1.1                          A bill for an act 
  1.2             relating to lawful gambling; permitting local 
  1.3             regulation and investigation fees by townships; 
  1.4             amending Minnesota Statutes 2002, sections 349.16, 
  1.5             subdivision 8; 349.213, subdivision 1. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2002, section 349.16, 
  1.8   subdivision 8, is amended to read: 
  1.9      Subd. 8.  [LOCAL INVESTIGATION FEE.] A statutory or home 
  1.10  rule charter city, township, or county notified under section 
  1.11  349.213, subdivision 2, may assess an investigation fee on 
  1.12  organizations or bingo halls applying for or renewing a premises 
  1.13  permit or a bingo hall license.  An investigation fee may not 
  1.14  exceed the following limits: 
  1.15     (1) for cities of the first class, $500; 
  1.16     (2) for cities of the second class, $250; 
  1.17     (3) for all other cities and townships, $100; and 
  1.18     (4) for counties, $375. 
  1.19     Sec. 2.  Minnesota Statutes 2002, section 349.213, 
  1.20  subdivision 1, is amended to read: 
  1.21     Subdivision 1.  [LOCAL REGULATION.] (a) A statutory or home 
  1.22  rule city, township, or county has the authority to adopt more 
  1.23  stringent regulation of lawful gambling within its jurisdiction, 
  1.24  including the prohibition of lawful gambling, and may require a 
  1.25  permit for the conduct of gambling exempt from licensing under 
  2.1   section 349.166.  The fee for a permit issued under this 
  2.2   subdivision may not exceed $100.  The authority granted by this 
  2.3   subdivision does not include the authority to require a license 
  2.4   or permit to conduct gambling by organizations or sales by 
  2.5   distributors licensed by the board.  The authority granted by 
  2.6   this subdivision does not include the authority to require an 
  2.7   organization to make specific expenditures of more than ten 
  2.8   percent per year from its net profits derived from lawful 
  2.9   gambling.  For the purposes of this subdivision, net profits are 
  2.10  gross profits less amounts expended for allowable expenses and 
  2.11  paid in taxes assessed on lawful gambling.  A statutory or home 
  2.12  rule charter city, township, or a county may not require an 
  2.13  organization conducting lawful gambling within its jurisdiction 
  2.14  to make an expenditure to the city, township, or county as a 
  2.15  condition to operate within that city, township, or county, 
  2.16  except as authorized under section 349.16, subdivision 8, or 
  2.17  297E.02; provided, however, that an ordinance requirement that 
  2.18  such organizations must contribute ten percent per year of their 
  2.19  net profits derived from lawful gambling conducted at premises 
  2.20  within the city's, township's, or county's jurisdiction to a 
  2.21  fund administered and regulated by the responsible local unit of 
  2.22  government without cost to such fund, for disbursement by the 
  2.23  responsible local unit of government of the receipts for (i) 
  2.24  lawful purposes, or (ii) police, fire, and other emergency or 
  2.25  public safety-related services, equipment, and training, 
  2.26  excluding pension obligations, is not considered an expenditure 
  2.27  to the city, township, or county nor a tax under section 
  2.28  297E.02, and is valid and lawful.  A city, township, or county 
  2.29  making expenditures authorized under this paragraph must by 
  2.30  March 15 of each year file a report with the board, on a form 
  2.31  the board prescribes, that lists all such revenues collected and 
  2.32  expenditures for the previous calendar year. 
  2.33     (b) A statutory or home rule city, township, or county may 
  2.34  by ordinance require that a licensed organization conducting 
  2.35  lawful gambling within its jurisdiction expend all or a portion 
  2.36  of its expenditures for lawful purposes on lawful purposes 
  3.1   conducted or located within the city's, township's, or county's 
  3.2   trade area.  Such an ordinance must be limited to lawful purpose 
  3.3   expenditures of gross profits derived from lawful gambling 
  3.4   conducted at premises within the city's, township's, or county's 
  3.5   jurisdiction, must define the city's, township's, or county's 
  3.6   trade area, and must specify the percentage of lawful purpose 
  3.7   expenditures which must be expended within the trade area.  A 
  3.8   trade area defined by a city or township under this subdivision 
  3.9   must include each city and township contiguous to the defining 
  3.10  city. 
  3.11     (c) A more stringent regulation or prohibition of lawful 
  3.12  gambling adopted by a political subdivision under this 
  3.13  subdivision must apply equally to all forms of lawful gambling 
  3.14  within the jurisdiction of the political subdivision, except a 
  3.15  political subdivision may prohibit the use of paddlewheels.