HF 2685

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to lawful gambling; providing that a local 
  1.3             government unit's trade area for purpose of limiting 
  1.4             expenditures of net profits may consist of all or part 
  1.5             of the local government unit's school district; 
  1.6             allowing cities and counties to adopt reporting 
  1.7             requirements; allowing local government units to adopt 
  1.8             residence requirements as a condition of approval of 
  1.9             premises permits; amending Minnesota Statutes 1994, 
  1.10            section 349.213, as amended. 
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  Minnesota Statutes 1994, section 349.213, as 
  1.13  amended by Laws 1995, chapter 264, article 17, section 11, is 
  1.14  amended to read: 
  1.15     349.213 [LOCAL AUTHORITY.] 
  1.16     Subdivision 1.  [LOCAL REGULATION.] (a) A statutory or home 
  1.17  rule city or county has the authority to adopt more stringent 
  1.18  regulation of lawful gambling within its jurisdiction, including 
  1.19  the prohibition of lawful gambling, and may require a permit for 
  1.20  the conduct of gambling exempt from licensing under section 
  1.21  349.166.  The fee for a permit issued under this subdivision may 
  1.22  not exceed $100.  The authority granted by this subdivision does 
  1.23  not include the authority to require a license or permit to 
  1.24  conduct gambling by organizations or sales by distributors 
  1.25  licensed by the board.  The authority granted by this 
  1.26  subdivision does not include the authority to require an 
  1.27  organization to make specific expenditures of more than ten 
  1.28  percent from its net profits derived from lawful gambling.  For 
  2.1   the purposes of this subdivision, net profits are gross profits 
  2.2   less amounts expended for allowable expenses and paid in taxes 
  2.3   assessed on lawful gambling.  A statutory or home rule charter 
  2.4   city or a county may not require an organization conducting 
  2.5   lawful gambling within its jurisdiction to make an expenditure 
  2.6   to the city or county as a condition to operate within that city 
  2.7   or county, except as authorized under section 349.16, 
  2.8   subdivision 8, or 297E.02; provided, however, that an ordinance 
  2.9   requirement that such organizations must contribute ten percent 
  2.10  of their net profits derived from lawful gambling conducted at 
  2.11  premises within the city's or county's jurisdiction to a fund 
  2.12  administered and regulated by the responsible local unit of 
  2.13  government without cost to such fund, for disbursement by the 
  2.14  responsible local unit of government of the receipts for lawful 
  2.15  purposes, is not considered an expenditure to the city or county 
  2.16  nor a tax under section 297E.02, and is valid and lawful.  
  2.17     (b) A statutory or home rule city or county may by 
  2.18  ordinance require that a licensed organization conducting lawful 
  2.19  gambling within its jurisdiction expend all or a portion of its 
  2.20  expenditures for lawful purposes on lawful purposes conducted or 
  2.21  located within the city's or county's trade area.  Such an 
  2.22  ordinance must be limited to lawful purpose expenditures of 
  2.23  gross profits derived from lawful gambling conducted at premises 
  2.24  within the city's or county's jurisdiction, must define the 
  2.25  city's or county's trade area, and must specify the percentage 
  2.26  of lawful purpose expenditures which must be expended within the 
  2.27  trade area.  A trade area defined by a city under this 
  2.28  subdivision:  (1) must include each city contiguous to the 
  2.29  defining city; or (2) may include all or part of any city that 
  2.30  lies within the same school district as the defining city. 
  2.31     (c) A more stringent regulation or prohibition of lawful 
  2.32  gambling adopted by a political subdivision under this 
  2.33  subdivision must apply equally to all forms of lawful gambling 
  2.34  within the jurisdiction of the political subdivision, except a 
  2.35  political subdivision may prohibit the use of paddlewheels. 
  2.36     (d) A city or county may by ordinance adopt reasonable 
  3.1   reporting requirements for an organization that holds a permit 
  3.2   for a premises within the city or county, for the purposes of 
  3.3   determining an organization's compliance with an ordinance 
  3.4   adopted under this section.  The reporting requirements 
  3.5   authorized under this paragraph are in addition to any other 
  3.6   reporting requirements imposed by law on the organization. 
  3.7      Subd. 2.  [LOCAL APPROVAL.] Before issuing or renewing a 
  3.8   premises permit or bingo hall license, the board must notify the 
  3.9   city council of the statutory or home rule city in which the 
  3.10  organization's premises or the bingo hall is located or, if the 
  3.11  premises or hall is located outside a city, the county board of 
  3.12  the county and the town board of the town where the premises or 
  3.13  hall is located.  The board may require organizations or bingo 
  3.14  halls to notify the appropriate local government at the time of 
  3.15  application.  This required notification is sufficient to 
  3.16  constitute the notice required by this subdivision.  The board 
  3.17  may not issue or renew a premises permit or bingo hall license 
  3.18  unless the organization submits a resolution from the city 
  3.19  council or county board approving the premises permit or bingo 
  3.20  hall license.  The resolution must have been adopted within 60 
  3.21  days of the date of application for the new or renewed permit or 
  3.22  license.  A city or county may by ordinance establish as a 
  3.23  condition of approval of an organization's premises permit a 
  3.24  minimum percentage of an organization's active members who must 
  3.25  be residents of the city or county at the time the city or 
  3.26  county receives the notification under this subdivision. 
  3.27     Subd. 3.  [LOCAL GAMBLING TAX.] A statutory or home rule 
  3.28  charter city that has one or more licensed organizations 
  3.29  operating lawful gambling, and a county that has one or more 
  3.30  licensed organizations outside incorporated areas operating 
  3.31  lawful gambling, may impose a local gambling tax on each 
  3.32  licensed organization within the city's or county's 
  3.33  jurisdiction.  The tax may be imposed only if the amount to be 
  3.34  received by the city or county is necessary to cover the costs 
  3.35  incurred by the city or county to regulate lawful gambling.  The 
  3.36  tax imposed by this subdivision may not exceed three percent of 
  4.1   the gross receipts of a licensed organization from all lawful 
  4.2   gambling less prizes actually paid out by the organization.  A 
  4.3   city or county may not use money collected under this 
  4.4   subdivision for any purpose other than to regulate lawful 
  4.5   gambling.  A tax imposed under this subdivision is in lieu of 
  4.6   all other local taxes and local investigation fees on lawful 
  4.7   gambling.  A city or county that imposes a tax under this 
  4.8   subdivision shall annually, by March 15, file a report with the 
  4.9   board in a form prescribed by the board showing (1) the amount 
  4.10  of revenue produced by the tax during the preceding calendar 
  4.11  year, and (2) the use of the proceeds of the tax.