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HF 1303

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:48am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 03/04/2009

Current Version - as introduced

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A bill for an act
relating to gambling; proposing an amendment to the Minnesota Constitution by
adding a section to article XIII to authorize a casino; imposing a tax on gambling
revenue; providing for construction of a new stadium; authorizing sale of
revenue bonds; amending Minnesota Statutes 2008, sections 272.02, by adding
a subdivision; 297E.02, subdivisions 1, 4, 6; 299L.01, subdivision 4; 299L.07,
subdivisions 2, 2a; 340A.404, by adding a subdivision; 340A.410, subdivision 5;
349.31, by adding a subdivision; 541.20; 541.21; 609.75, subdivision 3; 609.761,
by adding a subdivision; proposing coding for new law in Minnesota Statutes,
chapter 349B; proposing coding for new law as Minnesota Statutes, chapter 473J.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

CONSTITUTIONAL AMENDMENT

Section 1. new text begin CONSTITUTIONAL AMENDMENT PROPOSED.
new text end

new text begin An amendment to the Minnesota Constitution is proposed to the people. If the
amendment is adopted, a section shall be added to article XIII, to read:
new text end

new text begin Sec. 13. new text end

new text begin The legislature, as provided by law, may authorize the state to issue and have
in force at any one time no more than one license for a privately owned casino. The
casino, if authorized, must be in the metropolitan area as defined in law. The term of the
license, if issued, must be 30 years. Some or all of the advance fee for the first license
issued and of the first 30 years' receipts from any new state tax imposed on the gaming
receipts of the casino must be used as provided by law to help finance the construction of a
stadium primarily for the long-term use of a major sports team; after all state financing of
the stadium is paid off, all the new sources of revenue may be used as provided by law.
new text end

Sec. 2. new text begin SUBMISSION TO VOTERS.
new text end

new text begin The proposed amendment must be submitted to the people at the 2010 general
election. The question submitted must be:
new text end

new text begin "Shall the Minnesota Constitution be amended to permit the state to issue and have
in force at any one time no more than one 30-year license for a privately owned casino, to
be located in the metropolitan area, and to dedicate the new sources of the state's revenue
from the casino, at first to help finance the construction of a new stadium primarily for the
long-term use of a major sports team; and after that to use the new sources of revenue
as provided by law?
new text end

new text begin Yes
.
new text end
new text begin No . "
new text end

ARTICLE 2

CASINO

Section 1.

Minnesota Statutes 2008, section 299L.01, subdivision 4, is amended to read:


Subd. 4.

Conflict of interest.

(a) The director and any person employed by the
division may not have a direct or indirect financial interest in:

(1) a class A or B licensee of the Racing Commission;

(2) a lottery retailer under contract with the State Lottery;

(3) a person who is under a lottery procurement contract with the State Lottery;

(4) a bingo hall, manufacturer, or distributor licensed under chapter 349; deleted text begin or
deleted text end

(5) a manufacturer or distributor licensed under this chapternew text begin ; or
new text end

new text begin (6) a casino licensee under chapter 349Bnew text end .

(b) The director or an employee of the Division of Alcohol and Gambling
Enforcement may not participate in the conducting of lawful gambling under chapter 349.

Sec. 2.

Minnesota Statutes 2008, section 299L.07, subdivision 2, is amended to read:


Subd. 2.

Exclusions.

Notwithstanding subdivision 1, a gambling device:

(1) may be sold by a person who is not licensed under this section, if the person (i) is
not engaged in the trade or business of selling gambling devices, and (ii) does not sell
more than one gambling device in any calendar year;

(2) may be sold by the governing body of a federally recognized Indian tribe
described in subdivision 2a, paragraph (b), clause (1), which is not licensed under this
section, if (i) the gambling device was operated by the Indian tribe, (ii) the sale is to
a distributor licensed under this section, and (iii) the licensed distributor notifies the
commissioner of the purchase, in the same manner as is required when the licensed
distributor ships a gambling device into Minnesota;

(3) may be possessed by a person not licensed under this section if the person holds
a permit issued under section 299L.08; deleted text begin anddeleted text end

(4) may be possessed by a state agency, with the written authorization of the director,
for display or evaluation purposes only and not for the conduct of gamblingnew text begin ; and
new text end

new text begin (5) may be possessed by a casino licensee under chapter 349Bnew text end .

Sec. 3.

Minnesota Statutes 2008, section 299L.07, subdivision 2a, is amended to read:


Subd. 2a.

Restrictions.

(a) A manufacturer licensed under this section may sell,
offer to sell, lease, or rent, in whole or in part, a gambling device only to a distributor
licensed under this section.

(b) A distributor licensed under this section may sell, offer to sell, market, rent,
lease, or otherwise provide, in whole or in part, a gambling device only to:

(1) the governing body of a federally recognized Indian tribe that is authorized
to operate the gambling device under a tribal state compact under the Indian Gaming
Regulatory Act, Public Law 100-497, and future amendments to it;

(2) a person for use in the person's dwelling for display or amusement purposes in a
manner that does not afford players an opportunity to obtain anything of value;

(3) another distributor licensed under this section; deleted text begin or
deleted text end

(4) a person in another state who is authorized under the laws of that state to possess
the gambling devicenew text begin ; or
new text end

new text begin (5) a casino licensee under chapter 349Bnew text end .

Sec. 4.

Minnesota Statutes 2008, section 340A.404, is amended by adding a
subdivision to read:


new text begin Subd. 8a. new text end

new text begin Licenses to casino. new text end

new text begin The commissioner may issue an on-sale intoxicating
liquor license to a casino licensee under chapter 349B. The premises licensed under
this subdivision need not be compact and contiguous but must be limited to the casino
premises as described in the approved casino license application. The commissioner shall
set the fee for the license in an amount sufficient to cover the commissioner's costs of
issuing and inspecting and other directly related costs of enforcement.
new text end

Sec. 5.

Minnesota Statutes 2008, section 340A.410, subdivision 5, is amended to read:


Subd. 5.

Gambling prohibited.

(a) Except as otherwise provided in this
subdivision, no retail establishment licensed to sell alcoholic beverages may keep, possess,
or operate, or permit the keeping, possession, or operation on the licensed premises of dice
or any gambling device as defined in section 349.30, or permit gambling therein.

(b) Gambling equipment may be kept or operated and raffles conducted on licensed
premises and adjoining rooms when the use of the gambling equipment is authorized by
(1) chapter 349, (2) a tribal ordinance in conformity with the Indian Gaming Regulatory
Act, Public Law 100-497, or (3) a tribal-state compact authorized under section 3.9221.

(c) Lottery tickets may be purchased and sold within the licensed premises as
authorized by the director of the lottery under chapter 349A.

(d) Dice may be kept and used on licensed premises and adjoining rooms as
authorized by section 609.761, subdivision 4.

new text begin (e) Gambling devices may be operated on the premises of a casino licensed under
chapter 349B.
new text end

Sec. 6.

Minnesota Statutes 2008, section 349.31, is amended by adding a subdivision
to read:


new text begin Subd. 3. new text end

new text begin Casino operation permitted. new text end

new text begin Sections 349.31 to 349.61 do not prohibit
the operation of gambling devices at a casino licensed under chapter 349B.
new text end

Sec. 7.

new text begin [349B.015] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Casino. new text end

new text begin "Casino" means a facility where the forms of gaming
authorized under section 349B.06, subdivision 2, are conducted.
new text end

new text begin Subd. 2. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of public safety.
new text end

new text begin Subd. 3. new text end

new text begin Gross gaming receipts. new text end

new text begin "Gross gaming receipts" means all revenue
received by a casino as wagers on gaming activities or as payment for chips or tokens
used in gaming activities at the casino, less amounts paid out by the casino as prizes and
winnings and for redemption of chips or tokens. Gross gaming receipts does not include
receipts from chips or tokens that have been purchased but have not been redeemed or
won back by the casino.
new text end

Sec. 8.

new text begin [349B.02] CASINO AUTHORIZED.
new text end

new text begin The commissioner may issue one license for the ownership and operation of a casino
in the metropolitan area, as defined in section 473.121, subdivision 2, to an applicant
meeting the requirements of this chapter.
new text end

Sec. 9.

new text begin [349B.03] CASINO LICENSE.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin An application for a casino license must be on a form
the commissioner prescribes and must be accompanied by detailed plans and specifications
of the casino, associated buildings, and surrounding grounds. The commissioner may
charge applicants a nonrefundable application fee to reimburse the commissioner's costs
for reviewing applications, conducting investigations, and carrying out other duties
related to the application process. The fee shall not exceed the commissioner's costs. The
application must contain:
new text end

new text begin (a) the name and address of the applicant and, if it is a corporation, the names of all
officers, directors, and shareholders of the corporation and any of its holding corporations;
new text end

new text begin (b) the names of any person or persons holding directly, indirectly, or beneficially in
interest of any kind in the applicant or any of its holding corporations, whether the interest
is financial, administrative, policy making, or supervisory;
new text end

new text begin (c) a statement of the assets and liabilities of the applicant;
new text end

new text begin (d) an affidavit executed by the applicant setting forth that not officer, director, or
other person with a present or future direct or indirect financial or management interest in
the casino, to the best of the applicant's knowledge:
new text end

new text begin (1) is in default in the payment of an obligation or debt to the state under this chapter;
new text end

new text begin (2) does not have a felony conviction of record in a state or federal court and does
not have a state or federal felony charge pending;
new text end

new text begin (3) is or has been connected with or engaged in any illegal business;
new text end

new text begin (4) has ever been found guilty of fraud or misrepresentation in connection with
any gambling activity; or
new text end

new text begin (5) has ever been found guilty of a violation of a law or rule relating to gambling;
new text end

new text begin (e) an irrevocable consent statement, to be signed by the applicant, which states that
suits and actions relating to the subject matter of the application or acts or omissions
arising from it may be commenced against the applicant in any court of competent
jurisdiction in the state by the service on the secretary of state of any summons, process,
or pleadings authorized by the laws of this state. If any summons, process, or pleadings
are served upon the secretary of state, it must be by duplicate copies. One copy must be
retained in the Office of the Secretary of State and the other copy must be forwarded
immediately by certified mail to the address of the applicant, as shown by the records
of the commission; and
new text end

new text begin (f) an affirmative action plan establishing goals and timetables consistent with the
Minnesota Human Rights Act, chapter 363.
new text end

new text begin Subd. 2. new text end

new text begin License fee. new text end

new text begin An applicant must, as part of the application, specify an
amount of money, not less than $......., that the licensee will pay to the state upon issuance
of the license as a onetime, lump-sum payment under section 349B.05, subdivision 1. The
amount of the onetime, lump-sum payment must be submitted and remain under seal until
the deadline for submission of applications has expired as provided in subdivision 6.
Until the license is awarded by the commissioner, the amount of the lump-sum payment
proposed by each applicant is classified as nonpublic data as defined in section 13.03.
new text end

new text begin Subd. 3. new text end

new text begin Investigation. new text end

new text begin Before granting a license under this section, the
commissioner shall conduct a comprehensive background and financial investigation
of the applicant and sources of financing.
new text end

new text begin Subd. 4. new text end

new text begin Hearings. new text end

new text begin Before granting a license under this section, the commissioner
shall conduct one or more public hearings in each area where a casino is proposed to be
located. The commissioner shall also request comments on the application from the city
council of the city where a casino is proposed to be located, or from the county board if
it is proposed to be located outside a city, and from the Metropolitan Council. If a city
council, or a county board if the casino is proposed to be located outside a city, notifies the
commissioner that it does not consent to being a site for the casino, the commissioner shall
not consider that location in granting a license.
new text end

new text begin Subd. 5. new text end

new text begin License issuance. new text end

new text begin (a) The commissioner may issue one casino license for a
facility. The term of a license under this section is 30 years.
new text end

new text begin (b) Upon receiving and considering each application for a casino license,
investigations of the applicant conducted by the commissioner, the results of the hearings
conducted under subdivision 3, the commissioner shall determine in the case of each
applicant whether the applicant is qualified for a license under this section based on:
new text end

new text begin (1) the effect of licensing the applicant on the public interest in effective regulation
and control of gaming;
new text end

new text begin (2) the applicant's financial resources and sources of financing;
new text end

new text begin (3) the applicant's applicable experience;
new text end

new text begin (4) the applicant's fitness to operate a casino without creating or enhancing the
dangers of unsuitable, unfair, or illegal practices, methods, and activities in the conduct of
gaming or the carrying on of business and financial arrangements incident to conducting
gaming; and
new text end

new text begin (5) the applicant's current ownership or leasehold interest in the site where the
applicant's proposed casino will be located.
new text end

new text begin (c) The commissioner shall select the best qualified applicant for the license
authorized to be issued under paragraph (a) based on the reasonably attainable economic
benefits to the state from the applicant's casino. The commissioner shall make this
selection based on:
new text end

new text begin (1) the amount of the applicant's onetime, lump-sum payment submitted under
seal with the license application;
new text end

new text begin (2) the long-term economic development potential of the applicant's casino;
new text end

new text begin (3) the job creation potential of the applicant's casino;
new text end

new text begin (4) the tourism generation potential of the applicant's casino, as measured by, among
other things, the vehicular traffic in the vicinity of the location, the location's proximity to
other tourist attractions, and the location's proximity to an international airport; and
new text end

new text begin (5) the long-term revenue potential to be realized by the state and political
subdivisions of the state from the applicant's casino.
new text end

new text begin Subd. 6. new text end

new text begin Requirements applicable to license applications; data practices. new text end

new text begin (a)
The commissioner shall establish and publish notice in the State Register of the deadline
for submission of casino license applications. The deadline must fall on a nonholiday
weekday by January 15, 2011.
new text end

new text begin (b) The amount of the onetime, lump-sum payment under section 349B.05 shall be
submitted under seal, separate from the application, to the commissioner. The amount
of the onetime, lump-sum payment submitted shall remain sealed until the deadline
established by the commissioner has lapsed. The sealed submission is classified as
nonpublic data for purposes of section 13.03 until the second calendar day following
issuance by the commissioner of notice of the license awards to the successful applicants.
After that time, the submission shall automatically be reclassified as public data under
section 13.03.
new text end

new text begin (c) Immediately after the deadline for submitting applications has lapsed, the
commissioner shall promptly unseal, review, and analyze each application as provided in
this chapter. The commissioner shall undertake the investigation and review prescribed in
subdivisions 3 and 4. The commissioner shall rank each application in priority, first to last.
The commissioner shall issue notice to the applicant that the commissioner determines
submitted the first-ranked application and publish notice of the license award in the State
Register by April 1, 2011.
new text end

new text begin (d) The license awarded by the commissioner shall be deemed conditional for
a period of 30 days. During the 30-day period following notice of issuance of the
license, any unsuccessful license applicant may review all other applications and data
accompanying the applications for the purpose of determining whether the successful
license applicant complied with the requirements of law or rule.
new text end

new text begin (e) If, within the 30 days, an unsuccessful license applicant reasonably concludes
the successful applicant failed in any material respect to comply with the requirements
set forth by law or rule, the unsuccessful license applicant may file a petition for review
and reconsideration with the commissioner and serve a copy of the petition on the
successful applicant. The petition must specifically identify requirements of law or
rule the successful applicant failed to satisfy and the deficiencies in the application.
The commissioner, in the commissioner's discretion, may invite the successful license
applicant to submit a written response within 14 days after the commissioner's receipt of
the petition. Petitions submitted under this section are subject to the good faith pleading
requirements and sanctions provisions of section 549.211, subdivision 2, and rule 11 of
the Minnesota Rules of Civil Procedure.
new text end

new text begin (f) The commissioner must issue a final decision on a petition within 30 days. The
commissioner's options are:
new text end

new text begin (1) to deny the petition and affirm the license award; or
new text end

new text begin (2) to grant the petition and suspend issuance of the license for up to 90 days.
new text end

new text begin If the commissioner grants the petition and suspends issuance of the license, the
commissioner shall issue an order informing the successful applicant of each requirement
of this chapter or the commissioner's rules the applicant failed to satisfy. Issuance of the
license shall remain suspended until the applicant has fully complied with and satisfied the
requirements of this chapter and the commissioner's rules. If the successful applicant fails
to do so within 90 days, the commissioner may revoke the license and award the license to
the second-ranked license applicant. Judicial review of the commissioner's actions under
this subdivision shall be accomplished by filing a writ of prohibition or mandamus with
the Minnesota Court of Appeals.
new text end

new text begin Subd. 7. new text end

new text begin Changes in ownership or management. new text end

new text begin If a change in the officers,
directors, shareholders, or other persons with a present or future direct or indirect financial
or management interest in the licensee, or a change of ownership of more than five percent
of the licensee's shares is made after the application is filed or the license issued, the
applicant or licensee must notify the commissioner of the changes within five days of their
occurrence and provide the affidavit required by subdivision 1, clause (d).
new text end

new text begin Subd. 8. new text end

new text begin License suspension and revocation. new text end

new text begin (a) The commissioner may revoke
a license under this section for (i) a violation of law, order, or rule; (ii) operation of a
casino in violation of approved game procedures or an approved security plan, which
in the commissioner's opinion adversely affects public health, welfare, or safety or the
integrity of gaming in Minnesota; (iii) an intentional false statement made in a license
application; or (iv) failure to perform material covenants or representations made in a
license application.
new text end

new text begin (b) The commissioner may:
new text end

new text begin (1) suspend a casino license for up to one year for an action described in paragraph
(a), clause (i) or (ii); and
new text end

new text begin (2) suspend a casino license indefinitely if the commissioner determines that the
licensee has an officer, director, shareholder, or other person with a direct, indirect, or
beneficial interest a person who is in the commissioner's opinion inimical to the public
health, welfare, or safety or the integrity of gaming in Minnesota, or who cannot be
certified under subdivision 1, clause (d).
new text end

new text begin (c) The commissioner may not revoke or suspend a license under this subdivision
unless the commissioner has granted the licensee a reasonable amount of time to cure the
violation giving rise to the revocation or suspension and, in the commissioner's reasonable
judgment, the licensee has failed to do so.
new text end

new text begin (d) A license revocation or suspension under this subdivision is a contested case
under sections 14.57 to 14.69 of the Administrative Procedure Act, and is in addition to
criminal penalties imposed for a violation of law or rule.
new text end

Sec. 10.

new text begin [349B.04] OCCUPATIONAL LICENSES.
new text end

new text begin Subdivision 1. new text end

new text begin License required. new text end

new text begin Any person employed at a licensed casino in
an occupation that the commissioner by order determines requires licensing in order to
ensure the public health, welfare, or safety, or the integrity of gaming in Minnesota, must
have a license issued by the commissioner.
new text end

new text begin Subd. 2. new text end

new text begin Application. new text end

new text begin (a) An application for a casino occupational license must
be on a form and in a manner prescribed by the commissioner. The application must be
accompanied by an affidavit of qualification that the applicant:
new text end

new text begin (1) does not have a felony conviction of record in a state or federal court and does
not have a state or federal felony charge pending;
new text end

new text begin (2) is not and never has been connected with or engaged in an illegal business;
new text end

new text begin (3) has never been found guilty of fraud or misrepresentation in connection with
gambling; and
new text end

new text begin (4) has never been found guilty of a serious violation of law or rule relating to
gambling.
new text end

new text begin (b) The application must also contain an irrevocable consent statement, to be signed
by the applicant, which states that suits and actions relating to the subject matter of the
application or acts or omissions arising from it may be commenced against the applicant in
any court of competent jurisdiction in this state by the service on the secretary of state of
any summons, process, or pleading authorized by the laws of this state. If any summons,
process, or pleading is served upon the secretary of state, it must be by duplicate copies.
One copy must be retained in the Office of the Secretary of State and the other copy must
be forwarded immediately by certified mail to the address of the applicant, as shown by
the records of the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin Investigations. new text end

new text begin The commissioner shall investigate each applicant for
a casino occupational license to the extent the commissioner deems necessary. The
commissioner may require that an applicant be fingerprinted or furnish the applicant's
fingerprints. Investigations must be conducted and their costs paid in the manner
prescribed by section 349B.03, subdivision 3. The commissioner may cooperate with
national and international organizations and agencies in conducting investigations. The
commissioner may by rule provide for examining the qualifications of an applicant for the
license being applied for.
new text end

new text begin Subd. 4. new text end

new text begin License issuance and renewal. new text end

new text begin If the commissioner determines that
the applicant is qualified for the occupation for which licensing is sought and will
not adversely affect the public health, welfare, and safety or the integrity of gaming in
Minnesota, the commissioner may issue a casino occupational license to the applicant. If
the commissioner makes a similar finding for a renewal of a casino occupational license
the commissioner may renew the license. Casino occupational licenses are effective for
one year.
new text end

new text begin Subd. 5. new text end

new text begin Revocation and suspension. new text end

new text begin (a) The commissioner may revoke a casino
occupational license for a violation of law or rule in which the commissioner's opinion
adversely affects the integrity of gaming in Minnesota, or for an intentional false statement
made in a license application. The commissioner may suspend a casino occupational
license for up to one year for a violation of law, order, or rule.
new text end

new text begin (b) The commissioner may not revoke or suspend a license under this subdivision
unless the commissioner has granted the licensee a reasonable amount of time to cure the
violation giving rise to the revocation or suspension and, in the commissioner's reasonable
judgment, the licensee has failed to do so.
new text end

new text begin (c) A license revocation or suspension for more than 90 days is a contested case
under sections 14.57 to 14.69 of the Administrative Procedure Act and is in addition
to criminal penalties imposed for a violation of law or rule. The commissioner may
summarily suspend a license for more than 90 days prior to a contested case hearing
where it is necessary to ensure the integrity of gaming. A contested case hearing must
be held within 20 days of the summary suspension and the administrative law judge's
report must be issued within 20 days from the close of the hearing record. In all cases
involving summary suspension the commissioner must issue a final decision within 30-
days from receipt of the report of the administrative law judge and subsequent exceptions
and argument under section 14.61.
new text end

Sec. 11.

new text begin [349B.05] LICENSE FEES AND PAYMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Onetime payment; license issuance. new text end

new text begin (a) As a condition of issuance
of a license under section 349B.03 the applicant must make to the commissioner, for
deposit into the stadium revenue bond guarantee fund provided in article 3 of this act, a
onetime payment of not less that $........ This payment may not be prorated or paid in
installments. The payment must be made before a casino license may be issued.
new text end

new text begin (b) No part of this payment may be refunded to the licensee unless, during the 30
years immediately following the date of license issuance:
new text end

new text begin (1) more than one casino license in the seven-county metropolitan area is authorized
by law;
new text end

new text begin (2) the provisions of this chapter authorizing operation of the casino are repealed;
new text end

new text begin (3) the legislature authorizes a new form of gambling that is not currently authorized
under chapter 240, 349, 349B, or any other provision of law; or
new text end

new text begin (4) new Indian gaming is approved within the seven-county metropolitan area on
land that is not currently held in trust by the Bureau of Indian Affairs for an existing
Minnesota Indian tribe.
new text end

new text begin (c) If one or more of these events occurs during that period, the licensee is entitled to
a refund of the payment at the rate of 1/30th of the payment per year each full or partial
year during the 30-year period in which an event described in paragraph (b), is in effect.
new text end

new text begin Subd. 2. new text end

new text begin License fee. new text end

new text begin A casino licensee must make to the director an annual
payment of $10,000 to hold a license issued under section 349B.03. The annual license
fee collected under this subdivision must be deposited in the general fund.
new text end

new text begin Subd. 3. new text end

new text begin Occupational licenses. new text end

new text begin The commissioner shall establish by rule a
schedule of fees, not exceeding $100 per year, for casino occupational licenses. License
payments must be deposited in the general fund.
new text end

Sec. 12.

new text begin [349B.06] GAME PROCEDURES.
new text end

new text begin Subdivision 1. new text end

new text begin Filing. new text end

new text begin A casino licensee under this chapter must file with the
commissioner a complete set of rules and procedures to govern all forms of gaming
authorized at the casino. The game procedures must specify payout percentages or ranges
of payout percentages for each form of gaming. The commissioner shall review the game
procedures and may approve them if the commissioner determines that they adequately
guarantee the integrity and fairness of gaming and the interests of casino patrons. A casino
licensee may not conduct gaming at the casino except in conformity with the approved
game procedures. The commissioner may conduct audits, inspections, and investigations
of gaming at the casino to ensure compliance with this section.
new text end

new text begin Subd. 2. new text end

new text begin Amendments. new text end

new text begin A casino licensee may amend approved game procedures
only if (1) the amendments have been filed with and approved by the commissioner, and
(2) a copy of the amended procedures have been available to the public at the facility for
at least three days before their adoption.
new text end

new text begin Subd. 3. new text end

new text begin Gaming authorized. new text end

new text begin Game procedures approved by the commissioner
may include only the following forms of gaming:
new text end

new text begin (1) card games including blackjack;
new text end

new text begin (2) bingo; and
new text end

new text begin (3) video gaming devices and slot machines.
new text end

new text begin Subd. 4. new text end

new text begin Agreement. new text end

new text begin An individual who participates in a game authorized at the
casino agrees to be bound by the rules and procedures applicable to that particular game.
new text end

Sec. 13.

new text begin [349B.07] SECURITY PLAN.
new text end

new text begin Subdivision 1. new text end

new text begin Filing. new text end

new text begin A casino licensee under this chapter must file with the
commissioner a comprehensive plan for security and surveillance at the casino. The
security plan must provide that security and surveillance will be undertaken only by
persons holding casino occupational licenses. The security plan must provide for the
testing of all gambling devices by the commissioner, or by a private entity under contract
to the commissioner. The commissioner shall review the security plan and my approve
it if the commissioner determines that it meets customary industry standards and is
reasonably adequate to ensure the integrity and safety of casino operations. A casino
licensee may not operate the casino except in conformity with the approved security plan.
The commissioner may conduct audits, inspections, and investigations of gambling at the
casino to ensure compliance with this section.
new text end

new text begin Subd. 2. new text end

new text begin Amendments. new text end

new text begin A casino licensee may amend a security plan only if the
amendments have been filed with and approved by the commissioner.
new text end

Sec. 14.

new text begin [349B.08] EXCLUSION OF CERTAIN PERSONS.
new text end

new text begin Subdivision 1. new text end

new text begin Persons excluded. new text end

new text begin The commissioner may by order exclude from
a licensed casino a person who:
new text end

new text begin (1) has a felony conviction of record under the laws of any state or the United States;
new text end

new text begin (2) has had a gaming-related license suspended, revoked, or denied by an authority
in another jurisdiction; or
new text end

new text begin (3) is determined by the commissioner, on the basis of evidence presented to the
commissioner, to be a threat to the integrity of gaming in Minnesota.
new text end

new text begin Subd. 2. new text end

new text begin Hearing; appeal. new text end

new text begin An order to exclude a person from a licensed casino
must be made by the commissioner at a public hearing of which the person to be excluded
must have at least five days' notice. If present at the hearing, the person must be permitted
to show cause why the exclusion should not be ordered. An appeal of the order may be
made in the same manner as other appeals under sections 14.63 to 14.68.
new text end

new text begin Subd. 3. new text end

new text begin Reasonable time to cure. new text end

new text begin The commissioner may not issue an order under
this subdivision unless the commissioner has granted the person who is the subject of the
order a reasonable amount of time to cure the violation or condition giving rise to the order
and, in the commissioner's reasonable judgment, the person has failed to do so.
new text end

new text begin Subd. 4. new text end

new text begin Prohibitions. new text end

new text begin It is a gross misdemeanor for a person named in a exclusion
order to enter, attempt to enter, or be on the premises of a licensed casino while the order
is in effect, and for a casino licensee knowingly to permit an excluded person to enter or
be on the premises.
new text end

new text begin Subd. 5. new text end

new text begin Exclusions by casino. new text end

new text begin A casino licensee may eject and exclude from the
casino premises any person who is in violation of any state law or commissioner's rule
or order or who is a threat to the integrity of gaming or the public safety. A person so
excluded from the casino premises may appeal the exclusion to the commissioner and
must be given a public hearing on the appeal upon request. At the hearing the person
must be given the opportunity to show cause why the exclusion should not have been
ordered. If the commissioner after the hearing finds that the integrity of gambling and the
public safety do not justify the exclusion, the commissioner shall order the casino licensee
making the exclusion to reinstate or readmit the person. An appeal of a commissioner's
order upholding the exclusion is governed by sections 14.63 to 14.68
new text end

Sec. 15.

new text begin [349B.081] DETENTION OF SUSPECTS.
new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin The commissioner, an agent of the commissioner, or a
security officer who is licensed under Minnesota Rules, chapter 7878, and is employed by
a casino licensee, may detain a person if probable cause exists to believe that the person
detained has violated section 609.76 while at a casino authorized by this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Circumstances justifying detention. new text end

new text begin (a) A person may be detained to:
new text end

new text begin (1) require the person to provide identification or to verify identification;
new text end

new text begin (2) inquire as to whether the person possesses any contraband as provided by section
609.762, subdivision 1;
new text end

new text begin (3) notify a peace officer of the alleged violation; or
new text end

new text begin (4) institute criminal proceedings against the person.
new text end

new text begin (b) The person detained must be promptly informed of the purpose of the detention
and may not be subjected to unnecessary or unreasonable force, nor to interrogation
against the person's will. If at any time the person detained requests the licensee to
summon a peace officer, the licensee must notify a peace officer immediately. A casino
licensee must not detain a person for more than one hour unless a peace officer requests
detention, in which case the person may be detained until the peace officer has accepted
custody of or released the person.
new text end

new text begin Subd. 3. new text end

new text begin Arrest. new text end

new text begin Upon a charge being made by a licensee, a peace officer may arrest
a person without a warrant if the officer has probable cause to believe that the person has
committed or attempted to commit an offense described in section 609.76.
new text end

new text begin Subd. 4. new text end

new text begin Immunity. new text end

new text begin No casino licensee or peace officer is criminally or civilly liable
for any detention authorized by this section if probable cause exists for the detention, and
the detention was not conducted with unreasonable force or in bad faith.
new text end

Sec. 16.

new text begin [349B.085] PERSONS UNDER 21.
new text end

new text begin A person under the age of 21 years may not enter, play a game at, or win a prize
from, a casino licensed under this chapter.
new text end

Sec. 17.

new text begin [349B.09] AUDIT.
new text end

new text begin The commissioner shall take all actions the commissioner determines necessary,
including appointment of one or more on-site auditors who are employees of the
Department of Public Safety, to ensure adequate accounting and auditing of funds and
finances of the casino. The commissioner shall arrange with the licensee for an annual
outside audit of the casino's financial operations. The licensee is responsible for costs
incurred for the annual audit.
new text end

Sec. 18.

new text begin [349B.10] PAYMENT TO STATE.
new text end

new text begin Subdivision 1. new text end

new text begin Tax imposed. new text end

new text begin There is imposed a tax on gaming conducted at the
casino under this chapter at the rate of 15 percent of gross gaming receipts but not less
than $15,000,000 in any license year.
new text end

new text begin Subd. 2. new text end

new text begin Payment. new text end

new text begin The casino licensee must make payments of the tax due under
subdivision 1 to the commissioner of revenue in monthly installments. The casino licensee
must make payments for each month within 30 days after the end of the month. The
guaranteed balance, if necessary, must be made within 30 days after the end of each
license year. Payments under this subdivision must be made in a manner and on a form
prescribed by the commissioner of revenue.
new text end

new text begin Subd. 3. new text end

new text begin Revenue. new text end

new text begin Revenue collected by the commissioner of revenue under this
section must be deposited in the state treasury and credited as follows:
new text end

new text begin (1) 70 percent and any guaranteed annual balance payment to the stadium revenue
debt service fund;
new text end

new text begin (2) 0.5 percent to a compulsive gambling account in the state treasury. Money in this
account is annually appropriated to the commissioner of human services for the treatment
of compulsive gambling under section 245.98; and
new text end

new text begin (3) remainder to the general fund.
new text end

new text begin A portion of the revenue credited to the general fund under this section must be used
to increase the base-level funding of the Division of Alcohol and Gambling Enforcement
to provide for additional inspectors and other costs related to regulating the casino.
new text end

Sec. 19.

new text begin [349B.11] COMPULSIVE GAMBLING HOTLINE POSTING.
new text end

new text begin A casino licensee must post prominently at locations throughout the casino, in a
manner approved by the commissioner of human services, the toll-free telephone number
established by the commissioner of human services in connection with the compulsive
gambling program.
new text end

Sec. 20.

new text begin [349B.12] LOCAL LICENSE.
new text end

new text begin Except as specifically provided otherwise by law, no political subdivision may
require a license, permit, or any other means of approval to operate a casino, regulate or
restrict gaming authorized at a casino, or impose a tax or fee on the conduct of gaming
authorized at the casino.
new text end

Sec. 21.

Minnesota Statutes 2008, section 541.20, is amended to read:


541.20 RECOVERY OF MONEY LOST.

Every person who, by playing at cards, dice, or other game, or by betting on the hands
or sides of such as are gambling, shall lose to any person so playing or betting any sum of
money or any goods, and pays or delivers the same, or any part thereof, to the winner,
may sue for and recover such money by a civil action, before any court of competent
jurisdiction. For purposes of this section, gambling shall not include pari-mutuel wagering
conducted under a license issued pursuant to chapter 240, purchase or sale of tickets in the
state lottery, or gambling authorized under deleted text begin chaptersdeleted text end new text begin chapternew text end 349 deleted text begin anddeleted text end new text begin ,new text end 349Anew text begin , or 349Bnew text end .

Sec. 22.

Minnesota Statutes 2008, section 541.21, is amended to read:


541.21 COMMITMENTS FOR GAMBLING DEBT VOID.

Every note, bill, bond, mortgage, or other security or conveyance in which the whole
or any part of the consideration shall be for any money or goods won by gambling or
playing at cards, dice, or any other game whatever, or by betting on the sides or hands
of any person gambling, or for reimbursing or repaying any money knowingly lent or
advanced at the time and place of such gambling or betting, or lent and advanced for any
gambling or betting to any persons so gambling or betting, shall be void and of no effect
as between the parties to the same, and as to all persons except such as hold or claim
under them in good faith, without notice of the illegality of the consideration of such
contract or conveyance. The provisions of this section shall not apply to: (1) pari-mutuel
wagering conducted under a license issued pursuant to chapter 240; (2) purchase of tickets
in the state lottery under chapter 349A; (3) gaming activities conducted pursuant to the
Indian Gaming Regulatory Act, 25 U.S.C. 2701 et seq.; deleted text begin ordeleted text end (4) lawful gambling activities
permitted under chapter 349new text begin ; or (5) gaming licensed under chapter 349Bnew text end .

Sec. 23.

Minnesota Statutes 2008, section 609.75, subdivision 3, is amended to read:


Subd. 3.

What are not bets.

The following are not bets:

(1) a contract to insure, indemnify, guarantee or otherwise compensate another for a
harm or loss sustained, even though the loss depends upon chance;

(2) a contract for the purchase or sale at a future date of securities or other
commodities;

(3) offers of purses, prizes or premiums to the actual contestants in any bona fide
contest for the determination of skill, speed, strength, endurance, or quality or to the bona
fide owners of animals or other property entered in such a contest;

(4) the game of bingo when conducted in compliance with sections 349.11 to 349.23;

(5) a private social bet not part of or incidental to organized, commercialized, or
systematic gambling;

(6) the operation of equipment or the conduct of a raffle under sections 349.11 to
349.22, by an organization licensed by the Gambling Control Board or an organization
exempt from licensing under section 349.166;

(7) pari-mutuel betting on horse racing when the betting is conducted under chapter
240; deleted text begin and
deleted text end

(8) the purchase and sale of state lottery tickets under chapter 349Anew text begin ; and
new text end

new text begin (9) gaming licensed under chapter 349Bnew text end .

Sec. 24.

Minnesota Statutes 2008, section 609.761, is amended by adding a subdivision
to read:


new text begin Subd. 2a. new text end

new text begin Licensed casino. new text end

new text begin Sections 609.755 and 609.76 do not prohibit the
operation of a casino licensed under chapter 349B.
new text end

ARTICLE 3

STADIUM FUNDING FOR VIKINGS

Section 1.

Minnesota Statutes 2008, section 272.02, is amended by adding a
subdivision to read:


new text begin Subd. 90. new text end

new text begin Property taxes. new text end

new text begin Real or personal property acquired, owned, leased,
controlled, used, or occupied as a stadium by the Vikings under this act is exempt from
taxation but the property is subject to special assessments levied by a political subdivision
under chapter 429. The stadium includes parking facilities and land necessary to and part
of the use of the stadium. A use of the property in any manner different from its use as
a stadium must not be considered in determining the special benefit under chapter 429
received by the properties. Notwithstanding section 272.01, subdivision 2, or 273.19, real
or personal property on the premises of the stadium leased by a local public partner that
operates the stadium to another person or entity for uses directly related to the operation of
the stadium is exempt from taxation regardless of the length of the lease. This subdivision
expires one month after repayment of the bonds issued to finance the stadium.
new text end

Sec. 2.

new text begin [473J.01] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin The definitions in this section apply in this article.
new text end

new text begin Subd. 2. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of finance.
new text end

new text begin Subd. 3. new text end

new text begin Local public partner. new text end

new text begin "Local public partner" means a city or county, or
a city and its county acting jointly, chosen as otherwise provided by law to develop and
construct a stadium, for the primary use of the Minnesota Vikings, on the local public
partner's site or sites, subject to a long-term use agreement with the team using each
stadium.
new text end

Sec. 3.

new text begin [473J.02] AUTHORITY TO ISSUE REVENUE BONDS; PURPOSE.
new text end

new text begin Subdivision 1. new text end

new text begin For stadium. new text end

new text begin The commissioner of finance may issue up to $....... of
aggregate principal amount of revenue bonds, the proceeds of which must be deposited in
the stadium revenue bond proceeds fund in the state treasury to be used to make grants
or loans to the local public partners and the Vikings, as appropriate, to help to pay to
predesign, design, construct, furnish, and equip a stadium for the Vikings or to pay debt
service for loans for the construction of the stadium. The conditions and terms related
to the issuance of the bonds are as provided in this act and in other law and agreements
and other bond and construction financing instruments that are in the determination of the
commissioner of the commissioner's agent or trustee necessary or desirable in transactions
of this kind to achieve the public purpose of this act and to ensure the provision of
adequate security for the payment when due of the interest of, and principal on, the bonds
authorized, issued, and sold as provided in this act.
new text end

new text begin Subd. 2. new text end

new text begin Authority not affected by taxability of interest. new text end

new text begin The bonds authorized
by this section may be issued without regard to whether the interest to be paid on them
is gross income for federal tax purposes.
new text end

Sec. 4.

new text begin [473J.03] PROCESS TO CONSTRUCT AND FINANCE STADIUMS.
new text end

new text begin Subdivision 1. new text end

new text begin Deadlines for notice to commissioner. new text end

new text begin The Vikings and their local
public partner must notify the commissioner by January 1, 2012, of their agreement to
all the terms of their obligation necessary to proceed with the financing and construction
of the stadium.
new text end

new text begin Subd. 2. new text end

new text begin Team agreement to lease; commitments. new text end

new text begin (a) In addition to other terms
and conditions of its agreement with the commissioner and its local public partner, not
inconsistent with this act, the Vikings must agree to use the stadium built for it for at
least 30 years.
new text end

new text begin (b) The Vikings with its local public partner must also satisfy the commissioner
that each has made or received from other nonstate sources financial commitments
sufficient to complete its stadium's construction when the commitments are added to the
state contribution.
new text end

new text begin Subd. 3. new text end

new text begin Cost overruns. new text end

new text begin Before making final payments on the grants or loans under
this act, the commissioner must determine that all cost overruns for the stadium, if any,
must be paid by the team owner or the local public partners from nonstate sources.
new text end

new text begin Subd. 4. new text end

new text begin Appropriation. new text end

new text begin The amounts necessary to make the grants and loans
authorized in this act are appropriated from the stadium revenue bond proceeds fund in
the state treasury to the commissioner to make grants or loans for the construction of a
Vikings stadium as otherwise provided in this act.
new text end

new text begin Subd. 5. new text end

new text begin Covenants, pledges; guaranties. new text end

new text begin The commissioner, or the
commissioner's agent or trustee for this purpose, may require additional covenants,
pledges, and guaranties as are necessary or desirable to secure the payment when due of
all debt service under this act and to ensure the accomplishment of all obligations of the
parties that relate to that security.
new text end

Sec. 5.

new text begin [473J.04] NO TAX RATE HIKES BECAUSE OF STADIUM.
new text end

new text begin The rate of all state and local taxes inside the stadium on admissions and sales or use
of goods and services must not exceed the tax rate on admissions to other facilities and on
sales or use of goods and services outside the stadium in the same taxing jurisdiction.
new text end

Sec. 6.

new text begin [473J.05] PROCEDURE; PLEDGE; PAYMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Bonds paid with debt service funds. new text end

new text begin The revenue bonds authorized
by this act must be sold and issued by the commissioner in the manner and upon the
terms and conditions generally provided by sections 16A.672 to 16A.675 for the sale
and issuance of bonds and certificates of indebtedness, except as otherwise provided
in this act. The bonds are payable only from and secured by an irrevocable pledge of
the revenues to be derived from gifts and investment returns on them and other money
deposited in the stadium debt service fund and stadium debt service guaranty fund as
provided in this act or other law.
new text end

new text begin Subd. 2. new text end

new text begin No full faith and credit of the state. new text end

new text begin The legislature must not appropriate
money from the general fund to pay for these bonds. The bonds are not public debt and
the full faith and credit and taxing powers of the state are not pledged for their payment.
new text end

new text begin Subd. 3. new text end

new text begin No other state taxes. new text end

new text begin The revenue bonds authorized in this act and the
interest on them must not be paid, directly or indirectly, in whole or in part, from a tax of
statewide application on any class of property, income, transaction, or privilege except as
specifically provided in this act.
new text end

new text begin Subd. 4. new text end

new text begin Form. new text end

new text begin The bonds may:
new text end

new text begin (1) bear the date or dates;
new text end

new text begin (2) mature serially at a time or times not exceeding 30 years from their date or dates;
new text end

new text begin (3) be in the form;
new text end

new text begin (4) carry the registration privileges;
new text end

new text begin (5) be payable at a place or places;
new text end

new text begin (6) be subject to terms of redemption prior to maturity with or without premium;
new text end

new text begin (7) be delivered to the purchasers at times and places; and
new text end

new text begin (8) contain terms and covenants, consistent with this act, all as may be provided by
order of the commissioner directing the issuance of the bonds as authorized in this act.
new text end

new text begin Subd. 5. new text end

new text begin Execution. new text end

new text begin The bonds must be executed by the officers designated by the
commissioner to execute them, in the manner authorized by sections 16A.672 to 16A.675.
new text end

new text begin Subd. 6. new text end

new text begin Bond statement; registration. new text end

new text begin Each bond shall state upon its face that
it is payable solely from and secured by an irrevocable pledge of the revenues referred
to in subdivision 1 and that it does not constitute a debt or obligation of the state of
Minnesota within the meaning or application of any constitutional or statutory limitation
or provision. A copy of the order of the commissioner in the issuance of the bonds must
be maintained by the commissioner.
new text end

new text begin Subd. 7. new text end

new text begin Debt service; stadium revenue bonds. new text end

new text begin (a) The commissioner must pay
from irrevocable appropriations from the stadium revenue bond debt service fund or
otherwise provide for the payment of the interest coming due on the revenue bonds, until
paid, and for the payment of the principal and any premium coming due on the bonds
at maturity or upon any earlier date upon which the bonds are called for redemption.
Sections 16A.672 to 16A.675 apply to the bonds.
new text end

new text begin (b) Of the tax imposed on gross gaming receipts of the casino, 70 percent must be
deposited monthly in the stadium revenue bond debt service fund established in chapter
349B along with all of any guaranteed annual balance payment to pay when due all
principal and interest payments on the revenue bonds issued under this article. When all
the debt service is paid and all the bonds are retired or defeased, the deposits required by
this paragraph may instead be deposited in the general fund. The money necessary to
make the debt service payments under this paragraph is appropriated.
new text end

Sec. 7.

new text begin [473J.06] DEBT SERVICE FUND INVESTMENTS.
new text end

new text begin Money not currently needed in the stadium revenue bond debt service fund and
in the stadium debt service guaranty fund as determined by the commissioner may be
invested by the State Board of Investment, in the same manner and extent as investments
are authorized by section 11.24 for certain state retirements funds.
new text end

Sec. 8.

new text begin [473J.07] STADIUM REVENUE BOND GUARANTY FUND.
new text end

new text begin The commissioner of finance must deposit the onetime casino license fee described
in section 349B.05 into the stadium revenue bond guaranty fund. The money in the fund
must be used to pay, when due, the debt service on revenue bonds issued under this act if
the primary source of revenue for the debt service is not sufficient to pay the debt service
when due as determined by the commissioner according to law and trust agreements and
other documents related to the issuance and sale of the bonds. Money not currently needed
for the purpose of the fund, as determined by the commissioner, may be invested by the
State Board of Investment, in the same manner as investments are authorized by section
11.24 for certain state retirement funds. When all debt service is paid and the bonds are
retired or defeased, the money in the fund must be deposited in the general fund. The
payments necessary under this section are appropriated.
new text end

Sec. 9.

new text begin [473J.08] PRIORITY OF CONSTRUCTION START.
new text end

new text begin Construction of the Vikings stadium must begin no later than January 1, 2010.
new text end

Sec. 10.

new text begin [473J.09] REORDERED PRIORITY IF DELAY.
new text end

new text begin If the team and site owner do not meet the deadline to start construction under
this act, the priority for that stadium is lost and the priority of a stadium with a later
construction start deadline may be advanced in order and to the extent possible, in time, as
determined by the commissioner.
new text end

Sec. 11.

new text begin [473J.10] CONSTRUCTION; LABOR AND MATERIALS.
new text end

new text begin By the time of the construction starts required in section 473J.09, the Vikings must
have entered into an agreement with its local public partner and the commissioner, that
obligates the local public partner, and the team, as applicable, to comply with at least
the following provisions:
new text end

new text begin (1) requiring the payment of the prevailing wage rate as defined in section 177.42 to
all construction workers;
new text end

new text begin (2) requiring the provision to the local public partner of a signed agreement between
the team and the construction unions that will work on the stadium that mandates a
no-strike and no-lockout period during construction of the stadium; and
new text end

new text begin (3) requiring that all construction materials for the stadium produced from or
containing steel, so far as practicable, must use steel produced in the United States from
taconite produced in Minnesota.
new text end

ARTICLE 4

LAWFUL GAMBLING

Section 1.

Minnesota Statutes 2008, section 297E.02, subdivision 1, is amended to read:


Subdivision 1.

Imposition.

A tax is imposed on all lawful gambling other than
(1) pull-tab deals or games; (2) tipboard deals or games; and (3) items listed in section
297E.01, subdivision 8, clauses (4) and (5), at the rate of deleted text begin 8.5deleted text end new text begin 7.5new text end percent on the gross
receipts as defined in section 297E.01, subdivision 8, less prizes actually paid. The tax
imposed by this subdivision is in lieu of the tax imposed by section 297A.62 and all
local taxes and license fees except a fee authorized under section 349.16, subdivision 8,
or a tax authorized under subdivision 5.

The tax imposed under this subdivision is payable by the organization or party
conducting, directly or indirectly, the gambling.

Sec. 2.

Minnesota Statutes 2008, section 297E.02, subdivision 4, is amended to read:


Subd. 4.

Pull-tab and tipboard tax.

(a) A tax is imposed on the sale of each deal of
pull-tabs and tipboards sold by a distributor. The rate of the tax is deleted text begin 1.7deleted text end new text begin 1.5new text end percent of the
ideal gross of the pull-tab or tipboard deal. The sales tax imposed by chapter 297A on the
sale of the pull-tabs and tipboards by the distributor is imposed on the retail sales price
less the tax imposed by this subdivision. The retail sale of pull-tabs or tipboards by the
organization is exempt from taxes imposed by chapter 297A and is exempt from all local
taxes and license fees except a fee authorized under section 349.16, subdivision 8.

(b) The liability for the tax imposed by this section is incurred when the pull-tabs
and tipboards are delivered by the distributor to the customer or to a common or contract
carrier for delivery to the customer, or when received by the customer's authorized
representative at the distributor's place of business, regardless of the distributor's method
of accounting or the terms of the sale.

The tax imposed by this subdivision is imposed on all sales of pull-tabs and
tipboards, except the following:

(1) sales to the governing body of an Indian tribal organization for use on an Indian
reservation;

(2) sales to distributors licensed under the laws of another state or of a province of
Canada, as long as all statutory and regulatory requirements are met in the other state or
province;

(3) sales of promotional tickets as defined in section 349.12; and

(4) pull-tabs and tipboards sold to an organization that sells pull-tabs and tipboards
under the exemption from licensing in section 349.166, subdivision 2. A distributor shall
require an organization conducting exempt gambling to show proof of its exempt status
before making a tax-exempt sale of pull-tabs or tipboards to the organization. A distributor
shall identify, on all reports submitted to the commissioner, all sales of pull-tabs and
tipboards that are exempt from tax under this subdivision.

(c) A distributor having a liability of $120,000 or more during a fiscal year ending
June 30 must remit all liabilities in the subsequent calendar year by electronic means.

(d) Any customer who purchases deals of pull-tabs or tipboards from a distributor
may file an annual claim for a refund or credit of taxes paid pursuant to this subdivision
for unsold pull-tab and tipboard tickets. The claim must be filed with the commissioner on
a form prescribed by the commissioner by March 20 of the year following the calendar
year for which the refund is claimed. The refund must be filed as part of the customer's
February monthly return. The refund or credit is equal to deleted text begin 1.7deleted text end new text begin 1.5new text end percent of the face value
of the unsold pull-tab or tipboard tickets, provided that the refund or credit will be deleted text begin 1.75deleted text end new text begin 1.6new text end
percent of the face value of the unsold pull-tab or tipboard tickets for claims for a refund
or credit of taxes filed on the February deleted text begin 2001deleted text end new text begin 2011new text end monthly return. The refund claimed
will be applied as a credit against tax owing under this chapter on the February monthly
return. If the refund claimed exceeds the tax owing on the February monthly return, that
amount will be refunded. The amount refunded will bear interest pursuant to section
270C.405 from 90 days after the claim is filed.

Sec. 3.

Minnesota Statutes 2008, section 297E.02, subdivision 6, is amended to read:


Subd. 6.

Combined receipts tax.

In addition to the taxes imposed under
subdivisions 1 and 4, a tax is imposed on the combined receipts of the organization. As
used in this section, "combined receipts" is the sum of the organization's gross receipts
from lawful gambling less gross receipts directly derived from the conduct of bingo,
raffles, and paddle wheels, as defined in section 297E.01, subdivision 8, for the fiscal year.
The combined receipts of an organization are subject to a tax computed according to
the following schedule:

If the combined receipts
for the fiscal year are:
The tax is:
Not over $500,000
zero
Over $500,000,
but not over $700,000
deleted text begin 1.7deleted text end new text begin 1.5new text end percent of the amount over
$500,000, but not over $700,000
Over $700,000,
but not over $900,000
deleted text begin $3,400deleted text end new text begin $3,000new text end plus deleted text begin 3.4deleted text end new text begin 3.0new text end percent of
the amount over $700,000, but not
over $900,000
Over $900,000
deleted text begin $10,200deleted text end new text begin $9,000new text end plus deleted text begin 5.1deleted text end new text begin 4.5new text end percent
of the amount over $900,000

ARTICLE 5

EFFECTIVE DATE

Section 1. new text begin EFFECTIVE DATE.
new text end

new text begin Articles 2, 3, and 4 are effective January 1, 2011, if the constitutional amendment
proposed in article 1 is adopted by the people at the 2010 general election.
new text end