end 29.27 new text begin (c) If the estimated increase in revenues under paragraph (a) for the fiscal year are new text end 29.28 new text begin less than or equal to $52,000,000, then available revenues, as determined under paragraph new text end 29.29 new text begin (b), are allocated: new text end 29.30 new text begin (1) 50 percent to be used for appropriations under subdivision 9, paragraph (a); and new text end 29.31 new text begin (2) 50 percent to be used for appropriations under subdivision 9, paragraph (b) new text end 29.32 new text begin (d) If the estimated increase in revenues under paragraph (a) for the fiscal year are new text end 29.33 new text begin greater than $52,000,000, the first $16,000,000 of any available revenues, as determined new text end 29.34 new text begin under paragraph (b), is allocated for payment of gambling tax rebates under section new text end 29.35 new text begin 297E.02, subdivision 12, and the remainder is allocated as provided under paragraph new text end 29.36 new text begin (c), clauses (1) and (2). new text end 30.1 new text begin (e) The provisions of this subdivision apply only after the issuance of appropriation new text end 30.2 new text begin bonds under subdivision 2. new text end 30.3     new text begin Subd. 9. new text end new text begin Appropriation for debt service and other purposes. new text end new text begin (a) The amount new text end 30.4 new text begin needed to pay principal and interest on appropriation bonds issued under this section is new text end 30.5 new text begin appropriated each year from the general fund to the commissioner, subject to repeal, new text end 30.6 new text begin unallotment under section 16A.152, or cancellation otherwise pursuant to subdivision 6, new text end 30.7 new text begin for deposit into the bond payment accounts established for such purpose in the special new text end 30.8 new text begin appropriation stadium bond proceeds fund. new text end 30.9 new text begin (b) To the extent the commissioner determines revenues are available under the new text end 30.10 new text begin provisions of subdivision 8, paragraph (b), for the fiscal year, the following amounts new text end 30.11 new text begin are appropriated from the general fund: new text end 30.12 new text begin (1) to replenish the amount on deposit in any debt service reserve account established new text end 30.13 new text begin with respect to the appropriation bonds to the debt service reserve requirement amount as new text end 30.14 new text begin determined by order of the commissioner; and new text end 30.15 new text begin (2) to the extent not required under clause (1), for deposit to any general reserve new text end 30.16 new text begin account established by order of the commissioner for application against any shortfall in new text end 30.17 new text begin the amounts deposited to the general fund pursuant to section 297A.994. new text end 30.18     new text begin Subd. 10. 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 30.19 new text begin by section 3.751, subdivision 1, shall be applicable to the appropriation bonds and any new text end 30.20 new text begin ancillary contracts to which the commissioner is a party. new text end 30.21     new text begin Subd. 11. 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 30.22 new text begin validated in the manner provided by this subdivision. If comparable appropriation bonds new text end 30.23 new text begin are judicially determined to be valid, nothing in this subdivision shall be construed new text end 30.24 new text begin to prevent the sale or delivery of any appropriation bonds or notes without entry of a new text end 30.25 new text begin judgment of validation by the Minnesota Supreme Court pursuant to this subdivision with new text end 30.26 new text begin respect to the appropriation bonds authorized under this section. new text end 30.27 new text begin (b) Any appropriation bonds issued under this section that are validated shall be new text end 30.28 new text begin validated in the manner provided by this subdivision. new text end 30.29 new text begin (c) The Minnesota Supreme Court shall have original jurisdiction to determine the new text end 30.30 new text begin validation of appropriation bonds and all matters connected therewith. new text end 30.31 new text begin (d) The commissioner may determine the commissioner's authority to issue new text end 30.32 new text begin appropriation bonds and the legality of all proceedings in connection with issuing bonds. new text end 30.33 new text begin For this purpose, a complaint shall be filed by the commissioner in the Minnesota Supreme new text end 30.34 new text begin Court against the state and the taxpayers and citizens. new text end 31.1 new text begin (e) As a condition precedent to filing of a complaint for the validation of new text end 31.2 new text begin appropriation bonds, the commissioner shall take action providing for the issuance of new text end 31.3 new text begin appropriation bonds in accordance with law. new text end 31.4 new text begin (f) The complaint shall set out the state's authority to issue appropriation bonds, the new text end 31.5 new text begin action or proceeding authorizing the issue and its adoption, all other essential proceedings new text end 31.6 new text begin had or taken in connection with issuing bonds, the amount of the appropriation bonds to new text end 31.7 new text begin be issued and the maximum interest they are to bear, and all other pertinent matters. new text end 31.8 new text begin (g) The Minnesota Supreme Court shall issue an order directed against the state and new text end 31.9 new text begin taxpayers, citizens, and others having or claiming any right, title, or interest affected by new text end 31.10 new text begin the issuance of appropriation bonds, or to be affected by the bonds, allowing all persons, new text end 31.11 new text begin in general terms and without naming them, and the state through its attorney general, to new text end 31.12 new text begin appear before the Minnesota Supreme Court at a designated time and place and show new text end 31.13 new text begin why the complaint should not be granted and the proceedings and appropriation bonds new text end 31.14 new text begin validated. A copy of the complaint and order shall be served on the attorney general at new text end 31.15 new text begin least 20 days before the time fixed for hearing. The attorney general shall examine the new text end 31.16 new text begin complaint, and, if it appears or there is reason to believe that it is defective, insufficient, or new text end 31.17 new text begin untrue, or if in the opinion of the attorney general the issuance of the appropriation bonds new text end 31.18 new text begin in question has not been duly authorized, defense shall be made by the attorney general as new text end 31.19 new text begin the attorney general deems appropriate. new text end 31.20 new text begin (h) Before the date set for hearing, as directed by the Minnesota Supreme Court, new text end 31.21 new text begin either the clerk of the Minnesota appellate courts or the commissioner shall publish a copy new text end 31.22 new text begin of the order in a legal newspaper of general circulation in Ramsey County and the state, at new text end 31.23 new text begin least once each week for two consecutive weeks, commencing with the first publication, new text end 31.24 new text begin which shall not be less than 20 days before the date set for hearing. By this publication, new text end 31.25 new text begin all taxpayers, citizens, and others having or claiming any right, title, or interest in the new text end 31.26 new text begin state, are made parties defendant to the action and the Minnesota Supreme Court has new text end 31.27 new text begin jurisdiction of them to the same extent as if named as defendants in the complaint and new text end 31.28 new text begin personally served with process. new text end 31.29 new text begin (i) Any taxpayer, citizen, or person interested may become a party to the action by new text end 31.30 new text begin moving against or pleading to the complaint at or before the time set for hearing. The new text end 31.31 new text begin Minnesota Supreme Court shall determine all questions of law and fact and make orders new text end 31.32 new text begin that will enable it to properly try and determine the action and render a final judgment new text end 31.33 new text begin within 30 days of the hearing with the least possible delay. new text end 31.34 new text begin (j) If the judgment validates appropriation bonds, the judgment is forever conclusive new text end 31.35 new text begin as to all matters adjudicated and as against all parties affected and all others having or new text end 31.36 new text begin claiming any right, title, or interest affected by the issuance of appropriation bonds, or to new text end 32.1 new text begin be affected in any way by issuing the bonds, and the validity of appropriation bonds or of new text end 32.2 new text begin any revenues pledged for the payment of the bonds, or of the proceedings authorizing the new text end 32.3 new text begin issuance of the bonds, including any remedies provided for their collection, shall never new text end 32.4 new text begin be called in question in any court by any person or party. new text end 32.5 new text begin (k)(1) Appropriation bonds, when validated under this section, shall have stamped new text end 32.6 new text begin or written on the bonds, by the proper officers of the state issuing them, a statement new text end 32.7 new text begin in substantially the following form: "This appropriation bond is one of a series of new text end 32.8 new text begin appropriation bonds which were validated by judgment of the Supreme Court of the State new text end 32.9 new text begin of Minnesota, rendered on ……. , ....... (year)". new text end 32.10 new text begin (2) A certified copy of the judgment or decree shall be received as evidence in any new text end 32.11 new text begin court in this state. new text end 32.12 new text begin (l) The costs shall be paid by the state, except when a taxpayer, citizen, or other new text end 32.13 new text begin person contests the action or intervenes, the court may tax the whole or any part of the new text end 32.14 new text begin costs against the person that is equitable. new text end 32.15 new text begin (m) A justice of the Minnesota Supreme Court is not disqualified in any validation new text end 32.16 new text begin action because the justice is a landowner or taxpayer of the state. new text end 32.17    Sec. 2. new text begin APPROPRIATION. new text end 32.18 new text begin If state appropriation bonds have not been issued under Minnesota Statutes, section new text end 32.19 new text begin 16A.965, amounts not to exceed the increased revenues estimated by the commissioner new text end 32.20 new text begin of management and budget under Minnesota Statutes, section 16A.965, subdivision 8, new text end 32.21 new text begin paragraph (a), are appropriated to the commissioner of management and budget to make new text end 32.22 new text begin grants to the Minnesota Stadium Authority for stadium costs as defined under Minnesota new text end 32.23 new text begin Statutes, section 473J.03, subdivision 8. new text end 32.24ARTICLE 3 32.25CONFORMING CHANGES 32.26    Section 1. Minnesota Statutes 2010, section 3.971, subdivision 6, is amended to read: 32.27    Subd. 6. Financial audits. The legislative auditor shall audit the financial 32.28statements of the state of Minnesota required by section 16A.50 and, as resources permit, 32.29shall audit Minnesota State Colleges and Universities, the University of Minnesota, state 32.30agencies, departments, boards, commissions, courts, and other state organizations subject 32.31to audit by the legislative auditor, including the State Agricultural Society, Agricultural 32.32Utilization Research Institute, Enterprise Minnesota, Inc., Minnesota Historical 32.33Society, Labor Interpretive Center, Minnesota Partnership for Action Against Tobacco, 32.34Metropolitan Sports Facilities Commission, Metropolitan Airports Commission, and 33.1Metropolitan Mosquito Control District. Financial audits must be conducted according to 33.2generally accepted government auditing standards. The legislative auditor shall see that 33.3all provisions of law respecting the appropriate and economic use of public funds are 33.4complied with and may, as part of a financial audit or separately, investigate allegations 33.5of noncompliance. 33.6    Sec. 2. Minnesota Statutes 2010, section 13.55, subdivision 1, is amended to read: 33.7    Subdivision 1. Not public classification. The following data received, created, or 33.8maintained by or for publicly owned and operated convention facilities, new text begin or new text end civic center 33.9authorities, or the Metropolitan Sports Facilities Commission are classified as nonpublic 33.10data pursuant to section 13.02, subdivision 9; or private data on individuals pursuant 33.11to section 13.02, subdivision 12: 33.12(a) a letter or other documentation from any person who makes inquiry to or who is 33.13contacted by the facility regarding the availability of the facility for staging events; 33.14(b) identity of firms and corporations which contact the facility; 33.15(c) type of event which they wish to stage in the facility; 33.16(d) suggested terms of rentals; and 33.17(e) responses of authority staff to these inquiries. 33.18    Sec. 3. Minnesota Statutes 2011 Supplement, section 340A.404, subdivision 1, is 33.19amended to read: 33.20    Subdivision 1. Cities. (a) A city may issue an on-sale intoxicating liquor license to 33.21the following establishments located within its jurisdiction: 33.22(1) hotels; 33.23(2) restaurants; 33.24(3) bowling centers; 33.25(4) clubs or congressionally chartered veterans organizations with the approval of 33.26the commissioner, provided that the organization has been in existence for at least three 33.27years and liquor sales will only be to members and bona fide guests, except that a club 33.28may permit the general public to participate in a wine tasting conducted at the club under 33.29section 340A.419; new text begin and new text end 33.30(5) sports facilities located on land owned by the Metropolitan Sports Commission; 33.31and 33.32(6) exclusive liquor stores. 33.33(b) A city may issue an on-sale intoxicating liquor license, an on-sale wine license, 33.34or an on-sale malt liquor license to a theater within the city, notwithstanding any law, local 34.1ordinance, or charter provision. A license issued under this paragraph authorizes sales on 34.2all days of the week to persons attending events at the theater. 34.3(c) A city may issue an on-sale intoxicating liquor license, an on-sale wine license, 34.4or an on-sale malt liquor license to a convention center within the city, notwithstanding 34.5any law, local ordinance, or charter provision. A license issued under this paragraph 34.6authorizes sales on all days of the week to persons attending events at the convention 34.7center. This paragraph does not apply to convention centers located in the seven-county 34.8metropolitan area. 34.9(d) A city may issue an on-sale wine license and an on-sale malt liquor license to 34.10a person who is the owner of a summer collegiate league baseball team, or to a person 34.11holding a concessions or management contract with the owner, for beverage sales at a 34.12ballpark or stadium located within the city for the purposes of summer collegiate league 34.13baseball games at the ballpark or stadium, notwithstanding any law, local ordinance, or 34.14charter provision. A license issued under this paragraph authorizes sales on all days of the 34.15week to persons attending baseball games at the ballpark or stadium. 34.16    Sec. 4. Minnesota Statutes 2010, section 352.01, subdivision 2a, is amended to read: 34.17    Subd. 2a. Included employees. (a) "State employee" includes: 34.18    (1) employees of the Minnesota Historical Society; 34.19    (2) employees of the State Horticultural Society; 34.20    (3) employees of the Minnesota Crop Improvement Association; 34.21    (4) employees of the adjutant general whose salaries are paid from federal funds and 34.22who are not covered by any federal civilian employees retirement system; 34.23    (5) employees of the Minnesota State Colleges and Universities who are employed 34.24under the university or college activities program; 34.25    (6) currently contributing employees covered by the system who are temporarily 34.26employed by the legislature during a legislative session or any currently contributing 34.27employee employed for any special service as defined in subdivision 2b, clause (8); 34.28    (7) employees of the legislature who are appointed without a limit on the duration 34.29of their employment and persons employed or designated by the legislature or by a 34.30legislative committee or commission or other competent authority to conduct a special 34.31inquiry, investigation, examination, or installation; 34.32    (8) trainees who are employed on a full-time established training program 34.33performing the duties of the classified position for which they will be eligible to receive 34.34immediate appointment at the completion of the training period; 34.35    (9) employees of the Minnesota Safety Council; 35.1    (10) any employees who are on authorized leave of absence from the Transit 35.2Operating Division of the former Metropolitan Transit Commission and who are employed 35.3by the labor organization which is the exclusive bargaining agent representing employees 35.4of the Transit Operating Division; 35.5    (11) employees of the Metropolitan Council, Metropolitan Parks and Open Space 35.6Commission, Metropolitan Sports Facilities Commission, or Metropolitan Mosquito 35.7Control Commission unless excluded under subdivision 2b or are covered by another 35.8public pension fund or plan under section 473.415, subdivision 3; 35.9    (12) judges of the Tax Court; 35.10    (13) personnel who were employed on June 30, 1992, by the University of 35.11Minnesota in the management, operation, or maintenance of its heating plant facilities, 35.12whose employment transfers to an employer assuming operation of the heating plant 35.13facilities, so long as the person is employed at the University of Minnesota heating plant 35.14by that employer or by its successor organization; 35.15    (14) personnel who are employed as seasonal employees in the classified or 35.16unclassified service; 35.17    (15) persons who are employed by the Department of Commerce as a peace officer 35.18in the Insurance Fraud Prevention Division under section 45.0135 who have attained the 35.19mandatory retirement age specified in section 43A.34, subdivision 4; 35.20    (16) employees of the University of Minnesota unless excluded under subdivision 35.212b, clause (3); 35.22    (17) employees of the Middle Management Association whose employment began 35.23after July 1, 2007, and to whom section 352.029 does not apply; and 35.24    (18) employees of the Minnesota Government Engineers Council to whom section 35.25352.029 does not apply. 35.26    (b) Employees specified in paragraph (a), clause (13), are included employees under 35.27paragraph (a) if employer and employee contributions are made in a timely manner in the 35.28amounts required by section 352.04. Employee contributions must be deducted from 35.29salary. Employer contributions are the sole obligation of the employer assuming operation 35.30of the University of Minnesota heating plant facilities or any successor organizations to 35.31that employer. 35.32    Sec. 5. Minnesota Statutes 2010, section 473.121, subdivision 5a, is amended to read: 35.33    Subd. 5a. Metropolitan agency. "Metropolitan agency" means the Metropolitan 35.34Parks and Open Space Commission, new text begin and the new text end Metropolitan Airports Commission, and 35.35Metropolitan Sports Facilities Commission. 36.1    Sec. 6. Minnesota Statutes 2010, section 473.164, is amended to read: 36.2473.164 SPORTS, AIRPORT COMMISSIONS TO PAY COUNCIL COSTS. 36.3    Subdivision 1. Annually reimburse. The Metropolitan Sports Facilities 36.4Commission and the Metropolitan Airports Commission shall annually reimburse the 36.5council for costs incurred by the council in the discharge of its responsibilities relating to 36.6the commission. The costs may be charged against any revenue sources of the commission 36.7as determined by the commission. 36.8    Subd. 2. Estimates, budget, transfer. On or before May 1 of each year, the council 36.9shall transmit to each new text begin the new text end commission an estimate of the costs which the council will 36.10incur in the discharge of its responsibilities related to the commission in the next budget 36.11year including, without limitation, costs in connection with the preparation, review, 36.12implementation and defense of plans, programs and budgets of the commission. Each new text begin The new text end 36.13commission shall include the estimates in its budget for the next budget year and may 36.14transmit its comments concerning the estimated amount to the council during the budget 36.15review process. Prior to December 15 of each year, the amount budgeted by each new text begin the new text end 36.16commission for the next budget year may be changed following approval by the council. 36.17During each budget year, the commission shall transfer budgeted funds to the council in 36.18advance when requested by the council. 36.19    Subd. 3. Final statement. At the conclusion of each budget year, the council, in 36.20cooperation with each new text begin the new text end commission, shall adopt a final statement of costs incurred by the 36.21council for each new text begin the new text end commission. Where costs incurred in the budget year have exceeded 36.22the amount budgeted, each new text begin the new text end commission shall transfer to the council the additional 36.23moneys needed to pay the amount of the costs in excess of the amount budgeted, and shall 36.24include a sum in its next budget. Any excess of budgeted costs over actual costs may be 36.25retained by the council and applied to the payment of budgeted costs in the next year. 36.26    Sec. 7. Minnesota Statutes 2010, section 473.565, subdivision 1, is amended to read: 36.27    Subdivision 1. In MSRS; exceptions. All employees of the new text begin former new text end commission 36.28shall be members of the Minnesota State Retirement System with respect to service 36.29rendered on or after May 17, 1977, except as provided in this section. 36.30    Sec. 8. new text begin REPEALER. new text end 36.31 new text begin Minnesota Statutes 2010, sections 473.551; 473.552; 473.553, subdivisions 1, 2, 3, new text end 36.32 new text begin 4, 5, 6, 7, 8, 9, 10, 11, 12, and 13; 473.556, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, new text end 36.33 new text begin 13, 14, 16, and 17; 473.561; 473.564, subdivisions 2 and 3; 473.572; 473.581; 473.592, new text end 36.34 new text begin subdivision 1; 473.595; 473.598; 473.599; and 473.76, new text end new text begin are repealed. new text end 37.1    Sec. 9. new text begin EFFECTIVE DATE. new text end 37.2 new text begin This article is effective June 30, 2016. new text end 37.3ARTICLE 4 37.4MINNEAPOLIS CONVENTION CENTER 37.5    Section 1. new text begin [297A.994] CITY OF MINNEAPOLIS SALES TAX; ALLOCATION new text end 37.6 new text begin OF REVENUES. new text end 37.7     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 37.8 new text begin subdivision 11, the provisions of this section govern the remittance of the proceeds of new text end 37.9 new text begin taxes imposed by the city of Minneapolis under the special law. new text end 37.10     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 37.11 new text begin apply. new text end 37.12 new text begin (b) "City" means the city of Minneapolis. new text end 37.13 new text begin (c) "Special law" means Laws 1986, chapter 396, sections 4 and 5, as amended. new text end 37.14 new text begin (d) "Tax" means the sales taxes imposed by the city under the special law. new text end 37.15 new text begin (e) The terms defined under section 473J.03 apply for purposes of this section. new text end 37.16     new text begin Subd. 3. new text end new text begin General allocation of revenues. new text end new text begin The commissioner shall apply the new text end 37.17 new text begin revenues from the taxes as follows: new text end 37.18 new text begin (1) the commissioner must deduct the costs of collecting and administering the taxes, new text end 37.19 new text begin according to the applicable law and agreements between the commissioner and the city. new text end 37.20 new text begin For revenues from the general sales tax, the commissioner must deduct a proportionate new text end 37.21 new text begin share of the cost of collection, as described in section 297A.99, subdivision 11; new text end 37.22 new text begin (2) after deducting the costs in clause (1), the commissioner must deduct refunds of new text end 37.23 new text begin any of these taxes due to taxpayers, if any; new text end 37.24 new text begin (3) after making the deductions provided in clause (2), notwithstanding the new text end 37.25 new text begin provisions of any agreement between the commissioner and the city providing for new text end 37.26 new text begin collection and remittance of these taxes, the commissioner must deposit to the general new text end 37.27 new text begin fund the amounts specified in subdivision 4; and new text end 37.28 new text begin (4) after depositing to the general fund under clause (3) as specified in subdivision new text end 37.29 new text begin 4, the commissioner must remit the remainder to the city for the uses provided in the new text end 37.30 new text begin special law. new text end 37.31     new text begin Subd. 4. new text end new text begin General fund allocations. new text end new text begin (a) The commissioner must deposit to the new text end 37.32 new text begin general fund the following amounts, as required by subdivision 3, clause (3): new text end 37.33 new text begin (1) for state bond debt service support beginning in calendar year 2021, and for each new text end 37.34 new text begin calendar year thereafter through calendar year 2046, proportionate amounts periodically new text end 37.35 new text begin so that not later than December 31, 2046, an aggregate annual amount equal to a present new text end 38.1 new text begin value of $150,000,000 has been deposited in the general fund. To determine aggregate new text end 38.2 new text begin present value, the commissioner must consult with the commissioner of management and new text end 38.3 new text begin budget regarding the present value dates, discount rate or rates, and schedules of annual new text end 38.4 new text begin amounts. The present value date or dates must be based on the date or dates bonds are new text end 38.5 new text begin sold under section 16A.965, or the date or dates other state funds, if any, are deposited new text end 38.6 new text begin into the construction fund. The discount rate or rates must be based on the true interest new text end 38.7 new text begin cost of the bonds issued under section 16A.965, or an equivalent 30-year bond index, as new text end 38.8 new text begin determined by the commissioner of management and budget. The schedule of annual new text end 38.9 new text begin amounts must be certified to the commissioner by the commissioner of management and new text end 38.10 new text begin budget and the finance officer of the city; new text end 38.11 new text begin (2) for the capital improvement reserve appropriation to stadium authority beginning new text end 38.12 new text begin in calendar year 2021, and for each calendar year thereafter through calendar year 2046, new text end 38.13 new text begin so that not later than January 1, 2022, and as of January 1 of each following year, an new text end 38.14 new text begin aggregate annual amount equal to the amount paid by the state for calendar year 2021, new text end 38.15 new text begin under section 473J.13, subdivision 4, increased each year by an annual adjustment factor; new text end 38.16 new text begin (3) for the operating expense appropriation to stadium authority beginning in new text end 38.17 new text begin calendar year 2021, and for each calendar year thereafter through calendar year 2046, new text end 38.18 new text begin so that not later than January 1, 2022, and as of January 1 of each following year, an new text end 38.19 new text begin aggregate annual amount equal to the amount paid by the state for calendar year 2021 new text end 38.20 new text begin under section 473J.13, subdivision 2, increased each year by an annual adjustment factor; new text end 38.21 new text begin (4) for recapture of NFL team advances for capital improvements and operating new text end 38.22 new text begin expenses for calendar years 2016 through 2020 beginning in calendar year 2021, and new text end 38.23 new text begin for each calendar year thereafter until all amounts under this clause have been paid, new text end 38.24 new text begin proportionate amounts periodically until an aggregate amount equal to the present value of new text end 38.25 new text begin all amounts paid by the NFL team have been deposited in the general fund. To determine new text end 38.26 new text begin the present value of the amounts paid by the NFL team to the authority and the present new text end 38.27 new text begin value of amounts deposited to the general fund under this clause, the commissioner shall new text end 38.28 new text begin consult with the commissioner of management and budget and the NFL team regarding the new text end 38.29 new text begin present value dates, discount rate or rates, and schedule of annual amounts. The present new text end 38.30 new text begin value dates must be based on the dates NFL team funds are paid to the authority, or the new text end 38.31 new text begin dates the commissioner of revenue deposits taxes for purposes of this clause to the general new text end 38.32 new text begin fund. The discount rates must be based on the reasonably equivalent cost of NFL team new text end 38.33 new text begin funds as determined by the commissioner of management and budget after consulting with new text end 38.34 new text begin the NFL team. The schedule of annual amounts must be revised to reflect amounts paid new text end 38.35 new text begin under section 473J.09, subdivision 13, and taxes deposited to the general fund from time new text end 38.36 new text begin to time under this clause, and the schedule and revised schedules must be certified to the new text end 39.1 new text begin commissioner by the commissioner of management and budget and the finance officer new text end 39.2 new text begin of the city, and are transferred as accrued from the general fund to the NFL team, for new text end 39.3 new text begin repayment of advances made by the NFL team to the city of Minneapolis; and new text end 39.4 new text begin (5) to capture increases in taxes imposed under the special law, for the benefit new text end 39.5 new text begin of the stadium authority, beginning in calendar year 2013 and for each calendar year new text end 39.6 new text begin thereafter through 2046, there shall be deposited to the general fund by February 15 of new text end 39.7 new text begin each following year, amounts calculated by the commissioner under this clause. For new text end 39.8 new text begin each year, the commissioner shall determine the excess, if any, of the taxes received new text end 39.9 new text begin by the commissioner over the benchmark scheduled amounts of the taxes, as described new text end 39.10 new text begin in this section. The benchmark scheduled amounts for each year must be based on the new text end 39.11 new text begin actual amount of the taxes for calendar year 2011 inflated for each subsequent year at an new text end 39.12 new text begin annual rate of two percent, according to a schedule certified to the commissioner by the new text end 39.13 new text begin commissioner of management and budget and the finance officer of the city. The amounts new text end 39.14 new text begin to be deposited to the general fund by the commissioner for each year equal: new text end 39.15 new text begin (i) zero for the amount of the taxes for the year up to a scheduled benchmark of new text end 39.16 new text begin $1,000,000, inflated at two percent per year, in excess of the taxes for calendar year 2011; new text end 39.17 new text begin (ii) 50 percent times the difference, if any, by which the amount of the taxes for new text end 39.18 new text begin the year exceeds the scheduled benchmark in item (i), as inflated, but not greater than a new text end 39.19 new text begin scheduled benchmark of $3,000,000, inflated at two percent per year, in excess of the new text end 39.20 new text begin taxes for calendar year 2011; and new text end 39.21 new text begin (iii) 25 percent times the difference, if any, by which the amount of the taxes for the new text end 39.22 new text begin year exceeds the scheduled benchmark of $3,000,000, inflated at two percent per year, in new text end 39.23 new text begin excess of the taxes for calendar year 2011. new text end 39.24 new text begin (b) The annual adjustment factor for purposes of this section and the special law new text end 39.25 new text begin for any year equals the increase, if any, in the amount of these taxes received by the new text end 39.26 new text begin commissioner in the preceding year over the amount received in the year prior to the new text end 39.27 new text begin preceding year, expressed as a percentage of the amount received in the year prior to the new text end 39.28 new text begin preceding year; provided, that the adjustment factor for any year must not be less than new text end 39.29 new text begin zero percent nor more than five percent. new text end 39.30    Sec. 2. Laws 1986, chapter 396, section 4, as amended by Laws 1987, chapter 55, 39.31sections 5 and 6, and Laws 2009, chapter 88, article 4, sections 11 and 12, is amended to 39.32read: 39.33    Sec. 4. SALES AND USE TAX. 39.34    Subdivision 1. Imposition. Notwithstanding Minnesota Statutes, section 477A.016, 39.35or any other contrary provision of law, ordinance, or city charter, upon approval by 40.1the city's board of estimate and taxation by a vote of at least five members, the city of 40.2Minneapolis may by ordinance impose an additional sales tax of up to one-half of one 40.3percent on sales taxable pursuant to Minnesota Statutes, chapter 297A that occur within 40.4the city, and may also by ordinance impose an additional compensating use tax of up to 40.5one-half of one percent on uses of property within the city, the sale of which would be 40.6subject to the additional sales tax but for the fact such property was sold outside the city. 40.7The tax may not be imposed on gross receipts from sales of intoxicating liquor that are 40.8exempt from taxation under sections to or other new text begin any new text end provision of 40.9chapter 297A exempting sales of intoxicating liquor and use from taxation, including 40.10amendments adopted after enactment of this act. 40.11    For purposes of this subdivision, sales that occur within the city shall not include (a) 40.12the sale of tangible personal property (i) which, without intermediate use, is shipped or 40.13transported outside Minneapolis by the purchaser and thereafter used in a trade or business 40.14or is stored, processed, fabricated or manufactured into, attached to or incorporated into 40.15other tangible personal property transported or shipped outside Minneapolis and thereafter 40.16used in a trade or business outside Minneapolis, and which is not thereafter returned to a 40.17point within Minneapolis, except in the course of interstate or intrastate commerce (storage 40.18shall not constitute intermediate use); or (ii) which the seller delivers to a common carrier 40.19for delivery outside Minneapolis, places in the United States mail or parcel post directed 40.20to the purchaser outside Minneapolis, or delivers to the purchaser outside Minneapolis by 40.21means of the seller's own delivery vehicles, and which is not thereafter returned to a point 40.22within Minneapolis, except in the course of interstate or intrastate commerce; or (b) sales 40.23which would be described in clause (e) or (u) of Minnesota Statutes, section 297A.25, 40.24subdivision 1 new text begin 297A.68, subdivision 11 or 16, new text end if the word "Minneapolis" were substituted 40.25for the words "Minnesota" or "state of Minnesota" in such clauses new text begin subdivisions new text end . A tax 40.26may be imposed under this section only if the taxes imposed under section 5 are imposed 40.27at the maximum rate allowed under that section. The tax authorized by this section shall 40.28be imposed, new text begin until December 31, 2046. The tax may be further imposed through December new text end 40.29 new text begin 31, 2050, by order of the commissioner of management and budget, as specified under new text end 40.30 new text begin article 7, section 1. The tax may be imposed new text end and may be adjusted periodically by the city 40.31council new text begin in conformity with Minnesota Statutes, section 297A.99, subdivision 12, new text end such that 40.32the rate imposed, rounded to the next highest one-tenth of one percent, does not exceed 40.33the rate estimated to be required to produce new text begin produces new text end revenue sufficient to finance the 40.34costs new text begin purposes new text end described in subdivision new text begin subdivisions new text end 3 new text begin and 4, but in no case may the rate new text end 40.35 new text begin exceed one-half of one percent new text end . 41.1    Subd. 2. Enforcement; collection. (a) Except as provided in paragraph (b), 41.2these taxes shall be subject to the same interest penalties and other rules imposed 41.3under Minnesota Statutes, chapter 297A. The commissioner of revenue may enter into 41.4appropriate agreements with the city to provide for collection of these taxes by the state 41.5on behalf of the city. The commissioner may charge the city a reasonable fee for its 41.6collection from the proceeds of any taxes new text begin , as provided in Minnesota Statutes, section new text end 41.7 new text begin 297A.99, subdivision 9 new text end . 41.8    (b) A taxpayer located outside of the city of Minneapolis who collects use tax under 41.9this section in an amount that does not exceed $10 in a reporting period is not required to 41.10remit that tax until the amount of use tax collected is $10. 41.11    Subd. 3. Use of property. Revenues received from the tax may only be used: 41.12    (1) to pay costs of collection; 41.13    (2) new text begin (1) new text end to pay or secure the payment of any principal of, premium or interest on 41.14bonds issued in accordance with this act; 41.15    (3) new text begin (2) new text end to pay costs to acquire, design, equip, construct, improve, maintain, operate, 41.16administer, or promote the convention center or related facilities, new text begin and other capital projects new text end 41.17 new text begin or economic developments under subdivision 4, new text end including financing costs related to them; 41.18    (4) new text begin (3) new text end to pay reasonable and appropriate costs determined by the city to replace 41.19housing and the ice arena removed from the site; 41.20    (5) new text begin (4) new text end to maintain reserves for the foregoing purposes deemed reasonable and 41.21appropriate by the city; and 41.22(6) new text begin (5) new text end to fund projects new text begin and for other purposes new text end under subdivision 4. 41.23    Money for replacement housing shall be made available by the city only for new 41.24construction, conversion of nonresidential buildings, and for rehabilitation of vacant 41.25residential structures, only if all of the units in the newly constructed building, converted 41.26nonresidential building, or rehabilitated residential structure are to be used for replacement 41.27housing. 41.28    Subd. 4. Minneapolis downtown and neighborhood projects. (a) For revenues 41.29collected in calendar years 2009 and 2010, to the extent that revenues from the tax 41.30authorized in subdivision 1 exceeds the amount needed to fund the purposes in subdivision 41.313, the city may use the excess revenue to fund any city services. The total amount used in 41.32both years for this purpose may not exceed the total amount of aid and credit reductions 41.33under Minnesota Statutes, sections 273.1384 and 477A.011 to 477A.014 in calendar years 41.342008, 2009, and 2010 due to a governor's unallotment or due to statutory reductions. 41.35(b) Beginning with revenues collected in calendar year 2011, to the extent that 41.36revenues 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 42.1the amount needed to fund the purposes in subdivision 3, the city may use the excess 42.2revenue in any year to fund capital projects to further residential, cultural, commercial, 42.3and economic development in both downtown Minneapolis and the Minneapolis 42.4neighborhoods new text begin , to fund other city expenditures in support of the capital projects, or new text end 42.5 new text begin for other economic development, provided the city may direct excess revenue first to new text end 42.6 new text begin convention center debt, operations, capital improvements, and marketing. The city may new text end 42.7 new text begin issue bonds to fund any such projects or improvements using these taxes or any other new text end 42.8 new text begin available city resources to finance or secure the bonds new text end . 42.9    Sec. 3. Laws 1986, chapter 396, section 5, as amended by Laws 2001, First Special 42.10Session chapter 5, article 12, section 87, is amended to read: 42.11    Sec. 5. LIQUOR, LODGING, AND RESTAURANT TAXES. 42.12    The city may, by resolution, levy in addition to taxes authorized by other law: 42.13    (1) a sales tax of not more than three percent on the gross receipts on retail on-sales 42.14of intoxicating liquor and fermented malt beverages described in section 42.15occurring in the new text begin when sold at licensed on-sale liquor establishments located within the new text end 42.16downtown taxing area, provided that this tax may not be imposed if sales of intoxicating 42.17liquor and fermented malt beverages are exempt from taxation under chapter 297A; 42.18    (2) a sales tax of not more than three percent on the gross receipts from the furnishing 42.19for consideration of lodging described in section new text begin for a period of less than 30 days new text end 42.20 new text begin at a hotel, motel, rooming house, tourist court, or trailer camp located within the city new text end by a 42.21hotel or motel which has more than 50 rooms available for lodging; the tax imposed under 42.22this clause shall be at a rate that, when added to the sum of the rate of the sales tax imposed 42.23under Minnesota Statutes, chapter 297A, the rate of the sales tax imposed under section 4, 42.24and the rate of any other taxes on lodging in the city of Minneapolis, equals 13 percent; and 42.25    (3) a sales tax of not more than three percent on the gross receipts on all sales of food 42.26primarily for consumption on or off the premises by restaurants and places of refreshment 42.27as defined by resolution of the city that occur within the downtown taxing area. 42.28 new text begin The taxes authorized by this section shall be imposed until January 1, 2047. The taxes new text end 42.29 new text begin may be further imposed through December 31, 2050, by order of the commissioner of new text end 42.30 new text begin management and budget, under the authority granted under article 7, section 1. The taxes new text end 42.31 new text begin shall be imposed and may be adjusted periodically by the city council such that the rates new text end 42.32 new text begin imposed, produce revenue sufficient, together with the tax imposed under section 4, to new text end 42.33 new text begin finance the purposes described in section 4, subdivisions 3 and 4. new text end These taxes shall be 42.34applied new text begin , first, as provided in Minnesota Statutes, section 297A.994, subdivision 3, clauses new text end 42.35 new text begin (1) to (3), and then, new text end solely to pay costs of collection and to pay or new text begin , new text end secure new text begin , maintain, and new text end 43.1 new text begin fund new text end the payment of any principal of, premium new text begin on, new text end and interest on any bonds or any 43.2costs referred to new text begin other purposes new text end in section 4, subdivision 3 new text begin or 4 new text end . The commissioner of 43.3revenue may enter into appropriate agreements with the city to provide for the collection 43.4of these taxes by the state on behalf of the city. The commissioner may charge the city 43.5a reasonable fee for its collection from the proceeds of any taxes. These taxes shall be 43.6subject to the same interest penalties and enforcement provisions as the taxes imposed 43.7under section new text begin Minnesota Statutes, chapter 297A new text end . 43.8    Sec. 4. new text begin EFFECTIVE DATE; LOCAL APPROVAL. new text end 43.9 new text begin This article is effective the day after the governing body of the city of Minneapolis new text end 43.10 new text begin and its chief clerical officer comply with Minnesota Statutes, section 645.021, subdivisions new text end 43.11 new text begin 2 and 3. Notwithstanding any law to the contrary, the city of Minneapolis and its chief new text end 43.12 new text begin clerical officer have 30 calendar days following final enactment of this act, to comply with new text end 43.13 new text begin Minnesota Statutes, section 645.021, subdivisions 2 and 3. new text end 43.14    Sec. 5. new text begin SEVERABILITY; SAVINGS. new text end 43.15 new text begin If any part of this article is found to be invalid because it is in conflict with a new text end 43.16 new text begin provision of the Minnesota Constitution or for any other reason, all other provisions of new text end 43.17 new text begin this article shall remain valid and any rights, remedies, and privileges that have been new text end 43.18 new text begin otherwise accrued by this article, shall remain in effect and may be proceeded with and new text end 43.19 new text begin concluded under the provisions of this article. new text end 43.20    Sec. 6. new text begin LOCAL SALES TAX REQUIREMENTS NOT TO APPLY. new text end 43.21 new text begin The taxes authorized under Laws 1986, chapter 396, sections 4 and 5, as amended, new text end 43.22 new text begin are exempt from the requirements of Minnesota Statutes, section 297A.99, subdivisions new text end 43.23 new text begin 2 and 3. new text end 43.24ARTICLE 5 43.25LAWFUL GAMBLING 43.26    Section 1. Minnesota Statutes 2010, section 297E.01, subdivision 7, is amended to read: 43.27    Subd. 7. Gambling product. "Gambling product" means bingo hard cards, bingo 43.28paper sheets, or linked bingo paper sheets new text begin , or electronic linked bingo games new text end ; pull-tabs; 43.29 new text begin electronic pull-tab games; new text end tipboards; paddle tickets and paddle ticket cards; raffle tickets; 43.30or any other ticket, card, board, placard, device, or token that represents a chance, for 43.31which consideration is paid, to win a prize. 44.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2012. new text end 44.2    Sec. 2. Minnesota Statutes 2010, section 297E.01, subdivision 8, is amended to read: 44.3    Subd. 8. Gross receipts. "Gross receipts" means all receipts derived from lawful 44.4gambling activity including, but not limited to, the following items: 44.5(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 44.6 new text begin electronic linked bingo games new text end before reduction for prizes, expenses, shortages, free plays, 44.7or any other charges or offsets; 44.8(2) the ideal gross of pull-tab new text begin , electronic pull-tab games, new text end and tipboard deals or games 44.9less the value of unsold and defective tickets and before reduction for prizes, expenses, 44.10shortages, free plays, or any other charges or offsets; 44.11(3) gross sales of raffle tickets and paddle tickets before reduction for prizes, 44.12expenses, shortages, free plays, or any other charges or offsets; 44.13(4) admission, commission, cover, or other charges imposed on participants in 44.14lawful gambling activity as a condition for or cost of participation; and 44.15(5) interest, dividends, annuities, profit from transactions, or other income derived 44.16from the accumulation or use of gambling proceeds. 44.17Gross receipts does not include proceeds from rental under section 349.18, 44.18subdivision 3 . 44.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2012. new text end 44.20    Sec. 3. Minnesota Statutes 2010, section 297E.01, subdivision 9, is amended to read: 44.21    Subd. 9. Ideal gross. "Ideal gross" means the total amount of receipts that would be 44.22received if every individual ticket in the pull-tab new text begin , electronic pull-tab games new text end or tipboard 44.23deal new text begin , paddle wheel game, and raffle ticket new text end was sold at its face value. In the calculation 44.24of ideal gross and prizes, a free play ticket new text begin pull-tab or electronic pull-tab new text end shall be valued 44.25at face value. new text begin Ideal gross also means the total amount of receipts that would be received new text end 44.26 new text begin if every bingo paper sheet, linked bingo paper sheet, and electronic linked bingo games new text end 44.27 new text begin were sold at face value. new text end 44.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2012. new text end 44.29    Sec. 4. Minnesota Statutes 2010, section 297E.02, subdivision 1, is amended to read: 44.30    Subdivision 1. Imposition. A tax is imposed on all lawful gambling other than (1) 44.31 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 44.32 new text begin linked bingo; and (4) new text end items listed in section 297E.01, subdivision 8, clauses (4) and (5), at 45.1the rate of 8.5 percent on the gross receipts as defined in section 297E.01, subdivision 8, 45.2less prizes actually paid. The tax imposed by this subdivision is in lieu of the tax imposed 45.3by section 297A.62 and all local taxes and license fees except a fee authorized under 45.4section 349.16, subdivision 8, or a tax authorized under subdivision 5. 45.5The tax imposed under this subdivision is payable by the organization or party 45.6conducting, directly or indirectly, the gambling. 45.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for games reported as played after new text end 45.8 new text begin June 30, 2012. new text end 45.9    Sec. 5. Minnesota Statutes 2010, section 297E.02, subdivision 3, is amended to read: 45.10    Subd. 3. Collection; disposition. new text begin (a) new text end Taxes imposed by this section other than in 45.11subdivision 4 are due and payable to the commissioner when the gambling tax return 45.12is required to be filed. Taxes imposed by subdivision 4 are due and payable to the 45.13commissioner on or before the last business day of the month following the month in 45.14which the taxable sale was made. new text begin Distributors must file their monthly sales figures with new text end 45.15 new text begin the commissioner on a form prescribed by the commissioner. new text end Returns covering the taxes 45.16imposed under this section must be filed with the commissioner on or before the 20th day 45.17of the month following the close of the previous calendar month. The commissioner 45.18may require that the returns be filed via magnetic media or electronic data transfer. The 45.19proceeds, along with the revenue received from all license fees and other fees under 45.20sections 349.11 to 349.191, 349.211, and 349.213, must be paid to the commissioner of 45.21management and budget for deposit in the general fund. 45.22 new text begin (b) The sales tax imposed by chapter 297A on the sale of pull-tabs and tipboards by new text end 45.23 new text begin the distributor is imposed on the retail sales price. The retail sale of pull-tabs or tipboards new text end 45.24 new text begin by the organization is exempt from taxes imposed by chapter 297A and is exempt from all new text end 45.25 new text begin local taxes and license fees except a fee authorized under section 349.16, subdivision 8. new text end 45.26 new text begin (c) One-half of one percent of the revenue deposited in the general fund under new text end 45.27 new text begin paragraph (a), is appropriated to the commissioner of human services for the compulsive new text end 45.28 new text begin gambling treatment program established under section 245.98. One-half of one percent new text end 45.29 new text begin of the revenue deposited in the general fund under paragraph (a), is appropriated to new text end 45.30 new text begin the commissioner of human services for a grant to the state affiliate recognized by new text end 45.31 new text begin the National Council on Problem Gambling to increase public awareness of problem new text end 45.32 new text begin gambling, education and training for individuals and organizations providing effective new text end 45.33 new text begin treatment services to problem gamblers and their families, and research relating to problem new text end 45.34 new text begin gambling. Money appropriated by this paragraph must supplement and must not replace new text end 45.35 new text begin existing state funding for these programs. 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. 6. Minnesota Statutes 2010, section 297E.02, subdivision 6, is amended to read: 46.3    Subd. 6. Combined new text begin net new text end receipts tax. In addition to the taxes imposed under 46.4subdivisions 1 and 4, a tax is imposed on the combined receipts of the organization. As 46.5used in this section, "combined new text begin net new text end receipts" is the sum of the organization's gross receipts 46.6from lawful gambling less gross receipts directly derived from the conduct of new text begin paper new text end bingo, 46.7raffles, and paddle wheels, as defined in section 297E.01, subdivision 8, new text begin and less the net new text end 46.8 new text begin prizes actually paid, other than prizes actually paid for paper bingo, raffles, and paddle new text end 46.9 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 46.10tax computed according to the following schedule: 46.11 46.12 46.13 If the combined new text begin net new text end receipts for the fiscal year are: The tax is: 46.14 Not over $500,000 new text begin $87,500 new text end zero new text begin 6.89 percent new text end 46.15 46.16 46.17 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 $6,029 plus 13.78 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 46.18 46.19 46.20 46.21 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 $10,852 new text end plus 3.4 new text begin 20.67 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 46.22 46.23 46.24 Over $900,000 new text begin $157,500 new text end $10,200 new text begin $18,086 new text end plus 5.1 new text begin 27.56 new text end percent of the amount over $900,000 new text begin $157,500 new text end 46.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2012. new text end 46.26    Sec. 7. Minnesota Statutes 2010, section 297E.02, is amended by adding a subdivision 46.27to read: 46.28     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 46.29 new text begin pull-tab game, an electronic pull-tab game, a tipboard deal, paddletickets, an electronic new text end 46.30 new text begin linked bingo game, bingo paper sheets, or linked bingo paper sheets, the distributor must new text end 46.31 new text begin report the sheets or games to the commissioner as lost and remit a tax of six percent new text end 46.32 new text begin on the ideal gross of the sheets or games. new text end 46.33 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2012. new text end 46.34    Sec. 8. Minnesota Statutes 2010, section 297E.02, subdivision 7, is amended to read: 46.35    Subd. 7. Untaxed gambling product. (a) In addition to penalties or criminal 46.36sanctions imposed by this chapter, a person, organization, or business entity possessing or 47.1selling a pull-tab new text begin , electronic pull-tab game new text end or tipboard upon which the tax imposed by 47.2subdivision 4 new text begin this chapter new text end has not been paid is liable for a tax of six percent of the ideal 47.3gross of each pull-tab new text begin , electronic pull-tab game, new text end or tipboard. The tax on a partial deal 47.4must be assessed as if it were a full deal. 47.5(b) In addition to penalties and criminal sanctions imposed by this chapter, a person 47.6not licensed by the board who conducts bingo, new text begin linked bingo, electronic linked bingo, new text end 47.7raffles, or paddle wheel games is liable for a tax of six percent of the gross receipts 47.8from that activity. 47.9(c) The tax must be assessed by the commissioner. An assessment must be 47.10considered a jeopardy assessment or jeopardy collection as provided in section 270C.36. 47.11The commissioner shall assess the tax based on personal knowledge or information 47.12available to the commissioner. The commissioner shall mail to the taxpayer at the 47.13taxpayer's last known address, or serve in person, a written notice of the amount of tax, 47.14demand its immediate payment, and, if payment is not immediately made, collect the tax 47.15by any method described in chapter 270C, except that the commissioner need not await the 47.16expiration of the times specified in chapter 270C. The tax assessed by the commissioner 47.17is presumed to be valid and correctly determined and assessed. The burden is upon the 47.18taxpayer to show its incorrectness or invalidity. The tax imposed under this subdivision 47.19does not apply to gambling that is exempt from taxation under subdivision 2. 47.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2012. new text end 47.21    Sec. 9. Minnesota Statutes 2010, section 297E.02, subdivision 10, is amended to read: 47.22    Subd. 10. Refunds; appropriation. A person who has, under this chapter, paid 47.23to the commissioner an amount of tax for a period in excess of the amount legally due 47.24for that period, may file with the commissioner a claim for a refund of the excess. The 47.25amount necessary to pay the refunds under this subdivision and subdivision 4, paragraph 47.26(d), is appropriated from the general fund to the commissioner. 47.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2012. new text end 47.28    Sec. 10. Minnesota Statutes 2010, section 297E.02, subdivision 11, is amended to read: 47.29    Subd. 11. Unplayed or Defective pull-tabs or tipboards new text begin gambling products new text end . If a 47.30deal of pull-tabs or tipboards registered with the board or bar coded in accordance with this 47.31chapter and chapter 349 and upon which the tax imposed by subdivision 4 has been paid is 47.32returned unplayed to the distributor, the commissioner shall allow a refund of the tax paid. 48.1If a defective deal registered with the board or bar coded in accordance with this 48.2chapter and chapter 349 and upon which the taxes have been paid is returned to the 48.3manufacturer, the distributor shall submit to the commissioner of revenue certification 48.4from the manufacturer that the deal was returned and in what respect it was defective. 48.5The certification must be on a form prescribed by the commissioner and must contain 48.6additional information the commissioner requires. 48.7The commissioner may require that no refund under this subdivision be made 48.8unless 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 48.9 new text begin paper bingo sheets, and linked bingo paper sheets be new text end set aside for inspection by the 48.10commissioner's employee. 48.11Reductions in previously paid taxes authorized by this subdivision must be made 48.12when and in the manner prescribed by the commissioner. 48.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for games sold by a licensed new text end 48.14 new text begin distributor after June 30, 2012. new text end 48.15    Sec. 11. Minnesota Statutes 2010, section 297E.13, subdivision 5, is amended to read: 48.16    Subd. 5. Untaxed gambling equipment. It is a gross misdemeanor for a person to 48.17possess gambling equipment for resale in this state that has not been stamped or bar-coded 48.18in accordance with this chapter and chapter 349 and upon which the taxes imposed by 48.19chapter 297A or section 297E.02, subdivision 4, have not been paid. The director of 48.20alcohol and gambling enforcement or the commissioner or the designated inspectors 48.21and employees of the director or commissioner may seize in the name of the state of 48.22Minnesota any unregistered or untaxed gambling equipment. 48.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for actions occurring after June new text end 48.24 new text begin 30, 2012. new text end 48.25    Sec. 12. Minnesota Statutes 2010, section 349.12, subdivision 3b, is amended to read: 48.26    Subd. 3b. Bar operation. "Bar operation" means a method of selling and redeeming 48.27 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 48.28which is licensed for the on-sale of alcoholic beverages where such sales and redemptions 48.29are made by an employee of the lessor from a common area where food and beverages 48.30are also sold. 48.31    Sec. 13. Minnesota Statutes 2010, section 349.12, subdivision 3c, is amended to read: 49.1    Subd. 3c. Bar bingo. "Bar bingo" is a bingo occasion conducted at a permitted 49.2premises in an area where intoxicating liquor or 3.2 percent malt beverages are sold and 49.3where the licensed organization conducts another form of lawful gambling. new text begin Bar bingo new text end 49.4 new text begin does not include bingo games linked to other permitted premises. new text end 49.5    Sec. 14. Minnesota Statutes 2010, section 349.12, subdivision 5, is amended to read: 49.6    Subd. 5. Bingo occasion. "Bingo occasion" means a single gathering or session at 49.7which a series of one or more successive bingo games is played. There is no limit on the 49.8number of games conducted during a bingo occasion but new text begin . new text end A bingo occasion must not last 49.9longer than eight consecutive hours. new text begin , except that linked bingo games played on electronic new text end 49.10 new text begin bingo devices may be played during regular business hours of the permitted premises, new text end 49.11 new text begin and all play during this period is considered a bingo occasion for reporting purposes. For new text end 49.12 new text begin permitted premises where the primary business is bingo, regular business hours shall be new text end 49.13 new text begin defined as the hours between 8:00 a.m. and 2:00 a.m. new text end 49.14    Sec. 15. Minnesota Statutes 2010, section 349.12, subdivision 6a, is amended to read: 49.15    Subd. 6a. Booth operation. "Booth operation" means a method of selling and 49.16redeeming new text begin disposable new text end gambling equipment by an employee of a licensed organization in 49.17a premises the organization leases or owns where such sales and redemptions are made 49.18within a separate enclosure that is distinct from areas where food and beverages are sold. 49.19    Sec. 16. Minnesota Statutes 2010, section 349.12, subdivision 12a, is amended to read: 49.20    Subd. 12a. Electronic bingo device. "Electronic bingo device" means an new text begin a new text end 49.21 new text begin handheld and portable new text end electronic device new text begin that: new text end 49.22 new text begin (a) is new text end used by a bingo player to new text begin : new text end 49.23 new text begin (1) new text end monitor bingo paper sheets or a facsimile of a bingo paper sheet when purchased 49.24 new text begin and played new text end at the time and place of an organization's bingo occasion and which (1) 49.25provides a means for bingo players to new text begin , or to play an electronic bingo game that is linked new text end 49.26 new text begin with other permitted premises; new text end 49.27 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 49.28 new text begin to compare new text end the numbers entered by the player to the bingo faces previously stored in 49.29the memory of the device; and 49.30(3) identifies new text begin identify new text end a winning bingo pattern. new text begin or game requirement; and new text end 49.31 new text begin (4) play against other bingo players; new text end 49.32 new text begin (b) limits the play of bingo faces to 36 faces per game; new text end 50.1 new text begin (c) requires coded entry to activate play but does not allow the use of a coin, new text end 50.2 new text begin currency, or tokens to be inserted to activate play; new text end 50.3 new text begin (d) may only be used for play against other bingo players in a bingo game; new text end 50.4 new text begin (e) has no additional function as an amusement or gambling device other than as an new text end 50.5 new text begin electronic pull-tab game defined under section 349.12, subdivision 12c; new text end 50.6 new text begin (f) has the capability to ensure adequate levels of security internal controls; new text end 50.7 new text begin (g) has the capability to permit the board to electronically monitor the operation of new text end 50.8 new text begin the device and the internal accounting systems; and new text end 50.9 new text begin (h) has the capability to allow use by a player who is visually impaired. new text end 50.10Electronic bingo device does not mean any device into which coin, currency, or tokens are 50.11inserted to activate play. 50.12    Sec. 17. Minnesota Statutes 2010, section 349.12, is amended by adding a subdivision 50.13to read: 50.14     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 50.15 new text begin handheld and portable electronic device that: new text end 50.16 new text begin (a) is used to play one or more electronic pull-tab games; new text end 50.17 new text begin (b) requires coded entry to activate play but does not allow the use of coin, currency, new text end 50.18 new text begin or tokens to be inserted to activate play; new text end 50.19 new text begin (c) requires that a player must activate or open each electronic pull-tab ticket and new text end 50.20 new text begin each individual line, row, or column of each electronic pull-tab ticket; new text end 50.21 new text begin (d) maintains information pertaining to accumulated win credits that may be applied new text end 50.22 new text begin to games in play or redeemed upon termination of play; new text end 50.23 new text begin (e) has no spinning symbols or other representations that mimic a video slot machine; new text end 50.24 new text begin (f) has no additional function as a gambling device other than as an electronic linked new text end 50.25 new text begin bingo game played on a device defined under section 349.12, subdivision 12a; new text end 50.26 new text begin (g) may incorporate an amusement game feature as part of the pull-tab game but new text end 50.27 new text begin may not require additional consideration for that feature or award any prize, or other new text end 50.28 new text begin benefit for that feature; new text end 50.29 new text begin (h) may have auditory or visual enhancements to promote or provide information new text end 50.30 new text begin about the game being played, provided the component does not affect the outcome of new text end 50.31 new text begin a game or display the results of a game; new text end 50.32 new text begin (i) maintains, on nonresettable meters, a printable, permanent record of all new text end 50.33 new text begin transactions involving each device electronic pull-tab games played on the device; new text end 50.34 new text begin (j) is not a pull-tab dispensing device as defined under subdivision 32a; and new text end 50.35 new text begin (k) has the capability to allow use by a player who is visually impaired. new text end 51.1    Sec. 18. Minnesota Statutes 2010, section 349.12, is amended by adding a subdivision 51.2to read: 51.3     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 51.4 new text begin game containing: new text end 51.5 new text begin (a) facsimiles of pull-tab tickets that are played on an electronic pull-tab device; new text end 51.6 new text begin (b) a predetermined, finite number of winning and losing tickets, not to exceed new text end 51.7 new text begin 7,500 tickets; new text end 51.8 new text begin (c) the same price for each ticket in the game; new text end 51.9 new text begin (d) a price paid by the player of not less than 25 cents per ticket; new text end 51.10 new text begin (e) tickets that are in conformance with applicable board rules for pull-tabs; new text end 51.11 new text begin (f) winning tickets that comply with prize limits under section 349.211; new text end 51.12 new text begin (g) a unique serial number that may not be regenerated; new text end 51.13 new text begin (h) an electronic flare that displays the game name, form number, predetermined, new text end 51.14 new text begin finite number of tickets in the game, and prize tier; and new text end 51.15 new text begin (i) no spinning symbols or other representations that mimic a video slot machine. 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. 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 51.19 new text begin means the equipment leased from a licensed distributor and used by a licensed organization new text end 51.20 new text begin to conduct, manage, and record electronic pull-tab games, and to report and transmit the new text end 51.21 new text begin game results as prescribed by the board and the Department of Revenue. The system must new text end 51.22 new text begin provide security and access levels sufficient so that internal control objectives are met as new text end 51.23 new text begin prescribed by the board. The system must contain a point of sale station. new text end 51.24    Sec. 20. Minnesota Statutes 2010, section 349.12, subdivision 18, is amended to read: 51.25    Subd. 18. Gambling equipment. "Gambling equipment" means: new text begin gambling new text end 51.26 new text begin equipment that is either disposable or permanent gambling equipment. new text end 51.27 new text begin (a) Disposable gambling equipment includes the following: new text end 51.28 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 51.29selecting bingo numbers, electronic bingo devices, new text begin ; new text end 51.30 new text begin (2) paper and electronic new text end pull-tabs, new text begin ; new text end 51.31 new text begin (3) new text end jar tickets, paddle wheels, paddle wheel tables, new text begin ; new text end 51.32 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 51.33 new text begin (5) new text end tipboards, new text begin and new text end tipboard tickets, new text begin ; and new text end 52.1 new text begin (6) new text end promotional tickets that mimic a pull-tab or tipboard, pull-tab dispensing devices, 52.2and programmable electronic devices that have no effect on the outcome of a game and 52.3are used to provide a visual or auditory enhancement of a game. 52.4 new text begin (b) Permanent gambling equipment includes the following: new text end 52.5 new text begin (1) devices for selecting bingo numbers; new text end 52.6 new text begin (2) electronic bingo devices; new text end 52.7 new text begin (3) electronic pull-tab devices; new text end 52.8 new text begin (4) pull-tab dispensing devices; new text end 52.9 new text begin (5) programmable electronic devices that have no effect on the outcome of a game new text end 52.10 new text begin and are used to provide a visual or auditory enhancement of a game; new text end 52.11 new text begin (6) paddle wheels; and new text end 52.12 new text begin (7) paddle wheel tables. new text end 52.13    Sec. 21. Minnesota Statutes 2010, section 349.12, subdivision 25, is amended to read: 52.14    Subd. 25. Lawful purpose. (a) "Lawful purpose" means one or more of the 52.15following: 52.16    (1) any expenditure by or contribution to a 501(c)(3) or festival organization, as 52.17defined in subdivision 15a, provided that the organization and expenditure or contribution 52.18are in conformity with standards prescribed by the board under section 349.154, which 52.19standards must apply to both types of organizations in the same manner and to the same 52.20extent; 52.21    (2) a contribution to or expenditure for goods and services for an individual or 52.22family suffering from poverty, homelessness, or disability, which is used to relieve the 52.23effects of that suffering; 52.24    (3) a contribution to a program recognized by the Minnesota Department of Human 52.25Services for the education, prevention, or treatment of problem gambling; 52.26    (4) a contribution to or expenditure on a public or private nonprofit educational 52.27institution registered with or accredited by this state or any other state; 52.28    (5) a contribution to an individual, public or private nonprofit educational institution 52.29registered with or accredited by this state or any other state, or to a scholarship fund of a 52.30nonprofit organization whose primary mission is to award scholarships, for defraying the 52.31cost of education to individuals where the funds are awarded through an open and fair 52.32selection process; 52.33    (6) activities by an organization or a government entity which recognize military 52.34service to the United States, the state of Minnesota, or a community, subject to rules 52.35of the board, provided that the rules must not include mileage reimbursements in the 53.1computation of the per diem reimbursement limit and must impose no aggregate annual 53.2limit on the amount of reasonable and necessary expenditures made to support: 53.3    (i) members of a military marching or color guard unit for activities conducted 53.4within the state; 53.5    (ii) members of an organization solely for services performed by the members at 53.6funeral services; 53.7    (iii) members of military marching, color guard, or honor guard units may be 53.8reimbursed for participating in color guard, honor guard, or marching unit events within 53.9the state or states contiguous to Minnesota at a per participant rate of up to $35 per diem; or 53.10    (iv) active military personnel and their immediate family members in need of 53.11support services; 53.12    (7) recreational, community, and athletic facilities and activities intended primarily 53.13for persons under age 21, provided that such facilities and activities do not discriminate on 53.14the basis of gender and the organization complies with section 349.154, subdivision 3a; 53.15    (8) payment of local taxes authorized under this chapter, taxes imposed by the 53.16United States on receipts from lawful gambling, the taxes imposed by section 297E.02, 53.17subdivisions 1, 4, 5, and 6, and the tax imposed on unrelated business income by section 53.18290.05, subdivision 3 ; 53.19    (9) payment of real estate taxes and assessments on permitted gambling premises 53.20owned by the licensed organization paying the taxes, or wholly leased by a licensed 53.21veterans organization under a national charter recognized under section 501(c)(19) of the 53.22Internal Revenue Code; 53.23    (10) a contribution to the United States, this state or any of its political subdivisions, 53.24or any agency or instrumentality thereof other than a direct contribution to a law 53.25enforcement or prosecutorial agency; 53.26    (11) a contribution to or expenditure by a nonprofit organization which is a church 53.27or body of communicants gathered in common membership for mutual support and 53.28edification in piety, worship, or religious observances; 53.29    (12) an expenditure for citizen monitoring of surface water quality by individuals 53.30or nongovernmental organizations that is consistent with section 115.06, subdivision 4, 53.31and Minnesota Pollution Control Agency guidance on monitoring procedures, quality 53.32assurance protocols, and data management, provided that the resulting data is submitted 53.33to the Minnesota Pollution Control Agency for review and inclusion in the state water 53.34quality database; 53.35    (13) a contribution to or expenditure on projects or activities approved by the 53.36commissioner of natural resources for: 54.1    (i) wildlife management projects that benefit the public at large; 54.2    (ii) grant-in-aid trail maintenance and grooming established under sections 84.83 54.3and 84.927, and other trails open to public use, including purchase or lease of equipment 54.4for this purpose; and 54.5    (iii) supplies and materials for safety training and educational programs coordinated 54.6by the Department of Natural Resources, including the Enforcement Division; 54.7    (14) conducting nutritional programs, food shelves, and congregate dining programs 54.8primarily for persons who are age 62 or older or disabled; 54.9    (15) a contribution to a community arts organization, or an expenditure to sponsor 54.10arts programs in the community, including but not limited to visual, literary, performing, 54.11or musical arts; 54.12    (16) an expenditure by a licensed fraternal organization or a licensed veterans 54.13organization for payment of water, fuel for heating, electricity, and sewer costs for: 54.14    (i) up to 100 percent for a building wholly owned or wholly leased by and used as 54.15the primary headquarters of the licensed veteran or fraternal organization; or 54.16    (ii) a proportional amount subject to approval by the director and based on the 54.17portion of a building used as the primary headquarters of the licensed veteran or fraternal 54.18organization; 54.19    (17) expenditure by a licensed veterans organization of up to $5,000 in a calendar 54.20year in net costs to the organization for meals and other membership events, limited to 54.21members and spouses, held in recognition of military service. No more than $5,000 can be 54.22expended in total per calendar year under this clause by all licensed veterans organizations 54.23sharing the same veterans post home; 54.24    (18) payment of fees authorized under this chapter imposed by the state of Minnesota 54.25to conduct lawful gambling in Minnesota; 54.26    (19) a contribution or expenditure to honor an individual's humanitarian service 54.27as demonstrated through philanthropy or volunteerism to the United States, this state, 54.28or local community; 54.29    (20) a contribution by a licensed organization to another licensed organization with 54.30prior board approval, with the contribution designated to be used for one or more of the 54.31following lawful purposes under this section: clauses (1) to (7), (11) to (15), (19), and (25); 54.32    (21) an expenditure that is a contribution to a parent organization, if the parent 54.33organization: (i) has not provided to the contributing organization within one year of the 54.34contribution any money, grants, property, or other thing of value, and (ii) has received 54.35prior board approval for the contribution that will be used for a program that meets one or 54.36more of the lawful purposes under subdivision 7a; 55.1    (22) an expenditure for the repair, maintenance, or improvement of real property 55.2and capital assets owned by an organization, or for the replacement of a capital asset that 55.3can no longer be repaired, with a fiscal year limit of five percent of gross profits from 55.4the previous fiscal year, with no carryforward of unused allowances. The fiscal year is 55.5July 1 through June 30. Total expenditures for the fiscal year may not exceed the limit 55.6unless the board has specifically approved the expenditures that exceed the limit due to 55.7extenuating circumstances beyond the organization's control. An expansion of a building 55.8or bar-related expenditures are not allowed under this provision. 55.9    (i) The expenditure must be related to the portion of the real property or capital asset 55.10that must be made available for use free of any charge to other nonprofit organizations, 55.11community groups, or service groups, or is used for the organization's primary mission or 55.12headquarters. 55.13    (ii) An expenditure may be made to bring an existing building that the organization 55.14owns into compliance with the Americans with Disabilities Act. 55.15    (iii) An organization may apply the amount that is allowed under item (ii) to the 55.16erection or acquisition of a replacement building that is in compliance with the Americans 55.17with Disabilities Act if the board has specifically approved the amount. The cost of 55.18the erection or acquisition of a replacement building may not be made from gambling 55.19proceeds, except for the portion allowed under this item; 55.20    (23) an expenditure for the acquisition or improvement of a capital asset with a cost 55.21greater than $2,000, excluding real property, that will be used exclusively for lawful 55.22purposes under this section if the board has specifically approved the amount; 55.23    (24) an expenditure for the acquisition, erection, improvement, or expansion of real 55.24property, if the board has first specifically authorized the expenditure after finding that the 55.25real property will be used exclusively for lawful purpose under this section; or 55.26    (25) an expenditure, including a mortgage payment or other debt service payment, 55.27for the erection or acquisition of a comparable building to replace an organization-owned 55.28building that was destroyed or made uninhabitable by fire or catastrophe or to replace an 55.29organization-owned building that was taken or sold under an eminent domain proceeding. 55.30The expenditure may be only for that part of the replacement cost not reimbursed by 55.31insurance for the fire or catastrophe or compensation not received from a governmental 55.32unit under the eminent domain proceeding, if the board has first specifically authorized 55.33the expenditure. 55.34    (b) Expenditures authorized by the board under clauses (24) and (25) must be 55.3551 percent completed within two years of the date of board approval; otherwise the 55.36organization must reapply to the board for approval of the project. "Fifty-one percent 56.1completed" means that the work completed must represent at least 51 percent of the value 56.2of the project as documented by the contractor or vendor. 56.3    (c) Notwithstanding paragraph (a), "lawful purpose" does not include: 56.4    (1) any expenditure made or incurred for the purpose of influencing the nomination 56.5or election of a candidate for public office or for the purpose of promoting or defeating a 56.6ballot question; 56.7    (2) any activity intended to influence an election or a governmental decision-making 56.8process; 56.9    (3) a contribution to a statutory or home rule charter city, county, or town by a 56.10licensed organization with the knowledge that the governmental unit intends to use the 56.11contribution for a pension or retirement fund; or 56.12    (4) a contribution to a 501(c)(3) organization or other entity with the intent or effect 56.13of not complying with lawful purpose restrictions or requirements. 56.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2012. new text end 56.15    Sec. 22. Minnesota Statutes 2010, section 349.12, subdivision 25b, is amended to read: 56.16    Subd. 25b. Linked bingo game provider. "Linked bingo game provider" means 56.17any person who provides the means to link bingo prizes in a linked bingo game, who 56.18provides linked bingo paper sheets to the participating organizations new text begin games new text end , who provides 56.19linked bingo prize management, and who provides the linked bingo game system. 56.20    Sec. 23. Minnesota Statutes 2010, section 349.12, subdivision 25c, is amended to read: 56.21    Subd. 25c. Linked bingo game system. "Linked bingo game system" means the 56.22equipment used by the linked bingo provider to conduct, transmit, and track a linked 56.23bingo game. The system must be approved by the board before its use in this state and 56.24it 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 56.25its operation remotely. new text begin For linked electronic bingo games, the system includes electronic new text end 56.26 new text begin bingo devices. new text end 56.27    Sec. 24. Minnesota Statutes 2010, section 349.12, subdivision 25d, is amended to read: 56.28    Subd. 25d. Linked bingo prize pool. "Linked bingo prize pool" means the total 56.29of all prize money that each participating organization has contributed to a linked bingo 56.30game prize and includes any portion of the prize pool that is carried over from one 56.31occasion new text begin game new text end to another in a progressive linked bingo game. 56.32    Sec. 25. Minnesota Statutes 2010, section 349.12, subdivision 29, is amended to read: 57.1    Subd. 29. Paddle wheel. "Paddle wheel" means a new text begin vertical new text end wheel marked off into 57.2sections containing one or more numbers, and which, after being turned or spun, uses a 57.3pointer or marker to indicate winning chances new text begin , and may only be used to determine a new text end 57.4 new text begin winning number or numbers matching a winning paddle ticket purchased by a player. A new text end 57.5 new text begin paddle wheel may be an electronic device that simulates a paddle wheel new text end . 57.6    Sec. 26. Minnesota Statutes 2010, section 349.12, subdivision 31, is amended to read: 57.7    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 57.8created and printed by a licensed manufacturer with the words "no purchase necessary" and 57.9"for promotional use only" and for which no consideration is given is a promotional ticket. 57.10    Sec. 27. Minnesota Statutes 2010, section 349.12, subdivision 32, is amended to read: 57.11    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 57.12multi-ply card with perforated break-open tabs, new text begin or a facsimile of a paper pull-tab ticket new text end 57.13 new text begin used in conjunction with an electronic pull-tab device, new text end the face of which is initially 57.14covered to conceal one or more numbers or symbols, new text begin and new text end where one or more of each set of 57.15tickets or new text begin , new text end cards new text begin , or facsimiles new text end has been designated in advance as a winner. 57.16    Sec. 28. Minnesota Statutes 2010, section 349.12, subdivision 34, is amended to read: 57.17    Subd. 34. Tipboard. "Tipboard" means a board, placard or other device containing 57.18a seal that conceals the winning number or symbol, and that serves as the game flare for a 57.19tipboard game. new text begin A sports-themed tipboard is a board, placard, or other device that contains a new text end 57.20 new text begin grid of predesignated numbers for which the winning numbers are determined in whole or new text end 57.21 new text begin in part by the numerical outcome of one or more professional sporting events, serves as the new text end 57.22 new text begin game flare for player registration, but is not required to contain a seal. For a sports-themed new text end 57.23 new text begin tipboard, the winning numbers must be determined solely by the numerical outcome. new text end 57.24    Sec. 29. Minnesota Statutes 2010, section 349.12, subdivision 35, is amended to read: 57.25    Subd. 35. Tipboard ticket. "Tipboard ticket" is a single folded or banded ticket, 57.26or multi-ply card, the face of which is initially covered or otherwise hidden from view 57.27to conceal a number, symbol, or set of symbols, some of which have been designated in 57.28advance and at random as prize winners. new text begin For a sports-themed tipboard, the tipboard ticket new text end 57.29 new text begin contains a set of numbers used to determine the winner based on the numerical outcome new text end 57.30 new text begin of a professional sporting event. new text end 58.1    Sec. 30. Minnesota Statutes 2010, section 349.13, is amended to read: 58.2349.13 LAWFUL GAMBLING. 58.3Lawful gambling is not a lottery or gambling within the meaning of sections 609.75 58.4to 609.76 if it is conducted under this chapter. A pull-tab dispensing device new text begin , electronic new text end 58.5 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 58.6rule is not a gambling device within the meaning of sections 609.75 to 609.76 and chapter 58.7299L. new text begin An electronic game device allowed under this chapter may not be a slot machine. new text end 58.8 new text begin Electronic game devices, including but not limited to electronic bingo devices, electronic new text end 58.9 new text begin paddle wheels, and electronic pull-tab devices authorized under this chapter, may only new text end 58.10 new text begin be used in the conduct of lawful gambling permitted under this chapter and board rule new text end 58.11 new text begin and may not display or simulate any other form of gambling or entertainment, except new text end 58.12 new text begin as otherwise allowed under this chapter. new text end 58.13    Sec. 31. Minnesota Statutes 2010, section 349.151, subdivision 4b, is amended to read: 58.14    Subd. 4b. Pull-tab sales from dispensing devices. (a) The board may by rule 58.15authorize but not require the use of pull-tab dispensing devices. 58.16(b) Rules adopted under paragraph (a): 58.17(1) must limit the number of pull-tab dispensing devices on any permitted premises 58.18to three; and 58.19(2) must limit the use of pull-tab dispensing devices to a permitted premises which is 58.20(i) a licensed premises for on-sales of intoxicating liquor or 3.2 percent malt beverages; 58.21or (ii) a premises where bingo is conducted and admission is restricted to persons 18 58.22years or older. 58.23(c) Notwithstanding rules adopted under paragraph (b), pull-tab dispensing devices 58.24may be used in establishments licensed for the off-sale of intoxicating liquor, other than 58.25drugstores and general food stores licensed under section 340A.405, subdivision 1. 58.26    Sec. 32. Minnesota Statutes 2010, section 349.151, subdivision 4c, is amended to read: 58.27    Subd. 4c. Electronic bingo new text begin devices new text end . (a) The board may by rule authorize but not 58.28require the use of electronic bingo devices. 58.29(b) Rules adopted under paragraph (a): 58.30(1) must limit the number of bingo faces that can be played using an electronic 58.31bingo device to 36; 58.32(2) must require that an electronic bingo device be used with corresponding bingo 58.33paper sheets or a facsimile, printed at the point of sale, as approved by the board; 59.1(3) must require that the electronic bingo device site system have dial-up capability 59.2to permit the board to remotely monitor the operation of the device and the internal 59.3accounting systems; and 59.4(4) must prohibit the price of a face played on an electronic bingo device from being 59.5less than the price of a face on a bingo paper sheet sold at the same occasion. 59.6 new text begin (b) The board, or the director if authorized by the board, may require the deactivation new text end 59.7 new text begin of an electronic bingo device for violation of a law or rule and to implement any other new text end 59.8 new text begin controls deemed necessary to ensure and maintain the integrity of electronic bingo devices new text end 59.9 new text begin and the electronic bingo games played on the devices. new text end 59.10    Sec. 33. Minnesota Statutes 2010, section 349.151, is amended by adding a subdivision 59.11to read: 59.12     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 59.13 new text begin The board may adopt rules it deems necessary to ensure the integrity of electronic pull-tab new text end 59.14 new text begin devices, the electronic pull-tab games played on the devices, and the electronic pull-tab new text end 59.15 new text begin game system necessary to operate them. new text end 59.16 new text begin (b) The board may not require an organization to use electronic pull-tab devices. new text end 59.17 new text begin (c) Before authorizing the lease or sale of electronic pull-tab devices and the new text end 59.18 new text begin electronic pull-tab game system, the board shall examine electronic pull-tab devices new text end 59.19 new text begin allowed under section 349.12, subdivision 12b. The board may contract for the new text end 59.20 new text begin examination of the game system and electronic pull-tab devices and may require a working new text end 59.21 new text begin model to be transported to locations the board designates for testing, examination, and new text end 59.22 new text begin analysis. The manufacturer must pay all costs of any testing, examination, analysis, and new text end 59.23 new text begin transportation of the model. The system must be approved by the board before its use in new text end 59.24 new text begin the state and must have the capability to permit the board to electronically monitor its new text end 59.25 new text begin operation and internal accounting systems. new text end 59.26 new text begin (d) The board may require a manufacturer to submit a certificate from an independent new text end 59.27 new text begin testing laboratory approved by the board to perform testing services, stating that the new text end 59.28 new text begin equipment has been tested, analyzed, and meets the standards required in this chapter new text end 59.29 new text begin and any applicable board rules. new text end 59.30 new text begin (e) The board, or the director if authorized by the board, may require the deactivation new text end 59.31 new text begin of an electronic pull-tab device for violation of a law or rule and to implement any other new text end 59.32 new text begin controls deemed necessary to ensure and maintain the integrity of electronic pull-tab new text end 59.33 new text begin devices and the electronic pull-tab games played on the devices. new text end 60.1    Sec. 34. Minnesota Statutes 2010, section 349.151, is amended by adding a subdivision 60.2to read: 60.3     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 60.4 new text begin conduct of tipboards for which the winning numbers are determined in whole or in part new text end 60.5 new text begin by the numerical outcome of one or more professional sporting events. The rules must new text end 60.6 new text begin provide for operation procedures, internal control standards, posted information, records, new text end 60.7 new text begin and reports. The rules must provide for the award of prizes, method of payout, wagers, new text end 60.8 new text begin determination of winners, and the specifications of these tipboards. new text end 60.9    Sec. 35. Minnesota Statutes 2010, section 349.155, subdivision 3, is amended to read: 60.10    Subd. 3. Mandatory disqualifications. (a) In the case of licenses for manufacturers, 60.11distributors, distributor salespersons, linked bingo game providers, and gambling 60.12managers, the board may not issue or renew a license under this chapter, and shall revoke 60.13a license under this chapter, if the applicant or licensee, or a director, officer, partner, 60.14governor, or person in a supervisory or management position of the applicant or licensee: 60.15    (1) has ever been convicted of a felony or a crime involving gambling; 60.16    (2) has ever been convicted of (i) assault, (ii) a criminal violation involving the use 60.17of a firearm, or (iii) making terroristic threats; 60.18    (3) is or has ever been connected with or engaged in an illegal business; 60.19    (4) owes $500 or more in delinquent taxes as defined in section 270C.72; 60.20    (5) had a sales and use tax permit revoked by the commissioner of revenue within 60.21the past two years; or 60.22    (6) after demand, has not filed tax returns required by the commissioner of revenue. 60.23The board may deny or refuse to renew a license under this chapter, and may revoke a 60.24license under this chapter, if any of the conditions in this paragraph are applicable to 60.25an affiliate or direct or indirect holder of more than a five percent financial interest in 60.26the applicant or licensee. 60.27    (b) In the case of licenses for organizations, the board may not issue a license under 60.28this chapter, and shall revoke a license under this chapter, if the organization, or an officer 60.29or member of the governing body of the organization: 60.30    (1) has been convicted of a felony or gross misdemeanor involving theft or fraud; new text begin or new text end 60.31    (2) has ever been convicted of a crime involving gambling; or new text begin . new text end 60.32    (3) has had a license issued by the board or director permanently revoked for 60.33violation of law or board rule. 60.34    Sec. 36. Minnesota Statutes 2010, section 349.155, subdivision 4, is amended to read: 61.1    Subd. 4. License revocation, suspension, denial; censure. new text begin (a) new text end The board may by 61.2order (i) deny, suspend, revoke, or refuse to renew a license or premises permit, or (ii) 61.3censure a licensee or applicant, if it finds that the order is in the public interest and that the 61.4applicant or licensee, or a director, officer, partner, governor, person in a supervisory or 61.5management position of the applicant or licensee, an employee eligible to make sales on 61.6behalf of the applicant or licensee, or direct or indirect holder of more than a five percent 61.7financial interest in the applicant or licensee: 61.8    (1) has violated or failed to comply with any provision of this chapter or chapter 61.9297E or 299L, or any rule adopted or order issued thereunder; 61.10    (2) has filed an application for a license that is incomplete in any material respect, or 61.11contains a statement that, in light of the circumstances under which it was made, is false, 61.12misleading, fraudulent, or a misrepresentation; 61.13    (3) has made a false statement in a document or report required to be submitted to 61.14the board or the commissioner of revenue, or has made a false statement to the board, the 61.15compliance review group, or the director; 61.16    (4) has been convicted of a crime in another jurisdiction that would be a felony if 61.17committed in Minnesota; 61.18    (5) is permanently or temporarily enjoined by any gambling regulatory agency from 61.19engaging in or continuing any conduct or practice involving any aspect of gambling; 61.20    (6) has had a gambling-related license revoked or suspended, or has paid or been 61.21required to pay a monetary penalty of $2,500 or more, by a gambling regulator in another 61.22state or jurisdiction; 61.23    (7) has been the subject of any of the following actions by the director of alcohol 61.24and gambling enforcement or commissioner of public safety: (i) had a license under 61.25chapter 299L denied, suspended, or revoked, (ii) been censured, reprimanded, has paid or 61.26been required to pay a monetary penalty or fine, or (iii) has been the subject of any other 61.27discipline by the director or commissioner; 61.28    (8) has engaged in conduct that is contrary to the public health, welfare, or safety, or 61.29to the integrity of gambling; or 61.30    (9) based on past activities or criminal record poses a threat to the public interest or 61.31to the effective regulation and control of gambling, or creates or enhances the dangers of 61.32unsuitable, unfair, or illegal practices, methods, and activities in the conduct of gambling 61.33or the carrying on of the business and financial arrangements incidental to the conduct of 61.34gambling. 62.1     new text begin (b) The revocation or suspension of an organization's license may not exceed a new text end 62.2 new text begin period of ten years, including any revocation or suspension imposed by the board prior to new text end 62.3 new text begin the effective date of this paragraph, except that: new text end 62.4     new text begin (1) any prohibition placed by the board on who may be involved in the conduct, new text end 62.5 new text begin oversight, or management of the revoked organization's lawful gambling activity is new text end 62.6 new text begin permanent; and new text end 62.7     new text begin (2) a revocation or suspension will remain in effect until any taxes, fees, and fines new text end 62.8 new text begin that are delinquent have been paid by the organization to the satisfaction of the board. new text end 62.9    Sec. 37. Minnesota Statutes 2010, section 349.161, subdivision 1, is amended to read: 62.10    Subdivision 1. Prohibited acts; licenses required. (a) No person may: 62.11    (1) sell, offer for sale, or furnish gambling equipment for use within the state other 62.12than for lawful gambling exempt or excluded from licensing, except to an organization 62.13licensed for lawful gambling; 62.14    (2) sell, offer for sale, or furnish gambling equipment for use within the state without 62.15having obtained a distributor license or a distributor salesperson license under this section 62.16except that an organization authorized to conduct bingo by the board may loan bingo 62.17hard cards and devices for selecting bingo numbers to another organization authorized to 62.18conduct bingo new text begin and a linked bingo game provider may provide electronic bingo devices for new text end 62.19 new text begin linked electronic bingo games new text end ; 62.20    (3) sell, offer for sale, or furnish gambling equipment for use within the state that is 62.21not purchased or obtained from a manufacturer or distributor licensed under this chapter; or 62.22    (4) sell, offer for sale, or furnish gambling equipment for use within the state that 62.23has the same serial number as another item of gambling equipment of the same type sold 62.24or offered for sale or furnished for use in the state by that distributor. 62.25    (b) No licensed distributor salesperson may sell, offer for sale, or furnish gambling 62.26equipment for use within the state without being employed by a licensed distributor or 62.27owning a distributor license. 62.28 new text begin (c) No distributor or distributor salesperson may also be licensed as a linked bingo new text end 62.29 new text begin game provider under section 349.1635. new text end 62.30    Sec. 38. Minnesota Statutes 2010, section 349.161, subdivision 5, is amended to read: 62.31    Subd. 5. Prohibition. (a) No distributor, distributor salesperson, or other employee 62.32of a distributor, may also be a wholesale distributor of alcoholic beverages or an employee 62.33of a wholesale distributor of alcoholic beverages. 63.1    (b) No distributor, distributor salesperson, or any representative, agent, affiliate, or 63.2other employee of a distributor, may: (1) be involved in the conduct of lawful gambling 63.3by an organization; (2) keep or assist in the keeping of an organization's financial records, 63.4accounts, and inventories; or (3) prepare or assist in the preparation of tax forms and other 63.5reporting forms required to be submitted to the state by an organization. 63.6    (c) No distributor, distributor salesperson, or any representative, agent, affiliate, 63.7or other employee of a distributor may provide a lessor of gambling premises any 63.8compensation, gift, gratuity, premium, or other thing of value. 63.9    (d) No distributor, distributor salesperson, or any representative, agent, affiliate, or 63.10other employee of a distributor may provide an employee or agent of the organization 63.11any compensation, gift, gratuity, premium, or other thing of value greater than $25 per 63.12organization in a calendar year. 63.13    (e) No distributor, distributor salesperson, or any representative, agent, affiliate, or 63.14other employee of a distributor may participate in any gambling activity at any gambling 63.15site or premises where gambling equipment purchased new text begin or leased new text end from that distributor or 63.16distributor salesperson is being used in the conduct of lawful gambling. 63.17    (f) No distributor, distributor salesperson, or any representative, agent, affiliate, or 63.18other employee of a distributor may alter or modify any gambling equipment, except to 63.19add a "last ticket sold" prize sticker new text begin for a paper pull-tab game new text end . 63.20    (g) No distributor, distributor salesperson, or any representative, agent, affiliate, or 63.21other employee of a distributor may: (1) recruit a person to become a gambling manager 63.22of an organization or identify to an organization a person as a candidate to become 63.23gambling manager for the organization; or (2) identify for an organization a potential 63.24gambling location. 63.25    (h) No distributor or distributor salesperson may purchase new text begin or lease new text end gambling 63.26equipment for resale new text begin or lease new text end to a person for use within the state from any person not 63.27licensed as a manufacturer under section 349.163, except for gambling equipment 63.28returned from an organization licensed under section 349.16, or exempt or excluded from 63.29licensing under section 349.166. 63.30    (i) No distributor or distributor salesperson may sell gambling equipment, except 63.31gambling equipment identified as a promotional ticket, to any person for use in Minnesota 63.32other than (i) a licensed organization or organization excluded or exempt from licensing, 63.33or (ii) the governing body of an Indian tribe. 63.34    (j) No distributor or distributor salesperson may sell or otherwise provide a new text begin paper new text end 63.35pull-tab or tipboard deal with the symbol required by section 349.163, subdivision 5, 64.1paragraph (d), visible on the flare to any person other than in Minnesota to a licensed 64.2organization or organization exempt from licensing. 64.3    Sec. 39. Minnesota Statutes 2010, section 349.162, subdivision 5, is amended to read: 64.4    Subd. 5. Sales from facilities. (a) All gambling equipment purchased or possessed 64.5by a licensed distributor for resale new text begin or lease new text end to any person for use in Minnesota must, prior 64.6to the equipment's resale new text begin or lease new text end , be unloaded into a storage facility located in Minnesota 64.7which the distributor owns or leases; and which has been registered, in advance and in 64.8writing, with the Division of Alcohol and Gambling Enforcement as a storage facility of 64.9the distributor. All unregistered gambling equipment and all unaffixed registration stamps 64.10owned by, or in the possession of, a licensed distributor in the state of Minnesota shall be 64.11stored at a storage facility which has been registered with the Division of Alcohol and 64.12Gambling Enforcement. No gambling equipment may be moved from the facility unless 64.13the gambling equipment has been first registered with the board or the Department of 64.14Revenue. new text begin A distributor must notify the board of the method that it will use to sell and new text end 64.15 new text begin transfer electronic pull-tab games to licensed organizations, and must receive approval of new text end 64.16 new text begin the board before implementing or making changes to the approved method. new text end 64.17(b) Notwithstanding section 349.163, subdivisions 5, 6, and 8, a licensed 64.18manufacturer may ship into Minnesota approved or unapproved gambling equipment if the 64.19licensed manufacturer ships the gambling equipment to a Minnesota storage facility that 64.20is: (1) owned or leased by the licensed manufacturer; and (2) registered, in advance and 64.21in writing, with the Division of Alcohol and Gambling Enforcement as a manufacturer's 64.22storage facility. No gambling equipment may be shipped into Minnesota to the 64.23manufacturer's registered storage facility unless the shipment of the gambling equipment 64.24is reported to the Department of Revenue in a manner prescribed by the department. 64.25No gambling equipment may be moved from the storage facility unless the gambling 64.26equipment is sold to a licensed distributor and is otherwise in conformity with this chapter, 64.27is shipped to an out-of-state site and the shipment is reported to the Department of 64.28Revenue in a manner prescribed by the department, or is otherwise sold and shipped as 64.29permitted by board rule. new text begin A manufacturer must notify the board of the method that it will new text end 64.30 new text begin use to sell and transfer electronic pull-tab games to licensed distributors, and must receive new text end 64.31 new text begin approval of the board before implementing or making changes to the approved method. new text end 64.32(c) All storage facilities owned, leased, used, or operated by a licensed distributor 64.33or manufacturer may be entered upon and inspected by the employees of the Division of 64.34Alcohol and Gambling Enforcement, the Division of Alcohol and Gambling Enforcement 64.35director's authorized representatives, employees of the Gambling Control Board or its 65.1authorized representatives, employees of the Department of Revenue, or authorized 65.2representatives of the director of the Division of Special Taxes of the Department of 65.3Revenue during reasonable and regular business hours. Obstruction of, or failure to 65.4permit, entry and inspection is cause for revocation or suspension of a manufacturer's or 65.5distributor's licenses and permits issued under this chapter. 65.6(d) Unregistered gambling equipment found at any location in Minnesota other than 65.7the manufacturing plant of a licensed manufacturer or a registered storage facility are 65.8contraband under section 349.2125. This paragraph does not apply: 65.9(1) to unregistered gambling equipment being transported in interstate commerce 65.10between locations outside this state, if the interstate shipment is verified by a bill of lading 65.11or other valid shipping document; and 65.12(2) to gambling equipment registered with the Department of Revenue for 65.13distribution to the tribal casinos. 65.14    Sec. 40. Minnesota Statutes 2010, section 349.163, subdivision 1, is amended to read: 65.15    Subdivision 1. License required. No manufacturer of gambling equipment may 65.16sell any gambling equipment to any person for use or resale within the state, unless the 65.17manufacturer has a current and valid license issued by the board under this section and has 65.18satisfied other criteria prescribed by the board by rule. new text begin A manufacturer licensed under this new text end 65.19 new text begin section may also be licensed as a linked bingo game provider under section 349.1635. new text end 65.20A manufacturer licensed under this section may not also be directly or indirectly 65.21licensed as a distributor under section 349.161. 65.22    Sec. 41. Minnesota Statutes 2010, section 349.163, subdivision 5, is amended to read: 65.23    Subd. 5. new text begin Paper new text end pull-tab and tipboard flares. (a) A manufacturer may not ship or 65.24cause 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 65.25pull-tabs or tipboards that does not have its own individual flare as required for that deal 65.26by this subdivision and rule of the board. A person other than a manufacturer may not 65.27manufacture, alter, modify, or otherwise change a flare for a deal of new text begin paper new text end pull-tabs or 65.28tipboards except as allowed by this chapter or board rules. 65.29(b) The flare of each new text begin paper new text end pull-tab and tipboard game must have affixed to 65.30or imprinted at the bottom a bar code that provides all information required by the 65.31commissioner of revenue under section 297E.04, subdivision 2. 65.32The serial number included in the bar code must be the same as the serial number 65.33of the tickets included in the deal. A manufacturer who manufactures a deal of new text begin paper new text end 66.1pull-tabs must affix to the outside of the box containing that game the same bar code that 66.2is affixed to or imprinted at the bottom of a flare for that deal. 66.3(c) No person may alter the bar code that appears on the outside of a box containing 66.4a 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 66.5pull-tabs and tipboards that has a bar code different from the bar code of the deal inside 66.6the box is prima facie evidence that the possessor has altered the bar code on the box. 66.7(d) The flare of each deal of new text begin paper new text end pull-tabs and tipboards sold by a manufacturer for 66.8use or resale in Minnesota must have imprinted on it a symbol that is at least one inch high 66.9and one inch wide consisting of an outline of the geographic boundaries of Minnesota 66.10with the letters "MN" inside the outline. The flare must be placed inside the wrapping of 66.11the deal which the flare describes. 66.12(e) Each new text begin paper new text end pull-tab and tipboard flare must bear the following statement printed 66.13in letters large enough to be clearly legible: 66.14"Pull-tab (or tipboard) purchasers -- This pull-tab (or tipboard) game is not legal in 66.15Minnesota unless: 66.16-- an outline of Minnesota with letters "MN" inside it is imprinted on this sheet, and 66.17-- the serial number imprinted on the bar code at the bottom of this sheet is the same 66.18as the serial number on the pull-tab (or tipboard) ticket you have purchased." 66.19(f) The flare of each new text begin paper new text end pull-tab and tipboard game must have the serial number 66.20of the game imprinted on the bar code at the bottom of the flare in numerals at least 66.21one-half inch high. 66.22    Sec. 42. Minnesota Statutes 2010, section 349.163, subdivision 6, is amended to read: 66.23    Subd. 6. Samples of gambling equipment. new text begin (a) new text end The board shall require each 66.24licensed manufacturer to submit to the board one or more samples of each item of gambling 66.25equipment the manufacturer manufactures new text begin manufactured new text end for use or resale in this state. new text begin new text end 66.26 new text begin For purposes of this subdivision, a manufacturer is also required to submit the applicable new text end 66.27 new text begin version of any software necessary to operate electronic devices and related systems. new text end 66.28 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 66.29 new text begin software upgrades, new text end it deems necessary to determine the equipment's compliance with 66.30law and board rules. Samples required under this subdivision must be approved by the 66.31board before the equipment being sampled is shipped into or sold for use or resale in this 66.32state. The board shall impose a fee of $25 for each item of gambling equipment that the 66.33manufacturer submits for approval or for which the manufacturer requests approval. The 66.34board shall impose a fee of $100 for each sample of gambling equipment that it tests. 67.1 new text begin (c) new text end The board may require samples of gambling equipment to be tested by an 67.2independent testing laboratory prior to submission to the board for approval. All costs 67.3of testing by an independent testing laboratory must be borne by the manufacturer. An 67.4independent testing laboratory used by a manufacturer to test samples of gambling 67.5equipment must be approved by the board before the equipment is submitted to the 67.6laboratory for testing. 67.7 new text begin (d) new text end The board may request the assistance of the commissioner of public safety and 67.8the director of the State Lottery in performing the tests. 67.9    Sec. 43. Minnesota Statutes 2010, section 349.1635, subdivision 2, is amended to read: 67.10    Subd. 2. License application. The board may issue a license to a linked bingo game 67.11provider new text begin or to a manufacturer licensed under section 349.163 new text end who meets the qualifications 67.12of this chapter and the rules promulgated by the board. The application shall be on a form 67.13prescribed by the board. The license is valid for two years and the fee for a linked bingo 67.14game provider license is $5,000 per year. 67.15    Sec. 44. Minnesota Statutes 2010, section 349.1635, subdivision 3, is amended to read: 67.16    Subd. 3. Attachments to application. An applicant for a linked bingo game 67.17provider license must attach to its application: 67.18(1) evidence of a bond in the principal amount of $100,000 payable to the state of 67.19Minnesota conditioned on the payment of all linked bingo prizes and any other money due 67.20and payable under this chapter; 67.21(2) detailed plans and specifications for the operation of the linked bingo game and 67.22the linked bingo system, along with a proposed fee schedule for the cost of providing 67.23services and equipment to licensed organizations new text begin which may not exceed 15 percent of new text end 67.24 new text begin gross profits, unless a higher percentage, not to exceed 20 percent, is authorized by the new text end 67.25 new text begin board. The fee schedule must incorporate costs paid to distributors for services provided new text end 67.26 new text begin under subdivision 5 new text end ; and 67.27(3) any other information required by the board by rule. 67.28    Sec. 45. Minnesota Statutes 2010, section 349.1635, is amended by adding a 67.29subdivision to read: 67.30     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 67.31 new text begin provider must contract with licensed distributors for linked bingo game services including, new text end 67.32 new text begin but not limited to, the solicitation of agreements with licensed organizations, and new text end 67.33 new text begin installation, repair, or maintenance of the linked bingo game system. new text end 68.1 new text begin (b) A distributor may not charge a fee to licensed organizations for services new text end 68.2 new text begin authorized and rendered under paragraph (a). new text end 68.3 new text begin (c) A linked bingo game provider may not contract with any distributor on an new text end 68.4 new text begin exclusive basis. new text end 68.5 new text begin (d) A linked bingo game provider may refuse to contract with a licensed distributor new text end 68.6 new text begin if the linked bingo game provider demonstrates that the licensed distributor is not capable new text end 68.7 new text begin of performing the services under the contract. new text end 68.8    Sec. 46. Minnesota Statutes 2010, section 349.165, subdivision 2, is amended to read: 68.9    Subd. 2. Contents of application. An application for a premises permit must 68.10contain: 68.11    (1) the name and address of the applying organization; 68.12    (2) a description of the site for which the permit is sought, including its address and, 68.13where applicable, its placement within another premises or establishment; 68.14    (3) if the site is leased, the name and address of the lessor and information about the 68.15lease the board requires, including all rents and other charges for the use of the site. The 68.16lease term is concurrent with the term of the premises permit. The lease must contain a 68.1730-day termination clause. No lease is required for the conduct of a raffle; and 68.18    (4) other information the board deems necessary to carry out its purposes. 68.19    An organization holding a premises permit must notify the board in writing within 68.20ten days whenever any material change is made in the above information. 68.21    Sec. 47. Minnesota Statutes 2010, section 349.17, subdivision 6, is amended to read: 68.22    Subd. 6. Conduct of bingo. new text begin The price of a face played on an electronic bingo new text end 68.23 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 68.24 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 68.25 new text begin or displayed new text end . Each player must cover, mark, or activate the numbers when bingo numbers 68.26are randomly selected, new text begin and new text end announced, and new text begin or new text end displayed to the players, either manually 68.27or with a flashboard and monitor. The game is won when a player, using bingo paper, 68.28bingo hard card, or a facsimile of a bingo paper sheet, has completed, as described in the 68.29bingo program, a previously designated pattern or previously determined requirements 68.30of the game and declared bingo. The game is completed when a winning card, sheet, or 68.31facsimile is verified and a prize awarded pursuant to subdivision 3. 68.32    Sec. 48. Minnesota Statutes 2010, section 349.17, subdivision 7, is amended to read: 69.1    Subd. 7. Bar bingo. An organization may conduct bar bingo subject to the 69.2following restrictions: 69.3    (1) the bingo is conducted at a site the organization owns or leases and which has a 69.4license for the sale of intoxicating beverages on the premises under chapter 340A; new text begin and new text end 69.5    (2) the bingo is conducted using only bingo paper sheets or facsimiles of bingo paper 69.6sheets purchased from a licensed distributor or licensed linked bingo game provider; and new text begin . new text end 69.7    (3) no rent may be paid for a bar bingo occasion. 69.8    Sec. 49. Minnesota Statutes 2010, section 349.17, subdivision 8, is amended to read: 69.9    Subd. 8. Linked bingo games. (a) A licensed organization may conduct or 69.10participate in not more than two linked bingo games per occasion, one of which may be a new text begin , new text end 69.11 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 69.12one 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 69.13predetermined amount of bingo numbers called new text begin based upon a predetermined and posted new text end 69.14 new text begin win determination new text end . 69.15    (b) Each participating licensed organization shall contribute to each prize awarded in 69.16a linked bingo game in an amount not to exceed $300. new text begin Linked bingo games may only be new text end 69.17 new text begin conducted by licensed organizations who have a valid agreement with the linked bingo new text end 69.18 new text begin game provider. new text end 69.19    (c) An electronic bingo device as defined in section 349.12, subdivision 12a, may 69.20be used for a linked bingo game. 69.21    (d) The board may adopt rules to: 69.22    (1) specify the manner in which a linked bingo game must be played and how the 69.23linked bingo prizes must be awarded; 69.24    (2) specify the records to be maintained by a linked bingo game provider; 69.25    (3) require the submission of periodic reports by the linked bingo game provider and 69.26specify the content of the reports; 69.27    (4) establish the qualifications required to be licensed as a linked bingo game 69.28provider; and 69.29    (5) any other matter involving the operation of a linked bingo game. 69.30    Sec. 50. Minnesota Statutes 2010, section 349.17, is amended by adding a subdivision 69.31to read: 69.32     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 69.33 new text begin addition to the requirements of subdivision 8, the following requirements and restrictions new text end 69.34 new text begin apply when linked bingo games are played exclusively on electronic bingo devices. new text end 70.1 new text begin (a) The permitted premises must be: new text end 70.2 new text begin (1) a premises licensed for the on-sale or off-sale of intoxicating liquor or 3.2 percent new text end 70.3 new text begin malt beverages, except for a general food store or drug store permitted to sell alcoholic new text end 70.4 new text begin beverages under section 340A.405, subdivision 1; or new text end 70.5 new text begin (2) a premises where bingo is conducted as the primary business and has a seating new text end 70.6 new text begin capacity of at least 100. new text end 70.7 new text begin (b) The number of electronic bingo devices is limited to: new text end 70.8 new text begin (1) no more than six devices in play for permitted premises with 200 seats or less; new text end 70.9 new text begin (2) no more than 12 devices in play for permitted premises with 201 seats or more; new text end 70.10 new text begin and new text end 70.11 new text begin (3) no more than 50 devices in play for permitted premises where bingo is the new text end 70.12 new text begin primary business. new text end 70.13 new text begin Seating capacity is determined as specified under the local fire code. new text end 70.14 new text begin (c) Prior to a bingo occasion, the linked bingo game provider, on behalf of the new text end 70.15 new text begin participating organizations, must provide to the board a bingo program in a format new text end 70.16 new text begin prescribed by the board. new text end 70.17 new text begin (d) Before participating in the play of a linked bingo game, a player must present new text end 70.18 new text begin and register a valid picture identification card that includes the player's address and new text end 70.19 new text begin date of birth. new text end 70.20 new text begin (e) An organization may remove from play a device that a player has not maintained new text end 70.21 new text begin in an activated mode for a specified period of time determined by the organization. The new text end 70.22 new text begin organization must provide the notice in its house rules. new text end 70.23    Sec. 51. Minnesota Statutes 2010, section 349.1711, subdivision 1, is amended to read: 70.24    Subdivision 1. Sale of tickets. new text begin (a) new text end Tipboard games must be played using only 70.25tipboard tickets that are either (1) attached to a placard and arranged in columns or rows, 70.26or (2) separate from the placard and contained in a receptacle while the game is in play. 70.27The placard serves as the game flare. 70.28 new text begin (b) Except for a sports-themed tipboard, new text end the placard must contain a seal that conceals 70.29the winning number or symbol. When a tipboard ticket is purchased and opened from a 70.30game containing more than 32 tickets, each player having a tipboard ticket with one or 70.31more predesignated numbers or symbols must sign the placard at the line indicated by the 70.32number or symbol on the tipboard ticket. 70.33    Sec. 52. Minnesota Statutes 2010, section 349.1711, subdivision 2, is amended to read: 71.1    Subd. 2. Determination of winners. When the predesignated numbers or symbols 71.2have all been purchased, or all of the tipboard tickets for that game have been sold, 71.3the seal must be removed to reveal a number or symbol that determines which of the 71.4predesignated numbers or symbols is the winning number or symbol. A tipboard may also 71.5contain consolation winners new text begin , or winning chances that are determined in whole or in part new text end 71.6 new text begin by the numerical outcome of one or more professional sporting events, new text end that need not be 71.7determined by the use of the seal. 71.8    Sec. 53. Minnesota Statutes 2010, section 349.1721, is amended to read: 71.9349.1721 CONDUCT OF PULL-TABS. 71.10    Subdivision 1. Cumulative or carryover games. The board shall by rule permit 71.11pull-tab games with multiple seals. The board shall also adopt rules for pull-tab games with 71.12cumulative or carryover prizes. new text begin The rules shall also apply to electronic pull-tab games. new text end 71.13    Subd. 2. Event games. The board shall by rule permit pull-tab games in which 71.14certain winners are determined by the random selection of one or more bingo numbers 71.15or by another method approved by the board. new text begin The rules shall also apply to electronic new text end 71.16 new text begin pull-tab games. new text end 71.17     new text begin Subd. 3. new text end new text begin Pull-tab dispensing device location restrictions and requirements. new text end 71.18 new text begin The following pertain to pull-tab dispensing devices as defined under section 349.12, new text end 71.19 new text begin subdivision 32a. new text end 71.20 new text begin (a) The use of any pull-tab dispensing device must be at a permitted premises new text end 71.21 new text begin which is: new text end 71.22 new text begin (1) a licensed premises for on-sale of intoxicating liquor or 3.2 percent malt new text end 71.23 new text begin beverages; new text end 71.24 new text begin (2) a premises where bingo is conducted as the primary business; or new text end 71.25 new text begin (3) an establishment licensed for the off-sale of intoxicating liquor, other than drug new text end 71.26 new text begin stores and general food stores licensed under section 340A.405, subdivision 1. new text end 71.27 new text begin (b) The number of pull-tab dispensing devices located at any permitted premises new text end 71.28 new text begin is limited to three. new text end 71.29     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 71.30 new text begin pertain to the use of electronic pull-tab devices as defined under section 349.12, new text end 71.31 new text begin subdivision 12b. new text end 71.32 new text begin (a) The use of any electronic pull-tab device may only be at a permitted premises new text end 71.33 new text begin that is: new text end 72.1 new text begin (1) a premises licensed for the on-sale or off-sale of intoxicating liquor or 3.2 percent new text end 72.2 new text begin malt beverages, except for a general food store or drug store permitted to sell alcoholic new text end 72.3 new text begin beverages under section 340A.405, subdivision 1; or new text end 72.4 new text begin (2) a premises where bingo is conducted as the primary business and has a seating new text end 72.5 new text begin capacity of at least 100; and new text end 72.6 new text begin (3) where the licensed organization sells paper pull-tabs. new text end 72.7 new text begin (b) The number of electronic pull-tab devices is limited to: new text end 72.8 new text begin (1) no more than six devices in play at any permitted premises with 200 seats or less; new text end 72.9 new text begin (2) no more than 12 devices in play at any permitted premises with 201 seats new text end 72.10 new text begin or more; and new text end 72.11 new text begin (3) no more than 50 devices in play at any permitted premises where the primary new text end 72.12 new text begin business is bingo. new text end 72.13 new text begin Seating capacity is determined as specified under the local fire code. new text end 72.14 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 72.15 new text begin (d) All electronic pull-tab games must be sold and played on the permitted premises new text end 72.16 new text begin and may not be linked to other permitted premises. new text end 72.17 new text begin (e) Electronic pull-tab games may not be transferred electronically or otherwise to new text end 72.18 new text begin any other location by the licensed organization. new text end 72.19 new text begin (f) Electronic pull-tab games may be commingled if the games are from the same new text end 72.20 new text begin family of games and manufacturer and contain the same game name, form number, type new text end 72.21 new text begin of game, ticket count, prize amounts, and prize denominations. Each commingled game new text end 72.22 new text begin must have a unique serial number. new text end 72.23 new text begin (g) An organization may remove from play a device that a player has not maintained new text end 72.24 new text begin in an activated mode for a specified period of time determined by the organization. The new text end 72.25 new text begin organization must provide the notice in its house rules. new text end 72.26 new text begin (h) Before participating in the play of an electronic pull-tab game, a player must new text end 72.27 new text begin present and register a valid picture identification card that includes the player's address new text end 72.28 new text begin and date of birth. new text end 72.29 new text begin (i) Each player is limited to the use of one device at a time. new text end 72.30     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 72.31 new text begin the holders of certain predesignated winning tickets, with a prize value not to exceed $75 new text end 72.32 new text begin each, have the option of turning in the winning tickets for the chance to win a prize of new text end 72.33 new text begin greater value. new text end 72.34    Sec. 54. Minnesota Statutes 2010, section 349.18, subdivision 1, is amended to read: 73.1    Subdivision 1. Lease or ownership required; rent limitations. (a) An organization 73.2may conduct lawful gambling only on premises it owns or leases. Leases must be on a 73.3form prescribed by the board. The term of the lease is concurrent with the premises permit. 73.4Leases approved by the board must specify that the board may authorize an organization 73.5to withhold rent from a lessor for a period of up to 90 days if the board determines that 73.6illegal gambling occurred on the premises or that the lessor or its employees participated 73.7in the illegal gambling or knew of the gambling and did not take prompt action to stop the 73.8gambling. The lease must authorize the continued tenancy of the organization without 73.9the payment of rent during the time period determined by the board under this paragraph. 73.10Copies of all leases must be made available to employees of the board and the Division of 73.11Alcohol and Gambling Enforcement on request. 73.12    (b) Rent paid by an organization for leased premises for the conduct of pull-tabs, 73.13tipboards, and paddle wheels new text begin lawful gambling new text end is subject to the following limits new text begin and new text end 73.14 new text begin restrictions new text end : 73.15    (1) For booth operations, including booth operations where a pull-tab dispensing 73.16device is located, booth operations where a bar operation is also conducted, and booth 73.17operations where both a pull-tab dispensing device is located and a bar operation is also 73.18conducted, the maximum rent is: new text begin monthly rent may not exceed ten percent of gross profits new text end 73.19 new text begin for that month. Total rent paid to a lessor from all organizations from leases governed by new text end 73.20 new text begin this clause may not exceed $1,750 per month. new text end 73.21    (i) in any month where the organization's gross profit at those premises does not 73.22exceed $4,000, up to $400; and 73.23    (ii) in any month where the organization's gross profit at those premises exceeds 73.24$4,000, up to $400 plus not more than ten percent of the gross profit for that month in 73.25excess of $4,000; 73.26    (2) For bar operations, including bar operations where a pull-tab dispensing device 73.27is located but not including bar operations subject to clause (1), and for locations where 73.28only a pull-tab dispensing device is located: new text begin monthly rent may not exceed: new text end 73.29 new text begin (i) 15 percent of the gross profits for that month from pull-tabs sold from a pull-tab new text end 73.30 new text begin dispensing device, electronic pull-tab games, and electronic linked bingo games; and new text end 73.31 new text begin (ii) more than 20 percent of gross profits from all other forms of lawful gambling. new text end 73.32    (i) in any month where the organization's gross profit at those premises does not 73.33exceed $1,000, up to $200; and 73.34    (ii) in any month where the organization's gross profit at those premises exceeds 73.35$1,000, up to $200 plus not more than 20 percent of the gross profit for that month 73.36in excess of $1,000; 74.1    (3) a lease not governed by clauses (1) and (2) must be approved by the board before 74.2becoming effective; new text begin For electronic linked bingo games and electronic pull-tab games that new text end 74.3 new text begin are operated for separate time periods within a business day by an organization and the new text end 74.4 new text begin lessor, monthly rent may not be more than: new text end 74.5 new text begin (i) 15 percent of the gross profits for that month for the time periods operated by new text end 74.6 new text begin the lessor. The lessor is responsible for cash shortages that occur during the time periods new text end 74.7 new text begin the games are operated by the lessor; and new text end 74.8 new text begin (ii) ten percent of gross profits for that month for the time periods operated by the new text end 74.9 new text begin organization. The organization is responsible for cash shortages that occur during the time new text end 74.10 new text begin periods the games are operated by the organization. new text end 74.11    (4) total rent paid to a lessor from all organizations from leases governed by clause 74.12(1) may not exceed $1,750 per month. 74.13    (c) Rent paid by an organization for leased premises for the conduct of bingo is 74.14subject to either of the following limits at the option of the parties to the lease: 74.15    (1) new text begin (4) For bingo conducted at a leased premises where the primary business is new text end 74.16 new text begin bingo, rent is limited to either new text end not more than ten percent of the monthly gross profit from 74.17all lawful gambling activities held during bingo occasions new text begin , new text end excluding bar bingo or at a 74.18rate based on a cost per square foot not to exceed 110 percent of a comparable cost per 74.19square foot for leased space as approved by the director; and new text begin . new text end 74.20    (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 . 74.21 new text begin (6) A lease not governed by clauses (1) to (5) must be approved by the director new text end 74.22 new text begin before becoming effective. new text end 74.23    (d) new text begin (c) new text end Amounts paid as rent under leases are all-inclusive. No other services or 74.24expenses provided or contracted by the lessor may be paid by the organization, including, 74.25but not limited to, trash removal, janitorial and cleaning services, snow removal, lawn 74.26services, electricity, heat, security, security monitoring, storage, new text begin and new text end other utilities or 74.27services, and, in the case of bar operations, cash shortages, unless approved by the 74.28director. new text begin The lessor shall be responsible for the cost of any communications network or new text end 74.29 new text begin service required to conduct electronic pull-tab games or electronic bingo games. new text end Any 74.30other expenditure made by an organization that is related to a leased premises must be 74.31approved by the director. new text begin For bar operations, the lessor is responsible for cash shortages. new text end 74.32An organization may not provide any compensation or thing of value to a lessor or the 74.33lessor's employees from any fund source other than its gambling account. Rent payments 74.34may not be made to an individual. 75.1    (e) new text begin (d) new text end Notwithstanding paragraph (b), an organization may pay a lessor for food 75.2or beverages or meeting room rental if the charge made is comparable to similar charges 75.3made to other individuals or groups. 75.4    (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 75.5within a booth operation new text begin on behalf of the lessor new text end on a leased premises. 75.6    Sec. 55. Minnesota Statutes 2010, section 349.19, subdivision 2, is amended to read: 75.7    Subd. 2. Accounts. (a) Gross receipts from lawful gambling by each organization 75.8must be segregated from all other revenues of the conducting organization and placed in a 75.9separate gambling bank account. 75.10(b) All expenditures for allowable expenses, taxes, and lawful purposes must be 75.11made from the separate account except (1) in the case of expenditures previously approved 75.12by the organization's membership for emergencies as defined by board rule, (2) as provided 75.13in subdivision 2a, or (3) when restricted to one electronic fund transaction for the payment 75.14of taxes for the organization as a whole, the organization may transfer the amount of taxes 75.15related to the conduct of gambling to the general account at the time when due and payable. 75.16(c) The name and address of the bank, the account number for the separate account, 75.17and the names of organization members authorized as signatories on the separate account 75.18must be provided to the board when the application is submitted. Changes in the 75.19information must be submitted to the board at least ten days before the change is made. 75.20(d) new text begin Except for gambling receipts from electronic pull-tab games and linked new text end 75.21 new text begin electronic bingo games, new text end gambling receipts must be deposited into the gambling bank 75.22account within four business days of completion of the bingo occasion, deal, or game from 75.23which they are received. 75.24 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 75.25the deal is sold or the organization does not continue the play of the deal during the next 75.26scheduled period of time in which the organization will conduct pull-tabs. 75.27 new text begin (2) new text end A tipboard game is considered complete when the seal on the game flare is 75.28uncovered or the organization does not continue the play of the deal during the next 75.29scheduled period of time in which the organization will conduct tipboards. 75.30 new text begin (e) Gambling receipts from all electronic pull-tab games and all linked electronic new text end 75.31 new text begin bingo games must be recorded on a daily basis and deposited into the gambling bank new text end 75.32 new text begin account within two business days. new text end 75.33(e) new text begin (f) new text end Deposit records must be sufficient to allow determination of deposits made 75.34from each bingo occasion, deal, or game at each permitted premises. 76.1(f) new text begin (g) new text end The person who accounts for gambling gross receipts and profits may not be 76.2the same person who accounts for other revenues of the organization. 76.3    Sec. 56. Minnesota Statutes 2010, section 349.19, subdivision 3, is amended to read: 76.4    Subd. 3. Expenditures. (a) All expenditures of gross profits from lawful gambling 76.5must be itemized as to payee, purpose, amount, and date of payment. 76.6(b) Each licensed organization must report monthly to the board on a form new text begin in an new text end 76.7 new text begin electronic format new text end prescribed by the board each expenditure or contribution of net profits 76.8from lawful gambling. The reports must provide for each expenditure or contribution: 76.9(1) the name of the recipient of the expenditure or contribution; 76.10(2) the date the expenditure or contribution was approved by the organization; 76.11(3) the date, amount, and check number or electronic transfer confirmation number 76.12of the expenditure or contribution; 76.13(4) a brief description of how the expenditure or contribution meets one or more of 76.14the purposes in section 349.12, subdivision 25; and 76.15(5) in the case of expenditures authorized under section 349.12, subdivision 25, 76.16paragraph (a), clause (7), whether the expenditure is for a facility or activity that primarily 76.17benefits male or female participants. 76.18(c) Authorization of the expenditures must be recorded in the monthly meeting 76.19minutes of the licensed organization. 76.20(d) Checks or authorizations for electronic fund transfers for expenditures of gross 76.21profits must be signed by at least two persons authorized by board rules to sign the 76.22checks or authorizations. 76.23(e) Expenditures of gross profits from lawful gambling for local, state, and federal 76.24taxes as identified in section 349.12, subdivision 25, paragraph (a), clause (8), may be 76.25transferred electronically from the organization's gambling account directly to bank 76.26accounts identified by local, state, or federal agencies if the organization's gambling 76.27account monthly bank statement specifically identifies the payee by name, the amount 76.28transferred, and the date of the transaction. 76.29(f) Expenditures of gross profits from lawful gambling for payments for lawful 76.30purpose expenditures and allowable expenses may be transferred electronically from the 76.31organization's gambling account directly to bank accounts identified by the vendor if the 76.32organization's gambling account monthly bank statement specifically identifies the payee 76.33by name, the amount transferred, the account number of the account into which the funds 76.34were transferred, and the date of the transaction. 77.1(g) Expenditures of gross profits from lawful gambling for payroll compensation 77.2to an employee's account and for the payment of local, state, and federal withholding 77.3taxes may be transferred electronically to and from the account of a payroll processing 77.4firm provided that the firm: 77.5(1) is currently registered with and meets the criteria of the Department of Revenue 77.6as a third-party bulk filer under section 290.92, subdivision 30; 77.7(2) is able to provide proof of a third-party audit and an annual report and statement 77.8of financial condition; 77.9(3) is able to provide evidence of a fidelity bond; and 77.10(4) can provide proof of having been in business as a third-party bulk filer for the 77.11most recent three years. 77.12(h) Electronic payments of taxes, lawful purpose expenditures, and allowable 77.13expenses are permitted only if they have been authorized by the membership, the 77.14organization maintains supporting documentation, and the expenditures can be verified. 77.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2012. new text end 77.16    Sec. 57. Minnesota Statutes 2010, section 349.19, subdivision 5, is amended to read: 77.17    Subd. 5. Reports. new text begin (a) new text end A licensed organization must report new text begin monthly new text end to the 77.18Department of Revenue new text begin board in an electronic format prescribed by the board new text end and to its 77.19membership monthly, or quarterly in the case of a licensed organization which does not 77.20report more than $1,000 in gross receipts from lawful gambling in any calendar quarter, 77.21on its gross receipts, expenses, profits, and expenditure of profits from lawful gambling new text begin new text end 77.22 new text begin for each permitted premises. The organization must account for and report on each form new text end 77.23 new text begin of lawful gambling conducted new text end . The report new text begin organization new text end must include a reconciliation of 77.24the organization's profit carryover with its cash balance on hand. If the organization 77.25conducts both bingo and other forms of lawful gambling, the figures for both must be 77.26reported separately. 77.27 new text begin (b) new text end The organization must report annually to its membership and annually file with 77.28the board a financial summary report in a format prescribed by the board that identifies the 77.29organization's receipts and use of lawful gambling proceeds, including: new text begin monthly to the new text end 77.30 new text begin commissioner of revenue as required under section 297E.06. new text end 77.31(1) gross receipts; 77.32(2) prizes paid; 77.33(3) allowable expenses; 78.1(4) lawful purpose expenditures, including annual totals for types of charitable 78.2contributions and all taxes and fees as per section 349.12, subdivision 25, paragraph 78.3(a), clauses (8) and (18); 78.4(5) the percentage of annual gross profits used for charitable contributions; and 78.5(6) the percentage of annual gross profits used for all taxes and fees as per section 78.6349.12, subdivision 25, paragraph (a), clauses (8) and (18). 78.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2012. new text end 78.8    Sec. 58. Minnesota Statutes 2010, section 349.19, subdivision 10, is amended to read: 78.9    Subd. 10. Pull-tab records. (a) The board shall by rule require a licensed 78.10organization to require each winner of a new text begin paper new text end pull-tab prize of $50 or more to present 78.11identification in the form of a driver's license, Minnesota identification card, or other 78.12identification the board deems sufficient to allow the identification and tracking of the 78.13winner. The rule must require the organization to retain winning new text begin paper new text end pull-tabs of $50 or 78.14more, and the identification of the winner of the pull-tab, for 3-1/2 years. 78.15    (b) An organization must maintain separate cash banks for each deal of new text begin paper new text end 78.16pull-tabs unless (1) the licensed organization uses a pull-tab dispensing device, or (2) the 78.17organization uses a cash register, of a type approved by the board, which records all 78.18sales of new text begin paper new text end pull-tabs by separate deals. 78.19    (c) The board shall: 78.20    (1) by rule adopt minimum technical standards for cash registers that may be used 78.21by organizations, and shall approve for use by organizations any cash register that meets 78.22the standards; and 78.23    (2) before allowing an organization to use a cash register that commingles receipts 78.24from several different new text begin paper new text end pull-tab games in play, adopt rules that define how cash 78.25registers may be used and that establish a procedure for organizations to reconcile all 78.26pull-tab games in play at the end of each month. 78.27    Sec. 59. Minnesota Statutes 2010, section 349.211, subdivision 1a, is amended to read: 78.28    Subd. 1a. Linked bingo prizes. Prizes for a linked bingo game shall be limited 78.29as follows: 78.30(1) no organization may contribute more than $300 per linked bingo game to a 78.31linked bingo prize pool new text begin for linked bingo games played without electronic bingo devices, new text end 78.32 new text begin an organization may not contribute to a linked bingo game prize pool more than $300 new text end 78.33 new text begin per linked bingo game per site new text end ; 79.1 new text begin (2) for linked bingo games played exclusively with electronic bingo devices, an new text end 79.2 new text begin organization may not contribute more than 85 percent of the gross receipts per permitted new text end 79.3 new text begin premises to a linked bingo game prize pool; new text end 79.4(2) new text begin (3) new text end no organization may award more than $200 for a linked bingo game 79.5consolation prize. For purposes of this subdivision, a linked bingo game consolation 79.6prize is a prize awarded by an organization after a prize from the linked bingo prize pool 79.7has been won; and 79.8    (3) new text begin (4) new text end for a progressive linked bingo game, if no player declares a valid bingo 79.9within the new text begin for a progressive prize or prizes based on a new text end predetermined amount of bingo 79.10numbers 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 79.11 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 79.12is won. The portion of the prize that is not carried over must be awarded to the first 79.13player or players who declares a valid bingo as additional numbers are called. If a valid 79.14bingo is declared within the predetermined amount of bingo numbers called, the entire 79.15prize pool for that game is awarded to the winner. The annual limit for progressive bingo 79.16game prizes contained in subdivision 2 must be reduced by the amount an organization 79.17contributes to progressive linked bingo games during the same calendar year. new text begin ; and new text end 79.18 new text begin (5) for linked bingo games played exclusively with electronic bingo devices, linked new text end 79.19 new text begin bingo prizes in excess of $599 shall be paid by the linked bingo game provider to the new text end 79.20 new text begin player within three business days. Winners of linked bingo prizes in excess of $599 will new text end 79.21 new text begin be given a receipt or claim voucher as proof of a win. new text end 79.22    Sec. 60. Minnesota Statutes 2010, section 349.211, subdivision 2c, is amended to read: 79.23    Subd. 2c. Tipboard prizes. new text begin (a) new text end The maximum prize which may be awarded for 79.24a tipboard ticket is $599 for $2 and under tipboard tickets, $899 for $3 tipboard tickets, 79.25$1,199 for $4 tipboard tickets, and $1,499 for $5 tipboard tickets, not including any 79.26cumulative or carryover prizes. Cumulative or carryover prizes in tipboard games shall 79.27not exceed $2,500. An organization may not sell any tipboard ticket for more than $5. 79.28 new text begin (b) For sports-themed tipboards, the total prize payout may not exceed the amount in new text end 79.29 new text begin section 349.2113, and each chance or ticket may not be sold for more than $10. new text end 79.30    Sec. 61. new text begin SEVERABILITY. new text end 79.31 new text begin If any provision of this act is found to be invalid because it is in conflict with a new text end 79.32 new text begin provision of the Minnesota Constitution or the Constitution of the United States, or for any new text end 79.33 new text begin other reason, all other provisions of this act shall remain valid and any rights, remedies, new text end 80.1 new text begin and privileges that have been otherwise accrued by this act, shall remain in effect and may new text end 80.2 new text begin be proceeded with and concluded under this act. new text end 80.3    Sec. 62. new text begin APPROPRIATION. new text end 80.4 new text begin $1,219,000 in fiscal year 2013 is appropriated from the lawful gambling regulation new text end 80.5 new text begin account in the special revenue fund to the Gambling Control Board for operating expenses new text end 80.6 new text begin related to the regulatory oversight of lawful gambling for electronic pull-tabs and new text end 80.7 new text begin electronic linked bingo. new text end 80.8    Sec. 63. new text begin REPEALER. new text end 80.9 new text begin Minnesota Statutes 2010, sections 297E.02, subdivision 4; 349.15, subdivision 3; new text end 80.10 new text begin and 349.19, subdivision 2a, new text end new text begin are repealed. new text end 80.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for games sold by a licensed new text end 80.12 new text begin distributor after June 30, 2012, and the commissioner of revenue retains the authority to new text end 80.13 new text begin issue refunds under Minnesota Statutes 2010, section 297E.02, subdivision 4, paragraph new text end 80.14 new text begin (d), for games sold before July 1, 2012. new text end 80.15    Sec. 64. new text begin EFFECTIVE DATE. new text end 80.16 new text begin Unless otherwise specifically provided, this act is effective the day following final new text end 80.17 new text begin enactment. new text end 80.18ARTICLE 6 80.19MISCELLANEOUS 80.20    Section 1. new text begin USE OF THE STADIUM. new text end 80.21     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 80.22 new text begin facilities of the stadium available to the Minnesota Amateur Sports Commission up to new text end 80.23 new text begin ten days each year on terms satisfactory to the commission for amateur sports activities new text end 80.24 new text begin consistent with Minnesota Statutes, chapter 240A, each year during the time the bonds new text end 80.25 new text begin issued pursuant to this act are outstanding. The commission must negotiate in good faith new text end 80.26 new text begin and may be required to pay no more than actual out-of-pocket expenses for the time new text end 80.27 new text begin it uses the stadium. new text end 80.28     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 80.29 new text begin the stadium available for use by the Minnesota State High School League for at least seven new text end 80.30 new text begin days each year for high school soccer and football tournaments. The lessee of the stadium new text end 81.1 new text begin must provide, and may not charge the league a fee for, this use, including security, ticket new text end 81.2 new text begin takers, custodial or cleaning services, or other similar services in connection with this use. new text end 81.3ARTICLE 7 81.4STADIUM BLINK-ON FUNDING 81.5    Section 1. new text begin [16A.1524] BACKUP REVENUES; FOOTBALL STADIUM new text end 81.6 new text begin FUNDING. new text end 81.7     new text begin (a) If the commissioner of management and budget determines that the amount of new text end 81.8 new text begin revenues under section 16A.965, subdivision 8, paragraph (a), for the next fiscal year will new text end 81.9 new text begin be less than the amounts specified in section 16A.965, subdivision 8, paragraph (b), for new text end 81.10 new text begin that fiscal year, the commissioner may implement the revenue options authorized in this new text end 81.11 new text begin article. If the commissioner determines to exercise the authority under this section for new text end 81.12 new text begin a fiscal year, the commissioner must implement the revenue options, as necessary, in new text end 81.13 new text begin the following order: new text end 81.14 new text begin (1) a tax on luxury boxes as provided under section 473J.14, paragraph (a), clause new text end 81.15 new text begin (1); new text end 81.16     new text begin (2) a sports-themed lottery game under section 349A.20; new text end 81.17 new text begin (3) an extension of the convention center taxes under article 4 through calendar new text end 81.18 new text begin year 2050; new text end 81.19     new text begin (4) excess revenue from Hennepin County tax as provided under section 473.757, new text end 81.20 new text begin subdivision 11, paragraph (d); and new text end 81.21     new text begin (5) an admissions tax, as provided under section 473J.14, paragraph (a), clause (2). new text end 81.22     new text begin (b) Revenue raised under the authority granted by this section must be deposited new text end 81.23 new text begin in the general fund. new text end 81.24     new text begin (c) If the commissioner determines to implement one or more of the revenue options new text end 81.25 new text begin authorized by this section, each subsequent year the commissioner must determine if new text end 81.26 new text begin the revenue is needed and will be imposed and collected for the next fiscal year. If the new text end 81.27 new text begin commissioner determines that one or more revenue options implemented for a fiscal year new text end 81.28 new text begin are not needed for a subsequent fiscal year, the commissioner must terminate them in the new text end 81.29 new text begin reverse order they were required to be implemented by paragraph (a) with the last option new text end 81.30 new text begin implemented terminated first and so forth. new text end 81.31     new text begin (d) Before implementing a revenue source authorized under this section, the new text end 81.32 new text begin commissioner must report the intent to do so to the Legislative Commission on Planning new text end 81.33 new text begin and Fiscal Policy. The commissioner must inform the commission of determinations to new text end 81.34 new text begin continue or discontinue each revenue source for a subsequent fiscal year. new text end 82.1    Sec. 2. new text begin [349A.20] STADIUM, SPORTS-THEMED GAME. new text end 82.2     new text begin The State Lottery shall conduct a game based on stadium or professional sports new text end 82.3 new text begin themes to generate a minimum of $2,100,000 in additional revenue for the fiscal year new text end 82.4 new text begin for the general fund. new text end 82.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective pursuant to the authority granted new text end 82.6 new text begin under section 1, on the day following final enactment. new text end 82.7    Sec. 3. Minnesota Statutes 2011 Supplement, section 473.757, subdivision 11, is 82.8amended to read: 82.9    Subd. 11. Uses of tax. (a) Revenues received from the tax imposed under 82.10subdivision 10 may be used: 82.11    (1) to pay costs of collection; 82.12    (2) to pay or reimburse or secure the payment of any principal of, premium, or 82.13interest on bonds issued in accordance with Laws 2006, chapter 257, section 12; 82.14    (3) to pay costs and make expenditures and grants described in this section, including 82.15financing costs related to them; 82.16    (4) to maintain reserves for the foregoing purposes deemed reasonable and 82.17appropriate by the county; 82.18    (5) to pay for operating costs of the ballpark authority other than the cost of 82.19operating or maintaining the ballpark; and 82.20    (6) to make expenditures and grants for youth activities and amateur sports and 82.21extension of library hours as described in subdivision 2; 82.22and for no other purpose. 82.23    (b) Revenues from the tax designated for use under paragraph (a), clause (5), must 82.24be deposited in the operating fund of the ballpark authority. 82.25    (c) After completion of the ballpark and public infrastructure, the tax revenues not 82.26required for current payments of the expenditures described in paragraph (a), clauses (1) to 82.27(6), shall be used to (i) redeem or defease the bonds and (ii) prepay or establish a fund for 82.28payment of future obligations under grants or other commitments for future expenditures 82.29which are permitted by this section. Upon the redemption or defeasance of the bonds and 82.30the establishment of reserves adequate to meet such future obligations, the taxes shall 82.31terminate and shall not be reimposed. For purposes of this subdivision, "reserves adequate 82.32to meet such future obligations" means a reserve that does not exceed the net present value 82.33of the county's obligation to make grants under paragraph (a), clauses (5) and (6), and to 82.34fund the reserve for capital improvements required under section 473.759, subdivision 3, 83.1for the 30-year period beginning on the date of the original issuance of the bonds, less 83.2those obligations that the county has already paid. new text begin Each fiscal year revenues available new text end 83.3 new text begin for use under this paragraph must be accumulated and may not be expended under this new text end 83.4 new text begin paragraph until 15 days after the close of the county's fiscal year, provided that the county new text end 83.5 new text begin has not received a notice under paragraph (d). new text end 83.6     new text begin (d) Notwithstanding the authority to use revenues under paragraph (c), upon new text end 83.7 new text begin notification by the commissioner of management and budget under section 16A.1524 for a new text end 83.8 new text begin state fiscal year, the county must pay any revenues that would be available under paragraph new text end 83.9 new text begin (c) to the commissioner for that state fiscal year as provided under section 16A.1524. new text end 83.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 83.11 new text begin without local approval by Hennepin County under Minnesota Statutes, section 645.023, new text end 83.12 new text begin subdivision 1, paragraph (c). new text end 83.13    Sec. 4. new text begin [473J.14] ADMISSIONS TAX. new text end 83.14     new text begin (a) Upon notification by the commissioner of management and budget under section new text end 83.15 new text begin 16A.1524, the commission shall by resolution impose and maintain a ten percent tax new text end 83.16 new text begin on either or both of: new text end 83.17 new text begin (1) the gross receipts received for the rental of box seats, suites, sky boxes, and new text end 83.18 new text begin similar in the NFL stadium; or new text end 83.19 new text begin (2) the granting, issuance, sale, or distribution, by any private or public person, new text end 83.20 new text begin association, or corporation, of the privilege of admission to professional sporting events new text end 83.21 new text begin at the NFL stadium. new text end 83.22 new text begin (b) Each tax must be imposed in the years specified by the commissioner of new text end 83.23 new text begin management and budget. The suites rental tax under paragraph (a), clause (1), applies to new text end 83.24 new text begin the gross receipts, as defined under section 297A.61, received by the seller, as defined new text end 83.25 new text begin in section 297A.61, and is a debt owed by the seller to the commission. The admission new text end 83.26 new text begin tax under paragraph (a), clause (2), must be stated and charged separately from the sales new text end 83.27 new text begin price so far as practicable and the grantor, seller, or distributor must collect the tax from new text end 83.28 new text begin the person admitted and the tax is a debt from that person to the grantor, issuer, seller, or new text end 83.29 new text begin distributor, and the tax required to be collected is a debt owed by the grantor, issuer, seller, new text end 83.30 new text begin or distributor to the commission. Any tax imposed under this section is recoverable at new text end 83.31 new text begin law by the commission from the grantor, issuer, seller, or distributor in the same manner new text end 83.32 new text begin as other debts. Every person granting, issuing, selling, or distributing tickets for taxable new text end 83.33 new text begin admissions or renting boxes, suites, or similar may be required, as provided in resolutions new text end 83.34 new text begin of the commission, to secure a permit, to file returns, to deposit security for the payment new text end 83.35 new text begin of the tax, and to pay the penalties for nonpayment and interest on late payments, as the new text end 84.1 new text begin commission deems necessary or expedient to assure the prompt and uniform collection of new text end 84.2 new text begin either or both of the taxes. new text end 84.3     new text begin (c) The commission shall remit the proceeds of any taxes imposed under this section new text end 84.4 new text begin to the commissioner of management and budget for deposit in the state's general fund. new text end 84.5     new text begin (d) Notwithstanding any other provisions of this section, the imposition of an new text end 84.6 new text begin admission tax upon a national superbowl football game conducted at the NFL stadium is new text end 84.7 new text begin discretionary with the commission. new text end 84.8    Sec. 5. new text begin [473J.145] MINNEAPOLIS; CONVENTION CENTER TAX new text end 84.9 new text begin EXTENSION. new text end 84.10 new text begin The taxes under Laws 1986, chapter 396, sections 4 and 5, may be extended by new text end 84.11 new text begin order of the commissioner of management and budget beyond the 2047 sunset specified new text end 84.12 new text begin under article 4, as an additional source of revenue for repayment of the bonds sold under new text end 84.13 new text begin article 2. Any revenues collected from the extension of these taxes through 2048, 2049, new text end 84.14 new text begin and 2050 are appropriated to the commissioner of management and budget for repayment new text end 84.15 new text begin of the bonds sold by the state under article 2. new text end 84.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective pursuant to the authority granted new text end 84.17 new text begin under section 1, on the day following final enactment. new text end