Minnesota Legislature
HF 1716
as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am
KEY: stricken = removed, old language.
underscored = added, new language.
Bill Text Versions
| Engrossments | ||
|---|---|---|
| Introduction | Posted on 01/08/2004 |
Current Version - as introduced
1.1 A bill for an act 1.2 proposing an amendment to the Minnesota Constitution 1.3 by adding a section to article XIII; authorizing the 1.4 commissioner of public safety to issue a casino 1.5 license; providing for regulation and taxation of 1.6 casino; authorizing the issuance of state revenue 1.7 bonds; providing a process for the construction and 1.8 financing of sports stadiums for the Minnesota Twins, 1.9 the University of Minnesota Football Gophers, and the 1.10 Minnesota Vikings; adjusting rates of tax on lawful 1.11 gambling; appropriating money; amending Minnesota 1.12 Statutes 2002, sections 272.02, by adding a 1.13 subdivision; 297E.02, subdivisions 1, 4, 6; 299L.07, 1.14 subdivisions 2, 2a; 340A.410, subdivision 5; 349.31, 1.15 by adding a subdivision; 541.20; 541.21; 609.75, 1.16 subdivision 3; 609.761, by adding a subdivision; 1.17 proposing coding for new law in Minnesota Statutes, 1.18 chapter 349B. 1.19 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.20 ARTICLE 1 1.21 CONSTITUTIONAL AMENDMENT 1.22 Section 1. [CONSTITUTIONAL AMENDMENT PROPOSED.] 1.23 An amendment to the Minnesota Constitution is proposed to 1.24 the people. If the amendment is adopted, a section shall be 1.25 added to article XIII to read: 1.26 Sec. 13. The legislature, as provided by law, may 1.27 authorize the state to issue and have in force at any one time 1.28 no more than one license for a privately owned casino. The 1.29 casino, if authorized, must be in the metropolitan area as 1.30 defined in law. The term of the license, if issued, must be 30 1.31 years. Some or all of the advance fee for the first license 1.32 issued and of the first 30 years' receipts from any new state 2.1 tax imposed on the gaming receipts of the casino must be used as 2.2 provided by law to help finance no more than three stadiums 2.3 primarily for the long-term use of major sports teams; after the 2.4 first license expires and the first 30 years of operation of the 2.5 casino, the new sources of revenue may be used as provided by 2.6 law. 2.7 Sec. 2. [SUBMISSION TO VOTERS.] 2.8 The proposed amendment shall be submitted to the people at 2.9 the 2004 general election. The question submitted shall be: 2.10 "Shall the Minnesota Constitution be amended to permit the 2.11 state, as provided by law, to issue and have in force at any one 2.12 time no more than one 30-year license for a privately owned 2.13 casino, to be located in the metropolitan area, and to use some 2.14 or all of the new sources of the state's revenue from the 2.15 casino, at first to help finance no more than three stadiums 2.16 primarily for the long-term use of major sports teams; and after 2.17 that to use the new sources of revenue as provided by law? 2.18 Yes ....... 2.19 No ........" 2.20 ARTICLE 2 2.21 CASINO 2.22 Section 1. Minnesota Statutes 2002, section 299L.07, 2.23 subdivision 2, is amended to read: 2.24 Subd. 2. [EXCLUSIONS.] Notwithstanding subdivision 1, a 2.25 gambling device: 2.26 (1) may be sold by a person who is not licensed under this 2.27 section, if the person (i) is not engaged in the trade or 2.28 business of selling gambling devices, and (ii) does not sell 2.29 more than one gambling device in any calendar year; 2.30 (2) may be sold by the governing body of a federally 2.31 recognized Indian tribe described in subdivision 2a, paragraph 2.32 (b), clause (1), which is not licensed under this section, if 2.33 (i) the gambling device was operated by the Indian tribe, (ii) 2.34 the sale is to a distributor licensed under this section, and 2.35 (iii) the licensed distributor notifies the commissioner of the 2.36 purchase, in the same manner as is required when the licensed 3.1 distributor ships a gambling device into Minnesota; 3.2 (3) may be possessed by a person not licensed under this 3.3 section if the person holds a permit issued under section 3.4 299L.08;and3.5 (4) may be possessed by a state agency, with the written 3.6 authorization of the director, for display or evaluation 3.7 purposes only and not for the conduct of gambling; and 3.8 (5) may be possessed by a casino licensee under chapter 3.9 349B. 3.10 Sec. 2. Minnesota Statutes 2002, section 299L.07, 3.11 subdivision 2a, is amended to read: 3.12 Subd. 2a. [RESTRICTIONS.] (a) A manufacturer licensed 3.13 under this section may sell, offer to sell, lease, or rent, in 3.14 whole or in part, a gambling device only to a distributor 3.15 licensed under this section. 3.16 (b) A distributor licensed under this section may sell, 3.17 offer to sell, market, rent, lease, or otherwise provide, in 3.18 whole or in part, a gambling device only to: 3.19 (1) the governing body of a federally recognized Indian 3.20 tribe that is authorized to operate the gambling device under a 3.21 tribal state compact under the Indian Gaming Regulatory Act, 3.22 Public Law 100-497, and future amendments to it; 3.23 (2) a person for use in the person's dwelling for display 3.24 or amusement purposes in a manner that does not afford players 3.25 an opportunity to obtain anything of value; 3.26 (3) another distributor licensed under this section;or3.27 (4) a person in another state who is authorized under the 3.28 laws of that state to possess the gambling device; or 3.29 (5) a casino licensee under chapter 349B. 3.30 Sec. 3. Minnesota Statutes 2002, section 340A.410, 3.31 subdivision 5, is amended to read: 3.32 Subd. 5. [GAMBLING PROHIBITED.] (a) Except as otherwise 3.33 provided in this subdivision, no retail establishment licensed 3.34 to sell alcoholic beverages may keep, possess, or operate, or 3.35 permit the keeping, possession, or operation on the licensed 3.36 premises of dice or any gambling device as defined in section 4.1 349.30, or permit gambling therein. 4.2 (b) Gambling equipment may be kept or operated and raffles 4.3 conducted on licensed premises and adjoining rooms when the use 4.4 of the gambling equipment is authorized by (1) chapter 349, (2) 4.5 a tribal ordinance in conformity with the Indian Gaming 4.6 Regulatory Act, Public Law 100-497, or (3) a tribal-state 4.7 compact authorized under section 3.9221. 4.8 (c) Lottery tickets may be purchased and sold within the 4.9 licensed premises as authorized by the director of the lottery 4.10 under chapter 349A. 4.11 (d) Dice may be kept and used on licensed premises and 4.12 adjoining rooms as authorized by section 609.761, subdivision 4. 4.13 (e) Gambling devices may be operated on the premises of a 4.14 casino licensed under chapter 349B. 4.15 Sec. 4. Minnesota Statutes 2002, section 349.31, is 4.16 amended by adding a subdivision to read: 4.17 Subd. 3. [CASINO OPERATION PERMITTED.] Sections 349.31 to 4.18 349.61 do not prohibit the operation of gambling devices at a 4.19 casino licensed under chapter 349B. 4.20 Sec. 5. [349B.015] [DEFINITIONS.] 4.21 Subdivision 1. [CASINO.] "Casino" means a facility where 4.22 the forms of gaming authorized under section 349B.06, 4.23 subdivision 2, are conducted. 4.24 Subd. 2. [COMMISSIONER.] "Commissioner" means the 4.25 commissioner of public safety. 4.26 Subd. 3. [GROSS GAMING RECEIPTS.] "Gross gaming receipts" 4.27 means all revenue received by a casino as wagers on gaming 4.28 activities. "Gross gaming receipts" does not include receipts 4.29 from chips or tokens that have been purchased but have not been 4.30 redeemed or won back by the casino. 4.31 Sec. 6. [349B.02] [CASINO AUTHORIZED.] 4.32 The commissioner may issue one license for the ownership 4.33 and operation of a casino in the seven-county metropolitan area, 4.34 as defined in section 473.121, subdivision 2, to an applicant 4.35 meeting the requirements of this chapter. 4.36 Sec. 7. [349B.03] [CASINO LICENSE.] 5.1 Subdivision 1. [APPLICATION.] An application for a casino 5.2 license must be on a form the commissioner prescribes and must 5.3 be accompanied by detailed plans and specifications of the 5.4 casino, associated buildings, and surrounding grounds. The 5.5 application must contain: 5.6 (a) the name and address of the applicant and, if it is a 5.7 corporation, the names of all officers, directors, and 5.8 shareholders of the corporation and any of its holding 5.9 corporations; 5.10 (b) the names of any person or persons holding directly, 5.11 indirectly, or beneficially an interest of any kind in the 5.12 applicant or any of its holding corporations, whether the 5.13 interest is financial, administrative, policy making, or 5.14 supervisory; 5.15 (c) a statement of the assets and liabilities of the 5.16 applicant; 5.17 (d) an affidavit executed by the applicant setting forth 5.18 that no officer, director, or other person with a present or 5.19 future direct or indirect financial or management interest in 5.20 the casino, to the best of the applicant's knowledge: 5.21 (1) is in default in the payment of an obligation or debt 5.22 to the state under this chapter; 5.23 (2) does not have a felony conviction of record in a state 5.24 or federal court and does not have a state or federal felony 5.25 charge pending; 5.26 (3) is or has been connected with or engaged in any illegal 5.27 business; 5.28 (4) has ever been found guilty of fraud or 5.29 misrepresentation in connection with any gambling activity; or 5.30 (5) has ever been found guilty of a violation of a law or 5.31 rule relating to gambling; 5.32 (e) an irrevocable consent statement, to be signed by the 5.33 applicant, which states that suits and actions relating to the 5.34 subject matter of the application or acts or omissions arising 5.35 from it may be commenced against the applicant in any court of 5.36 competent jurisdiction in the state by the service on the 6.1 secretary of state of any summons, process, or pleadings 6.2 authorized by the laws of this state. If any summons, process, 6.3 or pleadings is served upon the secretary of state, it must be 6.4 by duplicate copies. One copy must be retained in the office of 6.5 the secretary of state and the other copy must be forwarded 6.6 immediately by certified mail to the address of the applicant, 6.7 as shown by the records of the commission; and 6.8 (f) an affirmative action plan establishing goals and 6.9 timetables consistent with the Minnesota Human Rights Act, 6.10 chapter 363. 6.11 Subd. 2. [INVESTIGATION.] Before granting a license under 6.12 this section, the commissioner shall conduct a comprehensive 6.13 background and financial investigation of the applicant and 6.14 sources of financing. The commissioner may charge an applicant 6.15 an investigation fee to cover the cost of the investigation. 6.16 Subd. 3. [HEARINGS.] Before granting a license under this 6.17 section, the commissioner shall conduct one or more public 6.18 hearings in each area where a casino is proposed to be located. 6.19 The commissioner shall also request comments on the application 6.20 from the city council or town board of the city or town where a 6.21 casino is proposed to be located, or from the county board if it 6.22 is proposed to be located outside a city or town, and from the 6.23 metropolitan council. If a town board or city council, or a 6.24 county board if the casino is proposed to be located outside a 6.25 city or town, notifies the commissioner that it does not consent 6.26 to being a site for the casino, the commissioner shall not 6.27 consider that location in granting a license. 6.28 Subd. 4. [LICENSE ISSUANCE.] If, after considering the 6.29 information received at the hearing or hearings and the comments 6.30 requested under subdivision 3, the commissioner determines that 6.31 the license will not adversely affect the public health, 6.32 welfare, and safety, and that the applicant is financially able 6.33 to operate a casino, the commissioner shall issue a license to 6.34 the applicant. The license is effective until revoked or 6.35 suspended by the commissioner or relinquished by the licensee. 6.36 Subd. 5. [CHANGES IN OWNERSHIP OR MANAGEMENT.] If a change 7.1 in the officers, directors, shareholders, or other persons with 7.2 a present or future direct or indirect financial or management 7.3 interest in the licensee, or a change of ownership of more than 7.4 five percent of the licensee's shares is made after the 7.5 application is filed or the license issued, the applicant or 7.6 licensee must notify the commissioner of the changes within five 7.7 days of their occurrence and provide the affidavit required by 7.8 subdivision 1, clause (d). 7.9 Subd. 6. [LICENSE SUSPENSION AND REVOCATION.] (a) The 7.10 commissioner may revoke a license under this section for (i) a 7.11 violation of law, order, or rule; (ii) operation of a casino in 7.12 violation of approved game procedures or an approved security 7.13 plan, which in the commissioner's opinion adversely affects 7.14 public health, welfare, or safety or the integrity of gaming in 7.15 Minnesota; (iii) an intentional false statement made in a 7.16 license application; or (iv) failure to perform material 7.17 covenants or representations made in a license application. 7.18 (b) The commissioner may: 7.19 (1) suspend a casino license for up to one year for an 7.20 action described in paragraph (a), clause (i) or (ii); and 7.21 (2) suspend a casino license indefinitely if the 7.22 commissioner determines that the licensee has as an officer, 7.23 director, shareholder, or other person with a direct, indirect, 7.24 or beneficial interest a person who is in the commissioner's 7.25 opinion inimical to the public health, welfare, or safety or the 7.26 integrity of gaming in Minnesota, or who cannot be certified 7.27 under subdivision 1, clause (d). 7.28 (c) The commissioner may not revoke or suspend a license 7.29 under this subdivision unless the commissioner has granted the 7.30 licensee a reasonable amount of time to cure the violation 7.31 giving rise to the revocation or suspension and, in the 7.32 commissioner's reasonable judgment, the licensee has failed to 7.33 do so. 7.34 (d) A license revocation or suspension under this 7.35 subdivision is a contested case under sections 14.57 to 14.69 of 7.36 the Administrative Procedure Act, and is in addition to criminal 8.1 penalties imposed for a violation of law or rule. 8.2 Sec. 8. [349B.04] [EMPLOYEE LICENSES.] 8.3 Subdivision 1. [LICENSE REQUIRED.] Any person employed at 8.4 a licensed casino in an occupation that the commissioner by 8.5 order determines requires licensing in order to ensure the 8.6 public health, welfare, or safety, or the integrity of gaming in 8.7 Minnesota, must have a license issued by the commissioner. 8.8 Subd. 2. [APPLICATION.] (a) An application for a casino 8.9 occupational license must be on a form and in a manner 8.10 prescribed by the commissioner. The application must be 8.11 accompanied by an affidavit of qualification that the applicant: 8.12 (1) does not have a felony conviction of record in a state 8.13 or federal court and does not have a state or federal felony 8.14 charge pending; 8.15 (2) is not and never has been connected with or engaged in 8.16 an illegal business; 8.17 (3) has never been found guilty of fraud or 8.18 misrepresentation in connection with gambling; and 8.19 (4) has never been found guilty of a serious violation of 8.20 law or rule relating to gambling. 8.21 (b) The application must also contain an irrevocable 8.22 consent statement, to be signed by the applicant, which states 8.23 that suits and actions relating to the subject matter of the 8.24 application or acts or omissions arising from it may be 8.25 commenced against the applicant in any court of competent 8.26 jurisdiction in this state by the service on the secretary of 8.27 state of any summons, process, or pleading authorized by the 8.28 laws of this state. If any summons, process, or pleading is 8.29 served upon the secretary of state, it must be by duplicate 8.30 copies. One copy must be retained in the office of the 8.31 secretary of state and the other copy must be forwarded 8.32 immediately by certified mail to the address of the applicant, 8.33 as shown by the records of the commissioner. 8.34 Subd. 3. [INVESTIGATIONS.] The commissioner shall 8.35 investigate each applicant for a casino occupational license to 8.36 the extent the commissioner deems necessary. The commissioner 9.1 may require that an applicant be fingerprinted or furnish the 9.2 applicant's fingerprints. Investigations must be conducted and 9.3 their costs paid in the manner prescribed by section 349B.03, 9.4 subdivision 2. The commissioner may cooperate with national and 9.5 international organizations and agencies in conducting 9.6 investigations. The commissioner may by rule provide for 9.7 examining the qualifications of an applicant for the license 9.8 being applied for. 9.9 Subd. 4. [LICENSE ISSUANCE AND RENEWAL.] If the 9.10 commissioner determines that the applicant is qualified for the 9.11 occupation for which licensing is sought and will not adversely 9.12 affect the public health, welfare, and safety or the integrity 9.13 of gaming in Minnesota, the commissioner may issue a casino 9.14 occupational license to the applicant. If the commissioner 9.15 makes a similar finding for a renewal of a casino occupational 9.16 license the commissioner may renew the license. Casino 9.17 occupational licenses are effective for one year. 9.18 Subd. 5. [REVOCATION AND SUSPENSION.] (a) The commissioner 9.19 may revoke a casino occupational license for a violation of law 9.20 or rule which in the commissioner's opinion adversely affects 9.21 the integrity of gaming in Minnesota, or for an intentional 9.22 false statement made in a license application. The commissioner 9.23 may suspend a casino occupational license for up to one year for 9.24 a violation of law, order, or rule. 9.25 (b) The commissioner may not revoke or suspend a license 9.26 under this subdivision unless the commissioner has granted the 9.27 licensee a reasonable amount of time to cure the violation 9.28 giving rise to the revocation or suspension and, in the 9.29 commissioner's reasonable judgment, the licensee has failed to 9.30 do so. 9.31 (c) A license revocation or suspension for more than 90 9.32 days is a contested case under sections 14.57 to 14.69 of the 9.33 Administrative Procedure Act and is in addition to criminal 9.34 penalties imposed for a violation of law or rule. The 9.35 commissioner may summarily suspend a license for more than 90 9.36 days prior to a contested case hearing where it is necessary to 10.1 ensure the integrity of gaming. A contested case hearing must 10.2 be held within 20 days of the summary suspension and the 10.3 administrative law judge's report must be issued within 20 days 10.4 from the close of the hearing record. In all cases involving 10.5 summary suspension the commissioner must issue its final 10.6 decision within 30 days from receipt of the report of the 10.7 administrative law judge and subsequent exceptions and argument 10.8 under section 14.61. 10.9 Sec. 9. [349B.05] [LICENSE FEES AND PAYMENTS.] 10.10 Subdivision 1. [CASINO LICENSE.] (a) As a condition of 10.11 issuance of a license under section 349B.03 the applicant must 10.12 make to the commissioner, for deposit into the multistadium 10.13 revenue bond guaranty fund provided in article 3 of this act, a 10.14 onetime payment of $450,000,000. This payment may not be 10.15 prorated or paid in installments. The payment must be made 10.16 before a casino license may be issued. 10.17 (b) No part of this payment may be refunded to the licensee 10.18 unless, during the 30 years immediately following the date of 10.19 license issuance: 10.20 (1) more than one casino license in the seven-county 10.21 metropolitan area is authorized by law; 10.22 (2) the provisions of this chapter authorizing operation of 10.23 the casino are repealed; 10.24 (3) the legislature authorizes a new form of gambling that 10.25 is not currently authorized under chapter 240, 349, 349B, or any 10.26 other provision of law; or 10.27 (4) new Indian gaming is approved within the seven-county 10.28 metropolitan area on land that is not currently held in trust by 10.29 the Bureau of Indian Affairs for an existing Minnesota Indian 10.30 tribe. 10.31 (c) If one or more of these events occurs during that 10.32 period, the licensee is entitled to a refund of the payment at 10.33 the rate of $15,000,000 for each full or partial year during the 10.34 30-year period in which an event described in paragraph (b), is 10.35 in effect. 10.36 Subd. 2. [CASINO OCCUPATIONAL LICENSES.] The commissioner 11.1 shall establish by rule a schedule of fees, not exceeding $100 11.2 per year, for casino occupational licenses. License payments 11.3 must be deposited in the general fund. 11.4 Sec. 10. [349B.06] [GAME PROCEDURES.] 11.5 Subdivision 1. [FILING.] A casino licensee under this 11.6 chapter must file with the commissioner a complete set of rules 11.7 and procedures to govern all forms of gaming authorized at the 11.8 casino. The game procedures must specify payout percentages or 11.9 ranges of payout percentages for each form of gaming. The 11.10 commissioner shall review the game procedures and may approve 11.11 them if the commissioner determines that they adequately 11.12 guarantee the integrity and fairness of gaming and the interests 11.13 of casino patrons. A casino licensee may not conduct gaming at 11.14 the casino except in conformity with the approved game 11.15 procedures. The commissioner may conduct audits, inspections, 11.16 and investigations of gaming at the casino to ensure compliance 11.17 with this section. 11.18 Subd. 2. [AMENDMENTS.] A casino licensee may amend 11.19 approved game procedures only if (1) the amendments have been 11.20 filed with and approved by the commissioner, and (2) a copy of 11.21 the amended procedures have been available to the public at the 11.22 facility for at least three days before their adoption. 11.23 Subd. 3. [GAMING AUTHORIZED.] Game procedures approved by 11.24 the commissioner may include only the following forms of gaming: 11.25 (1) card games, including blackjack; 11.26 (2) bingo; and 11.27 (3) video gaming devices and slot machines. 11.28 Subd. 4. [AGREEMENT.] An individual who participates in a 11.29 game authorized at the casino agrees to be bound by the rules 11.30 and procedures applicable to that particular game. 11.31 Sec. 11. [349B.07] [SECURITY PLAN.] 11.32 Subdivision 1. [FILING.] A casino licensee under this 11.33 chapter must file with the commissioner a comprehensive plan for 11.34 security and surveillance at the casino. The security plan must 11.35 provide that security and surveillance will be undertaken only 11.36 by persons holding casino occupational licenses. The security 12.1 plan must provide for the testing of all gambling devices by the 12.2 commissioner, or by a private entity under contract to the 12.3 commissioner. The commissioner shall review the security plan 12.4 and may approve it if the commissioner determines that it meets 12.5 customary industry standards and is reasonably adequate to 12.6 ensure the integrity and safety of casino operations. A casino 12.7 licensee may not operate the casino except in conformity with 12.8 the approved security plan. The commissioner may conduct 12.9 audits, inspections, and investigations of gambling at the 12.10 casino to ensure compliance with this section. 12.11 Subd. 2. [AMENDMENTS.] A casino licensee may amend a 12.12 security plan only if the amendments have been filed with and 12.13 approved by the commissioner. 12.14 Sec. 12. [349B.08] [EXCLUSION OF CERTAIN PERSONS.] 12.15 Subdivision 1. [PERSONS EXCLUDED.] The commissioner may by 12.16 order exclude from a licensed casino a person who: 12.17 (1) has a felony conviction of record under the laws of any 12.18 state or the United States; 12.19 (2) has had a gaming-related license suspended, revoked, or 12.20 denied by an authority in another jurisdiction; or 12.21 (3) is determined by the commissioner, on the basis of 12.22 evidence presented to the commissioner, to be a threat to the 12.23 integrity of gaming in Minnesota. 12.24 Subd. 2. [HEARING; APPEAL.] An order to exclude a person 12.25 from a licensed casino must be made by the commissioner at a 12.26 public hearing of which the person to be excluded must have at 12.27 least five days' notice. If present at the hearing, the person 12.28 must be permitted to show cause why the exclusion should not be 12.29 ordered. An appeal of the order may be made in the same manner 12.30 as other appeals under sections 14.63 to 14.68. 12.31 Subd. 3. [REASONABLE TIME TO CURE.] The commissioner may 12.32 not issue an order under this subdivision unless the 12.33 commissioner has granted the person who is the subject of the 12.34 order a reasonable amount of time to cure the violation or 12.35 condition giving rise to the order and, in the commissioner's 12.36 reasonable judgment, the person has failed to do so. 13.1 Subd. 4. [PROHIBITIONS.] It is a gross misdemeanor for a 13.2 person named in an exclusion order to enter, attempt to enter, 13.3 or be on the premises of a licensed casino while the order is in 13.4 effect, and for a casino licensee knowingly to permit an 13.5 excluded person to enter or be on the premises. 13.6 Subd. 5. [EXCLUSIONS BY CASINO.] A casino licensee may 13.7 eject and exclude from the casino premises any person who is in 13.8 violation of any state law or commissioner's rule or order or 13.9 who is a threat to the integrity of gaming or the public 13.10 safety. A person so excluded from the casino premises may 13.11 appeal the exclusion to the commissioner and must be given a 13.12 public hearing on the appeal upon request. At the hearing the 13.13 person must be given the opportunity to show cause why the 13.14 exclusion should not have been ordered. If the commissioner 13.15 after the hearing finds that the integrity of gambling and the 13.16 public safety do not justify the exclusion, the commissioner 13.17 shall order the casino licensee making the exclusion to 13.18 reinstate or readmit the person. An appeal of a commissioner's 13.19 order upholding the exclusion is governed by sections 14.63 to 13.20 14.68. 13.21 Sec. 13. [349B.081] [DETENTION OF SUSPECTS.] 13.22 Subdivision 1. [GENERALLY.] The commissioner, an agent of 13.23 the commissioner, or a security officer who is licensed under 13.24 Minnesota Rules, chapter 7878, and is employed by a casino 13.25 licensee, may detain a person if probable cause exists to 13.26 believe that the person detained has violated section 609.76 13.27 while at a casino authorized by this chapter. 13.28 Subd. 2. [CIRCUMSTANCES JUSTIFYING DETENTION.] (a) A 13.29 person may be detained to: 13.30 (1) require the person to provide identification or to 13.31 verify identification; 13.32 (2) inquire as to whether the person possesses any 13.33 contraband as provided by section 609.762, subdivision 1; 13.34 (3) notify a peace officer of the alleged violation; or 13.35 (4) institute criminal proceedings against the person. 13.36 (b) The person detained must be promptly informed of the 14.1 purpose of the detention and may not be subjected to unnecessary 14.2 or unreasonable force, nor to interrogation against the person's 14.3 will. If at any time the person detained requests the licensee 14.4 to summon a peace officer, the licensee must notify a peace 14.5 officer immediately. A casino licensee must not detain a person 14.6 for more than one hour unless a peace officer requests 14.7 detention, in which case the person may be detained until the 14.8 peace officer has accepted custody of or released the person. 14.9 Subd. 3. [ARREST.] Upon a charge being made by a licensee, 14.10 a peace officer may arrest a person without a warrant if the 14.11 officer has probable cause to believe that the person has 14.12 committed or attempted to commit an offense described in section 14.13 609.76. 14.14 Subd. 4. [IMMUNITY.] No casino licensee or peace officer 14.15 is criminally or civilly liable for any detention authorized by 14.16 this section if probable cause exists for the detention, and the 14.17 detention was not conducted with unreasonable force or in bad 14.18 faith. 14.19 Sec. 14. [349B.085] [MINORS PROHIBITED.] 14.20 A person under the age of 18 years may not enter, play a 14.21 game at, or win a prize from, a casino licensed under this 14.22 chapter. 14.23 Sec. 15. [349B.09] [AUDIT.] 14.24 The commissioner shall take all actions the commissioner 14.25 determines necessary, including appointment of one or more 14.26 on-site auditors who are employees of the department of public 14.27 safety, to ensure adequate accounting and auditing of funds and 14.28 finances of the casino. The commissioner shall arrange with the 14.29 licensee for an annual outside audit of the casino's financial 14.30 operations. The commissioner shall assess to the licensee all 14.31 costs incurred by the commissioner in complying with this 14.32 section. 14.33 Sec. 16. [349B.10] [PAYMENT TO STATE.] 14.34 Subdivision 1. [TAX IMPOSED.] There is imposed a tax on 14.35 gaming conducted at the casino under this chapter at the rate of 14.36 12 percent of gross gaming receipts. 15.1 Subd. 2. [PAYMENT.] The casino licensee must make payments 15.2 of the tax due under subdivision 1 to the commissioner in 15.3 monthly installments. The casino licensee must make payments 15.4 for each month within 30 days after the end of the month. 15.5 Payments under this subdivision must be made in a manner and on 15.6 a form prescribed by the commissioner. 15.7 Subd. 3. [REVENUE.] Revenue collected by the commissioner 15.8 under this section must be deposited in the state treasury and 15.9 credited as follows: 15.10 (1) 1.0 percent to the general fund; 15.11 (2) 10.5 percent to the multistadium revenue debt service 15.12 fund; and 15.13 (3) 0.5 percent to a compulsive gambling account in the 15.14 state treasury. Money in this account is annually appropriated 15.15 to the commissioner of human services for the treatment of 15.16 compulsive gambling under section 245.98. 15.17 Sec. 17. [349B.11] [COMPULSIVE GAMBLING HOTLINE POSTING.] 15.18 A casino licensee must post prominently at locations 15.19 throughout the casino, in a manner approved by the commissioner 15.20 of human services, the toll-free telephone number established by 15.21 the commissioner of human services in connection with the 15.22 compulsive gambling program. 15.23 Sec. 18. [349B.12] [LOCAL LICENSE.] 15.24 Except as specifically provided otherwise by law, no 15.25 political subdivision may require a license to operate a casino, 15.26 regulate or restrict gaming authorized at a casino, or impose a 15.27 tax or fee on the conduct of gaming authorized at the casino. 15.28 Sec. 19. Minnesota Statutes 2002, section 541.20, is 15.29 amended to read: 15.30 541.20 [RECOVERY OF MONEY LOST.] 15.31 Every person who, by playing at cards, dice, or other game, 15.32 or by betting on the hands or sides of such as are gambling, 15.33 shall lose to any person so playing or betting any sum of money 15.34 or any goods, and pays or delivers the same, or any part 15.35 thereof, to the winner, may sue for and recover such money by a 15.36 civil action, before any court of competent jurisdiction. For 16.1 purposes of this section, gambling shall not include pari-mutuel 16.2 wagering conducted under a license issued pursuant to chapter 16.3 240, purchase or sale of tickets in the state lottery, or 16.4 gambling authorized underchapterschapter 349and, 349A, or 16.5 349B. 16.6 Sec. 20. Minnesota Statutes 2002, section 541.21, is 16.7 amended to read: 16.8 541.21 [COMMITMENTS FOR GAMBLING DEBT VOID.] 16.9 Every note, bill, bond, mortgage, or other security or 16.10 conveyance in which the whole or any part of the consideration 16.11 shall be for any money or goods won by gambling or playing at 16.12 cards, dice, or any other game whatever, or by betting on the 16.13 sides or hands of any person gambling, or for reimbursing or 16.14 repaying any money knowingly lent or advanced at the time and 16.15 place of such gambling or betting, or lent and advanced for any 16.16 gambling or betting to any persons so gambling or betting, shall 16.17 be void and of no effect as between the parties to the same, and 16.18 as to all persons except such as hold or claim under them in 16.19 good faith, without notice of the illegality of the 16.20 consideration of such contract or conveyance. The provisions of 16.21 this section shall not apply to: (1) pari-mutuel wagering 16.22 conducted under a license issued pursuant to chapter 240; (2) 16.23 purchase of tickets in the state lottery under chapter 349A; (3) 16.24 gaming activities conducted pursuant to the Indian Gaming 16.25 Regulatory Act, 25 U.S.C. 2701 et seq.;or(4) lawful gambling 16.26 activities permitted under chapter 349; or (5) gaming licensed 16.27 under chapter 349B. 16.28 Sec. 21. Minnesota Statutes 2002, section 609.75, 16.29 subdivision 3, is amended to read: 16.30 Subd. 3. [WHAT ARE NOT BETS.] The following are not bets: 16.31 (1) A contract to insure, indemnify, guarantee or otherwise 16.32 compensate another for a harm or loss sustained, even though the 16.33 loss depends upon chance. 16.34 (2) A contract for the purchase or sale at a future date of 16.35 securities or other commodities. 16.36 (3) Offers of purses, prizes or premiums to the actual 17.1 contestants in any bona fide contest for the determination of 17.2 skill, speed, strength, endurance, or quality or to the bona 17.3 fide owners of animals or other property entered in such a 17.4 contest. 17.5 (4) The game of bingo when conducted in compliance with 17.6 sections 349.11 to 349.23. 17.7 (5) A private social bet not part of or incidental to 17.8 organized, commercialized, or systematic gambling. 17.9 (6) The operation of equipment or the conduct of a raffle 17.10 under sections 349.11 to 349.22, by an organization licensed by 17.11 the Gambling Control Board or an organization exempt from 17.12 licensing under section 349.166. 17.13 (7) Pari-mutuel betting on horse racing when the betting is 17.14 conducted under chapter 240. 17.15 (8) The purchase and sale of state lottery tickets under 17.16 chapter 349A. 17.17 (9) Gaming licensed under chapter 349B. 17.18 Sec. 22. Minnesota Statutes 2002, section 609.761, is 17.19 amended by adding a subdivision to read: 17.20 Subd. 2a. [LICENSED CASINO.] Sections 609.755 and 609.76 17.21 do not prohibit the operation of a casino licensed under chapter 17.22 349B. 17.23 ARTICLE 3 17.24 THREE STADIUM FUNDING FOR TWINS, 17.25 GOPHERS, AND VIKINGS 17.26 Section 1. [DEFINITIONS.] 17.27 Subdivision 1. [APPLICATION.] The definitions in this 17.28 section apply in this article. 17.29 Subd. 2. [COMMISSIONER.] "Commissioner" means the 17.30 commissioner of finance. 17.31 Subd. 3. [LOCAL PUBLIC PARTNER.] "Local public partner" 17.32 means a city or county, or a city and its county acting jointly, 17.33 separately chosen by the Minnesota Twins and the Minnesota 17.34 Vikings to build and own a stadium for the primary use of the 17.35 Twins and Vikings, respectively, on the local public partner's 17.36 site, subject to a long-term use agreement with the team. 18.1 Subd. 4. [REGENTS.] "Regents" means the Board of Regents 18.2 of the University of Minnesota, as the public governing body 18.3 having control of the University of Minnesota Football Gophers. 18.4 Sec. 2. [AUTHORITY TO ISSUE REVENUE BONDS; PURPOSE.] 18.5 Subdivision 1. [FOR THREE STADIUMS.] The commissioner of 18.6 finance may issue up to $....... of aggregate principal amount 18.7 of revenue bonds, the proceeds of which must be deposited in the 18.8 multistadium revenue bond proceeds fund in the state treasury to 18.9 be used to make grants to the local public partners and the 18.10 regents to help to pay to predesign, design, construct, furnish, 18.11 and equip stadiums for the Twins, Gophers, and Vikings. The 18.12 conditions and terms related to the issuance of the bonds are as 18.13 provided in this act and in other law and agreements and other 18.14 bond and construction financing instruments that are in the 18.15 determination of the commissioner or the commissioner's agent or 18.16 trustee necessary or desirable in transactions of this kind to 18.17 achieve the public purpose of this act and to ensure the 18.18 provision of adequate security for the payment when due of the 18.19 interest of, and principal on, the bonds authorized, issued, and 18.20 sold as provided in this act. 18.21 Subd. 2. [AUTHORITY NOT AFFECTED BY TAXABILITY OF 18.22 INTEREST.] The bonds authorized by this section may be issued 18.23 without regard to whether the interest to be paid on them is 18.24 gross income for federal tax purposes. 18.25 Sec. 3. [PROCESS TO CONSTRUCT AND FINANCE STADIUMS.] 18.26 Subdivision 1. [SELECTION OF LOCAL PUBLIC PARTNERS AND 18.27 SITES.] (a) The Twins and Vikings each must choose a local 18.28 public partner to provide a site, construct, and own a stadium 18.29 for its team. If majority ownership of the team changes during 18.30 this process, the new ownership must agree to be bound by the 18.31 former majority owner's obligations with respect to this act, 18.32 and, in particular, to the process in this article. 18.33 (b)(1) By ..... 1, ...., the Twins must notify the 18.34 commissioner of its choice, the choice's agreement to be the 18.35 local public partner, and their joint agreement on a site. 18.36 (2) By ........ 1, ...., the regents must choose a site for 19.1 a stadium for the Gophers. 19.2 (3) By ....... 1, ...., the Vikings must notify the 19.3 commissioner of its choice, the choice's agreement to be the 19.4 local public partner, and their joint agreement on a site. 19.5 (c) The commissioner may reorder or cancel construction 19.6 priorities under this act if a team, its local public partner, 19.7 or the regents miss the deadlines in paragraph (b) without good 19.8 cause. 19.9 (d) The Twins and their local public partner must notify 19.10 the commissioner by September 1, 2005, of their use agreement. 19.11 The Vikings and their local public partner must notify the 19.12 commissioner by January 1, 2009, of their use agreement. 19.13 Subd. 2. [TEAM AGREEMENT TO LEASE.] (a) In addition to 19.14 other terms and conditions of its agreement with its local 19.15 public partner, not inconsistent with this act, the Twins and 19.16 the Vikings must each agree to lease its team's stadium from its 19.17 local public partner for at least 30 years. 19.18 (b) The Twins and Vikings each must also agree with their 19.19 local public partners to make a contribution in an amount at 19.20 least equal to the amount of the state grant for its team's 19.21 stadium to the team's local public partner to be used to 19.22 predesign, design, construct, furnish, and equip the stadium. 19.23 (c) The regents must provide an amount at least equal to 19.24 the amount of their state grant for the Gophers' stadium to be 19.25 used to predesign, design, construct, furnish, and equip the 19.26 stadium. 19.27 Subd. 3. [STATE OBLIGATION.] After the agreements under 19.28 subdivisions 1 and 2 are entered into, the commissioner of 19.29 finance must agree to issue up to the principal amount of 19.30 revenue bonds of the state of Minnesota that are authorized 19.31 elsewhere in this article. The bonds are to make grants to 19.32 partly defray the cost to predesign, design, construct, finance, 19.33 and equip the stadiums described in this article. The bonds 19.34 must mature not more than 30 years from the first date of issue. 19.35 Subd. 4. [COST OVERRUNS.] Before making final payments on 19.36 the grants, the commissioner must determine that all cost 20.1 overruns for the stadiums, if any, must be paid by the team 20.2 owners or the local public partners from nonstate sources. 20.3 Subd. 5. [APPROPRIATION.] (a) The proceeds of the revenue 20.4 bonds sold under this act must be deposited in the multistadium 20.5 revenue bond proceeds fund in the state treasury. 20.6 (b) The amounts necessary to make the grants authorized in 20.7 this act are appropriated from the multistadium revenue bond 20.8 proceeds fund in the state treasury to the commissioner to make 20.9 grants to the Twins' and Vikings' designated local public 20.10 partner for the construction of the Twins' and Vikings' stadiums 20.11 and to the regents for construction of a sports stadium 20.12 primarily for its football Gophers as otherwise provided in this 20.13 act. 20.14 (c) The amounts necessary are appropriated to the 20.15 commissioner from the multistadium revenue bond debt service 20.16 fund in the state treasury to make all payments when due on all 20.17 debt service on the bonds issued under this act and that are 20.18 outstanding, until all the bonds are retired or defeased. 20.19 Subd. 6. [COVENANTS, PLEDGES; GUARANTIES.] The 20.20 commissioner, or the commissioner's agent or trustee for this 20.21 purpose may require additional covenants, pledges, and 20.22 guarantees as are necessary or desirable to secure the payment 20.23 when due of all debt service under this act and to ensure the 20.24 accomplishment of all obligations of the parties that relate to 20.25 that security. 20.26 Sec. 4. [NO TAX RATE HIKES BECAUSE OF STADIUM.] 20.27 The rate of all state and local taxes inside the stadium on 20.28 admissions and sales or use of goods and services must not 20.29 exceed the tax rate on admissions to other facilities and on 20.30 sales or use of goods and services outside the stadium in the 20.31 same taxing jurisdiction. 20.32 Sec. 5. [PROCEDURE; PLEDGE; PAYMENT.] 20.33 Subdivision 1. [BONDS PAID WITH DEBT SERVICE FUNDS.] The 20.34 revenue bonds authorized by this act must be sold and issued by 20.35 the commissioner in the manner and upon the terms and conditions 20.36 generally provided by Minnesota Statutes, sections 16A.672 to 21.1 16A.675, for the sale and issuance of bonds and certificates of 21.2 indebtedness, except as otherwise provided in this act. The 21.3 bonds are payable only from and secured by an irrevocable pledge 21.4 of the revenues to be derived from gifts and investment returns 21.5 on them and other money deposited in the multistadium debt 21.6 service fund and multistadium debt service guaranty fund as 21.7 provided in this act. 21.8 Subd. 2. [NO FULL FAITH AND CREDIT OF THE STATE.] The 21.9 legislature must not appropriate money from the general fund to 21.10 pay for these bonds. The bonds are not public debt and the full 21.11 faith credit and taxing powers of the state are not pledged for 21.12 their payment. 21.13 Subd. 3. [NO OTHER STATE TAXES.] The revenue bonds 21.14 authorized in this act and the interest on them must not be 21.15 paid, directly or indirectly, in whole or in part, from a tax of 21.16 statewide application on any class of property, income, 21.17 transaction, or privilege except as specifically provided in 21.18 this act. 21.19 Subd. 4. [FORM.] The bonds may: 21.20 (1) bear the date or dates; 21.21 (2) mature serially at a time or times not exceeding 30 21.22 years from their date or dates; 21.23 (3) be in the form; 21.24 (4) carry the registration privileges; 21.25 (5) be payable at a place or places; 21.26 (6) be subject to terms of redemption prior to maturity 21.27 with or without premium; 21.28 (7) be delivered to the purchasers at times and places; and 21.29 (8) contain terms and covenants, consistent with this act, 21.30 all as may be provided by order of the commissioner directing 21.31 the issuance of the bonds as authorized in this act. 21.32 Subd. 5. [EXECUTION.] The bonds must be executed by the 21.33 officers designated by the commissioner to execute them, in the 21.34 manner authorized by Minnesota Statutes, sections 16A.672 to 21.35 16A.675. 21.36 Subd. 6. [BOND STATEMENT; REGISTRATION.] Each bond shall 22.1 state upon its face that it is payable solely from and secured 22.2 by an irrevocable pledge of the revenues referred to in 22.3 subdivision 1 and that it does not constitute a debt or 22.4 obligation of the state of Minnesota within the meaning or 22.5 application of any constitutional or statutory limitation or 22.6 provision. A copy of the order of the commissioner in the 22.7 issuance of the bonds must be maintained by the commissioner. 22.8 Subd. 7. [DEBT SERVICE; MULTISTADIUM REVENUE BONDS.] (a) 22.9 The commissioner must pay from irrevocable appropriations from 22.10 the multistadium revenue bond debt service fund or otherwise 22.11 provide for the payment of the interest coming due on the 22.12 revenue bonds, until paid and for the payment of the principal 22.13 and any premium coming due on the bonds at maturity or upon any 22.14 earlier date upon which the bonds are called for redemption. 22.15 Minnesota Statutes, sections 16A.672 to 16A.675 apply to the 22.16 bonds. 22.17 (b) Of the tax imposed on gross gaming receipts of the 22.18 casino, 10.5 percent must be deposited monthly in the 22.19 multistadium revenue bond debt service fund established in 22.20 Minnesota Statutes, chapter 349B, to pay when due all principal 22.21 and interest payments on the revenue bonds issued under this 22.22 article. When all the debt service is paid and all the bonds 22.23 are retired or defeased, the deposits required by this paragraph 22.24 may instead be deposited in the general fund. The money 22.25 necessary to make the debt service payments under this paragraph 22.26 is appropriated. 22.27 Sec. 6. [DEBT SERVICE FUND INVESTMENTS.] 22.28 Money not currently needed in the multistadium revenue bond 22.29 debt service fund and in the multistadium debt service guaranty 22.30 fund as determined by the commissioner may be invested by the 22.31 state board of investment, in the same manner and extent as 22.32 investments are authorized by Minnesota Statutes, section 11.24, 22.33 for certain state retirement funds. 22.34 Sec. 7. Minnesota Statutes 2002, section 272.02, is 22.35 amended by adding a subdivision to read: 22.36 Subd. 68. [PROPERTY TAXES.] Real or personal property 23.1 acquired, owned, leased, controlled, used, or occupied as a 23.2 stadium by the Twins, Vikings, or Gophers under this act is 23.3 exempt from taxation but the property is subject to special 23.4 assessments levied by a political subdivision under chapter 429. 23.5 The stadium includes parking facilities and land necessary to 23.6 and part of the use of the stadium. A use of the property in 23.7 any manner different from its use as a stadium must not be 23.8 considered in determining the special benefit under chapter 429 23.9 received by the properties. Notwithstanding section 272.01, 23.10 subdivision 2, or 273.19, real or personal property on the 23.11 premises of the stadium leased by a local public partner that 23.12 operates the stadium to another person or entity for uses 23.13 directly related to the operation of the stadium is exempt from 23.14 taxation regardless of the length of the lease. This 23.15 subdivision expires one month after repayment of the bonds 23.16 issued to finance the stadium. 23.17 Sec. 8. [MULTISTADIUM REVENUE BOND GUARANTY FUND.] 23.18 The commissioner of finance must deposit the onetime casino 23.19 license fee of $450,000,000 described in article 2 of this act, 23.20 in the multistadium revenue bond guaranty fund. The money in 23.21 the fund must be used to pay, when due, the debt service on 23.22 revenue bonds issued under this act if the primary source of 23.23 revenue for the debt service is not sufficient to pay the debt 23.24 service when due as determined by the commissioner according to 23.25 law and trust agreements and other documents related to the 23.26 issuance and sale of the bonds. Money not currently needed for 23.27 the purpose of the fund, as determined by the commissioner, may 23.28 be invested by the State Board of Investment, in the same manner 23.29 as investments are authorized by Minnesota Statutes, section 23.30 11.24, for certain state retirement funds. When all debt 23.31 service is paid and the bonds are retired or defeased, the money 23.32 in the fund must be deposited in the general fund. The payments 23.33 necessary under this section are appropriated. 23.34 Sec. 9. [PRIORITY OF CONSTRUCTION START.] 23.35 Construction of the Twins stadium must begin no later than 23.36 January 1, 2006. Construction of the Gophers stadium must begin 24.1 no later than January 1, 2008. Construction of the Vikings 24.2 stadium must begin no later than January 1, 2010. 24.3 Sec. 10. [REORDERED PRIORITY IF DELAY.] 24.4 If the team and site owner do not meet the deadline to 24.5 start construction under this act, the priority for that stadium 24.6 is lost and the priority of a stadium with a later construction 24.7 start deadline may be advanced in order and to the extent 24.8 possible in time, as determined by the commissioner. 24.9 Sec. 11. [CONSTRUCTION; LABOR AND MATERIALS.] 24.10 By the time of the construction starts required in section 24.11 9, the Twins and Vikings each must have entered into an 24.12 agreement with its local public partner and the commissioner, 24.13 and the regents must have entered into an agreement with the 24.14 commissioner that obligates the local public partner, the team, 24.15 and regents, as applicable, to comply with at least the 24.16 following provisions: 24.17 (1) requiring the payment of the prevailing wage rate as 24.18 defined in Minnesota Statutes, section 177.42, to all 24.19 construction workers; 24.20 (2) requiring the provision to the local public partner of 24.21 a signed agreement between the team and the construction unions 24.22 that will work on the stadium that mandates a no-strike and 24.23 no-lockout period during construction of the stadium; and 24.24 (3) requiring that all construction materials for the 24.25 stadium produced from or containing steel, so far as 24.26 practicable, must use steel produced in the United States from 24.27 taconite produced in Minnesota. 24.28 ARTICLE 4 24.29 LAWFUL GAMBLING 24.30 Section 1. Minnesota Statutes 2002, section 297E.02, 24.31 subdivision 1, is amended to read: 24.32 Subdivision 1. [IMPOSITION.] A tax is imposed on all 24.33 lawful gambling other than (1) pull-tab deals or games; (2) 24.34 tipboard deals or games; and (3) items listed in section 24.35 297E.01, subdivision 8, clauses (4) and (5), at the rate of8.524.36 7.5 percent on the gross receipts as defined in section 297E.01, 25.1 subdivision 8, less prizes actually paid. The tax imposed by 25.2 this subdivision is in lieu of the tax imposed by section 25.3 297A.62 and all local taxes and license fees except a fee 25.4 authorized under section 349.16, subdivision 8, or a tax 25.5 authorized under subdivision 5. 25.6 The tax imposed under this subdivision is payable by the 25.7 organization or party conducting, directly or indirectly, the 25.8 gambling. 25.9 Sec. 2. Minnesota Statutes 2002, section 297E.02, 25.10 subdivision 4, is amended to read: 25.11 Subd. 4. [PULL-TAB AND TIPBOARD TAX.] (a) A tax is imposed 25.12 on the sale of each deal of pull-tabs and tipboards sold by a 25.13 distributor. The rate of the tax is1.71.5 percent of the 25.14 ideal gross of the pull-tab or tipboard deal. The sales tax 25.15 imposed by chapter 297A on the sale of the pull-tabs and 25.16 tipboards by the distributor is imposed on the retail sales 25.17 price less the tax imposed by this subdivision. The retail sale 25.18 of pull-tabs or tipboards by the organization is exempt from 25.19 taxes imposed by chapter 297A and is exempt from all local taxes 25.20 and license fees except a fee authorized under section 349.16, 25.21 subdivision 8. 25.22 (b) The liability for the tax imposed by this section is 25.23 incurred when the pull-tabs and tipboards are delivered by the 25.24 distributor to the customer or to a common or contract carrier 25.25 for delivery to the customer, or when received by the customer's 25.26 authorized representative at the distributor's place of 25.27 business, regardless of the distributor's method of accounting 25.28 or the terms of the sale. 25.29 The tax imposed by this subdivision is imposed on all sales 25.30 of pull-tabs and tipboards, except the following: 25.31 (1) sales to the governing body of an Indian tribal 25.32 organization for use on an Indian reservation; 25.33 (2) sales to distributors licensed under the laws of 25.34 another state or of a province of Canada, as long as all 25.35 statutory and regulatory requirements are met in the other state 25.36 or province; 26.1 (3) sales of promotional tickets as defined in section 26.2 349.12; and 26.3 (4) pull-tabs and tipboards sold to an organization that 26.4 sells pull-tabs and tipboards under the exemption from licensing 26.5 in section 349.166, subdivision 2. A distributor shall require 26.6 an organization conducting exempt gambling to show proof of its 26.7 exempt status before making a tax-exempt sale of pull-tabs or 26.8 tipboards to the organization. A distributor shall identify, on 26.9 all reports submitted to the commissioner, all sales of 26.10 pull-tabs and tipboards that are exempt from tax under this 26.11 subdivision. 26.12 (c) A distributor having a liability of $120,000 or more 26.13 during a fiscal year ending June 30 must remit all liabilities 26.14 in the subsequent calendar year by electronic means. 26.15 (d) Any customer who purchases deals of pull-tabs or 26.16 tipboards from a distributor may file an annual claim for a 26.17 refund or credit of taxes paid pursuant to this subdivision for 26.18 unsold pull-tab and tipboard tickets. The claim must be filed 26.19 with the commissioner on a form prescribed by the commissioner 26.20 by March 20 of the year following the calendar year for which 26.21 the refund is claimed. The refund must be filed as part of the 26.22 customer's February monthly return. The refund or credit is 26.23 equal to1.71.5 percent of the face value of the unsold 26.24 pull-tab or tipboard tickets, provided that the refund or credit 26.25 will be1.751.6 percent of the face value of the unsold 26.26 pull-tab or tipboard tickets for claims for a refund or credit 26.27 of taxes filed on the February20012003 monthly return. The 26.28 refund claimed will be applied as a credit against tax owing 26.29 under this chapter on the February monthly return. If the 26.30 refund claimed exceeds the tax owing on the February monthly 26.31 return, that amount will be refunded. The amount refunded will 26.32 bear interest pursuant to section 270.76 from 90 days after the 26.33 claim is filed. 26.34 Sec. 3. Minnesota Statutes 2002, section 297E.02, 26.35 subdivision 6, is amended to read: 26.36 Subd. 6. [COMBINED RECEIPTS TAX.] In addition to the taxes 27.1 imposed under subdivisions 1 and 4, a tax is imposed on the 27.2 combined receipts of the organization. As used in this section, 27.3 "combined receipts" is the sum of the organization's gross 27.4 receipts from lawful gambling less gross receipts directly 27.5 derived from the conduct of bingo, raffles, and paddlewheels, as 27.6 defined in section 297E.01, subdivision 8, for the fiscal year. 27.7 The combined receipts of an organization are subject to a tax 27.8 computed according to the following schedule: 27.9 If the combined receipts for the The tax is: 27.10 fiscal year are: 27.11 Not over $500,000 zero 27.12 Over $500,000, but not over 27.13 $700,0001.71.5 percent of the 27.14 amount over $500,000, but 27.15 not over $700,000 27.16 Over $700,000, but not over 27.17 $900,000$3,400$3,000 plus 27.183.43.0 percent of the 27.19 amount over $700,000, 27.20 but not over $900,000 27.21 Over $900,000$10,200$9,000 27.22 plus5.14.5 percent 27.23 of the amount over 27.24 $900,000 27.25 ARTICLE 5 27.26 EFFECTIVE DATE 27.27 Section 1. [EFFECTIVE DATE.] 27.28 Articles 2, 3, and 4 are effective January 1, 2005, if the 27.29 constitutional amendment proposed in article 1 is adopted by the 27.30 people at the 2004 general election.