1.1A bill for an act1.2relating to stadiums; providing for a new National Football League stadium in 1.3Minnesota; establishing a Minnesota Stadium Authority; authorizing the sale 1.4and issuance of state appropriation bonds; abolishing the Metropolitan Sports 1.5Facilities Commission; providing for use of certain local tax revenue; providing 1.6for electronic pull-tab games, electronic linked bingo games, and sports-themed 1.7tipboard games; providing for the conditional imposition of certain taxes and 1.8collection of other revenues; modifying certain rates of tax on lawful gambling; 1.9appropriating money;amending Minnesota Statutes 2010, sections 3.971, 1.10subdivision 6; 3.9741, by adding a subdivision; 13.55, subdivision 1; 297E.01, 1.11subdivisions 7, 8, 9; 297E.02, subdivisions 1, 3, 6, 7, 10, 11, by adding a 1.12subdivision; 297E.13, subdivision 5; 349.12, subdivisions 3b, 3c, 5, 6a, 12a, 1.1318, 25, 25b, 25c, 25d, 29, 31, 32, 34, 35, by adding subdivisions; 349.13; 1.14349.151, subdivisions 4b, 4c, by adding subdivisions; 349.155, subdivisions 3, 4; 1.15349.161, subdivisions 1, 5; 349.162, subdivision 5; 349.163, subdivisions 1, 5, 6; 1.16349.1635, subdivisions 2, 3, by adding a subdivision; 349.165, subdivision 2; 1.17349.17, subdivisions 6, 7, 8, by adding a subdivision; 349.1711, subdivisions 1, 1.182; 349.1721; 349.18, subdivision 1; 349.19, subdivisions 2, 3, 5, 10; 349.211, 1.19subdivisions 1a, 2c; 352.01, subdivision 2a; 473.121, subdivision 5a; 473.164; 1.20473.565, subdivision 1; Minnesota Statutes 2011 Supplement, sections 10A.01, 1.21subdivision 35; 340A.404, subdivision 1; 473.757, subdivision 11; Laws 1986, 1.22chapter 396, sections 4, as amended; 5, as amended; proposing coding for new 1.23law in Minnesota Statutes, chapters 16A; 297A; 349A; proposing coding for new 1.24law as Minnesota Statutes, chapter 473J; repealing Minnesota Statutes 2010, 1.25sections 297E.02, subdivision 4; 349.15, subdivision 3; 349.19, subdivision 1.262a; 473.551; 473.552; 473.553, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 1.2713; 473.556, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 16, 17; 1.28473.561; 473.564, subdivisions 2, 3; 473.572; 473.581; 473.592, subdivision 1; 1.29473.595; 473.598; 473.599; 473.76.1.30BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:1.31ARTICLE 11.32MINNESOTA STADIUM AUTHORITY1.33    Section 1. Minnesota Statutes 2010, section 3.971, subdivision 6, is amended to read:2.1    Subd. 6. Financial audits. The legislative auditor shall audit the financial 2.2statements of the state of Minnesota required by section 
         16A.50 and, as resources permit, 2.3shall audit Minnesota State Colleges and Universities, the University of Minnesota, state 2.4agencies, departments, boards, commissions, courts, and other state organizations subject 2.5to audit by the legislative auditor, including the State Agricultural Society, Agricultural 2.6Utilization Research Institute, Enterprise Minnesota, Inc., Minnesota Historical 2.7Society, Labor Interpretive Center, Minnesota Partnership for Action Against Tobacco, 2.8Metropolitan Sports Facilities Commission, Minnesota Stadium Authority, Metropolitan 2.9Airports Commission, and Metropolitan Mosquito Control District. Financial audits 2.10must be conducted according to generally accepted government auditing standards. The 2.11legislative auditor shall see that all provisions of law respecting the appropriate and 2.12economic use of public funds are complied with and may, as part of a financial audit or 2.13separately, investigate allegations of noncompliance.2.14    Sec. 2. Minnesota Statutes 2010, section 3.9741, is amended by adding a subdivision 2.15to read:2.16    Subd. 4.Minnesota Stadium Authority.Upon the audit of the financial accounts 2.17and affairs of the Minnesota Stadium Authority, the authority is liable to the state for the 2.18total cost and expenses of the audit, including the salaries paid to the examiners while 2.19actually engaged in making the examination. The legislative auditor may bill the authority 2.20either monthly or at the completion of the audit. All collections received for the audits 2.21must be deposited in the general fund.2.22    Sec. 3. Minnesota Statutes 2011 Supplement, section 10A.01, subdivision 35, is 2.23amended to read:2.24    Subd. 35. Public official. "Public official" means any:2.25    (1) member of the legislature;2.26    (2) individual employed by the legislature as secretary of the senate, legislative 2.27auditor, chief clerk of the house of representatives, revisor of statutes, or researcher, 2.28legislative analyst, or attorney in the Office of Senate Counsel and Research or House 2.29Research;2.30    (3) constitutional officer in the executive branch and the officer's chief administrative 2.31deputy;2.32    (4) solicitor general or deputy, assistant, or special assistant attorney general;3.1    (5) commissioner, deputy commissioner, or assistant commissioner of any state 3.2department or agency as listed in section 
         15.01 or 
         15.06, or the state chief information 3.3officer;3.4    (6) member, chief administrative officer, or deputy chief administrative officer of a 3.5state board or commission that has either the power to adopt, amend, or repeal rules under 3.6chapter 14, or the power to adjudicate contested cases or appeals under chapter 14;3.7    (7) individual employed in the executive branch who is authorized to adopt, amend, 3.8or repeal rules under chapter 14 or adjudicate contested cases under chapter 14;3.9    (8) executive director of the State Board of Investment;3.10    (9) deputy of any official listed in clauses (7) and (8);3.11    (10) judge of the Workers' Compensation Court of Appeals;3.12    (11) administrative law judge or compensation judge in the State Office of 3.13Administrative Hearings or unemployment law judge in the Department of Employment 3.14and Economic Development;3.15    (12) member, regional administrator, division director, general counsel, or operations 3.16manager of the Metropolitan Council;3.17    (13) member or chief administrator of a metropolitan agency;3.18    (14) director of the Division of Alcohol and Gambling Enforcement in the 3.19Department of Public Safety;3.20    (15) member or executive director of the Higher Education Facilities Authority;3.21    (16) member of the board of directors or president of Enterprise Minnesota, Inc.;3.22    (17) member of the board of directors or executive director of the Minnesota State 3.23High School League;3.24    (18) member of the Minnesota Ballpark Authority established in section 
         473.755;3.25    (19) citizen member of the Legislative-Citizen Commission on Minnesota Resources;3.26    (20) manager of a watershed district, or member of a watershed management 3.27organization as defined under section 
         103B.205, subdivision 13;3.28    (21) supervisor of a soil and water conservation district;3.29(22) director of Explore Minnesota Tourism;3.30    (23) citizen member of the Lessard-Sams Outdoor Heritage Council established in 3.31section 97A.056; or3.32(24) a citizen member of the Clean Water Council established in section 
         114D.30.; or3.33(25) member or chief executive of the Minnesota Stadium Authority established 3.34in section 473J.07.4.1    Sec. 4. Minnesota Statutes 2011 Supplement, section 340A.404, subdivision 1, is 4.2amended to read:4.3    Subdivision 1. Cities. (a) A city may issue an on-sale intoxicating liquor license to 4.4the following establishments located within its jurisdiction:4.5(1) hotels;4.6(2) restaurants;4.7(3) bowling centers;4.8(4) clubs or congressionally chartered veterans organizations with the approval of 4.9the commissioner, provided that the organization has been in existence for at least three 4.10years and liquor sales will only be to members and bona fide guests, except that a club 4.11may permit the general public to participate in a wine tasting conducted at the club under 4.12section 
         340A.419;4.13(5) sports facilities, restaurants, clubs, or bars located on land owned or leased by 4.14the Minnesota Stadium Authority;4.15(5) (6) sports facilities located on land owned by the Metropolitan Sports 4.16Commission; and4.17(6) (7) exclusive liquor stores.4.18(b) A city may issue an on-sale intoxicating liquor license, an on-sale wine license, 4.19or an on-sale malt liquor license to a theater within the city, notwithstanding any law, local 4.20ordinance, or charter provision. A license issued under this paragraph authorizes sales on 4.21all days of the week to persons attending events at the theater.4.22(c) A city may issue an on-sale intoxicating liquor license, an on-sale wine license, 4.23or an on-sale malt liquor license to a convention center within the city, notwithstanding 4.24any law, local ordinance, or charter provision. A license issued under this paragraph 4.25authorizes sales on all days of the week to persons attending events at the convention 4.26center. This paragraph does not apply to convention centers located in the seven-county 4.27metropolitan area.4.28(d) A city may issue an on-sale wine license and an on-sale malt liquor license to 4.29a person who is the owner of a summer collegiate league baseball team, or to a person 4.30holding a concessions or management contract with the owner, for beverage sales at a 4.31ballpark or stadium located within the city for the purposes of summer collegiate league 4.32baseball games at the ballpark or stadium, notwithstanding any law, local ordinance, or 4.33charter provision. A license issued under this paragraph authorizes sales on all days of the 4.34week to persons attending baseball games at the ballpark or stadium.4.35    Sec. 5. Minnesota Statutes 2010, section 352.01, subdivision 2a, is amended to read:5.1    Subd. 2a. Included employees. (a) "State employee" includes:5.2    (1) employees of the Minnesota Historical Society;5.3    (2) employees of the State Horticultural Society;5.4    (3) employees of the Minnesota Crop Improvement Association;5.5    (4) employees of the adjutant general whose salaries are paid from federal funds and 5.6who are not covered by any federal civilian employees retirement system;5.7    (5) employees of the Minnesota State Colleges and Universities who are employed 5.8under the university or college activities program;5.9    (6) currently contributing employees covered by the system who are temporarily 5.10employed by the legislature during a legislative session or any currently contributing 5.11employee employed for any special service as defined in subdivision 2b, clause (8);5.12    (7) employees of the legislature who are appointed without a limit on the duration 5.13of their employment and persons employed or designated by the legislature or by a 5.14legislative committee or commission or other competent authority to conduct a special 5.15inquiry, investigation, examination, or installation;5.16    (8) trainees who are employed on a full-time established training program 5.17performing the duties of the classified position for which they will be eligible to receive 5.18immediate appointment at the completion of the training period;5.19    (9) employees of the Minnesota Safety Council;5.20    (10) any employees who are on authorized leave of absence from the Transit 5.21Operating Division of the former Metropolitan Transit Commission and who are employed 5.22by the labor organization which is the exclusive bargaining agent representing employees 5.23of the Transit Operating Division;5.24    (11) employees of the Metropolitan Council, Metropolitan Parks and Open Space 5.25Commission, Metropolitan Sports Facilities Commission, or Metropolitan Mosquito 5.26Control Commission unless excluded under subdivision 2b or are covered by another 5.27public pension fund or plan under section 
         473.415, subdivision 3;5.28    (12) judges of the Tax Court;5.29    (13) personnel who were employed on June 30, 1992, by the University of 5.30Minnesota in the management, operation, or maintenance of its heating plant facilities, 5.31whose employment transfers to an employer assuming operation of the heating plant 5.32facilities, so long as the person is employed at the University of Minnesota heating plant 5.33by that employer or by its successor organization;5.34    (14) personnel who are employed as seasonal employees in the classified or 5.35unclassified service;6.1    (15) persons who are employed by the Department of Commerce as a peace officer 6.2in the Insurance Fraud Prevention Division under section 
         45.0135 who have attained the 6.3mandatory retirement age specified in section 
         43A.34, subdivision 4;6.4    (16) employees of the University of Minnesota unless excluded under subdivision 6.52b, clause (3);6.6    (17) employees of the Middle Management Association whose employment began 6.7after July 1, 2007, and to whom section 
         352.029 does not apply; and6.8    (18) employees of the Minnesota Government Engineers Council to whom section 6.9352.029
          does not apply.; and6.10(19) employees of the Minnesota Stadium Authority.6.11    (b) Employees specified in paragraph (a), clause (13), are included employees under 6.12paragraph (a) if employer and employee contributions are made in a timely manner in the 6.13amounts required by section 
         352.04. Employee contributions must be deducted from 6.14salary. Employer contributions are the sole obligation of the employer assuming operation 6.15of the University of Minnesota heating plant facilities or any successor organizations to 6.16that employer.6.17    Sec. 6. [473J.01] PURPOSE.6.18The purpose of this chapter is to provide for the construction, financing, and 6.19long-term use of a stadium and related stadium infrastructure as a venue for professional 6.20football and a broad range of other civic, community, athletic, educational, cultural, 6.21and commercial activities. The legislature finds and declares that the expenditure of 6.22public money for this purpose is necessary and serves a public purpose, and that property 6.23acquired by the Minnesota Stadium Authority for the construction of the stadium and 6.24related stadium infrastructure is acquired for a public use or public purpose under chapter 6.25117. The legislature further finds and declares that any provision in a lease or use 6.26agreement with a professional football team that requires the team to play all of its home 6.27games in a publicly funded stadium for the duration of the lease or use agreement, with the 6.28occasional exception of a game played elsewhere as set forth in such agreement, serves 6.29a unique public purpose for which the remedies of specific performance and injunctive 6.30relief are essential to its enforcement. The legislature further finds and declares that 6.31government assistance to facilitate the presence of professional football provides to the 6.32state of Minnesota and its citizens highly valued intangible benefits that are virtually 6.33impossible to quantify and, therefore, not recoverable even if the government receives 6.34monetary damages in the event of a team's breach of contract. Minnesota courts are, 7.1therefore, charged with protecting those benefits through the use of specific performance 7.2and injunctive relief as provided in this chapter and in the lease and use agreements.7.3    Sec. 7. [473J.03] DEFINITIONS.7.4    Subdivision 1.Application. For the purposes of this chapter, the terms defined in 7.5this section have the meanings given them, except as otherwise expressly provided or 7.6indicated by the context.7.7    Subd. 2.Annual adjustment factor."Annual adjustment factor" means the annual 7.8adjustment factor under section 297A.994, subdivision 4, paragraph (b).7.9    Subd. 3.Authority. "Authority" means the Minnesota Stadium Authority 7.10established under section 473J.07.7.11    Subd. 4.City. "City" means the city of Minneapolis.7.12    Subd. 5.NFL.The "NFL" means the National Football League.7.13    Subd. 6.NFL team. "NFL team" means the owner and operator of the NFL 7.14professional football team known, as of the effective date of this chapter, as the Minnesota 7.15Vikings or any team owned and operated by someone who purchases or otherwise takes 7.16ownership or control of or reconstitutes the NFL team known as the Minnesota Vikings.7.17    Subd. 7.Stadium."Stadium" means the stadium suitable for professional football 7.18to be designed, constructed, and financed under this chapter. A stadium must have a roof 7.19that covers the stadium, as set forth in section 473J.11, subdivision 3.7.20    Subd. 8.Stadium costs. "Stadium costs" means the costs of acquiring land, the 7.21costs of stadium infrastructure, and of designing, constructing, equipping, and financing a 7.22stadium suitable for professional football.7.23    Subd. 9.Stadium infrastructure."Stadium infrastructure" means plazas, parking 7.24structures, rights of way, connectors, skyways and tunnels, and other such property, 7.25facilities, and improvements, owned by the authority or determined by the authority to 7.26facilitate the use and development of the stadium.7.27    Subd. 10.Stadium site. "Stadium site" means all or portions of the current site of 7.28the existing football stadium and adjacent areas, bounded generally by Park and Eleventh 7.29Avenues and Third and Sixth Streets in the city of Minneapolis, the definitive boundaries 7.30of which shall be determined by the authority and agreed to by the NFL team.7.31    Sec. 8. [473J.07] MINNESOTA STADIUM AUTHORITY.7.32    Subdivision 1.Established.The Minnesota Stadium Authority is established as a 7.33public body, corporate and politic, and political subdivision of the state. The authority is 7.34not a joint powers entity or an agency or instrumentality of the city.8.1    Subd. 2.Membership.(a) The authority shall consist of five members. 8.2(b) The chair and two members shall be appointed by the governor. One member 8.3appointed by the governor shall serve until December 31 of the third year following 8.4appointment and one member shall serve until December 31 of the fourth year following 8.5appointment. Thereafter, members appointed by the governor shall serve four-year terms, 8.6beginning January 1. Each member serves until a successor is appointed and takes office. 8.7The chair serves at the pleasure of the governor. Appointments under this paragraph are 8.8subject to the advice and consent of the senate. Senate confirmation shall be as provided 8.9by section 15.066.8.10(c) The mayor of the city shall appoint two members to the authority. One member 8.11appointed by the mayor of the city shall serve until December 31 of the third year 8.12following appointment and one member shall serve until December 31 of the fourth year 8.13following appointment. Thereafter, members appointed under this paragraph shall serve 8.14four-year terms beginning January 1. Each member serves until a successor is appointed 8.15and takes office. Members appointed under this paragraph may reside within the city and 8.16may be appointed officials of a political subdivision.8.17(d) The initial members of the authority must be appointed not later than 30 days 8.18after the date of enactment of this chapter.8.19    Subd. 3.Compensation.The authority may compensate its members, other than the 8.20chair, as provided in section 15.0575. The chair shall receive, unless otherwise provided 8.21by other law, a salary in an amount fixed by the authority, and shall be reimbursed for 8.22reasonable expenses to the same extent as a member.8.23    Subd. 4.Chair.The chair presides at all meetings of the authority, if present, and 8.24performs all other assigned duties and functions. The authority may appoint from among 8.25its members a vice-chair to act for the chair during the temporary absence or disability of 8.26the chair, and any other officers the authority determines are necessary or convenient.8.27    Subd. 5.Removal. A member, other than the chair, may be removed by the 8.28appointing authority only for misfeasance, malfeasance, or nonfeasance in office, upon 8.29written charges, and after an opportunity to be heard in defense of the charges.8.30    Subd. 6.Bylaws.The authority shall adopt bylaws to establish rules of procedure, 8.31the powers and duties of its officers, and other matters relating to the governance of the 8.32authority and the exercise of its powers. Except as provided in this section, the bylaws 8.33adopted under this subdivision must be similar in form and substance to bylaws adopted 8.34by the Minnesota Ballpark Authority pursuant to section 473.755.9.1    Subd. 7.Audit.The legislative auditor shall audit the books and accounts of the 9.2authority once each year or as often as the legislative auditor's funds and personnel permit. 9.3The authority shall pay the total cost of the audit pursuant to section 3.9741.9.4    Subd. 8.Executive director; employees.The authority may appoint an executive 9.5director to serve as the chief executive officer of the authority. The executive director 9.6serves at the pleasure of the authority and receives compensation as determined by the 9.7authority. The executive director may be responsible for the operation, management, and 9.8promotion of activities of the authority, as prescribed by the authority. The executive 9.9director has the powers necessarily incident to the performance of duties required and 9.10powers granted by the authority, but does not have authority to incur liability or make 9.11expenditures on behalf of the authority without general or specific directions by the 9.12authority, as shown by the bylaws or minutes of a meeting of the authority. The executive 9.13director is responsible for hiring, supervision, and dismissal of all other employees of 9.14the authority.9.15    Subd. 9.Web site.The authority shall establish a Web site for purposes of providing 9.16information to the public concerning all actions taken by the authority. At a minimum, the 9.17Web site must contain a current version of the authority's bylaws, notices of upcoming 9.18meetings, minutes of the authority's meetings, and contact telephone, electronic mail, and 9.19facsimile numbers for public comments.9.20    Subd. 10.Quorum; approvals.Any three members shall constitute a quorum for 9.21the conduct of business and action may be taken upon the vote of a majority of members 9.22present at a meeting duly called and held. During the design and construction stages of the 9.23stadium, a four-fifths vote of the authority is required for authority decisions related to 9.24zoning, land use, exterior design of the stadium, related parking, the plaza area, and the 9.25selection of the authority's lead representative during design and construction.9.26    Sec. 9. [473J.08] LOCATION.9.27The stadium to be constructed under this chapter shall be located at the stadium 9.28site in the city of Minneapolis. 9.29    Sec. 10. [473J.09] POWERS, DUTIES OF THE AUTHORITY.9.30    Subdivision 1.Actions. The authority may sue and be sued. The authority is a public 9.31body and the stadium and stadium infrastructure are public improvements within the 9.32meaning of chapter 562. The authority is a municipality within the meaning of chapter 466.9.33    Subd. 2.Acquisition of property. The authority may acquire from any public or 9.34private entity by lease, purchase, gift, or devise all necessary right, title, and interest in 10.1and to real property, air rights, and personal property deemed necessary to the purposes 10.2contemplated by this chapter. The authority may acquire, by the exercise of condemnation 10.3powers under chapter 117, land, other real property, air rights, personal property, and other 10.4right, title, and interest in property, within the stadium site and stadium infrastructure.10.5    Subd. 3.Disposition of property. The authority may sell, lease, or otherwise 10.6dispose of any real or personal property acquired by the authority that is no longer required 10.7for accomplishment of the authority's purposes. The property may be sold in accordance 10.8with the procedures provided by section 469.065, except subdivisions 6 and 7, to the 10.9extent the authority deems it to be practical and consistent with this chapter. Title to the 10.10stadium must not be transferred or sold by the authority prior to the effective date of 10.11enactment of any legislation approving such transfer or sale.10.12    Subd. 4.Data practices; open meetings. Except as otherwise provided in this 10.13chapter, the authority is subject to chapters 13 and 13D.10.14    Subd. 5.Facility operation.The authority may develop, construct, equip, improve, 10.15own, operate, manage, maintain, finance, and control the stadium, stadium infrastructure, 10.16and related facilities constructed or acquired under this chapter, or may delegate such 10.17duties through an agreement, subject to the rights and obligations transferred to and 10.18assumed by the authority, the NFL team, other user, third-party manager, or program 10.19manager, under the terms of a lease, use agreement, or development agreement.10.20    Subd. 6.Employees; contracts for services.The authority may employ persons 10.21and contract for services necessary to carry out its functions, including the utilization of 10.22employees and consultants retained by other governmental entities. The authority shall 10.23enter into an agreement with the city regarding traffic control for the stadium.10.24    Subd. 7.Gifts, grants, loans.The authority may accept monetary contributions, 10.25property, services, and grants or loans of money or other property from the United States, 10.26the state, any subdivision of the state, any agency of those entities, or any person for any 10.27of its purposes, and may enter into any agreement required in connection with the gifts, 10.28grants, or loans. The authority shall hold, use, and dispose of the money, property, or 10.29services according to the terms of the monetary contributions, grant, loan, or agreement.10.30    Subd. 8.Use agreements.The authority may lease, license, or enter into use 10.31agreements and may fix, alter, charge, and collect rents, fees, and charges for the use, 10.32occupation, and availability of part or all of any premises, property, or facilities under 10.33its ownership, operation, or control for purposes that will provide athletic, educational, 10.34cultural, commercial, or other entertainment, instruction, or activity for the citizens of 10.35Minnesota and visitors. The use agreements may provide that the other contracting party 10.36has exclusive use of the premises at the times agreed upon, as well as the right to retain 11.1some or all revenues from ticket sales, suite licenses, concessions, advertising, naming 11.2rights, NFL team designated broadcast/media, club seats, signage, and other revenues 11.3derived from the stadium. The lease or use agreement with an NFL team must provide for 11.4the payment by the NFL team of an agreed-upon portion of operating and maintenance 11.5costs and expenses and provide other terms in which the authority and NFL team agree. In 11.6no case may a lease or use agreement permit smoking in the stadium.11.7    Subd. 9.Research.The authority may conduct research studies and programs; 11.8collect and analyze data; prepare reports, maps, charts, and tables; and conduct all 11.9necessary hearings and investigations in connection with its functions.11.10    Subd. 10.Insurance.The authority may require any employee to obtain and file 11.11with the authority an individual bond or fidelity insurance policy. The authority may 11.12procure insurance in the amounts the authority considers necessary against liability of the 11.13authority or its officers and employees for personal injury or death and property damage or 11.14destruction, consistent with chapter 466, and against risks of damage to or destruction of 11.15any of its facilities, equipment, or other property.11.16    Subd. 11.Exemption from Metropolitan Council review; Business Subsidy Act.11.17The acquisition and betterment of a stadium and stadium infrastructure by the authority 11.18must be conducted pursuant to this chapter and are not subject to sections 473.165 and 11.19473.173. Section 116J.994 does not apply to any transactions of the authority or other 11.20governmental entity related to the stadium or stadium infrastructure or to any tenant or 11.21other users of the stadium or stadium infrastructure.11.22    Subd. 12.Incidental powers.In addition to the powers expressly granted in this 11.23chapter, the authority has all powers necessary or incidental thereto.11.24    Subd. 13.Transfers to the authority.In addition to any other payments required 11.25under this act, for operating years 2016 to 2020, the NFL team shall annually transfer to 11.26the authority amounts equal to the city of Minneapolis share of operating costs and capital 11.27reserves. These amounts shall be repaid to the NFL team by the state on behalf of the city 11.28of Minneapolis through a repayment schedule to be specified in law, and agreed to in all 11.29subsequent agreements between the city and the NFL team.11.30    Sec. 11. [473J.11] STADIUM DESIGN AND CONSTRUCTION.11.31    Subdivision 1.Contracts.(a) The design, development, and construction of the 11.32stadium shall be a collaborative process between the authority and the NFL team. The 11.33authority and the NFL team shall establish a process to reach consensus on key elements 11.34of the stadium program and design, development, and construction.11.35(b) Unless the authority and the NFL team agree otherwise:12.1(1) the authority shall create a stadium design and construction group, including 12.2representatives of the authority and the NFL team, to manage the design of the stadium 12.3and oversee construction;12.4(2) this group shall engage an owner's representative to act on behalf of the group. 12.5The cost of the owner's representative shall be a stadium cost; and12.6(3) the authority and the NFL team shall enter into a development administration 12.7agreement providing for rights and responsibilities of the authority and the NFL team, the 12.8design and construction group, and the owner's representative for design and construction 12.9of the stadium, including but not limited to establishment of minimum design standards. 12.10This development administration agreement shall provide for binding arbitration in 12.11the event that the authority and the NFL team are unable to agree on minimum design 12.12standards or other material aspects of the design.12.13(c) The authority may enter into an agreement with the NFL team and any other 12.14entity relating to the design, construction, financing, operation, maintenance, and use of 12.15the stadium and related facilities and stadium infrastructure. The authority may contract 12.16for materials, supplies, and equipment in accordance with section 471.345, except that 12.17the authority may employ or contract with persons, firms, or corporations to perform one 12.18or more or all of the functions of architect, engineer, construction manager, or program 12.19manager with respect to all or any part of the design, construction, financing, operation, 12.20maintenance, and use of the stadium and stadium infrastructure under the traditional 12.21separate design and build, integrated design-build, construction manager at risk, or 12.22public/private partnership (P3) structures, or a combination thereof.12.23(d) The authority and the NFL team shall prepare a request for proposals for one or 12.24more of the functions described in paragraph (c). The request must be published in the 12.25State Register and shall include, at a minimum, such requirements that are agreed to by 12.26the authority and the NFL team. The authority and the NFL team may prequalify offerors 12.27by issuing a request for qualifications, in advance of the request for proposals, and select a 12.28short list of responsible offerors prior to discussions and evaluations.12.29(e) As provided in the request for proposals, the authority, and the NFL team, may 12.30conduct discussions and negotiations with responsible offerors in order to determine 12.31which proposal is most advantageous to the authority and the NFL team and to negotiate 12.32the terms of an agreement. In conducting discussions, there shall be no disclosure of any 12.33information derived from proposals submitted by competing offerors and the content of all 12.34proposals is nonpublic data under chapter 13 until such time as a notice to award a contract 12.35is given by the authority. The agreement shall be subject to the approval of the NFL team.13.1(f) Prior to the time the authority enters into a construction contract with a 13.2construction manager or program manager certifying a maximum price and a completion 13.3date as provided in paragraph (h), at the request of the NFL team, the authority may 13.4authorize, such authorization not to be unreasonably withheld or delayed, the NFL team 13.5to provide for management of the construction of the stadium and related stadium 13.6infrastructure, in which event the NFL team must assume the role and responsibilities 13.7of the authority for completion of construction in a manner consistent with the agreed 13.8minimum design standards and design documents, subject to the terms of this act, 13.9including responsibility for cost overruns.13.10(g) The construction manager or program manager may enter into contracts with 13.11contractors for labor, materials, supplies, and equipment for the construction of the 13.12stadium and related stadium infrastructure through the process of public bidding, except 13.13that the construction manager or program manager may, with the consent of the authority 13.14or the NFL team if the NFL team has assumed responsibility for construction:13.15(1) narrow the listing of eligible bidders to those which the construction manager 13.16or program manager determines to possess sufficient expertise to perform the intended 13.17functions;13.18(2) award contracts to the contractors that the construction manager or program 13.19manager determines provide the best value under a request for proposals as described in 13.20section 16C.28, subdivision 1, paragraphs (a), clause (2), and (c), which are not required 13.21to be the lowest responsible bidder; and 13.22(3) for work the construction manager or program manager determines to be critical 13.23to the completion schedule, award contracts on the basis of competitive proposals, or 13.24perform work with its own forces without soliciting competitive bids if the construction 13.25manager or program manager provides evidence of competitive pricing. 13.26(h) The authority and the NFL team shall require that the construction manager or 13.27program manager certify, before the contract is signed, a fixed and stipulated construction 13.28price and completion date to the authority and post a performance bond in an amount 13.29at least equal to 100 percent of the certified price or such other security satisfactory to 13.30the authority, to cover any costs which may be incurred in excess of the certified price 13.31including, but not limited to, costs incurred by the authority or loss of revenues resulting 13.32from incomplete construction on the completion date. The authority may secure surety 13.33bonds as provided in section 574.26, securing payment of just claims in connection with 13.34all public work undertaken by the authority. Persons entitled to the protection of the 13.35bonds may enforce them as provided in sections 574.28 to 574.32 and are not entitled to a 13.36lien on any property of the authority under the provisions of sections 514.01 to 514.16. 14.1The construction of the stadium is a project as that term is defined in section 177.42, 14.2subdivision 2, and is subject to the prevailing wage law under sections 177.41 to 177.43.14.3    Subd. 2.Changes.Unless otherwise agreed to by the authority and the NFL team, 14.4if either party requests an agreed upon change in minimum design standards, and this 14.5change is responsible for requiring the project to exceed the stated budget, the requesting 14.6party is liable for any cost overruns or associated liabilities.14.7    Subd. 3.Stadium design.The stadium and stadium infrastructure shall be designed 14.8and constructed incorporating the following general program and design elements:14.9(1) Unless otherwise agreed to by the authority and the NFL team, the stadium 14.10shall comprise approximately 1,500,000 square feet with approximately 65,000 seats, 14.11expandable to 72,000, shall meet or exceed NFL program requirements, and include 14.12approximately 150 suites and approximately 7,500 club seats or other such components as 14.13agreed to by the authority and the NFL team;14.14(2) space for NFL team-related exhibitions and sales, which shall include the 14.15following: NFL team museum and Hall of Fame, retail merchandise and gift shop retail 14.16venues, and themed concessions and restaurants;14.17(3) year-round space for the NFL team administrative operations, sales, and 14.18marketing, including a ticket office, team meeting space, locker, and training rooms;14.19(4) space for administrative offices of the authority;14.20(5) 2,000 parking spaces within one block of the stadium, connected by skyway or 14.21tunnel to the stadium, and 500 parking spaces within two blocks of the stadium, with a 14.22dedicated walkway on game days;14.23(6) elements sufficient to provide community and civic uses as determined by the 14.24authority; and14.25(7) a roof that is fixed or retractable, provided that if the roof is retractable, it is 14.26accomplished without any increase to the funding provided by the state or the city.14.27    Subd. 4.Cost overruns, savings.The authority may accept financial obligations 14.28relating to cost overruns associated with acquisition of the stadium site, stadium 14.29infrastructure, and stadium design, development, and construction, provided that the 14.30authority shall not accept responsibility for cost overruns and shall not be responsible for 14.31cost overruns if the authority has authorized the NFL team to provide for management 14.32of construction of the stadium under section 473J.11, subdivision 1. Cost savings or 14.33additional funds obtained by the authority or the NFL team for the stadium or stadium 14.34infrastructure may be used first to fund additional stadium or stadium infrastructure, as 14.35agreed to by the authority and the NFL team, if any, and then to fund capital reserves.15.1    Sec. 12. [473J.112] COMMEMORATIVE BRICKS.15.2The authority shall sell commemorative bricks to be displayed at a prominent 15.3location in the new stadium, for an amount to be determined by the authority. The 15.4authority shall work with the commissioner to ensure that purchase of a brick is a tax 15.5deductible donation on the part of the donating person or organization. Funds raised 15.6through this section shall be appropriated to the commissioner of management and budget 15.7for a grant to the Minnesota Stadium Authority.15.8EFFECTIVE DATE.This section is effective the day following final enactment.15.9    Sec. 13. [473J.12] EMPLOYMENT.15.10    Subdivision 1.Hiring and recruitment.In the design, development, construction, 15.11management, operation, maintenance and capital repair, replacement and improvement of 15.12the stadium and stadium infrastructure, the authority shall make every effort to employ, 15.13and cause the NFL team, the construction manager and other subcontractors, vendors, and 15.14concessionaires to employ women and members of minority communities when hiring. 15.15Further, goals for construction contracts to be awarded to women- and minority-owned 15.16businesses will be in a percentage at least equal to the minimum used for city of 15.17Minneapolis development projects, and the other construction workforce will establish 15.18workforce utilization goals at least equal to current city goals and include workers from 15.19city zip codes that have high rates of poverty and unemployment.15.20    Subd. 2.Other required agreements.The NFL team or the authority shall give 15.21food, beverage, retail, and concession workers presently employed by the NFL team or 15.22the Metropolitan Sports Facilities Commission or its vendors at the existing football 15.23stadium the opportunity to continue their employment in comparable positions at the new 15.24stadium. Workers who are presently represented under a collective bargaining agreement 15.25may seek to continue such representation in the facility and designate such, or another 15.26collective bargaining unit, as their representative.15.27    Sec. 14. [473J.13] STADIUM OPERATIONS; CAPITAL IMPROVEMENTS.15.28    Subdivision 1.Stadium operation.The stadium shall be operated in a first-class 15.29manner, similar to and consistent with other comparable NFL stadiums, such as the 15.30stadium currently known as Lucas Oil Field. The authority and the team will mutually 15.31agree on a third-party management company or individual to manage the stadium and on 15.32certain major vendors to the stadium. The authority, with the approval of the NFL team, 15.33may enter into an agreement with a program manager for management of the stadium, for 15.34a maximum of 30 years.16.1    Subd. 2.Operating expenses.(a) The authority must pay or cause to be paid 16.2all operating expenses of the stadium. The authority must require in the lease or use 16.3agreement with the NFL team that the NFL team pay the authority, beginning January 1, 16.42016, or other date as mutually agreed upon by the parties, toward operating costs of the 16.5stadium, $8,500,000 each year, increased by a three percent annual inflation rate.16.6(b) Beginning January 1, 2016, or other date as mutually agreed upon by the 16.7parties, and continuing through 2020, the NFL team shall pay the authority operating 16.8expenses, $6,000,000 each year, increased by an annual adjustment factor. The payment 16.9of $6,000,000 per year beginning in 2016 is a payment by the team, which shall be repaid 16.10to the team by the state, using funds as provided under section 297A.994, subdivision 4, 16.11clause (4). After 2020, the state shall assume this payment, using funds generated in 16.12accordance with the city of Minneapolis as specified under section 287A.994.16.13(c) The authority may establish an operating reserve to cover operating expense 16.14shortfalls and may accept funds from any source for deposit in the operating reserve. The 16.15establishment or funding of an authority operating reserve must not decrease the amounts 16.16required to be paid to the authority toward operating costs under this subdivision unless 16.17agreed to by the authority.16.18(d) The authority will be responsible for operating cost overruns.16.19(e) After the joint selection of the third-party manager or program manager, the 16.20authority may agree with a program manager or other third-party manager of the stadium 16.21on a fixed cost operating, management, or employment agreement with operating 16.22cost protections under which the program manager or third-party manager assumes 16.23responsibility for stadium operating costs and shortfalls. The agreement with the manager 16.24must require the manager to prepare an initial and ongoing operating plan and operating 16.25budgets for approval by the authority in consultation with the NFL team. The manager 16.26must agree to operate the stadium in accordance with the approved operating plan and 16.27operating budget.16.28    Subd. 3.Public access.The authority will work to maximize access for public and 16.29amateur sports, community, and civic events, and other public events in type and on terms 16.30consistent with those currently held at the existing football stadium, as defined in section 16.31473.551, subdivision 9. The authority may provide that these events have exclusive use 16.32of the premises at agreed-upon times subject to the scheduling rights of the NFL team 16.33under the lease or use agreement.16.34    Subd. 4.Capital improvements.(a) The authority shall establish a capital 16.35reserve fund. The authority shall be responsible for making, or for causing others to 16.36make, all capital repairs, replacements, and improvements for the stadium and stadium 17.1infrastructure. The authority shall maintain, or cause others to maintain, the stadium and 17.2stadium infrastructure in a safe, clean, attractive, and first-class manner so as to cause 17.3them to remain in a condition comparable to that of other comparable NFL facilities of 17.4similar design and age. The authority shall make, or cause others to make, all necessary 17.5or appropriate repairs, renewals, and replacements, whether structural or nonstructural, 17.6interior or exterior, ordinary or extraordinary, foreseen or unforeseen, in a prompt and 17.7timely manner. In addition, the authority, with approval of the NFL team, may enter into 17.8an agreement with a program manager to perform some or all of the responsibilities of the 17.9authority in this subdivision and to assume and accept financial liability for the cost of 17.10performing the responsibilities.17.11(b) The NFL team must contribute $1,500,000 each year, beginning in 2016 or as 17.12otherwise determined for the term of the lease or use agreement to the operating reserve 17.13fund, increased by a three percent annual inflation rate.17.14(c) The state shall contribute $1,500,000 each year, beginning in 2016 or as otherwise 17.15determined for the term of the lease to the operating reserve fund. The contributions of the 17.16state are subject to increase by an annual adjustment factor. The contribution under this 17.17paragraph shall be assumed by the team from 2016 through 2020, and repaid to the team 17.18by the state using funds in accordance with section 297A.994, subdivision 4, clause (4).17.19(d) The authority with input from the NFL team shall develop short-term and 17.20long-term capital funding plans and shall use those plans to guide the future capital needs 17.21of the stadium and stadium infrastructure. The authority shall make the final determination 17.22with respect to funding capital needs. Any capital improvement proposed by the NFL 17.23team intended primarily to provide revenue enhancements to the NFL team shall be paid 17.24for by the NFL team, unless otherwise agreed to with the authority.17.25    Subd. 5.Game-day payments.In addition to operating expense contributions 17.26of the NFL team under subdivision 2, the NFL team shall pay all NFL game day, NFL 17.27team-owned major league soccer, as provided in section 473J.15, subdivision 15, and 17.28other NFL team-sponsored event expenses within the stadium and stadium plaza areas.17.29    Subd. 6.Cooperation with financing.The authority will cooperate with the 17.30NFL team to facilitate the financing of the NFL team's contribution. Such agreement to 17.31cooperate shall not require the authority to incur any additional costs or provide conduit 17.32financing. The lease, license, and other transaction documents shall include provisions 17.33customarily required by lenders in stadium financings.17.34    Sec. 15. [473J.15] CRITERIA AND CONDITIONS.18.1    Subdivision 1.Binding and enforceable.In developing the stadium and entering 18.2into related contracts, the authority must follow and enforce the criteria and conditions in 18.3this section, provided that a determination by the authority that those criteria or conditions 18.4have been met under any agreement or otherwise shall be conclusive.18.5    Subd. 2.NFL team/private contribution; timing of expenditures.(a) The NFL 18.6team/private contribution, including stadium builder license proceeds, for stadium costs 18.7must be made in cash in the amount of at least $427,000,000.18.8(b) Prior to the initial deposit of funds under this section, the team must provide 18.9security or other credit worthiness in the amount of $50,000,000, subject to the satisfaction 18.10of the authority. Prior to the first issuance of bonds under section 16A.965, the first portion 18.11of the NFL team/private contribution in the amount of $50,000,000 must be deposited as 18.12costs are incurred to the construction fund to pay for the initial stadium costs.18.13(c) After the first $50,000,000 of stadium costs have been paid from the initial 18.14NFL team/private contribution, state funds shall be deposited as costs are incurred to the 18.15construction fund to pay for the next $50,000,000 of costs of the project. Prior to any state 18.16funds being deposited in the construction fund, the NFL team must provide security or a 18.17financing commitment reasonably satisfactory to the authority for the balance of the 18.18required NFL team/private contribution and for payment of cost overruns if the NFL 18.19team assumes responsibility for stadium construction under section 473J.11. Thereafter, 18.20budgeted project costs shall be borne by the authority and the NFL team/private 18.21contributions in amounts proportionate to their remaining funding commitments.18.22(d) In the event the project terminates before the initial $100,000,000 in contributions 18.23are expended by the parties under this subdivision, the parties shall be reimbursed in the 18.24amounts they have deposited to the construction fund proportionate to project funding 18.25percentages, in the amounts of 56 percent by the authority and 44 percent by the NFL 18.26team/private contributions.18.27    Subd. 3.Lease or use agreements; 30-year term.The authority must enter into 18.28a long-term lease or use agreement with the NFL team for the NFL team's use of the 18.29stadium. The NFL team must agree to play all preseason, regular season, and postseason 18.30home games at the stadium. Training facilities must remain in Minnesota during the term 18.31of the lease or use agreement. The lease or use agreement must be for a term of at least 18.3230 years from the date of substantial completion of the stadium for professional football 18.33games. The lease or use agreement may provide options for the NFL team to extend the 18.34term for up to four additional periods of five years. The lease or use agreement must 18.35include terms for default, termination, and breach of the agreement. Recognizing that 18.36the presence of professional football provides to the state of Minnesota and its citizens 19.1highly valued, intangible benefits that are virtually impossible to quantify and, therefore, 19.2not recoverable in the event of the NFL team owner's breach of contract, the lease and 19.3use agreements must provide for specific performance and injunctive relief to enforce 19.4provisions relating to use of the stadium for professional football and must not include 19.5escape clauses or buyout provisions. The NFL team must not enter into or accept any 19.6agreement or requirement with or from any entity that is inconsistent with the NFL team's 19.7binding commitment to the 30-year term of the lease or use agreement or that would in 19.8any manner dilute, interfere with, or negate the provisions of the lease or use agreement, 19.9providing for specific performance or injunctive relief. The legislature conclusively 19.10determines, as a matter of public policy, that the lease or use agreement, and any grant 19.11agreement under this chapter that includes a specific performance clause:19.12(1) explicitly authorizes specific performance as a remedy for breach;19.13(2) is made for adequate consideration and upon terms which are otherwise fair 19.14and reasonable;19.15(3) has not been included through sharp practice, misrepresentation, or mistake;19.16(4) if specifically enforced, does not cause unreasonable or disproportionate hardship 19.17or loss to the NFL team or to third parties; and19.18(5) involves performance in a manner and the rendering of services of a nature and 19.19under circumstances that the beneficiary cannot be adequately compensated in damages.19.20    Subd. 4.Lease or use agreements; revenues, payments.A lease or use agreement 19.21shall include rent and other fees and expenses to be paid by the NFL team. The authority 19.22shall agree to provide in the lease or use agreement for the NFL team to receive all NFL 19.23and team event related revenues, including but not limited to, suite revenues, advertising, 19.24concessions, signage, broadcast and media, and club seat revenue. The agreement shall 19.25also provide that all naming rights to the stadium are retained by the NFL team, subject to 19.26the approval of the name or names by the authority consistent with those criteria set out 19.27in the lease or use agreement. The agreement shall provide for the authority to receive 19.28all general ticket revenues and other event revenues other than from NFL team games, 19.29NFL team-owned major league soccer games, and other NFL team events agreed to by 19.30the authority. The stadium authority, or any company managing the stadium facilities on 19.31behalf of the authority, shall provide a public notice and seek a formal solicitation for 19.32requests for proposals for any contracts for goods, services, sponsorships, or advertising 19.33or signage rights at the stadium in excess of $25,000 in accordance with the definitions 19.34and terms set forth in chapter 16C, with the stadium authority acting as the responsible 19.35authority for seeking any such formal solicitations and awarding any such contracts 19.36pursuant to such solicitations.20.1    Subd. 5.Notice of breach or default.Until 30 years from the date of stadium 20.2completion, the NFL team must provide written notice to the authority not less than 180 20.3days prior to any action, including any action imposed upon the NFL team by the NFL, 20.4which would result in a breach or default of provisions of the lease or use agreements 20.5required to be included under subdivision 3. If this notice provision is violated and the 20.6NFL team has already breached or been in default under the required provisions, the 20.7authority or the state of Minnesota may specifically enforce the lease or use agreement 20.8and Minnesota courts shall fashion equitable remedies so that the NFL team fulfills the 20.9conditions of the lease and use agreements.20.10    Subd. 6.Enforceable financial commitments.The authority must determine before 20.11stadium construction begins that all public and private funding sources for construction, 20.12operating expenses, and capital improvements and repairs of the stadium are included in 20.13written agreements. The committed funds must be adequate to design, construct, furnish, 20.14and equip the stadium, and pay projected operating expenses and the costs of capital 20.15improvements and repairs during the term of the lease or use agreement with the NFL 20.16team. The NFL team must provide the authority access to NFL team financial or other 20.17information, which the authority deems necessary for such determination. Any financial 20.18information obtained by the authority under this subdivision is nonpublic data under 20.19section 13.02, subdivision 9.20.20    Subd. 7.Environmental requirements.The authority must comply with all 20.21environmental requirements imposed by regulatory agencies for the stadium, site, and 20.22structure, except as provided by section 473J.09, subdivision 11, or by section 473J.17.20.23    Subd. 8.Public share on sale of NFL team.The lease or use agreement must 20.24provide that, if the NFL team is sold or an interest in the NFL team is sold after the 20.25effective date of this chapter, a portion of the sale price must be paid to the authority and 20.26deposited in a reserve fund for improvements to the stadium or expended as the authority 20.27may otherwise direct. The portion required to be so paid to the authority is 18 percent 20.28of the amount in excess of the purchase price of the NFL team by the selling owner or 20.29owners, declining to zero 15 years after commencement of stadium construction in 20.30increments of 1.2 percent each year. The agreement must provide exceptions for sales 20.31to members of the owners' family and entities and trusts beneficially owned by family 20.32members, sales to employees of equity interests aggregating up to ten percent, sales related 20.33to capital infusions not distributed to the owners, and sales amongst existing owners not 20.34exceeding 20 percent equity interest in the NFL team.20.35    Subd. 9.Authority's access to NFL team financial information.A notice 20.36provision for a material breach shall be agreed to between the authority and the NFL team. 21.1In the event there is a material breach by the NFL team under the lease or use agreement, 21.2the lease or use agreement must provide the authority access to audited financial statements 21.3of the NFL team and other financial information that the authority deems necessary to 21.4enforce the terms of any lease or use agreements. Any financial information obtained by 21.5the authority under this subdivision is nonpublic data under section 13.02, subdivision 9.21.6    Subd. 10.NFL team name retained.The lease or use agreement must provide 21.7that the NFL team and NFL will transfer to the state of Minnesota the Minnesota Vikings' 21.8heritage and records, including the name, logo, colors, history, playing records, trophies, 21.9and memorabilia in the event of relocation of the NFL team is in violation of the lease 21.10or use agreement.21.11    Subd. 11.Stadium design.(a) The authority and the NFL team will strive to build a 21.12stadium that is environmentally and energy efficient and will make an effort to build a 21.13stadium that is eligible to receive the Leadership in Energy and Environmental Design 21.14(LEED) certification for environmental design, and to the extent practicable, will strive to 21.15make the stadium design architecturally significant.21.16(b) The stadium design must, to the extent feasible, follow sustainable building 21.17guidelines established under section 16B.325.21.18(c) The authority and the team must ensure that the stadium be built with 21.19American-made steel that is made from Minnesota iron ore.21.20    Subd. 12.Necessary approvals.The authority and the NFL team must secure 21.21any necessary approvals to the terms of the lease and use agreement and the design and 21.22construction plans for the stadium, including prior approval of the NFL.21.23    Subd. 13.Affordable access.The lease or use agreement must provide for an 21.24agreed-upon number of affordable tickets to the professional sporting events held in the 21.25stadium.21.26    Subd. 14.Stadium builder's licenses.The authority shall own and retain the 21.27exclusive right to sell stadium builder's licenses in the stadium. The authority will retain 21.28the NFL team to act as the authority's agent in marketing and selling such licenses.21.29    Subd. 15.Major league soccer.The authority shall, for five years after the first 21.30NFL team home game is played in the stadium, grant the NFL team the exclusive right to 21.31establish major league soccer at the stadium. The authority and the NFL team may enter 21.32into an agreement providing the terms and conditions of such an arrangement, provided:21.33(1) if any of the NFL team owners whose family owns at least three percent of 21.34the NFL team purchases full or partial ownership in a major league soccer franchise, 21.35such franchise may play in the stadium under a use agreement with similar terms as are 21.36applicable to the NFL team at no additional rent, but including a provision of payment 22.1of game-day costs and reasonable marginal costs incurred by the authority as a result of 22.2the major league soccer team; and22.3(2) capital improvements required by a major league soccer franchise must be 22.4financed by the owners of the major league soccer team, unless otherwise agreed to by 22.5the authority.22.6    Subd. 16.NFL team-related entities.Subject to the prior approval of the authority, 22.7which shall not be unreasonably withheld, any of the obligations by the NFL team may 22.8be performed by the NFL team, a related entity, or a third party, and the NFL team, any 22.9entity related to the NFL team or third party may receive any revenues to which the NFL 22.10team is entitled hereunder; provided, however, the NFL team shall remain liable if any 22.11obligations are assigned to a related entity or third party.22.12    Sec. 16. [473J.17] MUNICIPAL ACTIVITIES.22.13    Subdivision 1.Property acquisition and disposition.The city may, to the extent 22.14legally permissible, acquire land, air rights, and other property interests within the 22.15development area for the stadium site and stadium infrastructure and convey it to the 22.16authority with or without consideration, prepare a site for development as a stadium, and 22.17acquire and construct any related stadium infrastructure. To the extent property parcels or 22.18interests acquired are more extensive than the stadium infrastructure requirements, the city 22.19may sell or otherwise dispose of the excess.22.20    Subd. 2.Claims.Except as may be mutually agreed to by the city and the authority, 22.21the city has no interest in or claim to any assets or revenues of the authority.22.22    Subd. 3.Environmental; planning and zoning.The authority is the responsible 22.23governmental unit for an environmental impact statement for the stadium prepared under 22.24section 116D.04, if an environmental impact statement is necessary. Notwithstanding 22.25section 116D.04, subdivision 2b, and implementing rules: (1) the environmental 22.26impact statement shall not be required to consider alternative stadium sites; and (2) the 22.27environmental impact statement must be determined to be adequate before commencing 22.28work on the foundation of the stadium, but the stadium and stadium infrastructure may 22.29otherwise be started and all preliminary and final government decisions and actions may 22.30be made and taken including, but not limited to, acquiring land; obtaining financing; 22.31granting permits or other land use approvals; entering into grant, lease, or use agreements; 22.32or preparing the site or related stadium infrastructure prior to a determination of the 22.33adequacy of the environmental impact statement.22.34    Subd. 4.Local government expenditure.The city may make expenditures or 22.35grants for other costs incidental and necessary to further the purposes of this chapter and 23.1may, by agreement, reimburse in whole or in part, any entity that has granted, loaned, or 23.2advanced funds to the city to further the purposes of this chapter. The city may reimburse 23.3the authority or a local governmental entity or make a grant to the authority or such a 23.4governmental unit or be reimbursed by the authority or local governmental entity for site 23.5acquisition, preparation of the site for stadium development, and stadium infrastructure.23.6    Subd. 5.Municipal authority.The legislature intends that, except as expressly 23.7limited herein, the city may acquire and develop stadium infrastructure, enter into contracts 23.8with the authority and other governmental or nongovernmental entities, appropriate funds, 23.9and make employees, consultants, and other revenues available for those purposes.23.10    Subd. 6.Stadium Implementation Committee; city review.In order to accomplish 23.11the objectives of this act within the required time frame, it is necessary to establish an 23.12alternative process for municipal land use and development review. It is hereby found 23.13and declared that the construction of a stadium within the development area is consistent 23.14with the adopted area plan, is the preferred stadium location, and is a permitted land use. 23.15This subdivision establishes a procedure for all land use and development reviews and 23.16approvals by the city of Minneapolis for the stadium and related stadium infrastructure 23.17and supersedes all land use and development rules and restrictions and procedures 23.18imposed by other law, charter, or ordinance, including without limitation section 15.99. 23.19No later than 30 days after timely compliance of the city as provided in article 4, section 4, 23.20of this act, the city of Minneapolis shall establish a stadium implementation committee 23.21to make recommendations on the design plans submitted for the stadium, and stadium 23.22infrastructure, and related improvements. The implementation committee must take 23.23action to issue its recommendations within the time frames established in the planning 23.24and construction timetable issued by the authority which shall provide for no less than 60 23.25days for the committee's review. The recommendations of the implementation committee 23.26shall be forwarded to the city of Minneapolis Planning Commission for an advisory 23.27recommendation and then to the city council for final action in a single resolution, which 23.28final action must be taken within 45 days of the submission of the recommendations to the 23.29planning commission. The city council shall not impose any unreasonable conditions on 23.30the recommendations of the implementation committee, nor take any action or impose 23.31any conditions that will result in delay from the time frames established in the planning 23.32and construction timetable or in additional overall costs. Failure of the city council to act 23.33within the 45-day period shall be deemed to be approval. The authority may seek de novo 23.34review in the district court of any city council action. The district court or any appellate 23.35court shall expedite review to the maximum extent possible and timely issue relief, orders, 23.36or opinions as necessary to give effect to the provisions and objectives in this act.24.1    Sec. 17. [473J.19] PROPERTY TAX EXEMPTION; SPECIAL ASSESSMENTS.24.2Any real or personal property acquired, owned, leased, controlled, used, or occupied 24.3by the authority for any of the purposes of this chapter, is acquired, owned, leased, 24.4controlled, used, and occupied for public, governmental, and municipal purposes. The 24.5stadium and stadium infrastructure are exempt from ad valorem taxation by the state 24.6or any political subdivision of the state provided that the properties are subject to 24.7special assessments levied by a political subdivision for a local improvement in amounts 24.8proportionate to and not exceeding the special benefit received by the properties from the 24.9improvement. No possible use of any of the properties in any manner different from their 24.10use under this chapter may be considered in determining the special benefit received by 24.11the properties. Notwithstanding section 272.01, subdivision 2, or 273.19, real or personal 24.12property which is subject to a lease or use agreement between the authority and another 24.13person for uses related to the purposes of this chapter, including the operation of the 24.14stadium and related parking facilities, is exempt from taxation regardless of the length of 24.15the lease or use agreement or the characteristics of the entity leasing or using the property. 24.16This section, insofar as it provides an exemption or special treatment, does not apply to 24.17any real property that is leased for residential, business, or commercial development or to 24.18a restaurant that is open for general business more than 200 days a year, or other purposes 24.19different from those contemplated in this chapter.24.20    Sec. 18. [473J.21] LIQUOR LICENSES.24.21At the request of the authority, the city may issue intoxicating liquor licenses that are 24.22reasonably requested for the premises of the stadium site. These licenses are in addition to 24.23the number authorized by law. All provisions of chapter 340A not inconsistent with this 24.24section apply to the licenses authorized under this section.24.25    Sec. 19. [473J.23] LOCAL TAXES.24.26No new or additional local sales or use tax shall be imposed on sales at the stadium 24.27site unless the tax is applicable throughout the taxing jurisdiction. Except for a tax 24.28imposed under article 7, no new or additional local tax shall be imposed on sales of tickets 24.29and admissions to NFL team, NFL team-owned major league soccer, or other team related 24.30events at the stadium, notwithstanding any law or ordinance, unless the tax is applicable 24.31throughout the taxing jurisdiction. The admissions and amusements tax currently imposed 24.32by the city of Minneapolis pursuant to Laws 1969, chapter 1092, may apply to admissions 24.33for football and NFL team related events, including NFL team-owned major league soccer, 24.34as provided in section 473J.15, subdivision 15, at the stadium.25.1    Sec. 20. [473J.25] METROPOLITAN SPORTS FACILITIES COMMISSION 25.2ASSETS; LIABILITIES TO AUTHORITY.25.3    Subdivision 1.Authority expenses.The Metropolitan Sports Facilities Commission 25.4shall pay the operating expenses of the authority including salaries, compensation, and 25.5other personnel, office, equipment, consultant and any other costs, until the commission is 25.6abolished pursuant to subdivision 3.25.7    Subd. 2.Transfer.Within 90 days of the enactment of this chapter, the Metropolitan 25.8Sports Facilities Commission shall pay its outstanding obligations, settle its accounts, and 25.9transfer its remaining assets, liabilities, and obligations to the authority, for its purposes.25.10    Subd. 3.Metropolitan Sports Facilities Commission abolished; interim powers 25.11conferred on authority.Upon transfer to the authority of all remaining assets, liabilities, 25.12and obligations of the Metropolitan Sports Facilities Commission, in subdivision 2, the 25.13Metropolitan Sports Facilities Commission is abolished. When the remaining assets, 25.14liabilities, and obligations of the Metropolitan Sports Facilities Commission have been 25.15transferred to the authority and the commission has been abolished, the powers and duties 25.16of the commission under sections 473.551 to 473.599, and any other law shall devolve 25.17upon the authority, in addition to the powers and duties of the authority under chapter 25.18473J, until the first NFL home game is played at the stadium.25.19    Subd. 4.Employees.Upon transfer of ownership all persons employed by the 25.20Metropolitan Sports Facilities Commission shall be transferred to the Minnesota Stadium 25.21Authority without loss of right or privilege. Nothing in this section shall be construed to 25.22give any such person the right or privilege to continue in the same level or classification 25.23of employment previously held. The Minnesota Stadium Authority may assign any such 25.24person to an employment level and classification which it deems appropriate and desirable 25.25in accordance with its personnel code.25.26    Sec. 21. EFFECTIVE DATE.25.27Except as otherwise provided, this article is effective the day following final 25.28enactment.25.29ARTICLE 225.30STATE STADIUM FUNDING25.31    Section 1. [16A.965] STADIUM APPROPRIATION BONDS.25.32    Subdivision 1.Definitions.(a) The definitions in this subdivision and in chapter 25.33473J apply to this section.26.1(b) "Appropriation bond" means a bond, note, or other similar instrument of the state 26.2payable during a biennium from one or more of the following sources:26.3(1) money appropriated by law from the general fund, including, without limitation, 26.4revenues deposited in the general fund as provided in articles 4 and 5, in any biennium for 26.5debt service due with respect to obligations described in subdivision 2, paragraph (b);26.6(2) proceeds of the sale of obligations described in subdivision 2, paragraph (b);26.7(3) payments received for that purpose under agreements and ancillary arrangements 26.8described in subdivision 2, paragraph (d); and26.9(4) investment earnings on amounts in clauses (1) to (3).26.10(c) "Debt service" means the amount payable in any biennium of principal, premium, 26.11if any, and interest on appropriation bonds.26.12    Subd. 2.Authorization to issue appropriation bonds.(a) Subject to the limitations 26.13of this subdivision, the commissioner may sell and issue appropriation bonds of the state 26.14under this section for public purposes as provided by law, including, in particular, the 26.15financing of all or a portion of the acquisition, construction, improving, and equipping 26.16of the stadium project of the Minnesota Stadium Authority as provided by chapter 473J. 26.17Proceeds of the appropriation bonds must be credited to a special appropriation stadium 26.18bond proceeds fund in the state treasury. Net income from investment of the proceeds, 26.19as estimated by the commissioner, must be credited to the special appropriation stadium 26.20bond proceeds fund.26.21(b) Appropriation bonds may be sold and issued in amounts that, in the opinion of 26.22the commissioner, are necessary to provide sufficient funds, not to exceed $548,000,000 26.23net of costs of issuance, deposits for debt service reserve funds, and costs of credit 26.24enhancement for achieving the purposes authorized as provided under paragraph (a), and 26.25pay debt service, pay costs of issuance, make deposits to reserve funds, pay the costs 26.26of credit enhancement, or make payments under other agreements entered into under 26.27paragraph (d); provided, however, that appropriation bonds issued and unpaid shall not 26.28exceed $650,000,000 in principal amount, excluding refunding bonds sold and issued 26.29under subdivision 4.26.30(c) Appropriation bonds may be issued from time to time in one or more series on 26.31the terms and conditions the commissioner determines to be in the best interests of the 26.32state, but the term on any series of appropriation bonds may not exceed 30 years. The 26.33appropriation bonds of each issue and series thereof shall be dated and bear interest, 26.34and may be includable in or excludable from the gross income of the owners for federal 26.35income tax purposes.27.1(d) At the time of, or in anticipation of, issuing the appropriation bonds, and at any 27.2time thereafter, so long as the appropriation bonds are outstanding, the commissioner may 27.3enter into agreements and ancillary arrangements relating to the appropriation bonds, 27.4including but not limited to trust indentures, grant agreements, lease or use agreements, 27.5operating agreements, management agreements, liquidity facilities, remarketing or 27.6dealer agreements, letter of credit agreements, insurance policies, guaranty agreements, 27.7reimbursement agreements, indexing agreements, or interest exchange agreements. Any 27.8payments made or received according to the agreement or ancillary arrangement shall be 27.9made from or deposited as provided in the agreement or ancillary arrangement. The 27.10determination of the commissioner included in an interest exchange agreement that the 27.11agreement relates to an appropriation bond shall be conclusive.27.12(e) The commissioner may enter into written agreements or contracts relating to the 27.13continuing disclosure of information necessary to comply with, or facilitate the issuance 27.14of appropriation bonds in accordance with federal securities laws, rules, and regulations, 27.15including Securities and Exchange Commission rules and regulations in Code of Federal 27.16Regulations, title 17, section 240.15c 2-12. An agreement may be in the form of covenants 27.17with purchasers and holders of appropriation bonds set forth in the order or resolution 27.18authorizing the issuance of the appropriation bonds, or a separate document authorized 27.19by the order or resolution.27.20(f) The appropriation bonds are not subject to chapter 16C.27.21    Subd. 3.Form; procedure.(a) Appropriation bonds may be issued in the form 27.22of bonds, notes, or other similar instruments, and in the manner provided in section 27.2316A.672. In the event that any provision of section 16A.672 conflicts with this section, 27.24this section shall control.27.25(b) Every appropriation bond shall include a conspicuous statement of the limitation 27.26established in subdivision 6.27.27(c) Appropriation bonds may be sold at either public or private sale upon such terms 27.28as the commissioner shall determine are not inconsistent with this section and may be sold 27.29at any price or percentage of par value. Any bid received may be rejected.27.30(d) Appropriation bonds must bear interest at a fixed or variable rate.27.31(e) Notwithstanding any other law, appropriation bonds issued under this section 27.32shall be fully negotiable.27.33    Subd. 4.Refunding bonds.The commissioner from time to time may issue 27.34appropriation bonds for the purpose of refunding any appropriation bonds then 27.35outstanding, including the payment of any redemption premiums on the bonds, any 27.36interest accrued or to accrue to the redemption date, and costs related to the issuance and 28.1sale of the refunding bonds. The proceeds of any refunding bonds may, in the discretion of 28.2the commissioner, be applied to the purchase or payment at maturity of the appropriation 28.3bonds to be refunded, to the redemption of the outstanding appropriation bonds on any 28.4redemption date, or to pay interest on the refunding bonds and may, pending application, 28.5be placed in escrow to be applied to the purchase, payment, retirement, or redemption. Any 28.6escrowed proceeds, pending such use, may be invested and reinvested in obligations that 28.7are authorized investments under section 11A.24. The income earned or realized on the 28.8investment may also be applied to the payment of the appropriation bonds to be refunded 28.9or interest or premiums on the refunded appropriation bonds, or to pay interest on the 28.10refunding bonds. After the terms of the escrow have been fully satisfied, any balance of the 28.11proceeds and any investment income may be returned to the general fund or, if applicable, 28.12the special appropriation stadium bond proceeds fund for use in any lawful manner. All 28.13refunding bonds issued under this subdivision must be prepared, executed, delivered, and 28.14secured by appropriations in the same manner as the appropriation bonds to be refunded.28.15    Subd. 5.Appropriation bonds as legal investments.Any of the following entities 28.16may legally invest any sinking funds, money, or other funds belonging to them or under 28.17their control in any appropriation bonds issued under this section:28.18(1) the state, the investment board, public officers, municipal corporations, political 28.19subdivisions, and public bodies;28.20(2) banks and bankers, savings and loan associations, credit unions, trust companies, 28.21savings banks and institutions, investment companies, insurance companies, insurance 28.22associations, and other persons carrying on a banking or insurance business; and28.23(3) personal representatives, guardians, trustees, and other fiduciaries.28.24    Subd. 6.No full faith and credit; state not required to make appropriations.28.25The appropriation bonds are not public debt of the state, and the full faith, credit, and 28.26taxing powers of the state are not pledged to the payment of the appropriation bonds or to 28.27any payment that the state agrees to make under this section. Appropriation bonds shall 28.28not be obligations paid directly, in whole or in part, from a tax of statewide application 28.29on any class of property, income, transaction, or privilege. Appropriation bonds shall be 28.30payable in each fiscal year only from amounts that the legislature may appropriate for debt 28.31service for any fiscal year, provided that nothing in this section shall be construed to 28.32require the state to appropriate funds sufficient to make debt service payments with respect 28.33to the appropriation bonds in any fiscal year. Appropriation bonds shall be canceled and 28.34shall no longer be outstanding on the earlier of (1) the first day of a fiscal year for which 28.35the legislature shall not have appropriated amounts sufficient for debt service, or (2) the 28.36date of final payment of the principal of and interest on the appropriation bonds.29.1    Subd. 7.Appropriation of proceeds.The proceeds of appropriation bonds and 29.2interest credited to the special appropriation stadium bond proceeds fund are appropriated 29.3to the commissioner for payment of capital expenses, debt service on outstanding 29.4indebtedness of the state, operating and capital reserves of the authority, and the funding 29.5of debt service reserves for the appropriation bonds, each as permitted by state and federal 29.6law, and nonsalary expenses incurred in conjunction with the sale of the appropriation 29.7bonds, and such proceeds may be granted, loaned, or otherwise provided to the authority 29.8for the public purpose provided by subdivision 2, paragraph (a).29.9    Subd. 8.Commissioner; determination of available revenues.(a) By March 15 29.10of each fiscal year, the commissioner, in consultation with the commissioner of revenue, 29.11shall determine the estimated increase in revenues received from taxes imposed under 29.12chapter 297E over the estimated revenues under the February 2012 revenue forecast for 29.13that fiscal year. For fiscal years after fiscal year 2015, the commissioner shall use the 29.14February 2012 revenue forecast for fiscal year 2015 as the baseline. All calculations under 29.15this paragraph must be made net of estimated refunds of the taxes required to be paid.29.16(b) Available revenues for purposes of subdivision 9, equal the amount determined 29.17under paragraph (a), less the following amounts for the fiscal year:29.18(1) the appropriation to principal and interest on appropriation bonds under 29.19subdivision 9, paragraph (a);29.20(2) the appropriations under article 5 for administration and any successor 29.21appropriation;29.22(3) the reduction in revenues resulting from the sales tax exemptions under section 29.23297A.71;29.24(4) reimbursements authorized by section 473J.15, subdivision 2; and29.25(5) payment of compulsive gambling appropriations under article 5 and any 29.26successor appropriation.29.27(c) If the estimated increase in revenues under paragraph (a) for the fiscal year are 29.28less than or equal to $52,000,000, then available revenues, as determined under paragraph 29.29(b), are allocated:29.30(1) 50 percent to be used for appropriations under subdivision 9, paragraph (a); and29.31(2) 50 percent to be used for appropriations under subdivision 9, paragraph (b)29.32(d) If the estimated increase in revenues under paragraph (a) for the fiscal year are 29.33greater than $52,000,000, the first $16,000,000 of any available revenues, as determined 29.34under paragraph (b), is allocated for payment of gambling tax rebates under section 29.35297E.02, subdivision 12, and the remainder is allocated as provided under paragraph 29.36(c), clauses (1) and (2).30.1(e) The provisions of this subdivision apply only after the issuance of appropriation 30.2bonds under subdivision 2.30.3    Subd. 9.Appropriation for debt service and other purposes.(a) The amount 30.4needed to pay principal and interest on appropriation bonds issued under this section is 30.5appropriated each year from the general fund to the commissioner, subject to repeal, 30.6unallotment under section 16A.152, or cancellation otherwise pursuant to subdivision 6, 30.7for deposit into the bond payment accounts established for such purpose in the special 30.8appropriation stadium bond proceeds fund.30.9(b) To the extent the commissioner determines revenues are available under the 30.10provisions of subdivision 8, paragraph (b), for the fiscal year, the following amounts 30.11are appropriated from the general fund:30.12(1) to replenish the amount on deposit in any debt service reserve account established 30.13with respect to the appropriation bonds to the debt service reserve requirement amount as 30.14determined by order of the commissioner; and30.15(2) to the extent not required under clause (1), for deposit to any general reserve 30.16account established by order of the commissioner for application against any shortfall in 30.17the amounts deposited to the general fund pursuant to section 297A.994.30.18    Subd. 10.Waiver of immunity.The waiver of immunity by the state provided for 30.19by section 3.751, subdivision 1, shall be applicable to the appropriation bonds and any 30.20ancillary contracts to which the commissioner is a party.30.21    Subd. 11.Validation.(a) Appropriation bonds issued under this section may be 30.22validated in the manner provided by this subdivision. If comparable appropriation bonds 30.23are judicially determined to be valid, nothing in this subdivision shall be construed 30.24to prevent the sale or delivery of any appropriation bonds or notes without entry of a 30.25judgment of validation by the Minnesota Supreme Court pursuant to this subdivision with 30.26respect to the appropriation bonds authorized under this section.30.27(b) Any appropriation bonds issued under this section that are validated shall be 30.28validated in the manner provided by this subdivision.30.29(c) The Minnesota Supreme Court shall have original jurisdiction to determine the 30.30validation of appropriation bonds and all matters connected therewith.30.31(d) The commissioner may determine the commissioner's authority to issue 30.32appropriation bonds and the legality of all proceedings in connection with issuing bonds. 30.33For this purpose, a complaint shall be filed by the commissioner in the Minnesota Supreme 30.34Court against the state and the taxpayers and citizens.31.1(e) As a condition precedent to filing of a complaint for the validation of 31.2appropriation bonds, the commissioner shall take action providing for the issuance of 31.3appropriation bonds in accordance with law.31.4(f) The complaint shall set out the state's authority to issue appropriation bonds, the 31.5action or proceeding authorizing the issue and its adoption, all other essential proceedings 31.6had or taken in connection with issuing bonds, the amount of the appropriation bonds to 31.7be issued and the maximum interest they are to bear, and all other pertinent matters.31.8(g) The Minnesota Supreme Court shall issue an order directed against the state and 31.9taxpayers, citizens, and others having or claiming any right, title, or interest affected by 31.10the issuance of appropriation bonds, or to be affected by the bonds, allowing all persons, 31.11in general terms and without naming them, and the state through its attorney general, to 31.12appear before the Minnesota Supreme Court at a designated time and place and show 31.13why the complaint should not be granted and the proceedings and appropriation bonds 31.14validated. A copy of the complaint and order shall be served on the attorney general at 31.15least 20 days before the time fixed for hearing. The attorney general shall examine the 31.16complaint, and, if it appears or there is reason to believe that it is defective, insufficient, or 31.17untrue, or if in the opinion of the attorney general the issuance of the appropriation bonds 31.18in question has not been duly authorized, defense shall be made by the attorney general as 31.19the attorney general deems appropriate.31.20(h) Before the date set for hearing, as directed by the Minnesota Supreme Court, 31.21either the clerk of the Minnesota appellate courts or the commissioner shall publish a copy 31.22of the order in a legal newspaper of general circulation in Ramsey County and the state, at 31.23least once each week for two consecutive weeks, commencing with the first publication, 31.24which shall not be less than 20 days before the date set for hearing. By this publication, 31.25all taxpayers, citizens, and others having or claiming any right, title, or interest in the 31.26state, are made parties defendant to the action and the Minnesota Supreme Court has 31.27jurisdiction of them to the same extent as if named as defendants in the complaint and 31.28personally served with process.31.29(i) Any taxpayer, citizen, or person interested may become a party to the action by 31.30moving against or pleading to the complaint at or before the time set for hearing. The 31.31Minnesota Supreme Court shall determine all questions of law and fact and make orders 31.32that will enable it to properly try and determine the action and render a final judgment 31.33within 30 days of the hearing with the least possible delay.31.34(j) If the judgment validates appropriation bonds, the judgment is forever conclusive 31.35as to all matters adjudicated and as against all parties affected and all others having or 31.36claiming any right, title, or interest affected by the issuance of appropriation bonds, or to 32.1be affected in any way by issuing the bonds, and the validity of appropriation bonds or of 32.2any revenues pledged for the payment of the bonds, or of the proceedings authorizing the 32.3issuance of the bonds, including any remedies provided for their collection, shall never 32.4be called in question in any court by any person or party.32.5(k)(1) Appropriation bonds, when validated under this section, shall have stamped 32.6or written on the bonds, by the proper officers of the state issuing them, a statement 32.7in substantially the following form: "This appropriation bond is one of a series of 32.8appropriation bonds which were validated by judgment of the Supreme Court of the State 32.9of Minnesota, rendered on ……. , ....... (year)".32.10(2) A certified copy of the judgment or decree shall be received as evidence in any 32.11court in this state.32.12(l) The costs shall be paid by the state, except when a taxpayer, citizen, or other 32.13person contests the action or intervenes, the court may tax the whole or any part of the 32.14costs against the person that is equitable.32.15(m) A justice of the Minnesota Supreme Court is not disqualified in any validation 32.16action because the justice is a landowner or taxpayer of the state.32.17    Sec. 2. APPROPRIATION.32.18If state appropriation bonds have not been issued under Minnesota Statutes, section 32.1916A.965, amounts not to exceed the increased revenues estimated by the commissioner 32.20of management and budget under Minnesota Statutes, section 16A.965, subdivision 8, 32.21paragraph (a), are appropriated to the commissioner of management and budget to make 32.22grants to the Minnesota Stadium Authority for stadium costs as defined under Minnesota 32.23Statutes, section 473J.03, subdivision 8.32.24ARTICLE 332.25CONFORMING CHANGES32.26    Section 1. Minnesota Statutes 2010, section 3.971, subdivision 6, is amended to read:32.27    Subd. 6. Financial audits. The legislative auditor shall audit the financial 32.28statements of the state of Minnesota required by section 
         16A.50 and, as resources permit, 32.29shall audit Minnesota State Colleges and Universities, the University of Minnesota, state 32.30agencies, departments, boards, commissions, courts, and other state organizations subject 32.31to audit by the legislative auditor, including the State Agricultural Society, Agricultural 32.32Utilization Research Institute, Enterprise Minnesota, Inc., Minnesota Historical 32.33Society, Labor Interpretive Center, Minnesota Partnership for Action Against Tobacco, 32.34Metropolitan Sports Facilities Commission, Metropolitan Airports Commission, and 33.1Metropolitan Mosquito Control District. Financial audits must be conducted according to 33.2generally accepted government auditing standards. The legislative auditor shall see that 33.3all provisions of law respecting the appropriate and economic use of public funds are 33.4complied with and may, as part of a financial audit or separately, investigate allegations 33.5of noncompliance.33.6    Sec. 2. Minnesota Statutes 2010, section 13.55, subdivision 1, is amended to read:33.7    Subdivision 1. Not public classification. The following data received, created, or 33.8maintained by or for publicly owned and operated convention facilities, or civic center 33.9authorities, or the Metropolitan Sports Facilities Commission are classified as nonpublic 33.10data pursuant to section 
         13.02, subdivision 9; or private data on individuals pursuant 33.11to section 
         13.02, subdivision 12:33.12(a) a letter or other documentation from any person who makes inquiry to or who is 33.13contacted by the facility regarding the availability of the facility for staging events;33.14(b) identity of firms and corporations which contact the facility;33.15(c) type of event which they wish to stage in the facility;33.16(d) suggested terms of rentals; and33.17(e) responses of authority staff to these inquiries.33.18    Sec. 3. Minnesota Statutes 2011 Supplement, section 340A.404, subdivision 1, is 33.19amended to read:33.20    Subdivision 1. Cities. (a) A city may issue an on-sale intoxicating liquor license to 33.21the following establishments located within its jurisdiction:33.22(1) hotels;33.23(2) restaurants;33.24(3) bowling centers;33.25(4) clubs or congressionally chartered veterans organizations with the approval of 33.26the commissioner, provided that the organization has been in existence for at least three 33.27years and liquor sales will only be to members and bona fide guests, except that a club 33.28may permit the general public to participate in a wine tasting conducted at the club under 33.29section 
         340A.419; and33.30(5) sports facilities located on land owned by the Metropolitan Sports Commission; 33.31and33.32(6) exclusive liquor stores.33.33(b) A city may issue an on-sale intoxicating liquor license, an on-sale wine license, 33.34or an on-sale malt liquor license to a theater within the city, notwithstanding any law, local 34.1ordinance, or charter provision. A license issued under this paragraph authorizes sales on 34.2all days of the week to persons attending events at the theater.34.3(c) A city may issue an on-sale intoxicating liquor license, an on-sale wine license, 34.4or an on-sale malt liquor license to a convention center within the city, notwithstanding 34.5any law, local ordinance, or charter provision. A license issued under this paragraph 34.6authorizes sales on all days of the week to persons attending events at the convention 34.7center. This paragraph does not apply to convention centers located in the seven-county 34.8metropolitan area.34.9(d) A city may issue an on-sale wine license and an on-sale malt liquor license to 34.10a person who is the owner of a summer collegiate league baseball team, or to a person 34.11holding a concessions or management contract with the owner, for beverage sales at a 34.12ballpark or stadium located within the city for the purposes of summer collegiate league 34.13baseball games at the ballpark or stadium, notwithstanding any law, local ordinance, or 34.14charter provision. A license issued under this paragraph authorizes sales on all days of the 34.15week to persons attending baseball games at the ballpark or stadium.34.16    Sec. 4. Minnesota Statutes 2010, section 352.01, subdivision 2a, is amended to read:34.17    Subd. 2a. Included employees. (a) "State employee" includes:34.18    (1) employees of the Minnesota Historical Society;34.19    (2) employees of the State Horticultural Society;34.20    (3) employees of the Minnesota Crop Improvement Association;34.21    (4) employees of the adjutant general whose salaries are paid from federal funds and 34.22who are not covered by any federal civilian employees retirement system;34.23    (5) employees of the Minnesota State Colleges and Universities who are employed 34.24under the university or college activities program;34.25    (6) currently contributing employees covered by the system who are temporarily 34.26employed by the legislature during a legislative session or any currently contributing 34.27employee employed for any special service as defined in subdivision 2b, clause (8);34.28    (7) employees of the legislature who are appointed without a limit on the duration 34.29of their employment and persons employed or designated by the legislature or by a 34.30legislative committee or commission or other competent authority to conduct a special 34.31inquiry, investigation, examination, or installation;34.32    (8) trainees who are employed on a full-time established training program 34.33performing the duties of the classified position for which they will be eligible to receive 34.34immediate appointment at the completion of the training period;34.35    (9) employees of the Minnesota Safety Council;35.1    (10) any employees who are on authorized leave of absence from the Transit 35.2Operating Division of the former Metropolitan Transit Commission and who are employed 35.3by the labor organization which is the exclusive bargaining agent representing employees 35.4of the Transit Operating Division;35.5    (11) employees of the Metropolitan Council, Metropolitan Parks and Open Space 35.6Commission, Metropolitan Sports Facilities Commission, or Metropolitan Mosquito 35.7Control Commission unless excluded under subdivision 2b or are covered by another 35.8public pension fund or plan under section 
         473.415, subdivision 3;35.9    (12) judges of the Tax Court;35.10    (13) personnel who were employed on June 30, 1992, by the University of 35.11Minnesota in the management, operation, or maintenance of its heating plant facilities, 35.12whose employment transfers to an employer assuming operation of the heating plant 35.13facilities, so long as the person is employed at the University of Minnesota heating plant 35.14by that employer or by its successor organization;35.15    (14) personnel who are employed as seasonal employees in the classified or 35.16unclassified service;35.17    (15) persons who are employed by the Department of Commerce as a peace officer 35.18in the Insurance Fraud Prevention Division under section 
         45.0135 who have attained the 35.19mandatory retirement age specified in section 
         43A.34, subdivision 4;35.20    (16) employees of the University of Minnesota unless excluded under subdivision 35.212b, clause (3);35.22    (17) employees of the Middle Management Association whose employment began 35.23after July 1, 2007, and to whom section 
         352.029 does not apply; and35.24    (18) employees of the Minnesota Government Engineers Council to whom section 35.25352.029
          does not apply.35.26    (b) Employees specified in paragraph (a), clause (13), are included employees under 35.27paragraph (a) if employer and employee contributions are made in a timely manner in the 35.28amounts required by section 
         352.04. Employee contributions must be deducted from 35.29salary. Employer contributions are the sole obligation of the employer assuming operation 35.30of the University of Minnesota heating plant facilities or any successor organizations to 35.31that employer.35.32    Sec. 5. Minnesota Statutes 2010, section 473.121, subdivision 5a, is amended to read:35.33    Subd. 5a. Metropolitan agency. "Metropolitan agency" means the Metropolitan 35.34Parks and Open Space Commission, and the Metropolitan Airports Commission, and 35.35Metropolitan Sports Facilities Commission.36.1    Sec. 6. Minnesota Statutes 2010, section 473.164, is amended to read:36.2473.164 SPORTS, AIRPORT COMMISSIONS TO PAY COUNCIL COSTS.36.3    Subdivision 1. Annually reimburse. The Metropolitan Sports Facilities 36.4Commission and the Metropolitan Airports Commission shall annually reimburse the 36.5council for costs incurred by the council in the discharge of its responsibilities relating to 36.6the commission. The costs may be charged against any revenue sources of the commission 36.7as determined by the commission.36.8    Subd. 2. Estimates, budget, transfer. On or before May 1 of each year, the council 36.9shall transmit to each the commission an estimate of the costs which the council will 36.10incur in the discharge of its responsibilities related to the commission in the next budget 36.11year including, without limitation, costs in connection with the preparation, review, 36.12implementation and defense of plans, programs and budgets of the commission. Each The36.13commission shall include the estimates in its budget for the next budget year and may 36.14transmit its comments concerning the estimated amount to the council during the budget 36.15review process. Prior to December 15 of each year, the amount budgeted by each the36.16commission for the next budget year may be changed following approval by the council. 36.17During each budget year, the commission shall transfer budgeted funds to the council in 36.18advance when requested by the council.36.19    Subd. 3. Final statement. At the conclusion of each budget year, the council, in 36.20cooperation with each the commission, shall adopt a final statement of costs incurred by the 36.21council for each the commission. Where costs incurred in the budget year have exceeded 36.22the amount budgeted, each the commission shall transfer to the council the additional 36.23moneys needed to pay the amount of the costs in excess of the amount budgeted, and shall 36.24include a sum in its next budget. Any excess of budgeted costs over actual costs may be 36.25retained by the council and applied to the payment of budgeted costs in the next year.36.26    Sec. 7. Minnesota Statutes 2010, section 473.565, subdivision 1, is amended to read:36.27    Subdivision 1. In MSRS; exceptions. All employees of the former commission 36.28shall be members of the Minnesota State Retirement System with respect to service 36.29rendered on or after May 17, 1977, except as provided in this section.36.30    Sec. 8.  REPEALER.36.31Minnesota Statutes 2010, sections 473.551; 473.552; 473.553, subdivisions 1, 2, 3, 36.324, 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, 36.3313, 14, 16, and 17; 473.561; 473.564, subdivisions 2 and 3; 473.572; 473.581; 473.592, 36.34subdivision 1; 473.595; 473.598; 473.599; and 473.76, are repealed.37.1    Sec. 9. EFFECTIVE DATE.37.2This article is effective June 30, 2016.37.3ARTICLE 437.4MINNEAPOLIS CONVENTION CENTER37.5    Section 1. [297A.994] CITY OF MINNEAPOLIS SALES TAX; ALLOCATION 37.6OF REVENUES.37.7    Subdivision 1.Scope.Notwithstanding the provisions of section 297A.99, 37.8subdivision 11, the provisions of this section govern the remittance of the proceeds of 37.9taxes imposed by the city of Minneapolis under the special law. 37.10    Subd. 2.Definitions.(a) For purposes of this section, the following definitions 37.11apply.37.12(b) "City" means the city of Minneapolis.37.13(c) "Special law" means Laws 1986, chapter 396, sections 4 and 5, as amended.37.14(d) "Tax" means the sales taxes imposed by the city under the special law.37.15(e) The terms defined under section 473J.03 apply for purposes of this section.37.16    Subd. 3.General allocation of revenues.The commissioner shall apply the 37.17revenues from the taxes as follows:37.18(1) the commissioner must deduct the costs of collecting and administering the taxes, 37.19according to the applicable law and agreements between the commissioner and the city. 37.20For revenues from the general sales tax, the commissioner must deduct a proportionate 37.21share of the cost of collection, as described in section 297A.99, subdivision 11;37.22(2) after deducting the costs in clause (1), the commissioner must deduct refunds of 37.23any of these taxes due to taxpayers, if any;37.24(3) after making the deductions provided in clause (2), notwithstanding the 37.25provisions of any agreement between the commissioner and the city providing for 37.26collection and remittance of these taxes, the commissioner must deposit to the general 37.27fund the amounts specified in subdivision 4; and37.28(4) after depositing to the general fund under clause (3) as specified in subdivision 37.294, the commissioner must remit the remainder to the city for the uses provided in the 37.30special law.37.31    Subd. 4.General fund allocations.(a) The commissioner must deposit to the 37.32general fund the following amounts, as required by subdivision 3, clause (3):37.33(1) for state bond debt service support beginning in calendar year 2021, and for each 37.34calendar year thereafter through calendar year 2046, proportionate amounts periodically 37.35so that not later than December 31, 2046, an aggregate annual amount equal to a present 38.1value of $150,000,000 has been deposited in the general fund. To determine aggregate 38.2present value, the commissioner must consult with the commissioner of management and 38.3budget regarding the present value dates, discount rate or rates, and schedules of annual 38.4amounts. The present value date or dates must be based on the date or dates bonds are 38.5sold under section 16A.965, or the date or dates other state funds, if any, are deposited 38.6into the construction fund. The discount rate or rates must be based on the true interest 38.7cost of the bonds issued under section 16A.965, or an equivalent 30-year bond index, as 38.8determined by the commissioner of management and budget. The schedule of annual 38.9amounts must be certified to the commissioner by the commissioner of management and 38.10budget and the finance officer of the city;38.11(2) for the capital improvement reserve appropriation to stadium authority beginning 38.12in calendar year 2021, and for each calendar year thereafter through calendar year 2046, 38.13so that not later than January 1, 2022, and as of January 1 of each following year, an 38.14aggregate annual amount equal to the amount paid by the state for calendar year 2021, 38.15under section 473J.13, subdivision 4, increased each year by an annual adjustment factor;38.16(3) for the operating expense appropriation to stadium authority beginning in 38.17calendar year 2021, and for each calendar year thereafter through calendar year 2046, 38.18so that not later than January 1, 2022, and as of January 1 of each following year, an 38.19aggregate annual amount equal to the amount paid by the state for calendar year 2021 38.20under section 473J.13, subdivision 2, increased each year by an annual adjustment factor;38.21(4) for recapture of NFL team advances for capital improvements and operating 38.22expenses for calendar years 2016 through 2020 beginning in calendar year 2021, and 38.23for each calendar year thereafter until all amounts under this clause have been paid, 38.24proportionate amounts periodically until an aggregate amount equal to the present value of 38.25all amounts paid by the NFL team have been deposited in the general fund. To determine 38.26the present value of the amounts paid by the NFL team to the authority and the present 38.27value of amounts deposited to the general fund under this clause, the commissioner shall 38.28consult with the commissioner of management and budget and the NFL team regarding the 38.29present value dates, discount rate or rates, and schedule of annual amounts. The present 38.30value dates must be based on the dates NFL team funds are paid to the authority, or the 38.31dates the commissioner of revenue deposits taxes for purposes of this clause to the general 38.32fund. The discount rates must be based on the reasonably equivalent cost of NFL team 38.33funds as determined by the commissioner of management and budget after consulting with 38.34the NFL team. The schedule of annual amounts must be revised to reflect amounts paid 38.35under section 473J.09, subdivision 13, and taxes deposited to the general fund from time 38.36to time under this clause, and the schedule and revised schedules must be certified to the 39.1commissioner by the commissioner of management and budget and the finance officer 39.2of the city, and are transferred as accrued from the general fund to the NFL team, for 39.3repayment of advances made by the NFL team to the city of Minneapolis; and39.4(5) to capture increases in taxes imposed under the special law, for the benefit 39.5of the stadium authority, beginning in calendar year 2013 and for each calendar year 39.6thereafter through 2046, there shall be deposited to the general fund by February 15 of 39.7each following year, amounts calculated by the commissioner under this clause. For 39.8each year, the commissioner shall determine the excess, if any, of the taxes received 39.9by the commissioner over the benchmark scheduled amounts of the taxes, as described 39.10in this section. The benchmark scheduled amounts for each year must be based on the 39.11actual amount of the taxes for calendar year 2011 inflated for each subsequent year at an 39.12annual rate of two percent, according to a schedule certified to the commissioner by the 39.13commissioner of management and budget and the finance officer of the city. The amounts 39.14to be deposited to the general fund by the commissioner for each year equal:39.15(i) zero for the amount of the taxes for the year up to a scheduled benchmark of 39.16$1,000,000, inflated at two percent per year, in excess of the taxes for calendar year 2011;39.17(ii) 50 percent times the difference, if any, by which the amount of the taxes for 39.18the year exceeds the scheduled benchmark in item (i), as inflated, but not greater than a 39.19scheduled benchmark of $3,000,000, inflated at two percent per year, in excess of the 39.20taxes for calendar year 2011; and39.21(iii) 25 percent times the difference, if any, by which the amount of the taxes for the 39.22year exceeds the scheduled benchmark of $3,000,000, inflated at two percent per year, in 39.23excess of the taxes for calendar year 2011.39.24(b) The annual adjustment factor for purposes of this section and the special law 39.25for any year equals the increase, if any, in the amount of these taxes received by the 39.26commissioner in the preceding year over the amount received in the year prior to the 39.27preceding year, expressed as a percentage of the amount received in the year prior to the 39.28preceding year; provided, that the adjustment factor for any year must not be less than 39.29zero percent nor more than five percent.39.30    Sec. 2. Laws 1986, chapter 396, section 4, as amended by Laws 1987, chapter 55, 39.31sections 5 and 6, and Laws 2009, chapter 88, article 4, sections 11 and 12, is amended to 39.32read:39.33    Sec. 4. SALES AND USE TAX.39.34    Subdivision 1. Imposition. Notwithstanding Minnesota Statutes, section 
         477A.016, 39.35or any other contrary provision of law, ordinance, or city charter, upon approval by 40.1the city's board of estimate and taxation by a vote of at least five members, the city of 40.2Minneapolis may by ordinance impose an additional sales tax of up to one-half of one 40.3percent on sales taxable pursuant to Minnesota Statutes, chapter 297A that occur within 40.4the city, and may also by ordinance impose an additional compensating use tax of up to 40.5one-half of one percent on uses of property within the city, the sale of which would be 40.6subject to the additional sales tax but for the fact such property was sold outside the city. 40.7The tax may not be imposed on gross receipts from sales of intoxicating liquor that are 40.8exempt from taxation under sections 297A.25 to 297A.257 or other any provision of 40.9chapter 297A exempting sales of intoxicating liquor and use from taxation, including 40.10amendments adopted after enactment of this act.40.11    For purposes of this subdivision, sales that occur within the city shall not include (a) 40.12the sale of tangible personal property (i) which, without intermediate use, is shipped or 40.13transported outside Minneapolis by the purchaser and thereafter used in a trade or business 40.14or is stored, processed, fabricated or manufactured into, attached to or incorporated into 40.15other tangible personal property transported or shipped outside Minneapolis and thereafter 40.16used in a trade or business outside Minneapolis, and which is not thereafter returned to a 40.17point within Minneapolis, except in the course of interstate or intrastate commerce (storage 40.18shall not constitute intermediate use); or (ii) which the seller delivers to a common carrier 40.19for delivery outside Minneapolis, places in the United States mail or parcel post directed 40.20to the purchaser outside Minneapolis, or delivers to the purchaser outside Minneapolis by 40.21means of the seller's own delivery vehicles, and which is not thereafter returned to a point 40.22within Minneapolis, except in the course of interstate or intrastate commerce; or (b) sales 40.23which would be described in clause (e) or (u) of Minnesota Statutes, section 297A.25, 40.24subdivision 1 297A.68, subdivision 11 or 16, if the word "Minneapolis" were substituted 40.25for the words "Minnesota" or "state of Minnesota" in such clauses subdivisions. A tax 40.26may be imposed under this section only if the taxes imposed under section 5 are imposed 40.27at the maximum rate allowed under that section. The tax authorized by this section shall 40.28be imposed, until December 31, 2046. The tax may be further imposed through December 40.2931, 2050, by order of the commissioner of management and budget, as specified under 40.30article 7, section 1. The tax may be imposed and may be adjusted periodically by the city 40.31council in conformity with Minnesota Statutes, section 297A.99, subdivision 12, such that 40.32the rate imposed, rounded to the next highest one-tenth of one percent, does not exceed 40.33the rate estimated to be required to produceproduces revenue sufficient to finance the 40.34costs purposes described in subdivision subdivisions 3 and 4, but in no case may the rate 40.35exceed one-half of one percent.41.1    Subd. 2. Enforcement; collection. (a) Except as provided in paragraph (b), 41.2these taxes shall be subject to the same interest penalties and other rules imposed 41.3under Minnesota Statutes, chapter 297A. The commissioner of revenue may enter into 41.4appropriate agreements with the city to provide for collection of these taxes by the state 41.5on behalf of the city. The commissioner may charge the city a reasonable fee for its 41.6collection from the proceeds of any taxes, as provided in Minnesota Statutes, section 41.7297A.99, subdivision 9.41.8    (b) A taxpayer located outside of the city of Minneapolis who collects use tax under 41.9this section in an amount that does not exceed $10 in a reporting period is not required to 41.10remit that tax until the amount of use tax collected is $10.41.11    Subd. 3. Use of property. Revenues received from the tax may only be used:41.12    (1) to pay costs of collection;41.13    (2) (1) to pay or secure the payment of any principal of, premium or interest on 41.14bonds issued in accordance with this act;41.15    (3) (2) to pay costs to acquire, design, equip, construct, improve, maintain, operate, 41.16administer, or promote the convention center or related facilities, and other capital projects 41.17or economic developments under subdivision 4, including financing costs related to them;41.18    (4) (3) to pay reasonable and appropriate costs determined by the city to replace 41.19housing and the ice arena removed from the site; 41.20    (5) (4) to maintain reserves for the foregoing purposes deemed reasonable and 41.21appropriate by the city; and41.22(6) (5) to fund projects and for other purposes under subdivision 4.41.23    Money for replacement housing shall be made available by the city only for new 41.24construction, conversion of nonresidential buildings, and for rehabilitation of vacant 41.25residential structures, only if all of the units in the newly constructed building, converted 41.26nonresidential building, or rehabilitated residential structure are to be used for replacement 41.27housing.41.28    Subd. 4. Minneapolis downtown and neighborhood projects. (a) For revenues 41.29collected in calendar years 2009 and 2010, to the extent that revenues from the tax 41.30authorized in subdivision 1 exceeds the amount needed to fund the purposes in subdivision 41.313, the city may use the excess revenue to fund any city services. The total amount used in 41.32both years for this purpose may not exceed the total amount of aid and credit reductions 41.33under Minnesota Statutes, sections 
         273.1384 and 
         477A.011 to 
         477A.014 in calendar years 41.342008, 2009, and 2010 due to a governor's unallotment or due to statutory reductions.41.35(b) Beginning with revenues collected in calendar year 2011, to the extent that 41.36revenues from the tax taxes authorized in subdivision 1 exceeds or in section 5 exceed42.1the amount needed to fund the purposes in subdivision 3, the city may use the excess 42.2revenue in any year to fund capital projects to further residential, cultural, commercial, 42.3and economic development in both downtown Minneapolis and the Minneapolis 42.4neighborhoods, to fund other city expenditures in support of the capital projects, or 42.5for other economic development, provided the city may direct excess revenue first to 42.6convention center debt, operations, capital improvements, and marketing. The city may 42.7issue bonds to fund any such projects or improvements using these taxes or any other 42.8available city resources to finance or secure the bonds.42.9    Sec. 3. Laws 1986, chapter 396, section 5, as amended by Laws 2001, First Special 42.10Session chapter 5, article 12, section 87, is amended to read:42.11    Sec. 5. LIQUOR, LODGING, AND RESTAURANT TAXES.42.12    The city may, by resolution, levy in addition to taxes authorized by other law:42.13    (1) a sales tax of not more than three percent on the gross receipts on retail on-sales 42.14of intoxicating liquor and fermented malt beverages described in section 473.59242.15occurring in the when sold at licensed on-sale liquor establishments located within the42.16downtown taxing area, provided that this tax may not be imposed if sales of intoxicating 42.17liquor and fermented malt beverages are exempt from taxation under chapter 297A;42.18    (2) a sales tax of not more than three percent on the gross receipts from the furnishing 42.19for consideration of lodging described in section 473.592 for a period of less than 30 days 42.20at a hotel, motel, rooming house, tourist court, or trailer camp located within the city by a 42.21hotel or motel which has more than 50 rooms available for lodging; the tax imposed under 42.22this clause shall be at a rate that, when added to the sum of the rate of the sales tax imposed 42.23under Minnesota Statutes, chapter 297A, the rate of the sales tax imposed under section 4, 42.24and the rate of any other taxes on lodging in the city of Minneapolis, equals 13 percent; and42.25    (3) a sales tax of not more than three percent on the gross receipts on all sales of food 42.26primarily for consumption on or off the premises by restaurants and places of refreshment 42.27as defined by resolution of the city that occur within the downtown taxing area.42.28The taxes authorized by this section shall be imposed until January 1, 2047. The taxes 42.29may be further imposed through December 31, 2050, by order of the commissioner of 42.30management and budget, under the authority granted under article 7, section 1. The taxes 42.31shall be imposed and may be adjusted periodically by the city council such that the rates 42.32imposed, produce revenue sufficient, together with the tax imposed under section 4, to 42.33finance the purposes described in section 4, subdivisions 3 and 4. These taxes shall be 42.34applied, first, as provided in Minnesota Statutes, section 297A.994, subdivision 3, clauses 42.35(1) to (3), and then, solely to pay costs of collection and to pay or, secure, maintain, and 43.1fund the payment of any principal of, premium on, and interest on any bonds or any 43.2costs referred to other purposes in section 4, subdivision 3 or 4. The commissioner of 43.3revenue may enter into appropriate agreements with the city to provide for the collection 43.4of these taxes by the state on behalf of the city. The commissioner may charge the city 43.5a reasonable fee for its collection from the proceeds of any taxes. These taxes shall be 43.6subject to the same interest penalties and enforcement provisions as the taxes imposed 43.7under section 473.592 Minnesota Statutes, chapter 297A.43.8    Sec. 4. EFFECTIVE DATE; LOCAL APPROVAL.43.9This article is effective the day after the governing body of the city of Minneapolis 43.10and its chief clerical officer comply with Minnesota Statutes, section 645.021, subdivisions 43.112 and 3. Notwithstanding any law to the contrary, the city of Minneapolis and its chief 43.12clerical officer have 30 calendar days following final enactment of this act, to comply with 43.13Minnesota Statutes, section 645.021, subdivisions 2 and 3.43.14    Sec. 5. SEVERABILITY; SAVINGS.43.15If any part of this article is found to be invalid because it is in conflict with a 43.16provision of the Minnesota Constitution or for any other reason, all other provisions of 43.17this article shall remain valid and any rights, remedies, and privileges that have been 43.18otherwise accrued by this article, shall remain in effect and may be proceeded with and 43.19concluded under the provisions of this article.43.20    Sec. 6.  LOCAL SALES TAX REQUIREMENTS NOT TO APPLY.43.21 The taxes authorized under Laws 1986, chapter 396, sections 4 and 5, as amended, 43.22are exempt from the requirements of Minnesota Statutes, section 297A.99, subdivisions 43.232 and 3.43.24ARTICLE 543.25LAWFUL GAMBLING43.26    Section 1. Minnesota Statutes 2010, section 297E.01, subdivision 7, is amended to read:43.27    Subd. 7. Gambling product. "Gambling product" means bingo hard cards, bingo 43.28paper sheets, or linked bingo paper sheets, or electronic linked bingo games; pull-tabs; 43.29electronic pull-tab games; tipboards; paddle tickets and paddle ticket cards; raffle tickets; 43.30or any other ticket, card, board, placard, device, or token that represents a chance, for 43.31which consideration is paid, to win a prize.44.1EFFECTIVE DATE.This section is effective July 1, 2012.44.2    Sec. 2. Minnesota Statutes 2010, section 297E.01, subdivision 8, is amended to read:44.3    Subd. 8. Gross receipts. "Gross receipts" means all receipts derived from lawful 44.4gambling activity including, but not limited to, the following items:44.5(1) gross sales of bingo hard cards and, paper sheets, linked bingo paper sheets, and 44.6electronic linked bingo games before reduction for prizes, expenses, shortages, free plays, 44.7or any other charges or offsets;44.8(2) the ideal gross of pull-tab, electronic pull-tab games, and tipboard deals or games 44.9less the value of unsold and defective tickets and before reduction for prizes, expenses, 44.10shortages, free plays, or any other charges or offsets;44.11(3) gross sales of raffle tickets and paddle tickets before reduction for prizes, 44.12expenses, shortages, free plays, or any other charges or offsets;44.13(4) admission, commission, cover, or other charges imposed on participants in 44.14lawful gambling activity as a condition for or cost of participation; and44.15(5) interest, dividends, annuities, profit from transactions, or other income derived 44.16from the accumulation or use of gambling proceeds.44.17Gross receipts does not include proceeds from rental under section 
         349.18, 44.18subdivision 3
         .44.19EFFECTIVE DATE.This section is effective July 1, 2012.44.20    Sec. 3. Minnesota Statutes 2010, section 297E.01, subdivision 9, is amended to read:44.21    Subd. 9. Ideal gross. "Ideal gross" means the total amount of receipts that would be 44.22received if every individual ticket in the pull-tab, electronic pull-tab games or tipboard 44.23deal, paddle wheel game, and raffle ticket was sold at its face value. In the calculation 44.24of ideal gross and prizes, a free play ticket pull-tab or electronic pull-tab shall be valued 44.25at face value. Ideal gross also means the total amount of receipts that would be received 44.26if every bingo paper sheet, linked bingo paper sheet, and electronic linked bingo games 44.27were sold at face value.44.28EFFECTIVE DATE.This section is effective July 1, 2012.44.29    Sec. 4. Minnesota Statutes 2010, section 297E.02, subdivision 1, is amended to read:44.30    Subdivision 1. Imposition. A tax is imposed on all lawful gambling other than (1) 44.31paper or electronic pull-tab deals or games; (2) tipboard deals or games; and (3) electronic 44.32linked bingo; and (4) items listed in section 
         297E.01, subdivision 8, clauses (4) and (5), at 45.1the rate of 8.5 percent on the gross receipts as defined in section 
         297E.01, subdivision 8, 45.2less prizes actually paid. The tax imposed by this subdivision is in lieu of the tax imposed 45.3by section 
         297A.62 and all local taxes and license fees except a fee authorized under 45.4section 
         349.16, subdivision 8, or a tax authorized under subdivision 5.45.5The tax imposed under this subdivision is payable by the organization or party 45.6conducting, directly or indirectly, the gambling.45.7EFFECTIVE DATE.This section is effective for games reported as played after 45.8June 30, 2012.45.9    Sec. 5. Minnesota Statutes 2010, section 297E.02, subdivision 3, is amended to read:45.10    Subd. 3. Collection; disposition.(a) Taxes imposed by this section other than in 45.11subdivision 4 are due and payable to the commissioner when the gambling tax return 45.12is required to be filed. Taxes imposed by subdivision 4 are due and payable to the 45.13commissioner on or before the last business day of the month following the month in 45.14which the taxable sale was made. Distributors must file their monthly sales figures with 45.15the commissioner on a form prescribed by the commissioner. Returns covering the taxes 45.16imposed under this section must be filed with the commissioner on or before the 20th day 45.17of the month following the close of the previous calendar month. The commissioner 45.18may require that the returns be filed via magnetic media or electronic data transfer. The 45.19proceeds, along with the revenue received from all license fees and other fees under 45.20sections 
         349.11 to 
         349.191, 
         349.211, and 
         349.213, must be paid to the commissioner of 45.21management and budget for deposit in the general fund.45.22(b) The sales tax imposed by chapter 297A on the sale of pull-tabs and tipboards by 45.23the distributor is imposed on the retail sales price. The retail sale of pull-tabs or tipboards 45.24by the organization is exempt from taxes imposed by chapter 297A and is exempt from all 45.25local taxes and license fees except a fee authorized under section 349.16, subdivision 8.45.26(c) One-half of one percent of the revenue deposited in the general fund under 45.27paragraph (a), is appropriated to the commissioner of human services for the compulsive 45.28gambling treatment program established under section 245.98. One-half of one percent 45.29of the revenue deposited in the general fund under paragraph (a), is appropriated to 45.30the commissioner of human services for a grant to the state affiliate recognized by 45.31the National Council on Problem Gambling to increase public awareness of problem 45.32gambling, education and training for individuals and organizations providing effective 45.33treatment services to problem gamblers and their families, and research relating to problem 45.34gambling. Money appropriated by this paragraph must supplement and must not replace 45.35existing state funding for these programs.46.1EFFECTIVE DATE.This section is effective July 1, 2012.46.2    Sec. 6. Minnesota Statutes 2010, section 297E.02, subdivision 6, is amended to read:46.3    Subd. 6. Combined net receipts tax. In addition to the taxes imposed under 46.4subdivisions 1 and 4, a tax is imposed on the combined receipts of the organization. As 46.5used in this section, "combined net receipts" is the sum of the organization's gross receipts 46.6from lawful gambling less gross receipts directly derived from the conduct of paper bingo, 46.7raffles, and paddle wheels, as defined in section 
         297E.01, subdivision 8, and less the net 46.8prizes actually paid, other than prizes actually paid for paper bingo, raffles, and paddle 46.9wheels, for the fiscal year. The combined net receipts of an organization are subject to a 46.10tax computed according to the following schedule:

46.1146.1246.13If the combined net 
                  		receipts for the fiscal year 
                  		are:The tax is:46.14Not over $500,000$87,500zero6.89 percent46.1546.1646.17Over $500,000$87,500, 
                  		but not over $700,000$122,5001.7$6,029 plus 13.78 percent of the 
                  		amount over $500,000$87,500, but 
                  		not over $700,000$122,50046.1846.1946.2046.21Over $700,000$122,500, 
                  		but not over $900,000$157,500$3,400$10,852 plus 3.420.67
                  		percent of the amount over $700,000$122,500, but not over $900,000$157,50046.2246.2346.24Over $900,000$157,500$10,200$18,086 plus 5.127.56
                  		percent of the amount over $900,000$157,500

46.25EFFECTIVE DATE.This section is effective July 1, 2012.46.26    Sec. 7. Minnesota Statutes 2010, section 297E.02, is amended by adding a subdivision 46.27to read:46.28    Subd. 6a.Unaccounted games.If a licensed distributor cannot account for a 46.29pull-tab game, an electronic pull-tab game, a tipboard deal, paddletickets, an electronic 46.30linked bingo game, bingo paper sheets, or linked bingo paper sheets, the distributor must 46.31report the sheets or games to the commissioner as lost and remit a tax of six percent 46.32on the ideal gross of the sheets or games.46.33EFFECTIVE DATE.This section is effective July 1, 2012.46.34    Sec. 8. Minnesota Statutes 2010, section 297E.02, subdivision 7, is amended to read:46.35    Subd. 7. Untaxed gambling product. (a) In addition to penalties or criminal 46.36sanctions imposed by this chapter, a person, organization, or business entity possessing or 47.1selling a pull-tab, electronic pull-tab game or tipboard upon which the tax imposed by 47.2subdivision 4 this chapter has not been paid is liable for a tax of six percent of the ideal 47.3gross of each pull-tab, electronic pull-tab game,  or tipboard. The tax on a partial deal 47.4must be assessed as if it were a full deal.47.5(b) In addition to penalties and criminal sanctions imposed by this chapter, a person 47.6not licensed by the board who conducts bingo, linked bingo, electronic linked bingo, 47.7raffles, or paddle wheel games is liable for a tax of six percent of the gross receipts 47.8from that activity.47.9(c) The tax must be assessed by the commissioner. An assessment must be 47.10considered a jeopardy assessment or jeopardy collection as provided in section 
         270C.36. 47.11The commissioner shall assess the tax based on personal knowledge or information 47.12available to the commissioner. The commissioner shall mail to the taxpayer at the 47.13taxpayer's last known address, or serve in person, a written notice of the amount of tax, 47.14demand its immediate payment, and, if payment is not immediately made, collect the tax 47.15by any method described in chapter 270C, except that the commissioner need not await the 47.16expiration of the times specified in chapter 270C. The tax assessed by the commissioner 47.17is presumed to be valid and correctly determined and assessed. The burden is upon the 47.18taxpayer to show its incorrectness or invalidity. The tax imposed under this subdivision 47.19does not apply to gambling that is exempt from taxation under subdivision 2.47.20EFFECTIVE DATE.This section is effective July 1, 2012.47.21    Sec. 9. Minnesota Statutes 2010, section 297E.02, subdivision 10, is amended to read:47.22    Subd. 10. Refunds; appropriation. A person who has, under this chapter, paid 47.23to the commissioner an amount of tax for a period in excess of the amount legally due 47.24for that period, may file with the commissioner a claim for a refund of the excess. The 47.25amount necessary to pay the refunds under this subdivision and subdivision 4, paragraph 47.26(d), is appropriated from the general fund to the commissioner.47.27EFFECTIVE DATE.This section is effective July 1, 2012.47.28    Sec. 10. Minnesota Statutes 2010, section 297E.02, subdivision 11, is amended to read:47.29    Subd. 11. Unplayed or Defective pull-tabs or tipboards gambling products.If a 47.30deal of pull-tabs or tipboards registered with the board or bar coded in accordance with this 47.31chapter and chapter 349 and upon which the tax imposed by subdivision 4 has been paid is 47.32returned unplayed to the distributor, the commissioner shall allow a refund of the tax paid.48.1If a defective deal registered with the board or bar coded in accordance with this 48.2chapter and chapter 349 and upon which the taxes have been paid is returned to the 48.3manufacturer, the distributor shall submit to the commissioner of revenue certification 48.4from the manufacturer that the deal was returned and in what respect it was defective. 48.5The certification must be on a form prescribed by the commissioner and must contain 48.6additional information the commissioner requires.48.7The commissioner may require that no refund under this subdivision be made 48.8unless the that all defective and returned pull-tabs or, tipboards have been, paddle tickets, 48.9paper bingo sheets, and linked bingo paper sheets be set aside for inspection by the 48.10commissioner's employee.48.11Reductions in previously paid taxes authorized by this subdivision must be made 48.12when and in the manner prescribed by the commissioner.48.13EFFECTIVE DATE.This section is effective for games sold by a licensed 48.14distributor after June 30, 2012.48.15    Sec. 11. Minnesota Statutes 2010, section 297E.13, subdivision 5, is amended to read:48.16    Subd. 5. Untaxed gambling equipment. It is a gross misdemeanor for a person to 48.17possess gambling equipment for resale in this state that has not been stamped or bar-coded 48.18in accordance with this chapter and chapter 349 and upon which the taxes imposed by 48.19chapter 297A or section 
         297E.02, subdivision 4, have not been paid. The director of 48.20alcohol and gambling enforcement or the commissioner or the designated inspectors 48.21and employees of the director or commissioner may seize in the name of the state of 48.22Minnesota any unregistered or untaxed gambling equipment.48.23EFFECTIVE DATE.This section is effective for actions occurring after June 48.2430, 2012.48.25    Sec. 12. Minnesota Statutes 2010, section 349.12, subdivision 3b, is amended to read:48.26    Subd. 3b. Bar operation. "Bar operation" means a method of selling and redeeming 48.27disposable gambling equipment by an employee of the lessor within a leased premises 48.28which is licensed for the on-sale of alcoholic beverages where such sales and redemptions 48.29are made by an employee of the lessor from a common area where food and beverages 48.30are also sold.48.31    Sec. 13. Minnesota Statutes 2010, section 349.12, subdivision 3c, is amended to read:49.1    Subd. 3c. Bar bingo. "Bar bingo" is a bingo occasion conducted at a permitted 49.2premises in an area where intoxicating liquor or 3.2 percent malt beverages are sold and 49.3where the licensed organization conducts another form of lawful gambling. Bar bingo 49.4does not include bingo games linked to other permitted premises.49.5    Sec. 14. Minnesota Statutes 2010, section 349.12, subdivision 5, is amended to read:49.6    Subd. 5. Bingo occasion. "Bingo occasion" means a single gathering or session at 49.7which a series of one or more successive bingo games is played. There is no limit on the 49.8number of games conducted during a bingo occasion but. A bingo occasion must not last 49.9longer than eight consecutive hours., except that linked bingo games played on electronic 49.10bingo devices may be played during regular business hours of the permitted premises, 49.11and all play during this period is considered a bingo occasion for reporting purposes. For 49.12permitted premises where the primary business is bingo, regular business hours shall be 49.13defined as the hours between 8:00 a.m. and 2:00 a.m.49.14    Sec. 15. Minnesota Statutes 2010, section 349.12, subdivision 6a, is amended to read:49.15    Subd. 6a. Booth operation. "Booth operation" means a method of selling and 49.16redeeming disposable gambling equipment by an employee of a licensed organization in 49.17a premises the organization leases or owns where such sales and redemptions are made 49.18within a separate enclosure that is distinct from areas where food and beverages are sold.49.19    Sec. 16. Minnesota Statutes 2010, section 349.12, subdivision 12a, is amended to read:49.20    Subd. 12a. Electronic bingo device. "Electronic bingo device" means an a 49.21handheld and portable electronic device that:49.22(a) is used by a bingo player to:49.23(1) monitor bingo paper sheets or a facsimile of a bingo paper sheet when purchased 49.24and played at the time and place of an organization's bingo occasion and which (1) 49.25provides a means for bingo players to, or to play an electronic bingo game that is linked 49.26with other permitted premises;49.27(2) activate numbers announced by a bingo caller; (2) compares or displayed, and 49.28to compare the numbers entered by the player to the bingo faces previously stored in 49.29the memory of the device; and 49.30(3) identifies identify a winning bingo pattern. or game requirement; and49.31(4) play against other bingo players;49.32(b) limits the play of bingo faces to 36 faces per game;50.1(c) requires coded entry to activate play but does not allow the use of a coin, 50.2currency, or tokens to be inserted to activate play;50.3(d) may only be used for play against other bingo players in a bingo game;50.4(e) has no additional function as an amusement or gambling device other than as an 50.5electronic pull-tab game defined under section 349.12, subdivision 12c;50.6(f) has the capability to ensure adequate levels of security internal controls;50.7(g) has the capability to permit the board to electronically monitor the operation of 50.8the device and the internal accounting systems; and50.9(h) has the capability to allow use by a player who is visually impaired.50.10Electronic bingo device does not mean any device into which coin, currency, or tokens are 50.11inserted to activate play.50.12    Sec. 17. Minnesota Statutes 2010, section 349.12, is amended by adding a subdivision 50.13to read:50.14    Subd. 12b.Electronic pull-tab device."Electronic pull-tab device" means a 50.15handheld and portable electronic device that:50.16(a) is used to play one or more electronic pull-tab games;50.17(b) requires coded entry to activate play but does not allow the use of coin, currency, 50.18or tokens to be inserted to activate play; 50.19(c) requires that a player must activate or open each electronic pull-tab ticket and 50.20each individual line, row, or column of each electronic pull-tab ticket; 50.21(d) maintains information pertaining to accumulated win credits that may be applied 50.22to games in play or redeemed upon termination of play;50.23(e) has no spinning symbols or other representations that mimic a video slot machine;50.24(f) has no additional function as a gambling device other than as an electronic linked 50.25bingo game played on a device defined under section 349.12, subdivision 12a;50.26(g) may incorporate an amusement game feature as part of the pull-tab game but 50.27may not require additional consideration for that feature or award any prize, or other 50.28benefit for that feature;50.29(h) may have auditory or visual enhancements to promote or provide information 50.30about the game being played, provided the component does not affect the outcome of 50.31a game or display the results of a game;50.32(i) maintains, on nonresettable meters, a printable, permanent record of all 50.33transactions involving each device electronic pull-tab games played on the device;50.34(j) is not a pull-tab dispensing device as defined under subdivision 32a; and50.35(k) has the capability to allow use by a player who is visually impaired.51.1    Sec. 18. Minnesota Statutes 2010, section 349.12, is amended by adding a subdivision 51.2to read:51.3    Subd. 12c.Electronic pull-tab game."Electronic pull-tab game" means a pull-tab 51.4game containing:51.5(a) facsimiles of pull-tab tickets that are played on an electronic pull-tab device;51.6(b) a predetermined, finite number of winning and losing tickets, not to exceed 51.77,500 tickets;51.8(c) the same price for each ticket in the game;51.9(d) a price paid by the player of not less than 25 cents per ticket;51.10(e) tickets that are in conformance with applicable board rules for pull-tabs;51.11(f) winning tickets that comply with prize limits under section 349.211;51.12(g) a unique serial number that may not be regenerated;51.13(h) an electronic flare that displays the game name, form number, predetermined, 51.14finite number of tickets in the game, and prize tier; and51.15(i) no spinning symbols or other representations that mimic a video slot machine.51.16    Sec. 19. Minnesota Statutes 2010, section 349.12, is amended by adding a subdivision 51.17to read:51.18    Subd. 12d.Electronic pull-tab game system."Electronic pull-tab game system" 51.19means the equipment leased from a licensed distributor and used by a licensed organization 51.20to conduct, manage, and record electronic pull-tab games, and to report and transmit the 51.21game results as prescribed by the board and the Department of Revenue. The system must 51.22provide security and access levels sufficient so that internal control objectives are met as 51.23prescribed by the board. The system must contain a point of sale station.51.24    Sec. 20. Minnesota Statutes 2010, section 349.12, subdivision 18, is amended to read:51.25    Subd. 18. Gambling equipment. "Gambling equipment" means: gambling 51.26equipment that is either disposable or permanent gambling equipment. 51.27(a) Disposable gambling equipment includes the following:51.28(1) bingo hard cards or paper sheets, including linked bingo paper sheets, devices for 51.29selecting bingo numbers, electronic bingo devices,;51.30(2) paper and electronic pull-tabs,;51.31(3) jar tickets, paddle wheels, paddle wheel tables,;51.32(4) paddle tickets, and paddle ticket cards,;51.33(5) tipboards, and tipboard tickets,; and52.1(6) promotional tickets that mimic a pull-tab or tipboard, pull-tab dispensing devices, 52.2and programmable electronic devices that have no effect on the outcome of a game and 52.3are used to provide a visual or auditory enhancement of a game.52.4(b) Permanent gambling equipment includes the following:52.5(1) devices for selecting bingo numbers;52.6(2) electronic bingo devices;52.7(3) electronic pull-tab devices;52.8(4) pull-tab dispensing devices;52.9(5) programmable electronic devices that have no effect on the outcome of a game 52.10and are used to provide a visual or auditory enhancement of a game;52.11(6) paddle wheels; and52.12(7) paddle wheel tables.52.13    Sec. 21. Minnesota Statutes 2010, section 349.12, subdivision 25, is amended to read:52.14    Subd. 25. Lawful purpose. (a) "Lawful purpose" means one or more of the 52.15following:52.16    (1) any expenditure by or contribution to a 501(c)(3) or festival organization, as 52.17defined in subdivision 15a, provided that the organization and expenditure or contribution 52.18are in conformity with standards prescribed by the board under section 
         349.154, which 52.19standards must apply to both types of organizations in the same manner and to the same 52.20extent;52.21    (2) a contribution to or expenditure for goods and services for an individual or 52.22family suffering from poverty, homelessness, or disability, which is used to relieve the 52.23effects of that suffering;52.24    (3) a contribution to a program recognized by the Minnesota Department of Human 52.25Services for the education, prevention, or treatment of problem gambling;52.26    (4) a contribution to or expenditure on a public or private nonprofit educational 52.27institution registered with or accredited by this state or any other state;52.28    (5) a contribution to an individual, public or private nonprofit educational institution 52.29registered with or accredited by this state or any other state, or to a scholarship fund of a 52.30nonprofit organization whose primary mission is to award scholarships, for defraying the 52.31cost of education to individuals where the funds are awarded through an open and fair 52.32selection process;52.33    (6) activities by an organization or a government entity which recognize military 52.34service to the United States, the state of Minnesota, or a community, subject to rules 52.35of the board, provided that the rules must not include mileage reimbursements in the 53.1computation of the per diem reimbursement limit and must impose no aggregate annual 53.2limit on the amount of reasonable and necessary expenditures made to support:53.3    (i) members of a military marching or color guard unit for activities conducted 53.4within the state;53.5    (ii) members of an organization solely for services performed by the members at 53.6funeral services;53.7    (iii) members of military marching, color guard, or honor guard units may be 53.8reimbursed for participating in color guard, honor guard, or marching unit events within 53.9the state or states contiguous to Minnesota at a per participant rate of up to $35 per diem; or53.10    (iv) active military personnel and their immediate family members in need of 53.11support services;53.12    (7) recreational, community, and athletic facilities and activities intended primarily 53.13for persons under age 21, provided that such facilities and activities do not discriminate on 53.14the basis of gender and the organization complies with section 
         349.154, subdivision 3a;53.15    (8) payment of local taxes authorized under this chapter, taxes imposed by the 53.16United States on receipts from lawful gambling, the taxes imposed by section 
         297E.02, 53.17subdivisions 1, 4, 5, and 6, and the tax imposed on unrelated business income by section 53.18290.05, subdivision 3
         ;53.19    (9) payment of real estate taxes and assessments on permitted gambling premises 53.20owned by the licensed organization paying the taxes, or wholly leased by a licensed 53.21veterans organization under a national charter recognized under section 501(c)(19) of the 53.22Internal Revenue Code;53.23    (10) a contribution to the United States, this state or any of its political subdivisions, 53.24or any agency or instrumentality thereof other than a direct contribution to a law 53.25enforcement or prosecutorial agency;53.26    (11) a contribution to or expenditure by a nonprofit organization which is a church 53.27or body of communicants gathered in common membership for mutual support and 53.28edification in piety, worship, or religious observances;53.29    (12) an expenditure for citizen monitoring of surface water quality by individuals 53.30or nongovernmental organizations that is consistent with section 
         115.06, subdivision 4, 53.31and Minnesota Pollution Control Agency guidance on monitoring procedures, quality 53.32assurance protocols, and data management, provided that the resulting data is submitted 53.33to the Minnesota Pollution Control Agency for review and inclusion in the state water 53.34quality database;53.35    (13) a contribution to or expenditure on projects or activities approved by the 53.36commissioner of natural resources for:54.1    (i) wildlife management projects that benefit the public at large;54.2    (ii) grant-in-aid trail maintenance and grooming established under sections 
         84.83 54.3and 
         84.927, and other trails open to public use, including purchase or lease of equipment 54.4for this purpose; and54.5    (iii) supplies and materials for safety training and educational programs coordinated 54.6by the Department of Natural Resources, including the Enforcement Division;54.7    (14) conducting nutritional programs, food shelves, and congregate dining programs 54.8primarily for persons who are age 62 or older or disabled;54.9    (15) a contribution to a community arts organization, or an expenditure to sponsor 54.10arts programs in the community, including but not limited to visual, literary, performing, 54.11or musical arts;54.12    (16) an expenditure by a licensed fraternal organization or a licensed veterans 54.13organization for payment of water, fuel for heating, electricity, and sewer costs for:54.14    (i) up to 100 percent for a building wholly owned or wholly leased by and used as 54.15the primary headquarters of the licensed veteran or fraternal organization; or54.16    (ii) a proportional amount subject to approval by the director and based on the 54.17portion of a building used as the primary headquarters of the licensed veteran or fraternal 54.18organization;54.19    (17) expenditure by a licensed veterans organization of up to $5,000 in a calendar 54.20year in net costs to the organization for meals and other membership events, limited to 54.21members and spouses, held in recognition of military service. No more than $5,000 can be 54.22expended in total per calendar year under this clause by all licensed veterans organizations 54.23sharing the same veterans post home;54.24    (18) payment of fees authorized under this chapter imposed by the state of Minnesota 54.25to conduct lawful gambling in Minnesota;54.26    (19) a contribution or expenditure to honor an individual's humanitarian service 54.27as demonstrated through philanthropy or volunteerism to the United States, this state, 54.28or local community;54.29    (20) a contribution by a licensed organization to another licensed organization with 54.30prior board approval, with the contribution designated to be used for one or more of the 54.31following lawful purposes under this section: clauses (1) to (7), (11) to (15), (19), and (25);54.32    (21) an expenditure that is a contribution to a parent organization, if the parent 54.33organization: (i) has not provided to the contributing organization within one year of the 54.34contribution any money, grants, property, or other thing of value, and (ii) has received 54.35prior board approval for the contribution that will be used for a program that meets one or 54.36more of the lawful purposes under subdivision 7a;55.1    (22) an expenditure for the repair, maintenance, or improvement of real property 55.2and capital assets owned by an organization, or for the replacement of a capital asset that 55.3can no longer be repaired, with a fiscal year limit of five percent of gross profits from 55.4the previous fiscal year, with no carryforward of unused allowances. The fiscal year is 55.5July 1 through June 30. Total expenditures for the fiscal year may not exceed the limit 55.6unless the board has specifically approved the expenditures that exceed the limit due to 55.7extenuating circumstances beyond the organization's control. An expansion of a building 55.8or bar-related expenditures are not allowed under this provision.55.9    (i) The expenditure must be related to the portion of the real property or capital asset 55.10that must be made available for use free of any charge to other nonprofit organizations, 55.11community groups, or service groups, or is used for the organization's primary mission or 55.12headquarters.55.13    (ii) An expenditure may be made to bring an existing building that the organization 55.14owns into compliance with the Americans with Disabilities Act.55.15    (iii) An organization may apply the amount that is allowed under item (ii) to the 55.16erection or acquisition of a replacement building that is in compliance with the Americans 55.17with Disabilities Act if the board has specifically approved the amount. The cost of 55.18the erection or acquisition of a replacement building may not be made from gambling 55.19proceeds, except for the portion allowed under this item;55.20    (23) an expenditure for the acquisition or improvement of a capital asset with a cost 55.21greater than $2,000, excluding real property, that will be used exclusively for lawful 55.22purposes under this section if the board has specifically approved the amount;55.23    (24) an expenditure for the acquisition, erection, improvement, or expansion of real 55.24property, if the board has first specifically authorized the expenditure after finding that the 55.25real property will be used exclusively for lawful purpose under this section; or55.26    (25) an expenditure, including a mortgage payment or other debt service payment, 55.27for the erection or acquisition of a comparable building to replace an organization-owned 55.28building that was destroyed or made uninhabitable by fire or catastrophe or to replace an 55.29organization-owned building that was taken or sold under an eminent domain proceeding. 55.30The expenditure may be only for that part of the replacement cost not reimbursed by 55.31insurance for the fire or catastrophe or compensation not received from a governmental 55.32unit under the eminent domain proceeding, if the board has first specifically authorized 55.33the expenditure.55.34    (b) Expenditures authorized by the board under clauses (24) and (25) must be 55.3551 percent completed within two years of the date of board approval; otherwise the 55.36organization must reapply to the board for approval of the project. "Fifty-one percent 56.1completed" means that the work completed must represent at least 51 percent of the value 56.2of the project as documented by the contractor or vendor.56.3    (c) Notwithstanding paragraph (a), "lawful purpose" does not include:56.4    (1) any expenditure made or incurred for the purpose of influencing the nomination 56.5or election of a candidate for public office or for the purpose of promoting or defeating a 56.6ballot question;56.7    (2) any activity intended to influence an election or a governmental decision-making 56.8process;56.9    (3) a contribution to a statutory or home rule charter city, county, or town by a 56.10licensed organization with the knowledge that the governmental unit intends to use the 56.11contribution for a pension or retirement fund; or56.12    (4) a contribution to a 501(c)(3) organization or other entity with the intent or effect 56.13of not complying with lawful purpose restrictions or requirements.56.14EFFECTIVE DATE.This section is effective July 1, 2012.56.15    Sec. 22. Minnesota Statutes 2010, section 349.12, subdivision 25b, is amended to read:56.16    Subd. 25b. Linked bingo game provider. "Linked bingo game provider" means 56.17any person who provides the means to link bingo prizes in a linked bingo game, who 56.18provides linked bingo paper sheets to the participating organizations games, who provides 56.19linked bingo prize management, and who provides the linked bingo game system.56.20    Sec. 23. Minnesota Statutes 2010, section 349.12, subdivision 25c, is amended to read:56.21    Subd. 25c. Linked bingo game system. "Linked bingo game system" means the 56.22equipment used by the linked bingo provider to conduct, transmit, and track a linked 56.23bingo game. The system must be approved by the board before its use in this state and 56.24it must have dial-up or other the capability to permit the board to electronically monitor 56.25its operation remotely. For linked electronic bingo games, the system includes electronic 56.26bingo devices.56.27    Sec. 24. Minnesota Statutes 2010, section 349.12, subdivision 25d, is amended to read:56.28    Subd. 25d. Linked bingo prize pool. "Linked bingo prize pool" means the total 56.29of all prize money that each participating organization has contributed to a linked bingo 56.30game prize and includes any portion of the prize pool that is carried over from one 56.31occasion game to another in a progressive linked bingo game.56.32    Sec. 25. Minnesota Statutes 2010, section 349.12, subdivision 29, is amended to read:57.1    Subd. 29. Paddle wheel. "Paddle wheel" means a vertical wheel marked off into 57.2sections containing one or more numbers, and which, after being turned or spun, uses a 57.3pointer or marker to indicate winning chances, and may only be used to determine a 57.4winning number or numbers matching a winning paddle ticket purchased by a player. A 57.5paddle wheel may be an electronic device that simulates a paddle wheel.57.6    Sec. 26. Minnesota Statutes 2010, section 349.12, subdivision 31, is amended to read:57.7    Subd. 31. Promotional ticket. A paper pull-tab ticket or paper tipboard ticket 57.8created and printed by a licensed manufacturer with the words "no purchase necessary" and 57.9"for promotional use only" and for which no consideration is given is a promotional ticket.57.10    Sec. 27. Minnesota Statutes 2010, section 349.12, subdivision 32, is amended to read:57.11    Subd. 32. Pull-tab. "Pull-tab" means a single folded or banded paper ticket or a,57.12multi-ply card with perforated break-open tabs, or a facsimile of a paper pull-tab ticket 57.13used in conjunction with an electronic pull-tab device, the face of which is initially 57.14covered to conceal one or more numbers or symbols, and where one or more of each set of 57.15tickets or, cards, or facsimiles has been designated in advance as a winner.57.16    Sec. 28. Minnesota Statutes 2010, section 349.12, subdivision 34, is amended to read:57.17    Subd. 34. Tipboard. "Tipboard" means a board, placard or other device containing 57.18a seal that conceals the winning number or symbol, and that serves as the game flare for a 57.19tipboard game. A sports-themed tipboard is a board, placard, or other device that contains a 57.20grid of predesignated numbers for which the winning numbers are determined in whole or 57.21in part by the numerical outcome of one or more professional sporting events, serves as the 57.22game flare for player registration, but is not required to contain a seal. For a sports-themed 57.23tipboard, the winning numbers must be determined solely by the numerical outcome.57.24    Sec. 29. Minnesota Statutes 2010, section 349.12, subdivision 35, is amended to read:57.25    Subd. 35. Tipboard ticket. "Tipboard ticket" is a single folded or banded ticket, 57.26or multi-ply card, the face of which is initially covered or otherwise hidden from view 57.27to conceal a number, symbol, or set of symbols, some of which have been designated in 57.28advance and at random as prize winners. For a sports-themed tipboard, the tipboard ticket 57.29contains a set of numbers used to determine the winner based on the numerical outcome 57.30of a professional sporting event.58.1    Sec. 30. Minnesota Statutes 2010, section 349.13, is amended to read:58.2349.13 LAWFUL GAMBLING.58.3Lawful gambling is not a lottery or gambling within the meaning of sections 
         609.7558.4to 
         609.76 if it is conducted under this chapter. A pull-tab dispensing device, electronic 58.5bingo device, and electronic pull-tab device permitted under this chapter and by board 58.6rule is not a gambling device within the meaning of sections 
         609.75 to 
         609.76 and chapter 58.7299L. An electronic game device allowed under this chapter may not be a slot machine. 58.8Electronic game devices, including but not limited to electronic bingo devices, electronic 58.9paddle wheels, and electronic pull-tab devices authorized under this chapter, may only 58.10be used in the conduct of lawful gambling permitted under this chapter and board rule 58.11and may not display or simulate any other form of gambling or entertainment, except 58.12as otherwise allowed under this chapter. 58.13    Sec. 31. Minnesota Statutes 2010, section 349.151, subdivision 4b, is amended to read:58.14    Subd. 4b. Pull-tab sales from dispensing devices.(a) The board may by rule 58.15authorize but not require the use of pull-tab dispensing devices.58.16(b) Rules adopted under paragraph (a):58.17(1) must limit the number of pull-tab dispensing devices on any permitted premises 58.18to three; and58.19(2) must limit the use of pull-tab dispensing devices to a permitted premises which is 58.20(i) a licensed premises for on-sales of intoxicating liquor or 3.2 percent malt beverages; 58.21or (ii) a premises where bingo is conducted and admission is restricted to persons 18 58.22years or older.58.23(c) Notwithstanding rules adopted under paragraph (b), pull-tab dispensing devices 58.24may be used in establishments licensed for the off-sale of intoxicating liquor, other than 58.25drugstores and general food stores licensed under section 340A.405, subdivision 1.58.26    Sec. 32. Minnesota Statutes 2010, section 349.151, subdivision 4c, is amended to read:58.27    Subd. 4c. Electronic bingo devices. (a) The board may by rule authorize but not 58.28require the use of electronic bingo devices.58.29(b) Rules adopted under paragraph (a):58.30(1) must limit the number of bingo faces that can be played using an electronic 58.31bingo device to 36;58.32(2) must require that an electronic bingo device be used with corresponding bingo 58.33paper sheets or a facsimile, printed at the point of sale, as approved by the board;59.1(3) must require that the electronic bingo device site system have dial-up capability 59.2to permit the board to remotely monitor the operation of the device and the internal 59.3accounting systems; and59.4(4) must prohibit the price of a face played on an electronic bingo device from being 59.5less than the price of a face on a bingo paper sheet sold at the same occasion.59.6(b) The board, or the director if authorized by the board, may require the deactivation 59.7of an electronic bingo device for violation of a law or rule and to implement any other 59.8controls deemed necessary to ensure and maintain the integrity of electronic bingo devices 59.9and the electronic bingo games played on the devices.59.10    Sec. 33. Minnesota Statutes 2010, section 349.151, is amended by adding a subdivision 59.11to read:59.12    Subd. 4d.Electronic pull-tab devices and electronic pull-tab game system.(a) 59.13The board may adopt rules it deems necessary to ensure the integrity of electronic pull-tab 59.14devices, the electronic pull-tab games played on the devices, and the electronic pull-tab 59.15game system necessary to operate them.59.16(b) The board may not require an organization to use electronic pull-tab devices.59.17(c) Before authorizing the lease or sale of electronic pull-tab devices and the 59.18electronic pull-tab game system, the board shall examine electronic pull-tab devices 59.19allowed under section 349.12, subdivision 12b. The board may contract for the 59.20examination of the game system and electronic pull-tab devices and may require a working 59.21model to be transported to locations the board designates for testing, examination, and 59.22analysis. The manufacturer must pay all costs of any testing, examination, analysis, and 59.23transportation of the model. The system must be approved by the board before its use in 59.24the state and must have the capability to permit the board to electronically monitor its 59.25operation and internal accounting systems. 59.26(d) The board may require a manufacturer to submit a certificate from an independent 59.27testing laboratory approved by the board to perform testing services, stating that the 59.28equipment has been tested, analyzed, and meets the standards required in this chapter 59.29and any applicable board rules.59.30(e) The board, or the director if authorized by the board, may require the deactivation 59.31of an electronic pull-tab device for violation of a law or rule and to implement any other 59.32controls deemed necessary to ensure and maintain the integrity of electronic pull-tab 59.33devices and the electronic pull-tab games played on the devices.60.1    Sec. 34. Minnesota Statutes 2010, section 349.151, is amended by adding a subdivision 60.2to read:60.3    Subd. 4e.Sports-themed tipboard rules.The board may adopt rules for the 60.4conduct of tipboards for which the winning numbers are determined in whole or in part 60.5by the numerical outcome of one or more professional sporting events. The rules must 60.6provide for operation procedures, internal control standards, posted information, records, 60.7and reports. The rules must provide for the award of prizes, method of payout, wagers, 60.8determination of winners, and the specifications of these tipboards. 60.9    Sec. 35. Minnesota Statutes 2010, section 349.155, subdivision 3, is amended to read:60.10    Subd. 3. Mandatory disqualifications. (a) In the case of licenses for manufacturers, 60.11distributors, distributor salespersons, linked bingo game providers, and gambling 60.12managers, the board may not issue or renew a license under this chapter, and shall revoke 60.13a license under this chapter, if the applicant or licensee, or a director, officer, partner, 60.14governor, or person in a supervisory or management position of the applicant or licensee:60.15    (1) has ever been convicted of a felony or a crime involving gambling;60.16    (2) has ever been convicted of (i) assault, (ii) a criminal violation involving the use 60.17of a firearm, or (iii) making terroristic threats;60.18    (3) is or has ever been connected with or engaged in an illegal business;60.19    (4) owes $500 or more in delinquent taxes as defined in section 
         270C.72;60.20    (5) had a sales and use tax permit revoked by the commissioner of revenue within 60.21the past two years; or60.22    (6) after demand, has not filed tax returns required by the commissioner of revenue. 60.23The board may deny or refuse to renew a license under this chapter, and may revoke a 60.24license under this chapter, if any of the conditions in this paragraph are applicable to 60.25an affiliate or direct or indirect holder of more than a five percent financial interest in 60.26the applicant or licensee.60.27    (b) In the case of licenses for organizations, the board may not issue a license under 60.28this chapter, and shall revoke a license under this chapter, if the organization, or an officer 60.29or member of the governing body of the organization:60.30    (1) has been convicted of a felony or gross misdemeanor involving theft or fraud; or60.31    (2) has ever been convicted of a crime involving gambling; or.60.32    (3) has had a license issued by the board or director permanently revoked for 60.33violation of law or board rule.60.34    Sec. 36. Minnesota Statutes 2010, section 349.155, subdivision 4, is amended to read:61.1    Subd. 4. License revocation, suspension, denial; censure.(a) The board may by 61.2order (i) deny, suspend, revoke, or refuse to renew a license or premises permit, or (ii) 61.3censure a licensee or applicant, if it finds that the order is in the public interest and that the 61.4applicant or licensee, or a director, officer, partner, governor, person in a supervisory or 61.5management position of the applicant or licensee, an employee eligible to make sales on 61.6behalf of the applicant or licensee, or direct or indirect holder of more than a five percent 61.7financial interest in the applicant or licensee:61.8    (1) has violated or failed to comply with any provision of this chapter or chapter 61.9297E or 299L, or any rule adopted or order issued thereunder;61.10    (2) has filed an application for a license that is incomplete in any material respect, or 61.11contains a statement that, in light of the circumstances under which it was made, is false, 61.12misleading, fraudulent, or a misrepresentation;61.13    (3) has made a false statement in a document or report required to be submitted to 61.14the board or the commissioner of revenue, or has made a false statement to the board, the 61.15compliance review group, or the director;61.16    (4) has been convicted of a crime in another jurisdiction that would be a felony if 61.17committed in Minnesota;61.18    (5) is permanently or temporarily enjoined by any gambling regulatory agency from 61.19engaging in or continuing any conduct or practice involving any aspect of gambling;61.20    (6) has had a gambling-related license revoked or suspended, or has paid or been 61.21required to pay a monetary penalty of $2,500 or more, by a gambling regulator in another 61.22state or jurisdiction;61.23    (7) has been the subject of any of the following actions by the director of alcohol 61.24and gambling enforcement or commissioner of public safety: (i) had a license under 61.25chapter 299L denied, suspended, or revoked, (ii) been censured, reprimanded, has paid or 61.26been required to pay a monetary penalty or fine, or (iii) has been the subject of any other 61.27discipline by the director or commissioner;61.28    (8) has engaged in conduct that is contrary to the public health, welfare, or safety, or 61.29to the integrity of gambling; or61.30    (9) based on past activities or criminal record poses a threat to the public interest or 61.31to the effective regulation and control of gambling, or creates or enhances the dangers of 61.32unsuitable, unfair, or illegal practices, methods, and activities in the conduct of gambling 61.33or the carrying on of the business and financial arrangements incidental to the conduct of 61.34gambling.62.1    (b) The revocation or suspension of an organization's license may not exceed a 62.2period of ten years, including any revocation or suspension imposed by the board prior to 62.3the effective date of this paragraph, except that:62.4    (1) any prohibition placed by the board on who may be involved in the conduct, 62.5oversight, or management of the revoked organization's lawful gambling activity is 62.6permanent; and62.7    (2) a revocation or suspension will remain in effect until any taxes, fees, and fines 62.8that are delinquent have been paid by the organization to the satisfaction of the board.62.9    Sec. 37. Minnesota Statutes 2010, section 349.161, subdivision 1, is amended to read:62.10    Subdivision 1. Prohibited acts; licenses required. (a) No person may:62.11    (1) sell, offer for sale, or furnish gambling equipment for use within the state other 62.12than for lawful gambling exempt or excluded from licensing, except to an organization 62.13licensed for lawful gambling;62.14    (2) sell, offer for sale, or furnish gambling equipment for use within the state without 62.15having obtained a distributor license or a distributor salesperson license under this section 62.16except that an organization authorized to conduct bingo by the board may loan bingo 62.17hard cards and devices for selecting bingo numbers to another organization authorized to 62.18conduct bingo and a linked bingo game provider may provide electronic bingo devices for 62.19linked electronic bingo games;62.20    (3) sell, offer for sale, or furnish gambling equipment for use within the state that is 62.21not purchased or obtained from a manufacturer or distributor licensed under this chapter; or62.22    (4) sell, offer for sale, or furnish gambling equipment for use within the state that 62.23has the same serial number as another item of gambling equipment of the same type sold 62.24or offered for sale or furnished for use in the state by that distributor.62.25    (b) No licensed distributor salesperson may sell, offer for sale, or furnish gambling 62.26equipment for use within the state without being employed by a licensed distributor or 62.27owning a distributor license.62.28(c) No distributor or distributor salesperson may also be licensed as a linked bingo 62.29game provider under section 349.1635.62.30    Sec. 38. Minnesota Statutes 2010, section 349.161, subdivision 5, is amended to read:62.31    Subd. 5. Prohibition. (a) No distributor, distributor salesperson, or other employee 62.32of a distributor, may also be a wholesale distributor of alcoholic beverages or an employee 62.33of a wholesale distributor of alcoholic beverages.63.1    (b) No distributor, distributor salesperson, or any representative, agent, affiliate, or 63.2other employee of a distributor, may: (1) be involved in the conduct of lawful gambling 63.3by an organization; (2) keep or assist in the keeping of an organization's financial records, 63.4accounts, and inventories; or (3) prepare or assist in the preparation of tax forms and other 63.5reporting forms required to be submitted to the state by an organization.63.6    (c) No distributor, distributor salesperson, or any representative, agent, affiliate, 63.7or other employee of a distributor may provide a lessor of gambling premises any 63.8compensation, gift, gratuity, premium, or other thing of value.63.9    (d) No distributor, distributor salesperson, or any representative, agent, affiliate, or 63.10other employee of a distributor may provide an employee or agent of the organization 63.11any compensation, gift, gratuity, premium, or other thing of value greater than $25 per 63.12organization in a calendar year.63.13    (e) No distributor, distributor salesperson, or any representative, agent, affiliate, or 63.14other employee of a distributor may participate in any gambling activity at any gambling 63.15site or premises where gambling equipment purchased or leased from that distributor or 63.16distributor salesperson is being used in the conduct of lawful gambling.63.17    (f) No distributor, distributor salesperson, or any representative, agent, affiliate, or 63.18other employee of a distributor may alter or modify any gambling equipment, except to 63.19add a "last ticket sold" prize sticker for a paper pull-tab game.63.20    (g) No distributor, distributor salesperson, or any representative, agent, affiliate, or 63.21other employee of a distributor may: (1) recruit a person to become a gambling manager 63.22of an organization or identify to an organization a person as a candidate to become 63.23gambling manager for the organization; or (2) identify for an organization a potential 63.24gambling location.63.25    (h) No distributor or distributor salesperson may purchase or lease gambling 63.26equipment for resale or lease to a person for use within the state from any person not 63.27licensed as a manufacturer under section 
         349.163, except for gambling equipment 63.28returned from an organization licensed under section 
         349.16, or exempt or excluded from 63.29licensing under section 
         349.166.63.30    (i) No distributor or distributor salesperson may sell gambling equipment, except 63.31gambling equipment identified as a promotional ticket, to any person for use in Minnesota 63.32other than (i) a licensed organization or organization excluded or exempt from licensing, 63.33or (ii) the governing body of an Indian tribe.63.34    (j) No distributor or distributor salesperson may sell or otherwise provide a paper63.35pull-tab or tipboard deal with the symbol required by section 
         349.163, subdivision 5, 64.1paragraph (d), visible on the flare to any person other than in Minnesota to a licensed 64.2organization or organization exempt from licensing.64.3    Sec. 39. Minnesota Statutes 2010, section 349.162, subdivision 5, is amended to read:64.4    Subd. 5. Sales from facilities. (a) All gambling equipment purchased or possessed 64.5by a licensed distributor for resale or lease to any person for use in Minnesota must, prior 64.6to the equipment's resale or lease, be unloaded into a storage facility located in Minnesota 64.7which the distributor owns or leases; and which has been registered, in advance and in 64.8writing, with the Division of Alcohol and Gambling Enforcement as a storage facility of 64.9the distributor. All unregistered gambling equipment and all unaffixed registration stamps 64.10owned by, or in the possession of, a licensed distributor in the state of Minnesota shall be 64.11stored at a storage facility which has been registered with the Division of Alcohol and 64.12Gambling Enforcement. No gambling equipment may be moved from the facility unless 64.13the gambling equipment has been first registered with the board or the Department of 64.14Revenue. A distributor must notify the board of the method that it will use to sell and 64.15transfer electronic pull-tab games to licensed organizations, and must receive approval of 64.16the board before implementing or making changes to the approved method.64.17(b) Notwithstanding section 
         349.163, subdivisions 5, 6, and 8, a licensed 64.18manufacturer may ship into Minnesota approved or unapproved gambling equipment if the 64.19licensed manufacturer ships the gambling equipment to a Minnesota storage facility that 64.20is: (1) owned or leased by the licensed manufacturer; and (2) registered, in advance and 64.21in writing, with the Division of Alcohol and Gambling Enforcement as a manufacturer's 64.22storage facility. No gambling equipment may be shipped into Minnesota to the 64.23manufacturer's registered storage facility unless the shipment of the gambling equipment 64.24is reported to the Department of Revenue in a manner prescribed by the department. 64.25No gambling equipment may be moved from the storage facility unless the gambling 64.26equipment is sold to a licensed distributor and is otherwise in conformity with this chapter, 64.27is shipped to an out-of-state site and the shipment is reported to the Department of 64.28Revenue in a manner prescribed by the department, or is otherwise sold and shipped as 64.29permitted by board rule. A manufacturer must notify the board of the method that it will 64.30use to sell and transfer electronic pull-tab games to licensed distributors, and must receive 64.31approval of the board before implementing or making changes to the approved method.64.32(c) All storage facilities owned, leased, used, or operated by a licensed distributor 64.33or manufacturer may be entered upon and inspected by the employees of the Division of 64.34Alcohol and Gambling Enforcement, the Division of Alcohol and Gambling Enforcement 64.35director's authorized representatives, employees of the Gambling Control Board or its 65.1authorized representatives, employees of the Department of Revenue, or authorized 65.2representatives of the director of the Division of Special Taxes of the Department of 65.3Revenue during reasonable and regular business hours. Obstruction of, or failure to 65.4permit, entry and inspection is cause for revocation or suspension of a manufacturer's or 65.5distributor's licenses and permits issued under this chapter.65.6(d) Unregistered gambling equipment found at any location in Minnesota other than 65.7the manufacturing plant of a licensed manufacturer or a registered storage facility are 65.8contraband under section 
         349.2125. This paragraph does not apply:65.9(1) to unregistered gambling equipment being transported in interstate commerce 65.10between locations outside this state, if the interstate shipment is verified by a bill of lading 65.11or other valid shipping document; and65.12(2) to gambling equipment registered with the Department of Revenue for 65.13distribution to the tribal casinos.65.14    Sec. 40. Minnesota Statutes 2010, section 349.163, subdivision 1, is amended to read:65.15    Subdivision 1. License required. No manufacturer of gambling equipment may 65.16sell any gambling equipment to any person for use or resale within the state, unless the 65.17manufacturer has a current and valid license issued by the board under this section and has 65.18satisfied other criteria prescribed by the board by rule. A manufacturer licensed under this 65.19section may also be licensed as a linked bingo game provider under section 349.1635. 65.20A manufacturer licensed under this section may not also be directly or indirectly 65.21licensed as a distributor under section 
         349.161.65.22    Sec. 41. Minnesota Statutes 2010, section 349.163, subdivision 5, is amended to read:65.23    Subd. 5. Paper pull-tab and tipboard flares. (a) A manufacturer may not ship or 65.24cause to be shipped into this state or sell for use or resale in this state any deal of paper65.25pull-tabs or tipboards that does not have its own individual flare as required for that deal 65.26by this subdivision and rule of the board. A person other than a manufacturer may not 65.27manufacture, alter, modify, or otherwise change a flare for a deal of paper pull-tabs or 65.28tipboards except as allowed by this chapter or board rules.65.29(b) The flare of each paper pull-tab and tipboard game must have affixed to 65.30or imprinted at the bottom a bar code that provides all information required by the 65.31commissioner of revenue under section 
         297E.04, subdivision 2.65.32The serial number included in the bar code must be the same as the serial number 65.33of the tickets included in the deal. A manufacturer who manufactures a deal of paper66.1pull-tabs must affix to the outside of the box containing that game the same bar code that 66.2is affixed to or imprinted at the bottom of a flare for that deal.66.3(c) No person may alter the bar code that appears on the outside of a box containing 66.4a deal of paper pull-tabs and tipboards. Possession of a box containing a deal of paper66.5pull-tabs and tipboards that has a bar code different from the bar code of the deal inside 66.6the box is prima facie evidence that the possessor has altered the bar code on the box.66.7(d) The flare of each deal of paper pull-tabs and tipboards sold by a manufacturer for 66.8use or resale in Minnesota must have imprinted on it a symbol that is at least one inch high 66.9and one inch wide consisting of an outline of the geographic boundaries of Minnesota 66.10with the letters "MN" inside the outline. The flare must be placed inside the wrapping of 66.11the deal which the flare describes.66.12(e) Each paper pull-tab and tipboard flare must bear the following statement printed 66.13in letters large enough to be clearly legible:66.14"Pull-tab (or tipboard) purchasers -- This pull-tab (or tipboard) game is not legal in 66.15Minnesota unless:66.16-- an outline of Minnesota with letters "MN" inside it is imprinted on this sheet, and66.17-- the serial number imprinted on the bar code at the bottom of this sheet is the same 66.18as the serial number on the pull-tab (or tipboard) ticket you have purchased."66.19(f) The flare of each paper pull-tab and tipboard game must have the serial number 66.20of the game imprinted on the bar code at the bottom of the flare in numerals at least 66.21one-half inch high.66.22    Sec. 42. Minnesota Statutes 2010, section 349.163, subdivision 6, is amended to read:66.23    Subd. 6. Samples of gambling equipment.(a) The board shall require each 66.24licensed manufacturer to submit to the board one or more samples of each item of gambling 66.25equipment the manufacturer manufactures manufactured for use or resale in this state.66.26For purposes of this subdivision, a manufacturer is also required to submit the applicable 66.27version of any software necessary to operate electronic devices and related systems.66.28(b) The board shall inspect and test all the equipment, including software and 66.29software upgrades, it deems necessary to determine the equipment's compliance with 66.30law and board rules. Samples required under this subdivision must be approved by the 66.31board before the equipment being sampled is shipped into or sold for use or resale in this 66.32state. The board shall impose a fee of $25 for each item of gambling equipment that the 66.33manufacturer submits for approval or for which the manufacturer requests approval. The 66.34board shall impose a fee of $100 for each sample of gambling equipment that it tests.67.1(c) The board may require samples of gambling equipment to be tested by an 67.2independent testing laboratory prior to submission to the board for approval. All costs 67.3of testing by an independent testing laboratory must be borne by the manufacturer. An 67.4independent testing laboratory used by a manufacturer to test samples of gambling 67.5equipment must be approved by the board before the equipment is submitted to the 67.6laboratory for testing.67.7(d) The board may request the assistance of the commissioner of public safety and 67.8the director of the State Lottery in performing the tests.67.9    Sec. 43. Minnesota Statutes 2010, section 349.1635, subdivision 2, is amended to read:67.10    Subd. 2. License application. The board may issue a license to a linked bingo game 67.11provider or to a manufacturer licensed under section 349.163 who meets the qualifications 67.12of this chapter and the rules promulgated by the board. The application shall be on a form 67.13prescribed by the board. The license is valid for two years and the fee for a linked bingo 67.14game provider license is $5,000 per year.67.15    Sec. 44. Minnesota Statutes 2010, section 349.1635, subdivision 3, is amended to read:67.16    Subd. 3. Attachments to application. An applicant for a linked bingo game 67.17provider license must attach to its application:67.18(1) evidence of a bond in the principal amount of $100,000 payable to the state of 67.19Minnesota conditioned on the payment of all linked bingo prizes and any other money due 67.20and payable under this chapter;67.21(2) detailed plans and specifications for the operation of the linked bingo game and 67.22the linked bingo system, along with a proposed fee schedule for the cost of providing 67.23services and equipment to licensed organizations which may not exceed 15 percent of 67.24gross profits, unless a higher percentage, not to exceed 20 percent, is authorized by the 67.25board. The fee schedule must incorporate costs paid to distributors for services provided 67.26under subdivision 5; and67.27(3) any other information required by the board by rule.67.28    Sec. 45. Minnesota Statutes 2010, section 349.1635, is amended by adding a 67.29subdivision to read:67.30    Subd. 5.Linked bingo game services requirements.(a) A linked bingo game 67.31provider must contract with licensed distributors for linked bingo game services including, 67.32but not limited to, the solicitation of agreements with licensed organizations, and 67.33installation, repair, or maintenance of the linked bingo game system.68.1(b) A distributor may not charge a fee to licensed organizations for services 68.2authorized and rendered under paragraph (a).68.3(c) A linked bingo game provider may not contract with any distributor on an 68.4exclusive basis.68.5(d) A linked bingo game provider may refuse to contract with a licensed distributor 68.6if the linked bingo game provider demonstrates that the licensed distributor is not capable 68.7of performing the services under the contract.68.8    Sec. 46. Minnesota Statutes 2010, section 349.165, subdivision 2, is amended to read:68.9    Subd. 2. Contents of application. An application for a premises permit must 68.10contain:68.11    (1) the name and address of the applying organization;68.12    (2) a description of the site for which the permit is sought, including its address and, 68.13where applicable, its placement within another premises or establishment;68.14    (3) if the site is leased, the name and address of the lessor and information about the 68.15lease the board requires, including all rents and other charges for the use of the site. The 68.16lease term is concurrent with the term of the premises permit. The lease must contain a 68.1730-day termination clause. No lease is required for the conduct of a raffle; and68.18    (4) other information the board deems necessary to carry out its purposes.68.19    An organization holding a premises permit must notify the board in writing within 68.20ten days whenever any material change is made in the above information.68.21    Sec. 47. Minnesota Statutes 2010, section 349.17, subdivision 6, is amended to read:68.22    Subd. 6. Conduct of bingo.The price of a face played on an electronic bingo 68.23device may not be less than the price of a face on a bingo paper sheet sold for the same 68.24game at the same occasion. A game of bingo begins with the first letter and number called68.25or displayed. Each player must cover, mark, or activate the numbers when bingo numbers 68.26are randomly selected, and announced, and or displayed to the players, either manually 68.27or with a flashboard and monitor. The game is won when a player, using bingo paper, 68.28bingo hard card, or a facsimile of a bingo paper sheet, has completed, as described in the 68.29bingo program, a previously designated pattern or previously determined requirements 68.30of the game and declared bingo. The game is completed when a winning card, sheet, or 68.31facsimile is verified and a prize awarded pursuant to subdivision 3.68.32    Sec. 48. Minnesota Statutes 2010, section 349.17, subdivision 7, is amended to read:69.1    Subd. 7. Bar bingo. An organization may conduct bar bingo subject to the 69.2following restrictions:69.3    (1) the bingo is conducted at a site the organization owns or leases and which has a 69.4license for the sale of intoxicating beverages on the premises under chapter 340A; and69.5    (2) the bingo is conducted using only bingo paper sheets or facsimiles of bingo paper 69.6sheets purchased from a licensed distributor or licensed linked bingo game provider; and.69.7    (3) no rent may be paid for a bar bingo occasion.69.8    Sec. 49. Minnesota Statutes 2010, section 349.17, subdivision 8, is amended to read:69.9    Subd. 8. Linked bingo games. (a) A licensed organization may conduct or 69.10participate in not more than two linked bingo games per occasion, one of which may be a, 69.11including progressive gamegames in which a portion of the prize is carried over from 69.12one occasion game to another until won by a player achieving a valid bingo within a 69.13predetermined amount of bingo numbers calledbased upon a predetermined and posted 69.14win determination.69.15    (b) Each participating licensed organization shall contribute to each prize awarded in 69.16a linked bingo game in an amount not to exceed $300. Linked bingo games may only be 69.17conducted by licensed organizations who have a valid agreement with the linked bingo 69.18game provider.69.19    (c) An electronic bingo device as defined in section 
         349.12, subdivision 12a, may 69.20be used for a linked bingo game.69.21    (d) The board may adopt rules to:69.22    (1) specify the manner in which a linked bingo game must be played and how the 69.23linked bingo prizes must be awarded;69.24    (2) specify the records to be maintained by a linked bingo game provider;69.25    (3) require the submission of periodic reports by the linked bingo game provider and 69.26specify the content of the reports;69.27    (4) establish the qualifications required to be licensed as a linked bingo game 69.28provider; and69.29    (5) any other matter involving the operation of a linked bingo game.69.30    Sec. 50. Minnesota Statutes 2010, section 349.17, is amended by adding a subdivision 69.31to read:69.32    Subd. 9.Linked bingo games played exclusively on electronic bingo devices.In 69.33addition to the requirements of subdivision 8, the following requirements and restrictions 69.34apply when linked bingo games are played exclusively on electronic bingo devices.70.1(a) The permitted premises must be:70.2(1) a premises licensed for the on-sale or off-sale of intoxicating liquor or 3.2 percent 70.3malt beverages, except for a general food store or drug store permitted to sell alcoholic 70.4beverages under section 340A.405, subdivision 1; or70.5(2) a premises where bingo is conducted as the primary business and has a seating 70.6capacity of at least 100.70.7(b) The number of electronic bingo devices is limited to:70.8(1) no more than six devices in play for permitted premises with 200 seats or less;70.9(2) no more than 12 devices in play for permitted premises with 201 seats or more; 70.10and70.11(3) no more than 50 devices in play for permitted premises where bingo is the 70.12primary business.70.13Seating capacity is determined as specified under the local fire code.70.14(c) Prior to a bingo occasion, the linked bingo game provider, on behalf of the 70.15participating organizations, must provide to the board a bingo program in a format 70.16prescribed by the board.70.17(d) Before participating in the play of a linked bingo game, a player must present 70.18and register a valid picture identification card that includes the player's address and 70.19date of birth.70.20(e) An organization may remove from play a device that a player has not maintained 70.21in an activated mode for a specified period of time determined by the organization. The 70.22organization must provide the notice in its house rules.70.23    Sec. 51. Minnesota Statutes 2010, section 349.1711, subdivision 1, is amended to read:70.24    Subdivision 1. Sale of tickets. (a) Tipboard games must be played using only 70.25tipboard tickets that are either (1) attached to a placard and arranged in columns or rows, 70.26or (2) separate from the placard and contained in a receptacle while the game is in play. 70.27The placard serves as the game flare. 70.28(b) Except for a sports-themed tipboard, the placard must contain a seal that conceals 70.29the winning number or symbol. When a tipboard ticket is purchased and opened from a 70.30game containing more than 32 tickets, each player having a tipboard ticket with one or 70.31more predesignated numbers or symbols must sign the placard at the line indicated by the 70.32number or symbol on the tipboard ticket.70.33    Sec. 52. Minnesota Statutes 2010, section 349.1711, subdivision 2, is amended to read:71.1    Subd. 2. Determination of winners. When the predesignated numbers or symbols 71.2have all been purchased, or all of the tipboard tickets for that game have been sold, 71.3the seal must be removed to reveal a number or symbol that determines which of the 71.4predesignated numbers or symbols is the winning number or symbol. A tipboard may also 71.5contain consolation winners, or winning chances that are determined in whole or in part 71.6by the numerical outcome of one or more professional sporting events, that need not be 71.7determined by the use of the seal.71.8    Sec. 53. Minnesota Statutes 2010, section 349.1721, is amended to read:71.9349.1721 CONDUCT OF PULL-TABS.71.10    Subdivision 1. Cumulative or carryover games. The board shall by rule permit 71.11pull-tab games with multiple seals. The board shall also adopt rules for pull-tab games with 71.12cumulative or carryover prizes. The rules shall also apply to electronic pull-tab games.71.13    Subd. 2. Event games. The board shall by rule permit pull-tab games in which 71.14certain winners are determined by the random selection of one or more bingo numbers 71.15or by another method approved by the board. The rules shall also apply to electronic 71.16pull-tab games. 71.17    Subd. 3.Pull-tab dispensing device location restrictions and requirements.71.18The following pertain to pull-tab dispensing devices as defined under section 349.12, 71.19subdivision 32a.71.20(a) The use of any pull-tab dispensing device must be at a permitted premises 71.21which is:71.22(1) a licensed premises for on-sale of intoxicating liquor or 3.2 percent malt 71.23beverages;71.24(2) a premises where bingo is conducted as the primary business; or71.25(3) an establishment licensed for the off-sale of intoxicating liquor, other than drug 71.26stores and general food stores licensed under section 340A.405, subdivision 1.71.27(b) The number of pull-tab dispensing devices located at any permitted premises 71.28is limited to three.71.29    Subd. 4.Electronic pull-tab device requirements and restrictions.The following 71.30pertain to the use of electronic pull-tab devices as defined under section 349.12, 71.31subdivision 12b.71.32(a) The use of any electronic pull-tab device may only be at a permitted premises 71.33that is:72.1(1) a premises licensed for the on-sale or off-sale of intoxicating liquor or 3.2 percent 72.2malt beverages, except for a general food store or drug store permitted to sell alcoholic 72.3beverages under section 340A.405, subdivision 1; or72.4(2) a premises where bingo is conducted as the primary business and has a seating 72.5capacity of at least 100; and72.6(3) where the licensed organization sells paper pull-tabs. 72.7(b) The number of electronic pull-tab devices is limited to:72.8(1) no more than six devices in play at any permitted premises with 200 seats or less;72.9(2) no more than 12 devices in play at any permitted premises with 201 seats 72.10or more; and72.11(3) no more than 50 devices in play at any permitted premises where the primary 72.12business is bingo.72.13Seating capacity is determined as specified under the local fire code.72.14(c) The hours of operation for the devices are limited to 8:00 a.m. to 2:00 a.m.72.15(d) All electronic pull-tab games must be sold and played on the permitted premises 72.16and may not be linked to other permitted premises.72.17(e) Electronic pull-tab games may not be transferred electronically or otherwise to 72.18any other location by the licensed organization.72.19(f) Electronic pull-tab games may be commingled if the games are from the same 72.20family of games and manufacturer and contain the same game name, form number, type 72.21of game, ticket count, prize amounts, and prize denominations. Each commingled game 72.22must have a unique serial number.72.23(g) An organization may remove from play a device that a player has not maintained 72.24in an activated mode for a specified period of time determined by the organization. The 72.25organization must provide the notice in its house rules. 72.26(h) Before participating in the play of an electronic pull-tab game, a player must 72.27present and register a valid picture identification card that includes the player's address 72.28and date of birth.72.29(i) Each player is limited to the use of one device at a time.72.30    Subd. 5.Multiple chance games.The board may permit pull-tab games in which 72.31the holders of certain predesignated winning tickets, with a prize value not to exceed $75 72.32each, have the option of turning in the winning tickets for the chance to win a prize of 72.33greater value.72.34    Sec. 54. Minnesota Statutes 2010, section 349.18, subdivision 1, is amended to read:73.1    Subdivision 1. Lease or ownership required; rent limitations. (a) An organization 73.2may conduct lawful gambling only on premises it owns or leases. Leases must be on a 73.3form prescribed by the board. The term of the lease is concurrent with the premises permit. 73.4Leases approved by the board must specify that the board may authorize an organization 73.5to withhold rent from a lessor for a period of up to 90 days if the board determines that 73.6illegal gambling occurred on the premises or that the lessor or its employees participated 73.7in the illegal gambling or knew of the gambling and did not take prompt action to stop the 73.8gambling. The lease must authorize the continued tenancy of the organization without 73.9the payment of rent during the time period determined by the board under this paragraph. 73.10Copies of all leases must be made available to employees of the board and the Division of 73.11Alcohol and Gambling Enforcement on request.73.12    (b) Rent paid by an organization for leased premises for the conduct of pull-tabs, 73.13tipboards, and paddle wheels lawful gambling is subject to the following limits and 73.14restrictions:73.15    (1) For booth operations, including booth operations where a pull-tab dispensing 73.16device is located, booth operations where a bar operation is also conducted, and booth 73.17operations where both a pull-tab dispensing device is located and a bar operation is also 73.18conducted, the maximum rent is: monthly rent may not exceed ten percent of gross profits 73.19for that month. Total rent paid to a lessor from all organizations from leases governed by 73.20this clause may not exceed $1,750 per month.73.21    (i) in any month where the organization's gross profit at those premises does not 73.22exceed $4,000, up to $400; and73.23    (ii) in any month where the organization's gross profit at those premises exceeds 73.24$4,000, up to $400 plus not more than ten percent of the gross profit for that month in 73.25excess of $4,000;73.26    (2) For bar operations, including bar operations where a pull-tab dispensing device 73.27is located but not including bar operations subject to clause (1), and for locations where 73.28only a pull-tab dispensing device is located: monthly rent may not exceed:73.29(i) 15 percent of the gross profits for that month from pull-tabs sold from a pull-tab 73.30dispensing device, electronic pull-tab games, and electronic linked bingo games; and73.31(ii) more than 20 percent of gross profits from all other forms of lawful gambling.73.32    (i) in any month where the organization's gross profit at those premises does not 73.33exceed $1,000, up to $200; and73.34    (ii) in any month where the organization's gross profit at those premises exceeds 73.35$1,000, up to $200 plus not more than 20 percent of the gross profit for that month 73.36in excess of $1,000;74.1    (3) a lease not governed by clauses (1) and (2) must be approved by the board before 74.2becoming effective; For electronic linked bingo games and electronic pull-tab games that 74.3are operated for separate time periods within a business day by an organization and the 74.4lessor, monthly rent may not be more than:74.5(i) 15 percent of the gross profits for that month for the time periods operated by 74.6the lessor. The lessor is responsible for cash shortages that occur during the time periods 74.7the games are operated by the lessor; and74.8(ii) ten percent of gross profits for that month for the time periods operated by the 74.9organization. The organization is responsible for cash shortages that occur during the time 74.10periods the games are operated by the organization.74.11    (4) total rent paid to a lessor from all organizations from leases governed by clause 74.12(1) may not exceed $1,750 per month.74.13    (c) Rent paid by an organization for leased premises for the conduct of bingo is 74.14subject to either of the following limits at the option of the parties to the lease:74.15    (1) (4) For bingo conducted at a leased premises where the primary business is 74.16bingo, rent is limited to either not more than ten percent of the monthly gross profit from 74.17all lawful gambling activities held during bingo occasions, excluding bar bingo or at a 74.18rate based on a cost per square foot not to exceed 110 percent of a comparable cost per 74.19square foot for leased space as approved by the director; and.74.20    (2) (5) No rent may be paid for bar bingo as defined in section 349.12, subdivision 3c.74.21(6) A lease not governed by clauses (1) to (5) must be approved by the director 74.22before becoming effective.74.23    (d) (c) Amounts paid as rent under leases are all-inclusive. No other services or 74.24expenses provided or contracted by the lessor may be paid by the organization, including, 74.25but not limited to, trash removal, janitorial and cleaning services, snow removal, lawn 74.26services, electricity, heat, security, security monitoring, storage, and other utilities or 74.27services, and, in the case of bar operations, cash shortages, unless approved by the 74.28director. The lessor shall be responsible for the cost of any communications network or 74.29service required to conduct electronic pull-tab games or electronic bingo games. Any 74.30other expenditure made by an organization that is related to a leased premises must be 74.31approved by the director. For bar operations, the lessor is responsible for cash shortages.74.32An organization may not provide any compensation or thing of value to a lessor or the 74.33lessor's employees from any fund source other than its gambling account. Rent payments 74.34may not be made to an individual.75.1    (e) (d) Notwithstanding paragraph (b), an organization may pay a lessor for food 75.2or beverages or meeting room rental if the charge made is comparable to similar charges 75.3made to other individuals or groups.75.4    (f) No entity other than the (e) A licensed organization may not conduct any activity 75.5within a booth operation on behalf of the lessor on a leased premises.75.6    Sec. 55. Minnesota Statutes 2010, section 349.19, subdivision 2, is amended to read:75.7    Subd. 2. Accounts. (a) Gross receipts from lawful gambling by each organization 75.8must be segregated from all other revenues of the conducting organization and placed in a 75.9separate gambling bank account.75.10(b) All expenditures for allowable expenses, taxes, and lawful purposes must be 75.11made from the separate account except (1) in the case of expenditures previously approved 75.12by the organization's membership for emergencies as defined by board rule, (2) as provided 75.13in subdivision 2a, or (3) when restricted to one electronic fund transaction for the payment 75.14of taxes for the organization as a whole, the organization may transfer the amount of taxes 75.15related to the conduct of gambling to the general account at the time when due and payable.75.16(c) The name and address of the bank, the account number for the separate account, 75.17and the names of organization members authorized as signatories on the separate account 75.18must be provided to the board when the application is submitted. Changes in the 75.19information must be submitted to the board at least ten days before the change is made.75.20(d) Except for gambling receipts from electronic pull-tab games and linked 75.21electronic bingo games, gambling receipts must be deposited into the gambling bank 75.22account within four business days of completion of the bingo occasion, deal, or game from 75.23which they are received.75.24(1) A deal of paper pull-tabs is considered complete when either the last pull-tab of 75.25the deal is sold or the organization does not continue the play of the deal during the next 75.26scheduled period of time in which the organization will conduct pull-tabs.75.27(2) A tipboard game is considered complete when the seal on the game flare is 75.28uncovered or the organization does not continue the play of the deal during the next 75.29scheduled period of time in which the organization will conduct tipboards.75.30(e) Gambling receipts from all electronic pull-tab games and all linked electronic 75.31bingo games must be recorded on a daily basis and deposited into the gambling bank 75.32account within two business days.75.33(e) (f) Deposit records must be sufficient to allow determination of deposits made 75.34from each bingo occasion, deal, or game at each permitted premises.76.1(f) (g) The person who accounts for gambling gross receipts and profits may not be 76.2the same person who accounts for other revenues of the organization.76.3    Sec. 56. Minnesota Statutes 2010, section 349.19, subdivision 3, is amended to read:76.4    Subd. 3. Expenditures. (a) All expenditures of gross profits from lawful gambling 76.5must be itemized as to payee, purpose, amount, and date of payment.76.6(b) Each licensed organization must report monthly to the board on a form in an 76.7electronic format prescribed by the board each expenditure or contribution of net profits 76.8from lawful gambling. The reports must provide for each expenditure or contribution:76.9(1) the name of the recipient of the expenditure or contribution;76.10(2) the date the expenditure or contribution was approved by the organization;76.11(3) the date, amount, and check number or electronic transfer confirmation number 76.12of the expenditure or contribution;76.13(4) a brief description of how the expenditure or contribution meets one or more of 76.14the purposes in section 
         349.12, subdivision 25; and76.15(5) in the case of expenditures authorized under section 
         349.12, subdivision 25, 76.16paragraph (a), clause (7), whether the expenditure is for a facility or activity that primarily 76.17benefits male or female participants.76.18(c) Authorization of the expenditures must be recorded in the monthly meeting 76.19minutes of the licensed organization.76.20(d) Checks or authorizations for electronic fund transfers for expenditures of gross 76.21profits must be signed by at least two persons authorized by board rules to sign the 76.22checks or authorizations.76.23(e) Expenditures of gross profits from lawful gambling for local, state, and federal 76.24taxes as identified in section 
         349.12, subdivision 25, paragraph (a), clause (8), may be 76.25transferred electronically from the organization's gambling account directly to bank 76.26accounts identified by local, state, or federal agencies if the organization's gambling 76.27account monthly bank statement specifically identifies the payee by name, the amount 76.28transferred, and the date of the transaction.76.29(f) Expenditures of gross profits from lawful gambling for payments for lawful 76.30purpose expenditures and allowable expenses may be transferred electronically from the 76.31organization's gambling account directly to bank accounts identified by the vendor if the 76.32organization's gambling account monthly bank statement specifically identifies the payee 76.33by name, the amount transferred, the account number of the account into which the funds 76.34were transferred, and the date of the transaction.77.1(g) Expenditures of gross profits from lawful gambling for payroll compensation 77.2to an employee's account and for the payment of local, state, and federal withholding 77.3taxes may be transferred electronically to and from the account of a payroll processing 77.4firm provided that the firm:77.5(1) is currently registered with and meets the criteria of the Department of Revenue 77.6as a third-party bulk filer under section 
         290.92, subdivision 30;77.7(2) is able to provide proof of a third-party audit and an annual report and statement 77.8of financial condition;77.9(3) is able to provide evidence of a fidelity bond; and77.10(4) can provide proof of having been in business as a third-party bulk filer for the 77.11most recent three years.77.12(h) Electronic payments of taxes, lawful purpose expenditures, and allowable 77.13expenses are permitted only if they have been authorized by the membership, the 77.14organization maintains supporting documentation, and the expenditures can be verified.77.15EFFECTIVE DATE.This section is effective July 1, 2012.77.16    Sec. 57. Minnesota Statutes 2010, section 349.19, subdivision 5, is amended to read:77.17    Subd. 5. Reports.(a) A licensed organization must report monthly to the 77.18Department of Revenue board in an electronic format prescribed by the board and to its 77.19membership monthly, or quarterly in the case of a licensed organization which does not 77.20report more than $1,000 in gross receipts from lawful gambling in any calendar quarter,77.21on its gross receipts, expenses, profits, and expenditure of profits from lawful gambling77.22for each permitted premises. The organization must account for and report on each form 77.23of lawful gambling conducted. The report organization must include a reconciliation of 77.24the organization's profit carryover with its cash balance on hand. If the organization 77.25conducts both bingo and other forms of lawful gambling, the figures for both must be 77.26reported separately.77.27(b) The organization must report annually to its membership and annually file with 77.28the board a financial summary report in a format prescribed by the board that identifies the 77.29organization's receipts and use of lawful gambling proceeds, including: monthly to the 77.30commissioner of revenue as required under section 297E.06.77.31(1) gross receipts;77.32(2) prizes paid;77.33(3) allowable expenses;78.1(4) lawful purpose expenditures, including annual totals for types of charitable 78.2contributions and all taxes and fees as per section 349.12, subdivision 25, paragraph 78.3(a), clauses (8) and (18);78.4(5) the percentage of annual gross profits used for charitable contributions; and78.5(6) the percentage of annual gross profits used for all taxes and fees as per section 78.6349.12, subdivision 25, paragraph (a), clauses (8) and (18).78.7EFFECTIVE DATE.This section is effective July 1, 2012.78.8    Sec. 58. Minnesota Statutes 2010, section 349.19, subdivision 10, is amended to read:78.9    Subd. 10. Pull-tab records. (a) The board shall by rule require a licensed 78.10organization to require each winner of a paper pull-tab prize of $50 or more to present 78.11identification in the form of a driver's license, Minnesota identification card, or other 78.12identification the board deems sufficient to allow the identification and tracking of the 78.13winner. The rule must require the organization to retain winning paper pull-tabs of $50 or 78.14more, and the identification of the winner of the pull-tab, for 3-1/2 years.78.15    (b) An organization must maintain separate cash banks for each deal of paper78.16pull-tabs unless (1) the licensed organization uses a pull-tab dispensing device, or (2) the 78.17organization uses a cash register, of a type approved by the board, which records all 78.18sales of paper pull-tabs by separate deals.78.19    (c) The board shall:78.20    (1) by rule adopt minimum technical standards for cash registers that may be used 78.21by organizations, and shall approve for use by organizations any cash register that meets 78.22the standards; and78.23    (2) before allowing an organization to use a cash register that commingles receipts 78.24from several different paper pull-tab games in play, adopt rules that define how cash 78.25registers may be used and that establish a procedure for organizations to reconcile all 78.26pull-tab games in play at the end of each month.78.27    Sec. 59. Minnesota Statutes 2010, section 349.211, subdivision 1a, is amended to read:78.28    Subd. 1a. Linked bingo prizes. Prizes for a linked bingo game shall be limited 78.29as follows:78.30(1) no organization may contribute more than $300 per linked bingo game to a 78.31linked bingo prize pool for linked bingo games played without electronic bingo devices, 78.32an organization may not contribute to a linked bingo game prize pool more than $300 78.33per linked bingo game per site;79.1(2) for linked bingo games played exclusively with electronic bingo devices, an 79.2organization may not contribute more than 85 percent of the gross receipts per permitted 79.3premises to a linked bingo game prize pool;79.4(2) (3) no organization may award more than $200 for a linked bingo game 79.5consolation prize. For purposes of this subdivision, a linked bingo game consolation 79.6prize is a prize awarded by an organization after a prize from the linked bingo prize pool 79.7has been won; and79.8    (3) (4) for a progressive linked bingo game, if no player declares a valid bingo 79.9within the for a progressive prize or prizes based on a predetermined amount of bingo 79.10numbers called and posted win determination, a portion of the prize is gross receipts 79.11may be carried over to another occasion game until the accumulated progressive prize 79.12is won. The portion of the prize that is not carried over must be awarded to the first 79.13player or players who declares a valid bingo as additional numbers are called. If a valid 79.14bingo is declared within the predetermined amount of bingo numbers called, the entire 79.15prize pool for that game is awarded to the winner. The annual limit for progressive bingo 79.16game prizes contained in subdivision 2 must be reduced by the amount an organization 79.17contributes to progressive linked bingo games during the same calendar year.; and79.18(5) for linked bingo games played exclusively with electronic bingo devices, linked 79.19bingo prizes in excess of $599 shall be paid by the linked bingo game provider to the 79.20player within three business days. Winners of linked bingo prizes in excess of $599 will 79.21be given a receipt or claim voucher as proof of a win.79.22    Sec. 60. Minnesota Statutes 2010, section 349.211, subdivision 2c, is amended to read:79.23    Subd. 2c. Tipboard prizes. (a) The maximum prize which may be awarded for 79.24a tipboard ticket is $599 for $2 and under tipboard tickets, $899 for $3 tipboard tickets, 79.25$1,199 for $4 tipboard tickets, and $1,499 for $5 tipboard tickets, not including any 79.26cumulative or carryover prizes. Cumulative or carryover prizes in tipboard games shall 79.27not exceed $2,500. An organization may not sell any tipboard ticket for more than $5.79.28(b) For sports-themed tipboards, the total prize payout may not exceed the amount in 79.29section 349.2113, and each chance or ticket may not be sold for more than $10.79.30    Sec. 61. SEVERABILITY.79.31If any provision of this act is found to be invalid because it is in conflict with a 79.32provision of the Minnesota Constitution or the Constitution of the United States, or for any 79.33other reason, all other provisions of this act shall remain valid and any rights, remedies, 80.1and privileges that have been otherwise accrued by this act, shall remain in effect and may 80.2be proceeded with and concluded under this act.80.3    Sec. 62. APPROPRIATION.80.4$1,219,000 in fiscal year 2013 is appropriated from the lawful gambling regulation 80.5account in the special revenue fund to the Gambling Control Board for operating expenses 80.6related to the regulatory oversight of lawful gambling for electronic pull-tabs and 80.7electronic linked bingo.80.8    Sec. 63.  REPEALER.80.9Minnesota Statutes 2010, sections 297E.02, subdivision 4; 349.15, subdivision 3; 80.10and 349.19, subdivision 2a, are repealed.80.11EFFECTIVE DATE.This section is effective for games sold by a licensed 80.12distributor after June 30, 2012, and the commissioner of revenue retains the authority to 80.13issue refunds under Minnesota Statutes 2010, section 297E.02, subdivision 4, paragraph 80.14(d), for games sold before July 1, 2012.80.15    Sec. 64. EFFECTIVE DATE.80.16Unless otherwise specifically provided, this act is effective the day following final 80.17enactment.80.18ARTICLE 680.19MISCELLANEOUS80.20    Section 1. USE OF THE STADIUM.80.21    Subdivision 1.Amateur sports use.The lessee of the stadium must make the 80.22facilities of the stadium available to the Minnesota Amateur Sports Commission up to 80.23ten days each year on terms satisfactory to the commission for amateur sports activities 80.24consistent with Minnesota Statutes, chapter 240A, each year during the time the bonds 80.25issued pursuant to this act are outstanding. The commission must negotiate in good faith 80.26and may be required to pay no more than actual out-of-pocket expenses for the time 80.27it uses the stadium.80.28    Subd. 2.High school league.The lessee of the stadium must make the facilities of 80.29the stadium available for use by the Minnesota State High School League for at least seven 80.30days each year for high school soccer and football tournaments. The lessee of the stadium 81.1must provide, and may not charge the league a fee for, this use, including security, ticket 81.2takers, custodial or cleaning services, or other similar services in connection with this use.81.3ARTICLE 781.4STADIUM BLINK-ON FUNDING81.5    Section 1. [16A.1524] BACKUP REVENUES; FOOTBALL STADIUM 81.6FUNDING.81.7    (a) If the commissioner of management and budget determines that the amount of 81.8revenues under section 16A.965, subdivision 8, paragraph (a), for the next fiscal year will 81.9be less than the amounts specified in section 16A.965, subdivision 8, paragraph (b), for 81.10that fiscal year, the commissioner may implement the revenue options authorized in this 81.11article. If the commissioner determines to exercise the authority under this section for 81.12a fiscal year, the commissioner must implement the revenue options, as necessary, in 81.13the following order:81.14(1) a tax on luxury boxes as provided under section 473J.14, paragraph (a), clause 81.15(1);81.16    (2) a sports-themed lottery game under section 349A.20;81.17(3) an extension of the convention center taxes under article 4 through calendar 81.18year 2050;81.19    (4) excess revenue from Hennepin County tax as provided under section 473.757, 81.20subdivision 11, paragraph (d); and81.21    (5) an admissions tax, as provided under section 473J.14, paragraph (a), clause (2).81.22    (b) Revenue raised under the authority granted by this section must be deposited 81.23in the general fund.81.24    (c) If the commissioner determines to implement one or more of the revenue options 81.25authorized by this section, each subsequent year the commissioner must determine if 81.26the revenue is needed and will be imposed and collected for the next fiscal year. If the 81.27commissioner determines that one or more revenue options implemented for a fiscal year 81.28are not needed for a subsequent fiscal year, the commissioner must terminate them in the 81.29reverse order they were required to be implemented by paragraph (a) with the last option 81.30implemented terminated first and so forth.81.31    (d) Before implementing a revenue source authorized under this section, the 81.32commissioner must report the intent to do so to the Legislative Commission on Planning 81.33and Fiscal Policy. The commissioner must inform the commission of determinations to 81.34continue or discontinue each revenue source for a subsequent fiscal year.82.1    Sec. 2. [349A.20] STADIUM, SPORTS-THEMED GAME.82.2    The State Lottery shall conduct a game based on stadium or professional sports 82.3themes to generate a minimum of $2,100,000 in additional revenue for the fiscal year 82.4for the general fund.82.5EFFECTIVE DATE.This section is effective pursuant to the authority granted 82.6under section 1, on the day following final enactment.82.7    Sec. 3. Minnesota Statutes 2011 Supplement, section 473.757, subdivision 11, is 82.8amended to read:82.9    Subd. 11. Uses of tax. (a) Revenues received from the tax imposed under 82.10subdivision 10 may be used:82.11    (1) to pay costs of collection;82.12    (2) to pay or reimburse or secure the payment of any principal of, premium, or 82.13interest on bonds issued in accordance with Laws 2006, chapter 257, section 12;82.14    (3) to pay costs and make expenditures and grants described in this section, including 82.15financing costs related to them;82.16    (4) to maintain reserves for the foregoing purposes deemed reasonable and 82.17appropriate by the county;82.18    (5) to pay for operating costs of the ballpark authority other than the cost of 82.19operating or maintaining the ballpark; and82.20    (6) to make expenditures and grants for youth activities and amateur sports and 82.21extension of library hours as described in subdivision 2;82.22and for no other purpose.82.23    (b) Revenues from the tax designated for use under paragraph (a), clause (5), must 82.24be deposited in the operating fund of the ballpark authority.82.25    (c) After completion of the ballpark and public infrastructure, the tax revenues not 82.26required for current payments of the expenditures described in paragraph (a), clauses (1) to 82.27(6), shall be used to (i) redeem or defease the bonds and (ii) prepay or establish a fund for 82.28payment of future obligations under grants or other commitments for future expenditures 82.29which are permitted by this section. Upon the redemption or defeasance of the bonds and 82.30the establishment of reserves adequate to meet such future obligations, the taxes shall 82.31terminate and shall not be reimposed. For purposes of this subdivision, "reserves adequate 82.32to meet such future obligations" means a reserve that does not exceed the net present value 82.33of the county's obligation to make grants under paragraph (a), clauses (5) and (6), and to 82.34fund the reserve for capital improvements required under section 
         473.759, subdivision 3, 83.1for the 30-year period beginning on the date of the original issuance of the bonds, less 83.2those obligations that the county has already paid. Each fiscal year revenues available 83.3for use under this paragraph must be accumulated and may not be expended under this 83.4paragraph until 15 days after the close of the county's fiscal year, provided that the county 83.5has not received a notice under paragraph (d).83.6    (d) Notwithstanding the authority to use revenues under paragraph (c), upon 83.7notification by the commissioner of management and budget under section 16A.1524 for a 83.8state fiscal year, the county must pay any revenues that would be available under paragraph 83.9(c) to the commissioner for that state fiscal year as provided under section 16A.1524.83.10EFFECTIVE DATE.This section is effective the day following final enactment 83.11without local approval by Hennepin County under Minnesota Statutes, section 645.023, 83.12subdivision 1, paragraph (c).83.13    Sec. 4. [473J.14] ADMISSIONS TAX.83.14    (a) Upon notification by the commissioner of management and budget under section 83.1516A.1524, the commission shall by resolution impose and maintain a ten percent tax 83.16on either or both of:83.17(1) the gross receipts received for the rental of box seats, suites, sky boxes, and 83.18similar in the NFL stadium; or83.19(2) the granting, issuance, sale, or distribution, by any private or public person, 83.20association, or corporation, of the privilege of admission to professional sporting events 83.21at the NFL stadium.83.22(b) Each tax must be imposed in the years specified by the commissioner of 83.23management and budget. The suites rental tax under paragraph (a), clause (1), applies to 83.24the gross receipts, as defined under section 297A.61, received by the seller, as defined 83.25in section 297A.61, and is a debt owed by the seller to the commission. The admission 83.26tax under paragraph (a), clause (2), must be stated and charged separately from the sales 83.27price so far as practicable and the grantor, seller, or distributor must collect the tax from 83.28the person admitted and the tax is a debt from that person to the grantor, issuer, seller, or 83.29distributor, and the tax required to be collected is a debt owed by the grantor, issuer, seller, 83.30or distributor to the commission. Any tax imposed under this section is recoverable at 83.31law by the commission from the grantor, issuer, seller, or distributor in the same manner 83.32as other debts. Every person granting, issuing, selling, or distributing tickets for taxable 83.33admissions or renting boxes, suites, or similar may be required, as provided in resolutions 83.34of the commission, to secure a permit, to file returns, to deposit security for the payment 83.35of the tax, and to pay the penalties for nonpayment and interest on late payments, as the 84.1commission deems necessary or expedient to assure the prompt and uniform collection of 84.2either or both of the taxes.84.3    (c) The commission shall remit the proceeds of any taxes imposed under this section 84.4to the commissioner of management and budget for deposit in the state's general fund.84.5    (d) Notwithstanding any other provisions of this section, the imposition of an 84.6admission tax upon a national superbowl football game conducted at the NFL stadium is 84.7discretionary with the commission. 84.8    Sec. 5. [473J.145] MINNEAPOLIS; CONVENTION CENTER TAX 84.9EXTENSION.84.10The taxes under Laws 1986, chapter 396, sections 4 and 5, may be extended by 84.11order of the commissioner of management and budget beyond the 2047 sunset specified 84.12under article 4, as an additional source of revenue for repayment of the bonds sold under 84.13article 2. Any revenues collected from the extension of these taxes through 2048, 2049, 84.14and 2050 are appropriated to the commissioner of management and budget for repayment 84.15of the bonds sold by the state under article 2.84.16EFFECTIVE DATE.This section is effective pursuant to the authority granted 84.17under section 1, on the day following final enactment.