1.1 	A bill for an act
1.2 	relating to stadiums; providing for a new National Football League stadium in 
1.3 	Minnesota; establishing a Minnesota Sports Facilities Authority; establishing the 
1.4 	Legislative Commission on Minnesota Sports Facilities; authorizing the sale 
1.5 	and issuance of state appropriation bonds; abolishing the Metropolitan Sports 
1.6 	Facilities Commission; providing for use of certain local tax revenue; providing 
1.7 	for electronic pull-tab games and electronic linked bingo games; providing 
1.8 	for imposition of certain taxes and collection of other revenues; requiring a 
1.9 	report; modifying certain rates of tax on lawful gambling; providing for the 
1.10 	Minnesota Education, Retraining, and Investment in Talent Act; appropriating 
1.11 	money;amending Minnesota Statutes 2010, sections 3.971, subdivision 6; 
1.12 	3.9741, by adding a subdivision; 240A.12, subdivisions 1, 3; 297A.66, by adding 
1.13 	a subdivision; 297A.71, by adding subdivisions; 297A.75, subdivisions 1, as 
1.14 	amended, 2, as amended, 3, as amended; 297E.01, subdivisions 7, 8, 9; 297E.02, 
1.15 	subdivisions 1, 3, 6, 7, 10, 11, by adding a subdivision; 297E.13, subdivision 
1.16 	5; 349.12, subdivisions 3b, 3c, 5, 6a, 12a, 18, 25, 25b, 25c, 25d, 29, 31, 32, 
1.17 	by adding subdivisions; 349.13; 349.151, subdivisions 4b, 4c, by adding a 
1.18 	subdivision; 349.155, subdivisions 3, 4; 349.161, subdivisions 1, 5; 349.162, 
1.19 	subdivision 5; 349.163, subdivisions 1, 5, 6; 349.1635, subdivisions 2, 3, by 
1.20 	adding a subdivision; 349.165, subdivision 2; 349.17, subdivisions 6, 7, 8, by 
1.21 	adding a subdivision; 349.1721; 349.18, subdivision 1; 349.19, subdivisions 2, 3, 
1.22 	5, 10; 349.211, subdivision 1a; 352.01, subdivision 2a; Minnesota Statutes 2011 
1.23 	Supplement, section 10A.01, subdivision 35; Laws 1986, chapter 396, sections 4, 
1.24 	as amended; 5, as amended; proposing coding for new law in Minnesota Statutes, 
1.25 	chapters 3; 16A; 136A; 245; 297A; 297E; 349A; proposing coding for new law 
1.26 	as Minnesota Statutes, chapter 473J; repealing Minnesota Statutes 2010, sections 
1.27 	297E.02, subdivision 4; 349.15, subdivision 3; 349.19, subdivision 2a.
1.28 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.29 	ARTICLE 1
1.30 	MINNESOTA SPORTS FACILITIES AUTHORITY

1.31 	Section 1. [3.8842] LEGISLATIVE COMMISSION ON MINNESOTA SPORTS 
1.32 	FACILITIES.
2.1 		Subdivision 1.Purpose. The Legislative Commission on Minnesota Sports 
2.2 	Facilities is established to oversee the Minnesota Sports Facilities Authority's operating 
2.3 	and capital budgets. The legislature finds that continuous legislative review of the 
2.4 	financial management of the authority is necessary to promote fiscal responsibility and 
2.5 	good management, and strengthen the accountability of the authority. The commission is 
2.6 	charged with:
2.7 	(1) providing financial oversight of the authority as described in subdivision 8; 
2.8 	(2) adoption of a statewide authority structure for the operation and management 
2.9 	of sports facilities and entertainment venues under the jurisdiction of the authority. The 
2.10 	authority membership shall represent the interests of both the metropolitan area and 
2.11 	greater Minnesota; and
2.12 	(3) creating a comprehensive management plan that alleviates booking and 
2.13 	scheduling concerns regarding the sports facilities and entertainment venues under the 
2.14 	jurisdiction of the authority.
2.15 		Subd. 2.Membership. The commission consists of three senators appointed by 
2.16 	the senate majority leader, three senators appointed by the senate minority leader, three 
2.17 	state representatives appointed by the speaker of the house, and three state representatives 
2.18 	appointed by the house minority leader. The appointing authorities must ensure balanced 
2.19 	geographic representation. Each appointing authority must make appointments as 
2.20 	soon as possible after the opening of the next regular session of the legislature in each 
2.21 	odd-numbered year.
2.22 		Subd. 3.Terms; vacancies. Members of the commission serve for a two-year term 
2.23 	beginning upon appointment and expiring upon appointment of a successor after the 
2.24 	opening of the next regular session of the legislature in the odd-numbered year. A vacancy 
2.25 	in the membership of the commission must be filled for the unexpired term in a manner 
2.26 	that will preserve the representation established by this section.
2.27 		Subd. 4.Chair. The commission must meet as soon as practicable after members 
2.28 	are appointed in each odd-numbered year to elect its chair and other officers as it may 
2.29 	determine necessary. A chair serves a two-year term, expiring in the odd-numbered year 
2.30 	after a successor is elected. The chair must alternate biennially between the senate and the 
2.31 	house of representatives.
2.32 		Subd. 5.Compensation. Members serve without compensation but may be 
2.33 	reimbursed for their reasonable expenses as members of the legislature.
2.34 		Subd. 6.Staff. Legislative staff must provide administrative and research assistance 
2.35 	to the commission.
3.1 		Subd. 7.Meetings; procedures. The commission meets at least semiannually. 
3.2 	If there is a quorum, the commission may take action by a simple majority vote of 
3.3 	commission members present.
3.4 		Subd. 8.Powers; duties; Minnesota Sports Facilities Authority, budget 
3.5 	oversight. The commission must monitor, review, and make recommendations to the 
3.6 	authority and to the legislature for the following calendar year on:
3.7 	(1) any proposed increases in the rate or dollar amount of tax;
3.8 	(2) any proposed increases in the debt of the authority;
3.9 	(3) the overall work and role of the authority;
3.10 	(4) the authority's proposed operating and capital budgets;
3.11 	(5) the authority's implementation of the operating and capital budgets; and
3.12 	(6) any other topics as deemed necessary by the commission to fulfill the purpose 
3.13 	described in subdivision 1.

3.14 	Sec. 2. Minnesota Statutes 2010, section 3.971, subdivision 6, is amended to read:
3.15 		Subd. 6.Financial audits. The legislative auditor shall audit the financial 
3.16 	statements of the state of Minnesota required by section 16A.50 and, as resources permit, 
3.17 	shall audit Minnesota State Colleges and Universities, the University of Minnesota, 
3.18 	state agencies, departments, boards, commissions, courts, and other state organizations 
3.19 	subject to audit by the legislative auditor, including the State Agricultural Society, 
3.20 	Agricultural Utilization Research Institute, Enterprise Minnesota, Inc., Minnesota 
3.21 	Historical Society, Labor Interpretive Center, Minnesota Partnership for Action Against 
3.22 	Tobacco, Metropolitan Sports Facilities Commission, Minnesota Sports Facilities 
3.23 	Authority, Metropolitan Airports Commission, and Metropolitan Mosquito Control 
3.24 	District. Financial audits must be conducted according to generally accepted government 
3.25 	auditing standards. The legislative auditor shall see that all provisions of law respecting 
3.26 	the appropriate and economic use of public funds are complied with and may, as part of a 
3.27 	financial audit or separately, investigate allegations of noncompliance.

3.28 	Sec. 3. Minnesota Statutes 2010, section 3.9741, is amended by adding a subdivision 
3.29 	to read:
3.30 		Subd. 4.Minnesota Sports Facilities Authority. Upon the audit of the financial 
3.31 	accounts and affairs of the Minnesota Sports Facilities Authority, the authority is liable 
3.32 	to the state for the total cost and expenses of the audit, including the salaries paid to the 
3.33 	examiners while actually engaged in making the examination. The legislative auditor may 
4.1 	bill the authority either monthly or at the completion of the audit. All collections received 
4.2 	for the audits must be deposited in the general fund.

4.3 	Sec. 4. Minnesota Statutes 2011 Supplement, section 10A.01, subdivision 35, is 
4.4 	amended to read:
4.5 		Subd. 35.Public official. "Public official" means any:
4.6 	(1) member of the legislature;
4.7 	(2) individual employed by the legislature as secretary of the senate, legislative 
4.8 	auditor, chief clerk of the house of representatives, revisor of statutes, or researcher, 
4.9 	legislative analyst, or attorney in the Office of Senate Counsel and Research or House 
4.10 	Research;
4.11 	(3) constitutional officer in the executive branch and the officer's chief administrative 
4.12 	deputy;
4.13 	(4) solicitor general or deputy, assistant, or special assistant attorney general;
4.14 	(5) commissioner, deputy commissioner, or assistant commissioner of any state 
4.15 	department or agency as listed in section 15.01 or 15.06, or the state chief information 
4.16 	officer;
4.17 	(6) member, chief administrative officer, or deputy chief administrative officer of a 
4.18 	state board or commission that has either the power to adopt, amend, or repeal rules under 
4.19 	chapter 14, or the power to adjudicate contested cases or appeals under chapter 14;
4.20 	(7) individual employed in the executive branch who is authorized to adopt, amend, 
4.21 	or repeal rules under chapter 14 or adjudicate contested cases under chapter 14;
4.22 	(8) executive director of the State Board of Investment;
4.23 	(9) deputy of any official listed in clauses (7) and (8);
4.24 	(10) judge of the Workers' Compensation Court of Appeals;
4.25 	(11) administrative law judge or compensation judge in the State Office of 
4.26 	Administrative Hearings or unemployment law judge in the Department of Employment 
4.27 	and Economic Development;
4.28 	(12) member, regional administrator, division director, general counsel, or operations 
4.29 	manager of the Metropolitan Council;
4.30 	(13) member or chief administrator of a metropolitan agency;
4.31 	(14) director of the Division of Alcohol and Gambling Enforcement in the 
4.32 	Department of Public Safety;
4.33 	(15) member or executive director of the Higher Education Facilities Authority;
4.34 	(16) member of the board of directors or president of Enterprise Minnesota, Inc.;
5.1 	(17) member of the board of directors or executive director of the Minnesota State 
5.2 	High School League;
5.3 	(18) member of the Minnesota Ballpark Authority established in section 473.755;
5.4 	(19) citizen member of the Legislative-Citizen Commission on Minnesota Resources;
5.5 	(20) manager of a watershed district, or member of a watershed management 
5.6 	organization as defined under section 103B.205, subdivision 13;
5.7 	(21) supervisor of a soil and water conservation district;
5.8 	(22) director of Explore Minnesota Tourism;
5.9 	(23) citizen member of the Lessard-Sams Outdoor Heritage Council established in 
5.10 	section 97A.056; or
5.11 	(24) a citizen member of the Clean Water Council established in section 114D.30.; or
5.12 	(25) member or chief executive of the Minnesota Sports Facilities Authority 
5.13 	established in section 473J.07.

5.14 	Sec. 5. Minnesota Statutes 2010, section 297A.71, is amended by adding a subdivision 
5.15 	to read:
5.16 		Subd. 43.Building materials; football stadium. Materials and supplies used or 
5.17 	consumed in, and equipment incorporated into, the construction or improvement of the 
5.18 	football stadium and stadium infrastructure as defined in section 473J.03, subdivisions 8 
5.19 	and 10, are exempt. This subdivision expires one year after the date that the first National 
5.20 	Football League game is played in the stadium for materials, supplies, and equipment 
5.21 	used in the construction and equipping of the stadium, and five years after the issuance 
5.22 	of the first bonds under section 16A.965 for materials, supplies, and equipment used in 
5.23 	the public infrastructure.

5.24 	EFFECTIVE DATE. This section is effective the day following final enactment.

5.25 	Sec. 6. Minnesota Statutes 2010, section 352.01, subdivision 2a, is amended to read:
5.26 		Subd. 2a.Included employees. (a) "State employee" includes:
5.27 	(1) employees of the Minnesota Historical Society;
5.28 	(2) employees of the State Horticultural Society;
5.29 	(3) employees of the Minnesota Crop Improvement Association;
5.30 	(4) employees of the adjutant general whose salaries are paid from federal funds and 
5.31 	who are not covered by any federal civilian employees retirement system;
5.32 	(5) employees of the Minnesota State Colleges and Universities who are employed 
5.33 	under the university or college activities program;
6.1 	(6) currently contributing employees covered by the system who are temporarily 
6.2 	employed by the legislature during a legislative session or any currently contributing 
6.3 	employee employed for any special service as defined in subdivision 2b, clause (8);
6.4 	(7) employees of the legislature who are appointed without a limit on the duration 
6.5 	of their employment and persons employed or designated by the legislature or by a 
6.6 	legislative committee or commission or other competent authority to conduct a special 
6.7 	inquiry, investigation, examination, or installation;
6.8 	(8) trainees who are employed on a full-time established training program 
6.9 	performing the duties of the classified position for which they will be eligible to receive 
6.10 	immediate appointment at the completion of the training period;
6.11 	(9) employees of the Minnesota Safety Council;
6.12 	(10) any employees who are on authorized leave of absence from the Transit 
6.13 	Operating Division of the former Metropolitan Transit Commission and who are employed 
6.14 	by the labor organization which is the exclusive bargaining agent representing employees 
6.15 	of the Transit Operating Division;
6.16 	(11) employees of the Metropolitan Council, Metropolitan Parks and Open Space 
6.17 	Commission, Metropolitan Sports Facilities Commission, or Metropolitan Mosquito 
6.18 	Control Commission unless excluded under subdivision 2b or are covered by another 
6.19 	public pension fund or plan under section 473.415, subdivision 3;
6.20 	(12) judges of the Tax Court;
6.21 	(13) personnel who were employed on June 30, 1992, by the University of 
6.22 	Minnesota in the management, operation, or maintenance of its heating plant facilities, 
6.23 	whose employment transfers to an employer assuming operation of the heating plant 
6.24 	facilities, so long as the person is employed at the University of Minnesota heating plant 
6.25 	by that employer or by its successor organization;
6.26 	(14) personnel who are employed as seasonal employees in the classified or 
6.27 	unclassified service;
6.28 	(15) persons who are employed by the Department of Commerce as a peace officer 
6.29 	in the Insurance Fraud Prevention Division under section 45.0135 who have attained the 
6.30 	mandatory retirement age specified in section 43A.34, subdivision 4;
6.31 	(16) employees of the University of Minnesota unless excluded under subdivision 
6.32 	2b, clause (3);
6.33 	(17) employees of the Middle Management Association whose employment began 
6.34 	after July 1, 2007, and to whom section 352.029 does not apply; and
6.35 	(18) employees of the Minnesota Government Engineers Council to whom section 
6.36 	352.029 does not apply.; and
7.1 	(19) employees of the Minnesota Sports Facilities Authority.
7.2 	(b) Employees specified in paragraph (a), clause (13), are included employees under 
7.3 	paragraph (a) if employer and employee contributions are made in a timely manner in the 
7.4 	amounts required by section 352.04. Employee contributions must be deducted from 
7.5 	salary. Employer contributions are the sole obligation of the employer assuming operation 
7.6 	of the University of Minnesota heating plant facilities or any successor organizations to 
7.7 	that employer.

7.8 	Sec. 7. [473J.01] PURPOSE.
7.9 	The purpose of this chapter is to provide for the construction, financing, and 
7.10 	long-term use of a stadium and related stadium infrastructure as a venue for professional 
7.11 	football and a broad range of other civic, community, athletic, educational, cultural, 
7.12 	and commercial activities. The legislature finds and declares that the expenditure of 
7.13 	public money for this purpose is necessary and serves a public purpose, and that property 
7.14 	acquired by the Minnesota Sports Facilities Authority for the construction of the stadium 
7.15 	and related stadium infrastructure is acquired for a public use or public purpose under 
7.16 	chapter 117. The legislature further finds and declares that any provision in a lease or use 
7.17 	agreement with a professional football team that requires the team to play all of its home 
7.18 	games in a publicly funded stadium for the duration of the lease or use agreement, serves 
7.19 	a unique public purpose for which the remedies of specific performance and injunctive 
7.20 	relief are essential to its enforcement. The legislature further finds and declares that 
7.21 	government assistance to facilitate the presence of professional football provides to the 
7.22 	state of Minnesota and its citizens highly valued intangible benefits that are virtually 
7.23 	impossible to quantify and, therefore, not recoverable even if the government receives 
7.24 	monetary damages in the event of a team's breach of contract. Minnesota courts are, 
7.25 	therefore, charged with protecting those benefits through the use of specific performance 
7.26 	and injunctive relief as provided in this chapter and in the lease and use agreements.

7.27 	Sec. 8. [473J.03] DEFINITIONS.
7.28 		Subdivision 1.Application.  For the purposes of this chapter, the terms defined in 
7.29 	this section have the meanings given them, except as otherwise expressly provided or 
7.30 	indicated by the context.
7.31 		Subd. 2.Annual adjustment factor. "Annual adjustment factor" means for any 
7.32 	year, the increase, if any, in the amounts of the city of Minneapolis taxes, imposed under a 
7.33 	special law originally enacted in 1986, that are received by the commissioner of revenue 
7.34 	in the preceding year over the amount received in the year prior to the preceding year, 
8.1 	expressed as a percentage of the amount received in the year prior to the preceding year; 
8.2 	provided that the adjustment factor for any year must not be less than zero percent nor 
8.3 	more than five percent.
8.4 		Subd. 3.Authority.  "Authority" means the Minnesota Sports Facilities Authority 
8.5 	established under section 473J.07.
8.6 		Subd. 4.City.  "City" means the city of Minneapolis.
8.7 		Subd. 5.Net actual taxes. "Net actual taxes" means the amount of revenues 
8.8 	collected from the taxes in that year minus any refunds and costs of collection.
8.9 		Subd. 6.NFL. The "NFL" means the National Football League.
8.10 		Subd. 7.NFL team.  "NFL team" means the owner and operator of the NFL 
8.11 	professional football team known, as of the effective date of this chapter, as the Minnesota 
8.12 	Vikings or any team owned and operated by someone who purchases or otherwise takes 
8.13 	ownership or control of or reconstitutes the NFL team known as the Minnesota Vikings.
8.14 		Subd. 8.Stadium. "Stadium" means the stadium suitable for professional football 
8.15 	to be designed, constructed, and financed under this chapter. A stadium must have a roof 
8.16 	that covers the stadium, as set forth in section 473J.11, subdivision 3.
8.17 		Subd. 9.Stadium costs.  "Stadium costs" means the costs of acquiring land, the 
8.18 	costs of stadium infrastructure, and of designing, constructing, equipping, and financing a 
8.19 	stadium suitable for professional football.
8.20 		Subd. 10.Stadium infrastructure. "Stadium infrastructure" means plazas, parking 
8.21 	structures, rights of way, connectors, skyways and tunnels, and other such property, 
8.22 	facilities, and improvements, owned by the authority or determined by the authority to 
8.23 	facilitate the use and development of the stadium.
8.24 		Subd. 11.Stadium plaza. "Stadium plaza" means the open air portion of the 
8.25 	stadium adjacent to the stadium.
8.26 		Subd. 12.Stadium site.  "Stadium site" means all or portions of the current site of 
8.27 	the existing football stadium and adjacent areas, bounded generally by Park and Eleventh 
8.28 	Avenues and Third and Sixth Streets in the city of Minneapolis, the definitive boundaries 
8.29 	of which shall be determined by the authority and agreed to by the NFL team.

8.30 	Sec. 9. [473J.07] MINNESOTA SPORTS FACILITIES AUTHORITY.
8.31 		Subdivision 1.Established. The Minnesota Sports Facilities Authority is 
8.32 	established as a public body, corporate and politic, and political subdivision of the state. 
8.33 	The authority is not a joint powers entity or an agency or instrumentality of the city.
8.34 		Subd. 2.Membership. (a) The authority shall consist of seven members. 
9.1 	(b) The chair and four members shall be appointed by the governor, two of whom 
9.2 	must be from greater Minnesota. One member appointed by the governor shall serve until 
9.3 	December 31 of the third year following appointment and one member shall serve until 
9.4 	December 31 of the fourth year following appointment. Thereafter, members appointed by 
9.5 	the governor shall serve four-year terms, beginning January 1. Each member serves until a 
9.6 	successor is appointed and takes office. The chair serves at the pleasure of the governor.
9.7 	(c) The mayor of the city shall appoint two members to the authority. One member 
9.8 	appointed by the mayor of the city shall serve until December 31 of the third year 
9.9 	following appointment and one member shall serve until December 31 of the fourth year 
9.10 	following appointment. Thereafter, members appointed under this paragraph shall serve 
9.11 	four-year terms beginning January 1. Each member serves until a successor is appointed 
9.12 	and takes office. Members appointed under this paragraph may reside within the city and 
9.13 	may be appointed officials of a political subdivision.
9.14 	(d) The initial members of the authority must be appointed not later than 30 days 
9.15 	after the date of enactment of this chapter.
9.16 		Subd. 3.Compensation. The authority may compensate its members, other than the 
9.17 	chair, as provided in section 15.0575. The chair shall receive, unless otherwise provided 
9.18 	by other law, a salary in an amount fixed by the authority, and shall be reimbursed for 
9.19 	reasonable expenses to the same extent as a member.
9.20 		Subd. 4.Chair. The chair presides at all meetings of the authority, if present, and 
9.21 	performs all other assigned duties and functions. The authority may appoint from among 
9.22 	its members a vice-chair to act for the chair during the temporary absence or disability of 
9.23 	the chair, and any other officers the authority determines are necessary or convenient.
9.24 		Subd. 5.Removal.  A member, other than the chair, may be removed by the 
9.25 	appointing authority only for misfeasance, malfeasance, or nonfeasance in office, upon 
9.26 	written charges, and after an opportunity to be heard in defense of the charges.
9.27 		Subd. 6.Bylaws. The authority shall adopt bylaws to establish rules of procedure, 
9.28 	the powers and duties of its officers, and other matters relating to the governance of the 
9.29 	authority and the exercise of its powers. Except as provided in this section, the bylaws 
9.30 	adopted under this subdivision must be similar in form and substance to bylaws adopted 
9.31 	by the Minnesota Ballpark Authority pursuant to section 473.755.
9.32 		Subd. 7.Audit. The legislative auditor shall audit the books and accounts of the 
9.33 	authority once each year or as often as the legislative auditor's funds and personnel permit. 
9.34 	The authority shall pay the total cost of the audit pursuant to section 3.9741.
9.35 		Subd. 8.Executive director; employees. The authority may appoint an executive 
9.36 	director to serve as the chief executive officer of the authority. The executive director 
10.1 	serves at the pleasure of the authority and receives compensation as determined by the 
10.2 	authority. The executive director may be responsible for the operation, management, and 
10.3 	promotion of activities of the authority, as prescribed by the authority. The executive 
10.4 	director has the powers necessarily incident to the performance of duties required and 
10.5 	powers granted by the authority, but does not have authority to incur liability or make 
10.6 	expenditures on behalf of the authority without general or specific directions by the 
10.7 	authority, as shown by the bylaws or minutes of a meeting of the authority. The executive 
10.8 	director is responsible for hiring, supervision, and dismissal of all other employees of 
10.9 	the authority.
10.10 		Subd. 9.Web site. The authority shall establish a Web site for purposes of providing 
10.11 	information to the public concerning all actions taken by the authority. At a minimum, the 
10.12 	Web site must contain a current version of the authority's bylaws, notices of upcoming 
10.13 	meetings, minutes of the authority's meetings, and contact telephone, electronic mail, and 
10.14 	facsimile numbers for public comments.
10.15 		Subd. 10.Quorum; approvals. Any five members shall constitute a quorum for 
10.16 	the conduct of business and action may be taken upon the vote of a majority of members 
10.17 	present at a meeting duly called and held. During the design and construction stages of the 
10.18 	stadium, a six-sevenths vote of the authority is required for authority decisions related to 
10.19 	zoning, land use, exterior design of the stadium, related parking, the plaza area, and the 
10.20 	selection of the authority's lead representative during design and construction.

10.21 	Sec. 10. [473J.075] SPORTS FACILITIES OF THE AUTHORITY.
10.22 		Subdivision 1.General. This section describes the sports facilities that the 
10.23 	Minnesota Sports Facilities Authority controls, operates, and has responsibility over 
10.24 	pursuant to this chapter and as directed by law. 
10.25 		Subd. 2.Sports facilities.  (a) The following sports facilities are part of the 
10.26 	Minnesota Sports Facilities Authority:
10.27 	(1) the professional football stadium constructed under this chapter; and
10.28 	(2) any other sports facility constructed or acquired by the authority.
10.29 	(b) The Target Center in Minneapolis, Xcel Energy Center in St. Paul, and Target 
10.30 	Field in Minneapolis may join the facilities of the authority upon satisfaction of the 
10.31 	following factors and upon the approval of the authority:
10.32 	(1) the governing body of the facility must make the request to the authority to 
10.33 	become a sports facility under this section;
10.34 	(2) the governing body and the authority must negotiate an agreement with respect to 
10.35 	the transfer of all obligations and responsibilities, including, but not limited to, outstanding 
11.1 	debt, revenue sources, finance, funding, operations, equipment, repair and replacements, 
11.2 	capital improvements, reserves, contracts, and agreements;
11.3 	(3) the governing body and the  professional sports team who is the primary user of 
11.4 	the facility must make a joint recommendation to the authority;
11.5 	(4) the authority must find that the inclusion of a facility under the authority will not 
11.6 	have a negative impact on the authority, the general fund, or become an obligation of the 
11.7 	state of Minnesota; and
11.8 	(5) any other information or requirements requested by the authority.

11.9 	Sec. 11. [473J.09] POWERS, DUTIES OF THE AUTHORITY.
11.10 		Subdivision 1.Actions.  The authority may sue and be sued. The authority is a public 
11.11 	body and the stadium and stadium infrastructure are public improvements within the 
11.12 	meaning of chapter 562. The authority is a municipality within the meaning of chapter 466.
11.13 		Subd. 2.Acquisition of property.  The authority may acquire from any public or 
11.14 	private entity by lease, purchase, gift, or devise all necessary right, title, and interest in 
11.15 	and to real property, air rights, and personal property deemed necessary to the purposes 
11.16 	contemplated by this chapter. The authority may acquire, by the exercise of condemnation 
11.17 	powers under chapter 117, land, other real property, air rights, personal property, and other 
11.18 	right, title, and interest in property, within the stadium site and stadium infrastructure.
11.19 		Subd. 3.Disposition of property.  The authority may sell, lease, or otherwise 
11.20 	dispose of any real or personal property acquired by the authority that is no longer required 
11.21 	for accomplishment of the authority's purposes. The property may be sold in accordance 
11.22 	with the procedures provided by section 469.065, except subdivisions 6 and 7, to the 
11.23 	extent the authority deems it to be practical and consistent with this chapter. Title to the 
11.24 	stadium must not be transferred or sold by the authority prior to the effective date of 
11.25 	enactment of any legislation approving such transfer or sale.
11.26 		Subd. 4.Data practices; open meetings.  Except as otherwise provided in this 
11.27 	chapter, the authority is subject to chapters 13 and 13D.
11.28 		Subd. 5.Facility operation. The authority may develop, construct, equip, improve, 
11.29 	own, operate, manage, maintain, finance, and control the stadium, stadium infrastructure, 
11.30 	and related facilities constructed or acquired under this chapter, or may delegate such 
11.31 	duties through an agreement, subject to the rights and obligations transferred to and 
11.32 	assumed by the authority, the NFL team, other user, third-party manager, or program 
11.33 	manager, under the terms of a lease, use agreement, or development agreement.
11.34 		Subd. 6.Employees; contracts for services. The authority may employ persons 
11.35 	and contract for services necessary to carry out its functions, including the utilization of 
12.1 	employees and consultants retained by other governmental entities. The authority shall 
12.2 	enter into an agreement with the city regarding traffic control for the stadium.
12.3 		Subd. 7.Gifts, grants, loans. The authority may accept monetary contributions, 
12.4 	property, services, and grants or loans of money or other property from the United States, 
12.5 	the state, any subdivision of the state, any agency of those entities, or any person for any 
12.6 	of its purposes, and may enter into any agreement required in connection with the gifts, 
12.7 	grants, or loans. The authority shall hold, use, and dispose of the money, property, or 
12.8 	services according to the terms of the monetary contributions, grant, loan, or agreement.
12.9 		Subd. 8.Use agreements. The authority may lease, license, or enter into use 
12.10 	agreements and may fix, alter, charge, and collect rents, fees, and charges for the use, 
12.11 	occupation, and availability of part or all of any premises, property, or facilities under 
12.12 	its ownership, operation, or control for purposes that will provide athletic, educational, 
12.13 	cultural, commercial, or other entertainment, instruction, or activity for the citizens of 
12.14 	Minnesota and visitors. The use agreements may provide that the other contracting party 
12.15 	has exclusive use of the premises at the times agreed upon, as well as the right to retain 
12.16 	some or all revenues from ticket sales, suite licenses, concessions, advertising, naming 
12.17 	rights, NFL team designated broadcast/media, club seats, signage, and other revenues 
12.18 	derived from the stadium. The lease or use agreement with an NFL team must provide for 
12.19 	the payment by the NFL team of an agreed-upon portion of operating and maintenance 
12.20 	costs and expenses and provide other terms in which the authority and NFL team agree. In 
12.21 	no case may a lease or use agreement permit smoking in the stadium.
12.22 		Subd. 9.Research. The authority may conduct research studies and programs; 
12.23 	collect and analyze data; prepare reports, maps, charts, and tables; and conduct all 
12.24 	necessary hearings and investigations in connection with its functions.
12.25 		Subd. 10.Insurance. The authority may require any employee to obtain and file 
12.26 	with the authority an individual bond or fidelity insurance policy. The authority may 
12.27 	procure insurance in the amounts the authority considers necessary against liability of the 
12.28 	authority or its officers and employees for personal injury or death and property damage or 
12.29 	destruction, consistent with chapter 466, and against risks of damage to or destruction of 
12.30 	any of its facilities, equipment, or other property.
12.31 		Subd. 11.Exemption from Metropolitan Council review; Business Subsidy Act.
 12.32 	The acquisition and betterment of a stadium and stadium infrastructure by the authority 
12.33 	must be conducted pursuant to this chapter and are not subject to sections 473.165 and 
12.34 	473.173. Section 116J.994 does not apply to any transactions of the authority or other 
12.35 	governmental entity related to the stadium or stadium infrastructure or to any tenant or 
12.36 	other users of the stadium or stadium infrastructure.
13.1 		Subd. 12.Incidental powers. In addition to the powers expressly granted in this 
13.2 	chapter, the authority has all powers necessary or incidental thereto.
13.3 		Subd. 13.Legislative report. The authority must report to the chairs and ranking 
13.4 	minority members of the legislative committees with jurisdiction over state government 
13.5 	finance by January 15 of each year on the following: 
13.6 	(a) any recommended increases in the rate or dollar amount of tax;
13.7 	(b) any recommended increases in the debt of the authority; 
13.8 	(c) the overall work and role of the authority;
13.9 	(d) the authority's proposed operating and capital budgets; and
13.10 	(e) the authority's implementation of the operating and capital budgets.

13.11 	Sec. 12. [473J.10] LOCATION.
13.12 	The stadium to be constructed under this chapter shall be located at the stadium 
13.13 	site in the city of Minneapolis.

13.14 	Sec. 13. [473J.11] STADIUM DESIGN AND CONSTRUCTION.
13.15 		Subdivision 1.Contracts. (a) The design, development, and construction of the 
13.16 	stadium shall be a collaborative process between the authority and the NFL team. The 
13.17 	authority and the NFL team shall establish a process to reach consensus on key elements 
13.18 	of the stadium program and design, development, and construction.
13.19 	(b) Unless the authority and the NFL team agree otherwise:
13.20 	(1) the authority shall create a stadium design and construction group, including 
13.21 	representatives of the authority and the NFL team, to manage the design of the stadium 
13.22 	and oversee construction;
13.23 	(2) this group shall engage an owner's representative to act on behalf of the group. 
13.24 	The cost of the owner's representative shall be a stadium cost; and
13.25 	(3) the authority and the NFL team shall enter into a development administration 
13.26 	agreement providing for rights and responsibilities of the authority and the NFL team, the 
13.27 	design and construction group, and the owner's representative for design and construction 
13.28 	of the stadium, including, but not limited to, establishment of minimum design standards. 
13.29 	This development administration agreement shall provide for binding arbitration in 
13.30 	the event that the authority and the NFL team are unable to agree on minimum design 
13.31 	standards or other material aspects of the design.
13.32 	(c) The authority may enter into an agreement with the NFL team and any other 
13.33 	entity relating to the design, construction, financing, operation, maintenance, and use of 
13.34 	the stadium and related facilities and stadium infrastructure if in doing so, the tax-exempt 
14.1 	status of the bonds is not affected. The authority may contract for materials, supplies, and 
14.2 	equipment in accordance with section 471.345, except that the authority may employ or 
14.3 	contract with persons, firms, or corporations to perform one or more or all of the functions 
14.4 	of architect, engineer, construction manager, or program manager with respect to all or any 
14.5 	part of the design, construction, financing, operation, maintenance, and use of the stadium 
14.6 	and stadium infrastructure under the traditional separate design and build, integrated 
14.7 	design-build, construction manager at risk, or public/private partnership (P3) structures, or 
14.8 	a combination thereof if in doing so, the tax-exempt status of the bonds is not affected.
14.9 	(d) The authority and the NFL team shall prepare a request for proposals for one or 
14.10 	more of the functions described in paragraph (c). The request must be published in the 
14.11 	State Register and shall include, at a minimum, such requirements that are agreed to by 
14.12 	the authority and the NFL team. The authority and the NFL team may prequalify offerors 
14.13 	by issuing a request for qualifications, in advance of the request for proposals, and select a 
14.14 	short list of responsible offerors prior to discussions and evaluations.
14.15 	(e) As provided in the request for proposals, the authority, and the NFL team, may 
14.16 	conduct discussions and negotiations with responsible offerors in order to determine 
14.17 	which proposal is most advantageous to the authority and the NFL team and to negotiate 
14.18 	the terms of an agreement. In conducting discussions, there shall be no disclosure of any 
14.19 	information derived from proposals submitted by competing offerors and the content of all 
14.20 	proposals is nonpublic data under chapter 13 until such time as a notice to award a contract 
14.21 	is given by the authority. The agreement shall be subject to the approval of the NFL team.
14.22 	(f) Prior to the time the authority enters into a construction contract with a 
14.23 	construction manager or program manager certifying a maximum price and a completion 
14.24 	date as provided in paragraph (h), at the request of the NFL team, the authority may 
14.25 	authorize, such authorization not to be unreasonably withheld or delayed, the NFL team 
14.26 	to provide for management of the construction of the stadium and related stadium 
14.27 	infrastructure, in which event the NFL team must assume the role and responsibilities 
14.28 	of the authority for completion of construction in a manner consistent with the agreed 
14.29 	minimum design standards and design documents, subject to the terms of this act, 
14.30 	including responsibility for cost overruns.
14.31 	(g) For each contract for supplies, materials, labor, equipment, or services for 
14.32 	the construction of the stadium or infrastructure, the construction manager or program 
14.33 	manager shall require: (1) that the contract specify a guaranteed maximum price; and (2) 
14.34 	if the amount charged under the contract is less than the guaranteed maximum price, the 
14.35 	authority shall pay as follows: (i) half of the difference to the contract holder; and (ii) 
14.36 	half of the difference to the state.
15.1 	(h) The construction manager or program manager may enter into contracts with 
15.2 	contractors for labor, materials, supplies, and equipment for the construction of the 
15.3 	stadium and related stadium infrastructure through the process of public bidding, except 
15.4 	that the construction manager or program manager may, with the consent of the authority 
15.5 	or the NFL team if the NFL team has assumed responsibility for construction:
15.6 	(1) narrow the listing of eligible bidders to those which the construction manager 
15.7 	or program manager determines to possess sufficient expertise to perform the intended 
15.8 	functions;
15.9 	(2) award contracts to the contractors that the construction manager or program 
15.10 	manager determines provide the best value under a request for proposals as described in 
15.11 	section 16C.28, subdivision 1, paragraphs (a), clause (2), and (c), which are not required 
15.12 	to be the lowest responsible bidder; and 
15.13 	(3) for work the construction manager or program manager determines to be critical 
15.14 	to the completion schedule, award contracts on the basis of competitive proposals, or 
15.15 	perform work with its own forces without soliciting competitive bids if the construction 
15.16 	manager or program manager provides evidence of competitive pricing. 
15.17 	(i) The authority and the NFL team shall require that the construction manager 
15.18 	or program manager certify, before the contract is signed, a guaranteed maximum 
15.19 	construction price and completion date to the authority and post a performance bond 
15.20 	in an amount at least equal to 100 percent of the certified price or such other security 
15.21 	satisfactory to the authority, to cover any costs which may be incurred in excess of the 
15.22 	certified price including, but not limited to, costs incurred by the authority or loss of 
15.23 	revenues resulting from incomplete construction on the completion date. The authority 
15.24 	may secure surety bonds as provided in section 574.26, securing payment of just claims 
15.25 	in connection with all public work undertaken by the authority. Persons entitled to the 
15.26 	protection of the bonds may enforce them as provided in sections 574.28 to 574.32 and 
15.27 	are not entitled to a lien on any property of the authority under the provisions of sections 
15.28 	514.01 to 514.16. The construction of the stadium is a project as that term is defined in 
15.29 	section 177.42, subdivision 2, and is subject to the prevailing wage law under sections 
15.30 	177.41 to 177.43. The authority's contract with the construction manager or program 
15.31 	manager shall provide that if the construction manager's or program manager's fees 
15.32 	charged under the contract are less than the guaranteed maximum price, the authority shall 
15.33 	pay: (1) half of the difference to the contract holder; and (2) half of the difference to the 
15.34 	state. Costs or fees above the agreed guaranteed maximum price shall be the responsibility 
15.35 	of the construction manager or program manager.
16.1 		Subd. 2.Changes. Unless otherwise agreed to by the authority and the NFL team, 
16.2 	if either party requests an agreed upon change in minimum design standards, and this 
16.3 	change is responsible for requiring the project to exceed the stated budget, the requesting 
16.4 	party is liable for any cost overruns or associated liabilities.
16.5 		Subd. 3.Stadium design. The stadium and stadium infrastructure shall be designed 
16.6 	and constructed incorporating the following general program and design elements:
16.7 	(1) unless otherwise agreed to by the authority and the NFL team, the stadium 
16.8 	shall comprise approximately 1,500,000 square feet with approximately 65,000 seats, 
16.9 	expandable to 72,000, shall meet or exceed NFL program requirements, and include 
16.10 	approximately 150 suites and approximately 7,500 club seats or other such components as 
16.11 	agreed to by the authority and the NFL team;
16.12 	(2) space for NFL team-related exhibitions and sales, which shall include the 
16.13 	following: NFL team museum and Hall of Fame, retail merchandise and gift shop retail 
16.14 	venues, and themed concessions and restaurants;
16.15 	(3) year-round space for the NFL team administrative operations, sales, and 
16.16 	marketing, including a ticket office, team meeting space, locker, and training rooms;
16.17 	(4) space for administrative offices of the authority;
16.18 	(5) 2,000 parking spaces within one block of the stadium, connected by skyway or 
16.19 	tunnel to the stadium, and 500 parking spaces within two blocks of the stadium, with a 
16.20 	dedicated walkway on game days;
16.21 	(6) elements sufficient to provide community and civic uses as determined by the 
16.22 	authority; and
16.23 	(7) a roof that is fixed or retractable, provided that if the roof is retractable, it is 
16.24 	accomplished without any increase to the funding provided by the state or the city.
16.25 		Subd. 4.Cost overruns, savings. (a) Within the limits of paragraph (b), the 
16.26 	authority may accept financial obligations relating to cost overruns associated with 
16.27 	acquisition of the stadium site, stadium infrastructure, and stadium design, development, 
16.28 	and construction, provided that the authority shall not accept responsibility for cost 
16.29 	overruns and shall not be responsible for cost overruns if the authority has authorized the 
16.30 	NFL team to provide for management of construction of the stadium under subdivision 
16.31 	1. Cost savings or additional funds obtained by the authority or the NFL team for the 
16.32 	stadium or stadium infrastructure may be used first to fund additional stadium or stadium 
16.33 	infrastructure, as agreed to by the authority and the NFL team, if any, and then to fund 
16.34 	capital reserves.
16.35 	(b) The state share of stadium costs shall be limited to $373,000,000 for construction 
16.36 	of a new stadium, as permitted under section 16A.965. The city of Minneapolis share shall 
17.1 	be limited to a $150,000,000 contribution for construction, and the annual operating cost 
17.2 	and capital contributions contained under section 473J.13.

17.3 	Sec. 14. [473J.112] COMMEMORATIVE BRICKS.
17.4 	The authority shall sell commemorative bricks to be displayed at a prominent 
17.5 	location in the new stadium, for an amount to be determined by the authority. The 
17.6 	authority shall work with the commissioner to ensure that purchase of a brick is a tax 
17.7 	deductible donation on the part of the donating person or organization. Funds raised 
17.8 	through this section shall be appropriated to the commissioner of management and budget 
17.9 	for a grant to the Minnesota Sports Facilities Authority.

17.10 	Sec. 15. [473J.12] EMPLOYMENT.
17.11 		Subdivision 1.Hiring and recruitment. In the design, development, construction, 
17.12 	management, operation, maintenance and capital repair, replacement and improvement of 
17.13 	the stadium and stadium infrastructure, the authority shall make every effort to employ, 
17.14 	and cause the NFL team, the construction manager and other subcontractors, vendors, and 
17.15 	concessionaires to employ women and members of minority communities when hiring. 
17.16 	In addition, the authority shall contract with an employment assistance firm, preferably 
17.17 	minority-owned, to create an employment program to recruit, hire, and retain minorities 
17.18 	for the stadium facility. The authority shall hold a job fair and recruit and advertise at 
17.19 	Minneapolis Urban League, Sabathani, American Indian OIC, Youthbuild organizations, 
17.20 	and other such organizations. Further, goals for construction contracts to be awarded 
17.21 	to women- and minority-owned businesses will be in a percentage at least equal to the 
17.22 	minimum used for city of Minneapolis development projects, and the other construction 
17.23 	workforce will establish workforce utilization goals at least equal to current city goals and 
17.24 	include workers from city zip codes that have high rates of poverty and unemployment.
17.25 		Subd. 2.Other required agreements. The NFL team or the authority shall give 
17.26 	food, beverage, retail, and concession workers presently employed by the NFL team or 
17.27 	the Metropolitan Sports Facilities Commission or its vendors at the existing football 
17.28 	stadium the opportunity to continue their employment in comparable positions at the new 
17.29 	stadium. Workers who are presently represented under a collective bargaining agreement 
17.30 	may seek to continue such representation in the facility and designate such, or another 
17.31 	collective bargaining unit, as their representative.

17.32 	Sec. 16. [473J.13] STADIUM OPERATIONS; CAPITAL IMPROVEMENTS.
18.1 		Subdivision 1.Stadium operation. The stadium shall be operated in a first-class 
18.2 	manner, similar to and consistent with other comparable NFL stadiums, such as the 
18.3 	stadium in Indianapolis, Indiana, currently known as Lucas Oil Field. The authority and 
18.4 	the team will mutually agree on a third-party management company or individual to 
18.5 	manage the stadium and on certain major vendors to the stadium. The authority, with the 
18.6 	approval of the NFL team, may enter into an agreement with a program manager for 
18.7 	management of the stadium, for a maximum of 40 years.
18.8 		Subd. 2.Operating expenses. (a) The authority must pay or cause to be paid 
18.9 	all operating expenses of the stadium. The authority must require in the lease or use 
18.10 	agreement with the NFL team that the NFL team pay the authority, beginning January 1, 
18.11 	2016, or other date as mutually agreed upon by the parties, toward operating costs of the 
18.12 	stadium, $8,500,000 each year, increased by a three percent annual inflation rate.
18.13 	(b) Beginning January 1, 2016, or other date as mutually agreed upon by the 
18.14 	parties, and continuing through 2020, the state shall pay the authority operating expenses, 
18.15 	$6,000,000 each year. Any incremental increase between $6,000,000 as of the date of 
18.16 	enactment of this act and the additional amount resulting from the annual inflation rate, 
18.17 	as determined annually by the commissioner, must be paid annually by the NFL team. 
18.18 	The payment of $6,000,000 per year beginning in 2016 is a payment by the state, which 
18.19 	shall be repaid to the state, using funds as provided under section 297A.994, subdivision 
18.20 	4, paragraph (a), clause (4). After 2020, the state shall assume this payment, using funds 
18.21 	generated in accordance with the city of Minneapolis as specified under section 297A.994.
18.22 	(c) The authority may establish an operating reserve to cover operating expense 
18.23 	shortfalls and may accept funds from any source for deposit in the operating reserve. The 
18.24 	establishment or funding of an authority operating reserve must not decrease the amounts 
18.25 	required to be paid to the authority toward operating costs under this subdivision unless 
18.26 	agreed to by the authority.
18.27 	(d) The authority will be responsible for operating cost overruns.
18.28 	(e) After the joint selection of the third-party manager or program manager, the 
18.29 	authority may agree with a program manager or other third-party manager of the stadium 
18.30 	on a fixed cost operating, management, or employment agreement with operating 
18.31 	cost protections under which the program manager or third-party manager assumes 
18.32 	responsibility for stadium operating costs and shortfalls. The agreement with the manager 
18.33 	must require the manager to prepare an initial and ongoing operating plan and operating 
18.34 	budgets for approval by the authority in consultation with the NFL team. The manager 
18.35 	must agree to operate the stadium in accordance with the approved operating plan and 
18.36 	operating budget.
19.1 		Subd. 3.Public access. The authority will work to maximize access for public and 
19.2 	amateur sports, community, and civic events, and other public events in type and on terms 
19.3 	consistent with those currently held at the existing football stadium, as defined in section 
19.4 	473.551, subdivision 9. The authority may provide that these events have exclusive use 
19.5 	of the premises at agreed-upon times subject to the scheduling rights of the NFL team 
19.6 	under the lease or use agreement.
19.7 		Subd. 4.Capital improvements. (a) The authority shall establish a capital 
19.8 	reserve fund. The authority shall be responsible for making, or for causing others to 
19.9 	make, all capital repairs, replacements, and improvements for the stadium and stadium 
19.10 	infrastructure. The authority shall maintain, or cause others to maintain, the stadium and 
19.11 	stadium infrastructure in a safe, clean, attractive, and first-class manner so as to cause 
19.12 	them to remain in a condition comparable to that of other comparable NFL facilities of 
19.13 	similar design and age. The authority shall make, or cause others to make, all necessary 
19.14 	or appropriate repairs, renewals, and replacements, whether structural or nonstructural, 
19.15 	interior or exterior, ordinary or extraordinary, foreseen or unforeseen, in a prompt and 
19.16 	timely manner. In addition, the authority, with approval of the NFL team, may enter into 
19.17 	an agreement with a program manager to perform some or all of the responsibilities of the 
19.18 	authority in this subdivision and to assume and accept financial liability for the cost of 
19.19 	performing the responsibilities.
19.20 	(b) The NFL team must contribute $1,500,000 each year, beginning in 2016 or as 
19.21 	otherwise determined for the term of the lease or use agreement to the capital reserve fund, 
19.22 	increased by a three percent annual inflation rate.
19.23 	(c) The state shall contribute $1,500,000 each year, beginning in 2016 or as 
19.24 	otherwise determined for the term of the lease to the capital reserve fund. The contribution 
19.25 	under this paragraph shall be assumed by the state from 2016 through 2020, and repaid 
19.26 	to the state by the state using funds in accordance with section 297A.994, subdivision 4, 
19.27 	paragraph (a), clause (4). Any incremental increase between $1,500,000 as of the date of 
19.28 	enactment of this act and the additional amount resulting from the annual inflation rate, as 
19.29 	determined annually by the commissioner, must be paid annually by the NFL team.
19.30 	(d) The authority, with input from the NFL team, shall develop short-term and 
19.31 	long-term capital funding plans and shall use those plans to guide the future capital needs 
19.32 	of the stadium and stadium infrastructure. The authority shall make the final determination 
19.33 	with respect to funding capital needs. Any capital improvement proposed by the NFL 
19.34 	team intended primarily to provide revenue enhancements to the NFL team shall be paid 
19.35 	for by the NFL team, unless otherwise agreed to with the authority.
20.1 		Subd. 5.Game-day payments. In addition to operating expense contributions of 
20.2 	the NFL team under subdivision 2, the NFL team shall pay all NFL game day and other 
20.3 	NFL team-sponsored event expenses within the stadium and stadium plaza areas.
20.4 		Subd. 6.Cooperation with financing. The authority will cooperate with the 
20.5 	NFL team to facilitate the financing of the NFL team's contribution. Such agreement to 
20.6 	cooperate shall not require the authority to incur any additional costs or provide conduit 
20.7 	financing. The lease, license, and other transaction documents shall include provisions 
20.8 	customarily required by lenders in stadium financings.

20.9 	Sec. 17. [473J.14] STADIUM USER FEES.
20.10 		Subdivision 1.Fees imposed. The following fees are imposed at the stadium 
20.11 	constructed under this chapter:
20.12 	(1) a ten percent fee is on the sale or rental of suites for NFL team games and NFL 
20.13 	team events at the stadium;
20.14 	(2) a ten percent fee is on charges for parking within one-half mile of the stadium on 
20.15 	days that the NFL team plays at the stadium and on the days of any NFL team event; and 
20.16 	(3) a 6.875 percent memorabilia fee on NFL team memorabilia sold at the stadium. 
20.17 	For purposes of this section, "NFL team memorabilia" means items available for sale in 
20.18 	the stadium to members of the public that are sold under a license granted by the NFL 
20.19 	team or the NFL. NFL team memorabilia includes, but is not limited to, trading cards; 
20.20 	photographs; one-of-a-kind items related to sports figures, teams, or events; clothing; 
20.21 	sports event licensed items; and sports equipment.
20.22 		Subd. 2.Compensating use fee. If the fee is not paid under subdivision 1, a 
20.23 	compensating fee is imposed on the possession for the sale or use of the items. The rate of 
20.24 	the fee equals the rate in subdivision 1 and must be paid by the possessor or beneficiary of 
20.25 	the item.
20.26 		Subd. 3.Payment; annual return. The NFL team, other vendors of products 
20.27 	subject to a fee under subdivision 1, or possessors of items subject to a user fee under 
20.28 	subdivision 2 must remit the fees to the state at the same time and in the same manner 
20.29 	as provided for payment of tax under chapter 289A. Revenue from the fee imposed by 
20.30 	this chapter must be remitted to the commissioner of revenue in a form and manner 
20.31 	prescribed by the commissioner.
20.32 		Subd. 4.Administration. The audit, assessment, interest, appeal, refund, penalty, 
20.33 	enforcement, administrative, and collection provisions of chapters 270C and 297A, apply 
20.34 	to the fees imposed under this section.
21.1 		Subd. 5.Deposit of revenues. The commissioner of revenue shall deposit the 
21.2 	revenues from the user fees under this section in the general fund and credit them to the 
21.3 	general reserve account under section 297E.021, subdivision 4. 

21.4 	Sec. 18. [473J.15] CRITERIA AND CONDITIONS.
21.5 		Subdivision 1.Binding and enforceable. In developing the stadium and entering 
21.6 	into related contracts, the authority must follow and enforce the criteria and conditions in 
21.7 	this section, provided that a determination by the authority that those criteria or conditions 
21.8 	have been met under any agreement or otherwise shall be conclusive.
21.9 		Subd. 2.NFL team/private contribution; timing of expenditures. (a) The NFL 
21.10 	team/private contribution, including stadium builder license proceeds, for stadium costs 
21.11 	must be made in cash in the amount of at least $452,000,000.
21.12 	(b) Prior to the initial deposit of funds under this section, the team must provide 
21.13 	security or other credit worthiness in the amount of $50,000,000, subject to the satisfaction 
21.14 	of the authority. Prior to the first issuance of bonds under section 16A.965, the first portion 
21.15 	of the NFL team/private contribution in the amount of $50,000,000 must be deposited as 
21.16 	costs are incurred to the construction fund to pay for the initial stadium costs.
21.17 	(c) After the first $50,000,000 of stadium costs have been paid from the initial 
21.18 	NFL team/private contribution, state funds shall be deposited as costs are incurred to the 
21.19 	construction fund to pay for the next $50,000,000 of costs of the project. Prior to any state 
21.20 	funds being deposited in the construction fund, the NFL team must provide security or a 
21.21 	financing commitment reasonably satisfactory to the authority for the balance of the 
21.22 	required NFL team/private contribution and for payment of cost overruns if the NFL 
21.23 	team assumes responsibility for stadium construction under section 473J.11. Thereafter, 
21.24 	budgeted project costs shall be borne by the authority and the NFL team/private 
21.25 	contributions in amounts proportionate to their remaining funding commitments.
21.26 	(d) In the event the project terminates before the initial $100,000,000 in contributions 
21.27 	are expended by the parties under this subdivision, the parties shall be reimbursed in the 
21.28 	amounts they have deposited to the construction fund proportionate to project funding 
21.29 	percentages, in the amounts of 56 percent by the authority and 44 percent by the NFL 
21.30 	team/private contributions.
21.31 		Subd. 3.Lease or use agreements; 40-year term. The authority must enter into 
21.32 	a long-term lease or use agreement with the NFL team for the NFL team's use of the 
21.33 	stadium. The NFL team must agree to play all preseason, regular season, and postseason 
21.34 	home games at the stadium. Training facilities must remain in Minnesota during the term 
21.35 	of the lease or use agreement. The lease or use agreement must be for a term of at least 
22.1 	40 years from the date of substantial completion of the stadium for professional football 
22.2 	games. The lease or use agreement may provide options for the NFL team to extend the 
22.3 	term for up to four additional periods of five years. The lease or use agreement must 
22.4 	include terms for default, termination, and breach of the agreement. Recognizing that 
22.5 	the presence of professional football provides to the state of Minnesota and its citizens 
22.6 	highly valued, intangible benefits that are virtually impossible to quantify and, therefore, 
22.7 	not recoverable in the event of the NFL team owner's breach of contract, the lease and 
22.8 	use agreements must provide for specific performance and injunctive relief to enforce 
22.9 	provisions relating to use of the stadium for professional football and must not include 
22.10 	escape clauses or buyout provisions. The NFL team must not enter into or accept any 
22.11 	agreement or requirement with or from any entity that is inconsistent with the NFL team's 
22.12 	binding commitment to the 40-year term of the lease or use agreement or that would in 
22.13 	any manner dilute, interfere with, or negate the provisions of the lease or use agreement, 
22.14 	providing for specific performance or injunctive relief. The legislature conclusively 
22.15 	determines, as a matter of public policy, that the lease or use agreement, and any grant 
22.16 	agreement under this chapter that includes a specific performance clause:
22.17 	(1) explicitly authorizes specific performance as a remedy for breach;
22.18 	(2) is made for adequate consideration and upon terms which are otherwise fair 
22.19 	and reasonable;
22.20 	(3) has not been included through sharp practice, misrepresentation, or mistake;
22.21 	(4) if specifically enforced, does not cause unreasonable or disproportionate hardship 
22.22 	or loss to the NFL team or to third parties; and
22.23 	(5) involves performance in a manner and the rendering of services of a nature and 
22.24 	under circumstances that the beneficiary cannot be adequately compensated in damages.
22.25 		Subd. 4.Lease or use agreements; revenues, payments. A lease or use agreement 
22.26 	shall include rent and other fees and expenses to be paid by the NFL team. The authority 
22.27 	shall agree to provide in the lease or use agreement for the NFL team to receive all NFL 
22.28 	and team event related revenues, including, but not limited to, suite revenues, advertising, 
22.29 	concessions, signage, broadcast and media, and club seat revenue, except as provided by 
22.30 	section 473J.14. The agreement shall also provide that all naming rights to the stadium are 
22.31 	retained by the NFL team, subject to the approval of the name or names by the authority 
22.32 	consistent with those criteria set out in the lease or use agreement. The agreement shall 
22.33 	provide for the authority to receive all general ticket revenues and other event revenues 
22.34 	other than from NFL team games and other NFL team events agreed to by the authority.
22.35 		Subd. 5.Plaza naming rights. The state shall retain naming rights to the stadium 
22.36 	plaza. The amount of revenue generated through the naming rights of the stadium plaza 
23.1 	must be deposited into an account in the special revenue fund. On January 15 of each year, 
23.2 	the commissioner of management and budget must certify the amount in the account. The 
23.3 	amount certified attributable to plaza naming rights is appropriated to the commissioner 
23.4 	for a grant to the authority for amateur sports facilities under section 240A.12.
23.5 		Subd. 6.Notice of breach or default. Until 40 years from the date of stadium 
23.6 	completion, the NFL team must provide written notice to the authority not less than 180 
23.7 	days prior to any action, including any action imposed upon the NFL team by the NFL, 
23.8 	which would result in a breach or default of provisions of the lease or use agreements 
23.9 	required to be included under subdivision 3. If this notice provision is violated and the 
23.10 	NFL team has already breached or been in default under the required provisions, the 
23.11 	authority or the state of Minnesota may specifically enforce the lease or use agreement 
23.12 	and Minnesota courts shall fashion equitable remedies so that the NFL team fulfills the 
23.13 	conditions of the lease and use agreements.
23.14 		Subd. 7.Enforceable financial commitments. The authority must determine before 
23.15 	stadium construction begins that all public and private funding sources for construction, 
23.16 	operating expenses, and capital improvements and repairs of the stadium are included in 
23.17 	written agreements. The committed funds must be adequate to design, construct, furnish, 
23.18 	and equip the stadium, and pay projected operating expenses and the costs of capital 
23.19 	improvements and repairs during the term of the lease or use agreement with the NFL 
23.20 	team. The NFL team must provide the authority access to NFL team financial or other 
23.21 	information, which the authority deems necessary for such determination. Any financial 
23.22 	information obtained by the authority under this subdivision is nonpublic data under 
23.23 	section 13.02, subdivision 9.
23.24 		Subd. 8.Environmental requirements. The authority must comply with all 
23.25 	environmental requirements imposed by regulatory agencies for the stadium, site, and 
23.26 	structure, except as provided by section 473J.09, subdivision 11, or by section 473J.17.
23.27 		Subd. 9.Public share on sale of NFL team. The lease or use agreement must 
23.28 	provide that, if the NFL team is sold or an interest in the NFL team is sold after the 
23.29 	effective date of this chapter, a portion of the sale price must be used to pay down the 
23.30 	remaining debt service. If any portion remains after debt service is paid, that amount is 
23.31 	deposited in the general fund. The portion required to be deposited in the general fund is 
23.32 	25 percent of the amount in excess of the purchase price of the NFL team by the selling 
23.33 	owner or owners for the first ten years after commencement of stadium construction, 
23.34 	declining to 15 percent for the next ten years, and further declining to ten percent for 
23.35 	the next ten years. The agreement must provide exceptions for sales to members of the 
23.36 	owners' family and entities and trusts beneficially owned by family members, sales 
24.1 	to employees of equity interests aggregating up to ten percent, sales related to capital 
24.2 	infusions not distributed to the owners, and sales amongst existing owners not exceeding 
24.3 	20 percent equity interest in the NFL team.
24.4 		Subd. 10.Authority's access to NFL team financial information. A notice 
24.5 	provision for a material breach shall be agreed to between the authority and the NFL team. 
24.6 	In the event there is a material breach by the NFL team under the lease or use agreement, 
24.7 	the lease or use agreement must provide the authority access to audited financial statements 
24.8 	of the NFL team and other financial information that the authority deems necessary to 
24.9 	enforce the terms of any lease or use agreements. Any financial information obtained by 
24.10 	the authority under this subdivision is nonpublic data under section 13.02, subdivision 9.
24.11 		Subd. 11.NFL team name retained. The lease or use agreement must provide that 
24.12 	the NFL team and NFL will transfer to the state of Minnesota the Minnesota Vikings' 
24.13 	heritage and records, including the name, logo, colors, history, playing records, trophies, 
24.14 	and memorabilia in the event of relocation of the NFL team in violation of the lease 
24.15 	or use agreement.
24.16 		Subd. 12.Stadium design. (a) The authority and the NFL team will build a stadium 
24.17 	that is environmentally and energy efficient and will make an effort to build a stadium 
24.18 	that is eligible to receive the Leadership in Energy and Environmental Design (LEED) 
24.19 	certification or the Green Building Initiative Green Globes certification for environmental 
24.20 	design, and to the extent practicable, will strive to make the stadium design architecturally 
24.21 	significant.
24.22 	(b) The stadium design must, to the extent that the costs of following the guidelines 
24.23 	have a payback in energy savings in 30 years or less, follow sustainable building 
24.24 	guidelines established under section 16B.325. The authority and NFL team must work 
24.25 	with local utility companies to establish a base utility cost under the state energy codes 
24.26 	and calculate energy cost savings resulting from complying with the guidelines. The 
24.27 	authority and NFL team must fully utilize conservation improvement assistance under 
24.28 	section 216B.241 and other energy savings programs available to them.
24.29 	(c) The authority and the team must ensure that the stadium be constructed with 
24.30 	steel made in the USA.
24.31 		Subd. 13.Necessary approvals. The authority and the NFL team must secure 
24.32 	any necessary approvals to the terms of the lease and use agreement and the design and 
24.33 	construction plans for the stadium, including prior approval of the NFL.
24.34 		Subd. 14.Affordable access. The lease or use agreement must provide for an 
24.35 	agreed-upon number of affordable tickets to the professional sporting events held in the 
24.36 	stadium.
25.1 		Subd. 15.Stadium builder's licenses. The authority shall own and retain the 
25.2 	exclusive right to sell stadium builder's licenses in the stadium. The authority will retain 
25.3 	the NFL team to act as the authority's agent in marketing and selling such licenses.
25.4 		Subd. 16.NFL team-related entities. Subject to the prior approval of the authority, 
25.5 	which shall not be unreasonably withheld, any of the obligations by the NFL team may 
25.6 	be performed by the NFL team, a related entity, or a third party, and the NFL team, any 
25.7 	entity related to the NFL team or third party may receive any revenues to which the NFL 
25.8 	team is entitled hereunder; provided, however, the NFL team shall remain liable if any 
25.9 	obligations are assigned to a related entity or third party.
25.10 		Subd. 17.Television access. As a condition of receipt of public funds for a stadium, 
25.11 	the NFL team will agree to forgo any link between broadcast coverage of any regular 
25.12 	season or playoff game and the amount of attendance, ticket sales, or other stadium 
25.13 	revenues.

25.14 	Sec. 19. [473J.17] MUNICIPAL ACTIVITIES.
25.15 		Subdivision 1.Property acquisition and disposition. The city may, to the extent 
25.16 	legally permissible, acquire land, air rights, and other property interests within the 
25.17 	development area for the stadium site and stadium infrastructure and convey it to the 
25.18 	authority with or without consideration, prepare a site for development as a stadium, and 
25.19 	acquire and construct any related stadium infrastructure. To the extent property parcels or 
25.20 	interests acquired are more extensive than the stadium infrastructure requirements, the city 
25.21 	may sell or otherwise dispose of the excess.
25.22 		Subd. 2.Claims. Except as may be mutually agreed to by the city and the authority, 
25.23 	the city has no interest in or claim to any assets or revenues of the authority.
25.24 		Subd. 3.Environmental; planning and zoning. The authority is the responsible 
25.25 	governmental unit for an environmental impact statement for the stadium prepared under 
25.26 	section 116D.04, if an environmental impact statement is necessary. Notwithstanding 
25.27 	section 116D.04, subdivision 2b, and implementing rules: (1) the environmental 
25.28 	impact statement shall not be required to consider alternative stadium sites; and (2) the 
25.29 	environmental impact statement must be determined to be adequate before commencing 
25.30 	work on the foundation of the stadium, but the stadium and stadium infrastructure may 
25.31 	otherwise be started and all preliminary and final government decisions and actions may 
25.32 	be made and taken including, but not limited to, acquiring land; obtaining financing; 
25.33 	granting permits or other land use approvals; entering into grant, lease, or use agreements; 
25.34 	or preparing the site or related stadium infrastructure prior to a determination of the 
25.35 	adequacy of the environmental impact statement.
26.1 		Subd. 4.Local government expenditure. The city may make expenditures or 
26.2 	grants for other costs incidental and necessary to further the purposes of this chapter and 
26.3 	may, by agreement, reimburse in whole or in part, any entity that has granted, loaned, or 
26.4 	advanced funds to the city to further the purposes of this chapter. The city may reimburse 
26.5 	the authority or a local governmental entity or make a grant to the authority or such a 
26.6 	governmental unit or be reimbursed by the authority or local governmental entity for site 
26.7 	acquisition, preparation of the site for stadium development, and stadium infrastructure.
26.8 		Subd. 5.Municipal authority. The legislature intends that, except as expressly 
26.9 	limited herein, the city may acquire and develop stadium infrastructure, enter into contracts 
26.10 	with the authority and other governmental or nongovernmental entities, appropriate funds, 
26.11 	and make employees, consultants, and other revenues available for those purposes.
26.12 		Subd. 6.Stadium Implementation Committee; city review. In order to accomplish 
26.13 	the objectives of this act within the required time frame, it is necessary to establish an 
26.14 	alternative process for municipal land use and development review. It is hereby found 
26.15 	and declared that the construction of a stadium within the development area is consistent 
26.16 	with the adopted area plan, is the preferred stadium location, and is a permitted land use. 
26.17 	This subdivision establishes a procedure for all land use and development reviews and 
26.18 	approvals by the city of Minneapolis for the stadium and related stadium infrastructure 
26.19 	and supersedes all land use and development rules and restrictions and procedures 
26.20 	imposed by other law, charter, or ordinance, including without limitation section 15.99. 
26.21 	No later than 30 days after timely compliance of the city as provided in article 4, section 5, 
26.22 	of this act, the city of Minneapolis shall establish a stadium implementation committee 
26.23 	to make recommendations on the design plans submitted for the stadium, and stadium 
26.24 	infrastructure, and related improvements. The implementation committee must take 
26.25 	action to issue its recommendations within the time frames established in the planning 
26.26 	and construction timetable issued by the authority which shall provide for no less than 60 
26.27 	days for the committee's review. The recommendations of the implementation committee 
26.28 	shall be forwarded to the city of Minneapolis Planning Commission for an advisory 
26.29 	recommendation and then to the city council for final action in a single resolution, which 
26.30 	final action must be taken within 45 days of the submission of the recommendations to the 
26.31 	planning commission. The city council shall not impose any unreasonable conditions on 
26.32 	the recommendations of the implementation committee, nor take any action or impose 
26.33 	any conditions that will result in delay from the time frames established in the planning 
26.34 	and construction timetable or in additional overall costs. Failure of the city council to act 
26.35 	within the 45-day period shall be deemed to be approval. The authority may seek de novo 
26.36 	review in the district court of any city council action. The district court or any appellate 
27.1 	court shall expedite review to the maximum extent possible and timely issue relief, orders, 
27.2 	or opinions as necessary to give effect to the provisions and objectives in this act.

27.3 	Sec. 20. [473J.19] PROPERTY TAX EXEMPTION; SPECIAL ASSESSMENTS.
27.4 	Any real or personal property acquired, owned, leased, controlled, used, or occupied 
27.5 	by the authority for any of the purposes of this chapter, is acquired, owned, leased, 
27.6 	controlled, used, and occupied for public, governmental, and municipal purposes. The 
27.7 	stadium and stadium infrastructure are exempt from ad valorem taxation by the state 
27.8 	or any political subdivision of the state provided that the properties are subject to 
27.9 	special assessments levied by a political subdivision for a local improvement in amounts 
27.10 	proportionate to and not exceeding the special benefit received by the properties from the 
27.11 	improvement. No possible use of any of the properties in any manner different from their 
27.12 	use under this chapter may be considered in determining the special benefit received by 
27.13 	the properties. Notwithstanding section 272.01, subdivision 2, or 273.19, real or personal 
27.14 	property, which is subject to a lease or use agreement between the authority and another 
27.15 	person for uses related to the purposes of this chapter, including the operation of the 
27.16 	stadium and related parking facilities, is exempt from taxation regardless of the length of 
27.17 	the lease or use agreement or the characteristics of the entity leasing or using the property. 
27.18 	This section, insofar as it provides an exemption or special treatment, does not apply to 
27.19 	any real property that is leased for residential, business, or commercial development or to 
27.20 	a restaurant that is open for general business more than 200 days a year, or other purposes 
27.21 	different from those contemplated in this chapter.

27.22 	Sec. 21. [473J.25] METROPOLITAN SPORTS FACILITIES COMMISSION 
27.23 	ASSETS; LIABILITIES TO AUTHORITY.
27.24 		Subdivision 1.Authority expenses. The Metropolitan Sports Facilities Commission 
27.25 	shall pay the operating expenses of the authority including salaries, compensation, and 
27.26 	other personnel, office, equipment, consultant and any other costs, until the commission is 
27.27 	abolished pursuant to subdivision 3.
27.28 		Subd. 2.Transfer. Within 90 days of the enactment of this chapter, the Metropolitan 
27.29 	Sports Facilities Commission shall pay its outstanding obligations, settle its accounts, and 
27.30 	transfer its remaining assets, liabilities, and obligations to the authority, for its purposes.
27.31 		Subd. 3.Metropolitan Sports Facilities Commission abolished; interim powers 
27.32 	conferred on authority. Upon transfer to the authority of all remaining assets, liabilities, 
27.33 	and obligations of the Metropolitan Sports Facilities Commission, in subdivision 2, the 
27.34 	Metropolitan Sports Facilities Commission is abolished. When the remaining assets, 
28.1 	liabilities, and obligations of the Metropolitan Sports Facilities Commission have been 
28.2 	transferred to the authority and the commission has been abolished, the powers and duties 
28.3 	of the commission under sections 473.551 to 473.599, and any other law shall devolve 
28.4 	upon the authority, in addition to the powers and duties of the authority under this chapter, 
28.5 	until the first NFL home game is played at the stadium.
28.6 		Subd. 4.Employees. Upon transfer of ownership all persons employed by the 
28.7 	Metropolitan Sports Facilities Commission shall be transferred to the Minnesota Sports 
28.8 	Facilities Authority without loss of right or privilege. Nothing in this section shall be 
28.9 	construed to give any such person the right or privilege to continue in the same level or 
28.10 	classification of employment previously held. The Minnesota Sports Facilities Authority 
28.11 	may assign any such person to an employment level and classification which it deems 
28.12 	appropriate and desirable in accordance with its personnel code.
28.13 		Subd. 5.Conforming changes. The Metropolitan Sports Facilities Commission 
28.14 	shall submit a technical bill to the 2013 legislature making any cross-reference, 
28.15 	grammatical, or other conforming changes necessary as a result of this act. This bill 
28.16 	shall be submitted by February 12, 2013.

28.17 	Sec. 22. EFFECTIVE DATE.
 28.18 	Except as otherwise provided, this article is effective the day following final 
28.19 	enactment.

28.20 	ARTICLE 2
28.21 	STATE STADIUM FUNDING

28.22 	Section 1. [16A.965] STADIUM APPROPRIATION BONDS.
28.23 		Subdivision 1.Definitions. (a) The definitions in this subdivision and in chapter 
28.24 	473J apply to this section.
28.25 	(b) "Appropriation bond" means a bond, note, or other similar instrument of the state 
28.26 	payable during a biennium from one or more of the following sources:
28.27 	(1) money appropriated by law from the general fund, including, without limitation, 
28.28 	revenues deposited in the general fund as provided in articles 4 and 5, in any biennium for 
28.29 	debt service due with respect to obligations described in subdivision 2, paragraph (b);
28.30 	(2) proceeds of the sale of obligations described in subdivision 2, paragraph (b);
28.31 	(3) payments received for that purpose under agreements and ancillary arrangements 
28.32 	described in subdivision 2, paragraph (d); and
28.33 	(4) investment earnings on amounts in clauses (1) to (3).
29.1 	(c) "Debt service" means the amount payable in any biennium of principal, premium, 
29.2 	if any, and interest on appropriation bonds.
29.3 		Subd. 2.Authorization to issue appropriation bonds. (a) Subject to the 
29.4 	limitations of this subdivision, the commissioner may sell and issue appropriation bonds 
29.5 	of the state under this section for public purposes as provided by law, including, in 
29.6 	particular, the financing of all or a portion of the acquisition, construction, improving, 
29.7 	and equipping of the stadium project of the Minnesota Sports Facilities Authority as 
29.8 	provided by chapter 473J. Proceeds of the appropriation bonds must be credited to a 
29.9 	special appropriation stadium bond proceeds fund in the state treasury. Net income from 
29.10 	investment of the proceeds, as estimated by the commissioner, must be credited to the 
29.11 	special appropriation stadium bond proceeds fund.
29.12 	(b) Appropriation bonds may be sold and issued in amounts that, in the opinion of 
29.13 	the commissioner, are necessary to provide sufficient funds, not to exceed $523,000,000 
29.14 	net of costs of issuance, deposits for debt service reserve funds, and costs of credit 
29.15 	enhancement for achieving the purposes authorized as provided under paragraph (a), and 
29.16 	pay debt service, pay costs of issuance, make deposits to reserve funds, pay the costs 
29.17 	of credit enhancement, or make payments under other agreements entered into under 
29.18 	paragraph (d); provided, however, that appropriation bonds issued and unpaid shall not 
29.19 	exceed $625,000,000 in principal amount, excluding refunding bonds sold and issued 
29.20 	under subdivision 4.
29.21 	(c) Appropriation bonds may be issued from time to time in one or more series on 
29.22 	the terms and conditions the commissioner determines to be in the best interests of the 
29.23 	state, but the term on any series of appropriation bonds may not exceed 30 years. The 
29.24 	appropriation bonds of each issue and series thereof shall be dated and bear interest, 
29.25 	and may be includable in or excludable from the gross income of the owners for federal 
29.26 	income tax purposes.
29.27 	(d) At the time of, or in anticipation of, issuing the appropriation bonds, and at any 
29.28 	time thereafter, so long as the appropriation bonds are outstanding, the commissioner may 
29.29 	enter into agreements and ancillary arrangements relating to the appropriation bonds, 
29.30 	including, but not limited to, trust indentures, grant agreements, lease or use agreements, 
29.31 	operating agreements, management agreements, liquidity facilities, remarketing or 
29.32 	dealer agreements, letter of credit agreements, insurance policies, guaranty agreements, 
29.33 	reimbursement agreements, indexing agreements, or interest exchange agreements. Any 
29.34 	payments made or received according to the agreement or ancillary arrangement shall be 
29.35 	made from or deposited as provided in the agreement or ancillary arrangement. The 
30.1 	determination of the commissioner included in an interest exchange agreement that the 
30.2 	agreement relates to an appropriation bond shall be conclusive.
30.3 	(e) The commissioner may enter into written agreements or contracts relating to the 
30.4 	continuing disclosure of information necessary to comply with, or facilitate the issuance 
30.5 	of appropriation bonds in accordance with federal securities laws, rules, and regulations, 
30.6 	including Securities and Exchange Commission rules and regulations in Code of Federal 
30.7 	Regulations, title 17, section 240.15c 2-12. An agreement may be in the form of covenants 
30.8 	with purchasers and holders of appropriation bonds set forth in the order or resolution 
30.9 	authorizing the issuance of the appropriation bonds, or a separate document authorized 
30.10 	by the order or resolution.
30.11 	(f) The appropriation bonds are not subject to chapter 16C.
30.12 	(g) No person or organization who has a conflict of interest may enter into a contract 
30.13 	with the state to provide services to implement this section, including legal services and 
30.14 	bond underwriting services. For purposes of this section, a person or organization has a 
30.15 	conflict of interest if, at any time within the year prior to the effective date of this section:
30.16 	(1) the person or organization has or has had a financial interest in the NFL team; or
30.17 	(2) is or has been employed by the NFL team or has or has had a contract to provide 
30.18 	services to the NFL team.
30.19 		Subd. 3.Form; procedure. (a) Appropriation bonds may be issued in the form 
30.20 	of bonds, notes, or other similar instruments, and in the manner provided in section 
30.21 	16A.672. In the event that any provision of section 16A.672 conflicts with this section, 
30.22 	this section shall control.
30.23 	(b) Every appropriation bond shall include a conspicuous statement of the limitation 
30.24 	established in subdivision 6.
30.25 	(c) Appropriation bonds may be sold at either public or private sale upon such terms 
30.26 	as the commissioner shall determine are not inconsistent with this section and may be sold 
30.27 	at any price or percentage of par value. Any bid received may be rejected.
30.28 	(d) Appropriation bonds must bear interest at a fixed or variable rate.
30.29 	(e) Notwithstanding any other law, appropriation bonds issued under this section 
30.30 	shall be fully negotiable.
30.31 		Subd. 4.Refunding bonds. The commissioner from time to time may issue 
30.32 	appropriation bonds for the purpose of refunding any appropriation bonds then 
30.33 	outstanding, including the payment of any redemption premiums on the bonds, any 
30.34 	interest accrued or to accrue to the redemption date, and costs related to the issuance and 
30.35 	sale of the refunding bonds. The proceeds of any refunding bonds may, in the discretion of 
30.36 	the commissioner, be applied to the purchase or payment at maturity of the appropriation 
31.1 	bonds to be refunded, to the redemption of the outstanding appropriation bonds on any 
31.2 	redemption date, or to pay interest on the refunding bonds and may, pending application, 
31.3 	be placed in escrow to be applied to the purchase, payment, retirement, or redemption. Any 
31.4 	escrowed proceeds, pending such use, may be invested and reinvested in obligations that 
31.5 	are authorized investments under section 11A.24. The income earned or realized on the 
31.6 	investment may also be applied to the payment of the appropriation bonds to be refunded 
31.7 	or interest or premiums on the refunded appropriation bonds, or to pay interest on the 
31.8 	refunding bonds. After the terms of the escrow have been fully satisfied, any balance of the 
31.9 	proceeds and any investment income may be returned to the general fund or, if applicable, 
31.10 	the special appropriation stadium bond proceeds fund for use in any lawful manner. All 
31.11 	refunding bonds issued under this subdivision must be prepared, executed, delivered, and 
31.12 	secured by appropriations in the same manner as the appropriation bonds to be refunded.
31.13 		Subd. 5.Appropriation bonds as legal investments. Any of the following entities 
31.14 	may legally invest any sinking funds, money, or other funds belonging to them or under 
31.15 	their control in any appropriation bonds issued under this section:
31.16 	(1) the state, the investment board, public officers, municipal corporations, political 
31.17 	subdivisions, and public bodies;
31.18 	(2) banks and bankers, savings and loan associations, credit unions, trust companies, 
31.19 	savings banks and institutions, investment companies, insurance companies, insurance 
31.20 	associations, and other persons carrying on a banking or insurance business; and
31.21 	(3) personal representatives, guardians, trustees, and other fiduciaries.
31.22 		Subd. 6.No full faith and credit; state not required to make appropriations.
 31.23 	The appropriation bonds are not public debt of the state, and the full faith, credit, and 
31.24 	taxing powers of the state are not pledged to the payment of the appropriation bonds or to 
31.25 	any payment that the state agrees to make under this section. Appropriation bonds shall 
31.26 	not be obligations paid directly, in whole or in part, from a tax of statewide application 
31.27 	on any class of property, income, transaction, or privilege. Appropriation bonds shall be 
31.28 	payable in each fiscal year only from amounts that the legislature may appropriate for debt 
31.29 	service for any fiscal year, provided that nothing in this section shall be construed to 
31.30 	require the state to appropriate funds sufficient to make debt service payments with respect 
31.31 	to the appropriation bonds in any fiscal year. Appropriation bonds shall be canceled and 
31.32 	shall no longer be outstanding on the earlier of (1) the first day of a fiscal year for which 
31.33 	the legislature shall not have appropriated amounts sufficient for debt service, or (2) the 
31.34 	date of final payment of the principal of and interest on the appropriation bonds.
31.35 		Subd. 7.Appropriation of proceeds. The proceeds of appropriation bonds and 
31.36 	interest credited to the special appropriation stadium bond proceeds fund are appropriated 
32.1 	to the commissioner for payment of capital expenses, including capitalized interest, debt 
32.2 	service on outstanding indebtedness of the state, operating and capital reserves of the 
32.3 	authority, each as permitted by state and federal law, and nonsalary expenses incurred 
32.4 	in conjunction with the sale of the appropriation bonds, and such proceeds may be 
32.5 	granted, loaned, or otherwise provided to the authority for the public purpose provided 
32.6 	by subdivision 2, paragraph (a).
32.7 		Subd. 8.Appropriation for debt service and other purposes. The amount 
32.8 	needed to pay principal and interest on appropriation bonds issued under this section is 
32.9 	appropriated each year from the general fund to the commissioner, subject to repeal, 
32.10 	unallotment under section 16A.152, or cancellation otherwise pursuant to subdivision 6, 
32.11 	for deposit into the bond payment accounts established for such purpose in the special 
32.12 	appropriation stadium bond proceeds fund.
32.13 		Subd. 9.Waiver of immunity. The waiver of immunity by the state provided for 
32.14 	by section 3.751, subdivision 1, shall be applicable to the appropriation bonds and any 
32.15 	ancillary contracts to which the commissioner is a party.

32.16 	Sec. 2. APPROPRIATION.
 32.17 	(a) $6,000,000 plus an amount calculated in paragraph (c) is annually appropriated 
32.18 	from the general fund for fiscal years 2016 to 2021 to the commissioner of management 
32.19 	and budget for a grant to the Minnesota Sports Facilities Authority for the operating costs 
32.20 	of the stadium under Minnesota Statutes, chapter 473J.
32.21 	(b) $1,500,000 plus an amount calculated in paragraph (c) is annually appropriated 
32.22 	from the general fund for fiscal years 2016 to 2021 to the commissioner of management 
32.23 	and budget for a grant to the Minnesota Sports Facilities Authority for capital costs of the 
32.24 	stadium under Minnesota Statutes, chapter 473J.
32.25 	(c) The appropriations in paragraphs (a) and (b) are subject to an annual adjustment 
32.26 	specified in Minnesota Statutes, section 473J.03, subdivision 2.
32.27 	(d) If state appropriation bonds have not been issued under Minnesota Statutes, 
32.28 	section 16A.965, amounts not to exceed the increased revenues estimated by the 
32.29 	commissioner of management and budget under Minnesota Statutes, section 16A.965, 
32.30 	subdivision 8, paragraph (a), are appropriated to the commissioner of management and 
32.31 	budget to make grants to the Minnesota Sports Facilities Authority for stadium costs as 
32.32 	defined under Minnesota Statutes, section 473J.03, subdivision 9.
32.33 	(e) The amount deposited in the general fund by the commissioner of revenue under 
32.34 	Minnesota Statutes, section 297A.994, subdivision 3, clause (3), is annually appropriated 
33.1 	from the general fund for calendar years 2021 to 2056 to the commissioner of management 
33.2 	and budget for a grant to the Minnesota Sports Facilities Authority.
33.3 	(f) $2,700,000 is annually appropriated from the general fund for fiscal years 2014 
33.4 	to 2034 to the commissioner of management and budget for a grant to the city of St. Paul 
33.5 	for the operating or capital costs of existing or new sports facilities.

33.6 	ARTICLE 3
33.7 	MINNEAPOLIS CONVENTION CENTER

33.8 	Section 1. [297A.994] CITY OF MINNEAPOLIS SALES TAX; ALLOCATION 
33.9 	OF REVENUES.
33.10 		Subdivision 1.Scope. Notwithstanding the provisions of section 297A.99, 
33.11 	subdivision 11, the provisions of this section govern the remittance of the proceeds of 
33.12 	taxes imposed by the city of Minneapolis under the special law. 
33.13 		Subd. 2.Definitions. (a) For purposes of this section, the following definitions 
33.14 	apply.
33.15 	(b) "City" means the city of Minneapolis.
33.16 	(c) "Special law" means Laws 1986, chapter 396, sections 4 and 5, as amended.
33.17 	(d) "Tax" means the sales taxes imposed by the city under the special law.
33.18 	(e) The terms defined under section 473J.03 apply for purposes of this section.
33.19 		Subd. 3.General allocation of revenues. The commissioner shall remit the 
33.20 	revenues from the taxes, less the deductions listed in this subdivision, to the city at least 
33.21 	quarterly. The commissioner shall make the following deductions in the order listed 
33.22 	before distribution to the city:
33.23 	(1) refunds of any of these taxes due to taxpayers, if any;
33.24 	(2) the costs of collecting and administering the taxes, according to the applicable 
33.25 	law and agreements between the commissioner and the city. For revenues from the general 
33.26 	sales tax, the commissioner must deduct a proportionate share of the cost of collection, as 
33.27 	described in section 297A.99, subdivision 11; and
33.28 	(3) notwithstanding the provisions of any agreement between the commissioner and 
33.29 	the city providing for collection and remittance of these taxes, the commissioner must 
33.30 	deposit to the general fund the amounts specified in subdivision 4.
33.31 		Subd. 4.General fund allocations. The commissioner must retain and deposit to 
33.32 	the general fund the following amounts, as required by subdivision 3, clause (3):
33.33 	(1) for state bond debt service support beginning in calendar year 2021, and for each 
33.34 	calendar year thereafter through calendar year 2046, periodic amounts so that not later 
33.35 	than December 31, 2046, an aggregate amount equal to a present value of $150,000,000 
34.1 	has been deposited in the general fund. To determine aggregate present value, the 
34.2 	commissioner must consult with the commissioner of management and budget regarding 
34.3 	the present value dates, discount rate or rates, and schedules of annual amounts. The 
34.4 	present value date or dates must be based on the date or dates bonds are sold under section 
34.5 	16A.965, or the date or dates other state funds, if any, are deposited into the construction 
34.6 	fund. The discount rate or rates must be based on the true interest cost of the bonds 
34.7 	issued under section 16A.965, or an equivalent 30-year bond index, as determined by the 
34.8 	commissioner of management and budget. The schedule of annual amounts must be 
34.9 	certified to the commissioner by the commissioner of management and budget and the 
34.10 	finance officer of the city;
34.11 	(2) for the capital improvement reserve appropriation to the stadium authority 
34.12 	beginning in calendar year 2021, and for each calendar year thereafter through calendar 
34.13 	year 2056, an aggregate annual amount equal to the amount paid by the state for this 
34.14 	purpose in that calendar year under section 473J.13, subdivision 4;
34.15 	(3) for the operating expense appropriation to stadium authority beginning in 
34.16 	calendar year 2021, and for each calendar year thereafter through calendar year 2056, an 
34.17 	aggregate annual amount equal to the amount paid by the state for this purpose in that 
34.18 	calendar year under section 473J.13, subdivision 2;
34.19 	(4) for recapture of state advances for the city share of capital improvements and 
34.20 	operating expenses for calendar years 2016 through 2020 beginning in calendar year 2021, 
34.21 	and for each calendar year thereafter until all amounts under this clause have been paid, 
34.22 	proportionate amounts periodically until an aggregate amount equal to the present value of 
34.23 	all amounts paid by the state have been deposited in the general fund. To determine the 
34.24 	present value of the amounts paid by the state to the authority and the present value of 
34.25 	amounts deposited to the general fund under this clause, the commissioner shall consult 
34.26 	with the commissioner of management and budget regarding the present value dates, 
34.27 	discount rate or rates, and schedule of annual amounts. The present value dates must be 
34.28 	based on the dates state funds are paid to the authority, or the dates the commissioner 
34.29 	of revenue deposits taxes for purposes of this clause to the general fund. The discount 
34.30 	rates must be based on the reasonably equivalent cost of state funds as determined by 
34.31 	the commissioner of management and budget. The schedule of annual amounts must 
34.32 	be revised to reflect amounts paid under section 473J.13, subdivision 2, paragraph (b), 
34.33 	and subdivision 4, paragraph (c), and taxes deposited to the general fund from time to 
34.34 	time under this clause, and the schedule and revised schedules must be certified to the 
34.35 	commissioner by the commissioner of management and budget and the finance officer of 
35.1 	the city, and are transferred as accrued from the general fund for repayment of advances 
35.2 	made by the state to the authority; and
35.3 	(5) to capture increases in taxes imposed under the special law, for the benefit of the 
35.4 	stadium authority, beginning in calendar year 2013 and for each calendar year thereafter 
35.5 	through 2046, there shall be deposited to the general fund in proportionate periodic 
35.6 	payments in the following year, an amount equal to the following:
35.7 	(i) 50 percent of the difference, if any, by which the amount of the net annual taxes 
35.8 	for the previous year exceeds the sum of the net actual taxes in calendar year 2011 plus 
35.9 	$1,000,000, inflated at two percent per year since 2011, minus
35.10 	(ii) 25 percent of the difference, if any, by which the amount of the net annual taxes 
35.11 	for the preceding year exceeds the sum of the net actual taxes in calendar year 2011 plus 
35.12 	$3,000,000, inflated at two percent per year since 2011.

35.13 	Sec. 2. Laws 1986, chapter 396, section 4, as amended by Laws 1987, chapter 55, 
35.14 	sections 5 and 6, and Laws 2009, chapter 88, article 4, sections 11 and 12, is amended to 
35.15 	read:
35.16 	Sec. 4. SALES AND USE TAX.
 35.17 		Subdivision 1.Imposition. Notwithstanding Minnesota Statutes, section 477A.016, 
35.18 	or any other contrary provision of law, ordinance, or city charter, upon approval by 
35.19 	the city's board of estimate and taxation by a vote of at least five members, the city of 
35.20 	Minneapolis may by ordinance impose an additional sales tax of up to one-half of one 
35.21 	percent on sales taxable pursuant to Minnesota Statutes, chapter 297A that occur within 
35.22 	the city, and may also by ordinance impose an additional compensating use tax of up to 
35.23 	one-half of one percent on uses of property within the city, the sale of which would be 
35.24 	subject to the additional sales tax but for the fact such property was sold outside the city. 
35.25 	The tax may not be imposed on gross receipts from sales of intoxicating liquor that are 
35.26 	exempt from taxation under sections 297A.25 to 297A.257 or other provision of chapter 
35.27 	297A exempting sales of intoxicating liquor and use from taxation, including amendments 
35.28 	adopted after enactment of this act is imposed on the tax base defined in Minnesota 
35.29 	Statutes, section 297A.99, subdivision 4, and is subject to the credits and exclusions in 
35.30 	Minnesota Statutes, section 297A.99, subdivisions 7 and 8.
35.31 	For purposes of this subdivision, sales that occur within the city shall not include (a) 
35.32 	the sale of tangible personal property (i) which, without intermediate use, is shipped or 
35.33 	transported outside Minneapolis by the purchaser and thereafter used in a trade or business 
35.34 	or is stored, processed, fabricated or manufactured into, attached to or incorporated into 
35.35 	other tangible personal property transported or shipped outside Minneapolis and thereafter 
36.1 	used in a trade or business outside Minneapolis, and which is not thereafter returned to a 
36.2 	point within Minneapolis, except in the course of interstate or intrastate commerce (storage 
36.3 	shall not constitute intermediate use); or (ii) which the seller delivers to a common carrier 
36.4 	for delivery outside Minneapolis, places in the United States mail or parcel post directed 
36.5 	to the purchaser outside Minneapolis, or delivers to the purchaser outside Minneapolis by 
36.6 	means of the seller's own delivery vehicles, and which is not thereafter returned to a point 
36.7 	within Minneapolis, except in the course of interstate or intrastate commerce; or (b) sales 
36.8 	which would be described in clause (e) or (u) of Minnesota Statutes, section 297A.25, 
36.9 	subdivision 1 if the word "Minneapolis" were substituted for the words "Minnesota" 
36.10 	or "state of Minnesota" in such clauses. A tax may be imposed under this section only 
36.11 	if the taxes imposed under section 5 are imposed at the maximum rate allowed under 
36.12 	that section. The tax authorized by this section shall be imposed, until December 31, 
36.13 	2056. The tax may be imposed and may be adjusted periodically by the city council 
36.14 	in conformity with Minnesota Statutes, section 297A.99, subdivision 12, such that the 
36.15 	rate imposed, rounded to the next highest one-tenth of one percent, does not exceed the 
36.16 	rate estimated to be required to produceproduces revenue sufficient to finance the costs
36.17 	purposes described in subdivision subdivisions 3 and 4, and in Minnesota Statutes, section 
36.18 	297A.994, but in no case may the rate exceed one-half of one percent.
36.19 		Subd. 2.Enforcement; collection. (a) Except as provided in paragraph (b), 
36.20 	these taxes shall be subject to the same interest penalties and other rules imposed 
36.21 	under Minnesota Statutes, chapter 297A. The commissioner of revenue may enter into 
36.22 	appropriate agreements with the city to provide for collection of these taxes by the state 
36.23 	on behalf of the city. The commissioner may charge the city a reasonable fee for its 
36.24 	collection from the proceeds of any taxes, as provided in Minnesota Statutes, section 
36.25 	297A.99, subdivision 11.
36.26 	(b) A taxpayer located outside of the city of Minneapolis who collects use tax under 
36.27 	this section in an amount that does not exceed $10 in a reporting period is not required to 
36.28 	remit that tax until the amount of use tax collected is $10.
36.29 		Subd. 3.Use of property. Revenues received  by the city from the tax may only 
36.30 	be used:
36.31 	(1) to pay costs of collection;
36.32 	(2) (1) to pay or secure the payment of any principal of, premium or interest on 
36.33 	bonds issued in accordance with this act;
36.34 	(3) (2) to pay costs to acquire, design, equip, construct, improve, maintain, operate, 
36.35 	administer, or promote the convention center or related facilities, and other capital projects 
36.36 	or economic developments under subdivision 4, including financing costs related to them;
37.1 	(4) (3) to pay reasonable and appropriate costs determined by the city to replace 
37.2 	housing and the ice arena removed from the site; 
37.3 	(5) (4) to maintain reserves for the foregoing purposes deemed reasonable and 
37.4 	appropriate by the city; and
37.5 	(6) (5) to fund projects and for other purposes under subdivision 4.
37.6 	Money for replacement housing shall be made available by the city only for new 
37.7 	construction, conversion of nonresidential buildings, and for rehabilitation of vacant 
37.8 	residential structures, only if all of the units in the newly constructed building, converted 
37.9 	nonresidential building, or rehabilitated residential structure are to be used for replacement 
37.10 	housing.
37.11 		Subd. 4.Minneapolis downtown and neighborhood projects. (a) For revenues 
37.12 	collected in calendar years 2009 and 2010, to the extent that revenues from the tax 
37.13 	authorized in subdivision 1 exceeds the amount needed to fund the purposes in subdivision 
37.14 	3, the city may use the excess revenue to fund any city services. The total amount used in 
37.15 	both years for this purpose may not exceed the total amount of aid and credit reductions 
37.16 	under Minnesota Statutes, sections 273.1384 and 477A.011 to 477A.014 in calendar years 
37.17 	2008, 2009, and 2010 due to a governor's unallotment or due to statutory reductions.
37.18 	(b) Beginning with revenues collected in calendar year 2011, to the extent that 
37.19 	revenues from the tax taxes authorized in subdivision 1 exceeds or in section 5 exceed
37.20 	the amount needed to fund the purposes in subdivision 3, the city may use the excess 
37.21 	revenue in any year to fund capital projects to further residential, cultural, commercial, 
37.22 	and economic development in both downtown Minneapolis and the Minneapolis 
37.23 	neighborhoods, to fund other city expenditures in support of the capital projects, or 
37.24 	for other economic development, provided the city may direct excess revenue first to 
37.25 	convention center debt, operations, capital improvements, and marketing. The city may 
37.26 	issue bonds to fund any such projects or improvements using these taxes or any other 
37.27 	available city resources to finance or secure the bonds.

37.28 	Sec. 3. Laws 1986, chapter 396, section 5, as amended by Laws 2001, First Special 
37.29 	Session chapter 5, article 12, section 87, is amended to read:
37.30 	Sec. 5. LIQUOR, LODGING, AND RESTAURANT TAXES.
 37.31 	The city may, by resolution, levy in addition to taxes authorized by other law:
37.32 	(1) a sales tax of not more than three percent on the gross receipts on retail on-sales 
37.33 	of intoxicating liquor and fermented malt beverages described in section 473.592
37.34 	occurring in the when sold at licensed on-sale liquor establishments located within the
38.1 	downtown taxing area, provided that this tax may not be imposed if sales of intoxicating 
38.2 	liquor and fermented malt beverages are exempt from taxation under chapter 297A;
38.3 	(2) a sales tax of not more than three percent on the gross receipts from the furnishing 
38.4 	for consideration of lodging described in section 473.592 for a period of less than 30 days 
38.5 	at a hotel, motel, rooming house, tourist court, or trailer camp located within the city by a 
38.6 	hotel or motel which has more than 50 rooms available for lodging; the tax imposed under 
38.7 	this clause shall be at a rate that, when added to the sum of the rate of the sales tax imposed 
38.8 	under Minnesota Statutes, chapter 297A, the rate of the sales tax imposed under section 4, 
38.9 	and the rate of any other taxes on lodging in the city of Minneapolis, equals 13 percent; and
38.10 	(3) a sales tax of not more than three percent on the gross receipts on all sales of food 
38.11 	primarily for consumption on or off the premises by restaurants and places of refreshment 
38.12 	as defined by resolution of the city that occur within the downtown taxing area.
38.13 	The taxes authorized by this section shall be imposed until January 1, 2057. The taxes 
38.14 	shall be imposed and may be adjusted periodically by the city council such that the rates 
38.15 	imposed produce revenue sufficient, together with the tax imposed under section 4, to 
38.16 	finance the purposes described in Minnesota Statutes, section 297A.994, and section 
38.17 	4, subdivisions 3 and 4. These taxes shall be applied, first, as provided in Minnesota 
38.18 	Statutes, section 297A.994, subdivision 3, clauses (1) to (3), and then, solely to pay costs 
38.19 	of collection and to pay or, secure, maintain, and fund the payment of any principal of, 
38.20 	premium on, and interest on any bonds or any costs referred to other purposes in section 4, 
38.21 	subdivision 3 or 4. The commissioner of revenue may enter into appropriate agreements 
38.22 	with the city to provide for the collection of these taxes by the state on behalf of the city. 
38.23 	The commissioner may charge the city a reasonable fee for its collection from the proceeds 
38.24 	of any taxes. These taxes shall be subject to the same interest penalties and enforcement 
38.25 	provisions as the taxes imposed under section 473.592 Minnesota Statutes, chapter 297A.

38.26 	Sec. 4. CHARTER LIMITATIONS NOT TO APPLY.
 38.27 	Nothing in this act shall be construed to preempt, override, or waive any charter 
38.28 	provision, including any provisions requiring a referendum on professional NFL facility 
38.29 	financing. Any amounts expended, indebtedness or obligation incurred including, but 
38.30 	not limited to, the issuance of bonds, or actions taken by the city under this article for 
38.31 	the Target Center are not deemed an expenditure or other use of city resources within 
38.32 	the meaning of any law or charter limitation. The city may exercise any of its powers 
38.33 	under this article regarding the Target Center to spend, borrow, tax, or incur any form 
38.34 	of indebtedness or other obligation, for the improvement, including, but not limited to, 
38.35 	acquisition, development, construction, or betterment, of any public building, stadium, or 
39.1 	other capital improvement project, without regard to any charter limitation or provision. 
39.2 	Any tax exemption regarding the Target Center established under this article shall not be 
39.3 	deemed an expenditure or other use of city resources within the meaning of any charter 
39.4 	limitation.

39.5 	Sec. 5. EFFECTIVE DATE; LOCAL APPROVAL.
 39.6 	This article is effective the day after the governing body of the city of Minneapolis 
39.7 	and its chief clerical officer comply with Minnesota Statutes, section 645.021, subdivisions 
39.8 	2 and 3. Notwithstanding any law to the contrary, the city of Minneapolis and its chief 
39.9 	clerical officer have 30 calendar days following final enactment of this act, to comply with 
39.10 	Minnesota Statutes, section 645.021, subdivisions 2 and 3.

39.11 	Sec. 6. SEVERABILITY; SAVINGS.
 39.12 	If any part of this article is found to be invalid because it is in conflict with a 
39.13 	provision of the Minnesota Constitution or for any other reason, all other provisions of 
39.14 	this article shall remain valid and any rights, remedies, and privileges that have been 
39.15 	otherwise accrued by this article, shall remain in effect and may be proceeded with and 
39.16 	concluded under the provisions of this article.

39.17 	Sec. 7.  LOCAL SALES TAX REQUIREMENTS NOT TO APPLY.
 39.18 	 The taxes authorized under Laws 1986, chapter 396, sections 4 and 5, as amended, 
39.19 	are exempt from the requirements of Minnesota Statutes, section 297A.99, subdivisions 
39.20 	2 and 3.

39.21 	ARTICLE 4
39.22 	LAWFUL GAMBLING

39.23 	Section 1. Minnesota Statutes 2010, section 297E.01, subdivision 7, is amended to read:
39.24 		Subd. 7.Gambling product. "Gambling product" means bingo hard cards, bingo 
39.25 	paper sheets, or linked bingo paper sheets, or electronic linked bingo games; pull-tabs; 
39.26 	electronic pull-tab games; tipboards; paddle tickets and paddle ticket cards; raffle tickets; 
39.27 	or any other ticket, card, board, placard, device, or token that represents a chance, for 
39.28 	which consideration is paid, to win a prize.

39.29 	EFFECTIVE DATE. This section is effective July 1, 2012.

39.30 	Sec. 2. Minnesota Statutes 2010, section 297E.01, subdivision 8, is amended to read:
40.1 		Subd. 8.Gross receipts. "Gross receipts" means all receipts derived from lawful 
40.2 	gambling activity including, but not limited to, the following items:
40.3 	(1) gross sales of bingo hard cards and, paper sheets, linked bingo paper sheets, and 
40.4 	electronic linked bingo games before reduction for prizes, expenses, shortages, free plays, 
40.5 	or any other charges or offsets;
40.6 	(2) the ideal gross of pull-tab, electronic pull-tab games, and tipboard deals or games 
40.7 	less the value of unsold and defective tickets and before reduction for prizes, expenses, 
40.8 	shortages, free plays, or any other charges or offsets;
40.9 	(3) gross sales of raffle tickets and paddle tickets before reduction for prizes, 
40.10 	expenses, shortages, free plays, or any other charges or offsets;
40.11 	(4) admission, commission, cover, or other charges imposed on participants in 
40.12 	lawful gambling activity as a condition for or cost of participation; and
40.13 	(5) interest, dividends, annuities, profit from transactions, or other income derived 
40.14 	from the accumulation or use of gambling proceeds.
40.15 	Gross receipts does not include proceeds from rental under section 349.18, 
40.16 	subdivision 3.

40.17 	EFFECTIVE DATE. This section is effective July 1, 2012.

40.18 	Sec. 3. Minnesota Statutes 2010, section 297E.01, subdivision 9, is amended to read:
40.19 		Subd. 9.Ideal gross. "Ideal gross" means the total amount of receipts that would be 
40.20 	received if every individual ticket in the pull-tab, electronic pull-tab games or tipboard 
40.21 	deal, paddlewheel game, and raffle ticket was sold at its face value. In the calculation of 
40.22 	ideal gross and prizes, a free play ticket pull-tab or electronic pull-tab shall be valued at 
40.23 	face value. Ideal gross also means the total amount of receipts that would be received if 
40.24 	every bingo paper sheet, linked bingo paper sheet, and electronic linked bingo games 
40.25 	were sold at face value.

40.26 	EFFECTIVE DATE. This section is effective July 1, 2012.

40.27 	Sec. 4. Minnesota Statutes 2010, section 297E.02, subdivision 1, is amended to read:
40.28 		Subdivision 1.Imposition. A tax is imposed on all lawful gambling other than (1) 
40.29 	paper or electronic pull-tab deals or games; (2) tipboard deals or games; and (3) electronic 
40.30 	linked bingo; and (4) items listed in section 297E.01, subdivision 8, clauses (4) and (5), at 
40.31 	the rate of 8.5 percent on the gross receipts as defined in section 297E.01, subdivision 8, 
40.32 	less prizes actually paid. The tax imposed by this subdivision is in lieu of the tax imposed 
41.1 	by section 297A.62 and all local taxes and license fees except a fee authorized under 
41.2 	section 349.16, subdivision 8, or a tax authorized under subdivision 5.
41.3 	The tax imposed under this subdivision is payable by the organization or party 
41.4 	conducting, directly or indirectly, the gambling.

41.5 	EFFECTIVE DATE. This section is effective for games reported as played after 
41.6 	June 30, 2012.

41.7 	Sec. 5. Minnesota Statutes 2010, section 297E.02, subdivision 3, is amended to read:
41.8 		Subd. 3.Collection; disposition. (a) Taxes imposed by this section other than in 
41.9 	subdivision 4 are due and payable to the commissioner when the gambling tax return 
41.10 	is required to be filed. Taxes imposed by subdivision 4 are due and payable to the 
41.11 	commissioner on or before the last business day of the month following the month in 
41.12 	which the taxable sale was made. Distributors must file their monthly sales figures with 
41.13 	the commissioner on a form prescribed by the commissioner. Returns covering the taxes 
41.14 	imposed under this section must be filed with the commissioner on or before the 20th day 
41.15 	of the month following the close of the previous calendar month. The commissioner 
41.16 	may require that the returns be filed via magnetic media or electronic data transfer. The 
41.17 	proceeds, along with the revenue received from all license fees and other fees under 
41.18 	sections 349.11 to 349.191, 349.211, and 349.213, must be paid to the commissioner of 
41.19 	management and budget for deposit in the general fund.
41.20 	(b) The sales tax imposed by chapter 297A on the sale of the pull-tabs and tipboards 
41.21 	by the distributor is imposed on the retail sales price. The retail sale of pull-tabs or 
41.22 	tipboards by the organization is exempt from taxes imposed by chapter 297A and is 
41.23 	exempt from all local taxes and license fees except a fee authorized under section 349.16, 
41.24 	subdivision 8.
41.25 	(c) One-half of one percent of the revenue deposited in the general fund under 
41.26 	paragraph (a), is appropriated to the commissioner of human services for the compulsive 
41.27 	gambling treatment program established under section 245.98. One-half of one percent 
41.28 	of the revenue deposited in the general fund under paragraph (a), is appropriated to 
41.29 	the commissioner of human services for a grant to the state affiliate recognized by 
41.30 	the National Council on Problem Gambling to increase public awareness of problem 
41.31 	gambling, education and training for individuals and organizations providing effective 
41.32 	treatment services to problem gamblers and their families, and research relating to problem 
41.33 	gambling. Money appropriated by this paragraph must supplement and must not replace 
41.34 	existing state funding for these programs.

42.1 	EFFECTIVE DATE. This section is effective July 1, 2012.

42.2 	Sec. 6. Minnesota Statutes 2010, section 297E.02, subdivision 6, is amended to read:
42.3 		Subd. 6.Combined net receipts tax. In addition to the taxes imposed under 
42.4 	subdivisions subdivision 1 and 4, a tax is imposed on the combined receipts of the 
42.5 	organization. As used in this section, "combined net receipts" is the sum of the 
42.6 	organization's gross receipts from lawful gambling less gross receipts directly derived 
42.7 	from the conduct of paper bingo, raffles, and paddle wheels, as defined in section 297E.01, 
42.8 	subdivision 8, and less the net prizes actually paid, other than prizes actually paid for 
42.9 	paper bingo, raffles, and paddle wheels, for the fiscal year. The combined net receipts of 
42.10 	an organization are subject to a tax computed according to the following schedule:

42.11
42.12
42.13		If the combined net 
receipts for the fiscal year 
are:
		The tax is:
		
42.14		Not over $500,000$87,500
		zero9.10 percent
		
42.15		Over $500,000$87,500, 
				
42.16
42.17
42.18		but not over $700,000
$122,500
		1.7$7,963 plus 18.20 percent of the 
amount over $500,000$87,500, but 
not over $700,000$122,500
		
42.19		Over $700,000$122,500, 
				
42.20
42.21
42.22
42.23		but not over $900,000
$157,500
		$3,400$14,333 plus 3.427.30
percent of the amount over $700,000
$122,500, but not over $900,000
$157,500
		
42.24
42.25
42.26		Over $900,000$157,500
		$10,200$23,888 plus 5.136.40
percent of the amount over $900,000
$157,500

42.27 	EFFECTIVE DATE. This section is effective July 1, 2012.

42.28 	Sec. 7. Minnesota Statutes 2010, section 297E.02, is amended by adding a subdivision 
42.29 	to read:
42.30 		Subd. 6a.Unaccounted games. If a licensed distributor cannot account for a 
42.31 	pull-tab game, an electronic pull-tab game, a tipboard deal, paddletickets, an electronic 
42.32 	linked bingo game, bingo paper sheets, or linked bingo paper sheets, the distributor must 
42.33 	report the sheets or games to the commissioner as lost and remit a tax of six percent 
42.34 	on the ideal gross of the sheets or games.

42.35 	EFFECTIVE DATE. This section is effective July 1, 2012.

42.36 	Sec. 8. Minnesota Statutes 2010, section 297E.02, subdivision 7, is amended to read:
43.1 		Subd. 7.Untaxed gambling product. (a) In addition to penalties or criminal 
43.2 	sanctions imposed by this chapter, a person, organization, or business entity possessing or 
43.3 	selling a pull-tab, electronic pull-tab game or tipboard upon which the tax imposed by 
43.4 	subdivision 4 this chapter has not been paid is liable for a tax of six percent of the ideal 
43.5 	gross of each pull-tab, electronic pull-tab game,  or tipboard. The tax on a partial deal 
43.6 	must be assessed as if it were a full deal.
43.7 	(b) In addition to penalties and criminal sanctions imposed by this chapter, a person 
43.8 	not licensed by the board who conducts bingo, linked bingo, electronic linked bingo, 
43.9 	raffles, or paddle wheel games is liable for a tax of six percent of the gross receipts 
43.10 	from that activity.
43.11 	(c) The tax must be assessed by the commissioner. An assessment must be 
43.12 	considered a jeopardy assessment or jeopardy collection as provided in section 270C.36. 
43.13 	The commissioner shall assess the tax based on personal knowledge or information 
43.14 	available to the commissioner. The commissioner shall mail to the taxpayer at the 
43.15 	taxpayer's last known address, or serve in person, a written notice of the amount of tax, 
43.16 	demand its immediate payment, and, if payment is not immediately made, collect the tax 
43.17 	by any method described in chapter 270C, except that the commissioner need not await the 
43.18 	expiration of the times specified in chapter 270C. The tax assessed by the commissioner 
43.19 	is presumed to be valid and correctly determined and assessed. The burden is upon the 
43.20 	taxpayer to show its incorrectness or invalidity. The tax imposed under this subdivision 
43.21 	does not apply to gambling that is exempt from taxation under subdivision 2.

43.22 	EFFECTIVE DATE. This section is effective July 1, 2012.

43.23 	Sec. 9. Minnesota Statutes 2010, section 297E.02, subdivision 10, is amended to read:
43.24 		Subd. 10.Refunds; appropriation. A person who has, under this chapter, paid 
43.25 	to the commissioner an amount of tax for a period in excess of the amount legally due 
43.26 	for that period, may file with the commissioner a claim for a refund of the excess. The 
43.27 	amount necessary to pay the refunds under this subdivision and subdivision 4, paragraph 
43.28 	(d), is appropriated from the general fund to the commissioner.

43.29 	EFFECTIVE DATE. This section is effective July 1, 2012.

43.30 	Sec. 10. Minnesota Statutes 2010, section 297E.02, subdivision 11, is amended to read:
43.31 		Subd. 11.Unplayed or Defective pull-tabs or tipboards gambling products. If a 
43.32 	deal of pull-tabs or tipboards registered with the board or bar coded in accordance with this 
44.1 	chapter and chapter 349 and upon which the tax imposed by subdivision 4 has been paid is 
44.2 	returned unplayed to the distributor, the commissioner shall allow a refund of the tax paid.
44.3 	If a defective deal registered with the board or bar coded in accordance with this 
44.4 	chapter and chapter 349 and upon which the taxes have been paid is returned to the 
44.5 	manufacturer, the distributor shall submit to the commissioner of revenue certification 
44.6 	from the manufacturer that the deal was returned and in what respect it was defective. 
44.7 	The certification must be on a form prescribed by the commissioner and must contain 
44.8 	additional information the commissioner requires.
44.9 	The commissioner may require that no refund under this subdivision be made 
44.10 	unless the that all defective and returned pull-tabs or, tipboards have been, paddle tickets, 
44.11 	paper bingo sheets, and linked bingo paper sheets be set aside for inspection by the 
44.12 	commissioner's employee.
44.13 	Reductions in previously paid taxes authorized by this subdivision must be made 
44.14 	when and in the manner prescribed by the commissioner.

44.15 	EFFECTIVE DATE. This section is effective for games sold by a licensed 
44.16 	distributor after June 30, 2012.

44.17 	Sec. 11. [297E.021] SPECIAL ALLOCATION OF REVENUES.
44.18 		Subdivision 1.Application; revenues not pledged. The provisions of this 
44.19 	subdivision apply only after the issuance of appropriation bonds under section 16A.965, 
44.20 	subdivision 2, but do not constitute a pledge of available revenues as security for payment 
44.21 	of principal and interest on appropriation bonds issued under section 16A.965.
44.22 		Subd. 2.Determination of revenue increase. By March 15 of each fiscal year, 
44.23 	the commissioner of management and budget, in consultation with the commissioner, 
44.24 	shall determine the estimated increase in revenues received from taxes imposed under 
44.25 	this chapter over the estimated revenues under the February 2012 state budget forecast for 
44.26 	that fiscal year. For fiscal years after fiscal year 2015, the commissioner of management 
44.27 	and budget shall use the February 2012 state budget forecast for fiscal year 2015 as the 
44.28 	baseline. All calculations under this subdivision must be made net of estimated refunds 
44.29 	of the taxes required to be paid.
44.30 		Subd. 3.Definition of available revenues. For purposes of this section, "available 
44.31 	revenues" equals the amount determined under subdivision 2:
44.32 	(1) reduced by the following amounts paid for the fiscal year under:
44.33 	(i) the appropriation to principal and interest on appropriation bonds under section 
44.34 	16A.965, subdivision 8;
45.1 	(ii) the appropriation from the general fund to make operating expense payments 
45.2 	under section 473J.13, subdivision 2, paragraph (b);
45.3 	(iii) the appropriation for contributions to the capital reserve fund under section 
45.4 	473J.13, subdivision 4, paragraph (c);
45.5 	(iv) the appropriations under this article for administration and any successor 
45.6 	appropriation;
45.7 	(v) the reduction in revenues resulting from the property tax exemptions under 
45.8 	section 473J.19;
45.9 	(vi) the reduction in revenues resulting from the sales tax exemptions under section 
45.10 	297A.71, subdivisions 43 and 44; and
45.11 	(vii) the compulsive gambling appropriations under section 297E.02, subdivision 3, 
45.12 	paragraph (c), and any successor appropriation;
45.13 	(2) increased by the revenue deposited in the general fund under section 297A.994, 
45.14 	subdivision 4, clauses (1) to (3), for the fiscal year; and
45.15 	(3) increased by the revenue deposited in the special revenue fund through revenue 
45.16 	generated under section 473J.14.
45.17 		Subd. 4.Appropriation; general reserve account. To the extent the commissioner 
45.18 	determines that revenues are available under subdivision 3, for the fiscal year, those 
45.19 	amounts are appropriated from the general fund, in priority order:
45.20 	(1) for deposit in a general reserve account established by order of the commissioner 
45.21 	of management and budget. Amounts in this reserve are appropriated: (i) as necessary 
45.22 	for application against any shortfall in the amounts deposited to the general fund under 
45.23 	section 297A.994 or chapter 297E, relative to the February 2012 forecast; and (ii) to the 
45.24 	extent not required for item (i), 20 percent for early childhood education under Laws 2011, 
45.25 	First Special Session chapter 11, article 7, section 2, subdivision 8 as amended by Laws 
45.26 	2012, chapter 239, article 23, section 4; and (iii) after consultation with the legislative 
45.27 	commission on planning and fiscal policy, amounts in this reserve are appropriated 
45.28 	to the commissioner of management and budget for other uses related to the stadium 
45.29 	authorized under section 473J.03, subdivision 7, that the commissioner deems financially 
45.30 	prudent including reimbursements for capital and operating costs relating to the stadium, 
45.31 	refundings, and prepayment of debt. In no event, shall available revenues be pledged, nor 
45.32 	shall the appropriations of available revenues made by this section constitute a pledge 
45.33 	of available revenues as security for the prepayment of principal and interest on the 
45.34 	appropriation bonds under section 16A.965; and
45.35 	(2) to the extent not required for the purposes of clause (1), to the fund established in 
45.36 	section 136A.1271.

46.1 	Sec. 12. Minnesota Statutes 2010, section 297E.13, subdivision 5, is amended to read:
46.2 		Subd. 5.Untaxed gambling equipment. It is a gross misdemeanor for a person to 
46.3 	possess gambling equipment for resale in this state that has not been stamped or bar-coded 
46.4 	in accordance with this chapter and chapter 349 and upon which the taxes imposed by 
46.5 	chapter 297A or section 297E.02, subdivision 4, have not been paid. The director of 
46.6 	alcohol and gambling enforcement or the commissioner or the designated inspectors 
46.7 	and employees of the director or commissioner may seize in the name of the state of 
46.8 	Minnesota any unregistered or untaxed gambling equipment.

46.9 	EFFECTIVE DATE. This section is effective for actions occurring after June 
46.10 	30, 2012.

46.11 	Sec. 13. Minnesota Statutes 2010, section 349.12, subdivision 3b, is amended to read:
46.12 		Subd. 3b.Bar operation. "Bar operation" means a method of selling and redeeming 
46.13 	disposable gambling equipment by an employee of the lessor within a leased premises 
46.14 	which is licensed for the on-sale of alcoholic beverages where such sales and redemptions 
46.15 	are made by an employee of the lessor from a common area where food and beverages 
46.16 	are also sold.

46.17 	Sec. 14. Minnesota Statutes 2010, section 349.12, subdivision 3c, is amended to read:
46.18 		Subd. 3c.Bar bingo. "Bar bingo" is a bingo occasion conducted at a permitted 
46.19 	premises in an area where intoxicating liquor or 3.2 percent malt beverages are sold and 
46.20 	where the licensed organization conducts another form of lawful gambling. Bar bingo 
46.21 	does not include bingo games linked to other permitted premises.

46.22 	Sec. 15. Minnesota Statutes 2010, section 349.12, subdivision 5, is amended to read:
46.23 		Subd. 5.Bingo occasion. "Bingo occasion" means a single gathering or session at 
46.24 	which a series of one or more successive bingo games is played. There is no limit on the 
46.25 	number of games conducted during a bingo occasion but. A bingo occasion must not last 
46.26 	longer than eight consecutive hours, except that linked bingo games played on electronic 
46.27 	bingo devices may be played during regular business hours of the permitted premises, 
46.28 	and all play during this period is considered a bingo occasion for reporting purposes. For 
46.29 	permitted premises where the primary business is bingo, regular business hours shall be 
46.30 	defined as the hours between 8:00 a.m. and 2:00 a.m.

46.31 	Sec. 16. Minnesota Statutes 2010, section 349.12, subdivision 6a, is amended to read:
47.1 		Subd. 6a.Booth operation. "Booth operation" means a method of selling and 
47.2 	redeeming disposable gambling equipment by an employee of a licensed organization in 
47.3 	a premises the organization leases or owns where such sales and redemptions are made 
47.4 	within a separate enclosure that is distinct from areas where food and beverages are sold.

47.5 	Sec. 17. Minnesota Statutes 2010, section 349.12, subdivision 12a, is amended to read:
47.6 		Subd. 12a.Electronic bingo device. "Electronic bingo device" means an a 
47.7 	handheld and portable electronic device that:
47.8 	(1) is used by a bingo player to:
47.9 	(i) monitor bingo paper sheets or a facsimile of a bingo paper sheet when purchased 
47.10 	and played at the time and place of an organization's bingo occasion and which (1) 
47.11 	provides a means for bingo players to, or to play an electronic bingo game that is linked 
47.12 	with other permitted premises;
47.13 	(ii) activate numbers announced by a bingo caller; (2) compares or displayed, and 
47.14 	to compare the numbers entered by the player to the bingo faces previously stored in 
47.15 	the memory of the device; and 
47.16 	(3) identifies(iii) identify a winning bingo pattern. or game requirement; and
47.17 	(iv) play against other bingo players;
47.18 	(2) limits the play of bingo faces to 36 faces per game;
47.19 	(3) requires coded entry to activate play but does not allow the use of a coin, 
47.20 	currency, or tokens to be inserted to activate play;
47.21 	(4) may only be used for play against other bingo players in a bingo game;
47.22 	(5) has no additional function as an amusement or gambling device other than as an 
47.23 	electronic pull-tab game as defined under section 349.12, subdivision 12c;
47.24 	(6) has the capability to ensure adequate levels of security and internal controls; 
47.25 	(7) has the capability to permit the board to electronically monitor the operation of 
47.26 	the device and the internal accounting systems; and
47.27 	(8) has the capability to allow use by a player who is visually impaired.
47.28 	Electronic bingo device does not mean any device into which coin, currency, or tokens are 
47.29 	inserted to activate play.

47.30 	Sec. 18. Minnesota Statutes 2010, section 349.12, is amended by adding a subdivision 
47.31 	to read:
47.32 		Subd. 12b.Electronic pull-tab device. "Electronic pull-tab device" means a 
47.33 	handheld and portable electronic device that:
47.34 	(1) is used to play one or more electronic pull-tab games;
48.1 	(2) requires coded entry to activate play but does not allow the use of coin, currency, 
48.2 	or tokens to be inserted to activate play; 
48.3 	(3) requires that a player must activate or open each electronic pull-tab ticket and 
48.4 	have the option to open all tabs of a ticket at the same time or open each individual line, 
48.5 	row, or column of each electronic pull-tab ticket; 
48.6 	(4) maintains information pertaining to accumulated win credits that may be applied 
48.7 	to games in play or redeemed upon termination of play;
48.8 	(5) has no spinning symbols or other representations that mimic a video slot machine;
48.9 	(6) has no additional function as a gambling device other than as an electronic-linked 
48.10 	bingo game played on a device defined under section 349.12, subdivision 12a;
48.11 	(7) may incorporate an amusement game feature as part of the pull-tab game but 
48.12 	may not require additional consideration for that feature or award any prize, or other 
48.13 	benefit for that feature;
48.14 	(8) may have auditory or visual enhancements to promote or provide information 
48.15 	about the game being played, provided the component does not affect the outcome of 
48.16 	a game or display the results of a game;
48.17 	(9) maintains, on nonresettable meters, a printable, permanent record of all 
48.18 	transactions involving each device and electronic pull-tab games played on the device; 
48.19 	(10) is not a pull-tab dispensing device as defined under subdivision 32a; and
48.20 	(11) has the capability to allow use by a player who is visually impaired.

48.21 	Sec. 19. Minnesota Statutes 2010, section 349.12, is amended by adding a subdivision 
48.22 	to read:
48.23 		Subd. 12c.Electronic pull-tab game. "Electronic pull-tab game" means a pull-tab 
48.24 	game containing:
48.25 	(1) facsimiles of pull-tab tickets that are played on an electronic pull-tab device;
48.26 	(2) a predetermined, finite number of winning and losing tickets, not to exceed 
48.27 	7,500 tickets;
48.28 	(3) the same price for each ticket in the game;
48.29 	(4) a price paid by the player of not less than 25 cents per ticket;
48.30 	(5) tickets that are in conformance with applicable board rules for pull-tabs;
48.31 	(6) winning tickets that comply with prize limits under section 349.211;
48.32 	(7) a unique serial number that may not be regenerated;
48.33 	(8) an electronic flare that displays the game name, form number, predetermined, 
48.34 	finite number of tickets in the game, and prize tier; and
48.35 	(9) no spinning symbols or other representations that mimic a video slot machine.

49.1 	Sec. 20. Minnesota Statutes 2010, section 349.12, is amended by adding a subdivision 
49.2 	to read:
49.3 		Subd. 12d.Electronic pull-tab game system. "Electronic pull-tab game system" 
49.4 	means the equipment leased from a licensed distributor and used by a licensed organization 
49.5 	to conduct, manage, and record electronic pull-tab games, and to report and transmit the 
49.6 	game results as prescribed by the board and the Department of Revenue. The system must 
49.7 	provide security and access levels sufficient so that internal control objectives are met as 
49.8 	prescribed by the board. The system must contain a point-of-sale station.

49.9 	Sec. 21. Minnesota Statutes 2010, section 349.12, is amended by adding a subdivision 
49.10 	to read:
49.11 		Subd. 15b.501(c)(19) organization. "501(c)(19) organization" is an organization 
49.12 	exempt from the payment of federal income taxes under section 501(c)(19) of the Internal 
49.13 	Revenue Code.

49.14 	Sec. 22. Minnesota Statutes 2010, section 349.12, subdivision 18, is amended to read:
49.15 		Subd. 18.Gambling equipment. "Gambling equipment" means: gambling 
49.16 	equipment that is either disposable or permanent gambling equipment. 
49.17 	(a) Disposable gambling equipment includes the following:
49.18 	(1) bingo hard cards or paper sheets, including linked bingo paper sheets, devices for 
49.19 	selecting bingo numbers, electronic bingo devices,;
49.20 	(2) paper and electronic pull-tabs,;
49.21 	(3) jar tickets, paddle wheels, paddle wheel tables,;
49.22 	(4) paddle tickets, and paddle ticket cards,;
49.23 	(5) tipboards, and tipboard tickets,; and
49.24 	(6) promotional tickets that mimic a pull-tab or tipboard, pull-tab dispensing devices, 
49.25 	and programmable electronic devices that have no effect on the outcome of a game and 
49.26 	are used to provide a visual or auditory enhancement of a game.
49.27 	(b) Permanent gambling equipment includes the following:
49.28 	(1) devices for selecting bingo numbers;
49.29 	(2) electronic bingo devices;
49.30 	(3) electronic pull-tab devices;
49.31 	(4) pull-tab dispensing devices;
49.32 	(5) programmable electronic devices that have no effect on the outcome of a game 
49.33 	and are used to provide a visual or auditory enhancement of a game;
49.34 	(6) paddle wheels; and
50.1 	(7) paddle wheel tables.

50.2 	Sec. 23. Minnesota Statutes 2010, section 349.12, subdivision 25, is amended to read:
50.3 		Subd. 25.Lawful purpose. (a) "Lawful purpose" means one or more of the 
50.4 	following:
50.5 	(1) any expenditure by or contribution to a 501(c)(3) or festival organization, as 
50.6 	defined in subdivision 15a, provided that the organization and expenditure or contribution 
50.7 	are in conformity with standards prescribed by the board under section 349.154, which 
50.8 	standards must apply to both types of organizations in the same manner and to the same 
50.9 	extent;
50.10 	(2) a contribution to or expenditure for goods and services for an individual or 
50.11 	family suffering from poverty, homelessness, or disability, which is used to relieve the 
50.12 	effects of that suffering;
50.13 	(3) a contribution to a program recognized by the Minnesota Department of Human 
50.14 	Services for the education, prevention, or treatment of problem gambling;
50.15 	(4) a contribution to or expenditure on a public or private nonprofit educational 
50.16 	institution registered with or accredited by this state or any other state;
50.17 	(5) a contribution to an individual, public or private nonprofit educational institution 
50.18 	registered with or accredited by this state or any other state, or to a scholarship fund of a 
50.19 	nonprofit organization whose primary mission is to award scholarships, for defraying the 
50.20 	cost of education to individuals where the funds are awarded through an open and fair 
50.21 	selection process;
50.22 	(6) activities by an organization or a government entity which recognize military 
50.23 	service to the United States, the state of Minnesota, or a community, subject to rules 
50.24 	of the board, provided that the rules must not include mileage reimbursements in the 
50.25 	computation of the per diem reimbursement limit and must impose no aggregate annual 
50.26 	limit on the amount of reasonable and necessary expenditures made to support:
50.27 	(i) members of a military marching or color guard unit for activities conducted 
50.28 	within the state;
50.29 	(ii) members of an organization solely for services performed by the members at 
50.30 	funeral services;
50.31 	(iii) members of military marching, color guard, or honor guard units may be 
50.32 	reimbursed for participating in color guard, honor guard, or marching unit events within 
50.33 	the state or states contiguous to Minnesota at a per participant rate of up to $35 per diem; or
50.34 	(iv) active military personnel and their immediate family members in need of 
50.35 	support services;
51.1 	(7) recreational, community, and athletic facilities and activities intended primarily 
51.2 	for persons under age 21, provided that such facilities and activities do not discriminate on 
51.3 	the basis of gender and the organization complies with section 349.154, subdivision 3a;
51.4 	(8) payment of local taxes authorized under this chapter, taxes imposed by the 
51.5 	United States on receipts from lawful gambling, the taxes imposed by section 297E.02, 
51.6 	subdivisions 1, 4, 5, and 6, and the tax imposed on unrelated business income by section 
51.7 	290.05, subdivision 3;
51.8 	(9) payment of real estate taxes and assessments on permitted gambling premises 
51.9 	owned by the licensed organization paying the taxes, or wholly leased by a licensed 
51.10 	veterans organization under a national charter recognized under section 501(c)(19) of the 
51.11 	Internal Revenue Code;
51.12 	(10) a contribution to the United States, this state or any of its political subdivisions, 
51.13 	or any agency or instrumentality thereof other than a direct contribution to a law 
51.14 	enforcement or prosecutorial agency;
51.15 	(11) a contribution to or expenditure by a nonprofit organization which is a church 
51.16 	or body of communicants gathered in common membership for mutual support and 
51.17 	edification in piety, worship, or religious observances;
51.18 	(12) an expenditure for citizen monitoring of surface water quality by individuals 
51.19 	or nongovernmental organizations that is consistent with section 115.06, subdivision 4, 
51.20 	and Minnesota Pollution Control Agency guidance on monitoring procedures, quality 
51.21 	assurance protocols, and data management, provided that the resulting data is submitted 
51.22 	to the Minnesota Pollution Control Agency for review and inclusion in the state water 
51.23 	quality database;
51.24 	(13) a contribution to or expenditure on projects or activities approved by the 
51.25 	commissioner of natural resources for:
51.26 	(i) wildlife management projects that benefit the public at large;
51.27 	(ii) grant-in-aid trail maintenance and grooming established under sections 84.83 
51.28 	and 84.927, and other trails open to public use, including purchase or lease of equipment 
51.29 	for this purpose; and
51.30 	(iii) supplies and materials for safety training and educational programs coordinated 
51.31 	by the Department of Natural Resources, including the Enforcement Division;
51.32 	(14) conducting nutritional programs, food shelves, and congregate dining programs 
51.33 	primarily for persons who are age 62 or older or disabled;
51.34 	(15) a contribution to a community arts organization, or an expenditure to sponsor 
51.35 	arts programs in the community, including but not limited to visual, literary, performing, 
51.36 	or musical arts;
52.1 	(16) an expenditure by a licensed fraternal organization or a licensed veterans 
52.2 	organization for payment of water, fuel for heating, electricity, and sewer costs for:
52.3 	(i) up to 100 percent for a building wholly owned or wholly leased by and used as 
52.4 	the primary headquarters of the licensed veteran or fraternal organization; or
52.5 	(ii) a proportional amount subject to approval by the director and based on the 
52.6 	portion of a building used as the primary headquarters of the licensed veteran or fraternal 
52.7 	organization;
52.8 	(17) expenditure by a licensed veterans organization of up to $5,000 in a calendar 
52.9 	year in net costs to the organization for meals and other membership events, limited to 
52.10 	members and spouses, held in recognition of military service. No more than $5,000 can be 
52.11 	expended in total per calendar year under this clause by all licensed veterans organizations 
52.12 	sharing the same veterans post home;
52.13 	(18) payment of fees authorized under this chapter imposed by the state of Minnesota 
52.14 	to conduct lawful gambling in Minnesota;
52.15 	(19) a contribution or expenditure to honor an individual's humanitarian service 
52.16 	as demonstrated through philanthropy or volunteerism to the United States, this state, 
52.17 	or local community;
52.18 	(20) a contribution by a licensed organization to another licensed organization with 
52.19 	prior board approval, with the contribution designated to be used for one or more of the 
52.20 	following lawful purposes under this section: clauses (1) to (7), (11) to (15), (19), and (25);
52.21 	(21) an expenditure that is a contribution to a parent organization, if the parent 
52.22 	organization: (i) has not provided to the contributing organization within one year of the 
52.23 	contribution any money, grants, property, or other thing of value, and (ii) has received 
52.24 	prior board approval for the contribution that will be used for a program that meets one or 
52.25 	more of the lawful purposes under subdivision 7a;
52.26 	(22) an expenditure for the repair, maintenance, or improvement of real property 
52.27 	and capital assets owned by an organization, or for the replacement of a capital asset that 
52.28 	can no longer be repaired, with a fiscal year limit of five percent of gross profits from 
52.29 	the previous fiscal year, with no carryforward of unused allowances. The fiscal year is 
52.30 	July 1 through June 30. Total expenditures for the fiscal year may not exceed the limit 
52.31 	unless the board has specifically approved the expenditures that exceed the limit due to 
52.32 	extenuating circumstances beyond the organization's control. An expansion of a building 
52.33 	or bar-related expenditures are not allowed under this provision.
52.34 	(i) The expenditure must be related to the portion of the real property or capital asset 
52.35 	that must be made available for use free of any charge to other nonprofit organizations, 
53.1 	community groups, or service groups, orand is used for the organization's primary 
53.2 	mission or headquarters.
53.3 	(ii) An expenditure may be made to bring an existing building that the organization 
53.4 	owns into compliance with the Americans with Disabilities Act.
53.5 	(iii) An organization may apply the amount that is allowed under item (ii) to the 
53.6 	erection or acquisition of a replacement building that is in compliance with the Americans 
53.7 	with Disabilities Act if the board has specifically approved the amount. The cost of 
53.8 	the erection or acquisition of a replacement building may not be made from gambling 
53.9 	proceeds, except for the portion allowed under this item;
53.10 	(23) an expenditure for the acquisition or improvement of a capital asset with a cost 
53.11 	greater than $2,000, excluding real property, that will be used exclusively for lawful 
53.12 	purposes under this section if the board has specifically approved the amount;
53.13 	(24) an expenditure for the acquisition, erection, improvement, or expansion of real 
53.14 	property, if the board has first specifically authorized the expenditure after finding that the 
53.15 	real property will be used exclusively for lawful purpose under this section; or
53.16 	(25) an expenditure, including a mortgage payment or other debt service payment, 
53.17 	for the erection or acquisition of a comparable building to replace an organization-owned 
53.18 	building that was destroyed or made uninhabitable by fire or catastrophe or to replace an 
53.19 	organization-owned building that was taken or sold under an eminent domain proceeding. 
53.20 	The expenditure may be only for that part of the replacement cost not reimbursed by 
53.21 	insurance for the fire or catastrophe or compensation not received from a governmental 
53.22 	unit under the eminent domain proceeding, if the board has first specifically authorized 
53.23 	the expenditure.; or
53.24 	(26) a contribution to a 501(c)(19) organization that does not have an organization 
53.25 	license under section 349.16 and is not affiliated with the contributing organization, and 
53.26 	whose owned or leased property is not a permitted premises under section 349.165. The 
53.27 	501(c)(19) organization may only use the contribution for lawful purposes under this 
53.28 	subdivision or for the organization's primary mission. The 501(c)(19) organization may 
53.29 	not use the contribution for expansion of a building or for bar-related expenditures.
53.30 	(b) Expenditures authorized by the board under clauses (24) and (25) must be 
53.31 	51 percent completed within two years of the date of board approval; otherwise the 
53.32 	organization must reapply to the board for approval of the project. "Fifty-one percent 
53.33 	completed" means that the work completed must represent at least 51 percent of the value 
53.34 	of the project as documented by the contractor or vendor.
53.35 	(c) Notwithstanding paragraph (a), "lawful purpose" does not include:
54.1 	(1) any expenditure made or incurred for the purpose of influencing the nomination 
54.2 	or election of a candidate for public office or for the purpose of promoting or defeating a 
54.3 	ballot question;
54.4 	(2) any activity intended to influence an election or a governmental decision-making 
54.5 	process;
54.6 	(3) a contribution to a statutory or home rule charter city, county, or town by a 
54.7 	licensed organization with the knowledge that the governmental unit intends to use the 
54.8 	contribution for a pension or retirement fund; or
54.9 	(4) a contribution to a 501(c)(3) organization or other entity with the intent or effect 
54.10 	of not complying with lawful purpose restrictions or requirements.

54.11 	Sec. 24. Minnesota Statutes 2010, section 349.12, subdivision 25b, is amended to read:
54.12 		Subd. 25b.Linked bingo game provider. "Linked bingo game provider" means 
54.13 	any person who provides the means to link bingo prizes in a linked bingo game, who 
54.14 	provides linked bingo paper sheets to the participating organizations games, who provides 
54.15 	linked bingo prize management, and who provides the linked bingo game system.

54.16 	Sec. 25. Minnesota Statutes 2010, section 349.12, subdivision 25c, is amended to read:
54.17 		Subd. 25c.Linked bingo game system. "Linked bingo game system" means the 
54.18 	equipment used by the linked bingo provider to conduct, transmit, and track a linked 
54.19 	bingo game. The system must be approved by the board before its use in this state and 
54.20 	it must have dial-up or other the capability to permit the board to electronically monitor 
54.21 	its operation remotely. For linked electronic bingo games, the system includes electronic 
54.22 	bingo devices.

54.23 	Sec. 26. Minnesota Statutes 2010, section 349.12, subdivision 25d, is amended to read:
54.24 		Subd. 25d.Linked bingo prize pool. "Linked bingo prize pool" means the total 
54.25 	of all prize money that each participating organization has contributed to a linked bingo 
54.26 	game prize and includes any portion of the prize pool that is carried over from one 
54.27 	occasion game to another in a progressive linked bingo game.

54.28 	Sec. 27. Minnesota Statutes 2010, section 349.12, subdivision 29, is amended to read:
54.29 		Subd. 29.Paddle wheel. "Paddle wheel" means a vertical wheel marked off into 
54.30 	sections containing one or more numbers, and which, after being turned or spun, uses a 
54.31 	pointer or marker to indicate winning chances, and may only be used to determine a 
55.1 	winning number or numbers matching a winning paddle ticket purchased by a player. A 
55.2 	paddle wheel may be an electronic device that simulates a paddle wheel.

55.3 	Sec. 28. Minnesota Statutes 2010, section 349.12, subdivision 31, is amended to read:
55.4 		Subd. 31.Promotional ticket. A paper pull-tab ticket or paper tipboard ticket 
55.5 	created and printed by a licensed manufacturer with the words "no purchase necessary" and 
55.6 	"for promotional use only" and for which no consideration is given is a promotional ticket.

55.7 	Sec. 29. Minnesota Statutes 2010, section 349.12, subdivision 32, is amended to read:
55.8 		Subd. 32.Pull-tab. "Pull-tab" means a single folded or banded paper ticket or a,
55.9 	multi-ply card with perforated break-open tabs, or a facsimile of a paper pull-tab ticket 
55.10 	used in conjunction with an electronic pull-tab device, the face of which is initially 
55.11 	covered to conceal one or more numbers or symbols, and where one or more of each set of 
55.12 	tickets or, cards, or facsimiles has been designated in advance as a winner.

55.13 	Sec. 30. Minnesota Statutes 2010, section 349.13, is amended to read:
55.14 	349.13 LAWFUL GAMBLING.
55.15 	Lawful gambling is not a lottery or gambling within the meaning of sections 609.75
55.16 	to 609.76 if it is conducted under this chapter. A pull-tab dispensing device, electronic 
55.17 	bingo device, and electronic pull-tab device permitted under this chapter and by board 
55.18 	rule is not a gambling device within the meaning of sections 609.75 to 609.76 and chapter 
55.19 	299L. An electronic game device allowed under this chapter may not be a slot machine. 
55.20 	Electronic game devices, including, but not limited to, electronic bingo devices, electronic 
55.21 	paddle wheels, and electronic pull-tab devices authorized under this chapter, may only 
55.22 	be used in the conduct of lawful gambling permitted under this chapter and board rule 
55.23 	and may not display or simulate any other form of gambling or entertainment, except 
55.24 	as otherwise allowed under this chapter. 

55.25 	Sec. 31. Minnesota Statutes 2010, section 349.151, subdivision 4b, is amended to read:
55.26 		Subd. 4b.Pull-tab sales from dispensing devices. (a) The board may by rule 
55.27 	authorize but not require the use of pull-tab dispensing devices.
55.28 	(b) Rules adopted under paragraph (a):
55.29 	(1) must limit the number of pull-tab dispensing devices on any permitted premises 
55.30 	to three; and
55.31 	(2) must limit the use of pull-tab dispensing devices to a permitted premises which is 
55.32 	(i) a licensed premises for on-sales of intoxicating liquor or 3.2 percent malt beverages; 
56.1 	or (ii) a premises where bingo is conducted and admission is restricted to persons 18 
56.2 	years or older.
56.3 	(c) Notwithstanding rules adopted under paragraph (b), pull-tab dispensing devices 
56.4 	may be used in establishments licensed for the off-sale of intoxicating liquor, other than 
56.5 	drugstores and general food stores licensed under section 340A.405, subdivision 1.

56.6 	Sec. 32. Minnesota Statutes 2010, section 349.151, subdivision 4c, is amended to read:
56.7 		Subd. 4c.Electronic bingo devices. (a) The board may by rule authorize but not 
56.8 	require the use of electronic bingo devices.
56.9 	(b) Rules adopted under paragraph (a):
56.10 	(1) must limit the number of bingo faces that can be played using an electronic 
56.11 	bingo device to 36;
56.12 	(2) must require that an electronic bingo device be used with corresponding bingo 
56.13 	paper sheets or a facsimile, printed at the point of sale, as approved by the board;
56.14 	(3) must require that the electronic bingo device site system have dial-up capability 
56.15 	to permit the board to remotely monitor the operation of the device and the internal 
56.16 	accounting systems; and
56.17 	(4) must prohibit the price of a face played on an electronic bingo device from being 
56.18 	less than the price of a face on a bingo paper sheet sold at the same occasion.
56.19 	(b) The board, or the director if authorized by the board, may require the deactivation 
56.20 	of an electronic bingo device for violation of a law or rule and to implement any other 
56.21 	controls deemed necessary to ensure and maintain the integrity of electronic bingo devices 
56.22 	and the electronic bingo games played on the devices.

56.23 	Sec. 33. Minnesota Statutes 2010, section 349.151, is amended by adding a subdivision 
56.24 	to read:
56.25 		Subd. 4d.Electronic pull-tab devices and electronic pull-tab game system. (a) 
56.26 	The board may adopt rules it deems necessary to ensure the integrity of electronic pull-tab 
56.27 	devices, the electronic pull-tab games played on the devices, and the electronic pull-tab 
56.28 	game system necessary to operate them.
56.29 	(b) The board may not require an organization to use electronic pull-tab devices.
56.30 	(c) Before authorizing the lease or sale of electronic pull-tab devices and the 
56.31 	electronic pull-tab game system, the board shall examine electronic pull-tab devices 
56.32 	allowed under section 349.12, subdivision 12b. The board may contract for the 
56.33 	examination of the game system and electronic pull-tab devices and may require a working 
56.34 	model to be transported to locations the board designates for testing, examination, and 
57.1 	analysis. The manufacturer must pay all costs of any testing, examination, analysis, and 
57.2 	transportation of the model. The system must be approved by the board before its use in 
57.3 	the state and must have the capability to permit the board to electronically monitor its 
57.4 	operation and internal accounting systems. 
57.5 	(d) The board may require a manufacturer to submit a certificate from an independent 
57.6 	testing laboratory approved by the board to perform testing services, stating that the 
57.7 	equipment has been tested, analyzed, and meets the standards required in this chapter 
57.8 	and any applicable board rules.
57.9 	(e) The board, or the director if authorized by the board, may require the deactivation 
57.10 	of an electronic pull-tab device for violation of a law or rule and to implement any other 
57.11 	controls deemed necessary to ensure and maintain the integrity of electronic pull-tab 
57.12 	devices and the electronic pull-tab games played on the devices.

57.13 	Sec. 34. Minnesota Statutes 2010, section 349.155, subdivision 3, is amended to read:
57.14 		Subd. 3.Mandatory disqualifications. (a) In the case of licenses for manufacturers, 
57.15 	distributors, distributor salespersons, linked bingo game providers, and gambling 
57.16 	managers, the board may not issue or renew a license under this chapter, and shall revoke 
57.17 	a license under this chapter, if the applicant or licensee, or a director, officer, partner, 
57.18 	governor, or person in a supervisory or management position of the applicant or licensee:
57.19 	(1) has ever been convicted of a felony or a crime involving gambling;
57.20 	(2) has ever been convicted of (i) assault, (ii) a criminal violation involving the use 
57.21 	of a firearm, or (iii) making terroristic threats;
57.22 	(3) is or has ever been connected with or engaged in an illegal business;
57.23 	(4) owes $500 or more in delinquent taxes as defined in section 270C.72;
57.24 	(5) had a sales and use tax permit revoked by the commissioner of revenue within 
57.25 	the past two years; or
57.26 	(6) after demand, has not filed tax returns required by the commissioner of revenue. 
57.27 	The board may deny or refuse to renew a license under this chapter, and may revoke a 
57.28 	license under this chapter, if any of the conditions in this paragraph are applicable to 
57.29 	an affiliate or direct or indirect holder of more than a five percent financial interest in 
57.30 	the applicant or licensee.
57.31 	(b) In the case of licenses for organizations, the board may not issue a license under 
57.32 	this chapter, and shall revoke a license under this chapter, if the organization, or an officer 
57.33 	or member of the governing body of the organization:
57.34 	(1) has been convicted of a felony or gross misdemeanor involving theft or fraud; or
57.35 	(2) has ever been convicted of a crime involving gambling; or
58.1 	(3) has had a license issued by the board or director permanently revoked for 
58.2 	violation of law or board rule.

58.3 	Sec. 35. Minnesota Statutes 2010, section 349.155, subdivision 4, is amended to read:
58.4 		Subd. 4.License revocation, suspension, denial; censure. (a) The board may by 
58.5 	order (i) deny, suspend, revoke, or refuse to renew a license or premises permit, or (ii) 
58.6 	censure a licensee or applicant, if it finds that the order is in the public interest and that the 
58.7 	applicant or licensee, or a director, officer, partner, governor, person in a supervisory or 
58.8 	management position of the applicant or licensee, an employee eligible to make sales on 
58.9 	behalf of the applicant or licensee, or direct or indirect holder of more than a five percent 
58.10 	financial interest in the applicant or licensee:
58.11 	(1) has violated or failed to comply with any provision of this chapter or chapter 
58.12 	297E or 299L, or any rule adopted or order issued thereunder;
58.13 	(2) has filed an application for a license that is incomplete in any material respect, or 
58.14 	contains a statement that, in light of the circumstances under which it was made, is false, 
58.15 	misleading, fraudulent, or a misrepresentation;
58.16 	(3) has made a false statement in a document or report required to be submitted to 
58.17 	the board or the commissioner of revenue, or has made a false statement to the board, the 
58.18 	compliance review group, or the director;
58.19 	(4) has been convicted of a crime in another jurisdiction that would be a felony if 
58.20 	committed in Minnesota;
58.21 	(5) is permanently or temporarily enjoined by any gambling regulatory agency from 
58.22 	engaging in or continuing any conduct or practice involving any aspect of gambling;
58.23 	(6) has had a gambling-related license revoked or suspended, or has paid or been 
58.24 	required to pay a monetary penalty of $2,500 or more, by a gambling regulator in another 
58.25 	state or jurisdiction;
58.26 	(7) has been the subject of any of the following actions by the director of alcohol 
58.27 	and gambling enforcement or commissioner of public safety: (i) had a license under 
58.28 	chapter 299L denied, suspended, or revoked, (ii) been censured, reprimanded, has paid or 
58.29 	been required to pay a monetary penalty or fine, or (iii) has been the subject of any other 
58.30 	discipline by the director or commissioner;
58.31 	(8) has engaged in conduct that is contrary to the public health, welfare, or safety, or 
58.32 	to the integrity of gambling; or
58.33 	(9) based on past activities or criminal record poses a threat to the public interest or 
58.34 	to the effective regulation and control of gambling, or creates or enhances the dangers of 
58.35 	unsuitable, unfair, or illegal practices, methods, and activities in the conduct of gambling 
59.1 	or the carrying on of the business and financial arrangements incidental to the conduct of 
59.2 	gambling.
59.3 	(b) The revocation or suspension of an organization's license may not exceed a 
59.4 	period of ten years, including any revocation or suspension imposed by the board prior to 
59.5 	the effective date of this paragraph, except that:
59.6 	(1) any prohibition placed by the board on who may be involved in the conduct, 
59.7 	oversight, or management of the revoked organization's lawful gambling activity is 
59.8 	permanent; and
59.9 	(2) a revocation or suspension will remain in effect until any taxes, fees, and fines 
59.10 	that are delinquent have been paid by the organization to the satisfaction of the board.

59.11 	Sec. 36. Minnesota Statutes 2010, section 349.161, subdivision 1, is amended to read:
59.12 		Subdivision 1.Prohibited acts; licenses required. (a) No person may:
59.13 	(1) sell, offer for sale, or furnish gambling equipment for use within the state other 
59.14 	than for lawful gambling exempt or excluded from licensing, except to an organization 
59.15 	licensed for lawful gambling;
59.16 	(2) sell, offer for sale, or furnish gambling equipment for use within the state without 
59.17 	having obtained a distributor license or a distributor salesperson license under this section 
59.18 	except that an organization authorized to conduct bingo by the board may loan bingo 
59.19 	hard cards and devices for selecting bingo numbers to another organization authorized to 
59.20 	conduct bingo and a linked bingo game provider may provide electronic bingo devices for 
59.21 	linked electronic bingo games;
59.22 	(3) sell, offer for sale, or furnish gambling equipment for use within the state that is 
59.23 	not purchased or obtained from a manufacturer or distributor licensed under this chapter; or
59.24 	(4) sell, offer for sale, or furnish gambling equipment for use within the state that 
59.25 	has the same serial number as another item of gambling equipment of the same type sold 
59.26 	or offered for sale or furnished for use in the state by that distributor.
59.27 	(b) No licensed distributor salesperson may sell, offer for sale, or furnish gambling 
59.28 	equipment for use within the state without being employed by a licensed distributor or 
59.29 	owning a distributor license.
59.30 	(c) No distributor or distributor salesperson may also be licensed as a linked bingo 
59.31 	game provider under section 349.1635.

59.32 	Sec. 37. Minnesota Statutes 2010, section 349.161, subdivision 5, is amended to read:
60.1 		Subd. 5.Prohibition. (a) No distributor, distributor salesperson, or other employee 
60.2 	of a distributor, may also be a wholesale distributor of alcoholic beverages or an employee 
60.3 	of a wholesale distributor of alcoholic beverages.
60.4 	(b) No distributor, distributor salesperson, or any representative, agent, affiliate, or 
60.5 	other employee of a distributor, may: (1) be involved in the conduct of lawful gambling 
60.6 	by an organization; (2) keep or assist in the keeping of an organization's financial records, 
60.7 	accounts, and inventories; or (3) prepare or assist in the preparation of tax forms and other 
60.8 	reporting forms required to be submitted to the state by an organization.
60.9 	(c) No distributor, distributor salesperson, or any representative, agent, affiliate, 
60.10 	or other employee of a distributor may provide a lessor of gambling premises any 
60.11 	compensation, gift, gratuity, premium, or other thing of value.
60.12 	(d) No distributor, distributor salesperson, or any representative, agent, affiliate, or 
60.13 	other employee of a distributor may provide an employee or agent of the organization 
60.14 	any compensation, gift, gratuity, premium, or other thing of value greater than $25 per 
60.15 	organization in a calendar year.
60.16 	(e) No distributor, distributor salesperson, or any representative, agent, affiliate, or 
60.17 	other employee of a distributor may participate in any gambling activity at any gambling 
60.18 	site or premises where gambling equipment purchased or leased from that distributor or 
60.19 	distributor salesperson is being used in the conduct of lawful gambling.
60.20 	(f) No distributor, distributor salesperson, or any representative, agent, affiliate, or 
60.21 	other employee of a distributor may alter or modify any gambling equipment, except to 
60.22 	add a "last ticket sold" prize sticker for a paper pull-tab game.
60.23 	(g) No distributor, distributor salesperson, or any representative, agent, affiliate, or 
60.24 	other employee of a distributor may: (1) recruit a person to become a gambling manager 
60.25 	of an organization or identify to an organization a person as a candidate to become 
60.26 	gambling manager for the organization; or (2) identify for an organization a potential 
60.27 	gambling location.
60.28 	(h) No distributor or distributor salesperson may purchase or lease gambling 
60.29 	equipment for resale or lease to a person for use within the state from any person not 
60.30 	licensed as a manufacturer under section 349.163, except for gambling equipment 
60.31 	returned from an organization licensed under section 349.16, or exempt or excluded from 
60.32 	licensing under section 349.166.
60.33 	(i) No distributor or distributor salesperson may sell gambling equipment, except 
60.34 	gambling equipment identified as a promotional ticket, to any person for use in Minnesota 
60.35 	other than (i) a licensed organization or organization excluded or exempt from licensing, 
60.36 	or (ii) the governing body of an Indian tribe.
61.1 	(j) No distributor or distributor salesperson may sell or otherwise provide a paper
61.2 	pull-tab or tipboard deal with the symbol required by section 349.163, subdivision 5, 
61.3 	paragraph (d), visible on the flare to any person other than in Minnesota to a licensed 
61.4 	organization or organization exempt from licensing.

61.5 	Sec. 38. Minnesota Statutes 2010, section 349.162, subdivision 5, is amended to read:
61.6 		Subd. 5.Sales from facilities. (a) All gambling equipment purchased or possessed 
61.7 	by a licensed distributor for resale or lease to any person for use in Minnesota must, prior 
61.8 	to the equipment's resale or lease, be unloaded into a storage facility located in Minnesota 
61.9 	which the distributor owns or leases; and which has been registered, in advance and in 
61.10 	writing, with the Division of Alcohol and Gambling Enforcement as a storage facility of 
61.11 	the distributor. All unregistered gambling equipment and all unaffixed registration stamps 
61.12 	owned by, or in the possession of, a licensed distributor in the state of Minnesota shall be 
61.13 	stored at a storage facility which has been registered with the Division of Alcohol and 
61.14 	Gambling Enforcement. No gambling equipment may be moved from the facility unless 
61.15 	the gambling equipment has been first registered with the board or the Department of 
61.16 	Revenue. A distributor must notify the board of the method that it will use to sell and 
61.17 	transfer electronic pull-tab games to licensed organizations, and must receive approval of 
61.18 	the board before implementing or making changes to the approved method.
61.19 	(b) Notwithstanding section 349.163, subdivisions 5, 6, and 8, a licensed 
61.20 	manufacturer may ship into Minnesota approved or unapproved gambling equipment if the 
61.21 	licensed manufacturer ships the gambling equipment to a Minnesota storage facility that 
61.22 	is: (1) owned or leased by the licensed manufacturer; and (2) registered, in advance and 
61.23 	in writing, with the Division of Alcohol and Gambling Enforcement as a manufacturer's 
61.24 	storage facility. No gambling equipment may be shipped into Minnesota to the 
61.25 	manufacturer's registered storage facility unless the shipment of the gambling equipment 
61.26 	is reported to the Department of Revenue in a manner prescribed by the department. 
61.27 	No gambling equipment may be moved from the storage facility unless the gambling 
61.28 	equipment is sold to a licensed distributor and is otherwise in conformity with this chapter, 
61.29 	is shipped to an out-of-state site and the shipment is reported to the Department of 
61.30 	Revenue in a manner prescribed by the department, or is otherwise sold and shipped as 
61.31 	permitted by board rule. A manufacturer must notify the board of the method that it will 
61.32 	use to sell and transfer electronic pull-tab games to licensed distributors, and must receive 
61.33 	approval of the board before implementing or making changes to the approved method.
61.34 	(c) All storage facilities owned, leased, used, or operated by a licensed distributor 
61.35 	or manufacturer may be entered upon and inspected by the employees of the Division of 
62.1 	Alcohol and Gambling Enforcement, the Division of Alcohol and Gambling Enforcement 
62.2 	director's authorized representatives, employees of the Gambling Control Board or its 
62.3 	authorized representatives, employees of the Department of Revenue, or authorized 
62.4 	representatives of the director of the Division of Special Taxes of the Department of 
62.5 	Revenue during reasonable and regular business hours. Obstruction of, or failure to 
62.6 	permit, entry and inspection is cause for revocation or suspension of a manufacturer's or 
62.7 	distributor's licenses and permits issued under this chapter.
62.8 	(d) Unregistered gambling equipment found at any location in Minnesota other than 
62.9 	the manufacturing plant of a licensed manufacturer or a registered storage facility are 
62.10 	contraband under section 349.2125. This paragraph does not apply:
62.11 	(1) to unregistered gambling equipment being transported in interstate commerce 
62.12 	between locations outside this state, if the interstate shipment is verified by a bill of lading 
62.13 	or other valid shipping document; and
62.14 	(2) to gambling equipment registered with the Department of Revenue for 
62.15 	distribution to the tribal casinos.

62.16 	Sec. 39. Minnesota Statutes 2010, section 349.163, subdivision 1, is amended to read:
62.17 		Subdivision 1.License required. No manufacturer of gambling equipment may 
62.18 	sell any gambling equipment to any person for use or resale within the state, unless the 
62.19 	manufacturer has a current and valid license issued by the board under this section and has 
62.20 	satisfied other criteria prescribed by the board by rule. A manufacturer licensed under this 
62.21 	section may also be licensed as a linked bingo game provider under section 349.1635. 
62.22 	A manufacturer licensed under this section may not also be directly or indirectly 
62.23 	licensed as a distributor under section 349.161.

62.24 	Sec. 40. Minnesota Statutes 2010, section 349.163, subdivision 5, is amended to read:
62.25 		Subd. 5.Paper pull-tab and tipboard flares. (a) A manufacturer may not ship or 
62.26 	cause to be shipped into this state or sell for use or resale in this state any deal of paper
62.27 	pull-tabs or tipboards that does not have its own individual flare as required for that deal 
62.28 	by this subdivision and rule of the board. A person other than a manufacturer may not 
62.29 	manufacture, alter, modify, or otherwise change a flare for a deal of paper pull-tabs or 
62.30 	tipboards except as allowed by this chapter or board rules.
62.31 	(b) The flare of each paper pull-tab and tipboard game must have affixed to 
62.32 	or imprinted at the bottom a bar code that provides all information required by the 
62.33 	commissioner of revenue under section 297E.04, subdivision 2.
63.1 	The serial number included in the bar code must be the same as the serial number 
63.2 	of the tickets included in the deal. A manufacturer who manufactures a deal of paper
63.3 	pull-tabs must affix to the outside of the box containing that game the same bar code that 
63.4 	is affixed to or imprinted at the bottom of a flare for that deal.
63.5 	(c) No person may alter the bar code that appears on the outside of a box containing 
63.6 	a deal of paper pull-tabs and tipboards. Possession of a box containing a deal of paper
63.7 	pull-tabs and tipboards that has a bar code different from the bar code of the deal inside 
63.8 	the box is prima facie evidence that the possessor has altered the bar code on the box.
63.9 	(d) The flare of each deal of paper pull-tabs and tipboards sold by a manufacturer for 
63.10 	use or resale in Minnesota must have imprinted on it a symbol that is at least one inch high 
63.11 	and one inch wide consisting of an outline of the geographic boundaries of Minnesota 
63.12 	with the letters "MN" inside the outline. The flare must be placed inside the wrapping of 
63.13 	the deal which the flare describes.
63.14 	(e) Each paper pull-tab and tipboard flare must bear the following statement printed 
63.15 	in letters large enough to be clearly legible:
63.16 	"Pull-tab (or tipboard) purchasers -- This pull-tab (or tipboard) game is not legal in 
63.17 	Minnesota unless:
63.18 	-- an outline of Minnesota with letters "MN" inside it is imprinted on this sheet, and
63.19 	-- the serial number imprinted on the bar code at the bottom of this sheet is the same 
63.20 	as the serial number on the pull-tab (or tipboard) ticket you have purchased."
63.21 	(f) The flare of each paper pull-tab and tipboard game must have the serial number 
63.22 	of the game imprinted on the bar code at the bottom of the flare in numerals at least 
63.23 	one-half inch high.

63.24 	Sec. 41. Minnesota Statutes 2010, section 349.163, subdivision 6, is amended to read:
63.25 		Subd. 6.Samples of gambling equipment. (a) The board shall require each 
63.26 	licensed manufacturer to submit to the board one or more samples of each item of gambling 
63.27 	equipment the manufacturer manufactures manufactured for use or resale in this state.
63.28 	For purposes of this subdivision, a manufacturer is also required to submit the applicable 
63.29 	version of any software necessary to operate electronic devices and related systems.
63.30 	(b) The board shall inspect and test all the equipment, including software and 
63.31 	software upgrades, it deems necessary to determine the equipment's compliance with 
63.32 	law and board rules. Samples required under this subdivision must be approved by the 
63.33 	board before the equipment being sampled is shipped into or sold for use or resale in this 
63.34 	state. The board shall impose a fee of $25 for each item of gambling equipment that the 
64.1 	manufacturer submits for approval or for which the manufacturer requests approval. The 
64.2 	board shall impose a fee of $100 for each sample of gambling equipment that it tests.
64.3 	(c) The board may require samples of gambling equipment to be tested by an 
64.4 	independent testing laboratory prior to submission to the board for approval. All costs 
64.5 	of testing by an independent testing laboratory must be borne by the manufacturer. An 
64.6 	independent testing laboratory used by a manufacturer to test samples of gambling 
64.7 	equipment must be approved by the board before the equipment is submitted to the 
64.8 	laboratory for testing.
64.9 	(d) The board may request the assistance of the commissioner of public safety and 
64.10 	the director of the State Lottery in performing the tests.

64.11 	Sec. 42. Minnesota Statutes 2010, section 349.1635, subdivision 2, is amended to read:
64.12 		Subd. 2.License application. The board may issue a license to a linked bingo game 
64.13 	provider or to a manufacturer licensed under section 349.163 who meets the qualifications 
64.14 	of this chapter and the rules promulgated by the board. The application shall be on a form 
64.15 	prescribed by the board. The license is valid for two years and the fee for a linked bingo 
64.16 	game provider license is $5,000 per year.

64.17 	Sec. 43. Minnesota Statutes 2010, section 349.1635, subdivision 3, is amended to read:
64.18 		Subd. 3.Attachments to application. An applicant for a linked bingo game 
64.19 	provider license must attach to its application:
64.20 	(1) evidence of a bond in the principal amount of $100,000 payable to the state of 
64.21 	Minnesota conditioned on the payment of all linked bingo prizes and any other money due 
64.22 	and payable under this chapter;
64.23 	(2) detailed plans and specifications for the operation of the linked bingo game and 
64.24 	the linked bingo system, along with a proposed fee schedule for the cost of providing 
64.25 	services and equipment to licensed organizations which may not exceed 15 percent of 
64.26 	gross profits, unless a higher percentage, not to exceed 20 percent, is authorized by the 
64.27 	board. The fee schedule must incorporate costs paid to distributors for services provided 
64.28 	under subdivision 5; and
64.29 	(3) any other information required by the board by rule.

64.30 	Sec. 44. Minnesota Statutes 2010, section 349.1635, is amended by adding a 
64.31 	subdivision to read:
64.32 		Subd. 5.Linked bingo game services requirements. (a) A linked bingo game 
64.33 	provider must contract with licensed distributors for linked bingo game services including, 
65.1 	but not limited to, the solicitation of agreements with licensed organizations, and 
65.2 	installation, repair, or maintenance of the linked bingo game system.
65.3 	(b) A distributor may not charge a fee to licensed organizations for services 
65.4 	authorized and rendered under paragraph (a).
65.5 	(c) A linked bingo game provider may not contract with any distributor on an 
65.6 	exclusive basis.
65.7 	(d) A linked bingo game provider may refuse to contract with a licensed distributor 
65.8 	if the linked bingo game provider demonstrates that the licensed distributor is not capable 
65.9 	of performing the services under the contract.

65.10 	Sec. 45. Minnesota Statutes 2010, section 349.165, subdivision 2, is amended to read:
65.11 		Subd. 2.Contents of application. An application for a premises permit must 
65.12 	contain:
65.13 	(1) the name and address of the applying organization;
65.14 	(2) a description of the site for which the permit is sought, including its address and, 
65.15 	where applicable, its placement within another premises or establishment;
65.16 	(3) if the site is leased, the name and address of the lessor and information about the 
65.17 	lease the board requires, including all rents and other charges for the use of the site. The 
65.18 	lease term is concurrent with the term of the premises permit. The lease must contain a 
65.19 	30-day termination clause. No lease is required for the conduct of a raffle; and
65.20 	(4) other information the board deems necessary to carry out its purposes.
65.21 	An organization holding a premises permit must notify the board in writing within 
65.22 	ten days whenever any material change is made in the above information.

65.23 	Sec. 46. Minnesota Statutes 2010, section 349.17, subdivision 6, is amended to read:
65.24 		Subd. 6.Conduct of bingo. The price of a face played on an electronic bingo 
65.25 	device may not be less than the price of a face on a bingo paper sheet sold for the same 
65.26 	game at the same occasion. A game of bingo begins with the first letter and number called
65.27 	or displayed. Each player must cover, mark, or activate the numbers when bingo numbers 
65.28 	are randomly selected, and announced, and or displayed to the players, either manually 
65.29 	or with a flashboard and monitor. The game is won when a player, using bingo paper, 
65.30 	bingo hard card, or a facsimile of a bingo paper sheet, has completed, as described in the 
65.31 	bingo program, a previously designated pattern or previously determined requirements 
65.32 	of the game and declared bingo. The game is completed when a winning card, sheet, or 
65.33 	facsimile is verified and a prize awarded pursuant to subdivision 3.

66.1 	Sec. 47. Minnesota Statutes 2010, section 349.17, subdivision 7, is amended to read:
66.2 		Subd. 7.Bar bingo. An organization may conduct bar bingo subject to the 
66.3 	following restrictions:
66.4 	(1) the bingo is conducted at a site the organization owns or leases and which has a 
66.5 	license for the sale of intoxicating beverages on the premises under chapter 340A; and
66.6 	(2) the bingo is conducted using only bingo paper sheets or facsimiles of bingo paper 
66.7 	sheets purchased from a licensed distributor or licensed linked bingo game provider; and
66.8 	(3) no rent may be paid for a bar bingo occasion.

66.9 	Sec. 48. Minnesota Statutes 2010, section 349.17, subdivision 8, is amended to read:
66.10 		Subd. 8.Linked bingo games. (a) A licensed organization may conduct or 
66.11 	participate in not more than two linked bingo games per occasion, one of which may be, 
66.12 	includinga progressive gamesgame in which a portion of the prize is carried over from 
66.13 	one occasion game to another until won by a player achieving a valid bingo within a 
66.14 	predeterminedamount of bingo numbers calledbased upon a predetermined and posted 
66.15 	win determination.
66.16 	(b) Each participating licensed organization shall contribute to each prize awarded in 
66.17 	a linked bingo game in an amount not to exceed $300. Linked bingo games may only be 
66.18 	conducted by licensed organizations who have a valid agreement with the linked bingo 
66.19 	game provider.
66.20 	(c) An electronic bingo device as defined in section 349.12, subdivision 12a, may 
66.21 	be used for a linked bingo game.
66.22 	(d) The board may adopt rules to:
66.23 	(1) specify the manner in which a linked bingo game must be played and how the 
66.24 	linked bingo prizes must be awarded;
66.25 	(2) specify the records to be maintained by a linked bingo game provider;
66.26 	(3) require the submission of periodic reports by the linked bingo game provider and 
66.27 	specify the content of the reports;
66.28 	(4) establish the qualifications required to be licensed as a linked bingo game 
66.29 	provider; and
66.30 	(5) any other matter involving the operation of a linked bingo game.

66.31 	Sec. 49. Minnesota Statutes 2010, section 349.17, is amended by adding a subdivision 
66.32 	to read:
67.1 		Subd. 9.Linked bingo games played exclusively on electronic bingo devices. In 
67.2 	addition to the requirements of subdivision 8, the following requirements and restrictions 
67.3 	apply when linked bingo games are played exclusively on electronic bingo devices.
67.4 	(a) The permitted premises must be:
67.5 	(1) a premises licensed for the on-sale or off-sale of intoxicating liquor or 3.2 percent 
67.6 	malt beverages, except for a general food store or drug store permitted to sell alcoholic 
67.7 	beverages under section 340A.405, subdivision 1; or
67.8 	(2) a premises where bingo is conducted as the primary business and has a seating 
67.9 	capacity of at least 100.
67.10 	(b) The number of electronic bingo devices is limited to:
67.11 	(1) no more than six devices in play for permitted premises with 200 seats or less;
67.12 	(2) no more than 12 devices in play for permitted premises with 201 seats or more; 
67.13 	and
67.14 	(3) no more than 50 devices in play for permitted premises where bingo is the 
67.15 	primary business.
67.16 	Seating capacity is determined as specified under the local fire code.
67.17 	(c) Prior to a bingo occasion, the linked bingo game provider, on behalf of the 
67.18 	participating organizations, must provide to the board a bingo program in a format 
67.19 	prescribed by the board.
67.20 	(d) Before participating in the play of a linked bingo game, a player must present 
67.21 	and register a valid picture identification card that includes the player's address and 
67.22 	date of birth.
67.23 	(e) An organization may remove from play a device that a player has not maintained 
67.24 	in an activated mode for a specified period of time determined by the organization. The 
67.25 	organization must provide the notice in its house rules.

67.26 	Sec. 50. Minnesota Statutes 2010, section 349.1721, is amended to read:
67.27 	349.1721 CONDUCT OF PULL-TABS.
67.28 		Subdivision 1.Cumulative or carryover games. The board shall by rule permit 
67.29 	pull-tab games with multiple seals. The board shall also adopt rules for pull-tab games with 
67.30 	cumulative or carryover prizes. The rules shall also apply to electronic pull-tab games.
67.31 		Subd. 2.Event games. The board shall by rule permit pull-tab games in which 
67.32 	certain winners are determined by the random selection of one or more bingo numbers 
67.33 	or by another method approved by the board. The rules shall also apply to electronic 
67.34 	pull-tab games. 
68.1 		Subd. 3.Pull-tab dispensing device location restrictions and requirements.
 68.2 	The following pertain to pull-tab dispensing devices as defined under section 349.12, 
68.3 	subdivision 32a.
68.4 	(a) The use of any pull-tab dispensing device must be at a permitted premises 
68.5 	which is:
68.6 	(1) a licensed premises for on-sale of intoxicating liquor or 3.2 percent malt 
68.7 	beverages;
68.8 	(2) a premises where bingo is conducted as the primary business; or
68.9 	(3) an establishment licensed for the off-sale of intoxicating liquor, other than drug 
68.10 	stores and general food stores licensed under section 340A.405, subdivision 1.
68.11 	(b) The number of pull-tab dispensing devices located at any permitted premises 
68.12 	is limited to three.
68.13 		Subd. 4.Electronic pull-tab device requirements and restrictions. The following 
68.14 	pertain to the use of electronic pull-tab devices as defined under section 349.12, 
68.15 	subdivision 12b.
68.16 	(a) The use of any electronic pull-tab device may only be at a permitted premises 
68.17 	that is:
68.18 	(1) a premises licensed for the on-sale or off-sale of intoxicating liquor or 3.2 percent 
68.19 	malt beverages, except for a general food store or drug store permitted to sell alcoholic 
68.20 	beverages under section 340A.405, subdivision 1; or
68.21 	(2) a premises where bingo is conducted as the primary business and has a seating 
68.22 	capacity of at least 100; and
68.23 	(3) where the licensed organization sells paper pull-tabs. 
68.24 	(b) Until July 1, 2013, the number of electronic pull-tab devices is limited to:
68.25 	(1) no more than six devices in play at any permitted premises with 200 seats or less;
68.26 	(2) no more than 12 devices in play at any permitted premises with 201 seats 
68.27 	or more; and
68.28 	(3) no more than 50 devices in play at any permitted premises where the primary 
68.29 	business is bingo.
68.30 	Seating capacity is determined as specified under the local fire code.
68.31 	(c) After July 1, 2013, the Gambling Control Board may increase the limits on 
68.32 	the number of electronic pull-tab devices.
68.33 	(d) The hours of operation for the devices are limited to 8:00 a.m. to 2:00 a.m.
68.34 	(e) All electronic pull-tab games must be sold and played on the permitted premises 
68.35 	and may not be linked to other permitted premises.
69.1 	(f) Electronic pull-tab games may not be transferred electronically or otherwise to 
69.2 	any other location by the licensed organization.
69.3 	(g) Electronic pull-tab games may be commingled if the games are from the same 
69.4 	family of games and manufacturer and contain the same game name, form number, type 
69.5 	of game, ticket count, prize amounts, and prize denominations. Each commingled game 
69.6 	must have a unique serial number.
69.7 	(h) An organization may remove from play a device that a player has not maintained 
69.8 	in an activated mode for a specified period of time determined by the organization. The 
69.9 	organization must provide the notice in its house rules. 
69.10 	(i) Before participating in the play of an electronic pull-tab game, a player must 
69.11 	present and register a valid picture identification card that includes the player's address 
69.12 	and date of birth.
69.13 	(j) Each player is limited to the use of one device at a time.
69.14 		Subd. 5.Multiple chance games. The board may permit pull-tab games in which 
69.15 	the holders of certain predesignated winning tickets, with a prize value not to exceed $75 
69.16 	each, have the option of turning in the winning tickets for the chance to win a prize of 
69.17 	greater value.

69.18 	Sec. 51. Minnesota Statutes 2010, section 349.18, subdivision 1, is amended to read:
69.19 		Subdivision 1.Lease or ownership required; rent limitations. (a) An organization 
69.20 	may conduct lawful gambling only on premises it owns or leases. Leases must be on a 
69.21 	form prescribed by the board. The term of the lease is concurrent with the premises permit. 
69.22 	Leases approved by the board must specify that the board may authorize an organization 
69.23 	to withhold rent from a lessor for a period of up to 90 days if the board determines that 
69.24 	illegal gambling occurred on the premises or that the lessor or its employees participated 
69.25 	in the illegal gambling or knew of the gambling and did not take prompt action to stop the 
69.26 	gambling. The lease must authorize the continued tenancy of the organization without 
69.27 	the payment of rent during the time period determined by the board under this paragraph. 
69.28 	Copies of all leases must be made available to employees of the board and the Division of 
69.29 	Alcohol and Gambling Enforcement on request.
69.30 	(b) Rent paid by an organization for leased premises for the conduct of pull-tabs, 
69.31 	tipboards, and paddle wheels lawful gambling is subject to the following limits and 
69.32 	restrictions:
69.33 	(1) For booth operations, including booth operations where a pull-tab dispensing 
69.34 	device is located, booth operations where a bar operation is also conducted, and booth 
69.35 	operations where both a pull-tab dispensing device is located and a bar operation is also 
70.1 	conducted, the maximum rent is: monthly rent may not exceed ten percent of gross profits 
70.2 	for that month. Total rent paid to a lessor from all organizations from leases governed by 
70.3 	this clause may not exceed $1,750 per month.
70.4 	(i) in any month where the organization's gross profit at those premises does not 
70.5 	exceed $4,000, up to $400; and
70.6 	(ii) in any month where the organization's gross profit at those premises exceeds 
70.7 	$4,000, up to $400 plus not more than ten percent of the gross profit for that month in 
70.8 	excess of $4,000;
70.9 	(2) For bar operations, including bar operations where a pull-tab dispensing device 
70.10 	is located but not including bar operations subject to clause (1), and for locations where 
70.11 	only a pull-tab dispensing device is located: monthly rent may not exceed 15 percent of 
70.12 	the gross profits for that month from electronic pull-tab games and electronic linked 
70.13 	bingo games and not more than 20 percent of gross profits for that month from all other 
70.14 	forms of lawful gambling.
70.15 	(i) in any month where the organization's gross profit at those premises does not 
70.16 	exceed $1,000, up to $200; and
70.17 	(ii) in any month where the organization's gross profit at those premises exceeds 
70.18 	$1,000, up to $200 plus not more than 20 percent of the gross profit for that month 
70.19 	in excess of $1,000;
70.20 	(3) a lease not governed by clauses (1) and (2) must be approved by the board before 
70.21 	becoming effective; For electronic linked bingo games and electronic pull-tab games that 
70.22 	are operated for separate time periods within a business day by an organization and the 
70.23 	lessor, monthly rent may not be more than:
70.24 	(i) 15 percent of the gross profits for that month for the time periods operated by 
70.25 	the lessor. The lessor is responsible for cash shortages that occur during the time periods 
70.26 	the games are operated by the lessor; and
70.27 	(ii) ten percent of the gross profits for that month for the time periods operated by 
70.28 	the organization. The organization is responsible for cash shortages that occur during the 
70.29 	time periods the games are operated by the organization.
70.30 	(4) total rent paid to a lessor from all organizations from leases governed by clause 
70.31 	(1) may not exceed $1,750 per month.
70.32 	(c) Rent paid by an organization for leased premises for the conduct of bingo is 
70.33 	subject to either of the following limits at the option of the parties to the lease:
70.34 	(1) (4) For bingo conducted at a leased premises where the primary business is 
70.35 	bingo, rent is limited to either not more than ten percent of the monthly gross profit from 
70.36 	all lawful gambling activities held during bingo occasions, excluding bar bingo or at a 
71.1 	rate based on a cost per square foot not to exceed 110 percent of a comparable cost per 
71.2 	square foot for leased space as approved by the director; and.
71.3 	(2) (5) No rent may be paid for bar bingo as defined in section 349.12, subdivision 3c.
71.4 	(6) A lease not governed by clauses (1) to (5) must be approved by the director 
71.5 	before becoming effective.
71.6 	(d) (c) Amounts paid as rent under leases are all-inclusive. No other services or 
71.7 	expenses provided or contracted by the lessor may be paid by the organization, including, 
71.8 	but not limited to, trash removal, janitorial and cleaning services, snow removal, lawn 
71.9 	services, electricity, heat, security, security monitoring, storage, and other utilities or 
71.10 	services, and, in the case of bar operations, cash shortages, unless approved by the 
71.11 	director. The lessor shall be responsible for the cost of any communications network or 
71.12 	service required to conduct electronic pull-tab games or electronic bingo games. Any 
71.13 	other expenditure made by an organization that is related to a leased premises must be 
71.14 	approved by the director. For bar operations, the lessor is responsible for cash shortages.
71.15 	An organization may not provide any compensation or thing of value to a lessor or the 
71.16 	lessor's employees from any fund source other than its gambling account. Rent payments 
71.17 	may not be made to an individual.
71.18 	(e) (d) Notwithstanding paragraph (b), an organization may pay a lessor for food 
71.19 	or beverages or meeting room rental if the charge made is comparable to similar charges 
71.20 	made to other individuals or groups.
71.21 	(f) No entity other than the (e) A licensed organization may not conduct any activity 
71.22 	within a booth operation on behalf of the lessor on a leased premises.

71.23 	Sec. 52. Minnesota Statutes 2010, section 349.19, subdivision 2, is amended to read:
71.24 		Subd. 2.Accounts. (a) Gross receipts from lawful gambling by each organization 
71.25 	must be segregated from all other revenues of the conducting organization and placed in a 
71.26 	separate gambling bank account.
71.27 	(b) All expenditures for allowable expenses, taxes, and lawful purposes must be 
71.28 	made from the separate account except (1) in the case of expenditures previously approved 
71.29 	by the organization's membership for emergencies as defined by board rule, (2) as provided 
71.30 	in subdivision 2a, or (3) when restricted to one electronic fund transaction for the payment 
71.31 	of taxes for the organization as a whole, the organization may transfer the amount of taxes 
71.32 	related to the conduct of gambling to the general account at the time when due and payable.
71.33 	(c) The name and address of the bank, the account number for the separate account, 
71.34 	and the names of organization members authorized as signatories on the separate account 
72.1 	must be provided to the board when the application is submitted. Changes in the 
72.2 	information must be submitted to the board at least ten days before the change is made.
72.3 	(d) Except for gambling receipts from electronic pull-tab games and linked 
72.4 	electronic bingo games, gambling receipts must be deposited into the gambling bank 
72.5 	account within four business days of completion of the bingo occasion, deal, or game from 
72.6 	which they are received.
72.7 	(1) A deal of paper pull-tabs is considered complete when either the last pull-tab of 
72.8 	the deal is sold or the organization does not continue the play of the deal during the next 
72.9 	scheduled period of time in which the organization will conduct pull-tabs.
72.10 	(2) A tipboard game is considered complete when the seal on the game flare is 
72.11 	uncovered or the organization does not continue the play of the deal during the next 
72.12 	scheduled period of time in which the organization will conduct tipboards.
72.13 	(e) Gambling receipts from all electronic pull-tab games and all linked electronic 
72.14 	bingo games must be recorded on a daily basis and deposited into the gambling bank 
72.15 	account within two business days.
72.16 	(e) (f) Deposit records must be sufficient to allow determination of deposits made 
72.17 	from each bingo occasion, deal, or game at each permitted premises.
72.18 	(f) (g) The person who accounts for gambling gross receipts and profits may not be 
72.19 	the same person who accounts for other revenues of the organization.

72.20 	Sec. 53. Minnesota Statutes 2010, section 349.19, subdivision 3, is amended to read:
72.21 		Subd. 3.Expenditures. (a) All expenditures of gross profits from lawful gambling 
72.22 	must be itemized as to payee, purpose, amount, and date of payment.
72.23 	(b) Each licensed organization must report monthly to the board on a form in an 
72.24 	electronic format prescribed by the board each expenditure or contribution of net profits 
72.25 	from lawful gambling. The reports must provide for each expenditure or contribution:
72.26 	(1) the name of the recipient of the expenditure or contribution;
72.27 	(2) the date the expenditure or contribution was approved by the organization;
72.28 	(3) the date, amount, and check number or electronic transfer confirmation number 
72.29 	of the expenditure or contribution;
72.30 	(4) a brief description of how the expenditure or contribution meets one or more of 
72.31 	the purposes in section 349.12, subdivision 25; and
72.32 	(5) in the case of expenditures authorized under section 349.12, subdivision 25, 
72.33 	paragraph (a), clause (7), whether the expenditure is for a facility or activity that primarily 
72.34 	benefits male or female participants.
73.1 	(c) Authorization of the expenditures must be recorded in the monthly meeting 
73.2 	minutes of the licensed organization.
73.3 	(d) Checks or authorizations for electronic fund transfers for expenditures of gross 
73.4 	profits must be signed by at least two persons authorized by board rules to sign the 
73.5 	checks or authorizations.
73.6 	(e) Expenditures of gross profits from lawful gambling for local, state, and federal 
73.7 	taxes as identified in section 349.12, subdivision 25, paragraph (a), clause (8), may be 
73.8 	transferred electronically from the organization's gambling account directly to bank 
73.9 	accounts identified by local, state, or federal agencies if the organization's gambling 
73.10 	account monthly bank statement specifically identifies the payee by name, the amount 
73.11 	transferred, and the date of the transaction.
73.12 	(f) Expenditures of gross profits from lawful gambling for payments for lawful 
73.13 	purpose expenditures and allowable expenses may be transferred electronically from the 
73.14 	organization's gambling account directly to bank accounts identified by the vendor if the 
73.15 	organization's gambling account monthly bank statement specifically identifies the payee 
73.16 	by name, the amount transferred, the account number of the account into which the funds 
73.17 	were transferred, and the date of the transaction.
73.18 	(g) Expenditures of gross profits from lawful gambling for payroll compensation 
73.19 	to an employee's account and for the payment of local, state, and federal withholding 
73.20 	taxes may be transferred electronically to and from the account of a payroll processing 
73.21 	firm provided that the firm:
73.22 	(1) is currently registered with and meets the criteria of the Department of Revenue 
73.23 	as a third-party bulk filer under section 290.92, subdivision 30;
73.24 	(2) is able to provide proof of a third-party audit and an annual report and statement 
73.25 	of financial condition;
73.26 	(3) is able to provide evidence of a fidelity bond; and
73.27 	(4) can provide proof of having been in business as a third-party bulk filer for the 
73.28 	most recent three years.
73.29 	(h) Electronic payments of taxes, lawful purpose expenditures, and allowable 
73.30 	expenses are permitted only if they have been authorized by the membership, the 
73.31 	organization maintains supporting documentation, and the expenditures can be verified.

73.32 	EFFECTIVE DATE. This section is effective July 1, 2012.

73.33 	Sec. 54. Minnesota Statutes 2010, section 349.19, subdivision 5, is amended to read:
73.34 		Subd. 5.Reports. (a) A licensed organization must report monthly to the 
73.35 	Department of Revenue board in an electronic format prescribed by the board and to its 
74.1 	membership monthly, or quarterly in the case of a licensed organization which does not 
74.2 	report more than $1,000 in gross receipts from lawful gambling in any calendar quarter,
74.3 	on its gross receipts, expenses, profits, and expenditure of profits from lawful gambling
74.4 	for each permitted premises. The organization must account for and report on each form 
74.5 	of lawful gambling conducted. The report organization must include a reconciliation of 
74.6 	the organization's profit carryover with its cash balance on hand. If the organization 
74.7 	conducts both bingo and other forms of lawful gambling, the figures for both must be 
74.8 	reported separately.
74.9 	(b) The organization must report annually to its membership and annually file with 
74.10 	the board a financial summary report in a format prescribed by the board that identifies the 
74.11 	organization's receipts and use of lawful gambling proceeds, including: monthly to the 
74.12 	commissioner of revenue as required under section 297E.06.
74.13 	(1) gross receipts;
74.14 	(2) prizes paid;
74.15 	(3) allowable expenses;
74.16 	(4) lawful purpose expenditures, including annual totals for types of charitable 
74.17 	contributions and all taxes and fees as per section 349.12, subdivision 25, paragraph 
74.18 	(a), clauses (8) and (18);
74.19 	(5) the percentage of annual gross profits used for charitable contributions; and
74.20 	(6) the percentage of annual gross profits used for all taxes and fees as per section 
74.21 	349.12, subdivision 25, paragraph (a), clauses (8) and (18).

74.22 	EFFECTIVE DATE. This section is effective July 1, 2012.

74.23 	Sec. 55. Minnesota Statutes 2010, section 349.19, subdivision 10, is amended to read:
74.24 		Subd. 10.Pull-tab records. (a) The board shall by rule require a licensed 
74.25 	organization to require each winner of a paper pull-tab prize of $50 or more to present 
74.26 	identification in the form of a driver's license, Minnesota identification card, or other 
74.27 	identification the board deems sufficient to allow the identification and tracking of the 
74.28 	winner. The rule must require the organization to retain winning paper pull-tabs of $50 or 
74.29 	more, and the identification of the winner of the pull-tab, for 3-1/2 years.
74.30 	(b) An organization must maintain separate cash banks for each deal of paper
74.31 	pull-tabs unless (1) the licensed organization uses a pull-tab dispensing device, or (2) the 
74.32 	organization uses a cash register, of a type approved by the board, which records all 
74.33 	sales of paper pull-tabs by separate deals.
74.34 	(c) The board shall:
75.1 	(1) by rule adopt minimum technical standards for cash registers that may be used 
75.2 	by organizations, and shall approve for use by organizations any cash register that meets 
75.3 	the standards; and
75.4 	(2) before allowing an organization to use a cash register that commingles receipts 
75.5 	from several different paper pull-tab games in play, adopt rules that define how cash 
75.6 	registers may be used and that establish a procedure for organizations to reconcile all 
75.7 	pull-tab games in play at the end of each month.

75.8 	Sec. 56. Minnesota Statutes 2010, section 349.211, subdivision 1a, is amended to read:
75.9 		Subd. 1a.Linked bingo prizes. Prizes for a linked bingo game shall be limited 
75.10 	as follows:
75.11 	(1) no organization may contribute more than $300 per linked bingo game to a 
75.12 	linked bingo prize pool for linked bingo games played without electronic bingo devices, 
75.13 	an organization may not contribute to a linked bingo game prize pool more than $300 
75.14 	per linked bingo game per site;
75.15 	(2) for linked bingo games played exclusively with electronic bingo devices, an 
75.16 	organization may not contribute more than 85 percent of the gross receipts per permitted 
75.17 	premises to a linked bingo game prize pool;
75.18 	(2) (3) no organization may award more than $200 for a linked bingo game 
75.19 	consolation prize. For purposes of this subdivision, a linked bingo game consolation 
75.20 	prize is a prize awarded by an organization after a prize from the linked bingo prize pool 
75.21 	has been won; and
75.22 	(3) (4) for a progressive linked bingo game, if no player declares a valid bingo 
75.23 	within the for a progressive prize or prizes based on a predetermined amount of bingo 
75.24 	numbers called and posted win determination, a portion of the prize is gross receipts 
75.25 	may be carried over to another occasion game until the accumulated progressive prize 
75.26 	is won. The portion of the prize that is not carried over must be awarded to the first 
75.27 	player or players who declares a valid bingo as additional numbers are called. If a valid 
75.28 	bingo is declared within the predetermined amount of bingo numbers called, the entire 
75.29 	prize pool for that game is awarded to the winner. The annual limit for progressive bingo 
75.30 	game prizes contained in subdivision 2 must be reduced by the amount an organization 
75.31 	contributes to progressive linked bingo games during the same calendar year.; and
75.32 	(5) for linked bingo games played exclusively with electronic bingo devices, linked 
75.33 	bingo prizes in excess of $599 shall be paid by the linked bingo game provider to the 
75.34 	player within three business days. Winners of linked bingo prizes in excess of $599 will 
75.35 	be given a receipt or claim voucher as proof of a win.

76.1 	Sec. 57. [349A.20] STADIUM, SPORTS-THEMED GAME.
76.2 	The State Lottery shall conduct a game based on stadium or professional sports 
76.3 	themes to generate a minimum of $2,100,000 in additional revenue for the fiscal year 
76.4 	for the general fund. 

76.5 	EFFECTIVE DATE. This section is effective the day following final enactment.

76.6 	Sec. 58. APPROPRIATION.
 76.7 	$779,000 in fiscal year 2013 and $779,000 in fiscal year 2014 and $779,000 in fiscal 
76.8 	year 2015 are appropriated from the lawful gambling regulation account in the special 
76.9 	revenue fund to the commissioner of human services for operating expenses related to 
76.10 	the regulatory oversight of lawful gambling for electronic pull-tabs and electronic linked 
76.11 	bingo.

76.12 	Sec. 59.  REPEALER.
 76.13 	Minnesota Statutes 2010, sections 297E.02, subdivision 4; 349.15, subdivision 3; 
76.14 	and 349.19, subdivision 2a, are repealed.

76.15 	EFFECTIVE DATE. This section is effective for games sold by a licensed 
76.16 	distributor after June 30, 2012, and the commissioner of revenue retains authority to 
76.17 	issue refunds under Minnesota Statutes 2010, section 297E.02, subdivision 4, paragraph 
76.18 	(d), for games sold before July 1, 2012.

76.19 	Sec. 60. EFFECTIVE DATE.
 76.20 	Except as otherwise explicitly provided, this article is effective the day following 
76.21 	final enactment.

76.22 	ARTICLE 5
76.23 	MISCELLANEOUS

76.24 	Section 1. Minnesota Statutes 2010, section 240A.12, subdivision 1, is amended to 
76.25 	read:
76.26 		Subdivision 1.Grants. The commission may make matching grants to cities, 
76.27 	counties, school districts, and other political subdivisions of the state:
76.28 	(1) to acquire and better public land and buildings and other public improvements of 
76.29 	a capital nature to be used for community facilities and related infrastructure primarily for 
76.30 	amateur athletics;
76.31 	(2) to renovate existing facilities used primarily for amateur athletics;
77.1 	(3) to support recreational programs for children and adolescents; and
77.2 	(4) to support special eventseducation and cultural programs involving amateur 
77.3 	athletics.

77.4 	Sec. 2. Minnesota Statutes 2010, section 240A.12, subdivision 3, is amended to read:
77.5 		Subd. 3.Maximum grants and matching contributions. Each grant under this 
77.6 	section must be matched by recipient communities or institutions in accordance with this 
77.7 	subdivision. A matching contribution may include an in-kind contribution of land, access 
77.8 	roadways and access roadway improvements, and necessary utility services, landscaping, 
77.9 	and parking. A grant for new facilities may not exceed $100,000 and must be matched 
77.10 	by the recipient at a rate of four times the amount of the grant. A grant for renovation of 
77.11 	existing facilities may not exceed $50,000 and must be matched equally by the recipient. 
77.12 	A grant for recreational programs may not exceed $20,000 and must be matched equally 
77.13 	by the recipient. A grant for a special event or program may not exceed $100,000 and 
77.14 	must be matched equally by the recipient. Maximum grants and other grant criteria shall 
77.15 	be established by the commission.

77.16 	Sec. 3. [245.981] COMPULSIVE GAMBLING ANNUAL REPORT.
77.17 	(a) Each year by February 15, 2014, and thereafter, the commissioner of human 
77.18 	services shall report to the chairs and ranking minority members of the legislative 
77.19 	committees having jurisdiction over compulsive gambling on the percentage of gambling 
77.20 	revenues that come from gamblers identified as problem gamblers, or a similarly defined 
77.21 	term, as defined by the National Council on Problem Gambling. The report must 
77.22 	disaggregate the revenue by the various types of gambling, including, but not limited to: 
77.23 	lottery; electronic and paper pull-tabs; bingo; linked bingo; and pari-mutuel betting.
77.24 	(b) By February 15, 2013, the commissioner shall provide a preliminary update for 
77.25 	the report required under paragraph (a) to the chairs and ranking minority members of the 
77.26 	legislative committees having jurisdiction over compulsive gambling and the estimated 
77.27 	cost of the full report.

77.28 	Sec. 4. Minnesota Statutes 2010, section 297A.71, is amended by adding a subdivision 
77.29 	to read:
77.30 		Subd. 44.Building materials, capital projects. Materials and supplies used or 
77.31 	consumed in and equipment incorporated into the construction or improvement of a 
77.32 	capital project funded partially or wholly under section 297A.9905 are exempt, provided 
77.33 	that the project has a total construction cost of at least $40,000,000 within a 24-month 
78.1 	period. The tax on purchases exempt under this provision must be imposed and collected 
78.2 	as if the rate under section 297A.62, subdivision 1, applied and then refunded in the 
78.3 	manner provided in section 297A.75.

78.4 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
78.5 	June 30, 2013.

78.6 	Sec. 5. [297A.9905] USE OF LOCAL TAX REVENUES BY CITIES OF THE 
78.7 	FIRST CLASS.
78.8 	(a) Notwithstanding section 297A.99, or other general or special law or charter 
78.9 	provision, if the revenues from any local tax imposed on retail sales under special law 
78.10 	by a city of the first class exceeds the amount needed to fund the uses authorized in the 
78.11 	special law, the city may expend the excess revenue from the tax to fund other capital 
78.12 	projects of regional significance.
78.13 	(b) For purposes of this section:
78.14 	(1) "city of the first class" has the meaning given in section 410.01; and
78.15 	(2) "capital project of regional significance" means construction, expansion, or 
78.16 	renovation of a sports facility or convention or civic center, that has a construction cost 
78.17 	of at least $40,000,000.

78.18 	EFFECTIVE DATE. This section is effective the day following final enactment.

78.19 	Sec. 6. Minnesota Statutes 2010, section 297A.75, subdivision 1, as amended by Laws 
78.20 	2011, First Special Session chapter 7, article 3, section 13, is amended to read:
78.21 		Subdivision 1.Tax collected. The tax on the gross receipts from the sale of the 
78.22 	following exempt items must be imposed and collected as if the sale were taxable and the 
78.23 	rate under section 297A.62, subdivision 1, applied. The exempt items include:
78.24 	(1) capital equipment exempt under section 297A.68, subdivision 5;
78.25 	(2) building materials for an agricultural processing facility exempt under section 
78.26 	297A.71, subdivision 13;
78.27 	(3) building materials for mineral production facilities exempt under section 
78.28 	297A.71, subdivision 14;
78.29 	(4) building materials for correctional facilities under section 297A.71, subdivision 
78.30 	3;
78.31 	(5) building materials used in a residence for disabled veterans exempt under section 
78.32 	297A.71, subdivision 11;
78.33 	(6) elevators and building materials exempt under section 297A.71, subdivision 12;
79.1 	(7) building materials for the Long Lake Conservation Center exempt under section 
79.2 	297A.71, subdivision 17;
79.3 	(8) materials and supplies for qualified low-income housing under section 297A.71, 
79.4 	subdivision 23;
79.5 	(9) materials, supplies, and equipment for municipal electric utility facilities under 
79.6 	section 297A.71, subdivision 35;
79.7 	(10) equipment and materials used for the generation, transmission, and distribution 
79.8 	of electrical energy and an aerial camera package exempt under section 297A.68, 
79.9 	subdivision 37;
79.10 	(11) tangible personal property and taxable services and construction materials, 
79.11 	supplies, and equipment exempt under section 297A.68, subdivision 41;
79.12 	(12) commuter rail vehicle and repair parts under section 297A.70, subdivision 
79.13 	3, clause (11);
79.14 	(13) materials, supplies, and equipment for construction or improvement of projects 
79.15 	and facilities under section 297A.71, subdivision 40;
79.16 	(14) materials, supplies, and equipment for construction or improvement of a meat 
79.17 	processing facility exempt under section 297A.71, subdivision 41; 
79.18 	(15) materials, supplies, and equipment for construction, improvement, or expansion 
79.19 	of an aerospace defense manufacturing facility exempt under section 297A.71, subdivision 
79.20 	42; and
79.21 	(16) enterprise information technology equipment and computer software for use in 
79.22 	a qualified data center exempt under section 297A.68, subdivision 42; and
79.23 	(17) materials, supplies, and equipment for qualifying capital projects under section 
79.24 	297A.71, subdivision 34.

79.25 	Sec. 7. Minnesota Statutes 2010, section 297A.75, subdivision 2, as amended by Laws 
79.26 	2011, First Special Session chapter 7, article 3, section 14, is amended to read:
79.27 		Subd. 2.Refund; eligible persons. Upon application on forms prescribed by the 
79.28 	commissioner, a refund equal to the tax paid on the gross receipts of the exempt items 
79.29 	must be paid to the applicant. Only the following persons may apply for the refund:
79.30 	(1) for subdivision 1, clauses (1) to (3), the applicant must be the purchaser;
79.31 	(2) for subdivision 1, clauses (4) and (7), the applicant must be the governmental 
79.32 	subdivision;
79.33 	(3) for subdivision 1, clause (5), the applicant must be the recipient of the benefits 
79.34 	provided in United States Code, title 38, chapter 21;
80.1 	(4) for subdivision 1, clause (6), the applicant must be the owner of the homestead 
80.2 	property;
80.3 	(5) for subdivision 1, clause (8), the owner of the qualified low-income housing 
80.4 	project;
80.5 	(6) for subdivision 1, clause (9), the applicant must be a municipal electric utility or 
80.6 	a joint venture of municipal electric utilities;
80.7 	(7) for subdivision 1, clauses (10), (11), (14), (15), and (16), the owner of the 
80.8 	qualifying business; and
80.9 	(8) for subdivision 1, clauses (12) and, (13), and (17), the applicant must be the 
80.10 	governmental entity that owns or contracts for the project or facility.

80.11 	Sec. 8. Minnesota Statutes 2010, section 297A.75, subdivision 3, as amended by Laws 
80.12 	2011, First Special Session chapter 7, article 3, section 15, is amended to read:
80.13 		Subd. 3.Application. (a) The application must include sufficient information 
80.14 	to permit the commissioner to verify the tax paid. If the tax was paid by a contractor, 
80.15 	subcontractor, or builder, under subdivision 1, clause (4), (5), (6), (7), (8), (9), (10), (11), 
80.16 	(12), (13), (14), (15), or (16), or (17), the contractor, subcontractor, or builder must 
80.17 	furnish to the refund applicant a statement including the cost of the exempt items and the 
80.18 	taxes paid on the items unless otherwise specifically provided by this subdivision. The 
80.19 	provisions of sections 289A.40 and 289A.50 apply to refunds under this section.
80.20 	(b) An applicant may not file more than two applications per calendar year for 
80.21 	refunds for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.
80.22 	(c) Total refunds for purchases of items in section 297A.71, subdivision 40, must not 
80.23 	exceed $5,000,000 in fiscal years 2010 and 2011. Applications for refunds for purchases 
80.24 	of items in sections 297A.70, subdivision 3, paragraph (a), clause (11), and 297A.71, 
80.25 	subdivision 40, must not be filed until after June 30, 2009.

80.26 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
80.27 	June 30, 2013.

80.28 	Sec. 9. USE OF THE STADIUM.
 80.29 		Subdivision 1.Amateur sports use. The lessee of the stadium must make the 
80.30 	facilities of the stadium available to the Minnesota Amateur Sports Commission up to 
80.31 	ten days each year on terms satisfactory to the commission for amateur sports activities 
80.32 	consistent with Minnesota Statutes, chapter 240A, each year during the time the bonds 
80.33 	issued pursuant to this act are outstanding. The commission must negotiate in good faith 
81.1 	for the time it uses the stadium, but the commission shall not be required to pay more than 
81.2 	actual out-of-pocket expenses for the time it uses the arena.
81.3 		Subd. 2.High school league. The lessee of the stadium must make the facilities 
81.4 	of the stadium available for use by the Minnesota State High School League for at least 
81.5 	seven days each year for high school soccer and football tournaments. The league must 
81.6 	negotiate in good faith for the time it uses the stadium.

81.7 	Sec. 10. CITY OF BLOOMINGTON; TAX INCREMENT FINANCING.
 81.8 	Notwithstanding Minnesota Statutes, section 469.176, or Laws 1996, chapter 464, 
81.9 	article 1, section 8, or any other law to the contrary, the city of Bloomington and its port 
81.10 	authority may extend the duration limits of tax increment financing district No. 1-G, 
81.11 	containing the former Met Center property, including Lindau Lane and that portion of tax 
81.12 	increment financing district No. 1-C north of the existing building line on Lot 1, Block 1, 
81.13 	Mall of America 7th Addition, exclusive of Lots 2 and 3, through December 31, 2038.

81.14 	EFFECTIVE DATE. This section is effective upon compliance of the governing 
81.15 	body of the city of Bloomington with the requirements of Minnesota Statutes, sections 
81.16 	469.1782, subdivision 2, and 645.021, subdivision 3.

81.17 	Sec. 11. CITY OF BLOOMINGTON; TAX INCREMENT FINANCING 
81.18 	EXTENSION.
 81.19 	Notwithstanding the provisions of Minnesota Statutes, section 469.176, or any other 
81.20 	law to the contrary, the city of Bloomington and its port authority may extend the duration 
81.21 	limits of Tax Increment Financing District No. 1-I, containing the Bloomington Central 
81.22 	Station property for a period through December 31, 2038.

81.23 	EFFECTIVE DATE. This section is effective upon compliance of the governing 
81.24 	body of the city of Bloomington with the requirements of Minnesota Statutes, sections 
81.25 	469.1782, subdivision 2, and 645.021, subdivision 3.

81.26 	ARTICLE 6
81.27 	SALES AND USE TAX

81.28 	Section 1. Minnesota Statutes 2010, section 297A.66, is amended by adding a 
81.29 	subdivision to read:
81.30 		Subd. 4a.Solicitor. (a) "Solicitor," for purposes of subdivision 1, paragraph (a), 
81.31 	means a person, whether an independent contractor or other representative, who directly 
81.32 	or indirectly solicits business for the retailer.
82.1 	(b) A retailer is presumed to have a solicitor in this state if it enters into an agreement 
82.2 	with a resident under which the resident, for a commission or other consideration, directly 
82.3 	or indirectly refers potential customers, whether by a link on an Internet Web site, or 
82.4 	otherwise, to the seller. This paragraph only applies if the total gross receipts from 
82.5 	sales to customers located in this state who were referred to the retailer by all residents 
82.6 	with this type of agreement with the retailer are at least $10,000 in the 12-month period 
82.7 	ending on the last day of the most recent calendar quarter before the calendar quarter in 
82.8 	which the sale is made.
82.9 	(c) The presumption under paragraph (a) may be rebutted by proof that the resident 
82.10 	with whom the retailer has an agreement did not engage in any solicitation in this state 
82.11 	on behalf of the retailer that would satisfy the nexus requirements of the United States 
82.12 	Constitution during the 12-month period in question. Nothing in this section shall be 
82.13 	construed to narrow the scope of the terms affiliate, agent, salesperson, canvasser, or other 
82.14 	representative for purposes of subdivision 1, paragraph (a).
82.15 	(d) For purposes of this paragraph, "resident" includes an individual who is a 
82.16 	resident of this state, as defined in section 290.01, or a business that owns tangible 
82.17 	personal property located in this state or has one or more employees providing services 
82.18 	for it in this state.

82.19 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
82.20 	June 30, 2012.

82.21 	ARTICLE 7
82.22 	MINNESOTA EDUCATION, RETRAINING, AND INVESTMENT 
82.23 	IN TALENT ACT

82.24 	Section 1. TITLE.
 82.25 	This article is the "Minnesota Education, Retraining, and Investment in Talent Act."

82.26 	Sec. 2. [136A.1271] FUND.
82.27 	The Minnesota education, retraining, and investment talent fund is created as a 
82.28 	special account in the state treasury. The fund consists of money deposited in the fund 
82.29 	under section 297A.651 and earnings on money in the fund. Funds in the account are 
82.30 	appropriated to the director of the Officer of Higher Education for the purpose of awarding 
82.31 	scholarships under section 136A.1272.

83.1 	Sec. 3. [136A.1272] MINNESOTA EDUCATION, RETRAINING, AND 
83.2 	INVESTMENT IN TALENT SCHOLARSHIP.
83.3 		Subdivision 1.Establishment. The Minnesota education, retraining, and investment 
83.4 	in talent scholarship program is established to provide scholarships to eligible students 
83.5 	within the limits of appropriations for the program.
83.6 		Subd. 2.Student eligibility. To be eligible to receive a scholarship under this 
83.7 	section, a student must:
83.8 	(1) graduate from a Minnesota high school, and graduate with an unweighted grade 
83.9 	point average of 3.0 or higher;
83.10 	(2) be a United States citizen or eligible noncitizen, as defined in section 484 of the 
83.11 	Higher Education Act, United States Code, title 20, sections 1091 et seq., as amended, 
83.12 	and Code of Federal Regulations, title 34, section 668.33;
83.13 	(3) meet satisfactory academic progress as defined under section 136A.101, 
83.14 	subdivision 10;
83.15 	(4) be a Minnesota resident, as defined in section 136A.101, subdivision 8; and
83.16 	(5) enroll full-time in a degree, diploma, or certificate program during the academic 
83.17 	year immediately following high school graduation at an eligible institution as defined 
83.18 	under section 136A.101, subdivision 4.
83.19 		Subd. 3.Administration. The scholarship program shall be administered by the 
83.20 	Minnesota Office of Higher Education. The director shall develop forms and procedures 
83.21 	necessary to administer the program.
83.22 		Subd. 4.Application. A student must complete and submit an application for 
83.23 	the scholarship.
83.24 		Subd. 5.Deadline. The deadline for the office to accept applications for scholarships 
83.25 	is the same as that used for the state grant in section 136A.121, subdivision 13.
83.26 		Subd. 6.Scholarship awards. The amount of the scholarship shall be determined 
83.27 	each year by dividing the funding available for scholarships by the number of eligible 
83.28 	applicants. The scholarship may be used to pay for qualifying expenses at eligible 
83.29 	institutions and hiring expenses of the student.
83.30 		Subd. 7.Qualifying expenses. Qualifying expenses are components included 
83.31 	under the cost of attendance used for federal student financial aid programs, as defined 
83.32 	in section 472 of the Higher Education Act, United States Code, title 20, sections 1091 
83.33 	et seq., as amended.
83.34 		Subd. 8.Eligible institutions. The achieve scholarship may only be used to 
83.35 	pay qualifying expenses at an eligible institution as defined under section 136A.101, 
83.36 	subdivision 4.