<a id="pl.1.3"></a><var>1.3</var>Minnesota; establishing a Minnesota Stadium Authority; authorizing the sale <br/>
<a id="pl.1.4"></a><var>1.4</var>and issuance of state appropriation bonds; abolishing the Metropolitan Sports <br/>
<a id="pl.1.5"></a><var>1.5</var>Facilities Commission; providing for use of certain local tax revenue; providing <br/>
<a id="pl.1.6"></a><var>1.6</var>for electronic pull-tab games, electronic linked bingo games, and sports-themed <br/>
<a id="pl.1.7"></a><var>1.7</var>tipboard games; providing for the conditional imposition of certain taxes and <br/>
<a id="pl.1.8"></a><var>1.8</var>collection of other revenues; modifying certain rates of tax on lawful gambling; <br/>
<a id="pl.1.9"></a><var>1.9</var>appropriating money;amending Minnesota Statutes 2010, sections 3.971, <br/>
<a id="pl.1.10"></a><var>1.10</var>subdivision 6; 3.9741, by adding a subdivision; 13.55, subdivision 1; 297E.01, <br/>
<a id="pl.1.11"></a><var>1.11</var>subdivisions 7, 8, 9; 297E.02, subdivisions 1, 3, 6, 7, 10, 11, by adding a <br/>
<a id="pl.1.12"></a><var>1.12</var>subdivision; 297E.13, subdivision 5; 349.12, subdivisions 3b, 3c, 5, 6a, 12a, <br/>
<a id="pl.1.13"></a><var>1.13</var>18, 25, 25b, 25c, 25d, 29, 31, 32, 34, 35, by adding subdivisions; 349.13; <br/>
<a id="pl.1.14"></a><var>1.14</var>349.151, subdivisions 4b, 4c, by adding subdivisions; 349.155, subdivisions 3, 4; <br/>
<a id="pl.1.15"></a><var>1.15</var>349.161, subdivisions 1, 5; 349.162, subdivision 5; 349.163, subdivisions 1, 5, 6; <br/>
<a id="pl.1.16"></a><var>1.16</var>349.1635, subdivisions 2, 3, by adding a subdivision; 349.165, subdivision 2; <br/>
<a id="pl.1.17"></a><var>1.17</var>349.17, subdivisions 6, 7, 8, by adding a subdivision; 349.1711, subdivisions 1, <br/>
<a id="pl.1.18"></a><var>1.18</var>2; 349.1721; 349.18, subdivision 1; 349.19, subdivisions 2, 3, 5, 10; 349.211, <br/>
<a id="pl.1.19"></a><var>1.19</var>subdivisions 1a, 2c; 352.01, subdivision 2a; 473.121, subdivision 5a; 473.164; <br/>
<a id="pl.1.20"></a><var>1.20</var>473.565, subdivision 1; Minnesota Statutes 2011 Supplement, sections 10A.01, <br/>
<a id="pl.1.21"></a><var>1.21</var>subdivision 35; 340A.404, subdivision 1; 473.757, subdivision 11; Laws 1986, <br/>
<a id="pl.1.22"></a><var>1.22</var>chapter 396, sections 4, as amended; 5, as amended; proposing coding for new <br/>
<a id="pl.1.23"></a><var>1.23</var>law in Minnesota Statutes, chapters 16A; 297A; 349A; proposing coding for new <br/>
<a id="pl.1.24"></a><var>1.24</var>law as Minnesota Statutes, chapter 473J; repealing Minnesota Statutes 2010, <br/>
<a id="pl.1.25"></a><var>1.25</var>sections 297E.02, subdivision 4; 349.15, subdivision 3; 349.19, subdivision <br/>
<a id="pl.1.26"></a><var>1.26</var>2a; 473.551; 473.552; 473.553, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, <br/>
<a id="pl.1.27"></a><var>1.27</var>13; 473.556, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 16, 17; <br/>
<a id="pl.1.28"></a><var>1.28</var>473.561; 473.564, subdivisions 2, 3; 473.572; 473.581; 473.592, subdivision 1; <br/>
<a id="pl.1.29"></a><var>1.29</var>473.595; 473.598; 473.599; 473.76.<br/>
<a id="pl.1.30"></a><var>1.30</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.1.0.0"></a>

<a id="bill.1.1.0"></a><a id="pl.1.33"></a><var>1.33</var>    Section 1. Minnesota Statutes 2010, section 3.971, subdivision 6, is amended to read:<br/>
<a id="pl.2.1"></a><var>2.1</var>    Subd. 6. <b>Financial audits.</b> The legislative auditor shall audit the financial <br/>
<a id="pl.2.2"></a><var>2.2</var>statements of the state of Minnesota required by section 
         <statute_ref>16A.50</statute_ref> and, as resources permit, <br/>
<a id="pl.2.3"></a><var>2.3</var>shall audit Minnesota State Colleges and Universities, the University of Minnesota, state <br/>
<a id="pl.2.4"></a><var>2.4</var>agencies, departments, boards, commissions, courts, and other state organizations subject <br/>
<a id="pl.2.5"></a><var>2.5</var>to audit by the legislative auditor, including the State Agricultural Society, Agricultural <br/>
<a id="pl.2.6"></a><var>2.6</var>Utilization Research Institute, Enterprise Minnesota, Inc., Minnesota Historical <br/>
<a id="pl.2.7"></a><var>2.7</var>Society, Labor Interpretive Center, Minnesota Partnership for Action Against Tobacco, <br/>
<a id="pl.2.8"></a><var>2.8</var>Metropolitan Sports Facilities Commission, Minnesota Stadium Authority, Metropolitan <br/>
<a id="pl.2.9"></a><var>2.9</var>Airports Commission, and Metropolitan Mosquito Control District. Financial audits <br/>
<a id="pl.2.10"></a><var>2.10</var>must be conducted according to generally accepted government auditing standards. The <br/>
<a id="pl.2.11"></a><var>2.11</var>legislative auditor shall see that all provisions of law respecting the appropriate and <br/>
<a id="pl.2.12"></a><var>2.12</var>economic use of public funds are complied with and may, as part of a financial audit or <br/>
<a id="pl.2.13"></a><var>2.13</var>separately, investigate allegations of noncompliance.<br/>
<br/>
<a id="bill.1.2.0"></a><a id="pl.2.14"></a><var>2.14</var>    Sec. 2. Minnesota Statutes 2010, section 3.9741, is amended by adding a subdivision <br/>
<a id="pl.2.15"></a><var>2.15</var>to read:<br/>
<a id="pl.2.16"></a><var>2.16</var>    Subd. 4. <b>Minnesota Stadium Authority.</b> Upon the audit of the financial accounts <br/>
<a id="pl.2.17"></a><var>2.17</var>and affairs of the Minnesota Stadium Authority, the authority is liable to the state for the <br/>
<a id="pl.2.18"></a><var>2.18</var>total cost and expenses of the audit, including the salaries paid to the examiners while <br/>
<a id="pl.2.19"></a><var>2.19</var>actually engaged in making the examination. The legislative auditor may bill the authority <br/>
<a id="pl.2.20"></a><var>2.20</var>either monthly or at the completion of the audit. All collections received for the audits <br/>
<a id="pl.2.21"></a><var>2.21</var>must be deposited in the general fund.<br/>
<br/>
<a id="bill.1.3.0"></a><a id="pl.2.22"></a><var>2.22</var>    Sec. 3. Minnesota Statutes 2011 Supplement, section 10A.01, subdivision 35, is <br/>
<a id="pl.2.23"></a><var>2.23</var>amended to read:<br/>
<a id="pl.2.24"></a><var>2.24</var>    Subd. 35. <b>Public official.</b> "Public official" means any:<br/>
<a id="pl.2.25"></a><var>2.25</var>    (1) member of the legislature;<br/>
<a id="pl.2.26"></a><var>2.26</var>    (2) individual employed by the legislature as secretary of the senate, legislative <br/>
<a id="pl.2.27"></a><var>2.27</var>auditor, chief clerk of the house of representatives, revisor of statutes, or researcher, <br/>
<a id="pl.2.28"></a><var>2.28</var>legislative analyst, or attorney in the Office of Senate Counsel and Research or House <br/>
<a id="pl.2.29"></a><var>2.29</var>Research;<br/>
<a id="pl.2.30"></a><var>2.30</var>    (3) constitutional officer in the executive branch and the officer's chief administrative <br/>
<a id="pl.2.31"></a><var>2.31</var>deputy;<br/>
<a id="pl.2.32"></a><var>2.32</var>    (4) solicitor general or deputy, assistant, or special assistant attorney general;<br/>
<a id="pl.3.1"></a><var>3.1</var>    (5) commissioner, deputy commissioner, or assistant commissioner of any state <br/>
<a id="pl.3.2"></a><var>3.2</var>department or agency as listed in section 
         <statute_ref>15.01</statute_ref> or 
         <statute_ref>15.06</statute_ref>, or the state chief information <br/>
<a id="pl.3.3"></a><var>3.3</var>officer;<br/>
<a id="pl.3.4"></a><var>3.4</var>    (6) member, chief administrative officer, or deputy chief administrative officer of a <br/>
<a id="pl.3.5"></a><var>3.5</var>state board or commission that has either the power to adopt, amend, or repeal rules under <br/>
<a id="pl.3.6"></a><var>3.6</var>chapter 14, or the power to adjudicate contested cases or appeals under chapter 14;<br/>
<a id="pl.3.7"></a><var>3.7</var>    (7) individual employed in the executive branch who is authorized to adopt, amend, <br/>
<a id="pl.3.8"></a><var>3.8</var>or repeal rules under chapter 14 or adjudicate contested cases under chapter 14;<br/>
<a id="pl.3.9"></a><var>3.9</var>    (8) executive director of the State Board of Investment;<br/>
<a id="pl.3.10"></a><var>3.10</var>    (9) deputy of any official listed in clauses (7) and (8);<br/>
<a id="pl.3.11"></a><var>3.11</var>    (10) judge of the Workers' Compensation Court of Appeals;<br/>
<a id="pl.3.12"></a><var>3.12</var>    (11) administrative law judge or compensation judge in the State Office of <br/>
<a id="pl.3.13"></a><var>3.13</var>Administrative Hearings or unemployment law judge in the Department of Employment <br/>
<a id="pl.3.14"></a><var>3.14</var>and Economic Development;<br/>
<a id="pl.3.15"></a><var>3.15</var>    (12) member, regional administrator, division director, general counsel, or operations <br/>
<a id="pl.3.16"></a><var>3.16</var>manager of the Metropolitan Council;<br/>
<a id="pl.3.17"></a><var>3.17</var>    (13) member or chief administrator of a metropolitan agency;<br/>
<a id="pl.3.18"></a><var>3.18</var>    (14) director of the Division of Alcohol and Gambling Enforcement in the <br/>
<a id="pl.3.19"></a><var>3.19</var>Department of Public Safety;<br/>
<a id="pl.3.20"></a><var>3.20</var>    (15) member or executive director of the Higher Education Facilities Authority;<br/>
<a id="pl.3.21"></a><var>3.21</var>    (16) member of the board of directors or president of Enterprise Minnesota, Inc.;<br/>
<a id="pl.3.22"></a><var>3.22</var>    (17) member of the board of directors or executive director of the Minnesota State <br/>
<a id="pl.3.23"></a><var>3.23</var>High School League;<br/>
<a id="pl.3.24"></a><var>3.24</var>    (18) member of the Minnesota Ballpark Authority established in section 
         <statute_ref>473.755</statute_ref>;<br/>
<a id="pl.3.25"></a><var>3.25</var>    (19) citizen member of the Legislative-Citizen Commission on Minnesota Resources;<br/>
<a id="pl.3.26"></a><var>3.26</var>    (20) manager of a watershed district, or member of a watershed management <br/>
<a id="pl.3.27"></a><var>3.27</var>organization as defined under section 
         <statute_ref>103B.205, subdivision 13</statute_ref>;<br/>
<a id="pl.3.28"></a><var>3.28</var>    (21) supervisor of a soil and water conservation district;<br/>
<a id="pl.3.29"></a><var>3.29</var>(22) director of Explore Minnesota Tourism;<br/>
<a id="pl.3.30"></a><var>3.30</var>    (23) citizen member of the Lessard-Sams Outdoor Heritage Council established in <br/>
<a id="pl.3.31"></a><var>3.31</var>section 97A.056; or<br/>
<a id="pl.3.32"></a><var>3.32</var>(24) a citizen member of the Clean Water Council established in section 
         <statute_ref>114D.30</statute_ref>.; or<br/>
<a id="pl.3.33"></a><var>3.33</var>(25) member or chief executive of the Minnesota Stadium Authority established <br/>
<a id="pl.3.34"></a><var>3.34</var>in section 473J.07.<br/>
<br/>
<a id="bill.1.4.0"></a><a id="pl.4.1"></a><var>4.1</var>    Sec. 4. Minnesota Statutes 2011 Supplement, section 340A.404, subdivision 1, is <br/>
<a id="pl.4.2"></a><var>4.2</var>amended to read:<br/>
<a id="pl.4.3"></a><var>4.3</var>    Subdivision 1. <b>Cities.</b> (a) A city may issue an on-sale intoxicating liquor license to <br/>
<a id="pl.4.4"></a><var>4.4</var>the following establishments located within its jurisdiction:<br/>
<a id="pl.4.5"></a><var>4.5</var>(1) hotels;<br/>
<a id="pl.4.6"></a><var>4.6</var>(2) restaurants;<br/>
<a id="pl.4.7"></a><var>4.7</var>(3) bowling centers;<br/>
<a id="pl.4.8"></a><var>4.8</var>(4) clubs or congressionally chartered veterans organizations with the approval of <br/>
<a id="pl.4.9"></a><var>4.9</var>the commissioner, provided that the organization has been in existence for at least three <br/>
<a id="pl.4.10"></a><var>4.10</var>years and liquor sales will only be to members and bona fide guests, except that a club <br/>
<a id="pl.4.11"></a><var>4.11</var>may permit the general public to participate in a wine tasting conducted at the club under <br/>
<a id="pl.4.12"></a><var>4.12</var>section 
         <statute_ref>340A.419</statute_ref>;<br/>
<a id="pl.4.13"></a><var>4.13</var>(5) sports facilities, restaurants, clubs, or bars located on land owned or leased by <br/>
<a id="pl.4.14"></a><var>4.14</var>the Minnesota Stadium Authority;<br/>
<a id="pl.4.15"></a><var>4.15</var>(5) (6) sports facilities located on land owned by the Metropolitan Sports <br/>
<a id="pl.4.16"></a><var>4.16</var>Commission; and<br/>
<a id="pl.4.17"></a><var>4.17</var>(6) (7) exclusive liquor stores.<br/>
<a id="pl.4.18"></a><var>4.18</var>(b) A city may issue an on-sale intoxicating liquor license, an on-sale wine license, <br/>
<a id="pl.4.19"></a><var>4.19</var>or an on-sale malt liquor license to a theater within the city, notwithstanding any law, local <br/>
<a id="pl.4.20"></a><var>4.20</var>ordinance, or charter provision. A license issued under this paragraph authorizes sales on <br/>
<a id="pl.4.21"></a><var>4.21</var>all days of the week to persons attending events at the theater.<br/>
<a id="pl.4.22"></a><var>4.22</var>(c) A city may issue an on-sale intoxicating liquor license, an on-sale wine license, <br/>
<a id="pl.4.23"></a><var>4.23</var>or an on-sale malt liquor license to a convention center within the city, notwithstanding <br/>
<a id="pl.4.24"></a><var>4.24</var>any law, local ordinance, or charter provision. A license issued under this paragraph <br/>
<a id="pl.4.25"></a><var>4.25</var>authorizes sales on all days of the week to persons attending events at the convention <br/>
<a id="pl.4.26"></a><var>4.26</var>center. This paragraph does not apply to convention centers located in the seven-county <br/>
<a id="pl.4.27"></a><var>4.27</var>metropolitan area.<br/>
<a id="pl.4.28"></a><var>4.28</var>(d) A city may issue an on-sale wine license and an on-sale malt liquor license to <br/>
<a id="pl.4.29"></a><var>4.29</var>a person who is the owner of a summer collegiate league baseball team, or to a person <br/>
<a id="pl.4.30"></a><var>4.30</var>holding a concessions or management contract with the owner, for beverage sales at a <br/>
<a id="pl.4.31"></a><var>4.31</var>ballpark or stadium located within the city for the purposes of summer collegiate league <br/>
<a id="pl.4.32"></a><var>4.32</var>baseball games at the ballpark or stadium, notwithstanding any law, local ordinance, or <br/>
<a id="pl.4.33"></a><var>4.33</var>charter provision. A license issued under this paragraph authorizes sales on all days of the <br/>
<a id="pl.4.34"></a><var>4.34</var>week to persons attending baseball games at the ballpark or stadium.<br/>
<br/>
<a id="bill.1.5.0"></a><a id="pl.4.35"></a><var>4.35</var>    Sec. 5. Minnesota Statutes 2010, section 352.01, subdivision 2a, is amended to read:<br/>
<a id="pl.5.1"></a><var>5.1</var>    Subd. 2a. <b>Included employees.</b> (a) "State employee" includes:<br/>
<a id="pl.5.2"></a><var>5.2</var>    (1) employees of the Minnesota Historical Society;<br/>
<a id="pl.5.3"></a><var>5.3</var>    (2) employees of the State Horticultural Society;<br/>
<a id="pl.5.4"></a><var>5.4</var>    (3) employees of the Minnesota Crop Improvement Association;<br/>
<a id="pl.5.5"></a><var>5.5</var>    (4) employees of the adjutant general whose salaries are paid from federal funds and <br/>
<a id="pl.5.6"></a><var>5.6</var>who are not covered by any federal civilian employees retirement system;<br/>
<a id="pl.5.7"></a><var>5.7</var>    (5) employees of the Minnesota State Colleges and Universities who are employed <br/>
<a id="pl.5.8"></a><var>5.8</var>under the university or college activities program;<br/>
<a id="pl.5.9"></a><var>5.9</var>    (6) currently contributing employees covered by the system who are temporarily <br/>
<a id="pl.5.10"></a><var>5.10</var>employed by the legislature during a legislative session or any currently contributing <br/>
<a id="pl.5.11"></a><var>5.11</var>employee employed for any special service as defined in subdivision 2b, clause (8);<br/>
<a id="pl.5.12"></a><var>5.12</var>    (7) employees of the legislature who are appointed without a limit on the duration <br/>
<a id="pl.5.13"></a><var>5.13</var>of their employment and persons employed or designated by the legislature or by a <br/>
<a id="pl.5.14"></a><var>5.14</var>legislative committee or commission or other competent authority to conduct a special <br/>
<a id="pl.5.15"></a><var>5.15</var>inquiry, investigation, examination, or installation;<br/>
<a id="pl.5.16"></a><var>5.16</var>    (8) trainees who are employed on a full-time established training program <br/>
<a id="pl.5.17"></a><var>5.17</var>performing the duties of the classified position for which they will be eligible to receive <br/>
<a id="pl.5.18"></a><var>5.18</var>immediate appointment at the completion of the training period;<br/>
<a id="pl.5.19"></a><var>5.19</var>    (9) employees of the Minnesota Safety Council;<br/>
<a id="pl.5.20"></a><var>5.20</var>    (10) any employees who are on authorized leave of absence from the Transit <br/>
<a id="pl.5.21"></a><var>5.21</var>Operating Division of the former Metropolitan Transit Commission and who are employed <br/>
<a id="pl.5.22"></a><var>5.22</var>by the labor organization which is the exclusive bargaining agent representing employees <br/>
<a id="pl.5.23"></a><var>5.23</var>of the Transit Operating Division;<br/>
<a id="pl.5.24"></a><var>5.24</var>    (11) employees of the Metropolitan Council, Metropolitan Parks and Open Space <br/>
<a id="pl.5.25"></a><var>5.25</var>Commission, Metropolitan Sports Facilities Commission, or Metropolitan Mosquito <br/>
<a id="pl.5.26"></a><var>5.26</var>Control Commission unless excluded under subdivision 2b or are covered by another <br/>
<a id="pl.5.27"></a><var>5.27</var>public pension fund or plan under section 
         <statute_ref>473.415, subdivision 3</statute_ref>;<br/>
<a id="pl.5.28"></a><var>5.28</var>    (12) judges of the Tax Court;<br/>
<a id="pl.5.29"></a><var>5.29</var>    (13) personnel who were employed on June 30, 1992, by the University of <br/>
<a id="pl.5.30"></a><var>5.30</var>Minnesota in the management, operation, or maintenance of its heating plant facilities, <br/>
<a id="pl.5.31"></a><var>5.31</var>whose employment transfers to an employer assuming operation of the heating plant <br/>
<a id="pl.5.32"></a><var>5.32</var>facilities, so long as the person is employed at the University of Minnesota heating plant <br/>
<a id="pl.5.33"></a><var>5.33</var>by that employer or by its successor organization;<br/>
<a id="pl.5.34"></a><var>5.34</var>    (14) personnel who are employed as seasonal employees in the classified or <br/>
<a id="pl.5.35"></a><var>5.35</var>unclassified service;<br/>
<a id="pl.6.1"></a><var>6.1</var>    (15) persons who are employed by the Department of Commerce as a peace officer <br/>
<a id="pl.6.2"></a><var>6.2</var>in the Insurance Fraud Prevention Division under section 
         <statute_ref>45.0135</statute_ref> who have attained the <br/>
<a id="pl.6.3"></a><var>6.3</var>mandatory retirement age specified in section 
         <statute_ref>43A.34, subdivision 4</statute_ref>;<br/>
<a id="pl.6.4"></a><var>6.4</var>    (16) employees of the University of Minnesota unless excluded under subdivision <br/>
<a id="pl.6.5"></a><var>6.5</var>2b, clause (3);<br/>
<a id="pl.6.6"></a><var>6.6</var>    (17) employees of the Middle Management Association whose employment began <br/>
<a id="pl.6.7"></a><var>6.7</var>after July 1, 2007, and to whom section 
         <statute_ref>352.029</statute_ref> does not apply; and<br/>
<a id="pl.6.8"></a><var>6.8</var>    (18) employees of the Minnesota Government Engineers Council to whom section <br/>
<statute_ref><a id="pl.6.9"></a><var>6.9</var>352.029
         </statute_ref> does not apply.; and<br/>
<a id="pl.6.10"></a><var>6.10</var>(19) employees of the Minnesota Stadium Authority.<br/>
<a id="pl.6.11"></a><var>6.11</var>    (b) Employees specified in paragraph (a), clause (13), are included employees under <br/>
<a id="pl.6.12"></a><var>6.12</var>paragraph (a) if employer and employee contributions are made in a timely manner in the <br/>
<a id="pl.6.13"></a><var>6.13</var>amounts required by section 
         <statute_ref>352.04</statute_ref>. Employee contributions must be deducted from <br/>
<a id="pl.6.14"></a><var>6.14</var>salary. Employer contributions are the sole obligation of the employer assuming operation <br/>
<a id="pl.6.15"></a><var>6.15</var>of the University of Minnesota heating plant facilities or any successor organizations to <br/>
<a id="pl.6.16"></a><var>6.16</var>that employer.<br/>
<br/>
<a id="bill.1.6.0"></a><a id="pl.6.17"></a><var>6.17</var>    Sec. 6. <b>[473J.01] PURPOSE.</b><br/>
<a id="pl.6.18"></a><var>6.18</var>The purpose of this chapter is to provide for the construction, financing, and <br/>
<a id="pl.6.19"></a><var>6.19</var>long-term use of a stadium and related stadium infrastructure as a venue for professional <br/>
<a id="pl.6.20"></a><var>6.20</var>football and a broad range of other civic, community, athletic, educational, cultural, <br/>
<a id="pl.6.21"></a><var>6.21</var>and commercial activities. The legislature finds and declares that the expenditure of <br/>
<a id="pl.6.22"></a><var>6.22</var>public money for this purpose is necessary and serves a public purpose, and that property <br/>
<a id="pl.6.23"></a><var>6.23</var>acquired by the Minnesota Stadium Authority for the construction of the stadium and <br/>
<a id="pl.6.24"></a><var>6.24</var>related stadium infrastructure is acquired for a public use or public purpose under chapter <br/>
<a id="pl.6.25"></a><var>6.25</var>117. The legislature further finds and declares that any provision in a lease or use <br/>
<a id="pl.6.26"></a><var>6.26</var>agreement with a professional football team that requires the team to play all of its home <br/>
<a id="pl.6.27"></a><var>6.27</var>games in a publicly funded stadium for the duration of the lease or use agreement, with the <br/>
<a id="pl.6.28"></a><var>6.28</var>occasional exception of a game played elsewhere as set forth in such agreement, serves <br/>
<a id="pl.6.29"></a><var>6.29</var>a unique public purpose for which the remedies of specific performance and injunctive <br/>
<a id="pl.6.30"></a><var>6.30</var>relief are essential to its enforcement. The legislature further finds and declares that <br/>
<a id="pl.6.31"></a><var>6.31</var>government assistance to facilitate the presence of professional football provides to the <br/>
<a id="pl.6.32"></a><var>6.32</var>state of Minnesota and its citizens highly valued intangible benefits that are virtually <br/>
<a id="pl.6.33"></a><var>6.33</var>impossible to quantify and, therefore, not recoverable even if the government receives <br/>
<a id="pl.6.34"></a><var>6.34</var>monetary damages in the event of a team's breach of contract. Minnesota courts are, <br/>
<a id="pl.7.1"></a><var>7.1</var>therefore, charged with protecting those benefits through the use of specific performance <br/>
<a id="pl.7.2"></a><var>7.2</var>and injunctive relief as provided in this chapter and in the lease and use agreements.<br/>
<br/>
<a id="bill.1.7.0"></a><a id="pl.7.3"></a><var>7.3</var>    Sec. 7. <b>[473J.03] DEFINITIONS.</b><br/>
<a id="pl.7.4"></a><var>7.4</var>    Subdivision 1. <b>Application.</b>  For the purposes of this chapter, the terms defined in <br/>
<a id="pl.7.5"></a><var>7.5</var>this section have the meanings given them, except as otherwise expressly provided or <br/>
<a id="pl.7.6"></a><var>7.6</var>indicated by the context.<br/>
<a id="pl.7.7"></a><var>7.7</var>    Subd. 2. <b>Annual adjustment factor.</b> "Annual adjustment factor" means the annual <br/>
<a id="pl.7.8"></a><var>7.8</var>adjustment factor under section 297A.994, subdivision 4, paragraph (b).<br/>
<a id="pl.7.9"></a><var>7.9</var>    Subd. 3. <b>Authority.</b>  "Authority" means the Minnesota Stadium Authority <br/>
<a id="pl.7.10"></a><var>7.10</var>established under section 473J.07.<br/>
<a id="pl.7.11"></a><var>7.11</var>    Subd. 4. <b>City.</b>  "City" means the city of Minneapolis.<br/>
<a id="pl.7.12"></a><var>7.12</var>    Subd. 5. <b>NFL.</b> The "NFL" means the National Football League.<br/>
<a id="pl.7.13"></a><var>7.13</var>    Subd. 6. <b>NFL team.</b>  "NFL team" means the owner and operator of the NFL <br/>
<a id="pl.7.14"></a><var>7.14</var>professional football team known, as of the effective date of this chapter, as the Minnesota <br/>
<a id="pl.7.15"></a><var>7.15</var>Vikings or any team owned and operated by someone who purchases or otherwise takes <br/>
<a id="pl.7.16"></a><var>7.16</var>ownership or control of or reconstitutes the NFL team known as the Minnesota Vikings.<br/>
<a id="pl.7.17"></a><var>7.17</var>    Subd. 7. <b>Stadium.</b> "Stadium" means the stadium suitable for professional football <br/>
<a id="pl.7.18"></a><var>7.18</var>to be designed, constructed, and financed under this chapter. A stadium must have a roof <br/>
<a id="pl.7.19"></a><var>7.19</var>that covers the stadium, as set forth in section 473J.11, subdivision 3.<br/>
<a id="pl.7.20"></a><var>7.20</var>    Subd. 8. <b>Stadium costs.</b>  "Stadium costs" means the costs of acquiring land, the <br/>
<a id="pl.7.21"></a><var>7.21</var>costs of stadium infrastructure, and of designing, constructing, equipping, and financing a <br/>
<a id="pl.7.22"></a><var>7.22</var>stadium suitable for professional football.<br/>
<a id="pl.7.23"></a><var>7.23</var>    Subd. 9. <b>Stadium infrastructure.</b> "Stadium infrastructure" means plazas, parking <br/>
<a id="pl.7.24"></a><var>7.24</var>structures, rights of way, connectors, skyways and tunnels, and other such property, <br/>
<a id="pl.7.25"></a><var>7.25</var>facilities, and improvements, owned by the authority or determined by the authority to <br/>
<a id="pl.7.26"></a><var>7.26</var>facilitate the use and development of the stadium.<br/>
<a id="pl.7.27"></a><var>7.27</var>    Subd. 10. <b>Stadium site.</b>  "Stadium site" means all or portions of the current site of <br/>
<a id="pl.7.28"></a><var>7.28</var>the existing football stadium and adjacent areas, bounded generally by Park and Eleventh <br/>
<a id="pl.7.29"></a><var>7.29</var>Avenues and Third and Sixth Streets in the city of Minneapolis, the definitive boundaries <br/>
<a id="pl.7.30"></a><var>7.30</var>of which shall be determined by the authority and agreed to by the NFL team.<br/>
<br/>
<a id="bill.1.8.0"></a><a id="pl.7.31"></a><var>7.31</var>    Sec. 8. <b>[473J.07] MINNESOTA STADIUM AUTHORITY.</b><br/>
<a id="pl.7.32"></a><var>7.32</var>    Subdivision 1. <b>Established.</b> The Minnesota Stadium Authority is established as a <br/>
<a id="pl.7.33"></a><var>7.33</var>public body, corporate and politic, and political subdivision of the state. The authority is <br/>
<a id="pl.7.34"></a><var>7.34</var>not a joint powers entity or an agency or instrumentality of the city.<br/>
<a id="pl.8.1"></a><var>8.1</var>    Subd. 2. <b>Membership.</b> (a) The authority shall consist of five members. <br/>
<a id="pl.8.2"></a><var>8.2</var>(b) The chair and two members shall be appointed by the governor. One member <br/>
<a id="pl.8.3"></a><var>8.3</var>appointed by the governor shall serve until December 31 of the third year following <br/>
<a id="pl.8.4"></a><var>8.4</var>appointment and one member shall serve until December 31 of the fourth year following <br/>
<a id="pl.8.5"></a><var>8.5</var>appointment. Thereafter, members appointed by the governor shall serve four-year terms, <br/>
<a id="pl.8.6"></a><var>8.6</var>beginning January 1. Each member serves until a successor is appointed and takes office. <br/>
<a id="pl.8.7"></a><var>8.7</var>The chair serves at the pleasure of the governor. Appointments under this paragraph are <br/>
<a id="pl.8.8"></a><var>8.8</var>subject to the advice and consent of the senate. Senate confirmation shall be as provided <br/>
<a id="pl.8.9"></a><var>8.9</var>by section 15.066.<br/>
<a id="pl.8.10"></a><var>8.10</var>(c) The mayor of the city shall appoint two members to the authority. One member <br/>
<a id="pl.8.11"></a><var>8.11</var>appointed by the mayor of the city shall serve until December 31 of the third year <br/>
<a id="pl.8.12"></a><var>8.12</var>following appointment and one member shall serve until December 31 of the fourth year <br/>
<a id="pl.8.13"></a><var>8.13</var>following appointment. Thereafter, members appointed under this paragraph shall serve <br/>
<a id="pl.8.14"></a><var>8.14</var>four-year terms beginning January 1. Each member serves until a successor is appointed <br/>
<a id="pl.8.15"></a><var>8.15</var>and takes office. Members appointed under this paragraph may reside within the city and <br/>
<a id="pl.8.16"></a><var>8.16</var>may be appointed officials of a political subdivision.<br/>
<a id="pl.8.17"></a><var>8.17</var>(d) The initial members of the authority must be appointed not later than 30 days <br/>
<a id="pl.8.18"></a><var>8.18</var>after the date of enactment of this chapter.<br/>
<a id="pl.8.19"></a><var>8.19</var>    Subd. 3. <b>Compensation.</b> The authority may compensate its members, other than the <br/>
<a id="pl.8.20"></a><var>8.20</var>chair, as provided in section 15.0575. The chair shall receive, unless otherwise provided <br/>
<a id="pl.8.21"></a><var>8.21</var>by other law, a salary in an amount fixed by the authority, and shall be reimbursed for <br/>
<a id="pl.8.22"></a><var>8.22</var>reasonable expenses to the same extent as a member.<br/>
<a id="pl.8.23"></a><var>8.23</var>    Subd. 4. <b>Chair.</b> The chair presides at all meetings of the authority, if present, and <br/>
<a id="pl.8.24"></a><var>8.24</var>performs all other assigned duties and functions. The authority may appoint from among <br/>
<a id="pl.8.25"></a><var>8.25</var>its members a vice-chair to act for the chair during the temporary absence or disability of <br/>
<a id="pl.8.26"></a><var>8.26</var>the chair, and any other officers the authority determines are necessary or convenient.<br/>
<a id="pl.8.27"></a><var>8.27</var>    Subd. 5. <b>Removal.</b>  A member, other than the chair, may be removed by the <br/>
<a id="pl.8.28"></a><var>8.28</var>appointing authority only for misfeasance, malfeasance, or nonfeasance in office, upon <br/>
<a id="pl.8.29"></a><var>8.29</var>written charges, and after an opportunity to be heard in defense of the charges.<br/>
<a id="pl.8.30"></a><var>8.30</var>    Subd. 6. <b>Bylaws.</b> The authority shall adopt bylaws to establish rules of procedure, <br/>
<a id="pl.8.31"></a><var>8.31</var>the powers and duties of its officers, and other matters relating to the governance of the <br/>
<a id="pl.8.32"></a><var>8.32</var>authority and the exercise of its powers. Except as provided in this section, the bylaws <br/>
<a id="pl.8.33"></a><var>8.33</var>adopted under this subdivision must be similar in form and substance to bylaws adopted <br/>
<a id="pl.8.34"></a><var>8.34</var>by the Minnesota Ballpark Authority pursuant to section 473.755.<br/>
<a id="pl.9.1"></a><var>9.1</var>    Subd. 7. <b>Audit.</b> The legislative auditor shall audit the books and accounts of the <br/>
<a id="pl.9.2"></a><var>9.2</var>authority once each year or as often as the legislative auditor's funds and personnel permit. <br/>
<a id="pl.9.3"></a><var>9.3</var>The authority shall pay the total cost of the audit pursuant to section 3.9741.<br/>
<a id="pl.9.4"></a><var>9.4</var>    Subd. 8. <b>Executive director; employees.</b> The authority may appoint an executive <br/>
<a id="pl.9.5"></a><var>9.5</var>director to serve as the chief executive officer of the authority. The executive director <br/>
<a id="pl.9.6"></a><var>9.6</var>serves at the pleasure of the authority and receives compensation as determined by the <br/>
<a id="pl.9.7"></a><var>9.7</var>authority. The executive director may be responsible for the operation, management, and <br/>
<a id="pl.9.8"></a><var>9.8</var>promotion of activities of the authority, as prescribed by the authority. The executive <br/>
<a id="pl.9.9"></a><var>9.9</var>director has the powers necessarily incident to the performance of duties required and <br/>
<a id="pl.9.10"></a><var>9.10</var>powers granted by the authority, but does not have authority to incur liability or make <br/>
<a id="pl.9.11"></a><var>9.11</var>expenditures on behalf of the authority without general or specific directions by the <br/>
<a id="pl.9.12"></a><var>9.12</var>authority, as shown by the bylaws or minutes of a meeting of the authority. The executive <br/>
<a id="pl.9.13"></a><var>9.13</var>director is responsible for hiring, supervision, and dismissal of all other employees of <br/>
<a id="pl.9.14"></a><var>9.14</var>the authority.<br/>
<a id="pl.9.15"></a><var>9.15</var>    Subd. 9. <b>Web site.</b> The authority shall establish a Web site for purposes of providing <br/>
<a id="pl.9.16"></a><var>9.16</var>information to the public concerning all actions taken by the authority. At a minimum, the <br/>
<a id="pl.9.17"></a><var>9.17</var>Web site must contain a current version of the authority's bylaws, notices of upcoming <br/>
<a id="pl.9.18"></a><var>9.18</var>meetings, minutes of the authority's meetings, and contact telephone, electronic mail, and <br/>
<a id="pl.9.19"></a><var>9.19</var>facsimile numbers for public comments.<br/>
<a id="pl.9.20"></a><var>9.20</var>    Subd. 10. <b>Quorum; approvals.</b> Any three members shall constitute a quorum for <br/>
<a id="pl.9.21"></a><var>9.21</var>the conduct of business and action may be taken upon the vote of a majority of members <br/>
<a id="pl.9.22"></a><var>9.22</var>present at a meeting duly called and held. During the design and construction stages of the <br/>
<a id="pl.9.23"></a><var>9.23</var>stadium, a four-fifths vote of the authority is required for authority decisions related to <br/>
<a id="pl.9.24"></a><var>9.24</var>zoning, land use, exterior design of the stadium, related parking, the plaza area, and the <br/>
<a id="pl.9.25"></a><var>9.25</var>selection of the authority's lead representative during design and construction.<br/>
<br/>
<a id="bill.1.9.0"></a><a id="pl.9.26"></a><var>9.26</var>    Sec. 9. <b>[473J.08] LOCATION.</b><br/>
<a id="pl.9.27"></a><var>9.27</var>The stadium to be constructed under this chapter shall be located at the stadium <br/>
<a id="pl.9.28"></a><var>9.28</var>site in the city of Minneapolis. <br/>
<br/>
<a id="bill.1.10.0"></a><a id="pl.9.29"></a><var>9.29</var>    Sec. 10. <b>[473J.09] POWERS, DUTIES OF THE AUTHORITY.</b><br/>
<a id="pl.9.30"></a><var>9.30</var>    Subdivision 1. <b>Actions.</b>  The authority may sue and be sued. The authority is a public <br/>
<a id="pl.9.31"></a><var>9.31</var>body and the stadium and stadium infrastructure are public improvements within the <br/>
<a id="pl.9.32"></a><var>9.32</var>meaning of chapter 562. The authority is a municipality within the meaning of chapter 466.<br/>
<a id="pl.9.33"></a><var>9.33</var>    Subd. 2. <b>Acquisition of property.</b>  The authority may acquire from any public or <br/>
<a id="pl.9.34"></a><var>9.34</var>private entity by lease, purchase, gift, or devise all necessary right, title, and interest in <br/>
<a id="pl.10.1"></a><var>10.1</var>and to real property, air rights, and personal property deemed necessary to the purposes <br/>
<a id="pl.10.2"></a><var>10.2</var>contemplated by this chapter. The authority may acquire, by the exercise of condemnation <br/>
<a id="pl.10.3"></a><var>10.3</var>powers under chapter 117, land, other real property, air rights, personal property, and other <br/>
<a id="pl.10.4"></a><var>10.4</var>right, title, and interest in property, within the stadium site and stadium infrastructure.<br/>
<a id="pl.10.5"></a><var>10.5</var>    Subd. 3. <b>Disposition of property.</b>  The authority may sell, lease, or otherwise <br/>
<a id="pl.10.6"></a><var>10.6</var>dispose of any real or personal property acquired by the authority that is no longer required <br/>
<a id="pl.10.7"></a><var>10.7</var>for accomplishment of the authority's purposes. The property may be sold in accordance <br/>
<a id="pl.10.8"></a><var>10.8</var>with the procedures provided by section 469.065, except subdivisions 6 and 7, to the <br/>
<a id="pl.10.9"></a><var>10.9</var>extent the authority deems it to be practical and consistent with this chapter. Title to the <br/>
<a id="pl.10.10"></a><var>10.10</var>stadium must not be transferred or sold by the authority prior to the effective date of <br/>
<a id="pl.10.11"></a><var>10.11</var>enactment of any legislation approving such transfer or sale.<br/>
<a id="pl.10.12"></a><var>10.12</var>    Subd. 4. <b>Data practices; open meetings.</b>  Except as otherwise provided in this <br/>
<a id="pl.10.13"></a><var>10.13</var>chapter, the authority is subject to chapters 13 and 13D.<br/>
<a id="pl.10.14"></a><var>10.14</var>    Subd. 5. <b>Facility operation.</b> The authority may develop, construct, equip, improve, <br/>
<a id="pl.10.15"></a><var>10.15</var>own, operate, manage, maintain, finance, and control the stadium, stadium infrastructure, <br/>
<a id="pl.10.16"></a><var>10.16</var>and related facilities constructed or acquired under this chapter, or may delegate such <br/>
<a id="pl.10.17"></a><var>10.17</var>duties through an agreement, subject to the rights and obligations transferred to and <br/>
<a id="pl.10.18"></a><var>10.18</var>assumed by the authority, the NFL team, other user, third-party manager, or program <br/>
<a id="pl.10.19"></a><var>10.19</var>manager, under the terms of a lease, use agreement, or development agreement.<br/>
<a id="pl.10.20"></a><var>10.20</var>    Subd. 6. <b>Employees; contracts for services.</b> The authority may employ persons <br/>
<a id="pl.10.21"></a><var>10.21</var>and contract for services necessary to carry out its functions, including the utilization of <br/>
<a id="pl.10.22"></a><var>10.22</var>employees and consultants retained by other governmental entities. The authority shall <br/>
<a id="pl.10.23"></a><var>10.23</var>enter into an agreement with the city regarding traffic control for the stadium.<br/>
<a id="pl.10.24"></a><var>10.24</var>    Subd. 7. <b>Gifts, grants, loans.</b> The authority may accept monetary contributions, <br/>
<a id="pl.10.25"></a><var>10.25</var>property, services, and grants or loans of money or other property from the United States, <br/>
<a id="pl.10.26"></a><var>10.26</var>the state, any subdivision of the state, any agency of those entities, or any person for any <br/>
<a id="pl.10.27"></a><var>10.27</var>of its purposes, and may enter into any agreement required in connection with the gifts, <br/>
<a id="pl.10.28"></a><var>10.28</var>grants, or loans. The authority shall hold, use, and dispose of the money, property, or <br/>
<a id="pl.10.29"></a><var>10.29</var>services according to the terms of the monetary contributions, grant, loan, or agreement.<br/>
<a id="pl.10.30"></a><var>10.30</var>    Subd. 8. <b>Use agreements.</b> The authority may lease, license, or enter into use <br/>
<a id="pl.10.31"></a><var>10.31</var>agreements and may fix, alter, charge, and collect rents, fees, and charges for the use, <br/>
<a id="pl.10.32"></a><var>10.32</var>occupation, and availability of part or all of any premises, property, or facilities under <br/>
<a id="pl.10.33"></a><var>10.33</var>its ownership, operation, or control for purposes that will provide athletic, educational, <br/>
<a id="pl.10.34"></a><var>10.34</var>cultural, commercial, or other entertainment, instruction, or activity for the citizens of <br/>
<a id="pl.10.35"></a><var>10.35</var>Minnesota and visitors. The use agreements may provide that the other contracting party <br/>
<a id="pl.10.36"></a><var>10.36</var>has exclusive use of the premises at the times agreed upon, as well as the right to retain <br/>
<a id="pl.11.1"></a><var>11.1</var>some or all revenues from ticket sales, suite licenses, concessions, advertising, naming <br/>
<a id="pl.11.2"></a><var>11.2</var>rights, NFL team designated broadcast/media, club seats, signage, and other revenues <br/>
<a id="pl.11.3"></a><var>11.3</var>derived from the stadium. The lease or use agreement with an NFL team must provide for <br/>
<a id="pl.11.4"></a><var>11.4</var>the payment by the NFL team of an agreed-upon portion of operating and maintenance <br/>
<a id="pl.11.5"></a><var>11.5</var>costs and expenses and provide other terms in which the authority and NFL team agree. In <br/>
<a id="pl.11.6"></a><var>11.6</var>no case may a lease or use agreement permit smoking in the stadium.<br/>
<a id="pl.11.7"></a><var>11.7</var>    Subd. 9. <b>Research.</b> The authority may conduct research studies and programs; <br/>
<a id="pl.11.8"></a><var>11.8</var>collect and analyze data; prepare reports, maps, charts, and tables; and conduct all <br/>
<a id="pl.11.9"></a><var>11.9</var>necessary hearings and investigations in connection with its functions.<br/>
<a id="pl.11.10"></a><var>11.10</var>    Subd. 10. <b>Insurance.</b> The authority may require any employee to obtain and file <br/>
<a id="pl.11.11"></a><var>11.11</var>with the authority an individual bond or fidelity insurance policy. The authority may <br/>
<a id="pl.11.12"></a><var>11.12</var>procure insurance in the amounts the authority considers necessary against liability of the <br/>
<a id="pl.11.13"></a><var>11.13</var>authority or its officers and employees for personal injury or death and property damage or <br/>
<a id="pl.11.14"></a><var>11.14</var>destruction, consistent with chapter 466, and against risks of damage to or destruction of <br/>
<a id="pl.11.15"></a><var>11.15</var>any of its facilities, equipment, or other property.<br/>
<a id="pl.11.16"></a><var>11.16</var>    Subd. 11. <b>Exemption from Metropolitan Council review; Business Subsidy Act.</b><br/>
<a id="pl.11.17"></a><var>11.17</var>The acquisition and betterment of a stadium and stadium infrastructure by the authority <br/>
<a id="pl.11.18"></a><var>11.18</var>must be conducted pursuant to this chapter and are not subject to sections 473.165 and <br/>
<a id="pl.11.19"></a><var>11.19</var>473.173. Section 116J.994 does not apply to any transactions of the authority or other <br/>
<a id="pl.11.20"></a><var>11.20</var>governmental entity related to the stadium or stadium infrastructure or to any tenant or <br/>
<a id="pl.11.21"></a><var>11.21</var>other users of the stadium or stadium infrastructure.<br/>
<a id="pl.11.22"></a><var>11.22</var>    Subd. 12. <b>Incidental powers.</b> In addition to the powers expressly granted in this <br/>
<a id="pl.11.23"></a><var>11.23</var>chapter, the authority has all powers necessary or incidental thereto.<br/>
<a id="pl.11.24"></a><var>11.24</var>    Subd. 13. <b>Transfers to the authority.</b> In addition to any other payments required <br/>
<a id="pl.11.25"></a><var>11.25</var>under this act, for operating years 2016 to 2020, the NFL team shall annually transfer to <br/>
<a id="pl.11.26"></a><var>11.26</var>the authority amounts equal to the city of Minneapolis share of operating costs and capital <br/>
<a id="pl.11.27"></a><var>11.27</var>reserves. These amounts shall be repaid to the NFL team by the state on behalf of the city <br/>
<a id="pl.11.28"></a><var>11.28</var>of Minneapolis through a repayment schedule to be specified in law, and agreed to in all <br/>
<a id="pl.11.29"></a><var>11.29</var>subsequent agreements between the city and the NFL team.<br/>
<br/>
<a id="bill.1.11.0"></a><a id="pl.11.30"></a><var>11.30</var>    Sec. 11. <b>[473J.11] STADIUM DESIGN AND CONSTRUCTION.</b><br/>
<a id="pl.11.31"></a><var>11.31</var>    Subdivision 1. <b>Contracts.</b> (a) The design, development, and construction of the <br/>
<a id="pl.11.32"></a><var>11.32</var>stadium shall be a collaborative process between the authority and the NFL team. The <br/>
<a id="pl.11.33"></a><var>11.33</var>authority and the NFL team shall establish a process to reach consensus on key elements <br/>
<a id="pl.11.34"></a><var>11.34</var>of the stadium program and design, development, and construction.<br/>
<a id="pl.11.35"></a><var>11.35</var>(b) Unless the authority and the NFL team agree otherwise:<br/>
<a id="pl.12.1"></a><var>12.1</var>(1) the authority shall create a stadium design and construction group, including <br/>
<a id="pl.12.2"></a><var>12.2</var>representatives of the authority and the NFL team, to manage the design of the stadium <br/>
<a id="pl.12.3"></a><var>12.3</var>and oversee construction;<br/>
<a id="pl.12.4"></a><var>12.4</var>(2) this group shall engage an owner's representative to act on behalf of the group. <br/>
<a id="pl.12.5"></a><var>12.5</var>The cost of the owner's representative shall be a stadium cost; and<br/>
<a id="pl.12.6"></a><var>12.6</var>(3) the authority and the NFL team shall enter into a development administration <br/>
<a id="pl.12.7"></a><var>12.7</var>agreement providing for rights and responsibilities of the authority and the NFL team, the <br/>
<a id="pl.12.8"></a><var>12.8</var>design and construction group, and the owner's representative for design and construction <br/>
<a id="pl.12.9"></a><var>12.9</var>of the stadium, including but not limited to establishment of minimum design standards. <br/>
<a id="pl.12.10"></a><var>12.10</var>This development administration agreement shall provide for binding arbitration in <br/>
<a id="pl.12.11"></a><var>12.11</var>the event that the authority and the NFL team are unable to agree on minimum design <br/>
<a id="pl.12.12"></a><var>12.12</var>standards or other material aspects of the design.<br/>
<a id="pl.12.13"></a><var>12.13</var>(c) The authority may enter into an agreement with the NFL team and any other <br/>
<a id="pl.12.14"></a><var>12.14</var>entity relating to the design, construction, financing, operation, maintenance, and use of <br/>
<a id="pl.12.15"></a><var>12.15</var>the stadium and related facilities and stadium infrastructure. The authority may contract <br/>
<a id="pl.12.16"></a><var>12.16</var>for materials, supplies, and equipment in accordance with section 471.345, except that <br/>
<a id="pl.12.17"></a><var>12.17</var>the authority may employ or contract with persons, firms, or corporations to perform one <br/>
<a id="pl.12.18"></a><var>12.18</var>or more or all of the functions of architect, engineer, construction manager, or program <br/>
<a id="pl.12.19"></a><var>12.19</var>manager with respect to all or any part of the design, construction, financing, operation, <br/>
<a id="pl.12.20"></a><var>12.20</var>maintenance, and use of the stadium and stadium infrastructure under the traditional <br/>
<a id="pl.12.21"></a><var>12.21</var>separate design and build, integrated design-build, construction manager at risk, or <br/>
<a id="pl.12.22"></a><var>12.22</var>public/private partnership (P3) structures, or a combination thereof.<br/>
<a id="pl.12.23"></a><var>12.23</var>(d) The authority and the NFL team shall prepare a request for proposals for one or <br/>
<a id="pl.12.24"></a><var>12.24</var>more of the functions described in paragraph (c). The request must be published in the <br/>
<a id="pl.12.25"></a><var>12.25</var>State Register and shall include, at a minimum, such requirements that are agreed to by <br/>
<a id="pl.12.26"></a><var>12.26</var>the authority and the NFL team. The authority and the NFL team may prequalify offerors <br/>
<a id="pl.12.27"></a><var>12.27</var>by issuing a request for qualifications, in advance of the request for proposals, and select a <br/>
<a id="pl.12.28"></a><var>12.28</var>short list of responsible offerors prior to discussions and evaluations.<br/>
<a id="pl.12.29"></a><var>12.29</var>(e) As provided in the request for proposals, the authority, and the NFL team, may <br/>
<a id="pl.12.30"></a><var>12.30</var>conduct discussions and negotiations with responsible offerors in order to determine <br/>
<a id="pl.12.31"></a><var>12.31</var>which proposal is most advantageous to the authority and the NFL team and to negotiate <br/>
<a id="pl.12.32"></a><var>12.32</var>the terms of an agreement. In conducting discussions, there shall be no disclosure of any <br/>
<a id="pl.12.33"></a><var>12.33</var>information derived from proposals submitted by competing offerors and the content of all <br/>
<a id="pl.12.34"></a><var>12.34</var>proposals is nonpublic data under chapter 13 until such time as a notice to award a contract <br/>
<a id="pl.12.35"></a><var>12.35</var>is given by the authority. The agreement shall be subject to the approval of the NFL team.<br/>
<a id="pl.13.1"></a><var>13.1</var>(f) Prior to the time the authority enters into a construction contract with a <br/>
<a id="pl.13.2"></a><var>13.2</var>construction manager or program manager certifying a maximum price and a completion <br/>
<a id="pl.13.3"></a><var>13.3</var>date as provided in paragraph (h), at the request of the NFL team, the authority may <br/>
<a id="pl.13.4"></a><var>13.4</var>authorize, such authorization not to be unreasonably withheld or delayed, the NFL team <br/>
<a id="pl.13.5"></a><var>13.5</var>to provide for management of the construction of the stadium and related stadium <br/>
<a id="pl.13.6"></a><var>13.6</var>infrastructure, in which event the NFL team must assume the role and responsibilities <br/>
<a id="pl.13.7"></a><var>13.7</var>of the authority for completion of construction in a manner consistent with the agreed <br/>
<a id="pl.13.8"></a><var>13.8</var>minimum design standards and design documents, subject to the terms of this act, <br/>
<a id="pl.13.9"></a><var>13.9</var>including responsibility for cost overruns.<br/>
<a id="pl.13.10"></a><var>13.10</var>(g) The construction manager or program manager may enter into contracts with <br/>
<a id="pl.13.11"></a><var>13.11</var>contractors for labor, materials, supplies, and equipment for the construction of the <br/>
<a id="pl.13.12"></a><var>13.12</var>stadium and related stadium infrastructure through the process of public bidding, except <br/>
<a id="pl.13.13"></a><var>13.13</var>that the construction manager or program manager may, with the consent of the authority <br/>
<a id="pl.13.14"></a><var>13.14</var>or the NFL team if the NFL team has assumed responsibility for construction:<br/>
<a id="pl.13.15"></a><var>13.15</var>(1) narrow the listing of eligible bidders to those which the construction manager <br/>
<a id="pl.13.16"></a><var>13.16</var>or program manager determines to possess sufficient expertise to perform the intended <br/>
<a id="pl.13.17"></a><var>13.17</var>functions;<br/>
<a id="pl.13.18"></a><var>13.18</var>(2) award contracts to the contractors that the construction manager or program <br/>
<a id="pl.13.19"></a><var>13.19</var>manager determines provide the best value under a request for proposals as described in <br/>
<a id="pl.13.20"></a><var>13.20</var>section 16C.28, subdivision 1, paragraphs (a), clause (2), and (c), which are not required <br/>
<a id="pl.13.21"></a><var>13.21</var>to be the lowest responsible bidder; and <br/>
<a id="pl.13.22"></a><var>13.22</var>(3) for work the construction manager or program manager determines to be critical <br/>
<a id="pl.13.23"></a><var>13.23</var>to the completion schedule, award contracts on the basis of competitive proposals, or <br/>
<a id="pl.13.24"></a><var>13.24</var>perform work with its own forces without soliciting competitive bids if the construction <br/>
<a id="pl.13.25"></a><var>13.25</var>manager or program manager provides evidence of competitive pricing. <br/>
<a id="pl.13.26"></a><var>13.26</var>(h) The authority and the NFL team shall require that the construction manager or <br/>
<a id="pl.13.27"></a><var>13.27</var>program manager certify, before the contract is signed, a fixed and stipulated construction <br/>
<a id="pl.13.28"></a><var>13.28</var>price and completion date to the authority and post a performance bond in an amount <br/>
<a id="pl.13.29"></a><var>13.29</var>at least equal to 100 percent of the certified price or such other security satisfactory to <br/>
<a id="pl.13.30"></a><var>13.30</var>the authority, to cover any costs which may be incurred in excess of the certified price <br/>
<a id="pl.13.31"></a><var>13.31</var>including, but not limited to, costs incurred by the authority or loss of revenues resulting <br/>
<a id="pl.13.32"></a><var>13.32</var>from incomplete construction on the completion date. The authority may secure surety <br/>
<a id="pl.13.33"></a><var>13.33</var>bonds as provided in section 574.26, securing payment of just claims in connection with <br/>
<a id="pl.13.34"></a><var>13.34</var>all public work undertaken by the authority. Persons entitled to the protection of the <br/>
<a id="pl.13.35"></a><var>13.35</var>bonds may enforce them as provided in sections 574.28 to 574.32 and are not entitled to a <br/>
<a id="pl.13.36"></a><var>13.36</var>lien on any property of the authority under the provisions of sections 514.01 to 514.16. <br/>
<a id="pl.14.1"></a><var>14.1</var>The construction of the stadium is a project as that term is defined in section 177.42, <br/>
<a id="pl.14.2"></a><var>14.2</var>subdivision 2, and is subject to the prevailing wage law under sections 177.41 to 177.43.<br/>
<a id="pl.14.3"></a><var>14.3</var>    Subd. 2. <b>Changes.</b> Unless otherwise agreed to by the authority and the NFL team, <br/>
<a id="pl.14.4"></a><var>14.4</var>if either party requests an agreed upon change in minimum design standards, and this <br/>
<a id="pl.14.5"></a><var>14.5</var>change is responsible for requiring the project to exceed the stated budget, the requesting <br/>
<a id="pl.14.6"></a><var>14.6</var>party is liable for any cost overruns or associated liabilities.<br/>
<a id="pl.14.7"></a><var>14.7</var>    Subd. 3. <b>Stadium design.</b> The stadium and stadium infrastructure shall be designed <br/>
<a id="pl.14.8"></a><var>14.8</var>and constructed incorporating the following general program and design elements:<br/>
<a id="pl.14.9"></a><var>14.9</var>(1) Unless otherwise agreed to by the authority and the NFL team, the stadium <br/>
<a id="pl.14.10"></a><var>14.10</var>shall comprise approximately 1,500,000 square feet with approximately 65,000 seats, <br/>
<a id="pl.14.11"></a><var>14.11</var>expandable to 72,000, shall meet or exceed NFL program requirements, and include <br/>
<a id="pl.14.12"></a><var>14.12</var>approximately 150 suites and approximately 7,500 club seats or other such components as <br/>
<a id="pl.14.13"></a><var>14.13</var>agreed to by the authority and the NFL team;<br/>
<a id="pl.14.14"></a><var>14.14</var>(2) space for NFL team-related exhibitions and sales, which shall include the <br/>
<a id="pl.14.15"></a><var>14.15</var>following: NFL team museum and Hall of Fame, retail merchandise and gift shop retail <br/>
<a id="pl.14.16"></a><var>14.16</var>venues, and themed concessions and restaurants;<br/>
<a id="pl.14.17"></a><var>14.17</var>(3) year-round space for the NFL team administrative operations, sales, and <br/>
<a id="pl.14.18"></a><var>14.18</var>marketing, including a ticket office, team meeting space, locker, and training rooms;<br/>
<a id="pl.14.19"></a><var>14.19</var>(4) space for administrative offices of the authority;<br/>
<a id="pl.14.20"></a><var>14.20</var>(5) 2,000 parking spaces within one block of the stadium, connected by skyway or <br/>
<a id="pl.14.21"></a><var>14.21</var>tunnel to the stadium, and 500 parking spaces within two blocks of the stadium, with a <br/>
<a id="pl.14.22"></a><var>14.22</var>dedicated walkway on game days;<br/>
<a id="pl.14.23"></a><var>14.23</var>(6) elements sufficient to provide community and civic uses as determined by the <br/>
<a id="pl.14.24"></a><var>14.24</var>authority; and<br/>
<a id="pl.14.25"></a><var>14.25</var>(7) a roof that is fixed or retractable, provided that if the roof is retractable, it is <br/>
<a id="pl.14.26"></a><var>14.26</var>accomplished without any increase to the funding provided by the state or the city.<br/>
<a id="pl.14.27"></a><var>14.27</var>    Subd. 4. <b>Cost overruns, savings.</b> The authority may accept financial obligations <br/>
<a id="pl.14.28"></a><var>14.28</var>relating to cost overruns associated with acquisition of the stadium site, stadium <br/>
<a id="pl.14.29"></a><var>14.29</var>infrastructure, and stadium design, development, and construction, provided that the <br/>
<a id="pl.14.30"></a><var>14.30</var>authority shall not accept responsibility for cost overruns and shall not be responsible for <br/>
<a id="pl.14.31"></a><var>14.31</var>cost overruns if the authority has authorized the NFL team to provide for management <br/>
<a id="pl.14.32"></a><var>14.32</var>of construction of the stadium under section 473J.11, subdivision 1. Cost savings or <br/>
<a id="pl.14.33"></a><var>14.33</var>additional funds obtained by the authority or the NFL team for the stadium or stadium <br/>
<a id="pl.14.34"></a><var>14.34</var>infrastructure may be used first to fund additional stadium or stadium infrastructure, as <br/>
<a id="pl.14.35"></a><var>14.35</var>agreed to by the authority and the NFL team, if any, and then to fund capital reserves.<br/>
<br/>
<a id="bill.1.12.0"></a><a id="pl.15.1"></a><var>15.1</var>    Sec. 12. <b>[473J.112] COMMEMORATIVE BRICKS.</b><br/>
<a id="pl.15.2"></a><var>15.2</var>The authority shall sell commemorative bricks to be displayed at a prominent <br/>
<a id="pl.15.3"></a><var>15.3</var>location in the new stadium, for an amount to be determined by the authority. The <br/>
<a id="pl.15.4"></a><var>15.4</var>authority shall work with the commissioner to ensure that purchase of a brick is a tax <br/>
<a id="pl.15.5"></a><var>15.5</var>deductible donation on the part of the donating person or organization. Funds raised <br/>
<a id="pl.15.6"></a><var>15.6</var>through this section shall be appropriated to the commissioner of management and budget <br/>
<a id="pl.15.7"></a><var>15.7</var>for a grant to the Minnesota Stadium Authority.<br/>
<a id="pl.15.8"></a><var>15.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.13.0"></a><a id="pl.15.9"></a><var>15.9</var>    Sec. 13. <b>[473J.12] EMPLOYMENT.</b><br/>
<a id="pl.15.10"></a><var>15.10</var>    Subdivision 1. <b>Hiring and recruitment.</b> In the design, development, construction, <br/>
<a id="pl.15.11"></a><var>15.11</var>management, operation, maintenance and capital repair, replacement and improvement of <br/>
<a id="pl.15.12"></a><var>15.12</var>the stadium and stadium infrastructure, the authority shall make every effort to employ, <br/>
<a id="pl.15.13"></a><var>15.13</var>and cause the NFL team, the construction manager and other subcontractors, vendors, and <br/>
<a id="pl.15.14"></a><var>15.14</var>concessionaires to employ women and members of minority communities when hiring. <br/>
<a id="pl.15.15"></a><var>15.15</var>Further, goals for construction contracts to be awarded to women- and minority-owned <br/>
<a id="pl.15.16"></a><var>15.16</var>businesses will be in a percentage at least equal to the minimum used for city of <br/>
<a id="pl.15.17"></a><var>15.17</var>Minneapolis development projects, and the other construction workforce will establish <br/>
<a id="pl.15.18"></a><var>15.18</var>workforce utilization goals at least equal to current city goals and include workers from <br/>
<a id="pl.15.19"></a><var>15.19</var>city zip codes that have high rates of poverty and unemployment.<br/>
<a id="pl.15.20"></a><var>15.20</var>    Subd. 2. <b>Other required agreements.</b> The NFL team or the authority shall give <br/>
<a id="pl.15.21"></a><var>15.21</var>food, beverage, retail, and concession workers presently employed by the NFL team or <br/>
<a id="pl.15.22"></a><var>15.22</var>the Metropolitan Sports Facilities Commission or its vendors at the existing football <br/>
<a id="pl.15.23"></a><var>15.23</var>stadium the opportunity to continue their employment in comparable positions at the new <br/>
<a id="pl.15.24"></a><var>15.24</var>stadium. Workers who are presently represented under a collective bargaining agreement <br/>
<a id="pl.15.25"></a><var>15.25</var>may seek to continue such representation in the facility and designate such, or another <br/>
<a id="pl.15.26"></a><var>15.26</var>collective bargaining unit, as their representative.<br/>
<br/>
<a id="bill.1.14.0"></a><a id="pl.15.27"></a><var>15.27</var>    Sec. 14. <b>[473J.13] STADIUM OPERATIONS; CAPITAL IMPROVEMENTS.</b><br/>
<a id="pl.15.28"></a><var>15.28</var>    Subdivision 1. <b>Stadium operation.</b> The stadium shall be operated in a first-class <br/>
<a id="pl.15.29"></a><var>15.29</var>manner, similar to and consistent with other comparable NFL stadiums, such as the <br/>
<a id="pl.15.30"></a><var>15.30</var>stadium currently known as Lucas Oil Field. The authority and the team will mutually <br/>
<a id="pl.15.31"></a><var>15.31</var>agree on a third-party management company or individual to manage the stadium and on <br/>
<a id="pl.15.32"></a><var>15.32</var>certain major vendors to the stadium. The authority, with the approval of the NFL team, <br/>
<a id="pl.15.33"></a><var>15.33</var>may enter into an agreement with a program manager for management of the stadium, for <br/>
<a id="pl.15.34"></a><var>15.34</var>a maximum of 30 years.<br/>
<a id="pl.16.1"></a><var>16.1</var>    Subd. 2. <b>Operating expenses.</b> (a) The authority must pay or cause to be paid <br/>
<a id="pl.16.2"></a><var>16.2</var>all operating expenses of the stadium. The authority must require in the lease or use <br/>
<a id="pl.16.3"></a><var>16.3</var>agreement with the NFL team that the NFL team pay the authority, beginning January 1, <br/>
<a id="pl.16.4"></a><var>16.4</var>2016, or other date as mutually agreed upon by the parties, toward operating costs of the <br/>
<a id="pl.16.5"></a><var>16.5</var>stadium, $8,500,000 each year, increased by a three percent annual inflation rate.<br/>
<a id="pl.16.6"></a><var>16.6</var>(b) Beginning January 1, 2016, or other date as mutually agreed upon by the <br/>
<a id="pl.16.7"></a><var>16.7</var>parties, and continuing through 2020, the NFL team shall pay the authority operating <br/>
<a id="pl.16.8"></a><var>16.8</var>expenses, $6,000,000 each year, increased by an annual adjustment factor. The payment <br/>
<a id="pl.16.9"></a><var>16.9</var>of $6,000,000 per year beginning in 2016 is a payment by the team, which shall be repaid <br/>
<a id="pl.16.10"></a><var>16.10</var>to the team by the state, using funds as provided under section 297A.994, subdivision 4, <br/>
<a id="pl.16.11"></a><var>16.11</var>clause (4). After 2020, the state shall assume this payment, using funds generated in <br/>
<a id="pl.16.12"></a><var>16.12</var>accordance with the city of Minneapolis as specified under section 287A.994.<br/>
<a id="pl.16.13"></a><var>16.13</var>(c) The authority may establish an operating reserve to cover operating expense <br/>
<a id="pl.16.14"></a><var>16.14</var>shortfalls and may accept funds from any source for deposit in the operating reserve. The <br/>
<a id="pl.16.15"></a><var>16.15</var>establishment or funding of an authority operating reserve must not decrease the amounts <br/>
<a id="pl.16.16"></a><var>16.16</var>required to be paid to the authority toward operating costs under this subdivision unless <br/>
<a id="pl.16.17"></a><var>16.17</var>agreed to by the authority.<br/>
<a id="pl.16.18"></a><var>16.18</var>(d) The authority will be responsible for operating cost overruns.<br/>
<a id="pl.16.19"></a><var>16.19</var>(e) After the joint selection of the third-party manager or program manager, the <br/>
<a id="pl.16.20"></a><var>16.20</var>authority may agree with a program manager or other third-party manager of the stadium <br/>
<a id="pl.16.21"></a><var>16.21</var>on a fixed cost operating, management, or employment agreement with operating <br/>
<a id="pl.16.22"></a><var>16.22</var>cost protections under which the program manager or third-party manager assumes <br/>
<a id="pl.16.23"></a><var>16.23</var>responsibility for stadium operating costs and shortfalls. The agreement with the manager <br/>
<a id="pl.16.24"></a><var>16.24</var>must require the manager to prepare an initial and ongoing operating plan and operating <br/>
<a id="pl.16.25"></a><var>16.25</var>budgets for approval by the authority in consultation with the NFL team. The manager <br/>
<a id="pl.16.26"></a><var>16.26</var>must agree to operate the stadium in accordance with the approved operating plan and <br/>
<a id="pl.16.27"></a><var>16.27</var>operating budget.<br/>
<a id="pl.16.28"></a><var>16.28</var>    Subd. 3. <b>Public access.</b> The authority will work to maximize access for public and <br/>
<a id="pl.16.29"></a><var>16.29</var>amateur sports, community, and civic events, and other public events in type and on terms <br/>
<a id="pl.16.30"></a><var>16.30</var>consistent with those currently held at the existing football stadium, as defined in section <br/>
<a id="pl.16.31"></a><var>16.31</var>473.551, subdivision 9. The authority may provide that these events have exclusive use <br/>
<a id="pl.16.32"></a><var>16.32</var>of the premises at agreed-upon times subject to the scheduling rights of the NFL team <br/>
<a id="pl.16.33"></a><var>16.33</var>under the lease or use agreement.<br/>
<a id="pl.16.34"></a><var>16.34</var>    Subd. 4. <b>Capital improvements.</b> (a) The authority shall establish a capital <br/>
<a id="pl.16.35"></a><var>16.35</var>reserve fund. The authority shall be responsible for making, or for causing others to <br/>
<a id="pl.16.36"></a><var>16.36</var>make, all capital repairs, replacements, and improvements for the stadium and stadium <br/>
<a id="pl.17.1"></a><var>17.1</var>infrastructure. The authority shall maintain, or cause others to maintain, the stadium and <br/>
<a id="pl.17.2"></a><var>17.2</var>stadium infrastructure in a safe, clean, attractive, and first-class manner so as to cause <br/>
<a id="pl.17.3"></a><var>17.3</var>them to remain in a condition comparable to that of other comparable NFL facilities of <br/>
<a id="pl.17.4"></a><var>17.4</var>similar design and age. The authority shall make, or cause others to make, all necessary <br/>
<a id="pl.17.5"></a><var>17.5</var>or appropriate repairs, renewals, and replacements, whether structural or nonstructural, <br/>
<a id="pl.17.6"></a><var>17.6</var>interior or exterior, ordinary or extraordinary, foreseen or unforeseen, in a prompt and <br/>
<a id="pl.17.7"></a><var>17.7</var>timely manner. In addition, the authority, with approval of the NFL team, may enter into <br/>
<a id="pl.17.8"></a><var>17.8</var>an agreement with a program manager to perform some or all of the responsibilities of the <br/>
<a id="pl.17.9"></a><var>17.9</var>authority in this subdivision and to assume and accept financial liability for the cost of <br/>
<a id="pl.17.10"></a><var>17.10</var>performing the responsibilities.<br/>
<a id="pl.17.11"></a><var>17.11</var>(b) The NFL team must contribute $1,500,000 each year, beginning in 2016 or as <br/>
<a id="pl.17.12"></a><var>17.12</var>otherwise determined for the term of the lease or use agreement to the operating reserve <br/>
<a id="pl.17.13"></a><var>17.13</var>fund, increased by a three percent annual inflation rate.<br/>
<a id="pl.17.14"></a><var>17.14</var>(c) The state shall contribute $1,500,000 each year, beginning in 2016 or as otherwise <br/>
<a id="pl.17.15"></a><var>17.15</var>determined for the term of the lease to the operating reserve fund. The contributions of the <br/>
<a id="pl.17.16"></a><var>17.16</var>state are subject to increase by an annual adjustment factor. The contribution under this <br/>
<a id="pl.17.17"></a><var>17.17</var>paragraph shall be assumed by the team from 2016 through 2020, and repaid to the team <br/>
<a id="pl.17.18"></a><var>17.18</var>by the state using funds in accordance with section 297A.994, subdivision 4, clause (4).<br/>
<a id="pl.17.19"></a><var>17.19</var>(d) The authority with input from the NFL team shall develop short-term and <br/>
<a id="pl.17.20"></a><var>17.20</var>long-term capital funding plans and shall use those plans to guide the future capital needs <br/>
<a id="pl.17.21"></a><var>17.21</var>of the stadium and stadium infrastructure. The authority shall make the final determination <br/>
<a id="pl.17.22"></a><var>17.22</var>with respect to funding capital needs. Any capital improvement proposed by the NFL <br/>
<a id="pl.17.23"></a><var>17.23</var>team intended primarily to provide revenue enhancements to the NFL team shall be paid <br/>
<a id="pl.17.24"></a><var>17.24</var>for by the NFL team, unless otherwise agreed to with the authority.<br/>
<a id="pl.17.25"></a><var>17.25</var>    Subd. 5. <b>Game-day payments.</b> In addition to operating expense contributions <br/>
<a id="pl.17.26"></a><var>17.26</var>of the NFL team under subdivision 2, the NFL team shall pay all NFL game day, NFL <br/>
<a id="pl.17.27"></a><var>17.27</var>team-owned major league soccer, as provided in section 473J.15, subdivision 15, and <br/>
<a id="pl.17.28"></a><var>17.28</var>other NFL team-sponsored event expenses within the stadium and stadium plaza areas.<br/>
<a id="pl.17.29"></a><var>17.29</var>    Subd. 6. <b>Cooperation with financing.</b> The authority will cooperate with the <br/>
<a id="pl.17.30"></a><var>17.30</var>NFL team to facilitate the financing of the NFL team's contribution. Such agreement to <br/>
<a id="pl.17.31"></a><var>17.31</var>cooperate shall not require the authority to incur any additional costs or provide conduit <br/>
<a id="pl.17.32"></a><var>17.32</var>financing. The lease, license, and other transaction documents shall include provisions <br/>
<a id="pl.17.33"></a><var>17.33</var>customarily required by lenders in stadium financings.<br/>
<br/>
<a id="bill.1.15.0"></a><a id="pl.17.34"></a><var>17.34</var>    Sec. 15. <b>[473J.15] CRITERIA AND CONDITIONS.</b><br/>
<a id="pl.18.1"></a><var>18.1</var>    Subdivision 1. <b>Binding and enforceable.</b> In developing the stadium and entering <br/>
<a id="pl.18.2"></a><var>18.2</var>into related contracts, the authority must follow and enforce the criteria and conditions in <br/>
<a id="pl.18.3"></a><var>18.3</var>this section, provided that a determination by the authority that those criteria or conditions <br/>
<a id="pl.18.4"></a><var>18.4</var>have been met under any agreement or otherwise shall be conclusive.<br/>
<a id="pl.18.5"></a><var>18.5</var>    Subd. 2. <b>NFL team/private contribution; timing of expenditures.</b> (a) The NFL <br/>
<a id="pl.18.6"></a><var>18.6</var>team/private contribution, including stadium builder license proceeds, for stadium costs <br/>
<a id="pl.18.7"></a><var>18.7</var>must be made in cash in the amount of at least $427,000,000.<br/>
<a id="pl.18.8"></a><var>18.8</var>(b) Prior to the initial deposit of funds under this section, the team must provide <br/>
<a id="pl.18.9"></a><var>18.9</var>security or other credit worthiness in the amount of $50,000,000, subject to the satisfaction <br/>
<a id="pl.18.10"></a><var>18.10</var>of the authority. Prior to the first issuance of bonds under section 16A.965, the first portion <br/>
<a id="pl.18.11"></a><var>18.11</var>of the NFL team/private contribution in the amount of $50,000,000 must be deposited as <br/>
<a id="pl.18.12"></a><var>18.12</var>costs are incurred to the construction fund to pay for the initial stadium costs.<br/>
<a id="pl.18.13"></a><var>18.13</var>(c) After the first $50,000,000 of stadium costs have been paid from the initial <br/>
<a id="pl.18.14"></a><var>18.14</var>NFL team/private contribution, state funds shall be deposited as costs are incurred to the <br/>
<a id="pl.18.15"></a><var>18.15</var>construction fund to pay for the next $50,000,000 of costs of the project. Prior to any state <br/>
<a id="pl.18.16"></a><var>18.16</var>funds being deposited in the construction fund, the NFL team must provide security or a <br/>
<a id="pl.18.17"></a><var>18.17</var>financing commitment reasonably satisfactory to the authority for the balance of the <br/>
<a id="pl.18.18"></a><var>18.18</var>required NFL team/private contribution and for payment of cost overruns if the NFL <br/>
<a id="pl.18.19"></a><var>18.19</var>team assumes responsibility for stadium construction under section 473J.11. Thereafter, <br/>
<a id="pl.18.20"></a><var>18.20</var>budgeted project costs shall be borne by the authority and the NFL team/private <br/>
<a id="pl.18.21"></a><var>18.21</var>contributions in amounts proportionate to their remaining funding commitments.<br/>
<a id="pl.18.22"></a><var>18.22</var>(d) In the event the project terminates before the initial $100,000,000 in contributions <br/>
<a id="pl.18.23"></a><var>18.23</var>are expended by the parties under this subdivision, the parties shall be reimbursed in the <br/>
<a id="pl.18.24"></a><var>18.24</var>amounts they have deposited to the construction fund proportionate to project funding <br/>
<a id="pl.18.25"></a><var>18.25</var>percentages, in the amounts of 56 percent by the authority and 44 percent by the NFL <br/>
<a id="pl.18.26"></a><var>18.26</var>team/private contributions.<br/>
<a id="pl.18.27"></a><var>18.27</var>    Subd. 3. <b>Lease or use agreements; 30-year term.</b> The authority must enter into <br/>
<a id="pl.18.28"></a><var>18.28</var>a long-term lease or use agreement with the NFL team for the NFL team's use of the <br/>
<a id="pl.18.29"></a><var>18.29</var>stadium. The NFL team must agree to play all preseason, regular season, and postseason <br/>
<a id="pl.18.30"></a><var>18.30</var>home games at the stadium. Training facilities must remain in Minnesota during the term <br/>
<a id="pl.18.31"></a><var>18.31</var>of the lease or use agreement. The lease or use agreement must be for a term of at least <br/>
<a id="pl.18.32"></a><var>18.32</var>30 years from the date of substantial completion of the stadium for professional football <br/>
<a id="pl.18.33"></a><var>18.33</var>games. The lease or use agreement may provide options for the NFL team to extend the <br/>
<a id="pl.18.34"></a><var>18.34</var>term for up to four additional periods of five years. The lease or use agreement must <br/>
<a id="pl.18.35"></a><var>18.35</var>include terms for default, termination, and breach of the agreement. Recognizing that <br/>
<a id="pl.18.36"></a><var>18.36</var>the presence of professional football provides to the state of Minnesota and its citizens <br/>
<a id="pl.19.1"></a><var>19.1</var>highly valued, intangible benefits that are virtually impossible to quantify and, therefore, <br/>
<a id="pl.19.2"></a><var>19.2</var>not recoverable in the event of the NFL team owner's breach of contract, the lease and <br/>
<a id="pl.19.3"></a><var>19.3</var>use agreements must provide for specific performance and injunctive relief to enforce <br/>
<a id="pl.19.4"></a><var>19.4</var>provisions relating to use of the stadium for professional football and must not include <br/>
<a id="pl.19.5"></a><var>19.5</var>escape clauses or buyout provisions. The NFL team must not enter into or accept any <br/>
<a id="pl.19.6"></a><var>19.6</var>agreement or requirement with or from any entity that is inconsistent with the NFL team's <br/>
<a id="pl.19.7"></a><var>19.7</var>binding commitment to the 30-year term of the lease or use agreement or that would in <br/>
<a id="pl.19.8"></a><var>19.8</var>any manner dilute, interfere with, or negate the provisions of the lease or use agreement, <br/>
<a id="pl.19.9"></a><var>19.9</var>providing for specific performance or injunctive relief. The legislature conclusively <br/>
<a id="pl.19.10"></a><var>19.10</var>determines, as a matter of public policy, that the lease or use agreement, and any grant <br/>
<a id="pl.19.11"></a><var>19.11</var>agreement under this chapter that includes a specific performance clause:<br/>
<a id="pl.19.12"></a><var>19.12</var>(1) explicitly authorizes specific performance as a remedy for breach;<br/>
<a id="pl.19.13"></a><var>19.13</var>(2) is made for adequate consideration and upon terms which are otherwise fair <br/>
<a id="pl.19.14"></a><var>19.14</var>and reasonable;<br/>
<a id="pl.19.15"></a><var>19.15</var>(3) has not been included through sharp practice, misrepresentation, or mistake;<br/>
<a id="pl.19.16"></a><var>19.16</var>(4) if specifically enforced, does not cause unreasonable or disproportionate hardship <br/>
<a id="pl.19.17"></a><var>19.17</var>or loss to the NFL team or to third parties; and<br/>
<a id="pl.19.18"></a><var>19.18</var>(5) involves performance in a manner and the rendering of services of a nature and <br/>
<a id="pl.19.19"></a><var>19.19</var>under circumstances that the beneficiary cannot be adequately compensated in damages.<br/>
<a id="pl.19.20"></a><var>19.20</var>    Subd. 4. <b>Lease or use agreements; revenues, payments.</b> A lease or use agreement <br/>
<a id="pl.19.21"></a><var>19.21</var>shall include rent and other fees and expenses to be paid by the NFL team. The authority <br/>
<a id="pl.19.22"></a><var>19.22</var>shall agree to provide in the lease or use agreement for the NFL team to receive all NFL <br/>
<a id="pl.19.23"></a><var>19.23</var>and team event related revenues, including but not limited to, suite revenues, advertising, <br/>
<a id="pl.19.24"></a><var>19.24</var>concessions, signage, broadcast and media, and club seat revenue. The agreement shall <br/>
<a id="pl.19.25"></a><var>19.25</var>also provide that all naming rights to the stadium are retained by the NFL team, subject to <br/>
<a id="pl.19.26"></a><var>19.26</var>the approval of the name or names by the authority consistent with those criteria set out <br/>
<a id="pl.19.27"></a><var>19.27</var>in the lease or use agreement. The agreement shall provide for the authority to receive <br/>
<a id="pl.19.28"></a><var>19.28</var>all general ticket revenues and other event revenues other than from NFL team games, <br/>
<a id="pl.19.29"></a><var>19.29</var>NFL team-owned major league soccer games, and other NFL team events agreed to by <br/>
<a id="pl.19.30"></a><var>19.30</var>the authority. The stadium authority, or any company managing the stadium facilities on <br/>
<a id="pl.19.31"></a><var>19.31</var>behalf of the authority, shall provide a public notice and seek a formal solicitation for <br/>
<a id="pl.19.32"></a><var>19.32</var>requests for proposals for any contracts for goods, services, sponsorships, or advertising <br/>
<a id="pl.19.33"></a><var>19.33</var>or signage rights at the stadium in excess of $25,000 in accordance with the definitions <br/>
<a id="pl.19.34"></a><var>19.34</var>and terms set forth in chapter 16C, with the stadium authority acting as the responsible <br/>
<a id="pl.19.35"></a><var>19.35</var>authority for seeking any such formal solicitations and awarding any such contracts <br/>
<a id="pl.19.36"></a><var>19.36</var>pursuant to such solicitations.<br/>
<a id="pl.20.1"></a><var>20.1</var>    Subd. 5. <b>Notice of breach or default.</b> Until 30 years from the date of stadium <br/>
<a id="pl.20.2"></a><var>20.2</var>completion, the NFL team must provide written notice to the authority not less than 180 <br/>
<a id="pl.20.3"></a><var>20.3</var>days prior to any action, including any action imposed upon the NFL team by the NFL, <br/>
<a id="pl.20.4"></a><var>20.4</var>which would result in a breach or default of provisions of the lease or use agreements <br/>
<a id="pl.20.5"></a><var>20.5</var>required to be included under subdivision 3. If this notice provision is violated and the <br/>
<a id="pl.20.6"></a><var>20.6</var>NFL team has already breached or been in default under the required provisions, the <br/>
<a id="pl.20.7"></a><var>20.7</var>authority or the state of Minnesota may specifically enforce the lease or use agreement <br/>
<a id="pl.20.8"></a><var>20.8</var>and Minnesota courts shall fashion equitable remedies so that the NFL team fulfills the <br/>
<a id="pl.20.9"></a><var>20.9</var>conditions of the lease and use agreements.<br/>
<a id="pl.20.10"></a><var>20.10</var>    Subd. 6. <b>Enforceable financial commitments.</b> The authority must determine before <br/>
<a id="pl.20.11"></a><var>20.11</var>stadium construction begins that all public and private funding sources for construction, <br/>
<a id="pl.20.12"></a><var>20.12</var>operating expenses, and capital improvements and repairs of the stadium are included in <br/>
<a id="pl.20.13"></a><var>20.13</var>written agreements. The committed funds must be adequate to design, construct, furnish, <br/>
<a id="pl.20.14"></a><var>20.14</var>and equip the stadium, and pay projected operating expenses and the costs of capital <br/>
<a id="pl.20.15"></a><var>20.15</var>improvements and repairs during the term of the lease or use agreement with the NFL <br/>
<a id="pl.20.16"></a><var>20.16</var>team. The NFL team must provide the authority access to NFL team financial or other <br/>
<a id="pl.20.17"></a><var>20.17</var>information, which the authority deems necessary for such determination. Any financial <br/>
<a id="pl.20.18"></a><var>20.18</var>information obtained by the authority under this subdivision is nonpublic data under <br/>
<a id="pl.20.19"></a><var>20.19</var>section 13.02, subdivision 9.<br/>
<a id="pl.20.20"></a><var>20.20</var>    Subd. 7. <b>Environmental requirements.</b> The authority must comply with all <br/>
<a id="pl.20.21"></a><var>20.21</var>environmental requirements imposed by regulatory agencies for the stadium, site, and <br/>
<a id="pl.20.22"></a><var>20.22</var>structure, except as provided by section 473J.09, subdivision 11, or by section 473J.17.<br/>
<a id="pl.20.23"></a><var>20.23</var>    Subd. 8. <b>Public share on sale of NFL team.</b> The lease or use agreement must <br/>
<a id="pl.20.24"></a><var>20.24</var>provide that, if the NFL team is sold or an interest in the NFL team is sold after the <br/>
<a id="pl.20.25"></a><var>20.25</var>effective date of this chapter, a portion of the sale price must be paid to the authority and <br/>
<a id="pl.20.26"></a><var>20.26</var>deposited in a reserve fund for improvements to the stadium or expended as the authority <br/>
<a id="pl.20.27"></a><var>20.27</var>may otherwise direct. The portion required to be so paid to the authority is 18 percent <br/>
<a id="pl.20.28"></a><var>20.28</var>of the amount in excess of the purchase price of the NFL team by the selling owner or <br/>
<a id="pl.20.29"></a><var>20.29</var>owners, declining to zero 15 years after commencement of stadium construction in <br/>
<a id="pl.20.30"></a><var>20.30</var>increments of 1.2 percent each year. The agreement must provide exceptions for sales <br/>
<a id="pl.20.31"></a><var>20.31</var>to members of the owners' family and entities and trusts beneficially owned by family <br/>
<a id="pl.20.32"></a><var>20.32</var>members, sales to employees of equity interests aggregating up to ten percent, sales related <br/>
<a id="pl.20.33"></a><var>20.33</var>to capital infusions not distributed to the owners, and sales amongst existing owners not <br/>
<a id="pl.20.34"></a><var>20.34</var>exceeding 20 percent equity interest in the NFL team.<br/>
<a id="pl.20.35"></a><var>20.35</var>    Subd. 9. <b>Authority's access to NFL team financial information.</b> A notice <br/>
<a id="pl.20.36"></a><var>20.36</var>provision for a material breach shall be agreed to between the authority and the NFL team. <br/>
<a id="pl.21.1"></a><var>21.1</var>In the event there is a material breach by the NFL team under the lease or use agreement, <br/>
<a id="pl.21.2"></a><var>21.2</var>the lease or use agreement must provide the authority access to audited financial statements <br/>
<a id="pl.21.3"></a><var>21.3</var>of the NFL team and other financial information that the authority deems necessary to <br/>
<a id="pl.21.4"></a><var>21.4</var>enforce the terms of any lease or use agreements. Any financial information obtained by <br/>
<a id="pl.21.5"></a><var>21.5</var>the authority under this subdivision is nonpublic data under section 13.02, subdivision 9.<br/>
<a id="pl.21.6"></a><var>21.6</var>    Subd. 10. <b>NFL team name retained.</b> The lease or use agreement must provide <br/>
<a id="pl.21.7"></a><var>21.7</var>that the NFL team and NFL will transfer to the state of Minnesota the Minnesota Vikings' <br/>
<a id="pl.21.8"></a><var>21.8</var>heritage and records, including the name, logo, colors, history, playing records, trophies, <br/>
<a id="pl.21.9"></a><var>21.9</var>and memorabilia in the event of relocation of the NFL team is in violation of the lease <br/>
<a id="pl.21.10"></a><var>21.10</var>or use agreement.<br/>
<a id="pl.21.11"></a><var>21.11</var>    Subd. 11. <b>Stadium design.</b> (a) The authority and the NFL team will strive to build a <br/>
<a id="pl.21.12"></a><var>21.12</var>stadium that is environmentally and energy efficient and will make an effort to build a <br/>
<a id="pl.21.13"></a><var>21.13</var>stadium that is eligible to receive the Leadership in Energy and Environmental Design <br/>
<a id="pl.21.14"></a><var>21.14</var>(LEED) certification for environmental design, and to the extent practicable, will strive to <br/>
<a id="pl.21.15"></a><var>21.15</var>make the stadium design architecturally significant.<br/>
<a id="pl.21.16"></a><var>21.16</var>(b) The stadium design must, to the extent feasible, follow sustainable building <br/>
<a id="pl.21.17"></a><var>21.17</var>guidelines established under section 16B.325.<br/>
<a id="pl.21.18"></a><var>21.18</var>(c) The authority and the team must ensure that the stadium be built with <br/>
<a id="pl.21.19"></a><var>21.19</var>American-made steel that is made from Minnesota iron ore.<br/>
<a id="pl.21.20"></a><var>21.20</var>    Subd. 12. <b>Necessary approvals.</b> The authority and the NFL team must secure <br/>
<a id="pl.21.21"></a><var>21.21</var>any necessary approvals to the terms of the lease and use agreement and the design and <br/>
<a id="pl.21.22"></a><var>21.22</var>construction plans for the stadium, including prior approval of the NFL.<br/>
<a id="pl.21.23"></a><var>21.23</var>    Subd. 13. <b>Affordable access.</b> The lease or use agreement must provide for an <br/>
<a id="pl.21.24"></a><var>21.24</var>agreed-upon number of affordable tickets to the professional sporting events held in the <br/>
<a id="pl.21.25"></a><var>21.25</var>stadium.<br/>
<a id="pl.21.26"></a><var>21.26</var>    Subd. 14. <b>Stadium builder's licenses.</b> The authority shall own and retain the <br/>
<a id="pl.21.27"></a><var>21.27</var>exclusive right to sell stadium builder's licenses in the stadium. The authority will retain <br/>
<a id="pl.21.28"></a><var>21.28</var>the NFL team to act as the authority's agent in marketing and selling such licenses.<br/>
<a id="pl.21.29"></a><var>21.29</var>    Subd. 15. <b>Major league soccer.</b> The authority shall, for five years after the first <br/>
<a id="pl.21.30"></a><var>21.30</var>NFL team home game is played in the stadium, grant the NFL team the exclusive right to <br/>
<a id="pl.21.31"></a><var>21.31</var>establish major league soccer at the stadium. The authority and the NFL team may enter <br/>
<a id="pl.21.32"></a><var>21.32</var>into an agreement providing the terms and conditions of such an arrangement, provided:<br/>
<a id="pl.21.33"></a><var>21.33</var>(1) if any of the NFL team owners whose family owns at least three percent of <br/>
<a id="pl.21.34"></a><var>21.34</var>the NFL team purchases full or partial ownership in a major league soccer franchise, <br/>
<a id="pl.21.35"></a><var>21.35</var>such franchise may play in the stadium under a use agreement with similar terms as are <br/>
<a id="pl.21.36"></a><var>21.36</var>applicable to the NFL team at no additional rent, but including a provision of payment <br/>
<a id="pl.22.1"></a><var>22.1</var>of game-day costs and reasonable marginal costs incurred by the authority as a result of <br/>
<a id="pl.22.2"></a><var>22.2</var>the major league soccer team; and<br/>
<a id="pl.22.3"></a><var>22.3</var>(2) capital improvements required by a major league soccer franchise must be <br/>
<a id="pl.22.4"></a><var>22.4</var>financed by the owners of the major league soccer team, unless otherwise agreed to by <br/>
<a id="pl.22.5"></a><var>22.5</var>the authority.<br/>
<a id="pl.22.6"></a><var>22.6</var>    Subd. 16. <b>NFL team-related entities.</b> Subject to the prior approval of the authority, <br/>
<a id="pl.22.7"></a><var>22.7</var>which shall not be unreasonably withheld, any of the obligations by the NFL team may <br/>
<a id="pl.22.8"></a><var>22.8</var>be performed by the NFL team, a related entity, or a third party, and the NFL team, any <br/>
<a id="pl.22.9"></a><var>22.9</var>entity related to the NFL team or third party may receive any revenues to which the NFL <br/>
<a id="pl.22.10"></a><var>22.10</var>team is entitled hereunder; provided, however, the NFL team shall remain liable if any <br/>
<a id="pl.22.11"></a><var>22.11</var>obligations are assigned to a related entity or third party.<br/>
<br/>
<a id="bill.1.16.0"></a><a id="pl.22.12"></a><var>22.12</var>    Sec. 16. <b>[473J.17] MUNICIPAL ACTIVITIES.</b><br/>
<a id="pl.22.13"></a><var>22.13</var>    Subdivision 1. <b>Property acquisition and disposition.</b> The city may, to the extent <br/>
<a id="pl.22.14"></a><var>22.14</var>legally permissible, acquire land, air rights, and other property interests within the <br/>
<a id="pl.22.15"></a><var>22.15</var>development area for the stadium site and stadium infrastructure and convey it to the <br/>
<a id="pl.22.16"></a><var>22.16</var>authority with or without consideration, prepare a site for development as a stadium, and <br/>
<a id="pl.22.17"></a><var>22.17</var>acquire and construct any related stadium infrastructure. To the extent property parcels or <br/>
<a id="pl.22.18"></a><var>22.18</var>interests acquired are more extensive than the stadium infrastructure requirements, the city <br/>
<a id="pl.22.19"></a><var>22.19</var>may sell or otherwise dispose of the excess.<br/>
<a id="pl.22.20"></a><var>22.20</var>    Subd. 2. <b>Claims.</b> Except as may be mutually agreed to by the city and the authority, <br/>
<a id="pl.22.21"></a><var>22.21</var>the city has no interest in or claim to any assets or revenues of the authority.<br/>
<a id="pl.22.22"></a><var>22.22</var>    Subd. 3. <b>Environmental; planning and zoning.</b> The authority is the responsible <br/>
<a id="pl.22.23"></a><var>22.23</var>governmental unit for an environmental impact statement for the stadium prepared under <br/>
<a id="pl.22.24"></a><var>22.24</var>section 116D.04, if an environmental impact statement is necessary. Notwithstanding <br/>
<a id="pl.22.25"></a><var>22.25</var>section 116D.04, subdivision 2b, and implementing rules: (1) the environmental <br/>
<a id="pl.22.26"></a><var>22.26</var>impact statement shall not be required to consider alternative stadium sites; and (2) the <br/>
<a id="pl.22.27"></a><var>22.27</var>environmental impact statement must be determined to be adequate before commencing <br/>
<a id="pl.22.28"></a><var>22.28</var>work on the foundation of the stadium, but the stadium and stadium infrastructure may <br/>
<a id="pl.22.29"></a><var>22.29</var>otherwise be started and all preliminary and final government decisions and actions may <br/>
<a id="pl.22.30"></a><var>22.30</var>be made and taken including, but not limited to, acquiring land; obtaining financing; <br/>
<a id="pl.22.31"></a><var>22.31</var>granting permits or other land use approvals; entering into grant, lease, or use agreements; <br/>
<a id="pl.22.32"></a><var>22.32</var>or preparing the site or related stadium infrastructure prior to a determination of the <br/>
<a id="pl.22.33"></a><var>22.33</var>adequacy of the environmental impact statement.<br/>
<a id="pl.22.34"></a><var>22.34</var>    Subd. 4. <b>Local government expenditure.</b> The city may make expenditures or <br/>
<a id="pl.22.35"></a><var>22.35</var>grants for other costs incidental and necessary to further the purposes of this chapter and <br/>
<a id="pl.23.1"></a><var>23.1</var>may, by agreement, reimburse in whole or in part, any entity that has granted, loaned, or <br/>
<a id="pl.23.2"></a><var>23.2</var>advanced funds to the city to further the purposes of this chapter. The city may reimburse <br/>
<a id="pl.23.3"></a><var>23.3</var>the authority or a local governmental entity or make a grant to the authority or such a <br/>
<a id="pl.23.4"></a><var>23.4</var>governmental unit or be reimbursed by the authority or local governmental entity for site <br/>
<a id="pl.23.5"></a><var>23.5</var>acquisition, preparation of the site for stadium development, and stadium infrastructure.<br/>
<a id="pl.23.6"></a><var>23.6</var>    Subd. 5. <b>Municipal authority.</b> The legislature intends that, except as expressly <br/>
<a id="pl.23.7"></a><var>23.7</var>limited herein, the city may acquire and develop stadium infrastructure, enter into contracts <br/>
<a id="pl.23.8"></a><var>23.8</var>with the authority and other governmental or nongovernmental entities, appropriate funds, <br/>
<a id="pl.23.9"></a><var>23.9</var>and make employees, consultants, and other revenues available for those purposes.<br/>
<a id="pl.23.10"></a><var>23.10</var>    Subd. 6. <b>Stadium Implementation Committee; city review.</b> In order to accomplish <br/>
<a id="pl.23.11"></a><var>23.11</var>the objectives of this act within the required time frame, it is necessary to establish an <br/>
<a id="pl.23.12"></a><var>23.12</var>alternative process for municipal land use and development review. It is hereby found <br/>
<a id="pl.23.13"></a><var>23.13</var>and declared that the construction of a stadium within the development area is consistent <br/>
<a id="pl.23.14"></a><var>23.14</var>with the adopted area plan, is the preferred stadium location, and is a permitted land use. <br/>
<a id="pl.23.15"></a><var>23.15</var>This subdivision establishes a procedure for all land use and development reviews and <br/>
<a id="pl.23.16"></a><var>23.16</var>approvals by the city of Minneapolis for the stadium and related stadium infrastructure <br/>
<a id="pl.23.17"></a><var>23.17</var>and supersedes all land use and development rules and restrictions and procedures <br/>
<a id="pl.23.18"></a><var>23.18</var>imposed by other law, charter, or ordinance, including without limitation section 15.99. <br/>
<a id="pl.23.19"></a><var>23.19</var>No later than 30 days after timely compliance of the city as provided in article 4, section 4, <br/>
<a id="pl.23.20"></a><var>23.20</var>of this act, the city of Minneapolis shall establish a stadium implementation committee <br/>
<a id="pl.23.21"></a><var>23.21</var>to make recommendations on the design plans submitted for the stadium, and stadium <br/>
<a id="pl.23.22"></a><var>23.22</var>infrastructure, and related improvements. The implementation committee must take <br/>
<a id="pl.23.23"></a><var>23.23</var>action to issue its recommendations within the time frames established in the planning <br/>
<a id="pl.23.24"></a><var>23.24</var>and construction timetable issued by the authority which shall provide for no less than 60 <br/>
<a id="pl.23.25"></a><var>23.25</var>days for the committee's review. The recommendations of the implementation committee <br/>
<a id="pl.23.26"></a><var>23.26</var>shall be forwarded to the city of Minneapolis Planning Commission for an advisory <br/>
<a id="pl.23.27"></a><var>23.27</var>recommendation and then to the city council for final action in a single resolution, which <br/>
<a id="pl.23.28"></a><var>23.28</var>final action must be taken within 45 days of the submission of the recommendations to the <br/>
<a id="pl.23.29"></a><var>23.29</var>planning commission. The city council shall not impose any unreasonable conditions on <br/>
<a id="pl.23.30"></a><var>23.30</var>the recommendations of the implementation committee, nor take any action or impose <br/>
<a id="pl.23.31"></a><var>23.31</var>any conditions that will result in delay from the time frames established in the planning <br/>
<a id="pl.23.32"></a><var>23.32</var>and construction timetable or in additional overall costs. Failure of the city council to act <br/>
<a id="pl.23.33"></a><var>23.33</var>within the 45-day period shall be deemed to be approval. The authority may seek de novo <br/>
<a id="pl.23.34"></a><var>23.34</var>review in the district court of any city council action. The district court or any appellate <br/>
<a id="pl.23.35"></a><var>23.35</var>court shall expedite review to the maximum extent possible and timely issue relief, orders, <br/>
<a id="pl.23.36"></a><var>23.36</var>or opinions as necessary to give effect to the provisions and objectives in this act.<br/>
<br/>
<a id="bill.1.17.0"></a><a id="pl.24.1"></a><var>24.1</var>    Sec. 17. <b>[473J.19] PROPERTY TAX EXEMPTION; SPECIAL ASSESSMENTS.</b><br/>
<a id="pl.24.2"></a><var>24.2</var>Any real or personal property acquired, owned, leased, controlled, used, or occupied <br/>
<a id="pl.24.3"></a><var>24.3</var>by the authority for any of the purposes of this chapter, is acquired, owned, leased, <br/>
<a id="pl.24.4"></a><var>24.4</var>controlled, used, and occupied for public, governmental, and municipal purposes. The <br/>
<a id="pl.24.5"></a><var>24.5</var>stadium and stadium infrastructure are exempt from ad valorem taxation by the state <br/>
<a id="pl.24.6"></a><var>24.6</var>or any political subdivision of the state provided that the properties are subject to <br/>
<a id="pl.24.7"></a><var>24.7</var>special assessments levied by a political subdivision for a local improvement in amounts <br/>
<a id="pl.24.8"></a><var>24.8</var>proportionate to and not exceeding the special benefit received by the properties from the <br/>
<a id="pl.24.9"></a><var>24.9</var>improvement. No possible use of any of the properties in any manner different from their <br/>
<a id="pl.24.10"></a><var>24.10</var>use under this chapter may be considered in determining the special benefit received by <br/>
<a id="pl.24.11"></a><var>24.11</var>the properties. Notwithstanding section 272.01, subdivision 2, or 273.19, real or personal <br/>
<a id="pl.24.12"></a><var>24.12</var>property which is subject to a lease or use agreement between the authority and another <br/>
<a id="pl.24.13"></a><var>24.13</var>person for uses related to the purposes of this chapter, including the operation of the <br/>
<a id="pl.24.14"></a><var>24.14</var>stadium and related parking facilities, is exempt from taxation regardless of the length of <br/>
<a id="pl.24.15"></a><var>24.15</var>the lease or use agreement or the characteristics of the entity leasing or using the property. <br/>
<a id="pl.24.16"></a><var>24.16</var>This section, insofar as it provides an exemption or special treatment, does not apply to <br/>
<a id="pl.24.17"></a><var>24.17</var>any real property that is leased for residential, business, or commercial development or to <br/>
<a id="pl.24.18"></a><var>24.18</var>a restaurant that is open for general business more than 200 days a year, or other purposes <br/>
<a id="pl.24.19"></a><var>24.19</var>different from those contemplated in this chapter.<br/>
<br/>
<a id="bill.1.18.0"></a><a id="pl.24.20"></a><var>24.20</var>    Sec. 18. <b>[473J.21] LIQUOR LICENSES.</b><br/>
<a id="pl.24.21"></a><var>24.21</var>At the request of the authority, the city may issue intoxicating liquor licenses that are <br/>
<a id="pl.24.22"></a><var>24.22</var>reasonably requested for the premises of the stadium site. These licenses are in addition to <br/>
<a id="pl.24.23"></a><var>24.23</var>the number authorized by law. All provisions of chapter 340A not inconsistent with this <br/>
<a id="pl.24.24"></a><var>24.24</var>section apply to the licenses authorized under this section.<br/>
<br/>
<a id="bill.1.19.0"></a><a id="pl.24.25"></a><var>24.25</var>    Sec. 19. <b>[473J.23] LOCAL TAXES.</b><br/>
<a id="pl.24.26"></a><var>24.26</var>No new or additional local sales or use tax shall be imposed on sales at the stadium <br/>
<a id="pl.24.27"></a><var>24.27</var>site unless the tax is applicable throughout the taxing jurisdiction. Except for a tax <br/>
<a id="pl.24.28"></a><var>24.28</var>imposed under article 7, no new or additional local tax shall be imposed on sales of tickets <br/>
<a id="pl.24.29"></a><var>24.29</var>and admissions to NFL team, NFL team-owned major league soccer, or other team related <br/>
<a id="pl.24.30"></a><var>24.30</var>events at the stadium, notwithstanding any law or ordinance, unless the tax is applicable <br/>
<a id="pl.24.31"></a><var>24.31</var>throughout the taxing jurisdiction. The admissions and amusements tax currently imposed <br/>
<a id="pl.24.32"></a><var>24.32</var>by the city of Minneapolis pursuant to Laws 1969, chapter 1092, may apply to admissions <br/>
<a id="pl.24.33"></a><var>24.33</var>for football and NFL team related events, including NFL team-owned major league soccer, <br/>
<a id="pl.24.34"></a><var>24.34</var>as provided in section 473J.15, subdivision 15, at the stadium.<br/>
<br/>
<a id="bill.1.20.0"></a><a id="pl.25.1"></a><var>25.1</var>    Sec. 20. <b>[473J.25] METROPOLITAN SPORTS FACILITIES COMMISSION </b><br/>
<a id="pl.25.2"></a><var>25.2</var><b>ASSETS; LIABILITIES TO AUTHORITY.</b><br/>
<a id="pl.25.3"></a><var>25.3</var>    Subdivision 1. <b>Authority expenses.</b> The Metropolitan Sports Facilities Commission <br/>
<a id="pl.25.4"></a><var>25.4</var>shall pay the operating expenses of the authority including salaries, compensation, and <br/>
<a id="pl.25.5"></a><var>25.5</var>other personnel, office, equipment, consultant and any other costs, until the commission is <br/>
<a id="pl.25.6"></a><var>25.6</var>abolished pursuant to subdivision 3.<br/>
<a id="pl.25.7"></a><var>25.7</var>    Subd. 2. <b>Transfer.</b> Within 90 days of the enactment of this chapter, the Metropolitan <br/>
<a id="pl.25.8"></a><var>25.8</var>Sports Facilities Commission shall pay its outstanding obligations, settle its accounts, and <br/>
<a id="pl.25.9"></a><var>25.9</var>transfer its remaining assets, liabilities, and obligations to the authority, for its purposes.<br/>
<a id="pl.25.10"></a><var>25.10</var>    Subd. 3. <b>Metropolitan Sports Facilities Commission abolished; interim powers </b><br/>
<a id="pl.25.11"></a><var>25.11</var><b>conferred on authority.</b> Upon transfer to the authority of all remaining assets, liabilities, <br/>
<a id="pl.25.12"></a><var>25.12</var>and obligations of the Metropolitan Sports Facilities Commission, in subdivision 2, the <br/>
<a id="pl.25.13"></a><var>25.13</var>Metropolitan Sports Facilities Commission is abolished. When the remaining assets, <br/>
<a id="pl.25.14"></a><var>25.14</var>liabilities, and obligations of the Metropolitan Sports Facilities Commission have been <br/>
<a id="pl.25.15"></a><var>25.15</var>transferred to the authority and the commission has been abolished, the powers and duties <br/>
<a id="pl.25.16"></a><var>25.16</var>of the commission under sections 473.551 to 473.599, and any other law shall devolve <br/>
<a id="pl.25.17"></a><var>25.17</var>upon the authority, in addition to the powers and duties of the authority under chapter <br/>
<a id="pl.25.18"></a><var>25.18</var>473J, until the first NFL home game is played at the stadium.<br/>
<a id="pl.25.19"></a><var>25.19</var>    Subd. 4. <b>Employees.</b> Upon transfer of ownership all persons employed by the <br/>
<a id="pl.25.20"></a><var>25.20</var>Metropolitan Sports Facilities Commission shall be transferred to the Minnesota Stadium <br/>
<a id="pl.25.21"></a><var>25.21</var>Authority without loss of right or privilege. Nothing in this section shall be construed to <br/>
<a id="pl.25.22"></a><var>25.22</var>give any such person the right or privilege to continue in the same level or classification <br/>
<a id="pl.25.23"></a><var>25.23</var>of employment previously held. The Minnesota Stadium Authority may assign any such <br/>
<a id="pl.25.24"></a><var>25.24</var>person to an employment level and classification which it deems appropriate and desirable <br/>
<a id="pl.25.25"></a><var>25.25</var>in accordance with its personnel code.<br/>
<br/>
<a id="bill.1.21.0"></a><a id="pl.25.26"></a><var>25.26</var>    Sec. 21. <b>EFFECTIVE DATE.</b><br/>
<a id="pl.25.27"></a><var>25.27</var>Except as otherwise provided, this article is effective the day following final <br/>
<a id="pl.25.28"></a><var>25.28</var>enactment.<br/>
<br/>
<a id="bill.2.0.0"></a>

<a id="bill.2.1.0"></a><a id="pl.25.31"></a><var>25.31</var>    Section 1. <b>[16A.965] STADIUM APPROPRIATION BONDS.</b><br/>
<a id="pl.25.32"></a><var>25.32</var>    Subdivision 1. <b>Definitions.</b> (a) The definitions in this subdivision and in chapter <br/>
<a id="pl.25.33"></a><var>25.33</var>473J apply to this section.<br/>
<a id="pl.26.1"></a><var>26.1</var>(b) "Appropriation bond" means a bond, note, or other similar instrument of the state <br/>
<a id="pl.26.2"></a><var>26.2</var>payable during a biennium from one or more of the following sources:<br/>
<a id="pl.26.3"></a><var>26.3</var>(1) money appropriated by law from the general fund, including, without limitation, <br/>
<a id="pl.26.4"></a><var>26.4</var>revenues deposited in the general fund as provided in articles 4 and 5, in any biennium for <br/>
<a id="pl.26.5"></a><var>26.5</var>debt service due with respect to obligations described in subdivision 2, paragraph (b);<br/>
<a id="pl.26.6"></a><var>26.6</var>(2) proceeds of the sale of obligations described in subdivision 2, paragraph (b);<br/>
<a id="pl.26.7"></a><var>26.7</var>(3) payments received for that purpose under agreements and ancillary arrangements <br/>
<a id="pl.26.8"></a><var>26.8</var>described in subdivision 2, paragraph (d); and<br/>
<a id="pl.26.9"></a><var>26.9</var>(4) investment earnings on amounts in clauses (1) to (3).<br/>
<a id="pl.26.10"></a><var>26.10</var>(c) "Debt service" means the amount payable in any biennium of principal, premium, <br/>
<a id="pl.26.11"></a><var>26.11</var>if any, and interest on appropriation bonds.<br/>
<a id="pl.26.12"></a><var>26.12</var>    Subd. 2. <b>Authorization to issue appropriation bonds.</b> (a) Subject to the limitations <br/>
<a id="pl.26.13"></a><var>26.13</var>of this subdivision, the commissioner may sell and issue appropriation bonds of the state <br/>
<a id="pl.26.14"></a><var>26.14</var>under this section for public purposes as provided by law, including, in particular, the <br/>
<a id="pl.26.15"></a><var>26.15</var>financing of all or a portion of the acquisition, construction, improving, and equipping <br/>
<a id="pl.26.16"></a><var>26.16</var>of the stadium project of the Minnesota Stadium Authority as provided by chapter 473J. <br/>
<a id="pl.26.17"></a><var>26.17</var>Proceeds of the appropriation bonds must be credited to a special appropriation stadium <br/>
<a id="pl.26.18"></a><var>26.18</var>bond proceeds fund in the state treasury. Net income from investment of the proceeds, <br/>
<a id="pl.26.19"></a><var>26.19</var>as estimated by the commissioner, must be credited to the special appropriation stadium <br/>
<a id="pl.26.20"></a><var>26.20</var>bond proceeds fund.<br/>
<a id="pl.26.21"></a><var>26.21</var>(b) Appropriation bonds may be sold and issued in amounts that, in the opinion of <br/>
<a id="pl.26.22"></a><var>26.22</var>the commissioner, are necessary to provide sufficient funds, not to exceed $548,000,000 <br/>
<a id="pl.26.23"></a><var>26.23</var>net of costs of issuance, deposits for debt service reserve funds, and costs of credit <br/>
<a id="pl.26.24"></a><var>26.24</var>enhancement for achieving the purposes authorized as provided under paragraph (a), and <br/>
<a id="pl.26.25"></a><var>26.25</var>pay debt service, pay costs of issuance, make deposits to reserve funds, pay the costs <br/>
<a id="pl.26.26"></a><var>26.26</var>of credit enhancement, or make payments under other agreements entered into under <br/>
<a id="pl.26.27"></a><var>26.27</var>paragraph (d); provided, however, that appropriation bonds issued and unpaid shall not <br/>
<a id="pl.26.28"></a><var>26.28</var>exceed $650,000,000 in principal amount, excluding refunding bonds sold and issued <br/>
<a id="pl.26.29"></a><var>26.29</var>under subdivision 4.<br/>
<a id="pl.26.30"></a><var>26.30</var>(c) Appropriation bonds may be issued from time to time in one or more series on <br/>
<a id="pl.26.31"></a><var>26.31</var>the terms and conditions the commissioner determines to be in the best interests of the <br/>
<a id="pl.26.32"></a><var>26.32</var>state, but the term on any series of appropriation bonds may not exceed 30 years. The <br/>
<a id="pl.26.33"></a><var>26.33</var>appropriation bonds of each issue and series thereof shall be dated and bear interest, <br/>
<a id="pl.26.34"></a><var>26.34</var>and may be includable in or excludable from the gross income of the owners for federal <br/>
<a id="pl.26.35"></a><var>26.35</var>income tax purposes.<br/>
<a id="pl.27.1"></a><var>27.1</var>(d) At the time of, or in anticipation of, issuing the appropriation bonds, and at any <br/>
<a id="pl.27.2"></a><var>27.2</var>time thereafter, so long as the appropriation bonds are outstanding, the commissioner may <br/>
<a id="pl.27.3"></a><var>27.3</var>enter into agreements and ancillary arrangements relating to the appropriation bonds, <br/>
<a id="pl.27.4"></a><var>27.4</var>including but not limited to trust indentures, grant agreements, lease or use agreements, <br/>
<a id="pl.27.5"></a><var>27.5</var>operating agreements, management agreements, liquidity facilities, remarketing or <br/>
<a id="pl.27.6"></a><var>27.6</var>dealer agreements, letter of credit agreements, insurance policies, guaranty agreements, <br/>
<a id="pl.27.7"></a><var>27.7</var>reimbursement agreements, indexing agreements, or interest exchange agreements. Any <br/>
<a id="pl.27.8"></a><var>27.8</var>payments made or received according to the agreement or ancillary arrangement shall be <br/>
<a id="pl.27.9"></a><var>27.9</var>made from or deposited as provided in the agreement or ancillary arrangement. The <br/>
<a id="pl.27.10"></a><var>27.10</var>determination of the commissioner included in an interest exchange agreement that the <br/>
<a id="pl.27.11"></a><var>27.11</var>agreement relates to an appropriation bond shall be conclusive.<br/>
<a id="pl.27.12"></a><var>27.12</var>(e) The commissioner may enter into written agreements or contracts relating to the <br/>
<a id="pl.27.13"></a><var>27.13</var>continuing disclosure of information necessary to comply with, or facilitate the issuance <br/>
<a id="pl.27.14"></a><var>27.14</var>of appropriation bonds in accordance with federal securities laws, rules, and regulations, <br/>
<a id="pl.27.15"></a><var>27.15</var>including Securities and Exchange Commission rules and regulations in Code of Federal <br/>
<a id="pl.27.16"></a><var>27.16</var>Regulations, title 17, section 240.15c 2-12. An agreement may be in the form of covenants <br/>
<a id="pl.27.17"></a><var>27.17</var>with purchasers and holders of appropriation bonds set forth in the order or resolution <br/>
<a id="pl.27.18"></a><var>27.18</var>authorizing the issuance of the appropriation bonds, or a separate document authorized <br/>
<a id="pl.27.19"></a><var>27.19</var>by the order or resolution.<br/>
<a id="pl.27.20"></a><var>27.20</var>(f) The appropriation bonds are not subject to chapter 16C.<br/>
<a id="pl.27.21"></a><var>27.21</var>    Subd. 3. <b>Form; procedure.</b> (a) Appropriation bonds may be issued in the form <br/>
<a id="pl.27.22"></a><var>27.22</var>of bonds, notes, or other similar instruments, and in the manner provided in section <br/>
<a id="pl.27.23"></a><var>27.23</var>16A.672. In the event that any provision of section 16A.672 conflicts with this section, <br/>
<a id="pl.27.24"></a><var>27.24</var>this section shall control.<br/>
<a id="pl.27.25"></a><var>27.25</var>(b) Every appropriation bond shall include a conspicuous statement of the limitation <br/>
<a id="pl.27.26"></a><var>27.26</var>established in subdivision 6.<br/>
<a id="pl.27.27"></a><var>27.27</var>(c) Appropriation bonds may be sold at either public or private sale upon such terms <br/>
<a id="pl.27.28"></a><var>27.28</var>as the commissioner shall determine are not inconsistent with this section and may be sold <br/>
<a id="pl.27.29"></a><var>27.29</var>at any price or percentage of par value. Any bid received may be rejected.<br/>
<a id="pl.27.30"></a><var>27.30</var>(d) Appropriation bonds must bear interest at a fixed or variable rate.<br/>
<a id="pl.27.31"></a><var>27.31</var>(e) Notwithstanding any other law, appropriation bonds issued under this section <br/>
<a id="pl.27.32"></a><var>27.32</var>shall be fully negotiable.<br/>
<a id="pl.27.33"></a><var>27.33</var>    Subd. 4. <b>Refunding bonds.</b> The commissioner from time to time may issue <br/>
<a id="pl.27.34"></a><var>27.34</var>appropriation bonds for the purpose of refunding any appropriation bonds then <br/>
<a id="pl.27.35"></a><var>27.35</var>outstanding, including the payment of any redemption premiums on the bonds, any <br/>
<a id="pl.27.36"></a><var>27.36</var>interest accrued or to accrue to the redemption date, and costs related to the issuance and <br/>
<a id="pl.28.1"></a><var>28.1</var>sale of the refunding bonds. The proceeds of any refunding bonds may, in the discretion of <br/>
<a id="pl.28.2"></a><var>28.2</var>the commissioner, be applied to the purchase or payment at maturity of the appropriation <br/>
<a id="pl.28.3"></a><var>28.3</var>bonds to be refunded, to the redemption of the outstanding appropriation bonds on any <br/>
<a id="pl.28.4"></a><var>28.4</var>redemption date, or to pay interest on the refunding bonds and may, pending application, <br/>
<a id="pl.28.5"></a><var>28.5</var>be placed in escrow to be applied to the purchase, payment, retirement, or redemption. Any <br/>
<a id="pl.28.6"></a><var>28.6</var>escrowed proceeds, pending such use, may be invested and reinvested in obligations that <br/>
<a id="pl.28.7"></a><var>28.7</var>are authorized investments under section 11A.24. The income earned or realized on the <br/>
<a id="pl.28.8"></a><var>28.8</var>investment may also be applied to the payment of the appropriation bonds to be refunded <br/>
<a id="pl.28.9"></a><var>28.9</var>or interest or premiums on the refunded appropriation bonds, or to pay interest on the <br/>
<a id="pl.28.10"></a><var>28.10</var>refunding bonds. After the terms of the escrow have been fully satisfied, any balance of the <br/>
<a id="pl.28.11"></a><var>28.11</var>proceeds and any investment income may be returned to the general fund or, if applicable, <br/>
<a id="pl.28.12"></a><var>28.12</var>the special appropriation stadium bond proceeds fund for use in any lawful manner. All <br/>
<a id="pl.28.13"></a><var>28.13</var>refunding bonds issued under this subdivision must be prepared, executed, delivered, and <br/>
<a id="pl.28.14"></a><var>28.14</var>secured by appropriations in the same manner as the appropriation bonds to be refunded.<br/>
<a id="pl.28.15"></a><var>28.15</var>    Subd. 5. <b>Appropriation bonds as legal investments.</b> Any of the following entities <br/>
<a id="pl.28.16"></a><var>28.16</var>may legally invest any sinking funds, money, or other funds belonging to them or under <br/>
<a id="pl.28.17"></a><var>28.17</var>their control in any appropriation bonds issued under this section:<br/>
<a id="pl.28.18"></a><var>28.18</var>(1) the state, the investment board, public officers, municipal corporations, political <br/>
<a id="pl.28.19"></a><var>28.19</var>subdivisions, and public bodies;<br/>
<a id="pl.28.20"></a><var>28.20</var>(2) banks and bankers, savings and loan associations, credit unions, trust companies, <br/>
<a id="pl.28.21"></a><var>28.21</var>savings banks and institutions, investment companies, insurance companies, insurance <br/>
<a id="pl.28.22"></a><var>28.22</var>associations, and other persons carrying on a banking or insurance business; and<br/>
<a id="pl.28.23"></a><var>28.23</var>(3) personal representatives, guardians, trustees, and other fiduciaries.<br/>
<a id="pl.28.24"></a><var>28.24</var>    Subd. 6. <b>No full faith and credit; state not required to make appropriations.</b><br/>
<a id="pl.28.25"></a><var>28.25</var>The appropriation bonds are not public debt of the state, and the full faith, credit, and <br/>
<a id="pl.28.26"></a><var>28.26</var>taxing powers of the state are not pledged to the payment of the appropriation bonds or to <br/>
<a id="pl.28.27"></a><var>28.27</var>any payment that the state agrees to make under this section. Appropriation bonds shall <br/>
<a id="pl.28.28"></a><var>28.28</var>not be obligations paid directly, in whole or in part, from a tax of statewide application <br/>
<a id="pl.28.29"></a><var>28.29</var>on any class of property, income, transaction, or privilege. Appropriation bonds shall be <br/>
<a id="pl.28.30"></a><var>28.30</var>payable in each fiscal year only from amounts that the legislature may appropriate for debt <br/>
<a id="pl.28.31"></a><var>28.31</var>service for any fiscal year, provided that nothing in this section shall be construed to <br/>
<a id="pl.28.32"></a><var>28.32</var>require the state to appropriate funds sufficient to make debt service payments with respect <br/>
<a id="pl.28.33"></a><var>28.33</var>to the appropriation bonds in any fiscal year. Appropriation bonds shall be canceled and <br/>
<a id="pl.28.34"></a><var>28.34</var>shall no longer be outstanding on the earlier of (1) the first day of a fiscal year for which <br/>
<a id="pl.28.35"></a><var>28.35</var>the legislature shall not have appropriated amounts sufficient for debt service, or (2) the <br/>
<a id="pl.28.36"></a><var>28.36</var>date of final payment of the principal of and interest on the appropriation bonds.<br/>
<a id="pl.29.1"></a><var>29.1</var>    Subd. 7. <b>Appropriation of proceeds.</b> The proceeds of appropriation bonds and <br/>
<a id="pl.29.2"></a><var>29.2</var>interest credited to the special appropriation stadium bond proceeds fund are appropriated <br/>
<a id="pl.29.3"></a><var>29.3</var>to the commissioner for payment of capital expenses, debt service on outstanding <br/>
<a id="pl.29.4"></a><var>29.4</var>indebtedness of the state, operating and capital reserves of the authority, and the funding <br/>
<a id="pl.29.5"></a><var>29.5</var>of debt service reserves for the appropriation bonds, each as permitted by state and federal <br/>
<a id="pl.29.6"></a><var>29.6</var>law, and nonsalary expenses incurred in conjunction with the sale of the appropriation <br/>
<a id="pl.29.7"></a><var>29.7</var>bonds, and such proceeds may be granted, loaned, or otherwise provided to the authority <br/>
<a id="pl.29.8"></a><var>29.8</var>for the public purpose provided by subdivision 2, paragraph (a).<br/>
<a id="pl.29.9"></a><var>29.9</var>    Subd. 8. <b>Commissioner; determination of available revenues.</b> (a) By March 15 <br/>
<a id="pl.29.10"></a><var>29.10</var>of each fiscal year, the commissioner, in consultation with the commissioner of revenue, <br/>
<a id="pl.29.11"></a><var>29.11</var>shall determine the estimated increase in revenues received from taxes imposed under <br/>
<a id="pl.29.12"></a><var>29.12</var>chapter 297E over the estimated revenues under the February 2012 revenue forecast for <br/>
<a id="pl.29.13"></a><var>29.13</var>that fiscal year. For fiscal years after fiscal year 2015, the commissioner shall use the <br/>
<a id="pl.29.14"></a><var>29.14</var>February 2012 revenue forecast for fiscal year 2015 as the baseline. All calculations under <br/>
<a id="pl.29.15"></a><var>29.15</var>this paragraph must be made net of estimated refunds of the taxes required to be paid.<br/>
<a id="pl.29.16"></a><var>29.16</var>(b) Available revenues for purposes of subdivision 9, equal the amount determined <br/>
<a id="pl.29.17"></a><var>29.17</var>under paragraph (a), less the following amounts for the fiscal year:<br/>
<a id="pl.29.18"></a><var>29.18</var>(1) the appropriation to principal and interest on appropriation bonds under <br/>
<a id="pl.29.19"></a><var>29.19</var>subdivision 9, paragraph (a);<br/>
<a id="pl.29.20"></a><var>29.20</var>(2) the appropriations under article 5 for administration and any successor <br/>
<a id="pl.29.21"></a><var>29.21</var>appropriation;<br/>
<a id="pl.29.22"></a><var>29.22</var>(3) the reduction in revenues resulting from the sales tax exemptions under section <br/>
<a id="pl.29.23"></a><var>29.23</var>297A.71;<br/>
<a id="pl.29.24"></a><var>29.24</var>(4) reimbursements authorized by section 473J.15, subdivision 2; and<br/>
<a id="pl.29.25"></a><var>29.25</var>(5) payment of compulsive gambling appropriations under article 5 and any <br/>
<a id="pl.29.26"></a><var>29.26</var>successor appropriation.<br/>
<a id="pl.29.27"></a><var>29.27</var>(c) If the estimated increase in revenues under paragraph (a) for the fiscal year are <br/>
<a id="pl.29.28"></a><var>29.28</var>less than or equal to $52,000,000, then available revenues, as determined under paragraph <br/>
<a id="pl.29.29"></a><var>29.29</var>(b), are allocated:<br/>
<a id="pl.29.30"></a><var>29.30</var>(1) 50 percent to be used for appropriations under subdivision 9, paragraph (a); and<br/>
<a id="pl.29.31"></a><var>29.31</var>(2) 50 percent to be used for appropriations under subdivision 9, paragraph (b)<br/>
<a id="pl.29.32"></a><var>29.32</var>(d) If the estimated increase in revenues under paragraph (a) for the fiscal year are <br/>
<a id="pl.29.33"></a><var>29.33</var>greater than $52,000,000, the first $16,000,000 of any available revenues, as determined <br/>
<a id="pl.29.34"></a><var>29.34</var>under paragraph (b), is allocated for payment of gambling tax rebates under section <br/>
<a id="pl.29.35"></a><var>29.35</var>297E.02, subdivision 12, and the remainder is allocated as provided under paragraph <br/>
<a id="pl.29.36"></a><var>29.36</var>(c), clauses (1) and (2).<br/>
<a id="pl.30.1"></a><var>30.1</var>(e) The provisions of this subdivision apply only after the issuance of appropriation <br/>
<a id="pl.30.2"></a><var>30.2</var>bonds under subdivision 2.<br/>
<a id="pl.30.3"></a><var>30.3</var>    Subd. 9. <b>Appropriation for debt service and other purposes.</b> (a) The amount <br/>
<a id="pl.30.4"></a><var>30.4</var>needed to pay principal and interest on appropriation bonds issued under this section is <br/>
<a id="pl.30.5"></a><var>30.5</var>appropriated each year from the general fund to the commissioner, subject to repeal, <br/>
<a id="pl.30.6"></a><var>30.6</var>unallotment under section 16A.152, or cancellation otherwise pursuant to subdivision 6, <br/>
<a id="pl.30.7"></a><var>30.7</var>for deposit into the bond payment accounts established for such purpose in the special <br/>
<a id="pl.30.8"></a><var>30.8</var>appropriation stadium bond proceeds fund.<br/>
<a id="pl.30.9"></a><var>30.9</var>(b) To the extent the commissioner determines revenues are available under the <br/>
<a id="pl.30.10"></a><var>30.10</var>provisions of subdivision 8, paragraph (b), for the fiscal year, the following amounts <br/>
<a id="pl.30.11"></a><var>30.11</var>are appropriated from the general fund:<br/>
<a id="pl.30.12"></a><var>30.12</var>(1) to replenish the amount on deposit in any debt service reserve account established <br/>
<a id="pl.30.13"></a><var>30.13</var>with respect to the appropriation bonds to the debt service reserve requirement amount as <br/>
<a id="pl.30.14"></a><var>30.14</var>determined by order of the commissioner; and<br/>
<a id="pl.30.15"></a><var>30.15</var>(2) to the extent not required under clause (1), for deposit to any general reserve <br/>
<a id="pl.30.16"></a><var>30.16</var>account established by order of the commissioner for application against any shortfall in <br/>
<a id="pl.30.17"></a><var>30.17</var>the amounts deposited to the general fund pursuant to section 297A.994.<br/>
<a id="pl.30.18"></a><var>30.18</var>    Subd. 10. <b>Waiver of immunity.</b> The waiver of immunity by the state provided for <br/>
<a id="pl.30.19"></a><var>30.19</var>by section 3.751, subdivision 1, shall be applicable to the appropriation bonds and any <br/>
<a id="pl.30.20"></a><var>30.20</var>ancillary contracts to which the commissioner is a party.<br/>
<a id="pl.30.21"></a><var>30.21</var>    Subd. 11. <b>Validation.</b> (a) Appropriation bonds issued under this section may be <br/>
<a id="pl.30.22"></a><var>30.22</var>validated in the manner provided by this subdivision. If comparable appropriation bonds <br/>
<a id="pl.30.23"></a><var>30.23</var>are judicially determined to be valid, nothing in this subdivision shall be construed <br/>
<a id="pl.30.24"></a><var>30.24</var>to prevent the sale or delivery of any appropriation bonds or notes without entry of a <br/>
<a id="pl.30.25"></a><var>30.25</var>judgment of validation by the Minnesota Supreme Court pursuant to this subdivision with <br/>
<a id="pl.30.26"></a><var>30.26</var>respect to the appropriation bonds authorized under this section.<br/>
<a id="pl.30.27"></a><var>30.27</var>(b) Any appropriation bonds issued under this section that are validated shall be <br/>
<a id="pl.30.28"></a><var>30.28</var>validated in the manner provided by this subdivision.<br/>
<a id="pl.30.29"></a><var>30.29</var>(c) The Minnesota Supreme Court shall have original jurisdiction to determine the <br/>
<a id="pl.30.30"></a><var>30.30</var>validation of appropriation bonds and all matters connected therewith.<br/>
<a id="pl.30.31"></a><var>30.31</var>(d) The commissioner may determine the commissioner's authority to issue <br/>
<a id="pl.30.32"></a><var>30.32</var>appropriation bonds and the legality of all proceedings in connection with issuing bonds. <br/>
<a id="pl.30.33"></a><var>30.33</var>For this purpose, a complaint shall be filed by the commissioner in the Minnesota Supreme <br/>
<a id="pl.30.34"></a><var>30.34</var>Court against the state and the taxpayers and citizens.<br/>
<a id="pl.31.1"></a><var>31.1</var>(e) As a condition precedent to filing of a complaint for the validation of <br/>
<a id="pl.31.2"></a><var>31.2</var>appropriation bonds, the commissioner shall take action providing for the issuance of <br/>
<a id="pl.31.3"></a><var>31.3</var>appropriation bonds in accordance with law.<br/>
<a id="pl.31.4"></a><var>31.4</var>(f) The complaint shall set out the state's authority to issue appropriation bonds, the <br/>
<a id="pl.31.5"></a><var>31.5</var>action or proceeding authorizing the issue and its adoption, all other essential proceedings <br/>
<a id="pl.31.6"></a><var>31.6</var>had or taken in connection with issuing bonds, the amount of the appropriation bonds to <br/>
<a id="pl.31.7"></a><var>31.7</var>be issued and the maximum interest they are to bear, and all other pertinent matters.<br/>
<a id="pl.31.8"></a><var>31.8</var>(g) The Minnesota Supreme Court shall issue an order directed against the state and <br/>
<a id="pl.31.9"></a><var>31.9</var>taxpayers, citizens, and others having or claiming any right, title, or interest affected by <br/>
<a id="pl.31.10"></a><var>31.10</var>the issuance of appropriation bonds, or to be affected by the bonds, allowing all persons, <br/>
<a id="pl.31.11"></a><var>31.11</var>in general terms and without naming them, and the state through its attorney general, to <br/>
<a id="pl.31.12"></a><var>31.12</var>appear before the Minnesota Supreme Court at a designated time and place and show <br/>
<a id="pl.31.13"></a><var>31.13</var>why the complaint should not be granted and the proceedings and appropriation bonds <br/>
<a id="pl.31.14"></a><var>31.14</var>validated. A copy of the complaint and order shall be served on the attorney general at <br/>
<a id="pl.31.15"></a><var>31.15</var>least 20 days before the time fixed for hearing. The attorney general shall examine the <br/>
<a id="pl.31.16"></a><var>31.16</var>complaint, and, if it appears or there is reason to believe that it is defective, insufficient, or <br/>
<a id="pl.31.17"></a><var>31.17</var>untrue, or if in the opinion of the attorney general the issuance of the appropriation bonds <br/>
<a id="pl.31.18"></a><var>31.18</var>in question has not been duly authorized, defense shall be made by the attorney general as <br/>
<a id="pl.31.19"></a><var>31.19</var>the attorney general deems appropriate.<br/>
<a id="pl.31.20"></a><var>31.20</var>(h) Before the date set for hearing, as directed by the Minnesota Supreme Court, <br/>
<a id="pl.31.21"></a><var>31.21</var>either the clerk of the Minnesota appellate courts or the commissioner shall publish a copy <br/>
<a id="pl.31.22"></a><var>31.22</var>of the order in a legal newspaper of general circulation in Ramsey County and the state, at <br/>
<a id="pl.31.23"></a><var>31.23</var>least once each week for two consecutive weeks, commencing with the first publication, <br/>
<a id="pl.31.24"></a><var>31.24</var>which shall not be less than 20 days before the date set for hearing. By this publication, <br/>
<a id="pl.31.25"></a><var>31.25</var>all taxpayers, citizens, and others having or claiming any right, title, or interest in the <br/>
<a id="pl.31.26"></a><var>31.26</var>state, are made parties defendant to the action and the Minnesota Supreme Court has <br/>
<a id="pl.31.27"></a><var>31.27</var>jurisdiction of them to the same extent as if named as defendants in the complaint and <br/>
<a id="pl.31.28"></a><var>31.28</var>personally served with process.<br/>
<a id="pl.31.29"></a><var>31.29</var>(i) Any taxpayer, citizen, or person interested may become a party to the action by <br/>
<a id="pl.31.30"></a><var>31.30</var>moving against or pleading to the complaint at or before the time set for hearing. The <br/>
<a id="pl.31.31"></a><var>31.31</var>Minnesota Supreme Court shall determine all questions of law and fact and make orders <br/>
<a id="pl.31.32"></a><var>31.32</var>that will enable it to properly try and determine the action and render a final judgment <br/>
<a id="pl.31.33"></a><var>31.33</var>within 30 days of the hearing with the least possible delay.<br/>
<a id="pl.31.34"></a><var>31.34</var>(j) If the judgment validates appropriation bonds, the judgment is forever conclusive <br/>
<a id="pl.31.35"></a><var>31.35</var>as to all matters adjudicated and as against all parties affected and all others having or <br/>
<a id="pl.31.36"></a><var>31.36</var>claiming any right, title, or interest affected by the issuance of appropriation bonds, or to <br/>
<a id="pl.32.1"></a><var>32.1</var>be affected in any way by issuing the bonds, and the validity of appropriation bonds or of <br/>
<a id="pl.32.2"></a><var>32.2</var>any revenues pledged for the payment of the bonds, or of the proceedings authorizing the <br/>
<a id="pl.32.3"></a><var>32.3</var>issuance of the bonds, including any remedies provided for their collection, shall never <br/>
<a id="pl.32.4"></a><var>32.4</var>be called in question in any court by any person or party.<br/>
<a id="pl.32.5"></a><var>32.5</var>(k)(1) Appropriation bonds, when validated under this section, shall have stamped <br/>
<a id="pl.32.6"></a><var>32.6</var>or written on the bonds, by the proper officers of the state issuing them, a statement <br/>
<a id="pl.32.7"></a><var>32.7</var>in substantially the following form: "This appropriation bond is one of a series of <br/>
<a id="pl.32.8"></a><var>32.8</var>appropriation bonds which were validated by judgment of the Supreme Court of the State <br/>
<a id="pl.32.9"></a><var>32.9</var>of Minnesota, rendered on ……. , ....... (year)".<br/>
<a id="pl.32.10"></a><var>32.10</var>(2) A certified copy of the judgment or decree shall be received as evidence in any <br/>
<a id="pl.32.11"></a><var>32.11</var>court in this state.<br/>
<a id="pl.32.12"></a><var>32.12</var>(l) The costs shall be paid by the state, except when a taxpayer, citizen, or other <br/>
<a id="pl.32.13"></a><var>32.13</var>person contests the action or intervenes, the court may tax the whole or any part of the <br/>
<a id="pl.32.14"></a><var>32.14</var>costs against the person that is equitable.<br/>
<a id="pl.32.15"></a><var>32.15</var>(m) A justice of the Minnesota Supreme Court is not disqualified in any validation <br/>
<a id="pl.32.16"></a><var>32.16</var>action because the justice is a landowner or taxpayer of the state.<br/>
<br/>
<a id="bill.2.2.0"></a><a id="pl.32.17"></a><var>32.17</var>    Sec. 2. <b>APPROPRIATION.</b><br/>
<a id="pl.32.18"></a><var>32.18</var>If state appropriation bonds have not been issued under Minnesota Statutes, section <br/>
<a id="pl.32.19"></a><var>32.19</var>16A.965, amounts not to exceed the increased revenues estimated by the commissioner <br/>
<a id="pl.32.20"></a><var>32.20</var>of management and budget under Minnesota Statutes, section 16A.965, subdivision 8, <br/>
<a id="pl.32.21"></a><var>32.21</var>paragraph (a), are appropriated to the commissioner of management and budget to make <br/>
<a id="pl.32.22"></a><var>32.22</var>grants to the Minnesota Stadium Authority for stadium costs as defined under Minnesota <br/>
<a id="pl.32.23"></a><var>32.23</var>Statutes, section 473J.03, subdivision 8.<br/>
<br/>
<a id="bill.3.0.0"></a>

<a id="bill.3.1.0"></a><a id="pl.32.26"></a><var>32.26</var>    Section 1. Minnesota Statutes 2010, section 3.971, subdivision 6, is amended to read:<br/>
<a id="pl.32.27"></a><var>32.27</var>    Subd. 6. <b>Financial audits.</b> The legislative auditor shall audit the financial <br/>
<a id="pl.32.28"></a><var>32.28</var>statements of the state of Minnesota required by section 
         <statute_ref>16A.50</statute_ref> and, as resources permit, <br/>
<a id="pl.32.29"></a><var>32.29</var>shall audit Minnesota State Colleges and Universities, the University of Minnesota, state <br/>
<a id="pl.32.30"></a><var>32.30</var>agencies, departments, boards, commissions, courts, and other state organizations subject <br/>
<a id="pl.32.31"></a><var>32.31</var>to audit by the legislative auditor, including the State Agricultural Society, Agricultural <br/>
<a id="pl.32.32"></a><var>32.32</var>Utilization Research Institute, Enterprise Minnesota, Inc., Minnesota Historical <br/>
<a id="pl.32.33"></a><var>32.33</var>Society, Labor Interpretive Center, Minnesota Partnership for Action Against Tobacco, <br/>
<a id="pl.32.34"></a><var>32.34</var>Metropolitan Sports Facilities Commission, Metropolitan Airports Commission, and <br/>
<a id="pl.33.1"></a><var>33.1</var>Metropolitan Mosquito Control District. Financial audits must be conducted according to <br/>
<a id="pl.33.2"></a><var>33.2</var>generally accepted government auditing standards. The legislative auditor shall see that <br/>
<a id="pl.33.3"></a><var>33.3</var>all provisions of law respecting the appropriate and economic use of public funds are <br/>
<a id="pl.33.4"></a><var>33.4</var>complied with and may, as part of a financial audit or separately, investigate allegations <br/>
<a id="pl.33.5"></a><var>33.5</var>of noncompliance.<br/>
<br/>
<a id="bill.3.2.0"></a><a id="pl.33.6"></a><var>33.6</var>    Sec. 2. Minnesota Statutes 2010, section 13.55, subdivision 1, is amended to read:<br/>
<a id="pl.33.7"></a><var>33.7</var>    Subdivision 1. <b>Not public classification.</b> The following data received, created, or <br/>
<a id="pl.33.8"></a><var>33.8</var>maintained by or for publicly owned and operated convention facilities, or civic center <br/>
<a id="pl.33.9"></a><var>33.9</var>authorities, or the Metropolitan Sports Facilities Commission are classified as nonpublic <br/>
<a id="pl.33.10"></a><var>33.10</var>data pursuant to section 
         <statute_ref>13.02, subdivision 9</statute_ref>; or private data on individuals pursuant <br/>
<a id="pl.33.11"></a><var>33.11</var>to section 
         <statute_ref>13.02, subdivision 12</statute_ref>:<br/>
<a id="pl.33.12"></a><var>33.12</var>(a) a letter or other documentation from any person who makes inquiry to or who is <br/>
<a id="pl.33.13"></a><var>33.13</var>contacted by the facility regarding the availability of the facility for staging events;<br/>
<a id="pl.33.14"></a><var>33.14</var>(b) identity of firms and corporations which contact the facility;<br/>
<a id="pl.33.15"></a><var>33.15</var>(c) type of event which they wish to stage in the facility;<br/>
<a id="pl.33.16"></a><var>33.16</var>(d) suggested terms of rentals; and<br/>
<a id="pl.33.17"></a><var>33.17</var>(e) responses of authority staff to these inquiries.<br/>
<br/>
<a id="bill.3.3.0"></a><a id="pl.33.18"></a><var>33.18</var>    Sec. 3. Minnesota Statutes 2011 Supplement, section 340A.404, subdivision 1, is <br/>
<a id="pl.33.19"></a><var>33.19</var>amended to read:<br/>
<a id="pl.33.20"></a><var>33.20</var>    Subdivision 1. <b>Cities.</b> (a) A city may issue an on-sale intoxicating liquor license to <br/>
<a id="pl.33.21"></a><var>33.21</var>the following establishments located within its jurisdiction:<br/>
<a id="pl.33.22"></a><var>33.22</var>(1) hotels;<br/>
<a id="pl.33.23"></a><var>33.23</var>(2) restaurants;<br/>
<a id="pl.33.24"></a><var>33.24</var>(3) bowling centers;<br/>
<a id="pl.33.25"></a><var>33.25</var>(4) clubs or congressionally chartered veterans organizations with the approval of <br/>
<a id="pl.33.26"></a><var>33.26</var>the commissioner, provided that the organization has been in existence for at least three <br/>
<a id="pl.33.27"></a><var>33.27</var>years and liquor sales will only be to members and bona fide guests, except that a club <br/>
<a id="pl.33.28"></a><var>33.28</var>may permit the general public to participate in a wine tasting conducted at the club under <br/>
<a id="pl.33.29"></a><var>33.29</var>section 
         <statute_ref>340A.419</statute_ref>; and<br/>
<a id="pl.33.30"></a><var>33.30</var>(5) sports facilities located on land owned by the Metropolitan Sports Commission; <br/>
<a id="pl.33.31"></a><var>33.31</var>and<br/>
<a id="pl.33.32"></a><var>33.32</var>(6) exclusive liquor stores.<br/>
<a id="pl.33.33"></a><var>33.33</var>(b) A city may issue an on-sale intoxicating liquor license, an on-sale wine license, <br/>
<a id="pl.33.34"></a><var>33.34</var>or an on-sale malt liquor license to a theater within the city, notwithstanding any law, local <br/>
<a id="pl.34.1"></a><var>34.1</var>ordinance, or charter provision. A license issued under this paragraph authorizes sales on <br/>
<a id="pl.34.2"></a><var>34.2</var>all days of the week to persons attending events at the theater.<br/>
<a id="pl.34.3"></a><var>34.3</var>(c) A city may issue an on-sale intoxicating liquor license, an on-sale wine license, <br/>
<a id="pl.34.4"></a><var>34.4</var>or an on-sale malt liquor license to a convention center within the city, notwithstanding <br/>
<a id="pl.34.5"></a><var>34.5</var>any law, local ordinance, or charter provision. A license issued under this paragraph <br/>
<a id="pl.34.6"></a><var>34.6</var>authorizes sales on all days of the week to persons attending events at the convention <br/>
<a id="pl.34.7"></a><var>34.7</var>center. This paragraph does not apply to convention centers located in the seven-county <br/>
<a id="pl.34.8"></a><var>34.8</var>metropolitan area.<br/>
<a id="pl.34.9"></a><var>34.9</var>(d) A city may issue an on-sale wine license and an on-sale malt liquor license to <br/>
<a id="pl.34.10"></a><var>34.10</var>a person who is the owner of a summer collegiate league baseball team, or to a person <br/>
<a id="pl.34.11"></a><var>34.11</var>holding a concessions or management contract with the owner, for beverage sales at a <br/>
<a id="pl.34.12"></a><var>34.12</var>ballpark or stadium located within the city for the purposes of summer collegiate league <br/>
<a id="pl.34.13"></a><var>34.13</var>baseball games at the ballpark or stadium, notwithstanding any law, local ordinance, or <br/>
<a id="pl.34.14"></a><var>34.14</var>charter provision. A license issued under this paragraph authorizes sales on all days of the <br/>
<a id="pl.34.15"></a><var>34.15</var>week to persons attending baseball games at the ballpark or stadium.<br/>
<br/>
<a id="bill.3.4.0"></a><a id="pl.34.16"></a><var>34.16</var>    Sec. 4. Minnesota Statutes 2010, section 352.01, subdivision 2a, is amended to read:<br/>
<a id="pl.34.17"></a><var>34.17</var>    Subd. 2a. <b>Included employees.</b> (a) "State employee" includes:<br/>
<a id="pl.34.18"></a><var>34.18</var>    (1) employees of the Minnesota Historical Society;<br/>
<a id="pl.34.19"></a><var>34.19</var>    (2) employees of the State Horticultural Society;<br/>
<a id="pl.34.20"></a><var>34.20</var>    (3) employees of the Minnesota Crop Improvement Association;<br/>
<a id="pl.34.21"></a><var>34.21</var>    (4) employees of the adjutant general whose salaries are paid from federal funds and <br/>
<a id="pl.34.22"></a><var>34.22</var>who are not covered by any federal civilian employees retirement system;<br/>
<a id="pl.34.23"></a><var>34.23</var>    (5) employees of the Minnesota State Colleges and Universities who are employed <br/>
<a id="pl.34.24"></a><var>34.24</var>under the university or college activities program;<br/>
<a id="pl.34.25"></a><var>34.25</var>    (6) currently contributing employees covered by the system who are temporarily <br/>
<a id="pl.34.26"></a><var>34.26</var>employed by the legislature during a legislative session or any currently contributing <br/>
<a id="pl.34.27"></a><var>34.27</var>employee employed for any special service as defined in subdivision 2b, clause (8);<br/>
<a id="pl.34.28"></a><var>34.28</var>    (7) employees of the legislature who are appointed without a limit on the duration <br/>
<a id="pl.34.29"></a><var>34.29</var>of their employment and persons employed or designated by the legislature or by a <br/>
<a id="pl.34.30"></a><var>34.30</var>legislative committee or commission or other competent authority to conduct a special <br/>
<a id="pl.34.31"></a><var>34.31</var>inquiry, investigation, examination, or installation;<br/>
<a id="pl.34.32"></a><var>34.32</var>    (8) trainees who are employed on a full-time established training program <br/>
<a id="pl.34.33"></a><var>34.33</var>performing the duties of the classified position for which they will be eligible to receive <br/>
<a id="pl.34.34"></a><var>34.34</var>immediate appointment at the completion of the training period;<br/>
<a id="pl.34.35"></a><var>34.35</var>    (9) employees of the Minnesota Safety Council;<br/>
<a id="pl.35.1"></a><var>35.1</var>    (10) any employees who are on authorized leave of absence from the Transit <br/>
<a id="pl.35.2"></a><var>35.2</var>Operating Division of the former Metropolitan Transit Commission and who are employed <br/>
<a id="pl.35.3"></a><var>35.3</var>by the labor organization which is the exclusive bargaining agent representing employees <br/>
<a id="pl.35.4"></a><var>35.4</var>of the Transit Operating Division;<br/>
<a id="pl.35.5"></a><var>35.5</var>    (11) employees of the Metropolitan Council, Metropolitan Parks and Open Space <br/>
<a id="pl.35.6"></a><var>35.6</var>Commission, Metropolitan Sports Facilities Commission, or Metropolitan Mosquito <br/>
<a id="pl.35.7"></a><var>35.7</var>Control Commission unless excluded under subdivision 2b or are covered by another <br/>
<a id="pl.35.8"></a><var>35.8</var>public pension fund or plan under section 
         <statute_ref>473.415, subdivision 3</statute_ref>;<br/>
<a id="pl.35.9"></a><var>35.9</var>    (12) judges of the Tax Court;<br/>
<a id="pl.35.10"></a><var>35.10</var>    (13) personnel who were employed on June 30, 1992, by the University of <br/>
<a id="pl.35.11"></a><var>35.11</var>Minnesota in the management, operation, or maintenance of its heating plant facilities, <br/>
<a id="pl.35.12"></a><var>35.12</var>whose employment transfers to an employer assuming operation of the heating plant <br/>
<a id="pl.35.13"></a><var>35.13</var>facilities, so long as the person is employed at the University of Minnesota heating plant <br/>
<a id="pl.35.14"></a><var>35.14</var>by that employer or by its successor organization;<br/>
<a id="pl.35.15"></a><var>35.15</var>    (14) personnel who are employed as seasonal employees in the classified or <br/>
<a id="pl.35.16"></a><var>35.16</var>unclassified service;<br/>
<a id="pl.35.17"></a><var>35.17</var>    (15) persons who are employed by the Department of Commerce as a peace officer <br/>
<a id="pl.35.18"></a><var>35.18</var>in the Insurance Fraud Prevention Division under section 
         <statute_ref>45.0135</statute_ref> who have attained the <br/>
<a id="pl.35.19"></a><var>35.19</var>mandatory retirement age specified in section 
         <statute_ref>43A.34, subdivision 4</statute_ref>;<br/>
<a id="pl.35.20"></a><var>35.20</var>    (16) employees of the University of Minnesota unless excluded under subdivision <br/>
<a id="pl.35.21"></a><var>35.21</var>2b, clause (3);<br/>
<a id="pl.35.22"></a><var>35.22</var>    (17) employees of the Middle Management Association whose employment began <br/>
<a id="pl.35.23"></a><var>35.23</var>after July 1, 2007, and to whom section 
         <statute_ref>352.029</statute_ref> does not apply; and<br/>
<a id="pl.35.24"></a><var>35.24</var>    (18) employees of the Minnesota Government Engineers Council to whom section <br/>
<statute_ref><a id="pl.35.25"></a><var>35.25</var>352.029
         </statute_ref> does not apply.<br/>
<a id="pl.35.26"></a><var>35.26</var>    (b) Employees specified in paragraph (a), clause (13), are included employees under <br/>
<a id="pl.35.27"></a><var>35.27</var>paragraph (a) if employer and employee contributions are made in a timely manner in the <br/>
<a id="pl.35.28"></a><var>35.28</var>amounts required by section 
         <statute_ref>352.04</statute_ref>. Employee contributions must be deducted from <br/>
<a id="pl.35.29"></a><var>35.29</var>salary. Employer contributions are the sole obligation of the employer assuming operation <br/>
<a id="pl.35.30"></a><var>35.30</var>of the University of Minnesota heating plant facilities or any successor organizations to <br/>
<a id="pl.35.31"></a><var>35.31</var>that employer.<br/>
<br/>
<a id="bill.3.5.0"></a><a id="pl.35.32"></a><var>35.32</var>    Sec. 5. Minnesota Statutes 2010, section 473.121, subdivision 5a, is amended to read:<br/>
<a id="pl.35.33"></a><var>35.33</var>    Subd. 5a. <b>Metropolitan agency.</b> "Metropolitan agency" means the Metropolitan <br/>
<a id="pl.35.34"></a><var>35.34</var>Parks and Open Space Commission, and the Metropolitan Airports Commission, and <br/>
<a id="pl.35.35"></a><var>35.35</var>Metropolitan Sports Facilities Commission.<br/>
<br/>
<a id="bill.3.6.0"></a><a id="pl.36.1"></a><var>36.1</var>    Sec. 6. Minnesota Statutes 2010, section 473.164, is amended to read:<br/>
<a id="pl.36.2"></a><var>36.2</var><b>473.164 SPORTS, AIRPORT COMMISSIONS TO PAY COUNCIL COSTS.</b><br/>
<a id="pl.36.3"></a><var>36.3</var>    Subdivision 1. <b>Annually reimburse.</b> The Metropolitan Sports Facilities <br/>
<a id="pl.36.4"></a><var>36.4</var>Commission and the Metropolitan Airports Commission shall annually reimburse the <br/>
<a id="pl.36.5"></a><var>36.5</var>council for costs incurred by the council in the discharge of its responsibilities relating to <br/>
<a id="pl.36.6"></a><var>36.6</var>the commission. The costs may be charged against any revenue sources of the commission <br/>
<a id="pl.36.7"></a><var>36.7</var>as determined by the commission.<br/>
<a id="pl.36.8"></a><var>36.8</var>    Subd. 2. <b>Estimates, budget, transfer.</b> On or before May 1 of each year, the council <br/>
<a id="pl.36.9"></a><var>36.9</var>shall transmit to each the commission an estimate of the costs which the council will <br/>
<a id="pl.36.10"></a><var>36.10</var>incur in the discharge of its responsibilities related to the commission in the next budget <br/>
<a id="pl.36.11"></a><var>36.11</var>year including, without limitation, costs in connection with the preparation, review, <br/>
<a id="pl.36.12"></a><var>36.12</var>implementation and defense of plans, programs and budgets of the commission. Each The <br/>
<a id="pl.36.13"></a><var>36.13</var>commission shall include the estimates in its budget for the next budget year and may <br/>
<a id="pl.36.14"></a><var>36.14</var>transmit its comments concerning the estimated amount to the council during the budget <br/>
<a id="pl.36.15"></a><var>36.15</var>review process. Prior to December 15 of each year, the amount budgeted by each the <br/>
<a id="pl.36.16"></a><var>36.16</var>commission for the next budget year may be changed following approval by the council. <br/>
<a id="pl.36.17"></a><var>36.17</var>During each budget year, the commission shall transfer budgeted funds to the council in <br/>
<a id="pl.36.18"></a><var>36.18</var>advance when requested by the council.<br/>
<a id="pl.36.19"></a><var>36.19</var>    Subd. 3. <b>Final statement.</b> At the conclusion of each budget year, the council, in <br/>
<a id="pl.36.20"></a><var>36.20</var>cooperation with each the commission, shall adopt a final statement of costs incurred by the <br/>
<a id="pl.36.21"></a><var>36.21</var>council for each the commission. Where costs incurred in the budget year have exceeded <br/>
<a id="pl.36.22"></a><var>36.22</var>the amount budgeted, each the commission shall transfer to the council the additional <br/>
<a id="pl.36.23"></a><var>36.23</var>moneys needed to pay the amount of the costs in excess of the amount budgeted, and shall <br/>
<a id="pl.36.24"></a><var>36.24</var>include a sum in its next budget. Any excess of budgeted costs over actual costs may be <br/>
<a id="pl.36.25"></a><var>36.25</var>retained by the council and applied to the payment of budgeted costs in the next year.<br/>
<br/>
<a id="bill.3.7.0"></a><a id="pl.36.26"></a><var>36.26</var>    Sec. 7. Minnesota Statutes 2010, section 473.565, subdivision 1, is amended to read:<br/>
<a id="pl.36.27"></a><var>36.27</var>    Subdivision 1. <b>In MSRS; exceptions.</b> All employees of the former commission <br/>
<a id="pl.36.28"></a><var>36.28</var>shall be members of the Minnesota State Retirement System with respect to service <br/>
<a id="pl.36.29"></a><var>36.29</var>rendered on or after May 17, 1977, except as provided in this section.<br/>
<br/>
<a id="bill.3.8.0"></a><a id="pl.36.30"></a><var>36.30</var>    Sec. 8. <b> REPEALER.</b><br/>
<a id="pl.36.31"></a><var>36.31</var>Minnesota Statutes 2010, sections 473.551; 473.552; 473.553, subdivisions 1, 2, 3, <br/>
<a id="pl.36.32"></a><var>36.32</var>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, <br/>
<a id="pl.36.33"></a><var>36.33</var>13, 14, 16, and 17; 473.561; 473.564, subdivisions 2 and 3; 473.572; 473.581; 473.592, <br/>
<a id="pl.36.34"></a><var>36.34</var>subdivision 1; 473.595; 473.598; 473.599; and 473.76, are repealed.<br/>
<br/>
<a id="bill.3.9.0"></a><a id="pl.37.1"></a><var>37.1</var>    Sec. 9. <b>EFFECTIVE DATE.</b><br/>
<a id="pl.37.2"></a><var>37.2</var>This article is effective June 30, 2016.<br/>
<br/>
<a id="bill.4.0.0"></a>

<a id="bill.4.1.0"></a><a id="pl.37.5"></a><var>37.5</var>    Section 1. <b>[297A.994] CITY OF MINNEAPOLIS SALES TAX; ALLOCATION </b><br/>
<a id="pl.37.6"></a><var>37.6</var><b>OF REVENUES.</b><br/>
<a id="pl.37.7"></a><var>37.7</var>    Subdivision 1. <b>Scope.</b> Notwithstanding the provisions of section 297A.99, <br/>
<a id="pl.37.8"></a><var>37.8</var>subdivision 11, the provisions of this section govern the remittance of the proceeds of <br/>
<a id="pl.37.9"></a><var>37.9</var>taxes imposed by the city of Minneapolis under the special law. <br/>
<a id="pl.37.10"></a><var>37.10</var>    Subd. 2. <b>Definitions.</b> (a) For purposes of this section, the following definitions <br/>
<a id="pl.37.11"></a><var>37.11</var>apply.<br/>
<a id="pl.37.12"></a><var>37.12</var>(b) "City" means the city of Minneapolis.<br/>
<a id="pl.37.13"></a><var>37.13</var>(c) "Special law" means Laws 1986, chapter 396, sections 4 and 5, as amended.<br/>
<a id="pl.37.14"></a><var>37.14</var>(d) "Tax" means the sales taxes imposed by the city under the special law.<br/>
<a id="pl.37.15"></a><var>37.15</var>(e) The terms defined under section 473J.03 apply for purposes of this section.<br/>
<a id="pl.37.16"></a><var>37.16</var>    Subd. 3. <b>General allocation of revenues.</b> The commissioner shall apply the <br/>
<a id="pl.37.17"></a><var>37.17</var>revenues from the taxes as follows:<br/>
<a id="pl.37.18"></a><var>37.18</var>(1) the commissioner must deduct the costs of collecting and administering the taxes, <br/>
<a id="pl.37.19"></a><var>37.19</var>according to the applicable law and agreements between the commissioner and the city. <br/>
<a id="pl.37.20"></a><var>37.20</var>For revenues from the general sales tax, the commissioner must deduct a proportionate <br/>
<a id="pl.37.21"></a><var>37.21</var>share of the cost of collection, as described in section 297A.99, subdivision 11;<br/>
<a id="pl.37.22"></a><var>37.22</var>(2) after deducting the costs in clause (1), the commissioner must deduct refunds of <br/>
<a id="pl.37.23"></a><var>37.23</var>any of these taxes due to taxpayers, if any;<br/>
<a id="pl.37.24"></a><var>37.24</var>(3) after making the deductions provided in clause (2), notwithstanding the <br/>
<a id="pl.37.25"></a><var>37.25</var>provisions of any agreement between the commissioner and the city providing for <br/>
<a id="pl.37.26"></a><var>37.26</var>collection and remittance of these taxes, the commissioner must deposit to the general <br/>
<a id="pl.37.27"></a><var>37.27</var>fund the amounts specified in subdivision 4; and<br/>
<a id="pl.37.28"></a><var>37.28</var>(4) after depositing to the general fund under clause (3) as specified in subdivision <br/>
<a id="pl.37.29"></a><var>37.29</var>4, the commissioner must remit the remainder to the city for the uses provided in the <br/>
<a id="pl.37.30"></a><var>37.30</var>special law.<br/>
<a id="pl.37.31"></a><var>37.31</var>    Subd. 4. <b>General fund allocations.</b> (a) The commissioner must deposit to the <br/>
<a id="pl.37.32"></a><var>37.32</var>general fund the following amounts, as required by subdivision 3, clause (3):<br/>
<a id="pl.37.33"></a><var>37.33</var>(1) for state bond debt service support beginning in calendar year 2021, and for each <br/>
<a id="pl.37.34"></a><var>37.34</var>calendar year thereafter through calendar year 2046, proportionate amounts periodically <br/>
<a id="pl.37.35"></a><var>37.35</var>so that not later than December 31, 2046, an aggregate annual amount equal to a present <br/>
<a id="pl.38.1"></a><var>38.1</var>value of $150,000,000 has been deposited in the general fund. To determine aggregate <br/>
<a id="pl.38.2"></a><var>38.2</var>present value, the commissioner must consult with the commissioner of management and <br/>
<a id="pl.38.3"></a><var>38.3</var>budget regarding the present value dates, discount rate or rates, and schedules of annual <br/>
<a id="pl.38.4"></a><var>38.4</var>amounts. The present value date or dates must be based on the date or dates bonds are <br/>
<a id="pl.38.5"></a><var>38.5</var>sold under section 16A.965, or the date or dates other state funds, if any, are deposited <br/>
<a id="pl.38.6"></a><var>38.6</var>into the construction fund. The discount rate or rates must be based on the true interest <br/>
<a id="pl.38.7"></a><var>38.7</var>cost of the bonds issued under section 16A.965, or an equivalent 30-year bond index, as <br/>
<a id="pl.38.8"></a><var>38.8</var>determined by the commissioner of management and budget. The schedule of annual <br/>
<a id="pl.38.9"></a><var>38.9</var>amounts must be certified to the commissioner by the commissioner of management and <br/>
<a id="pl.38.10"></a><var>38.10</var>budget and the finance officer of the city;<br/>
<a id="pl.38.11"></a><var>38.11</var>(2) for the capital improvement reserve appropriation to stadium authority beginning <br/>
<a id="pl.38.12"></a><var>38.12</var>in calendar year 2021, and for each calendar year thereafter through calendar year 2046, <br/>
<a id="pl.38.13"></a><var>38.13</var>so that not later than January 1, 2022, and as of January 1 of each following year, an <br/>
<a id="pl.38.14"></a><var>38.14</var>aggregate annual amount equal to the amount paid by the state for calendar year 2021, <br/>
<a id="pl.38.15"></a><var>38.15</var>under section 473J.13, subdivision 4, increased each year by an annual adjustment factor;<br/>
<a id="pl.38.16"></a><var>38.16</var>(3) for the operating expense appropriation to stadium authority beginning in <br/>
<a id="pl.38.17"></a><var>38.17</var>calendar year 2021, and for each calendar year thereafter through calendar year 2046, <br/>
<a id="pl.38.18"></a><var>38.18</var>so that not later than January 1, 2022, and as of January 1 of each following year, an <br/>
<a id="pl.38.19"></a><var>38.19</var>aggregate annual amount equal to the amount paid by the state for calendar year 2021 <br/>
<a id="pl.38.20"></a><var>38.20</var>under section 473J.13, subdivision 2, increased each year by an annual adjustment factor;<br/>
<a id="pl.38.21"></a><var>38.21</var>(4) for recapture of NFL team advances for capital improvements and operating <br/>
<a id="pl.38.22"></a><var>38.22</var>expenses for calendar years 2016 through 2020 beginning in calendar year 2021, and <br/>
<a id="pl.38.23"></a><var>38.23</var>for each calendar year thereafter until all amounts under this clause have been paid, <br/>
<a id="pl.38.24"></a><var>38.24</var>proportionate amounts periodically until an aggregate amount equal to the present value of <br/>
<a id="pl.38.25"></a><var>38.25</var>all amounts paid by the NFL team have been deposited in the general fund. To determine <br/>
<a id="pl.38.26"></a><var>38.26</var>the present value of the amounts paid by the NFL team to the authority and the present <br/>
<a id="pl.38.27"></a><var>38.27</var>value of amounts deposited to the general fund under this clause, the commissioner shall <br/>
<a id="pl.38.28"></a><var>38.28</var>consult with the commissioner of management and budget and the NFL team regarding the <br/>
<a id="pl.38.29"></a><var>38.29</var>present value dates, discount rate or rates, and schedule of annual amounts. The present <br/>
<a id="pl.38.30"></a><var>38.30</var>value dates must be based on the dates NFL team funds are paid to the authority, or the <br/>
<a id="pl.38.31"></a><var>38.31</var>dates the commissioner of revenue deposits taxes for purposes of this clause to the general <br/>
<a id="pl.38.32"></a><var>38.32</var>fund. The discount rates must be based on the reasonably equivalent cost of NFL team <br/>
<a id="pl.38.33"></a><var>38.33</var>funds as determined by the commissioner of management and budget after consulting with <br/>
<a id="pl.38.34"></a><var>38.34</var>the NFL team. The schedule of annual amounts must be revised to reflect amounts paid <br/>
<a id="pl.38.35"></a><var>38.35</var>under section 473J.09, subdivision 13, and taxes deposited to the general fund from time <br/>
<a id="pl.38.36"></a><var>38.36</var>to time under this clause, and the schedule and revised schedules must be certified to the <br/>
<a id="pl.39.1"></a><var>39.1</var>commissioner by the commissioner of management and budget and the finance officer <br/>
<a id="pl.39.2"></a><var>39.2</var>of the city, and are transferred as accrued from the general fund to the NFL team, for <br/>
<a id="pl.39.3"></a><var>39.3</var>repayment of advances made by the NFL team to the city of Minneapolis; and<br/>
<a id="pl.39.4"></a><var>39.4</var>(5) to capture increases in taxes imposed under the special law, for the benefit <br/>
<a id="pl.39.5"></a><var>39.5</var>of the stadium authority, beginning in calendar year 2013 and for each calendar year <br/>
<a id="pl.39.6"></a><var>39.6</var>thereafter through 2046, there shall be deposited to the general fund by February 15 of <br/>
<a id="pl.39.7"></a><var>39.7</var>each following year, amounts calculated by the commissioner under this clause. For <br/>
<a id="pl.39.8"></a><var>39.8</var>each year, the commissioner shall determine the excess, if any, of the taxes received <br/>
<a id="pl.39.9"></a><var>39.9</var>by the commissioner over the benchmark scheduled amounts of the taxes, as described <br/>
<a id="pl.39.10"></a><var>39.10</var>in this section. The benchmark scheduled amounts for each year must be based on the <br/>
<a id="pl.39.11"></a><var>39.11</var>actual amount of the taxes for calendar year 2011 inflated for each subsequent year at an <br/>
<a id="pl.39.12"></a><var>39.12</var>annual rate of two percent, according to a schedule certified to the commissioner by the <br/>
<a id="pl.39.13"></a><var>39.13</var>commissioner of management and budget and the finance officer of the city. The amounts <br/>
<a id="pl.39.14"></a><var>39.14</var>to be deposited to the general fund by the commissioner for each year equal:<br/>
<a id="pl.39.15"></a><var>39.15</var>(i) zero for the amount of the taxes for the year up to a scheduled benchmark of <br/>
<a id="pl.39.16"></a><var>39.16</var>$1,000,000, inflated at two percent per year, in excess of the taxes for calendar year 2011;<br/>
<a id="pl.39.17"></a><var>39.17</var>(ii) 50 percent times the difference, if any, by which the amount of the taxes for <br/>
<a id="pl.39.18"></a><var>39.18</var>the year exceeds the scheduled benchmark in item (i), as inflated, but not greater than a <br/>
<a id="pl.39.19"></a><var>39.19</var>scheduled benchmark of $3,000,000, inflated at two percent per year, in excess of the <br/>
<a id="pl.39.20"></a><var>39.20</var>taxes for calendar year 2011; and<br/>
<a id="pl.39.21"></a><var>39.21</var>(iii) 25 percent times the difference, if any, by which the amount of the taxes for the <br/>
<a id="pl.39.22"></a><var>39.22</var>year exceeds the scheduled benchmark of $3,000,000, inflated at two percent per year, in <br/>
<a id="pl.39.23"></a><var>39.23</var>excess of the taxes for calendar year 2011.<br/>
<a id="pl.39.24"></a><var>39.24</var>(b) The annual adjustment factor for purposes of this section and the special law <br/>
<a id="pl.39.25"></a><var>39.25</var>for any year equals the increase, if any, in the amount of these taxes received by the <br/>
<a id="pl.39.26"></a><var>39.26</var>commissioner in the preceding year over the amount received in the year prior to the <br/>
<a id="pl.39.27"></a><var>39.27</var>preceding year, expressed as a percentage of the amount received in the year prior to the <br/>
<a id="pl.39.28"></a><var>39.28</var>preceding year; provided, that the adjustment factor for any year must not be less than <br/>
<a id="pl.39.29"></a><var>39.29</var>zero percent nor more than five percent.<br/>
<br/>
<a id="bill.4.2.0"></a><a id="pl.39.30"></a><var>39.30</var>    Sec. 2. Laws 1986, chapter 396, section 4, as amended by Laws 1987, chapter 55, <br/>
<a id="pl.39.31"></a><var>39.31</var>sections 5 and 6, and Laws 2009, chapter 88, article 4, sections 11 and 12, is amended to <br/>
<a id="pl.39.32"></a><var>39.32</var>read:<br/>
<a id="pl.39.33"></a><var>39.33</var>    Sec. 4. <b>SALES AND USE TAX.</b><br/>
<a id="pl.39.34"></a><var>39.34</var>    Subdivision 1. <b>Imposition.</b> Notwithstanding Minnesota Statutes, section 
         <statute_ref>477A.016</statute_ref>, <br/>
<a id="pl.39.35"></a><var>39.35</var>or any other contrary provision of law, ordinance, or city charter, upon approval by <br/>
<a id="pl.40.1"></a><var>40.1</var>the city's board of estimate and taxation by a vote of at least five members, the city of <br/>
<a id="pl.40.2"></a><var>40.2</var>Minneapolis may by ordinance impose an additional sales tax of up to one-half of one <br/>
<a id="pl.40.3"></a><var>40.3</var>percent on sales taxable pursuant to Minnesota Statutes, chapter 297A that occur within <br/>
<a id="pl.40.4"></a><var>40.4</var>the city, and may also by ordinance impose an additional compensating use tax of up to <br/>
<a id="pl.40.5"></a><var>40.5</var>one-half of one percent on uses of property within the city, the sale of which would be <br/>
<a id="pl.40.6"></a><var>40.6</var>subject to the additional sales tax but for the fact such property was sold outside the city. <br/>
<a id="pl.40.7"></a><var>40.7</var>The tax may not be imposed on gross receipts from sales of intoxicating liquor that are <br/>
<a id="pl.40.8"></a><var>40.8</var>exempt from taxation under sections 
<statute_ref>297A.25</statute_ref> to 
<statute_ref>297A.257</statute_ref> or other any provision of <br/>
<a id="pl.40.9"></a><var>40.9</var>chapter 297A exempting sales of intoxicating liquor and use from taxation, including <br/>
<a id="pl.40.10"></a><var>40.10</var>amendments adopted after enactment of this act.<br/>
<a id="pl.40.11"></a><var>40.11</var>    For purposes of this subdivision, sales that occur within the city shall not include (a) <br/>
<a id="pl.40.12"></a><var>40.12</var>the sale of tangible personal property (i) which, without intermediate use, is shipped or <br/>
<a id="pl.40.13"></a><var>40.13</var>transported outside Minneapolis by the purchaser and thereafter used in a trade or business <br/>
<a id="pl.40.14"></a><var>40.14</var>or is stored, processed, fabricated or manufactured into, attached to or incorporated into <br/>
<a id="pl.40.15"></a><var>40.15</var>other tangible personal property transported or shipped outside Minneapolis and thereafter <br/>
<a id="pl.40.16"></a><var>40.16</var>used in a trade or business outside Minneapolis, and which is not thereafter returned to a <br/>
<a id="pl.40.17"></a><var>40.17</var>point within Minneapolis, except in the course of interstate or intrastate commerce (storage <br/>
<a id="pl.40.18"></a><var>40.18</var>shall not constitute intermediate use); or (ii) which the seller delivers to a common carrier <br/>
<a id="pl.40.19"></a><var>40.19</var>for delivery outside Minneapolis, places in the United States mail or parcel post directed <br/>
<a id="pl.40.20"></a><var>40.20</var>to the purchaser outside Minneapolis, or delivers to the purchaser outside Minneapolis by <br/>
<a id="pl.40.21"></a><var>40.21</var>means of the seller's own delivery vehicles, and which is not thereafter returned to a point <br/>
<a id="pl.40.22"></a><var>40.22</var>within Minneapolis, except in the course of interstate or intrastate commerce; or (b) sales <br/>
<a id="pl.40.23"></a><var>40.23</var>which would be described in clause (e) or (u) of Minnesota Statutes, section 297A.25, <br/>
<a id="pl.40.24"></a><var>40.24</var>subdivision 1 297A.68, subdivision 11 or 16, if the word "Minneapolis" were substituted <br/>
<a id="pl.40.25"></a><var>40.25</var>for the words "Minnesota" or "state of Minnesota" in such clauses subdivisions. A tax <br/>
<a id="pl.40.26"></a><var>40.26</var>may be imposed under this section only if the taxes imposed under section 5 are imposed <br/>
<a id="pl.40.27"></a><var>40.27</var>at the maximum rate allowed under that section. The tax authorized by this section shall <br/>
<a id="pl.40.28"></a><var>40.28</var>be imposed, until December 31, 2046. The tax may be further imposed through December <br/>
<a id="pl.40.29"></a><var>40.29</var>31, 2050, by order of the commissioner of management and budget, as specified under <br/>
<a id="pl.40.30"></a><var>40.30</var>article 7, section 1. The tax may be imposed and may be adjusted periodically by the city <br/>
<a id="pl.40.31"></a><var>40.31</var>council in conformity with Minnesota Statutes, section 297A.99, subdivision 12, such that <br/>
<a id="pl.40.32"></a><var>40.32</var>the rate imposed, rounded to the next highest one-tenth of one percent, does not exceed <br/>
<a id="pl.40.33"></a><var>40.33</var>the rate estimated to be required to produce produces revenue sufficient to finance the <br/>
<a id="pl.40.34"></a><var>40.34</var>costs purposes described in subdivision subdivisions 3 and 4, but in no case may the rate <br/>
<a id="pl.40.35"></a><var>40.35</var>exceed one-half of one percent.<br/>
<a id="pl.41.1"></a><var>41.1</var>    Subd. 2. <b>Enforcement; collection.</b> (a) Except as provided in paragraph (b), <br/>
<a id="pl.41.2"></a><var>41.2</var>these taxes shall be subject to the same interest penalties and other rules imposed <br/>
<a id="pl.41.3"></a><var>41.3</var>under Minnesota Statutes, chapter 297A. The commissioner of revenue may enter into <br/>
<a id="pl.41.4"></a><var>41.4</var>appropriate agreements with the city to provide for collection of these taxes by the state <br/>
<a id="pl.41.5"></a><var>41.5</var>on behalf of the city. The commissioner may charge the city a reasonable fee for its <br/>
<a id="pl.41.6"></a><var>41.6</var>collection from the proceeds of any taxes, as provided in Minnesota Statutes, section <br/>
<a id="pl.41.7"></a><var>41.7</var>297A.99, subdivision 9.<br/>
<a id="pl.41.8"></a><var>41.8</var>    (b) A taxpayer located outside of the city of Minneapolis who collects use tax under <br/>
<a id="pl.41.9"></a><var>41.9</var>this section in an amount that does not exceed $10 in a reporting period is not required to <br/>
<a id="pl.41.10"></a><var>41.10</var>remit that tax until the amount of use tax collected is $10.<br/>
<a id="pl.41.11"></a><var>41.11</var>    Subd. 3. <b>Use of property.</b> Revenues received from the tax may only be used:<br/>
<a id="pl.41.12"></a><var>41.12</var>    (1) to pay costs of collection;<br/>
<a id="pl.41.13"></a><var>41.13</var>    (2) (1) to pay or secure the payment of any principal of, premium or interest on <br/>
<a id="pl.41.14"></a><var>41.14</var>bonds issued in accordance with this act;<br/>
<a id="pl.41.15"></a><var>41.15</var>    (3) (2) to pay costs to acquire, design, equip, construct, improve, maintain, operate, <br/>
<a id="pl.41.16"></a><var>41.16</var>administer, or promote the convention center or related facilities, and other capital projects <br/>
<a id="pl.41.17"></a><var>41.17</var>or economic developments under subdivision 4, including financing costs related to them;<br/>
<a id="pl.41.18"></a><var>41.18</var>    (4) (3) to pay reasonable and appropriate costs determined by the city to replace <br/>
<a id="pl.41.19"></a><var>41.19</var>housing and the ice arena removed from the site; <br/>
<a id="pl.41.20"></a><var>41.20</var>    (5) (4) to maintain reserves for the foregoing purposes deemed reasonable and <br/>
<a id="pl.41.21"></a><var>41.21</var>appropriate by the city; and<br/>
<a id="pl.41.22"></a><var>41.22</var>(6) (5) to fund projects and for other purposes under subdivision 4.<br/>
<a id="pl.41.23"></a><var>41.23</var>    Money for replacement housing shall be made available by the city only for new <br/>
<a id="pl.41.24"></a><var>41.24</var>construction, conversion of nonresidential buildings, and for rehabilitation of vacant <br/>
<a id="pl.41.25"></a><var>41.25</var>residential structures, only if all of the units in the newly constructed building, converted <br/>
<a id="pl.41.26"></a><var>41.26</var>nonresidential building, or rehabilitated residential structure are to be used for replacement <br/>
<a id="pl.41.27"></a><var>41.27</var>housing.<br/>
<a id="pl.41.28"></a><var>41.28</var>    Subd. 4. <b>Minneapolis downtown and neighborhood projects.</b> (a) For revenues <br/>
<a id="pl.41.29"></a><var>41.29</var>collected in calendar years 2009 and 2010, to the extent that revenues from the tax <br/>
<a id="pl.41.30"></a><var>41.30</var>authorized in subdivision 1 exceeds the amount needed to fund the purposes in subdivision <br/>
<a id="pl.41.31"></a><var>41.31</var>3, the city may use the excess revenue to fund any city services. The total amount used in <br/>
<a id="pl.41.32"></a><var>41.32</var>both years for this purpose may not exceed the total amount of aid and credit reductions <br/>
<a id="pl.41.33"></a><var>41.33</var>under Minnesota Statutes, sections 
         <statute_ref>273.1384</statute_ref> and 
         <statute_ref>477A.011</statute_ref> to 
         <statute_ref>477A.014</statute_ref> in calendar years <br/>
<a id="pl.41.34"></a><var>41.34</var>2008, 2009, and 2010 due to a governor's unallotment or due to statutory reductions.<br/>
<a id="pl.41.35"></a><var>41.35</var>(b) Beginning with revenues collected in calendar year 2011, to the extent that <br/>
<a id="pl.41.36"></a><var>41.36</var>revenues from the tax taxes authorized in subdivision 1 exceeds or in section 5 exceed <br/>
<a id="pl.42.1"></a><var>42.1</var>the amount needed to fund the purposes in subdivision 3, the city may use the excess <br/>
<a id="pl.42.2"></a><var>42.2</var>revenue in any year to fund capital projects to further residential, cultural, commercial, <br/>
<a id="pl.42.3"></a><var>42.3</var>and economic development in both downtown Minneapolis and the Minneapolis <br/>
<a id="pl.42.4"></a><var>42.4</var>neighborhoods, to fund other city expenditures in support of the capital projects, or <br/>
<a id="pl.42.5"></a><var>42.5</var>for other economic development, provided the city may direct excess revenue first to <br/>
<a id="pl.42.6"></a><var>42.6</var>convention center debt, operations, capital improvements, and marketing. The city may <br/>
<a id="pl.42.7"></a><var>42.7</var>issue bonds to fund any such projects or improvements using these taxes or any other <br/>
<a id="pl.42.8"></a><var>42.8</var>available city resources to finance or secure the bonds.<br/>
<br/>
<a id="bill.4.3.0"></a><a id="pl.42.9"></a><var>42.9</var>    Sec. 3. Laws 1986, chapter 396, section 5, as amended by Laws 2001, First Special <br/>
<a id="pl.42.10"></a><var>42.10</var>Session chapter 5, article 12, section 87, is amended to read:<br/>
<a id="pl.42.11"></a><var>42.11</var>    Sec. 5. <b>LIQUOR, LODGING, AND RESTAURANT TAXES.</b><br/>
<a id="pl.42.12"></a><var>42.12</var>    The city may, by resolution, levy in addition to taxes authorized by other law:<br/>
<a id="pl.42.13"></a><var>42.13</var>    (1) a sales tax of not more than three percent on the gross receipts on retail on-sales <br/>
<a id="pl.42.14"></a><var>42.14</var>of intoxicating liquor and fermented malt beverages described in section 
<statute_ref>473.592</statute_ref> <br/>
<a id="pl.42.15"></a><var>42.15</var>occurring in the when sold at licensed on-sale liquor establishments located within the <br/>
<a id="pl.42.16"></a><var>42.16</var>downtown taxing area, provided that this tax may not be imposed if sales of intoxicating <br/>
<a id="pl.42.17"></a><var>42.17</var>liquor and fermented malt beverages are exempt from taxation under chapter 297A;<br/>
<a id="pl.42.18"></a><var>42.18</var>    (2) a sales tax of not more than three percent on the gross receipts from the furnishing <br/>
<a id="pl.42.19"></a><var>42.19</var>for consideration of lodging described in section 
<statute_ref>473.592</statute_ref> for a period of less than 30 days <br/>
<a id="pl.42.20"></a><var>42.20</var>at a hotel, motel, rooming house, tourist court, or trailer camp located within the city by a <br/>
<a id="pl.42.21"></a><var>42.21</var>hotel or motel which has more than 50 rooms available for lodging; the tax imposed under <br/>
<a id="pl.42.22"></a><var>42.22</var>this clause shall be at a rate that, when added to the sum of the rate of the sales tax imposed <br/>
<a id="pl.42.23"></a><var>42.23</var>under Minnesota Statutes, chapter 297A, the rate of the sales tax imposed under section 4, <br/>
<a id="pl.42.24"></a><var>42.24</var>and the rate of any other taxes on lodging in the city of Minneapolis, equals 13 percent; and<br/>
<a id="pl.42.25"></a><var>42.25</var>    (3) a sales tax of not more than three percent on the gross receipts on all sales of food <br/>
<a id="pl.42.26"></a><var>42.26</var>primarily for consumption on or off the premises by restaurants and places of refreshment <br/>
<a id="pl.42.27"></a><var>42.27</var>as defined by resolution of the city that occur within the downtown taxing area.<br/>
<a id="pl.42.28"></a><var>42.28</var>The taxes authorized by this section shall be imposed until January 1, 2047. The taxes <br/>
<a id="pl.42.29"></a><var>42.29</var>may be further imposed through December 31, 2050, by order of the commissioner of <br/>
<a id="pl.42.30"></a><var>42.30</var>management and budget, under the authority granted under article 7, section 1. The taxes <br/>
<a id="pl.42.31"></a><var>42.31</var>shall be imposed and may be adjusted periodically by the city council such that the rates <br/>
<a id="pl.42.32"></a><var>42.32</var>imposed, produce revenue sufficient, together with the tax imposed under section 4, to <br/>
<a id="pl.42.33"></a><var>42.33</var>finance the purposes described in section 4, subdivisions 3 and 4. These taxes shall be <br/>
<a id="pl.42.34"></a><var>42.34</var>applied, first, as provided in Minnesota Statutes, section 297A.994, subdivision 3, clauses <br/>
<a id="pl.42.35"></a><var>42.35</var>(1) to (3), and then, solely to pay costs of collection and to pay or, secure, maintain, and <br/>
<a id="pl.43.1"></a><var>43.1</var>fund the payment of any principal of, premium on, and interest on any bonds or any <br/>
<a id="pl.43.2"></a><var>43.2</var>costs referred to other purposes in section 4, subdivision 3 or 4. The commissioner of <br/>
<a id="pl.43.3"></a><var>43.3</var>revenue may enter into appropriate agreements with the city to provide for the collection <br/>
<a id="pl.43.4"></a><var>43.4</var>of these taxes by the state on behalf of the city. The commissioner may charge the city <br/>
<a id="pl.43.5"></a><var>43.5</var>a reasonable fee for its collection from the proceeds of any taxes. These taxes shall be <br/>
<a id="pl.43.6"></a><var>43.6</var>subject to the same interest penalties and enforcement provisions as the taxes imposed <br/>
<a id="pl.43.7"></a><var>43.7</var>under section 
<statute_ref>473.592</statute_ref> Minnesota Statutes, chapter 297A.<br/>
<br/>
<a id="bill.4.4.0"></a><a id="pl.43.8"></a><var>43.8</var>    Sec. 4. <b>EFFECTIVE DATE; LOCAL APPROVAL.</b><br/>
<a id="pl.43.9"></a><var>43.9</var>This article is effective the day after the governing body of the city of Minneapolis <br/>
<a id="pl.43.10"></a><var>43.10</var>and its chief clerical officer comply with Minnesota Statutes, section 645.021, subdivisions <br/>
<a id="pl.43.11"></a><var>43.11</var>2 and 3. Notwithstanding any law to the contrary, the city of Minneapolis and its chief <br/>
<a id="pl.43.12"></a><var>43.12</var>clerical officer have 30 calendar days following final enactment of this act, to comply with <br/>
<a id="pl.43.13"></a><var>43.13</var>Minnesota Statutes, section 645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.4.5.0"></a><a id="pl.43.14"></a><var>43.14</var>    Sec. 5. <b>SEVERABILITY; SAVINGS.</b><br/>
<a id="pl.43.15"></a><var>43.15</var>If any part of this article is found to be invalid because it is in conflict with a <br/>
<a id="pl.43.16"></a><var>43.16</var>provision of the Minnesota Constitution or for any other reason, all other provisions of <br/>
<a id="pl.43.17"></a><var>43.17</var>this article shall remain valid and any rights, remedies, and privileges that have been <br/>
<a id="pl.43.18"></a><var>43.18</var>otherwise accrued by this article, shall remain in effect and may be proceeded with and <br/>
<a id="pl.43.19"></a><var>43.19</var>concluded under the provisions of this article.<br/>
<br/>
<a id="bill.4.6.0"></a><a id="pl.43.20"></a><var>43.20</var>    Sec. 6. <b> LOCAL SALES TAX REQUIREMENTS NOT TO APPLY.</b><br/>
<a id="pl.43.21"></a><var>43.21</var> The taxes authorized under Laws 1986, chapter 396, sections 4 and 5, as amended, <br/>
<a id="pl.43.22"></a><var>43.22</var>are exempt from the requirements of Minnesota Statutes, section 297A.99, subdivisions <br/>
<a id="pl.43.23"></a><var>43.23</var>2 and 3.<br/>
<br/>
<a id="bill.5.0.0"></a>

<a id="bill.5.1.0"></a><a id="pl.43.26"></a><var>43.26</var>    Section 1. Minnesota Statutes 2010, section 297E.01, subdivision 7, is amended to read:<br/>
<a id="pl.43.27"></a><var>43.27</var>    Subd. 7. <b>Gambling product.</b> "Gambling product" means bingo hard cards, bingo <br/>
<a id="pl.43.28"></a><var>43.28</var>paper sheets, or linked bingo paper sheets, or electronic linked bingo games; pull-tabs; <br/>
<a id="pl.43.29"></a><var>43.29</var>electronic pull-tab games; tipboards; paddle tickets and paddle ticket cards; raffle tickets; <br/>
<a id="pl.43.30"></a><var>43.30</var>or any other ticket, card, board, placard, device, or token that represents a chance, for <br/>
<a id="pl.43.31"></a><var>43.31</var>which consideration is paid, to win a prize.<br/>
<a id="pl.44.1"></a><var>44.1</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2012.<br/>
<br/>
<a id="bill.5.2.0"></a><a id="pl.44.2"></a><var>44.2</var>    Sec. 2. Minnesota Statutes 2010, section 297E.01, subdivision 8, is amended to read:<br/>
<a id="pl.44.3"></a><var>44.3</var>    Subd. 8. <b>Gross receipts.</b> "Gross receipts" means all receipts derived from lawful <br/>
<a id="pl.44.4"></a><var>44.4</var>gambling activity including, but not limited to, the following items:<br/>
<a id="pl.44.5"></a><var>44.5</var>(1) gross sales of bingo hard cards and, paper sheets, linked bingo paper sheets, and <br/>
<a id="pl.44.6"></a><var>44.6</var>electronic linked bingo games before reduction for prizes, expenses, shortages, free plays, <br/>
<a id="pl.44.7"></a><var>44.7</var>or any other charges or offsets;<br/>
<a id="pl.44.8"></a><var>44.8</var>(2) the ideal gross of pull-tab, electronic pull-tab games, and tipboard deals or games <br/>
<a id="pl.44.9"></a><var>44.9</var>less the value of unsold and defective tickets and before reduction for prizes, expenses, <br/>
<a id="pl.44.10"></a><var>44.10</var>shortages, free plays, or any other charges or offsets;<br/>
<a id="pl.44.11"></a><var>44.11</var>(3) gross sales of raffle tickets and paddle tickets before reduction for prizes, <br/>
<a id="pl.44.12"></a><var>44.12</var>expenses, shortages, free plays, or any other charges or offsets;<br/>
<a id="pl.44.13"></a><var>44.13</var>(4) admission, commission, cover, or other charges imposed on participants in <br/>
<a id="pl.44.14"></a><var>44.14</var>lawful gambling activity as a condition for or cost of participation; and<br/>
<a id="pl.44.15"></a><var>44.15</var>(5) interest, dividends, annuities, profit from transactions, or other income derived <br/>
<a id="pl.44.16"></a><var>44.16</var>from the accumulation or use of gambling proceeds.<br/>
<a id="pl.44.17"></a><var>44.17</var>Gross receipts does not include proceeds from rental under section 
         <statute_ref>349.18, <br/>
<a id="pl.44.18"></a><var>44.18</var>subdivision 3
         </statute_ref>.<br/>
<a id="pl.44.19"></a><var>44.19</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2012.<br/>
<br/>
<a id="bill.5.3.0"></a><a id="pl.44.20"></a><var>44.20</var>    Sec. 3. Minnesota Statutes 2010, section 297E.01, subdivision 9, is amended to read:<br/>
<a id="pl.44.21"></a><var>44.21</var>    Subd. 9. <b>Ideal gross.</b> "Ideal gross" means the total amount of receipts that would be <br/>
<a id="pl.44.22"></a><var>44.22</var>received if every individual ticket in the pull-tab, electronic pull-tab games or tipboard <br/>
<a id="pl.44.23"></a><var>44.23</var>deal, paddle wheel game, and raffle ticket was sold at its face value. In the calculation <br/>
<a id="pl.44.24"></a><var>44.24</var>of ideal gross and prizes, a free play ticket pull-tab or electronic pull-tab shall be valued <br/>
<a id="pl.44.25"></a><var>44.25</var>at face value. Ideal gross also means the total amount of receipts that would be received <br/>
<a id="pl.44.26"></a><var>44.26</var>if every bingo paper sheet, linked bingo paper sheet, and electronic linked bingo games <br/>
<a id="pl.44.27"></a><var>44.27</var>were sold at face value.<br/>
<a id="pl.44.28"></a><var>44.28</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2012.<br/>
<br/>
<a id="bill.5.4.0"></a><a id="pl.44.29"></a><var>44.29</var>    Sec. 4. Minnesota Statutes 2010, section 297E.02, subdivision 1, is amended to read:<br/>
<a id="pl.44.30"></a><var>44.30</var>    Subdivision 1. <b>Imposition.</b> A tax is imposed on all lawful gambling other than (1) <br/>
<a id="pl.44.31"></a><var>44.31</var>paper or electronic pull-tab deals or games; (2) tipboard deals or games; and (3) electronic <br/>
<a id="pl.44.32"></a><var>44.32</var>linked bingo; and (4) items listed in section 
         <statute_ref>297E.01, subdivision 8</statute_ref>, clauses (4) and (5), at <br/>
<a id="pl.45.1"></a><var>45.1</var>the rate of 8.5 percent on the gross receipts as defined in section 
         <statute_ref>297E.01, subdivision 8</statute_ref>, <br/>
<a id="pl.45.2"></a><var>45.2</var>less prizes actually paid. The tax imposed by this subdivision is in lieu of the tax imposed <br/>
<a id="pl.45.3"></a><var>45.3</var>by section 
         <statute_ref>297A.62</statute_ref> and all local taxes and license fees except a fee authorized under <br/>
<a id="pl.45.4"></a><var>45.4</var>section 
         <statute_ref>349.16, subdivision 8</statute_ref>, or a tax authorized under subdivision 5.<br/>
<a id="pl.45.5"></a><var>45.5</var>The tax imposed under this subdivision is payable by the organization or party <br/>
<a id="pl.45.6"></a><var>45.6</var>conducting, directly or indirectly, the gambling.<br/>
<a id="pl.45.7"></a><var>45.7</var><b>EFFECTIVE DATE.</b>This section is effective for games reported as played after <br/>
<a id="pl.45.8"></a><var>45.8</var>June 30, 2012.<br/>
<br/>
<a id="bill.5.5.0"></a><a id="pl.45.9"></a><var>45.9</var>    Sec. 5. Minnesota Statutes 2010, section 297E.02, subdivision 3, is amended to read:<br/>
<a id="pl.45.10"></a><var>45.10</var>    Subd. 3. <b>Collection; disposition.</b> (a) Taxes imposed by this section other than in <br/>
<a id="pl.45.11"></a><var>45.11</var>subdivision 4 are due and payable to the commissioner when the gambling tax return <br/>
<a id="pl.45.12"></a><var>45.12</var>is required to be filed. Taxes imposed by subdivision 4 are due and payable to the <br/>
<a id="pl.45.13"></a><var>45.13</var>commissioner on or before the last business day of the month following the month in <br/>
<a id="pl.45.14"></a><var>45.14</var>which the taxable sale was made. Distributors must file their monthly sales figures with <br/>
<a id="pl.45.15"></a><var>45.15</var>the commissioner on a form prescribed by the commissioner. Returns covering the taxes <br/>
<a id="pl.45.16"></a><var>45.16</var>imposed under this section must be filed with the commissioner on or before the 20th day <br/>
<a id="pl.45.17"></a><var>45.17</var>of the month following the close of the previous calendar month. The commissioner <br/>
<a id="pl.45.18"></a><var>45.18</var>may require that the returns be filed via magnetic media or electronic data transfer. The <br/>
<a id="pl.45.19"></a><var>45.19</var>proceeds, along with the revenue received from all license fees and other fees under <br/>
<a id="pl.45.20"></a><var>45.20</var>sections 
         <statute_ref>349.11</statute_ref> to 
         <statute_ref>349.191</statute_ref>, 
         <statute_ref>349.211</statute_ref>, and 
         <statute_ref>349.213</statute_ref>, must be paid to the commissioner of <br/>
<a id="pl.45.21"></a><var>45.21</var>management and budget for deposit in the general fund.<br/>
<a id="pl.45.22"></a><var>45.22</var>(b) The sales tax imposed by chapter 297A on the sale of pull-tabs and tipboards by <br/>
<a id="pl.45.23"></a><var>45.23</var>the distributor is imposed on the retail sales price. The retail sale of pull-tabs or tipboards <br/>
<a id="pl.45.24"></a><var>45.24</var>by the organization is exempt from taxes imposed by chapter 297A and is exempt from all <br/>
<a id="pl.45.25"></a><var>45.25</var>local taxes and license fees except a fee authorized under section 349.16, subdivision 8.<br/>
<a id="pl.45.26"></a><var>45.26</var>(c) One-half of one percent of the revenue deposited in the general fund under <br/>
<a id="pl.45.27"></a><var>45.27</var>paragraph (a), is appropriated to the commissioner of human services for the compulsive <br/>
<a id="pl.45.28"></a><var>45.28</var>gambling treatment program established under section 245.98. One-half of one percent <br/>
<a id="pl.45.29"></a><var>45.29</var>of the revenue deposited in the general fund under paragraph (a), is appropriated to <br/>
<a id="pl.45.30"></a><var>45.30</var>the commissioner of human services for a grant to the state affiliate recognized by <br/>
<a id="pl.45.31"></a><var>45.31</var>the National Council on Problem Gambling to increase public awareness of problem <br/>
<a id="pl.45.32"></a><var>45.32</var>gambling, education and training for individuals and organizations providing effective <br/>
<a id="pl.45.33"></a><var>45.33</var>treatment services to problem gamblers and their families, and research relating to problem <br/>
<a id="pl.45.34"></a><var>45.34</var>gambling. Money appropriated by this paragraph must supplement and must not replace <br/>
<a id="pl.45.35"></a><var>45.35</var>existing state funding for these programs.<br/>
<a id="pl.46.1"></a><var>46.1</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2012.<br/>
<br/>
<a id="bill.5.6.0"></a><a id="pl.46.2"></a><var>46.2</var>    Sec. 6. Minnesota Statutes 2010, section 297E.02, subdivision 6, is amended to read:<br/>
<a id="pl.46.3"></a><var>46.3</var>    Subd. 6. <b>Combined </b><b>net </b><b>receipts tax.</b> In addition to the taxes imposed under <br/>
<a id="pl.46.4"></a><var>46.4</var>subdivisions 1 and 4, a tax is imposed on the combined receipts of the organization. As <br/>
<a id="pl.46.5"></a><var>46.5</var>used in this section, "combined net receipts" is the sum of the organization's gross receipts <br/>
<a id="pl.46.6"></a><var>46.6</var>from lawful gambling less gross receipts directly derived from the conduct of paper bingo, <br/>
<a id="pl.46.7"></a><var>46.7</var>raffles, and paddle wheels, as defined in section 
         <statute_ref>297E.01, subdivision 8</statute_ref>, and less the net <br/>
<a id="pl.46.8"></a><var>46.8</var>prizes actually paid, other than prizes actually paid for paper bingo, raffles, and paddle <br/>
<a id="pl.46.9"></a><var>46.9</var>wheels, for the fiscal year. The combined net receipts of an organization are subject to a <br/>
<a id="pl.46.10"></a><var>46.10</var>tax computed according to the following schedule:<br/>
<table>
<col width="50px"/>
<col width="5"/>
<col width="20"/>
<col width="5"/>
<col width="27.5"/>
<col width="7.5"/>
<tr>
<td><a id="pl.46.11"></a><var>46.11</var><br/>
<a id="pl.46.12"></a><var>46.12</var><br/>
<a id="pl.46.13"></a><var>46.13</var><br/>
</td>
<td align="left"></td>
<td align="left">If the combined net <br/>
                  		receipts for the fiscal year <br/>
                  		are:<br/>
</td>
<td align="left"></td>
<td align="left" valign="top">The tax is:<br/>
</td>
<td align="left" valign="top"></td>
</tr>
<tr>
<td><a id="pl.46.14"></a><var>46.14</var><br/>
</td>
<td align="left"></td>
<td align="left" valign="top">Not over $500,000$87,500<br/>
</td>
<td align="left"></td>
<td align="left" valign="top">zero6.89 percent<br/>
</td>
<td align="left"></td>
</tr>
<tr>
<td><a id="pl.46.15"></a><var>46.15</var><br/>
<a id="pl.46.16"></a><var>46.16</var><br/>
<a id="pl.46.17"></a><var>46.17</var><br/>
</td>
<td align="left"></td>
<td align="left" valign="top">Over $500,000$87,500, <br/>
                  		but not over $700,000<br/>
$122,500<br/>
</td>
<td align="left"></td>
<td align="left" valign="top">1.7$6,029 plus 13.78 percent of the <br/>
                  		amount over $500,000$87,500, but <br/>
                  		not over $700,000$122,500<br/>
</td>
<td align="left"></td>
</tr>
<tr>
<td><a id="pl.46.18"></a><var>46.18</var><br/>
<a id="pl.46.19"></a><var>46.19</var><br/>
<a id="pl.46.20"></a><var>46.20</var><br/>
<a id="pl.46.21"></a><var>46.21</var><br/>
</td>
<td align="left"></td>
<td align="left" valign="top">Over $700,000$122,500, <br/>
                  		but not over $900,000<br/>
$157,500<br/>
</td>
<td align="left"></td>
<td align="left" valign="top">$3,400$10,852 plus 3.420.67 <br/>
                  		percent of the amount over $700,000<br/>
$122,500, but not over $900,000<br/>
$157,500<br/>
</td>
<td align="left"></td>
</tr>
<tr>
<td><a id="pl.46.22"></a><var>46.22</var><br/>
<a id="pl.46.23"></a><var>46.23</var><br/>
<a id="pl.46.24"></a><var>46.24</var><br/>
</td>
<td align="left"></td>
<td align="left" valign="top">Over $900,000$157,500<br/>
</td>
<td align="left"></td>
<td align="left" valign="top">$10,200$18,086 plus 5.127.56 <br/>
                  		percent of the amount over $900,000<br/>
$157,500<br/>
</td>
<td align="left"></td>
</tr>
</table><a id="pl.46.25"></a><var>46.25</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2012.<br/>
<br/>
<a id="bill.5.7.0"></a><a id="pl.46.26"></a><var>46.26</var>    Sec. 7. Minnesota Statutes 2010, section 297E.02, is amended by adding a subdivision <br/>
<a id="pl.46.27"></a><var>46.27</var>to read:<br/>
<a id="pl.46.28"></a><var>46.28</var>    Subd. 6a. <b>Unaccounted games.</b> If a licensed distributor cannot account for a <br/>
<a id="pl.46.29"></a><var>46.29</var>pull-tab game, an electronic pull-tab game, a tipboard deal, paddletickets, an electronic <br/>
<a id="pl.46.30"></a><var>46.30</var>linked bingo game, bingo paper sheets, or linked bingo paper sheets, the distributor must <br/>
<a id="pl.46.31"></a><var>46.31</var>report the sheets or games to the commissioner as lost and remit a tax of six percent <br/>
<a id="pl.46.32"></a><var>46.32</var>on the ideal gross of the sheets or games.<br/>
<a id="pl.46.33"></a><var>46.33</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2012.<br/>
<br/>
<a id="bill.5.8.0"></a><a id="pl.46.34"></a><var>46.34</var>    Sec. 8. Minnesota Statutes 2010, section 297E.02, subdivision 7, is amended to read:<br/>
<a id="pl.46.35"></a><var>46.35</var>    Subd. 7. <b>Untaxed gambling product.</b> (a) In addition to penalties or criminal <br/>
<a id="pl.46.36"></a><var>46.36</var>sanctions imposed by this chapter, a person, organization, or business entity possessing or <br/>
<a id="pl.47.1"></a><var>47.1</var>selling a pull-tab, electronic pull-tab game or tipboard upon which the tax imposed by <br/>
<a id="pl.47.2"></a><var>47.2</var>subdivision 4 this chapter has not been paid is liable for a tax of six percent of the ideal <br/>
<a id="pl.47.3"></a><var>47.3</var>gross of each pull-tab, electronic pull-tab game,  or tipboard. The tax on a partial deal <br/>
<a id="pl.47.4"></a><var>47.4</var>must be assessed as if it were a full deal.<br/>
<a id="pl.47.5"></a><var>47.5</var>(b) In addition to penalties and criminal sanctions imposed by this chapter, a person <br/>
<a id="pl.47.6"></a><var>47.6</var>not licensed by the board who conducts bingo, linked bingo, electronic linked bingo, <br/>
<a id="pl.47.7"></a><var>47.7</var>raffles, or paddle wheel games is liable for a tax of six percent of the gross receipts <br/>
<a id="pl.47.8"></a><var>47.8</var>from that activity.<br/>
<a id="pl.47.9"></a><var>47.9</var>(c) The tax must be assessed by the commissioner. An assessment must be <br/>
<a id="pl.47.10"></a><var>47.10</var>considered a jeopardy assessment or jeopardy collection as provided in section 
         <statute_ref>270C.36</statute_ref>. <br/>
<a id="pl.47.11"></a><var>47.11</var>The commissioner shall assess the tax based on personal knowledge or information <br/>
<a id="pl.47.12"></a><var>47.12</var>available to the commissioner. The commissioner shall mail to the taxpayer at the <br/>
<a id="pl.47.13"></a><var>47.13</var>taxpayer's last known address, or serve in person, a written notice of the amount of tax, <br/>
<a id="pl.47.14"></a><var>47.14</var>demand its immediate payment, and, if payment is not immediately made, collect the tax <br/>
<a id="pl.47.15"></a><var>47.15</var>by any method described in chapter 270C, except that the commissioner need not await the <br/>
<a id="pl.47.16"></a><var>47.16</var>expiration of the times specified in chapter 270C. The tax assessed by the commissioner <br/>
<a id="pl.47.17"></a><var>47.17</var>is presumed to be valid and correctly determined and assessed. The burden is upon the <br/>
<a id="pl.47.18"></a><var>47.18</var>taxpayer to show its incorrectness or invalidity. The tax imposed under this subdivision <br/>
<a id="pl.47.19"></a><var>47.19</var>does not apply to gambling that is exempt from taxation under subdivision 2.<br/>
<a id="pl.47.20"></a><var>47.20</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2012.<br/>
<br/>
<a id="bill.5.9.0"></a><a id="pl.47.21"></a><var>47.21</var>    Sec. 9. Minnesota Statutes 2010, section 297E.02, subdivision 10, is amended to read:<br/>
<a id="pl.47.22"></a><var>47.22</var>    Subd. 10. <b>Refunds; appropriation.</b> A person who has, under this chapter, paid <br/>
<a id="pl.47.23"></a><var>47.23</var>to the commissioner an amount of tax for a period in excess of the amount legally due <br/>
<a id="pl.47.24"></a><var>47.24</var>for that period, may file with the commissioner a claim for a refund of the excess. The <br/>
<a id="pl.47.25"></a><var>47.25</var>amount necessary to pay the refunds under this subdivision and subdivision 4, paragraph <br/>
<a id="pl.47.26"></a><var>47.26</var>(d), is appropriated from the general fund to the commissioner.<br/>
<a id="pl.47.27"></a><var>47.27</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2012.<br/>
<br/>
<a id="bill.5.10.0"></a><a id="pl.47.28"></a><var>47.28</var>    Sec. 10. Minnesota Statutes 2010, section 297E.02, subdivision 11, is amended to read:<br/>
<a id="pl.47.29"></a><var>47.29</var>    Subd. 11. <b>Unplayed or</b><b> Defective </b><b>pull-tabs or tipboards</b><b> gambling products</b><b>.</b> If a <br/>
<a id="pl.47.30"></a><var>47.30</var>deal of pull-tabs or tipboards registered with the board or bar coded in accordance with this <br/>
<a id="pl.47.31"></a><var>47.31</var>chapter and chapter 349 and upon which the tax imposed by subdivision 4 has been paid is <br/>
<a id="pl.47.32"></a><var>47.32</var>returned unplayed to the distributor, the commissioner shall allow a refund of the tax paid.<br/>
<a id="pl.48.1"></a><var>48.1</var>If a defective deal registered with the board or bar coded in accordance with this <br/>
<a id="pl.48.2"></a><var>48.2</var>chapter and chapter 349 and upon which the taxes have been paid is returned to the <br/>
<a id="pl.48.3"></a><var>48.3</var>manufacturer, the distributor shall submit to the commissioner of revenue certification <br/>
<a id="pl.48.4"></a><var>48.4</var>from the manufacturer that the deal was returned and in what respect it was defective. <br/>
<a id="pl.48.5"></a><var>48.5</var>The certification must be on a form prescribed by the commissioner and must contain <br/>
<a id="pl.48.6"></a><var>48.6</var>additional information the commissioner requires.<br/>
<a id="pl.48.7"></a><var>48.7</var>The commissioner may require that no refund under this subdivision be made <br/>
<a id="pl.48.8"></a><var>48.8</var>unless the that all defective and returned pull-tabs or, tipboards have been, paddle tickets, <br/>
<a id="pl.48.9"></a><var>48.9</var>paper bingo sheets, and linked bingo paper sheets be set aside for inspection by the <br/>
<a id="pl.48.10"></a><var>48.10</var>commissioner's employee.<br/>
<a id="pl.48.11"></a><var>48.11</var>Reductions in previously paid taxes authorized by this subdivision must be made <br/>
<a id="pl.48.12"></a><var>48.12</var>when and in the manner prescribed by the commissioner.<br/>
<a id="pl.48.13"></a><var>48.13</var><b>EFFECTIVE DATE.</b>This section is effective for games sold by a licensed <br/>
<a id="pl.48.14"></a><var>48.14</var>distributor after June 30, 2012.<br/>
<br/>
<a id="bill.5.11.0"></a><a id="pl.48.15"></a><var>48.15</var>    Sec. 11. Minnesota Statutes 2010, section 297E.13, subdivision 5, is amended to read:<br/>
<a id="pl.48.16"></a><var>48.16</var>    Subd. 5. <b>Untaxed gambling equipment.</b> It is a gross misdemeanor for a person to <br/>
<a id="pl.48.17"></a><var>48.17</var>possess gambling equipment for resale in this state that has not been stamped or bar-coded <br/>
<a id="pl.48.18"></a><var>48.18</var>in accordance with this chapter and chapter 349 and upon which the taxes imposed by <br/>
<a id="pl.48.19"></a><var>48.19</var>chapter 297A or section 
         <statute_ref>297E.02, subdivision 4</statute_ref>, have not been paid. The director of <br/>
<a id="pl.48.20"></a><var>48.20</var>alcohol and gambling enforcement or the commissioner or the designated inspectors <br/>
<a id="pl.48.21"></a><var>48.21</var>and employees of the director or commissioner may seize in the name of the state of <br/>
<a id="pl.48.22"></a><var>48.22</var>Minnesota any unregistered or untaxed gambling equipment.<br/>
<a id="pl.48.23"></a><var>48.23</var><b>EFFECTIVE DATE.</b>This section is effective for actions occurring after June <br/>
<a id="pl.48.24"></a><var>48.24</var>30, 2012.<br/>
<br/>
<a id="bill.5.12.0"></a><a id="pl.48.25"></a><var>48.25</var>    Sec. 12. Minnesota Statutes 2010, section 349.12, subdivision 3b, is amended to read:<br/>
<a id="pl.48.26"></a><var>48.26</var>    Subd. 3b. <b>Bar operation.</b> "Bar operation" means a method of selling and redeeming <br/>
<a id="pl.48.27"></a><var>48.27</var>disposable gambling equipment by an employee of the lessor within a leased premises <br/>
<a id="pl.48.28"></a><var>48.28</var>which is licensed for the on-sale of alcoholic beverages where such sales and redemptions <br/>
<a id="pl.48.29"></a><var>48.29</var>are made by an employee of the lessor from a common area where food and beverages <br/>
<a id="pl.48.30"></a><var>48.30</var>are also sold.<br/>
<br/>
<a id="bill.5.13.0"></a><a id="pl.48.31"></a><var>48.31</var>    Sec. 13. Minnesota Statutes 2010, section 349.12, subdivision 3c, is amended to read:<br/>
<a id="pl.49.1"></a><var>49.1</var>    Subd. 3c. <b>Bar bingo.</b> "Bar bingo" is a bingo occasion conducted at a permitted <br/>
<a id="pl.49.2"></a><var>49.2</var>premises in an area where intoxicating liquor or 3.2 percent malt beverages are sold and <br/>
<a id="pl.49.3"></a><var>49.3</var>where the licensed organization conducts another form of lawful gambling. Bar bingo <br/>
<a id="pl.49.4"></a><var>49.4</var>does not include bingo games linked to other permitted premises.<br/>
<br/>
<a id="bill.5.14.0"></a><a id="pl.49.5"></a><var>49.5</var>    Sec. 14. Minnesota Statutes 2010, section 349.12, subdivision 5, is amended to read:<br/>
<a id="pl.49.6"></a><var>49.6</var>    Subd. 5. <b>Bingo occasion.</b> "Bingo occasion" means a single gathering or session at <br/>
<a id="pl.49.7"></a><var>49.7</var>which a series of one or more successive bingo games is played. There is no limit on the <br/>
<a id="pl.49.8"></a><var>49.8</var>number of games conducted during a bingo occasion but. A bingo occasion must not last <br/>
<a id="pl.49.9"></a><var>49.9</var>longer than eight consecutive hours., except that linked bingo games played on electronic <br/>
<a id="pl.49.10"></a><var>49.10</var>bingo devices may be played during regular business hours of the permitted premises, <br/>
<a id="pl.49.11"></a><var>49.11</var>and all play during this period is considered a bingo occasion for reporting purposes. For <br/>
<a id="pl.49.12"></a><var>49.12</var>permitted premises where the primary business is bingo, regular business hours shall be <br/>
<a id="pl.49.13"></a><var>49.13</var>defined as the hours between 8:00 a.m. and 2:00 a.m.<br/>
<br/>
<a id="bill.5.15.0"></a><a id="pl.49.14"></a><var>49.14</var>    Sec. 15. Minnesota Statutes 2010, section 349.12, subdivision 6a, is amended to read:<br/>
<a id="pl.49.15"></a><var>49.15</var>    Subd. 6a. <b>Booth operation.</b> "Booth operation" means a method of selling and <br/>
<a id="pl.49.16"></a><var>49.16</var>redeeming disposable gambling equipment by an employee of a licensed organization in <br/>
<a id="pl.49.17"></a><var>49.17</var>a premises the organization leases or owns where such sales and redemptions are made <br/>
<a id="pl.49.18"></a><var>49.18</var>within a separate enclosure that is distinct from areas where food and beverages are sold.<br/>
<br/>
<a id="bill.5.16.0"></a><a id="pl.49.19"></a><var>49.19</var>    Sec. 16. Minnesota Statutes 2010, section 349.12, subdivision 12a, is amended to read:<br/>
<a id="pl.49.20"></a><var>49.20</var>    Subd. 12a. <b>Electronic bingo device.</b> "Electronic bingo device" means an a <br/>
<a id="pl.49.21"></a><var>49.21</var>handheld and portable electronic device that:<br/>
<a id="pl.49.22"></a><var>49.22</var>(a) is used by a bingo player to:<br/>
<a id="pl.49.23"></a><var>49.23</var>(1) monitor bingo paper sheets or a facsimile of a bingo paper sheet when purchased <br/>
<a id="pl.49.24"></a><var>49.24</var>and played at the time and place of an organization's bingo occasion and which (1) <br/>
<a id="pl.49.25"></a><var>49.25</var>provides a means for bingo players to, or to play an electronic bingo game that is linked <br/>
<a id="pl.49.26"></a><var>49.26</var>with other permitted premises;<br/>
<a id="pl.49.27"></a><var>49.27</var>(2) activate numbers announced by a bingo caller; (2) compares or displayed, and <br/>
<a id="pl.49.28"></a><var>49.28</var>to compare the numbers entered by the player to the bingo faces previously stored in <br/>
<a id="pl.49.29"></a><var>49.29</var>the memory of the device; and <br/>
<a id="pl.49.30"></a><var>49.30</var>(3) identifies identify a winning bingo pattern. or game requirement; and<br/>
<a id="pl.49.31"></a><var>49.31</var>(4) play against other bingo players;<br/>
<a id="pl.49.32"></a><var>49.32</var>(b) limits the play of bingo faces to 36 faces per game;<br/>
<a id="pl.50.1"></a><var>50.1</var>(c) requires coded entry to activate play but does not allow the use of a coin, <br/>
<a id="pl.50.2"></a><var>50.2</var>currency, or tokens to be inserted to activate play;<br/>
<a id="pl.50.3"></a><var>50.3</var>(d) may only be used for play against other bingo players in a bingo game;<br/>
<a id="pl.50.4"></a><var>50.4</var>(e) has no additional function as an amusement or gambling device other than as an <br/>
<a id="pl.50.5"></a><var>50.5</var>electronic pull-tab game defined under section 349.12, subdivision 12c;<br/>
<a id="pl.50.6"></a><var>50.6</var>(f) has the capability to ensure adequate levels of security internal controls;<br/>
<a id="pl.50.7"></a><var>50.7</var>(g) has the capability to permit the board to electronically monitor the operation of <br/>
<a id="pl.50.8"></a><var>50.8</var>the device and the internal accounting systems; and<br/>
<a id="pl.50.9"></a><var>50.9</var>(h) has the capability to allow use by a player who is visually impaired.<br/>
<a id="pl.50.10"></a><var>50.10</var>Electronic bingo device does not mean any device into which coin, currency, or tokens are <br/>
<a id="pl.50.11"></a><var>50.11</var>inserted to activate play.<br/>
<br/>
<a id="bill.5.17.0"></a><a id="pl.50.12"></a><var>50.12</var>    Sec. 17. Minnesota Statutes 2010, section 349.12, is amended by adding a subdivision <br/>
<a id="pl.50.13"></a><var>50.13</var>to read:<br/>
<a id="pl.50.14"></a><var>50.14</var>    Subd. 12b. <b>Electronic pull-tab device.</b> "Electronic pull-tab device" means a <br/>
<a id="pl.50.15"></a><var>50.15</var>handheld and portable electronic device that:<br/>
<a id="pl.50.16"></a><var>50.16</var>(a) is used to play one or more electronic pull-tab games;<br/>
<a id="pl.50.17"></a><var>50.17</var>(b) requires coded entry to activate play but does not allow the use of coin, currency, <br/>
<a id="pl.50.18"></a><var>50.18</var>or tokens to be inserted to activate play; <br/>
<a id="pl.50.19"></a><var>50.19</var>(c) requires that a player must activate or open each electronic pull-tab ticket and <br/>
<a id="pl.50.20"></a><var>50.20</var>each individual line, row, or column of each electronic pull-tab ticket; <br/>
<a id="pl.50.21"></a><var>50.21</var>(d) maintains information pertaining to accumulated win credits that may be applied <br/>
<a id="pl.50.22"></a><var>50.22</var>to games in play or redeemed upon termination of play;<br/>
<a id="pl.50.23"></a><var>50.23</var>(e) has no spinning symbols or other representations that mimic a video slot machine;<br/>
<a id="pl.50.24"></a><var>50.24</var>(f) has no additional function as a gambling device other than as an electronic linked <br/>
<a id="pl.50.25"></a><var>50.25</var>bingo game played on a device defined under section 349.12, subdivision 12a;<br/>
<a id="pl.50.26"></a><var>50.26</var>(g) may incorporate an amusement game feature as part of the pull-tab game but <br/>
<a id="pl.50.27"></a><var>50.27</var>may not require additional consideration for that feature or award any prize, or other <br/>
<a id="pl.50.28"></a><var>50.28</var>benefit for that feature;<br/>
<a id="pl.50.29"></a><var>50.29</var>(h) may have auditory or visual enhancements to promote or provide information <br/>
<a id="pl.50.30"></a><var>50.30</var>about the game being played, provided the component does not affect the outcome of <br/>
<a id="pl.50.31"></a><var>50.31</var>a game or display the results of a game;<br/>
<a id="pl.50.32"></a><var>50.32</var>(i) maintains, on nonresettable meters, a printable, permanent record of all <br/>
<a id="pl.50.33"></a><var>50.33</var>transactions involving each device electronic pull-tab games played on the device;<br/>
<a id="pl.50.34"></a><var>50.34</var>(j) is not a pull-tab dispensing device as defined under subdivision 32a; and<br/>
<a id="pl.50.35"></a><var>50.35</var>(k) has the capability to allow use by a player who is visually impaired.<br/>
<br/>
<a id="bill.5.18.0"></a><a id="pl.51.1"></a><var>51.1</var>    Sec. 18. Minnesota Statutes 2010, section 349.12, is amended by adding a subdivision <br/>
<a id="pl.51.2"></a><var>51.2</var>to read:<br/>
<a id="pl.51.3"></a><var>51.3</var>    Subd. 12c. <b>Electronic pull-tab game.</b> "Electronic pull-tab game" means a pull-tab <br/>
<a id="pl.51.4"></a><var>51.4</var>game containing:<br/>
<a id="pl.51.5"></a><var>51.5</var>(a) facsimiles of pull-tab tickets that are played on an electronic pull-tab device;<br/>
<a id="pl.51.6"></a><var>51.6</var>(b) a predetermined, finite number of winning and losing tickets, not to exceed <br/>
<a id="pl.51.7"></a><var>51.7</var>7,500 tickets;<br/>
<a id="pl.51.8"></a><var>51.8</var>(c) the same price for each ticket in the game;<br/>
<a id="pl.51.9"></a><var>51.9</var>(d) a price paid by the player of not less than 25 cents per ticket;<br/>
<a id="pl.51.10"></a><var>51.10</var>(e) tickets that are in conformance with applicable board rules for pull-tabs;<br/>
<a id="pl.51.11"></a><var>51.11</var>(f) winning tickets that comply with prize limits under section 349.211;<br/>
<a id="pl.51.12"></a><var>51.12</var>(g) a unique serial number that may not be regenerated;<br/>
<a id="pl.51.13"></a><var>51.13</var>(h) an electronic flare that displays the game name, form number, predetermined, <br/>
<a id="pl.51.14"></a><var>51.14</var>finite number of tickets in the game, and prize tier; and<br/>
<a id="pl.51.15"></a><var>51.15</var>(i) no spinning symbols or other representations that mimic a video slot machine.<br/>
<br/>
<a id="bill.5.19.0"></a><a id="pl.51.16"></a><var>51.16</var>    Sec. 19. Minnesota Statutes 2010, section 349.12, is amended by adding a subdivision <br/>
<a id="pl.51.17"></a><var>51.17</var>to read:<br/>
<a id="pl.51.18"></a><var>51.18</var>    Subd. 12d. <b>Electronic pull-tab game system.</b> "Electronic pull-tab game system" <br/>
<a id="pl.51.19"></a><var>51.19</var>means the equipment leased from a licensed distributor and used by a licensed organization <br/>
<a id="pl.51.20"></a><var>51.20</var>to conduct, manage, and record electronic pull-tab games, and to report and transmit the <br/>
<a id="pl.51.21"></a><var>51.21</var>game results as prescribed by the board and the Department of Revenue. The system must <br/>
<a id="pl.51.22"></a><var>51.22</var>provide security and access levels sufficient so that internal control objectives are met as <br/>
<a id="pl.51.23"></a><var>51.23</var>prescribed by the board. The system must contain a point of sale station.<br/>
<br/>
<a id="bill.5.20.0"></a><a id="pl.51.24"></a><var>51.24</var>    Sec. 20. Minnesota Statutes 2010, section 349.12, subdivision 18, is amended to read:<br/>
<a id="pl.51.25"></a><var>51.25</var>    Subd. 18. <b>Gambling equipment.</b> "Gambling equipment" means: gambling <br/>
<a id="pl.51.26"></a><var>51.26</var>equipment that is either disposable or permanent gambling equipment. <br/>
<a id="pl.51.27"></a><var>51.27</var>(a) Disposable gambling equipment includes the following:<br/>
<a id="pl.51.28"></a><var>51.28</var>(1) bingo hard cards or paper sheets, including linked bingo paper sheets, devices for <br/>
<a id="pl.51.29"></a><var>51.29</var>selecting bingo numbers, electronic bingo devices,;<br/>
<a id="pl.51.30"></a><var>51.30</var>(2) paper and electronic pull-tabs,;<br/>
<a id="pl.51.31"></a><var>51.31</var>(3) jar tickets, paddle wheels, paddle wheel tables,;<br/>
<a id="pl.51.32"></a><var>51.32</var>(4) paddle tickets, and paddle ticket cards,;<br/>
<a id="pl.51.33"></a><var>51.33</var>(5) tipboards, and tipboard tickets,; and <br/>
<a id="pl.52.1"></a><var>52.1</var>(6) promotional tickets that mimic a pull-tab or tipboard, pull-tab dispensing devices, <br/>
<a id="pl.52.2"></a><var>52.2</var>and programmable electronic devices that have no effect on the outcome of a game and <br/>
<a id="pl.52.3"></a><var>52.3</var>are used to provide a visual or auditory enhancement of a game.<br/>
<a id="pl.52.4"></a><var>52.4</var>(b) Permanent gambling equipment includes the following:<br/>
<a id="pl.52.5"></a><var>52.5</var>(1) devices for selecting bingo numbers;<br/>
<a id="pl.52.6"></a><var>52.6</var>(2) electronic bingo devices;<br/>
<a id="pl.52.7"></a><var>52.7</var>(3) electronic pull-tab devices;<br/>
<a id="pl.52.8"></a><var>52.8</var>(4) pull-tab dispensing devices;<br/>
<a id="pl.52.9"></a><var>52.9</var>(5) programmable electronic devices that have no effect on the outcome of a game <br/>
<a id="pl.52.10"></a><var>52.10</var>and are used to provide a visual or auditory enhancement of a game;<br/>
<a id="pl.52.11"></a><var>52.11</var>(6) paddle wheels; and<br/>
<a id="pl.52.12"></a><var>52.12</var>(7) paddle wheel tables.<br/>
<br/>
<a id="bill.5.21.0"></a><a id="pl.52.13"></a><var>52.13</var>    Sec. 21. Minnesota Statutes 2010, section 349.12, subdivision 25, is amended to read:<br/>
<a id="pl.52.14"></a><var>52.14</var>    Subd. 25. <b>Lawful purpose.</b> (a) "Lawful purpose" means one or more of the <br/>
<a id="pl.52.15"></a><var>52.15</var>following:<br/>
<a id="pl.52.16"></a><var>52.16</var>    (1) any expenditure by or contribution to a 501(c)(3) or festival organization, as <br/>
<a id="pl.52.17"></a><var>52.17</var>defined in subdivision 15a, provided that the organization and expenditure or contribution <br/>
<a id="pl.52.18"></a><var>52.18</var>are in conformity with standards prescribed by the board under section 
         <statute_ref>349.154</statute_ref>, which <br/>
<a id="pl.52.19"></a><var>52.19</var>standards must apply to both types of organizations in the same manner and to the same <br/>
<a id="pl.52.20"></a><var>52.20</var>extent;<br/>
<a id="pl.52.21"></a><var>52.21</var>    (2) a contribution to or expenditure for goods and services for an individual or <br/>
<a id="pl.52.22"></a><var>52.22</var>family suffering from poverty, homelessness, or disability, which is used to relieve the <br/>
<a id="pl.52.23"></a><var>52.23</var>effects of that suffering;<br/>
<a id="pl.52.24"></a><var>52.24</var>    (3) a contribution to a program recognized by the Minnesota Department of Human <br/>
<a id="pl.52.25"></a><var>52.25</var>Services for the education, prevention, or treatment of problem gambling;<br/>
<a id="pl.52.26"></a><var>52.26</var>    (4) a contribution to or expenditure on a public or private nonprofit educational <br/>
<a id="pl.52.27"></a><var>52.27</var>institution registered with or accredited by this state or any other state;<br/>
<a id="pl.52.28"></a><var>52.28</var>    (5) a contribution to an individual, public or private nonprofit educational institution <br/>
<a id="pl.52.29"></a><var>52.29</var>registered with or accredited by this state or any other state, or to a scholarship fund of a <br/>
<a id="pl.52.30"></a><var>52.30</var>nonprofit organization whose primary mission is to award scholarships, for defraying the <br/>
<a id="pl.52.31"></a><var>52.31</var>cost of education to individuals where the funds are awarded through an open and fair <br/>
<a id="pl.52.32"></a><var>52.32</var>selection process;<br/>
<a id="pl.52.33"></a><var>52.33</var>    (6) activities by an organization or a government entity which recognize military <br/>
<a id="pl.52.34"></a><var>52.34</var>service to the United States, the state of Minnesota, or a community, subject to rules <br/>
<a id="pl.52.35"></a><var>52.35</var>of the board, provided that the rules must not include mileage reimbursements in the <br/>
<a id="pl.53.1"></a><var>53.1</var>computation of the per diem reimbursement limit and must impose no aggregate annual <br/>
<a id="pl.53.2"></a><var>53.2</var>limit on the amount of reasonable and necessary expenditures made to support:<br/>
<a id="pl.53.3"></a><var>53.3</var>    (i) members of a military marching or color guard unit for activities conducted <br/>
<a id="pl.53.4"></a><var>53.4</var>within the state;<br/>
<a id="pl.53.5"></a><var>53.5</var>    (ii) members of an organization solely for services performed by the members at <br/>
<a id="pl.53.6"></a><var>53.6</var>funeral services;<br/>
<a id="pl.53.7"></a><var>53.7</var>    (iii) members of military marching, color guard, or honor guard units may be <br/>
<a id="pl.53.8"></a><var>53.8</var>reimbursed for participating in color guard, honor guard, or marching unit events within <br/>
<a id="pl.53.9"></a><var>53.9</var>the state or states contiguous to Minnesota at a per participant rate of up to $35 per diem; or<br/>
<a id="pl.53.10"></a><var>53.10</var>    (iv) active military personnel and their immediate family members in need of <br/>
<a id="pl.53.11"></a><var>53.11</var>support services;<br/>
<a id="pl.53.12"></a><var>53.12</var>    (7) recreational, community, and athletic facilities and activities intended primarily <br/>
<a id="pl.53.13"></a><var>53.13</var>for persons under age 21, provided that such facilities and activities do not discriminate on <br/>
<a id="pl.53.14"></a><var>53.14</var>the basis of gender and the organization complies with section 
         <statute_ref>349.154, subdivision 3a</statute_ref>;<br/>
<a id="pl.53.15"></a><var>53.15</var>    (8) payment of local taxes authorized under this chapter, taxes imposed by the <br/>
<a id="pl.53.16"></a><var>53.16</var>United States on receipts from lawful gambling, the taxes imposed by section 
         <statute_ref>297E.02</statute_ref>, <br/>
<a id="pl.53.17"></a><var>53.17</var>subdivisions 1, 4, 5, and 6, and the tax imposed on unrelated business income by section <br/>
<statute_ref><a id="pl.53.18"></a><var>53.18</var>290.05, subdivision 3
         </statute_ref>;<br/>
<a id="pl.53.19"></a><var>53.19</var>    (9) payment of real estate taxes and assessments on permitted gambling premises <br/>
<a id="pl.53.20"></a><var>53.20</var>owned by the licensed organization paying the taxes, or wholly leased by a licensed <br/>
<a id="pl.53.21"></a><var>53.21</var>veterans organization under a national charter recognized under section 501(c)(19) of the <br/>
<a id="pl.53.22"></a><var>53.22</var>Internal Revenue Code;<br/>
<a id="pl.53.23"></a><var>53.23</var>    (10) a contribution to the United States, this state or any of its political subdivisions, <br/>
<a id="pl.53.24"></a><var>53.24</var>or any agency or instrumentality thereof other than a direct contribution to a law <br/>
<a id="pl.53.25"></a><var>53.25</var>enforcement or prosecutorial agency;<br/>
<a id="pl.53.26"></a><var>53.26</var>    (11) a contribution to or expenditure by a nonprofit organization which is a church <br/>
<a id="pl.53.27"></a><var>53.27</var>or body of communicants gathered in common membership for mutual support and <br/>
<a id="pl.53.28"></a><var>53.28</var>edification in piety, worship, or religious observances;<br/>
<a id="pl.53.29"></a><var>53.29</var>    (12) an expenditure for citizen monitoring of surface water quality by individuals <br/>
<a id="pl.53.30"></a><var>53.30</var>or nongovernmental organizations that is consistent with section 
         <statute_ref>115.06, subdivision 4</statute_ref>, <br/>
<a id="pl.53.31"></a><var>53.31</var>and Minnesota Pollution Control Agency guidance on monitoring procedures, quality <br/>
<a id="pl.53.32"></a><var>53.32</var>assurance protocols, and data management, provided that the resulting data is submitted <br/>
<a id="pl.53.33"></a><var>53.33</var>to the Minnesota Pollution Control Agency for review and inclusion in the state water <br/>
<a id="pl.53.34"></a><var>53.34</var>quality database;<br/>
<a id="pl.53.35"></a><var>53.35</var>    (13) a contribution to or expenditure on projects or activities approved by the <br/>
<a id="pl.53.36"></a><var>53.36</var>commissioner of natural resources for:<br/>
<a id="pl.54.1"></a><var>54.1</var>    (i) wildlife management projects that benefit the public at large;<br/>
<a id="pl.54.2"></a><var>54.2</var>    (ii) grant-in-aid trail maintenance and grooming established under sections 
         <statute_ref>84.83 <br/>
</statute_ref><a id="pl.54.3"></a><var>54.3</var>and 
         <statute_ref>84.927</statute_ref>, and other trails open to public use, including purchase or lease of equipment <br/>
<a id="pl.54.4"></a><var>54.4</var>for this purpose; and<br/>
<a id="pl.54.5"></a><var>54.5</var>    (iii) supplies and materials for safety training and educational programs coordinated <br/>
<a id="pl.54.6"></a><var>54.6</var>by the Department of Natural Resources, including the Enforcement Division;<br/>
<a id="pl.54.7"></a><var>54.7</var>    (14) conducting nutritional programs, food shelves, and congregate dining programs <br/>
<a id="pl.54.8"></a><var>54.8</var>primarily for persons who are age 62 or older or disabled;<br/>
<a id="pl.54.9"></a><var>54.9</var>    (15) a contribution to a community arts organization, or an expenditure to sponsor <br/>
<a id="pl.54.10"></a><var>54.10</var>arts programs in the community, including but not limited to visual, literary, performing, <br/>
<a id="pl.54.11"></a><var>54.11</var>or musical arts;<br/>
<a id="pl.54.12"></a><var>54.12</var>    (16) an expenditure by a licensed fraternal organization or a licensed veterans <br/>
<a id="pl.54.13"></a><var>54.13</var>organization for payment of water, fuel for heating, electricity, and sewer costs for:<br/>
<a id="pl.54.14"></a><var>54.14</var>    (i) up to 100 percent for a building wholly owned or wholly leased by and used as <br/>
<a id="pl.54.15"></a><var>54.15</var>the primary headquarters of the licensed veteran or fraternal organization; or<br/>
<a id="pl.54.16"></a><var>54.16</var>    (ii) a proportional amount subject to approval by the director and based on the <br/>
<a id="pl.54.17"></a><var>54.17</var>portion of a building used as the primary headquarters of the licensed veteran or fraternal <br/>
<a id="pl.54.18"></a><var>54.18</var>organization;<br/>
<a id="pl.54.19"></a><var>54.19</var>    (17) expenditure by a licensed veterans organization of up to $5,000 in a calendar <br/>
<a id="pl.54.20"></a><var>54.20</var>year in net costs to the organization for meals and other membership events, limited to <br/>
<a id="pl.54.21"></a><var>54.21</var>members and spouses, held in recognition of military service. No more than $5,000 can be <br/>
<a id="pl.54.22"></a><var>54.22</var>expended in total per calendar year under this clause by all licensed veterans organizations <br/>
<a id="pl.54.23"></a><var>54.23</var>sharing the same veterans post home;<br/>
<a id="pl.54.24"></a><var>54.24</var>    (18) payment of fees authorized under this chapter imposed by the state of Minnesota <br/>
<a id="pl.54.25"></a><var>54.25</var>to conduct lawful gambling in Minnesota;<br/>
<a id="pl.54.26"></a><var>54.26</var>    (19) a contribution or expenditure to honor an individual's humanitarian service <br/>
<a id="pl.54.27"></a><var>54.27</var>as demonstrated through philanthropy or volunteerism to the United States, this state, <br/>
<a id="pl.54.28"></a><var>54.28</var>or local community;<br/>
<a id="pl.54.29"></a><var>54.29</var>    (20) a contribution by a licensed organization to another licensed organization with <br/>
<a id="pl.54.30"></a><var>54.30</var>prior board approval, with the contribution designated to be used for one or more of the <br/>
<a id="pl.54.31"></a><var>54.31</var>following lawful purposes under this section: clauses (1) to (7), (11) to (15), (19), and (25);<br/>
<a id="pl.54.32"></a><var>54.32</var>    (21) an expenditure that is a contribution to a parent organization, if the parent <br/>
<a id="pl.54.33"></a><var>54.33</var>organization: (i) has not provided to the contributing organization within one year of the <br/>
<a id="pl.54.34"></a><var>54.34</var>contribution any money, grants, property, or other thing of value, and (ii) has received <br/>
<a id="pl.54.35"></a><var>54.35</var>prior board approval for the contribution that will be used for a program that meets one or <br/>
<a id="pl.54.36"></a><var>54.36</var>more of the lawful purposes under subdivision 7a;<br/>
<a id="pl.55.1"></a><var>55.1</var>    (22) an expenditure for the repair, maintenance, or improvement of real property <br/>
<a id="pl.55.2"></a><var>55.2</var>and capital assets owned by an organization, or for the replacement of a capital asset that <br/>
<a id="pl.55.3"></a><var>55.3</var>can no longer be repaired, with a fiscal year limit of five percent of gross profits from <br/>
<a id="pl.55.4"></a><var>55.4</var>the previous fiscal year, with no carryforward of unused allowances. The fiscal year is <br/>
<a id="pl.55.5"></a><var>55.5</var>July 1 through June 30. Total expenditures for the fiscal year may not exceed the limit <br/>
<a id="pl.55.6"></a><var>55.6</var>unless the board has specifically approved the expenditures that exceed the limit due to <br/>
<a id="pl.55.7"></a><var>55.7</var>extenuating circumstances beyond the organization's control. An expansion of a building <br/>
<a id="pl.55.8"></a><var>55.8</var>or bar-related expenditures are not allowed under this provision.<br/>
<a id="pl.55.9"></a><var>55.9</var>    (i) The expenditure must be related to the portion of the real property or capital asset <br/>
<a id="pl.55.10"></a><var>55.10</var>that must be made available for use free of any charge to other nonprofit organizations, <br/>
<a id="pl.55.11"></a><var>55.11</var>community groups, or service groups, or is used for the organization's primary mission or <br/>
<a id="pl.55.12"></a><var>55.12</var>headquarters.<br/>
<a id="pl.55.13"></a><var>55.13</var>    (ii) An expenditure may be made to bring an existing building that the organization <br/>
<a id="pl.55.14"></a><var>55.14</var>owns into compliance with the Americans with Disabilities Act.<br/>
<a id="pl.55.15"></a><var>55.15</var>    (iii) An organization may apply the amount that is allowed under item (ii) to the <br/>
<a id="pl.55.16"></a><var>55.16</var>erection or acquisition of a replacement building that is in compliance with the Americans <br/>
<a id="pl.55.17"></a><var>55.17</var>with Disabilities Act if the board has specifically approved the amount. The cost of <br/>
<a id="pl.55.18"></a><var>55.18</var>the erection or acquisition of a replacement building may not be made from gambling <br/>
<a id="pl.55.19"></a><var>55.19</var>proceeds, except for the portion allowed under this item;<br/>
<a id="pl.55.20"></a><var>55.20</var>    (23) an expenditure for the acquisition or improvement of a capital asset with a cost <br/>
<a id="pl.55.21"></a><var>55.21</var>greater than $2,000, excluding real property, that will be used exclusively for lawful <br/>
<a id="pl.55.22"></a><var>55.22</var>purposes under this section if the board has specifically approved the amount;<br/>
<a id="pl.55.23"></a><var>55.23</var>    (24) an expenditure for the acquisition, erection, improvement, or expansion of real <br/>
<a id="pl.55.24"></a><var>55.24</var>property, if the board has first specifically authorized the expenditure after finding that the <br/>
<a id="pl.55.25"></a><var>55.25</var>real property will be used exclusively for lawful purpose under this section; or<br/>
<a id="pl.55.26"></a><var>55.26</var>    (25) an expenditure, including a mortgage payment or other debt service payment, <br/>
<a id="pl.55.27"></a><var>55.27</var>for the erection or acquisition of a comparable building to replace an organization-owned <br/>
<a id="pl.55.28"></a><var>55.28</var>building that was destroyed or made uninhabitable by fire or catastrophe or to replace an <br/>
<a id="pl.55.29"></a><var>55.29</var>organization-owned building that was taken or sold under an eminent domain proceeding. <br/>
<a id="pl.55.30"></a><var>55.30</var>The expenditure may be only for that part of the replacement cost not reimbursed by <br/>
<a id="pl.55.31"></a><var>55.31</var>insurance for the fire or catastrophe or compensation not received from a governmental <br/>
<a id="pl.55.32"></a><var>55.32</var>unit under the eminent domain proceeding, if the board has first specifically authorized <br/>
<a id="pl.55.33"></a><var>55.33</var>the expenditure.<br/>
<a id="pl.55.34"></a><var>55.34</var>    (b) Expenditures authorized by the board under clauses (24) and (25) must be <br/>
<a id="pl.55.35"></a><var>55.35</var>51 percent completed within two years of the date of board approval; otherwise the <br/>
<a id="pl.55.36"></a><var>55.36</var>organization must reapply to the board for approval of the project. "Fifty-one percent <br/>
<a id="pl.56.1"></a><var>56.1</var>completed" means that the work completed must represent at least 51 percent of the value <br/>
<a id="pl.56.2"></a><var>56.2</var>of the project as documented by the contractor or vendor.<br/>
<a id="pl.56.3"></a><var>56.3</var>    (c) Notwithstanding paragraph (a), "lawful purpose" does not include:<br/>
<a id="pl.56.4"></a><var>56.4</var>    (1) any expenditure made or incurred for the purpose of influencing the nomination <br/>
<a id="pl.56.5"></a><var>56.5</var>or election of a candidate for public office or for the purpose of promoting or defeating a <br/>
<a id="pl.56.6"></a><var>56.6</var>ballot question;<br/>
<a id="pl.56.7"></a><var>56.7</var>    (2) any activity intended to influence an election or a governmental decision-making <br/>
<a id="pl.56.8"></a><var>56.8</var>process;<br/>
<a id="pl.56.9"></a><var>56.9</var>    (3) a contribution to a statutory or home rule charter city, county, or town by a <br/>
<a id="pl.56.10"></a><var>56.10</var>licensed organization with the knowledge that the governmental unit intends to use the <br/>
<a id="pl.56.11"></a><var>56.11</var>contribution for a pension or retirement fund; or<br/>
<a id="pl.56.12"></a><var>56.12</var>    (4) a contribution to a 501(c)(3) organization or other entity with the intent or effect <br/>
<a id="pl.56.13"></a><var>56.13</var>of not complying with lawful purpose restrictions or requirements.<br/>
<a id="pl.56.14"></a><var>56.14</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2012.<br/>
<br/>
<a id="bill.5.22.0"></a><a id="pl.56.15"></a><var>56.15</var>    Sec. 22. Minnesota Statutes 2010, section 349.12, subdivision 25b, is amended to read:<br/>
<a id="pl.56.16"></a><var>56.16</var>    Subd. 25b. <b>Linked bingo game provider.</b> "Linked bingo game provider" means <br/>
<a id="pl.56.17"></a><var>56.17</var>any person who provides the means to link bingo prizes in a linked bingo game, who <br/>
<a id="pl.56.18"></a><var>56.18</var>provides linked bingo paper sheets to the participating organizations games, who provides <br/>
<a id="pl.56.19"></a><var>56.19</var>linked bingo prize management, and who provides the linked bingo game system.<br/>
<br/>
<a id="bill.5.23.0"></a><a id="pl.56.20"></a><var>56.20</var>    Sec. 23. Minnesota Statutes 2010, section 349.12, subdivision 25c, is amended to read:<br/>
<a id="pl.56.21"></a><var>56.21</var>    Subd. 25c. <b>Linked bingo game system.</b> "Linked bingo game system" means the <br/>
<a id="pl.56.22"></a><var>56.22</var>equipment used by the linked bingo provider to conduct, transmit, and track a linked <br/>
<a id="pl.56.23"></a><var>56.23</var>bingo game. The system must be approved by the board before its use in this state and <br/>
<a id="pl.56.24"></a><var>56.24</var>it must have dial-up or other the capability to permit the board to electronically monitor <br/>
<a id="pl.56.25"></a><var>56.25</var>its operation remotely. For linked electronic bingo games, the system includes electronic <br/>
<a id="pl.56.26"></a><var>56.26</var>bingo devices.<br/>
<br/>
<a id="bill.5.24.0"></a><a id="pl.56.27"></a><var>56.27</var>    Sec. 24. Minnesota Statutes 2010, section 349.12, subdivision 25d, is amended to read:<br/>
<a id="pl.56.28"></a><var>56.28</var>    Subd. 25d. <b>Linked bingo prize pool.</b> "Linked bingo prize pool" means the total <br/>
<a id="pl.56.29"></a><var>56.29</var>of all prize money that each participating organization has contributed to a linked bingo <br/>
<a id="pl.56.30"></a><var>56.30</var>game prize and includes any portion of the prize pool that is carried over from one <br/>
<a id="pl.56.31"></a><var>56.31</var>occasion game to another in a progressive linked bingo game.<br/>
<br/>
<a id="bill.5.25.0"></a><a id="pl.56.32"></a><var>56.32</var>    Sec. 25. Minnesota Statutes 2010, section 349.12, subdivision 29, is amended to read:<br/>
<a id="pl.57.1"></a><var>57.1</var>    Subd. 29. <b>Paddle wheel.</b> "Paddle wheel" means a vertical wheel marked off into <br/>
<a id="pl.57.2"></a><var>57.2</var>sections containing one or more numbers, and which, after being turned or spun, uses a <br/>
<a id="pl.57.3"></a><var>57.3</var>pointer or marker to indicate winning chances, and may only be used to determine a <br/>
<a id="pl.57.4"></a><var>57.4</var>winning number or numbers matching a winning paddle ticket purchased by a player. A <br/>
<a id="pl.57.5"></a><var>57.5</var>paddle wheel may be an electronic device that simulates a paddle wheel.<br/>
<br/>
<a id="bill.5.26.0"></a><a id="pl.57.6"></a><var>57.6</var>    Sec. 26. Minnesota Statutes 2010, section 349.12, subdivision 31, is amended to read:<br/>
<a id="pl.57.7"></a><var>57.7</var>    Subd. 31. <b>Promotional ticket.</b> A paper pull-tab ticket or paper tipboard ticket <br/>
<a id="pl.57.8"></a><var>57.8</var>created and printed by a licensed manufacturer with the words "no purchase necessary" and <br/>
<a id="pl.57.9"></a><var>57.9</var>"for promotional use only" and for which no consideration is given is a promotional ticket.<br/>
<br/>
<a id="bill.5.27.0"></a><a id="pl.57.10"></a><var>57.10</var>    Sec. 27. Minnesota Statutes 2010, section 349.12, subdivision 32, is amended to read:<br/>
<a id="pl.57.11"></a><var>57.11</var>    Subd. 32. <b>Pull-tab.</b> "Pull-tab" means a single folded or banded paper ticket or a, <br/>
<a id="pl.57.12"></a><var>57.12</var>multi-ply card with perforated break-open tabs, or a facsimile of a paper pull-tab ticket <br/>
<a id="pl.57.13"></a><var>57.13</var>used in conjunction with an electronic pull-tab device, the face of which is initially <br/>
<a id="pl.57.14"></a><var>57.14</var>covered to conceal one or more numbers or symbols, and where one or more of each set of <br/>
<a id="pl.57.15"></a><var>57.15</var>tickets or, cards, or facsimiles has been designated in advance as a winner.<br/>
<br/>
<a id="bill.5.28.0"></a><a id="pl.57.16"></a><var>57.16</var>    Sec. 28. Minnesota Statutes 2010, section 349.12, subdivision 34, is amended to read:<br/>
<a id="pl.57.17"></a><var>57.17</var>    Subd. 34. <b>Tipboard.</b> "Tipboard" means a board, placard or other device containing <br/>
<a id="pl.57.18"></a><var>57.18</var>a seal that conceals the winning number or symbol, and that serves as the game flare for a <br/>
<a id="pl.57.19"></a><var>57.19</var>tipboard game. A sports-themed tipboard is a board, placard, or other device that contains a <br/>
<a id="pl.57.20"></a><var>57.20</var>grid of predesignated numbers for which the winning numbers are determined in whole or <br/>
<a id="pl.57.21"></a><var>57.21</var>in part by the numerical outcome of one or more professional sporting events, serves as the <br/>
<a id="pl.57.22"></a><var>57.22</var>game flare for player registration, but is not required to contain a seal. For a sports-themed <br/>
<a id="pl.57.23"></a><var>57.23</var>tipboard, the winning numbers must be determined solely by the numerical outcome.<br/>
<br/>
<a id="bill.5.29.0"></a><a id="pl.57.24"></a><var>57.24</var>    Sec. 29. Minnesota Statutes 2010, section 349.12, subdivision 35, is amended to read:<br/>
<a id="pl.57.25"></a><var>57.25</var>    Subd. 35. <b>Tipboard ticket.</b> "Tipboard ticket" is a single folded or banded ticket, <br/>
<a id="pl.57.26"></a><var>57.26</var>or multi-ply card, the face of which is initially covered or otherwise hidden from view <br/>
<a id="pl.57.27"></a><var>57.27</var>to conceal a number, symbol, or set of symbols, some of which have been designated in <br/>
<a id="pl.57.28"></a><var>57.28</var>advance and at random as prize winners. For a sports-themed tipboard, the tipboard ticket <br/>
<a id="pl.57.29"></a><var>57.29</var>contains a set of numbers used to determine the winner based on the numerical outcome <br/>
<a id="pl.57.30"></a><var>57.30</var>of a professional sporting event.<br/>
<br/>
<a id="bill.5.30.0"></a><a id="pl.58.1"></a><var>58.1</var>    Sec. 30. Minnesota Statutes 2010, section 349.13, is amended to read:<br/>
<a id="pl.58.2"></a><var>58.2</var><b>349.13 LAWFUL GAMBLING.</b><br/>
<a id="pl.58.3"></a><var>58.3</var>Lawful gambling is not a lottery or gambling within the meaning of sections 
         <statute_ref>609.75</statute_ref> <br/>
<a id="pl.58.4"></a><var>58.4</var>to 
         <statute_ref>609.76</statute_ref> if it is conducted under this chapter. A pull-tab dispensing device, electronic <br/>
<a id="pl.58.5"></a><var>58.5</var>bingo device, and electronic pull-tab device permitted under this chapter and by board <br/>
<a id="pl.58.6"></a><var>58.6</var>rule is not a gambling device within the meaning of sections 
         <statute_ref>609.75</statute_ref> to 
         <statute_ref>609.76</statute_ref> and chapter <br/>
<a id="pl.58.7"></a><var>58.7</var>299L. An electronic game device allowed under this chapter may not be a slot machine. <br/>
<a id="pl.58.8"></a><var>58.8</var>Electronic game devices, including but not limited to electronic bingo devices, electronic <br/>
<a id="pl.58.9"></a><var>58.9</var>paddle wheels, and electronic pull-tab devices authorized under this chapter, may only <br/>
<a id="pl.58.10"></a><var>58.10</var>be used in the conduct of lawful gambling permitted under this chapter and board rule <br/>
<a id="pl.58.11"></a><var>58.11</var>and may not display or simulate any other form of gambling or entertainment, except <br/>
<a id="pl.58.12"></a><var>58.12</var>as otherwise allowed under this chapter. <br/>
<br/>
<a id="bill.5.31.0"></a><a id="pl.58.13"></a><var>58.13</var>    Sec. 31. Minnesota Statutes 2010, section 349.151, subdivision 4b, is amended to read:<br/>
<a id="pl.58.14"></a><var>58.14</var>    Subd. 4b. <b>Pull-tab sales from dispensing devices.</b> (a) The board may by rule <br/>
<a id="pl.58.15"></a><var>58.15</var>authorize but not require the use of pull-tab dispensing devices.<br/>
<a id="pl.58.16"></a><var>58.16</var>(b) Rules adopted under paragraph (a):<br/>
<a id="pl.58.17"></a><var>58.17</var>(1) must limit the number of pull-tab dispensing devices on any permitted premises <br/>
<a id="pl.58.18"></a><var>58.18</var>to three; and<br/>
<a id="pl.58.19"></a><var>58.19</var>(2) must limit the use of pull-tab dispensing devices to a permitted premises which is <br/>
<a id="pl.58.20"></a><var>58.20</var>(i) a licensed premises for on-sales of intoxicating liquor or 3.2 percent malt beverages; <br/>
<a id="pl.58.21"></a><var>58.21</var>or (ii) a premises where bingo is conducted and admission is restricted to persons 18 <br/>
<a id="pl.58.22"></a><var>58.22</var>years or older.<br/>
<a id="pl.58.23"></a><var>58.23</var>(c) Notwithstanding rules adopted under paragraph (b), pull-tab dispensing devices <br/>
<a id="pl.58.24"></a><var>58.24</var>may be used in establishments licensed for the off-sale of intoxicating liquor, other than <br/>
<a id="pl.58.25"></a><var>58.25</var>drugstores and general food stores licensed under section 
<statute_ref>340A.405, subdivision 1</statute_ref>.<br/>
<br/>
<a id="bill.5.32.0"></a><a id="pl.58.26"></a><var>58.26</var>    Sec. 32. Minnesota Statutes 2010, section 349.151, subdivision 4c, is amended to read:<br/>
<a id="pl.58.27"></a><var>58.27</var>    Subd. 4c. <b>Electronic bingo</b><b> devices</b><b>.</b> (a) The board may by rule authorize but not <br/>
<a id="pl.58.28"></a><var>58.28</var>require the use of electronic bingo devices.<br/>
<a id="pl.58.29"></a><var>58.29</var>(b) Rules adopted under paragraph (a):<br/>
<a id="pl.58.30"></a><var>58.30</var>(1) must limit the number of bingo faces that can be played using an electronic <br/>
<a id="pl.58.31"></a><var>58.31</var>bingo device to 36;<br/>
<a id="pl.58.32"></a><var>58.32</var>(2) must require that an electronic bingo device be used with corresponding bingo <br/>
<a id="pl.58.33"></a><var>58.33</var>paper sheets or a facsimile, printed at the point of sale, as approved by the board;<br/>
<a id="pl.59.1"></a><var>59.1</var>(3) must require that the electronic bingo device site system have dial-up capability <br/>
<a id="pl.59.2"></a><var>59.2</var>to permit the board to remotely monitor the operation of the device and the internal <br/>
<a id="pl.59.3"></a><var>59.3</var>accounting systems; and<br/>
<a id="pl.59.4"></a><var>59.4</var>(4) must prohibit the price of a face played on an electronic bingo device from being <br/>
<a id="pl.59.5"></a><var>59.5</var>less than the price of a face on a bingo paper sheet sold at the same occasion.<br/>
<a id="pl.59.6"></a><var>59.6</var>(b) The board, or the director if authorized by the board, may require the deactivation <br/>
<a id="pl.59.7"></a><var>59.7</var>of an electronic bingo device for violation of a law or rule and to implement any other <br/>
<a id="pl.59.8"></a><var>59.8</var>controls deemed necessary to ensure and maintain the integrity of electronic bingo devices <br/>
<a id="pl.59.9"></a><var>59.9</var>and the electronic bingo games played on the devices.<br/>
<br/>
<a id="bill.5.33.0"></a><a id="pl.59.10"></a><var>59.10</var>    Sec. 33. Minnesota Statutes 2010, section 349.151, is amended by adding a subdivision <br/>
<a id="pl.59.11"></a><var>59.11</var>to read:<br/>
<a id="pl.59.12"></a><var>59.12</var>    Subd. 4d. <b>Electronic pull-tab devices and electronic pull-tab game system.</b> (a) <br/>
<a id="pl.59.13"></a><var>59.13</var>The board may adopt rules it deems necessary to ensure the integrity of electronic pull-tab <br/>
<a id="pl.59.14"></a><var>59.14</var>devices, the electronic pull-tab games played on the devices, and the electronic pull-tab <br/>
<a id="pl.59.15"></a><var>59.15</var>game system necessary to operate them.<br/>
<a id="pl.59.16"></a><var>59.16</var>(b) The board may not require an organization to use electronic pull-tab devices.<br/>
<a id="pl.59.17"></a><var>59.17</var>(c) Before authorizing the lease or sale of electronic pull-tab devices and the <br/>
<a id="pl.59.18"></a><var>59.18</var>electronic pull-tab game system, the board shall examine electronic pull-tab devices <br/>
<a id="pl.59.19"></a><var>59.19</var>allowed under section 349.12, subdivision 12b. The board may contract for the <br/>
<a id="pl.59.20"></a><var>59.20</var>examination of the game system and electronic pull-tab devices and may require a working <br/>
<a id="pl.59.21"></a><var>59.21</var>model to be transported to locations the board designates for testing, examination, and <br/>
<a id="pl.59.22"></a><var>59.22</var>analysis. The manufacturer must pay all costs of any testing, examination, analysis, and <br/>
<a id="pl.59.23"></a><var>59.23</var>transportation of the model. The system must be approved by the board before its use in <br/>
<a id="pl.59.24"></a><var>59.24</var>the state and must have the capability to permit the board to electronically monitor its <br/>
<a id="pl.59.25"></a><var>59.25</var>operation and internal accounting systems. <br/>
<a id="pl.59.26"></a><var>59.26</var>(d) The board may require a manufacturer to submit a certificate from an independent <br/>
<a id="pl.59.27"></a><var>59.27</var>testing laboratory approved by the board to perform testing services, stating that the <br/>
<a id="pl.59.28"></a><var>59.28</var>equipment has been tested, analyzed, and meets the standards required in this chapter <br/>
<a id="pl.59.29"></a><var>59.29</var>and any applicable board rules.<br/>
<a id="pl.59.30"></a><var>59.30</var>(e) The board, or the director if authorized by the board, may require the deactivation <br/>
<a id="pl.59.31"></a><var>59.31</var>of an electronic pull-tab device for violation of a law or rule and to implement any other <br/>
<a id="pl.59.32"></a><var>59.32</var>controls deemed necessary to ensure and maintain the integrity of electronic pull-tab <br/>
<a id="pl.59.33"></a><var>59.33</var>devices and the electronic pull-tab games played on the devices.<br/>
<br/>
<a id="bill.5.34.0"></a><a id="pl.60.1"></a><var>60.1</var>    Sec. 34. Minnesota Statutes 2010, section 349.151, is amended by adding a subdivision <br/>
<a id="pl.60.2"></a><var>60.2</var>to read:<br/>
<a id="pl.60.3"></a><var>60.3</var>    Subd. 4e. <b>Sports-themed tipboard rules.</b> The board may adopt rules for the <br/>
<a id="pl.60.4"></a><var>60.4</var>conduct of tipboards for which the winning numbers are determined in whole or in part <br/>
<a id="pl.60.5"></a><var>60.5</var>by the numerical outcome of one or more professional sporting events. The rules must <br/>
<a id="pl.60.6"></a><var>60.6</var>provide for operation procedures, internal control standards, posted information, records, <br/>
<a id="pl.60.7"></a><var>60.7</var>and reports. The rules must provide for the award of prizes, method of payout, wagers, <br/>
<a id="pl.60.8"></a><var>60.8</var>determination of winners, and the specifications of these tipboards. <br/>
<br/>
<a id="bill.5.35.0"></a><a id="pl.60.9"></a><var>60.9</var>    Sec. 35. Minnesota Statutes 2010, section 349.155, subdivision 3, is amended to read:<br/>
<a id="pl.60.10"></a><var>60.10</var>    Subd. 3. <b>Mandatory disqualifications.</b> (a) In the case of licenses for manufacturers, <br/>
<a id="pl.60.11"></a><var>60.11</var>distributors, distributor salespersons, linked bingo game providers, and gambling <br/>
<a id="pl.60.12"></a><var>60.12</var>managers, the board may not issue or renew a license under this chapter, and shall revoke <br/>
<a id="pl.60.13"></a><var>60.13</var>a license under this chapter, if the applicant or licensee, or a director, officer, partner, <br/>
<a id="pl.60.14"></a><var>60.14</var>governor, or person in a supervisory or management position of the applicant or licensee:<br/>
<a id="pl.60.15"></a><var>60.15</var>    (1) has ever been convicted of a felony or a crime involving gambling;<br/>
<a id="pl.60.16"></a><var>60.16</var>    (2) has ever been convicted of (i) assault, (ii) a criminal violation involving the use <br/>
<a id="pl.60.17"></a><var>60.17</var>of a firearm, or (iii) making terroristic threats;<br/>
<a id="pl.60.18"></a><var>60.18</var>    (3) is or has ever been connected with or engaged in an illegal business;<br/>
<a id="pl.60.19"></a><var>60.19</var>    (4) owes $500 or more in delinquent taxes as defined in section 
         <statute_ref>270C.72</statute_ref>;<br/>
<a id="pl.60.20"></a><var>60.20</var>    (5) had a sales and use tax permit revoked by the commissioner of revenue within <br/>
<a id="pl.60.21"></a><var>60.21</var>the past two years; or<br/>
<a id="pl.60.22"></a><var>60.22</var>    (6) after demand, has not filed tax returns required by the commissioner of revenue. <br/>
<a id="pl.60.23"></a><var>60.23</var>The board may deny or refuse to renew a license under this chapter, and may revoke a <br/>
<a id="pl.60.24"></a><var>60.24</var>license under this chapter, if any of the conditions in this paragraph are applicable to <br/>
<a id="pl.60.25"></a><var>60.25</var>an affiliate or direct or indirect holder of more than a five percent financial interest in <br/>
<a id="pl.60.26"></a><var>60.26</var>the applicant or licensee.<br/>
<a id="pl.60.27"></a><var>60.27</var>    (b) In the case of licenses for organizations, the board may not issue a license under <br/>
<a id="pl.60.28"></a><var>60.28</var>this chapter, and shall revoke a license under this chapter, if the organization, or an officer <br/>
<a id="pl.60.29"></a><var>60.29</var>or member of the governing body of the organization:<br/>
<a id="pl.60.30"></a><var>60.30</var>    (1) has been convicted of a felony or gross misdemeanor involving theft or fraud; or<br/>
<a id="pl.60.31"></a><var>60.31</var>    (2) has ever been convicted of a crime involving gambling; or.<br/>
<a id="pl.60.32"></a><var>60.32</var>    (3) has had a license issued by the board or director permanently revoked for <br/>
<a id="pl.60.33"></a><var>60.33</var>violation of law or board rule.<br/>
<br/>
<a id="bill.5.36.0"></a><a id="pl.60.34"></a><var>60.34</var>    Sec. 36. Minnesota Statutes 2010, section 349.155, subdivision 4, is amended to read:<br/>
<a id="pl.61.1"></a><var>61.1</var>    Subd. 4. <b>License revocation, suspension, denial; censure.</b> (a) The board may by <br/>
<a id="pl.61.2"></a><var>61.2</var>order (i) deny, suspend, revoke, or refuse to renew a license or premises permit, or (ii) <br/>
<a id="pl.61.3"></a><var>61.3</var>censure a licensee or applicant, if it finds that the order is in the public interest and that the <br/>
<a id="pl.61.4"></a><var>61.4</var>applicant or licensee, or a director, officer, partner, governor, person in a supervisory or <br/>
<a id="pl.61.5"></a><var>61.5</var>management position of the applicant or licensee, an employee eligible to make sales on <br/>
<a id="pl.61.6"></a><var>61.6</var>behalf of the applicant or licensee, or direct or indirect holder of more than a five percent <br/>
<a id="pl.61.7"></a><var>61.7</var>financial interest in the applicant or licensee:<br/>
<a id="pl.61.8"></a><var>61.8</var>    (1) has violated or failed to comply with any provision of this chapter or chapter <br/>
<a id="pl.61.9"></a><var>61.9</var>297E or 299L, or any rule adopted or order issued thereunder;<br/>
<a id="pl.61.10"></a><var>61.10</var>    (2) has filed an application for a license that is incomplete in any material respect, or <br/>
<a id="pl.61.11"></a><var>61.11</var>contains a statement that, in light of the circumstances under which it was made, is false, <br/>
<a id="pl.61.12"></a><var>61.12</var>misleading, fraudulent, or a misrepresentation;<br/>
<a id="pl.61.13"></a><var>61.13</var>    (3) has made a false statement in a document or report required to be submitted to <br/>
<a id="pl.61.14"></a><var>61.14</var>the board or the commissioner of revenue, or has made a false statement to the board, the <br/>
<a id="pl.61.15"></a><var>61.15</var>compliance review group, or the director;<br/>
<a id="pl.61.16"></a><var>61.16</var>    (4) has been convicted of a crime in another jurisdiction that would be a felony if <br/>
<a id="pl.61.17"></a><var>61.17</var>committed in Minnesota;<br/>
<a id="pl.61.18"></a><var>61.18</var>    (5) is permanently or temporarily enjoined by any gambling regulatory agency from <br/>
<a id="pl.61.19"></a><var>61.19</var>engaging in or continuing any conduct or practice involving any aspect of gambling;<br/>
<a id="pl.61.20"></a><var>61.20</var>    (6) has had a gambling-related license revoked or suspended, or has paid or been <br/>
<a id="pl.61.21"></a><var>61.21</var>required to pay a monetary penalty of $2,500 or more, by a gambling regulator in another <br/>
<a id="pl.61.22"></a><var>61.22</var>state or jurisdiction;<br/>
<a id="pl.61.23"></a><var>61.23</var>    (7) has been the subject of any of the following actions by the director of alcohol <br/>
<a id="pl.61.24"></a><var>61.24</var>and gambling enforcement or commissioner of public safety: (i) had a license under <br/>
<a id="pl.61.25"></a><var>61.25</var>chapter 299L denied, suspended, or revoked, (ii) been censured, reprimanded, has paid or <br/>
<a id="pl.61.26"></a><var>61.26</var>been required to pay a monetary penalty or fine, or (iii) has been the subject of any other <br/>
<a id="pl.61.27"></a><var>61.27</var>discipline by the director or commissioner;<br/>
<a id="pl.61.28"></a><var>61.28</var>    (8) has engaged in conduct that is contrary to the public health, welfare, or safety, or <br/>
<a id="pl.61.29"></a><var>61.29</var>to the integrity of gambling; or<br/>
<a id="pl.61.30"></a><var>61.30</var>    (9) based on past activities or criminal record poses a threat to the public interest or <br/>
<a id="pl.61.31"></a><var>61.31</var>to the effective regulation and control of gambling, or creates or enhances the dangers of <br/>
<a id="pl.61.32"></a><var>61.32</var>unsuitable, unfair, or illegal practices, methods, and activities in the conduct of gambling <br/>
<a id="pl.61.33"></a><var>61.33</var>or the carrying on of the business and financial arrangements incidental to the conduct of <br/>
<a id="pl.61.34"></a><var>61.34</var>gambling.<br/>
<a id="pl.62.1"></a><var>62.1</var>    (b) The revocation or suspension of an organization's license may not exceed a <br/>
<a id="pl.62.2"></a><var>62.2</var>period of ten years, including any revocation or suspension imposed by the board prior to <br/>
<a id="pl.62.3"></a><var>62.3</var>the effective date of this paragraph, except that:<br/>
<a id="pl.62.4"></a><var>62.4</var>    (1) any prohibition placed by the board on who may be involved in the conduct, <br/>
<a id="pl.62.5"></a><var>62.5</var>oversight, or management of the revoked organization's lawful gambling activity is <br/>
<a id="pl.62.6"></a><var>62.6</var>permanent; and<br/>
<a id="pl.62.7"></a><var>62.7</var>    (2) a revocation or suspension will remain in effect until any taxes, fees, and fines <br/>
<a id="pl.62.8"></a><var>62.8</var>that are delinquent have been paid by the organization to the satisfaction of the board.<br/>
<br/>
<a id="bill.5.37.0"></a><a id="pl.62.9"></a><var>62.9</var>    Sec. 37. Minnesota Statutes 2010, section 349.161, subdivision 1, is amended to read:<br/>
<a id="pl.62.10"></a><var>62.10</var>    Subdivision 1. <b>Prohibited acts; licenses required.</b> (a) No person may:<br/>
<a id="pl.62.11"></a><var>62.11</var>    (1) sell, offer for sale, or furnish gambling equipment for use within the state other <br/>
<a id="pl.62.12"></a><var>62.12</var>than for lawful gambling exempt or excluded from licensing, except to an organization <br/>
<a id="pl.62.13"></a><var>62.13</var>licensed for lawful gambling;<br/>
<a id="pl.62.14"></a><var>62.14</var>    (2) sell, offer for sale, or furnish gambling equipment for use within the state without <br/>
<a id="pl.62.15"></a><var>62.15</var>having obtained a distributor license or a distributor salesperson license under this section <br/>
<a id="pl.62.16"></a><var>62.16</var>except that an organization authorized to conduct bingo by the board may loan bingo <br/>
<a id="pl.62.17"></a><var>62.17</var>hard cards and devices for selecting bingo numbers to another organization authorized to <br/>
<a id="pl.62.18"></a><var>62.18</var>conduct bingo and a linked bingo game provider may provide electronic bingo devices for <br/>
<a id="pl.62.19"></a><var>62.19</var>linked electronic bingo games;<br/>
<a id="pl.62.20"></a><var>62.20</var>    (3) sell, offer for sale, or furnish gambling equipment for use within the state that is <br/>
<a id="pl.62.21"></a><var>62.21</var>not purchased or obtained from a manufacturer or distributor licensed under this chapter; or<br/>
<a id="pl.62.22"></a><var>62.22</var>    (4) sell, offer for sale, or furnish gambling equipment for use within the state that <br/>
<a id="pl.62.23"></a><var>62.23</var>has the same serial number as another item of gambling equipment of the same type sold <br/>
<a id="pl.62.24"></a><var>62.24</var>or offered for sale or furnished for use in the state by that distributor.<br/>
<a id="pl.62.25"></a><var>62.25</var>    (b) No licensed distributor salesperson may sell, offer for sale, or furnish gambling <br/>
<a id="pl.62.26"></a><var>62.26</var>equipment for use within the state without being employed by a licensed distributor or <br/>
<a id="pl.62.27"></a><var>62.27</var>owning a distributor license.<br/>
<a id="pl.62.28"></a><var>62.28</var>(c) No distributor or distributor salesperson may also be licensed as a linked bingo <br/>
<a id="pl.62.29"></a><var>62.29</var>game provider under section 349.1635.<br/>
<br/>
<a id="bill.5.38.0"></a><a id="pl.62.30"></a><var>62.30</var>    Sec. 38. Minnesota Statutes 2010, section 349.161, subdivision 5, is amended to read:<br/>
<a id="pl.62.31"></a><var>62.31</var>    Subd. 5. <b>Prohibition.</b> (a) No distributor, distributor salesperson, or other employee <br/>
<a id="pl.62.32"></a><var>62.32</var>of a distributor, may also be a wholesale distributor of alcoholic beverages or an employee <br/>
<a id="pl.62.33"></a><var>62.33</var>of a wholesale distributor of alcoholic beverages.<br/>
<a id="pl.63.1"></a><var>63.1</var>    (b) No distributor, distributor salesperson, or any representative, agent, affiliate, or <br/>
<a id="pl.63.2"></a><var>63.2</var>other employee of a distributor, may: (1) be involved in the conduct of lawful gambling <br/>
<a id="pl.63.3"></a><var>63.3</var>by an organization; (2) keep or assist in the keeping of an organization's financial records, <br/>
<a id="pl.63.4"></a><var>63.4</var>accounts, and inventories; or (3) prepare or assist in the preparation of tax forms and other <br/>
<a id="pl.63.5"></a><var>63.5</var>reporting forms required to be submitted to the state by an organization.<br/>
<a id="pl.63.6"></a><var>63.6</var>    (c) No distributor, distributor salesperson, or any representative, agent, affiliate, <br/>
<a id="pl.63.7"></a><var>63.7</var>or other employee of a distributor may provide a lessor of gambling premises any <br/>
<a id="pl.63.8"></a><var>63.8</var>compensation, gift, gratuity, premium, or other thing of value.<br/>
<a id="pl.63.9"></a><var>63.9</var>    (d) No distributor, distributor salesperson, or any representative, agent, affiliate, or <br/>
<a id="pl.63.10"></a><var>63.10</var>other employee of a distributor may provide an employee or agent of the organization <br/>
<a id="pl.63.11"></a><var>63.11</var>any compensation, gift, gratuity, premium, or other thing of value greater than $25 per <br/>
<a id="pl.63.12"></a><var>63.12</var>organization in a calendar year.<br/>
<a id="pl.63.13"></a><var>63.13</var>    (e) No distributor, distributor salesperson, or any representative, agent, affiliate, or <br/>
<a id="pl.63.14"></a><var>63.14</var>other employee of a distributor may participate in any gambling activity at any gambling <br/>
<a id="pl.63.15"></a><var>63.15</var>site or premises where gambling equipment purchased or leased from that distributor or <br/>
<a id="pl.63.16"></a><var>63.16</var>distributor salesperson is being used in the conduct of lawful gambling.<br/>
<a id="pl.63.17"></a><var>63.17</var>    (f) No distributor, distributor salesperson, or any representative, agent, affiliate, or <br/>
<a id="pl.63.18"></a><var>63.18</var>other employee of a distributor may alter or modify any gambling equipment, except to <br/>
<a id="pl.63.19"></a><var>63.19</var>add a "last ticket sold" prize sticker for a paper pull-tab game.<br/>
<a id="pl.63.20"></a><var>63.20</var>    (g) No distributor, distributor salesperson, or any representative, agent, affiliate, or <br/>
<a id="pl.63.21"></a><var>63.21</var>other employee of a distributor may: (1) recruit a person to become a gambling manager <br/>
<a id="pl.63.22"></a><var>63.22</var>of an organization or identify to an organization a person as a candidate to become <br/>
<a id="pl.63.23"></a><var>63.23</var>gambling manager for the organization; or (2) identify for an organization a potential <br/>
<a id="pl.63.24"></a><var>63.24</var>gambling location.<br/>
<a id="pl.63.25"></a><var>63.25</var>    (h) No distributor or distributor salesperson may purchase or lease gambling <br/>
<a id="pl.63.26"></a><var>63.26</var>equipment for resale or lease to a person for use within the state from any person not <br/>
<a id="pl.63.27"></a><var>63.27</var>licensed as a manufacturer under section 
         <statute_ref>349.163</statute_ref>, except for gambling equipment <br/>
<a id="pl.63.28"></a><var>63.28</var>returned from an organization licensed under section 
         <statute_ref>349.16</statute_ref>, or exempt or excluded from <br/>
<a id="pl.63.29"></a><var>63.29</var>licensing under section 
         <statute_ref>349.166</statute_ref>.<br/>
<a id="pl.63.30"></a><var>63.30</var>    (i) No distributor or distributor salesperson may sell gambling equipment, except <br/>
<a id="pl.63.31"></a><var>63.31</var>gambling equipment identified as a promotional ticket, to any person for use in Minnesota <br/>
<a id="pl.63.32"></a><var>63.32</var>other than (i) a licensed organization or organization excluded or exempt from licensing, <br/>
<a id="pl.63.33"></a><var>63.33</var>or (ii) the governing body of an Indian tribe.<br/>
<a id="pl.63.34"></a><var>63.34</var>    (j) No distributor or distributor salesperson may sell or otherwise provide a paper <br/>
<a id="pl.63.35"></a><var>63.35</var>pull-tab or tipboard deal with the symbol required by section 
         <statute_ref>349.163, subdivision 5</statute_ref>, <br/>
<a id="pl.64.1"></a><var>64.1</var>paragraph (d), visible on the flare to any person other than in Minnesota to a licensed <br/>
<a id="pl.64.2"></a><var>64.2</var>organization or organization exempt from licensing.<br/>
<br/>
<a id="bill.5.39.0"></a><a id="pl.64.3"></a><var>64.3</var>    Sec. 39. Minnesota Statutes 2010, section 349.162, subdivision 5, is amended to read:<br/>
<a id="pl.64.4"></a><var>64.4</var>    Subd. 5. <b>Sales from facilities.</b> (a) All gambling equipment purchased or possessed <br/>
<a id="pl.64.5"></a><var>64.5</var>by a licensed distributor for resale or lease to any person for use in Minnesota must, prior <br/>
<a id="pl.64.6"></a><var>64.6</var>to the equipment's resale or lease, be unloaded into a storage facility located in Minnesota <br/>
<a id="pl.64.7"></a><var>64.7</var>which the distributor owns or leases; and which has been registered, in advance and in <br/>
<a id="pl.64.8"></a><var>64.8</var>writing, with the Division of Alcohol and Gambling Enforcement as a storage facility of <br/>
<a id="pl.64.9"></a><var>64.9</var>the distributor. All unregistered gambling equipment and all unaffixed registration stamps <br/>
<a id="pl.64.10"></a><var>64.10</var>owned by, or in the possession of, a licensed distributor in the state of Minnesota shall be <br/>
<a id="pl.64.11"></a><var>64.11</var>stored at a storage facility which has been registered with the Division of Alcohol and <br/>
<a id="pl.64.12"></a><var>64.12</var>Gambling Enforcement. No gambling equipment may be moved from the facility unless <br/>
<a id="pl.64.13"></a><var>64.13</var>the gambling equipment has been first registered with the board or the Department of <br/>
<a id="pl.64.14"></a><var>64.14</var>Revenue. A distributor must notify the board of the method that it will use to sell and <br/>
<a id="pl.64.15"></a><var>64.15</var>transfer electronic pull-tab games to licensed organizations, and must receive approval of <br/>
<a id="pl.64.16"></a><var>64.16</var>the board before implementing or making changes to the approved method.<br/>
<a id="pl.64.17"></a><var>64.17</var>(b) Notwithstanding section 
         <statute_ref>349.163, subdivisions 5, 6, and 8</statute_ref>, a licensed <br/>
<a id="pl.64.18"></a><var>64.18</var>manufacturer may ship into Minnesota approved or unapproved gambling equipment if the <br/>
<a id="pl.64.19"></a><var>64.19</var>licensed manufacturer ships the gambling equipment to a Minnesota storage facility that <br/>
<a id="pl.64.20"></a><var>64.20</var>is: (1) owned or leased by the licensed manufacturer; and (2) registered, in advance and <br/>
<a id="pl.64.21"></a><var>64.21</var>in writing, with the Division of Alcohol and Gambling Enforcement as a manufacturer's <br/>
<a id="pl.64.22"></a><var>64.22</var>storage facility. No gambling equipment may be shipped into Minnesota to the <br/>
<a id="pl.64.23"></a><var>64.23</var>manufacturer's registered storage facility unless the shipment of the gambling equipment <br/>
<a id="pl.64.24"></a><var>64.24</var>is reported to the Department of Revenue in a manner prescribed by the department. <br/>
<a id="pl.64.25"></a><var>64.25</var>No gambling equipment may be moved from the storage facility unless the gambling <br/>
<a id="pl.64.26"></a><var>64.26</var>equipment is sold to a licensed distributor and is otherwise in conformity with this chapter, <br/>
<a id="pl.64.27"></a><var>64.27</var>is shipped to an out-of-state site and the shipment is reported to the Department of <br/>
<a id="pl.64.28"></a><var>64.28</var>Revenue in a manner prescribed by the department, or is otherwise sold and shipped as <br/>
<a id="pl.64.29"></a><var>64.29</var>permitted by board rule. A manufacturer must notify the board of the method that it will <br/>
<a id="pl.64.30"></a><var>64.30</var>use to sell and transfer electronic pull-tab games to licensed distributors, and must receive <br/>
<a id="pl.64.31"></a><var>64.31</var>approval of the board before implementing or making changes to the approved method.<br/>
<a id="pl.64.32"></a><var>64.32</var>(c) All storage facilities owned, leased, used, or operated by a licensed distributor <br/>
<a id="pl.64.33"></a><var>64.33</var>or manufacturer may be entered upon and inspected by the employees of the Division of <br/>
<a id="pl.64.34"></a><var>64.34</var>Alcohol and Gambling Enforcement, the Division of Alcohol and Gambling Enforcement <br/>
<a id="pl.64.35"></a><var>64.35</var>director's authorized representatives, employees of the Gambling Control Board or its <br/>
<a id="pl.65.1"></a><var>65.1</var>authorized representatives, employees of the Department of Revenue, or authorized <br/>
<a id="pl.65.2"></a><var>65.2</var>representatives of the director of the Division of Special Taxes of the Department of <br/>
<a id="pl.65.3"></a><var>65.3</var>Revenue during reasonable and regular business hours. Obstruction of, or failure to <br/>
<a id="pl.65.4"></a><var>65.4</var>permit, entry and inspection is cause for revocation or suspension of a manufacturer's or <br/>
<a id="pl.65.5"></a><var>65.5</var>distributor's licenses and permits issued under this chapter.<br/>
<a id="pl.65.6"></a><var>65.6</var>(d) Unregistered gambling equipment found at any location in Minnesota other than <br/>
<a id="pl.65.7"></a><var>65.7</var>the manufacturing plant of a licensed manufacturer or a registered storage facility are <br/>
<a id="pl.65.8"></a><var>65.8</var>contraband under section 
         <statute_ref>349.2125</statute_ref>. This paragraph does not apply:<br/>
<a id="pl.65.9"></a><var>65.9</var>(1) to unregistered gambling equipment being transported in interstate commerce <br/>
<a id="pl.65.10"></a><var>65.10</var>between locations outside this state, if the interstate shipment is verified by a bill of lading <br/>
<a id="pl.65.11"></a><var>65.11</var>or other valid shipping document; and<br/>
<a id="pl.65.12"></a><var>65.12</var>(2) to gambling equipment registered with the Department of Revenue for <br/>
<a id="pl.65.13"></a><var>65.13</var>distribution to the tribal casinos.<br/>
<br/>
<a id="bill.5.40.0"></a><a id="pl.65.14"></a><var>65.14</var>    Sec. 40. Minnesota Statutes 2010, section 349.163, subdivision 1, is amended to read:<br/>
<a id="pl.65.15"></a><var>65.15</var>    Subdivision 1. <b>License required.</b> No manufacturer of gambling equipment may <br/>
<a id="pl.65.16"></a><var>65.16</var>sell any gambling equipment to any person for use or resale within the state, unless the <br/>
<a id="pl.65.17"></a><var>65.17</var>manufacturer has a current and valid license issued by the board under this section and has <br/>
<a id="pl.65.18"></a><var>65.18</var>satisfied other criteria prescribed by the board by rule. A manufacturer licensed under this <br/>
<a id="pl.65.19"></a><var>65.19</var>section may also be licensed as a linked bingo game provider under section 349.1635. <br/>
<a id="pl.65.20"></a><var>65.20</var>A manufacturer licensed under this section may not also be directly or indirectly <br/>
<a id="pl.65.21"></a><var>65.21</var>licensed as a distributor under section 
         <statute_ref>349.161</statute_ref>.<br/>
<br/>
<a id="bill.5.41.0"></a><a id="pl.65.22"></a><var>65.22</var>    Sec. 41. Minnesota Statutes 2010, section 349.163, subdivision 5, is amended to read:<br/>
<a id="pl.65.23"></a><var>65.23</var>    Subd. 5. <b>Paper </b><b>pull-tab and tipboard flares.</b> (a) A manufacturer may not ship or <br/>
<a id="pl.65.24"></a><var>65.24</var>cause to be shipped into this state or sell for use or resale in this state any deal of paper <br/>
<a id="pl.65.25"></a><var>65.25</var>pull-tabs or tipboards that does not have its own individual flare as required for that deal <br/>
<a id="pl.65.26"></a><var>65.26</var>by this subdivision and rule of the board. A person other than a manufacturer may not <br/>
<a id="pl.65.27"></a><var>65.27</var>manufacture, alter, modify, or otherwise change a flare for a deal of paper pull-tabs or <br/>
<a id="pl.65.28"></a><var>65.28</var>tipboards except as allowed by this chapter or board rules.<br/>
<a id="pl.65.29"></a><var>65.29</var>(b) The flare of each paper pull-tab and tipboard game must have affixed to <br/>
<a id="pl.65.30"></a><var>65.30</var>or imprinted at the bottom a bar code that provides all information required by the <br/>
<a id="pl.65.31"></a><var>65.31</var>commissioner of revenue under section 
         <statute_ref>297E.04, subdivision 2</statute_ref>.<br/>
<a id="pl.65.32"></a><var>65.32</var>The serial number included in the bar code must be the same as the serial number <br/>
<a id="pl.65.33"></a><var>65.33</var>of the tickets included in the deal. A manufacturer who manufactures a deal of paper <br/>
<a id="pl.66.1"></a><var>66.1</var>pull-tabs must affix to the outside of the box containing that game the same bar code that <br/>
<a id="pl.66.2"></a><var>66.2</var>is affixed to or imprinted at the bottom of a flare for that deal.<br/>
<a id="pl.66.3"></a><var>66.3</var>(c) No person may alter the bar code that appears on the outside of a box containing <br/>
<a id="pl.66.4"></a><var>66.4</var>a deal of paper pull-tabs and tipboards. Possession of a box containing a deal of paper <br/>
<a id="pl.66.5"></a><var>66.5</var>pull-tabs and tipboards that has a bar code different from the bar code of the deal inside <br/>
<a id="pl.66.6"></a><var>66.6</var>the box is prima facie evidence that the possessor has altered the bar code on the box.<br/>
<a id="pl.66.7"></a><var>66.7</var>(d) The flare of each deal of paper pull-tabs and tipboards sold by a manufacturer for <br/>
<a id="pl.66.8"></a><var>66.8</var>use or resale in Minnesota must have imprinted on it a symbol that is at least one inch high <br/>
<a id="pl.66.9"></a><var>66.9</var>and one inch wide consisting of an outline of the geographic boundaries of Minnesota <br/>
<a id="pl.66.10"></a><var>66.10</var>with the letters "MN" inside the outline. The flare must be placed inside the wrapping of <br/>
<a id="pl.66.11"></a><var>66.11</var>the deal which the flare describes.<br/>
<a id="pl.66.12"></a><var>66.12</var>(e) Each paper pull-tab and tipboard flare must bear the following statement printed <br/>
<a id="pl.66.13"></a><var>66.13</var>in letters large enough to be clearly legible:<br/>
<a id="pl.66.14"></a><var>66.14</var>"Pull-tab (or tipboard) purchasers -- This pull-tab (or tipboard) game is not legal in <br/>
<a id="pl.66.15"></a><var>66.15</var>Minnesota unless:<br/>
<a id="pl.66.16"></a><var>66.16</var>-- an outline of Minnesota with letters "MN" inside it is imprinted on this sheet, and<br/>
<a id="pl.66.17"></a><var>66.17</var>-- the serial number imprinted on the bar code at the bottom of this sheet is the same <br/>
<a id="pl.66.18"></a><var>66.18</var>as the serial number on the pull-tab (or tipboard) ticket you have purchased."<br/>
<a id="pl.66.19"></a><var>66.19</var>(f) The flare of each paper pull-tab and tipboard game must have the serial number <br/>
<a id="pl.66.20"></a><var>66.20</var>of the game imprinted on the bar code at the bottom of the flare in numerals at least <br/>
<a id="pl.66.21"></a><var>66.21</var>one-half inch high.<br/>
<br/>
<a id="bill.5.42.0"></a><a id="pl.66.22"></a><var>66.22</var>    Sec. 42. Minnesota Statutes 2010, section 349.163, subdivision 6, is amended to read:<br/>
<a id="pl.66.23"></a><var>66.23</var>    Subd. 6. <b>Samples of gambling equipment.</b> (a) The board shall require each <br/>
<a id="pl.66.24"></a><var>66.24</var>licensed manufacturer to submit to the board one or more samples of each item of gambling <br/>
<a id="pl.66.25"></a><var>66.25</var>equipment the manufacturer manufactures manufactured for use or resale in this state. <br/>
<a id="pl.66.26"></a><var>66.26</var>For purposes of this subdivision, a manufacturer is also required to submit the applicable <br/>
<a id="pl.66.27"></a><var>66.27</var>version of any software necessary to operate electronic devices and related systems.<br/>
<a id="pl.66.28"></a><var>66.28</var>(b) The board shall inspect and test all the equipment, including software and <br/>
<a id="pl.66.29"></a><var>66.29</var>software upgrades, it deems necessary to determine the equipment's compliance with <br/>
<a id="pl.66.30"></a><var>66.30</var>law and board rules. Samples required under this subdivision must be approved by the <br/>
<a id="pl.66.31"></a><var>66.31</var>board before the equipment being sampled is shipped into or sold for use or resale in this <br/>
<a id="pl.66.32"></a><var>66.32</var>state. The board shall impose a fee of $25 for each item of gambling equipment that the <br/>
<a id="pl.66.33"></a><var>66.33</var>manufacturer submits for approval or for which the manufacturer requests approval. The <br/>
<a id="pl.66.34"></a><var>66.34</var>board shall impose a fee of $100 for each sample of gambling equipment that it tests.<br/>
<a id="pl.67.1"></a><var>67.1</var>(c) The board may require samples of gambling equipment to be tested by an <br/>
<a id="pl.67.2"></a><var>67.2</var>independent testing laboratory prior to submission to the board for approval. All costs <br/>
<a id="pl.67.3"></a><var>67.3</var>of testing by an independent testing laboratory must be borne by the manufacturer. An <br/>
<a id="pl.67.4"></a><var>67.4</var>independent testing laboratory used by a manufacturer to test samples of gambling <br/>
<a id="pl.67.5"></a><var>67.5</var>equipment must be approved by the board before the equipment is submitted to the <br/>
<a id="pl.67.6"></a><var>67.6</var>laboratory for testing.<br/>
<a id="pl.67.7"></a><var>67.7</var>(d) The board may request the assistance of the commissioner of public safety and <br/>
<a id="pl.67.8"></a><var>67.8</var>the director of the State Lottery in performing the tests.<br/>
<br/>
<a id="bill.5.43.0"></a><a id="pl.67.9"></a><var>67.9</var>    Sec. 43. Minnesota Statutes 2010, section 349.1635, subdivision 2, is amended to read:<br/>
<a id="pl.67.10"></a><var>67.10</var>    Subd. 2. <b>License application.</b> The board may issue a license to a linked bingo game <br/>
<a id="pl.67.11"></a><var>67.11</var>provider or to a manufacturer licensed under section 349.163 who meets the qualifications <br/>
<a id="pl.67.12"></a><var>67.12</var>of this chapter and the rules promulgated by the board. The application shall be on a form <br/>
<a id="pl.67.13"></a><var>67.13</var>prescribed by the board. The license is valid for two years and the fee for a linked bingo <br/>
<a id="pl.67.14"></a><var>67.14</var>game provider license is $5,000 per year.<br/>
<br/>
<a id="bill.5.44.0"></a><a id="pl.67.15"></a><var>67.15</var>    Sec. 44. Minnesota Statutes 2010, section 349.1635, subdivision 3, is amended to read:<br/>
<a id="pl.67.16"></a><var>67.16</var>    Subd. 3. <b>Attachments to application.</b> An applicant for a linked bingo game <br/>
<a id="pl.67.17"></a><var>67.17</var>provider license must attach to its application:<br/>
<a id="pl.67.18"></a><var>67.18</var>(1) evidence of a bond in the principal amount of $100,000 payable to the state of <br/>
<a id="pl.67.19"></a><var>67.19</var>Minnesota conditioned on the payment of all linked bingo prizes and any other money due <br/>
<a id="pl.67.20"></a><var>67.20</var>and payable under this chapter;<br/>
<a id="pl.67.21"></a><var>67.21</var>(2) detailed plans and specifications for the operation of the linked bingo game and <br/>
<a id="pl.67.22"></a><var>67.22</var>the linked bingo system, along with a proposed fee schedule for the cost of providing <br/>
<a id="pl.67.23"></a><var>67.23</var>services and equipment to licensed organizations which may not exceed 15 percent of <br/>
<a id="pl.67.24"></a><var>67.24</var>gross profits, unless a higher percentage, not to exceed 20 percent, is authorized by the <br/>
<a id="pl.67.25"></a><var>67.25</var>board. The fee schedule must incorporate costs paid to distributors for services provided <br/>
<a id="pl.67.26"></a><var>67.26</var>under subdivision 5; and<br/>
<a id="pl.67.27"></a><var>67.27</var>(3) any other information required by the board by rule.<br/>
<br/>
<a id="bill.5.45.0"></a><a id="pl.67.28"></a><var>67.28</var>    Sec. 45. Minnesota Statutes 2010, section 349.1635, is amended by adding a <br/>
<a id="pl.67.29"></a><var>67.29</var>subdivision to read:<br/>
<a id="pl.67.30"></a><var>67.30</var>    Subd. 5. <b>Linked bingo game services requirements.</b> (a) A linked bingo game <br/>
<a id="pl.67.31"></a><var>67.31</var>provider must contract with licensed distributors for linked bingo game services including, <br/>
<a id="pl.67.32"></a><var>67.32</var>but not limited to, the solicitation of agreements with licensed organizations, and <br/>
<a id="pl.67.33"></a><var>67.33</var>installation, repair, or maintenance of the linked bingo game system.<br/>
<a id="pl.68.1"></a><var>68.1</var>(b) A distributor may not charge a fee to licensed organizations for services <br/>
<a id="pl.68.2"></a><var>68.2</var>authorized and rendered under paragraph (a).<br/>
<a id="pl.68.3"></a><var>68.3</var>(c) A linked bingo game provider may not contract with any distributor on an <br/>
<a id="pl.68.4"></a><var>68.4</var>exclusive basis.<br/>
<a id="pl.68.5"></a><var>68.5</var>(d) A linked bingo game provider may refuse to contract with a licensed distributor <br/>
<a id="pl.68.6"></a><var>68.6</var>if the linked bingo game provider demonstrates that the licensed distributor is not capable <br/>
<a id="pl.68.7"></a><var>68.7</var>of performing the services under the contract.<br/>
<br/>
<a id="bill.5.46.0"></a><a id="pl.68.8"></a><var>68.8</var>    Sec. 46. Minnesota Statutes 2010, section 349.165, subdivision 2, is amended to read:<br/>
<a id="pl.68.9"></a><var>68.9</var>    Subd. 2. <b>Contents of application.</b> An application for a premises permit must <br/>
<a id="pl.68.10"></a><var>68.10</var>contain:<br/>
<a id="pl.68.11"></a><var>68.11</var>    (1) the name and address of the applying organization;<br/>
<a id="pl.68.12"></a><var>68.12</var>    (2) a description of the site for which the permit is sought, including its address and, <br/>
<a id="pl.68.13"></a><var>68.13</var>where applicable, its placement within another premises or establishment;<br/>
<a id="pl.68.14"></a><var>68.14</var>    (3) if the site is leased, the name and address of the lessor and information about the <br/>
<a id="pl.68.15"></a><var>68.15</var>lease the board requires, including all rents and other charges for the use of the site. The <br/>
<a id="pl.68.16"></a><var>68.16</var>lease term is concurrent with the term of the premises permit. The lease must contain a <br/>
<a id="pl.68.17"></a><var>68.17</var>30-day termination clause. No lease is required for the conduct of a raffle; and<br/>
<a id="pl.68.18"></a><var>68.18</var>    (4) other information the board deems necessary to carry out its purposes.<br/>
<a id="pl.68.19"></a><var>68.19</var>    An organization holding a premises permit must notify the board in writing within <br/>
<a id="pl.68.20"></a><var>68.20</var>ten days whenever any material change is made in the above information.<br/>
<br/>
<a id="bill.5.47.0"></a><a id="pl.68.21"></a><var>68.21</var>    Sec. 47. Minnesota Statutes 2010, section 349.17, subdivision 6, is amended to read:<br/>
<a id="pl.68.22"></a><var>68.22</var>    Subd. 6. <b>Conduct of bingo.</b> The price of a face played on an electronic bingo <br/>
<a id="pl.68.23"></a><var>68.23</var>device may not be less than the price of a face on a bingo paper sheet sold for the same <br/>
<a id="pl.68.24"></a><var>68.24</var>game at the same occasion. A game of bingo begins with the first letter and number called <br/>
<a id="pl.68.25"></a><var>68.25</var>or displayed. Each player must cover, mark, or activate the numbers when bingo numbers <br/>
<a id="pl.68.26"></a><var>68.26</var>are randomly selected, and announced, and or displayed to the players, either manually <br/>
<a id="pl.68.27"></a><var>68.27</var>or with a flashboard and monitor. The game is won when a player, using bingo paper, <br/>
<a id="pl.68.28"></a><var>68.28</var>bingo hard card, or a facsimile of a bingo paper sheet, has completed, as described in the <br/>
<a id="pl.68.29"></a><var>68.29</var>bingo program, a previously designated pattern or previously determined requirements <br/>
<a id="pl.68.30"></a><var>68.30</var>of the game and declared bingo. The game is completed when a winning card, sheet, or <br/>
<a id="pl.68.31"></a><var>68.31</var>facsimile is verified and a prize awarded pursuant to subdivision 3.<br/>
<br/>
<a id="bill.5.48.0"></a><a id="pl.68.32"></a><var>68.32</var>    Sec. 48. Minnesota Statutes 2010, section 349.17, subdivision 7, is amended to read:<br/>
<a id="pl.69.1"></a><var>69.1</var>    Subd. 7. <b>Bar bingo.</b> An organization may conduct bar bingo subject to the <br/>
<a id="pl.69.2"></a><var>69.2</var>following restrictions:<br/>
<a id="pl.69.3"></a><var>69.3</var>    (1) the bingo is conducted at a site the organization owns or leases and which has a <br/>
<a id="pl.69.4"></a><var>69.4</var>license for the sale of intoxicating beverages on the premises under chapter 340A; and<br/>
<a id="pl.69.5"></a><var>69.5</var>    (2) the bingo is conducted using only bingo paper sheets or facsimiles of bingo paper <br/>
<a id="pl.69.6"></a><var>69.6</var>sheets purchased from a licensed distributor or licensed linked bingo game provider; and.<br/>
<a id="pl.69.7"></a><var>69.7</var>    (3) no rent may be paid for a bar bingo occasion.<br/>
<br/>
<a id="bill.5.49.0"></a><a id="pl.69.8"></a><var>69.8</var>    Sec. 49. Minnesota Statutes 2010, section 349.17, subdivision 8, is amended to read:<br/>
<a id="pl.69.9"></a><var>69.9</var>    Subd. 8. <b>Linked bingo games.</b> (a) A licensed organization may conduct or <br/>
<a id="pl.69.10"></a><var>69.10</var>participate in not more than two linked bingo games per occasion, one of which may be a, <br/>
<a id="pl.69.11"></a><var>69.11</var>including progressive game games in which a portion of the prize is carried over from <br/>
<a id="pl.69.12"></a><var>69.12</var>one occasion game to another until won by a player achieving a valid bingo within a <br/>
<a id="pl.69.13"></a><var>69.13</var>predetermined amount of bingo numbers called based upon a predetermined and posted <br/>
<a id="pl.69.14"></a><var>69.14</var>win determination.<br/>
<a id="pl.69.15"></a><var>69.15</var>    (b) Each participating licensed organization shall contribute to each prize awarded in <br/>
<a id="pl.69.16"></a><var>69.16</var>a linked bingo game in an amount not to exceed $300. Linked bingo games may only be <br/>
<a id="pl.69.17"></a><var>69.17</var>conducted by licensed organizations who have a valid agreement with the linked bingo <br/>
<a id="pl.69.18"></a><var>69.18</var>game provider.<br/>
<a id="pl.69.19"></a><var>69.19</var>    (c) An electronic bingo device as defined in section 
         <statute_ref>349.12, subdivision 12a</statute_ref>, may <br/>
<a id="pl.69.20"></a><var>69.20</var>be used for a linked bingo game.<br/>
<a id="pl.69.21"></a><var>69.21</var>    (d) The board may adopt rules to:<br/>
<a id="pl.69.22"></a><var>69.22</var>    (1) specify the manner in which a linked bingo game must be played and how the <br/>
<a id="pl.69.23"></a><var>69.23</var>linked bingo prizes must be awarded;<br/>
<a id="pl.69.24"></a><var>69.24</var>    (2) specify the records to be maintained by a linked bingo game provider;<br/>
<a id="pl.69.25"></a><var>69.25</var>    (3) require the submission of periodic reports by the linked bingo game provider and <br/>
<a id="pl.69.26"></a><var>69.26</var>specify the content of the reports;<br/>
<a id="pl.69.27"></a><var>69.27</var>    (4) establish the qualifications required to be licensed as a linked bingo game <br/>
<a id="pl.69.28"></a><var>69.28</var>provider; and<br/>
<a id="pl.69.29"></a><var>69.29</var>    (5) any other matter involving the operation of a linked bingo game.<br/>
<br/>
<a id="bill.5.50.0"></a><a id="pl.69.30"></a><var>69.30</var>    Sec. 50. Minnesota Statutes 2010, section 349.17, is amended by adding a subdivision <br/>
<a id="pl.69.31"></a><var>69.31</var>to read:<br/>
<a id="pl.69.32"></a><var>69.32</var>    Subd. 9. <b>Linked bingo games played exclusively on electronic bingo devices.</b> In <br/>
<a id="pl.69.33"></a><var>69.33</var>addition to the requirements of subdivision 8, the following requirements and restrictions <br/>
<a id="pl.69.34"></a><var>69.34</var>apply when linked bingo games are played exclusively on electronic bingo devices.<br/>
<a id="pl.70.1"></a><var>70.1</var>(a) The permitted premises must be:<br/>
<a id="pl.70.2"></a><var>70.2</var>(1) a premises licensed for the on-sale or off-sale of intoxicating liquor or 3.2 percent <br/>
<a id="pl.70.3"></a><var>70.3</var>malt beverages, except for a general food store or drug store permitted to sell alcoholic <br/>
<a id="pl.70.4"></a><var>70.4</var>beverages under section 340A.405, subdivision 1; or<br/>
<a id="pl.70.5"></a><var>70.5</var>(2) a premises where bingo is conducted as the primary business and has a seating <br/>
<a id="pl.70.6"></a><var>70.6</var>capacity of at least 100.<br/>
<a id="pl.70.7"></a><var>70.7</var>(b) The number of electronic bingo devices is limited to:<br/>
<a id="pl.70.8"></a><var>70.8</var>(1) no more than six devices in play for permitted premises with 200 seats or less;<br/>
<a id="pl.70.9"></a><var>70.9</var>(2) no more than 12 devices in play for permitted premises with 201 seats or more; <br/>
<a id="pl.70.10"></a><var>70.10</var>and<br/>
<a id="pl.70.11"></a><var>70.11</var>(3) no more than 50 devices in play for permitted premises where bingo is the <br/>
<a id="pl.70.12"></a><var>70.12</var>primary business.<br/>
<a id="pl.70.13"></a><var>70.13</var>Seating capacity is determined as specified under the local fire code.<br/>
<a id="pl.70.14"></a><var>70.14</var>(c) Prior to a bingo occasion, the linked bingo game provider, on behalf of the <br/>
<a id="pl.70.15"></a><var>70.15</var>participating organizations, must provide to the board a bingo program in a format <br/>
<a id="pl.70.16"></a><var>70.16</var>prescribed by the board.<br/>
<a id="pl.70.17"></a><var>70.17</var>(d) Before participating in the play of a linked bingo game, a player must present <br/>
<a id="pl.70.18"></a><var>70.18</var>and register a valid picture identification card that includes the player's address and <br/>
<a id="pl.70.19"></a><var>70.19</var>date of birth.<br/>
<a id="pl.70.20"></a><var>70.20</var>(e) An organization may remove from play a device that a player has not maintained <br/>
<a id="pl.70.21"></a><var>70.21</var>in an activated mode for a specified period of time determined by the organization. The <br/>
<a id="pl.70.22"></a><var>70.22</var>organization must provide the notice in its house rules.<br/>
<br/>
<a id="bill.5.51.0"></a><a id="pl.70.23"></a><var>70.23</var>    Sec. 51. Minnesota Statutes 2010, section 349.1711, subdivision 1, is amended to read:<br/>
<a id="pl.70.24"></a><var>70.24</var>    Subdivision 1. <b>Sale of tickets.</b>  (a) Tipboard games must be played using only <br/>
<a id="pl.70.25"></a><var>70.25</var>tipboard tickets that are either (1) attached to a placard and arranged in columns or rows, <br/>
<a id="pl.70.26"></a><var>70.26</var>or (2) separate from the placard and contained in a receptacle while the game is in play. <br/>
<a id="pl.70.27"></a><var>70.27</var>The placard serves as the game flare. <br/>
<a id="pl.70.28"></a><var>70.28</var>(b) Except for a sports-themed tipboard, the placard must contain a seal that conceals <br/>
<a id="pl.70.29"></a><var>70.29</var>the winning number or symbol. When a tipboard ticket is purchased and opened from a <br/>
<a id="pl.70.30"></a><var>70.30</var>game containing more than 32 tickets, each player having a tipboard ticket with one or <br/>
<a id="pl.70.31"></a><var>70.31</var>more predesignated numbers or symbols must sign the placard at the line indicated by the <br/>
<a id="pl.70.32"></a><var>70.32</var>number or symbol on the tipboard ticket.<br/>
<br/>
<a id="bill.5.52.0"></a><a id="pl.70.33"></a><var>70.33</var>    Sec. 52. Minnesota Statutes 2010, section 349.1711, subdivision 2, is amended to read:<br/>
<a id="pl.71.1"></a><var>71.1</var>    Subd. 2. <b>Determination of winners.</b> When the predesignated numbers or symbols <br/>
<a id="pl.71.2"></a><var>71.2</var>have all been purchased, or all of the tipboard tickets for that game have been sold, <br/>
<a id="pl.71.3"></a><var>71.3</var>the seal must be removed to reveal a number or symbol that determines which of the <br/>
<a id="pl.71.4"></a><var>71.4</var>predesignated numbers or symbols is the winning number or symbol. A tipboard may also <br/>
<a id="pl.71.5"></a><var>71.5</var>contain consolation winners, or winning chances that are determined in whole or in part <br/>
<a id="pl.71.6"></a><var>71.6</var>by the numerical outcome of one or more professional sporting events, that need not be <br/>
<a id="pl.71.7"></a><var>71.7</var>determined by the use of the seal.<br/>
<br/>
<a id="bill.5.53.0"></a><a id="pl.71.8"></a><var>71.8</var>    Sec. 53. Minnesota Statutes 2010, section 349.1721, is amended to read:<br/>
<a id="pl.71.9"></a><var>71.9</var><b>349.1721 CONDUCT OF PULL-TABS.</b><br/>
<a id="pl.71.10"></a><var>71.10</var>    Subdivision 1. <b>Cumulative or carryover games.</b> The board shall by rule permit <br/>
<a id="pl.71.11"></a><var>71.11</var>pull-tab games with multiple seals. The board shall also adopt rules for pull-tab games with <br/>
<a id="pl.71.12"></a><var>71.12</var>cumulative or carryover prizes. The rules shall also apply to electronic pull-tab games.<br/>
<a id="pl.71.13"></a><var>71.13</var>    Subd. 2. <b>Event games.</b> The board shall by rule permit pull-tab games in which <br/>
<a id="pl.71.14"></a><var>71.14</var>certain winners are determined by the random selection of one or more bingo numbers <br/>
<a id="pl.71.15"></a><var>71.15</var>or by another method approved by the board. The rules shall also apply to electronic <br/>
<a id="pl.71.16"></a><var>71.16</var>pull-tab games. <br/>
<a id="pl.71.17"></a><var>71.17</var>    Subd. 3. <b>Pull-tab dispensing device location restrictions and requirements.</b><br/>
<a id="pl.71.18"></a><var>71.18</var>The following pertain to pull-tab dispensing devices as defined under section 349.12, <br/>
<a id="pl.71.19"></a><var>71.19</var>subdivision 32a.<br/>
<a id="pl.71.20"></a><var>71.20</var>(a) The use of any pull-tab dispensing device must be at a permitted premises <br/>
<a id="pl.71.21"></a><var>71.21</var>which is:<br/>
<a id="pl.71.22"></a><var>71.22</var>(1) a licensed premises for on-sale of intoxicating liquor or 3.2 percent malt <br/>
<a id="pl.71.23"></a><var>71.23</var>beverages;<br/>
<a id="pl.71.24"></a><var>71.24</var>(2) a premises where bingo is conducted as the primary business; or<br/>
<a id="pl.71.25"></a><var>71.25</var>(3) an establishment licensed for the off-sale of intoxicating liquor, other than drug <br/>
<a id="pl.71.26"></a><var>71.26</var>stores and general food stores licensed under section 340A.405, subdivision 1.<br/>
<a id="pl.71.27"></a><var>71.27</var>(b) The number of pull-tab dispensing devices located at any permitted premises <br/>
<a id="pl.71.28"></a><var>71.28</var>is limited to three.<br/>
<a id="pl.71.29"></a><var>71.29</var>    Subd. 4. <b>Electronic pull-tab device requirements and restrictions.</b> The following <br/>
<a id="pl.71.30"></a><var>71.30</var>pertain to the use of electronic pull-tab devices as defined under section 349.12, <br/>
<a id="pl.71.31"></a><var>71.31</var>subdivision 12b.<br/>
<a id="pl.71.32"></a><var>71.32</var>(a) The use of any electronic pull-tab device may only be at a permitted premises <br/>
<a id="pl.71.33"></a><var>71.33</var>that is:<br/>
<a id="pl.72.1"></a><var>72.1</var>(1) a premises licensed for the on-sale or off-sale of intoxicating liquor or 3.2 percent <br/>
<a id="pl.72.2"></a><var>72.2</var>malt beverages, except for a general food store or drug store permitted to sell alcoholic <br/>
<a id="pl.72.3"></a><var>72.3</var>beverages under section 340A.405, subdivision 1; or<br/>
<a id="pl.72.4"></a><var>72.4</var>(2) a premises where bingo is conducted as the primary business and has a seating <br/>
<a id="pl.72.5"></a><var>72.5</var>capacity of at least 100; and<br/>
<a id="pl.72.6"></a><var>72.6</var>(3) where the licensed organization sells paper pull-tabs. <br/>
<a id="pl.72.7"></a><var>72.7</var>(b) The number of electronic pull-tab devices is limited to:<br/>
<a id="pl.72.8"></a><var>72.8</var>(1) no more than six devices in play at any permitted premises with 200 seats or less;<br/>
<a id="pl.72.9"></a><var>72.9</var>(2) no more than 12 devices in play at any permitted premises with 201 seats <br/>
<a id="pl.72.10"></a><var>72.10</var>or more; and<br/>
<a id="pl.72.11"></a><var>72.11</var>(3) no more than 50 devices in play at any permitted premises where the primary <br/>
<a id="pl.72.12"></a><var>72.12</var>business is bingo.<br/>
<a id="pl.72.13"></a><var>72.13</var>Seating capacity is determined as specified under the local fire code.<br/>
<a id="pl.72.14"></a><var>72.14</var>(c) The hours of operation for the devices are limited to 8:00 a.m. to 2:00 a.m.<br/>
<a id="pl.72.15"></a><var>72.15</var>(d) All electronic pull-tab games must be sold and played on the permitted premises <br/>
<a id="pl.72.16"></a><var>72.16</var>and may not be linked to other permitted premises.<br/>
<a id="pl.72.17"></a><var>72.17</var>(e) Electronic pull-tab games may not be transferred electronically or otherwise to <br/>
<a id="pl.72.18"></a><var>72.18</var>any other location by the licensed organization.<br/>
<a id="pl.72.19"></a><var>72.19</var>(f) Electronic pull-tab games may be commingled if the games are from the same <br/>
<a id="pl.72.20"></a><var>72.20</var>family of games and manufacturer and contain the same game name, form number, type <br/>
<a id="pl.72.21"></a><var>72.21</var>of game, ticket count, prize amounts, and prize denominations. Each commingled game <br/>
<a id="pl.72.22"></a><var>72.22</var>must have a unique serial number.<br/>
<a id="pl.72.23"></a><var>72.23</var>(g) An organization may remove from play a device that a player has not maintained <br/>
<a id="pl.72.24"></a><var>72.24</var>in an activated mode for a specified period of time determined by the organization. The <br/>
<a id="pl.72.25"></a><var>72.25</var>organization must provide the notice in its house rules. <br/>
<a id="pl.72.26"></a><var>72.26</var>(h) Before participating in the play of an electronic pull-tab game, a player must <br/>
<a id="pl.72.27"></a><var>72.27</var>present and register a valid picture identification card that includes the player's address <br/>
<a id="pl.72.28"></a><var>72.28</var>and date of birth.<br/>
<a id="pl.72.29"></a><var>72.29</var>(i) Each player is limited to the use of one device at a time.<br/>
<a id="pl.72.30"></a><var>72.30</var>    Subd. 5. <b>Multiple chance games.</b> The board may permit pull-tab games in which <br/>
<a id="pl.72.31"></a><var>72.31</var>the holders of certain predesignated winning tickets, with a prize value not to exceed $75 <br/>
<a id="pl.72.32"></a><var>72.32</var>each, have the option of turning in the winning tickets for the chance to win a prize of <br/>
<a id="pl.72.33"></a><var>72.33</var>greater value.<br/>
<br/>
<a id="bill.5.54.0"></a><a id="pl.72.34"></a><var>72.34</var>    Sec. 54. Minnesota Statutes 2010, section 349.18, subdivision 1, is amended to read:<br/>
<a id="pl.73.1"></a><var>73.1</var>    Subdivision 1. <b>Lease or ownership required; rent limitations.</b> (a) An organization <br/>
<a id="pl.73.2"></a><var>73.2</var>may conduct lawful gambling only on premises it owns or leases. Leases must be on a <br/>
<a id="pl.73.3"></a><var>73.3</var>form prescribed by the board. The term of the lease is concurrent with the premises permit. <br/>
<a id="pl.73.4"></a><var>73.4</var>Leases approved by the board must specify that the board may authorize an organization <br/>
<a id="pl.73.5"></a><var>73.5</var>to withhold rent from a lessor for a period of up to 90 days if the board determines that <br/>
<a id="pl.73.6"></a><var>73.6</var>illegal gambling occurred on the premises or that the lessor or its employees participated <br/>
<a id="pl.73.7"></a><var>73.7</var>in the illegal gambling or knew of the gambling and did not take prompt action to stop the <br/>
<a id="pl.73.8"></a><var>73.8</var>gambling. The lease must authorize the continued tenancy of the organization without <br/>
<a id="pl.73.9"></a><var>73.9</var>the payment of rent during the time period determined by the board under this paragraph. <br/>
<a id="pl.73.10"></a><var>73.10</var>Copies of all leases must be made available to employees of the board and the Division of <br/>
<a id="pl.73.11"></a><var>73.11</var>Alcohol and Gambling Enforcement on request.<br/>
<a id="pl.73.12"></a><var>73.12</var>    (b) Rent paid by an organization for leased premises for the conduct of pull-tabs, <br/>
<a id="pl.73.13"></a><var>73.13</var>tipboards, and paddle wheels lawful gambling is subject to the following limits and <br/>
<a id="pl.73.14"></a><var>73.14</var>restrictions:<br/>
<a id="pl.73.15"></a><var>73.15</var>    (1) For booth operations, including booth operations where a pull-tab dispensing <br/>
<a id="pl.73.16"></a><var>73.16</var>device is located, booth operations where a bar operation is also conducted, and booth <br/>
<a id="pl.73.17"></a><var>73.17</var>operations where both a pull-tab dispensing device is located and a bar operation is also <br/>
<a id="pl.73.18"></a><var>73.18</var>conducted, the maximum rent is: monthly rent may not exceed ten percent of gross profits <br/>
<a id="pl.73.19"></a><var>73.19</var>for that month. Total rent paid to a lessor from all organizations from leases governed by <br/>
<a id="pl.73.20"></a><var>73.20</var>this clause may not exceed $1,750 per month.<br/>
<a id="pl.73.21"></a><var>73.21</var>    (i) in any month where the organization's gross profit at those premises does not <br/>
<a id="pl.73.22"></a><var>73.22</var>exceed $4,000, up to $400; and<br/>
<a id="pl.73.23"></a><var>73.23</var>    (ii) in any month where the organization's gross profit at those premises exceeds <br/>
<a id="pl.73.24"></a><var>73.24</var>$4,000, up to $400 plus not more than ten percent of the gross profit for that month in <br/>
<a id="pl.73.25"></a><var>73.25</var>excess of $4,000;<br/>
<a id="pl.73.26"></a><var>73.26</var>    (2) For bar operations, including bar operations where a pull-tab dispensing device <br/>
<a id="pl.73.27"></a><var>73.27</var>is located but not including bar operations subject to clause (1), and for locations where <br/>
<a id="pl.73.28"></a><var>73.28</var>only a pull-tab dispensing device is located: monthly rent may not exceed:<br/>
<a id="pl.73.29"></a><var>73.29</var>(i) 15 percent of the gross profits for that month from pull-tabs sold from a pull-tab <br/>
<a id="pl.73.30"></a><var>73.30</var>dispensing device, electronic pull-tab games, and electronic linked bingo games; and<br/>
<a id="pl.73.31"></a><var>73.31</var>(ii) more than 20 percent of gross profits from all other forms of lawful gambling.<br/>
<a id="pl.73.32"></a><var>73.32</var>    (i) in any month where the organization's gross profit at those premises does not <br/>
<a id="pl.73.33"></a><var>73.33</var>exceed $1,000, up to $200; and<br/>
<a id="pl.73.34"></a><var>73.34</var>    (ii) in any month where the organization's gross profit at those premises exceeds <br/>
<a id="pl.73.35"></a><var>73.35</var>$1,000, up to $200 plus not more than 20 percent of the gross profit for that month <br/>
<a id="pl.73.36"></a><var>73.36</var>in excess of $1,000;<br/>
<a id="pl.74.1"></a><var>74.1</var>    (3) a lease not governed by clauses (1) and (2) must be approved by the board before <br/>
<a id="pl.74.2"></a><var>74.2</var>becoming effective; For electronic linked bingo games and electronic pull-tab games that <br/>
<a id="pl.74.3"></a><var>74.3</var>are operated for separate time periods within a business day by an organization and the <br/>
<a id="pl.74.4"></a><var>74.4</var>lessor, monthly rent may not be more than:<br/>
<a id="pl.74.5"></a><var>74.5</var>(i) 15 percent of the gross profits for that month for the time periods operated by <br/>
<a id="pl.74.6"></a><var>74.6</var>the lessor. The lessor is responsible for cash shortages that occur during the time periods <br/>
<a id="pl.74.7"></a><var>74.7</var>the games are operated by the lessor; and<br/>
<a id="pl.74.8"></a><var>74.8</var>(ii) ten percent of gross profits for that month for the time periods operated by the <br/>
<a id="pl.74.9"></a><var>74.9</var>organization. The organization is responsible for cash shortages that occur during the time <br/>
<a id="pl.74.10"></a><var>74.10</var>periods the games are operated by the organization.<br/>
<a id="pl.74.11"></a><var>74.11</var>    (4) total rent paid to a lessor from all organizations from leases governed by clause <br/>
<a id="pl.74.12"></a><var>74.12</var>(1) may not exceed $1,750 per month.<br/>
<a id="pl.74.13"></a><var>74.13</var>    (c) Rent paid by an organization for leased premises for the conduct of bingo is <br/>
<a id="pl.74.14"></a><var>74.14</var>subject to either of the following limits at the option of the parties to the lease:<br/>
<a id="pl.74.15"></a><var>74.15</var>    (1) (4) For bingo conducted at a leased premises where the primary business is <br/>
<a id="pl.74.16"></a><var>74.16</var>bingo, rent is limited to either not more than ten percent of the monthly gross profit from <br/>
<a id="pl.74.17"></a><var>74.17</var>all lawful gambling activities held during bingo occasions, excluding bar bingo or at a <br/>
<a id="pl.74.18"></a><var>74.18</var>rate based on a cost per square foot not to exceed 110 percent of a comparable cost per <br/>
<a id="pl.74.19"></a><var>74.19</var>square foot for leased space as approved by the director; and.<br/>
<a id="pl.74.20"></a><var>74.20</var>    (2) (5) No rent may be paid for bar bingo as defined in section 349.12, subdivision 3c.<br/>
<a id="pl.74.21"></a><var>74.21</var>(6) A lease not governed by clauses (1) to (5) must be approved by the director <br/>
<a id="pl.74.22"></a><var>74.22</var>before becoming effective.<br/>
<a id="pl.74.23"></a><var>74.23</var>    (d) (c) Amounts paid as rent under leases are all-inclusive. No other services or <br/>
<a id="pl.74.24"></a><var>74.24</var>expenses provided or contracted by the lessor may be paid by the organization, including, <br/>
<a id="pl.74.25"></a><var>74.25</var>but not limited to, trash removal, janitorial and cleaning services, snow removal, lawn <br/>
<a id="pl.74.26"></a><var>74.26</var>services, electricity, heat, security, security monitoring, storage, and other utilities or <br/>
<a id="pl.74.27"></a><var>74.27</var>services, and, in the case of bar operations, cash shortages, unless approved by the <br/>
<a id="pl.74.28"></a><var>74.28</var>director. The lessor shall be responsible for the cost of any communications network or <br/>
<a id="pl.74.29"></a><var>74.29</var>service required to conduct electronic pull-tab games or electronic bingo games. Any <br/>
<a id="pl.74.30"></a><var>74.30</var>other expenditure made by an organization that is related to a leased premises must be <br/>
<a id="pl.74.31"></a><var>74.31</var>approved by the director. For bar operations, the lessor is responsible for cash shortages. <br/>
<a id="pl.74.32"></a><var>74.32</var>An organization may not provide any compensation or thing of value to a lessor or the <br/>
<a id="pl.74.33"></a><var>74.33</var>lessor's employees from any fund source other than its gambling account. Rent payments <br/>
<a id="pl.74.34"></a><var>74.34</var>may not be made to an individual.<br/>
<a id="pl.75.1"></a><var>75.1</var>    (e) (d) Notwithstanding paragraph (b), an organization may pay a lessor for food <br/>
<a id="pl.75.2"></a><var>75.2</var>or beverages or meeting room rental if the charge made is comparable to similar charges <br/>
<a id="pl.75.3"></a><var>75.3</var>made to other individuals or groups.<br/>
<a id="pl.75.4"></a><var>75.4</var>    (f) No entity other than the (e) A licensed organization may not conduct any activity <br/>
<a id="pl.75.5"></a><var>75.5</var>within a booth operation on behalf of the lessor on a leased premises.<br/>
<br/>
<a id="bill.5.55.0"></a><a id="pl.75.6"></a><var>75.6</var>    Sec. 55. Minnesota Statutes 2010, section 349.19, subdivision 2, is amended to read:<br/>
<a id="pl.75.7"></a><var>75.7</var>    Subd. 2. <b>Accounts.</b> (a) Gross receipts from lawful gambling by each organization <br/>
<a id="pl.75.8"></a><var>75.8</var>must be segregated from all other revenues of the conducting organization and placed in a <br/>
<a id="pl.75.9"></a><var>75.9</var>separate gambling bank account.<br/>
<a id="pl.75.10"></a><var>75.10</var>(b) All expenditures for allowable expenses, taxes, and lawful purposes must be <br/>
<a id="pl.75.11"></a><var>75.11</var>made from the separate account except (1) in the case of expenditures previously approved <br/>
<a id="pl.75.12"></a><var>75.12</var>by the organization's membership for emergencies as defined by board rule, (2) as provided <br/>
<a id="pl.75.13"></a><var>75.13</var>in subdivision 2a, or (3) when restricted to one electronic fund transaction for the payment <br/>
<a id="pl.75.14"></a><var>75.14</var>of taxes for the organization as a whole, the organization may transfer the amount of taxes <br/>
<a id="pl.75.15"></a><var>75.15</var>related to the conduct of gambling to the general account at the time when due and payable.<br/>
<a id="pl.75.16"></a><var>75.16</var>(c) The name and address of the bank, the account number for the separate account, <br/>
<a id="pl.75.17"></a><var>75.17</var>and the names of organization members authorized as signatories on the separate account <br/>
<a id="pl.75.18"></a><var>75.18</var>must be provided to the board when the application is submitted. Changes in the <br/>
<a id="pl.75.19"></a><var>75.19</var>information must be submitted to the board at least ten days before the change is made.<br/>
<a id="pl.75.20"></a><var>75.20</var>(d) Except for gambling receipts from electronic pull-tab games and linked <br/>
<a id="pl.75.21"></a><var>75.21</var>electronic bingo games, gambling receipts must be deposited into the gambling bank <br/>
<a id="pl.75.22"></a><var>75.22</var>account within four business days of completion of the bingo occasion, deal, or game from <br/>
<a id="pl.75.23"></a><var>75.23</var>which they are received.<br/>
<a id="pl.75.24"></a><var>75.24</var>(1) A deal of paper pull-tabs is considered complete when either the last pull-tab of <br/>
<a id="pl.75.25"></a><var>75.25</var>the deal is sold or the organization does not continue the play of the deal during the next <br/>
<a id="pl.75.26"></a><var>75.26</var>scheduled period of time in which the organization will conduct pull-tabs.<br/>
<a id="pl.75.27"></a><var>75.27</var>(2) A tipboard game is considered complete when the seal on the game flare is <br/>
<a id="pl.75.28"></a><var>75.28</var>uncovered or the organization does not continue the play of the deal during the next <br/>
<a id="pl.75.29"></a><var>75.29</var>scheduled period of time in which the organization will conduct tipboards.<br/>
<a id="pl.75.30"></a><var>75.30</var>(e) Gambling receipts from all electronic pull-tab games and all linked electronic <br/>
<a id="pl.75.31"></a><var>75.31</var>bingo games must be recorded on a daily basis and deposited into the gambling bank <br/>
<a id="pl.75.32"></a><var>75.32</var>account within two business days.<br/>
<a id="pl.75.33"></a><var>75.33</var>(e) (f) Deposit records must be sufficient to allow determination of deposits made <br/>
<a id="pl.75.34"></a><var>75.34</var>from each bingo occasion, deal, or game at each permitted premises.<br/>
<a id="pl.76.1"></a><var>76.1</var>(f) (g) The person who accounts for gambling gross receipts and profits may not be <br/>
<a id="pl.76.2"></a><var>76.2</var>the same person who accounts for other revenues of the organization.<br/>
<br/>
<a id="bill.5.56.0"></a><a id="pl.76.3"></a><var>76.3</var>    Sec. 56. Minnesota Statutes 2010, section 349.19, subdivision 3, is amended to read:<br/>
<a id="pl.76.4"></a><var>76.4</var>    Subd. 3. <b>Expenditures.</b> (a) All expenditures of gross profits from lawful gambling <br/>
<a id="pl.76.5"></a><var>76.5</var>must be itemized as to payee, purpose, amount, and date of payment.<br/>
<a id="pl.76.6"></a><var>76.6</var>(b) Each licensed organization must report monthly to the board on a form in an <br/>
<a id="pl.76.7"></a><var>76.7</var>electronic format prescribed by the board each expenditure or contribution of net profits <br/>
<a id="pl.76.8"></a><var>76.8</var>from lawful gambling. The reports must provide for each expenditure or contribution:<br/>
<a id="pl.76.9"></a><var>76.9</var>(1) the name of the recipient of the expenditure or contribution;<br/>
<a id="pl.76.10"></a><var>76.10</var>(2) the date the expenditure or contribution was approved by the organization;<br/>
<a id="pl.76.11"></a><var>76.11</var>(3) the date, amount, and check number or electronic transfer confirmation number <br/>
<a id="pl.76.12"></a><var>76.12</var>of the expenditure or contribution;<br/>
<a id="pl.76.13"></a><var>76.13</var>(4) a brief description of how the expenditure or contribution meets one or more of <br/>
<a id="pl.76.14"></a><var>76.14</var>the purposes in section 
         <statute_ref>349.12, subdivision 25</statute_ref>; and<br/>
<a id="pl.76.15"></a><var>76.15</var>(5) in the case of expenditures authorized under section 
         <statute_ref>349.12, subdivision 25</statute_ref>, <br/>
<a id="pl.76.16"></a><var>76.16</var>paragraph (a), clause (7), whether the expenditure is for a facility or activity that primarily <br/>
<a id="pl.76.17"></a><var>76.17</var>benefits male or female participants.<br/>
<a id="pl.76.18"></a><var>76.18</var>(c) Authorization of the expenditures must be recorded in the monthly meeting <br/>
<a id="pl.76.19"></a><var>76.19</var>minutes of the licensed organization.<br/>
<a id="pl.76.20"></a><var>76.20</var>(d) Checks or authorizations for electronic fund transfers for expenditures of gross <br/>
<a id="pl.76.21"></a><var>76.21</var>profits must be signed by at least two persons authorized by board rules to sign the <br/>
<a id="pl.76.22"></a><var>76.22</var>checks or authorizations.<br/>
<a id="pl.76.23"></a><var>76.23</var>(e) Expenditures of gross profits from lawful gambling for local, state, and federal <br/>
<a id="pl.76.24"></a><var>76.24</var>taxes as identified in section 
         <statute_ref>349.12, subdivision 25</statute_ref>, paragraph (a), clause (8), may be <br/>
<a id="pl.76.25"></a><var>76.25</var>transferred electronically from the organization's gambling account directly to bank <br/>
<a id="pl.76.26"></a><var>76.26</var>accounts identified by local, state, or federal agencies if the organization's gambling <br/>
<a id="pl.76.27"></a><var>76.27</var>account monthly bank statement specifically identifies the payee by name, the amount <br/>
<a id="pl.76.28"></a><var>76.28</var>transferred, and the date of the transaction.<br/>
<a id="pl.76.29"></a><var>76.29</var>(f) Expenditures of gross profits from lawful gambling for payments for lawful <br/>
<a id="pl.76.30"></a><var>76.30</var>purpose expenditures and allowable expenses may be transferred electronically from the <br/>
<a id="pl.76.31"></a><var>76.31</var>organization's gambling account directly to bank accounts identified by the vendor if the <br/>
<a id="pl.76.32"></a><var>76.32</var>organization's gambling account monthly bank statement specifically identifies the payee <br/>
<a id="pl.76.33"></a><var>76.33</var>by name, the amount transferred, the account number of the account into which the funds <br/>
<a id="pl.76.34"></a><var>76.34</var>were transferred, and the date of the transaction.<br/>
<a id="pl.77.1"></a><var>77.1</var>(g) Expenditures of gross profits from lawful gambling for payroll compensation <br/>
<a id="pl.77.2"></a><var>77.2</var>to an employee's account and for the payment of local, state, and federal withholding <br/>
<a id="pl.77.3"></a><var>77.3</var>taxes may be transferred electronically to and from the account of a payroll processing <br/>
<a id="pl.77.4"></a><var>77.4</var>firm provided that the firm:<br/>
<a id="pl.77.5"></a><var>77.5</var>(1) is currently registered with and meets the criteria of the Department of Revenue <br/>
<a id="pl.77.6"></a><var>77.6</var>as a third-party bulk filer under section 
         <statute_ref>290.92, subdivision 30</statute_ref>;<br/>
<a id="pl.77.7"></a><var>77.7</var>(2) is able to provide proof of a third-party audit and an annual report and statement <br/>
<a id="pl.77.8"></a><var>77.8</var>of financial condition;<br/>
<a id="pl.77.9"></a><var>77.9</var>(3) is able to provide evidence of a fidelity bond; and<br/>
<a id="pl.77.10"></a><var>77.10</var>(4) can provide proof of having been in business as a third-party bulk filer for the <br/>
<a id="pl.77.11"></a><var>77.11</var>most recent three years.<br/>
<a id="pl.77.12"></a><var>77.12</var>(h) Electronic payments of taxes, lawful purpose expenditures, and allowable <br/>
<a id="pl.77.13"></a><var>77.13</var>expenses are permitted only if they have been authorized by the membership, the <br/>
<a id="pl.77.14"></a><var>77.14</var>organization maintains supporting documentation, and the expenditures can be verified.<br/>
<a id="pl.77.15"></a><var>77.15</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2012.<br/>
<br/>
<a id="bill.5.57.0"></a><a id="pl.77.16"></a><var>77.16</var>    Sec. 57. Minnesota Statutes 2010, section 349.19, subdivision 5, is amended to read:<br/>
<a id="pl.77.17"></a><var>77.17</var>    Subd. 5. <b>Reports.</b> (a) A licensed organization must report monthly to the <br/>
<a id="pl.77.18"></a><var>77.18</var>Department of Revenue board in an electronic format prescribed by the board and to its <br/>
<a id="pl.77.19"></a><var>77.19</var>membership monthly, or quarterly in the case of a licensed organization which does not <br/>
<a id="pl.77.20"></a><var>77.20</var>report more than $1,000 in gross receipts from lawful gambling in any calendar quarter, <br/>
<a id="pl.77.21"></a><var>77.21</var>on its gross receipts, expenses, profits, and expenditure of profits from lawful gambling <br/>
<a id="pl.77.22"></a><var>77.22</var>for each permitted premises. The organization must account for and report on each form <br/>
<a id="pl.77.23"></a><var>77.23</var>of lawful gambling conducted. The report organization must include a reconciliation of <br/>
<a id="pl.77.24"></a><var>77.24</var>the organization's profit carryover with its cash balance on hand. If the organization <br/>
<a id="pl.77.25"></a><var>77.25</var>conducts both bingo and other forms of lawful gambling, the figures for both must be <br/>
<a id="pl.77.26"></a><var>77.26</var>reported separately.<br/>
<a id="pl.77.27"></a><var>77.27</var>(b) The organization must report annually to its membership and annually file with <br/>
<a id="pl.77.28"></a><var>77.28</var>the board a financial summary report in a format prescribed by the board that identifies the <br/>
<a id="pl.77.29"></a><var>77.29</var>organization's receipts and use of lawful gambling proceeds, including: monthly to the <br/>
<a id="pl.77.30"></a><var>77.30</var>commissioner of revenue as required under section 297E.06.<br/>
<a id="pl.77.31"></a><var>77.31</var>(1) gross receipts;<br/>
<a id="pl.77.32"></a><var>77.32</var>(2) prizes paid;<br/>
<a id="pl.77.33"></a><var>77.33</var>(3) allowable expenses;<br/>
<a id="pl.78.1"></a><var>78.1</var>(4) lawful purpose expenditures, including annual totals for types of charitable <br/>
<a id="pl.78.2"></a><var>78.2</var>contributions and all taxes and fees as per section 
<statute_ref>349.12, subdivision 25</statute_ref>, paragraph <br/>
<a id="pl.78.3"></a><var>78.3</var>(a), clauses (8) and (18);<br/>
<a id="pl.78.4"></a><var>78.4</var>(5) the percentage of annual gross profits used for charitable contributions; and<br/>
<a id="pl.78.5"></a><var>78.5</var>(6) the percentage of annual gross profits used for all taxes and fees as per section <br/>
<a id="pl.78.6"></a><var>78.6</var><statute_ref>349.12, subdivision 25</statute_ref>, paragraph (a), clauses (8) and (18).<br/>
<a id="pl.78.7"></a><var>78.7</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2012.<br/>
<br/>
<a id="bill.5.58.0"></a><a id="pl.78.8"></a><var>78.8</var>    Sec. 58. Minnesota Statutes 2010, section 349.19, subdivision 10, is amended to read:<br/>
<a id="pl.78.9"></a><var>78.9</var>    Subd. 10. <b>Pull-tab records.</b> (a) The board shall by rule require a licensed <br/>
<a id="pl.78.10"></a><var>78.10</var>organization to require each winner of a paper pull-tab prize of $50 or more to present <br/>
<a id="pl.78.11"></a><var>78.11</var>identification in the form of a driver's license, Minnesota identification card, or other <br/>
<a id="pl.78.12"></a><var>78.12</var>identification the board deems sufficient to allow the identification and tracking of the <br/>
<a id="pl.78.13"></a><var>78.13</var>winner. The rule must require the organization to retain winning paper pull-tabs of $50 or <br/>
<a id="pl.78.14"></a><var>78.14</var>more, and the identification of the winner of the pull-tab, for 3-1/2 years.<br/>
<a id="pl.78.15"></a><var>78.15</var>    (b) An organization must maintain separate cash banks for each deal of paper <br/>
<a id="pl.78.16"></a><var>78.16</var>pull-tabs unless (1) the licensed organization uses a pull-tab dispensing device, or (2) the <br/>
<a id="pl.78.17"></a><var>78.17</var>organization uses a cash register, of a type approved by the board, which records all <br/>
<a id="pl.78.18"></a><var>78.18</var>sales of paper pull-tabs by separate deals.<br/>
<a id="pl.78.19"></a><var>78.19</var>    (c) The board shall:<br/>
<a id="pl.78.20"></a><var>78.20</var>    (1) by rule adopt minimum technical standards for cash registers that may be used <br/>
<a id="pl.78.21"></a><var>78.21</var>by organizations, and shall approve for use by organizations any cash register that meets <br/>
<a id="pl.78.22"></a><var>78.22</var>the standards; and<br/>
<a id="pl.78.23"></a><var>78.23</var>    (2) before allowing an organization to use a cash register that commingles receipts <br/>
<a id="pl.78.24"></a><var>78.24</var>from several different paper pull-tab games in play, adopt rules that define how cash <br/>
<a id="pl.78.25"></a><var>78.25</var>registers may be used and that establish a procedure for organizations to reconcile all <br/>
<a id="pl.78.26"></a><var>78.26</var>pull-tab games in play at the end of each month.<br/>
<br/>
<a id="bill.5.59.0"></a><a id="pl.78.27"></a><var>78.27</var>    Sec. 59. Minnesota Statutes 2010, section 349.211, subdivision 1a, is amended to read:<br/>
<a id="pl.78.28"></a><var>78.28</var>    Subd. 1a. <b>Linked bingo prizes.</b> Prizes for a linked bingo game shall be limited <br/>
<a id="pl.78.29"></a><var>78.29</var>as follows:<br/>
<a id="pl.78.30"></a><var>78.30</var>(1) no organization may contribute more than $300 per linked bingo game to a <br/>
<a id="pl.78.31"></a><var>78.31</var>linked bingo prize pool for linked bingo games played without electronic bingo devices, <br/>
<a id="pl.78.32"></a><var>78.32</var>an organization may not contribute to a linked bingo game prize pool more than $300 <br/>
<a id="pl.78.33"></a><var>78.33</var>per linked bingo game per site;<br/>
<a id="pl.79.1"></a><var>79.1</var>(2) for linked bingo games played exclusively with electronic bingo devices, an <br/>
<a id="pl.79.2"></a><var>79.2</var>organization may not contribute more than 85 percent of the gross receipts per permitted <br/>
<a id="pl.79.3"></a><var>79.3</var>premises to a linked bingo game prize pool;<br/>
<a id="pl.79.4"></a><var>79.4</var>(2) (3) no organization may award more than $200 for a linked bingo game <br/>
<a id="pl.79.5"></a><var>79.5</var>consolation prize. For purposes of this subdivision, a linked bingo game consolation <br/>
<a id="pl.79.6"></a><var>79.6</var>prize is a prize awarded by an organization after a prize from the linked bingo prize pool <br/>
<a id="pl.79.7"></a><var>79.7</var>has been won; and<br/>
<a id="pl.79.8"></a><var>79.8</var>    (3) (4) for a progressive linked bingo game, if no player declares a valid bingo <br/>
<a id="pl.79.9"></a><var>79.9</var>within the for a progressive prize or prizes based on a predetermined amount of bingo <br/>
<a id="pl.79.10"></a><var>79.10</var>numbers called and posted win determination, a portion of the prize is gross receipts <br/>
<a id="pl.79.11"></a><var>79.11</var>may be carried over to another occasion game until the accumulated progressive prize <br/>
<a id="pl.79.12"></a><var>79.12</var>is won. The portion of the prize that is not carried over must be awarded to the first <br/>
<a id="pl.79.13"></a><var>79.13</var>player or players who declares a valid bingo as additional numbers are called. If a valid <br/>
<a id="pl.79.14"></a><var>79.14</var>bingo is declared within the predetermined amount of bingo numbers called, the entire <br/>
<a id="pl.79.15"></a><var>79.15</var>prize pool for that game is awarded to the winner. The annual limit for progressive bingo <br/>
<a id="pl.79.16"></a><var>79.16</var>game prizes contained in subdivision 2 must be reduced by the amount an organization <br/>
<a id="pl.79.17"></a><var>79.17</var>contributes to progressive linked bingo games during the same calendar year.; and<br/>
<a id="pl.79.18"></a><var>79.18</var>(5) for linked bingo games played exclusively with electronic bingo devices, linked <br/>
<a id="pl.79.19"></a><var>79.19</var>bingo prizes in excess of $599 shall be paid by the linked bingo game provider to the <br/>
<a id="pl.79.20"></a><var>79.20</var>player within three business days. Winners of linked bingo prizes in excess of $599 will <br/>
<a id="pl.79.21"></a><var>79.21</var>be given a receipt or claim voucher as proof of a win.<br/>
<br/>
<a id="bill.5.60.0"></a><a id="pl.79.22"></a><var>79.22</var>    Sec. 60. Minnesota Statutes 2010, section 349.211, subdivision 2c, is amended to read:<br/>
<a id="pl.79.23"></a><var>79.23</var>    Subd. 2c. <b>Tipboard prizes.</b>  (a) The maximum prize which may be awarded for <br/>
<a id="pl.79.24"></a><var>79.24</var>a tipboard ticket is $599 for $2 and under tipboard tickets, $899 for $3 tipboard tickets, <br/>
<a id="pl.79.25"></a><var>79.25</var>$1,199 for $4 tipboard tickets, and $1,499 for $5 tipboard tickets, not including any <br/>
<a id="pl.79.26"></a><var>79.26</var>cumulative or carryover prizes. Cumulative or carryover prizes in tipboard games shall <br/>
<a id="pl.79.27"></a><var>79.27</var>not exceed $2,500. An organization may not sell any tipboard ticket for more than $5.<br/>
<a id="pl.79.28"></a><var>79.28</var>(b) For sports-themed tipboards, the total prize payout may not exceed the amount in <br/>
<a id="pl.79.29"></a><var>79.29</var>section 349.2113, and each chance or ticket may not be sold for more than $10.<br/>
<br/>
<a id="bill.5.61.0"></a><a id="pl.79.30"></a><var>79.30</var>    Sec. 61. <b>SEVERABILITY.</b><br/>
<a id="pl.79.31"></a><var>79.31</var>If any provision of this act is found to be invalid because it is in conflict with a <br/>
<a id="pl.79.32"></a><var>79.32</var>provision of the Minnesota Constitution or the Constitution of the United States, or for any <br/>
<a id="pl.79.33"></a><var>79.33</var>other reason, all other provisions of this act shall remain valid and any rights, remedies, <br/>
<a id="pl.80.1"></a><var>80.1</var>and privileges that have been otherwise accrued by this act, shall remain in effect and may <br/>
<a id="pl.80.2"></a><var>80.2</var>be proceeded with and concluded under this act.<br/>
<br/>
<a id="bill.5.62.0"></a><a id="pl.80.3"></a><var>80.3</var>    Sec. 62. <b>APPROPRIATION.</b><br/>
<a id="pl.80.4"></a><var>80.4</var>$1,219,000 in fiscal year 2013 is appropriated from the lawful gambling regulation <br/>
<a id="pl.80.5"></a><var>80.5</var>account in the special revenue fund to the Gambling Control Board for operating expenses <br/>
<a id="pl.80.6"></a><var>80.6</var>related to the regulatory oversight of lawful gambling for electronic pull-tabs and <br/>
<a id="pl.80.7"></a><var>80.7</var>electronic linked bingo.<br/>
<br/>
<a id="bill.5.63.0"></a><a id="pl.80.8"></a><var>80.8</var>    Sec. 63. <b> REPEALER.</b><br/>
<a id="pl.80.9"></a><var>80.9</var>Minnesota Statutes 2010, sections 297E.02, subdivision 4; 349.15, subdivision 3; <br/>
<a id="pl.80.10"></a><var>80.10</var>and 349.19, subdivision 2a, are repealed.<br/>
<a id="pl.80.11"></a><var>80.11</var><b>EFFECTIVE DATE.</b>This section is effective for games sold by a licensed <br/>
<a id="pl.80.12"></a><var>80.12</var>distributor after June 30, 2012, and the commissioner of revenue retains the authority to <br/>
<a id="pl.80.13"></a><var>80.13</var>issue refunds under Minnesota Statutes 2010, section 297E.02, subdivision 4, paragraph <br/>
<a id="pl.80.14"></a><var>80.14</var>(d), for games sold before July 1, 2012.<br/>
<br/>
<a id="bill.5.64.0"></a><a id="pl.80.15"></a><var>80.15</var>    Sec. 64. <b>EFFECTIVE DATE.</b><br/>
<a id="pl.80.16"></a><var>80.16</var>Unless otherwise specifically provided, this act is effective the day following final <br/>
<a id="pl.80.17"></a><var>80.17</var>enactment.<br/>
<br/>
<a id="bill.6.0.0"></a>

<a id="bill.6.1.0"></a><a id="pl.80.20"></a><var>80.20</var>    Section 1. <b>USE OF THE STADIUM.</b><br/>
<a id="pl.80.21"></a><var>80.21</var>    Subdivision 1. <b>Amateur sports use.</b> The lessee of the stadium must make the <br/>
<a id="pl.80.22"></a><var>80.22</var>facilities of the stadium available to the Minnesota Amateur Sports Commission up to <br/>
<a id="pl.80.23"></a><var>80.23</var>ten days each year on terms satisfactory to the commission for amateur sports activities <br/>
<a id="pl.80.24"></a><var>80.24</var>consistent with Minnesota Statutes, chapter 240A, each year during the time the bonds <br/>
<a id="pl.80.25"></a><var>80.25</var>issued pursuant to this act are outstanding. The commission must negotiate in good faith <br/>
<a id="pl.80.26"></a><var>80.26</var>and may be required to pay no more than actual out-of-pocket expenses for the time <br/>
<a id="pl.80.27"></a><var>80.27</var>it uses the stadium.<br/>
<a id="pl.80.28"></a><var>80.28</var>    Subd. 2. <b>High school league.</b> The lessee of the stadium must make the facilities of <br/>
<a id="pl.80.29"></a><var>80.29</var>the stadium available for use by the Minnesota State High School League for at least seven <br/>
<a id="pl.80.30"></a><var>80.30</var>days each year for high school soccer and football tournaments. The lessee of the stadium <br/>
<a id="pl.81.1"></a><var>81.1</var>must provide, and may not charge the league a fee for, this use, including security, ticket <br/>
<a id="pl.81.2"></a><var>81.2</var>takers, custodial or cleaning services, or other similar services in connection with this use.<br/>
<br/>
<a id="bill.7.0.0"></a>

<a id="bill.7.1.0"></a><a id="pl.81.5"></a><var>81.5</var>    Section 1. <b>[16A.1524] BACKUP REVENUES; FOOTBALL STADIUM </b><br/>
<a id="pl.81.6"></a><var>81.6</var><b>FUNDING.</b><br/>
<a id="pl.81.7"></a><var>81.7</var>    (a) If the commissioner of management and budget determines that the amount of <br/>
<a id="pl.81.8"></a><var>81.8</var>revenues under section 16A.965, subdivision 8, paragraph (a), for the next fiscal year will <br/>
<a id="pl.81.9"></a><var>81.9</var>be less than the amounts specified in section 16A.965, subdivision 8, paragraph (b), for <br/>
<a id="pl.81.10"></a><var>81.10</var>that fiscal year, the commissioner may implement the revenue options authorized in this <br/>
<a id="pl.81.11"></a><var>81.11</var>article. If the commissioner determines to exercise the authority under this section for <br/>
<a id="pl.81.12"></a><var>81.12</var>a fiscal year, the commissioner must implement the revenue options, as necessary, in <br/>
<a id="pl.81.13"></a><var>81.13</var>the following order:<br/>
<a id="pl.81.14"></a><var>81.14</var>(1) a tax on luxury boxes as provided under section 473J.14, paragraph (a), clause <br/>
<a id="pl.81.15"></a><var>81.15</var>(1);<br/>
<a id="pl.81.16"></a><var>81.16</var>    (2) a sports-themed lottery game under section 349A.20;<br/>
<a id="pl.81.17"></a><var>81.17</var>(3) an extension of the convention center taxes under article 4 through calendar <br/>
<a id="pl.81.18"></a><var>81.18</var>year 2050;<br/>
<a id="pl.81.19"></a><var>81.19</var>    (4) excess revenue from Hennepin County tax as provided under section 473.757, <br/>
<a id="pl.81.20"></a><var>81.20</var>subdivision 11, paragraph (d); and<br/>
<a id="pl.81.21"></a><var>81.21</var>    (5) an admissions tax, as provided under section 473J.14, paragraph (a), clause (2).<br/>
<a id="pl.81.22"></a><var>81.22</var>    (b) Revenue raised under the authority granted by this section must be deposited <br/>
<a id="pl.81.23"></a><var>81.23</var>in the general fund.<br/>
<a id="pl.81.24"></a><var>81.24</var>    (c) If the commissioner determines to implement one or more of the revenue options <br/>
<a id="pl.81.25"></a><var>81.25</var>authorized by this section, each subsequent year the commissioner must determine if <br/>
<a id="pl.81.26"></a><var>81.26</var>the revenue is needed and will be imposed and collected for the next fiscal year. If the <br/>
<a id="pl.81.27"></a><var>81.27</var>commissioner determines that one or more revenue options implemented for a fiscal year <br/>
<a id="pl.81.28"></a><var>81.28</var>are not needed for a subsequent fiscal year, the commissioner must terminate them in the <br/>
<a id="pl.81.29"></a><var>81.29</var>reverse order they were required to be implemented by paragraph (a) with the last option <br/>
<a id="pl.81.30"></a><var>81.30</var>implemented terminated first and so forth.<br/>
<a id="pl.81.31"></a><var>81.31</var>    (d) Before implementing a revenue source authorized under this section, the <br/>
<a id="pl.81.32"></a><var>81.32</var>commissioner must report the intent to do so to the Legislative Commission on Planning <br/>
<a id="pl.81.33"></a><var>81.33</var>and Fiscal Policy. The commissioner must inform the commission of determinations to <br/>
<a id="pl.81.34"></a><var>81.34</var>continue or discontinue each revenue source for a subsequent fiscal year.<br/>
<br/>
<a id="bill.7.2.0"></a><a id="pl.82.1"></a><var>82.1</var>    Sec. 2. <b>[349A.20] STADIUM, SPORTS-THEMED GAME.</b><br/>
<a id="pl.82.2"></a><var>82.2</var>    The State Lottery shall conduct a game based on stadium or professional sports <br/>
<a id="pl.82.3"></a><var>82.3</var>themes to generate a minimum of $2,100,000 in additional revenue for the fiscal year <br/>
<a id="pl.82.4"></a><var>82.4</var>for the general fund.<br/>
<a id="pl.82.5"></a><var>82.5</var><b>EFFECTIVE DATE.</b>This section is effective pursuant to the authority granted <br/>
<a id="pl.82.6"></a><var>82.6</var>under section 1, on the day following final enactment.<br/>
<br/>
<a id="bill.7.3.0"></a><a id="pl.82.7"></a><var>82.7</var>    Sec. 3. Minnesota Statutes 2011 Supplement, section 473.757, subdivision 11, is <br/>
<a id="pl.82.8"></a><var>82.8</var>amended to read:<br/>
<a id="pl.82.9"></a><var>82.9</var>    Subd. 11. <b>Uses of tax.</b> (a) Revenues received from the tax imposed under <br/>
<a id="pl.82.10"></a><var>82.10</var>subdivision 10 may be used:<br/>
<a id="pl.82.11"></a><var>82.11</var>    (1) to pay costs of collection;<br/>
<a id="pl.82.12"></a><var>82.12</var>    (2) to pay or reimburse or secure the payment of any principal of, premium, or <br/>
<a id="pl.82.13"></a><var>82.13</var>interest on bonds issued in accordance with Laws 2006, chapter 257, section 12;<br/>
<a id="pl.82.14"></a><var>82.14</var>    (3) to pay costs and make expenditures and grants described in this section, including <br/>
<a id="pl.82.15"></a><var>82.15</var>financing costs related to them;<br/>
<a id="pl.82.16"></a><var>82.16</var>    (4) to maintain reserves for the foregoing purposes deemed reasonable and <br/>
<a id="pl.82.17"></a><var>82.17</var>appropriate by the county;<br/>
<a id="pl.82.18"></a><var>82.18</var>    (5) to pay for operating costs of the ballpark authority other than the cost of <br/>
<a id="pl.82.19"></a><var>82.19</var>operating or maintaining the ballpark; and<br/>
<a id="pl.82.20"></a><var>82.20</var>    (6) to make expenditures and grants for youth activities and amateur sports and <br/>
<a id="pl.82.21"></a><var>82.21</var>extension of library hours as described in subdivision 2;<br/>
<a id="pl.82.22"></a><var>82.22</var>and for no other purpose.<br/>
<a id="pl.82.23"></a><var>82.23</var>    (b) Revenues from the tax designated for use under paragraph (a), clause (5), must <br/>
<a id="pl.82.24"></a><var>82.24</var>be deposited in the operating fund of the ballpark authority.<br/>
<a id="pl.82.25"></a><var>82.25</var>    (c) After completion of the ballpark and public infrastructure, the tax revenues not <br/>
<a id="pl.82.26"></a><var>82.26</var>required for current payments of the expenditures described in paragraph (a), clauses (1) to <br/>
<a id="pl.82.27"></a><var>82.27</var>(6), shall be used to (i) redeem or defease the bonds and (ii) prepay or establish a fund for <br/>
<a id="pl.82.28"></a><var>82.28</var>payment of future obligations under grants or other commitments for future expenditures <br/>
<a id="pl.82.29"></a><var>82.29</var>which are permitted by this section. Upon the redemption or defeasance of the bonds and <br/>
<a id="pl.82.30"></a><var>82.30</var>the establishment of reserves adequate to meet such future obligations, the taxes shall <br/>
<a id="pl.82.31"></a><var>82.31</var>terminate and shall not be reimposed. For purposes of this subdivision, "reserves adequate <br/>
<a id="pl.82.32"></a><var>82.32</var>to meet such future obligations" means a reserve that does not exceed the net present value <br/>
<a id="pl.82.33"></a><var>82.33</var>of the county's obligation to make grants under paragraph (a), clauses (5) and (6), and to <br/>
<a id="pl.82.34"></a><var>82.34</var>fund the reserve for capital improvements required under section 
         <statute_ref>473.759, subdivision 3</statute_ref>, <br/>
<a id="pl.83.1"></a><var>83.1</var>for the 30-year period beginning on the date of the original issuance of the bonds, less <br/>
<a id="pl.83.2"></a><var>83.2</var>those obligations that the county has already paid. Each fiscal year revenues available <br/>
<a id="pl.83.3"></a><var>83.3</var>for use under this paragraph must be accumulated and may not be expended under this <br/>
<a id="pl.83.4"></a><var>83.4</var>paragraph until 15 days after the close of the county's fiscal year, provided that the county <br/>
<a id="pl.83.5"></a><var>83.5</var>has not received a notice under paragraph (d).<br/>
<a id="pl.83.6"></a><var>83.6</var>    (d) Notwithstanding the authority to use revenues under paragraph (c), upon <br/>
<a id="pl.83.7"></a><var>83.7</var>notification by the commissioner of management and budget under section 16A.1524 for a <br/>
<a id="pl.83.8"></a><var>83.8</var>state fiscal year, the county must pay any revenues that would be available under paragraph <br/>
<a id="pl.83.9"></a><var>83.9</var>(c) to the commissioner for that state fiscal year as provided under section 16A.1524.<br/>
<a id="pl.83.10"></a><var>83.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.83.11"></a><var>83.11</var>without local approval by Hennepin County under Minnesota Statutes, section 645.023, <br/>
<a id="pl.83.12"></a><var>83.12</var>subdivision 1, paragraph (c).<br/>
<br/>
<a id="bill.7.4.0"></a><a id="pl.83.13"></a><var>83.13</var>    Sec. 4. <b>[473J.14] ADMISSIONS TAX.</b><br/>
<a id="pl.83.14"></a><var>83.14</var>    (a) Upon notification by the commissioner of management and budget under section <br/>
<a id="pl.83.15"></a><var>83.15</var>16A.1524, the commission shall by resolution impose and maintain a ten percent tax <br/>
<a id="pl.83.16"></a><var>83.16</var>on either or both of:<br/>
<a id="pl.83.17"></a><var>83.17</var>(1) the gross receipts received for the rental of box seats, suites, sky boxes, and <br/>
<a id="pl.83.18"></a><var>83.18</var>similar in the NFL stadium; or<br/>
<a id="pl.83.19"></a><var>83.19</var>(2) the granting, issuance, sale, or distribution, by any private or public person, <br/>
<a id="pl.83.20"></a><var>83.20</var>association, or corporation, of the privilege of admission to professional sporting events <br/>
<a id="pl.83.21"></a><var>83.21</var>at the NFL stadium.<br/>
<a id="pl.83.22"></a><var>83.22</var>(b) Each tax must be imposed in the years specified by the commissioner of <br/>
<a id="pl.83.23"></a><var>83.23</var>management and budget. The suites rental tax under paragraph (a), clause (1), applies to <br/>
<a id="pl.83.24"></a><var>83.24</var>the gross receipts, as defined under section 297A.61, received by the seller, as defined <br/>
<a id="pl.83.25"></a><var>83.25</var>in section 297A.61, and is a debt owed by the seller to the commission. The admission <br/>
<a id="pl.83.26"></a><var>83.26</var>tax under paragraph (a), clause (2), must be stated and charged separately from the sales <br/>
<a id="pl.83.27"></a><var>83.27</var>price so far as practicable and the grantor, seller, or distributor must collect the tax from <br/>
<a id="pl.83.28"></a><var>83.28</var>the person admitted and the tax is a debt from that person to the grantor, issuer, seller, or <br/>
<a id="pl.83.29"></a><var>83.29</var>distributor, and the tax required to be collected is a debt owed by the grantor, issuer, seller, <br/>
<a id="pl.83.30"></a><var>83.30</var>or distributor to the commission. Any tax imposed under this section is recoverable at <br/>
<a id="pl.83.31"></a><var>83.31</var>law by the commission from the grantor, issuer, seller, or distributor in the same manner <br/>
<a id="pl.83.32"></a><var>83.32</var>as other debts. Every person granting, issuing, selling, or distributing tickets for taxable <br/>
<a id="pl.83.33"></a><var>83.33</var>admissions or renting boxes, suites, or similar may be required, as provided in resolutions <br/>
<a id="pl.83.34"></a><var>83.34</var>of the commission, to secure a permit, to file returns, to deposit security for the payment <br/>
<a id="pl.83.35"></a><var>83.35</var>of the tax, and to pay the penalties for nonpayment and interest on late payments, as the <br/>
<a id="pl.84.1"></a><var>84.1</var>commission deems necessary or expedient to assure the prompt and uniform collection of <br/>
<a id="pl.84.2"></a><var>84.2</var>either or both of the taxes.<br/>
<a id="pl.84.3"></a><var>84.3</var>    (c) The commission shall remit the proceeds of any taxes imposed under this section <br/>
<a id="pl.84.4"></a><var>84.4</var>to the commissioner of management and budget for deposit in the state's general fund.<br/>
<a id="pl.84.5"></a><var>84.5</var>    (d) Notwithstanding any other provisions of this section, the imposition of an <br/>
<a id="pl.84.6"></a><var>84.6</var>admission tax upon a national superbowl football game conducted at the NFL stadium is <br/>
<a id="pl.84.7"></a><var>84.7</var>discretionary with the commission. <br/>
<br/>
<a id="bill.7.5.0"></a><a id="pl.84.8"></a><var>84.8</var>    Sec. 5. <b>[473J.145] MINNEAPOLIS; CONVENTION CENTER TAX </b><br/>
<a id="pl.84.9"></a><var>84.9</var><b>EXTENSION.</b><br/>
<a id="pl.84.10"></a><var>84.10</var>The taxes under Laws 1986, chapter 396, sections 4 and 5, may be extended by <br/>
<a id="pl.84.11"></a><var>84.11</var>order of the commissioner of management and budget beyond the 2047 sunset specified <br/>
<a id="pl.84.12"></a><var>84.12</var>under article 4, as an additional source of revenue for repayment of the bonds sold under <br/>
<a id="pl.84.13"></a><var>84.13</var>article 2. Any revenues collected from the extension of these taxes through 2048, 2049, <br/>
<a id="pl.84.14"></a><var>84.14</var>and 2050 are appropriated to the commissioner of management and budget for repayment <br/>
<a id="pl.84.15"></a><var>84.15</var>of the bonds sold by the state under article 2.<br/>
<a id="pl.84.16"></a><var>84.16</var><b>EFFECTIVE DATE.</b>This section is effective pursuant to the authority granted <br/>
<a id="pl.84.17"></a><var>84.17</var>under section 1, on the day following final enactment.<br/>